Download pdf - Hemas Holdings PLC Investor Presentation Q3 - 2015/16

Investor PresentationFor the Nine Months ending December 31, 2015

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Table of Contents

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1 Hemas Business : Revenue and Profitability by Sector

2 History and Milestones

3 Consolidated YTD Group Performance

4 Consumer

5 Healthcare

6 Transportation

7 Leisure

8 Sustainability

9 Vision 2020

Hemas is a Wellness, Leisure and Travel

Business with YTD LKR 28 billion in revenues

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Consumer

39%

Healthcare

42%Leisure

8%

Transportation

5%

Others

6%

Revenue

Segmental Revenue and Operating Profits, YTD 2015/16

Operating Profit (Rs. Mn) Q3 YTD 2014/15

Consumer 1,384

Healthcare 1,285

Leisure 191

Transportation 271

Other (269)

Total 2,862

-350

0

350

700

1050

1400

Consumer Healthcare Leisure Transportation Other

Rs. M

illio

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History and Milestones

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201420132011

Entry into

Bangladesh

2007

Entered the

Hospital

business via

Acquisition

20031970s

Diversified into

travel & tourism

1962

Entered the

Consumer

business

1948

Founded

Hemas Drugs

Ltd.

Acquired J.L

Morison Son &

Jones

(Ceylon)

PLC

Exited

non-core

business

Hemas Holdings

Listed on

CSE

Performance Indicator (Rs. Mn)Q3 YTD

2014/15

Q3 YTD

2015/16% Change

Group Revenue 23,640 28,287 19.7%

Operating Profit 2,214 2,785 25.8%

Profit After Tax 1,501 2,036 35.7%

Group Earnings 1,155 1,909 65.2%

Performance IndicatorQ3 YTD

2014/15

Q3 YTD

2015/16% Change

ROE* 11.06% 14.45%

ROCE* 12.88% 14.09%

EPS 2.24 3.33 48.7%

Net Assets per Share 28.69 35.69 24.4%

Share Price (Dec 31) 74.30 93.00

Market Cap Rs. Mn (Dec 31) 38,286 53,247

Consolidated YTD Q3 revenues of 2015/16 was LKR 28 Bn, up

19.7% over the previous year, with Group Earnings up 65.2%

Growth coming primarily from strong performance in Consumer and Healthcare sectors.

Hemas Holdings PLC, Q3 YTD 2015/16

* Annualized based on Q3 results

• HHL recorded solid Q3 YTD performance with consolidated

Group revenue of Rs. 28.3 Bn—a YoY growth of 19.7%.

• Operating profit reached Rs. 2.8Bn and earnings Rs. 1.9Bn,

a growth of 25.6% and 65.2% respectively.

• Good growth recorded by Consumer and Healthcare

sectors of 24% and 18% respectively.

• Eliminating one off transactions in the preceding year and

the additional interest income of Rs.196Mn earned from

investing the proceeds of the rights issue, underlying

operating profit and earnings maintained a healthy growth

of 30.8% and 30.2% respectively.

Segmental Revenue Q3

YTD 2015/16

Consumer

39%

Healthcare

42%

Others

6%

Leisure

8%

Transportation

5%

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Consumer

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Hemas Consumer is Sri Lanka’s largest domestic Personal

Care business, accounting for over 40% Group Revenues

Hair CareOral CareBaby Care

Feminine Hygiene Home CarePersonal Wash

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Hemas entered Bangladesh in 2011, and today we are the

number 2 value-added hair oil brand with Kumarika

• Kumarika hair oil has 15% market share in the value added oil

segment

• We serve 115,000 retail outlets in municipal towns with a further

20,000 in rural locations.

• 3-year average revenue growth has been 262%.

• We operate our own distribution, through a network of 140

distributors and over 100 sub-distributors

• We have a total 280 sales reps operating in 21 territories.

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

YTD

Bangladesh Revenue in Rs. Million

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Market leader in personal care, strong iconic brands with

international relevance

Revenues up more than 24% year on year, driven by robust volume growth in personal wash, feminine

hygiene and home care.

• Portfolio comprises personal care, personal wash andhome care products

• Market leader in baby care, hair oil, and beauty soap

• Island wide distribution with direct coverage of90,000+ stores

• Bangladesh operations poised for accelerated growth

• Introduced new Velvet variant “Honey and Yoghurt”

Sector Highlights

• Consumer sector reported a total revenue of

Rs. 11.2Bn, a 24.4% YoY increase on the previous

financial year

• Sector performance was driven by our Bangladesh

operation, strong sales across all our major brands in

the domestic market and relatively weak commodity

prices for key raw material inputs.

Financial Highlights

Consumer Revenue and Operating Profit

Q3 YTD 2010/11–2015/16

Consumer Revenue Share, YTD FY 2015/16

Consumer

39%Rest of Group

61%

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'-

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700

1,050

1,400

1,750

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3,000

6,000

9,000

12,000

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

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Revenue Operating Profit

Healthcare

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Hemas is the largest healthcare company in Sri Lanka

with interests in Pharma, Hospitals and Diagnostics

Pharmaceutical

Distribution

Rx &

OTC

Pharmaceutical

Manufacturing

Hospitals

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We represent the largest global multinational pharmaceutical

manufacturers

650Employees

35+Principals

9Therapeutic

Categories

22%Market Share 3000+

Pharmacies

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Hemas

Pharmaceuticals

OTC Own Brands

• Lacto Calamine

• Gripe Mixture

• Baby Cough Syrup

• Valmelix Cough Syrup

JLM, acquired in 2013, is a market leading Rx manufacturer

with leading OTC brands

J.L. Morison Son & Jones

33%Sales CAGR

Growth since

acquisition

Rs. 000’ FY 2014 FY 2015 YTD

Revenue 2,638,931 3,025,969 2,730,574

Operating

Profit258,189 324,173 358,606

Earnings 210,757 247,091 281,035


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• Manufacture high quality pharmaceutical and OTC

products

• Import and distribution of internationally renowned

products via our island-wide distribution network

Hemas is the first hospital chain to take high quality private

healthcare to rapidly growing Colombo suburbs

• 3 multi-specialty, ACHSI accredited hospitals built on international standards in

the North of Colombo, East of Colombo and in the Southern Province.

• 36 strong satellite lab network, serves over 500 physicians, addressing a

patient population of 5 million.

• Through our new corporate polyclinic model, we are locating in large working

population environments, with a continued focus on bringing healthcare to the

consumer.

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Wattala 100 beds Thalawathugoda 60 beds Galle 50 beds

Deep experience across healthcare value chain with market

leading positions

• Market leader in the pharmaceutical distributionbusiness, representing more than 25 multinationalpharmaceutical agencies

• Three multi specialty hospitals in Colombo North,Colombo East and Galle with a combined bed capacity of210.

• Yet another novel concept - Hemas Hospitals opened itsfirst wellness centre at Orion City to the 6,000 plusemployee strength, at Colombo’s premier IT park.

Sector Highlights


• Healthcare segment of the Group achieved sales ofRs.11.9Bn, a growth of 18.3%

• Growth of 15% in total Pharma top-line indicatesencouraging performance, during a period of significantregulatory change in the pharmaceutical industry.

• Increased demand for overall and private healthcare inthe country and the growing diagnostic network of theGroup, all three hospitals recorded a growth in revenuemarking a 29.9% YoY.

Healthcare Revenue and Operating Profit

Q3 YTD FY 2010/11–2015/16

Healthcare Revenue Share, YTD FY 2015/16

Healthcare

42%Rest of Group

58%

15

'-

325

650

975

1,300

1,625

'-

3,000

6,000

9,000

12,000

15,000

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

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Transportation

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Travel and

AviationOutboundMaritimeLogistics

• Hemas offers complete passenger

and cargo solutions in Airline

Representation and travel related

services

• Hemas represents airlines

Emirates, Malaysia Airline and

Maldivian and other major airlines.

• Largest GSA operator in passenger

and cargo with a market share of

25% and 20%, respectively

• Grew Emirates airlines from 1 flight

per day to 7 flights per day

• 5th in the travel market

• Integrated portfolio of

container haulage, container

yard operations, warehousing,

automotive logistics and

transportation of project and

over-dimensional cargo.

• 6 acre container terminal.

• Maritime sector acts as a

shipping agent providing

agency services for our feeder

operator.

• Far Shipping Lines (FSL)

Singapore

• Operates the largest feeder

service to the Bay of Bengal

• Award winning, IATA

accredited travel agency.

• Corporate travel service is a

network partner of HRG which

offers global travel services

and hotel reservations.

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Through our transportation arm, we are securing new accounts

and growing capacity in logistics, warehousing and haulage

Transportation 5%

Rest of Group95%

Our Transportation business had YTD 1.3 billion in revenues, a

year-on-year growth of 15%

• Leader in airline representation including GSA’s forEmirates, Malaysia Airlines and China Southern

• Regional GSA representation in Maldives and Thailand

• Exclusive shipping agent for Far Shipping Lines, a leadingregional feeder operator

• Exclusive agent for ‘HC line’ and NVOCC operator ‘AsianTiger Shipping’

• Strategic investments in logistics verticals providingintegrated end to end solutions

Sector Highlights


• Transportation sector revenue of Rs.1.3 Bn reflects a YoYgrowth of 15.2%, stemming from strong performance of ourdomestic maritime and logistics business interests.

• Logistics business grew through new projects, with ourwarehouses operating with full capacity and haulage businessgrowing with the car carrier operation.

• Aviation businesses continued to experience challenges dueto lower yields of ticketing income despite increases involumes.

• Driven by limited revenue growth from aviation transportationsector operating profits declined 6.1% to Rs.271Mn.

Transportation Revenue and Operating Profit

Q3 YTD FY 2010/11–2015/16

Transportation Revenue Share, YTD FY

2015/16

18

'-

85

170

255

340

425

'-

325

650

975

1,300

1,625

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

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g P

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Rs

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Reven

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Leisure

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Our Leisure business comprises leading travel brands and an

inbound leisure business

• Serendib Leisure Group of Hotels which, includes four award winning

properties with a total inventory of 550 rooms.

• The partnership with Minor Hotel Group (MHG) has enabled Serendib

Leisure to be the only Sri Lankan hotel chain to manage an international

brand, “AVANI”.

Coming Soon

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We are investing in Sri Lanka’s tourism boom with a selection of

new builds, targeting the upper star class segment of the market

YTD revenues of LKR 2.2Bn, with around a 9.2% increase year on year.

• Owner and Manager of four properties with acombined room inventory of 410.

• Strategic partnership with Minor Hotel Group, aleading Asian hotel chain.

• During December, opened our newest hotel property,Anantara Peace Haven Tangalle Resort, this propertywill establish a new benchmark for luxury travellers toSri Lanka seeking authentic cultural experiences.

Sector Highlights


• Leisure segment recorded a total revenue of Rs.2.2Bn for the nine months under consideration,registering a 9.2% YoY increase .

• The increase was primarily driven by the healthyoverall occupancy rate of 78%.

• The new hotels first month of operation has beenencouraging.

Leisure Revenue and Operating Profit

Q3 YTD FY 2010/11–2015/16

Leisure Revenue Share, YTD FY 2015/16

Leisure8%

Rest of Group92%

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65

130

195

260

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550

1,100

1,650

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2,750

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

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Sustainability

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Enriching lives through the spirit of Abhimana

• Abhimana’ is our ethos of sustainability that

describes our vision of a sustainable and co-

operative society, of people living and working

together

• Inline with this, we have released our Sustainability

Report providing insight into the Group’s

sustainability philosophy and initiatives in line with

the Global Reporting Initiative G4 guidelines (GRI-

G4) : http://www.hemas.com/reports

• Today, our strategic path is governed not only by

how well we develop growing commercial

opportunities but also by listening to and

responding to the communities of which we are a

part.

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Piyawara

• The Hemas ‘Piyawara’ project focuses on early

childhood care and development, penetrating the

segment by facilitating preschool education for

children aged 3 to 5 years, from marginalised

communities.

• With the mission “to nurture young children with

good care in order to provide a solid foundation of

a life long journey”

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Vision 2020 - To be the best at enriching lives

• Delighting South Asian consumers with our high quality innovative personal care

solutions

• Providing excellent healthcare outcomes for all Sri Lankans

• Outstanding leisure experiences to the emerging traveler

• Driving exceptional mobility solutions for the travel and logistics needs of the nation

• While at all times operating true to Hemas Values and our ethos of Abhimana

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2020

Vision

Thank You

CONFIDENTIALITY AGREEMENT:

Any confidential information discussed in this presentation shall be used by the receiving party exclusively for the purposes

of fulfilling the receiving party’s obligation and for no other purpose except with the consent of the disclosing party

Hemas Investor Relations:

Telephone: +94 11 4 731 731Email: [email protected]: http://www.hemas.com

Hemas Holdings PLC Hemas House, 75, Braybrooke Place, Colombo 2, Sri Lanka

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