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Investor Presentation FY 2015/16 1

Hemas Holdings PLC investor presentation 2015/16

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Page 1: Hemas Holdings PLC investor presentation 2015/16

Investor PresentationFY 2015/16

1

Page 2: Hemas Holdings PLC investor presentation 2015/16

Contents

2

1 Hemas Business : Revenue and Profitability by Sector

2 History and Milestones

3 Consolidated Group Performance for FY 2015/16

4 Consumer

5 Healthcare

6 Transportation

7 Leisure

8 Sustainability

9 Vision 2020

Page 3: Hemas Holdings PLC investor presentation 2015/16

Hemas is a Wellness, Leisure and Mobility

Business with LKR 38 billion in revenues

3

Revenue

Segmental Revenue and Operating Profits, FY 2015/16

Operating Profit (Rs. Mn) FY 2015/16

Consumer 1,768

Healthcare 1,780

Leisure 255

Transportation 499

Other (342)

Total 3,960Consumer

38%

Healthcare42%

Leisure9%

Transportation 5%

Other6%

-500

0

500

1000

1500

2000

Consumer Healthcare Leisure Transportation Other

Op

era

tin

g P

rofit in

LK

R M

illio

ns

Page 4: Hemas Holdings PLC investor presentation 2015/16

History and Milestones

4

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

Page 5: Hemas Holdings PLC investor presentation 2015/16

Performance Indicator

(Rs. Mn)

FY

2015/16

FY

2014/15% Change

Group Revenue 37,978 32,497 16.9%

Operating Profit 3,961 3,371 17.5%

Profit After Tax 2.926 2,196 33.2%

Group Earnings 2.653 1,927 37.7%

Performance IndicatorFY

2015/16

FY

2014/15% Change

ROE 14.1% 12.9%

ROCE 16.8% 14.7%

EPS 4.63 3.74 23.9%

Net Assets per Share 38.41 30.39 26.3%

Share Price (Mar 31) 80.60 73.70 9.3%

Market Cap Rs. Mn (Mar 31) 46,147 37,977 21.5%

Consolidated revenues for FY 2015/16 was LKR 38 Bn, up

16.9% over the previous year, with Group Earnings up 37.7%

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

Hemas Holdings PLC, FY 2015/16

• HHL recorded solid performance for FY 2015/16 with

consolidated Group of Rs. 38.0 Bn—a YoY growth of

16.9%.

• Operating profit reached Rs. 4.0 Bn and Earnings Rs.

2.7Bn, a growth of 17.5% and 37.7% respectively.

• Revenue growth was led by the strong performance of our

Consumer and Healthcare sectors and additional interest

income from the proceeds of the rights issue boosted

Earnings.

Segmental Earnings, FY 2015/16

5

-400

0

400

800

1,200

1,600

Consumer Healthcare Leisure Transportation Other

Rs. Millions

Page 6: Hemas Holdings PLC investor presentation 2015/16

Consumer

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Page 7: Hemas Holdings PLC investor presentation 2015/16

Hemas Consumer is Sri Lanka’s largest domestic Personal

Care business, accounting for 38% of Group Revenues

Hair CareOral CareBaby Care

Feminine Hygiene Home CarePersonal Wash

7

Page 8: Hemas Holdings PLC investor presentation 2015/16

Hemas entered Bangladesh in 2011, and today we are the

number two value-added hair oil brand with Kumarika

• Kumarika hair oil has 16% market share in the value added oil segment,

with 3-year revenue CAGR of 90%.

• 115,000 urban and rural retail outlets reached; distribution reach grown

15% annually.

• Operate own distribution, through a network of 140 distributors and over

100 sub-distributors.

• 280 sales reps operating in 21 territories.

• New product launched under “Kumarika” brand platform: two variants of

a science + nature face wash.

0

400

800

1,200

1,600

2,000

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

Bangladesh Revenue in Rs. Million2010/11–2015/16

8

Page 9: Hemas Holdings PLC investor presentation 2015/16

Market leader in personal care, strong iconic brands with

international relevance

Revenues up by 20% YoY, driven by robust volume growth in personal wash, feminine hygiene and home care.

• Portfolio comprises personal care, personal wash and home care products.

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

• Domestic distribution retail coverage of 80,000+.

• Introduced new Gel variants of Clogard along with mouth wash product range and Velvet soap variants “Water Lily & Sea Minerals”, “Honey and Yoghurt.”

• Fems, Clogard, Baby Cheramy and Diva brands posted double digit topline growth rates underpinning sector revenue growth.

Sector Highlights

• Consumer sector reported a total revenue of

Rs. 14.3Bn, a 20.2% YoY growth.

• Sector performance was driven by strong

performance of Bangladesh operation and sales

growth across all our major brands in the domestic

market, with relatively weak commodity prices for key

raw material inputs.

Financial Highlights

Consumer Revenue and Operating Profit

FY 2011/12–2015/16

Consumer Revenue Share, FY 2015/16

9

'-

350

700

1,050

1,400

1,750

2,100

'-

3,000

6,000

9,000

12,000

15,000

18,000

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

Op

era

tin

g P

rofi

t -

Rs

. M

illi

on

Re

ve

nu

e -

Rs

. M

illio

n

Revenue Operating Profit

Consumer37.7%Rest of

Group62.3%

Page 10: Hemas Holdings PLC investor presentation 2015/16

Healthcare

10

Page 11: Hemas Holdings PLC investor presentation 2015/16

Hemas is the largest healthcare company in Sri Lanka

with interests in Pharmaceuticals, Hospitals and Diagnostics

Pharmaceutical

Distribution

Rx &

OTC

Pharmaceutical

Manufacturing

Hospitals &

Diagnostics

Network

11

Page 12: Hemas Holdings PLC investor presentation 2015/16

In pharmaceutical distribution, Hemas represents the largest

global multinational pharmaceutical manufacturers

650Employees

35+Principals

9Therapeutic

Categories

22%Market Share 3000+

Pharmacies

12

Hemas

Pharmaceuticals

Page 13: Hemas Holdings PLC investor presentation 2015/16

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%Earnings

CAGR since

acquisition

Rs. 000’ FY 2014 FY 2015 FY 2016

Revenue 2,638,931 3,025,969 3,714,848

Operating Profit 258,189 324,173 460,516

Earnings 210,757 247,091 351,179

Financial Highlights

13

• Manufactures over sixty formulations of high quality

pharmaceutical and OTC products.

• Import and distribution of internationally renowned products via

our island-wide distribution network.

• JLM signed a five year buy-back agreement with the Government

of Sri Lanka to provide essential medicines to the National

Healthcare system.

• JLM revenue and earnings for the year grew by 22.8% and

43.4% respectively supported by the growth of core segments,

improved efficiency and capacity gains at plant, and the strength

of a newly restructured distribution network.

Page 14: Hemas Holdings PLC investor presentation 2015/16

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.

• 3 additional laboratories opened this year; bring network up to 36

laboratories, serving over 500 physicians and 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

Page 15: Hemas Holdings PLC investor presentation 2015/16

Healthcare42.5%Rest of Group

57.5%

Deep experience across healthcare value chain with market

leading positions in distribution and diagnostics

Sector Highlights

Financial Highlights

• Healthcare segment of the Group achieved sales of Rs.16.1Bn, a growth of 16.0%.

• 8% growth in Pharma distribution revenues indicates encouraging performance, during a period of significant regulatory change in the pharmaceutical industry.

• Increased demand for private healthcare and health seeking behavior growing demand for diagnostics, all three hospitals recorded a revenue growth of 31.9% YoY.

Healthcare Revenue and Operating Profit

FY 2011/12–2015/16

Healthcare Revenue Share, FY 2015/16

15

'-

325

650

975

1,300

1,625

1,950

'-

3,000

6,000

9,000

12,000

15,000

18,000

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

Op

era

tin

g P

rofi

t -

Rs

. M

illi

on

Reve

nu

e -

Rs

. M

illi

on

Revenue Operating Profit• Hemas Hospitals opened its first wellness centre to

6,000 plus employees at Colombo’s premier IT park, Orion City.

• Wattala and Southern Hospitals were re-accredited by the ACHSI and Hemas Hospital Thalawathugodaobtained its 1st accreditation during the year.

• Pharmaceutical business grew Rx and OTC portfolio consistently, adding new principles.

• JLM’s buyback agreement and continued focus on distribution efficiency contributed to the growth in sales

Page 16: Hemas Holdings PLC investor presentation 2015/16

Transportation

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Page 17: Hemas Holdings PLC investor presentation 2015/16

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

• Exclusive agent for ‘HC line’

and NVOCC operator ‘Asian

Tiger Shipping’

• Appointed General Agents for

Evergreen, the fourth largest

mainliner with revenues of

US$ 4 Bn.

• 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 Mobility arm, we are securing new accounts and

growing capacity in logistics, warehousing and haulage

Page 18: Hemas Holdings PLC investor presentation 2015/16

Transportation4.7%

Rest of Group95.3%

Our Mobility business had LKR 1.8 billion in revenues for FY

2015/16, a year-on-year growth of 17%

Sector Highlights

Financial Highlights

• Transportation sector revenue of Rs.1.8 Bn reflects a YoY growth of 17.2%, stemming from strong performance of our domestic maritime and logistics business interests.

• Logistics business grew through new projects, with our warehouses operating with full capacity and haulage business growing with the car carrier operation.

• Aviation businesses continued to experience challenges due to lower yields of ticketing income.

• Operating profits grew at a slower rate of 8.2% when compared to the revenue growth rate, due to limited growth reflected in aviation.

Transportation Revenue and Operating Profit

FY 2011/12–2015/16

Transportation Revenue Share, FY 2015/16

18

'-

85

170

255

340

425

510

595

'-

325

650

975

1,300

1,625

1,950

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

Op

era

tin

g P

rofi

t -

Rs

. M

illi

on

Re

ve

nu

e -

Rs

. M

illio

n

Revenue Operating Profit• Hemas Maritime appointed General Agents for

Evergreen Marine Corporation Taiwan, one of thelargest feeder carriers servicing the Port of Colombo.

• Strategic investments in logistics verticals providing integrated end to end solutions

• Good growth in Logistics 3PL business with increased volumes stemming from the container depot which functioned at its optimum level of efficiency.

Page 19: Hemas Holdings PLC investor presentation 2015/16

Leisure

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Page 20: Hemas Holdings PLC investor presentation 2015/16

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

20

Page 21: Hemas Holdings PLC investor presentation 2015/16

Leisure9.0%

Rest of Group91.0%

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 3.4Bn, with 13.0% increase year on year.

• Owner and Manager of ffive properties with a combined room inventory of 563.

• Strategic partnership with Minor Hotel Group, a leading Asian hotel chain

• During December 2016, we opened our newest hotel property, Anantara Peace Haven Tangalle Resort, this property will establish a new benchmark for luxury travellers to Sri Lanka seeking authentic cultural experiences.

• The hotels group revenue grew by 12.2% owing to the strong performance of AVANI Bentota and Hotel Sigiriya

• Diethelm Travels recorded a 21% growth in the inbound volume which resulted a 14% growth in the topline.

Sector Highlights

Financial Highlights

• Leisure segment recorded a total revenue of Rs. 3.4Bn for FY 2015/16, registering a 13.0% YoY increase.

• The increase was primarily driven by a good overall occupancy rate of 79%.

• The first few months of the new hotel Anantara Tangallehas been encouraging.

Leisure Revenue and Operating Profit

FY 2011/12–2015/16

Leisure Revenue Share, FY 2015/16

21

'-

65

130

195

260

325

390

455

520

585

'-

550

1,100

1,650

2,200

2,750

3,300

3,850

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

Op

era

tin

g P

rofi

t -

Rs

. M

illi

on

Reve

nu

e -

Rs

. M

illi

on

Revenue Operating Profit

Page 22: Hemas Holdings PLC investor presentation 2015/16

Sustainability

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Page 23: Hemas Holdings PLC investor presentation 2015/16

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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Page 24: Hemas Holdings PLC investor presentation 2015/16

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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Page 25: Hemas Holdings PLC investor presentation 2015/16

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

25

2020

Vision

Page 26: Hemas Holdings PLC investor presentation 2015/16

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 4 731 731 (Ext. 1278)Email: [email protected]: http://www.hemas.com

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

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