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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
3
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
ns
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 Bna 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%
5
Consumer
6
Hemas Consumer is Sri Lankas 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 ofRs. 11.2Bn, a 24.4% YoY increase on the previous
financial year
Sector performance was driven by our Bangladeshoperation, 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 2010/112015/16
Consumer Revenue Share, YTD FY 2015/16
Consumer
39%Rest of Group
61%
9
'-
350
700
1,050
1,400
1,750
'-
3,000
6,000
9,000
12,000
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
Op
era
tin
g P
rofi
t -
Rs. M
illio
n
Re
ve
nu
e -
Rs
. M
illio
n
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
12
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
Financial Highlights
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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 Colombos premier IT park.
Sector Highlights
Financial 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 2010/112015/16
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
Op
era
tin
g P
rofi
t -
Rs
. M
illio
n
Re
ve
nu
e -
Rs
. M
illio
n
Revenue Operating Profit
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 GSAs 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
Financial 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 2010/112015/16
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
Op
era
tin
g P
rofi
t -
Rs
. M
illio
n
Reven
ue -
Rs. M
illio
n
Revenue Operating Profit
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 Lankas 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
Financial 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 2010/112015/16
Leisure Revenue Share, YTD FY 2015/16
Leisure8%
Rest of Group92%
21
'-
65
130
195
260
325
'-
550
1,100
1,650
2,200
2,750
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
Op
era
tin
g P
rofi
t -
Rs. M
illio
n
Re
ve
nu
e -
Rs
. M
illio
n
Revenue Operating Profit
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 Groups
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 partys 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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