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Investor Presentation For the Nine Months ending December 31, 2015 1

Hemas Holdings PLC Investor Presentation Q3 - 2015/16

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Text of Hemas Holdings PLC Investor Presentation Q3 - 2015/16

  • Investor PresentationFor the Nine Months ending December 31, 2015

    1

  • Table of Contents

    2

    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

    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

  • 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

    7

  • 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

    8

  • 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

    10

  • Hemas is the largest healthcare company in Sri Lanka

    with interests in Pharma, Hospitals and Diagnostics

    Pharmaceutical

    Distribution

    Rx &

    OTC

    Pharmaceutical

    Manufacturing

    Hospitals

    11

  • 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

    13

    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.

    14

    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

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    e -

    Rs

    . M

    illio

    n

    Revenue Operating Profit

  • Transportation

    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

    Award winning, IATA

    accredited travel agency.

    Corporate travel service is a

    network partner of HRG which

    offers global travel services

    and hotel reservations.

    17

    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

    19

  • 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

  • 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

    22

  • 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.

    23

  • 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

    24

  • 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

  • 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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