Hemas Holdings PLC Investor Presentation Q3 - 2013/14

1. HEMAS HOLDINGS PLC
Investor Presentation
Q3 2013/14

2. Hemas Group: A Snapshot
Share Price (As at 20.02.2014)
: Rs. 37.50
Market Capitalization
:
Rs. 19.3Bn
% of Total Market
:
0.82%
PER
:
9.84*
PBV
:
1.48
No of Shares
:
515Mn
Public Shareholding
:
28.73%
* PER based on annualized YTD Q3 earnings
Sector & Market PER vs Hemas PER
30.0
25.0
20.0
Diversified Sector PER
Market PER
15.0
Hemas PER
10.0
5.0
Sept 2012 Dec 2012 Mar 2013 Jun 2013 Sept 2013 Dec 2013

3. Hemas Group: Performance Highlights
Figures are in Rs. Mn
YTD Q3
2013/14
YTD Q3
2012/13
Group Turnover
23,665
19,312
23%
Operating Profit
2,281
1,651
38%
Group Earnings
1,473
1,067
38%
Cash from Operations
2,279
375
507%
Figures are in Rs. Mn
YTD Q3
2013/14
31 March
2013
Total Assets
32,210
26,008
24%
Net Current Assets
4,160
4,156
0.1%
Shareholders’ Funds
13,084
12,153
8%
Capital Employed
23,754
19,339
23%
YTD Q3
2013/14
YTD Q3
2012/13
EPS*
3.81
2.76
38%
Net Assets per Share
25.39
21.62
17%
ROE*
16.2%
13.8%
ROCE*
14.5%
13.1%
% Change
% Change
% Change
* Annualized based on YTD Q3 results

4. Group Revenue Growth Exceeds 20%
Rs.Mn
25,000
Group Revenue
30%
25%
20,000
20%
15%
15,000
10%
10,000
5%
0%
5,000
-5%
0
-10%
YTD Q3 2009/10 YTD Q3 2010/11 YTD Q3 2011/12 YTD Q3 2012/13 YTD Q3 2013/14
Revenue
•
•
•
Growth
Group Revenue for the period ending 31st December 2013 was
recorded at Rs. 23.6 Bn, a growth of 23%
Revenue growth was driven by the Healthcare, FMCG and
Transportation sectors
New acquisitions, J.L Morison and Panasian power contributed Rs.
1,495Mn and Rs. 175Mn to Group Revenue respectively

5. Underlying Earnings Grow by 19%
Group Earnings
Rs.Mn
1,600
70%
1,400
60%
1,200
50%
40%
1,000
30%
800
20%
600
10%
400
0%
200
-10%
0
-20%
YTD Q3 2009/10
YTD Q3 2010/11
YTD Q3 2011/12
Earnings
•
•
•
YTD Q3 2012/13
YTD Q3 2013/14
Growth
Group Earnings for the period ending 31st December 2013 was
reported at Rs. 1,473Mn, a growth of 38%
Earnings growth was primarily driven by the capital gain of Rs. 375Mn
recognized during the last quarter
The underlying earnings growth adjusted for the capital gain, hotels
closure and startup losses of Thalawathugoda hospital was 18.5%

6. Revenue and Earnings Composition
Revenue Composition
Other, 5%
Earnings Composition
FMCG, 31%
Power, 13%
FMCG, 38%
Power, 19%
Transporta
tion, 18%
Transportati
on, 5%
Leisure, 2%
Leisure, 4%
Healthcare,
37%
Healthcare
, 29%
“Other” segment – (7%)

7. FMCG, Focused on Innovation
YTD Q3
2013/14
Turnover (Rs.Mn)
YTD Q3
% Change
2012/13
7,237
5,706
27%
607
567
7%
PAT (Rs.Mn)
YTD Q3 Revenue and PAT
Rs.Mn
•
•
Rs.Mn
8,000
700
7,000
600
6,000
500
•
5,000
400
4,000
•
300
3,000
2,000
200
1,000
100
0
0
2009/10
2010/11
2011/12
Revenue
2012/13
PAT
2013/14
•
FMCG sector posted a revenue of
Rs. 7.2 Bn, a growth of 27%
Revenue growth was led by the
strong performance of personal
wash and personal care
categories
Sector operating profits grew by
24% led by growth in volumes
Profit after tax growth was
impacted by the increased tax
burden due to expiration of the
tax holiday
Dandex, Diva and PRO were relaunched during the quarter
enhancing the customer appeal

8. Hemas Pharma Outperforms Market
•
YTD Q3
2013/14
PAT (Rs.Mn)
% Change
8,822
6,662
32%
417
Turnover (Rs.Mn)
YTD Q3
2012/13
355
17%
YTD Q3 Revenue and PAT
Rs.Mn
•
500
8,000
300
4,000
200
2,000
•
400
6,000
100
0
•
0
2009/10
2010/11
2011/12
Revenue
2012/13
PAT
2013/14
Hemas Pharmaceuticals
reinforced its market leadership
with an increased share of 19.2%
(Source: IMS)
Rs.Mn
10,000
Healthcare sector revenue was
Rs. 8.8Bn with a growth of
32%, driven by the
Pharmaceuticals revenue which
grew by 19%
•
The business acquired a 35,000
sqft. modern warehouse at
Elakanda, Wattala to expand the
storage capacity
Hospitals revenue experienced a
growth of 29%, boosted with the
revenue from our new
hospital, Thalawathugoda
Healthcare sector profits were
impacted by the startup losses of
the new hospital

9. Hotels Geared up for the Winter
YTD Q3 YTD Q3
% Change
2013/14 2012/13
Turnover (Rs.Mn)
891
1,082
-18%
PAT (Rs.Mn)
20
207
-90%
YTD Q3 Revenue and PAT
Rs.Mn
1,200
Rs.Mn
250
1,000
200
800
100
400
50
200
0
•
150
600
•
0
•
•
-50
2009/10
2010/11 2011/12
Revenue
2012/13
PAT
2013/14
•
Club Hotel Dolphin was re-opened
after the refurbishment on 1st
November 2013 and enjoys
occupancy levels over 80%
Leisure Sector revenue was
negatively impacted during the 1st
two quarters of the year due to the
closure of the two key hotels for
refurbishment
All our four hotels received the
‘Travelife GOLD’ certification in
recognition of the highest level of
commitment towards sustainable
tourism practices
Avani Kalutara was awarded as the
‘Top Hotel 2014’ by Holiday check
travel site
All our hotels are geared up to
close the year on a stronger note

10. Container Yard Begins Operations
YTD Q3 YTD Q3
% Change
2013/14 2012/13
Turnover (Rs.Mn)
1,080
216
•
45%
289
PAT (Rs.Mn)
747
•
34%
•
Revenue and PAT
Rs.Mn
Rs.Mn
1,200
350
1,000
300
250
800
•
200
600
150
400
100
200
•
50
0
0
2009/10
2010/11
2011/12
Revenue
2012/13
PAT
2013/14
•
Transportation sector revenue
surpassed Rs. 1Bn mark posting
an impressive growth of 45%
Revenue growth was driven by
the logistics and the aviation
segments
Maritime segment was
positively impacted by the
growth in transshipment
volumes
Sector operating profits grew by
25% to record at Rs. 335Mn
Hemas Logistics declared open
its first container yard at
Welisara in November
The container yard can store and
service over 3000 TEUs at any
time using state-of-the-art
container handlers

11. Healthy 9 Months for Hydro Power
YTD Q3 YTD Q3
% Change
2013/14 2012/13
Turnover (Rs.Mn)
PAT (Rs.Mn)
4,416
4,395
0.5%
358
212
69%
YTD Q3 Revenue and PAT
Rs.Mn
•
•
Rs.Mn
5,000
400
350
4,000
300
•
250
3,000
200
2,000
150
•
100
1,000
50
0
0
2009/10
2010/11 2011/12
Revenue
2012/13
PAT
2013/14
•
Power sector revenue growth
was hindered by the thermal
power generation curtailment
imposed by the CEB
Hydro power segment enjoyed a
healthy period with increased
rainfall in catchment areas and
the increase in avoided-costtariff
Hydro power revenue (excluding
Panasian Power) grew by an
impressive 89%
Panasian Power contributed Rs.
175Mn to the sector revenue
Sector operating profits grew by
56% to record Rs. 433Mn, for
which Panasian Power
contributed Rs. 129Mn

12. J.L Morison PAT Improves by 25%
YTD Q3 YTD Q3
% Change
2013/14 2012/13
Turnover (Rs.Mn)
1,905
-12%
144
PAT (Rs.Mn)
2,163
115
25%
YTD Q3 Revenue and PAT
Rs.Mn
•
Rs.Mn
2,500
250
2,000
200
1,500
150
1,000
•
100
500
•
50
0
0
2009/10
2010/11
2011/12
Revenue
2012/13
PAT
2013/14
•
J.L Morison recorded a revenue
of Rs. 1.9Bn for the 9 months
with the revenue of
Pharmaceuticals and Agro
segments growing by 15% and
14% respectively
Operating profit and profit after
tax improved by 23% and 25%
respectively despite the drop in
overall revenue
Profit growth was largely driven
by the pharmaceuticals segment
of which operating profit grew
by 33%
J.L Morison contributed 6% to
the Group revenue and 8% to
Group profit after tax

13. Corporate Social Responsibility
•
•
•
“Piyawara” brand ambassador, Mr. Roshan
Mahanama came forward to build the 39th
Piyawara community pre-school with his
personal funds, in Veheratenna, south of
Mullathivu
Christmas gifts were collected from the Hemas
staff and were distributed among children in
Malhawa, Bibile and Veheratanna, a resettled
village in Welioya
“Ape Sihiniya”, an exhibition to showcase the
paintings and handicrafts of differently abled
children from Hambantota Piyawara school was
held at Hemas House on 9th and 10th of January
2014

14. In Our Efforts of Going Green…
•
•
•
•
The environmental club of J.L
Morison, “Thuruliya Committee” greeted the
new year by planting Mahogani trees in their
premises
The top management of Hemas appreciated
and rewarded the staff at Dankotuwa Factory
for maintaining over 3,500 plants of
jak, mahagony, kohomba and maadang
Hemas Green club embarked on a pilot project
to produce compost with food waste at Hemas
House canteen
The club also organized a lecture by Mr. Srilal
Mittapala, a well-known wildlife activist in Sri
Lanka, on Udawalawe’s iconic tusker “The
Walawe Raja” on 6th December 2013

15. Hemas Investor Relations:
Telephone: +94 11 4 731 731
Email: ir@hemas.com
Web: http://www.hemas.com
Hemas Holdings PLC
Hemas House, 75, Braybrooke Place, Colombo 2, Sri Lanka