Investor Presentation

FY 2015/16

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Contents
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

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Hemas is a Wellness, Leisure and Mobility
Business with LKR 38 billion in revenues
Segmental Revenue and Operating Profits, FY 2015/16
Operating Profit (Rs. Mn) FY 2015/16
Transportation
5% Consumer 1,768
Other
6% Healthcare 1,780
Leisure 255
Leisure Transportation 499
9%
Other (342)
Consumer
38% Total 3,960

2000

Operating Profit in LKR Millions

Healthcare 1500
42%

1000

500

Revenue 0

-500
Consumer Healthcare Leisure Transportation Other

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 History and Milestones

1948 1962 1970s 2003 2007 2011 2013 2014

Founded Entered the Diversified into Hemas Entered the Entry into Acquired J.L Exited
Hemas Consumer travel & Holdings Hospital Bangladesh Morison Son non-core
tourism Listed on business via & Jones
Drugs business business
Acquisition
Ltd. CSE (Ceylon)
PLC

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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
Performance Indicator FY FY consolidated Group of Rs. 38.0 Bn—a YoY growth of
% Change
(Rs. Mn) 2015/16 2014/15 16.9%.
Group Revenue 37,978 32,497 16.9% • Operating profit reached Rs. 4.0 Bn and Earnings Rs.
Operating Profit 3,961 3,371 17.5% 2.7Bn, a growth of 17.5% and 37.7% respectively.

Profit After Tax 2.926 2,196 33.2% • Revenue growth was led by the strong performance of our
Consumer and Healthcare sectors and additional interest
Group Earnings 2.653 1,927 37.7% income from the proceeds of the rights issue boosted
Earnings.

FY FY Segmental Earnings, FY 2015/16

Performance Indicator % Change
2015/16 2014/15
Rs. Millions
ROE 14.1% 12.9% 1,600
ROCE 16.8% 14.7%
1,200
EPS 4.63 3.74 23.9%
Net Assets per Share 38.41 30.39 26.3% 800
Share Price (Mar 31) 80.60 73.70 9.3%
400
Market Cap Rs. Mn (Mar 31) 46,147 37,977 21.5%
0

-400
Consumer Healthcare Leisure Transportation Other

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Consumer

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Hemas Consumer is Sri Lanka’s largest domestic Personal
Care business, accounting for 38% of Group Revenues

Baby Care Oral Care Hair Care

Feminine Hygiene Personal Wash Home Care

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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.

Bangladesh Revenue in Rs. Million

2010/11–2015/16
2,000

1,600

1,200

800

400

0
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

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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.
Sector Highlights Consumer Revenue and Operating Profit
• Portfolio comprises personal care, personal wash and FY 2011/12–2015/16
home care products. Revenue Operating Profit
• Market leader in baby care, hair oil, and beauty soap. 18,000 2,100

Operating Profit - Rs. Million

Revenue - Rs. Million
• Domestic distribution retail coverage of 80,000+. 15,000 1,750

• Introduced new Gel variants of Clogard along with 12,000 1,400

mouth wash product range and Velvet soap variants 9,000 1,050
“Water Lily & Sea Minerals”, “Honey and Yoghurt.”
6,000 700
• Fems, Clogard, Baby Cheramy and Diva brands
posted double digit topline growth rates underpinning 3,000 350
sector revenue growth. '- '-
2011/12 2012/13 2013/14 2014/15 2015/16

Financial Highlights Consumer Revenue Share, FY 2015/16

• 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 Consumer
growth across all our major brands in the domestic Rest of 37.7%
market, with relatively weak commodity prices for key Group
62.3%
raw material inputs.

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Healthcare

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Hemas is the largest healthcare company in Sri Lanka
with interests in Pharmaceuticals, Hospitals and Diagnostics

Rx & Hospitals &

Pharmaceutical OTC Diagnostics
Distribution Pharmaceutical Network
Manufacturing

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In pharmaceutical distribution, Hemas represents the largest
global multinational pharmaceutical manufacturers

22% 3000+
Market Share
Pharmacies

Hemas
Pharmaceuticals

35+
Principals 650
Employees

9
Therapeutic
Categories

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JLM, acquired in 2013, is a market leading Rx manufacturer
with leading OTC brands

• Manufactures over sixty formulations of high quality

J.L. Morison Son & Jones
pharmaceutical and OTC products.
Financial Highlights
• Import and distribution of internationally renowned products via
our island-wide distribution network. Rs. 000’ FY 2014 FY 2015 FY 2016

• JLM signed a five year buy-back agreement with the Government Revenue 2,638,931 3,025,969 3,714,848
of Sri Lanka to provide essential medicines to the National
Operating Profit 258,189 324,173 460,516
Healthcare system.
Earnings 210,757 247,091 351,179
• 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. OTC Own Brands
• Lacto Calamine 33%
• Gripe Mixture Earnings
• Baby Cough Syrup CAGR since
acquisition
• Valmelix Cough Syrup

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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.

Wattala 100 beds Thalawathugoda 60 beds Galle 50 beds

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Deep experience across healthcare value chain with market
leading positions in distribution and diagnostics
Sector Highlights Healthcare Revenue and Operating Profit
FY 2011/12–2015/16
• Hemas Hospitals opened its first wellness centre to
6,000 plus employees at Colombo’s premier IT park, Revenue Operating Profit
Orion City. 18,000 1,950
•

Operating Profit - Rs. Million

Wattala and Southern Hospitals were re-accredited by 15,000 1,625

Revenue - Rs. Million

the ACHSI and Hemas Hospital Thalawathugoda
obtained its 1st accreditation during the year. 12,000 1,300
• Pharmaceutical business grew Rx and OTC portfolio 9,000 975
consistently, adding new principles.
6,000 650
• JLM’s buyback agreement and continued focus on
distribution efficiency contributed to the growth in sales 3,000 325

'- '-
Financial Highlights 2011/12 2012/13 2013/14 2014/15 2015/16

• Healthcare segment of the Group achieved sales of

Healthcare Revenue Share, FY 2015/16
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 Healthcare
seeking behavior growing demand for diagnostics, all Rest of Group 42.5%
three hospitals recorded a revenue growth of 31.9% YoY. 57.5%

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Transportation

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 Through our Mobility arm, we are securing new accounts and
growing capacity in logistics, warehousing and haulage
Travel and
Aviation
• 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
Logistics
• Integrated portfolio of
container haulage, container
yard operations, warehousing,
automotive logistics and
transportation of project and
over-dimensional cargo.
• 6 acre container terminal.
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Maritime Outbound
• Maritime sector acts as a • Award winning, IATA
shipping agent providing accredited travel agency.
agency services for our feeder
operator. • Corporate travel service is a
network partner of HRG which
• Far Shipping Lines (FSL) offers global travel services
Singapore and hotel reservations.
• 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.
 Our Mobility business had LKR 1.8 billion in revenues for FY
2015/16, a year-on-year growth of 17%
Sector Highlights Transportation Revenue and Operating Profit
FY 2011/12–2015/16
• Hemas Maritime appointed General Agents for
Evergreen Marine Corporation Taiwan, one of the Revenue Operating Profit
largest feeder carriers servicing the Port of Colombo. 1,950 595

Operating Profit - Rs. Million

Revenue - Rs. Million
• Strategic investments in logistics verticals providing 1,625 510
integrated end to end solutions 425
1,300
• Good growth in Logistics 3PL business with increased 340
volumes stemming from the container depot which 975
functioned at its optimum level of efficiency. 255
650
170
325 85
Financial Highlights
'- '-
• Transportation sector revenue of Rs.1.8 Bn reflects a 2011/12 2012/13 2013/14 2014/15 2015/16
YoY growth of 17.2%, stemming from strong
performance of our domestic maritime and logistics Transportation Revenue Share, FY 2015/16
business interests.
Transportation
• Logistics business grew through new projects, with our 4.7%
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.
Rest of Group
95.3%

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Leisure

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Our Leisure business comprises leading travel brands and an
inbound leisure business

Coming Soon

• 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”.

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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 3.4Bn, with 13.0% increase year on year.
Sector Highlights Leisure Revenue and Operating Profit
FY 2011/12–2015/16
• Owner and Manager of ffive properties with a combined
Revenue Operating Profit
room inventory of 563.
• Strategic partnership with Minor Hotel Group, a leading 3,850 585

Operating Profit - Rs. Million

Asian hotel chain 3,300 520

Revenue - Rs. Million

455
• During December 2016, we opened our newest hotel 2,750
390
property, Anantara Peace Haven Tangalle Resort, this
property will establish a new benchmark for luxury 2,200 325
travellers to Sri Lanka seeking authentic cultural 1,650 260
experiences. 195
1,100
• The hotels group revenue grew by 12.2% owing to the 130
strong performance of AVANI Bentota and Hotel Sigiriya 550 65
• Diethelm Travels recorded a 21% growth in the inbound '- '-
volume which resulted a 14% growth in the topline. 2011/12 2012/13 2013/14 2014/15 2015/16

Leisure Revenue Share, FY 2015/16

Financial Highlights Leisure
9.0%
• 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 Tangalle
has been encouraging. Rest of Group
91.0%

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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

Vision

2020
• 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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Thank You

Hemas Investor Relations:

Telephone: +94 11 4 731 731 (Ext. 1278)

Email: ir@hemas.com
Web: http://www.hemas.com

Hemas Holdings PLC

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

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.

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