Hemas Group Turnover for 1st half up by 15%

1. HEMAS HOLDINGS PLC
Investor Presentation
1H 2013/14

2. Macro Highlights
Economic Growth
12 M T-Bill Rate
13.0%
Economic
growth
increases
to 6.8%
11.7%
6.4%
6.8%
6.4%
10.7%
10.6%
6.0%
10.0%
4.8%
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Sept 2012
Dec 2012
Exchange Rate
Exchange
rate
hovers
around
Rs.132/$
11.4%
132.08
128.82
Sept 2012
Dec 2012
Sources: Department of Census and Statistics, CBSL
Oct 2013
Inflation
133.62
131.17
Mar 2013 June 2013 Sept 2013
132.67
9.1%
9.2%
7.5%
128.47
Mar 2013
Interest
rates on a
decreasing
trend
6.8%
Jun 2013
Sept 2013
Oct 2013
Sept 2012
Dec 2012
Mar 2013
Jun 2013
6.2%
Sept 2013
6.7%
Oct 2013
YoY
inflation
increases
to 6.7%

3. Hemas Group: A Snapshot
Sector & Market PER vs Hemas PER
Share Price (As at 18.11.2013)
:
Rs. 32.60
30.0
Market Capitalization
:
Rs. 16.7Bn
25.0
% of Total Market
:
0.73%
20.0
PER
:
8.53*
15.0
PBV
:
1.31
10.0
No of Shares
:
515Mn
5.0
Public Shareholding
:
28.72%
-
* PER based on annualized 1H earnings
Jun 2012
Sept 2012 Dec 2012 Mar 2013
Diversified Sector PER
Jun 2013
Market PER
Sept 2013
Hemas PER

4. Hemas Group: 1H Performance Highlights
1H 2013/14
31st March 2013
Total Assets
31,315
26,008
20%
42%
Net Current Assets
4,103
4,156
-1%
722
36%
Shareholders’ Funds
12,849
12,153
6%
45
1901%
Capital Employed
23,123
19,339
20%
1H 2013/14
1H 2012/13
Group Turnover
14,889
12,920
15%
Operating Profit
1,490
1,052
Group Earnings
984
Cash from Operations
901
Figures are in Rs. Mn
% Change
Figures are in Rs. Mn
1H 2013/14
EPS*
3.82
2.80
36%
Net Assets per Share
24.94
21.24
17%
ROE*
16.5%
14.2%
ROCE*
* Annualized based on 1H results
1H 2012/13
% Change
14.6%
12.9%
% Change

5. Hemas Group: 1H Revenue
Rs.Mn
16,000
35%
14,000
30%
25%
12,000
20%
10,000
15%
8,000
10%
6,000
5%
4,000
0%
2,000
-5%
0
-10%
1H 2008/09
1H 2009/10
1H 2010/11
Revenue
1H 2011/12
Growth
1H 2012/13
1H 2013/14
• Group Turnover for 1H 2013
was Rs. 14.9Bn; a growth of 15%
• Healthcare, FMCG and
Transportation sectors were the
main contributors to revenue
growth
• New acquisitions, J.L Morison
and Panasian Power contributed
Rs. 862Mn and Rs. 115Mn to
Group revenue

6. Hemas Group: 1H Earnings
• Group earnings were Rs. 984Mn for
1H 2013; a growth of 36%
Rs.Mn
1,200
100%
80%
1,000
60%
800
40%
600
20%
400
0%
200
-20%
0
-40%
1H 2008/09
1H 2009/10
1H 2010/11
1H Earnings
1H 2011/12
Growth
1H 2012/13
1H 2013/14
• Growth in earnings was led by the
capital gain realized on transferring
part of our property at Tangalle to a
JV with Minor, to build a luxury
resort
• Startup losses of our new hospital
and the hotel closure for
refurbishment negatively impacted
earnings, while Power, FMCG and
Transportation sectors contributed
positively
• Underlying operating profit and
earnings growth, adjusted for one off
factors stood at 32.6% and
10.7%, respectively

7. Earnings Per Share & Return on Equity
Shareholders' Funds and ROE
EPS and EPS Growth
Rs.Mn
Rs.
4.50
50%
4.00
40%
3.50
30%
3.00
20%
10,000
2.50
10%
8,000
10.0%
2.00
0%
6,000
8.0%
1.50
-10%
14,000
18.0%
16.0%
12,000
14.0%
12.0%
6.0%
4,000
1.00
-20%
0.50
-30%
2,000
0.00
-40%
0
2008/09
2009/10
2010/11
EPS
* 2013/14 is based on annualized 1H earnings
2011/12
EPS Growth
2012/13
2013/14 *
4.0%
2.0%
0.0%
2008/09
2009/10
2010/11
2011/12
Shareholders' Funds
2012/13
ROE
2013/14 *

8. Hemas Group: Our Portfolio
Wellness
FMCG
Hospitals
Pharma
JLM
Leisure
Infrastructure
Hotels
Transportation
Outbound
Travel
Power

9. FMCG: Industry Highlights
Total FMCG market ~ Rs.133Bn
Sales Value Growth%
( MAT Aug 2013 Vs. MAT Aug 2012)
(MAT Aug 2013)
All Island
OTC
PRODUCTS,
2%
All Island (R) All Island (U)
3.5
1.0
Food & Beverages
1.7
3.2
-1.0
Household Care
HOUSEHOL
D CARE, 13%
2.6
1.5
2.2
0.1
Personal Care
PERSONAL
CARE, 22%
FMCG-All
5.4
4.7
6.6
• Growth of the total FMCG market is below the rate of
inflation
FOOD &
BEVERAGES,
63%
• Personal care grows faster than household care and
food & beverage segments
• Growth in personal care largely driven by increases
in price
Source: Nielsen Retail Audit Data for 40 Categories tracked in General Trade, excluding Soft Drinks

10. Hemas FMCG outperforms market growth
Key Statistics
1H 2012/13
Turnover (Rs.Mn)
: 4,715
Profit After Tax (Rs.Mn)
: 406
• The operating profit of the sector improved by 24% due
to favorable input prices
Revenue contribution to the Group : 32%
PAT Contribution to the Group
Rs.Mn
: 42%
Revenue and PAT
• Expiration of the tax holiday resulted in increased tax
expenses saddling sector PAT
Rs.Mn
5,000
500
4,000
400
3,000
300
2,000
200
1,000
100
0
0
1H 2009/10 1H 2010/11 1H 2011/12 1H 2012/13 1H 2013/14
Revenue
PAT
• FMCG sector recorded an impressive growth in
turnover of 27%, driven by Clogard, Diva detergent
powder and Velvet beauty soap
• Clogard experienced a notable topline growth for the
period and was re-launched as an ‘Anti-cavity
Toothpaste’ in September
• Velvet soap re-launched during the quarter introducing
two new variants, Kohomba and Aloe
• Gold cologne was re-launched with the intention of
contemporizing the brand

11. Healthcare: Industry Highlights
Healthcare Industry
Pharmaceutical Industry
• Healthcare industry is expected to reach Rs.
282Bn in 2013 (Source: BMI)
• Size of the total private pharmaceutical market is
~ Rs 29Bn (MAT Q2 2013) (Source: IMS)
• The total number of private hospital beds is
estimated to have risen by 70% to ~ 4,700 beds
in the last 7 years (Source: RAM Ratings)
• The private pharmaceutical market grew by 6.8%
YoY(Source: IMS)
Revenue split among leading hospitals
based on Q2, 2012/13 financials
Hemas, 8%
Lanka, 18%
Nawaloka, 20
%
Asiri, 35%
Durdans, 19%
• The local pharmaceutical industry has grown at a
CAGR of ~ 15% over the past 5 years (Source: The
Sunday Leader, 30.10.2013)
• Chronic care, cardiovascular and anti-diabetics
are expected to be areas of growth over the next
few years (Source: www.biospectrumasia.com)

12. Thalawathugoda, a promising start
Key Statistics
1H 2012/13
Turnover (Rs.Mn)
Profit After Tax (Rs.Mn)
• Sector posted a revenue growth of 29%, driven by the
sales volume growth of the Pharmaceutical business
: 5,751
: 235
• Pharmaceutical business and Hospitals recorded a
revenue growth of 18% and 25%, respectively
Revenue contribution to the Group : 39%
PAT Contribution to the Group
Rs.Mn
Revenue and PAT
: 24%
Rs.Mn
7,000
300
6,000
250
• Hemas Pharmaceuticals reinforced its market
leadership with a market share of 18.6% (Source: IMS)
5,000
200
4,000
150
3,000
100
2,000
50
1,000
0
0
1H 2009/10 1H 2010/11 1H 2011/12 1H 2012/13 1H 2013/14
Revenue
PAT
• Our new hospital, Thalawathugoda experienced a
steady pick up in volumes and continues to gain
acceptance among the local community
• Healthcare sector profits were dampened by the startup
losses of the new hospital

13. JLM Performance driven by Healthcare
Key Statistics
1H 2012/13
Turnover (Rs.Mn)
: 1,273
Profit After Tax (Rs.Mn)
: 80
• Healthcare segment accounted for 51% of the
revenue, while Consumer and Agro segments
contributed 36% and 13%, respectively
Revenue contribution to the Group * : 6%
PAT Contribution to the Group *
: 7%
* Revenue & PAT contribution are based on the post acquisition results
Rs.Mn
Revenue and PAT
• J.L Morison’s revenue marginally dropped to Rs. 1.3Bn;
a decline of 6% due to the loss of two agencies
Rs.Mn
1,500
100
1,250
80
• Despite the drop in revenue, operating profit and PAT
for the period increased by 14% and 22%, respectively
1,000
60
750
40
500
20
250
0
• Healthcare segment enjoyed a healthy 1st first half
backed by the strong performance in diagnostics and
pharmaceutical manufacturing businesses
• Agro segment revenue dropped due to the delay in the
monsoons, but is expected to pickup during the 2nd half
0
1H 2009/10 1H 2010/11 1H 2011/12 1H 2012/13 1H 2013/14
Revenue
PAT
Post acquisition results of JLM are consolidated into FMCG, Healthcare and Other segments

14. Hemas Group: Our Portfolio
Wellness
FMCG
Hospitals
Pharma
JLM
Leisure
Infrastructure
Hotels
Transportation
Outbound
Travel
Power

15. Leisure: Industry Highlights
Tourist Arrivals
120,000
30%
100,000
25%
80,000
20%
60,000
15%
40,000
10%
20,000
5%
-
0%
Jan
Feb Mar Apr May Jun
2012
2013
Jul
Aug Sept
Growth
Top 10 countries of tourist arrivals
Japan
U.S.A.
China(P.R.)
Australia
Maldives
Middle East
France
Germany
U.K.
India
Source: SLTDA -
Jan-Sept 2013
• Year to date tourist arrivals for the first 9 months of
2013 posted a growth of 15%, over last year
• Cumulative earnings from tourism for first 9 months of
2013 was recorded at US$ 883, a growth of 24.2%
• A growing demand is portrayed from Indian emerging
middle class travel enthusiasts to visit Sri Lanka: Indian
arrivals up by 30% during the first 9 months of the year
• 'Times of Oman' recommended Sri Lanka as the top Eid
Holiday Destination for Omani residents
• The Commonwealth Heads of Government Meeting
(CHOGM) was a great boost for the city hotels and is
expected to create a positive impact for the destination
20,000 40,000 60,000 80,000 100,000 120,000 140,000

16. Hotels closure drags sector profits
Key Statistics
1H 2012/13
Turnover (Rs.Mn)
: 452
Profit After Tax (Rs.Mn)
: -173
• Despite the shortage of the total room inventory, our
hotels recorded occupancy levels in excess of 50%
during the off-peak season
Revenue contribution to the Group : 3%
PAT Contribution to the Group
Rs.Mn
700
: -18%
Revenue and PAT
Rs.Mn
150
600
100
500
50
400
0
300
-50
200
-100
100
-150
0
-200
1H 2009/10 1H 2010/11 1H 2011/12 1H 2012/13 1H 2013/14
Revenue
PAT
• Leisure sector posted a drop in both revenue and
profits during the period due to the closure of Club
Hotel Dolphin and Hotel Sigiriya for refurbishment
• Hotel Sigiriya was reopened after renovations on 1st
August 2013, while Club Hotel Dolphin was opened to
guests on 1st November 2013
• Continuous improvements to our web booking engine
and several accolades from leading online travel agents
have contributed significantly in tapping new markets
• Sector looks forward to an exciting winter season with
the newly refurbished hotels focused on enriching the
customer experience

17. Hemas Group: Our Portfolio
Wellness
FMCG
Hospitals
Pharma
JLM
Leisure
Infrastructure
Hotels
Transportation
Outbound
Travel
Power

18. Transportation: Industry Highlights
Metric
Tonnes
Air Cargo Volumes
8,000
14%
12%
6,000
• The second international airport in Mattala is expected
to be an opportunity in improving the commercial
aviation landscape of Sri Lanka
10%
8%
4,000
6%
4%
2,000
2%
0
0%
Apr
TEUs
May
2012
June
2013
July
Aug
Sept
YoY YTD Growth
Source: Sri Lankan Cargo
Port of Colombo - Transshipments
300,000
• The second phase is expected to improve the new
airport to handle 5Mn passengers and 150,000MT of
cargo
• The new South Port of Colombo, located mid-way on
the east-west sea route commenced operations in
August 2013
• The facilities of the new port will make it the only port
in South Asia with a deep water terminal for mega
container ships
250,000
200,000
150,000
100,000
50,000
Jan
Feb
Mar
2012
Apr
2013
May
June
July
Source: Port Statistics
• These developments will play a significant role in
connecting South Asia with the rest of the world
supporting the transshipment and logistics services

19. Aviation and Logistics drive performance
Key Statistics
1H 2012/13
Turnover (Rs.Mn)
: 685
Profit After Tax (Rs.Mn)
: 193
• Performance of the Aviation segment was backed by
increased passenger and cargo volumes
Revenue contribution to the Group : 5%
PAT Contribution to the Group
Rs.Mn
: 20%
Revenue and PAT
800
• Hemas Travels further increased their market share
among the top travel agencies
Rs.Mn
240
700
200
600
160
500
400
120
300
80
200
40
100
0
0
1H 2009/10 1H 2010/11 1H 2011/12 1H 2012/13 1H 2013/14
Revenue
PAT
• Transportation sector enjoyed a healthy first half with
its revenue growing by 47%, driven by the strong
performance of Aviation and Logistics segments
• Our crew boat servicing business in Galle successfully
completed its first year of operations
• Maritime segment results were challenged due to lower
transshipment volumes
• Logistics segment performed well during the quarter
and our fully fledged integrated logistics facility is
expected to commence operations in the next quarter

20. Power: Industry Highlights
Energy Generation Mix - 2012
• Maximum electricity demand in Sri Lanka reached
2146.4MW for the year 2012
6%
23%
CEB Hydro
CEB Thermal - Oil
CEB Thermal - Coal
IPP Thermal
42%
17%
• 158 power plants with total installed capacity of
3323MW was operated to deliver the annual energy
demand
Renewable
12%
Annual Overall Plant Factors
70%
60%
2011
50%
2012
40%
• Of the 158 power plants:
 25 were CEB owned
 11 thermal power plants were operated by
Independent Power Producers
 122 renewable power plants were operated by
Small Power Producers
• 18 renewable power plants were commissioned
during the year 2012 to strengthen the generation
capacity of the country
30%
20%
10%
0%
CEB Hydro CEB Thermal - CEB Thermal - CoalIPP Thermal
Oil
Renewable
Source: Generation Performance in Sri Lanka 2012, Public Utilities Commission of Sri Lanka

21. Hydro power boosts sector profits
Key Statistics
1H 2012/13
Turnover (Rs.Mn)
Profit After Tax (Rs.Mn)
• Power sector revenue dropped by 16% due to the
curtailment of thermal power generation imposed by
the CEB
: 2,645
: 250
Revenue contribution to the Group : 18%
PAT Contribution to the Group
Rs.Mn
• Operating profit and the profit after tax experienced a
growth of 101% and 97%, respectively
: 26%
Revenue and PAT
Rs.Mn
3,500
270
3,000
230
2,500
190
2,000
150
1,500
110
1,000
70
500
30
0
-10
1H 2009/10 1H 2010/11 1H 2011/12 1H 2012/13 1H 2013/14
Revenue
PAT
• Growth in profits were mainly driven by the hydro
power plants which enjoyed a higher rainfall in
catchment areas
• Rath Ganga and Manelwala hydro power plants under
Panasian Power helped to boost overall profitability of
the sector

22. Corporate Social Responsibility
“Piyawara”
“Hemas Green Club”
• Several teacher training programs were held
during the quarter and the main residential
program was held in Hambantota
• “Hemas Green Club” was formed as an
initiative to protect the environment and create
awareness about the nature
• A group of 10 bikers from Harley Owners
Group (HOG) Dubai Chapter rode cross
country to raise awareness among the general
public for our pre school project “Piyawara”
• The inaugural lecture of the Hemas Green club
on “Sustainable Development & Environment”
was delivered by veteran
environmentalist, Professor Sarath Kotagama
• Pre schools built under the “Piyawara” project
are being sustained and monitored
continuously
•
The Club initiated a plant nursery in
Dankotuwa and distributed plants among the
community and Hemas staff members

23. Taking Hemas to the „Next Level‟
• Mr. Lalith De Mel, Chairman, Hemas Holdings PLC, retired from Office on 6th
November 2013 after a service of 11 years
• Mr. Husein Esufally took over as the new Chairman of Hemas Holdings PLC and
will continue as the Group Chief Executive Officer till 31st March 2014
• Mr. Steven Enderby was appointed to the Board of Directors on 6th November
2013 and was appointed as the Deputy CEO of the Group. He will assume the
Office of Group Chief Executive Officer with effect from 1st April 2014
• Mr. Malinga Arsakularatne, the Chief Financial Officer of Hemas Group was
appointed to the Hemas Holdings Board on 6th November 2013

24. 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