Softlogic Holdings PLC

Progressive Entrepreneurship
Softlogic Holdings | Annual Report 2014-15

Our Credo
To make sound and responsible
investment decisions in all our businesses
and to employ and retain the best people;
through this, to become the most admired
corporate in Sri Lanka.
Our Core Values
Softlogic’s corporate values are
in our DNA. They guide the way
we think and act.
Through integrity,
accountability, humility,
simplicity, passion and a focus
on success, we have created
a vibrant corporate culture in
which ideas ﬂourish, people
thrive and success is assured.
INTEGRITY
We act with honesty and
uphold ethical standards
always. We genuinely value
individuals for the diversity they
bring, through their different
backgrounds, experiences,
approaches and ideas.
ACCOUNTABILITY
We emphasize accountability in
our behaviors as individuals and
collectively as a corporation.
HUMILITY
We seek the humility to place
the organization and society
before ourselves.
SIMPLICITY
We strive for simplicity by
examining and improving
processes, procedures and
activities, and breaking down
internal barriers.
PASSION
We are passionate about
our businesses and brands,
and jealously safeguard our
reputation.
FOCUS ON SUCCESS
We foster a “can do” attitude
and work tirelessly to reap
great results, simultaneously
seeking proﬁt optimization and
capital growth.
Our Vision
To be the most preferred and trusted product
and service provider delivering high quality
solutions to the corporate and retail sector
with a view to enhancing shareholder value
and revolutionising industry competencies.

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Entrepreneurship is about always being equipped with the right profit-making
decisions involving several business activities impacting the organisation
simultaneously or separately. Such decisions necessarily underpin strong
financial discipline and speed of response to changing market forces. At
Softlogic, we are forward-looking because we have always been forward-
thinking, thereby aligning our business decisions with expanding market
realities. In progressive entrepreneurship, we know that our thinking creates
markets, stimulates demand and shapes our destiny when we smartly execute
revenue and profit imperatives. This year we have synergized and consolidated
operations and have focused on reinvesting profits to create more future value
for our shareholders, business partners and all other stakeholders at large.
We think big; therefore, we are!

2
Softlogic Holdings PLC
Contents
About Softlogic 3
Group Structure 4
Financial Highlights 5
Highlights of 2014/15 6
Our Value Creation Model – ‘Make good to GREAT’ 8
Chairman’s Review 12
Board of Directors 16
Sector Heads 20
Functional Heads 22
Management Discussion & Analysis 26
Business Overview
Retail Sector 32
Healthcare Services Sector 42
ICT Sector 48
Financial Services Sector 54
Automobile Sector 60
Leisure Sector 64
Corporate Governance 70
Risk Management Review 79
Sustainability Report 85
Board Remuneration Committee Report 98
Audit Committee Report 100
Annual Report of the Board of
Directors on the Affairs of the Company 101
Financial Calendar 2015 104
Financial Statements
Statement of Directors’ Responsibilities 106
Independent Auditors’ Report 107
Income Statement 108
Statement of Comprehensive Income 109
Statement of Financial Position 110
Statement of Changes in Equity 112
Cash Flow Statement 114
Notes to the Financial Statements 117
Investor Information 215
Corporate Directory 218
Notice of Meeting 219
Form of Proxy 223
Corporate Information IBC
The Odel Story
> See page 38
A walk through Centara
Ceysand Resort & Spa
> See page 68
5pg>
13pg>
70pg>
Financial
Highlights
Chairman’s
Review
Corporate
Governance

3
Annual Report 2014-15
About Softlogic
Softlogic Holdings PLC was founded in
1991, and was listed on the Colombo
Stock Exchange in June 2011.
Softlogic is a leading diversified group,
with interests in six distinct business
sectors -- ICT, Retail, Financial Services,
Healthcare Services, Automobiles and
Leisure, in which we employ over 8,000
people across 46 companies.
Our aspirations are best expressed
in our corporate dictum, “Best in the
Business.”
We strive for continuing revenue
growth and the necessary cash flow
to allow us invest in continuously
developing our businesses and, as
importantly, paying dividends to our
shareholders. Our focus remains on the
long-term success of our businesses;
our strategy has significantly been to
acquire businesses and help them grow
faster, using the expertise that is ours.
This “progressive entrepreneurship”
has proven time and again to be an
excellent basis for value creation.
As we look forward, we continue to
execute our simple, proven strategy to
deliver more than acceptable returns
to our shareholders. Our current
businesses continue to provide many
opportunities for further growth of
individual businesses, and of the Group
as a whole.
Doing it the “Softlogic Way”
Softlogic is a conglomerate operating with a universal set of values we call the “Softlogic Way”; we work with
an array of globally recognised brands and partners to respond to and benefit from the growing Sri Lankan
economy and provide a platform for our own growth.
CUSTOMERS LEADERSHIP COMMUNITY
SHAREHOLDERS BUSINESS PARTNERS TEAM WORK
Delighted customers assure our
future; we earn their loyalty by
committing to high standards
of customer care, delivery and
after-sales service.
Everyone at Softlogic is a
potential leader. We encourage
our people to “raise the bar”
higher to assure their success,
and ours.
Softlogic cares about Sri Lanka
and Sri Lankans, and we are
proud of the ways in which
we help them, not least by
our concern for the natural
environment.
We are conscious of our
shareholders’ expectations of us;
we know we will be judged by
our delivery of monetary returns
to them and by our standard of
corporate governance.
We believe in an open
relationship with our principals
and partners, and know they will
judge us by how well we deliver
solutions to our customers,
in keeping with their service
standards and reputation.
Softlogic is ultimately judged
by how well its people work
together. We encourage an
open door policy and clear
communication to help people
deliver performance and share
pride in their own achievements
and those of the team.
>> Softlogic is a leading
diversified group, with
interests in six distinct
business sectors --
ICT, Retail, Financial
Services, Healthcare
Services, Automobiles
and Leisure, in which
we employ over
8,000 people across
46 companies.

4
Group Structure
Healthcare
Asiri Hospital
Holdings PLC
Softlogic
Capital PLC
Softlogic Retail
(Pvt) Ltd.
Softlogic Properties
(Pvt) Ltd.
SoftlogicInformation
Technologies(Pvt)Ltd.
Future Automobiles
(Pvt) Ltd.
Softlogic
International
(Pvt) Ltd.
Softlogic
Automobiles (Pvt) Ltd.
Softlogic
Communications
(Pvt) Ltd.
Softlogic Computers
(Pvt) Ltd.
Softlogic Australia
(Pty) Ltd.
Softlogic Solar
(Pvt) Ltd.
Softlogic
Communication
Services (Pvt) Ltd.
Abacus International
Lanka (Pvt) Ltd.
Nextage (Pvt) Ltd.
Softlogic Corporate
Services (Pvt) Ltd.
Softlogic BPO
Services (Pvt) Ltd.
Softlogic Mobile
Distribution (Pvt) Ltd.
Finance Retail Leisure ICT & OtherAutomobile
Asiri Surgical
Hospital PLC
Softlogic
Finance PLC
Central
Hospital Ltd.
Softlogic
Stockbrokers
(Pvt) Ltd.
Dai-Nishi
Securities (Pvt) Ltd.
Softlogic City Hotels
(Pvt) Ltd
SoftlogicDestination
Management(Pvt)Ltd.
Softlogic Real Estate
(Pvt) Ltd.
Odel PLC
Ceysand Resorts Ltd
Softlogic Brands
(Pvt) Ltd.
Odel Lanka
(Pvt) Ltd.
Odel Apparels
(Pvt) Ltd.
BSL International
Lanka (Pvt) Ltd.
Greenﬁeld Trading
(Pvt) Ltd.
Odel Properties
Pvt) Ltd.
Odel Information
Technologies
Services (Pvt) Ltd.
Silk Route Foods
(Pvt) Ltd.
Asiri Central
Hospitals Ltd.
Asian Alliance
Insurance PLC
Asiri
Diagnostics
Services (Pvt) Ltd.
CapitalReach
PortfolioManagement
(Pvt)Ltd.
Asiri Hospital
Matara (Pvt) Ltd.
Asian Alliance
General
Insurance Ltd.
Asiri Hospital
Kandy (Pvt) Ltd.
Digital Health
(Private) Limited *
Softlogic
Restaurants (Pvt) Ltd.
Softlogic
Retail One (Pvt) Ltd.
* Digital Health (Private) Limited.
was incorporated on 14 August 2015

5
Financial Highlights
For the Year ended 31 March 2015 2014 2013 2012 2011
Earnings Highlights
Group Revenue (Rs. Mn) 39,563.9 29,246.4 25,351.3 21,818.8 10,788.0
Gross Profit (Rs. Mn) 14,116.6 11,011.6 8,983.3 7,329.8 2,880.4
Earnings Before Interest Tax, Depreciation & Amortisation (Rs. Mn) 6,400.6 5,024.9 4,227.3 4,486.2 2,198.9
Finance Cost (Rs. Mn) 2,692.8 2,660.0 2,754.6 2,007.4 857.0
Group Earnings Before Interest & Taxation (Rs. Mn) 4,961.5 3,918.0 3,207.5 3,608.0 1,903.9
Group Earnings Before Taxation (Rs. Mn) 2,268.7 1,258.0 453.0 1,600.5 1,047.0
Group Earnings After Taxation (Rs. Mn) 1,819.1 1,009.1 153.0 1,015.9 971.0
Total Comprehensive Income Net of Tax (Rs. Mn) 2,160.4 1,236.6 2,077.0 855.8 -
Group Earnings Attributable to Equity holder (Rs. Mn) 555.8 155.8 (371.0) 448.3 829.0
Group Comprehensive Income Attributable to Equity holder (Rs. Mn) 760.7 220.1 557.0 340.0 -
Gross Profit Margin (%) 36 38 35 34 27
Net Profit Margin (%) 5 3 1 5 9
Earnings Per Share (Rs.) 0.7 0.2 (0.5) 0.6 1.3
Dividends (Rs. Mn) - 120 234 101 -
Interest Cover (X) 2.38 1.89 1.53 2.23 2.57
Return on Capital Employed* (%) 11 12 11 15 17
Balance Sheet Highlights
Total Assets (Rs. Mn) 87,587 65,863 53,836 44,688 29,134
Current Ratio (X) 1.0 0.9 0.82 0.73 0.49
Asset Turnover (x) 0.5 0.4 0.5 0.5 0.4
Total Interest Bearing Borrowings (Rs. Mn) 43,906 31,518 23,037 22,782 17,938
Shareholders' Funds (Rs. Mn) 7,625 6,802 7,288 7,202 3,041
Net Asset per Share** (Rs.) 9.8 8.7 9.4 9.2 3.9
Total Equity (Rs. Mn) 15,782 13,351 13,568 11,312 7,045
Debt : Equity*** (X) 2.8 2.4 1.7 2.0 2.5
Debt : Total Assets (X) 0.5 0.5 0.4 0.5 0.6
Operating Cashflow (Rs. Mn) 426 1,775 1,777 157 (1,916)
Capital Expenditure (Rs. Mn) 4,438 3,604 2,271 1,138 621
Cash Earnings per Share (Rs.) 0.5 2.3 2.3 0.2 (2.5)
Investor Information
Market close price as at 31 March (Rs.) 13.2 10.6 10.4 11.2 -
Shares in Issue (Mn) 779 779 779 779 640
Market Capitalisation as at 31 March (Rs. Mn) 10,283 8,257 8,102 8,725 -
52 Week Market Share Price High (Rs.) 20.4 8.1 13.3 28.0 -
52 Week Market Share Price Low (Rs.) 10.3 12.5 9.4 11.1 -
Price Earnings Ratio (X) 18.4 65.9 n/a 22.9 -
Price to Book Value (X) 1.3 1.5 1.4 1.4 -
Enterprise Value (Rs. Mn) 52,263 38,014 29,816 30,593 17,658
Enterprise Value : EBITDA (X) 8.17 7.56 7.05 6.82 8.03
Dividend Pay Out (%) - 77 n/a 23 -
Dividend per Share (Rs.) - 0.155 0.3 0.13 -
Dividend Yield (%) - 1 2 1 -
Total Shareholder Return (%) 25 3 (4) - -
Debenture Information
52-week Debenture Share Price High (Rs.) 110.5 n/a n/a n/a n/a
52-week Debenture Share Price Low (Rs.) 106.0 n/a n/a n/a n/a
Last Traded Price as at 31 March (Rs.) 108.1 n/a n/a n/a n/a
Last Traded Yield (%) 9.7 n/a n/a n/a n/a
No. of Debentures Traded 1,005,000 n/a n/a n/a n/a
Value Traded (Rs. Mn) 108.8 n/a n/a n/a n/a
Group Employment**** 8,433 6,822 6,400 6,085 4,581
* Return on Capital Employed calculated as percentage of EBIT and Total Capital Employed (Equity plus interest bearing borrowings).
** Net Asset Value calculated based on weighted number of shares as at 31.03.2015.
*** Debt to Equity calculated based on Total Equity Capital.
**** Excluding employees of the associate companies of the Group.

6
April2014
November2014
June2014
July2014
December2014
Softlogic partnered with
Metropolitan to promote Acer
computers.
Asiri introduced a modern platelet
counter that measures young
platelets in peripheral blood.
BURGER KING® Sri Lanka
won the award for Best
New Market in Restaurant
Excellence and the Employee
of the Year at the BK AsiaPac
PTE Ltd 2014 Asia Pacific
Convention.
Softlogic Information
Technologies launched the
new Latitude 14 Rugged
Extreme notebook and the
Latitude 12 Rugged Extreme
convertible notebooks for
customers who require
powerful solutions that
survive tough environments.
Softlogic Holdings opened the doors of its
first resort, Centara Ceysand Resort & Spa in
Bentota.
Softlogic launched its online retail store –
www.mysoftlogic.lk
The Bone Marrow Transplant and Clinical
Hematology Unit at Central Hospital carried
out the first allogeneic procedure in Sri Lanka.
Softlogic Finance was recognised as the ‘Most
Innovative Non-Banking Finance Company’
and the ‘Best Customer Service Company For
Finance’ in Sri Lanka for 2014 at the Global
Banking & Finance Review Awards.
Asian Alliance Insurance celebrated 15
years in business.
Softlogic Finance won an Effie Award as
a finalist in the ‘Finance’ category at the
2014 Awards of the Sri Lanka Institute of
Marketing, for their ‘The Bus’ campaign
on the ‘Easy withdrawals’ facility offered
to Fixed Deposit customers.
Softlogic introduced Tommy Hilfiger to Sri
Lanka with the opening of its first store at
Arcade Independence Square.
Splash, the Middle East’s largest high
street fashion retailer, opened its first
exclusive store in Colombo.
Central Hospital launched a
one-stop heart care centre,
to enable patients access
to nearly all Cardiologists,
Cardiac Surgeons and a
range of highly-advanced,
potentially life-saving
equipment in one place.
Asian Alliance Insurance
received a Silver Award in
the ‘Insurance Category’
and a further Silver Award
for Overall Excellence in
the ‘Large Companies
Category’ at the ‘National
Business Excellence
Awards 2014’.
Softlogic Finance received
a Merit Award in the
‘Non-Banking and Financial
Services Category’ at the
same event.
Softlogic opened stores --
Galleria, Samsung, Charles
& Keith & BURGER KING®
-- at the Arcade Independence
Square
With leading Consultants in
Cosmetology and Dermatology
providing services to its
discerning patients, Central
Hospital opened the doors of its
new unit dedicated to cosmetic
procedures, ‘Beauty Central’.
Highlights of 2014/15

7
October2014
August2014
September2014
January2015
February2015
March2015
Softlogic Retail, the authorised
distributor for Panasonic in
Sri Lanka, added a new dimension
in its quality assurance by
acquiring SLS certification for its
Compact Fluorescent Light (CFL)
Bulb.
BURGER KING® opened its outlet
in Kandy.
BURGER KING® introduced the world
famous Chicken Whopper to its menu.
Softlogic Retail concluded an
agreement with Whirlpool to market
and distribute Whirlpool products in Sri
Lanka.
BURGER KING® opened at the
Departures Hall of the Bandaranaike
International Airport.
Future Automobiles was awarded the
“FORD GOLDEN SHOVEL AWARD”
by Ford Motor Company in recognition
of leading-edge-facilities to support
long-term customer satisfaction and
owner loyalty.
Asiri Laboratory Services received the
esteemed 15189-2012 international
accreditation in recognition of its
competence and effectiveness in
modernisation and development of
pathology and laboratory services.
A BURGER KING® was opened
at Central Hospital.
Softlogic concluded a major
transaction on the Colombo
Stock Exchange with the
acquisition of a significant
shareholding in Odel PLC,
leading later to a 93.39%
ownership of that Company.
opened its General Insurance
Corporate Office at Ward Place,
Colombo 07.
launched innovative solutions
in General Insurance with new
“DRIVE THRU” and “365 DAY
INSURANCE” services, mainly
targeting motor customers.
Crocs™ was added to Softlogic Brand’s
portfolio, with Crocs shoes being retailed
at Odel and Mothercare.
Asiri Laboratory Services opened two collection
centres in Gampaha and Wattala.
Asian Alliance Insurance launched another
innovative insurance solution, Click2Claim,
allowing motor insurance policyholders to
accelerate claim procedures by providing a
photograph of the damaged vehicle via this
mobile phone app.
The microbiology section of Asiri Laboratory
Services was placed first in the National External
Quality Assessment Scheme in bacteriology.
Softlogic Holdings was ranked second most
valuable conglomerate brand in 2015 based
on independent market research conducted
amongst 1,700 respondents in Colombo and
Gampaha. Asiri Hospital Holdings, Odel, Asian
Alliance Insurance and Softlogic Finance were
other Group companies recognised in this
prestigious annual ranking.
Softlogic Retail opened its 200th showroom in
Mahawilachchiya.

8
Our Value Creation Model –
‘Make good to GREAT’
The catalyst driving many business acquisitions involves synergies. When companies
are merged, the whole is often greater than the sum of its parts.
1991
Softlogic Information Technologies (Pvt) Ltd (Previously known as Softlogic Information
Systems (Pvt) Ltd. after being merged with Softlogic Trading (Pvt) Ltd).
Hardware and software solutions provider.
AT ACQUISITION/ INITIATION
COMPANY
OPERATIONS
NOW
Turnover
Turnover
Asset base
Asset base
RS. 6 MN
RS. 2.3 BN
RS. 1 MN
RS. 1.8 BN
1995
Softlogic Computers (Pvt) Ltd.
Specialised in marketing and supporting networking and power protection products
through a locally established dealer channel.
COMPANY
OPERATIONS
NOW
Turnover
Turnover
Asset base
Asset base
RS. 8 MN
RS. 484 MN
RS. 8 MN
RS. 220 MN
1997
Softlogic International (Pvt) Ltd.
Authorised partner of Dialog Axiata PLC providing mobile packages. Retailer of ‘Nokia’,
‘Microsoft Lumia’ and ‘Samsung’ handsets.
COMPANY
OPERATIONS
NOW
Turnover
Turnover
Asset base
Asset base
RS. 0.4 MN
RS. 396 MN
RS. 1.1 MN
RS. 1.1 BN
1998
Abacus International (Pvt) Ltd
An associate set up in partnership with Abacus International Ltd,
Asia Paciﬁc’s largest computer reservations system.
COMPANY
OPERATIONS
NOW
Turnover
Turnover
Asset base
Asset base
RS. 8 MN
RS. 184 MN
RS. 15 MN
RS. 91 MN

9
2006
Softlogic Retail (Pvt) Ltd (Previously known as Uni Walkers Ltd)
Was agent for Daihatsu and Panasonic. This operation is now carried out through our
Automotive, Consumer Durables and apparel sector.
COMPANY
OPERATIONS
NOW
Turnover
Turnover
Asset base
Asset base
RS. 150 MN
RS. 9.1 BN
RS. 658 MN
RS. 13.2 BN
2010
Softlogic Capital PLC (Previously known as Capital Reach Holding (Pvt) Ltd.)
Sector holding company of the ﬁnancial services cluster.
COMPANY
OPERATIONS
NOW
Turnover
Turnover
Asset base
Asset base
RS. 960 MN
RS. 10 BN
RS. 5.4 BN
RS. 32.9 BN
2011
Asiri Hospital Holdings PLC
Acquired controlling stake of country’s leading private healthcare provider.
COMPANY
OPERATIONS
NOW
Turnover at initial consolidation
Turnover
Asset base
Asset base
RS. 4.9 BN
RS. 8.6 BN
RS. 12.4 BN
RS. 18.2 BN
Centara Ceysand - a 84-room resort in 2010.
Property acquired to construct a ﬁve-star city hotel,
Movenpick City Hotel in 2011.
2004
Softlogic Properties (Pvt) Ltd
Holding company of the leisure sector.
COMPANY
OPERATIONS
NOW
Asset Base
Asset Base
RS. 227 MN
RS. 3.6 BN Centara Ceysand Resorts & Spa - a 166-room 4-star plus
Resort & Spa.
Movenpick City Hotel has an asset base of Rs.3.2 Bn.

10
We’re in the business
of adding value -
whatever we do...
10

11
11
EXTENSIVE
REACH
Softlogic reaches out to thousands of
customers across the island every day,
through our wide branch network and
strong presence in six sectors.
While we focus on providing growing value to every stakeholder, we have signiﬁcantly
expanded our customer service capabilities through a broader presence across the island.
At Softlogic we are conﬁdent that we can further strengthen our positions in the markets
we serve, adding value to all stakeholders.
HEALTHCARE
SERVICES
AUTOMOBILE
LEISURE
FINANCIAL
SERVICES
ICT
RETAIL
Restaurants – 07
Branded Apparel – 22
Odel - 20
Consumer Electronics – 208
Furniture – 01
Hospitals – 05
Laboratories – 09
Collection Centres – 12
Telco, Regional Distributors – 24
Telco, Dealers – <1,500
Telco, Retail points – <40
Mobile Service Centres – 05
Softlogic Computers and Service Center – 01
IT, Regional Technical Support points – 17
Softlogic Finance – 23
Softlogic Finance Gold Loan Centres – 09
Asian Alliance Insurance – 63
Asian Alliance General Insurance – 13
Asian Alliance Insurance operating via Softlogic Retail network – 36
Centara Ceysand Resorts & Spa – 01
Ford Centre – 01
Ford Service Dealers – 04
Daihatsu – 01

>>The progress we made in 2014,
combined with the presence in six
sectors which will benefit from growth
in the economy, will consolidate
Softlogic’s position in the market.
13
Dear Shareholders,
Progressive Entrepreneurship takes
time to put in place. Patience, hard
work, trust, agility and passion are
important. But above all, creative vision
is essential.
We present this year’s Annual Report with
satisfaction. The theme is ‘Progressive
Entrepreneurship’, and we continue to
pursue the optimal value for our mix of
stakeholders - shareholders, employees,
partners and the communities with whom
we interact. We have achieved solid results
this year and have created the groundwork
for even better results in the future.
A long term view is essential to sustainable
growth. The year brought us investment
opportunities we capitalised on. We
aggressively pursued the acquisition
of Odel while tightening our existing
operations to consolidate activities and to
ensure greater Shareholder Value.
The external environment was challenging
in many sectors, especially in the early part
of the year when interest rates impacted
and floods affected purchasing ability.
Despite these challenges, our strategy
and our engaged workforce enabled us
reinforce our strong positions across our
business sectors. We made progress with
our cost leadership initiatives, consolidating
and streamlining individual sectors while
extending our reach and customer service
capability. The progress we made in
2014, combined with the presence in six
sectors which will benefit from growth in
the economy, will consolidate Softlogic’s
position in the market.
BUSINESS PERFORMANCE
The Sri Lankan economy grew 7.4%
amidst many challenges in 2014.
Consumer and investor confidence
recovered during the year, due to low
inflation and interest rates, and the
exchange rate remaining stable.
Your Group performed strongly during the
year. Notable achievements were:
• Asset growth: Total assets at end-
March 2015 rose to Rs.87.6 Bn, from
Rs.65.9 Bn last year.
• Revenue & Profit Growth: We
boosted Group Revenue to nearly
Rs.40.0 Bn (a 35.3% growth). Profit
before tax grew to Rs.2.3 Bn (up
80.3%) and profit after tax increased
to Rs.1.8 Bn (up 80.3%).
• Strategic Moves: Opening of
Group’s first resort, Centara Ceysand
Resorts & Spa, acquisition of Odel,
commencement of ‘Samsung’
operations and the representation of
new brands (Tommy Hilfiger, Pepe
Jeans, Whirlpool and Crocs™).
• Investments: Expansion of our
retail business and BURGER KING®
franchise, construction of Softlogic
City Hotel and investment in high-tech
medical facilities at Asiri.
• Immediate Goal: Improving
performance at Retail and ICT sectors.
Your faith in Softlogic Holdings brought
rewards, with the value of our share rising
25% during the year.
INFORMATION &
COMMUNICATIONS
TECHNOLOGY
Information Technology is dynamic, fast-
changing and fiercely competitive. Despite
challenges due to some projects being
withheld for re-evaluation, the industry
forged ahead with purchasing power
improving, corporate interest re-emerging,
public awareness rising and device prices
declining. ‘Dell’ was recognised as the No.
1 PC brand in the country for the seventh
consecutive year in the latest report
from the International Data Corporation,
capturing 38.5% of the PC market during
2Q2014.
Our IT businesses have moved a step
ahead, to focus on advanced end-user
computing, data centre and recovery
solutions, advanced infrastructure
(including intelligent building management
systems) and data security. These areas
are considered key elements in Sri
Lanka’s IT industry in the future. Routine
technological upgrades were deferred
by users due to uncertainty. With the
conclusion of both the Presidential and
General Elections, we expect to see
resurgence this year.
Impressive results in our
telecommunications business was
primarily driven by our recently
commenced ‘Samsung’ operations –
Softlogic Mobile Distribution. Despite
being in business for only four months
of the year, the company contributed
notably to the sector’s achievements.
Synergies helped this success. ‘Nokia’
and ‘Microsoft Lumia’ handset ranges
continued to perform strongly. With
consumer preference favouring authorised
and reliable suppliers, the grey market

14
Chairman’s Review
no longer poses a serious threat. We
continued to lead the mobile handset
market in Sri Lanka in 2014.
RETAIL
The Odel acquisition was the year’s
highlight, and we now own 93.39%
of the company. We saw Odel as one
of the strongest local fashion brands
serving a broader spectrum of customers.
The company’s asset base was also
considered, when we decided on this
strategic acquisition. Considerable
synergies have been realised following the
acquisition. These accrue from the sharing
of retail space, back-end infrastructure, in-
house management expertise, and a wider
exposure for our brands.
The geographical expansion of our
Consumer Durables business continued.
Our current 208 showrooms cover retail
space of 263,714 sq. ft, and we expect
to have 250 stores in place by end-March
2016. Expansion is planned taking an
approach emphasising cost consciousness
and synergy.
Brand acquisitions continued at Softlogic
Brands, as we added ‘Tommy Hilfiger’ in
December 2014, and ‘Crocs™’ and ‘Pepe
Jeans’ in April and June 2015 respectively.
‘Splash’ was relocated in Colombo in
December 2014 to better position itself to
capture its middle income target audience.
We opened three stores at Liberty Plaza
for ‘Pepe Jeans’, ‘Giordano’ and an
international watch station in April 2015.
Our Quick Service Restaurant chain
extended to Kandy, a fast developing part
of the hill region. Another was opened at
Central Hospital. BURGER KING® also
opened at the Colombo International
Airport and at the Arcade, Independence
Square during the financial year.
These initiatives drove performance of the
retail sector strongly during the year.
HEALTHCARE SERVICES
‘Asiri’ is recognised for its world-class
healthcare in Sri Lanka. Each Asiri hospital
is a centre of excellence, offering the
highest standard of medical care by
dedicated medical personnel. We have
continuously invested in state-of-the-art
medical facilities to ensure we continue
to provide the best of modern medical
treatments.
Central Hospital launched the first
ever advanced cosmetology and
dermatology centre, ‘Beauty Central’.
The centre’s procedures include; laser
hair removal, removal of vascular
birthmarks, dermatological procedures,
facial rejuvenation and face-lifts, keloid
scar reductions and a host of aesthetic
treatments not requiring incision, surgery
or general anaesthesia. A state-of-the-art
Cardiac Centre was also opened at Central
Hospital in November 2014.
Asiri Surgical Hospital introduced Digital
Mammography, making Asiri the first
private healthcare provider to offer
advanced three dimensional imaging
detection of breast cancer.
Training and qualifying for the Joint
Commission International Accreditation is
near completion. We expect to obtain this
accreditation next year.
We pursue development of our hospital in
Kandy, based on research that identifies
Considerable synergies have
been realised following the
Odel acquisition. These accrue
from the sharing of retail space,
back-end infrastructure, in-house
management expertise, and a
wider exposure for our brands.
35.3%
Revenue
Rs. 39.6Bn

15
AUTOMOBILES
The Automobile sector’s fortunes are
closely linked to changes in the import duty
structure. Notable improvements in sales
were achieved during the year, following
relaunch of our ‘King Long’ bus range.
Sales of these buses are mainly to the
leisure sector. Our Body, Paint and Repair
Centre, which works closely with Asian
Alliance General Insurance, progressed
ahead of expectation, while the 3S Facility
for Ford and Daihatsu showed modest
returns.
We are repositioning our products
competitively to drive volumes in the
future. We will widen our portfolio with
new FORD models, and will focus on
‘green’ vehicles to benefit from tax
concessions applicable there.
LEISURE
We opened the doors of our first resort,
Centara Ceysand Resorts & Spa, in June
2014. Feedback and reviews have been
positive, and the resort enjoyed full
occupancy during the winter peak season.
This four-star plus resort has become a
preferred destination on the southern
coast. It offers a wide range of amenities
to complement its exquisitely furnished
hotel rooms and suites. Its facilities and
warm hospitality ensure success.
We believe the success story of Centara
Ceysand Resorts & Spa will also extend to
our city hotel. Both hotels are managed by
international operators- Centara Hotels &
Resorts, Thailand and Movenpick Hotels &
Resorts, Switzerland.
The structure of the Movenpick City
Hotel was completed in September 2014.
We are now at an advanced stage of
installations and interior fit-out works. We
expect to open this five-star hotel late in
2016.
POSITIONED FOR PROGRESS
Softlogic is well positioned to grow its
business and deliver strong results to its
owners. We have a diversified platform
that gives us wide exposure to Sri Lanka’s
economic growth, which we expect will
receive fresh impetus following Sri Lanka’s
recent elections.
An extraordinary team with an unrelenting
commitment to excellence provides
the expertise and maturity to guide our
decisions and actions.
We expect that Softlogic will, after a time
of consolidation, enhance revenues from
every sector in which it is active.
APPRECIATION
We are fortunate to have an excellent
executive team and pool of human
resources. I thank all of them for
committing their talent and effort to
building our success.
I also record my personal appreciation to all
our Directors, who have been unstinting in
their support during the year.
We thank our investors for their confidence
in us. When I report to you on Softlogic’s
progress next year, I am sure I will be
reporting on a robust organisation ever
more focused on delivering value to you.
We look forward to continuing our journey
together.
Ashok Pathirage
Chairman
31 July 2015
a need for private healthcare outside
Colombo. Kandy is the commercial hub of
the hill country. Asiri, a brand which has
won the trust of people across the country,
will be well accepted there. We intend
to set up a 133-bed hospital expected
to commence operations in 2018.
Construction is to begin in October 2015.
FINANCIAL SERVICES
Our Financial Services sector moved
steadily during the year, with good
performances all round. Asian Alliance
Insurance, which ranks 5th in Life
Insurance, led the way. Overall Gross
Written Premium for both Life and
General insurance reached Rs.4.9 Bn,
an increase by 16.1% over the previous
year. Life business recorded a growth of
20.4%. General Insurance, which enjoys
some synergy with our Healthcare and
Automotive Sectors, saw premiums rise
8.9%.
With changes in the duty structure and tax
concessions for vehicles, vehicle values
declined significantly affecting the Leasing/
HP business of the finance companies.
This made us focus more on lending to
the SME sector, where we see immense
potential. Softlogic Finance, which ranked
10th in the Industry with Total Assets of
Rs.20 Bn, saw Customer Deposits rise to
Rs.12.0 Bn and the Lending Portfolio to
Rs.15.3 Bn during the year.
Softlogic Stockbrokers has a very
experienced investment advisory team
and a strong foreign and institutional client
base. The company performed well and
was ranked third in the industry at the end
of the year.
We raised capital in these businesses
during the year, concluding rights issues
of 10:28 (at Rs.30 per share) and 13:10 (at
Rs.3.40 per share) at Softlogic Finance and
Softlogic Capital respectively.

16
Board of
Directors

17
Left to right
Harris Premaratne - Non-Executive Director, Ashok Pathirage - Chairman/ Managing Director,
Roshan Rassool - Executive Director, Richard Ebell - Non-Executive Independent Director,
Ranjan Perera - Executive Director, Dr. Sivakumar Selliah - Non-Executive Independent Director,
Prashantha Lal De Alwis - Non-Executive Independent Director, Haresh Kaimal - Executive Director,
Hemantha Gunawardena - Executive Director

18
‘With their knowledge and experience gained in
diverse businesses as Directors and Senior Managers,
the Board of Directors has the capability needed
to build on successes of the past and establish
Softlogic as a pre-eminent Sri Lankan conglomerate.’
Ashok Pathirage
Chairman/ Managing Director
With a visionary outlook, Mr. Pathirage
provides strategic leadership to a
conglomerate whose turnover is nearly
Rs.40 Bn. He was appointed Chairman
of Softlogic in 2003. Six other entities
under his Chairmanship are listed on
the Colombo Stock Exchange. He is
the Chairman/Managing Director of the
country’s leading private healthcare
provider, Asiri Group of Hospitals. He is
also Chairman of Softlogic Capital PLC,
Softlogic Finance PLC, Asian Alliance
Insurance PLC, Asian Alliance General
Insurance Ltd. and Odel PLC whilst
also being Chairman of other Group
companies that operate in Leisure,
Retail, Automobile and ICT businesses.
He also serves as Deputy Chairman of
National Development Bank PLC and is
Chairman of NDB Capital Holdings PLC.
Hemantha Gunawardena
Executive Director
Mr. Gunawardena is one of the co-
founders of the Softlogic Group and has
served as a Director from its inception.
He has extensive experience in the
ﬁeld of IT, both front- and back-end,
and counts over 25 years in this ﬁeld.
He was a Senior Software Manager at
a leading Sri Lankan Blue Chip before
joining Softlogic. He is presently
Director/CEO of the Software Division
of Softlogic Information Technologies
(Pvt) Ltd and Director Softlogic BPO
Services (Pvt) Ltd.
Haresh Kaimal
Executive Director
Mr. Haresh Kaimal is a co-founder
of Softlogic and a Director since its
inception. With over 25 years of
experience in IT and operations, he
currently heads the IT division of
the Group to drive advancements in
Information Technology and Enterprise
Resource Management within
Softlogic. He is also a Director of Odel
PLC and Softlogic BPO Services (Pvt)
Ltd.
Ranjan Perera
Executive Director
Mr. Ranjan Perera is one of the co-
founders of Softlogic. He is Sector Head
– Mobile Business and the Managing
Director of Softlogic International
(Pvt) Ltd. He possesses extensive
knowledge from his many years
of experience in senior managerial
positions handling world renowned
brands in mobile telecommunication.
Roshan Rassool
Executive Director
Mr. Roshan Rassool joined Softlogic
in 1995 and was appointed to the
Board in 2009. He is Director/CEO of
the Computing Systems & Systems
Integration Solutions Division of
Softlogic Information Technologies
(Pvt) Ltd., which has business
partnerships with Dell Corporation,
Apple Computers, Lenovo, CISCO,
EMC storage systems, Microsoft, HP
imaging products and VMware. He was
appointed a member of Dell South Asia
Partner Advisory Council in 2011. He
served as Chairman of Infotel Lanka
in 2006/2007 and was President of Sri
Lanka Computer Vendors Association at
the same time. He was also Chairman
of the Federation of Information
Technology Industries, Sri Lanka in
2007.
He holds an MBA from the University
of East London. He is also an Associate
Member of the Association of Business
Executives and a Member of the
Cyprus Institute of Marketing. He has
over 25 years of experience behind him
in the ICT industry having worked at
senior managerial positions in reputed
companies.
Board of Directors

19
Dr. Sivakumar Selliah
Non-Executive Independent Director
Dr. Selliah holds an MBBS degree and
a Masters Degree (M.Phil). He joined
the Board of Softlogic in 2010. He has
over two decades of experience in
varied ﬁelds. He is Deputy Chairman
of Asiri Hospitals Holdings PLC, Asiri
Surgical Hospital PLC and Central
Hospital Ltd. He is a Director of Odel
PLC, HNB Assurance PLC, Lanka
Walltiles PLC, Lanka Tiles PLC, Horana
Plantations PLC, ACL Cables PLC and
Lanka Ceramics PLC. He is also the
Chairman of Cleanco Lanka (Pvt) Ltd
and JAT Holdings (Pvt) Ltd. Dr. Selliah
serves on the Remuneration and Audit
Committees of some of the companies
on whose Board he serves.
Prashantha Lal De Alwis, PC
Mr. Prasantha Lal De Alwis joined the
Softlogic Board as a Non-Executive
Director in 2011. He obtained his
LL.B (Bachelor of Law) and LL.M
(Masters in Law) from the University
of Colombo and Sri Lanka Law College
respectively and was enrolled as an
Attorney-at-Law in 1983. He started
his career as a State Counsel at the
Attorney General’s Department of
Sri Lanka in 1983 and served in that
capacity until 1990. He subsequently
joined the private bar and since then
has practised in both Appellate and
Trial courts, specialised in Criminal
and Family Law. He was appointed a
President’s Counsel in 2012. He is a
visiting Lecturer at the Faculty of Law,
University of Colombo, and a member
of the Board of Management of the
Centre for Studies of Human Rights,
University of Colombo. Mr. De Alwis
was a Director of Sampath Bank PLC
from 2002 to 2011 and Chairman of
its Human Resources, Remuneration
and Risk Management Committees.
He presently serves as a Director of
Siyapatha Finance PLC, Orit Apparel
Ltd. and Coral Sands Hotel Ltd. He is
an Associate Member of the Chartered
Institute of Marketing (CIM) UK and
is presently Honorary Legal Advisor
of CIM Sri Lanka and the Ayurveda
Doctors (Gampaha Wickremarachchi)
Association of Sri Lanka. He was a
founder member of the Consumer
Affairs Authority of Sri Lanka in 2002.
He was appointed as Honorary Consul
for Seychelles in Sri Lanka by the
President of the Republic of Seychelles
in October 2013.
Harris Premaratne
Non-Executive Director
Mr. Harris Premaratne joined the
Softlogic Board in February 2014. He
has extensive banking experience,
having held several top positions and
gained many accolades in the banking
industry. He is an Associate of the
Chartered Institute of Bankers, London.
Mr. Premaratne is a Past President of
the Sri Lanka Banks’ Association. He is
currently on the Boards of Asiri Hospital
Holdings PLC, Asiri Surgical Hospital
PLC, Softlogic Capital PLC, Asiri Central
Hospitals Ltd. and Central Hospital
Ltd. and is Chairman of Remuneration
Committee and member of the Audit
Committee of all those hospitals. He
was appointed Executive Director and
Deputy Chairman of Softlogic Finance
PLC on 21 January 2015.
Richard Ebell
Mr. Richard Ebell was appointed to
the Board of Softlogic in March 2014.
He is a Fellow of the Institute of
Chartered Accountants of Sri Lanka
(CA Sri Lanka) and the Chartered
Institute of Management Accountants
(CIMA), UK. He also holds a Diploma in
Marketing from the Chartered Institute
of Marketing (CIM), UK. Mr Ebell
has experience of almost 40 years in
ﬁnance and commercial activity after
qualifying as a Chartered Accountant.
He is a Past President of CIMA, Sri
Lanka Division, and a member of CA
Sri Lanka’s Quality Assurance Board.
He participated in establishing an Audit
Committee Forum in June 2014, and
remains involved with that initiative.
Mr. Ebell also serves on the Boards of
Finlays Colombo PLC and Cargills Bank
Ltd.
Note : Desamanya Deva Rodrigo
served as a Non-Executive Independent
Director of Softlogic Holdings PLC until
his resignation from the Board on 30
June 2014.

20
Iftikar Ahamed - Financial Services
Dr. Manjula Karunaratne - Healthcare Services
Nasser Majeed - Retail
Dr. Stephan Anthonisz - Leisure
Sector Heads

21
‘It is our endeavour to remain focused on opportunities to reach
operational excellence. We balance this freedom with a strong sense
of cost-discipline in mind being fully aware of those market forces
which require fast response to change. Our guidelines and processes,
facilitate innovation and promote unrivalled customer service which is
documented and well understood across the Group’
Iftikar Ahamed
Sector Head – Financial Services
Iftikar Ahamed heads the Financial
Services sector of the Group. He is
Managing Director of Softlogic Capital
PLC, the holding Company of the
Financial Service sector, and is also
Managing Director of Asian Alliance
Insurance PLC and an Executive
Director of Softlogic Finance PLC
and Softlogic Stockbrokers (Pvt) Ltd.
Mr. Ahamed counts over 30 years of
experience in a wide range of roles
within the financial services industry
and has extensive banking experience
both in Sri Lanka and overseas. He
has held senior management positions
as Deputy Chief Executive Officer at
Nations Trust Bank PLC and Senior
Associate Director at Deutsche Bank
AG. He holds an MBA from the
University of Wales, UK.
Dr. Manjula Karunaratne
MBBS, M.Sc (Trinity, Dublin), Dip. MS
Med (UK) MSOrth Med. (Eng)
Sector Head – Healthcare Services
Dr. Karunaratne was appointed to
the Board of Asiri Hospital Holdings
PLC and Asiri Surgical Hospital PLC in
2006, and is currently Chief Executive
Officer of the Asiri Hospitals Group. He
also serves on the Boards of Central
Hospital Ltd, Asiri Central Hospital
Ltd., Asiri Hospital Matara (Pvt) Ltd.,
Asiri Diagnostic Services (Pvt) Ltd.
and Asiri Hospital Kandy (Pvt) Ltd. He
previously held the positions of Medical
Director, Asiri Hospital Holdings PLC
and was Group Chief Operating Officer,
Asiri Hospitals Group. Dr. Karunaratne
is a Specialist in Sports/ Orthopedic
Medicine. He possesses over 25 years
of professional medical experience
both in Sri Lanka and overseas, and
is responsible for the overall medical
policy of the Group.
Nasser Majeed
Sector Head – Retail
Mr. Nasser Majeed assumed duties as
CEO, Retail Sector in 2013. He counts
over 25 years of multi- disciplined
business experience, starting his career
at KPMG Ford Rhodes Thornton &
Company in 1981 and moving to Singer
Industries (Ceylon) Ltd. in 1984. He
served the Singer group in many areas
including Cost Accounting, Product
Management, Exports, Marketing and
General Management. His experience
includes a stint as Director / General
Manager of PT Singer Indonesia Tbk.,
from 2005 to 2006 and thereafter
as Marketing Director of Singer Sri
Lanka PLC from 2007 to 2013. Nasser
also served on the Boards of Regnis
Appliances Ltd., and Singer Sri Lanka
PLC as an Alternate Director.
Dr. Stephan Anthonisz
Sector Head – Leisure
Dr. Anthonisz joined Softlogic in 2012
as CEO/ Director of Softlogic Properties
(Pvt) Ltd. He is responsible for our two
leisure projects of which one, Centara
Ceysand Resorts & Spa, is now in
operation. Stephan has held managerial
positions covering diverse roles in
Sri Lanka and overseas with leading
conglomerates. He previously held the
position of Head of Value Added Tea
Exports at Unilever Ceylon Ltd., before
taking on the role of CEO, Property
Development with Asian Hotel &
Properties PLC. He holds an MBA and
a Doctorate in Business Administration
from the Australian Institute of
Business Administration, Adelaide.
The entrepreneurial
spirit of our team

22
Functional Heads
Desiree Karunaratne - Group Director Marketing
Linton Nelson – Director, Logistics
Vindya Solangarachchi - Head of IT
Ruwanthi Fernando - Head of Business Consultancy and
Resource Planning
Damith Vitharanage - Group Head of Risk and Internal Audit
Erandi Wickramaarchchi - Group Chief Financial Ofﬁcer

23
Hiran Perera - Head of Treasury and Corporate Finance
Chinthaka Ranasinghe - Head of Strategy and
Business Development
Natasha Fonseka - Group Head of
Human Capital & Taxation
Meneka Galgamuwa - Head of
Corporate Planning

24
Chinthaka Ranasinghe
Head of Strategy and Business
Development
Joining Softlogic in 2014, Mr. Chinthaka
Ranasinghe heads the Group Strategy
and Business Development division. He
has over 18 years of senior managerial
experience in equity research and
investment banking in one of Sri
Lanka’s leading conglomerates.
He is a Management Graduate from
the University of Colombo (BBA) and
a Passed Finalist of the Chartered
– UK.
Damith Vitharanage
Group Head of Risk and Internal Audit
He joined Softlogic in 2013 and has
over 15 years of senior managerial
experience in Audit, Investigation,
Financial Management, Financial
Analysis, Administration, Human
Resource Management, Information
Security, Risk Management and
General Management in both the state
and private sectors in Sri Lanka and
the Middle East. He is a Management
Graduate from the University of
Colombo (BBA), holds a Post- graduate
diploma in HR and possesses a
Management MBA specialised in
Transformational Leadership.
He has Associate Memberships from
the Institute of Chartered Accountants
of Sri Lanka, the Chartered Institute
of Management Accountants (CIMA),
UK, and the Chartered Institute of
Marketing (CIM), UK, and is a Certified
Information System Auditor (CISA) USA
and Certified Project Manager (PMP)
USA.
Desiree Karunaratne
Group Director - Marketing
She joined Softlogic in 2003 and is
Group Director Marketing.
She holds an MBA from the University
of Wales. She has over 15 years of
senior management experience across
a diverse range of businesses in retail,
fashion, information technology, travel
and media. She serves on the Boards
of Softlogic Restaurants (Pvt) Ltd.,
Softlogic Destinations Management
(Pvt) Ltd., Silk Route Foods (Pvt) Ltd
and Nextage (Pvt) Ltd.
Erandi Wickramaarchchi
Group Chief Financial Officer
She joined Softlogic in 2004 and serves
as Group Chief Financial Officer. She
holds a Special Degree in Accountancy
and Financial Management from the
University of Sri Jayawardenepura. She
is a Fellow of the Institute of Chartered
Accountants of Sri Lanka and an
Associate of the Institute of Certified
Management Accountants, Sri Lanka.
She holds an MBA in Finance from the
Cardiff Metropolitan University. She
is also an Associate of the Institute
of Certified Public Accountants (CPA),
Australia. She serves on the Boards
of Softlogic Capital PLC, Softlogic
Communications (Pvt) Ltd., Softlogic
Corporate Services (Pvt) Ltd., Softlogic
BPO Services (Pvt) Ltd. and Ceysand
Resorts & Spa Ltd.
Hiran Perera
Head of Treasury and Corporate
Finance
He joined Softlogic in 2013 as the Head
of Corporate Finance and Treasury.
Prior to this appointment, he was
Head of Wholesale Risk, Sri Lanka and
Maldives, at HSBC. He counts 28 years
of experience in banking, including
three years of cross-border exposure.
Linton Nelson
Director - Logistics
He joined Softlogic in 2013 as Director
- Logistics and is responsible for
Group Shipping & Logistics (including
Odel’s distribution centre) and Group
Security. He counts over 37 years
of experience in the Department of
Customs of Sri Lanka, with 15 years of
senior managerial experience as Head
of Intelligence and Director Sea Cargo
Clearance. He is in the final stages of a
Bachelor’s Degree in Law at the Open
University of Sri Lanka and holds a
Higher National Certificate in Business
Studies. He has had special training in
the UK, USA, Japan, Australia and China
to strengthen his expertise in logistics.
Meneka Galgamuwa
Head of Corporate Planning
She joined Softlogic in 2011 and serves
as Head of Group Corporate Planning.
She is an Associate of the Chartered
(CIMA), UK, and an Associate of
the Chartered Institute of Marketing
(CIM), UK, and holds an MBA from
the University of Sri Jayawardenapura.
She has over 15 years of senior
management experience in diverse
industries in Sri Lanka and the UK.
Functional Heads

25
Natasha Fonseka
Group Head of Human Capital &
Taxation
She joined the Group in 2010 and is
currently Group Head, Human Capital
& Taxation. She is an Associate of the
Chartered Institute of Management
Accountants (CIMA), UK and a
Chartered Global Management
Accountant (CGMA), USA. She counts
over 20 years of experience in senior
managerial positions in taxation,
financial advisory services, finance
and human resources in reputed
professional firms and in the private
sector.
Ruwanthi Fernando
Head of Business Consultancy and
Resource Planning
Ruwanthi joined Softlogic in 2014. She
brings on board more than 17 years
of experience as a senior manager in
various MNCs based in Sri Lanka and
the USA. Her career in finance and in
ICT spans across corporate banking,
venture capital, equity research,
technology advisory and business
process outsourcing (BPO)/ offshoring.
She holds an MBA from the University
of New Haven, Connecticut, USA and
completed a Programme on Investment
Appraisal, Project Finance and Risk
Analysis, Harvard International Institute
of Development (HIID), Harvard
University, USA. She is also a finalist of
the Chartered Institute of Management
Accountants (CIMA), UK.
Vindya Solangaarachchi
Head of IT
He joined Softlogic in 2013 as Head
of IT. He holds a Master of Science
Degree in Technology Management
(from Staffordshire University), a
Bachelor’s Degree in Information (from
Charles Stuart University), a Higher
National Diploma (from Edexcel) and
a Diploma in Computer Studies (from
NCC, UK) and is a Member of the
British Computer Society. He counts
over 15 years of senior management
experience in ICT, retail and insurance.

>> We believe that with policy stability, a fast moving
economy would ensure the multiplier effect of growth
which then will naturally accompany the principle
of intrinsic value creation inherent in our diversified
business model; this will propel the Group to a new
unparalleled height.
26
Management Discussion
& Analysis
LOCAL ECONOMY
Economic Indicators
2014 2013 2012 2011 2010 2009
GDP (Market Prices) USD Bn 74.9 67.2 59.4 59.2 49.6 42.1
GDP per Capita USD 3,625 3,280 2,922 2,836 2,400 2,057
GDP Growth % 7.4 7.2 6.3 8.2 8.0 3.5
Unemployment Rate % 4.3 4.4 4.0 4.2 4.9 5.8
GDP Deflator 5.1 6.7 8.9 7.9 7.3 5.9
Export USD Mn 11,130 10,394 9,774 10,559 8,626 7,085
Imports USD Mn 19,417 18,003 19,190 20,269 13,451 10,207
Workers' Remittances USD Mn 7,017.8 6,407.0 5,985 5,145 4,116 3,330
Current Account Balance % of GDP (2.7) (3.8) (6.7) (7.8) (2.2) (0.5)
Tourist Arrivals '000 1,527 1,275 1,006 856 654 448
Overall Balance USD Mn 1,369.0 985.0 151 (1,061) 921 2,725
Total External Debt USD Mn 43.0 39.9 37.1 42.2 43.3 44.4
Annual Average Exchange Rate Rs/ USD 130.6 129.1 127.6 110.6 113.1 114.9
Budget Deficit % of GDP 6.0 5.9 6.5 6.9 8.0 9.9
Government Debt % of GDP 75.5 78.3 79.2 78.5 81.9 86.2
Interest Rate (91-Day T-Bill), % p.a 5.7 7.5 10.0 8.7 7.2 7.7
Inflation Rate (Annual Avg CCPI Change) % 3.3 6.9 7.6 6.7 6.2 3.5
Year End All Share Price Index 7,298.95 5,912.8 5,643.0 6,074.4 6,635.9 3,385.6
Diversified Sector Index 2,105.5 1,759.5 1,822.0 1,909.1 2,2421 1,132.8
S&P SL20 Index 4,089.1 3,263.9 3,069.0 n/a n/a n/a
Population '000 20,675 20,483 20,328 20,869 20,653 20,450
Doing Business Ranking 99 85 83 102 105 97
Sovereign Ratings:
Fitch BB- Stable BB- Stable BB- Stable BB- Stable B+ Positive B+Negative
Standard & Poor's B+ Stable B+ Stable B+ Stable B+ Positive B+ Stable B Negative
Moody's B1 Positive B1 Positive B1 Positive B1 Positive B1 Stable -

27
Sri Lanka’s economy grew 7.4% in
2014, up marginally from 7.2% a year
earlier yet lower than the projection
of 7.8%. Accordingly, per capita
GDP increased to USD3,625 in 2014
from USD3,280 in the previous year.
Inflation was contained at single-digit
levels for the sixth consecutive year,
with reductions in fuel, gas, electricity
and water prices late in the year.
Unemployment declined marginally,
to 4.3% in 2014 from 4.4% last year.
The year witnessed a political transition
with the Presidential Election in January
2015, bringing some uncertainty on
economic policy.
Growth was led by domestic
consumption expenditure, while
investments added to the economic
expansion during the year. The Services
sector, which accounted for 57.6%
of GDP, grew 6.5% for 2014 led by
wholesale and retail trade, transport
and communication, banking, insurance
and real estate. The Industrial sector
recorded growth of 11.4% in 2014,
increasing its share to 32.3% of GDP
(31.1% in 2013), with the Construction
sub-sector being the top contributor.
Agriculture suffered due to adverse
weather patterns, and grew marginally
in 2014. Lower interest rates drove
private consumption, whilst domestic
savings grew slightly to 21.1% of the
GDP (20.0% of the GDP in 2013).
Sri Lanka’s external sector reflected
an overall BOP balance. The current
account deficit narrowed to 2.7% of
GDP (3.8% in 2013) with help from
workers’ remittances. The trade deficit
declined to 11.1% of the GDP in
2014 (from 11.3% last year). Regular
policy intervention maintained foreign
exchange rates during the year.
GLOBAL ECONOMY
The global economy grew 3.4% in
2014. Advanced economies recovered,
while growth in emerging market and
developing economies slowed.
OUTLOOK
Global
A global slowdown was witnessed
during 1Q2015, mostly from North
America. However, easy financial
conditions, more helpful fiscal policies
in the Euro region, lower oil prices and
improving confidence and labour market
conditions countered stalling growth.
• Emerging Markets – Negative
Growth for the last four years has
not encouraged expectations of mid-
term growth. However, a rebound is
expected in 2016.
Projections
2013 2014 2015E 2016E
Global
World Output (Annual Growth %) 3.4% 3.4% 3.3% 3.8%
Advance Economies (Annual Growth %) 1.4% 1.8% 2.1% 2.1%
Emerging Market and Developing Economies (Annual Growth %) 5.0% 4.6% 4.2% 4.7%
World Trade Volume - Goods & Services (Annual Growth %) 3.3% 3.2% 4.1% 4.4%
Commodity Prices
Oil -0.9% -7.5% -38.8% 9.1%
Non-Fuel (average based on world commodity export weights) -1.2% -4.0% -15.6% -1.7%
Consumer Prices
Advance Economies (Annual Growth %) 1.4% 1.4% 0.0% 1.2%
Emerging Market and Developing Economies (Annual Growth %) 5.9% 5.1% 5.5% 4.8%
London Interbank Offered Rate (%)
On USD (six month) 0.40% 0.3% 0.40% 1.20%
On Euro (three month) 0.2% 0.2% 0% 0%
On JPY (six month) 0.2% 0.2% 0.10% 0.10%
Source : World Economic Outlook – July 2015 Update
‘Slower Growth in Emerging
Markets, a Gradual Pickup in
Advanced Economies’
– World Economic Outlook, July 2015 Update

28
• Advanced Economies –Temporary
setbacks in North America will
drag down growth of the advanced
economies. Ageing population and
declining investments are some
weaknesses. Wage growth and
relaxed financial conditions, lower oil
prices and stronger housing markets,
are strengths. The economic
recovery in the Euro region resulted
in a robust recovery in domestic
demand there and reflects a strong
economic comeback. Japan recorded
a more-than-expected growth in the
first quarter of 2015 supported by a
pickup in capital investment.
• Oil – Oil prices recovered in 2Q2015
reflecting higher demand. Global oil
supply is running well above 2014
levels and inventories are still rising.
The reduction in oil investments
may, however, lead to weaker
activity in North America than
expected earlier.
Local
Growth in 2015 will be determined by
political stability and the priorities of the
Government. Modest growth will be
reported in 2015, with the slowdown
of public sector construction. Political
uncertainty could impede private
investments, but consumption will
increase with the price reductions
on food and fuel. State consumption
will increase recurrent expenditure.
Export industries will benefit from
the economic climate in advanced
economies. Performance of the
agricultural sector is dependent on
the weather, although increases
in government-guaranteed prices
for several agricultural products
are likely to induce increases in
production. Economic growth is likely
to gain pace beyond 2015 following
implementation of new policies by
the Government. Productivity levels
will increase with the adoption of
technology and development of
human resources. Monetary policy
will assist in maintaining inflation at
single-digit levels and fiscal policy will
reduce budget deficits and improve the
Government’s debt profile.
CONSOLIDATED FINANCIAL
REVIEW
Reporting Compliance
The financial performance and position
for the year are based on Sri Lanka
Accounting Standards. The statements
are in line with the requirements of
the Colombo Stock Exchange and the
Companies Act No.07 of 2007.
Revenue
Consolidated revenue for the year
ending 31 March 2015 approached
Rs.40.0 Bn, an increase of 35.3%.
Retail contributed most, making up
31.2% of the Group’s top line, followed
by ICT with 23.5%, Healthcare and
Financial Services with 21.7% and
20.1% respectively.
The boost in the Retail segment
followed the consolidation of Odel’s
results for five months of the year.
Expansions in Consumer Durables,
apparel and restaurants added to
the growth. ICT sector performance
reflected the success of our recently
Management Discussion & Analysis
Projections
Local 2015E 2016E 2017E 2018E
GDP (Market Prices - Rs. Bn) 11,080 12,447 14,044 15,853
Annual Average Inflation (%) 3% 4% 4% 4%
Per Capita GDP (USD) 4,009 4,469 4,997 5,624
Current Account Balance (% of GDP) -1% -1.4% -1% -1%
Overall Budget Deficit (% of GDP) -4.4% -4.2% -4.0% -3.8%
Growth in credit to private sector (%) 15.5% 15% 15% 15%
Source : Central Bank of Sri Lanka
‘Going forward, the Sri Lankan
economy is projected to reach
upper middle income levels
and sustain the favourable high
growth and low inflation nexus in
the medium term, supported by
appropriate economic policies.’
- Central Bank of Sri Lanka
Revenue
(Rs. Mn)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2011 2012 2013 2014 2015

29
commissioned ‘Samsung’ operations,
while ‘Microsoft Lumia’ handsets and
‘Dell’ computers also contributed.
Healthcare Services maintained steady
growth, with continuous investment
in state-of-the-art facilities during the
year, including Cardiac Centre, Beauty
Central, Bi-planer Catheterisation
Lab, Digital Mammography and
Bone Marrow transplant facilities.
Financial Services reflected healthy
performances of Asian Alliance
Insurance, Asian Alliance General
Insurance, Softlogic Finance and
Softlogic Stockbrokers.
Results from Operating Activities
Gross Profit grew 28.2% to Rs.14.1
Bn for the year, despite slight erosions
in margins as a result of product and
channel mix in the Retail and Healthcare
sectors.
Other operating income reflected a
significant Rs.1.2 Bn for the year (up
133.8%). The increase was led by the
gain on disposal of investments by
Asian Alliance Insurance, and fees on
new loans at Softlogic Finance.
Operational costs, at Rs 11.0 Bn,
accounted for 27.9% of turnover,
against 27.0% last year. Administrative
expenses made up 81.7% of these
costs, growing 41.4% to Rs.9.0 Bn for
the year, while distribution expenses
grew 33.4%, to Rs.2.0 Bn.
Our operating model has proved
effective throughout. Softlogic has a
history of acquisitions and business
formations which are analysed by
our Strategy team, with strategies
emphasising synergy implemented
post-acquisition.
Operating Profit for the year was Rs.4.3
Bn, reflecting a strong increase of
17.3%.
Of the six sectors, the highest
contribution to consolidated operating
profit came from Healthcare Services,
a contribution of 42.6% for the year,
followed by Financial Services which
contributed 24.0%. Compared to
the previous year, the wholly owned
sectors, Retail and ICT improved their
contributions significantly, to 20.7%
and 16.6% respectively. We expect the
improvement to continue as synergies
and cost discipline, and the growth
impetus at retail strengthens. The
performance of the Automotive sector
faced challenges, but measures have
been taken to turn the business around.
The Leisure sector sees positive
indications from its newly opened
resort Centara Ceysand, and Movenpick
City Hotel nearing completion.
Net Finance Expenses
Net debt, comprising short- and
long-term interest bearing borrowings
(overdrafts included) less cash and
cash equivalents, increased 34.2% to
Rs.36.6 Bn as at 31 March 2015, from
Rs.27.3 Bn a year before. The increase
was primarily driven by the Odel
acquisition (cost Rs.5.6 Bn), while other
investments, expansions and working
capital needs absorbed the balance.
Stabilisation of interest rates at a lower
level supported our growth strategy.
Finance expenses for the year rose only
by 1.2%, to Rs.2.7 Bn. Finance income
declined 3.0% to Rs.1.1 Bn. A marginal
decline in mark-to-market gains on
Asian Alliance Insurance’s investment
portfolio contributed to the reduction.
The life insurer’s fixed income also
declined, with fluctuations of interest
rates in the treasury/ bond market.
EBITDA
(Rs. Mn)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2011 2012 2013 2014 2015
Profit Before Tax
(Rs. Mn)
0
500
1,000
1,500
2,000
2,500
2011 2012 2013 2014 2015

30
Taxation
Tax expenses increased 80.5% to
Rs.449.6 Mn, compared with Rs.249.2
Mn last year. The effective tax rate
remained at 19.8%.
Profit after Taxation
Consolidated Profit after taxation
for the year reached Rs.1.8 Bn, an
improvement of 80.3%. Consequently,
net profit margins improved to 4.6% for
the year from 3.4% last year. Earnings
per share for the year increased to
Rs.0.7 from Rs.0.2 last year.
The result was boosted by a Rs.513.4
Mn fair value gain on the property of
Asiri Central Hospitals, which has since
been realised on its sale.
Non-Controlling Interest
Non-Controlling Interest share of profit
increased 48.1% to Rs.1.3 Bn, due to
increased earnings in the Healthcare
and Financial Services sectors.
It is noteworthy though, that this
share of profit reduced to 69.4%, from
84.6% last year, we expect the trend to
continue as performances of our fully
owned sectors - Retail, ICT and Leisure
- improve.
Comprehensive Income Statement
Revaluations of the property of Central
Hospital (Rs.369.6 Mn). Currency
translations of Softlogic Australia’s
operation resulted in a gain of Rs.48.5
Mn. Total comprehensive income
amounted to Rs.2.2 Bn for the year,
against Rs.1.2 Bn last year.
Management Discussion & Analysis
Five -year Cash allocation
Y/E 31 March 2011 2012 2013 2014 2015
Purchase and construction of property, plant and equipment (244.55) (1,064.26) (2,258.47) (3,459.16) (4,023.08)
Addition to prepaid lease rentals - (65.00) - - (702.52)
(Purchase) / disposal of short term investments (Net) (181.2) 524.3 263.1 469.1 3,007.2
Addition to intangible assets (0.22) (155.03) (8.38) (305.01) (71.18)
(Increase) / decrease in other non current assets (165.89) 0.15 (69.65) (63.14) (114.59)
Dividends Received - 90.47 145.01 146.29 141.86
(Purchase) / disposal of other non current financial assets - (1,144.54) (1,603.70) (1,989.24) (858.86)
Proceeds from disposal of controlling interest - - 28.90 - 347.86
Increase in interest in subsidiaries (12.96) - - - -
Increase in interest in associate (807.72) - (1.25) - -
Acquisition of business, net of cash acquired (3,272.82) (4,240.02) (183.98) - (5,817.19)
Proceeds from sale of property, plant and equipment 65.31 58.69 129.30 91.40 124.17
Net outflow of investing activities (4,720.1) (5,995.3) (3,559.1) (5,109.8) (7,966.3)
Profit After Tax
(Rs. Mn)
0
500
1,000
1,500
2,000
2011 2012 2013 2014 2015
Total Assets
(Rs. Mn)
0
20,000
40,000
60,000
80,000
100,000
2011 2012 2013 2014 2015

31
Cashflow
Cash and cash equivalents increased
by Rs.3.9 Bn to Rs.5.6 Bn at 31 March
2015. Net cash flow from operating
activities decreased by Rs.1.4 Bn to
Rs.425.9 Mn. The most significant
contributor in this respect was the
increase in loans and advances granted.
Net cash outflow on investing activities
increased by Rs.2.9 Bn to Rs.8.0 Bn
during the year. Major contributors
were the increased investment in
Property, Plant and Equipment, and the
acquisition of Odel. Net cash flow from
financing activities increased by Rs.6.1
Bn to Rs.11.5 Bn due to increased long
and short term borrowings.
PROGRESSIVE OUTLOOK
Interest and exchange rates stabilised
during the year, which also saw
continuing low inflation. Our six sectors
generally performed to expectations,
with the Retail cluster emerging
stronger following Odel’s acquisition.
With the conclusion of the Presidential
and General Elections, political stability
has been achieved. However, we are
waiting for policy reforms of the new
regime. Interest and exchange rates
stabilised during last financial year
coupled with low inflation. Other macro
elements too supported our business
story. Our six sectors performed
within our expectations with the Retail
cluster emerging stronger following
the acquisition of Odel. Given our
debt funded acquisition, we may
consider replacing debt with equity
should a change in the macroeconomic
environment takes shape prompting
a prudent rebalancing of the portfolio.
We believe that with policy stability, a
fast moving economy would ensure the
multiplier effect of growth which then
will naturally accompany the principle
of intrinsic value creation inherent in
our diversified business model; this will
propel the Group to a new unparalleled
height.

32
Retail Sector
Apparel business offers
authentic brands. Consumer
durables offer quality, value for
money and easy reach.
We have developed a distinctive retail strategy in the consumer
durables space, and in the premium clothing and accessories segment.
Our apparel business offers authentic brands, while our consumer
durables offer quality, value for money and easy reach.
Our Furniture stores are the deﬁnitive provider of contemporary furniture
and home accessories including bedding, cutlery and home décor.
Our entry into fast foods has been a success, with BURGER KING®
becoming one of the top choices of consumers. Our Quick Service
Restaurant (QSR) operation extended its reach during the year, while

33
also expanding its menu. Restaurants
were opened in Kandy and at the
Colombo Airport, Central Hospital
and Arcade at Independence Square.
BURGER KING®
was recognised as Sri
Lanka’s Best New Market in Restaurant
Excellence at the 2014 Asia Paciﬁc
Convention.
We added ‘Whirlpool’ to our range
during the year, and also now
retail ‘Samsung’ products from our
telecommunication subsidiary.
A restructuring took place after the
Odel acquisition so we could capitalise
on synergies. Odel is now the holding
company of our fashion and apparel
businesses with Softlogic Retail being
the parent of all businesses covering
consumer durables, furniture and
apparels.
Store Expansion Brand Authenticity Increasing Footfall
SOFTLOGIC HOLDINGS PLC
SOFTLOGIC RETAIL (PVT) LTD.
Retailer of Consumer Durables and Furniture
SOFTLOGIC RESTAURANTS (PVT) LTD.
Quick Service Restaurant chain
operating BURGER KING®
restaurants’
DAI-NISHI SECURITIES
(PVT) LTD.
Non-operating subsidiary
ODEL PLC
Chain of retail
departmental stores
SILK ROUTE FOODS (PVT) LTD.
Restaurant at the
Colombo Airport
SOFTLOGIC BRANDS (PVT) LTD.
Branded apparel stores.
OTHER ODEL SUBSIDIARIES
Manufacturing products
for Odel and supporting
services -- premises, logistics,
warehousing, IT and other
business services
Revenues
reached Rs.12 Bn,
up 64%,
for the year

35
INDUSTRY REVIEW
Sri Lanka has a significant-sized
population of some 21 Mn.
Increases in Sri Lanka’s retail spend are
closely correlated with growth in GDP.
Private Consumption Expenditure (PCE)
on clothing and footwear grew 15.4%
in 2014, rising to 5.7% of PCE. A per
capita GDP of USD5,624 is projected in
2018, up from USD3,625 in 2014. This
portends a significantly higher retail
spend in the future.
Increasing and changing consumer
needs have catalysed the development
of retailing in the country. There are a
small number of organised players in
the sector. These established players
continue to pursue market penetration
strategies, focusing on hitherto
untapped regions of the country.
Today’s shoppers, Sri Lankans as well
as tourists, are more conscious in their
buying decisions, seeking value for their
money and therefore the best deals
available. They are also shifting their
channel of purchase from physical visits
to virtual stores.
COMPANY REVIEWS
Softlogic Retail (Pvt) Ltd.
Demand for consumer durables and
aspirational goods showed clear growth
during the year. This was seen in rural
areas as well as in metropolitan areas.
The Consumer Durables market was
stable, with favourable exchange rates
and interest rates helping. Relaxed
credit fueled consumer growth, as
did increased cash in the hands of
consumers. We used a number of
sales strategies to hold our own against
competitors. Competitive pricing,
interest-free hire purchase facilities,
tie- ups with banks for interest-free
FY15 FY14 % YoY FY13
Profitability
Revenue (Rs. Mn) 12,334.3 7,538.7 63.6% 5,647.1
EBITDA (Rs. Mn) 1,112.5 693.7 60.4% 750.7
EBT (Rs. Mn) 340.7 192.1 77.4% 364.5
PAT (Rs. Mn) 271.2 153.5 76.7% 282.6
No. of Employees 1,863 805 746
Financial Position
Total Assets (Rs. Mn) 22,368.8 9,034.6 147.6% 6,511.4
Total Equity (Rs. Mn) 6,904.4 1,746.2 295.4% 1,088.5
Total Debt (Rs. Mn) 10,560.3 3,620.9 191.6% 3,359.4
Capital Employed (Rs. Mn) 17,464.7 5,367.1 225.4% 4,447.9

36
instalment schemes, and an effective
sales team ensured growth during the
year. Softlogic’s distribution network is
a key strength which we are resolutely
building on to achieve territorial
expansion.
A stronger contribution is expected
from the furniture segment in the
future, as we have recently begun
representing ‘Natuzzi Italia’ - a large
furniture house with a strong global
reach, having 7 manufacturing plants
and more than 1,200 points of sale
worldwide.
Softlogic Brands (Pvt) Ltd.
We are Sri Lanka’s only fashion
retailer, holding exclusive rights for
leading international brands which are
trend setting and enjoy widespread
brand loyalty and quality acceptance.
We added a number of franchise
partnerships during the year – ‘Tommy
Hilfiger’, ‘Crocs™’ and ‘Pepe Jeans’
were introduced most recently. This
has assisted us in driving the market
and establishing Softlogic Brands as
a leading fashion retailer in Sri Lanka.
The Odel acquisition confirmed our
commitment to the local fashion market.
Softlogic Restaurants (Pvt) Ltd.
This company holds the master
franchise for BURGER KING® in Sri
Lanka. BURGER KING ® is the world’s
second largest hamburger chain serving
over 11 Mn guests per day across 91
nations. We opened seven restaurants
– in Kollupitiya, Rajagiriya, Mount
Retail Sector
Market Penetration Strategy
Fold 01
Metropolitan and Urban Reach
Upscale ‘Softlogic Max’ stores, with
industry-best visual merchandising and
sales practices. These stores have an
average retail space of 4,500 sq.ft.
There are 12 ‘Softlogic Max’ stores in prime
city locations.
Fold 02
Rural Reach
Softlogic and mini showrooms, easily and
quickly set up, target rural markets. These
have retail space ranging between 800-1,500
sq.ft. We also encourage the sales concept
of ‘travelling bags’ taking our products to
doorsteps across the island. We have 194
Softlogic and mini showrooms islandwide.
Number of Consumer Electronics showrooms
(includes 02 ‘Samsung’ flagship stores)
208
Total Retail Space (Sq. ft) 263,714
Targeted showroom count by 31 March 2016 250
Targeted Retail Space by 31 March 2016 (Sq. ft) 303,714

37
Lavinia, and Kandy, and at the Arcade
Independence Square, the Central
Hospital, and the Colombo Airport --
within a year of operation.
PROGRESSIVE PERFORMANCE
The Retail sector recorded a revenue
growth of 63.6% during the year to
Rs.12.3 Bn, five months of Odel’s
revenue being consolidated in
Group turnover. The year began with
unfavourable weather conditions
impacting the purchasing power of
customers. The situation reversed with
a good harvest, and Government actions
putting more money in consumers’
hands. Favourable interest and exchange
rates helped.
The Sector’s operating profits grew
47.8% to Rs.878.3 Mn in FY2014/15.
An increase of 20.0% in finance costs
was primarily due to the acquisition of
Odel and increases in working capital
consequent to expanding activity. Profit
before tax increased 77.4%, to Rs.340.7
Mn for the year, contributing 15.0% to
the Group. The sector completed the
year with a bottom line of Rs.271.2 Mn,
reporting a strong increase of 76.7%.
PROGRESSIVE OUTLOOK
The retail industry is set for a steady
run in the next years, with a growing
consumer preference for authentic
brands and a shift towards organised
trade taking shape.
Tourists have been a target audience for
us. The average tourist stay in Sri Lanka
in 2014 was 10 days, and the average
spend USD161 per day. It is estimated
that 55% of this spending is on food
and lodging, while the balance is on
shopping. Given the country’s ambitious
tourist arrivals target of 2.5 Mn for 2018,
we believe this market will contribute
strongly to the retail industry in future
years.
Domestic purchases have by no means
slowed down. Sri Lanka’s growing
middle-class population and changing
spending patterns favouring branded
products and the organised retail sector
is expected to help keep retail demand
upbeat in the upcoming years. Colombo,
as the commercial capital of the country,
has enormous retail potential and is
expected to witness significant retail
development.
Softlogic Retail will continue with its
expansion strategy, while Softlogic
Brands has successfully signed
exclusive distributorship agreements
with many other international brands.
‘Peter England’, ‘Van Heusen’, ‘Louis
Philippe’, ‘Only’, ‘Jack & Jones’, ‘Vero
Moda’, ‘Puma’ and ‘Allen Solly’ are
new apparel brands with Softlogic. We
will also introduce Luxottica’s eyewear
portfolio inclusive of ‘Prada’, ‘Alain Mikli’,
‘Armani Exchange’, ‘Arnette’, ‘Burberry’,
‘Bvlgari’, ‘Chanel’, ‘Coach’, Dolce &
Gabbana’, ‘Emporio Armani’, ‘Giorgio
Armani’, ‘Michael Kors’, ‘Miu Miu’,
‘Oakley’, ‘Polo Ralph Lauren’, ‘Tiffany &
Co.’, ‘Tory Burch’, ‘Versace’ and ‘Vogue
Eyewear’.These brands will be retailed
in exclusive showrooms as well as in our
departmental stores – Odel and Galleria.
Our QSR chain will continue to expand
its presence in prime city locations.
THE ODEL MALL
Studies reveal that Sri Lanka’s per
capita mall stock versus its per capita
income of the country is relatively low
within the region. Colombo has about
8 limited space malls with around 10
in the pipeline. Considering the Sri
Lankan preference for organised retail
space, the paucity of outlets in existing
malls and the relatively few malls in
the pipeline, the idea of an Odel mall
concept came to life. Odel’s mall in the
prime Colombo location it occupies, will
add to retail dynamism in the country.
This 400,000 sq.ft mall will be in
operations by 2018.
Number of Branded Apparel Stores 17
Total Retail Space of Branded Apparel Stores (Sq.ft) 38,358
Number of Odel Stores 20
Odel Retail Space (Sq.ft) 108,118

38
THE STORY OF THE ACQUISITION OF ODEL
Odel is one of the largest retailers of apparel and
fashion lines in Sri Lanka, with its brand ideals of
satisfying “Mind, Body & Soul”. The company
focuses on creating fashion trends and delivering
value to its shoppers by offering compelling
selections of local and imported apparel, fashion
accessories and footwear, and a home store. Odel
is the country’s strongest local fashion brand and
serves a broad spectrum of customers.
Softlogic was offered the 44.5% of the shareholding
of the promoters of Odel, in September 2014.
The cost of accepting the offer, at a price of Rs.22.0
per share was approximately Rs.2.7 Bn. As required
by the Company Takeover’s and Mergers Code
1995 as amended in 2003, a joint offer was then
made by Softlogic Holdings and Softlogic Retail to
the other shareholders. Parkson Retail Asia Limited,
who held 47.46% of the share capital accepted the
offer. Taking note of other acceptances also, a total
of Rs.5.6 Bn, shared between Softlogic Holdings
and Softlogic Retail, was ultimately invested in
acquiring a 93.39% stake in the company.
Household name in
Sri Lanka’s retail market,
attracting c.3,500 footfalls
on weekdays and over
5,000 on weekends

Odel has achieved a high
level of visibility in Colombo
and other urban areas, as
shown below
Rationale for the acquisition
Odel is a household name in the Sri Lankan
apparel market, attracting approximately
3,500 footfalls on weekdays and over 5,000
on weekends. Softlogic Holdings through its
subsidiary, Softlogic Brands, possesses the
largest international branded apparel and fashion
accessory portfolio in Sri Lanka. These lines
complement Odel’s range of products excellently
• Colombo 07
• Majestic City
• Katunayake Airport
• Ja-Ela
• Kohuwela
• Crescat
• Nugegoda
• Mount Lavinia
• Panadura
• Moratuwa
• Battaramulla
• Kiribathgoda
• Kandy
• Wattala
• Dutch Hospital
• Queens
• Negambo
• Galle

40
when they are combined, giving the
shopper a unique experience.
The addition of Odel to our business
portfolio has already created signiﬁcant
synergies through:
• Odel’s footfalls becoming available
to Softlogic‘s branded apparel and
accessories when those are sold by
Odel.
• Sharing of back-end infrastructure
and optimal use of available retail
store space.
Softlogic Brands has over 35,000 sq.
ft. of prime retail space in Colombo,
in which 19 brands are retailed. The
combination of this with Odel’s makes
us a very powerful player.
Odel owns a large land area in
Ward Place, Colombo 07, whose
underutilised area is planned to be
converted to a high-end mall, in which
rental space is priced at a premium. It
also holds land in Battaramulla, which is
planned to be disposed of.
FUTURE – OUR PATHWAY TO
FURTHER SYNERGIES
Ownership Changes
A change of ownership was in effect
with Odel becoming the holding
company of the apparel and fashion
businesses of Softlogic. The transfer of
Softlogic Brands from Softlogic Retail
was based on an independent valuation
of Softlogic Brands. The stake in Odel
held by Softlogic Holdings has been
transferred to Softlogic Retail, making
Softlogic Retail the parent of Odel.
Synergetic effects have been evident in
Odel’s post acquisition (2HFY2014/15)
period with the operational cost base
improving signiﬁcantly. We expect that
these changes will further help realise
the synergies of shared expertise,
overhead rationalisation and retail
space/ revenue optimisation.
Wider brand choice under one roof
Odel has been a favourite shopping
centre for Sri Lankans, expatriates and
foreign visitors. This retailer has been
the one to attract customers from both
middle and high income categories
selling a good mix of exclusive as well
affordable quality range of various
related-products. Building on these
strengths, we have gradually housed
some of our own international apparel
section at Odel. Odel was already
selling Nike and Levis products, and
our international watch range, before
the acquisition. All our apparel brands
other than Charles & Keith and French
Connection have now been placed at
Odel.
We also plan to offer other leading
local brands at Odel. Our aspiration
The story of the acquisition of Odel PLC

41
is to make Softlogic/Odel, the choice
shopping destination for people across
all strata of society.
The Odel Mall
Shopping malls are popular in Sri Lanka
with the greater sophistication and
international awareness of customers
and the convenience malls offer. We
will be constructing a premier shopping
mall using German designers at Odel’s
ﬂagship store at Kannangara Mawatha,
Colombo 07. The present Odel store
would continue its operations with the
mall being planned at the under-utilised
land base. Top German designers and
architects have already developed the
blue print of this mall. This mall will
feature an extensive retail space to
house some of the best known brands
both locally and abroad to better cater
to local and international tourists and
retail customers.

42
Healthcare
Services Sector
Core focus is on upgrading
technology and assembling
the best team of medical
professionals we can, to
contribute to the highest quality
standards possible.
‘Asiri’ has established and is consolidating its presence as one of the
foremost private healthcare provider in Sri Lanka. The hospitals have
continuously invested to keep up with global trends. Asiri’s consultants
and the medical expertise it offers are its core strengths.

43
Leading healthcare
provider in Sri Lanka
State-of-the-art
medical facilities
Well-trained Medical
Professionals
ASIRI HOSPITAL HOLDINGS PLC
108-bed hospital at Kirula Road, Colombo 5.
ASIRI SURGICAL
HOSPITAL PLC
147-bed hospital at
Kirimandala Mawatha,
Colombo 5.
ASIRI CENTRAL HOSIPTAL
LTD.
Not operational
CENTRALHOSPITAL LTD.
228-bed hospital at Norris
Canal Road, Colombo 10.
ASIRI DIAGNOSTICS
SERVICES (PVT) LTD.
A joint venture to oversee
laboratory services in the
Central Province
DIGITAL HEALTH (PVT)
LTD.
A joint Venture with
Dialog Axiata PLC
ASIRI HOSPITAL KANDY
(PVT) LTD.
Hospital under
construction in Kandy.
ASIRI HOSPITAL MATARA
(PVT) LTD.
62-bed hospital in Matara.
INDUSTRY REVIEW
The private healthcare sector in Sri
Lanka is growing rapidly. The large-
scale private healthcare providers
have invested in technological
advancements, research and
innovation. The State’s healthcare
services are under-resourced and lack
advanced medical treatment facilities.
In 2014, 221 registered private hospitals
with 5,776 beds operated. This
included 10 Ayurvedic hospitals with 90
beds. Accessibility to leading medical
consultants and advanced technologies
without a wait, and the increasing
popularity of health insurance, have
supported the growth of private
healthcare. Private healthcare players
are now not limiting their presence to
the big cities alone, but are moving into
rural regions.
Revenue
increased 11%
to Rs.9 Bn during
the year

44
As healthcare costs increase
elsewhere, more people are now
looking to Medical Tourism. With
potential savings between 25%
and 75% of what it might cost
them otherwise, patients seek Sri
Lanka’s private healthcare service for
high quality and timely treatments.
Sri Lanka’s healthcare sector has
undergone enormous transition in
terms of technology and expertise in
recent years and the country stands
on the threshold of becoming a global
health destination. With this in mind,
private healthcare providers are actively
working on international accreditations.
The need for professional medical staff
is felt by the industry as a whole. Asiri
has taken a step forward by providing
rigorous 3-year training for its nursing
staff, ensuring to generate a steady
stream of qualified and trained staff
to deliver service in keeping with our
philosophy of excellent patient care.
Excellence in nursing care remains a
hallmark of the ‘Asiri’ brand.
The rise of Non-Communicable
Diseases particularly from the
country’s rapidly ageing population has
made private healthcare procedures
conscious of the need to address
this area. Greater awareness of
“wellness” and the need for preventive
health screening and prompt medical
assistance when needed, generated
greater demand across all our hospitals.
Stiff competition has, however, led
to the erosion of margins of private
healthcare providers, as they compete
on price to maintain patient volume.
This has emphasised the need for
continued investment in better
technology even further.
COMPANY REVIEWS
Asiri Hospital Holdings PLC
This 108-bed hospital which started as
a laboratory service provider is now a
specialist in Pediatrics and Maternity,
whilst catering to other branches
of medicine. Asiri Hospital Holdings
operates one of the country’s most
technologically advanced laboratory
facilities, accounting for 13,000 daily lab
tests and some 65% of the market. It is
the market leader through its innovation
and its network of over 400 collection
centres (Including third party collection
points).
To strengthen its dominant position in
laboratory services, a state-of-the-art
laboratory building is to be built adjacent
to the hospital. A facelift is also in
progress. The completion of this Rs.200
Mn project in 2016 will give the hospital
a modern façade, and a building to
house the very profitable pathology and
phlebotomy units.
Asiri Surgical Hospital PLC
With a capacity of 147 beds, this
hospital offers specialised surgical
care and an advanced heart centre,
modern operating theatres and an
urology operating theatre. The specialty
of this hospital has been recognised
worldwide; research papers at several
medical conferences in the past came
from this hospital. Its heart centre
includes a dedicated coronary care unit
with 49 beds, and a surgical ICU with
advanced monitoring systems. The
hospital introduced Sri Lanka’s first
Digital Mammography facility during
the year, making Asiri the first private
healthcare provider to offer advanced
three dimensional breast imaging for
the earliest detection of breast cancer.
The new technology, Tomosynthesis,
is the gold standard in breast cancer
screening and detection. The hospital
also introduced a bariatric surgery
programme for weight management
during the year.
More than fifty Sri Lankans travel
overseas annually for liver transplant
surgery, at great inconvenience and
cost to themselves. Mindful of this, the
Healthcare Services Sector
Profitability
Revenue (Rs. Mn) 8,592.0 7,745.8 10.9% 6,927.4
EBITDA (Rs. Mn) 2,480.4 2,557.3 -3.0% 2,389.5
EBT (Rs. Mn) 1,780.2 1,475.1 20.7% 1,165.2
PAT (Rs. Mn) 1,616.7 1,322.2 22.3% 996.5
No. of Employees 3,802 3,596 3,635
Financial Position
Total Equity (Rs. Mn) 17,349.7 15,885.9 9.2% 15,020.8
Total Debt (Rs. Mn) 8,400.2 8,963.1 -6.3% 6,431.3

45
Group is setting up a dedicated liver
transplant unit at Asiri Surgical Hospital,
which will be operational by end-2015.
Central Hospital Ltd.
This 228-bed hospital is a one-stop,
technologically advanced medical centre
offering diagnostic, therapeutic and
intensive care facilities. Started in 2010,
this hospital has gained recognition as
one of the best in Neuro Sciences in Sri
Lanka. The hospital has 12 ultra-modern
operating theatres for neurosurgery,
maternity, orthopedics, ophthalmology
and genitourinary surgery, and a
sophisticated haemo-dialysis unit. The
hospital has 310 qualified nurses, 182
skilled paramedical staff and more than
300 Consultants treating in- and out-
patients.
Central Hospital has continuously
invested in technology. It conducted the
first ever Bone Marrow Transplant in
June 2014. Patients with hematological
disorders such as Thalassemia can now
be treated locally by Asiri at much lower
cost than overseas. This unit handles
Allogenic Transplants treating blood and
bone marrow related disorders, a boon
for children with Thalassemia especially,
for whom a Bone Marrow Transplant
will in most cases be a lifetime cure.
During the year, the Interventional
Cath-Lab was established here, the first
Bi-planer Catheterisation Laboratory in
Sri Lanka. It is the first in Sri Lanka to
offer Interventional Radiology, where
minimally invasive techniques are
used to diagnose and treat various
pathologies. The high standard of
accuracy in imaging by Bi-planer
DSA unit offers the most promising
outcomes for stroke patients to date,
due to speedy detection of the precise
point of blockage. Bi-planer Digital
Imaging also enables perfect delivery
of chemotherapy to the location
where it is needed in treating cancers,
minimising collateral damage and
potentially adverse side effects.
An advanced Cardiac Centre, with
a Cardio-Catheterization Laboratory
focusing on diagnosis, prevention,
treatment and surgery for heart
diseases was opened in November
2014 with six successful surgeries
being undertaken in its first month.
Asiri also invested in a ‘Beauty
Central’ at Central Hospital, opened in
September 2014. This unit is equipped
with the latest medical technology
and the best specialist team for
treatments including Abdominoplasty,
Nasal Surgery, Breast Augmentation
& Reduction, Liposuction, Acne

46
Treatment, Eyelid Surgery and all
Oculoplastic Surgery.
The hospital is also now installing
the world’s most advanced neuro-
navigational and intra-operational
monitoring system for its patients.
Asiri Central Hospital Ltd.
This hospital ceased operations in
2010 with operations being transferred
to Central Hospital. The land and
building of the hospital at Horton Place,
Colombo 7, was leased to the Army
Hospital until June 2014. The asset was
recognised as held for sale in its books
when an agreement to sell was signed
in respect of the property. The sale was
completed in July 2015.
Asiri Hospital Matara (Pvt) Ltd.
This is a 62-bed facility in the Southern
Province, offering a range of general
and surgical care facilities. It was Asiri’s
first venture outside Colombo.
Asiri Diagnostic Services (Pvt) Ltd.
This is the Group’s laboratory services
in the Central Province, carried out with
a joint venture partner.
Asiri Kandy (Pvt) Ltd.
Our focus is not limited to Colombo.
A 133-bed facility will commence
operation in Kandy in 2018.
Construction of the hospital is to begin
in October 2015.
Digital Health (Pvt) Ltd.
This is a joint venture formed in
August 2015 in partnership with Digital
Holdings Lanka (Pvt) Ltd., a subsidiary
of Dialog Axiata PLC, and Asiri Hospital
Holdings to develop a state-of-the-art
electronic commerce infrastructure for
Sri Lanka’s healthcare sector.
PROGRESSIVE PERFORMANCE
The sector continued to perform well,
and registered growth of 10.9% (to
Rs.8.6 Bn) in revenue, contributing
21.7% to the Group’s top-line. Central
Hospital was the largest contributor to
Group earnings, supported by its strong
market position in the diagnostics
segment. Operating profit declined
marginally to Rs.1.8 Bn, still 42.6%
to the Group’s operating profit. The
sector had finance income of Rs.91.3
Mn, up 85.1% during the year, helped
by the receipt of an advance on the
sale of Asiri Central Hospital’s property.
Finance cost increased 14.8% to
Rs.635.3 Mn, while a fair value gain
of Rs 513.4 Mn was registered on
the Asiri Central Hospital property.
Profit before taxation increased 20.7%
to Rs.1.8 Bn, contributing 78.5% to
Group profit before tax. Profit after
taxation improved 22.3% to Rs.1.6
Bn contributing 88.9% to the Group’s
bottom line.
Healthcare Services Sector

47
PROGRESSIVE OUTLOOK
Ambitious plans reﬂect the sector’s
long term view and its consequent
investment strategy. Our core focus
is on upgrading technology and
assembling the best team of medical
professionals we can, to contribute to
the highest quality standards possible.
The Group is working towards Joint
Commission International Accreditation
(JCIA) for Asiri Surgical and Central
Hospital in 2016. It has already garnered
a substantial share of Maldivian
medical tourists visiting Sri Lanka. We
expect to welcome medical tourists
from other countries going forward,
and are supported in our aspiration by
the investments being made and the
development efforts underway.

48
ICT Sector
Emphasis on 4G adoption,
migration from feature to
smart phones and active
usage of ICT in economic
activities would drive
demand
Our ICT product lines include, but are not limited to, mobile handsets &
accessories, computers, software and hardware solutions.
INDUSTRY REVIEW
IT is one of the largest components of the worldwide spend on
technological products and related services. Global spending on IT in
2014 was some USD3.7 trillion, a 1.9% increase from 2013.

49
Strong Distribution
Network Leading Brands
Technical
Expertise
SOFTLOGIC INFORMATION
TECHNOLOGIES (PVT) LTD.
Software and hardware solutions provider
SOFTLOGIC COMPUTERS (PVT) LTD.
Tailor-made IT solutions provider
SOFTLOGIC BPO SERVICES (PVT) LTD.
ICT service provider to the Group as well as third
parties
SOFTLOGIC AUSTRALIA (PTY) LTD.
Software solutions provider in Australia
SOFTLOGIC COMMUNICATIONS (PVT) LTD.
Handles ‘Nokia’ and ‘Microsoft Lumia business
SOFTLOGIC COMMUNICATION SERVICES (PVT) LTD.
Service arm of Softlogic Communications (Pvt) Ltd
SOFTLOGIC INTERNATIONAL (PVT) LTD.
Authorised dealer for Dialog Axiata PLC and retailer
for ‘Samsung and Nokia / Microsoft Lumia operations
SOFTLOGIC MOBILE DISTRIBUTION (PVT) LTD.
Handles the ‘Samsung’ operations
Revenue
of Rs.9 Bn,
improvement
of 55%

50
With Government acting to improve
IT literacy in the country, Sri Lanka’s IT
market has experienced double-digit
growth over the last several years. IT
has become essential to households
and corporates, and non-availability
of a proper IT infrastructure makes
businesses dysfunctional and less
competitive. The B2B IT business
has therefore experienced significant
growth for several years.
The recent past has seen major
improvements in the country’s internet
services. Internet penetration in 2014
grew 67.3%, raising internet availability
to 16.4 per 100 persons. This was
driven by mobile internet connections,
which grew by 85.8%.
Sri Lanka is ranked 16th in the Global
Services Location Index, which
assesses off-shoring destinations
for services such as IT support. The
industry targets USD5 Bn in export
revenue from the IT-BPO sector by
2022, and we believe our IT businesses
will benefit from the trickle-down
effects.
The telecommunication industry in
Sri Lanka has evolved significantly.
There was exponential growth in smart
phones especially, driven by aspirations
and short product life-cycles. According
to the International Data Corporation,
the mobile phone market in Sri Lanka
reached 1 Mn in the last quarter of
2014, smart phones accounting for
approximately 22% of this volume. The
data excludes “grey” imports coming
into the country through irregular
channels.
COMPANY REVIEWS
Softlogic Communications (Pvt) Ltd.
Nokia, now a part of Microsoft, is a
world leader in telecommunications,
driving the growth and sustainability of
the broader mobile industry. Softlogic
Communications is the national
exclusive distributor for its handsets in
Sri Lanka since 2000. Our distribution
network remains a core strength, with
over 2,000 retail points island-wide.
This network includes seven retail
showrooms in Colombo and seven in
other parts of the country.
Following the acquisition of the Nokia
Devices and Services business by
Microsoft, the smart phone range
was rebranded-‘Microsoft Lumia’
in November 2014. The company’s
smart phone range, ‘Microsoft Lumia’,
continued to perform strongly, while
demand for ‘Nokia’ feature handsets
stands undisturbed. Microsoft / Nokia
stands third in the smart phone market,
with close to a 9% market share.
Softlogic Communication Services
(Pvt) Ltd.
This is the authorised service partner
of Softlogic Communications. The
company has six Care Centres, in
Colombo, Kandy, Kurunegala, Galle,
Anuradhapura and Ratnapura, delivering
convenient and comprehensive
after-sales service. This company’s
performance is closely correlated with
that of Softogic Communications.
Softlogic Mobile Distribution (Pvt)
Ltd.
Our newest telco company holds
distributor rights for one of the
world’s best-known handset brands—
SAMSUNG—in Sri Lanka. The
company operates through 13 regional
distributors. With an approximately
30% share, Samsung leads the market
in smart phones. Samsung remains
one of the most favoured smart phone
brands in the country.
This company has been very
successful, and is expected to be a
driver of the ICT sector’s future growth.
Profitability
Revenue (Rs. Mn) 9,252.0 5,982.3 54.7% 6,283.8
EBITDA (Rs. Mn) 766.2 543.2 41.1% 719.0
EBT (Rs. Mn) 408.1 29.8 1270.5% 183.0
PAT (Rs. Mn) 270.6 19.4 1296.0% 168.3
No. of Employees 887 805 727
Financial Position
Total Equity (Rs. Mn) 1,400.2 1,266.5 10.6% 678.5
Total Debt (Rs. Mn) 3,217.5 2,764.4 16.4% 3,145.3
ICT Sector

51
Softlogic International (Pvt) Ltd.
Softlogic International, which operates
27 franchise service centres, is the
Authorised Business Partner for Dialog
Axiata, offering corporate and individual
GSM packages, DTV, CDMA & HSPA
connections and provides customer
service. This fits well in Softlogic’s
repertoire.
Softlogic International also retails
‘Nokia/ Microsoft Lumia’ and ‘Samsung’
handsets, operating a phone gallery in
Colombo.
Softlogic Information Technologies
(Pvt) Ltd.
The company is the leading importer
of personal computers in Sri Lanka. It
also markets and distributes notebook
computers, servers, storage, network
infrastructure and printers. It strives to
provide the world’s best products and
services to its customers, consolidating
its market leadership.
This B2B business has very competent
IT consultants and engineers in its
Enterprise Solutions team. We also
provide outsourced IT services to
a wide clientele. Our Engineering
Services team provides engineering and
consulting services to a host of clients,
and includes experts in all the relevant
areas.
Softlogic Computers (Pvt) Ltd.
This company provides a wide range
of tailor-made solutions, and occupies
a profitable niche serving the retail,
hospitality, banking, and financial
services markets.
Softlogic BPO Services (Pvt) Ltd.
Established in 2013, Softlogic BPO
Services is creating a Centralised
ICT Services Unit aimed at giving the
highest quality ICT services to the
Group, via a fully integrated software
platform. In doing this, the company
seeks to help all Group businesses
leverage the potential of IT to achieve
long-term competitive advantage.
Additionally, Softlogic BPO Services
provides ICT consultancy and bespoke
MIS solutions to third party clients in Sri
Lanka and overseas.
Softlogic Australia (Pty) Ltd.
This is Softlogic’s overseas subsidiary,
a leading software solutions provider
catering primarily to the needs of
healthcare and age-care clients in
Australia, and serving over 50 clients in
these areas. Its flagship Chefmax food
services suite is implemented in many
reputed state and private hospitals
and is well known amongst healthcare
professionals.

Softlogic Holdings PLC

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