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Hemas Holdings PLC investor presentation 2015/16

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Hemas Holdings PLC investor presentation 2015/16

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Hemas Holdings PLC investor presentation 2015/16

  1. 1. Investor Presentation FY 2015/16 1
  2. 2. Contents 2 1 Hemas Business : Revenue and Profitability by Sector 2 History and Milestones 3 Consolidated Group Performance for FY 2015/16 4 Consumer 5 Healthcare 6 Transportation 7 Leisure 8 Sustainability 9 Vision 2020
  3. 3. Hemas is a Wellness, Leisure and Mobility Business with LKR 38 billion in revenues 3 Revenue Segmental Revenue and Operating Profits, FY 2015/16 Operating Profit (Rs. Mn) FY 2015/16 Consumer 1,768 Healthcare 1,780 Leisure 255 Transportation 499 Other (342) Total 3,960 Consumer 38% Healthcare 42% Leisure 9% Transportation 5% Other 6% -500 0 500 1000 1500 2000 Consumer Healthcare Leisure Transportation Other OperatingProfitinLKRMillions
  4. 4. History and Milestones 4 201420132011 Entry into Bangladesh 2007 Entered the Hospital business via Acquisition 20031970s Diversified into travel & tourism 1962 Entered the Consumer business 1948 Founded Hemas Drugs Ltd. Acquired J.L Morison Son & Jones (Ceylon) PLC Exited non-core business Hemas Holdings Listed on CSE
  5. 5. Performance Indicator (Rs. Mn) FY 2015/16 FY 2014/15 % Change Group Revenue 37,978 32,497 16.9% Operating Profit 3,961 3,371 17.5% Profit After Tax 2.926 2,196 33.2% Group Earnings 2.653 1,927 37.7% Performance Indicator FY 2015/16 FY 2014/15 % Change ROE 14.1% 12.9% ROCE 16.8% 14.7% EPS 4.63 3.74 23.9% Net Assets per Share 38.41 30.39 26.3% Share Price (Mar 31) 80.60 73.70 9.3% Market Cap Rs. Mn (Mar 31) 46,147 37,977 21.5% Consolidated revenues for FY 2015/16 was LKR 38 Bn, up 16.9% over the previous year, with Group Earnings up 37.7% Growth coming primarily from strong performance in Consumer and Healthcare sectors. Hemas Holdings PLC, FY 2015/16 • HHL recorded solid performance for FY 2015/16 with consolidated Group of Rs. 38.0 Bn—a YoY growth of 16.9%. • Operating profit reached Rs. 4.0 Bn and Earnings Rs. 2.7Bn, a growth of 17.5% and 37.7% respectively. • Revenue growth was led by the strong performance of our Consumer and Healthcare sectors and additional interest income from the proceeds of the rights issue boosted Earnings. Segmental Earnings, FY 2015/16 5 -400 0 400 800 1,200 1,600 Consumer Healthcare Leisure Transportation Other Rs. Millions
  6. 6. Consumer 6
  7. 7. Hemas Consumer is Sri Lanka’s largest domestic Personal Care business, accounting for 38% of Group Revenues Hair CareOral CareBaby Care Feminine Hygiene Home CarePersonal Wash 7
  8. 8. Hemas entered Bangladesh in 2011, and today we are the number two value-added hair oil brand with Kumarika • Kumarika hair oil has 16% market share in the value added oil segment, with 3-year revenue CAGR of 90%. • 115,000 urban and rural retail outlets reached; distribution reach grown 15% annually. • Operate own distribution, through a network of 140 distributors and over 100 sub-distributors. • 280 sales reps operating in 21 territories. • New product launched under “Kumarika” brand platform: two variants of a science + nature face wash. 0 400 800 1,200 1,600 2,000 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Bangladesh Revenue in Rs. Million 2010/11–2015/16 8
  9. 9. Market leader in personal care, strong iconic brands with international relevance Revenues up by 20% YoY, driven by robust volume growth in personal wash, feminine hygiene and home care. • Portfolio comprises personal care, personal wash and home care products. • Market leader in baby care, hair oil, and beauty soap. • Domestic distribution retail coverage of 80,000+. • Introduced new Gel variants of Clogard along with mouth wash product range and Velvet soap variants “Water Lily & Sea Minerals”, “Honey and Yoghurt.” • Fems, Clogard, Baby Cheramy and Diva brands posted double digit topline growth rates underpinning sector revenue growth. Sector Highlights • Consumer sector reported a total revenue of Rs. 14.3Bn, a 20.2% YoY growth. • Sector performance was driven by strong performance of Bangladesh operation and sales growth across all our major brands in the domestic market, with relatively weak commodity prices for key raw material inputs. Financial Highlights Consumer Revenue and Operating Profit FY 2011/12–2015/16 Consumer Revenue Share, FY 2015/16 9 '- 350 700 1,050 1,400 1,750 2,100 '- 3,000 6,000 9,000 12,000 15,000 18,000 2011/12 2012/13 2013/14 2014/15 2015/16 OperatingProfit-Rs.Million Revenue-Rs.Million Revenue Operating Profit Consumer 37.7%Rest of Group 62.3%
  10. 10. Healthcare 10
  11. 11. Hemas is the largest healthcare company in Sri Lanka with interests in Pharmaceuticals, Hospitals and Diagnostics Pharmaceutical Distribution Rx & OTC Pharmaceutical Manufacturing Hospitals & Diagnostics Network 11
  12. 12. In pharmaceutical distribution, Hemas represents the largest global multinational pharmaceutical manufacturers 650 Employees 35+ Principals 9 Therapeutic Categories 22% Market Share 3000+ Pharmacies 12 Hemas Pharmaceuticals
  13. 13. OTC Own Brands • Lacto Calamine • Gripe Mixture • Baby Cough Syrup • Valmelix Cough Syrup JLM, acquired in 2013, is a market leading Rx manufacturer with leading OTC brands J.L. Morison Son & Jones 33% Earnings CAGR since acquisition Rs. 000’ FY 2014 FY 2015 FY 2016 Revenue 2,638,931 3,025,969 3,714,848 Operating Profit 258,189 324,173 460,516 Earnings 210,757 247,091 351,179 Financial Highlights 13 • Manufactures over sixty formulations of high quality pharmaceutical and OTC products. • Import and distribution of internationally renowned products via our island-wide distribution network. • JLM signed a five year buy-back agreement with the Government of Sri Lanka to provide essential medicines to the National Healthcare system. • JLM revenue and earnings for the year grew by 22.8% and 43.4% respectively supported by the growth of core segments, improved efficiency and capacity gains at plant, and the strength of a newly restructured distribution network.
  14. 14. Hemas is the first hospital chain to take high quality private healthcare to rapidly growing Colombo suburbs • 3 multi-specialty, ACHSI accredited hospitals built on international standards in the North of Colombo, East of Colombo and in the Southern Province. • 3 additional laboratories opened this year; bring network up to 36 laboratories, serving over 500 physicians and addressing a patient population of 5 million. • Through our new corporate polyclinic model, we are locating in large working population environments, with a continued focus on bringing healthcare to the consumer. 14 Wattala 100 beds Thalawathugoda 60 beds Galle 50 beds
  15. 15. Healthcare 42.5%Rest of Group 57.5% Deep experience across healthcare value chain with market leading positions in distribution and diagnostics Sector Highlights Financial Highlights • Healthcare segment of the Group achieved sales of Rs.16.1Bn, a growth of 16.0%. • 8% growth in Pharma distribution revenues indicates encouraging performance, during a period of significant regulatory change in the pharmaceutical industry. • Increased demand for private healthcare and health seeking behavior growing demand for diagnostics, all three hospitals recorded a revenue growth of 31.9% YoY. Healthcare Revenue and Operating Profit FY 2011/12–2015/16 Healthcare Revenue Share, FY 2015/16 15 '- 325 650 975 1,300 1,625 1,950 '- 3,000 6,000 9,000 12,000 15,000 18,000 2011/12 2012/13 2013/14 2014/15 2015/16 OperatingProfit-Rs.Million Revenue-Rs.Million Revenue Operating Profit • Hemas Hospitals opened its first wellness centre to 6,000 plus employees at Colombo’s premier IT park, Orion City. • Wattala and Southern Hospitals were re-accredited by the ACHSI and Hemas Hospital Thalawathugoda obtained its 1st accreditation during the year. • Pharmaceutical business grew Rx and OTC portfolio consistently, adding new principles. • JLM’s buyback agreement and continued focus on distribution efficiency contributed to the growth in sales
  16. 16. Transportation 16
  17. 17. Travel and Aviation OutboundMaritimeLogistics • Hemas offers complete passenger and cargo solutions in Airline Representation and travel related services • Hemas represents airlines Emirates, Malaysia Airline and Maldivian and other major airlines. • Largest GSA operator in passenger and cargo with a market share of 25% and 20%, respectively • Grew Emirates airlines from 1 flight per day to 7 flights per day • 5th in the travel market • Integrated portfolio of container haulage, container yard operations, warehousing, automotive logistics and transportation of project and over-dimensional cargo. • 6 acre container terminal. • Maritime sector acts as a shipping agent providing agency services for our feeder operator. • Far Shipping Lines (FSL) Singapore • Operates the largest feeder service to the Bay of Bengal • Exclusive agent for ‘HC line’ and NVOCC operator ‘Asian Tiger Shipping’ • Appointed General Agents for Evergreen, the fourth largest mainliner with revenues of US$ 4 Bn. • Award winning, IATA accredited travel agency. • Corporate travel service is a network partner of HRG which offers global travel services and hotel reservations. 17 Through our Mobility arm, we are securing new accounts and growing capacity in logistics, warehousing and haulage
  18. 18. Transportation 4.7% Rest of Group 95.3% Our Mobility business had LKR 1.8 billion in revenues for FY 2015/16, a year-on-year growth of 17% Sector Highlights Financial Highlights • Transportation sector revenue of Rs.1.8 Bn reflects a YoY growth of 17.2%, stemming from strong performance of our domestic maritime and logistics business interests. • Logistics business grew through new projects, with our warehouses operating with full capacity and haulage business growing with the car carrier operation. • Aviation businesses continued to experience challenges due to lower yields of ticketing income. • Operating profits grew at a slower rate of 8.2% when compared to the revenue growth rate, due to limited growth reflected in aviation. Transportation Revenue and Operating Profit FY 2011/12–2015/16 Transportation Revenue Share, FY 2015/16 18 '- 85 170 255 340 425 510 595 '- 325 650 975 1,300 1,625 1,950 2011/12 2012/13 2013/14 2014/15 2015/16 OperatingProfit-Rs.Million Revenue-Rs.Million Revenue Operating Profit • Hemas Maritime appointed General Agents for Evergreen Marine Corporation Taiwan, one of the largest feeder carriers servicing the Port of Colombo. • Strategic investments in logistics verticals providing integrated end to end solutions • Good growth in Logistics 3PL business with increased volumes stemming from the container depot which functioned at its optimum level of efficiency.
  19. 19. Leisure 19
  20. 20. Our Leisure business comprises leading travel brands and an inbound leisure business • Serendib Leisure Group of Hotels which, includes four award winning properties with a total inventory of 550 rooms. • The partnership with Minor Hotel Group (MHG) has enabled Serendib Leisure to be the only Sri Lankan hotel chain to manage an international brand, “AVANI”. Coming Soon 20
  21. 21. Leisure 9.0% Rest of Group 91.0% We are investing in Sri Lanka’s tourism boom with a selection of new builds, targeting the upper star class segment of the market YTD revenues of LKR 3.4Bn, with 13.0% increase year on year. • Owner and Manager of ffive properties with a combined room inventory of 563. • Strategic partnership with Minor Hotel Group, a leading Asian hotel chain • During December 2016, we opened our newest hotel property, Anantara Peace Haven Tangalle Resort, this property will establish a new benchmark for luxury travellers to Sri Lanka seeking authentic cultural experiences. • The hotels group revenue grew by 12.2% owing to the strong performance of AVANI Bentota and Hotel Sigiriya • Diethelm Travels recorded a 21% growth in the inbound volume which resulted a 14% growth in the topline. Sector Highlights Financial Highlights • Leisure segment recorded a total revenue of Rs. 3.4Bn for FY 2015/16, registering a 13.0% YoY increase. • The increase was primarily driven by a good overall occupancy rate of 79%. • The first few months of the new hotel Anantara Tangalle has been encouraging. Leisure Revenue and Operating Profit FY 2011/12–2015/16 Leisure Revenue Share, FY 2015/16 21 '- 65 130 195 260 325 390 455 520 585 '- 550 1,100 1,650 2,200 2,750 3,300 3,850 2011/12 2012/13 2013/14 2014/15 2015/16 OperatingProfit-Rs.Million Revenue-Rs.Million Revenue Operating Profit
  22. 22. Sustainability 22
  23. 23. Enriching lives through the spirit of Abhimana • Abhimana’ is our ethos of sustainability that describes our vision of a sustainable and co- operative society, of people living and working together • Inline with this, we have released our Sustainability Report providing insight into the Group’s sustainability philosophy and initiatives in line with the Global Reporting Initiative G4 guidelines (GRI- G4) : http://www.hemas.com/reports • Today, our strategic path is governed not only by how well we develop growing commercial opportunities but also by listening to and responding to the communities of which we are a part. 23
  24. 24. Piyawara • The Hemas ‘Piyawara’ project focuses on early childhood care and development, penetrating the segment by facilitating preschool education for children aged 3 to 5 years, from marginalised communities. • With the mission “to nurture young children with good care in order to provide a solid foundation of a life long journey” 24
  25. 25. Vision 2020 - To be the best at enriching lives • Delighting South Asian consumers with our high quality innovative personal care solutions • Providing excellent healthcare outcomes for all Sri Lankans • Outstanding leisure experiences to the emerging traveler • Driving exceptional mobility solutions for the travel and logistics needs of the nation • While at all times operating true to Hemas Values and our ethos of Abhimana 25 2020 Vision
  26. 26. Thank You CONFIDENTIALITY AGREEMENT: Any confidential information discussed in this presentation shall be used by the receiving party exclusively for the purposes of fulfilling the receiving party’s obligation and for no other purpose except with the consent of the disclosing party. Hemas Investor Relations: Telephone: +94 11 4 731 731 (Ext. 1278) Email: ir@hemas.com Web: http://www.hemas.com Hemas Holdings PLC Hemas House, 75, Braybrooke Place, Colombo 2, Sri Lanka 26

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