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Investor Presentation
For the Six Months Ending September 30, 2016
1
Contents
2
1 Hemas Business : Revenue and Profitability by Sector
2 History and Milestones
3 Consolidated Group Performance for Q2 YTD FY 2016/17
4 Consumer
5 Healthcare
6 Logistics and Maritime
7 Leisure, Travel and Aviation
8 Sustainability
9 Vision 2020
Hemas is a Wellness, Leisure and Mobility
Business
3
Hemas Holdings PLC Business
Segments by Revenue
Q2 YTD FY 2016-17
Segmental Revenue and Operating Profits, Q2 YTD FY 2016/17
Operating Profit (Rs. Mn) Q2 YTD FY 2016/17
Consumer 1,159
Healthcare 1,004
Leisure, Travel and Aviation 169
Logistics and Maritime 141
Other (345)
Total 2,128
Consumer
39%
Healthcare
43%
Leisure,
Travel and
Aviation
9%
Logistics and
Maritime
4%
Other
5%
Hemas Holdings PLC is a Wellness focused
business with interests in Leisure and Mobility.
• In the first half of 2016-17 our revenues were Rs. 20.6
billion and Group Operating profits were Rs. 2.1 billion.
Earnings grew by 47% for the first half of the year.
• Our Healthcare business accounts for 43% of revenues,
and Consumer business comprises 39%. s
Performance Indicator
(Rs. Mn)
Q2
2016/17
Q2
2015/16
% Change
Group Revenue 20,630 18,412 12.1%
Operating Profit 2,077 1,612 28.9%
Profit After Tax 1,599 1,116 43.2%
Group Earnings 1,544 1,050 47.0%
Performance Indicator
Q2
2016/17
Q2
2015/16
%
Change
ROE (%) 13.70% 9.85%
ROCE (%) 16.84% 13.22%
EPS 2.70 1.83 47.54%
Net Assets per Share 40.32 35.55 13.41%
Share Price (September 30) 104.10 85.00 22.47%
Market Cap Rs. Mn (September
30)
59,602 48,666 22.47%
Consolidated YTD Q2 revenues for 2016/17 was LKR 20.6 Bn,
up 12.1% over the previous year, with Group Earnings up 47.0%
Growth coming primarily from strong performance in Consumer and Healthcare sectors.
Hemas Holdings PLC, Q2 YTD FY 2016/17
• HHL and its subsidiaries achieved a consolidated
revenues of Rs.20.6Bn, year-on-year (YoY) growth of
12.1%
• Operating profit reached Rs.2.1Bn and earnings
Rs.1.5Bn, growth of 28.9% and 47.0% respectively.
• Overall the Group has grown well despite lower than
expected economic growth at 3.9%, unfavorable
weather conditions, VAT uncertainty, and increasing
inflation resulting in weakened domestic consumer
demand.
Segmental Earnings
Q2 YTD FY 2016–17
4
-200
0
200
400
600
800
1,000
Consumer Healthcare Leisure
Travel and
Aviation
Logistics and
Maritime
Other
RS.MILLIONS
History and Milestones
5
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
Consumer
6
Hemas Consumer is Sri Lanka’s largest domestic Personal
Care business, accounting for 39% of Group Revenues
Hair CareOral CareBaby Care
Feminine Hygiene Home CarePersonal Wash
7
Hemas entered Bangladesh in 2011, and today we are the
number one 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
300
600
900
1,200
1,500
Q2 2012/13 Q2 2013/14 Q2 2014/15 Q2 2015/16 Q2 2016/17
Bangladesh Revenue in Rs. Million
Q2 YTD 2012/13–Q2 2016/17
8
Consumer
39%Rest of
Group
61%
Market leader in personal care, strong iconic brands with
international relevance
Revenues up by 13.1% YoY, driven by market share improvement in our personal care and personal wash
portfolio.
• Continued Market leadership in baby care, hair oil, and
beauty soap.
• Strong competitive advantage in domestic distribution with
direct retail coverage of 80,000+.
• Recent introductions of new Baby Diaper and 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 business recorded a topline of Rs.8.4Bn for
the first six months, a 13.1% YoY increase over the
previous financial year.
• Our local consumer sector growth is driven by market
share improvement in our personal care and personal
wash portfolio.
• Further, relatively benign commodity prices during the
first half of the year contributed towards the sector gross
margin improvement. Bangladesh.
Financial Highlights
Consumer Revenue and Operating Profit
Q2 YTD FY 2011/12–2016/17
Consumer Revenue Share, Q1 FY 2016/17
9
'-
300
600
900
1,200
1,500
'-
1,500
3,000
4,500
6,000
7,500
9,000
Q2
2012/13
Q2
2013/14
Q2
2014/15
Q2
2015/16
Q2
2016/17
OperatingProfit-Rs.
Million
Revenue-Rs.Million
Revenue Operating Profit
Healthcare
10
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
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
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’ Q2 2015/16 Q2 2016/17
Revenue 1,643,799 1,528,533
Operating Profit 108,413 102,919
Earnings 112,656 90,895
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.
• Rx Pharma portfolio continued to do well benefiting from new product
launches.
• With a view to increasing our focus on our healthcare portfolio, we
have exited from the agricultural supply operations which have been
part of J. L. Morison’s for many years.
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
Healthcare
43%Rest of Group
57%
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.9.2Bn,
a growth of 17.3%.
• Hosptials recorded average occupancy of 53%, with the newest
hospital, Thalawathugoda ramping up significantly.
• Hemas pharmaceutical distribution operation recorded a solid
performance over last year including improved market share.
Healthcare Revenue and Operating Profit
Q2 YTD FY 2011/12–2016/17
Healthcare Revenue Share, Q2 YTD FY 2015/16
15
'-
200
400
600
800
1,000
1,200
'-
1,500
3,000
4,500
6,000
7,500
9,000
10,500
Q2
2012/13
Q2
2013/14
Q2
2014/15
Q2
2015/16
Q2
2016/17
OperatingProfit-Rs.Million
Revenue-Rs.Million
Revenue Operating Profit
• Hemas Hospital Wattala added a new wing with a dedicated
surgical ward comprising of 27 rooms in addition to an
expanded dialysis centre.
• Launched our advanced GE Centre and new surgical
specialties in addition to the installation of its latest state-of-the-
art 128 slice CT scanner.
• 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
Logistics and Maritime
16
MaritimeLogistics
• Integrated portfolio of container haulage, container
yard operations, warehousing, automotive logistics
and transportation of project and over-dimensional
cargo and a 6 acre container terminal.
• Growing base of leading domestic and MNC 3PL
clients.
• Operates the largest feeder service to the Bay of
Bengal
• Representatives of Far Shipping Lines (FSL)
Singapore
• 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.
17
Through our Mobility arm, we are securing new accounts and
growing capacity in logistics, warehousing and haulage
Logistics and Maritime
4%
Rest of Group
96%
Our logistics and maritime business recorded LKR 841 million in
revenues for Q2 YTD FY 2016/17, a year-on-year growth of 93%
Sector Highlights
Financial Highlights
• Hemas maritime and logistics recorded growth of 93.3% over
last year recording a topline of Rs. 841Mn. This growth has
been driven by our new maritime agency, Evergreen.
• The acquisition of this agency gives us a stronger position in
the logistics and maritime space an area where we are now
planning to expand further.
Logistics & Maritime Revenue and Operating Profit
Q2 YTD FY 2015/16-2016/17
Logistics & Maritime Revenue Share,
Q2 YTD FY 2016/17
18
'-
30
60
90
120
150
'-
150
300
450
600
750
900
Q2 2015/16 Q2 2016/17
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.
Leisure, Travel and Aviation
19
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
LTA
9%
Rest of Group
91%
We are investing in Sri Lanka’s tourism boom with a selection of
new builds, targeting the upper star class segment of the market
Q2 YTD revenues of LKR 1.8Bn, with 8.0% increase year on year.
• Owner and Manager of five properties with a combined
room inventory of 563.
• Strategic partnership with Minor Hotel Group, a leading
Asian hotel chain
• Latest addition to the portfolio is Anantara Kalutara opened
in September in which we have a 12% shareholding.
• We continue our efforts to enhance and develop the luxury
travel market in Sri Lanka through our close relationship
with Minor Group.
• Hemas offers also complete passenger and cargo solutions
in Airline Representation and travel related services, and is
the GSA for Emirates Airlines, Malaysian and other major
national airlines.
Sector Highlights
Financial Highlights
• Our Leisure, Travel and Aviation (LTA) business recorded a total
revenue of Rs.1.8Bn, reflecting an 8.4% YoY growth for the first
six months.
• Hotels sector recorded a revenue growth of 5.4% over last year
recording a topline of Rs.754Mn.
• LTA experienced a decline in segmental profitability during the
first six month compounded by losses at Anantara Peace Haven
Tangalle Resort which is in its first full year of operations.
LTA Revenue and Operating Profit
Q2 YTD FY 2011/12–2016/17
Leisure, Travel & Aviation Revenue Share,
Q2 YTD FY 2015/16
21
'-
50
100
150
200
250
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
Q2 2015/16 Q2 2016/17
OperatingProfit-Rs.Million
Revenue-Rs.Million
Revenue Operating Profit
Sustainability
22
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
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
Project Ayati
• Hemas being the largest private sector healthcare Company in Sri Lanka took an initiative to
address a major gap in the national healthcare system by launching the first national center of
excellence for children with disabilities.
• The AYATI center will provide opportunities and hope for children with disabilities to achieve their
maximum potential and be fully integrated into our society.
• This initiative will address a burning national issue prevailing in the country, by establishing a
national center of excellence to provide these children with multidisciplinary care.
• The proposed AYATI center designed by renowned Architect Mr. Channa Daswatte is spread
across 1.5 acres in Ragama with a 42.000 sq.ft floor area.
• The centre will function as a hub with connected spokes to the peripheries within the 25 districts in
Sri Lanka and will pioneer the provision of telemedicine to distant centers within low-resource areas
during the initial phase.
25
First National Centre for Children with Disabilities to be constructed at the Faculty of Medicine
of the University of Kelaniya in Ragama
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
26
2020
Vision
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
27

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Hemas Holdings PLC investor presentation - Q2 2016/17

  • 1. Investor Presentation For the Six Months Ending September 30, 2016 1
  • 2. Contents 2 1 Hemas Business : Revenue and Profitability by Sector 2 History and Milestones 3 Consolidated Group Performance for Q2 YTD FY 2016/17 4 Consumer 5 Healthcare 6 Logistics and Maritime 7 Leisure, Travel and Aviation 8 Sustainability 9 Vision 2020
  • 3. Hemas is a Wellness, Leisure and Mobility Business 3 Hemas Holdings PLC Business Segments by Revenue Q2 YTD FY 2016-17 Segmental Revenue and Operating Profits, Q2 YTD FY 2016/17 Operating Profit (Rs. Mn) Q2 YTD FY 2016/17 Consumer 1,159 Healthcare 1,004 Leisure, Travel and Aviation 169 Logistics and Maritime 141 Other (345) Total 2,128 Consumer 39% Healthcare 43% Leisure, Travel and Aviation 9% Logistics and Maritime 4% Other 5% Hemas Holdings PLC is a Wellness focused business with interests in Leisure and Mobility. • In the first half of 2016-17 our revenues were Rs. 20.6 billion and Group Operating profits were Rs. 2.1 billion. Earnings grew by 47% for the first half of the year. • Our Healthcare business accounts for 43% of revenues, and Consumer business comprises 39%. s
  • 4. Performance Indicator (Rs. Mn) Q2 2016/17 Q2 2015/16 % Change Group Revenue 20,630 18,412 12.1% Operating Profit 2,077 1,612 28.9% Profit After Tax 1,599 1,116 43.2% Group Earnings 1,544 1,050 47.0% Performance Indicator Q2 2016/17 Q2 2015/16 % Change ROE (%) 13.70% 9.85% ROCE (%) 16.84% 13.22% EPS 2.70 1.83 47.54% Net Assets per Share 40.32 35.55 13.41% Share Price (September 30) 104.10 85.00 22.47% Market Cap Rs. Mn (September 30) 59,602 48,666 22.47% Consolidated YTD Q2 revenues for 2016/17 was LKR 20.6 Bn, up 12.1% over the previous year, with Group Earnings up 47.0% Growth coming primarily from strong performance in Consumer and Healthcare sectors. Hemas Holdings PLC, Q2 YTD FY 2016/17 • HHL and its subsidiaries achieved a consolidated revenues of Rs.20.6Bn, year-on-year (YoY) growth of 12.1% • Operating profit reached Rs.2.1Bn and earnings Rs.1.5Bn, growth of 28.9% and 47.0% respectively. • Overall the Group has grown well despite lower than expected economic growth at 3.9%, unfavorable weather conditions, VAT uncertainty, and increasing inflation resulting in weakened domestic consumer demand. Segmental Earnings Q2 YTD FY 2016–17 4 -200 0 200 400 600 800 1,000 Consumer Healthcare Leisure Travel and Aviation Logistics and Maritime Other RS.MILLIONS
  • 5. History and Milestones 5 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
  • 7. Hemas Consumer is Sri Lanka’s largest domestic Personal Care business, accounting for 39% of Group Revenues Hair CareOral CareBaby Care Feminine Hygiene Home CarePersonal Wash 7
  • 8. Hemas entered Bangladesh in 2011, and today we are the number one 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. 0 300 600 900 1,200 1,500 Q2 2012/13 Q2 2013/14 Q2 2014/15 Q2 2015/16 Q2 2016/17 Bangladesh Revenue in Rs. Million Q2 YTD 2012/13–Q2 2016/17 8
  • 9. Consumer 39%Rest of Group 61% Market leader in personal care, strong iconic brands with international relevance Revenues up by 13.1% YoY, driven by market share improvement in our personal care and personal wash portfolio. • Continued Market leadership in baby care, hair oil, and beauty soap. • Strong competitive advantage in domestic distribution with direct retail coverage of 80,000+. • Recent introductions of new Baby Diaper and 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 business recorded a topline of Rs.8.4Bn for the first six months, a 13.1% YoY increase over the previous financial year. • Our local consumer sector growth is driven by market share improvement in our personal care and personal wash portfolio. • Further, relatively benign commodity prices during the first half of the year contributed towards the sector gross margin improvement. Bangladesh. Financial Highlights Consumer Revenue and Operating Profit Q2 YTD FY 2011/12–2016/17 Consumer Revenue Share, Q1 FY 2016/17 9 '- 300 600 900 1,200 1,500 '- 1,500 3,000 4,500 6,000 7,500 9,000 Q2 2012/13 Q2 2013/14 Q2 2014/15 Q2 2015/16 Q2 2016/17 OperatingProfit-Rs. Million Revenue-Rs.Million Revenue Operating Profit
  • 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. 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. 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’ Q2 2015/16 Q2 2016/17 Revenue 1,643,799 1,528,533 Operating Profit 108,413 102,919 Earnings 112,656 90,895 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. • Rx Pharma portfolio continued to do well benefiting from new product launches. • With a view to increasing our focus on our healthcare portfolio, we have exited from the agricultural supply operations which have been part of J. L. Morison’s for many years.
  • 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. Healthcare 43%Rest of Group 57% 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.9.2Bn, a growth of 17.3%. • Hosptials recorded average occupancy of 53%, with the newest hospital, Thalawathugoda ramping up significantly. • Hemas pharmaceutical distribution operation recorded a solid performance over last year including improved market share. Healthcare Revenue and Operating Profit Q2 YTD FY 2011/12–2016/17 Healthcare Revenue Share, Q2 YTD FY 2015/16 15 '- 200 400 600 800 1,000 1,200 '- 1,500 3,000 4,500 6,000 7,500 9,000 10,500 Q2 2012/13 Q2 2013/14 Q2 2014/15 Q2 2015/16 Q2 2016/17 OperatingProfit-Rs.Million Revenue-Rs.Million Revenue Operating Profit • Hemas Hospital Wattala added a new wing with a dedicated surgical ward comprising of 27 rooms in addition to an expanded dialysis centre. • Launched our advanced GE Centre and new surgical specialties in addition to the installation of its latest state-of-the- art 128 slice CT scanner. • 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
  • 17. MaritimeLogistics • Integrated portfolio of container haulage, container yard operations, warehousing, automotive logistics and transportation of project and over-dimensional cargo and a 6 acre container terminal. • Growing base of leading domestic and MNC 3PL clients. • Operates the largest feeder service to the Bay of Bengal • Representatives of Far Shipping Lines (FSL) Singapore • 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. 17 Through our Mobility arm, we are securing new accounts and growing capacity in logistics, warehousing and haulage
  • 18. Logistics and Maritime 4% Rest of Group 96% Our logistics and maritime business recorded LKR 841 million in revenues for Q2 YTD FY 2016/17, a year-on-year growth of 93% Sector Highlights Financial Highlights • Hemas maritime and logistics recorded growth of 93.3% over last year recording a topline of Rs. 841Mn. This growth has been driven by our new maritime agency, Evergreen. • The acquisition of this agency gives us a stronger position in the logistics and maritime space an area where we are now planning to expand further. Logistics & Maritime Revenue and Operating Profit Q2 YTD FY 2015/16-2016/17 Logistics & Maritime Revenue Share, Q2 YTD FY 2016/17 18 '- 30 60 90 120 150 '- 150 300 450 600 750 900 Q2 2015/16 Q2 2016/17 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. Leisure, Travel and Aviation 19
  • 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. LTA 9% Rest of Group 91% We are investing in Sri Lanka’s tourism boom with a selection of new builds, targeting the upper star class segment of the market Q2 YTD revenues of LKR 1.8Bn, with 8.0% increase year on year. • Owner and Manager of five properties with a combined room inventory of 563. • Strategic partnership with Minor Hotel Group, a leading Asian hotel chain • Latest addition to the portfolio is Anantara Kalutara opened in September in which we have a 12% shareholding. • We continue our efforts to enhance and develop the luxury travel market in Sri Lanka through our close relationship with Minor Group. • Hemas offers also complete passenger and cargo solutions in Airline Representation and travel related services, and is the GSA for Emirates Airlines, Malaysian and other major national airlines. Sector Highlights Financial Highlights • Our Leisure, Travel and Aviation (LTA) business recorded a total revenue of Rs.1.8Bn, reflecting an 8.4% YoY growth for the first six months. • Hotels sector recorded a revenue growth of 5.4% over last year recording a topline of Rs.754Mn. • LTA experienced a decline in segmental profitability during the first six month compounded by losses at Anantara Peace Haven Tangalle Resort which is in its first full year of operations. LTA Revenue and Operating Profit Q2 YTD FY 2011/12–2016/17 Leisure, Travel & Aviation Revenue Share, Q2 YTD FY 2015/16 21 '- 50 100 150 200 250 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 Q2 2015/16 Q2 2016/17 OperatingProfit-Rs.Million Revenue-Rs.Million Revenue Operating Profit
  • 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. 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. Project Ayati • Hemas being the largest private sector healthcare Company in Sri Lanka took an initiative to address a major gap in the national healthcare system by launching the first national center of excellence for children with disabilities. • The AYATI center will provide opportunities and hope for children with disabilities to achieve their maximum potential and be fully integrated into our society. • This initiative will address a burning national issue prevailing in the country, by establishing a national center of excellence to provide these children with multidisciplinary care. • The proposed AYATI center designed by renowned Architect Mr. Channa Daswatte is spread across 1.5 acres in Ragama with a 42.000 sq.ft floor area. • The centre will function as a hub with connected spokes to the peripheries within the 25 districts in Sri Lanka and will pioneer the provision of telemedicine to distant centers within low-resource areas during the initial phase. 25 First National Centre for Children with Disabilities to be constructed at the Faculty of Medicine of the University of Kelaniya in Ragama
  • 26. 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 26 2020 Vision
  • 27. 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 27