Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — 1H 2012/13 Earnings Presentation
34 slides from Hemas's earnings presentation, November 2012
Slide 1: Hemas Holdings PLC Investor Presentation 1H 2012/13
HEMAS HOLDINGS PLC Investor Presentation 1H 2012/13
Slide 2: Macro Highlights
HEZ\AS Macro Highlights
Slide 3: Sri Lanka: Macro Highlights
Sri Lanka: Macro Highlights GDP Growth slows to 6.4% 12M T-Bill Rate peaks around 13% 8.2% 8.4% 8.3% 12.88% 13.02% 7.9% 12.48% 11.32% 9.31% 6.4% 7.31% Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Sept 2011 Dec 2011 March 2012 June 2012 Sept 2012 Oct 2012 Rupee recovers after a 20% slip Inflation hovers a
Slide 4: Hemas Group
Hemas Group FMCG Healthcare Leisure Transportation Power Pharma Hotels GSAs Hydro Destination Hospitals Travels Thermal Management Maritime Bio Mass Logistics
Slide 5: 1H Performance Review
1H Performance Review
Slide 6: Hemas Group: A Snapshot
Hemas Group: A Snapshot Share Price (As at 21.11.2012) Rs. 27.90 Market Capitalization Rs. 14.4Bn % of Total Market 0.70% PER 10.2* PBV 1.27 No of Shares 515,290,620 Public Shareholding 28.33% PER Sector & Market PER vs Hemas PER 35.0 30.0 25.0 20.0 15.0 10.0 5.0 - June 2011 Sept 2011 Dec 2011 Mar 2
Slide 7: Hemas Group: Performance Highlights
Hemas Group: Performance Highlights Figures are in Rs. Millions 1H 2012/13 1H 2011/12 % Change Group Turnover 12,886 9,991 29% PAT 771 527 46% Group Earnings 705 486 45% Cash From Operations 110 -45 346% Total Assets 24,419 19,345 26% Shareholders’ Funds 11,359 9,347 22% Capital Employed 18,242 14,7
Slide 8: Consumer Businesses Drive Revenue
Consumer Businesses Drive Revenue Group Turnover Revenue Contribution – 1H 2012/13 Revenue in Annual Revenue Rs. Millions 4% Growth 25,000 25% 29% FMCG 24% Healthcare 20% Leisure 20,000 Transportation Power 4% 15% Other 5% 15,000 35% 10% 10,000 5% Group turnover recorded a 5,000 growth of 29%, YoY
Slide 9: Group Earnings on an Upward Trend
Group Earnings on an Upward Trend Group Earnings Earnings Contribution – 1H 2012/13 Earnings in Annual Earnings Rs. Millions Growth 10% 1,400 40.0% 17% FMCG 30.0% 39% Healthcare 1,200 Leisure 20.0% Transportation 1,000 5% Power 10.0% 800 0.0% 29% 600 -10.0% 400 Group earnings recorded a -20.0% gro
Slide 10: Earnings Growth Boosts ROE
Earnings Growth Boosts ROE EPS and EPS Growth Shareholders’ Funds vs ROE EPS Shareholders’ Funds EPS in Rs. Millions ROE Growth 3.00 40% 12,000 20.0% 2.74 30% 2.50 10,000 2.36 2.33 16.0% 14.6% 20% 13.6% 2.00 8,000 12.3% 12.3% 1.76 10% 11.5% 12.0% 1.51 1.50 0% 6,000 8.0% -10% 1.00 4,000 -20% 4.0% 0.5
Slide 11: FMCG
FMCG
Slide 12: Overview of FMCG Business
Overview of FMCG Business Total FMCG market ~ Rs. 125Bn Hemas FMCG revenue contribution (Jan’12 to Sept’12) for 1H 2012/13 26% 14% 10% 20% 76% 54% Food and Beverages Personal Care Household Care Food and home care Personal care Personal wash Value Growth : Jan - Sept ’12 Vs. Jan - Sept ’11 All Urban
Slide 13: FMCG: Our Key Brands
FMCG: Our Key Brands Most preferred range of baby care products Baby Cheramy in Sri Lanka since 1962 Unique oral care product containing clove oil Clogard No. 2 in oral care market Kumarika Leading hair oil in the market with indigenous herbs A leading washing powder in the market Diva delivering ex
Slide 14: FMCG: Performance Highlights
FMCG: Performance Highlights 1H 12/13 1H 11/12 Change Strong performance in Personal wash and Turnover (Rs. Mn) 3,679 3,139 17% Personal care categories contributed PAT (Rs. Mn) 358 257 40% towards the growth in revenue Steady increase in sales: September Revenue in PAT in Rs. recorded the highe
Slide 15: Big Heart Project
Big Heart Project Baby Cheramy, celebrates 50 years of enriching lives of Sri Lankan mothers and children The Big heart Project was launched together with the Department of Probation and Childcare Services of the Ministry of Child Development & Women Affairs, in September 2012, to celebrate this
Slide 16: Healthcare
Healthcare
Slide 17: Overview of Pharmaceutical Distribution
Overview of Pharmaceutical Distribution Size of the total Pharmaceutical market is Hemas Pharmaceutical revenue ~ Rs 27Bn (MAT Q2 2012) (Source IMS) contribution for 1H 12/13 Overall Pharmaceutical market has grown by 16.3% YoY (Source IMS) 4% Hemas Pharmaceutical remains the market 30% leader
Slide 18: Overview of Hospitals
Overview of Hospitals Outpatient and inpatient volumes at The number of registered private hospitals Hemas Hospitals Outpatient volume in Inpatient stood at 186 at end 2011, with a bed ‘000s volume capacity of 4,784 (Source- CBSL) 120 6,000 Combined market size of the 4 leading 100 5,000 hospita
Slide 19: Health Care: Performance Highlights
Health Care: Performance Highlights 1H 12/13 1H 11/12 Change Turnover (Rs. Mn) 4,462 3,631 23% PAT (Rs. Mn) 256 190 35% Pharmaceutical business was the main contributor to sector revenue growth Revenue in PAT in Rs. • Revenue growth of Pharma: 21.8% Rs. Millions Millions • Revenue growth of Hospit
Slide 20: Leisure
Leisure
Slide 21: Overview of Tourism Industry
Overview of Tourism Industry Travel Trends Sri Lanka Outbound travel forecast 2012: Tourist arrivals during the year were World 2%; Europe 1%; Asia 4% 693,772 marking a growth of 16% and (IPK Survey) expect to top one million at the end of year Purpose of travel : 71% holidays of which 27% loo
Slide 22: Leisure: Performance Highlights
Leisure: Performance Highlights 1H 12/13 1H 11/12 Change Sector performance was mainly driven by the Hotel sector and was enhanced by our Turnover (Rs. Mn) 656 453 45% inbound tour operation PAT (Rs. Mn) 90 -23 491% Gross operating profit of the Hotel sector grew by an impressive 124% over LY Re
Slide 23: Transportation
Transportation
Slide 24: Overview of Transportation Industry
Overview of Transportation Industry Metric Tonnes Air cargo volumes YoY Growth 7,000 25.0% Import volumes in Sri Lanka declined 6,000 20.0% over LY on account of higher tariffs 5,000 while exports slowed down due to 4,000 15.0% unfavourable economic conditions in 3,000 10.0% the EU and US markets
Slide 25: Transportation: Performance Highlights
Transportation: Performance Highlights 1H 12/13 1H 11/12 Change GSA businesses maintained their leadership in the Turnover (Rs. Mn) 465 359 29% market with both passenger and cargo segments PAT (Rs. Mn) 155 102 52% posting healthy earnings The outbound travel business continued to strengthen its
Slide 26: Power
Power
Slide 27: Overview of Power Industry
Overview of Power Industry GWh 14,000 Annual power generation - GWh 12,000 Hemas Power revenue vs 10,000 furnace oil prices 8,000 Revenue in Rs. per Rs. Millions liter 6,000 6,000 70 4,000 5,000 60 2,000 50 0 4,000 2004 2005 2006 2007 2008 2009 2010 2011 40 Hydro Thermal Other Renewbles 3,000 30 2,0
Slide 28: Power: Performance Highlights
Power: Performance Highlights 1H 12/13 1H 11/12 Change Turnover (Rs. Mn) 3,140 2,088 50% PAT (Rs. Mn) 116 165 -30% Sector revenue was mainly driven by growth of our thermal power plant Heladhanavi due to increase in fuel prices Revenue in PAT in Rs. Rs. Millions Millions Our hydro power plants r
Slide 29: Sustainability
Sustainability HE/X\AS
Slide 30: Community Investment
Community Investment Hemas’ primary CSR project ‘Piyawara’ celebrated its 10 year partnership with the Ministry of Child Development At present Hemas has 35 state-of-the-art preschools island wide providing education for over 3,000 children First ever community preschool in the resettled villa
Slide 31: Strategic Focus
HEZ\AS Strategic Focus
Slide 32: Strategic Focus
Strategic Focus FMCG • Greater focus to win in the Healthcare personal care market Third hospital at Leisure • Investment in identified Thalawathugoda Peace Haven project in high growth categories • Completion: May 2013 Tangalle • Improve sales growth and • Estimated cost: Rs. 1.3Bn • Luxury resort
Slide 33: Strategic Focus contd.
Strategic Focus contd. Transportation • Investments and growth plans for Power maritime, aviation and logistics businesses • Focus on renewable energy space; mainly in the small hydro segment in Sri Lanka and East Africa
Slide 34: Hemas Investor Relations
Hemas Investor Relations: Telephone: +94 11 4 731 731 Email: ir@hemas.com Web: http://www.hemas.com Hemas Holdings PLC Hemas House, 75, Braybrooke Place, Colombo 2, Sri Lanka