John Keells Holdings Plc · CSELK:JKH.N0000
John Keells — Investor Presentation (2023)
52 slides from John Keells's investor presentation, 2023
Slide 1: Investor Presentation
Investor Presentation Overview of the John Keells Group and review of FY2023 performance Version 2.0 This Investor Presentation should be read in conjunction with the JKH Annual Report 2022/23 to obtain a more comprehensive understanding of the drivers and strategies of our businesses. Please refer
Slide 2: Contents
Contents 1. Group Overview i. John Keells Group ii. Industry Groups and sectors iii. Shareholding structure iv. Overview of ESG initiatives 2. Industry Group Overview i. Transportation ii. Consumer Foods iii. Retail iv. Leisure v. Property vi. Financial Services vii. Information Technology and Plant
Slide 3: John Keells Group: Overview
John Keells Group: Overview ▪ The John Keells Group (JKH) is the largest diversified listed conglomerate in Sri Lanka, with an operating history of over 150 years. ▪ The Group has ~7 business segments. Its anchor businesses are Leisure, Property, Transportation, Consumer Foods, Retail, and Financial
Slide 4: John Keells Group: Industry groups and sectors
John Keells Group: Industry groups and sectors 4
Slide 5: Shareholding consists of international institutional shareholders and reputed local companies
John Keells Group: Shareholding consists of international institutional shareholders and reputed local companies ▪ The shareholding structure of JKH is 99% free- Mr S E Captain, float, with ~40% foreign institutional investors. 9.7% Details of key investors as at 31 March 2023 Others, 50.2% Melstaco
Slide 6: Overview of ESG initiatives: Governance
Overview of ESG initiatives: Governance Shareholding Structure (%) JKH Board composition (%) Environmental, Social and Governance (ESG) Initiatives: ▪ As a part of the Group’s ongoing efforts towards increasing emphasis 38 29 on environmental, social and governance (ESG) aspects, the Group embarked
Slide 7: Overview of ESG initiatives: Environmental
Overview of ESG initiatives: Environmental Carbon Footprint (MT) per Water Withdrawal (m3 ) per Total energy consumption (GJ) Energy Breakdown (%) Rs.million of Revenue Rs.million of Revenue per Rs.million of revenue 0.7 0.64 5 14 13.19 4.49 13 0.6 0.53 12 4 10.1 3.53 0.5 10 Rs. Mn Rs. Mn Rs. Mn 0.3
Slide 8: Overview of ESG initiatives: Social
Overview of ESG initiatives: Social CSR Focus Areas Health Arts and Culture Crisis Response Initiatives 655,551 92,570 220,394 Persons Benefited in 2022/23 Persons Benefited in 2022/23 Persons Benefited in 2022/23 Education Environment Economic Value Generated Rs. 315,254 million 4,132 93.75 Acres P
Slide 9: Recurring EBITDA for the year ended 31 March
Recurring EBITDA for the year ended 31 March Recurring EBITDA* FY2023 FY2022 Variance Variance % (Rs.million) Transportation 11,963 6,141 5,822 95 Consumer Foods 3,184 3,485 (301) (9) Retail 8,779 7,549 1,230 16 Leisure 8,604 3,785 4,819 127 Property (265) 7,867 (8,133) (103) Financial Services 6,45
Slide 10: Annual Recurring EBITDA of 2022/23 demonstrates significant growth potential
Annual Recurring EBITDA of 2022/23 demonstrates significant growth potential Recurring EBITDA* 2022/23 2021/22 2020/21 2019/20 (Rs.million) Transportation 11,963 6,141 3,610 4,375 Consumer Foods 3,184 3,485 3,318 3,366 Retail 8,779 7,549 5,523 5,108 Leisure 8,604 3,785 (3,588) 2,306 Property (265) 7
Slide 11: Key financial indicators
Key financial indicators 31 March 31 March 31 March 31 March (Rs.million) 2023 2022 2021 2020 Total debt excl. leases 229,749* 234,701 147,197 79,615 Total debt excl. leases and convertible debenture 211,369 Cash and cash equivalents 100,340 157,090 81,758 45,540 Net debt excl. leases 129,409 77,611
Slide 12: Portfolio evaluation 2022/23; returns vs. effective capital deployed
Portfolio evaluation 2022/23; returns vs. effective capital deployed Revenue recognition from the residential apartments and office Effective capital employed Industry group floors sold to date at ‘Cinnamon Life Integrated Resort’ has been (%) completed. The project will generate material recurring
Slide 13: Transportation: overview
Transportation: overview ▪ 42% stake in SAGT – container terminal (capacity of ~2 million TEUs). ▪ Development of the WCT-1 (capacity of ~3.2 million TEUs). ▪ Leading bunkering services provider. ▪ One of the largest cargo and logistics service providers in the country. ▪ JV with Deutsche post for D
Slide 14: The strategic location of the Port of Colombo linking key shipping routes
The strategic location of the Port of Colombo linking key shipping routes 14
Slide 15: Development opportunities at the Port of Colombo
Development opportunities at the Port of Colombo ▪ The groundwork on the West Container Terminal (WCT-1) at the POC is progressing well with the entirety of the dredging works for both phases near complete as at May 2023. The contract for the quay wall construction, a significant component of the ov
Slide 16: Sustained volume growth in the Port of Colombo
Sustained volume growth in the Port of Colombo 7.23 7.25 7.05 6.85 6.87 6.21 5.74 5.19 4.91 Million TEUs 4.31 2013 2014 2015 2016 2017 2018 2019 2020* 2021 2022 *The impact from COVID-19 at the PoC was more pronounced during the first quarter of 2020/21, when the pandemic escalated in Sri Lanka and
Slide 17: Opportunities for growth in the Bunkering business
Opportunities for growth in the Bunkering business Port of Hambantota ▪ Strong opportunities for private bunkering service providers with infrastructure in place for inland storage of petrochemicals and a pipeline to the Port. ▪ The Port will occupy an area of 1,815 hectares and have a capacity to
Slide 18: Transportation: key performance indicators
Transportation: key performance indicators Key Performance Indicators 2018/19 2019/20 2020/21 2021/22 2022/23 SAGT volumes (TEU '000) 2,074 2,066 1,810 1,831 1,704 Domestic:Transshipment mix 19:81 19:81 13:87 14:86 13:87 Port of Colombo volumes (TEU '000) 7,132 7,241 6,800 7,351 6,632 LMS volume gro
Slide 19: Consumer Foods: overview
Consumer Foods: overview ▪ Strong market presence in Beverages, Frozen Confectionery and processed meats through ‘Elephant House’ and ‘Keells- Krest’ brands. ▪ Frozen Confectionery products including premium ice cream range ‘Imorich’ and the ‘Feelgood’ guiltfree frozen yoghurt range for customers se
Slide 20: Low consumption patterns and penetration reflects potential for sustained growth
Low consumption patterns and penetration reflects potential for sustained growth ▪ The penetration of consumer food products in Sri Bulk vs. Impulse Split - Regional Lanka continues to be relatively low in comparison to global and regional peers, demonstrating the significant potential in these indu
Slide 21: Consumer Foods: key performance indicators
Consumer Foods: key performance indicators Key Performance Indicators % 2018/19 2019/20 2020/21 2021/22 2022/23 Volume Growth Beverages (CSD) (25) 7 (14) 18 (7) Frozen Confectionery (FC) 10 3 (1) 17 (7) Convenience Foods 7 0 (6) 12 (22) EBITDA Margins Beverages and FC 18 21.2 20.3 16.8 10.8 Convenie
Slide 22: Consumer Foods: key performance indicators
Consumer Foods: key performance indicators Quarterly Performance Beverages - Movement of raw material prices Volume Growth 2022/23 Full Index: Q1 FY20 = 100 Q1 Q2 Q3 Q4 350 (%) Year 300 Frozen Confectionery 31 6 (19) (30) (7) 250 200 Bulk 19 (6) (25) (37) (15) 150 Impulse 65 30 (7) (18) 10 100 50 Be
Slide 23: Retail - overview
Retail - overview Supermarket Business ▪ High brand equity post the re-branding of 'Keells' – recognised as the 'Strongest Brand in Sri Lanka 2022' for the first time in its history and the 'Most Valuable Supermarket Brand 2022’ for the fourth consecutive year by Brand Finance Sri Lanka. ▪ As at 31
Slide 24: Outlet network to capitalise on low retail penetration levels
Outlet network to capitalise on low retail penetration levels Modern Retail Penetration (%) 80% Centralised distribution Centre (DC) 60% The state-of-the-art distribution centre (DC) centralises offerings across the dry, fresh, and 40% chilled categories with a capacity for ~250 outlets. 20% The DC
Slide 25: Retail: key performance indicators
Retail: key performance indicators Key Performance Indicators Supermarkets (%) 2018/19 2019/20 2020/21 2021/22 2022/23 Same store sales growth 2.3 4.0 (8.6) 12.9 47.6 Same store footfall growth 4.5 1.8 (31.5) 4.5 28.3 Average basket value growth (2.0) 2.2 33.4 8.0 15.1 Profitability EBITDA (Rs.milll
Slide 26: Retail: key performance indicators
Retail: key performance indicators Quarterly Performance 2022/23 (%) Q1 Q2 Q3 Q4 Full Year Same store sales growth 54.2 73.7 40.6 30.1 47.6 Same store footfall growth 52.2 76.9 11.1 0.1 28.3 Average basket value growth 1.4 (1.8) 26.5 30.0 15.1 The statistics on footfall and basket values are distort
Slide 27: Leisure: overview
Leisure: overview ▪ ‘Cinnamon’, a well-established hospitality brand in Sri Lanka and the Maldives: ▪ 3 Colombo Hotels (~10% of the country’s 4-5 star class tourist accommodation) ▪ 8 Sri Lankan Resorts ▪ 4 Maldivian Resorts ▪ Combined room inventory of 2,566 rooms under management in both Sri Lanka
Slide 28: Round trip offering in key tourist destinations; further potential to expand the Cinnamon footprint
Round trip offering in key tourist destinations; further potential to expand the ‘Cinnamon’ footprint ▪ Greater focus on asset light investment models as a part of the strategy to enhance the ‘Cinnamon’ footprint in Sri Lanka ▪ Land bank of 128 acres of freehold and 140 acres of leasehold land in ad
Slide 29: Sri Lanka is a sought-after tourist destination in the region
Sri Lanka is a sought-after tourist destination in the region Annual tourist arrivals to Sri Lanka ('000) Year (000’s) Tourist arrivals YoY Growth (%) 2500 2010* 654 46 2015 1,798 18 2000 2016 2,051 14 1500 2017 2,116 3 2018 2,334 10 1000 2019** 1,913 (18) 500 2020*** 508 (74) 2021*** 194 (62) 0 198
Slide 30: Significant pre-pandemic growth in Asian arrivals to Sri Lanka
Significant pre-pandemic growth in Asian arrivals to Sri Lanka Tourist Arrivals 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020* 2021* 2022 Source: Sri Lanka Tourism Development Authority *2019, 2020 and 2021 arrivals were impacted by Eas
Slide 31: Tourist arrivals to Sri Lanka lag well below regional peers
Tourist arrivals to Sri Lanka lag well below regional peers 45 40 35 30 Arrivals in millions 25 20 15 10 5 0 Malaysia Indonesia Thailand Vietnam Cambodia Sri Lanka 1990 2019 Source: Governmental tourism websites 31
Slide 32: Room inventory in Colombo lags far behind other popular regional capital cities
Room inventory in Colombo lags far behind other popular regional capital cities 60,000 31,790 30,114 26,113 9,100 7,600 5,019 Bangkok Manila Kuala Lampur Jakarta Ho Chi Minh Hanoi Colombo 32
Slide 33: Leisure: key performance indicators
Leisure: key performance indicators Key Performance Indicators 2018/19 2019/20 2020/21 2021/22 2022/23 Colombo Hotels* Occupancy (%) 48 34 3 29 42 ARR (USD) 128 100 64 70 64 EBITDA margin (%) 22 10.5 (84.8) 1.5 7.0 Sri Lankan Resorts Occupancy (%) 80 62 16 32 41 ARR (USD) 90 77 62 78 65 EBITDA margi
Slide 34: Leisure: key performance indicators
Leisure: key performance indicators Quarterly Performance 2022/23 Q1 Q2 Q3 Q4 Full Year Colombo Hotels* Occupancy (%) 33 29 43 62 42 ARR (USD) 68 62 65 63 64 EBITDA margin (%) 0 (4) 12 14 7 Sri Lankan Resorts Occupancy (%) 33 31 38 62 41 ARR (USD) 66 57 63 71 65 EBITDA margin (%) (16) (25) (11) 33 1
Slide 35: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort ▪ An iconic, visionary, first of its kind development with features comparable to top integrated resorts in Southeast Asia. ▪ A rich, dynamic 4.5 million sq. ft of mixed-use development in the heart of Colombo, a ‘city within a city’. ▪ Project Architect - Cecil Balmo
Slide 36: Development area and layout of Cinnamon Life
Development area and layout of ‘Cinnamon Life’ Conferencing ; capacity (~5,000 pax) in five venues and car park facility (2,330 slots) 800 guest room hotel, including conferencing, banqueting, 7 speciality restaurants (~1,300 pax) and entertainment facilities The hotel and conferencing space collect
Slide 37: Aerial view of Cinnamon Life under construction
Aerial view of Cinnamon Life under construction 37
Slide 38: Aerial view of Cinnamon Life under construction
Aerial view of Cinnamon Life under construction 38
Slide 39: Aerial view of Cinnamon Life under construction
Aerial view of Cinnamon Life under construction 39
Slide 40: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort Exhibition Centre - Level 8 Cantilever Ballroom - Level 22 External Garden – aerial view Emblem Pool Bar– Level 25 Hotel Entrance - Level 1 Premium Suite - Living/Dining Premium Suite – Bedroom Premium Suite – Bathroom 40
Slide 41: Property – Overview
Property – Overview ▪ Projects developed under the ‘Luxe Spaces’, ‘Metropolitan Spaces’, ‘Suburban Spaces’ and ‘Leisure linked developments’ verticals which cater to the luxury, mid-tier and suburban multi-family housing segments. ▪ The development and sale of two residential apartment towers; ‘The
Slide 42: Industry potential
Industry potential ▪ Low levels of urbanisation within Sri Lanka in comparison to regional peers ▪ Annual condominium supply far below regional peers Annual condominium supply in regional cities 53,796 38,000 2,187 KL Ho Chi Minh City Colombo Sources: KL: CBRE property market outlook 1Q 2018 (foreca
Slide 43: Low penetration of apartment living in Colombo
Low penetration of apartment living in Colombo 5% 20% 30% 36% 40% 45% 50% 90% 95% 80% 70% 65% 60% 55% 50% 10% Greater Colombo Singapore Thailand (Central Thailand (Outskirts) Malaysia (Central Malaysia (Greater India (Chennai) India (Bangalore) Bangkok) KL) KL) Apartments Landed houses Source: Compa
Slide 44: Prime land bank of over 34 acres in central Colombo
Prime land bank of over 34 acres in central Colombo ▪ Prime land bank of over 34 acres held in central Colombo ▪ One of the largest privately owned land banks ▪ Includes the ongoing ‘Cinnamon Life Integrated Resort’ project ▪ Opportunities for development at land banks held in ‘Crescat Boulevard’ an
Slide 45: Developable freehold land of approximately 25 acres in close proximity to Colombo city
Developable freehold land of approximately 25 acres in close proximity to Colombo city ▪ Greater connectivity and reduction in travel time to Colombo city post construction of the outer circular expressway. ▪ Direct connectivity to the Port City Colombo and a multi modal transportation hub to be dev
Slide 46: Robust development pipeline: Scenic land bank with an 18-hole golf course
Robust development pipeline: Scenic land bank with an 18-hole golf course Rajawella Holdings Limited (RHL) ▪ The scenic land bank in Digana includes an 18-hole, Donald Steel designed, Golf Course and developable land, under the management of Troon International. ▪ Land plots in ‘Peacock Valley’ and
Slide 47: Property: key performance indicators
Property: key performance indicators Key Highlights ▪ Revenue on the 266 units sold with regard to the Mall Occupancy 2018/19 2019/20 2020/21 2021/22 2022/23 residential towers at the 'Cinnamon Life Integrated (%) Resort', has been fully recognised during 2021/22, K-Zone Ja-Ela 91 87 82 82 82 with a
Slide 48: Financial Services – Overview
Financial Services – Overview ▪ Union Assurance (UA) offers comprehensive insurance solutions in the Life Insurance segment while General Insurance solutions are offered through its associate Union Assurance General Limited (UAG) • Operating footprint of 78 branches, excluding virtual locations. • A
Slide 49: Insurance: key performance indicators
Insurance: key performance indicators Key performance indicators CY2018 CY2019 CY2020 CY2021 CY2022 Market share (%) 14 13 13 12 12 GWP growth (%) 11 4 13 18 8 Recurring net profit (Rs.million) 3,243 1,158 921 2,054 2,881 Surplus from Life Fund (Rs.million) 1,100 1,000 825 1,600 2,300 Life Fund (Rs.
Slide 50: Banking: key performance indicators
Banking: key performance indicators Key performance indicators CY2017 CY2018 CY2019 CY2020 CY2021 CY2022 Loans and advances growth (%) 25.0 19.0 2.0 (7.3) 17.7 (3) Industry (LCB’s) (%) 15.8 20.3 4.9 13.3 13.5 8.1 Return on equity (%) 17.4 15.3 12.8 12.1 17.9 17 Industry (LCB’s) (%) 17.4 13.7 10.6 10
Slide 51: Other including Information Technology and Plantation Services
Other including Information Technology and Plantation Services Information Technology Plantation Services ▪ Software solutions and consultation services based on ▪ Leading tea and rubber broker. Internet of Things (IOT), Robotic Process Automation ▪ Operates six of the seven factories owned. One fac
Slide 52: THANK YOU
THANK YOU This document was produced by John Keells Holdings PLC for information purposes only. The information contained in this document are a review of the financial information pertaining to FY2023 and does not constitute an issue prospectus or a financial analysis. This Investor Presentation sh