Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — Q1 FY2022-23 Earnings Presentation
37 slides from Hemas's earnings presentation, Jun 30, 2022
Slide 1: Hemas Holdings PLC Investor Presentation
Hemas Holdings PLC Investor Presentation Three months ending June 30, 2022 – Q1 FY 2022-23 COPYRIGHT © 2022 | HEMAS HOLDINGS PLC
Slide 2: Our Journey
Our Journey Established Hemas Expanded into travel IPO on the Colombo Acquired leading Pharmaceutical Acquired Sri Lanka’s Largest Divested Spectra Drugs Pvt Ltd and tourism Stock Exchange Manufacturing firm Stationery Brand Logistics 2019/ 1948 1962 1970s 1980s 2003 2007 2013 2014 2018 20 2021 2022
Slide 3: Our Portfolio
Our Portfolio Consumer Brands Healthcare Mobility • Home and Personal Care - • Pharmaceutical Import, • Maritime Sri Lanka (HPC SL) Marketing and Distribution • Aviation • Home and Personal Care - • Pharmaceutical Manufacturing - International (HPC Int) Morison • Learning Segment - Atlas • Hospitals
Slide 4: Macroeconomic Snapshot of Sri Lanka
Macroeconomic Snapshot of Sri Lanka Inflation Commodity Price Hike Impact of the Economic Crisis Colombo Consumer Price Index (CCPI) GSCI Commodity Index With the slow down in the reached a record high of 54.6% YoY in June 800 725.3 712.2 Global economy, commodity USD liquidity constraints 2022 on t
Slide 5: Macroeconomic Snapshot of Sri Lanka
Macroeconomic Snapshot of Sri Lanka LKR Depreciation Interest Rate Tax Reforms GDP While the CBSL guidance has reduced Interest rates continued the upward Increasing VAT rate from 8% GDP for Q1 of CY contracted by 1.6% volatility, pressure on USD/LKR continued momentum where market witnessed to 12%
Slide 6: Our Strategic Building Blocks – Q1 FY 2022-23
Our Strategic Building Blocks – Q1 FY 2022-23 MORE FROM THE CORE NEW WITHIN THE CORE Accelerate current business efforts to drive Capturing new revenue streams to further DRIVERS higher value in core business strengthen the core • HPC SL : ‘Baby Cheramy’ launched a 75g soap and Diva’ introduced • HP
Slide 7: Financial Snapshot of the Group
Financial Snapshot of the Group Q1 2022-23 EBIT by Segment Q1 2022-23 Group Revenue by Segment (LKR Mn) 86.1% Q1 2022-23 (YoY) LKR 24.8 Bn LKR 1.81 2,031 0.0% 51.4% 69.5% (0.0%) 1.8% 434 (3.6%) 2,000 Revenue EPS 35.1% 1,092 704 (32.6%) 242 1,000 20 415 217 LKR 2.0 Bn 34.3% 63.1% 124 43 1,153 86.1% 8
Slide 8: Sector Performance Summary – Q1 FY 2022-23
Sector Performance Summary – Q1 FY 2022-23 Revenue Walk EBIT Walk (LKR Mn) (LKR Mn) 2,500 192 -58 2,031 3,359 24,841 -143 5 2,000 487 5,216 318 1,500 16,404 1,092 1,000 500 0 FY 22 Healthcare Consumer Mobility Other FY 23 FY 22 Healthcare Consumer Mobility Other FY 23 Note: The ‘other segment’ inclu
Slide 9: Continuing Operation EPS – Q1 FY 2022-23
Continuing Operation EPS – Q1 FY 2022-23 EPS Walk (LKR Per Share) 3.50 3.00 1.57 -0.11 -0.54 2.50 -0.18 1.81 2.00 1.50 1.07 1.00 0.50 0.00 FY 22 Operating Profit Net Finance Cost Income Tax NCI FY 23 COPYRIGHT © 2022 | HEMAS HOLDINGS PLC 9
Slide 10: Capital Employed – Q1 FY 2022-23
Capital Employed – Q1 FY 2022-23 Sector Efficiency Capital Employed, ROCE, and EBIT by Sector 80% 60% Mobility Consumer LKR 433.5 Mn LKR 704.3 Mn Healthcare 40% LKR 1,153.1 Mn Group ROCE – 19.7% 20% ROCE (%) 0% 0 5 10 15 20 25 30 35 -20% Capital Employed (LKR Bn) -40% Other LKR (259.9 Mn) -60% Note:
Slide 11: New Product Launches during the Quarter
New Product Launches during the Quarter Home and Personal Care Pharmaceutical Manufacturing Sri Lanka Baby Cheramy 75 g variant with almond Oil, Vitamin E and Milk Morison ‘Ros-10’ Clogard ‘Pancha Shakthi’ enriched with Irimedadi Oil to improve overall Paris Floral and Jasmine oral health 50 ml Colo
Slide 12: Consumer Brands
Consumer Brands Home and personal care – Sri-Lanka Home and personal care – International Learning Segment COPYRIGHT © 2022 | HEMAS HOLDINGS PLC 12
Slide 13: Consumer Brands
Consumer Brands Contribution to Group Sector Performance – Q1 FY 2022-23 Revenue % 35% Key Highlights Revenue (LKR Mn) 62.7% 33% (YoY) • Heightened inflationary pressure along 9,698 with non availability of essentials drove 8,262 8,713 the market behaviour. 9,000 Q1FY23 7,327 • Disruptions to operat
Slide 14: Home and Personal Care – Sri Lanka
Home and Personal Care – Sri Lanka Key categories with market Purpose-driven brands touching the lives of the Sri Lankan consumer 8 leading positions Launched Clogard ‘Pancha ’n Shakthi’ with Irimedadi Oil Inclusive Strong roots Parenting Stronger Make a Celebrating & Enabling Both parents together
Slide 15: Home and Personal Care Sri Lanka: Strong Brand Portfolio
Home and Personal Care Sri Lanka: Strong Brand Portfolio of business - Hemas is 95% among the Top 3 players #1 #1 #1 #2 In Hair Oil In Beauty Soap In Baby Care In Feminine Care Presence in all modern trade chains and outlets of households reached by 98% Hemas brand #2 #2 In Laundry Care In Oral Care
Slide 16: Our Consumer Health Brands
Our Consumer Health Brands Skincare Baby Care Cold and Flu COPYRIGHT © 2022 | HEMAS HOLDINGS PLC 16
Slide 17: Home and Personal Care – International
Home and Personal Care – International Locally led and localised in Bangladesh Reach in Bangladesh 2 Geographies Bangladesh & West Bengal • All products are exclusively designed for Rural penetration Bangladesh. 19.0% by Hemas 2 Key categories Health soap category—Actisef • Extensive product portfol
Slide 18: Home and Personal Care – Sri Lanka and International
Home and Personal Care – Sri Lanka and International Sri Lanka International Revenue (LKR Mn) 64.2% Revenue Revenue (YoY) • Improved market position in multiple personal care 7,253 • HPC Bangladesh business managed to maintain spaces including hair care and feminine hygiene. steady volume growth des
Slide 19: Atlas: Where We Inspire the Next Generation to Unleash Their Potential
Atlas: Where We Inspire the Next Generation to Unleash Their Potential “We provide tools, content and experiences which will enable the next generation to unleash their potential” Carefully Crafted Brand Portfolio Atlas KIDS in Line with Growth Areas Catering to all stationery and back-to-school • O
Slide 20: Learning Segment
Learning Segment Revenue 6 Key categories • With the easing of the back-to-school season Atlas witnessed a slow down in Q-o-Q revenue. Revenue (LKR Mn) • Market share improvements were witnessed across all key categories including books and pens. High Efficiency and productivity 4,200 4,073 through
Slide 21: Healthcare Sector
Healthcare Sector Pharmaceutical Import, Marketing and Distribution Pharmaceutical Manufacturing Hospitals COPYRIGHT © 2022 | HEMAS HOLDINGS PLC 21
Slide 22: Healthcare Sector
Healthcare Sector Contribution to Group Sector Performance – Q1 FY 2022-23 63% Key Highlights Revenue % Revenue (LKR Mn) 49.9% (YoY) • State Healthcare sector faced a shortage 64% 15,675 in medicine supply, amidst constraints on 16,000 government spending on healthcare due Q1FY23 14,000 12,427 11,84
Slide 23: Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing
Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing Pharmaceutical Import, Marketing, and Pharmaceutical Manufacturing Morison Plant and Key Highlights Distribution NPD focused separate manufacturing Principals Formulations - Manufacturing line consisting of advanced tech
Slide 24: Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing
Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing Revenue • The distribution segment ensured continued supply of medicine in line with the Revenue (LKR Mn) steady demand. 57.5% (YoY) • Despite slowdown in government buy-back revenue, both the branded and generic market
Slide 25: We are the only COVID-Certified Hospital in Sri Lanka
We are the only COVID-Certified Hospital in Sri Lanka Hemas Hospitals Highlights Centers of Excellence: “The first Internationally accredited hospitals chain in Sri Lanka by the Australian • In vitro fertilization unit (IVF) (20 cycles in Council on Healthcare Standards International (ACHSI)” Apr -
Slide 26: We have a widespread Lab Network
We have a widespread Lab Network 50+ Labs & Collection Centers Lab Network Highlights Q1 FY 2022-23 Performance across the Country Centers of Excellence: • Main Lab Services to Hospitals (11 304k+ B2B Labs +3 B2B CCs) Test volumes • Outer Labs services across the country (14 Labs) 118+ • Collection
Slide 27: Hospitals
Hospitals Revenue 170+ Beds • Despite the slowdown in COVID-19 related revenue the core businesses witnessed a growth of 37.8% Revenue (LKR Mn) with high occupancy and surgical admissions. 2,000 1,902 3.3% 62% Hospital occupancy 1,770 (YoY) Profitability 1,546 1,526 1,477 • Efficiency improvement an
Slide 28: Mobility Sector
Mobility Sector Maritime Aviation COPYRIGHT © 2022 | HEMAS HOLDINGS PLC 28
Slide 29: Mobility Sector
Mobility Sector Contribution to Group Sector Performance – Q1 FY 2022-23 2% Revenue % Key Highlights Revenue (LKR Mn) 4% 1,000 • Despite the decline in revenue due to the 24.3% divestment of the logistic operation, (YoY) earnings for the quarter increased by Q1FY23 587 595 68.6% due to finance incom
Slide 30: Mobility Sector
Mobility Sector 2Far Shipping line – Evergreen line & Far Shipping “Offering a Full Spectrum of End-to-end Services across Land, Sea and Air” Emirates cargo : Average daily 112,000+ TEUs freight capacity of 75 tons. Represents the leading - Q1 FY 2023 Facilitating over 1000+ Emirates Passenger : fee
Slide 31: A Group Digital Transformation
A Group Digital Transformation that will Reimagine, Re-organise, Rebuild, Reinvent and Refocus Hemas Digital Outcomes Reorganize Leadership, Organization & Governance Revenue and Value Creation New Ways of Working Skills for the future Customer Digital DNA in our people New digital Predictive data /
Slide 32: Sustainability Performance – Q1 FY 2022-23 vs Q1 FY 2021-22
Sustainability Performance – Q1 FY 2022-23 vs Q1 FY 2021-22 Values of Fines for Non-Compliance Carbon Footprint (per Rs. Mn Revenue) 0.15 MT 19% with Laws and Regulations in the NONE Social Economic Area Water Consumption Total Work-Related Injury Rate (per Rs. Mn Revenue) 1.7 m3 10% (per 100 employ
Slide 33: Supporting our Communities
Supporting our Communities Providing Emergency Relief to Providing Access to Essential Providing Nutritious Packs to Families Medicine Piyawara Children Facilitator 15 367 Pre- Schools 100,000+ 6 Districts COPYRIGHT © 2022 | HEMAS HOLDINGS PLC 33
Slide 34: Environmental Agenda 2030: Responsible Use and Disposal of Plastic
Environmental Agenda 2030 : Responsible Use and Disposal of Plastic Addressing Marine Pollution in Sri Lanka Reclaiming Pens and Toothbrushes An ‘Ocean Strainer’ floating trash trap Recycling bins at Government institutions and schools to collect disposable at the Samanala Canal, Galle, and four ‘Be
Slide 35: Environmental Agenda 2030: Safeguarding our Eco System
Environmental Agenda 2030 : Safeguarding our Eco System (FY 2021/22 Update) Restoring the Mangrove Ecosystem at the Anawilundawa Ramsar Wetlands Reforesting of Land in Balangoda for a Greener Sri Lanka Implementation of necessary measures to restore mangroves in Partnership with Rainforest Protector
Slide 36: Corporate Governance
Corporate Governance BOM Group CEO BOM Consists of the senior leadership team of 9 members - MDs of our 5 major businesses and 4 leaders from Corporate Nomination & Office. BOM is responsible for formulation and implementation of Group strategic plan and ensures that the Group Group Audit Governance
Slide 37: Disclaimer
Disclaimer The material in this presentation has been prepared by Hemas Holdings PLC (“Hemas”) and is general background information about Hemas’ activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this