John Keells Holdings Plc · CSELK:JKH.N0000
John Keells — Q4 2022/23 Earnings Presentation
35 slides from John Keells's earnings presentation, 2023
Slide 1: JKH Investor Presentation: Review of Q4 2022/23
JKH Investor Presentation Review of Q4 2022/23 Version 2
Slide 2: Recurring EBITDA: For the year ended 31 March
Recurring EBITDA: For the year ended 31 March Recurring EBITDA* 2022/23 2021/22 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
Slide 3: Annual recurring EBITDA displays growth momentum
Annual recurring EBITDA displays growth momentum 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) 7,867 (17) 641 Financial Serv
Slide 4: Recurring EBITDA: For the quarter ended 31 March
Recurring EBITDA: For the quarter ended 31 March Recurring EBITDA* Q4 2022/23 Q4 2021/22 Variance Variance % (Rs. Million) Transportation 1,537 2,521 (984) (39) Consumer Foods 540 1,563 (1,023) (65) Retail 2,176 2,384 (207) (9) Leisure 3,831 3,246 586 18 Property 466 5,356 (4,891) (91) Financial Ser
Slide 5: Quarterly recurring EBITDA movement
Quarterly recurring EBITDA movement Recurring EBITDA 2021/22 2022/23 (Rs. Million) Q4 Q1 Q2 Q3 Q4 Transportation 2,521 4,551 3,035 2,840 1,537 Consumer Foods 1,563 1,233 1,009 402 540 Retail 2,384 2,319 1,963 2,320 2,176 Leisure 3,247 1,869 1,005 1,898 3,831 Property 5,356 (140) (279) (312) 466 Fina
Slide 6: Analysis of YoY PBT performance
Analysis of YoY PBT performance (Rs.Million) 2022/23 2021/22 Reported PBT 22,589 27,324 Routine adjustments: - Net exchange (gains)/losses (6,630) (12,889) - IP (gains)/losses (353) (203) FY23 one-off adjustments: - One-off impacts from performance related initiatives 56 - - Provision for impairment
Slide 7: Finance Costs: For the year ended 31 March
Finance Costs: For the year ended 31 March Finance Costs 2022/23 2021/22 Variance Variance % (Rs. Million) Transportation 719 168 551 328 Consumer Foods 958 180 778 432 Retail 4,097 1,872 2,225 119 Leisure 3,084 1,354 1,730 128 Property 122 139 (17) (12) Financial Services 0.012 323 (323) (100) Othe
Slide 8: Analysis of finance costs
Analysis of finance costs Finance Costs Q4 2022/23 Q3 2022/23 Q4 2021/22 (Rs. Million) Transportation 178 197 56 Consumer Foods 332 324 46 Retail 1,082 1,225 497 Leisure 864 845 355 Property 25 40 84 Financial Services 0.004 - 323 Other, incl. IT and Plantation Services 2,954 2,671 805 Group 5,434 5
Slide 9: Recurring PBT: For the quarter ended 31 March
Recurring PBT: For the quarter ended 31 March Recurring PBT Q4 2022/23 Q4 2021/22 Variance Variance % (Rs. Million) Transportation 1,269 2,406 (1,138) (47) Consumer Foods (81) 1,258 (1,340) (106) Retail 245 1,155 (910) (79) Leisure 1,469 1,859 (390) (21) Property 419 5,250 (4,832) (92) Financial Ser
Slide 10: Key financial indicators
Key financial indicators (Rs. Million) 2022/23 2021/22 2020/21 Total debt* excl. leases and incl. convertible 229,749 debenture 234,701 147,197 Total debt excl. leases and convertible debenture 211,369 Cash and cash equivalents 100,340 157,090 98,488 Net debt excl. leases and convertible debenture 1
Slide 11: Overview of ESG initiatives for 2022/23
Overview of ESG initiatives for 2022/23 • The Group’s carbon footprint per million rupees of revenue decreased by 29% to 0.38 MT. • The Group’s water withdrawal per million rupees of revenue decreased by 31% to 7.01 cubic meters. • The Group embarked on re-formulating its ESG framework in collaborat
Slide 12: Transportation: Port of Colombo
Transportation: Port of Colombo Capacity Enhancements Port of Colombo Volumes 900 818 781 805 780 800 770 700 TEU'S 000 600 575 485 500 440 431 440 400 457 439 439 416 408 300 Q4 Q1 Q2 Q3 Q4 2021/22 2022/23 SAGT SLPA CICT *SLPA includes volumes of JCT and ECT terminals 12
Slide 13: WCT-1: Construction progress
WCT-1: Construction progress ECT CICT WCT-1 November 2022 May 2023 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 com
Slide 14: Transportation: Q4 2022/23
Transportation: Q4 2022/23 Port Business (South Asia Gateway Terminal) Q4 Earnings Update: 2021/22 2022/23 Volumes (TEUs) Q4 Q4 Q4 Q1 Q2 Q3 Q4 (Rs. mn) 2022/23 2021/22 SAGT 456,926 439,310 439,605 416,381 408,261 Recurring 1,537 2,521 Domestic: EBITDA Transshipment 14:86 13:87 12:88 13:87 13:87 volu
Slide 15: Consumer Foods: Q4 2022/23
Consumer Foods: Q4 2022/23 Q4 Earnings Update: Key performance FY2022 FY2023 Q4 Q4 indicators (%) Q4 Q1 Q2 Q3 Q4 (Rs. mn) 2022/23 2021/22 Volume growth: Recurring 540 1,563 Frozen Confectionery 25 31 6 (19) (30) EBITDA Beverages (CSD) 34 56 13 (19) (40) ▪ The Consumer Foods industry group Convenienc
Slide 16: Consumer Foods: 2022/23
Consumer Foods: 2022/23 Key performance indicators (%) FY2019 FY2020 FY2021 FY2022 FY2023 Volume growth: Frozen Confectionery 10 3 (1) 17 (7) Beverages (CSD) (25) 7 (14) 18 (7) Convenience Foods 7 (0) (6) 12 (22) Recurring EBITDA margin 18 20 20 17 10 16
Slide 17: Cost of sales analysis of the Beverages business
Cost of sales analysis of the Beverages business Cost of sales composition – FY2023 vs FY2022 Indexed price of raw materials Index: Q1 FY20 = 100 67% 350 58% 300 250 40% 200 30% 21% 150 100 50 3% 2% 0 Raw materials and Energy costs Others Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 packaging cos
Slide 18: Cost of sales analysis of the Frozen Confectionery business
Cost of sales analysis of the Frozen Confectionery business Cost of sales composition – FY2023 vs FY2022 Indexed price of raw materials 80% Index: Q1 FY20 = 100 76% 600 500 400 44% 300 31% 21% 200 15% 100 5% 3% 0 Raw materials and Energy costs Others Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 p
Slide 19: Retail: Q4 2022/23
Retail: Q4 2022/23 Supermarket business: Q4 Earnings Update: Key performance FY2022 2022/23 Q4 Q4 indicators (%) Q4 Q1 Q2 Q3 Q4 (Rs. mn) 2022/23 2021/22 Same store sales Recurring 18.9 54.2 73.7 40.6 30.1 2,176 2,384 growth EBITDA Same store footfall 17.0 52.2 76.9 11.1 0.1 ▪ The Supermarket busines
Slide 20: Retail: 2022/23
Retail: 2022/23 Supermarket business: Profitability margin (%) FY2019 FY2020 FY2021 FY2022 FY2023 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 Recurring EBITDA (Rs.Milllion) 2,367 4,267 4,144 5,
Slide 21: Retail: Q4 2022/23 vs Q4 2021/22
Retail: Q4 2022/23 vs Q4 2021/22 Same Store Same Store ABV Sales Footfall 30.0% 30.1% 0.1% Q4 2021/22: Q4 2021/22: Q4 2021/22: • Higher same store sales growth on • With the resumption in business activity, • March 2022 NCPI (YoY) – 21.5%. the back of the easing of pandemic- customer footfall increa
Slide 22: Arrivals to Sri Lanka showed a recovery trend prior to April 2022
Arrivals to Sri Lanka showed a recovery trend prior to April 2022 Sri Lanka - Monthly Tourist Arrivals 300 Month 2019 2020 2021 2022 2023 Jan 244,239 228,434 1,682 82,327 102,545 250 Feb 252,033 207,507 3,366 96,507 107,639 Mar 244,328 71,370 4,581 106,500 125,495 200 Apr 166,975 - 4,168 62,980 105,
Slide 23: Air connectivity to Sri Lanka: recovery to pre-pandemic frequencies
Air connectivity to Sri Lanka: recovery to pre-pandemic frequencies Sri Lankan Airlines Air India Emirates Frequency per week: Frequency per week: Frequency per week: 2019: 192 2019: 14 2019: 28 2023: 208 2023: 14 2023: 21 Air Asia China Eastern Singapore Airlines Frequency per week: Frequency per w
Slide 24: Maldivian arrivals: strong recovery trend post-pandemic
Maldivian arrivals: strong recovery trend post-pandemic The Maldives - Monthly Tourist Arrivals 200 Month 2019 2020 2021 2022 2023 180 Jan 151,552 173,347 92,103 131,764 172,499 160 Feb 168,583 149,785 96,882 149,008 177,914 140 Mar 162,843 59,630 109,585 150,739 173,514 120 Apr 163,114 13 91,200 14
Slide 25: JKH Group: Leisure occupancies
JKH Group: Leisure occupancies 100% Peak of social unrest in Sri Lanka 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 Colombo Hotels Sri Lankan Reso
Slide 26: Leisure: Q4 2022/23
Leisure: Q4 2022/23 Q4 Earnings Update: 2021/22 2022/23 Key indicators Q4 Q4 Q4 Q1 Q2 Q3 Q4 (Rs. mn) 2022/23 2021/22 Colombo Hotels* Recurring Occupancy (%) 52 33 29 43 62 3,831 3,246 EBITDA ARR (USD) 77 68 62 65 63 ▪ The Leisure industry group EBITDA Margin (%) 23 0 (4) 12 14 recorded a strong reco
Slide 27: Leisure: 2022/23
Leisure: 2022/23 2021/22 2022/23 Sector Occupancy (%) ARR (USD) Occupancy (%) ARR (USD) Colombo Hotels* 29 70 42 64 Sri Lankan Resorts 32 78 41 65 Maldivian Resorts 75 333 88 360 *Excludes “Cinnamon Red Colombo” and “Cinnamon Life Colombo”. 27
Slide 28: Cinnamon Life
Cinnamon Life Initial sketch by Sri Lankan-British Architect, Cecil Balmond The 3D rendering of “Cinnamon Life” “Cinnamon Life” under construction 28
Slide 29: Cinnamon Life
Cinnamon Life Rendering of “Cinnamon Life” Actual construction of “Cinnamon Life” as of January 2023 29
Slide 30: Cinnamon Life
gal eee Cinnamon Life 30
Slide 31: Cinnamon Life
Cinnamon Life Conferencing capacity (~5,000 pax) in five venues and car park facility (2,330 slots) 800 guest room hotel, including conferencing, banqueting, 6 speciality restaurants (~1,300 pax) and entertainment facilities The hotel and conferencing space collectively entails: - 3 ballrooms, 7 mee
Slide 32: Growth potential - MICE market
Growth potential - MICE market • The number of outbound MICE travelers from India and China was at 2 million and 5 million (pre- pandemic). • Colombo is well poised to take advantage of the growing outbound MICE travel from India. • The ARR and Conference Package Rate is lower in Colombo than India.
Slide 33: Property: Q4 2022/23
Property: Q4 2022/23 Cumulative sales update as at 31 March 2023: Q4 Earnings Update: Number of units sold Number of remaining units Q4 Q4 Cinnamon Life: (Rs. mn) 2022/23 2021/22 The Residence at Cinnamon Life 151 80 Recurring The Suites at Cinnamon Life 115 81 466 5,356 EBITDA Total 266 161 ▪ Q4 FY
Slide 34: Financial Services: Q4 2022/23
Financial Services: Q4 2022/23 Union Assurance PLC: Q4 Earnings Update: Q4 Q1 Q2 Q3 Q4 Key performance FY2022 FY2023 FY2023 FY2023 FY2023 Q4 Q4 (Rs. mn) indicators (%) (Jan-Mar (Apr-Jun (Jul-Sep (Oct-Dec (Jan-Mar 2022/23 2021/22 2022) 2022) 2022) 2022) 2023) Recurring 1,899 1,161 GWP growth 17 13 3
Slide 35: 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 Q4 FY2023 and does not constitute an issue prospectus or a financial analysis. This Investor Presentation
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