Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — Q2 FY2018-19 Earnings Presentation
27 slides from Hemas's earnings presentation, Dec 12, 2018
Slide 1: Investor Presentation Q2 FY 2018–2019
Investor Presentation Hemas Holdings PLC Q2 FY 2018–2019 December 12, 2018
Slide 2: Hemas Holdings PLC: Our portfolio
Hemas Holdings PLC: Our portfolio Home & Personal care SL Pharma Manufacture Home & Personal care International Pharma Distribution School & Office Supplies He Hospitals er a um lth ns Digital Healthcare ca Co ty re Le ili isu ob Hotels re M Logistics Travel Maritime Aviation Copyright © 2018 Hemas
Slide 3: Market leading positions in Consumer and Healthcare
Hemas Holdings PLC: Market leading positions in Consumer and Healthcare Market Leading H&PC Brands Group Revenue by Segment 1H FY 2018-19 Mobility Other Leisure, Travel, 4% Sri Lanka’s Largest & Aviation 5% Pharma Supplier 6% Presence across the Entire Leisure & Travel Value Chain Healthcare 45% Con
Slide 4: Hemas Holdings PLC: Our Group
Hemas Holdings PLC: Our Group u Market cap: LKR 49 billion (US$ 289 million) u Shareholding structure: Esufally family holds 64.3%, 35.7% public holding. u Governance: • HHL is governed by a 12-member board including 6 Independent Directors who are thought leaders in their respective fields of FMCG,
Slide 5: Hemas Journey: 70 years of serving the nation
Hemas Journey: 70 years of serving the nation Ventured into manufacturing Widened array of Extended into personal care Home & Personal the hospital Sold Power products care (HPC) brands space Business 1948 1970s 2003 2013 2018 1960s 1980s 2007 2014 Started Extended in to IPO’d on the Acquired leadin
Slide 6: Building strong consumer brands and access to affordable healthcare
We do this by building strong consumer brands and providing access to a wide range of affordable healthcare solutions… Developing a portfolio of consumer Delivering quality medicines and therapies brands that delight to patients who need them • Consolidate market-leading positions • Offer exceptiona
Slide 7: Connecting suppliers, customers, travellers and digital wellness
… And connecting suppliers with their customers, travellers with unique experiences and digital-first driven Wellness solutions Serving the region’s logistics and route-to-market needs • Drive superior mobility solutions to serve the region’s logistics needs • Extend into 3PL and last-mile RTM Conne
Slide 8: Home & Personal Care—Sri Lanka
Home & Personal Care—Sri Lanka: Driving branded personal care consumption in emerging categories Household Final Consumption in LKR Mn and as a % of GDP u Sri Lanka has high levels of private household 2013–2017 consumption—driving 65% of GDP. 8,000 CAGR: 2.0% u Encouraging growth momentum of brande
Slide 9: Home & Personal Care—International: Kumarika
Home & Personal Care—International: Taking herbal beauty equity of Kumarika to select South Asian markets u Rapid growth of personal care consumption in FMCG & Household Consumption Growth, Bangladesh emerging middle class, adding nearly 30Mn FY 14 – FY 17 15% consumers through 2030. 10% 13.5% u See
Slide 10: School & Office Supplies: Strong outlook
School & Office Supplies: Strong outlook as education spending deepens in importance to the South Asian householder u Education: an investible asset for the Sri Lankan Monthly Household Education Spend family: 2010–2016 CAGR: 12.5% • 4.5 million school going population, with rapid rise of 2,500 2066
Slide 11: Healthcare: Rethinking private healthcare
Healthcare: Rethinking private healthcare and widening access to medicines, wellness products and healthcare services Current spending on health as a % of GDP & overall u Healthcare spend driven by growing burden of NCDs. healthcare revenue growth at Hemas u Middle class consumers seeking convenienc
Slide 12: Mobility: Capitalising on Sri Lanka's geo-strategic location
Mobility: Capitalising on Sri Lanka’s excellent geo-strategic location u Domestic logistics industry estimated to be USD Colombo Port’s Throughput (TEU) 8Bn–USD9Bn growing annual at 10-12%. 2015 – 2017 u More customers demand end to end supply chain 8Mn solutions from logistics operators. 6.0 6.0 6M
Slide 13: Leisure: Experiential leisure with asset-light strategy
Leisure: Focussing on experiential leisure with an asset-light investment strategy u Sri Lanka ranked No.1 travel destination in 2019 by Lonely Tourist Arrivals and Occupancy Planet with tourist arrivals up by 5% during the quarter. 2015 – 2018 YTD u Long haul travellers (Europe, Australia) continue
Slide 14: 1H FY 2018–19: Group Update
1H FY 2018–19: Group Update u We have been executing on our strategic plan by: • Integrating Atlas, our recent acquisition and new agency (Cipla), a leading agency (ranked #2) into the portfolio. • Building our international market presence by ramping up operations in West Bengal, Bangladesh and Mya
Slide 15: 1H FY 2018–19: Operations Summary
1H FY 2018–19: Operations Summary Sector Revenue & EBIT Margin u Strong topline growth, challenges in underlying profitability: 1H FY 17 – 1H FY 19 • Good growth in revenue resulting from the new acquisition 40Bn 15% Atlas, accelerated contribution by Consumer and Healthcare 10.2% 8.7% segments. 8.0
Slide 16: Q2 FY 2018–19: Performance Update
Q2 FY 2018–19: Performance Update Revenue EBIT Earnings 20Bn 2.0Bn 2.0Bn 44.3% 37.5% 15Bn 1.5Bn 1.5Bn 8.6% -6.0% 27.6% 10Bn 1.0Bn 1.0Bn -14.3% 16.5Bn 1.5Bn 5Bn 11.4Bn 0.5Bn 1.1Bn 0.5Bn 0.7Bn 0.9Bn 0Bn 0.0Bn 0.0Bn Q2 FY 18 Q2 FY 19 Q2 FY 18 Q2 FY 19 Q2 FY 18 Q2 FY 19 • All sectors had strong revenue
Slide 17: 1H FY 2018–19: Sector Highlights
1H FY 2018–19: Sector Highlights Sector Highlights during 1H Revenue EBIT Pricing and favorable product mix in personal care segment. Consumer u Sector LKR Bn % LKR Bn % u Flat growth in the personal wash and home care segments. u School and Office supplies made a significant contribution. Consumer
Slide 18: Consumer Sector Performance: 1H 2018–2019
Consumer Sector Performance: 1H 2018–2019 No. 1 School & Office Supplies Brand Sector Revenues & EBIT in LKR 1H FY 17 – 1H FY 19 No. 1 Baby Care Brand 16Bn 2.0Bn 1.50 12Bn 1.20 1.5Bn 0.96 No. 2 Oral Care Player 8Bn 1.0Bn 12.1 4Bn 8.1 7.7 0.5Bn No. 1 Hair Oil 0Bn 0.0Bn 1H FY 17 1H FY 18 1H FY 19 Sect
Slide 19: International entry to Bangladesh with Kumarika
International entry to Bangladesh with our brand Kumarika Sector Highlights International Segment u Relaunched Kumarika hair oil with improved formulation in December 1H FY 17 – 1H FY 19 2017 100% u Continued focus on expanding into rural markets in Bangladesh 15% 14% 9% u Introduced a marbleized he
Slide 20: Healthcare Sector Performance: 1H 2018–2019
Healthcare Sector Performance: 1H 2018–2019 Hemas Healthcare Sectors Sector Revenues & EBIT in LKR 1H FY 17 – 1H FY 19 16Bn 1.1 1.2Bn 1 Pharma Manufacturing 1.0 1.0 12Bn 0.8Bn 8Bn 13.4 10.5 0.4Bn 4Bn 9.1 2 Pharma Distribution 0Bn 0.0Bn 1H FY 17 1H FY 18 1H FY 19 Sector Revenue EBIT 3 Hospitals Sourc
Slide 21: Mobility Sector Performance: 1H 2018–2019
Mobility Sector Performance: 1H 2018–2019 Sector Revenues & EBIT in LKR 1H FY 17 – 1H FY 19 2Bn 0.6Bn 0.4 0.4 0.4Bn Logistics 1Bn 0.2 1.3 1.5 0.2Bn 0.8 0Bn 0.0Bn 1H FY 17 1H FY 18 Q2 FY 19 Sector Revenue EBIT Business Update u The new logistics park facility is now up and running with newly secured
Slide 22: Leisure, Travel & Aviation Sector Performance
Leisure, Travel & Aviation Sector Performance: 1H 2018–2019 Sector Revenues & EBIT in LKR 1H FY 17 – 1H FY 19 Hotels 2Bn 500Mn 1.8 1.8 1.6 1Bn 250Mn 0Bn 0Mn 30.2 -189.3 -212.9 -1Bn -250Mn 1H FY 17 1H FY 18 1H FY 19 Travel Sector Revenue EBIT HEMAS TRAVELS Business Update u Part closure at Avani Bent
Slide 23: Investment Highlights
Investment Highlights Total Shareholder Return (%) Return on Equity (%) Return on Capital Employed 50% 39.0% 20% 20% 25% 15.5% 13.7% 13.5% 11.2% 11.0% 11.3% 11.8% 0% 10% 10% -25% -30.8% -50% 0% 0% FY 17 FY 18 YTD 19 Q2 FY 17 Q2 FY 18 Q2 FY 19 Q2 FY 17 Q2 FY 18 Q2 FY 19 EPS Walk 4 31% Increase 3 3% 2
Slide 24: Driving digital and innovation
Driving digital and innovation u Being driven by Innovation is a core value of Hemas Group, and our digital strategy is at the forefront of our drive towards reinvention in preparation for the business world of tomorrow. Ayubo.life Focusing on making Health and wellness more accessible digitally, co
Slide 25: We continue to invest in people
We continue to invest in people Future Leaders’ Be your best self Programme • “360 You”, the Hemas Employee Value • Third year of development program Proposition was launched in October 2017. in partnership with Indian Institute of Management Bangalore (IIMB), to • “360 You” is an expression of how
Slide 26: Sustainability & Wellness
Sustainability & Wellness Group Environmental Goals by 2025 Engaging with Our Community Reduction of consumption of water by 50% Reforesting 50% of energy • Scholarship programme in • 45 Pre school consumption to be Zero waste partnership with ministry • 3500+ children impacted of child affairs rene
Slide 27: 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