Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — Q1 FY2019-20 Earnings Presentation
31 slides from Hemas's earnings presentation, Aug 22, 2019
Slide 1: Investor Presentation Q1 FY 2019–2020
Investor Presentation Hemas Holdings PLC Q1 FY 2019–2020 August 22, 2019
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 © 2019 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 Q1 FY 2019-20 Mobility Other Leisure, Travel, 3% Sri Lanka’s Largest & Aviation 5% Pharma Supplier 5% Presence across the Entire Leisure & Travel Value Chain Healthcare 35% Con
Slide 4: Hemas Holdings PLC: Our Group
Hemas Holdings PLC: Our Group u Market cap: LKR 36.9 billion (US$ 210 million) u Shareholding structure: Esufally family holds 64.3%, 35.7% public holding. u Governance: • HHL is governed by a 11-member board including 5 Independent Directors who are thought leaders in their respective fields of FMC
Slide 5: HHL Group Performance: Five year summary
HHL Group Performance: Five year summary Group Revenue and % Growth EBIT and EBIT margin (%) FY 2014 – FY 2019 FY 2014 – FY 2019 6 11.0% 12% 10.4% 10.4% 75 40% 8.8% 10% 8.5% LKR Billions 65 LKR Billions 28.5% 30% 4 8% 55 19.2% 14.3% 6% 45 20% 5.7 16.9% 14.9% 64 4.8 2 4.0 4.2 4% 35 3.4 50 43 10% 25 3
Slide 6: 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 (H&PC) brands space Business 1948 1970s 2003 2013 2018 1960s 1980s 2007 2014 Started Extended in to IPO on the Acquired leading
Slide 7: Building strong consumer brands and affordable healthcare solutions
We do this by building strong consumer brands and providing access to a wide range of affordable healthcare solutions… Developing a portfolio of Delivering quality medicines and consumer brands that delight therapies to patients who need them • Consolidate market-leading positions • Exceptional supp
Slide 8: Connecting suppliers, travellers and digital-first wellness solutions
… 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 9: Industry Focus: Home & Personal Care Sri Lanka
Industry Focus: Home & Personal Care Sri Lanka—driving branded personal care consumption in emerging categories Household Final Consumption in Constant LKR Mn u Sri Lanka’s household consumption grows at 4%, and 2014–2018 personal care (H&PC) categories are highly 8,000 penetrated. CAGR: 3.9% 6,000
Slide 10: Home & Personal Care—International: Kumarika
Home & Personal Care—International: Taking the herbal beauty equity of Kumarika to select South Asian markets u Rapid growth of personal care consumption in FMCG Sales Growth, Bangladesh emerging middle class, adding nearly 30Mn FY 14 – FY 17 15% consumers through 2030. 10% 13.5% u Seeking functiona
Slide 11: School & Office Supplies: Strong outlook
School & Office Supplies: Strong outlook as education spending deepens in importance to the South Asian householder Monthly Household Education Spend u Education: an investible asset for the Sri Lankan 2010–2016 family: CAGR: 12.5% • 4.5 million school going population, with rapid rise of 2,500 2,06
Slide 12: Healthcare: Rethinking private healthcare and widening access
Healthcare: Rethinking private healthcare and widening access to medicines, wellness products and healthcare services Current spending on health as a % of GDP u Healthcare spend driven by growing burden of NCDs. 2013 – 2017 u Middle class consumers seeking convenience: 50% of patients use private ou
Slide 13: Mobility: Capitalising on Sri Lanka's geo-strategic location
Mobility: Capitalising on Sri Lanka’s excellent geo-strategic location u Colombo Port throughput grew by 5% for the 1H Colombo Port’s Throughput (TEU) 2019. 2015 – 2017 u Colombo Port ranked as the fastest growing port 8Mn 7.2 globally by Alphaliner in 1H 18/19 6.0 6.0 6Mn 5.0 u Domestic logistics i
Slide 14: Leisure: Experiential leisure with asset-light strategy
Leisure: Focusing on experiential leisure with an asset-light investment strategy u Sri Lanka is ranked the No.1 travel destination in 2019 by Tourist Arrivals and Occupancy Lonely Planet and continues to be a rich, yet-to-be 2015 – 2018 discovered destination for many travellers. 4Mn 75% 75% 73% 75
Slide 15: Overview: Q1 FY 2019–2020
Overview: Q1 FY 2019–2020 • Strategic Priorities Update • Group Operational Highlights • Sector Performance Copyright © 2019 Hemas Holdings PLC | www.hemas.com 15
Slide 16: Group Update: Executing on strategic priorities
Group Update: Despite the preliminary setback of FY 20 we have been executing on our Strategic priorities and capacity building investments The aftermath of the Easter Sunday Terror attacks impacted the normal course of business at the start of our fiscal year, but we are working hard to return to n
Slide 17: Q1 FY 2019–20 Operations Summary
Q1 FY 2019–20 Operations Summary: Consumer businesses experienced a slowdown Sector Revenue & EBIT Margin (%) u Challenging quarter with revenues below 2.3% last year, primarily as a Q1 FY 18 – Q1 FY 20 result of the terrorist attacks of 21st April with the aftermath causing economic slowdown and ch
Slide 18: Q1 FY 2019–20 Sector Highlights
Q1FY 2019–20 Sector Highlights Rev % EBIT % u Weaker performance from H&PC SL and Atlas Consumer (LKR Mn) Growth (LKR Mn) Growth u Disruption to the sales and distribution led to a fall in the General Trade performance 4,599 -14.3% 16 -97.2% u Schools were also closed for nearly half the quarter u H
Slide 19: Most Recent Quarter Performance: Q1, FY 2019–2020
Most Recent Quarter Performance: Q1, FY 2019–2020 • Group Operational Highlights • Quarterly Sector Update — Consumer – Domestic — Consumer – International — Healthcare — Mobility — Leisure, Travel and Aviation Copyright © 2019 Hemas Holdings PLC | www.hemas.com 19
Slide 20: Q1 FY 2019–20: Group Operational Highlights
Q1 (3 months) FY 2019–20: Group Operational Highlights Revenue EBIT Earnings 16,000Mn 1,000Mn -20.2% 3.5% 21.3% -2.3% 500Mn 800Mn 554 12,000Mn 300Mn 600Mn -176.8% 8,000Mn 100Mn 13,505 13,198 400Mn 896 -100Mn 4,000Mn -97.8% -426 200Mn -300Mn 20 0Mn 0Mn -500Mn FY 19 - Q1 FY 20 - Q1 FY 19 - Q1 FY 20 -
Slide 21: Consumer Sector Performance: Q1 FY 2019–2020
Consumer Sector Performance: Q1 FY 2019–2020 No. 1 School & Office Supplies Brand Sector Revenues & EBIT in LKR Q1 FY 18 – Q1 FY 20 No. 1 Baby Care Brand 6,000Mn 526 569 600Mn 5,000Mn 4,000Mn 400Mn No. 2 Oral Care Player 3,000Mn 5,366 4,599 2,000Mn 3,939 200Mn No. 1 Hair Oil 1,000Mn 16 0Mn 0Mn FY 18
Slide 22: International entry to Bangladesh with Kumarika
International entry to Bangladesh with our brand Kumarika Sector Highlights International Segment as a % of total H&PC segment u New brand architecture on Kumarika was introduced to the market in Q1 FY 18 – Q1 FY 20 May 2019 100% u Continued focus on expanding into rural markets in Bangladesh 15% 17
Slide 23: Healthcare Sector Performance: Q1 FY 2019–2020
Healthcare Sector Performance: Q1 FY 2019–2020 Hemas Healthcare Sectors Sector Revenues & EBIT in LKR Q1 FY 18 – Q1 FY 20 8,000Mn 600Mn 1 Pharma Manufacturing 509 499 6,000Mn 380 400Mn 4,000Mn 6,381 5,116 6,864 200Mn 2 Pharma Distribution 2,000Mn 0Mn 0Mn FY 18 - Q1 FY 19 - Q1 FY 20 - Q1 Sector Reven
Slide 24: Mobility Sector Performance: Q1 FY 2019–2020
Mobility Sector Performance: Q1 FY 2019–2020 Sector Revenues & EBIT in LKR Q1 FY 18 – Q1 FY 20 1,000Mn 400Mn 800Mn 300Mn Logistics 600Mn 188 217 200Mn 400Mn 121 623 718 100Mn 200Mn 614 0Mn 0Mn FY 18 - Q1 FY 19 - Q1 FY 20 - Q1 Sector Revenue EBIT Business Update u Delays in filling up the warehousing
Slide 25: Leisure, Travel & Aviation Sector Performance
Leisure, Travel & Aviation Sector Performance: Q1 FY 2019–2020 Sector Revenues & EBIT in LKR Q1 FY 18 – Q1 FY 20 Hotels 1,000Mn 100Mn 800Mn 0Mn 600Mn 792 687 682 -100Mn 400Mn 200Mn -140.0 -200Mn -200.0 -179.0 0Mn -300Mn FY 18 - Q1 FY 19 - Q1 FY 20 - Q1 Travel Sector Revenue EBIT HEMAS TRAVELS Busine
Slide 26: Investment Highlights
Investment Highlights Digital & Innovation People & Talent Sustainability & Wellness Copyright © 2019 Hemas Holdings PLC | www.hemas.com 26
Slide 27: Investment Highlights
Investment Highlights Total Shareholder Return (%) Return on Equity (%) Return on Capital Employed 50% 39.0% 20% 20% 25% 11.2% 15.5% 8.6% 13.0% 10% 10.5% 0% 10% 0% -25% 1.0% -50% -39.1% -10% -6.2% 0% FY 17 FY 18 FY 19 FY 18 - Q1 FY 19 - Q1 FY 20 - Q1 FY 18 - Q1 FY 19 - Q1 FY 20 - Q1 EPS Walk 2 1 19%
Slide 28: 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 29: 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 • Successful completion of a third year Proposition was launched in October 2017 and is development program in partnership with Indian an expression of how Hemas commits to enrich Instit
Slide 30: Sustainability & Wellness
Sustainability & Wellness Group Environmental Goals by 2025 Engaging with Our Community Reduction of consumption of water by 50% Zero waste Reforesting 50% of reduction of • Scholarship programme in • 56 Pre schools to landfills energy consumption by partnership with ministry • 3500+ children impact
Slide 31: 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