Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — Q3 2016-17 Earnings Presentation
29 slides from Hemas's earnings presentation, 2017
Slide 1: Hemas Holdings PLC Investor Presentation YTD Q3 2016-17
Hemas Holdings PLC Investor Presentation YTD Q3 2016-17 1
Slide 2: Hemas is a LKR 38 Bn Sri Lankan Wellness, Leisure and Mobility Business
Hemas is a LKR 38 Bn Sri Lankan Wellness, Leisure and Mobility Business Group Revenue by Segment YTD FY 2016-17 Logistics & Largest private Maritime sector healthcare 4% Sri Lanka’s leading Other player with LKR 18 domestic H&PC Leading maritime 5% Bn. in revenues Leisure, Travel & manufacturer with
Slide 3: History & Milestones
1970 History & Milestones Launched travel and tourism partnerships 2007 2014 1962 Entered hospital space With an acquisition Exited Power Production of Personal care with French 2003 Multinational firm 2013 1948 IPO on Colombo Stock Acquired Rx and OTC Exchange manufacturing firm Established OTC & R
Slide 4: Across our businesses we are Enriching Lives and driving towards Market Leadership
Across our businesses we are Enriching Lives and driving towards Market Leadership Developing great Personal Care products and brands that delight Sri Lankan consumers Developing our regional footprint by tapping into high growth emerging markets Elevating our community with a focus on childhood edu
Slide 5: Business Highlights YTD 2016/17: Wellness
Business Highlights YTD 2016/17: Wellness Premiumisation and Deepening our Positions in fast growth PC categories ▪ Launched new Velvet bath and body range as a means of expanding our position in skincare. The range is designed for Sri Lankan skin ▪ Number of relaunches and refreshes took place duri
Slide 6: Business Highlights YTD 2016/17: Leisure and Mobility
Business Highlights YTD 2016/17: Leisure and Mobility Expanded portfolio of maritime services ▪ Secured our first mainline shipping Principal, Evergreen Shipping Lines– one of the largest callers at the Port of Colombo, a significant scale up for Hemas Maritime. ▪ Broke ground on "Hemas Logistics Ci
Slide 7: People and Innovation
People and Innovation Launched First year of development program in partnership with Indian Institute of Management Bangalore (IIMB), to prepare Hemas Future Leaders Launched a Group-wide Wellness initiative to make Hemas the healthiest workforce in Sri Lanka Trialling a Wellness Platform across the
Slide 8: Sri Lanka Personal Care Market
Sri Lanka Personal Care Market ▪ Consumer income growth bolstering PC spend Sri Lanka Home & Personal Care Industry Spending and Growth in LKR Bn. ▪ Consumers experimenting with more categories than before 2013–2016E 50 15% ▪ More focus on premiumisation, problem-solution and adult propositions in i
Slide 9: Our Consumer Business develops products specifically for Sri Lankan needs
Our Consumer Business develops products specifically for Sri Lankan needs ▪ 50 year old business and 6 Power Brands, that are household names ▪ Market leader in Baby care, Beauty soap and Hair oil ▪ Relentless focus on delighting the Sri Lankan consumer www.hemas.com 9
Slide 10: Hemas Consumer Bangladesh
Hemas Consumer Bangladesh ▪ Kumarika hair oil has 20% share in the value-added hair oil segment in Bangladesh ▪ 132,000 retailers reached through own distribution ▪ Launched 2 variants of a “Science + Nature” based face wash in 2016 under the Kumarika brand ▪ Consumer willingness to premiumise, expl
Slide 11: YTD Consumer Sector Performance & Highlights
YTD Consumer Sector Performance & Highlights ▪ Consumer sector revenues are Rs.12.3Bn Hemas Consumer Sector Revenues & EBIT in LKR Bn. FY 2012/13–2016/17 ▪ Total revenue growth of 10.1%, EBIT growth of 22.9% 16 2.0 12.3 12 11.2 1.5 ▪ Revenue growth driven by volume growth/ share gain in our major br
Slide 12: Sri Lanka Healthcare Trends
Sri Lanka Healthcare Trends Private Retail Pharmaceutical Market Growth ▪ Growing burden of NCDs, underpinned by aging population FY 2013–FY 2016 contributing to increased Cardiovascular disease and 25 Diabetes 20 ▪ % growth Middle class consumers seeking convenience: 50% of 15 patients use private
Slide 13: Hemas Healthcare: Leadership in Pharmaceutical Distribution, Manufacturing and Healthcare Services
Hemas Healthcare: Leadership in Pharmaceutical Distribution, Manufacturing and Healthcare Services ▪ Market leader in private retail pharmaceutical distribution services with 22% share ▪ Representation of major Multinational pharmaceuticals and Branded generics manufacturer Rx & OTC Pharmaceutical ▪
Slide 14: Hemas represents the largest global multinational pharmaceutical manufacturers
Hemas represents the largest global multinational pharmaceutical manufacturers 22% Market Share 3000+ Pharmacies Hemas Pharmaceuticals 35+ 9 Principals Therapeutic Categories www.hemas.com 14
Slide 15: J.L. Morisons Pharmaceutical Manufacturing
J.L. Morisons Pharmaceutical Manufacturing ▪ Hemas has grown JLM earnings at 33% CAGR since J.L. Morison’s Revenues & EBIT YTD Q3 FY 2013/14–2016/17 acquiring the business in 2013. 3.5 400 ▪ LKR Millions Manufacturer of over 70 formulations of high quality 3 300 LKR Billion 2.5 pharmaceutical and OT
Slide 16: Hemas Hospitals
Hemas Hospitals ▪ Leader in non-urban based hospital and diagnostics services, with a vision of reaching patient Hemas Hospital & populations where they live. Laboratory Network, 2016 ▪ 3 multi-specialty, ACHSI accredited hospitals in the North of Colombo, East of Colombo and in the Southern Provinc
Slide 17: YTD Healthcare Sector Performance & Highlights
YTD Healthcare Sector Performance & Highlights ▪ Healthcare sector revenues are Rs.13.9Bn Healthcare Sector Revenues & EBIT in LKR Bn. FY 2012/13–2016/17 ▪ Total revenue growth of 17%, EBIT growth of 14.6% 15 13.9 4 11.9 10.1 3 8.8 ▪ Revenue growth driven by good volume growth at Pharma 10 6.7 2 dis
Slide 18: Logistics and Maritime Industry
Logistics and Maritime Industry • Freighter rates to continued to see a drop during the past year with declining oil prices • 75% of shipping volumes are transshipments 7%-8% Domestic Logistics • Port of Colombo to serve as major transshipment hub for South- Asia Growth • Trend in low costs carriers
Slide 19: Maritime Logistics
Through our Mobility arm, we are securing new accounts and growing capacity in logistics, warehousing and haulage Logistics Maritime ▪ Integrated portfolio of container haulage, container operations, warehousing, ▪ Appointed General Agents for Evergreen, the fourth largest mainliner calling and tran
Slide 20: YTD Mobility Sector Performance & Highlights
YTD Mobility Sector Performance & Highlights ▪ Mobility sector revenues are Rs.1.3Bn. Mobility Sector Revenues (LKR Bn) & EBIT (LKR Mn) ▪ Total revenue growth of 95.5%, EBIT growth of 394% FY 2015/16–2016/17 ▪ Revenue growth driven largely through new mainline revenues 1.3 from Evergreen Shipping Li
Slide 21: Sri Lanka Tourism Industry
Sri Lanka Tourism Industry ▪ 2 million arrivals in 2016, growth of 22% CAGR Tourist Arrivals in Millions 2012–2016 ▪ Earnings crossed $3Bn though underestimated as the informal sector spend is not captured. 2.05 1.8 1.6 1.3 1.4 ▪ Sri Lanka’s graded (1⎼5 Star) establishments increased their capacity
Slide 22: Leisure, Travel and Aviation Business
Leisure, Travel and Aviation Business ▪ Ownership and operation of hotels through listed subsidiary Serendib Hotels PLC ▪ Joint Venture partnership with the Minor Group to develop Anantara and Avani brands ▪ Inbound Travel joint venture partnership with the Diethelm-Kellar Group ▪ Wholly-owned Outbo
Slide 23: YTD Leisure Travel and Aviation Performance & Highlights
YTD Leisure Travel and Aviation Performance & Highlights ▪ LTA sector revenues are LKR 2.9Bn, a revenue growth of 5.4% LTA Sector Revenues & EBIT FY 2015/16–2016/17 ▪ LTA experienced a decline in segmental profitability during the first nine month compounded by losses at Anantara Peace Haven 4 500 L
Slide 24: Group YTD Performance
Group YTD Performance Q3 YTD Group Revenue Group Earnings 40 30% 3 80% LKR Billions LKR Billions 30 2 40% 20% 20 10% 1 0% 10 0 0% 0 -40% Q3 2014/15 Q3 2015/16 Q3 2016/17 2014/15 2015/16 2016/17 Revenue % Growth Earnings % Growth Q3 YTD Group EBIT ▪ Group revenue rose by 12.9% to achieve Rs.31.9Bn 4
Slide 25: Financial Highlights
Financial Highlights 2014/15 2015/16 2016/17 (TTM) ROE % 12.9 14.1 13.8 EPS 3.7 4.6 5.5 Net Asset Value 30.3 38.4 41.5 Share Price as at Dec-31 73.7 80.6 98.0 Market Cap in Bn as at Dec-31 37.9 46.1 56.1 www.hemas.com 25
Slide 26: Group Annual Performance
Group Annual Performance Group Revenue and % Growth Group Earnings and % Growth FY 2011 – FY 2016 FY 2011 – FY 2016 60% 40 30% 3 LKR Billions 35 40% LKR Billions 30 2 20% 10% 25 0% 1 20 -20% 15 -10% 0 -40% 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2010/11 2011/12 2012/13 2013/14 2014/15 2015/1
Slide 27: Abhimana
Abhimana ▪ Abhimana is our ethos of sustainability that describes our vision of a sustainable and co-operative society, of people living and working together ▪ Inline with this, we have released our Sustainability Report providing insight into the Group’s sustainability philosophy and initiatives in
Slide 28: AYATI
AYATI ▪ First National Centre for Children with Disabilities to be constructed at the Faculty of Medicine of the University of Kelaniya in Ragama ▪ Hemas being the largest private sector healthcare Company in Sri Lanka took initiative to address a major gap in the national healthcare system by launc
Slide 29: Hemas Investor Relations
Hemas Investor Relations: Telephone: +94 11 4 731 731 (Ext. 1278) Email: ir@hemas.com Web: http://www.hemas.com Hemas Holdings PLC Hemas House, 75, Braybrooke Place, Colombo 2, Sri Lanka CONFIDENTIALITY AGREEMENT: Any confidential information discussed in this presentation shall be used by the recei