Hemas Holdings Ltd. · CSELK:HHL.N0000

Hemas — Q3 FY23 Earnings Presentation

43 slides from Hemas's earnings presentation, 2023

1. Slide 1: Hemas Holdings PLC Investor Presentation – Q3 FY23

   Hemas Holdings PLC Investor Presentation – Q3 FY23 1

2. Slide 2: Who We Are

   WHO WE ARE Key Milestones 1948 “Established Hemas Drugs Pvt Ltd” “IPO on the Colombo Stock 2003 Exchange” Established in 1948, Hemas Holdings is one of Sri Lankan’s leading conglomerate with focused interest in Consumer and Healthcare. “Extended operations into 2007 Listed in the Colombo Stock Excha

3. Slide 3: Implications of Key Macro Economic Parameters on HHL

   IMPLICATIONS OF KEY MACRO ECONOMIC PARAMETERS ON HHL Surge In Inflation Depreciation of LKR Global Commodity prices “Change in consumer buying “Input cost inflation with increased “Prices of key commodities saw a patterns with reduced disposable cost on imported raw materials and declining momentum

4. Slide 4: Key Strengths

   BOM Group CEO Nomination & Group Audit Governance Committee Committee Board Human Related Party Resources & Transactions Remuneration Review Committee Committee Diversified and competent Leadership Team Presence in key defensive segments Sound Corporate Governance Healthcare and Consumer Structure w

5. Slide 5: Corporate Governance

   Corporate Governance BOM Group CEO BOM (Board of Management) 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

6. Slide 6: Strategic Building Blocks

   STRATEGIC BUILDING BLOCKS Building more from New within the core New business and Efficiencies the core and Adjacencies Internationalisation Accelerate current Capturing new revenue Explore attractive Efficiency and business efforts to drive streams to further opportunities in new productivity to fu

7. Slide 7: Our Strategic Building Blocks – Q2 FY 2022-23

   Our Strategic Building Blocks – Q2 FY 2022-23 MORE FROM THE CORE ADJACENCIES • HPC SL: Launched lower grammage products to capture consumers • Atlas: Exports displayed progress in expanding to new geographical markets. purchasing smaller packs due to the current economic conditions (e.g • Hemas vent

8. Slide 8: New Product Launches during the Quarter

   New Product Launches during the Quarter Home and Personal Care Sri Lanka Home and Personal Care International ‘Tasty Country Flakers’ ‘Actisef’ Mini – 30g variant “Made with 100% natural ingredients and free of chemicals, ‘Baby Cheramy’ value preservatives, artificial packs flavours, and colours” ‘

9. Slide 9: Financial Snapshot

   FINANCIAL SNAPSHOT EBIT BY SEGMENT (LKR MN) 3,235 2,693 2,616 233 9M CONTRIBUTION TO GROUP 500 2,095 2% 40% 1,808 585 143 59% 113 1,785 15% 1,211 48% Revenue 46% 1,301 1,517 1,153 EBIT 1,271 1,393 887 639 658 Consumer Healthcare Mobility (54) (223) (157) (97) (410) Healthcare Consumer Mobility Other

10. Slide 10: Sector Performance Summary – 9M FY 2022-23

    Sector Performance Summary – 9M FY 2022-23 Revenue Walk EBIT Walk (LKR Mn) (LKR Mn) 1,101 110 -20 7,959 9,960 81,730 1,514 -248 2 14,293 5,254 57,722 9M FY 22 Healthcare Consumer Mobility Other 9M FY 23 9M FY 22 Consumer Healthcare Mobility Other 9M FY 23 Note: The ‘other segment’ includes the corpo

11. Slide 11: Sector Performance Summary – Q3 FY 2022-23

    Sector Performance Summary – Q3 FY 2022-23 Revenue Walk EBIT Walk (LKR Mn) (LKR Mn) 385 484 -352 3,235 29,770 3,930 21 -7 102 4,280 2,616 21,545 Q3 FY 22 Healthcare Consumer Mobility Other Q3 FY 23 Q3 FY 22 Consumer Healthcare Mobility Other Q3 FY 23 Note: The ‘other segment’ includes the corporate

12. Slide 12: Continuing Operation EPS and Capital Employed – 9M FY 2022-23

    Continuing Operation EPS and Capital Employed– 9M FY 2022-23 EPS Walk Sector Efficiency (LKR Per Share) Capital Employed, ROCE, and EBIT by Sector 4.53 -3.16 80% Mobility -1.02 LKR 1,166.3Mn Consumer -0.31 5.38 5.34 60% LKR 3,700.1 Mn 54.4% Healthcare LKR 3,817.3Mn 40% 34.4% Group ROCE :22.1% 9M FY

13. Slide 13: Consumer Brands

    Consumer Brands Home and personal care – Sri-Lanka Home and personal care – International Learning Segment 13 COPYRIGHT © 2022 | HEMAS HOLDINGS PLC

14. Slide 14: Consumer Brands

    Consumer Brands Contribution to Group Sector Performance – 9M FY 2022-23 Revenue % 46% Key Highlights Revenue (LKR Mn) 40.5% (YoY) 45% 13,628 • Consumers remained price sensitive on 12,000 the back of multiple tax reforms and Q3 FY23 10,119 9,698 8,713 inflationary pressure. 9,000 8,262 Q3 FY22 • Ma

15. Slide 15: 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 ‘Kumarika’ and ‘Dandex’ refill packs Inclusive Strong roots Parenting Stronger Make a Celebrating & Enabling Both parents together Positive D

16. Slide 16: 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 98% reached by Hemas #2 #2 brand In Laundry Care In Oral Care

17. Slide 17: Our Consumer Health Brands

    Our Consumer Health Brands Skincare Baby Care Cold and Flu 17 COPYRIGHT © 2022 | HEMAS HOLDINGS PLC

18. Slide 18: Update on Key Strategic Initiatives

    Opportunities in Urbanisation and Premiumisation will UPDATE ON KEY be the platform to drive growth STRATEGIC INITIATIVES Urban Population across peer nations 52% “Premiumisation and expanding into key 2021 2015 39% 35% Emerging Trends in underpenetrated categories will be the 31% the Consumer Space

19. Slide 19: Update on Key Strategic Initiatives

    UPDATE ON KEY Clean beauty that prioritises natural ingredients are a STRATEGIC INITIATIVES prime aspect in the future of personal care. Percentage of people who look for Global Natural and Organic “Fine blend of Innovation and the products that uses natural ingredients personal care Market ($ Bn) u

20. Slide 20: 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 Bangladesh. Rural penetration 20.5% by Hemas • Extensive product portfolio with multiple 2 Key categories Health soap

21. Slide 21: Home and Personal Care – Sri Lanka and International

    Home and Personal Care – Sri Lanka and International Sri Lanka International Revenue (LKR Mn) 57.0% Revenue Revenue • Volumes witnessed a declining momentum (YoY) amidst the inflationary pressure. 8,830 • With the challenging macro economic conditions, 7,799 • Value for money portfolio was extended

22. Slide 22: 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

23. Slide 23: Update on Key Strategic Initiatives

    UPDATE ON KEY Explore opportunities to expand geographical reach STRATEGIC INITIATIVES via partnering with global players Middle east Stationery market will grow “Learning Segment : Widening the business at a CAGR of 1.3% to reach $ 321.6 Global Stationery Market ($ Billion) Mn in 2025 scope to expa

24. Slide 24: Learning Segment

    Learning Segment Revenue 6 Key categories • Atlas maintained its market leading position despite the increased competition. 17.8% Revenue (LKR Mn) (YoY) • Building up to the back-to-school season, revenue witnessed a significant improvement High Efficiency and productivity 4,798 during the quarter.

25. Slide 25: The Growing Economy of Bangladesh

    THE GROWING ECONOMY OF BANGLADESH Promising Macro economic factors to support growth and expansion GDP Growth Forecasts $ 460.8 Bn GDP 2022 FY 2024-25 8.0% FDI friendly tax laws and incentives FY 2023-24 7.8% $ 2,730 Access to labour at attractive prices GDP Per Capita. FY 2022-23 7.2% Strategic Loc

26. Slide 26: Healthcare Sector

    Healthcare Sector Pharmaceutical Import, Marketing and Distribution Pharmaceutical Manufacturing Hospitals 26 COPYRIGHT © 2022 | HEMAS HOLDINGS PLC

27. Slide 27: Healthcare Sector

    Healthcare Sector Contribution to Group Sector Performance – 9M FY 2022-23 53% Revenue % Key Highlights Revenue (LKR Mn) 37.3% 53% (YoY) 15,675 16,523 15,757 • Sri Lanka continued to rely on multiple 16,000 donations and credit lines to finance the Q3FY23 14,000 12,427 medical needs of the country.

28. Slide 28: 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

29. Slide 29: Strategic Initiatives: Homagama Factory

    UPDATE ON KEY Opportunities to enter into global supply chain via STRATEGIC INITIATIVES contract manufacturing due to Sri Lanka’s proximity to “Homagama Factory” India and availability of infrastructure and know how Key Export Markets for Sri Lanka “Homagama factory: Annual capacity of 5 Global Phar

30. Slide 30: Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing

    Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing Revenue Revenue (LKR Mn) • Pharmaceutical arm continued to ensure product availability liaising with principals, banks and other stakeholders . 41.1% • Increased performance of the ‘Morison’ Branded Generics portfolio co

31. Slide 31: Hemas Hospitals Highlights

    The first Internationally accredited hospitals chain in Sri Lanka by the Australian Council on Healthcare Standards International Hemas Hospitals Highlights “The first Internationally accredited hospitals chain in Sri Lanka by the Australian Council on Healthcare Standards International (ACHSI)” Cen

32. Slide 32: We have a widespread Lab Network

    We have a widespread Lab Network 50+ Labs & Collection Centers Lab Network Highlights Q3 FY 2022-23 Performance across the Country Centers of Excellence: • Main Lab Services to Hospitals 266k+ (8 B2B Labs +3 B2B CCs) Test volumes • Outer Labs services across the country (14 Labs) 2k+ • Collection ce

33. Slide 33: Update on Key Strategic Initiatives

    UPDATE ON KEY Building depth and scale of identified anchor and super STRATEGIC INITIATIVES specialties “Capacity expansion via opportunities for Urology: The prevalence of Chronic Kidney organic and inorganic growth ” Disease is 15.1–22.9% in farming districts. Cardiovascular: Incidence of coronary

34. Slide 34: Hospitals

    Hospitals Revenue 170+ Beds • Core businesses (excluding COVID-19 related revenue) witnessed a growth of over 30% with Revenue (LKR Mn) high improved medical admissions. 13.0% 2,000 1,902 (YoY) 60% Hospital occupancy 1,802 1,747 Profitability 1,546 1,526 • Lower COVID-19 related revenue streams and

35. Slide 35: Mobility Sector

    Mobility Sector Maritime Aviation 35 COPYRIGHT © 2022 | HEMAS HOLDINGS PLC

36. Slide 36: Mobility Sector

    Mobility Sector Contribution to Group Sector Performance – 9M FY 2022-23 1% Revenue % Key Highlights Revenue (LKR Mn) 2% • YTD total throughput and transhipment 1,000 volumes at Port of Colombo declined 5.9% by over 7 % due to slow down in the Q3FY23 (YoY) global economy and reduced demand 444 469 Q

37. Slide 37: 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 250 k+ TEUs freight capacity of 75 tons. Represents the leading - 9M FY 23 Facilitating over 1000+ Emirates Passenger : feeder

38. Slide 38: Group Environmental Agenda

    GROUP ENVIRONMENTAL AGENDA Hemas will play a leading role in helping sustain and nurture all that is Sri Lankan Roof Mounted Solar Addressing Marine Pollution 25% 27,000+ KG Offsetting Group To Date Plastic Collection Electricity Consumption (9 Locations) 38 COPYRIGHT © 2022 | HEMAS HOLDINGS PLC

39. Slide 39: Supporting Our Communities

    SUPPORTING OUR COMMUNITIES Creating an inclusive world by eliminating inequality and creating a social security net Creating an inclusive world and eliminating inequality 5,000+ 100,000+ 4 Free Testing Children Training Sessions Tackling diabetes in sri lanka Providing essential learning Empowering

40. Slide 40: Sustainability Performance – Q3 2021-22 vs Q3 2022-23

    Sustainability Performance – Q3 2021-22 vs Q3 2022-23 Values of Fines for Non-Compliance Carbon Footprint (per Rs. Mn Revenue) 0.15 MT 29% with Laws and Regulations in the NONE Social Economic Area Water Consumption Total Work-Related Injury Rate (per Rs. Mn Revenue) 1.5 m3 32% (per 100 employee) no

41. Slide 41: Focus Areas

    FOCUS AREAS Short -Term Mid – Long Term Grow Market Share Acquisitions/expansion in consumer and healthcare Develop value creating products to cater to the evolving needs of the Grow in the Learning space by customers moving into adjacent spaces Expanding the regional footprint with high focus in Ba

42. Slide 42: Short Term Outlook and Strategies on Navigating the Economic Crisis

    SHORT TERM OUTLOOK AND STRATEGIES ON NAVIGATING THE ECONOMIC CRISIS • Leverage on the strong relationships with external and internal stakeholders to minimise the possible adverse impact on businesses due to temporary political and economic headwinds. • Implement strategies to maintain optimum level

43. Slide 43: Thank You!

    THANK YOU! COPYRIGHT © 2022 | HEMAS HOLDINGS PLC

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