Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — FY2017-18 Earnings Presentation
31 slides from Hemas's earnings presentation, 2018
Slide 1: Hemas Holdings PLC Investor Presentation FY 2017–2018
Hemas Holdings PLC Investor Presentation FY 2017–2018 1
Slide 2: Hemas is a LKR 51 Bn Sri Lankan Wellness, Leisure and Mobility Business
Hemas is a LKR 51 Bn Sri Lankan Wellness, Leisure and Mobility Business Group Revenue by Segment FY 2017–18 Sri Lanka’s leading domestic H&PC manufacturer with Logistics & Largest private 25% market share Leading maritime Maritime 6% Other sector healthcare house representing 7% player with LKR 23 3
Slide 3: Financial Highlights FY 2017–2018
Financial Highlights FY 2017–2018 LKR Bn 2017/18 vs 2016/17 vs 2016/17 Revenue 50.87 + 7.46 + 17.2% • Enhanced performance of healthcare and mobility sectors contributing 61% to topline growth. • Consumer sector investment and start-up losses of LKR 465Mn: Atlas Axillia off-season losses, West Benga
Slide 4: Five Year Summary of Group Performance
Five Year Summary of Group Performance Group Revenue and % Growth Group Earnings and % Growth FY 2013 – FY 2018 FY 2013– FY 2018 55 51 40% 4 50 45% LKR Billions 43 LKR Billions 45 3 45% 38% 38 40 2 32% 20% 35 19% 20% 30 32 17.2% 1 17% 14.3% -5% 25 27 0 20 -20% 15 1% 0% -1 -24% -30% FY 2014 FY 2015 F
Slide 5: Key Performance Indicators
Key Performance Indicators As at 31st March 2015/16 2016/17 2017/18 ROE % 14.09% 14.89% 10.32% EPS (Rs.) 4.71 6.10 4.63 P/E 17.11x 17.82x 26.68x Gearing 18.50% 16.00% 18.70% Net Asset Value (Rs.) 38.41 43.50 46.24 Share Price as at March 31 (Rs.) 80.60 108.70 124.90 Market Cap in Mn as at March 31 (
Slide 6: History & Milestones
2011 1970 History & Milestones Launched Bangladesh Launched travel and tourism consumer business partnerships 2017 2007 Expansion of Rx & OTC 1962 Entered the Manufacturing & Production Hospital Sector Logistics Facilities of Personal care with French Multinational firm 2014 2003 1948 Exited Power 2
Slide 7: 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 Consumer 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 educatio
Slide 8: FY 2018 Business Highlights: Consumer & Healthcare
FY 2018 Business Highlights: Consumer & Healthcare Premiumisation and deepening our positions in fast Expanding our footprint in Emerging International Personal care growing Personal Care categories markets ▪ Re-launched Kumarika Shampoo & Dandex Shampoo ▪ Relaunched Kumarika hair oil with improved
Slide 9: FY 2018 Business Highlights: Leisure and Mobility
FY 2018 Business Highlights: Leisure and Mobility Expanded portfolio of maritime services and deepen offering in domestic logistics and distribution ▪ Launched “Spectra”, our joint venture 3PL brand with GAC Global, commencing operations with a new state-of-the-art container yard in the Muthurajawel
Slide 10: Hemas Consolidates FMCG position by acquiring Atlas
January 2018: Hemas Consolidates FMCG position by acquiring Atlas - Sri Lanka’s most loved brand of 2017 ▪ Hemas acquired 75.1% of Atlas Axillia Company (Private) Limited, Sri Lanka’s leading School and Office brand, for a purchase consideration of Rs.5.7Bn (10x PE and 6X Value Creation: continuing
Slide 11: People and Innovation
People and Innovation Second year of development program in partnership with Indian Institute of Management Bangalore (IIMB), to prepare Hemas Future Leaders Second year of Group-wide Wellness initiative to make Hemas the healthiest workforce in Sri Lanka with encouraging results Continue to invest
Slide 12: Sri Lanka Home & Personal Care Market
Sri Lanka Home & Personal Care Market Sri Lanka Home & Personal Care Industry ▪ Emerging categories of personal care and home Spending and Growth care are driving growth. 2013 – 2017 Personal Care Home Care ▪ FY 2017/18 was one of depressed consumer 6.2% 4.9% sentiment due to prolonged adverse weath
Slide 13: Building a stronger presence in Consumer markets
Building a stronger presence in Consumer markets • Growing Kumarika brand platform in Selective select South Asian markets Regional • Selectively introducing competitively Expansion differentiated products to other regional markets. • LKR 16Bn+ in FY 2018 Consumer Grow • Expanding Consumer share of
Slide 14: Our Domestic Consumer Business develops products specifically for Sri Lankan needs
Our Domestic Consumer Business develops products specifically for Sri Lankan needs Consumer Brands Portfolio: • Market Leadership – either #1 or #2 in categories • Developing portfolio for local needs • Building differentiated “Sri Lankan” brands FY 2018 Market Share Baby Care 45% Oral Care 25% Beau
Slide 15: Overseas we have entered Bangladesh with our brand Kumarika
Overseas we have entered Bangladesh with our brand Kumarika • Leading Value-added hair oil with Kumarika brand and 20%+ share Bangladesh Revenue in LKR Mn FY 14–FY 18 • Relaunched formulation and brand architecture 3,000 • Reaches 135,000 retail points directly 2,000 1,000 • Selective extension of t
Slide 16: Consumer Sector Performance FY 2017–2018
Consumer Sector Performance FY 2017–2018 Consumer Sector Revenues & EBIT in LKR Mn. Revenue EBIT FY14 – FY18 +8.6% -31.1% 20,000 17,397 2,500 16,013 14,298 2,000 15,000 2,074 FY 2018 Investments: LKR 595Mn impact to EBIT 11,895 9,545 1,768 1,500 • Profit improvement project 10,000 1,425 1,000 • Geog
Slide 17: Sri Lanka Healthcare Trends
Sri Lanka Healthcare Trends Private Retail Pharmaceutical Market Growth ▪ Healthcare spend driven by growing burden of NCDs, FY14–FY17 underpinned by aging population contributing to 25 increased Cardiovascular disease and Diabetes % Value growth 20 ▪ Middle class consumers seeking convenience: 50%
Slide 18: Hemas Healthcare: Leadership in Pharmaceutical Distribution, Manufacturing and Healthcare Services
Hemas Healthcare: Leadership in Pharmaceutical Distribution, Manufacturing and Healthcare Services • Leading private pharmaceutical manufacturer Rx & OTC • Approximately 20% share of government Pharmaceutical buyback programme to stimulate domestic manufacturing Manufacturing • Own-brand therapeutic
Slide 19: Hemas Pharmaceutical Distribution represents global pharmaceutical majors
Hemas Pharmaceutical Distribution represents global pharmaceutical majors including MNCs and Branded Generics 2,700 30% Pharmacies Market Share 18% Revenue Pharmaceutical 9 Growth over Distribution Therapeutic 3 year Categories CAGR 35+ Principals 2017 Entry into Myanmar www.hemas.com 19
Slide 20: Morison is a leading pharma manufacturer with its own OTC brands
Acquired in 2013, “Morison” is a leading pharma manufacturer, with its own loved OTC brands • Acquired by Hemas Holdings PLC. in 2013 • Portfolio includes Pharmaceutical manufacturing, distribution and own OTC brands • Significant contracts from the government through the buyback programme Morison 3
Slide 21: Hemas Hospitals & Laboratories
Hemas Hospitals & Laboratories Hemas Hospital & ▪ 3 multi-specialty, ACHSI accredited hospitals in the North of Laboratory Network, 2017 Colombo, East of Colombo and in the Southern Province. ▪ Leader in non-urban based hospital and diagnostics services, with a vision of reaching patient populations
Slide 22: Healthcare Sector Performance & Highlights
Healthcare Sector Performance & Highlights Revenue EBIT Healthcare Sector Revenues & EBIT in LKR Mn. FY14 – FY18 +22.6% +11.6% 23,105 25,000 2,500 18,842 20,000 16,143 2,305 2,000 Pharma Distribution: 13,921 2,065 15,000 12,064 1,780 1,500 ▪ Government-imposed price ceilings and price freeze have co
Slide 23: Sri Lanka's Logistics and Maritime Industry
Sri Lanka’s Logistics and Maritime Industry • Domestic logistics industry estimated to be USD 8Bn–USD9Bn • More customers demand end to end supply chain solutions from logistics operators 7%-8% Domestic Logistics • Market tendencies to move out from traditional warehouse model to 3PL • Infrastructur
Slide 24: 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, ▪ Appointed General Agents for Evergreen, the fourth largest warehousing, and transportation of proj
Slide 25: Mobility Sector Performance & Highlights
Mobility Sector Performance & Highlights Revenue EBIT Mobility Sector Revenues (LKR Bn) & EBIT (LKR Mn) +45.7% +85.3% FY16 – FY18 3,000 2,814 1,000 Logistics: 800 1,931 2,000 836 600 ▪ Spectra, our joint venture has grown from increased handling volumes 949 400 and 3PL services for new clients. 1,00
Slide 26: Sri Lanka Tourism Industry
Sri Lanka Tourism Industry ▪ Double-digit tourist arrivals growth down to 3% in 2017; decline in Tourist Arrivals in Millions emerging markets of China, Maldives, Middle East and Russia. 2012–2017 2.05 2.1 ▪ Tourist arrivals in December rose 8.8% year-on-year to an all-time 1.8 1.6 monthly peak, rev
Slide 27: 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 HEMAS TRAVELS ▪ Whol
Slide 28: Leisure Travel and Aviation Performance & Highlights
Leisure Travel and Aviation Performance & Highlights Revenue EBIT LTA Sector Revenues & EBIT in LKR Mn -3.0% -43.0% FY14 - FY18 ▪ Revenue decline is driven by inbound and outbound travel whilst 5,000 4,246 4,302 4,172 600 Serendib Hotels recorded a revenue growth 4,000 500 497 400 3,000 356 ▪ Overal
Slide 29: 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 30: 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 31: 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