John Keells Holdings PLC · CSELK:JKH.N0000
John Keells — Q4 2023/24 Earnings Presentation
38 slides from John Keells's earnings presentation, May 22, 2024
Slide 1: JKH Investor Presentation
JKH Investor Presentation Review of 4Q and annual performance for 2023/24 22 May 2024 Version 2.0
Slide 2: Recurring EBITDA: For the quarter ended 31 March
Recurring EBITDA: For the quarter ended 31 March Recurring EBITDA* Q4 2023/24 Q4 2022/23 Variance Variance % (Rs. Million) Transportation 2,328 1,537 791 51 Consumer Foods 2,140 540 1,600 297 Retail 2,402 2,176 226 10 Leisure 5,150 3,831 1,319 34 Property (634) 466 (1,100) (236) Financial Services 1
Slide 3: Quarterly recurring EBITDA movement
Quarterly recurring EBITDA movement Recurring EBITDA 2022/23 2023/24 (Rs. Million) Q4 Q1 Q2 Q3 Q4 Transportation 1,537 1,615 1,700 1,928 2,328 Consumer Foods 540 720 1,237 897 2,140 Retail 2,176 1,987 1,983 2,390 2,402 Leisure 3,831 284 1,065 2,560 5,150 Property 466 187 (435) 60 (634) Financial Ser
Slide 4: Recurring EBITDA: For the year ended 31 March
Recurring EBITDA: For the year ended 31 March Recurring EBITDA* 2023/24 2022/23 Variance Variance % (Rs. Million) Transportation 7,570 11,963 (4,393) (37) Consumer Foods 4,993 3,184 1,809 57 Retail 8,762 8,779 (17) 0 Leisure 9,059 8,604 455 5 Property (822) (265) (557) (210) Financial Services 9,296
Slide 5: Annual recurring EBITDA movement
Annual recurring EBITDA movement Recurring EBITDA 2023/24 2022/23 2021/22 2020/21 (Rs. Million) Transportation 7,570 11,963 6,141 3,610 Consumer Foods 4,993 3,184 3,485 3,318 Retail 8,762 8,779 7,549 5,523 Leisure 9,059 8,604 3,785 (3,588) Property (822) (265) 7,867 (17) Financial Services 9,296 6,4
Slide 6: Quarterly movement of finance costs
Quarterly movement of finance costs Finance Costs Q4 Q3 Q2 Q1 Q4 (Rs. Million) 2023/24 2023/24 2023/24 2023/24 2022/23 Transportation 149 156 178 190 178 Consumer Foods 155 179 173 249 332 Retail 672 731 832 971 1,082 Leisure (1,515)* 983 2,928 843 864 Property 29 34 27 31 25 Financial Services - 0.
Slide 7: Recurring PBT: For the quarter ended 31 March
Recurring PBT: For the quarter ended 31 March Recurring PBT Q4 2023/24 Q4 2022/23 Variance Variance % (Rs. Million) Transportation 1,939 1,081 858 79 Consumer Foods 1,619 (113) 1,731 1,538 Retail 1,117 321 795 248 Leisure 8,078 1,452 6,626 456 Property (814) 598 (1,412) (236) Financial Services 1,86
Slide 8: Recurring PBT: For the year ended 31 March
Recurring PBT: For the year ended 31 March Recurring PBT 2023/24 2022/23 Variance Variance % (Rs. Million) Transportation 6,401 10,903 (4,502) (41) Consumer Foods 2,957 1,052 1,905 181 Retail 2,933 504 2,429 482 Leisure 3,313 (386) 3,699 958 Property (857) (2,186) 1,329 61 Financial Services 9,293 6
Slide 9: Key financial indicators
Key financial indicators 2023/24 31 March 31 March (Rs. Million) 31 March 31 December 2023 2022 Total debt* excl. leases and incl. convertible 214,101 238,797 229,749 debenture 234,701 Total debt excl. leases and convertible debenture 203,899 218,063 211,369 Cash and cash equivalents 86,828 93,775 1
Slide 10: Overview of ESG initiatives
Overview of ESG initiatives Environmental, Social and Governance (ESG) Persons Benefited CSR Focus Areas Initiatives: in 2023/24 ▪ The Group undertook initiatives to further strengthen its ESG framework and identify focus Health 1,325,631 areas for each industry Group. ▪ Benchmarking against regiona
Slide 11: Transportation: Port of Colombo
Transportation: Port of Colombo Port of Colombo Port of Colombo Volumes 1,000 894 900 846 808 796 800 770 TEU'S 000 700 653 585 600 480 462 500 440 459 482 400 446 428 408 300 Q4 Q1 Q2 Q3 Q4 2022/23 2023/24 SAGT SLPA CICT *SLPA includes volumes of JCT and ECT terminals 11
Slide 12: WCT-1: Construction progress
WCT-1: Construction progress ▪ The construction work on the West Container Terminal (WCT-1) at the Port of Colombo is progressing well, with all work relating to the first phase of the project being awarded. ▪ The first batch of quay and yard cranes is expected to arrive in August 2024, following wh
Slide 13: Transportation: Q4 2023/24
Transportation: Q4 2023/24 Port Business (South Asia Gateway Terminal) Q4 Earnings Update: 2022/23 2023/24 Volumes (TEUs) Q4 Q4 Q4 Q1 Q2 Q3 Q4 (Rs. mn) 2023/24 2022/23 SAGT 408,261 445,515 482,255 427,922 462,379 Recurring 2,328 1,537 Domestic: EBITDA Transshipment 13:87 10:90 10:90 11:89 10:90 volu
Slide 14: Consumer Foods: Q4 2023/24
Consumer Foods: Q4 2023/24 Q4 Earnings Update: Key performance 2022/23 2023/24 Q4 Q4 indicators (%) (Rs. mn) Q4 Q1 Q2 Q3 Q4 2023/24 2022/23 Volume growth: Recurring 2,140 540 EBITDA Frozen Confectionery (FC) (30) (10) (2) (2) 24 Beverages (CSD) (40) (3) 5 0 42 ▪ Both the Beverages and FC businesses
Slide 15: Consumer Foods: 2023/24
Consumer Foods: 2023/24 Key performance indicators (%) 2019/20 2020/21 2021/22 2022/23 2023/24 Volume growth: Frozen Confectionery 3 (1) 17 (7) 2 Beverages (CSD) 7 (14) 18 (7) 10 Convenience Foods (0) (6) 12 (22) (9) Recurring EBITDA margin 20 20 17 10 15 Expansion Strategies: Partnership with Relia
Slide 16: Beverages and FC: EBITDA margin analysis 2017/18 – 2023/24
Beverages and FC: EBITDA margin analysis 2017/18 – 2023/24 CSD volumes (indexed) FC volumes (indexed) 120 200 100 160 80 120 60 80 40 20 40 0 0 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Key negative impacts
Slide 17: Retail: Q4 2023/24
Retail: Q4 2023/24 Supermarket business: Q4 Earnings Update: Key performance 2022/23 2023/24 Q4 Q4 indicators (%) (Rs. mn) Q4 Q1 Q2 Q3 Q4 2023/24 2022/23 Same store sales growth 30.1 17.6 10.4 10.7 10.7 Recurring 2,402 2,176 EBITDA Same store footfall growth 0.1 8.8 10.6 15.7 14.4 Average basket val
Slide 18: Retail: 2023/24
Retail: 2023/24 Supermarket business: Profitability margin (%) 2019/20 2020/21 2021/22 2022/23 2023/24 Same store sales growth 4.0 (8.6) 12.9 47.6 12.3 Same store footfall growth 1.8 (31.5) 4.5 28.3 12.3 Average basket value growth 2.2 33.4 8.0 15.1 (0.1) Recurring EBITDA (Rs.Milllion) 4,267 4,144 5
Slide 19: Supermarket EBITDA margin recovery despite electricity cost impact
Supermarket business EBITDA margin recovery trend despite significant electricity cost impact EBITDA and electricity cost 2,500 2,500 2,000 2,000 Electricity costs (Rs. million) EBITDA (Rs. millions) 1,500 1,500 1,000 1,000 500 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022/23 2023/24 EBITDA Elecricity Electr
Slide 20: Retail: Q4 2023/24 vs Q4 2022/23
Retail: Q4 2023/24 vs Q4 2022/23 Same Store Same Store ABV Sales Footfall (3.2)% 10.7% 14.4% Q4 2022/23: Q4 2022/23: Q4 2022/23: ▪ Despite inflation moderating, prices ▪ Customer Count was maintained despite ▪ March 2023 NCPI (YoY) – 49.2%. remained relatively higher compared the challenging operati
Slide 21: Tourist arrivals to Sri Lanka: recovery trend post-pandemic
Tourist arrivals to Sri Lanka: recovery trend post-pandemic Sri Lanka - Monthly Tourist Arrivals 280 Month 2018 2023 2024 240 Jan 238,924 102,545 208,253 Feb 235,618 107,639 218,350 200 Mar 233,382 125,495 209,181 Apr 180,429 105,498 148,867 Arrivals ('000) 160 May 129,466 83,309 72,912 * Jun 146,82
Slide 22: Tourist arrivals to the Maldives: recovery trend post-pandemic
Tourist arrivals to the Maldives: recovery trend post-pandemic The Maldives - Monthly Tourist Arrivals 240 Month 2019 2023 2024 Jan 151,552 172,499 192,385 200 Feb 168,583 177,915 217,392 Mar 162,843 173,514 194,227 160 Apr 163,114 164,357 168,647 Arrivals ('000) May 103,022 120,959 82,551* 120 Jun
Slide 23: Leisure: Q4 2023/24
Leisure: Q4 2023/24 Q4 Earnings Update: 2022/23 2023/24 Q4 Q4 Key indicators (Rs. mn) Q4 Q1 Q2 Q3 Q4 2023/24 2022/23 Colombo Hotels* Recurring 5,150 3,831 EBITDA Occupancy (%) 62 49 67 57 67 ARR (USD) 63 70 69 88 84 ▪ Profitability was driven by a strong recovery EBITDA Margin (%) 14 (3) 13 16 18 in
Slide 24: Leisure: 2023/24
Leisure: 2023/24 2022/23 2023/24 Sector Occupancy (%) ARR (USD) Occupancy (%) ARR (USD) Colombo Hotels* 42 64 60 78 Sri Lankan Resorts 41 65 68 79 Maldivian Resorts** 88 255 86 275 *Excludes “Cinnamon Red Colombo”. **ARRs net of Green tax and allocation (F&B charge). ▪ The Sri Lankan Leisure busines
Slide 25: City of Dreams Sri Lanka
City of Dreams Sri Lanka 25
Slide 26: City of Dreams Sri Lanka
City of Dreams Sri Lanka Phase 1 in Q3 2024/25 Opening of 'Cinnamon Life' hotel, restaurants and banquet facilities. Phase 2 in mid-2025 Opening of 'Nuwa', gaming space and retail mall. 26
Slide 27: City of Dreams Sri Lanka
City of Dreams Sri Lanka ▪ Further to the announcement to the CSE on 30th April 2024, Melco Resorts & Entertainment Limited (‘Melco’) will be the operator of the gaming facility. ▪ Melco will invest ~USD 125 million in the fit-out and equipping of the gaming space, as the 100% shareholder of the gam
Slide 28: Partnership structure at the City of Dreams Sri Lanka
Partnership structure at the City of Dreams Sri Lanka 28
Slide 29: City of Dreams Sri Lanka – First fully-fledged integrated resort in South Asia
City of Dreams Sri Lanka – First fully-fledged integrated resort in South Asia - City of Dreams Macau (2009) ▪ The first iconic IR in the whole - Studio City (2015) of South Asia. - Altira Macau (2007) - Venetian Macau Casino (2007) ▪ No new developments planned - The Parisian Macau (2016) Macau wit
Slide 30: Snapshot of Melco integrated resorts
Snapshot of Melco integrated resorts Altira City of Dreams City of Dreams Studio City City of Dreams City of Dreams Macau Macau Manilla Macau Mediterranean Sri Lanka Taipa, Macau, Cotai, Macau, Metro Manilla, Cotai, Macau, Limassol, Colombo, Location SAR China SAR China Philippines SAR China Cyprus
Slide 31: Integrated Resorts – A key driver of tourism
Integrated Resorts – A key driver of tourism Singapore Macau Vietnam Sri Lanka 45 45 45 45 The Perisian Macao 40 40 40 40 35 City of Dreams 35 35 35 Venetian Macau Altira Macau 30 30 30 30 Millions Millions Millions Millions 25 25 25 25 of gambling in 2001 Liberalisation 20 20 20 20 Opening of 2 IRs
Slide 32: Casino revenues in regional Integrated Resorts
Casino revenues in regional Integrated Resorts Casino Marina Bay Sands - Solaire Resort & NagaWorld – ▪ Casino revenue at Marina Bay Sands, revenue Singapore Casino - The Cambodia Singapore, has recovered beyond pre- (USD million) Philippines pandemic levels. 2010 1,062 - 141 ▪ Solaire recorded reve
Slide 33: Gaming Spillover Benefits to Hotels within IRs
Gaming Spillover Benefits to Hotels within IRs ▪ The expectation that the two integrated resorts in Singapore Hotel Room Revenue and RevPAR - MBS would have meaningful positive impact on overall tourism, 700 608 hotel occupancy and rates, in a mature market such as 600 Singapore, demonstrates the an
Slide 34: Growth potential - MICE market
Growth potential - MICE market ▪ The number of outbound MICE travelers from India and China was at 2 million and 5 million (pre-pandemic). ▪ Colombo is well poised to take advantage of the growing outbound MICE travel from India. ▪ The ARR and Conference Package Rate is lower in Colombo than India.
Slide 35: Property: Q4 2023/24
Property: Q4 2023/24 Q4 Earnings Update: Number of units Number of remaining Q4 Q4 (As at 31 March 2024) (Rs. mn) sold units 2023/24 2022/23 Cinnamon Life: Recurring (634) 466 The Residence at Cinnamon Life 147 84 EBITDA The Suites at Cinnamon Life 109 87 ▪ The Property industry group EBITDA Total 2
Slide 36: VIMAN
VIMAN In September 2023, John Keells Properties launched its latest residential project, ‘VIMAN’, located in the heart of Ja-Ela, a suburban area in close proximity to Colombo. Spread across six acres with 418 apartments, ‘VIMAN’ is designed to provide a secure, family-friendly environment with conv
Slide 37: Financial Services: Q4 2023/24
Financial Services: Q4 2023/24 Union Assurance PLC: Q4 Earnings Update: Q4 Q1 Q2 Q3 Q4 Key performance 2022/23 2023/24 2023/24 2023/24 2023/24 Q4 Q4 indicators (%) (Jan-Mar (Apr-Jun (Jul-Sep (Oct-Dec (Jan-Mar (Rs. mn) 2023/24 2022/23 2023) 2023) 2023) 2023) 2024) Recurring GWP growth 5 21 15 12 17 1
Slide 38: THANK YOU
THANK YOU This document was produced by John Keells Holdings PLC for information purposes only. The information contained in this document are a review of the financial information pertaining to Q4 2023/24 and does not constitute an issue prospectus or a financial analysis. This Investor Presentatio
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