Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — Q3 FY2018-19 Earnings Presentation
27 slides from Hemas's earnings presentation, Feb 12, 2019
Slide 1: Investor Presentation Q3 FY 2018–2019
Investor Presentation Hemas Holdings PLC Q3 FY 2018–2019 February 12, 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 Q3 YTD FY 2018-19 Mobility Other Leisure, Travel, 4% Sri Lanka’s Largest & Aviation 5% Pharma Supplier 6% Presence across the Entire Leisure & Travel Value Chain Healthcare 43%
Slide 4: Hemas Holdings PLC: Our Group
Hemas Holdings PLC: Our Group u Market cap: LKR 51 billion (US$ 285 million) u Shareholding structure: Esufally family holds 64.3%, 35.7% public holding. u Governance: • HHL is governed by a 12-member board including 6 Independent Directors who are thought leaders in their respective fields of FMCG,
Slide 5: 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 (HPC) brands space Business 1948 1970s 2003 2013 2018 1960s 1980s 2007 2014 Started Extended in to IPO on the Acquired leading
Slide 6: 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 consumer Delivering quality medicines and therapies brands that delight to patients who need them • Consolidate market-leading positions • Offer exceptiona
Slide 7: Connecting suppliers with customers, travellers and digital wellness
… 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 8: Home & Personal Care—Sri Lanka
Home & Personal Care—Sri Lanka: Driving branded personal care consumption in emerging categories Household Final Consumption in LKR Mn and as a % of GDP u Sri Lanka has high levels of private household 2013–2017 consumption—driving 65% of GDP. 8,000 CAGR: 2.0% u Encouraging growth momentum of brande
Slide 9: Home & Personal Care—International: Kumarika
Home & Personal Care—International: Taking herbal beauty equity of Kumarika to select South Asian markets u Rapid growth of personal care consumption in FMCG & Household Consumption Growth, Bangladesh emerging middle class, adding nearly 30Mn FY 14 – FY 17 15% consumers through 2030. 10% 13.5% u See
Slide 10: School & Office Supplies: Strong outlook
School & Office Supplies: Strong outlook as education spending deepens in importance to the South Asian householder u Education: an investible asset for the Sri Lankan Monthly Household Education Spend family: 2010–2016 CAGR: 12.5% • 4.5 million school going population, with rapid rise of 2,500 2066
Slide 11: Healthcare: Rethinking private healthcare
Healthcare: Rethinking private healthcare and widening access to medicines, wellness products and healthcare services Current spending on health as a % of GDP & overall u Healthcare spend driven by growing burden of NCDs. healthcare revenue growth at Hemas u Middle class consumers seeking convenienc
Slide 12: Mobility: Capitalising on Sri Lanka’s geo-strategic location
Mobility: Capitalising on Sri Lanka’s excellent geo-strategic location u Colombo Port ranked as the fastest growing port Colombo Port’s Throughput (TEU) globally by Alphaliner – 15.6% 1H 18/19 2015 – 2017 u Domestic logistics industry estimated to be 8Mn 7.2 USD 100Bn growing annual at 10-12%. 6.0 6
Slide 13: Leisure: Focussing on experiential leisure
Leisure: Focussing on experiential leisure with an asset-light investment strategy u Sri Lanka ranked No.1 travel destination in 2019 by Lonely Tourist Arrivals and Occupancy Planet with tourist arrivals up by 10.7% during the quarter. 2015 – 2018 u Long haul travellers (Europe, Australia) continue
Slide 14: Q3 YTD FY 2018–19: Group Update
Q3 YTD FY 2018–19: Group Update u We have been executing on our strategic plan by: • Integrating Atlas, our recent acquisition and new agency (Cipla), a leading agency (ranked #2) into the portfolio. • Building our international market presence by ramping up operations in West Bengal, Bangladesh and
Slide 15: Q3 YTD 2018–19: Operations Summary
Q3 YTD 2018–19: Operations Summary Sector Revenue & EBIT Margin u Strong topline growth, challenges in underlying profitability: Q3 YTD FY 17 – Q3 YTD FY 19 • Good growth in revenue resulting from accelerated contribution 50Bn 15% by Consumer and Healthcare segments. 2.0 • Year to date organic reven
Slide 16: Q3 FY 2018–19: Performance Update
Q3 (3 months) FY 2018–19: Performance Update Revenue EBIT Earnings 20Bn 46.8% 2.0Bn 92.6% 2.0Bn 15Bn 1.5Bn 1.5Bn 11% -19.9% 50.4% 10Bn 1.0Bn 1.9Bn 1.0Bn -21% 18.0Bn 12.3Bn 5Bn 0.5Bn 1.0Bn 0.5Bn 1.0Bn 0.7Bn 0Bn 0.0Bn 0.0Bn Q3 FY 18 Q3 FY 19 Q3 FY 18 Q3 FY 19 Q3 FY 18 Q3 FY 19 • Strong revenue growth
Slide 17: Q3 YTD 2018–19: Sector Highlights
Q3 YTD 2018–19: Sector Highlights Sector Highlights during Q3 Revenue EBIT Pricing and favorable product mix in personal care segment. Sector Consumer u LKR Bn % LKR Bn % u Flat growth in the personal wash and home care segments. Consumer 20.3 73% 2.8 100% u School and Office supplies made a signifi
Slide 18: Consumer Sector Performance
Consumer Sector Performance: Q3 YTD 2018–2019 No. 1 School & Office Supplies Brand Sector Revenues & EBIT in LKR Q3 YTD FY 17 – Q3 YTD FY 19 No. 1 Baby Care Brand 20Bn 2.77 3.0Bn 16Bn 1.70 2.0Bn 12Bn 1.40 No. 2 Oral Care Player 20.3 8Bn 11.8 11.7 1.0Bn 4Bn No. 1 Hair Oil 0Bn 0.0Bn Q3 YTD FY 17 Q3 YT
Slide 19: 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 Relaunched Kumarika hair oil with improved formulation in December 3Q YTD FY 17 – 3Q YTD FY 19 2017 100% u Continued focus on expanding into rural markets in Bangladesh 16
Slide 20: Healthcare Sector Performance
Healthcare Sector Performance: Q3 YTD 2018–2019 Hemas Healthcare Sectors Sector Revenues & EBIT in LKR Q3 YTD FY 17 – Q3 YTD FY 19 20Bn 1.7 2.0Bn 1 Pharma Manufacturing 1.5 1.6 16Bn 1.5Bn 12Bn 20.5 1.0Bn 8Bn 16.6 13.9 2 Pharma Distribution 4Bn 0.5Bn 0Bn 0.0Bn Q3 YTD FY 17 Q3 YTD FY 18 Q3 YTD FY 19 S
Slide 21: Mobility Sector Performance
Mobility Sector Performance: Q3 YTD 2018–2019 Sector Revenues & EBIT in LKR Q3 YTD FY 17 – Q3 YTD FY 19 3Bn 0.6Bn 0.6 0.6 2Bn 0.3 0.4Bn Logistics 1Bn 2.1 2.2 0.2Bn 1.3 0Bn 0.0Bn Q3 YTD FY 17 Q3 YTD FY 18 Q3 YTD FY 19 Sector Revenue EBIT Business Update u The new logistics park facility is now up and
Slide 22: Leisure, Travel & Aviation Sector Performance
Leisure, Travel & Aviation Sector Performance: Q3 2018–2019 Sector Revenues & EBIT in LKR Q3 YTD FY 17 – Q3 YTD FY 19 131.4 Hotels 4Bn 100Mn 3Bn 2.9 3.1 2.6 0Mn 2Bn -112.3 1Bn -100Mn -184.5 0Bn -200Mn Q3 YTD FY 17 Q3 YTD FY 18 Q3 YTD FY 19 Travel Sector Revenue EBIT HEMAS TRAVELS Business Update u P
Slide 23: Investment Highlights
Investment Highlights Total Shareholder Return (%) Return on Equity (%) Return on Capital Employed 50% 39.0% 20% 20% 16.7% 14.0% 14.8% 25% 15.5% 13.8% 12.2% 11.0% 0% 10% 10% -25% -28.4% -50% 0% 0% FY 17 FY 18 YTD 19 Q3 FY 17 Q3 FY 18 Q3 FY 19 Q3 FY 17 Q3 FY 18 Q3 FY 19 EPS Walk 7 64% Increase 6 5 4.
Slide 24: 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 25: 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 • Third year of development program Proposition was launched in October 2017. in partnership with Indian Institute of Management Bangalore (IIMB), to • “360 You” is an expression of how
Slide 26: Sustainability & Wellness
Sustainability & Wellness Group Environmental Goals by 2025 Engaging with Our Community Reduction of consumption of water by 50% Reforesting 50% of energy • Scholarship programme in • 49 Pre schools consumption to be Zero waste partnership with ministry • 3500+ children impacted of child affairs ren
Slide 27: 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