Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — FY2019-20 Earnings Presentation
35 slides from Hemas's earnings presentation, Jun 24, 2020
Slide 1: Investor Presentation
Investor Presentation Hemas Holdings PLC FY 2019–2020 June 24, 2020
Slide 2: Hemas Holdings PLC: Our portfolio
Hemas Holdings PLC: Our portfolio Home & Personal care SL (H&PC) 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 re M Hotels Logistics Maritime Aviation Copyright © 2020 Hemas
Slide 3: Impact from COVID-19 in Sri Lanka and the Group's Response
Impact from COVID-19 in Sri Lanka and the Group’s Response u Following the outbreak of Covid-19 in Sri Lanka, the Government of Sri Lanka (GoSL) declared an island-wide curfew, imposed from the 20th March 2020 onwards. The restrictions were waived only for those engaged in services classified as 'es
Slide 4: Impact from COVID-19 to the Group
Impact from COVID-19 to the Group Portfolio Rating | On Track Portfolio Rating | Potential short term to medium term recovery HEALTHCARE CONSUMER Revenue LKR 31Bn | EBIT LKR 2.3Bn Revenue LKR 24Bn | EBIT LKR 1.9Bn • Pharmaceutical distribution is operating at normal levels • H&PC demand initially de
Slide 5: 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 FY 2019-20 Mobility Other Leisure, Travel, Sri Lanka’s Largest & Aviation* 4% 1% 6% Pharma Supplier Luxury to Boutique Hotel Properties 39% 50% Consumer Healthcare Partnered wi
Slide 6: HHL Group Performance: Strong rebound in the second half of FY20
HHL Group Performance: Strong rebound in the second half of FY20 Group Earnings in LKR 4,500 FY 2018 – FY 2020 u FY 2019/20 has been the most challenging in the 70 year history of the Group with performance impacted by the: 3,500 u Easter Sunday 2019 terrorist attacks Millions u Covid-19 pandemic ou
Slide 7: HHL Group Performance: Five year summary
HHL Group Performance: Five year summary Group Revenue and % Growth EBIT and EBIT margin (%) FY 2016 – FY 2020 FY 2016 – FY 2020 6 11.0% 12% 10.4% 75 40% 28.5% 8.8% 10% 8.5% LKR Billions 65 LKR Billions 30% 4 8% 55 14.9% 16.9% 20% 5.8% 14.3% 6% 45 5.7 64 4.8 62 10% 4.2 35 2 4.0 4% 50 3.6 43 38 0% 2%
Slide 8: Hemas Holdings PLC: Our Group
Hemas Holdings PLC: Our Group u Market cap: LKR 33.5 billion (US$ 181 million) u Shareholding structure: Esufally family holds 64.3%, 35.7% public holding. u Governance: • HHL is governed by a 10-member board including 5 Independent Directors who are thought leaders in their respective fields of FMC
Slide 9: Hemas Journey: 70 years of serving the nation
Hemas Journey: 70 years of serving the nation Ventured into manufacturing Widened array of Extended into Sold N*able + personal care Home & Personal the hospital Sold Power Travel and products care (H&PC) brands space Business Aviation 1948 1970s 2003 2013 2018 1960s 1980s 2007 2014 2020 Started Ext
Slide 10: 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 Delivering quality medicines and consumer brands that delight therapies to patients who need them • Consolidate market-leading positions • Exceptional supp
Slide 11: Connecting suppliers with customers with unique experiences and digital solutions
… And connecting suppliers with their customers 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 Connect patients
Slide 12: Industry Focus: Home & Personal Care Sri Lanka
Industry Focus: Home & Personal Care Sri Lanka—driving branded personal care consumption in emerging categories Household Final Consumption in Constant LKR Mn u Consumption Expenditure remained subdued although some recovery 2014–2019 was seen towards the end of 2019. 3 year CAGR: 3.4% u Sri Lanka’s
Slide 13: School & Office Supplies: Strong outlook as education spending deepens
School & Office Supplies: Strong outlook as education spending deepens in importance to the South Asian householder Education spend as a % of total Private Consumption Expenditure u Education: an investible asset for the Sri Lankan 2017–2019 family: 1.2% 1.2% 1.3% • 4.5 million school going populati
Slide 14: Consumer Sector Performance: FY 2019–2020
Consumer Sector Performance: FY 2019–2020 No. 1 School & Office Supplies Brand Sector Revenues & EBIT in LKR FY 18 – FY 20 No. 1 Baby Care Brand 30Bn 2,738 3,000Mn 25Bn 20Bn 1,904 25.6 No. 2 Oral Care Player 15Bn 16.5 2,000Mn 10Bn 5Bn 23.8 No. 1 Hair Oil 1,433 0Bn 1,000Mn FY 18 FY 19 FY 20 Sector Re
Slide 15: Consumer Sector Performance: New Product Launches and Re-launches
Consumer Sector Performance: New Product Launches and Re-launches Newly launched Family Soap Brand Shield Hand Sanitizer Professional Bags Ex Books with QR codes Max Force Pen Trendy Bags Atlas 3D CR Book Diva – purple lotus and Lavender Baby Cheramy pull- up pants Jambo Pastel Box Gripe Mixture Pos
Slide 16: Home & Personal Care—International: Kumarika to select South Asian markets
Home & Personal Care—International: Taking the herbal beauty equity of Kumarika to select South Asian markets u Rapid growth of personal care consumption in emerging FMCG Sales Growth, Bangladesh middle class, adding nearly 30Mn consumers through 2030. FY 14 – FY 20 15% u Seeking functional, modern
Slide 17: Home & Personal Care International with our brand Kumarika
Home & Personal Care International with our brand Kumarika Sector Highlights International Segment as a % of total H&PC segment u New brand architecture on Kumarika was introduced to the market in FY 18 – FY 20 May 2019 100% u Continued focus on expanding into rural markets in Bangladesh. 15% 17% 16
Slide 18: Healthcare: Rethinking private healthcare and widening access
Healthcare: Rethinking private healthcare and widening access to medicines, wellness products and healthcare services u Healthcare spend driven by growing burden of NCDs. Growth in Healthcare spending and growth in Healthcare revenue u Middle class consumers seeking convenience: 50% of patients use
Slide 19: Healthcare Sector Performance: FY 2019–2020
Healthcare Sector Performance: FY 2019–2020 Hemas Healthcare Sectors Sector Revenues & EBIT in LKR FY 18 – FY 20 35Bn 2,297 2,181 2,259 2,500Mn 1 Pharma Manufacturing 30Bn 2,000Mn 25Bn 20Bn 27.7 1,500Mn 23.0 31.4 15Bn 1,000Mn 10Bn 2 Pharma Distribution 500Mn 5Bn 0Bn 0Mn FY 18 FY 19 FY 20 Sector Reve
Slide 20: Mobility: Capitalising on Sri Lanka's geo-strategic location
Mobility: Capitalising on Sri Lanka’s excellent geo-strategic location u Port of Colombo(PoC) handled a throughput of 7.2Mn TEU’s with a growth of 2.6% in 2019/20. Colombo Port’s Throughput (TEU) 2015 – 2019 u Contraction in domestic volumes in line with the aforementioned slowdown in global trades
Slide 21: Mobility Sector Performance: FY 2019–2020
Mobility Sector Performance: FY 2019–2020 Sector Revenues & EBIT in LKR FY 18 – FY 20 3Bn 836 1,000Mn 3Bn 692 800Mn Logistics 2Bn 2.8 2.8 478 600Mn 2Bn 400Mn 1Bn 2.3 1Bn 200Mn 0Bn 0Mn FY 18 FY 19 FY 20 Sector Revenue EBIT Business Update u Full year of operation at the new facility u Container depot
Slide 22: Leisure: Focusing on experiential leisure
Leisure: Focusing on experiential leisure u Sri Lanka ranked No.1 travel destination in 2019 by Lonely Planet Tourist Arrivals and Occupancy 2016 – 2020 u Long haul travellers (Europe, Australia) continue to 4Mn 75% 73% 75% 80% contribute significantly to source markets. 57% u Rise of Asian travelle
Slide 23: Leisure, Travel & Aviation Sector Performance: FY 2019–2020
Leisure, Travel & Aviation Sector Performance: FY 2019–2020 Sector Revenues & EBIT in LKR FY 18 – FY 20 5Bn 600Mn 416 4Bn 400Mn 3Bn 214 200Mn 2Bn 4.2 5.0 3.6 1Bn -131 0Mn 0Bn -200Mn FY 18 FY 19 FY 20 Hotels Sector Revenue EBIT Business Update u Rates across all properties reduced during the period u
Slide 24: Overview: FY 2019–2020
Overview: FY 2019–2020 - Strategic Priorities Update - Group Operational Highlights Copyright © 2020 Hemas Holdings PLC | www.hemas.com 24
Slide 25: Group Update: Executing on strategic priorities and capacity building
Group Update: Despite the setback during FY 20 we have been executing on our Strategic priorities and capacity building investments u Despite the challenging economic environment experienced during the year, Group continued to execute on the strategic priorities and capacity building investments dur
Slide 26: FY 2019–20 Operations Summary
FY 2019–20 Operations Summary Sector Revenue & EBIT Margin (%) u Group continued its recovery from the aftermath of the Easter Sunday crisis with post tax FY 18 – FY 20 profits of Rs.1.7Bn for the second half of the financial year, compared with the loss of Rs.298Mn reported in the first half. 70Bn
Slide 27: FY 2019–20 Sector Highlights
FY 2019–20 Sector Highlights u Segment experienced a sharp contraction in the first two quarters following the Easter Sunday attacks and Consumer a strong recovery in Q3 and Q4 until the nationwide lockdown in March Rev % EBIT % (LKR Bn) Growth (LKR Mn) Growth u Raw material prices remained steady d
Slide 28: Most Recent Quarter Performance: Q4, FY 2019–20
Most Recent Quarter Performance: Q4, FY 2019–20 - Group Operational Highlights Copyright © 2020 Hemas Holdings PLC | www.hemas.com 28
Slide 29: Q4 (3 months) FY 2019–20: Group Operational Highlights
Q4 (3 months) FY 2019–20: Group Operational Highlights Revenue EBIT Earnings 20Bn 1,500Mn 5.4% 1,000Mn 47.4% 6.8% -9.0% 800Mn 15Bn -28.4% 1,000Mn 600Mn -44.4% 10Bn 1,375 863 16.1 14.6 400Mn 500Mn 5Bn 480 985 200Mn 0Bn 0Mn 0Mn FY 19 FY 20 FY 19 FY 20 FY 19 FY 20 • Nationwide lockdown towards the latt
Slide 30: Investment Highlights, Digital & Innovation, People & Talent, Sustainability
- Investment Highlights - Digital & Innovation - People & Talent - Sustainability & Wellness Copyright © 2020 Hemas Holdings PLC | www.hemas.com 30
Slide 31: Investment Highlights
Investment Highlights Total Shareholder Return (%) Return on Equity (%) Return on Capital Employed 50% 20% 20% 16.3% 14.4% 25% 15.5% 12.6% 10.7% 9.6% 0% 10% 10% 4.4% -25% -23.5% -50% -39.1% 0% 0% FY 18 FY 19 FY 20 FY 18 FY 19 FY 20 FY 18 FY 19 FY 20 EPS Walk Increase Net Debt/EBITDA 7.00 Decrease 0.
Slide 32: 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 33: 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 • Successful completion of a third year Proposition was launched in October 2017 and is development program in partnership with Indian an expression of how Hemas commits to enrich Instit
Slide 34: Sustainability & Wellness
Sustainability & Wellness Group Environmental Goals by 2025 Engaging with Our Community Reduction of consumption of water by 50% 50% of reduction of energy consumption by 2022 and by 2025 • Scholarship programme in partnership with • 56 Pre schools Ministry of Women and Child Affairs • 3500+ childre
Slide 35: 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