Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — Q4 FY2021-22 Earnings Presentation
37 slides from Hemas's earnings presentation, Mar 31, 2022
Slide 1: Hemas Holdings PLC Investor Presentation Q4 FY 2021-22
Hemas Holdings PLC Investor Presentation Financial Year ending March 31, 2022 – Q4 FY 2021-22 COPYRIGHT © 2022 | HEMAS HOLDINGS PLC
Slide 2: Our Portfolio
Our Portfolio Consumer Brands Healthcare Mobility • Home and Personal Care - • Pharmaceutical Import, • Maritime Sri Lanka (HPC SL) Marketing and Distribution • Aviation • Home and Personal Care - • Pharmaceutical Manufacturing - International (HPC Int) Morison • Learning Segment - Atlas • Hospitals
Slide 3: Macroeconomic Snapshot of Sri Lanka
Macroeconomic Snapshot of Sri Lanka Inflation LKR Depreciation Interest Rate GDP Colombo Consumer Price Index (CCPI) Official reserves continued to deteriorate The upward trend in interest rates GDP for Q4 of CY 2021 improved by 4% reached a record high of 18.7% YoY in while LKR depreciated to USD/L
Slide 4: Macroeconomic Snapshot Continued..
Macroeconomic Snapshot Continued.. Commodity Price Hike COVID-19 Update Pandemic Driven Volatility GSCI Commodity Index Global economic recovery Total confirmed cases Supply chain 800 725.3 and supply disruptions 663,689 disruptions 700 arising from geopolitical 557.4 561.7 tension between Russia 60
Slide 5: Our Strategic Building Blocks – Q4 FY 2021-22
Our Strategic Building Blocks – Q4 FY 2021-22 MORE FROM THE CORE NEW WITHIN THE CORE DRIVERS Accelerate current business efforts to drive Capturing new revenue streams to further higher value in core business strengthen the core Create sustainable • HPC SL : Relaunched Velvet soap and bodywash for m
Slide 6: Financial Snapshot of the Group
Financial Snapshot of the Group FY 2021-22 Group Revenue by Segment EBIT by Segment 11.9% FY 2021-22 FY 2021-22 (YoY) (LKR Mn) 6,783 LKR 78.8 Bn LKR 7.12 0.0% 8,000 (0.1%) 6,061 22.2% 30.5% 2.5% 1,308 7,000 (3.3%) 5,661 654 Revenue EPS 6,000 51 692 3,561 39.0% 5,000 3,017 478 3,348 (38.8%) 4,000 2,7
Slide 7: Sector Performance Summary – FY 2021-22
Sector Performance Summary – FY 2021-22 Revenue Walk EBIT Walk (LKR Mn) (LKR Mn) 654 -313 -330 5,705 -196 -31 712 6,783 78,831 8,852 6,061 64,501 FY 21 Healthcare Consumer Mobility Other FY 22 Note: The ‘other segment’ includes the corporate office and remaining Leisure assets COPYRIGHT © 2022 | HEM
Slide 8: Sector Performance Summary – Q4 FY 2021-22
Sector Performance Summary – Q4 FY 2021-22 Revenue Walk EBIT Walk (LKR Mn) (LKR Mn) 2,435 -324 1 21,109 1,800 -4 90 21,000 -111 1,600 236 1,529 2,406 19,000 1,400 1,317 16,591 17,000 1,200 15,000 1,000 13,000 800 11,000 600 9,000 400 7,000 200 5,000 0 Q4 FY 21 Helathcare Consumer Mobility Other Q4 F
Slide 9: Continuing Operation EPS
Continuing Operation EPS EPS Walk (LKR Per Share) 9.00 -0.49 1.21 0.43 8.00 -0.49 7.12 7.00 6.47 6.00 5.00 4.00 3.00 2.00 1.00 0.00 FY 21 Operating Profit Net Finance Cost Income Tax NCI FY 22 COPYRIGHT © 2022 | HEMAS HOLDINGS PLC 9
Slide 10: Capital Employed – FY 2021-22
Capital Employed – FY 2021-22 Sector Efficiency Capital Employed, ROCE, and EBIT by Sector 60% 50% Mobility Consumer Healthcare LKR 964.9 Mn 40% LKR 3,017.2 Mn LKR 3,617.1 Mn 30% 20% Group ROCE – 17.2% ROCE (%) 10% 0% 0 5 10 15 20 25 30 -10% Capital Employed (LKR Bn) -20% Other LKR (1,144.4 Mn) -30%
Slide 11: New Product Launches during the Quarter
New Product Launches during the Quarter Home and Personal Care Learning Segment Pharmaceutical Manufacturing Sri Lanka Expanding the Baby Cheramy Portfolio Morison ‘Glucomile’ Atlas Early Writer Pencil ‘Nil Manel’ Soap and Teen Cologne Cream Innovate A5 Range ‘Head To Toe’ Body wash New Shampoo Vari
Slide 12: Consumer Brands
Consumer Brands Home and personal care – Sri-Lanka Home and personal care – International Learning Segment COPYRIGHT © 2022 | HEMAS HOLDINGS PLC 12
Slide 13: Consumer Brands
Consumer Brands Contribution to Group Sector Performance – Q4 FY 2021-22 Revenue % 39% Key Highlights Revenue (LKR Mn) 41.8% 35% (YoY) 9,698 • Macro economic challenges continued to 9,000 8,262 influence consumer behaviour with Q4FY22 7,327 basket values skewing towards food and 5,827 Q4FY21 6,000 5
Slide 14: 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 a ‘Three-in-One’ face, body , hair product range for men under ‘Gold’ Inclusive Strong roots Parenting Stronger Make a Celebrating & Enabling
Slide 15: Home and Personal Care Sri Lanka: Strong Brand Portfolio
Home and Personal Care Sri Lanka: Strong Brand Portfolio of business where Hemas is 95% among the Top 3 players #1 #1 #1 #2 Presence in all modern In Hair Oil In Beauty Soap In Baby Care In Feminine Care trade chains and outlets of households reached by 98% Hemas brand #2 #2 In Laundry Care In Oral
Slide 16: Our Consumer Health Brands
Our Consumer Health Brands Skincare Baby Care Cold and Flu COPYRIGHT © 2022 | HEMAS HOLDINGS PLC 16
Slide 17: Home and Personal Care – International
Home and Personal Care – International Locally led and localized in Bangladesh Reach in Bangladesh 2 Geographies Bangladesh & West Bengal • All products are exclusively designed for Bangladesh. Rural penetration 19.0% by Hemas • We have a local leadership team with 90% 2 Key categories Health soap c
Slide 18: Home and Personal Care – Sri Lanka and International
Home and Personal Care – Sri Lanka and International Sri Lanka International Revenue (LKR Mn) 33.8% Revenue Revenue (YoY) • Increased market shares in the larger Personal Care space such as baby soap, hair care and toothpaste. 6,000 5,625 5,904 • HPC Bangladesh witnessed double digit revenue 5,102 4
Slide 19: 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
Slide 20: Learning Segment
Learning Segment Revenue 6 Key categories • Atlas continued to gain market share across all key categories including books and colour products Revenue (LKR Mn) over last year. • Relaunch of innovate continued to serve well High Efficiency and productivity 4,073 within the premium books category. 4,2
Slide 21: Healthcare Sector
Healthcare Sector Pharmaceutical Import, Marketing and Distribution Pharmaceutical Manufacturing Hospitals COPYRIGHT © 2022 | HEMAS HOLDINGS PLC 21
Slide 22: Healthcare Sector
Healthcare Sector Contribution to Group Sector Performance – Q4 FY 2021-22 Revenue % 59% Key Highlights Revenue (LKR Mn) 24.0% • Market demand for healthcare services (YoY) 60% 12,427 and continued its momentum. 11,847 12,000 11,477 • Hospitals recorded a robust growth with 10,339 Q4FY22 10,021 impr
Slide 23: 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
Slide 24: Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing
Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing Revenue Revenue (LKR Mn) • The distribution segment witnessed a double-digit growth in revenue owing to steady demand. 19.0% • Manufacturing segment revenue was adversely impacted by the slowdown in (YoY) government buy-
Slide 25: We are the only COVID-Certified Hospital in Sri Lanka
We are the only COVID-Certified Hospital in Sri Lanka Hemas Hospitals Highlights Centers of Excellence: “The first Internationally accredited hospitals chain in Sri Lanka by the Australian • In vitro fertilization unit (IVF) (14 cycles in Council on Healthcare Standards International (ACHSI)” Jan -
Slide 26: We have a widespread Lab Network
We have a widespread Lab Network 50+ Labs & Collection Centers Lab Network Highlights Q4 FY 2021-22 Performance across the Country Centers of Excellence: • Main Lab Services to Hospitals (10 441k+ B2B Labs +4 B2B CCs) Test volumes • Outer Labs services across the country (14 Labs) 655+ • Collection
Slide 27: Hospitals
Hospitals Revenue • Witnessed an average increase in surgical 180+ Beds admission volumes by 10 % over last year. • Focus on non-COVID-19 patients was increased, Revenue (LKR Mn) 61.2% especially Non-Communicable Diseases (NCDs) (YoY) which translated to elective surgeries. 2,000 1,902 59% Hospital
Slide 28: Mobility Sector
Mobility Sector Maritime Aviation COPYRIGHT © 2022 | HEMAS HOLDINGS PLC 28
Slide 29: Mobility Sector
Mobility Sector Contribution to Group Sector Performance – Q4 FY 2021-22 2% Revenue % Key Highlights Revenue (LKR Mn) • Divestment of the logistics arm during the 4% third quarter brought down the overall 1,000 performance of the Sector. 734 44.1% Q4FY22 587 595 (YoY) • Despite the marginal decline
Slide 30: 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” 125,000+ TEUs Emirates Sky Cargo – 1st in the network to Represents the leading Throughput Facilitating over 1000+ feeder operator to the operate mini freight
Slide 31: Group Digital Transformation
A Group Digital Transformation that will Reimagine, Re-organize, Rebuild, Reinvent and Refocus Hemas Digital Outcomes Reorganize Leadership, Organization & Governance Revenue and Value Creation New Ways of Working Skills for the future Customer Digital DNA in our people New digital Predictive data /
Slide 32: Sustainability Performance – Q4 FY 2021-22 vs Q4 FY 2020-21
Sustainability Performance – Q4 FY 2021-22 vs Q4 FY 2020-21 Values of Fines for Non-Compliance Carbon Footprint (per Rs. Mn Revenue) 0.20 MT 13% with Laws and Regulations in the NONE Social Economic Area Water Consumption Total Work-Related Injury Rate (per Rs. Mn Revenue) 2.3 m3 32% (per 100 employ
Slide 33: Environmental Agenda 2030
Environmental Agenda 2030 Responsible Plastic Manufacture Safeguard our Eco System Protect our Natural Resources and Disposal Practices We will embrace and Actively pursue the use of From Design to disposal, natural resources in a we will strive to reduce use champion initiatives that responsible ma
Slide 34: Social and Purpose Led Initiatives
Social and Purpose Led Initiatives Piyawara Eka Se Salakamu Fems Aya Creating a social movement to Early childhood care and empower children and families Improving menstrual development of with Downs Syndrome to live a health of women in Sri underprivileged children dignified life. Lanka across the
Slide 35: Social and Purpose Led Initiatives
Social and Purpose Led Initiatives Sonduru Diriyawanthi Atlas Sip Savi Atlas Sip Udana Providing natural hair wigs Create equal learning to patients undergoing opportunities through Facilitating learning by chemotherapy and children from creating quality educational advocating that women underprivil
Slide 36: Corporate Governance
Corporate Governance BOM Group CEO BOM Consists of the senior leadership team of 9 members - MDs of our 5 major businesses and 4 leaders from Corporate Nomination & Office. Responsible for formulation and implementation of Group strategic plan. The COG, as in a gearbox in a Group Audit Governance ve
Slide 37: 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