John Keells Holdings PLC · CSELK:JKH.N0000
John Keells — Q1 FY2024 Earnings Presentation
30 slides from John Keells's earnings presentation, August 2023
Slide 1: JKH Investor Presentation
JKH Investor Presentation Review of Q1 2023/24 Version 3.0
Slide 2: EBITDA: For the quarter ended 30 June
EBITDA: For the quarter ended 30 June EBITDA* Q1 FY2024 Q1 FY2023 Variance Variance (%) (Rs. Million) Transportation 2,419 4,551 (2,133) (47) Consumer Foods 720 1,233 (514) (42) Retail 1,987 2,319 (332) (14) Leisure 284 1,869 (1,586) (85) Property 187 (140) 327 234 Financial Services 1,693 877 816 9
Slide 3: Annual recurring EBITDA displays growth momentum
Annual recurring EBITDA displays growth momentum Recurring EBITDA* 2022/23 2021/22 2020/21 2019/20 (Rs. Million) Transportation 11,963 6,141 3,610 4,375 Consumer Foods 3,184 3,485 3,318 3,366 Retail 8,779 7,549 5,523 5,108 Leisure 8,604 3,785 (3,588) 2,306 Property (265) 7,867 (17) 641 Financial Ser
Slide 4: Quarterly EBITDA movement
Quarterly EBITDA movement EBITDA 2022/23 2023/24 (Rs. Million) Q1 Q2 Q3 Q4 Q1 Transportation 4,551 3,035 1,499 1,546 2,419 Consumer Foods 1,233 1,009 402 651 720 Retail 2,319 1,963 2,320 2,230 1,987 Leisure 1,869 1,005 1,898 3,787 284 Property (140) (279) (312) 516 187 Financial Services 877 1,104 2
Slide 5: Finance Costs: For the quarter ended 30 June
Finance Costs: For the quarter ended 30 June Finance Costs Q1 FY2024 Q1 FY2023 Variance Variance (%) (Rs. Million) Transportation 190 115 75 66 Consumer Foods 249 91 158 173 Retail 971 653 318 49 Leisure 843 615 228 37 Property 31 175 (144) (82) Financial Services 0 277 (277) (100) Other, incl. IT a
Slide 6: Analysis of finance costs
Analysis of finance costs Finance Costs Q1 FY2024 Q4 FY2023 Q1 FY2023 (Rs. Million) Transportation 190 178 115 Consumer Foods 249 332 91 Retail 971 1,082 653 Leisure 843 864 615 Property 31 25 175 Financial Services 0 0 277 Other, incl. IT and Plantation Services 3,061 2,954 1,319 Group 5,345 5,435
Slide 7: PBT: For the quarter ended 30 June
PBT: For the quarter ended 30 June PBT Q1 FY2024 Q1 FY2023 Variance Variance (%) (Rs. Million) Transportation 2,032 4,446 (2,414) (54) Consumer Foods 152 812 (660) (81) Retail 413 (362) 775 214 Leisure (1,655) (73) (1,582) (2,168) Property 330 (2,341) 2,671 114 Financial Services 1,692 860 832 97 Ot
Slide 8: Key financial indicators
Key financial indicators (Rs. Million) Q1 FY2024 31 March 2023 Group debt* excl. leases and incl. convertible debenture 227,759 229,749 Group debt excl. leases and convertible debenture 208,635 211,369 Cash and cash equivalents 96,760 100,340 Net debt excl. leases and convertible debenture 111,875 1
Slide 9: Overview of ESG initiatives
Overview of ESG initiatives • The Group’s carbon footprint per million rupees of revenue increased by 12% to 0.42 MT. • The Group’s water withdrawal per million rupees of revenue increased by 16% to 7.42 cubic meters. • Initiatives under “ONE JKH”, the Diversity, Equity, and Inclusion (DE&I) brand o
Slide 10: Transportation: Port of Colombo
Transportation: Port of Colombo Capacity Enhancements Port of Colombo Volumes 900 805 808 781 780 770 800 700 TEU'S 000 585 600 485 500 439 431 440 400 439 440 446 416 408 300 Q1 Q2 Q3 Q4 Q1 2022/23 2023/24 SAGT SLPA CICT *SLPA includes volumes of JCT and ECT terminals 10
Slide 11: WCT-1: Construction progress
WCT-1: Construction progress ECT CICT WCT-1 November 2022 June 2023 The groundwork on the West Container Terminal (WCT-1) at the Port of Colombo is progressing well with the entirety of the dredging works for both phases completed in May 2023. The construction of the quay wall has been awarded and p
Slide 12: WCT-1: Construction progress
WCT-1: Construction progress 12
Slide 13: Transportation: Q1 2023/24
Transportation: Q1 2023/24 Port Business (South Asia Gateway Terminal) Q1 Earnings Update: Volumes 2022/23 2023/24 Q1 Q1 (TEUs) Q1 Q2 Q3 Q4 Q1 (Rs. mn) 2023/24 2022/23 SAGT 439,310 439,605 416,381 408,261 445,515 EBITDA 2,419 4,551 Domestic: ▪ Given the dollar denominated revenue Transshipment 13:87
Slide 14: Consumer Foods: Q1 2023/24
Consumer Foods: Q1 2023/24 Q1 Earnings Update: Key performance FY2023 FY2024 Q1 Q1 indicators (%) (Rs. mn) Q1 Q2 Q3 Q4 Q1 2023/24 2022/23 Volume growth: EBITDA 720 1,233 Frozen Confectionery 31 6 (19) (30) (10) ▪ The Beverages business recorded a Beverages (CSD) 56 13 (19) (40) (3) growth in EBITDA
Slide 15: Cost of sales analysis of the Beverages business
Cost of sales analysis of the Beverages business Cost of sales composition – Indexed price of raw materials Q1 FY2024 vs Q1 FY2023 Index: Q1 FY20 = 100 350 68% 67% 300 250 200 21% 29% 31% 150 100 50 3% 2% 0 Raw materials and Energy costs Others Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 pack
Slide 16: Cost of sales analysis of the Frozen Confectionery business
Cost of sales analysis of the Frozen Confectionery business Cost of sales composition – Indexed price of raw materials Q1 FY2024 vs Q1 FY2023 Index: Q1 FY20 = 100 78% 81% 600 500 400 44% 300 31% 200 16% 16% 100 6% 3% 0 Raw materials and Energy costs Others Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 17: Retail: Q1 2023/24
Retail: Q1 2023/24 Supermarket business: Q1 Earnings Update: Key performance 2022/23 2023/24 Q1 Q1 (Rs. mn) indicators (%) Q1 Q2 Q3 Q4 Q1 2023/24 2022/23 Same store sales EBITDA 1,987 2,319 54.2 73.7 40.6 30.1 22.8 growth ▪ The Supermarket business recorded a Same store footfall strong performance i
Slide 18: Retail: Q1 2023/24: vs Q1 2022/23
Retail: Q1 2023/24: vs Q1 2022/23 Same Store Same Store ABV Sales Footfall 7.0% 22.8% 14.8% Q1 2022/23: Q1 2022/23: Q1 2022/23: ▪ Inflationary pressures stemming ▪ Customer Count was maintained despite ▪ June 2022 NCPI (YoY) – 58.9%. from the domestic macroeconomic the fuel crisis. ▪ Weight of Purch
Slide 19: Tourist arrivals to Sri Lanka: recovery trend post-pandemic
Tourist arrivals to Sri Lanka: recovery trend post-pandemic 300 Sri Lanka - Monthly Tourist Arrivals Month 2019 2020 2021 2022 2023 250 Jan 244,239 228,434 1,682 82,327 102,545 Feb 252,033 207,507 3,366 96,507 107,639 200 Mar 244,328 71,370 4,581 106,500 125,495 Arrivals ('000) Apr 166,975 - 4,168 6
Slide 20: Tourist arrivals to the Maldives: recovery trend post-pandemic
Tourist arrivals to the Maldives: recovery trend post-pandemic 200 The Maldives - Monthly Tourist Arrivals 180 Month 2019 2020 2021 2022 2023 160 Jan 151,552 173,347 92,103 131,764 172,499 Feb 168,583 149,785 96,882 149,008 177,914 140 Mar 162,843 59,630 109,585 150,739 173,514 120 Apr 163,114 13 91
Slide 21: JKH Group: Leisure occupancies
JKH Group: Leisure occupancies 100% Peak of social unrest 90% in Sri Lanka 80% 70% 60% 50% 40% 30% 20% 10% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 Colombo Hotels Sri Lan
Slide 22: Leisure: Q1 2023/24
Leisure: Q1 2023/24 Q1 Earnings Update: 2022/23 2023/24 Key indicators Q1 Q1 Q1 Q2 Q3 Q4 Q1 (Rs. mn) 2023/24 2022/23 Colombo Hotels* EBITDA 284 1,869 Occupancy (%) 33 29 43 62 49 ▪ Occupancies of the Sri Lankan Leisure ARR (USD) 68 62 65 63 70 businesses recorded an improvement in EBITDA Margin (%)
Slide 23: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort Initial sketch by Sri Lankan-British Architect, Cecil Balmond The 3D rendering of “Cinnamon Life” “Cinnamon Life” under construction 23
Slide 24: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort Rendering of “Cinnamon Life” Actual construction progress of “Cinnamon Life” 24
Slide 25: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort Cinnamon Life – Gaming The discussions with leading international gaming operators are progressing well, where the commercial structures and arrangements are being negotiated, with a final agreement expected shortly. A substantial amount of work has been carried out,
Slide 26: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort Conferencing capacity (~5,000 pax) in five venues and car park facility (2,330 slots) 800 guest room hotel, including conferencing, banqueting, 7 speciality restaurants (~1,300 pax) and entertainment facilities The hotel and conferencing space collectively entails: -
Slide 27: 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 28: Property: Q1 2023/24
Property: Q1 2023/24 Cumulative sales update as at 30 June 2023: Q1 Earnings Update: Number of units Number of Q1 Q1 sold remaining units (Rs. mn) 2023/24 2022/23 Cinnamon Life: EBITDA 187 (140) The Residence at Cinnamon Life 151 80 ▪ EBITDA includes profit recognition The Suites at Cinnamon Life 11
Slide 29: Financial Services: Q1 2023/24
Financial Services: Q1 2023/24 Union Assurance PLC: Q1 Earnings Update: Q1 Q2 Q3 Q4 Q1 Key performance FY2023 FY2023 FY2023 FY2023 FY2024 Q1 Q1 (Rs. mn) indicators (%) (Apr-Jun (Jul-Sep (Oct-Dec (Jan-Mar (Apr-Jun 2023/24 2022/23 2022) 2022) 2022) 2023) 2023) EBITDA 1,693 877 GWP growth 13 3 3 5 21 ▪
Slide 30: 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 Q1 2023/24 and does not constitute an issue prospectus or a financial analysis. This Investor Presentatio
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