Hemas Holdings Ltd. · CSELK:HHL.N0000

Hemas — Q4 FY23 Earnings Presentation

43 slides from Hemas's earnings presentation, 2023

  1. Slide 1: Hemas Holdings PLC Investor Presentation – Q4 FY23

    Hemas Holdings PLC Investor Presentation – Q4 FY23 1

  2. Slide 2: Who We Are

    WHO WE ARE Key Milestones 1948 “Established Hemas Drugs Pvt Ltd” “IPO on the Colombo Stock 2003 Exchange” Established in 1948, Hemas Holdings is one of Sri Lankan’s leading conglomerate with focused interest in Consumer and 2007 “Extended operations into Healthcare. Hospital Space” Listed in the Col

  3. Slide 3: Implications of Key Macro Economic Parameters on HHL

    IMPLICATIONS OF KEY MACRO ECONOMIC PARAMETERS ON HHL Surge In Inflation Depreciation of LKR Global Commodity prices “Change in consumer buying “Input cost inflation with increased “Prices of key commodities declined patterns with reduced disposable cost on imported raw materials and towards the seco

  4. Slide 4: Key Strengths

    BOM Group CEO Nomination & Governance Committee Human Related Party Resources & Transactions Board Remuneration Review Committee Committee Investment Group Audit Committee Committee Diversified and competent Leadership Team Presence in key defensive segments Sound Corporate Governance Healthcare and

  5. Slide 5: Corporate Governance

    Corporate Governance BOM Group CEO Nomination & BOM (Board of Management) Governance Consists of the senior leadership team of 10 members - Heads of our 5 major businesses and 4 leaders from Committee Corporate Office. BOM is responsible for formulation and implementation of Group strategic plan and

  6. Slide 6: Strategic Building Blocks

    STRATEGIC BUILDING BLOCKS Building more from New within the core New business and Efficiencies the core and Adjacencies Internationalisation Accelerate current Capturing new revenue Explore attractive Efficiency and business efforts to drive streams to further opportunities in new productivity to fu

  7. Slide 7: New Product Launches during the Quarter

    New Product Launches during the Quarter Home and Personal Care Sri Lanka Pharmaceutical Manufacturing ‘Prasara’ Ayurveda product range’ “Total ayurvedic personal ‘Vivya’ Under Eye Gel , Face care range that promotes Scrub and the 50 ml face wash ‘FoliMor’ 1mg (Folic Acid 1mg 30s blister) optimal hea

  8. Slide 8: Financial Snapshot

    FINANCIAL SNAPSHOT EBIT BY SEGMENT (LKR MN) 3,004 3,235 1,529 211 233 12M CONTRIBUTION TO GROUP 1,317 42% 1% 830 57% 1,785 13% 2,171 43% Revenue 251 255 54% 831 228 EBIT 741 121 1,271 886 930 657 650 Consumer Healthcare Mobility (54) (176) (329) (439) (308) Healthcare Consumer Mobility Other Full Ye

  9. Slide 9: Sector Performance Summary – FY 2022-23

    Sector Performance Summary – FY 2022-23 Revenue Walk EBIT Walk (LKR Mn) (LKR Mn) 1,146 69 10,963 16,834 -313 10 113,940 112 18,578 2,853 78,831 6,783 FY 22 Healthcare Consumer Mobility Other FY 23 FY 22 Consumer Healthcare Mobility Other FY 23 Note: The ‘other segment’ includes the corporate office

  10. Slide 10: Sector Performance Summary – Q4 FY 2022-23

    Sector Performance Summary – Q4 FY 2022-23 Revenue Walk EBIT Walk (LKR Mn) (LKR Mn) 4,285 7 -65 32,209 45 3,004 132 -40 6,873 1,339 21,109 1,529 Q4 FY 22 Consumer Healthcare Other Mobility Q4 FY 23 Q4 FY 22 Consumer Other Healthcare Mobility Q4 FY 23 Note: The ‘other segment’ includes the corporate

  11. Slide 11: Continuing Operation EPS – FY 2022-23

    Continuing Operation EPS – FY 2022-23 EPS Walk (LKR Per Share) 7.02 -0.36 -1.48 1.72 -0.32 -0.34 -5.14 -1.03 -0.22 7.16 -1.26 -0.77 7.12 7.12 -4.37 7.16 FY 22 Operating NCI Income Tax Net Finance FY 23 FY 22 Consumer Others Mobility Healthcare FY 23 Profit Cost Impact due to profit increase Impact d

  12. Slide 12: Capital Employed – FY 2022-23

    Capital Employed– FY 2022-23 Sector Efficiency Capital Employed, ROCE, and EBIT by Sector 80% Mobility LKR 1,377.1 Mn 62.5% Consumer 60% LKR 5,870.6 Mn Healthcare 40% Group ROCE :22.9% LKR 4,747.7 Mn 36.8% 54.4 % ROCE (%) 20% 17.5% 0% 0 5 10 15 20 25 30 35 40 45 -16.9% Capital Employed (LKR Bn) -20%

  13. Slide 13: Consumer Brands

    Consumer Brands Home and personal care - Sri-Lanka Consumer Brands - International Learning Segment 13 COPYRIGHT © 2023 | HEMAS HOLDINGS PLC

  14. Slide 14: Consumer Brands

    Consumer Brands Contribution to Group Sector Performance – FY 2022-23 Revenue % 47% Key Highlights Revenue (LKR Mn) 83.2% (YoY) 39% • Despite the market witnessing price 15,135 reductions under reduced commodity 15,000 13,628 prices, consumers continued to curtail Q4 FY23 12,000 10,119 consumption a

  15. Slide 15: 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 the “ Prasara” Ayurvedic Range Inclusive Strong roots Parenting Stronger Make a Celebrating & Enabling Both parents together Positive Differe

  16. Slide 16: Home and Personal Care Sri Lanka: Strong Brand Portfolio

    Home and Personal Care Sri Lanka: Strong Brand Portfolio of business - Hemas is 95% among the Top 3 players #1 #2 #1 #2 In Hair Oil In Beauty Soap In Baby Care In Feminine Care Presence in all modern trade chains and outlets of households 98% reached by Hemas #2 #2 brand In Laundry Care In Oral Care

  17. Slide 17: Our Consumer Health Brands

    Our Consumer Health Brands Skincare Baby Care Cold and Flu 17 COPYRIGHT © 2023 | HEMAS HOLDINGS PLC

  18. Slide 18: Update on Key Strategic Initiatives

    Opportunities in Urbanisation and Premiumisation will UPDATE ON KEY be the platform to drive growth STRATEGIC INITIATIVES Urban Population across peer nations 52% “Premiumisation and expanding into key 2021 2015 39% 35% Emerging Trends in underpenetrated categories will be the 31% the Consumer Space

  19. Slide 19: Update on Key Strategic Initiatives

    UPDATE ON KEY Clean beauty that prioritises natural ingredients are a STRATEGIC INITIATIVES prime aspect in the future of personal care. Percentage of people who look for Global Natural and Organic “Fine blend of Innovation and the products that uses natural ingredients personal care Market ($ Bn) u

  20. Slide 20: Home and Personal Care – International

    Home and Personal Care – International Locally led and localised in Bangladesh Reach in Bangladesh 2 Geographies Bangladesh & West Bengal • All products are exclusively designed for Bangladesh. Rural penetration 19.3% by Hemas • Extensive product portfolio with multiple 2 Key categories VAHO and Hea

  21. Slide 21: Home and Personal Care – Sri Lanka and International

    Home and Personal Care – Sri Lanka and International Sri Lanka International Revenue (LKR Mn) 43.1% Revenue Revenue (YoY) • Despite the challenging macro economic conditions, • Markets continue to contract amidst the 8,830 8,446 volumes marginally recovered in the fourth quarter . inflationary press

  22. Slide 22: 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

  23. Slide 23: Update on Key Strategic Initiatives

    UPDATE ON KEY Explore opportunities to expand geographical reach STRATEGIC INITIATIVES via partnering with global players Middle east Stationery market will grow “Learning Segment : Widening the business at a CAGR of 1.3% to reach $ 321.6 Global Stationery Market ($ Billion) Mn in 2025 scope to expa

  24. Slide 24: Learning Segment

    Learning Segment Revenue 6 Key categories • Shift in the Back-to-school season resulted in significant improvement in revenue during the quarter. Revenue (LKR Mn) >100% • Key categories witnessed market share (YoY) improvements under price stability. High Efficiency and productivity 7,000 6,689 thro

  25. Slide 25: The Growing Economy of Bangladesh

    THE GROWING ECONOMY OF BANGLADESH Promising Macro economic factors to support growth and expansion GDP Growth Forecasts $ 460.8 Bn GDP 2022 FY 2024-25 8.0% FDI friendly tax laws and incentives FY 2023-24 7.8% $ 2,730 Access to labour at attractive prices GDP Per Capita. FY 2022-23 7.2% Strategic Loc

  26. Slide 26: Healthcare Sector

    Healthcare Sector Pharmaceutical Import, Marketing and Distribution Pharmaceutical Manufacturing Hospitals 26 COPYRIGHT © 2022 | HEMAS HOLDINGS PLC

  27. Slide 27: Healthcare Sector

    Healthcare Sector Contribution to Group Sector Performance – FY 2022-23 52% Revenue % Key Highlights Revenue (LKR Mn) 34.5% • The market witnessed shortage in supply (YoY) for medicine and medical equipment 59% 16,523 16,712 15,675 15,757 despite the support of donor nations and 16,000 organisations

  28. Slide 28: 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

  29. Slide 29: Strategic Initiatives: Homagama Factory

    UPDATE ON KEY Opportunities to enter into global supply chain via STRATEGIC INITIATIVES contract manufacturing due to Sri Lanka’s proximity to “Homagama Factory” India and availability of infrastructure and know how Key Export Markets for Sri Lanka “Homagama factory: Annual capacity of 5 Global Phar

  30. Slide 30: Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing

    Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing Revenue • Pharmaceutical Distribution Arm of the Group prioritised the availability of essential medication in the market over profitability. Revenue (LKR Mn) 41.4 % • Morison expanded its Branded Generics portfolio with

  31. Slide 31: Hemas Hospitals Highlights

    The first Internationally accredited hospitals chain in Sri Lanka by the Australian Council on Healthcare Standards International Hemas Hospitals Highlights “The first Internationally accredited hospitals chain in Sri Lanka by the Australian Council on Healthcare Standards International (ACHSI)” Cen

  32. Slide 32: We Have a Widespread Lab Network

    We have a widespread Lab Network 50+ Labs & Collection Centers Lab Network Highlights Q4 FY 2022-23 Performance across the Country Centers of Excellence: • Main Lab Services to Hospitals 253k+ (8 B2B Labs +3 B2B CCs) Test volumes • Outer Labs services across the country (14 Labs) 2k+ • Collection ce

  33. Slide 33: Update on Key Strategic Initiatives

    UPDATE ON KEY Building depth and scale of identified anchor and super STRATEGIC INITIATIVES specialties “Capacity expansion via opportunities for Urology: The prevalence of Chronic Kidney organic and inorganic growth ” Disease is 15.1–22.9% in farming districts. Cardiovascular: Incidence of coronary

  34. Slide 34: Hospitals

    Hospitals Revenue 170+ Beds • Core businesses (excluding COVID-19 related revenue) witnessed a growth of over 30% with Revenue (LKR Mn) increased medical admissions. 3.7% 2,000 1,902 (YoY) 60% Hospital occupancy 1,802 1,832 1,747 Profitability 1,526 • Lower COVID-19 related revenue streams and 1,500

  35. Slide 35: Mobility Sector

    Mobility Sector Maritime Aviation 35 COPYRIGHT © 2023 | HEMAS HOLDINGS PLC

  36. Slide 36: Mobility Sector

    Mobility Sector Contribution to Group Sector Performance – FY 2022-23 1% Revenue % Key Highlights Revenue (LKR Mn) 2% 1,000 • Total throughput and transhipment 15.9% volumes at Port of Colombo declined (YoY) by over 7 % due to slow down in the Q4FY23 444 469 global economy and reduced demand 500 410

  37. Slide 37: 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” Emirates cargo : Average daily 350 k+ TEUs freight capacity of 75 tons. Represents the leading - FY 23 Facilitating over 1000+ Emirates Passenger : feeder ope

  38. Slide 38: Group Environmental Agenda

    GROUP ENVIRONMENTAL AGENDA Hemas will continue to play a leading role in helping sustain and nurture all that is Sri Lankan Addressing Marine Pollution 45,000+ KG To Date Plastic Collection 38 COPYRIGHT © 2023 | HEMAS HOLDINGS PLC

  39. Slide 39: Supporting Our Communities

    SUPPORTING OUR COMMUNITIES Creating an inclusive world by eliminating inequality and creating a social security net Creating an inclusive world and eliminating inequality 150 All Employees 99 62 Women Families for 6 Months Morison Branded Medicine Pre- Schools Tackling acute Free Morison branded Emp

  40. Slide 40: Sustainability Performance – Q4 2022-23 vs Q4 2021-22

    Sustainability Performance – Q4 2022-23 vs Q4 2021-22 Values of Fines for Non-Compliance Carbon Footprint (per Rs. Mn Revenue) 30% 0.14 MT with Laws and Regulations in the NONE Social Economic Area Water Consumption Total Work-Related Injury Rate (per Rs. Mn Revenue) 39% 1.3 m3 (per 100 employee) 35

  41. Slide 41: Focus Areas

    FOCUS AREAS Short -Term Mid – Long Term Grow Market Share Acquisitions/expansion in consumer and healthcare Develop value creating products to cater to the evolving needs of the Grow in the Learning space by customers moving into adjacent spaces Expanding the regional footprint with high focus in Ba

  42. Slide 42: Short Term Outlook and Strategies on Navigating the Economic Crisis

    SHORT TERM OUTLOOK AND STRATEGIES ON NAVIGATING THE ECONOMIC CRISIS • Leverage on the strong relationships with external and internal stakeholders to minimise the possible adverse impact on businesses due to temporary political and economic headwinds. • Implement strategies to maintain optimum level

  43. Slide 43: Thank You!

    THANK YOU! COPYRIGHT © 2023 | HEMAS HOLDINGS PLC

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