Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — Q2 FY2017/18 Earnings Presentation
28 slides from Hemas's earnings presentation, 2017
Slide 1: Hemas Holdings PLC Investor Presentation Q2 FY 2017–2018
Hemas Holdings PLC Investor Presentation Q2 FY 2017–2018 1
Slide 2: Hemas is a LKR 43 Bn Sri Lankan Wellness, Leisure and Mobility Business
Hemas is a LKR 43 Bn Sri Lankan Wellness, Leisure and Mobility Business Group Revenue by Segment YTD (Q2) FY18 Logistics & Largest private Maritime sector healthcare 6% Sri Lanka’s leading Other player with LKR 19 domestic H&PC Leading maritime 6% Bn. in revenues manufacturer with house representing
Slide 3: History & Milestones
2011 1970 History & Milestones Launched Bangladesh Launched travel and tourism consumer business partnerships 2017 2007 Expansion of Rx & OTC 1962 Manufacturing & Production Acquired Southern Hospital Logistics Facilities of Personal care with French Multinational firm 2014 2003 1948 Exited Power IP
Slide 4: Across our businesses we are Enriching Lives and driving towards Market Leadership
Across our businesses we are Enriching Lives and driving towards Market Leadership Developing great Personal Care products and brands that delight Sri Lankan consumers Developing our regional footprint by tapping into high growth emerging markets Elevating our community with a focus on childhood edu
Slide 5: Business Highlights: Wellness
Business Highlights: Wellness Premiumisation and deepening our positions in fast growing PC categories ▪ Re-launched Dandex Shampoo ▪ Introduced Baby Cheramy Floral Cologne glass bottle packs ▪ Introduced Diva detergent economy packs; 200g and 400g packs ▪ Promotion campaigns for Clogard ‘Fight Germ
Slide 6: Business Highlights: Leisure and Mobility
Business Highlights: Leisure and Mobility Expanded portfolio of maritime services and deepen offering in domestic logistics and distribution ▪ Secured our first mainline shipping Principal, Evergreen Shipping Lines– one of the largest callers at the Port of Colombo, a significant scale up for Hemas
Slide 7: People and Innovation
People and Innovation Launched first year of development program in partnership with Indian Institute of Management Bangalore (IIMB), to prepare Hemas Future Leaders Launched a Group-wide Wellness initiative to make Hemas the healthiest workforce in Sri Lanka Trialling a Wellness Platform across the
Slide 8: Sri Lanka Personal Care Market
Sri Lanka Personal Care Market ▪ Economy continues to feel the after-effects of prolonged drought and flood driving inflationary pressure on consumer spending Sri Lanka Home & Personal Care Industry ▪ Modern grocery retail sector continues its mid-teens growth over the medium term, Spending and Grow
Slide 9: Our Consumer Business develops products specifically for Sri Lankan needs
Our Consumer Business develops products specifically for Sri Lankan needs ▪ 50 year old business and 6 Power Brands, that are household names ▪ Market leader in Baby care, Beauty soap and Hair oil ▪ Relentless focus on delighting the Sri Lankan consumer www.hemas.com 9
Slide 10: Hemas Consumer Bangladesh
Hemas Consumer Bangladesh ▪ Kumarika hair oil has 20% share in the value-added hair oil segment in Bangladesh ▪ 132,000 retailers reached through own distribution ▪ Launched 2 variants of a “Science + Nature” based face wash in 2016 under the Kumarika brand ▪ Introduced the first ever marbleised her
Slide 11: Consumer Sector Performance & Highlights
Consumer Sector Performance & Highlights Domestic Hemas Consumer Sector Revenues & EBIT in LKR Mn. YTD (Q2) FY13 – YTD (Q2) FY18 ▪ Consumer sector revenues are Rs.8.1Bn, a decline of 2.6% over the previous financial 10,000 1,400 8,349 8,132 year; operating profits were Rs.968.7Mn, a decline of 16.4%
Slide 12: Sri Lanka Healthcare Trends
Sri Lanka Healthcare Trends Private Retail Pharmaceutical Market Growth ▪ Growing burden of NCDs, underpinned by aging population FY14–FY17 contributing to increased Cardiovascular disease and 25 Diabetes 20 ▪ % growth Middle class consumers seeking convenience: 50% of 15 patients use private outpat
Slide 13: Hemas Healthcare: Leadership in Pharmaceutical Distribution, Manufacturing and Healthcare Services
Hemas Healthcare: Leadership in Pharmaceutical Distribution, Manufacturing and Healthcare Services ▪ Market leader in private retail pharmaceutical distribution services with 22.6% share ▪ Representation of major Multinational pharmaceuticals and Branded generics manufacturer Rx & OTC Pharmaceutical
Slide 14: Hemas represents the largest global multinational pharmaceutical manufacturers
Hemas represents the largest global multinational pharmaceutical manufacturers 22.6% Market Share 3000+ Pharmacies Hemas Pharmaceuticals 35+ 9 Principals Therapeutic Categories www.hemas.com 14
Slide 15: Morison PLC Pharmaceutical Manufacturing
Morison PLC Pharmaceutical Manufacturing ▪ Through Morison PLC, Rx and OTC manufacturing subsidiary Morison PLC Revenues & EBIT in LKR Mn which was acquired in 2013, we own and market household YTD (Q2) FY14– YTD (Q2) FY18 brands such as Lacto Calamine and Gripe Mixture. 2500 300 ▪ Manufactures 70 h
Slide 16: Hemas Hospitals
Hemas Hospitals Hemas Hospital & ▪ Leader in non-urban based hospital and diagnostics services, with a vision of reaching patient Laboratory Network, 2017 populations where they live. ▪ 3 multi-specialty, ACHSI accredited hospitals in the North of Colombo, East of Colombo and in the Southern Provinc
Slide 17: Healthcare Sector Performance & Highlights
Healthcare Sector Performance & Highlights ▪ Healthcare sector revenues are Rs.10.6Bn, total revenue growth of 16.5%, EBIT Healthcare Sector Revenues & EBIT in LKR Mn. growth of 8.0% YTD (Q2) FY13 – YTD (Q2) FY18 15,000 1,500 ▪ Revenue growth driven by good volume growth of Pharma distribution and h
Slide 18: Logistics and Maritime Industry
Logistics and Maritime Industry • Freight rates to continued to see a drop during the past year with declining oil prices • 75% of shipping volumes are transshipments 7%-8% Domestic Logistics • Port of Colombo to serve as major transshipment hub for South- Asia Growth • Trend in low costs carriers e
Slide 19: Maritime Logistics
Through our Mobility arm, we are securing new accounts and growing capacity in logistics, warehousing and haulage Logistics Maritime ▪ Integrated portfolio of container haulage, container operations, ▪ Appointed General Agents for Evergreen, the fourth largest warehousing, and transportation of proj
Slide 20: Mobility Sector Performance & Highlights
Mobility Sector Performance & Highlights Mobility Sector Revenues (LKR Bn) & ▪ Mobility sector recorded Rs.1.3Bn in revenues; growth of 54.0%, EBIT EBIT (LKR Mn) growth of 197.0%, driven by both maritime agencies and increased YTD (Q2) FY13 – YTD (Q2) FY18 demand for logistics services 1500 420 500
Slide 21: Sri Lanka Tourism Industry
Sri Lanka Tourism Industry Tourist Arrivals in Millions ▪ Significantly subdued quarter in a typically slow season for tourism 2012–2017 compounded by travel advisories related to dengue epidemics and 2.05 inclement weather. 1.8 1.7 1.6 1.4 ▪ Double-digit tourist arrivals growth down to 7% during Q1
Slide 22: Leisure, Travel and Aviation Business
Leisure, Travel and Aviation Business ▪ Ownership and operation of hotels through listed subsidiary Serendib Hotels PLC ▪ Joint Venture partnership with the Minor Group to develop Anantara and Avani brands ▪ Inbound Travel joint venture partnership with the Diethelm-Kellar Group HEMAS TRAVELS ▪ Whol
Slide 23: Leisure Travel and Aviation Performance & Highlights
Leisure Travel and Aviation Performance & Highlights ▪ LTA sector revenues are LKR 1.6Bn, a decline of 14.7% over the previous year; Overall profitability of this segment continued to be below expectations. LTA Sector Revenues & EBIT in LKR Mn YTD (Q2) FY13 – YTD (Q2) FY18 ▪ Serendib Hotels reported
Slide 24: Financial Highlights
Financial Highlights As at 30th of September 1H 2015/16 1H 2016/17 1H 2017/18 ROE % (annualised) 11.7% 13.7% 11.2% EPS (Rs.) (annualised) 3.67 5.39 4.96 Net Asset Value (Rs.) 35.55 40.32 44.64 Share Price as at September 30 (Rs.) 85.0 104.1 119.0 Market Cap in Mn as at September 30 (Rs.) 48,666Mn 59
Slide 25: Group Performance
Group Performance Group Revenue and % Growth Group Earnings and % Growth FY 2012 – FY 2017 FY 2012 – FY 2017 60% 45 40% 3 40% LKR Billions 40 LKR Billions 35 2 20% 30 20% 0% 25 1 -20% 20 15 0% 0 -40% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Grou
Slide 26: Abhimana
Abhimana ▪ Abhimana is our ethos of sustainability that describes our vision of a sustainable and co-operative society, of people living and working together ▪ Inline with this, we have released our Sustainability Report providing insight into the Group’s sustainability philosophy and initiatives in
Slide 27: AYATI
AYATI ▪ First National Centre for Children with Disabilities to be constructed at the Faculty of Medicine of the University of Kelaniya in Ragama ▪ Hemas being the largest private sector healthcare Company in Sri Lanka took initiative to address a major gap in the national healthcare system by launc
Slide 28: Hemas Investor Relations
Hemas Investor Relations: Telephone: +94 11 4 731 731 (Ext. 1278) Email: ir@hemas.com Web: http://www.hemas.com Hemas Holdings PLC Hemas House, 75, Braybrooke Place, Colombo 2, Sri Lanka CONFIDENTIALITY AGREEMENT: Any confidential information discussed in this presentation shall be used by the recei