Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — Q3 FY2017/18 Earnings Presentation
30 slides from Hemas's earnings presentation, 2018
Slide 1: Hemas Holdings PLC Investor Presentation Q3 FY 2017–2018
Hemas Holdings PLC Investor Presentation Q3 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 (Q3) FY18 Sri Lanka’s leading domestic H&PC Logistics & manufacturer with Maritime Largest private 25% market share Leading maritime 6% Other sector healthcare house representing 5% player with LKR 1
Slide 3: History & Milestones
2011 1970 History & Milestones Launched Bangladesh Launched travel and tourism consumer business partnerships 2017 2007 Expansion of Rx & OTC 1962 Entered the Manufacturing & Production Hospital Sector Logistics Facilities of Personal care with French Multinational firm 2014 2003 1948 Exited Power 2
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 Consumer 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 educatio
Slide 5: FY 2018 Business Highlights: Consumer & Healthcare
FY 2018 Business Highlights: Consumer & Healthcare Premiumisation and deepening our positions in fast Expanding our footprint in Emerging International Personal care growing Personal Care categories markets ▪ Re-launched Kumarika Shampoo & Dandex Shampoo ▪ Refreshed and relaunched Kumarika hair oil
Slide 6: FY 2018 Business Highlights: Leisure and Mobility
FY 2018 Business Highlights: Leisure and Mobility Expanded portfolio of maritime services and deepen offering in domestic logistics and distribution ▪ Launched “Spectra”, our joint venture 3PL brand with GAC Global, commencing operations with a new state-of-the-art container yard in the Muthurajawel
Slide 7: Hemas Consolidates FMCG position by acquiring Atlas
January 2018: Hemas Consolidates FMCG position by acquiring Atlas - Sri Lanka’s most loved brand of 2017 ▪ Hemas acquired 75.1% of Atlas Axillia Company (Private) Limited, Sri Lanka’s leading School and Office brand, for a purchase consideration of Rs.5.7Bn (10x PE and 6X Value Creation: continuing
Slide 8: People and Innovation
People and Innovation Second 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 group a
Slide 9: Sri Lanka Personal Care Market
Sri Lanka Personal Care Market Sri Lanka Home & Personal Care Industry ▪ Economy continues to feel the after-effects of prolonged drought and flood driving Spending and Growth in LKR Bn. inflationary pressure on consumer spending. 2013 – 2017 ▪ Rising inflation impacted consumption severely towards
Slide 10: Our Consumer Business develops products specifically for Sri Lankan needs
Our Consumer Business develops products specifically for Sri Lankan needs No.1 Beauty Soap Market Share No. 1 Hair Oil No. 2 Oral Care Player No. 2 Feminine Hygiene No.1 Baby care brand Player No.2 Washing powder brand Revenue Contribution www.hemas.com 10
Slide 11: 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 12: Consumer Sector Performance & Highlights
Consumer Sector Performance & Highlights Domestic Hemas Consumer Sector Revenues & EBIT in LKR Mn. YTD (Q3) FY14 – YTD (Q3) FY18 ▪ Consumer sector revenues are Rs.12.4Bn, a growth of 1.0% over the previous financial year; operating profits were Rs.1.4Bn, a decline of 18.6% 15,000 2,000 12,289 12,410
Slide 13: Sri Lanka Healthcare Trends
Sri Lanka Healthcare Trends Private Retail Pharmaceutical Market Growth ▪ Healthcare spend driven by growing burden of NCDs, FY14–FY17 underpinned by aging population contributing to increased 25 Cardiovascular disease and Diabetes 20 ▪ % growth Middle class consumers seeking convenience: 50% of 15
Slide 14: 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 30% share ▪ Representation of major Multinational pharmaceuticals and Branded generics manufacturer Rx & OTC Pharmaceutical ▪
Slide 15: Hemas represents the largest global multinational pharmaceutical manufacturers
Hemas represents the largest global multinational pharmaceutical manufacturers 30% Market Share 3000+ Pharmacies Hemas Pharmaceuticals 35+ 9 Principals Therapeutic Categories www.hemas.com 15
Slide 16: 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 (Q3) FY14– YTD (Q3) FY18 brands such as Lacto Calamine and Gripe Mixture. 3,500 600 2,900 2,800 3,000
Slide 17: 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 18: Healthcare Sector Performance & Highlights
Healthcare Sector Performance & Highlights Performance Healthcare Sector Revenues & EBIT in LKR Mn. ▪ Healthcare sector revenues are Rs.16.6Bn, total revenue growth of 19.4%, EBIT YTD (Q3) FY14 – YTD (Q3) FY18 growth of 14.5% 20,000 16,632 2,000 15,000 13,931 1,500 ▪ Key operational challenge of FY
Slide 19: Logistics and Maritime Industry
Logistics and Maritime Industry • Freight rates saw a rise during Q3 • Limited Deep water berths available in Port of Colombo has direct 7%-8% Domestic Logistics impact on Transshipment volume growth • 75% of shipping volumes are transshipments Growth • Port of Colombo to serve as major transshipmen
Slide 20: 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 21: Mobility Sector Performance & Highlights
Mobility Sector Performance & Highlights Mobility Sector Revenues (LKR Bn) & Mobility sector recorded Rs.2.1Bn in revenues; a growth of EBIT (LKR Mn) 52.2%, EBIT growth of 114.6%: YTD (Q3) FY14 – YTD (Q3) FY18 2,500 800 Logistics: 629 2,000 600 ▪ Spectra, our joint venture has grown from increased h
Slide 22: Sri Lanka Tourism Industry
Sri Lanka Tourism Industry ▪ Double-digit tourist arrivals growth down to 3% in 2017; decline in emerging Tourist Arrivals in Millions markets of China, Maldives, Middle East and Russia. 2012–2017 2.05 2.1 ▪ Tourist arrivals in December rose 8.8% year-on-year to an all-time monthly peak, 1.8 1.6 rev
Slide 23: 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 24: Leisure Travel and Aviation Performance & Highlights
Leisure Travel and Aviation Performance & Highlights Performance LTA Sector Revenues & EBIT in LKR Mn ▪ LTA sector revenues are LKR 2.6Bn, a decline of 11.0% over the previous year; Overall YTD (Q3) FY14 – YTD (Q3) FY18 profitability of this segment continued to be below expectations 4,000 600 ▪ Aft
Slide 25: Financial Highlights
Financial Highlights As at 31st December (9 months) 2015/16 (9 months) 2016/17 (9 months) 2017/18 ROE % (annualised) 14.10% 14.03% 10.98% EPS (Rs.) (annualised) 4.55 5.61 4.89 Net Asset Value (Rs.) 35.69 41.51 45.46 Share Price as at December 31(Rs.) 93.00 98.00 126.00 Market Cap in Mn as at Decembe
Slide 26: Year to Date Group Performance
Year to Date Group Performance Group Revenue and % Growth Group Earnings and % Growth FY 2012 – FY 2017 FY 2012 – FY 2017 80.0% 40 40% 35 3 60.0% LKR Billions 30 65.2% 40.0% 25 2 20 26.6% 20% 38.0% 20.0% 27.5% 26.1% 15 19.5% 19.7% 1 0.0% 10 2.4% -20.0% 5 12.9% 11.4% -12.7% 0 0% 0 -21.5% -40.0% FY 20
Slide 27: Strong and stable performance
Strong and stable performance Group Revenue and % Growth Group Earnings and % Growth FY 2012 – FY 2017 FY 2012 – FY 2017 43 60% 45 40% 38 3 40% LKR Billions 40 LKR Billions 42% 45% 35 32 38% 20% 2 32% 30 19.7% 21% 27 19% 20% 27 17% 0% 25 14% 1 22 -4% -20% 20 1% 0 -20% -40% 15 0% FY 2012 FY 2013 FY 2
Slide 28: 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 29: 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 30: 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