Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — Investor Presentation (June 2011)
44 slides from Hemas's investor presentation, June 2011
Slide 1: Investor Presentation June 2011
Investor Presentation June 2011 HEAAAS www.hemas.com Enriching Lives
Slide 2: Contents
Contents • Country Overview : Key Statistics • Hemas Group: A Snap Shot • Our Businesses • FMCG • Healthcare • Transportation • Leisure • Power • CSR – Hemas Outreach Foundation 2
Slide 3: Sri Lanka: Key Statistics
Sri Lanka: Key Statistics Nominal GDP USD 51Bn (2010) GDP per Capita USD 2,399 (2010) Real GDP Growth 8.0% (2010) Inflation 9.8% (April 11, CCPI Y-Y change) Interest Rate 7.3 % (12-month T-bill) Exchange Rate LKR 110/USD 3 Source: CBSL, Country Report - Sri Lanka, Economist Intelligence Unit, Global
Slide 4: Post War: A new era of opportunity
Post War: A new era of opportunity • Political stability post elections • Economy expected to expand ~ 6.6% a year over the next 5 years • Improved investor confidence: stock market performance in 2010 ~104% (2009 ~ 125% ) • Tourism potential: 46% growth in arrivals for 2010 4 Source: CBSL, Country
Slide 5: Hemas Group
4, HEA\AS Enriching Lives HEMAS GROUP
Slide 6: Hemas: Key Statistics
Hemas : Key Statistics Share Price Rs 47.50 Market Capitalization Rs 24.3Bn % of Total Market 0.94% PER 20.1 times PBV 2.7 times No of Shares 512Mn Public Shareholding 28.05% Rs Mn. 10/11 09/10 Change Group Turnover 18,067 14,997 20.5% Group Earnings 1,210 902 34.2% Shareholders’ Funds 8,874 7,692 1
Slide 7: The Hemas Group
The Hemas Group Hemas Holdings PLC Hemas Power FMCG Healthcare Leisure Transportation Other PLC (75%) Serendib Heladhanavi IT Network Pharma Hotels PLC GSAs (47%) Solutions (51%) Hospitals Diethelm Travels Hydro Power Property (70%) Travels (80%) Maritime BPO Freight & Logistics (49%) 7
Slide 8: Our Portfolio - FY10/11
Our Portfolio - FY10/11 Earnings Turnover 0% 4% 3% 16% 19% 32% 38% 23% 6% Capital Employed 4% 36% 19% 9% 18% 5% 30% 27% 10% FMCG HEALTHCARE LEISURE POWER TRANSPORTATION OTHER 8
Slide 9: Group Revenue: 5-Year CAGR ~ 13.1%
Group Revenue: 5-Year CAGR ~ 13.1% Rs. Mn. 20,000 25% 20% 20% 18,000 20% 20% 16,000 14,000 15% 12,000 10,000 10% 7% 8,000 5% 6,000 4,000 0% 2,000 -1% - -5% 2007 2008 2009 2010 2011 Top line Growth 9
Slide 10: Growth in EPS Expected to Rebound
Growth in EPS Expected to Rebound Rs. 2.50 34% 40% 30% 2.00 17% 20% 12% 1.50 10% 4% 0% 1.00 -10% -20% 0.50 -32% -30% - -40% 2007 2008 2009 2010 2011 EPS Growth Comparative figures adjusted for sub division of ordinary shares in the proportion of 5:1 10
Slide 11: ROE: Showing signs of improvement
ROE: Showing signs of improvement Rs. Mn. 10,000 25% 9,000 21.0% 19.4% 8,000 20% 7,000 6,000 14.6% 15% 11.5% 5,000 12.3% 4,000 10% 3,000 2,000 5% 1,000 - 0% 2007 2008 2009 2010 2011 Shareholders' funds ROE 11
Slide 12: Cash flows Vs Earnings
Cash flows Vs Earnings Rs. Mn. 2,500 2,000 1,500 1,000 500 - 2007 2008 2009 2010 2011 Operating Cashflow Earnings 12
Slide 13: Governance
Governance • Board of Directors: – Four independent non- executive directors (including Chairman), one non-executive director, three executive directors • Board sub committees: – Audit committee – Two independent non- executive directors – Remuneration committee - Two independent non- executive dire
Slide 14: FMCG: Overview
FMCG: Overview FMCG Market ~ 141Bn • Hemas, No.2 in Personal Care 11% category Food & Beverages 15% • Portfolio includes 18 popular brands Personal Care Homecare • Market Leader in baby care, hair oil 74% and men’s grooming categories • Modern state-of-the-art production Hemas factory with R&D facil
Slide 15: FMCG: Key Brands
FMCG: Key Brands Baby Cheramy • Market leader in the baby care category Diva Clogard • A leading washing powder in the market • Clear USP - Clove oil Kumarika • Market leader in the hair oil Velvet market • Toilet soap, re-launched in • 4th largest revenue generator in December 09 the sector 15
Slide 16: FMCG: 10-11 update
FMCG: 10-11 update Turnover Key Statistics 2010/11 2009/10 Growth 32% Turnover (Rs. Mn) 5799 5247 11% Profit After Tax (Rs. Mn) 519 636 (18%) Sector Group • Baby care, Fragrances, Homecare and Personal wash contributed positively to growth in turnover • New taxes levied on imports and increasing raw
Slide 17: FMCG: Accolades for our manufacturing facility
FMCG: Accolades for our manufacturing facility • Gold award for the Extra Large Category at the CNCI ‘Achievers of Industrial Excellence’ Awards 2010 • GOLD Award at the ‘National Productivity Award 2009/10’ presented by the National Productivity Secretariat 17
Slide 18: FMCG: Strategic Focus
FMCG: Strategic Focus • Consolidation of Personal care brands • Strengthen Household and Feminine Hygiene categories • Expand with selected categories in Bangladesh market • Explore opportunities to expand the Foods portfolio 18
Slide 19: Healthcare: Overview of the Pharmaceutical business
Healthcare: Overview of the Pharmaceutical business Total Market • Core business: distribution of pharmaceutical products • Market leader with a share of 30% 16.4% (source: IMS) • Represents 25 multinational 60% Total Market pharmaceutical companies 10% • Widest and strongest distribution network 30
Slide 20: Healthcare: Overview of Hospitals
Healthcare: Overview of Hospitals Inpatient split between Out Patient split between Govt. and Private Govt. and Private Hospitals • 100-bed hospital in Wattala and a 50-bed Hospitals hospital in Galle 13% 40% • Operations of Wattala commenced in 87% 60% December 2008 and Galle in March 2009 • Dedica
Slide 21: Healthcare: Our Hospitals at Wattala & Galle
Healthcare: Our Hospitals at Wattala & Galle Wattala • 100-bed state-of-the-art hospital with 10-bed ICU & NICU • Approximately 130 consultants practice on a visiting basis • Modern facilities including 20 consultation chambers and 5 operating theaters • Fixed priced health packages to ensure afford
Slide 22: Healthcare: 10-11 update
Healthcare: 10-11 update Turnover Key Statistics 2010/11 2009/10 Growth 36% Turnover (Rs. Mn) 6514 5049 29% Profit After Tax (Rs. Mn) 232 68 239% Sector Group • Hospital sector showed a Turnover growth of 45% for the year • Wattala Hospital achieved cash break-even position in May 2010, 18 months af
Slide 23: Healthcare: Hospital laboratory expands to open in Ragama
Healthcare: Hospital laboratory expands to open in Ragama • The new lab is equipped with automated biochemistry and hematology analyzers, providing speedy and accurate laboratory test reports round the clock • Lab records 110 blood tests per day • The lab also provides ECG service, Channeling & info
Slide 24: Healthcare: Hospital Expansion Plan
Healthcare: Hospital Expansion Plan • Two 50 bed hospitals in Battaramulla and Ratmalana Battaramulla • Approximate date for commencement of construction - May 2011 (1st Hospital in Battaramulla) Colombo • Period of construction estimated at 12 South months • Commercial operations expected to start
Slide 25: Healthcare: Strategic Focus
Healthcare: Strategic Focus • Expansion plans for OTC business • Looking to attract new agencies and consolidate market position in the Pharmaceutical market • Stabilize operations in existing hospitals and expand into identified key locations & sites 25
Slide 26: Transportation: Overview
Transportation: Overview • Sector operates in the Aviation, Maritime and integrated logistics space • Market leader in aviation, representing two of the largest airlines, Emirates (EK) and Malaysia Airlines (MAS) • Maritime arm represents a Singaporean feeder agency, Far Shipping • Entered the asset
Slide 27: Transportation: 10-11 Update
Transportation: 10-11 Update Turnover 4% Key Statistics 2010/11 2009/10 Growth Turnover (Rs. Mn) 734 664 11% Profit After Tax (Rs. Mn) 224 181 24% Sector Group • Growth in passenger sales drives sector performance during the year • GSA passenger and cargo sales have shown a growth of 38% and 21% res
Slide 28: Transportation: Strategic Focus
Transportation: Strategic Focus • Consolidate the market leadership position in the Aviation business • Look out for opportunities in the local aviation industry • Opportunities to expand the Maritime and Ports related business 28
Slide 29: Leisure: Overview
Leisure: Overview • Hemas owns 51% stake in Serendib Hotels, a public listed hotels group • Serendib Group consists 3 hotels located in Bentota, Negombo, Sigiriya, and manages and owns 19.9% of a fourth hotel in Kalutara with a room strength of 105 • Hemas owns 2 undeveloped properties in Kandy and
Slide 30: Leisure: Market Statistics of Serendib Hotels
Leisure: Market Statistics of Serendib Hotels Voting Non Voting Share Price Rs 30.80 Rs 18.70 Market Capitalization Rs 1.9Bn Rs 0.5Bn % of Total Market 0.07% 0.02% PER 16.0times 4.6times PBV 1.5times 0.5times No of Shares 60.4Mn 28.8Mn Public Shareholding 29.66% 26.64% 30
Slide 31: Leisure: 10-11 Update
Leisure: 10-11 Update Turnover 6% Key Statistics 2010/11 2009/10 Growth Turnover (Rs. Mn) 1035 752 38% Profit After Tax (Rs. Mn) 122 33 263% Sector Group • Our hotels continued to benefit from the positive outlook of the country • Hotels recorded an average occupancy in excess 80%, for the year unde
Slide 32: Leisure: Dolphin Hotel upgraded to 4 star
Leisure: Dolphin Hotel upgraded to 4 star • Reopened in October 2010 • Refurbishment cost - Rs. 530Mn 32
Slide 33: Leisure: Twin Experience of PLAY & PAUSE at Dolphin
Leisure : Twin Experience of PLAY & PAUSE at Dolphin . . . 33
Slide 34: Leisure: Acquisition of Kani Lanka
Leisure: Acquisition of Kani Lanka • A 150 key luxury hotel is being developed adjacent to the current hotel and will be the first – ever ‘Anantara‘ branded resort in Sri Lanka • Hemas acquired a 19.9% stake in Kani Lanka Resort and Spa, through its subsidiary Serendib Hotels PLC • Minor Internation
Slide 35: Leisure: Strategic Focus
Leisure: Strategic Focus • Refurbishment and repositioning of Hotel Serendib - construction to begin in May 2011 • Development of existing land banks, Peace Haven and Mowbray • Strategic investments with Minor to develop the Anantara brand 35
Slide 36: Power: Overview
Power: Overview • 100MW thermal power plant: a joint venture with a 10 year PPA expiring in 2014 • Hydro power plants with operational capacities of 2.0MW and 2.6MW • 2.4MW hydro power plant under construction • Hemas Power was listed in Sep 09, and Energy Demand Vs Generation Requirement raised Rs.
Slide 37: Power: Key Statistics
Power: Key Statistics Share Price Rs 35.80 Market Capitalization Rs 4.5Bn % of Total Market 0.17 % PER 10.9 times PBV 1.3 times No of Shares 125Mn Public Shareholding 24.93% 10/11 09/10 Growth Group Turnover Rs 3.4Bn Rs 2.9Bn 19% Group Earnings Rs 426Mn Rs 244Mn 75% Shareholders’ Funds Rs 2.9Bn Rs 2
Slide 38: Power: 10-11 Update
Power: 10-11 Update Turnover Key Statistics 2010/11 2009/10 Growth 19% Turnover (Rs. Mn) 3,412 2,867 19% Profit After Tax (Rs. Mn) 426 244 75% Sector Group • Heladhanavi continues to be the largest contributor to group profits • Hydro power contribution to sector profits grow to 45% in comparison to
Slide 39: Power: Strategic Focus
Power: Strategic Focus • Development of on-going mini-hydro projects • Looking to enter non-conventional renewable energy space – Bio mass & wind energy • Explore overseas investments opportunities 39
Slide 40: CSR: Hemas Outreach Foundation
CSR: Hemas Outreach Foundation 40
Slide 41: CSR: Our Objectives
CSR: Our Objectives 1. Focus on Early Childhood Care and Development (ECCD) of young children through pre- schools 2. Training of pre-school teachers 3. Empower community led social development through island wide parental awareness programs 4. Improve children’s recreational facilities in disadvant
Slide 42: CSR: Our activities this year
CSR: Our activities this year . . . • 33 Piyawara model pre-schools are being monitored and sustained by Hemas Outreach Foundation • Opened first ever model pre-school in the Northern Region in Jaffna in January 2011 • Set up pre-schools and play areas in post war relief villages in Vavuniya • Set u
Slide 43: In conclusion
In conclusion . . . • All sectors in the Group are well placed to benefit from expected economic growth • Growth of the middle class segment to drive growth in FMCG and Healthcare industries • Major investments in the medium term to be in Hospitals, Hotels and Power • Exploring opportunities to ente
Slide 44: Investor Relations Contact
Investor Relations Contact: Malinga Arsakularatne Chief Financial Officer +94 11 4731728 / +94 77 2233642 malinga@hemas.com CONFIDENTIALITY AGREEMENT: Any confidentiality information disclosed in this presentation shall be used by the receiving party exclusively for the purposes of fulfilling the re