Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — FY2018-19 Earnings Presentation
31 slides from Hemas's earnings presentation, Jun 2, 2019
Slide 1: Investor Presentation
Investor Presentation Hemas Holdings PLC FY 2018–2019 June 2, 2019
Slide 2: Hemas Holdings PLC: Our portfolio
Hemas Holdings PLC: Our portfolio Home & Personal care SL Pharma Manufacture Home & Personal care International Pharma Distribution School & Office Supplies He Hospitals er a um lth ns Digital Healthcare ca Co ty re Le ili isu ob Hotels re M Logistics Travel Maritime Aviation Copyright © 2019 Hemas
Slide 3: Market leading positions in Consumer and Healthcare
Hemas Holdings PLC: Market leading positions in Consumer and Healthcare Market Leading H&PC Brands Group Revenue by Segment FY 2018-19 Mobility Other Leisure, Travel, 5% Sri Lanka’s Largest & Aviation 4% Pharma Supplier 8% Presence across the Entire Leisure & Travel Value Chain Healthcare 43% Consum
Slide 4: Hemas Holdings PLC: Our Group
Hemas Holdings PLC: Our Group u Market cap: LKR 44.7 billion (US$ 255 million) u Shareholding structure: Esufally family holds 64.3%, 35.7% public holding. u Governance: • HHL is governed by a 12-member board including 6 Independent Directors who are thought leaders in their respective fields of FMC
Slide 5: HHL Group Performance: Five year summary
HHL Group Performance: Five year summary Group Revenue and % Growth EBIT and EBIT margin (%) FY 2014 – FY 2019 FY 2014 – FY 2019 6 11.0% 12% 10.4% 10.4% 75 40% 8.8% 10% 65 8.5% LKR Billions 28.5% 30% 4 8% LKR Billions 55 19.2% 14.3% 6% 45 20% 5.7 16.9% 14.9% 64 4.8 2 4.0 4.2 4% 35 3.4 50 43 10% 25 3
Slide 6: Hemas Journey: 70 years of serving the nation
Hemas Journey: 70 years of serving the nation Ventured into manufacturing Widened array of Extended into personal care Home & Personal the hospital Sold Power products care (H&PC) brands space Business 1948 1970s 2003 2013 2018 1960s 1980s 2007 2014 Started Extended in to IPO on the Acquired leading
Slide 7: Building strong consumer brands and affordable healthcare solutions
We do this by building strong consumer brands and providing access to a wide range of affordable healthcare solutions… Developing a portfolio of Delivering quality medicines and consumer brands that delight therapies to patients who need them • Consolidate market-leading positions • Exceptional supp
Slide 8: Connecting suppliers with customers, travellers and digital wellness solutions
… And connecting suppliers with their customers, travellers with unique experiences and digital-first driven Wellness solutions Serving the region’s logistics and route-to-market needs • Drive superior mobility solutions to serve the region’s logistics needs • Extend into 3PL and last-mile RTM Conne
Slide 9: Industry Focus: Home & Personal Care Sri Lanka
Industry Focus: Home & Personal Care Sri Lanka—driving branded personal care consumption in emerging categories Household Final Consumption in Constant LKR Mn u Sri Lanka’s household consumption grows at 4%, and 2014–2018 personal care (H&PC) categories are highly 8,000 penetrated. CAGR: 3.9% 6,000
Slide 10: Home & Personal Care—International: Kumarika
Home & Personal Care—International: Taking the herbal beauty equity of Kumarika to select South Asian markets u Rapid growth of personal care consumption in FMCG Sales Growth, Bangladesh emerging middle class, adding nearly 30Mn FY 14 – FY 17 15% consumers through 2030. 10% 13.5% u Seeking functiona
Slide 11: School & Office Supplies: Strong outlook
School & Office Supplies: Strong outlook as education spending deepens in importance to the South Asian householder Monthly Household Education Spend u Education: an investible asset for the Sri Lankan 2010–2016 family: CAGR: 12.5% • 4.5 million school going population, with rapid rise of 2,500 2,06
Slide 12: Healthcare: Rethinking private healthcare and widening access
Healthcare: Rethinking private healthcare and widening access to medicines, wellness products and healthcare services Current spending on health as a % of GDP u Healthcare spend driven by growing burden of NCDs. 2013 – 2017 u Middle class consumers seeking convenience: 50% of patients use private ou
Slide 13: Mobility: Capitalising on Sri Lanka's geo-strategic location
Mobility: Capitalising on Sri Lanka’s excellent geo-strategic location u Port of Colombo saw a YoY growth 13.5% in 2018, Colombo Port’s Throughput (TEU) transshipment volume growth at Colombo port was 2015 – 2017 20%. 8Mn 7.2 u Domestic logistics industry estimated to be 6.0 6.0 USD 100Bn growing an
Slide 14: Leisure: Focussing on experiential leisure with asset-light strategy
Leisure: Focussing on experiential leisure with an asset-light investment strategy u Sri Lanka ranked No.1 travel destination in 2019 by Tourist Arrivals and Occupancy Lonely Planet with tourist arrivals up by 10.7% 2015 – 2018 during the quarter. 4Mn 75% 75% 73% 75% 0.8 u Long haul travellers (Euro
Slide 15: Full Year Overview: FY 2018–2019
Full Year Overview: FY 2018–2019 • Strategic Priorities Update • Group Operational Highlights • Sector Performance Copyright © 2019 Hemas Holdings PLC | www.hemas.com 15
Slide 16: FY 2018–19 Group Update: executing on strategic priorities
FY 2018–19 Group Update: we have been executing on our Strategic priorities and capacity building investments u Integrating Atlas and our new pharmaceutical agency, a leading agency (ranked #2) into the portfolio. u Building our international market presence by ramping up operations in West Bengal,
Slide 17: FY 2018–19 Operations Summary
FY 2018–19 Operations Summary: Discontinuous growth from acquisitions, and modest margin improvement in a weak macro environment Sector Revenue & EBIT Margin (%) • Good growth in revenue resulting from accelerated contribution FY 17 – FY 19 (>95%) by Consumer and Healthcare segments. Atlas acquisiti
Slide 18: FY 2018–19 Sector Highlights
FY 2018–19 Sector Highlights Rev % EBIT % u H&PC (>60% contribution) underlying growth of 6% drive by price and product mix. Consumer u +17% growth in H&PC international as Bangladesh improved and West Bengal also (LKR Bn) Growth (LKR Bn) Growth pulled through. 25.6 55.0% 2.7 91.1% u Atlas YoY growt
Slide 19: Most Recent Quarter Performance: Q4, FY 2018–2019
Most Recent Quarter Performance: Q4, FY 2018–2019 • Group Operational Highlights • Quarterly Sector Update — Consumer – Domestic — Consumer – International — Healthcare — Mobility — Leisure, Travel and Aviation Copyright © 2019 Hemas Holdings PLC | www.hemas.com 19
Slide 20: Q4 FY 2018–19: Group Operational Highlights
Q4 (3 months) FY 2018–19: Group Operational Highlights Revenue EBIT Earnings 20Bn 2.0Bn 1.5Bn 6.8% 15Bn 31.0% 1.5Bn 5.4% -12.4% 1.0Bn 47.4% 10Bn 1.0Bn -46.0% 15.0Bn 16.1Bn 1.3Bn 1.4Bn 0.5Bn 5Bn 0.5Bn 0.9Bn 0.6Bn 0Bn 0.0Bn 0.0Bn FY 18 FY 19 FY 18 FY 19 FY 18 FY 19 • Group revenue growth was 6.8% driv
Slide 21: Consumer Sector Performance: FY 2018–2019
Consumer Sector Performance: FY 2018–2019 No. 1 School & Office Supplies Brand Sector Revenues & EBIT in LKR FY 17 –FY 19 No. 1 Baby Care Brand 30Bn 2.7 3.0Bn 25Bn 2.1 20Bn 2.0Bn 1.4 No. 2 Oral Care Player 15Bn 25.6 10Bn 1.0Bn 16.0 16.5 No. 1 Hair Oil 5Bn 0Bn 0.0Bn FY 17 FY 18 FY 19 Sector Revenue E
Slide 22: International entry to Bangladesh with our brand Kumarika
International entry to Bangladesh with our brand Kumarika Sector Highlights International Segment as a % of total H&PC segment u Relaunched Kumarika hair oil with improved formulation in December FY 17 – FY 19 2017 100% u Continued focus on expanding into rural markets in Bangladesh 17% 15% 16% u In
Slide 23: Healthcare Sector Performance: FY 2018–2019
Healthcare Sector Performance: FY 2018–2019 Hemas Healthcare Sectors Sector Revenues & EBIT in LKR FY 17 – FY 19 30Bn 2.3 2.2 2.5Bn 1 Pharma Manufacturing 2.1 25Bn 2.0Bn 20Bn 1.5Bn 15Bn 27.7 23.0 1.0Bn 10Bn 18.8 2 Pharma Distribution 5Bn 0.5Bn 0Bn 0.0Bn FY 17 FY 18 FY 19 Sector Revenue EBIT 3 Hospit
Slide 24: Mobility Sector Performance: FY 2018–2019
Mobility Sector Performance: FY 2018–2019 Sector Revenues & EBIT in LKR FY 17 – FY 19 3Bn 1.0Bn 0.8Bn 0.8 Logistics 2Bn 0.5 0.7 0.6Bn 2.8 2.8 0.4Bn 1Bn 1.9 0.2Bn 0Bn 0.0Bn FY 17 FY 18 FY 19 Sector Revenue EBIT Business Update u Operational challenges in the past quarter due to facility readiness. Ma
Slide 25: Leisure, Travel & Aviation Sector Performance: FY 2018–2019
Leisure, Travel & Aviation Sector Performance: FY 2018–2019 Sector Revenues & EBIT in LKR FY 17 – FY 19 Hotels 5Bn 356.5 5.0 400Mn 4Bn 300Mn 4.3 4.2 3Bn 415.9 200Mn 2Bn 214.2 1Bn 100Mn 0Bn 0Mn FY 17 FY 18 FY 19 Travel Sector Revenue EBIT HEMAS TRAVELS Business Update u Strong quarter in inbound trav
Slide 26: Investment Highlights
Investment Highlights Digital & Innovation People & Talent Sustainability & Wellness Copyright © 2019 Hemas Holdings PLC | www.hemas.com 26
Slide 27: Investment Highlights
Investment Highlights Total Shareholder Return (%) Return on Equity (%) Return on Capital Employed 50% 39.0% 20% 20% 17.6% 16.3% 14.9% 14.4% 25% 15.5% 12.6% 10.7% 0% 10% 10% -25% -50% -39.1% 0% 0% FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 EPS Walk 7 53% 6 5.65 5 4.52 -27% 1% -2% 4 Increa
Slide 28: Driving digital and innovation
Driving digital and innovation u Being driven by Innovation is a core value of Hemas Group, and our digital strategy is at the forefront of our drive towards reinvention in preparation for the business world of tomorrow. Ayubo.life Focusing on making Health and wellness more accessible digitally, co
Slide 29: We continue to invest in people
We continue to invest in people Future Leaders’ Be your best self Programme • “360 You”, the Hemas Employee Value • Successful completion of a third year Proposition was launched in October 2017 and is development program in partnership with Indian an expression of how Hemas commits to enrich Instit
Slide 30: Sustainability & Wellness
Sustainability & Wellness Group Environmental Goals by 2025 Engaging with Our Community Reduction of consumption of water by 50% Reforesting 50% of energy • Scholarship programme in • 49 Pre schools consumption to be Zero waste partnership with ministry • 3500+ children impacted of child affairs ren
Slide 31: Disclaimer
Disclaimer The material in this presentation has been prepared by Hemas Holdings PLC (“Hemas”) and is general background information about Hemas’ activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this