hemas holdings plc investor presentation q3, 2013/14
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Hemas Holdings PLC Investor Presentation Q3, 2013/14TRANSCRIPT
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HEMAS HOLDINGS PLC
Investor PresentationQ3 2013/14
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Hemas Group: A SnapshotShare Price (As at 20.02.2014)
: Rs. 37.50
Market Capitalization : Rs. 19.3Bn
% of Total Market : 0.82%
PER : 9.84*
PBV : 1.48
No of Shares : 515Mn
Public Shareholding : 28.73%
Sept 2012 Dec 2012 Mar 2013 Jun 2013 Sept 2013 Dec 2013 -
5.0
10.0
15.0
20.0
25.0
30.0 Sector & Market PER vs Hemas PER
Diversified Sector PER
Market PER
Hemas PER
* PER based on annualized YTD Q3 earnings
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YTD Q3 2013/14
YTD Q3 2012/13
EPS* 3.81 2.76 38%
Net Assets per Share 25.39 21.62 17%
ROE* 16.2% 13.8%
ROCE* 14.5% 13.1%
% Change
Hemas Group: Performance Highlights
* Annualized based on YTD Q3 results
Figures are in Rs. MnYTD Q3 2013/14
YTD Q3 2012/13
Group Turnover 23,665 19,312 23%
Operating Profit 2,281 1,651 38%
Group Earnings 1,473 1,067 38%
Cash from Operations 2,279 375 507%
% Change
Figures are in Rs. MnYTD Q3 2013/14
31 March 2013
Total Assets 32,210 26,008 24%
Net Current Assets 4,160 4,156 0.1%
Shareholders’ Funds 13,084 12,153 8%
Capital Employed 23,754 19,339 23%
% Change
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Group Revenue Growth Exceeds 20%
• Group Revenue for the period ending 31st December 2013 was recorded at Rs. 23.6 Bn, a growth of 23%
• Revenue growth was driven by the Healthcare, FMCG and Transportation sectors
• New acquisitions, J.L Morison and Panasian power contributed Rs. 1,495Mn and Rs. 175Mn to Group Revenue respectively
YTD Q3 2009/10
YTD Q3 2010/11
YTD Q3 2011/12
YTD Q3 2012/13
YTD Q3 2013/14
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Group Revenue
Revenue Growth
Rs.Mn
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Underlying Earnings Grow by 19%
• Group Earnings for the period ending 31st December 2013 was reported at Rs. 1,473Mn, a growth of 38%
• Earnings growth was primarily driven by the capital gain of Rs. 375Mn recognized during the last quarter
• The underlying earnings growth adjusted for the capital gain, hotels closure and startup losses of Thalawathugoda hospital was 18.5%
YTD Q3 2009/10
YTD Q3 2010/11
YTD Q3 2011/12
YTD Q3 2012/13
YTD Q3 2013/14
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Group Earnings
Earnings Growth
Rs.Mn
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Revenue and Earnings Composition
FMCG; 31%
Healthcare; 37%
Leisure; 4%
Transporta-tion; 5%
Power; 19%
Other; 5%FMCG; 38%
Healthcare; 29%
Leisure; 2%
Transporta-tion; 18%
Power; 13%
Revenue Composition Earnings Composition
“Other” segment – (7%)
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FMCG, Focused on Innovation
• FMCG sector posted a revenue of Rs. 7.2 Bn, a growth of 27%
• Revenue growth was led by the strong performance of personal wash and personal care categories
• Sector operating profits grew by 24% led by growth in volumes
• Profit after tax growth was impacted by the increased tax burden due to expiration of the tax holiday
• Dandex, Diva and PRO were re-launched during the quarter enhancing the customer appeal
2009/10
2010/11
2011/12 2012/13
2013/14
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YTD Q3 Revenue and PAT
Revenue PAT
Rs.Mn Rs.Mn
YTD Q3 2013/14
YTD Q3 2012/13 % Change
Turnover (Rs.Mn) 7,237 5,706 27%
PAT (Rs.Mn) 607 567 7%
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Hemas Pharma Outperforms Market
2009/10 2010/11 2011/12 2012/13
2013/14
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YTD Q3 Revenue and PAT
Revenue PAT
Rs.Mn Rs.Mn
• Healthcare sector revenue was Rs. 8.8Bn with a growth of 32%, driven by the Pharmaceuticals revenue which grew by 19%
• Hemas Pharmaceuticals reinforced its market leadership with an increased share of 19.2% (Source: IMS)
• The business acquired a 35,000 sqft. modern warehouse at Elakanda, Wattala to expand the storage capacity
• Hospitals revenue experienced a growth of 29%, boosted with the revenue from our new hospital, Thalawathugoda
• Healthcare sector profits were impacted by the startup losses of the new hospital
YTD Q3 2013/14
YTD Q3 2012/13 % Change
Turnover (Rs.Mn) 8,822 6,662 32%
PAT (Rs.Mn) 417 355 17%
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Hotels Geared up for the Winter
YTD Q3 2013/14
YTD Q3 2012/13 % Change
Turnover (Rs.Mn) 891 1,082 -18%
PAT (Rs.Mn) 20 207 -90%
2009/10
2010/11
2011/12
2012/13
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Revenue PAT
Rs.Mn Rs.Mn
• Club Hotel Dolphin was re-opened after the refurbishment on 1st November 2013 and enjoys occupancy levels over 80%
• Leisure Sector revenue was negatively impacted during the 1st two quarters of the year due to the closure of the two key hotels for refurbishment
• All our four hotels received the ‘Travelife GOLD’ certification in recognition of the highest level of commitment towards sustainable tourism practices
• Avani Kalutara was awarded as the ‘Top Hotel 2014’ by Holiday check travel site
• All our hotels are geared up to close the year on a stronger note
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Container Yard Begins Operations
YTD Q3 2013/14
YTD Q3 2012/13 % Change
Turnover (Rs.Mn) 1,080 747 45%
PAT (Rs.Mn) 289 216 34%
2009/10 2010/11
2011/12
2012/13
2013/140
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Revenue and PAT
Revenue PAT
Rs.Mn Rs.Mn
• Transportation sector revenue surpassed Rs. 1Bn mark posting an impressive growth of 45%
• Revenue growth was driven by the logistics and the aviation segments
• Maritime segment was positively impacted by the growth in transshipment volumes
• Sector operating profits grew by 25% to record at Rs. 335Mn
• Hemas Logistics declared open its first container yard at Welisara in November
• The container yard can store and service over 3000 TEUs at any time using state-of-the-art container handlers
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YTD Q3 2013/14
YTD Q3 2012/13 % Change
Turnover (Rs.Mn) 4,416 4,395 0.5%
PAT (Rs.Mn) 358 212 69%
2009/10
2010/11
2011/12
2012/13
2013/14
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YTD Q3 Revenue and PAT
Revenue PAT
Rs.Mn Rs.Mn
• Power sector revenue growth was hindered by the thermal power generation curtailment imposed by the CEB
• Hydro power segment enjoyed a healthy period with increased rainfall in catchment areas and the increase in avoided-cost-tariff
• Hydro power revenue (excluding Panasian Power) grew by an impressive 89%
• Panasian Power contributed Rs. 175Mn to the sector revenue
• Sector operating profits grew by 56% to record Rs. 433Mn, for which Panasian Power contributed Rs. 129Mn
Healthy 9 Months for Hydro Power
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J.L Morison PAT Improves by 25%
YTD Q3 2013/14
YTD Q3 2012/13 % Change
Turnover (Rs.Mn) 1,905 2,163 -12%
PAT (Rs.Mn) 144 115 25%
2009/10 2010/11
2011/12
2012/13 2013/140
500,000
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YTD Q3 Revenue and PAT
Revenue PAT
Rs.Mn Rs.Mn
• J.L Morison recorded a revenue of Rs. 1.9Bn for the 9 months with the revenue of Pharmaceuticals and Agro segments growing by 15% and 14% respectively
• Operating profit and profit after tax improved by 23% and 25% respectively despite the drop in overall revenue
• Profit growth was largely driven by the pharmaceuticals segment of which operating profit grew by 33%
• J.L Morison contributed 6% to the Group revenue and 8% to Group profit after tax
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Corporate Social Responsibility
• “Piyawara” brand ambassador, Mr. Roshan Mahanama came forward to build the 39th Piyawara community pre-school with his personal funds, in Veheratenna, south of Mullathivu
• Christmas gifts were collected from the Hemas staff and were distributed among children in Malhawa, Bibile and Veheratanna, a resettled village in Welioya
• “Ape Sihiniya”, an exhibition to showcase the paintings and handicrafts of differently abled children from Hambantota Piyawara school was held at Hemas House on 9th and 10th of January 2014
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In Our Efforts of Going Green…• The environmental club of J.L Morison,
“Thuruliya Committee” greeted the new year by planting Mahogani trees in their premises
• The top management of Hemas appreciated and rewarded the staff at Dankotuwa Factory for maintaining over 3,500 plants of jak, mahagony, kohomba and maadang
• Hemas Green club embarked on a pilot project to produce compost with food waste at Hemas House canteen
• The club also organized a lecture by Mr. Srilal Mittapala, a well-known wildlife activist in Sri Lanka, on Udawalawe’s iconic tusker “The Walawe Raja” on 6th December 2013
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Telephone: +94 11 4 731 731Email: [email protected]
Web: http://www.hemas.com
Hemas Holdings PLC Hemas House, 75, Braybrooke Place, Colombo 2,
Sri Lanka
Hemas Investor Relations: