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Hemas Holdings PLC: Investor Presentation 2012/13
Hemas Holdings PLC: Investor Presentation 2012/13
Inflation at single digits for the fourth consecutive year (7.6% in 2012)
USD Per Capita GDP Interest Rates USD Mn. Foreign Direct Investments
3,500 25% 1,200
956
19.08% 1,000 898
2,923 20%
3,000 2,836 752
800
15%
2,400 11.69%
2,500 600 478
9.32% 9.31% 404
2,014 2,057 10% 7.55% 400
2,000
5% 200
1,500 0% 0
2008 2009 2010 2011 2012
2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
HEMAS: A DIVERSIFIED CONGLOMERATE
Transportation
Aviation
Healthcare
Personal Care Pharmaceutical
Distribution
FMCG
Hotels Hydro
Power
Leisure
Destination Thermal
Management
HEMAS GROUP: A SNAPSHOT
30.0
Sector & Market PER vs Hemas PER
Share Price (as at 21.06.2013) : Rs. 35.20
Market Capitalization : Rs. 18.14Bn 25.0
Group Turnover 26,098 21,533 21% Cash From Operations 2,143 1,508 42%
1,600 40%
25,000 20%
1,400 30%
1,000 10%
15,000 10%
800 0%
400 -20%
5,000 0%
200 -30%
0 -5% 0 -40%
2008/09 2009/10 2010/11 2011/12 2012/13 2008/09 2009/10 2010/11 2011/12 2012/13
2007
2003 Entered the
Hospital business
1993 Hemas Holdings by acquiring
listed on the Southern Hospital
1970s Restructured
Colombo Stock in Galle
the Group into Exchange
1962 Diversified subsidiaries
1948 Entered the into travel Entered the
FMCG and tourism Power Business
Founded Hemas business
Drugs Ltd.
TODAY WE ARE
No. 2 player in the personal care market, with market leadership in baby
care
OTC
25.0%
Products,
2% 20.0%
Personal
Care, 22%
15.0%
10.0%
5.0%
Household Food,
Care, 13% 63% 0.0%
Source: Nielsen Retail Audit Data for 40 Categories tracked in General Trade. Personal Care Personal Wash
Excluding Soft Drinks Source: LMRB
FMCG: PERFORMANCE HIGHLIGHTS
Key Statistics 2012/13
Sector posted a revenue growth of 14.5% and a profit growth
of 28.8% Turnover (Rs.Mn) : 7,691
Profit After Tax (Rs.Mn) : 745
Revenue growth was mainly driven by exceptional performance
in Baby Cheramy ,Velvet, Diva detergent, and Clogard Revenue Contribution to the Group : 29%
PAT Contribution to the Group : 39%
Notable market share growth in Personal Care segment led by
baby care, oral care and hair care categories Revenue and Profit after Tax
Rs. Mn Rs. Mn
Winning in the personal care market remains the strategic focus 1,000 100
of the sector -
2008/09 2009/10 2010/11 2011/12 2012/13
-
Revenue PAT
HEALTHCARE INDUSTRY OUTLOOK
Sri Lankan communitys demand for
healthcare and related services are moving
Sri Lankan Healthcare industry was valued at ~ Rs. 278Bn
towards an increasing trend
(USD 2.34Bn) in 2012 (Source: BMI)
Sri Lankas total expenditure on health has increased by a Household Expenditure on
CAGR of around 11% in the past 5 years Rs.
Healthcare
2,500
Private sector continues to play a significant role in
catering to the increasing demand 2,000
1,500
0
1980/81 1990/91 2005 2006/07 2009/10
Revenue growth was driven by the pharmaceutical business which Profit After Tax (Rs. Mn) : 493
posted a revenue growth of 19.4% Revenue Contribution to the Group : 34%
PAT Contribution to the Group : 25%
Hemas Pharmaceuticals remains the market leader with a market
share of 17.95% (Source: IMS) Rs. Mn Revenue and Profit after Tax Rs. Mn
India 6,000
400
300
- -
Our 3rd Hospital in Thalawathugoda was opened by the 2008/09 2009/10 2010/11 2011/12 2012/13
Revenue PAT
TRANSPORTATION INDUSTRY OUTLOOK
In Tons Air Freight Throughput
Transportation industry achieved significant progress with the 200,000
160,000
expansion of the existing road network and related services 120,000
Overall market share in the travel agency space recorded a Revenue and Profit after Tax
Rs. Mn Rs. Mn
double digit growth ahead of the market growth
1,200 350
Hemas was appointed as the GSA for China Southern Airlines, 1,000 300
200
600
Maritime segment recorded a strong growth aided by the 400
150
100
higher throughput of our feeder agency Far Shipping 200 50
- -
2008/09 2009/10 2010/11 2011/12 2012/13
Revenue PAT
POWER INDUSTRY OUTLOOK 8,000 Electricity Demand Forecast in MWs
7,000
5,000
2,000
Government of Sri Lanka focuses on increasing installed 1,000
capacity via thermal generation to meet the growing demand 0
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Dependency on the IPPs is expected to grow in the short to Current Capacity Mix - MW
medium term
RE
Private sector contribution has continued to rise, with the 8%
sector accounting for around 43% of the countrys power Other Hydro
requirements Thermal
30%
42%
Coal
20%
POWER: PERFORMANCE HIGHLIGHTS
Key Statistics 2012/13
Power sector posted a revenue growth of 23.2% and a
profit growth of 12.8% despite the prolonged drought Turnover (Rs.Mn) : 5,509
which affected hydro power generation Profit After Tax (Rs.Mn) : 286
Revenue Contribution to the Group : 21%
Revenue growth was mainly driven by the pass-through
effect of escalating fuel prices of our thermal power PAT Contribution to the Group : 15%
plant, Heladhanavi
Rs. Mn Revenue and Profit after Tax Rs. Mn
Revenue PAT
EXPANSION IN THE WELLNESS SPACE
Hemas acquired a 72% voting and 37% non-voting stake of J.L. Morison Sons & Jones (Ceylon) PLC
JLM commenced operations in 1939, was listed in 1964 and became a 100% Sri Lankan owned
company in 1998
The Group recorded revenues of Rs.3Bn and earnings of Rs.160Mn in 2012/13 and its current market
capitalization is ~Rs.2.5Bn
Pharma manufacturing, an interesting new area for us where JLM has a well regarded
reputation in the local market
OTC pharma brands create a best fit with our existing pharma business
Infrastructure Leisure
24
CORPORATE SOCIAL RESPONSIBILITY
Hemas primary CSR project Piyawara celebrated its 10 year partnership with the Ministry of Child
Development during the year
Three state-of-the-art preschools were opened during the year in the areas of Mulativue and
Kilinochchi
First ever community preschool in the resettled village of Ambalnagar (10km from Kilinochchi) was
opened in July 2012 and the second was opened in Silawathei, Mulativue
Our 36th Piyawara preschool was opened in Theethakarie, Mulativue in February 2013; this is the
second community pre-school opened in Mulativue
CORPORATE SOCIAL RESPONSIBILITY
The 37thPiyawara preschool
was opened in Kilinochchi in
May 2013; this is first ever
model pre-school opened in
Kilinochchi
This school can accommodate
80 children and will be used as
a model training centre by the
Ministry of Education of the
Northern Province
THE BIG HEART PROJECT
Baby Cheramy, celebrates 50 years of enriching lives of Sri Lankan
mothers and children
The Big heart Project was launched together with the Department of
Probation and Childcare Services of the Ministry of Child Development
& Women Affairs, in September 2012, to celebrate this milestone
The project will fund the educational needs of children that are 'at
risk', or in danger of being institutionalized due to the financial
difficulties of their families