JAT HOLDINGS LIMITED

Initial Public Offering Factsheet

JUNE 2021
PRIVATE & CONFIDENTIAL

An Initial Listing Application to list the shares of Financial Advisors and Managers to the Offer

the Company has been submitted to the Colombo

Stock Exchange for Listing Approval
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AT A GLANCE

JAT has been the undisputed market leader in the wood coatings space for over 20 years in Sri Lanka, whilst also representing global and
homegrown brands in varied spheres such as decorative paints, chemicals, brushes, office furniture, kitchens, wardrobes, flooring and ceilings.

The Company's partnership with the renowned wood coatings brand “Sayerlack” spans over 25 years, with JAT having been recognised as the no. 1
partner globally for Sayerlack. Since 2010 Sayerlack has been a part of The Sherwin-Williams Company, a multinational paints and coatings
player who is the global market leader for wood coatings.

The Company has expanded its wood coatings footprint to Bangladesh, Maldives, India and Africa. JAT has enjoyed market leadership in this segment for
over 10 years in Bangladesh (accounting for over 25% of JAT’s revenue) and is also the no. 1 player in the Maldives.

With its unique offering of products, JAT has secured contracts in prestigious projects such as Altair, One Galle Face, 606 The Address, The Waterfront, Luna
Apartments, Defense Headquarters Complex and Prime Grand.

28 20 07
Years of operations Brands represented Export markets

$ LKR 1.8 Bn 5,000+ 35

Export revenue Customer touchpoints No. of distributors

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KEY IPO HIGHLIGHTS

Ordinary Voting LKR 27.00 LKR 2.2 Bn 82,904,846 16.24% LKR 13.8 Bn
Type of share IPO price per share Offer size # Shares offered Stake offered Market capitalisation

USE OF PROCEEDS IMMEDIATE UPSIDE ON THE JAT SHARE

LKR 433 Mn The IPO price per share of LKR 27.00 offers
LKR 515 Mn
Enhancing the an immediate upside of 19.5% to an
Set up
manufacturing plant
existing R&D facility
incoming investor on the value per share 19.5%
to a fully fledged IMMEDIATE
in Bangladesh state-of-the-art of LKR 32.25 derived from a combination UPSIDE
facility in Sri Lanka
of DCF and Forward PER valuation

The implied PER based on the FY22E

LKR 257 Mn
Expanding the
LKR 302 Mn earnings, of LKR 1,194 Mn, is at 10.3x – a 10.3x
Set up 40.5% discount to the current adjusted IMPLIED PER
“WHITE by JAT”
Marketing and manufacturing
peer PER of 17.3x
Development plant and
Initiatives expanding the
reach in Africa

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Trailblazer in Finishing and Furnishing Solutions with Strong Market Positions Across
Key Segments

Finishing Solutions Furnishing Solutions

Wood Paints and Brushes and Retail Projects

Coatings Chemicals Rollers

Key Products A range of Interior/Exterior Emulsion Classic, Interior/Exterior Office Furniture, Kitchens, Office Furniture, Kitchens,
WB/PU/UV/Polyester and Enamel, Filler, Wall Rollers and Wood Coating Wardrobes and Vanities Wardrobes, Decking,
/Epoxy Resin/NC Coatings Putty and Waterproofing Brushes Wooden Flooring, Ceilings
Chemicals and Ad-mixture

Years of Presence 28 7 9 10 12

Market Positions No. 1 in Sri Lanka, Bangladesh
and Maldives (55% market
share in WB & PU wood
coatings in Sri Lanka)
WHITE by JAT range launched
No. 1 player in Sri Lanka No. 1 player for bespoke luxury kitchens, decking and
in Dec 2020 has been a Huge
with c. 25% market share ergonomic office furniture in Sri Lanka (over 2,000
Success with first of its kind
(up from c. 10% in 2018) luxury bespoke kitchens installed and secured)
online platform

3 Year Average 68.9% 15.9% 4.0% 0.5% 10.8%

Revenue Mix

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Leading Paints and Coatings Company in Sri Lanka with a Robust Portfolio of Homegrown
and Global Brands
Wood Coatings Paints and Chemicals Brushes and Rollers Retail and Projects

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Export Market Focused Growth Led by Bangladesh to Propel the Company Going Forward to
Become a Regional Leader in the Industry
COVID Adjusted Geographical Revenue Mix #
JAT aims to revolutionize key export markets such as Bangladesh by leveraging on its
track record of operating in Bangladesh, and convert traditional users of 1%
1% 0%
Nitrocellulose (NC) and varnish wood coatings to higher value Polyurethane (PU) Sri Lanka
coatings at an accelerated pace driven by the establishment of its manufacturing plant Bangladesh
and innovation capabilities via its R&D. India
30%
Maldives
Other
JAT enjoys a market share of c. 28% in the PU wood coating space in Bangladesh.
Based on estimation, the wood coatings market size in Bangladesh is over LKR 20 #From FY18 – FY20 and
Bn, with c. 70% accounting for NC/varnish. The graph below indicates the estimated 67%
excludes revenue from Projects
conversion rates from NC to PU in the long term in Bangladesh.

Revenue from Exports (LKR Mn)

2,334

1,677 1,787
1,629

40
29 664
22 24
14
7
FY22E FY26E FY30E FY18 FY19 FY20 FY21 FY22E

Wood coatings market (LKR Bn) PU / WB market (LKR Bn) Due to the impact from COVID in export markets

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High Caliber Board and Management with Expertise in Diverse Fields Adopting Best-in-class
Governance Practices

Dr. Sivakumar Selliah Mr. Aelian Gunawardene Mrs. Jocelyn Gunawardene

Chairman Founder & Managing Director Non-Executive Director
Non-Executive Director Executive Director Non-Independent
Independent Mr. Nishal Ferdinando
Chief Executive Officer

Despite being a privately held entity,

for the past 8 years JAT has been run
Mr. Hussain Akbarally Mr. Girish Patil Mrs. Anika Williamson with the highest levels of corporate
Non-Executive Director Non-Executive Director Non-Executive Director governance and professionalism akin
Independent Independent Non-Independent to a listed entity, with a high caliber
board and respective board sub-
committees such as Audit & Risk
Management, HR & Remuneration,
Related Party Transactions, Investment
etc.

In addition, the Company has also

been publishing annual reports for the
Mr. Richard Gunawardene Mr. Devaka Cooray Mrs. Priyanthi Pieris past 8 years, with the annual reports
Non-Executive Director Non-Executive Director Non-Executive Director for FY17 and FY18 winning the Bronze
Non-Independent Independent Independent awards under trading companies’
category at the 53rd and 54th Annual
Report Awards of the Institute of
Chartered Accountants of Sri Lanka.

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A Plethora of Awards and Accolades Solidifying JAT’s Status as a Trailblazer
A+ (Stable)
Rating
One of the first private corporates
to be recognised with a rating of A+
with a stable outlook for 5
consecutive years
Recognised among the Top 100
Most Respected Companies for four
consecutive years.
Ranked amongst LMD’s Top 20
Conglomerate Brands in Sri Lanka in
2020
An unprecedented four accolades at the
National Business Excellence Awards 2019
including the ‘Bronze Award for Overall
Excellence’, ‘2nd Runner Up in the Extra-
large Sector’ and ‘Gold Award in the
Trading Sector’
Bronze award for “Sayerlack” as the B2B
brand of the year at the SLIM Brand
Excellence in 2015.
‘Top 10 winner’ in 2019 and 2016 at
CNCI Achiever Awards by the Ceylon
National Chamber of Industries
Bronze at the Effie Awards 2013 in
the Household Supplies and Services
category for Sayerlack.
PRIVATE & CONFIDENTIAL
Recognition at the Presidential
Export Awards 2019.
Sri Lanka’s first ever ‘wood pencil’ at D&AD
awards in London in the environmental
sustainability program.
Gold in Lotus Innovation award and Gold in
Lotus Roots award at the Adfest 2019 held in
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IPO Price of LKR 27 per share at a 10.3x Implied PER on FY22E Results

VALUATION AND INVESTMENT REQUIRED INCREASING DIVIDEND YIELDS OVERTIME

8.7%
JAT is listing on the CSE via an IPO to meet the dual objectives of raising 7.9%
additional capital for business expansion projects and of providing an exit
option for an existing investor 6.0%
4.9%
Out of the LKR 2,238 Mn to be raised via the IPO, LKR 1,507 Mn will be 3.5%
Infused into JAT to set up manufacturing facilities in Bangladesh and Africa,
enhance existing R&D facilities and promotional activities for “WHITE by JAT”.

JAT’s Implied PER based on the FY22E earnings, of LKR 1,194 Mn, is at 10.3x –
lower than the current trading peer multiple of 17.3x FY22E FY23E FY24E FY25E FY26E

IPO - PRICE LKR 27.00/SHARE

VALUATION METHODOLOGY WEIGHTAGE

VALUE PER SHARE
(LKR)
The Company intends to maintain at a minimum, the
current dividend pay out ratio of 40%. As such, the 40%
dividend yield (post-IPO) is expected to be between DIVIDEND
Discounted Cash Flows 90% 32.50 3.5% - 8.7% over the forecast period PAYOUT

PER – Forward # 10% 34.51

Average Value Per Share (LKR) 32.70

# Based on a target earnings for the Financial Year Ending 31 March 2022

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DISCLAIMER
This presentation has been prepared by Capital Alliance Partners Limited (“CAL”) and NDB
Investment Bank Limited (“NDBIB”) and unless otherwise expressly authorized by CAL and
NDBIB, shall not be used by any third party. This report is for the use of the intended
recipient only. Access, disclosure, copying, distribution or reliance on any of it by anyone else
is prohibited and may be a criminal offence. The presentation does not constitute or form of
any offer for sale or invitation, or solicitation of an offer, to subscribe for or purchase any
securities and neither this presentation nor anything contained herein shall form the basis of
or be relied on in connection with any contract or commitment whatsoever.

This presentation has been prepared and issued on the basis of publicly available
information, internally developed data, information provided by JAT Holdings and other
sources, believed to be reliable. CAL and NDBIB however do not warrant its completeness or
accuracy. Opinions and estimates given constitute a judgment as of the date of the material
and are subject to change without notice. This presentation may contain forward-looking
statements regarding, amongst other things, the Company's outlook, business and strategy
which are current as of the date they are made. These forward-looking statements are based
largely on the current assumptions, expectations and projections of the directors and
management of the Company about the business, and the industry in which the Company
operates in. These statements are not guarantees of the Company’s future performance and
are subject to a number of risks and uncertainties, some of which are beyond the Company's
control and are difficult to predict. Future developments and actual results could differ
materially from those expressed in the forward-looking statements. In light of these risks
and uncertainties, there can be no assurance that the forward-looking information will prove
to be accurate. Certain data in this presentation has been obtained from various external
data sources and CAL and NDBIB have not verified such data with independent sources.

The recipients of this presentation must make their own independent decision regarding any
securities, investments or financial instruments mentioned herein. CAL, NDBIB, its directors,
officers, consultants, employees, associates or business partners, will not be responsible, for
any claims damages, compensation, suits, damages, loss, costs, charges, expenses, outgoing
or payments including attorney’s fees which recipients of this presentation suffers or incurs
directly or indirectly arising out actions taken as a result of this presentation.

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