Investor Presentation Financial Year End Results 2011/12 Investor Presentation 2011/12 www.expolanka.com 1
AGENDA Content Speaker • Opening Remarks Chairman • Group Overview CEO – Performance Review CFO – Divisional Performance CFO • Strategy Framework Strategy Team • Sector Overview Strategy Team – Freight & Logistics – Travel & Leisure – International Trade & Manufacturing – Investments & Services • IPO funds and Group strategy Finance & Strategy Investor Presentation 2011/12 www.expolanka.com 2
GROUP OVERVIEW SECTOR COMPOSITION – BASED ON PREVIOUS AND NEW CLASSIFICATION International Strategic Transportation Manufacturing Trading Investments Classification Previous Freight Imports Waste Paper BPO Herbal/ GSA Education Perishable Exports Pharmaceutical Travel and Leisure Investments Tea Branded Foods International Investments and New Classification Freight & Logistics Travel and Leisure Trading & Services Manufacturing Freight GSA Travel and Leisure Trading BPO Agro Processing Education Foods Investments Investor Presentation 2011/12 www.expolanka.com 3
PERFORMANCE REVIEW FINANCIAL SUMMARY Key Financials 2012 vs. 2011 (LKR MN) Key Highlights 2010/11 Change % on 2011/12 (Recurring * ) Recurring P&L • Gross profit was up 8% despite revenue drop because of better Revenue 35,414 36,302 -2.5% yield management. Gross Profit 6,092 5,648 7.9% • EBIT was down 14% due to EBIT 1,818 2,115 -14.0% inflationary costs. • Net Profit 1,230 1,319 -6.8% ROE drop was due to the increase in equity base after IPO. NP for Equity 1,055 1,095 -3.7% Holder ROE 13.1% 25.4% Note: Impact of disposal of subsidiaries 2010 has been excluded for comparison purposes. Investor Presentation 2011/12 www.expolanka.com 4
DIVISIONAL PERFORMANCE SECTOR ANALYSIS Gross Profit Net Profit Investments Investments Intel. Trade & Services & Services & Manu. -5% 12% 10% Travel and Intel. Trade Leisure 4% & Manu. 15% 5% Travel and 69% 91% Leisure Freight & Logistics Freight & Logistics F&L is the largest contributor to group performance. Investor Presentation 2011/12 www.expolanka.com 5
DIVISIONAL PERFORMANCE PROFITABILITY ANALYSIS Net Profits 2011 vs. 2012 Key Highlights (LKR MN) • ITM sector experienced high (24 M) 57M 6 M (127 M) volatility in commodity 1,319 M 1,230 M prices and the Middle East crisis. • GSA profitability dropped because of excess capacity in the market. • Drop in air freight volumes contributed towards lower than expected net profitability in F&L. 2011 Profits Freight & Travel and IT&M Investments 2012 Profits Logistics Leisure and Services Investor Presentation 2011/12 www.expolanka.com 6
STRATEGIC FRAMEWORK GROUP STRATEGY ROE by Sector Value: 35% • Drive all businesses over 3 years to 30.9% 30.9% 25% ROE. 30% 25% Focus: 20% • Emphasis on the freight and logistics sector. 15% 10.8% • Concentrate on scalable businesses. 10% Realign: 5% • Ideal capital structure by business to 0% drive returns. -1.3% -5% • Push businesses towards ROE goal. Freight & Travel and International Investments Logistics Leisure Trading & and Services Manufacturing Investor Presentation 2011/12 www.expolanka.com 7
SECTOR OVERVIEW: FREIGHT & LOGISTICS FINANCIAL OVERVIEW OF FREIGHT & LOGISTICS SECTOR Key Financials for Freight & Logistics Key Highlights 2011 Vs. 2012 (LKR MN) • Better yield management resulted 2011/12 2010/11 Change increase in GP margins. • Gross Profit 4,182 3,637 14.9% Growth in intra-Asia business despite overall volume EBIT 1,511 1,506 0.3% contraction. Net Profit 1,116 1,059 5.4% • Increased contribution from imports. ROE 30.9% 38.7% Investor Presentation 2011/12 www.expolanka.com 8
SECTOR OVERVIEW: FREIGHT & LOGISTICS FREIGHT VOLUMES BY KEY OPERATING SEGMENTS F&L Volumes 2011 vs. 2012 GP Composition 2011/12 7% Air Sea 60% 40% Sea Export Export Import 70% 30% 19% Key Highlights Air Export • Air freight exports were affected mainly due to a contraction in North American trade lane. 13% • No major accounts were lost; overall Air Import business trade volumes dropped. • Sea business continued to show stable 23% profits. Sea Import • Imports saw encouraging growth. Investor Presentation 2011/12 www.expolanka.com 9
SECTOR OVERVIEW: FREIGHT & LOGISTICS F&L OUTLOOK 2012/13 • Volume growth for next year 15% - 20%. • Yields will be maintained. • Intra-Asia to remain robust. • North America stable. • Europe will be challenging. Investor Presentation 2011/12 www.expolanka.com 10
SECTOR OVERVIEW: FREIGHT & LOGISTICS F&L DEVELOPMENTS • Warehouse Project – State of the art retail space for value addition. • Hub Concept: – Colombo as a free port retail hub. • Appointments: – S. Senthilnathan as COO of the freight division. – Global Sales Team (GST) created to increase sales effort. – New IT appointment to streamline operations. • New stations: – Hong Kong – China – USA Investor Presentation 2011/12 www.expolanka.com 11
SECTOR OVERVIEW: FREIGHT & LOGISTICS F&L STRATEGY • Increase market share: – Direct client penetration. – Focus on large accounts. • Capture share in growing intra-Asia market: – New offices across the region. – Small acquisitions • Focus on Retail sector: – Concentrate on apparel and growing regional fashion market. Investor Presentation 2011/12 www.expolanka.com 12
SECTOR OVERVIEW: TRAVEL & LEISURE OVERVIEW OF TRAVEL AND LEISURE SECTOR Key Highlights: Key Financials for Travel & Leisure • Classic Travels continued to 2011 Vs. 2012 (LKR MN) dominate market share of the corporate travel market. • Inbound business stabilised. 2011/12 2010/11 Change Gross Profit 277 223 24.2% New Initiatives: EBIT 51 50 2.0% • Akquasun acquisition Net Profit 45 39 15.4% Outlook: ROE 30.8% 30.0% • Increased corporate travel • India, China market expected to grow. Investor Presentation 2011/12 www.expolanka.com 13
SECTOR OVERVIEW: TRAVEL & LEISURE AKQUASUN INVESTMENT • USD 915,000 for 50%. • Expo has management control. • A destination management company focused on outbound Indian tourists with 16 destinations globally. • Strategic Alignment – Strong hold of the Indian outbound market. – Operational efficiency. – More destinations improves earnings streams. Investor Presentation 2011/12 www.expolanka.com 14
SECTOR OVERVIEW: INTEL. TRADE & MANU. OVERVIEW OF THE INTERNATIONAL TRADE AND MANUFACTURING SECTOR Key Businesses: • Trading: Imports & Exports, Teas, Key Financials for Intl. Trading & Manu. waste paper. 2011 Vs. 2012 (LKR MN) • Processed Foods: Norfolk, Herbal Nutraceuticals. • Agro-Processing: Fruits & 2011/12 2010/11 Change Vegetables, Value added products. Gross Profit 918 904 1.6% Key Highlights: EBIT 270 363 -25.6% • Currency volatility • Middle eastern crisis. Net Profit 126 150 -16.0% • ROE dropped due to asset re- valuation. ROE 10.9% 32.0% Outlook/Highlights/Strategies for 2012 • Entreport • Value added products. • Optimal capital structure. Investor Presentation 2011/12 www.expolanka.com 15
SECTOR OVERVIEW: INVESTMENTS & SERVICES OVERVIEW OF INVESTMENTS AND SERVICES SECTOR Key Businesses: Key Financials for Investments & Services • APIIT 2011 Vs. 2012 (LKR MN) • GSA • 2010/11 Hello Corp. 2011/12 Change • (Recurring) Investments • Corporate services. Gross Profit 715 884 -19.1% EBIT -14 235 -106.0% Key Highlights: • GSA net profit dropped 77%. Net Profit -56 70 -180.0% • APIIT net profit grew by 108%. ROE -1.3% 3.8% Note: Impact of disposal of subsidiaries 2010 has been excluded for comparison purposes. Investor Presentation 2011/12 www.expolanka.com 16
IPO FUNDS & GROUP STRATEGY IPO FUND UTILISATION • Total IPO Funds (net) – LKR 2,308M • IPO fund utilisation: Amount Components (LKR M) Working capital 1,000 Debt settlement 908 Treasury investments 400 • Warehouse investment is in progress. Investor Presentation 2011/12 www.expolanka.com 17
IPO FUNDS & GROUP STRATEGY GROUP STRATEGY ROE FOCUS RESTRUCTURING Drive existing businesses to increase scale in current Drive Group ROE > 25% operations Low ROCE Businesses will operate via debt All business should be able Restructure strategic generate an ROE of 25% and On Existing businesses investments sector holding have scale in operations only core investments Align all businesses to meet New projects & Investments group ROE requirements should be able to generate an through a formal business ROE > 25% structuring process Investor Presentation 2011/12 www.expolanka.com 18
Recommend
More recommend
