September 2017 John Keells Holdings PLC 1
About JKH Market cap of USD 1.38 billion ▪ No controlling shareholder - 98.4% free float ▪ Foreign shareholding - 52% ▪ The Board comprises of five Executive Directors and five ▪ Independent Non- Executive Directors John Keells Holdings PLC 2
Organisational structure Industry groups, sectors and primary brands 3
Cumulative Profitability Update : For the Year Ended 31 March 2017 PAT to equity holders of JKH FY2017 FY2016 Industry Group YoY Growth (%) (Rs. Million) (Rs. Million) Transportation 2,968 2,448 21 Leisure 4,165 3,684 13 Property* 508 1,179 (57) CF & R 3,165 2,655 19 Financial Services 1,978 1,665 19 Information Technology 468 96 389 Total PAT 16,275 14,070 16 11.84 10.52 13 Diluted earnings per share (Rs.) *Decline is attributable to the revenue recognition cycle of the residential apartments John Keells Holdings PLC 4
Leisure - Overview The Leisure sector has two primary revenue generators- ▪ Hotels (“Cinnamon”) ▪ ▪ Inbound Travel (Walkers Tours & Whittall Boustead) ▪ The Hotel division operates 8 Resort hotels in strategic tourist destinations (1,000 rooms) ▪ 2 five star city hotels in Colombo (837 rooms) ▪ 1 select- service business hotel (“Cinnamon Red”, 240 rooms) ▪ ▪ 3 Resort properties in the Maldives (340 rooms) ▪ JKH controls 10% of the country’s 4 -5 star class tourist accommodation, and around 40% of Colombo's formal hotel room inventory. Partners include global giants such as Thomas Cook, Kuoni, Hotel Plan and ▪ Virgin Holidays John Keells Holdings PLC 5
Transportation - Overview ▪ 42% stake in South Asia Gateway Terminals (SAGT), one of South Asia's most productive shipping terminals . ▪ Largest cargo and logistics service provider in the country ▪ Leading bunkering services provider ▪ Joint Ventures with Deutsche Post for DHL Air Express and A.P. Moller for Maersk Lanka ▪ GSA for Jet Airways, KLM Royal Dutch airlines and Gulf Air. Other operations include warehousing and supply chain management John Keells Holdings PLC 6
The strategic location of the Port of Colombo linking key shipping routes GWADAR BAHL KARACHI KOLKATA MUMBAI VISHAKHAPATNAM CHITTAGONG YANGON CHENNAI ADEN KOCHI LAMU MOMBASA DAR-ES-SALAM PORT LOUIS CAPE TOWN John Keells Holdings PLC 7
Capacity enhancements in the Port of Colombo 8 John Keells Holdings PLC
Rapid absorption of capacity in the Port of Colombo ▪ Container handling capacity in the region Port Container handling capacity (TEUs) Colombo 7.5 million Hong Kong 21 million Singapore 40 million Shanghai 36 million Sources: Government HK ▪ Port of Colombo utilisation Total Port of Colombo volumes – CY2016 5,735,005 Utilisation 76% ▪ Port of Colombo volumes Jan- Aug 2017 Jan- Aug 2016 1,051,201 SAGT 1,172,223 YoY Growth of 1,438,653 SLPA 6% at the 1,307,183 Port of Colombo 1,295,390 CICT 1,542,137 3,785,244 Total 4,021,543 Source: Sri Lanka Ports Authority John Keells Holdings PLC 9
Property - overview ▪ Four high-rise apartment complexes completed ▪ The Monarch ▪ The Emperor ▪ OnThree20 ▪ “7th Sense” on Gregory’s Road ▪ “John Keells Land”; explore property development opportunities by leveraging on brand equity ▪ Focused strategies for expansion via developer/landowner tie ups “7th Sense” on Gregory’s Road ▪ Management of two neighbourhood malls Ongoing projects Total units The Residence at Cinnamon Life 231 The Suites at Cinnamon Life 196 10
Cinnamon Life ▪ Cinnamon Life is a US$ 850 Million, mixed-use development with features similar to integrated resorts in the region ▪ Largest private sector led commercial development in Sri Lanka ▪ Internationally acclaimed construction contractors – A consortium led by Hyundai Engineering and Construction Co. of South Korea
Cinnamon Life John Keells Holdings PLC 12
Development Programme Conferencing (2,500 pax) in three venues and car park facility (2,450 slots) 800 guest room hotel. Include conferencing, banqueting, 7 specialty restaurant and entertainment facilities Rentable mall and entertainment space of 372,000 Sq. Ft (Gross – 518,000 Sq. Ft) One residential development of approximately – 358,000 Sq. Ft (231 units). Second residential development of approximately – 255,000 Sq. Ft (196 units). A standalone office development - 254,000 Sq. Ft rentable area Note: Areas are subject to change based on final drawings John Keells Holdings PLC 13
Consumer Foods and Retail The Consumer Foods sector comprises of 3 major categories; beverages, frozen • confectionery and convenience foods Market leader in all three categories with a portfolio of leading consumer brands • including “Elephant House” soft drinks and ice creams as well as “Keells” and “Krest” range of processed meats The Retail sector focusses on modern organised retailing through the “Keells Super” • chain of supermarkets Operates 68 supermarkets as at 31 st August 2017 • 14
Financial Services - Overview Union Assurance (UA) offers comprehensive insurance solutions in the Life ▪ Insurance segment while General Insurance solutions are offered through its associate Union Assurance General Limited (UAG) Nations Trust Bank (NTB) offers complete banking solutions through its network ▪ of branches for corporate, retail and SME clients. John Keells Stock Brokers (JKSB) is one of Sri Lanka's most prestigious brokerages ▪ and has a number of trading tie-ups with leading foreign securities houses. It's client base largely consists of high net-worth investors and foreign funds. 15
THANK YOU This document was produced by John Keells Holdings PLC for information purposes only. The information contained in this document are a review of the financial information pertaining to Quarter 1 of the Financial year 2018, and does not constitute an issue prospectus or a financial analysis. Whilst John Keells Holdings accepts responsibility for the accuracy of the information contained in this document, it does not assume any responsibility for investment decision made by the prospective investors based on information contained herein. In making the investment decision, prospective investors must rely on their own examination and assessments of the Company including the risks involved . John Keells Holdings PLC 16
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