HEMAS HOLDINGS PLC

INVESTOR PRESENTATION 2012/13

 ECONOMIC OUTLOOK
Economic growth slowed down to 6.4% in 2012, after recording its highest of 8.2% in 2011

Inflation at single digits for the fourth consecutive year (7.6% in 2012)

Interest rates on a reducing trend

Exchange rate stabilizes around Rs.125/USD after heavy depreciation in 2012

Higher levels of FDI in 2011 and 2012

 KEY ECONOMIC INDICATORS
Inflation Economic Growth Exchange Rate
24.0%
22.6%
10.0% 135
20.0% 8.0% 8.2% 128.82
130
8.0%
16.0% 6.0% 6.4% 125
6.0% 120
12.0% 114.03 115.15 114.88
7.6% 3.5% 115 112.02
6.2% 6.7% 4.0%
8.0%
3.5% 110
4.0% 2.0% 105

0.0% 0.0% 100

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 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

Personal Wash Maritime

Hospital
Home Care Logistics

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

% of Total Market : 0.76% 20.0

PER : 10.93 15.0

PBV : 1.49 10.0

No of Shares : 515.29Mn
5.0
Public Shareholding : 28.33%
-
Sept 2011 Dec 2011 Mar 2012 June 2012 Sept 2012 Dec 2012 Mar 2013

Diversified Sector PER Market PER Hemas PER

 FINANCIAL PERFORMANCE
Figures are in Rs. Mn 2012/13 2011/12 % Change Figures are in Rs. Mn 2012/13 2011/12 % Change

Group Turnover 26,098 21,533 21% Cash From Operations 2,143 1,508 42%

PBT 2,406 1,521 58% Total Assets 26,008 22,656 15%

PAT 1,934 1,261 53% Shareholders Funds 12,153 10,650 14%

Group Earnings 1,658 1,165 42% Capital Employed 19,339 16,848 15%

Performance Indicator 2012/13 2011/12 % Change

EPS 3.22 2.27 42%

Net Assets per Share 23.59 20.67 14%
ROE 14.5% 12.0%
ROCE 15.4% 13.4%
 GROUP TURNOVER AND EARNINGS
Group Turnover Group Earnings
RS. Mn RS. Mn

30,000 25% 1,800 50%

1,600 40%
25,000 20%
1,400 30%

20,000 15% 1,200 20%

1,000 10%
15,000 10%
800 0%

10,000 5% 600 -10%

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

Turnover Turnover Growth Earnings Earnings Growth

 EPS AND ROE
Rs
EPS and EPS Growth Rs. Mn Shareholders Funds vs ROE
3.50 50% 14,000 20.0%
3.22
40% 14.5%
3.00 12,000
12.0% 16.0%
30% 14.6%
2.50 2.36 10,000
2.27
20% 12.3%
11.5%
12.0%
2.00 10% 8,000
1.76
1.51
1.50 0% 6,000
8.0%
-10%
1.00 4,000
-20% 4.0%
0.50 2,000
-30%

0.00 -40% - 0.0%

2008/09 2009/10 2010/11 2011/12 2012/13 2008/09 2009/10 2010/11 2011/12 2012/13

EPS EPS Growth Shareholders' Funds ROE

A JOURNEY OF 65 YEARS

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

Market leader in pharmaceutical distribution

First internationally accredited hospital chain in Sri Lanka

Only Sri Lankan hotel chain that manages an international brand

Market leader in the Airline GSA business
Contributing ~ 6% to the national power grid
 FMCG INDUSTRY OUTLOOK
Total FMCG Market FY 2012 ~Rs. 130Bn Market growth rates for Personal Care and
Personal Wash categories

Value Contribution Personal Care and Personal Wash Market Growth

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

Bangladesh operations achieved a significant turnover growth 8,000 800

of 142.8% over LY 7,000 700

6,000 600
5,000 500
Sector exited from food & confectionery category with the sale 4,000 400
of Mr. Pop and Yummee brands 3,000 300
2,000 200

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

An urgent need for effective private healthcare solutions 1,000

resulting from rising income levels and lifestyle changes 500

0
1980/81 1990/91 2005 2006/07 2009/10

Healthcare expenditure (Monthly Avg in Rs.)

Source: CBSL Statistics
 HEALTHCARE: PERFORMANCE HIGHLIGHTS
Sector revenue and profit grew by 20.0% and 53.8% Key Statistics 2012/13
respectively Turnover (Rs. Mn) : 8,976

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

The Pharmaceutical business attracted a new agency, Sun 10,000 600

Pharma Limited, the 3rd largest pharmaceutical company in 8,000

500

India 6,000
400

300

Hospital sector generated a revenue of Rs. 1.3Bn posting a 4,000

200

growth of 22.7% 2,000

100

- -
Our 3rd Hospital in Thalawathugoda was opened by the 2008/09 2009/10 2010/11 2011/12 2012/13

President Mahinda Rajapaksa on 18th June 2013 Revenue PAT

NEWEST MEMBER IN THE HOSPITAL CHAIN
Hemas Hospital, Thalawathugoda
 LEISURE INDUSTRY OUTLOOK
Sri Lanka becoming an increasingly popular tourist destination
with post war developments
The Lonely Planet listed Sri Lanka as the No.1 country to visit in
2013
Over 1Mn tourists arrived to Sri Lanka in 2013, a YoY growth
of 17.5%
Inability to convert improved arrivals to guest nights resulted in
a drop of average occupancy rates in 2012
Increased accessibility to drive demand, mainly in Far East and
South
 LEISURE: PERFORMANCE HIGHLIGHTS
Key Statistics 2012/13
Leisure sector revenue grew by 38.6% while profits recorded an Turnover (Rs.Mn) : 1,643
impressive growth of 275.4%
Profit After Tax (Rs.Mn) : 464
Improved web sales and excellent relations with tour operators Revenue Contribution to the Group : 6%
contributed to the excellent performance of Hotels
PAT Contribution to the Group : 24%
Annual average occupancy of Serendib Hotels:
Rs. Mn Revenue and Profit after Tax Rs. Mn
- Dolphin - 86%
1,800 500
- Avani Bentota - 67% 1,600 450
- Sigiriya - 71% 1,400 400
350
1,200
300
Guest profile at Serendib Leisure Hotels was mainly driven by 1,000
800
250

the traditional European markets led by Germany 600

200
150
400 100

Diethelm Travels, the destination management arm of the Group 200

-
50
-
enjoyed an exceptional year, posting a profit growth of 156.4% 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

Mattala Rajapaksa International Airport: Phase 1 targets a 80,000

40,000
passenger volume of 1Mn and a cargo throughput of 45,000MT 0
p.a 2008 2009 2010 2011 2012
Source: SL Freight Forwarders' Association
statistics 2013
2nd terminal of BIA with a capacity to handle 9mn passengers
p.a. to be constructed under the expansion project Volume of Container handling
TEUs 000 and Transshipments
Upgrading of the ports remain at the forefront of the countrys 5,000

development strategy 4,000

3,000
2,000
Infrastructure development throughout Sri Lanka creates a 1,000
significant demand for logistics facilities 0
2008 2009 2010 2011 2012

Container handling Transshipments Source: CBSL Statistics

 TRANSPORTATION: PERFORMANCE HIGHLIGHTS
Key Statistics 2012/13
Sector experienced a healthy year with its revenue and profit Turnover (Rs.Mn) : 1,101
growing by 52.5% and 33.6% respectively Profit After Tax (Rs.Mn) : 328
Revenue growth was mainly driven by the Logistics segment led Revenue Contribution to the Group : 4%
by the strategic investment made in ForwardAir PAT Contribution to the Group : 17%

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

the largest airline of China 800

250

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

Growth in economy to accelerate the demand for power 6,000

5,000

Electricity generation in 2012 increased moderately by 2.4% 4,000

to 11,800 GWh 3,000

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

High O&M charges and translation losses on foreign 6,000 450

currency borrowings impacted the bottom line 5,000

400
350
4,000 300
Average plant factor of the mini hydro power plants 250
3,000
stood at 38% due to poor rainfall in catchment areas 200
2,000 150
100
Hemas power acquired a 29.3% stake of Panasian Power 1,000
50
PLC which owns 2 mini hydro plants -
2008/09 2009/10 2010/11 2011/12 2012/13
-

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

The industry verticals of the company could be identified as follows:

Own range of consumer products
Distribution of imported FMCG products
Importing and distribution of pharmaceuticals & diagnostics
Manufacturing and distribution of generic pharmaceuticals
Distribution of agro chemicals
 JLM STRATEGIC FIT
Traded and manufactured consumer brands can benefit from our island wide distribution
expertise

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

Traded pharma will further strengthen the groups core expertise

Asset base: Rs. 2Bn of NAV

Purchase consideration: Rs. 2.5Bn (100%)

OUR PORTFOLIO
Wellness

Personal care Pharmaceutical & Hospitals

OTC

Infrastructure Leisure

Power Hotels and Destination

Transportation Travel Management

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

A 20-20 cricket match which re-united the 96 world cup champions

was played in January 2013 to fund the project
 Hemas Investor Relations:

Telephone: +94 11 4 731 731

Email: ir@hemas.com
Web: http://www.hemas.com

Hemas Holdings PLC

Hemas House, 75, Braybrooke Place, Colombo 2, Sri Lanka