www.hemas.

com
 Contents

• Country Overview : Key Statistics

• Hemas Group: A Snap Shot
• Our Businesses
• FMCG
• Healthcare
• Transportation
• Leisure
• Power
• CSR – Hemas Outreach Foundation

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 Sri Lanka: Key Statistics

Nominal GDP USD 51Bn (2010)

GDP per Capita USD 2,399 (2010)
Real GDP Growth 8.0% (2010)
Inflation 9.8% (April 11, CCPI Y-Y change)
Interest Rate 7.3 % (12-month T-bill)
Exchange Rate LKR 110/USD

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Source: CBSL, Country Report - Sri Lanka, Economist Intelligence Unit, Global Finance, Asian Tribune
 Post War: A new era of opportunity

• Political stability post elections

• Economy expected to expand ~ 6.6% a year over the next 5 years

• Improved investor confidence: stock market performance in 2010

~104% (2009 ~ 125% )

• Tourism potential: 46% growth in arrivals for 2010

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Source: CBSL, Country Report - Sri Lanka, Economist Intelligence Unit, Global Finance, Asian Tribune
HEMAS GROUP

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 Hemas : Key Statistics

Share Price Rs 47.50

Market Capitalization Rs 24.3Bn
% of Total Market 0.94%
PER 20.1 times
PBV 2.7 times
No of Shares 512Mn
Public Shareholding 28.05%

Rs Mn. 10/11 09/10 Change

Group Turnover 18,067 14,997 20.5%

Group Earnings 1,210 902 34.2%
Shareholders’ Funds 8,874 7,692 15.4%
Capital Employed 14,666 12,367 18.5%
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 The Hemas Group

Hemas Holdings PLC

Hemas Power
FMCG Healthcare Leisure Transportation Other
PLC (75%)

Serendib Heladhanavi IT Network

Pharma Hotels PLC GSAs
(47%) Solutions
(51%)
Hospitals
Diethelm Travels Hydro Power Property
(70%)
Travels
(80%)
Maritime BPO

Freight &
Logistics
(49%)

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 Our Portfolio - FY10/11
Earnings
Turnover
0%
4% 3% 16%

19% 32%
38%

23%
6%

Capital Employed
4%
36% 19%

9%
18%
5%

30%
27%

10%

FMCG HEALTHCARE LEISURE POWER TRANSPORTATION OTHER 8

 Group Revenue: 5-Year CAGR ~ 13.1%

Rs. Mn.
20,000 25%
20% 20%
18,000 20%
20%
16,000
14,000
15%
12,000
10,000 10%
7%
8,000
5%
6,000
4,000
0%
2,000 -1%

- -5%
2007 2008 2009 2010 2011

Top line Growth

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 Growth in EPS Expected to Rebound

Rs.
2.50 34% 40%
30%
2.00
17% 20%
12%
1.50 10%
4% 0%
1.00 -10%
-20%
0.50
-32% -30%
- -40%
2007 2008 2009 2010 2011

EPS Growth

Comparative figures adjusted for sub division of ordinary shares in the proportion of 5:1
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 ROE: Showing signs of improvement
Rs. Mn.
10,000 25%
9,000 21.0%
19.4%
8,000 20%
7,000
6,000 14.6% 15%
11.5%
5,000
12.3%
4,000 10%
3,000
2,000 5%
1,000
- 0%
2007 2008 2009 2010 2011
Shareholders' funds ROE
11
 Cash flows Vs Earnings

Rs. Mn.
2,500

2,000

1,500

1,000

500

-
2007 2008 2009 2010 2011
Operating Cashflow Earnings

12
 Governance

• Board of Directors:
– Four independent non- executive directors (including Chairman), one
non-executive director, three executive directors
• Board sub committees:
– Audit committee – Two independent non- executive directors
– Remuneration committee - Two independent non- executive directors
• Focus on Risk Management

13
 FMCG: Overview
FMCG Market ~ 141Bn
• Hemas, No.2 in Personal Care 11%
category
Food & Beverages
15%
• Portfolio includes 18 popular brands Personal Care

Homecare
• Market Leader in baby care, hair oil 74%
and men’s grooming categories

• Modern state-of-the-art production

Hemas
factory with R&D facilities
19%
• Island wide distribution reach Personal Care
~ 80,000 outlets
Food & Home Care

22% 59%
Personal Wash

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 FMCG: Key Brands

Baby Cheramy
• Market leader in the baby care
category

Diva
Clogard • A leading washing powder in
the market
• Clear USP - Clove oil

Kumarika
• Market leader in the hair oil Velvet
market
• Toilet soap, re-launched in
• 4thlargest revenue generator in December 09
the sector

15
 FMCG: 10-11 update
Turnover
Key Statistics 2010/11 2009/10 Growth

32%
Turnover (Rs. Mn) 5799 5247 11%

Profit After Tax (Rs. Mn) 519 636 (18%)

Sector Group

• Baby care, Fragrances, Homecare and Personal wash

contributed positively to growth in turnover

• New taxes levied on imports and increasing raw material

prices impacted profitability, year-on-year

• Diva commenced local manufacturing at Dankotuwa

• Re-launch of Fems, our sanitary napkin brand and the launch

of new variants of Kumarika, our hair oil brand
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 FMCG: Accolades for our manufacturing facility

• Gold award for the Extra Large

Category at the CNCI ‘Achievers of
Industrial Excellence’ Awards 2010

• GOLD Award at the ‘National

Productivity Award 2009/10’
presented by the National
Productivity Secretariat

17
 FMCG: Strategic Focus

• Consolidation of Personal care brands

• Strengthen Household and Feminine Hygiene categories
• Expand with selected categories in Bangladesh market
• Explore opportunities to expand the Foods portfolio

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 Healthcare: Overview of the Pharmaceutical business

Total Market
• Core business: distribution of
pharmaceutical products

• Market leader with a share of 30%

16.4% (source: IMS)

• Represents 25 multinational 60%

Total Market
pharmaceutical companies 10%

• Widest and strongest distribution

network
30%
Private/Retail segment - pharmacies
• Overall pharmaceutical market Institutional segment - Private hospitals & Osu Sala
grew by ~ 20% , in 2010, driven by
growth in volume (Source: IMS ) 60% Tender segment - govt. hospitals & SPC
10% 19
 Healthcare: Overview of Hospitals
Inpatient split between Out Patient split between
Govt. and Private Govt. and Private Hospitals
• 100-bed hospital in Wattala and a 50-bed
Hospitals hospital in Galle
13%
40%
• Operations of Wattala commenced in
87% 60% December 2008 and Galle in March 2009

• Dedicated to provide patient centric

Private Public Private Public
medical care at affordable prices

Western Province • Certification pending for ACHSI

Private Sector Revenue Split
accreditation
6%
22%

23% • ISO 15189 awarded for laboratory services

1%
24%
• Tie-ups with institutions providing tertiary
12%
education in nursing
12%
Durdans Nawaloka Asiri Medical
Asiri Surgical Asiri Central Lanka Hospitals • 3rd hospital at Battaramulla, to commence
Hemas construction 20
 Healthcare: Our Hospitals at Wattala & Galle

Wattala
• 100-bed state-of-the-art hospital with 10-bed
ICU & NICU
• Approximately 130 consultants practice on a
visiting basis
• Modern facilities including 20 consultation
chambers and 5 operating theaters
• Fixed priced health packages to ensure
affordability & predictability

Galle
• 50-bed hospital with ICU
• Focus on providing health services
to the fast growing suburban
community
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 Healthcare: 10-11 update
Turnover

Key Statistics 2010/11 2009/10 Growth

36%
Turnover (Rs. Mn) 6514 5049 29%

Profit After Tax (Rs. Mn) 232 68 239%

Sector Group

• Hospital sector showed a Turnover growth of 45% for the year

• Wattala Hospital achieved cash break-even position in May 2010, 18 months after
commencement
• Growing consumer confidence in our Hospitals reflected by a 38% increase in
surgeries
• Pharmaceutical business continued to maintain its position as market leader,
recording a turnover growth of 24%

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Healthcare: Hospital laboratory expands to open in Ragama

• The new lab is equipped with

automated biochemistry and
hematology analyzers, providing
speedy and accurate laboratory test
reports round the clock

• Lab records 110 blood tests per day

• The lab also provides ECG service,

Channeling & information services
and CT & MRI referral services for
Hemas Hospital Wattala

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 Healthcare: Hospital Expansion Plan

• Two 50 bed hospitals in Battaramulla

and Ratmalana
Battaramulla

• Approximate date for commencement

of construction - May 2011 (1st
Hospital in Battaramulla)
Colombo

• Period of construction estimated at 12

South

months

• Commercial operations expected to

start within 3 months following
completion

• Estimated project cost per new

hospital – Rs 950 Mn
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 Healthcare: Strategic Focus

• Expansion plans for OTC business

• Looking to attract new agencies and consolidate market position in
the Pharmaceutical market
• Stabilize operations in existing hospitals and expand into identified
key locations & sites

25
Transportation: Overview

• Sector operates in the Aviation, Maritime and

integrated logistics space

• Market leader in aviation, representing two of

the largest airlines, Emirates (EK) and Malaysia
Airlines (MAS)

• Maritime arm represents a Singaporean feeder

agency, Far Shipping

• Entered the asset ownership business space by

acquiring a 17% stake in MSL

• Sector entered into an agreement with NCGB

India and Lanka IOC to provide Maritime Support
Services

• Retains interest in Courier and the Freight

Forwarding industry
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 Transportation: 10-11 Update
Turnover
4%
Key Statistics 2010/11 2009/10 Growth

Turnover (Rs. Mn) 734 664 11%

Profit After Tax (Rs. Mn) 224 181 24%

Sector Group

• Growth in passenger sales drives sector performance during the year

• GSA passenger and cargo sales have shown a growth of 38% and 21% respectively,
year-on-year
• Hemas was appointed as the GSA in Sri Lanka for Ukraine International Airlines during
the year
• Positive sentiment surrounding maritime industry contributes growth in Far Shipping
sales

• Far shipping operations expands to Chittagong , Bangladesh 27

 Transportation: Strategic Focus

• Consolidate the market leadership position in the Aviation business

• Look out for opportunities in the local aviation industry
• Opportunities to expand the Maritime and Ports related business

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 Leisure: Overview
• Hemas owns 51% stake in Serendib Hotels, a public listed hotels group
• Serendib Group consists 3 hotels located in Bentota, Negombo, Sigiriya, and
manages and owns 19.9% of a fourth hotel in Kalutara with a room strength of 105
• Hemas owns 2 undeveloped properties in Kandy and Tangalle
• Strategic alliance with Minor International, Thailand
• Diethelm Travels, a strategic partnership with Diethelm Group, recently started
operations in Maldives

Kuchchaveli*
Hotel Sigiriya,
Sigiriya

Hotel
Mowbray,
Dolphin,
Kandy
Waikkal

Peace Haven,
Serendib Tangalle
Hotel,
Bentota

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Source: SLTDA *To be acquired
 Leisure: Market Statistics of Serendib Hotels

Voting Non Voting

Share Price Rs 30.80 Rs 18.70
Market Capitalization Rs 1.9Bn Rs 0.5Bn
% of Total Market 0.07% 0.02%
PER 16.0times 4.6times
PBV 1.5times 0.5times
No of Shares 60.4Mn 28.8Mn
Public Shareholding 29.66% 26.64%

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 Leisure: 10-11 Update
Turnover
6%
Key Statistics 2010/11 2009/10 Growth

Turnover (Rs. Mn) 1035 752 38%

Profit After Tax (Rs. Mn) 122 33 263%

Sector Group

• Our hotels continued to benefit from the positive outlook of the country
• Hotels recorded an average occupancy in excess 80%, for the year under review
• Dolphin Hotel was refurbished at a cost of Rs. 530Mn and reopened in October 2010
• Kani Lanka Resort and Spa was acquired by Hemas through Serendib Hotels PLC

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 Leisure: Dolphin Hotel upgraded to 4 star

• Reopened in October 2010

• Refurbishment cost - Rs. 530Mn

32
Leisure : Twin Experience of PLAY & PAUSE at Dolphin . . .

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 Leisure: Acquisition of Kani Lanka

• A 150 key luxury hotel is being developed

adjacent to the current hotel and will be
the first – ever ‘Anantara‘ branded resort
in Sri Lanka

• Hemas acquired a 19.9% stake in Kani

Lanka Resort and Spa, through its
subsidiary Serendib Hotels PLC

• Minor International PLC, our strategic

partner, acquired the remaining 80.1%

• The hotel is being managed by Serendib

Leisure Management Limited

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 Leisure: Strategic Focus

• Refurbishment and repositioning of Hotel Serendib - construction to

begin in May 2011
• Development of existing land banks, Peace Haven and Mowbray
• Strategic investments with Minor to develop the Anantara brand

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 Power: Overview

• 100MW thermal power plant: a joint

venture with a 10 year PPA expiring in
2014
• Hydro power plants with operational
capacities of 2.0MW and 2.6MW
• 2.4MW hydro power plant under
construction
• Hemas Power was listed in Sep 09, and
Energy Demand Vs Generation Requirement
raised Rs. 626Mn for new investments
in Sri Lanka
• Electricity demand to grow at a CAGR
of 8.6% over the long-term in Sri Lanka
• Long-Term Generation Plan of CEB
estimates electricity demand to
increase by 5,430MW by 2022

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 Power: Key Statistics
Share Price Rs 35.80
Market Capitalization Rs 4.5Bn
% of Total Market 0.17 %
PER 10.9 times
PBV 1.3 times
No of Shares 125Mn
Public Shareholding 24.93%

10/11 09/10 Growth

Group Turnover Rs 3.4Bn Rs 2.9Bn 19%
Group Earnings Rs 426Mn Rs 244Mn 75%
Shareholders’ Funds Rs 2.9Bn Rs 2.5Bn 17%
Capital Employed Rs 4.4Bn Rs 3.7Bn 17%
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 Power: 10-11 Update
Turnover
Key Statistics 2010/11 2009/10 Growth
19%
Turnover (Rs. Mn) 3,412 2,867 19%

Profit After Tax (Rs. Mn) 426 244 75%

Sector Group

• Heladhanavi continues to be the largest contributor to

group profits
• Hydro power contribution to sector profits grow to
45% in comparison to 25% in 09/10
• Sector finance costs show significant reduction due to
refinancing of working capital at Heladhanavi
• Hemas contributed ~ 7% to the national grid this year
• Magal Ganga set to complete in September 2011
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 Power: Strategic Focus

• Development of on-going mini-hydro projects

• Looking to enter non-conventional renewable energy space – Bio
mass & wind energy
• Explore overseas investments opportunities

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CSR: Hemas Outreach Foundation

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 CSR: Our Objectives

1. Focus on Early Childhood Care and Development (ECCD) of young

children through pre- schools

2. Training of pre-school teachers

3. Empower community led social development through island wide

parental awareness programs

4. Improve children’s recreational facilities in disadvantaged communities

5. Improve child protection legislation and provide publicity for children’s

issues

6. Sustaining the Menik Farm temporary preschools and play areas

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 CSR: Our activities this year . . .

• 33 Piyawara model pre-schools are being monitored and sustained by

Hemas Outreach Foundation

• Opened first ever model pre-school in the Northern Region in Jaffna in

January 2011

• Set up pre-schools and play areas in post war relief villages in Vavuniya

• Set up a special school for children with Down’s Syndrome in Hambantota

area - 42 children are being rehabilitated

• Conducted residential training programs for pre-school teachers

• Weekly TV programme on Nugasevana to educate young mothers on early

childhood development

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 In conclusion . . .

• All sectors in the Group are well placed to benefit from expected
economic growth
• Growth of the middle class segment to drive growth in FMCG and
Healthcare industries
• Major investments in the medium term to be in Hospitals, Hotels and
Power
• Exploring opportunities to enter new categories in the FMCG market

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 Investor Relations Contact:

Malinga Arsakularatne
Chief Financial Officer

+94 11 4731728 / +94 77 2233642

malinga@hemas.com

CONFIDENTIALITY AGREEMENT:
Any confidentiality information disclosed in this presentation shall be used by the
receiving party exclusively for the purposes of fulfilling the receiving party’s
obligation and for no other purpose except with the consent of the disclosing party.

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