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Investor Presentation Review of Q3 FY2022

Investor PresentationReview of Q3 FY2022 Version Investor Presentation should be read in conjunction with the JKH Annual Report 2020/21 to obtain a more comprehensive understanding of the drivers and strategies of our businesses About JKH Market cap of USD million No controlling shareholder -99% free float Net Debt : Equity ratio of * The Board comprises of two Executive Directors and five Independent Non-Executive Directors Focus on sustainability related aspects, where the Group has re-established its second round of sustainability goals for 2024/25 to further reduce energy and water usage amongst others Establishment of a Diversity, Equity, and Inclusion (DE&I) programme towards increasing the diversity of the Group s workforce2*Net Debt excludes the Right-of-Use assets due to the accounting impacts of SLFRS 16 Leases.

•JCT - Jaya Container Terminal •WCT-1 –West Container Terminal -1 •The development of the West Container Terminal-1 (WCT-1) in the Port of Colombo, as the partner of Adani Ports and Special Economic Zone Limited (APSEZ), the Build, Own and Transfer (BOT) Agreement between the Sri Lanka Ports Authority (SLPA) and the project company ...

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Transcription of Investor Presentation Review of Q3 FY2022

1 Investor PresentationReview of Q3 FY2022 Version Investor Presentation should be read in conjunction with the JKH Annual Report 2020/21 to obtain a more comprehensive understanding of the drivers and strategies of our businesses About JKH Market cap of USD million No controlling shareholder -99% free float Net Debt : Equity ratio of * The Board comprises of two Executive Directors and five Independent Non-Executive Directors Focus on sustainability related aspects, where the Group has re-established its second round of sustainability goals for 2024/25 to further reduce energy and water usage amongst others Establishment of a Diversity, Equity, and Inclusion (DE&I) programme towards increasing the diversity of the Group s workforce2*Net Debt excludes the Right-of-Use assets due to the accounting impacts of SLFRS 16 Leases.

2 The net debt-to-equity ratio including SLFRS 16 -Leases is impact on Sri Lanka and JKH; Q3 2021/22 update TheGroupwitnessedastrongrecoverymomentum duringthequarterunderreviewwiththeperfor manceofbusinessesreachingclosetopreCOVID -19levelswithbusinessactivityandconsumer trendsbeingnear normal sincetheonsetofthepandemicinearly2020. Thispositivemomentumresultedinallsectors withintheGrouprecordingastronggrowthinpr ofits. TheGroup sLeisurebusinessesrecordedasignificanttu rnaroundinperformanceonaccountoftheresum ptioninoperationsinSriLankaandthecontinu edrecoveryintheMaldives. ThepositivemomentumoftheGroup sperformanceduringthequarterislargelyona ccountoftheCOVID-19pandemicbeingwellcont ainedinSriLanka,primarilyasaresultofthes uccessfulvaccinationdrivewherealmostthee ntiretyoftheadultpopulationisfullyvaccin ated.

3 Whilstnewvariantshaveemergedglobally,the riskofanoutbreakofseriouscasesisexpected tobecontainedgiventhehighvaccinationrate s, EBITDA : for the year ended 31 March 2021 Total EBITDA*15,609 20,188 (23)Recurring EBITDA**15,57220,069(22)Recurring EBITDA excluding Leisure**19,16017,7638*EBITDA includesinterestincome,fairvaluegainsand lossesoninvestmentpropertyandshareofresu ltsofequityaccountedinvesteeswhichisbase dontheshareofprofitaftertaxbutexcludesex changegainsorlossesonitsforeigncurrencyd enominateddebtandcash.**Fairvaluegainsan dlossesoninvestmentproperty(IP)havebeene xcludedforallbusinesses,withtheexception ofProperty.** GroupFY2021(Rs. Million)FY2020(Rs. Million)YoY Growth (%)Transportation 3,610 4,375 (17)Consumer Foods 3,321 3,408 (3)Retail5,523 5,108 8 Leisure (3,572)2,327 (253)Property(17)641 (103)Financial Services3,645 2,988 22 Other, incl.

4 IT and Plantation Services 3,100 1,340 131 EBITDA: for the quarter ended 31 December 20215 Industry GroupQ3 FY2022 (Rs. Million)Q3 FY2021 (Rs. Million)YoY Growth (%)Transportation 1,396 93050 Consumer Foods 1,004 60566 Retail2,275 1,69634 Leisure1,234(1,008)222 Property707 145,037 Financial Services2,111 1,22972 Total EBITDA9,5304,214126 Whilstthequarterunderreviewwasanear normal quarterwithminimalCOVID-19relatedrestric tionsanddisruptions,theperformanceofthec orrespondingquarterofthepreviousyearwitn essedanimpactonaccountoftheoutbreakofaCO VID-19clusterinearlyOctober2020, : for nine months ended 31 December 20216 Industry GroupYTD FY2022 (Rs. Million)YTD FY2021 (Rs.)

5 Million)YoY Growth (%)Transportation 3,6202,25461 Consumer Foods 1,9222,045(6)Retail5,1663,57145 Leisure539(3,656)115 Property2,511(27)9,235 Financial Services3,8622,41860 Total EBITDA20,7008,332148 Portfolio evaluation 2020/21; returns vs. effective capital deployed Industry groupEffective capital employed (%)Cinnamon Life34 Leisure19 Property (Excluding Cinnamon Life)9 Transportation6 Financial Services5 Retail6 Consumer Foods2 Plantations1 Information Technology1 Inaddition,theHoldingCompanyaccountsfor1 9percentofeffectivecapitalemployedwhichc onsistsprimarilyofcash, Group is now poised to reap the benefits from the Cinnamon Life project, given the revenue and profit recognition in lieu of the commencement of the handover of the residential units and commercial office spaces7 Transportation -overview Port of Colombo: 42% stake in SAGT (capacity: ~2 million TEUs) Development of the West container terminal -1 (capacity.

6 ~ million TEUs) One of the 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 KLM Royal Dutch airlines and Gulf Air Other operations include warehousing, supply chain management8 KARACHIGWADARBAHLMUMBAICHENNAIVISHAKHAPA TNAMKOLKATACHITTAGONGYANGONMOMBASALAMUDA R-ES-SALAMCAPE TOWNPORT LOUISADENKOCHIThe strategic location of the Port of Colombo linking key shipping routes 9 Capacity enhancements in the Port of Colombo CICT -Colombo International container terminal ECT -East container terminal SAGT -South Asia Gateway terminal JCT -Jaya container terminal WCT-1 West container terminal -1 The development of the West container terminal -1 (WCT-1) in the Port of Colombo, as the partner of Adani Ports and Special Economic Zone limited (APSEZ), the Build, Own and Transfer (BOT) Agreement between the Sri Lanka Ports Authority (SLPA)

7 And the project company, Colombo West International container terminal (Private) limited (CWIT), was executed for a lease period of 35 years. WCT-1 is currently in the final stages of fulfilling the conditions precedent in the BOT agreement, and the handover of the site for the commencement of construction is expected to take place by 4Q 2021/22. 10 WCT -1 Sustained volume growth in the Port of Colombo11*The impact from COVID-19 at the PoC was more pronounced during the first quarter of 2020/21, when the pandemic escalated in SriLanka and the region. However, the rate of recovery in volumes thereafter was encouraging, reaching near pre COVID-19 levels by the end of the year. *2021 Million TEUsPortContainerhandling capacity (TEUs)Colombo8 millionHong Kong21 millionSingapore40 millionShanghai36 million Sources: Government websites/ Sri Lanka Ports AuthorityRapid absorption of capacity in the Port of Colombo123Q FY22 earnings update: Transportation industry group The increase in profitability is primarily attributable to the performance of the Group s Ports business, SAGT and the Bunkering business, LMS.

8 The profitability at SAGT recorded an increase as a result of an improved volumes and higher revenue from ancillary operations, despite the marginal shift in the throughput mix on account of the continuing import restrictions in place in the country. LMS recorded an increase in profitability driven by an increase in margins.(Rs. mn)Q3 2021/22Q3 2020/21 EBITDA1,396930 Volumes (TEU)2020/212021/22% YoY ChangeQ3Q4Q1Q2Q3 SAGT439,171466,700462,057433,535478,3869 SLPA*484,800520,644567,505554,946555,010 14 CICT740,970762,172796,523805,565848,0531 4 Total1,664,9411,749,5161,826,0851,794,04 51,881,44813 Volumes (TEU)2020/212021/22Q3Q4Q1Q2Q3 Domestic: Transshipment volume mix14:8616:8416:8413:8713:87*Includes volumes of JCT and ECT terminals300400500600700800900Q3Q4Q1Q2Q3 2020/212021/22 Port of Colombo -volumes ('000 TEUs)SAGTSLPACICTO pportunities for growth in the Bunkering businesses Bunkering Business (Lanka Marine Services)Port of Hambantota LMS was the first to enter into a short-term fuel contract with Sinopec Fuels of Lanka (SFOL) for the saleand purchase of 20,000 MT of cargo imported by SFOL.

9 Strong opportunities for private bunkering service providers with infrastructure in place for inland storage of petrochemicals and a pipeline to the Port. The Port will occupy an area of 1,815 hectares and have a capacity to accommodate 33 vessels at a time. Positioned within 10 nautical miles of the world s busiest shipping lanes in which 200 to 300 ships sail through on a daily Business (John Keells Logistics) Total warehouse space under management during the quarter under Review was approx. 336,500 at a capacity utilisation of 92 per cent. 13 LMS2020/212021/22Q3Q4Q1Q2Q3 YoY volume growth (%)(19)(10)116(6)Consumer Foods -overview Market leader in soft drinks, ice creams and processed meats Custodians of the consumer brands Elephant House , Keells -Krest : high brand equityKeyperformance indicators (%)FY2017FY2018FY2019FY2020FY2021*Growth of Frozen Confectionery volumes 11(4)103(1)Growth of Beverage volumes (CSD)10(16)(25)7(14)Growth of Convenience Foods volumes (4)37(0)(6)EBITDA margin 2720182020143Q FY22 earnings update: Consumer Foods industry group The Consumer Foods industry group witnessed a strong recovery momentum as all three segments saw strong growth in profitability driven by the significant operating leverage.

10 The businesses undertook price increases in selective SKUs to mitigate the impact of increasing raw material prices, the pressure on product margins is likely to continue over the next few quarters although any such impact could be off-set going forward by the significant operating leverage on account of higher volumes. The volumes of the Beverages and Frozen Confectionery businesses reached pre-pandemic levels during the quarter, particularly driven by the seasonal sales in December 2021. (Rs. mn)Q3 2021/22Q3 2020/21 EBITDA1,004605 Key performance indicators (%)FY2021FY2022Q3Q4Q1Q2Q3 Growth of Frozen Confectionery volumes (11)3025(12)37 Growth of Beverage volumes (CSD)(13)118(14)37 Growth of Convenience Foods volumes(13)2230022 EBITDA (Rs.)