John Keells Holdings PLC · CSELK:JKH.N0000
John Keells — Q3 FY2023 Earnings Presentation
29 slides from John Keells's earnings presentation, February 2023
Slide 1: JKH Investor Presentation: Review of Q3 2022/23
JKH Investor Presentation Review of Q3 2022/23 Version 4.0
Slide 2: EBITDA: For the quarter ended 31 December
EBITDA: For the quarter ended 31 December EBITDA Q3 FY2023 Q3 FY2022 Variance Variance % (Rs. Million) Transportation* 1,499 1,396 103 7 Consumer Foods 402 1,004 (602) (60) Retail 2,320 2,275 45 2 Leisure 1,898 1,234 664 54 Property (312) 707 (1,020) (144) Financial Services 2,855 2,111 744 35 Other
Slide 3: EBITDA: For the nine months ended 31 December
EBITDA: For the nine months ended 31 December EBITDA* YTD FY2023 YTD FY2022 Variance Variance % (Rs. Million) Transportation 9,085 3,620 5,465 151 Consumer Foods 2,645 1,922 722 38 Retail 6,603 5,166 1,437 28 Leisure 4,773 539 4,233 785 Property (731) 2,511 (3,242) (129) Financial Services 4,836 3,8
Slide 4: Annual EBITDA of 2021/22 demonstrates significant growth potential
Annual EBITDA of 2021/22 demonstrates significant growth potential Recurring EBITDA 2021/22 2020/21 2019/20 2018/19* (Rs. Million) Transportation 6,141 3,610 4,375 4,598 Consumer Foods 3,485 3,318 3,366 2,864 Retail 7,549 5,523 5,108 2,988 Leisure 3,785 (3,588) 2,306 5,431 Property 7,867 (17) 641 37
Slide 5: Quarterly EBITDA movement
Quarterly EBITDA movement EBITDA 2021/22 2022/23 (Rs. Million) Q3 Q4 Q1 Q2 Q3 Transportation 1,396 2,521 4,551 3,035 1,499 Consumer Foods 1,004 1,563 1,233 1,009 402 Retail 2,275 2,384 2,319 1,963 2,320 Leisure 1,234 3,247 1,869 1,005 1,898 Property (incl. Cinnamon Life) 707 5,356 (140) (279) (312)
Slide 6: PBT: For the quarter ended 31 December
PBT: For the quarter ended 31 December Finance Costs PBT (Rs. Million) Q3 Q2 Q3 Q3 Q2 Q3 FY2023 FY2023 FY2022 FY2023 FY2023 FY2022 Transportation (197) (229) (44) 1,255 2,779 1,295 Consumer Foods (324) (210) (56) (194) 547 690 Retail (1,225) (1,137) (470) 442 102 1,650 Leisure (845) (761) (349) (524
Slide 7: Key financial indicators
Key financial indicators (Rs. Million) Q3 FY2023 Q2 FY2023 31 March 2022 Total debt excl. leases 260,006 258,077 234,701 Cash and cash equivalents 128,121 140,774 157,090 Net debt excl. leases 131,885 117,304 77,611 Net debt excl. leases/Equity (%) 34.4 30.6 23.5 Net debt/ recurring EBITDA (times) -
Slide 8: Overview of ESG initiatives
Overview of ESG initiatives • The Group’s carbon footprint per million rupees of revenue decreased by 25 per cent to 0.38 MT. • The Group’s water withdrawal per million rupees of revenue decreased by 17 per cent to 7.56 cubic meters. • Initiatives under “ONE JKH”, the Diversity, Equity, and Inclusio
Slide 9: Transportation: Port of Colombo
Transportation: Port of Colombo Capacity Enhancements Port of Colombo Volumes 900 800 700 TEU'S 000 600 500 400 300 Q3 Q4 Q1 Q2 Q3 2021/22 2022/23 SAGT SLPA CICT *SLPA includes volumes of JCT and ECT terminals 9
Slide 10: WCT-1: construction progress
WCT-1: construction progress ECT CICT WCT-1 The groundwork on the West Container Terminal (WCT-1) at the Port of Colombo is progressing well with the dredging works being rapidly completed. The contract for the quay wall construction, a significant component of the overall construction works, was aw
Slide 11: Transportation: Q3 2022/23
Transportation: Q3 2022/23 Port Business (South Asia Gateway Terminal) Q3 Earnings Update: 2021/22 2022/23 Volumes (TEUs) Q3 Q3 Q3 Q4 Q1 Q2 Q3 (Rs. mn) 2022/23 2021/22 SAGT 478,386 456,926 439,310 439,605 416,381 EBITDA 1,499 1,396 Domestic: • EBITDA was impacted as a result of a Transshipment 13:87
Slide 12: Consumer Foods: Q3 2022/23
Consumer Foods: Q3 2022/23 Q3 Earnings Update: Key performance FY2022 FY2023 Q3 Q3 indicators (%) Q3 Q4 Q1 Q2 Q3 (Rs. mn) 2022/23 2021/22 Volume growth: EBITDA 402 1,004 Frozen Confectionery 37 25 31 6 (19) • Volumes were affected on account Beverages (CSD) 37 34 56 13 (19) of the price increases un
Slide 13: Cost of sales analysis of the Beverages business
Cost of sales analysis of the Beverages business Cost of sales composition – Indexed price of raw materials Q3 FY2023 vs Q3 FY2022 66% Index: Q1 FY20 = 100 57% 350 300 41% 250 31% 200 21% 150 100 3% 50 2% 0 Raw materials and Energy costs Others Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 packaging
Slide 14: Cost of sales analysis of the Frozen Confectionery business
Cost of sales analysis of the Frozen Confectionery business Cost of sales composition – Indexed price of raw materials Q3 FY2023 vs Q3 FY2022 79% Index: Q1 FY20 = 100 78% 550 450 44% 350 31% 250 16% 18% 150 5% 3% 50 Raw materials and Energy costs Others Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 p
Slide 15: Retail: Q3 2022/23
Retail: Q3 2022/23 Supermarket business: Q3 Earnings Update: Key performance 2021/22 2022/23 Q3 Q3 indicators (%) Q3 Q4 Q1 Q2 Q3 (Rs. mn) 2022/23 2021/22 Same store sales EBITDA 2,320 2,275 9.5 18.9 54.2 73.7 40.6 growth • The Supermarket business recorded Same store footfall an increase in same sto
Slide 16: Retail: Q3 2022/23 vs Q3 2021/22
Retail: Q3 2022/23 vs Q3 2021/22 Same Store Same Store ABV Sales Footfall 26.5% 40.6% 11.1% Q3 FY22: Q3 FY22: Q3 FY22: • No pandemic related disruptions • Post-lockdown, customer footfall increased • December 2021 NCPI (YoY) – 14.0%. during the quarter. with the resumption with business activity. •
Slide 17: Arrivals to Sri Lanka showed a recovery trend prior to April 2022
Arrivals to Sri Lanka showed a recovery trend prior to April 2022 Sri Lanka - Monthly Tourist Arrivals 300 Month 2019 2020 2021 2022 2023 Jan 244,239 228,434 1,682 82,327 102,545 250 Feb 252,033 207,507 3,366 96,507 107,639 Mar 244,328 71,370 4,581 106,500 200 Apr 166,975 - 4,168 62,980 Arrivals ('0
Slide 18: Air connectivity to Sri Lanka; recovery to pre-pandemic frequencies
Air connectivity to Sri Lanka; recovery to pre-pandemic frequencies Sri Lankan Airlines Air India Emirates Frequency per week: Frequency per week: Frequency per week: 2019: 192 2019: 14 2019: 28 2023: 208 2023: 10 2023: 27 Air Asia China Eastern Singapore Airlines Frequency per week: Frequency per w
Slide 19: Maldivian arrivals: strong recovery trend post-pandemic
Maldivian arrivals: strong recovery trend post-pandemic 200 The Maldives - Monthly Tourist Arrivals 180 Month 2019 2020 2021 2022 2023 Jan 151,552 173,347 92,103 131,764 172,499 160 Feb 168,583 149,785 96,882 149,008 177,914 140 Mar 162,843 59,630 109,585 150,739 Apr 163,114 13 91,200 145,279 Arriva
Slide 20: JKH Group: Leisure occupancies
JKH Group: Leisure occupancies 100% Peak of social unrest in Sri Lanka 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 Colombo Hotels Sri Lankan Resorts Mald
Slide 21: Leisure: Q3 2022/23
Leisure: Q3 2022/23 Q3 Earnings Update: 2021/22 2022/23 Key indicators Q3 Q3 Q3 Q4 Q1 Q2 Q3 (Rs. mn) 2022/23 2021/22 Colombo Hotels EBITDA 1,898 1,234 Occupancy (%) 39 52 33 29 43 ARR (USD) 71 77 68 62 65 • The Maldivian Resorts segment continued its strong performance EBITDA Margin (%) 11 23 0 (4)
Slide 22: Property: Q3 2022/23
Property: Q3 2022/23 Cumulative sales update as at 31 December 2022: Q3 Earnings Update: Number of units sold Number of remaining units Cinnamon Life Integrated Resort: Q3 Q3 (Rs. mn) 2022/23 2021/22 The Residence at Cinnamon Life 151 80 The Suites at Cinnamon Life 115 81 EBITDA (312) 707 Total 266
Slide 23: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort Initial sketch by Sri Lankan-British Architect, Cecil Balmond The 3D rendering of “Cinnamon Life” “Cinnamon Life” under construction 23
Slide 24: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort Rendering of “Cinnamon Life” Actual construction of “Cinnamon Life” as of January 2023 24
Slide 25: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort 25
Slide 26: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort Conferencing capacity (~5,000 pax) in five venues and car park facility (2,330 slots) 800 guest room hotel, including conferencing, banqueting, 7 speciality restaurants (~1,300 pax) and entertainment facilities The hotel and conferencing space collectively entails: -
Slide 27: Growth potential - MICE market
Growth potential - MICE market • The number of outbound MICE travelers from India and China was at 2 million and 5 million (pre- pandemic). • Colombo is well poised to take advantage of the growing outbound MICE travel from India. • The ARR and Conference Package Rate is lower in Colombo than India.
Slide 28: Financial Services: Q3 2022/23
Financial Services: Q3 2022/23 Union Assurance PLC: Q3 Earnings Update: Q3 Q4 Q1 Q2 Q3 Key performance FY2022 FY2022 FY2023 FY2023 FY2023 Q3 Q3 (Rs. mn) indicators (%) (Oct-Dec (Jan-Mar (Apr-Jun (Jul-Sep (Oct-Dec 2022/23 2021/22 2021) 2022) 2022) 2022) 2022) EBITDA 1,746 803 GWP growth 17 17 13 3 3
Slide 29: THANK YOU
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 Q3 FY2023 and does not constitute an issue prospectus or a financial analysis. This Investor Presentation
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