CHAIRMAN S MESSAGE. Dear Stakeholder,

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3 CHAIRMAN S MESSAGE Dear Stakeholder, Group Profit Before Tax (PBT) of Rs billion for the quarter and Rs billion for the first six months of the financial year 2010/2011 reflect increases of 281 per cent and 167 per cent respectively, over the PBT of Rs. 905 million and Rs billion in the corresponding periods in the previous year. Recurring PBT, excluding the gains from the sale of stakes in Asian Hotels and Properties PLC (AHPL) and John Keells Hotels PLC (KHL), grew by 83 per cent for the quarter and 71 per cent for the first six months. The profits attributable to Equity Holders for the quarter and first six months, ended 30 September 2010, of Rs billion and Rs billion respectively, reflect an increase of 409 per cent and 221 per cent over the corresponding periods in the previous year. The revenues at Rs billion and Rs billion in the second quarter and the first half of 2010/2011 were 24 per cent and 26 per cent above the Rs billion and Rs billion recorded in the corresponding periods in the previous year. The Company PBT of Rs billion for the quarter and Rs billion for the first six months of 2010/2011 reflect an increase of 1,330 per cent and 70 per cent above the PBT of Rs. 162 million and Rs billion in the corresponding periods in the previous year. This PBT includes the gain on the sale of shares of John Keells Hotels PLC (KHL) and Asian Hotels and Properties PLC (AHPL), during the quarter. Transportation PBT of Rs billion for the first six months of 2010/11 was an increase of 18 per cent, over the first six months of 2009/10 which recorded Rs billion. The quarterly PBT decreased by 11 per cent to Rs. 556 million [2009/10 Q2: Rs. 627 million.] While SAGT performed to expectations, the Airlines and Logistics business units, in particular, performed significantly above the corresponding period in the previous year. The bunkering business, whilst maintaining market leadership, was adversely affected by volatile world oil prices during the quarter. In line with expectations, Leisure recorded a PBT of Rs. 323 million for the first six months of the financial year compared to a loss of Rs. 174 million recorded in the same period last year, despite the full and partial closure of some hotels for refurbishment and upgrades. The second quarter PBT was Rs. 337 million [2009/10 Q2: Loss Rs. 127 million]. This improvement in performance is mainly due to better results achieved by both the Sri Lankan resorts and our city hotels, Cinnamon Grand and Cinnamon Lakeside. As I had mentioned in my first quarter message, Coral Gardens has been closed for a complete refurbishment and is scheduled to be re-opened as Chaaya Tranz in Winter 2011/12. The construction of the new hotel in Beruwela Chaaya Bey is progressing as planned. The Chaaya Lagoon Hakuraa Huraa in the Maldives has been operational since September 2010 after the completion of its refurbishment. During the quarter, we exited the loss making Cinnamon Alidhoo and acquired the head lease of Chaaya Island, Dhonveli, which have and will substantially improve the profitability of the Maldivian resorts. Property recorded a PBT of Rs. 290 million for the first six months, a 175 per cent increase over the Rs. 105 million recorded in the same period last year. The PBT of Rs 145 million for the quarter was an increase of 103 per cent over the corresponding period last year [2009/10 Q2: Rs. 71 million]. The cyclical nature of the revenue recognition of the projects is the main reason for the variances from the previous year. At the end of October, we officially launched a 475 apartment development on Union Place in the heart of Colombo and market surveys indicate encouraging interest from potential buyers and expressions of interest have already been received for over 50 per cent of the units. Consumer Foods and Retail PBT of Rs. 307 million for the six months was 237 per cent higher than the Rs. 91 million recorded in the same period last year. The PBT of Rs 137 million for the quarter was an increase of 175 per cent over the second quarter last year [2009/10 Q2: Rs. 50 million]. The soft drinks, ice creams and processed meats businesses saw strong volume growth while the super market business had a significantly better quarter on the back of higher same store sales and better margins. 1

4 John Keells Holdings PLC ~ Interim financial statements Financial Services PBT for the six months ended 30 September 2010 at Rs. 685 million was 79 per cent higher than the Rs. 382 million recorded in the same period last year. The PBT of Rs. 308 million for the quarter is a 87 per cent increase over the same period last year [2009/10 Q2: Rs. 165 million]. John Keells Stock Brokers and the Group s banking associate, Nations Trust Bank were the main contributors to this increase. The contribution from Union Assurance (UA) was in line with expectations. It should be noted that profits of the life segment are recognised only at the end of our 3rd quarter, which is the end of UA s financial year. Information Technology (IT) had an improved performance for the first six months on the back of an improved performance by the Office Automation and BPO segments. IT recorded a PBT of Rs. 35 million for the first six months, compared to the loss of Rs. 35 million in the corresponding period in the previous year. The second quarter PBT of Rs. 34 million was a significant improvement over the same period last year [2009/10 Q2: Loss Rs. 3 million]. The acquisition of a number of new customers by the BPO business, which though resulting in extra costs due to relocation and associated expenditure in the next two quarters, augurs well for the future. Others comprising of Plantation Services, John Keells Capital and the Corporate Centre recorded a PBT of Rs 1.98 billion for the six month period, which is 484 per cent higher than the Rs. 339 million PBT recorded in the same period last year. The gain on the sale of shares of KHL and AHPL during the quarter, contributed towards this significant growth. The second quarter PBT was Rs billion [2009/10 Q2: Rs. 122 million]. John Keells English Language Scholarship Programme was reintroduced in 2010/11, as English for Teens. A total of 1000 scholarships are on offer to school children aged years from various Districts. The first intake with 547 registered students is currently in progress and the process for the second intake has also been initiated. The Final Step, a five-day series of soft skills workshops designed to groom university undergraduates for employment was successfully conducted at the University of Sri Jayewardenepura in August 2010 in collaboration with the Career 2 Guidance Unit of the University. The programme attracted an enthusiastic response, with an average attendance of 260 participants per session. The John Keells HIV/AIDS Awareness Campaign has educated a total of 4,323 persons in 17 sessions during the second quarter resulting in a cumulative total of 8437 persons via 36 sessions including members of the security forces and the LTTE rehabilitation centre, Thriconamadu. Plans are underway to have the HIV/AIDS Workplace Policy adopted by the various sectors of the Group by AIDS Day falling on 1st December Under the John Keells Vision Project, a total of 241 cataract operations were carried out during the second quarter. This included collaboration with the Lions Club. A total of 282 spectacles have also been donated to deserving individuals. The BPO operation at Mahavilachchiya in the Anuradhapura District is progressing well, with 16 youths engaged in transaction processing during the second quarter, supporting our Group company, InfoMate (Pvt) Ltd. This operation continues to record healthy volumes, translating to increased income levels to its shareholder - employees. InfoMate has already initiated plans for a second BPO operation at Seenigama in the Southern Province in collaboration with the Foundation for Advancing Rural Opportunities (FARO) and Foundation of Goodness. Four youths from the village are being trained for this purpose. Planning the infrastructure development, including securing the necessary approvals, is currently in progress for Mangalagama, the second village selected for development under the Villlage Adoption Program. Work on this project complements a Ceylon Cold Stores PLC (CCS) strategic business drive to develop the cashew farmers of the village towards securing a substantial part of its cashew requirements under a sustainable model with a direct benefit to the community. Susantha Ratnayake Chairman 2 November 2010

5 CONSOLIDATED BALANCE SHEET As at As at 30th September ASSETS Non-current assets Investment property 2,334,475 2,329,015 2,334,475 Intangible assets 2,476,045 2,580,566 2,556,145 Investments in subsidiaries & joint ventures 5,115 5,115 5,115 Investments in associates 15,381,980 13,249,362 14,309,186 Other investments 9,111,257 10,225,024 8,415,216 Deferred tax assets 184, , ,252 Other non-current assets 1,965,266 1,900,225 1,724,717 Property, plant & equipment Leasehold property 27,663,586 9,946,001 29,537,128 4,676,860 29,988,664 4,576,687 69,068,438 64,634,773 64,092,457 Current assets Amounts due from related parties 13,732 41,702 22,889 Short term investments 18,877,975 14,579,597 19,300,956 Cash in hand & at bank 2,689,399 1,435,134 3,013,164 Inventories Trade & other receivables 2,942,255 10,578,123 2,649,315 9,666,800 2,295,066 9,933,777 35,101,484 28,372,548 34,565,852 Total assets 104,169,922 93,007,321 98,658,309 EQUITY & LIABILITIES Equity attributable to equity holders of the parent Stated capital 23,727,638 22,640,523 23,322,400 Capital reserves 7,479,603 7,387,051 7,573,612 Revenue reserves 22,264,572 16,166,330 18,936,259 53,471,813 46,193,904 49,832,271 Minority interest 7,330,995 4,676,887 6,429,512 Total equity 60,802,808 50,870,791 56,261,783 Non-current liabilities Insurance provisions 14,588,730 12,167,275 12,945,576 Non-interest bearing borrowings 18,000 18,000 18,000 Interest bearing borrowings 9,440,735 13,921,951 10,539,450 Deferred tax liabilities 741, , ,742 Employee benefit liabilities 1,106, ,138 1,041,395 Other deferred liabilities 4,398 4,911 4,655 Other non-current liabilities 332, , ,401 26,232,210 28,098,969 25,547,219 Current liabilities parties Income tax liabilities 593, , ,292 Short term borrowings 235, , ,000 Current portion of interest bearing borrowings 4,063,687 2,565,335 4,168,976 Dividend payable ,455 Bank overdrafts 4,207,857 3,441,300 2,576,343 Trade & other payables Amounts due to related 8,028,684 6,469 7,311, ,867,078 13,163 17,134,904 14,037,561 16,849,307 Total equity & liabilities 104,169,922 93,007,321 98,658,309 Net assets per share Rs Rs Rs Note : All values are in Rupees '000s, unless otherwise stated. I certify that the financial statements comply with the requirements of the Companies Act No.7 of M.J.S. Rajakariar Group Financial Controller The Board of directors is responsible for the preparation and presentation of these financial statements. 2 November 2010 S. C. Ratnayake J. R. F. Peiris Chairman Group Finance Director 3

6 John Keells Holdings PLC ~ Interim financial statements CONSOLIDATED INCOME STATEMENT Quarter ended 30th September Six months ended 30th September Change % Change % Revenue 13,967,093 11,234, ,886,578 21,301, Cost of sales (11,317,104) (8,988,840) 26 (21,652,526) (17,069,044) 27 Gross profit 2,649,989 2,245, ,234,052 4,232, Dividend income 15,668 1,283 1,121 23,120 1,611 1,335 Other operating income 3,057, , ,111,672 2,216, Distribution expenses (580,925) (510,362) 14 (1,097,603) (942,339) 16 Administrative expenses (1,785,278) (1,837,511) (3) (3,668,472) (3,579,516) 2 Other operating expenses (382,166) (307,635) 24 (753,437) (610,900) 23 Finance expenses (218,778) (359,321) (39) (456,768) (788,184) (42) Share of results of associates 689, , ,584,315 1,334, Profit before tax 3,445, , ,976,879 1,864, Tax expense (407,166) (298,607) 36 (861,689) (565,836) 52 Profit for the period 3,038, , ,115,190 1,298, Attributable to : Equity holders of the parent 2,927, , ,937,809 1,225, Minority interest 111,000 30, ,381 72, ,038, , ,115,190 1,298, Earnings per share Rs. Rs. Rs. Rs. Basic Diluted Dividend per share Note : All values are in Rupees '000s, unless otherwise stated. Figures in brackets indicate deductions. 4

7 CONSOLIDATED CASH FLOW STATEMENT For the six months ended 30th September Note CASH FLOWS FROM OPERATING ACTIVITIES Operating profit before working capital changes A 1,192, ,093 Increase in inventories (668,473) (530,336) Increase in receivables & prepayments (390,876) (559,785) Increase in other non-current assets (273,302) (20,856) Increase / (decrease) in creditors & accruals (817,665) 818,976 Increase in insurance provision 1,643,154 1,141,661 Cash generated from operations 684,994 1,608,753 Interest received 1,451,893 1,511,399 Finance expenses paid (456,768) (788,184) Dividend received 110, ,136 Tax paid (674,045) (657,359) Gratuity paid (37,695) (42,022) Net cash flow from operating activities 1,079,325 2,492,723 CASH FLOWS FROM /(USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant & equipment (2,167,799) (591,630) Addition to intangible assets (38,656) (5,676) Addition to lease rights (320,322) - Increase in interest in subsidiaries (120) (70,113) Acquisition of quoted investments held for sale (134,326) (120,423) Proceeds from sale of property, plant & equipment 33,996 47,718 Proceeds from sale of investments held for sale - 84,632 Proceeds from sale of non-current investments 2,754,030 - Proceeds from sale of quoted investments held for sale 122,526 11,014 Proceeds from insurance claim on property, plant & equipment - 30,000 (Purchase) / disposal of other investments (net) (696,041) (1,382,943) Proceeds from/(repayment of) short term investments (net) 51,000 (68,723) Net cash flow used in investing activities (395,712) (2,066,144) CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES Proceeds from issue of shares 405, ,415 Proceeds from minority on issue of rights in subsidiaries 2, Direct cost on share issue (10,378) - Dividend paid to equity holders of parent (1,239,322) (611,353) Dividend paid to minority shareholders (230,611) (240,094) Proceeds from long term borrowings - 749,818 Repayment of long term borrowings (2,499,534) (743,262) Proceeds from / (repayment of) short term borrowings (net) 85, ,500 Net cash flow used in financing activities (3,486,703) (593,520) NET DECREASE IN CASH & CASH EQUIVALENTS (2,803,090) (166,941) CASH & CASH EQUIVALENTS AT THE BEGINNING 18,949,876 11,978,076 CASH & CASH EQUIVALENTS AT THE END 16,146,786 11,811,135 ANALYSIS OF CASH & CASH EQUIVALENTS Favourable balances Short term investments 17,665,244 13,817,301 Cash in hand & at bank 2,689,399 1,435,134 Unfavourable balances Bank overdrafts (4,207,857) (3,441,300) 16,146,786 11,811,135 Note : All values are in Rupees '000s, unless otherwise stated. Figures in brackets indicate deductions. 5

8 John Keells Holdings PLC ~ Interim financial statements CONSOLIDATED CASH FLOW STATEMENT For the six months ended 30th September A Profit before working capital changes Profit before tax 4,976,879 1,864,082 Adjustments for : Interest income (1,451,893) (1,511,399) Dividend income (23,120) (1,611) Finance expenses 456, ,184 Share of results of associates (1,584,315) (1,334,163) Depreciation of property, plant & equipment 792, ,056 Derecognition / impairment losses on property, plant & equipment and investments ,033 Profit on sale of non-current investments (1,794,379) - (Profit) / loss on sale of property, plant & equipment 51,616 (11,224) Profit on sale of other investments - (90,478) Profit on sale of investments held for sale - (9,109) Increase in market value of quoted investments held for sale (375,345) (85,274) Gain on disposal of quoted investments held for sale (88,685) (6,713) Amortisation / depreciation of leasehold property and other non-current assets 152, ,572 Amortisation of intangible assets 114, ,774 Amortisation of other deferred liabilities (257) (256) Gratuity provision and related costs 102,400 80,940 Proceeds from insurance claim on property, plant and equipment - (30,000) Unrealised (gain) / loss on foreign exchange (net) (137,525) (16,849) Negative goodwill on acquisitions - (38,472) 1,192, ,093 Note : All values are in Rupees '000s, unless otherwise stated. Figures in brackets indicate deductions. 6

9 STATEMENT OF CHANGES IN EQUITY GROUP Attributable to equity holders of parent Stated Revaluation Exchange Other General Dividend Investment Accumulated Total Minority Total capital reserve translation capital reserves reserve equalisation profit interest equity reserve reserves reserve As at 1 April ,322,400 5,727,326 1,417, ,365 3,900,775 1,572,188 75,000 13,388,296 49,832,271 6,429,512 56,261,783 Share options exercised 405, , ,238 Direct cost on share issue (8,306) (8,306) (2,072) (10,378) Currency translation differences - - (64,759) (64,759) (16,030) (80,789) Net gain / (loss) recognised directly in equity Surplus on revaluation - 120, ,537 32, ,238 Acquisitions, disposals and changes in holding , ,108 Associate company share of net assets - - (149,787) (149,787) - (149,787) Other ,683 1,683-1,683 Profit for the period ,937,809 3,937, ,381 4,115,190 Final dividend paid / (619,867) (619,867) - (619,867) Subsidiary dividend to minority shareholders ,994 16,994 (247,605) (230,611) As at 30 September ,727,638 5,847,863 1,203, ,365 3,900,775 1,572,188 75,000 16,716,709 53,471,813 7,330,995 60,802,808 As at 1 April ,525,108 5,517,736 1,493, ,765 3,870,775 1,572,188 75,000 10,026,661 45,506,455 4,960,310 50,466,765 Share options exercised 115, , ,415 Currency translation differences - - (35,891) (35,891) (2,873) (38,764) Reserved during the period , (30,000) Net gain / (loss) recognised directly in equity Acquisitions, disposals and changes in holding (11) (11) (103,579) (103,590) Associate company share of net assets - - (2,128) (2,128) - (2,128) Write off / transfers - (11,653) (11,653) (2,053) (13,706) Profit for the period ,225,932 1,225,932 72,314 1,298,246 Final dividend paid / (611,353) (611,353) - (611,353) Subsidiary dividend to minority shareholders ,138 7,138 (247,232) (240,094) As at 30 September ,640,523 5,506,083 1,455, ,765 3,900,775 1,572,188 75,000 10,618,367 46,193,904 4,676,887 50,870,791 Note : All values are in Rupees '000s, unless otherwise stated. Figures in brackets indicate deductions. 7

10 John Keells Holdings PLC ~ Interim financial statements COMPANY BALANCE SHEET As at As at 30th September ASSETS Non-current assets Property, plant & equipment 92, , ,615 Investment property 899, , ,000 Intangible assets 32,009-37,450 Investments in subsidiaries & joint ventures 21,375,794 19,780,348 21,772,182 Investments in associates 9,110,819 7,959,247 9,110,819 Other investments 79,507 1,325,432 79,507 Other non-current assets 64,401 71,807 60,079 31,653,822 30,205,401 32,070,652 Current assets Inventories Trade & other receivables 546, , ,223 Amounts due from related parties 862, , ,884 Short term investments 12,442,955 11,176,909 10,177,965 Cash in hand & at bank 3,977 28,014 82,154 13,856,355 12,178,289 11,642,004 Total assets 45,510,177 42,383,690 43,712,656 EQUITY & LIABILITIES Stated capital 23,727,638 22,640,523 23,322,400 Revenue reserves 12,053,257 7,879,158 9,345,064 Total equity 35,780,895 30,519,681 32,667,464 Non-current liabilities Interest bearing borrowings 6,157,250 9,757,493 6,840,000 Employee benefit liabilities 98,078 82,818 92,630 6,255,328 9,840,311 6,932,630 Current liabilities Trade & other payables 339, , ,426 Amounts due to related parties 78 5,591 3,001 Current portion of interest bearing borrowings 3,114,993 1,348,000 3,135,493 Dividend payable ,455 Bank overdrafts 19, ,777 11,187 3,473,954 2,023,698 4,112,562 Total equity & liabilities 45,510,177 42,383,690 43,712,656 Rs. Rs. Rs. Net assets per share Note : All values are in Rupees '000s, unless otherwise stated. I certify that the financial statements comply with the requirements of the Companies Act No.7 of M.J.S. Rajakariar Group Financial Controller The Board of directors is responsible for the preparation and presentation of these financial statements. 2 November 2010 S. C. Ratnayake J. R. F. Peiris Chairman Group Finance Director 8

11 COMPANY INCOME STATEMENT Quarter ended 30th September Six months ended 30th September Change % Change % Revenue 140, , , ,300 5 Cost of sales (65,835) (54,239) 21 (128,439) (112,223) 14 Gross profit 74,510 75,109 (1) 147, ,077 (2) Dividend income 76, ,488 (42) 1,063,547 1,840,856 (42) Other operating income 2,439, , ,680, , Administrative expenses (141,690) (161,053) (12) (288,990) (337,641) (14) Other operating expenses (9,047) (10,085) (10) (20,372) (23,233) (12) Finance expenses (126,225) (198,862) (37) (254,221) (434,986) (42) Profit before tax 2,313, ,818 1,330 3,328,060 1,962, Tax expense Profit for the period 2,313, ,818 1,330 3,328,060 1,962, Rs. Rs. Rs. Rs. Dividend per share Note : All values are in Rupees '000s, unless otherwise stated. Figures in brackets indicate deductions. 9

12 John Keells Holdings PLC ~ Interim financial statements COMPANY CASH FLOW STATEMENT For the six months ended 30th September CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 3,328,060 1,962,864 Adjustments for: Interest Income (429,205) (658,355) Dividend Income (1,063,547) (1,840,856) Finance expenses 254, ,986 Depreciation of property, plant & equipment 21,116 53,602 Amortisation of intangible assets 5,442 - Derecognition of property plant & equipment 35 - Profit on sale of non-current investments (2,172,441) - Profit on sale of property, plant & equipment (5) (81) Profit on sale of other Investments held for sale - (19,508) Profit on sale of other investments - (90,478) Gratuity provision and related costs 7,999 4,224 Unrealised (gain) / loss on foreign exchange (net) (134,582) (53,664) Operating profit before working capital changes (182,907) (207,266) (Increase) / decrease in receivables & prepayments Increase / (decrease) in creditors & accruals (5,704) (5,891) 3, Cash generated from operations (194,502) (204,131) Interest received 429, ,355 Finance expenses paid (254,221) (434,986) Dividend received 1,063,547 1,840,856 Tax paid (27,622) (42,366) Gratuity paid (2,550) (13,763) Net cash flow from operating activities 1,013,857 1,803,965 CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIES Purchase of property, plant & equipment (1,828) (1,462) Increase in interest in subsidiaries (179,677) (133,113) Proceeds from sale of property, plant & equipment 5 6,250 Proceeds from sale of non-current investments 2,748,505 30,000 Proceeds from sale of investments held for sale - 72,404 (Purchase) / disposal of other investments (net) - (398,440) Net cash flow from / (used in) investing activities 2,567,005 (424,361) CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES Proceeds from issue of shares 405, ,415 Dividend paid (1,239,322) (611,353) Repayment of long term borrowings (568,050) (100,000) Net cash flow used in financing activities (1,402,134) (595,938) NET INCREASE IN CASH & CASH EQUIVALENTS 2,178, ,666 CASH & CASH EQUIVALENTS AT THE BEGINNING 10,248,932 10,142,480 CASH & CASH EQUIVALENTS AT THE END 12,427,660 10,926,146 ANALYSIS OF CASH & CASH EQUIVALENTS Favourable balances Short term investments 12,442,955 11,176,909 Cash in hand & at bank 3,977 28,014 Unfavourable balances Bank overdrafts (19,272) (278,777) 12,427,660 10,926, Note : All values are in Rupees '000s, unless otherwise stated. Figures in brackets indicate deductions.

13 STATEMENT OF CHANGES IN EQUITY COMPANY Stated General Dividend Investment Accumulated Total Capital reserve reserve equalisation profit equity reserve As at 1 April ,322,400 2,600,000 1,519,322 75,000 5,150,742 32,667,464 Share options exercised 405, ,238 Profit for the period ,328,060 3,328,060 Final dividend paid / (619,867) (619,867) As at 30 September ,727,638 2,600,000 1,519,322 75,000 7,858,935 35,780,895 As at 1 April ,525,108 2,600,000 1,519,322 75,000 2,333,325 29,052,755 Share options exercised 115, ,415 Profit for the period ,962,864 1,962,864 Final dividend paid / (611,353) (611,353) As at 30 September ,640,523 2,600,000 1,519,322 75,000 3,684,836 30,519,681 Note : All values are in Rupees '000s, unless otherwise stated. Figures in brackets indicate deductions. 11

14 John Keells Holdings PLC ~ Interim financial statements SEGMENT INFORMATION PRIMARY SEGMENTS BUSINESS SEGMENTS 12 Transportation Leisure Property Consumer Foods Financial Information Others Group Total & Retail Services Technology For the quarter ended 30th September Total revenue 2,885,445 2,457,745 3,403,679 2,527, , ,256 4,559,576 3,950,352 1,545,983 1,277, , , , ,126 14,857,294 11,860,900 Intra segment revenue - - (412,581) (191,023) - (432) (102,883) (106,837) (47) - (3,050) (1,654) (14,461) (19,398) (533,022) (319,344) Segment revenue 2,885,445 2,457,745 2,991,098 2,336, , ,824 4,456,693 3,843,515 1,545,936 1,277, , , , ,728 14,324,272 11,541,556 Inter segment revenue (87,073) (73,081) (8,729) (2,944) (52,230) (49,021) (16,590) (18,577) (23,999) (14,984) (50,812) (39,965) (117,746) (108,832) (357,179) (307,404) Revenue 2,798,372 2,384,664 2,982,369 2,333, , ,803 4,440,103 3,824,938 1,521,937 1,262, , , , ,896 13,967,093 11,234,152 Segment results 41,611 59, ,332 (13,347) 142,085 70, ,686 82, ,714 74,463 31,414 (5,406) 73,201 10, , ,979 Eliminations 12,551 16,845 75,925 (3,443) 7,286 6, (732) 5,269 (45,952) 1,270 2,278 1,998, ,022 2,101, ,573 Finance expenses (2,130) (6,751) (64,391) (109,992) (4,560) (6,270) (22,433) (32,087) (42) 10,150 (2,108) (644) (123,114) (213,727) (218,778) (359,321) Share of results of associates 504, , , ,157 3, (20,811) - 689, ,415 Profit / (loss) before tax 556, , ,866 (126,782) 144,811 71, ,112 49, , ,818 34,163 (2,904) 1,927, ,592 3,445, ,646 Tax expense (40,117) (25,345) (50,745) 6,403 (15,356) (10,957) (87,746) (63,266) (145,862) (94,976) (18,928) (10,266) (48,412) (100,200) (407,166) (298,607) Profit / (loss) for the period 516, , ,121 (120,379) 129,455 60,273 49,366 (13,404) 162,397 69,842 15,235 (13,170) 1,879,528 21,392 3,038, ,039 Attributable to: Equity holders of the parent 508, , ,260 (110,775) 103,750 51,322 40,007 (11,966) 157,456 69,483 15,235 (13,170) 1,857,542 (4,285) 2,927, ,486 Minority interest 8,148 6,608 40,861 (9,604) 25,705 8,951 9,359 (1,438) 4, ,986 25, ,000 30, , , ,121 (120,379) 129,455 60,273 49,366 (13,404) 162,397 69,842 15,235 (13,170) 1,879,528 21,392 3,038, ,039 Purchase and construction of PPE 1 7,966 3, , , , ,058 37,134 56,944 25,026 6,282 4, ,201 3,145 1,387, ,558 Addition to IA ,343 3, ,343 3,693 Depreciation of PPE 1 25,649 26, , ,550 2,580 2,480 92,948 94,416 26,638 27,847 11,020 13,222 32,315 46, , ,217 Amortisation of IA 2 3,526 3, ,854 46,854 3,520 1,315 2, ,768 52,403 Amortisation / depreciation of LHP 3 and other NCA ,826 37, ,422 6, ,593 43,722 Gratuity provision and related costs 2,096 2,370 17,496 9, ,709 16,027 5,270 5,014 2,566 3,747 8,412 (783) 52,339 36,518 Derecognition / Impairment of PPE 1 and investments , ,033 Amortisation of other DL Note : All values are in Rupees '000s, unless otherwise stated. Figures in brackets indicate deductions. In addition to segment results, information such as finance expenses, tax expense has been allocated to segments for better presentation. 1 Property, plant & equipment, 2 Intangeble assets, 3 Leasehold property, 4 Non-current assets, 5 Deferred liabilities

15 SEGMENT INFORMATION PRIMARY SEGMENTS BUSINESS SEGMENTS Transportation Leisure Property Consumer Foods Financial Information Others Group Total & Retail Services Technology For the six months ended 30th September Total revenue 5,985,637 4,323,646 6,194,819 4,720,294 1,356, ,454 9,093,846 7,878,819 2,931,066 2,498,626 1,206, ,134 1,681,260 1,720,161 28,449,879 22,495,134 Intra segment revenue - - (624,157) (340,805) - (863) (203,663) (201,273) (93) - (6,251) (3,305) (26,718) (39,840) (860,882) (586,086) Segment revenue 5,985,637 4,323,646 5,570,662 4,379,489 1,356, ,591 8,890,183 7,677,546 2,930,973 2,498,626 1,200, ,829 1,654,542 1,680,321 27,588,997 21,909,048 Inter segment revenue (171,738) (145,277) (15,042) (5,896) (101,511)(100,560) (34,921) (30,718) (47,493) (33,132) (105,923) (74,342) (225,791) (217,657) (702,419) (607,582) Revenue 5,813,899 4,178,369 5,555,620 4,373,593 1,255, ,031 8,855,262 7,646,828 2,883,480 2,465,494 1,094, ,487 1,428,751 1,462,664 26,886,578 21,301,466 Segment results 175, , ,448 54, ,622 96, , , , ,725 (102,595) (25,581) 72,598 (2,787) 1,283, ,611 Eliminations 23,824 37, ,012 10,940 12,973 18, (4,567) 12,721 (92,479) 150,544 6,507 2,211, ,173 2,566, ,492 Finance expenses (6,328) (15,086) (148,861) (239,784) (5,927) (8,839) (42,628) (74,997) (43) 10,109 (2,536) (2,155) (250,445) (457,432) (456,768) (788,184) Share of results of associates 1,164,644 1,031, , ,672 (10,423) (13,600) (54,376) - 1,584,315 1,334,163 Profit / (loss) before tax 1,357,913 1,155, ,599 (173,962) 289, , ,516 90, , ,027 34,990 (34,829) 1,979, ,954 4,976,879 1,864,082 Tax expense (92,789) (48,116) (86,722) (1,142) (27,172) (22,824) (187,358) (114,968) (328,203) (201,327) (30,881) (15,514) (108,564) (161,945) (861,689) (565,836) Profit / (loss) for the period 1,265,124 1,107, ,877 (175,104) 262,496 82, ,158 (24,065) 357, ,700 4,109 (50,343) 1,871, ,009 4,115,190 1,298,246 Attributable to: Equity holders of the parent 1,239,015 1,091, ,479 (161,438) 216,007 71,319 92,623 (20,863) 347, ,885 4,109 (50,343) 1,830, ,209 3,937,809 1,225,932 Minority interest 26,109 16,313 27,398 (13,666) 46,489 11,254 26,535 (3,202) 10, ,611 60, ,381 72,314 1,265,124 1,107, ,877 (175,104) 262,496 82, ,158 (24,065) 357, ,700 4,109 (50,343) 1,871, ,009 4,115,190 1,298,246 Purchase and construction of PPE 1 13,479 4,009 1,491, , , ,667 94,446 95,577 46,512 12,862 8, ,752 8,096 2,167, ,630 Addition to IA ,656 5,676-38,656 5,676 Depreciation of PPE 1 53,308 52, , ,449 4,966 5, , ,704 53,190 49,722 22,695 26,362 64,480 93, , ,056 Amortisation of IA 2 7,096 7, ,708 93,708 8,124 3,832 5,445 2, , ,774 Amortisation / depreciation of LHP 3 and other NCA ,504 74, ,753 54, , ,572 Gratuity provision and related costs 4,830 4,427 36,023 21,609 1, ,490 31,607 10,417 9,217 5,334 7,844 14,726 5, ,400 80,940 Derecognition / Impairment of PPE 1 and investments , ,033 Amortisation of other DL Note : All values are in Rupees '000s, unless otherwise stated. Figures in brackets indicate deductions. In addition to segment results, information such as finance expenses, tax expense has been allocated to segments for better presentation. 1 Property, plant & equipment, 2 Intangeble assets, 3 Leasehold property, 4 Non-current assets, 5 Deferred liabilities 13

16 John Keells Holdings PLC ~ Interim financial statements NOTES TO THE FINANCIAL STATEMENTS 1 Corporate Information John Keells Holdings PLC, is a public limited company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. Ordinary shares of the company are listed on the Colombo Stock Exchange and Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange. The interim financial statements of the Group and the Company for the six months ended 30 September 2010 were authorised for issue by the Board of directors on 2 November Basis of preparation The interim financial statements of the group and of the company have been prepared on the basis of the same accounting policies and methods applied for the year ended 31 March 2010 and are in compliance with Sri Lanka Accounting Standard 35 - Interim Financial Reporting. The presentation and classification of the financial statements of the previous year have been amended, where relevant, for better presentation and to be comparable with those of the current year. 3 Share information 3.1 Public share holdings The percentage of shares held by the public as at 30 September 2010 was 73.71% (30 June %). 3.2 Directors' share holdings The number of shares held by the Board of directors are as follows: As at S C Ratnayake Chairman/CEO 3,403,909 3,403,909 A D Gunewardene Deputy Chairman 3,903,830 3,903,830 J R F Peiris 415, ,790 E F G Amerasinghe 4,136 4,136 T Das Nil Nil S Enderby Nil Nil P D Rodrigo Nil Nil S S Tiruchelvam Nil Nil 3.3 Twenty largest shareholders of the company are as follows: As at Number of Number of shares % shares % 14 1 Mr S E Captain 91,064, ,845, Janus Overseas Fund 64,902, ,902, Employees Provident Fund 30,282, ,309, Paints & General Industries Limited 20,454, ,955, J P Morgan Clearing Corp 18,658, ,560, Deutsche Bank AG London 18,434, ,991, Estate of A A N De Fonseka 14,964, ,964, Aberdeen Global Asia Pacific Equity Fund 14,885, ,885, The Emerging Markets South Asian Fund 14,586, ,415, Arisaig India Fund Limited 14,431, ,431, Janus Aspen series Overseas Portfolio Fund 13,727, ,727, Rubber Investment Trust Limited A/C no.1 10,697, ,697, Bay Pond Partners L.P 9,856, ,268, Sri Lanka Insurance Corporation Ltd-Life Fund 8,716, ,716, Sri Lanka Insurance Corporation Ltd-General Fund 7,700, ,800, Ms L A Captain 7,483, ,505, RBC Dexia Investor Services Trust S/A Edinburgh Dragon Trust PLC 7,452, ,452, Mr K Balendra 7,440, ,440, Aberdeen Global-Asian Smaller Companies Fund 7,102, ,102, Aberdeen Asia Pacific Fund 6,805, ,805,

17 3.4 Stated capital Stated capital is represented by number of shares in issue as given below: As at Ordinary shares 621,566, ,489, ,548,237 Global depository receipts 983, , , Net assets per share Net assets per share have been calculated, for all periods, based on the number of shares in issue as at 30 September Market price per share For the quarter ended 30 September Rs. Rs. Highest Lowest Last traded A final dividend of Rs per share for the financial year ended 31 March 2010 was paid on 10 June In August 2010, John Keells Holdings PLC (JKH) disposed of 11.6 million shares held in Asian Hotels and Properties PLC (AHPL), for a consideration of Rs. 2 billion. The resultant capital gain of Rs. 1.3 billion has been reflected in the consolidated income statement. 6 In September 2010, JKH disposed of 37.5 million shares held in John Keells Hotels PLC, for a consideration of Rs. 0.8 billion. The resultant capital gain of Rs. 0.5 billion has been reflected in the consolidated income statement. 7 South Asia Gateway Terminals (Private) Limited (SAGT) As a follow up to note 30.8 in the annual report of John Keells Holdings PLC (JKH) relating to SAGT, an associate of JKH, it can now be confirmed that the Board of Investment of Sri Lanka (BOI) has affirmed that SAGT has fully complied with the BOI agreement and therefore that its tax exempt status remains. 8 Contingencies, capital and other commitments There has been no significant change in the nature of the contingencies, capital and other commitments, which were disclosed in the annual report for the year ended 31 March Post balance sheet events There have been no other events subsequent to the Balance sheet date, which require disclosure in the interim financial statements. 10 All values included in these financial statements are in Rs.'000s unless othewise stated. 15

18 John Keells Holdings PLC ~ Interim financial statements NOTES 16

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