Keeping our eye on the next level

Transcription

1 Keeping our eye on the next level INTERIM CONDENSED FINANCIAL STATEMENTS THREE MONTHS ENDED 30TH JUNE 2013 JOHN KEELLS HOLDINGS PLC

2 Keeping our eye on the next level Chairman s Message 1 Consolidated Income Statement 3 Consolidated Statement of Comprehensive Income 4 Consolidated Statement of Financial Position 5 Consolidated Statement of Cash Flow 6 Consolidated Statement of Changes in Equity 8 Company Income Statement 9 Company Statement of Comprehensive Income 10 Company Statement of Financial Position 11 Company Statement of Cash Flow 12 Company Statement of Changes in Equity 13 Operating Segment Information 14 Notes to the Interim Condensed Financial Statements 16

3 Chairman s Message Financial Information CHAIRMAN S MESSAGE Dear Stakeholder, The profit attributed to the equity holders for the first quarter of the financial year 2013/14 at Rs.1.59 billion reflects a 4 per cent decrease over the corresponding period in the previous financial year. The Group profit before tax (PBT) for the first quarter of the financial year 2013/14 at Rs.2.20 billion was a decrease of 8 per cent over the PBT of Rs.2.40 billion recorded in the corresponding period in the previous financial year. The revenue for the first quarter of the financial year 2013/14 of Rs billion remained in line with the revenue recorded during the same period last year. The results of the first quarter of the financial year are a reflection of current macroeconomic challenges emanating from the decisive actions taken by the Government, including the implementation of cost based electricity pricing, over the past year to stabilise an over-heated economy and reduce the budget deficit. Whilst these macroeconomic factors may have a negative impact on the performance of the Group in the short term, we believe that your Group is well positioned to capitalise on the emerging growth opportunities because of its strong fundamentals and we, therefore, remain optimistic of the future. Single digit inflation, lower interest rates and the planned mega infrastructure developments are expected to translate into increased demand which will contribute positively to economic growth. Taking this view of the future, your Company has announced an integrated resort development, subject to the Project Company, Waterfront Properties (Private) Limited, receiving all the requisite approvals and your Company receiving shareholder approval, where necessary. The Project Company has entered into an agreement with the Board of Investment of Sri Lanka (BOI) as a precursor to facilitating the requisite approvals. Subsequent to the signing of the BOI agreement, the first Gazette as per the Strategic Development Projects Act was published by the Government on the 18th of July. The Waterfront Project is an integrated resort located at Glennie Street/Justice Akbar Mawatha and consists of multiple businesses including a luxury hotel, convention center, entertainment and gaming facilities, international standard shopping mall, luxury condominiums, serviced apartments and office space. The concept of integrated resorts has gained popularity, particularly in the South East Asian region. Sri Lanka s proximity to these destinations and to key source markets strengthens its offering as an exciting, and emerging, leisure destination in South Asia. Transportation The Transportation industry group PBT of Rs.748 million in the first quarter of 2013/14 was a decrease of 22 per cent compared to the first quarter of the previous financial year [2012/13 Q1: Rs.957 million]. The decline in PBT was mainly on account of a lower contribution from the bunkering business as a result of lower volumes and reduced margins, a phenomenon experienced by the industry globally, whilst the ports, logistics and airline businesses also saw reductions on the back of changes in volumes and revenues. With the completion and commencement of operations of the South Terminal, the capacity constraints in the Port of Colombo will be overcome and the Port will be well geared to cater to increased domestic and transshipment volumes. Leisure The Leisure industry group PBT of Rs.461 million in the first quarter of 2013/14 was a decrease of 29 per cent over the first quarter of the previous financial year [2012/13 Q1: Rs.648 million], primarily as a result of the lower than expected performance of Sri Lanka Resorts with the new resort, Cinnamon Bey, in particular, still being established in the market. Additionally, there was an impact on lower interest rate bearing foreign currency denominated loans as a result of a depreciated Sri Lankan Rupee at the end of the quarter. Whilst overall tourism arrivals to the country continue to demonstrate growth, they have not translated into room nights in the star category hotels. This, we believe, is the result of a combination of the economic issues in Europe and the lack of a focused destination marketing and branding strategy. However, occupancy continued to be strong in the City Hotels where we increased our market share, while the Maldivian Resorts sector performed well benefitting from higher average room rates and increased occupancies. Property The Property industry group PBT of Rs.142 million in the first quarter of 2013/14 was an increase of 120 per cent compared to the corresponding period in the previous financial year [2012/13 Q1: Rs.65 million], mainly on account of the revenue recognition cycle of the OnThree20 development. The super-structure of the 37 storeyed towers of OnThree20 was completed during the quarter under review while the total number of apartments sold is in excess of 80 per cent. Construction of the Group s newest residential apartment development, 7th Sense on Gregory s Road, commenced during the quarter with over 50 per cent of the units sold as of-date. Consumer Foods and Retail The Consumer Foods and Retail industry group PBT of Rs.249 million in the first quarter of 2013/14 was a decrease of 36 per cent over the first quarter of the previous financial year [2012/13 Q1: Rs.393 million]. Interim Financial Statements l 1

4 PROGRESSIVE CHAIRMAN S MESSAGE Whilst the soft drinks segment maintained its market share, consumer demand was impacted by the adverse weather conditions which prevailed in many parts of the country and the lower discretionary expenditure. Although the ice cream business lost volume due to the aforesaid reasons, it increased its market share through enhanced distribution. Keells Food Products consolidated its production by utilising the increased capacity in the new plant in Pannala. The Retail sector completed the roll out of its way forward strategy in its remaining retail outlets. Most of the outlets have witnessed growth during the quarter under review. Financial Services The Financial Services industry group PBT of Rs.259 million in the first quarter of 2013/14 was marginally higher compared to the corresponding period last year [2012/13 Q1: Rs.257 million]. The prevailing macro-economic conditions resulted in modest loan growth across the banking industry. The performance of the Bank in the first quarter was impacted by the planned non-recurring costs associated with the development of its positioning strategy which will be spread throughout this financial year. The profitability of the Insurance business was impacted by higher claim ratios in the non-life business compared to the previous year. The Stock Broking business increased its market share, although overall trading activity at the Colombo Stock Exchange was relatively low. Information Technology The Information Technology industry group PBT of Rs.65 million in the first quarter of 2013/14 was an increase over the corresponding period in the previous financial year [2012/13 Q1: Rs.6 million]. The improvement in performance was driven primarily by the Business Process Outsourcing (BPO) business on account of the expansion of its client base. The Office Automation business witnessed growth as it continued to expand its range of products. Other, including Plantation Services Other, comprising of Plantation Services and the Corporate Centre, recorded a PBT of Rs.275 million in the first quarter of 2013/14 [2012/13 Q1: Rs.72 million]. The performance was primarily attributed to an increase in net interest income and a decrease in exchange losses compared to the previous year. Sustainability Initiatives During the quarter, the Group took further steps in integrating sustainability within its business goals by broadening the scope of impact assessment in the areas of indirect energy consumption and other greenhouse gas emissions. The Group continues to track key indicators covering carbon footprint, water usage, waste management, employee health & safety and staff training. The Group s overall carbon footprint at an estimated 18,657 MT is an increase of 8 per cent [2012/13 Q1: 17,234 MT], while the Group s water consumption at an estimated 414,934 cubic meters is an increase of 4 per cent [2012/13 Q1: 399,197 cubic meters] over the corresponding period last year, largely as a result of the expanded reporting scope. The number of occupational injuries in the Group during the first quarter increased to 63 [2012/13 Q1: 45]. The number of hours of training provided to staff was at approximately 12 hours per employee [2012/13 Q1: 9 hours]. Corporate Social Responsibility Out of 1,012 John Keells scholars of 2012/13, who became eligible to sit for the final examination under the John Keells English Language Scholarship Programme, a total of 996 children passed the final examination. The John Keells Foundation successfully coordinated a comprehensive industrial tour of the John Keells Group for a group of 94 undergraduates (and 04 faculty members) of the Faculty of Management Studies and Commerce of the University of Jaffna in June The tour was aimed at creating greater awareness of potential career opportunities. Under the John Keells HIV and AIDS Awareness Campaign, a total of 1,005 persons were educated via 14 sessions during the quarter, including corporate staff and members of the Sri Lanka Army. Under the John Keells Vision Project one eye camp was held in the first Quarter at the Navy Camp in Delft Island. Out of a total of 500 patients registered, 70 cataract patients were identified of whom 56 were operated. A total of 278 spectacles were also donated. Under the Village Adoption Programme, initial activities benefiting different community segments are underway in certain villages of the Mullaitivu District and Trincomalee District in the Northern and Eastern provinces of the country. Susantha Ratnayake Chairman 26 July l JOHN KEELLS HOLDINGS PLC l

5 Chairman s Message Financial Information CONSOLIDATED INCOME STATEMENT For the three months ended 30th June Note Change % Continuing operations Sale of goods 11,321,732 11,673,741 (3) Rendering of services 8,690,308 8,339,141 4 Revenue 20,012,040 20,012,882 - Cost of sales (14,955,754) (14,887,228) - Gross profit 5,056,286 5,125,654 (1) Other operating income 340, ,508 (17) Distribution expenses (837,758) (735,308) 14 Administrative expenses (2,354,227) (2,467,344) (5) Other operating expenses (733,646) (611,430) 20 Results from operating activities 1,470,877 1,720,080 (14) Finance cost (369,311) (465,485) (21) Finance income 1,322, , Net finance income 953, , Change in insurance contract liabilities 6 (926,371) (581,827) 59 Share of results of equity accounted investees 701, ,917 (12) Profit before tax 2,199,722 2,396,585 (8) Tax expense 7 (454,473) (540,025) (16) Profit for the period 1,745,249 1,856,560 (6) Attributable to : Equity holders of the parent 1,586,397 1,658,718 (4) Non-controlling interest 158, ,842 (20) 1,745,249 1,856,560 (6) Earnings per share Rs. Rs. Basic Diluted Dividend per share Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. Interim Financial Statements l 3

6 PROGRESSIVE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the three months ended 30th June Note Profit for the period 1,745,249 1,856,560 Other comprehensive income Currency translation of foreign operations 255, ,110 Revaluation of land and buildings (1,865) - Share of other comprehensive income of equity-accounted investees 194, ,106 Net (loss) / gain on available-for-sale financial assets 38,457 (371,558) Tax on other comprehensive income Other comprehensive income for the period, net of tax 487, ,658 Total comprehensive income for the period, net of tax 2,232,389 2,081,218 Attributable to : Equity holders of the parent 2,029,704 1,827,700 Non-controlling interest 202, ,518 2,232,389 2,081,218 Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. 4 l JOHN KEELLS HOLDINGS PLC l

7 Chairman s Message Financial Information CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at ASSETS Non-current assets Property, plant and equipment 49,190,178 49,272,979 Lease rentals paid in advance 9,585,723 9,513,671 Investment property 9,316,821 9,294,936 Intangible assets 2,649,908 2,689,514 Investments in associates 16,531,774 15,724,361 Other non current financial assets 17,546,051 18,816,693 Deferred tax assets 241, ,227 Other non current assets 4,252,195 3,575, ,313, ,100,130 Current assets Inventories 4,083,492 3,998,900 Trade and other receivables 11,851,030 12,775,046 Amounts due from related parties 75, ,455 Other current assets 3,502,770 2,895,900 Short term investments 30,256,682 26,586,054 Cash in hand and at bank 4,046,762 3,554,804 53,816,179 50,018,159 Total assets 163,130, ,118,289 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Stated capital 26,555,676 26,480,396 Capital reserves - - Revenue reserves 43,052,129 42,704,203 Other components of equity 21,077,878 20,634,571 90,685,683 89,819,170 Non-controlling interest 11,073,976 11,366,240 Total equity 101,759, ,185,410 Non-current liabilities Insurance contract liabilities 18,265,774 17,388,494 Borrowings 12,347,253 11,857,764 Deferred tax liabilities 1,242,864 1,222,210 Employee benefit liabilities 1,422,831 1,385,072 Other deferred liabilities 61,044 50,228 Other non-current liabilities 533, ,075 33,872,832 32,433,843 Current liabilities Trade and other payables 13,767,823 14,608,263 Amounts due to related parties 8,521 15,280 Income tax payable 1,096, ,013 Short term borrowings 2,518,313 1,853,767 Current portion of borrowings 2,928,429 3,048,936 Other current liabilities 1,897,720 1,635,534 Bank overdrafts 5,280,443 3,356,243 27,497,545 25,499,036 Total equity and liabilities 163,130, ,118,289 Rs. Rs. Net assets per share Note : All values are in Rupees 000s, unless otherwise stated. The above figures are not audited. 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. S C Ratnayake Chairman 26 July 2013 J R F Peiris Group Finance Director Interim Financial Statements l 5

8 PROGRESSIVE CONSOLIDATED STATEMENT OF CASH FLOW For the three months ended 30th June Note CASH FLOWS FROM OPERATING ACTIVITIES Profit before working capital changes A 1,558,928 2,315,541 (Increase) / Decrease in inventories (84,592) 1,347,793 (Increase) / Decrease in trade and other receivables 1,132, ,737 (Increase) / Decrease in other current assets 313, ,688 (Increase) / Decrease in other non-current assets (676,446) (662,910) Increase / (Decrease) in trade and other payables (844,208) (471,994) Increase / (Decrease) in other current liabilities 255,802 14,136 Increase / (Decrease) in insurance contract liabilities 877, ,136 Cash generated from operations 2,532,432 3,809,127 Finance income received 1,241, ,957 Finance costs paid (361,788) (232,643) Dividend received - 131,189 Tax paid (1,184,895) (299,624) Gratuity paid (33,540) (14,681) Net cash flow from operating activities 2,194,203 4,318,325 CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (492,891) (1,057,500) Purchase of intangible assets (19,672) (3,238) Addition to investment property (21,885) (98,872) Acquisition of associates - (28,390) Proceeds from sale of property, plant and equipment and intangible assets 6,351 12,841 Proceeds from sale of financial instruments - fair valued through profit or loss 180,760 52,590 Purchase of financial instruments - fair valued through profit or loss (160,249) (84,461) (Purchase) / disposal of short term investments (net) (85,668) (1,209,570) (Purchase) / disposal of other non current financial assets (net) 1,309, ,367 Net cash flow from / (used in) investing activities 715,845 (1,723,233) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES Proceeds from issue of shares 75, ,579 Direct cost on issue of shares (707) - Acquisition of non-controlling interest - (516) Dividend paid to equity holders of parent (1,286,460) (1,275,977) Dividend paid to shareholders with non-controlling interest (446,253) (624,516) Proceeds from long term borrowings 1,447, ,898 Repayment of long term borrowings (1,271,362) (875,654) Proceeds from/(repayment of) other financial liabilities (net) 664,546 (929,057) Net cash flow from / (used in) financing activities (817,782) (2,790,243) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 2,092,266 (195,151) CASH AND CASH EQUIVALENTS AT THE BEGINNING 16,860,241 21,518,594 CASH AND CASH EQUIVALENTS AT THE END 18,952,507 21,323,443 ANALYSIS OF CASH AND CASH EQUIVALENTS Favorable balances Short term investments 20,186,188 20,932,609 Cash in hand and at bank 4,046,762 3,095,993 Unfavorable balances Bank overdrafts (5,280,443) (2,705,159) Total cash and cash equivalents 18,952,507 21,323,443 Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. 6 l JOHN KEELLS HOLDINGS PLC l

9 Chairman s Message Financial Information For the three months ended 30th June A Profit before working capital changes Profit before tax 2,199,722 2,396,585 Adjustments for: Finance income (1,322,957) (930,900) Finance cost 369, ,485 Share of results of equity accounted investees (701,570) (792,917) Profit on sale of non-current investments 11,461 - Depreciation of property, plant and equipment 611, ,092 Provision for impairment losses - 99,769 (Profit) / loss on sale of property, plant and equipment and intangible assets 11,600 (11,233) Amortisation of lease rentals paid in advance 165, ,826 Amortisation of intangible assets 61,946 62,293 Amortisation of other deferred liabilities (129) (128) Gratuity provision and related costs 72,032 56,609 Unrealised (gain) / loss on foreign exchange (net) 80, ,060 1,558,928 2,315,541 Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. Interim Financial Statements l 7

10 PROGRESSIVE CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to equity holders of parent Stated Revaluation Foreign currency Other Available for Revenue Total Non-controlling Total capital reserve translation capital sale reserve reserves interest Equity reserve reserves As at 1 April ,480,396 17,780,432 2,729, ,282 42,704,203 89,819,170 11,366, ,185,410 Profit for the period ,586,397 1,586, ,852 1,745,249 Other comprehensive income - (1,865) 406,409-38, ,307 43, ,140 Total comprehensive income - (1,865) 406,409-38,763 1,586,397 2,029, ,685 2,232,389 Exercise of share options 75, ,280-75,280 Direct cost on issue of shares (707) (707) - (707) Final dividend paid / (1,286,460) (1,286,460) - (1,286,460) Subsidiary dividend to non-controlling interest ,696 48,696 (494,949) (446,253) As at 30 June ,555,676 17,778,567 3,136, ,045 43,052,129 90,685,683 11,073, ,759,659 As at 1 April ,110,528 9,487,794 2,987, , ,987 33,092,550 71,429,700 8,884,252 80,313,952 Profit for the period ,658,718 1,658, ,842 1,856,560 Other comprehensive income ,788 - (368,806) - 168,982 55, ,658 Total comprehensive income ,788 - (368,806) 1,658,718 1,827, ,518 2,081,218 Exercise of share options 721, , ,579 Final dividend paid / (1,275,977) (1,275,977) - (1,275,977) Subsidiary dividend to non-controlling interest ,151 48,151 (672,667) (624,516) Acquisition, disposal and changes in non-controlling interest (1,355) (516) As at 30 June ,832,107 9,487,794 3,525, ,365 (45,819) 33,524,281 72,751,992 8,463,748 81,215,740 Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. 8 l JOHN KEELLS HOLDINGS PLC l

11 Chairman s Message Financial Information COMPANY INCOME STATEMENT For the three months ended 30th June Note Change % Continuing operations Rendering of services 181, , Revenue 181, , Cost of sales (99,008) (85,378) 16 Gross profit 82,679 49, Dividend income 2,191,598 2,360,046 (7) Other operating income 2,350 4,928 (52) Administrative expenses (295,253) (292,176) 1 Other operating expenses (9,574) (9,092) 5 Results from operating activities 1,971,800 2,113,233 (7) Finance cost (90,959) (151,937) (40) Finance income 384, , Net finance income 293, , Profit before tax 2,265,563 2,243,028 1 Tax expense 7 (32,532) (4,752) 585 Profit for the period 2,233,031 2,238,276 - Rs. Rs. Dividend per share Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. Interim Financial Statements l 9

12 PROGRESSIVE COMPANY STATEMENT OF COMPREHENSIVE INCOME For the three months ended 30th June Note Profit for the period 2,233,031 2,238,276 Other comprehensive income Net (loss)/gain on available-for-sale financial assets 43,481 (314,681) Tax on other comprehensive income Other comprehensive income for the period, net of tax 43,481 (314,681) Total comprehensive income for the period, net of tax 2,276,512 1,923,595 Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. 10 l JOHN KEELLS HOLDINGS PLC l

13 Chairman s Message Financial Information COMPANY STATEMENT OF FINANCIAL POSITION As at ASSETS Non-current assets Property, plant and equipment 70,038 75,309 Intangible assets 82,143 74,004 Investments in subsidiaries and joint ventures 26,522,694 26,641,307 Investments in associates 9,821,364 9,821,364 Other non current financial assets 1,774,566 1,710,653 Other non current assets 10,310 10,310 38,281,115 38,332,947 Current assets Trade and other receivables 1,057, ,862 Amounts due from related parties 557, ,084 Other current assets 388, ,966 Short term investments 13,624,488 12,551,540 Cash in hand and at bank 586,128 63,159 16,212,977 14,512,611 Total assets 54,494,092 52,845,558 EQUITY AND LIABILITIES Stated capital 26,555,676 26,480,396 Revenue reserves 21,168,327 20,221,756 Other components of equity 126,938 83,457 Total equity 47,850,941 46,785,609 Non-current liabilities Borrowings 3,212,279 3,752,621 Employee benefit liabilities 137, ,075 3,350,032 3,886,696 Current liabilities Trade and other payables 241, ,990 Amounts due to related parties 12,679 13,156 Current portion of borrowings 1,308,636 1,314,424 Other current liabilities 8, ,478 Bank overdrafts 1,722, ,205 3,293,119 2,173,253 Total equity and liabilities 54,494,092 52,845,558 Rs. Rs. Net assets per share Note : All values are in Rupees 000s, unless otherwise stated. The above figures are not audited. 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. S C Ratnayake Chairman J R F Peiris Group Finance Director 26 July 2013 Interim Financial Statements l 11

14 PROGRESSIVE COMPANY STATEMENT OF CASH FLOW For the three months ended 30th June CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 2,265,563 2,243,028 Finance income (384,722) (281,732) Dividend income (2,191,598) (2,360,046) Finance cost 90, ,937 Depreciation of property, plant and equipment 6,041 6,520 Profit on sale of property, plant and equipment (4) (2,696) Amortisation of intangible assets 5,961 4,376 Provision for impairment losses 118,613 99,769 Gratuity provision and related costs 6,198 5,686 Profit before working capital changes (82,989) (133,158) (Increase) / Decrease in trade and other receivables (36,885) 559,119 (Increase) / Decrease in other current assets (2,165) (85,377) Increase / (Decrease) in trade and other payables 10,747 (43,993) Increase / (Decrease) in other current liabilities (97,376) (2,127) Cash generated from operations (208,668) 294,464 Finance income received 384, ,981 Finance expenses paid (87,552) (64,430) Dividend received 2,218,061 2,369,445 Tax paid (33,461) (12,946) Gratuity paid (2,519) (2,518) Net cash flow from operating activities 2,270,583 2,839,996 CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (769) (804) Purchase of intangible assets (14,099) - Increase in interest in subsidiaries - (15,526) Increase in interest in associates - (28,389) Proceeds from sale of property, plant and equipment 4 6,696 (Purchase)/disposal of short term investments (net) 4,469,699 (1,510,948) (Purchase)/disposal of other non current financial assets (net) (20,431) 3,946 Net cash flow from/(used in) investing activities 4,434,404 (1,545,025) CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES Proceeds from issue of shares 75, ,579 Dividend paid (1,286,460) (1,275,977) Repayment of long term borrowings (640,475) (664,176) Net cash flow from / (used in) financing activities (1,851,655) (1,218,574) NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS 4,853,332 76,397 CASH AND CASH EQUIVALENTS AT THE BEGINNING 5,433,342 8,919,099 CASH AND CASH EQUIVALENTS AT THE END 10,286,674 8,995,496 ANALYSIS OF CASH & CASH EQUIVALENTS Favorable balances Short term investments 11,423,035 8,983,135 Cash in hand and at bank 586,128 61,594 12,009,163 9,044,729 Unfavorable balances Bank overdrafts (1,722,489) (49,233) Total cash and cash equivalents 10,286,674 8,995,496 Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. 12 l JOHN KEELLS HOLDINGS PLC l

15 Chairman s Message Financial Information COMPANY STATEMENT OF CHANGES IN EQUITY Stated Available for Revenue Total capital sale reserve reserves Equity As at 1 April ,480,396 83,457 20,221,756 46,785,609 Profit for the period - - 2,233,031 2,233,031 Other comprehensive income - 43,481-43,481 Total comprehensive income - 43,481 2,233,031 2,276,512 Exercise of share option 75, ,280 Final dividend paid / (1,286,460) (1,286,460) As at 30 June ,555, ,938 21,168,327 47,850,941 As at 1 April ,110, ,595 15,754,217 41,094,340 Profit for the period - - 2,238,276 2,238,276 Other comprehensive income - (314,681) - (314,681) Total comprehensive income - (314,681) 2,238,276 1,923,595 Exercise of share option 721, ,579 Final dividend paid / (1,275,977) (1,275,977) As at 30 June ,832,107 (85,086) 16,716,516 42,463,537 Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. Interim Financial Statements l 13

16 PROGRESSIVE OPERATING SEGMENT INFORMATION BUSINESS SEGMENTS The following tables present revenue, profit information and segment assets regarding the Group s operating segments. Transportation Leisure Property Consumer Foods & Retail For the three months ended 30th June External revenue 4,128,503 5,307,450 4,116,630 3,912, , ,541 6,154,518 5,986,843 Inter segment revenue 102,988 92,194 35,438 11,649 79,234 68,528 91,660 14,997 Total Segment revenue 4,231,491 5,399,644 4,152,068 3,924, , ,069 6,246,178 6,001,840 Eliminations of inter segment revenue Net Revenue Segment result 229, , , , ,376 30, , ,164 Finance cost (12,960) (23,906) (153,437) (103,570) (17,176) (2,674) (42,734) (20,445) Finance income 41,204 52, ,889 68,101 35,780 38,978 43,104 7,815 Share of results of equity accounted investees 490, , Eliminations / adjustments (604) (588) (1,100) - (3,518) (2,427) (3,000) (3,000) Profit / (loss) before tax 747, , , , ,462 64, , ,534 Tax expense (44,022) (71,189) (66,847) (45,006) (17,150) (22,617) (64,679) (128,172) Profit / (loss) for the period 703, , , , ,312 42, , ,362 Segment assets 6,586,187 8,137,942 48,234,607 50,021,694 14,317,293 11,136,074 16,466,328 12,768,537 Investments in associates Deferred tax assets Goodwill Other current assets Eliminations / adjustments Total Assets Purchase and construction of PPE 6,580 6, , ,708 13,410 1, , ,505 Addition to IA , Depreciation of PPE 19,407 23, , ,499 5,833 2, , ,391 Amortisation / impairment of IA 1,207 2, ,974 3,046 Amortisation of LRPA , , Gratuity provision and related costs 4,061 5,210 21,821 16, ,171 22,547 Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. PPE (Property, plant and equipment), IA (Intangible assets), LRPA (Lease rentals paid in advance) 14 l JOHN KEELLS HOLDINGS PLC l

17 Chairman s Message Financial Information Financial Services Information Technology Others Group Total ,229,523 1,997,392 1,879,275 1,431, , ,799 20,012,040 20,012,882 26,998 24,449 75,117 72, , , , ,266 2,256,521 2,021,841 1,954,392 1,504, , ,512 20,564,985 20,442,148 (552,945) (429,266) 20,012,040 20,012,882 31, ,409 8,514 29,581 (108,237) (24,167) 1,014,550 1,640,292 (1) (145,338) (20,247) (15,492) (122,756) (154,060) (369,311) (465,485) 27,435 12,819 3,496 1, , , , , , ,338 - (9,979) 10,766 (3,391) 701, , , ,210 (15,791) 170,808 (21,806) 259, ,228 64,583 5, ,180 71,591 2,199,722 2,396,585 (65,933) (85,027) (11,585) (5,385) (184,257) (182,629) (454,473) (540,025) 193, ,201 52, ,923 (111,038) 1,745,249 1,856,560 28,465,997 23,378,562 3,641,604 3,283,744 24,200,021 19,860, ,912, ,587,465 16,531,774 16,640, , , , ,900 3,502,770 1,708,244 (8,636) (15,201,104) 163,130, ,616,718 44,406 55,776 25,452 14,775 27,455 18, ,891 1,057, ,305 2,615 14,099-19,672 3,238 37,841 36,019 29,202 32,635 30,135 29, , ,092 47,066 46,854 3,738 5,067 5,961 4,376 61,946 62, , , ,826 8,132 7,806 3,571 3,230 9,976 9,774 72,032 65,768 Interim Financial Statements l 15

18 PROGRESSIVE NOTES TO THE INTERIM CONDENSED 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. 2 INTERIM CONDENSED FINANCIAL STATEMENTS The financial statements for the period ended 30 June 2013, includes the Company referring to John Keells Holdings PLC., as the holding company and the Group referring to the companies whose accounts have been consolidated therein. 3 APPROVAL OF FINANCIAL STATEMENTS The interim condensed financial statements of the Group and the Company for the 3 months ended 30 June 2013 were authorised for issue by the Board of Directors on 26 July BASIS OF PREPARATION The interim condensed financial statements have been prepared in compliance with Sri Lanka Accounting Standard LKAS 34 - Interim Financial Reporting. These interim condensed financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 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. The interim condensed financial statements are presented in Sri Lankan Rupees and all values are rounded to the nearest thousand except when otherwise indicated. 5 OPERATING SEGMENTS For management purposes, the Group is organised into business units based on their products and services and has seven reportable operating segments as follows: Transportation Leisure Property Consumer Foods & Retail Financial Services Information Technology Others 6 CHANGE IN LIFE INSURANCE CONTRACT LIABILITIES The results of Union Assurance PLC s life business segment is consolidated line by line into the Group s consolidated income statement. The change in life insurance contract liabilities represents the transfer to the Life Fund, the difference between all income and expenditure attributable to life policy holders during the period. 7 TAX EXPENSE Group Company For the three months ended 30th June Income statement Current income tax 463, ,584 32,532 4,752 Deferred tax (8,731) (7,559) - - Other comprehensive Income Deferred tax , ,025 32,532 4, l JOHN KEELLS HOLDINGS PLC l

19 Chairman s Message Financial Information 8 RELATED PARTY TRANSACTIONS Group Company For the three months ended 30th June Transactions with related parties Subsidiaries (Purchase) / sale of goods (287) (Receiving) / rendering of services , ,607 (Purchase) / sale of property plant & equipment Loans given ,000 Interest received / (paid) ,791 Rent received / (paid) - - (29,012) (12,819) Guarantees received / (paid) Joint Ventures (Receiving) / rendering of services 15,628 8, Associates (Purchase) / sale of goods 1, (Receiving) / rendering of services 10,527 6, Interest received / (paid) 43, ,477 19,386 71,489 Loans taken Leases taken Key management personnel (KMP) (Receiving) / rendering of services Close family members of KMP (Receiving) / rendering of services Companies controlled / jointly controlled / significantly Influenced by KMP and their close family members (Purchase) / sale of goods Post employment benefit plan Contributions to the provident fund 87,378 49,204 19,121 10,331 Interim Financial Statements l 17

20 PROGRESSIVE NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 9 SHARE INFORMATION 9.1 Public share holdings The percentage of shares held by the public as at 30 June 2013 was % (31 March %). 9.2 Directors share holdings The number of shares held by the Board of Directors are as follows: As at S C Ratnayake Chairman/CEO 5,299,066 5,299,066 A D Gunewardene Deputy Chairman 6,481,720 6,481,720 J R F Peiris 1,371,392 1,371,392 E F G Amerasinghe 5,514 5,514 T Das Nil Nil S S Tiruchelvam 1,300 1,300 I Coomaraswamy Nil Nil A R Gunasekara 107, ,866 M A Omar Nil Nil 9.3 Twenty largest shareholders of the Company are as follows: As at Number of % Number of % shares shares % shares 1 Mr S E Captain 84,774, % 82,431, % 2 Broga Hill Investments Limited 84,681, % 74,591, % 3 Janus Overseas Fund 75,942, % 86,536, % 4 Paints & General Industries Limited 50,007, % 49,086, % 5 Deutsche Bank AG London 33,628, % 32,930, % 6 Aberdeen Global-Asian Smaller Companies Fund 32,930, % 26,563, % 7 Melstacorp (Private) Limited 31,499, % 31,499, % 8 Aberdeen Global-Emerging Markets Smaller companies fund 22,990, % 30,850, % 9 Estate of Mr A A N De Fonseka 19,952, % 19,952, % 10 Aberdeen Global Asia Pacific Equity Fund 19,047, % 19,047, % 11 Janus Aspen series Overseas Portfolio Fund 18,303, % 18,303, % 12 Schroder International Selection Fund 13,531, % 13,172, % 13 Mr K Balendra 13,141, % 13,141, % 14 J P Morgan Clearing Corporation 11,365, % 11,518, % 15 Rubber Investment Trust Limited A/C no.1 10,991, % 11,535, % 16 London- Edinburgh Dragon Trust PLC 10,936, % 10,936, % 17 BBH-Matthews International Funds 9,556, % 9,556, % 18 Aberdeen Asia Pacific Fund 9,074, % 9,074, % 19 Mrs D Kumaranayagam 7,751, % 7,751, % 20 Aberdeen Institutional Commingled Funds, LLC 7,530, % 7,325, % 18 l JOHN KEELLS HOLDINGS PLC l

21 Chairman s Message Financial Information 9.4 Stated capital Stated capital is represented by number of shares in issue as given below: As at Ordinary shares 856,577, ,112,828 Global depository receipts 1,122,069 1,129, 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 June Market price per share For the quarter ended 30th June Rs. Rs. Highest Lowest Last traded DIVIDENDS PAID A final dividend of Rs.1.50 per share for the financial year ended 31 March 2013 was paid on 17 June DISPOSAL OF ASSOCIATE In June 2013, as per sales and purchase agreement the Group disposed of its interest in one of its associates, namely NDO India (Pvt) Ltd. The resultant loss of Rs.11mn has been reflected in the Consolidated Income Statement. 12 CONTINGENCIES, CAPITAL AND OTHER COMMITMENTS There has been no significant change in the nature of the contingencies and other commitments, which were disclosed in the annual report for the year ended 31 March EVENTS AFTER THE REPORTING PERIOD John Keells holdings PLC. (JKH) has proposed to the Government of Sri Lanka a Project, valued in excess of USD 650mn, involving the developing, owning, managing, operating, selling, leasing and renting a luxury multi/mixed use Integrated Resort (the Project ) in the land owned and occupied by its subsidiaries Ceylon Cold Stores PLC (CCS), John Keells PLC (JKL), John Keells Properties (Pvt) Ltd (JKP) and Waterfront Properties (Pvt) Ltd (WPL) in Colombo 2. John Keells Holdings PLC together with its subsidiaries CCS, JKL and JKP will be majority shareholders in the Project Company, WPL. The Board of Directors has approved the Project subject to the Company receiving all the necessary approvals to the satisfaction of the Board including shareholder approval as necessary. The Project Company has already entered into an agreement with the Board of Investment of Sri Lanka to facilitate the requisite approvals and a Gazette published on the 18 July 2013 under the Strategic Development Projects Act has made available tax, duty and other concessions to the Project. The Board has authorized the Company to call for an EGM to seek shareholder approval of the Investment as a Major Transaction under the Companies Act of Interim Financial Statements l 19

22 PROGRESSIVE NOTES 20 l JOHN KEELLS HOLDINGS PLC l

23 Corporate Information Name of Company John Keells Holdings PLC Legal Form Public Limited Liability Company Incorporated in Sri Lanka in 1979 Ordinary Shares listed on the Colombo Stock Exchange GDRs listed on the Luxembourg Stock Exchange Company Registration No. PQ 14 Directors S C Ratnayake Chairman A D Gunewardene Deputy Chairman J R F Peiris E F G Amerasinghe I Coomaraswamy T Das A R Gunasekara M A Omar S S Tiruchelvam Senior Independent Director E F G Amerasinghe Audit Committee A R Gunasekara Chairman E F G Amerasinghe I Coomaraswamy Human Resources and Compensation Committee E F G Amerasinghe Chairman I Coomaraswamy A R Gunasekara S S Tiruchelvam Nominations Committee T Das Chairman S S Tiruchelvam S C Ratnayake Bankers Bank of Ceylon Citibank N.A Commercial Bank Deutsche Bank A.G DFCC Bank DFCC Vardhana Bank Hatton National Bank Hongkong & Shanghai Banking Corporation Muslim Commercial Bank Nations Trust Bank National Savings Bank Pan Asia Banking Corporation People s Bank Sampath Bank Seylan Bank Standard Chartered Bank Depository for GDRs Citibank N.A New York Registered office of the Company 130 Glennie Street Colombo 2, Sri Lanka Internet: jkh@keells.com Secretaries and Registrars Keells Consultants (Pvt) Limited 130 Glennie Street Colombo 2, Sri Lanka Telephone: Facsimile: Investor Relations John Keells Holdings PLC 130 Glennie Street Colombo 2, Sri Lanka Telephone: Facsimile: investor.relations@keells.com Group Sustainability and Enterprise Risk Management John Keells Holdings PLC 130 Glennie Street Colombo 2, Sri Lanka Telephone: Facsimile: sustainability@keells.com Contact for Media Corporate Communications Division John Keells Holdings PLC 130 Glennie Street Colombo 2, Sri Lanka Telephone: jkh@keells.com Auditors Ernst & Young Chartered Accountants P.O. Box 101 Colombo, Sri Lanka

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