CorporateCraftsmanship

Transcription

1 CorporateCraftsmanship John Keells Holdings PLC Interim Condensed Financial Statements Three months ended 30th June 2017

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3 1 Chairman's Review Dear Stakeholder, The Group profit before tax (PBT) at Rs.4.09 billion in the first quarter of the financial year 2017/18 is an increase of 14 per cent over the Rs.3.58 billion recorded in the previous financial year. The profit attributable to equity holders at Rs.2.83 billion is an increase of 19 per cent over the Rs.2.37 billion in the corresponding period of the previous financial year. The revenue at Rs billion for the period under review is an increase of 18 per cent over the Rs billion recorded in the previous financial year. The Company PBT for the first quarter of 2017/18 at Rs.3.36 billion is an increase of 18 per cent over the Rs.2.85 billion recorded in the corresponding period of 2016/17. Transportation The Transportation industry group PBT of Rs.807 million in the first quarter of 2017/18 is an increase of 14 per cent over the first quarter of the previous financial year [2016/17 Q1: Rs.711 million]. The increase in profitability is mainly attributable to the performance of the Group s Ports, Shipping and Logistics businesses which recorded improved performances as a result of increases in volumes and throughput. Whilst the Group s Bunkering business improved market share and recorded a notable growth in volumes, a contraction in margins arising out of the competitive operating environment impacted profitability during the quarter. Leisure The Leisure industry group PBT of Rs.179 million in the first quarter of 2017/18 is a decrease of 68 per cent over the first quarter of the previous financial year [2016/17 Q1: Rs.558 million]. As noted in my message in the 2016/17 Annual Report, the decline was anticipated and arises from a non-cash impact of Rs.203 million on account of the acceleration of depreciation on assets from the closure of Bentota Beach by Cinnamon, and the partial closures of Cinnamon Dhonveli Maldives and Ellaidhoo Maldives by Cinnamon for on-going refurbishments. During the quarter under review, overall arrivals to Sri Lanka witnessed a moderation in growth as a result of the negative publicity and travel warnings following the flooding and landslides in May. Despite this, both the City Hotels sector and Sri Lankan Resorts segment recorded an improvement in occupancies which partially off-set the impact of the decline in average room rates. The occupancies in the Maldivian Resorts segment were also impacted due to a lower than expected growth in arrivals because of adverse weather conditions. However, it is noteworthy that occupancies at Cinnamon hotels remained above the industry average during the quarter under review. The improved performance of the Chinese and UK markets contributed towards a notable growth in profitability for the Destination Management business. Property The Property industry group PBT of Rs.62 million in the first quarter of 2017/18 is an increase of 7 per cent over the first quarter of the previous financial year [2016/17 Q1: Rs.57 million]. The increase in profitability is mainly attributable to the higher rental income received from the property management businesses. The feasibility evaluation of the prospective property development project in central Colombo is ongoing, where the finalisation of design concepts and obtaining the requisite approvals are underway. The construction of Cinnamon Life is progressing with encouraging momentum. Consumer Foods and Retail The Consumer Foods and Retail industry group PBT of Rs.1.07 billion in the first quarter of 2017/18 is a decrease of 18 per cent over the first quarter of the previous financial year [2016/17 Q1: Rs.1.30 billion]. The decline in profitability is mainly on account of the lower volumes in the Frozen Confectionery and Beverage businesses, where a tapering of demand continued to be witnessed in the quarter under review as a result of subdued consumer discretionary spending, as alluded to in my message in the 2016/17 Annual Report. Volume reductions were further exacerbated by the impacts of the flooding and landslides in May. The decline in profitability was partially mitigated by the Retail sector which recorded a strong performance. This was aided by growth in footfall which also contributed towards a yearon-year growth in same store sales. The overall profitability was enhanced as a result of notable contributions from the newly opened outlets. The planned outlet expansion is on track, with a number of sites identified. Financial Services The Financial Services industry group PBT of Rs.239 million in the first quarter of 2017/18 is an increase of 22 per cent over the first quarter of the previous financial year [2016/17 Q1: Rs.196 million]. The increase in profitability was primarily due to Union Assurance PLC which recorded encouraging

4 2 John Keells Holdings PLC Interim Condensed Financial Statements Three months ended 30 June 2017 double-digit growth in gross written premiums and John Keells Stock Brokers which recorded a better performance when compared to the previous year. Nations Trust Bank recorded encouraging loan growth and an improvement in net interest income. Information Technology The Information Technology industry group PBT of Rs.71 million in the first quarter of 2017/18 is an increase over the first quarter of the previous financial year [2016/17 Q1: Rs.25 million]. This was due to a significant one-off charge in the BPO business in the corresponding quarter of 2016/17. Other, Including Plantation Services Other, including the Plantation Services sector and the Holding Company, PBT of Rs.1.66 billion in the first quarter of 2017/18 is a significant increase over the first quarter of the previous financial year [2016/17 Q1: Rs.735 million]. The increase in PBT is mainly attributable to the increases in finance income due to higher interest rates and a higher value under investment, and exchange gains recorded at the Company on its foreign currency denominated cash holdings compared to the exchange loss recorded in the corresponding quarter of the previous financial year. The Plantations Services sector recorded an improvement in profitability due to improved tea prices. Sustainability Initiatives The carbon footprint per million rupees of revenue and water withdrawn per million rupees of revenue decreased by 10 per cent and 17 per cent respectively, to 0.89 MT and cubic meters, demonstrating the positive outcomes of the Group s concerted efforts in these areas. Whilst the Group water withdrawal decreased by 2 per cent to 490,160 cubic meters, primarily due to decreased operational activities in the Consumer Foods sector, the Group reported an increase of 6 per cent in its carbon footprint to 23,996 MT mainly due to increased operational activities in the Retail sector and the inclusion of Cinnamon Air to the Group s sustainability reporting scope. The Group s employees were provided with approximately 9 hours of training per employee, whilst 49 occupational injuries were reported during the quarter under review. Corporate Social Responsibility Following are some of the highlights of the John Keells Foundation s (JKF) work during the quarter under review. JKF, along with Group businesses, mobilised staff and other resources towards the provision of immediate relief and resettlement support for flood affected victims. Collection points were set up at Keells Super outlets for the public to donate dry rations and sanitary items with contributions being matched on a One to One basis. JKF, in collaboration with Sri Lanka Red Cross Society (SLRCS), also initiated a well cleaning programme in Galle and Kalutara whereby 780 wells were cleaned, benefitting a total of 7,479 persons. JKF and SLRCS also distributed school requirements including books, stationery items and school bags, to an estimated 1,000 school children in Galle, Kalutara and Matara. Under the English Language Scholarship Programme, regional English Days were successfully held across the island in 5 provinces. This is the first time regional English Days were held, giving all students the opportunity to showcase their English language skills and build confidence through a recital or performance. JKF was awarded the SLT Zero One Digital Excellence Award under the Health and Personal Care Services Category for the Best Community Empowerment Programme for the HIV and AIDS e-learning platform. Under the John Keells Vision Project a total of 773 cataract patients were identified and 719 cataract surgeries completed in the first quarter. More than 4,000 school children from 11 schools were screened and 328 spectacles donated under the School Screening Programme. At the Volunteer Recognition Day 2017, a total of 1,008 Group staff were recognised for their volunteerism in the Foundation s initiatives during 2016/17. Susantha Ratnayake Chairman 27 July 2017

5 3 Consolidated Income Statement For the three months ended 30 June Note Change % Continuing operations Sale of goods 18,588,699 15,185, Rendering of services 8,233,316 7,546,895 9 Revenue 26,822,015 22,731, Cost of sales (20,115,987) (16,097,386) 25 Gross profit 6,706,028 6,634,603 1 Other operating income 482, , Selling and distribution expenses (1,004,519) (958,705) 5 Administrative expenses (3,259,489) (2,741,686) 19 Other operating expenses (780,200) (794,312) (2) Results from operating activities 2,144,780 2,418,046 (11) Finance cost (144,364) (271,218) (47) Finance income 3,469,780 2,107, Change in insurance contract liabilities 6 (2,217,048) (1,412,507) 57 Share of results of equity accounted investees 834, , Profit before tax 4,087,858 3,583, Tax expense 7 (1,072,023) (936,487) 14 Profit for the period 3,015,835 2,647, Attributable to: Equity holders of the parent 2,832,756 2,371, Non-controlling interest 183, ,384 (34) 3,015,835 2,647, LKR. LKR. Earnings per share Basic Diluted Dividend per share Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.

6 4 John Keells Holdings PLC Interim Condensed Financial Statements Three months ended 30 June 2017 Consolidated Statement of Comprehensive Income For the three months ended 30 June Note Profit for the period 3,015,835 2,647,435 Other comprehensive income Other comprehensive income to be reclassified to income statement in subsequent periods Currency translation of foreign operations 391,859 (344,473) Net (loss)/gain on cash flow hedges (24,208) (215,575) Share of other comprehensive income of equity-accounted investees 58,842 (6,804) Net gain/(loss) on available-for-sale financial assets 444,532 72,908 Net other comprehensive income to be reclassified to income statement in subsequent periods 871,025 (493,944) Other comprehensive income not to be reclassified to income statement in subsequent periods Remeasurement gain / (loss) on defined benefit plans (9,600) - Net other comprehensive income not to be reclassified to income statement in subsequent periods (9,600) - Tax on other comprehensive income 7 (836) (1,185) Other comprehensive income for the period, net of tax 860,589 (495,129) Total comprehensive income for the period, net of tax 3,876,424 2,152,306 Attributable to: Equity holders of the parent 3,632,485 1,928,114 Non-controlling interest 243, ,192 3,876,424 2,152,306 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.

7 5 Consolidated Statement of Financial Position As at ASSETS Non-current assets Property, plant and equipment 64,816,495 64,396,373 Lease rentals paid in advance 13,178,152 13,206,058 Investment property 5,366,180 5,366,180 Intangible assets 2,053,398 2,118,160 Investments in equity accounted investees 18,612,440 17,718,887 Non-current financial assets 29,043,864 27,666,621 Deferred tax assets 158, ,548 Other non-current assets 43,065,998 41,692, ,294, ,308,143 Current assets Inventories 5,699,336 5,605,712 Trade and other receivables 8,778,731 11,687,429 Amounts due from related parties 182, ,639 Other current assets 4,530,242 3,265,327 Short term investments 82,213,123 79,174,327 Cash in hand and at bank 3,784,529 5,119, ,188, ,963,619 Total assets 281,483, ,271,762 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Stated capital 62,790,080 62,790,080 Revenue reserves 77,605,272 77,193,184 Other components of equity 39,537,252 38,651, ,932, ,634,832 Non-controlling interest 15,206,965 15,695,543 Total equity 195,139, ,330,375 Non-current liabilities Insurance contract liabilities 33,814,859 31,700,278 Interest bearing loans and borrowings 16,901,896 14,202,636 Deferred tax liabilities 2,340,869 2,336,241 Employee benefit liabilities 1,948,557 1,880,287 Other deferred liabilities 844, ,891 Other non-current liabilities 4,212,988 3,933,882 60,063,937 54,892,215 Current liabilities Trade and other payables 12,050,078 14,136,040 Amounts due to related parties 2,420 10,434 Income tax liabilities 3,329,366 2,395,379 Short term borrowings 1,561,037 1,380,238 Interest bearing loans and borrowings 1,417,259 2,918,854 Other current liabilities 2,620,977 2,944,118 Bank overdrafts 5,299,174 4,264,109 26,280,311 28,049,172 Total equity and liabilities 281,483, ,271,762 LKR LKR Net assets per share Note : All values are in LKR '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 27 July 2017 J R F Peiris Group Finance Director

8 6 John Keells Holdings PLC Interim Condensed Financial Statements Three months ended 30 June 2017 Consolidated Statement of Cash Flows For the three months ended 30 June Note CASH FLOWS FROM OPERATING ACTIVITIES Profit before working capital changes A 1,239,107 2,132,006 (Increase) / Decrease in inventories (93,624) 132,877 (Increase) / Decrease in trade and other receivables 2,970,290 1,772,255 (Increase) / Decrease in other current assets (1,069,113) (298,106) (Increase) / Decrease in other non-current assets (961,816) (541,718) Increase / (Decrease) in trade, other payables and other non-current liabilities (1,879,458) (1,658,905) Increase / (Decrease) in other current liabilities (274,909) 95,951 Increase / (Decrease) in insurance contract liabilities 2,114,581 1,385,749 Cash generated from operations 2,045,058 3,020,109 Finance income received 2,933,189 2,023,100 Finance costs paid (144,364) (209,342) Tax paid (353,738) (944,740) Gratuity paid (41,190) (32,809) Net cash flow from operating activities 4,438,955 3,856,318 CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (1,353,672) (737,904) Purchase of intangible assets (18,198) (26,131) Addition to investment property - (97) Acquisition of subsidiaries (net of cash acquired) B (78,584) - Proceeds from sale of property, plant and equipment and intangible assets 31,904 33,646 Proceeds from sale of financial instruments - fair valued through profit or loss 293,030 21,376 Purchase of financial instruments - fair valued through profit or loss (348,791) (183,683) (Purchase) / disposal of short term investments (net) (30,373,726) (177,811) (Purchase) / disposal of non current financial assets (net) (914,816) (5,310,384) Grants received for investing activities 6,123 37,364 Net cash flow from / (used in) investing activities (32,756,730) (6,343,624) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES Changes in non controling interest 10,598 - Dividend paid to equity holders of parent (2,774,934) (1,784,105) Dividend paid to shareholders with non-controlling interest (417,248) (423,412) Proceeds from long term borrowings 2,852,392 1,370 Repayment of long term borrowings (1,830,835) (1,105,928) Proceeds from/(repayment of) other financial liabilities (net) 180, ,880 Net cash flow from / (used in) financing activities (1,979,228) (2,643,195) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (30,297,003) (5,130,501) CASH AND CASH EQUIVALENTS AT THE BEGINNING 47,643,605 48,398,696 CASH AND CASH EQUIVALENTS AT THE END 17,346,602 43,268,195 ANALYSIS OF CASH AND CASH EQUIVALENTS Favorable balances Short term investments 18,861,247 42,113,702 Cash in hand and at bank 3,784,529 4,737,791 Unfavorable balances Bank overdrafts (5,299,174) (3,583,298) Total Cash and cash equivalents 17,346,602 43,268,195 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.

9 7 For the three months ended 30 June Note A. Profit before working capital changes Profit before tax 4,087,858 3,583,922 Adjustments for: Finance income (3,469,780) (2,107,097) Finance cost 144, ,218 Share-based payment expense 114, ,284 Share of results of equity accounted investees (834,710) (742,504) Depreciation of property, plant and equipment 934, ,165 (Profit)/loss on sale of property, plant and equipment and intangible assets (18,532) 7,918 Amortisation of lease rentals paid in advance 108, ,093 Amortisation of intangible assets 82,960 81,639 Amortisation of other deferred liabilities (1,474) (4,719) Gratuity provision and related costs 92,204 78,234 Goodwill Impairment B 23,445 - Accumulated unrecognised (gain)/ loss net (31,392) - Unrealised (gain) / loss on foreign exchange (net) 6,744 14,853 1,239,107 2,132,006 B. Obtaining control of a subsidiary In June 2017, Mack International Freight (Pvt) limited (formerly known as NDO Lanka (Pvt) Limited). became a fully owned subsidiary of the Group, arising from the buyout of 40% stake from the other venture partner, for a nominal value by John Keells Holdings PLC. The fair value of assets acquired and liabilities assumed were as follows: ASSETS Cash 3,211 Trade and other receivables 125,200 Other current assets 26,425 Non-current financial assets 23,335 Non-current assets 524 Property, plant and equipment 1,445 LIABILITIES Bank overdrafts (153,795) Income tax liabilities (12,040) Other current liabilities (795) Trade and other payables (64,588) Employee benefit liabilities (7,535) Total identifiable net assets at fair value (58,613) Share of net assets acquired (23,445) Goodwill 23,445 Purchase consideration - Bank overdraft settled by other venture partner 72,000 Cash and cash equivalent acquired (150,584) Net cash outflow (78,584) Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.

10 8 John Keells Holdings PLC Interim Condensed Financial Statements Three months ended 30 June 2017 Consolidated Statement of Changes in Equity Attributable to equity holders of the parent Note Stated capital Revaluation reserve Foreign currency translation reserve Cash flow hedge reserve Other capital reserves Available for sale reserve Revenue reserves Total Noncontrolling interest Total Equity As at 1 April ,701,977 20,846,190 7,080, ,310 (170,217) 67,564, ,981,752 13,498, ,480,322 Profit for the period ,371,051 2,371, ,384 2,647,435 Other comprehensive income - (1,185) (302,453) (202,446) - 63,147 - (442,937) (52,192) (495,129) Total comprehensive income - (1,185) (302,453) (202,446) - 63,147 2,371,051 1,928, ,192 2,152,306 Share based payments , , ,284 Final dividend paid / (1,784,105) (1,784,105) - (1,784,105) Subsidiary dividend to noncontrolling interest , ,015 (719,427) (423,412) As at 30 June ,701,977 20,845,005 6,778,526 (202,446) 1,059,594 (107,070) 68,447, ,523,060 13,003, ,526,395 As at 1 April ,790,080 28,994,792 8,303, ,529 1,402,656 (362,304) 77,193, ,634,832 15,695, ,330,375 Profit for the period ,832,756 2,832, ,079 3,015,835 Other comprehensive income - (836) 412,523 (22,845) - 382,488 28, ,729 60, ,589 Total comprehensive income - (836) 412,523 (22,845) - 382,488 2,861,155 3,632, ,939 3,876,424 Share based payments , , ,354 Final dividend paid / (2,774,934) (2,774,934) - (2,774,934) Subsidiary dividend to noncontrolling interest Acquisition, disposal and changes in non-controlling interest , ,274 (732,522) (417,248) ,593 10, ,598 As at 30 June ,790,080 28,993,956 8,716, ,684 1,517,010 20,184 77,605, ,932,604 15,206, ,139,569 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.

11 9 Company Income Statement For the three months ended 30 June Note Change % Continuing operations Rendering of services 322, , Revenue 322, , Cost of sales (172,751) (145,990) 18 Gross profit 149, , Dividend income 1,751,801 2,117,430 (17) Other operating income 3,714 6,764 (45) Administrative expenses (316,347) (267,487) 18 Other operating expenses (8,614) (12,426) (31) Results from operating activities 1,580,336 1,952,422 (19) Finance cost (27,605) (187,942) (85) Finance income 1,805,885 1,088, Profit before tax 3,358,616 2,853, Tax expense 7 (352,317) (232,115) 52 Profit for the period 3,006,299 2,621, LKR. LKR. Dividend per share Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.

12 10 John Keells Holdings PLC Interim Condensed Financial Statements Three months ended 30 June 2017 Company Statement of Comprehensive Income For the three months ended 30 June Note Profit for the period 3,006,299 2,621,261 Other comprehensive income Other comprehensive income to be reclassified to income statement in subsequent periods Net gain/(loss) on available-for-sale financial assets 5,619 5,015 Net other comprehensive income to be reclassified to income statement in 5,619 5,015 subsequent periods Tax on other comprehensive income Other comprehensive income for the period, net of tax 5,619 5,015 Total comprehensive income for the period, net of tax 3,011,918 2,626,276 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.

13 11 Company Statement of Financial Position As at ASSETS Non-current assets Property, plant and equipment 91,031 93,913 Intangible assets 36,366 30,801 Investments in subsidiaries 43,607,413 42,987,395 Investments in equity accounted investees 8,910,800 8,910,800 Non current financial assets 2,860,803 2,789,980 Other non current assets 16,254 16,254 55,522,667 54,829,143 Current assets Trade and other receivables 150, ,076 Amounts due from related parties 267, ,735 Other current assets 124,970 99,442 Short term investments 61,755,735 60,243,280 Cash in hand and at bank 92, ,265 62,392,013 61,051,798 Total assets 117,914, ,880,941 EQUITY AND LIABILITIES Stated capital 62,790,080 62,790,080 Revenue reserves 50,219,860 49,988,495 Other components of equity 1,624,849 1,504,876 Total equity 114,634, ,283,451 Non-current liabilities Employee benefit liabilities 225, ,910 Other deferred liabilities 105, , , ,128 Current liabilities Trade and other payables 445, ,078 Amounts due to related parties 207, ,029 Income tax liabilities 784, ,532 Other current liabilities 23,844 16,441 Bank overdrafts 1,487,449 84,282 2,948,914 1,276,362 Total equity and liabilities 117,914, ,880,941 LKR. LKR. Net assets per share Note : All values are in LKR '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 27 July 2017 J R F Peiris Group Finance Director

14 12 John Keells Holdings PLC Interim Condensed Financial Statements Three months ended 30 June 2017 Company Statement of Cash Flows For the three months ended 30 June Note CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 3,358,616 2,853,376 Adjustments for: Finance income (1,805,885) (1,088,896) Dividend income (1,751,801) (2,117,430) Finance cost 27, ,942 Depreciation of property, plant and equipment 6,989 9,079 Amortisation of intangible assets 4,558 5,214 Share based payment expenses 29,313 31,884 Gratuity provision and related costs 9,573 7,055 Profit before working capital changes (121,032) (111,776) (Increase) / Decrease in trade and other receivables (138,044) 1,544 (Increase) / Decrease in other current assets (25,528) 18,653 Increase / (Decrease) in trade and other payables 107,174 61,291 Increase / (Decrease) in other current liabilities 7,402 (3,590) Cash generated from operations (170,028) (33,878) Finance income received 2,591,574 1,107,703 Finance costs paid (20,209) (139,901) Dividend received 1,876,334 2,562,704 Tax paid (203,084) (275,641) Gratuity paid (1,555) (5,835) Net cash flow from operating activities 4,073,032 3,215,152 CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (4,107) (963) Purchase of intangible assets (10,125) - Increase in interest in subsidiaries (534,975) (2,365,343) (Purchase) / disposal of short term investments (net) (31,660,583) (21,254,798) (Purchase) / disposal of non current financial assets (net) (10,711) 14,503 Net cash flow from/(used in) investing activities (32,220,501) (23,606,601) CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES Dividend paid (2,774,934) (1,784,105) Repayment of long term borrowings - (725,295) Net cash flow from / (used in) financing activities (2,774,934) (2,509,400) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (30,922,403) (22,900,849) CASH AND CASH EQUIVALENTS AT THE BEGINNING 39,989,189 37,135,335 CASH AND CASH EQUIVALENTS AT THE END 9,066,786 14,234,486 ANALYSIS OF CASH & CASH EQUIVALENTS Favorable balances Short term investments 10,461,259 14,305,043 Cash in hand and at bank 92, ,290 Unfavorable balances Bank overdrafts (1,487,449) (306,847) Total cash and cash equivalents 9,066,786 14,234,486 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.

15 13 Company Statement of Changes in Equity Note Stated capital Other capital reserves Available for sale reserve Revenue reserves Total Equity As at 1 April ,701, , ,307 41,121, ,908,454 Profit for the period ,621,261 2,621,261 Other comprehensive income - - 5,015-5,015 Total comprehensive income - - 5,015 2,621,261 2,626,276 Share based payments - 101, ,284 Final dividend paid / (1,784,105) (1,784,105) As at 30 June ,701,977 1,059, ,322 41,959, ,851,909 As at 1 April ,790,080 1,402, ,220 49,988, ,283,451 Profit for the period ,006,299 3,006,299 Other comprehensive income - - 5,619-5,619 Total comprehensive income - - 5,619 3,006,299 3,011,918 Share based payments - 114, ,354 Final dividend paid / (2,774,934) (2,774,934) As at 30 June ,790,080 1,517, ,839 50,219, ,634,789 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.

16 14 John Keells Holdings PLC Interim Condensed Financial Statements Three months ended 30 June 2017 Notes to the Interim Condensed Financial Statements Operating segment information Business segments The following tables present revenue, profit information and other disclosures regarding Group's business segments. Transportation Leisure Property For the three months ended 30 June External revenue 3,552,712 2,237,948 4,898,323 4,828, , ,438 Inter segment revenue 111,875 83,848 1, ,029 50,363 Total segment revenue 3,664,587 2,321,796 4,899,385 4,829, , ,801 Eliminations of inter segment revenue Net revenue Segment result 189, , , ,802 52,261 54,412 Finance cost (11,876) (3,976) (64,180) (41,427) (7,445) (10,334) Finance income 27,220 26, ,455 70,833 24,717 21,061 Share of results of equity accounted 594, ,085 9,246 (4,498) - - investees Eliminations / adjustments 7,053 (759) (4,258) (4,206) (7,887) (7,719) Profit / (loss) before tax 806, , , ,504 61,646 57,420 Tax expense (33,501) (16,096) (72,933) (82,431) (12,270) (8,550) Profit / (loss) for the period 773, , , ,073 49,376 48,870 Purchase and construction of PPE* 47,440 11, , , ,370 Addition to IA* Depreciation of PPE* 24,752 24, , ,991 5,995 3,474 Amortisation / impairment of IA* ,773 16, Amortisation of LRPA* , ,407 5,076 4,392 Gratuity provision and related costs 4,051 3,410 31,587 26, Note : All values are in LKR '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)

17 15 Consumer Foods & Retail Financial Services Information Technology Others Group Total ,871,965 10,837,730 2,243,794 1,861,007 2,252,834 2,110, , ,521 26,822,015 22,731,989 21,708 92, ,410 49, , , , ,677 12,893,673 10,930,212 2,243,794 1,861,011 2,316,244 2,159,888 1,050, ,092 27,292,002 23,191,666 (469,987) (459,677) 26,822,015 22,731,989 1,037,257 1,246,722 (26,663) (143,982) 66,816 22,195 (96,638) 21,768 1,335,214 1,889,890 (4,649) (5,462) (179) - (5,179) (5,378) (50,857) (204,641) (144,365) (271,218) 37,161 63,588 34, ,163 9,149 8,239 1,811, ,318 2,070,387 1,238, , , , ,504 (3,000) (3,000) (1) - - (8,088) (15,685) 1,066,769 1,301, , ,098 70,790 25,055 1,664, ,445 4,087,858 3,583,922 (310,930) (377,076) (3,250) (497) (19,107) (27,204) (620,032) (424,633) (1,072,023) (936,487) 755, , , ,601 51,683 (2,149) 1,044, ,812 3,015,835 2,647, , ,370 9,383 10,217 77,090 28,485 38,874 5,465 1,353, , ,538 23,516 2,535 2,615 10,125-18,198 26, , ,545 18,381 20,468 34,022 35,367 31,663 33, , ,165 3,316 3,000 55,464 53,836 1,887 2,267 4,558 5,343 82,960 81, , ,093 31,763 26,705 5,994 5,503 5,076 4,630 12,863 10,942 92,204 78,234

18 16 John Keells Holdings PLC Interim Condensed Financial Statements Three months ended 30 June 2017 Notes to the Interim Condensed Financial Statements Operating segment information Business segments The following table presents segment assets and liabilities of the Group s business segments. Transportation Leisure Property As at Property, plant and equipment 530, ,463 43,076,486 43,251,774 2,322,385 2,318,107 Lease rentals paid in advance ,498,817 11,495, , ,301 Investment property 487, ,000 2,148,400 2,148,400 5,231,075 5,230,949 Intangible assets 13,304 14, , ,191 2,771 2,963 Non-current financial assets 106,339 74,073 5,587,468 5,710, , ,679 Other non-current assets 14,169 11,163 23,062 25,343 42,722,275 41,379,103 Segment non-current assets 1,151,709 1,086,771 62,691,651 63,005,272 50,905,464 49,609,102 Investments in equity accounted investees 11,772,136 11,118, , , Deferred tax assets Goodwill Eliminations / adjustments Total non-current assets Inventories 542, , , ,494 14,710 15,255 Trade and other receivables 1,440,687 1,685,506 3,029,737 3,474, , ,864 Short term investments 2,166,545 2,053,279 6,425,866 8,188, , ,176 Cash in hand and at bank 403, ,699 1,345,257 2,198, , ,122 Segment current assets 4,553,000 4,551,945 11,131,032 14,199,739 1,370,325 2,917,417 Other current assets Eliminations / adjustments Total current assets Total assets Insurance contract liabilities Interest bearing loans and borrowings - - 8,785,222 6,650,926 12,666,193 12,548,001 Employee benefit liabilities 95,158 84, , ,131 40,787 29,435 Other deferred liabilities 1,355 1, , , , ,435 Other non-current liabilities 10,551 10, ,010,237 3,730,151 Segment non-current liabilities 107,064 96,766 9,559,692 7,409,064 17,273,827 16,866,022 Deferred tax liabilities Eliminations / adjustments Total non-current liabilities Trade and other payables 1,324, ,988 2,408,983 2,074, ,095 1,382,676 Short term borrowings 1,570,442 1,389, ,195 3,487, Interest bearing loans and borrowings - - 1,164,782 2,662, , ,645 Bank overdrafts 244, ,011 1,142,823 1,847, , ,561 Segment current liabilities 3,139,555 2,611,642 5,669,783 10,071,181 1,820,685 2,273,882 Income tax liabilities Other current liabilities Eliminations / adjustments Total current liabilities Total liabilities Total segment assets 5,704,709 5,638,716 73,822,683 77,205,011 52,275,789 52,526,519 Total segment liabilities 3,246,619 2,708,408 15,229,475 17,480,245 19,094,512 19,139,904 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.

19 17. Consumer Foods & Retail Financial Services Information Technology Others Group Total ,830,853 9,290,844 1,489,966 1,498, , ,153 1,287,624 1,287,795 58,841,365 58,408, , , ,386 40,679 11,932,352 11,955, , , ,434,063 3,434,063 11,507,580 11,507,454 34,370 37, , ,546 28,954 28,305 36,367 30,802 1,314,802 1,379, , ,097 24,963,182 23,645,619 56,453 57,131 2,898,692 2,827,038 34,231,500 32,973, , ,357 64,442 51,378 14,970 15,994 21,672 21,603 43,431,623 42,057,941 11,028,855 10,489,726 27,359,208 26,087, , ,583 7,718,804 7,641, ,259, ,281, ,318,909 6,088, ,612,440 17,718, , , , ,596 (4,473,731) (4,574,829) 176,294, ,308,143 3,828,557 3,840,380 17,061 14, , , , ,483 5,720,724 5,624,102 2,350,890 2,720, ,701 1,415,290 1,575,829 1,938,636 1,110,219 1,084,448 10,511,192 13,260,791 1,076, ,219 10,186,873 9,318, , ,577 61,986,695 60,565,974 83,166,976 82,661, , , , , , , , ,679 3,637,137 5,068,169 7,551,075 7,346,047 11,465,414 11,085,737 3,348,463 4,189,395 63,616,720 62,324, ,036, ,614,864 4,530,242 3,265,327 (2,377,335) (4,916,572) 105,188, ,963, ,483, ,271, ,814,859 31,700, ,814,859 31,700, , , ,353-12,000 12,000 22,078,073 19,500, , , , , , , , ,238 1,948,557 1,880,287 52,753 55, , , , , , , ,212,988 3,933,882 1,406,255 1,087,929 33,955,308 31,838, , , , ,229 62,899,917 57,854,833 2,340,869 2,336,241 (5,176,849) (5,298,859) 60,063,937 54,892,215 5,600,718 5,293,347 1,257,538 1,955,235 1,503,358 1,994, , ,391 13,688,345 14,315, ,074 12,074 2,535,711 4,889,121 57,500 65, , ,417,259 2,918,854 1,106, , , , , ,122 1,497,753 90,515 5,371,175 4,264,109 6,764,328 6,124,824 1,425,562 2,093,084 1,767,584 2,342,397 2,424, ,980 23,012,490 26,387,990 3,329,366 2,395,379 2,620,977 2,944,118 (2,682,522) (3,678,315) 26,280,311 28,049,172 86,344,248 82,941,387 18,579,930 17,835,773 38,824,622 37,173,244 3,751,994 4,550,978 71,335,524 69,966, ,295, ,896,805 8,170,583 7,212,753 35,380,870 33,932,018 1,904,286 2,449,286 2,886,062 1,320,209 85,912,407 84,242,823

20 18 John Keells Holdings PLC Interim Condensed Financial Statements Three months ended 30 June 2017 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 2017, 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 2017 were authorised for issue by the Board of Directors on 27 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 period have been amended, where relevant, for better presentation and to be comparable with those of the current period. The interim condensed financial statements are presented in Sri Lankan Rupees (LKR) 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 INSURANCE CONTRACT LIABILITIES The results of Union Assurance PLC are consolidated line by line into the Group's consolidated income statement. The change in 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.

21 19 7 TAX EXPENSE Group Company For the three months ended 30th June In LKR '000s Income statement Current income tax 1,070, , , ,115 Deferred tax charge/(reversal) 1,244 (21,653) - - 1,072, , , ,115 Other comprehensive Income Deferred tax charge/(reversal) 836 (1,185) (1,185) RELATED PARTY TRANSACTIONS Group Company For the three months ended 30th June In LKR '000s Transactions with related parties Subsidiaries Purchases of goods - - 4,173 1,107 Rendering of services , ,074 Receiving of services ,735 5,872 Rent paid - - 8,686 8,814 Equity accounted investees Sale of goods 18,914 9, Purchases of goods 1,903 1, Rendering of services 106, ,860 76,094 71,731 Receiving of services 103, ,402 26,881 7,836 Interest received 75,125 45,584 35,575 37,262 Interest paid 241 1, Key management personnel (KMP) Sale of goods Close family members of KMP Sale of goods Companies controlled/jointly controlled/significantly influenced by KMP and their close family members of KMP Sale of goods Post employment benefit plan Contributions to the provident fund 64,401 62,349 16,016 13,283

22 20 John Keells Holdings PLC Interim Condensed Financial Statements Three months ended 30 June 2017 Notes to the Interim Condensed Financial Statements 9 Share information 9.1 Stated capital Stated capital is represented by number of shares in issue as given below: As at Ordinary shares 1,386,146,195 1,386,146,195 Global depository receipts 1,320,942 1,320, 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 three months ended 30th June LKR. LKR. Highest Lowest Last traded Public share holdings The percentage of shares held by the public as at 30 June 2017 was 97.53% (31 March %). The number of public shareholders as at 30 June 2017 was 11,000 (31 March ,979). 9.5 Directors' share holdings The number of shares held by the Board of Directors (including their spouses) are as follows: As at S C Ratnayake Chairman/CEO 9,241,144 9,241,144 A D Gunewardene Deputy Chairman 10,989,350 10,989,350 J R F Peiris 2,966,800 2,966,800 K N J Balendra 10,914,400 10,914,400 J G A Cooray 207, ,105 D A Cabraal A N Fonseka Nil Nil M A Omar Nil Nil M P Perera Nil Nil S S H Wijayasuriya Nil Nil

23 Twenty largest shareholders of the company are as follows: As at Number of shares % Number of shares % 1 Broga Hill Investment Ltd 141,854, % 141,854, % 2 Mr S E Captain 138,806, % 149,425, % 3 Paints & General Industries Ltd 89,935, % 96,064, % 4 Schroder International Selection Fund 61,086, % 53,706, % 5 Melstacorp (Private) Ltd 49,667, % 52,023, % 6 HWIC Asia Fund 34,164, % 29,164, % 7 Aberdeen Global Asia Pacific Equity Fund 31,257, % 31,257, % 8 Aberdeen Global-Asian Smaller Companies Fund 30,213, % 26,913, % 9 Aberdeen Institutional Commingled Funds LLC 28,621, % 29,706, % 10 Aberdeen Global - Emerging Markets Smaller 23,463, % 25,263, % Companies Fund 11 Employees Trust Fund 22,143, % 23,366, % 12 Mr K Balendra 19,606, % 19,606, % 13 London- Edinburgh Dragon Trust PLC 17,947, % 17,947, % 14 SSBT - First State Investments ICVC 15,486, % 8,769, % 15 BBH Luxfidelity Fund-Pacific 14,959, % 8,190, % 16 London - Aberdeen Asia Pacific Equity Fund 14,891, % 14,891, % 17 Northen Trust Co S/A Edgbaston Asian Equity Trust 13,971, % 13,971, % 18 Mrs S A J De Fonseka 12,935, % 12,825, % 19 Mr C S De Fonseka 12,896, % 12,894, % 20 JPMCB-T Rowe New Asia Fund 12,831, % - N/A 10 Dividends paid Company For the three months ended 30th June Final dividend for 2016/17 LKR 2.00 (2015/16 LKR 1.50 ) 2,774,934 1,784, 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 There have been no events subsequent to the reporting date, which require disclosure in the interim condensed financial statement.

24 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 - Group Finance Director K N J Balendra J G A Cooray D A Cabraal A N Fonseka M A Omar M P Perera S S H Wijayasuriya Senior Independent Director A N Fonseka Audit Committee A N Fonseka - Chairman D A Cabraal M P Perera Human Resources and Compensation Committee D A Cabraal - Chairman M A Omar S S H Wijayasuriya Nominations Committee M A Omar - Chairman M P Perera S C Ratnayake S S H Wijayasuriya Related Party Transaction Review Committee M P Perera - Chairperson D A Cabraal A N Fonseka S C Ratnayake Registered Office of the Company 117 Sir Chittampalam A. Gardiner Mawatha, Colombo 2, Sri Lanka Telephone : Internet : jkh@keells.com Secretaries Keells Consultants (Private) Limited 117 Sir Chittampalam A. Gardiner Mawatha, Colombo 2, Sri Lanka Telephone : Facsimile : Investor Relations John Keells Holdings PLC 117 Sir Chittampalam A. Gardiner Mawatha, Colombo 2, Sri Lanka Telephone : Facsimile : investor.relations@keells. com Sustainability, Enterprise Risk Management and Group Initiatives 186 Vauxhall Street Colombo 2, Sri Lanka Telephone : Facsimile : sustainability@keells.com Contact for Media Corporate Communications Division John Keells Holdings PLC 117 Sir Chittampalam A. Gardiner Mawatha, Colombo 2, Sri Lanka Telephone : jkh@keells.com Auditors Ernst & Young Chartered Accountants P.O. Box 101 Colombo, Sri Lanka Bankers for the Company Bank of Ceylon Citibank N.A. Commercial Bank of Ceylon Deutsche Bank A.G. DFCC Bank Habib Bank Hatton National Bank Hongkong and Shanghai Banking Corporation MCB Bank National Savings Bank Nations Trust Bank NDB Bank Pan Asia Banking Corporation People s Bank Sampath Bank Seylan Bank Standard Chartered Bank Depository for GDRs Citibank N.A. New York

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