John Keells Holdings PLC

Transcription

1 H E L P I N G Y O U T O S E E U S M O R E CLEARLY John Keells Holdings PLC Interim Condensed Financial Statements Nine months ended 31st December 2015

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3 CHAIRMAN S MESSAGE 1 Dear Stakeholder, The Group profit before tax (PBT) in the third quarter of the financial year 2015/16 at Rs.5.30 billion, is 1 per cent below the PBT of Rs.5.37 billion, which included capital gains of Rs.610 million, recorded in the corresponding period of the previous year. The Group profit before tax (PBT) for the first nine months of the financial year 2015/16 at Rs billion, is an increase of 9 per cent over the PBT of Rs billion, which included capital gains of Rs.999 million, recorded in the same period of the previous financial year. Excluding the impact of the aforementioned capital gains, the adjusted Group PBT for the quarter and the first nine months are an increase of 11 per cent and 19 per cent, respectively, above the corresponding periods in the previous financial year. Though the profit attributable to shareholders for the quarter at Rs.3.90 billion, is a decrease of 10 per cent from the Rs.4.33 billion recorded in the corresponding period in the previous financial year, the profit attributable to shareholders for the first nine months at Rs.9.55 billion is an increase of 5 per cent over the corresponding Rs.9.13 billion recorded in the same period of the previous financial year. Excluding the impact of the aforementioned capital gain, the adjusted profit attributable to shareholders for the quarter and the first nine months are an increase of 5 per cent and 17 per cent, respectively, above the corresponding periods in the previous financial year. The revenue recorded for the quarter at Rs billion is marginally below the Rs billion recorded in the corresponding period of the previous financial year, mainly due to Union Assurance General Limited being classified as an associate company from January 2015 onwards and the steep reduction in global oil prices which impacted the Bunkering business. The cumulative revenue for the first nine months of the financial year 2015/16 at Rs billion is an increase of 2 per cent over the revenue of Rs billion recorded in the same period of the previous financial year. The Company PBT for the third quarter of 2015/16 at Rs.2.67 billion is an increase of 14 per cent over the Rs.2.33 billion recorded in the corresponding period of 2014/15. The Company PBT for the first nine months of the financial year 2015/16 at Rs billion, inclusive of a capital gain of Rs.3.10 billion arising from the share repurchase of Union Assurance PLC, is an increase of 70 per cent over the previous financial year. Transportation The Transportation industry group PBT of Rs.464 million in the third quarter of 2015/16 is a decrease of 32 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.678 million]. The decline in profitability is mainly attributable to the lower contribution from the Group s Bunkering business and to a lesser extent the Ports business. The Port of Colombo witnessed a year on year growth in excess of 5 per cent overall, which underscores the potential and augurs well for capacity led growth. The Bunkering business maintained its market share during the quarter under review. However, revenue and profitability were significantly impacted due to the steep reduction in global oil prices where inventory purchased at higher prices had to be marketed at prevailing market prices. DHL Keells recorded an improvement in performance compared to the corresponding period of the last financial year due to the continued growth in its active customer base. Leisure The Leisure industry group PBT of Rs.1.22 billion in the third quarter of 2015/16 is a decrease of 13 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.1.40 billion]. The City Hotels sector, with the exception of Cinnamon Red, witnessed a decrease in occupancies against the corresponding period of the previous year due to the increased supply of room inventory within Colombo and the lower volumes generated through the corporate and MICE segments. The Sri Lankan Resorts sector witnessed an increase in average room rates although occupancies declined marginally due to increased room inventory coupled with a decrease in arrivals from the Russian market. Tourist arrivals in to the Maldives were negatively impacted by the prevailing political uncertainties and travel advisories to the country. The Destination Management business recorded an improved performance driven by the growth of the European market. Property The Property industry group PBT of Rs.558 million in the third quarter of 2015/16 is an increase of 48 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.376 million]. The improved performance is mainly on account of the revenue recognised, post the final tranches received as at 31 December 2015, at the 7th Sense residential development project. The construction of Cinnamon Life is in progress with pre-sales of both the residential and commercial space continuing to be encouraging. However, the project has encountered some unforeseen delays and as such, the construction of Cinnamon Life is now expected to be completed in the calendar year Consumer Foods and Retail The Consumer Foods and Retail industry group PBT of Rs.1.08 billion in the third quarter of 2015/16 is an increase of 86 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.583 million]. Both the Frozen Confectionery and the Beverage businesses recorded encouraging results compared to the corresponding period of the previous financial year. The improved performance is mainly attributable to the double digit volume growth on account of positive consumer sentiment. Keells Foods Products witnessed an increase in volumes and profitability with the overall performance being in line with expectations. The Retail sector recorded a significant improvement in performance as it continued to benefit from year-on-year growth in same store sales due to a notable increase in footfall coupled with the incremental contribution from recently established outlets. Chairman s Message

4 CHAIRMAN S MESSAGE 2 Financial Services The Financial Services industry group PBT of Rs.1.09 billion in the third quarter of 2015/16 is a decline of 1 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.1.10 billion]. The decline is due to Union Assurance PLC treating the post segregated general insurance company as an associate following the sale of a 78 per cent stake in January The Financial Services industry group PBT, excluding the general insurance business, increased by 9 per cent to Rs.1.06 billion [2014/15 Q3: Rs.974 million]. The performance of the Life Insurance business was in line with expectations, with gross written premiums recording encouraging growth. Nations Trust Bank maintained robust loan growth although the reduction in net interest margins impacted the growth in profitability during the quarter under review. Information Technology The Information Technology industry group PBT of Rs.92 million in the third quarter of 2015/16 is a 24 per cent decrease over the third quarter of the previous financial year [2014/15 Q3: Rs.120 million]. The Office Automation business, which is the largest contributor to profits, witnessed a decline in its performance mainly due to lower margins on account of the depreciation of the Rupee, despite recording a growth in volumes across its three main product segments. Other, Including Plantation Services Other, comprising of the Holding Company and other investments, and the Plantation Services sector, recorded a PBT of Rs.796 million in the third quarter of 2015/16, which is a decrease of 29 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.1.11 billion]. The decline in PBT is mainly attributable to the capital gain of Rs.610 million recorded in the third quarter of the previous financial year. The performance of the Plantation Services sector was negatively impacted as tea prices continued to remain depressed. Sustainability Initiatives The Group s carbon footprint per million rupees of revenue increased by 6 per cent to 0.77 MT and the water withdrawn per million rupees of revenue increased by 11 per cent to cubic meters. The actual efficiencies achieved by the Group are not reflected in the per million rupees of revenue indicator because of the Group revenue figure being impacted by Financial Services and Transportation revenues as described before. It is of note that both Leisure and Consumer Foods & Retail industry groups, which are the largest contributors to carbon footprint and water consumption, demonstrated improvements in their per revenue performance. Group employees were provided with approximately 7.7 hours of training per employee, whilst 53 occupational injuries were reported in total during the period under review. Corporate Social Responsibility Following are some of the highlights of John Keells Foundation s (JKF) initiatives during the quarter under review: Under the John Keells English Language Scholarship Programme, a total of 1,247 school children were following classes under English for Teens courses held in various parts of the country. The Final Step University Soft Skills initiative was conducted at the Uva Wellassa University with a total of 457 undergraduates attending the workshops. A total of 5,231 persons were sensitised under the John Keells HIV and AIDS Awareness Campaign. The Group commemorated World AIDS Day falling on 1 December 2015 as well as the completion of 10 years of the John Keells HIV and AIDS Awareness Campaign by launching a comprehensive and interactive e-module on HIV & AIDS hosted on and available free of charge to any member of the public over 18 years. The John Keells Vision Project conducted four eye camps and completed 400 cataract operations. Under the school children s vision screening and spectacles subproject, 23 schools were covered, screening a total of 13,545 school children in the Colombo District. A total of 1,586 eye glasses were also donated to deserving students. Under Project WAVE (Working Against Violence through Education), which is aimed at combatting gender based violence and child abuse, a total of 282 Group staff were educated. Sessions on Domestic Violence and Abuse benefiting 270 police officers were conducted in collaboration with the Bar Association of Sri Lanka while two sessions on child abuse prevention were conducted for 165 school children to mark the international Day of the Girl Child. In keeping with its commitment to facilitating public health services, the Group released the first instalment of a Platinum sponsorship committed for the construction of an Emergency Accident Unit at the Batticaloa Teaching Hospital Warrant Subsequent to the exercise and conversion of the 2015 Warrant, 49,254,092 voting shares of the Company were listed on the Colombo Stock Exchange on 26 November Dividends The Company paid a first interim dividend for the financial year 2015/16 in November 2015, amounting to Rs.4.50 per share, which included a special dividend of Rs.3.50 per share. The payment of the special dividend was enabled by the cash inflow of Rs.4.14 billion to the Company from the share repurchase made by Union Assurance PLC. Your Board declared a second interim dividend of Rs.1.00 per share to be paid on 19 February Susantha Ratnayake Chairman 29 January 2016 John Keells Holdings PLC Interim Report Nine months ended 31st December 2015

5 CONSOLIDATED INCOME STATEMENT 3 Quarter ended 31st December Nine months ended 31st December Note Change % Change % Continuing operations Sale of goods 15,827,212 15,027, ,640,407 40,262,282 8 Rendering of services 8,878,792 9,741,773 (9) 24,743,977 26,710,478 (7) Revenue 24,706,004 24,769,265 (0) 68,384,384 66,972,760 2 Cost of sales (17,417,192) (17,880,221) (3) (48,725,656) (48,541,484) 0 Gross profit 7,288,812 6,889, ,658,728 18,431,276 7 Other operating income 649, , ,560,742 1,271, Selling and distribution expenses (952,619) (928,462) 3 (2,571,606) (2,533,716) 1 Administrative expenses (2,912,504) (2,866,579) 2 (8,143,026) (8,207,175) (1) Other operating expenses (965,665) (881,559) 10 (2,619,917) (2,483,135) 6 Results from operating activities 3,107,334 2,755, ,884,921 6,478, Finance cost (92,830) (162,458) (43) (298,440) (541,182) (45) Finance income 1,798,794 2,395,024 (25) 5,689,071 6,661,831 (15) Change in insurance contract liabilities 6 (248,037) (495,640) (50) (2,521,001) (2,988,351) (16) Share of results of equity accounted investees 739, ,752 (16) 2,379,227 2,429,742 (2) Profit before tax 5,304,964 5,374,704 (1) 13,133,778 12,040,702 9 Tax expense 7 (899,568) (702,048) 28 (2,548,311) (2,079,740) 23 Profit for the period 4,405,396 4,672,656 (6) 10,585,467 9,960,962 6 Attributable to: Equity holders of the parent 3,895,007 4,331,664 (10) 9,548,049 9,125,697 5 Non-controlling interest 510, , ,037, , ,405,396 4,672,656 (6) 10,585,467 9,960,962 6 LKR LKR 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. Financial Statements

6 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 4 Quarter ended 31st December Nine months ended 31st December Note Profit for the period 4,405,396 4,672,656 10,585,467 9,960,962 Other comprehensive income Other comprehensive income to be reclassified to income statement in subsequent periods Currency translation of foreign operations 632,627 98,130 2,234,926 79,867 Share of other comprehensive income of equityaccounted investees 147,544 80, ,898 73,709 Net gain/(loss) on available-for-sale financial assets (192,890) (192,431) (188,317) (119,940) Net other comprehensive income to be reclassified to income statement in subsequent periods 587,281 (13,309) 2,566,507 33,636 Other comprehensive income not to be reclassified to income statement in subsequent periods Revaluation of land and buildings 355, ,571 - Remeasurement gain / (loss) on defined benefit plans (7,593) 10,903 (7,593) 10,903 Net other comprehensive income not to be reclassified to income statement in subsequent periods 347,978 10, ,978 10,903 Income tax on other comprehensive income Other comprehensive income for the period, net of tax 935,259 (2,406) 2,914,485 44,539 Total comprehensive income for the period, net of tax 5,340,655 4,670,250 13,499,952 10,005,501 Attributable to: Equity holders of the parent 4,737,801 4,309,917 12,163,196 9,143,125 Non-controlling interest 602, ,333 1,336, ,376 5,340,655 4,670,250 13,499,952 10,005,501 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. John Keells Holdings PLC Interim Report Nine months ended 31st December 2015

7 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 5 As at Note ASSETS Non-current assets Property, plant and equipment 51,348,488 49,562,595 Lease rentals paid in advance 9,001,873 8,709,033 Investment property 4,608,994 4,608,941 Intangible assets 3,820,362 2,719,457 Investments in equity accounted investees 17,595,741 16,345,490 Non current financial assets 22,090,787 19,708,688 Deferred tax assets 117, ,585 Other non-current assets 32,357,524 25,830, ,941, ,592,818 Current assets Inventories 4,791,617 5,588,916 Trade and other receivables 8,920,257 10,269,689 Amounts due from related parties 8, ,085 Other current assets 2,783,128 2,398,142 Short term investments 70,765,342 67,540,668 Cash in hand and at bank 4,755,695 4,510,526 92,024,822 90,493,026 Total assets 232,966, ,085,844 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Stated capital 58,699,777 50,702,701 Revenue reserves 64,179,234 62,593,948 Other components of equity 27,432,534 24,501, ,311, ,797,927 Non-controlling interest 13,307,749 12,278,883 Total equity 163,619, ,076,810 Non-current liabilities Insurance contract liabilities 26,315,796 23,931,966 Interest-bearing loans and borrowings 14 13,825,007 4,899,576 Deferred tax liabilities 1,746,560 1,625,394 Employee benefit liabilities 1,608,358 1,494,711 Other deferred liabilities 963, ,297 Other non-current liabilities 1,524, ,967 45,983,697 32,836,911 Current liabilities Trade and other payables 10,704,933 11,267,339 Amounts due to related parties 21,922 26,488 Income tax liabilities 1,564,270 1,592,079 Short term borrowings 1,111,544 12,622,740 Interest-bearing loans and borrowings 2,855,533 4,459,213 Other current liabilities 4,243,933 3,251,881 Bank overdrafts 2,861,314 1,952,383 23,363,449 35,172,123 Total equity and liabilities 232,966, ,085,844 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 29 January 2016 J R F Peiris Group Finance Director Financial Statements

8 CONSOLIDATED STATEMENT OF CASH FLOWS 6 For the nine months ended 31st December Note CASH FLOWS FROM OPERATING ACTIVITIES Profit before working capital changes A 9,833,892 6,752,534 (Increase) / Decrease in inventories 810, ,454 (Increase) / Decrease in trade and other receivables 1,041, ,311 (Increase) / Decrease in other current assets (651,120) (883,393) (Increase) / Decrease in other non-current assets (4,230,436) (4,177,694) Increase / (Decrease) in trade and other payables 170,853 1,282,865 Increase / (Decrease) in other current liabilities 949,060 1,367,705 Increase / (Decrease) in insurance contract liabilities 2,383,830 2,862,046 Cash generated from operations 10,307,848 8,306,828 Finance income received 4,911,505 5,834,193 Finance costs paid (310,514) (530,960) Dividend received 102, ,325 Tax paid (840,932) (717,284) Super Gain Tax paid 16 (1,088,210) - Gratuity paid (119,198) (94,880) Net cash flow from operating activities 12,962,499 13,700,222 CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (3,222,043) (2,208,092) Purchase of intangible assets (37,195) (250,479) Purchase of lease rights (128,393) - Addition to investment property (53) - Acquisition of subsidiaries (net of cash acquired) B (128,838) - Increase in interest in associates (40,200) (113,090) Proceeds from sale of property, plant and equipment and intangible assets 315, ,316 Proceeds from sale of financial instruments - fair valued through profit or loss 69, ,204 Purchase of financial instruments - fair valued through profit or loss (301,821) (663,000) (Purchase) / disposal of short term investments (net) (2,306,177) 4,765,261 (Purchase) / disposal of non current financial assets (net) (3,631,932) (872,033) Grants received for investing activities 5,391 - Net cash flow from / (used in) investing activities (9,406,752) 1,258,087 CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES Proceeds from issue of shares 7,997, ,183 Direct cost on issue of shares (68,278) - Re-purchase of subsidiary shares held by NCI (23,079) - Dividend paid to equity holders of parent (6,848,386) (2,478,504) Dividend paid to shareholders with non-controlling interest (944,079) (648,774) Proceeds from long term borrowings 407, ,942 Repayment of long term borrowings (4,262,905) (4,757,339) Proceeds from/(repayment of ) other financial liabilities (net) (1,466,890) 3,369,191 Net cash flow from / (used in) financing activities (5,208,783) (2,782,301) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (1,653,036) 12,176,008 CASH AND CASH EQUIVALENTS AT THE BEGINNING 45,169,145 30,407,535 CASH AND CASH EQUIVALENTS AT THE END 43,516,109 42,583,543 ANALYSIS OF CASH AND CASH EQUIVALENTS Favorable balances Short term investments 41,621,728 39,383,426 Cash in hand and at bank 4,755,695 4,963,819 Unfavorable balances Bank overdrafts (2,861,314) (1,763,702) Total cash and cash equivalents 43,516,109 42,583,543 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. John Keells Holdings PLC Interim Report Nine months ended 31st December 2015

9 CONSOLIDATED STATEMENT OF CASH FLOWS 7 For the nine months ended 31st December Notes A. Profit before working capital changes Profit before tax 13,133,778 12,040,702 Adjustments for: Finance income (5,689,071) (6,661,831) Finance cost 298, ,182 Share-based payment expense 294, ,353 Share of results of equity accounted investees (2,379,227) (2,429,742) Depreciation of property, plant and equipment 2,075,289 2,050,047 Provision for impairment losses 110,000 - (Profit)/loss on sale of property, plant and equipment and intangible assets 69,556 (54,484) Gain on bargain purchase of a subsidiary B (1,571) - Amortisation of lease rentals paid in advance 571, ,101 Amortisation of intangible assets 234, ,506 Amortisation of other deferred liabilities (8,275) (384) Gratuity provision and related costs 219, ,408 Unrealised (gain) / loss on foreign exchange (net) 905,071 57,676 9,833,892 6,752,534 B Acquisition of subsidiary The fair value of net assets acquired at Rajawella Holdings Limited were as follows; Fair value recognised on acquisition ASSETS Inventories 13,432 Trade and other receivables 50,844 Other current assets 383,819 Intangible assets 1,404,702 Lease rentals paid in advance 263,567 Property, plant and equipment 458,913 LIABILITIES Bank overdrafts (13,838) Deferred tax liabilities (954) Other deferred liabilities (563,526) Employee benefit liabilities (8,437) Other current liabilities (52,667) Trade and other payables (4,526) Total identifiable net assets at fair value 1,931,329 Non-controlling interest measured at fair value (968,514) Gain on bargain purchase of a subsidiary (1,571) Total purchase consideration 961,244 Deferred purchase consideration (680,185) Non cash purchase consideration (166,059) Bank overdrafts acquired 13,838 Net cash outflow on acquisition of the subsidiary 128,838 The assets and liabilities as at the acquisition date are stated at their provisional fair values and may be amended in accordance with SLFRS 3 - Business combinations. Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. Financial Statements

10 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 8 Attributable to equity holders of parent Stated Revaluation Foreign Other Available Revenue Total Non- Total capital reserve currency capital for reserves controlling Equity translation reserves sale reserve interest Note reserve As at 1 April ,748,814 17,770,505 3,179, , ,488 51,303, ,897,150 11,420, ,318,090 Profit for the period ,125,697 9,125, ,265 9,960,962 Other comprehensive income ,611 - (128,086) 10,903 17,428 27,111 44,539 Total comprehensive income ,611 - (128,086) 9,136,600 9,143, ,376 10,005,501 Exercise of share options 934, , ,183 Share based payments , , ,353 Final dividend paid / (1,485,620) (1,485,620) - (1,485,620) Interim dividend paid / (992,884) (992,884) - (992,884) Subsidiary dividend to non-controlling interest , ,926 (877,700) (698,774) Acquisition, disposal and changes in non-controlling interest (5,848) (5,848) 5,848 - As at 31 December ,682,997 17,770,505 3,313, , ,402 58,134, ,924,385 11,411, ,335,849 As at 1 April ,702,701 19,752,411 3,770, , ,653 62,593, ,797,927 12,278, ,076,810 Charge relating to Super Gain Tax (1,229,022) (1,229,022) (104,520) (1,333,542) Profit for the period ,548,049 9,548,049 1,037,418 10,585,467 Other comprehensive income - 333,952 2,468,524 - (165,526) (21,803) 2,615, ,338 2,914,485 Total comprehensive income - 333,952 2,468,524 - (165,526) 8,297,224 10,934,174 1,232,236 12,166,410 Exercise of share warrants 7,972, ,972,760-7,972,760 Exercise of share options 24, ,316-24,316 Direct cost on issue of shares (66,805) (66,805) (1,473) (68,278) Re purchase of subsidiary shares held by NCI (23,079) (23,079) Share based payments , , ,306 Final dividend paid / (1,496,230) (1,496,230) - (1,496,230) Interim dividend paid / (5,352,156) (5,352,156) - (5,352,156) Subsidiary dividend to non-controlling interest , ,452 (1,191,531) (944,079) Acquisition, disposal and changes in non-controlling interest (44,199) (44,199) 1,012, ,514 As at 31 December ,699,777 20,086,363 6,239, , ,127 64,179, ,311,545 13,307, ,619,294 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. John Keells Holdings PLC Interim Report Nine months ended 31st December 2015

11 COMPANY INCOME STATEMENT 9 Quarter ended 31st December Nine months ended 31st December Note Change % Change % Continuing operations Rendering of services 250, , , , Revenue 250, , , , Cost of sales (156,715) (130,489) 20 (496,843) (361,180) 38 Gross profit 93,693 90, , ,157 (6) Dividend income 1,705,812 1,205, ,924,612 4,033, Other operating income 12 7,204 4, ,109,308 60,279 5,058 Administrative expenses (274,669) (276,398) (1) (734,571) (938,359) (22) Other operating expenses (9,507) (8,590) 11 (30,066) (27,158) 11 Results from operating activities 1,522,533 1,015, ,540,840 3,416, Finance cost (16,265) (23,800) (32) (53,242) (80,333) (34) Finance income 1,161,621 1,341,422 (13) 3,352,716 3,053, Profit before tax 2,667,889 2,333, ,840,314 6,389, Tax expense 7 (150,137) (100,900) 49 (399,817) (374,712) 7 Profit for the period 2,517,752 2,232, ,440,497 6,015, LKR LKR 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. Financial Statements

12 Company Statement of Comprehensive Income 10 Quarter ended 31st December Nine months ended 31st December Note Profit for the period 2,517,752 2,232,528 10,440,497 6,015,179 Other comprehensive income Other comprehensive income to be reclassified to income statement in subsequent periods Net gain/(loss) on available-for-sale financial assets (33,272) (175,978) (1,898) (295,308) Tax on other comprehensive income Other comprehensive income for the period, net of tax (33,272) (175,978) (1,898) (295,308) Total comprehensive income for the period, net of tax 2,484,480 2,056,550 10,438,599 5,719,871 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. John Keells Holdings PLC Interim Report Nine months ended 31st December 2015

13 Company Statement of Financial Position 11 As at ASSETS Non-current assets Property, plant and equipment 129, ,051 Intangible assets 48,973 63,283 Investments in subsidiaries 36,803,126 32,813,245 Investments in equity accounted investees 8,867,623 8,827,422 Non current financial assets 566,622 1,633,119 Other non current assets 11,876 13,807 46,427,270 43,476,927 Current assets Trade and other receivables 73,378 85,566 Amounts due from related parties 541, ,270 Other current assets 53, ,749 Short term investments 51,278,735 43,292,579 Cash in hand and at bank 147,058 43,931 52,095,003 43,805,095 Total assets 98,522,273 87,282,022 EQUITY AND LIABILITIES Stated capital 58,699,777 50,702,701 Revenue reserves 35,684,125 32,373,320 Other components of equity 1,019, ,398 Total equity 95,403,708 83,803,419 Non-current liabilities Interest-bearing loans and borrowings - 1,325,508 Employee benefit liabilities 180, ,456 Other deferred liabilities 554, ,611 1,485,964 Current liabilities Trade and other payables 345, ,822 Amounts due to related parties 130,901 2,726 Income tax liabilities 221, ,240 Interest-bearing loans and borrowings 1,432,334 1,345,276 Other current liabilities 11,536 14,883 Bank overdrafts 242,791 32,692 2,383,954 1,992,639 Total equity and liabilities 98,522,273 87,282,022 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 29 January 2016 J R F Peiris Group Finance Director Financial Statements

14 Company Statement of Cash Flows 12 For the nine months ended 31st December Note CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 10,840,314 6,389,891 Adjustments for: Finance income (3,352,716) (3,053,720) Dividend income (4,924,612) (4,033,585) Finance cost 53,242 80,333 Profit on sale of non current investments - (47,900) Profit on re purchase of shares by subsidiary 12 (3,095,541) - Depreciation of property, plant and equipment 24,345 22,159 (Profit)/ loss on sale of property, plant and equipment and intangible assets 151 (803) Amortisation of intangible assets 17,860 17,239 Share based payment expenses 96,658 81,456 Provision for impairment loss - 63,041 Gratuity provision and related costs 19,981 20,866 Profit before working capital changes (320,318) (461,023) (Increase) / Decrease in trade and other receivables 25,403 (19,972) (Increase) / Decrease in other current assets 83,011 88,651 Increase / (Decrease) in trade and other payables 13, ,720 Increase / (Decrease) in other current liabilities (3,346) 50,857 Cash generated from operations (201,515) (200,767) Finance income received 2,702,958 2,170,287 Finance costs paid (75,413) (112,216) Dividend received 4,627,724 4,638,450 Tax paid (442,050) (153,037) Super Gain Tax paid 16 (235,746) - Gratuity paid (12) (4,459) Net cash flow from operating activities 6,375,946 6,338,258 CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (27,493) (38,310) Purchase of intangible assets (3,550) (14,326) Acquisition of subsidiary (115,407) - Increase in interest in subsidiaries (4,035,137) (625,350) Increase in interest in associates (40,200) (113,090) Proceeds from sale of property, plant and equipment - 5,804 Purchase of non-current investments - (287,650) Proceeds from sale of non-current investments 4,138,239 48,000 (Purchase) / disposal of short term investments (net) (7,479,929) (11,950,704) (Purchase) / disposal of non current financial assets (net) 45,532 2,535,745 Net cash flow from/(used in) investing activities (7,517,945) (10,439,881) CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES Proceeds from issue of shares 7,997, ,183 Direct cost on issue of shares (45,560) - Dividend paid (6,848,386) (2,478,504) Repayment of long term borrowings (1,388,107) (1,311,516) Net cash flow from/(used in) financing activities (284,977) (2,855,837) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (1,426,976) (6,957,460) CASH AND CASH EQUIVALENTS AT THE BEGINNING 27,757,544 14,756,634 CASH AND CASH EQUIVALENTS AT THE END 26,330,568 7,799,174 ANALYSIS OF CASH AND CASH EQUIVALENTS Favorable balances Short term investments 26,426,301 7,820,267 Cash in hand and at bank 147,058 12,820 Unfavorable balances Bank overdrafts (242,791) (33,913) Total cash and cash equivalents 26,330,568 7,799,174 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. John Keells Holdings PLC Interim Report Nine months ended 31st December 2015

15 Company Statement of Changes in Equity 13 Stated Other Available Revenue Total capital capital for reserves Equity Note reserves sale reserve As at 1 April ,748, , ,443 24,705,039 75,130,922 Profit for the period ,015,179 6,015,179 Other comprehensive income - - (295,308) - (295,308) Total comprehensive income - - (295,308) 6,015,179 5,719,871 Exercise of share options 934, ,183 Share based payments - 255, ,353 Final dividend paid / (1,485,620) (1,485,620) Interim dividend paid / (992,884) (992,884) As at 31 December ,682, , ,135 28,241,714 79,561,825 As at 1 April ,702, , ,680 32,373,320 83,803,419 Charge relating to Super Gain Tax (235,746) (235,746) Profit for the period ,440,497 10,440,497 Other comprehensive income - - (1,898) - (1,898) Total comprehensive income - - (1,898) 10,204,751 10,202,853 Exercise of share warrants 7,972, ,972,760 Exercise of share options 24, ,316 Share based payments - 294, ,306 Direct cost on issue of shares (45,560) (45,560) Final dividend paid / (1,496,230) (1,496,230) Interim dividend paid / (5,352,156) (5,352,156) As at 31 December ,699, , ,782 35,684,125 95,403,708 Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. Financial Statements

16 Notes to the Interim Condensed Financial Statements 14 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 quarter ended 31st December External revenue 2,214,390 3,595,266 6,228,134 5,861,594 2,115,913 1,930,709 Inter segment revenue 73, ,336 7,234 10,219 38,748 56,417 Total segment revenue 2,288,349 3,812,602 6,235,368 5,871,813 2,154,661 1,987,126 Eliminations of inter segment revenue Net revenue Segment results 52,986 43,773 1,166,900 1,378, , ,244 Finance cost (5,280) (12,825) (40,526) (52,267) (7,756) (38,239) Finance income 23,078 32,674 77,735 72,441 46,288 57,603 Share of results of equity accounted investees 394, ,122 17,284 7, Eliminations / adjustments (735) (621) (2,132) (1,118) (7,467) (2,183) Profit / (loss) before tax 464, ,123 1,219,261 1,404, , ,425 Tax expense (45,766) (40,755) (130,587) (166,943) (16,178) (20,011) Profit / (loss) for the period 418, ,368 1,088,674 1,238, , ,414 Purchase and construction of PPE 47,876 21, , ,361 1, Addition to IA 1,071 3,000-79, Depreciation / impairment of PPE 21,929 25, , ,909 3,502 5,741 Amortisation / impairment of IA ,051-4,335 - Amortisation of LRPA , , Gratuity provision and related costs 2,780 2,979 25,004 20,167 2, 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) John Keells Holdings PLC Interim Report Nine months ended 31st December 2015

17 15 Consumer Foods & Retail Financial Services Information Technology Others Group Total ,257,970 7,586,296 1,931,235 2,769,378 2,360,351 2,111, , ,874 24,706,004 24,769,265 80,403 96,047-29,886 43,478 42, , , , ,251 9,338,373 7,682,343 1,931,235 2,799,264 2,403,829 2,153, ,872 1,078,941 25,122,687 25,385,516 (416,683) (616,251) 24,706,004 24,769,265 1,047, , , ,854 88, ,563 (228,250) (249,158) 3,377,845 3,033,773 (5,684) (18,087) - - (2,926) (522) (30,658) (40,518) (92,830) (162,458) 45,854 21,062 39,700 32,264 6,436 7,118 1,164,474 1,341,356 1,403,565 1,564, , , , ,752 (3,000) (3,000) (110,000) 63,041 (123,319) 56,119 1,084, ,979 1,091,535 1,097,323 91, , ,566 1,114,721 5,304,964 5,374,704 (324,977) (145,530) (118,579) (151,303) (22,143) (27,340) (241,338) (150,166) (899,568) (702,048) 759, , , ,020 69,632 92, , ,555 4,405,396 4,672, , ,745 8,856 20,121 16,002 42,159 36,998 7,031 1,090, , ,365-2,626 1, ,039 85, , ,929 22,114 40,532 44,833 43,331 32,740 32, , ,677 3,117 2,844 53,486 47,066 2,531 2,079 6,003 5,658 79,823 57, (160) , ,475 24,552 28,391 8,519 18,889 5,627 4,797 6,324 39,813 75, ,304 Financial Statements

18 Notes to the Interim Condensed Financial Statements 16 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 nine months ended 31st December External revenue 8,418,544 9,839,129 16,595,683 15,870,624 3,709,715 3,753,509 Inter segment revenue 206, ,313 25,417 33, , ,394 Total segment revenue 8,625,098 10,163,442 16,621,100 15,903,872 3,851,040 3,925,903 Eliminations of inter segment revenue Net revenue Segment result 448, ,869 2,649,186 3,163, , ,818 Finance cost (18,455) (41,601) (123,470) (187,994) (25,945) (83,818) Finance income 69, , , , , ,915 Share of results of equity accounted investees 1,400,398 1,532,723 40,140 4, Eliminations / adjustments (2,205) (1,865) (127,639) (3,356) (13,733) (6,553) Profit / (loss) before tax 1,897,785 1,725,806 2,657,439 3,215,532 1,034, ,362 Tax expense (147,503) (99,727) (326,150) (372,627) (39,363) (57,299) Profit / (loss) for the period 1,750,282 1,626,079 2,331,289 2,842, , ,063 Purchase and construction of PPE 69,652 61,421 2,195,037 1,380,301 8,742 1,221 Addition to IA 1,071 3, , Depreciation / impairment of PPE 62,861 74,035 1,140,749 1,032,725 6,344 17,337 Amortisation / impairment of IA 900 6,902 30,153-4,335 - Amortisation of LRPA , , Gratuity provision and related costs 8,336 8,982 79,784 70,415 7, 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) John Keells Holdings PLC Interim Report Nine months ended 31st December 2015

19 17 Consumer Foods & Retail Financial Services Information Technology Others Group Total ,362,517 21,790,803 5,269,084 7,626,565 6,061,678 5,376,451 1,967,163 2,715,679 68,384,384 66,972, , ,359-81, , , , ,065 1,230,283 1,496,430 26,578,401 22,072,162 5,269,084 7,707,703 6,200,934 5,497,364 2,469,010 3,198,744 69,614,667 68,469,190 (1,230,283) (1,496,430) 68,384,384 66,972,760 2,906,482 1,574, , , , ,347 (549,788) (461,620) 7,313,653 6,437,592 (19,676) (69,940) (4) (209) (6,993) (9,413) (103,897) (148,207) (298,440) (541,182) 111,084 56,441 93,066 83,978 18,604 22,991 3,361,400 3,061,072 3,990,170 3,715, , , ,379,227 2,429,742 2,745 (9,000) (110,000) 19,881 (250,832) (893) 3,000,635 1,551,534 1,763,556 1,888, , ,925 2,597,715 2,471,126 13,133,778 12,040,702 (841,556) (412,155) (323,762) (405,433) (47,485) (63,353) (822,492) (669,146) (2,548,311) (2,079,740) 2,159,079 1,139,379 1,439,794 1,482, , ,572 1,775,223 1,801,980 10,585,467 9,960, , ,090 23,587 67,081 64,590 73,836 44,362 89,142 3,222,043 2,208,092 1,224 22,216 16,912-14,438 4,900 3,550 14,326 37, , , ,539 68, , , ,269 95,174 92,819 2,075,289 2,050,047 9,023 8, , ,197 8,090 8,404 17,860 17, , , , ,101 65,281 84,924 18,667 36,848 14,160 14,722 25,816 42, , ,408 Financial Statements

20 Notes to the Interim Condensed Financial Statements 18 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 475, ,117 33,688,373 32,758,685 2,283,049 1,836,385 Lease rentals paid in advance - - 8,825,516 8,667, ,473 - Investment property 425, ,000 1,778,900 1,778,900 4,571,888 4,571,836 Intangible assets 5,921 5, , ,036 1,400,367 - Non-current financial assets 46,922 41,296 5,389,925 4,739, , ,633 Other non-current assets 5,164 6,037 15,092 13,899 32,298,998 25,804,080 Segment non-current assets 958, ,200 50,069,689 48,360,284 41,252,773 32,314,934 Investments in equity accounted investees 11,929,873 11,153, , , Deferred tax assets Goodwill Eliminations / adjustments Total non-current assets Inventories 318, , , , ,543 1,764,234 Trade and other receivables 892,963 1,485,618 2,736,700 2,947,519 1,205,767 2,852,536 Short term investments 1,862,258 2,417,409 6,795,133 7,338,354 2,459,797 3,477,734 Cash in hand and at bank 565, ,287 1,514,039 2,184,796 1,412,428 1,285,332 Segment current assets 3,638,906 4,133,987 11,405,147 12,771,060 5,277,535 9,379,836 Other current assets Eliminations / adjustments Total current assets Total assets Insurance contract liabilities Interest bearing loans and borrowings - - 7,584,086 7,597,031 11,123, ,057 Employee benefit liabilities 70,154 64, , ,510 42,660 36,198 Other deferred liabilities ,825 77, ,027 - Other non-current liabilities ,817 67,919 1,325, ,461 Segment non-current liabilities 70,154 64,749 8,272,382 8,235,386 13,053, ,716 Deferred tax liabilities Eliminations / adjustments Total non-current liabilities Trade and other payables 925, ,206 2,674,980 3,273, ,304 2,100,506 Short term borrowings 1,030,841 1,153,137 2,183,020 2,664, ,000 11,478,414 Interest bearing loans and borrowings - - 1,109,600 1,243, ,184 1,686,388 Bank overdrafts 185, , , , , ,452 Segment current liabilities 2,142,176 2,061,908 6,595,713 7,810,460 1,646,109 15,763,760 Income tax liabilities Other current liabilities Eliminations / adjustments Total current liabilities Total liabilities Total segment assets 4,597,859 5,115,187 61,474,836 61,131,344 46,530,308 41,694,770 Total segment liabilities 2,212,330 2,126,657 14,868,095 16,045,846 14,699,961 16,755,476 Note : All values are in LKR '000s, unless otherwise stated. The above figures are not audited. John Keells Holdings PLC Interim Report Nine months ended 31st December 2015

21 19 Consumer Foods & Retail Financial Services Information Technology Others Group Total ,728,048 6,517,850 1,530,335 1,222, , ,939 1,253,922 1,288,843 46,196,997 44,435, ,148 43,029 9,131,137 8,710,123 94,457 94, ,000,498 3,000,300 9,870,743 9,870,493 33,169 40,968 1,093,826 1,237,546 25,339 18,991 48,973 63,282 2,979,478 1,768, , ,850 20,828,309 17,657,947 37,555 29, ,722 1,659,248 27,501,455 24,359, , ,061 52,938 64,707 4,830 6,243 21,585 19,628 32,723,147 26,195,655 7,341,238 7,064,186 23,505,408 20,182, , ,223 4,969,848 6,074, ,402, ,340, ,230,717 4,857, ,595,741 16,345, , , , ,884 (6,015,813) (5,152,221) 140,941, ,592,818 3,064,449 2,602,934 9,681 6, , , , ,793 4,822,601 5,622,641 2,198,538 1,891, , ,051 1,976,110 1,664, , ,312 10,399,772 11,871,009 2,296, ,708 6,866,277 11,639, , ,128 51,884,456 43,534,137 72,994,316 70,241, , , , , , , , ,527 4,741,010 4,497,316 7,856,795 5,750,740 7,923,635 12,442,273 3,772,684 3,326,917 53,082,997 44,427,769 92,957,699 92,232,582 2,783,128 2,398,142 (3,716,005) (4,137,698) 92,024,822 90,493, ,966, ,085, ,315,796 23,931, ,315,796 23,931, , , ,517 43, ,819 1,337,508 19,240,791 9,555, , , , ,039 90,634 85, , ,903 1,608,358 1,494,711 26,118 24, ,373 1, , , , , ,524, , , ,540 26,439,835 24,047, , , ,504 1,603,704 49,653,606 35,868,321 1,746,560 1,625,394 (5,416,469) (4,656,804) 45,983,697 32,836,911 4,500,635 3,571,821 1,287,756 1,244,157 1,618,448 1,244, , ,702 12,213,196 12,752, ,063 26,690 12,074 22,074 3,361,998 15,344, , , ,317 29,403 1,432,334 1,348,418 2,855,533 4,459, , ,576 95,539 80, ,973 19, ,998 51,063 2,861,314 1,952,384 5,442,084 4,276,661 1,383,295 1,324,250 1,877,801 1,319,775 2,204,863 1,952,257 21,292,041 34,509,071 1,564,270 1,592,079 4,243,933 3,251,881 (3,736,795) (4,180,908) 23,363,449 35,172,123 69,347,146 68,009,034 15,198,033 12,814,926 31,429,043 32,625,196 4,077,732 3,689,140 58,052,845 50,502, ,360, ,572,662 6,173,812 5,074,201 27,823,130 25,371,255 1,986,952 1,447,996 3,181,367 3,555,961 70,945,647 70,377,392 Financial Statements

22 Notes to the Interim Condensed Financial Statements 20 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 31 December 2015, 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 9 months ended 31 December 2015 were authorised for issue by the Board of Directors on 29 January 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 (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. John Keells Holdings PLC Interim Report Nine months ended 31st December 2015

23 7 Tax Expense For the nine months ended 31st December Group Company In LKR '000s Income statement Current income tax 2,406,028 1,955, , ,712 Deferred tax charge/(reversal) 142, , ,548,311 2,079, , ,712 Other comprehensive Income Deferred tax charge/(reversal) Related Party Transactions For the nine months ended 31st December Group Company In LKR '000s Transactions with related parties Subsidiaries (Purchase) / Sale of goods - - (1,495) (2,064) (Receiving) / Rendering of services , ,035 Rent received / (paid) - - (25,693) (26,497) Joint Ventures (Purchase) / Sale of goods 7,410 3, (Receiving) / Rendering of services 230, , , ,999 Associates (Purchase) / Sale of goods 33,839 13, (Receiving) / Rendering of services (35,718) (18,826) 8,957 6,641 Interest received / (paid) 33,271 43, Key management personnel (KMP) (Purchase) / Sale of goods Close family members of KMP (Purchase) / Sale of goods Companies controlled and jointly controlled by KMP and their close family members of KMP (Purchase) / sale of goods Post employment benefit plan Contributions to the provident fund 193, ,090 45,719 36,612 Financial Statements