Earnings Review - Q3 FY 16

65, Braybrooke Place, Colombo 2, Sri Lanka

research@bartleetreligare.com, +94 11 5220200

15 March 2016

John Keells Holdings PLC (JKH : LKR 150.50)

BRS Research
Head of Research - Nikita Tissera
Senior Research Analyst - Jennita Fernando

Short term volatility provides a better buying window : BUY

JKHs Q3 FY 16 PAT dropped 11.1% YoY owing to a ~24% decline in finance income with flat
core earnings. However EBIT rose 12.8% YoY to LKR 3.11bn steered by the performance of the
CF & R and property sectors while all other sectors dropped YoY. Group EBIT margin edged up
to 12.3% from 11.1% a year earlier, while GP margin improved to 29.5% from 27.8% YoY. Despite being the peak season for tourism, lower occupancies nagged the leisure sector with
increased room inventory in the competitive space. Continuing the high growth trajectory
was the CF & R sector with an 80.1% YoY EBIT growth aided by volume growth in frozen confectionery and increased footfall in retail outlets. Transportation sector (bunkering) top line
dropped 50.3% and EBIT by 62% as crude inventory bought on higher prices, eroded margins.
We have lowered the SOTP valuation to LKR 196 on lower outlook and higher risk free rates.
However, the market selloff causing a ~17% fall in the stock price since the last review, we
believe provides a better buying window as the intrinsic value remains intact. We maintain
BUY.
All figures in LKR 'mn
Revenue
Revenue growth (%)

2013
85,408
9.9%

Gross profit margin (%)

26.8%

EBIT recurring

9,204

2014
86,706
1.5%
26.1%
10,439

2015
91,582
5.6%
27.7%
10,636

2016E
92,508
1.0%
28.5%
12,296

2017E
98,745

2018E
108,268

6.7%
28.0%
10,998

9.6%
28.0%

10.8%

12.0%

11.6%

13.3%

11.1%

10.9%

BRS EPS unadjusted (LKR)

14.11

12.61

14.44

12.54

11.94

11.39

BRS EPS as adjusted (LKR)

12.04

10.57

11.37

14.47

11.94

11.39

NAV per share (LKR)

27.5%

-12.2%

7.6%

27.3%

-17.5%

-4.6%

104.65

132.18

138.73

129.71

133.06

139.00

DPS (LKR)

3.50

3.50

3.50

5.50

6.00

7.00

Dividend yield (%)

1.4%

1.5%

1.8%

3.7%

4.0%

4.7%

P/E (x)

Equity Value
(LKR 'mn)

Sector

Valuation Method

Transportation

25,235

Leisure

27,496

DCF & DDM

DCF

Property

34,198

Net Book Value

Consumer foods & retail

28,605

DCF

Financial services

14,717

Market cap and Residual Income

IT

3,826

DCF

Plantation & Other

6,098

Net Book Value

Non operating assets

2,781

Book value

Cash & cash equivalents

4,756

Financial Investments

92,856

Debt

(20,653)

Waterfront project - hotel project

6,473

Equity value

226,388

Target Price

195.77

DCF

11,774

EBIT margin (%)

BRS EPS growth (%)

JKH- SOTP valuation

20.5 x

21.5 x

17.5 x

10.4 x

12.6 x

13.2 x

P/BV (x)

2.4 x

1.7 x

1.4 x

1.2 x

1.1 x

1.1 x

ROE %

14.7%

10.6%

9.9%

9.8%

8.9%

8.4%

Source: Company data and BRS Research

CF & R sector Continues to be the star

The Groups main top line contributor achieved a 22% YoY growth to LKR 9.26bn in Q3 FY 16
with a 37% contribution. The sector EBIT grew 80.1% YoY to LKR 1.04bn contributing 32%. Volume growth (25%-30%) in the ice cream and beverage segment and processed meats, coupled
with same store sales and sales from three outlets opened in the quarter, aided in the sector
performance. Sector EBIT margin improved from 7.6% in Q3 FY 15 to 11.3% in Q3 FY 16. We
expect the CF & R sector to continue to be the prime top line contributor (~41%) and second
largest contributor to EBIT (~35%) in the forecast period.
Leisure sector competition pulls down both occupancies and ARRs in peak season
Leisure sector EBIT dropped 15.4% YoY to LKR 1.17bn in Q3 FY 16. Sector performance was
impacted during the quarter as increased room inventory by competitors, brought down occupancies and ARRs of both city hotels and resorts. We have brought down ARRs in city hotels to
USD 134 (FY 2015 USD 139) and occupancies to 65% (FY 2015 68%) in FY 2016E, given the
impact from the last nine months. In the resorts segment, SL segment ARRs are brought down
to USD 83 (FY 2015 USD 110) and occupancies to 76% (FY 2015- 77%) while MD segment
ARRs are at USD 296 (FY 2015- USD 333) and occupancies at 82% (FY 2015 89%). However, we
expect the Leisure sector to dominate group bottom line with a ~39% contribution in the forecast period.
Valuation: upside expands as stock price falls 16% YTD ; maintain BUY
Our SOTP based valuation took a hit to LKR 196 mainly by the rise in risk free rate by 157 basis
points since the last review. We have arrived at an Enterprise value of LKR 226.4bn with a 30.1%
upside including the Cinnamon Life hotel project. On the existing business, our SOTP valuation is at LKR 190 with a 26.4% upside. The current chaos offers a better window to the patient
value investor.
For analyst certification and other important disclosures, please refer to the Disclosure and
Disclaimer section at the end of this report.

Trading snapshot
Market cap (LKR mn)

179,000

Market cap (USD mn)

1,226

Outstanding equity shares (mn)

1,189

Public Holding (%) -Dec '15

98.49%

52-week High/Low (LKR)

198.40/150.50

YTD ASPI return (%)

-13.27%

YTD Stock return (%)

-15.50%

JKH Price Vs ASPI Movement

ASPI

JKH (LKR)
ASPI

Closing prices

8,000

300

7,000

270

6,000

240

5,000

210

4,000

180

3,000
Jan-14

150
Jun-14

Nov-14

Apr-15

Sep-15

Mar-16

1%

14,669

2018E

2018E

PATMI Trend

15%
11,808

-5%

2013

2014

1%

11%

Page 1
2015

2016E

2017E

Company Information Note

65, Braybrooke Place, Colombo 2, Sri Lanka
research@bartleetreligare.com, +94 11 5220200

15 March 2016

Year Ending 31st March

John Keells Holdings PLC (JKH)

Company profile
JKH is the largest listed conglomerate in the
Colombo Stock Exchange in terms of free
float adjusted market capitalization. The diversified conglomerates business interests
primarily span over transportation, leisure,
property, consumer foods & retail, financial
services, information technology and plantation & others. The company has started construction work on its USD 820mn Waterfront
project, branded as Cinnamon Life, planned
to be completed by 2019.
Revenue LKR 'bn % Growth (2013-18E)
10%
2%

85

6%

108

7%

1%

2013

2014

2015

2016E

2017E

2018E

11.39

Summary Information
BRS EPS as adjusted (LKR)

12.04

10.57

11.37

14.47

11.94

BRS EPS growth (%)

27.5%

-12.2%

7.6%

27.3%

-17.5%

P/E (x)

20.5 x

21.5 x

17.5 x

10.4 x

12.6 x

13.2 x

-4.6%

Reported EPS adjusted for split (LKR)

13.76

12.61

14.44

na

na

na

Sector PE (x)

25.2 x

21.5x

20.1x

na

na

na

P/E on reported EPS (x)

18.0 x

18.0 x

13.8 x

na

na

na

104.65

132.18

138.73

129.71

133.06

139.00

P/BV (x)

2.4 x

1.7 x

1.4 x

1.2 x

1.1 x

1.1 x

Sector PBV (x)

2.3 x

1.9x

1.7x

na

na

na

DPS (LKR)

3.50

3.50

3.50

5.50

6.00

7.00

NAV per share (LKR)

Dividend yield (%)

1.4%

FCFF (LKR mn)

10,350

FCFE (LKR mn)

11,523

1.5%

1.8%

3.7%

4.0%

4.7%

5,241

18,420

10,965

(2,838)

(9,695)

4,738

14,594

11,470

9,926

7,013

CFPS (LKR)

(3.44)

14.74

14.86

1.60

6.51

(5.09)

P/CFPS (x)

nm

15.4 x

13.4 x

nm

23.1 x

nm

247.00

227.00

199.40

150.50

150.50

150.50

Mkt price adjusted for splits

858

930

993

1,189

1,288

1,288

Average mkt cap (LKR mn)

Weighted average shares (mn)

212,001

211,060

198,067

178,981

193,806

193,806

Enterprise value (LKR mn)

171,033

119,052

78,342

49,013

63,851

81,186

2.0 x

1.4 x

0.9 x

0.5 x

0.6 x

0.7 x

14.6 x

9.0 x

5.5 x

3.1 x

4.5 x

5.4 x

Revenue

85,408

86,706

91,582

92,508

98,745

108,268

Gross profit

22,873

22,604

25,391

26,321

27,649

30,315

EBITDA recurring

11,697

13,292

14,352

15,963

14,158

14,897

Depreciation and amortisation

(2,494)

(2,853)

(3,716)

(3,666)

(3,160)

(3,123)

9,204

10,439

10,636

12,296

10,998

11,774

8,122

7,389

(668)

(505)

EV/Sales
EV/EBITDA
Income Statement (LKR mn)

EBIT recurring
Interest income

4,770

5,783

Interest expense

(1,081)

(1,224)

Share of associates

3,369

2,964

3,296

Change in fair value of investment property

2,012

470

49

306

493

1,439

69

Exceptionals/non-recurrings

6,367

6,781

(1,408)

(2,677)

3,088

3,101

3,297

Tax expense

(2,185)

(2,362)

(3,330)

(3,818)

(2,881)

(2,876)

Net income

16,299

13,175

12,465

14,307

15,930

16,177

Minorities & preference dividends

1,368

1,237

1,397

1,579

1,633

1,630

Profit attributable to equity holders

11,808

11,229

12,909

14,351

14,544

14,669

30,141

60,159

72,051

79,080

87,467

80,915

3,999

6,966

5,589

6,272

6,703

7,314

Trade receivables

12,775

12,147

10,270

11,579

11,344

12,378

Fixed assets

49,273

47,406

49,563

51,555

52,050

50,940

2,690

2,472

2,719

3,820

3,820

3,820

Statement of Financial Position (LKR mn)

Cash and cash equivalents
Inventories

2013

2014

2015

2016E

2017E

2018E

2018E

Goodwill
Intangible assets

LKR

DPS and Payout Ratio %

7.00

70%

Associates

15,724

15,049

16,345

18,305

21,406

24,703

Shortterm investments

26,586

54,360

67,541

70,765

70,765

70,765

159,118

201,581

218,086

246,080

276,214

300,232

14,608

14,236

11,267

15,922

17,222

19,107

Interest bearing debt -short term

8,259

16,170

19,034

6,828

6,828

6,828

Interest bearing debt -long term

11,858

9,969

4,900

17,766

29,335

43,767

Total assets
Trade payables

60%

6.00

50%

5.00
4.00

40%

3.00

30%

2.00

20%

Total liabilities

57,933

67,263

68,009

78,236

91,341

108,074

Shareholders equity

89,819

122,897

137,798

154,257

171,353

178,991

Minorities

11,366

11,421

12,279

13,588

13,520

13,167

101,185

134,318

150,077

167,844

184,873

192,158

Total equity
Net debt (cash)

(10,024)

(34,020)

(48,117)

(54,485)

(51,304)

(30,319)

Total capital employed

121,302

160,457

174,011

192,439

221,036

242,754

7,973

20,855

14,761

(379)

(9,958)

(7,202)

1,750

(3,815)

(16,618)

(26,169)

Casf flow (LKR mn)

Cash flow from operations
Net working capital

2013

2014

2015
DPS

2016E

2017E

2018E

Capital expenditure
Free cash flow

Payout ratio

Investing cash flows

ROCE

ROCE & ROE Trends

9.0%

ROCE

8.0%

ROE

ROE
18.0%
16.0%
14.0%

6.0%

12.0%

5.0%

10.0%

4.0%

8.0%
6.0%

3.0%
2013

2014

2015

2016E

2017E

2018E

Source: JKH Annual Reports and BRS Research

92
(5,170)

(3,799)

(2,999)

(4,214)

(3,655)

(2,013)

9,398

4,174

17,855

10,547

(4,034)

(11,971)

(1,255)

(10,399)

(3,655)

(2,013)

954

7,997

(8,982)

(7,726)

(9,014)
14,433

(16,199)

(19,710)

Equity capital

1,370

23,268

Dividends paid

(3,822)

(3,865)

(4,269)

(1,571)

(4,390)

86

11,569

Other financing cash flows

Net borrowings

(1,320)

25,446

(4,838)

(2,457)

12,421

5,418

Net cash flow

(2,951)

13,708

14,762

1,905

8,388

(6,552)

221

Key ratios
Revenue growth (%)

7.0%

14,568

9.9%

1.5%

5.6%

1.0%

6.7%

EBIT growth (%)

37.9%

13.4%

1.9%

15.6%

-10.6%

7.1%

Gross profit margin (%)

26.8%

26.1%

27.7%

28.5%

28.0%

28.0%

EBITDA margin (%)

13.7%

15.3%

15.7%

17.3%

14.3%

13.8%

EBIT margin (%)

10.8%

12.0%

11.6%

13.3%

11.1%

10.9%

Net profit margin

13.8%

13.0%

14.1%

15.5%

14.7%

13.5%

ROCE %

8.3%

7.4%

6.4%

6.7%

5.3%

5.1%

ROE %

14.7%

10.6%

9.9%

9.8%

8.9%

8.4%

Payout ratio (%)

29.1%

33.1%

30.8%

38.0%

50.2%

61.5%

Debt/equity (%)

19.9%

19.5%

15.9%

14.7%

19.6%

26.3%

Net debt/equity (%)

-9.9%

-25.3%

-32.1%

-32.5%

-27.8%

-15.8%

Gearing (%)

16.6%

16.3%

13.8%

12.8%

16.4%

20.8%

Interest cover (x)

8.5 x

8.5 x

15.9 x

24.4 x

7.8 x

4.4 x

Page 2

9.6%

BRS Equity Research

Q3 FY 16 Performance
Revenue

Sector
LKR 'mn

Q3 FY 16

Net profit (inclu. Associates stake)

Q3 FY 15 Growth % Contribution

Q3 FY 16

Q3 FY 15 Growth % Contribution

Transportation

2,214

3,595

-38.4%

8.9%

418

637

-34.4%

9.0%

Leisure

6,228

5,861

6.3%

25.1%

1,089

1,238

-12.1%

23.3%

Property

2,116

1,931

9.6%

8.5%

542

356

52.0%

11.6%

Consumer foods & retail

9,258

7,586

22.0%

37.4%

760

437

73.6%

16.3%

Financial services

1,931

2,769

-30.3%

7.8%

973

946

2.8%

20.8%

Information Technology

2,360

2,111

11.8%

9.5%

70

93

-25.0%

1.5%

598

915

-34.6%

2.4%

554

965

-42.5%

11.9%

24,706

24,769

4,405

4,673

Plantation & Other

Total

Segmental Net Revenue Composition

FY 2015

FY 2016E
Other
3%

Other
4%
IT
8%

Financial
Services
10%

Financial
Services
7%

Transport
14%

IT
9%

Transport
10%

Leisure
27%

Leisure
25%
CF & R
32%

CF & R
39%

Property
5%

Property
6%

Segmental EBIT Composition

FY 2015
IT
3%

FY 2016E

Plantations
Transport
-3%
2%

Financial
Services
19%
Leisure
46%

CF & R
21%

IT
2%

Plantations
-6%

Financial
Services
18%

Leisure
36%

CF & R
34%
Property
12%

www.bartleetreligare.com

Transport
4%

Property
10%

Page 3

BRS Equity Research

Valuation

Sector

SOTP valuation suggest a

target price of LKR 196 inclusive
of the waterfront hotel project

Equity Value
(LKR 'mn)

Valuation Method

Transportation

25,235

DCF & DDM

Leisure

27,496

DCF

Property

34,198

Net Book Value

Consumer foods & retail

28,605

DCF

Financial services

14,717

Market cap and Residual Income

IT

3,826

DCF

Plantation & Other

6,098

Net Book Value

Non operating assets

2,781

Book value

Cash & cash equivalents

4,756

Financial Investments

92,856

Debt

(20,653)

Waterfront project - hotel project

6,473

Equity value

226,388

Target Price

195.77

DCF

Valuation assumptions

Our DCF based valuations are based on the following assumptions:

Terminal growth rate - 3% (except for CCS and KFP which is 5%)
Risk free rate - 11.2% (previous - 9.63%)
Beta - 1
Equity risk premium - 5%

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Page 4

BRS Equity Research

Financial Analysis
Income statement - John Keells Holdings PLC
Year Ending 31st March

2013

2014

2015

2016E

2017E

2018E

All numbers in LKR 'mn

Net turnover

85,408

86,706

91,582

92,508

98,745

YoY growth %

9.9%

1.5%

5.6%

1.0%

6.7%

9.6%

22,873

23,994

25,391

26,321

27,649

30,315

Gross Profit

108,268

YoY growth %

25.8%

4.9%

5.8%

3.7%

5.0%

9.6%

Gross profit margin

26.8%

27.7%

27.7%

28.5%

28.0%

28.0%

Other operating Income

1,501

2,492

3,077

3,891

1,387

742
(19,456)

(15,171)

(16,246)

(16,393)

(17,846)

(18,069)

YoY growth %

Total SG & A expenses

19.7%

7.1%

0.9%

8.9%

1.2%

7.7%

Total depreciation

(3,177)

(3,488)

(3,716)

(3,666)

(3,160)

(3,123)

EBIT including non-recurring items

9,204

10,240

12,075

12,366

10,998

11,774

306

493

1,439

69

EBIT excluding non-recurring items

Non-recurring items

8,898

9,747

10,636

12,296

10,998

11,774

YoY growth %

33.3%

9.5%

9.1%

15.6%

-10.6%

7.1%

EBIT margin
EBITDA excluding non-recurring items

10.4%

11.2%

11.6%

13.3%

11.1%

10.9%

12,075

13,235

14,352

15,963

14,158

14,897

YoY growth %

29.7%

9.6%

8.4%

11.2%

-11.3%

5.2%

EBITDA margin

14.1%

15.3%

15.7%

17.3%

14.3%

13.8%

Finance Income / Cost

3,689

4,554

7,454

6,884

4,959

4,104

Change in fair value of investment property

2,012

470

49

Change in insurance contract liabilities

(2,608)

(3,033)

(3,799)

(2,521)

Share of results of associates

3,369

3,089

3,296

3,088

3,101

3,297

Recurring profit before tax

15,360

14,827

17,637

19,748

19,058

19,175

Income tax expense

(2,185)

(2,362)

(3,330)

(3,818)

(2,881)

(2,876)

Profit after taxation

13,175

12,465

14,307

15,930

16,177

16,299

25.8%

-5.4%

14.8%

11.3%

1.5%

0.8%

YoY growth %

11,808

11,229

12,909

14,351

14,544

14,669

Minority interest

Profit attributable to equityholders

1,368

1,237

1,397

1,579

1,633

1,630

Earnings per share - unadjusted (1)

14.11

12.61

14.44

12.54

11.94

11.39

Earnings per share - BRS adjusted (2)

12.04

10.57

11.37

14.47

11.94

11.39

Source: Company Financial Reports and BRS Equity Research

Note 1: Based on earnings as reported (unadjusted for non-recurring) share data adjusted for splits
Note 2: EPS adjusted for share split, consolidations, rights issue and non recurring information

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Page 5

BRS Equity Research

Financial Analysis

Statement of Financial Position - John Keells Holdings PLC

As at 31st March

2013

2014

2015

2016E

2017E

2018E

All numbers in LKR 'mn

Non Current Assets
49,273

47,406

49,563

51,555

52,050

Lease rentals paid in advance

Property Plant & Equipment

9,514

9,096

8,709

9,002

9,002

9,002

Investment property

9,295

4,440

4,609

4,609

4,609

4,609

Intangible assets

2,690

2,472

2,719

3,820

3,820

3,820

Investment in associates & joint ventures

15,724

15,049

16,345

18,305

21,406

24,703

Other non current financial assets

18,817

21,069

19,709

22,091

22,091

22,091

212

132

109

118

118

118

3,576

19,710

25,830

36,745

54,295

80,620

109,100

119,375

127,593

146,245

167,391

195,903

Investment in subsidiaries

Deferred tax assets

Other non current assets

50,940

Current Assets
Inventories
Trade & other receivables
Amonuts due from related parties
Other current assets
Short term investments
Cash and Cash Equivalents

Total Assets

3,999

6,966

5,589

6,272

6,703

7,314

12,775

12,147

10,270

11,579

11,344

12,378

207

334

185

2,896

2,601

2,398

2,895

3,300

3,713

26,586

54,360

67,541

70,765

70,765

70,765

3,555

5,799

4,511

8,314

16,702

10,150

50,018

82,206

90,493

99,835

108,823

104,329

159,118

201,581

218,086

246,080

276,214

300,232

26,480

49,749

50,703

58,700

67,279

67,279

42,704

51,304

62,594

68,124

76,642

84,280

Equity and Reserves

Stated Capital
Capital reserves
Revenue reserves
Other components of equity

20,635

21,845

24,501

27,433

27,433

27,433

Shareholders funds

89,819

122,897

137,798

154,257

171,353

178,991

Non controlling interests

11,366

11,421

12,279

13,588

13,520

13,167

101,185

134,318

150,077

167,844

184,873

192,158

Insurance provisions

17,388

20,273

23,932

26,316

26,316

26,316

Borrowings

11,858

9,969

4,900

17,766

29,335

43,767

Total equity
Non Current Liabilities

Deferred tax liabilities

1,222

1,328

1,625

1,747

1,747

1,747

Employee benefit liabilities

1,385

1,502

1,495

1,644

1,779

1,900

Other deferred liabilities

Othe non current liabilities

50

90

103

964

964

964

530

393

782

1,524

1,524

1,524

32,434

33,554

32,837

49,961

61,664

76,218

14,608

14,236

11,267

15,922

17,222

19,107

15

14

26

22

22

22

981

908

1,592

2,126

1,995

1,960

Current Liabilities
Trade and other payables
Amonts due to related parties
Income tax payable
Short term borrowings

1,854

9,752

12,623

1,112

1,112

1,112

Current portion of interest bearing borrowings

3,049

3,664

4,459

2,856

2,856

2,856

Other current financial liabilities

Othe current liabilities
Dividend payable
Bank overdrafts

Total Liabilities
Total Equity and Liabilities

1,636

2,380

3,252

3,377

3,609

3,938

3,356

2,754

1,952

2,861

2,861

2,861

25,499

33,709

35,172

28,275

29,677

31,855

57,933

67,263

68,009

78,236

91,341

108,074

159,118

201,581

218,086

246,080

276,214

300,232

Source: Company Financial Reports and BRS Equity Research

www.bartleetreligare.com

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BRS Equity Research

Financial Analysis
Cash flow - John Keells Holdings PLC
Year Ending 31st March

2013

2014

2015

2016E

2017E

2018E

All numbers in LKR 'mn

Cash flow from operating activity
EBIT

6,595

7,207

8,276

9,845

10,998

11,774

Depreciation of property, plant & equipment

2,250

2,569

2,767

2,860

3,160

3,123

Impairment of property, plant & equipment

18

195

11

110

(Profit)/loss on sale of PPE

60

41

70

(Profit)/loss on sale of non current investments

(223)

(821)

(92)
(1,221)

(Profit)/loss on sale of investments in associates

Gain on bargain purchase of a subsidiary

Profit on sale of other investments

Amortisation/depreciation of leasehold property & other non-current assets

683

680

714

572

Amortisation of intangible assets

245

239

234

234

Amortisation of other deferred liabilities

Defined benefit obligation

(1)
247

(1)
262

(2)

(1)

(8)

286

298

312

312

Unrealised gain on foreign exchange

(28)

27

65

905

Share based payment expense

216

347

294

Write back of dealer deposits

Unrealised profits

Negative goodwill on acquisitions

9,846

10,614

Operating cash flow before changes in working capital

Changes in Working Capital
Cash generated from Operations
Interest received
Interest paid
Dividends received
Tax paid
Super gains tax paid
Denfined benefit obligation paid
Net Cash from Operating Activities

(0)

92
9,939

(7,202)

11,387
1,750

15,178
(3,815)

3,412

13,137

11,363

4,512

5,176

7,414

6,612

(1,068)

(1,210)

(655)

(517)

2,817

2,748

2,397

(1,514)

(1,990)

(1,294)

(1,549)

(1,088)

(117)
14,568

(163)
7,973

(144)

102

(161)

20,855

14,761

14,470

15,209

(16,618)

(26,169)

(2,148)

(10,960)

6,367

6,781

(1,408)

(2,677)

(3,012)

(2,911)

(177)

(190)

(379)

(9,958)

Investing Activities
Purchase and construction of property, plant & equipment

(5,170)

(3,799)

(2,999)

(4,214)

(3,655)

(2,013)

Addition to intangible assets

(68)

(46)

(280)

(37)

Addition to lease rights

(3)

(128)

(23)

(3)

(1)

(40)

(302)

Addition to investment property

Increase in interest in subsidiaries

(1,102)
-

Acquisition of subsidiaries

(350)

Acquisition of associates

(238)

(129)

Increase in interest in associates

(98)

(32)

Acquisition of quoted investments held for sale

Proceeds from sale of PPE/investment property

145

228

265

315

Proceeds from the demolition of PPE

Proceeds from sale of investments held for sale

860

303

506

Proceeds from sale of interest in associates

586

2,073

Proceeds from sale of interest in subsidiaries

Proceeds from sale of non current investments

138

3,461

Proceeds from sale of quoted investments held for sale

38

(1,244)

(959)

(113)

(755)

69

Purchase/disposal of other investments (net)

Proceeds from insurance claim on property, plant & equipment

Proceeds from/disposal of other non current financial assets

(4,481)

(1,683)

(4,194)

(3,632)

Proceeds from/(repayment of) short term investments (net)

(5,177)

(15,810)

3,025

(2,306)

(16,199)

(19,710)

(1,255)

Grants received for investing activities

Net cash used in investing activities

5
(10,399)

(3,655)

(2,013)

Financing Activities
Proceeds from issue of shares

1,370

23,268

7,997

Proceeds from excercising warrants

8,579

Repurchase of ordinary shares

Repurchase of subsidiary shares held by NCI

(23)

(68)

(3,476)

(7,776)

(6,027)

(7,031)
(1,983)

Proceeds from minority on issue of rights in subsidiaries

82

Direct cost on share issue

(8)

(228)

Acquisition of non controlling interest

(9)

(57)

(2,982)

(3,267)

Dividend paid to equity holders of parent

Dividend paid to minority shareholders

954

(3)

(839)

(598)

(793)

(1,206)

(1,700)

Repayment of long term borrowings

(2,948)

(4,638)

(5,405)

(5,763)

(2,750)

(2,750)

Proceeds from long term borrowings

3,169

3,067

1,015

5,849

14,319

17,183

Proceeds from/(repayment of) short term borrowings (net)

2,871

(1,467)

Net Cash in financing activities

(1,320)

845

25,446

7,898

(4,838)

(2,457)

Increase Decrease In Cash and Cash Equivalents

(2,951)

13,708

14,762

1,905

12,421

8,388

5,418

(6,552)

Source: Company Financial Reports and BRS Equity Research

www.bartleetreligare.com

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BRS Equity Research

Top 20 shareholders

Name of the shareholder

No. of shares
No.asofatshares as at
11.09.201531.12.2015

1 Broga Hill Investments Ltd

124,122,878

10.4%

2 Mr S E Captain

119,937,442

10.1%

3 Paints & General Industries Ltd

92,077,194

7.7%

4 Melstacorp (Private) Ltd

43,616,626

3.7%

5 Schroder Internaonal Selecon Fund

38,606,230

3.2%

6 Deutsche Bank AG London

35,868,199

3.0%

7 Aberdeen Global-Asian Smaller Companies Fund

30,679,913

2.6%

8 Aberdeen Global Asia Pacic Equity Fund

26,234,282

2.2%

9 HWIC Asia Fund

22,985,778

1.9%

10 Aberdeen Instuonal Commingled Funds, LLC

20,138,318

1.7%

11 Aberdeen Global-Emerging Markets Smaller Companies fund

18,932,286

1.6%

12 Mr K Balendra

18,111,218

1.5%

13 London- Edinburgh Dragon Trust PLC

15,062,970

1.3%

14 Employees Trust Fund

14,889,063

1.3%

15 Mr R S Captain

14,347,066

1.2%

16 Aberdeen Asia Pacic Equity Fund

12,497,857

1.0%

17 Caravel Fund ( Internaonal ) Ltd

11,516,814

1.0%

18 Aberdeen Global Froner Markets Equity Fund

11,316,145

1.0%

19 Mrs C S De Fonseka

11,282,940

0.9%

20 Mrs S A J De Fonseka

11,069,333

0.9%

Source : JKH interim financial statements

Source: Bloomberg

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