jkh interim june 2013
TRANSCRIPT
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I N T E R I M C O N D E N S E D F I N A N C I A L S T A T E M E N T S T H R E E M O N T H S E N D E D 3 0 T H J U N E 2 0 1 3
JOHN KEELLS
HOLDINGS PLC
Keepi ng our eye on the next l evel
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Keepi ng our eye on the next l evel
Chairmans Message 1
Consolidated Income Statement 3
Consolidated Statement o
Comprehensive Income 4
Consolidated Statement oFinancial Position 5
Consolidated Statement o
Cash Flow 6
Consolidated Statement o
Changes in Equity 8
Company Income Statement 9
Company Statement o
Comprehensive Income 10Company Statement o Financial
Position 11
Company Statement o Cash Flow 12
Company Statement o
Changes in Equity 13
Operating Segment Inormation 14
Notes to the Interim Condensed
Financial Statements 16
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Interim Financial Statements l 1
Chairmans Message Financial Inormation
CHAIRMANS MESSAGE
Dear Stakeholder,
The proft attributed to the equity holders or the frst quarter
o the fnancial year 2013/14 at Rs.1.59 billion reects a
4 per cent decrease over the corresponding period in theprevious fnancial year.
The Group proft beore tax (PBT) or the frst quarter o the
fnancial year 2013/14 at Rs.2.20 billion was a decrease o
8 per cent over the PBT o Rs.2.40 billion recorded in the
corresponding period in the previous fnancial year.
The revenue or the frst quarter o the fnancial year
2013/14 o Rs.20.01 billion remained in line with the
revenue recorded during the same period last year.
The results o the frst quarter o the fnancial year are areection o current macroeconomic challenges emanating
rom the decisive actions taken by the Government, including
the implementation o cost based electricity pricing, over the
past year to stabilise an over-heated economy and reduce
the budget defcit. Whilst these macroeconomic actors
may have a negative impact on the perormance o the
Group in the short term, we believe that your Group is well
positioned to capitalise on the emerging growth opportunities
because o its strong undamentals and we, thereore, remain
optimistic o the uture. Single digit ination, lower interest
rates and the planned mega inrastructure developmentsare expected to translate into increased demand which will
contribute positively to economic growth.
Taking this view o the uture, your Company has announced
an integrated resort development, subject to the Project
Company, Waterront Properties (Private) Limited, receiving
all the requisite approvals and your Company receiving
shareholder approval, where necessary. The Project Company
has entered into an agreement with the Board o Investment
o Sri Lanka (BOI) as a precursor to acilitating the requisite
approvals. Subsequent to the signing o the BOI agreement,
the frst Gazette as per the Strategic Development ProjectsAct was published by the Government on the 18th o July.
The Waterront Project is an integrated resort located at
Glennie Street/Justice Akbar Mawatha and consists o
multiple businesses including a luxury hotel, convention
center, entertainment and gaming acilities, international
standard shopping mall, luxury condominiums, serviced
apartments and ofce space. The concept o integrated
resorts has gained popularity, particularly in the South East
Asian region. Sri Lankas proximity to these destinations
and to key source markets strengthens its oering as an
exciting, and emerging, leisure destination in South Asia.
Transportation
The Transportation industry group PBT o Rs.748 million
in the frst quarter o 2013/14 was a decrease o 22 per
cent compared to the irst quarter o the previous inancial
year [2012/13 Q1: Rs.957 million]. The decline in PBT
was mainly on account o a lower contribution rom the
bunkering business as a result o lower volumes andreduced margins, a phenomenon experienced by the
industry globally, whilst the ports, logistics and airline
businesses also saw reductions on the back o changes
in volumes and revenues. With the completion and
commencement o operations o the South Terminal,
the capacity constraints in the Port o Colombo will be
overcome and the Port will be well geared to cater to
increased domestic and transshipment volumes.
Leisure
The Leisure industry group PBT o Rs.461 million in the
irst quarter o 2013/14 was a decrease o 29 per cent over
the irst quarter o the previous inancial year [2012/13
Q1: Rs.648 million], primarily as a result o the lower than
expected perormance o Sri Lanka Resorts with the new
resort, Cinnamon Bey, in particular, still being established
in the market. Additionally, there was an impact on lower
interest rate bearing oreign currency denominated loans
as a result o a depreciated Sri Lankan Rupee at the end
o the quarter. Whilst overall tourism arrivals to the country
continue to demonstrate growth, they have not translated
into room nights in the star category hotels. This, we
believe, is the result o a combination o the economicissues in Europe and the lack o a ocused destination
marketing and branding strategy. However, occupancy
continued to be strong in the City Hotels where we
increased our market share, while the Maldivian Resorts
sector perormed well beneitting rom higher average room
rates and increased occupancies.
Property
The Property industry group PBT o Rs.142 million in
the irst quarter o 2013/14 was an increase o 120
per cent compared to the corresponding period in the
previous inancial year [2012/13 Q1: Rs.65 million],
mainly on account o the revenue recognition cycle o the
OnThree20 development. The super-structure o the 37
storeyed towers o OnThree20 was completed during the
quarter under review while the total number o apartments
sold is in excess o 80 per cent. Construction o the Groups
newest residential apartment development, 7th Sense on
Gregorys Road, commenced during the quarter with over
50 per cent o the units sold as o-date.
Consumer Foods and RetailThe Consumer Foods and Retail industry group PBT
o Rs.249 million in the irst quarter o 2013/14 was
a decrease o 36 per cent over the irst quarter o the
previous inancial year [2012/13 Q1: Rs.393 million].
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PROGRESSIVE
2 l JOHN KEELLS HOLDINGS PLC l www.keells.com
CHAIRMANS MESSAGE
Whilst the sot drinks segment maintained its market share,
consumer demand was impacted by the adverse weather
conditions which prevailed in many parts o the country
and the lower discretionary expenditure. Although the icecream business lost volume due to the aoresaid reasons, it
increased its market share through enhanced distribution.
Keells Food Products consolidated its production by utilising
the increased capacity in the new plant in Pannala. The
Retail sector completed the roll out o its way orward
strategy in its remaining retail outlets. Most o the outlets
have witnessed growth during the quarter under review.
Financial Services
The Financial Services industry group PBT o Rs.259 million
in the irst quarter o 2013/14 was marginally higher
compared to the corresponding period last year [2012/13
Q1: Rs.257 million]. The prevailing macro-economic
conditions resulted in modest loan growth across the
banking industry. The perormance o the Bank in the irst
quarter was impacted by the planned non-recurring costs
associated with the development o its positioning strategy
which will be spread throughout this inancial year. The
proitability o the Insurance business was impacted by
higher claim ratios in the non-lie business compared to
the previous year. The Stock Broking business increased
its market share, although overall trading activity at the
Colombo Stock Exchange was relatively low.
Inormation Technology
The Inormation Technology industry group PBT o Rs.65
million in the irst quarter o 2013/14 was an increase
over the corresponding period in the previous inancial
year [2012/13 Q1: Rs.6 million]. The improvement in
perormance was driven primarily by the Business Process
Outsourcing (BPO) business on account o the expansion o
its client base. The Oice Automation business witnessed
growth as it continued to expand its range o products.
Other, including Plantation Services
Other, comprising o Plantation Services and the Corporate
Centre, recorded a PBT o Rs.275 million in the irst quarter
o 2013/14 [2012/13 Q1: Rs.72 million]. The perormance
was primarily attributed to an increase in net interest
income and a decrease in exchange losses compared to the
previous year.
Sustainability Initiatives
During the quarter, the Group took urther steps in
integrating sustainability within its business goals bybroadening the scope o impact assessment in the areas
o indirect energy consumption and other greenhouse gas
emissions.
The Group continues to track key indicators covering carbon
ootprint, water usage, waste management, employee
health & saety and sta training. The Groups overall
carbon ootprint at an estimated 18,657 MT is an increaseo 8 per cent [2012/13 Q1: 17,234 MT], while the Groups
water consumption at an estimated 414,934 cubic meters
is an increase o 4 per cent [2012/13 Q1: 399,197 cubic
meters] over the corresponding period last year, largely as
a result o the expanded reporting scope. The number o
occupational injuries in the Group during the irst quarter
increased to 63 [2012/13 Q1: 45]. The number o hours o
training provided to sta was at approximately 12 hours per
employee [2012/13 Q1: 9 hours].
Corporate Social ResponsibilityOut o 1,012 John Keells scholars o 2012/13, who
became eligible to sit or the inal examination under the
John Keells English Language Scholarship Programme, a
total o 996 children passed the inal examination.
The John Keells Foundation successully coordinated a
comprehensive industrial tour o the John Keells Group or
a group o 94 undergraduates (and 04 aculty members)
o the Faculty o Management Studies and Commerce
o the University o Jana in June 2013. The tour was
aimed at creating greater awareness o potential career
opportunities.
Under the John Keells HIV and AIDS Awareness Campaign,
a total o 1,005 persons were educated via 14 sessions
during the quarter, including corporate sta and members
o the Sri Lanka Army.
Under the John Keells Vision Project one eye camp was
held in the irst Quarter at the Navy Camp in Delt Island.
Out o a total o 500 patients registered, 70 cataract
patients were identiied o whom 56 were operated. A total
o 278 spectacles were also donated.
Under the Village Adoption Programme, initial activities
beneiting dierent community segments are underway in
certain villages o the Mullaitivu District and Trincomalee
District in the Northern and Eastern provinces o the
country.
Susantha Ratnayake
Chairman
26 July 2013
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Chairmans Message Financial Inormation
Interim Financial Statements l 3
CONSOLIDATED INCOME STATEMENT
For the three months ended 30th June Note 2013 2012 Change %
Continuing operations
Sale o goods 11,321,732 11,673,741 (3)
Rendering o services 8,690,308 8,339,141 4
Revenue 20,012,040 20,012,882 -
Cost o sales (14,955,754) (14,887,228) -
Gross proft 5,056,286 5,125,654 (1)
Other operating income 340,222 408,508 (17)
Distribution expenses (837,758) (735,308) 14
Administrative expenses (2,354,227) (2,467,344) (5)
Other operating expenses (733,646) (611,430) 20
Results rom operating activities 1,470,877 1,720,080 (14)
Finance cost (369,311) (465,485) (21)
Finance income 1,322,957 930,900 42
Net fnance income 953,646 465,415 105
Change in insurance contract liabilities 6 (926,371) (581,827) 59
Share o results o equity accounted investees 701,570 792,917 (12)
Proft beore tax 2,199,722 2,396,585 (8)
Tax expense 7 (454,473) (540,025) (16)
Proft or the period 1,745,249 1,856,560 (6)
Attributable to :
Equity holders o the parent 1,586,397 1,658,718 (4)
Non-controlling interest 158,852 197,842 (20)
1,745,249 1,856,560 (6)
Earnings per share Rs. Rs.
Basic 1.85 1.95
Diluted 1.84 1.94
Dividend per share 1.50 1.50
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above fgures are not audited.
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PROGRESSIVE
4 l JOHN KEELLS HOLDINGS PLC l www.keells.com
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the three months ended 30th June Note 2013 2012
Proft or the period 1,745,249 1,856,560
Other comprehensive income
Currency translation o oreign operations 255,915 280,110
Revaluation o land and buildings (1,865) -
Share o other comprehensive income o equity-accounted investees 194,633 316,106
Net (loss) / gain on available-or-sale fnancial assets 38,457 (371,558)
Tax on other comprehensive income 7 - -
Other comprehensive income or the period, net o tax 487,140 224,658
Total comprehensive income or the period, net o tax 2,232,389 2,081,218
Attributable to :
Equity holders o the parent 2,029,704 1,827,700
Non-controlling interest 202,685 253,518
2,232,389 2,081,218
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above fgures are not audited.
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Chairmans Message Financial Inormation
Interim Financial Statements l 5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30.06.2013 31.03.2013
ASSETSNon-current assets
Property, plant and equipment 49,190,178 49,272,979Lease rentals paid in advance 9,585,723 9,513,671Investment property 9,316,821 9,294,936Intangible assets 2,649,908 2,689,514Investments in associates 16,531,774 15,724,361Other non current fnancial assets 17,546,051 18,816,693Deerred tax assets 241,207 212,227Other non current assets 4,252,195 3,575,749
109,313,857 109,100,130
Current assetsInventories 4,083,492 3,998,900Trade and other receivables 11,851,030 12,775,046Amounts due rom related parties 75,443 207,455Other current assets 3,502,770 2,895,900Short term investments 30,256,682 26,586,054
Cash in hand and at bank 4,046,762 3,554,80453,816,179 50,018,159
Total assets 163,130,036 159,118,289
EQUITY AND LIABILITIESEquity attributable to equity holders o the parentStated capital 26,555,676 26,480,396Capital reserves - -Revenue reserves 43,052,129 42,704,203Other components o equity 21,077,878 20,634,571
90,685,683 89,819,170Non-controlling interest 11,073,976 11,366,240Total equity 101,759,659 101,185,410
Non-current liabilitiesInsurance contract liabilities 18,265,774 17,388,494Borrowings 12,347,253 11,857,764Deerred tax liabilities 1,242,864 1,222,210Employee beneft liabilities 1,422,831 1,385,072Other deerred liabilities 61,044 50,228Other non-current liabilities 533,066 530,075
33,872,832 32,433,843
Current liabilitiesTrade and other payables 13,767,823 14,608,263Amounts due to related part ies 8,521 15,280Income tax payable 1,096,296 981,013Short term borrowings 2,518,313 1,853,767Current portion o borrowings 2,928,429 3,048,936Other current liabilities 1,897,720 1,635,534Bank overdrats 5,280,443 3,356,243
27,497,545 25,499,036Total equity and l iabilities 163,130,036 159,118,289
Rs. Rs.Net assets per share 105.73 104.78
Note : All values are in Rupees 000s, unless otherwise stated.The above fgures are not audited.
I certiy that the fnancial statements comply with the requirements o the Companies Act No.7 o 2007.
M J S RajakariarGroup Financial Controller
The Board o Directors is responsible or the preparation and presentation o these fnancial statements.
S C Ratnayake J R F PeirisChairman Group Finance Director
26 July 2013
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PROGRESSIVE
6 l JOHN KEELLS HOLDINGS PLC l www.keells.com
CONSOLIDATED STATEMENT OF CASH FLOW
For the three months ended 30th June Note 2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Proft beore working capital changes A 1,558,928 2,315,541
(Increase) / Decrease in inventories (84,592) 1,347,793(Increase) / Decrease in trade and other receivables 1,132,386 438,737(Increase) / Decrease in other current assets 313,282 229,688(Increase) / Decrease in other non-current assets (676,446) (662,910)Increase / (Decrease) in trade and other payables (844,208) (471,994)Increase / (Decrease) in other current liabilities 255,802 14,136Increase / (Decrease) in insurance contract liabilities 877,280 598,136Cash generated rom operations 2,532,432 3,809,127
Finance income received 1,241,994 924,957Finance costs paid (361,788) (232,643)
Dividend received - 131,189Tax paid (1,184,895) (299,624)Gratuity paid (33,540) (14,681)Net cash ow rom operating activities 2,194,203 4,318,325
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES
Purchase and construction o property, plant and equipment (492,891) (1,057,500)Purchase o intangible assets (19,672) (3,238)Addition to investment property (21,885) (98,872)Acquisi tion o associates - (28,390)Proceeds rom sale o property, plant and equipment and intangible assets 6,351 12,841Proceeds rom sale o fnancial instruments - air valued through proft or loss 180,760 52,590Purchase o fnancial instruments - air valued through proft or loss (160,249) (84,461)
(Purchase) / disposal o short term investments (net) (85,668) (1,209,570)(Purchase) / disposal o other non current fnancial assets (net) 1,309,099 693,367Net cash ow rom / (used in) investing activities 715,845 (1,723,233)CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIESProceeds rom issue o shares 75,280 721,579Direct cost on issue o shares (707) -Acquisi tion o non-control ling interest - (516)Dividend paid to equity holders o parent (1,286,460) (1,275,977)Dividend paid to shareholders with non-controlling interest (446,253) (624,516)Proceeds rom long term borrowings 1,447,174 193,898Repayment o long term borrowings (1,271,362) (875,654)Proceeds rom/(repayment o) other fnancial liabilities (net) 664,546 (929,057)
Net cash ow rom / (used in) fnancing activities (817,782) (2,790,243)NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 2,092,266 (195,151)CASH AND CASH EQUIVALENTS AT THE BEGINNING 16,860,241 21,518,594
CASH AND CASH EQUIVALENTS AT THE END 18,952,507 21,323,443
ANALYSIS OF CASH AND CASH EQUIVALENTSFavorable balancesShort term investments 20,186,188 20,932,609Cash in hand and at bank 4,046,762 3,095,993Unavorable balances
Bank overdrats (5,280,443) (2,705,159)Total cash and cash equivalents 18,952,507 21,323,443
Note : All values are in Rupees 000s, unless otherwise stated.Figures in brackets indicate deductions.The above fgures are not audited.
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Chairmans Message Financial Inormation
Interim Financial Statements l 7
For the three months ended 30th June 2013 2012
A Proft beore working capi tal changes
Proft beore tax 2,199,722 2,396,585
Adjustments or :Finance income (1,322,957) (930,900)Finance cost 369,311 465,485Share o results o equity accounted investees (701,570) (792,917)Proft on sale o non-current investments 11,461 -Depreciation o property, plant and equipment 611,222 523,092Provision or impairment losses - 99,769(Proft) / loss on sale o property, plant and equipment and intangible assets 11,600 (11,233)Amortisation o lease rentals paid in advance 165,835 170,826Amortisation o intangib le assets 61,946 62,293Amortisation o o ther deerred liabil ities (129) (128)
Gratuity provision and related costs 72,032 56,609Unrealised (gain) / loss on oreign exchange (net) 80,455 276,060
1,558,928 2,315,541
Note : All values are in Rupees 000s, unless otherwise stated.Figures in brackets indicate deductions.The above fgures are not audited.
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PROGRESSIVE
8 l JOHN KEELLS HOLDINGS PLC l www.keells.com
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributabletoequityholdersofparent
Stated
Revaluation
Foreigncurrency
Other
Availablefor
Revenu
e
TotalNon-controlling
Total
capital
reserve
translation
capital
salereserve
reserve
s
interest
Equity
reserve
r
eserves
As
at1
April201
3
26,4
80,3
96
17,7
80,4
32
2,7
29,8
57
-
124,2
82
42,7
04,2
0
3
89,8
19,1
70
11,3
66,2
40
101,1
85,4
10
Profitfortheperiod
-
-
-
-
-
1,5
86,3
9
7
1,5
86,3
97
158,8
52
1,7
45,2
49
Othercomprehen
siveincome
-
(1,8
65)
406,4
09
-
38,7
63
-
443,3
07
43,8
33
487,1
40
Totalcomprehensiveincome
-
(1,8
65)
406,4
09
-
38,7
63
1,5
86,3
9
7
2,0
29,7
04
202,6
85
2,2
32,3
89
Exerciseofshare
options
75,2
80
-
-
-
-
-
75,2
80
-
75,2
80
Directcostoniss
ueofshares
-
-
-
-
-
(70
7)
(707)
-
(707)
Finaldividendpa
id-2012/13
-
-
-
-
-
(1,2
86,4
6
0)
(1,2
86,4
60)
-
(1
,286,4
60)
Subsidiarydividen
dtonon-controllinginterest
-
-
-
-
-
48,6
9
6
48,6
96
(494,9
49)
(446,2
53)
As
at30
June
2013
26,5
55,6
76
17,7
78,5
67
3,1
36,2
66
-
163,0
45
43,0
52,1
2
9
90,6
85,6
83
11,0
73,9
76
101,7
59,6
59
As
at1
April201
2
25,1
10,5
28
9,4
87,7
94
2,9
87,4
76
428,3
65
322,9
87
33,0
92,5
5
0
71,4
29,7
00
8,8
84,2
52
80,3
13,9
52
Profitfortheperiod
-
-
-
-
-
1,6
58,7
1
8
1,6
58,7
18
197,8
42
1,8
56,5
60
Othercomprehen
siveincome
-
-
537,7
88
-
(368,8
06)
-
168,9
82
55,6
76
224,6
58
Totalcomprehensiveincome
-
-
537,7
88
-
(368,8
06)
1,6
58,7
1
8
1,8
27,7
00
253,5
18
2,0
81,2
18
Exerciseofshare
options
721,5
79
-
-
-
-
-
721,5
79
-
721,5
79
Finaldividendpa
id-2011/12
-
-
-
-
-
(1,2
75,9
7
7)
(1,2
75,9
77)
-
(1
,275,9
77)
Subsidiarydividen
dtonon-controllinginterest
-
-
-
-
-
48,1
5
1
48,1
51
(672,6
67)
(624,5
16)
Acquisition,
disposalandchangesin
non-controllin
ginterest
-
-
-
-
-
83
9
839
(1,3
55)
(516)
As
at30
June
2012
25,8
32,1
07
9,4
87,7
94
3,5
25,2
64
428,3
65
(45,8
19)
33,5
24,2
8
1
72,7
51,9
92
8,4
63,7
48
81
,215,7
40
Note:
Allvalue
sareinRupees000s,
unlessotherwise
stated.
Figuresinbracketsindicatedeductions.
Theabovefiguresarenotaudited.
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Chairmans Message Financial Inormation
Interim Financial Statements l 9
COMPANY INCOME STATEMENT
For the three months ended 30th June Note 2013 2012 Change %
Continuing operations
Rendering o services 181,687 134,905 35
Revenue 181,687 134,905 35
Cost o sales (99,008) (85,378) 16
Gross proft 82,679 49,527 67
Dividend income 2,191,598 2,360,046 (7)
Other operating income 2,350 4,928 (52)
Administrative expenses (295,253) (292,176) 1
Other operating expenses (9,574) (9,092) 5
Results rom operating activities 1,971,800 2,113,233 (7)
Finance cost (90,959) (151,937) (40)
Finance income 384,722 281,732 37
Net fnance income 293,763 129,795 126
Proft beore tax 2,265,563 2,243,028 1
Tax expense 7 (32,532) (4,752) 585
Proft or the period 2,233,031 2,238,276 -
Rs. Rs.
Dividend per share 1.50 1.50
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above fgures are not audited.
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PROGRESSIVE
10 l JOHN KEELLS HOLDINGS PLC l www.keells.com
COMPANY STATEMENT OF COMPREHENSIVE INCOME
For the three months ended 30th June Note 2013 2012
Proft or the period 2,233,031 2,238,276
Other comprehensive income
Net (loss)/gain on available-or-sale fnancial assets 43,481 (314,681)
Tax on other comprehensive income 7 - -
Other comprehensive income or the period, net o tax 43,481 (314,681)
Total comprehensive income or the period, net o tax 2,276,512 1,923,595
Note : All values are in Rupees 000s, unless otherwise stated.Figures in brackets indicate deductions.The above fgures are not audited.
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Chairmans Message Financial Inormation
Interim Financial Statements l 11
COMPANY STATEMENT OF FINANCIAL POSITION
As at 30.06.2013 31.03.2013
ASSETS
Non-current assetsProperty, plant and equipment 70,038 75,309
Intangible assets 82,143 74,004
Investments in subsidiaries and joint ventures 26,522,694 26,641,307
Investments in associates 9,821,364 9,821,364
Other non current fnancial assets 1,774,566 1,710,653
Other non current assets 10,310 10,310
38,281,115 38,332,947
Current assets
Trade and other receivables 1,057,226 994,862
Amounts due rom related parties 557,072 518,084
Other current assets 388,063 384,966
Short term investments 13,624,488 12,551,540Cash in hand and at bank 586,128 63,159
16,212,977 14,512,611
Total assets 54,494,092 52,845,558
EQUITY AND LIABILITIES
Stated capital 26,555,676 26,480,396
Revenue reserves 21,168,327 20,221,756
Other components o equity 126,938 83,457
Total equity 47,850,941 46,785,609
Non-current liabilities
Borrowings 3,212,279 3,752,621Employee beneft liabilities 137,753 134,075
3,350,032 3,886,696
Current liabilities
Trade and other payables 241,213 229,990
Amounts due to related part ies 12,679 13,156
Current portion o borrowings 1,308,636 1,314,424
Other current liabilities 8,102 105,478
Bank overdrats 1,722,489 510,205
3,293,119 2,173,253
Total equity and l iabilities 54,494,092 52,845,558
Rs. Rs.
Net assets per share 55.79 54.58
Note : All values are in Rupees 000s, unless otherwise stated.
The above fgures are not audited.
I certiy that the fnancial statements comply with the requirements o the Companies Act No.7 o 2007.
M J S Rajakariar
Group Financial Controller
The Board o Directors is responsible or the preparation and presentation o these fnancial statements.
S C Ratnayake J R F Peiris
Chairman Group Finance Director
26 July 2013
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PROGRESSIVE
12 l JOHN KEELLS HOLDINGS PLC l www.keells.com
COMPANY STATEMENT OF CASH FLOW
For the three months ended 30th June 2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Proft beore tax 2,265,563 2,243,028Finance income (384,722) (281,732)Dividend income (2,191,598) (2,360,046)Finance cost 90,959 151,937Depreciation o property, plant and equipment 6,041 6,520Proft on sale o property, plant and equipment (4) (2,696)Amortisation o intangible assets 5,961 4,376Provision or impairment losses 118,613 99,769Gratuity provision and related costs 6,198 5,686
Proft beore working capital changes (82,989) (133,158)
(Increase) / Decrease in trade and other receivables (36,885) 559,119(Increase) / Decrease in other current assets (2,165) (85,377)
Increase / (Decrease) in trade and other payables 10,747 (43,993)Increase / (Decrease) in other current liabilities (97,376) (2,127)Cash generated rom operations (208,668) 294,464Finance income received 384,722 255,981Finance expenses paid (87,552) (64,430)Dividend received 2,218,061 2,369,445Tax paid (33,461) (12,946)Gratuity paid (2,519) (2,518)Net cash ow rom operating activities 2,270,583 2,839,996
CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIESPurchase and construction o property, plant and equipment (769) (804)
Purchase o intangible assets (14,099) -Increase in interest in subsidiaries - (15,526)Increase in interest in associates - (28,389)Proceeds rom sale o property, plant and equipment 4 6,696(Purchase)/disposal o short term investments (net) 4,469,699 (1,510,948)(Purchase)/disposal o other non current fnancial assets (net) (20,431) 3,946Net cash ow rom/(used in) investing activities 4,434,404 (1,545,025)
CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIESProceeds rom issue o shares 75,280 721,579Dividend paid (1,286,460) (1,275,977)Repayment o long term borrowings (640,475) (664,176)Net cash ow rom / (used in) fnancing activities (1,851,655) (1,218,574)
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS 4,853,332 76,397
CASH AND CASH EQUIVALENTS AT THE BEGINNING 5,433,342 8,919,099
CASH AND CASH EQUIVALENTS AT THE END 10,286,674 8,995,496
ANALYSIS OF CASH & CASH EQUIVALENTSFavorable balancesShort term investments 11,423,035 8,983,135Cash in hand and at bank 586,128 61,594
12,009,163 9,044,729Unavorable balances
Bank overdrats (1,722,489) (49,233)Total cash and cash equivalents 10,286,674 8,995,496
Note : All values are in Rupees 000s, unless otherwise stated.Figures in brackets indicate deductions.The above fgures are not audited.
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Chairmans Message Financial Inormation
Interim Financial Statements l 13
COMPANY STATEMENT OF CHANGES IN EQUITY
Stated Available or Revenue Total
capital sale reserve reserves Equity
As at 1 April 2013 26,480,396 83,457 20,221,756 46,785,609
Proft or the period - - 2,233,031 2,233,031
Other comprehensive income - 43,481 - 43,481
Total comprehensive income - 43,481 2,233,031 2,276,512
Exercise o share option 75,280 - - 75,280
Final dividend paid - 2012/13 - - (1,286,460) (1,286,460)
As at 30 June 2013 26,555,676 126,938 21,168,327 47,850,941
As at 1 April 2012 25,110,528 229,595 15,754,217 41,094,340
Proft or the period - - 2,238,276 2,238,276
Other comprehensive income - (314,681) - (314,681)
Total comprehensive income - (314,681) 2,238,276 1,923,595
Exercise o share option 721,579 - - 721,579Final dividend paid - 2010/11 - - (1,275,977) (1,275,977)
As at 30 June 2012 25,832,107 (85,086) 16,716,516 42,463,537
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above fgures are not audited.
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PROGRESSIVE
14 l JOHN KEELLS HOLDINGS PLC l www.keells.com
OPERATING SEGMENT INFORMATION
BUSINESS SEGMENTS
The ollowing tables present revenue, proft inormation and segment assets regarding the Groups operating segments.
Transportation Leisure Property Consumer Foods & RetailFor the three months
ended 30th June 2013 2012 2013 2012 2013 2012 2013 2012
External revenue 4,128,503 5,307,450 4,116,630 3,912,911 672,752 611,541 6,154,518 5,986,843
Inter segment revenue 102,988 92,194 35,438 11,649 79,234 68,528 91,660 14,997
Total Segment revenue 4,231,491 5,399,644 4,152,068 3,924,560 751,986 680,069 6,246,178 6,001,840
Eliminations o inter
segment revenue
Net Revenue
Segment result 229,709 337,965 473,645 683,531 127,376 30,809 251,964 408,164
Finance cost (12,960) (23,906) (153,437) (103,570) (17,176) (2,674) (42,734) (20,445)
Finance income 41,204 52,417 141,889 68,101 35,780 38,978 43,104 7,815
Share o results o equity
accounted investees 490,324 590,949 - - - - - -
Eliminations / adjustments (604) (588) (1,100) - (3,518) (2,427) (3,000) (3,000)
Proft / (loss) beore tax 747,673 956,837 460,997 648,062 142,462 64,686 249,334 392,534
Tax expense (44,022) (71,189) (66,847) (45,006) (17,150) (22,617) (64,679) (128,172)
Proft / (loss) or the period 703,651 885,648 394,150 603,056 125,312 42,069 184,655 264,362
Segment assets 6,586,187 8,137,942 48,234,607 50,021,694 14,317,293 11,136,074 16,466,328 12,768,537
Investments in associates
Deerred tax assets
Goodwill
Other current assets
Eliminations / adjustments
Total Assets
Purchase and
construction o PPE 6,580 6,593 249,364 703,708 13,410 1,558 126,224 256,505
Addition to IA - - - - - - 2,268 623
Depreciation o PPE 19,407 23,404 320,733 252,499 5,833 2,535 168,071 146,391
Amortisation /impairment o IA 1,207 2,950 - - - - 3,974 3,046
Amortisation o LRPA - - 162,623 170,641 - - - -
Gratuity provision and
related costs 4,061 5,210 21,821 16,901 300 300 24,171 22,547
Note : All values are in Rupees 000s, unless otherwise stated.
Figures in brackets indicate deductions.
The above fgures are not audited.
PPE (Property, plant and equipment), IA (Intangible assets), LRPA (Lease rentals paid in advance)
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Chairmans Message Financial Inormation
Interim Financial Statements l 15
Financial Services Inormation Technology Others Group Total
2013 2012 2013 2012 2013 2012 2013 2012
2,229,523 1,997,392 1,879,275 1,431,946 830,839 764,799 20,012,040 20,012,882
26,998 24,449 75,117 72,736 141,510 144,713 552,945 429,266
2,256,521 2,021,841 1,954,392 1,504,682 972,349 909,512 20,564,985 20,442,148
(552,945) (429,266)
20,012,040 20,012,882
31,579 174,409 8,514 29,581 (108,237) (24,167) 1,014,550 1,640,292
(1) (145,338) (20,247) (15,492) (122,756) (154,060) (369,311) (465,485)
27,435 12,819 3,496 1,537 389,197 269,000 682,105 450,667
200,480 215,338 - (9,979) 10,766 (3,391) 701,570 792,917
- - 72,820 - 106,210 (15,791) 170,808 (21,806)
259,493 257,228 64,583 5,647 275,180 71,591 2,199,722 2,396,585
(65,933) (85,027) (11,585) (5,385) (184,257) (182,629) (454,473) (540,025)
193,560 172,201 52,998 262 90,923 (111,038) 1,745,249 1,856,560
28,465,997 23,378,562 3,641,604 3,283,744 24,200,021 19,860,912 141,912,037 128,587,465
16,531,774 16,640,319
241,207 163,894
950,884 717,900
3,502,770 1,708,244
(8,636) (15,201,104)
163,130,036 132,616,718
44,406 55,776 25,452 14,775 27,455 18,585 492,891 1,057,500
- - 3,305 2,615 14,099 - 19,672 3,238
37,841 36,019 29,202 32,635 30,135 29,609 611,222 523,092
47,066 46,854 3,738 5,067 5,961 4,376 61,946 62,293
- - - - 3,212 185 165,835 170,826
8,132 7,806 3,571 3,230 9,976 9,774 72,032 65,768
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PROGRESSIVE
16 l JOHN KEELLS HOLDINGS PLC l www.keells.com
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 o 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 fnancial statements or the period ended 30 June 2013, includes the Company reerring to John Keells Holdings PLC., as the
holding company and the Group reerring to the companies whose accounts have been consolidated therein.
3 APPROVAL OF FINANCIAL STATEMENTS
The interim condensed fnancial statements o the Group and the Company or the 3 months ended 30 June 2013 were authorised
or issue by the Board o Directors on 26 July 2013.
4 BASIS OF PREPARATION
The interim condensed fnancial statements have been prepared in compliance with Sri Lanka Accounting Standard LKAS 34 -
Interim Financial Reporting. These interim condensed fnancial statements should be read in conjunction with the annual fnancial
statements or the year ended 31 March 2013.
The presentation and classifcation o the fnancial statements o the previous year have been amended, where relevant, or better
presentation and to be comparable with those o the current year.
The interim condensed fnancial statements are presented in Sri Lankan Rupees and all values are rounded to the nearest thousand
except when otherwise indicated.
5 OPERATING SEGMENTS
For management purposes, the Group is organised into business units based on their products and services and has seven
reportable operating segments as ollows:
Transportation Leisure
Property Consumer Foods & Retail
Financial Services Inormation Technology
Others
6 CHANGE IN LIFE INSURANCE CONTRACT LIABILITIES
The results o Union Assurance PLCs lie business segment is consolidated line by line into the Groups consolidated income
statement. The change in lie insurance contract liabilities represents the transer to the Lie Fund, the dierence between all
income and expenditure attributable to lie policy holders during the period.
7 TAX EXPENSE
Group Company
For the three months ended 30th June 2013 2012 2013 2012
Income statement
Current income tax 463,204 547,584 32,532 4,752
Deerred tax (8,731) (7,559) - -
Other comprehensive Income
Deerred tax - - - -
454,473 540,025 32,532 4,752
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Chairmans Message Financial Inormation
Interim Financial Statements l 17
8 RELATED PARTY TRANSACTIONS
Group Company
For the three months ended 30th June 2013 2012 2013 2012
Transactions with related parties
Subsidiaries
(Purchase) / sale o goods - - 996 (287)
(Receiving) / rendering o services - - 155,381 120,607
(Purchase) / sale o property plant & equipment - - - -
Loans given - - - 45,000
Interest received / (paid) - - - 15,791
Rent received / (paid) - - (29,012) (12,819)
Guarantees received / (paid) - - - -
Joint Ventures
(Receiving) / rendering o services 15,628 8,513 - -
Associates
(Purchase) / sale o goods 1,903 - - -
(Receiving) / rendering o services 10,527 6,924 900 -
Interest received / (paid) 43,897 111,477 19,386 71,489
Loans taken - - - -
Leases taken - - - -
Key management personnel (KMP)
(Receiving) / rendering o services - - - -
Close amily members o KMP
(Receiving) / rendering o services - - - -
Companies controlled / jointly controlled / signifcantly
Inuenced by KMP and their close amily members
(Purchase) / sale o goods - - - -
Post employment beneft plan
Contributions to the provident und 87,378 49,204 19,121 10,331
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PROGRESSIVE
18 l JOHN KEELLS HOLDINGS PLC l www.keells.com
NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
9 SHARE INFORMATION
9.1 Public share holdings
The percentage o shares held by the public as at 30 June 2013 was 98.45 % (31 March 2013 - 88.36 %).
9.2 Directors share holdings
The number o shares held by the Board o Directors are as ollows:
As at 30-06-2013 31-3-2013
S C Ratnayake Chairman/CEO 5,299,066 5,299,066
A D Gunewardene Deputy Chairman 6,481,720 6,481,720
J R F Peiris 1,371,392 1,371,392
E F G Amerasinghe 5,514 5,514
T Das Nil Nil
S S Tiruchelvam 1,300 1,300
I Coomaraswamy Nil Nil
A R Gunasekara 107,866 107,866
M A Omar Nil Nil
9.3 Twenty largest shareholders o the Company are as ollows:
As at 30-06-2013 31-3-2013
Number o % Number o %
shares shares % shares
1 Mr S E Captain 84,774,813 9.9% 82,431,062 9.6%
2 Broga Hill Investments Limited 84,681,555 9.9% 74,591,759 8.7%
3 Janus Overseas Fund 75,942,233 8.9% 86,536,133 10.1%
4 Paints & General Industries Limited 50,007,835 5.8% 49,086,579 5.7%
5 Deutsche Bank AG London 33,628,953 3.9% 32,930,641 3.8%
6 Aberdeen Global-Asian Smaller Companies Fund 32,930,435 3.8% 26,563,207 3.1%
7 Melstacorp (Private) Limited 31,499,883 3.7% 31,499,883 3.7%
8 Aberdeen Global-Emerging Markets Smaller companies und 22,990,207 2.7% 30,850,435 3.6%
9 Estate o Mr A A N De Fonseka 19,952,358 2.3% 19,952,358 2.3%
10 Aberdeen Global Asia Pacifc Equity Fund 19,047,737 2.2% 19,047,737 2.2%
11 Janus Aspen series Overseas Portolio Fund 18,303,333 2.1% 18,303,333 2.1%
12 Schroder International Selection Fund 13,531,656 1.6% 13,172,166 1.5%
13 Mr K Balendra 13,141,807 1.5% 13,141,807 1.5%
14 J P Morgan Clearing Corporation 11,365,142 1.3% 11,518,889 1.3%
15 Rubber Investment Trust Limited A/C no.1 10,991,944 1.3% 11,535,763 1.3%
16 London- Edinburgh Dragon Trust PLC 10,936,664 1.3% 10,936,664 1.3%
17 BBH-Matthews International Funds 9,556,504 1.1% 9,556,504 1.1%
18 Aberdeen Asia Pacifc Fund 9,074,229 1.1% 9,074,229 1.1%
19 Mrs D Kumaranayagam 7,751,552 0.9% 7,751,552 0.9%
20 Aberdeen Institutional Commingled Funds, LLC 7,530,938 0.9% 7,325,938 0.9%
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Chairmans Message Financial Inormation
Interim Financial Statements l 19
9.4 Stated capital
Stated capital is represented by number o shares in issue as given below:
As at 30-06-2013 31-03-2013
Ordinary shares 856,577,088 856,112,828
Global depository receipts 1,122,069 1,129,677
9.5 Net assets per share
Net assets per share have been calculated, or all periods, based on the number o shares in issue as at 30 June 2013.
9.6 Market price per share
For the quarter ended 30th June 2013 2012Rs. Rs.
Highest 299.80 249.70
Lowest 243.50 219.00
Last traded 251.50 247.00
10 DIVIDENDS PAID
A fnal dividend o Rs.1.50 per share or the fnancial year ended 31 March 2013 was paid on 17 June 2013.
11 DISPOSAL OF ASSOCIATE
In June 2013, as per sales and purchase agreement the Group disposed o its interest in one o its associates, namely NDO India
(Pvt) Ltd. The resultant loss o Rs.11mn has been reected in the Consolidated Income Statement.
12 CONTINGENCIES, CAPITAL AND OTHER COMMITMENTS
There has been no signifcant change in the nature o the contingencies and other commitments, which were disclosed in the
annual report or the year ended 31 March 2013.
13 EVENTS AFTER THE REPORTING PERIOD
John Keells holdings PLC. (JKH) has proposed to the Government o Sri Lanka a Project, valued in excess o USD 650mn, involving
the developing, owning, managing, operating, selling, leasing and renting a luxury multi/mixed use Integrated Resort (the Project)
in the land owned and occupied by its subsidiaries Ceylon Cold Stores PLC (CCS), John Keells PLC (JKL), John Keells Properties
(Pvt) Ltd (JKP) and Waterront Properties (Pvt) Ltd (WPL) in Colombo 2. John Keells Holdings PLC together with its subsidiaries CCS,
JKL and JKP will be majority shareholders in the Project Company, WPL. The Board o Directors has approved the Project subject
to the Company receiving all the necessary approvals to the satisaction o the Board including shareholder approval as necessary.
The Project Company has already entered into an agreement with the Board o Investment o Sri Lanka to acilitate the requisite
approvals and a Gazette published on the 18 July 2013 under the Strategic Development Projects Act has made available tax, duty
and other concessions to the Project. The Board has authorized the Company to call or an EGM to seek shareholder approval o the
Investment as a Major Transaction under the Companies Act o 2007.
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PROGRESSIVE
20 l JOHN KEELLS HOLDINGS PLC l www.keells.com
NOTES
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Corporate Information
Name o Company
John Keells Holdings PLC
Legal Form
Public Limited Liability Company
Incorporated in Sri Lanka in 1979
Ordinary Shares listed on the
Colombo Stock Exchange
GDRs listed on the Luxembourg
Stock Exchange
Company Registration No.
PQ 14
Directors
S C Ratnayake Chairman
A D Gunewardene Deputy Chairman
J R F Peiris
E F G Amerasinghe
I Coomaraswamy
T Das
A R Gunasekara
M A Omar
S S Tiruchelvam
Senior Independent Director
E F G Amerasinghe
Audit Committee
A R Gunasekara Chairman
E F G Amerasinghe
I Coomaraswamy
Human Resources and
Compensation Committee
E F G Amerasinghe Chairman
I Coomaraswamy
A R Gunasekara
S S Tiruchelvam
Nominations Committee
T Das Chairman
S S TiruchelvamS C Ratnayake
Bankers
Bank o Ceylon
Citibank N.A
Commercial Bank
Deutsche Bank A.G
DFCC Bank
DFCC Vardhana Bank
Hatton National Bank
Hongkong & Shanghai BankingCorporation
Muslim Commercial Bank
Nations Trust Bank
National Savings Bank
Pan Asia Banking Corporation
Peoples Bank
Sampath Bank
Seylan Bank
Standard Chartered Bank
Depository or GDRs
Citibank N.A
New York
Registered ofce o the Company
130 Glennie Street
Colombo 2, Sri Lanka
Internet: www.keells.com
Email: [email protected]
Secretaries and Registrars
Keells Consultants (Pvt) Limited
130 Glennie Street
Colombo 2, Sri Lanka
Telephone: +94 11 230 6245
Facsimile: +94 11 243 9037
Investor Relations
John Keells Holdings PLC
130 Glennie StreetColombo 2, Sri Lanka
Telephone: +94 11 230 6165
+94 11 230 6000
Facsimile: +94 11 230 6160
Email: [email protected]
Group Sustainability and
Enterprise Risk Management
John Keells Holdings PLC
130 Glennie Street
Colombo 2, Sri LankaTelephone: +94 11 230 6182
Facsimile: +94 11 230 6249
Email: [email protected]
Contact or Media
Corporate Communications Division
John Keells Holdings PLC
130 Glennie Street
Colombo 2, Sri Lanka
Telephone: +94 11 230 6191
Email: [email protected]
Auditors
Ernst & Young
Chartered Accountants
P.O. Box 101
Colombo, Sri Lanka
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