Investor Presentation

Review of Q2 FY2020

Version 1.1

This Investor Presentation should be read in conjunction with the JKH Annual Report 2018/19 to obtain a more comprehensive understanding of the drivers and strategies of our businesses

About JKH

▪ Market cap of USD 1.12 billion

▪ No controlling shareholder - 99% free float

▪ Debt : Equity ratio of 32.12%

▪ The Board comprises of two Executive Directors and six Independent Non-

Executive Directors

2

Portfolio profitability

Note: The above excludes the contribution from Other including Information Technology and Plantations Services

2016/17

PAT attributable to equity holders

2017/18

▪ The Group has consciously focused on the shift in the composition of its earnings, targeting a greater contribution from higher ROCE earning industry groups such as Consumer Foods, Retail and Financial Services

▪ 2017/18 excludes the one-off surplus transfer of Rs.3.38 billion at Union Assurance PLC▪ The decline in contribution from the Property industry group is due to revenue of residential apartments

at Cinnamon Life not being recognised 3

2018/19

36%

10%4%

16%

1%

33%

Transportation

Consumer foods

Retail

Leisure

Property

FinancialServices

23%

17%

10%

32%

4%

15%

22%

11%

8%

20%

5%

33%

Cumulative EBITDA : for the year ended 31 March 2019

Total EBITDA 25,890 32,174 (20)

Recurring EBITDA* 25,672 28,805 (11)

*Refer page 36 of the JKH Annual Report 2018/19 for commentary on recurring adjustments

4

Industry GroupFY2019 FY2018 YoY Growth

(%)(Rs. Million) (Rs. Million)

Transportation 4,555 3,438 32

Consumer Foods 2,913 3,132 (9)

Retail 2,146 2,520 (15)

Leisure 5,017 6,330 (21)

Property 323 1,382 (77)

Financial Services 4,548 8,873 (49)

Other, incl. IT and Plantation Services 6,388 6,439 (1)

EBITDA : for the quarter ended 30 September 2019

5

Industry GroupQ2 FY2020

(Rs. Million)Q2 FY2019 * (Rs. Million)

YoY Growth (%)

Transportation 1,119 1,154 (3)

Consumer Foods 736 693 6

Retail 1,018 431 136

Leisure** 134 1,136 (88)

Property 48 (11) 538

Financial Services 563 564 0

Total EBITDA 4,800 6,411 (25)

• The Group’s Sri Lankan leisure business continued to be significantly impacted post the Easter Sunday terror attacks in April 2019.

• The quarter under review marked the first tranche of revenue recognition for the “Tri-Zen” residential development project. Revenue recognition of the project will ramp up over the next few quarters as the project progresses.

*Note that the Q2 FY2019 EBITDA is adjusted for SLFRS 16 - Leases

EBITDA : for six months ended 30 September 2019

6

Industry GroupYTD FY2020 (Rs. Million)

YTD FY2019 * (Rs. Million)

YoY Growth (%)

Transportation 2,174 2,086 4

Consumer Foods 1,578 1,217 30

Retail 2,105 1,065 98

Leisure** (198) 1,509 (113)

Property 36 37 (2)

Financial Services 999 1,161 (14)

Total EBITDA 8,503 10,816 (21)

**The Group’s Sri Lankan leisure business continued to be significantly impacted post the Easter Sunday terror attacks in April 2019.

*Note that the Q2 FY2019 EBITDA is adjusted for SLFRS 16 - Leases

Adjusted effective capital employed (Rs.bn)

Portfolio evaluation 2018/19; returns vs. effective capital deployed

7

Adjusted ROCE (%)

IT - 54%

Financial Services - 25%

Transportation - 21%

Consumer Foods - 21%

Plantations - 15%

Retail - 13%

Leisure - 4%Property (Excl. Cinnamon Life) – 0.2%

Cinnamon Life – (0.1%)

Hurdle Rate - 15%

Industry group Effective capital employed (%)

Cinnamon Life 24

Leisure 21

Property (Excluding Cinnamon Life) 13

Transportation 8

Financial Services 6

Retail 4

Consumer Foods 3

Plantations 1

Information Technology 0.1

▪ In addition, the Holding Company accounts for 18 per cent of effective capital employed which consists primarily of cash

Investment pipeline comprises primarily of Cinnamon Life

▪ Investment pipeline comprises primarily of Cinnamon Life, where completion is staggered

▪ The realisation of benefits from these investments is expected to accrue from beyond the next

12-18 months, particularly with Cinnamon Life.

▪ These investments will be funded through available/internally generated cash. Some of the key projects include:

8

Project Expected completion

Cinnamon Life - Residential and Commercial towers 4Q FY2020

- Hotel and Retail Mall 1Q FY2021

Reconstruction of Bentota Beach by Cinnamon End 2019

Reconstruction of Cinnamon Hakura Huraa Maldives End 2019

Cinnamon red Kandy FY2021

Roll out of 55-60 Retail outlets FY2020 & FY2021

Retail Centralised Distribution Centre 1H FY2021

JK Logistics - construction of a warehouse 1H FY2021

Transportation - overview

▪ 42% stake in SAGT

▪ SAGT capacity: ~2 million TEUs

▪ Largest cargo and logistics service provider in the country

▪ Leading bunkering services provider

▪ Joint Ventures with Deutsche Post for DHL air express and A P

Moller for Maersk Lanka

▪ GSA for Jet Airways, KLM Royal Dutch airlines and Gulf Air. Other

operations include warehousing and supply chain management

9

KARACHI

GWADARBAHL

MUMBAI

CHENNAI

VISHAKHAPATNAM

KOLKATA

CHITTAGONG

YANGON

MOMBASA

LAMU

DAR-ES-SALAM

CAPE TOWN

PORT LOUIS

ADEN

KOCHI

The strategic location of the Port of Colombo linking key shipping routes

10

Capacity enhancements in the Port of Colombo

11

• CICT - Colombo International Container Terminal• ECT - East Container Terminal• SAGT - South Asia Gateway Terminal• JCT - Jaya Container Terminal

Sustained volume growth in the Port of Colombo

12

4.31

4.91 5.19

5.74

6.21

7.05

2013 2014 2015 2016 2017 2018

Mil

lio

n T

EU

s

Port Container handling capacity (TEUs)

Colombo 8 million

Hong Kong 21 million

Singapore 40 million

Shanghai 36 million

Sources: Government websites/ Sri Lanka Ports Authority

Rapid absorption of capacity in the Port of Colombo

13

2Q FY20 earnings update: Transportation industry group

• LMS recorded a strong growth in profits driven by improved margins.

• Performance of SAGT impacted by a decline in overall volumes due to a disruption in operations in September 2019

(Rs. mn) Q2 2018/19

Q2 2017/18

EBITDA 1,119 1,154

Volumes (TEU)

2018/19 2019/20% YoY ChangeQ2 Q3 Q4 Q1 Q2

SAGT 538,723 516,037 514,589 535,998 492,542 (9)

JCT 592,551 604,672 607,913 561,897 580,747 (2)

CICT 676,710 703,470 668,230 702,745 763,123 13

Total 1,807,984 1,824,179 1,790,732 1,800,639 1,836,411 2

SAGT2018/19 2019/20

Q2 Q3 Q4 Q1 Q2

Domestic: Transshipment volume mix

17:83 20:80 21:79 19:81 19:81

300,000

500,000

700,000

900,000

Q2 Q3 Q4 Q1 Q2

2018/19 2019/20

Port of Colombo - Volumes ('000 TEUs) SAGT

JCT

CICT

Opportunities for growth in the Bunkering businesses

Bunkering Business (Lanka Marine Services)

Port of Hambantota

▪ Strong opportunities for private bunkering service providers with infrastructure in place for inland storage of petrochemicals and a pipeline to the Port

▪ The Port will occupy an area of 1,815 hectares and have a capacity to accommodate 33 vessels at a time

▪ Positioned within 10 nautical miles of the world’s busiest shipping lanes in which 200 to 300 ships sail through on a daily basis

Logistics Business (John Keells Logistics)

▪ Total warehouse space under management grew to approx. 315,000 sq.ft. in the year 2018/19, at a capacity utilisation of 90 per cent.

14

LMSQ2018/19 2019/20

Q2 Q3 Q4 Q1 Q2

Volume growth 2 9 (4) (16) (6)

Consumer Foods - overview

▪ Market leader in soft drinks, ice creams and processed meats▪ Custodians of the consumer brands “Elephant House”, “Keells - Krest”: high brand

equity

Key performance indicators (%) FY2016 FY2017 FY2018 FY2019

Growth of frozen confectionery volumes 15 11 (4) 10

Growth of beverage volumes 22 10 (16) (25)

Growth of convenience food volumes 11 (4) 3 7

EBITDA margin (%) 26 27 20 18

▪ A sugar tax on carbonated beverages was implemented from 9 November 2017 onwards, resulting in an upward revision of the selling prices across the CSD portfolio. Subsequently, the tax was revised to a threshold-based tax for sugar content for both CSD and fruit-based beverages in December 2018.

▪ Following the implementation of the threshold-based tax, selling prices of large PET packs of the CSD portfolio were reduced by ~20 per cent from February 2019.

15

2Q FY20 earnings update: Consumer Foods industry group

• Consumer Foods witnessed growth on account of improved performance in the Beverages and Frozen Confectionery businesses, driven by growth in volumes and higher margins.

• The volume growth momentum prior to the month of September displayed encouraging double-digit growth, although adverse weather impacted volumes in September.

(Rs. mn) Q2 2019/20

Q2 2018/19

EBITDA 736 693

Key performance indicators (%)FY2019 FY2020

Q2 Q3 Q4 Q1 Q2

Growth of frozen confectionery volumes 8 7 21 19 1

Growth of beverage volumes (31) (23) (6) 22 2

Growth of convenience foods volumes 12 3 1 (2) 0

EBITDA (Rs. million) 691 596 1,103 843 736

EBITDA margin (%) 16 16 24 19 17

Revenue mix (Bev:FC) 50:50 47:53 49:51 48:52 48:52

Low consumption patterns and penetration reflects potential for sustained growth

▪ The bulk-impulse mix of regional markets ishighly skewed towards the impulse markets,demonstrating the significant growth potentialfor the impulse category.

▪ To leverage on the opportunity available in theimpulse category, CCS invested in a state-of-theart ice cream plant in Seethawaka withoperations commencing in Q1 FY208/19.

▪ CCS reformulated its flagship flavours andcurrently, approximately 70 per cent of the CSDportfolio’s calorific sugar content isreformulated and replaced with Stevia; anatural sweetener with zero calories.

▪ CCS also launched non-CSD products such as ;flavoured milk, water branded under ElephantHouse, and additional flavours of fruit juicebranded under “Fit-O”)

Sri Lanka Thailand Malaysia

70%30%

8%

92%

56%

44%

Bulk vs. Impulse Split - Regional

Impulse Bulk

16

52.0

39.0

31.4

19.0

10.0

Philippines Thailand Singapore Malaysia Sri Lanka

Carbonated Soft Drinks - Per Capita Consumption (Litres)

Sources: Central Bank of Sri Lanka, Nomura Research Institute, Unilever Corp, Web articles

70

49 4843 40

16

Singapore Malaysia HongKong

Taiwan Thailand Sri Lanka

Modern Retail Penetration (%)

Retail - overview

Present share of modern retail No. of outlets

Keells * 100

Cargills 395

Arpico 49

Laugfs 38

* As at 30 September 2019

▪ The Retail industry group consists of two business verticals; ▪ Supermarkets▪ Office Automation

▪ “Keells” is a chain of ~10,000 square foot modern grocery retail outlets

17

▪ Comparatively higher modern trade density – population per store ratios as against regional peers

▪ High potential for expansion due to lower penetration of modern trade in Sri Lanka

▪ Approximately 225 outlets expected by FY2022/23.

▪ The sector will undertake planned capex of approximately USD 65 million over the next two years for 50-60 new stores and the construction of the centralised distribution centre

13

2

47

30

21

.0

7.3

4.7

4.5

3.7

3.6

3.4

3.0

2.5

1.9

0.9

Modern trade density – population (’000) per store

Source: Retail and shopper trends in the Asia Pacific, AC Nielsen

Keells current coverage

No. of new stores expected

FY2020 20

FY2021 25-30

Rapid expansion to capitalise on low retail penetration levels

18

Supermarkets - overview

▪ Profitability margins were impacted by the cost of expanding and operating new stores coupled with the one-off cost associated with rebranding and refitting stores

▪ The blended margins in the ensuing year are expected to improve as a result of the benefit of a larger base of existing outlets showing an improvement in the performance. However, there may be a certain dilutive effect on margins due to the opening of new outlets

19

Profitability margin (%)

FY2016 FY2017 FY2018 FY2019

EBITDA (Rs.milllion) 1,537 2,010 1,975 1,623

EBITDA margin 6.9 6.7 5.3 3.6

EBIT margin 5.8 5.7 4.0 2.0

2Q FY20 earnings update: Retail industry group

• Retail performance was driven by robust revenue growth in the Supermarkets business, supported by a notable contribution from new outlets and strong growth in customer footfall.

*Note that the 2018/19 EBITDA is adjusted for SLFRS 16 - Leases

(Rs. mn) Q2 2019/20

Q2 2018/19*

EBITDA 1,018 431

Key performance indicators (%)FY2019 FY2020

Q2 Q3 Q4 Q1 Q2

Same store sales growth 0.8 2.4 4.5 3.6 5.1

Same store footfall growth 2.7 4.2 7.1 2 5.7

Average basket value growth (1.9) (1.7) (2.4) 1.6 (0.6)

EBITDA margin 1.6 3.9 5.0 7 .0 6.3

Leisure - overview

▪ Chain of Resort hotels in Sri Lanka

‾ 8 Resort hotels in strategic tourist destinations (1,000 rooms)

‾ 10% of the country’s 4-5 star class tourist accommodation

▪ 2 five star city hotels in Colombo (847 rooms)

▪ 240 roomed lean luxury hotel managed by Cinnamon; “Cinnamon red”

▪ 4 Resort properties in the Maldives (430 rooms)

▪ Established hotel brand – “Cinnamon”

▪ Leading inbound tour operator in Sri Lanka

▪ Tour operator partners include global players such as Thomas Cook, Kuoni, Hotel

Plan and Virgin Holidays

20

▪ Greater focus on asset light investment models as a part of the

strategy to enhance the ‘Cinnamon’ footprint in Sri Lanka

▪ Land bank of 173 acres of freehold and 127 acres of leasehold

land in addition to 517 acres of leasehold land in Digana

▪ Of the total freehold land acreage owned, a total of 96 acres

of freehold land are in key tourist hotspots:

▪ Ahungalla (Southern Province) : 10.9 acres

▪ Trincomalee (Eastern Province) : 14.6 acres

▪ Nilaveli (Eastern Province) : 41.7 acres

▪ Wirawila (Southern Province) : 25.2 acres

▪ Nuwaraeliya (Central Province) : 3.4 acres

Round trip offering in key tourist destinations; further potential to expand the ‘Cinnamon’ footprint

21

▪ Introduction of the Group’s fourth Maldivian resort, “Cinnamon Velifushi Maldives” in October 2019: • In line with our asset light investment strategy, the hotel was handed over to Cinnamon

on an operating lease. • Consists of 90 rooms; positioned as a 5-star deluxe resort. • Initial bookings for the resort are above expectations. • The new property is located in close proximity to the Velana International Airport (VIA).

▪ "Cinnamon Hakuraa Huraa Maldives“ and "Cinnamon Bentota Beach Bentota“ - reconstruction of new hotels with expected completion in December 2019.

▪ Commencement of construction of "Cinnamon red Kandy" in the heart of the hill capital of Sri Lanka in January 2019, complementing its round trip offering of its hotel portfolio• The development will follow a similar asset light business model• Jointly developed by John Keells Hotels PLC (KHL) and Indra Traders (Private) Limited• Consists 210 rooms at an aggregate investment of Rs.6.50 billion; where KHL’s

investment is estimated to be Rs.1.00 billion• Located in proximity to the upcoming Kandy-Colombo Expressway and is the first LEED-

Gold green building certified hotel in Kandy.

Expanding the ‘Cinnamon’ footprint

22

Easter Sunday terror attacks April 2019: Way forward

23

▪ In the aftermath of the attacks, the significant dip witnessed in the tourist arrivals to the country has gradually witnessed an upward momentum, indicating signs of recovery.

▪ The forward bookings for the Group’s Sri Lankan hotels have witnessed an upward trend and occupancy is expected to pick-up in the peak season to be in line with the previous year, albeit at a moderately lower room rate.

▪ Arrivals for the quarter (July-September) declined by 35 per cent to 367,863 compared to 567,275 recorded in the comparative quarter of the previous financial year.

Post-crisis recovery initiatives• A one-year moratorium on loans taken

by the tourism related businesses.• A revision of the Value Added Tax (VAT)

for hotel and tour operators from 15 per cent to 7 per cent.

• An allocation of Rs. 1.51 billion to provide relief for the tourism sector loans under Enterprise Sri Lanka loan schemes.

• Implemented visa free arrival for 36 countries in a bid to improve tourist arrivals.

Group initiatives • Engage the domestic market to boost

occupancies in the short term and medium term.

• Critical evaluation of operating models and development of agile cost structures within the hotel properties to remain flexible in managing short term operations costs.

• Launched “Bring a friend home” campaign to assist the recovery plan of the industry.

Easter Sunday attacks: recovery seen to be in 12-18 months

24

▪ Studies of other travel destinations that were impacted by similar terrorism incidents indicate that destinations typically require 12 to 18 months to revert to pre-incident levels.

▪ Popular destinations which were affected by acts of terrorism such as Bali, Mumbai, Paris and Brussels have indicated a recovery in less than 18 months.

Crisis Category Average recovery time (months)

Political Turmoil 26.7

Terrorism 13.0

Pandemic 21.3

Environmental Disaster 23.8

Trend in tourist arrivals post terror attacks:

Source: World Economic Forum

Estimates by the World Travel and Tourism council show the average recovery time in months by type of crisis:

-

4,000

8,000

12,000

16,000

Indonesia and Bali tourist arrivals

Indonesia Bali

Source: World Bank and Bali Hotel Association

-

2,000

4,000

6,000

8,000

10,000

Belgium Tourist Arrivals

Source: World BankSource: Ministry of Tourism, Thailand

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

20

002

001

20

022

003

20

042

005

20

062

007

20

082

009

20

102

011

20

122

013

20

142

015

20

162

017

Thailand and Bangkok tourist arrivals

Thailand Bangkok

*City Hotels occupancy and ARR excludes Cinnamon red

Occupancies and average room rates

25

Sector

FY2019 FY2018

Occupancy (%)

ARR (US $)

EBITDA Margin

(%)

Occupancy (%)

ARR (US $)

EBITDA Margin

(%)

City Hotels* 48 128 22 64 127 27

Sri Lankan Resorts

80 90 28 81 91 28

Maldivian Resorts

84 320 23 82 263 24

*Sri Lanka Resorts EBITDA includes IP gains

2Q Earnings update: Leisure industry group

• The decline is profitability is on account of the negative impacts to the Sri Lankan leisure business as a result of the Easter Sunday terror attacks in April 2019, the partial closure of Cinnamon Dhonveli Maldives for refurbishment and start-up costs related to Cinnamon Hakuraa Huraa Maldives and our new resort, Cinnamon Velifushi Maldives.

*Note that the 2018/19 EBITDA is adjusted for SLFRS 16 - Leases

(Rs. mn) Q2 2019/20

Q2 2018/19*

EBITDA 134 1,136

**City Hotels occupancy and ARR excludes Cinnamon red

Key indicators

City Hotels ** Sri Lankan Resorts Maldivian Resorts

FY2019 FY2020 FY2019 FY2020 FY2019 FY2020

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Occupancy (%) 65 48 14 35 70 87 46 65 92 95 55 47

ARR(US $) 128 126 123 106 85 109 72 67 300 393 325 297

EBITDA Margin (%) 23 25 (34) 12 21 49* (15) 4 16 38 22 13

YearTouristarrivals

(In 000’s)Growth (%)

2010 654 46

2011 856 31

2012 1,006 18

2013 1,275 27

2014 1,527 20

2015 1,798 18

2016 2,051 14

2017 2,116 3

2018 2,334 10

2019-YTD 1,376 (21)

▪ Tourist arrivals from January – September 2019 was 1,376,312 a decrease of 21%, as compared to the 1,731,922 recorded in the comparative period of the previous year.

▪ Arrivals for the quarter (July-September) declined by 35 per cent to 367,863 compared to 567,275 recorded in the comparative quarter, subsequent to the Easter Sunday attacks which took place in April 2019.

Source: Sri Lanka Tourism Development Authority

Trend of tourist arrivals to Sri Lanka

26

-

500

1,000

1,500

2,000

2,500

1985 1996 2007 2018

Annual tourist arrivals to Sri Lanka ('000)

MonthTourist Arrivals

(In 000’s)Growth %

May 38 (71)

June 63 (57)

July 116 (47)

August 144 (28)

September 109 (27)

Source: Sri Lanka Tourism Development Authority

Significant growth in Asian arrivals to Sri Lanka

27

245,753

334,274 383,748

527,656

640,045

822,272

938,697 962,395 966,731

2010 2011 2012 2013 2014 2015 2016 2017 2018

To

uri

st a

rriv

als

Calendar Year

Source: Governmental tourism websites

Tourist arrivals to Sri Lanka lag well below regional peers

28

0

5

10

15

20

25

30

35

40

Malaysia Indonesia Thailand Vietnam Cambodia Sri Lanka

Arr

ival

s in

mil

lio

ns

1990 2018 Actual/ Target

60,000

31,79030,114

26,113

9,100 7,6005,019

Bangkok Manila Kuala Lampur Jakarta Ho Chi Minh Hanoi Colombo

Room inventory in Colombo lags far behind other popular regional capital cities

29

▪ Colombo is increasingly becoming an attractive location for City Hotel developments

▪ Expected 5-star room supply:

▪ Operations at “Cinnamon Life” is expected to commence in March 2021 with the residential apartments and office complex ready for hand over and occupation by April 2020 onwards

Pipeline of room inventory to support arrivals trajectory

30

* Note that the year of completion of the above is uncertain and is likely to be later than stipulated

Development No. of roomsYear of

completion

Cinnamon Life 800 1Q 2021

ITC 350 2021

Ritz Carlton* 473 2022

Total rooms 1,623

Property - overview

▪ “John Keells Properties”; explore property development opportunities by leveraging on brand equity

▪ Focused strategies for expansion via developer/landowner tie ups

▪ Catering to different target market segments:▪ Luxe Spaces▪ Metropolitan Spaces▪ Suburban Spaces

▪ High-rise apartment complexes completed▪ “7th Sense” on Gregory’s Road▪ OnThree20▪ The Emperor▪ The Monarch

“7th Sense” on Gregory’s Road

OnThree20

31

▪ Low levels of urbanisation within Sri Lanka in comparison to regional peers

▪ Annual condominium supply far below regional peers

Source: KL: CBRE property market outlook 1Q 2018 (forecast for 2018)HCMC: CBRE Vietnam property overview Q1 2017 (forecast for 2018)CMB: Internal Estimates (forecast for 2018)

Industry potential

32

53,796

38,000

2,187

KL Ho Chi Minh City Colombo

Annual condominium supply in regional cities

Low penetration of apartment living in Colombo

33

Source: Company analysis

10%

95%

80%

60%70%

50% 55%65%

90%

5%

20%

40%30%

50% 45%36%

GreaterColombo

Singapore Thailand(Central

Bangkok)

Thailand(Outskirts)

Malaysia(Central KL)

Malaysia(Greater KL)

India (Chennai) India(Bangalore)

Apartments Landed houses

Developable land bank of over 36 acres in central Colombo

▪ Prime developable land bank of over 36 acres held in central Colombo

▪ One of the largest privately owned land banks

▪ Opportunities for development at land banks held in Crescat City and Cinnamon Lakeside

Vauxhall street land bank

▪ Prime freehold land extent of 9.38 acres, to be developed with Finlays Colombo Limited

▪ Located in close proximity to the Beira lake water front which is earmarked for development of recreational and residential projects by the UDA

34

Cinnamon Lakeside, Colombo

Vauxhall Street

Union Place

Cinnamon Grand, Colombo

Crescat Boulevard

Cinnamon Life

Developable freehold land of approximately 25 acres in close proximity to Colombo city

▪ Greater connectivity and reduction in travel time to Colombo city post construction of the outer circular expressway

▪ Direct connectivity to the Port City Colombo and a multi modal transportation hub to be developed

▪ Opportunity to expand into residential apartment projects in proximity to the Colombo city

Suburban Space development

▪ Master planning is currently underway for the 18-acre land in Thudella

▪ The site will be developed in phases, as a fully integrated community with approximately 2,000 units.

▪ The preliminary approvals for the development are in place, and the design work has been initiated.

35

Robust development pipeline; on-going developments

1. Revenue recognition of Cinnamon Life will be upon completion in CY2021. The completion dates of the project are as follows:

✓ Residential and office towers : March 2020

✓ Hotel and retail mall : March 2021

2. “Tri-Zen”- an 891 apartment residential development in central Colombo, with expected completion in FY2022/23

3. Master planning has been initiated for the jointly held 9.38-acre property in Vauxhall Street and the 18-acre site in Thudella

4. Acquisition of approximately 100 perches of land located in Colombo for a niche residential development

5. Future development of the land bank held at Rajawella Holdings Limited, as discussed in detail overleaf36

2Q FY20 earnings update: Property industry group

• First tranche of revenue for the “Tri-Zen” residential development project recognised during the quarter. The revenue recognition of the project will ramp up over the next few quarters as the project progresses.

(Rs. mn) Q2 2019/20 Q2 2018/19

EBITDA 48 (11)

Cumulative sales (units)Number of units sold

as at 30 September ‘19

Cinnamon Life:

The Residence at Cinnamon Life 135

Suites at Cinnamon Life 110

Cinnamon Life commercial complex

4 floors

Tri-Zen 229

Rajawella Holdings Limited (RHL)

▪ Owners of a majority stake in RHL to complement the Group’s leisure and property portfolios

▪ The 500 acre land in Digana includes an 18-hole, Donald Steel designed, Golf Course and developable land extent of approximately 80 acres

▪ Currently developing the master plan to maximise the development potential of the land plot

▪ Troon International has taken over the management of the course and the refurbishment of the course commenced in February 2018

▪ Expected appreciation of land value with the completion of the central expressway

▪ Development and sale of properties such as villas, club house facilities, activity zones and possible operation of a hotel in the long term

37

Robust development pipeline: Scenic 500 acre land bank with an 18-hole golf course

Cinnamon Life Integrated Resort

38

Integrated development in Colombo

39

Integrated development in Colombo

40

41

42As at September 2019

43As at September 2019

Conferencing ; capacity (4,837 pax) in three venues and car park facility (2,450 slots)

800 guest room hotel, including conferencing, banqueting, 7 specialty restaurants and entertainment facilities

Rentable mall and entertainment space of 372,000 Sq. Ft (Gross – 518,000 Sq. Ft)

First residential development of approximately – 358,000 Sq. Ft (231 units).

Second residential development of approximately – 255,000 Sq. Ft (196 units).

A standalone office development -254,000 Sq. Ft rentable area

Development programme

Note: Areas are subject to change based on final drawings

44

The growth in Indian MICE travel to complement Cinnamon Life

Source: MasterCard

45

1.51.63

1.78

1.94

2.11

2017 2018 2019 2020 2021

Indian Outbound MICE (Millions)

▪ Union Assurance (JKH Stake : 90%)

▪ Committed to a “digital first” business model with an investment of over Rs. 800Mn to become the largest digital insurer in Sri Lanka

▪ Developing Bancassurance channels - UA entered into exclusive bancassurance partnerships with Nations Trust Bank PLC and Union Bank PLC

Financial Services – Insurance sector overview

0%

1%

2%

3%

4%

5%

6%

Life Insurance Penetration as a % of GDP - 2016

Global average – 3.47%

46

45.0

54.0

64.0 71.0

80.3

2014 2015 2016 2017 2018

Rs.

Bn

Life Insurance Gross Written Premiums

*Excludes a one-off surplus of Rs. 3.38 billion arising from the change in policy liability valuation

Financial Services – Insurance sector overview

47

Key performance indicators CY2013 CY2014 CY2015 CY2016 CY2017 CY2018

Market share (%) 14 13 13 13 14 14

GWP growth (%) 8 8 17 19 22 11

Recurring net profit (Rs.Mn) 791 881 1,127 1,313 4,002* 1,640

Surplus from Life Fund (Rs.Mn) 612 750 800 1,100 3,642 1,100

Life Fund (Rs.Bn) 19.3 23.1 26.3 30.3 29.1 32.1

Capital Adequacy Ratio N/A N/A N/A 411% 352% 262%

2Q FY20 earnings update: Financial Services industry group

• Nations Trust Bank PLC recorded an improvement in profitability as a result of focused efforts on collections and a lower impairment charge compared to the corresponding quarter of the previous year.

• The performance of Union Assurance PLC recorded a marginal decline whilst the gross written premiums demonstrated growth.

*Note that the 2018/19 EBITDA is adjusted for SLFRS 16 - Leases

(Rs. mn) Q2 2019/20

Q2 2018/19

EBITDA 563 564

Keyperformance indicators

Q2 FY 2019(Jul- Sep 2018)

Q3 FY 2019(Oct- Dec

2018)

Q4 FY2019 (Jan-Mar

2019)

Q1 FY2020(Apr-Jun

2019)

Q2 FY2020(Jul-Sep 2019)

GWP growth (% YoY)

4 15 (1) (1) 8

Net profit(Rs.Mn)

1,638 1,002 178 324 153

Net profit growth (% YoY)

1,693 (86) (41) (46) (91)

▪ Nations Trust Bank (JKH effective economic interest : 32.16%)▪ Focus on SME / retail strategy▪ Franchise for American Express cards

Financial Services – Banking sector overview

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Key performance indicators CY2013 CY2014 CY2015 CY2016 CY2017 CY2018

Loans and advances growth (%) 12.1 19.5 22.4 23.7 25.0 19.0

Industry (LCB’s) (%) 8.5 12.3 23.5 17.8 15.8 20.3

Return on equity (%) 19.6 19.8 18.20 17.7 17.4 15.3

Industry (LCB’s) (%) 17.3 16.8 15.7 17.3 17.5 13.7

Net Interest Margin (%) 5.8 5.8 5.5 5.1 4.5 4.6

Industry (LCB’s) (%) 3.7 3.6 3.5 3.5 3.5 3.7

NPL ratio (%) 3.5 4.2 2.8 2.8 2.3 4.6

Deposit base (Rs. Bn) 96 111 129 152 194 231

Asset base (Rs. Bn) 142 159 176 211 268 325

Net Profit (Rs. Mn) 2,136 2,537 2,614 2,869 3,371 3,702

Key performance indicators Q2 FY2019 (Jul-Sep 2018)

Q3 FY2019 (Oct- Dec 2018)

Q4 FY2019 (Jan-Mar 2019)

Q1 FY2020 (Apr-Jun 2019)

Q2 FY2020(Jul-Sep 2019)

Net profit (Rs. Mn) 974 783 773 575 1,066

Net profit growth (% YoY) (7) (16) (18) (34) 9

Gross Loan growth (% YoY) 18 20 18 12 8

Net Interest Margin (%) 5.0 5.0 4.9 4.8 4.8

NPL Ratio (%) 3.7 4.6 4.9 6.1 6.1

THANK YOU

This document was produced by John Keells Holdings PLC for information purposes only. The information contained in this document are a review of the financial information pertaining to FY2020, and does not

constitute an issue prospectus or a financial analysis. This Investor Presentation should be read in conjunction with the JKH Annual Report 2018/19 to obtain a more comprehensive understanding of the drivers and

strategies of our businesses.

Whilst John Keells Holdings accepts responsibility for the accuracy of the information contained in this document, it does not assume any responsibility for investment decision made by the prospective investors based

on information contained herein. In making the investment decision, prospective investors must rely on their own examination and assessments of the Company including the risks involved.

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