UR STR NG P INTS - Colombo Stock Exchange...constructed Frozen Confectionery plant in Seethawaka,...

John Keells Holdings PLCInterim Condensed Financial StatementsNine months ended 31 December 2018

URSTR NG

P INTS

1

Financial Information

CHAIRMAN’S REVIEW

Dear Stakeholder,

• Strong Group revenue increase of 17 per cent

• Performance of the Ports and Shipping business, South Asia Gateway Terminals (SAGT), boosts Transportation profitability

• Frozen Confectionery business seeing growth driven by impulse volumes and Beverage business showing early signs of recovery

• Supermarkets business gaining momentum post re-branding with recurring EBITDA growth

• Whilst City Hotels performance is impacted by a sharp increase in room supply and political volatility during the quarter, Sri Lanka and Maldives Resorts show improvement in recurring profitability

• Launch of “Tri-Zen” project in January 2019 will positively impact Property performance from June 2019 quarter

• Financial Services impacted by marked to market losses at Union Assurance PLC due to decline in stock market

The revenue at Rs.36.55 billion for the third quarter of the financial year 2018/19 is a 17 per cent increase over the Rs.31.22 billion recorded in the previous financial year. The cumulative revenue for the first nine months of the financial year 2018/19 at Rs.99.28 billion is an increase of 13 per cent over the revenue of Rs.87.66 billion recorded in the same period of the previous financial year.

The profit attributable to equity holders in the third quarter of the

financial year 2018/19 at Rs.4.80 billion is an increase of 7 per cent over the corresponding period of the previous financial year, whilst the first nine months performance at Rs.12.08 billion is an increase of 9 per cent over the previous year.

The Group earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs.5.85 billion in the third quarter of the financial year 2018/19 is an increase of 2 per cent over the Rs.5.74 billion recorded in the corresponding period of the previous financial year. The Group EBITDA for the first nine months of the financial year 2018/19 at Rs.14.68 billion is a decrease of 2 per cent over the EBITDA of Rs. 15.04 billion recorded in the same period of the previous financial year.

The Group profit before tax (PBT) at Rs.5.63 billion in the third quarter of the financial year 2018/19 is a decrease of 3 per cent over the Rs.5.83 billion recorded in the corresponding period of the previous financial year. The Group PBT for the first nine months of the financial year 2018/19 at Rs.13.23 billion is a decrease of 11 per cent over the PBT of Rs.14.87 billion recorded in the same period of the previous financial year.

The Company PBT for the third quarter of 2018/19 at Rs.3.76 billion is an increase of 59 per cent over the Rs.2.36 billion recorded in the corresponding period of 2017/18. The increase in PBT is mainly attributable to the higher exchange gains recorded at the Company on its foreign currency denominated cash holdings compared to the

corresponding quarter of the previous financial year. The Company PBT for the first nine months of the financial year 2018/19 at Rs.8.81 billion is an increase of 11 per cent over the previous financial year.

Following a period of political volatility and uncertainty from late October to December 2018, stability has been restored. We reiterate that political stability and policy continuity is essential for economic and business growth.

Transportation The Transportation industry group PBT of Rs.1.10 billion in the third quarter of 2018/19 is an increase of 16 per cent over the third quarter of the previous financial year [2017/18 Q3: Rs.945 million]. The increase in profitability is mainly on account of the performance of the Group’s Ports and Shipping business, South Asia Gateway Terminals (SAGT). SAGT recorded a growth in throughput of 8 per cent, with transshipment volumes contributing to approximately 77 per cent of total volume. The calendar year 2018 marked a significant milestone for both the Port of Colombo and SAGT, recording an all-time high of handling over 7 million TEUs and 2 million TEUs, respectively. The overall capacity utilisation of the Port of Colombo is now in excess of 85 per cent, demonstrating the strong potential for continued capacity led growth. In this context, timely development of the deep-draft East Container Terminal (ECT) is critical to ensure that capacity continues to be enhanced towards attracting further volumes and to sustain continued growth at the Port. Whilst

2 John Keells Holdings PLC

CHAIRMAN’S REVIEW

the Group’s Bunkering business, Lanka Marine Services, recorded a 9 per cent growth in volumes, profits were impacted by a contraction in blended margins arising from the sharp reduction in global oil prices within a short period. The Logistics business recorded a strong performance due to an increase in throughput in its warehouse facilities. Design work for the new warehouse in Enderamulla was completed during the quarter under review, whilst the civil and structural scopes are expected to be issued in the ensuing quarter.

Consumer Foods The Consumer Foods industry group PBT of Rs.332 million in the third quarter of 2018/19 is a decrease of 36 per cent over the third quarter of the previous financial year [2017/18 Q3: Rs.520 million]. The decline in profitability is primarily on account of a volume decline of 23 per cent in the carbonated soft drinks (CSD) range of the Beverages business. The decline in beverage volumes is due to the implementation of the sugar tax on CSD which resulted in substantial price increases across the industry. As a result of its lower operating leverage, the EBITDA of the beverage business recorded a decrease of 69 per cent in the third quarter of 2018/19 compared to the corresponding period of the previous financial year. However, it is encouraging that the growth in monthly volumes within the quarter has been on an upward trend.

The Frozen Confectionery business recorded a volume growth of 7 per cent during the quarter under review, driven by growth in

the impulse segment. Given the significant investment in the newly constructed Frozen Confectionery plant in Seethawaka, Colombo Ice Company Limited (CICL), and the associated depreciation of the infrastructure coupled with the financing expenditure, EBITDA is more reflective of the underlying growth of the business. Accordingly, the EBITDA for the Frozen Confectionery business increased by 18 per cent compared to the corresponding period of 2017/18. During the quarter, two new impulse stick range varieties were launched. Keells Food Products PLC recorded a 3 per cent growth in volumes and a better sales mix.

RetailThe Retail industry group PBT of Rs.159 million in the third quarter of 2018/19 is a decrease of 71 per cent against the third quarter of the previous financial year [2017/18 Q3: Rs.540 million]. The Supermarkets business PBT of Rs.137 million in the third quarter of 2018/19 is a decrease against the third quarter of the previous financial year [2017/18 Q3: Rs.427 million].

As planned, the refitting and rebranding of all outlets was completed by November 2018. The new “Keells” brand was formally launched during the quarter under review. The new brand has been very well received and we are confident that it will continue to drive footfall in line with our expectations.

The supermarkets business recorded a growth of 4.2 per cent in customer footfall which contributed towards a modest growth of 2.4 per cent

in same store sales, despite the subdued macro conditions which also resulted in a contraction in average basket values. Excluding the one-off re-fit and re-branding costs, EBITDA for the quarter showed an encouraging growth of 7 per cent. During the quarter under review, four new outlets were opened, bringing the total store count to 91 as at 31 December 2018.

Leisure The Leisure industry group PBT of Rs.694 million in the third quarter of 2018/19 is a decrease of 23 per cent over the third quarter of the previous financial year [2017/18 Q3: Rs.901 million]. The Leisure industry group EBITDA in the third quarter of 2018/19 is a decrease of 9 per cent over the third quarter of the previous financial year. The decline is mainly attributable to the City Hotels sector which maintained room rates, but witnessed a decline in occupancies due to the increased supply of room inventory within Colombo, which impacted profitability. The trend of continued growth in demand for city rooms was impacted in this quarter by the political volatility, which restricted, in particular, business travel to the city.

Operating profitability in the Sri Lankan Resorts segment improved during the quarter. However, PBT was impacted by exchange losses on the translation of its foreign currency denominated debt arising from the depreciation of the Rupee during the quarter. The business will however accrue the benefits of the depreciation on account of its foreign currency denominated revenue streams over

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the ensuing periods. The Maldivian Resorts segment recorded an improvement in average room rates and occupancies, although profitability was impacted by the closure of “Cinnamon Hakuraa Huraa Maldives” for re-construction of a new hotel. The re-opening of the hotel is on track for December 2019. It is encouraging to note that subsequent to the refurbishment of “Cinnamon Dhonveli Maldives”, the average room rates of the hotel recorded for the quarter under review is above expectations.

PropertyThe Property industry group PBT at Rs.14 million in the third quarter of 2018/19 is a decrease of 58 per cent over the third quarter of the previous financial year [2017/18 Q3: Rs.34 million]. The decline in profitability is on account of a non-cash consolidation adjustment for the acceleration of the depreciation of old buildings by a Real Estate company on a land earmarked for future development.

The construction of “Cinnamon Life” is progressing with encouraging momentum. The super structure of “The Suites at Cinnamon Life” has been completed whilst all other buildings are also nearing completion. The installation of the mechanical and electrical services, the external façades and the internal works are now underway. Preliminary construction work has commenced on the 891-apartment joint venture residential development project, “Tri-Zen”, in Union Place, Colombo. The piling work at the site will commence in February 2019. The pre-sales for the

project continue to be encouraging. We expect to commence revenue recognition on this project from the June 2019 quarter onwards.

Financial ServicesThe Financial Services industry group PBT of Rs.936 million in the third quarter of 2018/19 is a decrease of 39 per cent over the third quarter of the previous financial year [2017/18 Q3: Rs.1.54 billion]. Whilst Union Assurance PLC recorded an encouraging growth of 12 per cent in gross written premiums, profitability was impacted by marked to market losses on its portfolio of equity investments. Whilst Nations Trust Bank recorded an improvement in net interest income and steady loan growth, profitability during the quarter under review was impacted by the introduction of the debt repayment levy.

Other, Including Information

Technology and Plantation ServicesOther, including Information Technology and Plantation Services industry group recorded a PBT of Rs.2.40 billion in the third quarter of 2018/19 which is an increase of 78 per cent over the third quarter of the previous financial year [2017/18 Q3: Rs.1.35 billion]. The increase in PBT is mainly attributable to the higher exchange gains recorded at the Company on its foreign currency denominated cash holdings compared to the corresponding quarter of the previous financial year. The Information Technology sector recorded an increase in profitability on account of onboarding new clients. The performance of the Plantation Services sector was

impacted by a decrease in tea prices during the quarter under review.

Sustainability Initiatives The carbon footprint and water withdrawn per million rupees of revenue decreased by 17 per cent and 20 per cent respectively, to 0.63 metric tons and 11.58 cubic meters, for the quarter under review. In absolute terms, the carbon footprint increased by 5 per cent to 24,447 MT whilst water withdrawal increased by 2 per cent to 443,989 cubic meters, driven by the increased operational activity in the Supermarket business as well as the inclusion of the new Frozen Confectionery plant (Colombo Ice Company Limited) to the sustainability reporting scope.

It is encouraging to report that there is a 3 per cent reduction in energy usage and a 8 per cent reduction in water usage, from the baseline established for achieving the 2020 Group sustainability goals. The Group continuously monitors the progress towards the established goals and will strive to achieve the 2020 Goal. Further, Group employees were provided with approximately 10 hours of training per employee, whilst 50 occupational injuries were reported during the quarter under review.

Corporate Social Responsibility Following are some of the highlights of John Keells Foundation’s (JKF) initiatives during the quarter under review:

• Under the John Keells English Language Scholarship Programme, 245 students commenced the pre-intermediate

John Keells Holdings PLC4

CHAIRMAN’S REVIEW

course, while 46 students commenced the intermediate level. The foundation-level course was inaugurated in 10 out of the 17 locations.

• The annual Career Guidance Programme under the Neighbourhood Schools Development Project was conducted with the participation of 85 students.

• JKF organised a full day soft skills workshop at the Sabaragamuwa University in collaboration with the Alumni Association of the Faculty of Management Studies for 617 students.

• Under the John Keells Vision Project, 239 cataract patients were identified at eye camps held in Sooriyawewa and Ginigathhena. 4,485 school children from 23 schools underwent vision screening and 355 eye glasses were donated under the Vision Screening Programme of School Children of the Colombo District in collaboration with the Department of Health Services.

• Under the John Keells HIV & AIDS Awareness Campaign, 3,098 army personnel were sensitised at 6 army training centres.

• Under Project WAVE (Working Against Violence through Education), JKF conducted the following programs:

- A public transport campaign to coincide with the International Day for the Elimination of

Violence Against Women for the third successive year. 75 staff volunteers participated in pasting stickers on buses and distributing information cards to commuters at four main public and private bus terminals in Colombo estimated to impact over 100,000 persons.

- Awareness sessions on preventing and addressing sexual harassment in the workplace sensitising 85 supervisory level staff of Cinnamon resorts in the Maldives.

- A police training program in partnership with The Asia Foundation where 41 police officers from 8 police stations of the Colombo Central Police Division were trained on responding effectively and appropriately to instances of violence against women.

• JKF conducted a community awareness programme covering youth skills and career development opportunities, child protection and substance abuse prevention benefiting 75 persons.

• Cinnamon Elephant Project (a collaborative elephant conservation effort by Cinnamon Hotels Management, JKF and the Centre for Conservation and Research) won the silver award at the International Travel & Tourism Awards 2018 under the category of Best in Responsible Tourism.

• Under the Village Adoption Project in Mullaitivu, construction work on a Community Centre in Puthumathalan was completed.

• JKF launched its “Volunteer Connect” App aimed at serving as a one-stop-shop for volunteer engagement.

DividendsThe Company paid a first interim dividend for the financial year 2018/19 in November 2017, amounting to Rs.2.00 per share. Your Board declared a second interim dividend of Rs.2.00 per share to be paid on 22 February 2019.

Share Repurchase As announced to the Colombo Stock Exchange, the repurchase offer for 69,376,433 ordinary shares, (being 5 per cent of its issued shares) concluded in January 2019, with acceptance of 46 per cent of the offer (32,189,118 ordinary shares) and the balance (37,187,315 ordinary shares) being accepted proportionately based on applications for additional shares to be repurchased. Accordingly, a total amounting to Rs.11.10 billion was paid out on 25 January 2019.

Retirements I would like to place on record our deep appreciation for the invaluable contribution made by our former Chairman, Mr. Susantha Ratnayake, who retired with effect from 31 December 2018.

Krishan Balendra Chairman

31 January 2019

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CONSOLIDATED INCOME STATEMENT

Quarter ended 31 December Nine months ended 31 December

Note 2018 2017 Change %

2018 2017 Change %

Continuing operations

Goods transferred at a point in time 26,241,440 21,416,901 23 72,187,827 60,126,523 20

Services transferred over time 10,304,991 9,799,269 5 27,095,585 27,535,893 (2)

Revenue from contracts with customers 36,546,431 31,216,170 17 99,283,412 87,662,416 13

Cost of sales (29,169,358) (24,332,208) 20 (80,149,275) (66,946,413) 20

Gross profit 7,377,073 6,883,962 7 19,134,137 20,716,003 (8)

Other operating income 613,073 529,179 16 1,618,755 1,559,797 4

Selling and distribution expenses (1,664,888) (1,136,594) 46 (4,505,023) (3,133,636) 44

Administrative expenses (3,602,758) (3,125,619) 15 (9,842,101) (9,573,199) 3

Other operating expenses (953,222) (751,675) 27 (2,860,565) (2,310,726) 24

Results from operating activities 1,769,278 2,399,253 (26) 3,545,203 7,258,239 (51)

Finance cost (338,084) (153,308) 121 (1,564,303) (414,081) 278

Finance income 3,863,084 2,615,340 48 10,173,835 8,609,699 18

Change in insurance contract liabilities 6 (896,457) 663 (135,312) (2,321,136) (3,626,788) (36)

Share of results of equity accounted investees 1,235,353 967,702 28 3,401,161 3,039,962 12

Profit before tax 5,633,174 5,829,650 (3) 13,234,760 14,867,031 (11)

Tax expense 7 (590,201) (1,025,294) (42) (642,050) (3,038,730) (79)

Profit for the period 5,042,973 4,804,356 5 12,592,710 11,828,301 6

Attributable to:

Equity holders of the parent 4,800,811 4,492,196 7 12,082,799 11,055,001 9

Non-controlling interest 242,162 312,160 (22) 509,911 773,300 (34)

5,042,973 4,804,356 5 12,592,710 11,828,301 6

LKR. LKR. LKR. LKR.

Earnings per share

Basic 3.46 3.24 8.71 7.97

Diluted 3.46 3.24 8.71 7.97

Dividend per share 2.00 2.00 4.00 4.00

Note : All values are in LKR ‘000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Quarter ended 31 December

Nine months ended 31 December

Note 2018 2017 2018 2017

Profit for the period 5,042,973 4,804,356 12,592,710 11,828,301

Other comprehensive income

Other comprehensive income to be reclassified to income statement in subsequent periods

Currency translation of foreign operations 4,621,447 (339,895) 8,800,391 (15,719)

Net gain/(loss) on cash flow hedges (197,354) 128,311 (24,206) 108,384

Net gain/(loss) on debt instruments at fair value through other comprehensive income

(228,555) 45,405 (354,113) 899,469

Share of other comprehensive income of equity-accounted investees

546,154 (20,018) 1,078,313 20,827

Net other comprehensive income to be reclassified to income statement in subsequent periods

4,741,692 (186,197) 9,500,385 1,012,961

Other comprehensive income not to be reclassified to income statement in subsequent periods

Net gain/(loss) on equity instruments at fair value through other comprehensive income

(21,321) (77,698) (18,149) (67,839)

Revaluation of land and buildings - 1,916,986 - 1,983,986

Remeasurement gain / (loss) on defined benefit plans - - - (9,600)

Share of other comprehensive income of equity-accounted investees

- - 305,474 160,632

Net other comprehensive income not to be reclassified to income statement in subsequent periods

(21,321) 1,839,288 287,325 2,067,179

Tax on other comprehensive income 7 - (20,007) (32,404) (22,708)

Other comprehensive income for the period, net of tax 4,720,371 1,633,084 9,755,306 3,057,432

Total comprehensive income for the period, net of tax 9,763,344 6,437,440 22,348,016 14,885,733

Attributable to:

Equity holders of the parent 9,210,545 5,787,298 21,222,889 13,664,328

Non-controlling interest 552,799 650,142 1,125,127 1,221,405

9,763,344 6,437,440 22,348,016 14,885,733


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CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 31.12.2018 31.03.2018

ASSETSNon-current assetsProperty, plant and equipment 93,420,641 87,259,873 Lease rentals paid in advance 14,466,167 13,004,939 Investment property 13,651,399 12,427,058 Intangible assets 3,121,742 2,010,191 Investments in equity accounted investees 25,546,724 22,335,347 Non current financial assets 33,486,794 32,878,254 Deferred tax assets 1,856,833 171,503 Other non current assets 73,541,366 53,599,347

259,091,666 223,686,512

Current assetsInventories 8,115,675 6,689,541 Trade and other receivables 14,765,741 12,273,372 Amounts due from related parties 336,861 139,640 Other current assets 6,454,209 4,390,258 Short term investments 58,067,058 64,386,093 Cash in hand and at bank 10,336,049 10,882,856

98,075,593 98,761,760 Total assets 357,167,259 322,448,272

EQUITY AND LIABILITIESEquity attributable to equity holders of the parentStated capital 62,802,327 62,802,327 Revenue reserves 93,988,936 87,265,501 Other components of equity 59,355,599 49,852,263

216,146,862 199,920,091 Non-controlling interest 25,881,772 24,944,488

Total equity 242,028,634 224,864,579

Non-current liabilitiesInsurance contract liabilities 32,088,277 30,230,539 Interest bearing loans and borrowings 21,310,713 18,521,034 Deferred tax liabilities 7,125,698 7,089,179 Employee benefit liabilities 2,170,877 1,971,420 Other deferred liabilities 234,671 191,403 Other non-current liabilities 10,272,441 6,704,368

73,202,677 64,707,943

Current liabilitiesTrade and other payables 18,357,927 16,077,499 Amounts due to related parties 39,221 5,168 Income tax liabilities 1,923,936 2,078,807 Short term borrowings 4,601,385 3,128,508 Interest bearing loans and borrowings 1,877,959 2,062,465 Other current liabilities 3,797,597 3,513,214 Bank overdrafts 11,337,923 6,010,089

41,935,948 32,875,750 Total equity and liabilities 357,167,259 322,448,272

LKR LKR Net assets per share 155.78 144.08

Note : All values are in LKR ‘000s, unless otherwise stated. The above figures are not audited. I certify that the financial statements comply with the requirements of the Companies Act No.7 of 2007.

K M Thanthirige Group Financial Controller The Board of Directors is responsible for these financial statements.

K N J Balendra J G A CoorayChairman Deputy Chairman/Group Finance Director 31 January 2019


CONSOLIDATED STATEMENT OF CASH FLOWS

For the nine months ended 31 December Note 2018 2017

CASH FLOWS FROM OPERATING ACTIVITIESProfit before working capital changes A 5,917,269 7,163,091

(Increase) / Decrease in inventories (1,426,134) (274,307)(Increase) / Decrease in trade and other receivables 6,273,780 (35,623)(Increase) / Decrease in other current assets (2,029,596) 165,661 (Increase) / Decrease in other non-current assets (19,942,019) (6,546,985)Increase / (Decrease) in trade and other payables and other non-current liabilities 5,882,554 1,160,608 Increase / (Decrease) in other current liabilities 275,282 355,814 Increase / (Decrease) in insurance contract liabilities 1,857,738 3,255,515 Cash generated from operations (3,191,126) 5,243,774

Finance income received 10,173,835 8,281,122 Finance costs paid (938,632) (414,081)Dividend received 1,533,483 1,341,176 Tax paid (2,463,943) (4,004,514)Gratuity paid (160,159) (129,525)Net cash flow from operating activities 4,953,458 10,317,952

CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIESPurchase and construction of property, plant and equipment (8,739,717) (7,506,746)Purchase of intangible assets (1,437,058) (180,314)Addition to investment property (1,224,341) (4,397,291)Acquisition of subsidiaries (net of cash acquired) - (78,584)Investments in equity accounted investees - (1,804,500)Proceeds from sale of property, plant and equipment and intangible assets 121,429 215,090 Proceeds from sales of non-current investments - 207,164 Proceeds from sale of financial instruments - fair valued through profit or loss 466,082 759,411 Purchase of financial instruments - fair valued through profit or loss (572,158) (969,932)(Purchase) / disposal of short term investments (net) (17,183,717) (13,439,257)(Purchase) / disposal of non current financial assets (net) (1,016,761) (4,706,672)Grants received for investing activities 26,381 32,476 Net cash flow from / (used in) investing activities (29,559,860) (31,869,155)

CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIESProceeds from issue of shares - 5,369 Changes in non-controlling interest 292,921 (293,890)Dividend paid to equity holders of parent (5,550,114) (5,549,936)Dividend paid to shareholders with non-controlling interest (288,591) (538,002)Proceeds from long term borrowings 1,289,894 4,990,503 Repayment of long term borrowings (1,468,383) (2,489,187)Proceeds from/(repayment of ) other financial liabilities (net) 1,472,877 952,361 Net cash flow from / (used in) financing activities (4,251,396) (2,922,782)

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (28,857,798) (24,473,985)

CASH AND CASH EQUIVALENTS AT THE BEGINNING 42,427,873 47,643,605

CASH AND CASH EQUIVALENTS AT THE END 13,570,075 23,169,620

ANALYSIS OF CASH AND CASH EQUIVALENTSFavourable balancesShort term investments 14,571,949 21,029,545 Cash in hand and at bank 10,336,049 6,119,004 Unfavourable balancesBank overdrafts (11,337,923) (3,978,929)Total Cash and cash equivalents 13,570,075 23,169,620


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For the nine months ended 31 December Note 2018 2017

A. Profit before working capital changes

Profit before tax 13,234,760 14,867,031

Adjustments for:

Finance income (10,173,835) (8,609,699)

Finance cost 1,564,303 414,081

Share-based payment expense 361,823 382,778

Share of results of equity accounted investees (3,401,161) (3,039,962)

Depreciation of property, plant and equipment 2,796,423 2,424,430

Provision for impairment losses 174,700 -

(Profit)/loss on sale of property, plant and equipment and intangible assets 42,359 (103,821)

Profit on sale of investment in subsidiary - (28,575)

Amortisation of lease rentals paid in advance 351,751 327,486

Amortisation of intangible assets 325,823 245,190

Amortisation of other deferred liabilities (12,870) (17,824)

Employee benefit provision and related costs 356,128 284,854

Goodwill Impairment - 23,445

Accumulated unrecognised (gain)/ loss (net) - (31,392)

Unrealised (gain) / loss on foreign exchange (net) 297,065 25,069

5,917,269 7,163,091



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11


COMPANY INCOME STATEMENT

Quarter ended 31 December Nine months ended 31 December

Note 2018 2017 Change %

2018 2017 Change %

Continuing operations

Revenue from contracts with customers 417,475 327,990 27 1,263,866 982,277 29

Cost of sales (203,633) (130,113) 57 (635,856) (475,841) 34

Gross profit 213,842 197,877 8 628,010 506,436 24

Dividend income 1,386,038 990,478 40 2,612,380 3,558,331 (27)

Other operating income 3,900 2,935 33 241,113 10,208 2,262

Administrative expenses (431,188) (259,598) 66 (1,017,721) (879,328) 16

Other operating expenses (19,761) (7,643) 159 (38,385) (23,495) 63

Results from operating activities 1,152,831 924,049 25 2,425,397 3,172,152 (24)

Finance cost (664) (32,692) (98) (29,025) (69,681) (58)

Finance income 2,611,165 1,473,386 77 6,417,042 4,802,228 34

Profit before tax 3,763,332 2,364,743 59 8,813,414 7,904,699 11

Tax expense 7 (248,056) (314,690) (21) (911,551) (1,034,659) (12)

Profit for the period 3,515,276 2,050,053 71 7,901,863 6,870,040 15

LKR. LKR. LKR. LKR.

Dividend per share 2.00 2.00 4.00 4.00



COMPANY STATEMENT OF COMPREHENSIVE INCOME

Quarter ended 31 December

Nine months ended 31 December

Note 2018 2017 2018 2017

Profit for the period 3,515,276 2,050,053 7,901,863 6,870,040

Other comprehensive income

Other comprehensive income not to be reclassified to income statement in subsequent periods

Net gain/(loss) on equity instruments at fair value through other comprehensive income

(21,321) (77,699) (18,149) (67,840)

Net Other comprehensive income not to be reclassified to income statement in subsequent periods

(21,321) (77,699) (18,149) (67,840)

Tax on other comprehensive income 7 - - - -

Other comprehensive income for the period, net of tax (21,321) (77,699) (18,149) (67,840)

Total comprehensive income for the period, net of tax 3,493,955 1,972,354 7,883,714 6,802,200


13


COMPANY STATEMENT OF FINANCIAL POSITIONAs at 31.12.2018 31.03.2018

ASSETSNon-current assetsProperty, plant and equipment 106,010 127,878 Intangible assets 52,045 44,484 Investments in subsidiaries 74,123,730 67,967,918 Investments in equity accounted investees 10,165,655 10,165,655 Non current financial assets 309,024 267,111 Other non current assets 27,105 20,724

84,783,569 78,593,770

Current assetsTrade and other receivables 97,964 70,730 Amounts due from related parties 621,442 404,364 Other current assets 56,462 198,977 Short term investments 44,200,394 49,157,472 Cash in hand and at bank 1,503,772 496,591

46,480,034 50,328,134 Total assets 131,263,603 128,921,904

EQUITY AND LIABILITIESStated capital 62,802,327 62,802,327 Revenue reserves 65,233,407 62,881,658 Other components of equity 2,295,799 1,952,125 Total equity 130,331,533 127,636,110

Non-current liabilitiesEmployee benefit liabilities 231,478 208,788

231,478 208,788

Current liabilitiesTrade and other payables 351,518 332,191 Amounts due to related parties 7,924 5,377 Income tax liabilities 280,704 671,634 Other current liabilities 10,672 5,327 Bank overdrafts 49,774 62,477

700,592 1,077,006 Total equity and liabilities 131,263,603 128,921,904

LKR LKRNet assets per share 93.93 91.99

Note : All values are in LKR ‘000s, unless otherwise stated. The above figures are not audited.

I certify that the financial statements comply with the requirements of the Companies Act No.7 of 2007.

K M Thanthirige Group Financial Controller The Board of Directors is responsible for these financial statements.

K N J Balendra J G A CoorayChairman Deputy Chairman/Group Finance Director 31 January 2019


COMPANY STATEMENT OF CASH FLOWS For the nine months ended 31 December 2018 2017

CASH FLOWS FROM OPERATING ACTIVITIESProfit before tax 8,813,414 7,904,699 Adjustments for: Finance income (6,417,042) (4,802,228) Dividend income (2,612,380) (3,558,331) Finance cost 29,025 69,681 Profit on sale of non-current investments (224,173) - Depreciation of property, plant and equipment 27,855 22,913 Profit/ (loss) on sale of property, plant and equipment and intangible assets 9,999 (354) Amortisation of intangible assets 9,018 14,383 Share based payment expenses 112,159 123,610 Employee benefit provision and related costs 41,939 28,330 Profit before working capital changes (210,186) (197,297)

(Increase) / Decrease in trade and other receivables (246,469) (41,770)(Increase) / Decrease in other current assets 142,515 45,984 (Increase) / Decrease in other non-current assets (6,381) (3,441)Increase / (Decrease) in trade and other payables 27,370 (379,909)Increase / (Decrease) in other current liabilities 5,345 (7,897)Cash generated from operations (287,806) (584,330)

Finance income received 4,475,302 4,411,596 Finance costs paid (34,522) (67,848)Dividend received 2,614,593 3,682,864 Tax paid (1,302,481) (1,231,350)Gratuity paid (19,247) 20,131 Net cash flow from operating activities 5,445,839 6,231,063

CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIESPurchase and construction of property, plant and equipment (15,986) (77,449)Purchase of intangible assets (16,581) (14,278)Investment in subsidiaries - (6,177,680)Increase in interest in subsidiaries (5,974,576) (4,506,927)Proceeds from sale of property, plant and equipment 206 507 Proceeds from sale of non-current investments 290,299 - (Purchase) / disposal of short term investments (net) (15,015,908) (15,986,570)(Purchase) / disposal of non current financial assets (net) (37,601) (18,501)Net cash flow from/(used in) investing activities (20,770,147) (26,780,898)

CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIESProceeds from issue of shares - 4,985 Dividend paid (5,550,114) (5,549,936)Net cash flow from / (used in) financing activities (5,550,114) (5,544,951)

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (20,874,422) (26,094,786)

CASH AND CASH EQUIVALENTS AT THE BEGINNING 31,122,950 39,989,190

CASH AND CASH EQUIVALENTS AT THE END 10,248,528 13,894,404

ANALYSIS OF CASH & CASH EQUIVALENTSFavourable balancesShort term investments 8,794,530 13,835,122 Cash in hand and at bank 1,503,772 263,441 Unfavourable balancesBank overdrafts (49,774) (204,159)Total cash and cash equivalents 10,248,528 13,894,404


15


COMPANY STATEMENT OF CHANGES IN EQUITY

Note Stated capital

Other capital

reserves

Fair value reserve of

financial assets at

FVOCI

Revenue reserves

Total

As at 1 April 2017 62,790,080 1,402,656 102,220 49,988,495 114,283,451

Profit for the period - - - 6,870,040 6,870,040

Other comprehensive income - - (67,840) - (67,840)

Total comprehensive income - - (67,840) 6,870,040 6,802,200

Exercise of share options 4,985 - - - 4,985

Share based payments 1,845 380,933 - - 382,778

Final dividend paid - 2016/17 10 - - - (2,774,934) (2,774,934)

Interim dividend paid - 2017/18 10 - - - (2,775,002) (2,775,002)

As at 31 December 2017 62,796,910 1,783,589 34,380 51,308,599 115,923,478

As at 1 April 2018 62,802,327 1,916,415 35,710 62,881,658 127,636,110

Profit for the period - - - 7,901,863 7,901,863

Other comprehensive income - - (18,149) - (18,149)

Total comprehensive income - - (18,149) 7,901,863 7,883,714

Share based payments - 361,823 - - 361,823

Final dividend paid - 2017/18 10 - - - (2,775,057) (2,775,057)

Interim dividend paid - 2018/19 10 - - - (2,775,057) (2,775,057)

As at 31 December 2018 62,802,327 2,278,238 17,561 65,233,407 130,331,533



NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

Operating segment informationBusiness segmentsThe following tables present revenue, profit information and other disclosures regarding Group’s business segments.

Transportation Consumer Foods Retail Leisure Property Financial Services Others Group Total

For the Quarter ended 31 December 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Goods transferred at a point in time 7,031,957 4,389,948 3,937,230 3,661,837 14,912,965 12,704,447 - - - - - - 481,227 660,728 26,363,379 21,416,960

Services transferred over time 615,509 504,708 - - 21,287 182,437 6,193,414 6,068,091 240,804 218,570 3,157,467 2,804,795 782,480 621,956 11,010,961 10,400,557

Total segment revenue from contracts with customers

7,647,466 4,894,656 3,937,230 3,661,837 14,934,252 12,886,884 6,193,414 6,068,091 240,804 218,570 3,157,467 2,804,795 1,263,707 1,282,684 37,374,340 31,817,517

Eliminations of inter segment revenue (827,909) (601,347)

Net revenue from contracts with customers 36,546,431 31,216,170

Segment results 227,625 264,146 391,015 464,866 322,017 554,743 651,401 845,959 22,166 30,019 566,239 1,225,995 (198,734) (88,997) 1,981,729 3,296,731

Finance cost (25,746) (14,520) (66,892) (1,850) (169,553) (19,501) (57,677) (56,862) (9,462) (9,959) 24,586 - (33,340) (50,616) (338,084) (153,308)

Finance income 31,645 36,023 10,537 35,244 6,564 4,462 89,068 100,446 30,627 21,910 18,503 25,039 2,633,646 1,486,756 2,820,590 1,709,880

Share of results of equity accounted investees 901,957 660,035 - - - - 14,578 15,963 (7,886) - 326,704 291,704 - - 1,235,353 967,702

Eliminations / adjustments (39,333) (780) (3,000) 22,000 - - (2,932) (4,601) (21,149) (7,971) - - - (3) (66,414) 8,645

Profit / (loss) before tax 1,096,148 944,904 331,660 520,260 159,028 539,704 694,438 900,905 14,296 33,999 936,032 1,542,738 2,401,572 1,347,140 5,633,174 5,829,650

Tax expense (8,632) (60,432) 285 (149,244) (4,418) (156,594) (107,194) (261,825) 3,996 (6,866) (183,364) (1,280) (290,874) (389,053) (590,201) (1,025,294)

Profit / (loss) for the period 1,087,516 884,472 331,945 371,016 154,610 383,110 587,244 639,080 18,292 27,133 752,668 1,541,458 2,110,698 958,087 5,042,973 4,804,356

Purchase and construction of PPE* 40,917 13,838 478,352 1,738,963 1,479,520 601,503 1,293,545 1,136,328 1,743 21,408 67,709 13,359 39,096 96,394 3,400,882 3,621,793

Addition to IA* - - 2,405 - 46,085 13,666 - - - - 1,226,140 136,684 19,993 6,884 1,294,623 157,234

Depreciation of PPE* 64,965 28,600 196,163 114,060 231,269 178,047 414,335 362,302 7,864 8,366 18,948 17,567 51,248 36,141 984,792 745,083

Amortisation / impairment of IA* 557 769 723 1,128 12,771 2,402 11,971 13,572 149 193 131,639 54,227 4,802 6,568 162,612 78,859

Amortisation of LRPA* - - 757 757 - - 118,864 103,331 5,039 5,077 - - 293 293 124,953 109,458

Employee benefit provision and related costs 7,728 4,113 30,029 22,220 14,881 23,064 52,881 31,266 714 581 7,340 12,450 42,090 10,664 155,663 104,358

In addition to segment results, information such as finance costs / income, tax expenses has been allocated to segments for better presentation. * PPE - Property, plant and equipment, IA - Intangible assets, LRPA - Lease rentals paid in advance


17




For the Quarter ended 31 December 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Goods transferred at a point in time 7,031,957 4,389,948 3,937,230 3,661,837 14,912,965 12,704,447 - - - - - - 481,227 660,728 26,363,379 21,416,960

Services transferred over time 615,509 504,708 - - 21,287 182,437 6,193,414 6,068,091 240,804 218,570 3,157,467 2,804,795 782,480 621,956 11,010,961 10,400,557


7,647,466 4,894,656 3,937,230 3,661,837 14,934,252 12,886,884 6,193,414 6,068,091 240,804 218,570 3,157,467 2,804,795 1,263,707 1,282,684 37,374,340 31,817,517

Eliminations of inter segment revenue (827,909) (601,347)


Segment results 227,625 264,146 391,015 464,866 322,017 554,743 651,401 845,959 22,166 30,019 566,239 1,225,995 (198,734) (88,997) 1,981,729 3,296,731

Finance cost (25,746) (14,520) (66,892) (1,850) (169,553) (19,501) (57,677) (56,862) (9,462) (9,959) 24,586 - (33,340) (50,616) (338,084) (153,308)

Finance income 31,645 36,023 10,537 35,244 6,564 4,462 89,068 100,446 30,627 21,910 18,503 25,039 2,633,646 1,486,756 2,820,590 1,709,880

Share of results of equity accounted investees 901,957 660,035 - - - - 14,578 15,963 (7,886) - 326,704 291,704 - - 1,235,353 967,702

Eliminations / adjustments (39,333) (780) (3,000) 22,000 - - (2,932) (4,601) (21,149) (7,971) - - - (3) (66,414) 8,645

Profit / (loss) before tax 1,096,148 944,904 331,660 520,260 159,028 539,704 694,438 900,905 14,296 33,999 936,032 1,542,738 2,401,572 1,347,140 5,633,174 5,829,650

Tax expense (8,632) (60,432) 285 (149,244) (4,418) (156,594) (107,194) (261,825) 3,996 (6,866) (183,364) (1,280) (290,874) (389,053) (590,201) (1,025,294)

Profit / (loss) for the period 1,087,516 884,472 331,945 371,016 154,610 383,110 587,244 639,080 18,292 27,133 752,668 1,541,458 2,110,698 958,087 5,042,973 4,804,356

Purchase and construction of PPE* 40,917 13,838 478,352 1,738,963 1,479,520 601,503 1,293,545 1,136,328 1,743 21,408 67,709 13,359 39,096 96,394 3,400,882 3,621,793

Addition to IA* - - 2,405 - 46,085 13,666 - - - - 1,226,140 136,684 19,993 6,884 1,294,623 157,234

Depreciation of PPE* 64,965 28,600 196,163 114,060 231,269 178,047 414,335 362,302 7,864 8,366 18,948 17,567 51,248 36,141 984,792 745,083

Amortisation / impairment of IA* 557 769 723 1,128 12,771 2,402 11,971 13,572 149 193 131,639 54,227 4,802 6,568 162,612 78,859

Amortisation of LRPA* - - 757 757 - - 118,864 103,331 5,039 5,077 - - 293 293 124,953 109,458

Employee benefit provision and related costs 7,728 4,113 30,029 22,220 14,881 23,064 52,881 31,266 714 581 7,340 12,450 42,090 10,664 155,663 104,358






For the nine months ended 31 December 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Goods transferred at a point in time 17,568,060 11,342,586 11,933,672 11,734,122 41,462,698 35,266,860 - - - - - - 1,575,018 1,984,098 72,539,448 60,327,666

Services transferred over time 1,745,638 1,313,986 - - 60,504 311,465 16,091,767 16,778,245 702,274 662,013 8,211,922 7,587,989 2,311,132 2,416,525 29,123,237 29,070,223


19,313,698 12,656,572 11,933,672 11,734,122 41,523,202 35,578,325 16,091,767 16,778,245 702,274 662,013 8,211,922 7,587,989 3,886,150 4,400,623 101,662,685 89,397,889

Eliminations of inter segment revenue (2,379,273) (1,735,473)


Segment result 704,064 585,431 1,244,367 1,790,589 656,476 1,539,005 746,634 1,705,197 (8,759) 126,868 1,549,997 1,171,049 (366,433) (65,081) 4,526,346 6,853,058

Finance cost (75,272) (39,562) (146,871) (7,286) (355,223) (37,159) (157,841) (175,318) (26,386) (24,569) (686,695) (309) (116,015) (129,878) (1,564,303) (414,081)

Finance income 102,917 99,644 45,689 86,639 18,003 27,509 259,859 357,492 134,284 71,660 106,168 91,621 6,478,543 4,842,956 7,145,463 5,577,521

Share of results of equity accounted investees 2,388,906 2,098,960 - - - - 34,448 43,562 (23,329) 2,574 1,001,136 894,866 - - 3,401,161 3,039,962

Eliminations / adjustments (117,999) 72,493 (29,000) 16,000 - - (14,451) (12,826) (66,380) (23,829) - - (46,077) (241,267) (273,907) (189,429)

Profit / (loss) before tax 3,002,616 2,816,966 1,114,185 1,885,942 319,256 1,529,355 868,649 1,918,107 9,430 152,704 1,970,606 2,157,227 5,950,018 4,406,730 13,234,760 14,867,031

Tax expense (34,341) (119,047) (274,936) (543,051) (106,601) (451,806) (160,557) (453,496) (19,735) (31,564) 1,240,188 (5,809) (1,286,068) (1,433,957) (642,050) (3,038,730)

Profit / (loss) for the period 2,968,275 2,697,919 839,249 1,342,891 212,655 1,077,549 708,092 1,464,611 (10,305) 121,140 3,210,794 2,151,418 4,663,950 2,972,773 12,592,710 11,828,301

Purchase and construction of PPE* 145,761 409,208 1,577,342 2,264,225 4,047,898 1,926,377 2,719,155 2,668,396 28,686 28,491 135,486 26,743 85,389 183,306 8,739,717 7,506,746

Addition to IA* 850 - 2,042 186 168,692 13,866 - - - - 1,228,805 144,971 36,669 21,291 1,437,058 180,314

Depreciation of PPE* 193,468 82,858 543,838 400,074 620,561 432,881 1,209,867 1,320,423 22,690 19,137 55,090 53,776 150,909 115,281 2,796,423 2,424,430

Amortisation / impairment of IA* 1,588 2,306 2,279 3,359 24,760 6,785 35,914 47,118 492 579 245,373 165,091 15,417 19,952 325,823 245,190

Amortisation of LRPA* - - 2,270 1,926 - - 333,507 309,450 15,094 15,230 - - 880 880 351,751 327,486

Employee benefit provision and related costs 16,691 12,980 88,504 67,330 38,717 35,207 115,468 98,842 2,116 2,259 19,158 24,968 75,474 43,268 356,128 284,854




19




For the nine months ended 31 December 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Goods transferred at a point in time 17,568,060 11,342,586 11,933,672 11,734,122 41,462,698 35,266,860 - - - - - - 1,575,018 1,984,098 72,539,448 60,327,666

Services transferred over time 1,745,638 1,313,986 - - 60,504 311,465 16,091,767 16,778,245 702,274 662,013 8,211,922 7,587,989 2,311,132 2,416,525 29,123,237 29,070,223


19,313,698 12,656,572 11,933,672 11,734,122 41,523,202 35,578,325 16,091,767 16,778,245 702,274 662,013 8,211,922 7,587,989 3,886,150 4,400,623 101,662,685 89,397,889

Eliminations of inter segment revenue (2,379,273) (1,735,473)


Segment result 704,064 585,431 1,244,367 1,790,589 656,476 1,539,005 746,634 1,705,197 (8,759) 126,868 1,549,997 1,171,049 (366,433) (65,081) 4,526,346 6,853,058

Finance cost (75,272) (39,562) (146,871) (7,286) (355,223) (37,159) (157,841) (175,318) (26,386) (24,569) (686,695) (309) (116,015) (129,878) (1,564,303) (414,081)

Finance income 102,917 99,644 45,689 86,639 18,003 27,509 259,859 357,492 134,284 71,660 106,168 91,621 6,478,543 4,842,956 7,145,463 5,577,521

Share of results of equity accounted investees 2,388,906 2,098,960 - - - - 34,448 43,562 (23,329) 2,574 1,001,136 894,866 - - 3,401,161 3,039,962

Eliminations / adjustments (117,999) 72,493 (29,000) 16,000 - - (14,451) (12,826) (66,380) (23,829) - - (46,077) (241,267) (273,907) (189,429)

Profit / (loss) before tax 3,002,616 2,816,966 1,114,185 1,885,942 319,256 1,529,355 868,649 1,918,107 9,430 152,704 1,970,606 2,157,227 5,950,018 4,406,730 13,234,760 14,867,031

Tax expense (34,341) (119,047) (274,936) (543,051) (106,601) (451,806) (160,557) (453,496) (19,735) (31,564) 1,240,188 (5,809) (1,286,068) (1,433,957) (642,050) (3,038,730)

Profit / (loss) for the period 2,968,275 2,697,919 839,249 1,342,891 212,655 1,077,549 708,092 1,464,611 (10,305) 121,140 3,210,794 2,151,418 4,663,950 2,972,773 12,592,710 11,828,301

Purchase and construction of PPE* 145,761 409,208 1,577,342 2,264,225 4,047,898 1,926,377 2,719,155 2,668,396 28,686 28,491 135,486 26,743 85,389 183,306 8,739,717 7,506,746

Addition to IA* 850 - 2,042 186 168,692 13,866 - - - - 1,228,805 144,971 36,669 21,291 1,437,058 180,314

Depreciation of PPE* 193,468 82,858 543,838 400,074 620,561 432,881 1,209,867 1,320,423 22,690 19,137 55,090 53,776 150,909 115,281 2,796,423 2,424,430

Amortisation / impairment of IA* 1,588 2,306 2,279 3,359 24,760 6,785 35,914 47,118 492 579 245,373 165,091 15,417 19,952 325,823 245,190

Amortisation of LRPA* - - 2,270 1,926 - - 333,507 309,450 15,094 15,230 - - 880 880 351,751 327,486

Employee benefit provision and related costs 16,691 12,980 88,504 67,330 38,717 35,207 115,468 98,842 2,116 2,259 19,158 24,968 75,474 43,268 356,128 284,854





Operating segment information Business segments The following table presents segment assets and liabilities of the Group’s business segments.


As at 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018

Property, plant and equipment 921,243 876,075 9,094,175 8,071,509 9,562,868 6,283,252 45,762,710 43,858,172 4,072,922 4,071,495 2,086,674 2,006,816 1,278,530 1,349,064 72,779,122 66,516,383 Lease rentals paid in advance - - 143,993 146,263 - - 12,835,476 11,356,004 228,625 230,543 - - 38,624 39,505 13,246,718 11,772,315 Investment property - 118,000 228,601 228,601 - - 4,119,798 4,119,798 29,089,356 27,830,177 - - 1,094,511 1,094,511 34,532,266 33,391,087 Intangible assets 11,886 12,624 248,590 6,242 188,632 44,700 279,188 315,102 119 2,191 1,379,857 206,363 95,449 72,617 2,203,721 659,839 Non-current financial assets 150,298 139,889 195,766 170,347 170,418 141,423 6,496,661 5,670,565 571,848 634,176 31,524,172 30,999,887 391,643 350,421 39,500,806 38,106,708 Other non-current assets 23,632 20,268 52,880 46,852 1,064,506 813,484 43,830 32,091 72,726,044 53,068,496 102,913 85,909 43,968 39,469 74,057,773 54,106,569 Segment non-current assets 1,107,059 1,166,856 9,964,005 8,669,814 10,986,424 7,282,859 69,537,663 65,351,732 106,688,914 85,837,078 35,093,616 33,298,975 2,942,725 2,945,587 236,320,406 204,552,901

Investments in equity accounted investees 12,804,726 10,760,644 - - - - 842,514 545,216 1,797,695 1,807,074 10,101,789 9,222,413 - - 25,546,724 22,335,347 Deferred tax assets 1,856,833 171,503 Goodwill 738,596 738,596 Eliminations / adjustments (5,370,893) (4,111,835)Total non-current assets 259,091,666 223,686,512

Inventories 1,157,776 717,600 1,636,018 1,445,001 4,662,811 3,874,804 343,737 333,244 17,634 15,348 12,688 14,624 336,116 311,024 8,166,780 6,711,645 Trade and other receivables 2,922,458 2,178,988 2,548,176 2,276,076 2,715,747 2,213,106 4,320,243 3,404,368 751,927 57,923 1,291,413 921,287 847,114 1,675,274 15,397,078 12,727,022 Short term investments 377,704 133,943 53,203 1,031,410 10,064 9,745 4,043,562 5,389,308 959,325 954,858 9,271,921 7,319,257 44,560,728 50,581,937 59,276,507 65,420,458 Cash in hand and at bank 2,498,830 2,880,564 323,113 293,290 499,294 363,680 1,564,161 1,737,255 862,185 3,970,514 1,049,511 535,402 3,213,894 1,134,106 10,010,988 10,914,811 Segment current assets 6,956,768 5,911,095 4,560,510 5,045,777 7,887,916 6,461,335 10,271,703 10,864,175 2,591,071 4,998,643 11,625,533 8,790,570 48,957,852 53,702,341 92,851,353 95,773,936

Other current assets 6,454,209 4,390,258 Eliminations / adjustments (1,229,969) (1,402,434)Total current assets 98,075,593 98,761,760 Total assets 357,167,259 322,448,272

Insurance contract liabilities - - - - - - - - - - 32,088,277 30,230,539 - - 32,088,277 30,230,539 Interest bearing loans and borrowings - - 1,583,333 1,958,333 29,060 27,483 8,846,544 8,127,078 16,831,215 13,608,177 - - 12,000 12,000 27,302,152 23,733,071 Employee benefit liabilities 90,260 75,411 517,227 457,406 185,656 164,244 745,638 694,772 49,564 45,603 148,803 141,964 433,729 400,783 2,170,877 1,980,183 Other deferred liabilities - - - - 25,084 36,925 209,746 154,622 - - - - 512 527 235,342 192,074 Other non-current liabilities - 10,760 139,808 172,921 - - - - 10,132,632 6,520,687 - - - - 10,272,440 6,704,368 Segment non-current liabilities 90,260 86,171 2,240,368 2,588,660 239,800 228,652 9,801,928 8,976,472 27,013,411 20,174,467 32,237,080 30,372,503 446,241 413,310 72,069,088 62,840,235

Deferred tax liabilities 7,125,698 7,089,179 Eliminations / adjustments (5,992,109) (5,221,471)Total non-current liabilities 73,202,677 64,707,943

Trade and other payables 1,659,803 1,289,228 1,743,981 1,609,317 7,784,180 6,785,427 3,041,586 2,114,734 354,319 1,919,764 3,307,469 1,708,655 673,696 774,406 18,565,034 16,201,531 Short term borrowings 3,427,393 3,088,538 - - 1,183,396 - 1,209,450 1,017,946 - - - - 12,074 12,074 5,832,313 4,118,558 Interest bearing loans and borrowings - - 500,000 533,495 - 6,088 1,338,679 1,300,868 39,280 222,014 - - - - 1,877,959 2,062,465 Bank overdrafts 353,946 260,280 1,083,094 210,653 6,427,653 3,655,537 1,661,678 877,192 1,291,522 749,299 508,793 252,566 83,238 76,563 11,409,924 6,082,090 Segment current liabilities 5,441,142 4,638,046 3,327,075 2,353,465 15,395,229 10,447,052 7,251,393 5,310,740 1,685,121 2,891,077 3,816,262 1,961,221 769,008 863,043 37,685,230 28,464,644

Income tax liabilities 1,923,936 2,078,807 Other current liabilities 3,797,597 3,513,214 Eliminations / adjustments (1,470,815) (1,180,915)Total current liabilities 41,935,948 32,875,750 Total liabilities 115,138,625 97,583,693

Total segment assets 8,063,827 7,077,951 14,524,515 13,715,591 18,874,340 13,744,194 79,809,366 76,215,907 109,279,985 90,835,721 46,719,149 42,089,545 51,900,577 56,647,928 329,171,759 300,326,837 Total segment liabilities 5,531,402 4,724,217 5,567,443 4,942,125 15,635,029 10,675,704 17,053,321 14,287,212 28,698,532 23,065,544 36,053,342 32,333,724 1,215,249 1,276,353 109,754,318 91,304,879


21


Operating segment information Business segments The following table presents segment assets and liabilities of the Group’s business segments.


As at 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018 31.12.2018 31.03.2018

Property, plant and equipment 921,243 876,075 9,094,175 8,071,509 9,562,868 6,283,252 45,762,710 43,858,172 4,072,922 4,071,495 2,086,674 2,006,816 1,278,530 1,349,064 72,779,122 66,516,383 Lease rentals paid in advance - - 143,993 146,263 - - 12,835,476 11,356,004 228,625 230,543 - - 38,624 39,505 13,246,718 11,772,315 Investment property - 118,000 228,601 228,601 - - 4,119,798 4,119,798 29,089,356 27,830,177 - - 1,094,511 1,094,511 34,532,266 33,391,087 Intangible assets 11,886 12,624 248,590 6,242 188,632 44,700 279,188 315,102 119 2,191 1,379,857 206,363 95,449 72,617 2,203,721 659,839 Non-current financial assets 150,298 139,889 195,766 170,347 170,418 141,423 6,496,661 5,670,565 571,848 634,176 31,524,172 30,999,887 391,643 350,421 39,500,806 38,106,708 Other non-current assets 23,632 20,268 52,880 46,852 1,064,506 813,484 43,830 32,091 72,726,044 53,068,496 102,913 85,909 43,968 39,469 74,057,773 54,106,569 Segment non-current assets 1,107,059 1,166,856 9,964,005 8,669,814 10,986,424 7,282,859 69,537,663 65,351,732 106,688,914 85,837,078 35,093,616 33,298,975 2,942,725 2,945,587 236,320,406 204,552,901

Investments in equity accounted investees 12,804,726 10,760,644 - - - - 842,514 545,216 1,797,695 1,807,074 10,101,789 9,222,413 - - 25,546,724 22,335,347 Deferred tax assets 1,856,833 171,503 Goodwill 738,596 738,596 Eliminations / adjustments (5,370,893) (4,111,835)Total non-current assets 259,091,666 223,686,512

Inventories 1,157,776 717,600 1,636,018 1,445,001 4,662,811 3,874,804 343,737 333,244 17,634 15,348 12,688 14,624 336,116 311,024 8,166,780 6,711,645 Trade and other receivables 2,922,458 2,178,988 2,548,176 2,276,076 2,715,747 2,213,106 4,320,243 3,404,368 751,927 57,923 1,291,413 921,287 847,114 1,675,274 15,397,078 12,727,022 Short term investments 377,704 133,943 53,203 1,031,410 10,064 9,745 4,043,562 5,389,308 959,325 954,858 9,271,921 7,319,257 44,560,728 50,581,937 59,276,507 65,420,458 Cash in hand and at bank 2,498,830 2,880,564 323,113 293,290 499,294 363,680 1,564,161 1,737,255 862,185 3,970,514 1,049,511 535,402 3,213,894 1,134,106 10,010,988 10,914,811 Segment current assets 6,956,768 5,911,095 4,560,510 5,045,777 7,887,916 6,461,335 10,271,703 10,864,175 2,591,071 4,998,643 11,625,533 8,790,570 48,957,852 53,702,341 92,851,353 95,773,936

Other current assets 6,454,209 4,390,258 Eliminations / adjustments (1,229,969) (1,402,434)Total current assets 98,075,593 98,761,760 Total assets 357,167,259 322,448,272

Insurance contract liabilities - - - - - - - - - - 32,088,277 30,230,539 - - 32,088,277 30,230,539 Interest bearing loans and borrowings - - 1,583,333 1,958,333 29,060 27,483 8,846,544 8,127,078 16,831,215 13,608,177 - - 12,000 12,000 27,302,152 23,733,071 Employee benefit liabilities 90,260 75,411 517,227 457,406 185,656 164,244 745,638 694,772 49,564 45,603 148,803 141,964 433,729 400,783 2,170,877 1,980,183 Other deferred liabilities - - - - 25,084 36,925 209,746 154,622 - - - - 512 527 235,342 192,074 Other non-current liabilities - 10,760 139,808 172,921 - - - - 10,132,632 6,520,687 - - - - 10,272,440 6,704,368 Segment non-current liabilities 90,260 86,171 2,240,368 2,588,660 239,800 228,652 9,801,928 8,976,472 27,013,411 20,174,467 32,237,080 30,372,503 446,241 413,310 72,069,088 62,840,235

Deferred tax liabilities 7,125,698 7,089,179 Eliminations / adjustments (5,992,109) (5,221,471)Total non-current liabilities 73,202,677 64,707,943

Trade and other payables 1,659,803 1,289,228 1,743,981 1,609,317 7,784,180 6,785,427 3,041,586 2,114,734 354,319 1,919,764 3,307,469 1,708,655 673,696 774,406 18,565,034 16,201,531 Short term borrowings 3,427,393 3,088,538 - - 1,183,396 - 1,209,450 1,017,946 - - - - 12,074 12,074 5,832,313 4,118,558 Interest bearing loans and borrowings - - 500,000 533,495 - 6,088 1,338,679 1,300,868 39,280 222,014 - - - - 1,877,959 2,062,465 Bank overdrafts 353,946 260,280 1,083,094 210,653 6,427,653 3,655,537 1,661,678 877,192 1,291,522 749,299 508,793 252,566 83,238 76,563 11,409,924 6,082,090 Segment current liabilities 5,441,142 4,638,046 3,327,075 2,353,465 15,395,229 10,447,052 7,251,393 5,310,740 1,685,121 2,891,077 3,816,262 1,961,221 769,008 863,043 37,685,230 28,464,644

Income tax liabilities 1,923,936 2,078,807 Other current liabilities 3,797,597 3,513,214 Eliminations / adjustments (1,470,815) (1,180,915)Total current liabilities 41,935,948 32,875,750 Total liabilities 115,138,625 97,583,693

Total segment assets 8,063,827 7,077,951 14,524,515 13,715,591 18,874,340 13,744,194 79,809,366 76,215,907 109,279,985 90,835,721 46,719,149 42,089,545 51,900,577 56,647,928 329,171,759 300,326,837 Total segment liabilities 5,531,402 4,724,217 5,567,443 4,942,125 15,635,029 10,675,704 17,053,321 14,287,212 28,698,532 23,065,544 36,053,342 32,333,724 1,215,249 1,276,353 109,754,318 91,304,879




1 CORPORATE INFORMATION John Keells Holdings PLC is a public limited company incorporated and domiciled in Sri Lanka and listed on the Colombo

Stock Exchange. Ordinary shares of the company are listed on the Colombo Stock Exchange and Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange.

2 INTERIM CONDENSED FINANCIAL STATEMENTS The financial statements for the period ended 31 December 2018 , includes “the Company” referring to John Keells

Holdings PLC, as the holding company and “the Group” referring to the companies whose accounts have been consolidated therein.

3 APPROVAL OF FINANCIAL STATEMENTS The interim condensed financial statements of the Group and the Company for the 09 months ended 31 December 2018

were authorised for issue by the Board of Directors on 31 January 2019.

4 BASIS OF PREPARATION AND CHANGES TO THE GROUP’S ACCOUNTING POLICIES

4.1 Basis of preparation The interim condensed consolidated financial statements for the nine months ended 31 December 2018 have been

prepared in accordance with LKAS 34 Interim Financial Reporting.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual consolidated financial statements as at 31 March 2018.

The presentation and classification of the financial statements of the previous period have been amended, where relevant, for better presentation and to be comparable with those of the current period.

The interim condensed financial statements are presented in Sri Lankan Rupees (LKR) and all values are rounded to the nearest thousand except when otherwise indicated.

4.2 Fair value measurement and related fair value disclosures The fair values of all the financial assets and financial liabilities recognised during the period were not materially different

from the transaction prices at the date of initial recognition. There were no transfers between Level 1 and Level 2 and no transfers into or out of Level 3 categories as per the fair value hierarchy, during the period. The fair value changes on financial instruments in Level 3 category was properly recorded in the statement of other comprehensive income and there were no purchases and/or disposals during the period.

Fair valuation was done as of 31 December 2018 for all unquoted equity shares classified as Level 3 within the fair value hierarchy according to fair valuation methodology. Fair value would not significantly vary if one or more of the inputs were changed.

4.3 New standards, interpretations and amendments adopted by the Group The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are

consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 March 2018, except for the adoption of new standards effective as of 1 April 2018. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

The Group applies, for the first time, SLFRS 15 Revenue from Contracts with Customers and SLFRS 9 Financial Instruments that require restatement of previous financial statements. As required by LKAS 34, the nature and effect of these changes are disclosed below.

Several other amendments and interpretations apply for the first time in 2018, but do not have an impact on the interim condensed consolidated financial statements of the Group.

23


SLFRS 15 Revenue from Contracts with Customers SLFRS 15 supersedes LKAS 11 Construction Contracts, LKAS 18 Revenue and related Interpretations and it applies to

all revenue arising from contracts with customers, unless those contracts are in the scope of other standards. The new standard establishes a five-step model to account for revenue arising from contracts with customers. Under SLFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract.

The Group adopted SLFRS 15 using the full retrospective method of adoption. Based on the assessment performed the Group concluded that SLFRS 15 does not have a material impact on Group’s consolidated financial statements.

Sale of goods Under SLFRS 15, revenue is recognised upon satisfaction of performance obligation. The revenue recognition occurs at a

point in time when control of the asset is transferred to the customer, generally on delivery of the goods.

Rendering of services Under SLFRS 15, the Group determines at contract inception whether it satisfies the performance obligation over time or

at a point in time. For each performance obligation satisfied over time, the Group recognises the revenue over time by measuring the progress towards complete satisfaction of that performance obligation.

SLFRS 9 Financial Instruments SLFRS 9 Financial Instruments replaces LKAS 39 Financial Instruments: Recognition and Measurement, bringing together

all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting.

With the exception of hedge accounting, which the Group applied prospectively, the Group has applied SLFRS 9 retrospectively, with the initial application date of 1 April 2018. The Group has taken an exception not to restate comparative information for prior periods with respect to classification and measurement requirements.

Classification and measurement Except for certain trade receivables, under SLFRS 9, the Group initially measures a financial asset at its fair value plus, in the

case of a financial asset not at fair value through profit or loss, transaction costs.

Under SLFRS 9, debt financial instruments are subsequently measured at fair value through profit or loss (FVPL), amortised cost, or fair value through other comprehensive income (FVOCI). The classification is based on two criteria: the Group’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding.

The new classification and measurement of the Group’s debt financial assets are, as follows: Debt instruments at amortised cost for financial assets that are held within a business model with the objective to hold

the financial assets in order to collect contractual cash flows that meet the SPPI criterion. This category includes the Group’s Trade and other receivables, and Loans included under Other non-current financial assets.

Debt instruments at FVOCI, with gains or losses recycled to profit or loss on derecognition. Financial assets in this category are the Group’s quoted debt instruments that meet the SPPI criterion and are held within a business model both to collect cash flows and to sell. Under LKAS 39, the Group’s quoted debt instruments were classified as available-for-sale (AFS) financial assets.

Other financial assets are classified and subsequently measured, as follows: Equity instruments at FVOCI, with no recycling of gains or losses to profit or loss on derecognition. This category

only includes equity instruments, which the Group intends to hold for the foreseeable future and which the Group



has irrevocably elected to so classify upon initial recognition or transition. The Group classified its unquoted equity instruments as equity instruments at FVOCI. Equity instruments at FVOCI are not subject to an impairment assessment under SLFRS 9. Under LKAS 39, the Group’s unquoted equity instruments were classified as AFS financial assets.

Financial assets at FVPL comprise derivative instruments and quoted equity instruments which the Group had not irrevocably elected, at initial recognition or transition, to classify at FVOCI. This category would also include debt instruments whose cash flow characteristics fail the SPPI criterion or are not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell. Under LKAS 39, the Group’s quoted equity securities were classified as AFS financial assets.

The assessment of the Group’s business models was made as of the date of initial application, 1 April 2018, and then applied retrospectively to those financial assets that were not derecognised before 1 April 2018. The assessment of whether contractual cash flows on debt instruments are solely comprised of principal and interest was made based on the facts and circumstances as at the initial recognition of the assets.

The accounting for the Group’s financial liabilities remains largely the same as it was under LKAS 39. Similar to the requirements of LKAS 39, SLFRS 9 requires contingent consideration liabilities to be treated as financial instruments measured at fair value, with the changes in fair value recognised in the statement of profit or loss.

Impairment The adoption of SLFRS 9 has fundamentally changed the Group’s accounting for impairment losses for financial assets by

replacing LKAS 39’s incurred loss approach with a forward-looking expected credit loss (ECL) approach.

SLFRS 9 requires the Group to record an allowance for ECLs for all loans and other debt financial assets not held at FVPL.

ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. The shortfall is then discounted at an approximation to the asset’s original effective interest rate.

For trade and other receivables, the Group has applied the standard’s simplified approach and has calculated ECLs based on lifetime expected credit losses

Hedge accounting The Group applied hedge accounting prospectively. At the date of the initial application, all of the Group’s existing

hedging relationships were eligible to be treated as continuing hedging relationships. Consistent with prior periods, the Group has continued to designate the change in fair value of the entire forward contract in the Group’s cash flow hedge relationships and, as such, the adoption of the hedge accounting requirements of SLFRS 9 had no significant impact on the Group’s financial statements.

5 OPERATING SEGMENTS The Group amended the reporting structure of its businesses, where the Consumer Foods and Retail industry group was

segregated into two separate industry groups. Additionally, the Group’s Office Automation business, which was previously under the Information Technology industry group was classified under the Retail industry group, given the retail nature of its operations. The Information Technology industry group is included under Other, including Plantation Services industry group and the comparatives have been reconstituted accordingly.

Hence for management purposes, the Group is now organised into business units based on their products and services and has seven reportable operating segments as follows:

Transportation Consumer Foods Retail Leisure Property Financial Services Others

25


6 CHANGE IN INSURANCE CONTRACT LIABILITIES The results of Union Assurance PLC are consolidated line by line into the Group’s consolidated income statement. The

change in insurance contract liabilities represents the transfer to the Life Fund, the difference between all income and expenditure attributable to life policy holders during the period.

7 TAX EXPENSE

Group Company

For the nine months ended 31 DecemberLKR ’000s

2018 2017 2018 2017

Income statement

Current income tax 1,711,718 2,804,110 911,551 1,034,659

Deferred tax charge/(reversal) (1,069,668) 234,620 - -

642,050 3,038,730 911,551 1,034,659

Other comprehensive Income

Deferred tax charge/(reversal) 32,404 22,708 - -

32,404 22,708 - -

Current income tax expense Union Assurance PLC (UA), a subsidiary of the Group is liable for income tax, in terms of the Inland Revenue Act No. 10 of

2006 and amendments thereto, till 31st March 2018.

From 1 April 2018 onwards, the gains and profits from the Life Insurance Business are ascertained in terms of Section 67 of the Inland Revenue Act No. 24 of 2017 which introduces an approach based on surplus distribution and net investment income of the shareholders fund.

Deferred tax asset Up to the year ended 31 December 2017, UA had not recognized a Deferred Tax asset against tax losses due to uncertainty

regarding availability of taxable profits.

With the introduction of the new Tax base in terms of Section 67 of the Inland Revenue Act No. 24 of 2017, the Company will have taxable income from the year ending 31 December 2018, based on the Company’s historical experience and future plans and UA will be eligible to claim its brought forward tax losses against its taxable income within a period of 6 years. Accordingly, during the quarter ended 30 September 2018, UA recognized a deferred tax asset amounting to LKR 1.53 billion arising from brought forward tax losses as at 31 December 2017 after assessing the availability of future taxable profits for utilization.

Deferred tax liability In terms of Section 67 of the Inland Revenue Act No. 24 of 2017, UA is of the view that there will not be material temporary

differences arising, which will result in a Deferred Tax Liability.

Deferred tax expense Deferred tax is an estimate computed based on the assessment of available information as at the reporting date.

Hence these estimates are subject to changes based on future developments / changes to any information, which the assumptions are based on, at the time of estimation. Such changes to the estimates will be adjusted during the period in which changes occur.



8 RELATED PARTY TRANSACTIONS

Group Company


2018 2017 2018 2017

Transactions with related parties

Subsidiaries

Purchases of goods - - 5,817 16,973

Rendering of services - - 954,663 628,923

Receiving of services - - 102,559 44,256

Rent paid - - 33,564 28,880

Equity accounted investees

Sales of goods 38,582 5,681 - -

Rendering of services 491,794 483,006 260,978 254,533

Receiving of services 609,650 373,133 6,636 1,228

Interest received 608,696 199,146 510,456 94,534

Interest paid 491 1,340 1 -

Key management personnel (KMP)

Sales of goods - - - -

Close family members of KMP

Sales of goods - - - -

Companies controlled/jointly controlled/significantly influenced by KMP and their close family members of KMP

Sales of goods - -

Post employment benefit plan - -

Contributions to the provident fund 196,519 203,057 47,649 48,387

27


9 SHARE INFORMATION9.1 Stated capital Stated capital is represented by the number of shares in issue as given below:

As at 31-12-2018 30-09-2018

Ordinary shares 1,387,528,658 1,387,528,658

* Includes global depository receipts of 1,320,942 (30.09.2018 - 1,320,942).

9.2 Public shareholdings Percentage of shares held by the public and the number of public shareholders is as given below:

As at 31-12-2018 30-09-2018

Public shareholding (%) 98.53 98.53

Public shareholders 11,104 11,682

Compliant under option 1 - Float adjusted market capitalization (LKR Bn) 218.33 179.78

9.3 Net assets per share Net assets per share have been calculated, for all periods, based on the number of shares in issue as at 31 December 2018.

9.4 Market price per share The Company’s highest, lowest and last traded market price is as given below:

For the quarter ended 31 December 2018 LKR

2017 LKR

Highest 161.90 166.10

Lowest 126.00 145.00

Last traded 159.70 148.50

9.5 Directors’ share holdings The number of shares held by the Board of Directors (including their spouses) are as given below:

As at 31-12-2018 30-09-2018

S C Ratnayake - Chairman/CEO (Retired w.e.f. 31 December 2018) 9,241,144 9,241,144

K N J Balendra - Deputy Chairman 10,914,400 10,914,400

J G A Cooray - Group Finance Director 207,105 207,105

R Coomaraswamy Nil NA

D A Cabraal 137 137

A N Fonseka Nil Nil

M A Omar Nil Nil

M P Perera Nil Nil

S S H Wijayasuriya Nil Nil



9.6 Twenty largest shareholders Twenty largest shareholders of the Company is as given below:

As at 31-12-2018 30-09-2018

Number ofshares

% Number ofshares

%

1 Mr S E Captain 150,984,593 10.9 143,336,028 10.32 Broga Hill Investment Ltd 141,854,717 10.2 141,854,717 10.23 Melstacorp PLC 116,776,852 8.4 55,127,818 4.04 Paints & General Industries Ltd 101,394,165 7.3 100,000,456 7.25 Schroder International Selection Fund 46,904,101 3.4 73,060,787 5.36 HWIC Asia Fund 36,000,982 2.6 36,000,982 2.67 Northen Trust Co S/A Edgbaston Asian Equity Trust 32,319,464 2.3 29,043,183 2.18 Mr R S Captain 28,221,333 2.0 2,494,552 0.29 Citibank Newyork S/A Norges Bank Account 21,023,402 1.5 21,023,402 1.510 Aberdeen Global Asia Pacific Equity Fund 20,945,908 1.5 26,257,908 1.9

11 Aberdeen Global-Asian Smaller Companies Fund 20,632,162 1.5 23,432,162 1.712 Mr K Balendra 20,006,476 1.4 20,006,476 1.413 Employees Trust Fund 19,825,463 1.4 19,825,463 1.414 Aberdeen Asian Smaller Companies investment 19,793,572 1.4 10,868,372 0.815 BBH Luxfidelity Fund-Pacific 19,060,108 1.4 19,060,108 1.416 First State Investments ICVC 18,471,219 1.3 15,486,461 1.117 London- Edinburgh Dragon Trust PLC 15,447,390 1.1 15,447,390 1.118 Mr C S De Fonseka 13,226,598 1.0 12,896,423 0.919 Mrs S A J De Fonseka 13,116,826 0.9 12,935,666 0.920 Schroder Asian Growth Fund 11,282,414 0.8 11,282,414 0.8

10 DIVIDENDS PAID


2018 2017

Final Dividend for 2017/2018 LKR 2.00 (2016/2017 LKR 2.00) 2,775,057 2,774,934

Interim Dividend for 2018/2019 LKR 2.00 (2017/2018 LKR 2.00) 2,775,057 2,775,002

11 CONTINGENCIES, CAPITAL AND OTHER COMMITMENTS There has been no significant change in the nature of the contingencies and other commitments, which were disclosed

in the annual report for the year ended 31 March 2018.

12 SHARE REPURCHASE The Board of Directors of John Keells Holdings PLC (the Company) resolved on 11 November 2018 to repurchase up to

a maximum of 69,376,433 of its Ordinary Shares, amounting to 5 per cent of the total number of issued shares of the Company at LKR 160.00 per share., The Company received acceptance of 32,189,118 Ordinary Shares (which amounts to acceptance of 46 per cent of the offer) and 37,187,315 shares were allocated for repurchase based on the additional applications. A total amounting to LKR 11.10 Bn was paid out on 25 January 2019.

13 EVENTS AFTER THE REPORTING PERIOD Interim Dividend The Board of Directors of the Company declared a second interim dividend of LKR 2.00 per share for the financial year

2018/19. As required by section 56 (2) of the Companies Act No. 07 of 2007, the Board of Directors had confirmed that the Company satisfied the solvency test in accordance with section 57 of the Companies Act No. 07 of 2007, and obtained a certificate from auditors, prior to declaring the dividend, which is to be paid on 22 February 2019.

29

CORPORATE INFORMATION

Name of CompanyJohn Keells Holdings PLC

Legal FormPublic Limited Liability CompanyIncorporated in Sri Lanka in 1979Ordinary Shares listed on the Colombo Stock ExchangeGDRs listed on the Luxembourg Stock Exchange

Company Registration No.PQ 14

DirectorsK N J Balendra - Chairman/CEOJ G A Cooray - Deputy Chairman /Group Finance DirectorD A CabraalR Coomaraswamy (appointed w.e.f. 1 October 2018)A N FonsekaM A OmarM P PereraS S H Wijayasuriya

Senior Independent DirectorA N Fonseka

Audit CommitteeA N Fonseka - ChairmanD A CabraalM P Perera

Human Resources and Compensation CommitteeD A Cabraal - ChairmanM A OmarS S H Wijayasuriya

Nominations CommitteeM A Omar - ChairmanK N J BalendraM P PereraS S H WijayasuriyaR Coomaraswamy

Related Party Transaction Review CommitteeM P Perera - ChairpersonK N J BalendraD A CabraalA N Fonseka

Registered Office of the Company117 Sir Chittampalam A. Gardiner Mawatha,Colombo 2, Sri LankaTelephone : +94 11 230 6000Internet : www.keells.comEmail : [email protected]

SecretariesKeells Consultants (Private) Limited117 Sir Chittampalam A. Gardiner Mawatha,Colombo 2, Sri LankaTelephone : +94 11 230 6245Facsimile : +94 11 243 9037

Investor RelationsJohn Keells Holdings PLC117 Sir Chittampalam A. Gardiner Mawatha,Colombo 2, Sri LankaTelephone : +94 11 230 6166Facsimile : +94 11 230 6160Email : [email protected]

Sustainability, Enterprise Risk Management and Group Initiatives

186 Vauxhall Street, Colombo 2, Sri LankaTelephone : +94 11 230 6182Facsimile : +94 11 230 6249Email : [email protected]

Contact for MediaCorporate Communications DivisionJohn Keells Holdings PLC117 Sir Chittampalam A. Gardiner Mawatha,Colombo 2, Sri LankaTelephone : +94 11 230 6191Email : [email protected]

AuditorsErnst & YoungChartered AccountantsP.O. Box 101Colombo, Sri Lanka

Bankers for the CompanyBank of CeylonCitibank N.A.Commercial Bank of CeylonDeutsche Bank A.G.DFCC BankHabib BankHatton National BankHongkong and Shanghai Banking CorporationMCB BankNational Savings BankNations Trust BankNDB BankPan Asia Banking CorporationPeople’s BankSampath BankSeylan BankStandard Chartered Bank

Depository for GDRsCitibank N.A. New York

www.keells.com

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