Investor Presentation

Review of 1Q FY2019

Version 1.2

This Investor Presentation should be read in conjunction with the JKH Annual Report 2017/18 to obtain a more comprehensive understanding of the drivers and strategies of our businesses

About JKH

▪ Market cap of USD 1.30 billion

▪ No controlling shareholder - 98.5% free float

▪ Debt : Equity ratio of 16%

▪ The Board comprises of three Executive Directors and five

Independent Non-Executive Directors

2

Contribution to net profits; a gradual rebalancing of portfolio profitability

2015/16

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 driven the shift in the composition of its earnings with 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

22%

20%

5%11%

8%

34%

Transportation

Lesiure

Property

Consumer Foods

Retail

FinancialServices

23%

32%4%

17%

10%

15%21%

31%

10%

16%

7%

14%

Cumulative profitability update : for the year ended 31 March 2018

PAT to equity holders of JKH

Total PAT 21,021 16,275 29

Diluted earnings per share (Rs.) 15.15 11.84 28

Recurring PAT 18,320 16,119 14

Refer page 62 of the JKH Annual Report 2017/18 for commentary on recurring adjustments

4

Industry GroupFY2018 FY2017 YoY Growth

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

Transportation 3,073 2,968 4

Leisure 2,822 4,165 (32)

Property 745 508 47

Consumer Foods 1,515 2,192 (31)

Retail 1,145 1,306 (12)

Financial Services 8,016 1,978 305

Profitability update : Q1 FY2019

PAT to equity holders of JKH

Industry GroupQ1 FY2019

(Rs. Million)Q1 FY2018

(Rs. Million)YoY Growth (%)

Transportation 827 770 7

Leisure* (224) 100 (324)

Property (3) 42 (107)

Consumer Foods 194 366 (47)

Retail 144 283 (49)

Financial Services 527 235 124

Total PAT 2,186 2,833 (23)

5

*Note profitability was impacted by the closure of “Cinnamon Hakura Huraa Maldives” for reconstruction, partial closure of “Ellaidhoo Maldives by Cinnamon”. “Bentota Beach by Cinnamon” was closed for the construction of a new hotel in May 2017 and is scheduled to open by end 2019.

Note the following adjustments:1) The above graph excludes the capital employed at Cinnamon Life as it is a project under development2) Investment property and revaluation gains/losses for FY16 ,FY17 and FY183) 2013 Rights issue funds, 2015 and 2016 Warrant funds and debt drawn at Cinnamon Life4) Capital employed in non-operational properties of the Group has been allocated to “Property Excl. Cinnamon Life”5) The adjusted capital employed considers the effective share based on the ownership

Adjusted effective capital employed

(Rs.bn)

Portfolio evaluation 2017/18; returns vs. effective capital deployed

10 20 30 40 50 60 70 80 90 100 110 120 130 140 150

10

20

30

40

50

60

Industry group % of effective capital employed

Financial Services 5

Retail 2

Consumer Foods 3

Information Technology 1

Transportation 9

Leisure 20

Property (Excl. Cinnamon Life) 10

Cinnamon Life 20

Financial Services - 54%

Retail - 36%

Consumer Foods - 34%

IT - 21%Transportation - 18%

Leisure - 8%

Property (Excl. Cinnamon Life) - 6%

Cinnamon Life – (0.1%)

▪ In addition, the Holding Company accounts for 28 per cent of effective capital employed (Rs.45 bn), which consists primarily of cash

Hurdle Rate - 15%

6

Investment pipeline of over USD 600 million during FY2019 and FY2020

▪ Aggressive investment pipeline exceeding USD 600 million over the next two years. Given the gestation period, the realisation of benefits from these investments is expected to accrue from FY2021 onwards

▪ Approximately USD 160 million of these investments to be funded through available/internally generated cash. Some of the key projects include:

Project Expected completion

Cinnamon Life CY2020

Reconstruction of Bentota Beach by Cinnamon End 2019

Reconstruction of Cinnamon Hakura Huraa Maldives End 2019

Cinnamon red Kandy FY2021

Frozen Confectionery manufacturing plant Completed 1Q FY2019

Roll out of 80 Retail outlets FY2019 & FY2020

Retail Centralised Distribution Centre 2H FY2019

JK Logistics - construction of a warehouse FY2020

7

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”

▪ 3 Resort properties in the Maldives (340 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

8

▪ 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

9

Sector

FY2018 FY2017

Occupancy (%) ARR(US $) EBITDA Margin (%)

Occupancy (%)

ARR (US $) EBITDA Margin (%)

City Hotels* 64 127 27 69 133 36

Resorts in Sri Lanka 81 91 28 80 93 33

Resorts in Maldives 82 263 24 89 261 33

SectorQ1 FY2019 Q1 FY2018

Occupancy (%) ARR (US $) Occupancy (%) ARR (US $)

City Hotels* 43 128 58 125

Resorts in Sri Lanka 74 69 73 74

Resorts in Maldives 73 298 76 266

*Note City Hotels occupancy and ARR excludes Cinnamon red

Occupancies and average room rates

▪ City Hotels occupancies and ARRs were impacted by the increase in room inventory

▪ The decrease in EBITDA margins of the Sri Lankan Resorts segment is on account of the closure of “Bentota Beach by Cinnamon”

▪ Maldivian Resorts affected by the partial closure of “Cinnamon Dhonveli” and “Ellaidhoo by Cinnamon” for refurbishment

10

YearTourist arrivals

(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

Jan-Jul’18 1,382 14

Arrivals from China and India

Year China India

2014 128,166 242,734

2015 214,783 316,247

2016 271,577 356,729

2017 268,952 384,628

Jan-Jul ‘18 163,754 237,369

▪ Tourist arrivals from January- July 2018 was 1,382,476 a growth of 13.7% as compared to the 1,215,926 recorded in the comparative period of the previous year

▪ Arrivals for the quarter (April- June 2018) increased by 12.6%

Source: Sri Lanka Tourism Development Authority

Encouraging growth momentum of tourist arrivals to Sri Lanka

-

500

1,000

1,500

2,000

2,500

Annual tourist arrivals to Sri Lanka (‘000)

11

Source: Sri Lanka Tourism Development Authority

Significant growth in Asian arrivals to Sri Lanka

12

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2010 2011 2012 2013 2014 2015 2016 2017

Tou

rist

Arr

ival

s

Calendar Year

Source: Governmental tourism websites

Tourist arrivals to Sri Lanka lag well below regional peers

0

5

10

15

20

25

30

35

40

Malaysia Indonesia Thailand Vietnam Cambodia Sri Lanka

Arr

ival

s (

Mn

s)

1990 2017 Actual/Target

13

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

14

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

▪ Expected 5-star room supply:

Development No. of roomsYear of

completion

Cinnamon Life 800 2020

ITC 400 2021

Ritz Carlton 450 2022

Total rooms 1,650

▪ “Cinnamon Life” is slated for completion in the calendar year 2020 with the residential apartments and office complex ready for hand over and occupation by early 2020

Pipeline of room inventory to support arrivals trajectory

15

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

16

▪ 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

17

53,796

38,000

2,187

-

10,000

20,000

30,000

40,000

50,000

60,000

KL Ho Chi Minh City Colombo

Annual condominium supply in regional cities

▪ Key real-estate sites in Colombo;

City Centre

▪ Cinnamon Grand premises : 8.03 acres (freehold land)

▪ Cinnamon Lakeside premises : 7.65 acres (leasehold land till 2081)

▪ Cinnamon Life : 10.13 acres (under development)

Developable freehold land within the city limits

▪ Vauxhall Street, Colombo 2 : 9.38 acres

▪ Union place, Colombo2 : 0.58 acres

▪ Mackinnons Keells, Colombo 1 : 0.45 acres

▪ Keells Realtors, Colombo 15 : 1.22 acres

▪ Two neighbourhood malls, one with freehold land of approximately 6.6 acres, in addition to a 17.7 acre land extent located in an emerging township, identified under the Government led urban development strategy (Megapolis)

One of the largest privately held land banks in prime city locations

18

Developable land bank of over 36 acres in central Colombo

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

▪ 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

19

Cinnamon Lakeside

7.40 acres leasehold land

Vauxhall Street

9.3 acres freehold land

Union Place

1.5 acres

Crescat City

8.03 acres freehold land

Cinnamon Life

7.1 acres freehold

3.03 acres leasehold

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

Colombo - Katunayake expressway/ outer circular expressway connecting to the southern expressway

Port access elevated highway

Bandaranaike International

Airport

Thudella 18 Acres

freehold

Kapuwatta 6.6

Acres freehold

Port City Development

20

Robust development pipeline; on going developments

1. Cinnamon Life

• Revenue recognition of Cinnamon Life will be on completion in CY2020

2. “Tri-Zen”- an 891 apartment residential development in central Colombo, with expected completion in FY2022/23 (pre-sales have commenced)

3. Master planning has been initiated for the 18-acre land under JK Thudella Properties (Private) Limited

4. Master planning has been initiated for the jointly held 9.38-acre property under Vauxhall Land Development (Private) Limited (VLDL)

5. Finalising the acquisition of approximately 100 perches of land located in the heart of Colombo, for a niche residential development which is expected to be launched in 4Q FY2019

6. Future development of the land bank held at Rajawella Holdings Limited discussed in detail overleaf

Cinnamon Life Total unitsNumber of units sold as at

30 June ‘18The Residence at Cinnamon Life 231 132

The Suites at Cinnamon Life 196 107

Cinnamon Life - commercial complex 10 floors 4 floors

21

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

22

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

Cinnamon Life Integrated Resort

23

Integrated development in Colombo

24

Integrated development in Colombo

25

Cinnamon Life – construction progress

26

27

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

800 guest room hotel. Include conferencing, banqueting, 7 specialty restaurant 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

28

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

29

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

30

Capacity enhancements in the Port of Colombo

31

Sustained volume growth in the Port of Colombo

4.31

4.91

5.19

5.74

6.21

2013 2014 2015 2016 2017

Mil

lio

n T

EU

s

32

▪ Container handling capacity in the region

▪ Port of Colombo estimated utilisation CY2017 : 78 per cent

▪ SAGT Domestic : Transshipment volume mix (FY2018): 19:81

Port Container handling capacity (TEUs)

Colombo 8 million*

Hong Kong 21 million

Singapore 40 million

Shanghai 36 million

Volumes (TEU) Q1 FY2019 Q1 FY2018 % Change

SAGT 504,312 404,185 25

SLPA 547,629 505,114 8

CICT 656,986 575,948 14

Total 1,708,927 1,485,246 15

Sources: Government websites/ Sri Lanka Ports Authority

Rapid absorption of capacity in the Port of Colombo

33

Sources: Government websites/ Sri Lanka Ports Authority

Opportunities for growth in the Bunkering businesses

Bunkering Business (Lanka Marine Services)

▪ Total volumes at LMS grew by 20 per cent during 1Q FY2019

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 up to approx. 250,000 CBM in the year 2017/18

34

Consumer Foods - overview

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

Key performance indicators (%) FY2016 FY2017 FY2018

Growth of ice cream volumes 15 11 (4)

Growth of beverage volumes 22 10 (16)

Growth of convenience food volumes 11 (4) 3

PBT growth- Consumer Foods 65 19 (31)

EBIT margin - Consumer Foods 22 24 17

Key performance indicators (%) Q1 FY2019

Growth of ice cream volumes 3

Growth of beverage volumes (37)

Growth of convenience foods volumes 12

▪ A sugar tax on carbonated beverages was implemented from 9th November 2017 onwards, which resulted in the selling prices across the CSD portfolio being increased by approximately 40 per cent. Other mitigation strategies are discussed overleaf

▪ Beverage : Frozen Confectionary revenue mix stood at 49:51 as at 30 June 201835

52.0

39.0

31.4

19.0

10.0

Philippines Thailand Singapore Malaysia Sri Lanka

Carbonated Soft Drinks - Per Capita Consumption (Litres)

Low consumption patterns and penetration reflects potential for sustained growth

▪ The bulk-impulse mix of regional markets are highly skewed towards the impulse markets, demonstrating the significant growth potential for the impulse category

▪ CCS reformulated its flagship flavours to replace approximately 40 per cent of sugar content with the natural sweetener Stevia while also implementing the following initiatives;

▪ Launch of sugar free CSD variants - branded “GO Sugar Free▪ Acceleration of non-CSD product launches (flavoured milk and water branded under Elephant

House, and additional flavours of fruit juice branded under “Fit-O”)

70%30%

8%

92%

Sri Lanka Thailand

56%

44%

Malaysia

Bulk vs. Impulse Split - RegionalImpulse Bulk

36

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

70

49 4843 40

16

Singapore Malaysia Hong Kong Taiwan Thailand Sri Lanka

Modern Retail Penetration (%)

Retail - overview

Present share of modern retail No. of outlets

Keells * 82

Cargills 357

Arpico 45

Laugfs 34

* As at 30 June 2018

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

37

▪ 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

▪ Over 160 outlets expected by FY2019/20

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

FY2018/19

Keells Super forecasted coverage

No. of new stores expected

FY2019 40

FY2020 40

Rapid expansion to capitalise on low retail penetration levels

38

Retail - overview

Key performance indicators FY2015 FY2016 FY2017 FY2018 FY2019-YTD

Same store sales growth (%) 15.3 12.5 9.5 5.7 1.4

Same store foot fall growth (%) 10.6 10.1 6.8 3.8 3.9

Profitability margin FY2015 FY2016 FY2017 FY2018

EBIT margin (%) 3.2 5.8 5.4 4.0

PBT margin (%) 3.1 5.4 5.6 4.0

▪ The Q1 FY2019 same store sales were impacted by a decline in average basket value as a result of subdued market sentiment, in addition to the temporary impact stemming from the rapid store expansion plans of the sector and the corresponding “cannibalisation” effect it entailed.

• Profitability margins impacted by the imposition of control prices on essential items, cost of expanding and operating new stores coupled with the cost associated with rebranding and refitting stores

• Although outlets are profitable in the first year of operations, the aggressive outlet rollout undertaken has resulted in margin contraction in the short term as a result of the ramp up period of a new outlet

• The sector will undertake planned capex of approximately USD 90 million over the next two years for an aggressive expansion of the store footprint and construction of a centralised Distribution Centre. The projects will be funded via debt given the low gearing ratio of the business

39

▪ Union Assurance (JKH Stake : 90%)

▪ Highest new business growth in the year 2017

▪ 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 - 53% growth in 2017

Financial Services – Insurance sector overview

0%

1%

2%

3%

4%

5%

6%

Life Insurance Penetration as a % of GDP - 2016

Global average – 3.47%

45

54

64

71

2014 2015 2016 2017

Rs.

bn

Life Insurance Gross Written Premiums

40

Key performance indicators CY2013 CY2014 CY2015 CY2016 CY2017

Market share 14% 13% 13% 13% 14%

GWP growth 8% 8% 17% 19% 22%

Recurring net profit growth 48% 11% 23% 17% 205%

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

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

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

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

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

Financial Services – Insurance sector overview

41

Key performance indicatorsQ4 FY 2018

(Jan-Mar 2018)Q1 FY 2019

(Apr-Jun 2018)

GWP growth (YoY) 12% 13%

Net profit Rs. 304 million Rs. 300 million

Net profit growth (YoY) 181% 349%

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

Key performance indicators CY2013 CY2014 CY2015 CY2016 CY2017

Loans and advances growth 12.1% 19.5% 22.4% 23.7% 25%

Industry (LCB’s) 8.5% 12.3% 23.5% 17.7% 19.2%

Return on equity 19.6% 19.8% 18.2% 17.7% 17.4%

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

Net Interest Margin 5.8% 5.8% 5.5% 5.1% 4.4%

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

NPL ratio (%) 3.51 4.16 2.77 2.80 2.72

Deposit base (Rs. Bn) 95.7 111.0 129.1 151.5 194.3

Asset base (Rs. Bn) 142.1 158.8 176.3 211.2 268.3

Net Profit (Rs. Mn) 2,136 2,537 2,614 2,869 3,372

Financial Services – Banking sector overview

42

Key performance indicators Q4 FY 2018 (Jan-Mar 2018) Q1 FY 2019 (Apr-Jun 2018)

Net profit Rs.939 million Rs. 936 million

Net profit growth (YoY) 30% 33%

Loan growth (YoY) 23% 24%

Net Interest Margin 5.5% 5.0%

NPL Ratio 2.62% 3.06%

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 FY2019, and does not

constitute an issue prospectus or a financial analysis. This Investor Presentation should be read in conjunction with the JKH Annual Report 2017/18 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.

43