jkh interim june 2013

7/27/2019 JKH Interim June 2013

1/24

I N T E R I M C O N D E N S E D F I N A N C I A L S T A T E M E N T S T H R E E M O N T H S E N D E D 3 0 T H J U N E 2 0 1 3

JOHN KEELLS

HOLDINGS PLC

Keepi ng our eye on the next l evel


2/24

Keepi ng our eye on the next l evel

Chairmans Message 1

Consolidated Income Statement 3

Consolidated Statement o

Comprehensive Income 4

Consolidated Statement oFinancial Position 5


Cash Flow 6


Changes in Equity 8

Company Income Statement 9

Company Statement o

Comprehensive Income 10Company Statement o Financial

Position 11

Company Statement o Cash Flow 12

Company Statement o

Changes in Equity 13

Operating Segment Inormation 14

Notes to the Interim Condensed

Financial Statements 16


3/24

Interim Financial Statements l 1

Chairmans Message Financial Inormation

CHAIRMANS MESSAGE

Dear Stakeholder,

The proft attributed to the equity holders or the frst quarter

o the fnancial year 2013/14 at Rs.1.59 billion reects a

4 per cent decrease over the corresponding period in theprevious fnancial year.

The Group proft beore tax (PBT) or the frst quarter o the

fnancial year 2013/14 at Rs.2.20 billion was a decrease o

8 per cent over the PBT o Rs.2.40 billion recorded in the

corresponding period in the previous fnancial year.

The revenue or the frst quarter o the fnancial year

2013/14 o Rs.20.01 billion remained in line with the

revenue recorded during the same period last year.

The results o the frst quarter o the fnancial year are areection o current macroeconomic challenges emanating

rom the decisive actions taken by the Government, including

the implementation o cost based electricity pricing, over the

past year to stabilise an over-heated economy and reduce

the budget defcit. Whilst these macroeconomic actors

may have a negative impact on the perormance o the

Group in the short term, we believe that your Group is well

positioned to capitalise on the emerging growth opportunities

because o its strong undamentals and we, thereore, remain

optimistic o the uture. Single digit ination, lower interest

rates and the planned mega inrastructure developmentsare expected to translate into increased demand which will

contribute positively to economic growth.

Taking this view o the uture, your Company has announced

an integrated resort development, subject to the Project

Company, Waterront Properties (Private) Limited, receiving

all the requisite approvals and your Company receiving

shareholder approval, where necessary. The Project Company

has entered into an agreement with the Board o Investment

o Sri Lanka (BOI) as a precursor to acilitating the requisite

approvals. Subsequent to the signing o the BOI agreement,

the frst Gazette as per the Strategic Development ProjectsAct was published by the Government on the 18th o July.

The Waterront Project is an integrated resort located at

Glennie Street/Justice Akbar Mawatha and consists o

multiple businesses including a luxury hotel, convention

center, entertainment and gaming acilities, international

standard shopping mall, luxury condominiums, serviced

apartments and ofce space. The concept o integrated

resorts has gained popularity, particularly in the South East

Asian region. Sri Lankas proximity to these destinations

and to key source markets strengthens its oering as an

exciting, and emerging, leisure destination in South Asia.

Transportation

The Transportation industry group PBT o Rs.748 million

in the frst quarter o 2013/14 was a decrease o 22 per

cent compared to the irst quarter o the previous inancial

year [2012/13 Q1: Rs.957 million]. The decline in PBT

was mainly on account o a lower contribution rom the

bunkering business as a result o lower volumes andreduced margins, a phenomenon experienced by the

industry globally, whilst the ports, logistics and airline

businesses also saw reductions on the back o changes

in volumes and revenues. With the completion and

commencement o operations o the South Terminal,

the capacity constraints in the Port o Colombo will be

overcome and the Port will be well geared to cater to

increased domestic and transshipment volumes.

Leisure

The Leisure industry group PBT o Rs.461 million in the

irst quarter o 2013/14 was a decrease o 29 per cent over

the irst quarter o the previous inancial year [2012/13

Q1: Rs.648 million], primarily as a result o the lower than

expected perormance o Sri Lanka Resorts with the new

resort, Cinnamon Bey, in particular, still being established

in the market. Additionally, there was an impact on lower

interest rate bearing oreign currency denominated loans

as a result o a depreciated Sri Lankan Rupee at the end

o the quarter. Whilst overall tourism arrivals to the country

continue to demonstrate growth, they have not translated

into room nights in the star category hotels. This, we

believe, is the result o a combination o the economicissues in Europe and the lack o a ocused destination

marketing and branding strategy. However, occupancy

continued to be strong in the City Hotels where we

increased our market share, while the Maldivian Resorts

sector perormed well beneitting rom higher average room

rates and increased occupancies.

Property

The Property industry group PBT o Rs.142 million in

the irst quarter o 2013/14 was an increase o 120

per cent compared to the corresponding period in the

previous inancial year [2012/13 Q1: Rs.65 million],

mainly on account o the revenue recognition cycle o the

OnThree20 development. The super-structure o the 37

storeyed towers o OnThree20 was completed during the

quarter under review while the total number o apartments

sold is in excess o 80 per cent. Construction o the Groups

newest residential apartment development, 7th Sense on

Gregorys Road, commenced during the quarter with over

50 per cent o the units sold as o-date.

Consumer Foods and RetailThe Consumer Foods and Retail industry group PBT

o Rs.249 million in the irst quarter o 2013/14 was

a decrease o 36 per cent over the irst quarter o the

previous inancial year [2012/13 Q1: Rs.393 million].


4/24

PROGRESSIVE

2 l JOHN KEELLS HOLDINGS PLC l www.keells.com

CHAIRMANS MESSAGE

Whilst the sot drinks segment maintained its market share,

consumer demand was impacted by the adverse weather

conditions which prevailed in many parts o the country

and the lower discretionary expenditure. Although the icecream business lost volume due to the aoresaid reasons, it

increased its market share through enhanced distribution.

Keells Food Products consolidated its production by utilising

the increased capacity in the new plant in Pannala. The

Retail sector completed the roll out o its way orward

strategy in its remaining retail outlets. Most o the outlets

have witnessed growth during the quarter under review.

Financial Services

The Financial Services industry group PBT o Rs.259 million

in the irst quarter o 2013/14 was marginally higher

compared to the corresponding period last year [2012/13

Q1: Rs.257 million]. The prevailing macro-economic

conditions resulted in modest loan growth across the

banking industry. The perormance o the Bank in the irst

quarter was impacted by the planned non-recurring costs

associated with the development o its positioning strategy

which will be spread throughout this inancial year. The

proitability o the Insurance business was impacted by

higher claim ratios in the non-lie business compared to

the previous year. The Stock Broking business increased

its market share, although overall trading activity at the

Colombo Stock Exchange was relatively low.

Inormation Technology

The Inormation Technology industry group PBT o Rs.65

million in the irst quarter o 2013/14 was an increase

over the corresponding period in the previous inancial

year [2012/13 Q1: Rs.6 million]. The improvement in

perormance was driven primarily by the Business Process

Outsourcing (BPO) business on account o the expansion o

its client base. The Oice Automation business witnessed

growth as it continued to expand its range o products.

Other, including Plantation Services

Other, comprising o Plantation Services and the Corporate

Centre, recorded a PBT o Rs.275 million in the irst quarter

o 2013/14 [2012/13 Q1: Rs.72 million]. The perormance

was primarily attributed to an increase in net interest

income and a decrease in exchange losses compared to the

previous year.

Sustainability Initiatives

During the quarter, the Group took urther steps in

integrating sustainability within its business goals bybroadening the scope o impact assessment in the areas

o indirect energy consumption and other greenhouse gas

emissions.

The Group continues to track key indicators covering carbon

ootprint, water usage, waste management, employee

health & saety and sta training. The Groups overall

carbon ootprint at an estimated 18,657 MT is an increaseo 8 per cent [2012/13 Q1: 17,234 MT], while the Groups

water consumption at an estimated 414,934 cubic meters

is an increase o 4 per cent [2012/13 Q1: 399,197 cubic

meters] over the corresponding period last year, largely as

a result o the expanded reporting scope. The number o

occupational injuries in the Group during the irst quarter

increased to 63 [2012/13 Q1: 45]. The number o hours o

training provided to sta was at approximately 12 hours per

employee [2012/13 Q1: 9 hours].

Corporate Social ResponsibilityOut o 1,012 John Keells scholars o 2012/13, who

became eligible to sit or the inal examination under the

John Keells English Language Scholarship Programme, a

total o 996 children passed the inal examination.

The John Keells Foundation successully coordinated a

comprehensive industrial tour o the John Keells Group or

a group o 94 undergraduates (and 04 aculty members)

o the Faculty o Management Studies and Commerce

o the University o Jana in June 2013. The tour was

aimed at creating greater awareness o potential career

opportunities.

Under the John Keells HIV and AIDS Awareness Campaign,

a total o 1,005 persons were educated via 14 sessions

during the quarter, including corporate sta and members

o the Sri Lanka Army.

Under the John Keells Vision Project one eye camp was

held in the irst Quarter at the Navy Camp in Delt Island.

Out o a total o 500 patients registered, 70 cataract

patients were identiied o whom 56 were operated. A total

o 278 spectacles were also donated.

Under the Village Adoption Programme, initial activities

beneiting dierent community segments are underway in

certain villages o the Mullaitivu District and Trincomalee

District in the Northern and Eastern provinces o the

country.

Susantha Ratnayake

Chairman

26 July 2013


5/24



CONSOLIDATED INCOME STATEMENT

For the three months ended 30th June Note 2013 2012 Change %

Continuing operations

Sale o goods 11,321,732 11,673,741 (3)

Rendering o services 8,690,308 8,339,141 4

Revenue 20,012,040 20,012,882 -

Cost o sales (14,955,754) (14,887,228) -

Gross proft 5,056,286 5,125,654 (1)

Other operating income 340,222 408,508 (17)

Distribution expenses (837,758) (735,308) 14

Administrative expenses (2,354,227) (2,467,344) (5)

Other operating expenses (733,646) (611,430) 20

Results rom operating activities 1,470,877 1,720,080 (14)

Finance cost (369,311) (465,485) (21)

Finance income 1,322,957 930,900 42

Net fnance income 953,646 465,415 105

Change in insurance contract liabilities 6 (926,371) (581,827) 59

Share o results o equity accounted investees 701,570 792,917 (12)

Proft beore tax 2,199,722 2,396,585 (8)

Tax expense 7 (454,473) (540,025) (16)

Proft or the period 1,745,249 1,856,560 (6)

Attributable to :

Equity holders o the parent 1,586,397 1,658,718 (4)

Non-controlling interest 158,852 197,842 (20)

1,745,249 1,856,560 (6)

Earnings per share Rs. Rs.

Basic 1.85 1.95

Diluted 1.84 1.94

Dividend per share 1.50 1.50

Note : All values are in Rupees 000s, unless otherwise stated.

Figures in brackets indicate deductions.

The above fgures are not audited.


6/24

PROGRESSIVE


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the three months ended 30th June Note 2013 2012

Proft or the period 1,745,249 1,856,560

Other comprehensive income

Currency translation o oreign operations 255,915 280,110

Revaluation o land and buildings (1,865) -

Share o other comprehensive income o equity-accounted investees 194,633 316,106

Net (loss) / gain on available-or-sale fnancial assets 38,457 (371,558)

Tax on other comprehensive income 7 - -

Other comprehensive income or the period, net o tax 487,140 224,658

Total comprehensive income or the period, net o tax 2,232,389 2,081,218

Attributable to :

Equity holders o the parent 2,029,704 1,827,700

Non-controlling interest 202,685 253,518

2,232,389 2,081,218





7/24



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30.06.2013 31.03.2013

ASSETSNon-current assets

Property, plant and equipment 49,190,178 49,272,979Lease rentals paid in advance 9,585,723 9,513,671Investment property 9,316,821 9,294,936Intangible assets 2,649,908 2,689,514Investments in associates 16,531,774 15,724,361Other non current fnancial assets 17,546,051 18,816,693Deerred tax assets 241,207 212,227Other non current assets 4,252,195 3,575,749

109,313,857 109,100,130

Current assetsInventories 4,083,492 3,998,900Trade and other receivables 11,851,030 12,775,046Amounts due rom related parties 75,443 207,455Other current assets 3,502,770 2,895,900Short term investments 30,256,682 26,586,054

Cash in hand and at bank 4,046,762 3,554,80453,816,179 50,018,159

Total assets 163,130,036 159,118,289

EQUITY AND LIABILITIESEquity attributable to equity holders o the parentStated capital 26,555,676 26,480,396Capital reserves - -Revenue reserves 43,052,129 42,704,203Other components o equity 21,077,878 20,634,571

90,685,683 89,819,170Non-controlling interest 11,073,976 11,366,240Total equity 101,759,659 101,185,410

Non-current liabilitiesInsurance contract liabilities 18,265,774 17,388,494Borrowings 12,347,253 11,857,764Deerred tax liabilities 1,242,864 1,222,210Employee beneft liabilities 1,422,831 1,385,072Other deerred liabilities 61,044 50,228Other non-current liabilities 533,066 530,075

33,872,832 32,433,843

Current liabilitiesTrade and other payables 13,767,823 14,608,263Amounts due to related part ies 8,521 15,280Income tax payable 1,096,296 981,013Short term borrowings 2,518,313 1,853,767Current portion o borrowings 2,928,429 3,048,936Other current liabilities 1,897,720 1,635,534Bank overdrats 5,280,443 3,356,243

27,497,545 25,499,036Total equity and l iabilities 163,130,036 159,118,289

Rs. Rs.Net assets per share 105.73 104.78

Note : All values are in Rupees 000s, unless otherwise stated.The above fgures are not audited.

I certiy that the fnancial statements comply with the requirements o the Companies Act No.7 o 2007.

M J S RajakariarGroup Financial Controller

The Board o Directors is responsible or the preparation and presentation o these fnancial statements.

S C Ratnayake J R F PeirisChairman Group Finance Director

26 July 2013


8/24

PROGRESSIVE


CONSOLIDATED STATEMENT OF CASH FLOW


CASH FLOWS FROM OPERATING ACTIVITIES

Proft beore working capital changes A 1,558,928 2,315,541

(Increase) / Decrease in inventories (84,592) 1,347,793(Increase) / Decrease in trade and other receivables 1,132,386 438,737(Increase) / Decrease in other current assets 313,282 229,688(Increase) / Decrease in other non-current assets (676,446) (662,910)Increase / (Decrease) in trade and other payables (844,208) (471,994)Increase / (Decrease) in other current liabilities 255,802 14,136Increase / (Decrease) in insurance contract liabilities 877,280 598,136Cash generated rom operations 2,532,432 3,809,127

Finance income received 1,241,994 924,957Finance costs paid (361,788) (232,643)

Dividend received - 131,189Tax paid (1,184,895) (299,624)Gratuity paid (33,540) (14,681)Net cash ow rom operating activities 2,194,203 4,318,325

CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES

Purchase and construction o property, plant and equipment (492,891) (1,057,500)Purchase o intangible assets (19,672) (3,238)Addition to investment property (21,885) (98,872)Acquisi tion o associates - (28,390)Proceeds rom sale o property, plant and equipment and intangible assets 6,351 12,841Proceeds rom sale o fnancial instruments - air valued through proft or loss 180,760 52,590Purchase o fnancial instruments - air valued through proft or loss (160,249) (84,461)

(Purchase) / disposal o short term investments (net) (85,668) (1,209,570)(Purchase) / disposal o other non current fnancial assets (net) 1,309,099 693,367Net cash ow rom / (used in) investing activities 715,845 (1,723,233)CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIESProceeds rom issue o shares 75,280 721,579Direct cost on issue o shares (707) -Acquisi tion o non-control ling interest - (516)Dividend paid to equity holders o parent (1,286,460) (1,275,977)Dividend paid to shareholders with non-controlling interest (446,253) (624,516)Proceeds rom long term borrowings 1,447,174 193,898Repayment o long term borrowings (1,271,362) (875,654)Proceeds rom/(repayment o) other fnancial liabilities (net) 664,546 (929,057)

Net cash ow rom / (used in) fnancing activities (817,782) (2,790,243)NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 2,092,266 (195,151)CASH AND CASH EQUIVALENTS AT THE BEGINNING 16,860,241 21,518,594

CASH AND CASH EQUIVALENTS AT THE END 18,952,507 21,323,443

ANALYSIS OF CASH AND CASH EQUIVALENTSFavorable balancesShort term investments 20,186,188 20,932,609Cash in hand and at bank 4,046,762 3,095,993Unavorable balances

Bank overdrats (5,280,443) (2,705,159)Total cash and cash equivalents 18,952,507 21,323,443

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


9/24



For the three months ended 30th June 2013 2012

A Proft beore working capi tal changes

Proft beore tax 2,199,722 2,396,585

Adjustments or :Finance income (1,322,957) (930,900)Finance cost 369,311 465,485Share o results o equity accounted investees (701,570) (792,917)Proft on sale o non-current investments 11,461 -Depreciation o property, plant and equipment 611,222 523,092Provision or impairment losses - 99,769(Proft) / loss on sale o property, plant and equipment and intangible assets 11,600 (11,233)Amortisation o lease rentals paid in advance 165,835 170,826Amortisation o intangib le assets 61,946 62,293Amortisation o o ther deerred liabil ities (129) (128)

Gratuity provision and related costs 72,032 56,609Unrealised (gain) / loss on oreign exchange (net) 80,455 276,060

1,558,928 2,315,541



10/24

PROGRESSIVE


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributabletoequityholdersofparent

Stated

Revaluation

Foreigncurrency

Other

Availablefor

Revenu

e

TotalNon-controlling

Total

capital

reserve

translation

capital

salereserve

reserve

s

interest

Equity

reserve

r

eserves

As

at1

April201

3

26,4

80,3

96

17,7

80,4

32

2,7

29,8

57

-

124,2

82

42,7

04,2

0

3

89,8

19,1

70

11,3

66,2

40

101,1

85,4

10

Profitfortheperiod

-

-

-

-

-

1,5

86,3

9

7

1,5

86,3

97

158,8

52

1,7

45,2

49

Othercomprehen

siveincome

-

(1,8

65)

406,4

09

-

38,7

63

-

443,3

07

43,8

33

487,1

40

Totalcomprehensiveincome

-

(1,8

65)

406,4

09

-

38,7

63

1,5

86,3

9

7

2,0

29,7

04

202,6

85

2,2

32,3

89

Exerciseofshare

options

75,2

80

-

-

-

-

-

75,2

80

-

75,2

80

Directcostoniss

ueofshares

-

-

-

-

-

(70

7)

(707)

-

(707)

Finaldividendpa

id-2012/13

-

-

-

-

-

(1,2

86,4

6

0)

(1,2

86,4

60)

-

(1

,286,4

60)

Subsidiarydividen

dtonon-controllinginterest

-

-

-

-

-

48,6

9

6

48,6

96

(494,9

49)

(446,2

53)

As

at30

June

2013

26,5

55,6

76

17,7

78,5

67

3,1

36,2

66

-

163,0

45

43,0

52,1

2

9

90,6

85,6

83

11,0

73,9

76

101,7

59,6

59

As

at1

April201

2

25,1

10,5

28

9,4

87,7

94

2,9

87,4

76

428,3

65

322,9

87

33,0

92,5

5

0

71,4

29,7

00

8,8

84,2

52

80,3

13,9

52

Profitfortheperiod

-

-

-

-

-

1,6

58,7

1

8

1,6

58,7

18

197,8

42

1,8

56,5

60

Othercomprehen

siveincome

-

-

537,7

88

-

(368,8

06)

-

168,9

82

55,6

76

224,6

58

Totalcomprehensiveincome

-

-

537,7

88

-

(368,8

06)

1,6

58,7

1

8

1,8

27,7

00

253,5

18

2,0

81,2

18

Exerciseofshare

options

721,5

79

-

-

-

-

-

721,5

79

-

721,5

79

Finaldividendpa

id-2011/12

-

-

-

-

-

(1,2

75,9

7

7)

(1,2

75,9

77)

-

(1

,275,9

77)

Subsidiarydividen

dtonon-controllinginterest

-

-

-

-

-

48,1

5

1

48,1

51

(672,6

67)

(624,5

16)

Acquisition,

disposalandchangesin

non-controllin

ginterest

-

-

-

-

-

83

9

839

(1,3

55)

(516)

As

at30

June

2012

25,8

32,1

07

9,4

87,7

94

3,5

25,2

64

428,3

65

(45,8

19)

33,5

24,2

8

1

72,7

51,9

92

8,4

63,7

48

81

,215,7

40

Note:

Allvalue

sareinRupees000s,

unlessotherwise

stated.

Figuresinbracketsindicatedeductions.

Theabovefiguresarenotaudited.


11/24



COMPANY INCOME STATEMENT

For the three months ended 30th June Note 2013 2012 Change %

Continuing operations

Rendering o services 181,687 134,905 35

Revenue 181,687 134,905 35

Cost o sales (99,008) (85,378) 16

Gross proft 82,679 49,527 67

Dividend income 2,191,598 2,360,046 (7)

Other operating income 2,350 4,928 (52)

Administrative expenses (295,253) (292,176) 1

Other operating expenses (9,574) (9,092) 5

Results rom operating activities 1,971,800 2,113,233 (7)

Finance cost (90,959) (151,937) (40)

Finance income 384,722 281,732 37

Net fnance income 293,763 129,795 126

Proft beore tax 2,265,563 2,243,028 1

Tax expense 7 (32,532) (4,752) 585

Proft or the period 2,233,031 2,238,276 -

Rs. Rs.

Dividend per share 1.50 1.50





12/24

PROGRESSIVE


COMPANY STATEMENT OF COMPREHENSIVE INCOME


Proft or the period 2,233,031 2,238,276

Other comprehensive income

Net (loss)/gain on available-or-sale fnancial assets 43,481 (314,681)

Tax on other comprehensive income 7 - -

Other comprehensive income or the period, net o tax 43,481 (314,681)

Total comprehensive income or the period, net o tax 2,276,512 1,923,595



13/24



COMPANY STATEMENT OF FINANCIAL POSITION

As at 30.06.2013 31.03.2013

ASSETS

Non-current assetsProperty, plant and equipment 70,038 75,309

Intangible assets 82,143 74,004

Investments in subsidiaries and joint ventures 26,522,694 26,641,307

Investments in associates 9,821,364 9,821,364

Other non current fnancial assets 1,774,566 1,710,653

Other non current assets 10,310 10,310

38,281,115 38,332,947

Current assets

Trade and other receivables 1,057,226 994,862

Amounts due rom related parties 557,072 518,084

Other current assets 388,063 384,966

Short term investments 13,624,488 12,551,540Cash in hand and at bank 586,128 63,159

16,212,977 14,512,611

Total assets 54,494,092 52,845,558

EQUITY AND LIABILITIES

Stated capital 26,555,676 26,480,396

Revenue reserves 21,168,327 20,221,756

Other components o equity 126,938 83,457

Total equity 47,850,941 46,785,609

Non-current liabilities

Borrowings 3,212,279 3,752,621Employee beneft liabilities 137,753 134,075

3,350,032 3,886,696

Current liabilities

Trade and other payables 241,213 229,990

Amounts due to related part ies 12,679 13,156

Current portion o borrowings 1,308,636 1,314,424

Other current liabilities 8,102 105,478

Bank overdrats 1,722,489 510,205

3,293,119 2,173,253

Total equity and l iabilities 54,494,092 52,845,558

Rs. Rs.

Net assets per share 55.79 54.58



I certiy that the fnancial statements comply with the requirements o the Companies Act No.7 o 2007.

M J S Rajakariar

Group Financial Controller

The Board o Directors is responsible or the preparation and presentation o these fnancial statements.

S C Ratnayake J R F Peiris

Chairman Group Finance Director

26 July 2013


14/24

PROGRESSIVE


COMPANY STATEMENT OF CASH FLOW

For the three months ended 30th June 2013 2012

CASH FLOWS FROM OPERATING ACTIVITIES

Proft beore tax 2,265,563 2,243,028Finance income (384,722) (281,732)Dividend income (2,191,598) (2,360,046)Finance cost 90,959 151,937Depreciation o property, plant and equipment 6,041 6,520Proft on sale o property, plant and equipment (4) (2,696)Amortisation o intangible assets 5,961 4,376Provision or impairment losses 118,613 99,769Gratuity provision and related costs 6,198 5,686

Proft beore working capital changes (82,989) (133,158)

(Increase) / Decrease in trade and other receivables (36,885) 559,119(Increase) / Decrease in other current assets (2,165) (85,377)

Increase / (Decrease) in trade and other payables 10,747 (43,993)Increase / (Decrease) in other current liabilities (97,376) (2,127)Cash generated rom operations (208,668) 294,464Finance income received 384,722 255,981Finance expenses paid (87,552) (64,430)Dividend received 2,218,061 2,369,445Tax paid (33,461) (12,946)Gratuity paid (2,519) (2,518)Net cash ow rom operating activities 2,270,583 2,839,996

CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIESPurchase and construction o property, plant and equipment (769) (804)

Purchase o intangible assets (14,099) -Increase in interest in subsidiaries - (15,526)Increase in interest in associates - (28,389)Proceeds rom sale o property, plant and equipment 4 6,696(Purchase)/disposal o short term investments (net) 4,469,699 (1,510,948)(Purchase)/disposal o other non current fnancial assets (net) (20,431) 3,946Net cash ow rom/(used in) investing activities 4,434,404 (1,545,025)

CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIESProceeds rom issue o shares 75,280 721,579Dividend paid (1,286,460) (1,275,977)Repayment o long term borrowings (640,475) (664,176)Net cash ow rom / (used in) fnancing activities (1,851,655) (1,218,574)

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS 4,853,332 76,397

CASH AND CASH EQUIVALENTS AT THE BEGINNING 5,433,342 8,919,099

CASH AND CASH EQUIVALENTS AT THE END 10,286,674 8,995,496

ANALYSIS OF CASH & CASH EQUIVALENTSFavorable balancesShort term investments 11,423,035 8,983,135Cash in hand and at bank 586,128 61,594

12,009,163 9,044,729Unavorable balances

Bank overdrats (1,722,489) (49,233)Total cash and cash equivalents 10,286,674 8,995,496



15/24



COMPANY STATEMENT OF CHANGES IN EQUITY

Stated Available or Revenue Total

capital sale reserve reserves Equity

As at 1 April 2013 26,480,396 83,457 20,221,756 46,785,609

Proft or the period - - 2,233,031 2,233,031

Other comprehensive income - 43,481 - 43,481

Total comprehensive income - 43,481 2,233,031 2,276,512

Exercise o share option 75,280 - - 75,280

Final dividend paid - 2012/13 - - (1,286,460) (1,286,460)

As at 30 June 2013 26,555,676 126,938 21,168,327 47,850,941

As at 1 April 2012 25,110,528 229,595 15,754,217 41,094,340

Proft or the period - - 2,238,276 2,238,276

Other comprehensive income - (314,681) - (314,681)

Total comprehensive income - (314,681) 2,238,276 1,923,595

Exercise o share option 721,579 - - 721,579Final dividend paid - 2010/11 - - (1,275,977) (1,275,977)

As at 30 June 2012 25,832,107 (85,086) 16,716,516 42,463,537





16/24

PROGRESSIVE


OPERATING SEGMENT INFORMATION

BUSINESS SEGMENTS

The ollowing tables present revenue, proft inormation and segment assets regarding the Groups operating segments.

Transportation Leisure Property Consumer Foods & RetailFor the three months

ended 30th June 2013 2012 2013 2012 2013 2012 2013 2012

External revenue 4,128,503 5,307,450 4,116,630 3,912,911 672,752 611,541 6,154,518 5,986,843

Inter segment revenue 102,988 92,194 35,438 11,649 79,234 68,528 91,660 14,997

Total Segment revenue 4,231,491 5,399,644 4,152,068 3,924,560 751,986 680,069 6,246,178 6,001,840

Eliminations o inter

segment revenue

Net Revenue

Segment result 229,709 337,965 473,645 683,531 127,376 30,809 251,964 408,164

Finance cost (12,960) (23,906) (153,437) (103,570) (17,176) (2,674) (42,734) (20,445)

Finance income 41,204 52,417 141,889 68,101 35,780 38,978 43,104 7,815

Share o results o equity

accounted investees 490,324 590,949 - - - - - -

Eliminations / adjustments (604) (588) (1,100) - (3,518) (2,427) (3,000) (3,000)

Proft / (loss) beore tax 747,673 956,837 460,997 648,062 142,462 64,686 249,334 392,534

Tax expense (44,022) (71,189) (66,847) (45,006) (17,150) (22,617) (64,679) (128,172)

Proft / (loss) or the period 703,651 885,648 394,150 603,056 125,312 42,069 184,655 264,362

Segment assets 6,586,187 8,137,942 48,234,607 50,021,694 14,317,293 11,136,074 16,466,328 12,768,537

Investments in associates

Deerred tax assets

Goodwill

Other current assets

Eliminations / adjustments

Total Assets

Purchase and

construction o PPE 6,580 6,593 249,364 703,708 13,410 1,558 126,224 256,505

Addition to IA - - - - - - 2,268 623

Depreciation o PPE 19,407 23,404 320,733 252,499 5,833 2,535 168,071 146,391

Amortisation /impairment o IA 1,207 2,950 - - - - 3,974 3,046

Amortisation o LRPA - - 162,623 170,641 - - - -

Gratuity provision and

related costs 4,061 5,210 21,821 16,901 300 300 24,171 22,547




PPE (Property, plant and equipment), IA (Intangible assets), LRPA (Lease rentals paid in advance)


17/24



Financial Services Inormation Technology Others Group Total

2013 2012 2013 2012 2013 2012 2013 2012

2,229,523 1,997,392 1,879,275 1,431,946 830,839 764,799 20,012,040 20,012,882

26,998 24,449 75,117 72,736 141,510 144,713 552,945 429,266

2,256,521 2,021,841 1,954,392 1,504,682 972,349 909,512 20,564,985 20,442,148

(552,945) (429,266)

20,012,040 20,012,882

31,579 174,409 8,514 29,581 (108,237) (24,167) 1,014,550 1,640,292

(1) (145,338) (20,247) (15,492) (122,756) (154,060) (369,311) (465,485)

27,435 12,819 3,496 1,537 389,197 269,000 682,105 450,667

200,480 215,338 - (9,979) 10,766 (3,391) 701,570 792,917

- - 72,820 - 106,210 (15,791) 170,808 (21,806)

259,493 257,228 64,583 5,647 275,180 71,591 2,199,722 2,396,585

(65,933) (85,027) (11,585) (5,385) (184,257) (182,629) (454,473) (540,025)

193,560 172,201 52,998 262 90,923 (111,038) 1,745,249 1,856,560

28,465,997 23,378,562 3,641,604 3,283,744 24,200,021 19,860,912 141,912,037 128,587,465

16,531,774 16,640,319

241,207 163,894

950,884 717,900

3,502,770 1,708,244

(8,636) (15,201,104)

163,130,036 132,616,718

44,406 55,776 25,452 14,775 27,455 18,585 492,891 1,057,500

- - 3,305 2,615 14,099 - 19,672 3,238

37,841 36,019 29,202 32,635 30,135 29,609 611,222 523,092

47,066 46,854 3,738 5,067 5,961 4,376 61,946 62,293

- - - - 3,212 185 165,835 170,826

8,132 7,806 3,571 3,230 9,976 9,774 72,032 65,768


18/24

PROGRESSIVE


NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

1 CORPORATE INFORMATION

John Keells Holdings PLC. is a public limited company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock

Exchange. Ordinary shares o the Company are listed on the Colombo Stock Exchange and Global Depository Receipts (GDRs) are

listed on the Luxembourg Stock Exchange.

2 INTERIM CONDENSED FINANCIAL STATEMENTS

The fnancial statements or the period ended 30 June 2013, includes the Company reerring to John Keells Holdings PLC., as the

holding company and the Group reerring to the companies whose accounts have been consolidated therein.

3 APPROVAL OF FINANCIAL STATEMENTS

The interim condensed fnancial statements o the Group and the Company or the 3 months ended 30 June 2013 were authorised

or issue by the Board o Directors on 26 July 2013.

4 BASIS OF PREPARATION

The interim condensed fnancial statements have been prepared in compliance with Sri Lanka Accounting Standard LKAS 34 -

Interim Financial Reporting. These interim condensed fnancial statements should be read in conjunction with the annual fnancial

statements or the year ended 31 March 2013.

The presentation and classifcation o the fnancial statements o the previous year have been amended, where relevant, or better

presentation and to be comparable with those o the current year.

The interim condensed fnancial statements are presented in Sri Lankan Rupees and all values are rounded to the nearest thousand

except when otherwise indicated.

5 OPERATING SEGMENTS

For management purposes, the Group is organised into business units based on their products and services and has seven

reportable operating segments as ollows:

Transportation Leisure

Property Consumer Foods & Retail

Financial Services Inormation Technology

Others

6 CHANGE IN LIFE INSURANCE CONTRACT LIABILITIES

The results o Union Assurance PLCs lie business segment is consolidated line by line into the Groups consolidated income

statement. The change in lie insurance contract liabilities represents the transer to the Lie Fund, the dierence between all

income and expenditure attributable to lie policy holders during the period.

7 TAX EXPENSE

Group Company

For the three months ended 30th June 2013 2012 2013 2012

Income statement

Current income tax 463,204 547,584 32,532 4,752

Deerred tax (8,731) (7,559) - -

Other comprehensive Income

Deerred tax - - - -

454,473 540,025 32,532 4,752


19/24



8 RELATED PARTY TRANSACTIONS

Group Company

For the three months ended 30th June 2013 2012 2013 2012

Transactions with related parties

Subsidiaries

(Purchase) / sale o goods - - 996 (287)

(Receiving) / rendering o services - - 155,381 120,607

(Purchase) / sale o property plant & equipment - - - -

Loans given - - - 45,000

Interest received / (paid) - - - 15,791

Rent received / (paid) - - (29,012) (12,819)

Guarantees received / (paid) - - - -

Joint Ventures

(Receiving) / rendering o services 15,628 8,513 - -

Associates

(Purchase) / sale o goods 1,903 - - -

(Receiving) / rendering o services 10,527 6,924 900 -

Interest received / (paid) 43,897 111,477 19,386 71,489

Loans taken - - - -

Leases taken - - - -

Key management personnel (KMP)

(Receiving) / rendering o services - - - -

Close amily members o KMP

(Receiving) / rendering o services - - - -

Companies controlled / jointly controlled / signifcantly

Inuenced by KMP and their close amily members

(Purchase) / sale o goods - - - -

Post employment beneft plan

Contributions to the provident und 87,378 49,204 19,121 10,331


20/24

PROGRESSIVE


NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

9 SHARE INFORMATION

9.1 Public share holdings

The percentage o shares held by the public as at 30 June 2013 was 98.45 % (31 March 2013 - 88.36 %).

9.2 Directors share holdings

The number o shares held by the Board o Directors are as ollows:

As at 30-06-2013 31-3-2013

S C Ratnayake Chairman/CEO 5,299,066 5,299,066

A D Gunewardene Deputy Chairman 6,481,720 6,481,720

J R F Peiris 1,371,392 1,371,392

E F G Amerasinghe 5,514 5,514

T Das Nil Nil

S S Tiruchelvam 1,300 1,300

I Coomaraswamy Nil Nil

A R Gunasekara 107,866 107,866

M A Omar Nil Nil

9.3 Twenty largest shareholders o the Company are as ollows:

As at 30-06-2013 31-3-2013

Number o % Number o %

shares shares % shares

1 Mr S E Captain 84,774,813 9.9% 82,431,062 9.6%

2 Broga Hill Investments Limited 84,681,555 9.9% 74,591,759 8.7%

3 Janus Overseas Fund 75,942,233 8.9% 86,536,133 10.1%

4 Paints & General Industries Limited 50,007,835 5.8% 49,086,579 5.7%

5 Deutsche Bank AG London 33,628,953 3.9% 32,930,641 3.8%

6 Aberdeen Global-Asian Smaller Companies Fund 32,930,435 3.8% 26,563,207 3.1%

7 Melstacorp (Private) Limited 31,499,883 3.7% 31,499,883 3.7%

8 Aberdeen Global-Emerging Markets Smaller companies und 22,990,207 2.7% 30,850,435 3.6%

9 Estate o Mr A A N De Fonseka 19,952,358 2.3% 19,952,358 2.3%

10 Aberdeen Global Asia Pacifc Equity Fund 19,047,737 2.2% 19,047,737 2.2%

11 Janus Aspen series Overseas Portolio Fund 18,303,333 2.1% 18,303,333 2.1%

12 Schroder International Selection Fund 13,531,656 1.6% 13,172,166 1.5%

13 Mr K Balendra 13,141,807 1.5% 13,141,807 1.5%

14 J P Morgan Clearing Corporation 11,365,142 1.3% 11,518,889 1.3%

15 Rubber Investment Trust Limited A/C no.1 10,991,944 1.3% 11,535,763 1.3%

16 London- Edinburgh Dragon Trust PLC 10,936,664 1.3% 10,936,664 1.3%

17 BBH-Matthews International Funds 9,556,504 1.1% 9,556,504 1.1%

18 Aberdeen Asia Pacifc Fund 9,074,229 1.1% 9,074,229 1.1%

19 Mrs D Kumaranayagam 7,751,552 0.9% 7,751,552 0.9%

20 Aberdeen Institutional Commingled Funds, LLC 7,530,938 0.9% 7,325,938 0.9%


21/24



9.4 Stated capital

Stated capital is represented by number o shares in issue as given below:

As at 30-06-2013 31-03-2013

Ordinary shares 856,577,088 856,112,828

Global depository receipts 1,122,069 1,129,677

9.5 Net assets per share

Net assets per share have been calculated, or all periods, based on the number o shares in issue as at 30 June 2013.

9.6 Market price per share

For the quarter ended 30th June 2013 2012Rs. Rs.

Highest 299.80 249.70

Lowest 243.50 219.00

Last traded 251.50 247.00

10 DIVIDENDS PAID

A fnal dividend o Rs.1.50 per share or the fnancial year ended 31 March 2013 was paid on 17 June 2013.

11 DISPOSAL OF ASSOCIATE

In June 2013, as per sales and purchase agreement the Group disposed o its interest in one o its associates, namely NDO India

(Pvt) Ltd. The resultant loss o Rs.11mn has been reected in the Consolidated Income Statement.

12 CONTINGENCIES, CAPITAL AND OTHER COMMITMENTS

There has been no signifcant change in the nature o the contingencies and other commitments, which were disclosed in the

annual report or the year ended 31 March 2013.

13 EVENTS AFTER THE REPORTING PERIOD

John Keells holdings PLC. (JKH) has proposed to the Government o Sri Lanka a Project, valued in excess o USD 650mn, involving

the developing, owning, managing, operating, selling, leasing and renting a luxury multi/mixed use Integrated Resort (the Project)

in the land owned and occupied by its subsidiaries Ceylon Cold Stores PLC (CCS), John Keells PLC (JKL), John Keells Properties

(Pvt) Ltd (JKP) and Waterront Properties (Pvt) Ltd (WPL) in Colombo 2. John Keells Holdings PLC together with its subsidiaries CCS,

JKL and JKP will be majority shareholders in the Project Company, WPL. The Board o Directors has approved the Project subject

to the Company receiving all the necessary approvals to the satisaction o the Board including shareholder approval as necessary.

The Project Company has already entered into an agreement with the Board o Investment o Sri Lanka to acilitate the requisite

approvals and a Gazette published on the 18 July 2013 under the Strategic Development Projects Act has made available tax, duty

and other concessions to the Project. The Board has authorized the Company to call or an EGM to seek shareholder approval o the

Investment as a Major Transaction under the Companies Act o 2007.


22/24

PROGRESSIVE


NOTES


23/24

Corporate Information

Name o Company

John Keells Holdings PLC

Legal Form

Public Limited Liability Company

Incorporated in Sri Lanka in 1979

Ordinary Shares listed on the

Colombo Stock Exchange

GDRs listed on the Luxembourg

Stock Exchange

Company Registration No.

PQ 14

Directors

S C Ratnayake Chairman

A D Gunewardene Deputy Chairman

J R F Peiris

E F G Amerasinghe

I Coomaraswamy

T Das

A R Gunasekara

M A Omar

S S Tiruchelvam

Senior Independent Director

E F G Amerasinghe

Audit Committee

A R Gunasekara Chairman

E F G Amerasinghe

I Coomaraswamy

Human Resources and

Compensation Committee

E F G Amerasinghe Chairman

I Coomaraswamy

A R Gunasekara

S S Tiruchelvam

Nominations Committee

T Das Chairman

S S TiruchelvamS C Ratnayake

Bankers

Bank o Ceylon

Citibank N.A

Commercial Bank

Deutsche Bank A.G

DFCC Bank

DFCC Vardhana Bank

Hatton National Bank

Hongkong & Shanghai BankingCorporation

Muslim Commercial Bank

Nations Trust Bank

National Savings Bank

Pan Asia Banking Corporation

Peoples Bank

Sampath Bank

Seylan Bank

Standard Chartered Bank

Depository or GDRs

Citibank N.A

New York

Registered ofce o the Company

130 Glennie Street

Colombo 2, Sri Lanka

Internet: www.keells.com

Email: [email protected]

Secretaries and Registrars

Keells Consultants (Pvt) Limited

130 Glennie Street


Telephone: +94 11 230 6245

Facsimile: +94 11 243 9037

Investor Relations


130 Glennie StreetColombo 2, Sri Lanka

Telephone: +94 11 230 6165

+94 11 230 6000

Facsimile: +94 11 230 6160


Group Sustainability and

Enterprise Risk Management


130 Glennie Street

Colombo 2, Sri LankaTelephone: +94 11 230 6182

Facsimile: +94 11 230 6249


Contact or Media

Corporate Communications Division


130 Glennie Street


Telephone: +94 11 230 6191


Auditors

Ernst & Young

Chartered Accountants

P.O. Box 101

Colombo, Sri Lanka


24/24

jkh interim june 2013

Documents