#1JKH Investor Presentation Review of Q3 2023/24 John Keells Version 3.0 Group#2EBITDA: For the quarter ended 31 December EBITDA* (Rs. Million) John Keells Group Q3 2023/24 Q3 2022/23 Variance Variance (%) Transportation Consumer Foods 2,327 1,499 829 55 897 402 495 123 Retail 2,390 2,320 69 3 Leisure 2,560 1,898 662 35 Property 60 (312) 372 119 Financial Services 4,040 2,855 1,185 42 Other, incl. IT and Plantation Services 1,466 1,746 (280) (16) Group Deferred tax (credit)/losses at SAGT Group excl. deferred taxes at SAGT 13,740 10,408 (401) 764 13,339 11,172 3,332 32 (1,165) 2,167 19 *EBITDA includes interest income and the share of results of equity accounted investees which is based on the share of profit after tax but excludes all impacts from foreign currency exchange gains and losses (other than for equity accounted investees), to demonstrate the underlying cash operational performance of businesses. 2#3EBITDA: For the nine months ended 31 December John Keells Group EBITDA* (Rs. Million) Transportation Consumer Foods YTD 2023/24 YTD 2022/23 Variance 6,446 9,085 (2,639) Variance (%) (29) 2,853 2,645 209 8 Retail 6,360 6,603 (243) (4) Leisure 3,909 4,773 (864) (18) Property (188) (731) 543 74 Financial Services 7,435 4,836 2,599 54 Other, incl. IT and Plantation Services 4,214 5,826 (1,612) (28) Group 31,028 33,036 (2,007) (6) Deferred tax (credit)/losses at SAGT (401) 764 (1,165) Group excl. deferred taxes at SAGT 30,627 33,800 (3,172) (9) *EBITDA includes interest income and the share of results of equity accounted investees which is based on the share of profit after tax but excludes all impacts from foreign currency exchange gains and losses (other than for equity accounted investees), to demonstrate the underlying cash operational performance of businesses. 3#4Quarterly EBITDA movement EBITDA (Rs. Million) John Keells Group 2022/23 2023/24 Q3 Q4 Q1 Q2 Q3 Transportation Consumer Foods 1,499 1,546 2,419 1,700 2,327 402 651 720 1,237 897 Retail 2,320 2,230 1,987 1,983 2,390 Leisure 1,898 3,787 284 1,065 2,560 Property (312) 516 187 (435) 60 Financial Services 2,855 1,966 1,693 1,702 4,040 Other, incl. IT and Plantation Services 1,746 826 1,937 810 1,466 Group 10,408 11,523 9,227 8,061 13,740 LKR/USD exchange rate (period average in Rs.) 368 355 310 322 323 4#5Finance Cost: For the quarter ended 31 December Finance Cost (Rs. Million) John Keells Group Q3 2023/24 Q3 2022/23 Variance Variance (%) Transportation 156 197 (42) (21) Consumer Foods Retail 179 324 (146) (45) 731 1,225 (493) (40) Leisure 983* 845 138 16 Property Financial Services Other, incl. IT and Plantation Services Group Forex loss on Cinnamon Life loan translation 34 40 (6) (16) 0.1 0.1 3,133 2,671 462 17 5,215 5,303 (87) (2) (145) 145 Interest expense on HWIC Convertible Debentures** (1,032) (855) 176 21 Group excl. WPL forex loss and Debenture interest 4,038 4,448 (410) (9) *The functional reporting currency of Waterfront Properties (Private) Limited (WPL), the project company of the Cinnamon Life Integrated Resort, was changed from US Dollars to Sri Lankan Rupees in August 2023, given the impending transition of the project from construction to an operational business next year, which resulted in a non-cash exchange loss of Rs.145 million on the USD 225 million term loan facility at WPL. **Includes notional non-cash interest charged on the convertible debentures amounting to approximately Rs.820 million and Rs.700 million, in Q3 2023/24 and Q3 2022/23, respectively. 5#6Analysis of Finance Cost. Finance Cost (Rs. Million) John Keells Group Q3 2023/24 Q2 2023/24 Q1 2023/24 Transportation 156 178 190 Consumer Foods Retail 179 173 249 731 832 971 Leisure 983 2,928 843 Property Financial Services Other, incl. IT and Plantation Services Group 34 27 31 0.1 3,133 2,677 3,061 5,215 6,815 5,345 Forex loss on Cinnamon Life loan translation (145) (2,139) Interest expense on HWIC Convertible Debentures* (1,032) (991) (942) Group excl. WPL forex loss and Debenture interest 4,038 3,685 4,403 Average weekly AWPLR (% for the period) 13.2 16.4 20.9 *Includes notional non-cash interest charged on the convertible debentures amounting to approximately Rs.820 million, Rs.800 million and Rs.750 million in Q3, Q2 and Q1 2023/24, respectively. 6#7PBT: For the quarter ended 31 December John Keells Group PBT (Rs. Million) Q3 2023/24 Q3 2022/23 Variance Variance (%) Transportation 2,103 1,255 848 68 Consumer Foods Retail 407 (194) 601 310 904 442 461 104 Leisure (389) (524) 135 26 Property 22 (77) 99 128 Financial Services 4,045 2,828 1,217 43 Other, incl. IT and Plantation Services (1,606) (816) (790) (97) Group 5,485 2,914 2,571 88 Deferred tax (credit)/losses at SAGT (401) 764 (1,165) Group excl. deferred taxes at SAGT 5,084 3,678 1,406 38 7#8Key financial indicators John Keells Group (Rs. Million) Q3 2023/24 Q2 2023/24 Q1 2023/24 Group debt* excl. leases and incl. convertible debenture 238,797 240,189 227,759 Group debt excl. leases and convertible debenture 218,063 220,279 208,635 Cash and cash equivalents 93,775 98,771 96,760 Net debt excl. leases and convertible debenture 124,288 121,508 111,875 Net debt excl. leases and convertible debenture/Equity (%) EBITDA 34.6 34.0 32.4 13,740 8,061 9,227 *Group debt includes the convertible debentures issued to HWIC in August 2022. The debentures are eligible for conversion to ordinary shares of JKH commencing 12 February 2024. In the event the debentures are not converted during the conversion window, an obligation for Rs. 27.06 billion will materialise in August 2025. 8#9Overview of ESG initiatives - Q3 2023/24 ☐ The Group's carbon footprint per million rupees of revenue increased by 9% to 0.42 MT. ☐ The Group's water withdrawal per million rupees of revenue increased by 0.3% to 6.84 cubic meters. John Keells Group ◉ ☐ The increase in the above ratios is mainly due to higher levels of operational activity during the quarter compared to the corresponding quarter of the previous year, particularly in the Leisure, Supermarkets and Transportation businesses. In November 2023, in commemoration of International Men's Day 2023, under our DE&I brand - ONE JKH, an interactive session was organised, where two external subject experts spoke on the topics of mental well-being, gender equity, positive masculinity, and the importance of challenging harmful stereotypes. During the quarter, John Keells Foundation (JKF) conducted multiple initiatives to enhance the skills and opportunities, health and wellbeing of vulnerable communities, empower women and youth, and support programmes in conserving our environment and fostering social cohesion.#10Transportation: Port of Colombo Capacity Enhancements SOUTH HARBOUR DEVELOPMENT WCT-1 West Terminal East Terminal ECT CURRENT HARBOUR JCT CICT South Terminal SAGT TEU'S 000 Port of Colombo Volumes 900 846 808 796 780 770 800 700 600 585 500 480 459 431 440 482 446 400 428 416 408 300 Q3 Q4 Q1 Q2 2022/23 2023/24 SAGT SLPA CICT *SLPA includes volumes of JCT and ECT terminals Q3 63 10 John Keells Group#11WCT-1: Construction progress John Keells Group The groundwork on the West Container Terminal (WCT-1) at the Port of Colombo is progressing well, with all construction work relating to the first phase of the project (800 meters of quay length) being awarded, including the commissioning of the first batch of operating equipment. Phase 1 of the project is expected to be operational by 3Q 2024/25 and the remainder of the terminal to be completed 3Q 2025/26. The U.S. International Development Finance Corporation (DFC) announced, in November 2023, that it has committed to finance the development of the WCT-1 project through a long-term loan facility of USD 553 million. 11#12Transportation: Q3 2023/24 Port Business (South Asia Gateway Terminal) Volumes (TEUS) 2022/23 2023/24 Q3 SAGT Q4 416,381 408,261 445,515 Q1 Q2 482,255 Q3 427,922 Domestic: Transshipment 13:87 13:87 10:90 10:90 11:89 volume mix Bunkering Business (Lanka Marine Services) 2022/23 2023/24 LMS (%) Q3 Q4 Q1 Q2 Q3** YoY volume (8) (0) (19) (25) (9) growth **Excluding the fuel sales to local industries which was permitted by the Government in Q3 2022/23, the YoY volume decline for Q3 2023/24 is (1)%. Q3 Earnings Update: John Keells Group (Rs. mn) Q3 2023/24 Q3 2022/23 EBITDA* 2,327 1,499 *EBITDA excl. SAGT deferred taxes amount to Rs.1.93 billion in Q3 2023/24 and Rs.2.26 billion in Q3 2022/23. LMS recorded an increase in profitability driven by higher margins. It should be noted that Q3 2022/23 included fuel sales to local industries, as permitted by the Government. SAGT recorded an increase in throughput in line with the volumes of the overall Port of Colombo, although profitability was impacted by a change in the throughput mix. The profitability of the industry group was affected by the translation impact on its US Dollar denominated revenue streams, stemming from the appreciation of the Sri Lankan Rupee by ~13% in comparison to the comparative periods of last year. 12#13Consumer Foods: Q3 2023/24 Q3 Earnings Update: John Keells Group Key performance 2022/23 2023/24 indicators (%) (Rs. mn) Q3 Q4 Q1 Q2 Q3 Q3 2023/24 Q3 2022/23 Volume growth: EBITDA 897 402 Frozen Confectionery (19) (30) (10) (2) (2) Beverages (CSD) (19) (40) (3) 5 0 Convenience Foods (33) (48) (35) (18) (1) EBITDA (Rs. Million) 402 651 720 1,237 897 EBITDA margin 6 8 9 15 13 Revenue mix (CSD:FC) 38:62 38:62 44:56 41:59 40:60 Key performance indicators (%) Recurring EBITDA margin 18 20 20 17 10 FY2019 FY2020 FY2021 FY2022 FY2023 The significant increase in EBITDA is attributable to both the Beverages and the Frozen Confectionery (FC) businesses, driven by improved margins, as input costs have normalised from the previous peaks, and reductions in overhead costs. Both businesses witnessed encouraging volume growth in the seasonal month of December 2023, which was less affected by adverse weather conditions unlike in the months of October and November 2023. In November 2023, the Special Commodity Levy (SCL) imposed on imported sugar was increased from 25 cents to Rs.50 per kilogram. The Beverages business undertook price increases in select SKUs to mitigate the margin impact stemming from the higher SCL. 13#14Cost of Sales analysis of the Beverages business Cost of sales composition - Q3 2023/24 vs Q3 2022/23 66% Indexed price of raw materials Index: Q1 FY20 = 100 64% 4% 3% Raw materials and Energy costs packaging costs Q3 FY24 Q3 FY23 % of raw materials directly imported Q3 2023/24: 39% Q3 2022/23: 38% 360 300 240 32% 31% 180 120 60 0 Others John Keells Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY24 FY20 FY21 FY22 Beverages: white refined sugar (price per kg) FY23 CSD PET bottle (price per unit) 14#15Cost of Sales analysis of the Frozen Confectionery business Cost of sales composition - Q3 2023/24 vs Q3 2022/23 81% Indexed price of raw materials Index: Q1 FY20 = 100 John Keells Group 73% 6% 5% Raw materials and Energy costs packaging costs ■■Q3 FY24 Q3 FY23 % of raw materials directly imported Q3 2023/24: 61% Q3 2022/23: 33% 600 500 400 300 21% 200 14% 100 0 Others Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY20 FY21 FY22 -Skimmed milk powder (price per kg) FY23 Ice cream: white refined sugar (price per kg) Ice cream containers and lids (per unit) FY24 15#16Retail: Q3 2023/24 Supermarket business Q3 Earnings Update: John Keells Group Key performance 2022/23 2023/24 indicators (%) (Rs. mn) Q3 Q4 Q1 Q2 Q3 Q3 2023/24 Q3 2022/23 Same store sales EBITDA 2,390 2,320 40.6 30.1 22.8 10.4 10.7 growth Same store footfall 11.1 0.1 14.8 10.6 15.7 growth Average basket 26.5 30.0 7.0 (0.2) (4.3) value growth EBITDA 1,987 1,986 1,740 1,750 1,997 (Rs. Million) EBITDA margin 7.7 7.9 6.3 6.4 6.9 One outlet opened during the quarter, increasing the total outlet footprint as at 31 December 2023 to 133 outlets. The Supermarket business recorded a strong performance in revenue during the quarter, with same store sales recording an encouraging growth of 11%, driven by growth in customer footfall of 16%. The increase in revenue, supported the EBITDA performance, together with the benefits accruing from various productivity and cost efficiency initiatives and supplier negotiations. The growth in revenue and higher contribution to EBITDA was, however, offset to a large extent on account of the significant escalation in electricity costs in comparison to Q3 2022/23. The Office Automation business recorded an increase in mobile phone sales volumes. 16#17Retail: Q3 2023/24 vs Q3 2022/23 Same Store Sales 10.7% Same Store Footfall 15.7% ABV (4.3)% John Keells Group Q3 2022/23: ■ Increase in revenue on account of seasonal sales in December. ■ High inflation coupled with indirect taxes, caused an increase in prices of items. Q3 2023/24: Increase in revenue on account of seasonal sales in December along with promotional campaigns contributed to same store sales growth. Q3 2022/23: Customer Count increased driven by seasonal sales along with improved availability of items at Outlets. Continued demand towards Modern Trade in comparison to General Trade. Q3 2023/24: Q3 2022/23: December 2022 NCPI (YoY) - 59.2%. The imposition of taxes, resulted in an increase in the Retail Selling Price (RSP). A drop in Weight of Purchase (WOP) was offset by an increase in Customer Count, which resulted in a double-digit growth of the ABV. Q3 2023/24: ■ Customer Count increased driven by seasonal sales. ■ ■ Continued demand towards Modern Trade in comparison to General Trade. ◉ December 2023 NCPI (YoY) - 4.2 %. The YoY increase in inflation driven by Food inflation due to adverse weather conditions resulted in an increase in the RSP. The reduction in the consumption of non- essential items as a result of a decrease in the discretionary spend for non-essentials led to a decrease of the WOP. 17#18BYD ATTO BYD CBR 961 1129 10 8 み 000 BYO DOLPHIN D ABOYA ל www B John Keells Group In November 2023, the Company partnered with BYD Company Limited, the world's leading manufacturer of new energy vehicles (NEV), to provide cutting-edge and eco-friendly vehicles to the Sri Lankan market. This new business will operate under the Retail industry group considering its alignment with the business and potential synergies. 18#190 Dec-18 40 40 Jun-19 160 Arrivals ('000) 80 120 Dec-19 Jun-20 200 Dec-20 240 280 Tourist arrivals to Sri Lanka: recovery trend post-pandemic Source: Sri Lanka Tourism Development Authority Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Sri Lanka - Monthly Tourist Arrivals Month 2019 Jan 2020 244,239 228,434 2021 2022 1,682 82,327 2023 102,545 208,253 2024 Feb 252,033 207,507 3,366 96,507 107,639 204,484* Mar 244,328 71,370 4,581 106,500 125,495 Apr 166,975 4,168 62,980 105,498 May 37,802 1,497 30,207 83,309 Jun 63,072 1,614 32,856 100,388 Jul 115,701 2,429 47,293 143,039 Aug 143,587 I 5,040 37,760 136,405 Sep 108,575 - 13,547 29,802 111,938 Oct 118,743 22,771 42,026 109,199 Nov 176,984 - 44,294 59,759 151,496 Dec 241,663 393 89,506 91,961 210,352 Total 1,913,702 507,704 194,495 719,978 1,487,303 412,737 *As of 27 February 2024 19 John Keells Group#200 40 40 Arrivals ('000) 80 60 Source: Ministry of Tourism Maldives Jun-20 120 Dec-20 Jun-21 160 Dec-21 200 Jun-22 Tourist arrivals to the Maldives: recovery trend post-pandemic 240 The Maldives - Monthly Tourist Arrivals Dec-22 Jun-23 Dec-23 Month 2019 Jan 151,552 2020 173,347 2021 2022 2023 2024 92,103 131,764 172,499 192,385 Feb 168,583 149,785 96,882 149,008 177,915 206,220* Mar 162,843 59,630 109,585 150,739 173,514 Apr 163,114 13 91,200 145,279 164,357 May 103,022 41 64,613 Jun 113,475 1 Jul 132,144 1,752 56,166 101,818 125,522 120,959 110,889 120,363 Aug 139,338 Sep 117,619 Oct 141,928 Nov 137,921 Dec 171,292 133,561 145,620 7,636 143,599 131,862 154,854 9,605 114,896 111,986 130,967 21,515 142,066 153,737 159,141 35,757 144,725 146,886 163,658 96,412 164,284 184,051 194,969 Total 1,702,887 *As of 27 February 2024 555,494 1,321,937 1,675,303 1,878,543 398,605 20 John Keells Group#21Leisure: Q3 2023/24 Q3 Earnings Update: John Keells Group 2022/23 2023/24 Key indicators (Rs. mn) Q3 Q4 Q1 Q2 Q3 Q3 2023/24 Q3 2022/23 Colombo Hotels* EBITDA 2,560 1,898 Occupancy (%) 43 62 49 67 57 ARR (USD) 65 63 70 69 88 EBITDA Margin (%) 12 14 (3) 13 16 Sri Lankan Resorts Occupancy (%) 38 62 55 71 66 ARR (USD) 63 71 59 62 80 EBITDA Margin (%) (11) 33 (18) 4 15 Maldivian Resorts Occupancy (%) 91 89 82 82 88 ARR (USD)** 359 404 325 301 379 EBITDA Margin (%) 31 40 23 17 31 *Occupancies and ARRS exclude "Cinnamon Red Colombo". The performance of "Cinnamon Life Colombo", currently under construction, will be reported once the project commences operations. **ARRS net of Green tax. The Sri Lankan Leisure businesses continued to record an improvement in performance, with an increase in occupancies and room rates across properties, on the back of a sustained recovery in tourist arrivals to the country. The Colombo Hotels segment continued its strong performance in restaurant operations whilst recording an increase in the number of events and banquets. ■ The Maldivian Resorts recorded a marginal decline in performance on account of the translation impact stemming from the appreciation of the Sri Lankan Rupee by ~13% in comparison to Q3 2022/23, although the underlying operating performance recorded a marginal increase on account of an increase in ARR and a reduction in power and energy costs against the previous year. 21#22Cinnamon Life Integrated Resort Initial sketch by Sri Lankan-British Architect, Cecil Balmond 2 M John Keells Group The 3D rendering of "Cinnamon Life" "Cinnamon Life" under construction 22#23Cinnamon Life Integrated Resort John Keells Group 11 Gaming Further to the entering of the Memorandum of Understanding (MOU) with the selected international gaming operator, a significant amount of advanced design work, engineering and other construction and planning related aspects have been completed. The significant groundwork completed by both parties will enable, and pave the way, for a timely and rapid completion of the fit-out of the gaming space, once commenced. The parties are now working on the final stages of establishing the corporate and administrative framework which will enable commencement of fit-out at the earliest. As originally envisaged, WPL will lease out space at the Cinnamon Life Integrated Resort for the operation of the casino. 23#24Cinnamon Life Integrated Resort Entertainment Retail Carpark Residential 1 Hotel Office John Keells Group Residential 2 Conferencing capacity (~5,000 pax) in five venues and car park facility (2,330 slots) 800 guest room hotel, including conferencing, banqueting, 7 specialty restaurants (~1,300 pax) and entertainment facilities The hotel and conferencing space collectively entails: - 3 ballrooms, 7 meeting rooms, an exhibition hall and a conference hall 6 restaurants, 5 bars, 2 lounges and 3 pool bars and lounges 4 pools and wellness and fitness related spaces - Rentable mall ~149,000 Sq. Ft (Gross ~345,000 Sq. Ft) and entertainment space of ~160,000 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. of rentable area (24 floors) 24#25Growth potential - MICE market The number of outbound MICE travelers from India and China was at 2 million and 5 million (pre-pandemic). Colombo is well poised to take advantage of the growing outbound MICE travel from India. The ARR and Conference Package Rate is lower in Colombo than India. Travel time from India to Colombo is the lowest compared to regional competitors. Budget carriers to reduce cost of air travel. India also has a booming outbound destination wedding market. ◉ Thailand attracts ~300 Indian destination wedding each year. John Keells Group 25#26Property: Q3 2023/24 Cumulative sales update: Q3 Earnings Update: John Keells Group (As at 31 December 2023) Number of units sold Number of remaining units Cinnamon Life: (Rs. mn) Q3 2023/24 2022/23 Q3 EBITDA 60 (312) The Residence at Cinnamon Life The Suites at Cinnamon Life Total 147 84 109 87 The EBITDA includes profit recognition from 'TRI-ZEN' and rental income from ten floors of 'The Offices at Cinnamon Life' 256 171 TRI-ZEN 682 209 VIMAN *Number of total units in Phase 1 of the development is 114. 74 40* The construction activity at 'TRI-ZEN' is continuing with encouraging momentum where the finishing works in the apartments are underway. The overall project is scheduled for completion by the end of the fourth quarter of 2023/24. The construction of the first phase of 'VIMAN' is expected to commence in the next financial year. 26#27VIMAN John Keells Group In September 2023, John Keells Properties launched its latest residential project, 'VIMAN', located in the heart of Ja-Ela, a suburban area in close proximity to Colombo. Spread across six acres, offering a harmonious blend of modern comforts with 418 apartments, 'VIMAN' is designed to provide a secure, family-friendly environment with convenient access to the city of Colombo, while retaining the charm of a small-town setting. 27#28Financial Services: Q3 2023/24 Union Assurance PLC Q3 Earnings Update: John Keells Group Key performance indicators (%) Q3 Q4 Q1 2022/23 2022/23 2023/24 (Oct-Dec (Jan-Mar (Apr-Jun 2022) 2023) 2023) 2023) Q2 Q3 2023/24 2023/24 (Jul-Sep (Oct-Dec 2023) (Rs. mn) Q3 2023/24 Q3 2022/23 EBITDA 4,040 2,855 GWP growth 3 5 21 15 12 Net profit (Rs. Million) 1,970 445 469 435 2,410 Net profit growth 44 105 79 46 22 Nations Trust Bank PLC Q3 Key performance indicators (%) 2022) Q4 2022/23 2022/23 2023/24 (Oct-Dec (Jan-Mar (Apr-Jun 2023) Q1 Q2 2023/24 Q3 2023/24 (Jul-Sep (Oct-Dec 2023) 2023) 2023) Net profit growth 16 79 208 29 4 Loan growth (3) (11) (14) 1 9 Net Interest Margin 8.3 8.0 7.6 6.7 6.6 Stage 3 loan ratio (net) 2.6 3.4 3.4 3.3 2.3 The profitability of Union Assurance PLC (UA) was driven by the life insurance surplus which recorded an increase against the corresponding period of the previous year. UA recorded encouraging double-digit growth in gross written premiums, driven by renewal premiums, and higher yields on investments. NTB recorded a growth in profitability aided by loan growth, lower impairments and increased trading and fee income. 28#29THANK 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 Q3 2023/24 and does not constitute an issue prospectus or a financial analysis. This Investor Presentation should be read in conjunction with the JKH Annual Report 2022/23 and the Annual Investor Presentation 2022/23 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. 29 29