GOING FORW RD - JKHThe Group profit before tax (PBT) at Rs.2.60 billion in the second quarter of the...

INTERIM CONDENSED FINANCIAL STATEMENTS SIX MONTHS ENDED 30 SEPTEMBER 2019

G O I N GF O R W R D

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FINANCIAL STATEMENTS

CHAIRMAN’S REVIEW

Summarised below are the key operational and financial highlights of our performance during the quarter under review:

´ The Consumer Foods, Retail, Leisure and Property industry groups continued its growth momentum from the first quarter despite the disruptions post the Easter Sunday terror attacks which occurred in April 2019.

´ The Group’s year-on-year performance for the quarter was impacted by the downturn in the Group’s Sri Lankan leisure business which continued to be significantly impacted post the Easter Sunday terror attacks, lower finance income as a result of the deployment of cash in new investments and lower exchange gains recorded at the Holding Company on its foreign currency denominated cash holdings.

´ We are encouraged that the forward bookings for the Sri Lankan hotels have witnessed an upward trend and we expect occupancy in the peak season to be in line with the previous year, albeit at a moderately lower room rate.

´ During the quarter under review, we added our fourth resort property to our Maldivian hotel portfolio, Cinnamon Velifushi Maldives, in line with our asset light investment strategy where the hotel was handed over to Cinnamon on an operating lease.

´ The quarterly performance of the Group’s Ports and Shipping business, South Asia Gateway Terminals, was impacted by an operational disruption in August whilst the Group’s Bunkering business, Lanka Marine Services, recorded strong growth in profits driven by improved margins.

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

´ Consumer Foods witnessed growth on account of an improved performance in the Beverages and Frozen Confectionery businesses, driven by growth in volumes and improved profitability on account of higher margins. It should be noted that the volume growth momentum prior to the month of September displayed encouraging double-digit growth, although adverse weather impacted volumes in September.

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

´ The installation of external facades, mechanical and electrical services and interior works are nearing completion for the Cinnamon Life Residential and Office Towers, for handover from April 2020 onwards. The full completion of the project is on track for March 2021.

Dear Stakeholder,

The Group revenue at Rs.33.70 billion for the period under review is an increase of 3 per cent over the Rs.32.63 billion recorded in the previous financial year. The cumulative revenue for the first half of the financial year 2019/20 at Rs.65.44 billion is an increase of 4 per cent over the revenue of Rs. 62.80 billion recorded in the corresponding period of the previous financial year.

As discussed in detail in my previous quarter’s Message, effective 1 April 2019, the Group adopted SLFRS 16 – the accounting standard on Leases - which primarily impacts the accounting treatment of the Group’s operating leases and lease commitments, particularly in the Supermarkets business and the Maldivian Resorts segment. Similar to the previous quarter, to depict the underlying performance of the Group, the ensuing discussion is based on an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), where the lease expense in EBITDA in 2018/19 is comparatively adjusted on a like-with-like basis against the EBITDA in 2019/20 (adjusted EBITDA). Group EBITDA at Rs.4.80 billion in the second quarter of the financial year 2019/20 is a decrease of 25 per cent over the adjusted EBITDA of Rs.6.41 billion recorded in the previous financial year. The cumulative EBITDA for the first half of the financial year 2019/20 at Rs.8.50 billion is a decrease of 21 per cent over the adjusted EBITDA of Rs.10.82 billion recorded in the same period of the previous financial year.

The Group profit before tax (PBT) at Rs.2.60 billion in the second quarter of the financial year 2019/20 is a decrease of 45 per cent over the Rs.4.69 billion recorded in the previous financial year. The cumulative PBT for the first half of the financial year 2019/20 at Rs.3.96 billion is a decrease of 48 per cent over the PBT of Rs.7.60 billion recorded in the same period of the previous financial year.

2 JOHN KEELLS HOLDINGS PLC | INTERIM CONDENSED FINANCIAL STATEMENTS SIX MONTHS ENDED 30 SEPTEMBER 2019

CHAIRMAN’S REVIEW

The profit attributable to equity holders in the second half at Rs.2.29 billion is a decrease of 55 per cent over the corresponding period of the previous financial year, whilst the first six months performance at Rs.3.28 billion is a decrease of 55 per cent over the previous financial year. The profit attributable to equity holders in the second quarter to 2018/19 includes a recognition of a deferred tax asset at Union Assurance PLC. Profits for the quarter were mainly impacted by the Easter Sunday impacts on the Sri Lankan Leisure businesses and the decline in finance income and exchange gains at the Holding Company.

The Company PBT for the second quarter of 2019/20 at Rs.1.15 billion is a decrease of 56 per cent over the Rs.2.61 billion recorded in the corresponding period of 2018/19. The Company PBT for the first six months of the financial year 2019/20 at Rs.2.87 billion is a decrease of 43 per cent over the previous financial year.

TRANSPORTATION

The Transportation industry group EBITDA of Rs.1.12 billion in the second quarter of 2019/20 is a decrease of 3 per cent over the adjusted EBITDA for the second quarter of the previous financial year [2018/19 Q2: Rs.1.15 billion]. The Group’s Bunkering business, Lanka Marine Services (LMS), recorded a strong growth in profits driven by improved margins. Whilst the Group’s

EBITDA* for the quarter ended 30 September 2019

EBITDA* for the six months ended 30 September 2019

Industry group performance (Rs.'000)

Q2 FY19/20(Reported)

Q2 FY18/19(Adjusted for

SLFRS 16)

CumulativeFY19/20

(Reported)

CumulativeFY18/19

(Adjusted forSLFRS 16)

Transportation 1,118,759 1,153,627 2,173,782 2,085,529

Consumer Foods 735,636 692,563 1,578,480 1,217,041

Retail 1,017,747 430,501 2,104,736 1,064,529

Leisure 134,251 1,136,255 (197,562) 1,508,565

Property 48,008 (10,955) 36,355 37,198

Financial Services 562,902 563,924 998,632 1,161,395

* EBITDA includes interest income and the share of results of equity accounted investees which is based on the share of profit after tax

Ports and Shipping business, South Asia Gateway Terminals (SAGT), recorded an increase in domestic throughput for the quarter under review, profitability was impacted by a decline in overall volumes due to a disruption in operations in August 2019. The Logistics business recorded a strong performance due to an increase in throughput. The Group’s new multi-use International Logistics Centre, Logipark International (LPI), located on a 9-acre plot in Muthurajawela, completed its piling works in July 2019, with operations expected to commence by the first half of 2020/21.

CONSUMER FOODS

The Consumer Foods industry group EBITDA of Rs.736 million in the second quarter of 2019/20 is an increase of 6 per cent over the adjusted EBITDA for the second quarter of the previous financial year [2018/19 Q2: Rs.693 million]. The Beverage and the Frozen Confectionery businesses recorded encouraging double-digit growth in July and August. However, adverse weather conditions in many parts of the country in the month of September hampered distribution resulting in a muted volume growth for both categories for the quarter.

The profitability of the Beverages business recorded an increase driven by margin expansion in certain SKUs. Profitability in the Frozen Confectionery business was

driven by the impulse segment on the back of the new state-of-the-art ice cream facility which has enabled the business to produce a variety of impulse products at varying price points.

During the quarter under review, keeping in line with evolving consumer trends, lifestyles and the emphasis on nutrition and convenience, Keells Food Products (KFP) commenced production of a pioneering Instant Rice, branded “Ezy Rice”, an affordable, easy-to-prepare and ready-to-eat single serve product.

RETAIL

The Retail industry group EBITDA of Rs.1.02 billion in the second quarter of 2019/20 is an increase of 136 per cent over the adjusted EBITDA for the second quarter of the previous financial year [2018/19 Q2: Rs.431 million].

The Supermarkets business EBITDA of Rs.810 million in the second quarter of 2019/20 is an increase of 131 per cent over the adjusted EBITDA for the second quarter of the previous financial year [2018/19 Q2: Rs.351 million]. The business displayed strong growth in profitability driven by a notable contribution from new outlets and a robust 5.7 per cent growth in customer footfall which contributed towards a 5.1 per cent increase in same store sales. The EBITDA in the second quarter of 2018/19 included a one-off re-branding

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and re-fitting cost of outlets amounting to Rs.113 million. Two new outlets were opened during the quarter, increasing the total store count to 100 as at 30 September 2019.

The Office Automation business recorded an improvement in profitability on account of volume growth in the mobile phone category. The business was impacted by significant exchange losses during the second quarter of 2018/19.

LEISURE

The Leisure industry group EBITDA of Rs.134 million in the second quarter of 2019/20 is a decrease over the adjusted EBITDA for the second quarter of the previous financial year [2018/19 Q2: Rs.1.14 billion]. The decline is profitability is on account of the negative impacts to the Sri Lankan leisure business as a result of the Easter Sunday terror attacks in April 2019, the partial closure of Cinnamon Dhonveli Maldives for refurbishment and start-up costs related to Cinnamon Hakuraa Huraa Maldives and our new resort, Cinnamon Velifushi Maldives.

In the aftermath of the attacks, the significant dip witnessed in the tourist arrivals to the country has gradually witnessed an upward momentum, indicating signs of recovery. We are encouraged that the forward bookings for the Sri Lankan hotels have witnessed an upward trend and we expect occupancy in the peak season to be in line with the previous year, albeit at a moderately lower room rate.

Against this backdrop, both the City Hotels sector and the Sri Lankan Resorts segment recorded a decline in occupancy and average room rates. However, despite the challenging operating environment, the City Hotels sector maintained its fair share of available rooms in the 5-star category in the quarter under review. The newly reconstructed Cinnamon Bentota Beach will commence operations in December 2019, as planned.

During the quarter under review, we added our fourth resort property to our Maldivian hotel portfolio, Cinnamon Velifushi

Maldives. The hotel was handed over to Cinnamon on an operating lease, in line with our asset light investment strategy, and will commence operations in October. Cinnamon Velifushi Maldives, consisting of 90 rooms, is positioned as a 5-star deluxe resort. Initial bookings for the resort are above expectations.

With the completion of the partial refurbishment of Cinnamon Dhonveli Maldives in November 2019, and the completion of the reconstruction of Cinnamon Hakuraa Huraa Maldives in December 2019, we will have the full complement of all our four Maldivian hotels operational from the fourth quarter of this financial year, with a new and premium product offering. Following the refurbishment of Ellaidhoo Maldives by Cinnamon and the water suites at Cinnamon Dhonveli Maldives last year, the average room rates recorded for the quarter under review are above expectations.

PROPERTY

The Property industry group EBITDA of Rs.48 million in the second quarter of 2019/20 is an increase over the adjusted EBITDA for the second quarter of the previous financial year [2018/19 Q2: negative Rs.11 million]. As planned, the quarter under review marked the first tranche of revenue recognition for the “Tri-Zen” residential development project. The revenue recognition of the project will ramp up over the next few quarters as the project progresses. Whilst sales for the previous quarter were impacted by the Easter Sunday terror attacks in April, it is pleasing to note that the sales momentum is now improving, where interest has reverted to pre-incident levels with both the months of August and September recording encouraging sales. The pre-sales for the project is at 229 units as at 30 September 2019. However, profitability of the industry group was impacted to an extent by the Crescat mall operations as a result of the Easter Sunday terror attacks in April 2019 and the Rajawella golf course which is currently undergoing renovation.

The construction of Cinnamon Life is progressing well and is on track for

completion as per the target dates outlined in my previous Message. The installation of external facades, mechanical and electrical services and the interior works are nearing completion for the Residential and Office Towers, for handover from April 2020 onwards. The full completion of the project is on track for March 2021. The pre-sales of the Residential Towers; "The Suites of Cinnamon Life" and "The Residencies at Cinnamon Life" is currently at 65 per cent of total area available for sale. The sales momentum is expected to improve as completion draws near.

FINANCIAL SERVICES

The Financial Services industry group EBITDA of Rs.563 million in the second quarter of 2019/20 is a marginal decrease over the adjusted EBITDA for the second quarter of the previous financial year [2018/19 Q2: Rs.564 million]. The performance Union Assurance PLC recorded a marginal decline whilst the gross written premiums demonstrated growth. Nations Trust Bank PLC recorded an improvement in profitability as a result of focused efforts on collections and a lower impairment charge compared to the corresponding quarter of the previous year.

OTHER, INCLUDING INFORMATION TECHNOLOGY AND PLANTATION SERVICES

Other, including the Information Technology and Plantation Services industry group recorded a EBITDA of Rs.1.18 billion in the second quarter of 2019/20 which is a decrease of 52 per cent over the adjusted EBITDA for the second quarter of the previous financial year [2018/19 Q2: Rs.2.44 billion]. The decrease in PBT is mainly due to the on-going deployment of equity to the Cinnamon Life project which resulted in a year-on-year decrease in finance income. The year-on-year comparison is also impacted by lower exchange gains recorded in the second quarter of 2019/20 compared to the same period of the previous financial year. The performance of the Plantation Services sector was impacted by a decrease in tea prices during the quarter under review. The Information Technology sector recorded a strong growth in profitability on account of onboarding new clients.


SUSTAINABILITY INITIATIVES

During the quarter under review, the Group’s carbon footprint per million Rupees of revenue decreased by 6 per cent to 0.74 MT, and in absolute terms, by 2 per cent to 25,131 MT, driven by reduced activity at Cinnamon Air and the Leisure industry group as a result of the Easter Sunday impacts. Water withdrawal per million Rupees of revenue increased by 5 per cent to 14.81 cubic meters, and in absolute terms, by 9 per cent to 500,734 cubic meters due to higher water usage for replanting purposes at the Rajawella golf course.

The Group continues to monitor its progress towards its 2020 energy and water goals against the established 2015/16 baseline. Whilst water withdrawal recorded a 3 per cent reduction against the 2015/16 baseline figures, energy usage recorded a 12 per cent increase in the quarter under review, as relative energy efficiency was impacted by increased operations in the Retail industry group and a reduction in activity in the Leisure industry group. Group employees were provided with approximately 10 hours of training per employee, whilst 30 occupational injuries were reported this quarter.

CORPORATE SOCIAL RESPONSIBILITY

Following are some of the highlights of the John Keells Foundation’s (JKF) work during the quarter under review.

• John Keells Group renewed its 17-year public private partnership for refurbishing and maintaining the historic Slave Island railway station by entering into a renewal agreement with Sri Lanka Railways, consonant with the 11th Sustainable Development Goal - Sustainable Cities and Communities.

CHAIRMAN’S REVIEW

• Under the English Language Scholarship Programme, provincial-level English Days were held in August with the participation of over 500 students who showcased their language and performance skills in a competitive setting.

• The annual Career Guidance Programme in Colombo 2 was restructured for school leavers and conducted under JKF’s business centric model branded “John Keells Praja Shakthi” with the support of the respective Group businesses, state officials and community leaders, benefiting 35 youth in Kompannaveediya, Wekanda and Hunupitiya GN Divisions.

• Under the John Keells Vision Project, 203 cataract patients were identified at two eye camps held in Hikkaduwa and Galle while 144 surgeries were completed during the quarter under review. Over 8,200 school children from 28 schools underwent vision screening whilst 761 eye-glasses were donated under the Vision Screening Programme of school children of the Colombo District, conducted in collaboration with the Department of Health Services.

• Under Project WAVE (Working Against Violence through Education), the pilot training of trainer workshop on child protection was conducted for staff of the City Hotels and Resorts sectors, creating a pool of 34 volunteer trainers.

• JKF together with Cinnamon Hotels & Resorts, commemorated National Coastal and Marine Resource Conservation Week by organising beach clean-ups in Beruwela, Hikkaduwa and Yala, in collaboration with the Marine Environment Protection Authority with the participation of over 100 volunteers including hotel staff, guests and community members.

DIVIDEND

Your Board declared a first interim dividend of Rs.1.00 per share to be paid on 25 November 2019.

Krishan Balendra Chairman

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CONSOLIDATED INCOME STATEMENT

Quarter Ended 30 September Six Months Ended 30 September

Note 2019 2018 Change % 2019 2018 Change %

Continuing operations

Revenue from contracts with customers 30,919,268 30,083,847 3 60,223,304 57,766,185 4

Revenue from Insurance Contracts 2,784,579 2,548,214 9 5,218,559 5,028,981 4

Total revenue 33,703,847 32,632,061 3 65,441,863 62,795,166 4

Cost of sales (27,603,239) (26,343,084) 5 (54,115,168) (50,854,554) 6

Gross profit 6,100,608 6,288,977 (3) 11,326,695 11,940,612 (5)

Other operating income 445,245 409,268 9 828,866 822,134 1

Selling and distribution expenses (1,349,028) (1,651,943) (18) (2,604,766) (2,840,135) (8)

Administrative expenses (3,184,603) (3,066,636) 4 (6,358,283) (6,239,343) 2

Other operating expenses (768,856) (886,536) (13) (1,498,315) (1,907,343) (21)

Results from operating activities 1,243,366 1,093,130 14 1,694,197 1,775,925 (5)

Finance cost (423,282) (751,621) (44) (1,584,579) (1,226,219) 29

Finance income 2,514,563 3,514,888 (28) 4,597,718 6,310,751 (27)

Change in insurance contract liabilities 6 (1,857,609) (368,466) 404 (2,943,377) (1,424,679) 107

Share of results of equity accounted investees 1,120,609 1,204,734 (7) 2,193,457 2,165,808 1

Profit before tax 2,597,647 4,692,665 (45) 3,957,416 7,601,586 (48)

Tax expense 7 (359,627) 632,524 (157) (817,026) (51,849) 1,476

Profit for the period 2,238,020 5,325,189 (58) 3,140,390 7,549,737 (58)

Attributable to:

Equity holders of the parent 2,290,064 5,095,884 (55) 3,284,392 7,281,988 (55)

Non-controlling interest (52,044) 229,305 (123) (144,002) 267,749 (154)

2,238,020 5,325,189 (58) 3,140,390 7,549,737 (58)

LKR. LKR. LKR. LKR.

Earnings per share

Basic 1.74 3.67 2.49 5.25

Diluted 1.74 3.67 2.49 5.25

Dividend per share - - 1.00 2.00

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 30 September

Six Months Ended 30 September

Note 2019 2018 2019 2018

Profit for the period 2,238,020 5,325,189 3,140,390 7,549,737

Other comprehensive income

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

Currency translation of foreign operations 2,087,505 3,466,185 2,506,945 4,178,944

Net gain/(loss) on cash flow hedges (477,942) 154,609 (308,072) 173,148

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

(43,365) (97,141) 266,954 (125,558)

Share of other comprehensive income of equity-accounted investees (net of tax) 208,869 447,666 349,024 532,159

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

1,775,067 3,971,319 2,814,851 4,758,693

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

4,126 (830) 19,162 3,172

Remeasurement gain / (loss) on defined benefit plans - - 768 -

Share of other comprehensive income of equity-accounted investees (net of tax) (13,798) 308,191 (17,476) 305,474

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

(9,672) 307,361 2,454 308,646

Tax on other comprehensive income 7 - (32,404) (18,819) (32,404)

Other comprehensive income for the period, net of tax 1,765,395 4,246,276 2,798,486 5,034,935

Total comprehensive income for the period, net of tax 4,003,415 9,571,465 5,938,876 12,584,672

Attributable to:

Equity holders of the parent 3,946,610 9,090,816 5,917,530 12,012,344

Non-controlling interest 56,805 480,649 21,346 572,328

4,003,415 9,571,465 5,938,876 12,584,672


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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30.09.2019 31.03.2019

ASSETSNon-current assetsProperty, plant and equipment 102,883,033 97,688,488 Right- of - use assets 35,861,763 -Lease rentals paid in advance - 14,412,888Investment property 13,911,390 13,985,379 Intangible assets 3,368,648 3,405,692 Investments in equity accounted investees 26,845,231 25,169,094 Non-current financial assets 37,117,444 35,186,305 Deferred tax assets 1,199,841 1,252,978 Other non-current assets 92,701,689 77,274,785

313,889,039 268,375,609

Current assetsInventories 7,826,334 9,547,014 Trade and other receivables 11,959,256 14,420,945 Amounts due from related parties 149,957 225,634 Other current assets 6,766,827 5,515,708 Short term investments 41,603,446 52,756,625 Cash in hand and at bank 8,928,953 12,955,209

77,234,773 95,421,135 Total assets 391,123,812 363,796,744

EQUITY AND LIABILITIESEquity attributable to equity holders of the parentStated capital 62,806,482 62,806,482 Revenue reserves 84,863,134 82,834,219 Other components of equity 61,482,572 58,646,116

209,152,188 204,286,817 Non-controlling interest 25,814,512 26,071,923

Total equity 234,966,700 230,358,740

Non-current liabilitiesInsurance contract liabilities 35,692,018 32,833,058 Interest-bearing loans and borrowings 53,389,889 21,276,504 Deferred tax liabilities 7,705,889 7,756,673 Employee benefit liabilities 2,274,332 2,085,826 Other non-current liabilities 13,904,128 11,928,805

112,966,256 75,880,866

Current liabilitiesTrade and other payables 17,563,776 19,744,821 Amounts due to related parties 5,528 92,532 Income tax liabilities 1,398,461 1,504,819 Short term borrowings 6,024,594 9,970,906 Interest-bearing loans and borrowings 4,535,701 3,204,613 Other current liabilities 2,142,321 2,978,728 Bank overdrafts 11,520,475 20,060,719

43,190,856 57,557,138 Total equity and liabilities 391,123,812 363,796,744

LKR. LKR. Net assets per share 158.67 154.98

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 ThanthirigeGroup Financial Controller

The Board of Directors is responsible for these financial statements.

K N J Balendra J G A Cooray Chairman Deputy Chairman/Group Finance Director

1 November 2019Colombo


CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 September Note 2019 2018

CASH FLOWS FROM OPERATING ACTIVITIESProfit before working capital changes A 2,397,047 3,352,687

(Increase) / Decrease in inventories 1,720,680 (236,334)(Increase) / Decrease in trade and other receivables 5,039,619 2,835,941 (Increase) / Decrease in other current assets (134,556) (2,240,382)(Increase) / Decrease in other non-current assets (15,956,448) (10,450,911)Increase / (Decrease) in trade and other payables and other non-current liabilities (84,770) 2,557,913 Increase / (Decrease) in other current liabilities (873,961) (986,432)Increase / (Decrease) in insurance contract liabilities 2,858,960 1,102,517 Cash generated from operations (5,033,429) (4,065,001)

Finance income received 4,597,718 6,310,751 Finance costs paid (1,549,511) (530,346)Dividend received 851,268 336,000 Tax paid (2,039,285) (1,804,276)Gratuity paid (115,609) (99,040)Net cash flow from operating activities (3,288,848) 148,088

CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIESPurchase and construction of property, plant and equipment (6,953,854) (5,338,835)Purchase of intangible assets (206,859) (142,435)Purchase of lease rights (1,455,768) - Addition to investment property (1,010) (169,960)Increase in interest in equity accounted investees (2,400) -Proceeds from sale of property, plant and equipment, intangible assets and investment properties 116,863 141,488 Proceeds from sale of financial instruments - fair valued through profit or loss 161,061 356,122 Purchase of financial instruments - fair valued through profit or loss (177,205) (462,488)(Purchase) / disposal of short term investments (net) (12,537,094) (21,277,329)(Purchase) / disposal of non current financial assets (net) (1,645,023) (984,716)Grants received for investing activities - 16,998 Net cash flow from / (used in) investing activities (22,701,289) (27,861,155)

CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIESChanges in non-controlling interest 170 292,921 Dividend paid to equity holders of parent (1,318,173) (2,775,057)Dividend paid to shareholders with non-controlling interest (198,531) (278,841)Proceeds from long term borrowings 15,777,275 208,310 Repayment of long term borrowings (3,481,653) (939,878)Proceeds from / (repayment of) other financial liabilities (net) (3,946,312) 413,085 Net cash flow from / (used in) financing activities 6,832,776 (3,079,460)

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (19,157,361) (30,792,527)

CASH AND CASH EQUIVALENTS AT THE BEGINNING 27,718,479 42,427,873

CASH AND CASH EQUIVALENTS AT THE END 8,561,118 11,635,346

ANALYSIS OF CASH AND CASH EQUIVALENTSFavourable balancesShort term investments 11,152,640 13,554,884 Cash in hand and at bank 8,928,953 9,627,014 Unfavourable balancesBank overdrafts (11,520,475) (11,546,552)Total cash and cash equivalents 8,561,118 11,635,346


9



A. Profit before working capital changes Profit before tax 3,957,416 7,601,586

Adjustments for: Finance income (4,597,718) (6,310,751) Finance cost 1,584,579 1,226,219 Share based payment expense 185,617 248,018 Share of results of equity accounted investees (2,193,457) (2,165,808) Depreciation of property, plant and equipment 1,964,468 1,811,631 Provision for impairment losses - 174,700 (Profit)/loss on sale of property, plant and equipment, intangible assets and investment properties

(2,213) 5,001

Amortisation of right- of - use assets / lease rentals paid in advance 887,391 226,798 Amortisation of intangible assets 243,468 163,211 Amortisation of other deferred liabilities - (8,442) Employee benefit provision and related costs 304,721 200,465 Unrealised (gain) / loss on foreign exchange (net) 62,775 180,059

2,397,047 3,352,687


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11


COMPANY INCOME STATEMENT

Quarter Ended 30 September Six Months Ended 30 September

Note 2019 2018 Change % 2019 2018 Change %

Continuing operations

Services transferred over time 367,350 406,965 (10) 735,004 846,391 (13)

Revenue from contracts with customers 367,350 406,965 (10) 735,004 846,391 (13)

Cost of sales (165,999) (214,763) (23) (436,239) (432,223) 1

Gross profit 201,351 192,202 5 298,765 414,168 (28)

Dividend income 106,812 288,960 (63) 1,460,194 1,226,342 19

Other operating income 6,821 9,999 (32) 10,453 237,213 (96)

Administrative expenses (344,621) (227,303) 52 (579,844) (586,533) (1)

Other operating expenses (8,362) (1,145) 630 (18,435) (18,624) (1)

Results from operating activities (37,999) 262,713 (114) 1,171,133 1,272,566 (8)

Finance cost (9,245) (2,648) 249 (206,902) (28,361) 630

Finance income 1,198,921 2,348,154 (49) 1,907,934 3,805,877 (50)

Profit before tax 1,151,677 2,608,219 (56) 2,872,165 5,050,082 (43)

Tax expense 7 (81,788) (329,719) (75) (145,787) (663,495) (78)

Profit for the period 1,069,889 2,278,500 (53) 2,726,378 4,386,587 (38)

LKR. LKR. LKR. LKR .

Dividend per share - - 1.00 2.00



COMPANY STATEMENT OF COMPREHENSIVE INCOME

Quarter Ended 30 September

Six Months Ended 30 September

Note 2019 2018 2019 2018

Profit for the period 1,069,889 2,278,500 2,726,378 4,386,587

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

4,099 (830) 19,216 3,172

Net other comprehensive income not to be reclassified to Income Statement in subsequent periods

4,099 (830) 19,216 3,172

Tax on other comprehensive income 7 - - - -

Other comprehensive income for the period, net of tax 4,099 (830) 19,216 3,172

Total comprehensive income for the period, net of tax 1,073,988 2,277,670 2,745,594 4,389,759


13


COMPANY STATEMENT OF FINANCIAL POSITION

As at 30.09.2019 31.03.2019

ASSETSNon-current assetsProperty, plant and equipment 154,355 160,542 Intangible assets 196,256 93,712 Investments in subsidiaries 82,302,268 77,245,896 Investments in equity accounted investees 10,286,492 10,286,492 Non-current financial assets 299,148 281,269 Other non-current assets 22,617 27,113

93,261,136 88,095,024

Current assetsTrade and other receivables 120,250 106,120 Amounts due from related parties 347,215 181,226 Other current assets 139,991 78,435 Short term investments 29,197,010 41,594,883 Cash in hand and at bank 578,965 3,570,428

30,383,431 45,531,092 Total assets 123,644,567 133,626,116

EQUITY AND LIABILITIESStated capital 62,806,482 62,806,482 Revenue reserves 57,006,394 55,598,189 Other components of equity 2,605,572 2,400,739 Total equity 122,418,448 120,805,410

Non-current liabilitiesInterest-bearing loans and borrowings 439,757 559,382 Employee benefit liabilities 179,815 157,009

619,572 716,391

Current liabilitiesTrade and other payables 200,432 346,926 Amounts due to related parties 1,512 12,537 Income tax liabilities 60,540 225,587 Short term borrowings - 4,000,010 Interest-bearing loans and borrowings 293,500 293,500 Other current liabilities 15,975 5,646 Bank overdrafts 34,588 7,220,109

606,547 12,104,315 Total equity and liabilities 123,644,567 133,626,116

LKR. LKR.Net assets per share 92.87 91.65

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 ThanthirigeGroup Financial Controller

The Board of Directors is responsible for these financial statements.

K N J Balendra J G A Cooray Chairman Deputy Chairman/Group Finance Director

1 November 2019Colombo


COMPANY STATEMENT OF CASH FLOWS


CASH FLOWS FROM OPERATING ACTIVITIESProfit before tax 2,872,165 5,050,082 Adjustments for:Finance income (1,907,934) (3,805,877)Dividend income (1,460,194) (1,226,342)Finance cost 206,902 28,361 Profit on sale of non-current investments (2,185) (224,173)Depreciation of property, plant and equipment 16,694 18,164 Profit/(loss) on sale of property, plant and equipment and intangible assets 29 (34)Amortisation of intangible assets 12,529 5,863 Share based payment expenses 72,075 79,654 Employee benefit provision and related costs 31,954 18,771 Profit before working capital changes (157,965) (55,531)

(Increase) / Decrease in trade and other receivables (165,954) (201,538)(Increase) / Decrease in other current assets (61,555) 99,050 (Increase) / Decrease in other non-current assets 4,496 (6,381)Increase / (Decrease) in trade and other payables (157,520) (38,472)Increase / (Decrease) in other current liabilities 10,328 6,535 Cash generated from operations (528,170) (196,337)

Finance income received 3,262,022 4,189,134 Finance costs paid (206,902) (32,856)Dividend received 1,478,608 1,115,034 Tax paid (310,834) (1,124,309)Gratuity paid (9,148) (21,796)Net cash flow from operating activities 3,685,576 3,928,870

CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIESPurchase and construction of property, plant and equipment (10,624) (15,036)Purchase of intangible assets (115,509) (15,101)Investment in subsidiaries - (163,861)Increase in interest in subsidiaries (4,921,450) (1,778,775)Proceeds from sale of property, plant and equipment and intangible assets 523 206 Proceeds from sale of non-current investments 2,185 290,299 (Purchase) / disposal of short term investments (net) (13,847,009) (21,999,391)(Purchase) / disposal of non current financial assets (net) (19,416) (24,230)Net cash flow from/(used in) investing activities (18,911,300) (23,705,889)

CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIESDividend paid (1,318,173) (2,775,057)Proceeds from / (repayment of) other financial liabilities (net) (4,000,010) -Repayment of long term borrowings (148,170) -Net cash flow from / (used in) financing activities (5,466,353) (2,775,057)

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (20,692,077) (22,552,076)

CASH AND CASH EQUIVALENTS AT THE BEGINNING 26,782,682 31,122,950

CASH AND CASH EQUIVALENTS AT THE END 6,090,605 8,570,874

ANALYSIS OF CASH & CASH EQUIVALENTSFavourable balancesShort term investments 5,546,228 7,434,656 Cash in hand and at bank 578,965 1,192,837 Unfavourable balancesBank overdrafts (34,588) (56,619)Total cash and cash equivalents 6,090,605 8,570,874


15


COMPANY STATEMENT OF CHANGES IN EQUITY

Note Stated capital

Other capital

reserves

Fair value reserveof financial

assets at FVOCI*

Revenue reserves

Total Equity

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

Profit for the period - - - 4,386,587 4,386,587 Other comprehensive income - - 3,172 - 3,172 Total comprehensive income - - 3,172 4,386,587 4,389,759 Share based payments - 248,018 - - 248,018 Final dividend paid - 2017/18 10 - - - (2,775,057) (2,775,057)As at 30 September 2018 62,802,327 2,164,433 38,882 64,493,188 129,498,830

As at 1 April 2019 62,806,482 2,390,966 9,773 55,598,189 120,805,410

Profit for the period - - - 2,726,378 2,726,378 Other comprehensive income - - 19,216 - 19,216 Total comprehensive income - - 19,216 2,726,378 2,745,594 Share based payments - 185,617 - - 185,617 Final dividend paid - 2018/19 10 - - (1,318,173) (1,318,173)As at 30 September 2019 62,806,482 2,576,583 28,989 57,006,394 122,418,448

* FVOCI - Fair value through Other Comprehensive Income



NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

OPERATING SEGMENT INFORMATION

BUSINESS SEGMENTS

The 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 30 September 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Goods transferred at a point in time 5,134,641 5,464,960 4,327,661 4,294,164 16,276,243 13,451,047 - - - - - - 540,083 512,169 26,278,628 23,722,340

Services transferred over time 617,595 591,201 - - 47,591 19,654 3,740,053 5,513,777 206,861 234,711 2,818,080 2,589,696 935,197 746,440 8,365,377 9,695,479

Total segment revenue 5,752,236 6,056,161 4,327,661 4,294,164 16,323,834 13,470,701 3,740,053 5,513,777 206,861 234,711 2,818,080 2,589,696 1,475,280 1,258,609 34,644,005 33,417,819

Eliminations of inter segment revenue (940,158) (785,758)

External revenue 33,703,847 32,632,061

Segment results 339,746 232,634 517,329 536,549 554,211 34,400 (629,460) 412,299 (52,549) (4,431) (137,351) 571,748 (123,071) (43,071) 468,855 1,740,128

Finance cost (34,394) (26,088) (56,258) (58,863) (421,054) (115,482) (113,254) (44,471) (11,660) (8,448) 250,879 (465,052) (37,541) (33,217) (423,282) (751,621)

Finance income 37,400 38,383 12,875 10,717 6,856 6,087 56,409 85,510 27,291 37,784 24,241 23,653 1,224,465 2,368,550 1,389,537 2,570,684

Share of results of equity accounted investees 693,157 858,379 - - - - 863 7,833 61,554 (15,443) 365,035 353,965 - - 1,120,609 1,204,734

Eliminations / adjustments 13,215 (39,333) (3,000) (45,000) - - (2,933) (8,586) (5,604) (23,582) - - 40,250 45,241 41,928 (71,260)

Profit / (loss) before tax 1,049,124 1,063,975 470,946 443,403 140,013 (74,995) (688,375) 452,585 19,032 (14,120) 502,804 484,314 1,104,103 2,337,503 2,597,647 4,692,665

Tax expense (61,944) (9,236) (138,014) (167,558) (44,709) (37,444) 69,631 (55,412) 8,733 (8,617) (62,247) 1,423,818 (131,077) (513,027) (359,627) 632,524

Profit / (loss) for the period 987,180 1,054,739 332,932 275,845 95,304 (112,439) (618,744) 397,173 27,765 (22,737) 440,557 1,908,132 973,026 1,824,476 2,238,020 5,325,189

Purchase and construction of PPE* 38,739 83,033 368,877 228,802 637,506 1,409,029 3,043,317 933,638 53,813 12,405 29,108 41,358 22,556 37,017 4,193,916 2,745,282

Addition to IA* 710 850 597 - 26,104 114,608 14,552 - - - 11,352 1,457 10,620 13,832 63,935 130,747

Depreciation of PPE* 34,674 63,049 206,120 186,984 255,526 209,834 433,292 403,479 11,076 7,656 21,540 18,113 32,087 49,787 994,315 938,902

Amortisation / impairment of IA* 569 516 704 635 14,681 8,269 16,558 11,972 1,688 150 81,206 56,720 8,897 5,188 124,303 83,450

Amortisation of ROU assets* / LRPA* - - 1,607 757 186,472 - 231,079 108,269 4,555 5,038 32,700 - 294 293 456,707 114,357

Employee benefit provision and related costs 7,102 3,808 38,399 31,750 21,800 12,108 24,675 28,603 519 1,088 12,321 4,556 28,569 17,408 133,385 99,321

*PPE (Property, plant and equipment), IA (Intangible assets), ROU (Right of use assets), LRPA (Lease rentals paid in advance)


17



BUSINESS SEGMENTS



For the Quarter ended 30 September 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Goods transferred at a point in time 5,134,641 5,464,960 4,327,661 4,294,164 16,276,243 13,451,047 - - - - - - 540,083 512,169 26,278,628 23,722,340

Services transferred over time 617,595 591,201 - - 47,591 19,654 3,740,053 5,513,777 206,861 234,711 2,818,080 2,589,696 935,197 746,440 8,365,377 9,695,479


Eliminations of inter segment revenue (940,158) (785,758)


Segment results 339,746 232,634 517,329 536,549 554,211 34,400 (629,460) 412,299 (52,549) (4,431) (137,351) 571,748 (123,071) (43,071) 468,855 1,740,128

Finance cost (34,394) (26,088) (56,258) (58,863) (421,054) (115,482) (113,254) (44,471) (11,660) (8,448) 250,879 (465,052) (37,541) (33,217) (423,282) (751,621)

Finance income 37,400 38,383 12,875 10,717 6,856 6,087 56,409 85,510 27,291 37,784 24,241 23,653 1,224,465 2,368,550 1,389,537 2,570,684

Share of results of equity accounted investees 693,157 858,379 - - - - 863 7,833 61,554 (15,443) 365,035 353,965 - - 1,120,609 1,204,734

Eliminations / adjustments 13,215 (39,333) (3,000) (45,000) - - (2,933) (8,586) (5,604) (23,582) - - 40,250 45,241 41,928 (71,260)

Profit / (loss) before tax 1,049,124 1,063,975 470,946 443,403 140,013 (74,995) (688,375) 452,585 19,032 (14,120) 502,804 484,314 1,104,103 2,337,503 2,597,647 4,692,665

Tax expense (61,944) (9,236) (138,014) (167,558) (44,709) (37,444) 69,631 (55,412) 8,733 (8,617) (62,247) 1,423,818 (131,077) (513,027) (359,627) 632,524

Profit / (loss) for the period 987,180 1,054,739 332,932 275,845 95,304 (112,439) (618,744) 397,173 27,765 (22,737) 440,557 1,908,132 973,026 1,824,476 2,238,020 5,325,189

Purchase and construction of PPE* 38,739 83,033 368,877 228,802 637,506 1,409,029 3,043,317 933,638 53,813 12,405 29,108 41,358 22,556 37,017 4,193,916 2,745,282

Addition to IA* 710 850 597 - 26,104 114,608 14,552 - - - 11,352 1,457 10,620 13,832 63,935 130,747

Depreciation of PPE* 34,674 63,049 206,120 186,984 255,526 209,834 433,292 403,479 11,076 7,656 21,540 18,113 32,087 49,787 994,315 938,902

Amortisation / impairment of IA* 569 516 704 635 14,681 8,269 16,558 11,972 1,688 150 81,206 56,720 8,897 5,188 124,303 83,450

Amortisation of ROU assets* / LRPA* - - 1,607 757 186,472 - 231,079 108,269 4,555 5,038 32,700 - 294 293 456,707 114,357

Employee benefit provision and related costs 7,102 3,808 38,399 31,750 21,800 12,108 24,675 28,603 519 1,088 12,321 4,556 28,569 17,408 133,385 99,321






BUSINESS SEGMENTS



For the six months ended 30 September 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Goods transferred at a point in time 9,992,368 10,536,103 8,876,383 7,996,442 31,968,817 26,549,733 - - - - - - 1,073,195 1,093,791 51,910,763 46,176,069

Services transferred over time 1,239,936 1,130,129 - - 47,591 39,217 6,654,722 9,898,353 416,776 461,470 5,276,842 5,112,640 1,779,325 1,528,652 15,415,192 18,170,461


Eliminations of inter segment revenue (1,884,092) (1,551,364)


Segment result 492,371 476,439 1,143,911 853,352 1,181,674 334,459 (1,668,940) 95,233 (126,244) (30,925) 174,076 983,758 (230,519) (167,699) 966,329 2,544,617

Finance cost (71,659) (49,526) (120,497) (79,979) (851,221) (185,670) (218,227) (100,164) (22,648) (16,924) (32,625) (711,281) (267,702) (82,675) (1,584,579) (1,226,219)

Finance income 74,004 71,272 26,535 35,152 13,330 11,439 127,992 170,791 95,861 103,657 113,315 87,665 1,958,438 3,844,897 2,409,475 4,324,873

Share of results of equity accounted investees 1,537,286 1,486,949 - - - - (14,746) 19,870 47,226 (15,443) 623,691 674,432 - - 2,193,457 2,165,808

Eliminations / adjustments - (78,666) (6,000) (26,000) - - (5,866) (11,519) (15,400) (45,231) - - - (46,077) (27,266) (207,493)

Profit / (loss) before tax 2,032,002 1,906,468 1,043,949 782,525 343,783 160,228 (1,779,787) 174,211 (21,205) (4,866) 878,457 1,034,574 1,460,217 3,548,446 3,957,416 7,601,586

Tax expense (83,124) (25,709) (304,410) (275,221) (106,856) (102,183) 142,100 (53,363) (14,604) (23,731) (120,819) 1,423,552 (329,313) (995,194) (817,026) (51,849)

Profit / (loss) for the period 1,948,878 1,880,759 739,539 507,304 236,927 58,045 (1,637,687) 120,848 (35,809) (28,597) 757,638 2,458,126 1,130,904 2,553,252 3,140,390 7,549,737

Purchase and construction of PPE* 154,274 104,844 530,826 1,098,990 1,296,566 2,568,378 4,707,530 1,425,610 149,384 26,943 50,790 67,777 64,484 46,293 6,953,854 5,338,835

Addition to IA* 710 850 1,408 - 43,380 122,244 19,877 - - - 18,871 2,665 122,613 16,676 206,859 142,435

Depreciation of PPE* 68,984 128,503 409,495 347,675 509,560 389,292 848,642 795,532 21,945 14,826 42,485 36,142 63,357 99,661 1,964,468 1,811,631

Amortisation / impairment of IA* 1,138 1,031 1,392 1,556 28,139 11,989 30,761 23,943 3,375 343 162,198 113,734 16,465 10,615 243,468 163,211

Amortisation of ROU assets* / LRPA* - - 3,147 1,513 372,033 - 456,158 214,643 9,594 10,055 45,872 - 587 587 887,391 226,798

Employee benefit provision and related costs 13,347 8,963 74,569 58,475 36,520 23,836 96,678 62,587 1,161 1,402 19,520 11,818 62,926 33,384 304,721 200,465



19



BUSINESS SEGMENTS



For the six months ended 30 September 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Goods transferred at a point in time 9,992,368 10,536,103 8,876,383 7,996,442 31,968,817 26,549,733 - - - - - - 1,073,195 1,093,791 51,910,763 46,176,069

Services transferred over time 1,239,936 1,130,129 - - 47,591 39,217 6,654,722 9,898,353 416,776 461,470 5,276,842 5,112,640 1,779,325 1,528,652 15,415,192 18,170,461


Eliminations of inter segment revenue (1,884,092) (1,551,364)


Segment result 492,371 476,439 1,143,911 853,352 1,181,674 334,459 (1,668,940) 95,233 (126,244) (30,925) 174,076 983,758 (230,519) (167,699) 966,329 2,544,617

Finance cost (71,659) (49,526) (120,497) (79,979) (851,221) (185,670) (218,227) (100,164) (22,648) (16,924) (32,625) (711,281) (267,702) (82,675) (1,584,579) (1,226,219)

Finance income 74,004 71,272 26,535 35,152 13,330 11,439 127,992 170,791 95,861 103,657 113,315 87,665 1,958,438 3,844,897 2,409,475 4,324,873

Share of results of equity accounted investees 1,537,286 1,486,949 - - - - (14,746) 19,870 47,226 (15,443) 623,691 674,432 - - 2,193,457 2,165,808

Eliminations / adjustments - (78,666) (6,000) (26,000) - - (5,866) (11,519) (15,400) (45,231) - - - (46,077) (27,266) (207,493)

Profit / (loss) before tax 2,032,002 1,906,468 1,043,949 782,525 343,783 160,228 (1,779,787) 174,211 (21,205) (4,866) 878,457 1,034,574 1,460,217 3,548,446 3,957,416 7,601,586

Tax expense (83,124) (25,709) (304,410) (275,221) (106,856) (102,183) 142,100 (53,363) (14,604) (23,731) (120,819) 1,423,552 (329,313) (995,194) (817,026) (51,849)

Profit / (loss) for the period 1,948,878 1,880,759 739,539 507,304 236,927 58,045 (1,637,687) 120,848 (35,809) (28,597) 757,638 2,458,126 1,130,904 2,553,252 3,140,390 7,549,737

Purchase and construction of PPE* 154,274 104,844 530,826 1,098,990 1,296,566 2,568,378 4,707,530 1,425,610 149,384 26,943 50,790 67,777 64,484 46,293 6,953,854 5,338,835

Addition to IA* 710 850 1,408 - 43,380 122,244 19,877 - - - 18,871 2,665 122,613 16,676 206,859 142,435

Depreciation of PPE* 68,984 128,503 409,495 347,675 509,560 389,292 848,642 795,532 21,945 14,826 42,485 36,142 63,357 99,661 1,964,468 1,811,631

Amortisation / impairment of IA* 1,138 1,031 1,392 1,556 28,139 11,989 30,761 23,943 3,375 343 162,198 113,734 16,465 10,615 243,468 163,211

Amortisation of ROU assets* / LRPA* - - 3,147 1,513 372,033 - 456,158 214,643 9,594 10,055 45,872 - 587 587 887,391 226,798

Employee benefit provision and related costs 13,347 8,963 74,569 58,475 36,520 23,836 96,678 62,587 1,161 1,402 19,520 11,818 62,926 33,384 304,721 200,465






BUSINESS SEGMENTS

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


As at 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019

Property, plant and equipment 1,122,765 1,038,231 9,439,354 9,322,821 11,126,209 10,375,534 52,259,247 48,150,299 4,594,412 4,437,594 2,097,764 2,089,459 1,318,673 1,350,725 81,958,424 76,764,663 Right-of-use-assets 582,176 582,176 226,846 143,237 6,687,526 - 26,626,908 12,206,110 227,168 227,978 267,124 - 37,743 38,330 34,655,491 13,197,831 Investment property 7,662 7,662 254,034 254,034 - - 4,338,796 4,338,796 29,611,052 28,752,959 - - 826,479 1,753,332 35,038,023 35,106,783 Intangible assets 11,127 11,556 247,917 247,900 356,390 341,148 337,791 348,675 33,422 5,327 1,361,231 1,410,850 243,311 169,069 2,591,189 2,534,525 Non-current financial assets 143,167 142,837 210,775 181,764 153,726 151,432 6,463,823 6,231,552 346,895 607,685 35,413,716 33,285,655 366,353 346,930 43,098,455 40,947,855 Other non-current assets 21,843 22,508 58,150 53,241 869,520 1,185,653 42,186 42,016 92,095,989 76,337,994 111,386 109,713 30,878 48,017 93,229,952 77,799,142 Segment non-current assets 1,888,740 1,804,970 10,437,076 10,202,997 19,193,371 12,053,767 90,068,751 71,317,448 126,908,938 110,369,537 39,251,221 36,895,677 2,823,437 3,706,403 290,571,534 246,350,799

Investments in equity accounted investees 12,932,305 11,993,153 - - - - 1,267,491 1,279,836 1,835,346 1,788,120 10,810,089 10,107,985 - - 26,845,231 25,169,094 Deferred tax assets 1,199,841 1,252,978 Goodwill 738,596 738,596 Eliminations / adjustments (5,466,163) (5,135,858) Total non-current assets 313,889,039 268,375,609

Inventories 1,083,129 1,290,816 1,875,697 1,740,779 4,154,823 5,889,251 308,860 313,126 19,319 17,020 20,191 16,771 395,631 304,621 7,857,650 9,572,384 Trade and other receivables 2,916,746 2,509,977 2,382,436 2,806,119 2,453,993 2,615,831 1,683,249 4,025,035 605,743 832,313 1,384,560 1,336,770 855,533 541,338 12,282,260 14,667,383 Short term investments 572,661 310,960 1,808 89,476 12,767 10,064 2,687,043 3,325,555 1,327,179 619,988 8,667,447 7,497,116 29,425,931 41,982,898 42,694,836 53,836,057 Cash in hand and at bank 2,214,979 3,542,220 250,945 291,851 462,978 478,037 996,818 1,472,607 2,034,294 1,200,592 537,290 661,322 2,253,655 5,246,170 8,750,959 12,892,799 Segment current assets 6,787,515 7,653,973 4,510,886 4,928,225 7,084,561 8,993,183 5,675,970 9,136,323 3,986,535 2,669,913 10,609,488 9,511,979 32,930,750 48,075,027 71,585,705 90,968,623

Other current assets 6,766,827 5,515,708 Eliminations / adjustments (1,117,759) (1,063,196) Total current assets 77,234,773 95,421,135 Total assets 391,123,812 363,796,744

Insurance contract liabilities - - - - - - - - - - 35,692,018 32,833,058 - - 35,692,018 32,833,058 Interest bearing loans and borrowings - - 1,286,215 1,458,333 6,048,279 27,443 25,921,272 8,828,076 25,471,187 16,128,195 175,463 - 439,757 571,382 59,342,173 27,013,429 Employee benefit liabilities 92,410 80,255 522,497 465,817 244,489 211,578 824,478 786,638 129,223 55,650 154,228 143,928 307,007 341,961 2,274,332 2,085,827 Other non-current liabilities - - 130,061 137,590 - 21,022 1,119 209,754 13,773,123 11,560,605 - - 497 507 13,904,800 11,929,478 Segment non-current liabilities 92,410 80,255 1,938,773 2,061,740 6,292,768 260,043 26,746,869 9,824,468 39,373,533 27,744,450 36,021,709 32,976,986 747,261 913,850 111,213,323 73,861,792

Deferred tax liabilities 7,705,889 7,756,673 Eliminations / adjustments (5,952,956) (5,737,599) Total non-current liabilities 112,966,256 75,880,866

Trade and other payables 1,885,354 1,909,280 1,790,247 1,796,864 7,631,503 7,877,326 2,258,610 2,479,694 634,136 2,360,443 2,904,826 2,828,106 680,570 740,366 17,785,246 19,992,079 Short term borrowings 2,695,933 3,485,908 - - 2,923,066 2,494,393 1,506,390 1,069,368 - - - - 12,074 4,012,084 7,137,463 11,061,753 Interest bearing loans and borrowings - - 690,474 523,147 284,639 - 1,482,541 1,249,235 1,708,431 1,138,731 76,115 - 293,500 293,500 4,535,700 3,204,613 Bank overdrafts 607,508 767,891 891,685 1,000,085 6,510,583 7,616,440 2,159,364 1,739,491 1,112,020 1,366,179 191,945 408,698 119,370 7,233,934 11,592,475 20,132,718 Segment current liabilities 5,188,795 6,163,079 3,372,406 3,320,096 17,349,791 17,988,159 7,406,905 6,537,788 3,454,587 4,865,353 3,172,886 3,236,804 1,105,514 12,279,884 41,050,884 54,391,163

Income tax liabilities 1,398,461 1,504,819 Other current liabilities 2,142,321 2,978,728 Eliminations / adjustments (1,400,810) (1,317,572) Total current liabilities 43,190,856 57,557,138 Total liabilities 156,157,112 133,438,004

Total segment assets 8,676,255 9,458,943 14,947,962 15,131,222 26,277,932 21,046,950 95,744,721 80,453,771 130,895,473 113,039,450 49,860,709 46,407,656 35,754,187 51,781,430 362,157,239 337,319,422 Total segment liabilities 5,281,205 6,243,334 5,311,179 5,381,836 23,642,559 18,248,202 34,153,774 16,362,256 42,828,120 32,609,803 39,194,595 36,213,790 1,852,775 13,193,734 152,264,207 128,252,955


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BUSINESS SEGMENTS

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


As at 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019 30.09.2019 31.03.2019

Property, plant and equipment 1,122,765 1,038,231 9,439,354 9,322,821 11,126,209 10,375,534 52,259,247 48,150,299 4,594,412 4,437,594 2,097,764 2,089,459 1,318,673 1,350,725 81,958,424 76,764,663 Right-of-use-assets 582,176 582,176 226,846 143,237 6,687,526 - 26,626,908 12,206,110 227,168 227,978 267,124 - 37,743 38,330 34,655,491 13,197,831 Investment property 7,662 7,662 254,034 254,034 - - 4,338,796 4,338,796 29,611,052 28,752,959 - - 826,479 1,753,332 35,038,023 35,106,783 Intangible assets 11,127 11,556 247,917 247,900 356,390 341,148 337,791 348,675 33,422 5,327 1,361,231 1,410,850 243,311 169,069 2,591,189 2,534,525 Non-current financial assets 143,167 142,837 210,775 181,764 153,726 151,432 6,463,823 6,231,552 346,895 607,685 35,413,716 33,285,655 366,353 346,930 43,098,455 40,947,855 Other non-current assets 21,843 22,508 58,150 53,241 869,520 1,185,653 42,186 42,016 92,095,989 76,337,994 111,386 109,713 30,878 48,017 93,229,952 77,799,142 Segment non-current assets 1,888,740 1,804,970 10,437,076 10,202,997 19,193,371 12,053,767 90,068,751 71,317,448 126,908,938 110,369,537 39,251,221 36,895,677 2,823,437 3,706,403 290,571,534 246,350,799

Investments in equity accounted investees 12,932,305 11,993,153 - - - - 1,267,491 1,279,836 1,835,346 1,788,120 10,810,089 10,107,985 - - 26,845,231 25,169,094 Deferred tax assets 1,199,841 1,252,978 Goodwill 738,596 738,596 Eliminations / adjustments (5,466,163) (5,135,858) Total non-current assets 313,889,039 268,375,609

Inventories 1,083,129 1,290,816 1,875,697 1,740,779 4,154,823 5,889,251 308,860 313,126 19,319 17,020 20,191 16,771 395,631 304,621 7,857,650 9,572,384 Trade and other receivables 2,916,746 2,509,977 2,382,436 2,806,119 2,453,993 2,615,831 1,683,249 4,025,035 605,743 832,313 1,384,560 1,336,770 855,533 541,338 12,282,260 14,667,383 Short term investments 572,661 310,960 1,808 89,476 12,767 10,064 2,687,043 3,325,555 1,327,179 619,988 8,667,447 7,497,116 29,425,931 41,982,898 42,694,836 53,836,057 Cash in hand and at bank 2,214,979 3,542,220 250,945 291,851 462,978 478,037 996,818 1,472,607 2,034,294 1,200,592 537,290 661,322 2,253,655 5,246,170 8,750,959 12,892,799 Segment current assets 6,787,515 7,653,973 4,510,886 4,928,225 7,084,561 8,993,183 5,675,970 9,136,323 3,986,535 2,669,913 10,609,488 9,511,979 32,930,750 48,075,027 71,585,705 90,968,623

Other current assets 6,766,827 5,515,708 Eliminations / adjustments (1,117,759) (1,063,196) Total current assets 77,234,773 95,421,135 Total assets 391,123,812 363,796,744

Insurance contract liabilities - - - - - - - - - - 35,692,018 32,833,058 - - 35,692,018 32,833,058 Interest bearing loans and borrowings - - 1,286,215 1,458,333 6,048,279 27,443 25,921,272 8,828,076 25,471,187 16,128,195 175,463 - 439,757 571,382 59,342,173 27,013,429 Employee benefit liabilities 92,410 80,255 522,497 465,817 244,489 211,578 824,478 786,638 129,223 55,650 154,228 143,928 307,007 341,961 2,274,332 2,085,827 Other non-current liabilities - - 130,061 137,590 - 21,022 1,119 209,754 13,773,123 11,560,605 - - 497 507 13,904,800 11,929,478 Segment non-current liabilities 92,410 80,255 1,938,773 2,061,740 6,292,768 260,043 26,746,869 9,824,468 39,373,533 27,744,450 36,021,709 32,976,986 747,261 913,850 111,213,323 73,861,792

Deferred tax liabilities 7,705,889 7,756,673 Eliminations / adjustments (5,952,956) (5,737,599) Total non-current liabilities 112,966,256 75,880,866

Trade and other payables 1,885,354 1,909,280 1,790,247 1,796,864 7,631,503 7,877,326 2,258,610 2,479,694 634,136 2,360,443 2,904,826 2,828,106 680,570 740,366 17,785,246 19,992,079 Short term borrowings 2,695,933 3,485,908 - - 2,923,066 2,494,393 1,506,390 1,069,368 - - - - 12,074 4,012,084 7,137,463 11,061,753 Interest bearing loans and borrowings - - 690,474 523,147 284,639 - 1,482,541 1,249,235 1,708,431 1,138,731 76,115 - 293,500 293,500 4,535,700 3,204,613 Bank overdrafts 607,508 767,891 891,685 1,000,085 6,510,583 7,616,440 2,159,364 1,739,491 1,112,020 1,366,179 191,945 408,698 119,370 7,233,934 11,592,475 20,132,718 Segment current liabilities 5,188,795 6,163,079 3,372,406 3,320,096 17,349,791 17,988,159 7,406,905 6,537,788 3,454,587 4,865,353 3,172,886 3,236,804 1,105,514 12,279,884 41,050,884 54,391,163

Income tax liabilities 1,398,461 1,504,819 Other current liabilities 2,142,321 2,978,728 Eliminations / adjustments (1,400,810) (1,317,572) Total current liabilities 43,190,856 57,557,138 Total liabilities 156,157,112 133,438,004

Total segment assets 8,676,255 9,458,943 14,947,962 15,131,222 26,277,932 21,046,950 95,744,721 80,453,771 130,895,473 113,039,450 49,860,709 46,407,656 35,754,187 51,781,430 362,157,239 337,319,422 Total segment liabilities 5,281,205 6,243,334 5,311,179 5,381,836 23,642,559 18,248,202 34,153,774 16,362,256 42,828,120 32,609,803 39,194,595 36,213,790 1,852,775 13,193,734 152,264,207 128,252,955




1 CORPORATE INFORMATIONJohn 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 STATEMENTSThe financial statements for the period ended 30 September 2019 , 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 STATEMENTSThe interim condensed financial statements of the Group and the Company for the 06 months ended 30 September 2019 were authorised for issue by the Board of Directors on 01 November 2019.

4 BASIS OF PREPARATION AND CHANGES TO THE GROUP'S ACCOUNTING POLICIES4.1 Basis of PreparationThe interim condensed consolidated financial statements for the six months ended 30 September 2019 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 2019.

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 disclosuresThe 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 30 September 2019 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 GroupThe 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 2019, except for the adoption of new standards effective as of 1 April 2019. 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 16 Leases. As required by LKAS 34, the nature and effect of these changes are disclosed below.

SLFRS 16 supersedes LKAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model. The Group has adopted SLFRS 16 using modified retrospective method from 1 April 2019, without restating comparatives for the 2018/19 reporting period, as permitted under the specific transitional provisions in the standard.

Lessor accounting under SLFRS 16 is substantially unchanged from under LKAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in LKAS 17. Therefore, SLFRS 16 does not have an impact for leases where the Group is the lessor.

23


The effect of adoption SLFRS 16 as at 1 April 2019 is as follows:

In LKR ’000s

Assets

Property plant and equipment (24,637)

Right of use assets 28,451,838

Lease rentals paid in advance (14,412,889)

Other non current assets (572,650)

Other current assets (20,591)

Total assets 13,421,071

Liabilities

Interest-bearing loans and borrowings 13,629,028

Other deferred liabilities (207,957)

Total Liabilities 13,421,071

a) Nature of the effect of adoption of SLFRS 16The Group has lease contracts for various items such as lands, offices, warehouses, retail stores and vehicles. Property leases are the major asset included in the right of use assets category, typically for in between 5 to 99 years of lease term and have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. On adoption of SLFRS 16, the Group recognised lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of LKAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the Group's incremental borrowing rate as of the transition date.

Leases previously classified as finance leasesFor leases previously classified as finance leases, the entity recognised the carrying amount of the lease asset and lease liability immediately before transition as the carrying amount of the right of use asset and the lease liability at the date of initial application. The requirements of SLFRS 16 was applied to these leases from 1 April 2019.

Leases previously accounted for as operating leasesThe Group recognised right of use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases and leases of low-value assets. The right of use assets for most leases were recognised based on the carrying amount as if the standard had always been applied, apart from the use of incremental borrowing rate at the date of initial application. Lease liabilities were recognised based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application.

The lease liabilities as at 1 April 2019 can be reconciled to the operating lease commitments as of 31 March 2019 as follows:

In LKR ’000s

Operating lease commitments as at 31 March 2019 12,310,306

Discounted operating lease commitments at 1 April 2019 8,312,730

Less:

Commitments relating to short-term leases (101,374)

Add:

Commitments relating to leases previously classified as finance leases 27,443

Payments in optional extension periods not recognised as at 31 March 2019 5,390,229

Lease liabilities as at 1 April 2019 13,629,028



b) Summary of new accounting policiesSet out below are the new accounting policies of the Group upon adoption of SLFRS 16, which have been applied from the date of initial application:

Right of use assetsThe Group recognises right of use assets when the underlying asset is available for use. Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right of use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right of use assets are depreciated on a straight-line basis over the shorter of its estimated useful life or the lease term. Right of use assets are subject to impairment.

Lease liabilitiesAt the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

Short-term leases and leases of low-value assetsThe Group applies the short-term lease recognition exemption to leases that have a lease term of 12 months or less from the commencement date. It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

Amounts recognised in the statement of financial position and income statement set out below, are the carrying amounts of the Group's right of use assets and lease liabilities and the movements for the period ended 30 September 2019.

RIGHT OF USE ASSETS

In LKR ’000s Lease hold properties

MotorVehicles

Total Lease Liabilities

As at 1 April 2019 13,551,331 77,697 13,629,028 13,629,028

Additions 7,660,013 2,664 7,662,677 6,206,909

Transfers 14,755,067 24,637 14,779,704 27,443

Amortisation expense (868,868) (18,523) (887,391) -

Interest expense - - - 523,446

Payments - - - (958,470)

Exchange difference 677,746 - 677,745 270,411

As at 30 September 2019 35,775,289 86,474 35,861,763 19,698,767

5 OPERATING SEGMENTSFor management purposes, the Group has been organised into business units based on their products and services and has seven reportable operating segments as follows:TransportationConsumer Foods RetailLeisurePropertyFinancial ServicesOthers

25


6 CHANGE IN INSURANCE CONTRACT LIABILITIESThe 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 six months ended 30 September 2019 2018 2019 2018

In LKR '000s

Income statement

Current income tax 797,768 1,681,059 145,787 663,495

Deferred tax charge/(reversal) 19,258 (1,629,210) - -

817,026 51,849 145,787 663,495

Other comprehensive Income

Deferred tax charge/(reversal) 18,819 32,404 - -

18,819 32,404 - -

8 RELATED PARTY TRANSACTIONS

GROUP COMPANY

For the six months ended 30 September 2019 2018 2019 2018

In LKR '000s

Transactions with related parties

Subsidiaries

Purchases of goods - - 3,030 3,524

Rendering of services - - 566,241 640,078

Receiving of services - - 41,646 28,878

Rent paid - - 20,725 24,216

Dividend received - - 648,995 937,382

Equity accounted investees

Sales of goods 12,096 30,392 - -

Rendering of services 182,574 329,501 164,332 171,381

Receiving of services 107,490 301,573 145 1,021

Interest received 36,186 408,433 - 360,929

Interest paid 5,047 360 - 1

Dividend received - - 811,199 288,960

Key management personnel (KMP)

Sales of goods - - - -

Close family members of KMP


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


Post employment benefit plan

Contributions to the provident fund 134,432 128,508 27,813 30,958



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

As at 30-09-2019 30-06-2019

Ordinary shares * 1,318,173,279 1,318,173,279

* Includes global depository receipts of 1,320,942 (30 June 2019 - 1,320,942).

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

As at 30-09-2019 30-06-2019

Public shareholding (%) 99.15 99.15

Number of public shareholders 11,330 11,428

Compliant under option 1 - Float adjusted market capitalization (LKR Bn) 201.01 181.28

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 30 September 2019.

9.4 Market price per shareThe Company's highest, lowest and last traded market price is as given below:

For the quarter ended 30 September 2019 LKR

2018 LKR

Highest 158.80 149.80

Lowest 139.00 127.00

Last traded 153.80 131.50

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

As at 30-09-2019 30-06-2019

K N J Balendra - Chairman/CEO 10,914,400 10,914,400

J G A Cooray - Deputy Chairman /Group Finance Director 207,105 207,105

D A Cabraal 20,137 20,137

R Coomaraswamy Nil Nil

A N Fonseka Nil Nil

M A Omar Nil Nil

M P Perera Nil Nil

S S H Wijayasuriya Nil Nil

27


9.6 Twenty largest shareholdersTwenty largest shareholders of the Company are as given below:

As at 30-09-2019 30-06-2019

Number of shares

% Number of shares

%

1 Mr S E Captain 144,227,030 10.9 150,386,770 11.4

2 Broga Hill Investments Ltd 141,854,717 10.8 141,854,717 10.8

3 Melstacorp PLC 128,917,111 9.8 128,917,111 9.8

4 Paints & General Industries Limited 107,218,047 8.1 90,889,316 6.9

5 Schroder International Selection Fund 42,261,880 3.2 42,503,505 3.2

6 HWIC Asia Fund 39,250,982 3.0 39,250,982 3.0

7 Edgbaston Asian Equity Trust 33,244,121 2.5 34,090,403 2.6

8 Norges Bank Account 2 25,104,012 1.9 22,006,813 1.7

9 Aberdeen Standard Asia Focus PLC 22,693,572 1.7 22,693,572 1.7

10 Aberdeen Global-Asian Smaller Companies Fund 21,600,554 1.6 21,600,554 1.6

11 Mr Kandiah Balendra 20,011,476 1.5 20,006,476 1.5

12 Aberdeen Global Asia Pacific Equity Fund 19,898,613 1.5 19,898,613 1.5

13 Fidelity Fund-Pacific 19,060,108 1.4 19,060,108 1.4

14 Employees Trust Fund Board 18,834,190 1.4 18,834,190 1.4

15 First State Investments ICVC - Stewart Investors Asia Pacific Fund 18,471,219 1.4 18,471,219 1.4

16 Matthews Emerging Asia Fund 13,729,019 1.0 13,729,019 1.0

17 Mrs C S De Fonseka 13,226,598 1.0 13,226,598 1.0

18 Mrs S A J De Fonseka 13,116,826 1.0 13,116,826 1.0

19 Mr R S Captain 11,561,096 0.9 19,225,685 1.5

20 Edinburgh Dragon Trust PLC 11,560,519 0.9 11,560,519 0.9

10 DIVIDENDS PAID

For the six months ended 30 SeptemberIn LKR '000s

2019 2018

Final dividend for 2018/19 LKR 1.00 (2017/18 LKR 2.00) 1,318,173 2,775,057

11 CONTINGENCIES, CAPITAL AND OTHER COMMITMENTSThere 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 2019.

12 EVENTS AFTER THE REPORTING PERIODInterim Dividend The Board of Directors of the Company declared an interim dividend of LKR 1.00 per share for the financial year 2019/20. 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 25 November 2019.


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 CoomaraswamyA 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

Project Risk Assessment CommitteeS S H Wijayasuriya - ChairmanK N J BalendraJ G A CoorayM P Perera

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

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

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

Sustainability, Enterprise Risk Management and Group Initiatives186 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 MawathaColombo 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

GOING FORW RD - JKHThe Group profit before tax (PBT) at Rs.2.60 billion in the second quarter of the...

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