TOURISM ANILANA. Table of Content Concept About the Company The proposition Promoters and Management USP Stock Market Data Group Structure Marketing and

TOURISM

ANILANA

Table of Content• Concept

• About the Company

• The proposition

• Promoters and Management

• USP

• Stock Market Data

• Group Structure

• Marketing and Competition

• Financial Summary

ConceptTo develop Anilana as a unique, luxury, Sri Lankan hotel brand and to become one of the market leaders/(first five) within ten years in the USD300 plus segment

Build on the existing hotels on eastern coast and develop new hotels in Colombo and other locations

History of the company• The company was incorporated in 2010 in Colombo

• First hotel with 60 rooms was opened in March 2013 in the East coast of Sri Lanka

• Anilana was listed on Colombo Stock Exchange in July 2013 and USD 5 million was raised (Promoters had invested USD 15 million prior to listing)

• Anilana raised USD6 million from its Rights Issue in 2014

• GMO, the US Fund which manages funds over USD100 billion has invested in 13% of Anilanas’ equity

History of the company - 2

• Second East coast hotel with 70 rooms was opened April 2014 (Avg Occupancy of 45%)

• Started Construction of 53 room hotel located in central Sri Lanka (near Sigiriya Rock)

• Land at Colombo has been Identified for real estate project and agreement for acquisition is done

• Company owns other properties in east coast where it propose to develop Villas

Proposition• Identifying a strategic investor who would invest USD 30 million (for a stake to be negotiated) to meet initial requirement for

• Completing Dambulla, 15 Villas

• Construct Colombo Property

• Repayment of debt

Management Asanga Seneviratne – Managing Director

• He is an entrepreneur, investor and investment banker

• He has over 23 years of capital market experience and 7 years of managing hotels

• He is also a promoter of Nation Lanka Finance PLC

Management -2 Manajula Perera – Head of Finance and Compliance

• A chartered accountant with over 15 years of experience in the industry

Gihan De Zoysa- Chief project manager for the group and has 07 years of experience in similar capacity

Shamila Philips – Head of Sales and Marketing and has 18 years of international experience

Strategic Plan• Anilana has developed and will continue to strengthen a unique Sri Lankan brand with originality, authenticity and distinct style as key features.

• Anilana has 130 Rooms at present and plans to have 500 rooms in 3 years and 750-1000 rooms in 10 years at various locations. All these will be ultra luxury rooms (average room rate is expected to exceed USD250).

LocationsExisting

• Pasikuda (East Coast)

• Nilaweli (East Coast)

• Dambulla (Central)

Proposed

• Colombo

• Galle

• Kandy

• Bentota/Hikkaduwa

• Nuwara Eliya

• Jaffna

Special Features Proposed• Yacht Services to act as floating hotels and cruise from Colombo to Trincomalee with stops at Galle and Arugam Bay

• Development of dive centers, where there are wrecks & other features that would attract divers

• Ayurvedic Spas run by well known operators

• Unique room design features

• Luxury rail coaches, air charter and other options to improve connectivity between hotels

Marketing Plan• Tie ups with strong marketing agencies in China and other Asian countries

• Tie ups with high-end tour operates such as Jahn Reisen, Hotel plans, Scott Dunn, etc and DMC (destination management companies)

• Planning to advertise on travel magazines such as Conde Nast, Travel and Leisure

• Partnering with web operates and airline companies such as Emirate holidays, British airways holidays

• GSA and country representative to attract high spenders and long stay tourists

TOURISM

PROJECT AURA

Content• History of Aura Group

• The proposition

• USP



• Group Structure



History of Aura Group

• Established 1967 to run hotels in Sri Lanka

• Acquired 2 hotels in Kandy with about 150 rooms

• Runs 13 guest houses and restaurants across Sri Lanka with 112 rooms

• Runs 3 boutique hotels in different locations

• Proposes to build 2 hotels in Maldives with 225 rooms. The islands have been leased.

The Proposition• To raise USD33mn by offering 35% of the shareholding to part finance construction of Maldives hotels and refurbish existing hotels.

USP• Has locations across most of the tourist map of Sri Lanka

• The group is one of the most reputed operators in the tourism sector

Promoters and Management

• The promoters are one of the oldest and very reputed business families in Sri Lanka

• Has one of the strongest hotel management teams in Sri Lanka

• The group has won several international awards for its hotels

Stock Market Data

• Market Cap (07/2014) USD25mn

• Book Value (03/2014) USD56mn

• Share price (22/07/2014) LKR19

• 52 week high/low: LKR20/LKR14

• Total number of shares: 171mn

Group Structure

Holding Company

2 Hotels in Kandy 14 Rest

Houses and Restaurants

3 Boutique Hotels

Project Aura

70.44%

76.54%100%

100%

Colombo Hotel

Marketing and Competition• The group has tie-ups with international tour operators and with refurbishment of the Colombo and Kandy hotels expects substantial growth in occupancy rates.

• There is a growing inflow of Chinese tourists to Maldives and occupancy rates for their Maldives hotels is expected to be high.

• 17% yoy increase in tourist arrivals to Sri Lanka with a revenue CAGR of 10% for last 2 years.

• 90% occupancy achieved in Maldives hotels over the past years.

Financial Summary

USD mn 2012 2013 2014E 2015E 2016E

Total Equity 51 56 62 115 120

Total Assets 63 75 78 181 183

Retained Earnings 38 42 44 47 52

Borrowings 10 7 9 54 51

Revenue 7.1 8.3 9.5 14.1 18.9

Gross Profit 4.8 5.8 7.1 10.6 14.1

MANUFACTURING AND REAL ESTATE

PROJECT SUNSHINE

• History of the group

• The proposition

• USP


• Group Structure


• Particulars of the development 1, 2 & 3

Contents

History of the group• Established in 1980 to provide maintenance services for air conditioning and refrigeration units also ventured into manufacturing of same in 1985.

• The group has been in the business of Bottled Water and Ice for the last 20 years.

• The Group owns land of 0.5 Acres in the prestigious Colombo 02 area on which they propose to have a mixed development project.

The proposition• The group needs to raise USD33.7mn :

• for the Mixed Development Property Project

• The group wishes to maintain minimum of 51% equity stake.

USP• Colombo is reaching almost 100% occupancy in commercial and office space.

• Location attracts the highest rental rate for commercial buildings in Colombo.

• One of the largest suppliers of air conditioning and specialized refrigeration appliances in Sri Lanka with over 300 Dealers island wide.

• One of the leading suppliers of Bottled Water and Ice with a well known brand name.

Promoters and Management• The promoters have over 30 years of experience in the air conditioning field and Bottled Water.

• The main promoter has extensive experience in banking and power and enjoys a very good business reputation.

Corporate Structure

Air Conditioning and Refrigeration

Property Development

Bottled Water and Tube Ice

Particulars of the Property Development (Square metres) Land Area : 2,281 Total Area to be constructed : 31,916 - Retail 1,198 - Office 15,391 - Residential 1,885 - Common Areas 13,440

The Project is Designed by one of the most reputed Sri Lankan Architects with extensive prestigious global projects completed

Project execution period : January 2015 – March 2017

Particulars of the Property Development 2• All regulatory approvals are expected by end of September

• 100% electricity backup by Diesel generators

• Adequate basement parking will be provided

• The Residences will be of luxury international standards and will be marketed to expats and non resident Sri Lankans

Particulars of the Property Development 3

• The Commercial and Office spaces will be leased and residential apartments will be sold

• The Property will be marketed by international and local property consultants

• Building maintenance will be up to international standards

Commercial Model• Total outlay on the building project : USD 34 mn

• Revenue from Advance Payments of lease rentals and installments for apartment purchases are expected to cover the outlay within 3 years

MANUFACTURING

PROJECT PISCES

Content

• The Proposition

• Description of the Project

• Company Overview

• Production Facility


• Financials

• Unique Selling Points


The Proposition 51% Stake for USD 19.2 Million

• The company is the market leader and Controls over 50% of the market Segment they operate (Production and sale of noodles, coffee, kurakkan flour, ulundu flour, and instant thosai mixture)

• A well reputed household brand in Sri Lanka (packaged coffee and noodles)

• Market leader for Powdered coffee.

• Over 6 decades of local experience in business

Description of the Project

Company Overview• Founded in 1943

• The first activities of the Company were the milling of rice, kurakkan and other grains. By 1952, the business expanded into various other fields including the milling of oil.

• In 1983 the Company was listed on the Colombo Stock Exchange and converted in to a Public Liability Company in 2007.

Company Overview

Production Facilities

The factory complex with all modern machinery including fully automated packaging plant has been expanded in a five acre site.

Production is mainly manual, however, international production standards are maintained.

Financials

Balance Sheet(USD 000’) 2012 2013 2014 2015E 2016E 2017E

Total Net Fixed assets 4,088 4,390 4,920 5,411 5,951 6,545

Total current assets 4,523 4,857 5,509 5,802 6,270 6,833

Total equity 6,752 7,206 7,845 8,513 9,300 10,227

Total Liabilities 1,858 2,041 2,585 2,700 2,921 3,151

Income Statement (USD 000’) 2012 2013 2014 2015E 2016E

Revenue 17,009 19,530 19,695 20,680 21,714

Profit Before Tax 1,141 1,051 1,289 1,448 1,520

Profit After Tax 773 731 927 1,034 1,086

Unique Selling Points Well known Local Brand name for Quality

Over 50% market share

Sound Financial Track record

Over 6 decades of experience in Business

Factory complex with all modern machinery

including fully automated packaging plant

Promoters and management

• The promoter is a well respected Sri Lankan Food Manufacturer

• Well experienced management with proven track record

AGRI

PROJECT SHINE

The Proposition


Company Overview

Production Plan

Financials

Marketing and Competition

Unique Selling Points

Project Promoters

Content

To raise USD 14mn Equity for an Organic Cotton

processing facility

USD 14 mn will be utilized to establish and complete

the production facilities in Sri Lanka and enable the

Company to gain full production capacity.

The Proposition


Processing of organic cotton, organic soy beans and other organic crops.

Business:

• Organic cotton : lint bales, seeds, Seed oil, seed oil

cakes.

- Threads ; Yarns ; Textiles

• From soy beans : oil, oil cake, pellets and others

Products:

Company Overview UK registered company with international management.

Has a well qualified and experienced Management and

execution team.

Is an Organic Agriculture technology and Textile Company.

Has agreements with a wide network of organic farmers for

acquiring raw materials.

Has agreements to acquire organic cotton production on

150,000 acres (Estimated raw cotton 94,000MT per

annum)

Company Overview At present the company has invested c. USD 2mn in the

project excluding the work performed by founders.

Company wishes to raise USD 14 mn from a Private

Placement and the remaining Requirement of USD 10mn

will be raised through an IPO in NASDAQ Dubai.

Production of Cotton & Soy Beans Year 1 Year 2 Year 3 Year 4 Year 5

Total Acreage contracted

34,000

50,000

70,000

100,000

100,000

Organic Cotton (M/T)

13,372

25,530

26,196

30,393

45,589

Organic Soy Beans (M/T)

22,258

44,516

66,775

Production Plan

Financials

Balance Sheet USD 000' Year 1 – 2015/16 Year 2 Year 3 Year 4 Year 5

Net Fixed Assets 22,850 20,899 19,180 18,004 17,316

Current Assets 5,271 18,366 34,920 67,082 138,734

Equity 27,281 38,030 51,865 82,616 153,580

Liabilities 840 1,235 1,235 2,470 2,470

Income Statement - USD 000’ Year 1 – 2015/16 Year 2 Year 3 Year 4 Year 5

Revenue

19,447

37,127

51,213

82,427

123,640

Operating Profit

2,651

12,427

16,633

33,027

74,240

Profit After Tax

1,482

10,749

14,324

29,751

70,964

Sales agreements have been reached with International

buyers for the first five years subject to achieving

quality specifications.

There is no significant competition from other Sri

Lankan Organic product produces

Marketing and Competition

Unique Selling Points An ideal location for growing organic cotton due to its near

perfect climatic conditions and exceptionally rich and healthy soil.

has established a close relationship with the ministry of Agriculture Department of Sri Lanka.

has created very strong relationships with farmers in the region. (As a result the company has in its control an area of 150,000 acres of highly fertile land from local farmers and the Sri Lankan government)

These lands are allowing the company to produce 21,000 metric tons which will be increased up to 94,000 metric tons annually.

Project Promoters

The promoter is a well respected organization in UK having significant network of professionals within the textile and agricultural industries

PLANTATION

PROJECT EMERALD

Content• About the company

• The proposition

• USP




About the company• Project Emerald is an exclusive Tea manufacturer with all its Tea plantations located in High Grown elevations.

• The company has 21 estates with a total land extent of 10,194 hectares( hectares : Acres)

• The company owns 44% of a 1.2MW generating mini hydro power plant.

Proposition• To source Strategic partner

USP• Some of the estates owned by the company fetch highest tea prices at tea auctions mostly above LKR1,000 compared to the average of LKR450.

• The company achieves a production yield of 1,400kgs per hectare which is in line with average industry standards.

Promoters and Management• Promoter is a listed company in Colombo Stock Exchange having business interest on Tea, Rubber, Palm Oil and Chemicals

Marketing and Competition• Colombo gains highest tea auction prices compared to other major tea markets such as India and Kenya.

• FAO projects world tea consumption to rise by 1.8% per annum as customers are increasingly becoming more health conscious.

Financial SummaryUSD 2012 2013 2014E 2015E 2016E

Total Equity 1.47mn 1.49mn 1.57mn 1.68mn 1.87mnTotal Assets 25.5mn 26.2mn 27.6mn 29.4mn 31.4mnBorrowings 3.9mn 3.5mn 3.7mn 3.9mn 4.1mnRevenue 23.2mn 24.4mn 24.7mn 25.7mn 27.1mnGross Profit -1.8mn 1.8mn 1.9mn 2.0mn 2.2mn

POWER & ENERGY

PROJECT RUBI


• The proposition

• USP




About the company• Project Rubi is a wind power project which commissioned in 2010

• Project Located in North-west of Sri Lanka

• Installed Capacity is 40 Mwwith 1.25Mw*8 WTGs –Suzlon technology

Proposition• Promoter is interested in divesting the project in order to focus on their core business activities.

USP• 14.68 hectares land obtained from the Government of Sri Lanka on a long term lease of 30 years and 1.22 hectares of privately owned freehold land

• Entrance to wind power generation is via acquisition

Promoters and Management• Promoter is an established diversified conglomerate in Sri Lanka

POWER & ENERGY

NATION LANKA FINANCE PLC


• The proposition

• USP




About the company• Nation Lanka Finance PLC (NLF) a Listed Company and a Finance Company regulated Central Bank of Sri Lanka with a rich heritage of 25 years.

• NLF has obtained its finance leasing license in 2005

• It has 25 branches island wide

• Cater with diversified portfolio including finance leasing, hire purchases, pawning, micro financing and personal loans

Proposition• Looking for strategic partnership/joint venture

USP• Company has B Stable out-look

• Restructured balance sheet after adequate provisioning and settlement of debtors

• Turned around company with aggressive plans to grow large

• Diversified portfolio

• The Government agency has discontinued issuing new license which NLF owns

• Its assets and deposits has YoY growth over 30%

• Experienced management team, established brand franchise and presently favorable capitalization profile

Promoters and Management• Promoters are Mr. Asanga Seneviratne and a well known business family.

Marketing and Competition• Focusing on finance leases

• Increased marketing and promotion to target motor vehicle segments

• Increasing number of products

• Priority has been given to micro financing which is a high yielding product

• 48 LFCs in the country along with 24 Banks

Investor Information• Market Cap USD 9mn

• Total Asset (as of 31.12.2014) USD52mn

• Total lending(as of 31.12.2014) USD32mn

• Total depoits (as of 31.12.2014) USD37mn

• NAVPS LKR1.18

• MPS LKR4.60

• 52 wk Range LKR4.50 - 9.70

Documents

TOURISM ANILANA. Table of Content Concept About the Company The proposition Promoters and Management USP Stock Market Data Group Structure Marketing and