Kee p ing our e ye on the ne x t l e v el

INTERIM CONDENSED FINANCIAL STATEMENTS

THREE MONTHS ENDED 30TH JUNE 2013

JOHN KEELLS HOLDINGS PLC

Ke e p ing our e ye on the ne x t l e v el

Chairmans Message Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flow

1 3 4 5 6

Consolidated Statement of Changes in Equity 8 Company Income Statement 9 Company Statement of Comprehensive Income 10 Company Statement of Financial Position 11 Company Statement of Cash Flow 12

Company Statement of Changes in Equity Operating Segment Information Notes to the Interim Condensed Financial Statements

13 14 16

Chairmans Message Financial Information

CHAIRMANS MESSAGE
Dear Stakeholder, The profit attributed to the equity holders for the first quarter of the financial year 2013/14 at Rs.1.59 billion reflects a 4 per cent decrease over the corresponding period in the previous financial year. The Group profit before tax (PBT) for the first quarter of the financial year 2013/14 at Rs.2.20 billion was a decrease of 8 per cent over the PBT of Rs.2.40 billion recorded in the corresponding period in the previous financial year. The revenue for the first quarter of the financial year 2013/14 of Rs.20.01 billion remained in line with the revenue recorded during the same period last year. The results of the first quarter of the financial year are a reflection of current macroeconomic challenges emanating from the decisive actions taken by the Government, including the implementation of cost based electricity pricing, over the past year to stabilise an over-heated economy and reduce the budget deficit. Whilst these macroeconomic factors may have a negative impact on the performance of the Group in the short term, we believe that your Group is well positioned to capitalise on the emerging growth opportunities because of its strong fundamentals and we, therefore, remain optimistic of the future. Single digit inflation, lower interest rates and the planned mega infrastructure developments are expected to translate into increased demand which will contribute positively to economic growth. Taking this view of the future, your Company has announced an integrated resort development, subject to the Project Company, Waterfront Properties (Private) Limited, receiving all the requisite approvals and your Company receiving shareholder approval, where necessary. The Project Company has entered into an agreement with the Board of Investment of Sri Lanka (BOI) as a precursor to facilitating the requisite approvals. Subsequent to the signing of the BOI agreement, the first Gazette as per the Strategic Development Projects Act was published by the Government on the 18th of July. The Waterfront Project is an integrated resort located at Glennie Street/Justice Akbar Mawatha and consists of multiple businesses including a luxury hotel, convention center, entertainment and gaming facilities, international standard shopping mall, luxury condominiums, serviced apartments and office space. The concept of integrated resorts has gained popularity, particularly in the South East Asian region. Sri Lankas proximity to these destinations and to key source markets strengthens its offering as an exciting, and emerging, leisure destination in South Asia. Transportation The Transportation industry group PBT of Rs.748 million in the first quarter of 2013/14 was a decrease of 22 per cent compared to the first quarter of the previous financial year [2012/13 Q1: Rs.957 million]. The decline in PBT was mainly on account of a lower contribution from the bunkering business as a result of lower volumes and reduced margins, a phenomenon experienced by the industry globally, whilst the ports, logistics and airline businesses also saw reductions on the back of changes in volumes and revenues. With the completion and commencement of operations of the South Terminal, the capacity constraints in the Port of Colombo will be overcome and the Port will be well geared to cater to increased domestic and transshipment volumes. Leisure The Leisure industry group PBT of Rs.461 million in the first quarter of 2013/14 was a decrease of 29 per cent over the first quarter of the previous financial year [2012/13 Q1: Rs.648 million], primarily as a result of the lower than expected performance of Sri Lanka Resorts with the new resort, Cinnamon Bey, in particular, still being established in the market. Additionally, there was an impact on lower interest rate bearing foreign currency denominated loans as a result of a depreciated Sri Lankan Rupee at the end of the quarter. Whilst overall tourism arrivals to the country continue to demonstrate growth, they have not translated into room nights in the star category hotels. This, we believe, is the result of a combination of the economic issues in Europe and the lack of a focused destination marketing and branding strategy. However, occupancy continued to be strong in the City Hotels where we increased our market share, while the Maldivian Resorts sector performed well benefitting from higher average room rates and increased occupancies. Property The Property industry group PBT of Rs.142 million in the first quarter of 2013/14 was an increase of 120 per cent compared to the corresponding period in the previous financial year [2012/13 Q1: Rs.65 million], mainly on account of the revenue recognition cycle of the OnThree20 development. The super-structure of the 37 storeyed towers of OnThree20 was completed during the quarter under review while the total number of apartments sold is in excess of 80 per cent. Construction of the Groups newest residential apartment development, 7th Sense on Gregorys Road, commenced during the quarter with over 50 per cent of the units sold as of-date. Consumer Foods and Retail The Consumer Foods and Retail industry group PBT of Rs.249 million in the first quarter of 2013/14 was a decrease of 36 per cent over the first quarter of the previous financial year [2012/13 Q1: Rs.393 million].
Interim Financial Statements l 1

PROGRESSIVE

CHAIRMANS MESSAGE

Whilst the soft drinks segment maintained its market share, consumer demand was impacted by the adverse weather conditions which prevailed in many parts of the country and the lower discretionary expenditure. Although the ice cream business lost volume due to the aforesaid reasons, it increased its market share through enhanced distribution. Keells Food Products consolidated its production by utilising the increased capacity in the new plant in Pannala. The Retail sector completed the roll out of its way forward strategy in its remaining retail outlets. Most of the outlets have witnessed growth during the quarter under review. Financial Services The Financial Services industry group PBT of Rs.259 million in the first quarter of 2013/14 was marginally higher compared to the corresponding period last year [2012/13 Q1: Rs.257 million]. The prevailing macro-economic conditions resulted in modest loan growth across the banking industry. The performance of the Bank in the first quarter was impacted by the planned non-recurring costs associated with the development of its positioning strategy which will be spread throughout this financial year. The profitability of the Insurance business was impacted by higher claim ratios in the non-life business compared to the previous year. The Stock Broking business increased its market share, although overall trading activity at the Colombo Stock Exchange was relatively low. Information Technology The Information Technology industry group PBT of Rs.65 million in the first quarter of 2013/14 was an increase over the corresponding period in the previous financial year [2012/13 Q1: Rs.6 million]. The improvement in performance was driven primarily by the Business Process Outsourcing (BPO) business on account of the expansion of its client base. The Office Automation business witnessed growth as it continued to expand its range of products. Other, including Plantation Services Other, comprising of Plantation Services and the Corporate Centre, recorded a PBT of Rs.275 million in the first quarter of 2013/14 [2012/13 Q1: Rs.72 million]. The performance was primarily attributed to an increase in net interest income and a decrease in exchange losses compared to the previous year. Sustainability Initiatives During the quarter, the Group took further steps in integrating sustainability within its business goals by broadening the scope of impact assessment in the areas of indirect energy consumption and other greenhouse gas emissions.
2 l JOHN KEELLS HOLDINGS PLC l www.keells.com

The Group continues to track key indicators covering carbon footprint, water usage, waste management, employee health & safety and staff training. The Groups overall carbon footprint at an estimated 18,657 MT is an increase of 8 per cent [2012/13 Q1: 17,234 MT], while the Groups water consumption at an estimated 414,934 cubic meters is an increase of 4 per cent [2012/13 Q1: 399,197 cubic meters] over the corresponding period last year, largely as a result of the expanded reporting scope. The number of occupational injuries in the Group during the first quarter increased to 63 [2012/13 Q1: 45]. The number of hours of training provided to staff was at approximately 12 hours per employee [2012/13 Q1: 9 hours]. Corporate Social Responsibility Out of 1,012 John Keells scholars of 2012/13, who became eligible to sit for the final examination under the John Keells English Language Scholarship Programme, a total of 996 children passed the final examination. The John Keells Foundation successfully coordinated a comprehensive industrial tour of the John Keells Group for a group of 94 undergraduates (and 04 faculty members) of the Faculty of Management Studies and Commerce of the University of Jaffna in June 2013. The tour was aimed at creating greater awareness of potential career opportunities. Under the John Keells HIV and AIDS Awareness Campaign, a total of 1,005 persons were educated via 14 sessions during the quarter, including corporate staff and members of the Sri Lanka Army. Under the John Keells Vision Project one eye camp was held in the first Quarter at the Navy Camp in Delft Island. Out of a total of 500 patients registered, 70 cataract patients were identified of whom 56 were operated. A total of 278 spectacles were also donated. Under the Village Adoption Programme, initial activities benefiting different community segments are underway in certain villages of the Mullaitivu District and Trincomalee District in the Northern and Eastern provinces of the country.

Susantha Ratnayake Chairman 26 July 2013

Chairmans Message Financial Information

CONSOLIDATED INCOME STATEMENT

For the three months ended 30th June Continuing operations Sale of goods Rendering of services Revenue Cost of sales Gross profit Other operating income Distribution expenses Administrative expenses Other operating expenses Results from operating activities Finance cost Finance income Net finance income Change in insurance contract liabilities Share of results of equity accounted investees Profit before tax Tax expense Profit for the period Attributable to : Equity holders of the parent Non-controlling interest 1,586,397 158,852 1,745,249 Earnings per share Basic Diluted Dividend per share Rs. 1.85 1.84 1.50 1,658,718 197,842 1,856,560 Rs. 1.95 1.94 1.50 (4) (20) (6) 7 6 11,321,732 8,690,308 20,012,040 (14,955,754) 5,056,286 340,222 (837,758) (2,354,227) (733,646) 1,470,877 (369,311) 1,322,957 953,646 (926,371) 701,570 2,199,722 (454,473) 1,745,249 11,673,741 8,339,141 20,012,882 (14,887,228) 5,125,654 408,508 (735,308) (2,467,344) (611,430) 1,720,080 (465,485) 930,900 465,415 (581,827) 792,917 2,396,585 (540,025) 1,856,560 (3) 4 (1) (17) 14 (5) 20 (14) (21) 42 105 59 (12) (8) (16) (6) Note 2013 2012 Change %

Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited.
Interim Financial Statements l 3

PROGRESSIVE

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the three months ended 30th June Note 2013 2012

Profit for the period Other comprehensive income Currency translation of foreign operations Revaluation of land and buildings Share of other comprehensive income of equity-accounted investees Net (loss) / gain on available-for-sale financial assets Tax on other comprehensive income Other comprehensive income for the period, net of tax Total comprehensive income for the period, net of tax Attributable to : Equity holders of the parent Non-controlling interest 7

1,745,249

1,856,560

255,915 (1,865) 194,633 38,457 487,140 2,232,389

280,110 316,106 (371,558) 224,658 2,081,218

2,029,704 202,685 2,232,389

1,827,700 253,518 2,081,218

Note :

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

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

Chairmans Message Financial Information

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at ASSETS Non-current assets Property, plant and equipment Lease rentals paid in advance Investment property Intangible assets Investments in associates Other non current financial assets Deferred tax assets Other non current assets Current assets Inventories Trade and other receivables Amounts due from related parties Other current assets Short term investments Cash in hand and at bank Total assets EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Stated capital Capital reserves Revenue reserves Other components of equity Non-controlling interest Total equity Non-current liabilities Insurance contract liabilities Borrowings Deferred tax liabilities Employee benefit liabilities Other deferred liabilities Other non-current liabilities Current liabilities Trade and other payables Amounts due to related parties Income tax payable Short term borrowings Current portion of borrowings Other current liabilities Bank overdrafts Total equity and liabilities Net assets per share Note : All values are in Rupees 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. 30.06.2013 31.03.2013

49,190,178 9,585,723 9,316,821 2,649,908 16,531,774 17,546,051 241,207 4,252,195 109,313,857 4,083,492 11,851,030 75,443 3,502,770 30,256,682 4,046,762 53,816,179 163,130,036 26,555,676 43,052,129 21,077,878 90,685,683 11,073,976 101,759,659 18,265,774 12,347,253 1,242,864 1,422,831 61,044 533,066 33,872,832 13,767,823 8,521 1,096,296 2,518,313 2,928,429 1,897,720 5,280,443 27,497,545 163,130,036 Rs. 105.73

49,272,979 9,513,671 9,294,936 2,689,514 15,724,361 18,816,693 212,227 3,575,749 109,100,130 3,998,900 12,775,046 207,455 2,895,900 26,586,054 3,554,804 50,018,159 159,118,289 26,480,396 42,704,203 20,634,571 89,819,170 11,366,240 101,185,410 17,388,494 11,857,764 1,222,210 1,385,072 50,228 530,075 32,433,843 14,608,263 15,280 981,013 1,853,767 3,048,936 1,635,534 3,356,243 25,499,036 159,118,289 Rs. 104.78

M J S Rajakariar Group Financial Controller The Board of Directors is responsible for the preparation and presentation of these financial statements.

S C Ratnayake Chairman 26 July 2013

J R F Peiris Group Finance Director Interim Financial Statements l 5

PROGRESSIVE

CONSOLIDATED STATEMENT OF CASH FLOW

For the three months ended 30th June CASH FLOWS FROM OPERATING ACTIVITIES Profit before working capital changes (Increase) / Decrease in inventories (Increase) / Decrease in trade and other receivables (Increase) / Decrease in other current assets (Increase) / Decrease in other non-current assets Increase / (Decrease) in trade and other payables Increase / (Decrease) in other current liabilities Increase / (Decrease) in insurance contract liabilities Cash generated from operations Finance income received Finance costs paid Dividend received Tax paid Gratuity paid Net cash flow from operating activities CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment Purchase of intangible assets Addition to investment property Acquisition of associates Proceeds from sale of property, plant and equipment and intangible assets Proceeds from sale of financial instruments - fair valued through profit or loss Purchase of financial instruments - fair valued through profit or loss (Purchase) / disposal of short term investments (net) (Purchase) / disposal of other non current financial assets (net) Net cash flow from / (used in) investing activities CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES Proceeds from issue of shares Direct cost on issue of shares Acquisition of non-controlling interest Dividend paid to equity holders of parent Dividend paid to shareholders with non-controlling interest Proceeds from long term borrowings Repayment of long term borrowings Proceeds from/(repayment of) other financial liabilities (net) Net cash flow from / (used in) financing activities NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING CASH AND CASH EQUIVALENTS AT THE END ANALYSIS OF CASH AND CASH EQUIVALENTS Favorable balances Short term investments Cash in hand and at bank Unfavorable balances Bank overdrafts Total cash and cash equivalents Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. Note 2013 2012

1,558,928 (84,592) 1,132,386 313,282 (676,446) (844,208) 255,802 877,280 2,532,432 1,241,994 (361,788) (1,184,895) (33,540) 2,194,203 (492,891) (19,672) (21,885) 6,351 180,760 (160,249) (85,668) 1,309,099 715,845 75,280 (707) (1,286,460) (446,253) 1,447,174 (1,271,362) 664,546 (817,782) 2,092,266 16,860,241 18,952,507

2,315,541 1,347,793 438,737 229,688 (662,910) (471,994) 14,136 598,136 3,809,127 924,957 (232,643) 131,189 (299,624) (14,681) 4,318,325 (1,057,500) (3,238) (98,872) (28,390) 12,841 52,590 (84,461) (1,209,570) 693,367 (1,723,233) 721,579 (516) (1,275,977) (624,516) 193,898 (875,654) (929,057) (2,790,243) (195,151) 21,518,594 21,323,443

20,186,188 4,046,762 (5,280,443) 18,952,507

20,932,609 3,095,993 (2,705,159) 21,323,443

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

Chairmans Message Financial Information

For the three months ended 30th June A Profit before working capital changes Profit before tax Adjustments for: Finance income Finance cost Share of results of equity accounted investees Profit on sale of non-current investments Depreciation of property, plant and equipment Provision for impairment losses (Profit) / loss on sale of property, plant and equipment and intangible assets Amortisation of lease rentals paid in advance Amortisation of intangible assets Amortisation of other deferred liabilities Gratuity provision and related costs Unrealised (gain) / loss on foreign exchange (net)

2013

2012

2,199,722 (1,322,957) 369,311 (701,570) 11,461 611,222 11,600 165,835 61,946 (129) 72,032 80,455 1,558,928

2,396,585 (930,900) 465,485 (792,917) 523,092 99,769 (11,233) 170,826 62,293 (128) 56,609 276,060 2,315,541

Note :

All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. Interim Financial Statements l 7

PROGRESSIVE

Attributable to equity holders of parent Stated Revaluation Foreign currency Other Available for capital reserve translation capital sale reserve reserve reserves Revenue reserves Total Non-controlling interest Total Equity
17,780,432 (1,865) (1,865) 17,778,567 9,487,794 9,487,794 3,525,264 428,365 (45,819) 537,788 (368,806) 537,788 (368,806) 1,658,718 1,658,718 (1,275,977) 48,151 839 33,524,281 2,987,476 428,365 322,987 33,092,550 3,136,266 163,045 43,052,129 48,696 48,696 90,685,683 71,429,700 1,658,718 168,982 1,827,700 721,579 (1,275,977) 48,151 839 72,751,992 (1,286,460) (1,286,460) (707) (707) 75,280 406,409 38,763 1,586,397 2,029,704 202,685 (494,949) 11,073,976 8,884,252 197,842 55,676 253,518 (672,667) (1,355) 8,463,748 406,409 38,763 443,307 43,833 1,586,397 1,586,397 158,852 2,729,857 124,282 42,704,203 89,819,170 11,366,240 101,185,410 1,745,249 487,140 2,232,389 75,280 (707) (1,286,460) (446,253) 101,759,659 80,313,952 1,856,560 224,658 2,081,218 721,579 (1,275,977) (624,516) (516) 81,215,740

As at 1 April 2013 -

26,480,396

Profit for the period

Other comprehensive income

Total comprehensive income

Exercise of share options

75,280

Direct cost on issue of shares

Final dividend paid - 2012/13

Subsidiary dividend to non-controlling interest

8 l JOHN KEELLS HOLDINGS PLC l www.keells.com -

As at 30 June 2013

26,555,676

As at 1 April 2012

25,110,528

Profit for the period

Other comprehensive income

Total comprehensive income

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Exercise of share options

721,579

Final dividend paid - 2011/12

Subsidiary dividend to non-controlling interest

Acquisition, disposal and changes in

non-controlling interest

As at 30 June 2012

25,832,107

Note :

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

Chairmans Message Financial Information

COMPANY INCOME STATEMENT

For the three months ended 30th June Continuing operations Rendering of services Revenue Cost of sales Gross profit Dividend income Other operating income Administrative expenses Other operating expenses Results from operating activities Finance cost Finance income Net finance income Profit before tax Tax expense Profit for the period 7 181,687 181,687 (99,008) 82,679 2,191,598 2,350 (295,253) (9,574) 1,971,800 (90,959) 384,722 293,763 2,265,563 (32,532) 2,233,031 Rs. Dividend per share 1.50 134,905 134,905 (85,378) 49,527 2,360,046 4,928 (292,176) (9,092) 2,113,233 (151,937) 281,732 129,795 2,243,028 (4,752) 2,238,276 Rs. 1.50 35 35 16 67 (7) (52) 1 5 (7) (40) 37 126 1 585 Note 2013 2012 Change %

Note :

All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. Interim Financial Statements l 9

PROGRESSIVE

COMPANY STATEMENT OF COMPREHENSIVE INCOME

For the three months ended 30th June Note 2013 2012

Profit for the period Other comprehensive income Net (loss)/gain on available-for-sale financial assets Tax on other comprehensive income Other comprehensive income for the period, net of tax Total comprehensive income for the period, net of tax 7

2,233,031 43,481 43,481 2,276,512

2,238,276 (314,681) (314,681) 1,923,595

Note :

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

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

Chairmans Message Financial Information

COMPANY STATEMENT OF FINANCIAL POSITION

As at ASSETS Non-current assets Property, plant and equipment Intangible assets Investments in subsidiaries and joint ventures Investments in associates Other non current financial assets Other non current assets Current assets Trade and other receivables Amounts due from related parties Other current assets Short term investments Cash in hand and at bank Total assets EQUITY AND LIABILITIES Stated capital Revenue reserves Other components of equity Total equity Non-current liabilities Borrowings Employee benefit liabilities Current liabilities Trade and other payables Amounts due to related parties Current portion of borrowings Other current liabilities Bank overdrafts Total equity and liabilities Net assets per share Note : All values are in Rupees 000s, unless otherwise stated. The above figures are not audited. 30.06.2013 31.03.2013

70,038 82,143 26,522,694 9,821,364 1,774,566 10,310 38,281,115 1,057,226 557,072 388,063 13,624,488 586,128 16,212,977 54,494,092 26,555,676 21,168,327 126,938 47,850,941

75,309 74,004 26,641,307 9,821,364 1,710,653 10,310 38,332,947 994,862 518,084 384,966 12,551,540 63,159 14,512,611 52,845,558 26,480,396 20,221,756 83,457 46,785,609

3,212,279 137,753 3,350,032 241,213 12,679 1,308,636 8,102 1,722,489 3,293,119 54,494,092 Rs. 55.79

3,752,621 134,075 3,886,696 229,990 13,156 1,314,424 105,478 510,205 2,173,253 52,845,558 Rs. 54.58

I certify that the financial statements comply with the requirements of the Companies Act No.7 of 2007.

M J S Rajakariar Group Financial Controller The Board of Directors is responsible for the preparation and presentation of these financial statements.

S C Ratnayake Chairman 26 July 2013

J R F Peiris Group Finance Director

Interim Financial Statements l 11

PROGRESSIVE

COMPANY STATEMENT OF CASH FLOW

For the three months ended 30th June CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Finance income Dividend income Finance cost Depreciation of property, plant and equipment Profit on sale of property, plant and equipment Amortisation of intangible assets Provision for impairment losses Gratuity provision and related costs Profit before working capital changes (Increase) / Decrease in trade and other receivables (Increase) / Decrease in other current assets Increase / (Decrease) in trade and other payables Increase / (Decrease) in other current liabilities Cash generated from operations Finance income received Finance expenses paid Dividend received Tax paid Gratuity paid Net cash flow from operating activities CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment Purchase of intangible assets Increase in interest in subsidiaries Increase in interest in associates Proceeds from sale of property, plant and equipment (Purchase)/disposal of short term investments (net) (Purchase)/disposal of other non current financial assets (net) Net cash flow from/(used in) investing activities CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES Proceeds from issue of shares Dividend paid Repayment of long term borrowings Net cash flow from / (used in) financing activities NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING CASH AND CASH EQUIVALENTS AT THE END ANALYSIS OF CASH & CASH EQUIVALENTS Favorable balances Short term investments Cash in hand and at bank Unfavorable balances Bank overdrafts Total cash and cash equivalents Note : All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. 2013 2012

2,265,563 (384,722) (2,191,598) 90,959 6,041 (4) 5,961 118,613 6,198 (82,989) (36,885) (2,165) 10,747 (97,376) (208,668) 384,722 (87,552) 2,218,061 (33,461) (2,519) 2,270,583 (769) (14,099) 4 4,469,699 (20,431) 4,434,404 75,280 (1,286,460) (640,475) (1,851,655) 4,853,332 5,433,342 10,286,674

2,243,028 (281,732) (2,360,046) 151,937 6,520 (2,696) 4,376 99,769 5,686 (133,158) 559,119 (85,377) (43,993) (2,127) 294,464 255,981 (64,430) 2,369,445 (12,946) (2,518) 2,839,996 (804) (15,526) (28,389) 6,696 (1,510,948) 3,946 (1,545,025) 721,579 (1,275,977) (664,176) (1,218,574) 76,397 8,919,099 8,995,496

11,423,035 586,128 12,009,163 (1,722,489) 10,286,674

8,983,135 61,594 9,044,729 (49,233) 8,995,496

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

Chairmans Message Financial Information

COMPANY STATEMENT OF CHANGES IN EQUITY

Stated capital Available for sale reserve Revenue reserves Total Equity

As at 1 April 2013 Profit for the period Other comprehensive income Total comprehensive income Exercise of share option Final dividend paid - 2012/13 As at 30 June 2013 As at 1 April 2012 Profit for the period Other comprehensive income Total comprehensive income Exercise of share option Final dividend paid - 2010/11 As at 30 June 2012

26,480,396 75,280 26,555,676 25,110,528 721,579 25,832,107

83,457 43,481 43,481 126,938 229,595 (314,681) (314,681) (85,086)

20,221,756 2,233,031 2,233,031 (1,286,460) 21,168,327 15,754,217 2,238,276 2,238,276 (1,275,977) 16,716,516

46,785,609 2,233,031 43,481 2,276,512 75,280 (1,286,460) 47,850,941 41,094,340 2,238,276 (314,681) 1,923,595 721,579 (1,275,977) 42,463,537

Note :

All values are in Rupees 000s, unless otherwise stated. Figures in brackets indicate deductions. The above figures are not audited. Interim Financial Statements l 13

PROGRESSIVE

OPERATING SEGMENT INFORMATION

BUSINESS SEGMENTS The following tables present revenue, profit information and segment assets regarding the Groups operating segments. Transportation For the three months ended 30th June 2013 2012 2013 2012 2013 2012 2013 2012 Leisure Property Consumer Foods & Retail

External revenue Inter segment revenue Total Segment revenue Eliminations of inter segment revenue Net Revenue Segment result Finance cost Finance income Share of results of equity accounted investees Eliminations / adjustments Profit / (loss) before tax Tax expense Profit / (loss) for the period Segment assets Investments in associates Deferred tax assets Goodwill Other current assets Eliminations / adjustments Total Assets Purchase and construction of PPE Addition to IA Depreciation of PPE Amortisation / impairment of IA Amortisation of LRPA Gratuity provision and related costs

4,128,503 102,988 4,231,491

5,307,450 92,194 5,399,644

4,116,630 35,438 4,152,068

3,912,911 11,649 3,924,560

672,752 79,234 751,986

611,541 68,528 680,069

6,154,518 91,660 6,246,178

5,986,843 14,997 6,001,840

229,709 (12,960) 41,204 490,324 (604) 747,673 (44,022) 703,651 6,586,187

337,965 (23,906) 52,417 590,949 (588) 956,837 (71,189) 885,648

473,645 (153,437) 141,889 (1,100) 460,997 (66,847) 394,150

683,531 (103,570) 68,101 648,062 (45,006) 603,056

127,376 (17,176) 35,780 (3,518) 142,462 (17,150) 125,312

30,809 (2,674) 38,978 (2,427) 64,686 (22,617) 42,069

251,964 (42,734) 43,104 (3,000) 249,334 (64,679) 184,655

408,164 (20,445) 7,815 (3,000) 392,534 (128,172) 264,362

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

6,580 19,407 1,207 4,061

6,593 23,404 2,950 5,210

249,364 320,733 162,623 21,821

703,708 252,499 170,641 16,901

13,410 5,833 300

1,558 2,535 300

126,224 2,268 168,071 3,974 24,171

256,505 623 146,391 3,046 22,547

Note :

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

PPE (Property, plant and equipment), IA (Intangible assets), LRPA (Lease rentals paid in advance) 14 l JOHN KEELLS HOLDINGS PLC l www.keells.com

Chairmans Message Financial Information

Financial Services 2013 2012

Information Technology 2013 2012

Others 2013 2012

Group Total 2013 2012

2,229,523 26,998 2,256,521

1,997,392 24,449 2,021,841

1,879,275 75,117 1,954,392

1,431,946 72,736 1,504,682

830,839 141,510 972,349

764,799 144,713 909,512

20,012,040 552,945 20,564,985

20,012,882 429,266 20,442,148

(552,945) 20,012,040 31,579 (1) 27,435 200,480 259,493 (65,933) 193,560 174,409 (145,338) 12,819 215,338 257,228 (85,027) 172,201 8,514 (20,247) 3,496 72,820 64,583 (11,585) 52,998 3,641,604 29,581 (15,492) 1,537 (9,979) 5,647 (5,385) 262 3,283,744 (108,237) (122,756) 389,197 10,766 106,210 275,180 (184,257) 90,923 24,200,021 (24,167) (154,060) 269,000 (3,391) (15,791) 71,591 (182,629) (111,038) 19,860,912 1,014,550 (369,311) 682,105 701,570 170,808 2,199,722 (454,473) 1,745,249 141,912,037 16,531,774 241,207 950,884 3,502,770 (8,636) 163,130,036

(429,266) 20,012,882 1,640,292 (465,485) 450,667 792,917 (21,806) 2,396,585 (540,025) 1,856,560 128,587,465 16,640,319 163,894 717,900 1,708,244 (15,201,104) 132,616,718

28,465,997 23,378,562

44,406 37,841 47,066 8,132

55,776 36,019 46,854 7,806

25,452 3,305 29,202 3,738 3,571

14,775 2,615 32,635 5,067 3,230

27,455 14,099 30,135 5,961 3,212 9,976

18,585 29,609 4,376 185 9,774

492,891 19,672 611,222 61,946 165,835 72,032

1,057,500 3,238 523,092 62,293 170,826 65,768

Interim Financial Statements l 15

PROGRESSIVE

NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

1 CORPORATE INFORMATION John Keells Holdings PLC. is a public limited company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. Ordinary shares 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 STATEMENTS The financial statements for the period ended 30 June 2013, 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 STATEMENTS The interim condensed financial statements of the Group and the Company for the 3 months ended 30 June 2013 were authorised for issue by the Board of Directors on 26 July 2013. 4 BASIS OF PREPARATION The interim condensed financial statements have been prepared in compliance with Sri Lanka Accounting Standard LKAS 34 Interim Financial Reporting. These interim condensed financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2013. The presentation and classification of the financial statements of the previous year have been amended, where relevant, for better presentation and to be comparable with those of the current year. The interim condensed financial statements are presented in Sri Lankan Rupees and all values are rounded to the nearest thousand except when otherwise indicated. 5 OPERATING SEGMENTS For management purposes, the Group is organised into business units based on their products and services and has seven reportable operating segments as follows: Transportation Property Financial Services Others 6 CHANGE IN LIFE INSURANCE CONTRACT LIABILITIES The results of Union Assurance PLCs life business segment is consolidated line by line into the Groups consolidated income statement. The change in life 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 For the three months ended 30th June Income statement Current income tax Deferred tax Other comprehensive Income Deferred tax 454,473 540,025 32,532 4,752 463,204 (8,731) 547,584 (7,559) 32,532 4,752 2013 2012 Company 2013 2012 Leisure Consumer Foods & Retail Information Technology

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

Chairmans Message Financial Information

RELATED PARTY TRANSACTIONS Group For the three months ended 30th June Transactions with related parties Subsidiaries (Purchase) / sale of goods (Receiving) / rendering of services (Purchase) / sale of property plant & equipment Loans given Interest received / (paid) Rent received / (paid) Guarantees received / (paid) Joint Ventures (Receiving) / rendering of services Associates (Purchase) / sale of goods (Receiving) / rendering of services Interest received / (paid) Loans taken Leases taken Key management personnel (KMP) (Receiving) / rendering of services Close family members of KMP (Receiving) / rendering of services Companies controlled / jointly controlled / significantly Influenced by KMP and their close family members (Purchase) / sale of goods Post employment benefit plan Contributions to the provident fund 87,378 49,204 19,121 10,331 1,903 10,527 43,897 6,924 111,477 900 19,386 71,489 15,628 8,513 996 155,381 (29,012) (287) 120,607 45,000 15,791 (12,819) 2013 2012 Company 2013 2012

Interim Financial Statements l 17

PROGRESSIVE

NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

9 9.1

SHARE INFORMATION Public share holdings The percentage of shares held by the public as at 30 June 2013 was 98.45 % (31 March 2013 - 88.36 %).

9.2

Directors share holdings The number of shares held by the Board of Directors are as follows: As at S C Ratnayake Chairman/CEO A D Gunewardene Deputy Chairman J R F Peiris E F G Amerasinghe T Das S S Tiruchelvam I Coomaraswamy A R Gunasekara M A Omar 30-06-2013 5,299,066 6,481,720 1,371,392 5,514 Nil 1,300 Nil 107,866 Nil 31-3-2013 5,299,066 6,481,720 1,371,392 5,514 Nil 1,300 Nil 107,866 Nil

9.3

Twenty largest shareholders of the Company are as follows: As at 30-06-2013 Number of shares 1 2 3 4 5 6 7 8 9 Mr S E Captain Broga Hill Investments Limited Janus Overseas Fund Paints & General Industries Limited Deutsche Bank AG London Aberdeen Global-Asian Smaller Companies Fund Melstacorp (Private) Limited Aberdeen Global-Emerging Markets Smaller companies fund Estate of Mr A A N De Fonseka 84,774,813 84,681,555 75,942,233 50,007,835 33,628,953 32,930,435 31,499,883 22,990,207 19,952,358 19,047,737 18,303,333 13,531,656 13,141,807 11,365,142 10,991,944 10,936,664 9,556,504 9,074,229 7,751,552 7,530,938 % shares 9.9% 9.9% 8.9% 5.8% 3.9% 3.8% 3.7% 2.7% 2.3% 2.2% 2.1% 1.6% 1.5% 1.3% 1.3% 1.3% 1.1% 1.1% 0.9% 0.9% 31-3-2013 Number of % 82,431,062 74,591,759 86,536,133 49,086,579 32,930,641 26,563,207 31,499,883 30,850,435 19,952,358 19,047,737 18,303,333 13,172,166 13,141,807 11,518,889 11,535,763 10,936,664 9,556,504 9,074,229 7,751,552 7,325,938 % shares 9.6% 8.7% 10.1% 5.7% 3.8% 3.1% 3.7% 3.6% 2.3% 2.2% 2.1% 1.5% 1.5% 1.3% 1.3% 1.3% 1.1% 1.1% 0.9% 0.9%

10 Aberdeen Global Asia Pacific Equity Fund 11 Janus Aspen series Overseas Portfolio Fund 12 Schroder International Selection Fund 13 Mr K Balendra 14 J P Morgan Clearing Corporation 15 Rubber Investment Trust Limited A/C no.1 16 London- Edinburgh Dragon Trust PLC 17 BBH-Matthews International Funds 18 Aberdeen Asia Pacific Fund 19 Mrs D Kumaranayagam 20 Aberdeen Institutional Commingled Funds, LLC

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

Chairmans Message Financial Information

9.4

Stated capital Stated capital is represented by number of shares in issue as given below: As at Ordinary shares Global depository receipts 30-06-2013 856,577,088 1,122,069 31-03-2013 856,112,828 1,129,677

9.5

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 June 2013.

9.6

Market price per share For the quarter ended 30th June 2013 Rs. Highest Lowest Last traded 299.80 243.50 251.50 2012 Rs. 249.70 219.00 247.00

10

DIVIDENDS PAID A final dividend of Rs.1.50 per share for the financial year ended 31 March 2013 was paid on 17 June 2013.

11

DISPOSAL OF ASSOCIATE In June 2013, as per sales and purchase agreement the Group disposed of its interest in one of its associates, namely NDO India (Pvt) Ltd. The resultant loss of Rs.11mn has been reflected in the Consolidated Income Statement.

12

CONTINGENCIES, CAPITAL AND OTHER COMMITMENTS There 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 2013.

13

EVENTS AFTER THE REPORTING PERIOD John Keells holdings PLC. (JKH) has proposed to the Government of Sri Lanka a Project, valued in excess of USD 650mn, involving the developing, owning, managing, operating, selling, leasing and renting a luxury multi/mixed use Integrated Resort (the Project) in the land owned and occupied by its subsidiaries Ceylon Cold Stores PLC (CCS), John Keells PLC (JKL), John Keells Properties (Pvt) Ltd (JKP) and Waterfront Properties (Pvt) Ltd (WPL) in Colombo 2. John Keells Holdings PLC together with its subsidiaries CCS, JKL and JKP will be majority shareholders in the Project Company, WPL. The Board of Directors has approved the Project subject to the Company receiving all the necessary approvals to the satisfaction of the Board including shareholder approval as necessary. The Project Company has already entered into an agreement with the Board of Investment of Sri Lanka to facilitate the requisite approvals and a Gazette published on the 18 July 2013 under the Strategic Development Projects Act has made available tax, duty and other concessions to the Project. The Board has authorized the Company to call for an EGM to seek shareholder approval of the Investment as a Major Transaction under the Companies Act of 2007.

Interim Financial Statements l 19

PROGRESSIVE

NOTES

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

Corporate Information
Name of Company John Keells Holdings PLC Legal Form Public Limited Liability Company Incorporated in Sri Lanka in 1979 Ordinary Shares listed on the Colombo Stock Exchange GDRs listed on the Luxembourg Stock Exchange Company Registration No. PQ 14 Directors S C Ratnayake Chairman A D Gunewardene Deputy Chairman J R F Peiris E F G Amerasinghe I Coomaraswamy T Das A R Gunasekara M A Omar S S Tiruchelvam Senior Independent Director E F G Amerasinghe Audit Committee A R Gunasekara Chairman E F G Amerasinghe I Coomaraswamy Human Resources and Compensation Committee E F G Amerasinghe Chairman I Coomaraswamy A R Gunasekara S S Tiruchelvam Nominations Committee T Das Chairman S S Tiruchelvam S C Ratnayake Bankers Bank of Ceylon Citibank N.A Commercial Bank Deutsche Bank A.G DFCC Bank DFCC Vardhana Bank Hatton National Bank Hongkong & Shanghai Banking Corporation Muslim Commercial Bank Nations Trust Bank National Savings Bank Pan Asia Banking Corporation Peoples Bank Sampath Bank Seylan Bank Standard Chartered Bank Depository for GDRs Citibank N.A New York Registered office of the Company 130 Glennie Street Colombo 2, Sri Lanka Internet: www.keells.com Email: jkh@keells.com Secretaries and Registrars Keells Consultants (Pvt) Limited 130 Glennie Street Colombo 2, Sri Lanka Telephone: +94 11 230 6245 Facsimile: +94 11 243 9037 Investor Relations John Keells Holdings PLC 130 Glennie Street Colombo 2, Sri Lanka Telephone: +94 11 230 6165 +94 11 230 6000 Facsimile: +94 11 230 6160 Email: investor.relations@keells.com Group Sustainability and Enterprise Risk Management John Keells Holdings PLC 130 Glennie Street Colombo 2, Sri Lanka Telephone: +94 11 230 6182 Facsimile: +94 11 230 6249 Email: sustainability@keells.com Contact for Media Corporate Communications Division John Keells Holdings PLC 130 Glennie Street Colombo 2, Sri Lanka Telephone: +94 11 230 6191 Email: jkh@keells.com Auditors Ernst & Young Chartered Accountants P.O. Box 101 Colombo, Sri Lanka

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