Expolanka : Interim Financial Statements quarter ended 31st March 2022

EXPOLANKA HOLDINGS PLC INTERIM REPORT

TWELVE MONTHS ENDED 31ST MARCH 2022

CEO Message

Dear Shareholder,

It gives me great pleasure to share with you the Interim financial statements of Expolanka Holdings PLC for the quarter ended 31st March 2022. Your company was able to execute its strategic initiatives effectively whilst continuing to adapt to market conditions. Expolanka's agile and unified approach has resulted in the group posting record results to conclude the financial year.

The Group posted a Revenue of Rs. 242.BN (YoY + 220%), a Gross Profit of Rs. 46.0BN (YoY + 287%) and a Profit aſter tax of Rs. 31.03BN (YoY + 680%) for the quarter ending 31st March 2022.

The depreciaon of the Sri Lankan Rupee resulted in an exchange gain of Rs. 11.6BN whilst increasing the company's Net Asset Value by Rs 26.5BN on a YTD basis.

The above culminated with your company generang an Annual Revenue of Rs. 694BN (+217%) and a PAT of Rs. 72.7BN (+389%). Over 95% of this revenue has been derived from internaonal operaons, reflecng the global nature of your organizaon's business model and porolio.

The company has delivered an exceponal ROE of 95.9% as of March 2022, further indicang enhanced operang leverage and efficient asset ulizaon strategies adopted by the group.

Logiscs Sector

The sector connued to deliver strong results during the quarter, maintaining its focus on growing volumes, whilst delivering stability in yields. The quarter in review witnessed the logiscs sector delivering revenue of Rs. 240.9BN (+221% YoY), a gross profit of Rs. 45.8BN (+291% YoY) and a PAT of Rs. 29.9BN (+561% YoY).

The business connued its mul-pronged strategy focused on volume expansion, proacve procurement, and efficient operaonal capabilies.

The customer-centric approach adopted by the company connues to focus on growing wallet share across strategic customers, whilst gaining tracon with idenfied new customers. The diversified customer porolio serviced by the company includes a multude of leading global brands across a variety of key vercals.

The Air Freight product delivered significant volume during the quarter, with increased business from several strategic customers. EFL origins were able to augment the sales efforts by ensuring exceponal service delivery, capacity availability, and transparency.

The Ocean Freight product connued its strong momentum as a result of the increased emphasis on growing this porolio. Increased customer penetraon and a growing partner network enabled EFL to further strengthen and grow this product. The business was able to adopt several strategies to overcome challenges faced in the ocean freight business stemming from a shortage of containers, port congesons, and further backlogs caused by various other disrupons.

The proacve procurement strategy implemented by the business complemented the sales strategy adopted by the company to build capacity and stabilize margins. Strengthening exisng relaonships and building on new carrier relaonships took center stage for the procurement funcon as the organizaon connued to develop its capabilies. The business ulized several charters and freighters during the quarter, to meet the demand requirements of customers effecvely.

The macro-economic environment connues to remain dynamic. Demand supply imbalances largely remain, albeit not at the levels witnessed during the previous quarter. The freight rates are sll at elevated levels, despite gradual correcon witnessed during the quarter as a result of seasonal impacts.

Significant effort was dispensed in developing infrastructure, know-how, and capabilies across the EFL network. The global presence of EFL is a key competitive advantage in the company's business model. Origins such as Vietnam, China, India, Malaysia, Sri Lanka, Indonesia, and Thailand connued to demonstrate exceponal performance during the quarter, indicave of the investments made in these markets over several years and endorsing EFL's regional expansion strategy. quarter,

Whilst the North American trade businesses remained the key driver of business, the European and Intra-Asia businesses remained resilient with stable growth during the quarter.

Leisure Sector

The sector displayed resilience, reflecting a significant recovery in performance, generating a revenue of Rs. 280MN (YoY +133%) and a PAT of Rs. 37MN (YoY +124%) for the quarter. The decisions made to focus on the long term, streamline the business, expand service capabilies, and build a lean and efficient operaon, have contributed to this performance.

Investment Sector

The Investment Sector recorded a revenue of Rs. 817MN (YoY +100%), with the main contribuon from the export operaons. The porolio strategy of moving into high-margin products with less volatility is driving the growth of the sector. The IT business, too, is gaining ground with improved contributions to the overall performance of the group.

Social Consciousness & Governance

Your company places a significant emphasis on Environmental, Social, and Governance iniaves (E S G) and has adopted several proacve pracces & iniaves which are aligned with its overall strategic objecves.

Increased aenon was placed on the Global Goodness iniave, which leads the overall sustainability framework of the group. The business connued to drive its aenon towards implemenng programs across the UN sustainability goals, green logiscs, and women's empowerment iniaves.

Outlook

Although pandemic impacts are gradually easing as the world adopts the new normal, markets are expected to remain disrupted during the near term. The outlook for the company's key consumer market, North America, remains steady, whilst the European and Asian markets are expected to see a gradual recovery.

The pandemic has resulted in long-term changes to consumer behavior, evolving market conditions, and nimble supply chains. As a company, Expo will remain commied to meeng these challenges whilst moving forward to take advantage of opportunities with the single focus of creating value for all our stakeholders.

Hanif Yusoof Group CEO 27th April 2022

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Un Audited

Audited

As at	31.03.2022	31.03.2021
ASSETS
Non-current assets
Property, plant and equipment	5,750,794,286	3,413,329,344
Right-of-use assets	10,837,147,918	3,717,652,775
Intangible assets	3,835,125,688	1,039,413,373
Investment in an associate and joint ventures	392,222,671	288,160,986
Other financial assets	18,925,709	12,731,840
Deferred income tax assets	347,788,615	170,296,117
21,182,004,887	8,641,584,435
Current assets
Inventories	291,593,049	148,911,083
Trade and Other Receivables	213,042,785,924	49,089,439,347
Amounts due from related parties	63,724,751	134,311,547
Prepayments and other assets	14,258,827,284	1,869,186,630
Other financial assets	225,982,529	342,756,064
Income tax recoverable	4,096,562,968	347,370,073
Cash and cash equivalents	43,192,921,348	7,610,756,231
275,172,397,853	59,542,730,975
Total assets	296,354,402,740	68,184,315,410
EQUITY AND LIABILITIES
Stated capital	4,097,985,000	4,097,985,000
Reserves	27,986,114,800	1,614,493,928
Retained earnings	91,847,724,126	21,436,678,529
Equity attributable to equity holders of parent	123,931,823,926	27,149,157,457
Non-controlling interest	422,115,701	231,434,840
Total equity	124,353,939,627	27,380,592,297
Non-current liabilities
Financing and lease payables	15,134,573,848	5,532,778,654
Deferred income tax liabilities	18,414,550	20,928,710
Retirement benefit obligation	929,802,260	764,523,925
16,082,790,658	6,318,231,289
Current liabilities
Financing and lease payables	76,996,999,198	12,854,627,585
Trade and other payables	64,898,702,057	20,729,264,265
Amounts due to related parties	96,861,770	61,863,062
Income tax liabilities	13,925,109,430	839,736,912
155,917,672,455	34,485,491,824
Total equity and liabilities	296,354,402,740	68,184,315,410
Net asset per share	63.39	13.89

These nancial statements are in compliance with the requirements of the Companies Act No. 7 of 2007.

[SIGNED] …………………………………

Mushtaq Ahamed

Director - Group Finance

The Board of Directors is responsible for the preparation and presentation of these nancial statements. Signed for and on behalf of the Board by,

[SIGNED] …………………………………

Hanif Yusoof

Director

27th April 2022

…………………………………

[SIGNED]

Sanjay Kulatunga

Director

CONSOLIDATEDINCOMESTATEMENT

218,735,345,230 217.35

(180,304,428,192) 217.38

• 220.54 694,157,420,841

• 208.08 (572,249,262,480)

121,908,158,361 38,430,917,038 217.21

329,973,580 2,165.29

(20,497,654,151) 94.82

(1,432,647,597) 95.22

7,474,872,616 (39,932,916,532) (2,796,763,175)

(1,262,725,264) (367,260,544) 243.82

59,325,762 48.29

62,292,852 86.79

16,584,946,940 416.10

(1,704,928,193) 650.95

87,975,300 116,356,558 85,594,957,864 (12,803,236,519)

287.10

4,897.66

99.34

64.37

637.54

6.23

32.12

782.34

3,053.43

679.94 72,791,721,345 14,880,018,747 389.19

72,742,531,302 14,830,187,824

49,830,923 14,880,018,747 7.61

49,190,044 72,791,721,346 37.24

75,512,524,326 (63,606,226,148)

242,046,502,697 (195,957,391,019)

• 46,089,111,678 11,906,298,178

• 6,981,723,167 139,699,804

(7,549,579,372)

(266,898,316)

(77,144,832)

19,256,910

30,118,209

4,201,750,581

(181,281,195)

(15,049,629,262)

(438,702,249)

(568,970,619)

20,456,560

39,792,078

37,073,781,353

(5,716,575,304)

Revenue from contracts with customers Cost of sales

Gross profit

Other operating income and gains Administrative expenses

Selling and distribution expenses Finance cost

Finance income

Share of results of equity accounted investees (net of tax) Profit before tax

Income tax expense

• Profit for the period 31,357,206,049 4,020,469,386

  Attributable to:

• Equity holders of the parent 31,354,648,654 3,999,264,379

21,205,007 4,020,469,386 2.06

2,557,396 31,357,206,050 16.04

Non- Controlling InterestBasicearningspershare

389.19

Audited 2021

Un-Audited 2022

• 72,791,721,345 14,880,018,747

• 687,875,260 3,754.35

• 687,875,260 3,754.35

(424.22)

- (368.10)

3,842.55

538.27

(16,511,054)

-

(16,511,054)

671,364,206

26,513,111,689 26,513,111,689

(53,532,253)

9,266,355 (44,265,898)

26,468,845,791

• 99,260,567,136 15,551,382,953

• 99,069,886,275 15,487,584,996

63,797,957 15,551,382,953

190,680,861 99,260,567,136

CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME

679.94

3,576.18 3,576.18

(424.22)

- (368.10)

3,657.61

1,116.65

4,020,469,386

707,499,169 707,499,169

(16,511,054)

-

(16,511,054)

690,988,115

4,711,457,501

4,647,046,186 64,411,315

4,711,457,501

31,357,206,049

26,008,938,119 26,008,938,119

(53,532,253)

9,266,355 (44,265,898)

25,964,672,221

57,321,878,270

57,307,044,860 14,833,410

57,321,878,270

Profit for the period

Other comprehensive income to be reclassified to state-ment of profit or loss in subsequent periods

Net exchange differences on translation of foreign operations

Net other comprehensive income to be reclassified to state-ment of profit or loss in subsequent periods

Actuarial gains on defined benefit plans Income tax effect

Net other comprehensive income not to be reclassified to statement of profit or loss in subsequent periodsOther 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