Inox Leisure Limited
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INOX LEISURE LIMITED QUARTERLY INVESTOR UPDATE Q1 FY16 1 DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Inox Leisure Limited (“ILL” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future state of affairs, results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of ILL about the business, industry and markets in which ILL operates. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond ILL’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of ILL. In particular, such statements should not be regarded as a projection of future performance of ILL. It should be noted that the actual performance or achievements of ILL may vary significantly from such statements. 2 DISCUSSION SUMMARY Q1 FY16 RESULT HIGHLIGHTS RESULT ANALYSIS NEW PROPERTIES OPENED PAN INDIA PRESENCE NEW SCREENS PIPELINE CONTENT PIPELINE SHAREHOLDING STRUCTURE FINANCIAL SUMMARY ANNEXURE Note: Q1 FY16 & FY15 figures are based on consolidated financials including Satyam Cineplexes Limited which became wholly owned subsidiary of the Company on 8th August 2014. 3 Q1 FY16 – RESULTS HIGHLIGHTS Q1 FY16 YoY ANALYSIS REVENUES* EBITDA ** & EBITDA MARGIN PAT & PAT MARGIN 18.8% 7.2% 3,486.8 12.6% 655.7 2.0% 2,323.8 252.6 293.6 50 % 123 % 452 % 45.8 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 EBIDTA EBIDTA % PAT PAT % Q1 FY16 Revenues of Rs 3,486.8 mn 34.3% of Full Year FY15 Revenues. Q1 FY16 EBITDA of Rs 655.7 mn 53.4% of Full Year FY15 EBITDA. Q1 FY16 PAT of Rs 252.6 mn 126.0% of Full Year FY15 PAT. Note: * Revenue from Operations, ** EBIDTA excluding Other Income In Rs. Mn 4 Q1 FY16 – REVENUE ANALYSIS Q1 FY16 YoY ANALYSIS REVENUES* BREAKUP 3,486.8 147.0 207.2 8 % Q1 FY16 has been a strong quarter 2,323.8 738.9 136.4 39 % 149.6 driven by good content quality – 472.1 57 % 2,393.8 . Highest GBOC in any quarter. 1,565.6 53 % . Highest Footfalls in any quarter. Q1 FY15 Q1 FY16 . Highest Occupancy in any quarter. Gross Box Office Food & Beverages Advertising Other Operating Revenues % Share Q1 FY15 Q1 FY16 . Highest SPH in any quarter. Gross Box Office 67.4% 68.7% Food & Beverages 20.3% 21.2% Advertising 6.4% 5.9% Other Operating Revenues 5.9% 4.2% Note: * Revenue from Operations In Rs. Mn 5 Q1 FY16 – TOP 5 FILMS Tanu Weds Piku Motion ABCD Any Body Avengers – Q1 FY16 Fast and Furious 7 Manu Returns Se Hi Emotion Can Dance 2 Age Of Ultron GBOC (Rs Mn) 311.3 218.0 189.3 184.5 182.2 Footfalls (Mn) 1.9 1.3 1.1 1.0 1.0 6 Q1 FY16 – KEY OPERATIONAL METRICS FOOTFALLS & OCCUPANCY RATE FOOTFALLS & OCCUPANCY RATE OF COMPARABLE PROPERTIES 33% 33% 26% 26% 14.5 Higher Footfalls and 12.3 9.9 9.9 Occupancy driven by Superior 46 % Movie Content Quality 24 % Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Footfalls (Mn) Occupancy (%) Footfalls (Mn) Occupancy (%) Footfalls with Management Properties – Q1 FY16: 15 mn AVERAGE TICKET PRICE (ATP) AVERAGE TICKET PRICE (ATP) OF COMPARABLE PROPERTIES 165 164 159 159 Sustained Growth in Average Ticket Price 4 % 3 % Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 ATP (Rs) ATP (Rs) All the above charts exclude managed properties. 7 Q1 FY16 – KEY OPERATIONAL METRICS FOOD & BEVERAGES – SPEND PER HEAD (SPH) FOOD & BEVERAGES – CONTRIBUTION (%) 59 56 76.0% 78.0% Higher F&B Spend Strong driven by F&B Greater Food Variety Profitability 5% and Efficient Service Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 SPH (Rs) F & B Contribution (%) ADVERTISING REVENUES PER OPERATING SCREEN OTHER OPERATING REVENUES PER OPERATING SCREEN 0.58 Strong Pickup 0.51 0.47 in Advertising 0.41 Revenues 13 % 13 % Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Advertising Revenues Other Operating Revenues Note: For FY15 number of screens are 355 (excluding management) In Rs. Mn 8 Q1 FY16 – KEY OPERATIONAL METRICS ENTERTAINMENT TAX - % OF GBOC FILM DISTRIBUTOR SHARE (%) 19.3% 18.2% 43.8% 42.3% 35.9% 34.1% Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 E-Tax (%) Distributor Share on NBOC Distributor Share on GBOC Entertainment Average Residual OTHER OVERHEADS PER OPERATING SCREEN (RS MN) Properties Screens Seats Tax Period 3.7 3.8 Full Tax 82 318 84,104 1.0 1.1 Exempted 10 42 10,589 2 years 1.2 1.1 1.0 1.1 0.5 0.5 Q1 FY15 Q1 FY16 Employee Benefits Property Rent & Conducting Fees NBOC (Net Box Office Collections) , GBOC (Gross Box Office Collections) CAM, Power & Fuel, R&M Other Overheads 9 Q1 FY16 – NEW PROPERTIES OPENED ADDITIONS IN Q1 FY16 PROPERTIES 1 SCREENS 5 SEATS 647 Pune Bund Vadodara Garden (in Reliance Mall on existing property) 21st June 2015 12th June 2015 with 3 screens with 2 screens and 581 seats with 66 seats 10 PAN INDIA PRESENCE 17 PUNJAB | 1 Property | 6 Screens UTTAR PRADESH | 3 Properties | 13 Screens States DELHI | 4 Properties | 13 Screens WEST BENGAL | 13 Properties | 52 Screens HARYANA | 6 Properties | 19 Screens 52 RAJASTHAN | 10 Properties | 31 Screens Cities MADHYA PRADESH | 4 Properties | 16 Screens 97 GUJARAT | 7 Properties | 28 Screens JHARKHAND | 1 Property | 4 Screens Locations ODISHA | 1 Property | 3 Screens MAHARASHTRA | 21 Properties | 87 Screens CHHATTISGARH | 2 Properties | 8 Screens 377 GOA | 2 Property | 8 Screens TELANGANA | 2 Properties | 11 Screens Screens KARNATAKA |10 Properties | 38 Screens ANDHRA PRADESH | 7 Properties | 26 Screens TAMIL NADU | 3 Properties | 14 Screens 99,429 Seats Includes 5 management properties with 17 screens and 4,736 seats 11 NEW SCREENS PIPELINE RACING TOWARDS 557 SCREENS FY16 – PIPELINE Locations Screens Seats Jorhat (Management) 2 274 Bhiwadi (Management) 4 754 Goa 4 1,020 30TH JUNE Rajkot 3 450 FY16 PIPELINE 2015 Kolhapur 4 918 LEADING TO Aurangabad 3 961 110 LOCATIONS POST FY16 97 LOCATIONS 557 SCREENS Howrah 3 850 429 SCREENS 128 SCREENS 377 SCREENS Vadodara 3 600 138,231 SEATS 110,898 SEATS 27,333 SEATS 99,429 SEATS Thrissur 6 1,390 Bangalore 3 388 Cuttack 4 836 Chennai 8 1,700 Bangalore 5 1,328 Total – 15 LOCATIONS 52 11,469 STRONG VISIBILITY FROM NEW SCREENS PIPELINE BACKED BY IDENTIFIED LOCATIONS AND SIGNED LEASE AGREEMENTS 12 CONTENT PIPELINE – JULY 2015 Ant Man Pixels Drishyam Bangistan Release Date: 24th July 2015 Release Date: 31st July 2015 Release Date: 31st July 2015 Release Date: 31st July 2015 Cast: Evangeline Lilly, Paul Rudd, Cast: Michelle Monaghan, Adam Cast: Ajay Devgan, Tabu Cast: Ritesh Deshmukh, Pulkit Corey Stoll Sandler, Peter Dinklage Director: Nishikant Kamat Samrat, Jacquline Fernandes Director: Peyton Reed Director: Chris Columbus Banner: Viacom 18 Motion Director: Karan Anshuman Banner: Marvel Studios Banner: Happy Madison Pictures Panorama Studios Banner: Excel Entertainment Productions, 1492 Pictures Junglee Pictures Actual release dates may vary. 13 CONTENT PIPELINE – AUGUST 2015 Mission Impossible 5 Brothers Phantom The Man from U.N.C.L.E. Release Date: 7th August 2015 Release Date: 14th August 2015 Release Date: 28th August 2015 Release Date: 28th August 2015 Cast: Tom Cruise, Jeremy Renner, Cast: Akshay Kumar, Siddharth Cast: Saif Ali Khan Katrina Kaif Cast: Henry Cavill, Hugh Grant, Jessica Chastain Malhotra, Jackie Shroff, Jackqline Director: Kabir Khan David Beckham Director: Christofer Mc Quarrie Fernandez Banner: Nadiadwala Grandson Director: Guy Ritchie Banner: Skydance Productions, Director: Karan Malhotra Entertainment Banner: Davis Entertainment Bad Robot Productions Banner: Drarma Productions Wigram Productions Actual release dates may vary. 14 CONTENT PIPELINE – SEPTEMBER 2015 Welcome Back Hero Katti Batti Pyaar Ka Punchnama 2 Release Date: 4th September 2015 Release Date: 11th September 2015 Release Date: 18th September 2015 Release Date: 25th September 2015 Cast: John Abraham, Anil Kapoor, Nana Cast: Sooraj Panchili, Athiya Shetty, Cast: Imran Khan, Kangana Ranaut Cast: Karthik Tiwari, Nusrat Patekar, Naseeruddin Shah, Shruti Govinda, Vinod Khanna Director: Nikhil Advani Bharucha Hassan Director: Nikhil Advani Banner: UTV Motion Pictures, Director: Luv Ranjan Director: Anees Bazmee Banner: Salman Khan Films Emmay Entertainment Banner: Viacom 18 Motion Pictures, Banner: Swiss Entertainment, Eros Eros International Panorama Studios International, Base Industries Group Mukta Arts, Emmay Entertainment Actual release dates may vary. 15 SHAREHOLDING STRUCTURE Share Price Performance Market Data As on 16.07.15 (BSE) 250 Market capitalization (Rs Mn) 18,925.0 200 150 Price (Rs.) 196.2 100 No. of shares outstanding (Mn) 96.5 50 0 Face Value (Rs.) 10.0 52 week High-Low (Rs.) 196.2 – 142.3 % Shareholding – June 2015 Key Institutional Investors at June 2015 % Holding Public / Goldman Sachs India 4.51% Others, 17.35 Macquarie Asia 4.27% Promoter & Kuwait Investment Authority Fund 4.10% Promoter Inox Benefit Government Pension Fund Global 2.49% Trust, 4.51 Group, 48.70 Tata MF 1.56% AADI Financial Advisors LLP 1.49% DII, 8.95 Reliance MF 1.43% HSBC Bank 1.35% FII, 20.49 ICICI Prudential 1.08% Morgan Stanley 1.05% Source: BSE * Shares held under Inox Benefit Trust reflect the Treasury Shares 16 FINANCIAL SUMMARY – LAST 5 YEARS REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN 12.8% 14.0% 4.3% CAGR: 28.7% 8.3% 11.3% 12.1% 1.4% 2.4% 2.0% 10,168.1 0.7% 8,688.3 369.4 7,652.9 1,219.6 1,227.7 6,448.6 CAGR: 41.3% 980.1 CAGR: 41.5% 3,703.2 728.8 184.5 200.4 308.1 50.0 42.3 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 EBITDA EBITDA Margin % PAT PAT Margin % REVENUES - SEGMENT BREAKUP LEVERAGE ANALYSIS RETURN METRICS 1.0 0.9 0.8 0.6 5% 5% 4% 7% 7% 0.4 5% 5% 4% 11.5% 6% 8% 10.3% 16% 18% 19% 9.4% 19% 19% 6.0% 5.7% 6.1% 6,761.9 75% 3.8% 73% 73% 69% 66% 3,154.3 3,202.9 3,245.8 3,909.1 1.6% 1.3% 1.4% 3,023.9 2,439.5 2,809.9 2,421.7 2,411.9 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 GBOC F & B Adv Others Debt Equity Debt to Equity ROCE % ROE % In Rs Mn ROE: PAT/Avg.