Inox Leisure Limited

INOX LEISURE LIMITED INVESTOR PRESENTATION FEBRUARY 2017 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 INDUSTRY OVERVIEW COMPANY OVERVIEW COMPETITIVE ADVANTAGE AND OUTLOOK Q3 & 9M FY17 RESULTS UPDATE PER SCREEN ECONOMICS SHAREHOLDING STRUCTURE ANNEXURE - DETAILED FINANCIALS 3 INDUSTRY OVERVIEW 4 INDIAN FILM EXHIBITION INDUSTRY STRONG FUNDAMENTALS, LARGELY UNDER-SCREENED, HUGE GROWTH POTENTIAL 2nd HIGHEST NUMBER OF THEATRE FOOTFALLS IN THE WORLD HIGHEST NUMBER OF FILM RELEASES IN THE WORLD Footfalls in Million 2,178 1,602 1,930 1,364 745 554 476 279 324 241 204 182 208 197 176 171 169 156 146 166 China India US France Mexico UK Japan S. Korea Germany Russia India China Japan US France UK Germany S. Korea Spain Italy HOWEVER, INDIA’S SCREEN DENSITY IS ONE OF THE LOWEST Screens / Million population 125 95 80 60 57 40 26 25 16 12 10 8 US France Spain UK Germany South Korea Japan Taiwan China Thailand Brazil India Source: CRISIL Report, FICCI Whitepaper on Screen Density in India 5 INDIAN FILM EXHIBITION INDUSTRY STEADY PERFORMANCE AND RESILIENCE INDIAN FILM INDUSTRY DISPLAYS STEADY PERFORMANCE TRENDS In Rs Billion 250 CAGR 10.5% 227.3 207.8 190.0 200 CAGR 10.4% 174.1 158.7 138.2 150 125.3 126.4 112.4 92.9 100 159.9 136.1 147.6 115.8 125.7 50 93.4 93.5 101.4 68.8 85.1 0 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E Domestic Theatrical Overseas Theatrical Home Video Cable & Satellite Rights Ancilliary Revenue Streams DOMESTIC THEATRICALS CONTINUE TO REMAIN THE MAJOR REVENUE CONTRIBUTOR 74.1% 75.7% 74.5% 74.0% 73.4% 73.0% 72.2% 71.6% 71.0% 70.3% 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E % Share of Domestic Theatricals in Total Film Industry Revenues Source: FICCI-KPMG 2016 Report 6 INDIAN FILM EXHIBITION INDUSTRY MULTIPLEXES WITNESSING RAPID GROWTH NUMBER OF SCREENS FACTORS DRIVING GROWTH IN MULTIPLEXES: 9,308 9,121 8,685 8,451 8,002 . Superior location, destination and parking 6,000 6,000 facilities. State of art equipment (high quality video 2,134 2,225 and audio), superior interiors, ambience 1,500 1,630 1,075 1,225 1,350 and service. 2010 2011 2012 2013 2014 2015 Oct-16 . Multiple screens in one location offer a Single Screens Multiplexes wider variety of content to the patrons. Further, different screen sizes provide Multiplexes currently account for programming flexibility. This results in higher occupancy ratios. ~ 27% market share of the screens, however account for . Strong demographics, rising disposable incomes and discretionary spends. more than 40% of box office collections Source: CRISIL Report, FICCI-KMPG Report 2016, Industry Sources 7 INDIAN FILM EXHIBITION INDUSTRY MULTIPLEX INDUSTRY IS IN CONSOLIDATION PHASE The Indian multiplex industry has undergone significant consolidation over last decade. Industry leaders have grown not only through organic screen additions, but also through acquisition of smaller regional multiplex chains and single screen players. As a result of this consolidation, the top four players account for ~ 70% of multiplex screens. 569 NUMBER OF SCREENS 446 325 239 244 142 3 4 PVR INOX Carnival Cinepolis FY11 Dec-16 8 INDIAN FILM EXHIBITION INDUSTRY INCREASING NUMBER OF INR 1 BN + MOVIES WIDER SCREEN RELEASES 5,200 5,300 4,500 3,446 3,359 3,014 2,638 2,065 2,101 INCREASING NUMBER OF 1,598 1,000 MOVIES ARE GENERATING MORE THAN RS 1 BN IN 3 Idiots Dabaang Bodyguard Ek Tha Dabaang 2 Chennai Dhoom 3 Kick P.K Bajrangi Dangal (2009) (2010) (2011) Tiger (2012) Express (2013) (2014) (2014) Bhaijaan (2016) NET BOX OFFICE COLLECTIONS (2012) (2013) (2015) DRIVEN BY HIGHER NUMBER OF INR 1 BN + MOVIES WIDER SCREEN RELEASES AND 2 2 2 IMPROVING CONTENT QUALITY 2 9 7 1 5 6 5 6 1 2 2008 2009 2010 2011 2012 2013 2014 2015 2016 INR 1 BN + INR 2 BN + Source: Industry 9 COMPANY OVERVIEW 10 COMPANY OVERVIEW TRACK RECORD OF AGGRESSIVE EXPANSION 113 107 96 446 420 79 372 72 68 63 310 279 257 239 32 26 22 14 119 9 91 6 76 2 3 51 25 35 8 12 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Dec-16 Screens Properties ON AN AVERAGE ADDITION OF 3 SCREENS EVERY MONTH OVER THE LAST DECADE Note: Includes Acquisition of 1. 89 Cinemas in FY08, 2. Fame India in FY11, 3. Satyam Cineplexes in FY15 11 COMPANY OVERVIEW PAN INDIA PRESENCE ONE OF THE LARGEST MULTIPLEX CHAIN OPERATOR IN INDIA PUNJAB | 1 Property | 6 Screens UTTAR PRADESH | 4 Properties | 16 Screens 19 States DELHI | 4 Properties | 13 Screens JHARKHAND | 1 Property | 4 Screens HARYANA | 5 Properties | 16 Screens 57 RAJASTHAN | 13 Properties | 43 Screens Cities MADHYA PRADESH | 4 Properties | 16 Screens Assam | 1 Properties | 2 Screens 113 GUJARAT | 12 Properties | 48 Screens WEST BENGAL | 14 Properties | 55 Screens Properties ODISHA | 1 Property | 3 Screens MAHARASHTRA | 23 Properties | 102 Screens CHHATTISGARH | 2 Properties | 8 Screens 446 GOA | 4 Property | 14 Screens TELANGANA | 2 Properties | 11 Screens Screens KARNATAKA |11 Properties | 41 Screens ANDHRA PRADESH | 7 Properties | 28 Screens 113,291 KERALA |1 Property | 6 Screens TAMIL NADU | 3 Properties | 14 Screens Seats Includes 7 management properties with 23 screens and 5,763 seats 12 COMPANY OVERVIEW OUR MARQUEE PROPERTIES Bengaluru Kolkatta Magrath Quest Road Hyderabad Mumbai GVK Malad 13 COMPANY OVERVIEW OUR MARQUEE PROPERTIES INOX INSIGNIA at INOX Laserplex, Nariman Point ‘INDIA’S FIRST 7-STAR LUXURY MOVIE VIEWING EXPERIENCE’ SUPERIOR TECHNOLOGY: • Laser Projection: India’s first laser projection system - 300% enhanced picture quality • Dolby Atmos Sound: Explosive cinema surround sound experience • Volfoni 3D screen: Smart Crystal Diamond solution with the brightest 3D screens LUXURY MOVIE VIEWING EXPERIENCE: • Plush Ergonomic Recliners: Micro-adjustable premium Italian leather sofas with a USB charging port • Exclusive menu by Master Chef Vicky Ratnani • Stylish staff uniforms crafted by celebrity designer Arjun Khanna • Butler on call providing personalised service 14 COMPANY OVERVIEW OUR MARQUEE PROPERTIES INOX INSIGNIA at R City Mall, Ghatkopar ‘INOX LAUNCHES ITS FIRST IMAX SCREEN’ 15 COMPANY OVERVIEW LAST 5 YEARS – FINANCIAL SUMMARY Financial Summary is as per IGAAP REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN 5.8% 12.8% 14.0% 12.1% 14.2% 4.3% CAGR: 20% 11.3% 2.4% 2.0% 1,332.7 0.7% 1,016.8 189.9 77.5 868.8 765.3 CAGR: 27% CAGR: 107% 644.9 122.0 122.8 98.0 36.9 72.9 18.5 20.0 4.2 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 EBITDA EBITDA Margin % PAT PAT Margin % REVENUES - SEGMENT BREAKUP LEVERAGE ANALYSIS RETURN METRICS 4% 0.9 5% 7% 7% 5% 0.8 0.6 5% 4% 0.4 0.5 12.4% 12.2% 6% 8% 7% 11.5% 18% 19% 10.3% 19% 19% 20% 9.4% 6.1% 6.0% 5.7% 676.2 73% 73% 69% 590.8 3.8% 66% 68% 320.3 324.6 390.9 1.3% 244.0 281.0 242.2 241.2 267.0 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 GBOC F & B Adv Others Debt Equity Debt to Equity ROCE % ROE % In Rs Crore ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed [(Capital Employed = Equity + Total Debt) 16 COMPANY OVERVIEW LAST 5 YEARS – OPERATIONAL SUMMARY FOOTFALLS & OCCUPANCY RATE F & B - SPEND PER HEAD (SPH) (Rs) ADV REV PER OPERATING SCREEN (Rs Lakhs) 25% 28% 28% 25% 29% 55 58 25.1 24.6 47 49 534.4 44 18.5 386.0 410.7 13.7 306.8 353.3 12.9 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Footfalls (Lakhs) Occupancy (%) AVERAGE TICKET PRICE (ATP) (Rs) F & B – NET CONTRIBUTION (%) OTHER REV PER OPERATING SCREEN (Rs Lakhs) 75.0% 170 74.1% 22.5 21.9 69.4% 70.0% 71.3% 164 19.2 160 13.2 13.7 156 156 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Note: All the above charts exclude managed properties. 17 COMPANY OVERVIEW LAST 5 YEARS – OPERATIONAL SUMMARY Operational Summary is as per IGAAP ENTERTAINMENT TAX (%) FILM DISTRIBUTOR SHARE (%) 43.7% 44.3% 44.3% 43.8% 43.1% 23.8% 36.0% 36.2% 36.4% 35.9% 34.8% 21.4% 22.3% 21.6% 22.0% 17.6% 18.3% 17.8% 18.0% 19.2% FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Entertainment Tax - % on NBOC Entertainment Tax - % on GBOC Distributor Share on NBOC Distributor Share on GBOC OTHER OVERHEADS PER OPERATING SCREEN (Rs Lakhs) 145.8 156.2 132.5 138.3 120.6 43.4 47.6 39.8 40.4 36.0 39.2 40.8 45.5 31.5 35.4 35.7 39.3 40.2 41.3 42.9 17.4 18.1 18.5 20.3 20.2 FY12 FY13 FY14 FY15 FY16 NBOC (Net Box Office Collections) Employee Benefits Property Rent & Conducting Fees GBOC (Gross Box Office Collections) CAM, Power & Fuel, R&M Other Overheads 18 COMPETITIVE ADVANTAGE AND OUTLOOK 19 COMPETITIVE ADVANTAGES Strong Promoter Group Under-leveraged Balance Sheet With Further Scope For Dilution Well Diversified Presence Across India Strong New Screens Pipeline State Of The Art Technology, Unmatched Service And Ambience Strong Brand Partnerships 20 COMPETITIVE ADVANTAGE STRONG PEDIGREE .

Load more