INOX LEISURE LTD. RESULTS UPDATE |Q1 FY2019 1 D I S C L a I M E R DISCUSSION SUMMARY

INOX PALM BEACH VASHI

INOX LEISURE LTD. RESULTS UPDATE |Q1 FY2019 1 D i s c l a i m e r DISCUSSION SUMMARY

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  Financial Results 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.  Property Openings and Pipeline 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.  Content Pipeline

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  Shareholding Structure and performance or achievements of ILL may vary significantly from such statements. Balance Sheet Items Due to rounding-off, figures presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the rounded- off figures.  Annexure All financial figures, upto and including FY15 are as per IGAAP and for FY16 and thereafter are as per IND-AS. Revenues for FY14 to FY15 are shown net of entertainment tax, to be consistent with the revenues under IND-AS for FY16 and thereafter.

2 Q1 FY19 Results Highlights

Q1 FY19 YoY Comparison

REVENUE FROM EBITDA PAT OPERATIONS 500.0 EBITDA EBITDA Margin PAT PAT Margin

450.0 50.0 10.0% 100.0 25.0% 8.9%

400.0 45.0 9.0% 90.0 19.6% 20.1% 8.3%

350.0 40.0 8.0% 80.0 20.0%

35.0 7.0% 300.0 70.0

30.0 6.0% 60.0 15.0% 250.0 7% 10% 15% 25.0 50.0 5.0% 200.0 387.4 414.9 20.0 40.0 83.5 10.0% 4.0%

150.0 75.9 37.0

15.0 30.0 32.1 3.0%

100.0

10.0 20.0 5.0% 2.0%

50.0

5.0 10.0 1.0%

- - - 0.0% 0.0% Q1FY18 Q1FY19 Q1FY18 Q1FY19 Q1FY18 Q1FY19

All figures in INR Crs., unless specified Note: EBITDA excludes Other Income (non-operating) 3 Q1 FY19 Results Analysis – Revenue Break Up Analysis

Q1 FY19 YoY Comparison

500.0

450.0 414.9 387.4 400.0 21.6 26.7 40.0 350.0 33.4 -18.8% 300.0 111.4 %Share Q1FY18 Q1FY19 88.2 Net Box Office 61.7% 58.3% 250.0 20.0% Net Food & Beverage 22.8% 26.8% 200.0 Advertisement 8.6% 9.6% Other Operating Revenues 6.9% 5.2% 150.0 26.3% 239.2 241.9 100.0 1.1% 50.0

0.0 Q1FY18 Q1FY19

All figures in INR Crs., unless specified 4 Q1 FY19 Results Analysis – Top 5 Movies in INOX

TOP 5 Movies in INOX

Avengers: Jurassic World : Q1FY19 Infinity War Raazi Race 3 Baaghi 2 Fallen Kingdom Footfalls (Lacs) 21.07 15.86 10.55 11.01 8.74 GBOC (INR Crs.) 51.07 30.03 24.81 18.50 17.23

Baahubali - The Q1FY18 Conclusion Fast & Furious 8 Tubelight Hindi Medium Half Girlfriend Footfalls (Lacs) 61.25 9.38 7.33 8.69 5.94 GBOC (INR Crs.) 128.75 18.41 17.23 14.96 10.76 Top 5 films accounted for 46% of Q1 FY19 GBOC revenues (63% in Q1 FY18)

GBOC – Gross Box Office Collection 5 Q1 FY19 Results Analysis – Key Operational Metrics

Overall Footfalls & Occupancy% Comparable Properties Footfalls & Occupancy%

Footfalls (Lacs) Occ% Footfalls (Lacs) Occ%

150.0 38% 200.0 31% 33% 29% 148.0 180.0 32%

33% 28% 30% 160.0 146.0

28%

140.0 144.0 23%

120.0 23% 142.0

100.0 18%

140.0 18%

80.0

158.2 156.2 138.0 13% 60.0 143.1 13%

136.0

40.0 -1.2% -3.4% 8% 138.2 8% 134.0

20.0

132.0 3% - 3% Q1FY18 Q1FY19 Q1FY18 Q1FY19

Footfalls with Management properties: Q1FY19: 165 lacs

300 Comparable Properties Average Ticket Price (ATP) [INR] Overall Average Ticket Price (ATP) [INR] 300

250 250

200 200

150 150 3.1% 100 2.4% 199 100 193 190 194

50 50

- - Q1FY18 Q1FY19 Q1FY18 Q1FY19 6 Note: All above charts exclude management properties Q1 FY19 Results Analysis – Key Operational Metrics

Spend Per Head (SPH) [INR] Food & Beverages – Net Contribution (%)

100 100.0%

90 90.0%

80 80.0%

70 70.0%

60 60.0%

50 50.0% 40 17.2% 76 40.0% 76.8% 75.6% 30 65 30.0%

20 20.0%

10 10.0%

- 0.0% Q1FY18 Q1FY19 Q1FY18 Q1FY19

Advertisement Revenue [INR Crs.] Other Operating Revenue [INR Crs.]

50.0 50.0

45.0 45.0

40.0 40.0

35.0 35.0

30.0 30.0

25.0 25.0

20.0 20.0 20.0% 40.0 15.0 15.0 33.4 26.7 10.0 10.0 21.6

5.0 5.0 -18.8%

- - Q1FY18 Q1FY19 Q1FY18 Q1FY19

7 Q1 FY19 Results Analysis – Key Operational Metrics

Film Distributor Share [%]

70.0% Distributor Share On NBOC Distributor Share On GBOC 60.0%

50.0% 43.7% 44.2%

40.0% 34.5% 34.7%

30.0%

20.0%

10.0%

0.0% Q1FY18 Q1FY19

Other Overheads Per Operating Screen (INR Lacs)

50.0

45.0 42.5 42.4 -3.4% 40.0

35.0 13.0 12.4 30.0 -4.1%

25.0 12.1 11.7 20.0

15.0 4.8% 12.6 10.0 12.0

5.0 5.3 8.5% 5.7 - NBOC (Net Box Office Collections) , Q1FY18 Q1FY19 8 GBOC (Gross Box Office Collections) INOX Brings The IMAX Experience to Malad

• INOX has redefined the way cinema is viewed in the country with the best of world-class technology, service and 7-star luxury.

• The new INOX IMAX theatre at Inorbit Mall offers a truly immersive cinematic experience for its guests.

• IMAX’s cutting-edge projection system, which delivers crystal-clear images, coupled with IMAX's customized theatre geometry and powerful digital sound system, create a unique environment that will make audiences feel as if they are in the movie.

• At INOX, it’s about living the movie and an association with IMAX only brings forth that philosophy to practice. 9 New Properties Opened

Mumbai Palm Beach (8th May’18) Cuttack SGBL Square Mall (16th Jun'18) Zirakpur Dhillon Mall ( 29th Jun'18) 4 Screens 779 Seats 4 Screens 830 Seats 4 Screens 945 Seats

Property Names Opened Property Screens Seats Mumbai Palm Beach Q1FY19 1 4 779 Cuttack SGBL Square Mall Q1FY19 1 4 830 Zirakpur Dhillon Mall Q1FY19 1 4 945 Q1FY19 Openings 3 12 2,554 Kakinada SRMT Q2FY19 1 5 915 Gurgaon Sapphire Q2FY19 1 3 567 YTD FY19 Openings 5 20 4,036

Kakinada SRMT (9th Jul'18) Gurgaon Sapphire (24th Jul'18) 5 Screens 915 Seats 3 Screens 567 Seats 10 Track Record of Aggressive Expansion

Screens Properties 128 123 600 118 130 107 110

96 512 492

500 468 79 90 72

68 420 63 70

400 372

32 310 22 26 300 279 30

14 257 9 2 3 6 239 10

200

-10 119

-30 91

100 76 51

35 -50

12 8

0 -70 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Jul-18

AVERAGE ADDITION OF 8 SCREENS EVERY QUARTER SINCE INCEPTION Note: Includes Acquisition of 89 Cinemas in FY07, Fame in FY11 and Satyam in FY15

11 PAN India Presence

ONE OF THE LARGEST MULTIPLEX CHAIN OPERATOR IN INDIA

HARYANA | 6 Properties | 19 Screens 64 Cities RAJASTHAN | 13 Properties | 43 Screens

* Includes 8 management properties with 29 screens and 7,370 seats 12 New Screen Pipeline

FY19 Pipeline Properties Screens Seats Properties Properties Screens Seats FY18 123 492 121,780 Mumbai Palm Beach (Opened 8th May'18) 1 4 779 Adjustments** - - (308) Cuttack SGBL Square Mall (Opened 16th Jun'18) 1 4 830 FY19 Openings till date 5 20 4036 Zirakpur Dhillon Mall (Opened 29th Jun'18) 1 4 945 Expected - Aug18 to Mar19 7 39 6,543 Kakinada SRMT (Opened 9th Jul'18) 1 5 915 FY19 Expected 135 551 132,051 Gurgaon Sapphire (Opened 24th Jul'18) 1 3 567 Additions Post FY19 118 757 135,506 Pune (Existing) - 2 428 Leading to 253 1,308 267,557 Gwalior 1 6 1,009 Delhi 1 3 117 Jaipur 1 7 723 STRONG VISIBILITY FROM NEW SCREENS Bangalore 1 5 1,328 PIPELINE BACKED BY SIGNED AGREEMENTS Mumbai (Existing) - 2 98 Hyderabad 1 8 1,678 Bhubaneswar 1 3 612 Jaipur 1 3 550 Total 12 59 10,579

**Adjustments: • 308 seats reduced due to renovation at Nashik, Banglore Garuda, Kolkata Southcity, Mumbai Malad

13 Content Pipeline – July 2018

Ant Man And The Wasp Soorma Skyscraper (3D) (3D IMAX) Release Date: Release Date: Release Date: 13th July 2018 20th July 2018 13th July 2018 Cast: Diljit Dosanjh, Cast: Dwayne Johnson, Cast: Paul Rudd, Sandeep Singh, Taapsee Neve Campbell Evangeline Lilly, Michael Pannu Director: Rawson M. Pena Director: Shaad Ali Thurber Director: Peyton Reed Banner: Sony Pictures Banner: Legendary Banner: Marvel Studios Networks Productions Entertainment, Flynn Picture Company, Seven Bucks Productions

Dhadak Saheb Biwi Aur M:i 6 - Mission Gangster 3 Impossible (IMAX) Release Date: 20th July 2018 Release Date: Release Date: Cast: Janhvi Kapoor, 27th July 2018 27th July 2018 Ishaan Khatter Cast: Sanjay Dutt, Cast: Tom Cruise, Henry Director: Shashank Jimmy Sheirgill, Mahie Cavill Khaitan Gill, Chitrangda Singh Director: Christopher Banner: Dharma Director: Tigmanshu McQuarrie Productions, Zee Dhulia Banner: Bad Robot, Studios Banner: JAR Pictures Paramount Pictures, Skydance Media, TC Productions

14 Content Pipeline – August 2018

Karwaan Fanney Khan Vishwaroop II

Release Date: Release Date: Release Date: 3rd August 2018 3rd August 2018 10th August 2018 Cast: Irrfan Khan, Cast: Anil Kapoor, Cast: Kamal Haasan, Dulquer Salmaan, Aishwarya Rai Bachchan, Rahul Bose, Pooja Mithila Palkar Rajkummar Rao Kumar Director: Akarsh Director: Atul Manjrekar Director: Kamal Haasan Khurana Banner: Rakeysh Banner: Raajkamal Films Banner: Ishka Films, Omprakash Mehra International, Rohit RSVP Pictures,T-Series Super Shetty Picturez, Reliance Cassettes Industries Ltd. Entertainment

Satyameva Jayate GOLD Yamla Pagla Deewana Phir Se Release Date: Release Date: 15th August 2018 15th August 2018 Release Date: Cast: John Abraham, Cast: Akshay Kumar, 31st August 2018 Manoj Bajpayee, Aisha Mouni Roy Cast: Dharmendra, Sharma Director: Reema Kagti Sunny Deol, Bobby Deol Director: Milap Zaveri Banner: Excel Director: Navaniat Banner: T-Series Super Entertainment Singh Cassettes Industries Banner: Pen India Ltd., Ltd., Emmay Sunny Sounds Pvt Ltd, Entertainment Pvt. Ltd Intercut Entertainment

15 Content Pipeline – September 2018

Drive Paltan The Nun

Release Date: Release Date: Release Date: 7th September 2018 7th September 2018 7th September 2018 Cast: Sushant Singh Cast: Suniel Shetty, Cast: Taissa Farmiga, Rajput, Jacqueline Arjun Rampal, Bonnie Aarons Fernandez Abhishek Bachchan Director: Corin Director: Tarun Director: J P Dutta Hardy Mansukhani Banner: Zee Studios, Banner: Atomic Banner: Dharma J.P. Films Monster Productions Productions, New Line Cinema, The Safran Company

Predator (IMAX) Batti Gul Meter Chalu Sui Dhaga – Made in India Release Date: Release Date: 14th September 2018 21st September 2018 Release Date: Cast: Olivia Munn, Cast: Shahid Kapoor, 28th September 2018 Yvonne Strahovski Shraddha Kapoor, Yami Cast: Varun Director: Shane Black Gautam Dhawan, Anushka Banner: Twentieth Director: Shree Narayan Sharma Century Fox, Davis Singh Director: Sharat Entertainment, Banner: KriArj Katariya TSG Entertainment, Entertainment, Banner: Yash Raj Canada Film Capital, T-Series Super Cassettes Films Dark Castle Industries Ltd. Entertainment

16 Content Pipeline – October 2018

A Star is Born Ek Ladki Ko Dekha Toh Ajay Devgan Luv Ranjan Aisa Laga Next Release Date: 5th October 2018 Release Date: Release Date: Cast: Lady Gaga, Bradley 12th October 2018 19th October 2018 Cooper Cast: Anil Kapoor, Sonam Cast: Ajay Devgan, Kajol Director: Bradley Cooper Kapoor Ahuja, Rajkummar Director: Akiv Ali Banner: Gerber Pictures Rao, Juhi Chawla Banner: Joint Effort, Live Nation Director: Shelly Chopra Productions, Malpaso Banner: Fox Star Studios, Productions, Metro- Vidhu Vinod Chopra Goldwyn-Mayer (MGM), Productions, Rajkumar Thunder Road Pictures Hirani Films

Badhai Ho Namastey England Mowgli (3D IMAX)

Release Date: Release Date: Release Date: 19th October 2018 19th October 2018 19th October 2018 Cast: Ayushmann Cast: Arjun Kapoor, Cast: Rohan Chand, Cate Khurrana, Sanya Parineeti Chopra Blanchett, Benedict Malhotra Director: Vipul Cumberbatch, Christian Director: Amit Sharma Amrutlal Shah Bale Banner: Junglee Banner: Pen India Ltd., Director: Andy Serkis Pictures, Chrome Reliance Banner: Imaginarium Pictures Entertainment, Productions, Warner Blockbuster Movie Bros. Entertainers

17 Shareholding Structure

Share Price Performance 350 As on 23-Jul-18 300 Market Data 250 No. of Shares Outstanding (Crs.) 9.6 200 150 Face Value (INR) 10.0 100 Price (INR) 202.5 50 0 52 week High/Low (INR) 326.00/195.30 Market Capitalisation (INR Crs.) 1,953 Source: BSE Source: BSE

Key Institutional Investors – June 2018 % Holding % Shareholding as of June 2018 DSP Blackrock MF 7.0% Public/Others, 11.48% RelianceMF 4.1% INOX Benefit Aditya Birla Sunlife 3.5% Trust, 4.51% Kuwait Investment Authority Fund 3.0% Promoter & Goldman Sachs India Ltd. 2.6% Promoter DII, 17.70% Group, 48.70% Morgan Stanley 2.2% Sundaram MF 1.8% VFM Emerging Markets Trust 1.6% FII, 17.61% RAMS Equities Portfolio Fund 1.3% Taiyo Greater India Fund Ltd 0.8% Source: Company Source: Company 18 INOX Vashi Palm Beach

Annexure

19 Annexure: Consolidated P&L Statement

Particulars (INR Crs.) Q1FY19 Q1FY18 YoY % Q4 FY18 QoQ % FY18 Revenue from Operations 414.9 387.4 7.1% 323.6 28.2% 1,348.1 Exhibition Cost 109.7 107.1 2.4% 81.3 34.9% 367.3 Food & Beverages Cost 27.2 20.5 33.0% 19.5 39.6% 74.4 Employee Benefits Expense 26.3 23.0 14.5% 25.4 3.4% 96.4 Lease Rental & Hire Charges 57.7 52.2 10.5% 52.1 10.7% 203.8 CAM, Power & Fuel, R&M 53.2 52.6 1.2% 44.3 20.2% 188.2 Other Expenses 57.4 56.3 1.9% 57.2 0.4% 207.7 EBITDA 83.5 75.9 10.1% 43.9 90.3% 210.4 EBITDA Margin % 20.1% 19.6% 54 bps 13.6% 657 bps 15.6% Depreciation & Amortisation 22.7 21.5 5.5% 21.9 3.5% 86.7 Impairment Loss on PP&E - 0.6 -100.0% 1.8 -100.0% 3.1 Other Income 2.8 2.3 21.6% 6.2 -54.7% 14.5 Finance Cost 6.9 7.2 -3.8% 7.1 -2.6% 28.9 Exceptional Items - - 8.5 -100.0% 8.5 Share of Profit from Joint Ventures - 0.01 -100.0% (0.02) -100.0% (0.03) PBT 56.7 48.9 16.0% 10.7 430.8% 97.6 Current Tax 18.6 17.8 4.2% 0.9 1894.2% 32.5 Deferred Tax 1.1 (1.1) -205.8% 5.8 -80.6% 4.2 Tax pertaining to earlier years - - (53.7) -100.0% (53.7) PAT 37.0 32.1 15% 57.7 -36% 114.6 PAT Margin % 8.9% 8.3% 63 bps 17.8% -891 bps 8.5% Earnings Per Share (EPS) 4.03 3.49 15% 6.29 -36% 12.49

All figures in INR Crs., unless specified 20 Annexure: Brief Profile

Business Overview • Inox Leisure Limited (ILL), incorporated in 1999, is one of the largest multiplex operator in India • ILL is a part of Inox Group which is diversified across industrial gases, engineering plastics, refrigerants, chemicals, cryogenic engineering, renewable energy and entertainment sectors • ILL currently operates 128 properties (512 screens and 125,508 seats) located in 64 cities across India, being the only multiplex operator having such a diverse presence across PAN India • The company accounts for 19% share of the multiplex screens in India and ~11% share of domestic box office collections • The company has aggressively scaled up through organic and inorganic expansion over last decade growing from 2 properties – 8 screens in FY03 to 128 properties – 512 screens at present, on an average adding 8 screens every quarter since inception.

Key Strengths

• One of the largest multiplex chains in India • Most diversified distribution of multiplexes in India • Premium multiplex properties, state of the art technology and unmatched service and ambience • Strong partnerships with more than 50 leading Indian and Global brands, offering high growth potential for advertising and other ancillary revenues • Strong management team and recognized and trusted corporate group

Strong Financials

• Consolidated Revenues, EBITDA and PAT were Rs 1,348.1 cr, Rs 210.4 cr and Rs 114.6 cr in FY18 • Strong balance sheet with Gross Debt of Rs 291.9 cr, Net Debt of Rs 265 cr and Equity of Rs 669.6 cr in FY18 with net D/E ratio of 0.40x

21 Annexure : Recognised & Trusted Corporate Group

Listed Companies Other Key Companies

Gujarat Fluorochemicals INOX Leisure INOX Air Products INOX India Private INOX Wind Limited Limited Limited Private Limited Limited

. Largest producer of (by volume) . Fully integrated player in the . One of the largest multiplex . 50:50 joint venture with Air . Largest producer of cryogenic Chloromethanes, refrigerants wind energy market chains in India Products Inc., USA liquid storage and transport and Polytetrafluoroethylene in . State-of-the-art manufacturing tanks in India India. . In the business of setting up, . Largest producer of industrial plants near Ahmedabad operating and managing a gases in India . Offers comprehensive . Pioneer of carbon credits in (Gujarat), Una (Himachal national chain of multiplexes solutions in cryogenic storage, . 40 plants spread throughout India Pradesh) and Barwani (Madhya under the brand name ‘INOX’ vaporization and distribution the country Pradesh). Our Madhya Pradesh engineering facility is one of the largest in . Present in 64 cities with 128 Asia multiplexes and 512 screens . Has operations in India, USA, Netherlands and Brazil . Ability to provide end-to-end turnkey solutions for wind farms

• 90 Year track record of consistent business growth • 10,000+ employees at 150+ business units across India • USD $3 Billion Inox Group diversified across 7 different businesses • Distribution network spread over 50+ countries 22 Annexure: PAN India Presence

128 Properties 64 cities

Well Diversified South, 24, 19% East, 20, 16% East; 10; 16% Distribution of South; 13; 20% Multiplexes across India

North, 31, 24% West; 53; 41% North; 19; 30% West; 22; 34%

Access to Wide Variety of Regional Content 512 Screens 125,508 Seats

East, 76, 15% East; 19,636 ; 16% South, 104, 20% South; 23,852 ; 19% Lower Dependency on Hindi and English Content North; 109; 21%

West; 223; 44% North; 27,549 ; 22% West; 54,471 ; 43%

Includes 8 management properties with 29 screens and 7,370 seats 23 Annexure: Strong Brand Partnerships

Automobiles Media FMCG Consumer Durables BFSI Ecommerce & Others Others Telecom INOX PALM BEACH VASHI

Thank You Balesh Talapady GM – Business Analysis INOX Leisure Ltd. Contact+91-22-4062 6927 25 Email: [email protected]