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ANNUAL REPORT 2 0 0 7 - 2 0 0 8 www.reportjunction.com P.S.Saminathan Chairman and Managing Director From the Chairman’s Desk Pyramid Saimira Group started its Exhibition division from South India - Tamil Nadu in Nov. 2005. Right from the beginning, through the fiscal years of 2006 and 2007, it has been an incredible vertical take-off. Initially only into exhibition, the Group adopted integration across different segments and ventured into distribution, production and post-production and also expanded the company’s footprint into other geographies, including Malaysia, Singapore, UK, USA and has now entered even the last frontier –China. Parallel developments included the Group’s foray laterally into activities like post production, media advertisement, radio, magazines, DTH and of course, Food & Beverages. It has been an exciting journey; however, not without challenges and hurdles. Along the way, it is true that we have faced pit falls like aggregation of risk, leakages in the system, lead and lag between concept integration to process WE DO BELIEVE integration, non-sink of systemized culture, across the board corruption, misappropriations and of course business and non-business competition. Despite this, the group has significantly succeeded to a large extent in integrating the that change is not something last mile of film industry and has further taken this growth model to tier II cities, thereby creating a holistic integrated that can be predicted; business model. The group has expanded its management bandwidth, creating a highly systemized process orientation, high level of it should be created. corporate governance, and implementing proper internal control mechanisms. We have undertaken the expansion of the management bandwidth with a lot of caution. And indeed, the growth of the business is testimony to the strategic vision of the company. Though long-standing empires are created by strategic vision, they are sustained by only long drawn tactical brilliance. The current focus is to consolidate and successfully stabilize the growth momentum, reduce the leakages in the system, improve the processes, improve the average revenue per user, utilize the huge customer WE DO NOT BELIEVE connect we have (possibly 2 Million users a day) and of course, improve structural stability, financial stability and have that the sky is the limit; a balance sheet which reflects its growth and also fully stable in its assets and liability match. we believe that we can go far The management is working towards long-term consolidation of the company and the various businesses that we are involved in. We believe that we will achieve this Herculean task in the same way that we have recorded tremendous and beyond. growth. And once we achieve this, we have no doubt that Pyramid Saimira Group will create unparalleled history in the field of Entertainment and Media. Different people approach change differently, especially when tough times set in. Some people fully resist it, some people try to avoid it, some try to mitigate it, some welcome it, some accept it, some adopt to it and some exploit P.S.Saminathan it. Our philosophy is to create the next change. We do believe that change is not something that can be predicted; it Chairman and Managing Director should be created. We do not believe that the sky is the limit; we believe that we can go far and beyond. Optimistically yours, P.S.Saminathan Chairman and Managing Director Part - A : PYRAMID SAIMIRA Corporate News - Pages 1 to 19 I Part - B : PYRAMID SAIMIRA THEATRE LIMITED Annual Report 2007 - 2008 - Pages 1 to 75 Chennai, 30th November, 2008 Part A I PYRAMID SAIMIRA I Corporate News 2007 - 2008 I 1 www.reportjunction.com Business Leaders-India Satish Shukla S S Balakrishnan Chief Executive Officer Senior General Manager - Operations Emerging Technologies Exhibition V. Natarajan P.S.Saminathan N. Narayanan Rajesh Karamchandani R S Chandrasekar Chairman Emeritus Chairman & Director Vice President - Sales General Manager - Operations Managing Director Dimples Cine Advertising Content Distribution Kamal Karamchandani Subhaa Venkat Corporate Management Team Vice President - Alliance General Manager - Creative Dimples Cine Advertising TV Content Production K S Srinivasan R Shivagurunathan Director & Chief Executive Officer Vice President Lumina Thomas V Krishnamoorthy Pyramid Saimira Production Finance & Accounts Chief Executive Officer General Manager - Finance & Accounts International Limited Dimples Cine Advertising Exhibition G K Kalidasan T A Adikesavan Vice President Sachin Naik B Sakthivel President - Management Services & Human Resources Managing Director Deputy General Manager Knowledge Management Systems Animation & Gaming Film Production V Srinivasan T Shivakumar Chief Technical Officer Hetal Bhuva R Chandrasekaran Chief Executive Officer - Exhibition & Business Development Director Senior Deputy General Manager - Content Head - Project Finance Purvi Shah Animation & Gaming Global Head S Saravanan S Ganesan Corporate Communications Juned Jable Deputy General Manager - Post Production Group Company Secretary Development Directions Production Services Animation & Gaming Business Leaders-International K Sriram R Rangaraj Director Naveen H Head - News Reel India Uma Saminathan Pyramid Saimira Entertainment America Inc. - U.S.A. General Manager Magazines Director Games Arcades Pyramid Saimira Entertainment Limited - Singapore Prakash Iyer Pyramid Saimira Entertainment America Inc. - U.S.A. Head - Finance & Business Development Pyramid Saimira Entertainment America Inc. - U.S.A. A S Sathish Kumar Industry Advisory Team Chief Executive Officer Jayavel Murugan Pyramid Saimira Theatre Chain - Malaysia Head of Distribution Chitra Lakshmanan Tamma Reddy Bharadwaj Pyramid Saimira Entertainment America Inc. - U.S.A. Pyramid Saimira Entertainment America Inc. - U.S.A. Tamil Film Industry Relationship Advisor Telugu Film Industry Relationship Advisor R Venkatakrishnan John Hamid Ram Mohan Rao S Varadarajan Chief Executive Officer Head of Operations Film Procurement Advisor Insurance Services Advisor Pyramid & Longzhe Culture and Theatre Ltd - China Pyramid Saimira Entertainment America Inc. - U.S.A. Dr Santosh Pillai Shariq Hamid In-House Promotions and Publicity Chief Executive Officer & Founder Head of Theatre Operations D Paranchjothi Aurona Technologies Limited - United Kingdom Pyramid Saimira Entertainment America Inc. - U.S.A. Mehru Advertising Company Pvt Ltd., Ajoy Khandheria Michael Managing Director General Manager - Operations Spize TV - United Kingdom Pyramid & Longzhe Culture and Theatre Ltd - China Amitabh Sharma Prakash M Swamy Vice President Managing Editor Spize TV - United Kingdom Desi Pages - Fun AsiA Pyramid Saimira Publication 2 I PYRAMID SAIMIRA I Corporate News 2007 - 2008 PYRAMID SAIMIRA I Corporate News 2007 - 2008 I 3 www.reportjunction.com Company Overview Business Structure Pyramid Saimira Theatre Limited - Exhibition Listed on BSE, NSE Subsidaries & Associates Pyramid Saimira Entertainment America - Exhibition Pyramid Saimira Entertainment Limited. Singapore - Distribution Pyramid Saimira Content Distribution Private Limited - Distribution Aurona Technologies - Gaming & Animation Pyramid Saimira Production Services Ltd. - Post Production Dimples Cine Advertising - Marketing & Advertising Saimira Premier Theatre Pvt. Ltd. - Realty Company Pyramid Saimira Production International Ltd. - Movies & TV Content Production Saimira Access Technologies Ltd - Web based services Spize TV – DTH Platform Joint Ventures Pyramid Saimira Theatre Chain (Malaysia) Sdn Bhd - Exhibition Pyramid Longzhe Culture & Theatre (China) - Exhibition 4 I PYRAMID SAIMIRA I Corporate News 2007 - 2008 PYRAMID SAIMIRA I Corporate News 2007 - 2008 I 5 www.reportjunction.com Company Overview Peer Comparison Exhibition Group Performance (2007 - 08) INR in Lacs Operational data Revenue EBIDTA PAT Particulars PSTL PVR INOX Fame India Cinemax Adlabs Mar-07 Mar-08 Mar-07 Mar-08 Mar-07 Mar-08 Mar-07 Mar-08 Mar-07 Mar-08 Mar-07 Mar-08 Consolidated 97,098 18,617 11,430 Theatres 230 715 19 24 14 22 11 15 10 18 32 62 Screens 265 765 68 97 51 76 39 54 33 52 105 166 PSPIL 5,853 439 288 Seats 154,000 486,258 17,710 24,830 15,251 23,199 12,013 N.A 9,220 14,004 N.A 62,728 PSEL 15,905 6,709 5,884 As on 31st Mar’08 PSTL has 44 Multiplexes containing 94 screens under its operational management Business Source: Data available in the web/Moneycontrol Structure PSPSL 1,977 83 56 Financial Data In Rs. Million Aurona 710 (413) (549) Particulars PSTL PVR INOX Fame India Cinemax Adlabs Dimples 1,986 203 106 March-07 March-08 March-07 March-08 March-07 March-08 March-07 March-08 March-07 March-08 June-07 March-08 (15 months) (9 months) PSTC 4,988 111 69 Revenue 1,647.60 7,493.05 2,063.50 2,774.80 1620.4 2,175.10 609.30 886.60 557.30 785.90 3,939.20 3,231.30 EBIDTA 198.53 1,142.01 350.20 545.10 454.00 548.20 169.40 216.10 182.80 191.00 2,018.50 1,579.40 PSEA 1,194 118 60 PAT 134.33 578.73 105.60 210.70 247.9 264.50 98.3 124.20 72.70 82.00 854.30 459.10 EPS(Rs.) 6.23 20.47 4.16 8.83 4.13 4.29 3.11 3.57 2.59 2.93 21.46 9.95 Source: Data available in the web/Moneycontrol 2006 - 07 2007 - 08 Financial ROCE 25.11% 28.27% Indicators Peer Comparison EPS 6.23 20.47 Production Operational data Q1 Q2 Particulars PSPIL Balaji Telefilms UTV Ashtavinayak GV films No. Of Screens 802 745 March-08 March-08 March-08 March-08 March-08 No. of Footfalls (Lacs) 602.85 628.94 PSTL Standalone Number of hours 133.5 1,571 NA NA NA Number of films 5 3 NA NA NA Average Revenue 41.49 40.11 FY 2008-09 Box Office 30.25 29.27 Financial Data In Rs. Million Food & Beverages 11.24 10.84 Particulars PSPIL Balaji Telefilms UTV Ashtavinayak GV films No. of seats per show (Lacs) 5.09 4.69 March-08 March-08 March-08 March-08 March-08 Average Occupancy (%) 33.72 35.90 Revenue 585.30 3,477.80 2,965.20 971.50 2123* EBIDTA 43.90 1,464.80 301.30 828.60 37.10 Top Line (Lacs) 25,027.81 25,239.21 PAT 28.80 879.30 44.80 136.80 14.00 EBIDTA (Lacs) 2,819.56 2,443.55 EPS(Rs.) 1.56 13.48 1.80 13.64 0.04 EBIDTA Margin (%) 11.27 9.68 Inlcudes stock adjustment of Rs.