Inox Leisure Limited

INOX LEISURE LIMITED

QUARTERLY INVESTOR UPDATE Q4 & FULL YEAR FY15

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 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

 Q4 & FY15 RESULT HIGHLIGHTS  RESULT ANALYSIS  REVENUE ANALYSIS  KEY OPERATIONAL METRICS  BALANCE SHEET UPDATE  NEW PROPERTIES OPENED  PAN INDIA PRESENCE  NEW SCREENS PIPELINE  CONTENT PIPELINE  SHAREHOLDING STRUCTURE  FINANCIAL SUMMARY  ANNEXURE

NOTE: Q4 FY15 & FY15 Figures include Satyam Cineplexes Ltd. which became wholly owned subsidiary of the company on 8th Aug 2014

3 Q4 & FY15 – RESULTS HIGHLIGHTS

Q4 FY15 YoY ANALYSIS REVENUES* EBITDA ** & EBITDA MARGIN PAT & PAT MARGIN 0.8% 2,177.5 8.7% 1,883.0 4.8% -1.9%

162.9 15.4 105.1 16 % 36 % -40.6 Q4 FY14 Q4 FY15 Q4 FY14 Q4 FY15 Q4 FY14 Q4 FY15 EBIDTA EBIDTA % PAT PAT % FY15 YoY ANALYSIS REVENUES* EBITDA ** & EBITDA MARGIN PAT & PAT MARGIN

10,168.1 14.0% 4.3% 2.0% 8,688.3 12.1% 369.4 1,219.6 1,227.7 200.4 17 % 1 % 46 %

FY14 FY15 FY14 FY15 FY14 FY15 EBIDTA EBIDTA % PAT PAT % Note: * Revenue from Operations, ** EBIDTA Excl. Other Income In Rs. Mn 4 Q4 & FY15 – REVENUE ANALYSIS

Q4 FY15 YoY ANALYSIS FY15 YoY ANALYSIS REVENUES* BREAKUP REVENUES* BREAKUP

2,177.5 10,168.1 712.1 1,883.0 257.3 8,688.3 18 % 814.9 134.9 91 % 197.9 Healthy GBOC and 603.9 161.3 F&B Revenues 495.5 1,910.3 374.3 1,623.3 342.0 23 % 65 %

9 % Increasing Share of 18 % Advertising & Other 6,730.8 1,244.9 1,348.0 5,965.6 8 % Revenues 13 %

Q4 FY14 Q4 FY15 FY14 FY15 Gross Box Office Food & Beverages Gross Box Office Food & Beverages Advertising Other Operating Revenues Advertising Other Operating Revenues % Share Q4 FY14 Q4 FY15 % Share FY14 FY15 Gross Box Office 66.1% 61.9% Gross Box Office 68.7% 66.2% Food & Beverages 18.2% 17.2% Food & Beverages 18.7% 18.8% Advertising 8.6% 9.1% Advertising 5.7% 8.0% Other Operating Revenues 7.2% 11.8% Other Operating Revenues 7.0% 7.0% Note: * Revenue from Operations In Rs. Mn 5 Q4 & FY15 – KEY OPERATIONAL METRICS

FOOTFALLS & OCCUPANCY RATE FOOTFALLS & OCCUPANCY RATE OF COMPARABLE PROPERTIES

28% 25% 28% 26% 23% 20% 23% 20% 37.6 38.6 41.1 34.3

8.2 8.4 8.2 13 % 7.1 9 % 2 % 6 %

Q4 FY14 Q4 FY15* FY14 FY15* Q4 FY14 Q4 FY15 FY14 FY15 Footfalls (Mn) Occupancy (%) Footfalls (Mn) Occupancy (%) Footfalls with Management Properties - Q4 FY15: 8.7 mn, FY15: 42.6 mn

AVERAGE TICKET PRICE (ATP) AVERAGE TICKET PRICE (ATP) OF COMPARABLE PROPERTIES

164 161

158 156 156 Sustained Growth in 153 Average Ticket Prices 152 153

3 % 5 % 1 % 3 %

Q4 FY14 Q4 FY15* FY14 FY15* Q4 FY14 Q4 FY15 FY14 FY15 ATP (Rs) ATP (Rs)

Note: All the above charts exclude managed properties.

6 Q4 & FY15 – KEY OPERATIONAL METRICS

FOOD & BEVERAGES – SPEND PER HEAD (SPH) FOOD & BEVERAGES – CONTRIBUTION (%)

77.0% 55 76.0% 75.0% 74.0% 49 53 49 Strong Increasing Pickup in F&B F&B spend Profitability

8 % 12 %

Q4 FY14 Q4 FY15* FY14 FY15* Q4 FY14 Q4 FY15* FY14 FY15* SPH (Rs) F & B Contribution (%)

ADVERTISING REVENUES PER OPERATING SCREEN OTHER OPERATING REVENUES PER OPERATING SCREEN

2.3 2.1 Strong Pickup 2.0 1.7 in Advertising Revenues 0.72 0.56 0.56 0.47 35 % 53 % 4 %

Q4 FY14 Q4 FY15* FY14 FY15* Q4 FY14 Q4 FY15* FY14 FY15*

Advertising Revenues Other Operating Revenues

Note: For FY15 number of screens are 355 (excluding management) In Rs. Mn 7 Q4 & FY15 – KEY OPERATIONAL METRICS

ENTERTAINMENT TAX - % OF GBOC FILM DISTRIBUTOR SHARE (%)

18.0% 17.8% 17.8% 43.8% 41.6% 44.3% 43.8% 16.9% 36.0% 34.6% 36.4% 35.9%

Q4 FY14 Q4 FY15* FY14 FY15* Q4 FY14 Q4 FY15* FY14 FY15* E-Tax (%) Distributor Share on NBOC Distributor Share on GBOC

Entertainment Average Residual OTHER OVERHEADS (% OF REVENUES) Properties Screens Seats Tax Period 58.0% 50.0% Full Tax 81 315 83,844 46.6% 19.2% 42.7% 15.4% Exempted 10 40 10,202 2 years 12.5% 13.9% 13.0% 13.5% 12.1% 13.0% 18.0% 14.6% 12.4% 13.2% 6.5% 7.8% 5.7% 6.5% Q4 FY14 Q4 FY15* FY14 FY15* Employee Benefits Property Rent & Conducting Fees NBOC (Net Box Office Collections) , GBOC (Gross Box Office Collections) CAM, Power & Fuel, R&M Other Overheads

8 FY15 BALANCE SHEET UPDATE

Particulars FY14 FY15 OWNED PROPERTIES

Total Multiplex Total of Shareholder funds 3,909.0 6,761.9 City / Property State Screens Seats Area Area (sq ft) (sq ft) Share Capital 961.5 961.6 Reserves & Surplus 4,444.4 6,126.9 Pune Maharashtra 4 1,316 140,229 53,189 Interest in Inox Benefit Trust, -1,496.9 -326.7 Vadodara Gujarat 4 1,318 109,452 48,622 at cost Nariman Point, Mumbai Maharashtra 5 1,323 40,131 40,131 Total Debt 2,421.7 2,411.9 Jaipur Rajasthan 2 787 26,392 26,392 Other Non-Current Liabilities 571.5 347.9 Swabhumi, Kolkata West Bengal 4 1,022 46,204 46,204 Total Sources of Funds 6,902.2 9,521.7 Anand Gujarat 3 624 27,871 27,871 Corporate Office Maharashtra - - 16,000 - Goodwill on Consolidation * - 1,652.1 Total 22 6,390 406,279 242,409 Fixed Assets 6,346.6 6,681.1 Owned properties in prime locations enable savings in lease expense, thereby boosting EBITDA Other Non-Current Assets 1,475.6 1,859.7

Current Assets 758.6 1,022.2 Key Balance sheet Ratios FY14 FY15 Less: Current Liabilities 1,678.7 1,693.3 Debt : Equity 0.6 0.4 Net Current Assets -920.0 -671.2 Return on Equity (ROE) 10.3% 3.8% Total Assets 6,902.2 9,521.7 Return on Capital Employed (ROCE) 11.5% 6.1%

ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed [(Capital Employed = Equity + Total Debt) * Reflects the impact of Acquisition of Satyam Cineplexes Ltd.

9 Q4 FY15 – NEW PROPERTIES OPENED

ADDITIONS IN Q4 FY15 PROPERTIES 4 SCREENS 13 SEATS 3,340

ADDITIONS IN FY15 PROPERTIES 9 SCREENS 27 SEATS 6,781

City Centre Jyoti Mall Bhilwara Kurnool 9th Jan 2015 23rd Feb 2015 3 Screens 3 Screens 664 Seats 888 Seats

City Square Mall Margao Ajmer Goa 8th Mar 2015 31st Mar 2015 3 Screens 4 Screens 884 Seats 904 Seats

10 PAN INDIA PRESENCE

HARYANA | 6 Properties | 19 Screens 52

RAJASTHAN | 10 Properties | 31 Screens Cities

TAMIL NADU | 3 Properties | 14 Screens 98,782 Seats

11 NEW SCREENS PIPELINE

RACING TOWARDS 557 SCREENS

FY16 – PIPELINE Locations Screens Seats Vadodara 3 583 Pune 2 66 Jorhat (Management) 2 274 Bhiwadi (Management) 4 754 Goa 4 1,020 PIPELINE TARGET FY15 Rajkot 3 450 Kolhapur 4 918 POST FY16 557 SCREENS 372 SCREENS Aurangabad 3 961 128 SCREENS 138,233 98,782 SEATS Howrah 3 850 Vadodara 3 600 27,333 SEATS SEATS Thrissur 6 1,390 Bangalore 3 388 Cuttack 4 836 Chennai 8 1,700 Bangalore 5 1,328 Total 57 12,118

12 CONTENT PIPELINE – MAY 2015

Tanu Weds Manu Returns POLTERGEIST (3D) Tomorrowland Welcome to Karachi Release Date: 22nd May 2015 Release Date: 22nd May 2015 Release Date: 22nd May 2015 Release Date: 29th May 2015 Cast: R Madhvan, Kangana Ranaut, Cast: Sam Rockwell, Jared Cast: George Clooney, Britt Cast: Jackky Bhagnani, Dhanush Harris, Saxon Sharbino Robertson Arshad Warsi, Lauren Gottlieb Director: Aanand L Rai Director: Gil Kenan Director: Brad Bird Director: Ashish R Mohan Banner: Eros International Banner: Metro-Goldwyn-Mayer Banner: Walt Disney Pictures Banner: Pooja Entertainment Ghost House Pictures India Ltd. Vertigo Entertainment

Actual release dates may vary.

13 CONTENT PIPELINE – JUNE 2015

Dil Dhadakne Do Hamari Adhuri Kahani Jurrasic World (3D) ABCD 2 Release Date: 5th Jun 2015 Release Date: 12th Jun 2015 Release Date: 12th Jun 2015 Release Date: 19th Jun 2015 Cast: Farhan Akhtar, Ranveer Cast: Emran Hashmi, Vidya Cast: Chris Pratt, Judy Greer, Cast: Varun Dhavan, Shraddha Singh, Priyanka Chopra, Anushka Balan, Raj Kumar Yadav Bryce Dallas Howard, Irfan Kapoor, Prabhu Deva, Lauren Sharma, Anil Kapoor Director: Mohit Suri Khan Goutlieb Director: Zoya Akhtar Banner: Vishesh Films Director: Colin Trevorrow Director: Remo Dsouza Banner: Excel Entertainment Fox Star Studios Banner: Legendary Pictures Banner: Utv Motion Pictures Junglee Pictures Amblin Entertainment Walt Disney Pictures Mirchi Movies Limited

Actual release dates may vary.

14 SHAREHOLDING STRUCTURE

Share Price Performance Market Data As on 22.05.15 (BSE) 200 Market capitalization (Rs Mn) 14,815.9 150 Price (Rs.) 153.6 100 50 No. of shares outstanding (Mn) 96.5 0 Face Value (Rs.) 10.0 52 week High-Low (Rs.) 197.3 – 122.6

% Shareholding – Mar 2015 Key Institutional Investors at Mar-15 % Holding Public / Kuwait Investment Authority 4.73% Others, 18.52 Promoter & Macquarie Asia 4.27% Promoter Goldman Sachs India 4.25% Inox Benefit Group, 48.70 Trust, 4.51 ICICI Prudential MF 3.33% Government Pension Fund Global 2.49% DII, 7.57 Morgan Stanley 1.93%

FII, 20.70 AADI Financial Advisors LLP 1.49% Tata MF 1.04% Source: BSE * Shares held under Inox Benefit Trust reflect the Treasury Shares 15 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 % ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed [(Capital Employed = Equity + Total Debt) 16 ANNEXURE

17 DETAILED FINANCIALS CONSOLIDATED P&L STATEMENT

Particulars (In Rs Mn) Q4 FY15 Q4 FY14 YoY % Q3 FY15 QoQ % FY15 FY14 YoY % Revenue from Operations 2,177.5 1,883.0 15.6% 3,007.6 -27.6% 10,168.1 8,688.3 17.0% Entertainment Cost 227.6 221.2 2.9% 381.2 -40.3% 1,214.5 1,060.7 14.5% Exhibition Cost (Distributor 477.5 463.6 3.0% 753.7 -36.6% 2,493.2 2,234.9 11.6% Share) Food & Beverages Cost 103.5 92.3 12.1% 135.8 -23.8% 495.5 466.4 6.2% Employee Benefits Expense 169.9 123.3 37.8% 189.9 -10.5% 658.2 495.7 32.8% Property Rent, Conducting Fees 466.3 356.4 30.8% 466.7 -0.1% 1,757.8 1,372.2 28.1% and Common Facility Charges Other Expenses 627.6 463.5 35.4% 617.2 1.7% 2,321.2 1,838.8 26.2% EBITDA 105.1 162.9 -35.5% 463.1 -77.3% 1,227.7 1,219.6 0.7% EBITDA Margin % 4.8% 8.7% -382 bps 15.4% -1057 bps 12.1% 14.0% -196 bps Depreciation & Amortisation 181.0 127.7 41.8% 204.4 -11.4% 758.4 506.9 49.6% Other Income 26.0 60.6 -57.1% 41.0 -36.6% 82.7 89.5 -7.6% Finance Cost 82.7 62.0 33.4% 124.9 -33.7% 386.1 276.3 39.7% Exceptional Items 1.0 3.9 -98.7% - - 6.0 3.9 53.8% PBT -133.6 30.0 -545.7% 174.8 -175.9% 159.9 521.9 -69.4% Tax Expense -93.0 14.6 -736.3% 31.9 -391.7% -40.5 152.6 -126.5% PAT -40.6 15.4 -364.4% 143.0 -127.8% 200.4 369.4 -45.8% PAT Margin % -1.9% 0.8% -268 bps 4.8% -658 bps 2.0% 4.3% -228 bps Earnings Per Share (EPS) - 0.2 - 0.2 - 2.36 4.86 -51.4%

18 DETAILED FINANCIALS CONSOLIDATED BALANCE SHEET

Particulars (In Rs Mn) FY15 FY14 Particulars (In Rs Mn) FY15 FY14 Share Holders’ Funds: Goodwill on Consolidation 1,652.1 - 961.6 961.5 Equity Share Capital Non-Current Assets: Reserves and Surplus 6,127.0 4,444.4 Fixed Assets (Incl. CWIP) 6,681.1 6,346.6 Interest in Inox Benefit Trust -326.7 -1,496.9 Non-Current Investments 7.1 9.8 Total of Shareholder Funds 6,761.9 3,909.0 Long-Term Loans and Advances 1,813.0 1,443.3 Non-Current Liabilities: Long Term Borrowings 2,005.1 2,148.3 Other Non-Current Assets 39.6 22.5 Deferred Tax Liabilities (Net) 243.2 290.0 Total Non-Current Assets 8,540.8 7,822.3 Other Long Term Liabilities 43.3 240.1 Current Assets: Long Term Provisions 61.3 41.3 Current Investments 64.1 27.3 Total of Non-Current Liabilities 2,352.9 2,719.8 Inventories 75.9 85.9 Current Liabilities: Trade Receivables 623.2 334.2 Short-Term Borrowings 147.0 88.8 Cash and Bank Balances 134.4 165.6 Trade Payables 892.6 720.5 Short-Term Loans and Advances 106.8 127.6 Other Current Liabilities 905.6 932.2 Other Current Assets 17.7 18.1 Short-Term Provisions 155.0 210.6 Total of Current Liabilities 2,100.2 1,952.1 Total Current Assets 1,022.2 758.6 Total Equity & Liabilities 11,215.0 8,580.9 Total Assets 11,215.0 8,580.9

19 GROUP OVERVIEW STRONG PEDIGREE

. Strong legacy of more than 80 years. . Diversified businesses across industrial gases, engineering plastics, refrigerants, chemicals, cryogenic engineering, renewable energy and entertainment sectors. . More than 8,000 employees at more than 100 business units across India. . Distribution network spread across more than 50 countries around the world.

Listed Companies Other Key Companies

Gujarat Fluorochemicals Inox Leisure Inox Air Products Inox India Inox Renewables Inox Wind Limited Limited Limited Limited Limited Limited

Mcap: INR 97.4 bn Mcap: INR 67.2 bn Mcap: INR 14.8 bn . 50:50 joint venture with Air . Manufacturer of cryogenic . Engaged in the business of Products Inc., USA liquid storage and transport setting up and operating of . tanks in India wind farms . Fully integrated player in the . Largest producer (by . A film exhibition company, in Manufacturer of industrial . . wind energy market volume) of chloromethanes the business of setting up, gases in India Offers comprehensive 213 MW operational refrigerants & operating and managing a . solutions in cryogenic capacity in 3 different states . State-of-the-art 36 plants spread throughout Polytetrafluoro-ethylene in national chain of multiplexes storage, vaporization and manufacturing plants near the country India under the brand name distribution engineering Ahmedabad (Gujarat) and at ‘INOX’ . Una (Himachal Pradesh) . Pioneers of carbon credits in Has operations in India, USA, India . Present in 52 cities with 96 Canada, The Netherlands . Ability to Provide End to End multiplexes and 372 screens and Brazil Turnkey Solutions for Wind Farms

Strong sponsorship of Inox Group - Recognized and Trusted Corporate Group

20 COMPANY OVERVIEW BRIEF PROFILE

. Inox Leisure Limited (ILL), incorporated in 1999, is the 2nd 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. BUSINESS . ILL currently operates 96 properties (372 screens and 98,782 seats) located in 52 cities across India, being the only multiplex operator having such a diverse presence across pan India. OVERVIEW . The company accounts for 23% share of the multiplex screens in India and 7- 8% share of the 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 96 properties – 372 screens in FY15, virtually adding on an average 3 screens every month over the last decade.

. One of the largest multiplex chains in India. . Most diversified distribution of multiplexes in India and the only multiplex operator to have presence in more than 50 cities. KEY . Premium multiplex properties, state of the art technology and unmatched service and ambience. STRENGTHS . 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.

. Consolidated Revenues, EBITDA and PAT were Rs 10,168.1 mn, Rs 1,227.7 mn and Rs 200.4 mn in FY15 having grown at CAGR of 29%, 41% and 42% over FY11 to FY15. STRONG . Robust operating performance driven by rising footfalls, high ticket prices, highly profitable F&B service, focus on other FINANCIALS operating income. . Strong balance sheet with gross debt of Rs 2,411.9 mn, net debt of Rs 2,277.5 mn and equity of Rs 6,761.9 mn in FY15 with a D/E ratio of 0.4x.

21 COMPANY OVERVIEW TRACK RECORD OF AGGRESSIVE EXPANSION

79 372 74 68 63 310 285 257 239

32 26 22 119 14 9 91 6 76 2 3 51 35 25 8 12

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 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

22 COMPANY OVERVIEW PAN INDIA PRESENCE

52 Cities 96 Locations Well Diversified East, 8 Distribution of North, 24 East, 17 Multiplexes North, 16 across India West, 17 South, 22 West, 33 South, 11

Access to Wide Variety of Regional Content 372 Screens 98,782 Seats East, 67 North, 82 East, 17698 North, 21076 Lower Dependency

on Hindi and English South, 21852 Content South, 89 West, 134 West, 38156

23 COMPANY OVERVIEW STRONG BRAND PARTNERSHIPS

BFSI FMCG CONSUMER DURABLES AUTOMOBILES GEC ECOMMERCE OTHERS &TELECOMM.

24 FOR FURTHER QUERIES:

THANK YOU

Nayana Borthakur Ammeet Sabarwal / Nilesh Dalvi General Manager - Brand & Corporate Communication Dickenson Seagull IR Contact No: +9122 4062 6900 Contact No : +91 9819576873 / +91 9819289131 Email: [email protected] Email : [email protected] [email protected]