Investor Presentation August 2019 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. 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. FY15 financial figures are as per IGAAP and for FY16 and thereafter are as per IND-AS. Revenues for FY15 are shown net of entertainment tax, to be consistent with the revenues under IND-AS for FY16 onwards 2 DISCUSSION SUMMARY . INDUSTRY OVERVIEW . COMPANY OVERVIEW . COMPETITIVE ADVANTAGE & O U T L O O K . ANNEXURE 1Ne ·x BRINGS TO YOU SPECTACULAR CINEMA FORMATS 3 INDUSTRY OVERVIEW 4 Strong Fundamentals & Huge Growth Potential Highest Number of Film P r o d u c e d i n t h e 2nd Highest Number Of Theatre Footfalls W o r l d in the World Footfalls in Million 2,000 2,178 2,100 1,930 1,600 1,364 1,100 791 686 581 600 300 298 269 255 226 185 208 197 176 171 169 156 146 100 .,1 .I .1 • r • India US China Japan France UK S. Korea Spain Germany Italy China India US France Mexico UK Japan S. Korea Germany Russia -400 1.• , ■ , • . • . • I, ____ .,: However, India’s Screen Density is One of the Lowest Screens / Million population 125 95 80 60 57 40 37 26 25 I 12 10 I 8 I I ,l ,I I 1 . ■ . ■ . ■ . ■ - r - , ., I US France Spain UK Germany South Korea China Japan Taiwan Thailand Brazil ____India Source: CRISIL Report, http://uis.unesco.org/en/news/cinema-data-release (2015), Industry sources and internal calculations 5 Steady Performance and Resilience IN X Indian Film Industry Displays Steady Performance Trends In Rs. Billion 236.1 250.0 _________________________________CA.GB~1% -------------------------------+ 194.2 200.0 174.5 155.5 150.0 - - 100.0 130.0 50.0 96.3 102.1 110.0 0.0 2017 2018 2019E 2021E ■ Domestic Theatrical ■ Overseas Theatrical Broadcast rights Digital/OTT rights In-cinema advertising Home Video D o m e s t i c Theatricals Constitutes 59% Of Total Film Industry 8% 4% 0% ■ Domestic Theatrical 12% ■ Overseas Theatrical 2018 Broadcast rights ■ Digital/OTT rights 59% ■ In-cinema advertising 17% ■ Home Video Source: FICCI-EY 2019 Report 6 Multiplexes Witnessing Rapid Growth 16,000 FACTORS DRIVING GROWTH IN 14,000 Number of Screens MULTIPLEXES: 12,000 10,635 10,346 . Strong demographics, rising disposable 9,951 9,601 10,000 925 9,500 9,481 9,530 1,225 incomes and discretionary spends. 1,500 2,100 8,000 2,450 2,750 2,950 . Superior location, destination and 6,000 parking facilities. 9,710 9,121 4,000 8,451 7,400 7,031 6,780 6,651 . Multiple screens in one location offer a 2,000 wider variety of content to the patrons. - T T T . Different screen sizes provide 2009 2011 2013 2015 2016 2017 2018 programming flexibility. This results in Single Screens ■ Multiplexes higher occupancy ratios. Multiplexes currently account for . State of art equipment (high quality ~ 31% market share of the screens, video and audio), superior interiors, h o w e v e r they account f o r ambience and service. ~55% of box office collections Source: FICCI-EY Report 2018 & 2019 7 Increasing Number Of INR 1bn + Movies Wider Screen Releases 8,000 6,900 7,000 6,500 6,000 5,200 5,300 5,000 4,500 4,500 4,000 3,446 3,014 3,359 2,638 3,000 2,065 2,101 1,598 2,000 1,000 1,000 - 3 Idiots Dabaang Bodyguard Ek Tha Tiger Dabaang 2 Chennai Dhoom 3 Kick P.K Bajrangi Dangal Bahubali 2 - Tiger Zinda 2.0 (2018) (2009) (2010) (2011) (2012) (2012) Express (2013) (2014) (2014) Bhaijaan (2016) The Hai (2017) (2013) (2015) Conclusion (2017) INCREASING NUMBER OF Higher Number Of INR 1 Bn + Movies MOVIES ARE GENERATING 14 3 12 MORE THAN RS 1 BN IN NET 2 10 - 2 2 1 BOX OFFICE COLLECTIONS 8 - 1 - 2 1 1 3 6 1 - 1 10 DRIVEN BY WIDER SCREEN 4 9 8 1 6 7 7 5 2 - 5 5 - - 2 RELEASES AND FACILITATED BY - 1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jul-19 DIGITISATION OF CONTENT ■ INR 1Bn to 1.99Bn ■ INR 2Bn to 2.99 Bn ■ INR 3Bn and above DELIVERY Source: Industry 8 India’s Consumption Story IN X 1,600 Population of India (Million) %Share of Population by Income Bracket 1,400 ■ Lower Class ■ Lower Middle Class ■ Middle & Affluent Class 1,200 100 1 2 .------. 6 5 90 18 22 1,000 80 42 41 70 800 t•I = I 1,429 60 43 600 1,278 50 1,107 93 928 40 80 36 400 755 30 54 20 200 35 10 22 - 0 1985 1995 2005 2015 2025 1985 1995 2005 2015 2025 Based on Annual Household Income: Lower Class: < Rs.90,000 , Lower Middle Class: Rs.90,000 to Rs.199,999 , Middle & Affluent Class: > Rs.200,000 Share of Population by Income Bracket (Million) %Share of Average Annual Household Consumption ■ Lower Class ■ Lower Middle Class ■ Middle & Affluent Class 1,200 ■ Necessities ■ Discretionary 281 55 600 -----. 1,000 19 800 8 167 454 39 45 550 52 61 600 70 514 i1I t--- I I 400 702 742 I 598 61 I 200 447 48 314 39 30 - 1985 1995 2005 2015 2025 1995 2005 2015 2025 Source: Mckinsey - Tracking the growth of Indias Middle Class - 2017 9 INOX Nehru Place, Delhi Company Overview 10 Track Record of Aggressive Expansion 1000 200 900 Marching towards Screens Properties 143 800 - - 150 118 123 600Screens700 107 96 595 600 100 79 72 68 492 500 63 468 420 400 32 372 50 22 26 310 14 279 300 9 257 2 3 6 239 200 0 119 91 76 100 51 35 25 12 8 0 - -- ■ ■ I I I I I -50 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Jul-19 Note: Includes Acquisition of 89 Cinemas in FY07, Fame in FY11 and Satyam in FY15 11 PAN India Presence IN X ONE OF THE LARGEST MULTIPLEX CHAIN OPERATOR IN INDIA PUNJAB | 2 Property | 10 Screens UTTAR PRADESH | 8 Properties | 31 Screens 19 States DELHI | 5 Properties | 16 Screens JHARKHAND | 1 Property | 4 Screens HARYANA | 6 Properties | 19 Screens 67 Cities RAJASTHAN | 13 Properties | 47 Screens MADHYA PRADESH | 5 Properties | 22 Screens Assam | 1 Property | 2 Screens 143 Properties GUJARAT | 20 Properties | 81 Screens WEST BENGAL | 15 Properties | 59 Screens ODISHA | 4 Property | 14 Screens MAHARASHTRA | 28 Properties | 130 Screens 595 CHHATTISGARH | 2 Properties | 8 Screens Screens GOA | 4 Properties | 14 Screens TELANGANA | 3 Properties | 19 Screens KARNATAKA |12 Properties | 49 Screens ANDHRA PRADESH | 8 Properties | 33 Screens 139,797 Seats KERALA |1 Property | 6 Screens TAMIL NADU | 5 Properties | 31 Screens * Includes 8 management properties with 29 screens and 7,370 seats 12 R-City Ghatkopar, Mumbai INSIGNIA – LUXURY MOVIE WATCHING EXPERIENCE 13 Atria, Worli, Mumbai 14 CR2, Nariman Point, Mumbai 15 Atria, Worli, Mumbai 16 R-City, Ghatkopar, Mumbai 17 Palm Beach, Navi Mumbai 18 INOX Epicuria, Delhi 19 INOX Metro, Mumbai 20 INOX GT Central, Jaipur 21 INOX Malad, Mumbai 22 INOX Marina Mall, Chennai 23 IN• :X L I V E IAt M O V I E ~ -x~eeclf.#t; expectationsc'.. MOST AWARDED MULTIPLEX OF THE YEAR MOST ADMIRED INOX LEISURE POPULAR MULTIPLEX OF THE MULTIPLEX MULTIPLEX ET BEST CHAIN OFTHEYEAR YEAR AT ET NOW TIMES RETAIL AT IMAX BIG GLOBAL AWARDS BRANDS ICON AWARDS FOR RETAIL 2018-19 CINE AWARDS 2018-19 2018 EXCELLENCE BEST BEST HIGHEST LUXURY BEST EMPLOYER TECHNOLOGY MARKETED STANDARDS OFTHEYEAR OFTHEYEAR BRAND AT EMPLOYER t IMAX BIG CINE KOTLER AWARD AT INTERNATIONAL FILM BUSINESS BRANDING AWARDS OF EXCELLENCE AWARDS 2018 2018-19 AWARDS2018 2018-19 24 Highest “EBITDA to Capital Invested” Ratio in the Industry Highest Q1FY20 Footfalls Growth in the Industry Highest PAT Margin in the Industry - Q1FY20 8% Highest Ad Revenue Growth 9 Consecutive CORDS Rate in the Industry for Quarters CONSISTENTLY First National Chain in the Industry to be Net Debt Free 25 Excludes Ind AS 116 impact Revenue EBITDA PAT Rs.493crs Rs.89crs Rs.41crs 19%YoY 6%YoY 11%YoY Excludes impact of Ind AS 116 Excludes impact of Ind AS 116 Ad Sales Footfalls SPH Rs.47crs 1.73crs Rs.81 18%YoY 11%YoY 6%YoY 26 BRINGS YOU INHGNIA SCAEEN:xt: Onyx 'Di11ef ,~ors SIi.NATURE WOltUl'S MOST IIIMfRSl'IE IKlll.l'S FIRST M:UO CINEl\lA IIIDIA'S FIRST MUllll.til'S FIRST EXPERIEIICE MOVIE EnRAVAGANZA! ntAT 5nMULATES All YOUR SENSES 270 DE~REE l'Jl1'01tAM-IC LED SPECJACIJLAl'I SCREEN MOYIE WATCIUKG EXPERIENCE LASER 30if., BRIGHTER AFFDROAlllf LUXURY DEDICATEll llD'S ntf LARC.E SCREEN ANO SHARPER Pi<OJECTlON EXPERIENCE FOIi THE $MARTIR GENERATION P\AY ZONE 27 Overview of IND AS-116 “Leases” LIVE l'/4MOVIE New Accounting Standard-116 on Leases is effective from 1st April 2019 Ind AS 116 Transitional Impact No Distinction between Finance and Operating Lease now.