INOX Leisure Limited Earnings Presentation Q2 & H1 FY15 October 2014 Disclaimer This presentation includes forward-looking statements which deal with future events, including those relating to our general business plans and strategy, our future financial condition and growth prospects, and future developments in our sector and our competitive and regulatory environment. Forward-looking statements are identified by words such as ‘anticipates,’ ‘believes’, ‘estimates’, ‘may’, ‘expects’, ‘plans’, ‘intends’, ‘predicts’, or ‘continue’ and other similar expressions that indicate trends and future events. Forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results, performances or events to differ materially from the results contemplated by the relevant forward looking statement. Factors that could cause the Company's results to differ materially from those expressed in forward-looking statements include, without limitation, non-availability of good quality content, new technologies, real estate costs increases, withdrawal of entertainment tax exemption, general business and economic conditions beyond the Company's control, the consequences of competitive factors in the marketplace, results of continuous improvement and other cost-containment strategies and the Company's success in attracting and retaining key personnel. The Company undertakes no obligation to revise or update forward-looking statements as a result of new information, since these statements may no longer be accurate or timely. Snapshot Of Financials (IN R Lakhs) FY11 FY12 FY13 FY14 Q2 FY14 Q1FY15 *Q2 FY15 H1 FY14 *H1 FY15 Gross Box Office 27,614 47,190 55,876 59,656 16,750 15,656 17,996 32,967 33,652 Total Revenues 37,597 65,293 76,891 87,778 23,735 23,321 26,667 46,759 49,987 EBITDA 3,647 8,095 10,163 13,091 4,088 3,019 3,732 8,009 6,752 EBITDA Margin (%) 9.70% 12.40% 13.22% 14.91% 17.22% 12.95% 14.00% 17.13% 13.51% PAT 500 435 1,845 3,694 1,471 458 523 2,893 981 PAT Margin (%) 1.33% 0.67% 2.40% 4.21% 6.20% 1.96% 1.96% 6.19% 1.96% 3 *Includes Satyam Cineplexes Ltd. data from 8th Aug 2014 to 30th Sep 2014 New Property Openings – H1 FY15 Gurgaon Dreamz Mall, 24 th Jun 2014 Vizag Chitralayaa Mall, 4th Jul 2014 Gurgaon Dreamz Mall, 24 th Jun 2014 Vizag Chitralayaa Mall, 4th Jul 2014 3 Screens, 646 Seats 3 Screens, 635 Seats 3 Screens, 646 Seats 3 Screens, 635 Seats Jalgaon Khandesh Central, 27th Jul 2014 Faridabad EF3, 1st Sep 2014 4 Screens, 1141 Seats 3 Screens, 702 Seats 4 One of the Largest Multiplex Chains in India 17 St a t e s 5 0 Ci t i e s 9 2 Multiplexes 3 61 S cr e e n s PUNJAB UTTAR PRADESH 1 Properties | 6 Screens 3 Properties | 13 Screens 9 6 , 0 5 8 S e a t s DELHI 3 Properties | 12 Screens JHARKHAND HARYANA 1 Property | 4 Screens 6 Properties | 19 Screens RAJASTHAN 8 Properties | 25 Screens MADHYA PRADESH 4 Properties | 16 Screens GUJARAT WEST BENGAL 6 Properties | 25 Screens 14 Properties | 55 Screens ORISSA MAHARASHTRA CHHATTISGARH 1 Property | 3 Screens 21 Properties | 85 Screens 2 Properties | 8 Screens TELANGANA 2 Properties | 11 Screens GOA 1 Property | 4 Screens ANDHRA PRADESH 6 Properties | 23 Screens KARNATAKA 10 Properties | 38 Screens TAMIL NADU 3 Properties | 14 Screens 5 Includes Satyam Cineplexes Ltd. Pan India Presence 5 0 C i t i e s 92 Locations 17 14 32 9 10 18 21 21 East West South North East West South North 3 61 S c r e e n s 96,058 Seats 130 70 86 75 37,252 37,252 18,631 18,631 20,964 20,964 19,211 East West South North East West South North Well distributed mix of properties 6 Includes Satyam Cineplexes Ltd. Footfalls Occupancy rates Footfalls Footfalls With (Lakhs) Management 33% 32% 386 28% 28% 353 Locations 25% 26% 26% 26% 307 23% 258 215 210 *Q2FY15: 116 Lakhs *H1FY15: 218 Lakhs 108 99 112 * * * * *Includes Satyam Cineplexes Ltd. data from 8th Aug 2014 to 30th Sep 2014 Occupancy of Comparable Properties Footfalls of Comparable Properties 33% 32% (Lakhs) 27% 27% 213 183 106 93 Q2FY14 Q2FY15 H1FY14 H1FY15 Q2FY14 Q2FY15 H1FY14 H1FY15 7 Note: All the above charts Excludes Managed properties Robust Ticket Prices (ATP) ATP Trend ATP of Comparable Properties 160 162 161 159 160 159 157 156 156 156 155 155 152 Q2FY14 Q2FY15 H1FY14 H1FY15 * * Note: Excludes Managed properties *Includes Satyam Cineplexes Ltd. data from 8th Aug 2014 to 30th Sep 2014 • Inox brand enjoys a premium positioning amongst urban consumers • Prime locations provide strong pricing power • Increasing contribution of 3D movies – 3D tickets are priced at a premium of 15-20 % over 2D tickets 8 Highly Profitable F&B Service SPH Growth – overall F&B Cost (% of F&B revenues) 56 53 54 32% 31% 30% 47 49 48 48 26% 27% 27% 41 44 24% 23% 23% 12% SPH Growth * * * * 9 *Includes Satyam Cineplexes Ltd. data from 8th Aug 2014 to 30th Sep 2014 Enhanced Focus on Other Operating Income Other operating revenues per operating screen (INR Lakhs) Ad Revenue Other Operating Revenue 20.8 13.0 12.6 9.1 7.7 10.4 17.1 5.1 12.7 12.6 5.1 4.7 7.9 7.0 9.6 4.1 5.1 5.2 FY11 FY12 FY13 FY14 Q2FY14 Q1FY15 * Q2FY15 H1FY14 *H1FY15 10 *Includes Satyam Cineplexes Ltd. data from 8th Aug 2014 to 30th Sep 2014 By Leveraging Brand Partnerships 11 E-Tax Trend E-Tax No. of prop Screens Seats Average Residual Period Full Tax 73 289 76,796 Exempted 13 52 13,593 2 years Includes Satyam Cineplexes Ltd. 17.8% 17.6% 18.3% 17.8% 17.7% 18.2% 17.8% 17.8% 18.0% E-Tax as a % of Gross Box Office Collection * * 12 *Includes Satyam Cineplexes Ltd. data from 8th Aug 2014 to 30th Sep 2014 Film Distributor Share Payout Trend Distributor Share on NBOC Distributor Share on GBOC 43.3% 43.7% 44.3% 44.3% 44.1% 44.0% 43.9% 44.0% 44.0% 35.6% 36.0% 36.2% 36.4% 36.3% 36.0% 36.1% 36.2% 36.0% FY11 FY12 FY13 FY14 Q2FY14 Q1FY15 *Q2FY15 H1FY14 *H1FY15 *Includes Satyam Cineplexes Ltd. data from 8th Aug 2014 to 30th Sep 2014 NBOC – Net Box Office Collections GBOC – Gross Box Office Collections 13 Overheads Analysis (Expenses as a % of Total Revenues) Employee Benefits Expense Property Rent and Conducting Fees CAM, Power&Fuel and R&M Other Overheads 14% 14% 14% 13% 13% 12%12% 12% 12% 12% 12%12%12% 12% 12% 12% 12% 12% 12% 11% 11% 11%11%11% 11%11%11% 7% 6% 6% 6% 6% 6% 6% 5% 5% FY11 FY12 FY13 FY14 Q2FY14 Q1FY15 *Q2FY15 H1FY14 * H1FY15 14 *Includes Satyam Cineplexes Ltd. data from 8th Aug 2014 to 30th Sep 2014 Financial Summary Profit and Loss Statement I NR Lakhs FY11 FY12 FY13 FY14 Q2FY14 Q1FY15 *Q2FY15 H1FY14 *H1FY15 Gross Box Office 27,614 47,190 55,876 59,656 16,750 15,656 17,996 32,967 33,652 F&B Revenues 6,020 11,391 14,176 16,233 4,470 4,721 5,077 8,979 9,798 Ad Revenues 1,724 2,917 3,244 4,955 1,104 1,496 1,781 1,884 3,278 Other Revenues 2,239 3,795 3,595 6,934 1,412 1,448 1,812 2,928 3,260 Total Revenues 37,597 65,293 76,891 87,778 23,735 23,321 26,667 46,759 49,987 Entertainment Tax 4,923 8,304 10,204 10,607 2,970 2,857 3,200 5,865 6,057 Distributor Share 10,294 18,032 20,994 22,349 6,220 5,840 6,781 12,265 12,621 F&B Cost 1,951 3,487 4,259 4,664 1,329 1,225 1,337 2,680 2,562 Payroll Cost 2,609 3,945 4,269 4,957 1,171 1,369 1,614 2,334 2,983 Other Expenses 14,173 23,431 27,001 32,110 7,957 9,010 10,002 15,605 19,012 Total Expenses 33,950 57,198 66,728 74,687 19,647 20,301 22,935 38,749 43,236 EBITDA 3,647 8,095 10,163 13,091 4,088 3,019 3,732 8,009 6,752 EBITDA Margin (%) 9.70% 12.40% 13.22% 14.91% 17.22% 12.95% 14.00% 17.13% 13.51% Depreciation 2,295 3,747 4,308 5,069 1,284 1,809 1,921 2,492 3,730 Interest 1,619 2,426 2,670 2,763 744 645 1,140 1,481 1,785 Exceptional Items (561) 1,798 250 39 - 50 - - 50 Tax (13) 263 1,091 1,526 590 58 149 1,142 206 Minority share in loss 193 574 - - - - PAT 500 435 1,845 3,694 1,471 458 523 2,893 981 15 *Includes Satyam Cineplexes Ltd. data from 8th Aug 2014 to 30th Sep 2014 Strong Project Pipeline Sl No. City No. of Screens Est. Launch 1 Vizag 2 Q3FY15 2 Jamnagar 5 Q3FY15 3 Bhilwara 3 Q3FY15 4 Lucknow 4 Q3FY15 5 Delhi 1 Q3FY15 6 Kurnool 3 Q3FY15 7 Ajmer 3 Q3FY15 FY15 8 Goa 4 Q4FY15 9 Pune 2 Q4FY15 10 Pune 6 Q4FY15 11 *Bhiwadi 3 Q4FY15 12 Jaipur 4 Q4FY15 13 Rajkot 3 Q4FY15 14 Vadodara 3 Q4FY15 Total Screens 46 Post FY15 Total Screens Post FY15 136 Post FY15 *Management Property 16 Strong Content Pipeline – Oct 2014 Cast: Shah Rukh Khan, Abhishek Cast: Ben Affleck, Rosamund Pike Cast: Brad Pitt, Shia LaBeouf, Logan Cast: Rekha, Sharman Joshi, Randhir Bachchan, Boman Irani, Sonu Sood, Director: David Fincher Lerman Kapoor, Anupam Kher Deepika Padukone, Jackie Shroff, Banner: Fox Star Studios Director: David Ayer Director: Indra Kumar Vivaan Shah Banner: Le Grisbi Productions, Banner: Maruti International Director: Farah Khan QED International, Banner: Red Chillies Entertainment LStar Capital, Crave Films 17 Strong Content Pipeline – Nov 2014 Cast: Akshay Kumar, Paresh Raval, Cast: Randeep Hooda, Nandana Sen, Cast: Ranveer Singh, Ali Zafar, Cast: Saif Ali Khan, Illiana D Cruz, Anupam Kher, Annu Kapoor Paresh Raval, Ashish Vidhyarthi, Sachin Pareeneeti Chopra, Govinda Govinda, Priety Zinta, Ranvir Shorey, Kalki Director: Abhishek Sharma Khedekar, Darshan Jhariwala Director: Shaad Ali Sahgal Director: Krishna Dk/Raj Nidimoru Banner: Cape Of Good Films Director: Ketan Mehta Banner: Yashraj Films Banner: Illuminati Films, Eros International Banner: Maya Movies, Infinity Films 18 Strong Content Pipeline – Nov 2014 Cast: Matthew Mcconaughey, Jessica Cast: Jennifer Lawrence, JoshPvr Pictures Cast: Sanjay Dutt, Emran Hashmi, Chastain, Anne Hathway, Michael Caine Ltd Hutcherson, Liam Hemsworth Kangana Ranaut,Neha Dhupia Director: Christopher Nolan Director: