Investor Presentation May 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 Forum Neighbourhood Mall, Bengaluru DISCUSSION SUMMARY . INDUSTRY OVERVIEW . COMPANY OVERVIEW . COMPETITIVE ADVANTAGE & O U T L O O K . ANNEXURE 3 CR2, Nariman Point, Mumbai 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 India US China Japan France UK S. Korea Spain Germany Italy China India US France Mexico UK Japan S. Korea Germany Russia -400 However, India’s Screen Density is One of the Lowest Screens / Million population 125 95 80 60 57 40 37 26 25 12 10 8 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 Indian Film Industry Displays Steady Performance Trends In Rs. Billion 250.0 236.1 194.2 200.0 174.5 155.5 150.0 100.0 130.0 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. - . 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 BOX OFFICE COLLECTIONS 8 - 1 - 2 1 1 6 1 - 1 10 1 DRIVEN BY WIDER SCREEN 4 9 8 1 1 6 7 7 2 - 5 5 - - 2 3 RELEASES AND FACILITATED BY - 1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 May-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 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 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 70 514 400 702 742 598 61 200 447 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 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 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 141 Properties GUJARAT | 20 Properties | 81 Screens WEST BENGAL | 15 Properties | 59 Screens ODISHA | 4 Property | 14 Screens MAHARASHTRA | 28 Properties | 130 Screens 583 CHHATTISGARH | 2 Properties | 8 Screens Screens GOA | 4 Properties | 14 Screens TELANGANA | 2 Properties | 11 Screens KARNATAKA |11 Properties | 45 Screens ANDHRA PRADESH | 8 Properties | 33 Screens 137,365 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 Highest Ever New Screen Openings for First National Chain the Industry in a Year in the Industry to be 85 Screens Net Debt Free Highest Ad Revenue Growth Rate in the Highest “EBITDA to Industry for Capital Invested” Ratio 8 consecutive in the Industry for FY19 quarters 22% 24 HIGHEST YEARLY HIGHEST YEARLY HIGHEST YEARLY FOOTFALLS ATP SPH 6.25Crs Rs.197 Rs.74 HIGHEST YEARLY HIGHEST YEARLY HIGHEST YEARLY REVENUE EBITDA PAT Rs.1,692Crs Rs.309Crs Rs.133Crs 25 26 Revenue from Operations 600 500 400 48% 300 479 200 324 100 - Q4FY18 Q4FY19 1,692 1,348 1,161 1,221 1,800 895 1,600 1,400 1,200 26% 1,000 800 1,692 600 1,348 FY15 FY16 FY17 FY18 FY19 400 200 - FY18 FY19 All figures in INR Crs., unless specified 27 Earnings Before Interest, Tax, Depreciation and Amortization [EBITDA] 20% EBITDA EBITDA Margin 18% 120 25% 18% 20% 16% 100 122% 20% 16% 80 16% 14% 15% 60 14% 10% 14% 97 40 5% 12% 20 44 12% - 0% Q4FY18 Q4FY19 10% 309 8% 210 6% EBITDA EBITDA Margin 189 18% 350 20% 146 4% 16% 18% 123 300 47% 16% 250 14% 2% 12% 200 10% 150 309 8% 0% 100 210 6% 4% 50 FY15 FY16 FY17 FY18 FY19 2% - 0% EBITDA EBITDA Margin % FY18 FY19 All figures in INR Crs., unless specified Note: EBITDA excludes Other Income (non-operating) 28 Profit after tax [PAT] PAT PAT Margin 10.0% 8.5% 50.0 17.8% 20.0% 140 7.9% 45.0 18.0% 7.0% 8.0% 40.0 16.0% 35.0 10.0% 14.0% 30.0 #57.7 12.0% 25.0 120 6.0% 10.0% 20.0 # 48.1 8.0% 15.0 -17% 6.0% 10.0 4.0% 4.0% 5.0 2.0% 100 2.5% 2.2% - 0.0% 2.0% Q4FY18 Q4FY19 80 0.0% 133 60 -2.0% 115 PAT PAT Margin -4.0% 160.0 10.0% 40 81 7.9% 9.0% 140.0 8.5% 16% 8.0% -6.0% 120.0 7.0% 100.0 6.0% 20 80.0 5.0% -8.0% # 31 4.0% 60.0 # 133.5 20 114.6 3.0% 40.0 2.0% - -10.0% 20.0 1.0% FY15 FY16 FY17 FY18 FY19 - 0.0% FY18 FY19 PAT PAT Margin % All figures in INR Crs., unless specified # Includes tax write back of Rs.54crs (FY18) and Rs.5crs (FY19) 29 R e v e n u e s - Segment Breakup 600 479 500 28 43 400 22% 324 2,000 123 300 23 1,800 1,692 33 29% 78 1,600 105 200 1,348 176 59% 1,400 284 1,221 100 1,161 101 436 190 1,200 50% 91 92 139 96 0 1,000 895 91 306 284 71 266 Q4FY18 Q4FY19 800 81 2000 600 191 975 1800 1692 400 713 748 802 552 1600 105 200 1348 176 1400 - 3% 101 FY15 FY16 FY17 FY18 FY19 1200 139 436 1000 306 27% 800 600 42% 975 400 802 22% NBOC F & B Advertising Others 200 0 FY18 FY19 All figures in INR Crs., unless specified 30 Footfalls and Occupancy Rate 200 33% 31% 180 28% 800 30% 26% 28% 160 23% 700 29% 28% 25% 140 42% 18% 26% 180 600 25% 120 13% 20% 100 126 8% 500 80 3% 400 15% Q4FY18 Q4FY19 300 625 534 537 533 10% 700 33% 200 411 28% 600 5% 26% 28% 100 500 23% 400 0 0% 17% 18% 300 625 FY15 FY16 FY17 FY18 FY19 533 13% 200 Footfalls Occ% 8% 100 - 3% FY18 FY19 All figures in Lakhs, unless specified 31 Average Ticket Price [ATP] 200 180 160 140 120 100 193 189 80 60 40 -2% 20 - Q4FY18 Q4FY19 193 197 178 164 170 200 180 160 140 120 100 193 2% 197 FY15 FY16 FY17 FY18 FY19 80 60 40 20 - FY18 FY19 *W.e.f 1st Jan 2019, GST rate on tickets is reduced from 28%/18% to 18%/12%, thereby affecting the YoY ATP growth.