Prime Focus Limited Q1 FY16 Investor Presentation November 2015 Safe Harbor Certain statements in this document may be forward-looking statements. Such forward- looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Prime Focus will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. 2 Q1 FY16 Earnings Presentation Agenda I. Q1FY16 Performance...4-12 II. About us....13-16 III. Annexure - Financials.......17-19 - Shareholding pattern......20 3 Q1 FY16 Earnings Presentation Strong Performance on Financial as well as Operational fronts Delivering profitable growth, with all businesses on accelerated growth path Revenues up Revenues Creative Services: World’s largest integrated services powerhouse Delivered movies like The Martian, Spectre, Bridge of Spies, Rs. 4,486 mn Paranormal Activity: The Ghost Dimension & Chronicles of the Ghostly Tribe Crossselling opportunities continue to materialise; VFX + 3D for Batman V Superman and Alice Through the Looking Glass etc. PFW's 'DeepGen' Stereo Tech recognised with AIS Lumiere™ 26% Technology Award Robust Order book includes projects such as: Inferno, Batman V Rs. 3,570 mn Superman, Geostorm, The Huntsman, Pan and Star Trek Beyond Driven by strong growth in Creative & India FMS: Distinct Leadership in fast growing Indian M&E market Tech/Tech Enabled Services revenues Revenues up Delivered several marquee projects including Katti Batti, Shaandaar, EBITDA Margin Singh is Bling, etc Robust Order book with high visibility 16.4% • Dilwale, Bajirao Mastani, Raees, Jagga Jasoos, etc. PFT: Continues on non-linear accelerated growth curve Won two Platinum Awards as part of the 2015 MarCom Awards competition for 'Digital Next' campaign CLEAR TM provided workflow solutions to 11 of the winners at the 2015 Emmy Award 4.1% Signed multiple new customers in India and North America – robust Benefits of cost consolidation & order book and a healthier than ever order pipeline demonstrate 4 revenue synergies continue to accrue continued momentum in the business with integration efforts Q1 FY16 Earnings Presentation 26% revenue growth in a seasonally slow summer quarter Robust growth across all segments along with integration efforts facilitates significant margin expansion Figures in Rs Million; Consolidated financials Personnel costs as % Net Revenues of revenues EBITDA / Margin Personnel Costs As % of Revenues EBITDA EBITDA Margin 3,500 100.0% 800 18.0% 5,000 737 4,486 90.0% 16.0% 4,500 2,923 700 16.4% 3,000 80.0% 4,000 14.0% 3,570 600 2,459 70.0% 3,500 2,500 12.0% 500 60.0% 3,000 68.9% 65.2% 10.0% 2,000 50.0% 400 2,500 8.0% 26% 40.0% 2,000 300 1,500 6.0% 30.0% 1,500 200 144 4.1% 4.0% 20.0% 1,000 1,000 100 2.0% 10.0% 500 500 0.0% 0 0.0% - Q1FY15 Q1FY16 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Revenue up 26% YoY in the quarter driven by strong performance in 3D and VFX Vancouver VFX facility now operational with good capacity utilization Personnel cost as percentage of revenues reduced from 68.9% to 65.2% YoY as globalization continues EBITDA Margin for the quarter increased to 16.4% from marginal performance year ago Integration & one time expenses for the quarter at Rs.123mn; majority of Integration expenses behind and these will taper off further going forward PBT affected by steep rise in Depreciation & Amortization Depreciation at Rs. 621mn – increase primarily on account of the mergers during the last year 5 Note: From March-15 Revenues from tax credits in Vancouver, which was earlier netted off against personnel cost is reclassified as Revenue. Q1 FY16 Earnings Presentation Q1FY16 Segmental Analysis: All business on an accelerated growth path Segment-wise revenues Figures in Rs. Million; Consolidated financials Q1FY15 Q1FY16 3,419 2,684 27% 50% 702 468 253 388 Creative Services Tech / Tech Enabled Services India FMS * Segment-wise EBITDA Segment-wise EBITDA Margins Q1FY15 Q1FY16 Creative Services Tech / Tech Enabled Services India FMS * 391 47% 40% 26% 180 183 21% 111 100 101 11% 4% Creative Services Tech / Tech Enabled India FMS * Q1FY15 Q1FY16 Services Note: 6 *Q1FY16 includes RMW FMS financials, hence YoY financials are not comparable Reported EBITDA and Revenues may not tally with Segmental breakup due to intergroup eliminations Q1 FY16 Earnings Presentation Prime Focus delivers key projects in Q1 including current box office hits International Bollywood Spectre The Martian TVCs Bridge of Spies Paranormal Activity: Chronicles of the The Ghost Dimension Ghostly Tribe 7 Q1 FY16 Earnings Presentation Strong pipeline of ongoing projects in PFW & DNeg Batman v Superman Inferno Geostorm The Hunger Alice Through the Games: Looking Glass The Huntsman Mockingjay-Part 2 In the Heart of The Brothers the Sea Grimsby 8 Q1 FY16 Earnings Presentation Strong pipeline of ongoing projects in PFL Dilwale Rocky M. S. Dhoni: The Handsome Untold Story Prem Ratan Dhan Raees Jagga Jasoos Payo MohenJo Daro Tamasha Bajirao Mastani 9 Q1 FY16 Earnings Presentation PFT continues to grow at non-linear growth rate Revenue & EBITDA Margin Revenue by Contract type 40% 1,000 33% 32% 27% 800 26% 26% 26% 30% Project 713 702 21% 579 702 Based 600 488 30% 429 468 20% 400 10% 200 Annuity 70% - 0% Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Revenue up 50% YoY Revenue by Geography EBITDA margin continue to be in range of 26-28% in-spite of sales & marketing and business development spends Won two Platinum Awards as part of the 2015 MarCom Awards competition for a sales collateral, part of 'Digital Next' campaign ROW On track in integration and enhancement of DAX functionality to its 36% Production Cloud module Multiple new clients added in India and offshore India Order pipeline at the healthiest level ever 64% 10 Q1 FY16 Earnings Presentation Debt profile Consolidated debt increased to $172mn (Rs.11,377mn) in Sep-15 from $163mn (Rs.10,370mn) in Jun- 15 • Cash and Cash Equivalents / Deposits at Rs. 900mn at the end of Sep-15 Increase in Debt is on account of New Term Loan at DNeg and increase in DNeg O/D facility Debt Composition Geographical break-up ($mn) Financial India (dollar Leases, 4% linked), Working 16.2 SCPE NCD, Capital, 24% 21% New Tax Discounting Overseas, Facility, 2% 71.2 New PFL NCD, 4% India (rupee LAS, 3% linked), Term 84.7 Loans, 9% Property Loans, 9% PFT OCD, 4% DNeg Term DNeg O/D DNeg Loan, 5% facilities, 9% Leases, 5% $1 = Rs. 66.13 Consolidated debt - $172mn (Rs. 11,377mn) 11 Q1 FY16 Earnings Presentation Nearing Phase 1 completion; operating performance ahead of plan EBITDA Margin at 15% EBITDA Margin up by 2-4% EBITDA Margin up by 4-5% Phase 1 Phase 2 Phase 3 • Bundled offering of VFX & 3D • Leverage strength of • Partner of choice for M&E services conversion services in movies like WorldSourcing model with across Hollywood, Bollywood & Avengers: Age of Ultron, Terminator enhanced execution from tax other major markets like China advantaged and lower cost centres and many more in ongoing projects • Global scalability of PFT’s • Cost Consolidation post merger by • Bundled offering of VFX & 3D enhanced Cloud based Media closing its London and Vancouver conversion services ERP platform for content production, broadcast and VFX operations & pruned • Increase profitability of Indian post exhibition segments operations in India as well as production and visual effects elimination of duplicated overheads business with consolidation • Optimize capacity utilization and • Double Negative Vancouver facility maximize delivery from tax is Operational, Mumbai facility will months 24-36 advantaged & low-cost facilities FY15 (12 months) (12 FY15 be fully operational in coming 2 months 18-24 quarters; revenue synergies will further enhance in coming quarters • Divestiture of non-core UK post production business to remove the drag on consolidated results • Increase revenue pipeline of PP services and low-hanging cost synergies 12 Q1 FY16 Earnings Presentation About us PFL: World’s Largest Integrated Media Services player •‘Creative cum tech’ combination • Increasing presence across all • Acceleration via M&A helps PFL emerge as only major content markets with over catapulting to global dominance player to provide full bouquet of 80% of revenues from outside - successful Integration of creative and technology based India in FY15 – we service our Double Negative-PFW , PFT- media services – new global clientele from 16 cities DAX mergers & completion of businesses (VFX, 3D & PFT) across the globe PFL-RMW Film and Media already contributing over 90% of services merger have rewritten revenues the competitive landscape 14 Q1 FY16 Earnings Presentation Fuelling success with marquee clients across the globe Creative services Technology services Leading Hollywood and Bollywood studios Leading broadcasters, studios, brands, sports and digital businesses 15 Q1 FY16 Earnings Presentation ‘WorldSourcing’ model providing unmatched competitive edge 16 4 continents | 5 time zones | 16 locations | 24/7 – 365 days Q1 FY16 Earnings Presentation Annexure Consolidated Profit & Loss Statement Particulars (Rs Million) Q1 FY16 Q1 FY15 % YoY Q4 FY15 % QoQ FY 15 Net sales / income from operations 4,486 3,570 26% 5,182 -13% 16,076 Total Expenditure 3,965 3,458 15% 3,956 0% 13,291 Personnel Cost (including technician fees) 2,923 2,459 19% 2,723 7% 9,541 Other Expenditure 1,042 999 4% 1,233 -16% 3,750 EBITDA 521 112 365% 1,226 -58% 2,785 Foreign exchange gain/(loss) 217 32 568% -364 NM -373 EBITDA (including Exch.