Investor Presentation February 2020 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 SUMMARY current beliefs, assumptions, expectations, estimates, and projections of the management of ILL about the business, industry and markets in which ILL operates. • INDUSTRY OVERVIEW These statements are not guarantees of future performance, and are subject to known and • COMPANY OVERVIEW 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. • COMPETITIVE ADVANTAGE & OUTLOOK 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 • ANNEXURE 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 it is as per INDAS. Revenues for FY15 are shown net of entertainment tax, to be consistent with the revenues under INDAS. 2 Exceeding Expectations BEST i BESTTECHNOLOGY 1 INDIA'STOP I INDIA'S MOST 1 1 lj TECHNOLOGY ADOPTER ) MULTIPLEX CHAIN TRUSTED CINEMA OFTHEYEAR 1 OFTHEYEAR \) I OFTHEYEAR DISPLAY BRAND IMAX BIG CINE ,I I I t AT IMAX BIG ) AT IMAX BIG j AWARDS CINE AWARDS CINE AWARDS 2018 2019 2019 ,. , -..1) BEST EMPLOYER I NOX LEI SURE POPULAR I MULTIPLEX I OFTHEYEAR I MULTIPLEX I I ET BEST I; ; CHAIN OFTHEYEAR \; AT EMPLOYER \) TIMES RETAIL I,; t AT IMAX BIG 1 BRANDING I,; BRANDS ICON AWARDS ,, CINE AWARDS J AWARDS 2018-19 2018-19 2018 2018-19 MOST ADMIRED BEST BEST HIGHEST LUXURY MULTIPLEX OFTHE TECHNOLOGY MARKETED 11 STANDARDS / 1, MAPIC INDIA MOST /; YEAR AT ET NOW OFTHEYEAR BRAND 1 AT INTERNATIONAL ( f ADMIRED RETAIL GLOBAL AWARDS IMAX BIG CINE KOTLER AWARD t FILM BUSINESS t PERSONALITY FOR RETAIL AWARDS OF EXCELLENCE AWARDS OFTHEYEAR EXCELLENCE 2018 2018-19 2018-19 2019 J 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 -400I, ____ .,: 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 US France Spain UK Germany South Korea China Japan Taiwan Thailand- r Brazil- , ____India ., I 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 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 - r ■ T I I T I T I r I T I I r r r 3 Idiots Dabaang Bodyguard Ek Tha Dabaang 2 Chennai Dhoom 3 Kick P.K BajrangiI Dangal Bahubali 2 TigerI Zinda 2.0 (2018) Saaho (2009) (2010) (2011) Tiger (2012) Express (2013) (2014) (2014) Bhaijaan (2016) - The Hai (2017) (2019) (2012) (2013) (2015) Conclusion (2017) INCREASING NUMBER OF Higher Number Of INR 1 Bn + Movies MOVIES ARE GENERATING 20 2 MORE THAN RS 1 BN IN NET 15 5 3 BOX OFFICE COLLECTIONS 10 2 - - 1 2- 2 2 1 1 1 12 DRIVEN BY WIDER SCREEN 5 - 1 10 1 9 7 8 7 - 5 6 5 RELEASES AND FACILITATED BY - - 1- 2 1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Upto- DIGITISATION OF CONTENT Jan'20 ■ 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 •tI = 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 9 Company Overview <FIRST rflGHEST NATIONAL CINEMA CHAIN "EBITDA TO CAPITAL IN THE INDUSTRY TO BE INVESTED RATIO" IN THE INDUSTRY NET DEBT FREE <FROMISES DELIVERED! 1NDIA'S <FIRST 600 3TIER CINEMA LOYALTY SCREENS PROGRAMME MILESTONE LAUNCHED! CROSSED LEISURE LIM ITED 10 Track Record of Aggressive Expansion 146 700 139 123 118 614 130 600 107 574 96 492 500 79 72 468 ,oo+ 68 80 63 420 400 screens 372 Screens Properties 32 - 26 310 22 30 - 279 300 16 6 9 257 2 3 239 200 -20 119 91 100 76 58 35 25 12 8 0 -- ■ ■ I I I I -70 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Feb-20 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 IN INDIA Screens Zone wise PUNJAB | 3 Properties | 13 Screens UTTAR PRADESH | 11 Properties | 44 Screens South, East, 87 DELHI | 5 Properties | 16 Screens JHARKHAND | 1 Property | 4 Screens 138 HARYANA | 6 Properties | 19 Screens RAJASTHAN | 13 Properties | 47 Screens MADHYA PRADESH | 5 Properties | 26 Screens Assam | 1 Property | 2 Screens North, West; 139 250 WEST BENGAL | 15 Properties | 59 Screens GUJARAT | 20 Properties | 81 Screens ODISHA | 4 Property | 14 Screens MAHARASHTRA | 27 Properties | 129 Screens CHHATTISGARH | 2 Properties | 8 Screens 19 States GOA | 4 Properties | 14 Screens TELANGANA | 3 Properties | 19 Screens 68 Cities KARNATAKA |12 Properties | 49 Screens ANDHRA PRADESH | 8 Properties | 33 Screens 146 Properties KERALA |1 Property | 6 Screens TAMIL NADU | 5 Properties | 31 Screens 614 Screens 142,684 Seats * Includes 8 management properties with 29 screens and 7,370 seats 12 Well Diversified Presence Across India 146 Properties 68 Cities East; 10; 15% South, 29, 20% East; 23; 16% South, 14, 20% Well Diversified Distribution of Multiplexes across India West, 23, 34% North, 38, 26% West, 56, 38% North, 21, 31% Access to Wide Variety of Regional Content 614 Screens 142,684 Seat East, 21,702 , 15% East; 87; 14% South; 31,493 ; 22% South, 138, 22% Lower Dependency on Hindi and English Content West, 57,253 , 40% North, 139, 23% West, 250, 41% North; 32,236 ; 23% Includes 8 management properties with 29 screens and 7,370 seats 13 New Screen Pipeline IN X FY20 Pipeline Properties Screens Seats Properties Open Date Properties Screens Seats FY19 139 574 135,586 Lucknow Garden Galleria 12-Apr-19 1 4 803 FY20 Openings till date --- 9 46 9,196 Taksh Galaxy Vadodara 3-May-19 1 5 976 Expected Feb'20 to Mar'20 6 24 3,823 Bengaluru Yelahnaka 28-Jun-19 1 4 756 *Adjustments (2) (6) (2,098) Hyderabad GSM 29-Jun-19 1 8 1,691 FY20 Expected 152 638 146,507 Lucknow Umrao Mall 18-Aug-19 1 3 653 Jalandhar Reliance 6-Sep-19 1 3 862 Additions Post FY20 --- 148 1,018 188,881 Gorakhpur Orion 12-Dec-19 1 4 748 Leading to 300 1,656 335,388 Indore Century 21(Existing) 27-Dec-19 - 4 378 --- Lucknow Crown Mall 30-Dec-19 1 6 1,190 Pune Elpro 16-Jan-20 1 5 1,139 Openings Till Date 9 46 9,196 To Be Opened Jaipur 1 3 550 Bhilwara 1 3 670 Indore (Existing) - 2 80 Bengaluru 1 5 629 Gurugram 1 4 850 Mumbai 1 4 241 Salem 1 3 803 Total 15 70 13,019 *Adjustments – Discontinued operations of Nagpur Poonam Mall (3 screens & 1068 seats) & Pune FNS (3 screens & 1015 seats), and 15 seats of Siliguri Orbit has been reduced due to renovation.