INOX LEISURE LTD. Q 3 & 9 M O N T H S - F Y 2 0 1 8 RESULTS UPDATE 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. All financial figures, upto and including FY15 are as per IGAAP and for FY16 and thereafter are as per IND-AS. Revenues for FY13 to FY15 are shown net of entertainment tax, to be consistent with the revenues under IND-AS for FY16 and thereafter. 2 Q 3 & 9MONTHS FY18 RESULTS C O N T E N T PIPELINE DISCUSSION P R O P E R T Y OPENINGS, PAN SHAREHOLDING STRUCTURE INDIA PRESENCE & NEW ANNEXURE SUMMARY S C R E E N S PIPELINE 3 Q3 & 9M FY18 Result Highlights Q3 FY18 YoY Comparison Revenue from Operations EBITDA PAT 330.0 EBITDA EBITDA Margin PAT PAT Margin 325.0 320.0 14.2% 4.0% 50.0 50.0 315.0 16.0% 4.5% 45.0 46% 45.0 251% 4.0% 310.0 9% 10.6% 14.0% 40.0 40.0 12.0% 3.5% 305.0 35.0 35.0 3.0% 30.0 10.0% 30.0 300.0 325.9 1.3% 2.5% 25.0 8.0% 25.0 295.0 2.0% 20.0 46.3 6.0% 20.0 13.2 1.5% 15.0 15.0 290.0 31.7 4.0% 298.0 10.0 10.0 1.0% 285.0 3.8 5.0 2.0% 5.0 0.5% 280.0 - 0.0% - 0.0% Q3FY17 Q3FY18 Q3FY17 Q3FY18 Q3FY17 Q3FY18 9M FY18 YoY Comparison Revenue from Operations EBITDA PAT 1,040.0 EBITDA EBITDA Margin PAT PAT Margin 1,020.0 1,000.0 16.3% 5.6% 180.0 18.0% 60.0 6.0% 980.0 10% 160.0 13.0% 38% 16.0% 88% 50.0 5.0% 140.0 14.0% 960.0 3.2% 120.0 12.0% 40.0 4.0% 1,024.5 100.0 940.0 10.0% 30.0 3.0% 80.0 166.6 8.0% 56.9 920.0 60.0 121.0 6.0% 20.0 2.0% 40.0 4.0% 900.0 932.2 10.0 30.3 1.0% 20.0 2.0% 880.0 - 0.0% - 0.0% 9MFY17 9MFY18 9MFY17 9MFY18 9MFY17 9MFY18 All figures in INR Crs., unless specified Note: EBITDA excludes Other Income (non-operating) 4 Q3 & 9M FY18 Results Analysis – Revenue Break Up Analysis Q3 FY18 YoY Comparison 9M FY18 YoY Comparison 800.0 1100.0 700.0 1024.5 932.2 77.7 600.0 900.0 69.1 105.7 75.3 500.0 12.4% 700.0 228.4 3.9% 218.4 400.0 325.9 298.0 500.0 40.4% 300.0 33.3% 24.6 23.7 40.3 30.2 73.1 200.0 67.6 300.0 612.7 8.2% 569.4 4.6% 100.0 176.4 187.9 6.5% 100.0 7.6% 0.0 Q3FY17 Q3FY18 -100.0 9MFY17 9MFY18 %Share Q3FY17 Q3FY18 9MFY17 9MFY18 Net Box Office 59.2% 57.6% 61.1% 59.8% Net Food & Beverage 22.7% 22.4% 23.4% 22.3% Advertisement 10.1% 12.4% 8.1% 10.3% Other Operating Revenues 8.0% 7.6% 7.4% 7.6% All figures in INR Crs., unless specified 5 Q3FY18 Results Analysis – Top 5 Movies in INOX TOP 5 Movies in INOX Q3FY18 Tiger Zinda Hai Golmaal Again Judwaa-2 Secret Superstar Fukrey Returns Footfalls (Lacs) 16.98 18.64 9.53 6.76 8.08 GBOC (INR Crs.) 41.51 38.16 17.01 15.04 14.32 Top 5 films accounted for 52% of Q3 FY18 GBOC revenues (53% in Q3 FY17) GBOC – Gross Box Office Collection 6 Q3 & 9M FY18 Results Analysis – Key Operational Metrics Overall Footfalls & Occupancy% Comparable Properties Footfalls & Occupancy% Footfalls (Lacs) Occ% Footfalls (Lacs) Occ% 500.0 33% 500.0 33% 450.0 450.0 27% 28% 27% 28% 400.0 400.0 28% 28% 26% 24% 26% 24% 350.0 350.0 23% 23% 300.0 300.0 250.0 18% 250.0 -2.7% 18% 200.0 200.0 407.1 407.0 368.0 13% 13% 352.6 150.0 150.0 100.0 100.0 8% 8% -4.5% -4.2% 50.0 50.0 124.7 121.3 113.6 108.5 - 3% - 3% Q3FY17 Q3FY18 9MFY17 9MFY18 Q3FY17 Q3FY18 9MFY17 9MFY18 Footfalls with Management properties: Q3FY18 – 128 lacs, 9MFY18 – 430 lacs 300 Comparable Properties Average Ticket Price (ATP) [INR] Overall Average Ticket Price (ATP) [INR] 300 250 250 200 200 150 150 9.6% 7.3% 8.8% 7.3% 100 199 193 100 182 179 183 199 181 194 50 50 - - Q3FY17 Q3FY18 9MFY17 9MFY18 Q3FY17 Q3FY18 9MFY17 9MFY18 7 Note: All above charts exclude management properties Q3 & 9M FY18 Results Analysis – Key Operational Metrics Spend Per Head (SPH) [INR] Food & Beverages – Net Contribution (%) 100 100.0% 90 90.0% 80 80.0% 70 70.0% 60 60.0% 50 50.0% 5.5% 40 10.5% 40.0% 70 76.1% 75.8% 75.8% 76.0% 30 63 63 66 30.0% 20 20.0% 10 10.0% - 0.0% Q3FY17 Q3FY18 9MFY17 9MFY18 Q3FY17 Q3FY18 9MFY17 9MFY18 Advertisement Revenue [INR Crs.] Other Operating Revenue [INR Crs.] 200.0 150.0 180.0 130.0 160.0 110.0 140.0 120.0 90.0 100.0 70.0 3.9% 12.4% 33.3% 40.4% 80.0 50.0 105.7 60.0 75.3 40.0 30.0 69.1 77.7 40.3 20.0 23.7 24.6 10.0 30.2 - (10.0) Q3FY17 Q3FY18 9MFY17 9MFY18 Q3FY17 Q3FY18 9MFY17 9MFY18 8 Q3 & 9M FY18 Results Analysis – Key Operational Metrics Film Distributor Share [%] Other Overheads Per Operating Screen (INR Lacs) Employee Benefits Property Rent & Conducting Fees Distributor Share On NBOC Distributor Share On GBOC CAM, Power & Fuel, R&M Other Overheads 70.0% 130.0 122.7 119.7 60.0% 110.0 -12.6% 39.9 34.8 50.0% 45.7% 46.9% 45.5% 44.6% 90.0 40.0% 36.8% 36.0% 35.1% 35.9% 2.3% 70.0 -12.5% 32.6 33.3 30.0% 50.0 40.1 -2.5% 39.0 20.0% 2.7% 30.0 13.5 11.8 34.2 35.1 2.9% 10.0% 10.2 10.0 10.0 11.3 11.6 9.6% 16.1 1.9% 16.4 0.0% 5.1 5.6 Q3FY17 Q3FY18 9MFY17 9MFY18 (10.0) Q3FY17 Q3FY18 9MFY17 9MFY18 NBOC (Net Box Office Collections) , GBOC (Gross Box Office Collections) 9 Introducing the all new 7 STAR METRO INOX MUMBAI’S GREATEST LOVE STORY… • 6 Screens, 1271 seats • K I D D L E S - M u m b a i ’ s first kids t h e a t r e • C a f e UNWIND • Advanced 4K Projection • A u g m e n t e d R e a l i t y • D o l b y A t m o s • V o l f o n i 3D 10 New Properties Opened – Q3FY18 Mumbai Atria (21st Oct 2017) Kolhapur Reliance (29th Nov 2017) 5 Screens 167 Seats 4 Screens 870 Seats Property Names Opened Property Screens Seats Pune Heritage Mall Q1FY18 1 4 662 Greater Noida Omaxe Mall Q2FY18 1 5 1,223 Mumbai Worli Atria Q3FY18 1 5 167 Kolhapur Reliance Mall Q3FY18 1 4 870 Ghaziabad Shipra Mall Q3FY18 1 3 1,153 YTD Openings 5 21 4,075 Ghaziabad Shipra Mall (22nd Dec 2017) 3 Screens 1,153 Seats 11 Track Record of Aggressive Expansion Screens Properties 118 122 600 107 96 79 488 100 500 68 72 468 63 420 400 372 26 32 50 14 22 310 2 3 6 9 279 300 257 239 0 200 119 76 91 -50 100 35 51 8 12 25 0 -100 FY07 FY17 FY03 FY04 FY05 FY06 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Jan-18 ON AN AVERAGE ADDITION OF 3 SCREENS EVERY MONTH OVER THE LAST DECADE Note: Includes Acquisition of 89 Cinemas in FY07, Fame in FY11 and Satyam in FY15 12 PAN India Presence ONE OF THE LARGEST MULTIPLEX CHAIN OPERATOR IN INDIA PUNJAB | 1 Property | 6 Screens UTTAR PRADESH | 6 Properties | 24 Screens 19 States DELHI | 4 Properties | 13 Screens JHARKHAND | 1 Property | 4 Screens HARYANA | 5 Properties | 16 Screens 60 Cities RAJASTHAN | 13 Properties | 43 Screens MADHYA PRADESH | 4 Properties | 16 Screens Assam | 1 Property | 2 Screens 122 Properties GUJARAT | 16 Properties | 67 Screens WEST BENGAL | 14 Properties | 55 Screens ODISHA | 1 Property | 3 Screens MAHARASHTRA | 27 Properties | 118 Screens 488 CHHATTISGARH | 2 Properties | 8 Screens Screens GOA | 4 Properties | 14 Screens TELANGANA | 2 Properties | 11 Screens KARNATAKA |10 Properties | 40 Screens ANDHRA PRADESH | 7 Properties | 28 Screens 121,281 Seats KERALA |1 Property | 6 Screens TAMIL NADU | 3 Properties | 14 Screens * Includes 8 management properties with 29 screens and 7,370 seats 13 New Screen Pipeline FY18 Pipeline Properties Screens Seats Properties Properties Screens Seats FY17 118 468 118,285 Pune Heritage (Opened 26th Apr17) 1 4 662 Additions - Apr17 to Dec17 5 21 4,075 Greater Noida Omaxe (Opened 14th Jul17) 1 5 1,223 Expected - Jan18 to Mar18 5 22 4,747 Mumbai Atria (Opened 21st Oct17) 1 5 167 FY18** 127 510 126,028 Kolhapur Reliance (Opened 29th Nov17) 1 4 870 Additions Post FY18 102 622 113,331 Ghaziabad Shipra (Opened 22nd Dec17) 1 3 1,153 Leading to 229 1,132 239,359 Coimbatore 1 9 2,088 Gurgaon 1 3 619 Bhubaneswar 1 3 612 Nadiad 1 3 649 Navi Mumbai 1 4 779 Total 10 43 8,822 STRONG VISIBILITY FROM NEW SCREENS PIPELINE BACKED BY SIGNED AGREEMENTS ** Note; • 612 seats and 1 screen reduced as Bengaluru Shankarnag was closed due to Completion of the Lease Tenure • 112 seats reduced in Bharuch Bluechip in Gujarat due to conversion into recliner seats • 51 seats reduced in Malleshwaram, Bengaluru due to renovation • 220 seats reduced in Metro, Mumbai due to renovation 14 • 84 seats reduced in Bengaluru Garuda due to renovation Content Pipeline – January 2018 Mukkabaaz 1921 Kaalakaandi Release Date: Release Date: Release Date: 12th January 2018 12th January 2018 12th January 2018 Cast: Vineet Kumar Cast: Zareen Khan, Cast: Saif Ali Khan, Singh, Zoya Hussain Karan Kundra Vijay Raaz Director: Anurag Director: Vikram Director: Akshat Kashyap Bhatt Verma Banner: Eros Banner: Reliance Banner: Cinestaan International Entertainment, Film Company Pvt.