INVESTOR PRESENTATION June 17
Company Overview India s largest cinema chain Leadership position in India with approx. 40% share of Hollywood Box Office and approx. 25% share of 75 Million Guests 587 Screens Bollywood Box Office 5 mn sq.ft of operational retail space, another 4 mn sq.ft under development 128 Theatres 51 Cities Revenues of 21,817 mn INR and EBITDA of 3,759 mn INR 1 Market Cap of 66 bn INR 2 Domestic Mutual Funds 12% Share Holding as on 30 th June 17 Others 11% FIIs 29% Promoters 20% Multiples Private Equity 14% [1] For FY 16-17 [2] Market Cap as on 30th June 17 Warburg Pincus 14% 2
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Pan India Presence With Highest Market Share 18 STATES 50 CITIES 126 CINEMAS 579 SCREENS 1,32,026 SEATS Region-wise Benchmarking by # of Screens Region PVR Total PVR Market Share PVR Rank North 194 702 28% 1 South 125 462 27% 1 West 238 905 26% 1 East 22 131 17% 3 Total 579 2200 26% 1 City (Tier) wise Benchmarking by # of Screens Tier PVR Total PVR Market Share PVR Rank I (13) 349 854 41% 1 II (53) 184 885 21% 1 III (116) 46 461 10% 3 Total 579 2200 26% 1 PVR is # 1 operator in all key markets in India Source: Industry Research 5
India A High Growth Box Office Market 11% Movie going is the number 1 entertainment option for people in India 1% 8% 10% Largest number of movies released in the world (1,200 movie 70% releases and over 1.95 billion movie goers annually) Domestic box office collections contribute 70% of the film industry revenue Source: KPMG FICCI Report 2017 6
India A High Growth Box Office Market TOP 7 INTERNATIONAL BOX OFFICE MARKET (USD BILLION) INDIAN FILM INDUSTRY REVENUES (INR BILLION) India has moved ahead of UK & France to become 4th Largest movie market in the world Industry is projected to grow @ 8% CAGR in next 5 years India Japan China Gemany UK Spain France USA 7 NO.OF SCREENS PER MILLION POPULATION 26 30 57 61 82 85 125 2009 9,675 925 GROWTH IN MULTIPLEXES 10,600 9,500 7,300 2,200 2016 Under screened market with huge potential for growth Modern day Multiplexes are growing & single screens are shutting down Source: KPMG FICCI Report 2017 & MPAA Theatrical Market Statistics Report 2016, 1 USD = 65 INR 7
Our Key Strengths Premium guest experience Diversified Product Offerings Strong Location & Product Strategy Comfort & Convenience PVR Cutting Edge Technology Leader in Ad revenues Best in class concessions 8
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Strong Location Strategy Present in leading Indian malls (representative list) A+ Site real estate locations providing competitive advantage Anchor tenant in more than 60% of top 20 Malls in India Asset light model with no ownership of real estate Long term rental agreements (15-20 years) and has established strong relationships with marquee mall developers in the country 5 mn sq.ft. of existing real estate with another 4 mn signed for future rollout - Doesn t own real estate PVR is the most preferred multiplex chain for Mall developers 23
Keeping In Step With Digital India Partnership with technology aggregators Tied up with BookMyShow, Paytm & Justdial to leverage growth in online penetration Rising Online Penetration Online GBOC Contribution 51% 41% 33% 23% FY14 FY15 FY16 FY17 Own Website & Mobile App Select and reserve your seat Pre-book F&B and service on seat Movie Calendar To inform and excite consumers about the upcoming movies Paper Less Ticketing QR Code - paper less ticketing 24
Best In Class Concessions Enhanced F&B offerings F&B Spend per patron (INR) Highest F&B spend per patron 40 46 53 64 72 81 FY12 FY13 FY14 FY15 FY16 FY17 25
Best In Class Concessions Huge potential for growth PVR F&B Spend Per Head as a % of Average Ticket Price International Chains F&B Spend Per Head as a % of Average Ticket Price 28% 29% 32% 36% 38% 41% 27% 31% 36% 46% 50% 59% FY12 FY13 FY14 FY15 FY16 FY17 CJ CGV Major Cineplex Cineworld Regal AMC Cineplex Korea Thailand UK USA Canada Data: Company Financials (12 months CY16) India has an unique concept of intermission giving opportunity to sell concession twice Relatively lower F&B spend vis-à-vis other global players 26
Leader In Advertisement Revenues Premium brand recognition leading to pricing premium Partnership with multiple brands across sectors Advertisement revenues 2X of the nearest competitor Advertisement Revenue (INR mn) 1 1,517 1,771 2,145 2,518 654 859 FY12 FY13 FY14 FY15 FY16 FY17 Strong brand with great locations and quality footfalls translating into partnerships with leading brands [1] Consolidated 27
Global Cinema Comparison Period CY 2016 CY 2016 CY 2016 CY 2016 CY 2016 FY 16-17 Operating Metrics Regal Cinemark AMC Wanda CGV Korea PVR Theaters 565 522 388 320 133 126 Screens 7,310 5,865 5,295 2,789 996 579 Domestic Market Share 18% 15% 13% 13% NA 25%/40% 1 Screens Per Theater 12.9 11.2 13.6 8.7 7.5 4.6 Attendance Attendance ('000) 217,000 304,800 208,000 193,284 1,03,706 75,200 Attendance per screen ('000) 29.7 52.0 39.3 69.3 104.1 129.9 Pricing ATP $10.08 $6.50 $10.01 $6.47 $6.47 $3.02 SPH $4.60 $3.59 $5.02 $2.33 $1.68 $1.26 SPH as a % of ATP 46% 55% 50% 36% 26% 41% [1] 25% for Bollywood movies and 40% for Hollywood movies 1 USD = 65 INR 28
Superior Financial Performance vs Competition Revenues (INR mn) EBITDA (INR mn) 14,859 64% 9,036 19,130 64% 21,817 77% 11,683 12,298 2,097 60% 1,310 3,559 81% 3,759 142% 1,967 1,551 FY 14-15 FY 15-16 FY 16-17 FY 14-15 FY 15-16 FY 16-17 PVR Inox PVR Inox Revenue per screen (INR mn) 1 EBIDTA per screen (INR mn) 1 33.6 32% 26% 44% 39.0 39.8 26.6 29.6 27.7 4.7 23% 3.9 46% 97% 7.3 6.9 5.0 3.5 FY 14-15 FY 15-16 FY 16-17 FY 14-15 FY 15-16 FY 16-17 PVR Inox PVR outperforms the industry PVR Inox [1]Revenues & EBTIDA per screens are calculated based on average number of screens operational during the year 29
Superior Operating Performance vs Competition Admits (mn) & Occupancy (%) ATP (INR) 31% 59 44% 25% 41 34% 70 30% 40% 33% 29% 75 28% 53 54 176 7% 164 188 11% 196 10% 170 178 FY 14-15 FY 15-16 FY 16-17 FY 14-15 FY 15-16 FY 16-17 PVR Inox PVR Inox SPH (INR) Sponsorship Income (INR mn) 64 25% 16% 30% 81 72 55 58 62 1,771 136% 162% 117% 2,518 2,145 815 910 962 FY 14-15 FY 15-16 FY 16-17 FY 14-15 FY 15-16 FY 16-17 PVR Inox PVR outperforms the industry PVR Inox 30
Annexures 31
Management Team Chairman & MD Mr. Ajay Bijli Established PVR in 1995 Over 22 years of experience in the movie exhibition industry Recognised as the pioneer of the multiplex industry in India Mr. Ajay Bijli Chairman and Managing Director Awarded the E&Y Entrepreneurial Award 2013 for Business Transformation and CNBC s Emerging India Awards in the same year Joint MD Mr. Sanjeev Kumar Over 22 years of experience in the cinema exhibition industry Manages the film acquisition and distribution business and programming activities of PVR Also involved in the development and growth strategy of PVR Mr. Sanjeev Kumar Joint Managing Director 32
Management Team Chief Executive Officer Mr. Gautam Dutta Has been with PVR for over 11 years and has over 2 decades of experience Oversees the company s operations to ensure efficient and cost-effective management of resources Chief Executive Officer of PVR Pictures & Chief Business Planning & Strategy of PVR Ltd Mr. Kamal Gianchandani Over 23 years of experience Handling film financing, distribution, syndication, licensing and exhibition for both Indian and foreign language films in India Group Chief Financial Officer Mr. Nitin Sood He has been instrumental in raising capital from banks and investors. He also oversees accounting, legal and compliance for various group companies and heads discussions for any new business expansion and M&A opportunities CEO Luxury Cinemas and PVR bluo Mr. Renaud Paliiere Renaud serves as the CEO, International Development since 2012. He is also the CEO of PVR bluo 33
FY16-17 Performance Snapshot - Consolidated Particulars (INR mn) FY16-17 FY 15-16 Growth Income 21,628 18,811 15% Expenses 18,058 15,571 16% Operating Profit 3,570 3,240 10% Operating Profit Margin 16.5% 17.2% -0.7% Other Income 189 319-41% EBITDA 3,759 3,559 6% EBITDA Margin 17.2% 18.6% -1.4% Depreciation 1,384 1,151 20% FY 16-17 Revenue Mix Box Office 52% F&B 25% Sponsorship Revenues 11% Other Businesses 5% Other Operating Other Income 1% Income 6% EBIT 2,375 2,408-1% Finance Cost 806 839-4% PBT before Exceptional item 1,569 1,569 0.03% Exceptional Item 1 (41) (116) 65% PBT after Exceptional item 1,528 1,453 5% Tax 570 467 22% PAT 958 986-3% [1] Exceptional items in financial results includes write-off of assets on a property Personnel Expenses 10% Cost of Food & Beverages 6% FY 16-17 Expenditure Mix (% of Total Revenues) Rent 18% Film Hire Charges 21% Repairs and Maintenance 4% Electricity & CAM 12% Other Expenses 11% 34
Historical Performance Screens Cities 166 351 421 464 516 579 22 34 39 42 46 50 FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17 Footfalls (mn) ATP (INR) 60 59 70 75 156 167 168 178 188 196 25 37 FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17 35
Strong Financial Performance Revenues (INR mn) EBITDA (INR mn) 13,588 14,859 19,130 21,817 2,230 2,097 3,559 3,759 5,298 8,154 858 1,259 FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17 PAT (INR mn) 981 958 443 504 252 116 FY12 FY13 FY14 FY15 FY16 FY17 36
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