INOX Leisure Limited Earnings Presentation Q2 & H1 FY15 O c t o b e r 2 0 1 4
Disclaimer This presentation includes forward-looking statements which deal with future events, including those relating to our general business plans and strategy, our future financial condition and growth prospects, and future developments in our sector and our competitive and regulatory environment. Forward-looking statements are identified by words such as anticipates, believes, estimates, may, expects, plans, intends, predicts, or continue and other similar expressions that indicate trends and future events. Forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results, performances or events to differ materially from the results contemplated by the relevant forward looking statement. Factors that could cause the Company's results to differ materially from those expressed in forward-looking statements include, without limitation, non-availability of good quality content, new technologies, real estate costs increases, withdrawal of entertainment tax exemption, general business and economic conditions beyond the Company's control, the consequences of competitive factors in the marketplace, results of continuous improvement and other cost-containment strategies and the Company's success in attracting and retaining key personnel. The Company undertakes no obligation to revise or update forward-looking statements as a result of new information, since these statements may no longer be accurate or timely.
Snapshot Of Financials (IN R Lakhs) FY11 FY12 FY13 FY14 Q2 FY14 Q1FY15 *Q2 FY15 H1 FY14 *H1 FY15 Gross Box Office 27,614 47,190 55,876 59,656 16,750 15,656 17,996 32,967 33,652 Total Revenues 37,597 65,293 76,891 87,778 23,735 23,321 26,667 46,759 49,987 EBITDA 3,647 8,095 10,163 13,091 4,088 3,019 3,732 8,009 6,752 EBITDA Margin (%) 9.70% 12.40% 13.22% 14.91% 17.22% 12.95% 14.00% 17.13% 13.51% PAT 500 435 1,845 3,694 1,471 458 523 2,893 981 PAT Margin (%) 1.33% 0.67% 2.40% 4.21% 6.20% 1.96% 1.96% 6.19% 1.96% 3 *Includes Satyam Cineplexes Ltd. data from 8 th Aug 2014 to 30 th Sep 2014
New Property Openings H1 FY15 Gurgaon Dreamz Mall, 24 th Jun 2014 Gurgaon Dreamz Mall, 24 th Jun 2014 Screens, 646 Seats 3 Screens, 646 Seats Vizag Chitralayaa Mall, th Jul 2014 Vizag Chitralayaa Mall, 4 th Jul 2014 Screens, 635 Seats 3 Screens, 635 Seats Jalgaon Khandesh Central, 27 th Jul 2014 4 Screens, 1141 Seats Faridabad EF3, 1 st Sep 2014 3 Screens, 702 Seats 4
One of the Largest Multiplex Chains in India PUNJAB 1 Properties 6 Screens DELHI 3 Properties 12 Screens HARYANA 6 Properties 19 Screens RAJASTHAN 8 Properties 25 Screens UTTAR PRADESH 3 Properties 13 Screens JHARKHAND 1 Property 4 Screens 17 S t a t e s 5 0 Ci t i e s 9 2 M u l t i p l e x e s 3 61 S cre e n s 9 6, 0 5 8 S e a t s MADHYA PRADESH 4 Properties 16 Screens GUJARAT 6 Properties 25 Screens MAHARASHTRA 21 Properties 85 Screens GOA 1 Property 4 Screens KARNATAKA 10 Properties 38 Screens TAMIL NADU 3 Properties 14 Screens WEST BENGAL 14 Properties 55 Screens ORISSA CHHATTISGARH 1 Property 3 Screens 2 Properties 8 Screens TELANGANA 2 Properties 11 Screens ANDHRA PRADESH 6 Properties 23 Screens 5 Includes Satyam Cineplexes Ltd.
18,631 37,252 20,964 19,211 Pan India Presence 5 0 C i t i e s 9 2 L o c a t i o n s 9 17 10 14 18 32 21 21 East West South North East West South North 3 61 S c r e e n s 9 6, 0 5 8 S e a t s 130 70 86 75 East West South North East West South North Well distributed mix of properties 6 Includes Satyam Cineplexes Ltd.
Footfalls 23% Occupancy rates 33% 28% 28% 25% 26% 26% 32% 26% (Lakhs) 258 307 353 386 Footfalls 108 99 112 215 210 Footfalls With Management Locations *Q2FY15: 116 Lakhs *H1FY15: 218 Lakhs * * *Includes Satyam Cineplexes Ltd. data from 8 th Aug 2014 to 30 th Sep 2014 * * Occupancy of Comparable Properties Footfalls of Comparable Properties 33% 27% 32% 27% (Lakhs) 213 183 106 93 7 Q2FY14 Q2FY15 H1FY14 H1FY15 Note: All the above charts Excludes Managed properties Q2FY14 Q2FY15 H1FY14 H1FY15
Robust Ticket Prices (ATP) ATP Trend ATP of Comparable Properties 152 156 160 156 156 159 162 155 161 157 160 155 159 Q2FY14 Q2FY15 H1FY14 H1FY15 * * Note: Excludes Managed properties *Includes Satyam Cineplexes Ltd. data from 8 th Aug 2014 to 30 th Sep 2014 Inox brand enjoys a premium positioning amongst urban consumers Prime locations provide strong pricing power Increasing contribution of 3D movies 3D tickets are priced at a premium of 15-20 % over 2D tickets 8
Highly Profitable F&B Service SPH Growth overall F&B Cost (% of F&B revenues) 41 44 47 49 48 56 53 48 54 32% 31% 30% 26% 27% 24% 23% 27% 23% 12% SPH Growth * * * * 9 *Includes Satyam Cineplexes Ltd. data from 8 th Aug 2014 to 30 th Sep 2014
Enhanced Focus on Other Operating Income Other operating revenues per operating screen (INR Lakhs) Ad Revenue Other Operating Revenue 20.8 13.0 12.6 7.7 10.4 9.1 7.9 12.7 12.6 17.1 5.1 4.7 5.1 4.1 5.1 5.2 7.0 9.6 FY11 FY12 FY13 FY14 Q2FY14 Q1FY15 Q2FY15 H1FY14 H1FY15 * * 10 *Includes Satyam Cineplexes Ltd. data from 8 th Aug 2014 to 30 th Sep 2014
11 By Leveraging Brand Partnerships
E-Tax Trend E-Tax No. of prop Screens Seats Average Residual Period Full Tax 73 289 76,796 Exempted 13 52 13,593 2 years Includes Satyam Cineplexes Ltd. 17.8% 17.6% 18.3% 17.8% 17.7% 18.2% 17.8% 17.8% 18.0% E-Tax as a % of Gross Box Office Collection * * 12 *Includes Satyam Cineplexes Ltd. data from 8 th Aug 2014 to 30 th Sep 2014
Film Distributor Share Payout Trend Distributor Share on NBOC Distributor Share on GBOC 43.3% 43.7% 44.3% 44.3% 44.1% 44.0% 43.9% 44.0% 44.0% 35.6% 36.0% 36.2% 36.4% 36.3% 36.0% 36.1% 36.2% 36.0% FY11 FY12 FY13 FY14 Q2FY14 Q1FY15 * Q2FY15 H1FY14 * H1FY15 *Includes Satyam Cineplexes Ltd. data from 8 th Aug 2014 to 30 th Sep 2014 NBOC Net Box Office Collections GBOC Gross Box Office Collections 13
Overheads Analysis (Expenses as a % of Total Revenues) Employee Benefits Expense Property Rent and Conducting Fees CAM, Power&Fuel and R&M Other Overheads 14% 12% 12% 13% 12% 12% 12% 12% 12% 12% 11% 11% 11% 11% 11% 14% 13% 12% 12% 12% 12% 11% 11% 11% 12% 14% 12% 7% 6% 6% 6% 5% 6% 6% 5% 6% * * FY11 FY12 FY13 FY14 Q2FY14 Q1FY15 Q2FY15 H1FY14 H1FY15 14 *Includes Satyam Cineplexes Ltd. data from 8 th Aug 2014 to 30 th Sep 2014
Financial Summary Profit and Loss Statement I NR Lakhs FY11 FY12 FY13 FY14 Q2FY14 Q1FY15 *Q2FY15 H1FY14 *H1FY15 Gross Box Office 27,614 47,190 55,876 59,656 16,750 15,656 17,996 32,967 33,652 F&B Revenues 6,020 11,391 14,176 16,233 4,470 4,721 5,077 8,979 9,798 Ad Revenues 1,724 2,917 3,244 4,955 1,104 1,496 1,781 1,884 3,278 Other Revenues 2,239 3,795 3,595 6,934 1,412 1,448 1,812 2,928 3,260 Total Revenues 37,597 65,293 76,891 87,778 23,735 23,321 26,667 46,759 49,987 Entertainment Tax 4,923 8,304 10,204 10,607 2,970 2,857 3,200 5,865 6,057 Distributor Share 10,294 18,032 20,994 22,349 6,220 5,840 6,781 12,265 12,621 F&B Cost 1,951 3,487 4,259 4,664 1,329 1,225 1,337 2,680 2,562 Payroll Cost 2,609 3,945 4,269 4,957 1,171 1,369 1,614 2,334 2,983 Other Expenses 14,173 23,431 27,001 32,110 7,957 9,010 10,002 15,605 19,012 Total Expenses 33,950 57,198 66,728 74,687 19,647 20,301 22,935 38,749 43,236 EBITDA 3,647 8,095 10,163 13,091 4,088 3,019 3,732 8,009 6,752 EBITDA Margin (%) 9.70% 12.40% 13.22% 14.91% 17.22% 12.95% 14.00% 17.13% 13.51% Depreciation 2,295 3,747 4,308 5,069 1,284 1,809 1,921 2,492 3,730 Interest 1,619 2,426 2,670 2,763 744 645 1,140 1,481 1,785 Exceptional Items (561) 1,798 250 39-50 - - 50 Tax (13) 263 1,091 1,526 590 58 149 1,142 206 Minority share in loss 193 574 - - - - PAT 500 435 1,845 3,694 1,471 458 523 2,893 981 15 *Includes Satyam Cineplexes Ltd. data from 8th Aug 2014 to 30th Sep 2014
Strong Project Pipeline FY15 Sl No. City No. of Screens Est. Launch 1 Vizag 2 Q3FY15 2 Jamnagar 5 Q3FY15 3 Bhilwara 3 Q3FY15 4 Lucknow 4 Q3FY15 5 Delhi 1 Q3FY15 6 Kurnool 3 Q3FY15 7 Ajmer 3 Q3FY15 8 Goa 4 Q4FY15 9 Pune 2 Q4FY15 10 Pune 6 Q4FY15 11 *Bhiwadi 3 Q4FY15 12 Jaipur 4 Q4FY15 13 Rajkot 3 Q4FY15 14 Vadodara 3 Q4FY15 Total Screens 46 Post FY15 *Management Property Total Screens Post FY15 136 Post FY15 16
Strong Content Pipeline Oct 2014 Cast: Shah Rukh Khan, Abhishek Bachchan, Boman Irani, Sonu Sood, Deepika Padukone, Jackie Shroff, Vivaan Shah Director: Farah Khan Banner: Red Chillies Entertainment Cast: Ben Affleck, Rosamund Pike Director: David Fincher Banner: Fox Star Studios Cast: Brad Pitt, Shia LaBeouf, Logan Lerman Director: David Ayer Banner: Le Grisbi Productions, QED International, LStar Capital, Crave Films Cast: Rekha, Sharman Joshi, Randhir Kapoor, Anupam Kher Director: Indra Kumar Banner: Maruti International 17
Strong Content Pipeline Nov 2014 Cast: Akshay Kumar, Paresh Raval, Anupam Kher, Annu Kapoor Director: Abhishek Sharma Banner: Cape Of Good Films Cast: Randeep Hooda, Nandana Sen, Paresh Raval, Ashish Vidhyarthi, Sachin Khedekar, Darshan Jhariwala Director: Ketan Mehta Banner: Maya Movies, Infinity Films Cast: Ranveer Singh, Ali Zafar, Pareeneeti Chopra, Govinda Director: Shaad Ali Sahgal Banner: Yashraj Films Cast: Saif Ali Khan, Illiana D Cruz, Govinda, Priety Zinta, Ranvir Shorey, Kalki Director: Krishna Dk/Raj Nidimoru Banner: Illuminati Films, Eros International 18
Strong Content Pipeline Nov 2014 Cast: Matthew Mcconaughey, Jessica Chastain, Anne Hathway, Michael Caine Director: Christopher Nolan Bannger: Warner Bros Cast: Jennifer Lawrence, JoshPvr Pictures Ltd Hutcherson, Liam Hemsworth Director: Francis Lawrence Banner: Color Force Lionsgate Cast: Sanjay Dutt, Emran Hashmi, Kangana Ranaut,Neha Dhupia Director: Rensil D Silva Banner: Dharma Productions 19
Strong Content Pipeline Dec 2014 Cast: Ajay Devgan, Sonakshi Sinha, Yami Gautam, Kunal Roy Kapoor Director: ChristPrabhu Deva Banner: Baba Arts Limited Production Cast: Makrand Deshpandey, Sanjay Mishra, Zarina Wahab Director: Amit Khan Banner: Bulls Entertainment Cast: Luke Evans, Orlando Bloom, Ian Mac Kallen, Cate Balnchett Director: Peter Jackson Banner: Warner Bros Cast: Aamir Kahn, Anushka Sharma, Sushant Singh Rajput Director: Rajkumar Hirani Banner: Vinod Chopra Productions Cast: Christian Bale, Sigourney Weaver, Aaron Paul Director: Ridley Scott Banner: Fox Star Studios 20
THANK YOU INOX Leisure Limited ABS Towers, Old Padra Road, Vadodara, Gujarat 390 007 21