INVESTOR PRESENTATION - d18hry5vavz86j.cloudfront.net · • Personalized ticketing and butler-on-call ... PAT PAT Margin % ... Operational Summary 28 Film Distributor Share (%)

INOX R-City Ghatkopar Mumbai

INVESTOR PRESENTATIONNov 2017

2

Introducing the ‘THEATRE OF DREAMS’…INOX INSIGNIA at Atria Mall, Worli Mumbai

• Theatres with opulent recliners• Personalized ticketing and butler-on-call• Gourmet Menu curated by Celebrity Chef Vicky Ratnani• Staff Uniforms crafted by Arjun Khanna

• Live food counter serving gourmet delights • A new level of luxury paired with bespoke

interiors• Laser projection with Dolby Atmos Sound

and 3D powered by Volfoni systems

Disclaimer

3

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.

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I N D U S T R Y O V E R V I E W

C O M P A N Y O V E R V I E W

C O M P E T I T I V E A D V A N T A G E & O U T L O O K

Q 2 F Y 1 8 R E S U L T U P D A T E

Discussion Summary

A N N E X U R E

• P E R S C R E E N E C O N O M I C S

• S H A R E H O L D I N G S T R U C T U R E

• D E T A I L E D F I N A N C I A L S

5

INDUSTRY OVERVIEW

Strong Fundamentals & Huge Growth Potential

6

1,602

745554 476

279 324 241 204 182 166

India China Japan US France UK Germany S. Korea Spain Italy

125

95 80

60 57 40

26 25 16 12 10 8

US France Spain UK Germany South Korea Japan Taiwan China Thailand Brazil India

2,178 1,930

1,364

208 197 176 171 169 156 146

China India US France Mexico UK Japan S. Korea Germany Russia

2nd Highest Number Of Theatre Footfalls in the World

Footfalls in Million

Highest Number of Film Releases in the World

However, India’s Screen Density is One of the Lowest

Screens / Million population

Source: CRISIL Report, FICCI Whitepaper on Screen Density in India

Steady Performance and Resilience

7

85.1 93.4 93.5 101.4 99.8 106.6 111.8 117.9 124.2 131.2

112.4125.3 126.4

138.1 142.4155.0

166.0178.2

191.6206.6

0

50

100

150

200

250

2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E

Domestic Theatrical Overseas Theatrical Home Video Cable & Satellite Rights Ancilliary Revenue Streams

75.7% 74.5% 74.0% 73.4% 70.1% 68.8% 67.4% 66.2% 64.8% 63.5%

2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E

% Share of Domestic Theatricals in Total Film Industry Revenues

In Rs. Billion

CAGR 6.1%

CAGR 7.7%

Indian Film Industry Displays Steady Performance Trends

Domestic Theatricals Continue to Remain the Major Revenue Contributor

Source: FICCI-KPMG 2017 Report

Multiplexes Witnessing Rapid Growth

8

FACTORS DRIVING GROWTH IN

MULTIPLEXES:

Superior location, destination and

parking facilities.

State of art equipment (high quality

video and audio), superior interiors,

ambience and service.

Multiple screens in one location offer a

wider variety of content to the patrons.

Further, different screen sizes provide

programming flexibility. This results in

higher occupancy ratios.

Strong demographics, rising disposable

incomes and discretionary spends.

Source: CRISIL Report, FICCI-KMPG Report 2017, Industry Sources

M u l t i p l e x e s c u r r e n t l y a c c o u n t f o r ~ 3 0 % m a r k e t s h a r e o f t h e s c r e e n s ,

h o w e v e r t h e y a c c o u n t f o r m o r e t h a n 4 0 % o f b o x o f f i c e

c o l l e c t i o n s

Number of Screens

9,3

08

9,1

21

8,6

85

8,4

51

8,0

02

6,0

00

6,0

00

6,0

00

1,0

75

1,2

25

1,3

50

1,5

00

1,6

30

2,1

34

2,2

25

2,4

71

-

1,00 0

2,00 0

3,00 0

4,00 0

5,00 0

6,00 0

7,00 0

8,00 0

9,00 0

10,0 00

2010 2011 2012 2013 2014 2015 2016 Oct-17

Single Screens Multiplexes

Increasing Number Of INR 1bn + Movies

9

1,000 1,598

2,065 2,101 2,638 3,014

3,446 3,359

5,200 4,500

5,300

6,500

3 Idiots(2009)

Dabaang(2010)

Bodyguard(2011)

Ek Tha Tiger(2012)

Dabaang 2(2012)

ChennaiExpress(2013)

Dhoom 3(2013)

Kick(2014)

P.K(2014)

BajrangiBhaijaan(2015)

Dangal(2016)

Bahubali 2 -The

Conclusion(2017)

12

5

96 7

5 6 7

1

22

22 1

2008 2009 2010 2011 2012 2013 2014 2015 2016 Jan-17 to Oct-17

INR 1 BN + INR 2 BN +

Wider Screen Releases

Higher Number Of INR 1 Bn + Movies

INCREASING NUMBER OF

MOVIES ARE GENERATING

MORE THAN RS 1 BN IN

NET BOX OFFICE COLLECTIONS

DRIVEN BY

WIDER SCREEN RELEASES

AND

IMPROVING CONTENT QUALITY

Source: Industry

10

Company Overview

Track Record of Aggressive Expansion

11

8 12

25

35

51

76

91

11

9

23

9

25

7

27

9

31

0

37

2

42

0

46

8

48

1

2 3 6 9 1422 26 32

63 68 72 7996

107118 120

-50

-30

-10

10

30

50

70

90

110

130

0

100

200

300

400

500

600FY

03

FY0

4

FY0

5

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

Oct

-17

Screens Properties

Note: Includes Acquisition of Calcutta Cine Pvt. Ltd. in FY07, Fame India Ltd. in FY11 and Satyam Cineplexes Ltd. in FY15

ON AN AVERAGE ADDITION OF 3 SCREENS EVERY MONTH OVER THE LAST DECADE

PAN India Presence

12

KERALA |1 Property | 6 Screens

19States

58Cities

120Properties

481Screens

119,342Seats

JHARKHAND | 1 Property | 4 Screens

WEST BENGAL | 14 Properties | 55 Screens

ODISHA | 1 Property | 3 Screens

CHHATTISGARH | 2 Properties | 8 Screens

TELANGANA | 2 Properties | 11 Screens

ANDHRA PRADESH | 7 Properties | 28 ScreensKARNATAKA |10 Properties | 40 Screens

GOA | 4 Properties | 14 Screens

MAHARASHTRA | 26 Properties | 114 Screens

GUJARAT | 16 Properties | 67 Screens

MADHYA PRADESH | 4 Properties | 16 Screens

RAJASTHAN | 13 Properties | 43 Screens

HARYANA | 5 Properties | 16 Screens

TAMIL NADU | 3 Properties | 14 Screens

UTTAR PRADESH | 5 Properties | 21 Screens

DELHI | 4 Properties | 13 Screens

PUNJAB | 1 Property | 6 Screens

Assam | 1 Property | 2 Screens

ONE OF THE LARGEST MULTIPLEX CHAIN OPERATOR IN INDIA

* Includes 8 management properties with 29 screens and 7,370 seats

13

Key Marquee Propert ies

Marquee Properties – Atria Mall Worli Mumbai

14

15

16

CR2 Nariman Point, Mumbai

17

18

19

INSIGNIA – LUXURY MOVIE WATCHING EXPERIENCE

20

21

22

23

24

25

Financial Summary

26

9.4%

11.5%

6.1%

14.9%

7.3%5.7%

10.3%

3.8%

16.8%

5.7%

FY13 FY14 FY15 FY16 FY17

ROCE % ROE %

663.2 762.8

895.4

1,160.6 1,220.7


98.0 122.0 122.7

189.1 146.1

14.8% 16.0% 13.7% 16.3% 12.0%


EBITDA EBITDA Margin %

18.5

36.9 20.0

81.0

30.6

2.8%4.8%

2.2%7.0%

2.5%


PAT PAT Margin %

281.0 242.2 241.2 267.0 317.0

324.6 390.9 676.2 522.3 552.5

0.8 0.6

0.3 0.4 0.5


Equity Debt Net Debt to Equity

68.9% 64.3% 61.6% 61.4% 61.3%

21.4% 21.3% 21.3% 22.9% 23.3%

4.9% 6.5% 9.1% 7.8% 7.9%

4.9% 7.9% 8.0% 7.8% 7.6%


NBOC F & B Advertising Others

Financial Summary is as per IGAAP for FY13 to FY15 and as per IND-AS for FY16 and FY17.Revenues for FY13 to FY15 are shown net of entertainment tax, consistent with the revenues under IND-AS for FY16 and FY17

ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed [(Capital Employed = Equity + Total Debt)Net Debt = Total Debt – Cash –Bank – Liquid MF Investments

REVENUES EBITDA PAT

REVENUES - SEGMENT BREAKUP LEVERAGE ANALYSIS RETURN METRICS

All figures in INR Crs., unless specified

Operational Summary

27Note: All the above charts exclude managed properties.

Footfalls & Occupancy Rate

353 386 411534 537

28% 28% 25% 29% 28%


Footfalls (Lakhs) Occupancy (%)

Average Ticket Price (ATP) (Rs)

160156

164

170

178


F & B – Spend Per Head (SPH) (Rs)

47 4955 58 62


F & B – Net Contribution (%)

70.0% 71.3%74.1% 75.0% 76.0%


13.7

18.5

25.1 24.6 22.0


ADV REV PER Operating Screen (Rs Lakhs)

13.7

22.5 21.9 19.2

23.0


OTHER REV Per Operating Screen (Rs Lakhs)

Operational Summary

28

Film Distributor Share (%)

44.3% 44.3% 43.8% 43.9% 44.4%

36.2% 36.4% 35.9% 34.6% 35.0%


Distributor Share on NBOC Distributor Share on GBOC

NBOC (Net Box Office Collections) GBOC (Gross Box Office Collections)

Other Overheads Per Operating Screen (Rs Lakhs)

18.1 18.5 20.3 20.1 21.2

39.3 40.2 41.3 44.0 45.6

35.4 39.2 40.8 45.5 42.9

39.8 40.4 43.447.5 52.7


Employee Benefits Lease Rental & Hire Charges

CAM, Power & Fuel, R&M Other Overheads

157.0138.3 145.8

132.5162.5

Operational Summary is as per IGAAP for FY13 to FY15 and as per IND-AS for FY16 and FY17

29

Competitive Advantage• R e c o g n i s e d A n d T r u s t e d C o r p o r a t e G r o u p• W e l l D i v e r s i f i e d P r e s e n c e A c r o s s I n d i a• S t r o n g N e w S c r e e n s P i p e l i n e• S t r o n g B r a n d P a r t n e r s h i p s• U n d e r - l e v e r a g e d B a l a n c e S h e e t W i t h F u r t h e r S c o p e F o r D i l u t i o n• S t a t e O f T h e A r t T e c h n o l o g y , U n m a t c h e d S e r v i c e A n d A m b i e n c e

Recognised & Trusted Corporate Group

30

90 Year track record of consistent business growth

USD $3 Billion Inox Group diversified across 7 different

businesses

10,000+ employees at 150+ business units across India

Distribution network spread over 50+ countries

L i s t e d C o m p a n i e s O t h e r K e y C o m p a n i e s

Inox LeisureLimited

Largest producer (by volume) of chloromethanes, refrigerants and Polytetrafluoroe-thylene in India

Inox Air Products Private Limited

50:50 joint venture with Air Products Inc., USA

Manufacturer of industrial gases in India

36 plants spread throughout the country

Engaged in the business of setting up and operating of wind farms

233 MW operational capacity located across 3 Indian states

One of the largest multiplex chains in India

In the business of setting up, operating and managing a national chain of multiplexes under the brand name ‘INOX’

Present in 58 cities with 120 multiplexes and 481 screens

Gujarat FluorochemicalsLimited

Manufacturer of cryogenic liquid storage and transport tanks in India

Offers comprehensive solutions in cryogenic storage, vaporization and distribution engineering

Has operations in India, USA, Canada, Netherlands and Brazil

Inox India PrivateLimited

Inox RenewablesLimited

One of the largest manufactures of Wind Turbine Generators (WTG) in India

Manufacturers of key components of WTG, Power

300 MW Order Book from diversified customers including large IPPs, Utilities, PSUs, Corporates and Retail

Inox Wind LimitedInox FMCG

Private Limited

Launched in January 2016, it is focussed on FMCG business encompassing F&B and non-F&B categories.

INOX FMCG products branded as “Inox Muchos” are retailed through Modern Trade, General Trade and HORECA Institutions.

Well Diversified Presence Across India

31

East, 19

West, 50

North, 28

South, 23East, 9

West, 20North, 17

South, 12

East, 72

West, 211

North, 99

South, 99East, 18,805

West, 52,190

North, 25,173

South, 23,174

Well DiversifiedDistribution of

Multiplexesacross India

Access toWide Variety of

Regional Content

Lower Dependencyon Hindi and English

Content

Includes 8 management properties with 29 screens and 7,370 seats

120 Properties 58 cities

481 Screens 119,342 Seats

Strong New Screens Pipeline

32

Properties Screens Seats

Properties Properties Screens Seats FY17 118 468 118,285

Pune Heritage (Opened 26th Apr17) 1 4 662 Additions - Apr17 to Oct17 3 14 2,052

Greater Noida Omaxe (Opened 14th Jul17) 1 5 1,223 Expected - Nov17 to Mar17 7 31 6,493

Mumbai Atria (Opened 21st Oct17) 1 5 167 FY18** 127 512 125,835

Kolhapur 1 4 870 Additions Post FY18 85 515 94,777

Coimbatore 1 9 2,088 Leading to 212 1,027 220,612

Cuttack 1 4 846

Nadiad 1 3 649

Navi Mumbai 1 4 779

Gurgaon 1 3 619

Surat (Existing Property) 0 1 30

Bhubaneswar 1 3 612 Total 10 45 8,545

FY18 Pipeline

** 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

STRONG VISIBILITY FROM NEW SCREENS PIPELINE BACKED BY SIGNED AGREEMENTS

Strong Brand Presence

FMCG Ecommerce & TelecomBFSIConsumer DurablesMedia OthersAutomobiles Media FMCG Consumer Durables BFSI Ecommerce & Telecom Others.

Unleveraged Balance Sheet

34

Potential To Grow Aggressively Without Any

Significant Stress On Balance Sheet

Low Leverage Net D/E:

Treasury Stock in Inox Benefit Trust Current Market Price

Promoters Stake

Strong Balance Sheet

• Calculated on Trailing 12 Months Basis• ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed (Capital Employed = Equity + Total Debt)

* Share price As of 6th Nov 2017

Particulars (INR Crs.) Sep-17 Mar-17

Share Capital 96.2 96.2

Other Equity 533.5 489.0

Interest in Inox Benefit Trust, at cost (32.7) (32.7)

Total Shareholder funds 597.0 552.5

Non-Controlling Interest 0.01 0.01

Total Equity 597.0 552.5

Total Debt 307.0 317.0

Other Non-Current Liabilities 93.3 96.0

Total Sources of Funds 997.4 965.5

Fixed Assets 771.9 765.3

Other Non-Current Assets 277.7 273.5

Current Assets 101.8 81.8

Cash & Cash Equivalents 85.8 23.5

Less: Current Liabilities 239.9 178.5 Net Current Assets (52.2) (73.3)

Total Assets 997.4 965.5

Key Balance sheet Ratios Sep-17 Mar-17

Net Debt : Equity 0.4 0.5

Return on Equity (ROE) 8.3% 5.7%

Return on Capital Employed (ROCE) 10.5% 7.3%

0.4x

48.7%

Real Estate on Balance Sheet

INR 350 Crs.

114 INR Crs.*

State of the Art Technology, Unmatched Service & Ambience

35

Focus on technology:

ILL is the first multiplex chain to implement SAP HANA with all integrated functions

Focus on ensuring transparency with regulatory agencies and distributors through daily performance analysis reports

The Network Operations Centre (NOC) in Mumbai enables continuous monitoring, control and reporting of information on all digital

systems across the country. Advertisers can track their advertisement screening at various multiplexes on real-time basis leading to

improved transparency and higher advertising revenues for ILL

ILL have signed the single largest deal with IMAX in India to provide truly encaptivating and completely immersive viewing experience

Focus on high quality video and audio:

ILL owns the high quality DCI Compliant 2K & 4K Digital Projection Systems across all the screens in India

High-definition picture quality, strong 3D capabilities and high frame rate (HFR) (can go up to 60 fps)

ILL has been one of the early adopters of Dolby ATMOS sound technology. Excellent acoustic systems and distortion free sound

Focus on service and ambience:

Focus on providing world class ambience.

ILL with its in-app F&B ordering and Qbuster service, is able to considerably reduce its queue size and transaction time

Emphasis on safety, comfort and convenience

Focus On Strong Technology, Unmatched Service And Ambience

Focus On Technology

Focus on high quality video and audio:

Focus on service and ambience:

Content – Oct 2017

36

Blade Runner 2049

Release Date: 6th October 2017Cast: Ryan Gosling, Harrison FordDirector: Denis VilleneuveBanner: Warner Bros. Pictures

Chef

Release Date:6th October 2017

Cast: Saif Ali KhanDirector: Raja Krishna MenonBanner: T-Series

Secret Superstar

Release Date:19th October 2017Cast: Aamir KhanDirector: AdvaitChandanBanner: AamirKhan Productions

Golmaal Again

Release Date: 20th October 2017Cast: Ajay Devgan, Kareena Kapoor, Tusshar Kapoor, Arshad WarsiDirector: RohitShettyBanner: Phantom Films

Mersal

Release Date: 18th October 2017Cast: Vijay, Samantha, KajalDirector: Atlee KumarBanner: ThenandalStudio Ltd.

Geostorm (3D IMAX)

Release Date: 27th October 2017Cast: Gerard Butler, Abbie Cornish, Ed HarrisDirector: Dean DevlinBanner: Warner Bros., SkydanceMedia, Electric Entertainment

37

Content Pipeline – Nov 2017

Ittefaq

Release Date: 3rd November 2017Cast: SiddharthMalhotra, AkshayKhanna, Sonakshi SinhaDirector: Abhay ChopraBanner: Red ChilliesEntertainment, BR Films, Dharma Productions

Thor Ragnarok (3D IMAX)

Release Date: 3rd November 2017Cast: Chris Hemsworth, Benedict Cumberbatch, Idris Elba, Jaimie AlexanderDirector: Taika WaititiBanner: Marvel Studios

Qarib Qarib Single

Release Date: 10th November 2017Cast: Irfan Khan, Parvathy Thirovithu, Bijendra Kala, Neha DhupiaDirector: TanujaChandraBanner: Zee Studios

Shaadi Mein ZaroorAana

Release Date: 10th November 2017Cast: Rajkumar Rao, Kirti Kharbanda, GovindNamdevDirector: Vinod BachchanBanner: SoundaryaProduction

Tumhari Sulu

Release Date: 17th November 2017Cast: Vidhya BalanDirector: Suresh TriveniBanner: T-Series, Ellipsis Entertainment

Justice League (3D IMAX)

Release Date: 17th November 2017Cast: Gal Gadot, Jason Momoa, Amber Heard, Henry Cavill, Ben Affleck, Amy AdamsDirector: Zack SnyderBanner: DC Films, RatPacEntertainment, Atlas Entertainment, Cruel and Unusual Films

38

Content Pipeline – Dec 2017

Padmavati

Release Date: 1st December 2017Cast: DeepikaPadukone, RanveerSinghDirector: Sanjay Leela BhansaliBanner: BhansaliProductions

Parmanu - The Story Of Pokhran

Release Date: 8th December 2017Cast: John Abraham, Boman Irani, Diana PentyDirector: Abhishek SharmaBanner: KriArjEntertainment, J A Entertainment, KYTA Productions, Zee Studios

Fukrey Returns

Release Date: 8th December 2017Cast: Richa Chadha, Pulkit Samrat, Ali Fazal, Varun SharmaDirector: MrigdeepSingh LambaBanner: Excel Entertainment

Star Wars : Episode VIII - The Last Jedi ( 3D IMAX)

Release Date: 15th December 2017Cast: Benecio Del Toro, Carrie Fisher, Adam Driver, Andy SerkisDirector: Rian JohnsonBanner: Lucasfilm Ltd.

Tiger Zinda Hai

Release Date: 22nd December 2017Cast: Salman Khan, Katrina KaifDirector: Ali Abbas ZaffarBanner: Yash Raj Films

Jumanji (3D IMAX)

Release Date: 22nd December 2017Cast: Dwayne Johnson, Jack Black, Kevin Hart, Tom HollandDirector: Jake KasdanBanner: Columbia Pictures, Matt TolmachProductions, Radar Pictures, Seven Bucks Productions

39

Content Pipeline – Jan 2018

Insidious Chapter 4

Release Date: 5th January 2018Cast: Spencer Locke, Josh Stewart, Bruce DavinsonDirector: Adam RobitelBanner: BlumhouseProductions, Stage 6 Films

Bharat Ane Nenu

Release Date: 11th January 2018Cast: Mahesh Babu, Kiara AdvaniDirector: KoratalaSivaBanner: DVV Entertainments

Sonu Ke Titu Ki Sweety

Release Date:12th January 2018Cast: Karthik Aaryan, Nusrat Bharucha, Sunny Singh NajjarDirector: Luv RanjanBanner: T-Series, Luv Films

Thaana SerndhaKootam

Release Date:12th January 2018Cast: Surya, KeerthySureshDirector: VighneshShivanBanner: Studio Green

Padman

Release Date: 26th January 2018Cast: Akshay Kumar, Sonam Kapoor, Radhika ApteDirector: R BalkiBanner: MrsFunnybones Movies

Downsizing

Release Date:12th January 2018Cast: Kristen Wiig, Matt Damon, Cristoph WaltzDirector: Alexander Payne Banner: Ad Hominem Enterprises

Atria Mall Worli Mumbai

40

Q2FY18 Results Update

Q2 & H1FY18 Result Highlights

41

Q2 FY18 YoY Comparison

297.4

311.3

290 .0

295 .0

300 .0

305 .0

310 .0

315 .0

Q2FY17 Q2FY18

27.2 44.4

9.1%

14.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Q2FY17 Q2FY18

EBITDA EBITDA Margin

1.6 11.7 0.5%

3.8%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Q2FY17 Q2FY18

PAT PAT Margin

Revenue from Operations EBITDA PAT

H1 FY18 YoY Comparison

5% 63% 643%

Revenue from Operations EBITDA PAT

Note: EBITDA excludes Other Income (non-operating)

10% 35% 65%

634.3

698.7

600 .0

620 .0

640 .0

660 .0

680 .0

700 .0

720 .0

H1FY17 H1FY18

89.3 120.3

14.1%17.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

-

20.0

40.0

60.0

80.0

100 .0

120 .0

140 .0

H1FY17 H1FY18

EBITDA EBITDA Margin

26.5 43.8

4.2%

6.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

H1FY17 H1FY18

PAT PAT Margin


42

Q2 & H1FY18 Results Analysis – Revenue Break Up Analysis

179.4 185.6

70.2 67.1

23.8 32.124.0

26.4297.4

311.3

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Q2FY17 Q2FY18

392.9 424.8

150.8155.2

45.165.545.4

53.1634.3

698.7

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

H1FY17 H1FY18

%Share Q2FY17 Q2FY18 H1FY17 H1FY18

Net Box Office 60.3% 59.6% 61.9% 60.8%

Net Food & Beverage 23.6% 21.5% 23.8% 22.2%

Advertisement 8.0% 10.3% 7.1% 9.4%

Other Operating Revenues 8.1% 8.5% 7.2% 7.6%

10.3%

34.7%

-4.4%

3.5%

16.9%

45.1%

2.9%

8.1%

Q2 FY18 YoY Comparison H1 FY18 YoY Comparison


43

Q2FY18 Results Analysis – Top 5 Movies in INOX

TOP 5 Movies in INOX

GBOC – Gross Box Office Collection

Top 5 films accounted for 30% of Q2 FY18 GBOC revenues (51% in Q2 FY17)

Q2FY18Toilet

Ek Prem KathaSpiderman

HomecomingJab Harry Met

SejalJagga Jasoos Mubarakan

Footfalls [Lacs] 12.44 6.23 5.39 6.05 5.61

GBOC [INR Crs.] 24.75 13.11 11.96 11.39 10.33

Q2 & H1FY18 Results Analysis – Key Operational Metrics

44

Overall Footfalls & Occupancy%

127.0 127.5

282.4 285.7

26% 25%29%

28%

3%

8%

13%

18%

23%

28%

33%

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Q2FY17 Q2FY18 H1FY17 H1FY18

Footfalls (Lacs) Occ%

Comparable Properties Footfalls & Occupancy%

124.4 118.4

272.6 259.8

27%25%

29%28%

3%

8%

13%

18%

23%

28%

33%

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0


Footfalls (Lacs) Occ%

183 186 178 190

-

50

100

150

200

250

300


184 187 179 191

-

50

100

150

200

250

300


Overall Average Ticket Price (ATP) [INR] Comparable Properties Average Ticket Price (ATP) [INR]

Footfalls with Management properties: Q2FY18 – 134.06 lacs, H1FY18 – 302.05lacs

Note: All above charts exclude management properties

0.4% 1.1%

1.3% 6.4%

-4.9% -4.7%

1.7% 6.4%

45


Spend Per Head (SPH) [INR] Food & Beverages – Net Contribution (%)

Advertisement Revenue [INR Crs.] Other Operating Revenue [INR Crs.]

65 65 63 65

-

10

20

30

40

50

60

70

80

90

100


73.9% 75.0% 75.7% 76.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%


23.8 32.1

45.1

65.5

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0


24.0 26.4

45.4 53.1

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0


3.3%

34.7% 45.1% 10.3% 16.9%

46


Film Distributor Share [%]

46.3% 46.5%44.2% 44.9%

36.2% 36.8% 34.7% 35.5%

0.0 %

10. 0%

20. 0%

30. 0%

40. 0%

50. 0%

60. 0%

70. 0%


Distributor Share On NBOC Distributor Share On GBOC

NBOC (Net Box Office Collections) , GBOC (Gross Box Office Collections)

5.5 5.3 10.9 10.6

11.0 11.0

22.7 23.2 10.9 10.8

22.2 23.0

14.0 9.6

26.2 22.7

41.3 36.8

82.1 79.5

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0


Employee Benefits Property Rent & Conducting Fees

CAM, Power & Fuel, R&M Other Overheads

Other Overheads Per Operating Screen (INR Lacs)

-31.0%

-0.4%

0.4%

-2.6%

-13.4%

3.6%

1.8%

-2.5%

47

Annexure

INSIGNIA CR2 Nariman PointMumbai

Per Screen Economics

48

Per Screen Economics: (In Rs Lakhs)

ATP (Rs) 178

SPH (Rs) 62

Occupancy (%) 30%

Revenue from Operations 314.0

Net Box Office Revenue (NBOC) 196.1

Food & Beverages 71.7

Advertising Income 23.6

Other Revenues 22.6

Costs:

Distributors' Share @ 44% of NBOC 86.3

Other Exhibition Cost 2.5

Food & Beverages Cost 19.4

Lease Rental & Hire Charges 45.6

CAM, Power & Fuel, R&M 42.9

Employee Benefits Expense (excluding corporate overheads) 13.0

Other Overheads 40.1

EBITDA 64.2

EBITDA Margin % 20.4%

Depreciation 19.2

EBIT 45.0

Gross Capex 250.0

Working Capital 0.0

Capital Employed 250.0

ROCE % 18.0%

Per Screen Economics: (In Rs Lakhs)

Fixed Costs - ~ 57% - 58% of total costs 141.6

Contribution (Sales – Variable costs) 205.8

Breakeven Contribution (to cover fixed costs) 141.6

Breakeven Revenues 216.0

Breakeven NBOC 134.9

Breakeven Occupancy % 21.0%

Per Screen Economics:

% Breakup of Revenues

Net Box Office Collections (NBOC) 62% - 63%

Food & Beverages 23% - 24%

Advertising Income 8% - 9%

Other Income 7% - 8%

Per Screen Economics:

Long term steady occupancy levels of ~ 30% and stable ATP.

Gradually improving share of F&B and advertising revenues.

EBITDA margins per screen of ~ 20% - 21%.

ROCE per screen of ~ 15% - 20%.

Significant scope for improvement in ROCE per screen driven by increasing share of F&B revenues (~ 75% contribution) and advertising revenues (~ 95% contribution) in the future.

Per Screen Economics is as per IND-AS and post GST impact

Shareholding Structure

49

Source: BSE

Public/Others, 14.70%

INOX Benefit Trust, 4.51%

DII, 18.31%

FII, 13.78%

Promoter & Promoter

Group, 48.70%

% Shareholding as of Sep 2017

Source: Company Source: Company

Key Institutional Investors – Sep 2017 % Holding

DSP Blackrock Small MF 6.7%

Reliance MF 3.5%

Birla Sunlife 3.3%

Kuwait Investment Authority Fund 3.0%

Goldman Sachs India Limited 2.6%

Morgan Stanley 2.5%

ICICI Prudential MF 1.7%

Aadi Financial Advisors LLP 1.5%

TATA MF 1.2%

Sundaram MF 1.1%

Source: BSE

Market Data As on 6th Nov 2017

Market Capitalisation (INR Crs.) 2,531

Price (INR) 262.4

No. of Shares Outstanding (Crs.) 9.6

Face Value (INR) 10.0

52 week High/Low (INR) 305.85/1930

50

100

150

200

250

300

350

Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17

Share Price Performance

Consolidated P&L Statement

50

Particulars (INR Crs.) Q2 FY18 Q2 FY17 YoY % Q1FY18 QoQ % H1 FY18 H1 FY17 YoY % FY17

Revenue from Operations 311.3 297.4 4.7% 387.4 -19.6% 698.7 634.3 10.2% 1,220.7

Exhibi tion Cost 88.5 86.6 2.1% 107.1 -17.4% 195.5 181.6 7.7% 345.3

Food & Beverages Cost 16.8 18.3 -8.5% 20.5 -18.1% 37.2 36.7 1.4% 68.1

Employee Benefi ts Expense 23.3 21.8 6.9% 23.0 1.5% 46.3 43.4 6.5% 86.4

Lease Rental & Hire Charges 48.5 44.0 10.1% 52.2 -7.1% 100.6 90.5 11.2% 185.8

CAM, Power & Fuel , R&M 47.5 43.5 9.3% 52.6 -9.7% 100.1 88.5 13.2% 174.5

Other Expenses 42.3 56.0 -24.3% 56.3 -24.8% 98.6 104.3 -5.4% 214.6

EBITDA 44.4 27.2 63.4% 75.9 -41.4% 120.3 89.3 34.7% 146.1

EBITDA Margin % 14% 9% 513 bps 20% -530 bps 17% 14% 314 bps 12%

Depreciation & Amortisation 21.5 20.8 3.5% 21.5 -0.2% 43.0 41.0 4.8% 84.1

Impairment Loss on PP&E 0.7 - 0.6 11.6% 1.3 - 1.3

Other Income 2.9 2.1 35.8% 2.3 24.3% 5.2 4.6 13.1% 9.1

Finance Cost 7.3 5.8 25.4% 7.2 1.7% 14.5 11.6 24.8% 25.3

Exceptional Items - - - - - -

Share of Profi t from Joint Ventures (0.0) (0.0) -61.3% 0.0 -198.7% 0.0 (0.0) -101.4% 0.1

PBT 17.8 2.7 559.8% 48.9 -63.5% 66.7 41.2 61.9% 44.6

Current Tax 6.7 1.9 247.8% 17.8 -62.3% 24.5 15.7 55.9% 14.7

Deferred Tax (0.6) (0.8) -30.9% (1.1) -47.6% (1.6) (1.1) 51.9% 0.9

Tax perta ining to earl ier years - - - - - (1.6)

PAT 11.7 1.6 643% 32.1 -64% 43.8 26.5 65% 30.6

PAT Margin % 4% 1% 322 bps 8% -453 bps 6% 4% 208 bps 2.5%

Earnings Per Share (EPS) 1.27 0.17 643% 3.49 -64% 4.77 2.89 65% 3.33

Consolidated Balance Sheet Statement

51

Assets (INR Crs.) Sep-17 Mar-17

Non-Current Assets:

Property, Plant & Equipment 670.8 672.8

Capital work-in-progress 72.0 62.6

Goodwill 17.5 17.5

Other Intangible Assets 11.7 12.4

Investments in Joint Ventures 0.1 0.1

Other Investments 1.0 1.2

Loans 71.7 69.0

Other Financial Assets 81.4 71.8

Deferred Tax Assets (Net) 37.6 48.3

Tax Assets (Net) 8.4 5.5

Other Non Current Assets 77.6 77.6

Total Non Current Assets 1,050 1,039

Current Assets:

Inventories 9.3 9.1

Other Investments 67.6 10.7

Trade Receivables 68.8 46.6

Cash and Bank Balances 16.8 9.8

Bank Balances Other than above 2.2 3.4

Loans 4.3 4.4

Other Financial Assets 0.3 0.3

Other Current Assets 18.4 21.0

Total Current Assets 187.7 105.3

Total Assets 1,237.2 1,144.1

Equity & Liabilities (INR Crs.) Sep-17 Mar-17

Equity:

Equity Share Capital 96.2 96.2

Other Equity 533.5 489.0

Interest in Inox Benefit Trust, at cost (32.7) (32.7)

Equity attributable to owners of the company 597.0 552.5

Non-Controlling Interest 0.0 0.0

Total Equity 597.0 552.5

Non-current liabilities:

Borrowings 270.0 291.9

Other Financial Liabilities 2.6 3.1

Provisions 10.2 10.0

Other Non-current Liabilities 80.5 82.9

Total of Non-Current Liabilities 363.3 388.0

Current Liabilities:

Borrowings - -

Trade Payables 102.4 88.4

Other Financial Liabilities 98.0 64.8

Other Current Liabilities 59.9 36.0

Provisions 16.5 14.4

Current Tax Liabilities (Net) 0.0 0.0

Total of Current Liabilities 276.9 203.6

Total Equity & Liabilities 1,237.2 1,144.1

Thank YouBalesh Talapady GM – Business AnalysisINOX Leisure Ltd.Contact+91-22-4062 6927Email: [email protected]

52

Documents

INVESTOR PRESENTATION - d18hry5vavz86j.cloudfront.net · • Personalized ticketing and butler-on-call ... PAT PAT Margin % ... Operational Summary 28 Film Distributor Share (%)