INVESTOR PRESENTATION - PVR Cinemas€¦ · Company Overview 128 Theatres 51 Cities India’s largest cinema chain Leadership position in India with approx. 40% share of Hollywood

INVESTOR PRESENTATION

June’17

Company Overview

128 Theatres

51 Cities

India’s largest cinema chain

Leadership position in India with approx. 40% share of

Hollywood Box Office and approx. 25% share of

Bollywood Box Office

5 mn sq.ft of operational retail space, another 4 mn sq.ft

under development

Revenues of 21,817 mn INR and EBITDA of 3,759 mn INR 1

Market Cap of 66 bn INR 2

[1] For FY 16-17 [2] Market Cap as on 30th June’17

587

Screens

75 Million Guests

Promoters 20%

Multiples Private Equity

14%

Warburg Pincus 14%

FIIs 29%

Domestic Mutual Funds

12%

Others 11%

Share Holding as on 30th June’17

2

3

4

18 STATES

50 CITIES

126 CINEMAS

579 SCREENS

1,32,026 SEATS

Pan India Presence With Highest Market Share

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

Movie going is the number 1 entertainment option for people in

India

Largest number of movies released in the world (1,200 movie

releases and over 1.95 billion movie goers annually)

Domestic box office collections contribute 70% of the film

industry revenue

6 Source: KPMG FICCI Report 2017

70%

8%

1%

10%

11%

Source: KPMG FICCI Report 2017 & MPAA Theatrical Market Statistics Report 2016, 1 USD = 65 INR 7

India – A High Growth Box Office Market

India has moved ahead of UK & France to become 4th Largest movie market in the world

125

85

82

61

57

30

26

7

USA

France

Spain

UK

Gemany

China

Japan

India

Industry is projected to grow @ 8% CAGR in next 5 years

TOP 7 INTERNATIONAL BOX OFFICE MARKET (USD BILLION)

INDIAN FILM INDUSTRY REVENUES (INR BILLION)

NO.OF SCREENS PER MILLION POPULATION

GROWTH IN MULTIPLEXES

Under screened market with huge potential for growth

Modern day Multiplexes are growing & single screens are shutting down

7,300

2,200

2016 2009

9,500 10,600 9,675

925

PVR

Diversified Product

Offerings Strong Location

& Product Strategy

Cutting Edge Technology

Best in class concessions

Leader in Ad revenues

Comfort & Convenience

Premium guest

experience

8

Our Key Strengths

9

10

11

12

13

14

15

16

17

18

19

20

21

22

“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

23

Strong Location Strategy

PVR is the most preferred multiplex chain for Mall developers

Present in leading Indian malls (representative list)

Keeping In Step With Digital India

Partnership with technology aggregators

Own Website & Mobile App

Movie Calendar

Paper Less Ticketing

Tied up with BookMyShow, Paytm & Justdial to leverage growth in online penetration

Rising Online Penetration

Select and reserve your seat

Pre-book F&B and service on seat

To inform and excite consumers about the upcoming movies

QR Code - paper less ticketing

23%

33%

41%

51%

FY14 FY15 FY16 FY17

Online GBOC Contribution

24

40 46

53 64

72 81

FY12 FY13 FY14 FY15 FY16 FY17

F&B Spend per patron (INR)

Best In Class Concessions

Enhanced F&B offerings

Highest F&B spend per patron

25

Best In Class Concessions

Huge potential for growth

PVR

F&B Spend Per Head as a % of Average Ticket Price

27% 31% 36% 46% 50%

59%

CJ CGV MajorCineplex

Cineworld Regal AMC Cineplex

F&B Spend Per Head as a % of Average Ticket Price

Data: Company Financials (12 months CY16)

International Chains

USA Canada UK Korea Thailand

26

India has an unique concept of intermission giving opportunity to sell concession twice

Relatively lower F&B spend vis-à-vis other global players

28% 29% 32% 36% 38% 41%


654 859

1,517 1,771

2,145

2,518


Advertisement Revenue (INR mn)1

Leader In Advertisement Revenues

Premium brand recognition leading to pricing premium

Partnership with multiple brands across sectors

Advertisement revenues 2X of the nearest competitor

27 [1] Consolidated

Strong brand with great locations and quality footfalls translating into partnerships with leading brands

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

4.7

7.3 6.9

3.9 5.0

3.5

FY 14-15 FY 15-16 FY 16-17

EBIDTA per screen (INR mn)1

PVR Inox

33.6 39.0 39.8

26.6 29.6 27.7

FY 14-15 FY 15-16 FY 16-17

Revenue per screen (INR mn)1

PVR Inox

2,097

3,559 3,759

1,310 1,967

1,551

FY 14-15 FY 15-16 FY 16-17

EBITDA (INR mn)

PVR Inox

14,859 19,130

21,817

9,036 11,683 12,298

FY 14-15 FY 15-16 FY 16-17

Revenues (INR mn)

PVR Inox

Superior Financial Performance vs Competition

PVR outperforms the industry 29

81% 142%

44% 32%

64% 77%

[1]Revenues & EBTIDA per screens are calculated based on average number of screens operational during the year

64%

60%

26% 46% 97%

23%

59 70 75

41 53 54

FY 14-15 FY 15-16 FY 16-17

Admits (mn) & Occupancy (%)

PVR Inox

Superior Operating Performance vs Competition

34%

29%

33%

28%

PVR outperforms the industry 30

31%

25%

44% 40% 30%

176

188 196

164 170

178

FY 14-15 FY 15-16 FY 16-17

ATP (INR)

PVR Inox

11% 10%

7%

64 72

81

55 58 62

FY 14-15 FY 15-16 FY 16-17

SPH (INR)

PVR Inox

30% 25% 16%

1,771 2,145

2,518

815 910 962

FY 14-15 FY 15-16 FY 16-17

Sponsorship Income (INR mn)

PVR Inox

136% 162%

117%

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

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. Ajay Bijli Chairman and Managing

Director

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

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34

[1] Exceptional items in financial results includes write-off of assets on a property

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%

EBIT 2,375 2,408 -1%

Finance Cost 806 839 -4%

PBT before Exceptional item 1,569 1,569 0.03%

Exceptional Item1 (41) (116) 65%

PBT after Exceptional item 1,528 1,453 5%

Tax 570 467 22%

PAT 958 986 -3%

Box Office 52%

F&B 25%

Sponsorship Revenues

11%

Other Businesses

5% Other Operating

Income 6% Other

Income 1%

FY 16-17 Revenue Mix

Film Hire Charges

21%

Cost of Food & Beverages

6%

Personnel Expenses

10%

Rent 18%

Repairs and Maintenance

4%

Electricity & CAM 12%

Other Expenses

11%

FY 16-17 Expenditure Mix (% of Total Revenues)

156 167 168 178 188 196


ATP (INR)

22

34 39

42 46

50


Cities

25

37

60 59

70 75


Footfalls (mn)

166

351 421

464 516

579


Screens

35

Historical Performance

36

Strong Financial Performance

5,298 8,154

13,588 14,859

19,130 21,817


Revenues (INR mn)

858 1,259

2,230 2,097

3,559 3,759


EBITDA (INR mn)

252

443 504

116

981 958


PAT (INR mn)

THANK YOU !

Documents

INVESTOR PRESENTATION - PVR Cinemas€¦ · Company Overview 128 Theatres 51 Cities India’s largest cinema chain Leadership position in India with approx. 40% share of Hollywood