Prime Focus Limited · NSE:PFOCUS
Prime Focus — Q3 FY16 Earnings Presentation
34 slides from Prime Focus's earnings presentation, May 2016
Slide 1: Prime Focus Limited Q3 & FY16 Investor Presentation
Prime Focus Limited Q3 & FY16 (March) Investor Presentation May 2016
Slide 2: Safe Harbor
Safe Harbor Certain statements in this document may be forward-looking statements. Such forward- looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ m
Slide 3: Agenda
Agenda I. Q3 & FY16 Financial Performance………………………………..4-16 II. Industry Opportunity……………………..…………………………17-23 III. About us……………………..……………………………………..24-28 IV. Annexure - Financials……………………………………………….......29-32 - Shareholding pattern………………………………….…….....33 3 Q3 & FY16 Earnings Presentation 3
Slide 4: FY16: Significant synergies unlocked
FY16: Significant synergies unlocked Post three transformational transactions – PFW-DNeg, PFT-DAX & PFL-RMW mergers Moving towards the end of phase 2 of integration . . with increased momentum across businesses 12 months ending Mar-16 Consolidated Cross-selling opportunities Revenues at materializin
Slide 5: With strengthened leadership across businesses
With strengthened leadership across businesses Established as world’s largest globally integrated media services powerhouse Creative Services DNeg bagged 2nd consecutive Oscar for Best Visual Effects in Ex Machina, following its last year’s win for Interstellar Phased Integration progressing wel
Slide 6: FY16: Delivers strong performance driven by robust growth across businesses
FY16: Delivers strong performance driven by robust growth across businesses Figures in Rs Million; Consolidated financials Net Revenues EBITDA / Margin Mar'15 Mar'16 14.2% 17.3% 13.7% 17.1% 46% YoY 19,010 3,259 27% YoY 55% YoY 83% YoY 13,828 2,397 13,044 10,894 1,782 1,551 9 Month 12 Month* 9 Month
Slide 7: Q3FY16: Revenues up 11%
Q3FY16: Revenues up 11% Figures in Rs Million; Consolidated financials Net Revenues EBITDA / Margin EBITDA EBITDA Margin 1,200 30% 11% YoY 4,657 1,051 1,000 25% 829 4,205 25.0% 800 20% 600 17.8% 15% 400 10% 200 5% 0 0% Q3FY15 Q3FY16 Q3FY15 Q3FY16 Revenue growth of 11% on back of expansion of VFX b
Slide 8: 12MFY16 Segmental Analysis
12MFY16 Segmental Analysis Figures in Rs. Million; Consolidated financials Segment-wise revenues 53% YoY 14,237 12M Mar-15 12M Mar-16 9,292 33% YoY 25% YoY 2,992 2,248 1,234 1,544 Creative Services ** Tech / Tech Enabled Services India FMS* Segment-wise Operating EBITDA Segment-wise Operating EBITDA
Slide 9: 9MFY16 Segmental Analysis
9MFY16 Segmental Analysis Figures in Rs. Million; Consolidated financials Segment-wise revenues 26% YoY 10,265 9M Mar-15 9M Mar-16 8,140 31% YoY 35% YoY 2,299 1,760 881 1,189 Creative Services Tech / Tech Enabled Services India FMS* Segment-wise Operating EBITDA Segment-wise Operating EBITDA Margins
Slide 10: Q3FY16 Segmental Analysis
Q3FY16 Segmental Analysis Figures in Rs. Million; Consolidated financials Segment-wise revenues 16% YoY 3,465 Q3FY15 Q3FY16 2,982 11% YoY 55% YoY 713 794 277 428 Creative Services Tech / Tech Enabled Services India FMS* Segment-wise Operating EBITDA Segment-wise Operating EBITDA Margins 715 Creative
Slide 11: PFT continues to grow at non linear growth rate
PFT continues to grow at non linear growth rate Expands global presence with new International customer wins Revenue & EBITDA Margin Revenue by Contract type 1,000 33.3% 32.1% 34% 28.1% 900 26.0% 26.0% 26.6% 25.7% 803 794 29% Project 713 800 702 702 Based 700 21.4% 25.0% 24% 579 26% 600 488 468 19%
Slide 12: Debt profile
Debt profile Consolidated debt at $192mn (Rs 12,725 mn) in Mar-16 compared to $198mn (Rs 13,077 mn) in Dec-15 • Cash and Cash Equivalents / Deposits of Rs 1,136 mn at the end of Mar-16 Focus on Deleveraging of balance sheet • Sold non-core real estate assets for US$20 mn, proceeds of which shall
Slide 13: Moving towards end of Phase of integration; Operating performance ahead of plan
Moving towards end of Phase 2 of integration; Operating performance ahead of plan EBITDA Margin at 15% EBITDA Margin up by 2-4% EBITDA Margin up by 4-5% Phase 1 Phase 2 Phase 3 • Bundled offering of VFX & 3D • Leverage strength of • Partner of choice for M&E services conversion services in mov
Slide 14: Key projects delivered in Q3 include current box office hits
Key projects delivered in Q3 include current box office hits International Bollywood Captain America: Batman V Superman: Civil War Dawn Of Justice TVCs The Brothers Grimsby The Danish Girl 14 Q3 & FY16 Earnings Presentation 14
Slide 15: Strong pipeline of ongoing projects in Creative Services
Strong pipeline of ongoing projects in Creative Services Fast 8 Dunkirk Geostorm Fantastic Beasts Jason Bourne Inferno and Where to Find Them The Mummy Star Trek Beyond Wonder Woman 15 Q3 & FY16 Earnings Presentation 15
Slide 16: Strong pipeline of ongoing projects in India FMS
Strong pipeline of ongoing projects in India FMS Te3n Udta Punjab Housefull 3 Raees M. S. Dhoni: The Jagga Jasoos Untold Story Madaari Raman Raghav MohenJo Daro 2.0 16 Q3 & FY16 Earnings Presentation 16
Slide 17: Industry Opportunity
Industry Opportunity la
Slide 18: Media services on a high growth trajectory
Media services on an high growth trajectory; De-risked to recessionary pressures with services models Recent 3D Movies are Overseas collections: top Grossers of 2015 like 67% BO collections of Jurassic World, Star Wars: Avengers: Age of Ultron The Force Awakens & Growing Content were from overseas A
Slide 19: Expanding E&M industry globally
Expanding E&M industry globally…. Global E&M spend growing at 5.1%. . Global box office collections ($bn). . . 2.50 2.23 110.00 36.4 38.3 105.00 34.7 35.9 2.00 1.74 32.6 104.62 100.00 31.6 1.50 95.00 25 26 27 90.00 22 24 1.00 21 85.00 0.50 85.60 80.00 - 75.00 11 10 11 11 10 11 2014 2019 Global E&M S
Slide 20: …with growing opportunities in key segments
…with growing opportunities in key segments Growing VFX revenues ($bn). . . . And no of Global 3D Screens (‘000). . . US/Canada EMEA Asia Pacific Latin America 2.10 1.96 74.6 1.77 64.8 1.61 1.33 1.35 53.1 45.5 36.3 2008 2009 2010 2011 2012 2013 2011 2012 2013 2014 2015 Source: Frank N. Magid Associa
Slide 21: 3D Market – Strong Resurgence in 2015
3D Market – Strong Resurgence in 2015, on strong growth path in 2016 8 of the 10 highest grossing films of 2015 were 74,500 3D equipped screens to released in 3D support upcoming big 3D releases 3D Prime Movie Collections* Focus Star Wars: The Force 1 48% Awakens 2 Jurassic World 48% 3 The Martian 4
Slide 22: Indian E&M industry on higher growth trajectory
Indian E&M industry on higher growth trajectory Figures in Rs Billion E&M revenues set to double by 2020.. .. With 1.6x growth from film revenue 2260 227 138 125 126 1157 112 1026 918 93 821 728 2011 2012 2013 2014 2015 2020 2011 2012 2013 2014 2015 2020 Target segments to grow at higher than indust
Slide 23: Digital content solutions a large market opportunity
Digital content solutions a large market opportunity Total Addressable market is expected to North America, the largest market while Asia grow at CAGR of 5% and Latin America, fastest growing markets Figures in $ bn Latin America, 8% TAM 12.9 12.3 North 11.7 America, Asia Pacific, 11.1 41% 24% 10.
Slide 24: About us
About us
Slide 25: PFL…World's Largest Global Integrated Media Services player
PFL…World’s Largest Global Integrated Media Services player Rs 19bn (ttm revenues) enterprise with unmatched offerings for Global M&E Industry Creative Services - “A-Level” Pedigree in Hollywood” Tier-1 Visual Effects Player 2 consecutive Oscar & 30% Market Share in 3D wins for Interstellar & Conver
Slide 26: All businesses on accelerated growth
All businesses on accelerated growth Creative Services Tech / Tech Enabled Services India FMS Pioneered ERP solutions for M&E Largest Global independent Tier 1 Leading player in Indian post with CLEARTM Visual effects player production market Leader in cloud solutions for M&E ~30% market s
Slide 27: Fuelling success with marquee clients across the globe
Fuelling success with marquee clients across the globe Creative services Technology services Leading Hollywood and Bollywood studios Leading broadcasters, studios, brands, sports and digital businesses 27 Q3 & FY16 Earnings Presentation 27
Slide 28: 'WorldSourcing' model providing unmatched competitive edge
‘WorldSourcing’ model providing unmatched competitive edge 28 4 continents | 5 time zones | 16 locations | 24/7 – 365 days Q3 & FY16 Earnings Presentation 28
Slide 29: Annexure
Annexure
Slide 30: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement 9M 9M 12M 12M Q3 % YoY % QoQ % YoY Particulars (Rs Million) Q3 FY15 Q2 FY16 ending ending ending ending FY16 Variance Variance Variance Mar-16 Mar-15 Mar-16 Mar-15 Net sales / income from operations 4,657 4,205 11% 4,685 -1% 13,828 10,894 27% 19,010 13,044 Total
Slide 31: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement As on March 31, Particulars (Rs Million) As on June 30, 2015 2016 Shareholder's Equity 9,550 11,118 Total Debt 10,867 8,198 Minority Interest 1,322 1,540 Other Long Term Liabilities 3,192 3,926 Provisions 65 49 Trade Payables 2,012 2,505 Deferred Tax 125 93 Other
Slide 32: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement 9M 9M 12M 12M % YoY % YoY Q2 % QoQ % YoY Particulars (Rs Million) Q3 FY16 Q3 FY15 ending ending ending ending Varianc Variance FY16 Variance Variance Mar- 16 Mar-15 Mar-16 Mar-15 e Net sales / income from operations 428 277 55% 373 15% 1,189 881 35% 1,544 1,543 0%
Slide 33: PFL Shareholding Pattern
PFL Shareholding Pattern As on 31st March- 2016 Outstanding shares – 299mn Others Public, 7.9% SCPE, 22.0% Promoters, 35.0% RMW, 35.1% 33 Q3 & FY16 Earnings Presentation 33
Slide 34: About Prime Focus Limited
About Prime Focus Limited Prime Focus Limited (PFL), the world’s largest independent integrated media services powerhouse, employs over 6,000 professionals in 16 cities across 4 continents and 7 time zones. We provide end-to- end creative services (visual effects, stereo 3D conversion and animation)