Ufo Moviez India Ltd. · NSE:UFO
Ufo Moviez India — H1 FY2018 Earnings Presentation
36 slides from Ufo Moviez India's earnings presentation, Nov 30, 2017
Slide 1: Q2&H1FY18 Results Presentation
Q2&H1FY18 Results Presentation November 30, 2017 * in terms of number of screens.
Slide 2: Safe Harbour
Safe Harbour The presentation has been prepared by UFO Moviez India Limited together with its subsidiaries (the “Company”), for informational purpose only and does not constitute or form part of an offer, solicitation or invitation of any offer to purchase or subscribe for any securities of the Comp
Slide 3: UFO Moviez at a Glance
UFO Moviez at a Glance India’s Largest Digital Cinema Network and In-Cinema Advertising Platform Indian Film Industry’s Largest India’s Largest In-cinema Content Distribution Highway High Impact Advertising Platform 5,384* 4,021 Digital Screens in India In Cinema Advertising Screens ~2.2 million wit
Slide 4: UFO's Innovative Solution for Analog Cinema Market
UFO’s Innovative Solution for Analog Cinema Market Analog Cinema Era beset with … UFO’s Innovative Solution Issues… Satellite Delivery ‘Solution provider’, not In-cinema Advertising of Cinema ‘Product provider’ proposition Satellite Solution Viewers Pan India movie release End to end technology Conn
Slide 5: Philosophy – Value Creation Across the Value Chain
Philosophy – Value Creation Across the Value Chain Digitization has redefined film economics by enabling pan-India releases on day one and improving viewing experience. Aggregated ad inventory across a fragmented exhibitor base has created a unique ad platform with high effectiveness and reach. UFO
Slide 6: Our Vision
Our Vision Recreating Growth Lever Increasing Screen Density in Tier 2 and Tier 3 Phase VII Cities through asset light franchisee model NOVA Cinemaz Leveraging Phase Leveraging on Existing Infrastructure Phase VI to build newer Synergetic Businesses like Caravan, Club Cinema and UFO Framez Phase V M
Slide 7: Shareholder Value Creation
Shareholder Value Creation Initial high capital intensity over; poised to generate higher revenues with lower Capital Intensity incremental capex. Capital Efficiency Network Effect and Operational Efficiencies lead to increasing RoCE. Capital Allocation Intent to grow only in synergistic businesses
Slide 8: Financial and Operating Highlights
Financial and Operating Highlights 7
Slide 9: Consolidated Financial Highlights
Consolidated Financial Highlights Q2FY18 YoY Comparison Total Revenue (INR Mn) EBITDA (INR Mn) & Margin (%) PBT (INR Mn) & Margin (%) PAT* (INR Mn) & Margin (%) 1,601 34.9% 1,392 19.3% 12.5% 27.1% 559 13.2% 8.1% 308 378 200 184 113 13.0% 32.4% 40.3% 43.6% Q2FY17 Q2FY18 Q2FY17 Q2FY18 Q2FY17 Q2FY18 Q2
Slide 10: Driving Wide Spread Release of Movies on UFO Network
Driving Wide Spread Release of Movies on UFO Network Top 10 Hindi Top 10 Telugu Release # of Release # of Movie Movie Date Screens Date Screens 29-Sep JUDWAA - 2 2,739 22-Sep JAI LAVAKUSA 1,049 1-Sep BAADSHAHO 2,637 29-Sep SPYDER 982 4-Aug JAB HARRY MET SEJAL 2,524 1-Sep PAISA VASOOL 630 21-Jul MUNN
Slide 11: Driving Wide Spread Release of Movies on UFO Network
Driving Wide Spread Release of Movies on UFO Network Top 10 Kannada Top 10 Malayalam Release # of Release # of Movie Movie Date Screens Date Screens 15-Sep BHARJARI 273 1-Sep VELIPADINTE PUSTHAKAM 266 29-Sep TARAK 251 1-Sep NJANDUKALUDE NATTIL ORIDAVELA 224 1-Sep MUGULU NAGE 199 7-Jul TIYAAN 222 11-
Slide 12: Consolidated Revenue Mix
Consolidated Revenue Mix (INR Million) Q2FY18 Q2FY17 H1FY18 H1FY17 372 425 373 865 914 707 517 947 27% 31% 23% 30% 31% 24% 33% 32% 1,389 1,592 2,926 2,941 592 702 1,114 1,320 42% 44% 38% 45% Advertisement Revenue Distributor Revenue Exhibitor Revenue* (INR Mn) Q2FY18 Q2FY17 Growth H1FY18 H1FY17 Grow
Slide 13: In Cinema Advertising Performance
In Cinema Advertising Performance 12
Slide 14: In Cinema Advertisement Operating Parameter
In Cinema Advertisement Operating Parameter in Mn Seats # of UFO Screens Full House Seating 4,021 Capacity – Annualised* 2,537 2,626 3,748 Q2FY17 Q2FY18 Q2FY17 Q2FY18 Top 50 Cities Rest of India Q2FY18 Multiplex Single Multiplex Single # of UFO Screens 472 533 634 2,382 Full House Seating Capacity –
Slide 15: Advertisement Revenue Analysis
Advertisement Revenue Analysis INR Million Government + PSU Corporate + Hyperlocal 914 865 43% 52% 517 372 42% 54% 57% 48% 58% 46% Q2FY17 Q2FY18 H1FY17 H1FY18 Includes Caravan Talkies Revenues in both Government + PSU and Corporate + Hyperlocal In Cinema Advertisement Q2FY18 Q2FY17 H1FY18 H1FY17 Ad
Slide 16: Repositioned and Retooled Caravan Talkies for Growth
Repositioned and Retooled Caravan Talkies for Growth Caravan Offering in 2016 Caravan ‘Now’ • Conventional branding media for media dark • 360 degree activation market • Brand experience solution Sunset movie screening for footfalls + Customer Research + Brand Activation Impact Improvement in Increa
Slide 17: Theatrical Revenues
UFO digital cinema Theatrical Revenues
Slide 18: Theatrical revenues from Distributors
Theatrical revenues from Distributors E – Cinema - VPF Domestic Revenue (INR Mn) 523 498 539 528 Gross Revenue Net Revenue 293 278 302 296 Q2FY17 Q2FY18 H1FY17 H1FY18 D – Cinema - VPF Domestic Revenue (INR Mn) International Revenue (INR Mn) Sunset Impact 432 335 388 297 Sunset Impact 210 204 215 182
Slide 19: Operating Parameter – VPF Revenue India
Operating Parameter – VPF Revenue India # of Screens* Q2FY18 Q2FY17 H1FY18 H1FY17 E – Cinema 3,817 3,549 3,817 3,549 D – Cinema 1,567 1,506 1,567 1,506 Total 5,384 5,055 5,384 5,055 # of Screens as on September 30, 2017 VPF Revenue / Screen (Average**) (in Rs.) Q2FY18 Q2FY17 H1FY18 H1FY17 E – Cinema
Slide 20: Operating Parameter – VPF Revenue International
Operating Parameter – VPF Revenue International Number of Screens Q2FY18* Q2FY17 H1FY18* H1FY17 Total 807 902 807 902 # of Screens as on September 30, 2017 VPF Revenue / Screen (Average**) (in Rs.) Q2FY18 Q2FY17 H1FY18 H1FY17 D – Cinema Gross 87,674 201,762 193,483 375,547 D – Cinema Net 28,034 65,5
Slide 21: Financial Performance
UFO digital cinema Financial Performance
Slide 22: Consolidated P&L Statement (Ind AS)
Consolidated P&L Statement (Ind AS) (INR Mn) Q2FY18 Q2FY17 Growth H1FY18 H1FY17 Growth Revenue from Operations 1,389 1,592 -12.8% 2,926 2,941 -0.5% Other Income 3 9 -65.4% 10 13 -23.1% Total Revenue 1,392 1,601 -13.0% 2,936 2,954 -0.6% Total Expenses 1,014 1,042 -2.7% 2,150 2,024 6.2% EBITDA 378 559
Slide 23: Consolidated Expenditure Analysis (Ind AS)
Consolidated Expenditure Analysis (Ind AS) Expenses as a % of Total Revenue Q2FY18 Q2FY17 H1FY18 H1FY17 1) Total Operating Direct Cost 43.6% 39.5% 45.2% 41.2% Key Operating Direct Cost Components i) Advertisement revenue share payment 11.2% 8.8% 10.4% 8.9% ii) VPF D-Cinema share payment to D-Cinema
Slide 24: Consolidated Balance Sheet (Ind AS)
Consolidated Balance Sheet (Ind AS) Assets Equity and Liability 30-Sept-17 31-Mar-17 30-Sept-17 31-Mar-17 (INR Mn) (INR Mn) Non-Current Assets Equity Property, plant and equipment 2,516 2,585 Equity Share Capital 276 276 Capital work-in-progress 141 69 Other Equity Other Intangible assets 28 31 Rese
Slide 25: Major areas impacted due to adoption of Ind AS
Major areas impacted due to adoption of Ind AS Item Treatment under Ind AS Treatment under previous IGAAP Virtual Print Fee Fixed one time VPF from distributors is recognised Fixed one time Virtual print fees received from over estimated life of movie (2 weeks) in the ratio of distributors of the fi
Slide 26: Major areas impacted due to adoption of Ind AS
Major areas impacted due to adoption of Ind AS Item Treatment under Ind AS Treatment under previous IGAAP Investment in Mutual Fund, OCPS, Such investments are measured at fair value and Such investments are measured at cost. CCPS, Warrants mark to market difference is recognised in P & L. Business
Slide 27: Consolidated P&L Ind AS Adjustments
Consolidated P&L Ind AS Adjustments Q2FY17 Ind AS Q2FY17 H1FY17 Ind AS H1FY17 (INR Mn) IGAAP Adjustments Ind AS IGAAP Adjustments Ind AS Revenue from Operations 1,592 - 1,592 2,932 9 2,941 Other Income 7 2 9 13 - 13 Total Revenue 1,599 2 1,601 2,945 9 2,954 Total Expenses 1,043 (1) 1,042 2,025 (1) 2
Slide 28: Reconciliation of Profits for Previous Periods
Reconciliation of Profits for Previous Periods (INR Mn) Q2FY17 H1FY17 FY17 Net profit attributable to shareholders under IGAAP 203 301 632 Impact on account of: Fair value of Financial instruments 6 9 17 Actuarial (gain)/loss on employee defined benefit plans - (1) 2 Impact of Business combination a
Slide 29: Reconciliation of Other Equity for Previous Period
Reconciliation of Other Equity for Previous Period (INR Mn) 31-Mar-17 Other Equity under IGAAP 5,507 Impact on account of: Fair value of Financial instruments (1) Actuarial (gain)/loss on employee defined benefit plans (2) Impact of Business combination accounting (1,688) Allocation of losses in sub
Slide 30: Key Financial Ratios
Key Financial Ratios RoCE (%) RoE (%) 14.93% 14.72% 19.24% 19.26% 12.83% 13.09% 17.63% 11.49% 14.34% 10.10% 12.01% 12.66% FY13 FY14 FY15 FY16 FY17* H1FY18* FY13 FY14 FY15 FY16 FY17* H1FY18* Net Debt** (INR Mn) Net Debt / EBITDA (X) 0.83 1,108 0.65 691 507 0.32 24 0.01 -520 -0.30 -744 -0.40 FY13 FY14
Slide 31: Annexure
UFO digital cinema Annexure
Slide 32: Advertisement Revenue – 5 Years
Advertisement Revenue – 5 Years INR Mn Government + PSU Corporate + Hyperlocal 1,790 1,578 FY13 – FY17 45% 1,167 Revenue CAGR 27% 999 48% 46% 695 41% 19% 55% 52% 81% 59% 54% FY13 FY14 FY15 FY16 FY17 # of Screens with Ad Rights 3,071 3,592 3,784 3,713 3,745 Annual Ad Revenue / Screen (Avg) 243,081 29
Slide 33: Region wise Distribution of Advertisement Screens
Region wise Distribution of Advertisement Screens East North West South 1,419 1,510 1,487 1,000 943 970 724 728 736 641 555 529 FY15 FY16 FY17 32
Slide 34: City wise Distribution of Advertisement Screens
City wise Distribution of Advertisement Screens Other Cities Tier 1 Cities Metro Cities 392 401 425 320 327 335 3,043 2,987 2,965 FY15 FY16 FY17 33
Slide 35: Shareholding
Shareholding Marquee Institutional Investors* (% of Total # of shares) September 30, 2017 SBI Mutual Fund Promoters 28.13% Foreign Venture Capital Investors 19.03% Reliance Capital Asset Management Foreign Portfolio Investors 3.68% DSP Blackrock Mutual Funds 21.60% Equinox Partners Insurance Compani
Slide 36: About Us
About Us UFO Moviez India Limited UFO Moviez India Limited (BSE Code: 539141; NSE Code: UFO) is India’s largest digital cinema distribution network and in-cinema advertising platform in terms of number of screens. UFO operates India’s largest satellite-based, digital cinema distribution network usin