Ufo Moviez India Ltd. · NSE:UFO
Ufo Moviez India — Q1 FY2018 Earnings Presentation
34 slides from Ufo Moviez India's earnings presentation, Oct 23, 2017
Slide 1: Q1FY18 Results Presentation
Q1FY18 Results Presentation Updated on October 23, 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 5,390* 4,032 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 Total Revenue (INR Mn) EBITDA (INR Mn) & Margin (%) 1,544 27.4% 26.5% 1,354 409 372 14.0% 10.0% Q1FY17 Q1FY18 Q1FY17 Q1FY18 PBT (INR Mn) & Margin (%) PAT* (INR Mn) & Margin (%) 8.9% 13.7% 9.7% 5.6% 211 137 132 75 60.5% 82.7% Q1FY17 Q1FY18 Q1FY17 Q1FY18 *PAT after Mi
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 28-Apr BAAHUBALI - THE CONCLUSION 3,161 28-Apr BAAHUBALI - THE CONCLUSION 1,239 23-Jun TUBELIGHT 3,138 23-Jun D. J. DUVVADA JAGANNADHAM 847 19-May HALF GIRL
Slide 11: Driving Wide Spread Release of Movies on UFO Network
Driving Wide Spread Release of Movies on UFO Network Top 10 Gujarati Top 10 Kannada Release # of Release # of Movie Movie Date Screens Date Screens 19-May KARSANDAS PAY & USE 304 14-Apr CHAKRAVARTHY 274 2-Jun AAV TARU KARI NAKHU 115 12-May MAASTHIGUDI 232 26-May SAMAY CHAKRA TIME SLOT 80 26-May PATA
Slide 12: Consolidated Revenue Mix
Consolidated Revenue Mix (INR Mn) Q1FY18 Q1FY17 397 333 493 25% 32% 522 29% 34% 1,537 1,349 522 619 34% 46% Exhibitors Revenue Distributor Revenue Advertisement Revenue (INR Million) Q1FY18 Q1FY17 Growth Advertisement revenue 493 397 24.2% Virtual Print Fees - E-Cinema 237 230 3.1% Virtual Print Fee
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 4,032 Capacity – Annualised* 2,513 2,653 3,670 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Top 50 Cities Rest of India Q1FY18 Multiplex Single Multiplex Single # of UFO Screens 458 542 610 2,422 Full House Seating Capacity –
Slide 15: Advertisement Revenue Analysis
Advertisement Revenue Analysis INR Million Government + PSU Corporate + Hyperlocal 493 397 51% 45% 55% 49% Q1FY17 Q1FY18 Includes Caravan Talkies Revenues in both Government + PSU and Corporate and Hyperlocal In Cinema Advertisement Q1FY18 Q1FY17 Ad Revenue / Screen for the period (Avg) (Rs.) 117,56
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 Increased Scale of Im
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) 230 237 231 223 Gross Revenue Net Revenue Q1FY17 Q1FY18 D – Cinema - VPF Domestic Revenue (INR Mn) International Revenue (INR Mn) 222 185 153 149 111 87 48 27 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Domestic includes revenues gener
Slide 19: Operating Parameter – VPF Revenue India
Operating Parameter – VPF Revenue India # of Screens Q1FY18* Q1FY17 E – Cinema 3,836 3,509 D – Cinema 1,554 1,488 Total 5,390 4,997 # of Screens as on June 30, 2017 VPF Revenue / Screen (Average**) (in Rs.) Q1FY18 Q1FY17 E – Cinema Gross 64,258 65,165 E – Cinema Net 62,750 63,367 D – Cinema Gross 11
Slide 20: Operating Parameter – VPF Revenue International
Operating Parameter – VPF Revenue International Number of Screens Q1FY18* Q1FY17 Total 807 902 # of Screens as on June 30, 2017 VPF Revenue / Screen (Average**) (in Rs.) Q1FY18 Q1FY17 D – Cinema Gross 106,456 171,409 D – Cinema Net 33,619 54,283 *Total # of VPF Generating Screens only in Middle East
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) Q1FY18 Q1FY17 Growth Revenue from Operations 1,537 1,349 13.9% Other Income 7 5 58.3% Total Revenue 1,544 1,354 14.0% Total Expenses 1,135 982 15.6% EBITDA 409 372 10.0% Depreciation and Amortisation 206 246 -16.5% EBIT 203 126 61.7% Finance Cost 26 39 -3
Slide 23: Consolidated Expenditure Analysis (Ind AS)
Consolidated Expenditure Analysis (Ind AS) Expenses as a % of Total Revenue Q1FY18 Q1FY17 1) Total Operating Direct Cost 46.5% 43.1% Key Operating Direct Cost Components i) Advertisement revenue share payment 9.8% 8.9% ii) VPF D-Cinema share payment to D-Cinema Exhibitors 8.6% 13.1% iii) Purchase of
Slide 24: Consolidated Balance Sheet (Ind AS)
Consolidated Balance Sheet (Ind AS) Assets Equity and Liability 30-Jun-17 31-Mar-17 30-Jun-17 31-Mar-17 (INR Mn) (INR Mn) Non-Current Assets Equity Property, plant and equipment 2,558 2,585 Equity Share Capital 276 276 Capital work-in-progress 89 69 Other Equity Other Intangible assets 29 31 Reserve
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 Q1FY17 Ind AS Q1FY17 FY17 Ind AS FY17 (INR Mn) IGAAP Adjustments Ind AS IGAAP Adjustments Ind AS Revenue from Operations 1,342 7 1,349 5,972 18 5,990 Other Income 4 1 5 17 0 17 Total Revenue 1,346 8 1,354 5,989 18 6,007 Total Expenses 982 0 982 4,144 (6) 4,138 EBI
Slide 28: Reconciliation of Profits for Previous Periods
Reconciliation of Profits for Previous Periods (INR Mn) Q4FY17 Q1FY17 FY17 Net profit attributable to shareholders under IGAAP 195 98 632 Impact on account of: Fair value of Financial instruments 5 3 17 Actuarial (gain)/loss on employee defined benefit plans 3 (1) 2 Impact of Business combination ac
Slide 29: Annexure
UFO digital cinema Annexure
Slide 30: 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 31: 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 30
Slide 32: 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 31
Slide 33: Shareholding
Shareholding Marquee Institutional Investors* (% of Total # of shares) June 30, 2017 SBI Mutual Fund Promoters 28.13% Foreign Venture Capital Investors 19.03% Reliance Capital Asset Management Foreign Portfolio Investors 3.58% DSP Blackrock Mutual Funds 21.95% Equinox Partners Insurance Companies 1.
Slide 34: 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