Prime Focus Limited · NSE:PFOCUS
Prime Focus — H1 FY21 Earnings Presentation
30 slides from Prime Focus's earnings presentation, November 2020
Slide 1: Investor Presentation November 2020
Investor Presentation November 2020
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: Contents
Contents 1 H1 FY21 Performance … 4-12 2 About Prime Focus … 13-23 3 Annexures … 24-27
Slide 4: H1 FY21 Performance
H1 FY21 Performance
Slide 5: H1FY21 highlights - Resilient performance despite COVID19 disruptions
H1FY21 highlights - Resilient performance despite COVID19 disruptions Consolidated Change YoY Income DNEG nominated for a Royal Television Society Award in the -7.5% Effects Category for its work on Rs. 1,265 Cr YoY BBC’s ‘World on Fire’ 3% India, FMS DNEG’s work on ‘Devs’ nominated Divisional 10% f
Slide 6: H1FY21 – Cost Optimization led to PAT positive 6M FY21
H1FY21 – Cost Optimization led to PAT positive 6M FY21 Revenue Adjusted EBITDA1 1,368 1,265 400 29.2% 35.0% -7.5% 350 50.0% 30.0% YoY 300 YoY 370 25.0% 250 18.0% 20.0% 200 150 246 15.0% 10.0% 100 50 5.0% - 0.0% H1FY20 H1FY21 H1FY20 H1FY21 Figures in Rs Crore; Consolidated financials Adjusted EBITDA
Slide 7: Creative Services shows resilience; higher EBITDA despite lower revenue
Creative Services shows resilience; higher EBITDA despite lower revenue Stable Revenues despite COVID Headwinds Revenues1 ▪ Strong execution pipeline of projects in Film VFX, TV/OTT and Animation backed by 1,146 credible studios led to limited COVID disruption on the revenue front. With shoots -2.3%
Slide 8: Working on top Hollywood projects
Working on top Hollywood projects Upcoming Movie Projects Upcoming TV / OTT Projects Apr-21 Oct-21 Dune F9: The Fast Saga Jun- 21 Riviera Season 3 Away Jul- 21 Star Trek Discovery Foundation Jungle Cruise Wonder Woman 1984 8 8 Investor Update Q2 FY21
Slide 9: Tech/Tech Enabled Services – Signs of recovery
Tech/Tech Enabled Services – Signs of recovery Revenue Rebound in EBITDA Margins – at ~38% for H1FY21 156 131 ▪ COVID Impact on revenues has been limited – backed by strong client relations ▪ Business turnaround plan accelerated on the back of COVID - company has shown promise by delivering positive
Slide 10: India FMS – Heavily Impacted by COVID
India FMS – Heavily Impacted by COVID Revenues Highlights: 78 ▪ Delivered revenue of Rs 37 Cr with Adj, EBITDA margin at ~ 35%+ ▪ With relaxation in government imposed restrictions and shoots beginning from 37 August, revenues beginning to start trickling in slowly; however recovery will still take
Slide 11: Top Bollywood Projects
Top Bollywood Projects Upcoming Movie Projects Recent TV Commercials Netflix Kellogs https://www.youtube.com https://www.youtube.com /watch?v=vJlntV2iFEQ /watch?v=0BTVID2lGOg 83 Coolie No 1 Gangubai Kathiawadi Vivo IPL 2020 Google https://www.youtube.com https://www.youtube.com /watch?v=AvTXSeDmho /
Slide 12: Debt profile
Debt profile ▪ Consolidated Net Debt of Rs. 3,287 Cr as on 30th September 2020 o Includes Operating Lease Liability of ~ Rs. 600 Cr added to the Balance Sheet on adoption of IndAS 116 ▪ LTM Net Debt / Adj EBITDA (Pre IndAS 116) has improved to ~3.6x from 4x+ levels earlier ▪ The Company and its subs
Slide 13: About Prime Focus
About Prime Focus
Slide 14: PFL@ FY20
PFL@ FY20 Delivered creative services in 4 of top 10 global B.O. hits released in FY20 Revenues1 Adj. EBITDA2 & EBITDA Margin (%) 950 FY16 FY17 23.0% FY18 23.7% FY19 FY20* 28.0% Robust & growing Order Book despite 1 VES For work on 3,013 Chernobyl 850 20.3% 20.4% 2,645 750 17.6% 23.0% COVID outbreak
Slide 15: Corporate Structure
Corporate Structure Founders Reliance IDBI Trusteeship Affirma Other 34.9% 10.5% 35.08% 24.5% 21.9% 7.9% (Malhotra Family) Group Services Ltd. Capital Public Prime Focus LTD. (India) Listed on BSE /NSE (Market Cap# Rs 1,114 cr) 73.75%; 71.3%; 3.5% by Ambit, PFL full diluted rest held by basis manage
Slide 16: Strong Leadership in all 3 verticals
Strong Leadership in all 3 verticals Tier-1 Visual Effects Creative 5 Player & 30% Market Services Oscars Share in 3D Conversion • Visual Effects, including 3D Conversion and Animation Leader in cloud solutions for Media &Entertainment Tech/Tech industry Enabled • CLEARTM Media ERP Suite • Cloud-bas
Slide 17: Creative Services: World's No. 1 independent Tier 1 player
Creative Services: World’s No. 1 independent Tier 1 player Strong Leadership Proven Expertise 5 Oscar wins for Tier-1 Visual Effects Player House of choice for Inception, Interstellar, visually enhanced Ex Machina, Blade services Runner 2049 & First Man Top Grossers Unprecedented scale 89% US$354 mn
Slide 18: Technology Services: Pioneer & leader in cloud solutions for M&E industry
Technology Services: Pioneer & leader in cloud solutions for M&E industry Owns & operates World’s only Continue to have a robust Strong revenue model with Revenue at Rs. 3.0 bn, 91% Annuity contribution & hybrid cloud enabled Media order book to be executed 9% share ERP platform – CLEAR™ over next 3
Slide 19: CLEAR Media ERP – One Software for the entire M&E Enterprise
CLEAR™ Media ERP – One Software for the entire M&E Enterprise Production Create Transform Distribute Marketing Creation Across Supply Chain Broadcast Opportunity to Across Content Lifecycle be Oracle & Across Enterprise Enterprise SAP for M&E Applications Industry Transform Legal Marketing Workflow
Slide 20: India FMS: Dominating on home turf
India FMS: Dominating on home turf Offering complete media services across the spectrum. . Film Equipment Film chemical Editing/Color Film Studios Film Shooting treatment Correction Restoration & image Digital Distribution enhancement 2D to 3D Animation VFX & Animation High Margin in range of 30-40%
Slide 21: 'WorldSourcing' model = unmatched competitive edge
‘WorldSourcing’ model = unmatched competitive edge Global network providing highest quality, fastest time to market & most efficient pricing India (Mumbai, Kolkata, Noida, Hyderabad, Chandigarh, Bengaluru, Chennai and Goa) Canada • Over 7,000 skilled employees • Over 600 employees for MONTREAL • App
Slide 22: Robust financial performance ...
Robust financial performance ... Strong Revenue Growth Strong Growth in Adj. EBITDA Margins Operating profit Revenue 700 23.0% 23.7% 17% CAGR 25.0% Operating Profit 12% CAGR 20.3% 20.5% 30% CAGR 600 500 617 20.0% 440 17.1% 450 3,013 500 544 537 372 2,645 400 348 353 501 15.0% 350 2,178 2,314 400 300
Slide 23: .. and continued focus on leverage
.. and continued focus on leverage Reported Net Debt / EBITDA Net Debt – Rs 25 bn 5.7x 4.3x 4.4x 3.0x 4.3x 4.0x 2.4x FY14 FY15 FY16 FY17 FY18 FY19 FY20* Interest cost <10% on the back of higher share of foreign currency loans As on 30th March, 2013 As on 31st Mar, 2020 Proportion of $ linked debt Ov
Slide 24: Annexure
Annexure
Slide 25: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Crore) Q2FY21 Q2FY20 Q1FY21 H1FY21 H1FY20 Variance Variance Variance Net sales / income from operations 652 684 -5% 605 8% 1,257 1,360 -8% Other Income 4 5 -15% 3 32% 8 7 3% Total Income 657 689 -5% 608 8% 1,265 1,368 -8% Total E
Slide 26: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Crores) Q2FY21 Q2FY20 Q1FY21 H1FY21 H1FY20 Variance Variance Variance Net sales / income from operations 17 32 -46% 7 148% 25 68 -64% Other income 6 7 -6% 6 2% 12 10 22% Total Income 24 39 -39% 13 80% 37 79 -53% Total Expenditure 1
Slide 27: Balance Sheet - Assets
Balance Sheet - Assets Standalone Consolidated Particulars 30-Sep-20 30-Sep-19 30-Sep-20 30-Sep-19 Assets Non-Current Assets Property, Plant and Equipment 235 359 393 533 Capital Work In Progress 10 8 38 18 Goodwill - - 1,073 1,037 Other Intangible assets 0 1 449 444 Rights to Use Asset 302 240 860
Slide 28: Balance Sheet – Equity & Liabilities
Balance Sheet – Equity & Liabilities Standalone Consolidated Particulars 30-Sep-20 30-Sep-19 30-Sep-20 30-Sep-19 Equity and Liabilities Equity Equity Share Capital 30 30 30 30 Share warrant money received - - - - Other Equity 1,185 1,056 380 434 Equity attributable to equity holders of the parent 1,
Slide 29: PFL Shareholding Pattern
PFL Shareholding Pattern As on 30th September 2020 Outstanding shares – 299 mn Others Public, 7.99% IDBI Trusteeship Promoters, 34.96% Services Ltd., 24.49% Affirma Capital, RMW Financial 21.99% Services , 10.57% 29 Investor Update Q2 FY21 29
Slide 30: Contact us
Contact us Alok Gupta Prime Focus Limited Phone: +91 8291070073 Email: alok.gupta@primefocus.com About Prime Focus Limited Prime Focus Limited (PFL), the world’s largest independent integrated media services powerhouse, employs over 9,000 professionals in 18 cities across 5 continents. We provide en