Slide 1: Cover letter to stock exchanges
FR'M‘EFQCPSD June 4, 2019 To, To, The National Stock Exchange of India Limited BSE Limited Listing Department, Listing Department, Exchange Plaza, Phiroze Jeejebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai —400 001 Mumbai —400 051 Fax Nos.: 22723121/2037/2039 Fax Nos.: 2659823
Slide 2: Investor Presentation June 2019
Investor Presentation June 2019
Slide 3: 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 4: PFL @ a glance FY19
PFL@ FY19 Delivered creative services in 8 of top 10 global B.O. hits released in FY19 Revenues1 9% CAGR 90 0 Adj. EBITDA2 & EBITDA Margin (% ) FY1 6 FY1 7 13% CAGR FY1 8 FY1 9 26 ,0% $500 mn+ Order Book 4 Oscar th in 5 years for work on First Man 2 2 645 23,0% 23,5% for First Man & 80 0 24 ,0% 20,3
Slide 5: Contents
Contents 1 FY19 Performance … 5-16 2 About Prime Focus … 17-26 3 Annexures … 27-32
Slide 6: FY19 Performance
FY19 Performance
Slide 7: FY19 highlights
FY19 highlights: Robust growth in revenues with EBITDA margins maintained at 20%+ level Consolidated DNEG won its Fifth Income VFX Oscar for its work 14.3% on First M an at 91st Rs. 2,645 Cr YoY Delivered creative services in 8 of top 10 Adjusted global B.O. hits released in FY19 Adjusted EBITDA EBI
Slide 8: Strong topline growth driven by Creative Services
Strong topline growth driven by Creative Services Operating Revenue 1 Adjusted EBITDA1 2 645 2 314 14% YoY 700 30,0% 600 544 537 25,0% 500 400 23,5% 20,0% 300 200 20,3% 15,0% 100 - 10,0% FY18 FY19 FY18 FY19 Figures in Rs Crore; Consolidated financials Adjusted EBITDA Margin Consolidated revenues g
Slide 9: Q4FY19 – Robust performance led by Creative Services
Q4FY19 – Robust performance led by Creative Services Revenue Adjusted EBITDA1 21% YoY 710 589 200 182 28,0% 26,0% 180 24,0% 160 140 124 25,6% 22,0% 20,0% 18,0% 120 16,0% 100 21,1% 14,0% 12,0% 80 10,0% 60 8,0% 40 6,0% 4,0% 20 2,0% - 0,0% Q4FY18 Q4FY19 Q4FY18 Q4FY19 Adjusted EBITDA Margin Figures in R
Slide 10: FY19 – Revenue to Adjusted EBITDA
FY19 – Revenue to Adjusted EBITDA (INR cr) 2017 2018 2019 CAGR YoY Commentary Revenues 2,154 2,257 2,523 5% 12% One time FX gain of Rs.19 Cr reported in Q3 adjusted against Other Income 24 23 43 23% 87% one-time expenses as shown below FX Gain -41 34 80 Total Revenues 2,137 2,314 2,647 11% 14% Perso
Slide 11: Finance Cost
Finance Cost Q1 Q2 Q3 Q4 Increase in cash interest costs to Rs.152cr INR Cr FY17 FY18 FY19 from Rs.118cr YoY – on the back of increase FY19 FY19 FY19 FY19 in Debt largely in Creative Services division Interest 100 118 31 38 37 46 152 Finance costs include charges on account of Fair Value Impact
Slide 12: Creative Services revenue and EBITDA continue to grow
Robust performance by Creative Services, revenue and EBITDA continue to grow Robust growth in revenues with strong execution Revenues1 Strong execution of VFX projects and continued broad basing in revenues with higher share coming from OTT / TV & Feature Animation – broadening base of revenues fr
Slide 13: Working on top Hollywood projects
Working on top Hollywood projects Upcoming Movie Projects Upcoming TV Projects June-19 June-19 June-19 May-19 Aug-19 2019 Godzilla: King of Men In Black: Hobbs & Shaw The New Pope Big little Lies The Rook Monsters International Sep-19 Aug-19 Jun-19 Jun-20 Jul-19 2019 The Art Of Racing In The New Mut
Slide 14: Tech/Tech Enabled Services revenues
Tech/Tech Enabled Services revenues at Rs 302 Cr Revenue growth impacted due to: Revenues Strong headwinds in FY19. Some promise and signs of recovery in Q4 with revenues 50 0 growing by 8% over Q3 FY19 45 0 40 0 Overall drop in revenues is primarily due to drop in non-recurring tech revenue 35
Slide 15: India FMS delivers steady performance with high profitability
India FMS delivers steady performance with high profitability Revenues Highlights: 184 Steady growth in revenues up 14% YoY at Rs. 184 Cr with EBITDA margin 14% stable at ~35% YoY Worked on the recently released Student of the Year 2 and other projects like 162 Manikarnika, Luka Chuppi , Sonchir
Slide 16: Indian Film and Media Services continues to remain strong
Indian Film and Media Services continues to remain strong Upcoming Movie Projects Recent TV Commercials Rajasthan Royals Coca-cola https://www.youtube.com https://www.youtube.com /watch?v=W0RLiEHrYbg /watch?v=9VejRNOPxSo Phonepe Hotstar https://www.youtube.com https://www.youtube.com /watch?v=Y2Pqqg
Slide 17: Debt profile
Debt profile Consolidated Net Debt of Rs. 2,328 Cr as on 31st March, 2019 o Successfully redeemed SCPE NCDs in full during the year FY19 Net Debt / EBITDA maintained at ~ 4.3x levels The Company and its subsidiaries continue to consider options to raise funding through equity (including throug
Slide 18: About Prime Focus
About Prime Focus
Slide 19: Corporate Structure
Corporate Structure Founders Reliance Standard Other 34.97% 35.08% 22.0% 7.95% (Malhotra Family) Group Chartered PE Public Promoter has recently announced infusion of Rs 330 cr through Warrants at PFL at Rs.106 per share. The proceeds are largely expected to be used to pay off Debt; Proforma holding
Slide 20: Strong Leadership in all 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 21: 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 82% US$310 mn
Slide 22: Technology Services: Pioneer & leader in cloud solutions for M&E
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, hybrid cloud enabled Media order book to be executed 81% Annuity contribution & 11% share ERP platform – CLEAR™ over next
Slide 23: 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 SAP for M&E Enterprise Applications Industry Transform Legal Marketing Workflow
Slide 24: 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 25: '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 • Approx. 1/5t
Slide 26: Robust financial performance
Robust financial performance ... Strong Revenue Growth Strong Growth in Adj. EBITDA Margins Operating profit Revenue 9% CAGR Adj EBITDA Adj EBITDA Margin Operating Profit 13% CAGR 23% CAGR - 12mth numbers 23,7% 372 2 645 600 23,0% 25,0% 400 348 353 2 314 20,3% 350 2 178 500 17,1% 1 901 544 537 20,0%
Slide 27: Continued focus on leverage
.. and continued focus on leverage Reported Net Debt / EBITDA 5,7x 4,3x 4,4x 3,0x 4,3x Net Debt – Rs 23 bn 2,4x FY14* FY15 FY16** FY17 FY18 FY19 Interest cost <10% on the back of higher share of foreign currency loans As on 30th March, 2013 As on 31st Mar, 2019 Proportion of $ linked debt Overseas d
Slide 28: Annexure
Annexure
Slide 29: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Crores) Q4FY19 Q4FY18 Q3FY19 FY19 FY18 Variance Variance Variance Net sales / income from operations 690 596 16% 677 2% 2,602 2,291 14% Other Income 21 5 293% 2 1213% 43 23 88% Total Income 710 602 18% 678 5% 2,645 2,314 14% Tota
Slide 30: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Crores) Q4FY19 Q4FY18 Q3FY19 FY19 FY18 Variance Variance Variance Net sales / income from operations 49 35 38% 23 113% 143 145 -2% Other income 8 2 212% 3 115% 41 27 53% Total Income 57 38 49% 27 113% 184 172 7% Total Expenditure 3
Slide 31: Consolidated Balance Sheet (Assets)
Consolidated Balance Sheet (Assets) Standalone Consolidated Particulars (Rs Crores) 31-Mar-18 31-Mar-19 31-Mar-18 31-Mar-19 Assets Non-Current Assets Property, Plant and Equipment 390 388 767 732 Capital Work In Progress 2 20 6 24 Goodwill - - 973 1,024 Other Intangible assets 2 184 524 689 Intangib
Slide 32: Consolidated Balance Sheet (Liabilities)
Consolidated Balance Sheet (Liabilities) Standalone Consolidated Particulars 31-Mar-18 31-Mar-19 31-Mar-18 31-Mar-19 Equity and Liabilities . Equity Equity Share Capital 30 30 30 30 Share warrant money received 83 83 83 83 Other Equity 1,005 1,007 480 416 Equity attributable to equity holders of the
Slide 33: PFL Shareholding Pattern
PFL Shareholding Pattern As on 31st March - 2019 Outstanding shares – 299 mn Others Public; 7,95% SCPE; 22,00% Promoters; 34,97% RMW Financial Services ; 35,08% 32 32 Investor Update Q4 FY19
Slide 34: Contact us
Contact us Alok Gupta Nitesh Kumar/ Seema Shukla Prime Focus Limited Four-S Services Pvt Ltd Phone: +91 8291070073 Phone: +91 98915 70250/+91 124 4251442 Email: alok.gupta@primefocus.com Email: nitesh.kumar@four-s.com seema@four-s.com www.primefocus.com © 2016 Prime Focus Limited. All Rights Reserv
Slide 35: About Prime Focus Limited
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 end-to-end creative services (visual effects, stereo 3D conversion and animation), technology produ