Ufo Moviez India Ltd. · NSE:UFO
Ufo Moviez India — Q3 FY18 Earnings Presentation
34 slides from Ufo Moviez India's earnings presentation, Feb 12, 2018
Slide 1: Q3&9MFY18 Results Presentation
Q3&9MFY18 Results Presentation February 12, 2018 * 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 5,314* 3,943 Digital Screens in India In Cinema Advertising Screens ~2.14 million wi
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 Q3FY18 YoY Comparison Total Revenue (INR Mn) EBITDA (INR Mn) & Margin (%) PBT (INR Mn) & Margin (%) PAT* (INR Mn) & Margin (%) 1,502 29.5% 15.1% 9.1% 8.6% 1,402 26.2% 12.7% 443 367 227 179 137 120 21.2% 12.3% 6.6% 17.2% Q3FY17 Q3FY18 Q3FY17 Q3FY18 Q3FY17 Q3FY18 Q3FY
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 22-Dec TIGER ZINDA HAI 2,947 20-Oct RAJA THE GREAT (WELCOME TO MY WORLD) 651 20-Oct GOLMAAL AGAIN 2,820 13-Oct RAJU GARI GADHI 2 627 20-Oct SECRET SUPERSTAR
Slide 11: Driving Wide Spread Release of Movies on UFO Network
Driving Wide Spread Release of Movies on UFO Network Top 10 Malayalam Top 10 Gujarati Release # of Release # of Movie Movie Date Screens Date Screens 27-Oct VILLAIN 300 17-Nov LOVE NI BHAVAI 253 6-Oct SOLO 246 27-Oct BEST OF LUCK LAALU 188 17-Nov PUNYALAN PRIVATE LIMITED 205 10-Nov LOVE YOU YAAR 70
Slide 12: Consolidated Revenue Mix
Consolidated Revenue Mix (INR Million) Q3FY18 Q3FY17 9MFY18 9MFY17 378 427 444 1,359 1,339 1,341 1,151 494 27% 28% 26% 30% 31% 31% 30% 36% 1,391 1,502 4,330 4,443 519 631 1,632 1,951 37% 42% 38% 44% Advertisement Revenue Distributor Revenue Exhibitor Revenue (INR Mn) Q3FY18 Q3FY17 Growth 9MFY18 9MFY
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 3,943 Capacity – Annualised* 3,737 2,552 2,503 Q3FY17 Q3FY18 Q3FY17 Q3FY18 Top 50 Cities Rest of India Q3FY18 Multiplex Single Multiplex Single # of UFO Screens 473 516 679 2,275 Full House Seating Capacity –
Slide 15: Advertisement Revenue Analysis
Advertisement Revenue Analysis INR Million Government + PSU Corporate + Hyperlocal 1,341 1,359 46% 52% 427 494 50% 50% 54% 48% 50% 50% Q3FY17 Q3FY18 9MFY17 9MFY18 Includes Caravan Talkies Revenues in both Government + PSU and Corporate + Hyperlocal In Cinema Advertisement Q3FY18 Q3FY17 9MFY18 9MFY17
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) 784 746 808 791 Gross Revenue Net Revenue 261 249 269 263 Q3FY17 Q3FY18 9MFY17 9MFY18 D – Cinema - VPF Domestic Revenue (INR Mn) International Revenue (INR Mn) Sunset Impact 624 561 497 437 Sunset Impact 306 218 192 173
Slide 19: Operating Parameter – VPF Revenue India
Operating Parameter – VPF Revenue India # of Screens* Q3FY18 Q3FY17 9MFY18 9MFY17 E – Cinema 3,732 3,531 3,732 3,531 D – Cinema 1,582 1,521 1,582 1,521 Total 5,314 5,052 5,314 5,052 # of Screens as on December 31, 2017 VPF Revenue / Screen (Average**) (in Rs.) Q3FY18 Q3FY17 9MFY18 9MFY17 E – Cinema
Slide 20: Operating Parameter – VPF Revenue International
Operating Parameter – VPF Revenue International Number of Screens Q3FY18* Q3FY17 9MFY18* 9MFY17 Total 416 902 416 902 # of Screens as on December 31, 2017 VPF Revenue / Screen (Average**) (in Rs.) Q3FY18 Q3FY17 9MFY18 9MFY17 D – Cinema Gross 99,618 180,300 353,390 557,971 D – Cinema Net 34,742 57,24
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) Q3FY18 Q3FY17 Growth 9MFY18 9MFY17 Growth Revenue from Operations 1,390 1,502 -7.4% 4,330 4,443 -2.5% Other Income 12 - NA 19 10 87.9% Total Revenue 1,402 1,502 -6.6% 4,349 4,453 -2.3% Total Expenses 1,035 1,059 -2.3% 3,196 3,080 3.8% EBITDA 367 443 -17.2
Slide 23: Consolidated Expenditure Analysis (Ind AS)
Consolidated Expenditure Analysis (Ind AS) Expenses as a % of Total Revenue Q3FY18 Q3FY17 9MFY18 9MFY17 1) Total Operating Direct Cost 41.9% 40.5% 44.2% 41.0% Key Operating Direct Cost Components i) Advertisement revenue share payment 12.4% 8.6% 11.1% 8.8% ii) VPF D-Cinema share payment to D-Cinema
Slide 24: 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 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 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 26: Consolidated P&L Ind AS Adjustments
Consolidated P&L Ind AS Adjustments Q3FY17 Ind AS Q3FY17 9MFY17 Ind AS 9MFY17 (INR Mn) IGAAP Adjustments Ind AS IGAAP Adjustments Ind AS Revenue from Operations 1,486 16 1,502 4,423 20 4,443 Other Income 2 (1) 0 10 0 10 Total Revenue 1,488 14 1,502 4,433 20 4,453 Total Expenses 1,054 5 1,059 3,079 1
Slide 27: Reconciliation of Profits for Previous Periods
Reconciliation of Profits for Previous Periods (INR Mn) Q3FY17 9MFY17 FY17 Net profit attributable to shareholders under IGAAP 136 437 632 Impact on account of: Fair value of Financial instruments 3 12 17 Actuarial (gain)/loss on employee defined benefit plans - (1) 2 Impact of Business combination
Slide 28: Annexure
UFO digital cinema Annexure
Slide 29: 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 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: 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) December 31, 2017 SBI Mutual Fund Promoters 30.04% Foreign Venture Capital Investors 18.52% Reliance Capital Asset Management Foreign Portfolio Investors 3.65% DSP Blackrock Mutual Funds 20.73% Equinox Partners Insurance Companie
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