Prime Focus Limited · NSE:PFOCUS
Prime Focus — Q4 FY18 Earnings Presentation
40 slides from Prime Focus's earnings presentation, June 2018
Slide 1: Investor Presentation June 2018
Investor Presentation June 2018
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: PFL@ FY18
PFL@ FY18 World’s largest independent & integrated media services powerhouse Rs 22,919 mn 25% FY13-FY18 Rs 5,435 mn xx% 23.7% FY18 Revenue Revenue CAGR FY18 PAT Adjusted EBITDA* Margin Adj. EBITDA Margin 9,000+ PFL Minds 18 cities in 5 continents Creative Services 78% Technology 15% India FMS 7% 3 r
Slide 4: Contents
Contents 1 FY18 & Q4 Performance … 5-16 2 Business Highlights … 17-22 3 About Prime Focus … 23-32 4 Annexures … 33-38
Slide 5: FY18 Performance
FY18 Performance
Slide 6: Steady performance in FY18
Steady performance in FY18 Revenue up 5.2% & EBITDA margin improved to 23.7% Rs 22,919 mn Revenue Revenue Up 5.2% YoY Contribution India, FMS; Tech/Tech 7% Enabled Services; Rs 5,435 mn 15% Adj. Up 8.4% YoY EBITDA1 EBITDA Margin at 23.7% Total Order $500 mn + Creative Services; 78% Up 11% + YoY Book
Slide 7: FY 2018 – Revenue to Adjusted EBITDA
FY 2018 – Revenue to Adjusted EBITDA Steady Growth in Revenue & Adjusted EBITDA (in INR mn) FY17 FY18 Growth Consolidated Income increased 5.2% YoY - Continued broad basing of revenues with higher share Revenue 21,536 22,575 4.8% coming from new initiatives like OTT / TV & Feature Animation - Reve
Slide 8: Finance Cost
Finance Cost FY17A INR mn FY18A FY17A Restated Interest 1,184 1,003 1,003 Fair Value Impact of Derivatives 312 177 177 Revaluation of Derivatives 441 Refinancing / Processing Fee one time 147 27 27 New Financing / Processing Fee amortization 153 72 72 Total Finance Costs [ex SC NCDs] 1,795 1,279 1,7
Slide 9: Creative Services EBITDA up 25% YoY
Creative Services EBITDA up 25% YoY, margin up by 330 bps Figures in Rs Million; Consolidated financials Revenue Adjusted EBITDA1 / Margin 4500 4.344 35% 18.170 4000 3.482 16.882 30% 3500 25% 3000 2500 23,9% 20% 7.6% 2000 20,6% 24.8% 15% YoY YoY 1500 10% 1000 5% 500 0 0% FY17 FY18 FY17 FY18 Adjusted
Slide 10: Tech/Tech Enabled Services sustains EBITDA margin above 25%
Tech/Tech Enabled Services sustains EBTIDA margin above 25% levels Figures in Rs Million; Consolidated financials Revenue Adjusted EBITDA1 / Margin 1200 31% 3.440 3.491 1000 898 926 30% 29% 800 28% 600 27% 26% 1.5% YoY 400 3.4% YoY 26,5% 26,1% 25% 200 24% 0 23% FY17 FY18 FY17 FY18 Order Book stand
Slide 11: Tech/Tech Enabled Services Operational Highlights
Tech/Tech Enabled Services Operational Highlights Quality of Revenue – FY 18 - Full Year Project 22% ROW Service 41% s 42% Product India 58% 59% Annuity 78% By Geography By Contract type By Product Mix Launched CLEARTM Digital Lab, Content Acquisition Portal, OTT distribution solution, Supply Chai
Slide 12: India FMS' EBITDA up 27% YoY
India FMS’ EBITDA up 27% YoY, margin improves by 790 bps Figures in Rs Million; Consolidated financials Revenue Adjusted EBITDA1 / Margin 1.699 1.712 700 662 42% 37% 600 523 38,7% 32% 500 27% 400 30,8% 22% 300 17% 0.7% YoY 200 27% YoY 12% 7% 100 2% 0 -3% FY17 FY18 FY17 FY18 Adjusted EBITDA Margin
Slide 13: Debt profile
Debt profile Consolidated Net Debt of Rs.15.4 bn as on 31st March, 2018 Right sizing the Balance Sheet; continued efforts towards reduction in Interest cost with more Dollar based loans – Dollar linked debt now 60% of the total Debt across the group Net Debt to Adj. EBITDA ratio at 2.8x – effo
Slide 14: Q4FY18 Performance
Q4FY18 Performance
Slide 15: Steady quarter – ends with robust Order Book
Steady quarter – ends with robust Order Book Figures in Rs Million; Consolidated financials Consolidated Income Adjusted EBITDA1 / Margin 6.589 2500 30% 5.894 2000 1.842 25% 1500 27,9% 1.242 20% 21,1% 1000 15% 500 10% 0 5% Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Adjusted EBITDA Margin 1 Adjusted for Non-Cas
Slide 16: Q4 FY18: Business wise Analysis
Q4 FY18: Business wise Analysis Division-wise revenues 5.402 Q4 FY17 Q4 FY18 4.873 865 924 427 380 Creative Services Tech / Tech Enabled Services India FMS Division-wise Operating EBITDA Division-wise Operating EBITDA Margins Creative Services Tech / Tech Enabled Services India FMS 35% Q4 FY17 Q4 FY
Slide 17: Business Highlights
Business Highlights
Slide 18: Winning highest global awards in Creative Services
Winning highest global awards in Creative Services Visual Effects OSCAR Awards BAFTA Awards Society (VES) Awards DNEG was awarded Oscar for best DNEG was , honoured DNEG was honoured with the VFX at Academy Awards 2018 for its with VES Awards for BAFTA for ‘Best Special Visual work on Blade Ru
Slide 19: Delivered top Hollywood blockbusters
Delivered top Hollywood blockbusters for the quarter and the year Worked on highest grosser for 2018 CY1 Delivered 4 out of Top 10 Movies in 2017 CY $1.26 $822 $1.345 bn mn bn Beauty and the Beast Wonder Woman $854 $658 2nd largest opening of all-time mn mn Only second movie to Remain #1 at week
Slide 20: Upcoming Hollywood Releases for FY19
Upcoming Hollywood Releases for FY19 27 Apr 2018 16 Nov 2018 14 Sep 2018 05 Oct 2018 27 Jul 2018 Avengers Infinity Mission: Impossible - Alpha Venom Fantastic Beasts: The War Fallout Crimes of Grindelwald 18 May 2018 21 Dec 2018 10 Aug 2018 2 Aug 2019 19 Oct 2018 Deadpool 2 The Meg The New Mutants A
Slide 21: Working on Top Bollywood Projects
Working on Top Bollywood Projects Delivered highest grossers of 2018 CY1 Upcoming Releases for FY19 Rs 3bn Rs 2bn Delivered Top Box Office Hits of 2017 Rs 1bn Rs 1bn 1 For All releases till 31st March, 2018 2121 Investor Update Q4 FY18
Slide 22: Delivering top Indian TV Commercials
Delivering top Indian TV Commercials TV Commercials for the quarter 4 ABBY Awards during FY18 Flipkart Honda GOLD SILVER Swiggy MTV Beats Vivo Kaveri https://www.youtube.com/watch?v= https://www.youtube.com/watch?v= KAvtWcj1kuM LA0YXaZ2o8o IPL Anthem Nokia BRONZE BRONZE ISL- ATK Perfect Short FIlm h
Slide 23: About Prime Focus
About Prime Focus
Slide 24: 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 3.30bn through Warrants at PFL at Rs.106 per share. The proceeds are largely expected to be used to pay off Debt; Proforma holding
Slide 25: Strong Leadership in all 3 verticals
Strong Leadership in all 3 verticals Tier-1 Visual Effects Creative Player & 30% Market Services 4 Oscars Share in 3D Conversion (78%) • Visual Effects, including 3D Conversion and Animation Leader in cloud solutions for Media &Entertainment Tech/Tech industry Enabled (15%) • CLEARTM Media ERP Suite
Slide 26: Creative Services: World's No. 1 independent Tier 1 player
Creative Services: World’s No. 1 independent Tier 1 player Strong Leadership Proven Expertise 4 Oscar wins for Tier-1 Visual Effects Player House of choice for Inception, Interstellar, visually enhanced Ex Machina & Blade services Runner 2049 Top Grossers Unprecedented scale 78% US$282 mn 6,000+ con
Slide 27: 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 Strong revenue model with Robust order book of $230 Robust growth in revenue, hybrid cloud enabled Media 78% Annuity contribution & mn+ to be executed over up 10.5x at Rs. 3.5 bn in ERP platform –
Slide 28: 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 29: 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 30: '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 31: Robust financial performance ...
Robust financial performance ... All absolute figures in Rs. million Strong Revenue Growth Strong Growth in EBITDA Margins Operating profit** Revenue 25% CAGR EBITDA EBITDA Margin 24% CAGR Operating Profit 14% CAGR 25.000 - 12mth numbers 22.919 4.000 3.721 21.781 6.000 5.435 25% 3.480 1,901 5.014 3.
Slide 32: .. And significant improvement in Leverage
.. And significant improvement in Leverage Net Debt / EBITDA 5,7x Net Debt – Rs 15.4 bn 4,3x 4,4x 3,8x 2,4x 2,8x FY13 FY14* FY15 FY16** FY17 FY18 Interest Cost <10% on the back of higher share of Foreign currency loans As on 30th March, 2013 As on 31th March, 2018 Proportion of $ linked debt Oversea
Slide 33: Annexure
Annexure
Slide 34: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Million) Q4FY18 Q4FY17 Q3FY18 FY18 FY17 Variance Variance Variance Net sales / income from operations 5,871 6,537 -10% 6,096 -4% 22,575 21,536 5% Total Expenditure 4,873 4,748 3% 4,823 1% 18,063 16,766 8% Personnel Cost (includin
Slide 35: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Million) Q4FY18 Q4FY17 Q3FY18 FY18 FY17 Variance Variance Variance Net sales / income from operations 354 343 3% 355 0% 1,453 1,545 -6% Total Expenditure 299 272 10% 259 15% 1,084 1,022 6% Personnel Cost (including technician fees)
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Standalone Consolidated Particulars 31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17 Assets Non-Current Assets Property, Plant and Equipment 3,905 3,885 7,669 7,298 Capital Work In Progress 15 9 63 27 Goodwill - - 9,731 9,719 Other Intangible assets 24 31 5,241 5,457 Intangible Ass
Slide 37: Consolidated Balance Sheet
Consolidated Balance Sheet Standalone Consolidated Particulars 31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17 Equity and Liabilities . Equity Equity Share Capital 299 299 299 299 Share warrant money received 825 - 825 - Other Equity 10,046 10,668 4,632 5,101 Equity attributable to equity holders of the par
Slide 38: PFL Shareholding Pattern
PFL Shareholding Pattern As on 31st March- 2018 Outstanding shares – 299 mn Others Public; 7,95% SCPE; 22,00% Promoters; 34,97% RMW Financial Services ; 35,08% Investor Update Q4 FY18 3838
Slide 39: 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 Reserve
Slide 40: 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 and 7 time zones. We provide end-to-end creative services (visual effects, stereo 3D conversion and animation),