Prime Focus Limited · NSE:PFOCUS

Prime Focus — Investor Presentation (May 2014)

50 slides from Prime Focus's investor presentation, May 2014

1. Slide 1: Prime Focus Limited Corporate Presentation May 2014

   PRIME FOCUS LIMITED Corporate Presentation May 2014

2. 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 ma

3. Slide 3: Contents

   Contents Company Overview  Business Overview 05  Clients and Projects 06-09  Key Milestones 10  Truly Global Indian Company 11  Worldsourcing® 12  Segments Overview 13-19  Awards and Accolades 20 Industry Opportunity 21-26 Financial Performance 27-34 Outlook & Strategy 35-39 Shareholding and

4. Slide 4: Company Overview

   Company Overview

5. Slide 5: Leading Indian 'Media & Technology' MNC

   Leading Indian ‘Media & Technology’ MNC  Only integrated player offering full bouquet of creative and technology-based services  World leader in creative services (3D conversion, VFX and post production) ViewD+VFX (Revenue - 60%*) • ~30% global market share in 3D conversion • Established leadershi

6. Slide 6: With marquee clientele across the globe

   With marquee clientele across the globe Creative services Technology services Leading Hollywood and Bollywood Leading broadcasters, studios, brands, sports studios and digital businesses DAX clients 6 PFL Corporate Presentation – May 2014

7. Slide 7: Partnering award winning Hollywood studios for top grossers

   Partnering award winning Hollywood studios for top grossers Gravity World War Z Avatar Exclusive 3D Exclusive 3D VFX; Additional 3D Conversion Partner Conversion Conversion Over $600mn box Partner Highest all time office collections; 12 Over $500mn box grossing movie; won Academy Award office collec

8. Slide 8: Contributed to multiple Bollywood blockbusters & successful ad campaigns

   ….& contributed to multiple Bollywood blockbusters & successful ad campaigns Worked on 100+ Bollywood movies in last 5 years Dhoom 3 Dabangg 2 DI VFX First Indian film to Grossed over cross Rs 5bn box Rs 1bn office collections My name is Khan Ra One DI 3D Conversion; DI Grossed over Converted over R

9. Slide 9: Preferred technical services provider to biggest broadcasters

   …as well as preferred technical services provider to biggest broadcasters  Leading media and entertainment company in India with portfolio of over 30 channels • Tape to tape less migration • Established a digital media supply chain • Digitized enterprise processes & workflows • Empowered concurrent

10. Slide 10: Transformation from domestic niche player to global diversified MNC

    Marking successful transformation from domestic niche player to global diversified MNC...  Investment by  Animation AID Partner in launched Prime Focus  Investment World  First to by SCPE  JV to enter convert an  FCCB China market entire film - 2014 Clash of the successful Titans - to redempti

11. Slide 11: Over 80% overseas revenues & well established global operations

    ….with over 80% overseas revenues & well established global operations Exports driving revenues Working with top Global clients  High proportion of revenue contribution  Working with the top studios in from overseas – over 80% Hollywood - Warner Bros, 21st Century  Expanding geographical footprin

12. Slide 12: Effective, profitable model spanning geographies

    Effective, profitable model spanning geographies  Tax incentives London  Strong domestic TV and  2D-3D & VFX commercials market  Tax incentives  17,000 sq ft  Language and  125 artists, 100 freelance Vancouver cultural  Post Production –  VFX & 2D-3D similarities Broadcast & Advertising  2

13. Slide 13: Offering a full bouquet of Creative and Technical services

    Offering a full bouquet of Creative and Technical services Prime Focus Creative Services Technology Services Prime Focus World & Prime Focus India Prime Focus Technologies CLEAR – Media ERP; DAX – Digital 3D Conversion Dailies ® VFX Content Operation Services Animation Preparation & Localization Mon

14. Slide 14: Prime Focus World – leading international creative services provider

    Prime Focus World – leading international creative services provider Contributing to 60% of revenues in 12M FY14; 26% revenue CAGR (FY11-12MFY14*)  Complete creative services provider • Global leader in 3D conversion market, market share of 30% • Ability to bundle VFX alongside 3D conversion (View-

15. Slide 15: Prime Focus Technologies – leader in Media ERP solution

    Prime Focus Technologies – leader in Media ERP solution Contributing to 19% of revenues in FY14; 14x revenue in 12MFY14* over FY11  Owns and operates the world’s one and only FY12 FY13 hybrid cloud enabled Media ERP platform – Content under CLEAR management – Video 150,000 350,000 • CLEAR is extrem

16. Slide 16: A robust non linear, scalable business model

    And a robust non linear, scalable business model Sustained growth with +30% margins Revenue distribution (12M FY14) Revenue EBITDA Margin INR mn 2000 37% 40% 1800 32% 35% 1600 29% 29% RoW, 1,600 30% 24% 1400 Project 1200 25% based, 29% 1000 20% 800 15% 600 809 Annuity, 10% 71% India, 400 200 5% 76%

17. Slide 17: PFT - Strategic expansion in North America with acquisition of DAX

    PFT - Strategic expansion in North America with acquisition of DAX Company Overview • DAX is the provider of production workflow and media asset management applications and services to the entertainment industry • Designed to maximize efficiencies throughout the content creation lifecycle A Primetim

18. Slide 18: Clients across the content lifecycle

    Clients across the content lifecycle TV Broadcast DAX Acquisition Feature Films/Content Owners Content Content Content Content Creation Transformation Distribution Exhibition Advertising Service Providers 18 PFL Corporate Presentation – May 2014

19. Slide 19: Domestic Business – a leading Bollywood post production services

    Domestic Business – a leading Bollywood post production services  Post production is the traditional business of the company Post Production  Touch almost every major production in some including DI form or the other • Leading player in Bollywood in this segment. • Dominant post production player

20. Slide 20: Increasing global recognition

    Increasing global recognition Recent awards and accolades International 3D Society Award for Gravity in ‘Outstanding 2D to 3D Conversion in Theatrical Motion Picture’ category (Jan 2014) Best VFX for ‘White House Down’ at 24 FPS Annual International Animation Awards 2013 (Dec 2013) Prime Focus Techn

21. Slide 21: Industry Opportunity

    Industry Opportunity

22. Slide 22: Media services on a high growth trajectory

    Media services on an high growth trajectory; De-risked to recessionary pressures with services models 3D revives cinemas – Recent hit Gravity’s 58.7% BO collections of 80% collections The Great Gatsby were from 3D screens from overseas Growing consumption Content monetization platforms across geogra

23. Slide 23: Expanding E&M industry globally

    Expanding E&M industry globally…. Global E&M spend Global box office ($bn) 2.5 110 40 2.2 35.9 105 34.7 35 32.6 2 106 31.6 1.6 29.4 100 30 10.8 10.9 1.5 10.6 10.2 95 25 10.6 1 90 20 88.6 85 15 0.5 22.4 23.9 25.0 80 10 18.8 21.0 0 75 5 2012 2017e 0 Global E&M Spend ($tn) 2009 2010 2011 2012 2013 Glob

24. Slide 24: Growing opportunities in key segments

    …with growing opportunities in key segments Growing VFX revenues ($mn) US 3D box office ($bn) 2.5 2.50 2.2 2.10 1.96 2 2.00 1.77 1.8 1.8 1.8 1.61 1.50 1.33 1.35 1.5 1.1 1.00 1 0.50 0.5 0.2 0.00 0 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Source: Frank N. Magid Associates, Inc. Sour

25. Slide 25: Indian E&M industry on higher growth trajectory

    Indian E&M industry on higher growth trajectory Figures in Rs Billion E&M revenues set to double by 2017.. .. With 1.8x growth film revenue 2000 250 1,786 219.8 1600 200 1200 150 918 125.3 820 112.4 800 728 89.3 92.9 587 652 100 83.3 400 50 0 0 2009 2010 2011 2012 2013 2018e 2009 2010 2011 2012 2013

26. Slide 26: Digital content solutions a large market opportunity

    Digital content solutions  a large market opportunity Figures in $ Billion Total Addressable market is expected to North America, the largest market while Asia grow at CAGR of 5% and Latin America, fastest growing markets 14.0 Latin TAM 12.9 America, 13.0 8% 12.3 North 12.0 11.7 America, 11.1 Asia

27. Slide 27: Financial Performance

    Financial Performance

28. Slide 28: 12M FY14: Robust growth in annual revenues

    12M’ FY14: Robust growth in annual revenues…. Figures in Rs Million, consolidated financials Growing revenues Successful scale up No. of employees Avg Revenue per employee 9,000 8,349 5,000 1.8 1.9 2.0 7,719 1.8 7,622 8,000 7,000 4,000 1.4 1.5 6,000 5,030 5,000 3,000 4,000 1.0 4,300 ~4,500 2,000 4,2

29. Slide 29: Operating margins maintained in double-digits

    Operating margins maintained in double-digits EBITDA & EBITDA margin PAT & PAT margin PAT Margin EBITDA Margin 2,500 40% 20% 33% 900 2,000 29% 15% 30% 700 15% 23% 13% 22% 1,500 20% 500 2,214 10% 1,000 1,753 1,840 300 1,671 10% 500 4% 100 5% 761 993 330 - 0% (203) (100) FY11 FY12 FY13 12M FY14 0% (30

30. Slide 30: 12M FY14: Growth driven by new businesses

    12M’ FY14*: Growth driven by new businesses Figures in Rs Million; Consolidated financials Net Revenues EBITDA (w & w/o FX) PBT PAT 8,349 2,132 / 1,840 563 330 12M*FY14 10% 17%; 5% FY13 7,622 1,820 / 1,753 (567) (203)  Net revenues up 10% YoY at Rs 8,349mn in 12M FY14 driven by 98% YoY growth in Pr

31. Slide 31: Revenue share of new businesses up from 69% to 79%

    Revenue share of new businesses up from 69% to 79%  Share of value added new businesses (PFT and ViewD+VFX) increase from 69% in FY13 to 79% in 12M FY14 FY13 12M'FY14 PP 21% PP 31% ViewD+VFX PFT ViewD+VFX 59% 19% 60% PFT 11% View D is 2D to 3D Conversion PP includes post production, DI and equipmen

32. Slide 32: EBITDA share of new businesses up from 61% to 79%

    EBITDA share of new businesses up from 61% to 79%  Share of value added new businesses (PFT and ViewD+VFX) in EBITDA increase from 61% in FY13 to 79% in 12M FY14  Including the Backend, View D+VFX EBITDA margins are higher by ~6-7% FY13 12M'FY14 PP 21% PP 39% ViewD+V FX ViewD+VF 48% X 52% PFT 27%

33. Slide 33: Segmental Analysis 12MFY14

    Segmental Analysis 12MFY14: Robust growth in new businesses Figures in Rs Million; Consolidated financials Segment-wise revenues FY13 12M'FY14 11% 4,995 4,483 -25% 98% 2,330 1,600 1,753 809 ViewD+VFX PFT PP Segment-wise EBITDA Segment-wise EBITDA Margins ViewD+VFX PFT PP FY13 12M'FY14 31.7% 950 29.5

34. Slide 34: Outlook & Strategy

    Outlook & Strategy

35. Slide 35: Strategic plan for next phase of growth

    Strategic plan for next phase of growth Strategic Direction Present Future  Global leader in stereo 3D  Leverage on the robust conversion (30% share) Worldsourcing® model  Partnered marquee VFX  Maintain robust market-share  Become one of top 5 global projects globally in 3D providers of M&E in

36. Slide 36: Geographical expansion

    Proactively investing in strategic initiatives for future growth New Entry into global entertainment hubs PFT  US entry in FY08; FY13 revenues of  Invested in Clear in FY09 Rs 2.2bn; 28% 4-yr CAGR  Invested in True North facility in Geographical expansion  UK entry in FY07; FY13 revenues of FY13

37. Slide 37: PFW - Ongoing announced projects - Hollywood

    PFW - Ongoing announced projects - Hollywood Sin City: A Dame to Kill For (2500+ Into the storm Transformers: Age shots, VFX & 3D Warner Brothers of extinction Conversion, (VFX) (3D Conversion) Exclusive Partner) Seventh Son (1700+ shots, 3D Maleficent Conversion, (3D Conversion) The Gunman (VFX, Ex

38. Slide 38: Upcoming projects and new wins - India

    Upcoming projects and new wins - India Kochadaiyaan Heropanti (DI) (VFX, DI) Humshakals Bang Bang (VFX,DI, Camera) (VFX, DI) The Villian Phantom (VFX, DI) (VFX, DI) 38 PFL Corporate Presentation – May 2014

39. Slide 39: Shareholding and BOD

    Shareholding and BOD

40. Slide 40: Shareholding pattern

    Shareholding pattern As on 31st March 2014 Outstanding shares – 18.5 mn Public & Major Non-Promoter % Others 21.2% Shareholders shareholding Standard Chartered PE 19.7% Promoters Rakesh Jhunjhunwala 6.1% 41.6% Top Class Capital Markets Pvt Ltd 4.5% Corporate ICICI Prudential Dynamic Plan 3.8% Bodies

41. Slide 41: With marquee long term PE investors

    With marquee long term PE investors November 2012  Standard Chartered Private Equity subscribed to 36,549,990 equity shares of PFL on a preferential basis for an aggregate amount of $35mn  The company also issued INR-denominated Non-Convertible Debentures (NCDs) on a private placement basis, equiv

42. Slide 42: Corporate Structure

    Corporate Structure Prime Focus Ltd (India) 65% 76% 100%* Prime Focus London Prime Focus PF World NV PLC Technologies (Netherlands) (UK regd) (India)  Operations in the UK  Operations in India, the  Operations in India, the UK and North America UK and North America  Provides post production (NA)

43. Slide 43: Board of Directors

    Board of Directors A veteran in the Indian Film & Television industry, he commenced his career as an Mr. Naresh Malhotra Associate Director and Controller of Production before venturing into producing films. He Chairman and set up India’s first digital audio studio and then, ventured into the busine

44. Slide 44: Key Management

    Key Management As the global leader of Prime Focus, Mr. Malhotra is responsible for all decision-making with respect to business, people and technology. Born into a family of three generations Mr. Namit Malhotra of working Bollywood professionals, Mr. Malhotra has been immersed in the movie Founder,

45. Slide 45: Annexure

    Annexure

46. Slide 46: Historical financials – Profit and Loss

    Historical financials – Profit and Loss Figures in Rs Million, consolidated financials Particulars FY'11 FY'12 FY'13 12M’FY14* Revenues 5,030 7,719 7,622 8,349 Payments to and provision for employees 1,105 1,692 3,084 3,483 Technician fees 942 1,936 766 616 SG&A, Other expenses 1,311 1,877 2,019 2,4

47. Slide 47: Segmental break-up of revenue

    Segmental break-up of revenue Figures in Rs Million, consolidated financials Business segments FY'11 FY'12 FY'13 12M’FY14* PFT 110 336 809 1,600 PFW (3D+VFX) 2,484 4,624 4,483 4,995 Post Production 2,436 2,760 2,330 1,753 Total revenues 5,030 7,719 7,622 8,349 % share in total revenues FY'11 FY'12 F

48. Slide 48: Balance Sheet

    Balance Sheet Figures in Rs Million, consolidated financials Particulars FY'11 FY'12 FY'13 12M’FY14* Shareholder's Equity 3,645 4,967 5,544 7,474 Total Debt 4,138 2,732 6,301 7,244 Minority Interest 416 451 641 1,618 Other Long Term Liabilities - 43 177 184 Provisions 3 8 14 17 Trade Payables 573 1,

49. Slide 49: About Us

    About Us Prime Focus Limited, a global leader in media and entertainment industry services employs ~4,500 professionals in 14 cities across 4 continents and 5 time zones. We provide end-to-end creative and technical services including visual effects, stereo 3D conversion, video/audio post-production

50. Slide 50: About Prime Focus Limited

    About Prime Focus Limited Prime Focus Limited, a global leader in media and entertainment industry services employs over 4,300 professionals in 14 cities across 4 continents and 5 time zones. We provide end-to-end creative and technical services including visual effects, stereo 3D conversion, video/

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