Prime Focus Limited · NSE:PFOCUS

Prime Focus — Merger or Acquisition (July 2014)

27 slides from Prime Focus's merger presentation, July 2014

  1. Slide 1: Creating World's Largest Media Services Powerhouse

    @ Creating World's Largest Media Services Powerhouse (DNeg+PFW and PFL+RMW Mergers) July 2014 primefocusltd.com “Ys

  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: Double Negative and Reliance Media Works merge with Prime Focus

    Double Negative and Reliance Media Works merge with Prime Focus DOUBLE NEGATIVE Europe's largest and one of top 3 independent Global VFX players PRIME FOCUS Strong global & domestic VFX business; market leader in 3D Conversion; Pioneer and market leader in Media ERP technology and Cloud-enabled Serv

  4. Slide 4: Synergies to create multiplier effects in revenue and profitability

    Synergies to create multiplier effects in revenue and profitability Significant revenue enhancement opportunity and cost synergies to boost EBITDA margins to 20-25% in the near to medium term double negative visual effects Double Negative * Deep relationships with major studios ° Access to best tale

  5. Slide 5: CANADA  Tax incentives  Language and cultural

      UK CANADA  Tax incentives  Tax incentives  Strong domestic TV  Language and cultural and commercials CHINA similarities market  Low-cost labor  Government Vancouver London support Toronto PFW  Partnerships with DNeg Mumbai Hollywood studios PFL Burbank - Lowry Digital Chandigarh Goa Beiji

  6. Slide 6: 2D to 3D VFX Technology

    $     2D to 3D VFX   Post Technology Production, services Asset rentals

  7. Slide 7: Establishing leadership in every customer segment

    Establishing leadership in every customer segment Hollywood Bollywood = Largest Independent Tier 1 VFX Services provider in the world (DNeg/DD/PFW) o Secure bigger projects and ensure lower volatility - $25 mn+ ticket size from <$5 mn currently o More than 50% share of 2014 summer Hollywood releases

  8. Slide 8: Global E&M Spend and Filmed Entertainment Revenue

    40 2.5 2.2 110 35 105 2 106 30 10.8 10.9 1.6 100 10.2 25 10.6 1.5 95 10.6 20 1 90 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 ($tn) 2009 2010 2011 2012 2013 Global Filmed Entertainment Revenue ($bn) International US/Canada   

  9. Slide 9: The recent success of Gravity has given a big push to 3D format

    2.50 2.5 2.10 2.2 1.96 2.00 1.77 2 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 2008 2009 2010 2011 2012 2013 0 2008 2009 2010 2011 2012 2013 The recent success of Gravity has given a big push to the 3D format’s success. 80% of Gravity's opening weekend US box office sales came f

  10. Slide 10: Non-linear potential ahead for digital content/technology services

    Non-linear potential ahead for digital content/technology services Figures in $ BN Total Addressable market is expected to North America, the largest market while grow at CAGR of 5% Asia and Latin America, fastest growing markets 14.0 . 4 Latin— 3.0 America, po 8% Sr ° Pacific, 71.0 24% 10.0 2014 20

  11. Slide 11: 2000 1,786 219.8 1600 1200 125.3 112.4 800 587 89.3 92.9 100 83.3 400

    250 2000 1,786 219.8 1600 200 1200 918 820 150 125.3 652 728 112.4 800 587 89.3 92.9 100 83.3 400 0 50 2009 2010 2011 2012 2013 2018e 0 2009 2010 2011 2012 2013 2018e

  12. Slide 12: Double Negative

    Double Negative Enterprise Valuation of ~£50mn        

  13. Slide 13: PFL Shareholding pattern

    PFL Shareholding pattern Public & Public, Others Institutions 21.2% 24.0% Promoters 33.5% Promoters 41.6% Corporate Bodies 11.8% SCPE DII 12.2% 3.9% N FII/FVCI : 1.9% SCPE —— RMW 19.7% 30.2% Merger presentation - July 2014 primefocusltd.com

  14. Slide 14: Strengthened balance-sheet and 3x Market Value creation

    Strengthened balance-sheet 3x Market Value creation Rs mn Rs mn Debt 15,542 Equity 2,500 5,900 10,522 10,542 8,022 5,000 13,374 7,474

  15. Slide 15: PFW + DNeg Merger

     First 12 months 18-24 months 24-36 months  PFW + DNeg Merger       

  16. Slide 16: PFW + DNeg Merger

    PFW + DNeg Merger primefocusltd.com “a

  17. Slide 17: Double Negative, the force behind many a Hollywood blockbuster

    Double Negative, the force behind many a Hollywood blockbuster Inception Interstellar Harry Potter and the Deathly Hallows Terminator: Genesis Hercules EXxoDUS Badan Vs, Pc Lagorn Transcendence — Jupiter Ascending — Book of Exodus

  18. Slide 18: One of Top independent global VFX providers

    One of Top 3 independent global VFX providers One of the largest independent VFX providers to global film industry Academy® Award (for Inception) Two BAFTAs (for Inceptionand Harry Potter and the Deathly Hallows Part 2). Delivered 130+ film projects till date Stunning visual effects for blockbusters

  19. Slide 19:              

                                   

  20. Slide 20: In one move, DNeg-PFW enters Tier 1 of VFX industry

    In one move, DNeg-PFW enters Tier 1 of VFX industry Given the fragmented nature of the VFX industry and high entry barriers to the Tier 1 league which controls a major chunk of business, PFW's merger with DNeg is a smart move Revenue > ~$150 MN Top 5 involved in > 65% of Top 25 VFX-heavy films (2009

  21. Slide 21: PFL + RMW Merger

    PFL + RMW Merger primefocusltd.com “a

  22. Slide 22:              

                                     

  23. Slide 23: Sunrise to Sunset Global Digital Pipeline

    Sunrise to Sunset Global Digital Pipeline Alliance with Imagica (post- production co.) Locations in Burbank, NewYork, London, and Mumbai Strategic acquisitions Affiliate locations in Tokyo, Venice (LA), Vancouver, Hyderabad and Chennai Leader in India - BOLLYWOOD Marquee International clientele y “C

  24. Slide 24: Competitive edge with Academy Award winning Lowry Digital

    Competitive edge with Academy® Award winning Lowry Digital = Image Processing Services for Legacy content and New Releases * Joint operations in US and India ‘Lowry Process’, won the Scientific and Technical Achievement Academy® Award 2012 Key clients of RMW’'s restoration services RMW has handled d

  25. Slide 25: Capturing more than 50% of Film, Broadcast & Advertisement Spend in India

    Capturing more than 50% of Film, Broadcast & Advertisement Spend in India @ 360 degree offering with integrated suite of digital media services ie, |B Film Studios RMW & PFL o CLEAR Lor Digital Media ERP technology, Image Processing technology and Cloud-enabled Services primefocusltd.com RMW & PFL R

  26. Slide 26: Investor contacts

    About Us Prime Focus Limited (PFL), a global leader in media and entertainment industry services employs over 5500 professionals in 16 cities across 4 continents and 7 time zones. We provide end-to-end creative services like visual effects, stereo 3D conversion, animation, post-production, Digital I

  27. Slide 27: Thank you

    Thank you primefocusltd.com “a

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