Pvr Inox Limited · NSE:PVRINOX
Pvr Inox — Kotak Annual India Conference – Chasing Growth 2023
31 slides from Pvr Inox's conference presentation, Feb 22, 2023
Slide 1: Regulation 30 compliance letter to NSE and BSE
February 22, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Corporate Relationship Department Plot No. C/1, G Block, 1st Floor, New Trading Ring, Bandra Kurla Complex, PJ Towers, Dalal Street, Bandra (East), Mumbai - 400 051 Fort, Mumbai - 400 001 Fax: 022-26598
Slide 2: A 'Mega Blockbuster' in the Making
A ‘MEGA BLOCKBUSTER ’ IN THE MAKING F E B R U A R Y 2 2 ND, 2 0 2 3
Slide 3: Industry Overview, The Merger, Q&A
INDUSTRY THE MERGER Q&A OVERVIEW 2
Slide 4: Industry Overview
I N D U S T R Y O V E R V I E W 3
Slide 5: Cinemas remain the no. 1 out-of-home entertainment option in India
CINEMAS HAVE BEEN IN EXISTENCE FOR OVER 100 YEARS CINEMAS REMAIN AS THE NO. 1 OUT OF HOME ENTERTAINMENT OPTION IN INDIA INDIAN CINEMA HAS THE HIGHEST NUMBER OF MOVIE RELEASES AND AMONGST THE HIGHEST ADMISSIONS 4
Slide 6: Myth vs Reality
MYTH VS REALITY 5
Slide 7: Myth: Cinema is dead; Reality: 2022 equal to pre-COVID levels
M Y T H V S R E A L I T Y INDIA BOX OFFICE* COLLECTION CROSSED RS 10,000 CR MARK IN CINEMA 2022 – EQUAL TO PRE-COVID LEVELS (2019) IS DEAD HIGHEST GROSSING MOVIES ACROSS ALL MAJOR LANGUAGES KGF 2 : 970 Cr RRR : 869 Cr AVATAR 2 : 471 Cr PATHAAN : 616 Cr (Kannada + Dubbed) (Telugu + Dubbed) (English +
Slide 8: Myth vs Reality: Cinema is for 'big event' films
M Y T H V S R E A L I T Y KANTARA – CROSSED RS 360 CRORE CINEMA IS FOR KASHMIR FILES – CROSSED RS 290 CRORE ‘BIG EVENT’ FILMS DRISHYAM 2 – CROSSED RS 285 CRS BHOOL BHULAIYAA 2 – CROSSED RS 215 CRORE PATHAAN – HIGHEST GROSSING BOLLYWOOD FILM OF ALL BOLLYWOOD TIMES (INDIA GROSS COLLECTION OF RS 616 CR
Slide 9: Myth vs Reality: Streaming platforms will rule
M Y T H V S R E A L I T Y STREAMING HOLLYWOOD’S HOTTEST NEW TREND - MOVIES WILL RELEASE IN THEATERS FIRST PLATFORMS THEATRICAL WINDOW IS BACK TO 8 WEEKS IN INDIA WILL RULE “SMILE” “GLASS ONION : A KNIVES HULU-INTENDED “HOUSE PARTY”, SHIFTED RELEASE “BARBARIAN” OUT MYSTERY” “THE BOOGEYMAN” “EVIL DEAD
Slide 10: Myth vs Reality: Indians spending less on cinema
M Y T H V S R E A L I T Y INDIANS ARE IMAX PER-SCREEN AVERAGE REVENUE IN INDIA SPENDING LESS ON WAS $900,000 FOR 2022 - ALMOST THE SAME AS IN THE USA CINEMA “INDIA IS ONE OF IMAX'S MOST SUCCESSFUL MARKETS” - I M A X C E O R I C H A R D G E L F O N D SOURCE : FORBES INDIA 9
Slide 11: Cinemas and OTT always co-exist rather than compete
CINEMAS AND OTT ALWAYS CO-EXIST RATHER THAN COMPETE GREATER BENEFITTING THEATRICAL BETTER AUDIENCE ALL RELEASE MONETIZATION INTEREST STAKEHOLDERS PROVIDES A GENERATES HIGHER YIELDS DRIVES GREATER WIDER REACH STRONGER WORD OF ACROSS ALL VALUE FOR MOUTH PLATFORMS PRODUCERS, EXHIBITORS, OTT PLATFORMS A
Slide 12: Success of Pathaan to catapult new releases
SUCCESS OF PATHAAN TO CATAPULT NEW RELEASES MORE FILMS OF EQUAL SCALE & EXPERIENCE LINED UP HINDI KISI KA BHAI JAWAN TIGER 3 DUNKI BHOLAA SOURCE : YRF STUDIOS (19.02.23) KISI KI JAAN ENGLISH REGIONAL MI : DEAD FAST & FURIOUS X OPPENHEIMER DUNE 2 PUSHPA 2 SALAAR PS 2 RECKONING PART I 11 (Telugu) (Tel
Slide 13: Industry voices: Rajamouli and James Cameron
“I DREAM OF A DAY WHEN WE HAVE “WE’RE GOING BACK TO ONE BIG FILM INDUSTRY: THE THEATERS AROUND THE INDIAN FILM INDUSTRY.” - S.S. RAJAMOULI WORLD.” - JAMES CAMERON
Slide 14: The Merger
T H E M E R G E R
Slide 15: Never let a good crisis go to waste
NEVER LET A GOOD CRISIS GO TO WASTE - W I N S T O N C H U R C H I L L 14
Slide 16: Coming together of two leading cinema brands
COMING TOGETHER OF TWO LEADING CINEMA BRANDS MULTIPLEX LEADER 1,642 SCREENS #1 MULTIPLEX PLAYER #2 MULTIPLEX PLAYER 18.1 CR ANNUAL ADMISSIONS* 912 SCREENS PAN INDIA #1 MARKET SHARE IN ALL 730 SCREENS PAN INDIA KEY REGIONS 183 PROPERTIES 171 PROPERTIES BROADER REACH 78 CITIES 113 CITIES 74 CITIES 354
Slide 17: Rebuilding ourselves as a stronger entity
REBUILDING OURSELVES AS A STRONGER ENTITY ST RENGT HEN LEADERSHIP POSIT ION PAN INDIA LEVERAGE SCALE T O DRIVE OPERAT ION AL EFFICIENCY ST RONG BALANCE SHEET T O SUPPORT ACCELERAT ED GROWT H SIGNIFICANT SYNERGY BENEFIT S AND LONG T ERM VALUE CREAT ION FOR ALL ST AKEHOLDERS 16
Slide 18: Diversified screen network across 113 cities
DIVERSIFIED SCREEN NETWORK ACROSS 113 CITIES PUNJAB JAMMU & KASHMIR MAKING THE BRAND 15 cinemas | 76 screens 2 cinemas | 5 screens ‘ASPIRATIONAL’ & ‘ACCESSIBLE’ CHANDIGARH UTTARAKHAND 3 cinemas | 15 screens 1 cinema | 5 screens HARYANA UTTAR PRADESH 23 cinemas | 88 screens 31 cinemas | 147 screens D
Slide 19: Industry leading market position
INDUSTRY LEADING MARKET POSITION 58% 18% PVR 30% SINGLE SCREENS SCREEN 18% + 30% BO 70% SHARE INOX SHARE 24% O TH E R MU L TI P L E X S C R E E N S SIGNIFIC AN T CONTRIBU TION TO THE INDIA BOX OFFIC E C OLLEC TI ON S SOURCE : COMPANY ESTIMATES, ORMAX MEDIA 2022 18
Slide 20: Among the top listed global multiplex operators
COMPANY AMONGST THE TOP LISTED GLOBAL MULTIPLEX OPERATORS SCREEN COUNT* HIGHEST ADMISSIONS / SCREEN (CY’19) AMC 10,500 PVR + INOX 1,26,503 Cineworld 9,139 Major Cinemas 49,325 Cinemark 5,835 Cinemark 45,597 CJ CGV 4,207 Cineplex Canada 39,220 PVR + INOX 1,642 Kinepolis 37,349 Cineplex Canada 1,637 A
Slide 21: Strategy going forward
STRATEGY GOING FORWARD HR INTEGRATION IMMEDIATE TECHNOLOGY INTEGRATION : INTEGRATION OF IT & INTEGRATION ERP SYSTEMS & PROCESSES FOCUS OPERATIONS INTEGRATION : SUPPLY CHAIN & PROCESSES BO X O FFICE A REVENUE SYNERGIES FO O D AND BEVER AG E B ADVE RT ISEM ENT C MERGER MEDIUM TO SYNERGIES LONG TERM EC
Slide 22: Box office synergies: drive long term occupancy improvement
A BOX OFFICE SYNERGIES: DRIVE LONG TERM OCCUPANCY IMPROVEMENT OPTIMIZE IMPROVED INCREASING PROGRAMMING CUSTOMER OPTIONS FOR STRATEGY ENGAGEMENT CONSUMERS EFFICIENT FILM FESTIVALS LOYALTY PROGRAM SCHEDULING STREAMLINING CONCERTS STAGGERED LEVERAGE TECHNOLOGY SHOWCASING SPORTING EVENTS FOR TARGETED E-
Slide 23: Food & beverage: huge headroom for growth
B FOOD & BEVERAGE: HUGE HEADROOM FOR GROWTH F&B SCALE AMONGST THE LEADING SPH TO ATP : SIGNIFICANT POTENTIAL QSR BRANDS IN INDIA FOR GROWTH 5,002 76% 72% Intl. Avg. : ~70% 65% 61% 2,617 2,177 1,883 1,525 51% 1,343 Jubilant Devyani Westlife Sapphire PVR + Restaurant PVR + INOX AMC - US Cinemark - Cin
Slide 24: Food & beverage synergies
B FOOD & BEVERAGE SYNERGIES PLUG U P GR AD E P R OD U C T OF F E R I N GS PRODUCT E X P AN D & S T AN D AR D I Z E M E N U GAPS I N T R O D U C T I O N O F N O N V E G E T AR I A N M E N U AD OP T ‘ B E S T P R AC T I C E S ’ OF B OT H C I R C U I T S OPTIMIZE S T R E AM L I N I N G K I T C H E N O
Slide 25: Advertising: leveraging scale across 180 mn eyeballs
C ADVERTISING : LEVERAGING SCALE ACROSS 180 MN EYEBALLS VALUE MORE ADVERTISING TIME & VOLUME OPTIMIZE REALIZATION GROWTH DIVERSIFY FOCUS ON OFFSCREEN ADVERTISING, EVENTS & AD SPONSORHIPS FORMATS ENHANCED DEPLOY & USE TECHNOLOGY TO AID SALES STRONGER CONSUMER INSIGHTS FOR BRANDS ANALYTICS 24
Slide 26: Cost synergies: leverage economies of scale
D COST SYNERGIES: LEVERAGE ECONOMIES OF SCALE 01 INTEGRATE SUPPLY CHAIN 02 LEVERAGE SCALE FOR VOLUME DISCOUNT OPEX & STANDARDIZATION OF PRODUCT / 03 CAPEX PACKAGING SPECIFICATIONS 04 REMOVE DUPLICATE COSTS 25
Slide 27: Synergies will lead to significant margin expansion
SYNERGIES WILL LEAD TO SIGNIFICANT MARGIN EXPANSION SYNERGY BENEFIT AREAS EBITDA IMPACT 1. BOX OFFICE INR 225 CRS REVENUE 2. FOOD & BEVERAGE OF 3. ADVERTISEMENT ANNUAL SYNERGIES OVER 4. SUPPLY CHAIN SYNERGIES 12 - 24 COST MONTHS 5. OVERHEAD RATIONALIZATION 26
Slide 28: Clear visibility of adding 200 screens per annum over next 2 years
CLEAR VISIBILITY OF ADDING 200 SCREENS PER ANNUM OVER THE NEXT 2 YEARS 01 02 03 04 ACCELERATE GROW AT EXPAND IN TIER 2 & INCREASE GROWTH IN SUPERIOR TIER 3 CITIES PREMIUM GROWTH UNDERPENETRATED TERMS FORMATS SHARE SOUTH INDIAN MARKET >40% OPTIMIZE CAPEX NEW SCREEN & RENTALS ADDITIONS IN SOUTH 27
Slide 29: The show must go on - Thank you
THE SHOW MUST GO ON T H A N K Y O U
Slide 30: Safe Harbour
SAFE HARBOUR This presentation has been prepared for general information purposes in respect of PVR Limited (“Company”) together with its subsidiaries and joint venture (together, with the “Company”, the “Group”) only, without regard to any specific objectives, suitability, financial situations and
Slide 31: Safe Harbour
SAFE HARBOUR This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018,
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