Slide 1: Cover letter to stock exchanges
BANGALORE BEIJING CAPE TOWN CHANDIGARH DELHI GOA HYDERABAD JOHANNESBURG KOLKATA LONDON LOS ANGELES MUMBAI NEW YORK SINGAPORE TORONTO VANCOUVER November 17, 2020 To, To, The National Stock Exchange of India Limited BSE Limited Listing Department, Listing Department, Exchange Plaza, Bandra Kurla Compl
Slide 2: Investor Presentation November 2020
Investor Presentation November 2020
Slide 3: 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 4: Contents
Contents 1 H1 FY21 Performance … 4-12 2 About Prime Focus … 13-23 3 Annexures … 24-27
Slide 5: H1 FY21 Performance
H1 FY21 Performance
Slide 6: H1FY21 highlights - Resilient performance despite COVID19 disruptions
H1FY21 highlights - Resilient performance despite COVID19 disruptions Consolidated Change YoY Income DNEG nominated for a Royal Television Society Award in the -7.5% Effects Category for its work on Rs. 1,265 Cr YoY BBC’s ‘World on Fire’ 3% India, FMS DNEG’s work on ‘Devs’ nominated Divisional 10% f
Slide 7: H1FY21 – Cost Optimization led to PAT positive
H1FY21 – Cost Optimization led to PAT positive 6M FY21 Revenue Adjusted EBITDA1 1,368 1,265 400 29.2% 35.0% -7.5% 350 50.0% 30.0% YoY 300 YoY 370 25.0% 250 18.0% 20.0% 200 150 246 15.0% 10.0% 100 50 5.0% - 0.0% H1FY20 H1FY21 H1FY20 H1FY21 Figures in Rs Crore; Consolidated financials Adjusted EBITDA
Slide 8: Creative Services shows resilience; higher EBITDA despite lower revenue
Creative Services shows resilience; higher EBITDA despite lower revenue Stable Revenues despite COVID Headwinds Revenues1 ▪ Strong execution pipeline of projects in Film VFX, TV/OTT and Animation backed by 1,146 credible studios led to limited COVID disruption on the revenue front. With shoots -2.3%
Slide 9: Working on top Hollywood projects
Working on top Hollywood projects Upcoming Movie Projects Upcoming TV / OTT Projects Apr-21 Oct-21 Dune F9: The Fast Saga Jun- 21 Riviera Season 3 Away Jul- 21 Star Trek Discovery Foundation Jungle Cruise Wonder Woman 1984 8 8 Investor Update Q2 FY21
Slide 10: Tech/Tech Enabled Services – Signs of recovery
Tech/Tech Enabled Services – Signs of recovery Revenue Rebound in EBITDA Margins – at ~38% for H1FY21 156 131 ▪ COVID Impact on revenues has been limited – backed by strong client relations ▪ Business turnaround plan accelerated on the back of COVID - company has shown promise by delivering positive
Slide 11: India FMS – Heavily Impacted by COVID
India FMS – Heavily Impacted by COVID Revenues Highlights: 78 ▪ Delivered revenue of Rs 37 Cr with Adj, EBITDA margin at ~ 35%+ ▪ With relaxation in government imposed restrictions and shoots beginning from 37 August, revenues beginning to start trickling in slowly; however recovery will still take
Slide 12: Top Bollywood Projects
Top Bollywood Projects Upcoming Movie Projects Recent TV Commercials Netflix Kellogs https://www.youtube.com https://www.youtube.com /watch?v=vJlntV2iFEQ /watch?v=0BTVID2lGOg 83 Coolie No 1 Gangubai Kathiawadi Vivo IPL 2020 Google https://www.youtube.com https://www.youtube.com /watch?v=AvTXSeDmho /
Slide 13: Debt profile
Debt profile ▪ Consolidated Net Debt of Rs. 3,287 Cr as on 30th September 2020 o Includes Operating Lease Liability of ~ Rs. 600 Cr added to the Balance Sheet on adoption of IndAS 116 ▪ LTM Net Debt / Adj EBITDA (Pre IndAS 116) has improved to ~3.6x from 4x+ levels earlier ▪ The Company and its subs
Slide 14: About Prime Focus
About Prime Focus
Slide 15: PFL@ FY20
PFL@ FY20 Delivered creative services in 4 of top 10 global B.O. hits released in FY20 Revenues1 Adj. EBITDA2 & EBITDA Margin (%) 950 FY16 FY17 23.0% FY18 23.7% FY19 FY20* 28.0% Robust & growing Order Book despite 1 VES For work on 3,013 Chernobyl 850 20.3% 20.4% 2,645 750 17.6% 23.0% COVID outbreak
Slide 16: Corporate Structure
Corporate Structure Founders Reliance IDBI Trusteeship Affirma Other 34.9% 10.5% 35.08% 24.5% 21.9% 7.9% (Malhotra Family) Group Services Ltd. Capital Public Prime Focus LTD. (India) Listed on BSE /NSE (Market Cap# Rs 1,114 cr) 73.75%; 71.3%; 3.5% by Ambit, PFL full diluted rest held by basis manage
Slide 17: Strong Leadership in all verticals
Strong Leadership in all 3 verticals Tier-1 Visual Effects Creative 5 Player & 30% Market Services Oscars Share in 3D Conversion • Visual Effects, including 3D Conversion and Animation Leader in cloud solutions for Media &Entertainment Tech/Tech industry Enabled • CLEARTM Media ERP Suite • Cloud-bas
Slide 18: Creative Services: World's No. 1 independent Tier 1 player
Creative Services: World’s No. 1 independent Tier 1 player Strong Leadership Proven Expertise 5 Oscar wins for Tier-1 Visual Effects Player House of choice for Inception, Interstellar, visually enhanced Ex Machina, Blade services Runner 2049 & First Man Top Grossers Unprecedented scale 89% US$354 mn
Slide 19: Technology Services: Pioneer & leader in cloud solutions for M&E industry
Technology Services: Pioneer & leader in cloud solutions for M&E industry Owns & operates World’s only Continue to have a robust Strong revenue model with Revenue at Rs. 3.0 bn, 91% Annuity contribution & hybrid cloud enabled Media order book to be executed 9% share ERP platform – CLEAR™ over next 3
Slide 20: 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 Enterprise SAP for M&E Applications Industry Transform Legal Marketing Workflow
Slide 21: 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 22: '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 23: Robust financial performance ...
Robust financial performance ... Strong Revenue Growth Strong Growth in Adj. EBITDA Margins Operating profit Revenue 700 23.0% 23.7% 17% CAGR 25.0% Operating Profit 12% CAGR 20.3% 20.5% 30% CAGR 600 500 617 20.0% 440 17.1% 450 3,013 500 544 537 372 2,645 400 348 353 501 15.0% 350 2,178 2,314 400 300
Slide 24: .. and continued focus on leverage
.. and continued focus on leverage Reported Net Debt / EBITDA Net Debt – Rs 25 bn 5.7x 4.3x 4.4x 3.0x 4.3x 4.0x 2.4x FY14 FY15 FY16 FY17 FY18 FY19 FY20* Interest cost <10% on the back of higher share of foreign currency loans As on 30th March, 2013 As on 31st Mar, 2020 Proportion of $ linked debt Ov
Slide 25: Annexure
Annexure
Slide 26: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Crore) Q2FY21 Q2FY20 Q1FY21 H1FY21 H1FY20 Variance Variance Variance Net sales / income from operations 652 684 -5% 605 8% 1,257 1,360 -8% Other Income 4 5 -15% 3 32% 8 7 3% Total Income 657 689 -5% 608 8% 1,265 1,368 -8% Total E
Slide 27: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Crores) Q2FY21 Q2FY20 Q1FY21 H1FY21 H1FY20 Variance Variance Variance Net sales / income from operations 17 32 -46% 7 148% 25 68 -64% Other income 6 7 -6% 6 2% 12 10 22% Total Income 24 39 -39% 13 80% 37 79 -53% Total Expenditure 1
Slide 28: Balance Sheet - Assets
Balance Sheet - Assets Standalone Consolidated Particulars 30-Sep-20 30-Sep-19 30-Sep-20 30-Sep-19 Assets Non-Current Assets Property, Plant and Equipment 235 359 393 533 Capital Work In Progress 10 8 38 18 Goodwill - - 1,073 1,037 Other Intangible assets 0 1 449 444 Rights to Use Asset 302 240 860
Slide 29: Balance Sheet – Equity & Liabilities
Balance Sheet – Equity & Liabilities Standalone Consolidated Particulars 30-Sep-20 30-Sep-19 30-Sep-20 30-Sep-19 Equity and Liabilities Equity Equity Share Capital 30 30 30 30 Share warrant money received - - - - Other Equity 1,185 1,056 380 434 Equity attributable to equity holders of the parent 1,
Slide 30: PFL Shareholding Pattern
PFL Shareholding Pattern As on 30th September 2020 Outstanding shares – 299 mn Others Public, 7.99% IDBI Trusteeship Promoters, 34.96% Services Ltd., 24.49% Affirma Capital, RMW Financial 21.99% Services , 10.57% 29 Investor Update Q2 FY21 29
Slide 31: Contact us
Contact us Alok Gupta Prime Focus Limited Phone: +91 8291070073 Email: alok.gupta@primefocus.com 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. We provide en