Slide 1: Prime Focus Limited Q3 FY'14 Investor Presentation
PRIME FOCUS LIMITED Q3 FY’14 Investor Presentation
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
Slide 3: Agenda
Agenda Q3 & 9M FY’14 Performance Key highlights 05 Financial performance 06 Business updates 12 Company Overview 18 Annexure Shareholding pattern 25 Corporate structure 26 Financials 27 3 Q3 FY’14 Investor Presentation
Slide 4: Q3 & 9M FY'14 Performance
Q3 & 9M FY’14 Performance
Slide 5: Q3'FY14 Highlights: New businesses driving transformation
Q3’FY14 Highlights: New businesses driving transformation Gravitates into higher orbit buoyed by non-linear new businesses Accelerated quarterly performance with successful delivery of global projects • Strategic focus on new value added businesses spurs non linear growth: VFX+ViewD revenues up 30.1
Slide 6: Q3'FY14: EBITDA margin up ~500bps
Q3’FY14: EBITDA margin up ~500bps Figures in Rs Million; Consolidated financials Net Revenues EBITDA & EBITDA Margin PAT & PAT Margin 2,500 2,137 600 25.0% Q3'FY13 Q3'FY14 21.0% 2,000 1,807 500 600 4.8% 10.0% 20.0% 16.3% 400 5.0% 400 1,500 18.3% 52.2% 448 15.0% 103 0.0% 200 -5.0% YoY 300 YoY -10.0%
Slide 7: Revenue share of new businesses increase to 84%
Revenue share of new businesses increase to 84% Share of value added new businesses (PFT and ViewD+VFX) increase from 64% in Q3’FY13 to 84% in Q3’FY14 Q3'FY13 Q3'FY14 PP 16% PP 36% ViewD+VFX PFT 53% 20% ViewD+VFX 64% PFT 11% View D is 2D to 3D Conversion PP includes global Post Production revenues 7
Slide 8: Robust growth, margins up in new businesses
Robust growth, margins up in new businesses Figures in Rs Million; Consolidated financials Segment-wise revenues Q3'FY13 Q3'FY14 43% YoY -47% 112% YoY 1,360 YoY 950 654 431 345 203 ViewD+VFX PFT PP Segment-wise EBITDA Segment-wise EBITDA Margins Q3'FY13 Q3'FY14 35.0% 117% 30.5% YoY 143% -70% ViewD+V
Slide 9: 9M'FY14: EBITDA up ~140bps
9M’FY14: EBITDA up ~140bps Figures in Rs Million; Consolidated financials Net Revenues EBITDA & EBITDA Margin PAT & PAT Margin 1,600 22.2% 25.0% 6,500 20.8% 1,400 9M'FY13 9M'FY14 5,982 20.0% 6,000 1,200 600 8.0% 5,653 500 6.7% 1,000 6.0% 15.0% 5,500 400 800 4.0% 300 5.8% 12.7% 1,325 10.0% 402 2.0% 5
Slide 10: 9M'FY14: Margins up in new businesses
9M’FY14: Margins up in new businesses Figures in Rs Million; Consolidated financials Segment-wise revenues 11% 9M'FY13 9M'FY14 YoY -34% YoY 109% 3,576 YoY 3,222 1,871 1,172 1,234 560 ViewD+VFX PFT PP Segment-wise EBITDA Segment-wise EBITDA Margins 9M'FY13 9M'FY14 30.5% 31.1% 44% YoY -48% 22.3% 28.2%
Slide 11: Improving debt profile
Improving debt profile Focus on reducing debt and de-leveraging the balance-sheet • Consolidated debt of $120.0mn (Rs 7,524.6mn) in September 2013 compared to $120.8mn (Rs 7,459.3mn) in December 2013 Geographical break-up of debt ($mn) Debt Composition ($mn) Financial India (Dollar Leases, $6.1 link
Slide 12: Strengthens leadership in Hollywood 3D market with award winning Gravity
Strengthens leadership in Hollywood 3D market with award winning “Gravity” Prime Focus World wins International 3D Society Award for Gravity Prime Focus World (PFW) has won the award in ‘Outstanding 2D to 3D Conversion in Theatrical Motion Picture’ category for its spectacular work on Gravity at the
Slide 13: Recognition for outstanding work and innovations
Recognition for outstanding work and innovations Prime Focus wins Best VFX for ‘White House Down’ at 24 FPS Annual International Animation Awards 2013 Prime Focus' spectacular work on 'White House Down' has won the award for Best VFX in International Feature Film category at 24 FPS Annual Internatio
Slide 14: PFW – projects delivered in the last quarter
PFW – projects delivered in the last quarter 2,000+ 3D shots and ~1,500VFX shots delivered I, Frankenstein The Two Faces of The Christmas (1855 shots, 3D January (76 Candle (145 Conversion, Exclusi shots, VFX, Exclusi shots, VFX, Exclusiv ve Partner) ve Partner) e Partner and DI) Vampire Academy The
Slide 15: PFW - Ongoing announced projects
PFW - Ongoing announced projects Sin City: A Dame to Kill For (2500+ Edge of Tomorrow The Gu-an shots, VFX & 3D (3D (VFX, Exclusive Conversion, Exclusi Conversion, Exclusi Partner) ve Partner) ve Partner) Seventh Son (1700+ shots, 3D Conversion, Exclusiv Maleficent (3D e Partner & additional Convers
Slide 16: PFT – Monetizing path breaking Cloud technology
PFT – Monetizing path breaking ‘Cloud’ technology Successful launch of ‘world’s largest digital media services cloud’ in True North facility – managing 350,000+ hours of content, 100+ TV shows a day and is digital backbone for 200+ TV channels Delivered India's first multi sports, Direct to Consumer
Slide 17: PFT – Sustained growth in revenues and EBITDA
PFT – Sustained growth in revenues and EBITDA Sustained & accelerated growth Q3'FY13 Q4'FY13 Q1'FY14 Q2'FY14 Q3'FY14 431 398 343 301 203 151 91 104 110 62 PFT Revenue PFT EBITDA Over 30% EBITDA margins 35% 31% 30% 30% 28% Q3'FY13 Q4'FY13 Q1'FY14 Q2'FY14 Q3'FY14 Drop in margin in Q2FY14 due to commen
Slide 18: Company Overview
Company Overview
Slide 19: Global integrated player
Global integrated player Global leader in creative services (3D conversion, VFX and post production) PFT, unique blend of IT expertise and decades of M&E industry insights Leading global player in 3D conversion (~30% ViewD+VFX market share) and VFX (Revenue - 60%*) Pioneered ERP solutions for M&E in
Slide 20: 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 3D Conversion CLEAR – Media ERP VFX Media Processing Services Animation Preparation Localization Digital Intermediate Packaging,
Slide 21: With extensive relationships
With extensive relationships Creative services Technical services Leading Hollywood and Bollywood Leading broadcasters, digital service studios providers & advertisers 21 Q3 FY’14 Investor Presentation
Slide 22: 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 22,000 Sq ft Low-cost
Slide 23: Strong, sustainable and scalable growth drivers
Strong, sustainable and scalable growth drivers Non-linear growth in PFT, continued relationships in PFW Replicate India success of PFT into all other major M&E markets Up-sell core solution CLEAR in existing and Technical Services future clientele of PFW PFL: Grow along and Launch new solutions int
Slide 24: Annexure
Annexure
Slide 25: Shareholding pattern
Shareholding pattern As on 31st December 2013 Outstanding shares – 18.5 mn Major Non-Promoter % Corporate, Shareholders shareholding DII, 4% 12% FII/FVCI, 3 % Standard Chartered PE 20% Rakesh Jhunjhunwala 6% Public & Others, 20 Top Class Capital Markets Pvt Ltd 5% SCPE, 20 % % ICICI Prudential Dynam
Slide 26: 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) service
Slide 27: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement % Chg % Chg Particulars (` mn) Q3 FY'14 Q3 FY'13 Q2 FY'14 9M FY'14 9M FY'13 % Chg YoY YoY QoQ Net sales / income from operations 2,136.8 1,806.8 1,960.6 18.3% 9.0% 5,982.0 5,652.7 5.8% Total Expenditure 1,688.8 1,512.41 1,509.81 11.7% 11.9% 4,656.6 4,477.0 4.0% P
Slide 28: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement % Chg % Chg Particulars (` mn) Q3 FY'14 Q3 FY'13 Q2 FY'14 9M FY'14 9M FY'13 % Chg YoY YoY QoQ Net sales / income from operations 524.4 439.5 474.8 19.3% 10.5% 1,501.5 1,384.2 8.5% Total Expenditure 357.6 328.12 339.36 9.0% 5.4% 1,041.3 966.8 7.7% Personnel Cost 138
Slide 29: About Us
About Us Prime Focus Limited, a global leader in media and entertai-ent industry services employs over 4,300 professionals in 11 cities across 3 continents and 5 time zones. We provide end-to-end creative and technical services including visual effects, stereo 3D conversion, video/audio post-product
Slide 30: About Prime Focus Limited
About Prime Focus Limited Prime Focus Limited, a global leader in media and entertai-ent industry services employs over 4,300 professionals in 11 cities across 3 continents and 5 time zones. We provide end-to-end creative and technical services including visual effects, stereo 3D conversion, video/a