Prime Focus Limited · NSE:PFOCUS
Prime Focus — Q1 FY19 Earnings Presentation
33 slides from Prime Focus's earnings presentation, August 2018
Slide 1: Investor Presentation August 2018
Investor Presentation August 2018
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 m
Slide 3: Contents
Contents 1 Q1 FY19 Performance … 4-16 2 About Prime Focus … 17-27 3 Annexures … 28-32 - Financials - Shareholding Pattern
Slide 4: Q1FY19 Performance
Q1FY19 Performance
Slide 5: Strong start to the year with robust 22% YoY growth in revenues
Strong start to the year with robust 22% YoY growth in revenues Consolidated Worked on 2 of the biggest blockbusters for Income the quarter 22% Rs. 638 Cr YoY Adjusted Adjusted EBITDA1 EBITDA1 Margin Rs. 118 Cr 18.4% Tech/Tech Enabled services continues to sign new contracts with existing and new cl
Slide 6: Revenue up by 22% YoY for the quarter
Revenue up by 22%YoY for the quarter Revenue Adjusted EBITDA1 Revenue contribution 638 India, 524 FMS; 7% 21.7% 114 118 35,0% YoY 120 Tech/Tec 30,0% 100 25,0% h Enabled 80 20,0% Services; 60 12% 40 21,7% 18,4% 15,0% 10,0% 20 5,0% Creative - 0,0% Services; Q1FY18 Q1FY19 Q1FY18 Q1FY19 81% Adjusted EBI
Slide 7: Creative Services: Robust 30% YoY growth in revenues with higher visibility
Creative Services: Robust 30% YoY growth in revenues with higher visibility Revenue Revenue up 30%YoY to reach Rs 527 Cr. 527 407 Strong execution of VFX projects and continued broad basing in revenues 29.7% with higher share coming from OTT / TV & Feature Animation YoY Revenues from new geograp
Slide 8: Delivered top Hollywood blockbusters for the quarter
Delivered top Hollywood blockbusters for the quarter $2,044 $733 mn mn Largest domestic and worldwide opening Largest opening day for an R-rated film ever weekend box office record 5th highest grossing release of all-time for 4th largest global release of all-time Fox 8 Worldwide box office
Slide 9: Upcoming Hollywood Releases for FY19
Upcoming Hollywood Releases for FY19 16 Nov 2018 Oct 2018 14 Sep 2018 2 Nov 2018 27 Jul 2018 05 Sep 14 Mission: Impossible - Alpha Venom Fantastic Beasts: The Bohemian Rhapsody Fallout Crimes of Grindelwald 2018 2018 10 Aug 2018 Dec2019 Aug 2019 19 Oct 2018 12 Oct 2018 2 Aug 2 Aug 21 10 The Meg The
Slide 10: Tech/Tech Enabled Services delivers steady revenues with robust order book
Tech/Tech Enabled Services delivers steady revenues with robust order book Revenue Highlights: 82 79 Soft quarter for Revenue and EBITDA for the Tech business Marginal -4% decline in revenue to Rs 79 Cr with EBITDA at 17.4% in the quarter. Order book remains robust at ~$230 mn+ with ~15% YoY i
Slide 11: Tech/Tech Enabled Services Operational Highlights
Tech/Tech Enabled Services Operational Highlights Quality of Revenue – Q1 FY 19 Project Based 21% Rest of World Services 46% India 48% Product 54% Annuity 52% 79% By Geography By Contract type By Product Mix RoW More clients migrated to the new DAX Production Cloud, opening possibilities for such
Slide 12: India FMS Revenue stable and margins maintained at ~40%
India FMS Revenue stable and margins maintained at ~40% Revenue Highlights: 42 42 Stable revenues at Rs 42 Cr with EBITDA margin at 40.2% in the quarter. Worked on Bollywood blockbusters like Raazi and Race 3 among other movies like Parmanu: The Story of Pokhran, Bhavesh Joshi and Blackmail St
Slide 13: Indian Film and Media Services continues to be strong
Indian Film and Media Services continues to be strong Worked on top Bollywood movies Worked on Netflix India’s first original series Rs 169 Rs 123 cr cr 13 1 For All releases till 31st March, 2018 13 Investor Update Q1 FY19
Slide 14: Indian Film and Media Services continues to remain strong
Indian Film and Media Services continues to remain strong Upcoming Releases for FY19 TV Commercials for the quarter Hyundai Colgate Swiggy Paytm Netmeds Coca-Cola 14 Investor Update Q1 FY19 14
Slide 15: Finance Cost
Finance Cost Derivative instruments have to be tested for valuation INR Cr FY18 Q1 FY19 [option value] and probability of payment and are hence revalued at the end of each quarter – the delta has to be Interest 118 31 taken as charges against Finance costs [Non – cash] – Rs.8cr Fair Value Impact o
Slide 16: Debt profile
Debt profile Consolidated Net Debt of Rs.1,694cr as on 30th June, 2018; Debt in INR terms impacted significantly on account of Rupee depreciation – from 64.82 Rs./$ to 68.30 Overseas Debt [59%] is in $; is serviced through $ cash flows and hence forms a natural hedge for the group Right sizing
Slide 17: About Prime Focus
About Prime Focus
Slide 18: World's largest independent & integrated media services powerhouse
World’s largest independent & integrated media services powerhouse Rs 22,919 mn 25% FY13-FY18 Rs 5,435 mn xx% 23.7% FY18 Revenue Revenue CAGR FY18 PAT Adjusted EBITDA* Margin Adj. EBITDA Margin 9,000+ PFL Minds 18 cities in 5 continents Creative Services 78% Technology 15% India FMS 7% 3 rd Oscar in
Slide 19: Strong Leadership in all 3 verticals
Strong Leadership in all 3 verticals Tier-1 Visual Effects Creative Player & 30% Market Services 4 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 20: Corporate Structure
Corporate Structure Founders Reliance Standard Other 34.97% 35.08% 22.0% 7.95% (Malhotra Family) Group Chartered PE Public Promoter has recently announced infusion of Rs 330 cr through Warrants at PFL at Rs.106 per share. The proceeds are largely expected to be used to pay off Debt; Proforma holding
Slide 21: Creative Services: World's No. 1 independent Tier 1 player
Creative Services: World’s No. 1 independent Tier 1 player Strong Leadership Proven Expertise 4 Oscar wins for Tier-1 Visual Effects Player House of choice for Inception, Interstellar, visually enhanced Ex Machina & Blade services Runner 2049 Top Grossers Unprecedented scale 78% US$282 mn 6,000+ con
Slide 22: 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 Strong revenue model with Robust order book of $230 Robust growth in revenue, hybrid cloud enabled Media 78% Annuity contribution & mn+ to be executed over up 10.5x at Rs. 3.5 bn in ERP platform –
Slide 23: 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 SAP for M&E Enterprise Applications Industry Transform Legal Marketing Workflow
Slide 24: 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 25: '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 26: Robust financial performance ...
Robust financial performance ... All absolute figures in Rs. million Strong Revenue Growth Strong Growth in EBITDA Margins Operating profit Revenue 25% CAGR EBITDA EBITDA Margin 24% CAGR Operating Profit 11% CAGR 25.000 - 12mth numbers 22.919 3.500 3.232 3.256 21.781 6.000 5.435 25% 1,901 5.014 3.00
Slide 27: .. And significant improvement in Leverage
.. And significant improvement in Leverage Net Debt / EBITDA 5,7x Net Debt – Rs 15.4 bn 4,3x 4,4x 3,8x 2,4x 3,0x FY13 FY14* FY15 FY16** FY17 FY18 Interest Cost <10% on the back of higher share of Foreign currency loans As on 30th March, 2013 As on 30th June, 2018 Proportion of $ linked debt Overseas
Slide 28: Annexure
Annexure
Slide 29: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement % YoY % QoQ Particulars (Rs Million) Q1FY19 Q1FY18 Q4FY18 TTM Variance Variance Net sales / income from operations 624 516 21% 584 7% 2,378 Other Income 14 9 66% 5 168% 28 Total Income 638 524 22% 589 8% 2,406 Total Expenditure 521 410 27% 487 7% 1,917 Personnel
Slide 30: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement % YoY % QoQ Particulars (Rs Million) Q1FY19 Q1FY18 Q4FY18 TTM Variance Variance Net sales / income from operations 34 35 -1% 35 -3% 145 Other income 8 8 2% 2 223% 27 Total Income 42 42 -1% 38 12% 172 Total Expenditure 25 26 -2% 30 -15% 108 Personnel Cost (including
Slide 31: PFL Shareholding Pattern
PFL Shareholding Pattern As on 30th June - 2018 Outstanding shares – 299 mn Others Public; 7,95% SCPE; 22,00% Promoters; 34,97% RMW Financial Services ; 35,08% 31 Investor Update Q1 FY19 31
Slide 32: Contact us
Contact us Alok Gupta Nitesh Kumar/ Seema Shukla Prime Focus Limited Four-S Services Pvt Ltd Phone: +91 8291070073 Phone: +91 98915 70250/+91 124 4251442 Email: alok.gupta@primefocus.com Email: nitesh.kumar@four-s.com seema@four-s.com www.primefocus.com © 2016 Prime Focus Limited. All Rights Reserve
Slide 33: About Prime Focus Limited
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 and 7 time zones. We provide end-to-end creative services (visual effects, stereo 3D conversion and animation),