Slide 1: Prime Focus Limited FY14 Investor Presentation
Prime Focus Limited FY14 Investor Presentation August 2014 FY14 is for 15 months ending June-2014 Earnings Presentation FY14
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 I. Recent Highlights……………………………………………..04 II. Quarter ending June-14 & FY14* Performance i. Key highlights………………………………………….17 ii. Financial performance ……………………………….18 iii. Business updates……………………………………..23 III. Growth Outlook & Strategy………………………………….28 IV. Annexure i. Shareholding pattern……
Slide 4: PFL…The Paradigm Has Been Shifted
PFL…The Paradigm Has Been Shifted Bold strategic roadmap adopted a decade back transforms PFL into World’s Largest Global Integrated Media Services player Unique DNA Present in top M&E Higher growth ahead Markets ‘Creative cum tech’ Increasing presence Acceleration via M&A combination helps PFL acro
Slide 5: Double Negative and Reliance MediaWorks (FMS) merge with Prime Focus
Double Negative and Reliance MediaWorks (FMS) merge with Prime Focus Double Negative Europe's largest and one of Unmatched customer value proposition top 3 independent Global VFX players globally Largest Global Independent Tier 1 VFX and 3D Conversion services provider PRIME FOCUS Strong global
Slide 6: Synergies to create sustainable value through enhanced efficiencies
Synergies to create sustainable value through enhanced efficiencies Significant revenue enhancement opportunity and cost synergies to boost EBITDA margins in the near to medium term Global leadership: larger contracts, top quality Strong client base in and unmatched execution capability Bollywoo
Slide 7: Creating an unmatched, winning proposition in Media Services
Creating an unmatched, winning proposition in Media Services 2D & 3D VFX Cloud Tech. Sevices Post Prod/Asset rentals $264mn p.a. new $2.2 - 2.5 bn market Digital content solutions Indian post production releases movie 10% 5-year CAGR market to grow at 5% market to grow at 17% conversion op
Slide 8: Merger with DNEG catapults PFW into Tier 1 VFX leadership globally
Merger with DNEG catapults PFW into Tier 1 VFX leadership globally About Double Negative (DNEG) Investment Rationale Europe’s largest independent VFX house • Entry into top league in VFX Among top 3 globally services • Move up the value-chain with more Strong and deep Hollywood relationships,
Slide 9: DNEG-PFW becomes the leading, independent Tier 1 VFX provider
In one move, DNEG-PFW becomes the leading, independent Tier 1 VFX provider PFW + DNEG merger a smart move given the fragmented nature of VFX industry and high entry barriers to industry’s Tier 1 which controls a major chunk of business Revenue > ~$150 mn Top 5 involved in > 65% of Top 25 VFX- heavy
Slide 10: PFW-DNeg largest in scale with unparalleled service capabilities
PFW-DNeg largest in scale with unparalleled service capabilities 3D Conversion VFX Bundling Unified Management in 3D & VFX Access to UK Tax Credits Access to Canadian Tax Credits Studio Facing Offices in Los Angeles Access to Low Cost Productio
Slide 11: 'WorldSourcing' model providing unmatched competitive edge
‘WorldSourcing’ model providing unmatched competitive edge Largest global network providing highest quality, fastest time to market and most efficient pricing & significant cost synergies Stronger front-end Unmatched off-shoring UK synergies CANADA Tax incentives Tax incentives Strong domest
Slide 12: PFL - RMW combination to enhance service offerings in both India and World
PFL - RMW combination to enhance service offerings in both India and World About RMW Film and Media Services Investment Rationale Part of Reliance MediaWorks - India’s leading media company • Integrated facilities with strong with diversified production, distribution and services offerings asset b
Slide 13: RMW FMS – PFL offer complete media services offerings
RMW FMS – PFL offer complete media services offerings Tier 1 player in Indian M&E Services Only end-to-end creative service provider in India RMW Prime Prasad Pixion Ramoji Film Processing Lab Focus Studios Filmcity DI & Digital Cinema Film image enhancement Shooting Stages VFX & Stere
Slide 14: Delivering services across the spectrum for Film, Broadcast & Advertising clients
Delivering services across the spectrum for Film, Broadcast & Advertising clients 360 degree offering with integrated suite of digital media services RMW RMW & PFL RMW RMW & PFL RMW & PFL Film Studios Film Equipment Film Shooting Film Lab Editing/Color Correction/DI RMW & PFL RMW & PFL RMW & PFL RMW
Slide 15: PFW - DNEG & PFL- RMW FMS Transaction Highlights
PFW - DNEG & PFL- RMW FMS Transaction Highlights Promoters to invest Rs 1.2 bn at Reliance to invest Rs 1.2 bn at Rs.52 / - per share Rs.52/- per share + business with 33.5%* 30.2%* Equity Valuation of Rs 3.5 bn Shareholding 100% Prime Focus ** Acquisition of RMW Film & Media services assets in a sl
Slide 16: FY14 & Quarter ending June-2014 Performance
FY14 & Quarter ending June-2014 Performance FY14 is for 15 months ending June-2014 Earnings Presentation FY14
Slide 17: FY14 Highlights
FY14 Highlights: Landmark mergers enhance leadership, fully geared for next phase of global growth New businesses (ViewD+VFX, PFT) deliver strong growth in FY14* – Revenue share of new businesses up to 80% compared to 69% in FY13 – EBITDA share of new businesses up to 80% in FY14 compared to 56% i
Slide 18: FY14: Sustained EBITDA margins and turnaround in PAT
FY14: Sustained EBITDA margins and turnaround in PAT Net Revenues EBITDA & Margin FY14* Rs 10,342 mn FY14 Rs 2,363 mn, 22.8% Margin FY13 Rs 7,622 mn FY13 Rs 1,820 mn, 23.9% Margin Profit Before Tax Profit After Tax FY14 Rs 250 mn FY14 Rs 243 mn FY13 Rs (567) mn FY13 Rs (203) mn *FY14 is for 15months
Slide 19: FY14 Segmental Analysis
FY14 Segmental Analysis: Strong traction in new businesses Segment-wise revenues Figures in Rs Million; Consolidated financials 6,148 FY13 FY14* 4,483 2,088 2,330 2,106 809 ViewD+VFX PFT PP Segment-wise EBITDA Segment-wise EBITDA Margins ViewD+VFX PFT PP FY13 FY14** 34% 1,249 30% 28% 797 793 23% 634
Slide 20: Transient impact on margins in a traditionally weak quarter
Transient impact on margins in a traditionally weak quarter Figures in Rs Million; Consolidated financials Net Revenues EBITDA PBT PAT Quarter ending 1,993 231 (312) (88) June 14 -59% NA NA 6% Quarter ending June 13 1,885 567 168 85 June quarter is a seasonally weak quarter as most of the upcoming
Slide 21: Quarter ending June 2014 Segmental Analysis
Quarter ending June 2014 Segmental Analysis Segment-wise revenues Figures in Rs Million; Consolidated financials Qtr June 13 Qtr June 14 1,152 1,064 488 478 343 353 ViewD+VFX PFT PP Segment-wise EBITDA Unique Factors Affecting Qtrly Results ViewD+VFX seasonality prior to summer releases, Qtr Jun
Slide 22: Debt profile
Debt profile Consolidated gross debt of $ 137 mn (Rs 8,216 mn) in June 2014 compared to $ 134 mn (Rs 8,021 mn) in March 2014 The entire increase is due to a low cost new Tax Credit discounting facility availed in US, which is fundamentally discounting against a Canadian Government receivable fro
Slide 23: Key projects delivered in the last quarter
Key projects delivered in the last quarter Hollywood Bollywood Guardians of Transformers- Edge of the Galaxy Age of Extinction Tomorrow (3D Conversion) (3D Conversion) (3D Conversion) TVCs Maleficent Godzilla Transcendence (3D Conversion) (VFX-DNEG) (VFX-DNEG) Earnings Presentation FY14 23
Slide 24: PFW - Ongoing announced projects - Hollywood
PFW - Ongoing announced projects - Hollywood Batman v Superman Sin City: A Dame Ant-Man (VFX) to Kill For (VFX) (VFX) Exodus: Gods Avengers: Insurgent and Kings (VFX) Age of Ultron (VFX) (VFX) Terminator-Genisys Ninja Turtles (VFX) Kingman: The (3D Conversion) Secret Service (VFX) Earnings Presentat
Slide 25: PFT – On accelerated growth path
PFT – On accelerated growth path Sustained growth with > 30% margins Revenue (Rs mn) EBITDA Margin 2,500 40% 2,088 35% 2,000 37% 30% 29% 29% 30% 25% 1,500 20% 1,000 809 15% 336 10% 500 110 5% - 0% FY'11 FY'12 FY'13 FY14* Revenue by contract type FY14 Revenue by geography FY14 Project based ROW 28% 3
Slide 26: PFT going from strength to strength with new client wins
PFT going from strength to strength with new client wins India’s Broadcast Audience Research Council (BARC) selects Prime Focus Technologies (PFT) for Play-out Monitoring Service. - PFT’s Play-out Monitoring Service will input reliable data in to BARC’s Audience Measurement System for generating T
Slide 27: Achievements
Achievements PFW, has been awarded the production industry’s coveted Apollo Award for its ‘Best Visual Effects’ in White House Down, Prime Focus bagged the award at a ceremony organized on the side lines of Broadcast Asia 2014, at Marina Bay Sands, Singapore. PFT’s CLEAR, world’s first hybrid cloud-
Slide 28: Growth Outlook & Strategy
Growth Outlook & Strategy Earnings Presentation FY14
Slide 29: Strategic plan for next phase of growth
Strategic plan for next phase of growth Strategic Direction Present Future Global leader in stereo 3D conversion (30% share) Strengthen leadership in VFX & Sustain clear leadership 3D by growing presence in all our existing markets – synergies across all M&E Services One of top 3 global VFX
Slide 30: Immense Integration benefits
Immense Integration benefits Huge upside potential Well-planned roadmap targeting profitability and cash flows First 12 months 18-24 months 24-36 months EBITDA Margin up by 4-5+% Phase 3 EBITDA Margin up by 2– 4% Partner of choice for M&E services across Hollywood, Bollywood & other major Phase 2
Slide 31: Fuelling success with marquee clients across the globe
Fuelling success with marquee clients across the globe Creative services Technology services Leading Hollywood and Bollywood studios Leading broadcasters, studios, brands, sports and digital businesses Earnings Presentation FY14 31
Slide 32: Annexure
Annexure Earnings Presentation FY14
Slide 33: PFL Shareholding Pattern Evolution
PFL Shareholding Pattern Evolution As on 31st March 2014 Fully diluted Outstanding shares – 185 mn Outstanding shares* – 299 mn Public & Others 21.2% Public, Institutions 24.0% Promoters 33.5% Promoters 41.6% Corporate Bodies 11.8% SCPE DII 12.2% 3.9% FII/FVCI 1.9% SCPE RMW 19.7% 30.2% *Indicative S
Slide 34: Shareholding as on June 30, 2014
Shareholding as on June 30, 2014 As on 30th June 2014 Outstanding shares – 185 mn Public & Others, 22.2% % Major Non-Promoter Shareholders shareholding Promoter, Standard Chartered PE 19.7% 41.6% Rakesh Jhunjhunwala 6.1% Corporate, Top Class Capital Markets Pvt Ltd 4.5% 12.3% ICICI Prudential Dynami
Slide 35: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Qtr Qtr Qtr % Change % Change Particulars(Rs million) June’ 14 June'13 March’14 YoY QoQ FY14* FY13 Net sales / income from operations 1,993 1,885 2,366 6% -16% 10,342 7,622 Total Expenditure 1,851 1,458 1,852 27% 0% 8,360 5,869 Personnel Cost (including technicia
Slide 36: Consolidated Balance-Sheet
Consolidated Balance-Sheet Figures in Rs Million, consolidated financials Year ended Year ended Particulars June 30, 2014* March 31, 2013 Shareholder's Equity 7,375 5,544 Total Debt 7,475 6,301 Minority Interest 1,613 641 Other Long Term Liabilities 606 177 Provisions 14 13 Trade Payables 1,249 610
Slide 37: About Us
About Us Prime Focus Limited (PFL), the world’s largest media services powerhouse employs over 5,500 professionals in 16 cities across 4 continents and 7 time zones. We provide end-to-end creative and technology services including visual effects, stereo 3D conversion, animation, post-production, Dig