Slide 1: Prime Focus Limited Q3 & 9MFY15 Investor Presentation
Prime Focus Limited Q3 & 9MFY15 Investor Presentation May 2015 Q3 FY15 Earnings Presentation 1
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. Q3 & 9MFY15 Performance...............4-14 II. Industry Opportunity.....................15-20 III. About us..........................21-24 IV. Annexure i. Financials.............................26 Q3 FY15 Earnings Presentation 3
Slide 4: Margins expand with robust growth & integration synergies
Margins expand with robust growth & integration synergies Step up in performance coupled with coveted Oscar win Creative services see multiplier effect as revenues & margins grow in a seasonally strong quarter. Technology services continue on path of non linear growth Revenues up post DNEG & Margins
Slide 5: Key operational highlights
Key operational highlights All segments on accelerated growth path Creative Services Established as world’s largest globally integrated services powerhouse DNEG bags Academy award for Interstellar, 2nd after Inception Steady Integration of DNEG continues • Significant cross-sell opportunities in new
Slide 6: Q3 FY15: Stellar performance in a strong quarter
Q3 FY15: Stellar performance in a strong quarter Robust growth, integration benefits boost profitability Figures in Rs Million; Consolidated financials Net Revenues EBITDA/Margin PBT before exceptional items EBITDA EBITDA Margin PBT Before Exceptional Items Margin 30.0% 12.2% 4,500 4,205 1,400 25.0%
Slide 7: Q3FY15 Segmental Analysis
Q3FY15 Segmental Analysis: Creative & Technology services revenues up 20%QoQ & 23%QoQ Segment-wise revenues Figures in Rs Million; Consolidated financials 2,982 Qtr Sep 14 Qtr Dec 14 Qtr Mar 15 2,684 2,475 579 713 468 350 253 277 Creative Services Technology Services FMS Segment-wise EBITDA Segment-
Slide 8: PFW's key Q3 projects include current B.O. hits
PFW’ key Q3 projects include current B.O. hits Hollywood Bollywood Avengers Mortdecai Age of Ultron TVCs EX-Machina The Gunman Q3 FY15 Earnings Presentation 8
Slide 9: With a strong pipeline of ongoing projects
With a strong pipeline of ongoing projects Mission Insurgent Batman v Superman Impossible 5 Ant-Man Terminator-Genisys Grimsby The Hunger Alice in Games: Wonderland: Mockingjay-Part 2 Through the Looking Glass Q3 FY15 Earnings Presentation 9
Slide 10: DNEG wins coveted Oscar
DNEG wins coveted Oscar “Interstellar” wins 87th Academy award for Best VFX First Oscar for the Prime Focus group “Congratulations to entire team for bringing “In top 10 box office grossers of 2014” home this exceptional honour. It is an incredibly Box Office Collection of $673mn proud moment for al
Slide 11: Prime Focus partners FICCI Frames 2015
Prime Focus partners FICCI Frames 2015 At the forefront of thought leadership in the sector PFL is session co-partner at FICCI FRAMES 2015 (2nd consecutive year) FICCI FRAMES 2015 is Asia's largest M&E summit covering Films, Broadcast (TV & Radio), Digital Entertainment, Animation, Gaming and Visual
Slide 12: PFT continues on non-linear growth path
PFT continues on non-linear growth path New partnerships and services fuel growth Revenue up 23% QoQ and 66% YoY Launches ‘Digital Next’ Go to Market campaign at NAB Show; offering a compelling suite of Digital & CLOUD solutions for M&E enterprises expanding their Digital presence Riding on the succ
Slide 13: Debt profile
Debt profile Despite acquisitions/mergers, consolidated debt maintained at $157mn (Rs.9,837mn) in Mar’15 – same level as Dec’14 * Repayment of Debt offset through increase in Debt raised at PFL level through NCDs for payment towards the strategic partnership with Gener8 Debt Composition Geographical
Slide 14: Q3FY15 reflects benefits of integration initiatives
Q3FY15 reflects benefits of integration initiatives EBITDA Margin up by 4-5% • Phase 1 started with PFT-DAX and PFW-DNeg EBITDA Margin up by 2– 4% • Phase 3 integration • Partner of choice for M&E • PFL – RMW FMS services across • Phase 2 Hollywood, Bollywood & business merger EBITDA Margin up by 1.
Slide 15: Industry Opportunity
Industry Opportunity Q3 FY15 Earnings Presentation 15
Slide 16: Media services on an high growth trajectory
Media services on an high growth trajectory; De-risked to recessionary pressures with services models Internet driven screens Overseas collections: – 77.5% BO collections of Transformers : Age of Extinction were from Mobiles, Tablets and Growing Content overseas Desktops consumption Recent 3D Movies
Slide 17: Expanding E&M industry globally
Expanding E&M industry globallyL. Global E&M spend Global box office ($bn) 2.5 2.3 120 40 36.4 34.7 35.9 110.1 35 32.6 2 1.8 100 31.6 88.3 30 80 1.5 25 60 23.9 25 26 20 21 22.4 1 40 15 0.5 20 10 0 0 5 10.6 10.2 10.8 10.9 10.4 2013 2018 0 Global E&M Spend($ tn) 2010 2011 2012 2013 2014 Global Filmed
Slide 18: Growing opportunities in key segments
Lwith growing opportunities in key segments Growing VFX revenues ($bn) Global no of 3D Screens 70 64.9 2.50 2.10 60 1.96 53.1 2.00 50 45.5 1.77 1.61 40 36.3 1.50 1.33 1.35 30 22.4 1.00 20 10 0.50 0 2010 2011 2012 2013 2014 0.00 2008 2009 2010 2011 2012 2013 US/Canada EMEA Asia Pacific Latin America
Slide 19: Indian E&M industry on higher growth trajectory
Indian E&M industry on higher growth trajectory E&M revenues set to double by 2019.. .. With 1.6x growth from film revenue Figures in Rs Billion 2500 250 204 1964 200 2000 1500 150 125 126 112 1026 93 918 100 83 1000 821 652 728 500 50 - 0 2010 2011 2012 2013 2014 2019e 2010 2011 2012 2013 2014 2019
Slide 20: Digital content solutions: a large market opportunity
Digital content solutions. . . a large market opportunity Figures in $ Billion Total Addressable market is expected to North America, the largest market while Asia grow at CAGR of 5% and Latin America, fastest growing markets 14.0 Latin America, TAM 12.9 13.0 8% 12.3 Asia North 12.0 11.7 Pacific, Am
Slide 21: About us
About us Q3 FY15 Earnings Presentation 21
Slide 22: PFL: World's Largest Integrated Media Services player
PFL: World’s Largest 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 across all major catapulting to global emerge as only player to content markets with dominance - successf
Slide 23: 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 Q3 FY15 Earnings Presentation 23
Slide 24: 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 domestic TV an
Slide 25: Annexure
Annexure Q3 FY15 Earnings Presentation 25
Slide 26: Consolidated Unaudited Profit & Loss Statement
Consolidated Unaudited Profit & Loss Statement Qtr 9M 9M Qtr ending Qtr ending ending ending ending Particulars (Rs mn) Mar 15 Dec 14 Mar 14 % Q-o-Q Mar 15 Mar 14 Net sales / income from operations 4,205 3,187 2,513 32% 10,894 6,697 Total Expenditure 3,153 2,792 1,999 13% 9,335 5,284 Personnel Cost
Slide 27: 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