Ufo Moviez India Ltd. · NSE:UFO
Ufo Moviez India — Q4 FY2018 Earnings Presentation
36 slides from Ufo Moviez India's earnings presentation, May 29, 2018
Slide 1: Q4 & FY18 Results Presentation
Q4 & FY18 Results Presentation May 29, 2018 * in terms of number of screens.
Slide 2: Safe Harbour
Safe Harbour The presentation has been prepared by UFO Moviez India Limited together with its subsidiaries (the “Company”), for informational purpose only and does not constitute or form part of an offer, solicitation or invitation of any offer to purchase or subscribe for any securities of the Comp
Slide 3: UFO Moviez at a Glance
UFO Moviez at a Glance India’s Largest Digital Cinema Network and In-Cinema Advertising Platform 3,897 High Impact Advertising Screens 1,194 Multiplex & 2,703 Single Screens with an average weekly seating capacity of ~49 million 2,470 Advertisers in FY18 Across 1,363 Cities & Towns Digitally Deliver
Slide 4: Advertisement Screen Strength
Advertisement Screen Strength 3
Slide 5: Stable Advertisement Screen Network, with an increasing proportion of Multiplex Screens
Stable Advertisement Screen Network, with an increasing proportion of Multiplex Screens In-Cinema Advertisement Network 3,897 3,784 3,713 3,745 3,592 2,703 2,970 2,718 2,856 2,902 1,027 1,194 690 814 857 FY14 FY15 FY16 FY17 FY18 Multiplex Screens Single Screens 4
Slide 6: Strong Presence of Advertisement Screens across India
Strong Presence of Advertisement Screens across India Region wise Distribution of Advertisement Screens 7,142 868 1,238 1,355 3,897 623 3,245 245 776 462 355 1,000 3,681 1,408 110 2,183 418 1,498 552 328 UFO Qube UFO + Qube Major Multiplex Chains Post Merger* Data as on March 31, 2018 * Merger is aw
Slide 7: Key Performance Indicators
Key Performance Indicators 6
Slide 8: Robust Advertisement Performance
Robust Advertisement Performance Advertisement Revenues (INR Mn) 2,136 1,790 1,578 1,167 999 695 FY13 FY14 FY15 FY16 FY17 FY18 7
Slide 9: Sustained Growth in In-Cinema Advertising
Sustained Growth in In-Cinema Advertising INR Mn Government + PSU Corporate + Hyperlocal 2,047 1,770 1,538 FY13 – FY18 43% Revenue CAGR 24% 1,164 44% 999 47% 695 46% 41% 19% 57% 53% 56% 81% 59% 54% FY13 FY14 FY15 FY16 FY17 FY18 # of Screens with Ad Rights 3,071 3,592 3,784 3,713 3,745 3,897 Annual A
Slide 10: Driving Growth in Recurring Revenues and Profits
Driving Growth in Recurring Revenues and Profits • The remnant revenue and profits from VPF Sunset in FY18 are expected to fall off over FY19 and FY20 EBITDA (INR Mn) 1,848 1,869 1,730 • Recurring business has offset Sunset impact, resulting in 1,609 618 575 226 significant improvement in profitabil
Slide 11: Demonstrated Levers for Shareholder Value Creation
Demonstrated Levers for Shareholder Value Creation Capital Intensity Capital Efficiency Capex (INR Mn) RoCE (%) 1,459 17.63% 19.24% 16.81% 12.66% 14.34% 695 553 654 419 FY14 FY15 FY16 FY17* FY18* FY14 FY15 FY16 FY17* FY18* Initial high capital intensity over; generating higher revenues with lower Ne
Slide 12: Key Financial Parameters
Key Financial Parameters Net Fixed Asset Turnover (x) RoE (%) 14.93% 2.50 12.83% 13.09% 13.20% 2.30 1.96 11.49% 1.56 1.23 FY14 FY15 FY16 FY17* FY18* FY14 FY15 FY16 FY17* FY18* Net Debt** (INR Mn) Net Cash Flow from Operating 1,108 Activities (INR Mn) 507 1,588 24 1,215 1,138 1,248 946 -744 -1,095 FY
Slide 13: Key Updates
Key Updates 12
Slide 14: Update on Composite Scheme of Arrangement and Amalgamation between UFO and Qube
Update on Composite Scheme of Arrangement and Amalgamation between UFO and Qube UFO Nov 1, 2017 Mar 7, 2018 Apr 10, 2018 May 21, 2018 Pending Pending • Board of • Observation • National • Holding • Final order of • Merger to Directors of Letter received Company Law Shareholders the NCLT become the C
Slide 15: Financial and Operating Highlights
Financial and Operating Highlights 14
Slide 16: Consolidated Financial Highlights
Consolidated Financial Highlights Q4FY18 YoY Comparison Total Revenue (INR Mn) EBITDA (INR Mn) & Margin (%) PBT (INR Mn) & Margin (%) PAT* (INR Mn) & Margin (%) 31.9% 35.6% 25.3% 16.0% 1,553 1,620 19.1% 12.5% 576 410 496 259 297 194 38.1% 33.5% 4.3% 16.1% Q4FY17 Q4FY18 Q4FY17 Q4FY18 Q4FY17 Q4FY18 Q4
Slide 17: Consolidated Revenue Mix
Consolidated Revenue Mix (INR Million) Q4FY18 Q4FY17 FY18 FY17 377 449 485 1,716 1,790 1,635 24% 2,136 29% 31% 29% 30% 27% 777 36% 48% 1,610 1,547 5,940 5,990 456 28% 613 2,088 2,565 40% 35% 43% Advertisement Revenue Distributor Revenue Exhibitor Revenue (INR Mn) Q4FY18 Q4FY17 Growth FY18 FY17 Growt
Slide 18: In-Cinema Advertising Performance
In-Cinema Advertising Performance 17
Slide 19: In-Cinema Advertisement Operating Parameter
In-Cinema Advertisement Operating Parameter in Mn Seats # of UFO Screens Full House Seating 3,897 Capacity – Annualised* 3,745 2,485 2,518 Q4FY17 Q4FY18 Q4FY17 Q4FY18 Top 50 Cities Rest of India FY18 Multiplex Single Multiplex Single # of UFO Screens 458 496 736 2,207 Full House Seating Capacity – 1
Slide 20: In-Cinema Advertisement Revenue Analysis
In-Cinema Advertisement Revenue Analysis INR Million Government + PSU Corporate + Hyperlocal 2,047 1,770 43% 44% 760 449 29% 57% 56% 43% 71% 57% Q4FY17 Q4FY18 FY17 FY18 Q4FY17 Q4FY18 FY17 FY18 Ad Revenue / Screen for the period (Avg) (Rs.) 120,117 193,787 474,597 535,847 Average # of minutes sold /
Slide 21: Repositioned and Retooled Caravan Talkies for Growth
Repositioned and Retooled Caravan Talkies for Growth Caravan Offering in 2016 Caravan ‘Now’ • Conventional branding media for media dark • 360 degree activation market • Brand experience solution Movie screening for footfalls + Customer Research + Brand Activation Impact Improved Realizations & Cost
Slide 22: Theatrical Revenues
UFO digital cinema Theatrical Revenues
Slide 23: Theatrical revenues from Distributors
Theatrical revenues from Distributors E – Cinema - VPF Domestic Revenue (INR Mn) 1,027 978 1,055 1,032 Gross Revenue Net Revenue 243 231 247 241 Q4FY17 Q4FY18 FY17 FY18 D – Cinema - VPF Domestic Revenue (INR Mn) International Revenue (INR Mn) Sunset Impact 662 814 703 Sunset Impact 582 390 271 215 1
Slide 24: Operating Parameter – VPF Revenue India
Operating Parameter – VPF Revenue India # of Screens* Q4FY18 Q4FY17 FY18 FY17 E – Cinema 3,706 3,538 3,706 3,538 D – Cinema 1,616 1,567 1,616 1,567 Total 5,322 5,105 5,322 5,105 # of Screens as on March 31, 2018 VPF Revenue / Screen (Average**) (in Rs.) Q4FY18 Q4FY17 FY18 FY17 E – Cinema Gross 66,43
Slide 25: Operating Parameter – VPF Revenue International
Operating Parameter – VPF Revenue International Number of Screens Q4FY18* Q4FY17 FY18* FY17 Total 416 819 416 819 # of Screens as on March 31, 2018 VPF Revenue / Screen (Average**) (in Rs.) Q4FY18 Q4FY17 FY18 FY17 D – Cinema Gross 125,922 190,793 438,222 778,362 D – Cinema Net 29,583 65,391 135,234
Slide 26: Financial Performance
UFO digital cinema Financial Performance
Slide 27: Consolidated P&L Statement (Ind AS)
Consolidated P&L Statement (Ind AS) (INR Mn) Q4FY18 Q4FY17 Growth FY18 FY17 Growth Revenue from Operations 1,610 1,547 4.1% 5,940 5,990 -0.8% Other Income 10 6 49.7% 30 17 72.4% Total Revenue 1,620 1,553 4.3% 5,970 6,007 -0.6% Total Expenses 1,044 1,057 -1.3% 4,241 4,138 2.5% EBITDA 576 496 16.1% 1,
Slide 28: Consolidated Expenditure Analysis (Ind AS)
Consolidated Expenditure Analysis (Ind AS) Expenses as a % of Total Revenue Q4FY18 Q4FY17 FY18 FY17 1) Total Operating Direct Cost 32.8% 41.9% 41.1% 41.2% Key Operating Direct Cost Components i) Advertisement revenue share payment 10.4% 8.0% 10.9% 8.6% ii) VPF D-Cinema share payment to D-Cinema Exhi
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet Assets Equity and Liability 31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17 (INR Mn) (INR Mn) Equity Non-Current Assets Equity Share Capital 284 276 Property, plant and equipment 2,359 2,585 Other Equity Capital work-in-progress 212 69 Reserves and surplus 4,476 3,777 Other Intang
Slide 30: Major areas impacted due to adoption of Ind AS
Major areas impacted due to adoption of Ind AS Item Treatment under Ind AS Treatment under previous IGAAP Virtual Print Fee Fixed one time VPF from distributors is recognised Fixed one time Virtual print fees received from over estimated life of movie (2 weeks) in the ratio of distributors of the fi
Slide 31: Major areas impacted due to adoption of Ind AS
Major areas impacted due to adoption of Ind AS Item Treatment under Ind AS Treatment under previous IGAAP Investment in Mutual Fund, OCPS, Such investments are measured at fair value and Such investments are measured at cost. CCPS, Warrants mark to market difference is recognised in P & L. Business
Slide 32: Consolidated P&L Ind AS Adjustments
Consolidated P&L Ind AS Adjustments Q4FY17 Ind AS Q4FY17 FY17 Ind AS FY17 (INR Mn) IGAAP Adjustments Ind AS IGAAP Adjustments Ind AS Revenue from Operations 1,549 (2) 1,547 5,972 18 5,990 Other Income 7 (1) 6 17 0 17 Total Revenue 1,556 (3) 1,553 5,989 18 6,007 Total Expenses 1,066 (9) 1,057 4,144 (
Slide 33: Reconciliation of Profits for Previous Periods
Reconciliation of Profits for Previous Periods (INR Mn) Q4FY17 FY17 Net profit attributable to shareholders under IGAAP 195 632 Impact on account of: Fair value of Financial instruments 5 17 Actuarial (gain)/loss on employee defined benefit plans 3 2 Impact of Business combination accounting - (72)
Slide 34: Reconciliation of Other Equity for Previous Period
Reconciliation of Other Equity for Previous Period (INR Mn) 31-Mar-17 Other Equity under IGAAP 5,507 Impact on account of: Fair value of Financial instruments (1) Actuarial (gain)/loss on employee defined benefit plans (2) Impact of Business combination accounting (1,688) Allocation of losses in sub
Slide 35: Shareholding
Shareholding Marquee Institutional Investors* (% of Total # of shares) March 31, 2018 SBI Mutual Fund Promoters 30.04% Foreign Venture Capital Investors 18.52% Reliance Capital Asset Management Foreign Portfolio Investors 3.57% DSP Blackrock Mutual Funds 21.44% Equinox Partners Insurance Companies 0
Slide 36: About Us
About Us UFO Moviez India Limited UFO Moviez India Limited (BSE Code: 539141; NSE Code: UFO) is India’s largest digital cinema distribution network and in-cinema advertising platform in terms of number of screens. UFO operates India’s largest satellite-based, digital cinema distribution network usin