Ufo Moviez India Ltd. · NSE:UFO
Ufo Moviez India — Q4 FY2016 Earnings Presentation
32 slides from Ufo Moviez India's earnings presentation, May 26, 2016
Slide 1: UFO Digital Cinema – Analyst Presentation Cover Letter
UFO digital cinema Date: May 26, 2016 To, T6; BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5h Floor, Plot No. C/1, G Dalal Street, Block, Bandra Kurla Complex, Bandra Mumbai — 400 001 (East),Mumbai- 400 051 Fax: 022 — 2272 3121 Fax : 022- 2659 8237/
Slide 2: Q4 & FY16 Results Presentation
Q4 & FY16 Results Presentation May 26, 2016 * in terms of number of screens.
Slide 3: 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 4: UFO Moviez at a Glance
UFO Moviez at a Glance India’s Largest Digital Cinema Network and In-Cinema Advertising Platform Indian Film Industry’s Largest India’s Largest In-cinema Content Distribution Highway High Impact Advertising Platform 5,034* 3,713 Digital Screens in India In Cinema Advertising Screens ~2.15 million wi
Slide 5: UFO's Innovative Solution for Analog Cinema Market
UFO’s Innovative Solution for Analog Cinema Market Analog Cinema Era beset with … UFO’s Innovative Solution Issues… Satellite Delivery ‘Solution provider’, not In-cinema Advertising of Cinema ‘Product provider’ proposition Satellite Solution Viewers Pan India movie release End to end technology Conn
Slide 6: Philosophy – Value Creation Across the Value Chain
Philosophy – Value Creation Across the Value Chain Digitization has redefined film economics by enabling pan-India releases on day one and improving viewing experience. Aggregated ad inventory across a fragmented exhibitor base has created a unique ad platform with high effectiveness and reach. UFO
Slide 7: Our Vision
Our Vision Recreating Growth Lever Creating additional UFO customer base in India by providing end-to-end Consulting Phase VII Services to Local Entrepreneur to develop greenfield exhibition centers Leveraging Phase Leveraging on Existing Infrastructure Phase VI to build newer Synergetic Businesses
Slide 8: Shareholder Value Creation
Shareholder Value Creation Initial high capital intensity over; poised to generate higher revenues with lower Capital Intensity incremental capex. Capital Efficiency Network Effect and Operational Efficiencies lead to increasing RoCE. Capital Allocation Intent to grow only in synergistic businesses
Slide 9: Financial and Operating Highlights
Financial and Operating Highlights 7
Slide 10: Financial Highlights – Q4FY16 vs Q4FY15
Financial Highlights – Q4FY16 vs Q4FY15 Consolidated, excluding VDSPL** Total Revenue (INR Mn) EBITDA (INR Mn) & Margin (%) PBT (INR Mn) & Margin (%) PAT* (INR Mn) & Margin (%) 38.5% 24.8% 14.9% 1,451 33.2% 1,210 559 360 10.3% 14.3% 216 402 173 125 19.9% 39.0% 108.3% 72.6% Q4FY15 Q4FY16 Q4FY15 Q4FY1
Slide 11: Financial Highlights – FY16 vs FY15
Financial Highlights – FY16 vs FY15 Consolidated, excluding VDSPL Total Revenue (INR Mn) EBITDA (INR Mn) & Margin (%) PBT (INR Mn) & Margin (%) PAT* (INR Mn) & Margin (%) 5,671 33.7% 33.8% 19.1% 13.0% 4,783 14.5% 1,918 10.3% 1,082 1,613 736 694 494 18.6% 19.0% 56.0% 49.1% FY15 FY16 FY15 FY16 FY15 FY
Slide 12: Driving Wide Spread Release of Movies on UFO Network
Driving Wide Spread Release of Movies on UFO Network Top 10 Hindi Top 10 Telugu Release # of Release # of Movie Movie Date Screens Date Screens 22-Jan AIRLIFT 2,298 15-Jan NAANNAKU PREMATHO 852 5-Feb GHAYAL ONCE AGAIN 2,214 15-Jan NBKs 99TH FILM (DICTATOR) 639 4-Mar JAI GANGAAJAL 2,156 15-Jan SOGGAD
Slide 13: Driving Wide Spread Release of Movies on UFO Network
Driving Wide Spread Release of Movies on UFO Network Top 10 Gujarati Top 10 Kannada Release # of Release # of Movie Movie Date Screens Date Screens 1-Jan HUTUTUTU AAVI RAMAT NI RUTU 198 29-Jan VIRAAT 197 15-Jan ROMANCE COMPLICATED 164 1-Jan KILLING VEERAPPAN 190 12-Feb POLAM POL 130 12-Feb SHIVALING
Slide 14: Consolidated Revenue Mix
Consolidated Revenue Mix (INR Million) Q4FY16 Q4FY15 FY16 FY15 311 300 1,167 466 307 1,578 1,533 1,179 21% 25% 24% 32% 25% 28% 27% 25% 1,461 1,219 5,701 4,785 684 612 2,589 2,439 47% 50% 45% 51% Exhibitor Revenue Distributor Revenue Advertisement Revenue (INR Million) Q4FY16 Q4FY15 Growth FY16 FY15
Slide 15: In Cinema Advertising Performance
In Cinema Advertising Performance 13
Slide 16: In Cinema Advertisement Operating Parameter
In Cinema Advertisement Operating Parameter in Million Seats # of UFO Screens Full House Seating Capacity – Annualised* 3,784 3,713 2,673 2,557 Q4FY15 Q4FY16 Q4FY15 Q4FY16 Top 50 Cities Rest of India FY16 Multiplex Single Multiplex Single # of UFO Screens 359 493 498 2,363 *Full House Seating Capaci
Slide 17: Advertisement Revenue Analysis
Advertisement Revenue Analysis INR Million Government + PSU Corporate + Caravan 1,578 1,167 48% 46% 466 300 33% 52% 54% 37% 63% 67% Q4FY15 Q4FY16 FY15 FY16 In Cinema Advertisement Q4FY16 Q4FY15 FY16 FY15 Ad Revenue / Screen for the period (Avg) (Rs.) 121,402 79,466 410,275 316,346 Average # of minut
Slide 18: Theatrical Revenues
UFO a digital cinema Theatrical Revenues
Slide 19: Theatrical revenues from Distributors
Theatrical revenues from Distributors E – Cinema - VPF Domestic Revenue (INR Million) 989 962 Gross Revenue 894 882 Net Revenue 226 223 249 240 Q4FY15 Q4FY16 FY15 FY16 D – Cinema - VPF Domestic Revenue (INR Million) International Revenue (INR Million) 863 857 683 616 649 614 245 208 219 210 184 159
Slide 20: Operating Parameter – VPF Revenue India
Operating Parameter – VPF Revenue India # of Screens Q4FY16 Q4FY15 FY16 FY15 E – Cinema 3,544 3,554 3,544 3,554 D – Cinema 1,490 1,478 1,490 1,478 Total 5,034 5,032 5,034 5,032 # of Screens as on March 31, 2016 VPF Revenue / Screen (Average**) (in Rs.) Q4FY16 Q4FY15 FY16 FY15 E – Cinema Gross 70,252
Slide 21: Operating Parameter – VPF Revenue International
Operating Parameter – VPF Revenue International Number of Screens Q4FY16 Q4FY15 FY16 FY15 Total 881 837 881 837 # of Screens as on March 31, 2016 VPF Revenue / Screen (Average**) (in Rs.) Q4FY16 Q4FY15 FY16 FY15 D – Cinema Gross 198,492 189,652 795,360 750,764 D – Cinema Net 63,417 65,340 254,735 25
Slide 22: Progress of Caravan Talkies
Progress of Caravan Talkies 91 Caravans were operational during the quarter in 91 Districts in 6 States Capex towards Caravan Talkies expansion stood at Rs. 178 million in FY16 Caravan revenues gradually gaining momentum • Advertisement revenues during FY16 stood at Rs. 40.4 million Outlook • Carava
Slide 23: Financial Performance
UFO a digital cinema Financial Performance
Slide 24: Consolidated Results
Consolidated Results (INR Million) Q4FY16 Q4FY15 Growth FY16 FY15 Growth Revenue from Operations 1,461 1,219 19.9% 5,701 4,785 19.1% Other Income 6 2 165.9% 20 8 143.7% Total Revenue 1,467 1,221 20.1% 5,721 4,793 19.4% Total Expenses 936 823 13.7% 3,873 3,185 21.6% EBITDA 531 398 33.4% 1,848 1,608 1
Slide 25: Consolidated Expenditure Analysis
Consolidated Expenditure Analysis Expenses as a % of Total Revenue Q4FY16 Q4FY15 FY16 FY15 1) Total Operating Direct Cost 36.7% 42.2% 42.4% 40.0% Key Operating Direct Cost Components i) Advertisement revenue share payment 8.7% 8.7% 8.2% 8.2% ii) VPF D-Cinema share payment to D-Cinema Exhibitors 12.9
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet Equity and Liability Assets 31-Mar-16 31-Mar-15 31-Mar-16 31-Mar-15 (INR Million) (INR Million) Shareholder’s Funds Non-Current Assets Equity Share Capital 275 259 Fixed Assets 2,991 3,159 Reserves and Surplus 4,890 4,274 Goodwill on Consolidation 1,721 1,683 Total of Shar
Slide 27: Core Business Financial Performance
Core Business Financial Performance Reconciliation to EBITDA excluding VDSPL** (INR Million) Q4FY16 Q4FY15 Growth FY16 FY15 Growth Reported EBITDA 531 398 33.4% 1,848 1,608 14.9% Margin 36.2% 32.6% 32.3% 33.6% Adding VDSPL losses 28 5 70 5 EBITDA excluding VDSPL 559 402 39.0% 1,918 1,613 19.0% Margi
Slide 28: Financial Highlights – 5 Years
Financial Highlights – 5 Years Total Revenue (INR Million) EBITDA (INR Million) & Margin (%) 5,721 33.6% 32.3% 31.7% 31.3% 4,793 4,250 25.2% 1,848 1,608 3,375 1,332 1,069 2,077 523 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 PBT (INR Million) & Margin (%) PAT* (INR Million) & Margin (%) 11.2%
Slide 29: Advertisement Revenue – 5 Years
Advertisement Revenue – 5 Years INR Million Government + PSU Corporate + Retail + Caravan 1,578 FY12 – FY16 1,167 Revenue CAGR 44% 48% 999 46% 695 41% 19% 370 52% 18% 81% 59% 54% 82% FY12 FY13 FY14 FY15 FY16 # of Screens with Ad Rights 2,647 3,071 3,592 3,784 3,713 Annual Ad Revenue / Screen (Avg) 1
Slide 30: Key Financial Parameters
Key Financial Parameters RoCE (%) RoE (%) 17.63% 12.83% 13.09% 14.34% 11.49% 12.66% 10.10% 12.01% 4.51% 2.06% FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Net Debt* (INR Million) Net Debt / EBITDA (X) 1,108 0.83 0.65 691 507 0.46 0.32 242 24 0.01 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY1
Slide 31: Shareholding
Shareholding Marquee Institutional Investors* (% of Total # of shares) March 31, 2016 SBI Mutual Fund Promoters 28.97% Reliance Capital Asset Management Foreign Venture Capital Investors 19.10% Wellington International Management FII 6.87% Max Life Insurance DII 15.52% Corporate Bodies 6.10% Grandeu
Slide 32: 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