Slide 1: Prime Focus Limited Q2 FY18 Investor Presentation
Prime Focus Limited Q2 FY18 Investor Presentation November 2017
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 Page
Contents Page Q2 FY18 Performance 04-14 6M FY18 Performance 15-17 About Prime Focus 18-28 Annexure 29-33 Financials 29-33 Shareholding pattern 33
Slide 4: Q2 FY18 Performance
Q2 FY18 Performance
Slide 5: Q2FY18: Best September quarter in PFL history
Best September quarter in PFL History Robust Revenue growth & significantly higher profitability Adjusted EBITDA* Consolidated Income /Margin PAT / Margin 5,686 1,421 / 25.0% 219 / 3.8% Q2FY18 18% 54% NM 4,837 924 / 19.1% (395) / (8.2%) Adjusted Consolidated Income Net Debt/EBITDA EBITDA*/Margin Sep
Slide 6: Robust quarter driven by growth in Creative Services
Robust quarter driven by growth in Creative Services with increased delivery from cost advantageous locations Figures in Rs Million; Consolidated financials Consolidated Income *Adjusted EBITDA / Margin PAT 5,686 1500 1,421 9% 400 25% 1300 300 219 25.0% 200 4% 4,837 20% 1100 924 100 3.8% -1% 0 900 1
Slide 7: Creative Services EBITDA Margin increases to 24%
Creative Services EBITDA Margin increases to 24% Figures in Rs Million; Consolidated financials Revenue Adjusted EBITDA / Margin 4,428 1200 1,065 30% 3,519 1000 25% 800 24.1% 20% 600 568 15% 16.1% 26% YoY 400 88% YoY 10% 200 5% 0 0% Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Adjusted EBITDA Margin ▪ Best Septe
Slide 8: Worked on marquee Hollywood projects
Worked on marquee Hollywood projects Final Portrait Blade Runner Dunkirk Geostorm 2049 American Assassin Final Portrait Investor Update Q2 FY18 8
Slide 9: Robust Order book of $250 mn+
Robust Order book of $250 mn+ Justice League Pacific Rim: Uprising M:I 6 - Mission Impossible Godzilla: King of Monsters The New Mutants Avengers: Infinity War Fantastic Beasts and Ant-Man and the Wasp Where to Find Them 2 Investor Update Q2 FY18 9
Slide 10: Tech/Tech Enabled Services sustain 25%+ EBITDA Margin
Tech/Tech Enabled Services sustain 25%+ EBITDA Margin Figures in Rs Million; Consolidated financials Revenue Adjusted EBITDA / Margin 907 868 300 255 35% 250 240 30% 25% 200 28.1% 27.6% 20% 150 15% 100 10% 50 5% 0 0% Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Adjusted EBITDA Margin ▪ EBITDA Margin at 27.6%, co
Slide 11: Tech/Tech Enabled Services Operational Highlights
Tech/Tech Enabled Services Operational Highlights Q2 FY18 Revenue Analysis Project ROW 29% Produ 40% ct 45% India Annuity Services 60% 71% 55% By Geography By Contract type By Product Mix Clients update: ▪ In International markets added clients like Take 5 Productions, Nordisk, TERN International an
Slide 12: India FMS sustains EBITDA margin ~40%
India FMS sustains EBITDA margin ~ 40%, bracing macro headwinds Figures in Rs Million; Consolidated financials Revenue Adjusted EBITDA* / Margin 250 60% 445 453 194 200 181 50% 40% 150 43.6% 39.9% 30% 100 20% 50 10% 0 0% Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Adjusted EBITDA Margin ▪ Delivered several marq
Slide 13: Working with current and upcoming Bollywood films
Working with current and upcoming Bollywood films Movies delivered in Q2 FY18 Strong Order Book TVCs Investor Update Q2 FY18 13
Slide 14: Debt profile
Debt profile ▪ Consolidated Net Debt at Rs 13.69 bn ▪ Successfully Redeemed Non-Convertible Debentures amounting Rs 1.9 bn to Standard Chartered Private Equity ahead of time ▪ Right sizing the Balance Sheet; continued efforts towards reduction in Interest cost with more Dollar based loans ▪ Net Debt
Slide 15: 6M FY18 Performance
6M FY18 Performance
Slide 16: 6M FY18 reports significantly higher profitability
6M FY18 reports significantly higher profitability Figures in Rs Million; Consolidated financials Consolidated Income *Adjusted EBITDA / Margin PAT** 2800 2,560 450 10,928 25% 350 249 6% 10,112 2300 250 1,941 23.4% 20% 1% 150 1800 2.3% 50 15% -50 -4% 8% YoY 1300 32% YoY -3.2% 19.2% -150 10% -250 -9%
Slide 17: 6M FY18: Business wise Analysis
6M FY18: Business wise Analysis Segment-wise revenues 8,470 6M FY17 6M FY18 7,571 1,748 1,690 12% 868 878 YoY Creative Services Tech / Tech Enabled Services India FMS Segment-wise Operating EBITDA Segment-wise Operating EBITDA Margins 1,869 6M FY17 6M FY18 Creative Services Tech / Tech Enabled Servi
Slide 18: About Prime Focus
About Prime Focus
Slide 19: PFL - one of the world's largest independent & integrated media services players
PFL - one of the world’s largest independent & integrated media services players Rs 21.5 bn conglomerate growing @ 23% FY(12-17), 80%+ revenue from overseas. . . Tier-1 Visual Effects Player & 30% Market Creative Share in 3D Services 2 Oscars Conversion (77%*) • Visual Effects, including 3D Conversi
Slide 20: Creative Svs: World's No. 1 independent Tier 1 player
Creative Svs: World’s No. 1 independent Tier 1 player Strong Leadership Proven Expertise 2 consecutive Tier-1 Visual Effects House of choice Oscar wins for Player for visually Interstellar & enhanced Ex Machina services Top Grossers Unprecedented scale Rs 16.7 bn 6,500+ 77% Higher visibility (FY17),
Slide 21: Market opportunity: Huge untapped opportunity
Market opportunity: Huge untapped opportunity and growing rapidly! VFX segments already serviced by PFW 5,500 5,000 Film VFX Over US$3.2 Bn market already being serviced, being a 4,500 $1,400 Tier 1 player in the market dominated by Top 4 players Feature Animation 4,000 TV VFX 3,500 $900 Netflix, Am
Slide 22: Key demand drivers for Creative Services
Key demand drivers for Creative Services Demand for Technology-Enabled Digital Content • Top Hollywood as well as International movies performing on box office are increasingly reliant on digital content to serve consumer demand • 59% of the movies made over 2014-17 (Aug) were VFX heavy movies, repr
Slide 23: PFT: Pioneer & leader in cloud solutions for M&E industry
PFT: Pioneer & leader in cloud solutions for M&E industry Owns & operates Strong revenue model Robust order book of Robust growth in World’s only hybrid with 74% Annuity $200 mn to be revenue, up 10.3x cloud enabled Media contribution & 35% executed over next at Rs. 3.4 mn in ERP platform – from Int
Slide 24: Tech/Tech Enabled Services servicing Marquee Clients
Tech/Tech Enabled Services servicing Marquee Clients PFT in numbers Over 1.5 million hours of Content Over 200k of new TV 4 Workflow Patents in US Under Management episodes a year Over 70% of Prime 100,000 hours of Powered over 1.8 Time shows in content digitized million concurrent Hollywood use ann
Slide 25: India FMS: Dominating on home turf
India FMS: Dominating on home turf Offering complete media services across the spectrum. . Film Film Film Film Editing/Color Studios Equipment Shooting chemical Correction treatment Restoration & Digital 2D to 3D Animation VFX & Animation image Distribution enhancement Leading player in fast Owns In
Slide 26: Robust financial performance
Robust financial performance. . . Revenue Business wise Contribution 21,781 India FMS, 7% 16,076 Tech/Tech 13,828 Enabled 10,814 services , 16% 7,719 7,622 Creative Services, 77% FY12 FY13 FY14* FY15 FY16** FY17 * FY14 & FY16 financials represent 15 & 9 months respectively EBITDA Cash Profit (PAT +D
Slide 27: FY17: Business wise Analysis
FY17: Business wise Analysis Business-wise revenues 16,712 12M ending Mar'16 12M ending Mar'17 14,237 17% YoY 2,964 15% 3,413 YoY 1,544 1,545 Creative Services Tech / Tech Enabled Services India FMS Business-wise Adjusted EBITDA 3,482 12M ending Mar'16 12M ending Mar'17 2,205 796 898 13% 588 523 58%
Slide 28: 'WorldSourcing' model = unmatched competitive edge
‘WorldSourcing’ model = unmatched competitive edge Global network providing highest quality, fastest time to market & most efficient pricing 5 continents | 7 time zones | 19 locations | 24/7 – 365 days Investor Update Q2 FY18 28
Slide 29: Annexure
Annexure
Slide 30: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Million) Q2FY18 Q2FY17 Q1FY18 6M FY18 6M FY17 Variance Variance Variance Net sales / income from operations 5,473 4,665 17% 5,135 7% 10,608 9,927 7% Other Income 65 NM 85 -24% 150 184 -19% Operating Foreign exchange gain 149 172
Slide 31: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement As at Sept 30, As at March As at Sept As at March 31, Particulars Particulars 2017 31, 2017 30, 2017 2017 EQUITY AND LIABILITIES ASSETS Equity 1. Non-current assets (a) Equity share capital 299 299 (a) Property, plant and equipment 7,140 7,298 (b) Other equity 5,
Slide 32: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Million) Q2FY18 Q2FY17 Q1FY18 6M FY18 6M FY17 Variance Variance Variance Net sales / income from operations 396 420 -6% 348 14% 744 815 -9% Operating Foreign exchange gain 15 13 Other Income 42 25 66% 77 -46% 119 52 126% Total Reve
Slide 33: PFL Shareholding Pattern
PFL Shareholding Pattern As on 30th September- 2017 Outstanding shares – 299mn Others Public, 7.9% Promoters, SCPE, 35.0% 22.0% RMW Financial Services , 35.1% Investor Update Q2 FY18 33
Slide 34: Contact us
Contact us Alok Gupta Nisha Kakran/ Seema Shukla Prime Focus Limited Four-S Services Pvt Ltd Phone: +91 8291070073 Phone: +91 7718811182/+91 124 4251442 Email: alok.gupta@primefocus.com Email: nisha.kakran@four-s.com seema@four-s.com www.primefocus.com © 2016 Prime Focus Limited. All Rights Reserved
Slide 35: 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 19 cities across 5 continents and 7 time zones. We provide end-to-end creative services (visual effects, stereo 3D conversion and animation),