Prime Focus Limited · NSE:PFOCUS
Prime Focus — Q1 FY21 Earnings Presentation
28 slides from Prime Focus's earnings presentation, Sep 15, 2020
Slide 1: Cover letter to stock exchanges
BANGALORE BEIJING CAPE TOWN CHANDIGARH DELHI GOA HYDERABAD JOHANNESBURG KOLKATA LONDON LOS ANGELES MUMBAI NEW YORK SINGAPORE TORONTO VANCOUVER September 15, 2020 To, To, The National Stock Exchange of India Limited BSE Limited Listing Department, Listing Department, Exchange Plaza, Bandra Kurla Comp
Slide 2: Investor Presentation September 2020
Investor Presentation September 2020
Slide 3: 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 4: Contents
Contents 1 Q1 FY21 Performance … 4-12 2 About Prime Focus … 13-23 3 Annexures … 24-27
Slide 5: Q1 FY21 Performance
Q1 FY21 Performance
Slide 6: Q1FY21 highlights - Resilient performance despite Covid19 disruptions
Q1FY21 highlights - Resilient performance despite Covid19 disruptions Consolidated Change YoY Income -10.5% Rs. 608 Cr YoY ‘Westworld Season 3’ and ‘Devs’ nominated for Best VFX at 72nd Emmy Awards – Major contribution from DNEG 1% India, FMS Divisional 9% Revenue Tech/Tech Enabled Services share 90
Slide 7: Cost Optimization led to PAT positive quarter (2nd in a row)
Q1FY21 – Cost Optimization led to PAT positive quarter (2nd in a row) Revenue Adjusted EBITDA1 679 608 200 29.4% 35.0% -10.5% 180 160 58.4% 30.0% YoY 140 YoY 179 25.0% 120 16.7% 20.0% 100 80 113 15.0% 60 10.0% 40 5.0% 20 - 0.0% Q1FY20 Q1FY21 Q1FY20 Q1FY21 Figures in Rs Crore; Consolidated financials
Slide 8: Creative Services shows resilience; higher EBITDA despite lower revenue
Creative Services shows resilience; higher EBITDA despite lower revenue Stable Revenues despite Covid Headwinds Revenues1 Strong execution pipeline of projects in Film VFX, TV/OTT and Animation backed by credible studios led to limited Covid disruption on the revenue front. With shoots -4.6% expec
Slide 9: Working on top Hollywood projects
Working on top Hollywood projects Upcoming Movie Projects Upcoming TV Projects Aug-20 Dec-20 Sep -20 2020 Dune Tenet Riviera Season 3 Away Aug- 20 Sep- 20 July- 20 Aug- 20 Cursed The New Mutants Wonder Woman 1984 Strike: Lethal White 8 8 Investor Update Q1 FY21
Slide 10: Tech/Tech Enabled Services – Signs of recovery
Tech/Tech Enabled Services – Signs of recovery Revenue 76 Rebound in EBITDA Margins – at ~40% for Q1FY21 60 Covid Impact on revenues has been limited – backed by strong client relations Business turnaround plan accelerated due to Covid headwinds - company has delivered significantly higher margi
Slide 11: India FMS – Heavily Impacted by Covid
India FMS – Heavily Impacted by Covid Revenues Highlights: 39 Delivered revenue of Rs 13 Cr with Adj, EBITDA margin at 25% With relaxation in government imposed restrictions and shoots beginning from August, revenues are expected to bounce back in H2FY21 13 Worked on the Bollywood blockbusters
Slide 12: Top Bollywood Projects
Top Bollywood Projects Upcoming Movie Projects Recent TV Commercials Netflix Kellogs https://www.youtube.com https://www.youtube.com /watch?v=vJlntV2iFEQ /watch?v=0BTVID2lGOg 83 Coolie No 1 Gangubai Kathiawadi Vivo IPL 2020 Google https://www.youtube.com https://www.youtube.com /watch?v=AvTXSeDmho /
Slide 13: Debt profile
Debt profile Consolidated Net Debt of Rs. 3,216 Cr as on 30th Jun’20 o Includes Operating Lease Liability of ~ Rs. 600 Cr added to the Balance Sheet on adoption of IndAS 116 LTM Net Debt / Adj EBITDA lower at ~3.8x levels vs 4.0x as on Mar’20 (ex Operating Lease as per IndAS 116) The Company a
Slide 14: About Prime Focus
About Prime Focus
Slide 15: PFL@ FY20
PFL@ FY20 Delivered creative services in 4 of top 10 global B.O. hits released in FY20 Revenues1 1 Adj. EBITDA2 & EBITDA Margin (%) Robust & growing VES Order Book despite FY16 FY17 FY18 FY19 FY20* For work on 950 28.0% 23.7% 23.0% 3,013 Chernobyl 850 2,645 750 17.6% 20.3% 20.4% 23.0% COVID outbreak
Slide 16: Corporate Structure
Corporate Structure Founders Reliance IDBI Trusteeship Affirma Other 34.9% 10.5% 35.08% 24.5% 21.9% 7.9% (Malhotra Family) Group Services Ltd. Capital Public Prime Focus LTD. (India) Listed on BSE /NSE (Market Cap# Rs 768 cr) 73.75%; 71.3%; 3.5% by Ambit, PFL full diluted rest held by basis manageme
Slide 17: Strong Leadership in all verticals
Strong Leadership in all 3 verticals Tier-1 Visual Effects Creative 5 Player & 30% Market Services Oscars Share in 3D Conversion • Visual Effects, including 3D Conversion and Animation Leader in cloud solutions for Media &Entertainment Tech/Tech industry Enabled • CLEARTM Media ERP Suite • Cloud-bas
Slide 18: Creative Services: World's leading independent Tier 1 player
Creative Services: World’s leading independent Tier 1 player Strong Leadership Proven Expertise 5 Oscar wins for Tier-1 Visual Effects Player House of choice for Inception, Interstellar, visually enhanced Ex Machina, Blade services Runner 2049 & First Man Top Grossers Unprecedented scale 8,000+ 89%
Slide 19: Technology Services: Pioneer & leader in cloud solutions for M&E industry
Technology Services: Pioneer & leader in cloud solutions for M&E industry Owns & operates World’s only Continue to have a robust Strong revenue model with Revenue at Rs. 3.0 bn, 91% Annuity contribution & hybrid cloud enabled Media order book to be executed 9% share in FY20 ERP platform – CLEAR™ ove
Slide 20: CLEAR Media ERP – One Software for the entire M&E Enterprise
CLEAR™ Media ERP – One Software for the entire M&E Enterprise Production Create Transform Distribute Marketing Creation Across Supply Chain Broadcast Opportunity to Across Content Lifecycle be Oracle & Across Enterprise SAP for M&E Applications Enterprise Industry Transform Legal Marketing Workflow
Slide 21: India FMS: Dominating on home turf
India FMS: Dominating on home turf Offering complete media services across the spectrum. . Film Equipment Film chemical Editing/Color Film Studios Film Shooting treatment Correction Restoration & image Digital Distribution enhancement 2D to 3D Animation VFX & Animation High Margin in range of 30-40%
Slide 22: Robust financial performance ...
Robust financial performance ... Strong Revenue Growth Strong Growth in Adj. EBITDA Margins Operating profit Revenue 700 23.0% 23.7% 17% CAGR 25.0% Operating Profit 12% CAGR 20.3% 20.5% 30% CAGR 600 17.1% 617 20.0% 500 440 450 3,013 500 544 537 372 2,645 400 348 353 501 15.0% 2,178 2,314 400 350 300
Slide 23: .. and continued focus on leverage
.. and continued focus on leverage Reported Net Debt / EBITDA Net Debt – Rs 25 bn 5.7x 4.3x 4.4x 3.0x 4.3x 4.0x 2.4x FY14 FY15 FY16 FY17 FY18 FY19 FY20* Interest cost <10% on the back of higher share of foreign currency loans As on 30th March, 2013 As on 31st Mar, 2020 Proportion of $ linked debt Ov
Slide 24: Annexure
Annexure
Slide 25: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement % YoY % QoQ Particulars (Rs Crores) Q1FY21 Q1FY20 Q4FY20 Variance Variance Net sales / income from operations 605 677 -11% 905 -33% Other Income 3 2 41% 8 -59% Total Income 608 679 -10% 913 -33% Total Expenditure 429 566 -24% 679 -37% Personnel Cost (including te
Slide 26: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement % YoY % QoQ Particulars (Rs Crores) Q1FY21 Q1FY20 Q4FY20 Variance Variance Net sales / income from operations 7 36 -80% 29 -76% Other Income 6 3 81% 5 7% Total Income 13 39 -68% 34 -63% Total Expenditure 10 26 -63% 18 -48% Personnel Cost (including technician fees)
Slide 27: PFL Shareholding Pattern
PFL Shareholding Pattern As on 30th June 2020 Outstanding shares – 299 mn Others Public, 7.99% IDBI Trusteeship Promoters, 34.96% Services Ltd., 24.49% Affirma Capital, RMW Financial 21.99% Services , 10.57% 26 Investor Update Q1 FY21 26
Slide 28: Contact us
Contact us Alok Gupta Prime Focus Limited Phone: +91 8291070073 Email: alok.gupta@primefocus.com About Prime Focus Limited Prime Focus Limited (PFL), the world’s largest independent integrated media services powerhouse, employs over 9,000 professionals in 18 cities across 5 continents. We provide en