Slide 1: Prime Focus Limited Q3 FY18 Investor Presentation
Prime Focus Limited Q3 FY18 Investor Presentation February 2018
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 Q3 FY18 Performance 04-14 9M FY18 Performance 15-17 About Prime Focus 18-34 Annexure 35-38 Financials 36-37 Shareholding pattern 38
Slide 4: Q3 FY18 Performance
Q3 FY18 Performance
Slide 5: Operational momentum continues in Q3
Operational momentum continues in Q3 Q3FY18 TTM UP 20% Consolidated Rs 6,097 mn Rs 23,614 mn Income UP 18% Adjusted EBITDA* Rs 1,574 mn Rs 5,976 mn UP 28% Margin 25.8% 25.3% Operating Rs 456 mn Rs 1,167 mn UP 87% PBT** Margin 7.5% 5.0% *Adjusted for Non-Cash ESOP & other One time charges ** PBT is b
Slide 6: Robust growth driven by strong operating performance in Creative Services
Robust growth driven by strong operating performance in Creative Services Figures in Rs Million; Consolidated financials Consolidated Income *Adjusted EBITDA / Margin PBT** 6,097 1700 1,574 500 456 8% 25% 450 7% 1500 25.8% 400 7.5% 1,231 6% 5,080 1300 20% 350 5% 1100 24.1% 300 244 250 4% 15% 900 200
Slide 7: Creative Services operating performance is strong
Creative Services operating performance is strong Figures in Rs Million; Consolidated financials Revenue Adjusted EBITDA * / Margin 1400 1,251 30% 4,804 1200 25% 3,837 1000 910 26.0% 20% 800 23.7% 15% 600 10% 400 5% 200 0 0% Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Adjusted EBITDA Margin Delivered movies l
Slide 8: Worked on marquee Hollywood projects
Worked on marquee Hollywood projects Justice League Thor: Ragnarok Altered Carbon The Hurricane Heist The 15:17 to Paris Investor Update Q3 FY18 8
Slide 9: Robust Order book of $250 mn+
Robust Order book of $250 mn+ Pacific Rim: Uprising Mission: Impossible - Fallout Godzilla: King of the Monsters The New Mutants Avengers: Infinity War Fantastic Beasts: The Ant-Man and the Wasp Crimes of Grindelwald Investor Update Q3 FY18 9
Slide 10: Tech/Tech Enabled Services gears up for next growth phase
Tech/Tech Enabled Services gears up for next growth phase Figures in Rs Million; Consolidated financials Revenue Adjusted EBITDA / Margin 233 855 880 250 208 35% 30% 200 25% 150 27.2% 20% 23.6% 15% 100 10% 50 5% 0 0% Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Adjusted EBITDA Margin Unified CLEAR Unified clear
Slide 11: Tech/Tech Enabled Services Operational Highlights
Tech/Tech Enabled Services Operational Highlights Q3 FY18 Revenue Analysis Project ROW 28% 41% Servic Produ ct es India Annuit 52% 48% 59% y 72% By Geography By Contract type By Product Mix Clients like Discovery and Spotify were added during the quarter New contracts signed with existing client
Slide 12: India FMS EBITDA margin continues above 40%
India FMS EBITDA margin continues above 40% Figures in Rs Million; Consolidated financials Revenue Adjusted EBITDA* / Margin 461 455 203 196 43.1% 44.0% Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Adjusted EBITDA Margin Delivered several projects including Qarib Qarib Singlle, Mersal, Amazon Obhijaan, Solo, F
Slide 13: Working with current and upcoming Bollywood films
Working with current and upcoming Bollywood films Movies delivered in Q3 FY18 Strong Order Book TVCs Investor Update Q3 FY18 13
Slide 14: Debt profile
Debt profile Consolidated Net Debt of Rs.14.5bn Increase in Debt primarily on redemption of SCPE NCDs – SCPE NCDs were recorded at Face value of Rs.1bn under Ind-AS; redemption value of Rs.1.9bn Right sizing the Balance Sheet; continued efforts towards reduction in Interest cost with more Doll
Slide 15: 9M FY18 Performance
9M FY18 Performance
Slide 16: 9M FY18 demonstrates continued profitable growth
9M FY18 demonstrates continued profitable growth Figures in Rs Million; Consolidated financials Consolidated Income *Adjusted EBITDA / Margin Operating PBT** 17,025 4800 4,135 800 5% 25% 669 15,192 4300 700 3.9% 4% 3800 4% 3,172 24.3% 20% 600 3300 3% 500 2800 3% 400 15% 2% 2300 20.9% 300 1800 2% 200
Slide 17: 9M FY18: Business wise Analysis
9M FY18: Business wise Analysis Division-wise revenues 13,297 9M FY17 9M FY18 11,480 2,575 2,567 16% 1,328 1,330 YoY Creative Services Tech / Tech Enabled Services India FMS Division-wise Operating EBITDA * Division-wise Operating EBITDA * Margins 3,143 9M FY17 9M FY18 Creative Services Tech / Tech
Slide 18: About Prime Focus
About Prime Focus
Slide 19: Group Snapshot
Group Snapshot All figures in Rs Cr Overview Divisional Contribution FY 17 India FMS; • Publically listed on BSE and NSE with a Market Cap of 7% Technology Rs 3,500 cr; Recognized on ‘Fortune India Next 500’ list Services; • Top Tier Independent global Media Services 16% powerhouse • Leading provide
Slide 20: Corporate structure
Corporate structure Malhotra Reliance Group SCPE Other Public Family 35.0% 35.1% 22.0% 7.9% Promoter has recently announced infusion of Rs 330 cr through Warrants at PFL at Rs.106 per share. The proceeds are largely expected to be used to pay off Debt; Proforma Prime Focus LTD. (India) holding of ~4
Slide 21: Prime Focus has transformed into a Global Leader
Prime Focus has transformed into a Global Leader FY14 TTM ‘17 Delivering performance as guided Consolidated Bundled high-end services for biggest Income 835 2,361 2.8 X M&E clients across the globe; robust (In Rs cr) organic growth post acquisitions Globalisation and Integration initiatives People 4
Slide 22: Key Investment Highlights
Key Investment Highlights 1 Leading Independent, Integrated M&E Services Player 2 Huge Market opportunity with Proven Tailwinds Global Delivery Model Enabling Rapid Scaling And 3 High Profitability 4 Strong Financial Performance with Sustainable Growth 5 Best-in-Class Senior Management Team Investor
Slide 23: PFL - one of the world's largest independent & integrated media services players
PFL - one of the world’s largest independent & integrated media services players US$500mn conglomerate growing @ 30% FY(13-17), 80%+ revenue from overseas. . . Tier-1 Visual Effects Player & 30% Market Creative Share in 3D Services 3 Oscars Conversion (77%*) • Visual Effects, including 3D Conversion
Slide 24: Creative Svs: World's No. 1 independent Tier 1 player
Creative Svs: World’s No. 1 independent Tier 1 player Strong Leadership Proven Expertise 3 Oscar wins for Tier-1 Visual Effects House of choice Interstellar, Player for visually Ex Machina & enhanced Inception services Top Grossers Unprecedented scale US$250 mn 6,500+ 77% Higher (FY17), personnel co
Slide 25: Proliferation of Premium Content is Driving Demand for premium VFX services
Proliferation of Premium Content is Driving Demand for premium VFX services VFX heavy movies have been drawing a higher proportion of movie Production budgets by volume as well as value Despite average production budgets flattening, VFX spends have continued to increase CG driven spectacle Inc
Slide 26: 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 27: 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 Across Content Lifecycle to be Oracle Across Enterprise & SAP for Applications Enterprise M&E Industry Transform Legal Marketing Workflow
Slide 28: Technology Services: Pioneer & leader in cloud solutions for M&E industry
Technology Services: 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 pla
Slide 29: 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 30: Huge untapped addressable market for both the key businesses
Huge untapped addressable market for both the key businesses Digital content solutions – VFX - $5.3+ BN market opportunity A $11 billion market opportunity 5,500 Total Addressable market in (US$ Bn) to grow at CAGR 5% 5,000 Film VFX 4,500 $1,400 Feature Animation 12.9 12.3 4,000 11.7 11.1 TV VFX 10.
Slide 31: OTT Market Opportunity: Major Driver of Growth
OTT Market Opportunity: Major Driver of Growth Total content spend by main OTT providers OTT total, original, addressable content and estimated OTT VFX spend 24.6 24.6 0.4 1.5 3.7 US$ Bn US$ Bn 12.6 6.6 12.6 0.2 11.5 2.0 3.5 7.0 12.4 6.9 2.0 1.4 1.3 0.2 2016 2020F 2016 2020F Netflix Amazon Hulu Appl
Slide 32: 'WorldSourcing' model = unmatched competitive edge
‘WorldSourcing’ model = unmatched competitive edge Global network providing highest quality, fastest time to market & most efficient pricing India (Mumbai, Kolkata, Noida, Hyderabad, Chandigarh, Bengaluru, Canada Chennai and Goa) • Over 600 employees MONTREAL • Over 7,000 skilled for VFX and 3D empl
Slide 33: Robust financial performance (in INR cr)
Robust financial performance (in INR cr) ... Strong Revenue Growth Strong Growth in EBITDA Margins Cash Profit Revenue 30% CAGR EBITDA EBITDA Margin 30% CAGR Cash Profit 00 2,361 364 2,178 700 30% 400 598 350 323 00 1,901 600 501 25% 1,608 326 300 1,383 500 25% 835 184 23% 20% 250 00 400 191 1,034 2
Slide 34: .. And significant improvement in Leverage
.. And significant improvement in Leverage Net Debt / EBITDA 5.7x 4.3x 4.4x 3.8x Net Debt – 2.4x Rs 14.5 bn 2.4x FY13 FY14* FY15 FY16** FY17 Dec-17 Interest Cost <10% on the back of higher share of Foreign currency loans As on 30th March, 2013 As on 31th Dec, 2017 Overseas Oversea debt s debt; 37% 5
Slide 35: Annexure
Annexure
Slide 36: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Million) Q3FY18 Q3FY17 Q2FY18 9M FY18 9M FY17 Variance Variance Variance Net sales / income from operations 6,096 5,072 20% 5,473 11% 16,704 14,999 11% Total Expenditure 4,823 3,849 25% 4,265 13% 13,190 12,019 10% Personnel Cost
Slide 37: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Million) Q3FY18 Q3FY17 Q2FY18 9M FY18 9M FY17 Variance Variance Variance Net sales / income from operations 355 386 -8% 396 -10% 1,099 1,202 -9% Total Expenditure 259 258 0% 271 -5% 785 751 5% Personnel Cost (including technician f
Slide 38: PFL Shareholding Pattern
PFL Shareholding Pattern As on 31st December- 2017 Outstanding shares – 299 mn Others Public; 7.95% SCPE; Promoters; 22.00% 34.95% RMW Financial Services ; 35.08% Investor Update Q3 FY18 38
Slide 39: Contact us
Contact us Alok Gupta Nitesh Kumar/ Seema Shukla Prime Focus Limited Four-S Services Pvt Ltd Phone: +91 8291070073 Phone: +91 98915 70250/+91 124 Email: alok.gupta@primefocus.com 4251442 Email: nitesh.kumar@four-s.com seema@four-s.com www.primefocus.com © 2016 Prime Focus Limited. All Rights Reserve
Slide 40: 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),