Prime Focus Limited · NSE:PFOCUS
Prime Focus — Investor Presentation (January 2018)
28 slides from Prime Focus's investor presentation, January 2018
Slide 1: Prime Focus Limited Corporate Presentation
Prime Focus Limited Corporate Presentation January 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: Group Overview
Group Overview
Slide 4: Group Snapshot
Group Snapshot Overview Segmental 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 provider of cutting edge Visu
Slide 5: 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 6: 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 2,260 2.7 X M&E clients across the globe; robust (In Rs cr) organic growth post acquisitions Globalisation and Integration initiatives People 4
Slide 7: 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 Corporat
Slide 8: 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 @ 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 Conversion
Slide 9: 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 US$250 mn 6,500+ 77% Higher (FY17), personnel c
Slide 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 $1,400 Feature Animation 12.9 12.3 4,000 11.7 11.1 TV VFX 10.
Slide 16: OTT Market Opportunity: Major Driver of Growth
OTT Market Opportunity: Major Driver of Growth Total content spend by main OTT providers OTT total, original, addressable content and estimated OTT VFX spend 24.6 24.6 0.4 1.5 3.7 US$ 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 17: '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 18: 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 2,260 563 400 370 2,178 600 30% 501 350 323 00 1,901 500 25% 1,608 348 300 884 1,383 25% 400 187 23% 20% 250 00 191 1,034 236 2
Slide 19: 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 13.7 bn 2.4x FY13 FY14* FY15 FY16** FY17 Sep-17 Interest Cost <10% on the back of higher share of Foreign currency loans As on 30th March, 2013 As on 30th September, 2018 Overseas Overseas debt debt,
Slide 20: Working with Tier I Hollywood franchisees and Studios
Working with Tier I Hollywood franchisees and Studios Significantly higher visibility for the businesses – combined Order Book US$450mn+ Release Date TBC Animated Feature Film (TBA) November 2018 Fantastic Beasts and Where to Find Them 2 July 2018 Mission Impossible 6 June 2018 Ant-Man 2 June 2018 D
Slide 21: Best in Class Leadership Team
Best in Class Leadership Team NAMIT MALHOTRA RAMKI SANKARANARAYANAN VIKAS RATHEE Founder, Executive Chairman and Global CEO Founder & CEO, Prime Focus Technologies Group CFO Prime Focus Managing Director, Prime Focus Prime Focus MATTHEW HOLBORN ALEX HOPE MERZIN TAVARIA Co-founder & CEO Co-founder an
Slide 22: Backed by Award winning creative talent
Backed by Award winning creative talent 8 Oscars 6 Oscars winners 3 Oscar winning shows 2 Oscars in the last 2 years (2015 and 2016) Corporate Presentation
Slide 23: Annexures
Annexures
Slide 24: Consolidated Profit & Loss Statement. Year end Mar 17
Consolidated Profit & Loss Statement. Year end Mar 17 Quarter Quarter Quarter 12M 12M % YoY % QoQ Particulars (Rs Cr) ending ending ending ending ending Y-o-Y Variance Variance Mar'17 Mar'16 Dec'16 Mar'17 Mar'16 Net sales / income from operations 654 466 40% 507 29% 2,154 1,901 13% Other Income 5 12
Slide 25: Consolidated Profit & Loss Statement.. Quarterly FY18
Consolidated Profit & Loss Statement.. Quarterly FY18 % YoY % QoQ % YoY Particulars (Rs Cr) Q2FY18 Q2FY17 Q1FY18 6M FY18 6M FY17 Variance Variance Variance Net sales / income from operations 547 467 17% 514 7% 1,061 993 7% Other Income 7 17 NM 9 -24% 15 18 -19% Operating Foreign exchange gain 15 - -
Slide 26: Balance Sheet
Balance Sheet Standalone Consolidated Particulars (Rs Cr) March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Assets Non-current Assets Property, Plant and Equipment 389 403 730 801 Capital Work In Progress 1 0 3 1 Goodwill 972 970 Other intangible assets 3 3 546 551 Intangible assets under
Slide 27: Balance Sheet
Balance Sheet Standalone Consolidated Particulars (Rs Cr) March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Equity Equity Share Capital 30 30 30 30 Other Equity 1,067 1,078 527 378 Equity attibutable to equity holders of the parent 1,097 1,108 556 408 Non-controlling Interest - - 114 70 To
Slide 28: 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),