Slide 1: Investor Presentation November 2018
Investor Presentation November 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
Contents 1 H1FY19 Performance … 5-13 2 Q2FY19 Performance … 14-15 3 About Prime Focus … 16-26 4 Annexures … 27-32
Slide 4: H1FY19 Performance
H1FY19 Performance
Slide 5: Delivers steady growth in revenues led by Creative Services
Delivers steady growth in revenues led by Creative Services H1FY19 Delivered creative services in 3 of top 5 global B.O. hits released in H1FY19 Consolidated Income Rank Movie Name Collection DNEG 14.9% in $ mn Rs. 1,256 Cr YoY 1 Avengers: Infinity War 2,046 Y 2 Jurassic World: Fallen Kingdom 1,304
Slide 6: H1FY19 - Consolidated revenue up by 14.9% YoY
H1FY19 - Consolidated revenue up by 14.9% YoY Revenue Adjusted EBITDA1 Revenue contribution India, 1,256 FMS, 1,093 6.4% 256 197 200 35.0% 14.9% 180 Tech/Tech 30.0% YoY 160 25.0% Enabled 140 120 20.0% Services, 100 80 23.4% 15.0% 12.0% 60 10.0% 40 15.7% 5.0% 20 - 0.0% Creative Services, H1FY18 H1FY1
Slide 7: H1FY19 - Creative Services: Continues to build on momentum
H1FY19 - Creative Services: Continues to build on momentum Revenue 1,050 Revenue up 23.6%YoY to reach Rs 1,050 Cr in H1FY19 849 ▪ Continued broad basing in revenues with higher share coming from OTT / TV 23.6% & Feature Animation YoY ▪ Revenues from new geographies further bolstering growth ▪ Delive
Slide 8: Working on top Hollywood projects
Working on top Hollywood projects Top movies for H1FY19 Upcoming Hollywood releases for FY19 16 Nov 2018 Nov 2018 05 Oct 2018 2 Nov 2018 02 Sep 14 $790+ mn $620+ mn The Nutcracker and Venom Fantastic Beasts: The Bohemian Rhapsody the Four Realms Crimes of Grindelwald 2018 19 Oct 2018 12 Oct 2018 Dec
Slide 9: H1FY19 - Tech/Tech Enabled Services
H1FY19 - Tech/Tech Enabled Services Revenue Revenue declined to Rs.154 Cr in H1. Order book remains 169 steady: 154 ▪ Soft quarter for Revenue and EBITDA for the Tech business ▪ Witnessing headwinds as the lead time on conversion of some of the marquee RFPs in Western markets continues to be longer
Slide 10: Tech/Tech Enabled Services Operational Highlights
Tech/Tech Enabled Services Operational Highlights Quality of Revenue – Q2 FY 19 Project Rest of Based World 25% Product 35% Services 48% India Annuity 52% 65% 75% By Geography By Contract type By Product Mix New Business Deals: APAC ▪ Technology and Media services: STAR Dubbing Contract put to execu
Slide 11: H1FY19 - India FMS Revenue stable and margins maintained at 30%+
H1FY19 - India FMS Revenue stable and margins maintained at 30%+ Revenue Highlights: 88 82 ▪ Stable revenues at Rs 82 Cr with EBITDA margin at 30.2% in H1FY19 ▪ Worked on the recently released Thugs of Hindostan and other Bollywood super-hits like Dhadak, Satyamev Jayate & Stree among other movies l
Slide 12: Indian Film and Media Services continues to remain strong
Indian Film and Media Services continues to remain strong Top Releases for upcoming quarters Recent TV Commercials Nutralite Tata Capital Renault Kwid Orient LED SBI Life Mumbai Traffic Police 12 Investor Update Q2 FY19 12
Slide 13: Debt profile
Debt profile ▪ Consolidated Net Debt of Rs.1,969cr as on 30th Sept, 2018; Consolidated Net Debt comprises of $182mn in Dollar linked debt and Rs.651cr of Rupee Debt as on 30th Sept, 2018; Debt in INR terms impacted significantly on account of Rupee depreciation – from 68.30 Rs./$ in Q1 to 72.33 Rs./
Slide 14: Q2FY19 Performance
Q2FY19 Performance
Slide 15: Q2FY19: Business wise analysis
Q2FY19: Business wise analysis Division-wise revenues 522 Q2FY18 Q2FY19 443 18% YoY 87 75 45 40 Creative Services Tech / Tech Enabled Services India FMS Division-wise Adjusted EBITDA * Division-wise Adjusted EBITDA * Margins 107 Creative Services Tech / Tech Enabled Services India FMS Q2FY18 Q2FY19
Slide 16: About Prime Focus
About Prime Focus
Slide 17: World's largest independent & integrated media services powerhouse
World’s largest independent & integrated media services powerhouse Rs 2,292 cr 24.6% FY13-FY18 Rs 544 cr xx% 23.7% FY18 Revenue Revenue CAGR FY18 Adjusted EBITDA* FY18 PAT Margin Adj. EBITDA Margin 9,000+ PFL Minds 18 cities in 5 continents Creative Services 78% Technology 15% India FMS 7% 3 rd Osca
Slide 18: Strong leadership in all three verticals
Strong leadership in all three verticals Tier-1 Visual Effects Creative Player & 30% Market Services 4 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
Slide 19: Corporate Structure
Corporate Structure Founders Reliance Standard Other 34.97% 35.08% 22.0% 7.95% (Malhotra Family) Group Chartered PE Public 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 holding
Slide 20: Creative Services: World's No. 1 independent Tier 1 player
Creative Services: World’s No. 1 independent Tier 1 player Strong Leadership Proven Expertise 4 Oscar wins for Tier-1 Visual Effects Player House of choice for Inception, Interstellar, visually enhanced Ex Machina & Blade services Runner 2049 Top Grossers Unprecedented scale 78% US$282 mn 6,000+ con
Slide 21: 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 Strong revenue model with Robust order book of $230 Robust growth in revenue, hybrid cloud enabled Media 78% Annuity contribution & mn+ to be executed over up 10.5x at Rs. 3.5 bn in ERP platform –
Slide 22: 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 Enterprise SAP for M&E Applications Industry Transform Legal Marketing Workflow
Slide 23: 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 24: 'World Sourcing' model = unmatched competitive edge
‘World Sourcing’ model = unmatched competitive edge Global network providing highest quality, fastest time to market & most efficient pricing India (Mumbai, Kolkata, Noida, Hyderabad, Chandigarh, Bengaluru, Chennai and Goa) Canada • Over 7,000 skilled employees • Over 600 employees for MONTREAL • Ap
Slide 25: Robust financial performance ...
Robust financial performance ... All absolute figures in Rs. crores Strong Revenue Growth Strong Growth in EBITDA Margins Operating profit Revenue 24.6% CAGR EBITDA EBITDA Margin 25.5% CAGR Operating Profit 11.3% CAGR 2,500 - 12mth numbers 2,292 350 323 326 2,178 600 544 25.0% 1,901 501 300 2,000 50
Slide 26: .. and significant improvement in leverage
.. and significant improvement in leverage Net Debt / EBITDA 5.7x Net Debt – Rs 15.4 bn 4.3x 4.4x 3.8x 2.4x 3.0x FY13 FY14* FY15 FY16** FY17 FY18 Interest cost <10% on the back of higher share of foreign currency loans As on 31th March, 2013 As on 31th March, 2018 Proportion of $ linked debt Oversea
Slide 27: Annexure
Annexure
Slide 28: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Cr) Q2FY19 Q2FY18 Q1FY18 H1FY19 H1FY18 Variance Variance Variance Net sales / income from operations 611 562 9% 624 -2% 1,235 1,078 15% Other Income 7 6 4% 14 -52% 21 15 39% Total Income 618 569 9% 638 -3% 1,256 1,093 15% Total E
Slide 29: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement % YoY % QoQ % YoY Particulars (Rs Cr) Q2FY19 Q2FY18 Q1FY19 H1FY19 H1FY18 Variance Variance Variance Net sales / income from operations 36 40 -9% 34 5% 70 74 -5% Other income 3 12 -71% 8 -56% 11 12 -5% Total Income 39 51 -23% 42 -7% 82 86 -5% Total Expenditure 32 53
Slide 30: Balance Sheet (Assets)
Balance Sheet (Assets) Standalone Consolidated Particulars (Rs. Cr) 30-Sep-18 30-Sep-17 30-Sep-18 30-Sep-17 Assets Non-Current Assets Property, Plant and Equipment 380 382 623 714 Capital Work In Progress 5 2 14 3 Goodwill - - 1,061 981 Other Intangible assets 2 3 638 523 Intangible Assets under dev
Slide 31: Balance Sheet (Liabilities)
Balance Sheet (Liabilities) Standalone Consolidated Particulars (Rs. Cr) 30-Sep-18 30-Sep-17 30-Sep-18 30-Sep-17 Equity and Liabilities . Equity Equity Share Capital 30 30 30 30 Share warrant money received 83 - 83 - Other Equity 977 1,053 413 563 Equity attributable to equity holders of the parent
Slide 32: PFL Shareholding Pattern
PFL Shareholding Pattern As on 30th September - 2018 Outstanding shares – 299 mn Others Public, 7.95% SCPE, 22.00% Promoters, 34.97% RMW Financial Services , 35.08% 32 Investor Update Q2 FY19 32
Slide 33: 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 4251442 Email: alok.gupta@primefocus.com Email: nitesh.kumar@four-s.com seema@four-s.com www.primefocus.com © 2016 Prime Focus Limited. All Rights Reserve
Slide 34: 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 18 cities across 5 continents and 7 time zones. We provide end-to-end creative services (visual effects, stereo 3D conversion and animation),