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INOX R-City Ghatkopar Mumbai
INVESTOR PRESENTATIONNov 2017
2
Introducing the ‘THEATRE OF DREAMS’…INOX INSIGNIA at Atria Mall, Worli Mumbai
• Theatres with opulent recliners• Personalized ticketing and butler-on-call• Gourmet Menu curated by Celebrity Chef Vicky Ratnani• Staff Uniforms crafted by Arjun Khanna
• Live food counter serving gourmet delights • A new level of luxury paired with bespoke
interiors• Laser projection with Dolby Atmos Sound
and 3D powered by Volfoni systems
Disclaimer
3
This presentation and the following discussion may contain “forward looking statements” by Inox Leisure Limited (“ILL” or “the
Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future
state of affairs, results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs,
assumptions, expectations, estimates, and projections of the management of ILL about the business, industry and markets in which
ILL operates.
These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and
other factors, some of which are beyond ILL’s control and difficult to predict, that could cause actual results, performance or
achievements to differ materially from those in the forward looking statements.
Such statements are not, and should not be construed, as a representation as to future performance or achievements of ILL. In
particular, such statements should not be regarded as a projection of future performance of ILL. It should be noted that the actual
performance or achievements of ILL may vary significantly from such statements.
4
I N D U S T R Y O V E R V I E W
C O M P A N Y O V E R V I E W
C O M P E T I T I V E A D V A N T A G E & O U T L O O K
Q 2 F Y 1 8 R E S U L T U P D A T E
Discussion Summary
A N N E X U R E
• P E R S C R E E N E C O N O M I C S
• S H A R E H O L D I N G S T R U C T U R E
• D E T A I L E D F I N A N C I A L S
5
INDUSTRY OVERVIEW
Strong Fundamentals & Huge Growth Potential
6
1,602
745554 476
279 324 241 204 182 166
India China Japan US France UK Germany S. Korea Spain Italy
125
95 80
60 57 40
26 25 16 12 10 8
US France Spain UK Germany South Korea Japan Taiwan China Thailand Brazil India
2,178 1,930
1,364
208 197 176 171 169 156 146
China India US France Mexico UK Japan S. Korea Germany Russia
2nd Highest Number Of Theatre Footfalls in the World
Footfalls in Million
Highest Number of Film Releases in the World
However, India’s Screen Density is One of the Lowest
Screens / Million population
Source: CRISIL Report, FICCI Whitepaper on Screen Density in India
Steady Performance and Resilience
7
85.1 93.4 93.5 101.4 99.8 106.6 111.8 117.9 124.2 131.2
112.4125.3 126.4
138.1 142.4155.0
166.0178.2
191.6206.6
0
50
100
150
200
250
2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E
Domestic Theatrical Overseas Theatrical Home Video Cable & Satellite Rights Ancilliary Revenue Streams
75.7% 74.5% 74.0% 73.4% 70.1% 68.8% 67.4% 66.2% 64.8% 63.5%
2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E
% Share of Domestic Theatricals in Total Film Industry Revenues
In Rs. Billion
CAGR 6.1%
CAGR 7.7%
Indian Film Industry Displays Steady Performance Trends
Domestic Theatricals Continue to Remain the Major Revenue Contributor
Source: FICCI-KPMG 2017 Report
Multiplexes Witnessing Rapid Growth
8
FACTORS DRIVING GROWTH IN
MULTIPLEXES:
Superior location, destination and
parking facilities.
State of art equipment (high quality
video and audio), superior interiors,
ambience and service.
Multiple screens in one location offer a
wider variety of content to the patrons.
Further, different screen sizes provide
programming flexibility. This results in
higher occupancy ratios.
Strong demographics, rising disposable
incomes and discretionary spends.
Source: CRISIL Report, FICCI-KMPG Report 2017, Industry Sources
M u l t i p l e x e s c u r r e n t l y a c c o u n t f o r ~ 3 0 % m a r k e t s h a r e o f t h e s c r e e n s ,
h o w e v e r t h e y a c c o u n t f o r m o r e t h a n 4 0 % o f b o x o f f i c e
c o l l e c t i o n s
Number of Screens
9,3
08
9,1
21
8,6
85
8,4
51
8,0
02
6,0
00
6,0
00
6,0
00
1,0
75
1,2
25
1,3
50
1,5
00
1,6
30
2,1
34
2,2
25
2,4
71
-
1,00 0
2,00 0
3,00 0
4,00 0
5,00 0
6,00 0
7,00 0
8,00 0
9,00 0
10,0 00
2010 2011 2012 2013 2014 2015 2016 Oct-17
Single Screens Multiplexes
Increasing Number Of INR 1bn + Movies
9
1,000 1,598
2,065 2,101 2,638 3,014
3,446 3,359
5,200 4,500
5,300
6,500
3 Idiots(2009)
Dabaang(2010)
Bodyguard(2011)
Ek Tha Tiger(2012)
Dabaang 2(2012)
ChennaiExpress(2013)
Dhoom 3(2013)
Kick(2014)
P.K(2014)
BajrangiBhaijaan(2015)
Dangal(2016)
Bahubali 2 -The
Conclusion(2017)
12
5
96 7
5 6 7
1
22
22 1
2008 2009 2010 2011 2012 2013 2014 2015 2016 Jan-17 to Oct-17
INR 1 BN + INR 2 BN +
Wider Screen Releases
Higher Number Of INR 1 Bn + Movies
INCREASING NUMBER OF
MOVIES ARE GENERATING
MORE THAN RS 1 BN IN
NET BOX OFFICE COLLECTIONS
DRIVEN BY
WIDER SCREEN RELEASES
AND
IMPROVING CONTENT QUALITY
Source: Industry
10
Company Overview
Track Record of Aggressive Expansion
11
8 12
25
35
51
76
91
11
9
23
9
25
7
27
9
31
0
37
2
42
0
46
8
48
1
2 3 6 9 1422 26 32
63 68 72 7996
107118 120
-50
-30
-10
10
30
50
70
90
110
130
0
100
200
300
400
500
600FY
03
FY0
4
FY0
5
FY0
6
FY0
7
FY0
8
FY0
9
FY1
0
FY1
1
FY1
2
FY1
3
FY1
4
FY1
5
FY1
6
FY1
7
Oct
-17
Screens Properties
Note: Includes Acquisition of Calcutta Cine Pvt. Ltd. in FY07, Fame India Ltd. in FY11 and Satyam Cineplexes Ltd. in FY15
ON AN AVERAGE ADDITION OF 3 SCREENS EVERY MONTH OVER THE LAST DECADE
PAN India Presence
12
KERALA |1 Property | 6 Screens
19States
58Cities
120Properties
481Screens
119,342Seats
JHARKHAND | 1 Property | 4 Screens
WEST BENGAL | 14 Properties | 55 Screens
ODISHA | 1 Property | 3 Screens
CHHATTISGARH | 2 Properties | 8 Screens
TELANGANA | 2 Properties | 11 Screens
ANDHRA PRADESH | 7 Properties | 28 ScreensKARNATAKA |10 Properties | 40 Screens
GOA | 4 Properties | 14 Screens
MAHARASHTRA | 26 Properties | 114 Screens
GUJARAT | 16 Properties | 67 Screens
MADHYA PRADESH | 4 Properties | 16 Screens
RAJASTHAN | 13 Properties | 43 Screens
HARYANA | 5 Properties | 16 Screens
TAMIL NADU | 3 Properties | 14 Screens
UTTAR PRADESH | 5 Properties | 21 Screens
DELHI | 4 Properties | 13 Screens
PUNJAB | 1 Property | 6 Screens
Assam | 1 Property | 2 Screens
ONE OF THE LARGEST MULTIPLEX CHAIN OPERATOR IN INDIA
* Includes 8 management properties with 29 screens and 7,370 seats
13
Key Marquee Propert ies
Marquee Properties – Atria Mall Worli Mumbai
14
15
16
CR2 Nariman Point, Mumbai
17
18
19
INSIGNIA – LUXURY MOVIE WATCHING EXPERIENCE
20
21
22
23
24
25
Financial Summary
26
9.4%
11.5%
6.1%
14.9%
7.3%5.7%
10.3%
3.8%
16.8%
5.7%
FY13 FY14 FY15 FY16 FY17
ROCE % ROE %
663.2 762.8
895.4
1,160.6 1,220.7
FY13 FY14 FY15 FY16 FY17
98.0 122.0 122.7
189.1 146.1
14.8% 16.0% 13.7% 16.3% 12.0%
FY13 FY14 FY15 FY16 FY17
EBITDA EBITDA Margin %
18.5
36.9 20.0
81.0
30.6
2.8%4.8%
2.2%7.0%
2.5%
FY13 FY14 FY15 FY16 FY17
PAT PAT Margin %
281.0 242.2 241.2 267.0 317.0
324.6 390.9 676.2 522.3 552.5
0.8 0.6
0.3 0.4 0.5
FY13 FY14 FY15 FY16 FY17
Equity Debt Net Debt to Equity
68.9% 64.3% 61.6% 61.4% 61.3%
21.4% 21.3% 21.3% 22.9% 23.3%
4.9% 6.5% 9.1% 7.8% 7.9%
4.9% 7.9% 8.0% 7.8% 7.6%
FY13 FY14 FY15 FY16 FY17
NBOC F & B Advertising Others
Financial Summary is as per IGAAP for FY13 to FY15 and as per IND-AS for FY16 and FY17.Revenues for FY13 to FY15 are shown net of entertainment tax, consistent with the revenues under IND-AS for FY16 and FY17
ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed [(Capital Employed = Equity + Total Debt)Net Debt = Total Debt – Cash –Bank – Liquid MF Investments
REVENUES EBITDA PAT
REVENUES - SEGMENT BREAKUP LEVERAGE ANALYSIS RETURN METRICS
All figures in INR Crs., unless specified
Operational Summary
27Note: All the above charts exclude managed properties.
Footfalls & Occupancy Rate
353 386 411534 537
28% 28% 25% 29% 28%
FY13 FY14 FY15 FY16 FY17
Footfalls (Lakhs) Occupancy (%)
Average Ticket Price (ATP) (Rs)
160156
164
170
178
FY13 FY14 FY15 FY16 FY17
F & B – Spend Per Head (SPH) (Rs)
47 4955 58 62
FY13 FY14 FY15 FY16 FY17
F & B – Net Contribution (%)
70.0% 71.3%74.1% 75.0% 76.0%
FY13 FY14 FY15 FY16 FY17
13.7
18.5
25.1 24.6 22.0
FY13 FY14 FY15 FY16 FY17
ADV REV PER Operating Screen (Rs Lakhs)
13.7
22.5 21.9 19.2
23.0
FY13 FY14 FY15 FY16 FY17
OTHER REV Per Operating Screen (Rs Lakhs)
Operational Summary
28
Film Distributor Share (%)
44.3% 44.3% 43.8% 43.9% 44.4%
36.2% 36.4% 35.9% 34.6% 35.0%
FY13 FY14 FY15 FY16 FY17
Distributor Share on NBOC Distributor Share on GBOC
NBOC (Net Box Office Collections) GBOC (Gross Box Office Collections)
Other Overheads Per Operating Screen (Rs Lakhs)
18.1 18.5 20.3 20.1 21.2
39.3 40.2 41.3 44.0 45.6
35.4 39.2 40.8 45.5 42.9
39.8 40.4 43.447.5 52.7
FY13 FY14 FY15 FY16 FY17
Employee Benefits Lease Rental & Hire Charges
CAM, Power & Fuel, R&M Other Overheads
157.0138.3 145.8
132.5162.5
Operational Summary is as per IGAAP for FY13 to FY15 and as per IND-AS for FY16 and FY17
29
Competitive Advantage• R e c o g n i s e d A n d T r u s t e d C o r p o r a t e G r o u p• W e l l D i v e r s i f i e d P r e s e n c e A c r o s s I n d i a• S t r o n g N e w S c r e e n s P i p e l i n e• S t r o n g B r a n d P a r t n e r s h i p s• U n d e r - l e v e r a g e d B a l a n c e S h e e t W i t h F u r t h e r S c o p e F o r D i l u t i o n• S t a t e O f T h e A r t T e c h n o l o g y , U n m a t c h e d S e r v i c e A n d A m b i e n c e
Recognised & Trusted Corporate Group
30
90 Year track record of consistent business growth
USD $3 Billion Inox Group diversified across 7 different
businesses
10,000+ employees at 150+ business units across India
Distribution network spread over 50+ countries
L i s t e d C o m p a n i e s O t h e r K e y C o m p a n i e s
Inox LeisureLimited
Largest producer (by volume) of chloromethanes, refrigerants and Polytetrafluoroe-thylene in India
Inox Air Products Private Limited
50:50 joint venture with Air Products Inc., USA
Manufacturer of industrial gases in India
36 plants spread throughout the country
Engaged in the business of setting up and operating of wind farms
233 MW operational capacity located across 3 Indian states
One of the largest multiplex chains in India
In the business of setting up, operating and managing a national chain of multiplexes under the brand name ‘INOX’
Present in 58 cities with 120 multiplexes and 481 screens
Gujarat FluorochemicalsLimited
Manufacturer of cryogenic liquid storage and transport tanks in India
Offers comprehensive solutions in cryogenic storage, vaporization and distribution engineering
Has operations in India, USA, Canada, Netherlands and Brazil
Inox India PrivateLimited
Inox RenewablesLimited
One of the largest manufactures of Wind Turbine Generators (WTG) in India
Manufacturers of key components of WTG, Power
300 MW Order Book from diversified customers including large IPPs, Utilities, PSUs, Corporates and Retail
Inox Wind LimitedInox FMCG
Private Limited
Launched in January 2016, it is focussed on FMCG business encompassing F&B and non-F&B categories.
INOX FMCG products branded as “Inox Muchos” are retailed through Modern Trade, General Trade and HORECA Institutions.
Well Diversified Presence Across India
31
East, 19
West, 50
North, 28
South, 23East, 9
West, 20North, 17
South, 12
East, 72
West, 211
North, 99
South, 99East, 18,805
West, 52,190
North, 25,173
South, 23,174
Well DiversifiedDistribution of
Multiplexesacross India
Access toWide Variety of
Regional Content
Lower Dependencyon Hindi and English
Content
Includes 8 management properties with 29 screens and 7,370 seats
120 Properties 58 cities
481 Screens 119,342 Seats
Strong New Screens Pipeline
32
Properties Screens Seats
Properties Properties Screens Seats FY17 118 468 118,285
Pune Heritage (Opened 26th Apr17) 1 4 662 Additions - Apr17 to Oct17 3 14 2,052
Greater Noida Omaxe (Opened 14th Jul17) 1 5 1,223 Expected - Nov17 to Mar17 7 31 6,493
Mumbai Atria (Opened 21st Oct17) 1 5 167 FY18** 127 512 125,835
Kolhapur 1 4 870 Additions Post FY18 85 515 94,777
Coimbatore 1 9 2,088 Leading to 212 1,027 220,612
Cuttack 1 4 846
Nadiad 1 3 649
Navi Mumbai 1 4 779
Gurgaon 1 3 619
Surat (Existing Property) 0 1 30
Bhubaneswar 1 3 612 Total 10 45 8,545
FY18 Pipeline
** Note;• 612 seats and 1 screen reduced as Bengaluru Shankarnag was closed
due to Completion of the Lease Tenure• 112 seats reduced in Bharuch Bluechip in Gujarat due to conversion
into recliner seats• 51 seats reduced in Malleshwaram, Bengaluru due to renovation• 220 seats reduced in Metro, Mumbai due to renovation
STRONG VISIBILITY FROM NEW SCREENS PIPELINE BACKED BY SIGNED AGREEMENTS
Strong Brand Presence
FMCG Ecommerce & TelecomBFSIConsumer DurablesMedia OthersAutomobiles Media FMCG Consumer Durables BFSI Ecommerce & Telecom Others.
Unleveraged Balance Sheet
34
Potential To Grow Aggressively Without Any
Significant Stress On Balance Sheet
Low Leverage Net D/E:
Treasury Stock in Inox Benefit Trust Current Market Price
Promoters Stake
Strong Balance Sheet
• Calculated on Trailing 12 Months Basis• ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed (Capital Employed = Equity + Total Debt)
* Share price As of 6th Nov 2017
Particulars (INR Crs.) Sep-17 Mar-17
Share Capital 96.2 96.2
Other Equity 533.5 489.0
Interest in Inox Benefit Trust, at cost (32.7) (32.7)
Total Shareholder funds 597.0 552.5
Non-Controlling Interest 0.01 0.01
Total Equity 597.0 552.5
Total Debt 307.0 317.0
Other Non-Current Liabilities 93.3 96.0
Total Sources of Funds 997.4 965.5
Fixed Assets 771.9 765.3
Other Non-Current Assets 277.7 273.5
Current Assets 101.8 81.8
Cash & Cash Equivalents 85.8 23.5
Less: Current Liabilities 239.9 178.5 Net Current Assets (52.2) (73.3)
Total Assets 997.4 965.5
Key Balance sheet Ratios Sep-17 Mar-17
Net Debt : Equity 0.4 0.5
Return on Equity (ROE) 8.3% 5.7%
Return on Capital Employed (ROCE) 10.5% 7.3%
0.4x
48.7%
Real Estate on Balance Sheet
INR 350 Crs.
114 INR Crs.*
State of the Art Technology, Unmatched Service & Ambience
35
Focus on technology:
ILL is the first multiplex chain to implement SAP HANA with all integrated functions
Focus on ensuring transparency with regulatory agencies and distributors through daily performance analysis reports
The Network Operations Centre (NOC) in Mumbai enables continuous monitoring, control and reporting of information on all digital
systems across the country. Advertisers can track their advertisement screening at various multiplexes on real-time basis leading to
improved transparency and higher advertising revenues for ILL
ILL have signed the single largest deal with IMAX in India to provide truly encaptivating and completely immersive viewing experience
Focus on high quality video and audio:
ILL owns the high quality DCI Compliant 2K & 4K Digital Projection Systems across all the screens in India
High-definition picture quality, strong 3D capabilities and high frame rate (HFR) (can go up to 60 fps)
ILL has been one of the early adopters of Dolby ATMOS sound technology. Excellent acoustic systems and distortion free sound
Focus on service and ambience:
Focus on providing world class ambience.
ILL with its in-app F&B ordering and Qbuster service, is able to considerably reduce its queue size and transaction time
Emphasis on safety, comfort and convenience
Focus On Strong Technology, Unmatched Service And Ambience
Focus On Technology
Focus on high quality video and audio:
Focus on service and ambience:
Content – Oct 2017
36
Blade Runner 2049
Release Date: 6th October 2017Cast: Ryan Gosling, Harrison FordDirector: Denis VilleneuveBanner: Warner Bros. Pictures
Chef
Release Date:6th October 2017
Cast: Saif Ali KhanDirector: Raja Krishna MenonBanner: T-Series
Secret Superstar
Release Date:19th October 2017Cast: Aamir KhanDirector: AdvaitChandanBanner: AamirKhan Productions
Golmaal Again
Release Date: 20th October 2017Cast: Ajay Devgan, Kareena Kapoor, Tusshar Kapoor, Arshad WarsiDirector: RohitShettyBanner: Phantom Films
Mersal
Release Date: 18th October 2017Cast: Vijay, Samantha, KajalDirector: Atlee KumarBanner: ThenandalStudio Ltd.
Geostorm (3D IMAX)
Release Date: 27th October 2017Cast: Gerard Butler, Abbie Cornish, Ed HarrisDirector: Dean DevlinBanner: Warner Bros., SkydanceMedia, Electric Entertainment
37
Content Pipeline – Nov 2017
Ittefaq
Release Date: 3rd November 2017Cast: SiddharthMalhotra, AkshayKhanna, Sonakshi SinhaDirector: Abhay ChopraBanner: Red ChilliesEntertainment, BR Films, Dharma Productions
Thor Ragnarok (3D IMAX)
Release Date: 3rd November 2017Cast: Chris Hemsworth, Benedict Cumberbatch, Idris Elba, Jaimie AlexanderDirector: Taika WaititiBanner: Marvel Studios
Qarib Qarib Single
Release Date: 10th November 2017Cast: Irfan Khan, Parvathy Thirovithu, Bijendra Kala, Neha DhupiaDirector: TanujaChandraBanner: Zee Studios
Shaadi Mein ZaroorAana
Release Date: 10th November 2017Cast: Rajkumar Rao, Kirti Kharbanda, GovindNamdevDirector: Vinod BachchanBanner: SoundaryaProduction
Tumhari Sulu
Release Date: 17th November 2017Cast: Vidhya BalanDirector: Suresh TriveniBanner: T-Series, Ellipsis Entertainment
Justice League (3D IMAX)
Release Date: 17th November 2017Cast: Gal Gadot, Jason Momoa, Amber Heard, Henry Cavill, Ben Affleck, Amy AdamsDirector: Zack SnyderBanner: DC Films, RatPacEntertainment, Atlas Entertainment, Cruel and Unusual Films
38
Content Pipeline – Dec 2017
Padmavati
Release Date: 1st December 2017Cast: DeepikaPadukone, RanveerSinghDirector: Sanjay Leela BhansaliBanner: BhansaliProductions
Parmanu - The Story Of Pokhran
Release Date: 8th December 2017Cast: John Abraham, Boman Irani, Diana PentyDirector: Abhishek SharmaBanner: KriArjEntertainment, J A Entertainment, KYTA Productions, Zee Studios
Fukrey Returns
Release Date: 8th December 2017Cast: Richa Chadha, Pulkit Samrat, Ali Fazal, Varun SharmaDirector: MrigdeepSingh LambaBanner: Excel Entertainment
Star Wars : Episode VIII - The Last Jedi ( 3D IMAX)
Release Date: 15th December 2017Cast: Benecio Del Toro, Carrie Fisher, Adam Driver, Andy SerkisDirector: Rian JohnsonBanner: Lucasfilm Ltd.
Tiger Zinda Hai
Release Date: 22nd December 2017Cast: Salman Khan, Katrina KaifDirector: Ali Abbas ZaffarBanner: Yash Raj Films
Jumanji (3D IMAX)
Release Date: 22nd December 2017Cast: Dwayne Johnson, Jack Black, Kevin Hart, Tom HollandDirector: Jake KasdanBanner: Columbia Pictures, Matt TolmachProductions, Radar Pictures, Seven Bucks Productions
39
Content Pipeline – Jan 2018
Insidious Chapter 4
Release Date: 5th January 2018Cast: Spencer Locke, Josh Stewart, Bruce DavinsonDirector: Adam RobitelBanner: BlumhouseProductions, Stage 6 Films
Bharat Ane Nenu
Release Date: 11th January 2018Cast: Mahesh Babu, Kiara AdvaniDirector: KoratalaSivaBanner: DVV Entertainments
Sonu Ke Titu Ki Sweety
Release Date:12th January 2018Cast: Karthik Aaryan, Nusrat Bharucha, Sunny Singh NajjarDirector: Luv RanjanBanner: T-Series, Luv Films
Thaana SerndhaKootam
Release Date:12th January 2018Cast: Surya, KeerthySureshDirector: VighneshShivanBanner: Studio Green
Padman
Release Date: 26th January 2018Cast: Akshay Kumar, Sonam Kapoor, Radhika ApteDirector: R BalkiBanner: MrsFunnybones Movies
Downsizing
Release Date:12th January 2018Cast: Kristen Wiig, Matt Damon, Cristoph WaltzDirector: Alexander Payne Banner: Ad Hominem Enterprises
Atria Mall Worli Mumbai
40
Q2FY18 Results Update
Q2 & H1FY18 Result Highlights
41
Q2 FY18 YoY Comparison
297.4
311.3
290 .0
295 .0
300 .0
305 .0
310 .0
315 .0
Q2FY17 Q2FY18
27.2 44.4
9.1%
14.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
Q2FY17 Q2FY18
EBITDA EBITDA Margin
1.6 11.7 0.5%
3.8%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Q2FY17 Q2FY18
PAT PAT Margin
Revenue from Operations EBITDA PAT
H1 FY18 YoY Comparison
5% 63% 643%
Revenue from Operations EBITDA PAT
Note: EBITDA excludes Other Income (non-operating)
10% 35% 65%
634.3
698.7
600 .0
620 .0
640 .0
660 .0
680 .0
700 .0
720 .0
H1FY17 H1FY18
89.3 120.3
14.1%17.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
-
20.0
40.0
60.0
80.0
100 .0
120 .0
140 .0
H1FY17 H1FY18
EBITDA EBITDA Margin
26.5 43.8
4.2%
6.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
H1FY17 H1FY18
PAT PAT Margin
All figures in INR Crs., unless specified
42
Q2 & H1FY18 Results Analysis – Revenue Break Up Analysis
179.4 185.6
70.2 67.1
23.8 32.124.0
26.4297.4
311.3
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Q2FY17 Q2FY18
392.9 424.8
150.8155.2
45.165.545.4
53.1634.3
698.7
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
H1FY17 H1FY18
%Share Q2FY17 Q2FY18 H1FY17 H1FY18
Net Box Office 60.3% 59.6% 61.9% 60.8%
Net Food & Beverage 23.6% 21.5% 23.8% 22.2%
Advertisement 8.0% 10.3% 7.1% 9.4%
Other Operating Revenues 8.1% 8.5% 7.2% 7.6%
10.3%
34.7%
-4.4%
3.5%
16.9%
45.1%
2.9%
8.1%
Q2 FY18 YoY Comparison H1 FY18 YoY Comparison
All figures in INR Crs., unless specified
43
Q2FY18 Results Analysis – Top 5 Movies in INOX
TOP 5 Movies in INOX
GBOC – Gross Box Office Collection
Top 5 films accounted for 30% of Q2 FY18 GBOC revenues (51% in Q2 FY17)
Q2FY18Toilet
Ek Prem KathaSpiderman
HomecomingJab Harry Met
SejalJagga Jasoos Mubarakan
Footfalls [Lacs] 12.44 6.23 5.39 6.05 5.61
GBOC [INR Crs.] 24.75 13.11 11.96 11.39 10.33
Q2 & H1FY18 Results Analysis – Key Operational Metrics
44
Overall Footfalls & Occupancy%
127.0 127.5
282.4 285.7
26% 25%29%
28%
3%
8%
13%
18%
23%
28%
33%
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Q2FY17 Q2FY18 H1FY17 H1FY18
Footfalls (Lacs) Occ%
Comparable Properties Footfalls & Occupancy%
124.4 118.4
272.6 259.8
27%25%
29%28%
3%
8%
13%
18%
23%
28%
33%
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Q2FY17 Q2FY18 H1FY17 H1FY18
Footfalls (Lacs) Occ%
183 186 178 190
-
50
100
150
200
250
300
Q2FY17 Q2FY18 H1FY17 H1FY18
184 187 179 191
-
50
100
150
200
250
300
Q2FY17 Q2FY18 H1FY17 H1FY18
Overall Average Ticket Price (ATP) [INR] Comparable Properties Average Ticket Price (ATP) [INR]
Footfalls with Management properties: Q2FY18 – 134.06 lacs, H1FY18 – 302.05lacs
Note: All above charts exclude management properties
0.4% 1.1%
1.3% 6.4%
-4.9% -4.7%
1.7% 6.4%
45
Q2 & H1FY18 Results Analysis – Key Operational Metrics
Spend Per Head (SPH) [INR] Food & Beverages – Net Contribution (%)
Advertisement Revenue [INR Crs.] Other Operating Revenue [INR Crs.]
65 65 63 65
-
10
20
30
40
50
60
70
80
90
100
Q2FY17 Q2FY18 H1FY17 H1FY18
73.9% 75.0% 75.7% 76.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Q2FY17 Q2FY18 H1FY17 H1FY18
23.8 32.1
45.1
65.5
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
Q2FY17 Q2FY18 H1FY17 H1FY18
24.0 26.4
45.4 53.1
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Q2FY17 Q2FY18 H1FY17 H1FY18
3.3%
34.7% 45.1% 10.3% 16.9%
46
Q2 & H1FY18 Results Analysis – Key Operational Metrics
Film Distributor Share [%]
46.3% 46.5%44.2% 44.9%
36.2% 36.8% 34.7% 35.5%
0.0 %
10. 0%
20. 0%
30. 0%
40. 0%
50. 0%
60. 0%
70. 0%
Q2FY17 Q2FY18 H1FY17 H1FY18
Distributor Share On NBOC Distributor Share On GBOC
NBOC (Net Box Office Collections) , GBOC (Gross Box Office Collections)
5.5 5.3 10.9 10.6
11.0 11.0
22.7 23.2 10.9 10.8
22.2 23.0
14.0 9.6
26.2 22.7
41.3 36.8
82.1 79.5
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Q2FY17 Q2FY18 H1FY17 H1FY18
Employee Benefits Property Rent & Conducting Fees
CAM, Power & Fuel, R&M Other Overheads
Other Overheads Per Operating Screen (INR Lacs)
-31.0%
-0.4%
0.4%
-2.6%
-13.4%
3.6%
1.8%
-2.5%
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Annexure
INSIGNIA CR2 Nariman PointMumbai
Per Screen Economics
48
Per Screen Economics: (In Rs Lakhs)
ATP (Rs) 178
SPH (Rs) 62
Occupancy (%) 30%
Revenue from Operations 314.0
Net Box Office Revenue (NBOC) 196.1
Food & Beverages 71.7
Advertising Income 23.6
Other Revenues 22.6
Costs:
Distributors' Share @ 44% of NBOC 86.3
Other Exhibition Cost 2.5
Food & Beverages Cost 19.4
Lease Rental & Hire Charges 45.6
CAM, Power & Fuel, R&M 42.9
Employee Benefits Expense (excluding corporate overheads) 13.0
Other Overheads 40.1
EBITDA 64.2
EBITDA Margin % 20.4%
Depreciation 19.2
EBIT 45.0
Gross Capex 250.0
Working Capital 0.0
Capital Employed 250.0
ROCE % 18.0%
Per Screen Economics: (In Rs Lakhs)
Fixed Costs - ~ 57% - 58% of total costs 141.6
Contribution (Sales – Variable costs) 205.8
Breakeven Contribution (to cover fixed costs) 141.6
Breakeven Revenues 216.0
Breakeven NBOC 134.9
Breakeven Occupancy % 21.0%
Per Screen Economics:
% Breakup of Revenues
Net Box Office Collections (NBOC) 62% - 63%
Food & Beverages 23% - 24%
Advertising Income 8% - 9%
Other Income 7% - 8%
Per Screen Economics:
Long term steady occupancy levels of ~ 30% and stable ATP.
Gradually improving share of F&B and advertising revenues.
EBITDA margins per screen of ~ 20% - 21%.
ROCE per screen of ~ 15% - 20%.
Significant scope for improvement in ROCE per screen driven by increasing share of F&B revenues (~ 75% contribution) and advertising revenues (~ 95% contribution) in the future.
Per Screen Economics is as per IND-AS and post GST impact
Shareholding Structure
49
Source: BSE
Public/Others, 14.70%
INOX Benefit Trust, 4.51%
DII, 18.31%
FII, 13.78%
Promoter & Promoter
Group, 48.70%
% Shareholding as of Sep 2017
Source: Company Source: Company
Key Institutional Investors – Sep 2017 % Holding
DSP Blackrock Small MF 6.7%
Reliance MF 3.5%
Birla Sunlife 3.3%
Kuwait Investment Authority Fund 3.0%
Goldman Sachs India Limited 2.6%
Morgan Stanley 2.5%
ICICI Prudential MF 1.7%
Aadi Financial Advisors LLP 1.5%
TATA MF 1.2%
Sundaram MF 1.1%
Source: BSE
Market Data As on 6th Nov 2017
Market Capitalisation (INR Crs.) 2,531
Price (INR) 262.4
No. of Shares Outstanding (Crs.) 9.6
Face Value (INR) 10.0
52 week High/Low (INR) 305.85/1930
50
100
150
200
250
300
350
Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17
Share Price Performance
Consolidated P&L Statement
50
Particulars (INR Crs.) Q2 FY18 Q2 FY17 YoY % Q1FY18 QoQ % H1 FY18 H1 FY17 YoY % FY17
Revenue from Operations 311.3 297.4 4.7% 387.4 -19.6% 698.7 634.3 10.2% 1,220.7
Exhibi tion Cost 88.5 86.6 2.1% 107.1 -17.4% 195.5 181.6 7.7% 345.3
Food & Beverages Cost 16.8 18.3 -8.5% 20.5 -18.1% 37.2 36.7 1.4% 68.1
Employee Benefi ts Expense 23.3 21.8 6.9% 23.0 1.5% 46.3 43.4 6.5% 86.4
Lease Rental & Hire Charges 48.5 44.0 10.1% 52.2 -7.1% 100.6 90.5 11.2% 185.8
CAM, Power & Fuel , R&M 47.5 43.5 9.3% 52.6 -9.7% 100.1 88.5 13.2% 174.5
Other Expenses 42.3 56.0 -24.3% 56.3 -24.8% 98.6 104.3 -5.4% 214.6
EBITDA 44.4 27.2 63.4% 75.9 -41.4% 120.3 89.3 34.7% 146.1
EBITDA Margin % 14% 9% 513 bps 20% -530 bps 17% 14% 314 bps 12%
Depreciation & Amortisation 21.5 20.8 3.5% 21.5 -0.2% 43.0 41.0 4.8% 84.1
Impairment Loss on PP&E 0.7 - 0.6 11.6% 1.3 - 1.3
Other Income 2.9 2.1 35.8% 2.3 24.3% 5.2 4.6 13.1% 9.1
Finance Cost 7.3 5.8 25.4% 7.2 1.7% 14.5 11.6 24.8% 25.3
Exceptional Items - - - - - -
Share of Profi t from Joint Ventures (0.0) (0.0) -61.3% 0.0 -198.7% 0.0 (0.0) -101.4% 0.1
PBT 17.8 2.7 559.8% 48.9 -63.5% 66.7 41.2 61.9% 44.6
Current Tax 6.7 1.9 247.8% 17.8 -62.3% 24.5 15.7 55.9% 14.7
Deferred Tax (0.6) (0.8) -30.9% (1.1) -47.6% (1.6) (1.1) 51.9% 0.9
Tax perta ining to earl ier years - - - - - (1.6)
PAT 11.7 1.6 643% 32.1 -64% 43.8 26.5 65% 30.6
PAT Margin % 4% 1% 322 bps 8% -453 bps 6% 4% 208 bps 2.5%
Earnings Per Share (EPS) 1.27 0.17 643% 3.49 -64% 4.77 2.89 65% 3.33
Consolidated Balance Sheet Statement
51
Assets (INR Crs.) Sep-17 Mar-17
Non-Current Assets:
Property, Plant & Equipment 670.8 672.8
Capital work-in-progress 72.0 62.6
Goodwill 17.5 17.5
Other Intangible Assets 11.7 12.4
Investments in Joint Ventures 0.1 0.1
Other Investments 1.0 1.2
Loans 71.7 69.0
Other Financial Assets 81.4 71.8
Deferred Tax Assets (Net) 37.6 48.3
Tax Assets (Net) 8.4 5.5
Other Non Current Assets 77.6 77.6
Total Non Current Assets 1,050 1,039
Current Assets:
Inventories 9.3 9.1
Other Investments 67.6 10.7
Trade Receivables 68.8 46.6
Cash and Bank Balances 16.8 9.8
Bank Balances Other than above 2.2 3.4
Loans 4.3 4.4
Other Financial Assets 0.3 0.3
Other Current Assets 18.4 21.0
Total Current Assets 187.7 105.3
Total Assets 1,237.2 1,144.1
Equity & Liabilities (INR Crs.) Sep-17 Mar-17
Equity:
Equity Share Capital 96.2 96.2
Other Equity 533.5 489.0
Interest in Inox Benefit Trust, at cost (32.7) (32.7)
Equity attributable to owners of the company 597.0 552.5
Non-Controlling Interest 0.0 0.0
Total Equity 597.0 552.5
Non-current liabilities:
Borrowings 270.0 291.9
Other Financial Liabilities 2.6 3.1
Provisions 10.2 10.0
Other Non-current Liabilities 80.5 82.9
Total of Non-Current Liabilities 363.3 388.0
Current Liabilities:
Borrowings - -
Trade Payables 102.4 88.4
Other Financial Liabilities 98.0 64.8
Other Current Liabilities 59.9 36.0
Provisions 16.5 14.4
Current Tax Liabilities (Net) 0.0 0.0
Total of Current Liabilities 276.9 203.6
Total Equity & Liabilities 1,237.2 1,144.1
Thank YouBalesh Talapady GM – Business AnalysisINOX Leisure Ltd.Contact+91-22-4062 6927Email: [email protected]
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