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INVESTOR PRESENTATION
March 2016
DISCLAIMER
Safe Harbor: - Some information in this report may contain forward-looking statements. We have based these forward looking statements on our current beliefs, expectations and intentions as to facts, actions and events that will or may occur in the future. Such statements generally are identified by forward-looking words such as “believe”, “plan”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will” or other similar words. A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. We have chosen these assumptions or bases in good faith, and we believe that they are reasonable in all material respects. However, we caution you that forward-looking statements’ and assumed facts or basis almost always vary from actual results, and the differences between the results implied by the forward-looking statements and assumed facts or bases and actual results can be material, depending on the circumstances. You should also keep in mind that any forward-looking statement made by us in this report or elsewhere speaks only as of the date on which we made it. New risks and uncertainties come up from time to time, and it is impossible for us to predict these events or how they may affect us. We have no duty to, and do not intend to, update or revise the forward-looking statements in this report after the date hereof. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in multiplex business due to the entry of new players, including those factors which may affect our cost advantage, lack of good quality content, onset of new technologies such as DTH, IPTV and increasing penetration of Home-video, which may impact overall industry growth, wage increases in India, real estate costs increases, delay or failure In handover of properties from real estate developers, the success of our subsidiary companies, withdrawal of entertainment tax exemption granted by government and general economic conditions affecting our industry. In light of these risks and uncertainties, any forward-looking statement made in this report or elsewhere may or may not occur and has to be understood and read along with this disclaimer. Others: In this report, the terms “we”, “us”, “our”, “PVR”, “PVRL” or “the Company”, unless otherwise implies, refer to PVR Limited (“PVR Limited”) and its subsidiaries, PVR Pictures Limited, PVR bluO Entertainment Ltd, PVR Leisure Limited, Zea Maize Pvt Ltd.
2
COMPANY OVERVIEW
109 Theatres
44 Cities
491 Screens
66 Million Guests
India’s largest cinema chain
Leadership position in India with approx. 30% share of
Hollywood Box Office and approx. 20% share of Bollywood Box
Office
4.5 mn sq.ft of operational retail space, another 3 mn sq.ft under
development
INR 17,729 million in revenue1
INR 3,174 million in EBITDA1
[1] Based on trailing 12 months from Dec 31, 2015
1
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17 STATES 45 CITIES 111 CINEMAS 501 SCREENS 1,17,113 SEATS
INDIA – A HIGH GROWTH BOX OFFICE MARKET
Movie going is the number 1 entertainment option for people in India
Largest number of movies released in the world (1,000 movie releases and over
1.9 billion movie goers annually) 1
Domestic box office collections contribute almost 3/4th of the film industry
revenue2
[1]CRISIL Research Report May, 2015 [2]KPMG FICCI Report 2015 5
Source: MPAA Theatrical Market Statistics Report 2014
Source: KPMG FICCI Report 2015
Industry is projected to grow @ 10% CAGR in next 5 years
6th Largest movie market in the world
INDIA – A HIGH GROWTH BOX OFFICE MARKET
6
Under screened market with huge potential for growth
Modern day Multiplexes are growing & single
screens are shutting down
Source: KPMG FICCI Report 2015
Source: KPMG FICCI Report 2015
INDIA – A HIGH GROWTH BOX OFFICE MARKET
7
7
PVR
Diversified Product
Offerings Strong Location
& Product Strategy
Cutting Edge Technology
Best in class concessions
Leader in Ad revenues
Comfort & Convenience
Premium guest
experience
8
OUR KEY STRENGTHS
DIVERSIFIED PRODUCT OFFERINGS
Caters to Tier 2 & Tier 3 markets
Hygienic environment with basic facilities
Premium seating
7.1 Dolby Surround System
4k digital projection with 3D screens
Comfortable seating, with wider legroom
Mainstream cinema with latest amenities
7 Star movie experience along with fine dining
One of a Kind movie experience
Luxurious comfortable Reclining seats
Gourmet menu with live kitchen
Intended for an audience who desire a great, exclusive experience
Total 501 Screens
4 Screens
22 Screens
89 Screens
366 Screens
20 Screens
9
STRONG LOCATION AND PRODUCT STRATEGY
“A+ Site” real estate locations providing
competitive advantage
Anchor tenant in more than 50% of top 20
Malls in India
4.5 mn sq.ft. of existing real estate with another
3 mn signed for future rollout
Opened 37 screens, 16 more expected to open
in Q4, FY15-16
10
CUTTING EDGE TECHNOLOGY
100% Digital Screens using 2K DCI compliant projectors
Largest partnership with IMAX in India
Currently 3 screens operational
2 more IMAX installations in next 24-36 months
7.1 Dolby surround sound,4k digital system with 3D
Provide patrons with an enhanced audio-visual experience
DIGITAL SCREENS
IMAX
Enhanced Cinema Experience - ECX
DOLBY ATMOS
Largest partnership of Dolby Atmos in India
Highest 3D installations in India.
All properties are 3D enabled
3D Technology
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40 46 53
64 72
FY11-12 FY12-13 FY13-14 FY14-15 9M FY15-16
F&B Spend per patron (INR)
BEST IN CLASS CONCESSIONS
Enhanced F&B offerings
Highest F&B spend per patron
12
25%
28% 29%
32%
36%
38%
FY11 FY12 FY13 FY14 FY15 9M FY16
BEST IN CLASS CONCESSIONS
Huge potential for growth
PVR
F&B Spend Per Head as a % of Average Ticket Price
27% 31% 34% 51% 47%
59%
CJ CGV MajorCineplex
Cineworld Regal AMC Cineplex
F&B Spend Per Head as a % of Average Ticket Price
Data: Company Financials (9 months CY15)
International Chains
USA Canada UK Korea Thailand
13
1,540 1,310
1,677
1,369
9M FY16 9M FY15 9M FY16 9M FY15
Comparable Total
9M, FY15-16 (INR mn)
531 654 859
1,517 1,771
FY10-11 FY11-12 FY12-13 FY13-14 FY14-15
Advertisement Revenue (INR mn)
LEADER IN ADVERTISEMENT REVENUES
Premium brand recognition leading to pricing premium
Partnership with multiple brands across sectors
Advertisement revenues 2X of the nearest competitor
14
23% 18%
COMFORT AND CONVENIENCE
Recliner Seats
Mobile App
Movie calendar
QR Code - paper less ticketing
Select and reserve your seat
Pre-book F&B
15
+100% price premium over normal seats
33% of total seats sold online representing 40% of Box office
PREMIUM GUEST EXPERIENCE
Past was about Quantity…
Future is about Quality…
Guest focused innovations
Improving productivity of existing assets (Refurbishment)
Maximizing Revenue/EBIDTA per guest
Focus on free cash flow and shareholder value
16
9M, FY15-16 PERFORMANCE SNAPSHOT - CONSOLIDATED
17
[1] Exceptional item include loss on write off of cinema & Bowling Centre under construction.
Particulars (INR mn) 9M Consolidated
FY 2015-16 FY 2014-15 Growth
Income 14,611 11,818 24%
Expenses 11,728 9,875 19%
Operating Profit 2,883 1,943 48%
Operating Profit Margin 19.7% 16.4% 3.3%
Other Income 170 27 531%
EBITDA 3,053 1,970 55%
EBITDA Margin 20.7% 16.6% 4.1%
Depreciation 893 915 -2%
EBIT 2,159 1,055 105%
Finance Cost 616 579 6%
PBT before Exceptional item 1,544 476 225%
Exceptional Item1 (37) 0 0%
PBT after Exceptional item 1,506 476 217%
Tax 210 4 5900%
PAT 1,296 472 175%
Box Office 54%
F&B 25%
Sponsorship Revenues
11%
Other Businesses
7%
Other Operating
Income 2% Other
Income 1%
Revenue Mix
Film Hire Charges
22%
Cost of Food & Beverages
7%
Personnel Expenses
9%
Rent 16%
Repairs and Maintenance
3%
Electricity & CAM 11%
Other Expenses
11%
EBITDA 21%
Expenditure Mix (% of Total Revenues)
193
181
190
181
9M, FY15-16 9M, FY14-15 9M, FY15-16 9M, FY14-15
Comparable Total
Average Ticket Price1 (Rs)
48 44
54 47
9M, FY15-16 9M, FY14-15 9M, FY15-16 9M, FY14-15
Comparable Total
Admits (mn) and Occupancy(%)
36% 33% 33%
36% 7,999
6,666
9M, FY15-16 9M, FY14-15
Net Box Office (Rs mn)
20% 9% 16% 6% 5%
F&B PERFORMANCE – 9M, FY 2015-16 - EXHIBITION
25.0%
28.8%
9M, FY15-16 9M, FY14-15
COGS
3,630
2,804
9M, FY15-16 9M, FY14-15
Net F&B (Rs mn)
29%
-3.8%
73
64
72
64
9M, FY15-16 9M, FY14-15 9M, FY15-16 9M, FY14-15
Comparable Total
Spend Per Head (Rs)
13% 12%
BOX OFFICE PERFORMANCE – 9M, FY 2015-16 - EXHIBITION
[1] ATP includes 3D Glasses upcharge
REVENUE & EXPENDITURE ANALYSIS – 9M, FY15-16 - EXHIBITION
% Share 9M, FY15-16 9M, FY14-15
Net Box Office 58.0% 59.9%
Food & Beverages 26.3% 25.2%
Advertising 11.7% 11.7%
Other Revenues 4.0% 3.2%
7,999 6,666
3,630
2,804
1,611
1,303
549
355
9M, FY15-16 9M, FY14-15
9M (Rs mn)
Net Box Office Food & Beverages
Advertising Other Revenues
8% 9%
11% 13%
3% 2%
17% 18%
9% 9%
9M, FY15-16 9M, FY14-15
Fixed Overheads (% of Total Income)
Other Expenses CAM & Electricity
Repair & Maintenance Rent
Personnel Expenses
34% 35% 42% 43%
9M, FY15-16 9M, FY14-15
Film Hire %
Film Hire as a % of Gross Box Office
Film Hire as a % of Net Box Office
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ROCE ANALYSIS – EXHIBITION - AS ON 30 TH SEPT, 2015
1. Screens Operational > 2 years - Stabilized Screens
2. Screens Operational < 2 years – Yet to Stabilize
3. Screens under construction
[1] EBIT based on trailing 12 months from Sept 30, 2015 has been considered.
[2] Net Capital Employed is as on 30th Sept, 2015 . Net Capital Employed = Shareholders’ funds + Debt + Non current liabilities
Particulars (INR Mn) No of
Screens Net Capital Employed
Property Level After Allocation of
Corporate Overheads
EBIT ROCE EBIT ROCE
Screen Operational > 2 years (A) 393 8,989 2,326 25.9% 1,791 19.9%
Screen Operational < 2 years (B) 81 1,756 219 12.5% 115 6.5%
Operational Screens Total (A+B) 474 10,746 2,545 23.7% 1,906 17.7%
Screens under construction (C) 844
Grand Total (A+B+C) 11,589 2,545 22.0% 1,906 16.4%
Cash and Cash Equivalents (D) 3,712
Company Total (A+B+C+D) 15,301 2,545 16.6% 1,906 12.5%
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BALANCE SHEET POSITION – AS ON 31 ST DEC, 2015
3.6
2.0
As on 31st Mar'15 As on 31st Dec'15
Debt1 / EBITDA2
Particulars March 31, 2015 December 31, 2015
Debt (INR mn) 1 7,470 6,646
EBITDA (INR mn)2 2,097 3,174
Gross Debt / EBITDA 3.6 2.0
[1] Excludes INR 3500 mn raised for funding DT acquisition
[2] Based on trailing 12 Months from Dec 31, 2015
4,475
9,307
7,470
6,646 1.7
0.7
-
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
As on 31st Mar'15 As on 31st Dec'15
Debt1 / Equity
Equity (INR mn) Debt (INR mn) D/E Ratio
4.5
6.2
3.5 4.3
FY14-15 9M FY15-16
EBIDTA per screen (Rs mn)
PVR INOX
32.1 30.1
24.2 22.0
FY14-15 9M FY15-16
Revenue per screen (Rs mn)
PVR INOX
2,099
3,053
1,310
1,776
FY14-15 9M FY15-16
EBIDTA (Rs mn)
PVR INOX
14,875 14,780
9,036 9,103
FY14-15 9M FY15-16
Revenues (Rs mn)
PVR INOX
SUPERIOR FINANCIAL PERFORMANCE VS COMPETITION
PVR outperforms the industry 22
65% 62%
60% 72%
45% 29%
37% 33%
1,771 1,677
815 716
FY14-15 9M FY15-16
Sponsorship Revenues (Rs mn)
PVR INOX
64 72
55 58
FY14-15 9M FY15-16
SPH (Rs)
PVR INOX
177
190
164 171
FY14-15 9M FY15-16
ATP (Rs)1
PVR INOX
59 54 41 42
FY14-15 9M FY15-16
Admits (mn) & Occupancy(%)
PVR INOX
SUPERIOR OPERATING PERFORMANCE VS COMPETITION
31% 25% 36%
31%
PVR outperforms the industry 23
44% 29% 8%
11%
134% 117% 24% 16%
[1] PVR ATP includes 3D Glasses upcharge
THANK YOU !