investor presentation - pvr cinemas€¦ · company overview 128 theatres 51 cities india’s...
TRANSCRIPT
INVESTOR PRESENTATION
June’17
Company Overview
128 Theatres
51 Cities
India’s largest cinema chain
Leadership position in India with approx. 40% share of
Hollywood Box Office and approx. 25% share of
Bollywood Box Office
5 mn sq.ft of operational retail space, another 4 mn sq.ft
under development
Revenues of 21,817 mn INR and EBITDA of 3,759 mn INR 1
Market Cap of 66 bn INR 2
[1] For FY 16-17 [2] Market Cap as on 30th June’17
587
Screens
75 Million Guests
Promoters 20%
Multiples Private Equity
14%
Warburg Pincus 14%
FIIs 29%
Domestic Mutual Funds
12%
Others 11%
Share Holding as on 30th June’17
2
3
4
18 STATES
50 CITIES
126 CINEMAS
579 SCREENS
1,32,026 SEATS
Pan India Presence With Highest Market Share
Region-wise Benchmarking by # of Screens
Region PVR Total PVR Market
Share PVR Rank
North 194 702 28% 1
South 125 462 27% 1
West 238 905 26% 1
East 22 131 17% 3
Total 579 2200 26% 1
City (Tier) wise Benchmarking by # of Screens
Tier PVR Total PVR Market
Share PVR Rank
I (13) 349 854 41% 1
II (53) 184 885 21% 1
III (116) 46 461 10% 3
Total 579 2200 26% 1
PVR is # 1 operator in all key markets in India
Source: Industry Research 5
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 (1,200 movie
releases and over 1.95 billion movie goers annually)
Domestic box office collections contribute 70% of the film
industry revenue
6 Source: KPMG FICCI Report 2017
70%
8%
1%
10%
11%
Source: KPMG FICCI Report 2017 & MPAA Theatrical Market Statistics Report 2016, 1 USD = 65 INR 7
India – A High Growth Box Office Market
India has moved ahead of UK & France to become 4th Largest movie market in the world
125
85
82
61
57
30
26
7
USA
France
Spain
UK
Gemany
China
Japan
India
Industry is projected to grow @ 8% CAGR in next 5 years
TOP 7 INTERNATIONAL BOX OFFICE MARKET (USD BILLION)
INDIAN FILM INDUSTRY REVENUES (INR BILLION)
NO.OF SCREENS PER MILLION POPULATION
GROWTH IN MULTIPLEXES
Under screened market with huge potential for growth
Modern day Multiplexes are growing & single screens are shutting down
7,300
2,200
2016 2009
9,500 10,600 9,675
925
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
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“A+ Site” real estate locations providing competitive
advantage
Anchor tenant in more than 60% of top 20 Malls in India
Asset light model with no ownership of real estate
Long term rental agreements (15-20 years) and has established
strong relationships with marquee mall developers in the
country
5 mn sq.ft. of existing real estate with another 4 mn signed for
future rollout - Doesn’t own real estate
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Strong Location Strategy
PVR is the most preferred multiplex chain for Mall developers
Present in leading Indian malls (representative list)
Keeping In Step With Digital India
Partnership with technology aggregators
Own Website & Mobile App
Movie Calendar
Paper Less Ticketing
Tied up with BookMyShow, Paytm & Justdial to leverage growth in online penetration
Rising Online Penetration
Select and reserve your seat
Pre-book F&B and service on seat
To inform and excite consumers about the upcoming movies
QR Code - paper less ticketing
23%
33%
41%
51%
FY14 FY15 FY16 FY17
Online GBOC Contribution
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40 46
53 64
72 81
FY12 FY13 FY14 FY15 FY16 FY17
F&B Spend per patron (INR)
Best In Class Concessions
Enhanced F&B offerings
Highest F&B spend per patron
25
Best In Class Concessions
Huge potential for growth
PVR
F&B Spend Per Head as a % of Average Ticket Price
27% 31% 36% 46% 50%
59%
CJ CGV MajorCineplex
Cineworld Regal AMC Cineplex
F&B Spend Per Head as a % of Average Ticket Price
Data: Company Financials (12 months CY16)
International Chains
USA Canada UK Korea Thailand
26
India has an unique concept of intermission giving opportunity to sell concession twice
Relatively lower F&B spend vis-à-vis other global players
28% 29% 32% 36% 38% 41%
FY12 FY13 FY14 FY15 FY16 FY17
654 859
1,517 1,771
2,145
2,518
FY12 FY13 FY14 FY15 FY16 FY17
Advertisement Revenue (INR mn)1
Leader In Advertisement Revenues
Premium brand recognition leading to pricing premium
Partnership with multiple brands across sectors
Advertisement revenues 2X of the nearest competitor
27 [1] Consolidated
Strong brand with great locations and quality footfalls translating into partnerships with leading brands
Global Cinema Comparison
Period CY 2016 CY 2016 CY 2016 CY 2016 CY 2016 FY 16-17
Operating Metrics Regal Cinemark AMC Wanda CGV Korea PVR
Theaters 565 522 388 320 133 126
Screens 7,310 5,865 5,295 2,789 996 579
Domestic Market Share 18% 15% 13% 13% NA 25%/40%1
Screens Per Theater 12.9 11.2 13.6 8.7 7.5 4.6
Attendance
Attendance ('000) 217,000 304,800 208,000 193,284 1,03,706 75,200
Attendance per screen ('000) 29.7 52.0 39.3 69.3 104.1 129.9
Pricing
ATP $10.08 $6.50 $10.01 $6.47 $6.47 $3.02
SPH $4.60 $3.59 $5.02 $2.33 $1.68 $1.26
SPH as a % of ATP 46% 55% 50% 36% 26% 41%
[1] 25% for Bollywood movies and 40% for Hollywood movies 1 USD = 65 INR 28
4.7
7.3 6.9
3.9 5.0
3.5
FY 14-15 FY 15-16 FY 16-17
EBIDTA per screen (INR mn)1
PVR Inox
33.6 39.0 39.8
26.6 29.6 27.7
FY 14-15 FY 15-16 FY 16-17
Revenue per screen (INR mn)1
PVR Inox
2,097
3,559 3,759
1,310 1,967
1,551
FY 14-15 FY 15-16 FY 16-17
EBITDA (INR mn)
PVR Inox
14,859 19,130
21,817
9,036 11,683 12,298
FY 14-15 FY 15-16 FY 16-17
Revenues (INR mn)
PVR Inox
Superior Financial Performance vs Competition
PVR outperforms the industry 29
81% 142%
44% 32%
64% 77%
[1]Revenues & EBTIDA per screens are calculated based on average number of screens operational during the year
64%
60%
26% 46% 97%
23%
59 70 75
41 53 54
FY 14-15 FY 15-16 FY 16-17
Admits (mn) & Occupancy (%)
PVR Inox
Superior Operating Performance vs Competition
34%
29%
33%
28%
PVR outperforms the industry 30
31%
25%
44% 40% 30%
176
188 196
164 170
178
FY 14-15 FY 15-16 FY 16-17
ATP (INR)
PVR Inox
11% 10%
7%
64 72
81
55 58 62
FY 14-15 FY 15-16 FY 16-17
SPH (INR)
PVR Inox
30% 25% 16%
1,771 2,145
2,518
815 910 962
FY 14-15 FY 15-16 FY 16-17
Sponsorship Income (INR mn)
PVR Inox
136% 162%
117%
Annexures
31
Management Team
Chairman & MD
Mr. Ajay Bijli
Established PVR in 1995
Over 22 years of experience in the movie exhibition industry
Recognised as the pioneer of the multiplex industry in India
Awarded the “E&Y Entrepreneurial Award 2013 for Business Transformation’ and CNBC’s Emerging India Awards in the same year
Joint MD
Mr. Sanjeev Kumar
Over 22 years of experience in the cinema exhibition industry
Manages the film acquisition and distribution business and programming activities of PVR
Also involved in the development and growth strategy of PVR
Mr. Ajay Bijli Chairman and Managing
Director
Mr. Sanjeev Kumar Joint Managing Director
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Management Team
Chief Executive Officer
Mr. Gautam Dutta
Has been with PVR for over 11 years and has over 2 decades of experience
Oversees the company’s operations to ensure efficient and cost-effective management of resources
Chief Executive Officer of PVR Pictures & Chief Business Planning & Strategy of PVR Ltd
Mr. Kamal Gianchandani
Over 23 years of experience
Handling film financing, distribution, syndication, licensing and exhibition for both Indian and foreign language films in India
Group Chief Financial Officer
Mr. Nitin Sood
He has been instrumental in raising capital from banks and investors. He also oversees accounting, legal and compliance for various group companies and heads discussions for any new business expansion and M&A opportunities
CEO Luxury Cinemas and PVR bluO
Mr. Renaud Paliiere
Renaud serves as the CEO, International Development since 2012 . He is also the CEO of PVR bluO
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[1] Exceptional items in financial results includes write-off of assets on a property
FY16-17 Performance Snapshot - Consolidated Particulars (INR mn) FY16-17 FY 15-16 Growth
Income 21,628 18,811 15%
Expenses 18,058 15,571 16%
Operating Profit 3,570 3,240 10%
Operating Profit Margin 16.5% 17.2% -0.7%
Other Income 189 319 -41%
EBITDA 3,759 3,559 6%
EBITDA Margin 17.2% 18.6% -1.4%
Depreciation 1,384 1,151 20%
EBIT 2,375 2,408 -1%
Finance Cost 806 839 -4%
PBT before Exceptional item 1,569 1,569 0.03%
Exceptional Item1 (41) (116) 65%
PBT after Exceptional item 1,528 1,453 5%
Tax 570 467 22%
PAT 958 986 -3%
Box Office 52%
F&B 25%
Sponsorship Revenues
11%
Other Businesses
5% Other Operating
Income 6% Other
Income 1%
FY 16-17 Revenue Mix
Film Hire Charges
21%
Cost of Food & Beverages
6%
Personnel Expenses
10%
Rent 18%
Repairs and Maintenance
4%
Electricity & CAM 12%
Other Expenses
11%
FY 16-17 Expenditure Mix (% of Total Revenues)
156 167 168 178 188 196
FY12 FY13 FY14 FY15 FY16 FY17
ATP (INR)
22
34 39
42 46
50
FY12 FY13 FY14 FY15 FY16 FY17
Cities
25
37
60 59
70 75
FY12 FY13 FY14 FY15 FY16 FY17
Footfalls (mn)
166
351 421
464 516
579
FY12 FY13 FY14 FY15 FY16 FY17
Screens
35
Historical Performance
36
Strong Financial Performance
5,298 8,154
13,588 14,859
19,130 21,817
FY12 FY13 FY14 FY15 FY16 FY17
Revenues (INR mn)
858 1,259
2,230 2,097
3,559 3,759
FY12 FY13 FY14 FY15 FY16 FY17
EBITDA (INR mn)
252
443 504
116
981 958
FY12 FY13 FY14 FY15 FY16 FY17
PAT (INR mn)
THANK YOU !