Post on 16-Jun-2020
CORPORATE PRESENTATION
January 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 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 15,978 million in revenue1
INR 2,909 million in EBITDA1
[1] Based on trailing 12 months from Sept 30, 2015
1
4
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
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 491 Screens
4 Screens
19 Screens
79 Screens
369 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 27 screens, 30-35 more expected to
open in 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
11
BEST IN CLASS CONCESSIONS
Enhanced F&B offerings
Highest F&B spend per patron
40 46 53
64 71
FY11-12 FY12-13 FY13-14 FY14-15 H1 FY15-16
F&B Spend per patron (INR)
12
BEST IN CLASS CONCESSIONS
Huge potential for growth
PVR
25%
28% 29%
32%
36%
39%
FY11 FY12 FY13 FY14 FY15 H1 FY16
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
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
837 737
918
765
H1, FY15-16 H1, FY14-15 H1, FY15-16 H1, FY14-15
Comparable Total
H1, FY2015-16 (INR Mn)
20% 14%
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
H1, FY15-16 PERFORMANCE SNAPSHOT - CONSOLIDATED
17
[1] Exceptional item include loss on write off of cinema under construction during the period ended June 30, 2015.
Revenue Mix
Expenditure Mix (% of Total Revenues)
Sponsorship Revenues
9%
Other Operating Income
2%
Cost of Food & Beverages
7%
Repair & Maintenance 3%
Box Office 57%
F&B 26%
Other Businesses 5%
Other Income 1%
Film Hire Charges 23%
Personnel Expenses
9%
Rent 16%
Electricity & CAM
11%
Other Expenses 8%
Particulars (INR Mn) H1 Consolidated
FY 2015-16 FY 2014-15 Growth
Income 9,606 7,612 26%
Expenses 7,576 6,491 17%
Operating Profit 2,030 1,121 81%
Operating Margin 21.1% 14.7% 6.4%
Other Income 103 18 466%
EBITDA 2,133 1,139 87%
EBITDA Margin 22.0% 14.9% 7.0%
Depreciation 590 596 -1%
EBIT 1,543 543 184%
Finance Cost 424 386 10%
PBT before Exceptional item 1,119 156 616%
Exceptional Item1 (33) 0 0%
PBT after Exceptional item 1,087 156 595%
Tax 91 0 30167%
PAT 996 156 538%
14,875
9,709 9,036 6,121
FY14-15 H1 FY15-16
Revenues (INR Mn)
PVR INOX
2,099 2,133
1,310 1,239
FY14-15 H1 FY15-16
EBITDA (INR Mn)
PVR INOX
32
21 24 16
FY14-15 H1 FY15-16
Revenue per screen (INR Mn)
PVR INOX
4.5 4.5 3.5 3.2
FY14-15 H1 FY15-16
EBITDA per screen (INR Mn)
PVR INOX
SUPERIOR FINANCIAL PERFORMANCE VS COMPETITION
PVR outperforms the industry 18
65%
59%
60% 72%
43% 29%
32%
33%
SUPERIOR OPERATING PERFORMANCE VS COMPETITION
59 38 41
29
FY14-15 H1 FY15-16
Admits (Mn) & Occupancy (%)
PVR INOX
177 185
164 167
FY14-15 H1 FY15-16
Average Ticket Price1 (INR)
PVR INOX
64 71 55 57
FY14-15 H1 FY15-16
F&B Spend per patron (INR)
PVR INOX
1,687
918 815 421
FY14-15 H1 FY15-16
Advertisement Revenues (INR Mn)
PVR INOX
31% 25% 38%
33%
PVR outperforms the industry 19
44% 30%
8% 11%
118%
107% 25% 16%
[1] PVR ATP includes 3D Glasses upcharge
20
HIGHEST ADMISSION PER SCREEN ACROSS THE WORLD
INTERNATIONAL PEERS
Cinema Chains ADMISSIONS (000) SCREENS ADMISSIONS PER SCREEN (000)
PVR 66,007 477 138
US & MEXICO
Regal 220,000 7,367 30
AMC 187,00 4,960 38
Cinenmark 264,000 5,676 47
Carmike 50,056 2897 20
Cinepolis 116,900 3,000 39
ASIA
Major- Thailand 29,718 479 62
CGV- Korea 101,000 833 121
EUROPEAN
Cineworld- UK 82,900 1875 44
Odeon and UCI Cinemas-UK 78,500 2,227 35
Figures for International chains are based on CY 2014
Figures for PVR are based on Trailing 12 months from 30th Sept, 2015
PVR PICTURES - SUBSIDIARY
Leading independent distribution company in India which has got a pan-India distribution network
Distributed more than 100 international and Indian films in the past 3 years
Company owns the entire distribution rights for international films distributed in India
PVR Pictures to be pure play distribution company
To Focus on Hollywood /Bollywood independent films distribution
Film Distribution also acts as a strategic arm to support the
Exhibition Business by bringing Independent Hollywood Films
to Indian Market
Dabbled in Film Production in the past but decision taken
to close down the same 21
A 51:49 JV with Major Cineplex Group of Thailand
Positioned as a premium leisure and entertainment destination
Presently have 6 bowling centers with 125 lanes across 5 cities in
India
A perfect combination of trendy nightclub experience, fine
music, F&B and state of the art bowling
PVR bluO - SUBSIDIARY
22
Chairman & MD Mr. Ajay Bijli Established PVR in 1995 Over 20 years of experience in the movie exhibition industry Recognized as the Pioneer of the multiplex industry in India
Joint MD Mr. Sanjeev Kumar Manages Film acquisition and distribution business and programming activities of PVR Over 16 years of experience in the movie exhibition industry Also Involved in development & growth strategy of PVR
Chief Executive Officer
Mr. Gautam Dutta Over 25 years of experience in advertising field Handling entire Operations, F&B and Sponsorship revenues of Exhibition circuit
President PVR Pictures
Mr. Kamal Gianchandani Over 22 years of experience Handling film financing, distribution, syndication, licensing & exhibition for both Indian and foreign language films in India
Group Chief Financial Officer
Mr. Nitin Sood Over 19 yrs of experience As a group CFO involved in overall business, financial & strategic planning for all businesses, project evaluations, compliance
and corporate governance
28
MANAGEMENT TEAM
23
Chief Legal & Company Secretary
Mr. NC Gupta Over 47 years of experience In PVR currently the Head of Legal, Company Secretary and the Compliance Officer of our Company
Chief Human Resources Officer
Mr. Anshul Goel Over 22 years of experience Responsible for implementing best HR practices at PVR & working on employee development &
retention
Chief Operating Officer
Mr. Vishal Sawhney Over 22 years of experience Responsible for operations in PVR
MANAGEMENT TEAM
24
25
AWARDS AND RECOGNITIONS
THANK YOU !