INOX Leisure Limited
23
INOX Leisure Limited Investor Presentation January 2014
Transcript of INOX Leisure Limited
INOX Leisure Limited Investor Presentation
January 2014
INOX – a diversified business group with market leadership
2
Privately held
India’s largest cryogenic
engineering company,
amongst the world’s
largest
Manufacturing facilities
in India, US, Canada,
Brazil and China
Listed on BSE and NSE
49% subsidiary of GFL
India’s largest
integrated multiplex
chain
Currently operates 76
properties in 41 cities
comprising of 296
screens and 80,848
seats
Listed on BSE and NSE
India’s largest
manufacturer of
refrigerants,
chloromethanes &
PTFE
Carbon credit revenues
utilized to build strong
businesses
Subsidiaries in 3
countries, JVs in 2
80 year track record of ethical business growth
Diversified, professionally managed business group
22 companies (including two listed, 7 international subsidiaries, and 5 joint ventures – of which 3 international)
10 different businesses
Gross block over Rs 7,000 crores, Gross revenues over Rs 5,000 crores
More than 100 business units across India, employing more than 10,000 people
50:50 joint venture with
Air Products and
Chemicals Inc(USA), a
Fortune 500 Company
India’s largest industrial
gas manufacturer –
around 40 plants across
the country
75% subsidiary of GFL
Fully integrated wind
turbine manufacturer
with state of the art
facilities for nacelles,
blades, towers, and
hubs
India’s fastest growing
and amongst largest
wind farm solutions
provider
100% subsidiary of GFL
Wind farm operator with
around 200 MW of
operational wind farms,
with another 100 MW
under construction,
across 4 different
States
Market leadership across almost all businesses
Indian Movie Exhibition Business
3
Immense opportunity for large, organized players
Organized Retail
on Overdrive
Organized retail growing at rapid rate of 26.8% CAGR
o As of 2012, only 8% of the $518 bn retail market in India was organized
o Organized retail expected to grow even faster by 2015 crossing over 10% share of total retail
o Favorable regulatory environment – 51% FDI permitted in multi brand retail
o Real Estate sector more organized – huge development in malls and commercial properties
Large Malls need anchor tenants – strong preference for Multiplexes
Vibrant
Domestic Box
Office
Domestic theatrical accounts for 76% of total film industry revenues in 2012
Box Office collections estimated to grow at 10.8% CAGR from Rs 85 bn in 2012 to Rs 142 bn in 2017
Multiple drivers for box office growth –
o Digital Cinema enabled wide releases Larger box office collections Film Distributors
enjoying large profits Larger investments Quality content pipeline
o Younger demographics and increasing discretionary spends esp. on entertainment
o Limited alternative entertainment options
o Movie going is a social activity
Underpenetrated
multiplex market
India is a severely under-served market with low screen density (8 screens / mn vs. 117 in US)
Multiplex screens account for just 15% of total screens
Latent demand in several markets for quality movie going experience
Large Movie
Industry
~ 1000 movies released per annum
~ 5 billion tickets sold annually
Quality content across genres and languages
Source: FICCI KPMG Report, IRIS India Retail Report 2013,Research Reports
India’s Largest Integrated Multiplex Chain
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14 States 41 Cities
76 Multiplexes 296 Screens 80848 Seats
45 million patrons *
TAMILNADU 3 Properties | 14 Screens
KARNATAKA 8 Properties | 31 Screens
GOA 1 Properties | 4 Screens
ANDHRA PRADESH 7 Properties | 31 Screens
MAHARASTRA 19 Properties |76 Screens
GUJARAT 6 Properties |25 Screens
RAJASTHAN 7 Properties |22 Screens
HARYANA 3 Properties | 10 Screens S
MADHYA PRADESH 3 Properties | 11 Screens
UTTAR PRADESH 2 Properties | 8 Screens
JHARKHAND 1 Properties | 4 Screens
WEST BENGAL 13 Properties |49 Screens
CHHATTISGARH 2 Properties | 8 Screens
ORISSA 1 Properties |3 Screens
* FY14 Estimate
• Track record of aggressive expansion
• Pan India Presence
• Strong project pipeline
Largest Integrated Multiplex Chain in India
• Unmatched service and ambience
• State of the art technology
• Premium multiplex properties
• Strong content pipeline
Unmatched Consumer Experience
• Rising footfalls
• High ticket prices
• Highly profitable F&B service
• Focus on other operating income
• By leveraging on brand partnerships
Robust Operating Performance
•Owned Properties
•E-Tax Exemption
Fillips to profitability
Key Value Drivers
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Track Record of Aggressive Expansion
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On average, added two properties every quarter over the last decade
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Current
2 Prop.
8 Screens
3 Prop.
12 Screens
6 Prop.
25 Screens
9 Prop.
35 Screens
14 Prop.
51 Screens
22 Prop.
76 Screens
26 Prop.
91 Screens
32 Prop.
119 Screens
63 Prop.
239 Screens
68 Prop.
257 Screens
74 Prop.
285 Screens
76 Prop.
296 Screens
SURAT
VIZIANAGARAM
KALKA
RAIPUR
Jaipur
Madurai
HYDERABAD
NAVI MUMBAI
PUNE
(Amanora)
BHUBANESWAR
UDAIPUR
BHOPAL
LILUAH
SILIGURI
(CC)
Vijaywada
(LEPL)
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2 FAME
Properties
VIZAG (CMR)
BANGALORE
(Mantri Sq)
BELGAUM
JAIPUR
(Raja Park)
KANPUR
BANGALORE
(J.P.Nagar)
--------------------
25 FAME Properties
HYDERABAD
SILIGURI
KOLKATA
(Rajarhat)
INDORE
(Central Mall)
THANE
VIZAG
(Beach Road)
FARIDABAD
NAGPUR
(Jaswant Tuli)
BANGALORE
(Swagath)
BURDWAN
BHARUCH
DURGAPUR
JAIPUR
(Crystal Palm)
LUCKNOW
RAIPUR
KOLKATA
(Swabhumi)
VIJAYWADA
DARJEELING
KOTA
NAGPUR
(Wardhaman Nagar)
CHENNAI
JAIPUR
(Bani Park)
KOLKATA
(Salt Lake)
GOA
MUMBAI
(Nariman Point)
KOLKATA
(Elgin Road)
PUNE
VODADARA
BANGALORE
(Magrath Road)
JAIPUR
(Vaishali Ngr)
INDORE
(Sapna Sangeeta)
IPO
Acquisition
of 89
Cinemas
Acquisition
of Fame
India
Includes 6 Managed Properties with 20 screens
Pan India Presence
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Cities Properties
Well distributed mix of properties
Screens Seats
West, 16
South, 8
North, 8
East, 9
West, 29
South, 18
North, 12
East, 17
West, 116
South, 76
North, 40
East, 64
West,
33817
South,
18832
North,
10811
East, 17388
Strong Project Pipeline
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Sl No Property / City Location No of screens Est. Launch
1 Surat Dumas Road 8 11th Jul 2013
2 Vizianagaram Bochupeta 3 29th Jul 2013
3 *Kalka Sector 2 3 17th Sep 2013
4 *Raipur Sadunalla, Vidhan Sabha Road 4 5th Oct 2013
5 Jaipur Ajmer Road 3 23rd Dec 2013
6 Madurai Chockikulam, Gokhale Road , 5 24th Dec 2013
Total screens Launched Till Date 26
1 Kolkatta Syed Amer Ali Avenue 6 Q4 FY14
2 Vizag Jagadamba Centre 5 Q4FY14
3 Greater Noida Gautam Budh Nagar 5 Q4 FY14
4 Jamnagar Saat Rasta,Khambhaliya Main road 5 Q4 FY14
5 Jalgoan Station Road 4 Q4 FY14
Total Screens 25
1 Manipal Syndicate circle 3 Q1 FY15
2 Gurgaon Old Railway Road 3 Q1 FY15
3 Faridabad Sector 20 ,Delhi- Mathura Road 3 Q1 FY15
4 Lucknow Mohanlal Ganj, Rae Bareli Road 4 Q1 FY15
5 *Panchkula Sector 5 3 Q2 FY15
6 Vijayawada Canal Guest House, MG Road 3 Q2 FY15
7 Ajmer Panchsheel Nagar 3 Q2 FY15
8 Kurnool Bellary Road 3 Q2 FY15
9 Pune NIBM Ext Road 6 Q3 FY15
10 Thrissur Guruvayu Road 6 Q3 FY15
11 Kota DCM Road 4 Q3 FY15
12 *Bhiwadi Alwar Bypass 3 Q3 FY15
13 Jammu Nawabad 3 Q3 FY15
14 Bangalore Yelahankha, Bellary road 5 Q4 FY15
15 Goa Porvorium 4 Q4 FY15
16 Mangalore Kulshekar 8 Q4 FY15
17 Cuttack Town Hall Road 4 Q4 FY15
Total screens 68
*Management Properties
YTD FY14
Q4 FY14
FY15
Unmatched Service and Ambience
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Ambience World class ambience
Emphasis on safety, comfort and convenience
Video Quality
Setup own high quality DCI Compliant 2K Digital Projection Systems across
locations to ensure world class cinematic experience
High definition picture quality
3D enabled
High frame rate (HFR) ready (can go up to 60 fps)
Audio Quality Early adopters of Dolby ATMOS sound technology
Excellent acoustic systems
Distortion free sound
Programming
Experienced Programming Team
Wide variety of movies catering to different genres and tastes
Theatre management system installed in every unit allows flexibility in
programming
State of the Art Technology
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First multiplex chain in the country to co-develop an Integrated ERP software
Focus on ensuring transparency to all business partners (regulatory agencies and distributors)
End of day data availability allows for performance analysis and better management control
Automated DCR (Daily Collection Reports) sent to regulatory agencies and distributors - no
manual intervention for report generation and hence no room for errors, complete transparency
Setup NOC in Mumbai that enables management team to continuously monitor, control and
report information on digital systems across the country
Real time programming changes
Dynamic on screen ad scheduling from NOC
Premium Multiplex Properties
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VADODARA PUNE PUNE AMANORA
KOLKATA HYDERABAD MUMBAI
Strong Content Pipeline
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Expected Blockbuster Movies
Expected Hit Movies
07-Feb-14 HASEE TOH PHASEE HINDI SIDHARTH MALHOTRA, PARINEETI CHOPRA, ADAH SHARMA
07-Feb-14 HEARTLESS HINDI ADHYAYAN SUMAN, OM PURI, DEEPTI NAVAL
07-Feb-14 LONE SURVIVOR ENG MARK WAHLBERG, BEN FOSTER, ERIC BANA
07-Feb-14 SAVING MR BANKS ENG TOM HANKS
07-Feb-14 THE LEGO MOVIE (3D) ENG CHANNING TATUM, COBIE SMOULDERS, JONAH HILL, ELIZABETH BANKS
14-Feb-14 GUNDAY HINDI RANVEER SINGH, ARJUN KAPOOR
14-Feb-14 ENDLESS LOVE ENG ROBERT PATRICK, JOELY RICHARDSON, BRUCE GREENWOOD
14-Feb-14 THAT AWKARD MOMENT ENG ZAC EFFRON, MILES TELLER, EMOGEN POOTS
14-Feb-14 WINTERS TALE ENG JENNIFER CONNELLY, WILL SMITH, COLIN FARRELL, RUSSELL CROWE
14-Feb-14 HER ENG JOAQUIN PHOENIX, AMY ADAMS, SCARLETT JOHANSSON
14-Feb-14 ROBO COP ENG JAY BARUCHEL, ABBIE CORNISH, GARY OLDMAN, SAMUEL L JACKSON, MICHAEL KEATON
21-Feb-14 HIGHWAY HINDI RANDEEP HOODA, ALIA BHATT
21-Feb-14 DARR @ THE MALL HINDI JIMMY SHERGILL, NUSHRAT BHARUCHA, ARIF ZAKARIA
21-Feb-14 POMPEII (3D) ENG EMILY BROWNING, CARRIE ANN MOSS, PAZ WEGA, KIEFER SUTHERLAND
21-Feb-14 THE MONUMENTS MEN ENG MATT DAMON, GEORGE CLOONEY, CATE BLANCHETT, BILL MURRAY
28-Feb-14 12 YEARS A SLAVE ENG BRAD PITT, BENEDICT CUMBERBATCH, MICHAEL FASSBENDER
28-Feb-14 SHADI KE SIDE EFFECTS HINDI FARHAN AKHTAR, VIDYA BALAN, VIR DAS, RAM KAPOOR
28-Feb-14 QUEEN HINDI KANGANA RANAUT, RAJKUMAR YADAV
07-Mar-14 300 : RISE OF AN EMPIRE (3D) ENG LENA HEADEY, EVA GREEN, RODRIGO SANTORO, DAVID VANHAM
07-Mar-14 TRAFFIC HINDI
MANOJ BAJPAYEE, JIMMY SHERGILL, PROSENJIT CHATTERJEE, PARAMBATTA CHATTOPADHYAY, SACHIN
KHEDEKAR
07-Mar-14 I LOVE DESI HINDI VEDANT BALI, PRIYANKA SHAH, GULSHAN GROVER
07-Mar-14 TOTAL SIYAPPA HINDI ALI ZAFER, YAMI GAUTAM
07-Mar-14 GULAB GANG HINDI MADHURI DIXIT, JUHI CHAWLA, MAHIE GILL
07-Mar-14 MR PEABODY & SHERMAN (3D) ENG LESLIE MANN, STANLEY TUCCI, ARIEL WINTER
14-Mar-14 BEWAKOOFIAN HINDI AYUSHMANN KHURANA, SONAM KAPOOR, RISHI KAPOOR
14-Mar-14 HATE STORY 2 HINDI SUSHANT SINGH, SURVEEN CHAVLA, JAY BHANUSHALI
21-Mar-14 RAGINI MMS 2 HINDI SUNNY LEONE
21-Mar-14 O TERI HINDI PULKIT SAMRAT, SARAH JANE DIAS, ANUPAM KHER, MANOJ PAHWA
28-Mar-14 NOAH ENG RUSSELL CROWE, EMMA WATSON, ANTHONY HOPKINS, JENNIFER CONNELLY
28-Mar-14 YOUNGISTAN HINDI JACKKY BHAGNANI, NEHA SHARMA, FAROOQ SHAIKH, BOMAN IRANI
28-Mar-14 HAPPY ENDING HINDI SAIF ALI KHAN, ILLIANA D CRUZ, GOVINDA, PRIETY ZINTA, RANVIR SHOREY, KALKI
Rising Footfalls
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Quality content driving Occupancy rates Expansion driving total footfalls
(millions)
o Convenient locations / Good catchment areas
o Good mix of Hollywood, Bollywood and Regional movies
o“Virtuous cycle” in movie business
Quality content leading to strong box office collections
Movies with over Rs 100 cr box office collections increased from 1 in 2008 to 9 in 2012
Higher profitability enabling large investments by film producers / distributors
Note: Excludes Managed properties
23% 25%
28% 32% 33%
27% 30%
25.7 30.7
35.3
10.7 10.8 8.8
30.4
High Ticket Prices (ATP)
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ATP Growth – overall
o Inox brand enjoys a premium positioning amongst urban consumers
o Prime locations provide strong pricing power
o Increasing contribution of 3D movies – 3D tickets are priced at a premium of 15-20 % over 2D tickets
Note: Excludes Managed properties
152
156
160
153 156
163
157
Highly Profitable F&B Service
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SPH Growth – overall
o Multiple initiatives on increasing the highly profitable F&B revenues (70% Gross margins)
Unique variety of food with choice of International, Indian and City-Centric special flavors
No menu fatigue - Variety in menu for week days and week ends
Season specific food festivals
Investment in quality machines to serve best pop corn
o Contribution of F&B revenues to net revenues increased from 18% to 22% over last 5 years
Note: Excludes Managed properties
F&B Cost (% of F&B revenues)
41 44 47 49 48 51 49
32% 31% 30% 27% 27%
25% 26%
Focus on Other Operating Income
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Other operating revenues Significant scope for enhancement of high margin other
operating revenues
Pan India Reach
~ 45 mn patrons estimated in FY14
Premium positioning
Good locations
Several initiatives have been taken up to focus on better monetization
Ad Revenues
Hiked Ad rates
Focus on high value / long term deals
Sales to Leading corporates
DAVP / Government Segment
Off-screen advertising
Other Revenues
Virtual Print Fee
Online booking revenues
Conducting Fee
(Rs million)
172 292 324
78 110 146 334
167
299 323
143 136 190
469
FY11 FY12 FY13 Q1 FY14 Q2 FY14 Q3 FY14 9 mnthsFY14Ad Revenue Other Operating Revenue
By Leveraging Brand Partnerships
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Owned Properties
18
City / Property State Screens Seats Total Area (sft)
Multiplex Area
(sft)
Pune Maharashtra 4 1316 140,229 53,189
Vadodara Gujarat 4 1318 109,452 48,622
Nariman Point, Mumbai Maharashtra 5 1323 40,131 40,131
Jaipur Rajasthan 2 787 26,392 26,392
Swabhumi , Kolkatta West Bengal 4 1022 46,204 46,204
Anand Gujarat 3 624 27,871 27,871
Corporate Office Maharashtra - - 16,000 -
o Owned properties in prime locations enable savings in lease expense, thereby boosting EBITDA
E-Tax Exemption
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E-Tax No. of prop Screens Seats
Average Residual
Period
Full Tax 51 209 56,049
Exempted 12 45 12,982 2 years
Zero Tax 7 22 6,148
• Tax incentives such as e-tax exemptions enable faster recovery of capital cost and
reduced exhibition cost
• E-tax exemption treated as capital receipt – no income tax on the amount
Annexure I - Key Management Personnel
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Mr. Pavan Jain
Mr. Vivek Jain
Mr. Deepak Asher
Mr. Siddharth Jain
Mr. Haigreve
Khaitan
Mr. Sanjeev Jain
Mr. Amit Jatia
Mr. Kishore Biyani
Board of Directors Key Management Personnel
Mr. Alok Tandon
(CEO)
Mr. Muralikrishna
(CPO)
Mr. Rajender Singh
(VP – Programming)
Ms. Daizy Lal
(COO)
Mr. Harshavardhan
Gangurde
(VP-Marketing)
Mr. Uday Sakharkar
(VP – Projects)
Mr. Jitender Verma
(CTO)
Annexure II Financial Summary
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Profit and Loss Statement
Rs million FY11 FY12 FY13 Q1 FY14 Q2 FY14 Q3 FY14 9 mnths
FY14
Net Box Office 2269 3889 4567 1332 1378 1171 3881
F&B Revenues 602 1139 1418 450 446 385 1281
Ad Revenues 172 292 324 78 110 146 334
Other Revenues 224 380 359 151 141 204 496
Total Revenues 3267 5700 6668 2011 2075 1906 5992
Distributor Share 1029 1803 2099 604 622 545 1771
F&B Cost 195 349 426 135 132 107 374
Payroll Cost 261 394 427 116 117 139 372
Other Expenses 1417 2344 2700 765 797 829 2391
Total Expenses 2902 4890 5652 1620 1668 1620 4908
EBITDA 365 810 1016 391 407 286 1084
EBITDA Margin (%) 11.17% 14.21% 15.24% 19.44% 19.61% 15.01% 18.09%
Depreciation 229 375 430 120 128 131 379
Interest 162 243 267 73 74 67 214
Exceptional Items -56 180 25 45 - 45
Tax -1 27 109 55 58 23 136
Minority share in loss 19 57
PAT 50 42 185 143 102 65 310
Annexure II Financial Summary
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Shareholding Pattern
Balance Sheet
Rs million FY11 FY12 FY13 9 mnths
FY13
9 mnths
FY14
Networth 3010 3092 5081 5180 5391
Borrowings (LT +ST) 2109 2110 2460 2253 2225
Net Fixed Assets 4950 4892 5950 5974 6283
Current Assets 720 651 820 825 1005
Current Liabilities 1864 1344 1767 1795 1870
Non Current Assets 1563 1235 3199 3087 2892
Non Current Liabilities 250 232 661 658 694
Corporates
14%
Institutions
2%
Inox Benefit
Trust
21% Gujarat
Fluorochemicals
49%
Others
14%
THANK YOU
Inox Leisure Limited
ABS Towers, Old Padra Road,
Vadodara, Gujarat – 390 007
