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

4

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

5

Track Record of Aggressive Expansion

6

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)

------------

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

7

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

8

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

9

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

10

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

11

VADODARA PUNE PUNE AMANORA

KOLKATA HYDERABAD MUMBAI

Strong Content Pipeline

12

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

13

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)

14

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

15

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

16

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

17

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

19

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

20

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

21

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

22

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