Gujarat Fluorochemicals Limited

INOX Leisure Limited
Investor Presentation
January 2014
INOX – a diversified business group with market leadership
 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
 50:50 joint venture with
Air Products and
Chemicals Inc(USA), a
Fortune 500 Company
 India’s largest
manufacturer of
refrigerants,
chloromethanes &
PTFE
 India’s largest industrial
 Carbon credit revenues
utilized to build strong
businesses
gas manufacturer –
around 40 plants across
the country
 Privately held
 75% subsidiary of GFL
 100% subsidiary of GFL
 India’s largest cryogenic
 Fully integrated wind
 Wind farm operator with
engineering company,
amongst the world’s
largest
 Manufacturing facilities
in India, US, Canada,
Brazil and China
 Subsidiaries in 3
countries, JVs in 2
turbine manufacturer
with state of the art
facilities for nacelles,
blades, towers, and
hubs
 India’s fastest growing
around 200 MW of
operational wind farms,
with another 100 MW
under construction,
across 4 different
States
and amongst largest
wind farm solutions
provider
 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
Market leadership across almost all businesses
2
Indian Movie Exhibition Business
Organized Retail
on Overdrive
Large Movie
Industry
Vibrant
Domestic Box
Office
Underpenetrated
multiplex market
 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
 ~ 1000 movies released per annum
 ~ 5 billion tickets sold annually
 Quality content across genres and languages
 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
 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
Source: FICCI KPMG Report, IRIS India Retail Report 2013,Research Reports
Immense opportunity for large, organized players
3
India’s Largest Integrated Multiplex Chain
HARYANA
3 Properties | 10 Screens S
14 States
41 Cities
76 Multiplexes
296 Screens
80848 Seats
45 million patrons *
MADHYA PRADESH
3 Properties | 11 Screens
UTTAR PRADESH
2 Properties | 8 Screens

JHARKHAND
1 Properties | 4 Screens
RAJASTHAN
7 Properties |22 Screens



GUJARAT
6 Properties |25 Screens



ORISSA

MAHARASTRA
19 Properties |76 Screens


CHHATTISGARH
GOA
1 Properties |3 Screens
2 Properties | 8 Screens
ANDHRA PRADESH

1 Properties | 4 Screens
WEST BENGAL
13 Properties |49 Screens
7 Properties | 31 Screens


KARNATAKA
8 Properties | 31 Screens

TAMILNADU
3 Properties | 14 Screens
* FY14 Estimate
4
Key Value Drivers
Largest Integrated Multiplex Chain in India
• Track record of aggressive expansion
• Pan India Presence
• Strong project pipeline
Unmatched Consumer Experience
•
•
•
•
Unmatched service and ambience
State of the art technology
Premium multiplex properties
Strong content pipeline
Robust Operating Performance
•
•
•
•
•
Rising footfalls
High ticket prices
Highly profitable F&B service
Focus on other operating income
By leveraging on brand partnerships
Fillips to profitability
•Owned Properties
•E-Tax Exemption
5
Track Record of Aggressive Expansion
Acquisition
of Fame
India
68 Prop.
63 Prop. 257 Screens
239 Screens
74 Prop.
76 Prop.
285 Screens 296 Screens
Acquisition
of 89
Cinemas
22 Prop.
76 Screens
IPO
2 Prop.
3 Prop.
8 Screens 12 Screens
FY03
PUNE
VODADARA
FY04
KOLKATA
(Elgin Road)
6 Prop.
25 Screens
FY05
KOLKATA
(Salt Lake)
GOA
MUMBAI
(Nariman Point)
9 Prop.
35 Screens
32 Prop.
26 Prop. 119 Screens
91 Screens
14 Prop.
51 Screens
Includes 6 Managed Properties with 20 screens
FY06
BANGALORE
(Magrath Road)
JAIPUR
(Vaishali Ngr)
INDORE
(Sapna Sangeeta)
FY07
DARJEELING
KOTA
NAGPUR
(Wardhaman Nagar)
CHENNAI
JAIPUR
(Bani Park)
FY08
BHARUCH
DURGAPUR
JAIPUR
(Crystal Palm)
LUCKNOW
RAIPUR
KOLKATA
(Swabhumi)
VIJAYWADA
FY09
FY10
FARIDABAD
NAGPUR
(Jaswant Tuli)
BANGALORE
(Swagath)
BURDWAN
HYDERABAD
SILIGURI
KOLKATA
(Rajarhat)
INDORE
(Central Mall)
THANE
VIZAG
(Beach Road)
FY11
VIZAG (CMR)
BANGALORE
(Mantri Sq)
BELGAUM
JAIPUR
(Raja Park)
KANPUR
BANGALORE
(J.P.Nagar)
-------------------25 FAME Properties
FY12
LILUAH
SILIGURI
(CC)
Vijaywada
(LEPL)
-----------2 FAME
Properties
FY13
HYDERABAD
NAVI MUMBAI
PUNE
(Amanora)
BHUBANESWAR
UDAIPUR
BHOPAL
Current
SURAT
VIZIANAGARAM
KALKA
RAIPUR
Jaipur
Madurai
On average, added two properties every quarter over the last decade
6
Pan India Presence
Cities
East, 9
Properties
West, 16
East, 17
West, 29
North, 12
North, 8
South, 8
Screens
South, 18
Seats
East, 64
West, 116
North, 40
East, 17388
West,
33817
North,
10811
South, 76
South,
18832
Well distributed mix of properties
7
Strong Project Pipeline
YTD FY14
Q4 FY14
FY15
Sl No
1
2
3
4
5
6
Property / City
Surat
Vizianagaram
*Kalka
*Raipur
Jaipur
Madurai
Total screens
Location
Dumas Road
Bochupeta
Sector 2
Sadunalla, Vidhan Sabha Road
Ajmer Road
Chockikulam, Gokhale Road ,
Launched Till Date
1
2
3
4
5
Kolkatta
Vizag
Greater Noida
Jamnagar
Jalgoan
Total Screens
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Manipal
Gurgaon
Faridabad
Lucknow
*Panchkula
Vijayawada
Ajmer
Kurnool
Pune
Thrissur
Kota
*Bhiwadi
Jammu
Bangalore
Goa
Mangalore
Cuttack
Total screens
*Management Properties
No of screens
8
3
3
4
3
5
26
Est. Launch
11th Jul 2013
29th Jul 2013
17th Sep 2013
5th Oct 2013
23rd Dec 2013
24th Dec 2013
Syed Amer Ali Avenue
Jagadamba Centre
Gautam Budh Nagar
Saat Rasta,Khambhaliya Main road
Station Road
6
5
5
5
4
25
Q4 FY14
Q4FY14
Q4 FY14
Q4 FY14
Q4 FY14
Syndicate circle
Old Railway Road
Sector 20 ,Delhi- Mathura Road
Mohanlal Ganj, Rae Bareli Road
Sector 5
Canal Guest House, MG Road
Panchsheel Nagar
Bellary Road
NIBM Ext Road
Guruvayu Road
DCM Road
Alwar Bypass
Nawabad
Yelahankha, Bellary road
Porvorium
Kulshekar
Town Hall Road
3
3
3
4
3
3
3
3
6
6
4
3
3
5
4
8
4
68
Q1 FY15
Q1 FY15
Q1 FY15
Q1 FY15
Q2 FY15
Q2 FY15
Q2 FY15
Q2 FY15
Q3 FY15
Q3 FY15
Q3 FY15
Q3 FY15
Q3 FY15
Q4 FY15
Q4 FY15
Q4 FY15
Q4 FY15
8
Unmatched Service and Ambience
Ambience
 World class ambience
 Emphasis on safety, comfort and convenience
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
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
9
State of the Art Technology
 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
10
Premium Multiplex Properties
VADODARA
PUNE
PUNE AMANORA
KOLKATA
HYDERABAD
MUMBAI
11
Strong Content Pipeline
07-Feb-14
07-Feb-14
07-Feb-14
07-Feb-14
07-Feb-14
14-Feb-14
14-Feb-14
14-Feb-14
14-Feb-14
14-Feb-14
14-Feb-14
21-Feb-14
21-Feb-14
21-Feb-14
21-Feb-14
28-Feb-14
28-Feb-14
28-Feb-14
HASEE TOH PHASEE
HEARTLESS
LONE SURVIVOR
SAVING MR BANKS
THE LEGO MOVIE (3D)
GUNDAY
ENDLESS LOVE
THAT AWKARD MOMENT
WINTERS TALE
HER
ROBO COP
HIGHWAY
DARR @ THE MALL
POMPEII (3D)
THE MONUMENTS MEN
12 YEARS A SLAVE
SHADI KE SIDE EFFECTS
QUEEN
07-Mar-14 300 : RISE OF AN EMPIRE (3D)
07-Mar-14
07-Mar-14
07-Mar-14
07-Mar-14
07-Mar-14
14-Mar-14
14-Mar-14
21-Mar-14
21-Mar-14
28-Mar-14
28-Mar-14
28-Mar-14
TRAFFIC
HINDI
HINDI
ENG
ENG
ENG
HINDI
ENG
ENG
ENG
ENG
ENG
HINDI
HINDI
ENG
ENG
ENG
HINDI
HINDI
SIDHARTH MALHOTRA, PARINEETI CHOPRA, ADAH SHARMA
ADHYAYAN SUMAN, OM PURI, DEEPTI NAVAL
MARK WAHLBERG, BEN FOSTER, ERIC BANA
TOM HANKS
CHANNING TATUM, COBIE SMOULDERS, JONAH HILL, ELIZABETH BANKS
RANVEER SINGH, ARJUN KAPOOR
ROBERT PATRICK, JOELY RICHARDSON, BRUCE GREENWOOD
ZAC EFFRON, MILES TELLER, EMOGEN POOTS
JENNIFER CONNELLY, WILL SMITH, COLIN FARRELL, RUSSELL CROWE
JOAQUIN PHOENIX, AMY ADAMS, SCARLETT JOHANSSON
JAY BARUCHEL, ABBIE CORNISH, GARY OLDMAN, SAMUEL L JACKSON, MICHAEL KEATON
RANDEEP HOODA, ALIA BHATT
JIMMY SHERGILL, NUSHRAT BHARUCHA, ARIF ZAKARIA
EMILY BROWNING, CARRIE ANN MOSS, PAZ WEGA, KIEFER SUTHERLAND
MATT DAMON, GEORGE CLOONEY, CATE BLANCHETT, BILL MURRAY
BRAD PITT, BENEDICT CUMBERBATCH, MICHAEL FASSBENDER
FARHAN AKHTAR, VIDYA BALAN, VIR DAS, RAM KAPOOR
KANGANA RANAUT, RAJKUMAR YADAV
ENG
LENA HEADEY, EVA GREEN, RODRIGO SANTORO, DAVID VANHAM
MANOJ BAJPAYEE, JIMMY SHERGILL, PROSENJIT CHATTERJEE, PARAMBATTA CHATTOPADHYAY, SACHIN
KHEDEKAR
VEDANT BALI, PRIYANKA SHAH, GULSHAN GROVER
ALI ZAFER, YAMI GAUTAM
MADHURI DIXIT, JUHI CHAWLA, MAHIE GILL
LESLIE MANN, STANLEY TUCCI, ARIEL WINTER
AYUSHMANN KHURANA, SONAM KAPOOR, RISHI KAPOOR
SUSHANT SINGH, SURVEEN CHAVLA, JAY BHANUSHALI
SUNNY LEONE
PULKIT SAMRAT, SARAH JANE DIAS, ANUPAM KHER, MANOJ PAHWA
RUSSELL CROWE, EMMA WATSON, ANTHONY HOPKINS, JENNIFER CONNELLY
JACKKY BHAGNANI, NEHA SHARMA, FAROOQ SHAIKH, BOMAN IRANI
SAIF ALI KHAN, ILLIANA D CRUZ, GOVINDA, PRIETY ZINTA, RANVIR SHOREY, KALKI
HINDI
I LOVE DESI
HINDI
TOTAL SIYAPPA
HINDI
GULAB GANG
HINDI
MR PEABODY & SHERMAN (3D) ENG
BEWAKOOFIAN
HINDI
HATE STORY 2
HINDI
RAGINI MMS 2
HINDI
O TERI
HINDI
NOAH
ENG
YOUNGISTAN
HINDI
HAPPY ENDING
HINDI
Expected Blockbuster Movies
Expected Hit Movies
12
Rising Footfalls
Quality content driving Occupancy rates
23%
25%
28%
32%
33%
27%
30%
Expansion driving total footfalls
(millions)
25.7
30.7
35.3
30.4
10.7
10.8
8.8
Note: Excludes Managed properties
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
13
High Ticket Prices (ATP)
ATP Growth – overall
163
160
156
152
153
156
157
Note: Excludes Managed properties
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
14
Highly Profitable F&B Service
SPH Growth – overall
F&B Cost (% of F&B revenues)
32%
41
44
47
49
48
51
31%
30%
49
27%
27%
25%
26%
Note: Excludes Managed properties
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
15
Focus on Other Operating Income
Other operating revenues
Significant scope for enhancement of high margin other
(Rs million)
operating revenues
 Pan India Reach
469
 ~ 45 mn patrons estimated in FY14
 Premium positioning
299
323
167
 Good locations
172
FY11
292
324
FY12
FY13
143
78
136
110
190
334
146
Q1 FY14 Q2 FY14 Q3 FY14 9 mnths
Ad Revenue
Other Operating Revenue
FY14
Several initiatives have been taken up to focus on better monetization
Ad Revenues
Other Revenues
 Hiked Ad rates
 Focus on high value / long term deals
 Sales to Leading corporates
 DAVP / Government Segment
 Off-screen advertising
 Virtual Print Fee
 Online booking revenues
 Conducting Fee
16
By Leveraging Brand Partnerships
17
Owned Properties
City / Property
Pune
Vadodara
Nariman Point, Mumbai
Jaipur
Swabhumi , Kolkatta
Anand
Corporate Office
State
Screens
Seats
Total Area (sft)
Multiplex Area
(sft)
Maharashtra
4
1316
140,229
53,189
Gujarat
4
1318
109,452
48,622
Maharashtra
5
1323
40,131
40,131
Rajasthan
2
787
26,392
26,392
West Bengal
4
1022
46,204
46,204
Gujarat
3
624
27,871
27,871
Maharashtra
-
-
16,000
-
o Owned properties in prime locations enable savings in lease expense, thereby boosting EBITDA
18
E-Tax Exemption
E-Tax
No. of prop
Screens
Seats
Full Tax
51
209
56,049
Exempted
12
45
12,982
Zero Tax
7
22
6,148
•
Average Residual
Period
2 years
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
19
Annexure I - Key Management Personnel
Board of Directors
Mr. Pavan Jain
Mr. Haigreve
Khaitan
Mr. Vivek Jain
Mr. Sanjeev Jain
Mr. Deepak Asher
Mr. Amit Jatia
Key Management Personnel
Mr. Alok Tandon
Ms. Daizy Lal
(CEO)
(COO)
Mr. Muralikrishna
Mr. Jitender Verma
(CPO)
(CTO)
Mr. Harshavardhan
Gangurde
Mr. Rajender Singh
(VP-Marketing)
(VP – Programming)
Mr. Uday Sakharkar
Mr. Siddharth Jain
Mr. Kishore Biyani
(VP – Projects)
20
Annexure II
Financial Summary
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
21
Annexure II
Financial Summary
Shareholding Pattern
Inox Benefit
Trust
21%
Gujarat
Fluorochemicals
49%
Institutions
2%
Corporates
14%
Others
14%
Balance Sheet
Rs million
FY11
FY12
FY13
9 mnths
FY13
9 mnths
FY14
Networth
Borrowings (LT +ST)
Net Fixed Assets
Current Assets
Current Liabilities
Non Current Assets
Non Current Liabilities
3010
2109
4950
720
1864
1563
250
3092
2110
4892
651
1344
1235
232
5081
2460
5950
820
1767
3199
661
5180
2253
5974
825
1795
3087
658
5391
2225
6283
1005
1870
2892
694
22
THANK YOU
Inox Leisure Limited
ABS Towers, Old Padra Road,
Vadodara, Gujarat – 390 007