PVR Ltd to Discuss PVR-INOX Merger Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Senthil Kumar - AVIVA LIFE INSURANCE INDIA Limited - Analyst : This is -- the question is regarding more towards the CCI. As you said, there's no impact on the currency on the financial side. But if I have one to see the operational part because if you see the criteria of the CCI, there are certain criteria, which more or less agrees to the overall concept of this merger completely. Like in case -- for example, in case of horizontal mergers, there's going to be an overlap in the markets and other factors that could be involved. That could impact the merger, right, because it's going to be a horizontal merger?

Question: Senthil Kumar - AVIVA LIFE INSURANCE INDIA Limited - Analyst : Okay. Okay. But in case is there a possibility that CCI can come with a query in this regard?

Question: Senthil Kumar - AVIVA LIFE INSURANCE INDIA Limited - Analyst : Okay. But in that case, which criteria you feel on the operational side could get a concern over that? Because you said there's a...

Question: Manish Poddar - Nippon India Mutual Fund - Analyst : So just one question. In terms of both the players, to acquire distributor mind share or, let's say, to acquire properties, was there a significant undercutting to gain market share?

Question: Manish Poddar - Nippon India Mutual Fund - Analyst : The broader question, which I'm trying to understand, I thought both the players were fighting this on sort of OTT on equal footing. And they were while negotiating with distributors or with the online players, with PayTM or any of these vendors, they were having good deals or even they were not undercutting each other. So just trying to understand, in terms of EV gains, was there -- is there significant gains on the table itself, let's say, when you're negotiating with a mall on or earlier, let's say, INOX was negotiating let's say, 10% lower and just to get the space. So is there a material gap or this is not where incremental gains can come in? That is what I'm trying to understand. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Manish Poddar - Nippon India Mutual Fund - Analyst : Sorry, what I'm trying to understand is, incrementally, whatever you said is signed, but let's say, in the past, let's say, 3, 5 years, were you vying for rentals for properties by, let's say, undercutting each other? That is what I'm trying to understand.

Question: Abhay Moghe - Bajaj Allianz Life Insurance Co. Ltd. - Analyst : This is a very basic question. Like for the CCI approval, do you have to apply for the exemption from the CCI approval or you go ahead with the merger process and if it all CCI thinks they will issue a notification to you, how does it work?

Question: Abhay Moghe - Bajaj Allianz Life Insurance Co. Ltd. - Analyst : Okay. So we will only let the clarity on the CCI [thing] if at all there is some change. Only like then your final -- like the answer [twenty] will stay till the final approval process is over, right?

Question: Abhay Moghe - Bajaj Allianz Life Insurance Co. Ltd. - Analyst : No, no. So what I'm trying to say is that the answer (inaudible) on the CCI part will stay till the end of the process. Because we don't know if at all CCI wants to issue a notification. Like till the whole process is over, we won't be sure. I understand the legal part of it, like legal councils have given, but we don't know the CCI's side.

Question: Priyam Daga - VT Capital Market Private Limited - Analyst : My question is regarding the value of OTT and fully leveraged SPH, which PVR enjoy it. So my question is regarding the (inaudible), what would be the pricing of the SPH and F&B products you have INOX sales, (inaudible)?

Question: Priyam Daga - VT Capital Market Private Limited - Analyst : All right. One more question I had regarding your existing screens that PVR and INOX has. So these will continue like the (inaudible) even given the more pricing (inaudible).

Question: Tushar Bohra - MK Ventures - Analyst : A quick check in terms of synergies. Would there be a possible rationalization also of existing properties even as you look for growth in terms of new ones? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Tushar Bohra - MK Ventures - Analyst : Okay. In terms of the pipeline, so you mentioned that you'll continue to look at aggressively. But just if we can understand what kind of -- should we look at it as 1 plus 1? So if PVR was looking at a certain number of properties pre this merger, and 'INOX likewise, should we take it as the combined entity would look at double the number?

Question: Tushar Bohra - MK Ventures - Analyst : Sure. One question on the holding structure, pardon my voice, sore throat. INOX is -- the promoters are holding through another listed entity, right? Any views on whether there is an impact on that structure also because of the intended merger?

Question: Tushar Bohra - MK Ventures - Analyst : Can I put in a business question on this call? Relates to normal business?

Question: Tushar Bohra - MK Ventures - Analyst : Just want to understand whether you're starting to see some bit of traction in terms of increased utilization of properties, post-COVID, any kind of a behavioral change that you noticed? Any other insights that you may want to highlight?

Question: Himanshu Shah - Dolat Capital Market Private Ltd. - Analyst : Congratulations on the deal. I just want to reconfirm, we mentioned that there is no lock-in on the shareholding of either promoters or even from the perspective of if anyone to increase their stake, there are no restrictions. Is that correct?

Question: Himanshu Shah - Dolat Capital Market Private Ltd. - Analyst : Okay. And either of the promoters, would they have any right of first refusal if the promoter is looking to sell out or something?

Question: Himanshu Shah - Dolat Capital Market Private Ltd. - Analyst : Fair enough, sir. And lastly, sir, now with a larger entity with a much stronger balance sheet, would we be looking to launch any OTT platform, movie-only OTT platform? Or would we like to venture into that part of movie distribution business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Himanshu Shah - Dolat Capital Market Private Ltd. - Analyst : Fair enough, sir. That's it from my side and all the best.

Question: Piyush Sharma - Eneva India - Analyst : Just had a couple of quick ones. Firstly, is it fair to assume that post closure PVR Privilege members should be able to redeem rewards at INOX properties and vice versa?

Question: Piyush Sharma - Eneva India - Analyst : Okay. And then very quickly, just second, if I look at all the properties that will be coming online for the merged entity over the next couple of years, roughly what percentage of those would you say would be in premium formats?