16 June 2014

Wonderla Holidays

spotlight

The Idea Junction

Stock Info

Bloomberg

CMP (INR)

Equity Shares (m)

M.Cap. (INR b)/(USD b)

52-Week Range (INR)

1,6,12 Rel. Perf. (%)

WONH IN

198

56.5

11.2/0.2

226/125

12/-/-

World of wonders

Adrenalin for growth ride

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Wonderla Holidays (WONH) is one of the largest operators of amusement parks in India

and owns and operates two amusement parks under the brand name Wonderla situated

at Kochi and Bangalore.

WONH came up with an IPO raising INR1.8b for the development of Hyderabad Park,

which is expected to be operational from FY17.

Company has been successful in increasing the footfalls at 9% CAGR over the last five

years from 1.61m visitors in FY10 to 2.29m in FY14.

WONH has a flexi pricing policy for peak season and offseason to ensure growth in

footfalls in offseason. Its weekend prices are ~25% higher than weekday prices and

peak season prices are 8-10% higher than offseason prices.

30-40% of Wonderla's visitors are either teenagers/students. Also, "Wonderla Privilege

Card" is introduced as a loyalty program to attract repeat visits.

We expect earnings to post 19% CAGR from INR11 to INR15.6 over FY15E-17E, primarily

driven by higher realization growth and opening of new park (Hyderabad). The stock

trades at 16.2x FY16E and 12.7x FY17E earnings.

Financials & Valuation (INR m)

Y/E March

Sales

EBITDA

NP

EPS (INR)

Growth (%)

BV/Share (INR)

RoE (%)

RoCE (%)

P/E (x)

P/BV (x)

2015E 2016E 2017E

1,783 2,025 2,642

826

477

11.0

15.6

81.9

18.9

27.5

18.0

2.4

946 1,189

532

12.2

11.5

14.2

21.1

16.2

2.2

679

15.6

27.7

16.1

24.0

12.7

1.9

91.2 103.3

Shareholding pattern (%)

Strong brand equity complements first mover advantage

WONH's promoters have experience of over 14 years in operating an amusement

park. After having launched their first park in 2000 in Kochi under the name

Veegaland they successfully launched the second park in Bangalore in 2005 as

Wonderla. There are only 15-16 large players in India who operate large parks and

Wonderla is one of them. WONH has first mover advantage in Kochi and Bangalore

where there are only few medium and small parks but not a single large park.

WONH has excess land available in both the parks for future expansion.

As on

Promoter

Domestic Inst.

Foreign

Others

May-14

71.0

5.0

2.6

21.4

Stock performance (1 year)

Hyderabad and Chennai park projects to ensure long term sustainability

Wonderla is coming up with its new amusement park in Hyderabad spread over 49

acres of land (27 acres developed). The park is expected to be operational from

FY17 and to part fund the parks, Wonderla came up with a public offering raising

INR1.8b. Development of a park takes 20-24 months post approvals and 8-9 years

for pay-back. Company has not added a single park in the past 9 years and is now

aggressively expanding business with the addition of two new parks in Hyderabad

and Chennai (proposed) which will drive long term growth.

Spotlight

is a new offering from the Research team at Motilal Oswal. While our Coverage Universe

is a wide representation of investment opportunities in India, there are many emerging names in the

Mid Cap Universe that are not under coverage. Spotlight is an attempt to feature such mid cap stocks

by visiting such companies. We are not including these stocks under our active coverage at this point

in time. Motilal Oswal Research may or may not follow up on stocks under Spotlight.

Niket Shah

(Niket.Shah@MotilalOswal.com); +91 22 3982 5426

Sagar Shah

(Sagark@MotilalOsawal.com); +91 22 3312 4958

Investors are advised to refer through disclosures made at the end of the Research Report.

RED: Caution

AMBER: In transition

GREEN: Interesting

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| Wonderla Holidays

Stable growth in footfalls, pricing

WONH has been successful in increasing the footfalls at 9% CAGR over the last five years from

1.61m visitors in FY10 to 2.29m in FY14. The type of visitor is categorized in three ways: 1)

Educational Institutions, 2) Corporate houses/Group bookings and 3) General walk-in customers.

Around 60-62% of the Kochi customers and 70% of Bangalore customers are walk-in and rest are

either group booking or institutional visitors. Company has been taking a 10% price hike every

year for the last five years; equity testimony of strong brand recall. Average realization per

visitor (including ticket sales, food and beverages, product sale etc) on a consolidated basis has

increased from INR414 in FY09 to INR652 in FY14, marking 10% CAGR.

Flexi-pricing ensures continuity in footfalls

WONH has a flexi-pricing policy for peak season and offseason to ensure growth in footfalls in

offseason. Amusement parks attract larger crowd on weekends, thus weekend prices are at 25%

premium over weekday. Rates are also differentiated based on the festive season, with the rate

quote at 8-10% premium compared to regular weekend rates. Wonderla also offers "Fast Track"

tickets to reduce waiting time, which commands 100% premium over regular prices. Only 250

tickets (0.8% of total tickets) per day are offered as "Fast Track" tickets.

15-17% F&B revenue growth to drive margin

expansion

Food and beverages contribute 3-4% of the total revenue for WONH. Wonderla has entered into

revenue sharing model with 6 restaurants charging 25% of their revenue. Company has taken

over the operation of one restaurant "Waves Restaurant" at Bangalore and Kochi Park since

November 2012 and April 2013 respectively there-by driving growth. Also small kiosks and shops

are set up which sell the food items at MRP. Average realization per visitor in F&B has improved

by 21% CAGR from INR12 in FY09 to INR37 in FY14. We expect food and beverages revenues to

grow at 15-17% over the next 3 years.

Bangalore Resort enhances destination park theme

With the introduction of resort, Wonderla Amusement park has become a "destination" park as

against "one day attraction" like most parks in India. WONH launched its first leisure resort,

Wonderla Resort with 84 luxury rooms laced with amenities, beside the amusement park in

Bangalore in March 2012. Resort revenue forms only 4% of the overall revenue, however we

believe that the resort will act as a big driver to attract footfalls over the long term.

Wonderla Privilege Card - an innovative marketing mantra

As 80% of the amusement park's revenue comes from entry fees, innovative schemes are needed

to ensure regular footfalls. 30-40% of Wonderla's visitors are either teenagers/student. Wonderla

Privilege Card (10% of the revenue) is a loyalty program whereby visitors are given discounts (10-

20% of the the ticket price) for repeat visits. A card holder is eligible for 4 discounted tickets per

day. Additionally, on purchase of 12 tickets through the privilege card entitles a visitor to a free

visit in the park.

Attractive valuation at 12.7x FY17E earnings

We expect WONH's revenue to clock 22% CAGR to INR2.6b over FY15E-17E and PAT CAGR of 19% to

INR679m over FY15E- FY17E. The stock trades at 16.2x FY16E and 12.7x FY17E earnings. Given its

strong industry positioning, multiple growth opportunities and high entry barrier, we believe

WONH is rightly positioned to ride the growth wave.

16 June 2014

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Wonderla Holidays

Company description

Wonderla Holidays is of the largest operators of amusement parks in India which

currently owns and operates two amusement parks under the brand name

‘Wonderla’, situated at Kochi and Bangalore. Company is in the process of setting up

the third amusement park in Ranga Reddy district of Andhra Pradesh, Wonderla

Hyderabad. Company raised INR1.8b from an IPO for the development of Hyderabad

Park. It also owns and operates a resort besides the amusement park in Bangalore

under the brand name ‘Wonderla Resort’, which has been operational since March

2012.

Mr Kochouseph Chittilappill, the promoter, in the year 1996 had incorporated V-

Guard Industries Ltd, which is listed on BSE and NSE since 2008. Wonderla launched

its first amusement park in Kochi in the year 2000, by the name ‘Veegaland’ and

second amusement park in Bangalore in the year 2005, by the name ‘Wonderla’.

Pursuant to a scheme of amalgamation, the erstwhile ‘Veega Holidays and Parks

Private Ltd’ which owned and operated ‘Veegaland’, merged with Wonderla with

effect from April 1, 2008 and consequently both the amusement parks are being

operated under the name ‘Wonderla’.

Amusement parks offer a wide range of water and land-based attractions catering to

all age groups. Company has 22 water-based attractions and 33 land-based

attractions at Wonderla Kochi, situated on 93.17 acres of land and 20 water-based

attractions and 35 land-based attractions at Wonderla Bangalore, situated on 81.75

acres. Company recorded total footfalls of 2.34m in FY13 and 2.29m in FY14 across

the two amusement parks in Kochi and Bangalore. Total Footfalls across the two

amusement parks have posted a CAGR of 7.42% from FY11 to FY13.

The resort operated under the name, Wonderla Resort, is a ‘Three Star’ leisure

resort located beside the amusement park in Bangalore comprising of 84 luxury

rooms, with amenities including banquet halls, a board room, conference rooms, a

multi-cuisine restaurant, a solar heated swimming pool, recreation area, kids’

activity centre and a well equipped gym. Company has also acquired 49.57acres of

land for setting up the proposed amusement park in Ranga Reddy district of Andhra

Pradesh.

16 June 2014

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Wonderla Holidays

Strong brand equity coupled with first mover advantage

WONH creates strong brand equity over a decade

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Wonderla has created a strong brand equity over 14 years due to its experienced

management and continuous focus on enhancing customer experience through quality

service.

The promoters launched the first amusement park in 2000 in Kochi under the name

“Veegaland” and later on successfully launched the second park in Bangalore in 2005

as “Wonderla”.

Amusement parks operate for 365 days from 11am-7pm and no alcohol-based

beverages are allowed in the park.

WONH has spare land parcels in Kochi and Bangalore for expansion and also has

acquired freehold land in Hyderabad for setting up a park.

Over 14 years of operating experience with first mover advantage

Operating experience is a key requirement for successful working of an amusement

park. Wonderla’s management has operational experience in the amusement park

industry for over a decade. The promoters launched the first amusement park in

2000 in Kochi under the name Veegaland and later successfully launched the second

park in Bangalore in 2005 under as Wonderla. Pursuant to the amalgamation

scheme, Veega Holidays and Parks Private Ltd that operated the amusement park at

Kochi was amalgamated and both the parks now operate under the common brand

name “Wonderla”. Amusement parks operate for 365 days from 11am-7pm and

alcohol-based beverages are not allowed inside.

Acquisition of land – strong entry barrier

Land cost and its related clearances are the strongest entry barrier in development

of an amusement park. Closer the land is to a city, costlier it will be. Most of the

large parks require huge investment in land. The past six to seven years saw a huge

run-up in land costs, thus making an amusement park investment very expensive.

Proximity to city – a big advantage

Attractive location and its proximity to a city ensure footfalls addition. WONH’s

three parks -- Kochi, Bangalore and Hyderabad -- are situated in the proximity of the

main city. Wonderla Kochi is located in Pallikkara, 15km from central Kochi, while

Wonderla Bangalore is located off the Bangalore-Mysore highway, 28km from

central Bangalore. Wonderla Hyderabad is in the Ranga Reddy District, Andhra

Pradesh, ~27km from central Hyderabad, 33km from Secunderabad Railway Station

and 12km from Hyderabad Airport.

Land availability for future expansion

Park

Kochi Park

Bangalore

Hyderabad

Available Land

(acres)

93.17

81.75

49.50

Developed Land Balance for future expansion Wet and Dry Rides

(acres)

(acres)

(nos.)

28.75

39.20

27.00

64.42

42.55

22.50

55

55

42

Source: Company, MOSL

16 June 2014

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Wonderla Holidays

Wonderla Kochi - 28km from Cochin International Airport

Source: Company, MOSL

Wonderla – Kochi Park

Source: Company, MOSL

Wonderla Bangalore – 28km from Bangalore Railway Station

Source: Google maps, MOSL

16 June 2014

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Wonderla Holidays

Wonderla Bangalore Park

Source: Company, MOSL

16 June 2014

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Wonderla Holidays

Multiple growth drivers

Amusement parks on the cusp of growth

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Wonderla has been successful in increasing footfalls at 9% CAGR over last five years

from 1.61m visitors in FY10 to 2.29m in FY14.

It has developed an in-house manufacturing facility in Kochi to manufacture/construct

amusement rides and attractions, apart from the rides procured from manufacturers

within and outside India.

Introduction of the Bangalore resort transformed Wonderla into a “destination” park,

against “one day” attraction like most other parks in India.

Wonderla has flexi pricing policy. Weekend prices are at 25% premium than weekday

prices. Also festive season prices are at 8-10% premium than regular ones. Company

issues 250 “Fast Track” tickets which command 100% premium over regular prices.

Wonderla has introduced innovative marketing strategy to attract repeat visitors.

Wonderla Privilege Card offers discount in the range of 10-20% for repeat visitors.

Food and Beverages contribute 3-4% of the total revenue for Wonderla. Company has

entered into 25% revenue sharing model with six restaurants, which directly expands

earnings.

1Q and 3Q are the best performing periods for amusement parks. Together they

contribute ~60% of total revenue.

Management believes that an amusement park is not a price sensitive market. It has

been taking 10% price hike every year for the last five years, signifying the brand

equity.

Absence of major competition provides pricing power

As amusement parks are a capital intensive industry, there are very few pan India

players. The industry is divided into three categories:

1. Large parks (investment >INR700m),

2. Medium parks (investment of INR300-700m),

3. Small parks (investment <INR300m).

Wonderla is a large park and there are only 15-16 large amusement parks in India.

As there are no large amusement parks in the locations where Wonderla is situated,

it is a huge advantage for the company. Though there are few small and medium

sized parks in Kochi and Bangalore respectively, they cannot compete with

Wonderla. Management believes that an amusement park is not a price sensitive

market and has been taking 10% price hike every year for the last five years,

signifying the brand equity. The new park coming up in Hyderabad may face

competition from already existing large players like Ramoji Studio. However, as

Ramoji is a film city, it caters to a different set of attraction and thus is not a direct

competitor.

Wonderla has been taking

10% price hike every year

for the last five years,

signifying the brand equity

16 June 2014

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Wonderla Holidays

Competitive landscape of amusement parks

Parks

Location

Size in

acres

Rides

(Dry)

Rides

(Wet)

Pricing Strategy

Entry rate

Annual

Revenues

Average

FY12 (INR

footfalls

m)

(m)

1.8

569

Essel World & Water

Kingdom

Mumbai

64

Y

Y

INR590-690

Separate entry fees for

(For either of

amusement park and water park amusement park

or water park)

Dry Park Package

Separate entry fees for

- 340 Water Park

amusement park and water park

Package - 290

Single entry fees

Single entry fees

Separate entry fees for water

park, snow park

Single entry fees

Single entry fees

Single entry fees as well as pay-

as-you-go

Single entry fees

Single entry fees

Single entry fees

Single entry fees

Single entry fees

Single entry as well as pay-as-

you-go

Single entry fees

Single entry fees

Pay as you go

Single entry fees

INR460 - 600

INR590 - 790

INR300

INR600

INR500

INR450

INR450

INR350

INR200

INR500

INR395

INR360

INR500

INR450

Approx. INR30

per ride

INR300

Nicco Park

Wonder La

Wonder La

Ocean Park

Ramoji Film City

Adventure Island &

Metro Walk

Entertainment City

Kishkinta

Queensland

VGP Universal

MGM Dizzee World

GRS Fantasy Park

Mount Opera

Athisayam

Black Thunder

Appu Ghar

Fun N Food Village

Kolkata

Kochi

Bangalore

Hyderabad

Hyderabad

Rohini

Noida

Chennai

Chennai

Chennai

Chennai

Mysore

Hyderabad ad

Madurai

Mettupalayam

Pune

New Delhi

40

93

83

20

1,666

62

44

120

70

N.A.

27

30

55

40

65

N.A.

10

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

-

Y

1.7

1.2

1.1

N.A.

1.5

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

0.5

N.A.

0.5

311

517

627

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

Source: DRHP, MOSL

Steady growth in footfalls

Wonderla has been

successful in increasing the

footfalls at 9% CAGR over

last five years from 1.61m

visitors in FY10 to 2.29m

visitors in FY14

One of the biggest growth drivers for an amusement park is increased footfalls.

Wonderla has been successful in increasing the footfalls at 9% CAGR over the last

five years from 1.61m visitors in FY10 to 2.29m visitors in FY14. Bangalore Park’s

(being the new market) footfall growth is higher compared to Kochi. Bangalore

market has grown from 0.7m in FY10 to 1.19m in FY14, marking a CAGR of 11%,

while Kochi has grown from 0.89m to 1.1m during the same period, marking a CAGR

of 4%. Types of visitors are categorized as: 1) Educational Institutions, 2) Corporate

houses/Group bookings and 3) General walk-in customers. 60-62% of the Kochi

customers and 70% of the Bangalore customers are walk-in and rest being either

Group booking or institutional visitors.

16 June 2014

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Wonderla Holidays

Kochi park footfall trend

Kochi Park (m)

24%

10%

0%

0.74

0.81

0.82

0.90

10%

-1%

0.89

1.11

6%

1.18

1.21

YoY growth

Bangalore park footfall trend

Bangalore Park (m)

104%

YoY growth

3%

1.10

-9%

0.34

-10%

0.69 0.62

2%

0.63

14%

0.72

28%

0.92

18%

1.08

5%

1.13

5%

1.19

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Source: Company, MOSL

Source: Company, MOSL

Total footfall trend

Total footfalls (m)

39%

26%

1.44

1.08

1.50

-4%

1.53

6%

5%

1.61

2.03

11%

4%

2.26

2.34

2.29

-2%

YoY growth

Consolidated footfall break-up on types of visitors

% Walk-in Visitors

31%

29%

34%

% Institutional Visitors

51%

36%

40%

39%

39%

41%

49%

69%

71%

64%

66%

60%

61%

61%

59%

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Source: Company, MOSL

Source: Company, MOSL

Kochi park - types of visitors

Bangalore park - types of visitors

Type of Visitor for FY14 - Kochi

Type of Visitor for FY14 - Bangalore

Institutiona

l/Group

booking

44%

General

walk-in

56%

Institutional

/Group

booking

39%

General

walk-in

61%

Source: Company, MOSL

Source: Company, MOSL

Flexi-pricing further ensures growth in footfalls

Amusement parks attract

larger crowd on weekends,

thus weekend prices are at

25% premium than week-

day prices

Wonderla has a flexi pricing policy for peak season and offseason to ensure

continuity of footfall in offseason. As amusement parks attract larger crowd on

weekends, prices are at 25% premium than weekday prices. Rates are also

differentiated based on the festive season. Festive season rates quote at 8-10%

premium than regular weekend rates. Festive seasons for Bangalore are Onam,

Dussherra, Christmas and New Years Eve, while for Kochi they are Onam, Ramzan,

Christmas and New Years Eve. Wonderla also offers discounts ranging from 10-30%

for group bookings and corporate booking. It books revenue “net of discounts” and

9

16 June 2014

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Wonderla Holidays

“net of taxes”, thus reflecting prudent accounting. Another innovative pricing used

by Wonderla is “Fast Track” pricing strategy, which commands 100% premium over

regular prices. Company issues 250 tickets per day as fast track tickets, which reduce

the average waiting time for a visitor substantially. Even though average realization

is high in Fast Track prices, Wonderla is planning to limit the number of tickets to

250 per day.

Average realization of ticket sales in Kochi Park

Average Realisation (INR)

14%

10%

YoY Growth

13%

10%

4%

298

327

3%

336

383

423

477

437

423

-3%

FY09

FY10

FY11

FY12

FY13

FY14

FY09

FY10

FY11

FY12

FY13

FY14

440

489

545

598

Average realization of ticket sales in Bangalore Park

Average Realisation (INR)

11%

YoY Growth

11%

10%

Source: Company, MOSL

Source: Company, MOSL

Consolidated average ticket sales realization

Average Realisation (INR)

13%

11%

YoY Growth

12%

356

4%

370

4%

383

FY11

434

482

539

FY09

FY10

FY12

FY13

FY14

Source: Company, MOSL

General ticket prices (INR)

Day

Weekdays

Saturday/Sunday & Public Holidays

Peak Seasons Weekends

Peak Seasons Weekdays

Timings

11:00AM -

06:00PM

11:00AM -

07:00PM

11:00AM -

07:00PM

11:00AM -

07:00PM

Adult

Bangalore

700

870

940

770

Adult

Kochi

580

730

800

650

Child

Bangalore

540

640

710

620

Child

Kochi

470

590

650

530

Source: Company, MOSL

16 June 2014

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Wonderla Holidays

Fast Track ticket prices (INR)

Day

Weekdays

Saturday/Sunday & Public Holidays

Peak Seasons Weekends

Peak Seasons Weekdays

Timings

11:00AM -

06:00PM

11:00AM -

07:00PM

11:00AM -

07:00PM

11:00AM -

07:00PM

Adult

Bangalore

1,400

1,740

1,880

1,540

Adult

Kochi

1,160

1,460

1,600

1,300

Child

Bangalore

1,080

1,280

1,420

1,240

Child

Kochi

940

1,180

1,300

1,060

Source: Company, MOSL

15-17% F&B revenues growth to drive margin expansion

Wonderla has entered into

a revenue sharing

agreement to receive

25% of the revenue as its

share, which directly

improves earnings

Food and Beverages contribute 3-4% of the total revenue for Wonderla. There are

two sources of revenue in F&B segment. First, revenue from its own operating

restaurant and second is the revenue sharing model with other outsourced

restaurants. At both the amusement parks, Wonderla has seven operational

restaurants which offer various cuisines, including South Indian, North Indian,

Chinese and Continental etc. Of the total seven restaurants each in Kochi and

Bangalore, company has taken over the operation of one named Waves Restaurant

at Bangalore and Kochi Park since November 2012 and April 2013 respectively.

Company follows a revenue sharing model with other six contractors for the

operation of restaurants. Wonderla has entered into a revenue sharing agreement

to receive 25% of the revenue as its share, which directly improves earnings.

Outside food is prohibited in the park, though all food items are sold at maximum

retail price inside the park. Food and Beverages revenue is expected to grow at 15-

17% over next three years. F&B realization per visitor has increased from INR12 in

FY09 to INR37 in FY14, clocking 21% CAGR.

Bangalore Park F&B realization per visitor

Kochi Park F&B realization per visitor

Source: Company, MOSL

Source: Company, MOSL

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Wonderla Holidays

Consolidated F&B realization trend

Source: Company, MOSL

List of restaurants in each park

No.

1

2

3

4

5

6

7

Wonderla Kochi

Waves Restaurant (company owned)

Vintage Chimney Restaurant

Spice Garden Restaurant

Wood House Restaurant

Vintage Kitchen Restaurant

Valley View Restaurant

Park View Restaurant

Wonderla Bangalore

Waves Restaurant (company owned)

Chillies Restaurant

Greens Restaurant

Courtyard Restaurant

Parkview Restaurant

Wonder Chick

Pizza Corner

Source: Company, MOSL

Realization growth with addition of new rides

Addition of new rides is the key footfall driver for an amusement park. Addition of

new and innovative attractions not only improves footfall, but also gives Wonderla

huge pricing power advantage. However, to sustain the footfall growth, it is vital to

have additions of new rides/attractions that allure the crowd. Company has been

successful in adding new attractions in both Hyderabad and Kochi parks. In FY14,

Wonderla added four rides (including wet and dry) in Bangalore Park. Going

forward, management believes that it will be able to add a ride annually to keep the

excitement rolling. This ensured a growth in total realization per visitor from INR414

in FY09 to INR652 in FY14, marking 10% CAGR.

Total realization per visitor trend

Average realisation per visitor

507

13%

YoY Growth

570

13%

652

14%

Management believes that

the company will be able to

add a ride annually to keep

the excitement rolling

414

432

5%

450

4%

FY09

FY10

FY11

FY12

FY13

FY14

Source: Company, MOSL

16 June 2014

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Wonderla Holidays

Wonderla Privilege Card - an innovative marketing strategy

80% of the park’s revenue

comes from entry fees and

hence innovative schemes

are needed to ensure

regular footfalls

Company has launched innovative marketing schemes to attract various categories

of visitors. 80% of the park’s revenue comes from entry fees and hence such

innovative schemes are needed to ensure regular footfalls. Amusement parks largely

target the young population between the age group of 15-35 years. 30-40% of

Wonderla’s visitors are either teenagers/student. Wonderla Privilege Card is a

loyalty program whereby visitors are given discounts for repeat visits. The privilege

membership card comes free with a minimum purchase of four tickets at full rate

without any discounts. On the next visit, a visitor enjoys the discount ranging from

10-20% of the ticket price. Currently 10% of company’s ticket revenue comes from

the privilege card. A card holder is eligible for 4 discounted tickets per day. Purchase

of 12 tickets through the card entitles him to a free visit in the park.

Benefit of Wonderla Privilege Card holder

Seasons

Peak Season

Offseason

Period

1st April – 15th June; 16th September – 31st January

16th June -15th September; 1st February – 31st March

Discount

10%

20%

Source: Company, MOSL

Bangalore Resort – making it a destination park

Amusement parks are one-day entertainment concepts in India, whereby visitors

arrive in the morning and leave at the end of day, making the parks a “one day”

attraction. However, with the introduction of company’s resort, it has become more

of a “destination” park. Wonderla launched its first leisure resort by the name

“Wonderla Resort” besides the amusement park in Bangalore in March 2012. The

resort comprises of 84 luxury rooms with amenities including banquet halls, a board

room, conference rooms, a multi-cuisine restaurant, rest-o-bar, a solar heated

swimming pool, recreation area, kids’ activity center and a well-equipped gym. This

resort has complete facilities compared to others -- 24-hour dining facility, LCD

television, Wi-Fi connectivity etc. It has four banquets spread across 8,900sqft,

which can accommodate 800 guests and also has a board room. Thus, the resort can

host multiple events like weddings, corporate meetings, parties etc. Occupancy rate

for FY13 was 34% and for FY14 was 33%. This will enhance the footfall growth going

forward.

With the introduction of

resort, Wonderla has

become more of a

“destination” park, as

against “one day” attraction

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Wonderla Resort - Bangalore

Source: Company, MOSL

In-house manufacturing reduces external reliance and brings innovation

As of January 31, 2014,

Wonderla has

manufactured/constructed

42 rides/attractions

Wonderla has developed an in-house manufacturing facility in Kochi to

manufacture/construct amusement rides and attractions, apart from the

amusement rides procured from manufacturers within and outside India. The in-

house manufacturing facility enables the company to implement ideas and

concepts. For the manufacture/construction of rides, it domestically sources the

required raw materials such as steel, aluminum, ropes, pulleys etc. As of January 31,

2014, company manufactured/constructed 42 rides/attractions. Of the total 55

attractions, Wonderla Kochi and Bangalore has 10 and 18 rides imported

respectively. Balance is either in-house manufactured or domestically sourced. In-

house manufacturing benefits Wonderla with certain cost efficiencies such as saving

on import duties and other costs, besides improving the efficiency in rides

maintenance.

In-house manufacturing/imported rides

Imported rides

Domestically sourced

45

37

10

Kochi

18

Bangalore

Source: Company, MOSL

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1Q and 3Q are seasonally best quarters

1Q and 3Q are the best

performing periods for

amusement parks,

contributing ~60% of the

total revenue for Wonderla

Amusement park is a seasonal business whereby 1Q and 3Q are the best periods

compared to other two. In south, monsoon sets in June and goes on till September.

Thus, footfalls are lower in 2Q. As mentioned above, most visitors are either

students or teenagers and affect footfalls during examination season. Thus, even 4Q

witnesses a slowdown in footfalls. 1Q and 3Q together contribute ~60% of the total

revenue for Wonderla.

1Q and 3Q contribute ~60% of annual revenue

YoY Growth

3%

0.70

-8%

-2%

0.40

0.65

0.54

3%

Q1

Q2

Q3

Q4

Quarterly Footfalls trend (m)

Footfalls (m)

5%

0%

0.76

-4%

0.41

0.63

0.53

6%

19%

29%

17%

35%

FY07

19%

24%

15%

42%

FY08

20%

29%

17%

35%

FY09

23%

23%

18%

36%

FY10

22%

26%

18%

34%

FY11

20%

26%

19%

35%

FY12

21%

25%

19%

36%

FY13

22%

27%

18%

34%

FY14

Source: Company, MOSL

Source: Company, MOSL

Elongated payback period keeps competition at bay

Setting up an amusement park is a capital intensive process. It not only requires

huge investment, but also its payback period is as high as 8-9 years. Hence,

competitive intensity is relatively low. Post conception of an idea to set up an

amusement park, it requires 6-12 months for the paperwork and obtaining

approvals to begin construction. Post that, 20-24 months are needed for

construction and the park to be fully operational. Time required for initial paper

work itself can get stretched depending on the states approvals. For example,

Wonderla Hyderabad Park took six to seven months of initial paper work; final

approvals are still pending and land for Chennai Park is yet to be acquired.

Post initial paper work, 20-

24 months are needed for

construction and the park

to be fully operational

High safety and hygiene standards ensure visitors satisfaction

Maintaining high safety standards is the primary requirement for any amusement

Wonderla’s management

park. Clean and hygienic environment ensures high customer satisfaction and repeat

has kept hygiene and safety

visits. Wonderla’s management has kept hygiene and safety a top priority to enrich

as top priority to enrich the

the experience of visitors. Company has set up extensive water filtering at Wonderla

experience of visitors

Bangalore and Wonderla Kochi and recycling systems for each pool and a quality

control laboratory for the purpose of carrying out quality checks on samples of

water collected at regular intervals. It has also installed lightning arrestors as a

precautionary measure against lightning hazards. Apart from this, to ensure

continuous supply of power, company has generators with a combined capacity of

4.9mva to ensure continuous supply of power. Thus, these facilities together ensure

an enriched experience for visitors.

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New properties to drive long term growth

Wonderla Hyderabad and Chennai set to maintain growth momentum







Wonderla is in the process of setting up its third amusement park in Ranga Reddy

District of Hyderabad, which is ~27kms from central Hyderabad, 33kms from

Secunderabad Railway Station and 12kms from Hyderabad Airport. The park is

expected to be operational from FY17.

Company has already acquired 49.5 acres of land, of which it intends to develop 27

acres with 24 dry rides and 18 wet rides.

Wonderla plans to continue to expand business operations and further develop its

brand ‘Wonderla’ by setting up new amusement parks in other parts of India. Thus,

management is in the process of identifying a suitable parcel of land in Chennai for

setting up amusement parks.

Wonderla Hyderabad – a new attraction

In Hyderabad, Wonderla is

planning to develop 10

imported land rides, 14

indigenous land rides and

18 indigenous water rides

Company is in the process of setting up its third amusement park in Ranga Reddy

District of Hyderabad, which is ~27kms from central Hyderabad, 33kms from

Secunderabad Railway Station and 12kms from Hyderabad Airport. The park is

expected to be operational from FY17. Company has already acquired 49.5 acres of

land of which it intends to develop 27 acres with 24 dry rides and 18 wet rides.

Wonderla is planning to develop 10 imported land rides, 14 indigenous land rides

and 18 indigenous water rides. Acquired land is freehold and free of all charges.

Company needs INR2.1b to develop the Hyderabad Park; of which INR1.7b is raised

from the IPO and balance INR480m will be sourced through debt. Management has

guided for 0.7m footfalls in the first year.

Detailed cost of Hyderabad Park

No.

1

2

3

4

5

6

7

Particulars

Land, land development and civil

construction

Amusement rides

Machinery and equipments

Furnishing and vehicles

Consultants fees

Pre-operative expenses

Contingencies

Total

Cost

(INR m)

994

1,067

261

114

24

63

38

2,560

Amount already

deployed (INR m)

255

97

1

2

4

19

-

377

Balance funded through

IPO proceeds and Debt

739

970

261

113

20

44

38

2,183

Source: Company, MOSL

Wonderla Chennai in pipeline

Management is in the

process of identifying a

suitable parcel of land in

Chennai to set up

amusement parks

Company intends to expand its business operations and develop its brand

‘Wonderla’ by setting up new amusement parks in other parts of India and thereby

cater to a wider customer base. It plans to capitalize on experience and expertise in

the amusement park industry and leverage the existing goodwill associated with the

brand to establish and expand amusement parks in newer geographies. Hence,

management is in the process of identifying a suitable parcel of land in Chennai for

setting up amusement parks. The project approval for Hyderabad Park is in the final

stage, while company is in the process of identifying land in Chennai.

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Financial Outlook

Revenue expected to grow at 21.7% over FY15E-17E

We expect company’s revenue to grow at 21.7% CAGR from INR1.8b in FY15E to

INR2.6b in FY17E. The growth in revenue will be primarily driven by increase in

footfalls by Hyderabad park.

Sales growth trend (INR m)

Sales

YoY Growth

30%

22%

11%

1,131

1,379

1,536

16%

1,783

14%

2,025

2,642

Source: Company, MOSL

PAT to grow at 19% CAGR over FY15E-17E

With the addition of Hyderabad park margins are initially expected to dip from

46.3% in FY15E to 45% in FY17E. PAT is expected to grow at 19.3% CAGR from

INR477m in FY15E to INR679m in FY17E.

EBITDA trend (INR m)

EBITDA

49.3%

45.8%

704

826

946

46.3%

46.7%

45.0%

1,189

YoY Growth

PAT growth trend (INR m)

PAT

19%

11%

300

335

399

477

YoY Growth

28%

20%

11%

532

679

45.6%

558

628

Source: Company, MOSL

Source: Company, MOSL

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Key management team

Experienced board



Mr. George Joseph



Mr George Joseph, Chairman, Non-Executive Director (Independent):

Mr George Joseph was appointed as an additional Director of the company on

June 27, 2011 and as Director and Chairman on September 12, 2011. He holds a

bachelor’s degree in commerce from Kerala University. He is a Certified

Associate of the Indian Institute of Bankers and an Associate of the Institute of

Bankers, London. Prior to being appointed on board, he acted as chairman and

managing director of Syndicate Bank and worked in Canara Bank for over 37

years in various capacities from 1969 to 2006. He is also the non-executive

independent director of Muthoot Finance Ltd.

Mr Kochouseph Chittilappilly, Non-Executive Director:

Mr Kochouseph

Chittilappilly is one of the promoters and has been a Director since

incorporation. He holds a post graduate degree in physics from Calicut

University. He has 15 years of experience in the amusement park industry. He

and Parks Ltd in Kochi, Kerala and later expanded the amusement park business

by establishing Wonderla in Bangalore in 2002. He is also the chairman of

V-Guard Industries Ltd and director on the board of several other companies.

Mr Arun Kochouseph Chittilappilly, Managing Director:

Mr Arun Kochouseph

was appointed as the Director on December 22, 2003. He has been the

Managing Director since April 1, 2012. He holds a masters degree in industrial

engineering from Swinburne University of Technology, Victoria, Australia. He

has been actively involved in the day to day operations and management of the

company since 2003. He has over 11 years of experience in the amusement park

industry.

Mr Ramachandran Panjan Moothedath, Non-executive Independent Director:

Mr Ramachandran Panjan Moothedath was appointed as the Director on August

9, 2012. He holds a diploma in financial management from University of

Mumbai. He had set up Jyothy Laboratories in 1983 as a sole proprietorship firm

and is currently the chairman and managing director of Jyothy Laboratories Ltd,

the managing director of Jyothy Fabricare Services Ltd and director on the board

of four other companies. He has over 31 years of experience.

Ms Priya Sarah Cheeran Joseph, Whole-time Director:

Ms Priya Sarah Cheeran

Joseph was appointed Director on December 22, 2003. She was appointed as a

non-executive director of the company from March 1, 2013. She holds a post

graduate degree in public health from University of Melbourne, Australia. She

has been involved in the operations of food and beverages and human resource

departments of the company since 2005, when it started commercial operation.

She is also actively involved with the corporate social responsibility related

initiatives of the company. She has over 11 years of experience in the

amusement park industry.

Mr. Kochouseph Chittilappilly



Mr. Arun Chittilappilly





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Key risks



Accidental risk:

Any occurrence of accidents or mishaps at amusement parks

exposes the company to possible financial liabilities and legal proceedings

resulting in adverse publicity for the company. These developments include

legal proceedings and third party claims etc. However, as per our interaction

with the management, so far only six to seven casualties have happened of

which five were due to cardiac arrest. Only one case is pending disposal.

Concentrated revenue stream:

Wonderla generated 85% and 83% of income

through entry fees in FY13 and FY14 respectively. Thus, a large portion of the

revenue is dependent on the income generated from the sale of entry tickets as

opposed to the sale of merchandise, food and beverages. Any competition

which forces the company to reduce ticket prices will have an adverse impact on

financials.

Reduction in consumer discretionary spending:

Visiting amusement parks is a

part of discretionary spending and is perceived to be a leisure activity. Thus, its

business is dependent on factors influencing the discretionary spending. Any

adverse change in economic condition which leads to decrease in discretionary

spending can affect the business substantially.

Inability to find locations to open and operate amusement parks:

Future

growth

of the company resides in opening of amusement park in different

locations. However, inability to find locations to open and operate amusement

parks on commercially viable terms and successfully acquire the requisite land

could adversely affect the business model.

Dependence on South India cities:

Company generates revenue primarily from

the southern Indian city visitors as its amusement parks are situated in South

India. If southern India experiences an event negatively affecting its economy,

such as a local economic downturn, a natural disaster, a contagious disease

outbreak or a terrorist attack etc, company’s business will be significantly

affected.









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Industry overview

Indian amusement park industry yet to reach a peak

Indian amusement park industry still at nascent stage

Indian amusement park

industry is growing in terms

of footfalls though still at

very nascent stage

compared to its global

peers. It witnesses an

annual footfall of ~58-60m

The size of amusement park industry in India is estimated to be ~INR26b with ~150

amusement parks in India. Indian amusement park industry started with Appu Ghar

in 1984. In late 90’s other large players like Essel World and Nicco Park started their

operations in Mumbai and Kolkata respectively. Indian amusement park industry is

growing in terms of footfalls though still at a very nascent stage compared to its

global peers. It witnesses an annual footfall of ~58-60m. The primary drivers to

attract footfalls are size of the park, proximity of location and innovative offerings.

Water parks are more popular in India due to the hot and humid weather. Industry

is segmented into three categories of parks: large parks (>INR70m capex), medium

parks (INR30m-70m capex) and small parks (<INR30m capex). Footfalls depend on

the size of park ranging from >0.5m for large parks to <0.3m for small parks.

Top 25 amusement parks of the world and Wonderla

Source: Theme Index Report, MOSL

Industry segmentation

Parameters/Classification

Capex (INR)

Area Covered

Average Ticket price (INR)

Footfalls

Location

Large parks

>70m

>40 acres

>400

>0.5m

Metros and

outskirts

Medium parks

30-70m

10-40 acres

250-400

0.3-0.5m

Outskirts of Metros,

Tier I cities

Small parks

<30m

<10acres

~250

<0.3m

Tier II cities, small towns,

outskirts of metro and

Tier I cities

Few Players

Essel World (Mumbai),

Nicco

GRS Fantasy Park

Park (Kolkata),

(Mysore), Ocean Park

Wonderla (Kochi

(Hyderabad)

& Bangalore), Kishikinta

(Chennai)

16-18

40-45

Fun N Food Kingdom

(Dehradun)

Number of Parks

85-95

Source: Company, MOSL

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Tourism sector and leisure spend to increase substantially

Domestic tourism industry

posted 13% CAGR in the

past six to seven years.

It is expected to increase

from USD77b in CY11 to

USD89b in CY20

The domestic spend on tourism in India is expected to rise significantly which is the

one of the biggest growth driver for the industry. Domestic tourism industry has

clocked 13% CAGR in past six to seven years. It is expected to increase from USD77b

in CY11 to USD89b in CY20. With rising income levels, Indians are spending more on

tourism related activities. Holidaying, leisure and recreation related tourism

constitutes major part of the domestic tourism. Local residents form majority of the

footfall (84%) followed by domestic tourist, which form 15%. Foreign tourism

constitutes negligible part, <1%, of total visitors in the park.

Local residents form maximum % of footfalls

89.1

77.1

65.4

Domestic

tourist, 15%

Domestic spend on tourism to rise significantly till CY20

USD (b)

Type of Visitor

Foreign

tourist, 1%

34

39.6

45.6

52.6

56.2

CY05

CY06

CY07

CY08

CY09

CY10

CY11

CY20E

Local

Residents,

84%

Source: Ministry of Tourism, MOSL

Source: E&Y Report, MOSL

Large flow of investment expected to be deployed in next 3-4 years

A total pile of INR175b

worth of investment is

expected to be deployed in

12 major projects over next

three to four years

With an increase in tourism, amusement park industry is expected to be the large

beneficiary. A total pile of INR175b worth of investment is expected to be deployed

in 12 major projects over next three to four years. One of the most-awaited

projects is coming up in Surat spread across mammoth ~3,200 acres of land. The

investment in this project is expected to be INR95-100b, making it the biggest

amusement park in India. Some of these large projects may avail viability gap

funding from state governments. Most projects are expected to come up in Tier 2

and 3 cities due to difficulties faced in land acquisition. A total addition of 4,500

acres of capacity in next three to four years will be one of the major drivers for the

industry. As per the report published by CARE, 10-15% of the footfall growth is

expected, which will drive footfalls to 78-80m by FY18. Revenue is expected to

grow by 15-18% on account of rising footfalls and increased spend on other items

like food and beverages, spas etc.

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Huge project pipeline across India

Estimated Project

Location

Promoter/JV

Investment

(INR b)

Year of

Completion

Size

Theme/attraction

(Acres)

Glass-enclosed underwater tunnels having

3,000 kinds of marine animals. Will replicate

the Sea World park in USA. Will have

attractions like dolphins, theme restaurants,

school about animal life lessons, etc.

Theme parks based on concepts like Jurassic

Park, Terminator and Spiderman.

India's first Hollywood theme park.

India's first edutainment theme park. Already

under construction.

A replica of Disneyland, phase I - 21

international standards rides including India's

largest roller coaster and 4D stimulation

rides, phase II and III - water park and a 3-

star hotel. Phase I scheduled to open in the

first half of 2013.

Amusement park combined with a five star

hotel.

Embedded with water park

Come back of India's first amusement park,

will include amusement park, water park,

FEC, themed retail complex,

Sea World

Proposed by GoM,

Singhudurg,

to be undertaken on

Konkan,

PPP basis, parties

Maharashtra

yet to be decided.

Nagpur,

Maharashtra

Lavasa,

Maharashtra

Lavasa,

Maharashtra

Landmark

Entertainment

MGM - Lavasa

Space Investment

Company - Lavasa

5 - 5.1

2015

150

Theme Park

MGM Lavasa

Hollywood Theme

Park

Spaceworld Theme

Park

15

Early stages of

planning

2014

300

4.5

75

4

2013

65

Adlabs Imagica

Khopoli,

Maharashtra

Adlabs

Entertainment

16

2013

297

Wonderla

Wonderla

Appu Ghar

Hyderabad,

Wonderla Holidays

Andhra Pradesh

Chennai, Tamil

Wonderla Holidays

Nadu

Gurgaon,

Haryana

Surat, Gujarat

International

Amusement Ltd

Atlanta Ltd

2.3

N.A.

4

2015

2015

2013

46

N.A.

58

Surat Theme Park

95 - 100

2014-2016

One of Asia's largest theme parks and may be

3,200 bigger than Disneyland in California, Paris

and Tokyo.

Will be set up to spread the awareness of

vedic heroes (Ram, Krishna, Hanuman, etc).

Contains two temples, a 4-D theatre, expos,

puppetry workshops, story-telling for

children and costume shows. Already under

construction.

A mega tourism city comprising of themed

retail, golf course, water park, FEC, resorts,

villas, etc. Already under construction.

A recreational cum amusement park having

various amusement and water rides for kids

and adults. Parties yet to be decided.

Krishna Lila Theme

Park

Bangalore,

Karnataka

ISKCON

(International

Society for Krishna

Consciousness)

3.5

2016-17

28

Jaipur Mega

Tourism City

Jaipur,

Rajasthan

International

Amusement Ltd

25

Early stages of

planning

300

Naya Raipur

Amusement Park

Proposed by NRDA,

Naya Raipur, to be undertaken on

Chhattisgarh

PPP basis, parties

yet to be decided.

50:50 JV of

International

Amusement Ltd

and Unitech

50:50 JV of

International

Amusement Ltd and

Unitech

0.23

Early stages of

planning

40

Adventure Island

and Metro Walk

Rohini, Delhi

2-3

Completed

62

Amusement park spread over 24 acres, retail

mall of 200,000 sq ft

Entertainment City

Phase I

Noida, Delhi

10 - 11

Phase I

completed,

Phase II

expected

completion

147

A mega complex area having amusement

park (Worlds of Wonder), retail space and

health club, small water park, shopping mall

with a 5-star hotel.

Source: DRHP, MOSL

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Ticket sales contribution to revenue high compared to global peers

Almost 75-85% of the

revenue comes from the

sale of tickets. Share of F&B

is 15-20%, which is lower

than global peers

Ticket sales form the major source of revenue stream for amusement parks in India.

Almost 75-85% of the revenue comes from sale of tickets. Share of F&B is 15-20%,

which is lower than global peers. Resort and rentals revenue currently form

negligible portion of the revenue (~2%), which is expected to increase as visitor

preferences change and amusement parks become more of a destination tourism

than a single day entertainment. Globally, entry fee, food and beverages and resorts

and rentals contribute similar proportion to revenue.

Contribution from various revenue streams

Stream of Revenue

Entry Fees/Ticket Sales

Food & Beverages

Gifts, Souvenirs and other retail items

Sponsorships and advertisement

Resort, Banquets, Lawns etc

Miscellaneous Rentals

% Contribution to

overall revenue

75-80%

15-20%

3-4%

<1%

<1%

<1%

Description

As most of the amusement parks in India deploy ‘single ticket for entry’,

entry fee has a considerable contribution

As most of the amusement park visits are day long, food and beverages

consumption is considerable. However much lower than its globally peers

Items like clothes, caps, bags, goggles, cosmetics along with souvenirs

especially for the outstation visitors.

Selling the free space for advertising

Overnight stay as well as corporate events

Photo and video shooting, concerts live shows, wedding receptions and

other events. Most of the water parks provide swimming costumes and

locker facility for a charge

Source: Company, MOSL

Revenue composition in India

Revenue composition globally

India

F&B

Merchandis

ing

34%

Global

Entry Fees

33%

F&B

Merchandis

ing, 18%

Entry

Fees, 20%

Resort and

Rentals, 2%

Resort and

Rentals

33%

Source: DRHP, MOSL

Source: DRHP, MOSL

Favorable demographics for growth of industry

India, being one of the

youngest countries in the

world with the median age

of 26.5 years, has majority

of its population between

15-59 years, which will be

the biggest growth driver

for the industry

Amusement parks are targeted to attract young generation. India, being one of the

youngest countries in the world with the median age of 26.5 years, has majority of

its population between 15-59 years, which will be the biggest growth driver for the

industry. Countries like the US, Japan and China have older population with median

age of 37.1 years, 45.4 years and 35.9 years respectively. As per the study conducted

by E&Y, in India, children are the key influences for amusement and theme parks

visits. They generally come to parks in school groups or with families. But they

constitute only 25% of the park visitors and balance 75% are adults. In India, around

28.50% of the population lies in the age group of 0-15 years, 63.40% in 15-59 years

and 8.10% in 60 years and above, respectively.

23

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India has the youngest population of the world

Children influence adults to visit parks

Age wise distribution India (2011)

60+ yrs

8%

Visitors age profile

Children

, 25%

15-59yrs

29%

0-14yrs

63%

Adults, 75%

Source: DRHP, MOSL

Source: DRHP, MOSL

Industry concentrated with few larger players

Amusement park industry

in India is highly

concentrated with larger

players like Essel Group,

Nicco Park and Wonderla

constituting most of

the market

Amusement park industry in India is highly concentrated with larger players like

Essel Group, Nicco Park and Wonderla constituting most of the market. Most of the

theme parks have both dry rides and wet rides. Amusement parks across India offer

varied experience to users ranging from dry rides, wet rides, snow parks, resorts,

shopping malls etc, though most of the rides remain similar in nature. Parks have

different pricing strategy. Large parks like Essel World in Mumbai and Nicco Park in

Kolkata charge separately for their water parks, while in others like Wonderla

Bangalore and Kochi, Kishkinta in Chennai, dry and wet rides can be accessed on the

same ticket. Encouraged by the global parks, Wonderla and Ramoji have come up

with resorts making amusement park a “destination park” as against “one day

attraction” like peers. Pricing strategy also differs across parks. Large parks in India

have predominantly adopted ‘pay one price’ wherein the customer is entitled to

unlimited use of rides after paying a single entry fees. Worlds of Wonder in

Entertainment City, Noida provides both the options of ‘pay-one-price’ and ‘pay-as-

you-go’.

16 June 2014

24

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Wonderla Holidays

Annexure

Products and services offered at amusement parks in India

Products/Services

Constituents

Giant wheels

Amusement Park -

Dry Rides

Merry-go-round

Toy trains

Rides

Swings

Video games

Virtual games and

indoor activities

Bowling

Car race

air-hockey

Snow park

Skiing

Skating with other rides

Water Park

Water rides

Water Park

Waves pool

Swimming pool

Rain Dance floor

Food and beverages

Restaurants

Spa

Spa and health club

Aromatherapy

Body massage

Other recreational Services

Lodging

Resort

Restaurant Separate

payment

Banquet Hall

Golf course

Golf course

Sports

Shopping Mall

Gift store

Tournaments resort

General Merchandise

Gifts

Separate payment sometimes complementary

with resort

Separate payment sometimes complementary

with

Separate Payment

Separate payment

Separate payment, sometimes complementary

with amusement park or resort

Not included in entry fees

Separate entry fee, combined package or

complementary with other rides. Generally

separate rent is charged for swimming costumes.

Separate entry fee, combined package or

complementary with other rides

Primarily included in the entry fees, sometimes

as pay-as-you-go

Primarily included in the entry fees, sometimes

as pay-as-you-go

Fees structure

16 June 2014

25

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Wonderla Holidays

Financials and valuations

Income statement

Y/E March

Net Sales

Change (%)

EBITDA

EBITDA Margin (%)

Depreciation

EBIT

Interest

Other Income

Extraordinary items

PBT

Tax

Tax Rate (%)

Reported PAT

Change (%)

Min. Int. & Assoc. Share

Adj Cons PAT

2012

1,131

26.2

558

49.3

116

442

11

14

0

445

144

32.4

300

0.9

0

300

2013

1,379

21.9

628

45.6

119

510

22

13

0

501

166

33.2

335

11.4

0

335

2014

1,536

11.4

704

45.8

132

572

16

24

0

579

180

31.1

399

19.2

0

399

2015E

1,783

16.1

826

46.3

166

659

10

65

0

714

237

33.2

477

19.6

0

477

(INR Million)

2016E

2,025

13.6

946

46.7

207

739

0

55

0

794

262

33.0

532

11.5

0

532

2017E

2,642

30.5

1,189

45.0

245

944

0

70

0

1,014

334

33.0

679

27.7

0

679

Balance sheet

Y/E March

Share Capital

Reserves

Net Worth

Debt

Deferred Tax

Total Capital Employed

Gross Fixed Assets

Less: Acc Depreciation

Net Fixed Assets

Capital WIP

Investments

Current Assets

Inventory

Debtors

Cash & Bank

Loans & Adv, Others

Curr Liabs & Provns

Curr. Liabilities

Provisions

Net Current Assets

Total Assets

2012

420

518

938

225

34

1,197

2,078

868

1,210

44

0

143

18

2

25

98

200

97

104

-57

1,197

2013

420

795

1,215

85

2

1,302

2,426

986

1,440

57

0

172

28

5

29

110

367

246

121

-195

1,302

2014

420

1,079

1,499

203

33

1,736

2,573

1,118

1,455

201

0

347

33

3

200

110

267

126

141

80

1,736

2015E

435

3,122

3,557

0

33

3,590

3,753

1,285

2,468

53

0

1,421

50

4

1,246

121

352

183

169

1,069

3,590

(INR Million)

2016E

2017E

435

435

3,527

4,054

3,962

4,488

0

0

33

33

3,995

4,522

5,233

5,433

1,491

1,737

3,741

3,696

40

53

0

0

622

1,297

56

77

5

6

428

1,067

133

148

409

524

206

281

203

244

213

773

3,995

4,522

E: MOSL Estimates

16 June 2014

26

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Wonderla Holidays

Financials and valuations

Ratios

Y/E March

Basic (INR)

EPS

Cash EPS

Book Value

DPS

Payout (incl. Div. Tax.)

Valuation(x)

P/E

Cash P/E

P/BV

EV/Sales

EV/EBITDA

Dividend Yield (%)

Profitability Ratios (%)

RoE

RoCE

Turnover Ratios (%)

Asset Turnover (x)

Debtors (No. of Days)

Inventory (No. of Days)

Creditors (No. of Days)

Leverage Ratios (%)

Net Debt/Equity (x)

2012

7.2

9.9

22.3

1.5

24.4

2013

8.0

10.8

28.9

1.5

22.0

2014

9.5

12.6

35.7

1.5

18.5

20.8

15.7

5.5

7.3

15.9

0.8

36.5

44.4

0.9

0.6

5.9

61.4

0.2

31.1

42.5

1.1

1.3

7.4

119.6

0.1

29.4

39.7

0.9

0.8

7.9

55.2

0.1

2015E

11.0

14.8

81.9

2.0

21.3

18.0

13.4

2.4

5.6

12.0

1.0

18.9

27.5

0.5

0.8

10.2

69.7

0.0

2016E

12.2

17.0

91.2

2.5

23.9

16.2

11.6

2.2

5.3

11.4

1.3

14.2

21.1

0.5

0.8

10.1

69.7

0.0

2017E

15.6

21.3

103.3

3.0

22.5

12.7

9.3

1.9

3.8

8.5

1.5

16.1

24.0

0.6

0.8

10.6

70.5

0.0

Cash flow statement

Y/E March

OP/(Loss) before Tax

Depreciation

Others

Interest

Direct Taxes Paid

(Inc)/Dec in Wkg Cap

CF from Op. Activity

(Inc)/Dec in FA & CWIP

(Pur)/Sale of Invt

Others

CF from Inv. Activity

Inc/(Dec) in Net Worth

Inc / (Dec) in Debt

Interest Paid

Divd Paid (incl Tax)

CF from Fin. Activity

Inc/(Dec) in Cash

Add: Opening Balance

Closing Balance

2012

445

116

0

11

-139

18

447

-392

0

4

-388

0

46

-11

-73

-37

22

3

25

2013

501

119

0

22

-151

-3

486

-374

0

3

-371

0

-15

-23

-73

-111

4

25

29

2014

579

132

0

16

-180

-66

482

-291

0

0

-291

0

118

-16

-74

-19

172

29

201

2015E

714

166

0

10

-237

57

711

-1,033

0

0

-1,033

1,682

-203

-10

-102

1,367

1,046

201

1,246

(INR Million)

2016E

2017E

794

1,014

207

245

0

0

0

0

-262

-334

38

79

776

1,004

-1,467

-212

0

0

0

0

-1,467

-212

0

0

0

0

0

0

-127

-152

-127

-152

-818

639

1,246

428

428

1,067

E: MOSL Estimates

16 June 2014

27

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Wonderla Holidays

This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision

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Disclosure of Interest Statement

1. Analyst ownership of the stock

2. Group/Directors ownership of the stock

3. Broking relationship with company covered

4. Investment Banking relationship with company covered

WONDERLA HOLIDAYS LTD

No

No

No

No

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