UFO Moviez India Ltd

Dear Shareholders,

We are pleased to share that UFO has delivered another year of steady performance. We delivered 11 % advertisement growth during the fiscal year 2019. Our cash flow generation continued to remain healthy and Capex intensity remained low. We also declared a 300% dividend for the year, which included a one-time special dividend of 150% in view of the availability of cash with the Company.

Looking forward, we are confident of delivering sustained growth in the medium to long term. The Indian economy is expected to remain the fastest growing major economy in the world on the back of digitization, globalization, favourable demographics and reforms. The Government through the past Union budgets has also been providing a consumption push which will result in higher demand. Consumer behavior and expenditure patterns will continue to shift and correspondingly result in increase in advertising spends. In this scenario, we believe that there will continue to be tremendous growth prospects in India.

UFO's in-cinema Advertisement platform will continue to benefit from these trends as India is expected to become the third largest consumer economy in the World by 2025. We will continue to focus on driving advertisement revenue growth driven by increasing inventory utilization and realizations. The measurement and research on cinemas which was institutionalized will help in further deepening customer engagement. Advertisers prefer credible research that provides footfalls, consumer data and profiles. Hence, this data will drive advertiser interest and enable brands to take better informed investment decisions.

On the Scheme of Arrangement and Amalgamation between UFO and Qube, the petition for the merger with Qube was dismissed by NCLT in January and subsequently we started exploring alternate options to combine UFO and Qube. However, on account of the current market conditions and decline in our stock price, the comparative value of Qube requires a similar write down which is not in line with the expectations of the shareholders of Qube. Hence at this stage there is a standstill. However, the Managements and Promoters of both companies are convinced of the benefits of the unified operations and will continue the efforts to unify both Companies.

Finally, on behalf of the Board of Directors, we would like to take this opportunity to express sincere gratitude toall our stakeholders for their continued interestand faith in UFO. Many thanks toall our shareholders for their unconditional support. A special appreciation to all our employees for their vigorous efforts and commitment that have helped in making UFO a prominent Digital Cinema and In-Cinema advertising service provider in India. We look forward to continuing this journey and achieving bigger dreams together in the future.