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EROSINTERNATIONALMED DIALIMITED

CorporatePresentation F b February 2013

TableofContents

SectionI: ErosGroupOve erview SectionII: CompanyOverv view SectionIII:DiversifiedandSustainableBusinessModel SectionIV:GrowthDrivers s SectionV:BusinessOverv view SectionVI:FinancialHighlights SectionVII:SectionVII:Str rategicTieup HBO

SectionI:ErosGroupOvervie Overview w

ALeadingGlobalIndianFilmEnte ertainmentCompany

1,100+filmsanddigitalrightsto

an additional700film ms
70+newreleases speryearforthe

last3years
25differentlangu uages Digitizedcontentincludingmusic Multichannelglo obaldistribution

( (50+ countries) )
Valueenhancingplatformssuch

asErosNow

Pioneer&InnovatorinIndianFilm medEntertainment
New initiatives: Launch of YouTube channel First to o adopt vert tically integrated model VOD agreement with Comcast Listed EIML on the BSE and NSE(2)

Launch of first digital Bollywood TV network B4U Early adopter of DVD distribution Began acquiring international IP rights for Indian content Ayngaran Tamil acquisition First Indian media compan ny to list on Established global distribution network outside India Londonxx xxxxxxx (AIM) raisin ng $150m

1977

1981

1982 1998

1999

2006

2007 2008

2010 2012

TheErosAdvantage
AgloballeaderinIndianfilmedentertainment
Leading box office market share in Indian films worldwide Deep talent relationships developed over 35 years

1,100+ film library, digital rights to an additional 700 films and 70+

LargestIndiancontentlibraryoffilms&music

new films per year for the last 3 years Music & music videos

Unparalleledglobaldistributionnetwork

Spans 50+ countries Theatrical, TV & digital distribution

Highgrowthdomesticmedia&entertainmentmarketwith structuralupside

Film industry $2.2B market with projected 11.5% CAGR(1) TV industry $7.4B market with projected 18.0% CAGR(1)

Acceleratedfilmmonetization

Portfolio approach / pre-sales de-risk film investments Target new releases to be cash flow positive after year 1

Wellpositionedtoexploitattractivenewopportunities

(1) Market size as of 2012 and projected CAGR from 2013 2017 CAGR Source: Company filings, FICCI KPMG 2013

EstablishedBrandwithLeadingMarket M Share
2009 2010: 3 of top 10 films each year India Leading mark ket share #1 over the last 30 years

USA

UK

$22.9M

Yashraj Viva 2% 6% UTV 18%

Other rs 5%

Tip Top / B4U 9%

Others 7%

$21.7M

Reliance 24%

$17.0M
Reliance e 24%

Eros 45%

Yashraj 5%

UTV 10%

Eros 45%

$12.8M

2011b boxoffice ffi


(1) Market share data based on gross box office collections Source: http://www.boxofficeindia.com, Nielsen EDI Box office data, Rentrak, Company filings

2011Sh Share(1)

SectionII:CompanyOverview w

OperatingActivities
ContentAggregation IPROwner O MaximumMonetization

StrongBala anceSheet Coproduction Scaleof mo orethan75 moviesp.a. 1 100mov 1,100 vieLibrary Acquisition Unpara alleled di ib i nnetwork distribution k

IndiaTheatrical TVSyndication NewMedia/Music/ Others NewInitiative EROSNOW HBO

LowRiskContentSourcingStrategy

AsaleadingplayerwithintheIndianfilmconten ntanddistributionsector,Eroshasdeeprooted relationshipswithtalentandproductionhousesgoingbackthreedecades EroshasadisciplinedGreenlightprocessforapprovaloffilmprojects


Greenlight boardconsistsofErosexecutivesthat t runbusinessinIndiaandabroad Greenlight boardexecutesathoroughreview woffilmprojectsbasedonthefollowingcriteria:

C ti criteria Creative it i
ProducerandDirectorskillandtrackrecord Moviescript StarCast,Actorsandfitforrole Genreofmovieandlikelyresonancewithaudiences Tentativereleasedateandfitwithoverallslate

Fi Financial i lcriteria it i
Priortrackrecordofactor/directorwiththatgenre

ofmovie
Returnsonpreviousfilms Expectedreturnoninvestment Budgetoffilm Fixedprice/budgetcap

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LowRiskContentSourcingStrategy
AcquisitionsandCoproductionarrangementsen nsureaccesstotopqualitycontentatfinancially attractiveterms

TypicalAcquisitionArrangement

TypicalCoproductionArrangement

Early acquisition of film at a negotiated price 15 20 year rights First position recoupment of 20% fixed profit on all gross revenues, followed by all P&A costs, entire Minimum Guarantee Price and the remaining profit is shared in pre-agreed ratio

Pre-agree budget, star cast, script with coproducer

IPR rights in perpetuity Agree fixed production fee and over-budget cap First position recoupment of 20% fixed profit on all gross revenues, followed by all P&A costs, followed by entire Investment, and the remaining profit is shared in pre-agreed ratio

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Unparalleledmarketposition
LargestlibraryofIndianentertainment 1,100+titles Exploitationofoldcontentonnewplatforms s Stable,recurringcashflows Well W llestablished t bli h ddi distribution t ib ti network t k Theatre/TV Internetandmobile Music/Radio/Ringtones g /Print Longtermrelationshipwithtalent Mutuallyadvantageousandlongterm partnershipswithfilmtalentovermanyyears TimelyexecutionoftalentdealsgivesErosInte ernationala significantcompetitiveadvantage

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SectionIII:DiversifiedandSus stainableBusinessModel

13

SuccessfulMultiPlatformCont tentMonetizationModel
Newreleasecontent

Librarycontent

Co-production: 20 year exclusive rights + perpetual copyrights Acquisition: 5 20 year rights

1,100+ films and digital rights to an additional 700 films Attractive multi-platform rights

Theatrical

Television

Digital

SVOD/VOD

Music/Publishing

Ancillary
In-flight

entertainment

DVDs Radio

Ringtones gto es

Hotels

Note: Companies shown above are a selection of our relationships

MitigateRiskandMaximizeCashFlow
Portfolioapproachtofilms slateby budget,genre&langua age

Minim mize cap pital risk k

Pre ver35% P sales l of fmovie i rights i h cov 67%offilmdirectprodu uction costs(1)

Maximize cash

flows & library value

Bundlingofcontentforlic censingto cablenetworks&broad dcasters

(1) For major (high budget) films released in fiscal 2012. Major films refer to o films with direct production costs in excess of Rs 45 crs Source: Company filings

MaximizeMonetizationThroughthe t ReleaseWindows
Eros generates revenues across all phases of the film rele ease cycle Indian theatrical & DVD release windows are short Limited DVD market exposure Print & advertising expenditure for major films typically com mprise 10% - 15% of production costs Further monetization windows from launch of Eros Now

FilmRelease&Mo onetizationTimeline
Pre-sales window (Theatrical, TV, Music)

Di it l E Digital Exploita l itation ti Ancillary including postrelease music Pre-prod P d/ Planning / Casting / Scripting

Principal Photography

PostProduction / Completion

Music Release

Theatrical T R Release (TR)

DTH Eros Library DVD Distribution

Eros HBO

Satellite TV Licensing

18 months before TR

12 months before TR

6 months before TR

3 months before TR

TR

1 month from TR

3 months onwards

1 year onwards

Note: Major (high budget) films refer to films with direct production costs in excess of $8.5 million. Source: Company filings

AcceleratedFilmMonetization
Illustrative Major Film Example

Cumulative cash flows

$8 5+ M initial $8.5+ investment P&A costs are ~20% Target new releases to be cash flow positive by year 1 TV cycle anticipated every 4 to 5 years

Year

-2 2

-1 1

1 5 6 - 10 1-5

Pre-release

Post-release

Contractual pre-sales cover portion of the film cost

Additional cash flow in years 6-10 from digital & TV sales

Note: Major (high budget) films refer to films with direct production costs in excess of $8.5 million.

IntegratedMarketing/Distribu utionApproach:Ra.One
Th heatrical
$38.1 million n in worldwide

collections(1)
Largest Indian theatrical release

ever globally y

Ancillary
Merchandising/ Product

TVSyndication
Exclusive rights sold to Star

Placement

India for $5M $


Pre-sold 1 year in advance of

release

Music/Publishing Digital
Exclusive Rights sold to T 15M+ hits on YouTube(2) Featured on...

SV VOD/VOD
Featured o on..

Series for $3M


Pre-sold 5 months prior to

release

(1) As of February 3, 2012 (2) As of March 2012 Source: Company filings, http://www.boxofficeindia.com

SectionIV: GrowthDrivers

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India:HighGrowthwithAttractive eFundamentals
OneoftheFastestGrowing G Economies
2011 2015 Projecte ed Real GDP Growth

8.2%

8.2%

1.2 billion Indian population


3.9 9% 2.3% % 1.7%

China

India

Bra azil

US

UK

AYoungNation
Median Age g (y (years) )

...withaGrowin ngMiddleClass
Number of Middle Class Households(1)
148

...and Increasing Disposable Income(2)


($ in billions)

$1,688

40

37

35 29 26

85

$824 $ $443

31 10 United Kingdom USA China Brazil India 2000 000 2008 008 2020 0 0 2030 030

2005

2015

2025

% of Total Households

5%

14%

31%

46%

(1) Indian middle class defined as households earning between approximately $3,800 and $18,900 per year (2) Rupees converted to USD at 53.01 Source: Euromonitor International, McKinsey Global Institute

Media&EntertainmentMarketPr rojectedtoGrowat15%
($ in billions)

$27 $5

CAGRs: Other: 20.5%

$24 $20 $18 $16 $14 $2 $2 $4 $4 $2 $2 $5 $3 $2 $5 $3 $2 $6 $4 $3

$3

Film: 10.1%

$6

Print: 9.1%

$14 $12 $6 $7 $8 $10

TV: 17.4%

2011

2012

2013

2014

2015

2016

Note: Rupees converted to USD at 53.01. Other includes radio, music, out of home, animation & VFX, gam ming and digital advertising segments Source: FICCI KPMG 2012

ExpandingTheatricalMarketSho ouldBenefitEros
India is a Highly Underpenetrated Market
Screens per Million Population

Fueling Growth in the Indian Film Industry


($ in billions)

Indian Film Industry Revenue Outlook

117

$2.8
77

$2.5
45 30 12 US France Germany UK India

$2.3 $2.1 $1.9 $1.8

with Increasing Multiplexes & Ticket Prices


Number of Multiplex Screens Outlook Ticket Price Growth Outlook

1,824 $0.81 1 331 1,331 $0.58

2011

2015

2011

2015

2011

2012

2013

2014

2015

2016

Note: Rupees converted to USD at 53.01 Source: India Entertainment and Media Outlook 2011 PWC, FICCI KPMG 2012, ScreenDigest

IndianTVMarketIsUnderpenetra atedwithStrongPotential
Current Low Television Household Penetration
As of 2011
98% 90%

is Expected to Fuel Growth in the Indian TV Industry


($ in billions)

Television Industry Revenue


$13.9 $11.7

61%

$9.7 $6.2 $4.0 $2.2 $7.2 $4.7 $2.5 $8.2 $7.9 $5.4 $6 5 $6.5 $9.5

$2.8

$3.2

$3.7

$4.3 2016

China

Brazil

India

2011

2012 2013 Advertising revenues

2014 2015 Subscription revenues

Willingness to Pay for Content...


(in millions)

is Supported by Favorable Viewing Preferences


Percentage of viewing time spent

India Pay-TV Subscriber Base

165

39.3% 33.4%

80+%

111

9.5% 4.7%

2011
Source: FICCI KPMG 2012

2016

Hindi GEC + Movies

Regional channels

Kids + Music

Sports + International

ErosInternationalMarketOppor rtunity
Attractive &SizableInternation alMarketAcross50+Countries ErosInternational Market Opp portunity

170M
Pakistans population
Select target growth markets
Pakistan Russia

1.2B
Established distribution markets Developing + recently opened d markets k t Future expansion opportunity Indias population

China Japan Korea Taiwan Brazil

Key y Drivers:
Global demand for Bollywood content Large South Asian Diaspora seeking Bollywood content Significant dubbed opportunity

Source: The Migration and Remittances Factbook 2011, Company filings

ErosNow:EnhancingReachThrou ughDigitalPlatforms

On-demand entertainment platform for internet connected devices Ad supported & subscription based streaming Leverages Eros film & music content Exploits demand for digital Indian content in India & abroad

Multiple Channels

Multiple Internet-Connected Devices

Source: Company filings

SupportedbytheHighGrowthIndianInternetMarket
Current Low Internet Penetration in India
Internet Penetration 2011(1)

Is Expected to Fuel Increased Internet Connections


(Subscribers in millions)

80.1%

86.8%
443 51 325

39 2% 39.2%

43.4%
127 26 101 2012 180 31 150 2013 Wireless

245 36 208

43 392 282

10.9%

88 22 65

India

China

Brazil

US

United Kingdom

2011

2014 Wireline

2015

2016

Supported by Increasing Mobile Subscribers


(i millions) (in illi ) (in millions) (in billions)

Driving Higher Internet Spending


Indian E-commerce Market

Mobile Subscribers

Active Internet Enabled Smartphones

$11.8

264
1,288
$6 7 $6.7

907
$4.3 $2.5

10 2011 2016 2011 2016

$0 6 $0.6 2011

$1.3

2012

2013

2014

2015

2016

(1) Percent of total households with Internet access Source: Euromonitor, Edelweiss research, FICCI 20

SectionV:BusinessOverview

27

PerformanceatIn ndianBoxOffice

Out of the top 10 grossing films in CY2009

Out of the top 10 grossing films in CY2010

Out of the top 10 grossing films in CY2011

Out of the top 10 grossing films in CY2012

LOVEAAJKAL

GOLMAAL3

R ONE RA RA.ONE R READY

HOUSEFULL2 SONOFSARDAR

DEDANADAN

HOUSEFULL

R ROCKSTAR
KAMBAKKHTISHQ ANJAANA ANJAANI

ZINDAGINA Z M MILEGI DOBARA

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& the winning strea ak Continues

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SlatevisibilityFY2014andbey yond
FilmName Attacksof26/11 3G G Goa Go G G Gone Warning(3D) DekhTamashaDekh StarCast/(Director) (RamGopal Varma) NeilNitin Mukesh,Sonal Chauhan (S Shantanu Ray,Sheershak Anand) Saif S ifAli liKhan, h Kunal lKhemu, h Vir i Das, ,Puja j Gupta G ( (Krishna i h DK,Raj j Nidimoru) M Phadnis(AnubhavSinha) SantoshBarmola,MadhurimaTuliManjari SatishKaushik&others (FerozKhan) Jimmi Shergill andothers(Nananiat t Singh) ScheduledRelease (FiscalYear) FY13 FY13 FY13 3 FY13 FY13

Rangeeley(Punjabi)

FY14

Kochadaiyaan Kochadai aan (Tamil,Hindi,Telugu)

Rajinikanth,Deepika Padukone Rajinikanth Pad kone Mus M sic s A.R. A R Rehman (Soundarya (So ndar a Rajinikanth)

FY14

p ,Deepika p Padukone ( (Ayan y Mukerjee) j ) YeJawani Hai Deewani Ranbir Kapoor,

FY14
30

Continued
StarCast/Director SanjayDutt,HarmanBawej ja,(Sanamjit SinghTalwar) Dhanush, ,Sonam Kapoor p (AnandRai) ( ) Tushar Kapoor,Vir Das, h) Vinay Patak (Shashant Shah Ranvir Singh,Deepika Paduk kone (SanjayLeela Bhansali) R Madhavan, R. Madhavan Kangana Ran naut (AnandRai) Shahid Kapoor,Sonakshi Sin nha(PrabhuDeva) SunnyDeol(AnilSharma) HritihkRoshan(RakeshRosh han) SaifAliKhan ScheduledRelease (FiscalYear) FY14 FY14 FY14

FilmName

Dishkiyaaoon

Ranjhana j

Bajate Raho

RamLeela

FY14 FY14 FY14 FY14 FY14 FY14

TanuWedsManuSeason2

RamboRajkumar

SinghSaabTheGreat

Krrish 3

IlluminatiFilmsUntitled

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Continued
FilmName Purani Jeans Sarkar3 StarCast/Director AdityaSeal(Tanushree Basu u) AmitabhBachchan,Abhishe ekBachchan ( (RamGopal p Varma) ) ScheduledRelease (FiscalYear) ( ) FY14 FY14

Rana (Tamil,Hindi,Telugu) RohitDhawan Untitled Chalo China BoneyKapoor Untitled Bajirao Mastani TamilUntitled R.Balki Untitled Aankhen 2

Rajnikant andDeepika Padu ukone(K.S.Ravikumar) (Rohit Dhawan) LaraDutta,Vinay Patak Arjun Kapoor(Okkadu rema ake) (SanjayLeela Bhansali) Rajnikanth (K K.V. V Anand) (R.Balki) Amitabh Bachchan,Abhishe ekBachchan (Apoorva Lakhia)

FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15

32

Continued

FilmName

StarCast/Director EndemolMotionPictures

ScheduledRelease (FiscalYear) FY15

3Flims Untitled

33

SectionVI:FinancialOverview w

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EROSCONSOLIDATED:Revenue&EBITGrowth
SalesRs.Millions
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12 2179.42 500 221 4,747 1,000 688 6,265 6,409 1,500 1,213 1,100 70,697 , 2,000 1,613 94,388 2,500 2,257

EBIT(Rs.Million)

Net Sales has grown by 35% in FY12

40% EBIT growth over previous year

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EROSCONSOLIDATED:PAT&EPSGrowth
PAT(Rs.Millions)
1600 1400 1200 1000 833 800 600 427 400 200 0 FY07 FY08 FY09 FY10 FY11 FY12 135.3 747 1172.3 1478.4

EPS
18 16 14 12 10 8 6 4 2 0 FY07 FY08 FY09 FY10 FY11 FY12 1.86 5.76 11.27 10.27 14.35 16.5

PAT growth over previous year at 26%

EPS increased by 12.6% in FY12

36

RobustBalanceSheet
(Rs in million) (Rs.

FY12 Net Cash from Operations <1> Capex (India rights) 5708 4908

FY11 4112 3059

Cash Gross Debt Net Debt Net Debt / Underlying EBITDA(2)

3454 3700 246 0.04 X

2983 1982 (1001) Surplus (0.24) x Surplus

Strong li iquidity

1. Net cash from operations is before working capital changes 2 Underlying EBITDA is profit before depreciation of tangible assets, amortisation a of intangible assets, finance costs, other gains and losses and income tax and share based payme Source: Company filings

SectionVII:StrategicCollabora ation HBO&Eros ation

38

IndianTVMarket Digitizationdr rive


Current Low Television Household Penetration
As of 2011
98% 90% $11.7 61% $6.2 $7.2 $8.2 $9.7

is Expected to Fuel Growth in the Indian TV Industry


($ in billions)

Television Industry Revenue


$13.9

$9.5 $7.9 $6 5 $6.5

$4.0 $2.2
China Brazil India

$4.7 $2.5

$5.4

$2.8

$3.2

$3.7

$4.3 2016

2011

2012 2013 Advertising revenues

2014 2015 Subscription revenues

Willingness to Pay for Content...


(in millions)

is Supported by Favorable Viewing Preferences


Percentage of viewing time spent

India Pay-TV Subscriber Base

165

39.3% 33.4%

80+%

111

9.5% 4.7%

2011
Source: FICCI KPMG 2012

2016

Hindi GEC + Movies

Regional channels

Kids + Music

Sports + International

Gamechangingcollaboration

INTERNATIONAL WINDO OWING


Theatrical DVD/Pay PerView Premium Television Free Television

INDIA WINDOWING
Theatrical DVD Free Television

Sum of the parts will be e greater than the whole


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HBO InternationalMarketLeade ersinPremiumTelevision


HBO(HomeBoxOffice)isanAmericanpremiumcabletelevision network,ownedbyTimeWarner,undertheoperatingsubsidiaryHomeBox OfficeInc. As A of f J January2012 2012,HBO' HBO'sprogramming i reaches r h 29million illi subscribers b ib in i the h UnitedStates,makingitthesecondlarges stpremiumnetworkintheUnited States. InadditiontoitsU.S.subscriberbase,HBO Oalsobroadcastsinatleast151 countriesworldwide. HBO HBO's sprogrammingconsistsprimarilyoftheatrically t releasedmotionpictures andoriginalseries,alongwithmadeforcable c moviesand documentaries,boxingmatches,andocca asionalstandupcomedyand concert tspecials. i l emarketsthatitoperateworldwide HBOhasa25%averagepenetrationinthe

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HBOEROSTelevisionCollaboration HollywoodmeetsBollywood
Launchof2PremiumTelevisionChannelsinIndiaonDigital g p platforms Hollywoodcontentprovidedmainlyby yParamount,WarnerBrothersand otherindependentstudios Bollywood y contentprovided p by yEros HBODEFINEDandHBOHITS USPandCompetitiveAdvantage AdvertisingFree Firsttelevisionwindowaftertheatrical/DVD AudiosynchsofEnglishmoviesinvario ousIndianlanguages OriginalHBOprogrammingincludingtop t ratedTVseries UniqueofferingcomingHollywoodandBollywoodprogrammingforone competitivepricing HighDefinitionaswellasStandardDe efinitionoffering

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ParametersoftheHBOErosCollaboration
Contentwillbeprovidedby3studios Er ros ParamountandWarnerBrothers ros, Thechannelswillroughlyhave30%HindiandotherIndianlanguagecontent andthebalance70%willbeEnglishmovie es Allthreestudioswillhaveanequalshareoftheagreeddistributablerevenues offthetopi.e.beforecosts. Alloperationalcostsincludingtechnicalan ndmarketingwillbebornebyHBO ErosandHBOwillhaveajointsteeringbo oardtodevisestrategiesand marketingplansandprogramminginitiativesaswellasnegotiatecarriage d l jointly deals j i tl

43

Eroscontentobligation
Eroshasanobligationtoprovide1012pr remiersayear(firstwindowfrom theatrical)andabouta100librarytitleseveryyear l films ThiscanincludeHindiaswellasregionallanguage (Erosdoesabout70+filmsayearincludin ngHindiTamilPunjabiandother languages) Erosisfreetolicensethosefilmstosatellitetelevisionchannelsafteraone monthexclusivewindowonthepremiumchannels

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HBOCollaboration Opportunityversus v Challenges

Opportunities ii Leveragemarketleadershipasafilm yintotelevision studiotoforay broadcasting Noinvestmentinopex andno investmentinpipes Contentasthecurrency Jumpstartoriginalprogramming production Strategic St t i Synergies S i with ithTime Ti Warner W group Unlocklibraryvalueandstrengthencore competency SteadyroadtobecomingIndiastrue mediaconglomerate

Challenges h ll Shortrunnegotiationchallengeswith p thenew televisionnetworkstoaccept windowandmaintainpremiumpricing forfilmlicensing Onasmallbaseitisunlikelytoaffect existing i i arrangements Onalargerbasethenumbersjustifythe challenge ExistingTVnetworkswillthemselves forayintopremiumTVbouquetswhich willhelpgrowthespaceandestablish thewindow

45

Thank kYou
F morei For information f ti onthe th C Company,please l visit: i it www.erosintl.com i tl orcontact t t KamalJain/UttaraRamakrishna Group pChiefFinancialOfficer India ErosInternationalMediaLtd Tel:+912240538500 Fax:+912240538540 Email:kamal.jain@erosintl.com uttara.ramakrishna@erosintl.com AnoopPoojari/AnkitHirawat Citigate Dewe Rogerson Tel:+912266451211/1244 Fax:+912266451213 Email:anoop@cdrindia.com ankith@cdrindia.com india com
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