Entertainment Network (India) Limited · NSE:ENIL
Entertainment Network (India) — Media Conference 17 May 2006
44 slides from Entertainment Network (India)'s conference presentation, May 17, 2006
Slide 1: Entertainment Network (India) Ltd. - A Times Group Company
ENTERTAINMENT NETWORK (INDIA) LTD. A TIMES GROUP COMPANY Semone: G65) SE
Slide 2: Disclaimer
Disclaimer Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties rela
Slide 3: Agenda
1. Company Snapshot 2. Business Overview 3. Directors & Management Agenda 4. Key Financials FY 2006 5. Ownership Structure & Share Price Performance 6. Future Business Outlook 3
Slide 4: Company Snapshot
Company Snapshot 4
Slide 5: Company Snapshot
Company Snapshot Headquarters: Mumbai, India Incorporated: 2001 Listed: February 15, 2006 Subsidiary: Times Innovative Media Private Limited (TIMPL), incorporated on October 26, 2005 Business: – ENIL Radio Broadcasting brand Radio Mirchi – TIMPL Out-of-home Media brand Times OOH; and Experiential Ma
Slide 6: ENIL: Unique Ability to Offer Integrated Media Solutions
ENIL: Unique Ability to Offer Integrated Media Solutions Our Vision is to be “A Leading City-centric Media Company By Delivering Unique Audiences Through Media Vehicles Like FM Radio, Experiential Marketing And Out-of-home Media” 6
Slide 7: Business Division Snapshot
Business Division Snapshot Radio Mirchi: – Till FY 2006 7 Stations (Delhi, Mumbai, Kolkata, Chennai, Pune, Ahmedabad and Indore) – Launched in April 2006 3 Stations (Bangalore, Hyderabad and Jaipur) – Planned 22 additional Stations in next 12-18 months Key Customers: Hutch, HLL, Sahara, BCCL, Bharti
Slide 8: Business Overview
Business Overview 8
Slide 9: ENIL Key Highlights
ENIL Key Highlights • We are operating in high growth industry • We are well prepared and well positioned for the increasing competition • We exceeded our set financial goals for FY06 • We have managed to increase our market share in radio to over 50% • We have maintained our number 1 status in list
Slide 10: High Growth Projected for Radio Industry
High Growth Projected for Radio Industry Ad Spent as a % of GDP Radio Industry Share in Ad Spend 2.0 16.0 15.3 1.6 12.5 13.0 1.5 1.4 10.0 9.4 1.1 8.7 1.0 1.0 7.0 6.5 0.7 0.6 4.4 0.5 0.3 4.0 2.9 1.0 0.0 Thailand New Singapore World Philipines China India Philipines New Singapore World Thailand China
Slide 11: Radio Industry: Positive Regulatory Reforms
Radio Industry: Positive Regulatory Reforms • Roll-out of Phase II of • From existing 12 cities to privatization 91 cities • Fixed License Fee regime changed to OTEF + Revenue • From existing 21 stations share to approximately 300 stations • Annual license fee 4% of gross revenues • From existing 7
Slide 12: We are now present in all the top 13 towns
We are now present in all the top 13 towns (pop 2 mn +) Delhi • ENIL won 25 licenses in Jaipur Lucknow the Phase II bidding Kanpur Ahmedabad • Only company to have Kolkata presence in top 13 towns Surat Nagpur with population of 2 mn+ Mumbai Pune Hyderabad • Only incumbent in all the four metros Ban
Slide 13: FM Radio – Competitive landscape
FM Radio – Competitive landscape Player Total stations Of top 13 towns • Adlabs 44 7 • South Asia/Kaal Radio 40 10 • ENIL 32 13 • Radio City 20 11 • Dainik Bhaskar 17 4 • Bag Films 10 0 • Zee/Century 8 0 • Thanthi/Today/Midday 7 1/3/7 • HT/Positive/Raj Pat 4 4/0/1 • Red FM 3 3 13
Slide 14: #1 Listenership Share
#1 Listenership Share Listnership in Mumbai Listnership in Delhi Lakhs Lakhs 30.0 40.0 36.8 20.5 30.0 20.0 19.0 20.0 17.3 12.0 13.5 10.0 10.0 2.5 0.0 0.0 Radio Mirchi Radio City Red FM Go Radio Mirchi Radio City Red FM Source: MRUC Survey, AC Neilson (ORG-Marg-Wave 8, fieldwork Jan 06 to Source: MRU
Slide 15: Mirchi a Must-Have Media Vehicle
Mirchi a “Must-Have” Media Vehicle Radio Mirchi Today Reaches More People Than The #1 TV/Print Media Brands 15
Slide 16: Track Record of Developing Innovative Content & Operating in Diverse Markets
Track Record of Developing Innovative Content & Operating in Diverse Markets • Innovative Content: – Strong relationships with Hindi, Bengali and Tamil film fraternity – Exclusive music breaks – Mature research culture – music/listenership • Success in Diverse Markets – Experience in establishing su
Slide 17: Superior Sales Capabilities
Superior Sales Capabilities • Dedicated 180 member sales team across 10 centers • Offering unique and innovative solutions to clients – Hutch ‘Pink Campaign’ • Strong emphasis on training • Mirchi Activation: Pioneers in the radio space 17
Slide 18: Indian Out of Home Industry and Growth Drivers
Indian Out of Home Industry and Growth Drivers • Tendered Properties Indian OOH Industry Growth Increasing tender of properties to Rs. In mn organized players 20000 17,500 15,500 16000 12,000 13,500 • Long term Contracts 12000 9,000 10,500 Opportunities for acquiring or taking 8,500 8000 long term r
Slide 19: Times OOH Media: Ability to Offer Integrated Marketing Solutions
Times OOH Media : Ability to Offer Integrated Marketing Solutions Multi City-Multi Mix Mumbai Must-Win Market Bus Shelters Till Dec 2008 South Mumbai & West Mumbai (except Central) : Target Quality: Affluent Population Mass 1400+Sites : Choice & Coverage Delhi Must-Win Market Metro Stations Metro CP
Slide 20: Focus on new technology – LED Video Walls
Focus on new technology – LED Video Walls • Imported 4 LED screens – Put up 1 LED screen at Sahara Mall – Gurgaon • Planned Rs. 350.0 mn (US$ 7.8 mn) over the time • Positives of LED – Dynamic - Television Outdoors, Motion and sound – Aesthetic - Superior quality of color, Weather Proof – Flexible -
Slide 21: 360° Experience: Move towards Large Ticket Business
360° Experience: Move towards Large Ticket Business • Focus on big ticket events: Conceptualizing, marketing and execution 360o – Filmfare Awards, International Film Festival of India, 2004, Femina Miss India Fashion & Lifestyle Third Party – Ability to raise sponsorships • Produce and manage • Cond
Slide 22: Key Challenges facing ENIL
Key Challenges facing ENIL • Rapid roll-out of stations • Talent identification, training and retention • Retaining and growing absolute listenership numbers • Cost management – especially w.r.t marketing and payroll • Music royalty regime – rationalization • Development of listenership research sta
Slide 23: Board of Directors And Management
Board of Directors And Management 23
Slide 24: Board of Directors
Board of Directors • Mr. Deepak M Satwalekar – Non-Executive and Independent Director – MD and CEO , HDFC Standard Life – Director on the board of Infosys, Asian paints, Nicholas Piramal & others • Mr. N Kumar – Non-Executive and Independent Director – Vice Chairman, Sanmar Group – Director on the b
Slide 25: Strong & Experienced Management Team
Strong & Experienced Management Team CEO AP Parigi Experience 34 years overall 51/2 years at ENIL Deputy CEO CFO Business Head SVP Legal & CS EVP, SVP, People Times OOH Regulatory Affairs Innovation Prashant Harvinderjit Anil Farid Prasad Panday Singh Bhatia Kureshi Fernandes Ravi Narula Swaminathan
Slide 26: Key Financials FY 2006
Key Financials FY 2006 26
Slide 27: ENIL Financials - Key Highlights
ENIL Financials - Key Highlights • Initial Public Offer of 13.2 mn shares of Rs.10/- each at a premium of Rs. 152/- aggregating issue proceeds of Rs. 2,138.4 mn • Investment of Rs. 40.0 mn in 100% subsidiary Times Innovative Media Pvt. Limited (TIMPL) • One Time Entry Fee of Rs.1,301.0 mn for 25 new
Slide 28: Consolidated Results in line with Analyst Expectations
Consolidated Results in line with Analyst Expectations… • TIMPL Actual results JMMS ENAM Actual In Rs. mn are for 5 months Total Income 1,555.0 1,667.0 1,406.7 period from October 26, 2005 to March 31, Operating Expenses 1,140.0 1,255.0 998.4 2006, as compared to annualised numbers EBITDA 415.0 412.
Slide 29: ENIL Standalone: Key Financials FY 2006
ENIL Standalone: Key Financials FY 2006 FYE 2005 FYE 2006 • Increase in airtime sales In Rs. mn (Audited) (Audited) of 57% in FY06 over FY05 Total Income 762.3 1,201.9 • EBITDA Margins of 32% Operating Expenses 884.8 820.5 in FY06 EBITDA (122.6) 381.4 • Exceptional item of Rs. Margin (%) (16.1%) 31.
Slide 30: ENIL Standalone - Strong Financial Performance
ENIL Standalone - Strong Financial Performance Revenue in Rs. Million EBITDA in Rs. Million 1400 400 381 1200 300 1202 1000 200 800 100 762 600 0 550 400 -100 -122 200 -200 -245 0 -300 FY04 FY05 FY06 FY04 FY05 FY06 30
Slide 31: Ownership Structure and Share Price Performance
Ownership Structure and Share Price Performance 31
Slide 32: Ownership Structure
Ownership Structure By Category Top Shareholders 2% 1%1% Shares % Holding 6% (mn) 18% TIML 30.52 64.18% Fidelity 4.51 9.48% BCCL 3.39 7.13% 72% HSBC (ME) 1.26 2.64% Promoters FIIs Macquarie 0.80 1.68% Individuals Corporates Morgan Stanley 0.77 1.62% Directors & Employees Others Citigroup 0.63 1.32%
Slide 33: Share Price Performance
Share Price Performance (1) 280 8.0 • 48.6% gain against 19-Apr-06 Fourth quarter and Allotment price of annual results above 6.4 Rs.162 per share 260 S h a re s ( M illio n ) expectations P ric e ( R s .) 4.8 240 • Market Cap. : 3.2 Rs. 11,446.2 mn 220 1.6 • Promoters holding : 200 - Rs. 8,162.3 mn
Slide 34: Media Companies on Inflexion point
Media Companies on Inflexion point... Allotment Price Market Capital P / E(1) Listed On Price 15/05/06 (x) (Rs.) (Rs.) (Rs. mn) Jagran Prakashan 22-Feb-06 320.0 295.2 14,820 46.3x ENIL 15-Feb-06 162.0 240.7 11,446 38.8x HT Media 01-Sep-05 530.0 527.7 24,720 66.3x NDTV 19-May-04 70.0 257.2 15,640 NM
Slide 35: Future Business Outlook
Future Business Outlook 35
Slide 36: Bright Future Outlook - ENIL
Bright Future Outlook - ENIL • Expand our footprint in radio broadcasting – Rapid roll-out of 22 new stations – Explore opportunities to become FM radio broadcasters in international markets • Maintain market leadership in fast growing radio industry – Continuously invest in brand building and progr
Slide 37: Bright Future Outlook - TIMPL
Bright Future Outlook - TIMPL • Focus on Out-of-Home media growth – Expansion of the network of out-of-home media sites managed by us – Explore opportunities to lease sites on a long-term basis – Introduce innovative technology and processes • Establish long-term client relationships for Experientia
Slide 38: Radio Industry: Pending agenda
Radio Industry: Pending agenda • News & Current Affairs • FDI/FII cap • Multiple frequencies • Tradability • Limitation on share transfer of main promoter for 5 years 38
Slide 39: Thank You
Thank You
Slide 40: Back-ups
Back-ups 40
Slide 41: ENIL Consolidated: Key Financials FY 2006 (Above the Line Items)
ENIL Consolidated: Key Financials FY 2006 (Above the Line Items) FYE 2006 % of In Rs. mn (Unaudited) Revenue Airtime Sales 1,174.1 83.5% Event Income 183.6 13.0% Out of Home Media 17.0 1.2% Other Income 32.0 2.3% Total Income 1,406.7 100.0% Production Expenses: License Fee 64.3 4.6% Other Production
Slide 42: ENIL Consolidated: Key Financials FY 2006 (Below the Line Expenses)
ENIL Consolidated: Key Financials FY 2006 (Below the Line Expenses) FYE 2006 % of In Rs. mn (Unaudited) Revenue EBITDA 408.3 29.0% Less: Depreciation 42.7 3.0% Amortisation of Migration Fee 81.5 5.8% Interest 26.1 1.9% PBT 258.0 18.3% Taxation(1) 45.6 3.2% Effective Tax rate (%) 17.7% PAT 212.4 15.1
Slide 43: ENIL: Key Financials FY 2006 (Above the Line Items)
ENIL: Key Financials FY 2006 (Above the Line Items) FYE 2006 % of FYE 2005 % of Growth In Rs. mn (Audited) Revenue (Audited) Revenue (%) Revenues 1,174.1 97.7% 749.4 98.3% 56.7% Other Income 27.8 2.3% 12.8 1.7% 117.2% Total Income 1,201.9 100.0% 762.3 100.0% 57.7% Production Expenses: License Fee 64
Slide 44: ENIL: Key Financials FY 2006 (Below the Line Expenses)
ENIL: Key Financials FY 2006 (Below the Line Expenses) FYE 2006 FYE 2005 Growth In Rs. mn (Audited) (Audited) (%) EBITDA 381.4 (122.6) NM Less: Depreciation 41.8 53.4 21.7% Amortisation of Migration Fee 81.5 NA (100%) Interest 25.9 2.9 793.1% Preliminary Expenses w/off 0.3 (100%) PBT 232.1 (179.2) N
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