Balaji Telefilms Limited · NSE:BALAJITELE
Balaji Telefilms — Investor Presentation (September 2015)
54 slides from Balaji Telefilms's investor presentation, September 2015
Slide 1: Corporate Presentation
SEPTEMBER 2015 Corporate Presentation Unique, Distinctive, Disruptive Private and Confidential Unique, Distinctive, Disruptive
Slide 2: Contents
Contents 1 About Balaji Telefilms 2 Growth: Three-pronged Strategy 3 Television Production 4 Movies 5 ALT Digital - Digital B2C 6 Group Financials 2 Unique, Distinctive, Disruptive Private and Confidential
Slide 3: About Balaji Telefilms
Unique, Distinctive, Disruptive About Balaji Telefilms
Slide 4: Board of Directors
Board of Directors Jeetendra Kapoor - Chairman Shobha Kapoor - Managing Director • Jeetendra Kapoor is a popular movie star throughout the • Shobha Kapoor has been instrumental in transforming 1970s and 1980s and has starred in more than 200 the Company from its small beginnings in 1994 to India’s M
Slide 5: Board of Directors (cont’d)
Board of Directors (cont’d) Sameer Nair - Group CEO Pradeep Sarda - Independent Director • Former Programming Head, COO, CEO of Star India, and • The Chairman of the Sarda Group of Companies and the Founder/CEO of NDTV Imagine, later christened Turner Chairman of the Governing Board of the Ecole Mon
Slide 6: Board of Directors (cont’d)
Board of Directors (cont’d) Mr. D. K. Vasal - Independent Director Mr. V. B. Dalal - Independent Director • Over 30 years of experience in the service and • Over 40 years of experience in Audit and Direct Taxation manufacturing industry and also handled international assignments in internal and oper
Slide 7: About Balaji Telefilms Limited
About Balaji Telefilms Limited • A leading entertainment house in India since 1994 • Demonstrated ability to create high quality content • Executed over 16,000 hours of television content in Hindi, Tamil, Telugu, Kannada, Malayalam and Bengali entertainment across genres • Owning 19 modern studios a
Slide 8: About Balaji Telefilms Ltd. (cont’d)
About Balaji Telefilms Ltd. (cont’d) • Television and Film has been the foundation stone of Balaji Telefilms Limited (BTL) • Rich experience in entertainment and a proven ability in gauging the pulse of masses • Past track record has been exemplary with a string of hit shows in Hindi and Regional te
Slide 9: Growth: Three-pronged Strategy
Unique, Distinctive, Disruptive Growth: Three-pronged Strategy
Slide 10: A Three-pronged Strategy to Become a Diversified Media Major in India
A Three-pronged Strategy to Become a Diversified Media Major in India Digital B2C OWN Platform SVOD + AVOD Original & Curated Content Movies Young, edgy, disruptive, premium Pipeline & Slate Multiple Genres & languages Risk Averse Share of Mobile & Online Video Co-prods Market TV P
Slide 11: Television Production
Unique, Distinctive, Disruptive Television Production
Slide 12: Key Business Drivers - Television
Key Business Drivers - Television • Commissioned programming is the key revenue driver for the television division • Improving realisation in Commissioned programming • Television revenues expected to expand owing to demand from satellite channels for our premium television serials • Kum Kum Bhagaya
Slide 13: Television - 4 Out of 6 Daily Soaps are Slot Leaders
Television - 4 Out of 6 Daily Soaps are Slot Leaders Shows Channel Time Schedule Ratings* Pavitra Bandhan Do Dilo Ka DD National 20.30 - 21.00 Monday – Friday 15.58 Kumkum Bhagya Zee 21.00 - 21.30 Monday – Friday 3.95 Ye Hai Mohabbatein Star Plus 19.30 - 20.00 Monday – Saturday 3.43 Meri Aashiqui Tu
Slide 14: BTL's Contribution in the GRP's of Leading GECs
BTL's Contribution in the GRP's of Leading GECs Star Plus Zee TV Colors 19% 15% 25% • A leading contributor to the GRP’s of top GECs Ratings for the TAM week 37 (Sept 6, 2015 – Sept 12, 2015) 14 Unique, Distinctive, Disruptive Private and Confidential
Slide 15: Share of Different Broadcasters – FY15
Share of Different Broadcasters – FY15 Revenue 4% 9% 7% 5% 19% 12% 44% Sony Star Zee Viacom DD Life Ok Sony Pal • Revenue is fairly spread out among major broadcasters with Zee contributing 43% • With the available show pipeline, we foresee more even distribution in the current fiscal 15 Unique, Dis
Slide 16: Key Operating Highlights
Key Operating Highlights Television • Successfully finalised four shows on various GEC’s − Finite series of 130 episodes to be aired from Monday to Friday on Sony - second week of Sept’15 − Daily fiction serial to be aired on Star Plus from Monday to Saturday - second week of Sept’15 − Fiction daily
Slide 17: Other Key Operating Highlights
Other Key Operating Highlights Event Media LLP • Successfully aired ‘Mother’s Day’ a special event on Star Plus • Box Office India Awards to be aired on a leading GEC during the first week of Nov’15 Chayabani Balaji Entertainment Private Limited • Daily original programing to be aired on Colors Beng
Slide 18: BTL Shows – Daily Soaps
BTL Shows – Daily Soaps 8 year run 8 year run completed over completed over 1,600 episodes 1,800 episodes 7 year run completed over 1,700 episodes 3 year run completed over 740 episodes 4 year run completed over 750 episodes 18 Unique, Distinctive, Disruptive Private and Confidential
Slide 19: BTL Shows – Daily Soaps (cont'd)
BTL Shows – Daily Soaps (cont'd) 3 year run completed over 700 episodes 4 year run completed over 1,000 episodes 3 year run completed over 600 episodes 2 year run 2 year run completed over 400 completed over 200 episodes episodes 5 year run completed over 1,400 episodes 19 Unique, Distinctive, Disru
Slide 20: BTL Shows – Other Genres
BTL Shows – Other Genres 5 year run most acclaimed serial 20 Unique, Distinctive, Disruptive Private and Confidential
Slide 21: BTL Shows - Regional
BTL Shows - Regional Regional: Kannada Regional: Tamil Nos of yrs: 12 yrs Nos of yrs: 9 yrs Nos of Shows: 14 Nos of Shows: 7 Nos of Episodes: 5,832 Nos of Episodes: 3,309 Regional: Telugu Regional: Malyalam Nos of yrs: 14 yrs Nos of yrs: 5 yrs Nos of Shows: 17 Nos of Shows: 5 Nos of Episodes: 5,619
Slide 22: Movies
Unique, Distinctive, Disruptive Movies
Slide 23: Key Business Drivers - Movies
Key Business Drivers - Movies • Rapidly expanding number of multiplexes resulting in growth opportunities and better reach • Company’s theatrical performance improved owing to strong content driven by increasing number of multiplex theatres with rising average ticket prices • Audiences acceptance fo
Slide 24: Strategic Partnerships, Distribution and Marketing, Satellite Syndication
Business Essential • Strong • Exploring best • Building a • Theatrical • Co- Robust Movie Slate Distribution and Marketing Strategic Partnerships Satellite Syndication Forward and Backward Integration content possible deals strong movie rights sold production creativity for cable & pipeline closer t
Slide 25: Movies Pipeline
Movies Pipeline ‘Great Grand Masti’ last leg of shooting underway – expected release Q4 FY16 ‘Kya Kool Hai Hum 3’ and ‘XXX’ in post production stage - expected release Q3/Q4 FY16 ‘Udta Punjab’ in post production stage - expected release Q4 FY16 ‘Azhar’ a biopic, shooting in progress – expect
Slide 26: Our IPRs
Our IPRs 26 Unique, Distinctive, Disruptive Private and Confidential
Slide 27: Our IPRs (cont’d)
Our IPRs (cont’d) 27 Unique, Distinctive, Disruptive Private and Confidential
Slide 28: Our IPRs (cont’d)
Our IPRs (cont’d) 28 Unique, Distinctive, Disruptive Private and Confidential
Slide 29: Amortisation Policy on Inventory
Amortisation Policy on Inventory • Items of inventory are carried at lower of cost and net realizable value. Cost is determined on following basis: − Films: Actual Cost − Unamortised cost of films: The cost of films is amortised in the ratio of current revenue to expected total revenue. At the end o
Slide 30: ALT Digital - Digital B2C
Unique, Distinctive, Disruptive ALT Digital - Digital B2C
Slide 31: Key Business Drivers - Digital
Key Business Drivers - Digital • India has a large number of mobile internet consumers who are spending money on the internet • The content consumption is primarily through streaming from apps and social media rather than downloads • Growth in broadband internet to accelerate significantly in the fu
Slide 32: Building a Digital B2C Business Emerged as a Critical Element of the Strategy
Building a Digital B2C Business Emerged as a Critical Element of the Strategy to Achieve the Goal Films Television SCALE moderately and become PROFITABLE Digital KEEP THE LIGHTS ON, foray into REGIONAL and NON-FICTION make selective RISK-REWARD plays GOAL 5 YEARS Build a Digital B2C business through
Slide 33: Business Model
Business Model Private and Confidential Unique, Distinctive, Disruptive
Slide 34: Our Business Model Involves Launching a Digital Brand ‘ALT Digital’
Our Business Model Involves Launching a Digital Brand ‘ALT Digital’ Backed by Original Content D2C Using a Subscription Model Content strategy Edgy, never-seen-before in India, large variety and volume of original content created especially for the OTT platform. It will have curated content as well
Slide 35: The Digital Value Chain Allows Us to Go Direct to Consumer
The Digital Value Chain Allows Us to Go Direct to Consumer Existing TV value chain Distribution Content production Broadcasting (Cable/DTH) • Balaji currently operates in content production with no connect to the end consumer and no IP ownership (which is owned by the broadcaster) Digital value chai
Slide 36: The Content will be Delivered D2C on Smartphones, Tablets and Other Screens
The Content will be Delivered D2C on Smartphones, Tablets and Other Screens 36 Unique, Distinctive, Disruptive Private and Confidential
Slide 37: Opportunity Canvas
Opportunity Canvas Private and Confidential Unique, Distinctive, Disruptive
Slide 38: Online Video Consumption is Growing Rapidly
Online Video Consumption is Growing Rapidly Online video viewership in India on PC, unique users Online video views in India on PC (Monthly Average) (monthly average) # million # billion 70 23% 31% 4.50 59 4.10 60 54 4.00 3.71 50 3.50 3.10 42 3.00 40 32 2.50 30 2.00 1.86 20 1.50 1.00 10 0.50 - - 201
Slide 39: Further Driven by Growth in Broadband Internet, Led by Growing Smartphone Numbers
Further Driven by Growth in Broadband Internet, Led by Growing Smartphone Numbers Broadband connections in India # million 38% 700 600 600 500 434 400 314 300 227 200 164 119 86 100 55 - 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E Source: TRAI, Ericson study 39 Unique, Distinctive, Disruptive Priv
Slide 40: The Internet Audiences Viewing These Videos Have Different Characteristics and Segments
The Internet Audiences Viewing These Videos Have Different Set of Characteristics and Segments….. • 23 - 40 years • 23 - 40 years • 23 - 40 years • 40+ years • Tier I-II cities • Tier I cities • Tier I cities • Tier I-IV cities • Net access via mobile • Net access via mobile • Net access via mobile
Slide 41: ...Who is Already Accessing Various Services on Mobile Internet…
...Who is Already Accessing Various Services on Mobile Internet… Video viewing on PCs has almost doubled in 3 years Online video landscape Unique viewers (mn per month) Video audience (hours/month/viewer) 59 24 59 mn viewers 54 17 15 42 3.7 bn videos 11 7 32 7 hrs of content Mar 2011 Mar 2014 India
Slide 42: ….and Paying for it
….and Paying for it Internet users are becoming increasingly comfortable transacting online Online shoppers (mn) Average annual spending on online Mobile Wallet Potential (mn users) 65 purchases (INR) 100 PayTM went from 0 to 50 million 40 users in 15 months 50 6,000 2x 10,000 0 2014 2015 2014 2015
Slide 43: Our Offerings
Our Offerings Private and Confidential Unique, Distinctive, Disruptive
Slide 44: Our Plans are Built Around the Emerging Changes in the Viewing Habits of Consumers
Our Plans are Built Around the Emerging Changes in the Viewing Habits of Consumers • The audience is moving towards non traditional media like mobile and other connected devices • This audience is willing to consume and pay for online services • However, they are hungry for quality original content
Slide 45: To Ride the Next Level of Growth
To Ride the Next Level of Growth • ALT is being built on a key emerging and rapidly accelerating trend – the young, urban audience is looking for entertainment content outside TV to watch at their convenience • A small and growing segment of this audience is willing to pay for such content • Broadba
Slide 46: Launch plan - On Track to Launch by Q4FY16
Launch plan - On Track to Launch by Q4FY16 Q4 FY16 Launch of ALT APP, Website Q3 FY16 Launch Marketing - Tech Development - Content Production - Promo Launch - Pre-Launch Marketing - Beta Launch Q2 FY16 - Announcement of ALT Digital - Team Set-up - Tech Development - Content pre-production 46 Unique
Slide 47: Group Financials
Unique, Distinctive, Disruptive Group Financials
Slide 48: Standalone Financials | Income statement
Standalone Financials | Income statement INR Mn FY11 FY12 FY13 FY14 FY15 Revenue from operations 1,505 1,181 1,350 1,292 2,058 Other operating revenue - 112 58 23 39 Total Revenue 1,505 1,294 1,409 1,315 2,097 Growth% (14%) 9% (7%) 59% Cost of production of television serials 1,091 866 1,092 1,006 1
Slide 49: Standalone Financials | Balance Sheet
Standalone Financials | Balance Sheet INR Mn FY11 FY12 FY13 FY14 FY15 Equity and liabilities Shareholders' funds 3,969 4,070 4,172 4,242 4,300 Share Capital 130 130 130 130 130 Reserves and surplus 3,838 3,939 4,042 4,112 4,169 Current Liabilities 266 282 261 282 399 Trade payables 175 192 200 214 3
Slide 50: Standalone Financials | Cash Flow
Standalone Financials | Cash Flow INR Mn FY11 FY12 FY13 FY14 FY15 Cash flow from operating activities Profit/ (loss) for the year (44) 107 166 160 151 Adjustments (45) (185) (84) (40) 35 Operating profit/(loss) before working capital changes (89) (78) 82 121 186 Working capital adjustments 65 138 15
Slide 51: Group Financials | Income statement
Group Financials | Income statement INR Mn FY11 FY12 FY13 FY14 FY15 Total Revenue 1,922 1,878 1,860 4,075 3,465 Growth% (2%) (1%) 119% (15%) Cost of production 1,355 1,165 1,302 3,851 2,965 Gross Margin 567 713 558 224 500 Gross Margin% 29% 38% 30% 5% 14% Employee benefits expense 184 200 140 164 15
Slide 52: Group Financials | Balance Sheet
Group Financials | Balance Sheet INR Mn FY11 FY12 FY13 FY14 FY15 Equity and liabilities Shareholders' funds 3,725 3,914 4,029 3,827 3,818 Share Capital 130 130 130 130 130 Reserves and surplus 3,594 3,784 3,899 3,696 3,687 Current Liabilities 280 334 462 520 478 Trade payables 186 215 296 302 372 Ot
Slide 53: Group Financials | Cash Flow
Group Financials | Cash Flow INR Mn FY11 FY12 FY13 FY14 FY15 Cash flow from operating activities Profit/ (loss) for the year (15) 195 183 (112) 85 Adjustments (42) (183) (83) (35) 56 Operating profit/(loss) before working capital changes (57) 12 100 (147) 141 Working capital adjustments 151 (141) (1
Slide 54: Thank You
Unique, Distinctive, Disruptive Thank You
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