Balaji Telefilms Limited · NSE:BALAJITELE
Balaji Telefilms — Investor Presentation (February 2017)
49 slides from Balaji Telefilms's investor presentation, February 2017
Slide 1: Investor Presentation
Investor Presentation Unique, Distinctive, Disruptive Private and Confidential Unique, Distinctive, Disruptive
Slide 2: Contents
Contents 1 About Balaji Telefilms 2 Growth Strategy 3 Television Production 4 ALT Digital 5 Movies Business 6 Financials 2 Unique, Distinctive, Disruptive Private and Confidential
Slide 3: Disclaimer
Disclaimer Certain words and statements in this communication concerning Balaji Telefilms Limited (“the Company”) and its prospects, and other statements relating to the Company‟s expected financial position, business strategy, the future development of the Company‟s operations and the general econo
Slide 4: About Balaji Telefilms
Unique, Distinctive, Disruptive About Balaji Telefilms
Slide 5: Overview of Balaji Telefilms
Overview of Balaji Telefilms A leading Alt Balaji entertainment Owning 19 modern Well positioned to house in India studios and 31 editing leverage SVOD and since 1994 suites - more than any Moved towards OTT Video Indian company in Media HD programming Consumption Entertainment Sector to enhance vie
Slide 6: Successful storytellers across formats and audiences
Successful storytellers across formats and audiences TV Digital Movies Television programming has been the foundation Global Subscription stone based video streaming Combination of modest platform budget, high-concept movies as well as high- Unmatched track record profile big star-cast films with st
Slide 7: Strong Promoter Group
Strong Promoter Group Jeetendra Kapoor - Chairman Shobha Kapoor - Managing Director • Jeetendra Kapoor is a popular movie star • Shobha Kapoor has been instrumental in throughout the 1970s and 1980s and has transforming the Company into India‟s largest starred in more than 200 Movies in his 45- TV c
Slide 8: Strong Promoter and Management credentials
Strong Promoter and Management credentials Ekta Kapoor Sameer Nair Joint Managing Director Group CEO A content maestro- the creative brain behind TV and media veteran with a stellar track Balaji record Leading Indian TV and film producer. Under her Former Programming Head, COO, CEO of Star creat
Slide 9: Effective Governance Structure
Effective Governance Structure D. K. Vasal - Independent Director V. B. Dalal - Independent Director • Over 30 years of experience in the service • Over 40 years of experience in Audit and and manufacturing industry Direct Taxation and also handled international assignments in internal and operation
Slide 10: Supported by a professional management team
Supported by a professional management team Sanjay Dwivedi – Group CFO Nachiket Pantvaidya – CEO Alt Balaji • Over 20 years of experience in the field of • An IIM-Ahmedabad alumnus Finance & Accounts. • Was Business Head of Sony Entertainment • A CA from the ICAI, Sanjay has vast Television and also
Slide 11: Growth Strategy
Unique, Distinctive, Disruptive Growth Strategy
Slide 12: Indian Media and Entertainment industry will offer robust growth
Indian Media and Entertainment industry will offer robust growth Size of the Media and Entertainment industry (Rs Bn) Overall Media and Entertainment industry to be a Rs 2,260Bn industry with TV, Film and Digital accounting 255 for 70% of the industry 2x 227 TV industry expected to double from 2
Slide 13: Media consumption habits are changing
Media consumption habits are changing Proliferation of smartphone and growing supply of digital content is changing media consumption habits Use of smart phones and tablets to drive online content consumption and also serve as a second screen while viewing on the primary screen (TV) On second sc
Slide 14: Our strategy is to be where our audience is…
Our strategy is to be where our audience is… Films Television SELECTIVE PROJECTS and become PROFITABLE Digital KEEP THE LIGHTS ON, selective foray into REGIONAL and NON-FICTION making selective RISK-REWARD plays GOAL for BTL Build a DIGITAL B2C business through OWN and curated content, this will bec
Slide 15: The Balaji Telefilms Advantage
The Balaji Telefilms Advantage Superior content creation ability • Track record for producing good serials with differentiated content • Ability to produce multiple serials at any given point in time Unmatched relationships • Over 20 years in the industry • Strong relationships with talents, vendors
Slide 16: Television Production
Unique, Distinctive, Disruptive Television Production
Slide 17: About our Television business
About our Television business Rich experience in Built on producing entertainment and a proven commissioned programming ability in gauging the pulse of for broadcasters masses Past track record has been Entry of newer exemplary with a string of broadcasters and digital hit shows in Hindi and platfor
Slide 18: Revenue drivers for the television business
Revenue drivers for the television business India is the world‟s third largest television market in terms of number of households Commissioned programming is the key revenue driver for the television division and realisation in Commissioned programming has been improving Increasing demand form
Slide 19: Well diversified customer base – across GECs
Well diversified customer base – across GECs Revenue contribution for FY16 13% 26% 18% 42% Sony Star Viacom Zee Show line up at the end of Q3 Channel Show Name Time slot Days Colors Kasam Tere Pyar Ki 22.00 - 22.30 Mon - Fri Colors Kawach Kaali Shaktiyon Se * 19.00 - 20.00 Sat - Sun Colors Naagin 2
Slide 20: Daily Soaps - a few of our success stories
Daily Soaps - a few of our success stories 8 year run completed over 1,600 episodes 3 year run 8 year run completed over completed over 740 episodes 1,800 episodes 7 year run 4 year run 3 year run completed completed over completed 1,000 episodes over 1,700 over 700 episodes episodes 5 year run 4 ye
Slide 21: Track record of expansion into other genres
Track record of expansion into other genres 21 Unique, Distinctive, Disruptive Private and Confidential
Slide 22: Regional shows to provide additional growth opportunity
Regional shows to provide additional growth opportunity Regional: Tamil Regional: Kannada No. of yrs: 9 yrs No. of yrs: 12 yrs No. of Shows: 7 No. of Shows: 14 No. of Episodes: No. of Episodes: 3,309 5,832 Regional: Telugu Regional: Malyalam No. of yrs: 14 yrs No. of yrs: 5 yrs No. of Shows: 17 No.
Slide 23: Other growth levers within Television business
Other growth levers within Television business Chhayabani Balaji Entertainment Private Limited • A 50:50 partnership with Chhayabani Entertainment to make shows in the Bengla market • Star Jalsa : „Phire Asher Gaan‟ a music realty show of 1 hour on Sunday at 9–10 pm, recently completed • Colors Bang
Slide 24: Alt Digital
Unique, Distinctive, Disruptive Alt Digital
Slide 25: Why Alt : Building a Digital B2C Business
Why Alt : Building a Digital B2C Business 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 chain Content product
Slide 26: The Ecosystem in India is getting ready
The Ecosystem in India is getting ready • 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
Slide 27: Cheaper smart phones and cheaper high speed connections…
Cheaper smart phones and cheaper high speed connections… • Cost of a 4G smart phone now sub Rs 3000 • 4G and 3G prices similar – 4G data not sold and will continue to fall as the technology as a premium offering specifications become more common • Price of 1GB of 4G data now Rs 125 and as • Make In
Slide 28: To spur video consumption
To spur video consumption 1.2 Mobile video is going to drive internet traffic Video will be 72% of India's mobile data traffic by 2020, compared to 40% at the end of 2015 Mobile traffic per user will reach 1,704 megabytes per month by 2020, up from 185 megabytes per month in 20x 2015, a CAGR of
Slide 29: The Internet Audiences Viewing These Videos Have Different Characteristics
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 30: ALT positioned as leading GEC in the digital space
ALT positioned as leading GEC in the digital space GEC Youth English VOD & User Generated Content Sports Movies Live & Catch- up TV Premium, Original, Exclusive content Content for the whole ecosystem with a focus on urban masses 30 Unique, Distinctive, Disruptive Private and Confidential
Slide 31: The ALT business model
The ALT business model Content strategy Edgy, large variety and volume of original content created especially for the OTT platform Content strategy based on multiple parameters Primarily related to Age, Gender and spending habits Target group Smartphone internet user with broadband connectivity Urba
Slide 32: Our USP for the ALT Balaji
Our USP for the ALT Balaji Content • Offer diverse and original quality content – not rehashed film and TV material • Customers have prior experience (in TV ) with Balaji content and willing to pay for new content • Ability to leverage the Balaji content creation capabiltiies Product and Technology
Slide 33: Movies
Unique, Distinctive, Disruptive Movies
Slide 34: Revenue drivers for the movies business
Revenue drivers for the movies business Rapidly expanding number of multiplexes results in need for more quality content Audiences acceptance for newer genre movies and their ability to spend for a better cinematic experience Costs for productions reducing as many countries offer rebates for f
Slide 35: Our IPRs for future monetisation…
Our IPRs for future monetisation… 35 Unique, Distinctive, Disruptive Private and Confidential
Slide 36: Our IPRs for future monetisation (continued)
Our IPRs for future monetisation (continued) 36 Unique, Distinctive, Disruptive Private and Confidential
Slide 37: Our competitive advantage and way forward
Our competitive advantage and way forward Forward and Backward Integration • Strong content creativity leading to better scripts • Long standing relationships within the film fraternity Distribution and marketing • Theatrical rights sold closer to the date of release to achieve optimal value • Prese
Slide 38: Our current pipeline
Our current pipeline Film Name Language Cast and Director and Producer Expected Release Arjun Kapoor & Shraddha Kapoor Half Girlfriend Hindi May 2017 (Directed by Mohit Suri) Super Singh Punjabi Diljit Dosanjh - Co-production with Brat Films June 2017 Selectively commission new movies that only have
Slide 39: Group Financials
Unique, Distinctive, Disruptive Group Financials
Slide 40: Recent equity raise to fund Alt Balaji
Recent equity raise to fund Alt Balaji Preferential Issue of Equity Shares completed on March 10, 2016 Issue Size 1500.8 million 140 per Equity Share Pricing (26% premium to average of weekly high and low VWAP of preceding 26 weeks and 18% premium to SEBI floor price) Capital dilution 14.1% (10.7 mi
Slide 41: Standalone Financials | Income statement
Standalone Financials | Income statement Particulars (INR Mn ) FY12 FY13 FY14 FY15 FY16 9M FY17* Revenue from operations 1,181 1,350 1,292 2,058 2,473 1,971 Other operating revenue 112 58 23 39 95 20 Total Revenue 1,294 1,409 1,315 2,097 2,568 1,991 Growth% -14% 9% -7% 59% 22% Cost of production of
Slide 42: Standalone Financials | Balance sheet
Standalone Financials | Balance sheet Particulars (INR Mn ) FY12 FY13 FY14 FY15 FY16 9M FY17* Equity and liabilities Shareholders' funds 4,070 4,172 4,242 4,300 6,128 6426 Share Capital 130 130 130 130 152 152 Reserves and surplus 3,939 4,042 4,112 4,169 5,976 6,274 Current Liabilities 282 261 282 3
Slide 43: Standalone Financials | Cash Flow
Standalone Financials | Cash Flow Particulars (INR Mn ) FY12 FY13 FY14 FY15 FY16 9M FY17* Cash flow from operating activities Profit/ (loss) for the year 107 166 160 151 597 182 Adjustments (185) (84) (40) 35 (264) -45 Operating profit/(loss) before working capital changes (78) 82 121 186 333 137 Wo
Slide 44: Group Financials | Income statement
Group Financials | Income statement Particulars (INR Mn ) FY12 FY13 FY14 FY15 FY16 9M FY17* Total Revenue 1,878 1,860 4,075 3,465 2,928 3,267 Growth% -2% -1% 119% -15% -15% Cost of production 1,165 1,302 3,851 2,965 2,270 3,037 Gross Margin 713 558 224 500 658 229 Gross Margin% 38% 30% 5% 14% 22% 7%
Slide 45: Group Financials | Balance Sheet
Group Financials | Balance Sheet Particulars (INR Mn ) FY12 FY13 FY14 FY15 FY16 9M FY17* Equity and liabilities Shareholders' funds 3,914 4,029 3,826 3,818 5,237 5,046 Share Capital 130 130 130 130.4 152 152 Reserves and surplus 3,784 3,899 3,696 3,687 5,085 4,894 Minority Interest - - - - 5 -5 Non-
Slide 46: Group Financials | Cash Flow
Group Financials | Cash Flow Particulars (INR Mn ) FY12 FY13 FY14 FY15 FY16 9M FY17* Cash flow from operating activities Profit/ (loss) for the year 195 183 -112 85 188 -218 Adjustments (183) (83) (35) 56 (139) 94 Operating profit/(loss) before working capital 12 100 (147) 141 49 -124 changes Workin
Slide 47: Latest Quarter - Standalone Financial Performance
Latest Quarter - Standalone Financial Performance Particulars (Amounts in INR Mn) Q3 FY17 Q2 FY17 Q3 FY16 9M FY17 9M FY16 Net Sales / Income from Operations 1,970.7 1,916.0 835.0 609.2 720.3 Other Operating Income 20.3 81.3 4.0 7.0 51.2 Total Income from operations 1,991.0 1,997.3 839.0 616.2 771.5
Slide 48: Latest Quarter - Consolidated Financial Performance
Latest Quarter - Consolidated Financial Performance Particulars (Amounts in INR Mn) Q3 FY17 Q2 FY17 Q3 FY16 9M FY17 9M FY16 Net Sales / Income from Operations 1,029.6 1,052.1 731.5 3,246.2 2,006.4 Other Operating Income 4.0 7.0 55.0 20.3 88.8 Total Income from operations 1,033.6 1,059.1 786.5 3,266.
Slide 49: Thank You
Unique, Distinctive, Disruptive Thank You
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