Zee Entertainment Enterprises Limited · NSE:ZEEL
Zee Entertainment Enterprises — Investor Presentation (June 2021)
46 slides from Zee Entertainment Enterprises's investor presentation, June 2021
Slide 1: Zee Entertainment
Zee Entertainment 360 0 Entertainment Content Company
Slide 2: Presentation Flow
Presentation Flow Content consumption on a secular Domestic growth trend Broadcast Digital A to ZEE of Movies & Content Music Leadership International Live Consistent Events Financial Performance 2
Slide 3: Content consumption is taking off
Content consumption is taking off An adult spends on average around a quarter of his awake time consuming some form of content.. And it is expected to grow further Social integration, gamification Growing across languages, genres and formats Tech innovations Better quality content Content Engagement
Slide 4: Content choices have exploded and consumption has moved from plain viewership to engagement
Content choices have exploded and consumption has moved from plain viewership to engagement and experience… Content options have exploded with multiple Content consumption has moved from passive choices in every genre and new formats viewing to holistic experience with emerging engagement at multipl
Slide 5: …with multiple options for the consumer
…with multiple options for the consumer ..giving multiple options for consuming same content… MOBILE SOCIAL TV RADIO NEWSPAPER NEWS FEED NEWS NEWS Platform penetration at an all-time ..internet has removed time and place high and growing… constraints, growing total consumption 210mn 450mn+ 3,500+ 5
Slide 6: TV or Digital?
TV or Digital? 6
Slide 7: Indian market is different on two key parameters
Indian market is different on two key parameters Low TV ARPUs and wired broadband penetration make TV the preferred medium for content consumption Pay TV ARPU (USD per month) Wired broadband penetration (% of total HHs) 76 96% 89% 90% 84% 51 67% 45 31 45% 4 4 7% Singapore UK US India Japan China USA
Slide 8: TV offers abundant choices at an affordable price
TV offers abundant choices at an affordable price 200+ channels ~2,000 hours of new content every week Monthly tariff of $4 GEC, Movies, News, Kids, Sports, Music, Infotainment Entertainment for the family 8
Slide 9: TV and digital are growing in tandem in India…
TV and digital are growing in tandem in India… Monthly impressions on TV (mn) Smartphone users (mn) 32,390 442 303 28,240 Mar'18 May'21 Mar'18 Mar'21 Source: BARC Source: CLSA research report Daily time spent per viewer (minutes) 219 234 47 28 2018 2021 Television Video streaming app Source: BARC, F
Slide 10: ..with digital presenting a new growth opportunity
..with digital presenting a new growth opportunity Content for >95% single TV audiences who are On the go, homes not regularly on demand available on TV 10
Slide 11: Will the revenue shift? Revenues will follow eyeballs
Will the revenue shift? Revenues will follow eyeballs 11
Slide 12: Television currently has a higher reach and engagement…
Television currently has a higher reach and engagement… 835 450 Reach (mn) TV Reach (monthly) Online video consumers Source: FICCI EY M&E Report 2020, Industry estimates 234 Engagement 47 (Daily minutes) TV OTT Video Source: BARC, FICCI EY M&E Report 2020 983 Impact (Weekly bn minutes) 8 TV OTT Vide
Slide 13: …but digital offers a differentiated value proposition to advertisers
…but digital offers a differentiated value proposition to advertisers and is expanding the total market Targeted ads, Valuable data New nudge for and analytics advertisers transaction Helps to improve Helps in better product and ~400K SMEs use digital conversion marketing strategy advertising 13
Slide 14: TV + Digital to capture over 75% of ad spends
TV + Digital to capture over 75% of ad spends Digital expected to grow at ~2x of TV ad growth Radio Others Ad spends (INR bn) Television Digital Ad spend share CY23e 3% 4% 685 Print 4%6% CY20e CY20 18% 512 38% 538 CY17 40% 443 340 17% Television 192 234 192 33% 320 304 345 Digital 251 37% CY19 CY20
Slide 15: Drivers in place for subscription revenue growth
Drivers in place for subscription revenue growth Increasing pay TV homes Digital subscription to grow at a faster pace on a much smaller base Video subscription revenues (INR bn) HD 85 penetration 29 57 44 Growth Drivers 468 502 434 456 ARPU growth CY19 CY20 CY21e CY23e Television Digital Source: FI
Slide 16: Will content cost rise?
Will content cost rise? 16
Slide 17: Cost to move differently for different categories of content
Cost to move differently for different categories of content Volume Cost Inflation Abundant availability of talent; Shows (TV) Broadcasters enjoy high control over production cost; 100,000+ hours of content produced annually Strong demand for established talent; Outdoor shoot and limited episodes ra
Slide 18: A to ZEE of Content Leadership
A to ZEE of Content Leadership 18
Slide 19: ZEEL has evolved into a 360o entertainment content company
ZEEL has evolved into a 360o entertainment content company Launch of Zee 2021 Music Company, the music 2018 publishing label Begins Entry into sports expansion into broadcasting Indian regional with acquisition Zee TV market with of Ten Sports ZEE 4.0 launched, India’s Marathi 2017 first private ent
Slide 20: Diverse content offering for a diverse Indian audience…
Diverse content offering for a diverse Indian audience… Scripted fiction content in 10 languages Homegrown reality show formats Family shows; Weekend family Differentiated content entertainment in 10 languages Primary Target: All age Primary Target: 25+ groups, family viewing women, family viewing D
Slide 21: ….reaching consumers wherever they are
….reaching consumers wherever they are Family viewing at home Anytime, Anywhere Multiplexes Live audience connect On demand music catalogue 21
Slide 22: Strong position in the M&E eco-system
Strong position in the M&E eco-system 30 years of content creation expertise and strong partnerships across the content ecosystem Strong consumer connect through TV channels, OTT platform, movies, music, events 3,000+ brands reach their consumers through Zee network Strong partnerships across distri
Slide 23: Domestic Broadcast
@ Domestic Broadcast ——— 23
Slide 24: Pan-India network with the widest Indian language footprint
Pan-India network with the widest Indian language footprint Hindi General Hindi Movie Entertainment Cluster Regional Regional Entertainment Movie Cluster Niche Channels 49 channels | 11 language | 600mn+ weekly reach | 160bn+ weekly viewing minutes 24
Slide 25: Continuously improving viewership….
Continuously improving viewership…. Over the past decade, ZEEL has consistently increased its viewership share; Disruptions led by NTO, DD FreeDish portfolio shuffle and COVID impacted growth over last 24 months 19.5% 18.7% 18.9% 17.7% 17.1% 16.4% 16.3% 14.9% 14.1% Gains across markets 13.1% 11.6% E
Slide 26: …especially in South market and movies genre
…especially in South market and movies genre ZEE’s share in South markets has seen a significant improvement, driven by popular fiction and non-fiction shows Viewership share of South portfolio 19.9% 14.7% 9.9% FY16 FY18 FY21 Share of South GEC and movie channels amongst all local language channels
Slide 27: Digital
@ Digital 27
Slide 28: ZEE5's freemium model offers content for every Indian
ZEE5’s freemium model offers content for every Indian Free 40+ Latest episodes everyday; Free movies across Zee Music Company channels popular old shows 10+ languages video catalogue Original Shows Blockbuster movies Rs. 499 per year Hollywood and 100+ live channels for and movies across languages i
Slide 29: Biggest Indian original content catalogue for SVOD consumers
Biggest Indian original content catalogue for SVOD consumers With 200+ original shows and movies, ZEE5 is already the biggest producer of digital exclusive content in India ZEE5 original content is primarily targeted for the younger audience that are largely under-served on TV 29
Slide 30: AVOD offering enables access to growing online audience
AVOD offering enables access to growing online audience TV shows and an expansive movie library for AVOD users Catch-up content for TV audience Connects with audience not ready to pay for content yet Acts as a funnel for conversion to SVOD Building own Ad Tech platform for better monetization 30
Slide 31: Movies and Music
@ Movies and Music 31
Slide 32: Zee Studios' approach to movie production
Zee Studios’ approach to movie production Multi-pronged approach Zee Studios’ production/acquisition/distribution model has enabled it to become #3 studio in India and have a strong presence in movie production and monetisation eco-system Strong synergies with other businesses Portfolio approach Zee
Slide 33: Leading movie production studio in India
Leading movie production studio in India Hindi Movies Regional Movies Zee Studios has established itself as one of India’s leading movie production studios 33
Slide 34: Zee Music Company – India's fastest growing music label
Zee Music Company – India’s fastest growing music label Diversified Music Catalogue India’s only pan-India music label ZMC Partnerships Originals - with major creating movie own music studios Direct relationship with distribution partners Zee Music Company (ZMC) is building a strong portfolio in Hin
Slide 35: International
International 35
Slide 36: International portfolio serving diaspora and local audience
International portfolio serving diaspora and local audience 34 international channels with 10 channels in 8 non- Presence in 170+ countries with a reach of 500mn+ Indian languages Serves South Asian diaspora as well as local audience ZEE5 is ramping up its presence across global markets in select co
Slide 37: Live Events
G Live Events 37
Slide 38: Zee Live creating IPs for online and on-ground events
Zee Live creating IPs for online and on-ground events MUSIC & COMIC CULTURE COMMUNITY India is opening up to ticketed live events which presents a growth opportunity Zee Live is dedicated to all forms of live entertainment including Festivals, Theatre, and Concerts 38
Slide 39: ZEE 4.0 – All-round approach for growth in the new landscape
ZEE 4.0 – All-round approach for growth in the new landscape ZEE 4.0 With five Gs at the foundation, the new philosophy is geared towards a holistic approach to content creation, monetization and growth 39
Slide 40: Financials
@ Financials 40
Slide 41: Robust growth in advertising and subscription revenues
Robust growth in advertising and subscription revenues Industry-leading ad revenue growth for almost a decade along with a strong growth in subscription (bn INR) Ad Revenue Domestic Subscription Revenue* 50.4 46.8 42.0 36.7 37.5 33.7 26.6 25.6 27.1 Subscription 23.8 has become 19.6 18.2 19.2 15.8 16
Slide 42: Investments in ZEE5 to impact margins in the near term
Investments in ZEE5 to impact margins in the near term ZEEL’s underlying EBITDA margins at 30%+ is amongst the best in the M&E industry 33.0% 30.1% 29.9% 32.3% 31.1% 29.9% 27.5% 25.7% 26.0% 23.2% COVID Impact FY15 FY16 FY17 FY18 FY19 FY20* FY21 Consolidated EBITDA Margin EBITDA Margin excl. Sports C
Slide 43: Revenues and cost breakdown
Revenues and cost breakdown (INR mn) (INR mn) Revenue breakdown Costs breakdown 81,299 77,298 5,614 7,381 22,377 17,931 28,873 32,430 12,832 12,898 7,805 8,183 46,811 37,488 38,285 32,774 FY20 FY21 FY20 FY21 Advertising Subscription Other Sales Operating Cost Personnel A&P and other EBITDA 43
Slide 44: Consistent payout to shareholders
Consistent payout to shareholders ZEEL’s cumulative shareholder payout has been ~60% of total PAT over FY15-21 Shareholder Payout as % of PAT* 94.3% 74.5% 65.0% 47.5% 41.4% 43.6% 39.4% FY15 FY16 FY17 FY18 FY19 FY20 FY21 Equity Equity Equity Dividend RPS Dividened & Redemption *Payout calculated on P
Slide 45: Condensed Balance Sheet
Condensed Balance Sheet Assets (Rs. mn) Mar’21 Mar’ 20 Liabilities (Rs. mn) Mar’21 Mar’ 20 Non-Current Assets Equity Capital 1,01,074 93,549 Fixed assets 12,667 13,979 Non-Current Liabilities Investments 316 478 Preference shares - 2,975 Other financial assets 347 429 Other borrowings 195 526 Income
Slide 46: Thank You
Thank You
Zee Entertainment Enterprises — Investor Presentation (June 2021) on 6ix