Shemaroo Entertainment Ltd. · NSE:SHEMAROO
Shemaroo Entertainment — Investor Presentation (March 2022)
53 slides from Shemaroo Entertainment's investor presentation, Mar 3, 2022
Slide 1: Exchange filing cover letter
— = = Ref No.: SEL / Reg. 30 ~ LODR /Mar-22 The Secretary, National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla Complex Bandra (E), Mumbai-400 051. NSE Symbol: SHEMAROO Dear Sir/Madam, March 03, 2022 ’ The Secretary, . BSE Limited “Phiroze Jeejeebhoy Towers ‘Dalal Street, ~ Mumbai -
Slide 2: Shemaroo Entertainment Limited | Investor Presentation March 2022
1 Shemaroo Entertainment Limited | Investor Presentation March 2022
Slide 3: About Shemaroo
2 ABOUT SHEMAROO
Slide 4: At a Glance
3 At a Glance Offering content across Bollywood, Strong content offerings Devotional, Regional, Comedy, in multiple countries Kids, Health and Lifestyle and across the globe more to leading platforms One of the largest In-depth understanding content houses with of consumers’ 4,000+ content library e
Slide 5: Overview
4 Overview • Founded in 1962 as a book circulating library, today Shemaroo Entertainment Limited (Shemaroo) is a leading Indian content powerhouse with a global reach, headquartered out of Mumbai and employs 550+ people. • Shemaroo is a pioneer in content aggregation and distribution in India and gl
Slide 6: Key Milestones
5 Key Milestones Commenced Launched Home Evolved into a distributing content pre-loaded Video Digital post content house over digital media Refreshed the devotional distribution production by acquiring platforms like brand identity content started started perpetual rights YouTube after 55 years devi
Slide 7: Awards & Accolades
6 Awards & Accolades Amazing OTT Newcomer NASSCOM Awards, 2019 for YouTube Diamond play Award at OTTV Mumbai Shrimad Bhagavad Gita button for YouTube channel 2019 Audio Book Shemaroo Filmi Gaane ShemarooMe Best Marketing Strategy Best Brand Campaign for YouTube Diamond play button in OTT at BCS Ratn
Slide 8: Experienced Leadership
7 Experienced Leadership Raman Maroo – Chairman and Managing Director - He has an experience of approximately 46 years, out of which he has spent around 37 years in the Media and Entertainment Industry. He has been instrumental in the Group‘s expansion into television rights syndication as well as t
Slide 9: Our Independent Board
8 Our Independent Board Gnanesh Gala - Independent Director - He has around 37 years of experience in the Educational Publishing Industry. He was the President (Finance) of Navneet Publications (India) Limited for more than 23 years and is presently the Managing Director of the said company Dr. (CA)
Slide 10: Key Strengths
9 Key Strengths • Presence across television, digital media and 06 • Brand in existence for over 55 years other media 01 • The “Shemaroo” brand has high consumer • Distribution reach is a key advantage, as Diversified Established recall and media visibility company is able to offer “anytime anywhere
Slide 11: Content
10 CONTENT
Slide 12: The Business Model
11 The Business Model Complete Ownership Rights In-House Creation Limited Ownership Rights Perpetual Rights – Complete ownership rights Aggregate Rights - Rights limited by either for distribution across all geographies, period of usage, platforms, geography or a platforms, and perpetual period comb
Slide 13: Content Powerhouse
12 Content Powerhouse Digital Media Shemaroo is one of the largest Indian Content Houses Traditional Media ~45% Revenue Contribution ~55% Revenue Contribution YouTube Broadcasters: Shemaroo Filmi Gaane, Shemaroo Ent, Shemaroo Zee, Sony, Star, Viacom18, etc. Movies, etc. Cable Operators: Syndication
Slide 14: Shemaroo's Role In The Value Chain
13 Shemaroo’s Role In The Value Chain Fragmented One of the Monetization Production Largest Content Platforms Houses Houses • Multiple production • Creates Value: Increasing the life of the movie and creating • Require unbundled and houses / content owners value for all the stakeholders re-bundled c
Slide 15: Shemaroo's Role In A Movie Lifecycle
14 Shemaroo’s Role In A Movie Lifecycle • Shemaroo typically participates in the second and subsequent cycles of film monetisation • These subsequent cycles of film monetisation have been typically growing due to various factors like increasing advertisement spends, digitization, etc. • There is a l
Slide 16: Content Selection Criteria
15 Content Selection Criteria Shemaroo uses proprietary tools and considers various other factors for content valuation as shown below. The company purchases forward rights to movies and decides on the cost of the content after it is sure to achieve a desired return on investment at a portfolio leve
Slide 17: Content IPs - Best of Bollywood
16 Content IPs - Best of Bollywood Ownership of over 2,000 Hindi Film Content Titles Bollywood Classics 1990’s 2000’s 2010’s
Slide 18: Content IPs - Regional & Special Other Content
17 Content IPs - Regional & Special Other Content MARATHI COMEDY SPECIAL INTEREST CONTENT REGIONAL TITLES GUJARATI KIDS DEVOTIONAL PUNJABI 1,780+ Number of Titles 370+ Content titles
Slide 19: Digital Media
18 DIGITAL MEDIA
Slide 20: Digital Media Industry
19 Digital Media Industry Digital Advertising revenues in India remained flat in 2020, despite a fall in Digital Industry Revenues (INR Bn) the April to June quarter. It is expected to grow at a 21% CAGR over the period FY20-FY22 to reach INR 340 Bn 340 Digital Subscriptions (audio and video) revenu
Slide 21: Strategic Drivers for Growth in Digital Media
20 Strategic Drivers for Growth in Digital Media Broadband Technology Rise of OTT Rapid digital adoption in Infrastructure • Growing availability of • Increase in the non-metros • Increasing reach of sub INR 5,000 smart number of OTT • Next wave of internet video 4G and fall in data phones destinati
Slide 22: Digital Potential
21 Digital Potential Rising Internet Users (Mn) Increasing Share of Regional Language Video Consumption Internet users are rising because of the 5% 7% following factors: 37% • Low-cost smart phones 50% 831 795 • Improved rural internet connectivity • Rising regional language popularity 56% 45% 719 •
Slide 23: Shemaroo In Digital Media
22 Shemaroo In Digital Media Shemaroo was one DigitalMedia Digital Media Revenue Revenue (INR (INRMn) Mn) of the early Indian media companies to syndicate its library 1,978 to the high growth 1,718 digital media 1,494 1,305 1,350 platforms, thereby gaining early mover 923 advantage 635 • The company
Slide 24: ShemarooMe
23 ShemarooMe • Over 5,000 Hours+ content across Bollywood, Devotional, Regional and Kids • Relaunched ShemarooMe's Gujarati proposition in April 2021, positioning it as a premier Gujarati-focused OTT service • Aims to make every Gujarati fall in love with Gujarati Entertainment once again • Content
Slide 25: YouTube
24 YouTube Shemaroo’s content on YouTube gets over 3 Bn views a month at an average of more than 100 Mn views per day YouTube Views Growth • The company’s flagship channels ‘ShemarooEnt‘ crossed 35 Mn subscribers and ‘FilmiGaane’ crossed 58 Mn subscribers on YouTube • High viewership, content connec
Slide 26: Traditional Media
TRADITIONAL MEDIA Wit
Slide 27: Television Industry
26 Television Industry Industry Dynamics Under Penetrated Rural India (TV) (Mn Homes) • Television syndication is the sale of content rights to broadcasters No. of Households Penetration 200 • The Indian television broadcasting segment has multiple genres and movies as a genre is second in terms of
Slide 28: TV - Choice of Masses & Headroom for Growth
27 TV - Choice of MASSES & Headroom for Growth TV will continue to be one of the most popular media consuming platforms CAGR Segment (INR Bn) 2019 2020 2021P 2023P (2020-23P) TV 787 685 760 847 7% Digital media 221 235 291 425 22% Print 296 190 237 258 11% Films 191 72 153 244 50% Animations & VFX 9
Slide 29: TV Industry Performance and Projection
28 TV Industry Performance and Projection TV Industry Performance (INR Bn) India’s Pay TV ARPU is one of the lowest globally 847 787 760 Countries Pay TV ARPU pm Digital ARPU pm 685 467 502 US 456 434 $40-80 $8-12 320 304 345 UK 251 $25-40 $6-12 2019 2020 2021E 2023E Advertisement Subscription Total
Slide 30: Shemaroo in Traditional Media
29 Shemaroo in Traditional Media Television Syndication • Shemaroo has a diverse content library which it syndicates to various satellite Channels, Traditional Media Revenue (INR Mn) cable and terrestrial networks • Considering the vast and diverse library of Shemaroo, it can be easily assumed that
Slide 31: Digging deeper into the Regional markets
30 Digging deeper into the Regional markets • Shemaroo launched its first satellite FTA channel named as ‘Shemaroo MarathiBana’ in Dec’19 targeting to be a prominent leader in the Marathi movie genre • The company has over the years built a strong library in the regional space and with the launch of
Slide 32: Reaching out to the Hindi Speaking Markets
31 Reaching out to the Hindi Speaking Markets • Shemaroo launched its second satellite FTA channel named “Shemaroo TV” in May 2020 • Targeted to be a prominent leader in the Hindi GEC genre • Shemaroo TV will showcase a perfect mix of originals and iconic shows, which can be consumed for the first-t
Slide 33: Preloaded Audio Devices
32 Preloaded Audio Devices • Launched in FY2020 with seven preloaded devices with devotional content; namely Srimad Bhagavad Gita, Bhakti Bhajan Vani, Amrit Bani, Ibaadat, Ganesh Vani, Krishna Bhajan Vani and Sai Bhajan Vani • Available on major online retail platforms like Amazon, Flipkart, Nykaa,
Slide 34: Strategy
33 STRATEGY
Slide 35: India's M&E sector among fastest growing globally
34 India’s M&E sector will be one of the fastest growing globally in terms of both consumer and advertising spends, reaching ~INR 3 trillion by 2025 India M&E Sector Revenue (in INR Bn) +15% p.a. • The Indian M&E sector is expected 2,980 to increase at a 15% CAGR to reach 2,570 INR 2.98 trillion by
Slide 36: Focus on fastest growing segments within Television and Digital
35 Shemaroo’ strategy will be to focus on the fastest growing segments within the two largest verticals of M&E i.e., Television and Digital 2021E 2025E TELEVISION Subscription Advertising Subscription Advertising INR 45,600 Crs + INR 30,400 Crs INR 55,200 Crs + INR 39,200 Crs CAGR (2021-25): 5% CAGR
Slide 37: India establishing itself as a major force in the digital economy
36 India is establishing itself as a major force in the digital economy on the back of a strong foundation of digital infrastructure and adoption Internet Users and Penetration Smartphone Users and Penetration 1,000 61% 70% 600 66% 70% 59% 62% 54% 60% 500 61% 65% 800 46% 50% 400 57% 60% 600 34% 40%
Slide 38: Digital media expected to continue to close the gap with television
37 Digital media is expected to continue to close the gap with television Digital Media Industry (in INR Bn) AVOD vs. SVOD (in INR Bn) 125 621 57 495 425 234 291 221 235 2021E 2025E 2019 2020 2021E 2023E 2025E Advertising Subscription • The digital media industry is estimated to have registered a gr
Slide 39: Covid-19 has brought a systemic shift in digital consumption
Covid-19 has brought about a systemic shift in terms of digital userbase and 38 consumption habits YT Users in India (in Mn) Number of SVOD Subscriptions (in Mn) 265 373 459 20-25 50-55 70-80 2019 2020 2021 2019 2020 2021 Number of Video Streaming Hours (in Bn) OTT Budgets for Originals 126 177 192
Slide 40: Internet base in most states larger than some developed countries
Internet base in most states is larger than the entire population of some developed 39 countries, establishing a clear need for content in local languages Internet Subscribers 3 Yr Growth Total Internet Subscriber Base (in Mn) UP 106.38 Mn 61% Bihar 57.93 Mn 77% Gujarat 51.32 Mn 43% 719 795 831 Punj
Slide 41: Three-pronged strategy for growing digital business
40 Shemaroo will follow a three-pronged strategy for growing its digital business 1 Growth in revenue on 2 Pursue regional and AVOD platforms targeted segments on SMe platform 3 Partnering with mainstream digital platforms for their content needs 40
Slide 42: Why will Broadcasting continue to thrive in India?
41 Why will Broadcasting continue to thrive in India? Largest Media Headroom for Consumption Price Arbitrage vs. Most Suitable Vehicle Vehicle Growth Remains Strong Digital for Brand Creation ~Hours of Consumption • Highest share of 32% of Media 300 Mn Per Day Pay TV Digital ARPU p.m. ARPU p.m. scre
Slide 43: Broadcasting will continue to be the largest segment within M&E
42 Broadcasting will continue to be the largest segment within the M&E sector Broadcasting Industry (in INR Bn) Ad Volumes (in Mn Secs) 2021 1,824 944 2020 1,496 787 847 760 685 2019 1,542 2019 2020 2021E 2023E 2025E • The broadcasting industry in 2021 is estimated to be almost at the 2019 levels, g
Slide 44: Migration to FreeDish will continue
43 The migration to FreeDish will continue with more channels and better content offerings 1 Slowdown in Pay TV base and increase in FreeDish base Subscriber Base (in Mn) 71.0 68.9 46.7 37.0 45.5 42.0 2020 2021 (Est.) DTH Cable (Top 13 Operators) FreeDish 2 Further migration to FreeDish and addition
Slide 45: Building a platform for brands to target the growing FTA audience
44 Shemaroo aims to build a platform for brands to target the growing FTA audience by addressing the current gaps in content offerings Rationale • Tap into a large advertising revenue space • Strong brand equity and consumer connect Shemaroo strategy will be to • Television is a gateway to a stronge
Slide 46: Financials
45 FINANCIALS
Slide 47: Consolidated Income Statement (Ind-As)
46 Consolidated Income Statement (Ind-As)
Slide 48: Consolidated Balance Sheet (Ind-As)
47 Consolidated Balance Sheet (Ind-As)
Slide 49: Historical Consolidated Financial Charts
48 Historical Consolidated Financial Charts Operational Revenue* (INR Mn) EBITDA (INR Mn) and EBITDA Margin (%) 2,000 35.00% 29.16% 27.79% 5,678 1,600 30.00% 4,891 5,131 1,578 25.00% 1,200 1,426 20.00% 14.97% 3,111 2,878 800 15.00% 9.42% 768 10.00% 400 4.04% 5.00% 126 271 - 0.00% FY18 FY19 FY20 FY21
Slide 50: Rights Accounting Policy – Charge To P&L
49 Rights Accounting Policy – Charge To P&L Aggregated Rights Long Term Rights (<10 years) (>=10 years) Specific Bundled Rights First 5 years - Next 5 years – (Satellite + 65% in year of 35% in year of Rights Digital Rights) sale sale Satellite, Satellite rights - Satellite rights - overseas, etc. -
Slide 51: Capital Market Data
50 Capital Market Data 140% 120% 100% 80% 60% 40% 20% 0% -20% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Shemaroo Sensex Shareholding Pattern as on 31st December, 2021 Price Data (As of 31st December, 2021) INR Face Value 10.00 Market Price 126.20 Public 30.8
Slide 52: Disclaimer
51 Disclaimer Shemaroo Entertainment Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in
Slide 53: Thank You
52 THANK YOU
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