Zee Entertainment Enterprises Limited · NSE:ZEEL
Zee Entertainment Enterprises — Investor Presentation (September 2018)
39 slides from Zee Entertainment Enterprises's investor presentation, September 2018
Slide 1: Zee Entertainment: Extraordinary Together
Extraordinary Together Zee Entertainment 3600 Entertainment Content Company
Slide 2: Presentation Flow
Presentation Flow Golden Age for Content Creators Domestic Broadcast Digital A to ZEE of Content Movies & Music Leadership International Live Events Consistent Financial Performance 2
Slide 3: Content consumption is at an inflection point
Content consumption is at an inflection point… CY14 CY17 CY21e TV households 183 224 168 (mn) 3G+4G subs 83 363 760 (mn) Multiplex 2,000 2,600 3,500 screens Private radio stations 243 324 400 Source: TRAI, FICCI M&E report, Industry estimates Content availability has increased across all mediums and
Slide 4: …with multiple levers for growth acceleration
…with multiple levers for growth acceleration Social integration, gamification Increasing device penetration Technological innovations Anytime, Anywhere Opportunity Engagement to see Ability to Content pay choice Rising discretionary spends Across languages, genres and formats Customized packages Be
Slide 5: M&E is witnessing an all-round growth in India
M&E is witnessing an all-round growth in India M&E industry revenue break-up Others CY20e Television 18% Category CY12-17 CAGR CY17-20e CAGR 15% CY17 Television 12.3% 9.3% 10% CY12 Print 6.2% 6.8% Movies 11% 42% 10% 15% & Music 45% 45% Digital 40.5% 23.5% 3% 8% Movies & Music 6.6% 7.5% 27% Others* 2
Slide 6: The big debate – TV or Digital?
The big debate – 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) 88 81.8% 84.1% 75.2% 78.7% 63.5% 48 31 32 31.3% 22 12 3 6 6.4% Brazil Singapore
Slide 8: TV and Digital are growing in tandem
TV and Digital are growing in tandem Since 4G roll-out, TV viewership has grown by 35% and video consumption on mobile has become substantial Average weekly impressions on TV (bn) Average daily time spent on video (min) Television Digital 28.7 26.2 31 27 21.2 220 225 227 1QFY17 1QFY18 1QFY19 2QFY17
Slide 9: Digital - A new growth opportunity
Digital - A new growth opportunity Content for >95% single TV On the go, audience not homes on demand available on TV Mobile becomes New viewers More viewership second screen 9
Slide 10: Incumbents to have an edge in the OTT space
Incumbents to have an edge in the OTT space Collaborative process for content creation IP rights Broadcasters bear the retained by the risk of the project broadcasters Independent producers ~2,000 hours of with limited risk appetite original content produced every week across 10+ languages Broadcast
Slide 11: TV + Digital to contribute over 60% of ad spends
TV + Digital to contribute over 60% of ad spends Digital expected to grow at ~2x of M&E ad growth, TV to maintain share Ad spends (INR bn) Share of ad revenue Others Television Digital Radio 572 6% 4% CY20e 450 204 4%6% CY17 382 332 146 115 29% 33% Television 89 Print 40% 40% 368 267 304 243 17% CY1
Slide 12: Drivers in place for subscription revenue growth
Drivers in place for subscription revenue growth Cable digitization TV subscription growth to continue, digital a new opportunity Subscription revenues (INR bn) 145 HD penetration 20 115 103 Growth Television Drivers Digital 125 99 109 ARPU growth CY17 CY18e CY20e Source: FICCI EY M&E Report 2018, T
Slide 13: A to ZEE of Content Leadership
A to ZEE of Content Leadership 13
Slide 14: ZEEL has evolved into a 360o entertainment content company
ZEEL has evolved into a 360o entertainment content company Zee TV Launch of ZEE5, Begins expansion Entry into sports Launch of Zee revamped OTT launched, India’s Music Company, into Indian regional broadcasting with platform with first private the music market with acquisition of Ten unrivalled ente
Slide 15: Content for all
Content for all Scripted fiction content in 8 languages Homegrown reality shows Soap operas, differentiated content Weekend family in each language entertainment Primary Target: 25+ Primary Target: Family women viewing Digital original content in 6 languages Movie and music catalogue across language
Slide 16: Strong position in the M&E eco-system
Strong position in the M&E eco-system ZEEL Business Overview Domestic Broadcast Strong ❖ 500 hours of content every week content across 8 languages creation ❖ 25 years of institutional learnings Digital expertise and consumer insights Strong ❖ Long-standing relationship with partnerships talent – wr
Slide 17: Domestic Broadcast
Domestic Broadcast 17
Slide 18: Pan-India Network - 37 channels, 9 languages
Pan-India Network - 37 channels, 9 languages Hindi General Hindi Movie Entertainment Cluster Regional Regional Movie Entertainment Cluster Niche Channels 18
Slide 19: Continuously improving viewership
Continuously improving viewership India’s #1 entertainment network gaining market share across markets Network share across broadcasters, 1QFY19 ZEEL has consistently increased its viewership share ZEEL, 19.2% 19.1% Others, 17.1% 16.4% 17.7% 31.0% 14.1% 14.9% 13.1% 11.6% Star, 18.2% Viacom, 10.5% So
Slide 20: Digital
Digital 20
Slide 21: ZEE5 – the ultimate digital entertainment destination
ZEE5 – the ultimate digital entertainment destination Content in 12 languages India - a multi-lingual country User interface in Limited familiarity with English multiple Indian languages Low online payment penetration AVOD + SVOD revenue model ZEE5’s content and technology has been customized for th
Slide 22: ZEE5's unrivalled content catalogue
ZEE5’s unrivalled content catalogue ZEE5 Originals ➢ Originals in 6 languages ➢ New shows every month ➢ Captivating shows Movies ➢ 3500+ movies ➢ 12 languages International Content ➢ 150+ digital premieres ➢ Shows from Turkey, Brazil, Pakistan, Korea etc. ➢ Dubbed/sub-titled in multiple Indian langu
Slide 23: Largest producer of original content across languages
Largest producer of original content across languages Tentpole shows Engaging reality shows Regional shows Never seen before movies Short-form content 12 WEEKS | 12 PREMIERES | 12 TOP DIRECTORS 22 original content released in 6 languages till date; plan to release ~90 in FY19 Differentiated content
Slide 24: ZEE5 - tracking well across metrics
ZEE5 - tracking well across metrics Top-5 entertainment apps on Android and iOS Strong start to ZEE5 ~3x growth in MAUs over the past 3 months ~30% MoM growth in video views over past 3 months Original content & Partnerships Technology movie and alliance features premieres Drivers for ZEE5 to be the
Slide 25: Movies and Music
Movies and Music 25
Slide 26: Zee Studios' approach to movie production
Zee Studios’ approach to movie production Focus on script and execution Portfolio approach A strong script is the most Produce movies across important criteria for movie budgets and multiple selection and not the cast languages to reduce risk Involvement in every step of movie making with control on
Slide 27: Leading movie production studios in India
Leading movie production studios in India Hindi Movies Regional Movies Received National Film Award for The Best Actor Zee Studios has established itself as one of India’s leading movie production studio in a short time 27
Slide 28: 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 Originals Partnerships - creating with major own music movie studios Direct relationship with distribution partners Digital streaming is the primary revenue source, contributing
Slide 29: International
International 29
Slide 30: International portfolio serving diaspora and local audience
International portfolio serving diaspora and local audience 39 international channels with 13 channels in 9 non- Presence in 170+ countries with reach of 578mn Indian languages Serves South Asian Diaspora as well as local audience ZEE5 rollout in international markets will help expand in select coun
Slide 31: A strong global presence
A strong global presence 39 International Channels 13 Local Language Channels Logos of ZEEL’s channels in local languages 31
Slide 32: Live Events
Live Events AGRIPPING HISTORICALDRAMA = g,! * 14™ APRIL & 7™ MAY 7:30 PM TATA THEATRE, NCPA
Slide 33: Live events are taking off
Live events are taking off Organized events industry set to grow Live events offer another touchpoint with audience Organized event industry market size (INR bn) 109 65 56 CY16 CY17 CY20e Source: FICCI-EY M&E Report 2018 India is opening up to ticketed live events which presents a growth opportunity
Slide 34: Financials
Financials 34
Slide 35: FY18 breakdown of revenues and costs
FY18 breakdown of revenues and costs Revenues and EBITDA (adj. for sale of Sports) have grown at 16% and 17% CAGR respectively over the past 5 years Revenue breakdown – INR 66,857 mn Costs breakdown – INR 46,095 mn Others, 6.8% EBITDA, 31.1% Operating , 37.8% Subscription, 30.3% Advertising, 62.9% A
Slide 36: Robust growth in advertising and subscription revenues
Robust growth in advertising and subscription revenues Industry-leading advertising revenue growth continues; Steady growth in subscription 42,048 INR mn 36,735 33,652 26,603 23,081 19,639 18,225 15,841 16,302 16,388 13,184 14,240 11,648 9,223 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Advertising revenues
Slide 37: Consistent profitable growth
Consistent profitable growth ZEEL’s EBITDA margins at 30%+ is amongst the best in the M&E industry 34.6% 33.5% 32.5% 33.0% 31.1% 30.1% 29.9% 29.9% 27.2% 25.8% 25.7% 26.0% 24.3% EBITDA CAGR 18.8% FY12 FY13 FY14 FY15 FY16 FY17 FY18 EBITDA margins EBITDA margins (ex-Sports) * *ZEEL divested its sports
Slide 38: Consistent payout to shareholders
Consistent payout to shareholders ZEEL’s dividend payout has been consistent at 25%+ over the past 5-6 years Consistent dividend distribution Payout to shareholders is higher than annual equity dividend FY12-18 (Cumulative) 63.2% 31.2% 30.3% 28.4% 27.1% 26.6% 26.1% 25.2% 30.2% 25.7% FY12 FY13 FY14 F
Slide 39: Thank You
Thank You
Zee Entertainment Enterprises — Investor Presentation (September 2018) on 6ix