Shemaroo Entertainment Ltd. · NSE:SHEMAROO
Shemaroo Entertainment — Investor Presentation (December 2020)
43 slides from Shemaroo Entertainment's investor presentation, Dec 8, 2020
Slide 1: Covering letter to exchanges
Ref No..: SEL / Reg.. 30 – LODR R /Dec‐20 / 01 Deccember 08, 2020 The Seccretary, The Seccretary, Nationaal Stock Excchange of In ndia Limite ed BSE Lim mited Exchange Plaza, Phirozee Jeejeebho oy Towers Bandra‐Kurla Complex Dalal Sttreet, Bandra (E), Mumbai‐400 051.. Mumbaai ‐ 400 0233. NSE Symmbol
Slide 2: Shemaroo Entertainment Limited | Investor Presentation December 2020
1 Shemaroo Entertainment Limited | Investor Presentation DECEMBER 2020
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 Buddhichand Maroo – Chairman - He is the founder of Shemaroo Group. He started the business with a book library in 1962 and gradually transformed it into a well-diversified corporate in the Media and Entertainment Sector. He has an experience of approximately 58 years, out o
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 ~40% Revenue Contribution ~60% 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 & 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 grew by 24% over FY19 to reach INR Digital Industry Revenues (INR Bn) 199 Bn in FY20. It is expected to grow at a 21% CAGR over the period FY20- FY22 to reach INR 292 Bn 292 Digital Subscriptions (audio and video) revenues in India grew
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 718 Internet users are rising because of the 5% 604 7% following factors: 268 37% 213 • Low-cost smart phones 50% • Improved rural internet connectivity 391 450 • Rising regional language populari
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 platforms, thereby 1,305 gaining early mover 923 advantage 726 635 373 • The company cat
Slide 24: ShemarooMe
23 ShemarooMe • Is a hybrid (subscription + advertisement) digital platform launched in FY19 • Is available in more than 150 countries globally • Offers a vast content library across Bollywood, Gujarati, Marathi, Punjabi, Bengali, Devotional and Kids genres • Works on a B2B2C partnership model and i
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 26 Mn subscribers and ‘FilmiGaane’ crossed 42 Mn subscribers in Sept 2020 on YouTube • High viewership, c
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 platform. % % CAGR Segment (INR Bn) FY20 FY22P Contribution Contribution (2020-22P) in FY20 in FY22P TV 778 769 -1% 44% 41% Digital and OTT 218 338 25% 12% 18% Print 306 296 -2% 17% 16% Film
Slide 29: TV Industry Performance and Projection
28 TV Industry Performance and Projection TV Industry Performance (INR Bn) Broadcasters’ Revenue (INR Bn) India’s Pay TV ARPU is one of the lowest globally 778 769 420 416 Countries Pay TV ARPU Digital ARPU 708 368 pm pm 158 157 516 511 151 US 491 $40-80 $8-12 262 217 258 262 217 258 UK $25-40 $6-12
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 7 preloaded devices with devotional content in FY20; namely Srimad Bhagavad Gita, Bhakti Bhajan Vani, Amrit Bani, Ibaadat, Ganesh Vani, Krishna Bhajan Vani and Sai Bhajan Vani • Distributed across 20 states in India with a retail presence of +2,500 outlets • Ava
Slide 34: Strategy
33 STRATEGY
Slide 35: Road Ahead
34 Road Ahead “Shemaroo’s multifold growth over the years has been a result of its excellent relationships with its partners in the media industry. Shemaroo will continue to strengthen its position in the industry by providing unparalleled value addition to all stakeholders” Riding on the Digital Wi
Slide 36: Financials
35 FINANCIALS
Slide 37: Consolidated Income Statement (Ind-As)
36 Consolidated Income Statement (Ind-As) Particulars (INR Mn) FY18 FY19 FY20 H1-FY21 Revenue from Operations 4,891 5,678 5,131 1,455 Total Expenses 3,465 4,100 4,363 1,511 EBITDA 1,426 1,578 768 (56) EBITDA Margin (%) 29.16% 27.79% 14.97% (3.86)% Other Income 12 18 30 9 Depreciation 51 56 75 37 Fin
Slide 38: Consolidated Balance Sheet (Ind-As)
37 Consolidated Balance Sheet (Ind-As) Equity and Liabilities (INR Mn) FY19 FY20 H1-FY21 Assets (INR Mn) FY19 FY20 H1-FY21 Shareholders Fund Non Current Assets Share Capital 272 272 272 Fixed Assets Other Equity 5,445 5,698 5,477 Property, Plant & Equipment 306 308 278 Total Equity 5,717 5,970 5,749
Slide 39: Historical Consolidated Financial Charts
38 Historical Consolidated Financial Charts Operational Revenue* (INR Mn) EBITDA (INR Mn) and EBITDA Margin (%) 5,678 5,131 2,000 35.00% 4,891 29.96% 29.16% 28.69% 27.79% 4,255 1,600 30.00% 3,751 1,578 25.00% 1,200 1,426 1,275 14.97% 20.00% 800 1,076 15.00% 768 10.00% 400 5.00% - 0.00% FY16 FY17 FY1
Slide 40: Rights Accounting Policy – Charge To P&L
39 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 41: Capital Market Data
40 Capital Market Data 20% 0% -20% -40% -60% -80% -100% Oct/19 Nov/19 Dec/19 Jan/20 Feb/20 Mar/20 Apr/20 May/20 Jun/20 Jul/20 Aug/20 Sep/20 Shemaroo Sensex Share Holding Pattern as on 30th September, 2020 Price Data (As of 30th September, 2020) INR Face Value 10.0 Market Price 57.5 Public 23.91% 52
Slide 42: Disclaimer
41 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 43: Thank You
42 THANK YOU
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