Balaji Telefilms Limited · NSE:BALAJITELE
Balaji Telefilms — Investor Presentation (December 2015)
58 slides from Balaji Telefilms's investor presentation, Dec 8, 2015
Slide 1: Cover letter to stock exchanges: Updated Corporate Presentation
SBalaji “Celefilms L9, C-13, Balaji House, Dalia Industrial Estate.Opp. Laxmi Industries New Link Road. Andheri (West). Mumbai - 400 053 Tel.:40698000 - Fax : 40698181 / 82 / 83 Website : www.balajitelefilms.com CIN No. - L99999MH1994PLC082802 December 8, 2015 To, Bombay Stock Exchange National Stoc
Slide 2: Corporate Presentation
DECEMBER 2015 Corporate Presentation Unique, Distinctive, Disruptive Private and Confidential Unique, Distinctive, Disruptive
Slide 3: Contents
Contents 1 About Balaji Telefilms 2 Growth: Three-pronged Strategy 3 Television Production 4 Movies 5 ALT Digital - Digital B2C 6 Group Financials 2 Unique, Distinctive, Disruptive Private and Confidential
Slide 4: About Balaji Telefilms
Unique, Distinctive, Disruptive About Balaji Telefilms
Slide 5: Board of Directors
Board of Directors Jeetendra Kapoor - Chairman Shobha Kapoor - Managing Director • Jeetendra Kapoor is a popular movie star throughout the • Shobha Kapoor has been instrumental in transforming 1970s and 1980s and has starred in more than 200 the Company from its small beginnings in 1994 to India’s M
Slide 6: Board of Directors (cont'd)
Board of Directors (cont’d) Sameer Nair - Group CEO Pradeep Sarda - Independent Director • Former Programming Head, COO, CEO of Star India, and • The Chairman of the Sarda Group of Companies and the Founder/CEO of NDTV Imagine, later christened Turner Chairman of the Governing Board of the Ecole Mon
Slide 7: Board of Directors (cont'd)
Board of Directors (cont’d) Mr. D. K. Vasal - Independent Director Mr. V. B. Dalal - Independent Director • Over 30 years of experience in the service and • Over 40 years of experience in Audit and Direct Taxation manufacturing industry and also handled international assignments in internal and oper
Slide 8: About Balaji Telefilms Limited
About Balaji Telefilms Limited • A leading entertainment house in India since 1994 • Demonstrated ability to create high quality content • Executed over 15,000 hours of television content in Hindi, Tamil, Telugu, Kannada, Malayalam and Bengali entertainment across genres • Owning 19 modern studios a
Slide 9: About Balaji Telefilms Ltd. (cont'd)
About Balaji Telefilms Ltd. (cont’d) • Television and Film has been the foundation stone of Balaji Telefilms Limited (BTL) • Rich experience in entertainment and a proven ability in gauging the pulse of masses • Past track record has been exemplary with a string of hit shows in Hindi and Regional te
Slide 10: Key Shareholding
Key Shareholding Shareholding (as on 30th September 2015) Particulars Number of Shares % of Total Holding Promoter 3,08,35,938 47.29% Group CEO 6,92,729 1.06% Institutional 45,81,408 7.01% Corporate Bodies 115,39,418 17.70% Public & Others 1,75,60,950 26.93% Private and Confidential Unique, Distinct
Slide 11: Growth: Three-pronged Strategy
Unique, Distinctive, Disruptive Growth: Three-pronged Strategy
Slide 12: A Three-pronged Strategy to Become a Diversified Media Major in India
A Three-pronged Strategy to Become a Diversified Media Major in India Digital B2C OWN Platform SVOD + AVOD Original & Curated Content Movies Young, edgy, disruptive, premium Pipeline & Slate Multiple Genres & languages Risk Averse Share of Mobile & Online Video Co-prods Market TV P
Slide 13: Television Production
Unique, Distinctive, Disruptive Television Production
Slide 14: Key Business Drivers - Television
Key Business Drivers - Television • Commissioned programming is the key revenue driver for the television division • Improving realisation in Commissioned programming • Television revenues expected to expand owing to demand from satellite channels for our premium television serials • Kum Kum Bhagaya
Slide 15: 4 out of 5 existing daily soaps as slot leaders
4 out of 5 existing daily soaps as slot leaders Shows Channel Time Ratings* Ratings of shows in parallel slots Star Plus Sony Zee Life Ok Colors Pavitra Bandhan Do Dilo Ka DD 20.30 - 21.00 15.6 - - - - - Kumkum Bhagya Zee 21.00 - 21.30 3.8 2.6 0.2 - 0.8 2.1 Ye Hai Mohabbatein Star Plus 19.30 - 20.00
Slide 16: BTL's Contribution in the GRP's of Leading GECs
BTL's Contribution in the GRP's of Leading GECs Star Plus Zee TV Colors 20% 14% 24% • A leading contributor to the GRP’s of top GECs * BARC ratings for the week 45 (7th-13th Nov 2015) 15 Unique, Distinctive, Disruptive Private and Confidential
Slide 17: Share of Different Broadcasters – H1 FY16 & FY15
Share of Different Broadcasters – H1 FY16 & FY15 Revenue Share in H1 FY16 Revenue Share in FY15 10% 0 13% 5% 9% 4% 7% 14% 19% 12% 35% 28% 44% Sony Star Plus Zee Colors Life Ok Sony Pal DD Sony Star Zee Viacom Life Ok Sony Pal DD Star network replaced Zee Network as the major contributor due to Nac
Slide 18: Key Operating Highlights
Key Operating Highlights • Successfully launched four shows on various GEC’s − Pyaar Ko Ho Jaane Do on Sony from Monday to Friday – October 20, 2015 − Kuch Toh Hai Tere Mere Darmiyaan on Star Plus from Monday to Saturday – September 28, 2015 − Yeh Kahan Aa Gaye Hum on &TV from Monday to Friday – Oct
Slide 19: Other businesses
Other businesses Chhayabani Balaji Entertainment Private Limited • A 50:50 partnership with Chhayabani Entertainment to make shows in the Bengla market • The future pipeline includes following shows – Star Jalsa • Music realty show of 1 hour on Sunday, to be telecast from 2nd week of March’2016 • Da
Slide 20: Other businesses
Other businesses Event Media LLP • A limited liability partnership between BTL and Select Media Holdings in which BTL owns 51% • The company is focused on developing both televised as well as ticketing events with IP ownership • In past, the company has produced Box Office Awards and Mother’s Day Sp
Slide 21: BTL Shows – Daily Soaps
BTL Shows – Daily Soaps 8 year run 8 year run completed over completed over 1,600 episodes 1,800 episodes 7 year run completed over 1,700 episodes 3 year run completed over 740 episodes 4 year run completed over 750 episodes 20 Unique, Distinctive, Disruptive Private and Confidential
Slide 22: BTL Shows – Daily Soaps (cont'd)
BTL Shows – Daily Soaps (cont'd) 3 year run completed over 700 episodes 4 year run completed over 1,000 episodes 3 year run completed over 600 episodes 2 year run 2 year run completed over 400 completed over 200 episodes episodes 5 year run completed over 1,400 episodes 21 Unique, Distinctive, Disru
Slide 23: BTL Shows – Other Genres
BTL Shows – Other Genres 5 year run most acclaimed serial 22 Unique, Distinctive, Disruptive Private and Confidential
Slide 24: BTL Shows - Regional
BTL Shows - Regional Regional: Kannada Regional: Tamil No. of yrs: 12 yrs No. of yrs: 9 yrs No. of Shows: 14 No. of Shows: 7 No. of Episodes: 5,832 No. of Episodes: 3,309 Regional: Telugu Regional: Malyalam No. of yrs: 14 yrs No. of yrs: 5 yrs No. of Shows: 17 No. of Shows: 5 No. of Episodes: 5,619
Slide 25: Movies
Unique, Distinctive, Disruptive Movies
Slide 26: Key Business Drivers - Movies
Key Business Drivers - Movies • Rapidly expanding number of multiplexes resulting in growth opportunities and better reach • Company’s theatrical performance improved owing to strong content driven by increasing number of multiplex theatres with rising average ticket prices • Audiences acceptance fo
Slide 27: Movie strategy: partnerships, distribution and satellite syndication
Business Essential • Strong • Exploring best • Building a • Theatrical • Co- Robust Movie Slate Satellite Syndication Strategic Partnerships Forward and Backward Integration Distribution and Marketing content possible deals strong movie rights sold production creativity for cable & pipeline closer t
Slide 28: Movies Pipeline
Movies Pipeline ‘Great Grand Masti’ last leg of shooting underway – expected release Q4 FY16 ‘Kya Kool Hai Hum 3’ and ‘XXX’ in post production stage - expected release Q4 FY16 ‘Udta Punjab’ in post production stage - expected release Q1 FY17 ‘Azhar’ a biopic, shooting in progress – expected
Slide 29: Our IPRs
Our IPRs 28 Unique, Distinctive, Disruptive Private and Confidential
Slide 30: Our IPRs (cont'd)
Our IPRs (cont’d) 29 Unique, Distinctive, Disruptive Private and Confidential
Slide 31: Our IPRs (cont'd)
Our IPRs (cont’d) 30 Unique, Distinctive, Disruptive Private and Confidential
Slide 32: Amortisation Policy on Inventory
Amortisation Policy on Inventory • Items of inventory are carried at lower of cost and net realizable value. Cost is determined on following basis: − Films: Actual Cost − Unamortised cost of films: The cost of films is amortised in the ratio of current revenue to expected total revenue. At the end o
Slide 33: ALT Digital - Digital B2C
Unique, Distinctive, Disruptive ALT Digital - Digital B2C
Slide 34: Supported by a Team with Strong Pedigree
Supported by a Team with Strong Pedigree • An IIM Ahmedabad Alumnus with 20+ years of experience in Media & Entertainment • Before joining ALT, he was serving as Business head of Sony Entertainment Television Nachiket Pantvaidya • Nachiket has also served at the leadership positions in other organiz
Slide 35: Key Business Drivers - Digital
Key Business Drivers - Digital • 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 in the fu
Slide 36: Building a Digital B2C Business as a Critical Element of the Strategy
Building a Digital B2C Business Emerged as a Critical Element of the Strategy to Achieve the Goal Films Television SCALE moderately and become PROFITABLE Digital KEEP THE LIGHTS ON, foray into REGIONAL and NON-FICTION make selective RISK-REWARD plays GOAL 5 YEARS Build a Digital B2C business through
Slide 37: Business Model
Business Model Private and Confidential Unique, Distinctive, Disruptive
Slide 38: Our Business Model Involves Launching a Digital Brand 'ALT Digital'
Our Business Model Involves Launching a Digital Brand ‘ALT Digital’ Backed by Original Content D2C Using a Subscription Model Content strategy Edgy, large variety and volume of original content created especially for the OTT platform. It will have aggregated content as well which is never seen-befor
Slide 39: The Digital Value Chain Allows Us to Go Direct to Consumer
The Digital Value Chain Allows Us to Go Direct to Consumer 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 chai
Slide 40: The Content will be Delivered D2C on Smartphones, Tablets and Other Screens
The Content will be Delivered D2C on Smartphones, Tablets and Other Screens 39 Unique, Distinctive, Disruptive Private and Confidential
Slide 41: Opportunity Canvas
Opportunity Canvas Private and Confidential Unique, Distinctive, Disruptive
Slide 42: Online Video Consumption is Growing Rapidly
Online Video Consumption is Growing Rapidly Online video viewership in India on PC, unique users Online video views in India on PC (Monthly Average) (monthly average) # million # billion 70 23% 31% 4.50 59 4.10 60 54 4.00 3.71 50 3.50 3.10 42 3.00 40 32 2.50 30 2.00 1.86 20 1.50 1.00 10 0.50 - - 201
Slide 43: Further Driven by Growth in Broadband Internet
Further Driven by Growth in Broadband Internet, Led by Growing Smartphone Numbers Broadband connections in India # million 38% 700 600 600 500 434 400 314 300 227 200 164 119 86 100 55 - 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E Source: TRAI, Ericson study 42 Unique, Distinctive, Disruptive Priv
Slide 44: 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 45: Who is Already Accessing Various Services on Mobile Internet
...Who is Already Accessing Various Services on Mobile Internet… Video viewing on PCs has almost doubled in 3 years Online video landscape Unique viewers (mn per month) Video audience (hours/month/viewer) 59 24 59 mn viewers 54 17 15 42 3.7 bn videos 11 7 32 7 hrs of content Mar 2011 Mar 2014 India
Slide 46: ….and Paying for it
….and Paying for it Internet users are becoming increasingly comfortable transacting online Online shoppers (mn) Average annual spending on online Mobile Wallet Potential (mn users) 65 purchases (INR) 100 PayTM went from 0 to 50 million 40 users in 15 months 50 6,000 2x 10,000 0 2014 2015 2014 2015
Slide 47: Our Offerings
Our Offerings Private and Confidential Unique, Distinctive, Disruptive
Slide 48: Our Plans are Built Around the Emerging Changes in Viewing Habits
Our Plans are Built Around the Emerging Changes in the Viewing Habits of Consumers • The audience is moving towards non traditional media like mobile and other connected devices • This audience is willing to consume and pay for online services • However, they are hungry for quality original content
Slide 49: To Ride the Next Level of Growth
To Ride the Next Level of Growth • ALT is being built on a key emerging and rapidly accelerating trend – the young, urban audience is looking for entertainment content outside TV to watch at their convenience • A small and growing segment of this audience is willing to pay for such content • Broadba
Slide 50: Launch plan - On Track to Launch by Q1FY17
Launch plan - On Track to Launch by Q1FY17 Q1 FY17 Launch of ALT APP, Website Q3-Q4 FY16 Launch Marketing - Tech Development - Content Production - Promo Launch - Beta Launch - Pre-Launch Marketing Q2 FY16 - Announcement of ALT Digital - Team Set-up - Tech Development - Content pre-production 49 Uni
Slide 51: Group Financials
Unique, Distinctive, Disruptive Group Financials
Slide 52: Standalone Financials | Income statement
Standalone Financials | Income statement INR Mn FY11 FY12 FY13 FY14 FY15 (H1)FY16 Revenue from operations 1,505 1,181 1,350 1,292 2,058 1,196 Other operating revenue - 112 58 23 39 30 Total Revenue 1,505 1,294 1,409 1,315 2,097 1.226 Growth% 34%1 Cost of production of television serials 1,091 866 1,
Slide 53: Standalone Financials | Balance Sheet
Standalone Financials | Balance Sheet INR Mn FY11 FY12 FY13 FY14 FY15 (H1)FY16 Equity and liabilities Shareholders' funds 3,969 4,070 4,172 4,242 4,300 4,448 Share Capital 130 130 130 130 130 130 Reserves and surplus 3,838 3,939 4,042 4,112 4,169 4,318 Current Liabilities 266 282 261 282 399 502 Tra
Slide 54: Standalone Financials | Cash Flow
Standalone Financials | Cash Flow INR Mn FY11 FY12 FY13 FY14 FY15 (H1)FY16 Cash flow from operating activities Profit/ (loss) for the year (44) 107 166 160 151 202 Adjustments (45) (185) (84) (40) 35 (56) Operating profit/(loss) before working capital changes (89) (78) 82 121 186 147 Working capital
Slide 55: Group Financials | Income statement
Group Financials | Income statement INR Mn FY11 FY12 FY13 FY14 FY15 (H1)FY16 Total Revenue 1,922 1,878 1,860 4,075 3,465 1,309 Growth% (2%) (1%) 119% (15%) (34%)1 Cost of production 1,355 1,165 1,302 3,851 2,965 969 Gross Margin 567 713 558 224 500 340 Gross Margin% 29% 38% 30% 5% 14% 26% Employee b
Slide 56: Group Financials | Balance Sheet
Group Financials | Balance Sheet INR Mn FY11 FY12 FY13 FY14 FY15 (H1)FY16 Equity and liabilities Shareholders' funds 3,725 3,914 4,029 3,827 3,818 3,916 Share Capital 130 130 130 130 130 130 Reserves and surplus 3,594 3,784 3,899 3,696 3,687 3,781 Current Liabilities 280 334 462 520 478 642 Trade pa
Slide 57: Group Financials | Cash Flow
Group Financials | Cash Flow INR Mn FY11 FY12 FY13 FY14 FY15 (H1)FY16 Cash flow from operating activities Profit/ (loss) for the year (15) 195 183 (112) 85 148 Adjustments (42) (183) (83) (35) 56 (53) Operating profit/(loss) before working capital changes (57) 12 100 (147) 141 95 Working capital adj
Slide 58: Thank You
Unique, Distinctive, Disruptive Thank You
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