Slide 1: The Sun never sets in the South!
The Sun never sets in the South ! JUNE 2018 1
Slide 2: Forward-looking statements disclaimer
Some of the statements made in this presentation are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the Directors and Management of Sun TV Network Ltd. (STNL) about its business and the industry and markets in whic
Slide 3: Business segments overview
¡ Television Broadcasting ¡ FM Radio Broadcasting ¡ Movie Distribution/Production ¡ SunRisers – Hyderabad – IPL Franchise ¡ Sun NXT – Online Video Streaming Platform 3
Slide 4: Sun TV Network Limited
Sun TV Network Limited (Satellite Broadcasting, FM Radio, Production, Entertainment) 98.18 % 59.44 % subsidiary subsidiary Kal Radio Ltd (Radio) South Asia FM Ltd (Radio) 18 FM Radio licenses 28 FM Radio licenses Focused on southern cities Focused on Northern, Eastern & Western parts of the country
Slide 5: Channels by state and language
State / Language Andhra Pradesh & Tamil Nadu / Telangana / Karnataka / Kerala / Channels Tamil Kannada Malayalam Telugu General Entertainment Movies News --- Music Kids Comedy High Definition Life --- --- 5
Slide 6: India Overview
India Overview
Slide 7: South Indian states statistics
Tamil Nadu Andhra Pradesh + Telangana Area in Sq. Km (Rank): 130,058 (11) Area in Sq. Km (Rank): 275,045 (4) Population (Rank): 72 mn (7) Population (Rank): 84.6 mn (5) Urbanization%: 48% Urbanization%: 33% GDP in USD (Rank): 149 B (Top 5 states) GDP in USD (Rank): 145 B (Top 5 states) FDI Inflows (
Slide 8: Television Broadcasting in India
Television Broadcasting in India
Slide 9: Pay TV subscribers in India
¡ Pay TV in India witnessing strong growth and is likely to keep growing organically, since it is only at 60% penetration1 ¡ Bucking the stagnant / declining trend in linear pay TV in developed nations 200 No. of subscribers (India) 180 160 140 78 79 44 55 76 120 40 74 Millions 37 34 100 31 26 80 25
Slide 10: TV advertising and distribution market
2017 (India) 2020P (India) v Accounts for ~ 40% of total ad-spends in India driven by Hindi & Regional ad-spends TV Advertising spends v Entertainment genre continues to be the TV Advertising spends largest ad spend driver followed by news and Rs 267 bn Rs 368 bn sports v Emergence of “Targeted adve
Slide 11: Viewership share, ad market and subscription potential
Enviable Viewership Share ¡ South Indian Channels accounted for ~30 -32 % share of total viewership Fast growing Ad market v Addressable ad market pegged at Rs ~60 billion, growing at a fast pace v South Indian Channels enjoy significant share of total ad revenues v Regional TV in the South strongly
Slide 12: Households and channels by state
Tamil Nadu Andhra Pradesh & Telangana Total Households: 18.5 Mn Total Households: 20.9 Mn TV Households (Penetration): (93%) TV Households (Penetration): (81%) Major Active Tamil Channels: 51 Major Active Telugu Channels: 36 GEC: 17 GEC: 4 Movies: 3 Movies: 6 Music: 11 Music: 3 News: 13 News: 13 Oth
Slide 13: Sun TV Network's TV Broadcasting Business: Present
at Sun TV Network’s TV Broadcasting Business: Present
Slide 14: Largest TV Network in South India
¡ Largest TV Network in South India; also the largest regional TV Network in India § Sun TV is the most watched channel in India today1 § Largest in South India by penetration, viewership & ad revenues § Dominant market share in each of the states § Airs assortment of fiction and non-fiction content
Slide 15: Committed to staying ahead of the curve
¡ Committed to staying ahead of the curve § Innovation and leadership ▪ One of the first Regional GE channels in country to adopt HD ▪ Forged early partnerships with OEMs to pre-load Sun TV app on their devices § Segmenting the addressable market, ahead of digitization ▪ Established presence across
Slide 16: Advertising Revenue
¡ Advertising Revenue Ad market size Language (Rs bn) § TV remains the medium of choice for Tamil 20.0 large advertisers in India Telugu 11.0 Kannada 8.0 § Increasing trends of higher ad spends in the South, driven by high per-capita Malayalam 6.0 income in South India Total 45.0 § Leading to consis
Slide 17: Over 60% share of subscription revenue from South India
C&S Digital Analog Over 60% share of Subscription revenue from South India Language households cable DTH (mn) (mn) (mn) (mn) accrues to Sun TV Network TamilNadu 18.44 4.17 4.95 9.32 Andhra Pradesh & 18.02 11.02 4.69 2.31 v DTH penetration is increasing at rapid pace Telangana Karnataka 11.38 6.25 4.
Slide 18: Paid subscriber base in overseas markets
Paid subscriber base of over ~0.4 mn in overseas markets Rogers Cable ,Bell & Sun TV Network Europe Sun TV Network Europe Limited, Yupp TV Echostar –Dish, , IPTV, Yupp TV, UAE – Gulf Vision Media, Google Myanmar – Shwe DTH & Yupp Ireland Than win Media TV North Africa – Yupp TV Malaysia -Measat Sri
Slide 19: Sun TV Network's TV Broadcasting Business: Future
at Sun TV Network’s TV Broadcasting Business: Future
Slide 20: Digitization and growth in Pay TV ARPUs
¡ In mature South Indian Markets, twin opportunities: Digitization + Growth in Pay TV ARPUs § Digitization will grow the addressable TV audience, improving subscription revenue realization § India’s Pay TV ARPU among lowest in the world; Increase in ARPUs will further reduce dependence on advertisin
Slide 21: FM Radio Broadcasting
F M Radio Broadcasting
Slide 22: FM radio subsidiaries and stations
¡ Subsidiary and Associate Companies § Kal Radio Limited and South Asia FM Limited ¡ 55 stations operational § 7 stations under Brand Suryan FM in Tamil Nadu § 49 stations under Brand Red FM in the Rest of India ¡ 14 more licenses in Phase III and work in progress ¡ Strong Revenues from the Metro st
Slide 23: FM radio locations map
Jammu Amritsar Chandigarh Jodhpur Patna Surat 23
Slide 24: FM radio stations by region
Tamil Nadu, Andhra Karnataka & Pradesh & Telangana West - 12 North & East - 21 Kerala - 9 - 13 • Bangalore • Ahmedabad • Allahabad • Chennai • Asansol • Cochin • Aurangabad • Coimbatore • Bhopal • Gulbarga • Jaipur • Hyderabad • Bhubaneswar • Kannur • Jodhpur • Madurai • Delhi • Kozhikode • Nagpur •
Slide 25: Phase III new FM licenses
q Sun TV Network Ltd - Chennai – 2nd frequency q Kal Radio Limited - Salem, Erode, Vellore, Hyderabad 2nd Frequency, Hubli-Dharwad, Nellore. q South Asia FM Limited - Jhansi, Muzzafarpur, Dhule, Nanded, Leh, Agartala, Dehradun q Digital Radio Delhi Broadcasting Ltd - Srinagar 25
Slide 26: Radio share of ad market and Phase III growth
¡ Increasing share of Radio in total ad pie § Current share of Radio in total ad pie at ~ 4.5% compared to global average of ~8% ¡ Cost effective medium § SMEs and local advertisers to drive growth ¡ Share of regional advertisers to increase § Share to increase from current ~ 40% to global average o
Slide 27: Leadership across TV, radio, movies and IPL
¡ TV Broadcasting § India’s No 1 TV Broadcaster ¡ F M Radio Broadcasting § India’s largest private FM player ¡ Movie Distribution / Production § One of India’s largest Corporate Movie Distribution / Production houses ¡ SunRisers – Hyderabad – IPL Franchise § An opportunity to blend the India’s most
Slide 28: Financials
FINANCIALS
Slide 29: Financial summary (Rs Crores)
(Rs Crores) Financial Year 2017- 18 2016-17 2015 - 16 2014 - 15 2013 – 14 2012 – 13 Particulars Advertising Revenue 1,309.33 1,172.10 1,210.71 1,136.09 1,067.04 1,049.67 Telecast Fees 85.79 99.54 110.03 114.64 127.34 143.61 Subscription 1,308.57 1,115.88 958.84 875.72 769.45 615.10 (Analogue + DTH +
Slide 30: Revenues, EBITDA, PAT, ROCE and RONW
EBITDA (Rs. bn) Total Revenues (Rs bn) 81 (%) 25.0 80 81 35.0 28.62 20.0 30.0 21.0 25.58 76 25.0 22.4 24.0 15.0 15.6 76 19.2 18.2 20.0 17.6 72 10.0 14.0 71 15.0 13.8 70 71 14.6 68 10.0 5.0 16.1 68 19.6 5.0 17.4 0.0 17.1 66 0.0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY11 FY12 FY13 FY14 FY15 FY16 FY1
Slide 31: Consolidated financial summary
Financial Year 2017 - 18 2016 - 17 2015 - 16 2014 - 15 2013 – 14 2012 – 13 Particulars Advertising Revenue 1,411.90 1,261.57 1,380.51 1,289.35 1,194.38 1,155.46 Telecast Fees 85.79 99.54 110.03 114.64 127.34 143.61 Subscription 1,308.57 1,115.88 958.84 875.72 769.45 615.10 (Analogue + DTH + Overseas
Slide 32: Consolidated revenues, EBITDA, PAT, ROCE and RONW
EBITDA (Rs. bn) Total Revenues (Rs bn) (%) 25.0 81 35.0 78 20.0 77 30.0 29.6 25.0 15.0 20.0 76 25.7 26.5 15.8 73 20.0 24.0 20.1 19.2 22.2 10.0 14.1 70 15.0 18.5 14.0 71 68 69 10.0 5.0 15.1 17.7 17.767 68 5.0 0.0 66 16.8 0.0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY11 FY12 FY13 FY14 FY15 FY16 FY17 F
Slide 33: Total income, advertising income and PAT growth
Total Income grew at CAGR of 10.65 % Advertising Income grew at CAGR of 8.62% 1400.0 1309.3 (Rs. Crs) 3500.0 1210.7 1172.1 (Rs. Crs) 3002.1 (Rs. Crs) 1136.1 3000.0 2703.8 1200.0 1049.7 1067.0 2511.3 970.2 945.4 2331.5 2500.0 2176.0 1000.0 1970.5 788.7 1831.6 1872.6 2000.0 800.0 1437.5 572.8 1500.0 1
Slide 34: PAT and dividend payout
Rs. Crs 1200 PAT Dividend 1093.04 979.41 1000 867.2 772.2 85% 800 737.2 735.2 716.9 694.7 683.3 48% 72% 43% 600 567.4 529.3 63% 64% 61% 474.31 474.32 437.1 52% 435.1 435.7 438.0 61% 401.5 400 344.9 26% 26% 200 115.3 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Dividend Payout = Dividend + Div
Slide 35: June 2018
JUNE 2018 35