Shemaroo Entertainment Ltd. · NSE:SHEMAROO
Shemaroo Entertainment — Investor Presentation (March 2019)
40 slides from Shemaroo Entertainment's investor presentation, Mar 19, 2019
Slide 1: NSE filing cover letter for Investor Presentation
Ref No.: SEL / Reg. 30 - LODR /Mar-2019 / 01 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 19, 2019 The Secretary, BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai - 400 02
Slide 2: Investor Presentation January 2019
1 Investor Presentation Shemaroo Entertainment Limited JANUARY 2019
Slide 3: About Shemaroo
2 ABOUT SHEMAROO
Slide 4: At a Glance
3 At a Glance Over 55 years experience as a Household One of the largest content houses with Offering content to most Bollywood services Media Brand 3700+ content library across leading platforms Offering content across Bollywood, Strong understanding of Consumer's Strong content offerings in multip
Slide 5: Overview
4 Overview • Founded in 1962 as a book circulating library, today Shemaroo Entertainment Limited (Shemaroo) is a leading Indian content power house with a global reach, headquartered out of Mumbai and employs over 750 people. • Shemaroo is a pioneer in content aggregation and distribution in India a
Slide 6: Key Milestones
5 Key Milestones Commenced Evolved into a distributing content Entered Limca Home Video Digital Post content house over digital Media Book of Records for Distribution production by acquiring platforms like Completed a digital campaign started started perpetual rights YouTube 50 years on Twitter 1962
Slide 7: Awards & Accolades
6 Awards & Accolades Abby – Gold – Best Use Adgully Digixx 2018 – YouTube Diamond play Of Social Media Video – Media Brand button for YouTube (2017-18) channel Filmi Gaane Antakshari Kuch Kisse Kuch Kahaniyan Shemaroo Filmi Gaane Gold At The PromaxBDA India IAMAI Awards, CMO Asia Licensor of The Yea
Slide 8: Experienced Leadership
7 Experienced Leadership Buddhichand Maroo - Chairman - He is founder of Shemaroo Entertainment Limited and has been associated with the company since 1962. He started the business with a book library in 1962 and gradually transformed it into a well-diversified corporate in the Media and Entertainme
Slide 9: Our Independent Board
8 Our Independent Board Gnanesh Gala - Independent Director - He has around 35 years of experience in the Educational Publishing Industry. He was the President (Finance) of Navneet Publications (India) Limited for more than 21 years and presently the Managing Director of the said company. Dr. (CA) R
Slide 10: Key Strengths
9 Key Strengths Established Brand Name • Brand in existence for over 55 years • The “Shemaroo” brand has high consumer recall and media visibility Diversified Distribution Platforms Vast, Diverse and Growing Content Library • Presence across television, digital media and other media • Most Bollywood
Slide 11: Business Model
10 BUSINESS MODEL
Slide 12: Shemaroo's Role In A Movie Lifecycle
11 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, digitisation etc. • There is a lo
Slide 13: The Business Model
12 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 periods com
Slide 14: Our Content Library
13 Our Content Library Content Library as on May 15th, 2018: Sr. Perpetual Aggregated Total Number Types of Content No. Titles Titles of Titles 1. Hindi films 471 1,454 1,925 2. Regional Titles 511 1,017 1,528 Special Interest 3. 55 243 298 content TOTAL 1,037 2,714 3,751
Slide 15: Content Selection Criteria
14 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 16: Shemaroo's Role In The Value Chain
15 Shemaroo’s Role In The Value Chain Fragmented Production Houses One of the largest Content Houses Monetisation Platforms Creates Value There are many production houses/ Increasing the life of the movie and Requires unbundled and re-bundled content owners in India with smaller creating value for a
Slide 17: Distribution Platforms
> Hy -* DISTRIBUTION PLATFORMS 7
Slide 18: Media & Entertainment Industry
17 Media & Entertainment Industry Media and Entertainment Industry is expected to reach INR 2.66 Tn by FY23 Media and Entertainment Industry growth (INR Bn) 2,660 2,368 2,101 1,862 435 1,634 340 263 229 1,436 214 1,295 203 199 1,182 155 185 1,055 116 172 948 86 159 65 145 47 137 33 127 126 1,067 1,1
Slide 19: Digital Media Industry
18 Digital Media Industry Digital Advertising revenues grew by 35% to reach INR 116.3 Bn in FY18 over FY17. It is expected to grow at a 30.2% CAGR over the period FY18-FY23 to reach INR 435 Bn. Digital Advertisement Spend (INR Bn) 435 Digital Subscriptions (audio and video) grew at 50% in FY17 to re
Slide 20: Digital Potential
19 Digital Potential Rising Internet users (Mn) Increasing share of mobile internet consumption for 829 The digital sector is poised to video in India witness the entrance of first time internet users especially from 2017 2022E 429 smaller towns and rural areas. Rural 481 Internet users are expected
Slide 21: Strengthening Digital Infrastructure
20 Strengthening Digital Infrastructure Following the launch of 4G services by Increase in data consumption expected Reliance Jio in Sep-2016 at disruptive due to cheaper data and handsets. prices, it resulted in commoditisation of voice services with realisations per minute dropping by more than 30
Slide 22: Strategic Drivers for Growth in Digital Media
21 Strategic Drivers for Growth in Digital Media Broadband Technology Rise of OTT Rapid digital adoption Infrastructure • Growing availability • Increase in the in non-metros of sub INR 5,000 smart number of OTT • Increasing reach of destinations for • Next wave of internet video 4G & fall in data p
Slide 23: Shemaroo In Digital Media
22 Shemaroo In Digital Media Digital Media Revenue (INR Mn) Shemaroo was one of the early Indian media companies to syndicate its library 1,305 in the high growth 1,271 digital media platforms, thereby gaining early mover 923 advantage 635 • The company caters to all types of revenue models like sub
Slide 24: YouTube
23 YouTube Shemaroo’s content on YouTube gets over 750 Mn views a month at an average of YouTube Views Growth more than 25 Mn views per day. • Shemaroo is among the most viewed channel partners for YouTube in India and has more than 50 channels of its own on YouTube • The company’s flagship channel
Slide 25: TV Industry Performance and Projection
24 TV Industry Performance and Projection TV Industry Performance (INR Bn) 862 TV Industry grew from INR 594 Bn to INR 660 Bn in 2017, a 734 660 growth of 11.2%. It is expected to reach INR 862 Bn by 594 368 304 2020, at a CAGR of 9.8%. 267 Advertisement revenues contributes to 41% of the 243 in
Slide 26: Television Industry
25 Television Industry Industry Dynamics Under penetrated Rural India (TV) (Mn Homes) • Television syndication is the sale of content rights to broadcasters 99 • The Indian television broadcasting segment currently has more than six genres and Movies as a genre is second in terms of viewership after
Slide 27: Shemaroo in Traditional Media
26 Shemaroo in Traditional Media Traditional Media Includes – Television Syndication, Overseas Distribution and Others Traditional Media Revenue (INR Mn) Television Syndication • Shemaroo has a diverse content library which it syndicates rights to various Satellite Channels, Cable & Terrestrial Netw
Slide 28: Increasing Global Footprints
27 Increasing Global Footprints • Indians form one of the highest diaspora population in the world, who have the willingness to pay for content and yet have limited options for this content • The company caters to a score of audiences in international markets through its relationships with many lead
Slide 29: Other Traditional Media Platforms
28 Other Traditional Media Platforms Home Entertainment • The Home Entertainment business has helped Shemaroo to garner the legacy of becoming a nationwide well known and accepted brand • Has successfully migrated from one content format to another (Video VHS to VCD to DVD to Blu-Ray) Over the last
Slide 30: Our Strategy
29 OUR STRATEGY
Slide 31: Road Ahead
30 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 32: Strategic Overview
31 Strategic Overview Scaling up the Content Library driven by RoI • Acquiring perpetual rights, as well as, to monetise these over a maximum number of distribution platforms • Acquiring Television Broadcast rights and Digital Media Rights Enhancing Monetisation of Content Library through Existing a
Slide 33: Financial Overview
i aa FINANCIAL OVERVIEW 7
Slide 34: Consolidated Income Statement (Ind-As)
33 Consolidated Income Statement (Ind-As) Particulars (INR Mn.) FY14 FY15 FY16 FY17* FY18* 9M-FY19* Revenue from Operations 2,646 3,234 3,751 4,255 4,886 4,357 Other Income 13 13 16 30 17 9 Total Revenue 2,659 3,247 3,767 4,285 4,903 4,366 Total Expenses 2,003 2,366 2,675 2,980 3,465 3,188 EBITDA 65
Slide 35: Consolidated Balance Sheet (Ind-As)
34 Consolidated Balance Sheet (Ind-As) Equity and Liabilities (INR Mn) FY17 FY18 H1-FY19 Assets (INR Mn) FY17 FY18 H1-FY19 Shareholders Fund Non Current Assets Share Capital 272 272 272 Fixed Assets Other Equity 3,992 4,692 5,032 Property, Plant & Equipment 337 323 319 Non controlling interest (32)
Slide 36: Historical Consolidated Financial Charts
35 Historical Consolidated Financial Charts Total Income* (INR Mn) EBITDA (INR Mn) and EBITDA Margin (%) 5 Year CAGR 17.80 % 5 Year CAGR 19.63% 1,600 28.9% 30.5% 29.3% 35.0% 4,903 27.2% 27.1% 24.8% 30.0% 1,438 4,285 1,200 1,305 25.0% 3,767 1,092 20.0% 3,247 800 2,659 881 15.0% 2,161 657 400 587 10.0
Slide 37: Rights Accounting Policy – Charge to P&L
36 RIGHTS ACCOUNTING POLICY – CHARGE TO P&L Aggregated Rights Long Term Rights (<10 years) (>=10 years) Bundled First 5 years - Next 5 years Specific Rights (Satellite + 65% in year – 35% in year Rights of sale of sale Digital Rights) Satellite, Satellite rights Digital rights - Satellite rights Dig
Slide 38: Capital Market
37 Capital Market Shemaroo Sensex 30% 25% 20% 15% 10% 5% 0% -5% -10% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Price Data (As of 31st December, 2018) INR Share Holding Pattern as on 31st December, 2018 Face Value 10 Market Price 421.9 Public 16% 52 Week H/L
Slide 39: Disclaimer
38 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 40: Thank You
THANK YOU
Shemaroo Entertainment — Investor Presentation (March 2019) on 6ix