Shemaroo Entertainment Ltd. · NSE:SHEMAROO
Shemaroo Entertainment — Investor Presentation (December 2017)
30 slides from Shemaroo Entertainment's investor presentation, December 2017
Slide 1: Shemaroo Entertainment Limited
SHEMAROO ENTERTAINMENT LIMITED
Slide 2: 2
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Slide 3: About Shemaroo
ABOUT SHEMAROO • Founded in 1962 as a book circulating library, today Shemaroo is a leading Indian content power house with a global reach, headquartered out of Mumbai and employs over 500 people • The Company is one of the largest independent content aggregators with a library of more than 3,500 ti
Slide 4: Milestones
MILESTONES 1962-2000 2000-2005 2006-2011 2012-2017 1962 - Started book 2001- Digital Post production 2008 - Started content 2012 – Completed 50 years circulating library in Mumbai started aggregation and distribution for MVAS platforms 2003 – Entered Overseas 2014 – Got listed on BSE and 1987 - Home
Slide 5: Experienced Leadership
EXPERIENCED LEADERSHIP Buddhichand Maroo - Raman Maroo - Atul Maru - Promoter Hiren Gada - Whole Time Jai Maroo - Non Chairman Promoter, MD Joint MD Director & CFO Executive Director He is founder of Shemaroo He has an experience of He has around 37 years of He has approximately 21 Holds a Masters D
Slide 6: Independent Directors
INDEPENDENT DIRECTORS Dr. (CA) Reeta Bharat Gnanesh Gala - Vasanji Mamania - Shashidhar Sinha - Kirit Gala , Independent Shah - Independent Independent Director Independent Director Independent Director Director Director He has around 34 years of She has over 29 years of He has around 55 years of He
Slide 7: Shemaroo's Role in a Movie Lifecycle
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 lower
Slide 8: The Business Model
THE BUSINESS MODEL Complete Ownership Rights In-House Creation Limited Ownership Rights Perpetual Rights – Complete ownership Aggregate Rights - Rights limited by rights for distribution across all either period of usage, platforms, geographies, platforms, and perpetual geography or a combination th
Slide 9: Our Content Library
OUR CONTENT LIBRARY Content Library as of April 30th, 2017: Sr. No. Types of Content Perpetual Titles Aggregated Titles Total Number of Titles 1. Hindi films 443 1,423 1,866 2. Regional Titles 456 984 1,440 3. Special Interest content 49 230 279 TOTAL 948 2,637 3,585 Perpetual Titles Aggregated Titl
Slide 10: Content Selection Criteria
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 level.
Slide 11: Business Partners
BUSINESS PARTNERS Shemaroo is one of the largest organised player in a historically fragmented Media Industry. The company has successfully created a niche business by creating long term trustworthy relationships with not only key movie producers, but also broadcasting channels and other media platf
Slide 12: Key Strengths
KEY STRENGTHS Established Brand Name • Brand in existence for over 50 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 • Most Bollywood service
Slide 13: Industry Overview
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Slide 14: Digital Media Industry
DIGITAL MEDIA INDUSTRY Industry Dynamics Internet Users in India (Mn) Domestic Global 35 32 • The number of Internet users in India has gone from • By 2018, digital media 29 around 7 Mn users in 2001 to 412 Mn in 2016 and is spending is expected to 26 projected to reach 1,004 Mn by 2021 overtake tra
Slide 15: Shemaroo in Digital Media
SHEMAROO IN DIGITAL MEDIA Shemaroo was one of the early Indian media companies to syndicate its library in the high growth digital media platforms, thereby gaining Digital Media Revenue (INR Mn) early mover advantage • The company caters to all types of revenue models like pay per transaction, subsc
Slide 16: YouTube – A Case Study
YOUTUBE – A CASE STUDY Shemaroo’s content on YouTube gets over 350 Mn views a month or YouTube Views Growth more than 10 Mn hits per day. • Shemaroo is among the most viewed channel partners for YouTube in India and has more than 40 channels of its own on YouTube • The company‟s flagship channel „Sh
Slide 17: Television Syndication Industry
TELEVISION SYNDICATION INDUSTRY Industry Dynamics Industry Growth Drivers • Television syndication is the sale of • Implementation of GST to streamline content rights to broadcasters taxation and reduce tax burden on • The Indian television broadcasting the sector due to the availability of segment
Slide 18: Television Industry Highlights
TELEVISION INDUSTRY HIGHLIGHTS Indian Television Industry Indian Television Subscription Indian Television Advertising The Television industry in India stands at an estimated size of INR 588 Bn in Subscription Revenue is expected to Advertising revenue is expected to 2016, a growth of 8.5 % over 201
Slide 19: Shemaroo in Traditional Media
SHEMAROO IN TRADITIONAL MEDIA Traditional Media Includes – Television Syndication, Home Entertainment, Traditional Media Revenue (INR Mn) and Others Television Syndication • Shemaroo has a diverse content library which it syndicates rights to various Satellite Channels, Cable & Terrestrial Networks
Slide 20: Shemaroo in Traditional Media (Contd.)
SHEMAROO IN TRADITIONAL MEDIA (Contd.) 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 las
Slide 21: Strategic Drivers for Growth
STRATEGIC DRIVERS FOR GROWTH Technology Rise of OTT • Increase in the number • Growing availability of of OTT destinations for sub INR 5,000 smart online video watching phones • Surge in the width and Digitisation Broadband • Increased penetration depth of content • Broadcasters will increase of Hyb
Slide 22: Strategic Overview
STRATEGIC OVERVIEW Scaling up the Content Library driven by RoI • Acquiring perpetual rights, as well as, to monetise them over a maximum number of distribution platforms • Acquiring Television broadcast rights and digital Media Rights including Music based rights Enhancing Monetisation of Content L
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Slide 24: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (INR Mn.) FY14 FY15 FY16 FY17 H1-FY18* Revenue from Operations 2,646 3,234 3,751 4,255 2,380 Other Income 13 13 16 30 11 Total Revenue 2,659 3,247 3,767 4,285 2,391 Total Expenses 2,003 2,366 2,675 2,980 1,685 EBITDA 657 881 1,092 1,305 706 EBITDA Margin (%)
Slide 25: H1-FY18 Consolidated Balance Sheet (IndAS)
H1-FY18 CONSOLIDATED BALANCE SHEET (IndAS) Equity and Liabilities (INR Mn.) H1-FY18 Assets (INR Mn.) H1-FY18 Shareholders Fund Non Current Assets Share Capital 272 Fixed Assets Other Equity 4,394 Tangible Assets 334 Total Equity 4,666 Intangible assets 11 Non Current Investments 155 Non Current Liab
Slide 26: Historical Consolidated Balance Sheet (iGAAP)
HISTORICAL CONSOLIDATED BALANCE SHEET (iGAAP) Equity and Liabilities (INR Mn.) FY14 FY15 FY16 FY17 Assets (INR Mn.) FY14 FY15 FY16 FY17 Non Current Fixed Assets Shareholders Fund Fixed Assets Share Capital 199 272 272 272 Tangible Assets 332 287 285 337 Reserves and Surplus 1,546 2,902 3,377 3,994 I
Slide 27: Historical Consolidated Financial Charts
HISTORICAL CONSOLIDATED FINANCIAL CHARTS Total Income (INR Mn) EBITDA (INR Mn) and EBITDA Margin (%) 5 Year CAGR 18.03 % 1,600 5 Year CAGR 20.93% 35.0% 30.0% 30.5% 27.6% 27.2% 24.8% 27.2% 30.0% 4,285 1,200 1,305 25.0% 3,767 1,092 20.0% 3,247 800 2,654 882 15.0% 2,161 657 587 10.0% 1,871 400 516 5.0%
Slide 28: Capital Market
CAPITAL MARKET 40.0% Shemaroo BSE Sensex 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Price Data (As of 30th September, 2017) INR Shareholding Pattern as on 30th September 2017 Face Value 10 Market Price 356.1 Others, DII, 0
Slide 29: Rights Accounting Policy – Charge to P&L
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 Digita
Slide 30: Disclaimer
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 all
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