Shemaroo Entertainment Ltd. · NSE:SHEMAROO
Shemaroo Entertainment — Investor Presentation (January 2016)
32 slides from Shemaroo Entertainment's investor presentation, January 2016
Slide 1: Shemaroo Entertainment Limited Investor Presentation – January 2016
Shemaroo Entertainment Limited Investor Presentation – January 2016
Slide 2: Index
Index Executive Summary Company Overview Business Overview Financial & Strategic Overview
Slide 3: Company Overview
ook | > e © fol = ° O Overview
Slide 4: About Shemaroo
About Shemaroo • Founded in 1962 as a book circulating library, today Total Revenue (INR Mn) Shemaroo is an established integrated media content house 30% 27.6% 27.2% 24.8% 27.1% in India with activities across content acquisition, value 3,000 2,654 3,247 addition to content and content distribution
Slide 5: Milestones
Milestones 2011 onwards 2006 - 2009 2011- Achieved a total of 600 perpetual right titles and converted to 2008 - Commenced Public Limited 2000 - 2005 content aggregation and 2012 – Completed 50 distribution for MVAS years 1962-2000 platforms 2001- Digital Post 2014 – Got listed on production started
Slide 6: Experienced Leadership
Experienced Leadership Buddhichand Maroo, Chairman Co-founder of the group and associated with the Group since 1962, over 50 years of business experience, over 30 years in media & entertainment industry Raman Maroo, Promoter, MD Co-founder of the Group and associated with the Group since 1974 . Over
Slide 7: Independent Directors
Independent Directors Gnanesh Gala, Independent Director Graduated with a B.Com degree from the University of Bombay in 1982. He is the Managing Director of Navneet Education Limited Dr. (CA) Reeta Bharat Shah, Independent Director She has over 27 years of experience in the field of education & admi
Slide 8: 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 monetization • These subsequent cycles of film monetization have been typically growing due to various factors like increasing advertisement spends, digitization etc. • There is a lower
Slide 9: Business Model
Business Model Complete Ownership Limited Ownership In-House Creation Rights Rights Perpetual Rights – Aggregate Rights - Rights Complete ownership rights for limited by either period of distribution across all usage, platforms, geography geographies, platforms, and or a combination thereof perpetua
Slide 10: Types of Rights & Library
Types of Rights & Library Content Library as of June 30th, 2015: Type of Content Total Number of Total Number of Total Number of Perpetual Titles Aggregated Titles Titles Hindi films 366 1336 1702 Regional Titles 373 750 1123 Special Interest content 42 144 186 TOTAL 781 2230 3011 Perpetual Rights A
Slide 11: 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 12: Business Partners
Business Partners Shemaroo is one of the largest organized 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 13: Key Strengths
Key Strengths Established Brand Name Vast, Diverse and Growing Content Library • Brand in existence for 50 years • All Bollywood services that require content would have at least some content provided • The “Shemaroo” brand has high consumer from Shemaroo. recall and media visibility • Content Libra
Slide 14: Business Overview
Business Overview
Slide 15: New Media Industry
New Media Industry Industry Dynamics Domestic: India Internet vs. TV Penetration, 2014 to 2019 • Internet penetration is expected to grow faster than Television penetration and reach 640 mn users by 2019 1000 960 938 • Digital ad spends accounted for 10.5% of the total ad spend of INR 414 bn in 913
Slide 16: New Media
New Media • Shemaroo was one of the first Indian media companies to New Media Revenue (INR Mn.) syndicate its library in the high growth new media platforms, thereby gaining first mover advantage 500 458 • The company caters to all types of revenue models like pay per 373 400 transaction, subscripti
Slide 17: New Media - YouTube
New Media - YouTube • Shemaroo’s content on YouTube gets around 88 million YouTube views growth views a month or around 2.5 to 3.0 million 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 • Crossed 100 mn views
Slide 18: Broadcast Syndication Industry
Broadcast Syndication Industry Industry Dynamics: • Broadcast syndication is the sale of content rights to broadcasters • The Indian television broadcasting segment currently has more than six UTV Movies Star Gold SONY Max genres and Movies as a genre is second in terms of viewership after General E
Slide 19: Television Industry Highlights
Television Industry Highlights • The Indian Television industry is expected to grow from INR 475 bn in 2014 to INR 975 bn in 2019 at a CAGR of about 15.5% • Subscription Revenue is expected to increase from INR 320 bn in 2014 to INR 676 bn in 2019 at a CAGR of 16% • Advertising revenue is expected t
Slide 20: Traditional Media
Traditional Media Traditional Media Includes – Broadcast Syndication, Home Traditional Media Revenue (INR Mn.) Entertainment and Others Broadcast Syndication 3,000 2,861 • Shemaroo has a diverse content library which it syndicates 2,387 2,279 rights to various broadcasting channels. 2,250 1,976 • Th
Slide 21: Traditional Media
Traditional Media Home Entertainment • The Home Entertainment business has helped Shemaroo to garner the legacy of becoming a nationwide well known and accepted brand • Successfully migrated from one content format to another (Video VHS to VCD to DVD to Blu-Ray) • Shemaroo has a product presence of
Slide 22: MINIPLEX – 'Chhota Parda, Bada Premiere'
MINIPLEX – ‘Chhota Parda, Bada Premiere’ • The company has launched a first of its kind movie premiere service named ‘Miniplex’ on Airtel Digital TV & Tata Sky • Miniplex is an ad-Free, subscription-based service which would Premiere one movie every week for the first time on Indian Television • In
Slide 23: Financial & Strategic Overview
Financial & Strategic Overview 23
Slide 24: Consolidated Income Statement
Consolidated Income Statement Particulars (INR Mn.) FY11 FY12 FY13 FY14 FY15 9M FY16 Revenue from Operations 1,582 1,820 2,147 2,646 3,234 2,721 Other Income 20 51 14 8 13 14 Total Revenue 1,602 1,871 2,161 2,654 3,247 2,735 Total Expenses 1,252 1,355 1,574 1,996 2,366 1,979 EBITDA 350 516 587 658 8
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet Equity and Liabilities (INR Mn.) FY14 FY15 H1FY16 Assets (INR Mn.) FY14 FY15 H1FY16 Non Current Fixed Assets Shareholders Fund Fixed Assets Share Capital 199 272 272 Tangible Assets 332 287 292 Reserves and Surplus 1,546 2,902 3,129 Intangible assets 9 8 - Intangible asset
Slide 26: Balance Sheet Item Explanation
Balance Sheet Item Explanation Current Liabilities (INR Mn.) FY15 83% of the Short Term Short Term Borrowings 1,054 Borrowings comes from the Banking System for the Trades payables 165 Working Capital requirements Other Current Liabilities 339 and other facilities Short Term Provisions 77 As evident
Slide 27: Key Financial Highlights
Key Financial Highlights Total Income (INR Mn) EBITDA (INR Mn) and EBITDA Margin 3,247 1,000 27.6% 27.2% 27.1% 30% 24.8% 3,000 2,654 800 881 24% 2,161 2,250 1,871 600 658 18% 587 1,500 400 516 12% 750 200 6% - - 0% FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Net Worth (INR Mn) and RoCE PAT (INR Mn) and
Slide 28: Rights Accounting Policy
Rights Accounting Policy Aggregated Long Term Rights Rights (>10 years) First 5 years Bundled Rights Next 5 years – - 65% of cost Specific Rights (Satellite + 35% of cost amortized amortized in Digital Rights) in year of sale year of sale Digital rights / Satellite, Satellite rights - Satellite righ
Slide 29: Strategic Drivers for Shemaroo
Strategic Drivers for Shemaroo Broadband Technology Digitization Infrastructure • Growing availability of sub • Broadcasters will increase • Rollout of 4G would INR 5,000 smart phones. investment in enhance the consumption • Improved technology to programming, due to of videos. compress, convert, st
Slide 30: Strategic Overview
Strategic Overview Scaling up the Content Library driven by RoI • Acquiring perpetual rights, as well as, to monetize them over a maximum number of distribution platforms • Acquiring Television broadcast rights and New Media Rights including Music based rights Enhancing Monetization of Content Libra
Slide 31: Capital Market
Capital Market 90% 80% 70% 60% 50% 40% SHEMAROO 30% 20% SENSEX 10% 0% Jan-2015 Feb-2015 Mar-2015 Apr-2015 May-2015 Jun-2015 Jul-2015 Aug-2015 Sep-2015 Oct-2015 Nov-2015 Dec-2015 -10% -20% * 1st January 2015 considered as the base date. Price Data (As of 31st Dec, 2015) INR Shareholding Pattern as on
Slide 32: Disclaimer
Disclaimer 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 events not current after the d
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