Eros: A Multi-Platform Model

Transcription

1 Eros: A Multi-Platform Model l Leading player in a growing and underpenetrated cinema market Eros has had an average 3 out of top 10 India Box Office hits for the past five years Film pre-sales facilitated by long-standing Eros brand, reputation and industry relationships l Cable digitisation and rising Pay TV penetration drive market growth and demand for premium content Eros film library of over 2,300 films is a stable source of revenue growth with high margins l India is projected to have over 1 billion internet users in the next 15 years ErosNow is the leading Indian digital content platform with global reach Exclusive content provides high barrier to entry We are strategically positioned as a leader in our segments and able to monetise through multiple channels globally $ Theatrical TV Syndication Freemium Pay Per View Subscription Advertising Bundled Services PAGE 1

2 Leading Theatrical Market Share Participation in Average 3 of the Top 10 Releases in India Each Year(1) $23.3m $25.7m $16.5m $24.5m $8.8m Leading Market Share in United States(2) Others 16% $19.3m Reliance 12% YRF 14% $14.5m $20.4m Eros 32% Fox 4% $19.8m UTV 22% Leading Market Share in United Kingdom(2) Other 15% $17.4m $ 32.2m $19.9m Fox 5% Eros 35% Reliance 11% $22.8m $ 18.5m $15.8m YRF 14% UTV 20% (1) Includes films only distributed internationally by Eros. 3 of the Top 10 grossing Hindi films in CY 10 (Source: BoxOfficeIndia.com); 4 of the Top 10 Hindi films in CY 11 (Source: BoxOfficeIndia.com); 2 of the Top 10 Hindi films in CY 12 (Source: bollywoodhungama.com); 4 out of top 10 Hindi releases in CY 13 (Source: bollywoodhungama.com); 3 out of top 10 Hindi releases in CY 14 (Source: bollywoodhungama.com). Rupees converted to USD at average annual exchange rate. (2) Represents market share of all theatrically released Indian language films (Source: Rentrak) PAGE 2

3 Our Diversified Revenue Streams Description Revenue Performance l Leading market share of Indian language films in India, UK and US l Broad, well-established global distribution network $ CAGR: 16.2% 1 Theatrical l Film releases in 50 countries and 25 languages l Portfolio approach by film, budget, genre and language $50 l Regional language films are a key focus area FY10 FY15 2 Television l License film content to content aggregators to reach Cable and Pay TV subscribers l Long-term value in TV syndication from ongoing bundling of library content with new film releases $53 $ CAGR: 11.4% FY10 FY15 3 Digital l ErosNow has over 19m registered users l Music sales from new release film soundtracks and our library catalogue l SVOD and VOD offerings in international markets (US, UK, Asia, etc) CAGR: 4.1% $47 $60 l High growth as digitization of media increases across all platforms FY10 FY15 Source: Website, company information and equity research PAGE 3

4 Diversified, Strong Revenue Growth Strong Historical Revenue Growth Revenue Mix by Channel ($ in millions) $113 FY 07 FY 15 CAGR: 17.6% $156 $150 $165 $207 $215 $236 $284 Theatrical 43% Digital & Ancillary 21% $66 Television 36% FY' 07 FY' 08 FY' 09 FY' 10 FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 Solid Track Record of Profitability Revenue Mix by Geography ($ in millions) $48 FY 07 FY 15 CAGR: 13.2% $67 $60 $54 $54 $56 $80 $101 Rest of the World, 42% $33 North America, 7% India, 39% FY' 07 FY' 08 FY' 09 FY' 10 FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 Europe, 12% PAGE 4

5 2 Our markets

6 Media & Entertainment Markets ($ in billions) Indian Media & Entertainment Market Projected to Grow at 14% (1) CAGR CAGR: 13.9% $28 $25 $6 $21 $5 $3 $19 $5 $3 $16 $4 $3 $6 $3 $3 $6 $3 $2 $5 $2 $5 $4 $5 $8 $9 $10 $12 $14 $16 $ % 10.0% 8.0% 15.5% 2014A 2015E 2016E 2017E 2018E 2019E Television Print Film Other (2) Influential partnerships secured in China $4.8 Billion Chinese Movie Market 34% growth 23,600 Total Screens in Films produced in 2014 China Film Group Corporation Shanghai Film Group Corporation Fudan University (1) Source: FICCI-KPMG Report Rupees converted to USD at (2) Other includes radio, music, out of home, animation & VFX, gaming and digital advertising segments PAGE 6

7 Rapid Growth for India s Film Industry Theatres seeing consistent YoY revenue growth (1) with multiplex rollout fuelling growth (2) ($ in billions) Indian Domestic Theatrical Revenue (in thousands) Multiplexes in India CAGR: 9.2% CAGR: 8.9% E 2016E 2017E 2018E 2019E E 2015E 2016E 2017E 2018E in a highly underpenetrated market (3) Theatre screens per million population 125 with substantial room to increase pricing (4) ($ in USD) Average Admissions Price India Germany UK France US 0.7 India China Brazil Russia US UK Japan (1) FICCI-KPMG Report 2015; Rupees converted to USD at (2) CRISIL Research (3) FICCI frames 2014 (4) Magna Global, June 2014 PAGE 7

8 Compelling Digital Opportunity Internet penetration is still in early stages (1) 90% 87% (in millions) Strong mobile internet user growth (1) Mobile Internet Users in India 53% 46% 19% CAGR: 21.4% UK USA Brazil China India 2014E 2015E 2016E 2017E 2018E 2019E India s digital ad market to reach c$2.8bn by 2020 ($ in millions) Online advertising spend $2,767 ($ in millions) Mobile advertising to be largest component 2020 share of online ad spend Mobile, $858 Social Media, $830 $ 452 FY' 14 FY' 20 Display, $208 Online ad spend as % of total ad spend 7% 19% Search, $415 , $42 Video, $415 (1) FICCI KPMG Report 2015, and broker research PAGE 8

9 4 A digital transformation

10 ErosNow: over 19m Registered Users ü A subscription-based on-demand entertainment portal with over 19 million registered users ü Subscribers have access to 10,000+ content offerings including movies, music tracks, music videos, TV episodes and original videos ü Exclusive film premieres available to all users, including recent super-hit Tanu Weds Manu Returns ü Unlike other OTT ( over-the-top content ) players, Eros owns much of the content on ErosNow ü Available on all internet-enabled devices and fully integrated with the top social media outlets globally Tanu Weds Manu Returns Film Studios Music Labels TIMES music TV Networks ErosNow is ideally positioned to capitalise on growing internet penetration and benefits from high barriers to entry (1) Through integration with TechZone, an Eros International company PAGE 10

11 ErosNow: The Promise of Endless Entertainment Movies Music Originals TV Pioneering new content Original long-form content v Original programming under production v Broad range of genres from fantasy and adventure to romance and thriller v Expected launch: FY 16 v Initial ErosNow viewing window followed by wide TV syndication Original short-form content PAGE 11

12 Roadmap for Profitable Growth Scalable content mix New markets driving growth Riding the digital wave Maintain focus on high ROI film projects including franchise films Capitalize on growth in new international markets, e.g. China Pioneer new, original content to target a wide audience Increase regional output to meet rising demand Continue to bundle library with new release product Meet growing Indian domestic demand for quality films as channel proliferation accelerates China co-production opportunities Continue to build-out content offering in film, TV and music to exploit on our platform Reinforcing brand and best-in-class interface PAGE 12

13 Thank you