February 2016 Jefferies Media and Communications Conference Jyoti Deshpande
Content is King New film mix 65-70 films each year Co-production Acquisition Trinity Pictures Hindi Regional language International agreements Digital premiere window 3,000+ film library (1 year after Theatrical Release) PAGE 1
Leading Box Office Market Share Blockbuster film slate Eros films account for 7 out of top 15 films in 2015 No.1 No.3 No.4 No.9 No.11 No.12 No.15 Market Share CY 2011-2015 4% 6% 10% 14% 2% 1% 40% Eros International/Ayngaran UTV Motion Pictures Yash Raj Films Reliance Big Entertainment PVT. Ltd. Fox International Viva Ent B4U Network 3 or 4 out of Top 10 Indian Box office films are Eros films every year Last 5 years aggregate market share of 40% Note Eros leading position but also fragmentation of rest of the market 23% Tip Top Entertainment (1) Represents market share of all theatrically released Indian language films. PAGE 2
FY 16 and FY 17 Release Profile Film Name Language Star Cast/(Director/Producer) Tentative Release Dictator Telugu Balakrishna (Srivaas) Released in Q4 FY16 Rajini Murugan Tamil Sivakarthikeyan (Ponram) Released in Q4 FY16 Sardaar Gabbar Singh Telugu Pawan Kalyan (K.S. Ravindra) Q1 FY 17 24 Tamil Suriya, Samantha (Vikram Kumar) Q1 FY 17 Ki &Ka Hindi Arjun Kapoor, Kareena Kapoor (R. Balki) Q1 FY 17 Housefull 3 Hindi Akshay Kumar, Abhishek Bachchan (Sajid Farhad / Sajid Nadiadwala) Q1 FY 17 Dhishoom Hindi Varun Dhawan, John Abraham (Rohit Dhawan) Q2 FY 17 Baar Baar Dekho Hindi Siddharth Malhotra & Katrina Kaif / (Excel / Dharma) Q2 FY17 Chaar Sahibzaade 2 Punjabi 3D Animation (Harry Baweja) Q2 FY17 Manmarziyan Hindi Ayushmann Khuranna & Bhumi Pednekar / (Colour Yellow) Q3 FY17 Shivaay Hindi Ajay Devgn / (Ajay Devgn) Q3 FY17 Rock On 2 Hindi Farhan Akhtar, Arjun Rampal / (Excel) Q3 FY17 Guru Tegh Bahadur Punjabi 3D Animation / (Harry Baweja) Q3 FY17 Singam 3 Tamil Suriya, Anushka Shetty and Shruti Haasan / (Studio Green) Q4 FY17 Chef Hindi Saif Ali Khan / (Alumbra Entertainment) Q4 FY17 Phir Hera Pheri 3 Hindi John Abraham, Abhishek Bachchan, / (Firoz Nadiadwallah / Neeraj Vora) Q4 FY17 (1) High budget films refer to Hindi films with direct production costs in excess of $8.5 million and Tamil as well as Telugu films with direct production costs in excess of $7.0 million; Low budget films refer to both Hindi, Tamil, and Telugu films with less than $1.0 million in direct production costs; Medium budget films refer to Hindi, Tamil, and Telugu films within the remaining range of direct production costs (2) Total films includes regional films and films with overseas rights PAGE 3
International markets China Rest of the world $6.8 Billion Chinese Movie Market 31,627 Total Screens in 2014 42% 2014-2015 growth 8,027 Screens added in 2015 Global demand for Bollywood content, especially in Europe and Southeast Asia Large South Asian Diaspora Arrangement with local distributors across the global to target theatrical, TV and DVD releases Already well established in Germany, Russia, China, Japan, Korea, Taiwan, Indonesia Influential partnerships secured in China Trinity Pictures and China studios collaboration In a first for an Indian studio, 2 films being created and produced by our inhouse studio, Trinity Pictures, are set in India and China, will be co-produced along with a Chinese studio and will be shot in both languages. Partnerships with three major Chinese state-owned film and entertainment companies to promote, co-produce and distribute Sino-Indian films across all platforms in India & China The first will be directed by Kabir Khan with an Indian male lead and Chinese female lead cast. Bajirao Mastani to release in cinemas across China in April 2016. China Film Group Corporation Shanghai Film Group Corporation Fudan University Source: Eros International Press Release PAGE 4
The Big Regional Opportunity Language No. of films released in 2014 Top Grossing Film Worldwide Box Office INR & USD Typical Production Budgets Typical Print & Advertising Hindi 141 PK 735 cr ($115m) $ 12-15m $3.0m Tamil 203 Enthiran 283 cr ($44.2m) $ 10-12m $0.7m Telugu 113 Bahubali 600 cr ($94m) $ 8 10m $0.5m Kannada 118 Aptharakshasa 55 cr ($8.6m) $ 4 5m $0.2m Malayalam 151 Drishyam 75 cr ($11.7m) $ 1.5 2.5m $0.2m Marathi 56 Lai Bhari 40 cr ($6.2m) $ 1 2m $0.2m Bengali 68 Chander Pahar 15 cr ($2.3m) $ 0.5 1m $0.1m Punjabi 41 Chaar Sahebzaade 70 cr ($11m) $ 1.5 2.5m $0.2m Others 101 Over 1,000 films are released in India each year across languages The box office numbers suggest these are not niche films. Contributions are significant Varying Budgets. Low P&A. High Margins and Presales In the context of shortage of theatres, the Regional strategy adds scale, market share and margins without cannibalization PAGE 5
ErosNow: over 37m Registered Users 4,750 films rights 200,000 Audio tracks 13 Indian music labels providing music content Exclusive digital premieres available to all users, including recent super-hits Bajrangi Bhaijaan, Tanu Weds Manu Returns, Prem Ratan Dhan Payo and soon Bajirao Mastani Cool, contemporary and edgy Originals exclusively available on ErosNow to release in FY 17 Unlike other OTT ( over-the-top content ) players, Eros owns much of the content on ErosNow Available on all internet-enabled devices and fully integrated with the top social media outlets globally Expect to reach over 1 MILLION paying subscribers by end of FY 2017 (1) Through integration with TechZone, an Eros International company PAGE 6
Great Content with Compelling Product and Pricing INDIA PRICING MULTI-TIER ErosNow Plus Rs.49 ($0.71) Ad-free Subtitles Access all areas ErosNow Premium Rs.99 ($1.44) Ad-free Subtitles Access all areas Video Progression Multi-screen HD Offline viewing INTERNATIONAL PRICING - SINGLE TIER Monthly Subscription Annual Subscription $7.99 $79.99 PAGE 7
Boosting platform distribution with Telcos LeEco Bharti Airtel ErosNow strategic partner to LeEco Smart phone launch in India Exclusive provider of video-on-demand content at launch ErosNow content fully integrated into LeEco handsets Pre-bundled ErosNow subscription for every handset purchased (ErosNow Plus or Premium) LeEco smart phones received over 800,000 pre-registrations in the first 30 days of launch, through Flipkart (exclusive e- commerce seller) Deal to include ErosNow partnership at Le Eco s SmartTV launch (FY 17) Largest market share of internet subscribers in India Idea Cellular Third largest market share of internet subscribers in India PAGE 8
Important notice and disclaimer These materials contain statements that reflect Eros International PLC s (the Company ) beliefs and expectations about the future that constitute forward looking statements as defined under U.S. federal securities laws. In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms believes, estimates, forecasts, plans, prepares, projects anticipates, expects, intends, may, will or should or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and include, but are not limited to, statements regarding the Company s intentions, beliefs or current expectations concerning, among other things, the Company s results of operations, financial condition, liquidity, prospects, growth, strategies, business development, the markets in which the Company operates, expected changes in the Company s margins, certain cost or expense items as a percentage of the Company s revenues, the Company s relationships with theater operators and industry participants, the Company s ability to source film content, the completion or release of the Company s films and the popularity thereof, the Company s ability to maintain and acquire rights to film content, the Company s dependence on the Indian box office success of its films, the Company s ability to recoup box office revenues, the Company s ability to compete in the Indian film industry, the Company s ability to protect its intellectual property rights and its ability to respond to technological changes, the Company s ability to complete the acquisition of Techzone, the Company s contingent liabilities, general economic and political conditions in India and globally, including fiscal policy and regulatory changes in the Indian film industry and other factors discussed in the Company s public filings. By their nature, forward-looking statements involve known and unknown risk and uncertainty because they relate to future events and circumstances. Forward-looking statements speak only as of the date they are made and are not guarantees of future performance and the actual results of the Company s operations, financial condition and liquidity, and the development of the markets and the industry in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in these materials. The forward-looking statements in this presentation are made only as of the date hereof and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of current or future events or otherwise, except as required by law or applicable rules. In addition, even if the results of operations, financial condition and liquidity, and the development of the markets and the industry in which the Company operates are consistent with the forward-looking statements contained in these materials, those results or developments may not be indicative of results or developments in subsequent periods. A number of factors, many of which are beyond the Company's control, could cause results and developments to differ materially from those expressed or implied by the forward-looking statements. The Company has filed a Registration Statement on Form F-1 with the U.S. Securities and Exchange Commission, which includes (under the caption Risk Factors ) information concerning the factors that could cause the Company s results to differ materially from those contained in the forward-looking statements. You may obtain a copy of this document by visiting EDGAR on the SEC website at www.sec.gov. PAGE 9