Content New Media Broadcasting UTV Software Communications Limited April, 2007
UTV India Corporate Overview 2
UTV Industry Veteran 15 years of learning in entertainment industry Blue chip Strategic investors, financial investors and partners Indian player with truly Global operations Truly diversified yet integrated business model Build global business Three focused verticals Content. New Media. Broadcasting One of strongest Creative, marketing, commercial Experienced/ progressive Management and business oriented management teams 18 member top management Excellent grasp of global operations Over 800 strong with varied skill sets and growing Long term Talent relationships with M Night Shyamalan, Talent relationships Mira Nair, Rakeysh Mehra, Vishal Bhardwaj, John Abraham, Chris Rock, Anurag Basu, Will Smith, etc 3
Track record First in Cable TV First in Television content First Mover/ Innovative & growth oriented First in Animation First in Hungama TV - Home grown Kids TV channel First in Hollywood/ cross over movies First integrated model in Gaming in India Strategic Investors like Walt Disney, Newscorp, Investors Astro Financial investors like Warburg Pincus, CDPQ, ILFS, Fidelity, Kotak 4
Enviable relationships Strategic Investor in UTV Hollywood Co-productions/ distribution TV content Console Game Development Broadcasting JV Over 80 Telcos worldwide including Verizon, Vodafone, Airtel, etc 5
Transition - B2B to B2C B2B Television content production Airtime sales Animation production services Dubbing and post production services Limited scalability Low margins Prospects limited to India No IPR retention B2C Highly scalable models Better Margins Broadcaster Movie Studio Producer + Distributor Game development brand on Mobile and Consoles World is the market Top end of the value chain Own IPR in perpetuity 6
Business Top end of value chain Content Studio Model Domestic Productions International Co-production Household brand Home Entertainment, DVD TV Content Sponsored content New Media Game development, publishing and distribution Animation productions Broadcasting 8-12 channels Youth World Cinema + lots more Partnerships across business verticals - 7
Content 8
Growth Strategy right blend Strategy Offering Monetisation Only Studio Model in the country portfolio approach Mix of Hindi, Indian regional, Hollywood and Animation Only player with Hollywood model in the country Unparalleled global relationships Over 30 movies over a period of 3 years Strong and high quality franchises Depth of talent Multiple language and multi genre New Generation of concepts/ directors/ artists Optimum monetisation across all platforms Theatrical, Music, TV, Home Video, Mobile, other New Media International markets high growth more than 50% revenues share by 08-09 Excellent synergies in the group within all three verticals Content. New Media. Broadcasting 9
Growth trends in Cinema content NBOC of Top 50 Hindi Films 250 219 200 2006 Year of Phenomenal Growth 140 NBOC USD Millio 150 100 117 20 18 16 13 14.5 18.1 18.6 14 11.58 50 0 2004 2005 2006 NBOC USD Millio 12 10 8 6 4 2 Average NBOC per film for the year s top 10 releases has shot up by 88% from USD 6.5 million in 2005 to USD 12.1 million in 2006 NBOC of Top 10 Hindi Films 0 Rang De... - Jan-06 Fanaa - May-06 Lage Raho... - Sep-06 Krrish Dhoom 2 - Nov-06 Growth primarily driven by higher ticket prices, improved transparency, improved content and overall corporatisation through multiplexes and digitisation 10
Future trends Growth in multiplexes- estimated around 900 screens by Dec08 Increased conversion of single screens to digital more than 1,000 by Dec07 Increased per ticket realisation $1.0 to $3-4 906 Increasing TV distribution pipelines No of TV Channels showing film content Cable/ DTH/ VOD/ IPTV New Media opportunities Growing demand of mobile content Contributes over 20% to the overall music sales 276 73 506 134 240 100% 80% 60% 40% 20% 0% Others Music TV Home Video Theatrical - Intl 'Mar-05 'Feb-07 'Dec-08 Multiplexes Multiplex Screens 3 years back Now 3 years later Theatrical - India 11
2009 2008 Movie slate Language Movie Name Director/ Producer HINDI Mumbai Mumbai Blue Umbrella Goal Hook Ya Crook Metro Jodha Akbar Game On - Nishikant Kamat - Vishal Bhardwaj - Vivek Agnihotri - David Dhawan - Anurag Basu - Ashutosh Gowariker - Nupur Asthana Repeat / long term talent relationship with top most Actors and Directors Rakeysh Mehra Vishal Bhardwaj Fashion Fear Taare Zameen Par - Madhur Bhandarkar - Vikram Bhat - Aamir Khan John Abraham Hritik Roshan Jaane Tu Ya Jaane Na Wednesday No Problem - Aamir Khan - Neeraj Pandey - Anees Bazmee Ashutosh Gowarikar Simi Nalaseth HOLLY- WOOD REGIONAL Namesake I Think I Love My Wife Kannamoochi Yenada - Mira Nair / Fox - Chris Rock / Fox - Radaan Anurag Basu Aamir Khan Delhi 6 Paanch Kaurav - Rakeysh Mehra - Rakeysh Mehra Will Smith Untitled - Priyadarshan HINDI Rahgeer - Rituparno Ghosh Julia - Vishal Bhardwaj Untiltled - Anurag Basu Shiksha - Prakash Jha HOLLYWOOD The Happening - M Night Shyamalan Dream Blanket - Simi Nalaseth ANIMATION Arjun Alibaba - Arnab Chaudhary - Shoumitra Ranade Krishna - Rakeysh Mehra 12
Key differentiating factor Partnerships in Hollywood space Fox: Co-production of Namesake, I think I love my Wife & The Happening Sony Pictures: co-production/ distribution Overbrook/ Will Smith: Co-production of two movies Proposed partnership with World major for Indian Movies Investment in to all Indian movies produced by UTV Potential Innovation Scale Fastest growing sector Scalable business Highest growth segment in Media International distribution learnings Home video access in International markets More investments in domestic production Widespread branding Global footprint Objective: To emerge as the production house with highest market share by 2009 Scale: International footprint to contribute over 40% of revenues Positioning: Better brand awareness Operations: De-risking of business model 13
Television Industry Future Growth First Step Fragmented Multi-genre, multilingual and multi channel strategy Own channels Inorganic growth through tie-ups and M&As Branded shows Syndication Exclusive Air-time marketing with Radaan (largest content producer on Sun TV) Additional top line of USD 10 million Potential M&A Presently, TV Content hours per month 20, growing Youth channel to further boost the scale in fiscal 2008 Airtime Sales/ marketing hours per month 80, growing to over 120 14
UTV Motion Picture (PLC) Positioning GLOBAL INDIAN STUDIO Indian slate Implementation Hollywood slate Global M&As 15
New Media 16
New Media Inorganic growth Controlling stake in two GAMING companies IGNITION - 70% for $13 mn INDIAGAMES - 59% for $10.5 mn Worldwide Gaming capabilities Development Publishing Distribution Content for all gaming platforms Console PC Mobile More than 350 creative people from UK, US, Japan, India Phenomenal management depth Ownership levels Worldwide relationships with Content providers Distribution platforms Hardware Estimated industry size USD 29.5 bn growing at a CAGR of 11.4 % Console gaming software market $18 bn Wireless gaming market $2 bn Expected growth rate of wireless gaming over next 4 years Global : 28% India : 50 % PC 28% Online 7% Mobile 4% Gaming Software Industry 2005 $29.5 bn Console 61% 40% of Software sales in US followed by Japan & Europe 17
Console Gaming Business: Console Game development, publishing and distribution company Approved publisher and developer status with Sony, Microsoft and Nintendo Own IP: Archer Mclean s Mercury, Pool Paradise and Mercury Meltdown Infrastructure: Studios in London Wardevil: Game and a CGI Movie Next gen. game exclusively for Sony PS3 Expected to release in 2H-2008 Estimated budget of around $ 18 million Estimated revenues of over $ 35 million Mercury Meltdown Wardevil Exclusively for Sony PS3 ETR 2H2008 18
Wireless gaming Business: Largest developer and publisher of wireless games in India Pioneer in Games on Demand offering through broadband Key IPs Predator, Bruce Lee, Buffy, KamaSutra, Garfield, Playboy, Rush Hour 3 Infrastructure: Offices in Los Angeles, London, Beijing and Mumbai Employee strength of over 275 Relationships More than 80 telecom operators across 67 countries around the World All major game publishers in the World such as EA, THQ, Ubisoft, etc 19
Animation Infrastructure 225 seats moving to 700 in one year Present Order book around $17 ml Outsourcing Global clients like Disney, BKN, Mike Young, Freej and Classic Media Others Co-productions Entered into co-production of full length feature film Jay Jay s Race Around The World with Porchlight Movies 3 animation feature films with Will Smith s Overbrook Entertainment, Dream Blanket Directed by Simi Nalaseth and Arjun Directed by Arnab Goswami, Alibaba by Shoumitra Ranade 20
Post production & VFX USD 2 million invested in State-of-the-art facility Extended services to gaming and animation projects VFX & DI services to own movies and external projects International service outsourcing for VFX, color correction, versioning and restoration 21
New Media Growth Strategy Synergies Potential Target Across Animation, Mobile and Console game development Improved margins post integration Aligned acquisition strategy worldwide Synergies through sharing of global relationships India high growth destination for content on wireless Dearth of games on Nexgen consoles Achieve synergies through integration in next 100 days Operating Margins of approx 30% Raising expansion capital Rapid growth expected in the business 22
UTV UK : New Media Comprising Gaming Animation and Post & VFX Value drivers: Integration of all new media businesses Growth in margins through synergies Expansion plans include 1,000 people facility in Mumbai Animation Capacity expansion to accommodate further development work Ignition Additional investments to scale console game business Indiagames Widespread promotion of GoD business of Indiagames Acquisition of popular IPs for worldwide exploitation 23
Broadcasting 24
Broadcasting Missed the 1995 wave Will more than catch up in the 2007 re-alignment Pay DTH CAS Fragmentation + Split viewership at GEC level DRIVERS Audience wants specialised content Just a TV Network not enough here-on 25
Structure UTV Broadcasting Limited Own distribution Own teleport Retail & merchandise GenX Ent. Bindass 360 o youth space Upto 3 channels XXX Upto 7 channels V&S Broadcasting Upto 4 channels Olive 26
Implementation Strategic Partnerships Astro in GenX In Vareity and Specialty broadcasting In Broadcasting Holding Co. Brand Alliance in XXX Co. Roll Out Bindass : July 07 >> V&S : November 07 March 08 XXX : January 08 June 08 27
BoD & Management depth 28
Board of Directors Ronnie Screwvala, Chairman A media entrepreneur, Founder CEO of the UTV Group. One of the pioneers of Cable TV in India and in 1992 when Satellite TV made its debut in Asia, diversified UTV into TV Content, Dubbing, Post Production, Movies and New Media Zarina Mehta, Executive Director CEO - GenX Founder member of UTV, start-up and creation of some of UTV s major divisions and has produced over 3500 hours of high TRP, award-winning television programming in multiple languages. Credited with recent success of Hungama TV channel Ronald D Mello, Executive Director CEO New Media Associated with the Company since 1992. A Chartered Accountant by profession. More than 15 years of experience in manufacturing, hospitality and media industry. Deven Khote, Executive Director Deven Khote is one of the founders of UTV. A renowned director of commercials in India, Deven has over 300 ad-films to his credit. Andy Bird, Non Executive Director President, Walt Disney International since January 2004, overseen remarkable expansion of Disney's businesses. Before Disney, he was with Time Warner for 10 years working in cable television, broadcasting and the wireless arena Kishore Biyani, Non Executive Director AS CEO, Future Group, He looks after its six verticals: Future Retail, Future Capital, Future Brands, Future Space, Future Logistics and Future Media. Sanjay Kulkarni, Non Executive Director He is a Banker who was associated with Citibank, 20th Century Finance Corporation Limited, Centurian Bank etc. A MBA from IIM Ahmedabad, he has been on our Board since December 2002. Suketu Shah, Non Executive Director President and Director of Mukand worked in organizations such as Bajaj Auto, International Finance Corporation, American Express Bank, etc Darius C Shroff, Non Executive Director Attorney at Law and Senior Partner in Crawford Bayley & Co., Solicitors & Advocates. Darius is also on the Board of various other companies, Associations, Chambers of Commerce, Bar Councils etc. 29
Content Ronnie Screwvala, CEO, UTV A media entrepreneur, is the Founder CEO of the UTV Group. Ronnie was one of the pioneers of Cable TV in India and in 1992 when Satellite TV made its debut in Asia, he was quick to seize the opportunity to diversify UTV into TV Content, Dubbing, Post Production, Movies and New Media. Siddharth Kapoor, Head - Revenues & Marketing A post graduate from Jamnalal Bajaj, Siddharth has around 10 years of work experience, most of them in media. Having worked with P&G and subsequently with Star, he was instrumental in the marketing of Star s Kaun Banega Crorepati. Ram Mirchandani, Head - Creative Ram heads Creative and Project development of Movies.He has around 19 years of experience and his last stint was with Modi Entertainment Group before joining UTV. Alpana Mishra, Head Production 12 years experience and worked with companies like Leo Entertainment, Lintas and Madison. Santosh Nair, Head, Air time sales 10 years of rich work experience in sales and marketing, all of it in media. He has worked with Nimbus and ETC prior to his appointment with UTV. Monisha Singh, Head - Creative, Television Production Started off as an anchor for a DD show in college after which she joined Balaji Telefilms handling the well known "K" Serials as the Creative Director. Mass communications post Graduate, had a two year stint with UTV as Creative Director before moving to Miditech as Vice President-Programming. 30
Content Long Term relationships Rakeysh Mehra Anurag Basu Simi Nalaseth Arnab Chaudhary John Abraham Kangana Ranaut Priyanka Chopra Shoumitra Ranade Director Director Animation Director Animation Director Actor Actor Actor Animation Director 31
New Media Ronald D Mello, CEO, New Media Associated with the Company since 1992. A Chartered Accountant by profession. More than 15 years of experience in manufacturing, hospitality and media industry. Deven Khote, Executive Director One of the founders of UTV. A renowned director of commercials in India, Deven has over 300 ad-films to his credit. Vijay Chadha, Managing Director, Ignition Founder and Managing Director of Ignition, he has been involved in the gaming industry since 1990. Holds key relationships for acquisitions with developers in UK, US and Japan. Andy Whitehurst, CTO, Ignition An experienced broadcast, animation, live action and CGI director with over 16 years of industry experience. He currently heads the studio Digi Guys which is developing a multi million dollar game War Devil exclusively for PS3. Vishal Gondal, MD, IndiaGames Leads a team of over 250 employees at IndiaGames, the company he started in 1999 and is the de-facto gaming guru of India with interests in mobile and online PC games. Samir Bangara, COO, IndiaGames A venture capitalist and investment banker who has been associated with Indiagames for 7 years as part of the seed stage investment, then as an investment banker and finally took over as COO 18 months ago. Jyotirmoy Saha, Head - BD, Animation 13 years of international experience across the spectrum of the digital media and has been attached to more than 300 episodes of animation. Spearheaded the setting up of pioneering broadband VOD applications in South East Asia. 32
Broadcasting Zarina Mehta, CEO, GenX Entertainment Founder member of UTV, start-up and creation of some of UTV s major divisions and has produced over 3500 hours of high TRP, award-winning television programming in multiple languages. Credited with recent success of Hungama TV channel. Shantonu Aditya, CEO V&S Broadcasting Mechanical Engineer and Management graduate from XLRI. Worked with SET, SET Discovery, CEO of Sahara One Media. 25 years of experience in a variety of businesses including Media, Consumer products and Engineering. Sameer Ganapathy, Head - Distribution 12 years experience, a decade of which in distribution, with Discovery and the One Alliance, launched/converted multiple channels into into pay mode. His last stint was at Sahara One, spearheading the domestic & international distribution for the entire network. Krishan Agarwal, Head - Technical 25 years of experience media, companies like Sahara Media, Radio City and Broadcast Engineering Consultants, Also credited with setting up one of the first private radio set-ups in the country. Shefali Mahajan, Head - Marketing An overall experience of more than nine years across Financial Services & Media(Print/online) industry.her last stint was with ABN AMRO Bank. 33
Corporate Structure & Financials 34
Corporate Structure UTV Software Communications Limited Content New Media Broadcasting UTV - IOM UTV Comm. - UK UTV Broadcasting 100% UTV - Mauritius 70% Ignition/ Digiguys 50% GenX Upto 3 channels UTV - US 59% Indiagames 90% UTV VnS Upto 4 channels Television 100% Animation & Post 26% XXX Upto 7 channels Business focus, growth through M&As and Value creation at each vertical separately and each entity has an independent scalable business model 35
Funding requirement Estimated funding requirement over a period of 3 years Movies : Rs 3.0 billion ($ 70 million) Broadcasting: Rs 9.0 billion ($ 200 million) New Media : Rs 2.0 billion ( $ 50 million) Fund raising Movies : AIM Admission float of upto $ 100 million Broadcasting: Strategic & Financial Investors New Media : Debt and financial Investors 36
MAURITIUS IOM INDIA Overseas Listing The Company being offered for admission to AIM of LSE UTV IOM Ltd based in Isle of Man is a 100% Subsidiary of UTV Software Communications Ltd. India Structure 100% Subsidiary in Mauritius to be the operating company Tax efficiencies through business operations in Mauritius All movies under production and incubation with Parent Co. being transferred Estimated timeframe : 3-4 months Estimated fund raising : Up to $100 mn Estimated dilution : up to 25% UTV Software Communications Ltd 100% UTV Motion Pictures PLC UTV Motion Pictures (Mauritius) Ltd 37
All set for quantum leap DRIVERS Content: Slate of 30 movies International Top notch slate Global M&As Broadcasting 8-14 channels Diversified but mainline bouquet with own distribution New Media Gaming + Animation Integration WARDEVIL High Growth worldwide in Wireless, Mobile, Console M&As We understand it. We execute it well 38
Thank You 39