Corporate presentation
June 2015
1Eros the leading Indian film studio
Executive Summary
Eros: a media company transforming into a digital company
1 A global leader in Indian film entertainment with strong box office market share 2 Strong revenue growth and solid track record of profitability 3 ErosNow strategically positioned to capture large digital opportunity in IndiaPAGE 2
Content is King
New film mix
65-70 films each year
Co-production
Acquisition Trinity
Pictures
•Hindi
•Regional language
•International
agreements
Exclusive premiere window
3,000+ film library(1 year after Theatrical Release)
PAGE 3
Eros: A Multi-Platform Model
Theatrical
Television
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
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
Digital and
Ancillary
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 4
Leading Theatrical Market Share
Participation in Average 3 of the Top 10 Releases in India Each Year(1)
Leading Market Share in United States(2)
$23.3m
$25.7m
$16.5m
$24.5m
$8.8m
$19.3m
Others
16%
Fox
4%
Reliance
12%
Eros
32%
YRF
14%
UTV
22%
$14.5m
$20.4m
$19.8m
Leading Market Share in United Kingdom(2)
$17.4m
$ 32.2m
$19.9m
Fox
5%
Reliance
11%
Other
15%
Eros
35%
$22.8m
$ 18.5m
$15.8m
YRF
14%
UTV
20%
(1) Includes films only distributed internationally by Eros. 3 of the Top 10 grossing Hindi films in CY'10 (Source: BoxOfficeIndia.com); 4 of the Top 10 Hindi films in CY'11 (Source: BoxOfficeIndia.com); 2 of the Top 10 Hindi films in CY'12 (Source: bollywoodhungama.com); 4 out of top 10 Hindi releases in CY'13 (Source: bollywoodhungama.com); 3 out of top 10 Hindi releases in CY'14 (Source: bollywoodhungama.com). Rupees converted to USD at average annual exchange rate.
(2) Represents market share of all theatrically released Indian language films 2011-2014 (Source: Rentrak)
PAGE 5
Diversified, Strong Revenue Growth
Strong Historical Revenue Growth
Revenue Mix by Channel
($ in millions)
$113
$156 $150 $165
$207 $215
$236
$284
Theatrical
43%
Digital & Ancillary
21%
$66
FY' 07 FY' 08 FY' 09 FY' 10 FY' 11 FY' 12 FY' 13 FY' 14 FY' 15
Solid Track Record of Profitability
Revenue Mix by Geography
Television
36%
($ in millions)
$101
Rest of the
World, 42%
$33
$48
$54 $54
$60
$67
$56
$80
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 6
Our Diversified Revenue Streams
Description Revenue Performance
1 Theatrical
Leading market share of Indian language films in India, UK and US
Broad, well-established global distribution network
Film releases in 50 countries and 25 languages
Portfolio approach by film, budget, genre and language
Regional language films are a key focus area
$50
$123
FY10 FY15
Television
2
License film content to content aggregators to reach Cable and Pay TV
subscribers
Long-term value in TV syndication from ongoing bundling of library content with new film releases
$53
$101
FY10 FY15
Digital
3
ErosNow has over 19m registered users
Music sales from new release film soundtracks and our library catalogue
SVOD and VOD offerings in international markets (US, UK, Asia, etc)
High growth as digitization of media increases across all platforms
$47
$60
FY10 FY15
Source: Website, company information and equity research
PAGE 7
2Our markets
Indian Media & Entertainment
Market
($ in billions)
Media & Entertainment Market Projected to Grow at 14%(1)
$32
'14 - '19 CAG R
$16
$3
$2
$4
$19
$3
$2
$5
$21
$4
$3
$5
$25
$5
$3
$5
$28
$5
$3
$6
$6
$3
$6
$16
19.8%
10.0%
8.0%
$8 $9 $10
$12 $14
15.5%
2014A 2015E 2016E 2017E 2018E 2019E
Television Print Film Other (2)
(1) Source: FICCI-KPMG Report 2015. Rupees converted to USD at 62.19
(2) 'Other' includes radio, music, out of home, animation & VFX, gaming and digital advertising segments
PAGE 9
India: High Growth and Attractive
Fundamentals
A rapidly growing economy…(1)
Projected GDP growth CAGR (2014 - 2020E)
With significant population expansion…(1)
(in billions) Population
2.0
12.9%
7.5%
4.6% 4.5%
1.1%
1.5
1
1.0
0.5
0.0
1.2
1.6
India China UK US Brazil
Highly favorable demographics(1)
Median age
38.9 36.7
30.7
($ in billions)
2000 2011 2050
Increasing annual disposable income(2)
$1,863
27.0
$1,744
$1,559
$1,616
Russia China Brazil India
2012 2013 2014 2015
(1) IMF World Economic Outlook as of April 2015 (2) FICCI-KPMG 2014 & 2015 Report
(3) CIA World Factbook (5/22/2015) (4) Euromonitor International
PAGE 10
To continue reading this noodl, please get the original version here.
distributed by |