DB Preso 11 March 2019

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DB Preso 11 March 2019 Eros International Plc Deutsche Bank 2019 Media, Internet & Telecom Conference March 11th, 2019 Eros Highlights 1 The global leader in Indian film entertainment with #1 box office market share 2 Largest content library of Indian language films with over 12,000 digital rights 3 Highly attractive market opportunity driven by secular tailwinds 4 Eros Now strategically positioned to capture large digital opportunity in India 5 Culture of innovation and partnerships with leading international talent 6 Experienced management team with track record of execution PAGE 2 Overview of Eros Eros International Plc Film Studio OTT Platform In-House Production / Film Acquisition / Co-Production Distribution World’s Leading Indian Digital Entertainment Platform Puja Entertainment (Subsidiary of Eros International) Largest India’s #1 Film Studio 142mm+ 12,000+ 15.9mm+ Share of Registered Digital Film Subscribers Indian OTT Users Rights Film Content 3,000+ 27%+ 100,000+ Global Film Box Office Audio Distribution Library Market Share Tracks Global, Multi-Channel Monetization Financial Summary Digital and Ancillary, FY 2018 32.5% Theatrical, AD Revenue: 30.3% $261mm Theatrical TV Syndication Advertising FY 2018 Adj. EBITDA: $$$ $79mm $ $ Adj. EBITDA TV Margin: 30% Syndication, Freemium Pay Per View Subscription Bundled Services 37.2% FY 2018 Revenue PAGE 3 Key Milestones 5mn+ Paid subscribers of Eros Now (Dec-2017) 80mm+ registered 2018 users on Eros Now (Dec-2017) 2017 Eros Now official 15.9mn+ Eros now paid marketing launch subscribers (Dec-2018) (Jul-2015) 2016 Eros Now registered users over 142mn) SVOD agreement Investment from with 2015 Reliance Industries Launch of Channel Established 2010– Expanded global distribution 2014 distribution network outside partnerships in India 2007– India + Overseas 2008 Early adopter of VHS distribution 2006 1982– 1998 Launched Digital distribution channels: 1981 1977 Listed EIML on the First Indian media company to list on Founded; began Listed Eros acquiring Launch of AIM PLC on (2) international IP first digital Adoption of vertically integrated rights for Indian Bollywood Announced Techzone content TV network(¹) mode acquisition Pioneer and Innovator in Indian Film with 40+ year track record 1. Eros PLC currently has a 24% stake in B4U 2. Eros PLC delisted from LSE AIM market and commenced trading its ‘A’ ordinary shares on the NYSE PAGE 4 Eros Now: World’s Leading Indian Digital Entertainment Platform Our Addressable Market is a Quarter of the World’s Population 5M 135 Europe Target ü Countries incl. India Population 142M ü Registered Users 15.9M ü Paying Subscribers 423M1 Pakistan + South East Asia Target 6.5M Population 12,000+ North America ü Digital Rights Target Population 1.3B India Population 16M Middle East Target Population 0.8M Key Markets Australasia Target Population Note: 1. Includes Pakistan, Bangladesh, Malaysia, Bhutan and Nepal PAGE 5 Conservative Balance Sheet Select Balance Sheet Items Cash and Net Debt Leverage ($m) ($ in millions) 31-Dec-18 Net Debt / EBITDA 1.4x 1.6x 1.8x 2.8x 2.4x 1.5x (1) Cash $134.9 182.8 Total Debt $294.0 153.7 Net Debt $159.1 145.4 134.9 Shareholders’ Equity (Book 112.3 $1,089.0 value) Total Capitalization (Book $1,383.0 87.8 value) LTM Adj. EBITDA $105.90 Net Debt / LTM Adj. EBITDA 1.50x Total Debt / Total 21.26% Capitalization FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 Q3 (1) Includes cash and cash equivalents and cash proceeds from the August 2018 RIL investment of $88.2m and $46.6m, respectively. (2) Represents LTM Adjusted EBITDA plus LTM amortization of film and content rights from cash floW statement. PAGE 6 Institutional Shareholders As of Dec 31, 2018 13-F period $ Value @ 10.00/share # Firm % Outstanding Position ('000s) ('$000s) 1 Capital World Investors 13.1% 8,364 $83,638 2 Paradice Investment Management LLC 9.1% 5,831 58,314 3 Reliance Industries Ltd 4.9% 3,111 31,111 4 Temasek Holdings Pte. Ltd. 4.3% 2,755 27,553 5 Gilder Gagnon Howe & Co. LLC 4.3% 2,745 27,445 6 New Jersey Division of Investment 3.8% 2,404 24,040 7 BlackRock Investment Management, LLC 2.7% 1,725 17,249 8 Teachers Insurance & Annuity Assoc (Nuveen) 2.5% 1,580 15,800 9 Jupiter Asset Management Ltd. 2.4% 1,552 15,519 10 Millennium Management LLC 2.3% 1,480 14,799 11 IFM Independent Fund Management AG 2.0% 1,292 12,915 12 Susquehanna International Group, LLP 1.4% 865 8,649 13 Bank of America Corp 1.2% 777 7,765 14 Morgan Stanley & Co. LLC 1.1% 707 7,071 15 Barclays Plc 0.9% 604 6,038 Subtotal 56.01% 35,791 357,906 Source: Thomson Reuters. Note: Based on total class A shares outstanding of 63,899,220. PAGE 7 Attractive Valuation Relative to Peers OTT Indian Media Studio / Entertainment U.S. Online China Online FV / 2019E Revenue 8.2x 7.4x 6.7x 6.6x 6.7x 5.2x 2.7x 3.2x 3.0x 1.6x Eros International Netflix Zee Entertainment WWE Disney Lionsgate Facebook Amazon Tencent Alibaba Plc. (1)(2) (3) FV / 2019E EBITDA 56.8x 22.9x 19.8x 19.6x 22.1x 15.5x 11.1x 11.7x 12.7x 7.2x Eros International Netflix Zee Entertainment WWE Disney Lionsgate FaceBook Amazon Tencent AlibaBa Plc. (1)(2) (3) Source: Company website, Company filings, Wall Street research, Bloomberg and FactSet. Note: Market data as of 3/7/2019. (1) Adjusted for EIML non-controlling interest of $42mm based on ~38% of market cap as of 3/7/2019. (2) Based on calendarized 2019 street consensus estimates of $325mm revenue 1 and $124mm EBITDA. (3) FV / 2020E. PAGE 8 Disclaimer This presentation contains “forward-looking statements.” These statements include, among other things, the discussions of our business strategy and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources, tax assessment orders and future capital expenditures. All of our forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we are expecting, including, without limitation, the factors discussed in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission on July 31, 2018 (the “20-F”), including under the sections captioned “Risk Factors.” The forward-looking statements contained in this presentation are based on historical performance and management’s current plans, estimates and expectations in light of information currently available to us and are subject to uncertainty and changes in circumstances. There can be no assurance that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors, many of which are beyond our control, as well as the other factors described in the 20-F under the sections captioned “Risk Factors.” Additional factors or events that could cause our actual results to differ may also emerge from time to time, and it is not possible for us to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove to be incorrect, our actual results may vary in material respects from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement made by us in this presentation speaks only as of the date on which we make it. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable securities laws. We use market data and industry forecasts in this presentation. Unless otherwise indicated, statements in this presentation concerning our industries and the markets in which we operate, including our general expectations, competitive position, business opportunity and market size, growth and share, are based on publicly available information, periodic industry publications and surveys and reports by market research firms. We have not independently verified market data and industry forecasts provided by any of these or any other third-party sources referred to in this presentation, although we believe such market data and industry forecasts included in this presentation are reliable. This information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in surveys of market size. Management estimates are derived from the information and data referred to above, as well as our internal research, calculations and assumptions made by us based on our analysis of such information and data and our knowledge of our industries and markets, which we believe to be reasonable, although they have not been independently verified. While we believe that the market position information included in this presentation is generally reliable, such information is inherently imprecise. Assumptions, expectations and estimates of our future performance and the future performance of the industries and markets in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the 20-F. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us. PAGE 9.
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