Movies Interactive Television Broadcasting New Media
UTV Software Communications Limited Antique Media and Entertainment Conference, Mumbai
January 6, 2009 UTV business segments
TV Content Movies Broadcasting Gaming New Media
Own TV Content Hindi Network of the Console Internet Production future Digital Regional movies Mobile 3 strong segments Mobile Content Production Hollywood Joint Ventures Youth Online Segments Animation Music Sponsored Blocks Movies Publisher +IP Creators Entertainment Slate of over 45 Business movies Worldwide Business Web/Mobile Worldwide integral part market Technology distribution Portals Own distribution Full Studio Model network UTVi.com Worldwide Bindass.com Syndication utvatplay.com
Strategy Stay consolidated to have value creation across all 5 verticals in one Company for aligned shareholder interest…
2 A quick look at this fiscal…
9 Months FY09 revenue of Rs. 4,681 mn, up by 86% yoy
Positioned as one of leading and fastest growing Media and Entertainment company in India – One of the top 5 companies in terms of scale
Growth possible due to diversified yet synergistic business model
Unique positioning as compared with most of the diversified Companies focused on Broadcasting model - Content + Distribution + IP + Platform
A Unique play in this part of the world
Promoter interests fully aligned in media to this one listed vehicle only
3 UTV Team
Board of Directors Disney - 3 Promoters - 3 Independent - 6
CEO Group CFO
TV Content Motion Pictures Broadcasting Interactive New Media
CEO ED/CEO CEO COO CEO
COO, MD, Ignition CEO Bindass Spotboy
COO, COO, Movie MD, Indiagames Development channels
CEO, True Games COO, Development
Employee strength of 1,000 across all five verticals
4 Result Summary
Rs. Millions FY2008 9M FY2009 Revenues 4,342 4,251 - TV 1,006 1,013 Achieved almost - Movies 2,424 1,887 100% of - Games Content 956 707 FY08 revenues - New Media - 143 - Broadcasting - 548 in 9M FY2009 Less: Inter segment (44) (47) EBITDA Margins FY08 9M FY09 Segment Result 829 312 19% 7% - TV 180 45 18% 4% - Movies 556 543 23% 29% - Games Content 93 (48) 10% -7% - New Media - (27) 0% -19% - Broadcasting - (200) 0% -37% PAT 777 878 Net Margins 18% 21%
Capital Employed 7,270 16,514 - TV 342 401 - Movies 4,465 8,248 - Games Content 1,093 2,712 - New Media - 349 - Broadcasting - 3,135 - Unallocable 1,369 1,669 * FY2008 numbers are audited
5 Results Comparison
FY2008 FY2009
1,947 2000 1,786 1800 1,622 1600 1,452 1400 1,244 1200
1000 735 800 Rs.Million 571 600 328 400 231 271 251 299 176 200 91 0 1Q08 2Q08 3Q08 4Q08 1Q09 Q209 Q309 Revenue PAT
Consistent growth reported Y-o-Y
6 What sets us apart
Non replicable Combination of our 5 verticals & its positioning and model partners gives us a 5 year head start for anyone to replicate at this scale over 5 verticals.
Content Focus Most of the Multi play models are either “Platform” or “Distribution” OR “Infrastructure” focused; While UTV’s origin and focus is “Content” first and then owning or controlling distribution platforms for the Content we Create or Aggregate.
Intellectual Property IP being created and retained in all our verticals. Strong value creator for the future and a robust annuity model.
Top end of the value Except for TV Content, all our businesses have a direct chain connect with the consumer.
7 What sets us apart
Global Footprint In Gaming - World is our market In Movies - 26 to 30 countries day & date release In Broadcasting – Migrant Population & Platforms like IPTV and DTH spread worldwide In Web & Digital – The world
Leadership Position In all our businesses Already there OR will be there soon
Growth through We understand and have a track record which very few M&A’s others have and have proven integration and growth of the same
Global Partner like Disney Committed to high growth and value addition in all Disney 5 verticals.
8 Disney Connect
Total investment of Rs 10 billion over a period of 2 years into the company – largest investment in part of the world
Not just a financial investment – Disney committed to drive growth, synergies and significant value addition in all 5 business verticals
Its evident by ABC News exclusive alliance with UTV News in just 10 days after announcement
Disney distributed Tare Zameen Par home video in International markets for UTV
UTV to exclusively distribute all Disney releases in India
… and this is just the beginning
9 Disney Connect
Some more identified areas of synergies in short term
Indian Movie co-productions
Worldwide DVD distribution & TV Syndication of Indian Movies
Disney/ABC: Best TV Formats; JV for Indian market
International distribution for our channels
Combining Disney channels in India on our distribution platform
Access to their retail and franchise chain in India for Bindass
Examining synergies in gaming – publishing and distribution of our original IP
10 Revenue distribution among verticals
2008A
Movies 55% Gaming 22%
TV 23% 2009E 2010E
Movies Gaming 47% Gaming 32% Movies 19% 43% Broadcastin g 11% Broadcasting 12%
New Media 4% New Media TV TV 3% 10% 19% 11 Best revenue mix among the media companies in India
Revenue Streams Contribution 1 Advertising (A&S and Broadcasting) 18% 2 Box Office 18% 3 Home Video & Music sales 8% 4 Broadcasters (TV Content & Movie syndication) 35% 5 Telcos (Gaming) 10% 6 Retail (Gaming) 11%
12 Shareholding Structure
Eq. Share – 34.2 million Eq. Share – 38.7 million (Pre Warrants Conversion) (Post Warrants Conversion**)
Public Public 16.7% 14.8% Promoters Promoters 23.3% 32.3%
Open offer Open Offer 22.7% 20.0%
Disney Disney 37.3% 32.9%
Notes: 1. Warrants conversion expected by November 2009 2. Open Offer shares are non-voting shares, Promoters have an option to buy back from Disney within 4 year period
Key Shareholders
The Walt Disney Company DSP Blackrock Reliance Capital Fidelity Alliance Bernstein Templeton
Market Cap on expanded equity is around Rs. 9.5 billion
13 Television
Air Time Sales We remain largest on the Sun Group Complementing model with our own productions Boost TV content portfolio Content in reality and Comedy genre – achieved significant QoQ growth Preferred programmer on our broadcasting network JVs with well known talent in TV industry
A very stable model positioned as one of the Top 2 players in the space
14 UTV Motion Pictures
Positioned as # 1 studio in the Industry today Best positioned to ride the downturn with as many as 45 movie pipeline in various stages of production Proven abilities to distribute movies across over 32 countries day and date Multiple movie talent relationships with renowned directors and actors
Our core competence:
Talent identification and then empower them
Content – Cutting edge yet very commercial
Marketing – very innovative
Scale & consistency
15 Movie release and pipeline
Movies released during FY2009 - Kismat Konnection, Aamir, Mumbai Meri Jaan, Wednesday, Welcome to Sajjanpur, Fashion, Oye Lucky Lucky Oye, Dev D Upcoming slate for next 12 months Name of Movies Exp Release Director / Cast
Dev D Q4 FY09 Abhay Deol, Introducing Mahi Gill & Kalki Delhi 6 Q4 FY09 Abhishek Bachchan, Sonam Kapoor -dir. by Rakeysh Mehra Dhoondte Reh Jaaoge Q4 FY09 Kunal Khemu, Zayed Khan, Soha Ali Khan, Celina Jaitley,
Kissan Q1 FY10 Sohail Khan, Arbaaz Khan, Jackie Shroff, Dia Mirza
Main aur Mrs. Khanna Q1 FY10 Salman Khan, Kareena Kapoor, Sohail Khan
Kaminay Q1 FY10 Shahid Kapoor, Priyanka Chopra
Yahoo Q1 FY10 Shahid Kapoor Ali Baba & the 41 thieves Q1 FY10 Animation film directed by Soumitro Ranade What's your Rashee? Q2 FY10 Priyanka Chopra, Harman Baweja Aage se Right Q2 FY10 Shreyas Talpade, KK Menon Peter Gaya Kaam Se Q2 FY10 Rajeev Khandelwal Rajniti Q3 FY10 Ranbir Kapoor, Ajay Devgan, Katrina Kaif Pan Singh Tomar Q3 FY10 Irrfan Khan Seasons Greetings Q3 FY10 Shreyas Talpade, Tabu, Sohail Khan Delhi Belly Q3 FY10 Co-produced with Aamir Khan with ensemble cast 16 Broadcasting
The best “Specialty” and “Genre” segment in India
– No 1 Hollywood channel
– No 1 Youth channel
– Unique positioning
– Synergistic with UTV Motion Pictures
Only bouquet to have pay channels from day one (excluding established Star, Zee & Sony)
Robust syndication model – in Content & taking Channels worldwide
17 Broadcasting – Going forward
Focus on Digital & Pay market - 1 channel in ONLY digital mode
Re-modeled investment plan
Down from Rs. 650-700 crs to Rs 460 crs
Rs. 360 crs already invested (UTV – Rs. 240 crs & Disney – Rs. 120 crs) and
Additional Rs. 100 crs
Loss projection scaled down
FY2009 (8 months): From Rs. 50 crs to Rs. 30-32 crs
FY2010 (12 months): From Rs. 75 crs to Rs. 30 crs
18 Games Content
Presence across all gaming distribution Platforms Console (Ignition) Mobile (Indiagames) Online (True Games) Key markets For consoles: USA/ UK+EU/ Japan For mobile: USA/ India/ APAC For online: USA/ emerging markets (Brazil, Turkey, etc.) Activities Original IP Creation Acquisition and publishing of IP IP creation hubs currently in London, Florida, Mumbai and Tokyo We are multiplatform and have 3 large IP’s under production in console gaming and three in True Games Business growing rapidly despite the current business environment – Indiagames reported a Q-on-Q growth of 20% in Q3FY09
19 New Media – Web/ Mobile
Presence across all new media distribution platforms – Web & mobile Strong verticals Business - UTVi.com Technology - ITNation Entertainment (UTV’s broadcast + movie assets) and (Acquisition of 15,000 songs including regional catalogues) – launching shortly Distribution & Alliances with telco’s worldwide Formidable presence from year 1 due to synergy with all our Content + Distribution pipelines + Channels Recent releases like Jodha Akbar and Singh is Kinng has been monetised well through this platform
20 Outlook
UTV is best positioned to survive this “storm” as compared to its peers Low dependence on the advertising revenues reduces potential impact Well diversified business portfolio - Leadership position in each segment is the objective Geographic diversification – more than 30% revenues from overseas markets in FY10 Engrained synergies with global partners / shareholders Constantly evaluating value unlocking opportunities across verticals
21 Thank You
22 Corporate Structure - Appendix
UTV Software Comm. Limited
100% 77% 100% 75% 100% United New IG Interactive UTV Global UTV Television UMP Plc media Ventures Ent Ltd Broadcasting Ltd
100% 76% 70% Ignition Ent, 100% UTV Comm, GENX ITNation Mauritius UK Media Pvt. Ltd
UTV 59% Indiagames 100% Entertainment Ltd Television 100% UTV Games Mauritius 80% True Games Ltd
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