Movies Interactive Television Broadcasting New Media
UTV Software Communications Limited JP Morgan Meet, Mumbai November 6, 2008 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 the growth story…
Achieved over 100% revenue growth during FY08
Q2FY09 revenue of Rs. 1,709 mn, up by 133% 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 Play like UTV is absent
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 1H FY2009 Revenues 4,342 2,902 - TV 1,006 656 - Films 2,424 1,566 Achieved 67% of - Interactive 956 361 FY08 revenues - New Media - 89 in 1H FY2009 - Broadcasting - 248 Less: Inter segment (44) (17) EBITDA Margins FY08 1H FY09 EBITDA 777 177 18% 6% - TV 183 25 18% 4% - Films 480 328 20% 21% - Interactive 114 (60) 12% -17% - New Media - (28) 0% -32% - Broadcasting - (87) 0% -35% PAT 777 579 Net Margins 18% 20% Capital Employed 7,270 15,555 - TV 342 314 - Films 4,465 7,259 - Interactive 1,093 2,564 - New Media - 309 - Broadcasting - 3,040 - Unallocable 1,369 2,069 * FY2008 numbers are audited
5 Results Comparison
FY2008 FY2009 Significant growth expected during 2H09 1,947 2000 1,709 1800 1600 1,452 1400 1,244 1200
1000 735 800 Rs.Million 571 600 328 400 231 271 251 176 91 200 0 1Q08 2Q08 3Q08 4Q08 1Q09 Q209 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
… 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
Distribution of Disney Movies in India through UTV
Examining synergies in gaming – publishing and distribution of our original IP
10 Revenue distribution among verticals
2008A
Movies 55% Interactive 22%
TV 23% 2009E 2010E
Movies 49% Interactive Movies Interactive 18% 40% 40%
Broadcastin Broadcasting g 12% 4%
New Media 4% New Media TV TV 3% 12% 18%
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 Merrill Lynch Reliance Capital Fidelity Alliance Bernstein
Market Cap on expanded equity is around Rs. 16.3 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 known talent Evaluating options for acquisition of majority stakes in production houses
With this we will move to Top 2 as the space grows and consolidate
14 UTV Motion Pictures
Positioned as # 1 studio in the Industry today Demonstrated studio model with one of the largest movie slate – over 45 movies 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 UTV Motion Pictures
Movies released during FY2009 - Kismat Konnection, Aamir, Mumbai Meri Jaan, Wednesday, Welcome to Sajjanpur, Fashion Upcoming slate for next 12 months
Oye Lucky! Lucky Oye! Nov 2008 Abhay Deol Dev D Q4 FY09 Abhay Deol, Introducing Mahi Gill & Kalki Delhi 6 Q4 FY09 Abhishek Bachchan, Sonam Kapoor -dir. by Rakeysh Mehra Main aur Mrs. Khanna Q4 FY09 Salman Khan, Kareena Kapoor, Sohail Khan Dhoondte Reh Jaaoge Q4 FY09 Kunal Khemu, Zayed Khan, Soha Ali Khan, Celina Jaitley, Kaminay Q1 FY10 Shahid Kapoor, Priyanka Chopra Kissan Q1 FY10 Sohail Khan, Arbaaz Khan, Jackie Shroff, Dia Mirza 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 Productions 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 and look at taking upto 2 channels in
digital mode only
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 to
FY2009 (8 months): From Rs. 50 crs to Rs. 20-25 crs
FY2010 (12 months): From Rs. 75 crs to Rs. 20 crs
18 Gaming / Interactive
Presence across 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 two in True Games
19 New Media Digital – 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 50% 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% 100% UTV Comm, 70% Ignition Ent, GENX ITNation Mauritius UK Media Pvt. Ltd UTV 100% Entertainment Television 59% Indiagames Ltd
True Games Ltd
23