UTV Software Communications Ltd November 2010 - Capturing India’s High Consumption Growth Our 3 year wait & strategy has paid off More Indians consume UTV branded content versus any other media company - ~270 million consumers (est.) via: • Our TV Shows across all Hindi GECs and Sun Network in the South • Our Broadcast Channels • Our Movies in Theatres, Television, Home video, IPTV and Mobile • Our Games • Our Interactive Content on Web & Mobile Page 2 UTV | Reach and Scale In South Asia we are: • The Number 1 Movie Studio • The Number 1 Games Company • The Number 1 Youth Brand • The Number 1 Content Provider We are also: • The Fastest Growing Media & Entertainment company • Expecting 70% Growth in 2010-11 • The only diversified Media & Entertainment company with all businesses consolidated in one listed entity Page 3 UTV | Financial Overview SUMMARY FINANCIALS (Rs. Mn) Revenue mix H1 ‘11A FY '10 H1 '11 Gaming & Revenues Interactive Movies 3,154 2,315 12% Television 2,490 1,528 Gaming & Interactive 1,070 533 Movies Total Operating Revenues* 6,641 4,371 Television 53% 35% Segment Result Movies 951 969 Total: INR 4,371 mn % Margin 30% 42% Television (2) 93 % Margin NA 6% 8,000 Gaming & Interactive (148) 12 6,641 % Margin NA 2% 6,066 801 1,074 6,000 CAGR : 27% PAT 502 814 4,352 % Margin 8% 19% 4,000 Capital Employed Movies 4,821 5,685 Television 4,568 4,938 1,749 Gaming & Interactive 5,292 6,559 2,000 Unallocable 2,669 1,995 FY '10 numbers are audited; *TotalRevenues exclude Inter-segment figures - FY07 FY08 FY09 FY10 Movies Television Gaming & Interactive 44 Page 4 Movies | Demonstrated Scale UTV is a Studio and not a Corporate or a Distributor / Financer This year we are the No.1 Movie Studio in India – in terms No of Releases/ Revenue/Box Office Integrated marketing and distribution network with proven ability across 45 countries Multiple talent relationships for multiple movies 11-12 Movies releasing this year – well balanced quarters Only Studio with around 10 movies for next year 2011-2012 Release-locked Marketing Prowess – gets us higher Box Office & attracts all to work with us Undisputed Leadership – We are twice the size of our nearest competitor Next 24 to 36 months, clear visibility on: • Forward slate & scale & growth • Right Costs • Pre Sales & De Risk strategy • Consistency – low lumpiness QoQ Page 5 UTV Games | 360 o Presence Console & Online Mobile, PC and DTH Publishing and IP creation across: PC Games • Console • Largest Sub base for Games on Demand • Digital on broadband in India • MMOG • Exclusive tie-ups with ISPs such as Airtel, BSNL & MTNL • Social • Exclusive distributor for Microsoft & EA 3 “AAA” Titles: in India • El Shaddai Mobile Games • Reich • Largest producer of Bollywood games • Wardevil • Largest aggregator of games from MMO Gaming Model based on Free-to-play studios overseas like EA, THQ, etc. Micro transactions for online games • Preferred and master service provide Studios in UK, Japan, US & China Only provider of DTH games in India Exclusive tie-ups with major telcos Winner of 2010 IDC Enterprise Innovation Award Page 6 Console Gaming | High projected growth Increasing high-end console sales contrary to Average sales volumes of top games global economic trends … Average Volumes* 2006 2007 2008 2009 (mn units) X360 Top 30 0.59 1.39 1.96 1.90 Top 50 0.43 0.96 1.46 1.40 (Units in Million) Average Volumes* 2006 2007 2008 2009 74 (mn units) PS3 65 Top 30 NA 0.68 1.46 1.50 Top 50 NA 0.47 1.11 1.10 43 44 37 19 27 CY 2009 PS3 X360 16 32 39 3 19 No 1 No 25 No 1 No 25 18 9 2006 2007 2008 2009 2010 YTD USA 3.2 mn 380 k 6.0 mn 660 k PS3 Xbox 360 Wii Europe 2.8 mn 400 k 2.7 mn 340 k Japan 1.7 mn 70 k 210 k 31 k Source: VGChartz, * Average of total sales of games released in the year zz Source: VGChartz ; Shown on a cumulative basis 7 Page 7 UTV Ignition | Overview Develops, publishes and distributes console games Awards & Recognitions across all major platforms • El Shaddai won ‘Most Anticipated Future Title’ Track record of successful games: award at the Tokyo Game Show, enabling it to • Mercury Meltdown, released in North America, be showcased as a premier title in 10,000+ Europe & Japan retail outlets across Japan • King of Fighters XII, released in North America (RRP • “Muramasa – The Demon Blade” adjudged the USD 59.99), Europe (RRP EUR 59.99) & UK (RRP Best Artistic Design and Best Action Game for GBP 39.99) Wii at E3 in 2009 • Muramasa – The Demon Blade, released in North • “The King of Fighters XII” adjudged the Best America (RRP USD 49.99) Fighting Game for PS3 in 2009 Signed an agreement to exploit the IP of Mercury, and • Blacklight Tango Down became one of the top 2 bring it onto digital (XBLA & PSN) platforms selling titles on XBLA during July 2010 8 Page 8 UTV Ignition & True Games| Infrastructure London, UK Game Development Studio Beijing, China MMOG Studio Austin, USA Console Game Tokyo, Japan Development Studio & MMOG HQ Game Development & Publishing Operational Presence Spanning: Console, Digital, MMOG and Social Games 9 Page 9 Online Gaming | Emerging opportunity Online gaming companies enjoy high EBIT margins Peak concurrent users of Top 10 Chinese games Westward Journey 2,322 Sales ($ mn) EBIT Margin ZT Online 1,578 (‘000 users) World of Warcraft 995 550 54% Popkart 800 Audition 780 767 39% TLBB 700 Dungeon & Fighter 700 191 68% Bomb & Bubble 700 Ask Tao 700 Source: Company Reports as of 31 Dec 2009 QQ Fantasy 680 0 500 1000 1500 2000 2500 Community development and engaging game play to drive online gaming format growth Source: Nomura Report, Jan 2009 • World of Warcraft has 11 mn players Monthly ARPUs indicate upward trend in China worldwide and raked in $104m in 2008 Online gaming model has seen great success Average Monthly ARPU 7.7 in Asia Pacific in China ($)* 6.3 5.0 • Asia Pacific subscription revenues for MMOG add up to $500m - $700m 1 US & Europe online gaming markets are growing 2006 2007 2008E 1 Wedbush: Entertainment Software Publishing and Retail; Industry Report 2009 Source: Nomura Report, Jan 2009 * USD/ CNY – 6.82 10 Page 10 UTV True Games | Overview US based online game developer & publisher • Creates and owns IPRs Free-to-Play micro-transaction based format Own platform in USA & Turkey supported by syndication for Europe & Asia Expansion packs anticipated to increase game longevity and momentum Planned supplementary Revenue Streams • In-Game advertising • Licensing/ Merchandising Signed a million dollar licensing deal for South East Asia territories with Yamaia Limited Recently launched the game ‘Warrior Epic’ Upcoming Games include: • Mytheon • Faxion • Planet Crashers • Sky Legends 11 Page 11 UTV Indiagames | Market Leader Market leader in Mobile Games in India Expanded in Games onto: • DTH • Online • iPad / iPhone ++ Headlines of key recent achievements : • DTH launch on Reliance Big – exclusive Games channel • 2 more DTH announcements soon • Bruce Lee – Top10 Game on iPad / iPhone – across USA/UK/Japan/EU • Online – Games on Demand crosses 50K subs @ Rs.150-200/month • Largest Producer of “Bollywood” Games • Winner of the 2010 IDC Enterprise Innovation Award 12 Page 12 Interactive | Good Start The Opportunity • 3G and 4G is expected to be the preferred way for consumers to consume content • UTV is well placed to benefit from the change in consumption pattern • Operator relationships at each level is a major plus • Existing exclusive contracts with telcos on short format content • Growing space will throw significant opportunities in B2C space for made to mobile content. Innovative offerings • UTV Audio Cinema, already with over 3.5 million subscribers & consumer spending over Rs. 5 Cr/month • Expanding “Audio” to 3 other equally large segments • “Celebrity” – exclusive with UTV on Mobile & Web – Dominant player from day one. • Pioneer of “Made for Mobile” Content – exclusive partnerships with Telcos (first announcement coming up in August) Goal : • Number 1 Content creator and Aggregator for 3G and 4G Proven capability to partner with multiple content providers across media 1313 Page 13 TV Content | At the vanguard of innovation Moved into “High Growth” & “Leadership” mode – from “Steady” growth mode Quasi Broadcaster on Sun Network with over 50% our own Productions – a Major shift No.1 show on Sun TV and Surya TV UTV produced TV shows on Air include: Name of the Show Frequency/ week Channel Genre Emotional Atyachar 1 Bindaas Reality The Assignment 1 Bloomberg UTV Reality Boogie Woogie 2 SONY Reality Prajakta 5 Mi Marathi Daily Soap RaktSambandh 5 Imagine Daily Soap Maaylek 6 ETV Marathi Daily Soap Rakhi Ka Insaaf 1 Imagine Reality Deala Na Deala 2 Sun TV Reality Deal Or No Deal 2 Surya TV Reality Ratha Saptami 5 Udaya TV Daily Soap Rakta Sambandham 5 Gemini TV Daily Soap Prerana 5 Udaya TV Daily Soap VeeraMarthandaVarma 6 Surya TV Daily Soap 1414 Page 14 Broadcasting | Channels Hindi Movie channel backed by the lineage of UTV One of the leading Youth channels having 360 o Motion Pictures presence across web, ground etc. Weekly GRPs 36 39 Weekly GRPs 31 16 Week 1 '09 Week 41 '10 Week 1 '09 Week 41 '10 Source: TAM, HSM, CS 15-24 AB Source: TAM, HSM, CS 4+ International blockbusters sub-titled in English Male focused, best of Hollywood action dubbed in Hindi Weekly GRPs 5.8 Weekly GRPs 27 3.2 11 Week 1 '09 Week 41 '10 Week 1 '10 Week 41 '10 Source: TAM, 5 Metros, CS 25+ A Source: TAM, HSM, CS 15+ Male Page 15 Broadcasting | Overview The most valuable “Mass Specialty Network of Channels” Revenue & Scale – In Top 5 Networks of Country 100% growth YOY on Adv & Sub Revenues EBITDA Breakeven achieved “UTV Action” – Break Even in One Year Key business drivers in medium term • International strategy for existing channels • DTH proliferation & hence growth in Subscription revenues Channel Week 15 ’09 (April 2009) Week 28 ’10 (July 2010) % variance UTV Group 51 103 100% Sahara Group 84 67 -20% NDTV Group 116 20 -83% Sony group 334 387 16% Viacom 18 404 368 -9% Zee Group 634 608 -4% Star Group 584 768 32% 1616 Page 16 Shareholding Structure Equity Shares – 40.6 million Public 29.9% Promoters 19.6% Disney Open Offer 19.1% Disney 31.4% Notes: Open Offer shares are contractually restricted from being voted upon.