Company Presentation 15 th July 2010 Agenda 1. Q1 FY10-11 - - - PowerPoint PPT Presentation

Company Presentation

15th July 2010

Agenda

1. Q1 FY10-11 - Headlines 2. Each Business – Key Points (with Audio Visual) i. TV Content ii. New Media/ Interactive iii. UTV India Games iv. UTV True Games v. UTV Ignition vi. Broadcasting vii. Motion Pictures 3. What UTV knows & does best 4. Q2 Visibility 5. Full Year 6. Growth and 2011-12 7. Q & A

Page 2

Q1 FY10 –11 - Headlines

Page 3

Q1 - Headlines

YOY Change

• Revenue

: 89.8Cr to 208.2Cr (132% growth)

• EBIT

:(-34.7)Cr to 46.7Cr

• PAT

: (-31.75)Cr to 40.2Cr

• After Minority

: (-23.3)Cr to 41.2Cr (major consolidation of holdings) 55% 12% 24% 6% 3%

Revenue Break Up

Motion Pictures TV Content Broadcasting Games New Media

Page 4

Q1 - Headlines

EBITDA Contribution

• Motion Pictures
• Main contributor for Q1
• Syndication = 30% (with 95% margin)
• Q1 Releases at 54% & Hollywood at 16%

Note: Raajneeti SAT TV + Love Stories- not in Q1results

• Broadcasting
• EBITDA positive (before time) at Rs 3.76Cr
• Games
• UTV India Games – loss of Rs 1.50 Cr(started 2 new initiatives)
• UTV True Games – loss of Rs 0.50 Cr (overheads pre launch)
• UTV Ignition - Loss of Rs 1Cr (publishing expenses as release from Q2)
• Non Cash “Translation” Forex loss – Rs 1 Cr

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TV Content

Page 6

TV Content

• Moved into “High Growth” & “Leadership” mode – from “Steady” growth mode
• Quasi Broadcaster on Sun Network, and:
• Over 125 hours/month
• 50% our own Productions – (Major shift)
• No1 show on Sun TV and Surya TV
• TV shows on GECs include:

a) Daily on Imagine – Prime Time – starts this month b) Daily on Star Plus – Prime Time starts September c) 2 Marathi dailies on Air d) 3 shows on Bindass including EA -2 - starts –Aug/Sept e) Meti-oli - hit show in Hindi daily f) Boogie-Woogie on Air on Sony g) 3 dailies & 2 Bi-weeklies on Air on Sun Network & More from Oct ’10

• nwards.

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TV Content (contd.)

• With all above locked – we see clear visibility on our financial growth figures
• Rs 160 Cr in FY10-11 from Rs 100 Cr achieved during FY09-10 (YoY 60% growth)
• We aim to reach leadership position in 18 months
• Based on No of Shows on air, we will be the leader by Q3

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New Media

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New Media / Interactive

• A scalable “Business” focus – no longer just synergy for Group Verticals
• Innovative offering – UTV Audio Cinema, already with 1.5million subscribers & consumer

spending at Rs3.5 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)

• Best prepared for 3G (a) Audio (b) Celebrity (c) “Made for Mobile” products
• First Web/Digital scalable play in India – EBITDA positive in first year
• Goal :
• Top 2/3 mobile content players(if not no.1 with India Games)
• Top 10 web plays in India – with Celeb, Techtree and other planned innovations

Page 10

Games –

Page 11

Games :

• 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
• Rs 50 Crores in Revenue & EBITDA profitable in FY10-11

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Page 13

Games -

• Online Games – MMOG – Multiplayer Revenue Model
• Revenue Model

a) Pay as you play – in USA b) Syndicated Revenues – worldwide c) Migrate to other formats / platforms

• 3 Games launch in FY10-11
• Mytheon (Q2)
• Heaven & Hell (Q4)
• Aerodrome (Q4)
• First year of operation / Revenue and EBITDA positive

Page 14

Page 15

Games :

• Existing Business:
• 3 AAA IPs
• 2 smaller but strong IPs
• Worldwide Publishing
• 3 AAA IPs
• 2 Games El Shaddai & Reich – ready for release this Fiscal - no delays
• 3rd one – War Devil – moved by 6-9 months
• Gone multiplatform Vs single
• Taken opportunity to pace release so as not to offer 3 IPs for pre sale in one year

Page 16

Games:

• Monetization process:
• MG on Game – per territory or worldwide
• Co Production Partner
• Co Investor into that studio
• Publisher/distributor will invest in marketing and cost of goods & finalize release Qtr
• Revenue Models (for each AAA Game):
• 1. The Game on PS3 & XBOX 360
• 2. The Game on Digital & other formats/platforms
• 3. Sequels
• 4. Movie Production Rights - we have script + 45mins of Movie Quality Graphics
• 5. Comic Books & Publishing
• 6. License other territories
• 7. The Full Studio

Page 17

Games:

• THQ
• KONAMI
• SONY
• LEGENDARY PICTURES
• BANDAI NAMCO
• STAR ENTERTAINMENT
• SQUARE ENIX
• CAPCOM
• WARNER BROS
• MICROSOFT
• ELECTRONIC ARTS (EA)
• PERFECT WORLD
• ACTIVISION
• KOCH MEDIA
• SEGA

List of Companies who are in discussion with us for Pre-Sale of each game:

• El Shaddai
• First out for Pre Sale
• Reason – Plans at Tokyo Game Show

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• Break even Qty per game is approximately 1 million units
• Which works out to ~165K units/ per platform (PS3 & XBOX 360), per 3 main territories

(USA/Japan/EU & UK)

• Brief Statistics on Top Console Games :

Source: VGChartz.com 2009 Data

• Industry status last 18 months & dearth of AAA games for release over next 12 months

Games:

2009 CY No 1 No 25 No 1 No 25 USA 3.2 mn 380 k 6 mn 660 k Europe 2.8 mn 400 k 2.7 mn 340 k Japan 1.7 mn 70 k 210 k 31 k PS3 Xbox 360

AAA Titles Released Per Year:

• Total 25-30
• Original Titles <10

Page 19

Games:

• Plan/Timeline – on 3 AAA Titles
• August’ 10 end El Shaddai playable, along with 2nd Road Show
• August ‘10– Reich playable , along with 1st Road Show
• Sept’10 – 1st Road Show on War Devil – for Co Producer
• Sept’10 – Tokyo Game Show – Consumer unveiling of El Shaddai – act as major push

for Publisher/Distribution deal closure

• Oct/Nov’10 – close Pre Sales on El Shaddai
• Oct/Nov’10 – 2nd Road Show on Reich
• NOTE: we are ready to release El Shaddai & Reich in FY10-11 – but post Pre Sale will also

depend on Publisher

Page 20

Games:

• 2 smaller strong IPs
• Both Releasing in FY11-12
• Much shorter cycle of Production
• Cost range USD 1.5 – 3 million
• Publishing:
• Tango Down on XBOX 360 & PC launched in Q2. Till date sold _______units
• Tango Down on PS3 releases in Aug/Sept 2010
• We have 6-8 titles for release this year
• Financials
• Estimated 80cr from Publishing; positive contribution towards EBITDA , and tracking

well

• 3 IPs – in our projections– we have looked at only MG & Pre Sale of one Game “El

Shaddai”- & with no overflows or Revenue from other Rights

Page 21

Broadcasting

Page 22

Broadcasting

• The most valuable “Mass Specialty Network of Channels”
• Revenue & Scale – In Top 5 Networks of Country
• EBITDA wise – to be in Top 2-3 networks in the country
• 100-125% growth YOY from Last year on Adv & Sub Revenues
• Of our Projected Rs 220 Cr Revenue for FY10-11 (up 100% from around 110

Cr in FY09-10 excluding Syndication), we have signed/locked Rs 150 Cr (70%)

• EBITDA Breakeven/Positive (as committed) from this Quarter & Year
• Q1 run rate of Rs. 48 Cr already on course for Annual target of 220 Cr
• “UTV Action” – Break Even in One Year

Page 23

Broadcasting

• FY11-12 – Just these 4 Channels (excluding potential new ones) – aim to

grow @ 50% & demonstrate a 25-30% EBITDA margin model

• Defined Goal for New Channels:
• Work as Low Capital Employed start ups
• Formula for Breakeven/EBITDA Positive in 18 months
• Should have 360° Revenue potential - Web/Digital/Ground
• Overall: Strong stable Business Model – clear visibility on Q on Q and

growth & coupled with our high growth TV Content Business = strong contributor for offering up to 40% consistency & predictability to overall UTV Model

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Motion Pictures

Page 25

Motion Pictures

• We are not a “Corporate” – we are a “Studio”:
• Creative
• All talent casting
• Marketing & Distribution
• In FY10-11 we are the No.1 Movie Studio in India – in terms No of Releases/ Revenue/Box

Office

• We have 11-12 Movies Releasing this year – well balanced quarters
• Only Studio with 8-10 movies for next year 2011-2012 Release-locked
• Right Cost Model here on
• Marketing Prowess – gets us higher Box Office & attracts all to work with us
• In this year FY10-11, 3 of the Top 5 at the Box Office (if not 3/3) will be UTV
• Undisputed Leadership – We are twice the size of our nearest competitor

Page 26

Motion Pictures (contd…)

• Of our Projected Rs 450 Cr Revenue for FY10-11 (up 95% from 230 Cr in FY09-10 excluding

Hollywood), we have signed/locked Rs 237 Cr

• Next 24 to 36months, clear visibility on:
• a. Forward slate & scale & growth
• b. Right Costs

c. Pre Sales & De Risk strategy

• d. Consistency – low lumpiness Q on Q

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What UTV Knows & Does Best

Page 28

Know & Do Best

1) Best creative company and team in Media in India 2) We reach more consumers worldwide than any media brands in India across television/theater/consoles/mobile and web – combined at 270 million consumers In Comparison, the No. 1 Broadcast Network in India reaches 172 million, and No. 1 print group reaches 12.7 million 3) Attract & close – Top notch Investors/Partners 4) Consistently delivered good to great shareholder returns – since IPO @130 5) Should be in Top 3 media companies – on EBITDA – this year 6) Reach Leadership positions in shortest time 7) First mover and fast mover 8) We have the most diversified revenue streams of ‘any’ media company in India 9) We are a “CONSUMER” & “ENTERTAINMENT” Brand

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UTV Sub Brands

BROADCAST________________________________________ GAMING_____________________________________________ ____________ NEW MEDIA__________________________________________

Q2 - Visibility

Page 31

Q2 - Visibility

• Equivalent to Q1
• Visibility
• Broadcasting – Q1 Run Rate already reached Annual target & Q on Q will grow
• UTV India Games – aims to be positive this QTR
• UTV True Games – “Mytheon” launch and its syndication
• UTV Ignition – “Tango Down”
• New Media – on Track & Celebrity launch
• TV Content – New shows added this Qtr and all others staying on
• Movies
• Sat TV Rajneeti
• All Rev of I hate Love Stories
• Udaan
• Peepli Live
• We are Family

Page 32

Full Year - Visibility

Page 33

Full Year Visibility

Motion Pictures :

• Promising Slate/Presales/Q1&2 visibility

Broadcasting:

• On a quarterly run rate basis, Annual targets achieved

TV Content:

• Has shared the New shows on Air

Ignition:

• Publishing Visibility
• Only one game – El Shaddai – Pre Sale MG on Game only

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Growth & 2011 -12

Page 35

Growth & 2011 - 12

Motion Pictures

• Strongest Base (’10-’11)
• more than 50% forward slate – locked in advance
• Key alliances – Dharma/AKP & many more
• Focus on new revenue streams & exploiting library
• leadership position & strong creative & marketing will result in higher growth

Games:

• UTV Indiagames – 3G/Online & Broadband & 4G/DTH/New Tech
• UTV True Games – 3 IPs & 3 new and in MMOG – long life
• UTV Ignition – 2 AAA IPs and 2 smaller strong IPs & strategic partner/investor & liquidity

event

Page 36

Growth & 2011 - 12 (contd..)

New Media

• Focused Rev Growth on Mob/Web
• Audio & Celebrity = strong Dominant Positions
• Scale will reduce dependency on Telcos & improve margins

TV Content

• Grow on Renewed Base

Broadcasting

• Should see 50% growth on existing Channels
• Clear agenda on New Channels with parameters as set out earlier

Page 37

Q & A