FUTURE OF ENTERTAINMENT Eros International Plc (NYSE:EROS) - - PowerPoint PPT Presentation

▶

Dec 25, 2023 341 likes •710 views

FUTURE OF ENTERTAINMENT Eros International Plc (NYSE:EROS) Corporate Presentation March 2020 ENTERTAINMENT IN 1980 Fast Forward 4 Decades ENTERTAINMENT IN 2020 Theatres, TV, Mobile, Cross Platform Digital Entertainment Images The

SLIDE 1

FUTURE OF ENTERTAINMENT

March 2020

Eros International Plc (NYSE:EROS) Corporate Presentation

SLIDE 2

ENTERTAINMENT IN 1980

SLIDE 3

Fast Forward 4 Decades

SLIDE 4

Theatres, TV, Mobile, Cross Platform Digital Entertainment
Images

ENTERTAINMENT IN 2020

SLIDE 5

The changes that transpired in 40 years will now happen in the next 10 years

SLIDE 6

Entertainment in 2030

SLIDE 7

AR/VR & Immersive Video IOT wherein each device will be a smart device IOT will leverage Projection Tech Voice Based Interactions Digital Humans

SLIDE 8

Glocal is the only way to go? ‘The Eros Story’

SLIDE 9

Pioneer and Innovator in Indian Film with 40+ year track record

2007– 2008  Founded; began acquiring international IP rights for Indian content  Early adopter of VHS distribution 1977 1981  Launch of first digital Bollywood TV network(¹) 1982– 1998  First Indian media company to list on AIM  Adoption of vertically integrated mode  SVOD agreement with  Launch of Channel 2015  Expanded distribution partnerships in India + Overseas  15.9mn+ Eros now paid subscribers (Dec-2018)  Eros Now registered users

ver 142mn)

 Investment from Reliance Industries 2017 2006 2016 2018  Established global distribution network outside India  Launched Digital distribution channels:  Listed EIML

n the

 Listed Eros PLC on  Announced Techzone acquisition (2)  Eros Now official marketing launch (Jul-2015)  5mn+ Paid subscribers of Eros Now (Dec-2017)  80mm+ registered users on Eros Now (Dec-2017) 2010– 2014

3,000+

Film Library

100,000+

Audio Tracks

Global

Distribution In-House Production / Co- Production

INDIA’S NUMERO UNO STUDIO

SLIDE 10

New Film Mix 40–50 Films Each Year

Hindi
Regional

Language

International

Agreements

Co-Production Acquisition

Premiu ium Content Lib ibrary ry

3,000+ Film Library

12,000+ Digital Film Rights 5,000+ into Perpetuity Digital Premiere Window 100+ Originals over next 18 months 4,400 Short-form Videos 9 IIFA Awards 1 Filmfare Award 12 IIFA Awards 1 IIFA Award 1 TOIFA Award 1 TOIFA Award 1 IIFA Award Released Jan 2018

Deep and rich content library – underpinned by long-term rights to premium content

PREMIUM CONTENT LIBRARY

SLIDE 11

41% Market Share of Indian Films on an OTT Service

Indian Film OTT Library by Platform

22% 16% 19% 16% 12% 2% 12% 1%

41%

22% 16% 5% 16% 31% 3% 7%

20%

39% 11% 7% 10% 1% 14% 1% 12% 4% 2%

18%

32% 19% 5% 11% 10% 1% 21%

15%

65% 6% 10% 10% 6% 3%

5% % of Total OTT Library1

SLIDE 12

Over the last 10 years Eros has been responsible for 36 of the top 110 highest grossing box office films in India

SLIDE 13

EROS’ FILMS STRATEGY

SLIDE 14

High Quality Programming that is able to drive immersive experiences

PREMIUM STORIES GLOBAL

Content Driven Projects rather than Talent Driven Push Boundaries to ensure Films travel International

SLIDE 15

DOMESTIC The STUDIO BUSINESS INTERNTAIONAL

CO-PRODUCTIONS

AIRLINES TELEVISION MUSIC

SLIDE 16

& 50 Other Countries.

CROSSING BORDERS

SLIDE 17

Upcoming Blockbusters

SLIDE 18

Story driven films dive very well into digital consumption and in 2012 with our experience in the world of cinema the company felt there was an

pportunity for a global ‘digital’ play that was local

SLIDE 19

WITH A CAPABILITY TO SERVE 2B+ AUDIENCES WORLDWIDE

SLIDE 20

WAS BORN

7 YEARS LATER

SLIDE 21

STATUS NOW

186.9M 26.2M

registered users monthly paying subscribers

65%

35% Male Female

43.13%

18-24

36.97%

25-34

12.58%

35-44

Age Group Users

150

countries

SLIDE 22

LOCALIZED CONTENT STRATEGY FILMS QUICKIES ORIGINALS SHORT FILMS

SLIDE 23

DISTRIBUTION WITH 60 PARTNERS ACROSS THE WORLD

SLIDE 24

35+ MAJOR BRAND PARTNERS WITH RECURRING CONSUMPTION

SLIDE 25

WE DID IT FIRST!

Exclusive Movie Premieres only

n EROS NOW

Original Series Showcase at MIPCOM 2018

SLIDE 26

Personalization & Recommendation –
ptimized curation
Optimized delivery
Sub-titles

TECHNOLOGY

SLIDE 27

2019 WAS A FABULOUS YEAR FOR EROS NOW

Only Non-US brand to be launched with Apple+ Announced the biggest technology partnership with Microsoft Joint bundling of Eros Now + YouTube (Google) for INR 99/- 3 months First Indian brand to present Dolby Atmos and Vision on SVOD Targeting the Indian Villages in partnership with Veriown

SLIDE 28

Onwards and Upwards

Future

SLIDE 29

A PRIME PILLAR FOR GROWTH WILL BE

TECHNOLOGY

SLIDE 30

SLIDE 31

FROM A MASS ENTERTAIMENT SERVICE TO BECOME A

NETWORK

SLIDE 32

EROS NOW TO FURTHER EXPAND SUB BRANDS by 2021

SLIDE 33

Select Balance Sheet Items Strong Liquidity Profile – Cash Balance

($mm) 31-Dec-19 Total Cash & Cash Equivalents $44.9 Gross Debt(2) $221.2 Net Debt $176.3 Shareholders’ Equity (Book value) $723.4 Total Capitalization (Book value) $944.6 LTM Adj. EBITDA $61.4 Net Debt / LTM Adj. EBITDA 2.87x Total Debt / Total Capitalization 23.42%

294

Current Debt Facilities

Inde ndebtedness as on Dec 31 31, 20 2019 19 Senior Convertible Notes 40.8 Retail Bond 66.3 Term Loans 22.7 Working Capital Loans 91.9 Unamortized Cost (0.5) Gros

ss Debt

22 221.2 1.2

Declining Leverage

3.2x 3.1x 4.3x 4.8x 3.5x 2.7x 2.3x 2.8x 3.6x 1.4x 1.6x 1.7x 2.8x 2.4x 1.4x 1.5x 1.5x 2.9x FY14 FY15 FY16 FY17 FY18 FY19 Q1 FY20 Q2 FY20 Q3 FY20

Gross Debt / Adj. EBITDA Net Debt / Adj. EBITDA

113 161 120 158 189 145 140 113 176 145 154 183 112 88 136 81 99 45 FY14 FY15 FY16 FY17 FY18 FY19 Q1 FY20 Q2 FY20 Q3 FY20

($mm)

Net Debt Cash Gross Debt

281 221 212 221 315 270 303 277 258

Conservativ ive Bala lance Sheet

SLIDE 34

(1) Paying subscribers means any subscriber who has made a valid payment to subscribe to a service that includes the Eros Now service either as part of a bundle or on a standalone basis, either directly or indirectly through a telecom operator or OEM in any given month be it through a daily, weekly or monthly billing pack, as long as the validity of the pack is for at least one monthNote: Fiscal year end March-31. $ in millions.

Revenue Growth Declining Net Debt

158 189 145 FY17 FY18 FY19

($mm)

253 261 270 FY17 FY18 FY19 ($mm)

Adj. EBITDA Growth

56 83 104 FY17 FY18 FY19

($mm)

Declining Receivable Days

367 355 297 FY17 FY18 FY19

(#days)

11% 4% 22% 17% 10% 67% 79% 90% FY17 FY18 FY19

($mm)

High Medium Low

Greater Mix of Med and Low Budget Films Exponential Growth in Eros Now Paid Subs.

2.1 7.9 18.8 FY17 FY18 FY19

Total Paying Subscribers(1) (#mm)

Growth fr from Su Successful Execution of f Renewed St Strategy

SLIDE 35

Dis iscl claimer

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 in August 2019 (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

ur 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.