Corporate presentation July, 2017 Fiscal Year End 2017
1 Eros the leading Indian film studio
Executive Summary Eros: a media company transforming into a digital company 1 A global leader in Indian film entertainment with strong box office market share 2 Strong revenue growth and solid track record of profitability 3 ErosNow strategically positioned to capture large digital opportunity in India 4 Robust India macro landscape with highly attractive fundamentals 5 Large content library of Indian language films, 3,000+, and music PAGE 2
Content is King • Hindi New film mix • Regional Trinity language Acquisition Co-production 45-65 films Pictures • International each year agreements Digital premiere window 3,000+ film library (1 year after Theatrical Release) PAGE 3
Eros: A Multi-Platform Model l Leading player in a growing and underpenetrated cinema market Theatrical Eros had two, seven and four films of the top fifteen grossing films in India, in CY2016, 2015 and 2014 Film pre-sales facilitated by long-standing Eros brand, reputation and industry relationships l Cable digitisation and rising Pay TV penetration drive market growth and demand for premium content Television Eros’ film library of over 3,000+ films is a stable source of revenue growth with high margins l India is projected to have over c. 1 billion internet users by 2021 Digital and ErosNow, with over 68m registered users globally, is the leading digital Indian content platform Ancillary Exclusive content provides high barrier to entry We are strategically positioned as a leader in our segments and able to monetise through multiple channels globally $ Theatrical TV Syndication Freemium Pay Per View Subscription Advertising Bundled Services PAGE 4
Leading Box Office Market Share Blockbuster film slate – two, seven and four of the top fifteen grossing films in India, in CY2016, 2015 and 2014 respectively 1 US & UK Market Share CY 2011-2016 2 USA & UK Others, 23% • Last 6 years average market share of Eros, 31% 31% in UK and US, of all theatrically released Indian language films Fox, 7% • Note Eros’ leading position but also fragmentation of rest of the market Reliance, 8% UTV, 20% YRF, 11% (1) As per www.bollywoodhungama.com (2) Represents average market share of all theatrically released Indian language films from 2011 - 2016. Source: comScore. PAGE 5
Diversified, Strong Revenue Growth Revenue Mix by Channel – FY 2017 Strong Historical Revenue Growth USD mn Digital & ancillary, 25% Theatrical, 284 274 40% 253 236 215 207 165 156 150 113 Television 66 syndication, 35% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Solid Track Record of Profitability Revenue Mix by Geography – FY 2017 USD mn 101 80 Rest of the 71 India, 51% World, 49% 67 60 56 56 54 54 48 33 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 A.EBITDA 50% 43% 35% 36% 36% 32% 26% 34% 36% 26% 22% Margin PAGE 6
Eros Theatrical Production Film by (1) FY’ 09 FY ‘10 FY ‘11 FY ‘12 FY ‘13 FY ‘14 FY ‘15 FY ‘16 FY ‘17 budget type High 2 3 3 5 6 4 6 6 5 Medium 13 11 10 5 13 21 12 16 10 Low 76 97 64 67 58 44 47 41 30 (2) Total films 91 111 77 77 77 69 65 63 45 Strong releases YTD set to be bolstered by additional highly anticipated titles in the coming years “High budget” films refer to Hindi films with direct production costs in excess of $8.5 million and Tamil as well as Telugu films with direct production costs in excess of $7.0 million; “Low budget” films refer to both Hindi, Tamil, and Telugu (1) films with less than $1.0 million in direct production costs; “Medium budget” films refer to Hindi, Tamil, and Telugu films within the remaining range of direct production costs Total films includes regional films and films with overseas rights (2) PAGE 7
2 Our markets
Indian Media & Entertainment Market Media & Entertainment Market Projected to Grow at 14% (1) USD bn 38 ’16 – ’21 CAGR 16.2% 5 33 4 29 30.8% 5 25 4 4 3 7.7% 22 3 3 3 7.3% 20 7 3 2 3 6 2 2 3 1 6 2 2 5 5 5 14.7% 18 16 14 12 10 9 2016A 2017E 2018E 2019E 2020E 2021E (2) Television Print Film Digital Ad Other (1) Source: FICCI-KPMG Report. Rupees converted to USD at 64.5 (2) “Other” includes radio, music, out of home, animation & VFX and gaming PAGE 9
India: High Growth and Attractive Fundamentals A rapidly growing economy… (1) With significant population expansion (in billions) 1.6 7.2% 6.6% 1.2 1 2.3% 2.0% 0.2% India China US UK Brazil 2000 2011 2050 Increasing annual disposable income (3) Highly favorable demographics (2) Median age 39.3 37.1 $2,027 $1,887 31.6 $1,753 $1,620 $1,559 27.6 2012 2013 2014 2015 2016 Russia China Brazil India Over the next 15 years India is expected to be the largest contributor of global GDP growth. (1) IMF World Economic Outlook as of April 2017 (2) CIA World Factbook (8/2/2017) (3) Euromonitor International PAGE 10
Rapid Growth for India’s Film Industry Theatres seeing consistent YoY revenue growth… (1) …with multiplex rollout fuelling growth… (2) (in thousands) Multiplexes in India Indian Domestic Theatrical Revenue USD bn 4.6 2.2 2.1 1.9 3.5 1.8 1.6 1.5 2.7 1.4 1.2 2.1 1.6 1.2 2016A 2017E 2018E 2019E 2020E 2021E 2011 2012 2013 2014E 2015E 2016E 2017E 2018E …in a highly underpenetrated market… (3) …with substantial room to increase pricing (4) Theatre screens per million population ($ in USD) Average Admissions Price 126 15.7 85 9.7 7.9 61 7 57 6 4.7 2.9 23 6 India China Brazil Russia US UK Japan India Germany UK France US China (1) FICCI-KPMG Report; Rupees converted to USD at 64.5 (2) CRISIL Research (3) FICCI-KPMG Reports (4) Magna Global, June 2014, India ticket price represents average ticket price at two leading multiplex chains as on March 2017. PAGE 11
Growing Indian Television Market Increasing television household penetration… (1) …is expected to fuel growth in the Indian TV industry (1) USD bn Paid C&S TV Household Penetration (%) Revenue Growth 84% 6.1 81% 3.1 12.0 6.0 2016A 2021E Total # of 2016A 2021E TV 181m 203m Households: Subscription Revenue Advertisement Revenue Willingness to pay for content… (1) ...is supported by favorable viewing preferences (1) Percentage of viewing time spent Paid C&S TV Household (in millions) 45% 42% 36% 70+% 164 22% 12% 147 11% 7% 7% Hindi GEC + Regional GEC Kids + Music News 2016A 2021E Movies + Movies (1) Source: FICCI-KPMG Reports. PAGE 12
International markets China Rest of the world Global demand for Bollywood content , especially in 49% $6.3 Billion n Europe and Southeast Asia 2014-2015 growth Large South Asian Diaspora Chinese Movie Market n Arrangement with local distributors across the global to n target theatrical, TV and DVD releases 32,000 8,035 Already well established in Germany, Russia, China, n Japan, Korea, Taiwan, Indonesia Total Screens in 2015 Screens added in 2014 Influential partnerships secured in China Partnerships with three major Chinese state-owned film and entertainment companies to promote, co-produce and distribute Sino-Indian films across all platforms in India & China Trinity Pictures and China studios collaboration In a first for an Indian studio, 2 films created and Shanghai Film China Film Group produced by our in-house studio, Trinity Pictures, set Group Fudan University Corporation Corporation in India and China, will be co-produced along with a ü Large and growing Chinese Box Office Chinese studio and will be shot in both languages. ü Partnering with the best Chinese film companies ü High-reward long-term opportunity Source: Eros International Press Release PAGE 13
Trinity Pictures – Building franchises and not just films Trinity Writers Room has completed development on 20 other franchises and some of them are being actively pitched to Directors Out of these twenty franchises, five are lined up in the next couple of years: A live action tri-lingual (Hindi, Telugu and Tamil) elephant film to be directed by multiple o award-winning Tamil director, Prabhu Solomon Ace director Krish’s buddy cop film which will be shot in Hindi and Tamil simultaneously, o featuring popular lead actors from both South India and the Hindi film industry Two Indo-China co-productions; Kabir Khan’s travel drama & Siddharth Anand’s o cross-cultural romantic comedy, Love in Beijing An action thriller to be directed by Vipul Amrutlal Shah o Trinity’s first franchise film Sniff – I Spy , a superhero film directed by Amole Gupte is slated for release in FY 2018 Two editions of Sniff comics have already been released along with iconic Chacha o Choudhary comics Sniff mobile games and video games will also hit the markets following the movie’s o release Merchandizing and animation series are also being prepared o 14 PAGE 14
3 A digital transformation
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