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 changes that transpired in 40 years will now happen in the next 10 years
Entertainment in 2030
IOT will leverage Projection Tech IOT wherein each Digital AR/VR & device will be a Humans Immersive Video smart device Voice Based Interactions
Glocal is the only way to go? ‘The Eros Story’
INDIA’S NUMERO UNO STUDIO 5mn+ Paid subscribers of Eros Now (Dec-2017) 2018 80mm+ registered users on Eros Now (Dec-2017) 2017 In-House Production / Co- Eros Now official 15.9mn+ Eros now paid Production marketing launch subscribers (Dec-2018) (Jul-2015) Eros Now registered users 2016 over 142mn) Investment from Reliance SVOD agreement Industries 2015 with Launch of Channel 2010 – Expanded distribution Established global 2014 partnerships in India distribution + Overseas network outside 2007 – India 2008 Global Early adopter of Distribution 2006 VHS distribution 1982 – Launched Digital 1998 distribution channels: 1981 1977 Listed EIML 100,000+ on the Audio First Indian media Tracks company to list on Listed Eros Founded; began AIM Launch of first PLC on (2) acquiring Adoption of vertically digital international IP rights integrated mode Bollywood TV Announced Techzone for Indian content network ( ¹ ) acquisition 3,000+ Pioneer and Innovator in Indian Film with 40+ year track record Film Library
PREMIUM CONTENT LIBRARY Premiu ium Content Lib ibrary ry • Hindi • Regional New Film Mix 40 – 50 Films Each Co-Production Acquisition Language Year • International Agreements 3,000+ Film Library Digital Premiere Window 12,000+ Digital Film Rights 100+ Originals over next 18 months 5,000+ into Perpetuity 4,400 Short-form Videos Released Jan 1 Filmfare 12 IIFA 1 IIFA 1 TOIFA 1 TOIFA 1 IIFA 9 IIFA Awards 2018 Award Awards Award Award Award Award Deep and rich content library – underpinned by long-term rights to premium content
41% Market Share of Indian Films on an OTT Service Indian Film OTT Library by Platform 2% 1% 6% 3% 3% 7% 4% 12% 21% 12% 2% 10% 22% 22% 1% 32% 39% 1% 12% 10% 14% 31% 10% 16% 16% 16% 6% 11% 10% 19% 1% 11% 19% 5% 16% 7% 5% 65% 41% 20% 15% 5% 18% % of Total OTT Library 1
Over the last 10 years Eros has been responsible for 36 of the top 110 highest grossing box office films in India
EROS’ FILMS STRATEGY
PREMIUM STORIES GLOBAL High Quality Programming that Content Driven Projects rather Push Boundaries to ensure is able to drive immersive than Talent Driven Films travel International experiences
The STUDIO BUSINESS DOMESTIC INTERNTAIONAL CO-PRODUCTIONS AIRLINES TELEVISION MUSIC
CROSSING BORDERS & 50 Other Countries.
Upcoming Blockbusters
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 opportunity for a global ‘digital’ play that was local
WITH A CAPABILITY TO SERVE 2B+ AUDIENCES WORLDWIDE
WAS BORN 7 YEARS LATER
STATUS NOW 35% 186.9M 26.2M 150 registered users monthly paying countries subscribers 65% 43.13% 36.97% 12.58% Users Male Female Age Group 18-24 25-34 35-44
LOCALIZED CONTENT STRATEGY FILMS ORIGINALS QUICKIES SHORT FILMS
DISTRIBUTION WITH 60 PARTNERS ACROSS THE WORLD
35+ MAJOR BRAND PARTNERS WITH RECURRING CONSUMPTION
WE DID IT FIRST! Exclusive Movie Premieres only Original Series Showcase at MIPCOM on EROS NOW 2018
TECHNOLOGY • Personalization & Recommendation – optimized curation • Optimized delivery • Sub-titles
2019 WAS A FABULOUS YEAR FOR EROS NOW Announced the biggest technology Only Non-US brand to be launched Joint bundling of Eros Now + partnership with Microsoft with Apple+ YouTube (Google) for INR 99/- 3 months First Indian brand to present Dolby Targeting the Indian Villages in Atmos and Vision on SVOD partnership with Veriown
Onwards and Upwards Future
A PRIME PILLAR FOR GROWTH WILL BE TECHNOLOGY
FROM A MASS ENTERTAIMENT SERVICE TO BECOME A NETWORK
EROS NOW TO FURTHER EXPAND SUB BRANDS by 2021
Conservativ ive Bala lance Sheet Select Balance Sheet Items Strong Liquidity Profile – Cash Balance ($mm) ($mm) 31-Dec-19 Total Cash & Cash Equivalents $44.9 258 315 303 270 277 221 212 221 281 294 Gross Debt (2) $221.2 Net Debt $176.3 154 88 112 136 183 45 Shareholders’ Equity (Book value) 145 $723.4 81 99 Total Capitalization (Book value) $944.6 189 176 161 158 145 140 120 113 113 LTM Adj. EBITDA $61.4 Net Debt / LTM Adj. EBITDA 2.87x FY14 FY15 FY16 FY17 FY18 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Gross Debt Net Debt Cash Total Debt / Total Capitalization 23.42% Declining Leverage Current Debt Facilities Inde ndebtedness as on Dec 31 31, 20 2019 19 4.8x 4.3x Senior Convertible Notes 40.8 3.6x 3.5x 3.2x 3.1x Retail Bond 66.3 2.8x 2.7x 2.3x Term Loans 22.7 2.9x 2.8x 2.4x Working Capital Loans 91.9 1.7x 1.6x 1.5x 1.5x 1.4x 1.4x Unamortized Cost (0.5) FY14 FY15 FY16 FY17 FY18 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Gros oss Debt 221.2 22 1.2 Gross Debt / Adj. EBITDA Net Debt / Adj. EBITDA
Growth fr from Su Successful Execution of f Renewed St Strategy Exponential Growth in Eros Now Paid Subs. Revenue Growth Declining Net Debt ($mm) ($mm) Total Paying Subscribers (1) (#mm) 18.8 189 158 145 270 261 253 7.9 2.1 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 Adj. EBITDA Growth Declining Receivable Days Greater Mix of Med and Low Budget Films ($mm) (#days) ($mm) 104 367 355 83 297 67% 79% 56 90% 22% 17% 11% 10% 4% FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 High Medium Low (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.
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