Television Movies Games Broadcasting New Media UTV Software Communications Limited Merrill Conference, Delhi February 09, 2010
Disclaimer As described in a scheme document dated 15 September 2009, UTV Software Communications Limited ("UTV") has made a proposal (the "Proposal") pursuant to which (by means of schemes of arrangement under the laws of the Isle of Man and India): the holders of the shares in UTV's subsidiary, UMP Plc (admitted to trading on AIM), not already owned by UTV (representing approximately 23.18 per cent. of the entire issued ordinary share capital of UMP) will, for every 3.75 UMP Shares, receive 1 New UTV Share; all the assets and business of UMP will be transferred to UTV; and UMP will be dissolved (without winding up). For the purposes of the Proposal only, the directors of UTV, whose names are set out in paragraph 2.2 of Part Ten of the Scheme Document (the "UTV Directors"), each accept responsibility for the information in this presentation and to the best of the knowledge and belief of the UTV Directors (who have taken all reasonable care to ensure that such is the case), such information is in accordance with the facts and does not omit anything likely to affect the import of such information. This presentation contains certain forward looking statements concerning UTV Software Communications Limited's and its subsidiaries' future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and globally, our ability to manage our international operations, government policies, fiscal deficits, regulations, etc. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company. No part of this presentation shall be reproduced, copied, forwarded to any third party either in print of in electronic form without prior express consent of the company. This presentation does not constitute an offer to sell or the solicitation of an offer to purchase or subscribe for any securities of UTV Software Communications Ltd. (the “Company”) in any jurisdiction including India and the United States. No part of this presentation should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities of the Company. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company and will contain detailed information about the Company, its management and its financial statements. None of the Company’s securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration therefrom.
UTV | Diversified Business Model New Media TV Content Movies Gaming Broadcasting � � Integrated Studio � Growing presence � Internet and mobile � Fastest growing One of the pioneers in Indian TV content Model content and distribution network with focus � Console production on youth & movies � Hindi � Innovative offerings - � Online � Airtime sales � 4 specialty channels Audio Cinema –on mobile � Regional � Mobile largely focused on � � Portals: Multi-genre and � Hollywood � IP Creation youth multi-linguistic � Techtree.com � Worldwide � Game Publishing presence � Own distribution � Channeltimes.com distribution network & Worldwide � � Global market Licensed formats to � CXOToday.com Syndication global networks Demonstrated Fastest growing TV 360 0 Presence Leading player I nnovative offerings Network 1 Leadership Demonstrated ability to successfully grow each vertical 1 Source: TAM, CS 4+ , week 15- week 40, 2009 2
UTV Business Model | Built Scale and Diversified Diversified Revenue streams Revenue break up- 9MFY10 Over 85% of FY09 revenues achieved in 9M (Rs mn) FY10 7,000 New Media, 6,000 2% TV Content, 14% 5,000 4,000 Movies, 3,000 Broadcasting, 48% 20% 2,000 1,000 - Games FY07 FY08 FY09 9MFY10 Content, TV Movies 16% Games Content / Allied Services New media Broadcasting 3
Movies | New growth avenues I ndian Film I ndustry is Rs 109.3 bn (USD 2.2 bn 1 ) opportunity, has grown at 17.7% CAGR over last 3 years 109.29 96.36 81.66 66.95 2005 2006 2007 2008 Source: FICCI-KPMG Media & Entertainment Industry Report, 2009 Emergence of new exploitation platforms to drive growth … evident from the share of non theatrical revenues for UTV Other � Strong projected growth in multiplex screens ancillary Satellite 1% from 850 screens in 2009 to projected 1405 23% screens nationwide in 2013 Domestic � ~ 1,800 digital screens Theatrical Home Video � 47% DTH subscriber base in India estimated to grow 8% from 10 mn in 2008 to 28 mn in 2013 Music � India has ~ 471 mn mobile subscribers in Sep 11% Overseas 2009, with ~ 15 mn added every month Theatre 10% Source: FICCI-KPMG Media & Entertainment Industry Report, 2009, TRAI Source: UTV Actuals – Films released in FY09 – excludes distribution & Hollywood 1 USD/ INR - 50 4
Movies | Demonstrated Scale I nvestments reflected in size of library and slate UTV adopts low risk business model Rs mn ($ mn) 1 FY06 FY07 FY08 FY09 9M FY10 Full control over product Low Risk cycle – from script to 1,310 721 2,424 2,762 2,649 Revenue Producer distribution (26) (14) (49) (55) (53) Movies Released* 3 5 7 12 9 Acquisitions do not allow Moderate Risk control over production Financier Cumulative movies 8 13 20 32 41 released Rights acquisitions plus Outstanding slate of movies distribution = max. 52 High Risk Distributor risk in the value chain * Excludes movies purely distributed 1 USD/ INR - 50 5
Strong Movie Pipeline Name Est. Release Description / Director / Star cast 1 Peter Gaya Kaam Se Q4 FY10 Rajeev Khandelwal 2 Paan Singh Tomar FY11 I rrfan Khan 3 Rajneeti FY11 Ranbir Kapoor, Katrina Kaif, Prakash Jha 4 Thank You FY11 Akshay Kumar, Katrina Kaif, Anees Bazmee 5 Phillum City FY11 John Abraham 6 Ek Bataa Saat FY11 Vishal Bharadwaj, Priyanka Chopra 7 Guzarish FY11 Hrithik, Aishwarya Rai, Sanjay Bhansali 8 Alibaba FY11 Animation 9 Arjun FY11 Animation 10 Chillar Party FY11 Kids Movie 11 The Falling FY11 Aamir Khan Co-Production 12 Delhi Belly FY11 I mran Khan/ Co-Production Aamir Khan 13 No One Killed Jessica FY11 Rani Mukherji, Vidya Balan 6
Gaming | 360 0 Presence Console Gaming Mobile Gaming Online Gaming ( Industry size : $ 26.4 bn 1 ) ( Industry size : $ 2 bn 1,2 ) ( Industry size : $ 3 bn 1,3 ) � � � UK based console gaming India based mobile gaming US based startup in PC online company in publishing and IP company gaming- MMOG creation � � One of the market leaders in Model based on Free-to-play, � Distribution of games on major India Micro transactions console platforms like PS3, � � Relationships with Telcos Core markets: US own platform Xbox 360, Wii worldwide � Worldwide Syndication � Strong product pipeline � Games On Demand offering � 3 MMOGs under development through broadband in India Emerging player in a $ 31.4 bn 4 Industry 1 Figures for 2008; Wedbush: Entertainment Software Publishing and Retail; Industry Report 2009 2 US mobile game downloads market 7 7 3 Subscription online games and game related downloads market 4 Total of Console, mobile and online described in footnote 1, 2 & 3
Console Gaming | Sizeable Market Console Gaming is a $ 26.4 bn industry 3 in 2008 projected Key players in the industry to grow at ~ 8% CAGR over next 3 years Player Market Cap ($ bn) Sales ($ bn) 33.0 5.8 4.2 30.5 ($ bn) 0.8 * 1.4 * 27.4 26.4 0.3 0.8 23.0 15.0 3.0 2007 2008 2009E 2010E 2011E * 1 EUR = 1.5 USD Source: Wedbush: Entertainment Software Publishing and Retail; Industry Report 2009 Source: Company Reports, Market Cap calculated as on 13 th Nov, 2009 � Market expansion on launch of Next Generation (“Next Gen”) consoles (PS3, Xbox 360 & Wii) � PS3 & Xbox 360 account for 52% of Next Gen consoles worldwide 1 � US, Europe & Japan are major markets for video games � US & Europe estimated to account for 87% of global video game market in 2008 2 ~ 25 mn units of Wii sold in US 1 (~ 29 mn units of PS3 & Xbox 360 sold in US 1 ) � Opportunity for boutique publishers who are driven by high-end I Ps 8 8 1 Source: www.vgchatrz.com, as on 24 th October 2009 2 Wedbush: Entertainment Software Publishing and Retail; Industry Report 2009 3 US, Europe & Japan markets
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