UTV Software Communications Limited
Antique Media and Entertainment Conference, Mumbai
January 6, 2009
InteractiveMovies Television Broadcasting New Media
2
UTV business segments
TV Content Broadcasting GamingMovies New Media
� Hindi
� Regional movies
� Hollywood
� Animation
� Slate of over 45 movies
� Worldwide distribution
� Full Studio Model
� Own TV Content Production
� Content Production Joint Ventures
� Sponsored Blocks
� Console
� Mobile
� Online
� Publisher +IP Creators
� Worldwide market
� Network of the future
� 3 strong segments
�Youth
�Movies
�Business
� Web/Mobile integral part
� Own distribution network
� Worldwide Syndication
Strategy
Stay consolidated to have value creation across all 5 verticals in one Company for aligned shareholder interest…
� Internet
� Digital
� Mobile
� Segments
�Music
�Entertainment
�Business
�Technology
� Portals
� UTVi.com
� Bindass.com
�utvatplay.com
3
� 9 Months FY09 revenue of Rs. 4,681 mn, up by 86% yoy
� Positioned as one of leading and fastest growing Media and Entertainment
company in India – One of the top 5 companies in terms of scale
� Growth possible due to diversified yet synergistic business model
� Unique positioning as compared with most of the diversified Companies
focused on Broadcasting model - Content + Distribution + IP + Platform
� A Unique play in this part of the world
� Promoter interests fully aligned in media to this one listed vehicle only
A quick look at this fiscal…
4
UTV Team
Board of Directors
TV Content Motion Pictures Broadcasting Interactive New Media
COOCEO
COO, Spotboy
COO, Development
COO, Development
ED/CEO
CEO Bindass
COO, Movie channels
CEO
MD, Ignition
MD, Indiagames
CEO
CEO
Disney - 3Promoters - 3Independent - 6
Group CFO
CEO, True Games
Employee strength of 1,000 across all five verticals
5
Result Summary
Achieved almost 100% of
FY08 revenues in 9M FY2009
Rs. Millions FY2008 9M FY2009
Revenues 4,342 4,251
- TV 1,006 1,013
- Movies 2,424 1,887 - Games Content 956 707
- New Media - 143
- Broadcasting - 548
Less: Inter segment (44) (47)
FY08 9M FY09
Segment Result 829 312 19% 7% - TV 180 45 18% 4% - Movies 556 543 23% 29% - Games Content 93 (48) 10% -7% - New Media - (27) 0% -19% - Broadcasting - (200) 0% -37%
PAT 777 878
Net Margins 18% 21%
Capital Employed 7,270 16,514
- TV 342 401
- Movies 4,465 8,248
- Games Content 1,093 2,712
- New Media - 349
- Broadcasting - 3,135
- Unallocable 1,369 1,669
* FY2008 numbers are audited
EBITDA Margins
6
Results Comparison
Consistent growth reported Y-o-Y
571
91
735
176
1,244
231
1,947
271
1,452
251
1,786
328
1,622
299
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Rs
. M
illio
n
1Q08 2Q08 3Q08 4Q08 1Q09 Q209 Q309
Revenue PAT
FY2008 FY2009
7
What sets us apart
Non replicable
model
Combination of our 5 verticals & its positioning and
partners gives us a 5 year head start for anyone to
replicate at this scale over 5 verticals.
Content Focus Most of the Multi play models are either “Platform” or
“Distribution” OR “Infrastructure” focused; While UTV’s
origin and focus is “Content” first and then owning or
controlling distribution platforms for the Content we Create
or Aggregate.
Intellectual Property IP being created and retained in all our verticals.
Strong value creator for the future and a robust annuity
model.
Top end of the value
chain
Except for TV Content, all our businesses have a direct
connect with the consumer.
8
What sets us apart
Global Footprint In Gaming - World is our market
In Movies - 26 to 30 countries day & date release
In Broadcasting – Migrant Population & Platforms like
IPTV and DTH spread worldwide
In Web & Digital – The world
Leadership Position In all our businesses
Already there OR will be there soon
Growth through
M&A’s
We understand and have a track record which very few
others have and have proven integration and growth of the
same
Global Partner like
Disney
Disney Committed to high growth and value addition in all
5 verticals.
9
� Total investment of Rs 10 billion over a period of 2 years into the
company – largest investment in part of the world
� Not just a financial investment – Disney committed to drive growth,
synergies and significant value addition in all 5 business verticals
� Its evident by ABC News exclusive alliance with UTV News in just 10
days after announcement
� Disney distributed Tare Zameen Par home video in International markets
for UTV
� UTV to exclusively distribute all Disney releases in India
… and this is just the beginning
Disney Connect
10
Some more identified areas of synergies in short term
� Indian Movie co-productions
� Worldwide DVD distribution & TV Syndication of Indian Movies
� Disney/ABC: Best TV Formats; JV for Indian market
� International distribution for our channels
� Combining Disney channels in India on our distribution platform
� Access to their retail and franchise chain in India for Bindass
� Examining synergies in gaming – publishing and distribution of our
original IP
Disney Connect
11
Revenue distribution among verticals
New Media
3%
Gaming
19%
Movies
47%
TV
19%
Broadcasting
12%
New Media
4%
Broadcastin
g
11%
TV
10%
Movies
43%
Gaming
32%
2009E 2010E
Gaming
22%
Movies
55%
TV
23%
2008A
12
Best revenue mix among the media companies in India
Revenue Streams Contribution
1 Advertising (A&S and Broadcasting) 18%
2 Box Office 18%
3 Home Video & Music sales 8%
4 Broadcasters (TV Content & Movie syndication) 35%
5 Telcos (Gaming) 10%
6 Retail (Gaming) 11%
13
Shareholding Structure
Promoters
23.3%
Open offer
22.7%
Public
16.7%
Disney
37.3%
Promoters
32.3%
Open Offer
20.0%
Public
14.8%
Disney
32.9%
Eq. Share – 34.2 million
(Pre Warrants Conversion)
Eq. Share – 38.7 million
(Post Warrants Conversion**)
Key Shareholders
Notes:
1. Warrants conversion expected by November 2009
2. Open Offer shares are non-voting shares, Promoters have an option to buy back from Disney within 4 year period
Market Cap on expanded equity is around Rs. 9.5 billion
�The Walt Disney Company � DSP Blackrock �Reliance Capital
� Fidelity � Alliance Bernstein �Templeton
14
Television
� Air Time Sales
� We remain largest on the Sun Group
� Complementing model with our own productions
� Boost TV content portfolio
� Content in reality and Comedy genre – achieved significant QoQ growth
� Preferred programmer on our broadcasting network
� JVs with well known talent in TV industry
A very stable model positioned as one of the Top 2 players in the
space
15
UTV Motion Pictures
� Positioned as # 1 studio in the Industry today
� Best positioned to ride the downturn with as many as 45 movie
pipeline in various stages of production
� Proven abilities to distribute movies across over 32 countries day
and date
� Multiple movie talent relationships with renowned directors and
actors
� Our core competence:
� Talent identification and then empower them
� Content – Cutting edge yet very commercial
� Marketing – very innovative
� Scale & consistency
16
Movie release and pipeline
� Movies released during FY2009 - Kismat Konnection, Aamir, Mumbai Meri Jaan,
Wednesday, Welcome to Sajjanpur, Fashion, Oye Lucky Lucky Oye, Dev D
� Upcoming slate for next 12 months
Name of Movies Exp Release Director / Cast
Dev D Q4 FY09 Abhay Deol, Introducing Mahi Gill & Kalki
Delhi 6 Q4 FY09 Abhishek Bachchan, Sonam Kapoor -dir. by Rakeysh Mehra
Dhoondte Reh Jaaoge Q4 FY09 Kunal Khemu, Zayed Khan, Soha Ali Khan, Celina Jaitley,
Kissan Q1 FY10 Sohail Khan, Arbaaz Khan, Jackie Shroff, Dia Mirza
Main aur Mrs. Khanna Q1 FY10 Salman Khan, Kareena Kapoor, Sohail Khan
Kaminay Q1 FY10 Shahid Kapoor, Priyanka Chopra
Yahoo Q1 FY10 Shahid Kapoor
Ali Baba & the 41 thieves Q1 FY10 Animation film directed by Soumitro Ranade
What's your Rashee? Q2 FY10 Priyanka Chopra, Harman Baweja
Aage se Right Q2 FY10 Shreyas Talpade, KK Menon
Peter Gaya Kaam Se Q2 FY10 Rajeev Khandelwal
Rajniti Q3 FY10 Ranbir Kapoor, Ajay Devgan, Katrina Kaif
Pan Singh Tomar Q3 FY10 Irrfan Khan
Seasons Greetings Q3 FY10 Shreyas Talpade, Tabu, Sohail Khan
Delhi Belly Q3 FY10 Co-produced with Aamir Khan with ensemble cast
17
Broadcasting
� The best “Specialty” and “Genre” segment in India
� – No 1 Hollywood channel
� – No 1 Youth channel
� – Unique positioning
� – Synergistic with UTV Motion Pictures
� Only bouquet to have pay channels from day one (excluding established Star,
Zee & Sony)
� Robust syndication model – in Content & taking Channels worldwide
18
Broadcasting – Going forward
� Focus on Digital & Pay market - 1 channel in ONLY digital mode
� Re-modeled investment plan
� Down from Rs. 650-700 crs to Rs 460 crs
� Rs. 360 crs already invested (UTV – Rs. 240 crs & Disney – Rs. 120 crs)
and
� Additional Rs. 100 crs
� Loss projection scaled down
� FY2009 (8 months): From Rs. 50 crs to Rs. 30-32 crs
� FY2010 (12 months): From Rs. 75 crs to Rs. 30 crs
19
� Presence across all gaming distribution Platforms
� Console (Ignition)
� Mobile (Indiagames)
� Online (True Games)
� Key markets
� For consoles: USA/ UK+EU/ Japan
� For mobile: USA/ India/ APAC
� For online: USA/ emerging markets (Brazil, Turkey, etc.)
� Activities
� Original IP Creation
� Acquisition and publishing of IP
� IP creation hubs currently in London, Florida, Mumbai and Tokyo
� We are multiplatform and have 3 large IP’s under production in console gaming and
three in True Games
� Business growing rapidly despite the current business environment – Indiagames
reported a Q-on-Q growth of 20% in Q3FY09
Games Content
20
� Presence across all new media distribution platforms – Web & mobile
� Strong verticals
� Business - UTVi.com
� Technology - ITNation
� Entertainment (UTV’s broadcast + movie assets) and (Acquisition of
15,000 songs including regional catalogues) – launching shortly
� Distribution & Alliances with telco’s worldwide
� Formidable presence from year 1 due to synergy with all our
Content + Distribution pipelines + Channels
� Recent releases like Jodha Akbar and Singh is Kinng has been
monetised well through this platform
New Media – Web/ Mobile
21
Outlook
� UTV is best positioned to survive this “storm” as compared to its
peers
� Low dependence on the advertising revenues reduces potential
impact
� Well diversified business portfolio - Leadership position in each
segment is the objective
� Geographic diversification – more than 30% revenues from
overseas markets in FY10
� Engrained synergies with global partners / shareholders
� Constantly evaluating value unlocking opportunities across verticals
22
Thank You
23
Corporate Structure - Appendix
UTV Software Comm. Limited
UMP Plc IG Interactive
Ent Ltd
UTV Comm, Mauritius
Ignition Ent, UK
Indiagames Ltd
UTV Global Broadcasting
GENX
UTV Entertainment Television
100% 75%
59%
70%
77%
United New media Ventures
Ltd
100%
100%
ITNation Media Pvt. Ltd
76%
UTV Television
100%
100%
100%
UTV Games Mauritius
100%
True Games Ltd
80%