AN OVERVIEW OF INDIA S LEADING MEDIA & ENTERTAINMENT COMPANY MAY 2009 1
DISCLAIMER Some of the statements made in this presentation are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the directors and management of Zee Entertainment Enterprises Limited about its business and the industry and markets in which it operates. These forward-looking statements include, without limitation, statements relating to revenues and earnings. The words believe, anticipate, expect, estimate, intend, project and similar expressions are also intended to identify forward looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of the Company and are difficult to predict. Consequently, actual results could differ materially from those expressed or forecast in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks. Zee Entertainment Enterprises Limited does not undertake to update these forward-looking statements to reflect events or circumstances that may arise after publication. 2
INDIA S LEADING MEDIA & ENTERTAINMENT COMPANY Pioneer of television entertainment in the country Compelling for our customers - presence across all genres A large market for Zee-Indian company with a global consumer base Diversified revenue streams, advertising and subscription Financial value to shareholders Zee is uniquely equipped 3
PRESENCE ACROSS GENRES 4
DIVERSIFIED PRODUCT OFFERING ENTERTAINMENT 5
DIVERSIFIED PRODUCT OFFERING INTERNATIONAL SPORTS MOVIES 6
NETWORK VIEWERSHIP TRENDS- LEADERS IN INDIA 20 Star 19.2 15 Sun 19.0 Zee 14.4 16.6 16.0 14.5 15.1 15.1 14.7 Zee Star 12.2 12.2 Sun 10 5 Sony 7.2 7.6 7.6 7.1 TV 18 Sony TV 18 0 0.9 2005 2006 2007 2008 2009 1.9 Source: TAM Media Research, All Universe, All Markets of India, Total Network Cumulative Average Weekly Channel Shares 7
GENREWISE SHARE- STEADY PERFORMANCE Hindi General Entertainment Zee TV (Market Share: 19%) Hindi Movies Zee Cinema, Zee Premiere, Zee Action, Zee Classic (Market Share: 36%) Sports Ten Sports, Zee Sports (Market Share: 29%) English Entertainment Zee Café, Zee Studio, Zee Trendz (Market Share: 22%) Music ETC, Zing, ETC Punjabi (Market Share: 12%) Spiritual/ Lifestyle Zee Jagran (Market Share: 27%) Source: TAM Media Research Period: Q4 FY 2009 TG: Genrewise Relevant TGs & Markets 8
ENTERTAINMENT BUSINESS- KEY LAUNCHES IN RECENT PAST 9
ENTERTAINMENT BUSINESS- KEY LAUNCHES IN RECENT PAST 10
ENTERTAINMENT BUSINESS- KEY LAUNCHES IN RECENT PAST 11
ENTERTAINMENT BUSINESS- RECENT HIGHLIGHTS Zee TV Steady improvement in ratings month on month through Q4 FY09 Zee Cinema Leader in its genre & ranks fourth in all channels across the Hindi Speaking Market Zee Café Latest current series programming of super-hit shows Zee Studio Tie ups with leading studios world-over Zee Music/ Zing Zee Music has been re-branded as Zing Zing content to revolve around the world of music, movies & celebs 12
SPORTS BUSINESS- KEY PROPERTIES 13
SPORTS BUSINESS- RECENT HIGHLIGHTS 4 year telecast rights to five of the ten test playing nation s cricket boards Rights ensure coverage of cricket of all test playing countries Over hundred days of cricket per year Exciting properties such as UEFA cup football, WWE wrestling, US Open tennis etc tied up Channels continue to bring strength to network subscription bouquet Sports business contributed 18% of company top line in FY09 14
MOVIE BUSINESS- ZEE ENTERTAINMENT STUDIOS 15
PRESENCE ACROSS 167 COUNTRIES, REACHING 500 MILLION HOMES Americas Paying Subs: 575,000 Middle East Paying Subs: 2.6 Mn. Europe Paying Subs: 200,000 South East Asia Paying Subs: 4.5 Mn. Africa Paying Subs: 250,000 16
INTERNATIONAL BUSINESS- RECENT HIGHLIGHTS Presence across 5 continents through over 15 channels Catering to both South Asian as well as non South Asian communities Recent local language launches in Russia, Indonesia, Malaysia, Saudi Arabia (TV channels) Primarily a subscription based model, with a renewed focus on advertising as a source of revenues International subscription contributed 21% of company top line in FY09 17
RECENT TRENDS 18
NEW CHANNELS EXPANDING MAINLINE VIEWERSHIP 1250 GRPs 1150 1145 July- Aug 2008 1050 1000 1012 950 925 Jan 2008 May 2008 850 889 Sept- Oct 2007 Nov 2007 Pre 9X 9X Launch NDTV Imagine Launch IPL Colors Launch Source: TAM Media Research, All Universe, Hindi Speaking Markets of India, GEC Channels Cumulative Average Weekly GRPs 19
PRIMETIME VIEWERSHIP TRENDS- ZEE TV CONSISTENT AVERAGE PRIMETIME VIEWERSHIP TRENDS OF HINDI GEC 5 4 3 2 1 0 Star Plus Zee TV Colors Sony Star One NDTV Imagine Sahara One 9X SAB Star Utsav 2005 2006 2007 2008 Source: TAM Media Research, All Universe, Hindi Speaking Markets of India, Prime Time Ratings 1800 hrs- 2400 hrs 20
ZEE TV VIEWERSHIP GROWS WITH EVERY NEW LAUNCH 240 GRPs Launch of Agle Janam Mohe Bitiya Hi Kijo 229 Launch of Dance India Dance 213 204 206 200 201 Q3 Average (Ex Strike) Jan-09 Feb-09 Mar-09 Apr-09 Source: TAM Media Research, All Universe, Hindi Speaking Markets of India, GEC Channels Cumulative Average Weekly GRPs 21
DIVERSIFIED REVENUE STREAM 22
EQUAL EMPHASIS ON ADVERTISING AND SUBSCRIPTION Domestic Cable 15% DTH 5% International 21% Advertising 49% Other Sales 10% FY 2009 Total Revenue: Rs 21.73 Bn. Advertising Subscription Syndication & Movies 23
SEGMENT WISE GROWTH IN FY 2009 12 10.6 14% 10 9.3 8 6 4 2 2.8 3.4 20% 0.6 1.2 93% 3.9 4.5 14% 1.7 2.1 25% 0 Advertising Domestic Cable DTH International Other Sales All Figures in Rs Billion FY 2008 FY 2009 YoY Growth % 24
FY 2009 RESULTS OVERVIEW 4Q FY09 % Growth YoY FY09 Advertising 2,284 (7%) 10,618 14% % Growth YoY Subscription 2,345 13% 9,014 23% Total Revenues 5,137 (2%) 21,730 18% EBITDA 1,202 (8%) 5,332 (1%) PAT (pre exceptional) 903 (16%) 3,740 (6%) PAT 968 (7%) 5,197 31% All Figures in Rs Million; Growth Calculated over FY08 25
CONSISTENT PERFORMANCE 21.7 18.4 16.5 15.2 13.3 4.35 2.7 3.2 5.4 5.3 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 All Figures in Rs Billion Revenue EBITDA 26
BUSINESS OUTLOOK 27
ADVERTISING INDUSTRY GROWTH PROJECTIONS IN CY 2009 11% 9% 8% 7% 7% 7% 6% 2% 0% Total Ad Revenue Growth (%) TV Ad Revenue Growth (%) Print Ad Revenue Growth (%) YoY growth percentages for CY 2009 over CY 2008 Group M Madison Media KPMG FICCI 28
DISTRIBUTION PLATFORMS GROWTH PROJECTIONS FY 09 63 13 FY 10 E FY 11 E 64 24 66 34 Digital Households CAGR at 49% FY 12 E 67 43 Analogue Cable Total No of Households in million; Source: Industry Estimates Digital Households 29
ZEEL INVESTMENT HIGHLIGHTS INDIA S LEADING MEDIA & ENTERTAINMENT COMPANY Leading player in television broadcasting and syndication of content overseas Well established reach both in India and overseas With addressability coming in India, subscription revenues expected to grow incrementally in coming years Continued out-performance of industry ad revenue growth Best positioned to exploit evolving industry dynamics and to develop newer opportunities across platforms and media 30
THANK YOU 31