Earnings Conference Call

ShemarooEntertainmentLimited
Q4FY16/FY16EarningsPresenta9on
Execu9veSummary
Overview
•  ShemarooEntertainmentLtdisawellestablishedandreputedmediacontenthouseinIndia,withac9vi9es
inContentAcquisi9on,ValueAddi9ontoContentandContentDistribu9on.
•  Thecompanywasco-foundedbyMr.BudhichandMarooasabookcircula9nglibraryin1962,andmovedonto
seMnguponeofIndia’sfirstmovievideocassePerentalbusinessin1979.
•  OvertheyearsShemaroohasbecomeoneofthelargestindependentcontentaggregatorsinIndia,distribu9ngits
contentthroughdifferentexis9ngandemergingmediaplaUormslikeBroadcas9ngchannels,newmediaplaUorms
likemobiles,internetetc,HomeVideo,Inflightentertainmentetc.
•  ThecompanyislistedonbothNSEandBSEandhadamarketcapofapproximately8.1Bnason31stMarch,2016.
Business
•  ShemarooacquirescontentwitheitherPerpetualrights(completeownership)orAggregatedrights(limited
ownership)
•  Thecompanydistributesandmone9zesthiscontentacrossdifferentmediaplaUorms.
•  Thecurrentcontentlibrarystandsataround3,000plus9tles.
NotableContentLibrary
•  PerpetualTitles(Hindi)–AmarAkbarAnthony,Anari,Dil,DiscoDancer,Ishiqiya,KhudaGawah,NamakHalal
•  AggregatedTitles(Hindi)-Mughal-E-Azam,JabWeMet,Don,Anand,Sarfarosh,Shahenshah,TheDirtyPicture
FinancialPerformance
•  TotalIncomeinFY16reportedatINR3,767Mn;3yearCAGRof20%
•  EBITDAinFY16reportedatINR1,115Mn;3yearCAGRof24%
•  NetProfitinFY16reportedatINR521Mn;3yearCAGRof30%
2
AboutShemaroo
• 
Founded in 1962 as a book circula9ng library, today
Shemarooisanestablishedintegratedmediacontenthouse
in India with ac9vi9es across content acquisi9on, value
addi9ontocontentandcontentdistribu9on.
• 
ThecompanyisheadquarteredoutofMumbaiandemploys
over300people.
• 
The Company is one of the largest independent content
aggregatorswithover3,0009tlerightswhichitdistributes
acrossvariousexis9ngandemergingmediaplaUorms.
• 
• 
Iden9fying that movies have the longest shelf life for
televisionandothermediacontent,Shemaroopioneeredthe
movie library syndica9on business by acquiring movie 9tles
fromproducersanddistribu9ngittobroadcastersandother
mediaplaUorms.
TotalRevenueandEBIDTA%(INRMn)
3,247
3,000
27.6%
2,250
1,871
1,500
27.2% 2,654
2,161
3,767
30%
29.6%
27.1%
24.8%
750
20%
-
FY12
FY13
FY14
TotalRevenue
FY15
FY16
EBITDAMargin
PerpetualRights
Shemaroohasgrownmul9foldovertheyearsbydeveloping
excellent rela9onships with producers and also the
broadcas9ng networks, thereby becoming the largest
organizedplayerinahistoricallyfragmentedindustry.
3
Q4/FY16Highlights
4
Q4/FY16KeyFinancialHighlights
Q4-FY16performance(Consolidated):
FY16performance(Consolidated):
•  TotalIncome*:INR1,031mn;18.1%YoY
•  TotalIncome*:INR3,767mn;15.9%YoY
•  EBITDA:INR359mn;33.0%YoY
•  EBITDA:INR1,115mn;26.6%YoY
•  EBITDAMargin:34.82%;389bpsYoY
•  EBITDAMargin:29.60%;247bpsYoY
•  NetProfit:INR164mn;28.1%YoY
•  NetProfit:INR521mn;27.4%YoY
•  NetProfitMargin:15.91%;125bpsYoY
•  NetProfitMargin:13.83%;123bpsYoY
•  DilutedEPS:6.05INR/share
•  DilutedEPS:19.18INR/share
DivisionalBreakup(Standalone):
Q4-FY2016
Q4-FY2015
YOY
Growth
FY2016
FY2015
YOYGrowth
NewMedia
177
115
53.9%
635
373
70.2%
Tradi9onalMedia
855
757
13.0%
3,134
2,874
9.1%
1,032
872
18.4%
3,769
3,247
16.1%
INRMn
IncomefromOpera9ons
* - Includes Other Income
KeyOpera9onalHighlights
•  Crossed1BillionviewsonourflagshipShemarooYouTubechannel
•  100Million+Viewscrossedon‘ShemarooKids’YouTubechannel
•  Crossed1lacSubscriberson‘ShemarooPunjabi’YouTubeChannel
•  SignedafurthercontentdealwithSpuul
•  TataSky‘Ac9veDevo9on’servicelaunchedon25thFeb2016
•  TataSky‘Comedy’servicelaunchedon9thMar2016
•  AcquiredtheSagarikaBengaliAudioCatalogperpetually
KeyOpera9onalHighlights
YouTubeMonthlyViewsGraph9llMarch2016:
Q4FY16ConsolidatedFinancialHighlights
Par9culars(INRMn.)
Q4FY16
1,028
Q3FY16
1,010
Q-o-Q
1.8%
Q4FY15
868
Y-o-Y
18.4%
3
3
0.0%
5
(40.0)%
TotalRevenue
1,031
1,013
1.8%
873
18.1%
TotalExpenses
672
744
(9.7)%
603
11.4%
EBITDA
359
269
33.5%
270
33.0%
34.82%
26.55%
827bps
30.93%
389bps
Deprecia9on
10
9
11.1%
9
11.1%
FinanceCost
72
56
28.6%
52
38.5%
PBT
277
204
35.8%
209
32.5%
Tax
97
72
34.7%
81
19.8%
PAT
Shareofprofit/(loss)in
associatecompany
180
132
36.4%
128
40.6%
-16
-4
NA
0
NA
PATaderadjustments
164
128
28.1%
128
28.1%
15.91%
12.64%
327bps
14.66%
125bps
6.05
4.72
28.2%
5.41
11.8%
RevenuefromOpera9ons
OtherIncome
EBITDAMargin(%)
PATMargin(%)
DilutedEPS
8
FY16ConsolidatedFinancialHighlights
Par9culars(INRMn.)
FY16
FY15
Y-o-Y
3,749
3,234
15.9%
18
13
38.5%
TotalRevenue
3,767
3,247
16.0%
TotalExpenses
2,652
2,366
12.1%
EBITDA
1,115
881
26.6%
29.60%
27.13%
247bps
Deprecia9on
37
37
0.0%
FinanceCost
228
212
7.5%
PBT
850
632
34.5%
Tax
307
222
38.3%
PAT
543
410
32.4%
Shareofprofit/(loss)inassociatecompany
-22
-1
NA
PATaderadjustments
521
409
27.4%
13.83%
12.60%
123bps
19.18
17.35
10.5%
RevenuefromOpera9ons
OtherIncome
EBITDAMargin(%)
PATMargin(%)
DilutedEPS
9
NewMedia
•  ShemaroowasoneofthefirstIndianmediacompaniestosyndicate
its library in the high growth new media plaUorms, thereby gaining
firstmoveradvantage
•  The company caters to all types of revenue models like pay per
transac9on, subscrip9on, adver9sement supported (free to
consumer)etc.
•  Due to its large library ownership Shemaroo has the ability to slice
and dice content and package it in different ways that are more
suitedforthenewmediaplaUorms.
Internet:
•  ShemaroohasagreementswithvariousinternetvideoplaUormslike
YouTube,Hooq,Hotstar,AppleiTunes,GooglePlayetc.
MobileValueAddedservices(MVAS)/MobileInternet:
•  The company has entered into agreements with major telecom
operators, namely Airtel, Vodafone, Reliance Communica9on, Idea,
etc.
•  Shemaroo distributes imagery, videos, full songs, etc. under MVAS
through both operator branded portals as well as its own branded
portals
OtherNewMediaPlaUorms:
•  Shemaroo also distributes its content through other plaUorms like
DTH,Interac9veservices,IPTV
Q4 FY16 Revenue (INR Mn)
200
150
177
115
100
50
0
Q4FY15
Q4FY16
FY16 Revenue (INR Mn)
700
635
600
500
400
373
300
200
100
0
FY15
FY16
Tradi9onalMedia&Services
Tradi9onal Media Ver9cal Includes – Broadcast Syndica9on,
HomeEntertainmentandOthers
BroadcastSyndica9on:
•  Shemarooacquirescontentonperpetualoraggregatedbasis
andthensyndicatesitslibrarytoBroadcas9ngchannels.
•  Shemaroo has a diverse content library, which it syndicates
rightstovariousbroadcas9ngchannels.
HomeEntertainment:
•  The legacy Home Entertainment business ver9cal of
Shemaroohashelpedittobecomeana9onwidewellknown
andacceptedbrand.
•  OverthelastfewyearsthetrendintheHomeEntertainment
industry has been migra9ng from physical to digital formats
whichishowthecompanyisalsoposi9oningitself
OtherMedia:
•  Shemaroo also distributes its contents to other media
plaUorms like Airborne rights for in-flight entertainment,
Interna9onalFilmfes9vals,overseasetc.
Q4 FY16 Revenue (INR Mn)
880
860
840
820
800
780
760
740
720
700
855
757
Q4FY15
Q4FY16
FY16 Revenue (INR Mn)
3,250
3,134
3,000
2,874
2,750
2,500
FY15
FY16
HistoricalConsolidatedIncomeStatement
Par9culars(INRMn.)
FY12
FY13
FY14
FY15
FY16
RevenuefromOpera9ons
1,820
2,147
2,646
3,234
3,749
OtherIncome
51
14
13
13
18
TotalRevenue
1,871
2,161
2,659
3,247
3,767
TotalExpenses
1,355
1,574
2,003
2,366
2,652
EBITDA
516
587
657
881
1,115
27.58%
27.16%
24.71%
27.13%
29.60%
Deprecia9on
29
30
30
37
37
FinanceCost
193
183
192
212
228
PBT
294
374
435
632
850
Tax
80
128
165
222
307
PAT
Shareofprofit/(loss)inassociate
company
214
247
270
410
543
-8
-11
1
-1
-22
PATaderadjustments
206
236
272
409
521
11.01%
10.92%
10.23%
12.60%
13.83%
10.86
12.42
13.68
17.35
19.18
EBITDAMargin(%)
PATMargin(%)
DilutedEPS
12
HistoricalConsolidatedBalanceSheet
EquityandLiabili9es(INRMn.)
ShareholdersFund
ShareCapital
ReservesandSurplus
FY14 FY15 FY16
199 272 272
1,546 2,902 3,377
Networth
NonCurrentLiabili9es
LongTermborrowings
Defferedtaxliabili9es
1,745 3,174 3,649
101
3 229
85
68
67
Longtemprovisions
CurrentLiabili9es
ShortTermBorrowings
Tradespayables
OtherCurrentLiabili9es
ShortTermProvisions
Total
Assets(INRMn.)
NonCurrentFixedAssets
FixedAssets
TangibleAssets
Intangibleassets
Intangibleassetsunder
development
FY14 FY15 FY16
332 287
-
9
8
-
TotalFixedAssets
NonCurrentInvestments
LongTermLoanandAdvances
OtherNonCurrentAssets
-
-
341 295
89 168
61
71
1
1
-
307
66
64
1
6
5
7
1,411 1,054 1,544
306 165 102
380 339 394
89
77 139
CurrentAssets
Inventories
TradeReceivables
Cashandcashequivalents
ShortTermloanandadvances
OtherCurrentAssets
2,005 2,887 3,846
1,405 1,268 1,066
9
25
13
190 170 768
22 -
-
4,123 4,885 6,131
Total
4,123 4,885 6,131
13
CapitalMarket
100%
80%
60%
40%
20%
0%
-20%
-40%
PriceData(Asof31stMarch,2016)
FaceValue
ShemarooEntertainment
INR
ShareholdingPaiernason31stMarch,2016
10
MarketPrice
297.1
52WeekH/L
375.0/171.1
MarketCap(INRMn)
Sensex
8,075.17
EquitySharesOutstanding(Mn)
27.18
1YearAvg.TradingVolume('000)
37.17
DII,2.37%
FII,11.40%
Others,
20.41%
Promoters,
65.82%
Disclaimer
No representa9on or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or
correctnessoftheinforma9onoropinionscontainedinthispresenta9on.Suchinforma9onandopinionsareinalleventsnotcurrentarerthedateof
thispresenta9on.Certainstatementsmadeinthispresenta9onmaynotbebasedonhistoricalinforma9onorfactsandmaybe"forwardlooking
statements" based on the currently held beliefs and assump9ons of the management of Shemaroo Entertainment Limited (“Company” or
“Shemaroo”),whichareexpressedingoodfaithandintheiropinionreasonable,includingthoserela9ngtotheCompany’sgeneralbusinessplansand
strategy,itsfuturefinancialcondi9onandgrowthprospectsandfuturedevelopmentsinitsindustryanditscompe99veandregulatoryenvironment.
Forward-looking statements involve known and unknown risks, uncertain9es and other factors, which may cause the actual results, financial
condi9on,performanceorachievementsoftheCompanyorindustryresultstodiffermateriallyfromtheresults,financialcondi9on,performanceor
achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its
compe99veenvironmentandpoli9cal,economic,legalandsocialcondi9ons.Further,pastperformanceisnotnecessarilyindica9veoffutureresults.
Giventheserisks,uncertain9esandotherfactors,viewersofthispresenta9onarecau9onednottoplaceunduerelianceontheseforward-looking
statements.TheCompanydisclaimsanyobliga9ontoupdatetheseforward-lookingstatementstoreflectfutureeventsordevelopments.
Thispresenta9onisforgeneralinforma9onpurposesonly,withoutregardtoanyspecificobjec9ves,financialsitua9onsorinforma9onalneedsofany
par9cularperson.Thispresenta9ondoesnotcons9tuteanofferorinvita9ontopurchaseorsubscribeforanysecuri9esinanyjurisdic9on,including
theUnitedStates.Nopartofitshouldformthebasisoforberelieduponinconnec9onwithanyinvestmentdecisionoranycontractorcommitment
topurchaseorsubscribeforanysecuri9es.Noneofoursecuri9esmaybeofferedorsoldintheUnitedStates,withoutregistra9onundertheU.S.
Securi9esActof1933,asamended,orpursuanttoanexemp9onfromregistra9ontherefrom.
Thispresenta9onisconfiden9alandmaynotbecopiedordisseminated,inwholeorinpart,andinanymanner.
ValoremAdvisorsDisclaimer:
Valorem Advisors is an Independent Investor Rela9ons Management Service company. This Presenta9on has been prepared by Valorem Advisors
basedoninforma9onanddatawhichtheCompanyconsidersreliable,butValoremAdvisorsandtheCompanymakesnorepresenta9onorwarranty,
expressorimplied,whatsoever,andnorelianceshallbeplacedon,thetruth,accuracy,completeness,fairnessandreasonablenessofthecontentsof
thisPresenta9on.ThisPresenta9onmaynotbeallinclusiveandmaynotcontainalloftheinforma9onthatyoumayconsidermaterial.Anyliabilityin
respectofthecontentsof,oranyomissionfrom,thisPresenta9onisexpresslyexcluded.ValoremAdvisorsalsoherebycer9fiesthatthedirectorsor
employeesofValoremAdvisorsdonotownanystockinpersonalorcompanycapacityoftheCompanyunderreview.
Forfurtherinforma9onpleasecontactourInvestorRela9onsRepresenta9ves:
Mr.AnujSonpal
ValoremAdvisors
Tel:+91-22-3006-7521/2/3/4
Email:anuj@valoremadvisors.com