final ppt.ppt neha
TRANSCRIPT
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SHAPING THE FUTURE OF INDIAN
ENTERTAINMENT
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"It is our vision to build on our market leadership
position within the filmed entertainment arena andexpand within the rapidly growing Indian media &entertainment sector by capitalising on our library,distribution network, scale and strong balancesheet."
- Mr. Kishore, Executive Director
VISION
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Date of IncorporationAugust 19,1994 with the name Rishima International Private Limited. Main Object of the Company
To carry on in all parts of the world the business of exhibiting,
distributing and otherwise exploiting cinematograph and television
films and motion pictures of all kinds, including advertisement
commercial films. To plan, prepare, estimate, develop, supplyexecute and otherwise deal with internet content creation and delivery
services, commerce, e-commerce, delivery systems, audio or visual,
multimedia development, marketing franchising, brand building,
buying, selling, exchanging, importing, exporting, supplying, trading
and dealing with any related issues products or services anywhere inthe world.
Registered Office201,Kailash Plaza, plot No. A-12 Opposite laxmi Industrial Estate, off
New Link Road Andheri (West) Mumbai-400053
Website : www.erosintl.com
COMPANY PROFILE
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MAJOR EVENTS
Year Event
1994 Incorporation of our Company and our Subsidiary Eros International Films
1999 Acquired business and assets of Jupiter Enterprises Commenced selling home entertainment, for instance VCDs and DVDs
2005 Release of our first co-produced film, Waqt
2006 First India theatrical release and music distribution of the film Omkara Launch of the Eros Music label
2007 Set up VFX operations under our Subsidiary EyeQube Entered into a shareholders agreement for acquisition of 64.0% in Big
Screen Entertainment
2008
20092010
Entry into Tamil film industry pursuant to the assignment of theAyngaran SHA to Copsale, by Eros plc
Incorporation of our Subsidiary Eros Music Publishing for signing
lyricists and composers Joint Venture Agreement with Universal Music India for talent
management India theatrical distribution expansion through offices in Mumbai and
DelhiFour out of the Top 10 Box Office Hits in 2009 were Eros films.Five out of the Top 10 Box Office Hits in 2010 were Eros films.
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Mr. Arjan Lulla, 76 years, has been instrumental in the foundation of the Eros Group and
the expansion of their business. He is on the board of directors of our Promoter, ErosWorldwide, and is honorary life president of our Promoter, Eros plc, which is also theholding company of the Eros Group. In addition, Mr. Arjan Lulla is on the board of
directors of Beech, which is a promoter of our Promoter, Eros Plc.
Eros International Plc
Eros Worldwide
OUR PROMOTERS
Natural Person behind the Promoters
Mr. Arjan Lulla
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Mr. NareshChandraIndependent Director
A former Civil Servant. He has Served as Chief Secretary in the state of Rajasthan. He has served as the Governor of the State of Gujarat in1955 -1996.
Advisor to the Government of Jammu & Kashmir. He was appointed as non executive chairman &
independent director by Eros International on September28th 2009.
Mr. Sunil LullaExecutive VC & MD
He has over 20 years of experience in the media industry. He is the first Director of our Company appointed as per the
provisions of the MoA of our Company. He has been instrumental in developing the Eros IndiaGroup.
He was appointed as Managing Director and Executive ViceChairman on Feb 11, 2010 with effect from Feb 11, 2010.
EXPERIENCED MANAGEMENT
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He graduated with a bachelors degree in Arts from Mumbai University.
He has over 20 years of experience in the media and film industry. He is a member of the British Academy of Film and Television Arts
and Young Presidents Organisation and is also a board member
of the University of California, Los Angeles (UCLA).
He has been honoured at the Asian Business Awards 2007 and theIndian Film Academy Awards 2007 for his contribution in taking
Indian cinema global.
Mr. Kishore LullaExecutive Director
Mr. VIJAYAHUJAExecutive Director
He holds a bachelors degree in commerce from Mumbai
University. He co-founded Eros International Plcs UK business in 1988. He has played an important role in implementing the keyinternational strategies of Eros.
EXPERIENCED MANAGEMENT
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EXPERIENCED MANAGEMENT
Ms. JyotiExecutive Director
She has over 16 years of experience in the media andentertainment industry. She has been a part of the core team that founded B4UTelevision Network in the UK in 1998-99. She was appointed as an Executive Director by ourCompany on September 28, 2009,
Mr. Dhirendra Swarup
Independent Director
A former Civil Servant. He was a member of the Board of the SEBI, and a member ofthe Permanent High-level Committee on Financial MarketsA former civil servant, he retired as Secretary, Ministry of
Finance, Government of India in 2005,He was appointed as Independent Director of our Company on
February 10, 2010.
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Mr. Kamal JainChief Financial officer
He is a chartered accountant with 17 years of
professional experience in varied industries such as mediaand entertainment, cement, chemical, shipping and SAPconsulting Prior to joining us, he was working with DNA, an Esseland Bhaskar group joint venture. He has earlier workedwith Percept Group and the Swiss multinational CibaSpecialty.
He is a qualified chartered accountant and companysecretary.
He has approximately 16 years of work experience. Prior to joining our Company, he has worked with SonyPictures India, Speciality Ranbaxy Limited, Aarjay Apparels,Pearl Polymers Limited and C.C. Choksi.
Mr. Rajesh BhatiaCompany Secretary
& Manager (Finance)
KEY MANAGEMENT PERSONNEL
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MANAGERIAL ORGANISATIONAL STRUCTURE
Board of Directors
Executive Vice Chairman &Managing Director
Chief Creative
Officer
Chief Digital OfficerGroup Chief Financial
Officer - India
Senior Vice President
(Business Development)
Senior Vice President
(India Theatrical)
Vice President(Public Relations)
General Manager(Marketing)
Vice President(India Video & Audio)
Vice President(Cable and Television
Operations)
Company Secretaryand Compliance Officer
Vice President(Banking and
Finance)
Group FinancialController - India
Senior VicePresident Operations
Deputy General Manager(Human Resourcesand Administration
Vice PresidentInflight Entertainment
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CORE STRENGTHS
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Our group structure
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Eros Digital Private Limited
Eros Network Properties Private Limited
Eros International Limited
Eros International USA Inc
Eros Distribution (Canada) Limited
Eros Australia Pty Limited Eros Music Publishing Limited
Eros Pacific Limited
Eros Music publishing GMBH
Eros International PTE Limited Shivam Enterprises
Acacia Investments Holdings Limited
Belvedere Holdings PTE limited
OUR SUBSIDIARIES
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Popular Stars Signed By The Company
Akshay Kumar
Kareena Kapoor
Saif Ali Khan
Ritesh Deshmukh
John AbrahamRajniKant
Priyanka Chopra
Deepika Padukone
Asin
Shahid Kapoor
Zarine Khan
Kangana
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PRODUCTION DATA
S.
N.
PERIOD NO. OF
HINDI FILMS
NO. OF
REGIONALFILMS
HINDI FILM NAMES
1 April to June,2010
4 10 Housefull & Pathshala
2 March 31,
2010
13 102 Kambakkht Ishq, Love Aaj Kal,
Wanted De Dana Dan3 March 31,
200919 75
4 March 31,2008
23 42 Om Shanti Om, Partner, HeyBaby
5 March 31,2007
27 2 Omkara, Namastey London
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UPCOMING RELEASES
VICKY DONOR
DIRECTOR: SHOOJIT SIRKAR
HOUSEFULL 2
DIRECTOR: SAJID KHAN
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UPCOMING RELEASES
AGENT VINOD
DIRECTOR: SRIRAM RAGHAVAN
KOCHADAIYAAN THE LEGEND
DIRECTOR: SOUNDARYA R ASHWIN
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UPCOMING RELEASES
RANA
DIRECTOR:K.S. RAVIKUMAR
YOHAN: ADHYAYAM ONDRU
DIRECTOR:GAUTAM VASUDEV MENEON
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BUSINESS MODEL
SOURCING CONTENT
Leverage our relationships with the creative film industry and acquire
and co-produce compelling content. We have diverse portfolio of over 75 films, mainly 1020 mainstream
Hindi and the rest regional language films such as Tamil, Marathi andPunjabi.
We have increased our focus on high and mid budget Hindi filmsbecause better production values and high profile stars attract larger
audiences and higher appeal for television and digital licensing whichallows us to utilise a pre-sale strategy to mitigate production risk.
DISTRIBUTION FORMAT
New and library films using our in-house distribution platform acrossthree major distribution channels mainly theatrical including multiplex
chains and single screens, television syndication including satellite, cable and terrestrial; and digital new media
including music, mobile, DVD, IPTV, SVOD, in-flight, online and VFXproduction services;
to generate diversified revenue streams.
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Our content is primarily distributed to the 1.2 billion people in India as wellas audiences in over 50 countries
internationally expatriate including South Asian populations concentrated incountries such as the UK, USA, Canada, Dubai, South Africa, Australia andSingapore as well as markets that consume dubbed and subtitled Indianfilms such as Europe, South East Asia and the Middle East.
BUSINESS MODEL
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financial PERFORMANCE
The sales for the year ended 31st March, 2010 wasRs. 53,456.57 lakhs.
The profit after tax for the financial Year ending
31st March, 2010 was Rs.5163.85 lakhs.
The Net Worth of the Company as at 31st March,2010 was Rs. 16,346.95 lakhs.
The Net Worth of the Company has increased byRs. 5406.99 lakhs from the previous f.y
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REVENUE AND EXPENDITURE
Income(in lakhs)0
20000
40000
60000
2006
2007
2008
2009
2010
Income(in lakhs)
Expenditure(inlakhs)
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NET WORTH
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2006 2007 2008 2009 2010
Net Worth ( Rs. In
lakhs)
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NET WORTH GRAPHICAL VIEW
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Profit after tax
0
1000
2000
3000
4000
5000
6000
2006 2007 2008 2009 2010
Profit after Tax( in Rs.
lakhs)
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EARNING PER SHARE
0
1
2
3
4
5
6
7
8
2006 2007 2008 2009 2010
Earning per Share
Earning per Share
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Summary of accounting ratios
Particulars 2010 2009 2008 2007 2006
Earning Per
Share Rs.7.23 6.71 4.83 0.46 0.17
Net Asset Per
Share Rs.22.89 15.32 8.79 3.96 3.50
Return on Net
Worth (%)
31.59 43.81 54.95 11.57 4.90
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CASH FLOWSTATEMENT
CASH FROMOPERATING ACTIVITIES
[24290.79 lakhs]
CASH FROMINVESTMENTACTIVITIES
[(21608.54) lakhs]
CASH FROMFINANCING ACTIVITIES
[4133.58 lakhs]
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Structure of the issue
30%
10%
60%
Issue Structure
Retail Individual Investor Non Institutional Investor QIB
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BASIS FOR ISSUE PRICE
The Issue Price will be determined in
consultation with the BRLMs, on the basis ofassessment of market demand for the EquityShares through the Book Building Process.
The face value of the equity shares is Rs. 10. The Issue Price is [] times the face value at
the lower end of the Price Band and [] timesthe face value at the higher end of the PriceBand.
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Factors affecting the issue price
Valuable and expanding content library Well developed content distribution network
Portfolio approach to films and a strong regional presence
Strong long-standing relationships with talent within the industryprovide steady access to content and talent
Strong and experienced management Value of the Eros name
Qualitative Factors:
Weighted Average Earning Per Share (EPS)
Weighted Average Return on Net Worth Minimum Return on increased Net Worth Net Asset Value Comparison with Industry Peers : UTV SoftwareCommunications Limited
Quantitative Factors:
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WHY COMPANY IS PROPOSING ISSUE?
Acquiring and co-producing Indian films,including primarily Hindi language film as well as
certain tamil & other regional language films.
General corporate purposes
The main objects clause of our Memorandum ofAssociation and objects incidental to the mainobjects enable us to undertake our existingactivities and the activities for which funds are
being raised by us through this Issue.
OBJECTS OF THE ISSUE
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* To be finalised on determination of Issue price
Requirement of Funds
& Means of FinanceS.N. Description Amount (Rs. in Lakhs)
1 Gross Proceeds of the Issue* -
2 Issue Expenses* -
3 Net Proceeds of the Issue* -
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Utilisation of the Net
Proceeds of the IssueS.N. Description Amount proposed to be financed
from Net Proceeds (in Lakhs)
1 Acquiring and co-producing Indianfilms
28000.00
2 General Corporate Purpose
[.]Total*
[.]
* To be finalised on determination of Issue price
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Issue Related ExpensesActivity Expenses
(Rs. In lakhs)% of
Issue Size
(%)
% ofIssue
Size (%)
Lead management fees and Underwriting,brokerage and selling commission
[.] [.] [.]
Registrar's Fees [.] [.] [.]Advertising and marketing [.] [.] [.]
Printing and distribution [.] [.] [.]
Fees paid to IPO grading agency [.] [.] [.]
Bankers to the Issue [.] [.] [.]
Others (SEBI filing fees, bidding softwareexpenses, depository charges, listing fees,etc.)
[.] [.] [.]
Total estimated Issue expenses* [.] [.] [.]
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Any expenditure towards the aforementionedobjects would be recovered from the Net
Proceeds of the Issue Entire requirement of the objects will be
funded from the Net Proceeds. There is norequirement of making firm arrangements of
finance towards 75% of the stated means offinance, excluding the amount to be raisedthrough the issue & existing identifiable
internal accruals
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A. ACQUIRING & CO-PRODUCING
INDIAN, TAMIL & OTHER
REGIONAL FILMS
DETAILS OF THE OBJECTS OF THE ISSUE
Company intends to use upto Rs. 28000.0Lakhs of the Net Proceeds to fund our Hindi,Tamil & other regional language films.
The Eros India Library includes over 1000Indian films including regional language films.
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Revenues earned by exploiting film contentthat we buy from third parties, co-produce &occassionaly produce.
We source or acquire our film conten throughentering into assignment/ licensing/ co-produtions arrangements with other film
producers & co-producersAll these above content is expolited &
distributed by us end-to-end through multipleformats such as theatres, home
entertainment, principally in form of DVDs,VCDs and music CDs, television syndication &digital new media.
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CONTENT COST OF THE PROJECT
Cost of Rs. 28000.00 Lakhs will include thefollowing cost with estimated % of the totalcost:
Cast & Crew Expenses (45%)
Shooting Expenses (30 %) Post Production Expenses (5%)
Marketing & Advertising (20%)
We have deployed Rs. 5388.00 Lakhs towardsthe Hindi & Marathi film projects as on July 31,2010
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B. GENERAL CORPORATE PURPOSES
Organic & inorganic growth opportunitiesincluding acquisitions & strategic initiatives.
New projects and existing projects.
Balance net proceeds will be utilised towardsgeneral corporate purposes.
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Persons associated with the Public Issue
Book Running Lead Managers:
Registrar to the Issue: Statutory Auditors:
Bankers to the Issue:
ENAM SECURITIES PRIVATE LIMITED KOTAK MAHINDRA CAPITAL COMPANY LIMITED
MORGAN STANLEY INDIA COMPANY PRIVATE LIMITED RBS EQUITIES (INDIA) LIMITED
Link Intime India Private Limited Walker Chandiok & Co.
Yes Bank Limited
Standard Chartered Bank HDFC Bank Limited The HSBC Limited Punjab National Bank The Royal Bank of Scotland N.V. ICICI Bank Limited
Kotak Mahindra Bank Limited
Syndicate MEMBER
Kotak Securities Limited
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IPO Grading
Issue graded by
CREDIT ANALYSIS & RESEARCH LTD.CARE
IPO GRADING 4/5
The IPO grading is assigned on a five point scale from 1 to 5, with IPOgrade 4/5 indicating above average fundamentals.
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BIDDING PROGRAMME
BID OPENS ON September 17, 2010
BID CLOSES ON September 21, 2010
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WHY TO INVESTIN EROS
INTERNATIONALMEDIA LIMITED?
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Investment Positives
Rapid Analogue To
Digital Migration And
Emergence Of New
Digital Media Platforms
Given The Diversified
Revenue Stream From Its
Business And The Strong
Growth Trajectory It Has
Managed Over The Years,
Investors Can Consider
Subscribing To The Offer.
The ROI On This Stock Is More
Than 21% For FY10. So At This
Point Of Time, We Would
Recommend Investors To Buy
Into Eros International Media
Stock
Opportunity To De-risk TheMovie Business Model Through
Pre-sale Of Rights. Eros With
30 Years Of Experience In
Acquiring Movie Rights And
Strong Movie Distribution
Network In India Is Expected
To Largely Benefit
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Eros has a content library of over 1000 films and thecompany is yet to milk these effectively.
The entry of new participants has had a positive impact onthe Indian M&E industry as it has helped in expanding the
overall size of the market. This is expected to continue withthe entry of additional players emerging to capture newaudiences with advancements in product offering,marketing and distribution
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1. EROS INTERNATIONAL MEDIA LTD. Eros International MediaLimited operates in the media and entertainment sector in India andinternationally. Acquiring and co-producing Indian films, - includingprimarily Hindi language films as well as certain Tamil and otherregional language films.
2. The companys vision is to emerge as a leading entertainment
house that balances diverse platforms in a dynamically changingmedia environment.
3. Its strategy is to further strengthen its competitive advantage bybuilding on and augmenting the Eros India Library and furtherleveraging its portfolio approach to film content.
4. Consolidation of music catalogues in order to exploit growth fromradio, mobile, public performances and internet is another keystrategy.
OUR UNIQUE SELLING POINTS
GLOBAL DISTRIBUTION
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GLOBAL DISTRIBUTION
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Thank You