2. 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 (ZEE) 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. ZEEL does not undertake to update these forward-looking statements to
reflect events or circumstances that may arise after publication.
2
3. ZEE ENTERTAINMENT
Hindi Entertainment
Music & Lifestyle Sports Channels
English Regional
Entertainment Entertainment
Largest Indian TV Network in the World
3
9. OUR GROWTH JOURNEY
• Flagship channel - Zee TV launched
1992
• IPO of Zee Telefilms Limited
• Zee TV goes global
1995
• Zee Network launched in UK
• Another major international foray
1998
• Zee Network launched in USA
• Zee buys out News Corp‘s 50% stake in its television
1999 broadcasting business
9
10. OUR GROWTH JOURNEY
• Distribution partnership with Turner, a Time Warner
2002 subsidiary
• Demerger of Zee into four separate listed companies
2007
• Zee acquires 50% stake in Ten Sports
• Zee acquires the regional entertainment networks
2010
• Zee acquires another 45% stake in Ten Sports
• Zee, Star, Turner & Den form a distribution alliance –
2011 MediaPro Enterprise India.
10
11. INDIAN MEDIA SECTOR
Television Industry Revenues (Rs bn)
Media Spend as a % of GDP
15% 16% 1.1%
15%
14%
0.9%
12%
0.8%
0.8% 0.8%
223
194
7%
158 0.4%
140
122 169
103 118
71 82 88
61
2006 2007 2008 2009 2010 2011P India UK US China Japan World
Sub revenues Ad revenues Television growth rate (%)
Source: FICCI-KPMG Report 2011 Source: Worldwide Media and Marketing Forecasts, Group M, 2009
• M&E industry size estimated at Rs 653 bn in 2010
• Television sector estimated at Rs 297 bn, constituting 45% of the industry
• Television recorded growth of 16% in 2010 ahead of industry growth of 11%
11
12. INDIAN TV HH'S AT A GLANCE
Growth
Digital Digital +31 %
20 Mn 26 Mn
C&S HHlds C&S HHlds
103 Mn 116 Mn +12 %
TV Owning TV Owning
Households Households +6 %
134 Mn 141 Mn
Total Households
Total Households
223 Mn 231 Mn +3 %
2010 2011
Source: TAM Media Research
All India Household figures in million
12
13. INDIA – RAPID DIGITISATION
DTH Subscribers (Net, in Million No.s)
71
64
56
48
38
28
16
10
2008 2009 2010 2011P 2012P 2013P 2014P 2015P
Source: FICCI-KPMG Report 2011
• DTH industry saw a growth of 75% in 2010
• Industry adding almost a million subscribers each month
• Digitization ordinance passed by the Govt likely to give a further push to the
digitization wave
13
24. CRICKET, SOCCER, TENNIS & MORE
• Ten Sports, Ten Action+, Ten Cricket - The leading sports network of the country
• Key properties in 2011:
• Cricket: India tour of West Indies, Sri Lanka vs Australia, South Africa vs
Australia, Pakistan vs Sri Lanka, South Africa vs Sri Lanka
• Others: WWE Wrestlemania, UEFA Champions League, US Open, ATP events,
UEFA EUROPA Cup, Moto GP, European Tour Golf
24
25. ENGLISH & NICHE CHANNELS
• Tie-ups with leading studios across the world
25
26. ZEE MARATHI - HIGHLIGHTS
• Leadership position in Marathi GEC genre
• Library of over 9,000 hours & rights to over 400 movie titles
• Key properties: Pinjara, Kunku, Fu Bai Fu, Idea Saregamapa 2011
Average Weekly GRPs
215
149
112
65
37
Zee Marathi ETV Star Pravah Zee Talkies Mi Marathi
Marathi
Source: TAM, Period: FY11, CS 4+, All Maharashtra
26
27. ZEE BANGLA - HIGHLIGHTS
• Leading GEC in West Bengal with dominant share in non-fiction programming
• Library of over 9,000 hours & rights to over 600 movie titles
• Key properties: Agnipariksha, Saat Paake Bandha, Rashi, Mirakkel Akkel
Challenger 6
Relative share in non-fiction
Aakaash Rupashi Bangla
Star Jalsha
Bangla 9% 4%
ETV Bangla
8% Mahua
20%
Bangla
2%
Zee Bangla
57%
Source: TAM, Period: FY11, CS 4+, All WB
27
28. ZEE TELUGU - HIGHLIGHTS
• Leading GEC in AP with dominant viewership share in fiction programming
• Library of over 7,000 hours & rights to over 575 movie titles
• Key properties: Chinna Kodalu, Muddubidda, Saregamapa Li'l Champs
Relative share in fiction
Source: TAM, Period: FY11, CS 4+, All AP
28
29. ZEE KANNADA - HIGHLIGHTS
• Zee Kannada- Steadily gaining market share
• Library of over 6,500 hours & rights to over 150 movie titles
• Key properties: Devi, Chi Sou Savitri, Yariguntu Yarigilla
Relative channel share
Suvarna
Kasturi 21%
8%
ETV Kannada
16% Udaya Tv
41%
Zee Kannada
14%
Source: TAM, Period: FY11, CS 4+, All Karnataka
29
30. INTERNATIONAL OPERATIONS
• 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, South East Asia, Saudi Arabia
• International subscription
contributed 14% of company top line
in FY2011
• Renewed focus on advertising as a
source of revenues
30
31. STRENGTHENING PAY REVENUES
50% 50%
• Zee Turner is a 74:26 joint venture between ZEEL and Turner currently
distributing ZEEL channels, Zee News Channels and Turner Channels
• Star-Den is a 50:50 JV between Star India and DEN for distribution of Star
channels, Fox channels and third party channels like NDTV Channels
• Media Pro will distribute all the channels which are currently being distributed
by Zee-Turner and Star Den
31
33. FINANCIAL RESULTS
Full Year Second quarter
(Rs million)
FY10 FY11 Growth FY11 FY12 Growth
Operating Revenues* 21,998 30,136 37% 7,116 7,184 1%
Expenditure* 15,863 21,870 38% 5,231 5,108 -2%
Operating Profit (EBITDA) 6,135 8,266 35% 1,885 2,075 10%
PBT before excep items 6,739 8,725 29% 2,064 2,221 8%
Add: Exceptional Items - 197 - -
Less: Provision for Tax 573 2,671 366% 801 621 -22%
Profit After Tax 6,166 6,251 1% 1,263 1,600 27%
Less: Minority Interest (195) (118) 0.6 39.7
EBITDA margin 27.9% 27.4% 26.5% 28.9%
*Note A: Operating revenues and expenditure for Q2 FY12 are not comparable to those for Q2 FY11 because of the change in accounting treatment
of domestic subscription revenues, which are now being reported net of expenses. This change has been necessitated due to the formation of
Media Pro, a joint venture, which pays subscription revenues to ZEE net of expenses.
33
34. BALANCE SHEET
As on 31st March
(Rs million)
2010 2011
Shareholders Funds 38,300 30,948
Loan Funds 1,195 17
Capital Employed 39,495 30,965
• Debt free balance
Net Fixed Assets 19,587 8,464
sheet
Investments 3,203 6,964
Deferred Tax Assets 133 192
• Net Cash of over
Current Assets, Loans & Advances 24,390 23,027
Rs12,500mn as
a) Inventories 4,713 5,396
on Mar 31, 2011
b) Sundry Debtors 7,488 8,955
c) Cash & Bank Balance 5,864 3,858 • Return on Avg.
d) Loans & Advances 6,325 4,818 Capital Employed
Less: Current Liabilities & Provisions 7,840 7,801 of 25%
Net Current Assets 16,550 15,226
Minority Interest 22 119
Capital Deployed 39,495 30,965
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36. OUTLOOK AND STRATEGY
Content Revenues Returns
• Innovation & • Digitization: Big • Consolidation
quality pay opportunity • Collaboration
• Regional • Advertising: • Disciplined
revolution Continued growth investments
• Niche content • New streams:
• Broadcast to Digital media,
narrowcast syndication
Our Strategy
Enhance our leadership position in the genres we compete
Continue to run our business as best in class
Deploy strong cash flows to improve returns to shareholders
36
37. OUTLOOK AND STRATEGY
Content Revenues Returns
• Innovation & • Digitization: Big • Consolidation
quality pay opportunity • Collaboration
• Regional • Advertising: • Disciplined
revolution Continued growth investments
• Niche content • New streams:
• Broadcast to Digital media,
narrowcast syndication
Our Strategy
Enhance our leadership position in the genres we compete
Continue to run our business as best in class
Deploy strong cash flows to improve returns to shareholders
Consistent performer since inception; Shareholder value CAGR of >30% between 1992 to 2011
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