Certain statements in this release concerning our future growth prospects are forward-looking statements,

Transcription

1 Date: May 17, 2006

2 Disclaimer Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in our business segments, change in governmental policies, political instability, legal restrictions on raising capital, and unauthorized use of our intellectual property and general economic conditions affecting our industry. ENIL may, from time to time, make additional written and oral forward looking statements, including our reports to shareholders. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company. 2

3 1. Company Snapshot 2. Business Overview 3. Directors & Management Agenda 4. Key Financials FY Ownership Structure & Share Price Performance 6. Future Business Outlook 3

4 Company Snapshot 4

5 Company Snapshot Headquarters: Incorporated: Listed: Subsidiary: Business: ENIL TIMPL FY06 Total Income: FY06 EBITDA: FY06 EBITDA Margin: Mumbai, India 1999 February 15, 2006 Times Innovative Media Private Limited (TIMPL), incorporated on October 27, 2005 Radio Broadcasting brand Radio Mirchi Out-of-home Media brand Times OOH; and Experiential Marketing brand Experience Rs. 1,406.7 mn (US$ 31.3 mn), including other income of Rs mn (US$ 0.7 mn) Rs mn (US$ 9.1 mn) 29.0% 5

6 ENIL: Unique Ability to Offer Integrated Media Solutions Our Vision is to be A Leading City-centric Media Company By Delivering Unique Audiences Through Media Vehicles Like FM Radio, Experiential Marketing And Out-of-home Media 6

7 Business Division Snapshot Radio Mirchi: Till FY 2006 Launched in April 2006 Planned Key Customers: Times OOH: Till FY 2006 In April 2006 Key Customers: Experience: Key Customers: 7 Stations (Delhi, Mumbai, Kolkata, Chennai, Pune, Ahmedabad and Indore) 3 Stations (Bangalore, Hyderabad and Jaipur) 22 additional Stations in next months Hutch, HLL, Sahara, BCCL, Bharti, Pepsi, ICICI, Dabur, Set Max Mumbai (1400+ Bus Queue Shelters), Delhi Metro (13 Stations), Kolkata (80 Hoardings) Delhi Noida toll bridge (66 Displays) and LED Bharti, Hindustan Times, HLL, HSBC, Standard Chartered, Cadbury, Coca-Cola 600+ events including Femina, Filmfare and Pravasi Bharti in FY2006 Samsung, Set India, SBI, Mastercard, Deutsche Equities, Castrol India, Trent-Tata 7

8 Business Overview 8

9 ENIL Key Highlights We are operating in high growth industry We are well prepared and well positioned for the increasing competition We exceeded our set financial goals for FY06 We have managed to increase our market share in radio to over 50% We have maintained our number 1 status in listenership We launched 3 new radio stations in Jaipur, Bangalore and Hyderabad within 75 days of the completion of bidding process We won Out-of-Home advertising rights of Delhi Metro (13 stations), Kolkata (80 hoardings) and Delhi-Noida toll bridge (66 displays) for total license fee of Rs mn (US$ 7.6 mn) payable over a license tenure of 2-5 years We have identified our challenges for next year and are working towards addressing them 9

10 High Growth Projected for Radio Industry Ad Spent as a % of GDP Radio Industry Share in Ad Spend Thailand New Zealand Singapore World Average Philipines China India Philipines New Zealand Singapore World Average Thailand China India Source: Zenith Optimedia Indian Ad Spend: Potential for ad industry to grow to Rs 480 billion ($11 billion) in 10 years Indian Radio Industry: PWC estimates radio industry to grow at CAGR of 32% in next 5 years increasing its ad share to 5% and size to Rs. 12 billion 10

11 Radio Industry: Positive Regulatory Reforms Roll-out of Phase II of privatization Fixed License Fee regime changed to OTEF + Revenue share Annual license fee 4% of gross revenues FDI in Radio increased to 20% From existing 12 cities to 91 cities From existing 21 stations to approximately 300 stations From existing 7 players to 43 players Growth opportunity for private FM: From current 3% (Rs 3.7 billion) of Rs 129 billion to 8% (Rs 38.0 billion) of Rs 480 billion in ten years starting FY 07 11

12 We are now present in all the top 13 towns (pop 2 mn +) ENIL won 25 licenses in the Phase II bidding Jaipur Kanpur Delhi Lucknow Only company to have presence in top 13 towns with population of 2 mn+ Ahmedabad Surat Mumbai Pune Nagpur Kolkata Only incumbent in all the four metros Bangalore Hyderabad Chennai Phase I excluding Indore Phase II A+ & A circles 12

13 FM Radio Competitive landscape Player Total stations Of top 13 towns Adlabs 44 7 South Asia/Kaal Radio ENIL Radio City Dainik Bhaskar 17 4 Bag Films 10 0 Zee/Century 8 0 Thanthi/Today/Midday 7 1/3/7 HT/Positive/Raj Pat 4 4/0/1 Red FM

14 #1 Listenership Share Lakhs Listnership in Mumbai Lakhs Listnership in Delhi Radio Mirchi Radio City Red FM Go 0.0 Radio Mirchi Radio City Red FM Source: MRUC Survey, AC Neilson (ORG-Marg-Wave 8, fieldwork Jan 06 to Mar 06. All Sec 12+) Source: MRUC Survey, AC Neilson (ORG-Marg-Wave 8, fieldwork Jan 06 to Mar 06. All Sec 12+) The Radio Station India Tunes To 14

15 Mirchi a Must-Have Media Vehicle Radio Mirchi Today Reaches More People Than The #1 TV/Print Media Brands 15

16 Track Record of Developing Innovative Content & Operating in Diverse Markets Innovative Content: Strong relationships with Hindi, Bengali and Tamil film fraternity Exclusive music breaks Mature research culture music/listenership Success in Diverse Markets Experience in establishing superior linkage between Marketing and Programming Customized content in 10 distinct markets We Are Best Positioned For Success In New Cities Across India 16

17 Superior Sales Capabilities Dedicated 180 member sales team across 10 centers Offering unique and innovative solutions to clients Hutch Pink Campaign Strong emphasis on training Mirchi Activation: Pioneers in the radio space 17

18 Indian Out of Home Industry and Growth Drivers Rs. In mn Indian OOH Industry Growth , ,500 12, ,500 8,500 9, ,500 Tendered Properties Increasing tender of properties to organized players Long term Contracts Opportunities for acquiring or taking long term rights for attractive sites in selected cities E 2008E 2009E 2010E Source: PWC report - The Indian Entertainment and Media Industry PWC estimates Out-of-Home media industry to grow at CAGR of 14% in next 5 years increasing its ad share to 7% and size to Rs billion Technology & Innovation Bring in technology based innovative OOH solutions like Light-emitting diode (LED) screens 18

19 Times OOH Media : Ability to Offer Integrated Marketing Solutions Mumbai Bus Shelters Till Dec 2008 Multi City- Multi Mix Must-Win Market South Mumbai & West Mumbai (except Central) : Target Quality: Affluent Population Mass 1400+Sites : Choice & Coverage Delhi Metro Stations Metro CP : 7 Stations Till 2007 Metro Dwarka : 6 Stations Till 2011 DND Flyover 66 displays : spread across flyway Till 2008 Must-Win Market Kolkata 80+ Hoardings : spread across city Till 2011 Must- Presence Market 19

20 Focus on new technology LED Video Walls Imported 4 LED screens Put up 1 LED screen at Sahara Mall Gurgaon Planned Rs mn (US$ 7.8 mn) over the time Positives of LED Dynamic - Television Outdoors, Motion and sound Aesthetic - Superior quality of color, Weather Proof Flexible - Scalable to any dimension Three Revenue Streams Branding Multiple Clients Content Sales 20

21 360 Experience: Move towards Large Ticket Business Focus on big ticket events: Conceptualizing, marketing and execution Filmfare Awards, International Film Festival of India, 2004, Femina Miss India Ability to raise sponsorships Marquee client list: Bennett Coleman & Co Ltd, Samsung India Ltd., SET India Pvt Ltd, State Bank of India, Mastercard, Deutsche Bank, Castrol India Now focusing on wellness not illness approach Fashion & Lifestyle Produce and manage Filmfare awards & Femina Miss India Pageant (Internal clients Times Group) Recently started building brands / properties such as the FDCI Fashion awards 360 o Third Party Conducted over 600 events in fiscal 2006 Focus on moving towards big events

22 Key Challenges facing ENIL Rapid roll-out of stations Talent identification, training and retention Retaining and growing absolute listenership numbers Cost management especially w.r.t marketing and payroll Music royalty regime rationalization Development of listenership research standards and spread across the country 22

23 Board of Directors And Management 23

24 Board of Directors Mr. Deepak M Satwalekar Non-Executive and Independent Director MD and CEO, HDFC Standard Life Director on the board of Infosys, Asian paints, Nicholas Piramal & others Mr. N Kumar Non-Executive and Independent Director Vice Chairman, Sanmar Group Director on the board of Bharti tele, The India Cement, MRF Ltd & others Ms. Rama Bijapurkar Non-Executive and Independent Director Marketing Consultant Director on the board of Infosys, Godrej Consumer, Crisil, UTI Bank & others Mr. Ravi Dhariwal Non-Executive Director Executive Director, BCCL Director on the board of BCCL, TIML Mr. A.P. Parigi Managing Director and Chief Executive Officer Board Driven company with emphasis on best corporate governance practices 24

25 Strong & Experienced Management Team CEO AP Parigi Experience 34 years overall 51/2 years at ENIL Deputy CEO Prashant Panday CFO Harvinderjit Singh Bhatia Business Head Times OOH Farid Kureshi SVP Legal & CS Anil Fernandes EVP, Regulatory Affairs Ravi Narula SVP, People Innovation Prasad Swaminathan Experience 17 years overall 51/2 at ENIL Experience 16 years overall, 5 at ENIL Experience 16 years overall, 4 at ENIL Experience 15 years overall, 3 at ENIL Experience 33 years overall 51/2 at ENIL Experience 10 years overall, 41/2 at ENIL Nandan Srinath, COO, ENIL India Sharath Chandra, COO, ENIL International Tapas Sen, Executive Vice President, Programming Kaushik Ghosh, Senior Vice President, Marketing Col. (Retd.) Nataraja Thiagarajan, Chief Technical Officer 25

26 Key Financials FY

27 ENIL Financials - Key Highlights Initial Public Offer of 13.2 mn shares of Rs.10/- each at a premium of Rs. 152/- aggregating issue proceeds of Rs. 2,138.4 mn Investment of Rs mn in 100% subsidiary Times Innovative Media Pvt. Limited (TIMPL) One Time Entry Fee of Rs.1,301.0 mn for 25 new radio licenses and Migration fee of Rs mn for existing 7 stations for 10 years Amortization of annual migration fee Rs.81.5 mn accounted in fourth quarter The Company granted 109,360 options at an exercise price of Rs.90/- each under ESOS Written back provision for license fees of Rs mn no longer required 27

28 Consolidated Results in line with Analyst Expectations In Rs. mn Total Income Operating Expenses EBITDA JMMS 1, , ENAM 1, , Actual 1, TIMPL Actual results are for 5 months period from October 27, 2005 to March 31, 2006, as compared to annualised numbers in the Analyst report PAT Margin (%) 26.4% % % EBITDA Margins of 29% in FY06 Margin (%) 15.0% 13.6% 15.1% Exceptional item of Rs mn not included in PAT 28

29 ENIL Standalone - Strong Financial Performance Revenue in Rs. Million EBITDA in Rs. Million FY04 FY05 FY FY04 FY05 FY06 29

30 ENIL Standalone - How did we Spend 5% 5% 3% 3% 2% 21% 7% 19% 16% 19% 30

31 ENIL Standalone: Key Financials FY 2006 In Rs. mn FYE 2005 (Audited) FYE 2006 (Audited) Increase in airtime sales of 57% in FY06 over FY05 Total Income Operating Expenses , EBITDA Margins of 32% in FY06 EBITDA PAT Margin (%) (122.6) (16.1%) (179.3) % Exceptional item of Rs mn not included in PAT Margin (%) (23.5%) 16.4% Recurring EPS (Rs.) (5.29)

32 Ownership Structure and Share Price Performance 32

33 Ownership Structure By Category Top Shareholders 18% Promoters Individuals 6% 2% 1%1% FIIs Corporates 72% TIML Fidelity BCCL HSBC (ME) Macquarie Morgan Stanley Shares (mn) % Holding 64.18% 9.48% 7.13% 2.64% 1.68% 1.62% Directors & Employees Others Citigroup % FII Holding increased from 12.45% at the time of allotment to 18.07% 1. Total Paid up capital (in no. of shares) as on 31 st March, 2006 (after exercise of Green Shoe Option) is 47,563, Others include Mutual Funds, Banks, HUF, Clearing Members, NRIs and Trusts Data as of March 31,

34 Share Price Performance (1) P rice (R s.) Apr-06 Fourth quarter and annual results above expectations 15-Feb 1-Mar 16-Mar 31-Mar 18-Apr 2-May 15-May S h a re s (M illio n ) 48.6% gain against Allotment price of Rs.162 per share Market Cap. : Rs. 11,446.2 mn Promoters holding : Rs. 8,162.3 mn Price (15/05/06) : Rs All time High : Rs All time Low : Rs Share Price Volume Weighted Average : Rs Share Price as traded on National Stock Exchange till May 15,

35 Media Companies Market Performance... Listed On Allotment Price (Rs.) Price 15/05/06 (Rs.) Market Capital (Rs. mn) P / E (1) (x) Jagran Prakashan 22-Feb , x ENIL 15-Feb , x HT Media 01-Sep , x NDTV 19-May ,640 NM Mid-day Multimedia 04-Apr , x Adlabs Films 10-Jan , x Zee Telefilms 25-Nov ,12, x Stock Market is Valuing expected robust growth in Indian Media Industry 1. Price / earning (P / E) multiple is calculated by dividing current price with reported LTM ordinary EPS Source: Economic Times, BSE 35

36 Future Business Outlook 36

37 Bright Future Outlook - ENIL Expand our footprint in radio broadcasting Rapid roll-out of 22 new stations Explore opportunities to become FM radio broadcasters in international markets Maintain market leadership in fast growing radio industry Continuously invest in brand building and programming innovation Launch Visual Radio through mobile phones Leverage our footprint to capture additional income Exploit additional revenue streams like Mirchi Activation 37

38 Bright Future Outlook - TIMPL Focus on Out-of-Home media growth Expansion of the network of out-of-home media sites managed by us Explore opportunities to lease sites on a long-term basis Introduce innovative technology and processes Establish long-term client relationships for Experiential Marketing Establish ourselves as a provider of innovative solutions Create own event properties at an appropriate time Focus on Life style, Fashion shows and Exhibitions 38

39 Radio Industry: Pending agenda News & Current Affairs FDI/FII cap Multiple frequencies Tradability Limitation on share transfer of main promoter for 5 years 39

40 Thank You

41 Back-ups 41

42 ENIL Consolidated: Key Financials FY 2006 (Above the Line Items) In Rs. mn Airtime Sales Event Income Out of Home Media Other Income FYE 2006 (Unaudited) 1, % of Revenue 83.5% 13.0% 1.2% 2.3% Total Income Production Expenses: License Fee Other Production expenses Administration and Other Exp. Employee Costs Total Operating Expenses EBITDA 1, % 4.6% 14.3% 32.4% 19.7% 71.0% 29.0% 42

43 ENIL Consolidated: Key Financials FY 2006 (Below the Line Expenses) In Rs. mn EBITDA Less: Depreciation Amortisation of Migration Fee Interest FYE 2006 (Unaudited) % of Revenue 29.0% 3.0% 5.8% 1.9% PBT % Taxation (1) % Effective Tax rate (%) 17.7% PAT % Note: 1. For ENIL tax calculated as per provisions of Section 115JB of Income Tax Act, 1961 (Minimum Alternate Tax), TIMPL tax is calculated at normal tax rates 43

44 ENIL: Key Financials FY 2006 (Above the Line Items) In Rs. mn FYE 2006 (Audited) % of Revenue FYE 2005 (Audited) % of Revenue Growth (%) Revenues 1, % % 56.7% Other Income % % 117.2% Total Income 1, % % 57.7% Production Expenses: License Fee % % (83.9%) Other Production expenses % % (4.9%) Administration and Other Exp % % 72.9% Employee Costs % % 51.0% Total Operating Expenses % % (7.3%) EBITDA % (122.5) (16.1%) NM Adjusted EBITDA (1) % % 62.3% Note: 1. Assuming license fee for FY 2005 under revenue share regime on like basis with FY

45 ENIL: Key Financials FY 2006 (Below the Line Expenses) In Rs. mn FYE 2006 (Audited) FYE 2005 (Audited) Growth (%) EBITDA (122.6) NM Less: Depreciation % Amortisation of Migration Fee 81.5 NA (100%) Interest % Preliminary Expenses w/off 0.3 (100%) PBT (179.2) NM Margin (%) 19.3% (23.5%) Taxation (1) NM Effective Tax rate (%) 15.3% NM PAT (179.3) NM Margin (%) 16.4% Note: 1. Tax calculated as per provisions of Section 115JB of Income Tax Act, 1961 (Minimum Alternate Tax) (23.5%) 45