SHEMAROONSE17 October 2019

Shemaroo Entertainment Limited has informed the Exchange regarding Investor Presentation

Shemaroo Entertainment Limited

Ref No.: SELjReg. 30 - LODR/Oct-19

October 17,2019

The Secretary,

National Stock Exchange of India Limited

Exchange Plaza,

Bandra-Kurla Complex

Bandra (EL Mumbai-400 051.

NSE Symbol: SHEMAROO

Dear Sir / Madam,

The Secretary,

BSE Limited

Phiroze Jeejeebhoy Towers

Dalal Street,

Mumbai-400 023.

Scrip Code: 538685

Re: SHEMAROO ENTERTAINMENT LIMITED -ISIN : INE363M01019

Sub: - Earn ings Presentation-

Intimation under Reg. 30(6) of SEBI (LODR), Regulations,

Please find enclosed herewith Earnings Presentation of Shemaroo Entertainment Limited for

the Quarter and half year ended September 30, 2019

Thi s is for your information and records.

The same is also disseminated on the website of the Company i.e. www.shemarooent.com

Thanking you, Yours faithfully, For Shemaroo Entertainment Limited

~~

Dipesfi Gosar Company Secretary & Compliance Officer Membership No.: A23755

Encl.: As above

SHEMAROO ENTERTAINMENT LIMITED Shemaroo House, Plot No. 18, Marcl Co - Op. Industria l Estate, Off Andheri Kurla Road, Andh eri (E), Mumbai - 400 059. Tel.: +91 - 22 403 1 9911 I Fax: +91 - 22 2851 9770 I Email: shemaroo@shema roo.com shema rooen t.co m I CIN: L67190MH2005PLC1 58288

SHEMAROO ENTERTAINMENT LIMITED

H1 / Q2-FY20 Earnings Presentation

2

At a Glance

Over 55 years experience as a Household Media Brand

One of the largest content houses with 3700+ content library

Offering content to most Bollywood services across leading platforms

Offering content across Bollywood, Devotional, Regional, Comedy, Kids, Health & Lifestyle, etc.

Strong understanding of Consumer's Entertainment Needs

Strong content offerings in multiple countries across the globe

REVENUE FY19 INR 5,678 Mn

EBITDA FY19 INR 1,578 Mn

PAT FY19 INR 830 Mn

NETWORTH FY19 INR 5,717 Mn

5 Year CAGR 16.50%

5 Year CAGR 19.67%

5 Year CAGR 25.00%

5 Year CAGR 26.79%

2

3

Overview

• Founded in 1962 as a book circulating library, today Shemaroo Entertainment Limited (Shemaroo) is a leading Indian content power house with a global

reach, headquartered out of Mumbai and employs over 750 people.

• Shemaroo is a pioneer in content aggregation and distribution in India and globally with offerings spread across Television, Mobile, Internet, OTT, etc.

Identifying that movies have the longest shelf life for television and other media content, Shemaroo pioneered the movie library syndication business by acquiring movie titles from producers and distributing it to broadcasters and other media platforms.

• Shemaroo has grown multifold over the years, developing excellent relationships across the media industry value chain, to become one of the largest

organised players in a fragmented industry.

• The company’s digital business contribution has grown from less than 10% in FY14 to over 30% in FY19.

Operational Revenue (INR Mn) and EBITDA Margin (%)

FY19 Revenue Distribution (INR Mn)

26.69%

24.30%

26.86%

28.71% 29.96% 29.16% 27.79%

1,305

1,718

20.59%

923

635

373

246

2,387

2,861

175

1,976

3,113

3,332

3,586

3,960

1,038

1,896

FY13

FY14

FY15

FY16

FY17

FY18

FY19

H1-FY20

Traditional (INR)

Digital (INR)

EBITDA Margin (%)

Digital media 30%

Traditional Media 70%

3

4

H1 / Q2-FY20 HIGHLIGHTS

4

5

H1 / Q2-FY20 Key Financial Highlights

Q2-FY20 performance (Consolidated):

H1-FY20 performance (Consolidated):

• • • • • •

Revenue from Operations: INR 1,503 Mn EBITDA: INR 285 Mn EBITDA Margin: 18.96% Net Profit: INR 195 Mn Net Profit Margin: 12.97% EPS: INR 7.17

• • • • • •

Revenue from Operations: INR 2,934 Mn EBITDA: INR 604 Mn EBITDA Margin: 20.59% Net Profit: INR 356 Mn Net Profit Margin: 12.13% EPS: INR 13.11

Divisional Breakup (Consolidated):

INR Mn

Q2-FY20

Q2-FY19

YOY Growth

H1-FY20

H1-FY19

YOY Growth

Digital Media

Traditional Media

Income from Operations

551

952

1,503

456

1,177

1,633

20.8%

(19.1)%

(8.0)%

1,038

1,896

2,934

845

2,022

2,867

22.8%

(6.2)%

2.3%

5

6 Key Operational Highlights • ShemarooMe:

1) Launched 52 weeks 52 premiere service 2) Made available on MiTV and Cloudwalker TV 3) Partnered with Ixigo and Dainik Bhaskar

Launched 2 new pre-loaded audio speakers - Ganesha Bhajan Vaani and Shri Krishna Bhajan Vaani

Launched 2 new services on DTH:

1) Telugu service on Airtel, Dish and d2h in August 2019 2) Punjabi service on Dish and D2h in August 2019

• Crossed 28 Mn subscribers on our YouTube channel ‘FilmiGaane’; the channel became the 5th most

subscribed channel in India and 36th in the world

• The economic situation continued to be sluggish resulting in weak business sentiment and slowdown in advertising spends. This, along with ongoing investments by Shemaroo in new products, services, geographies and people, has affected the margins

6

7 Key Operational Highlights

YouTube Monthly Views Graph till September 2019:

7

8

Q2-FY20 Consolidated Income Statement (Ind-AS)

Particulars (INR Mn)

Revenue from Operations

Total Expenses

EBITDA

EBITDA Margin (%)

Other Income

Depreciation

Finance Cost

PBT

Tax

PAT

Minority Interest & Share of profit/ (loss) in associate company

PAT after adjustments

PAT Margin (%)

Comprehensive Income

Total Profit including Comprehensive Income( Net of tax)

EPS (INR)(not annualised)

Q2-FY20

Q1-FY20

Q-o-Q

Q2-FY19

Y-o-Y

1,503

1,218

285

1,430

1,111

319

5.1%

9.6%

(10.7)%

1,633

1,207

426

(8.0)%

0.9%

(33.1)%

18.96%

22.31%

(335) Bps

26.09%

(713) Bps

6

20

56

215

21

194

1

195

9

14

58

256

92

164

(2)

162

(33.3)%

42.9%

(3.4)%

(16.0)%

(77.2)%

18.3%

NA

20.4%

-

13

56

357

127

230

-

230

NA

53.8%

NA

(39.8)%

(83.5)%

(15.7)%

NA

(15.2)%

12.97%

11.33%

164 Bps

14.08%

(111) Bps

-

195

7.17

-

162

5.94

NA

20.4%

20.7%

-

230

8.45

NA

(15.2)%

(15.1)%

8

9

H1-FY20 Consolidated Income Statement (Ind-AS)

Particulars (INR Mn)

Revenue from Operations

Total Expenses

EBITDA

EBITDA Margin (%)

Other Income

Depreciation

Finance Cost

PBT

Tax

PAT

Minority Interest & Share of profit/ (loss) in associate company

PAT after adjustments

PAT Margin (%)

Comprehensive Income

Total Profit including Comprehensive Income( Net of tax)

EPS (INR)(not annualised)

H1-FY20

H1-FY19

Y-o-Y

2,934

2,330

604

2,867

2,051

816

2.3%

13.6%

(26.0)%

20.59%

28.46%

(787) Bps

14

35

113

470

112

358

(2)

356

2

27

118

673

248

425

-

425

12.13%

14.82%

-

356

13.11

(5)

420

15.64

NA

29.6%

(4.2)%

(30.2)%

(54.8)%

(15.8)%

NA

(16.2)%

269 Bps

NA

(15.2)%

(16.2)%

9

10 H1-FY20 Consolidated Balance Sheet (Ind-As)

Equity and Liabilities (INR Mn)

H1-FY19

H1-FY20

Assets (INR Mn)

H1-FY19

H1-FY20

Shareholders Fund

Share Capital

Other Equity

Non Controlling Interest

Total Equity

Non Current Liabilities

Long Term borrowings

Lease liability

Deferred tax liabilities (Net)

Long tem provisions

Total Non-Current Liabilities

Current Liabilities

Short Term Borrowings

Trades payables

Other Financial Liabilities

Other Current Liabilities

Short Term Provisions

Current Tax Liabilities (Net)

Total Current Liabilities

Total

272

5,032

(38)

5,266

2

-

36

16

54

272

5,747

(41)

5,978

3

23

24

41

91

Non Current Assets

Fixed Assets

Property, Plant & Equipment

Intangible assets

Intangible assets under development

Right of use Assets

Investments

Long Term Loan and Advances

Other Financial Assets

Other Non Current Assets

Total Non-Current Assets

1,669

2,136

Inventories

Current Assets

466

139

27

26

124

2,451

7,771

490

185

14

8

116

2,949

9,018

Trade Receivables

Cash and cash equivalents

Short Term loan and advances

Prepayments

Other Current Assets

Total Current Assets

Total

319

14

-

-

65

-

1

65

464

5,661

1,409

12

5

-

220

7,307

7,771

324

11

2

22

89

1

1

45

495

6,794

1,410

27

6

-

286

8,523 10 9,018

11

Shemaroo In Digital Media

Q2-FY20 Digital Media Performance (INR Mn)

456

551

Shemaroo was one of the early Indian media companies to syndicate its library in the high growth digital media platforms, thereby gaining early mover advantage

The company caters to all types of revenue models like subscription, pay per transaction, advertisement 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 suited for the digital media platforms

Q2-FY19

Q2-FY20

H1-FY20 Digital Media Performance (INR Mn)

Digital Media Presence

Internet and OTT

• Shemaroo has agreements with various internet video platforms like YouTube, Hotstar, Reliance Jio, Apple iTunes, Google Play, YuppTV, etc.

Mobile Value Added services (MVAS) / Mobile Internet

• The company has agreements with major telecom operators, namely Airtel, Vodafone, Idea, etc. • Shemaroo distributes imagery, videos, full songs, live streaming etc. under MVAS through both operator branded portals as well as its own branded portals

1,038

845

H1-FY19

H1-FY20

11

12 Shemaroo in Traditional Media

Traditional Media Includes – Television Syndication, Overseas Distribution and Others

Television Syndication

• Shemaroo has a diverse content library which it syndicates rights to various Satellite Channels, Cable &

Terrestrial Networks

• Considering the vast and diverse library of Shemaroo, it can be easily assumed that most broadcasting

channels would have some content syndicated from Shemaroo at sometime or the other

Subscription Based Services

In partnership with major DTH and Cable operators, Shemaroo operates subscription-based, ad-free content services across various genres like Movies, Devotion, Comedy and Regional

TV Syndication Platforms

• Predominantly consists of Hindi films

• This includes Movie Channels, Kids Channels, Music Channels, News Channels

Satellite Television

etc.

• Enter into exclusive agreements for a film or package of films with a particular

group of movie channels for a specified period of time

Q2-FY20 Traditional Media Performance (INR Mn)

1,177

952

1300

1200

1100

1000

900

800

700

600

500

Q2-FY19

Q2-FY20

H1-FY20 Traditional Media Performance (INR Mn)

Terrestrial Television

Cable Television

• The company also licenses content for broadcasting on terrestrial television

2,022

network

1,896

• Revenue stream, wherein an increasing number of cable operators are

licensing rights of Shemaroo’s content

H1-FY19

H1-FY20

12

13 Consolidated Income Statement (Ind-As)

Particulars (INR Mn) Revenue from Operations

Total Expenses

EBITDA

EBITDA Margin (%)

Other Income

Depreciation

Finance Cost

PBT

Tax

PAT

Minority Interest & Share of profit/ (loss) in associate company

PAT after adjustments

PAT Margin (%)

Comprehensive Income

Total Profit including Comprehensive Income( Net of tax)

EPS (INR)(not annualised)

FY17

FY18

FY19

4,255

2,980

1,275

29.96%

30

43

324

938

342

596

18

614

14.43%

-

614

22.60

4,891

3,465

1,426

29.16%

12

51

307

1,080

367

713

(1)

712

14.56%

3

715

26.18

5,678

4,100

1,578

27.79%

18

56

256

1,284

457

827

3

830

14.62%

3

833

30.52

13

14 Consolidated Balance Sheet (Ind-As)

Equity and Liabilities (INR Mn)

FY18

FY19

Assets (INR Mn)

FY18

FY19

Shareholders Fund

Share Capital

Other Equity

Total Equity

Non controlling interest

Non Current Liabilities

Long Term borrowings

Deferred tax liabilities (Net)

Long tem provisions

Total Non-Current Liabilities

Current Liabilities

Short Term Borrowings

Trades payables

Other Financial Liabilities

Other Current Liabilities

Short Term Provisions

Current Tax Liabilities (Net)

Total Current Liabilities

Total

272

4,662

4,934

(36)

21

36

16

73

1,858

181

135

28

15

125

2,342

7,313

Non Current Assets

Fixed Assets

Property, Plant & Equipment

Intangible assets

Investments

Long Term Loan and Advances

Other Financial Assets

Other Non Current Assets

Total Non-Current Assets

Current Assets

Inventories

Trade Receivables

Cash and cash equivalents

Short Term loan and advances

Other Financial Assets

Other Current Assets

Total Current Assets

Total

272

5,445

5,717

(42)

4

34

32

70

1,969

298

63

68

8

151

2,557

8,302

323

10

67

-

3

31

434

5,297

1,406

13

4

-

159

6,879

7,313

306

10

65

1

3

58

443

6,027

1,590

16

6

8

212

7,859

8,302

14

15

Historical Consolidated Financial Charts

Operational Revenue* (INR Mn)

EBITDA (INR Mn) and EBITDA Margin (%)

5 Year CAGR 16.50%

5,678

4,891

4,255

3,751

3,234

2,646

24.30%

26.84%

5 Year CAGR 19.67%

28.69%

29.96%

29.16%

1,426

1,275

27.79%

1,578

1,076

868

643

2,000

1,600

1,200

800

400

-

FY14

FY15

FY16

FY17

FY18

FY19

FY14

FY15

FY16

FY17

FY18

FY19

Net Worth (INR Mn) and ROCE (%)

5 Year CAGR 26.79%

18.60%

19.60%

19.20%

18.10%

3,174

3,649

4,232

1,745

20.31%

19.96%

5,717

4,932

7,000

5,250

3,500

1,750

-

900

600

300

-

23.00%

20.00%

17.00%

14.00%

11.00%

8.00%

5.00%

PAT (INR Mn) and EPS (INR)

5 Year CAGR 25.00%

26.18 712

22.60

614

19.18

521

17.35

409

13.68

272

30.52

830

FY14

FY15

FY16

FY17

FY18

FY19

FY14

FY15

FY16

FY17

FY18

FY19

* Note: FY17 to FY19 numbers are as per IND-As

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

35

30

25

20

15

10

5

0

15

16

Capital Market

40% 30% 20% 10% 0% -10% -20% -30% -40% -50%

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19 Mar-19

Apr-19

May-19

Jun-19

Jul-19

Aug-19

Sep-19

SHEMAROO

SENSEX

Price Data (As of 30th September, 2019)

Face Value

Market Price

52 Week H/L

Market Cap (INR Mn)

Equity Shares Outstanding (Mn)

1 Year Avg. Trading Volume ('000)

INR

10.0

243.1

527.9/233.0

6,608.0

27.2

13.2

Share Holding Pattern as on 30th September, 2019

Public 13.77%

FII 20.12%

Promoters 65.82%

DII 0.29%

16

DISCLAIMER

Shemaroo Entertainment Limited

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Shemaroo Entertainment Limited (“Company” or “Shemaroo”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

For further information please contact our Investor Relations Representative:

Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: shemaroo@valoremadvisors.com

17

THANK YOU

18

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