Reliance MediaWorks
February 2011
Disclaimer
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Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those
in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its
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by or on behalf of the Company.
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applicable exemption from registration
2
Reliance ADA Group stepped into the company in FY 2006
FY 2006
Film prod
14%
Film
processing
53%
Cinemas
33%

Operations in Mumbai only

8 theatres (32 screens)

14 professionals with > 10 years’ experience
Revenues: Rs 1,250 million
(USD 26.6 million)
FY 2010
FY 2006
Film processing
DI
13%
2% Eqp rent
2%
Restoration
6%
TV prod
5%
Cinemas
72%
New business
areas to
incrementally
add to revenues
in the coming
years

New businesses added, to Yield further results
FY 2011 onwards

Market leader in every business

Operations in 118 cities, 5 countries

156 professionals with > 10 years’ experience
Revenues: Rs 6,720 million
(USD 143 million)
82% from businesses created in last 4 years
FY 2010 (60% CAGR over 4 years)
Projects under implementation in 2011:

Studios, TV Post
56% from businesses in last 2 years
3
Performance in FY11
YTD Dec’10

FY 10 YTD

Studio operational with 70,000 sq ft

BPO operational with 90,000 sq ft
Revenues: Rs 7095 million
(USD 157 million)
Revenue and EBIDTA have increased as compared to last year.
With the recent commissioning of the Studios and the BPO facility, we expect film and media services division to be a
substantial contributor to our business portfolio
4
The growth opportunity is very large….
Films

Net Box Office Collection (“NBOC”) of top 50 films has gone up by 32%, to Rs. 15,050 million (USD 334 Million) in CY
2010 from Rs. 11,440 million (USD 254 million) in CY 2008

Big Budget films (>500 prints) – 48 in CY 2010 versus 30 in CY 2008

Average cost of production of big budget films has increased by more than 50% over the last 5 years
Television

Penetration in TV households 60% in FY 2010 versus 50% in FY 2006

460 channels in FY 2010 versus 120 channels in FY 2004

The number of big format shows has increased substantially over the last 5 years
5
Comprehensive presence across production value chain – Film, TV and Ad Commercials
6
Film & Media Services (Domestic)
Services Suite
Production services
Film Post
Studios
Lab: Mumbai, Chennai, Kolkata
TV Broadcast
Digital Intermediate
Film cameras
Promos
Lights, Grips
India VFX
Set Design & Construction
Sub-titling
Digital Cinema Mastering
8
200,000 sq ft state of the art Studio facility being built at Film City
Picture: Jan 5, 2011

Phase I (70,000 sq ft with 3 sound stages) completed recently

Phase II and III expected to be ready by May
and August 2011
70,000 sq. ft. – Jan 2011 launch
Phase I

India's first and only full service Studio Complex designed by LA architects and built to Hollywood standards

Design includes stringent fire protection, detection and fire fighting facilities adhering to LA County Fire Safety Norms

SOPs being developed by LA consultants based on Hollywood Best Practices for studio operations

Experienced expat from LA assisting an Indian team of professionals in implementing SOPs and setting up operations

USPs


Facility for films, TV shows and TV commercials

Largest, fully air-conditioned facility in Mumbai

Built-up area of 2 lakh sq ft over a 7 acre property in Film City

Clear internal height of 58 ft

8 silent sound stages of different sizes
Studio facility is a natural extension to Production Services portfolio
9
Film Post

Typical film goes through the film post value chain as – Cans
Digital)

Incremental services FY 2010 onwards lead to increased wallet share
DI
VFX
Promos
Prints (Analogue and
2008
2009
2010
2011 (Half
Year)
140
161
163
89
19,777
26,280
23,957*
14,502
141
163
147
163
No. of digital prints
-
-
1,069
1,286
No. of films done for DI
-
34
45
34
No. of promos
-
-
-
6
No. of films
No. of analogue prints
No. of analogue prints / film

Focus is to increase share of wallet

New businesses – DI and VFX – leverage existing clients and add significantly to profitability

Cross Selling opportunities tapped
* 2010 impacted due to strike
10
Production Services – Equipment Rental Solutions
RMWL is associated with most of the popular reality shows, televised events and films - 33 programmes on general
entertainment channels in India, 49 televised events since April 2009. As of December 31, 2010; RMWL rented out film
equipment for 83 films.
Shows
Events
Films
Kaun Banega Crorepati
Filmfare Awards
Dabangg (Arbaaz Khan Productions)
Bigg Boss
Femina Miss India
Rajneeti (Prakash Jha Productions)
Jhalak Dikhla Ja
Mirchi Awards
Ravana (Madras Talkies)
Nach Baliye
Star Parivaar Awards
What’s Your Rashee (Ashutosh Gowarikar Prod)
India’s Got Talent
Star Screen Awards
Aisha (Anil Kapoor Films)
Pati Patni Aur Who
Standard Chartered Mumbai Marathon
Break Ke Baad (Kunal Kohli Productions)
Rakhi Ka Swayamvar
Airtel Delhi Marathon
Ra – One (Red Chilies Entertainment)
Rahul Dulhaniya Le Jayega
Sunfeast Bangalore Marathon
Khelein Hum Jee Jaan Se (Ashutosh Gowarikar Prod)
Dus Ka Dum
Economic Times Awards
Tees Maar Khan (Three’s Company Prod)
Sacch Ka Samna
Brand Equity Awards
Khatta Meetha (Seven Arts International)
11
Film & Media Services (International)
International Business


Distinct business lines

Creative Services – VFX, 2D to 3D conversion, Animation, CGI

Media Services BPO – Restoration, Archival, Migration, Encoding, Transcoding, Compression &
Authoring, Standards & Format Conversion
All businesses exhibit strong entry barriers in terms of

Technology

Brand & Credibility

Manpower training

Infrastructure quality
Top Trends in the Industry:
Trends
Key Drivers

Alternate platforms: TV, Internet and mobile

Technology

Demand for high-definition images

Skill sets

3D

Front-end/ Development centers

VFX / Animation / CGI

Scale

Digital platform – one world
13
We have built global capabilities
Presence
London
New York
Los Angeles
Tokyo
Mumbai
Pune Kolkata
Chennai
Technology
Imaging
QC & Operations Centers
LA
RMW Burbank
(Lowry)
3D
London
Tokyo

RMW Imaging ops
RMW VFX ops
RMW lab ops (i-lab)
RMW VFX ops
Large Delivery Centers
Image processing
450 people, fully operational
2D to 3D
450 people fully trained
VFX + Animation
300 people, fully operational
Front-end with
Imagica
1,200
December 2010 established relationship with Russian World Studios and OGK in Russia
14
Competitive advantage through proprietary tools
RMW has developed and now owns proprietary imaging tools which facilitate :

Image Processing

Standard Definition to High Definition

16 mm to High Definition

3D Alignment
These tools are currently deployed in London, Burbank and Mumbai, and are internationally benchmarked
Leverage the front-end relationship with clients at Burbank :

David Fincher : Zodiac, Benjamin Button, Social Network

Disney : 7-year old relationship, handling Animation Classics such as Fantasia, Alice in Wonderland, Winnie the
Pooh trilogy, Cinderella, Jungle Book, Peter Pan, 101 Dalmatians, Sleeping Beauty, Snow White, Pinocchio

James Cameron : Avatar, 4K restoration of Titanic

4 projects under active discussions (under NDA)
November 2010: RMW among 4 companies to receive the Creativity and
Innovation Hollywood Post Alliance Award
15
Exhibition
India – a consumption driven economy
•
Population: 1.2 billion
→ increasing urbanization
→ relatively large youth population
→ 43% of population < 25 years of age; 36%
between 25-50 years
•
GDP Growth (Real): ~6.5%
→ second highest growing economy
Key driver of growth is to be consumption
•
Consumption Centres
→ spread over 50 cities
•
GDP Size (PPP adjusted): US$ 3 trillion
→ fourth largest economy in the world
•
Rising Propensity to Spend
→ Recreation and education spend doubled
from Rs 1,800/- to Rs 4,120/- ; expected to
further double to Rs 8,400/- in 4 years
Deep Domestic Demand.. Huge growth potential
17
Growing opportunity for multiplex business

Box-office collection of Rs 68,500 million in CY 2009, growing @ 8%

Growing size of big budget movies, a key revenue driver for multiplexes
Top 10 films NBOC (Rs million)
No. of big budget releases

2008
Increase
8,080
6,140
32%
48
35
37%

Print size of big budget movies has grown significantly

Multiplex contribution has gone up from 10% in CY 2006 to around 25 percent of the total domestic theatrical
revenues for the overall Indian film industry and as much as 60% for Hindi films

Hollywood : a new source of revenue stream, has grown to 5.5% of Indian box-office from 2% in 2006
Low screen density in top cities (screens per million population)
Mumbai: 23
Chennai: 5
Surat: 12
Lucknow: 17

2010
Delhi: 13
Bangalore: 21
Kanpur: 15
Nagpur: 18
Thane: 14
Ahmedabad: 19
Pune: 16
Indore: 13
Kolkata: 8
Hyderabad: 6
Jaipur: 8
Ludhiana: 11
Denmark: 61
Belgium: 43
Italy: 52
UK: 30
International benchmarks (screens per million population)
US:
117
Spain: 46
France: 77
Germany: 45
18
Multiplex business : benchmarked globally
India
(multiplex)
India
USA
Canada
Australia
Singapore
France
Admits (million)
81
3,100
1,420
128
91
19
201
Population (million)
120
1,140
307
33
21
5
62
Movie Freq (yearly)
0.68
2.7
4.6
3.8
4.2
3.9
3.2
ATP (USD)
$2.6
$0.5
$7.5
$6.9
$9.4
$6.2
$8.5
BO (million USD)
$208
$1,522
$10,650
$882
$849
$118
$1,704
No. of cities
106
CY 2009
Multiplex penetration (admits as a % of population) and spend per head expected to grow : in sync with international
benchmarks – as propensity to spend increases in these cities
19
BIG Cinemas’ network in India
Schematic representation

268 screens

81 cities
% contribution
to all-India Hindi
box-office
BIG cities
BIG
screens
Bombay
40%
21
107
Delhi UP
20-22%
12
43
East Punjab
7.5 -9%
6
22
Rajasthan
5-5.5%
5
9
CP
5-5.5%
10
18
Nizam & Andhra*
5-5.5%
11
26
Bengal
4.5-5%
1
3
Mysore
3.5-4.5%
4
9
3.5%
3
10
TN & Kerala**
1-1.5%
8
21
Assam, Orissa
1.5%
-
-
100%
81
268
Circuit
CI
* - Additionally serves the Telugu market
** - Additionally serves the Tamil market
21
Operating performance
Growth in key parameters over last 2 years - India
Class
Admits (million)
ATP (Rs.)
SPH (Rs.)
Financial Year
Metro/Tier 1
Tier 2
Tier 3/4
2009
8.0
6.7
8.4
2011 (9 months)
6.9
6.7
10.6
% increase
16%
34%
70%
2009
144
90
49
2011 (9 months)
163
95
56
% increase
13%
5%
13%
2009
34
20
12
2011 (9 months)
44
26
19
% increase
30%
26%
60%
Apart from current growth, Tier 2/3 cities represent significant opportunity for growth in the next 3-4 years
23
Growth in key parameters over last 2 years - India (cont.)
Parameter
Current Period
YTD Dec 10
Previous Period Apr
Dec 09
Growth
Admits (million)
24.32
19.79
23%
Same Store Basis*
Admits (million)
18.16
17.27
5%
ATP Comparable properties (Rs.)
98.82
90.33
9%
SPH Comparable properties (Rs.)
27.63
22.32
24%
We have registered significant growth – in ticket prices and spend on F&B
* Same Store refers to cinema theatres which have been operational for entire 9 months in the period mentioned
24
Content flow and programming

Big releases

5 big banners in Hindi (Yashraj, BIG, Dharma, UTV, Eros) slated to release 20 films in next 18 months

Around 13 high-value Hollywood / 3D movies expected in next 12-15 months

A-list stars have 14 films on floor

Neighborhood centric content selection, mapping and scheduling

Regional language films (Gujarati, Marathi, Bhojpuri etc.)

Introduced ‘uninterrupted’ English film shows ; subtitled English films
25
Customer experience : mapping key touch points
screens
F&B
box office
online
2
exit
foyer
feedback
concession
screen
entrance
1
5 key
touch points
washrooms
seating
lounge
3
welcome
foyer
baggage
drop- off
security
frisking
box office
typical customer walk-through
26
Customer experience : innovative formats
27
Awards won over the years

Cine Diner won the award for Most Admired Innovative Concept of the Year at India Retail Forum 2010

Cine Diner also won 2nd place at the IAD – Interior & Architecture Awards 2009 in the Best Interior Design Hospitality category

‘Most Admired Retailer in Entertainment’ at the India Retail Awards 2009

‘International Exhibitor of the Year’ at the prestigious ‘CineAsia 2008’ at Macau in December 2008

‘Retailer of the Year’ in Entertainment for the second consecutive year at the India Retail Summit in 2007

‘Most Admired Retailer in Entertainment’ at the India Retail Awards 2007
28
Mystery audits

Key audit impact areas: Exterior, Box Office, Lobby, Auditoriums, Concession and Restrooms

Carried out by external agencies ( which specialize in hospitality industry )

Audit score mapped against other cinema chains

Periodicity – once in 2 months

Action taken – theatre managers to provide action taken report (ATR) to COOs
29
Brand Connect
WOMEN’S DAY (8th March’10 )
MOTHER’S DAY (9th May’10 )
INDIAN INDEPENDENCE DAY ( 7-15th Aug’10 ) – global initiative
WORLD ENVIRONMENT DAY
(5th June’10 ) – global initiative
30
Marketing : Grassroots , promotions, contests…
3 + 1 Ticket combo offer
(Oct 10 to Mar 11)
Customer Loyalty program
(launch Dec’10)
Launched across 30 cinemas
Hot Ticket festival offer (May’10)
• 75,000 Unique registrations
• Sponsored 1st prizes – i10 car
Prepaid movie ticket vouchers
(Dec’10)
SURE SHOT Winner (Launch Sept’10)
• Guaranteed prize won for every transaction at BIG Cinemas
• Prizes are coupons/vouchers from local retailers (neighborhood
centric)
31
Retail micro-orientation
Daily sales plan



Cinema-wise weekly admits plotted from
release schedule:

Categorization of movies

Historical performance of category
Translated to daily target footfalls
Modified every week for next fortnight,
based on:

Actual release schedule

Verdict of film
Customer-oriented pricing

Movie specific pricing
Eg, Tees Maar Khan, Gol3 Idiots,
Kites, etc

Day-part pricing

E.g. R-Mulund:

Morning: Rs 70/-

1:00 p.m.: Rs 110-130/-

Evening: Rs 175-200/-

Special pricing of Rs 50/- and
Cost efficiency

Electricity management (lights,
A/C)

Seasonal staffing (130 increased
from Diwali to New Year)

Micro-monitoring of yield
efficiency (Popcorn, Pepsi) – to
reduce spoilage and wastage
Rs 150/
Food price increase by Rs
10-15/- on big week-ends
32
Path to revenue growth and profitability drivers : F&B
F&B
Increasing SPH
- Pepsi deal
- Movie Munchies product mix :
kathi rolls / salads/ fresh sandwiches / candy floss , etc
- Combo deals :
Value meals / 3 product combos, etc
- Seat serve:
Mobile Vendors
- Kids special
Combos / merchandise
33
Off Screen Advertising
Auditorium doors
Washrooms
Lobby Lounge
Signage
Exit Passage
Stair Case
34
Exhibition overseas
International Collections for Indian films
Language
US
UK/ Europe
Far East
Others
Hindi
30%
30%
3%
37%
Telugu
85%
2%
5%
8%
Tamil
7%
20%
55%
18%
Exhibition – overseas
205 screens in US
72 screens in Malaysia
Tamil
25%
Indian
35%
Others
4%
Chinese
11%
Europe
 Programming model with Pathe in
Netherlands since June ‘09
 Screen branding
 40% increase in footfalls
Hollyw
ood
65%
Malay
14%
English
46%
 Now expanding to France (Paris

BIG chain:
Play mix of content

35% of Hindi

Opened market beyond KL

70% of Tamil / Telugu

SPH highest among chains

Account for 30-33% of Tamil GBOC
and Lyon) with Pathe and Belgium
(Brussels and Antwerp) with
Kinepolis
Need for theatrical presence in US

Total 200 screens: 55 India focused screens, balanced with 145 Hollywood screens (managed locations)

Strong Indian community – 2.6 million population + H1, L1, students
 Including other Asians (Pakistani, Bangladeshi) aggregates approximately 3.6 million

US accounts for 30 to 33 % of overseas theatrical revenue for Hindi movies (Rs 2,000 million)

US cinema chains reluctant to carry Indian content :
 Hollywood movies are first priority
 Cultural mismatch – unable to handle Indian crowds

Indian movies get second-rung theatres :
 Poor customer experience
 Deals with distributors on MG basis – substantial under-reporting
 Highly unorganized distribution pattern for Tamil and Telugu movies
36
BIG Cinemas in US
Canonsburg
Madisonville
Pigeon Forge Greenville
New York
New Jersey
Laughlin
Chicago
Freemont
Cleveland
San Jose
Herndon
Norfolk
Falls Church
Decatur
Los Angeles
Corona
Kansas
Norcross
Cherokee
Greenacres
Palm Bay
BIG Cinemas in US

Growth in Box Office YTD Dec’10 : 10% increase since last year

BO contribution
No
1
3
2
Movie
Dabangg
Ravanan - Tamil
Market share
27%
56%
Total Prints
61
34
BIG Prints
9
10
Enthiran - Tamil
54%
54
9

Promotions : Movie specific (star premiers, sweepstakes, social media) and Brand specific (Everyone is a Winner !)

Events and Festivals : Green your lifestyle, Independence Day, Diwali Talent Hunt

Innovative marketing tools : Print@home, Online Polls, Tag it !
Unlocking the advertisement potential

Indian Diaspora median income higher than average American or any other ethnic community

Focused access, understanding and reach to community provides greater value to advertisers


Example Spanish, African-American etc. which are now mainstream focus
Our focused consumer targeting from this year has begun yielding revenues
38
Exhibition – Malaysia
72 screens in Malaysia
Tamil
25%
Others
4%
Chinese
11%
 Play mix of content
 Opened market beyond KL
 Account for significant % of Tamil GBOC
Malay
14%
English
46%
39
BIG Synergy
Snapshot of shows

Leader in original format, studio based, interactive shows

Cutting edge shows : Kaun Banega Crorepati, Dus Ka Dum, Jhalak Dikhhla Jaa – Dancing with the Stars, Kya Aap
Paanchi Paas Se Tez Hain, Aap Ki Kacheri and India’s Got Talent

Winner of 2009 Indian Telly Awards for “Best Production house of the year “
41
Exhibition overseas
International Collections for Indian films
Language
US
UK/ Europe
Far East
Others
Hindi
30%
30%
3%
37%
Telugu
85%
2%
5%
8%
Tamil
7%
20%
55%
18%
Thank you
205 screens in US
72 screens in Malaysia
Tamil
25%
Indian
35%
Others
4%
Chinese
11%
Europe
 Programming model with Pathe in
Netherlands since June ‘09
 Screen branding
 40% increase in footfalls
Hollyw
ood
65%
Malay
14%
English
46%
 Now expanding to France (Paris

BIG chain:
Play mix of content

35% of Hindi

Opened market beyond KL

70% of Tamil / Telugu

SPH highest among chains

Account for 30-33% of Tamil GBOC
and Lyon) with Pathe and Belgium
(Brussels and Antwerp) with
Kinepolis