Presentation on Adlabs

8/12/2019 Presentation on Adlabs

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International

Marketing


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Agenda

1.Adlabs2.Highlights

3.Key Players

4.Established Leader

5.International Portfolio6.Footprints in international marketing

7.Business

a. Production & Distribution

b. Television

c. Films

d. Big FM Radio

8.SWOT Analysis9.Future Plans


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Adlabs Films Limited, a member of the Reliance Anil Dhirubhai Ambani

Group, is Indiasfastest growing film and entertainment services company

Adlabs has a dominant and comprehensive presence in Film Services:

Motion Picture Processing and DI, Film Restoration, Digital Mastering,

Studios and Equipment rentals

Adlabs Films also operates India's largest cinema chain with about 400

screens spread across India, US and Malaysia. It has a significant presence

in the film distribution space with a nationwide presence across India aswell as offices in London, New York, Los Angeles and Malaysia

Adlabstelevision venture, Synergy Adlabs, is among the top players in the

television programming industry

About Adlabs


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Adlabs Cinemas will be recipient of International Exhibitor of the

Year 2008 by CineAsia 2008 at Macau in December 2008

Only Lab accorded Kodak Image Care certificate for the 4th

consecutive year

1stin Asia : Adlabs facilities comprising Entire Lab, DI Lab and Digital

cinema mastering facility accredited by Federation Against Copyright

Theft (FACT), UK.

Adlabs financial rating continues to be highest grade at A1+ by ICRA,

the only company in the media and entertainment space

FM radio business to be de merged effective April 1, 2008 consequent

to the Board decision

Highlights


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Contd.

Period Jul Sep 08 Jul Sep 07 Apr Jun 08 * YOY QOQ

Revenue From Operations 216.59 144.99 178.08 49% 22%

EBIDTA from operations 38.07 13.76 29.38 177% 30%

Financials

Rs. In Crores


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Key Players

Domestic

PVR cinemas

Inox E-cinemas

Shringar cinemas

Wave cinemas


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Established leadership in Cinemas


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400+ screens as of date : 186 screens in India;. 200+ screen in US, 36

screens in Malaysia & 6 screens in Mauritius

Adlabs Cinemas contribution to Box office of large films

India : 10% to 14%

US : 25 to 40%

Adlabs is Indias first cinema chain to show both 3D & 6D format;

premiered 3D Hollywood blockbuster Journey to the centre of the Earth in

BIG Digital 3D for the first time at Adlabs cinemas, Vashi, Navi Mumbai

In line with the Reliance ADA Groups philosophy for a single

monolithic consumer entertainment brand BIG, all Adlabs cinemas will

be re-branded BIG cinemas from October 28, 2008

Contd


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Taking existing cinema destinations, remodeling them andtransforming customer experience through contemporary

ambience complemented with service

Projection, sound & experience standards are consistent allacross the country

Over 35 projects completed

Has seen over 100% increase in occupancy, ticket prices,

footfalls along with more efficient programming

Contd


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Moreshwar, Pen (Maharashtra)

Priya, Tenali (Andhra Pradesh)

The change Adlabs brings


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Natraj, Kota ( Rajasthan)

Gemini, Warangal (Andhra Pradesh)

Contd


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World-wide clusters of South Asians (Persons of Indian

Origin), with strong affinity to Indian entertainment offers an

opportunity to Adlabs

Over 200 screens in US, coast to coast

Over 51 screens in Malaysia

6 screen in Mauritius and signed up an upcoming mall

Will soon be the only multiplex present in Kathmandu, Nepal

Adlabs international exhibition portfolio


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Movie Theatre Penetration

PIO

Presence

High Low

High

Low

Myanmar (Burma)United

Kingdom

United

States

Medium

Malaysia

Canada

South Africa

Kenya

Greece

Guyana

Spain

Adlabs has a footprint in the markets of US andMalaysia


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CINEMA

DISTRIBUTION

TELEVISION

SERVICES

PRODUCTION

Business


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Production & Distribution


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Co-produced Singh is King with Vipul Shah, which

has been declared a huge success

Successfully distributed BIG Pictures Rock On across

in India and Overseas

Other features presented include : Love Story 2050 ;Punjabi Film Mera Pind in India in select territories

and Overseas

P&D


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Television


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Produces original format, studio based, interactive and fiction shows

(a leader in non fiction)

Licensee in international formats: (Who Wants to be a Millionaire,

Dancing with the Stars, Americasgot Talent and Are you smarter than

a fifth grader)

Fiction, Regional content, Talent Hunt and Lifestyle programming

will be the additional drivers for the immediate future along with ourestablished share of new big ticket non fiction channel drivers

Over 15 shows lined up across 8 channels with approx. 800 Hrs of

programming in FY 09/10.

Synergy Adlabs is a key content player
http://sify.com/jhalak/


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FilmServices


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Adlabs has built competencies in handling film : being leveraged to cover a range of services

Film to any device : Building presence across the value chain

TV/

DTH/ IPTV

Mobile


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Lab and Digital Intermediate

Processing Lab

Largest facility in India with 150 clients and 73% share of

the Hindi film market

Presence in Mumbai, Chennai and Kolkotta

Mumbai has won 8 national awards including last 3 awards

in a row

Certified by Kodak Image Care 4 years in a row


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Contd

DI Lab

DI facility is the first 4K facility with real time gradingfacilities

Integrated offerings to clients include Telecine, DigitalOptics, Promo packaging, Complete DI & deliverables(Conversion, Scanning, HD Recording & Sub titling)

1st in Asia : Adlabs facility comprising Lab, DI Lab anddigital cinema mastering facility accredited by FederationAgainst Copyright Theft (FACT), UK


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Studios

Over 200,000 sq ft with 6 sound stages being developed at Film

City in Mumbai International firm of architects from LA engaged to build the

facility

Will support a mix of film and TV content and will be

operational by December 2009

Mechanical effects : Studios and equipment


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Contd

Equipment Rentals & Services : Lights, Cameras, Grips

Presence in TV broadcasting over the last 1 year as a premiumservice provider

Shows includeDus ka Dum, ET Corporate Awards, JhalakDikhla Ja & Nach Baliye 4

Charge a premium compared to others due to value add interms of technical solutions

Expanding the operations to cover film cameras as anintegrated service offering


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Adlabs operates the 1stand only DCI grade digital cinema operation in India

Mastering facility at Filmcity fully operational

10000 show milestone achieved

Successfully transmitted and played several shows on the back of Reliance

Communications fiber optic network with over 2000 shows : A 1stin the world

Preferred service provider for all digital mastering in 2K

Over 30 Hindi Films done

International work includes trailors for Warner Brothers Chandni Chowk to

China & Sonys James Bond release Quantum of solace

Digital Cinema mastering and projection


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FM Radio


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FM Radio Industry has seen 25 % growth over the previous year

BIG 92.7 FM is No. 1 station with highest share in MUMBAI & BANGALORE

(12+, All) (Source : RAM)

No.1 station among affluent young adults (20-34,AB) in KOLKATA (Source :

RAM)

No.1 station in Surat, Chandigarh & Guwahati ( Source : Indica Research)

Won the Lintas Media Group award

HIGHEST AUDIENCE GROWTH IN ONE YEARfor any media brand

Comprehensive solutions to clients covering on-air, on-ground events and

activations and digital web and mobile solutions

BIG 92.7 FMis Indias No 1 operator with 44

operational stations


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Additional channels in the same city to existing players

At least three players excluding AIR in any district

Maximum number of channels to a radio operator not more than 50% of total

channels in the district

News and Current affairs on FM Radio may be permitted

FDI / FII limit from present 20% to

26% for news radio channels and

49% for non-news radio channels

Networking of FM radio programs across the radio network

Auto Renewal of the radio license

Recent TRAI Recommendations for Phase III are positive


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The Board of Directors at its meeting held on October 25, 2008 hasapproved a scheme of arrangement envisaging the de-merger of theradio business into Reliance Unicom Limited

This scheme is subject to requisite permissions and approvals

Pursuant to the scheme, 1 equity share of Reliance Unicom Limitedshall be issued in respect of every one equity share held by the

shareholders in Adlabs Films Limited

The entire process is expected to take 4 to 6 months

Adlabs proposes to de-merge the

FM Radio business


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SWOT Analysis


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SWOT ANALYSISStrengths

The company is focused in increasing multiplexes across the country withclose to 100 screens in the next couple of years from the current 33 screens.

This will increase the seat size by 3 times The biggest strong point for the company is the current location of its

theatres. They are mostly centrally located. Also, unlike its competitors,they have 8 properties with 7 in Mumbai giving free rental cost (onlyopportunity cost involved)

The company has a strong experience in building and construction. Theyhave a premium theatre too. The utilization of this could probably indicatethe pricing power for the company


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Contd

Weakness

High dependence on distributor for showing films in every theatreand for every film. This gives a very unstable business modelwhen one compares with Adlabs which are in the other end of the

value chain The biggest weakness for any investor, which is mentioned rightly

in the risk factors is the capital structure. It is so unfair for theretail investor. The bonus issue last year has diluted the earningsin a very big game. Further, there is also an issue of a preferenceshare issue at no cost. This has diluted the earnings even further


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Contd

The promoters have been investing in multiple business' streams. Thepromoters' are willing to enter into many areas with a motive of profit.The promoters have more than 25 different companies, partnershipsetc and only 4 are operational

Opportunity

There is a big demand for theatres across the country given the poorquality currently in existence across places. Also, most theatres arewilling to open in Sec B and C cities and move into small towns too

They are willing to work on different model for pricing ticketsdepending on time/day

The contribution of Multiplexes has been increasing constantly andis close to 20%


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Contd

Threat

Success of theatres are movie specific and this can tilt

towards failure with poor movie scripts Alternate sources of entertainment such as DTH, DVD can

lead to lower sales

Removal of entertainment tax benefits can risk profitability if

lower pricing power is not passed to the customer


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Future Plans

Majority stake in Malaysian Lotus Five Star Cinemas

200 cinema halls in 28 North American citiesNew YorkDetroit and Washington

In talks with Dream Works ( Joint venture)


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Never a dull moment !

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