Ashtvinayak

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An Integrated Script
Private and confidential
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Shree Ashtavinayak Cine Vision Limited
Shree Ashtavinayak a snapshot
Industry Overview
Revenue Streams
A Unique Business Model
A Dynamic Management Team
Key Differentiators
Aggressive Growth Plans
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Shree Ashtavinayak A Snapshot

• Focus High entertainment value and mainstream
  Hindi filmed entertainment industry.
• Repertoire - Family entertainers, thrillers,
  comedy and romantic films.
• Integrated Across the complete value chain in
  the commercial motion-pictures segment from
  production to distribution and exhibition
• Leadership A relatively young company that has
  grown aggressively to achieve a leadership
  position in distribution in the Mumbai territory
  the largest film distribution territory in
  India
• Understanding A deep understanding of audience
  preferences stemming from experience in
  distribution translates to a high success-ratio
  of the films produced
• Aggressively growing Expected to outperform
  industry average of 18 per cent.
• Progressive management Company steered by a team
  of seasoned professionals.

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Shree Ashtavinayak Financial Snapshot
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Strategy for Successful Releases

• Best directors, script writers and actors
• Excellent chemistry between director and actors
• Multiple artists in genre of comedy/Love Story.
• Excellent production values shooting locations.
• One of the best promotional campaign i.e.
  strength of the marketing department
• Released in maximum number of screens all over
  India.
• Best music albums in that particular year
• Recovery of the cost of production before the
  release of the movie
• De-risked model pre-selling of right to over
  the C.O.P.
• JAB WE MET SUPERSTAR

• Proper selection of idea, concept script
• Excellent promotion through well made trailors
  and attracting the audience through the title
  songs
• Making the movie in proper time budge by
  completion in less than industry average time of
  12 18 months
• Proper financial management
• Proper weightage on promotion marketing i.e.
  spending more on marketing for better better
  opening at the time of release after having
  proper controlling monitoring practices
• Hard core entertainer which has universal appeal
• BHAGAMBHAG GOLMAAL

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The Indian entertainment industry
Poised for an exciting period of growth

• Media and entertainment industry is valued at USD
  7.72 billion and growing at 19.
• By 2010, the entertainment industry is expected
  to reach USD 18.32 billion. Films contribute
  about 20 share of the entertainment industry.

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The Indian film industry

• Currently the industry is valued at an estimated
  INR 68 billion which is expected to double by
  2010
• The country has about has 12000, single screen
  theaters. Growth in Multiplexes is expected from
  328 screens in 2005 to over 1000 screens by 2008
• Industry revenues expected to grow at CAGR of 18.

Projected growth of the Indian film industry
70,000
Source Industry Sources
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Indian films paradigm changes

• The Government granted Industry status to the
  business in 2001 making it easier for it to
  access funds from the banking system
• Reduced dependence on unorganised sector for
  financing and underwriting/insurance has given it
  a fillip resulting in greater professionalism
  and accountability
• Huge growth in overseas market for Indian films
• Craze for Indian films among the NRIs and the
  neighboring countries
• Easier availability of Institutional finance
  Eg. IDBI, Exim Bank

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Widespread recognition of the industry changes

• Film Finance
• Finance for Production of Films from Banks like
  IDBI Exim Bank.
• IDBI ventures into film distribution after film
  financing
• Total amount funded Rs 460 crore
• We have not been able to capture the upside in
  case of successful films being financed by us. We
  are looking at distribution to get a share of
  profit made by our films says Mr. Jitender
  Balakrishnan, Deputy MD, IDBI

• Insurance companies bring best practices to
  Bollywood.
• Total premium from the film industry has already
  crossed Rs 50 crores.
• United Insurance, General Insurance Corporation,
  Bajaj Allianz General Insurance have already
  entered the arena
• Punctual movie stars, film production being
  undertaken with a completed script and concluded
  on time without cost overruns Thats what
  insurance companies have brought to Indian film
  industry
• We have insured the largest number of films and
  film insurance has been a profitable one for the
  company says M K Garg, Chairman United India
  Insurance

Source ET
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Revenue Streams
Theatrical Exhibition Rights
Overseas Rights
Satellite Telecast Right
Music Rights
In film endorsement corporate sponsorships
Ring Tone Rights, Downloading Rights
In Cinema Advertising
Video CD DVD rental rights
Internet Rights Merchandising
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Average revenue break-up
Source Industry Sources
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Territorial Break up of Domestic Theatrical Sales
Source Industry Sources
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Territorial Break up Mumbai Territory
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Film Production Cost Structure
Source Industry Sources
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Business Model
Production
Distribution
Exhibition
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Business Model
Focus High entertainment value and mainstream
Hindi films
Target audience- All segments
Repertoire - Family entertainers, thrillers,
comedy and romantic films
Movies With Mass Appeal
De-risked model
5 Parameter Test
Movies With Mass Appeal
Active Risk Diversification
Production
Distribution
Production
Distribution
Production
Distribution
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De-Risked Model
De-Risked Model
5 Parameter Test
Movies With Mass Appeal
Active Risk Diversification
Production
Distribution
Production
Distribution
Production
Distribution

• Star cast- Bankability and market value of the
  star
• Banner/Producer- Adequate financial resources to
  complete the movie on time
• Script/Director- Strength of the script and
  track record of the director
• Music director - Track record of the music
  director
• Marketing capability of the producer

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De-Risked Model
De-Risked Model
5 Parameter Test
Movies With Mass Appeal
Active Risk Diversification
Production
Distribution
Production
Distribution

• The recipe of entertainment
• Script
• Screenplay
• Stars
• Salability

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De-Risked Model
De-Risked Model
5 Parameter Test
Movies With Mass Appeal
Active Risk Diversification
Distribution
Production


Bankable stars/directors
Cluster bombing
Multiple stream of revenues
Focus on cost

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De-Risked Model
De-Risked Model
5 Parameter Test
Movies With Mass Appeal
Active Risk Diversification
Revenue Pie (Production segment)
Production
Distribution
Mumbai Territory Box Office 25-35

• Pre-sells all the territories (except Mumbai) and
  other rights of the movie before the release
• Recovers all costs related to movie
• Revenues generated from Mumbai territory go
  directly to the bottom-line
• Company recovers all the money invested in the
  project even before the movie is released

Box Officefrom otherterritories25-35
Profits
Cost of ProductionRecovered through pre-sale
In-CinemaAds 2.5
VideoRights 8
MusicRights 7
Satellite/Cable Rights18
OverseasTheatricalRights 5
Source Company business model
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De-Risked Model
De-risked model
5 Parameter Test
Movies With Mass Appeal
Active Risk Diversification
Production
Distribution

• Reverse calculation of revenues No of screens
  that movie can be screened on X Percentage
  occupancy X Per ticket cost X First 3 days
  revenues Total revenues
• Total revenues /1.2 price of movie rights
• Discounted higher if bought at an earlier stage
• The exposure of movie would be maximum in the
  first week for revenue maximization

Focus on cost
cluster bombing
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Business Model
Film Production

• Began with producing films such as Fun2ssh
  Dudes in the 10th Century and Agnipankh
• Recently released Superstar has received 3 star
  ratings by Critics and running all over India
  successfully.
• A blockbuster hit film Jab We Met released on
  26th October 2007 was highly acclaimed by Critics
  and the Audience.
• Largest and the most successful production
  ventures were Golmaal-Fun Unlimited and Maine
  Pyaar Kyun Kiya
• Bhagambhag and Golmaal-Fun Unlimited were
  runaway hits
• Excellent relationships with acclaimed directors,
  bankable stars and technicians helps to ensure in
  high quality resources available on time
• Corporate structure to help procure institutional
  funding and insurance.
• Accelerated turnaround time -- films expected to
  be completed in 10-13 months ensures cost
  effective production.

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Latest Home Production Release

• Directed by Rohit Jugraj
• Starring Kunal Khemmu, Tulip Joshi, Aushima
  Sahney, Reema Lagoo etc.
• Music Composed by Samir Tandon

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• A blockbuster n highly acclaimed Film
• Awarded by Film fare,Stardust and Star screen in
  the categories of
• the best film,
• best Actor (Shahid Kapur) and
• bestActress (Kareena Kapoor)
• Best Dialogue writer (Imtiaz Ali)

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Motion pictures produced and released
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Films on the floor

• Untitled by Abbas-Mustan
• Untitled Neeraj Vora
• Untitled by Rohit Shetty
• Untitled by Anthony Dsouza
• Untitled by Roomy Jafri
• Untitled by Priyadarshan

• Untitled by Shivam Nair
• Untitled by Sanjay Gadhvi
• CHAKKARA VIYUGAM - Tamil film

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Business portfolio
Film distribution

• A leading distributor in the Mumbai Territory
• High success rate in distribution is ensured by
  grassroot model to understand and estimate the
  market
• Successfully distributed blockbusters such as
  Main Hoon Na, Dus, Mujhse Shaadi Karogi, Aitraaz,
  Phir Hera Pheri, Partner, Heyy Babyy, Om Shanti
  Om, Welcome etc
• Acquired the worldwide distribution rights for
  the film Tom Dick Harry
• Geographical Expansion by distributing films in
  Delhi/UP, Punjab, Rajasthan, Nizam and Overseas.
• Management insight into selection of films and
  its pricing based on attributes like genre of the
  film, production house, star cast, directors, the
  music and technology are responsible for success.

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A portfolio of our distribution successes
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A portfolio of our distribution successes
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A portfolio of our distribution successes

• Directed By Farah Khan
• Starring Shahrukh Khan,
• Shreyas Talpade and
• Deepika Padukone.
• Directed by Anees Bazmee
• Starring Akshay Kumar,
• Paresh Rawal, Anil Kapoor,
• Nana Patekar,
• Katrina Kaif etc.

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Business portfolio
Film exhibition

• Strategy of acquiring running time/programming
  time of single screen theatres in Mumbai
  Territory
• Allows the company to integrate with the retail
  end of the cinema value chain
• Offers better understanding of audience
  preferences which helps cherry picking films to
  be produced and distributed.

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Shree Ashtavinayak An Attractive Proposition
Attractively positioned

• One of the pioneers to put in place an integrated
  set up covering production, distribution and
  exhibition.
• A corporatized, professionally managed company
  implies
• Smoother functioning, better coordination, rapid
  turnarounds, superior budgeting and stricter
  internal controls and lower cost over runs
• Ability to garner the best talent from across
  the industry
• Organization wide discipline and well defined key
  result areas for employees ensures better
  performance and cost effectiveness

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Shree Ashtavinayak Competitive edge
Competitive edge

• A de-risk approach to business by having presence
  in the entire value chain
• Experience in film distribution has ensured
  in-depth interaction with leading entities in the
  industry
• Established processes ensure clinical execution
  of the projects and maximize utilization of
  resources
• Ability to handle multiple projects
  simultaneously within tight timeframes and
  budgets avoiding any time and cost overruns.
• Executing multiple projects results in economies
  of scale across all production costs including
  fees to actors, directors and technicians

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Strong presence in the entire value chain
Production
Distribution
Exhibition

• With an average margin of 25 this segment is the
  key revenue driver for the company
• Strength in distribution contributes to greater
  insight into audience preferences- minimizing
  risk maximizing returns.
• Corporate structure to help procure institutional
  funding and insurance facility.

• Good relation with production houses ensures
  continuous availability of quality films
• It also provides an insight as to how other
  production houses function
• Greater control over home productions.
• Distributing films from other banners, provides
  critical market knowledge besides revenues

• Recent foray into exhibition to gain control of
  the retail end.
• Gives assured audiences for in-house productions.
  
• Provides deeper understanding of the audience
  preferences, aiding future productions.
• Helps diversify revenue streams

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Segmental Break up of revenues and PBIT March,07
Segmental Revenues
Segmental Profits march,07
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Management Team
Management Team
An M.B.A with a finance specialization, he is the
promoter of Shree Ashtavinayak Cine Vision Ltd.
He oversees operations of the company. Dhilin
began his career with small budget films like
Fun2ssh and Agnipankh and then led the company in
its bigger ventures in production and
distribution. Presently he is concentrating on
working with renowned actors and technicians on
the forthcoming ventures of the Company.
Mr. Dhilin Mehta Chairman and Managing Director
A Management Graduate specialized in Marketing.
He is responsible for the Distribution and
Marketing Divisions of the Company. He is
involved in the acquisition of distribution
rights for films produced by other production
houses. After concluding the acquisition deals,
Rupen decides the media strategy using the
various channels for publicity like television,
print and hoardings for successful commercial
exploitation of the movies. His experience of
working with some of the large corporates such as
Coca Cola and HSBC and the understanding of how
big organizations operate and sustain their
businesses has been of immense help.
Mr. Rupen Amlani Director Distribution and
Marketing
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Management Team
Management Team
A Management Graduate (MBA), specialized in
Marketing. He looks after Business Development
and is also involved with both Production and
Distribution Divisions of the Company. He is
responsible for drawing up the strategic roadmap
of the production department, being the interface
between the company and the directors, actors,
script-writers and others. He guides a venture
from concept to creation. His insight in the
field of distribution is of assistance while
selling the different rights such as distribution
rights, overseas rights, music rights, satellite
rights among others to extract the maximum
revenues.
Mr. Dhaval Jatania Director Business
Development
A Computer Engineer, specialized in Networking.
Hiren looks after the Production Division and
particularly focuses on the budgeting aspect.
Each project receives his attention and is
responsible for the finalization of the scripts,
directors, cast and locations. His experience and
relations built over the years with one and all
aid smooth coordination between the various
facets of filmmaking. Hiren has been involved in
all the three in-house productions of Shree
Ashtavinayak Cine Vision.
Mr. Hiren Gandhi Director Production
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Key Differentiators

• Creative and Dynamic management team not
  dependent on the skills and decisions of an
  individual.
• Corporatised approach characterized by
• Collective decision making
• Young and professionally qualified management
  team
• Delegated responsibility
• Well established processes
• Sound knowledge of art culture
• Long term commitment from bankable stars,
  renowned directors and technicians
• Well defined projects in the pipeline for next 3
  years
• Cordial relation with the key stakeholders of the
  industry reduces competitive pressure
• Vertically integrated in the entire value chain
• Strong marketing strategy

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Aggressive growth plans

• Production
• Targeting at least 4 to 5 films in a year
• Signed up reputed directors and actors to ensure
  the success of our projects
• Make multiple projects in Hindi as well as
  targeting regional films

• Distribution
• Targeting the distribution of about 6 films
  having potential to be big grossers
• Plans to improve margins through digitalization
• Geographic expansion into other territories and
  overseas markets

• Exhibition
• Arrangements with various theatres for exhibition
  of films
• Plans to tie up with more single screen theatres
  and multiplexes

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Disclaimer
In this communication we have disclosed
forward-looking information to enable investors
to comprehend our prospects and take informed
investment decisions. This report and other
statements written and oral - that we
periodically make contain forward-looking
statements that set out anticipated results based
on the managements plans and assumptions. We
have tried wherever possible to identify such
statements by using words such as anticipate,
estimate, expects, projects, intends,
plans, believes, and words of similar
substance in connection with any discussion of
future performance. We cannot guarantee that
these forward-looking statements will be
realised, although we believe we have been
prudent in assumptions. The achievement of
results is subject to risks, uncertainties and
even inaccurate assumptions. Should known or
unknown risks or uncertainties materialise, or
should underlying assumptions prove inaccurate,
actual results could vary materially from those
anticipated, estimated or projected. Readers
should bear this in mind. We undertake no
obligation to publicly update any forward-looking
statement, whether as a result of new
information, future events or otherwise. The
information contained herein has been prepared
solely for information purposes and is not an
offer or solicitation of an offer to buy/sell the
securities/instruments mentioned or to
participate in any trading strategy or an
official confirmation. This is not a research
and but it may refer to a research
analyst/research report. The Company does not
represent that the information contained herein
is accurate or complete. Information is subject
to change without notice and we may not update
this. Past performance is not indicative of
future returns. This price information (if any)
is provided solely for informational purposes and
may differ substantially from price information
available from other sources or an actionable
price.
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Thank You
A - 204/205, VIP Plaza, 2nd Floor, B/7 Veera
Industrial Estate, Off Andheri Malad Link Road,
Andheri (W) Mumbai - 400 053
Tel [phone] Fax [phone]
9634 www.ashtavinayakindia.com e mail
info_at_ashtavinayakindia.com