Multi Screen Media Private Limited Preliminary Information Memorandum August 2009 Note: This...
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Multi Screen Media Private Limited Preliminary Information Memorandum August 2009 Note: This Memorandum contains strictly private and confidential information relating to privately held companies and is subject to a Confidentiality Agreement dated ______ between Multi Screen Media Private Limited and __________. This Memorandum is intended for informational purposes only. Neither Multi Screen Media Private Limited nor any of its affiliated companies are making any representations or warranties regarding the information contained herein. Multi Screen Media Private Limited fiscal year ends on March 31st. All $ references are to US Dollars. The information included herein contains certain projections and forward-looking statements regarding, among other things, the future performance of Multi Screen Media Private Limited. Such projections and forward-looking statements reflect various assumptions, involve elements of subjective analysis and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. No representation is made that any returns indicated or performance levels will be achieved or that all assumptions have been considered or stated. Actual results may differ materially from anticipated results. All forward-looking statements included are based on information available at the time prepared and we assume no duty to update any forward-looking statement. The Indian macroeconomic and media industry information contained in this presentation does not reflect changes due to
Multi Screen Media Private Limited Preliminary Information Memorandum August 2009 Note: This Memorandum contains strictly private and confidential information
Multi Screen Media Private Limited Preliminary Information
Memorandum August 2009 Note: This Memorandum contains strictly
private and confidential information relating to privately held
companies and is subject to a Confidentiality Agreement dated
______ between Multi Screen Media Private Limited and __________.
This Memorandum is intended for informational purposes only.
Neither Multi Screen Media Private Limited nor any of its
affiliated companies are making any representations or warranties
regarding the information contained herein. Multi Screen Media
Private Limited fiscal year ends on March 31st. All $ references
are to US Dollars. The information included herein contains certain
projections and forward-looking statements regarding, among other
things, the future performance of Multi Screen Media Private
Limited. Such projections and forward-looking statements reflect
various assumptions, involve elements of subjective analysis and
are subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our
control. No representation is made that any returns indicated or
performance levels will be achieved or that all assumptions have
been considered or stated. Actual results may differ materially
from anticipated results. All forward-looking statements included
are based on information available at the time prepared and we
assume no duty to update any forward-looking statement. The Indian
macroeconomic and media industry information contained in this
presentation does not reflect changes due to the recent global
economic downturn.
Slide 2
2CONFIDENTIAL For Informational Purposes Only2 Executive
Summary Multi Screen Media Private Limited and its affiliated
companies (MSM) are privately owned and together own and operate
four cable and satellite channels in India - SET, MAX, SAB and PIX
The Indian media industry continues a robust expansion projected to
grow 12.5% CAGR over the next 5 years reaching $22 Billion by 2013
Continued economic growth in India provides a sustainable backdrop
for local operations especially in the media & entertainment
industry MSM is uniquely positioned to solidify its success and
further expand its operations due to its unique strengths -Poised
for expansion with several initiatives underway -High quality
international standards of operation -Experienced management team
Source: PWC-FICCI Report The Indian Entertainment and Media
Industry In the intervalBut ready for the next act, 2009.
Slide 3
3CONFIDENTIAL For Informational Purposes Only3 Indian Economic
Outlook Sources: Goldman Sachs Dreaming with Brics: The Path to
2050, October 1, 2003; South Asia Institute, University of Texas
Fueled by strong GDP growth, India is expected to be among the top
3 economies in the world by 2050 As GDP grows, consumers are
attaining higher levels of disposable income Disposable income can
be expected to translate into lifestyle changes with consumer
spending expected to shift towards leisure and entertainment India
is the largest youth market in the world, comprised of
approximately 340 Million individuals under the age of 15 Among Top
3 Economies in World by 2050GDP & Disposable Income Projections
8% CAGR (GDP)
Slide 4
4CONFIDENTIAL For Informational Purposes Only4 Indian Media
Industry Media Industry continues a robust expansion projected to
grow from $12.2 Billion in 2008 to $22 Billion in 2013 (13% CAGR)
due to growth of the economy, increase in disposable income and the
fact that a high percentage of population is young Television
drives the industry growth with revenues projected at 14% CAGR over
the next five years Television is the strongest medium reaching 500
Million individuals; print, the second largest medium, reaches 222
Million individuals Source: PWC-FICCI Report The Indian
Entertainment and Media Industry In the intervalBut ready for the
next act, 2009.
Slide 5
5CONFIDENTIAL For Informational Purposes Only5 India represents
the third largest television audience in the world and is the fifth
largest market for television sets in the world Today, of the 205
Million households in India, 123 Million are television households,
a penetration rate of 60% By 2013, the total number of television
households in India is estimated to be about 149 Million, a
penetration rate of 69% The television industry, on the whole, is
projected to grow at the rate of 14.5% over 2009-13 and reach a
size of $10 Billion by 2013 Indian Television Industry Source:
PWC-FICCI Report The Indian Entertainment and Media Industry In the
intervalBut ready for the next act, 2009; Credit Suisse, Challenges
for Hollywood in Bollywood, April 21, 2008 Growth of Television
HouseholdsGrowth of Pay Television Households
Slide 6
6CONFIDENTIAL For Informational Purposes Only6 Indian
Advertising Market Despite the increase in ad revenue in recent
years, the advertising to GDP ratio in India is still at a low of
0.47% versus developed economies like the U.S, U.K. and China
indicating significant potential for future growth Television ad
market has grown steadily over the last several years; from $1
Billion in advertising revenues in 2005 to an estimated $2 Billion
in 2010 and a projected $3.2 Billion in 2013 Projected increase in
total advertising spend, coupled with strong growth in television
viewership, makes India a very lucrative television market Sources:
The Associated Chambers of Commerce and Industry of India
(ASSOCHAM) (2007), PWC-FICCI Report The Indian Entertainment and
Media Industry In the intervalBut ready for the next act, 2009;
Credit Suisse, Challenges for Hollywood in Bollywood, April 21,
2008 CAGR 15%
Slide 7
7CONFIDENTIAL For Informational Purposes Only7 Indian
Distribution Market Digital mediums have emerged in the form of
DTH, Digital Cable and IPTV which has led to a rapid growth in the
subscription base Subscription revenue is projected to be the key
growth driver of revenue for the Indian television industry over
the next five years, mainly due to: Economic growth, which is
expected to increase both the number of pay television households
and subscription rates Pressure on cable operators to report
subscriber numbers more accurately Subscription revenue is
projected to grow at a higher CAGR of 14.9% over 2009-13 compared
to 12.4% over 2006-08 Source: PWC-FICCI Report The Indian
Entertainment and Media Industry In the intervalBut ready for the
next act, 2009
Slide 8
8CONFIDENTIAL For Informational Purposes Only8 Company Overview
Established in October 1995, a top cable and satellite television
channel provider in India Own and operate the following cable and
satellite channels: 2 Hindi language general entertainment cable
and satellite channels, Sony Entertainment Television (SET) and SAB
#1 Hindi language movie and events channel, SET MAX (MAX) #3
English language movie channel, SET PIX (PIX) Distribute channels
in India as part of joint venture with Discovery (TheOneAlliance),
the 3rd largest distribution platform in number of channels, and
2nd largest in revenue In addition to India, channels are available
in over 70 other countries One of the largest aggregators of Hindi
language programming in the world with a library of over 12,000
hours of filmed entertainment Seasoned management team with over
450 employees
Slide 9
9CONFIDENTIAL For Informational Purposes Only9 Ownership
Structure MSM Singapore (channels, content acquisition, TV &
film library, international distribution) MSM India (TV production,
India distribution, ad sales & marketing) (100%) Owns Atlas
Equifin (12%) Capital Funds (6%) SPE Entities (62%) Grandway (20%)
MSM India shareholders
Slide 10
10CONFIDENTIAL For Informational Purposes Only10 Group
Structure MSM India MSM Singapore MSM Discovery (One Alliance) MSM
Asia MSM North America MainLine Sports* BEN-SET* 100% 74% 100% 50%
100% * Dormant company.
Slide 11
11CONFIDENTIAL For Informational Purposes Only11CONFIDENTIAL
For Informational Purposes Only History/Evolution Key Milestones
Grant of FIPB approval to set up MSM and launch SET Launch of SET
MAX Acquired rights to ICC cricket tournaments from 2002 to 2007
Established MSM Discovery JV; distributing channels under the brand
name TheOneAlliance Acquired SAB from Sri Adhikari Brothers
Television Network Limited Acquired rights to distribute NDTV
Profit in India Acquired 100% of MSM Singapore through a share swap
corporate restructuring Launch of SET PIX Acquired rights to
distribute and sell advertising on AXN India Conversion of SET to a
pay channel Acquired rights to distribute NDTV India and NDTV 24x7
in India Acquired rights to distribute MTV and Nickelodeon (Nick)
in India and distribute and sell advertising on Animax India Launch
of MAX International 200019972002200520061998200120032004 1995
Launch of SET International 2008 Acquired rights to the Indian
Premier League (a domestic cricket league launched by BCCI)
Launched SAB in the international markets Launched successful IPL
Season 2 Acquired rights to distribute Colors in India 2009
Slide 12
12CONFIDENTIAL For Informational Purposes Only12CONFIDENTIAL
For Informational Purposes Only12 MSM India Corporate Organization
Man Jit Singh Chairman & Acting CEO Ashok Nambissan General
Counsel Nitin Nadkarni CFO Rohit Gupta President Sales & Rev
Mgmt OPEN SVP, Licensing & Telephony Sneha Rajani Business Head
MAX NP Singh COO Ajit Thakur Business Head SET Gurdip Bhangoo
Programming Head SET Anooj Kapoor Business Head SAB Sunder Aaron
Business Head PIX Anjani Kumar SVP, Enabling & Tech Services
Sunil Panjabi SVP Corp Development MSM Singapore Banu Veloo GM MSM
Singapore Rajan Singh EVP Intl Business, London MSM Discovery JV
Rajesh Kaul President, MSM Discovery
Slide 13
13CONFIDENTIAL For Informational Purposes Only13 Sony
Entertainment Television SET reaches approximately 100 Million
households, showcasing serials, reality, movies and events SET
(fresh entertainment for todays family) competes with Star Plus,
Zee TV, Colors and Imagine Known to introduce innovative formats
Indian Idol, Jhalak Dikhhla Jaa / Dancing with the Stars, Comedy
Circus, Dus Ka Dum / Power of Ten, Naya Roop Nayi Zindagi, K for
Kishore, Entertainment Ke Liye Kuch Bhi Karega Launched fresh
programming during weekdays/weekends both fiction and non-fiction
positive traction on two fiction shows Preparing to launch a big
format reality show
Slide 14
14CONFIDENTIAL For Informational Purposes Only14 MAX is now
established as a clear #1 in its category Made major gains through
broadcast of IPL earlier this year IPL achieved an average rating
of 4.2 with the finals at 9.3 Channel continues to lead via its
innovations in programming and marketing and has been recognized
for its efforts with many national and international awards for
creative excellence Pioneering concept of a unique wraparound
program using female anchors - Extraaa Innings continues to be the
best cricket entertainment show Acquires top class movies each year
14 MAX India s Top Bollywood and Events Channel
Slide 15
15CONFIDENTIAL For Informational Purposes Only15 SAB is the
first Hindi General Entertainment Channel that showcases content
with a strong comedy skew ratings have grown close to 100% in the
last one year Optimistic, humorous, innovative and providing
popular entertainment for New India, SAB is trying to create a
niche for itself in a highly cluttered and fragmented general
entertainment space Lo Ho Gayi Pooja Is Ghar Ki is Indias first
daily family comedy; Tarak Mehta Ka Oolta Chashma has done very
well; just launched Maniben.com Fresh programming being launched on
Fridays and weekdays SAB Strong Comedy Channel
Slide 16
16CONFIDENTIAL For Informational Purposes Only16CONFIDENTIAL
For Informational Purposes Only16 PIX India s #3 English Language
Movie Channel Launched April 1, 2006 to compete with three
well-established and well entrenched movie channels (HBO, Star
Movies, Zee Studio) Despite its limited access to current titles,
PIX has occasionally achieved higher ratings than more established
movie channels that air current titles Premium in its appearance,
PIX focuses on telling good stories and presents English language
movies in a distinctive yet relatable way by using localized
content and elements that enhance the Indian movie lovers viewing
experience Distribution in 23 Million households - Focus on top 6
metros Launched its first reality show Gateway and first Hollywood
films review show on Indian television Chicks on Flicks
Slide 17
17CONFIDENTIAL For Informational Purposes Only17 TheOneAlliance
Distribution Bouquet Note: Both Zee Turner and Star have additional
channels in other categories including, but not limited to, games,
religion, and lifestyle as well as regional language channels. MSM
and Discovery formed TheOneAlliance in 2002 to provide a strong
platform for distribution With 20 channels, TheOneAlliance is the
third largest distribution platform in terms of number of channels
and the second largest with respect to revenue after Star with
approximately 23% revenue share Distributed channels are among the
top in their categories New competition emerging GE Hindi Movies
Non- fiction English Serials Hindi News English News Business News
Music English Movies KidsSports One Alliance SET/SAB/ Colors Max
Discovery/ AP/ DTL AXN NDTV IndiaNDTV 24X7 NDTV Profit MTV SET PIX
Nick/ Animax STAR Star Plus/ Star One/ Star Utsav Star Gold
NGC/History/ Zoom Star World Star News/ IBN7 Channel V Star Movies
Hungama/ Toon / Disney (2) Zee Turner Zee/ Smile/ Next Zee Cinema
Reality/ Trendz Zee Caf Zee NewsCNN Zee Business Music / ETC / VH1
Zee Studio/ HBO Cartoon Network/ Pogo Zee Sports/ TEN Sports
Leading Distributors Aaj Tak Tez Headlines VH1 CNBC Tv18/ Awaaz CNN
IBN/ Times Now
Slide 18
18 In addition to South Asia, our channels are distributed to
over 70 countries through various distribution platforms The UK
(BSkyB and Virgin Media) and the US (EchoStar, Cablevision and
Comcast) are our two largest markets outside India SET strongly
positioned in all key international markets outside South Asia US
and Canada Middle East and North Africa Europe (including UK)
Africa Also available in Southeast Asia and Pacific (including
Australia and New Zealand) MAX, launched outside India in 2004, now
has several hundred thousand subscribers outside India and is
available in US, Europe including UK, Middle East and North Africa,
Australia, New Zealand and Canada Strong launch of MAX MIX platform
in the UK with MAX, Aaj Tak, ARY, Sahara Filmy and Sahara One
offered on BSkyB SAB (like SET and MAX) is available in Bangladesh,
Nepal, Bhutan and Maldives in South Asia and is targeting further
expansion in the US and UK in FY 10 International Distribution of
Networks CONFIDENTIAL For Informational Purposes Only
Slide 19
19CONFIDENTIAL For Informational Purposes Only19CONFIDENTIAL
For Informational Purposes Only Indian Premier League (IPL) IPL
Season 2 was a huge success Matches achieved an average TVR of 4.2
and the final delivered a TVR of 9.3 This season saw smaller towns
& cities adopting IPL much more than last year with the
contribution increasing to 34% (31% last year). MSM holds the South
Asian television rights from BCCI for the next 7 years ending
December 31, 2016 with an option for an additional year Source :
TAM India, Markets : All India, TG : C &S 4+, April 2009
Slide 20
20CONFIDENTIAL For Informational Purposes Only20CONFIDENTIAL
For Informational Purposes Only Strengthen share and reach of
existing portfolio of channels Launch a sports channel to exploit
cricket acquisitions and other sport events Invest in regional
markets by launching and/or acquiring channels MSM has the
opportunity to purchase 100% of Bangla Entertainment Private
Limited (BEPL) from Sony Pictures. BEPL operates "Channel 8", the
only Bengali-language movie channel. The Bengali market is among
the fastest growing regional markets in India with an estimated
advertising market of $75 Million, growing at an 18% CAGR*. BEPL
has access to 300 top Bengali film titles as well as a sourcing
agreement to provide an additional new 12 features and 36 new
telefilms per year. Currently, Channel 8 is distributed by
TheOneAlliance and ad sales is represented by MSM Start an in-house
television production unit to supplement outsourced programming by
building and developing an in-house team of dedicated creative and
technical production talent Maximize subscription revenue by
continuing to add complementary channels to TheOneAlliance and
exploiting cricket rights to drive distribution Expand distribution
of channels outside of India to grow international subscription and
advertising revenue and increase market share Increase syndication
of MSM library content to other channels and distribution platforms
(including exploitation of digital platforms) globally Company
Growth Initiatives *Source : India Media Sector, Credit Suisse
Equity Research
Slide 21
21CONFIDENTIAL For Informational Purposes Only21CONFIDENTIAL
For Informational Purposes Only Primary competition continues
expanding/consolidating their portfolios Star has set up Fox
Studios for local television production and growing regional
channels portfolio Zee is focusing on consolidating its portfolio
has shut down Zee Next which was launched last year Viacom formed a
JV with TV18 and contributed MTV, VH1 and Nickelodeon; JV launched
a Hindi language general entertainment channel, Colors, in July
2008, which has become very successful in a short period of time
NDTV Imagine, launched in January 2008, is now showing growth in
ratings INX Media, created by the former CEO of Star India in late
2007, launched three new channels (Hindi language general
entertainment 9X, Hindi language music 9XM, English language news
9X News) Miditech, traditionally a non-fiction production company,
launched a Hindi language general entertainment channel in 2009,
Real, in partnership with Turner; sub par performance so far Many
new channel launches have been held back due to slow market
Competitive Environment in India
Slide 22
22CONFIDENTIAL For Informational Purposes Only22CONFIDENTIAL
For Informational Purposes Only22 Regulatory Environment in India
MSM India has successfully operated in India for 14 yrs despite a
difficult regulatory environment as Indian government has played an
aggressive role in industry regulations in recent years Conditional
Access System (CAS) regulations mandate installation of set top
boxes in cable households to receive pay TV channels and a la carte
distribution. CAS has been implemented in Chennai and certain parts
of Delhi, Mumbai and Kolkata There are also price controls and
other distribution regulations (governed by The Telecom Regulatory
Authority of India (TRAI)) Price controls in effect since December
2003 Must provide regulations in which channel providers cannot
enter into exclusive contracts with operators/distributors and have
to provide their channels on a non- discriminatory basis In CAS
regions, mandated contractual terms and revenue splits between
channel providers and operators/distributors
Slide 23
23CONFIDENTIAL For Informational Purposes Only23CONFIDENTIAL
For Informational Purposes Only23 Regulatory Environment in India
(contd) Downlinking Guidelines/Indian Broadcast License Mandated
licensing of TV channels Indian government suspended certain
channels from air for content deemed objectionable Compulsory
sublicensing of certain sports rights to public broadcaster (Indian
government channels) Content Regulations Courts mandated prior
Censor Board approval so that all motion pictures exhibited on TV
qualify as U (G) or U/A (PG) Indian government exploring Content
Code providing additional restrictions on programming and
advertising content
Slide 24
24CONFIDENTIAL For Informational Purposes Only24 MSM considers
programming amortization to be an operating expense and therefore
it is included in the programming expense line before calculating
EBITDA. Income Statement
Slide 25
25CONFIDENTIAL For Informational Purposes Only25 Cash Flow
Statement
Slide 26
26CONFIDENTIAL For Informational Purposes Only26 Balance
Sheet
Slide 27
27 Segmented Revenue - SETEBITDA and EBIT Trends - SET
Segmented Revenue - MAXEBITDA and EBIT Trends - MAX 114 131 150 168
186 CAGR 10 -14 ~13% 203 208 235 259 288 CAGR 10 -14 ~9% All
channel figures/stats include India and international, where
applicable, and MAX includes cricket. CONFIDENTIAL For
Informational Purposes Only
Slide 28
28 Segmented Revenue - SABEBITDA and EBIT Trends - SAB
Segmented Revenue - PIXEBITDA and EBIT Trends - PIX 22 33 39 45 53
CAGR 10 -14 ~25% 9 13 17 19 CAGR 10 -14 ~21% 15 All channel
figures/stats include India and international, where applicable
CONFIDENTIAL For Informational Purposes Only
Slide 29
29CONFIDENTIAL For Informational Purposes Only29 Accounting
Principles Financial statements for FY 07 have been prepared under
US GAAP Statutory financial statements are prepared in accordance
with local generally accepted accounting principles in order to
comply with local statutory filing requirements (UK GAAP, Singapore
Financial Reporting Standards and Indian GAAP). These are up to
date through FY 08 Revenue recognition Advertisement revenue, net
of agency commission, is recognized in the period during which
advertising spots are aired Subscription revenue is recognized over
the period during which the related services are provided
Programming costs Owned television series are amortized over two
financial years in the ratio of 75:25 Films are amortized through
the license period, based on estimated revenues, from the date of
first telecast or beginning of the license period depending on the
film category Cricket rights are amortized based on estimated total
revenue over the license period Events and sports (other than
cricket) are amortized over the license period Significant
Accounting Policies
Slide 30
30CONFIDENTIAL For Informational Purposes Only30 MSM Capital
Needs At the end of FY 09, MSM realized a negative net cash flow of
$70 Million, which was financed through a $40 Million shareholders
capital call and the balance through bank debt FYE 10 projected net
cash flow is planned at ($121.4) Million, with ($61.6) Million
attributed to the IPL; ($37.8) Million to the core business; ($8.7)
Million to NZ Cricket; and ($13.3) Million to an extraordinary cash
event $40 Million of current bank debt with SMBC has been rolled
over until June 2010 and it is likely that an additional rollover
will be required into FY12 Due to significant cricket payments in
FY10 approximating $145 Million, $60 Million in bridge loans have
been provided by SONY to supplement IPL A/R financing and other
working capital financing arrangements It is anticipated that the
$60 Million bridge loans will be repaid upon a shareholder capital
infusion In FY 10 and FY 11, the company will likely require up to
an additional $40 Million in capital In FY 11 and FY 12, IPL A/R
Financing will still be required
Slide 31
31CONFIDENTIAL For Informational Purposes Only31 India Tax
Authorities have been contending that MSM Satellite (Singapore)
Pte. Ltd. (MSMS) has a Permanent Establishment in India due to its
relationships with Multi Screen Media Private Limited (MSMI).
Although the Bombay High Court for assessment year (AY) 1999-2000
has held in favor of MSMS, India Tax Authorities have appealed this
decision to the Supreme Court of India. As of March 31, 2008, MSMS
has a reserve of US $33.8 Million pending final resolution of all
related cases in connection with multiple assessment years.
Pursuant to a tax gross up clause in its license agreement with
Global Cricket Corporation Pte Limited (GCC) for certain television
rights to ICC cricket matches from 2002 to 2007, MSMS is
financially responsible for any withholding taxes (WHT) relating to
the agreement. Although MSMS received favorable Commissioner of
Income Tax (Appeals) (CIT(A)) orders through AY 2008-09, India Tax
Authorities rejected MSMS application for a nil WHT order relating
to a final payment made in 2009. This order is being appealed to
the CIT(A). Singapore Economic Development Board granted MSMS an
Approved Royalties Certificate for its license agreements under
which the Singapore WHT on approved royalties is 0% in exchange for
MSMSs guarantee of certain increased business spending in
Singapore. Analysis of recent Indian case law indicates that
service fees earned on marketing of airtime may not qualify for
deduction under Section 80HHF. MSMI has consequently reserved
US$2.4 Million for AY 2000-01 to AY 2004-05. Tax Issues
Slide 32
32CONFIDENTIAL For Informational Purposes Only32 Current Bank
Facilities Working Capital Facilities Short Term Loans Standard
Chartered BankSumitomo Mitsui Banking Corporation (SMBC) $18
Million Working Capital Facility Amount:US $18 Million credit
facility for MSM Singapore Interest:LIBOR or SIBOR plus 100 basis
points per annum plus liquidity premium Term:Revolving six month
renewals Status:$17,825,200 total outstanding balance $40 Million
Bridge Loan Amount: US $40 Million credit facility for MSM
Singapore Interest: SMBC base rate plus 60 basis points per annum
Term: Due on June 30, 2010 Status: Fully drawn down $15 Million
Working Capital Facility Amount:US$15 Million credit facility for
MSM Singapore Interest:LIBOR or SIBOR plus 150 basis points per
annum plus liquidity premium Term:Revolving 360-day renewals
Status:Fully drawn down Rs. 220 Million ($4.6 Million) Working
Capital Facilities Amount:Rs. 220 Million credit facilities for MSM
India Interest:Set by bank Term:Revolving 30 day facility; maximum
rollover is 1 year Status:Not currently drawn down
Slide 33
33CONFIDENTIAL For Informational Purposes Only33 Current Bank
Facilities (contd) IPL AR Financing Short Term Loans Sony Global
Treasury Services $30 Million Bridge Loan 1 Amount: US $30 Million
credit facility for MSM Singapore Interest: Inter-bank offer rate
with 0.125% margin Term: Earlier of August 31, 2009 or as
determined by lender Status: Fully drawn down Standard Chartered
Bank $60 Million Receivables Financing Amount: US $60 Million
credit facility for MSM Singapore Interest: LIBOR plus 375 basis
points per annum Term: Maximum 150 days from date of IPL
advertising invoices Status: $25,831,000 total outstanding balance
$30 Million Bridge Loan 2 Amount: US $30 Million credit facility
for MSM Singapore Interest: Inter-bank offer rate with 0.125%
margin Term: Earlier of August 31, 2009 or as determined by lender
Status: Fully drawn down
Slide 34
34CONFIDENTIAL For Informational Purposes Only34 Current Bank
Facilities (contd) Film Financing Facilities HDFC BankStandard
Chartered Bank Rs. 710 Million ($14.79 Million) Invoice Discounting
Facility Amount:Rs. 710 Million film financing line for MSM India
Interest:Set by bank Term:Up to 1 year Status:NIL outstanding $40
Million Invoice Discounting Facility Amount:US $40 Million film
financing line for MSM India Interest:Negotiable prior to each
drawdown Term:Up to 3 years from date of first drawdown
Status:Fully drawn down Rs. 300 Million ($6.3 Million) Post
Shipment Facility Amount:Rs. 300 Million film financing line for
MSM India Interest:Set by bank Term:Up to 360 days Status:NIL
outstanding Axis Bank Rs. 500 Million ($10.4 Million) Invoice
Discounting Facility Amount:Rs. 500 Million film financing line for
MSM India Interest:Bank Prime Lending Rate minus 3.25% Term:Up to 3
years Status:$2.4 Million outstanding
Slide 35
35CONFIDENTIAL For Informational Purposes Only35 Conclusion MSM
influences viewers in the Indian subcontinent and South Asian
Diaspora worldwide MSM has established itself as a market leader
servicing the digital entertainment needs of our viewers across
multiple platforms MSM is operating in a very exciting marketplace
that offers many opportunities for its business to flourish and MSM
is well-positioned to capitalize on all opportunities Strategic
investments in identified future growth areas will take MSM to the
next level and establish it as a strong media conglomerate Further
information can be found at www.setindia.com,
www.maxtelevision.com, www.sabtv.com, www.pixtelevision.com,
www.setasia.tv, www.maxasia.tvwww.setindia.comwww.maxtelevision.com
www.sabtv.comwww.pixtelevision.comwww.setasia.tvwww.maxasia.tv