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DQ Entertainment International Ltd.

BSE: 533176 Sector: Media
NSE: DQE ISIN Code: INE656K01010
BSE LIVE 15:41 | 22 Sep 16.11 -0.59
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NSE 15:41 | 22 Sep 16.20 -0.50
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HIGH

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OPEN 16.50
PREVIOUS CLOSE 16.70
VOLUME 22759
52-Week high 29.85
52-Week low 11.50
P/E 9.26
Mkt Cap.(Rs cr) 128
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 16.50
CLOSE 16.70
VOLUME 22759
52-Week high 29.85
52-Week low 11.50
P/E 9.26
Mkt Cap.(Rs cr) 128
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

DQ Entertainment International Ltd. (DQE) - Chairman Speech

Company chairman speech

CHAIRMAN'S STATEMENT

DQE's ability to adopt the newer technologies quickly and efficiently in this rapidlychanging environment will help it to monetize from alternate revenue streams with thecurrent library of content

Dear Shareholders

We are happy to place before you our annual results for the year ended 31 March 2014.

During the last couple of years DQE has remained focused on building its owntelevision content production and distribution business while also leveraging itsresources to benefit from alternate channels and platforms.

Furthermore we continue to develop and progress on our feature film production whichwill complement to our existing production pipeline and also add several new intellectualproperties to our portfolio that comprise the foundation of our business.

Our licensing and distribution group has performed well concluding new agreements withinternational broadcast partners as well as several licensees for variety of merchandiseproducts.

The business of entertainment has evolved into a highly dynamic industryinterconnected by varied global digital platforms. The demand for good quality content hasgrown substantially due to the availability of digital platforms for exploitation anddistribution. Broadband Internet connections across all major markets are on the risewhile the increased use of alternate screens such as the tablet and Smartphone hasaccelerated the growth of mobile broadband subscribers across the globe. There arecurrently an estimated 2.1 billion mobile broadband users growing at a rate of 30%annually and projected to touch 7 billion subscribers by 2018. DQE is well positioned totake advantage of this mass market requirement of content in addition to the normalrevenue streams currently being generated.

As already demonstrated in the past DQE's ability to adapt the newer technologiesquickly and efficiently in this rapidly changing environment will help it to monetize fromalternate revenue streams with the current library of content. In order to create a nichemarket presence for itself in this emerging digital space the entire team has workedextremely hard under difficult circumstances to solidify the company's position in what isa very competitive environment.

I sincerely would like to thank you for your support to DQ Entertainment and I remainoptimistic about our future in the animation TV and feature film content industry.

OPERATING HIGHLIGHTS:

Most notable amongst this year's achievement is the success launch of our 2nd IP"The New adventures of Peter Pan". The first season has done exceedingly welland our Broadcast partners - ZDF Group Germany Tele Quebec Canada and De Agostini GroupItaly have already given their go for the 2nd season. Most notable amongst theseproperties are:

PRODUCTIONS SUCCESSFULLY COMPLETED AND DELIVERED:

• NFL2 20 x 22' CGI / 2D TV Series with Rollman Entertainment USA for Nick Toons(USA) has been successfully delivered.

• Iesodo - 10x13' CGI TV series with Rollman Entertainment (USA)

• Lanfeust Quest - 26 x 22' 3D TV series coproduced with Gaumont Alphanim (France)

• The Rising Star - 26 x 22' 2D TV series coproduced with TMS Entertainment(Japan) and Kodansha (Japan)

• Peter Pan (Season 1) - 52 x 11' 3D TV series co-produced with Method Animation

• DVD's and Pilots namely Turk Ethel & Ernest Court update and G-Soccer.

• Rotomation - 90 Mns DVD 3D HD - Oyster Blue Corporation

• Lancer Man home video movie - 3D 88 mns -Oyster blue Corporation

NEW PROJECTS SIGNED IN THE YEAR 2013-14

We have signed new co-productions/work-for hire contracts with international partnersfor delivery over the next 18-24 months as follows:

• Leo & Pisa gang - 52 x 11' CGI TV series with MPP (Germany)

• Shabiyate - 15 X 13 CGI TV series with Fanar Productions

• Miles from Tomorrow Land 24X22 with Wild Canary USA

• Project Popples 52 x 11 with Zag ToonsUSA

• Seven Dwarfs and Me 26 X 22with Method Animation France

PROJECTS IN PRODUCTION:

Our production pipeline continues to be robust optimizing the utilization of man andmachine resources. The under mentioned are currently in production to be progressivelycompleted for delivery in 2013-14.

• The Jungle Book Season 2 - 52 x 11 3D TV series being coproduced with ZDF TV(Germany) TFI TV (France) Moonscoop (France) ZDF-E (Germany)

• Jungle Book Christmas Special - CGI TV Feature coproduced with ZDF TV (Germany)and Moonscoop (France)

• Lassie & Friends - 52 x II' 2D TV series being coproduced series withDreamWorks Classics (USA) TFI (France) ZDF (Germany) and Noga (Israel)

• Robin Hood Mischief in Sherwood - 52 x II 3D TV series being coproduced withMethod Animation (France) TFI (France)ATV (Turkey) De Agostini (Italy) and ZDF(Germany)

• Manav - 65' 2D TV Feature with Disney India

• Little Prince Season 3 - 26 x 22' CGI TV series - third season of this iconicseries with Method Animation (France) France Televisions and RAI (Italy)

• NFL Season 3 20 x 22' CGI / 2D TV Series with Rollman Entertainment USA forNick Toons (USA)

• Shabiyate - 15x13 CGI TV series with Fanar productions

• Pocket World - 60 Mns DVD 3D HD -Real Heart Limited

• Motion Maker - 45 Mns TV Feature 3D HD -Smart Silver Limited

• Wyland's Universe - 90 mins DVD -Jayna Mid East

• The Zula Man - 70 mins DVD -Smart Silver Limited

• T- tales Inside - I10 mins DVD -Real Heart Limited

• Witch wonders - 140 mins DVD -Bright Action Limited

IPs CURRENTLY IN DEVELOPMENT:

• 5 & IT - 52 x II' 3D HD TV series to be coproduced with ZDF Enterprises(Germany)

• The Adventures of Pinnochio - 52 x II' TV series under development by our IPcreative team

• The Jungle Book Feature Film - 90' 3D stereoscopic feature film

Licensing and Distribution

Our licensing and distribution efforts help us to monetize our IP's acrossinternational markets. The deals signed during the year are as under:

NO PROPERTY BROADCASTER TERRITORIES
1 JUNGLE BOOK 1 Univision USA & Puerto Rico
2 Knowledge Network British Columbia
4 Viacom 18 Media Private Limited Indian Sub Continent
5 JUNGLE BOOK 2 The Educational Broadcasting System Korea
6 ABC Broadcasting Australia
7 Green Narae Media Korea
8 JUNGLE BOOK SAFARI Workpoint Thailand
9 Media Entertainment Services UAE Bahrain Omar Qatar Lebanon Egypt Iran
10 PETER PAN Rai Cinema Italy
11 Sky Italia Italy
12 Green Narae Media Korea
13 De Agostini Italy & Italian speaking Europe
14 ROBINHOOD ZDF Germany & German speaking Europe
15 2 X 2 Russia
16 Clear Vision UK
17 IRON MAN 2 A Parent Media Co Canada
18 South African Broadcasting Corporation South Africa
19 Radio Television Malaysia Malaysia

LICENSING AND MERCHANDISING DEALS SIGNED IN 2013-14

s. no property licencees TERRITORIES
I Showtime Attractions Extension Australia & New Zealand
2 BBS S.p.A Italy San Marino Vatican City
3 Seri Systems (for EuropeRussia Turkey) exclusive Europe
4 Technoplast Chile & Peru
5 Newco International US Canada
6 Kellytoy USA Inc. US Canada South Africa
7 Inkology US Canada
8 Milestone US Canada
9 Playrific Worldwide
10 JUNGLE BOOK Craftstone Group Ltd. All of Europe excluding Germany and German Speaking Europe including Austria and Switzerland) and Asia
II Gruppo Cartorama Italy
12 Wimpy Marketing South Africa Swaziland
Botswana Mauritius Namibia
13 Dragon-I Toys Limited Global excluding U.S. Canada
SA AUS & New Zealand
14 Harlequinn International Group Pty Ltd Australia
15 Jilcroft Pty Ltd (MJM Australia Imports) Australia
16 Brand Licensing South Africa CC Africa & S. Africa
17 Synergy IT EMEA North America South America Australia
18 Spafax Airline Network Inflight Entertainment only
19 Universal Music for JB 2 Worldwide
20 King Trade Limited (A unit of King Animation) Latin America excluding Arzentina Uruguary bolivia Mexico China south Korea and Japan Phillippines Malaysia Thailand Singapore Vietnam HongKong Taiwan
21 JUNGLE BOOK Great Chance Limited Middle east + Northern Africa
22 Jayna Mid East FZE East Europe CIS including Russia
23 22D Music Group Worldwide
24 RanocchioRe Italy San Marino Vatican City
25 PETER PAN Nestle Italy San Marino Vatican City
26 Tendenze srl Italy San Marino Vatican City
27 22D Music Group Worldwide
28 FELUDA TV SPECIAL - The detective series - 60 Mins - (L & M) Smart Silver Limited UAE Bahrain Oman Qatar Kuwait Saudi Arabia Iran Lebanon Jordan & Egypt.
29 FELUDA TV SPECIAL - The detective series Television rights and Home video rights UAE Bahrain Oman Qatar Kuwait Saudi Arabia Iran Lebanon Jordan & Egypt.
30 SURYA PUTRA - "The star Boy" - (L & M) USA and EUROPE
31 SURYA PUTRA - "The star Boy" - Television rights and Home video rights King Trade Limited USA and EUROPE

OUR KEY STRATEGIC PRIORITIES FOR THE FORTHCOMING YEAR INCLUDE:

• VFX for Hollywood live action movies especially.

• Exploitations of IP's through Digital Media Distribution channels such asYouTube Amazon Hulu etc.

• Mobile gaming for IOS and Android platforms

• Accelerate distribution in untapped markets such as Eastern Europe and LatinAmerica

OUTLOOK :

Our focus markets are primarily in Europe USA and Canada followed by Asia Middle Eastand Latin America. US surely has moved forward from subdued conditions while Europe isstill under recessionary conditions though production improvements have been seen inFrance Germany UK and Italy. We remain optimistic with US and Canada leading the growthpath for TV and animated feature film markets which your company is taking full advantage.

APPRECIATION :

I sincerely thank our valued stakeholders and board members as well as our partners'worldwide and valued clients business associates bankers and government authorities fortheir continuous support and trust.

Tapaas Chakravarti CMD & CEO 30 May 2014