IDFC SSKI Emerging Stars Conference 2009 February 5, 2009 1 Disclaimer Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in our business segments, change in governmental policies, political instability, legal restrictions on raising capital, and unauthorized use of our intellectual property and general economic conditions affecting our industry. ENIL may, from time to time, make additional written and oral forward looking statements, including our reports to shareholders. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company. 2 Presentation Path • Times Group • Indian Media Industry • ENIL Overview • Financial Highlights • Strategic Direction 3 Times Group 4 Corporate Structure Bennett Coleman & Co. Limited Publishing Division Times Internet Times Global Private The Times of India Limited Broadcasting Treaties The Economic Times Navbharat Times indiatimes.com News Channel – Maharashtra Times Times 58888 Times Now Sandhya Times Infotainment Business News Times of Money Vijay Times Media Limited – ET Now Zoom Entertainment & Retail Entertainment Times Music Network TIML Global Ltd. Mirchi Movies Ltd. Mopix Animation Ent. Channel – Zoom Times Wellness Times Multimedia World Wide Entertainment Media Network (India) (JV with BBC) Limited Times Business Femina Solutions Ltd. Radio Mirchi Filmfare Top Gear Timesjobs.com Grazia SimplyMarry.com Others Magicbricks.com TIM ABSL Times OOH 360Degrees 5 Indian Media Industry 6 Ad Revenues Forecast for 2009 • As per Group M, overall ad industry to grow at ~9% in 2009 • TV, radio, and internet to outperform overall industry • Low cost media like internet and radio to grow much faster • Growth of print sector to be lower than TV due to higher exposure to real estate, auto, and travel, and lower FMCG contribution 7 India Media Industry - Growth Drivers GDP Growth rate of 6% - 7%, Ad spend growth – 9% Young nation with Higher spending Media & Low Media power Entertainment Penetration – Industry Untapped rural Largest workforce in markets the world Regulatory reforms (PPP) & Foreign Investment 8 ENIL Overview Our Vision is to be “A Leading City-centric Media Company By Delivering Unique Audiences Through Media Vehicles Like FM Radio, Experiential Marketing And Out-of-home Media” 9 Company Snapshot Headquarters: Mumbai, India Incorporated: 1999 Listed: February 15, 2006 Subsidiaries: Times Innovative Media Limited (TIM) Alternate Brand Solutions Limited (ABSL) Businesses: – ENIL Radio Broadcasting brand Radio Mirchi – TIM Out-of-home Media brand Times OOH – ABSL Experiential Marketing brand 360 0 Experience FY08 Consolidated Total Rs. 4,168.4 mn, including other income of Rs. 33.7 Income: mn FY08 Consolidated EBITDA: Rs. 354.9 mn EBITDA Margin: 8.5% 10 ENIL: Building an ‘emerging media’ network • Comprehensive emerging media Company Structure offering Company Business Brand Flagship company of – Network of emerging media (radio, BCCL “The Times of India” group OOH & event management) 100% • Radio: India’s leading private FM radio network - with 32 stations TIML under the Radio Mirchi brand 64.2% 7% • OOH: Largest organized OOH Radio: India’s largest Pvt FM network player in India with a formidable ENIL Broadcasting Activations portfolio of contracts including the Delhi & Mumbai international Out Of Home Media 83.45% Airports airports TIM Street Furniture Billboards • Event Management : Executing big- ticket events; developing own events Events and Promotion – Ford Super Models, Smart Living 100% Life Style & Entertainment ABSL Conferences Awards, Miss Teen Diva & Mr. India Corporate Events (World) 11 Mirchi – Presence across Key Indian Cities Ahmedabad Jallandhar Pune Aurangabad Kanpur Panjim Bangalore Kolhapur Raipur Bhopal Kolkata Rajkot Chennai Lucknow Surat Coimbatore Madurai Vadodara Delhi Mangalore Varanasi Hyderabad Mumbai Vijayawada Indore Nashik Vishakhapatnam Thiruvananthapuram Jabalpur Nagpur Jaipur Patna Market Leader in Indian Private FM Radio Industry 12 Innovative Content & Experience in managing diverse markets • Innovative Content: – Strong relationships with Hindi, Tamil , Telugu, Kannada, Malayalam and Bengali film fraternity – Unique shows with participation of popular filmstars – Exclusive music breaks – Dedicated Bollywood shows – Mature research culture – music/listenership • Success in Diverse Markets – Experience in establishing superior linkage between Marketing and Programming – Customized content in 10 distinct languages 13 Strong Brand • Listeners: – As per RAM data, Mirchi is leader in Delhi, Mumbai, Kolkata and Bangalore put together with weekly listnership of 16.2 million (total market listership 24.2 million) – Leadership in all key markets – According to the Indian Readership Survey (IRS) Round 2 (R2) conducted by Media Research Users' Council (MRUC) and Hansa Research, Radio Mirchi attracted a listenership (yesterday listenership) of 16.34 million during the period July 2007 – June 2008, much ahead of all other FM radio players • Media buyers: – Category building initiatives – Mirchi Kaan Awards – Radio works – Other innovations: – One-sec billing – Offering studio facilities for jingle production – In the recent Pitch-IMRB survey, Mirchi was declared #1 media brand in the country – ahead of reputed brands like Times of India, Star Plus and Sony TV channel 14 FM Radio - Evolution 2006- 07 • Multiple Frequency • License Tradability • Networking 1999-2005 • Radio ad spend share • Completion of Phase – - 8.5% II Licensing • Technology Before 1999 • Increased Competition developments • Phase – I Licensing • Improving profitability • Internet Radio • Limited Private Participation • Growth in radio ad spend • Strict Regulatory norms Radio in growth phase • No privatisation • Introduction of revenue • Government Run radio sharing in 2005 2008 Channel Radio in infancy Radio a “dead industry” 15 FM Radio – Draft Phase 3 Policy • 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 40% of total channels in the district • News and Current affairs on FM Radio may be permitted • FDI /FII limit to 26% from present 20% for news radio channels and 49% to non-news radio channels • Change in ownership or further dilution shall be permitted after a period of three years from the date of operationalisation • Networking of FM radio programs across the radio network • First Right of Refusal to existing radio operators for renewal of the radio license 16 Key Operating Highlights - Q3FY09 Radio Business • Private FM radio industry degrew by approximately 7%-9% during the quarter • Mirchi retained market leadership with approximately 40-41% share of private FM radio industry • As per RAM data, Mirchi is leader in Delhi, Mumbai, Kolkata and Bangalore put together • Radio Mirchi website was recently voted the best website in the TV and radio space by Metrix and AC Nielsen. • Its Corporate Social Responsibility efforts were also recognized with a silver medal at the Pegasus Awards 17 Times OOH: Creating a Pan India presence Expanding across India • On high growth trajectory City Contracts – Largest organized player Mumbai Mumbai International Airport Ltd (MIAL) 1,400 bus queue shelters – Formidable portfolio of OOH assets in 8 Patel Bridge Delhi Delhi International Airport Ltd (DIAL) cities Delhi-Noida-Delhi Flyway Delhi Metro Rail • Mix of long and medium term lease on Kolkata 66 Billboards tendered properties Pune 8 Billboards Hyderabad 200 bus queue shelters + EMR for flyover • Includes key assets in high traffic/footfall Bangalore 281 + 132 (EMR) bus queue shelters areas Chandigarh 8 bus queue shelters Jaipur 28 Unipoles • Revenues poised to grow Presence in all segments – Infusion of capital by PE funds Revenue Margin Capex Airports, metros, Moderate Moderate • Goldman Sachs & Lehman Brothers Transit High bus-backs, taxis invested Rs. 2bn for a 16.56% (8.28% Street Bus queue Moderate High High each) stake Furniture shelters, kiosks Static, digital, Moderate Moderate Moderate – Focus on Innovation & Technology Billboards mobile • Customized solutions through new Moderate technologies - video walls and remote- Alternative Others High High access hoardings 18 Milestones • Introduced LEDs in India 2008 • Won Patel Bridge, Dwarka Metro, DND Flyover & 2007 Kolkata Billboards 2006 • Investment by Goldman TIM is incorporated and Sachs and Lehman business is transferred • Won Delhi and Mumbai Brothers from TIML Aiports • Won contract in four • Won Pune Billboards new cities i.e. 2005 • Two long tenure contract Bangalore, Hyderabad, renewals Jaipur & Chandigarh • EMR in Delhi, Bangalore and 2002 Hyderabad Foray in OOH business with Mumbai BQS contract 19 Alternate Brand Solutions Ltd. “Business of Ideas” Creative Solutions Property Ownership Driving Sustainability “Preferred Corporate Partner” Innovation in execution 20 360° Experience: Eventful Consumer Engagements • Focus on owned properties – Ford Super Models 2008, India – Teen Tiva Beauty Pageant