Sun TV Network Limited

The Sun never sets in the South !

JUNE 2015 1 Disclaimer

Some of the statements made in this presentation are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the Directors and Management of Sun TV Network Ltd. (STNL) about its business and the industry and markets in which it operates.

These forward-looking statements include, without limitation, statements relating to revenues and earnings. The words “believe”, “anticipate”, “expect”, “intend”, “estimate”, “project” and similar expressions are also intended to identify forward-looking statements.

These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of STNL and are difficult to predict. Consequently, actual results could differ materially from those expressed or forecast in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risk. STNL does not undertake to update these forward-looking statements to reflect events or circumstances that may arise after publication.

2 Sun TV Network Business Verticals

v Television Broadcasting

v FM Radio Broadcasting

v Movie Distribution/Production

v SunRisers – – IPL Franchise

3 Corporate Structure

Sun TV Network Ltd (Broadcasting , Production, Entertainment)

97.78 % 59.15 % subsidiary subsidiary

Kal Radio Ltd (Radio) South Asia FM Ltd (Radio)

18 FM Radio licenses 23 FM Radio licenses Focused on southern cities Focused on Northern, Eastern & Western parts of the country Divisions of STNL

Strategic alliance with RED FM (Radio) 48.9 % beneficial interest SunRisers (Movie Hyderabad Distribution / (IPL Franchise) 3 FM Radio stations in Production) Mumbai, and Kolkata

4 Presence across genres in 4 States, 33 channels

State / Language / / Karnataka / Kerala / Channels Tamil Telugu

General Entertainment Movies

News

Music

Kids

Comedy

High Definition

Life

Action

Rest of

5 Television Broadcasting

6 TV Broadcasting Outlook Revenues driven by Advertising and Subscription

2015P 2019P

v Accounts for ~ 40% of total ad-spends in India driven by Hindi & Regional ad-spends

TV Advertising spends v Entertainment genre continues to be the largest TV Advertising spends Rs 175 bn ad spend driver followed by news and sports Rs 299 bn v Emergence of “Targeted advertising” through Niche channels

v Currently revenues concentrated with last mile v Digitalization will ensure broadcasters to claim TV Distribution market their legitimate share in the near future TV Distribution market v Alternate distribution platforms to fuel growth Rs 369 bn à DTH, CAS, HITS, IPTV Rs 676 bn v Overseas subscription à continues to offer a huge untapped growth opportunity

Regional Broadcasters all set to benefit from increasing focus of national advertisers on India’s rising rural consumption and from digitalization of TV distribution space

Source: KPMG / FICCI Media Report 2015 7 South India TV Broadcasting

Enviable Viewership Share

v South Indian Channels accounted for ~30 -32 % share of total viewership

Fast growing Ad market

v South Indian Channels enjoy ~22 % share of total Ad revenues, higher than viewership share

v Addressable Ad market pegged at Rs ~60 billion, growing at a fast pace

v Regional TV in the South strongly backed by Regional / Local advertisers along with National advertisers

Large Subscription Revenue Potential

v South India has over ~60 mn households, with C&S penetration of 83%

v Digitization to enhance addressability of distribution market – a strong fillip to total subscription revenues

Source: KPMG / FICCI Media Report 2015, Market Estimates 8 Sun TV Network’s Television Broadcasting Business

9 Leadership by a Huge Margin

v Largest TV Network in South India; also the largest regional TV Network in India

q Penetration, Viewership & Ad Revenues

q Dominant Market Share in each of the States;

v Well conceived strategy of segmenting the addressable market under way, ahead of digitization

q Array of flanking channels across genres like Kids, Action, Comedy, Life.

q Assortment of fiction and non-fiction content mixed with movies across channels.

10 Great Content + Sound Business Practices = Robust Business

v An innate ability to stay ‘ahead of the curve’

q Anticipate and shape market trends q Innovation and leadership q State of the art technology

v Absolute respect for Content

q Access to variety of content q Exclusive contracts with leading content producers; an ecosystem that is fiercely loyal q A formidable movie library with perpetual and exclusive rights

v Prudent Business Practices

q Tight control on content costs; extremely conservative on leverage q Unique business model that mitigates risks

11 Strident Growth in Advertising Revenues

v Advertising Revenue Ad market size q Increasing trends of higher ad Language (Rs bn) spends in the South Tamil 30.0 Telugu 20.0 q Medium of choice for large Kannada 6.0 advertisers in India. Malayalam 4.0 Total 60.0

Broadcasting Industry Revenue Sun TV Revenue (Rs bn) (Rs bn) 200 12.0 180 175 CAGR ~ 7.61% 11.4 CAGR: 11.18 % 10.7 155 10.0 10.5 160 9.7 136 9.5 140 8.0 116 125 120 103 7.9 100 6.0 80 60 4.0 40 2.0 20 0 0.0 FY10 FY11 FY12 FY13 FY14E FY15P FY10 FY11 FY12 FY13 FY14 FY15

Source: KPMG / FICCI Indian Media and Entertainment Industry Report 2015 /Television / Market Estimates 12

Television Distribution Platforms

13 Subscription revenues to drive growth

Sun TV Subscription revenues v Over 60% share of Subscription revenue from South 9000 Rs. mn v Increasing DTH penetration 8000 v Digitization legislation is a disruptive upside; 7000 5265 6000 could treble Pay TV revenues in the near future. 4483 v 5000 Phase I and II completed with reasonable 2881 3326 3728 4000 success. 3000 1829 1962 2115 v Revenue opportunities from the South Indian 2000 2142 1630 1392 1569 diasporas in overseas markets being further 1000 1250 1377 560 690 843 1031 tapped. 0 FY10 FY11 FY12 FY13 FY14 FY15 Television C&S DTH Revenue Pay Channel Revenue Overseas Income Households households households TV HH and C&S penetration of TV HH 200 92% Language (mn) (mn) (mn) 196 180 90% 90% 160 88% 168 Tamil 17.7 16.4 15.9 140 161 86% 120 84% 100 82% 82% Telugu 20.9 15.1 14.8 80% 80 80% 60 78% Kannada 13.5 10.0 9.9 households Millions 40 76% 20 74% Malayalam 8.1 7.6 7.1 0 72% 2013 2014E 2019P Total 60.2 49.1 47.7 Television households (mm) Paid C&S penetration of TV households (mm)

Source: KPMG / FICCI Indian Media and Entertainment Industry Report 2015 /Television - Market Estimates 14 Mandatory Digitization provides fillip to subscription revenues

v Government of India has mandated digitization of TV distribution systems in India with the following timelines

Deadline for Estimated homes Phase Cities Covered digitisation Total South 4 Metros (New Delhi, Mumbai, ~ 2 mn 1 Kolkata, Chennai) 30/10/2012 ~ 12 mn

38 Cities /Mysore/ 2 (Population > 1Mn) 31/03/2013 ~ 22 mn Hyderabad/Vizag/ Coimbatore ~ 4 mn

Other Urban Areas 31/12/2015 ~ 32 mn ~ 14 mn 3 Rest of India 31/12/2016 ~ 73 mn ~ 28 mn 4

Source: Ministry of Information Broadcasting / Market estimates

v Mandatory Digitization legislation is a disruptive upside; could treble Pay TV revenues in the near future. v Phase I and II completed with reasonable success. v Phase III and IV extended to be completed on or before 31 Dec 2015 and 31 Dec 2016 respectively.

Source: KPMG / FICCI Indian Media and Entertainment Industry Report 2015 /Television - Market Estimates 15 Digitisation . . . . .

Digital penetration of Pay TV subscribers

100 100 100 100 99 % 90 80 Subscribers 77 60 57 40 28 20

0 Hong Malaysia Singapore Indonesia Japan Si Lanka Thailand India Kong Source: Credit Suisse report titled, India Media Sector, dated April 16, 2013

Pay TV penetration is surprisingly high India’s pay TV ARPU less than most countries’

100 98 Pay TV penetration 100 TV households 80 Pay TV ARPU (USD) 80 83 60 60 54 50 80 40 48 40 71 35 35 56 20 20 20 16 20 0 3 7 India China Australia Korea Malaysia Thailand UK Vietnam 0 India China Malaysia Thailand Brazil UK USA Source: Asia Television Advertising, Credit Suisse estimates Source: PWC-CII Media Industry report 16 An Expanding Global Footprint

Rogers Cable ,Bell

Sun TV Network Europe Limited

Echostar –Dish, Channel Live , IPTV, Yupp TV, VU Clip, Global Take Off, UAE –Gulf, Google Ireland Bom TV

Malaysia -Measat

Sri Lanka – MTV, Dialog Multichoice TV Africa Singapore - Measat

Sun TV Australia, Fetch TV

Paid subscriber base of over ~0.6 mn in overseas markets 17 F M Radio Broadcasting

18 India’s Largest FM Radio Network

v Two subsidiaries

q Kal Radio Limited and South Asia FM Limited v 46 stations operational

q 7 stations under Brand Suryan FM in Tamil Nadu

q 39 stations under Brand Red FM in the Rest of India v Strong Revenues from the Metro stations

q Metro stations account for 50% of total Radio Revenues v Well poised in mini metros

q Future growth to be driven by mini metros

19 India’s Largest FM Radio Network With a Pan India Footprint

20 India’s Largest FM Radio Network With a Pan India Footprint – 46 stations

Karnataka & Tamil Nadu & West - 8 North & East - 16 Andhra Pradesh -13 Kerala - 9

• Chennai • Bangalore • Ahmedabad • Allahabad • Asansol • Coimbatore • Cochin • Aurangabad • Gulbarga • Jaipur • Bhopal • Hyderabad • Bhubaneswar • Kannur • Madurai • Mumbai • Delhi • Pondicherry • Kozhikode • Nagpur • Gangtok • Rajahmundry • Mangalore • Nasik • Guwahati • Tirupati • Mysore • Pune • Indore • Tirunelveli • Thrissur • Rajkot • Jabalpur • Jamshedpur • Trichy • Trivandrum • Kanpur • Tuticorin • Kolkata • Warangal • Lucknow • Vizag • Shillong • Vijayawada • Siluguri • Varanasi

21 Sun TV Network’s Radio Broadcasting Business Well poised to exploit the Radio Renaissance

v Increasing share of Radio in total ad pie

q Current share of Radio in total ad pie at ~ 4.5% compared to global average of ~8%

v Cost effective medium

q SMEs and local advertisers to drive growth

v Share of regional advertisers to increase

q Share to increase from current ~ 40% to global average of ~ 60%

v Phase III to facilitate penetration into tier II & tier III cities

q Increased national reach

v Positive regulatory reforms to further accelerate growth q Content restrictions to be liberalized q Ownership of multiple licenses in same city q Infrastructure sharing between stations

22 Sun TV Network Business Verticals A Recap

v TV Broadcasting

q India’s No 1 TV Broadcaster v F M Radio Broadcasting

q India’s largest private FM player v Movie Distribution / Production

q One of India’s largest Corporate Movie Distribution / Production houses v SunRisers – Hyderabad – IPL Franchise

q An opportunity to blend the India’s most loved and watched Game of “” with Media & Entertainment

23 Financials

24 Standalone Financial Summary - Audited

(Rs Crores) FY 15 FY 14 FY13 FY 12 FY 11 FY 10

Advertising Revenue 1,136.1 1,067.0 1,049.7 945.4 970.2 788.7

Telecast Fees 114.6 127.3 143.6 164.0 153.7 134.3

Subscription 875.7 769.5 615.1 579.9 571.3 395.8 (Analogue + DTH + Overseas)

Other Revenues 117.2 132.9 9.2 68.1 228.5 76.2

Total Revenues 2,243.6 2,096.7 1,817.6 1,757.4 1,923.7 1,395.0

Total Income 2,331.4 2,175.9 1,872.6 1,831.6 1,970.5 1,437.5

EBITDA 1,614.2 1,461.7 1,376.9 1,400.7 1,557.9 1,110.6

EBITDA % 72% 72% 76% 80 % 81 % 80 %

PAT 737.2 716.9 683.3 694.7 772.2 567.4

PAT % 32% 33% 36% 38 % 39 % 39 %

EPS in Rs. (FV Rs.5.00) 18.71 18.19 17.34 17.63 19.60 14.40

Capital Employed 3,401.7 3,197.8 2,921.3 2,679.0 2,426.7 2,048.9

25 Standalone Financials

EBITDA Total Revenues (Rs bn) (%) (Rs. bn) 20.0 81 80 80 81 25.0 CAGR ~ 9.97 % 22.4 20.9 15.0 76 20.0 19.2 18.2 17.6 15.6 76 14.0 11.1 15.0 10.0 14.0 72 13.8 70 71 10.0 5.0 14.6 5.0 16.1 0.0 66 0.0 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 EBITDA EBITDA Margin (RHS)

Profit after Tax (PAT) (Rs bn) (%) (%) ROCE & RONW 10.00 50 60 40 39 38 48 8.00 36 40 45 41 33 32 40 37 36 34 6.00 7.70 30 5.70 30 35 4.00 7.00 20 20 28 25 7.00 24 23 2.00 7.17 10 0 0.00 7.37 0 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 PAT PAT MARGIN (RHS) RoCE RoNW

FY12 – Impacted by one time income from the film and reorganization of TN analog cable network & FY14 – Impacted by first year IPL losses

ROCE = EBIT/Average Capital Employed; RONW = PAT/ Average Net worth 26 Consolidated Financial Summary - Audited

(Rs crores) FY 15 FY 14 FY 13 FY 12 FY 11 FY 10

Advertising Revenue 1,289.4 1,194.4 1,155.5 1,029.4 1,053.2 845.0

Telecast Fees 114.6 127.3 143.6 164.0 153.7 134.3

Subscription 875.7 769.4 615.1 587.2 578.0 397.6 (Analogue + DTH + Overseas)

Other Revenues 115.7 132.4 8.8 66.6 228.5 76.1

Total Revenues 2,395.4 2,223.5 1,923.0 1,847.2 2,013.5 1,452.8

Total Income 2,494.3 2,310.2 1,995.2 1,926.7 2,062.2 1,487.8

EBITDA 1,677.2 1,508.0 1,409.1 1,414.3 1,577.9 1,090.9

EBITDA % 70% 68% 73% 77 % 78 % 75 %

PAT 782.1 748.0 709.6 692.9 769.8 519.9

PAT % 31% 32% 36% 36 % 37 % 35 %

EPS in Rs. (FV Rs.5.00) 19.84 18.98 18.01 17.62 19.53 13.19

Capital Employed 3,518.8 3,255.2 2,939.1 2,668.5 2,419.8 2,044.5

27 Consolidated Financials

EBITDA Total Revenues (Rs bn) (%) (Rs. bn) 20.0 81 25.0 78 15.0 77 20.0 22.2 75 20.1 76 19.2 73 15.0 18.5 10.0 15.8 14.5 71 10.9 71 10.0 14.1 10.4 5.0 7.4 68 15.1 5.0 0.0 14.0 66 0.0 FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10 FY11 FY12 FY13 FY14 EBITDA EBITDA Margin (RHS)

(Rs bn) Profit after Tax (PAT) (%) (%) ROCE & RONW 10.00 40 60 38 38 49 8.00 38 41 37 36 36 36 40 34 34 6.00 36 7.70 35 29 4.00 33 33 34 20 28 27 22 24 5.20 6.93 2.00 3.40 32 7.16 0 6.83 0.00 30 FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10 FY11 FY12 FY13 FY14 PAT PAT MARGIN (RHS) RoCE RoNW

FY12 – Impacted by one time income from the film Enthiran and reorganization of TN analog cable network & FY14 – Impacted by first year IPL losses

ROCE = EBIT/Average Capital Employed; RONW = PAT/ Average Net worth 28 The Journey since F Y 2007 - 08

Total Income grew at CAGR of 14.10 % Advertising Income grew at CAGR of 13.56% 1.049.70 1,067.04 1,136.09 970.20 945.42

1.970.50 2,175.99 2,331.45 788.72 (Rs. Crs) 1,831.57 1,872.60 (Rs. Crs) 1.437.52 572.76 1,091.52 466.59 925.99

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

PAT grew at CAGR of 10.48%

(Rs. Crs) 772.22 737.23 694.65 683.30 716.96 567.38 437.11 366.98

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

FY12 – Impacted by one time income from the film Enthiran and reorganization of TN analog cable network & FY14 – Impacted by first year IPL losses

Shares of the Company were listed on 24 April 2006 in NSE and BSE 29 Dividend Payout %

Rs. Crs PAT Dividend 772.2 737.2 716.9 694.7 683.3

72% 567.4 529.3 63% 64% 61% 52% 61% 435.1 435.7 438.0 401.5

344.9

FY10 FY11 FY12 FY13 FY14 FY15

30 Thank You

JUNE 2015 31