MANY FACETS OF LIFE WHICH ARE COMMONPLACE TODAY WERE UNTHINKABLE AS OUR RECENTLY AS A FEW YEARS AGO. THERE’S CHANGE SWEEPING ACROSS CONSUMER ASPIRATIONS AND BEHAVIOUR, WHICH IN TURN, IS DISRUPTING THE DYNAMICS OF MANY TRADITIONAL INDUSTRIES. TECHNOLOGY IS ENABLING HYPER-PERSONALISATION AND HYPER-LOCALISATION. YET, WORLD IS RELATIVELY ‘OLD-WORLD’ VALUES SUCH AS TRUST, DELIVERY AND QUALITY REMAIN RELEVANT. WITNESSING MUTUALLY EXCLUSIVE OR TWO SIDES OF THE SAME COIN? THE WORLD IS IN THE THROES OF REMARKABLE CHANGE. IT IS SWEEPING ACROSS A FRENETIC EVERY FACET OF LIFE. FY 2015-16 WAS A REMARKABLE YEAR ON MANY FRONTS. INDIA ACHIEVED A RECORD PACE OF GROWTH, AND CAME TO BE ACKNOWLEDGED AS THE WORLD’S BRIGHT SPOT. AS ONE OF THE WORLD’S MOST PROMINENT GLOBAL CONTENT BRAND, ZEEL HAS LED THE INDUSTRY THROUGH ITS TRANSFORMATIONAL CYCLE WITH A ROBUST BLEND OF CHANGE. CONSISTENT PERFORMANCE AND AN EARLY ADOPTION OF CHANGE. IN 2015-16, ZEEL MAINTAINED ITS TRACK RECORD OF DELIVERING AN INDUSTRY- LEADING PERFORMANCE ACROSS KEY METRICS. WE CONTINUED TO REMAIN FOCUSED ON DELIVERING HIGH-IMPACT CONTENT THAT OUR VIEWERS LOVE. WE DO THIS BY BEING TRUE TO OUR VALUES AND OUR STRATEGIC PRIORITIES. YET, THERE IS VISIBLE CHANGE. WE ARE STRUCTURING OUR BUSINESS AND OPERATING FRAMEWORK WITH A CLEAR FOCUS ON DIVERSE REVENUE STREAMS. WE ARE REALIGNING OUR CONTENT STRATEGY TO CONVERGE SEAMLESSLY WITH THE DIGITAL ECOSYSTEM. WE ARE OFFERING MORE HOLISTIC SOLUTIONS TO OUR ADVERTISERS TO LEVERAGE THE POWER OF OUR NETWORK BETTER. FOR US AT ZEEL, OUR BUSINESS IS ALL ABOUT CELEBRATING EMOTIONS AND DELIVERING POSITIVE OUTCOMES TO ALL STAKEHOLDERS. BEING TRUE TO OUR ETHOS, CONTINUING TO LEAD BY INNOVATION, AND AN ABILITY TO ANTICIPATE AND EMBRACE THE NEW, ARE ENABLERS OF OUR SUCCESS. HERE’S TO CONSISTENCY. CHANGE.HERE’S TO 2 ANNUAL REPORT 2015-16 CONSISTENCY & CHANGE ZEEL AT A GLANCE HIGHLIGHTS FY 2015-16 ZEEL IS A WORLDWIDE MEDIA BRAND OFFERING CONTENT IN MULTIPLE 17.9% LANGUAGES, WITH A NETWORK SHARE STRONG PRESENCE IN FAMILY 171 COUNTRIES AND A TOTAL ` VIEWERSHIP OF OVER 58,515 1 BILLION PEOPLE AROUND MILLION TOTAL REVENUE IS MY THE GLOBE. CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS 3 A THE WORLD OF ZEE BC ZEEL is proud to be a part of the Essel Group which has completed 90 glorious years. Essel Group’s journey has been exciting and challenging. Today, the Group is a multi-billion dollar business conglomerate, present across diverse businesses such as media, entertainment, packaging, infrastructure, education, technology and so on. The Group caters to various customer segments in 171 countries globally. From a humble beginning in 1926, in Mandi Adampur, the Essel Group has today transformed into a vibrant conglomerate, efficiently managed by the 5th generation of its founders. MISSION TO BECOME THE WORLD’S LEADING GLOBAL MEDIA COMPANY FROM THE EMERGING MARKETS. AS A CORPORATION, WE ARE DRIVEN BY INNOVATION AND CREATIVITY THAT FOCUSES ON GROWTH, WHILE DELIVERING EXCEPTIONAL VALUE TO OUR CUSTOMERS, OUR VIEWERS AND ALL OUR STAKEHOLDERS. With a strong presence in over 171 Brand ZEEL has added value to the lives ZEEL has bagged many distinguished ` countries and a total viewership of 1 of its internal and external stakeholders awards since its inception. Notable Billion plus people around the globe, Zee which include shareholders, bankers, amongst them have been the Dun & Entertainment Enterprises Ltd. (ZEEL) investors, employees and business Bradstreet Corporate Award and the IMC is a worldwide media brand offering partners; since the day of its launch in Award for Excellence in Media. 10,267 content in multiple languages. ZEEL is 1992. ZEEL considers each one of these MILLION preponderate in its homeland, India and stakeholders as integral members and It has also been ranked as the number is the largest global content company aims at making the entire world a part of one brand in the media category, in PROFIT AFTER TAX across genres and platforms, with this large, proliferating family. Inspired by prestigious rankings like the ET 500 and more than 2,22,703 hours of television this thought, ZEEL embraces the concept Fortune 500. content. It comprises of 38 international of ‘Vasudhaiva Kutumbakam – The World ` and 33 popular domestic channels, is My Family’, as its underlying ethic and making ZEEL an all-encompassing, brand positioning. globally appealing brand. With rights to more than 3,818 movie titles from 15,095 premiere studios featuring iconic film MILLION stars, ZEEL houses the world’s largest Hindi film library. EBITDA 4 ANNUALANNUAL REPREPORTORT 2015-162015-16 CONSISTENCYCONSISTENCY & CHANGE ZEEL - GLOBALLY ACCLAIMED “ZEEL IS A PIONEER IN PRIVATE SATELLITE TV SPACE AND HAS ZEEL AS A GLOBAL CASE STUDY INSEAD, one of the world’s leading ACHIEVED NOTEWORTHY SUCCESS and largest graduate business schools published a comprehensive case study IN A SHORT TIME SPAN. about ZEEL. It was titled ‘Act Globally, Think Globally: ZEE Entertainment’s THE REMARKABLE SUCCESS OF ZEE Worldwide Growth’ and was written by Stephen Mezias, Professor of IN THE GLOBAL ARENA INSPIRED US Entrepreneurship and Family Enterprise at INSEAD and Colin J. Killick. This case study is being used as a study material TO RESEARCH AND DEEP DIVE INTO for class discussion at the Institute. It gives an account of ZEEL’s international ITS ENTREPRENEURIAL JOURNEY. strategy with valuable insights from ZEEL MD & CEO, Mr. Punit Goenka as well as IT IS AMONGST THE FEW BRANDS other senior management team. The case VIEW also discusses ZEE’s Global flexibility and FROM THE EMERGING MARKETS adaptability as well as the benefits of going global. TO HAVE GAINED WORLDWIDE TRACTION.” — STEPHEN MEZIAS, PROFESSOR OF ENTREPRENEURSHIP AND FAMILY ENTERPRISE AT INSEAD WHAT MAKES ZEEL GLOBAL? >1BILLION 171 VIEWERSHIP COUNTRIES 33 38 DOMESTIC CHANNELS INTERNATIONAL CHANNELS CORPORATECORPORATE OVERVIEWOVERVIEW STATUTORYSTATUTORY REPORTSREPORTS FINANCIAL SSTATEMENTSTATEMENTS 5 A THE WORLD OF ZEE BC INTERBRAND’S BEST INDIAN BRANDS ZEEL is the only media brand to enter into Interbrand’s recently released ‘30 RANKED ACROSS Best Indian Brands Report 2015’. This reinforces ZEEL’s objective of being #1 PRESTIGIOUS ranked amongst the Top Global Media Brands by the year 2020. RANKINGS We firmly believe and espouse the ET 500 FORTUNE 500 BT 500 fact that Brand is our most treasured Intangible Asset. Interbrand’s INDIAN MEDIA BRAND INTERBRAND’S BEST INDIAN BRANDS comprehensive brand valuation methodology covers the key areas of financial analysis, Role of Brand index, and Brand Strength scores. Beyond resulting in a numeric value, Interbrand’s assessment includes an appreciation of where and how brand and business value can be cultivated. The Best Indian Brands ranking employs the same rigorous methodology that is used for Interbrand’s annual Best Global Brands report. 2,22,703 HOURS OF CONTENT 3,818 MOVIE TITLES 6 ANNUAL REPORT 2015-16 CONSISTENCY & CHANGE PORTFOLIO OF BRANDS HINDI GEC REGIONAL ENTERTAINMENT DISTINCT HINDI CINEMA ENGLISH ENTERTAINMENT SPORTS DIVERSE CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS 7 A THE WORLD OF ZEE BC HD CHANNELS MUSIC, LIFESTYLE & NICHE SELECT INTERNATIONAL CHANNELS DIGITAL OTHER VERTICALS TV on the go 8 ANNUAL REPORT 2015-16 CONSISTENCY & CHANGE KEY PERFORMANCE INDICATORS INCOME FROM OPERATIONS ` Millions 58,515 FY 2016 FY 2015 48,837 FY 2014 44,217 19.82% EBITDA ` Millions 15,095 FY 2016 FY 2015 12,538 FY 2014 12,043 20.39% PROFIT BEFORE TAX ` Millions 15,817 FY 2016 FY 2015 14,040 FY 2014 13,191 12.66% PROFIT AFTER TAX ` Millions 10,267 FY 2016 FY 2015 9,775 FY 2014 8,921 5.03% GROWING CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS 9 A OPERATIONS REVIEW BC MARKET CAPITALISATION* ` Millions 3,71,117 REVENUE FROM OPERATIONS % FY 2016 FY 2015 3,28,233 FY 2014 260,618 13.07% 6 35 59 NETWORTH ` Millions 62,315 FY 2016 FY 2015 55,498 FY 2014 47,377 ADVERTISING `34,297MILLION SUBSCRIPTION `20,579MILLION 12.28% OTHERS `3,639MILLION RONW % 16.5 DISTRIBUTION OF EXPENSES % FY 2016 FY 2015 17.6 FY 2014 18.8 28 60 12 ROCE % 25.5 FY 2016 FY 2015 25.5 FY 2014 28.1 OPERATIONAL `26,049MILLION EMPLOYEE BENEFIT `5,232MILLION OTHERS `12,139MILLION * as of 31st March 10 ANNUAL REPREPORTORT 2015-162015-16 CONSISTENCYCONSISTENCY & CHANGE 2015-16 - A YEAR OF LANDMARKS BUSINESS HIGHLIGHTS 19.8% 20.4% OPERATING PROFIT (EBITDA) REVENUE GROWTH GROWTH LAUNCH OF A NEW DIGITAL PLATFORM - OZEE LAUNCH OF A UNIQUE INITIATIVE - ZEE THEATRE ZEAL FOR UNITY - A PLATFORM TO BRING FILMMAKERS FROM INDIA & PAKISTAN TOGETHER TO COLLABORATE AND MAKE FILMS, UNIFYING THE CITIZENS OF BOTH COUNTRIES. ZEE UNIMEDIA CREATED TO CONSOLIDATE ALL CHANNEL PROPERTIES AND DELIVER BETTER ROI & VALUE TO ADVERTISERS LAUNCHED &TV IN EUROPE REGION AND ZEE SINE IN THE PHILIPPINES (APRIL 2016) LAUNCH OF DR. SUBHASH CHANDRA’S AUTOBIOGRAPHY Hon’ble Prime Minister of India, Shri Narendra Modi launched ZEE and Essel Group Chairman, Dr. Subhash Chandra’s autobiography, The Z Factor, at a ceremony in Delhi. This unusually candid memoir charts the journey of a dreamer from the time he came to Delhi as a young boy with seventeen rupees to building a multi-billion dollar business conglomerate, the Essel Group. MOMENTS CORPORATECORPORATE OVERVIEWOVERVIEW STATUTORYSTATUTORY REPORTSREPORTS FINANCIALFINANCIAL SSTATEMENTSTATEMENTS 11 A OPERATIONS REVIEW BC AWARDS ZEEL ON SOCIAL MEDIA ZEEL is one of the most socially active basis. As per the latest report of Fortune media brands in the world. We engage India 500, @ZEECorporate is the leading with our audiences and stakeholders corporate media brand on Twitter. across multiple platforms, and maintain a close connect with their views FY 2015-16 saw an exponential growth and opinions. Being responsive and in the size of ZEEL’s ‘family’, i.e., its DR.