Media & Investments Corporate Presentation FY17-18 OVERVIEW 2 Key Strengths Leading Media company in India with largest bouquet of channels (53 domestic channels and 16 international beams), and a substantial digital presence Market-leader in multiple genres (Business News #1, Hindi General Entertainment #1 Urban, Kids #1, English Entertainment #1) Key “Network effect” and play on Vernacular media growth - Benefits of Strengths Regional portfolio across News (14) and Entertainment (7) channels Marquee Digital properties (MoneyControl, BookMyShow) & Entry into OTT video (VOOT) provides option value and content synergy Experienced & Professional management team, Strong promoters 3 Building India’s leading media company 2016+ • OTT video platform, revamp of portals Filling whitespaces, umbrella branding, • Hindi Movie and Music channels thrust on digital • News (TV+Digital) expanded and relaunched • ETV acquisition (Regional News +Entertainment) 2012-2015 • Indiacast setup for distribution of TV bouquet Regional entry to tap vernacular market • NW18 acquired by RIL, corporatization thrust • JVs with Viacom & A+E networks, Forbes 2005-2011 • Invest in Home shopping, Online Ticketing Entry into Entertainment and Digital • News, Opinions & Info portals 1999-2005 • Business News (CNBC cluster) Built core platforms and launched • General News (IBN cluster) flagships • Finance portal (MoneyControl) 4 Network18 group : TV & Digital media, specialized E-commerce & Print ~75% held by Independent Media Trust, of which RIL is Network18 Print the sole beneficiary Digital Commerce Digital Content Broadcasting (Investments) Finance News Home shopping Entertainment Entertainment News & Ticketing Opinions Infotainment Travel Network18 holds ~51% of subsidiary TV18. NW18 owns ~44% in HS18, ~39% in TV18 in turn owns 51% in Viacom18 and Infotainment BookmyShow, and ~7% in Yatra 51% in AETN18 (see next page for details) Network18 holds ~92% in Moneycontrol. Others are in standalone entity. TV18 group – Broadcasting pure-play, across News & Entertainment ENTITY GENRE CHANNELS Standalone entity Business News (4 channels) TV18 TV18 Group General News 100% subsidiary (2 channels) 51.16% held by Panorama Network18 Regional News 50% JV with Lokmat group (14 channels) IBN Lokmat AETN18 Infotainment (2 channels) 51% subsidiary - JV with A+E Networks Entertainment VIACOM18 (inc. Movie production / distribution & OTT) 51% subsidiary - JV with Viacom Inc Regional Entertain. Distribution - (7 channels in 6 INDIACAST geographies) 50:50 JV of TV18 & Viacom18 Telugu News & Operated by the Eenadu group, owned by ETPL (Eenadu) Entertainment . Ramoji Rao (Hyderabad) 24.5% holding (associate) (5 channels) 6 FINANCIAL SUMMARY 7 Network18 and TV18 Annual Financials – A snapshot OPERATING REVENUES (Rs Cr) FY18 FY17 Growth A) Business + General News (TV18 standalone) 735 667 10% B) Regional News (ex IBN-Lokmat) + Infotainment 297 316 -6% C) Entertainment (Viacom18+Indiacast) 3,781 3,160 20% D) TV18 Consolidated 4,813 4,142 16% E) NW18 Digital and Print 213 191 12% F) Network18 Consolidated 5,027 4,333 16% OPERATING EBITDA (Rs Cr) FY18 FY17 Growth A) Business + General News (TV18 standalone) 157 122 29% B) Regional News (ex IBN-Lokmat) + Infotainment -115 -91 NM C) Entertainment (Viacom18+Indiacast) 198 139 43% D) TV18 Consolidated 240 170 41% E) NW18 Digital and Print 31 10 193% F) Network18 Consolidated 187 132 42% For a better understanding of group performance and comparability considering the corporate actions as below, the financials are being restated and represented by consolidating Viacom18 and Indiacast and excluding HomeShop18 throughout. • Network18 subsidiary TV18 took operational control and increased its stake to 51% in Viacom18 by acquiring 1% equity from JV partner Viacom Inc. Viacom18 and Indiacast became subsidiaries of TV18 from 28th February 2018 and hence the reported financials of TV18/Network18 consolidate these entities now. • HomeShop18 ceased to be a subsidiary of Network18 from 15th Feb 2018, as a result of its acquisition of ShopCJ through a share-swap. IBN Lokmat being a 50:50 JV, it is not consolidated under Ind-AS accounting. Above financials also do not include associate companies (primarily Eenadu TV for TV18; BookMyShow and HomeShop18 for Network18) where Network18/TV18 have minority stakes. 8 Investments into new initiatives in TV18 Focusing on filling whitespaces scaling up in areas of leadership over last 3 years . National News – No new channels. CNBCTV18.com launched in April 2018 (not included below) . Regional News – 8 new channels over past FY16-FY17 . Infotainment – Lifestyle channel ‘FYI’ in early-FY17 . Entertainment – OTT platform VOOT, Second Kannada GEC Color Super, Music channel MTV Beats, HD feeds for 3 regional channels (all early FY17), Tamil GEC Colors Tamil (late FY18) Regional and Digital the 2 key axes for growth via new launches New initiative losses (Rs Cr.) FY16 FY17 FY18 General entertainment - launches (inc regional & digital) 95 266 45 Regional news - launches 45 73 Factual entertainment - launches 0 27 Rebranding and re-launch 20 TOTAL : New initiative losses * 160 366 45 * We define new initiative losses as the operating losses of any major new launch or project, which we declare for a period of 4 quarters from launch at an aggregate entity level. The purpose is to allow an understanding of Business- as-usual profitability for the entity vs the prior period, as well as the trajectory of losses for the new initiative over the first year of its operations. A new initiative gets subsumed into Business-as-usual post this period, though the actual gestation period may be longer (and hence losses may continue beyond these 4 quarters). 9 TV18 group: Closing the gap with competition TV18 group is a ~Rs 5000Cr media group, with a market-cap of US$ 1.8bn TV18 is the fourth largest broadcast group in the country after Star, Zee and Sony. The group reaches 700+ mn people, across News, Entertainment and Infotainment. Portfolio viewership continues to grow. • News (#2): Share has grown to 9.5%, and continues to rise further driven by regional channels. • Entertainment (#3 ex-sports) : Share has grown to 11.3%, despite not having exposure to sports • Infotainment (#2) : Niche genre within entertainment NEWS ENTERTAINMENT (ex-Sports) 25.0% 13.0% 20.0% 11.0% 9.0% 15.0% 7.0% 10.0% 5.0% 3.0% 5.0% 1.0% 6.6% 5.3% 4.8% 5.2% 5.6% 8.0% 9.1% 9.3% 9.2% 9.5% 9.5% 9.7% 10.4% 9.6% 10.5% 11.0% 10.7% 10.7% 11.0% 11.3% 0.0% -1.0% Q3FY17 Q3FY18 Q4FY16 Q1FY17 Q2FY17 Q4FY17 Q1FY18 Q2FY18 Q4FY18 Q3FY17 Q3FY18 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q4FY17 Q1FY18 Q2FY18 Q4FY18 Q3FY16* TV18 News Zee ABP Viacom18 Sony Star Zee TV Today TV9 IndiaTV BROADCASTING - GENRE-WISE DETAILS All viewership information is based on Q4FY18 BARC data in their respective genres 11 Business News Audience : NCCS 25+ AB Male Audience : NCCS 25+ AB Male, HSM Key Demographics Significant OOH Viewers across HIG Channel for people in Business across Hindi Business People in Metros Speaking Markets Competition CNBC TV18 garnered 68% viewership – Awaaz garnered 73% viewership is at No. 1. greater than ET Now & BTVi combined. Zee Business is the other player. We created and dominate the Business News Genre Operating ~68% viewership share and over 75% market share in advertising**** Metrics Significant Out of Home Viewership (not captured by BARC) gives premium positioning Positive leverage to equity markets, Events and IPs provide resilience Launch Date Launched in 1999 Launched in 2005 CNBC - Brand Licensor* CNBC - Brand Licensor *The Brand License agreement with CNBC was renewed till March 2028. ***Source: Internal Company Estimates 12 General News Audience : NCCS AB Male 22+, All India Audience : NCCS All 15+, HSM Key Demographics English Speaking, Channel for the Masses in the Hindi HIG Heartland Market Split among the Big 5 Highly Fragmented but substantially Competition Republic TV & Times Now are leaders, larger market compared to English News CNN News18, NDTV 24x7 & India Today Aaj Tak, India TV, ABP News, Zee News - Television are the challengers Competition in Top 5 In Q4 FY18, CNN-News18 was the #4 Operating #8 rank in Q4FY17 (8.8% viewership General English News channel with Metrics share) has now risen to #5 (11.1%) 10.2% viewership share. Launched as CNN-IBN in December 2005; Acquired in 2006 from Dainik Jagran Launch Date Re-launched as CNN-News18 in April Rebranded from Channel 7 to IBN7; 2016 Rebranded again from IBN7 to News18 CNN - Brand Licensor*** India in Nov’2016 ***The Brand License agreement with CNN was renewed in December 2015 for a period of 10 years 13 National News : Viewership share – Business and General News Completely dominate the Business News genre General News seeing revival in traction, especially in Hindi ENGLISH HINDI BTVi, 7.8% Zee ET Now, Business, 24.1% 27.3% CNBC TV18, CNBC 68.1% Awaaz, 72.7% BUSINESS NEWS BUSINESS Others, 11.1% Others, 19.8% Aaj Tak, NDTV 24x7, 7.7% 15.5% Republic TV, India 30.6% News, CNN 8.2% India TV, News18, 12.5% 10.2% India Today News ABP GENERAL NEWS Television, Times Now, 25.7% Zee Nation, News, 14.7% News, 9.6% 11.4% 11.8% News18 India, 14 11.1% Regional News 14 regional channels reach ~60 crore viewers across 26 states through 13 languages The regional cluster’s share of overall TV News viewership has risen from 2.5% (Q3FY17) to 4.5% All ETV/IBN branded channels were migrated to News18 umbrella during FY18 Language Marathi Urdu Hindi Hindi Hindi Hindi Hindi/Punjabi All Urdu Punjab, Bihar MP UP Focus Markets Maharashtra Speaking Rajasthan Haryana & Jharkhand Chhattisgarh Uttarakhand Markets Himachal P. Mar 2014 Launch date 2008 Aug 2001 Jan 2002 Jan 2002 Jan 2002 Jan 2002 (* Apr 2017) 50:50 JV with ETV branded Channels acquired from Eenadu group in January 2014. * Relaunched Other details Lokmat group These mature channels typically are in the top 3 in respective markets.