TRUSTED VOICE OF EVOLVING INDIA ANNUAL REPORT 2019-20 CORPORATE OVERVIEW Board of Directors Statutory Auditor Registrar and Share Transfer Agent Smt. Shobhana Bhartia B S R and Associates Chairperson & Editorial Director Chartered Accountants KFin Technologies Private Limited Selenium Tower-B Shri Ajay Relan Registered office Plot Nos. 31 - 32, Financial District Smt. Rashmi Verma* Nanakramguda, Serilingampally Hindustan Times House Shri Vikram Singh Mehta Hyderabad - 500 032 18-20, Kasturba Gandhi Marg Tel: +91-40-67162222 Shri Vivek Mehra New Delhi - 110 001, India Fax: +91-40-23001153 Shri Priyavrat Bhartia Tel: +91 11 6656 1608 Toll Free No.: 1800-345-4001 Shri Shamit Bhartia Fax: +91 11 6656 1445 Email: [email protected] Email: [email protected] Website: www.kfintech.com Shri Praveen Someshwar Website: www.htmedia.in Managing Director & Chief Executive Officer * Appointed w.e.f. July 28, 2020 Group Chief Financial Officer Shri Piyush Gupta Group General Counsel & Company Secretary Cautionary statements Shri Dinesh Mittal Certain statements in the MDA section concerning future prospects may be forward-looking statements which involve a number of underlying identified / non identified risks and uncertainties that could cause actual results to differ materially. In addition to the changes in the macro-environment, the Covid-19 pandemic may pose unforeseen, INSIDE THE REPORT unprecedented, unascertainable and constantly evolving risk(s), inter-alia, to the Company and the environment in which it operates. The results of these assumptions, relying on available internal and external information, constitute the 01-16 17-77 basis for determining certain facts and About HT Media Statutory Reports figures stated in the report. Since the factors underlying these assumptions are HT Group – An Overview / 02 Management Discussion subject to change over time, the estimates on which they are based, are also subject and Analysis / 17 Our Business Model – to change accordingly. These forward- Creating Value For All / 04 Board's Report / 25 looking statements represent only the Company’s current intentions, beliefs or Chairperson’s Message / 06 Report on Corporate Governance / 62 expectations, and any forward-looking statement speaks only as of the date on Letter from MD & CEO / 08 which it was made. The Company assumes no obligation to revise or update any Company – People, Culture and Social forward-looking statements, whether as a result of new information, future events, Responsibility / 10 or otherwise. 78-308 Disclaimer: All data used in the initial Financial Statements sections of the report (including MD&A) are primarily based on publicly available Standalone Financials / 78 sources, and discrepancies, if any, are incidental and unintentional. Consolidated Financials / 186 With a rich legacy spanning 96 years, HT Group has grown today to become one of India’s largest media conglomerates. It brings across to the audience the most authentic and relevant news, through its print publications Hindustan Times, Hindustan and Mint, unmatched entertainment in over 15 cities via its radio channels, a leading jobs portal and robust advertising platforms. The leading print brands of HT Group have amassed over 5.8 crore readers across India. Similarly, the Radio Broadcasts are tuned in by more than 3.1 crore listeners. HT Media also has a highly engaged community across all social media platforms. The media landscape has undergone immense transformation in the past decade and despite the testing times, HT Media, backed by its ethos of clarity and credibility has continued to make strides as the - Trusted Voice of an Evolving India, especially in today’s information-addled world. Source: Print- IRS Q4 2019 (Total Readership) (TR) ; Radio- RAM for the week ending March 14 2020 HT GROUP – AN OVERVIEW HT Group is today one of India’s leading conglomerates operating in the Media & Entertainment industry. It is a prominent media house with presence in English, Hindi and Business newspaper categories, through its prestigious brands like Hindustan Times, Hindustan and Mint. It operates FM radio stations COURAGE under the brands Fever, Radio Nasha and Radio One. It also has a distinguished presence in the 01 recruitment market through the job portal, Shine.com. As a responsible PEOPLE RESPONSIBILITY organization, it is committed in the CENTRIC 05 02 resolve to bring about a positive Our Values change in the lives of readers, listeners and job seekers. HT Media has also forayed into the podcast market with the launch of 04 03 HT Smartcast which is a one-stop audio destination for sports, markets, fashion and news. CONTINUOUS SELF RENEWAL EMPOWERMENT Key Brands 02 HT MEDIA LIMITED Annual Report 2019-20 01-16 17-77 78-308 About HT Media Statutory Reports Financial Statements HT GROUP – AN OVERVIEW Print Hindustan Times #2 #1 #1 #2 English newspaper in India In Delhi-NCR for 19th time In Punjab (including In Mumbai in a row Chandigarh) Hindustan #1 #1 #1 #2 In Bihar In Uttarakhand In Bihar and Jharkhand In Jharkhand, Delhi combined Mint #2 Business daily in India Note: Rankings for print publications are based on Average Issue Readership (AIR) as per IRS Q4 2019, unless otherwise stated Radio Digital Fever FM Radio Nasha Shine.com #1 #1 #2 36 million In listenership in Delhi, Retro station in Delhi Job portal in India Strength of job-seekers’ Mumbai & Bengaluru database (non-Kannada) Note: Radio rankings are based on RAM share % for Q4 FY2019-20 (till March 14, 2020) Trusted Voice of Evolving India 03 OUR BUSINESS MODEL – CREATING VALUE FOR ALL We deliver incisive Our value philosophy and credible news to our readers through our print publications, music and entertainment Courage To encourage the ability that meets through our radio opposition with skill, competence channels & podcast and fortitude content, and recruitment solutions Responsibility Be accountable for results in line that cater to an with the company’s objectives, ever- growing market strategies and values of aspirational job- seekers. Empowerment Support our people and give them As an organisation, the freedom to perform, to provide we always strive our readers with information that to give more to influence their environment our consumers and partners. Continuous Self Determination to constantly Renewal re-examine and re-invent ourselves for further innovation and creativity People Centric People are our greatest asset. We invest in them and know that the rest will follow 04 HT MEDIA LIMITED Annual Report 2019-20 01-16 17-77 78-308 About HT Media Statutory Reports Financial Statements OUR BUSINESS MODEL – CREATING VALUE FOR ALL Our revenue generation Our stakeholders framework Advertising Customers Offers new and customized solutions beyond regular Delivering genuine, high value and quality content to advertising which is also amplified through user our audience, along with innovative solutions to our engagement advertisers Circulation Investors Revenue is primarily generated from the sale of Long term value creation for shareholders our English and Hindi dailies, which continue to command leading positions in key markets Communities Sharing value created to stimulate growth and Job Portal development in host communities by investing in socio-economic projects and promoting preferential Provides end-to-end recruitment solutions by local procurement accurately matching candidate profiles to relevant job openings Employees Providing employment and the opportunity to earn a living, to develop skills and learn in a safe working environment Trusted Voice of Evolving India 05 CHAIRPERSON’S MESSAGE Dear Shareholders, We are happy to share with you our Annual Report for FY 2019-20. HT Media Group has always been about empowering and enriching people by providing them credible, accurate, independent and timely news and information. This means our responsibilities become all the more important during times of crisis, such as the one that we are witnessing now with the outbreak of the COVID-19 pandemic in India, and across the world. I want to assure you that in these testing times, we remain as committed, if not even more, to our mission. Looking back at the year, HT Media held its own despite softening economic growth in the country. Growth was hit by both global and local factors, and both cyclical and structural reasons. As a result, both investment and consumption suffered. According to the government, India’s GDP is estimated to have grown 4.2% in FY 2019-20, compared to 6.1% the previous fiscal. The Media & Entertainment industry was impacted by the economic slowdown, with advertisers exercising prudence when it came to advertising budgets. The outbreak of the COVID-19 pandemic further intensified the challenges faced by the economy during the last quarter for FY 2019-20. Overall revenues declined for the group in FY 2019-20 given the subdued advertising environment. Throughout the year, we adapted 06 HT MEDIA LIMITED Annual Report 2019-20 01-16 17-77 78-308 About HT Media Statutory Reports Financial Statements CHAIRPERSON’S MESSAGE our plans and focused on factors within be among the top newspapers in their (non-Kannada), while, Radio Nasha our control to offset the decline in key markets, collectively reaching 5.63 continues to be the No. 1 retro station advertising revenue. Hence, despite crore readers in India on the basis of in Delhi. the pressure on revenue, earnings Total Readership (TR), as per the IRS grew sharply. The strength of our Q4 2019 survey. All our publications The secret to our success lies in the balance sheet and our comfortable continue to offer a compelling hard work and dedication of each and liquidity position held us in good stead proposition for advertisers owing to our every member of the HT Media family. in these unprecedented times enabling extensive reach and a large reader base. I am proud of our passionate team us to maintain smooth functioning of that is always ready to learn new skills operations.