IDFC SSKI Emerging Stars Conference 2009 …...7 • As per Group M, overall ad industry to grow at ~9% in 2009 • TV, radio, and internet to outperform overall industry • Low cost

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IDFC SSKI Emerging Stars Conference 2009

February 5, 2009

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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.

Disclaimer

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Presentation Path

• Times Group

• Indian Media Industry

• ENIL Overview

• Financial Highlights

• Strategic Direction

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Times Group

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Corporate Structure

Times Infotainment

Media Limited

Times Internet Limited

Entertainment Network (India)

Limited

Publishing Division� The Times of India

� The Economic Times

� Navbharat Times

� Maharashtra Times� Sandhya Times

� Vijay Times

ABSL

360Degrees

� Radio Mirchi

� indiatimes.com

� 58888

� Times of Money

Entertainment & Retail

� Timesjobs.com

� SimplyMarry.com

� Magicbricks.comTIM

Times OOH

Mirchi Movies Ltd.

Times Business Solutions Ltd.

Bennett Coleman & Co. Limited

TIML Global Ltd.

Times Global Broadcasting

� News Channel –

Times Now

� Business News

– ET Now

World Wide Media

(JV with BBC)

� Femina� Filmfare

� Top Gear

� Grazia

� Others

Zoom Entertainment

Network

� Ent. Channel – Zoom

Private Treaties

�Times Music

�Mopix Animation

�Times Wellness�Times Multimedia

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Indian Media Industry

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• 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

Ad Revenues Forecast for 2009

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Media &

Entertainment

Industry

Regulatory reforms (PPP) &

Foreign Investment

GDP Growth rate of 6% - 7%, Ad

spend growth – 9%

Low Media

Penetration –

Untapped rural

markets

Young nation with

Higher spending

power

Largest workforce in

the world

India Media Industry - Growth Drivers

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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”

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Times Innovative Media Limited (TIM)

Alternate Brand Solutions Limited (ABSL)

Subsidiaries:

Radio Broadcasting brand Radio Mirchi

Out-of-home Media brand Times OOH

Experiential Marketing brand 3600 Experience

Businesses:

– ENIL

– TIM

– ABSL

8.5%EBITDA Margin:

Rs. 354.9 mnFY08 Consolidated EBITDA:

Rs. 4,168.4 mn, including other income of Rs. 33.7

mn

FY08 Consolidated Total

Income:

February 15, 2006Listed:

1999Incorporated:

Mumbai, IndiaHeadquarters:

Company Snapshot

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ENIL: Building an ‘emerging media’ network

• Comprehensive emerging media

offering

– Network of emerging media (radio,

OOH & event management)

• Radio: India’s leading private FM

radio network - with 32 stations

under the Radio Mirchi brand

• OOH: Largest organized OOH

player in India with a formidable

portfolio of contracts including the

Delhi & Mumbai international

airports

• Event Management: Executing big-

ticket events; developing own events

– Ford Super Models, Smart Living

Awards, Miss Teen Diva & Mr. India

(World)

Company Business Brand

64.2%

100%

BCCL

TIML

ENIL

Events and Promotion

� Life Style & Entertainment

� Conferences

� Corporate Events

Out Of Home Media

� Airports

� Street Furniture

� Billboards

Radio: India’s largest

Pvt FM network

� Broadcasting

� Activations

TIM

7%

Flagship company of

“The Times of India” group

83.45%

Company Structure

ABSL

100%

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Mirchi – Presence across Key Indian Cities

PatnaJaipur

ThiruvananthapuramNagpurJabalpur

VishakhapatnamNashikIndore

Ahmedabad Jallandhar Pune

Aurangabad Kanpur Panjim

Bangalore Kolhapur Raipur

Bhopal Kolkata Rajkot

Chennai Lucknow Surat

Coimbatore Madurai Vadodara

Delhi Mangalore Varanasi

Hyderabad Mumbai Vijayawada

Market Leader in Indian Private FM Radio Industry

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• 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

Innovative Content & Experience in managing diverse

markets

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• 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

Strong Brand

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FM Radio - Evolution

• No privatisation

• Government Run radio

Channel

Radio a “dead

industry”

Before 1999

1999-2005

• Phase – I Licensing

• Limited Private

Participation

• Strict Regulatory

norms

• Introduction of revenue

sharing in 2005

Radio in infancy

2006- 07

• Completion of Phase –

II Licensing

• Increased Competition

• Improving profitability

• Growth in radio ad

spend

Radio in growth phase

2008

• Multiple Frequency

• License Tradability

• Networking

• Radio ad spend share

- 8.5%

• Technology

developments

• Internet Radio

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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

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• 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

Key Operating Highlights - Q3FY09 Radio Business

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Times OOH: Creating a Pan India presence

• On high growth trajectory

– Largest organized player

– Formidable portfolio of OOH assets in 8

cities

• Mix of long and medium term lease on

tendered properties

• Includes key assets in high traffic/footfall

areas

• Revenues poised to grow

– Infusion of capital by PE funds

• Goldman Sachs & Lehman Brothers

invested Rs. 2bn for a 16.56% (8.28%

each) stake

– Focus on Innovation & Technology

• Customized solutions through new

technologies - video walls and remote-

access hoardings

� 28 UnipolesJaipur

� 8 bus queue sheltersChandigarh

ContractsCity

� 281 + 132 (EMR) bus queue sheltersBangalore

� 200 bus queue shelters + EMR for flyoverHyderabad

� 8 Billboards

� 66 Billboards

� Delhi International Airport Ltd (DIAL)� Delhi-Noida-Delhi Flyway� Delhi Metro Rail

� Mumbai International Airport Ltd (MIAL)� 1,400 bus queue shelters� Patel Bridge

Pune

Kolkata

Delhi

Mumbai

Expanding across India

Presence in all segments

Revenue Margin Capex

HighModerate Moderate

ModerateHigh High

Moderate ModerateModerate

ModerateHigh High

TransitAirports, metros,

bus-backs, taxis

Street

Furniture

Bus queue shelters, kiosks

BillboardsStatic, digital, mobile

Alternative Others

Revenue Margin Capex

HighModerate Moderate

ModerateHigh High

Moderate ModerateModerate

ModerateHigh High

TransitAirports, metros,

bus-backs, taxis

Street

Furniture

Bus queue shelters, kiosks

BillboardsStatic, digital, mobile

Alternative Others

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Milestones

2002

2005

2006

Foray in OOH business with

Mumbai BQS contract

2007

TIM is incorporated and

business is transferred

from TIML

• Introduced LEDs in India

• Won Patel Bridge, Dwarka

Metro, DND Flyover &

Kolkata Billboards

• Won Delhi and Mumbai

Aiports

• Won Pune Billboards

• Two long tenure contract

renewals

2008

• Investment by Goldman

Sachs and Lehman

Brothers

• Won contract in four

new cities i.e.

Bangalore, Hyderabad,

Jaipur & Chandigarh

• EMR in Delhi,

Bangalore and

Hyderabad

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Alternate Brand Solutions Ltd.

Property Ownership

Driving Sustainability

Creative Solutions

Innovation in execution

“Preferred Corporate Partner”

“Business of Ideas”

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• Focus on owned properties

– Ford Super Models 2008, India

– Teen Tiva Beauty Pageant

– Smart Living Awards

– Mr. India World pageant

• Managing large format events

– Filmfare Awards

– Miss India Pageant

– IFFI Goa’08

– Pravasi Bharatiya Diwas’06

• Key strengths

– National presence (8 branches)

– Experienced team of professionals

– Large bouquet of in-house events

• Geared for aggressive growth

360° Experience: Eventful Consumer Engagements

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• Times Innovative Media Limited (“TIM”) entered into trading contracts with clients and carried sales promotions at Airport

• Gross additions to customers base– Airports : 36

– Traditional : 92

• New revenue streams on track: Retail, Trading, Political Parties

• Experienced cancellation of deals due to economic slowdown

• 360Degrees launched a new IPR owned event – Ford Super Models 2008

Key Operating Highlights – Q3 FY09

TIM and ABSL

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Financial Highlights

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Condensed Statement Of OperationsStandalone

(Rs. Million) Q3FY09

%age of

Total Income Q3FY08

%age of

Total Income Growth (%)

Income from Operations 597.4 99.6% 676.0 99.7% (11.6%)

Other Operating Income 2.2 0.4% 2.0 0.3% 13.8%

Total Income 599.7 100.0% 677.9 100.0% (11.5%)

Operating Expenditure 416.2 69.4% 487.4 71.9% (14.6%)

EBITDA 183.4 30.6% 190.5 28.1% (3.7%)

Depreciation 44.1 7.4% 42.9 6.3% 2.9%

Amortisation 56.7 9.4% 50.2 7.4% 12.8%

Interest 28.9 4.8% 20.1 3.0% 43.5%

Other Income 0.3 0.1% 1.7 0.3% (81.9%)

Profit Before Tax (PBT) 54.1 9.0% 79.0 11.7% (31.5%)

Less: Taxation 5.5 0.9% (1.5) (0.2%) NM

Profit After Tax (PAT) 48.6 8.1% 80.5 11.9% (39.6%)

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Condensed Statement Of OperationsStandalone

(Rs. Million)

YTD Dec.31,

2008

%age of

Total Income

YTD Dec.31,

2007

%age of

Total Income Growth (%)

Income from Operations 1,780.7 99.6% 1,620.4 99.8% 9.9%

Other Operating Income 6.6 0.4% 2.7 0.2% 141.6%

Total Income 1,787.3 100.0% 1,623.2 100.0% 10.1%

Operating Expenditure 1,414.9 79.2% 1,283.9 79.1% 10.2%

EBITDA 372.4 20.8% 339.2 20.9% 9.8%

Depreciation 132.5 7.4% 90.8 5.6% 45.8%

Amortisation 168.6 9.4% 127.2 7.8% 32.6%

Interest 78.2 4.4% 33.7 2.1% 132.0%

Other Income 11.2 0.6% 1.8 0.1% 520.7%

Profit Before Tax (PBT) 4.3 0.2% 89.3 5.5% (95.2%)

Less: Taxation (12.2) (0.7%) (1.8) (0.1%) NM

Profit After Tax (PAT) 16.5 0.9% 91.1 5.6% (81.8%)

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Q3 FY09 Performance Review(All comparisons with Q3 FY08)

• On a like-to-like basis (10 legacy stations):

- Total Income reported Rs. 445.6 million, down 15.7%

- EBITDA down 9.1% to Rs 168.6 million

- EBITDA margin stood at 37.9% vis-à-vis 35.1%

• 22 new stations’ revenues grew by 3.3%

– New stations reported EBITDA margin of 9.6%

• Depreciation and amortization higher on account of operationalization of new stations and period effect

• Company maintained profitability through cost rationalization

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Condensed Statement Of OperationsConsolidated

(Rs. Million) Q3FY09

%age of

Total Income Q3FY08

%age of

Total Income Growth (%)

Income from Operations 1,101.2 99.8% 1,348.0 99.9% (18.3%)

Other Operating Income 2.2 0.2% 2.0 0.1% 13.8%

Total Income 1,103.5 100.0% 1,350.0 100.0% (18.3%)

Operating Expenditure 1,044.5 94.7% 1,143.2 84.7% (8.6%)

EBITDA 59.0 5.3% 206.7 15.3% (71.5%)

Depreciation 76.9 7.0% 54.7 4.0% 40.7%

Amortisation 56.7 5.1% 50.2 3.7% 12.8%

Interest 48.9 4.4% 59.2 4.4% (17.5%)

Other Income 0.5 0.0% 2.8 0.2% (83.0%)

Profit Before Tax (PBT) (123.0) (11.1%) 45.4 3.4% NM

Less: Taxation 14.5 1.3% 3.6 0.3% NM

Profit After Tax (PAT) (137.5) (12.5%) 41.8 3.1% NM

Minority Interest (30.7) (2.8%) - -

Net Profit after Minority Interest (106.8) (9.7%) 41.8 3.1% NM

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Condensed Statement Of OperationsConsolidated

(Rs. Million)

YTD Dec.31,

2008

%age of

Total Income

YTD Dec.31,

2007

%age of

Total Income Growth (%)

Income from Operations 3,266.7 99.8% 2,901.6 99.9% 12.6%

Other Operating Income 6.6 0.2% 2.7 0.1% 141.6%

Total Income 3,273.3 100.0% 2,904.3 100.0% 12.7%

Operating Expenditure 3,243.7 99.1% 2,764.3 95.2% 17.3%

EBITDA 29.6 0.9% 140.0 4.8% (78.9%)

Depreciation 224.4 6.9% 113.1 3.9% 98.4%

Amortisation 168.6 5.2% 127.2 4.4% 32.6%

Interest 109.0 3.3% 115.4 4.0% (5.5%)

Other Income 16.7 0.5% 2.9 0.1% 482.9%

Profit Before Tax (PBT) (455.7) (13.9%) (212.8) (7.3%) 114.1%

Less: Taxation (17.3) (0.5%) (6.0) (0.2%) NM

Profit After Tax (PAT) (438.5) (13.4%) (206.8) (7.1%) 112.0%

Minority Interest (69.6) (2.1%) - -

Net Profit after Minority Interest (368.9) (11.3%) (206.8) (7.1%) 78.3%

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Consolidated Financial PerformanceQ3FY09

Rs. Million ENIL TIM ABSL

Inter Co.

Adjustments Consolidated

Income from Operations 597.4 398.2 128.8 (23.3) 1,101.2

Other Operating Income 2.2 - 0.0 - 2.2

Total Income 599.7 398.2 128.8 (23.3) 1,103.5

Expenditure

Production Expenses 52.7 17.8 90.7 (2.7) 158.5

License Fees 31.6 415.3 - - 446.9

Other Operating Expenses 331.9 91.4 36.4 (20.6) 439.2

Total Cost 416.2 524.5 127.1 (23.3) 1,044.5

EBITDA 183.5 (126.3) 1.8 59.0

Margin (%) 30.6% (31.7%) 1.4% 4.0%

Interest (Net) 28.9 20.2 (0.2) - 48.9

Depreciation & Amortisation 100.8 32.0 1.3 (0.5) 133.6

Other Non-Operating Income 0.3 0.1 0.0 - 0.5

Profit / (Loss) Before Taxation 54.1 (178.4) 0.8 0.5 (123.0)

Taxation 5.5 7.1 1.8 - 14.5

Profit / (Loss) Before Minority Interest 48.6 (185.5) (1.1) 0.5 (137.5)

Minority Interest (30.7) (30.7)

Profit / (Loss) after Minority Interest 48.6 (154.8) (1.1) 0.5 (106.8)

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• Times OOH revenues down by 5.0%

– Profitability under pressure due to DIAL and start-up phase of new

projects

– We surrendered two loss making contacts in New Delhi

• Lower revenues in event management business due to the absence of high

ticket social events

Q3FY09 Performance OverviewConsolidated (All comparisons with Q3 FY08)

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Strategic Direction

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Strategic Direction

� Expand our footprint in radio broadcasting

– Margin growth in existing stations

– Horizontal Expansion - Additional licenses in new cities under Phase III

� Maintain market leadership in fast growing radio industry

� Focus on Out-of-Home media growth

– Establish footprint in top 25 cities in India

– Consolidate properties in existing eight cities

– Explore exclusive marketing arrangement with OOH assets owners

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Strategic Direction (Cont’d)

� Establish long-term client relationships for Experiential Marketing

- Focus on multi-year contracts to drive revenue growth & margin

expansion

� Focus on “owned” rather than “managed” events.

� Target areas where scale can be leveraged

– Focus on big-ticket / higher margin segments

– Identified segments like fashion & lifestyle, brand promotions and

conferences

– Play on firm strengths and operate in large scale/complex projects

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THANK YOU