September 2011

September 2011

2

Network18 : Overview

Launched Our News Business1999-2005

Network18 – India’s Fastest Growing Media Company

Building The Entertainment & Digital BusinessesEntry Into New Spaces – Films, Home Shopping

2005-2010

Leadership In The Broadcasting BusinessRiding The Digital Wave…

2011+

A US$ 600MM Media Company - 73% Revenue CAGR Over The Last 6 Years

3

Contributes 15% Of Our Revenues Currently – USD 91MM

B2B Local Search Business

Premier Special Interest Publications

Network Services

News

Network18 – Market Leading BusinessesEntertainment

Digital Content and eCommerce Allied Businesses

At USD 127MM is 21% Of Group Revenues, Our Oldest Business

Undisputed Market Leader In Both English And Hindi Business News – Credited With Creating The Business News Category In India

#1 In English News

Formidable Presence In Hindi News

42% Of Group Revenue, USD 256MM Business Built In Three years

#1 Across Genres : General Entertainment, Youth Entertainment, Kids And International Music

Firmly Entrenched In The Film Production And Distribution Business

Contributes 22% Of Our Revenues Currently – USD 133MM

India’s Oldest And No. 1 Financial Portal

No. 1 Indian Portal

India’s First 24 Hour Home Shopping Network And Undisputed Market Leader In Multi –Channel eCommerce

India’s Largest Transaction Engine For Booking Tickets Online – Movies, Plays. Sporting Events

4* Revenues above reflect Managed Revenues: Total revenues managed by the group without adjustment for ownership

0%

5%

10%

15%

20%

25%

30%

35%

Dec-08

Mar-09

Jun-09 Sep-09

Dec-09

Mar-10

Jun-10 Sep-10

Dec-10

Mar-11

Jun-110

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

TV Broadcasting

Network18 – Leadership Across Traditional And New Media

Indian Digital Media

5

Network 18

Times Group

Rediff

Zee ,HT, NDTV, Others

Monthly Unique Visitors in MM

Source: Comscore World Report –2011

StarNetwork18

SonyZee

Source: Nielsen TAM Data –2011 Market Share in HSM - Genres Where We Operate

NDTVTimes

UTVOthers

20

143189

256

23 3364

98

107

111

127

2

8

24

36

84

133

32

62

92

90

123 35

73

174

348

477

606

0

40

80

120

160

200

240

280

320

360

400

440

480

520

560

600

640

2005 2006 2007 2008 2009 2010 2011

Entertainment News Digital Content and eCommerce Allied Businesses

CAGR – 73

%

6

Network 18: Rapid Growth In Managed Revenues

* Managed Revenues: Total revenues managed by the group without adjustment for ownership

USD Million

7

Network 18: Successful Partnerships With Global Giants

English News

Business News50:50 JV - Entertainment

Magazine Publication

World's Leaders In News And Information Delivery

Recognized World Leader In Business News

Leading Global Entertainment Content Company

World’s Leading Business Magazine

Factual Entertainment Home Shopping

Leaders In Factual Entertainment

World’s Leading Home Shopping Network

8

Network18 : Optimized StructurePromoters

58.01%

Network18 (Listed)

Digital Content

E18, Sport18, Capital18, Setpro18

Newswire18

BookmyShow

70%

TV18 (Listed)

59.07%

Viacom18

IBN Lokmat

50%

60%

Sun18 Media Services North

50%

100%

8

AETN1851%

eCommerce

Allied Businesses

Web18

Homeshop1851%

Infomedia18 48%

9

TV18: Leader In News And Entertainment

TV18

Business News

General News

Entertainment

Factual Entertainment

10

27

(40)

75

(60) (40) (20) - 20 40 60 80 100

TV Today

Zee News

NDTV

TV18 (News)

293

243

348

558

- 100 200 300 400 500 600

TV Today

Zee News

NDTV

TV18 (News)

TV18 – India’s Largest News Network…

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…And So Are Our Operating Profits

Dominant Market Share in Business News CNN IBN is a Market Leader in General English News

Our Revenues Are The Largest…

All figures in INR Crores – FY11

CNBC Universe60%

Zee Business19%

NDTV Profit9%

Bloomberg UTV5%

ET Now8%

Source: TAM, Market Share, TG: CS AB Male 25+, Market: All IndiaTime Period: 1st Apr’10– 31st Mar’11, All Days 0600-2400 hrs Source: TAM, Market Share, Market: All India – CS AB 15+

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%CNN IBN NDTV 24x7 Times Now Headlines Today

11

TV18: News Financial Summary

Note: Segmental Nos. are on a pro forma basis.

FY12 FY11 FY11 FY10 Growth%

Revenues 130 118 558 489 14%General News 61 54 252 216 17%

Business News 68 64 306 273 12%Expenses 113 111 483 458 5%

General News 61 63 264 235 12%Business News 52 48 219 223 -2%

Operating Profit 16 8 75 31 142%General News - (9) (12) (19)

Business News 16 16 87 50 74%

Operating Margin 12% 6% 13% 6%General News - -16% -5% -9%

Business News 24% 25% 28% 18%

Full YearQ1 (April - June)All figs in INR Crores

TV18 – Profitable And Market Leading Entertainment Franchise…

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…And is on a Profitable Growth Trajectory

Colors leads in Prime Time Market Share… …And Attracts the Largest Numbers of Eyeballs

Viacom18 Has A Strong Portfolio Across Genres…

Hindi General Entertainment

Youth Entertainment

International Musicand Lifestyle

KidsEntertainment

Source: TAM; Hindi Speaking Markets; TG: CS 4+; FY2011: Prime Time Share 2000-2359 hrs, All Days

All Values in INR Crores

Star Plus24.1%

Colors24.1%

Zee TV22.5%

Sony Entertainment 15%

SAB8.8%

Imagine TV6.5%

Star One2.6%

Sahara One1.5%

Colors Star Plus

Sony Zee TV Imagine TV

SAB Star One

Sahara One

0

10

20

30

40

50

60

70

80

9082.1 82.0

77.475.1

58.155.4

43.138.4

Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12

266

221238

272

323

271 276

9 17 27 2350

21 18

Revenues Operating Profit

TV18 – Colors : India’s General Entertainment Channel of Choice

13

Holistic Programming Strategy Across Reality, Movies and Fiction

Successful Reality Shows… World Premiere on Colors was the most successful ever

Fiction Shows Continue to be Prime Time Slot Leaders

14

TV18: Financial Summary

* Q1 Nos. are Reviewed – Segmental Nos. are on a proforma basis

FY12 FY11 FY11 FY10 Growth%

Revenues 266 237 1,110 906 23%News 130 118 558 489 14%

Entertainment 136 119 552 417 32%Expenses 241 217 975 891 9%

News 114 111 483 458 5%Entertainment 127 106 492 433 14%

Operating Profit 25 21 135 15 800%News 16 8 75 31 142%

Entertainment 9 13 60 (16)

Operating Margin 9% 9% 12% 2%News 12% 6% 13% 6%

Entertainment 7% 11% 11% -4%

All figs in INR CroresQ1 (April - June) Full Year

TV18: Growth So Far Driven By Advertising Revenues …

15

Zee Star Sony Network 18

5562 64

89

4538 36

11

Advertising Subscription

Zee (29 channels)

Network 18 (9 channels)

Adv

ertis

ing

Rev

enue

s a

s %

of T

otal

Rev

enue

s

US$ MM

Our Advertising Revenues Reflect Market Share… …But, Subscription Revenues Lag Peers

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

0

20

40

60

80

100

120

New TV18: Now Structurally Aligned To Drive Subscription Revenues

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News Channels part of this bouquet

Entertainment Channels part of this bouquet

Channel Split Across Two Bouquets : Colors Free To Air At Launch

Lack Of Control Led To Opaque Pricing And Low Realization

India’s Highest GRP Delivering Bouquet With 33 Channels : Network 18, Sun TV And Disney

Vertical Integration Into Distribution Will Translate To Transparent Pricing And Higher Realization

Earlier Current

TV18 : Will Benefit From The Substantial Growth In Subscription Market Ahead

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1 2 511

18

32

CY05 CY06 CY07 CY08 CY09 CY10 CY11E CY12E CY13E

45

64

67

DTH

Sub

s in

Mill

ions 6 players with deep

pockets

Actual Subs

Projected Subs

Our estimates

Broadcasters Local Cable Operators MSOs and Pay TV

$0.5B

$3.3B

$0.4B

$2.5B

$3.4B

$2.4B

2009 - US$4B Industry 2015E - US$8B Industry

5 tim

es

Digitization Will Be A Key Driver Of TV18 Profitability In The Near To Medium Term

Pay TV (DTH/Digital Cable) Is Growing Rapidly In India… …And Will Double Over The Next Five Years To $8BShare Of Broadcasters And Pay TV Will Grow Faster

18

Network18

Digital Contentand

eCommerce

Allied Businesses

Network18: An Integrated Media Company

TV18

59%

18

Entertainment

News

Digital Media: The Next Growth Driver In India

19

India Is A Significant Digital Market Already… …And Will Be Reminiscent Of The Telecom S-Curve

Source :Morgan Stanley Presentation Source :Industry Estimates

National Telecom Policy – 99 announced

Policy for additional licenses and TDSAT

Affordable handsets and lifetime free prepaid 3G Services

launched on large scale

20

Network18 :Building Strong Digital Assets For The Future

Network18Integrated Digital Proposition

Content Commerce Local*

Largest Indian Content Portals

Largest Indian Professional Financial Information Solution

Largest Indian Home Shopping Business

Largest Indian Ticketing Portal

Largest Print Directory Search Business being synergised with an online proposition

* Reported as part of our Allied Businesses Segment

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Network18 : Financial Summary

Note: Segmental numbers are on a proforma basis.

All figures in INR crores Q1 FY12 Q1 FY11 FY11

Revenues 363 318 1,484 News 130 118 558

Entertainment 136 119 552 Digital Content and eCommerce 52 42 195

Allied Businesses 71 67 297 Less: Inter Segmental Revenues (25) (28) (119)

Operating Profit (15) 1 48 News 16 8 75

Entertainment 9 13 60 Digital Content and eCommerce (25) (10) (51)

Allied Businesses (16) (9) (36) Operating Margin

News 12% 6% 13%Entertainment 7% 11% 11%

Digital Content and eCommerce -48% -24% -26%Allied Businesses -22% -14% -12%

22

Network18 : Key Financials At A Glance

All figs in INR Crores Q1 FY12 Q1 FY11 FY11Operating Revenue 363 318 1,484 Operating Expenses 379 317 1,429

Operating Profit (EBITDA) (15) 1 48 Operating Margin (%) -4% 0% 3%

Depreciation 14 16 62 ESOP Expenses and Exceptional Items 4 6 17 Interest 65 57 226 Other Income 30 27 202

Profit Before Tax (68) (51) (55)

Provision for tax 3 5 33

Net Profit After Tax (71) (56) (88)

Minority Interest (5) (20) (51)

Net Profit After Tax and Minority Interest (66) (36) (37)

Network18 Group: Net Debt Position Table

23

All figs in INR crores

Gross Debt Cash & Equivalents Net Debt

Jun-11 Mar-11 Mar-10 Jun-11 Mar-11 Mar-10 Jun-11 Mar-11 Mar-10

Network18 2,091 1,773 2,111 828 773 1,251 1,263 1,001 860

TV18 846 551 472 175 220 257 671 330 215

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Network18 and TV18 – Summarizing Value

Amount in INR Crores TV18 Network 18

Financial Performance FY11** FY11

Revenues 1,110 1,484

EBITDA 135 48

Financial Performance Q1 FY12

Revenues 266 363

EBITDA 25 (15)

Market Data

Market Cap * 1,470 1,355

Net Debt 671 1,263

EV 2,141 2,618

No. of Shares (in MM) 362.12 142.65

Share Price (INR) * 40.60 95.00

Note: *As on 5th September, 2011** FY11 for TV18 is on a pro forma basis

25

Summary – The Network 18 Opportunity

India’s Fastest Growing Media Company With Leadership In Television And Digital

Optimized Structure And Focused Business Model

Focused On Value Creation For All Stake Holders After A Strong Investment Phase

26

Disclaimer

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Network18 Media & Investments Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis of or be relied upon in connection with any contract or binding commitment whatsoever. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner. The information contained in this presentation is subject to change without notice and past performance is not indicative of future results.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty or undertaking, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness, correctness and reasonableness of the contents of this Presentation. This presentation has not been approved and will not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India and may not comply with all the disclosure requirements prescribed thereof. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to: the performance of the Indian economy and of the economies of various international markets, the performance of the media industry in India, competition, the company’s ability to successfully implement its strategy, risks associated with acquisitions of, and investments in, other entities, the Company’s future levels of growth and expansion, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements, projections and industry data made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

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