ficci - kpmg media presentation - key takeaways - 7 apr 2010

Media – Event Update

M&E Industry set for a bounceM&E Industry set for a bounce--back!back!

Anand ShahPhone: 022-40403800 Extn: 334Email: [email protected]

Chitrangda KapurPhone: 022-40403800 Extn: 323Email: [email protected]

April 6, 2010

M&E Industry grows a muted 1.5% in CY2009

M&E Industry faced a tough CY2009 owing to the economic slowdown and shrinking corporate budgetsThe year was marked by innovations and focus on cost efficiencies across M&E segmentsDuring CY2009, the Indian M&E Industry stood at Rs587bn, registering a muted1.5% yoy growthAs GDP growth recovers, the M&E Industry is set to stage a recovery and register 11.1% yoy growth in CY2010

Indian M&E Industry expected to post a CAGR of 13.3% over CY2009-14E to reach size of Rs1,094bn

14 8

16.9

16 0

18.0 1,200

14.8

12.0 11.1

13.7 12.7

13.7 15.1

10.0

12.0

14.0

16.0

600

800

1,000

442 516 578 587 652

742 836

950 1,094

2.0

4.0

6.0

8.0

200

400

Source: FICCI – KPMG Media Report 2010, Angel Securities

1.5 --

CY2006 CY2007 CY2008 CY2009 CY2010 CY2011 CY2012 CY2013 CY2014

Size (Rsbn), LHS YoY Growth (%), RHS

1

p , g

Television stood tall, Films the worst hit

TV and Print are the largest sectors of the industry contributing to greater than 70% of the revenuesAmidst weak macro conditions, the TV industry showed a good growth rate of 6.9% yoy to Rs257bn in CY2009Print showed a flat trend registering a muted 1.7% yoy growth to Rs175bn for the yearSectors like Films, Radio and Out-of-Home (OOH) registered negative growth during the yearInternet and Gaming and Animation registered double-digit growth on a smaller base

Television along with New Media segments to outpace overall M&E growth during CY2009-14

(Rs bn) CY06 CY07 CY08 CY09 #CY06-09 CY10 CY11 CY12 CY13 CY14 #CY09-14T l i i 183 211 241 257 12 1 289 337 382 448 521 15 2 Television 183 211 241 257 12.1 289 337 382 448 521 15.2 Filmed Entertainment 78 93 104 89 4.5 96 105 115 125 137 9.0 Music 8 7 7 8 0.8 9 10 12 14 17 16.3 Print Media 139 160 172 175 8.1 190 206 225 240 269 9.0 Radio 6 7 8 8 10.1 9 10 12 14 18 17.6 OOH d i i 12 14 16 14 6 2 15 17 19 21 24 11 4 OOH advertising 12 14 16 14 6.2 15 17 19 21 24 11.4 Internet advertising 2 4 6 8 58.7 11 15 18 23 29 29.4 Animation 12 15 17 20 18.6 23 28 33 39 47 18.6 Gaming 3 4 7 8 38.7 10 14 20 26 32 32.0 Total M&E Ind Size 442 516 578 587 10.0 652 742 836 950 1,094 13.3

Source: FICCI – KPMG Media Report 2010, Angel Securities, #Note: Denotes CAGR for the period,OOH = Out of Home

2

Advertising stays flat at Rs220bn

Advertising constituted 38% of the M&E Industry revenues in CY2009 to Rs220bnAmidst the uncertain economic environment and lacklustre industry sentiment that prevailed in 2009, the IndianAdvertising industry managed to sustain its media spend levels of CY2008With the market picking up in the second half of 2009, the Indian Advertising industry is expected to register12.1% yoy growth in CY2010 to Rs247bn

Advertising Industry to recover registering a CAGR of 14.1% over CY2009-14 to reach a size of Rs427bn

25.0 450

19.9 18.5

12.6 12.1 13.9

14.7

14.9 15.2

10 0

15.0

20.0

250

300

350

400

166 196 221

220

247 281

323 371

427

(0 4)

-

5.0

10.0

50

100

150

200


(0.4)

(5.0)-


Size (Rsbn), LHS YoY Growth (%), RHS

3

p , g

Low Media spend indicates potential

Media spend in India, as a per cent of GDP, is 0.41%. This ratio is almost half of the world’s average of 0.80%and much lower than the developed countries like US and Japan indicating the potential for growth in spends.The current per capita media spend for India is very low at US $4 compared to the other countries. Even thoughit is challenging to reach the levels of countries like US, Japan and UK due to a very large population base and

Per capita Media spend at US $4 extremely low even v/s ChinaMedia spend as % of GDP indicates immense potential

lower per capita spending power, there is scope to follow China and enhance this ratio.With an up-tick in India’s GDP growth, the outlook for the year looks to be more promising with advertisinggrowth returning to double-digit levels.

Per capita Media spend at US $4 extremely low even v/s ChinaMedia spend as % of GDP indicates immense potential

0.78

1.08

0.75

0.90

0.80 0.80

1.00

1.20 491

343 350

400

450

500

0.41

0.20

0.40

0.60

0.80

251

100

150

200

250

300

Source: Group M, Summer 2009, Angel Securities, Note: Data is for 2009Source: Group M, Summer 2009, Angel Securities, Note: Data is for 2009

-

India UK US China Japan World

4 27

-

50

India UK US China Japan

4

Print big in size, but Television to outpace

Television Advertising registered a modest growth of 6.7% in CY2009Print Advertising registered a decline of 4.6% in CY2009, but garnered the largest share at 46.8%Going ahead, Television is expected to garner greater percentage of the total Advertising revenues and constitutethe largest share of the overall media spend aided by higher growth rates

Television Advertising to outpace overall Advertising growth at 15.6% CAGR during CY2009-14

(Rs bn) CY06 CY07 CY08 CY09 #CY06-09 CY10 CY11 CY12 CY13 CY14 #CY09-14Television 61 71 83 88 13.0 99 113 133 155 182 15.6 Print Media 85 100 108 103 6 6 114 127 142 158 176 11 4 Print Media 85 100 108 103 6.6 114 127 142 158 176 11.4 Radio 6 7 8 8 9.1 9 10 12 14 16 16.0 OOH advertising 12 14 16 14 5.4 15 17 19 21 24 12.0 Internet advertising 2 4 6 8 57.4 11 15 18 23 29 29.6 Total Advt Market 166 196 221 220 10.0 247 281 323 371 427 14.1

(yoy growth %) CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14Television 17.5 16.6 16.0 6.7 12.0 14.9 17.0 17.0 16.9 Print Media 22.5 17.6 8.0 (4.6) 10.3 11.5 11.7 11.5 11.8 Radio 22.4 23.3 13.5 (7.1) 11.5 14.9 17.0 17.9 18.8 OOH advertising 17.0 19.7 15.0 (14.9) 9.5 11.3 12.0 12.8 14.2

Source: FICCI – KPMG Media Report 2010, Angel Securities, #Note: Denotes CAGR for the period

g ( )Internet advertising - 95.0 59.0 25.8 41.0 32.7 24.7 25.3 25.0 Total Advt Market 19.9 18.5 12.6 (0.4) 12.1 13.9 14.7 14.9 15.2

5

Key Drivers for growth in M&E

Digitisation

Availability and penetration of newer distributionplatforms like Digital Cable, DTH and IPTV,digitisation of newspapers, magazines, filmsand sale of on-line and mobile music isexpected drive growth in the M&E Industry

Innovation is becoming essential for players toadapt to the changing market scenario, technology and consumer behaviour. Anexample of successful product innovation isthe evolution of IPL as a brand, which has

RegionalizationInnovation

As urban marketssaturate, Regional contentis emerging as one of themost significant and

effectively combined entertainment and sports

RegionalizationInnovation gattractive proposition forMedia players vying forgrowth at reasonablecosts

CC lid ti

Advertisers are looking at multiple delivery platforms for content to break through the l i d i i

The M&E Industry is increasinglygetting fragmented due to the entry of newer players, customers and regions in turn intensifying ConvergenceConsolidation


clutter creating new and exciting methods of monetising content and attracting new media consumers

regions in turn intensifying competition and paving the way to consolidation of operations

6

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TELEVISION

“Efficiency came about on the production side due to recession.Budget were cut by 1/3rd but the quality of programming was notimpacted”

Puneet Kinra, CEO, Balaji Telefilms

“The next decade will be a digital decade, driven largely byconsumer demand for digital quality and triple-play and valueadded services. As digital penetration grows, niche programmingwill evolve as it can cater to specific customers who are willing topay for the same”

Ashok Mansukhani, Director - Hinduja Ventures

“Digitalization, equitable pricing and level playing fields could change the scenario for growth of DTH in India”change the scenario for growth of DTH in India

Tony Dsilva, COO, Sun Direct

“Currently from almost 60 percent revenues for the industrycoming from analog, it will move to a level where digital revenues

ill k d h i h i h i ill b hi h i hwill overtake and their share in the pie will become higher in thenext two years. However, the analog platform will never becomecompletely outdated and will co exist with digital cable and DTH”

Siddharth Jain, VP – Distribution, Turner International

7

Multiple levers to drive strong growth

Television is the largest segment in the overall M&E Industry with a size of Rs257bn, and is expected to post aCAGR of 15.2% over CY2009-14E to achieve a size of Rs522bnAdvertising is expected to register 15.6% CAGR during the period, marginally higher than the 15% CAGR thatSubscription is likely to register during the period

Advertising and Subscription to aid Television outpace overall M&E growth

18.0

20.0 600

522

133

155

182

10.0

12.0

14.0

16.0

300

400

500

%)s bn)

257290

336

382

448

122 140 158 169 191223 249

293340

6171

83 8899

113

2.0

4.0

6.0

8.0

100

200

((Rs

183211

241257


-0


Advertising Subscription YoY Growth (RHS)

8

p , g

Key factors indicate good times ahead

No of TV Households rose 5% in 2009 driving TV penetration to 58%Average Time spent watching Television on the rise

119

135

151 152

100

120

140

160

95 93

150

200

250

on)

0

20

40

60

80

100

(Minu

tes)

123 129

0

50

100

150

2008 2009

(No

in M

illio

Source: Companies, Angel Securities

No of C&S Households rose 10 % in 2009 driving penetration to 74%

Source: Companies, Angel Securities

DTH Subscribers grew a whopping 60% in 2009 to 16mn

2006 2007 2008 20092008 2009

Non TV HHs Total TV HHs

140100

8695

3734

40

60

80

100

120

140

(No

in M

illio

n) 70 692 4

1016

30

40

50

60

70

80

90

(No

in M

illio

n)

Source: Companies, Angel Securities Source: Companies, Angel Securities

0

20

40

2008 2009Non C&S C&S

0

10

20

2008 2009

DTH Digital Analog

9

Share of Broadcasters to rise…

The share of Broadcasters in the total subscription pie is expected to rise from current levels of 18% in 2009 to27% in 2014 driven by better transparency on account of higher digitisationSubscription for Broadcasters is expected to record CAGR of 24% vis-à-vis 15.6% in AdvertisingThe share of Subscription revenues for Broadcasters is expected to increase from 26% in 2009 to 33% by 2014

Subscription Revenues to drive strong growth for Broadcasters

3

32 33

33

35 300

155

18226

28

30 31

25

27

29

31

150

200

250

(%)

Rs bn

)

31 39 49 59 7490

8899

113

133

17

19

21

23

50

100

(R


31 3915 0

CY2009 CY2010 CY2011 CY2012 CY2013 CY2014

Advertising Subscription Subs as % of Total (RHS)

10

…driven by the Digitisation wave

The penetration for digital cable and DTH is expected to increase at a much faster rate than anticipatedThe total number of DTH and digital subscribers is expected to reach up to 43mn and 40mn respectively, by2014The Government in India could also mandate a sun-set clause for channels to go completely digital, like someother developed nations in the worldARPUs would however remain flat in 2010 and grow marginally from thereon due to excessive competition, notonly from other players but from other platforms as well

Di it l S b ib t i t f t ARPU t i d Digital Subscribers to rise at a faster pace ARPUs to remain under pressure

(Rs) 2009 2010 2011 2012 2013 2014Analog 160 160 165 165 170 170Digital 160 160 170 180 201 226DTH 150 150 159 169 189 211

(Mn) 2009 2010 2011 2012 2013 2014Analog 69 68 63 59 56 55Digital 4 10 19 27 35 40DTH 16 24 30 35 39 43


DTH 150 150 159 169 189 211IPTV 160 160 170 180 201 226

DTH 16 24 30 35 39 43IPTV 0 0 1 2 2 3


11

PRINT

“As demand picks up with improving economic conditions coupled with supplyrationalization, we expect newsprint prices to rise to an average of USD 625-650 ton over 2010 and to be around USD 675/ton over 2011”

Mohit Jain, Times of India - Chairman,Newsprint Association of IndiaNewsprint Association of India

“Shift of the markets from metro to tier-II and tier-III towns is nolonger a statement to be debated. Marketers are now focusing inthis area. Hence where as the yield ratio; that is the cost ofthis area. Hence where as the yield ratio; that is the cost ofreaching audience through use of print, used to 12 times forEnglish than for the regional languages in 2003, it has comedown to 9 times in 2008 and we ideally feel the same wouldgradually come down to 3-4 times”

Girish Agarwal, Director, Dainik Bhaskar

“Whereas whole of newspaper industry was gasping completelystrangulated by the huge amount of pressure on advertisementrevenue as a result of one of the worst economic downturn in2009 Regional Language press not only survived but also2009, Regional Language press not only survived but alsocontinued to progress and is again back to more than double digitgrowth trajectory. Year 2009 was a testimony of our faith andRegional Media coming of age”

R.K. Agarwal, CFO, Jagran Prakashan

12

Set to gain post a year of pain

Print registered a muted 1.3% yoy growth in CY2009 to Rs175bn largely supported by a 12% yoy growth inCirculation revenues (aided by cover price hikes) as Advertising declined 5% yoyWith economic recovery on-track, second half of the year witnessed an increase in advertisement off-takeGoing ahead, Print is expected to stage a recovery and register a modest 9% CAGR over CY2009-14 aided by14.3% CAGR in Advertising and 6.3% CAGR in Circulation during the period.

Recovery in Advertising to drive Print Media Revenues

20.0 300

268

7680

8488

92

10 0

12.0

14.0

16.0

18.0

150

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85 100 108 103 114 127 141158

176

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2 0

4.0

6.0

8.0

10.0

50

100

150 (%(Rs c 139


-

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Circulation Advertising YoY Growth (RHS)

13

p , g

Education tops the list of Advertisers

In 2009, top-10 sectors contributed to 64% of the revenues of the Print Sector. Education, Services,Banking/ Finance, Auto and Retail were the major contributors with a revenue share of 49%Sectors such as Banking/ Finance, Retail, Real Estate, and Travel and tourism, etc. were adversely impacted bythe economic slowdown resulting into muted 3% volume growth in Print during 2009While the Services and the Banking/ Finance sectors saw a decline of 1% and 4% respectively, the Education andFMCG Sectors provided some support clocking growth of 5% and 31% respectively, in 2009English newspapers bore the brunt of reduced advertisement off-take during 2009, while high exposure to morestable sectors such as FMCG, Education, Telecom, Social/ Political and local advertisements helped the Regionalnewspapers record lower olatilit in ad ertisementsnewspapers record lower volatility in advertisements

Educational Institutions is the largest category of advertisers in PrintEducation Sector maintained its No1 advertiser position in 2009

Top 10 Sectors in Pr int % Share

Education 15

Top 10 Categories in Pr int % Share

Educational Institutions 11

l dServices 11

Banking/Finance/Investment 9

Auto 7

Retail 5

Durables 4

Personal Accessories 4

Social Advertisements 9

Independent Retailers 4

Cars/ Jeeps 4

Properties/ Real Estates 3

Hospitals/ Clinics 2

Corporate/ Brand Image 2

Source: Adex India, Angel SecuritiesSource: Adex India, Angel Securities

Personal Accessories 4

Personal Healthcare 3


Textiles/ Clothing 2


Coaching Centre/ Compt Exams 2

Events 2

Jewerellery 2

14

Regional markets dominate the numbers…

Of the more than 62,000 newspapers printed, around 92% are published in Hindi and other vernacularlanguagesAs a result, regional language newspapers also dominate the readership statistics with only one Englishnewspaper (The Times of India) among the top-20 newspapers and none figuring among the top-10 newspapersA comparison of the readership of the top-5 publications in various languages indicates that Hindi newspapers(159mn readers) have significantly high readership compared to the English newspapers (31mn readers)

Hindi tops the list of Readership amongst all languages by a significant margin

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15

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…but English dominates Revenue share

Industry estimates indicate that advertisement rates in English dailies operate at between 5–10 times the rates forthe Hindi and VernacularsHence, despite having higher number of registered newspapers, higher readership: circulation multiple and lowerCPT (cost per thousand readers), Hindi dailies command a lower share of the Advertising RevenueOn an average, it is estimated that English newspapers contribute approximately 45% of the advertisementmarket, with Regional Print constituting 50% share

English Dailies garner the highest share of Ad Spends English Dailies have significantly higher CPTs

English Dailies45%

Vernacular Dailies25% 34

Regio

nal

87

English

Source: Adex India, Industry Estimates, Angel Securities Source: FICCI – KPMG Media Report 2010, Angel Securities

Business Dailies

5%

Hindi Dailies25%

0 20 40 60 80 100

(CPT, Rs)

16

The gap is expected to narrow

Print Media penetration in the Urban areas is significantly higher than the Rural areas indicating higher growthpotential for Regional Print Media. Moreover, the number of readers in both Urban and Rural India from thelower socio-economic classes have the maximum growth potential due to low penetration levels, which againre-iterates our view that Hindi Print has higher growth potential (refer Tables below).Going forward, Regional print is expected to drive the overall advertising growth in the Print Sector on the back ofgrowing focus of established national advertisers from across various sectors on the growth potential in tier 2/3cities and lower socio-economic classes, which are the primary consumers of Regional print.

Penetration of Print in Urban areas is high at 57% Low Penetration of Print in Rural areas at 30%

All Literates Pr int TR 000s % 000s % 000s %

All India 861,922 100 590,132 68 332,342 39

All Literates Pr int TR 000s % 000s % 000s %

All India 861,922 100 590,132 68 332,342 39

Urban 272,032 100 225,946 83 154,253 57 SECA1 9,209 100 9,115 99 8,710 95 A2 18,491 100 18,138 98 16,446 89 B1 21,937 100 21,204 97 18,299 83 B2 22,797 100 21,713 95 17,242 76

Rural 589,890 100 364,187 62 178,088 30 SECR1 24,672 100 22,401 91 16,922 69 R2 76,569 100 65,427 85 43,217 56 R3 238,978 100 186,680 78 88,300 37

Source: IRS 2009 R2, Angel Securities

Source: IRS 2009 R2, Angel Securities

B2 22,797 100 21,713 95 17,242 76 C 55,358 100 51,391 93 37,310 67 D 63,493 100 54,898 86 33,001 52 E1 31,061 100 26,309 85 14,112 45 E2 49,686 100 23,178 47 9,133 18

R4 249,671 100 89,679 36 29,649 12

17

, g

FILM

“The Film industry did not bear the brunt of a recession rather it bore the bruntof poor content and unrealistic budgets”

Ramesh Taurani, Managing Director, Tips Industries

“2009 was a year of correction… the returns did not justify thecosts incurred to acquire content. The market had changeddramatically between 2007 and 2009”dramatically between 2007 and 2009

Sandeep Bhargava, CEO, Indian Film Company

“Going forward, there will need to be a renewed focus oncontent...the success of '3 Idiots' has proved that the revenuepotential of well received films has gone up considerably.”

Siddharth Roy Kapur CEO UTV Motion PicturesSiddharth Roy Kapur,, CEO, UTV Motion Pictures

18

CY2009 – A dismal year for Films

Film Industry witnessed 14% de-growth in CY2009, largely on account of lower domestic theatrical collectionsThe industry was plagued by weak movie pipeline and the occupancy in multiplexes took a hit due to swine fluscare and the strike between the producers and the exhibitors during the first quarter of the financial year.However, the last quarter of 2009 brought some cheer to the industry. The success of films like Ajab Prem KiGhazab Kahani, Aadhavan, Vettaikaran and 3 Idiots boosted the industry’s fortunes. Hollywood films like 2012and Avatar also did well at the box office.

Post 14% de-growth in CY2009, Film Industry is expected to rebound to 9% CAGR during CY2009-14E

(Rs bn) CY06 CY07 CY08 CY09 #CY06-09 CY10 CY11 CY12 CY13 CY14 #CY09-14( )Domestic Theatrical 62 71 80 69 3.3 73 79 86 93 101 8.0 Overseas Theatrical 6 9 10 7 6.2 7 8 9 9 10 8.0 Home Video 3 3 4 4 13.1 5 5 6 7 7 11.8 C&S Rights 5 6 7 6 7.9 7 8 9 10 11 12.8 Ancillary Revenue 2 3 4 4 12.9 4 5 5 6 7 15.0 yTotal Industry Size 78 93 104 89 4.6 96 105 115 125 137 8.9

(yoy growth %) CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14Domestic Theatrical 19.3 15.1 12.2 (14.6) 7.0 8.2 8.2 8.4 8.4 Overseas Theatrical 7.7 52.5 12.2 (30.4) 7.4 8.2 8.9 8.1 8.6

Source: FICCI – KPMG Media Report 2010, Angel Securities, #Note: Denotes CAGR for the period

( )Home Video - 13.8 15.2 13.2 9.3 10.6 13.5 11.9 12.1 C&S Rights 50.2 24.9 15.0 (11.8) 11.1 12.9 13.9 12.2 12.9 Ancillary Revenue 21.9 20.0 20.1 - 16.1 14.6 14.9 14.8 14.5 Total Industry Size 24.7 18.6 12.7 (14.4) 7.8 8.9 9.2 9.2 9.3

19

p , g , p

Emerging Revenue streams to drive growth

Over the next five years, the Filmed Entertainment Sector is expected to post a CAGR of 8.9% to Rs136.8bn byCY2014 driven by higher number of multiplexes, better occupancies (dependent on movie pipeline), roll-out ofdigital infrastructure across screens (reducing piracy) and higher revenues from C&S RightsThe domestic theatrical revenues are expected to decline marginally going ahead, but in the long run, it isexpected to remain the dominant revenue source for the industry contributing as much as 74% of the totalrevenues in CY2014

C&S Revenues to grow faster; Theatrical Revenues to remain the dominant revenue stream

Home Video6%

Cable & Satellite Rights8%

Ancillary Revenue Streams

5%

2014E

Overseas

Home Video5%

Cable & Satellite Rights7%

Ancillary Revenue Streams

4%

2009

Domestic Th t i l

Overseas Theatrical

7%

6%

Domestic h l

Overseas Theatrical

8%


Theatrical 74%

Theatrical 76%

20

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RADIO

“Growth in sales of FM enabled handsets has been a big contributor to growthin FM listenership”

Prashant Pandey, CEO, ENIL

“The industry in a more deregulated regime has existed for onlyfive years, plus it is still governed by policies like an inability toown more than one frequency in a city – hence players have notown more than one frequency in a city hence players have nothad adequate time or opportunities to differentiate. It will takepolicy changes and time to invest in and develop differentiatedbrands”

Apurva Purohit, CEO, Radio City

“Post Phase 2, growth in large cities happened largely in volume.Value growth did not happen”

S. Keerthivasan, Business Head, Fever FM

21

High Potential, Challenges Remain

Like other media sectors, the Radio Industry was also affected by the economic slowdown in CY2009The private FM Radio Industry declined by around 7% during the year (revenues for the individual players eitherstayed largely flat or de-grew by up to 10%), accounting for a mere 1.4% of the overall M&E Industry and 3.5%of overall Advertising Revenues.

16 0

18.0

Radio Sector poised for a 16% CAGR growth during CY2009-14E to Rs16.4bn

10.0

12.0

14.0

16.0

bn)

16% CAGR

8.4 7.8 8.8 10.0

11.7 13.8

16.4

2.0

4.0

6.0

8.0 (Rs

0.0

CY2008 CY2009 CY2010 CY2011 CY2012 CY2013 CY2014


22

Phase-III licensing – the next trigger

Over the next five years, the Radio Sector is expected to register a robust CAGR of about 16% to Rs16.4bn byCY2014EGrowth in the Sector is likely to driven by continued increase in the number of Radio Stations after Phase-IIIlicensing, further liberalisation of Regulations and better ability of Radio stations to sell Ad space. Introduction ofnew performance metric tool like RAM (Radio Audience Measurement) is also expected to aid growth in RadioAdvertisingTRAI has outlined some key recommendations for Phase-III licensing of the Sector, which if cleared would helpimprove Operating efficiency of the Radio companies and attract higher foreign investments. Some of theimportant recommendations of TRAI incl de Increasing FDI limits to 26% from the c rrent 20% permittingimportant recommendations of TRAI include - Increasing FDI limits to 26% from the current 20%, permittingextension of license period and allowing ownership of multiple frequencies

R l t S h t T 8 M t Oth T 30 iti S ll iti

High anticipation around Phase III bidding on account of significant number of new licenses

Regulatory Snapshot Top 8 Metros Other Top 30 cities Smaller citiesExisting Licenses 48 65 162Unallocated in Phase2 8 7 78New licenses in Phase 3 3 22 >650S FICCI KPMG M di R t 2010 A l S itiSource: FICCI – KPMG Media Report 2010, Angel Securities

23

Angel Media Universe

Recommend Jagran Prakashan and PVR as our Top Picks in Media

Company Reco CMP TP Mcap(Rs) (Rs) (Rs cr ) FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E

EV/Sales RoE (%)EPS (Rs) P/E (x)

BroadcastingBalaji Telefilms Accumulate 53 55 687 3.3 4.6 16.1 11.6 0.3 0.2 5.4 7.0 TV Today Buy 112 140 656 9.9 11.7 11.3 9.6 1.5 1.2 13.7 14.0 Zee News Neutral 70 - 1,679 3.2 3.8 22.1 18.4 2.5 2.2 21.7 22.3 Pr intPr intDeccan Chronicle Buy 158 216 3,945 12.4 14.7 12.7 10.8 3.3 2.7 20.4 20.9 HT Media Buy 141 170 3,332 7.1 8.5 19.8 16.6 2.1 1.8 14.2 15.1 Jagran Prakashan Buy 117 160 3,548 6.7 8.0 17.5 14.7 3.3 2.9 30.5 33.2 Multiplexes

Source: BSE, Angel Securities, Note: CMP as on April 6, 2010

Cinemax India Buy 68 106 188 6.0 8.2 11.3 8.3 1.1 1.0 9.8 12.4 Inox Leisure Buy 70 81 413 4.2 5.8 16.9 12.1 1.4 1.2 7.8 9.8 PVR Buy 174 211 405 8.5 15.0 20.3 11.6 1.1 1.0 6.8 10.8

24

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Angel Securities Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that areg p p y g yinconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may ormay not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed tofocusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, and isfor general guidance only. Angel Securities Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,g g y g p y g y ynor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Securities Limitedendeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us fromdoing so.

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Angel Securities Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in amerger or specific transaction to the companies referred to in this report, as on the date of this report or in the past.Neither Angel Securities Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use ofthis information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section).

Disclosure of Interest Statement Zee News1. Analyst ownership of the stock No2. Angel and its Group companies ownership of the stock Yes3. Angel and its Group companies' Directors ownership of the stock No4. Broking relationship with company covered No

Note: We have not considered any Exposure below Rs1lakh for Angel, its Group companies and Directors; Apart from Zee News, no holdingsin the other stocks mentioned in the Angel Media universe.

ficci - kpmg media presentation - key takeaways - 7 apr 2010

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