ENIL

[Regulatory cover note] INVESTOR UPDATE PERFORMANCE REVIEW: Q2 FY20 Nov 13, 2019 1 Presentation Path ❖ Financial Review ❖ Business Review ❖ Strategic Direction ❖ Investors Contact 2 Condensed Statement Of Operations Standalone %age of %age of ₹ In Millions Q2 FY20 Q2 FY19 Growth (%) Total Income Total Income Income from Operations 1,096.9 96.3% 1,216.3 99.3% (9.8%) Other Operating Income 42.3 3.7% 9.0 0.7% 371.2% Total Income 1,139.1 100.0% 1,225.3 100.0% (7.0%) Operating Expenditure 864.1 75.9% 951.9 77.7% (9.2%) EBITDA 275.0 24.1% 273.4 22.3% 0.6% Depreciation 112.7 9.9% 41.2 3.4% 173.6% Amortisation 132.9 11.7% 124.5 10.2% 6.8% EBIT 29.4 2.6% 107.7 8.8% (72.7%) Other Income 31.7 2.8% 33.0 2.7% (3.9%) Finance Cost 46.2 4.1% 10.9 0.9% 323.1% Profit Before Tax (PBT) 15.0 1.3% 129.8 10.6% (88.5%) Taxation 2.6 0.2% 40.4 3.3% (93.6%) Profit After Tax (PAT) 12.4 1.1% 89.4 7.3% (86.1%) Other Comprehensive Income (net) ( 1.7) (0.2%) 0.3 0.0% (660.3%) Total Comprehensive Income 10.7 0.9% 89.7 7.3% (88.1%) 4 Financial Performance Q2FY20 (All comparisons with corresponding period of previous year) • Revenues from operations during the quarter were Rs. 1,139.1 million; down by 7% • Non-FCT business (including Other Operating Income) witnessed a strong revenue growth at 33.9% • Non-FCT gross margins > 45% • Revenue of Migrated stations (35) de-grew by 7.2% during the quarter • Batch 1 revenues during the quarter: Rs.168.9 million, down 21.8%; EBITDA: Rs. 25.0 million (Q2FY19 – Rs. 23.8 million) • Revenues from Batch 2 stations: Rs. 37.9 million; EBITDA in Batch 2 stations: (Rs.0.7 million) [Q2FY19 – (Rs. 14.8 million)] • Impact of Ind AS 116 - Company’s EBITDA improved by Rs. 86 Million and PAT lower by Rs.17.5 Million • Tax expense of Rs 2.6 Million includes Deferred tax of Rs 2.8 Million • Company generated an operating cash flow Rs.328.0 million during the quarter • Cash and Cash Equivalents as on September 30, 2019 was Rs. 1718.8 million 5 Condensed Statement Of Operations Standalone %age of %age of ₹ In Millions H1 FY20 H1 FY19 Growth (%) Total Income Total Income Income from Operations 2,393.7 97.5% 2,395.9 98.1% (0.1%) Other Operating Income 61.2 2.5% 45.4 1.9% 34.8% Total Income 2,454.9 100.0% 2,441.3 100.0% 0.6% Operating Expenditure 1,849.3 75.3% 1,884.3 77.2% (1.9%) EBITDA 6 05.6 24.7% 5 57.0 22.8% 8.7% Depreciation 222.0 9.0% 71.1 2.9% 212.3% Amortisation 264.2 10.8% 246.5 10.1% 7.2% EBIT 1 19.3 4.9% 2 39.4 9.8% (50.2%) Other Income 62.8 2.6% 60.6 2.5% 3.7% Finance Cost 92.6 3.8% 20.2 0.8% 359.7% Profit Before Tax (PBT) 8 9.4 3.6% 2 79.8 11.5% (68.0%) Taxation 28.7 1.2% 98.2 4.0% (70.8%) Profit After Tax (PAT) 6 0.7 2.5% 1 81.6 7.4% (66.6%) Other Comprehensive Income (net) (2.9) (0.1%) 0.4 0.0% (881.2%) Total Comprehensive Income 5 7.8 2.4% 1 82.0 7.5% (68.2%) 6 Condensed Statement Of Operations Consolidated %age of %age of ₹ In Millions Q2 FY20 Q2 FY19 Growth (%) Total Income Total Income Income from Operations 1,113.4 96.3% 1,216.3 99.3% (8.5%) Other Operating Income 42.2 3.7% 9.0 0.7% 371.0% Total Income 1,155.6 100.0% 1,225.3 100.0% (5.7%) Operating Expenditure 875.5 75.8% 952.0 77.7% (8.0%) EBITDA 280.1 24.2% 273.3 22.3% 2.5% Depreciation 126.6 11.0% 40.9 3.3% 209.7% Amortisation 132.9 11.5% 124.8 10.2% 6.5% EBIT 20.6 1.8% 107.7 8.8% (80.8%) Other Income 33.4 2.9% 34.6 2.8% (3.6%) Finance Cost 49.3 4.3% 10.9 0.9% 351.8% Profit Before Tax (PBT) 4.7 0.4% 131.4 10.7% (96.4%) Taxation 2.8 0.2% 40.9 3.3% (93.2%) Profit After Tax (PAT) 1.9 0.2% 90.5 7.4% (97.9%) Other Comprehensive Income (net) (1.8) (0.2%) 0.3 0.0% (691.3%) Total Comprehensive Income 0.1 0.0% 90.8 7.4% (99.9%) 7 Summarized Balance Sheet Standalone As on ₹ In Millions %age to %age to 30-Sep-19 31-Mar-19 Total Total Shareholders' Funds Capital 476.7 4.1% 476.7 4.9% Reserves and Surplus 8,618.6 74.4% 8,845.6 91.5% Net Worth 9,095.3 78.5% 9,322.3 96.4% Deferred Tax Liability (net) 234.6 2.0% 346.1 3.6% Financial liabilities 2,250.1 19.5% 2.4 0.0% Total 11,580.0 100.0% 9,670.8 100.0% Fixed Assets (Net) Tangible Asset 2,730.6 23.6% 806.4 8.3% Capital Work in progress 15.6 0.1% 219.5 2.3% Intangible Asset 5,998.5 51.8% 6,100.6 63.1% Sub-total 8,744.7 75.5% 7,126.5 73.7% Equity in ABSL & EN INC 141.7 1.2% 105.9 1.1% Investment Properties 21.8 0.2% 20.8 0.2% Other Long Term Assets (Net) 290.3 2.5% 227.3 2.4% Net Short Term Assets 662.7 5.8% 624.2 6.4% Cash & Cash Equivalents 1,718.8 14.8% 1,566.1 16.2% Total 11,580.0 100.0% 9,670.8 100.0% 8 Condensed Statement Of Operations Consolidated %age of %age of ₹ In Millions H1 FY20 H1 FY19 Growth (%) Total Income Total Income Income from Operations 2,418.6 97.5% 2,395.9 98.1% 0.9% Other Operating Income 61.2 2.5% 45.4 1.9% 34.8% Total Income 2,479.8 100.0% 2,441.3 100.0% 1.6% Operating Expenditure 1,869.1 75.4% 1,884.4 77.2% (0.8%) EBITDA 610.7 24.6% 556.9 22.8% 9.7% Depreciation 244.8 9.9% 70.8 2.9% 245.9% Amortisation 264.2 10.7% 246.8 10.1% 7.1% EBIT 101.6 4.1% 239.3 9.8% (57.5%) Other Income 66.0 2.7% 64.0 2.6% 3.1% Finance Cost 98.0 4.0% 20.2 0.8% 385.9% Profit Before Tax (PBT) 69.6 2.8% 283.1 11.6% (75.4%) Taxation 29.2 1.2% 99.3 4.1% (70.6%) Profit After Tax (PAT) 40.4 1.6% 183.8 7.5% (78.0%) Other Comprehensive Income (net) (3.0) (0.1%) 0.4 0.0% (901.6%) Total Comprehensive Income 37.4 1.5% 184.2 7.5% (79.7%) 9 Key Operating Highlights • After the successful launch of eight radio stations in the US, Mirchi is available on two more frequencies in New Jersey – 92.7 FM and 103.3 FM HD 2 to strengthen presence in towns with significant Indian diaspora • Mirchi won prominent awards at the Indian Content Leadership Awards, Golden Mikes, ERA Awards, New York Festivals and ACEF Radio Awards • Mirchi Play has 33 online stations operating on Gaana platform • Mirchi has launched online radio station in Punjabi for Delhi. This is our second city-centric online radio station. • Our flagship YouTube channel re-branded from Radio Mirchi to Filmy Mirchi, now focused exclusively on Bollywood • Mirchi has now 11 channels in different languages on YouTube • Mirchi has the largest social media footprint amongst private FM players 11 Strategy : Three Pivots Strategy :Three pivots…. All content Programming Solutions Revenue All platforms Radio Platform FCT FM 12 MIRCHI THUNDER RUN It is an obstacle race that happens in monsoon where more than 1200 people participated and challenged their physical capabilities and strength. 13 MIRCHI FACE OF FASHION A month long hunt for fashionista via college events selected by round robin format followed by fashion show. The winner of the show got the chance for audition in a movie for lead role. 14 MIRCHI CAMPUS ROCK STAR 20 College activation spanned over north cluster targeting top institutions in Chandigarh, Punjab, HP and J&K. 15 MIRCHI MEGHA HOUSIE Mega Tambola game along with one week display at Mall 16 MIRCHI SHOPPING CAR NIVAL Shopping Carnival across 25 retail stores in Lucknow for 3 weeks, lucky draw where winners get a car and other consumer durable goods 17 MIRCHI MOVIE NIGHTS Mirchi Movie Screening of Surkhi Bindi with Movie star cast i.e. Sargun Mehta & Gurnaam Bhullar 19 MIRCHI LIVE WITH PANKAJ UHDAS Attendees -1200 20 MIRCHI LIVE WITH KUMAR SANU Attendees -4500 21 FORD – Pause, Reflect, Discover Campaign Attendees -4500 22 SOUTH India’s Biggest Singing Hunt Views -386.5K Impressions -16.9K Watch Time - 346.2K 23 Mirchi Play Original - Do Not Disturb • A Mirchi Original web series “Do Not Disturb” featuring Malhar Thakar & Mansi Gohil was launched on MX Player in the month ofAugust • Malhar’s & Mansi’s visit to Mirchi studio was captured and used as digital content by all the Mirchi RJs across Gujarat to promote the show • Two YT videos: Fun segments revolving around both the characters were released on Mirchi Gujarati. The videos received good traction on our channel. 24 MIRCHI LOL Top stand-up comic Kenny Sebastian & Kanan Gill performing for a live audience, the show was houseful with 1800 in audience. 25 New Programming Shows New Show Launches Regional Popular Shows in Devdutt Gujarat and Patnaik Show Bengali also launched introduced in the early on morning time weekends band. 26 MIRCHI TREE IDIOTS – SPREADING ITS WINGS TO SIX CITIES OF GUJARAT! 1.The activity took place in Ahmedabad, Baroda, Surat, Rajkot, Bhavnagar & Palanpur. 2.The campaign this year started with a quirky teaser which was followed by an interesting revealer! 3.Backed up with an exhaustive on air, TREE IDIOT SONG VIDEO on ground and digital promotional CROSSING 1M VIEWS! plan, the registration number reached 1.8 lacs inAhmedabad. 4.Mirchi RJs across Gujarat went to various on ground places for driving awareness and planting trees. 27 MIRCHI SOCIAL INTIATIVE NAGPUR - # SALUTE THE SOLDIERS 1. Tie-up with Indian Army and Delhi Public School to send letters & Rakhis to soldiers of the Indian Army 2. 10 Shortlisted letters were aired on Mirchi from 10th to 15th August 2019 3. Letters & Rakhis were sent by Indian Army to their units in border areas 28 MIRCHI SOCIAL INTIATIVE Brand Mirchi – Keeping Mumbai Clean! 3 TONS = 2700 KGs of waste cleared in just 3 HOURS!!! Garnered attendance of over 2000 volunteers at Juhu Beach Campaign On - ground creatives activity 29 MIRCHI DIGITAL Mission Mangal videos cross 3.7 million views 30 MIRCHI DIGITAL Tie ups with digital platforms like TVF & Alt Balaji to promote jock led content. 31 MIRCHI DIGITAL Launched 2nd city centric web radio – Mirchi Delhi Punjabi • These are specialized city centric web-only products 32 MIRCHI DIGITAL Mirchi Play is now a 33 station portfolio on Gaana 33 MIRCHI DIGITAL Leveraging Moment Marketing Mirchi’s take on the • Our engineer’s We gave the Meme around Chandrayaan trend day post got #FaceAppChallenge, the WC fervor • Views – 31K featured on a Mirchi twist • Engagement • Reach – 71K social samosa • Likes – 3.5K – 2.5K • Engagement – • Reach – 73K • Reach – 7.7K 173K • Reach – 98K 34 MIRCHI DIGITAL IGTV platform leveraged to build our audience and increase engagement with Instagram audiences Kabir Singh comment reaction video • Video Views – • Video Views – • Video Views – 175k 107k 125k • Engagement – • Engagement – • Engagement – 6K 14k 11K 35 MIRCHI IN US with HOWDY MODI Howdy, Modi! Event was broadcasted live across Radio Mirchi Network in US 36 Little Master at Radio Mirchi USA studio Little Mater at Radio Mirchi USA studio 37 India Day Parade in Manhattan • Huge Visibility for the brand at India day parade attended by thousands of people • Radio Mirchi RJ Neha hosted the cultural event • Radio Mirchi gave away branded pop sockets at the event 38 INVESTOR CONTACT Entertainment Network is committed to improving its performance every fiscal and continuously enhance shareholder value through successful implementation of its growth plans. The Company’s investor relations mission is to maintain an ongoing awareness of its performance among shareholders and financial community. This update covers the company’s financial performance for Q2FY20 We thank you for your support and welcome your feedback and comments regarding this update and other investor issues For further information please contact: N. Subramanian, ED & Group CFO, ENIL Tel: +91 (22) 67536983; Email: n.subramanian@timesgroup.com Kailash Yevale, Adfactors PR Tel: +91 (22) 67574444 ; Email: kailash.yevale@adfactorspr.com 41 Disclaimer 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. 42 [Investor-call recording transcript] Should we play one more time? Yes, of course. Ready? Ready, ready, let's go. Ready? Bird, fly. Dog, fly. Can we all just sing one of the favourite songs together? Dil mein maan se... Ya, that's... You're from this team? Kuch yaad nahi... Dil mein maan se hai... Okay, I don't remember anything from before. Dil mein maan se hai... Kabhi bhi kuch yaad nahi... Dil mein maan se hai... So how do you select your... Scripts. Normally it's different process. This time I knew you were in it, so I said yes. We have it on record. Gandhi se Gandhi script leke aunga iske paas... Aur isko aap urna hi pade. Mai hu na. Krissi, Krissi, Krissi. I keep getting confused. Mai yeh bol raha tha kheech mat de na, kukki hu balon pe chipkaya hua tha. Actually agli film ka title ho skata hai, Baal toh. I love her film, Akhira. Akhira. Oh, Akhira. How you're like that, Akshay? What do you eat, ya? It's amazing. And everybody's like, haa, Akshay ne joke mara hai, theek hai le lete hain, it's okay. Joke ne mara tha, yeh hum aise hi masni karte hain, aapas mein khel koot karte hain. Pada, aapko 28 din mein humne film khatam karte hai. Haan, kya? 28 din mein humne film khatam ki thi. Ya. Ab, ab, ab, 28 din mein jo kya? Haan, aap toh tere baghe se zinda hai. Humko pataayi nahi chala ki, we just had such a blast on set. Ya. I was actually asking... Haan, leke mujhe pata chala. Mujhe khaane wana lana parda, mujhe pata chala. Vidya, Vidya, I want to ask, from Bulbulaiya to here, working with Akshay and Hebebe of course, anything that has sort of added to the relationship? Ya, change. You know, we've both grown younger and... Ya, ya, ya. We can vouch for that. I really didn't know how it would be because we didn't work together for 12 years. From Vidya bhenji, she's become Vidya bhai saav. That's a big change. That's quite a big change. You know, things would have changed, but trust me, it was as much fun. How fun? Ya, abhi uski chala kuch raha hoon yaar. This is an amazing thing, Akshay na. If she doesn't ask any question, she's doing her own thing. Ready to listen who's answering, what is it. No, I'm listening with my ears na. Pay some respect. Akshay kya susthe hain? Pay, matlab kyaise pay gana hai? Pay your respect to it. Pay, I'll pay you later. Actually, ma'am, mujhe na iske upar biopic bali hai. Toh uska naam rakna hai, tohla. I'm useless, Akshay. No, no. I'll make a troller. I'll play the troller. Different, different names. Naam se na isko mai messages bheja karunga. There's one more song which is going to come out. We actually got inspired. Badai, bachpan mein hum log Chidiya Udi khelte the. Ya. Udi ka, manlab urne ka saara kuch tha. Toh actually we got inspired and we made a song. Why don't we all play Chidiya Udi? Let's do that. Let's do that. I'll put it on my... Arre aisa nahi. Yes. Order. Order. Udi. Chidiya Udi. Nahi itna time nahi. Phada bhat karna hai, phada bhat. Chidiya Udi. Kutta Uda. You have to do this. Oh no. Tara ghar bahar leke hain. Sahaj ho hai. And you know, we have to save ourselves. Kaise, kaise bachana hai? I think I'm going to smack her. Yes. Wrong. Yes. I have to. I have to. Ya, you have to. Arre. Ya. Ready to bolo. Ready to ho gaya hai. Ya, theek hai. Arre, aap jaldi utte ho, hum jaldi nahi utte hain. Aur karan TV program. Aur karan TV program. Mane nahi kya tha. Sir, mere boss ne mula tha. Aur banao TV ko radio. Sorry, radio ko TV aur banao. Mai nahi khel rahe hain. Mai nahi khel rahe hain, mama. Okay, one more? Ya, of course. Ready? Ready, ready. Chalo. Ready? Chidiya vodi. Kutta voda. Same matlab. Same pe bhi. Lekin usne voda hai na, kutta voda hai. Ya, hoyi to. Mera kutta voda hai. Flying dog. Flying dog. Abhi voda kya hai usko. His name is Gavru, man. He flies.