#1HIIHT ІНТ HT Media Ltd Building an Integrated Multimedia Company Investor Presentation May 2009 HII HT Media#2HTML addresses a large & growing value pool through its portfolio of strong businesses ■ HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increase across mediums with the growth in consumption; thereby a strong outlook for the overall Media industry ■ HTML plays in ~50% of the overall media industry ■ HTML has a strong portfolio of businesses that are highly successful and few new ventures that are in the growth phase ■ Hindustan Times - English daily Hindustan Hindi daily - ■ Mint - Business paper ■ Fever 104 - Radio ■ Digital - Portfolio of websites & mobile marketing ■ HTML is an attractive proposition to invest ■ The only company with a large English & Hindi footprint; having a strong brand recall across businesses ■ Sound financial model: strong financial performance over last 5 years ■ Diverse and professional management team ■ Partner of choice for global players II HT Media 2#3Ad intensity is poised to increase as consumption grows India Adex/ consumption vs. consumption per capita 0.7% 0.6% 0.5% 1998-99 0.4% - Asian crisis 0.3% Relaxation of supply constraints - Pokharan 0.2% 0.1% Consumption growth outstripping ADEX growth Pessimistic outlook • With increasing consumption, India should witness an increase in Adex as witnessed in other developing countries • India has seen very modest increases in ad intensity over the past 6 years after a period of rapid increase • India's low volatility growth should support a clear rising trend in Adex 0.0% 200 250 300 350 400 450 500 USD *Ad intensity is the ratio of ad expenditure to private consumption Source: Global Insight; WMM; Euromonitor; McKinsey analysis IIHT Media 3#4India is close to the inflexion point; Russia and China has shown a similar trend Adex as % of private consumption 1.80% 1.60% 1.40% 1.20% Russia: Rapid increase in ADEX with economic recovery post 1999 1999-2006 DATA 1.00% Rapid step up between US$600-1200 0.80% 0.60% 0.40% 0.20% 0.00% 500 1000 1500 2000 2500 3000 3500 Per capita consumption US$ • Income levels dropped drastically in 1998 post crisis . Robust income growth post '99 has seen rapid ramp up in ADEX as consumption soared Adex as % of private consumption • China: Strong ramp up in ADEX growth with income level changes 1.20% Trajectory changes 1.00% 0.80% 0.60% 0.40% 0.20% 1983-2006 DATA between US$600 and 700 India is here 0.00% 200 400 600 800 Per capita consumption US$ Rapid rise in ADEX/ consumption ratio happened between US$600 and 700 when the ratio went up from 0.6% to 1.0% HIIHT Media 4#5Advertisement pie is set to increase manifold across mediums 2007 Ad revenues Per cent Total revenue = ~19,000 Cr 2013 Ad revenues Per cent Segments where HT is present Total revenue = 56,000 Cr Internet Live Ent Others 2% 4% Radia 5% 3% OOH Ads 7% Television 36% New media to increase shares Live Ent Internet 12% 5% Radio 3% Others Print 4% 43% COH Ads 5% Source: FICCI 2008, Euromonitor, Literature searches; Analyst reports, interviews, Television 36% Print 35% II HT Media 50#6HTML has transformed itself to a diversified multimedia company in order to tap a large value pool Transformation journey 2007 Today HTML is established in following domains English daily 1924 1986 ◉ Inaugurated by Mahatma Gandhi 1927 ㅁ Multiple editions launched ㅁ Launched Mint Print Hindi daily Business daily Magazines 2006 ㅁ Entry into radio Digital Job portal Mobile 2008 advertising Launched job portal News websites shine.com Launched prepress services for 2003 overseas magazines Radio Reorganised as HT Media Ltd. Subsequently listed on BSE Incorporated as company Represents ~50% of Media industry Events Social Networking Fever 104 4 radio stations Corporate events Entertainment events HT Media 6#7HTML addresses a large & growing value pool through its portfolio of strong businesses ■ HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increase across mediums with the growth in consumption; thereby a strong outlook for the overall Media industry ■ HTML plays in ~50% of the overall media industry ■ HTML has a strong portfolio of businesses that are highly successful and few new ventures that are in the growth phase ■ Hindustan Times - English daily Hindustan Hindi daily - ■ Mint - Business paper ■ Fever 104 - Radio ■ Digital - Portfolio of websites & mobile marketing ■ HTML is an attractive proposition to invest ■ The only company with a large English & Hindi footprint; having a strong brand recall across businesses ■ Sound financial model: strong financial performance over last 5 years ■ Diverse and professional management team ■ Partner of choice for global players IIHT Media 7#8Hindustan Times is the second largest English daily with strong presence in North India Hindustan Times Chandigarh Mumbai Delhi Regions Covered Heritage and trustworthy brand Bhopal Kolkata 0 о Highly respected Editorial talent & systems ■ Received various awards in last 12 months ■ Asia Media Award Bronze - ■ 3 Plants get 100% rating for SNAP ■ Coveted membership for IFRA - INCQC ■ Critical mass in key cities ■Leadership position in Delhi ■Leader in Chandigarh Strong presence in Mumbai ■ Consumer focus Comprehensive product portfolio II HT Media 8#9While HT Continues to dominate Delhi Market... 15-25 age group readership 60 50 40 51 48 45 30 40 20 10 ° Jul '07 Oct '07 Mar '08 Oct '08 Readership % 60 55 50 54 51 53 45 40 35 30 25 20 Jul '07 Oct '07 Mar '08 Oct '08 SEC A readership % Source: ATP 60 55 50 54 54 51 45 40 35 47 30 25 20 Jul '07 Oct '07 Mar '08 ☐ Oct '08 ■ Strong Readership & Circulation initiatives to retain & lead market shares to continue ■ New targets & locations (Youths & upcoming NCR) ■HT City re-launch - targeting youth. with more colour & content; ■ Youth Centric approach with initiatives such as Campus Calling, Career Call, Job Fairs etc.. ■ Significant local connect initiatives - ILD, DSF, Luxury / Leadership Summit etc.. ■ Targeting double digit revenue growth during the year ■ Pricing - lead by combo offers ■ Volume uptake strategies (Marketing Solutions, BOOST program etc. - draw non / low advertiser segments) IIHT Media 9#10HT Mumbai is gaining market share steadily BO 75 50 60 59 56 52 50 5050 47 46 47 58 57 554 51 53 52 ☐ - 49% Times of India 41 46 48 48 44 14 40 38 42 41 40 - 40% Mumbai Mirror 35 34 6 336 32 30 - 32% DNA 28 30 25 25 28 27 26 23 2126 20 20 23 23 19 20 22 - 22% Hindustan Times 16 17 20 20 16 15 18 15 14 14 12 13 14 11 10 13 99 - 8% Mid Day 8 6 12 0 J JASOND J FMAMJ JASOND J FMAMJ JASOND J FMAMJ JASOND 2006 2007 2008 Source: ATP Readership ■ Our strategy ■ Continue to lead expansion of readership with a steady circulation; reducing wastage Target markets of Youth & SEC A category - attracting & growing the base on a Q-onQ basis ■ On ground initiatives, relaunch of HT Cafe improved brand salience and connect with Youth ■ Translating accelerated readership gains into revenue ■ Retail classified response improving on a MoM basis - local to local revenue ■ Volume & price increases ■ Investment in infrastructure to enhance quality & capacity, to be ready by June, 2009 II HT Media 10#11HTML addresses a large & growing value pool through its portfolio of strong businesses ■ HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increase across mediums with the growth in consumption; thereby a strong outlook for the overall Media industry ■ HTML plays in ~50% of the overall media industry ■ HTML has a strong portfolio of businesses that are highly successful and few new ventures that are in the growth phase Hindustan Times - English daily Hindustan Hindi daily - ■ Mint - Business paper ■ Fever 104 - Radio ■ Digital - Portfolio of websites & mobile marketing ■ HTML is an attractive proposition to invest ■ The only company with a large English & Hindi footprint; having a strong brand recall across businesses ■ Sound financial model: strong financial performance over last 5 years ■ Diverse and professional management team ■ Partner of choice for global players IHT Media 11#12Hindustan is the third largest Hindi daily with dominant presence in large markets fogedilol Punjab 1.Amar Ujala 2.Jagran Chandigarh Rajasthan 1.Rajasthan Patrika 2.Bhaskar Delhi Delhi 1.NBT 2.Hindustan UP 1.Jagran Regions Covered Readership Largest (in million) Market 2.Amar Ujala Bihar Dainik Jagran 16.1 UP 3.Hindustan 1.Hindustan 2.Jagran Dainik Bhaskar 12.9 MP Hindustan 9.3 Bihar Amar Ujala 8.2 UP Bhopal Jharkhand 1.Hindustan Rajasthan Patrika 6.7 Rajasthan 2.Prabhat Khabar 3.Jagran Punjab Kesari 3.3 Har/ HP Navbharat Times 2.3 Delhi MP 0 Source: IRS R1 2009 1.Bhaskar 2Raj Express Nav Bharat о 0.00 ■ Hindustan is leader in Bihar Jharkhand and a strong presence in UP; key markets ■ Recently launched in Meerut, Dehradun & Chandigarh ■ No conflict of market with Bhaskar, No. 2 Player; though gap is ~3.6 million HIIHT Media 12#13Overall, Hindi represents second largest Ad pie across newspapers TV Media Industry Others 10% 2008-09 Projected (Rs million) Print Ad revenue Magzine 15% Dailies 85% Hindi Ad revenue Market UP / Uttaranchal 5,000 Madhya Pradesh 2,500 Others Rajasthan 3,000 27% Punjab 2,000 Delhi NCR 2,000 Bihar 1,200 Jharkhand 600 Others 700 Expected to TOTAL 17,000 grow at -25% Source FICCI PWC report 2007 English 56% Hindi 17% IHT Media 13#14Hindustan - gaining position year on year 3 Ranking 3 3 04 05 06 07 08 1 1 1 1 1 2 2 2 2 2 3 3 4 4 4 4 4 5 5 5 5 5 6 6 6 6 6 7 7 7 7 7 8 8 8 8 8 Highlights Leading Hindi daily with readership in excess of 8 million; No. 3 all over India ■ First ever All - Colour Hindi newspaper ■ Received various awards in last 12 months ■ Asia Media Award - Silver ■ 3 Plants get 100% rating for SNAP ■ Coveted membership for IFRA - INCQC ■ Undisputed market leader in Bihar & Jharkhand with significant presence in Delhi & UP Source - IRS IHT Media 14#15Superior product has helped us succeed in new markets against established competition Kanpur case study 2880 120 100 City Circulation 60 60 40 40 20 20 0 DJ Readership Profile HH AU AHD AU DJ HH % ot total readers SEC A 26% 23% 30% 48% SEC B 32% 35% 30% 34% SEC C 24% 21% 25% 9% SEC D 12% 15% 10% 10% SEC E 6% 6% 6% 0% < Rs 2000 6% 8% 6% 0% Rs 2001-4000 21% 21% 18% 9% Rs 4001-6000 24% 28% 24% 22% Rs 6001 - 10000 30% 28% 35% 32% > Rs 10000 18% 15% 18% 36% Source: ATP Kanpur had been hometown of strongest competitor Dainik Jagran - ■ Our strategy ■ In depth reader research to arrive at offering; launch significantly superior product ■ Best in class paper and printing quality ■ Fast build-up of circulation ■ Outcome ■ No. 2 player within 3 months of circulation (Aug 06) ■ Excellent quality of readership Percentage of SEC A (or Top MHI bracket) readers almost double of AHD average HIIHT Media 15#16Hindustan: well positioned for rapid growth Strengths & Opportunity ■ Heritage / Trustworthy brand ■ Superior quality across Hindi newspapers ■ Highly respected Editorial talent Mrs. Mrinal Pande ■ English leverage across Editorial & Media sales ◉ Opportunity ■ Relatively weak competition compared to English ■ Development of Tier 2 cities Outcome ■ Continues to grow very strongly in all markets ■ Leadership attained in Lucknow, Jharkhand ■Rapid share gains in Kanpur, Patna, Delhi and Agra ■ Rapid expansion - new launches in Chandigarh & Dehradun ■ Provides National Advertisers an effective cost medium with the HT combo pack ■ Jodi package in select markets (with HT) proves to be a "killer" for the Trade Unique to HT & increases Trade's income IIHT Media 16#17HTML addresses a large & growing value pool through its portfolio of strong businesses ■ HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increase across mediums with the growth in consumption; thereby a strong outlook for the overall Media industry ■ HTML plays in ~50% of the overall media industry ■ HTML has a strong portfolio of businesses that are highly successful and few new ventures that are in the growth phase Hindustan Times - English daily Hindustan Hindi daily - ■ Mint - Business paper ■ Fever 104 - Radio ■ Digital - Portfolio of websites & mobile marketing ■ HTML is an attractive proposition to invest ■ The only company with a large English & Hindi footprint; having a strong brand recall across businesses ■ Sound financial model: strong financial performance over last 5 years ■ Diverse and professional management team ■ Partner of choice for global players II HT Media 17#18Mint: strong reader proposition & gaining revenue traction mint Time spent on reading (Minutes) 33 27 35 27 Delhi Readership Profile (%age) Mumbai Delhi 86 82 61 57 43 49 49 Mint ET 23 16 52 62 50 50 AC Computer/ Car desktops LCD TV Digicam Mumbai 74 43 39 37 23 16 15 8 AC Computer/ desktops Source: ATP Survey, Mar 08 44 35 Car LCD TV Digicam ■ Readers proposition is strong and differentiated; supported by a distinct and well segmented readership base ■ World class editorial by domain experts with global experience ◉ 2nd largest business paper in Mumbai & Delhi within first year of launch ■ Best coverage - Gold award and Best Newspaper Design - Silver award Strong online presence with financial portal livem int.com ■ Getting recognized by the advertisers ■ Segmented advertising approach ex. BFSI, Luxury & Premium Brands/ Products etc.. ■ Combo with HT Business, on the ground activation platforms such as CTD etc. to further strengthen readership engagement and consequent advertiser engagements IIHT Media 18#19Mint Clear no. 2 - Circulation in '000 396 Eco Times 110 Mint 69 38 Business Std Hindu Bus. Line Mint has highest RPC of 1.3 as compared to 1.1 of competition Source: ABC Jan- June 08 & IRS R2, 2008 for Delhi NCR, Mumbai & Bangalore, IIHT Media 19#20HTML addresses a large & growing value pool through its portfolio of strong businesses ■ HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increase across mediums with the growth in consumption; thereby a strong outlook for the overall Media industry ■ HTML plays in ~50% of the overall media industry ■ HTML has a strong portfolio of businesses that are highly successful and few new ventures that are in the growth phase Hindustan Times - English daily Hindustan Hindi daily - ■ Mint - Business paper ■ Fever 104 - Radio ■ Digital - Portfolio of websites & mobile marketing ■ HTML is an attractive proposition to invest ■ The only company with a large English & Hindi footprint; having a strong brand recall across businesses ■ Sound financial model: strong financial performance over last 5 years ■ Diverse and professional management team ■ Partner of choice for global players IIHT Media 20#212) FEVER - A High Impact Radio Station 332x52 cm WIN Rs.1,04,000 EVERY 104 MINS EVERYDAY! Tune into Fever 104 FM now to find out how Fever FM NO AGONY AUNTS. JUST MUSIC 104 Fever ■ Differentiated positioning: Less Talk More Music....Format radio station ◉ 104 Targeted at SEC AB, between 25-34 years of age ■ Collaboration with Virgin enabling operational excellence A leadership team of global radio experts with a track record of successful radio stations in Asia, South Africa and Europe ■ Current footprint in Delhi, Mumbai, Bangalore and Kolkata; addressing 60% of the industry ■ Consistently improving Performance ◉ Created listener interaction and engagement through innovative consumer promotions Acquiring dominant positions in key markets NO SILLY JOKES. JUST MUSIC NO RECIPES JUST MUSIC. ☐ 10% No. 1 in Mumbai & Bangalore Maintaining No. 2 position in Delhi II HT Media FM 21#22Fever is the fastest growing station in H2 2008 10% -19% 57 47 52 52 47 -10% Source: AirCheck 43 H2 2007 H2 2008 -13% 39 39 37% 63% 35 44% 31 20 20 28 I 16 27 22 6 22 22 30 Big Mirchi Red City One Fever Meow Others Ad volume in lacs seconds, without house ads II HT Media 22 22#23Traction building up across the stations of launch for Fever.. Market Share in Delhi - FY 08 27.1 26.3 25 20 15 11.2 10.9 10 8.8 7.8 8.8 86 9.6 10.2 6.7 8.4 7.4 4.3.4 3.7 3.5 ■ Focused approach in Delhi has yielded results ■ Maintaining number 2 position in Delhi (largest Ad market for Radio industry) Building up loyal listenership base steadily across other stations of launch Mumbai (Launch: Jan 07) Mirchi Fever One Red City Big Hit Meow Mar 07) Q3 ■Q4* Source: RAM - All people 12+, Q4 data till 14th February'09 Bangalore (Launch: Kolkata (Launch: Jan 08) II HT Media 23#24Share % Became No. 1 in Mumbai 19.2 15.2 14.5 12.4 10.0 6.5 Wk 18 2.4 16.0 16.0 14.6 12.9 10.9 6.3 Wk 13-18 avg 2.6 Fever Red Mirchi Big City One Meow Fever Red Mirchi Big City One Meow Source: RAM - All people 12+, data for week ending 14th May '09 IHT Media 24#25Share % Acquiring No. 1 position in Bangalore 19.7 19.3 15.6 9.4 9.4 6.9 Wk 18 21.0 2.1 16.1 13.3 11.4 10.1 7.8 Wk 13-18 avg 2.6 Fever Big Mirchi One City S FM Indigo Big Mirchi Fever One City S FM Indigo Source: RAM - All people 12+, data for week ending 14th May '09 II HT Media 25#26HTML addresses a large & growing value pool through its portfolio of strong businesses ■ HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increase across mediums with the growth in consumption; thereby a strong outlook for the overall Media industry ■ HTML plays in ~50% of the overall media industry ■ HTML has a strong portfolio of businesses that are highly successful and few new ventures that are in the growth phase ■ Hindustan Times - English daily ■ Hindustan - Hindi daily ■ Mint - Business paper ■ Fever 104 - Radio ■ Digital - Portfolio of websites & mobile marketing ■ HTML is an attractive proposition to invest ■ The only company with a large English & Hindi footprint; having a strong brand recall across businesses ■ Sound financial model: strong financial performance over last 5 years ■ Diverse and professional management team ■ Partner of choice for global players IIHT Media 26#27Internet is imperative to the business for leveraging synergies ■Business landscape fast changing ■ Healthy on-going growth in Print, but slowly new media opportunities gaining importance ■ Internet fast emerging as a major media format; expected to increase approximately 10 times by 2013 ■HT Media recognizes this change ■ Leveraging the current leadership position in print to successfully create new growth engines to continuously enhance value. 1. 2. It leverages the existing print / classifieds relationships Includes jobs, matrimonial, real estate, auto and general classifieds 1. Innovation Classifieds & Web focused properties 2. Already made a Content Communities foray in 1. It leverages the thought leadership position for content 2. Includes news websites like 3. Hindustantimes.com, Livemint.com Other available spaces are websites on education, career planning, travel, entertainment etc 3. social networking Other available spaces are knowledge networking, gaming, photo sharing etc II HT Media 27#28Internet: strong foundation for growing portfolio. ■ In order to give more focus to Internet, a separate subsidiary Firefly started in ☐ 2007 ■ 100% subsidiary Dedicated to building brands and businesses in internet space ■ Rapid scale-up in operations; structured for growth through investments in employees and infrastructure Over 150 employees in 1 year; sales force of 100+ Over 20% employees from premier B-schools in India hindustantimes com livemint.com shine. " " Ranked amongst Ten best news websites in the world by Forbes.com in 2007 Ranked #1 in Technology by PC World India Web Awards in 2007 and 2008 Rapidly growing page views - 25 million page views per month Slew of interactive features - newsletters, news alerts, editorial blogs Business news site, designed by world renowned firm Garcia Media, USA Over 8 million page views per month with average time spend of ~3 minutes / visit More interactive content added through Live video feeds, radio and podcasts, blogs Fastest growing career portal : 2.2 million + registered users in 11 Months Superior technology & differentiated Product: Match Vs search ability, salary benchmarking tools DESI MARTINI.com India @ home Acquisition in 2007 Redesigning of the website underway IIHT Media 28#29Plan to tap huge value pool through classifieds portals Market size Rs. Crore 3,300 2,100 520 ■ Entered online job market in June 08 with a differentiated offering - shine ■ Shine - journey so far... Over 2.2 million profiles 15+ million page views and 2 million unique visitors per month 83% database is 2+ years experience; competition has 55% Average Salary - Rs.4.3 Lacs per annum; competition has Rs. 2.5 lacs 45% Post Graduates in the database; competition has 25% Jobs 770 Matrimonial 600 680 Real Estate [140] 30- 2008 2013 Source: IAMAI; HT analysis IIHT Media 29#30Online Jobs Shine.com - shine. Welcome to Shine! FIDK WIN PENACT GUARANTEED YEANS BALIVY Over 2.2M profiles 15+ million page views and 2 million unique users per month User engagement with site at high levels browsing 6+ pages per visit Average experience of 6+ years, with over 83% candidates in 2+ years experience slab Market reach up -now India's 4th largest career site* with over 20% unique candidates** *Alexa Rankings ✶✶ comScore Reports Both are International Internet traffic rating companies recognized by various agencies IIHT Media 30#31Shine is the most comprehensive job portal in India High Low Feature Job & Candidate Matching Capability Invisibility & Anonymity Recruitment Workflow Management Robustness of registration process Salary Survey functionality Communities Database Size Shine Naukri Monster Timesjobs Source: Competition benchmarking done by Diamond consultants IHT Media 31#32Business model of Shine Revenue Corporates ✓ Branding ✓ Hosted Solutions ✓Job Postings ✓ Database Access Placement Consultants Individuals ✓ Hosted Solutions ✓Job Postings Database Access Career Services Extensive Sales Support Corporate Retail 150+ People 8 Locations IHT Media 32#33Foray into mobile marketing and advertising with comprehensive set of services across mobile platform Mobile Marketing Activities: The use of the mobile channel for brand- building activities that raise awareness of a brand in mobile consumers minds Mobile Messaging On-pack promotions Mobile Blogging/ User Generated Content M-commerce Loyalty Clubs Location Based / Proximity vodafone Watch highlights of your favorite team LIVE on your mobile! ays 9 20 templates 17 templates Raulston 02/02/2007 Argos This product is in stack, to reserve it please reply to this message Raply Reject Hennessy Hennessy Art of Mixing Check the latest inde tracks and votel Listen and downloadi FREE Get a 50% discount at Steps Coffee... |139 5 templates 5 templates 3 templates 7 templates Mobile Advertising Activities: product or service WAP Banner Ads Mobile Search Advertising Mobile TV Ads/ Sponsored Video Branded WAP sites & Ad-funded Content dea cheveux resp end seants Google 10 templates 2 templates 1 template 1 template Tony mobile 1829 EII HT Media 33#34Joint Venture with Velti, a global provider of mobile marketing services, to provide an integrated offering ■ First large media company to enter in mobile marketing ■65:35 JV with Velti plc, a company listed in London ■ Velti plc is a leading global provider of mobile marketing services ■ Value to be derived from advertiser and not service providers ■Leverage on existing sales force of HTML and technology of Velti ■ Scheduled start of services in May 09 1) Planning Stage 2) Execution Stage 3) Reporting Stage Definition Identificati of objectives and budget on of marketing activities Refinement Executio of execution details n of the campaig n Monitoring of campaign performance Adjustment of campaign parameters, if necessary II HT Media 34#35HTML addresses a large & growing value pool through its portfolio of strong businesses ■ HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increase across mediums with the growth in consumption; thereby a strong outlook for the overall Media industry ■ HTML plays in ~50% of the overall media industry ■ HTML has a strong portfolio of businesses that are highly successful and few new ventures that are in the growth phase ■ Hindustan Times - English daily Hindustan Hindi daily - ■ Mint - Business paper ■ Fever 104 - Radio ■ Digital - Portfolio of websites & mobile marketing ■ HTML is an attractive proposition to invest ■ The only company with a large English & Hindi footprint; having a strong brand recall across businesses ■ Sound financial model: strong financial performance over last 5 years ■ Diverse and professional management team ■ Partner of choice for global players II HT Media 35#36Attractive long term financial model ☐ Rapid revenue growth: FY04-FY09 Revenue CAGR of 26% 1 Steady growth in revenues - ■ Exploring new revenue options – Ad for Equity, Events ■ Diversification of revenue base; Hindi continues growth momentum 2 Combining growth with profit ■ EBITDA margin within range of 15-20%; growing for last 5 years ☐ Rapid growth in PAT: FY04-FY08 PAT CAGR of more than 100% ■ Effective hedging strategy and inventory management to counter exchange rate risk and input price fluctuations ■ Strategic investments for long term leverage 3 Strong Balance sheet & Cash flow ☐ ■ ~Rs. 255 Cr of cash as at March 2009 Significantly low level of debt (Rs. ~208 Cr as at March 2009); D/E ratio of ~20% ■ Significant investments already done; leverage to kick in ■ Focus on financial discipline & optimum resource utilization IIHT Media 36#37Historical Performance - Revenues Rs. Crores 1,400 □ Revenue 1,200 1,000 CAGR - 26% 800 600 400 421 200 * FY 04 for 9 months 637 841 1227 1080 1336 FY 04* FY 05 FY 06 FY 07 FY 08 FY 09 II HT Media 37#38Historical Performance - EBITDA Rs. Crores 300 EBITDA 250 -EBITDA % 200 150 100 50 50 CAGR - 62% 4.7% 20 84 13.2% 136 16.2% 25% 264 4% 21.5% 231 20% 220 16.2% 15% 10% 5% 0 0% FY 04* FY 05 FY 06 FY 07 FY 08 FY 09 * FY 04 for 9 months % of revenues IIHT Media 38#39Historical Performance - PAT 160 145 14% 10% 140 OPAT 12% 11.8% -PAT% 120 115 0.7% Rs. Crores 100 CAGR - 26% 00 80 60 60 40 40 20 20 34 5.3% 6.2% 85 8% 6.3% 6% % of revenues 4% 2% 0 FY-34 FY 05 FY 06 FY 07 FY 08 FY 09 -20 0.0% 0% * FY 04 for 9 months, All PAT figures before extra-ordinary items IIHT Media 39#40Historical Performance - Cash flow 160 140 120 Rs. Crores 100 80 00 Cash from operations -Investments 60 60 160 40 40 20 20 79 116 53 53 121 400 144 350 339 135 300 250 200 Rs. Crores 184 149 150 100 50 0 FY-24* FY 05 FY 06 FY 07 FY 08 EY 09 -10 -20 * FY 04 for 9 months IIHT Media 40#41Recent quarter update: Q4 FY 2009 Steady Financial Performance despite headwinds ■ Revenues grows to Rs. 337 Cr; 6% growth with respect to Q4 FY 08; ■ Increase in DAVP contribution ■ Hindustan continues its momentum of 30%+ growth Initiatives undertaken to counter headwinds ■ EBITDA margin of 15% despite high newsprint costs, unfavorable foreign exchange rates and slowdown in advertising ■ Debt, net of cash at Rs. 208 Cr as at 31 March 2009; Debt to Equity ratio of 0.2 ■ Revenue enhancement ■ Increase in cover prices ■ Enhanced focus on tapping alternative sources of revenue like events management ■ Cost optimization ■ Rationalization of newsprint consumption ■ Overheads and manpower optimization HIIHT Media 41#42Headwinds faced in FY 2009 are fading away Headwinds in FY 2009 • Rising international newsprint costs . High investment in Hindustan • Profitability under pressure due to new businesses • Mint • Radio . • Internet • Mumbai • Overall advertising market in • Metro cities under pressure Higher costs due to inefficiencies Going forward International newsprint prices are down by -30% • Hindustan set to grow and double its contribution • Investments in new businesses have started yielding results • Radio breakeven in Q4, FY 2009 • Mint expected to breakeven by end of FY 2010 • Mumbai & Internet on the path to attain breakeven in next 2-3 years • With the growth in Hindustan, dependence on metro cities is coming down • Cost optimization measures to yield results IIHT Media 42#43We have built successful partnerships with world class organizations THE WALL STREET JOURNAL. mint Virgin Fever 104 FM ■ ■ Business Paper in partnership with Wall Street Journal; exclusive agreement with WSJ to publish Journal-branded news and information in India ■ 2nd largest circulation and 2nd highest readership among business papers within one year of launch (2007) ■ FM Radio channel in collaboration with Virgin; Virgin provides functional expertise whereas HT brings in media support and local expertise Acquiring polar position in key markets ■ Internet job portal with RedMatch as technology partner redmatch shine. ■ Launched in 2008, database of 1.9 million + in 10 months of launch velti firefly eVENTURES ■ 65:35 JV signed in Q3 FY 09 to provide mobile marketing services ■ Scheduled start of services in April 09 Hubert Burda EIIHT Media ■ Started in 2008 in a joint venture with Hubert Burda Media ■ The only high end pre-press capability in India, the first partnership of a major media company in India IIHT Media 43#44Thank You IHT Media 44