Entertainment Network (India) Ltd — Investor Presentation 2021

Dec 9, 2021

entertainment network (India) limited

Corporate Office : 14[th] Floor, Trade World, D-Wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, India. Tel: 022 6753 6983.

December 9, 2021

BSE Limited, National Stock Exchange of India Rotunda Building, P. J. Towers, Limited, Dalal Street, Fort, Mumbai: 400001. Exchange Plaza, Bandra Kurla Complex, Bandra- (East), Mumbai – 400051.

BSE Scrip Code: 532700/ Symbol: ENIL

Sub: Presentation to ICICI Prudential Mutual Fund and Right Horizon Minerva Fund

Dear Sir/ Madam,

Further to the communication of yesterday, please find attached herewith the updated presentation.

Thanking you,

For Entertainment Network (India) Limited

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Mehul Shah EVP - Compliance & Company Secretary (FCS no- F5839)

Encl: a/a

Registered Office : ‘A’ Wing, 4[th] Floor, Matulya Centre, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, India. Tel: 022 6662 0600. Fax: 022 6661 5030. E-mail: mehul.shah@timesgroup.com www.enil.co.in Corporate Identity Number: L92140MH1999PLC120516

Stronger post Covid Update on FY21 and H1, FY22

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1

One: FM Radio Volumes back, pricing soon

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2

As pandemic waxed and waned, so did our revenues

Rs crs

Possible revenue path, had 2[nd] wave not struck

H1FY21 numbers are without one-time commission from ADMC

Both FCT and non-FCT revenues fell

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3

Radio hit the hardest, TV/digital least….

		Radio	Print	OOH	TV	Digital
	BTL - On- ground	Very High	Low	Low	Low	Low
	ATL – Retail ads (Shops)	Very High	Very High	Low	Low	Low
	ATL – Brand ads (Corp)	High	High	Very High	Low	Low
	Traffic/ Logistics	Very High	Very High	Very High	Low	Low
	Subscription/ distribution	NA	High	NA	Low	Gain

• When shops are shut, radio ads just stop • Metros hit harder than smaller towns….

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4

This shows up in the results….

Sl. No.	% Revenue Growth(FY21 over FY20)	% Revenue Growth(FY21 over FY20)	% Revenue Growth(FY21 over FY20)	% Revenue Growth(FY21 over FY20)
	Year	Radio	Print	TV
1	ENIL	(50.6%)
2	Radio City	(48.5%)
3	HT Media	(63.4%)	(46.6%)
4	HMVL(Hindi)		(32.2%)
5	Jagran Prakashan		(36.5%)
6	DB Corp	(40.3%)	(31.7%)
7	NDTV			(11.2%)
8	Zeel			(8.6%)
9	TV 18			(13.1%)
10	SUN TV			(8.4%)
11	TV TodayNetwork	(61.4%)	(89.2%)	(5.0%)

• Radio companies hit the most; followed by print. TV companies hit the least

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Non-FCT fall led by on-ground….

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Path had
2 [nd] wave
not
struck
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Path on-ground should take after Covid ends

Others includes other operating income

Core solutions are on a strong footing

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Digital has grown smartly….

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Path had
2 [nd] wave
not
struck
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Others includes other operating income

As On-ground recovers, so will overall Solutions

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Volumes now > pre-pandemic levels

….pricing next

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Volumes vs Pricing
18,000 60.0%
16,000
50.0%
14,000
12,000 40.0%
10,000
30.0%
8,000
6,000 20.0%
4,000
10.0%
2,000
- 0.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22
Gross ER Capacity Utilisation (%)
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We expect price recovery by Diwali next year

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Q2 FY22 GOLLY

8

Mirchi maintains volume market share…

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…and retains pricing premium over competition

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9

Cost control – now lean and mean….

Rs crs

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-94crs
+24crs
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• Opportunity for higher EBITDA margins with future revenue growth

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Radio Way-forward

• Whenever the economy is sluggish…..but shops are open….radio grows fast

• Why? Because advertisers spend more on promotions. No medium like radio for promotions

We expect full recovery in radio in FY23 (back to FY20 levels)

• We expect radio to grow at 5-8% CAGR from FY23 to FY25

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Two: Solutions Share rising, margins rising

Total Addressable Market in Solutions : Rs 15,000 crs – 20% of total advertising spends

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What is our Solutions product?

• No marketing/communications challenge can be solved by any one medium.

• A strong solution needs multiple media vehicles

• Marketers don’t have the same challenge all over India

“ – - Solutions must be hyper local”. A different solution for Coimbatore than for Vadodara

• Marketers would love to deal with someone who can design

and execute solutions

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Who are our competitors?

• - For digital first solutions

Small cities, small clients

– Google/Fb

– SM influencer agencies/Digital media agencies

– Telco aggregators (InMobi)

• For general solutions

Major strength

– Some small TV channels (they mostly do AFPs)/some event companies

• Addressable market in General solutions: Rs 1000 crores+

– Fast growing; depends on how we develop it.

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Can we scale up Solutions?

• Challenges for scaling up:

– Most of the solutions we design are bespoke solutions (Creative limitation)

– Reaching lacs of clients (sales team limitation)

– Execution of solutions (Execution limitation)

• Our approach to scaling up:

– Building an online repository of ideas ever created (sold or unsold)

– Building a marketing platform where advertisers can get preliminary self-help served by an ML/AI algorithm

• Selling more digital/traditional media, and less on-ground solutions

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Share of Solutions revenue

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Non FCT to become 50% by FY25

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Solutions margins are rising….

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• Margins rising – reducing use of on-ground and better commercial negotiations

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Within Solutions, share of Digital is rising

60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY25 Solutions Digital

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25%
25%
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Examples of Solutions

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Friendship Jam

Client Brief To increase user engagement on the app and user acquisition

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Friendship Jam

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Mirchi Idea

Due to corona, people were increasingly turning to digital platforms. Seeing this as an opportunity, Mirchi created an emotional connect for people by creating friendship bonds between friends via jamming on Smule. This lead to an increase in engagement and acquisition

Friendship Jam (Video)

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Wazirx (To the moon)

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Client Brief

To build brand awareness for WazirX as India’s leading cryptocurrency exchange as well as awareness for Bitcoin among India’s new generation of technocrats.

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Wazirx (To the moon)

Mirchi Idea

An informative approach infused with a dose of crypto-lingo: WazirX takes your cryptoinvestments To The Moon!. A multi-media campaign, composed of a radio arm that educated listeners and an influencer-led activity that generated brand engagement.

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Wazirx (Video)

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Solutions Client testimonials

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Smule – Multi year and Multi property association

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Client
Speak
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100 Pipers – Play for a cause – “We create Records”

Client Speaks

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The record is featured in the 2020–22 edition of Limca Book of Records

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Gulf Oil - Our Work is featured in various forums and win awards

• Infotaintment based content to create awareness of the pandemic

• To promote the helpline number that Gulf has

• created

• To provide information on how to stay safe in their work environment

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Mirchi bags three awards at the ACEF Global
Customer Engagement Forum and Awards
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Client
Speaks
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Mother Dairy – We deliver high engaging content solutions

Client Speaks

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Three: Digital Digital Mirchi > Radio Mirchi

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A strong bouquet of digital content….

• Online radios

Digital

• Original podcasts

• Original videos/YouTube

• Digital solutions

• Social media/influencers

• All our digital products are built on a) strong brand b) content capabilities c) creative team strength

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Digital has grown despite the pandemic….

				Rs. In lacs	Rs. In lacs
	H1 FY20	H2 FY20	H1 FY21	H2 FY21	H1 FY22
Online radios	16.7	7.4	1.6	2.1	3.5
Original Podcasts	-	-	9.4	-	-
You Tube & Origvideos	44.3	480.5	138.8	247.0	211.1
Digital solutions & SM	784.7	1,025.2	907.5	1,843.2	900.3
Total	845.7	1,513.1	1,057.3	2,092.3	1,114.9
			32% 32%↑

• H1 digital 32% higher than pre-pandemic….

• Digital solutions, SM and videos driving digital revenues.

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Digital to contribute most to revenue growth from FY24….

• Mirchi platform and Mirchi’s digital content will both drive revenue growth.

• Mirchi platform – we are aiming to get 40-50 million MAUs by FY24

• In content, both solutions and SM will continue to grow. Original Podcasts represents a great area of opportunity

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Digital – Online Radios

18 web radios

• 4 million MAU

521 mn streams

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Low on revenues….but huge potential ahead

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Podcasts coming soon on Mirchi platform

• Platform launch by 1[st] April 2022

• 125/80/60 million podcast MAU in the US/China/India.

• 200 million expected in India by 2024.

• $1.3 billion revenues in the US; $200 million in China. Negligible in India. Revenues growing 30%+ CAGR

• Advertising, subscription, virtual gifting, tipping….several revenue models

• Young, urban, upmarket listeners

• Stories, entertainment, wellness, sports, finance, etc etc

• Great non-music audio content for the first time

Podcasts – huge growth area for Mirchi

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Podcast – valuation indicators

• Pocket FM - >$325 million in December 2021

• Pratilipi - $265 million in July 2021

• Kuku FM - $15.5 million in early 2020

• Awaaz – Approx $20 million recently

Podcasts – attracting huge investor interest

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YouTube (YT) – Mirchi, a strong MCN….

13 channels 13 mn subs 68 mn views/ Month Theme and Language based

You Tube channels key to hosting Original Content

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Filmy Mirchi the top Bollywood channel

CHANNEL

YT SUBS

1. Filmy Mirchi :

2. Viral Bollywood:

6.2 Mn 4.9 Mn

1. Zoom : 4. Bollywood Now: 5. The Quint 6. Bollywood Hungama: 7. Pink Villa: 8. Film Companion: 9. Miss Malini:

4.7 Mn

4.6 Mn 3.2 Mn 2.6 Mn 2.1 Mn 1.3 Mn 0.7 Mn

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Top independent YT entertainment channels

Channel	Subscribers
TVF	10.4 million
FilterCopy	9.1 million
Timeliners	6.7 million
Filmi Mirchi	6.2 million
Screen Patti	5.4 million
DiceMedia	4.8million
Girlyapa	4.5million
Zoom	4.4 million
RedFM	4.3million
MTV India	4.3million
Mirchi Murga	3.2 million
BeingIndian	3.0million
Scoop Whoop	2.4 million

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Original video content

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Licensing
Brand
integration
Original
content
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Content across Languages Celebrity Shows

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Multi-lingual Original Shows

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PunjabiPunjabi
Marathi
Marathi Gujarati
42
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Multi-lingual Original Shows

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Punjabi
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Tamil
43
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Multi-Platform Celebrity Shows What Women Want - Season 3

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15mn YouTube views; 4mn+ Social Media Views

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Multi-Platform Celebrity Shows

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Digital solutions

Media dark mkts Mobile tech Social Media RJs as influencers Client solutions

Unique expertise in technology + content

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Mirchi’s Social Media Strength

Our talent (RJs) continue to gain strength

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Growth due to a lot of RJ videos being shared on the platform

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Star Jocks on Web Radio

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Total SM Followers: 560K+

Total SM Followers: 315K+

Shruti

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Total SM Total SM Followers: Followers: 350K+ 2M+

Sana

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Rochie

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Sayema
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3.2Mn+ YT subs 1212+ videos 14Mn views/ Month

2.2Mn followers on Twitter 4L Monthly engagement 86 RJ as SM influencers

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13.0 Mn+ subscribers to Mirchi

13 Channels

68Mn Views/ Month

18 Digital Radio Stations 45+ mins avg TSL 4 Mn unique visitors

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Mirchi Digital Monthly Active Users 77Mn (Est)

(FM radio: ≈55 mn )

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25Mn fans on facebook

3.7Mn Monthly engagement 137 RJs as SM Influencers 10 Regional pages

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9.2 Mn fans on Insta 4 Mn Monthly engagement 167+ RJ as SM Influencers 10 Regional pages

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180+ RJ’s as popular influencers. across regions and language 49

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Four: International Growing rapidly

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North America, GCC big for Mirchi….

	Country	City	Launch Date
Current Business Operations	USA	New Jersey	January2019
		San Francisco	July 2021
	Qatar	Doha	March 2021
	UAE	Abu Dhabi	March 2021
	Bahrain	Bahrain	May2021
Future Expansion	USA – Dallas, Canada, Australia, NZ and UK

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Five: Mirchi platform Coming soon!

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Mirchi.in

soon : Launching own web and app platforms

• Audio, video, text stories, all in the area of

entertainment, executed in typical Mirchi style!

• Streaming FM stations in international markets. Limited music products within India.

• Content produced by inhouse talent, and external professionals.

• Strong revenue monetization using Solutions engine

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Why Mirchi.in?

• So far, we have been a digital content company, putting our content on external platforms

• Examples: our videos on YT. Our radios on Gaana. Our original shows on MX Player etc.

• :

• Disadvantages

• No user data. Hence cannot cross-sell new products. Nor can we tweak our products to enhance reach/engagement.

– We don’t own any digital inventory. So monetization is weak

• External platforms take commissions on ads they raise

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Six: Digital commerce Details later

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Seven: investment in digital start-ups in “adjunct” areas Details later

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The new Mirchi….

Digital Platform Digital CommerceDigital content Radio Solutions Digital start-ups International

Today, Digital is 11-12% of our revenues; Target 25% by FY25

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Brand Mirchi is our biggest strength….

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300+
Creative.
63 cities – 15
350+
sales languages.
people
Music/ No other player
10K+
Film in the
clients
fraternity
market has
Brand
such
Mirchi
capabilities
inhouse
Financial
63 cities
muscle
#1 in radio
for 20
years
58
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What differentiates us is Solutions….

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Radio
Digital
partners Online
(Gaana, radios
Google)
SOLU
TIONS
Original Live,
Podcasts Catalyst
Original
Videos
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Solutions allows us to monetize products and ideas that may not sell by themselves, example podcasts and online radios. We leverage our 10K+ client relationships. Catalyst a game changer

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Thanks

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