Music Broadcast Limited Investor Presentation July 2017 Safe - PDF document

Music Broadcast Limited Investor Presentation July 2017

Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Music Broadcast Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections 2

Q1FY18 Performance

Achievements for the Quarter Q1FY18 Financial  Radio City increased its market share by ~2% in Q1FY18 in terms of Highlights volume as compared to Q1FY17 “ Great Place To Work” Study  Continues to be in top 50 companies for the 6 th year  Consistent Revenue  No 1 rank amongst M&E companies in GPTW in 2017, 2015 & 2014 growth of 12% (yoy)  EBITDA growth of 16% (yoy) with CRISIL Ratings margin of 32%,  Re- affirmed its “CRISIL AA/Stable” rating on Rs. 200 Crs NCD of the Company despite the launch of  Rated for the First Time with A1+ on Short Term Loans New Stations  PAT growth of 42% New Initiatives (yoy)  Launched Gig City Season 2 supported by talented artists  RadioCity.in with 43 radio stations in 8 languages and 2,700+ podcasts  Radio City’s curated music available to subscribers on Apple Music 4

Key Highlights for the Quarter Revenues EBITDA PAT In Rs. Crs In Rs. Crs In Rs. Crs +12% +16% +42% 70 22 11 63 19 8 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Q1FY17 Q1FY18 11 new stations EBITDA Margin PAT Margin of operational for of 32% 15% entire quarter 5

Utilizations in Line with Annual Guidance 39 11 Average Inventory 28 5 out of 11 New Availability is Stations: >30% utilization 15 min for 18 hrs. Legacy Stations Phase III Stations Total Stations Rate Hike in 12 out of 28 Legacy Stations Utilization 70-80% 25-35% 65-75% Our Strategy of Profitable Growth with maintaining Lowest Cost Per Million is playing out 6

Market Share Movement Radio City gained 2% in terms of Industry de-grew by 5%, with Radio market share and now has a share of City registering a growth of 4% 22% for Q1FY18 Volume Growth Volume Share 10% Operators Q1 FY17 Q1 FY18 Change 4% 5% 0% 2% Radio City 20% 22% -5% -5% -7% -10% 3% Peer 1 23% 20% -15% -20% -18% Flat Peer 2 11% 11% Radio City Peer 1 Peer 2 Industry Source: Aircheck 15 Markets 7

Profit and Loss – Quarterly In Rs. Crs Q1FY18 Q1FY17 YoY Q4FY17 QoQ FY17 Revenue 70.3 62.8 12% 66.6 6% 271.4 Licenses Fees 5.2 4.7 4.8 19.2 Employee Expenses 17.1 15.5 17.0 65.1 Other Expenses 25.8 23.5 28.1 95.9 EBITDA 22.2 19.1 16% 16.6 34% 91.2 EBITDA Margin 31.5% 30.5% 24.9% 33.6% Other Income 4.7 1.1 1.7 4.4 Depreciation/Amortization 6.4 4.5 5.6 19.7 EBIT 20.4 15.7 30% 12.7 62% 76.0 EBIT Margin 29.1% 25.0% 19.0% 28.0% Finance costs 3.9 4.1 5.9 19.0 PBT 16.6 11.6 6.8 57.0 Tax 5.7 4.0 2.3 20.3 PAT 10.8 7.6 42% 4.5 141% 36.7 PAT Margin 15.4% 12.1% 6.8% 13.5% Other Comprehensive Income 0.0 0.0 -0.4 -1.1 Total Comprehensive Income 10.8 7.6 42% 4.1 162% 35.5 8

Radio City Rag Rag mein LEADERSHIP 9

MBL at a Glance Over 15 Years of Experience in the Radio Industry 11 Cities acquired in Phase III 1 st Private FM Radio Broadcaster in India ▪ ▪ Presence in 12 out of the top 15 cities of India by population 52.5 mn Listenership in 23 ▪ Presence in the Internet Radio Space with radiocity.in – 43 web radio stations in 8 languages Cities ▪ Present in Android and iOS under an app called “Radio City” and Radio City India Ranked 1 st in the Media Industry and 2 nd in Best Place for Hiring and Welcoming ▪ 39 Radio Stations categories by Great Place to Work in 2015 ▪ Continues to be the Best Media Company and amongst the Top 50 great places to work for in 2017 12 Of the Top 15 cities ▪ Ranked 1 in Mumbai, Bengaluru and Delhi under “Top of Mind” brand recall for covered previous months Source: AZ Research Report, March 2017 (23 Markets), Census 2011, Great Place to Work (GPTW) 10 ^ Radio Mantra Stations has been transferred to MBL pursuant to the Scheme of Arrangement

Rag Rag mein LEADERSHIP Industry Product Organizational Leadership Leadership Leadership Internal Operational Systems & HR Leadership Position in Large Markets Right Shows : Right Time 1. 1. 1. Received 31 awards in 2016 and 40 Radio City - No. 1 Station by AZ Research New Initiatives 2. 2. awards and counting in 2017 2. 3. Right Markets : Right Price Leadership in Mumbai and Bengaluru 3. Great Place to Work - Ranked 1* in Media Industry 3. 4. Leadership Advertising Volume 4. New Age Digital Media * In 2014, 2015 & 2017 11

Industry Leadership

Leadership Position in Large Markets Listenership Across Listenership in Mumbai Listenership in Delhi Listenership in Bengaluru Markets In mn In mn In mn In mn 52.5 8.4 9.2 4.7 8.2 42.1 3.7 7.2 6.4 5.9 3.2 5.5 5.8 5.5 2.7 27.2 2.3 22.7 15.1 2.0 9.1 Radio City Radio Mirchi Big FM Red FM Fever Radio One Radio City Big FM Radio Mirchi Fever Radio One Radio City Radio Mirchi Red FM Big FM Fever Radio City Big FM Radio Mirchi Fever Radio One Radio City has been Ranked 1 in Mumbai, Bengaluru and Delhi in terms of number of listeners and have a total number of 52.5 million listeners across all 23 cities covered by AZ Research Source: AZ Research Report, March 2017 (23 Markets) 13

Leadership in Mumbai and Bengaluru Listenership Market Share Data Mumbai Bengaluru 20 30 16 25 20 12 % Share % Share 15 8 10 4 5 0 0 Year 2013 Year 2014 Year 2015 Year 2016 YTD* Year 2013 Year 2014 Year 2015 Year 2016 YTD* Mirchi One Radio City Red Big Mirchi One Radio City Big Fever Ishq Nasha Redtro Indigo Fever Mirchi 95 Others Amongst the highest average listenership share percentage in Mumbai and Bengaluru Listenership market share represents the percentage of the total radio listeners that are tuned to a particular station in a given time period. It depends both on the number of individuals who are exposed to the station and the average amount of time spent listening to the station over a defined time period Source: RAM Data (4 Markets) 14 *Jan – June 2017

Leadership in Advertisement Volume For FY17 Advertising Volume 12.1% Real Estate Government BFSI 6 Year CAGR (FY11-17) 9.7% 9.0% 9.1% 8.3% 4.0% I 8% 10% 16% N D Radiocity Radio Big FM Red/S FM Others Industry U Mirchi mn Seconds (FY17) S T Others R Retail E-commerce Y 34.2 63.2 94.6 342.3 74.9 75.4 53% 7% 6% Radio City has seen a 6 year CAGR of ~12.1% compared to industry CAGR of 9.1% in Advertising Volume MBL has # 4,634 Advertisers in FY17 Source: AirCheck Data (14 Markets) 15

Product Leadership