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TRANSCRIPT
Investor MeetJanuary 8, 2007
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Some of the statements made in this presentation are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the directors and management of Zee News Limited (ZNL) about its business and the industry and markets in which it operates.
These forward-looking statements include, without limitation, statements relating to revenues and earnings. The words “believe”, “anticipate”, “expect”, “estimate”, “intend”, “project” and similar expressions are also intended to identify forward-looking statements.
These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of ZNL and are difficult to predict. Consequently, actual results could differ materially from those expressed or forecast in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks. ZNL does not undertake to update these forward-looking statements to reflect events or circumstances that may arise after publication.
Disclaimer
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Presentation flow• Introducing Zee News Limited• Indian TV industry overview• Business performance• Financial performance• Business strategy
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Introducing ZNL
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Who we areLargest news and regional channel network in India in terms of reach
Power of the “Zee” brand
Diversified revenue streams across linguistic markets
Robust revenues from subscription … majority are pay-channels
Revenue* of Rs. 1.5 bn in eight month period ending November 2006
Over 1,000 employees
* As per audited financials for eight months upto November 2006
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Our productsZee Marathi genre leader in Maharashtra
Zee News strong #2 in North and in Metros
Zee Bangla strong #2 in West Bengal and gaining ground
24 Ghanta strong #2 in Bangla news genre within 6 months of launch
Aim to replicate regional successes in South India
Source: TAM, Oct – Dec 06
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Mission
Inform. Entertain.Empower.
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How ZNL was formedShareholding Pattern *
FIIs25%
Promoters54%
Others9%
Mutual Funds12%
Demerger of news and regional business undertaking from ZTL
Appointed date of demerger March 31, 2006
Listed on BSE and NSE, trading starts on 10th January
* Data on Listing Date
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First Zee News
bulletin started
Zee News morning and
evening bulletin started
Zee News becomes first 24 hour Hindi news channel
Zee Bangla, Zee Gujarati, Zee Marathi & Zee Punjabi launched
Zee Telugu launched
Zee Kannada & 24 Ghanta
launched
Zee 24 Taas – the
first 24 hour
Marathi news
channel slated for
launch
1993 1994 1999 2005 2006 2007
Milestones
Launch of most channels happened as part of Zee Telefilms Limited
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Subscription25%
Advertising72%
Others3%
Business modelFocused on linguistic markets through news and entertainment, which is ~40% of viewership#.
Adv. & Subscription are key sources of revenue
8 out of 9 are pay channels
Syndication of content
# TAM Data All India, * Data for eight months upto November 2006
Revenue Contribution *
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Indian TV industry overview
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Source: NRS 2006; ALL INDIA HH
(1%)
2622
9
16
61 1
27
13
1 3
26
55
29
5
18
27
54
0
10
20
30
40
50
60
70
80
Press (Pub-AIR)
TV (Atleast 1/Wk)
TV C&S (Atleast 1/Wk)
Radio (Atleast 1/Wk)
Radio FM(At least1/Wk)
Radio AM(At least1/Wk)
Cinema(Atleast
1/Month)
Internet(At least1/Wk)
Mobile(Access
Feat. 1/wk)
Rea
ch In
%
Yr 2005 Yr 2006(2% loss)
(12%)
(22%)
(46%) (13%)
(25% loss)(25%)
(150%)
C&S TV a large and growing segment
Media reach comparison
(3%)
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TV industry revenue trends
149,000
488,000
61,000
123,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2006 2011
Rs
Mill
ion
TV AdvertisingTV Subscription
Future ready
Source Industry Estimates
29%
71%
20%
80%
15% CAGR
27% CAGR
10,000
140,000
61,000
123,000
0
50,000
100,000
150,000
200,000
250,000
300,000
2006 2011R
s M
illio
n
TV AdvertisingTV Subscription
86%
14%
47%
53%
15% CAGR
70% CAGR
Broadcasters share of revenueRevenue as per consumer spend
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Adv. revenues in C&S marketsTotal advertising on cable & satellite television Rs 61.0 billion
Current addressable market in which ZNL would operate Rs 22.5 billion
Current addressable market in which ZNL has operations Rs 9.0 billion (Existing businesses)
Current addressable market in which ZNL has added operations Rs 5.0 billion (New initiatives)
*Source Industry Estimates
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Source TAM 2006 (JAN TO DEC 23rd 06 ;HSM; excluding South channels
4.68
4.12
1.92
1.251.09
0
1
2
3
4
5
ETV ZNL TV TODAY NDTV TV 18
All C
hann
el S
hare
%
Network market share
Immense competitive advantage in HSM market
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Business Performance News channels
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Zee News
Total News Market estimated at Rs 5.4 bn
Hindi market is Rs 4.2 bn
Zee News is the only Hindi News pay channel
Provides content for international markets
Source TAM OCT – DEC 23rd 06CS 4+; MKTS-HSM
Zee News14%
India TV9%
IBN 78%
Star News19%
Sahara National7%
Janmat2%
TEZ5%
Aaj Tak20%
DD News3%
NDTV India13%
Channel share in Hindi news
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Zee News in the leading pack
SOURCE TAM OCT – DEC 23rd 06SEC ABC M 15-54;; MKTS-4 METRO & NORTH
Share in metros Share in North
Zee News
Aaj Tak20%
NDTV India12%
DD News2%
India TV10%
Star News18%
Janmat2%
Sahara National6%
IBN 78%
TEZ4%
Zee News18%
Aaj Tak22%
Zee News20%
NDTV India12%
DD News2%
India TV7%
Star News20%
Janmat2%
Sahara National5%
TEZ5%
IBN 75%
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Total Market estimated at Rs 1.4 billion24 Ghanta strong # 2 despite being a new channel24 Ghanta consistently growing its viewership share
SOURCE TAM OCT – DEC 23rd ‘06CS 4+; MKTS-KOL + WB SMALL
15.430.7 30.7
53.0
42.7 45.2
12.6 9.7 8.9
19 17 15.2
0102030405060708090
100
APR-JUN;06 JUL-SEP;06 OCT-DEC;06-TILLNOW
Shar
e %
Kolkata TV
Tara NewzStar Ananda
24 Ghanta TV
24 Ghanta TV30.7%
Star Ananda45.2%
Tara Newz8.9%
Kolkata TV15.2%
Quarterly trend
Channel share in West Bengal
24 Ghanta
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SOURCE TAM OCT-23RD DEC ‘06CS 4+; MKTS-4 METRO
First Hindi Business news channel
No 1 in commodity news
Only pay channel in the segment
Need to refine business strategy
Zee Business
Zee Business16.3%
Awaaz28.6%
CNBC TV1832.7%
NDTV Profit22.4%
Channel share
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Business PerformanceRegional entertainment channels
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SOURCE TAM OCT – DEC 23rd 06SEC CS 4+; MKTS-MAHARASTRA
Total market estimated at Rs 900 million
Zee Marathi is # 1 in Marathi genre
Consistently in top 5 among all channels in Mumbai and Maharashtra
Only pay channel in the segment
33.641.4 43.1 41.3 46.5
48.844.4 44.3 45.4
43.2
17.6 14.1 12.6 13.3 10.2
0
10
20
30
40
50
60
70
80
90
100
OCT-DEC;05 JAN-MAR;06 APR-JUN;06 JUL-SEP;06 OCT-DEC;06 - TILLNOW
Sh
are
%
DD10 SahyadriETV MarathiZee Marathi
Channel share In Maharashtra
Quarterly trend
Zee Marathi
Zee Marathi
46.5%
ETV Marathi
43.2%
DD10 Sahyadri
10.2%
Channel share in Maharashtra
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14.5 13.9 16.425.0 28.0
62.1 63.2 59.254.8 53.1
6.9 5.1 6.35.0 6.2
15.8 17.5 17.7 15 12.60.6 0.4 0.4 0.2 0.2
0
10
20
30
40
50
60
70
80
90
100
OCT-DEC;05 JAN-MAR;06 APR-JUN;06 JUL-SEP;06 OCT-DEC;06
Shar
e %
Bangla Akhon
Aakaash (Bangla)
DD7 Bangla
ETV Bangla
Zee Bangla
SOURCE TAM OCT – DEC ’23rd 06CS 4+; MKTS-KOL+WB SMALL
Total market estimated at Rs 1.4 billionOnly pay channel in the segmentStrong # 2 in West BengalZee Bangla consistently growing its viewership
Quarterly trend
Zee Bangla28.0%
ETV Bangla53.0%
DD7 Bangla6.2%
Bangla Akhon0.2% Aakaash (Bangla)
12.6%
Channel share in West Bengal
Zee Bangla
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17.0 15.6 20.8 22.0 27.2
62.1 62.862.9 59.6
57.2
20.9 21.6 16.3 18.4 15.6
0
10
20
30
40
50
60
70
80
90
100
OCT-DEC;05 JAN-MAR;06 APR-JUN;06 JUL-SEP;06 OCT-DEC;06 TILLNOW
Shar
e %
DD11 Gujarati
ETV Gujarati
Zee Gujarati
Total market estimated at Rs 200 million
Zee Gujarati registering gains, scope for further improvement
Provides content for international markets
Quarterly trend
SOURCE TAM OCT – DEC 23rd ‘06CS 4+; MKTS-GUJRAT
Zee Gujarati27.2%
ETV Gujarati57.2%
DD11 Gujarati15.6%
Channel share in Gujarat
Zee Gujarati
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Total market estimated at Rs 550 million
Zee Punjabi is the only pay channel in the segment
Provides content for international markets
SOURCE TAM OCT – DEC 23RD ‘06CS 4+; MKTS-PHCHP BOTH
Zee Punjabi
DD Punjabi10.8%
ETC Punjabi72.9%
Zee Punjabi16.3%
Channel share
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SOURCE TAM OCT – 23RD DEC ‘06CS 4+; MKTS-ANDHRA PRADESH
Total market estimated at Rs 3.5 billionTelugu language occupies 65% of the total viewership in APTarget to double market shareWill provide content for international markets
Zee Telugu
ETV2 News3.7%
DD8 Telugu1.7%
TV9 News4.6%
Zee Telugu4.1%
Teja TV21.0%
Eenadu TV19.0%
Maa Telugu9.1%
Gemini TV36.9%
Channel share
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*SOURCE TAM OCT – 23RD DEC ‘06SEC CS 4+; MKTS-KARNATAKA
Total market estimated at Rs 1.3 billionWill provide content for international marketsKannada language occupies 40% of the total viewership in KarnatakaTarget to reach 20% viewership share
Zee Kannada
DD9 Chandana (Kannada)
4.5%
Udaya TV50.3%Udaya
Varthegalu1.8%
Zee Kannada4.8%
ETV Kannada30.3%
U28.4%
Channel share
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Financial performance
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ZNL financialsIncome statementBalance Sheet
Income data for eight months upto November 2006
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Business strategy
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Business strategy
Build consumer preference
Expand revenue streams
Create a strong organisation
Deliver shareholder value
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Build consumer preference News content
Credibility Coverage – width, depth and speedContemporariness – look and feel
Entertainment contentInvolvement - build lasting relationshipEnjoyment - through innovative formats Interactivity
BrandCommunicationEvents
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Expand revenue streamsAdvertising revenues
Leverage strength to deliver to “national” and “local”
Deliver innovative solutions for brands
Subscription revenuesCompelling content
Communication
New revenue streamsInteractive content
Syndication in international markets
News portal, broadband and mobile
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Create a strong organisationFocus on people
Attract and reward the best professional talent
Encourage creativity
Empower
Create leadership talentExecutive coaching
Value based cultureEstablish strong corporate governance practices
Meritocracy based organisation
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Build shareholder valueFocus on growth
Strive to deliver a higher than industry growth
Explore inorganic growth opportunities
Margin expansionFocus on increasing subscription revenues
Create new revenue streams from content
Good corporate governanceTransparency
Professionalism
Accountability
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Questions & answers
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