Indian Print mediaIndianPrintmediaand

Newsprint

MohitJainExecutivePresident

TheTimesofIndiaGroupJune,2016

1

India:Brightspotintheglobaleconomy

GDP2016:$2.2trillion(atcurrentprices)

i i li ( )

57% Duetodomesticconsumption33% DuetoInvestment

h

80

73

846.9 7.3

2 6

6.37.5

Risingliteracyrate(%)GDPgrowthrates

6559

7368

3 8 3.7

0.61.5 2.2

2.5

3.5

1

1 1.72.2 2.6

Overall Rural Urban

2001 2011

3.8

Brazil Russia Japan EU UK US China India

2015 2016P

Source:KPMGIndianmediaoutlook2016 Source:GovernmentofIndia,Census2011

2

IndiahasthehighestGDPgrowthrateprojectionfor2016 Increasedliteracylevels Combinedwithincreasedincomepresentsahighlylucrativemarket

IndianMediaIndustry:Size&Growth

All fi i $ billiAllfiguresin$billion

Printmediashare

30% 27% 26% 26% 25% 23%29%

1416 15 16

1718

20

2010 2011 2012 2013 2014 2015 2016P

3

Source:KPMG

Mediaindustryexpectedtogrowto$20billionin2016 Shareofprintreducing

2016 vs 2015

IndianMediaIndustry:Size&Growth

20

2016vs 2015

Overall9%

Allfiguresin$billion

452

2 2 22

2215

3%

10%

8 9

44 4 4

44

5

10

9%

6 7 7 78 8

9

2010 2011 2012 2013 2014 2015 2016P

4

Source:KPMGTV Print Films Radio Music OOH AnimationandVFX Gaming DigitalAdvertising

Printmediarecordstheslowestgrowthamongmajorsectors

IndianMediaIndustry:Size&Growth

30

35

CAGR20152020

Overall13%

Allfiguresin$billion

63

3

3

20

25

7%

9%

16

45

55

6

22

3

10

15

7%

8 911

1214

16

5

2015 2016P 2017P 2018P 2019P 2020P

14%

5

Source:KPMG

TV Print Films Radio Music OOH AnimationandVFX Gaming DigitalAdvertising

Printmediarecordstheslowestgrowthamongmajorsectors

IndianMediaIndustry:Adrevenuegrowth

2016 2015

0 9

1.2

2016vs 2015

Overall10%

Allfiguresin$billion

29%

3 03.0

0.20.2

0.2 0.20.3

0.30.3

0.4

0.40.3 0.3

0.40.4

0.4

0.2

0.30.4 0.5

0.7

0.9

3%

13%

11%

2.83.0

2.8 2.82.9

3.0

11%

2.3 2.5 2.3 2.3 2.52.8 3.1

2010 2011 2012 2013 2014 2015 2016P

11%

6

Source:KPMG

TV Print Radio OOH DigitalAdvertising

Printisthesecondhighestmediumbyshare;Expectedtogrowonlyby3%

IndianMediaIndustry:Adrevenuegrowth

CAGR 20152020All fi i $ billi

3.812 0

14.0

CAGR2015 2020

Overall15%

Allfiguresin$billion

32%

4 30.5

0.6

0.6

0.5

0.6

0.7

1.7

2.3

3.0

8.0

10.0

12.0

8%

16%

12%

3.03.0

3.33.6

3.9

4.3

0.30.3

0.4

0.5

0.40.4

0.50.9

1.2

4.0

6.0

2.8 3.13.6 4.1

4.85.4

2.0

2015 2016P 2017P 2018P 2019P 2020P

14%

7

Source:KPMG

2015 2016P 2017P 2018P 2019P 2020P

TV Print Radio OOH DigitalAdvertising

Printisthesecondhighestmediumbyshare;Expectedtogrowonlyby3%

8

Print media market in 2015 : $4 5 billion

PrintMedia:India

Printmediamarketin2015:$4.5billion

511

28

86CirculationofregisteredNewspaperpublications(million)

PrintMediaRevenueMix2015(in%)Source:KPMG

264

450

1

11273

296 1

128( )

189,67%

94,33%Advertising

Circulation

Dailies Tri/biweeklies

Weeklies Others Total Categories 2013 2014 2015FMCG 12% 14% 15%

TopspendersonPrintmedia

weeklies

Source:RegistrarofNewspapersinIndia

FY14 FY15Auto 12% 12% 13%Education 10% 9% 10%Realestate/Home 9% 8% 7%Clothing 6% 6% 6%Ecommerce 1% 2% 4%Others 51% 49% 46%

9

Others 51% 49% 46%

Source:PitchMadisonAdvertisingreport2016

Numberofnewspapersincreasedvs PY;FMCGcontinuestobethetopspenderonPrintmediaads

PrintMedia:Readerhabits

Averageconsumptionofnewspaperperhour

90%UK

Internetpenetration

90%

87%

86%

UK

US

Japan

60%

53%

46%

Russia

Brazil

China

Source:KPMG

27%India

Source:IndiaontheGo KPMGMobileInternetVision2017

10 VeryhighreadershipcomparedtoUS/China Digitalpenetrationstillinthenascentstagesascomparedwithothermajoreconomies

PrintMedia:Lookingbeyondthemetrocities

70%ofIndiaspopulation

Governmentemphasisonimprovingruralincomes

Proruralunionbudget201617

NextwaveofdomesticconsumptiontocomefromRuralIndia

MajorindustrysectorslookingatgrowthfromRuralIndia

11

Vernacularmarketgrowth

LanguageNew

publicationsinFY14

Newpublicationsin

FY15Change

Hindi 2,295 2,349

Marathi 584 666Increasing Ad revenue growth in Hindi and vernacular ($ billion)

English 509 533

Gujarati 352 435

Kannada 325 302

Telugu 327 2891.3

1.3 1.3 1.41.4 1.5

IncreasingAdrevenuegrowthinHindiandvernacular($billion)

Urdu 301 270

Tamil 171 211

Others 778 762

Total 5,642 5,817 1.8 1.6 1.6 1 5 1.6 1.6

1.31.3 1.3 1.4 1.4 1.5

Source:RegistrarofNewspapersinIndia

1.5 1.6 1.6

2011 2012 2013 2014 2015 2016P

English Hindi VernacularSource:KPMG

12 StrongHindiandVernacularmarkets IncreaseinadspendonHindiandotherlanguages

Macrotrends

Traditionalprintadcategoriescontinuetospendonthemedium Printindustrysustainsgrowthamidgrowingpopularityofdigitalmedia

Digitalinfrastructurestillunderdevelopedandhaslowreach

IntheUS60%internetpenetrationwasatippingpointforprint;Indiaisat27%

Di it l Still l ll t id f th i t i d t Digital:Stillonlyasmallmeteoroidfortheprintindustry Yettoimpacthouseholdreadership

Classifiedadsmaynotimpactthetopline Regionalmarketsexpectedtoremainbuoyant Hyper localisation on the radar : Tweaks needed in business models Hyperlocalisationontheradar:Tweaksneededinbusinessmodels Managingcoststhroughconsolidationofadsales Advertisements:Goingbeyondthevisualappeal

13

Keydriversforfuture:Improvingreaderexperience,effectiveadplacements&userengagement

Innovation

TALKINGNEWSPAPERWINDOWS

Plowfolds&GateFolds

TRANSCLUCENTNEWSPAPER

SUPERPANORAMA

14

FLAPSWATERMARKS

Technologicaldisruptions

Engagementsspanningmultiplescreens Leveragingvirtualreality Augmentedreality QRcodes

S h Smartwatches Foldablenewspaper Blurringthelinebetweenphysicalanddigitalmedia Socialmediafornewsdelivery Mobileappsfornewsonthegopp g

15

16

India:Newsprintdemand

2.7

2.9

2 6

Consumptiontrends(milliontonnes)

1 41.6

1.81.9

2.12.0

2.1 2.1

2.7 2.6

47% 43% 43% 46% % 51% 49% 50% 48% 51%

53% 57% 57% 54% 53% 49% 51% 50% 52% 49% 47%

1.4

47% 43% 43% 46% 47% 51% 49% 50% 48% 51% 53%

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

Imported Domestic Total

S I di N i t M f t A i ti

17

ConsistentgrowthinNewsprintconsumption IncreaseinImports%duetofavourableprices

Source:IndianNewsprintManufacturersAssociationJanuary2016

Newsprintcost:Indiavs RestoftheworldSource:Financialstatements

41%33%

37%31%

33%

31%32%

28%

India Germany USA

ShareofrawmaterialsinTotal

cost

Shareofrawmaterialsinrevenue

201415 201516

ShareofrawmaterialsinTotalcost

Shareofrawmaterialsinrevenue

2014 2015

6% 6%6% 5%

ShareofrawmaterialsinTotalcost

Shareofrawmaterialsinrevenue

2014 20152014 15 2015 16 2014 2015 2014 2015

23%

16%21%

15%

ShareofrawmaterialsinTotalcost

Shareofrawmaterialsinrevenue

2014 2015

Singapore

18 Declineinrawmaterialcostsin201516partiallyduetocommoditycycle NewsprintisthelargestsinglecostdriverinIndia;Staff,SGA&distributioncostsarehigherinothermarkets

2014 2015

India:Newsprintprices

SNPW45gsm CFRIndia($perton)

625 620

600

575

540

525 525520

530

515 520

Jan14

Feb14

Mar14

Apr14

May14

Jun14

Jul1

4

Aug14

Sep14

Oct14

Nov

14

Dec14

Jan15

Feb15

Mar15

Apr15

May15

Jun15

Jul1

5

Aug15

Sep15

Oct15

Nov

15

Dec15

Jan16

Feb16

Mar16

Apr16

Source:RISI,Asianpulpandpapermonitor

19

Newsprintpricesonareboundcurve Pricetrendsfollowglobalpattern

Currencymovements

53.4558.45 60.89

64.03

67.02

30.98 31.8138.49

61.15

70.17

USDINR

12.23 10.89 10.00 11.30 11.79

6.30 6.19 6.14 6.22 6.53

USD INR

USDRUB

USD100KRW

USDCNY

1.33 1.37 USDAUD

USDEUR

0.97

1.041.11

0.78 0.75 0.750.90 0.89

1.00

1.031.10

1.28 1.33

USDEUR

USDCAD

2012 2013 2014 2015 2016YTD

USDexpectedtoappreciatemildlytoaround70INRintheshortterm

Source:http://www.oanda.com Historicalexchangerates

20

USDollarappreciatingagainstallcurrencies 2015wasabadyearfortheRuble butagoodyearforIndianNPprices

a ou d 0 t e s o t te

Newspr