CMP: INR550 TP: INR630 (+15%) Buy

24 July 2017 1QFY18 Results Update Sector: Media Zee Entertainment BSE SENSEX S&P CNX 32,246 9,966 Motilal Oswal values your support in the Asiamoney Brokers Poll 2017 for India Research, Sales and Trading team. We request your ballot. Bloomberg Z IN Equity Shares (m) 960 M.Cap.(INRb)/(USDb) 463.9 / 6.8 52-Week Range (INR) 589 / 429 1, 6, 12 Rel. Per (%) 5/-3/2 Avg Val, INRm 1052 Free float (%) 56.9 Financials & Valuations (INR b) Y/E MARCH 2017 2018E 2019E Net Sales 64.3 66.4 76.7 EBITDA 19.3 21.6 27.0 NP 12.2 14.1 18.2 EPS (INR) 23.1 14.7 18.9 EPS Gr. (%) 149.4-36.2 28.4 EPS ex-&tv, INR 24.0 15.3 18.0 RoE (%) 24.7 22.6 24.5 RoCE (%) 23.1 18.5 20.7 P/E (x) 23.8 37.3 29.1 P/E ex-&tv (x) 23.0 36.0 30.6 EV/EBITDA (x) 26.4 23.5 19.0 Div. Yield (%) 0.5 0.5 0.5 Estimate change TP change Rating change CMP: INR550 TP: INR630 (+15%) Buy Ad performance in-line; subscription surprises positively Operational performance exceeds expectations: 1QFY18 EBITDA grew 7% YoY to INR4.84b (3.5% above estimate of INR4.68b). Revenue exceeded our expectation, led by better subscription and other sales & services. While revenue declined 2% YoY, Ex-sports; it was up 10% YoY to INR15.4b (3% above our estimate of INR14.94b). Despite the EBITDA beat, PAT missed estimate by 24% to INR2.5b (+16% YoY). This was a function of (i) lower-than-expected net other income and (ii) MTM losses on preference liability and higher tax outgo. Higher Tax incidence was on dividend income received from foreign subsidiaries. A commensurate credit will be availed on the annual DDT. Domestic ad growth largely in-line: Headline ad revenue grew 6% YoY to INR9.65b (in-line), of which domestic ads contributed INR9.1b (8% YoY; est. of INR9b).Domestic ad revenue (ex-sports and RBNL) grew 6.9% to INR8.7b. Softness in ad growth was on expected lines, as advertisers pulled the plug in June as primary sales suffered in the run up to GST roll-out. Management expects July to be soft too. International ad revenue fell 18% YoY to INR578m (est. of INR663m) as international biz was bogged down by continuation of certain region-specific issues and currency appreciation. Subscription surprises positively; margins in-line: Ex-sports, domestic subscription grew 14.5% YoY to INR3.78b (10% above our estimate of INR3.43b) and international subscription (ex-sports) remained largely flat YoY at INR1b (est. of INR0.93b). On a reported basis, domestic and international subscription declined 9% YoY each. Management is confident of mid-teen growth in domestic subscription over the next three years we have modeled +17%/20% in FY19/FY20. Non-sports margin remained largely flat YoY at 31.4% (in-line). Programming cost on a reported basis declined 11% YoY to INR5.86b (in-line) due to absence of sports-related content payouts. Valuation and view: We expect ad growth to revert to normal post 2Q. We revise our EPS estimates by 2%/3% for FY19/FY20 to factor in higher margins, and revise our TP to INR630 (prior: INR585) as we roll over our valuations to 32x June FY19 EPS (ex-&tv), plus INR27 toward &TV DCF value less INR11.5 toward pref. share liability. Maintain Buy. Jay Gandhi (Jay.Gandhi@MotilalOswal.com); +91 22 6129 1546 Aliasgar Shakir (Aliasgar.Shakir@motilaloswal.com); +91 022 3982 5423 Investors are advised to refer through important disclosures made at the last page of the Research Report. Motilal Oswal research is available on www.motilaloswal.com/institutional-equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Ad revenue grew 6% YoY; in-line Ad revenue grew 6% YoY to INR9.6b. (in-line). Domestic ad growth (ex sports & RBNL) grew 6.9% YoY to INR8.7b. Exhibit 1: Ad revenue and YoY growth (INR b, %) 33.7 28.8 15.5 18.5 10.5 34.3 32.4 25.4 24.4 26.5 21.5 17.4 15.0 16.9 15.7 7.3 8.5 5.3 5.1 4.8 5.3 5.8 6.8 5.8 6.2 6.3 7.4 6.7 7.8 8.3 9.2 8.5 9.1 9.6 9.6 3.4 8.5 9.7 0.0 0.8 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 Source: Company, MOSL Domestic and international subscription performance beats estimates 1QFY18 domestic subscription (ex-sports) grew 14.5% to INR3.79b. International subscription (ex-sports) remained flat YoY at INR1b (vs est: INR0.93b). Exhibit 2: Subscription revenue trend (INR m) International Domestic 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 976 959 1,038 1,049 1,137 1,141 1,136 1,172 1,073 1,231 1,243 1,292 1,189 872 1,007 933 945 1,039 1,030 1,262 1,103 1,158 1,117 1,026 1,000 2,075 1,951 2,224 2,973 2,505 2,808 2,962 3,374 3,168 3,350 3,322 3,344 3,238 3,373 3,455 4,175 3,680 3,752 4,188 4,682 4,179 4,675 4,818 4,554 3,788 Source: Company, MOSL Exhibit 3: Trend in EBITDA and margins ex-sports (INR b) EBITDA (ex sports) EBITDA margin (ex sports) (%) 37 39 41 36 31 37 39 3735 37 34 34 32 33 35 40 30 30 35 29 31 35 34 21 26 28 32 32 31 34 34 33 31 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 1.4 1.6 1.8 1.8 2.2 2.4 2.6 2.4 2.1 2.3 2.3 2.2 2.5 2.3 2.7 2.8 3.0 3.3 3.9 2.8 3.1 3.5 3.8 2.5 3.1 3.6 4.4 4.3 4.4 5.1 5.1 4.7 4.8 24 July 2017 2

Valuation and View ZEE continues to lead the industry in advertising growth. Strong performance of its recently launched &TV has strengthened Zee s presence in this core segment, driving market share gains. Zee also has a strong subscription income base and would further benefit from mandatory digitization. While domestic subscription growth is expected to remain strong, significant acceleration is likely only from FY18 post phase III digitization. We revise our EPS estimates by 2%/3% for FY19/FY20 to factor in higher margins, and expect 21% EPS CAGR over FY16-20. Maintain our Buy rating with a revised target price of INR630 per share (earlier INR585/sh) based on 32x June 2019 ex-&tv EPS plus INR27/sh toward &TV DCF value less INR11.5/sh toward pref. share liability Exhibit 4: ZEE: P/E band 40 35 30 25 20 15 10 5 Jun-07 Sep-08 PE (x) Peak(x) Avg(x) Min(x) 36.6 Dec-09 Mar-11 23.0 Jun-12 10.0 Sep-13 Dec-14 Mar-16 28.7 Jun-17 Exhibit 5: ZEE: Relative P/E v/s Sensex Zee Ent. PE Relative to Sensex PE (%) 100 LPA (%) 50 0-50 Jun-07 Sep-08 Dec-09 Mar-11 Jun-12 32.5 Sep-13 Dec-14 Mar-16 53.7 Jun-17 Source: MOSL, Company Source: MOSL, Company 24 July 2017 3

Exhibit 6: Quarterly performance (INR m) 1QFY17 4QFY17 1QFY18 YoY% QoQ% 1QFY18E v/s est (%) Advertising revenue 9,120 8,469 9,665 6.0 14.1 9,667 0.0 Subscription revenue 5,282 5,580 4,791-9.3-14.1 4,353 10.1 Other sales and services 1,315 1,231 947-28.0-23.1 920 2.9 Total revenue 15,716 15,280 15,403-2 0.8 14,941 3.1 Total operating expenses 11,185 10,593 10,559-6 -0.3 10,263 2.9 EBITDA 4,532 4,687 4,844 7 3.3 4,678 3.5 EBITDA margin (%) 28.8 30.7 31.4 261bp 77bp 31.3 14bp Depreciation 251 316 311 24-1.7 323-3.6 Finance Cost 75 1,122 147 96-86.9 100 47.0 Other income 734 549 1,011 38 83.9 700 44.4 Fair Value through P&L -1,132 470-532 -213.2 0 Proforma PBT 3,807 4,269 4,864 28 14.0 4,955-1.8 Exceptional item 0 12,234 0 NA NA 0 NA Reported PBT 3,807 16,503 4,864 28-70.5 4,955-1.8 Tax 1,626 1,464 2,344 44 60.1 1,635 43.4 Effective Tax Rate (%) 42.7 8.9 48.2 549 3,932 33.0 1519bps PAT 2,181 15,039 2,520 16-83.2 3,320-24.1 Associates/Minority Interest 12-103 6 2 Adjusted PAT after minorities 2,170 15,142 2,514 16-83.4 3,318-24.2 Advertisement revenue (INR m) Ad revenue 9120 8469 9665 6 14.1 9,667 0.0 Domestic 8415 7944 9087 8.0 14.4 9,004 0.9 International 705 525 578-18.0 10.1 663-12.8 Subscription revenue (INR m) Domestic 4,179 4,554 3,788-9 -16.8 3,427 10.5 International 1,103 1,026 1,000-9 -2.5 927 7.9 Total subscription revenue 5,282 5,580 4,788-9 -14.2 4,353 10.0 Operating costs (INR m) Prog, Transmission & Direct Exp 6,575 6,527 5,863-11 -10.2 5,906-0.7 Staff Cost 1,499 1,593 1,669 11 4.8 1,464 14.0 Selling and Other Exp 3,110 2,474 3,027-3 22.4 2,892 4.6 Total operating costs 11,185 10,593 10,559-6 -0.3 10,263 2.9 Sports business (INR m) Revenue 1,700 1,066 0-100 -100.0 0 0.0 Operating cost 1,529 1,049 0-100 -100.0 0 0.0 EBITDA 171 17 0-100 -100.0 0 0.0 EBITDA margin (%) 10 2 NM NM NM NM 0bp Non-sports business (INR m) Revenue 14,016 14,214 15,403 9.9 8.4 14,941 3.1 Operating cost 9,656 9,544 10,559 9.4 10.6 10,263 2.9 EBITDA 4,361 4,670 4,844 11.1 3.7 4,678 3.5 EBITDA margin (%) 31.1 32.9 31.4 34bp -141bp 31.3 14bp Source: Company, MOSL 24 July 2017 4

Exhibit 7: Summary of estimate change (INR b) INR b FY18E FY19E FY20E Ad revenue Old 40.3 47.0 54.9 Actual/New 40.0 46.6 54.5 Change (%) -0.8-0.8-0.8 Subscription revenue Old 21.7 25.4 29.8 New 22.2 25.5 29.9 Change (%) 2.4 0.3 0.3 Total revenue Old 66.2 76.7 89.3 New 66.4 76.7 89.4 Change (%) 0.3 0.0 0.2 EBITDA Old 21.3 25.2 30.4 New 21.6 27.0 32.7 Change (%) 1.3 7.1 7.5 EBITDA margin (%) Old 32.2 32.8 34.1 New 32.5 35.2 36.6 Change (bp) 30 236 249 PAT Old 14.69 17.82 20.69 New 13.62 18.18 21.34 Change (%) -7.3 2.0 3.1 EPS (INR) Old 15.3 18.6 21.5 New 14.2 18.9 22.2 Change (%) -7.3 2.0 3.1 Source: Company, MOSL 24 July 2017 5

Exhibit 8: Zee Entertainment: A Snapshot (INR) INR b FY09 FY10 FY11 * FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Advertisement Revenue 10.6 10.7 17.1 15.8 19.6 23.8 26.6 33.7 36.7 40.0 46.6 54.5 YoY (%) 14 1 60-7 24 21 12 26 9 9 16 17 -Advertisement Revenue (ex-&tv) 10.6 10.7 17.1 15.8 19.6 23.8 26.4 31.0 32.8 34.5 39.2 45.9 YoY (%) 1 60-7 24 21 11 17 6 5 14 17 -Advertisement Revenue (ex-&tv and Sports) 9.6 15.5 14.5 17.9 21.5 24.2 28.8 30.6 34.5 39.2 45.9 YoY (%) 62-7 24 20 13 19 6 13 14 17 Subscription Revenue 9.0 9.8 11.3 13.2 16.2 18.0 17.9 20.6 22.6 22.2 25.5 29.9 YoY (%) 22 9 15 17 23 11 0 15 10-2 15 17 - Domestic 4.5 5.7 7.2 9.2 11.6 13.2 13.9 16.3 18.2 18.4 21.5 25.8 YoY (%) 29 25 27 28 26 13 6 17 12 1 17 20 - International 4.5 4.2 4.1 4.0 4.6 4.8 4.0 4.3 4.4 3.8 4.0 4.0 YoY (%) 15-8 -2-2 14 6-17 7 3-14 4 2 Other Sales & Services 2.1 1.5 1.1 1.3 1.1 2.4 4.3 3.9 5.0 4.2 4.6 5.1 YoY (%) 33-32 -28 25-15 113 80-9 28-16 10 10 Total Revenue 21.8 22.0 29.4 30.4 37.0 44.2 48.8 58.1 64.3 66.4 76.7 89.4 YoY (%) 19 1 34 3 22 20 10 19 11 3 15 17 Operating expenses 16.3 15.9 21.8 23.0 27.5 32.2 36.3 43.0 45.1 44.8 49.7 56.7 YoY (%) 26-3 38 5 19 17 13 18 5-1 11 14 EBITDA 5.5 6.1 7.6 7.4 9.5 12.0 12.5 15.1 19.3 21.6 27.0 32.7 YoY (%) 1 11 24-2 29 26 4 21 27 12 25 21 EBITDA margin (%) 25.2 27.7 25.7 24.3 25.8 27.2 25.7 26.0 29.9 32.5 35.2 36.6 Revenue mix (%) Ad and broadcast revenue 49 49 58 52 53 54 54 58 57 60 61 61 Subscription revenue 42 45 38 44 44 41 37 35 35 33 33 33 -Domestic 21 26 24 30 31 30 29 28 28 28 28 29 - International 21 19 14 13 12 11 8 7 7 6 5 5 Other sales and services 10 7 4 4 3 5 9 7 8 6 6 6 Sports/Non-sports break-up Revenue 21.8 22.0 29.4 30.4 37.0 44.2 48.8 58.1 64.3 66.4 76.7 89.4 -Sports 3.9 3.2 4.4 3.9 5.0 6.6 6.3 6.3 6.3 0.0 0.0 0.0 -Non-sports (incl &TV) 17.9 18.8 25.0 26.5 32.0 37.6 42.5 51.8 58.0 66.4 76.7 89.4 -&TV 0.2 2.6 4.4 6.7 9.4 10.9 -Non-sports (excl &TV) 42.4 49.2 53.6 59.7 67.2 78.5 EBITDA 5.5 6.1 7.6 7.4 9.5 12.0 12.5 15.1 19.3 21.6 27.0 32.7 -Sports 0.4-0.6-2.1-1.5-0.9-1.0-0.3-0.3 0.1 0.0 0.0 0.0 -Non-sports (incl &TV) 5.1 6.7 9.6 8.9 10.4 13.0 12.8 15.5 19.2 21.6 27.0 32.7 -&TV -0.9-1.8-1.0-0.8 1.4 2.0 -Non-sports (excl &TV) 5.1 6.7 9.6 8.9 10.4 13.0 13.7 17.3 20.2 22.3 25.6 30.7 EBITDA margin (%) 25.2 27.7 25.7 24.3 25.8 27.2 25.7 26.0 29.9 32.5 35.2 36.6 -Sports 10.0-18.3-47.1-37.6-17.5-14.8-4.2-5.5 1.5 -Non-sports (incl &TV) 28.5 35.4 38.6 33.5 32.5 34.6 30.1 29.9 33.0 32.5 35.2 36.6 -Non-sports (excl &TV) 28.5 35.4 38.6 33.5 32.5 34.6 32.3 35.1 37.7 37.4 38.0 39.2 * Includes merger of Regional General Entertainment Channels Source: Company, MOSL 24 July 2017 6

Financials and Valuations Income Statement (INR Million) Y/E March 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E Advertisement Revenues 17,085 15,841 19,639 23,800 26,603 33,652 36,735 40,000 46,585 54,488 Subscription Revenues 11,275 13,245 16,234 18,022 17,944 20,578 22,630 22,213 25,471 29,870 Other Sales & Services 1,053 1,320 1,123 2,395 4,299 3,895 4,978 4,181 4,599 5,059 Net Sales 29,414 30,406 36,997 44,217 48,846 58,125 64,342 66,394 76,656 89,418 Change (%) 3.4 21.7 19.5 10.5 19.0 10.7 3.2 15.5 16.6 Total Income 29,414 30,406 36,997 44,217 48,846 58,125 64,342 66,394 76,656 89,418 Total Expenses 21,847 23,010 27,452 32,175 36,299 42,989 45,073 44,831 49,694 56,713 EBITDA 7,566 7,396 9,545 12,042 12,547 15,136 19,269 21,563 26,962 32,705 Change (%) -2.3 29.0 26.2 4.2 20.6 27.3 11.9 25.0 21.3 % of Net Sales 25.7 24.3 25.8 27.2 25.7 26.0 29.9 32.5 35.2 36.6 Depreciation 289 323 399 501 673 777 1,152 1,319 1,494 1,657 EBIT 7,277 7,073 9,146 11,541 11,874 14,359 18,117 20,244 25,468 31,048 Other Income 851 1,384 1,461 1,807 2,278 1,951 2,240 2,999 2,611 1,888 Interest & Finance Charges 104 50 86 158 103 1,598 1,372 1,072 100 100 Extraordinary Expense 1039 0 0 0 0-331 10030 0 0 0 PBT 9,064 8,407 10,521 13,191 14,049 14,381 29,015 22,170 27,979 32,837 Tax 2,813 2,500 3,337 4,291 4,284 5,491 6,804 8,006 9,793 11,493 Effective Rate (%) 31.0 29.7 31.7 32.5 30.5 38.2 23.5 36.1 35.0 35.0 PAT 6,251 5,907 7,184 8,900 9,765 8,890 22,204 14,157 18,179 21,337 Minority Interest 118-15 14 21 20 14-7 -7-7 -7 Adj. PAT 7,408 5,892 7,198 8,921 9,785 8,904 12,167 14,150 18,172 21,330 Change (%) -20.5 22.2 23.9 9.7-9.0 36.7 16.3 28.4 17.4 Balance Sheet (INR Million) Y/E March 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E Share Capital 978 959 954 960 960 960 960 960 960 960 Reserves 30,004 33,349 38,161 26,247 34,449 39,266 57,135 66,425 79,984 96,991 Net Worth 30,982 34,308 39,115 27,207 35,410 40,226 58,095 67,385 80,944 97,952 Preference capital 0 0 0 20,170 20,170 17,140 15,262 16,136 12,102 8,068 Minority Interest 119 14 33 61 4 85 0 0 0 0 Loans 17 21 28 29 22 9 3,834 11 11 11 Other non-current liabilities 0 0 174 324 288 304 0 0 0 0 Capital Employed 31,118 34,343 39,350 47,791 55,894 57,764 77,192 83,533 93,058 106,031 Net Fixed Assets 2,026 2,305 2,779 3,108 3,490 5,171 6,717 7,520 8,136 8,510 Goodwill 6,038 6,894 7,127 7,625 7,887 8,843 2,676 2,676 2,676 2,676 Capital WIP 42 201 69 997 878 1,104 1,270 1,270 1,270 1,270 Investments 623 675 651 2,941 1,464 4,167 2,608 2,608 2,608 2,608 Deferred tax assets (net) 192 337 288 298 531 648 903 903 903 903 Other non-current assets 297 314 329 361 378 5201 6193 6193 6193 6193 Curr. Assets, Loans&Adv. 29,752 32,428 39,500 44,987 55,431 54,233 80,941 76,661 73,417 71,073 Program Films 5,396 7,339 8,745 11,736 11,878 13,482 16,844 14,046 15,593 17,651 Sundry Debtors 8,704 8,660 9,890 10,281 10,692 13,180 13,059 13,538 15,630 18,233 Cash & Bank Balances 12,500 11,100 13,100 15,300 20,480 17,223 38,001 37,011 28,264 18,939 Loans & Advances 2,895 4,975 7,430 6,788 11,053 9,339 1,542 5,614 6,481 7,561 Other Current assets 257 354 335 882 1,328 1,009 11,495 6,451 7,448 8,689 Current Liab. & Prov. 7,860 8,820 11,404 12,538 14,256 14,145 14,702 14,298 15,705 17,769 Sundry Creditors 4,716 3,872 5,172 5,050 4,204 4,768 4,891 4,742 5,238 5,966 Other Current Liabilities 657 3,015 3,445 3,842 4,980 8,766 8,955 8,700 9,611 10,946 Provisions 2,487 1,933 2,787 3,646 5,072 611 856 856 856 856 Net Current Assets 21,892 23,608 28,096 32,449 41,153 40,088 66,239 62,362 57,712 53,304 Misc. Exps. 0 0 0 0 0-7,468-3,123 0-833 0 Appl.of Funds 31,118 34,343 39,350 47,791 55,894 57,764 77,192 83,533 93,058 106,032 24 July 2017 7

Financials and Valuations Ratios Y/E March 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E Basic (INR) EPS 6.1 7.5 9.3 10.2 9.3 23.1 14.7 18.9 22.2 Cash EPS 6.4 7.9 9.8 10.9 10.4 13.9 16.1 20.5 23.9 EPS (excl '&TV' loss) 6.1 7.5 9.3 10.8 10.4 24.0 15.3 18.0 20.9 Book Value per Share 35.4 40.9 28.5 36.9 42.0 60.5 70.2 84.3 102.0 DPS 1.5 2.0 2.0 2.3 2.3 2.5 2.5 3.0 3.0 Payout (Incl. Div. Tax) % 24.4 26.5 21.5 22.1 24.3 10.8 17.0 15.8 13.5 Valuation P/E 89.5 72.9 54.0 59.3 23.8 37.3 29.1 24.8 P/E (excl '&TV' loss) 85.7 69.2 50.8 52.9 23.0 36.0 30.6 26.4 EV/EBITDA 40.4 30.9 42.1 34.9 26.4 23.5 19.0 15.8 EV/Sales 9.8 8.0 10.8 9.1 7.9 7.6 6.7 5.8 Price/Book Value 9.3 8.1 14.9 13.1 9.1 7.8 6.5 5.4 Dividend Yield (%) 0.5 0.6 0.4 0.4 0.5 0.5 0.5 0.5 Profitability Ratios (%) RoE 18.0 19.6 26.9 31.2 24.4 24.7 22.6 24.5 23.9 RoCE 18.2 19.7 20.7 19.0 17.7 23.1 18.5 20.7 21.5 RoIC 24.7 26.1 28.8 26.8 26.0 39.3 33.2 32.0 28.0 Turnover Ratios Debtors (No. of Days) 104 98 85 80 83 74 74 74 74 Inventory (No. of Days) 162 169 181 201 178 199 199 199 199 Creditors (No. of Days) 78 69 66 53 43 45 45 45 45 Asset Turnover (x) 0.9 1.0 1.0 0.9 1.0 1.0 0.8 0.9 0.9 Leverage Ratio Debt/Equity (x) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Cash Flow Statement (INR Million) Y/E March 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E EBITDA 7,396 9,545 12,042 12,547 15,136 19,269 21,563 26,962 32,705 Other Inc/excep. items 1,384 1,461 1,807 2,278 1,620 2,240 2,999 2,611 1,888 Interest paid -50.0-85.5-157.8-102.6-1598 -1372.4-1072.4-100 -100 Direct Taxes Paid -2,645-3,288-4,301-4,517-5,608-7,059-8,006-9,793-11,493 (Inc)/Dec in Wkg. Capital -4,622-3,838-462 -5,132-8,341-8,123 1,433-5,261-5,790 Preference dividend paid CF from Oper. Activity 1,463 3,794 8,929 5,072 1,209 4,955 16,916 14,420 17,211 (Inc)/Dec in FA + CWIP -1,617-974 -2,256-1,198-3,641 3,303-2,122-2,110-2,031 (Pur)/Sale of Invest. -52 24-2,290 1,477-2,703 1,559 0 0 0 CF from Invest. Activity -1,669-950 -4,546 279-6,344 4,861-2,122-2,110-2,031 Issue of Shares 606 1,348-20,159 2,472 646 0 0 0 0 Inc/(Dec) in Debt 4 7 20,171-7 -3,043 1,947-2,949-4,034-4,034 Dividends Paid -1,683-2,232-2,244-2,601-2,613-2,881-2,881-3,457-3,457 Others -120 33 49-37 95-92 -7-7 -7 CF from Finan. Activity -1,193-844 -2,183-173 -4,915-1,026-5,837-7,498-7,498 Inc/(Dec) in Cash -1,399 2,000 2,200 5,179-10,049 8,790 8,957 4,811 7,682 Add: Beginning Balance 12,500 11,100 13,100 15,300 20,480 17,223 38,001 37,011 28,264 Closing Balance 11,100 13,100 15,300 20,480 17,223 38,001 37,012 28,264 18,940 24 July 2017 8

Corporate profile Company description ZEEL is the leading player in television broadcasting and syndication of content overseas with a bouquet of 40 TV channels. Zee has well-established reach of over 730m+ viewers across 169 countries. ZEEL has channels encompassing all major genres like Hindi GEC, Hindi Movies, Regional GECs and Sports. Exhibit 1: Sensex rebased Source: MOSL/Bloomberg Exhibit 2: Shareholding pattern (%) Jun-17 Mar-17 Jun-16 Promoter 43.1 43.1 43.1 DII 5.7 4.5 3.8 FII 44.7 46.4 48.1 Others 6.6 6.1 5.0 Note: FII Includes depository receipts Source: Capitaline Exhibit 3: Top holders Holder Name % Holding Oppenheimer Developing Markets Fund 6.8 Vanguard International Growth Fund 1.5 Government of Singapore 1.4 Columbia Acorn International 1.0 NA 0.0 Source: Capitaline Exhibit 4: Top management Name Designation Exhibit 5: Directors Name Name Subhash Chandra Chairman Ashok Kurien Manish Chokhani Punit Goenka Managing Director & CEO Neharika Vohra Sunil Sharma M Lakshminarayanan Executive VP & CS Subodh Kumar Adesh Kumar Gupta Source: Capitaline *Independent Exhibit 6: Auditors Name MGB & Co LLP Type Statutory Source: Capitaline Exhibit 7: MOSL forecast v/s consensus EPS MOSL Consensus (INR) forecast forecast Variation (%) FY18 14.7 15.7-6.3 FY19 18.9 18.8 0.3 FY20 22.2 21.8 1.7 Source: Bloomberg 24 July 2017 9

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