Divisional details

Divisional details

Media Networks

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Media Networks

Strategic Priorities

Existing Operation

s

? Continue to invest in programming, marketing, ad sales infrastructure, and technology infrastructure for Crackle U.S.

? Invest in programming and marketing for MSM and GSN

? Continue to invest in both local and global original programming for international networks

? Continue to maximize operational efficiencies

New Operation

s

? Launch a Hindi language rural channel, TV ON, in India

? Launch a second Hindi movie channel in India, MAX2

? Pursue opportunities to launch Crackle in additional international territories

? Selectively launch channels in new and existing territories in order

to build scale and remain competitive; seek earnings accretive

opportunities where possible

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Media Networks

Strong and Consistent Earnings Growth

? Revenue is expected to reach over $2 billion in FYE15, growing at a 21% CAGR over the four year period

? Operating Income is expected to reach $336 million in FYE15, growing at a 16% CAGR over the four year period (excluding monetizations)

OI

$700 $600 $500 $400 $300 $200 $100

$0

Revenues One-Time Events/Monetizations Operating Income

$561

Revenues

$2,004

$2,500 $2,000

$375

$930 $186

$235

$260

$242

$17 $225

$336 $1 $335

$1,500 $1,000

$500

$0 FYE11 FYE12 FYE13 FYE14 FYE15

? Ad sales across the portfolio to grow by 20%+ year on year

? New investments (e.g., GEC and movie channel in India and Bash Games in the US) to drive growth

($ In millions)

Note: All years restated on a consistent basis to include U.S. channels and Networks HO Aspire

Media Networks

Operating Income by Region

Projected FYE15 Operating Income of $336 million is diversified throughout the world, with income split fairly evenly across MSM in India, GSN in North America and the branded international Networks

Projected Operating Income FYE15

Rest of Asia / Australia; 9%

North America; 27%

India; 34%

Europe; 14% Latin America; 16%

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Media Networks

MSM India update

Revenue and Operating Income are budgeted for double digit year-over-year growth - Revenue is expected to grow from $588 million in FYE14 to $695 million in FYE15 (+18%) driven mainly by recovery in domestic Indian ad sales performance and ongoing digitization efforts - Operating Income is expected to grow from $122 million in FYE14 to $151 million in FYE15 (+24%) (excluding new channel launches) driven primarily by improved performance of SET

In spite of FX and economic headwinds, MSM expects to continue its strong growth trajectory in FYE15 and increase its offerings in India - TV On, a new Hindi general entertainment channel targeting a female-centric, more rural audience is expected to launch in June 2014 - MAX 2, a library Hindi movie channel is expected to launch in April 2014; this will help MSM mitigate recent legislation limiting ad minutes per broadcast hour

Indian Premier League (IPL) Cricket - Season 7 projected Operating Income of $31.5 million is 4% lower than Season 6 due to unfavorable FX, one less team and 16 fewer matches than Season 6; however, the operating margin remains strong at 22%

India SET ratings continue to be lower than target and management is taking steps to improve - Recent management changes include a new channel head from STAR and a new programming head (starting in April) from Zee - Immediate activity includes more airplay for our older proven shows to draw the core audience back to sample the new shows, introducing new weekday shows and an increased focus on SET's core strength at the weekends to help raise overall ratings 5

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