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Adlabs Films Limited

Investor Presentation

March 2007

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Forward Looking Statements

This presentation contains statements that constitute “forward looking statements” including, without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to our future business developments and economic performance.

While these forward looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that we have indicated could adversely affect our business and financial performance.

Adlabs Films undertakes no obligation to publicly revise any forward looking statements to reflect future events or circumstances.

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A Reliance Anil Dhirubhai Ambani Group company

One of the few listed players in the Indian movie sector

Present across the value chain The leader in film processing A pioneer and one of the leaders in multiplexes Interests in production and distribution of movies, TV content and animation

Experienced management with a 25 year track record Significant goodwill within the industry Operating under a corporate umbrella for over 15 years in the industry

Extremely strong balance sheet

Introduction

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Adlabs – Milestones

1978: Started with ad films processing

1989: Entered main stream cinema processing

2000: IPO and listing on the exchanges

2001: Mumbai’s first multiplex and India’s first & the world’s largest IMAX dome

2001: Select investments in film co-production

2005: Reliance ADAG acquired majority stake in Adlabs

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FY 2004 FY 2005 FY 2006(9 months)

Dec 07CAGR

Revenues 19 22 29 54 47.4 %

EBITDA 8 10 12 17 33.1 %

PAT 4 5 6 13 52.4 %

Net Worth 24 27 77

Debt 3 6 3

RONW (%) 17.0 18.3 7.8

All figures in US $ Million

Infusion of US $ 152 million in FY 2006US $ 50 million as EquityUS $ 102 million by way of FCCBs

Financial highlights

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Manmohan Shetty

Founder – over 27 years of experience in the entertainment industry

Oversees strategic business planning, finance and business development

Chairman of National Film Development Corporation

Member of screening committee – IDBI Institutional film financing

Member of the FICCI committee on entertainment industry

Board of Directors

Manmohan Shetty Pooja Shetty Karan Johar Bergis Desai Shripal Morakhia Gautam Doshi

A management committee steers strategy

The members of this council are senior Reliance ADA executives and members of the Board

Core Management

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One of the fastest growing sectors in India

Currently estimated at US $8 billion, CAGR of 19% over the next five years

Largest film industry in the world More than 1,000 films And the highest number of admissions

at over 3 billion

Demographics and rising affluence driving growth

Source: The Indian Entertainment and Media Industry: 2006 report (PWC)

Indian Media & Entertainment Industry - Overview

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Movies are a dominant influence

Movies central to entertainment in India Music, radio and much of TV content revolves around films Influences Internet, gaming and newer forms of entertainment

Widely fragmented, dominated by family owned and small enterprises Organized capital and corporatization just beginning to enter the industry

Organized retail consumption formats (malls, multiplexes, DVDs) providing strong impetus for consumption-led value growth

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Expand vigorously within the multiplex space A format supported by consumers, distributors and the government Adlabs one of the few companies with multiplex experience Roll out in progress

Maintain pole position in film processing Enhance footprint by expanding into South & East India Expand scope to production infrastructure and services

Invest in content production – movies, television & animation Manage risk on a portfolio basis with risk limits

Invest in overseas distribution channel and select local distribution

Examine new opportunities, as it is a nascent industry

Core Strategy

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Publicity

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13

26

8

12

15

Processing

Post-production

Studio & Eqpt

Shooting

Above-the-line

(star cost etc.)

176

70

45

509Others

Satellite

Home video / music

Overseas

Indian theatrical

Production cost = 100

(Creation)

Gross retail sales = 350

(Consumption)

Constructed from data across a sample of movies

50%

20%

13%

14%

Value chain elements in content creation and consumption

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Content creation ServicesConsumer

facing

Movies

Television

Animation

Film processing at Mumbai, Chennai (South India), Kolkata (East India)

Expanding portfolio by investing in studios & infrastructure

Exhibition

(Multiplexes)

FM Radio

Distribution

International distribution with presence in USA & UK

Key film territories of Mumbai, Maharashtra, Gujarat, Delhi, UP and Punjab

Adlabs’ presence : from creation to consumption

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Uses

Over the next three years invest around US $180 million

40% in film exhibition

15% in processing and infrastructure creation for production services

20% in content production and distribution

Earmark 25% for new initiatives

Sources

Equity infusion of US $56 million

FCCBs of US $102 million

Internal accruals

Investment Plans : Horizon 2006-2008

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Film Exhibition

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• US $1.6 billion market; flowing from 400 cities/ towns across India

• Top 50 cities (40-45% of all-India box-office) have inadequate screens/ below par customer experience – implying significant growth opportunities, e.g.

• Ahmedabad, Surat: 170 people per seat

• Lucknow: 110 people per seat

• Chennai: 90 people per seat

• Over 8,000 active screens but only about 1,000 provide acceptable consumer experience

• Dominant players: PVR (80 screens), Adlabs (66), INOX (55), Shringar (36)

• Capital intensive business

0

500

1000

1500

2000

2500

3000

3500

US EMEA Rest of AsiaPac

India

0

20

40

60

80

100

120

140

Ireland France US India

No. of Admissions (in million)

No. of Screens (per million)

Source: The Indian Entertainment Industry: 2005 report (PWC)

Market overview

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Focus on prolific film markets: Hindi, Tamil and Telugu

Expansion based on a 2 pronged strategy Link to film markets: theatres across India – A chain

Focus on key cities based on consumer spend surrogates

Engineering and project management skills to execute – low to high capex

per seat – driven by consumer paying capacity

Acquisition of existing single screens for remodeling/refurbishment

Strategy

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Location (Cumulative)

Screens

(Cumulative)Admits (in millions)

March 05 4 17 3 million

March 06 8 31 5 million

March 07 16 66 9 million

March 08 65 165 17 million

March 09 130 315 44 million

Utilize scale to negotiate contracts: Capex, Opex, F&B, promotions, movies

Focus on profitability per consumer

Expansion

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Film Processing and Production Services

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In India, film processor serves the following roles Often funds film feedstock required by producer (1-10% of costs)

Keeps finished film in trust till distribution rights are sold

Releases film to distributors only after financiers are repaid

Is a financier, a custodian and a service provider

The commercial ecosystem – the producer, the financiers and the

distributors – repose complete faith in the processor

Processors develop long and deep relations within the industry

Film Processing : An Introduction

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Market leaders with over 70% share in the Hindi movie segment

Only dominant lab to be certified Kodak Image Care

Geographic expansion: Chennai (Tamil and Malayalam movies) and

Kolkata completed

Digital distribution of content being actively considered Metamorphose analogue processing lab into a digital lab

Intend to build high quality studio infrastructure Enhance footprint to cover end-to-end production services

Services : The Path Ahead

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Content Production and Distribution

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Successful track record: Bluffmaster, Apaharan, Taxi 9211, Nishabd, Namastey London etc.

Tie-ups with established directors in the industry

Strong line up of 6-8 films to be released across different genres every year

Co-production with MTV to produce youth centric movies

Co-production with Hyde Park to produce Hollywood films

Strong international and domestic distribution set up: prestigious movies released – Krrish, Baabul, Janeman, Vivah, Guru etc.

A portfolio approach: financial limits on movie risk

Content Creation : Movies

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Television

Majority ownership in Siddhartha Basu’s Synergy Communications

Track record of highly successful shows : Mastermind, Jhalak Dikhhla Jaa, Kaun

Banega Crorepati etc.

Leverage strengths of pedigree, track record and scale to provide quality content

Building expertise in the kids, lifestyle and fiction genres

Animation

Entry into the segment with two prestigious projects Tamil/ English project featuring Rajinikanth

Movie around a well known kids’ brand – Gini and Jony

Content Creation : Television and Animation

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Largest FM radio network – launching 45 stations across India

Take FM radio as a medium of entertainment into virgin markets beyond metros

Has capacity to touch every fifth Indian across the country, every third urban Indian and every eight Indian in rural India

Value pick in terms of cost per license: Rs 3 crore per license (USD 670,000)

Over 13 stations launched

Initial consumer feedback encouraging

In the process of being demerged from Adlabs Films

Big FM

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Reliance Communication

Largest wireless operator in India with 30 million subscribers

Over 80,000 route-km of optic fiber network implemented

Reliance Capital

Ranks among the top 3 private sector financial services and banking companies

Reliance mutual fund has a presence in over 115 cities in the country and an

investor base of over 3.1 million

Reliance Energy

Distributes more than 21 billion units of electricity

Serving over 25 million consumers in Mumbai, Delhi, Orissa and Goa

Reliance – ADA Group

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Never a dull moment

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Contacts

Manmohan Shetty, Chairman & Managing Director, Adlabs manmohan.shetty@adlabsfilms.com

Pooja Shetty, Wholetime Director, Adlabspooja.shetty@adlabsfilms.com

Anil Arjun, Senior Vice President, Reliance Capital anil.arjun@relianceada.com

Venkat Devarajan, Chief Financial Officer, Adlabsvenkat.devarajan@adlabsfilms.com

Our website : www.adlabsfilms.com