Dish TV India Limited Investor Presentation Disclaimer Some of the - PowerPoint PPT Presentation

Dish TV India Limited Investor Presentation

Disclaimer 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 Dish TV India Limited 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 the Company 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. Dish TV India Limited does not undertake to update these forward-looking statements to reflect events or circumstances that may arise after publication. 2

Indian M&E Industry Snapshot Broadcasting industry Distribution industry TV industry size (INR Bn.) 2021P 771 394 Mu Multiple br broad oadcasters INR 771 Bn. Analog 2021 producing content in TV subscription Cable Digital 15 langu guages revenues 38% Cable 2017P CAGR of ~ 16% across 426 225 29% (2017-2021P) 7 genres INR 426 Bn. beaming 2017 DTH ~8 ~880 chan hannels 2012 TV subscription 245 125 33% revenues Subscription revenues Advertising revenues Indian television market statistics (HHs Mn.) 2016 2020 306 284 306 Mn. 284 Mn. 239 Total households 202 181 173 141 152 181 Mn. 202 Mn. Total TV households 113 64% 66% TV penetration (of total HHs) 84% 85% C&S penetration (of TV HHS) 2010 2016P 2020P Total HHs TV HHs C&S HHs 3 Source: TV industry size : FICCI-KPMG 2017, Indian television market statistics & broadcasting and distribution industry : MPA Report 2016

Distribution Industry 4

Digital Addressable Systems - DAS Phas hase III III Phas hase IV IV Phas hase I 7,709 urban areas Rest of India Phas hase II II Delhi, Mumbai, 31-Dec-2015 31-Dec-2016 38 notified cities Calcutta & Chennai 31-Jan-2017 31-Mar-2013 31-March-2017 30-June-2012 Cable  Bulk of the potential DAS converts  Land grab seeding at throw away prices  Limited coverage by large MSO’s due to dispersed population  No addressability/KYC  Very high DTH recognition; DTH best suited considering terrain  Working backwards to fill critical gaps; packaging-billing- dunning  Key target markets with more than 60% incremental potential for DTH DTH  Seeding ground for High-Definition  Phase III - Close to 100% seeding achieved*  Potential subscribers for upselling – high value packs  Phase IV - HH’s to be covered ~ 40 Mn.  Total number of HH’s in Phase IV~ 70 Mn.  ~40% seeding has been achieved in Phase 4 markets 5  689 districts to be covered across the country Source: * Ministry of Information and Broadcasting Annual Report, 2017

Distribution Industry - Cable 3 Tie 3 iered St Structure Distributors LCOs MSOs (at least 1 in each (more than ( more than 1,500) locality) 60,000) Pre-DAS  Analog signal - limited carrying capacity, broadcasters jostling for PCS  Placement & Carriage fees - bulk of MSOs top-line Post-DAS  Digital signal - fatter pipe, larger carrying capacity  Massive under declaration; ignored, to maintain MSOs ‘reach’  Placement fees mindset No incentive to raise ARPUs  B2B Net billing  100% postpaid. Element of bad debts? Net t Co Cont nten ent t Co Cost st  Impairment of Set-Top-Box (STB)? (per per sub ub p. p.m. m.) MSOs DTH ~ Rs. s.14 14 ~ Rs. s.65 65 Net t Co Cont nten ent t Co Cost st (per per sub ub p. p.m. m.) MSOs DTH ~ Rs. s.14 14 ~ Rs. s.65 65 Game Changer? 6 Tariff Order..

Distribution Industry - DTH DTH Players in India Dish TV*: 2003 Industry pioneer. Started operations in 2003. Part of the Essel Group 100% digital Owns last mile subscribers TATA Sky: Launched in 2006. JV Subscription driven top-line 2006 between the TATA Group and News Corp Fully prepaid subscription; no bad debts Sun Direct: 2007 Launched in 2007. JV Tax compliant between Sun Network and Astro, Malaysia DTH contributes ~ 60% of broadcaster’s Relia liance Digit ital: l: domestic subscription revenues 2008 Part of Reliance Communication Ltd, a subsidiary of Reliance ADA Air irtel l Digit ital: l: group 2008 Launched in 2008. Part of the telecom major Bharti Airtel. Videocon d2 d2h* h*: Launched in 2009. Part of the white goods 2009 manufacturing Videocon group 7 Notes: * As per the Scheme of Arrangement, Videocon d2h shall be merged into Dish TV, to form a combined entity to be renamed as Dish TV Videocon Limited

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Many Firsts to its Credit First to launch Live TV for First DTH moving vehicles in India 2003 2007 First to achieve operational break-even in the Indian DTH 2009 2009 industry First to negotiate content on a fixed First to fee basis launch High 2010 2010 Definition First to initiate consolidation in the First to launch First to launch a sub- online TV for DTH sector. Amalgamation of First to be PAT positive brand targeting regional First to offer Vd2h into Dish TV in viewers – ‘Dish in the Indian DTH 2012 2012 language markets – ‘Zing’ unlimited Online process industry recording 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 First to be FCF positive in the Indian DTH industry 9

Business Model P&L structure – 2QFY18 2% 3% Di Dish TV TV Indi ndia Li Limi mited Subscription revenues 100% Prepaid.100% EPRS. 0% 1% Bandwidth income Consolidated Advertising income revenues Upfront subsidy on Consumer Premises Equipment (CPE) Lease rent Other income 94% Average ARPU of Rs.149 Programming and other costs 14% Other operating expenses (excluding Churn at 0.8% p.m. Prog. & Other cost) 5% Consolidated 34% expenses Employee benefit expenses 18% Implied average subscriber life of 10 years Other expenses (including S&D exp.) EBITDA mar EBI argin – 28 28.9% .9% 10 Notes: # EPRS – Electronic Payment Recharge System. *ARPU & Churn numbers are for 2QFY18.

Key Metrics - Annual ARPU (Rs.) Market share # 300 5% 20% 11% 250 17% 200 172 21% 162 163 157 154 150 151 138 150 26% 26% 100 50 Dish TV Tata Sky Sun Direct Big TV Airtel Digital Videocon D2h 0 FY17 FY16(R2) FY15(R1) FY14 FY13 FY12 FY11 FY10 Net subscriber base (Mn.) Hardware subsidy (Rs.) 20 2400 15.5 2000 14.5 15 12.9 1600 1,400 11.4 10.7 1,235 9.6 1,100 8.5 10 1200 5.7 800 5 400 0 0 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY17 FY16 FY15 11 Notes: # Market share based on gross subscribers as on 31 st Sept, 2017 as per market estimates. (R1): Restated post netting off collection charges. (R2): Restated post netting off Entertainment Tax

Key Metrics - Annual Subscription revenues (Rs. Mn.) EBITDA (Rs. Mn.) 35,000 14000 12000 30,000 10,249 27,696 26,617 24,499 22,681 9,728 10000 25,000 7,331 19,228 8000 6,240 20,000 5,794 16,639 4,960 6000 15,000 11,927 4000 2,380 8,353 10,000 2000 1,117 5,000 0 -2000 - FY17 FY16(R2) FY15(R1) FY14 FY13 FY12 FY11 FY10 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 Programming and other costs as % of revenues Net profit/(loss) (Rs. Mn.) * 8500 6,924 60% 6500 50% 40% 4500 40% 35% 31% 31% 30% 30% 30% * 29.6% 2500 1,093 30% 31 500 20% (660) -1500 (1,331) (1,576) (1,920) 10% -3500 (2,622) 0% -5500 FY17 FY16(R2) FY15(R1) FY14 FY13 FY12 FY11 FY10 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 12 Notes: (R1) Restated, post netting off collection charges. (R2) Restated post netting off Entertainment Tax. * Including deferred tax assets of Rs. 740 and Rs. 4,360 mn. for FY17 and FY16 respectively

Key Metrics - Quarter Subscription revenues (Rs. Mn.) ARPU (Rs.) Net subscriber additions (Mn.) 10000 180 0.6 170 8000 160 0.4 7,288 6000 150 162 7,049 6,917 149 140 4000 148 0.2 0.259 130 2000 0.188 0.186 120 0 110 0 2QFY18 1QFY18 2QFY17 2QFY18 1QFY18 2QFY17 2QFY18 1QFY18 2QFY17 EBITDA (Rs. Mn.) & EBITDA margin Net profit (Rs. Mn.) 3000 45.0% 44.0% 43.0% 42.0% 4,500 2500 41.0% 40.0% 39.0% 38.0% 37.0% 2000 36.0% 34.1% 3,000 # 35.0% 34.0% 33.0% 1500 32.0% 2,657 31.0% 27.2% 28.9% 1,500 30.0% 29.0% 690 1000 28.0% 27.0% 2,161 2,012 26.0% 25.0% 0 500 24.0% 23.0% (139) 22.0% (179) 21.0% 0 20.0% -1,500 2QFY18 1QFY18 2QFY17 2QFY18 1QFY18 2QFY17 13 Notes: *2QFY17 figures have been restated to comply with Ind-AS

Strategy and Outlook 14

Strengthening the Core SD @ Rs. 8.50 (plus taxes) HD @ Rs. 17.00 (plus taxes)  Tailor made packages, for easy transition, for first time digital (pay) subscribers  Ala-carte offering across channels; first in the industry Rs. 169 plus taxes  Separate communication of indirect taxes to the subscriber; first in the industry 15 * GST Extra