Hathway Cable and Datacom Limited Investor Presentation – May 2018 1
Company Overview 2
Company Overview Consolidated Revenue* (INR Mn) & Hathway Cable & Datacom Limited (Hathway) promoted by Raheja Group, is one • EBITDA Margin (%) of the largest Multi System Operator (MSO) & Cable Broadband service providers in India today. 20,000 30.0% 22.3% 15,000 16.2% 20.0% The company’s vision is to be a single point access provider, bringing into the home • 12.1% 10,000 and work place a converged world of information, entertainment and services. 15,444 13,682 10.0% 11,550 5,000 Hathway is listed on both the BSE and NSE exchanges and has a current market • - 0.0% capitalisation of approximately INR 28.5 Bn as on 31 st March, 2018. FY16 FY17 FY18 Broadband Cable Television FY18 Operational Revenue Break-up Activation Others One of India’s largest MSO, across various Hathway holds a PAN India ISP license and is • • 6% 1% regions of the country and transmitting the the first cable television services provider to same to LCOs or directly to subscribers offer broadband Internet services Extensive network connecting and 7.2 Mn Approximately 5.2 Mn two-way broadband • • digital cable subscribers / households homes passed 65% of Subscribers serve through Hathway Placement Total broadband Subscribers – 0.80 Mn • • Broadband 20% Connect and 55% online payment made by 36% High-speed cable broadband services across • LCO 12 cities (4 metros and 3 mini metros) Offers cable television services across 350 • More than 52% share of the total MSO cable • cities and major towns broadband market in India 15 in-house channels and 10 Value Added • CATV Service (VAS) channels 37% 3 *As per Ind-AS Note: All numbers are on consolidated basis excluding GTPL
Group Structure • Parent Company Broadband Business Hathway Cable & • Hathway Digital Private Limited^ Datacom Limited CATV Business* (100% Subsidiary) (HCDL) • GTPL Hathway Limited # (37.32% Equity Strategic Investment Holding) 4 * CATV Business includes JVs/Associates/Subsidiaries * 5 subsidiaries companies will be merged in FY19 which will be line by line consolidation # Equity method of consolidation ^ line by line consolidation
Growth Strategy Leverage Trendsetter in broadband and Differentiated broadband industry Cable Television customer on speed, GBs, Price presence to give Objective experience & Value For Money differentiated equation content, services and Build Value for all applications stakeholders in the Value chain Increase broadband Leverage Cable subscriber base by Television network for Investment for increasing Broadband business growth penetration in for accelerating sub existing geographies growth Best in class • Cost Leadership consumer/LCO Shared services user interface in • model Cable Television Transform costs Automation industry • Centralization / New tariff order • • outsourcing optimize content cost 5
Hathway at a Glance Broadband 34% 30% 42% Upto 1 TB 200 MBPS 5.2 Mn 3 Year CAGR in Operating 3 Year CAGR in Maximum speed Data offered Broadband homes Broadband EBITDA Margins Broadband offered to its with average passed and presence Revenue subscribers in 12 cities (4 metros customers consumption of and 3 mini metros) INR 2,271 INR 5,445 Mn 0.80 Mn Average of 60 MBPS 103 GB Cable TV 2/3rd Base 7.2 Mn STBs 350+ 35,000 Kms 216K 23% Served through Hathway Connect Presence in cities Fibre cable HD 3 Year CAGR in and major towns network Subscription Revenue Subscribers 55% Online INR 5,733 Mn Collection 6
Financial Trends FY18 performance (Consolidated) Total Comprehensive Income (PAT) : INR (1,052) Mn; Losses reduced by 880 Mn Y-o-Y(+46% Y-o-Y) • Total Income : INR 15,444 Mn; Increase by 1,762 Mn Y-o-Y ; Y-o-Y Growth: (+13%) • EBITDA : INR 3,360 Mn ; Increase by 1,393 Mn Y-o-Y, Y-o-Y Growth: (+70%) • EBITDA Margins : 21.75% • Consolidated Revenue (INR Mn) Consolidated EBIDTA & Margins (INR Mn) Consolidated Comprehensive Income (INR Mn) 21.7% FY16 FY17 FY18 15,444 14.0% 13,682 11,550 11.0% -1,052 -1,932 -2,406 1,209 1,967 3,360 FY16 FY17 FY18 FY16 FY17 FY18 EBITDA EBITDA margin 7
Financial Trends Comparable Revenue (INR in Mn) Comparable EBITDA (INR Mn) 1,040 4,002 961 3,923 867 3,759 3,656 765 3,487 645 3,405 598 3,234 471 3,045 389 Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 Q1-FY18 Q2-FY18 Q3-FY18 Q4-FY18 Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 Q1-FY18 Q2-FY18 Q3-FY18 Q4-FY18 Hathway Cable and Datacom Limited (HCDL) opts to disclose only the standalone results to the stock exchanges as mandated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations. In view of the transfer of CATV Biz to Hathway Digital Private Limited (HDPL), management of HCDL presented the above clubbed numbers of HCDL and HDPL merely to facilitate a high-level comparison of quarterly numbers to its board. The clubbed numbers of HCDL and HDPL are based on the standalone financial statements of each of HCDL and HDPL respectively. The numbers of HCDL have been reviewed by its audit committee and statutory auditors. The numbers of HDPL have been approved by its board. No material deviation is expected in the clubbed numbers. 8
Leadership Board members Experienced management team with strong track record Rajan Gupta – Managing Director – IIM Bangalore alumni with over 20 years of experience in blue Sridhar Gorthi chip companies. Worked with Asian Paints, Coca Cola and Tata Tele Services in leadership role. Chairman & Independent Director Ajay Singh – Head-Legal, Company Secretary & Chief Compliance Officer – A Company Secretary Rajan Raheja and MBA (Finance) with professional experience of 22 years across sectors like Telecom, ICT, Non-executive Director Manufacturing and Real Estate. Worked across areas such as legal, secretarial, finance, treasury operations, project and risk management. Akshay Raheja Non-executive Director Ruzbeh Jaorewalla - CTO, West & North – Industry veteran with more than 30 years of experience specialising in setting up and managing headends and networks for Cable TV & Broadband. Viren Raheja Actively involved in setting up the first dish antenna in the country for receiving satellite transmission Non-executive Director for Cable TV networks. Earlier worked with Business India Television & Star TV. Vinayak Aggarwal S.Naga Kishore - CTO, South & East – B.E. in Electronics and Telecommunications and an MBA with Non-executive Director extensive experience of over 25 years with organizations like Tata Teleservices Ltd, Idea cellular. Proficient in wireless, transmission and wire line technologies and diversified functions like planning, Sasha Mirchandani implementation, operations and customer service management. Independent Director Devendra Shrotri Vivekanand Tripathi – CIO – Professional experience of 17 years with organizations like Infosys, Max Independent Director Life, Aegon Life Insurance covering industries like IT and Insurance. Ameeta Parpia Independent Director Sarathy.KK – Chief Customer Service Head – An MBA with professional experience of 24 years having worked in organisations like RPG Enterprises, Bharti Airtel, and Tata Teleservices, specialising in areas of Collections, Call Centre Management, Process Reengineering and Quality, using Six Rajan Gupta Sigma standards. Managing Director 9
Key Milestones Preferential Promoter funding Acquired 2 lakh Providence Introduced allotment of and launch Cable television Equity Acquired GPON FTTH high INR 4.5 Bn to Primary acquires 50% stake in speed internet subscribers NewsCorp Capital GTPL services Research & stake Cable television Tybourne Preferential Prepaid Subscriber base HD News Corp Chrys Capital Capital IPO - Raised INR allotment of implemented reaches 7 acquires 26% invests INR 2.6 Bn 4.8 Bn for Primary INR 2.5 Bn million mark equity stake in Introduced Introduced Promoters, subscribers Hathway at INR HD PVR Ericsson Hathway Providence 3.4 Bn partnership boxes Connect Equity & Oracle Billing Acquired 1.5 lakh portal for others invest & Revenue Cable television secondary The cable Management Primary subscribers television system subscribers Promoter, business has implemented Providence DOCSIS 3.0 been spun off to HD implemented a wholly owned subsidiary Reached a Introduced HD company milestone of boxes 5 lakh subscribers in broadband Successful IPO of subsidiary - GTPL 1998 2000 2003 2007 2008 2010 2012 2013 2014 2015 2016 2017 10
Geographical Presence Strong market share in important regional cable markets in India Haryana Faridabad |Gurgaon | Panjpat Uttar Pradesh Allahabad | Ghaziabad | Noida Delhi NCR And 3 other cities Madhya Pradesh Sikkim Bhopal City | Gwalior | Indore City Gangtok And 11 other cities West Bengal Rajasthan Darjeeling | Hoogly | Howrah | Kolkata Jaipur City | Nagaur | Sikar And 8 other cities Maharashtra Odisha Mumbai | Pune | Aurangabad | Latur | Nasik Cuttack | Bhubaneshwar And 21 other cities And 8 other cities Goa Chhattisgarh Raipur City And 10 other cities Karnataka Bangalore | Belgaum | Mysore And 24 other cities Telangana Hyderabad | Khammam Tamil Nadu Chennai Cable television Broadband Cable television & Broadband 11
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