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 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 d i Th d 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 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

About us

India’s pioneer DTH service provider; the only listed pure-play DTH company in the country.

Consistent market leader with more than 32% subscriber share currently.

Part of the:

Having diverse presence across media, packaging, entertainment, technology GROUP

g p , p g g, , gyenabled services, infrastructure development and education.

India’s first and the country’s largest fully integrated media and entertainment conglomerate.

Promoted and led by Subhash Chandra, Chairman, Essel group of companies, a thought leader and a pioneer in most of his businesses.

3

Indian DTH industry

4

Journey so far

25 VOLUNTARY DIGILIZATION BY CABLE OPERATORS .

DTH SUBS CROSS20 MN MARK

15

20

MN

DISPUTE OVER CONTENT . SETTLEMENT BTW DISH & STAR

DTH SUBS BREACH THE 2MNMARK IN A 2 PLAYER MKT.

DTH SUBSCRIBERBASE AT ~10 MN

10

15

RIBE

RS IN

M

DIGITIZATION TRIGGRED,CAS MADE MANDATORY IN SELECT PART OF METROS DISPUTE WITH SUN TV

5

SUBS

CR

LAUNCH OF DTH SERVICEBY DISH TV IN SELECTMARKETS

OVER CONTENT. SETTLED.

LAUNCH OFDTH SERVICE LAUNCH OF DTH

LAUNCH OF DTH SERVICE BY VIDEOCONLAUNCH BY

SUN DIRECT

0

BY TATASKYLAUNCH OF RELIANCE BIG TV

LAUNCH OF DTHSERVICE BY AIRTEL

5

DISH Subscribers DTH Subscribers

Opportunities galore!

Key statistics:

81% 84% 86%88%

80%

100%

250

300

Total HHs 232 mn.

TV HHs 136 mn.

TV Penetration 59%

229 233236

238 241 243

129 136 142 147 152 155

94 105115 123

130 136

73% 77% 81% 84%

20%

40%

60%

80%

50

100

150

200

250

Mill

ion

C&S HHs 105 mn.

C&S Penetration (in TV HHs) 77%

DTH Subs * 26 mn.

0%

20%

0

50

2008 2009 2010E 2011E 2012E 2013E

Total HHs TV HHs

Increasing TV HHs; likely to be 155 million, 64% penetration, by 2013. Developed countries average penetration at more than 97%. China at 98%.

DTH Subs 26 mn.C&S HHs C&S Penetration

Developed countries average penetration at more than 97%. China at 98%.

C&S penetration: huge opportunity, likely to be 88% by 2013.

DTH to be the key driver & direct beneficiary of increasing C&S households!6

Source: MPA 2009 report C&S implies cable TV & DTH HHs* Up to 30/09/10. (Source: market est.)

DTH growth projections…

30

35

40

24.1

29.534.1

37.8

3035

40

45

30

3539

43

20.5% CAGR 2009-13 25% CAGR 2009-13

MPA 2009 FICCI Frames 2010

5

10

15

20

25

1.1 3.6

11.1

17.9

10

1520

25

30

16

24

0

5

2006 2007 2008 2009 2010p 2011p 2012p 2013p

DTH Sub. Base (mn.)

05

2009 2010p 2011p 2012p 2013p 2014p

40%

50%

60%

70%58.5% 61.2% 63.9% 64.3% 63.9% 63.7% 63.5% 63.3% 63.2%

22 4% 24 4%12.0% 17.0% 21.0% 24.0% 26.0% 28.0%

0%

10%

20%

30%

0.4% 0.9%2.9%

8.6% 13.1% 16.9% 20.0%22.4% 24.4%

1.0% 2.0% 4.0%

12.0%

7% Cable HHs to TV HHs % DTH HHs to TV HHs % DTH HHs to Pay TV HHs

Source: MPA 2009Cable HHs include analogue & digital cable Pay TV includes Cable + DTH + IPTV

Outperformed !!

MPA 2009 Report - Indian DTH subscribers to reach 24.1 mn. by the end of 2010 !

FICCI Frames 2010 -“Total number of DTH subscribers to be added in 2010 is expected to be ~ 8 million.”

January – September 2010 – 7.6 million* DTH subscribers added

taking industry size to 26 million !taking industry size to 26 million !

Festival quarter to add to the momentum!

8* Source: Market Est.

Outperformed !!

2530

10 3

18.4 26DTH industry scale-up

Subscribers in Mn.

Source: Dish TV actual & industry est.

05

101520

1.54.3

10.3

DTH driving digitization & growth in pay-TV HHs.

DTH penetration already at 24% of C&S HHs; ahead of estimates

2006 2007 2008 2009 2010 - Upto September

DTH penetration already at ~ 24% of C&S HHs; ahead of estimates.

An estimated 60% of all new C&S subscribers up to 2018 expected to opt for a DTH connection.*

TRAI’s recent recommendations on digitization in the form of sunset clause to provide further impetus.

9

With close to 2.5 mn. subscribers being added every quarter, India is poised to overtake the current leader (U.S), which currently adds ~ 1.5 mn. subscribers each year.

* Source: MPA report 2009

Digitizing with addressability

92%

83%

70%

80%

90%

100%Cable subscription to broadcasers DTH subscription to broadcasters

67%56% 53% 51%

33%

44% 47% 49%

30%

40%

50%

60%

70%

8%

17%

33%

0%

10%

20%

30%

2006 2007 2008 2009 2010 P 2011 P2006 2007 2008 2009 2010 P 2011 P

` mn. Subscription RevenueCable Subscription to Broadcasters 2006 2007 2008 2009 2010P 2011P

Subscription Income Paid (Digital + Analogue) 19750 23110 27545 30805 34535 39305

Less: Carriage & Placement Received 5000 6000 12000 13000 13000 13300

Net Subscription Paid 14750 17110 15545 17805 21535 26005DTH Subscription to Broadcasters

Net Subscription Paid 1360 3415 7795 13905 19375 24925

10Source: MPA 2009, FICCI 2010 & Mkt. estimates

DTH continues to strengthen its relationship with broadcasters creating a win-win situation for both.

Key regulations

Licensing

• Total foreign investment limit of 49% (sub limit ceiling of 20% for FDI) *

• Uplink centre to be in India

• Set-top boxes to be BIS compliantg• License fee at 10% of DTH revenues (favourable TDSAT Order received on 28/05/10 will result in

license fee outflow at ~ 4%)

• Initial license validity of 10 years; renewable thereafter

Service quality

• Subscribers can be offered STBs on Rent/Hire-Purchase/Sale

• Mechanism to be in place for handling customer complaints & grievances

Inter-connect

• Broadcasters have to provide content to all distribution platforms; pricing flexible

• Prohibits broadcasters from seeking guarantee for minimum number of subscribers

Reference inter-

connect

• Pricing information on content of the broadcaster

• Maximum 50% of non-CAS cable rates

• A-la-carte offering to be allowed

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* As per TRAI’s (Telecom Regulatory Authority of India) recommendation dated 30th June, 2010 to the Ministry of I&B, Foreign Investment Limit for DTH is to be increased to 74%. The recommendation is yet to be approved.

Recent regulatory initiatives

Tariff Orderfor

addressable

• Broadcasters to mandatorily provide pay channels to digital service providers at a maximum of 35%

of corresponding rates for non-addressable cable TV services *addressablesystems

of corresponding rates for non addressable cable TV services

• Retail tariff under forbearance.

TRAI recommendation on sunset date for analogue TV systems in India:

Digitization

TRAI recommendation on sunset date for analogue TV systems in India:

• Phase I # - Four metros – by 31/03/2011. Phase II – Cities with 1 mn.+ population - by 31/12/2011

• Phase III – Other urban areas – by 31/12/2012. Phase IV – Rest of India – by 31/12/2013.

12

* Since challenged by Pay Broadcasters in TDSAT. # Phase I likely to miss deadline due to Common Wealth Games and state elections.

Dish TV – market leader in DTH

13

Business – basics

Direct-to-home distribution of TV channels up-linked from India by Broadcasters.

CPE installed on rent at consumer’s premises.

Inertia to pay for hardware equipment results in up-front subsidy on STBs.

Negative Working Capital cycle – subscription revenue collected in advance.

DTH revenue includes subscription and lease rentals. p

Emerging revenue streams - Value-added-services, Movie –on-demand and Bandwidth charges.

Fixed content cost deals with most broadcasters; significant competitive advantage.

Growing subscriber base would bring operating leverage into play.

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Key strengths

Strong Brand presence and Brand recall.

Brand

Largest subscriber base amongst all six players; currently over 32%.Carried and distributed by most third party dealers and distributors.

Market Leadership

Highest number; more than 250 channels & services and growing.Fixed content cost deal with most big broadcasters.

Content

Fixed content cost deal with most big broadcasters.

Pan-India presence through 1400 distributors & ~55,000 dealers across 6600 towns N t k g d b 200 l l 8 Z l d 19 R gi l Offi

Selling & Distribution Network

Network managed by over 200 sales personnel. 8 Zonal and 19 Regional Offices.

Sufficient capacity to broadcast increasing number of channels – currently 11 KU

Advanced Infrastructure & Technology

15

p y g yband transponders equivalent.

‘DISH TRUHD’ with content tie-up with highest no. of HD channel broadcasters.

Select key management personnel

Promoter – Essel Group of Companies. He is thepioneer of the Indian television industry and recipientof numerous honorary degrees, industry awards andcivic honours Profile - Chairman pdf

Subhash ChandraNon Executive Chairman

civic honours. Profile Chairman.pdf

Mr. Goel is the MD of Dish TV since January ‘07 & hasbeen instrumental in establishing it as India’s leadingDTH company. He has also been actively involved inthe expansion of the Essel Group and is an active

Jawahar Lal GoelManaging Director

member on the Board of various committees set up byMIB, Govt. of India for addressing critical mattersrelating to the industry. Profile - MD.pdf

R.C. VenkateishCEO On-board since July ‘10, he was the MD-India & South

Asia, ESPN Star Sports before that. An IIT, IIMAsia, ESPN Star Sports before that. An IIT, IIMGraduate, Venkateish has more than 27 years ofexperience & a successful track record in turningaround businesses & re- defining business processesfor winning brands like Oral-B, Nestle and Kelloggs.Profile - CEO.pdf

S l l Salil KapoorCOO

Rajeev Dalmia

Salil has a work experience of more than 18 years andhas worked with various global corporations includingMicrosoft and Samsung. He is an MBA from DelhiUniversity.

16

Rajeev DalmiaCFO A qualified Chartered Accountant, Rajeev has been

leading the finance department since January, ‘07.

Dish TV – now

17

18Dish TV crossed the 8 million subscriber mark in August, ‘10 becoming the first DTH player in the country to achieve the landmark number so far.

Market share

Dish TV continues to lead with the highest market share amongst all 6 players

19% 10%

15%20%

15%

4%

32%

Dish TV Tata Sky Sun Direct

Big TV Airtel Digital Videocon D2h

19Source: Dish TV actual & industry est. (30/09/10)

Consistent leadershipDish TV – Increasing number of subscribers Dish TV - Market share on total subscriber base

10

2675%

70%

80%30

6

8

5.55.9

6.46.9

7.5

8.3

5 35.7

6.2

6.8

18.4

20.7

23

50%

60%

70%

20

25

43.9

4.75.1

5.5

3.44

4.34.6

55.3

11.1

6 4 6.9 7.5 8.3

42%

35% 33%33% 32%

20%

30%

40%

10

15

0

2

Q2 Q3 Q Q Q2 Q3 Q Q Q2

3.62.7

4.76.4 6.9

0%

10%

20%

0

5

D '07 D '08 D '09 M h '10 J '10 S t '10

Source: Dish TV

Q2 FY 09

Q3 FY 09

Q4 FY 09

Q1 FY 10

Q2 FY 10

Q3 FY 10

Q4 FY 10

Q1 FY 11

Q2 FY 11

Gross Subscriber Base (mn.) Net Subscriber Base (mn.)

Dec. '07 Dec. '08 Dec. '09 March '10 June '10 Sept. '10

Total DTH Subscribers Dish TV Subscribers

Dish TV Market Share

20

Players with large and stable subscriber base to emerge as winners in the long run. Dish TV is well placed being the largest player in the DTH industry.

Key business metrics

Average Revenue Per User (ARPU)

160

240

164150 137 132

142 139 135 138 139 139

Increasing trend – rationalisation back!

Continuous efforts to evolve ARPU levels.

0

80

9 9 9 9 0 0 0 0

`

Subscriber Acquisition Cost (SAC)

Q1

FY 0

9

Q2

FY 0

9

Q3

FY 0

9

Q4

FY 0

9

Q1

FY 1

0

Q2

FY 1

0

Q3

FY 1

0

Q4

FY 1

0

Q1

FY 1

1

Q2

FY 1

1

Focus on reducing subsidies.

S t i i f i

2000

3000 2634 2601 2832 2505 2487 2635 2477 2383 21472083

`

Support coming in from growing incremental market share.

0

1000

FY 0

9

FY 0

9

FY 0

9

FY 0

9

FY 1

0

FY 1

0

FY 1

0

FY 1

0

FY 1

1

FY 1

1

21Source: Company ARPU = (Subscription revenue + activation charges) / Avg. subscribers during the period; SAC = Subsidy on STB+80% of

marketing expenses + Commission to dealers

Q1

F

Q2

F

Q3

F

Q4

F

Q1

F

Q2

F

Q3

F

Q4

F

Q1

F

Q2

F

Driving up ARPUs – marketing initiatives

Silver pack made dormant

22

Silver pack made dormant. Constant marketing initiatives to create better value proposition in higher ARPU packs.

Driving up ARPUs – HD & VAS

23

High Definition & Value Added Services seen as ARPU drivers in the long run.

Financials

24

Encouraging performanceEBITDA M i A lO i R A l

FY 08-10 CAGR 62.0%

EBITDA Margins - Annual

8000

10000

12000

7377

10848

.

Operating Revenues - Annual

0%

20%

FY 07 FY 08 FY 09 FY 10

8.7%

2000

4000

6000

8000

1909

4127

`M

n

80%

-60%

-40%

-20%

-18.3%

EBITDA & EBITDA Margins - QuarterlyOperating Revenues - Quarterly

0FY 07 FY 08 FY 09 FY 10 -100%

-80%

-97%

-53%

2500

3000

3500

2467 25752775

3032 30433261

0 982%6.4% 9.9%

4.8%

13.2% 10.6%15.3%

10%

20%

400

600

Q2

FY 0

9

Q3

FY 0

9

Q4

FY 0

9

Q1

FY 1

0

Q2

FY 1

0

Q3

FY 1

0

Q4

FY 1

0

Q1

FY 1

1

Q2

FY 1

1

0

500

1000

1500

2000

`M

n

-874

-389

42 157

255

134 40

0

322 4 9

2%

40%

-30%

-20%

-10%

0%

0%

600

-400

-200

0

200

00`

Mn

25

0Q1 FY 10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY 11 Q2 FY 11

-50%

-20%

-60%

-50%

-40%

-1000

-800

-600

Fixed content cost driving margins

71% 71% 73%80%3000

71% 71% 73%70%

60%61% 61%

46%6%

59%

54%54% 54%

57%

58% 61%

50%

60%

70%

2000

2500

n

4

319

529

540

588

971 1

023

1086

1150

1298

1437

1638

41%46%

46% 46%43% 42% 39%

29% 29% 27%30%

40% 39% 39%

20%

30%

40%

1000

1500

Su

bs

m

420 502 646 755 804 867 929 670 881 925 986 1,001 1,060 1,062

171 202 234

0%

10%

0%

0

500

Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10

Content Cost Contribution Content Cost (% Subs Revenue)

26

Summary financials

Quarter ended Sept '09 Dec '09 March '10 June '10 Sept '10Gross operating revenue 2575 2775 3032 3043 3261

Expenditure 2344 2659 2683 2721 2763

EBITDA 231 116 349 322 498

Add: Other income 4 11 5 69 25

Less: Depreciation 730 779 846 889 843

EBIT -495 -652 -492 -498 -320EBIT -495 -652 -492 -498 -320

Less: Financial expenses 66 110 106 133 131

PBT -561 -762 -598 -631 -451

Provision for tax 0 0 0 0 0

PAT -561 -762 -598 -631 -451

Operating Metrics Sept '09 Dec '09 March '10 June '10 Sept '10Subscribers added (mn.) 0.41 0.55 0.44 0.64 0.76

SAC (Rs/subscriber) 2635 2477 2383 2147 2083

** Flat QoQ revenue growth in June ‘10 due to discontinuation of HITS operations

( )ARPU (INR) 139 135 138 139 139

27

Flat QoQ revenue growth in June 10 due to discontinuation of HITS operations.

Source: Company Financials. All figures in ` mn. except mentioned otherwise.

Way forward

28

Growth beyond just subscriber numbers

Continuous focus on:

Augmenting

Sustained

product

innovation to

Customer care

Brand building

Expand

revenue

contribution

through

retain

subscribers and

expand

category

Technology

and

customer

base with

focus on

innovative value

added services

category

Distribution

leadership

29

Thank you

30

Questions

31