DISH TV INDIA LIMITEDInvestor Presentation

DISH TV INDIA LIMITEDInvestor Presentation

A           Associate

A           Associate

DisclaimerDisclaimer

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 IndiaLimited 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 identifyforward 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 coulddiffer 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 operationalrisks. Dish TV India Limited does not undertake to update these forward‐looking statements to reflect events orcircumstances that may arise after publication.

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 IndiaLimited 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 identifyforward 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 coulddiffer 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 operationalrisks. Dish TV India Limited does not undertake to update these forward‐looking statements to reflect events orcircumstances that may arise after publication.

2

Presentation FlowPresentation Flow

Introduction to Dish TV

Key Investment Highlights

Company Strategy and Outlook

Questions & Answers 

A           Associate3

A           Associate

SECTION 1 

Introduction to Dish TVSECTION 1 

Introduction to Dish TV

4

Introduction to Dish TV India LimitedIntroduction to Dish TV India Limited

Asia‐Pacific’s largest 

Pioneer and largest in India

Only pure‐play listed Indian DTH player

Highest transponder capacity 

Promoted by a leading Indian media group—Essel Group

A           Associate5

Essel Group StructureEssel Group Structure

One of India's largest vertically integrated media and entertainment group, and also one of the leading producers, content aggregators and distributors of Indian programming globally

One of the largest producers and aggregators of Hindi programming in the world

Other Businesses

Essel GroupEssel Group

Media

Launched in 1992

One of India’s largest media and general TV entertainment network

Launched in 1992

Strong presence in national and regional news genre

Founded by Subhash ChandraGroup Market Cap ( Listed entities under Essel Group ): Rs 343.6 bn(1)

Source:  Company websites, BSE, MPA Report 2013Note:(1) Market capitalization as on 28th May, 2014

Market Cap: Rs 259 bn(1) Market Cap: Rs 4.3 bn(1)

Launched in 2005

Asia’s largest DTH service provider

Launched in 2006

One of India’s largest MSO, presence across 54 cities

Daily News & Analysis

Market Cap: Rs 54.8 bn(1) Market Cap: Rs 12.bn(1)

Launched in 2005

English broadsheet daily with presence across Mumbai, Bangalore, Pune, Ahmedabad, Jaipur& Indore

Content Distribution

Launched in 1976, Essel Group is one of India’s largest business houses, with a dominant presence in Media

Zee Entertainment Zee Media Corp. Ltd. Dish TV SITI Cable Network

Packaging (Essel Propack)– Market Cap: Rs 13.5 bn(1)

Theme Parks: Essel World and Water Kingdom 

Playwin: India’s first and largest online gaming company

Cornership: Animation studio Cyquator Technologies: IT Infrastructure 

outsourcing Infrastructure Education Precious Metals Healthy Lifestyle & Wellness

A           Associate6

Leader in DTH service offering with400+ channels and services

Only DTH provider in India to beserviced by two satellites

Pan‐India distribution network; ~170,000 dealers across 8,600+towns

− Over 300+ sales personnel and14 Regional offices

A           Associate

27%

20%

13%7% 19%

14%

Dish TV Tata Sky Sun Direct Big TV Airtel Digital Videocon D2h

Market Share*

7

Business OverviewBusiness Overview

4.35.7

8.59.6

10.7 11.4

02468

1012

FY‐09 FY‐10 FY‐11 FY‐12 FY‐13 FY‐14

Growing Subscriber Base (mn)

Source:  CompanyNotes:* Market share based on gross subscribers  as on 31st March, 2014 as per market estimates. * Shareholding pattern as on  26th May, 2014

65%

8% 11% 3%

13%

PromotersGDRFIIFin. Inst., Banks & MFOther Investors

Shareholding Pattern*

A           Associate8

Key Milestones and PerformanceKey Milestones and Performance

Oct 03:Received license to operate DTH Services

2003 2006 2007 2008 2009 20112010

Growth Trajectory Since Listing

Asia’s Largest DTH ProviderCompany Profile

Net Customer Base

Total Revenues

EBITDA (% margin)

Market Capitalization(3) ~ Rs 54.8 billion

First Indian DTH player

< 3.0 million

Rs 4,162 million

(Rs 2,095 million)

~ Rs 21.1 billion

2008(1) 2014(2)

Jan 09:Rights offering of shares for ~Rs. 11.4 bn.Mar 09:EBITDA breakeven in Q4 FY09Nov 09:Raised $100mn  through GDRs to Apollo for 11% ownership

May 05:Launch of DTH Services 

May 10:Launched HD services

Dec 10:Acquired additional transponders on Asiasat 5

July12:Net subscriber base crosses 10 million

Apr 04:Obtained teleport license from MIB

Source: Company filings, Company website, BSE, NSE, MPA Report 2013Notes:(1)     2008 reflects FY 2008 year end results(2)     Total Revenues and EBITDA for 2014 reflect FY2014 year end results. Customer base as of  March 31, 2014(3)     2008 market capitalization as on March 31, 2008; 2014 market capitalization as on  May 28, 2014

Apr 07:Listing of Equity Shares on NSE and BSE

2004 2005 2012

11.4 million

Rs 25,090 million

Rs 6,241 million (25%)

2013

First full year of Positive free cash  flow 

SECTION 2 

Investment HighlightsSECTION 2 

Investment Highlights

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A           Associate10

Key Investment HighlightsKey Investment Highlights

• Growing industry further buoyed by digitization • Growing industry further buoyed by digitization 11• Superior and differentiated product and service offering combined with robust execution

• Superior and differentiated product and service offering combined with robust execution22

• Growth with Profitability• Growth with Profitability33

A           Associate11

Growing IndustryGrowing IndustryTelevision currently is and is expected to continue to remain the largest component of the Indian Media industry

Indian Media and Entertainment Industry Size

Key Indian Television Market Statistics Cable and DTH Revenues

Composition of Indian Media Industry

Television45.2%

Print28.7%

Film12.8%

Others13.4%

2011

Television50.4%

Print22.2%

Film10.3%

Others17.0%

2016E

13.2 15.016.9

19.622.8

26.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2011 2012E 2013E 2014E 2015E 2016E

6.69.7

1.4

4.2

0.0

5.0

10.0

15.0

2011 2016 EDTH Revenue Cable Revenue

247.0 254.7 262.3 269.7 276.9 283.9

147.9 154.9 161.8 168.5175.0 181.4

122.5 133.0 144.0 154.2 163.5 171.8

0.050.0

100.0150.0200.0250.0300.0

2011 2012E 2013E 2014E 2015E 2016ETotal HHs TV HHs C&S HHs

(mn.)

Source:  M&E size & composition: FICCI‐KPMG 2012 “Digital Dawn”, :  Indian television statistics and cable & DTH revenue: MPA Report 2013

Notes: USD1 = INR 55

(US $ bn

.)

(US $ bn

.)

A           Associate12

The Digitization PushThe Digitization Push

*Source: MPA Report 2013

100% 100% 100% 100% 100% 100% 99% 93%

69%

45%

0%20%40%60%80%

100%120%

• Non‐addressable  Analog to Digital DTH/Cable

• Cable addressability to create level playing field for DTH

• Transparency to push industry ARPUs

• DTH to benefit from premium brand imagery

DTH – the synonym for Digital• Phase I ‐ impressive acquisitions by DTH in an erstwhile 

analog market

• Phase II ‐ slow but promising

• Phase III & IV – Key target markets with significant potential 

upside

• Non‐addressable  Analog to Digital DTH/Cable

• Cable addressability to create level playing field for DTH

• Transparency to push industry ARPUs

• DTH to benefit from premium brand imagery

DTH – the synonym for Digital• Phase I ‐ impressive acquisitions by DTH in an erstwhile 

analog market

• Phase II ‐ slow but promising

• Phase III & IV – Key target markets with significant potential 

upside

Digital penetration of total Pay‐TV subscribers in India is amongst the lowest *

Digital penetration of total Pay‐TV subscribers in India is amongst the lowest *

28.7 32.437.4

43.250.8

57.8

0.0

20.0

40.0

60.0

80.0

2011 2012 2013 2014 2015 2016

DTH Satellite Subscribers (mn.)*

A           Associate13

Introducing Zing - Phases III & IV Introducing Zing - Phases III & IV

Sub Brand of Dish TV

Regional first; regional language channels , 

regional look and feel

Regional first national second; unlike 

mainstream brands which are national 

first and regional second

Customized regional content in digital 

picture quality and stereophonic sound at 

unbelievable prices

Value for money acquisition price.

Higher gross margin.

Sub Brand of Dish TV

Regional first; regional language channels , 

regional look and feel

Regional first national second; unlike 

mainstream brands which are national 

first and regional second

Customized regional content in digital 

picture quality and stereophonic sound at 

unbelievable prices

Value for money acquisition price.

Higher gross margin.

18.0%

8.7%

30.0%

18.4%

1.2%2.6%

12.3%

8.6%

Viewership share by genre – 2013*

Regional GECs,Regional News, Movies & MusicHindi GECsHindi News & MoviesEnglish Entertainment & NewsSportsMusic, Kids & InfotainmentOther

*  FICCI Frames 2014

A           Associate14

Superior Product and Service Offering; DishOnlineSuperior Product and Service Offering; DishOnline

84%81%

78% 80%

71%

US UK Australia China India

Percentage of online population who streamed video *

10%

41%14%

38%76%

21%

2012 2015

PC only

PC andmobile

Mobileonly

Share of Internet use by channel in India #

Source: * Comscore Video Metrix; Jan 2011: # 2010 McKinsey digital consumer survey; McKinsey analysis

81 mn. 450 mn.

Internet users in India to increase fivefold by 2015, with more than three‐quarters choosing mobile access.#Internet users in India to increase fivefold by 2015, with more than three‐quarters choosing mobile access.#

• Enhanced customer stickiness

• ARPU accretive add‐on service

• More than 300 thousand downloads since launch  

• Enhanced customer stickiness

• ARPU accretive add‐on service

• More than 300 thousand downloads since launch  

35 LIVE TV channels & growing…

35 LIVE TV channels & growing… MoviesMovies

ShowsShowsCatch-Up TVCatch-Up TV

A           Associate15

Superior Product & Service OfferingSuperior Product & Service Offering

Number of channels 

Channels Dish TV Tata Sky Airtel Sun Direct  Reliance Digital Videocon

LINEAR 353 290 317 212 248 343

HD 46* 24 19 10 10 27

FeaturesFeatures

• 27 channels and 19 services• As on 7st ‐May‐2014

A           Associate16

Marquee PartnershipsMarquee Partnerships

Transponder / Satellite

State‐of‐the‐art fully automated Broadcast Centre 

Content Security and Customer Data Management

Middleware provider

Strategic partnerships with industry leaders to deliver the highest quality viewing experience

NSS‐6, Asiasat 5NSS‐6, 

Asiasat 5

A           Associate17

Growth with ProfitabilityGrowth with Profitability

1,996 

1,800 

 1,700

 1,800

 1,900

 2,000

 2,100

FY13 FY14

SAC (Rs.) 

19,281 

22,681 

 17,000

 18,000

 19,000

 20,000

 21,000

 22,000

 23,000

FY13 FY14

Subscription Revenue (Rs. mn.)3,127 

 ‐

 500

 1,000

 1,500

 2,000

 2,500

 3,000

 3,500

FY14

Free Cash Flow (Rs. mn.)

158 

170 

 150

 155

 160

 165

 170

 175

FY13 FY14

ARPU (Rs.)

Growing Subscriber Base (mn.)

2.54.3

5.7

8.59.6

10.7 11.4

0.0

2.0

4.0

6.0

8.0

10.0

12.0

FY08 FY09 FY10 FY11 FY12 FY13 FY14

Net subscriber base (mn.)

*FY 13 numbers are based on restated financials

SECTION  3

Strategic Focus AreasSECTION  3

Strategic Focus Areas

A           Associate18

A           Associate

Minimizing SubsidyMinimizing Subsidy

1,640 1,840 

1,999 2,249 

 ‐

 500

 1,000

 1,500

 2,000

 2,500

Before Feb' 13 w.e.f. Feb' 13(First hike)

w.e.f. Feb' 13(Second hike)

w.e.f. July' 13

Offer Price Hike ‐ SD (Rs.)

2,890 

3,099 

 2,750

 2,800

 2,850

 2,900

 2,950

 3,000

 3,050

 3,100

 3,150

Before Feb' 13 w.e.f. Feb' 13

Offer Price Hike ‐ HD (Rs.)

19

Focus on eliminating subsidy in the medium to long term

A           Associate

Reducing Investment per Subscriber.. Reducing Investment per Subscriber..

20

1,640 1,840 

1,999 2,249 

 ‐

 500

 1,000

 1,500

 2,000

 2,500

Before Feb 13 wef. 1st Feb 13 wef. 21st Feb 13 wef. 4th July 2013

STB Price Hike ‐ SD (Rs.) 

…to be further bolstered by price hikes…to be further bolstered by price hikes

Note: Based on cumulative investments, including accumulated losses, per net subscriber

4,055 

3,390  3,218 2,939  2,837 

 ‐

 500

 1,000

 1,500

 2,000

 2,500

 3,000

 3,500

 4,000

 4,500

FY ‐ 10 FY ‐ 11 FY ‐ 12 FY ‐ 13 FY ‐ 14

Dish TV ‐ Investment per net subscriber (Rs.)

A           Associate

ARPU ExpansionARPU Expansion

200255

305380

220280

320400

220300

340421

0

100

200

300

400

500

Family Super Gold Super World Super Platinum

Previous price Revised price (w.e.f. April'13) Revised price (w.e.f. June'14)

Pack Price Hike ‐ SD (Rs.)

385 460560

399499

599

0

200

400

600

800

Super HD World Super HD Premiere Super HD Royale

Previous price Revised price (w.e.f. April'13)

Pack Price Hike ‐ HD (Rs.) 

21

Price hike across packs Price hike across packs 

*Source: MPA Report 2013

0%

20%

40%

60%

80%

100%

0.0% 0.2% 0.4% 0.6% 0.8% 1.0%

Australia

Philippines

Japan

Malaysia New Zealand

Vietnam

Thailand IndonesiaSri Lanka

PakistanChina

India

Korea TaiwanARPU as a % of GDP per HH*

% Pay‐TV Pe

netration/TV

HH

Pay‐TV ARPU as a % of PPP‐adjusted GDP per Household

A           Associate

Faster PaybackFaster Payback

22

138 142151 158

170

0

20

40

60

80

100

120

140

160

180

FY10 FY11 FY12 FY13 FY14

ARPU (Rs.)

ARPU

18

1514

13

11

02468101214161820

FY10 FY11 FY12 FY13 FY14

SAC/ARPU

SAC/ARPU

Summary FinancialsSummary Financials

A           Associate23

A           Associate

Summarized P&LSummarized P&L

24

Rs. millionQuarter ended Quarter ended % Change Quarter ended % ChangeMarch – 2014 Dec. – 2013 Q o Q March. – 2013 Y o Y

Operating revenues 6,369 6,238 2.1 5,554 14.7

Expenditure 5,080 4,784 6.2 4,354 16.7

EBITDA 1,289 1,454 (11.3) 1,200 7.4

EBITDA Margin (%) 20.2 23.3 ‐ 21.6 ‐

Other income 201 97 107.2 157 28.0

Depreciation 1,491 1,534 (2.8) 1,450 2.8

Financial expenses 326 301 8.3 343 (5.0)

Profit / (Loss) before prior period & tax (327) (284) ‐ (436) ‐

Prior period items (1,164) ‐ ‐ ‐ ‐

Tax expense/(write back) ‐ ‐ ‐ ‐ ‐

Net Profit / (Loss) for the period (1,490) (284) ‐ (436) ‐

A           Associate

Balance SheetBalance Sheet

25

Rs. millionFY 2014 (Audited)As at 31 March 2014

FY 2013  (Audited)As at 31 March 2013

EQUITY AND LIABILITIESShareholders’ funds(a) Share capital  1,065 1,065(b) Reserves and surplus  (4,191) (2,621)

(3,126) (1,556)Non‐current liabilities(a) Long‐term borrowings  7,791 8,460(b) Other long term liabilities 918 1,504(c) Long‐term provisions  142 127

8,851 10,092Current liabilities(a) Short‐term borrowings 658 300(b) Trade payables  1,357 2,138(c) Other current liabilities 11,601 14,027(d) Short‐term provisions  8,361 6,547

21,977 23,012Total  27,702 31,548

A           Associate

Balance Sheet (continued)Balance Sheet (continued)

26

Rs. millionFY 2014 (Audited)As at 31 March 2014

FY 2013  (Audited)As at 31 March 2013

ASSETSNon‐current assets (a) Fixed assets(i) Tangible assets 13,495 14,273(ii) Intangible assets  76 67(iii) Capital work‐in‐progress 4,226 6,535

17,797 20,875(b) Non‐current investments  1,500 ‐(c) Long‐term loans and advances 881 646(d) Other non‐current assets  73 97

2,454 743Current assets (a) Current investments  500 2,782(b) Inventories  75 86(c) Trade receivables  415 304(d) Cash and bank balances 3,426 3,645(e) Short‐term loans and advances 3,029 3,060(f) Other current assets  5 53

7,451 9,929Total  27,702 31548

A           Associate27

Thank You