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DISH TV INDIA LIMITED
Corporate Presentation
Updated on 27-October2009
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Disclaimer
This presentation contains certain forward looking statements. These forward looking statements that include words or phrases such as Dish TV India Limited (the "Company") or its
management believes, expects , anticipates, intends, plans , foresees , or other words or phrases of similar import. Similarly, statements that describe the Companys objectives, plans or
goals also are forward-looking statements. All such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those
contemplated by the relevant forward-looking statement. Such forward looking statements are made based on managements current expectations or beliefs as well as assumptions made by,and information currently available to, management.
Neither the Company nor any of its advisors nor any of their res pective affiliates, shareholders, directors, employees, agents or advisers makes expressed or implied representations or
warranties as to the accuracy and completeness of the information contained herein and neither of them shall accept any responsibility or liability (including any third party liability) for any loss or
damage, whether or not arising from any error or omission in compiling such information or as a result of any party s reliance or use of such information. The information and opinions in this
presentation are subject to change without notice.
This presentation does not constitute a placement document, prospectus or other placement document in whole or in part. This presentation shall not constitute an offer to sell or the solicitation
of an offer to buy any security. There shall be no sale of thesesecurities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under securities
laws of such state or jurisdiction. This presentation must not be distributed to the press or any media organization.
This is for informational purposes only and is not a solicitation of any bid from you or any investor. Nothing in the foregoing shall constitute and/or deem to constitute an offer or an invitation to
an offer, to be made to the Indian public or any section thereof through this document, and this document and its contents should not be construed to be a prospectus in India. This document
has not been and will not be reviewed or approved by any statutory or regulatory authority in India or by any stock exchanges in India. This document does not comply with the disclosure
requirements prescribed by the SEBI or any other applicable authority in relation to a public issue of securities on the Indian stock exchanges.
This document and the contents hereof are restricted for only the intended recipient(s). This document and the contents hereof should not be (i) forwarded or delivered or
transmitted in any manner whatsoever, to any other person other than the intended recipient(s); or (ii) reproduced in any mannerwhatsoever, and in particular, may not be
forwarded to any US person or any address in the United States. Any forwarding, distribution or reproduction of this document in whole or in part is unauthorized. Failure to comply
with this directive may result in a violation of the US Securities Act of 1933, as amended, or the applicable laws of other jurisdictions. The Company or any other parties whose
names appear herein, shall not be liable for any statements made herein or any event or circumstance arising there from.
This document has been made available to you in electronic form. You are reminded that documents transmitted via this medium may be altered or changed during the process of transmission.
In accessing this document, you agree to be bound by the terms and conditions hereof, including any modifications to them any time you receive any information from us as a result of such
access.
This presentat ion is not an offer for sale of securities in the United States. The securities of the Company have not been and will not be registered under the U.S. Secur ities Act of 1933, as
amended (the "Securities Act"). The securities of the Company may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as such term is defined in
Regulation S under the Securities Act) absent registration under the Securities Act or pursuant to an exemption from registration. There will be no public offering of the Company's securi ties in
the United States.
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DTH Industry Overview
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Pay-TV market on a growt h t raj ectory
India TV industry and DTH overview
0% 0% 1%3%
9%13%
17%20 %
22 % 24 %
5 5%59 %
61%64 % 64 % 64 % 64% 6 4 % 63% 6 3 %
0 . 0 %
1 0 . 0 %
2 0 . 0 %
3 0 . 0 %
4 0 . 0 %
5 0 . 0 %
6 0 . 0 %
7 0 . 0 %
2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 00 8 2 0 0 9 p 2 0 1 0 p 2 0 1 1 p 2 0 1 2 p 2 0 1 3 p
% D TH H H t o TV H H % C ab l e H H to T V H HSource: MPA report 2009
Source: MPA report 2009
Increasing TV Penetrat ion
DTH gaining foothold in TV HHs Share in incremental Pay TV HH added
Source: MPA report 2009
India is a large TV market - 129 mm HH in 2008 and expected to grow at a CAGR of 3.4% (2008-13p)
Pay-TV penetration at 73% of TV HH of which only 14% are Digital HH (2008)
Analog is highly fragmented and with limited ability to finance digitization
DTH expected to garner 60% market share of new Pay-TV HH over next 5 years as per MPA 2009estimate
99% 96% 89%
67%
28% 26%18%
9%-5%
-17%
9%
27%
60% 62%63%
62%
63% 61%
4%1%56%
43%29%19%
11%12%7%2%
-20%
0%
20%
40%
60%
80%
100%
2004 2005 2006 2007 2008 2009p 2010p 2011p 2012p 2013p
%
shareofincrementalsubscribers
% Analog Cable TV % DTH % Digital + IPTV
5765
72
82
94
105
115
124131
137
56%59%
62%
67%
73%
77%81%
84%86%
88%
-
25
50
75
100
125
150
175
2004 2005 2006 2007 2008 2009p 2010p 2011p 2012p 2013p
20%
30%
40%
50%
60%
70%
80%
90%
100%
Analog Cable TV DTH Digital + IPTV Pay-TV as a % of Total TV HH
129 136142 148 152
155
106105
104 103100 96
209215
220225 229
233 236239 241 243
103 110116 122
888991
9464%
63%62%60%
59%
56%54%
53%51%
49%
50
75
100
125
150
175
200
225
250
2004 2005 2006 2007 2008 2009p 2010p 2011p 2012p 2013p
NoofHouseholds
inMM
40%
45%
50%
55%
60%
65%
70%
TV HH Non-TV HH TV as of % of Total HHSource: MPA report 2009
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0 01
4
11
18
24
29
34
38
0
10
20
30
40
50
2004 2005 2006 2007 2008 2009p 2010p 2011p 2012p 2013p
No.ofh
ouseholdsinmm
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2004 2005 2006 2007 2008 2009p 2010p 2011p 2012p 2013p
% DTH HH to Tota l HH % DTH HH to TV HH
DTH % of Cabl e HH DTH % of Pay TV HH
DTH exponential market growth
DTH leading the nat ion widedigit izat ion wave
DTH HH increased from 1 mm in 2006to 11 mm in 2008(Source: MPA 2009)
Increased DTH penetration will drivecontinuous growth of DTH HH
Source: MPA report 2009
Source: MPA report 2009
Rapidly growing - DTH Subscr iber base
DTH % of HH s Increasing penetr ati on
CAGR
:20.7%
(2009p
-13p)
Increased competition fueling highgrowth
High end audio-video quality leadingto increased penetration
DTH as a %of TV HH is expected t oincrease t o 24%by 2013 (Source: MPA2009)
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Key industry milestones
-
2
4
6
8
10
12
A
pr-05
Aug-05
Dec-05
A
pr-06
Aug-06
Dec-06
A
pr-07
Aug-07
Dec-07
A
pr-08
Aug-08
Dec-08
Dish TV (mn) DTH HH (mn)
Launch of DTH
Services by Dish TVin select markets
Launch of DTH
Services by Dish TVin select markets
Launch of DTH
Services by Dish TVin select markets
Launch of DTHservices by TataskyLaunch of DTHservices by Tatasky
Dispute overcontent settled
between Dish &Star
Dispute overcontent settled
between Dish &Star
DTH subs breachthe 2 mn markbetween 2 players
DTH subs breachthe 2 mn markbetween 2 players
Dispute overcontent wit h Sun TV
settled
Dispute overcontent wit h Sun TV
settled
DTH subscribe
base at ~10 mnsubs
DTH subscribe
base at ~10 mnsubs
Launch of DTHoperations by
Sun Direct
Launch of DTHoperations by
Sun Direct
Voluntary Digitization
of Cable playersstarted to launchdigit al cable services
Voluntary Digitization
of Cable playersstarted to launchdigit al cable services
Trigger on
Digit izat ion CAS mademandatory in select
parts of metros
Trigger on
Digit izat ion CAS mademandatory in select
parts of metros
Launch of DTHoperations by
Reliance
Launch of DTHoperations by
Reliance
Launch of DTHoperations by
Airtel
Launch of DTHoperations by
Airtel
Subscribers in mm
Source: Dish TV
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Current DTH landscape
Source: MPA report 2009 ; 2: Dish TV estimates
Company
Group Zee Group Tatas Sun TV Reliance ADAG Bhart i
Launch Date2 Oct 03 Aug 06 Jan 08 Aug 08 Oct 08
Subscribers Dec 081 4.5 3.2 2.3 1.1 NA
Ownership2 Public Private Pri vate Division of R.com Division of Bhart i
Technology2 MPEG2 S1 MPEG2 S1 MPEG4 S1 MPEG4 S1 MPEG4 S2
Geographical Spread2 ***** *** ** ** *
Distributors2 ***** *** ** **** *
Pri cing St rategy2 ***** ***** *** ***** *****
Channels tie ups1 225 200 170 200 1502
Services2 40 19 29 54 32
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Industry -Key regulations
Licensing
regulations
Total Foreign investment l imit of 49%wit h a sub limi t of maximum 20%for Foreign Direct Investment
Uplink centre in India
Set -t op boxes have t o be BIS compliant
License Fee at 10%of subscri pt ion revenues (Proposed for 6%under approval)
Initial license validity of 10 years; renewable there after
Inter ConnectRegulation
Content providers have to pr ovide content to all broadcasters; Pricing flexible
Prohibits broadcasters from guaranteeing minimum number of subscribers
Quality of ServiceRegulation
Subscriber t o be off ered STBs on Rental / Hire purchase / Sale
Mechanism to handle cust omer complaints & grievances
Reference Inter connectoffers
Pricing information on content of the broadcaster
Max 50%of Non CAS Cable Rates
A-la-carte offeri ng to be all owed
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DISH Market leader in DTH
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Company Business
Market cap
(US$m)
Revenues
(US$m)
Dish TV (73%) n Indias largest Dir ect to home satel li te distri buti on company 888 153
Zee Enter tainmentEnterpr ise Ltd (42%)
n 22 enter tainment channels covering genres GEC, Movies, Sport s, Music,
Religious, Comedy, Lifestyle 1,575 453
Zee News Ltd (54%) n 11 channels cover ing genres news, business, and regional GECs 204 106
Wire & Wireless IndiaLtd (49%)
n Indias largest Cable distri bution company 87 57
ETC Networks (71%) n Music and regional channels, educati on business 23 14
Dish TV From Indias largest media conglomerate
Note: The %f igures in bracket indi cate shareholding by Mr Subhash Chandra & family; M.Cap as of July 30, 09 ; Revenues as per audit ed state ment s of FY 2009;
Source: Dish TV
Essel Group
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Dish TV - Business model
Up-front subsidy on set top boxes to acquire subscribers
Subscript ion revenues received in advance as per t he chosen plan by subscribers
Other developing revenue streams
Teleport
Movies on demand
A-la carte
Carriage fees
Advertisement
Benefit s of economies of scale to accrue moved from variable payment of content cost to a fixedpayment structure
Focus on improving ARPU, reducing churn and subscriber acquisit ion cost ( SAC )
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Dish TV Key strengths
Largest channel
offering wit hdiversified
content
Largest number of channels offered on DTH platform 240 channels & services (Jun09)
ZEE brand name and content backing ==> One of India s leading media group
Continuous focus on st rong regional content in linguistic zones
Leverage in content tie-ups due to a dominant market leadership position
Sales & Dist r ibut ionnetwork
Pan-India presence through 800 dist ri butors & ~48,000 dealers across6600 towns as of
Jun 09
Network managed by over 200 sales personnel 8 zonal and 9 regional off ices (Jun 09)
~600 Dish Shoppees to provide demo product experience to prospective users as ofJun-09
Incent ive of dealers is per STB sold
Advanced
infrastructure
Suff icient capacit y to broadcast increasing channels current 9 ku band transponders
Model geared to grow in fut ure adding to t ransponder capacit y and technologyupgrade on cards
Heavy capex investment enables to deliver a high end audio-video quality
Market Leadership
Perceived as the indust ry pioneer wit h largest subscriber base
Carried and dist ributed by majorit y third party dist ributors and dealers
St rong Branding wi th consumers
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Dish TV Strategy
Customeracquisition
strategy
Focused market ing leading to creat ion of a BRAND SRK campaign
Largest content offering and digital viewing experience
Aligned dealer incentive structure-Higher incentives for subscriber at
higher packs
Competitive pricing, A-la carte offerings and ease of making payments
Distr ibut ion and aft er sales service
Customerretention
strategy
Promotions and dealer incentives offered on an ongoing basis to retaincustomers through innovative packages
Over 350 Dish Care Centers (DCCs) & service f ranchisees providinginstallation and after sale-service as of Mar-09
In-house call centre, operating 24*7 with capacity of up to 800 operators
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Select key management personnel
Mr. Subhash ChandraNon-Executive Chairman
Mr.Chandra is t he promot er of Essel Group of Companies
His business interests include television networks and film entertainment, cable systems, satellite communications,theme parks, flexible packaging, family entertainment centers and online gaming
Mr. Chandra has been the r ecipient of numerous honorary degrees, industry awards and civic honors, including beingnamed Global Indian Enter tainment Personalit y of the Year by FICCI for 2004, Business Standard s Businessman of
the Year in 1999, Entrepreneur of t he Year by Ernst & Young in 1999 and Enterprise CEO of t he Year byInternational Brand Summit .
Mr. Jawahar Lal GoelManaging Director
Jawahar Lal Goel has been the Managing Director of Dish TV since January 6, 2007
Mr. Goel is been actively involved in t he creation and expansion of Essel Group of Industr ies and has beeninstrumental in establ ishing Dish TV as a prominent DTH brand in India.
He is the president of t he Indian Broadcasti ng Foundation and is an acti ve member on the Board of variouscommittees and task forces, set up by Ministry of Information & Broadcasting.
Mr.Salil KapoorChief Operating Officer
Salil Kapoor has been the Chief Operating Officer since July 2008. He is responsible for sales, marketing, service andoverall supervision of t he zonal off ices of Company.
He has work experi ence of over 18 years in t he industry wit h vari ous global corporati ons including Samsung India Elec.
Ltd. , Microsoft Corp.India (Pvt) Ltd., LG Elect ronics India, Blue Star Limit ed and Fedders Llyod Ltd. Mr. Kapoor holds a bachelor of engineering fr om Bangalore University and MBA from University of Delhi.
Mr. Rajiv KhattarPresident Projects
Raji v Khattar has been the President-Projects of our Company since September 1, 2005. He is responsible f orstrategic tie-ups and technology upgrades of the DTH platform.
Mr. Khattar has an aggregate work experience of 20 years and experience of 12 years in the telecom industry. Prior to
j oining Dish, he worked wit h Reliance Infocom Limited as the President f or Netway.
Mr. Amitabh Kumar
President Technology
Since September 2005 Mr. Amitab Kumar is responsible f or broadcasting operat ions of t he Company
Prior to j oining Dish, he has held various senior posit ions in the Industry incl uding the positi on of the act ing Chairmanand Managing Director of Tata Communicati ons Limit ed (f ormerly known as Videsh Sanchar Nigam Limit ed)
Mr. Kumar has an aggregate work experience of 31 years in the telecom industry and holds a professional certificatein electronic data interchange from All India Management Association and Deakin University, Australia
Mr. Raj eev DalmiaCFO
Mr. Dalmia has an overall work experience of 20 years in the finance industry and is responsible for maintaining
finance and accounts of the company
He is a qualif ied fel low chartered accountant f rom the Insti tut e of Chartered Accountants of India
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DISH TV - Competitive position
3.6
11.1
2.7
4.7
75.7%
42.4%
0
2
4
6
8
10
12
Dec-07 Dec-08
0%
10%
20%
30%
40%
50%
60%
70%
80%
%
Share
Total DTH HH Dish TV HH Dish TV Market Share
Players wi th large and stable subscriber base to emerge as winners in the longrun..Dish TV wel l placed being the largest player in the DTH indust ry
Source: Dish TV Source :Total DTH HH as per MPA report 2009; Dish TV HH Gross Subscribers as per Dish TV
Dish market share on total subscriber baseDish TV Increasing number of subscribers
2.7
3.0
3.4
3.9
4.7
5.1
5.5
5.9
2.2
2.5
2.9
3.4
4.0
4.3
4.6
5.0
2
3
4
5
6
Q3
FY08
Q4
FY08
Q1
FY09
Q2
FY09
Q3
FY09
Q4
FY09
Q1
FY10
Q2
FY10
Gross Subscriber base MM Net Subscriber Base
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Dish TV Financials
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Dish TV - Financials
4127
1909
7377
1,000
3,000
5,000
7,000
9,000
FY 07 FY 08 FY 09
INRMM
-1889
-2196
-1885
-53%
-26%
-99%
-2500
-2000
-1500
-1000
-500
0
FY 07 FY 08 FY 09
-100%
-80%
-60%
-40%
-20%
0%
Source: Audited financials
Source: Published quarterly results
EBITDA - AnnualRevenues - Annual
Aggressive subscriber acquisition coupled with higher margins
Source: Published quarterly results
Source: Audited financials
CAGR: 56.9%
Revenues - Quarter ly EBITDA - Quarterly
1363
1121
16441733
1927
2071
2467 2575
1,000
1,600
2,200
2,800
Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10
INR
MM
-642
-538
-667
-874
-390
145
231
449%
-20%
-50%
-41%-39%
-57%
6%
2%
-1000
-750
-500
-250
0
250
Q3 FY 08 Q4 FY 08 Q1 FY 09 Q2 FY 09 Q3 FY0 9 Q4 FY0 9 Q1 FY10 Q2 FY10
-100%
-80%
-60%
-40%
-20%
0%
20%
L t t t d i i hi h i
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Lower content cost driving higher margins
Source: Company
Contribution margin are steadily improving.. business heading towards
EBIDTA break even
363 420 502 646 755 804 867 929 670 881 925
10871024
319
91171
202
234529 540
588
971
80%
61%
54% 54%
46%46%
71% 71%73%
60% 61%
70%
41%39%40%
30%
27%
29%
29%
20%
59%
39%
0
500
1000
1500
2000
2500
Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09
Subsmn
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Content Cost Cont ribut ion
Content Cost (%Subs Revenue) Contr ibut ion (%Subs Revenue)
454
591704
880
1074 13321407
2012
1517
Dish TV moves
from variable to
fixed price content
cost contracts
1641
1905
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Key business metrics
ARPU
ARPU under pressure wi th increasedcompetition
Rational pricing to prevail as low pricingnot sustainable over long term
Source: Dish TV; ARPU = (Subscription revenue + activation charges) / Avg. subscribers during the period; SAC = Subsidy on STB+80% of marketing exp.+Comm. to dealers
Subscriber acquisition cost
Focus on reducing subsidies Moved t o a
model of charging for a bare box and
un-bundling of the content fees and the
Set top boxes
142
132
137150
164
142
158139
100
110
120
130
140
150
160
170
180
Q3 FY 08 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY 09 Q4 FY09 Q1 FY10 Q2 FY10
INR
2034
1880
26342601
2832
2505 2487
2635
1,000
1,500
2,000
2,500
3,000
Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10
INR
S Fi i l Q t l
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Summary Financials Quarterly
Quarter ended Sep-08 Mar-09 Sep-09
Gross Operati ng Revenue 1,733 2,071 2,575
Expendit ure 2,607 2,027 2,344
EBITDA (874) 44 231
Add: Other Income 10 4
Less: Depreciat ion 495 644 730
EBIT (1,368) (590) (495)
Less: Financial Exps 171 217 66
PBT (1,539) (807) (562)
Provision for Tax 2 2 0
PAT (1,541) (809) (561)
Operating metr ics Jun -08 Mar-09 Sep-09
Subscribers Added (mm) 0.53 0.35 0.41
SAC ( Rs/ sub) 2, 601 2,505 2635
ARPU ( INR ) 150 131 139
Source: Dish TV Earnings rel ease and publi shed quart erl y result s; Amount s in INR MM unless other wi se ment ioned
Investment summary
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Investment summary
Large and growing
DTH market
Subscribers expected to grow f rom c.17m in 2009 to c. 37mm in 2013 (MPA 2009 repor t )
Competi t ion to fuel growth to the DTH indust ry currently only 6 players
Pioneer and leaderof DTH services in
India
Dish TV is the only player in the l isted space in India and has been recognised as a BRAND
First mover advantage ~1 year lead over nearest competi tor and ~ 3 year l ead overothers
Leader in the DTH industry - largest subscri ber base ~ 5.9 mm (Sep-09)
Backed by Zee Group One of India s leading Media group
Full-servicebusiness model
Basic subscri pt ion packs
Value added services
Bandwidth
Teleport services
Large distributionnetwork
Wide reach to 6,600 towns through 800 distributors and 48,000 dealers (Sep 09)
8 Zonal and 9 regional offices (Sep 09)
Largest channel
offering withdiversified
content
240 channels & Servi ces
Content t ie-ups at f ixed rates largest subscriber base to provide economies of scale
Advancedinfrastructure
Only player wi th suff icient capacit y to broadcast increasing channels current 9ku band t ransponders
Model geared to grow in fut ure adding to transponder capacit y and technology
upgrade on cards
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Questions?
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Thank you