1 Dish TV India Limited Investor Presentation 2 Disclaimer Some - - PowerPoint PPT Presentation

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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.

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The Indian TV Industry

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Source: TV industry size: FICCI-KPMG 2017; TV Households and Distribution Industry: MPA Report 2017 Analog Cable 28% Digital

Cable 39%

Mark arket shar share - Dis Distribution Ind ndustry

DTH 33%

2020 2020

INR INR 771 771 Bn. Bn.

TV subscription revenues CAGR of 8% (2017-2020P)

TV Indus Industry ry to

• gai

gain fr from increasin ing TV and and Pay ay -TV pe penetration

Broadcas asting Ind ndustry Multiple broadcasters, having 300 pay channels, 577 FTA channels, producing content in more than 15 languages

Tota tal households (in Mn Mn.) .) Tota tal TV V house seholds s (in Mn Mn.) .) TV penetration (of total HH’s) C&S Penetration (of TV HH’s)

2017 2017 2021 2021

284 284 314 314 181 181 64% 64% 83% 83% 211 211 67% 67% 84% 84% 646 702 821 665 761 920

2017 2018 2020P

TV Industry Size (INR Bn.)

Subscription revenues Advertising revenues

What does TV mean to India?

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Source: Daily Time spent and Daily tune in on TV: BARC; Daily time spent per day with major media: eMarketer

57% 7% 5% 31%

TV Radio Print

• Avg. daily time spent per day with major media by an adult

Digital

Da Daily ly tu tune e in in on

• n TV:

566 566 Mn Mn. . In Individ iduals Da Daily ly Tim ime spent t per r in indivi ividual 03:4 :44:28 (hh:mm:ss)

TV con

• ntin

inues s to

• re

remain the mos

• st

t popu popular for

• rm of
• f entertainment acr

across all all age age grou groups in n the cou

• untry

ry

.. Collective family entertainment

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All India Urban Rural

95% 95% 98% 98% 97% 97%

Percentage of single TV households

Source: Percentage of single TV households: BARC

77% large and affluent joint families have single TV’s, implying co-viewing as as a a con

• nsumption pa

pattern

.. Across age groups

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Source: Share of TV viewership by, and across age groups: BARC

Share of TV viewership universe across age groups

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 51+ yrs 41-50 yrs 31-40 yrs 15-30 yrs 2-14 yrs

2017 2016

22% 22%

Share of TV viewership universe by age groups (in Mn. impressions)

Con Contrary to

• popu

popular perc percepti tion, the you youth con

• ntrib

ibutes s a a mass massiv ive 33% 33% sha share of

• f TV

V vie viewership, , and and has has see seen a a gr growth th of

• f 22%

22% in n impressio ions ove ver the ye year

20% 33% 17% 14% 16% Adults (31-40 yrs) Youth (15-30 years) Mature 41-50 years Kids (2-14 years) Senior (>50 years)

And that is Despite increasing internet penetration

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Source: Broadband subscribers: TRAI Subscription Report, December 2017; TV viewership impressions: BARC

20% growth in overall TV viewership All India internet penetration- 30%

2000 4000 6000 8000 10000 51+ yrs 41-50 yrs 31-40 yrs 15-30 yrs 2-14 yrs Increasing TV viewership (in Mn. impressions) 2017 2016 40.7 70.4 120 218 345 14.5 15.3 16.5 18.1 17.9

50 100 150 200 250 300 350 400

Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Broadband subscribers (in Mn.) Wireless broadband subs (mn) Fixed broadband subs (mn)

Pay ay -TV and and di digital l OTT ser services s to

• rem

remain com

• mplementary

ry scr screens, , wit ith both both gro growin ing ind ndiv ividuall lly and and co co-existin ing

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The Pay - TV Industry

An overview of the Pay - TV industry

TV V hou households 181 Mn. Pay -TV TV 150 Mn. Cab Cable Sub Subs 101 Mn. DTH Su Subs 49 Mn. Non

• n - Pay

31 Mn. Fr Free Di Dish 22 Mn.

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28% 72% 7% 22% 78% 11%

2022

Analog Digital HD Digital

2017

Source: TV households and Pay - TV distribution by platform: MPA Report 2017; Free Dish subscriber base: M&IB Annual Report, 2018

The ons

• nset of
• f di

digitization brou brought abou about grea greater dem demand for

• r qua

quali lity TV vie viewin ing, wit ith ac access s to

• ple

plethora of

• f chan

channels ls

Pay - TV distribution by platform (as a percentage of C&S HH’s)

Asymmetry in the Pay - TV Industry

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Source: Net additions and content cost: MPA Report 2017

Abys ysmally ly low con

• ntent cos
• st

t per per sub subsc scriber per per mon

• nth in

n cab able le is s an an ARPU RPU dam dampener for

• r the entir

ire Pay ay - TV ind ndustr try

DTH maximized Digitization (initiated in 2012) to its advantage. Majority of cable additions were conversion from Analog to Digital Despite having only a 32% market share, DTH contributes >53% of subscription revenues earned by broadcasters

Subscribers (in Mn.) 2011 2012 2013 2014 2015 2016 2017 2018P

Net new additions by DTH 7.3 4.1 3.6 3.9 3.0 3.5 3.7 4.0 New digital additions by Cable 1.1 9.6 13.3

• 1.5

9.7 13.5 10.2 6.9 Out of Which Analog seeding 0.0 7.6 11.5 0.0 8.2 12.1 9.0 5.8 Net new additions by Cable 1.1 2.0 1.9

• 1.5

1.6 1.4 1.3 1.2 % of new additions by DTH 87% 67% 66% 161% 65% 72% 75% 78% % of new additions by Cable 13% 33% 34%

• 61%

35% 28% 25% 22%

Cable DTH Subscriber market share (%) 67% 33% Content cost (INR Mn.) 50,938 56,982 Contribution towards subscription revenues of broadcasters 47% 53%

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The Gl Global OTT phe phenomenon

1,439 1,131 1,064 997 103 DirecTV Charter Dish Comcast Netflix Annual cost of Netflix 1/10th of Pay -TV cost in the US Annual ARPU (USD) -2016 80 54 30 11 8 8 11 7 8 6 USA Australia Sweden Mexico Nigeria Low cost of OTT vs Pay -TV drove adoption Pay TV monthly ARPU Netflix monthly fee

Source: Cost of OTT vs Pay –TV: Digital TV Research; Annual cost of Netflix of Pay – TV cost in US: Marymaker Internet Trends Report 2017

Lo Low OTT cos

• sts

ts com

• mpared to
• tra

raditional Pay ay -TV pl platforms, , as as wel ell as as hi high fix fixed br broa

• adband pe

penetration led to

• hi

high gher adop adoption of

• f OTT con
• ntent gl

globall lly

Addressing the elephant in the room - OTT

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The India India excepti tion

500 260 299 Netflix Cable Pack DTH Basic packs Pricing (per month) of OTT services vis-à-vis cable and DTH

India is an exception to the global OTT phenomenon, with higher cost of OTT vs Pay -TV

80 54 30 11 8 2 8 11 7 8 6 8 USA Australia Sweden Mexico Nigeria India Pay TV monthly ARPU Netflix monthly fee

Source: Cost of OTT vs Pay –TV: Digital TV Research; Pricing of OTT services vis-à-vis Cable and DTH: Market Estimates;

Or is it really the elephant?

Hig High OTT streaming cos

• sts

ts cou

• uld be

be a a majo ajor hi hind ndrance whe hen it t com

• mes to
• OTT pro

proli liferation. . Da Data usag usage per per hour hour of

• f SD

SD and and HD HD vie viewin ing is s 1 1 and and 3 3 GB GB re respectiv ively

Cost of OTT vs Pay -TV per month (in USD)

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Preference for wired broadband

Amazon Video 4% iTunes 3% Hulu 3% Other 25% Xbox One 2% Facebook 2% Bit-Torrent 2% HTTP/SSL - Other 7% Netflix 34% YouTube 18%

Fixed broadband usage pattern

Fix Fixed broa broadband is s the pr preferred medium gl globally ly to

• stream OTT con
• ntent

98% 94% 90% 88% 88% 78% 76% 73% 71% 57% 7%

Fixed broadband penetration (percentage of households)

The Gl Global OTT cons

• nsumpti

tion pat pattern

Source: Fixed broadband penetration- FCC (USA) - 2016, Eurostat (Europe) – 2017; Fixed broadband usage pattern- Sandvine Global Internet Phenomena Report 2016

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Netflix, 4% iTunes, 3% Google Cloud, 3% HTTP/SSL -Other, 16% Other, 27% YouTube, 21% Facebook, 14% Instagram , 7% Snapchat, 5%

Mobile internet usage pattern

Mobile access used to watch snacking, short duration content

Lo Low broa broadband spe speeds s and and dat data usag usage pa patterns sugg suggest tha hat mob

• bile phon

phone will ll al always be be a a sec secondary scr screen aft after TV

39.2 32.4 31.5 22.9 19.5 13 1.4

UK USA Japan China Russia Brazil India

The India Indian pa pattern

Average connection speed (In Mbps)

Source: Average connection speed- Akamai Technologies- State of Internet Connectivity; Mobile internet usage pattern- Sandvine Global Internet Phenomena Report 2016

.. The India exception

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1 + 1 = 11

Consolidation to lead to value creation

17 Dish TV- Videocon 37% Tata Sky 27% Airtel 23% Sun Direct 11% Reliance 2% Market Share (% of net subscribers)

Source: Market share: TRAI Data, December 2017

Hig Higher mar arket shar share of

• f the com
• mbin

ined en entity to

• cr

create syn ynergies A com

• mbined entity with

th a a si sign gnificant pres presence acr across ss India India

Value creation through synergies

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Le Leveraging strengths of

• f

each com

• mpany

Cos Cost and and fi financia ial syn ynergies Revenue syn ynergies Adop doptin ing bes best pra practis ises

Identifying the strengths of each brand

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High top of the mind brand recall Value for money offerings Deep penetration in tier 2 and beyond markets High brand loyalty in trade circles Premium segment offerings like 4K Reasonable presence in urban markets Popular in regional content markets Tailor made packages for regional audiences Presence in key vernacular markets like Orissa and West Bengal

Co Co-existence of

• f all

all three bran brands s to

• tar

arget a a hi higher mar arket shar share while hile main aintain ining hea healthy com

• mpetitio

ion and and syn ynergy in n bac backend

• pe
• perations

Adopting best practises- Customer service

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1 million home visits every month by field service

Fas aster, , Be Better and and Eff ffic icient Serv Servic ice mod

• del buil

built on

• n a

a ser service inf nfrastr tructure no no ot

• ther DTH pl

player can an mat atch

Adop Adoptio ion of

• f the

the company owne wned ser ervic ice mo model l for

• r the

the en entir ire en entit ity

More than 4,000 distributors and around 400,000 dealers Mobile App for subscribers Call centres across India supported by a large no. of agents Targeting more than 450 owned service centres and 5,500 company technicians

Adopting best practises - Backend and IT Operations

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IVR for faster response Optimising AHT for better customer experience Cross utilising critical infrastructure for synergies Inbound/outbound swap

Syn ynergisin ing bac backend ope

• perations to
• re

reap lon

• ng term ben

benefits and and fas aster tur urnaround tim ime for

• r cus

customer re resolutions

Revenue synergies

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Tar argetin ing brands

Mon

• netis

isin ing da data for

• r

tar target etin ing br bran ands Reverse Data Path th for

• r

und understandin ing cus ustomer pr preferences

Advertis ising syn ynergies VAS S syn ynergie ies

Focu

• cus on
• n en

enterin ing into

• con
• ntent par

partnership ip, and and enh enhancin ing g VAS AS busin business by y leveraging pr prog

• gramming and

and pr prom

• motions on
• n bo

both th pla platfor

• rms

Revenue syn ynergies s by y harn harnessin ing cus customer da data ana analy lytic ics, , and and usi using tar argeted prog programmin ing con

• ntent

Cost and financial synergies

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Re Re-bala lancin ing tr transponder capacit ity Opti timising content payout Minimising borrowing costs Leveragin ing sc scale le for r better negotia iatio ions

Cost and financial synergies

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Entering the New Era

Reinvigorating the new entity

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#JeetoSaareHeart

New leadership mix comprising of select professionals from both entities Separate sales teams with uniform structures Fresh campaigns and branding initiatives Taking the lead in the industry with new customer centric packs- Mera Apna Pack

The beginning of the transformation into India’s most loved DTH brand!

Sharper customer focus with High Definition

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* Exclusive of taxes

Dish TV HD Add-Ons English Club HD @ 106* All Sports HD @ 84* Maxi Sports HD @ 64* Sports HD South @ 84* All Sports HD South @ 102*

Sh Sharper th than ever focu

• cus on
• n bo

boos

• stin

ing HD HD acq acquis isit itio ion and and rech echarges by y ma maxim imis isin ing com

• mbin

ined she helf lf and and retail il visib ibil ilit ity En Encou

• uragi

ging HD HD sampli ling g thr throu

• ugh

ec econ

• nomic

ical, mus must-have HD HD bo bouq uquets

Foc

• cussin

ing on

• n Hig

High De Definitio ion off

• fferings acr

across s bran brands to

• re

result in n grea greater ARP RPU ac accretio ion

Lau aunch of

• f ne

new HD D com

• mpliant

STB’s that would be more ec econ

• nomic

ical tha than the the existin ing STB’s

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Financials

Annual performance metrics

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Dish TV India Limited’s first set of merged financials

Combined subscriber base of 23 million EBITDA margin – 28.4% # Operating revenues* INR 62,377 Adjusted EBITDA & Margin* INR 19,690 31.6% ARPU INR 201

91%

3% 3% 1% 2%

Subscription revenues Bandwidth income Advertising income Lease rent Other income

Consolidated revenues

36% 18% 5% 13% Programming and other costs Other operating expenses(excl.

• prog. & other costs)

Employee benefit expenses Other expenses (including S&D expenses)

Consolidated expenses

P&L structure – FY18

• * Presuming FY 18 financials represented 12 months each of Dish TV and d2h.
• * Adjusted EBITDA is EBITDA adjusted for merger expenses to the tune of Rs. 840 million booked in FY18 that have been excluded while calculating Adjusted EBITDA
• # Merged financials for FY18 basis 12 months of Dish TV and 6 months of d2h

Year ended Year ended INR Million

• Mar. – 2018
• Mar. – 2017

Operating revenues 46,342 30,144 Expenditure 33,181 20,464 EBITDA 13,160 9,680 EBITDA margin (%) 28.4 32.1 Other income 542 615 Depreciation 10,717 6,908 Financial expenses 3,964 2,292 Profit / (Loss) before tax (979) 1,095 Current Tax Current Tax-prior period Deferred Tax 53 (30) (166) 982 (708) Deferred Tax- prior period 13

• Net Profit / (Loss) for the period

(849) 821

FY FY 2018 2018 vs.

• s. FY

FY 2017 2017

Operating revenues break-up (INR Mn.) FY 2018

Summarized Consolidated P&L

42,167 1,225 1,375 670 905 Subscription revenues Lease rentals Bandwidth charges Advertisement income Teleport services, CPE & Other

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Financials of Dish TV India Limited for the year ended March 31, 2018 represent 12 months financial performance of Dish TV India Limited and 6 months financial performance of Videocon d2h Limited

Quarter ended Quarter ended INR Million March 2018 March 2017 Operating revenues 15,324 7,085 Expenditure 11,317 5,108 EBITDA 4,006 1,978 EBITDA margin (%) 26.1 27.9 Other income 127 238 Depreciation 3,471 1,815 Finance cost 1,329 585 Profit / (Loss) before tax (667) (184) Tax expense:

• Current Tax
• Current Tax-prior years
• Deferred Tax
• Deferred Tax- prior years

(378) (1,471) 122

• (11)
• Net Profit / (Loss) for the period

1,182 (295)

4QF 4QFY 2018 2018 vs.

• s. 4QF

4QFY 2017 2017

Operating revenues break-up (Rs. mn) 4QFY 2018

Summarized Consolidated P&L - Quarterly

13,771 346 489 204 514 Subscription revenues Lease rentals Bandwidth charges Advertisement income Teleport services, CPE & Other

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INR Million March 2018 (Audited) Equity and liabilities Equity (a) Equity share capital 1,841 (b) Other equity 65,700 (c) Non-controlling interest (181) Liabilities (1) Non-current liabilities (a) Financial liabilities (i) Borrowings 17,949 (ii) Other financial liabilities 526 (b) Provisions 408 (c) Other non-current liabilities 1,214 (2) Current liabilities (a) Financial liabilities (i) Borrowings 4,532 (ii) Trade payables 6,702 (iii) Other financial liabilities 14,490 (b) Other current liabilities 10,802 (c) Provisions (d) Current tax liabilities (net) 27,886 Total Equity & Liabilities 1,51,871

Consolidated Balance Sheet

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INR Million March 2018 (Audited) Assets (1) Non-current assets (a) Property, plant & equipment 36,338 (b) Capital work in progress 6,781 (c) Goodwill 62,754 (d) Other intangible assets 22,757 (e) Investment accounted for using the equity method (f) financial assets (i) Investments 1,500 (ii) Loans 153 (iii) Other financial assets 360 (g) Deferred tax assets (net) 6,026 (h) Non-current tax assets (net) 1,077 (i) Other non-current assets 1,931 (2) Current assets (a) Inventories 380 (b) Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Loans (vi) Other financial assets (c) Other current assets 1,460 3,020 2,610 65 317 4,340 Total assets 1,51,871

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Annexure

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 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 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 Dr. Subhash Chandra Group Market Cap ( Listed entities under Essel Group ): Rs 752.9 bn(1)

Source: Company websites, BSE, MPA Report 2016 Note: (1) Market capitalization as on 14th May, 2018

Market Cap: Rs 548.1 bn(1) Market Cap: Rs 15.9 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 131.9 bn(1) Market Cap: Rs 14.94 bn(1) Launched in 2005 English broadsheet daily with presence across Mumbai, Bangalore, Pune, Ahmedabad, Jaipur & Indore

Content Distribution

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

 Packaging (Essel Propack) – Market Cap: Rs 42.12 bn(1)  Theme Parks: Essel World and Water Kingdom  Playwin: India’s first and largest

• nline gaming company

 Cornership: Animation studio  Cyquator Technologies: IT Infrastructure outsourcing  Infrastructure  Education  Precious Metals  Healthy Lifestyle & Wellness

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

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Thank You

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