Dish TV India Limited Investor Presentation Disclaimer Some of the - PowerPoint PPT Presentation

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. 2

Indian M&E Industry Snapshot Broadcasting industry Distribution industry TV industry size (INR bn.) 2020P 733 365 Mu Multiple br broad oadcasters INR 733 Bn Analog 2020 producing content in TV subscription Cable Digital 15 langu guages revenue 38% Cable 2016P CAGR of ~ 15.8% across 407 210 29% (2016-2020P) 7 genres 7 INR 407 Bn beaming 2016 DTH ~8 ~800 chan hannels 2010 TV subscription 194 103 33% revenue Subscription revenues Advertising revenue Indian television market statistics (HHs mn.) 2016 2020 306 284 306 Mn 284 Mn 239 Total households 202 181 173 141 152 181 Mn 202 Mn Total TV households 113 64% 66% TV penetration (of total HHs) 84% 85% C&S penetration (of TV HHS) 2010 2016P 2020P Total HHs TV HHs C&S HHs 3 Source: TV industry size: FICCI-KPMG 2016, Indian television market statistics & broadcasting and distribution industry : MPA Report 2016

Distribution Industry 4

Digital Addressable Systems - DAS Phas hase III III Phas hase I Phas hase IV IV Phas hase II II 7,709 urban areas Delhi, Mumbai, Rest of India 38 notified cities 31-Dec-2015 31-Dec-2016 Calcutta & Chennai 31-Mar-2013 30-June-2012  Bulk of the potential DAS converts  Limited coverage by large MSOs due to dispersed population Cable  Very high DTH recognition  Land grab seeding at throw away prices  DTH best suited considering terrain  No addressability/KYC  Key target markets with more than 60% incremental potential for DTH  Working backwards to fill critical gaps; packaging-billing- dunning  Stayed by multiple High Courts DTH Phase III  No analog switch -off on sunset date  Seeding ground for High-Definition Phas  No spike in demand around deadline  Potential subscribers for upselling – high value packs  Traction seen post deadline due to industry push 5 Source: MPA Report 2016

Distribution Industry - Cable 3 Tie 3 iered St Structure Distributors LCOs MSOs (at least 1 in each (more than ( more than 115 ) locality) 50,000) Pre-DAS  Analog signal - limited carrying capacity, broadcasters jostling for PCS  Placement & Carriage fees - bulk of MSOs top- Post-DAS line  Digital signal - fatter pipe, larger carrying capacity  Massive under declaration – ignored to maintain MSOs ‘reach.’ Reason behind LCOs prosperity  Placement fees mindset No incentive to raise ARPUs  B2B Net billing  100% postpaid. Element of bad debts?  Impairment of Set-Top-Box (STB)?  Rising content cost / content negotiation bottlenecks 6

Distribution Industry - DTH DTH Players in India Dish TV: 2003 Industry pioneer. Started operations in 2003. Part of the ‘Zee’ stable, largest 100% digital producer and aggregator of Hindi programming in the Owns last mile subscribers world TATA Sky: Launched in 2006. JV Subscription driven top-line 2006 between the TATA Group and News Corp Fully prepaid subscription; no bad debts Sun Direct: 2007 Launched in 2007. JV Tax compliant between Sun Network and Astro, Malaysia DTH contributes ~ 60% of the broadcaster’s Relia liance Digit ital: l: domestic subscription revenue; scope for 2008 Part of Reliance rationalization vs. cable (non-discrimination) Communication Ltd, a subsidiary of Reliance ADA Air irtel l Digit ital: l: group Heavily taxed: 2008 Launched in 2008. Part of • License fees – 8% AGR instead of 10% the telecom major Bharti GR (TRAI recommendations on issues Airtel. Videocon D2h 2h: related to new DTH licenses – July`14) Launched in 2009. Part of • Entertainment tax & Service tax - to be the white goods 2009 subsumed post rollout of GST manufacturing Videocon group 7

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Many Firsts To Its Credit First to launch Live TV for First DTH moving vehicles in India 2003 2007 First to achieve operational break-even in the Indian DTH 2009 2009 industry First to negotiate content on a fixed First to fee basis launch High 2010 2010 Definition First to launch First to launch a sub- online TV for DTH brand targeting regional First to launch Home First to be PAT positive First to offer language markets – ‘Zing’ viewers – ‘Dish Video System – DishFlix in the Indian DTH 2012 2012 unlimited Online industry recording 2012 2012 2013 2013 2014 2014 2015 2015 2015 2015 First to be FCF positive in the Indian DTH industry 9

Business Model P&L structure – FY16 3% Dish TV Di TV Indi ndia Li Limi mited 3% Subscription revenues 1%1% Bandwidth income Consolidated Advertising income revenues 100% prepaid Lease rent Other income 92% Upfront subsidy on consumer premises equipment (CPE) Employee benefit expenses 4% 5% Programming and other cost 9% Average ARPU of Rs. 165* Transponder lease Consolidated 28% Other operating costs expenses Churn at 0.7% p.m. 15% Selling and distribution expenses Implied average subscriber life of 12 years Other expenses 5% EBI EBITDA mar argin - 33 33.5% .5% 10 Note: * 1QFY17 ARPU is post netting-off of entertainment tax. ARPU however would have been Rs. 174 without netting of entertainment tax.

Key Metrics - Annual ARPU* (Rs.) Market share # 300 5% 20% 12% 250 16% 174 200 172 21% 163 157 151 150 138 132 150 26% 26% 100 50 Dish TV Tata Sky Sun Direct Big TV Airtel Digital Videocon D2h 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15(R) FY16 Net subscriber base (mn.) Hardware subsidy* (Rs.) 20 2400 2000 14.5 15 12.9 1,465 1600 11.4 10.7 9.6 1,153 8.5 10 1200 5.7 800 4.3 5 400 0 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY15 FY16 11 Source: Company; * ARPU & hardware subsidy taken as Q4 data for respective years. # Market share based on gross subscribers as on 30 th June, 2016 as per market estimates Notes : (R) Restated post netting off of collection charges

Key Metrics - Annual Subscription revenue (Rs. mn.) EBITDA (Rs. mn.) 35,000 12000 10,249 10000 30,000 28,275 7,331 22,681 24,499 8000 6,240 25,000 5,794 4,960 6000 16,639 19,228 20,000 4000 2,380 15,000 11,927 1,117 2000 8,353 10,000 0 5,897 5,000 -2000 (1,233) -4000 - FY09 FY10 FY11 FY12 FY13 FY14 FY15(R) FY16 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Programming and other costs as % of revenues Net profit/(loss) (Rs. mn.) 8500 60% * 6,924 6500 47% 50% 40% 4500 40% 35% 31% 31% 30% 30% 2500 31 28% 30% 500 20% -1500 (660) (1,576) (1,331) 10% (1,920) -3500 (2,622) (4,807) 0% -5500 FY09 FY10 FY11 FY12 FY13 FY14 FY15(R) FY16 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 12 Notes: * Including deferred tax assets of Rs. (4,360) mn. (R) FY15 Subscription revenue is restated, netting off of collection charges

Key Metrics - Quarterly ARPU (Rs.) Subscription revenue (Rs. mn.) Net subscriber additions (mn.) 10000 180 0.6 0.5 8000 0.508 170 0.4 174 6000 173 ^ 7,410 0.402 7,282 0.3 0.389 * 6,828 165 4000 0.2 160 2000 0.1 0 150 0 1QFY16 4QFY16 1QFY17 1QFY16 4QFY16 1QFY17 1QFY16 4QFY16 1QFY17 EBITDA (Rs. mn.) & EBITDA margin Net profit (Rs. mn.) FCF (Rs. mn.) 3000 40.0% 1500 6000 39.0% 38.0% 37.0% 2500 36.0% 34.0% 1200 35.0% 32.6% 4500 # 34.0% 32.0% 4,828 2000 33.0% 32.0% 900 1,047 2,646 2,608 31.0% 2,357 1500 30.0% 3000 29.0% 28.0% 600 27.0% 689 1000 627 26.0% 1500 25.0% # 24.0% 300 500 542 409 23.0% 22.0% 21.0% 0 0 20.0% 0 1QFY16 4QFY16 1QFY17 1QFY16 4QFY16 1QFY17 1QFY16 4QFY16 1QFY17 Notes: * 1QFY17 ARPU is derived post netting-off of entertainment tax from subscription revenue. ARPU of Rs. 174, on a like-to-like basis. 13 ^ Subscription revenue is post netting off of entertainment tax., On a like-to-like basis, subscription revenues were Rs. 7,669 million. # Net profit for 4QFY16 & 1QFY17 includes deferred tax assets of Rs. 4,360 mn. & Rs. 212 mn. respectively. Net profit of 4QFY16 & 1QFY17 is post current tax of Rs. 331 mn. & Rs. 435 mn. respectively.

Strategy and Outlook 14