DISH TV INDIA LIMITEDInvestor Presentation

September 2013 

DISH TV INDIA LIMITEDInvestor Presentation

September 2013 

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.

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Presentation FlowPresentation Flow

Introduction to Dish TV

Key Investment Highlights

Company Strategy and Outlook

Questions & Answers 

A           Associate3

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SECTION 1 

Introduction to Dish TVSECTION 1 

Introduction to Dish TV

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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 with maximum content offering 

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 297.8bn(1)

Source:  Company websites, BSE, MPA Report 2013Note:(1) Market capitalization as on 24th September, 2013

Market Cap: Rs 220 bn(1) Market Cap: Rs 2.7 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 52.5 bn(1) Market Cap: Rs 7.8 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 5.9 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; ~162,000 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*

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Business OverviewBusiness Overview

4.35.7

8.59.6

10.7

02468

1012

FY‐09 FY‐10 FY‐11 FY‐12 FY‐13

Dish TV ‐ Growing Subscriber Base

Source:  Company websites, BSE, MPA Report 2013Note:* Market share based on gross subscribers  as on 30th June, 2013 as per market estimates. * Shareholding pattern as on  23st September, 2013

64%

8% 9% 6%

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 71.3 billion

First Indian DTH player

< 3.0 million

Rs 4,162 million

(Rs 2,095 million)

~ Rs 21.1 billion

2008(1) 2013(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 2013 reflect FY2013 year end results. Customer base as of  March 31, 2013(3)     2008 market capitalization as on March 31, 2008; 2013 market capitalization as on  March 31, 2013

Apr 07:Listing of Equity Shares on NSE and BSE

2004 2005 2012

10.7 million

Rs 21,668 million

Rs 5,795 million (26.7%)

2013

First full year of Positive free cash  flow 

SECTION 2 

Investment HighlightsSECTION 2 

Investment Highlights

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Key Investment HighlightsKey Investment Highlights

• Rapidly expanding industry further buoyed by digitization 

• Rapidly expanding 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

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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

239.1 247.0 254.7 262.3 269.7 276.9 283.9

140.9 147.9 154.9 161.8168.5 175.0 181.4

113.4 122.5 133.0 144.0 154.2 163.5 171.8

0.050.0

100.0150.0200.0250.0300.0

2010 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

Note: 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% 50% 100% 150%

Australia

Hong Kong

Malaysia

Singapore

New Zealand

Japan

Indonesia

Sri Lanka

Korea

India

• Inefficient Analog to addressable Digital.

• Transparency in cable to mitigate industry anomalies.

• Growth for digital platforms in a traditionally analog country.

• Four Phased conversion mandated to be completed by December 2014.

DTH – the synonym for Digital!• Die‐hard analog viewers in for a Digital surprise!

• Phase I ‐ impressive acquisitions by DTH in an erstwhile analog market.

• Phase II ‐ slow but promising.

• Phase III & IV – Key Target Markets with significant upside potential.

• Inefficient Analog to addressable Digital.

• Transparency in cable to mitigate industry anomalies.

• Growth for digital platforms in a traditionally analog country.

• Four Phased conversion mandated to be completed by December 2014.

DTH – the synonym for Digital!• Die‐hard analog viewers in for a Digital surprise!

• Phase I ‐ impressive acquisitions by DTH in an erstwhile analog market.

• Phase II ‐ slow but promising.

• Phase III & IV – Key Target Markets with significant upside potential.

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 

A           Associate13

Superior Product & Service OfferingSuperior Product & Service Offering

Number of channels 

Channels Dish TV Tata Sky Airtel Sun Direct  Reliance Digital Videocon

LINEAR 325 226 291 200 247 288

HD 42* 12 15 8 9 22

FeaturesFeatures

• 25 channels and 17 services• As on 30‐June‐2013

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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

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Growth with ProfitabilityGrowth with Profitability

2,145 

1,828 

 1,600 1,700 1,800 1,900 2,000 2,100 2,200

1QFY13 1QFY14

SAC (Rs.) 

4,556 

5,280 

 4,000 4,200 4,400 4,600 4,800 5,000 5,200 5,400

1QFY13 1QFY14

Subscription Revenue (Rs. Mn.)

28%

19%

13% 8% 19%

13%

Dish TV Tata Sky Sun Direct

Big TV Airtel Digital Videocon D2h

Market Share – FY 13*

29%

18%

14% 8% 19%

12%

Dish TV Tata Sky Sun Direct

Big TV Airtel Digital Videocon D2h

Market Share – FY 12*

650 

 ‐ 100 200 300 400 500 600 700

FY 13

Free Cash Flow (Rs. Mn.)

156 

165 

 150

 155

 160

 165

 170

1QFY13 1QFY14

ARPU (Rs.)

Note: * Based on gross subscribers as per market estimates. FY 12 data as on 31st March, 2012 & FY 13 data as on 31st March, 2013   

SECTION  3

Strategic Focus AreasSECTION  3

Strategic Focus Areas

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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

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

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Focus on eliminating subsidy in the medium term

A           Associate

Reducing Investment per Subscriber… Reducing Investment per Subscriber…

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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 2014

STB Price Hike ‐ SD

…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

4,014 

3,359  3,218 2,939 

 ‐

 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

Investment per subscriber (Rs.)

A           Associate

ARPU ExpansionARPU Expansion

200

255

305

380

220

280320

400

0

50

100

150

200

250

300

350

400

450

Family Super Gold Super World Super Platinum

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

Pack Price Hike ‐ SD

385460

560

399

499

599

0

100

200

300

400

500

600

700

Super HD World Super HD Premiere Super HD Royale

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

Pack Price Hike ‐ HD

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A           Associate

Strategic Focus AreasStrategic Focus Areas

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Value Added Services; alternate and self funded revenue streamsValue Added Services; alternate and self funded revenue streams

Focus on sticky and quality additions than headline subscriber numbersFocus on sticky and quality additions than headline subscriber numbers

Make the most of digitization and drive ARPUsMake the most of digitization and drive ARPUs

Aggressively continue to push HD acquisitions and add further innovationsAggressively continue to push HD acquisitions and add further innovations

Subsidy reduction to generate free cash and expedite break‐evenSubsidy reduction to generate free cash and expedite break‐even

Summary FinancialsSummary Financials

A           Associate21

A           Associate

Summarized P&LSummarized P&L

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Rs. million 

Quarter ended  Quarter ended  % Change  Quarter ended  % Change 

June – 2013  March – 2013  Q o Q  June – 2012  Y o Y

Operating revenues  5,784 5,554 4.1 5,200 11.2

Expenditure  4,567 4,354 4.9 3,644 25.3

EBITDA  1,217 1,200 1.4 1,556 (21.8)

EBITDA  Margin (%) 21.0 21.6 ‐ 29.9 ‐

Other Income  277 157 76.4 205 35.1

Depreciation  1,444 1,450 (0.4) 1,512 (4.5)

Financial expenses  354 343 3.2 572 (38.1)

Profit / (Loss) before tax  (304) (436) ‐ (323) ‐

Provision for tax  0 0 ‐ 0 ‐

Profit / (Loss) after tax  (304) (436) ‐ (323) ‐

A           Associate

Balance SheetBalance Sheet

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Rs. million FY 2013 (Audited) FY 2012 (Audited)EQUITY AND LIABILITIESShareholders’ funds(a) Share capital  1,065 1,064(b) Reserves and surplus  (2,621) (2,002)

(1,556) (939)Non‐current liabilities(a) Long‐term borrowings  8,460 10,193(b) Other long term liabilities 1,504 1,798(c) Long‐term provisions  127 105

10,092 12,097Current liabilities(a) Short‐term borrowings 300 1,950(b) Trade payables  2,138 1,275(c) Other current liabilities 14,027 7,063(d) Short‐term provisions  6,547 4,893

23,012 15,181Total  31,548 26,340

A           Associate

Balance Sheet (continued)Balance Sheet (continued)

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Rs. million FY 2013 (Audited) FY 2012 (Audited)ASSETSNon‐current assets (a) Fixed assets(i)  Tangible assets 14,273 14,160(ii) Intangible assets  67 43(iii) Capital work‐in‐progress 6,535 3,884

20,875 18,088(b) Non‐current investments  ‐ 1,500(c) Long‐term loans and advances 646 348(d) Other non‐current assets  97 69

743 1,917Current assets (a) Current investments  2,782 ‐(b) Inventories  86 69(c) Trade receivables  304 286(d) Cash and bank balances 3,645 3,919(e) Short‐term loans and advances 3,060 1,978(f) Other current assets  53 83

9,929 6,335Total  31,548 26,340

A           Associate25

Thank You