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DISH TV INDIA LIMITEDInvestor Presentation
A Associate
A Associate
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
Presentation 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 TV
4
Introduction 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 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 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 Chandra
Group Market Cap ( Listed entities under Essel Group ): Rs 390.5 bn(1)
Source: Company websites, BSE, MPA Report 2013Note:(1) Market capitalization as on 22nd July, 2014
Market Cap: Rs 287.5 bn(1) Market Cap: Rs 6.5 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 62 bn(1) Market Cap: Rs 17.1 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 17.4 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 with450+ channels and services
Only DTH provider in India to beserviced by two satellites
Pan-India distribution network; ~172,000 dealers across 8,600+towns
− Over 300+ sales personnel and14 Regional offices
A Associate
27%
20%
12%7% 19%
15%
Dish TV Tata Sky Sun Direct
Big TV Airtel Digital Videocon D2h
Market Share*
7
Business Overview
4.35.7
8.59.6
10.7 11.4
0
2
4
6
8
10
12
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 26th May, 2014 as per market estimates. * Shareholding pattern as on 31st March, 2014
65%
8%11%
3%
13%
Promoters GDR
FII Fin. Inst., Banks & MF
Other Investors
Shareholding Pattern*
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Key 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 FY09
Nov 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 Highlights
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Key Investment Highlights
• Growing industry further buoyed by digitization 1
• Superior and differentiated product and service offering combined with robust execution2
• Growth with Profitability3
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Growing 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
13.215.0
16.919.6
22.8
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
122.5 133.0 144.0 154.2163.5
171.8
0.0
50.0
100.0
150.0
200.0
250.0
300.0
2011 2012E 2013E 2014E 2015E 2016E
Total 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
$ b
n.)
(US
$ b
n.)
A Associate12
The 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
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.)*
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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.
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; 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.#
• Enhanced customer stickiness
• ARPU accretive add-on service
• More than 300 thousand downloads since launch
35 LIVE TV channels
& growing…Movies
ShowsCatch-Up TV
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Superior 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 20 10 10 27
Features
• 27 channels and 19 services
• As on 23st -July-2014
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Marquee 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 5
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Growth with Profitability
1,800 1,800
-
500
1,000
1,500
2,000
4QFY14 1QFY15
SAC (Rs.)
5,488
5,886
5,200
5,300
5,400
5,500
5,600
5,700
5,800
5,900
6,000
4QFY14 1QFY15
Subscription Revenue (Rs. mn.)
210
-
50
100
150
200
250
1QFY15
Free Cash Flow (Rs. mn.)
163
170
158
160
162
164
166
168
170
172
4QFY14 1QFY15
ARPU (Rs.)
Growing Subscriber Base (mn.)
2.5
4.35.7
8.59.6
10.711.4
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.)
SECTION 3
Strategic Focus Areas
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Minimizing 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..
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
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.)
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ARPU Expansion
200255
305380
220280
320400
220300
340
421
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.)
385460
560
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
*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
KoreaTaiwan
ARPU as a % of GDP per HH*
% P
ay-T
V P
enet
rati
on
/TV
HH
Pay-TV ARPU as a % of PPP-adjusted GDP per Household
A Associate
Faster Payback
22
138 142151
158170
0
20
40
60
80
100
120
140
160
180
FY10 FY11 FY12 FY13 FY14
ARPU (Rs.)
ARPU
18
1514
13
11
0
2
4
6
8
10
12
14
16
18
20
FY10 FY11 FY12 FY13 FY14
SAC/ARPU
SAC/ARPU
Summary Financials
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Summarized P&L
24
Rs. million
Quarter ended Quarter ended % Change
June – 2014 March – 2014 Q o Q
Operating revenues 6,407 6,369 0.6
Expenditure 4,836 5,080 (4.8)
EBITDA 1,571 1,289 21.9
EBITDA Margin (%) 24.5 20.2 -
Other income 116 201 (42.3)
Depreciation 1,452 1,491 (2.6)
Financial expenses 395 326 21.2
Profit / (Loss) before prior period & tax (160) (327) -
Prior period items - (1,164) -
Tax expense/(write back) - - -
Net Profit / (Loss) for the period (160) (1,490) -
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Balance Sheet
25
Rs. millionFY 2014 (Audited)As at 31 March 2014
FY 2013 (Audited)As at 31 March 2013
EQUITY AND LIABILITIES
Shareholders’ 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 10,092
Current 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 23,012
Total 27,702 31,548
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Balance Sheet (continued)
26
Rs. millionFY 2014 (Audited)As at 31 March 2014
FY 2013 (Audited)As at 31 March 2013
ASSETS
Non-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
2,454 743
Current 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 9,929
Total 27,702 31,548
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Thank You
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