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 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 d i Th d 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 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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About us

•India’s pioneer and Asia Pacific’s largest* DTH company.

•Consistent market leader with 30% absolute share currently.

•Promoted and led by Subhash Chandra, Chairman, Essel G A th ht l d

Asia’s largest DTH Consistent Leader

Group. A thought leader and pioneer in most of his businesses.

Asia s largest DTH Consistent Leader

Promoted by

G R O U P

India’s media pioneer

India’s first & largest, fully integrated, media &

entertainment company.

Having diverse presence across media, packaging, entertainme

nt, technology enabled services, infrastructure

* Ranked by DTH Subs (Y/E Dec. ‘10) – MPA Report 20113

p y,development & education.

Indian DTH industry

4

Journey so far

25 VOLUNTARY DIGITIZATION BY CABLE OPERATORS .

DTH SUBS CROSS20 MN MARK

15

20

MN

DISPUTE OVER CONTENT . SETTLEMENT BTW DISH & STAR

DTH SUBS BREACH THE 2MNMARK IN A 2 PLAYER MKT.

DTH SUBSCRIBERBASE AT ~10 MN

10

15

RIBE

RS IN

M

DIGITIZATION TRIGGRED,CAS MADE MANDATORY IN SELECT PART OF METROS DISPUTE WITH SUN TV

5

SUBS

CR

LAUNCH OF DTH SERVICEBY DISH TV IN SELECTMARKETS

OVER CONTENT. SETTLED.

LAUNCH OFDTH SERVICE LAUNCH OF DTH

LAUNCH OF DTH SERVICE BY VIDEOCONLAUNCH BY

SUN DIRECT

0

BY TATASKYLAUNCH OF RELIANCE BIG TV

LAUNCH OF DTHSERVICE BY AIRTEL

5

DISH Subscribers DTH Subscribers

Opportunities galore!

Key statistics: 2010

246254 261 26876%

82% 86%90% 92% 94% 95%

80%

100%

250

300

Total HHs 232 mn.

TV HHs 141 mn.

TV Penetration 61%

223232 239

246

134 141 148155 162 168 175

102116

127 139149

158 166

20%

40%

60%

80%

50

100

150

200

250

Mill

ion

C&S HHs 116 mn.

C&S Penetration (in TV HHs) 82%

DTH Subs * 36 mn.

0%

20%

0

50

2009 2010 2011E 2012E 2013E 2014E 2015E

Total HHs TV HHs

Increasing TV HHs; likely to be 175 million, 65% penetration, by 2015. Developed countries average penetration at more than 97%. China at 98%.

DTH Subs 36 mn.C&S HHs C&S Penetration

Developed countries average penetration at more than 97%. China at 98%.

C&S penetration: huge opportunity, likely to be 95% by 2015.

DTH to be the key driver & direct beneficiary of increasing C&S households!6

Source: MPA 2011 report C&S implies cable TV, DTH & IPTV* Up to 31/05/11. (Source: market est.)

DTH - growing dominance

708090

1 2 4 57 9 14 20 29

2007-15P, Subscribers (mn.), C.Y. ends

203040506070

69 70 69 68 67 66 64 60 56

1 2 4 5

With analog cable loosing share &

digital not catching up speed…

01020

2007 2008 2009 2010 2011P 2012P 2013P 2014P 2015P

Analog Cable Digital Cable 80Analog Cable Digital Cable

40

50

60

70

80

DTH continues to

2007-15P, Subscribers (mn.), C.Y. ends

0

10

20

30

40

4 1018

3138

4856

6471

..DTH continues to be the biggest contributor to

digitisation

7* Source: FICCI Frames 2011 & market estimates

02007 2008 2009 2010 2011P 2012P 2013P 2014P 2015P

DTH

Poised to be the largest DTH market in the world !

80 80

71 million subscribers by 2015 Poised to be the largest in the World

40

50

60

70

40

50

60

70

80

71

0

10

20

30

40

4 1018

3138

4856

6471

0

10

20

3071

41

21 156.5 4

02007 2008 2009 2010 2011P 2012P 2013P 2014P 2015P

India DTH

India US China UK Latin America

Malaysia

India US China UK Latin America Malaysia

i h h 3 b ib b i dd d di i i d k With more than 3 mn. subscribers being added every quarter, India is poised to overtake the current leader (U.S), which currently adds ~ 1.5 mn. subscribers each year.

8* Source: FICCI Frames 2011, MPA 2011 & Market estimates

Key regulations

Licensing

• Total foreign investment limit of 49% (sub limit ceiling of 20% for FDI) *

• Uplink centre to be in India

• Set-top boxes to be BIS compliantg• License fee at 10% of DTH revenues (favourable TDSAT Order received on 28/05/10 likely to result

in license fee outflow at ~ 4%)

• Initial license validity of 10 years; renewable thereafter

Service quality

• Subscribers can be offered STBs on Rent/Hire-Purchase/Sale

• Mechanism to be in place for handling customer complaints & grievances

Inter-connect

• Broadcasters have to provide content to all distribution platforms; pricing flexible

• Prohibits broadcasters from seeking guarantee for minimum number of subscribers

Reference inter-

connect

• Pricing information on content of the broadcaster

• Maximum 42% of non-CAS cable rates (vide Supreme Court’s interim order dated April ‘11)

9

* As per TRAI’s (Telecom Regulatory Authority of India) recommendation dated 30th June, 2010 to the Ministry of I&B, Foreign Investment Limit for DTH is to be increased to 74%. The recommendation is yet to be approved.

Digitizing with addressability

92%

83%

70%

80%

90%

100%Cable subscription to broadcasers DTH subscription to broadcasters

67%56% 53% 51%

33%

44% 47% 49%

30%

40%

50%

60%

70%

8%

17%

33%

0%

10%

20%

30%

2006 2007 2008 2009 2010 P 2011 P2006 2007 2008 2009 2010 P 2011 P

` mn. Subscription RevenueCable Subscription to Broadcasters 2006 2007 2008 2009 2010 2011P

Subscription Income Paid (Digital + Analogue) 19750 23110 27545 30805 34535 39305

Less: Carriage & Placement Received 5000 6000 12000 13000 13000 13300

Net Subscription Paid 14750 17110 15545 17805 21535 26005DTH Subscription to Broadcasters

Net Subscription Paid 1360 3415 7795 13905 19375 24925

10Source: Mkt. estimates

DTH continues to strengthen its relationship with broadcasters creating a win-win situation for both.

Dish TV – market leader in DTH

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Key strengths

Strong Brand presence and Brand recall.

Brand

Largest subscriber base amongst all six players; currently at 30%.

Market Leadership

Highest number; more than 309 channels & services and growing.

Content

Pan-India presence through 1400 distributors & ~55,000 dealers across 6600 towns N t k g d b 200 l l 8 Z l d 19 R gi l Offi

Selling & Distribution Network

Network managed by over 200 sales personnel. 8 Zonal and 19 Regional Offices.

Sufficient capacity to broadcast increasing number of channels – currently 16 KU

Advanced Infrastructure & Technology

12

p y g yband transponders equivalent.

‘

Largest Bouquet

13

Maximum HD

14

Maximum Regional

15

Select key management personnel

Promoter – Essel Group of Companies. He is thepioneer of the Indian television industry and recipientof numerous honorary degrees, industry awards andcivic honours Profile - Chairman pdf

Subhash ChandraNon Executive Chairman

civic honours. Profile Chairman.pdf

Mr. Goel is the MD of Dish TV since January ‘07 & hasbeen instrumental in establishing it as India’s leadingDTH company. He has also been actively involved inthe expansion of the Essel Group and is an active

Jawahar Lal GoelManaging Director

member on the Board of various committees set up byMIB, Govt. of India for addressing critical mattersrelating to the industry. Profile - MD.pdf

R.C. VenkateishCEO On-board since July ‘10, he was the MD-India & South

Asia, ESPN Star Sports before that. An IIT, IIMAsia, ESPN Star Sports before that. An IIT, IIMGraduate, Venkateish has more than 27 years ofexperience & a successful track record in turningaround businesses & re- defining business processesfor winning brands like Oral-B, Nestle and Kelloggs.Profile - CEO.pdf

S l l Salil KapoorCOO

Rajeev Dalmia

Salil has a work experience of more than 18 years andhas worked with various global corporations includingMicrosoft and Samsung. He is an MBA from DelhiUniversity.

16

Rajeev DalmiaCFO A qualified Chartered Accountant, Rajeev has been

leading the finance department since January, ‘07.

Dish TV – now

17

Asia - Pacific’s largest

18

Market leading share

Dish TV continues to lead with the highest market share amongst all 6 players

16% 9%18%

18%9%

30%

Dish TV Tata Sky Sun Direct

Big TV Airtel Digital Videocon D2h

19Source: Dish TV actual & industry est. (31/05/11)

Consistent leadership

12

10.4

Dish TV – Increasing number of subscribers Dish TV - Market share on total subscriber base

3475%

70%

80%

35

40

8

10

6 46.9

7.5

8.3

9.4

6 26.8

7.7

8.5

20.723

26

30.6

50%

60%

70%

25

30

35

4

65.1

5.55.9

6.4

4.3 4.65

5.35.7

6.2

11.1

18.420.7

6 9 7.5 8.3 9.410.4

42%

35% 33%33% 32% 31% 31%

20%

30%

40%

10

15

20

0

2

Q Q Q2 Q3 Q Q Q2 Q3 Q

3.62.7

4.76.4 6.9 8.3

0%

10%

0

5

Dec. '07

Dec. '08

Dec. '09

Mar. '10

June '10

Sept. '10

Dec. '10

Mar. '11Q4 FY

09Q1 FY

10Q2 FY

10Q3 FY

10Q4 FY

10Q1 FY

11Q2 FY

11Q3 FY

11Q4 FY

11

Gross Subscriber Base (mn.) Net Subscriber Base (mn.)

Source: Dish TV

'07 '08 '09 '10 '10 '10 '10 '11

Total DTH Subscribers Dish TV Subscribers

Dish TV Market Share

20

Players with large and stable subscriber base to emerge as winners in the long run. Dish TV is well placed being the largest player in the DTH industry.

Gaining pricing power

21

Silver pack made dormant. Price increase in three out of five packs.

Driving ARPUs – top down approach

22Multi - tier pricing in HD to enhance ARPUs

Driving ARPUs - through packaging

23

Constant marketing initiatives to create better value proposition in higher ARPU packs.

Key business metrics

Average Revenue Per User (ARPU)

ARPU breaks out of a five quarter flattish

160

132142 139

135 138139 139 142

150

ARPU breaks out of a five quarter flattish trend !

FY11 ARPU at ` 143 compared to `139 for FY10 80

9 0 0 0 0

`

Subscriber Acquisition Cost (SAC)

Q4

FY 0

9

Q1

FY 1

0

Q2

FY 1

0

Q3

FY 1

0

Q4

FY 1

0

Q1

FY 1

1

Q2

FY 1

1

Q3

FY 1

1

Q4

FY 1

1

Higher marketing spends around the 2000

3000 2505 24872635

2477 23832147 2083 2142

2224

` g g pCricket World Cup resulted in marginally higher SAC.

0

1000

FY 0

9

FY 1

0

FY 1

0

FY 1

0

FY 1

0

FY 1

1

FY 1

1

FY 1

1

FY 1

1

24Source: Company ARPU = (Subscription revenue + activation charges) / Avg. subscribers during the period; SAC = Subsidy on STB+80% of

marketing expenses + Commission to dealers

Q4

F

Q1

F

Q2

F

Q3

F

Q4

F

Q1

F

Q2

F

Q3

F

Q4

F

Financials

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Encouraging performanceEBITDA M i A lO i R A l

FY 08-11 CAGR 52.0%

EBITDA Margins - Annual

10000

12000

14000

16000

10848

14365

.

Operating Revenues - Annual

0%

10%

20% 8.7% 16.6%

2000

4000

6000

8000

10000

4127

7377

`M

n

-40%

-30%

-20%

-10% FY 08 FY 09 FY 10 FY 11

-18.3%

EBITDA & EBITDA Margins - QuarterlyOperating Revenues - Quarterly

0FY 08 FY 09 FY 10 FY 11 -60%

-50%

-53%

4000

5000

3031 3043 32613732

4329

20.8%25.0%

9001000

Q1

FY 1

0

Q2

FY 1

0

Q3

FY 1

0

Q4

FY 1

0

Q1

FY 1

1

Q2

FY 1

1

Q3

FY 1

1

Q4

FY 1

1

0

1000

2000

3000

`M

n

0 03

663 90

1

9.9%

4.8%

13.2%

10.6%

15.4%17.7%

10.0%

15.0%

20.0%

300400500600700800

`M

n

26

0Q4 FY10 Q1 FY 11 Q2 FY 11 Q3 FY 11 Q4 FY 11

157 25

5

134

400

323 5

6.4%

0.0%

5.0%

0100200

Content cost vs. subscription revenue

100 100 100 100 100100

120

60

80

126% 115% 110% 78%138%

Amou

nt in

`

38 39 3942

505249

45 46

3940

60

0

20

Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11

ARPU for service charge & FTA channels ARPU for pay channels Content cost per subscriber

27

Percentages represent content cost per subscriber as % of ARPU

Summary financials

Quarter ended March '10 June '10 Sept '10 Dec '10 March '11Gross operating revenue 3031 3043 3261 3732 4329

Expenditure 2631 2720 2758 3069 3428

EBITDA 400 323 503 663 901

Add: Other income 164 277 236 180 188

Less: Depreciation 840 889 843 902 1020

Less: Financial expenses 330 341 342 388 440Less: Financial expenses 330 341 342 388 440

PBT -606 -630 -446 -447 -371

Provision for tax 0 0 0 0 0

PAT -606 -630 -446 -447 -371

Operating Metrics March '10 June '10 Sept '10 Dec '10 March '11Subscribers added (mn.) 0.44 0.64 0.76 1.1 1

SAC (Rs/subscriber) 2383 2147 2083 2142 2224

ARPU (INR) 138 139 139 142 150ARPU (INR) 138 139 139 142 150

28

** HITS operations discontinued w.e.f. 1Q FY11.

Source: Company Financials. All figures in ` mn. except mentioned otherwise.

Thank you

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Questions

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