Dish TV India Limited · PDF fileTATA Sky: world Launched in 2006. JV between the TATA Group and News Corp Sun Direct: Launched in 2007. JV between Sun Network and Astro, Malaysia

Dish TV India LimitedInvestor Presentation

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.

Disclaimer

2

INR 733 BnTV subscription revenue

INR 407 BnTV subscription revenue

66%TV penetration (of total HHs) 64%

C&S penetration (of TV HHS)

Indian M&E Industry Snapshot

2016

2020

239 284

306

141 181 202

113 152

173

2010 2016P 2020P

Total HHs TV HHs C&S HHs

Indian television market statistics (HHs mn.)

Source: TV industry size: FICCI-KPMG 2016, Indian television market statistics & broadcasting and distribution industry : MPA Report 2016

2016 2020

Total households

84% 85%

CAGR of ~ 15.8% (2016-2020P)

306 Mn284 Mn

Total TV households 202 Mn181 Mn

Distribution industry

DTH33%

Analog Cable38%

DigitalCable29%

Broadcasting industry

Multiple broadcastersproducing content in

15 languagesacross

7 genresbeaming

~800 channels

3

194

407

733

103

210

365

2010

2016P

2020P

TV industry size (INR bn.)

Subscription revenues Advertising revenue

Distribution Industry

4

Digital Addressable Systems - DAS

Source: MPA Report 2016

Phase IDelhi, Mumbai,

Calcutta & Chennai30-June-2012

Phase II38 notified cities

31-Mar-2013

Cable Land grab seeding at throw away prices

No addressability/KYC

Working backwards to fill critical gaps; packaging-billing-dunning

DTH Seeding ground for High-Definition

Potential subscribers for upselling – high value packs

Bulk of the potential DAS converts

Limited coverage by large MSOs due to dispersed population

Very high DTH recognition

DTH best suited considering terrain

Key target markets with more than 60% incremental potential for DTH

5

Phase IVRest of India31-Dec-2016

Phase III7,709 urban areas

31-Dec-2015

Stayed by multiple High Courts

No analog switch -off on sunset date

No spike in demand around deadline

Traction seen post deadline due to industry push

Ph

ase

III

Distribution Industry - Cable

Analog signal - limited carrying capacity, broadcasters jostling for PCS

Placement & Carriage fees - bulk of MSOs top-line

Massive under declaration – ignored to maintain MSOs ‘reach.’ Reason behind LCOs prosperity

No incentive to raise ARPUs

Digital signal - fatter pipe, larger carrying capacity

Placement fees mindset

B2B Net billing

100% postpaid. Element of bad debts?

Impairment of Set-Top-Box (STB)?

Rising content cost / content negotiation bottlenecks

3 Tiered Structure

MSOs(more than 115 )

Distributors (at least 1 in each

locality)

LCOs (more than

50,000)

Pre-DAS

Post-DAS

6

Dish TV:Industry pioneer. Started operations in 2003. Part of the ‘Zee’ stable, largest producer and aggregator of Hindi programming in the worldTATA Sky:

Launched in 2006. JV between the TATA Group and News Corp

Sun Direct:Launched in 2007. JV between Sun Network and Astro, Malaysia

Reliance Digital:Part of Reliance Communication Ltd, a subsidiary of Reliance ADA group Airtel Digital:

Launched in 2008. Part of the telecom major Bharti Airtel.Videocon D2h:

Launched in 2009. Part of the white goods manufacturing Videocon group

Distribution Industry - DTH

2003

2006

2007

2008

2009

100% digital

Owns last mile subscribers

Subscription driven top-line

Fully prepaid subscription; no bad debts

DTH contributes ~ 60% of the broadcaster’s domestic subscription revenue; scope for rationalization vs. cable (non-discrimination)

Heavily taxed:• License fees – 8% AGR instead of 10%

GR (TRAI recommendations on issues related to new DTH licenses – July`14)

• Entertainment tax & Service tax - to be subsumed post rollout of GST

Tax compliant

2008

7

DTH Players in India

8

Many Firsts To Its Credit

9

2007

2009

2010

2012

2012

201320142015

2003

2015

First DTH in India

First to negotiate content on a fixed fee basis

First to launch Live TV for moving vehicles

First to achieve operational break-even in the Indian DTH industry

First to launch High Definition

First to offer unlimited recording

First to be FCF positive in the Indian DTH industry

First to launch online TV for DTH viewers – ‘Dish Online

First to launch a sub-brand targeting regional language markets– ‘Zing’

First to be PAT positive in the Indian DTH industry

First to launch Home Video System–DishFlix

92%

3%

3%

1%1%

Subscription revenues

Bandwidth income

Advertising income

Lease rent

Other income

Consolidated revenues

4%

28%

5%

15%

9%

5%

Employee benefit expenses

Programming and other cost

Transponder lease

Other operating costs

Selling and distribution expenses

Other expenses

Consolidated expenses

100% prepaid

Upfront subsidy on consumer premises equipment

(CPE)

Average ARPU of Rs. 165*

Churn at 0.7% p.m.

Implied average subscriber life of 12 years

Dish TV India Limited

Business Model

10

P&L structure – FY16

EBITDA margin - 33.5%

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

Source: Company;

Notes : * ARPU & hardware subsidy taken as Q4 data for respective years. # Market share based on gross subscribers as on 30th June, 2016 as per market estimates

(R) Restated post netting off of collection charges

132 138 150 151 157 163 172 174

0

50

100

150

200

250

300

FY09 FY10 FY11 FY12 FY13 FY14 FY15(R) FY16

ARPU* (Rs.)

26%

21%

12%5% 20%

16%

Dish TV Tata Sky Sun Direct Big TV Airtel Digital Videocon D2h

Market share #

1,465

1,153

0

400

800

1200

1600

2000

2400

FY15 FY16

Hardware subsidy* (Rs.)

4.3 5.7

8.5 9.6

10.7 11.4 12.9

14.5

0

5

10

15

20

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Net subscriber base (mn.)

11

Key Metrics - Annual

Notes: * Including deferred tax assets of Rs. (4,360) mn.

(R) FY15 Subscription revenue is restated, netting off of collection charges

(1,233)

1,117 2,380

4,960 5,794 6,240

7,331

10,249

-4000

-2000

0

2000

4000

6000

8000

10000

12000


EBITDA (Rs. mn.)

47%

40%35%

31% 30% 31% 30% 28%

0%

10%

20%

30%

40%

50%

60%


5,897 8,353

11,927

16,639 19,228

22,681 24,499

28,275

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000


Subscription revenue (Rs. mn.)

Programming and other costs as % of revenues

(4,807) (2,622)(1,920) (1,331)

(660) (1,576)

31

6,924

-5500

-3500

-1500

500

2500

4500

6500

8500


Net profit/(loss) (Rs. mn.)

12

*

Key Metrics - Quarterly

0.389

0.508

0.402

0

0.1

0.2

0.3

0.4

0.5

0.6

1QFY16 4QFY16 1QFY17

Net subscriber additions (mn.)

173 174

165

150

160

170

180


ARPU (Rs.)

6,828 7,410 7,282

0

2000

4000

6000

8000

10000


Subscription revenue (Rs. mn.)

2,357 2,608 2,646 32.0% 32.6%

34.0%

20.0%21.0%22.0%23.0%24.0%25.0%26.0%27.0%28.0%29.0%30.0%31.0%32.0%33.0%34.0%35.0%36.0%37.0%38.0%39.0%40.0%

0

500

1000

1500

2000

2500

3000


EBITDA (Rs. mn.) & EBITDA margin

542

4,828

409

0

1500

3000

4500

6000


Net profit (Rs. mn.)

689

1,047

627

0

300

600

900

1200

1500


FCF (Rs. mn.)

13Notes: * 1QFY17 ARPU is derived post netting-off of entertainment tax from subscription revenue. ARPU of Rs. 174, on a like-to-like basis.

^ 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

DAS Phase III & IV

Zing Digital

15

Specific vernacular markets ‘Zing’

Set-Top-Boxmatlab DishTV

Dish99Packs starting @ just ₹ 99

MANDATORY subscription to a minimum 3 of the above mentioned add-on packs on subscribing to

Dish 99

Any of the Family add-on packs @ ₹ 25 each p.m.

Any of the Sports add-on packs @ ₹ 50 each p.m.

Any of the English add-on packs @ ₹75 each p.m.

Across phase III & IV markets ‘Dish 99’

Regional first; regional language channels , regional look and feelFTA channels + any 3 of Family / Sports / English

OR

OR

Easy transition for first time digital subscribers

Value for money offering; digital quality picture at the price of cable

Customized content in digital quality

Healthy margins

+

ARPU driver

Key differentiator vis-

à-vis cable

HD ADD-ONS

Game on HD @ Rs. 165

(Sports and Hindi entertainment)

Full on HD @ Rs. 220

(Complete dose of entertainment)

Dish TV Tata Sky Videocon D2h

Sports ChannelsNew Super Family +

Game on HDDhamal Mix + HD

Access FeeGold Maxi+ HD

Access Fee

Rs. 435 Rs. 425 Rs. 455

Star Sports HD1 √ X X

Star Sports HD2 √ √ √

Star Sports HD3 √ √ X

Star Sports HD4 X X X

Sony Six HD √ X X

Ten 1 HD √ X X

High Definition

Source: Market data as on 31st March 2016

16

Hindi GEC

Hindi Movies & Music

Sports HD

Infotainment, Lifestyle & Kids

English Entertainment

English Movies

HD South

Box Cost Rationalization

HI-DEFINITION SACHETS STARTING AT Rs. 75 EACH PER MONTH

42, 62%22, 33%

4, 5%

DTH revenue IPTV revenue Cable TV revenue

225

1,117

1,570

168

800

1,105

31 62 120 27 255 345

- 200 400 600 800

1,000 1,200 1,400 1,600 1,800

2010 2016P 2020P

Pay TV Subs DTH Subs Cable Subs IPTV Subs

International Expansion - Sri Lanka

Sri Lanka

Population ~ 21 million

TV penetration at 80%

High digital penetration; 95% of total Pay TV subscribers

DTH maintains dominance with ~ 72% market share. Cable, distant second despite being 4 years older

ARPU ~ USD 6 pm

Zero subsidy on CPE sales

Source: MPA 2016

Pay TV industry revenue (USD mn.)

Pay TV subscribers (000)

17

Financials

18

Quarter ended

Quarter ended

Rs. million June – 2015 June – 2016

Operating revenues 7,367 7,786*

Expenditure 5,009 5,139

EBITDA 2,357 2,646

EBITDA margin (%) 32.0 34.0

Other income 262 119

Depreciation 1,598 1,613

Financial expenses 480 521

Profit / (Loss) before tax 542 631

Tax expense - 223

Net Profit / (Loss) for the period 542 409

1QFY 2016 vs. 1QFY 2017Operating revenue break-up

(Rs. mn)

1QFY - 2017

Summarized Consolidated P&L - Quarterly

19

5.7

2.6

12.2

(54.7)

0.9

8.6

Variance(1QFY16 vs.1QFY17) in %

7,282

51

254 124 75

Subscriptionrevenue

Lease rentals

Bandwidthcharges

Advertisementincome

Teleportservices, CPE &Other

Notes: * Quarter ended June 2016 operating revenues, on a like-to-like basis, were Rs. 8,172 million. A growth of 10.9% Y-o-Y.

# Quarter ended June 2016 subscription revenues, on a like-to-like basis, were Rs. 7,669 million.

#

Yearended

Yearended

Rs. million Mar. – 2015 Mar. – 2016

Operating revenues 26,879 30,599

Expenditure 19,548 20,350

EBITDA 7,331 10,249

EBITDA margin (%) 27.3 33.5

Other income 635 640

Depreciation 6,138 5,907

Financial expenses 1,754 2,087

Profit / (Loss) before tax 74 2,895

Tax expense 42 331

Deferred tax assets - (4,360)

Net Profit / (Loss) for the period 31 6,924

FY 2015 vs. FY 2016Operating revenue break-up

(Rs. mn)

FY - 2016

Summarized Consolidated P&L - Annual

20

13.8

4.1

39.8

0.8

(3.8)

19.0

Variance(FY15 vs. FY16) in %

28,275

406

1,055 499

365

Subscriptionrevenue

Lease rentals

Bandwidthcharges

Advertisementincome

Teleportservices, CPE &Other

Rs. million March`2016 (Audited)

EQUITY AND LIABILITIES

Shareholders’ funds

(a) Share capital 1,066

(b) Reserves and surplus 2,741

3,807

Non-current liabilities

(a) Long-term borrowings 11,535

(b) Other long term liabilities 635

(c) Long-term provisions 173

12,343

Current liabilities

(a) Short-term borrowings 28

(b) Trade payables 2,298

(c) Other current liabilities 8,766

(d) Short-term provisions 12,151

23,243Total 39,394

Consolidated Balance Sheet

21

Rs. million March`2016 (Audited)

ASSETS

Non-current assets

(a) Fixed assets 24,201

(b) Non-current investments 1,500

(c) Deferred tax assets 4,360

(d) Long-term loans and advances 1,692

(e) Other non-current assets 27

31,780

Current assets

(a) Current investments 820

(b) Inventories 126

(c) Trade receivables 725

(d) Cash and bank balances 3,392

(e) Short-term loans and advances 2,308

(f) Other current assets 243

7,613

Total 39,394

Consolidated Balance Sheet (continued)

22

Annexure

23

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 645.7 bn(1)

Source: Company websites, BSE, MPA Report 2016

Note: (1) Market capitalization as on 4th August, 2016

Market Cap: Rs 467.0 bn(1) Market Cap: Rs 11.0 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 104.1 bn(1) Market Cap: Rs 30.3 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 Cable Network

Packaging (Essel Propack)

– Market Cap: Rs 33.3 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

24

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

Thank You

25

Documents

Dish TV India Limited · PDF fileTATA Sky: world Launched in 2006. JV between the TATA Group and News Corp Sun Direct: Launched in 2007. JV between Sun Network and Astro, Malaysia