DishTV Investor Presentation

7/30/2019 DishTV Investor Presentation

1/32

Dish TV India Limited

Investor Presentat ion


2/32

Disclaimer

Some of t he st at ement s made in t his present at ion are f orw ard- l ooking st at ement s and are

based on the current beliefs, assumptions, expectations, estimates, objectives and

and t he indust ry and market s in w hich i t operat es.

These forw ard- look ing st at ement s include, wi t hout l i mi t at i on, st atement s re lat ing t o

r evenues an ear n ngs. e w or s

bel ieve , an t i c ipat e , expect , est imate , in t end , p roj ect and sim i l ar expressions

are a lso int ended t o ident i f y f orward l ook ing st at ement s.

These st at ement s are not guarant ees of f ut ure perf orm ance and are subj ect t o

r i sks, uncert aint ies and ot her f act ors, some of w hich are beyond t he cont r ol of t he

Company and are d i f f icu l t t o predict . Consequent ly , act ual resul t s could d i f f er mat er ia l l y

- ,

other factors, changes in economic and market condit ions, changes in the regulatory

envir onment and ot her business and operat ional r isks. Dish TV India Limi t ed does not

undert ake t o updat e t hese for war d- looking st at ement s t o ref l ect event s or cir cumst ances

t hat may ar ise af t er publ icat ion.

2


3/32

About us

Indias pioneer and AsiaPacif ic s lar gest * DTHcompany.

Consist ent market leaderw it h 31% absolu t e sharecurrent ly.

Promot ed and led bySubhashChandr a, Chair m an, Essel

Asia s lar est DTH Consist ent Leader

roup. oug ea er

and pioneer in most of hisbusinesses.

Prom ot ed by

G R O U P

Indias m ediapioneer

Indias f i rst & largest , fu l l yin t egrated, m edia &

ent er t ainm ent com an .

Having di ver se pr esence acrossmedia, packaging, enter t a inme

nt , t echnology enabledservices, inf rast ruct ure

* Ranked by DTH Subs (Y/ E Dec. 09) MPA Repor t 20103

development & educat ion.


4/32

Indian DTH industry

4


5/32

Journey so far

25VOLUNTARY DIGITIZATIONBY CABLE OPERATORS .

DTH SUBS CROSS20 MN MARK

20

N

DISPUTE OVER CONTENT .SETTLEMENT BTW DISH & STAR

DTH SUBS BREACH THE 2MN

MARK IN A 2 PLAYER MKT.

DTH SUBSCRIBERBASE AT ~10 MN

10RIBERSIN

DIGITIZATION

TRIGGRED,CAS MADEMANDATORY IN

SELECTPART OF METROS DISPUTE WITH SUN TV

5

SUBSC

LAUNCH OF DTH SERVICEBY DISH TV IN SELECTMARKETS

OVER CONTENT. SETTLED.

LAUNCH OFDTH SERVICE LAUNCH OF DTH

LAUNCH OF DTHSERVICE BY VIDEOCONLAUNCH BY

SUN DIRECT

0

BY TAT ASKY LAUNCH OFRELIANCE BIG TV

SERVICE BY AIRTEL

5

DISH Subscribers DTH Subscribers


6/32

Opportunit ies galore!

Key statistics: 2010

249256

264 26995%

250

300

Tot al HHs 232 m n.

TV HHs 141 m n.

TV Penet rat ion 61%

223232

13 4 14 1 14 715 3 15 9 16 5

17 0

10 5 11 612 6

13 514 2 14 9 15 5

78 %

82 %86 %

88 %89 % 90 %

91

75

80%

85%

100

150

200

Million

C& S HHs 116 m n.

C&S Penet ration (in TV HHs) 82%

*

70%0

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

Tot al HHs TV HHs

Increasing TV HHs; l i kely t o be 170 mil l i on, 64% penet rat ion, by 2015.

Develo ed count r i es avera e enet rat ion at more t han 97%. China at 98%.

. .C& S HHs C& S Penet rat ion

C& S penet rat ion: huge oppor tun i ty , l i kely t o be 91% by 2015.

DTH t o be t he key dr iver & dir ect benef ic iary of increasing C& S households!

6

Sour ce: MPA 2010 r epor t C& S impl i es cable TV, DTH & IPTV *Up to 28/ 02/ 11. (Source: market est .)


7/32

DTH growth project ions

35

40

45

50

3136

4145

48

35

40

45

30

3539

43

25% CAGR 2009-13 25% CAGR 2009-13

MPA 2010 FICCI Frames 2010

10

15

2025

30

17

24

10

15

20

25

16

24

0

2009 2010 2011p 2012p 2013p 2014p 2015p

DTH Sub. Base (m n. )

0

5

2009 2010p 2011p 2012p 2013p 2014p

40%

50%

60%

70% 65.7% 65.5% 65.0% 64.5% 63.9% 63.2% 62.4% 61.5%

20.7% 23.6% 25.7% 27.2% 28.3%16.420.9%

24.3% 26.8% 28.8% 30.1% 31.2%

0%

10%

20%30%

8.3%

12.8% 17.2%.

7

% Cab le HHs t o TV HHs % DTH HHs t o TV HHs % DTH HHs t o Pay TV HHsSour ce: MPA 2010Cable HHs include analogue & digit al cable Pay TV in cl udes Cable + DTH + IPTV


8/32

Outperformed ! !

MPA 2010 Report - DTH subscr ibers in India t o reach 24 mn. by t he

end of 2010 !

FICCI Frames 2010 - Tot al number of DTH subscr ibers t o be added in

2010 is expect ed t o be ~ 8 mi l l ion.

January December 2010 12.1 mi l l ion*DTH subscribers added

.Record2 mi ll ionsubscribers added during November 10!

8* Source: Dish TV actual & Market Est.


9/32

Outperformed ! !

3035

18.430.6

DTH industry scale-up

Subscribers in Mn.

Sour ce: DishTV actual &indust ry est .

05

1015

20

1. 54. 3

.

DTH driv ing digit izati on & growt h in pay-TV HHs.

2006 2007 2008 2009 2010 - Upt oDecember

DTH penet rat ion al ready at 27% of C& S HHs; ahead of est im at es.

An est im at ed 58% of al l new C& S subscri ber s up t o 2015 expect ed t o opt f or a DTH connect ion. *

9

. . ,over t ake the cur rent leader (U.S), which curr ent ly adds ~ 1.5 mn. subscri bers each year.

* Sour ce: MPA - APAC Pay TV & Broadb and Repor t 2010


10/32

Digitizing with addressability

92%

83%80%

90%

100%Cable subscr ipt ion t o broadcasers DTH subscr ipt ion t o br oadcast er s

67%

56% 53% 51%

33

44% 47% 49%40%

50%60%

8%

17%

0%

10%

20%

mn. Subscript ion RevenueCable Subscript ion to Broadcasters 2006 2007 2008 2009 2010P 2011P

Subscript ion Income Paid (Digit al + Analogue) 19750 23110 27545 30805 34535 39305

Less: Carriage & Placement Received 5000 6000 12000 13000 13000 13300Net Subscript ion Paid 14750 17110 15545 17805 21535 26005DTH Subscript ion to Broadcasters

Net Subscript ion Paid 1360 3415 7795 13905 19375 24925

10Sour ce: MPA 2009, FICCI 2010 &Mkt . est imates

DTH cont inues t o st rengt hen it s relat ionship wi t h broadcast ers creat ing a win-win

sit uat ion for bot h.


11/32

Key regulations

Licensin

Total foreign investment limit of 49% (sub limit ceil ing of 20% for FDI) *

Uplink centre to be in India

Set-top boxes to be BIS compliant

License fee at 10% of DTH revenues (favourable TDSAT Order received on 28/ 05/10 l ikel y to result

in l icense fee out flow at ~ 4%)

Initial license validity of 10 years; renewable thereafter

Servicequality

Subscribers can be off ered 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

Referenceinter-

connect

Pri cing information on content of the broadcaster

Maximum 50% of non-CAS cable rates

A-la-cart e offering to be allowed

11

* As per TRAI s (Telecom Regulator y Aut hori t y of India) recomm endati ondated 30thJune, 2010t o t he Minist ry of I&B, Foreign Invest mentLimi t f or DTH is to be increased to 74%. The recommendat ion is yet t o be approved.


12/32

Dish TV market leader in DTH

12


13/32

Business basics

Direct - t o-home dist r i but ion of TV channels up- l i nked f rom India by

Broadcasters.

CPE inst al l ed on r ent at consum er s pr em ises.

Inert ia t o pay f or hardw are equipm ent resul t s in up-f ront subsidy on STBs.

Negat ive Working Capi t al cycle prepaid m odel .

DTH revenue includes subscr i t ion and lease rent als.

Alt ernat e revenue st ream s - Value-added-services, Movie on-demand and

Bandw idt h charges.

Fixed content cost deals w i t h most broadcast ers; signi f icant compet i t ive

advantage.

Grow ing subscr iber base w ould br ing operat ing leverage i nt o play.

13


14/32

Key st rengths

Strong Brand presence and Brand recall.

Brand

Largest subscri ber base amongst all six players; cur rent ly at 31%.Carried and dist ri buted by most third party dealers and dist ri butors.

Market Leadership

Highest number; more than 250 channels & services and growing.

Content

Pan-India presence through 1400 distributors & ~55,000 dealers across 6600 towns

Sell ing & Dist r ibut ion Network

e wor manage y over sa es personne . ona an eg ona ces.

Sufficient ca acit to broadcast increasin number of channels currentl 16 KU

Advanced Infrast ructure & Technology

14

band transponders equivalent.


15/32

Largest Bouquet

15


16/32

Maximum HD

16


17/32

Maximum Regional

17


18/32

Select key management personnel

Promot er Essel Group of Companies. He is t hepioneer of the Indian television industry and recipientof numerous honorary degrees, industry awards and

-

Subhash ChandraNon Executive Chairman

. .

Mr . Goel i s the MD of Dish TV since January 07 & hasbeen instrumental in establ ishing i t as Indias leading

DTH company. He has also been act ively involved int he expansion of t he Essel Gr oup and is an act ive

Jawahar Lal Goel

Managing Director

member on the Board of var ious commit tees set up by

MIB, Govt . of India f or addr essing cr it ical mat t er srelat ing to the industry. Profile - MD.pdf

R.C. Venkateish

CEO On-board since July 10, he was the MD-India & South, . ,

Gr aduat e, Venkat eish has mor e t han 27 year s ofexperience & a successf ul t rack r ecor d in t ur ningaround businesses & re- defining business processesfor winning brands like Oral-B, Nestle and Kelloggs.

Profile - CEO.pdf

a i Kapoor

COO

Sal il has a work exper ience of more than 18 years andhas worked with various global corporations includingMicrosoft and Samsung. He is an MBA f rom Delhi

University.

18

CFO A qualified Chartered Accountant, Rajeev has been

leading the fi nance depart ment since January, 07.


19/32

Dish TV now

19


20/32

Asia - Pacif ics largest

20


21/32

Market leading share

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

17% 9%

17%

19%7%

31%

Dish TV Tat a Sky Sun Di rect

Big TV Air t el Digi t al Videocon D2h

21Source: Dish TV act ual & industr y est .(28 / 02/ 11)


22/32

Consistent leadership

10 9. 4

Dish TV Increasing number of subscr ibers Dish TV - Market share on total subscr iber base

30.675 %

80 %35

6

8

5. 55. 9

6. 4

6. 97. 5

8. 3

5. 76. 2

6. 8

7. 7

18.4

20.7

23

26

50 %

60 %

20

25

30

4

4. 75. 1

44. 3

4. 65

.

11.1

6. 97. 5 8. 3 9. 4

42 %

35 % 33 %33 % 32 % 31 %

20 %

30 %

40 %

10

15

0

2

3. 62. 7

4. 7.

0%

10 %

0

5

Dec . '07 Dec . '08 Dec . '09 Mar . '10 June '10 Sept .'

Dec. '10

09

09

1

10

10

10

10

1

11

11

11

Gross Subscr iber Base (mn. ) Net Subscr iber Base (mn. )

Source: Dish TV

T ot a l DT H Su bsc ri be rs Di sh T V Su bsc ri be rs

Dish TV Market Share

22

Players wi th large and stable subscriber base to emerge as winners in the long run.

Dish TV is wel l placed being the largest player in the DTH indust ry.


23/32


24/32

Driving up ARPUs market ing init iat ives

24

. .

Constant market ing ini t iat ives to create bet ter value proposit ion in higher ARPU packs.


25/32

Financials

25


26/32

Encouraging performance

FY 08-10 CAGR 62.0%

argns - nnua

8000

10000

12000

7377

10848

.

perat ng evenues - nnua

0%

20 %

FY 07 FY 08 FY 09 FY 10

8.7%

2000

4000

6000

1909

4127

`

Mn

-60%

-40%

-20%

-18.3%

EBITDA & EBITDA Margins - Quarter lyOperating Revenues - Quarterl y

0

FY 07 FY 08 FY 09 FY 10-100%

-

-97%

-53%

3000

4000

2467 25752775

3032 30433261

3732

13.2%10.6

15.3%17.9%

15%

20%80 0

Q3

FY

09

Q4

FY

09

Q1

FY

10

Q2

FY

10

Q3

FY

10

Q4

FY

10

Q1

FY

11

Q2

FY

11

Q3

FY

11

1000

2000`M

n

89

42

157

255

134

400

322 4

98 6

67

2%6.4%

.

4.8%

.

-10%

-5%

0%

5%10%

-

0

20 0

40 0`

Mn

26

Q1 FY 10 Q2 FY1 0 Q3 FY1 0 Q4 FY1 0 Q1 FY 1 1 Q2 FY 11 Q3 FY 11

-3

-20% -25%

-20%

-15%

-600

-400


27/32

Fixed content cost driving margins

Con t en t Cost Con t r ib u t ion Con t en t Cost ( % Su b s Rev en u e)

71% 73% 70%

60% 61%61%

59%54%

54%54%

57% 58%

61%

61%

60%

70%

2500

3000

529

540

58

8

71 1

0

23

10

86

1

150

1

298

1437

1638

1862

41%46%

46% 43% 42%39%

39%

29%27%

30%

40%39% 39%

30%

40%

1000

1500

2000

`

mn.

502 646 755 804 867 929 670 881 925 986 1,001 1,060 1,062 1,229202 2

34

319 9

0%

10%

0

500

- - - - - - - - - - - - - -

27


28/32

Summary financials

Quarter ended Dec '09 March '10 June '10 Sept '10 Dec '10

Gross operating revenue 2 7 7 5 3 0 3 2 3 0 4 3 3 2 6 1 3 7 3 2

Expenditure 2 6 5 9 2 6 8 3 2 7 2 1 2 7 6 3 3 0 6 5

EBITDA 1 1 6 3 4 9 3 2 2 4 9 8 6 6 7

Add: Other income 1 1 5 6 9 2 5 1 7Less: Depreciation 7 7 9 8 4 6 8 8 9 8 4 3 9 0 2

EBIT - 6 5 2 - 4 9 2 - 4 9 8 - 3 2 0 - 2 1 8

Less: Financial expenses 1 1 0 1 0 6 1 3 3 1 3 1 2 2 5

PBT - 7 6 2 - 5 9 8 - 6 3 1 - 4 5 1 - 4 4 3

Provision for tax0 0 0 0 0

- - - - -

Operat ing Met rics Dec '09 March '10 June '10 Sept '10 Dec '10

Subscribers added (mn.) 0 . 5 5 0 . 4 4 0 . 6 4 0 . 7 6 1 . 1

SAC (Rs/subscr iber) 2 4 7 7 2 3 8 3 2 1 4 7 2 0 8 3 2 1 4 2

**

1 3 5 1 3 8 1 3 9 1 3 9 1 4 2

28

. . . .

Source: Company Financials. All f igures in` mn. except ment i oned otherw ise.


29/32

Way forward

29


30/32

Growth beyond j ust subscriber numbers

Continuousfocus on:

Sustained

product

innovat ion t o

Contentenr ichment

revenue

cont r ibu t ion

re ta in

subscri ber s and

expand category

Customer care

Brand build ing

Expand

cust omer base

wi t h f ocus on

innovative value

added servi ces

Technology

an d

ea ers pDistr ibut ion

30


31/32

Thank you

31


32/32

Questions

32

Documents

DishTV Investor Presentation