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INVESTOR UPDATE For the Quarter Ended
September 30, 2015
October 21, 2015
Disclaimer
Forward Looking Statements
This presentation includes "forward-looking statements", as defined in the safe harbor provisions of the US Private Securities Litigation
Reform Act of 1995. In addition to statements which are forward-looking by reason of context, the words “may”, “will”, “should”, “expects”,
“plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue” and similar expressions identify forward-looking
statements. We caution you that reliance on any forward-looking statement involves risks and uncertainties that might cause actual results
to differ materially from those expressed or implied by such statements. These and other factors are more fully discussed in the Videocon
d2h’s registration statement on Form F-4 filed with the SEC and available at http://www.sec.gov. All information provided in this
presentation is as of the date hereof, unless the context otherwise requires. Other than as required by law, Videocon d2h does not
undertake to update any forward-looking statements or other information in this presentation.
Industry and Market Data
In this presentation, Videocon d2h relies on and refers to information and statistics regarding market shares in the sectors in which it
competes and other industry data. Videocon d2h obtained this information and statistics from third-party sources, including reports by
market research firms, such as Media Partners Asia, Ltd. Videocon d2h has supplemented this information where necessary with
information from discussions with Videocon d2h customers and its own internal estimates, taking into account publicly available information
about other industry participants and Videocon d2h’s management’s best view as to information that is not publicly available.
Earnings before interest, tax and depreciation & amortization (EBITDA)
EBITDA presented in this presentation, is a supplemental measure of performance and liquidity that is not required by or represented in
accordance with IFRS. Furthermore, EBITDA is not a measure of financial performance or liquidity under IFRS and should not be
considered as an alternative to profit after tax, operating income or other income or any other performance measures derived in
accordance with IFRS or as an alternative to cash flow from operating activities or as a measure of liquidity. In addition, EBITDA is not a
standardized term, hence direct comparison between companies using the same term may not be possible. Other companies may
calculate EBITDA differently from Videocon d2h, limiting their usefulness as comparative measures. Videocon d2h believes that EBITDA
helps identify underlying trends in its business that could otherwise be distorted by the effect of the expenses that are excluded calculating
EBITDA. Videocon d2h believes that EBITDA enhances the overall understanding of its past performance and future prospects and allows
for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
2
1st Indian media company to ring the opening bell at NASDAQ
…. also the most valued
Indian company listed on
NASDAQ by market
capitalization
India’s fastest growing
PayTV company is
now ……
3
Key Pillars of Growth
Strong Indian
economy creating
new PayTV
households
7% growth in Indian economy and attractive business climate creating rapid household
expansion Over 100 million (mn) Homes of market opportunity and 100 mn+ Homes with no
television
DTH capturing
market share from
cable
DTH revenue market share projected to increase from 41% to 47% from 2015 to 2019
In phase I & II ,DTH took ~40% market share and strongly positioned in phase III & IV with
current market share of DTH ~70%
Improving ARPU
Greater network capacity of DTH enables premium content packages driving ARPU
increases
ARPU has grown from Rs150 levels in FY13 to Rs205 in Q2FY16
India is the World’s Fastest Growing PayTV Market
Source: MPA report 2014, Company Data
Average Revenue Per User (“ARPU” ) is calculated after adding back distribution margin of approximately 5%
I
II
III
4
Digital PayTv Connections :100mn Plus Opportunity
Share of DTH vs. Digital Cable
Source: MPA report 2014
175
197
63.0%
66.0%
2015 2019
(Pen
etra
tion
of
tota
l ho
useh
old
ers
)
TV
Ho
us
eh
old
s (
in m
n)
Significant increase in TV households…
+13% / 22m households
5
23
17
15
1
7
17
10
2
46
24
3
80
50
35
- 15 30 45 60 75 90
Phase IV
Phase III
Phase I & II
DTH Digital cable Free dish Analog cable
~75 mn Homes
To be Digitized
+
~25 mn New TV Homes
To be Added
= 100 mn+ Homes
Market Opportunity
$3.2 $4.5 $4.7
$9.1 $10.7 $10.9
$26.0
India China Vietnam Phillippines Thailand Indonesia Malaysia GDP growth
(‘14-’16
CAGR)
6.8% 6.5% 5.2% 5.1% 6.5% 3.2% 6.2%
Significant ARPU Upside
Source: MPA report 2014 ,Company data , Company estimates
Substantial upside in Indian PayTV ARPU given strong economy Significantly higher pricing on HD
~2
.5x
Monthly PayTV ARPU (2013)
(in US$ / month)
In Rs
6
440 440 484
521
590 605
149 180
217 217 241 253
0
100
200
300
400
500
600
700
Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Sep-15
HD base pack price (Rs) SD base pack price (Rs)
Videocon d2h Is The Fastest Growing DTH Company
Videocon d2h, ~9%
Others, ~91%
Subscriber market share in FY11
Videocon d2h,
~20%
Others, ~80%
Subscriber market share in FY15
Videocon d2h,
~21%
Others, ~79%
Subscriber market share in H1FY16
Deep and Experienced Management Team
Videocon d2h
Saurabh Dhoot Anil Khera Rohit Jain
Executive Chairman Chief Executive Officer Deputy Chief Executive Officer
Visionary behind Videocon
d2h
Board member of Videocon
d2h since 2007
Responsible for strategic
direction of Videocon d2h
Nearly 30 years of
experience with the
Videocon Group
CEO of Videocon d2h since
2008
Previously CEO of Sansui
India
Deep expertise in sales and
distribution of consumer
products
Over 20 years of experience
in consulting, finance and
business management
Deputy CEO of Videocon
d2h since 2010
Previously worked at PwC
and Hewitt Associates
(India)
Responsible for financial
and programming strategy
Himanshu Patil
Chief Operating Officer
Over 27 years of experience
in marketing and operations.
COO of Videocon d2h since
2008
Previously worked at Onida,
Bajaj Electricals and
Videocon Industries Limited
Responsible for operational
and technology strategy
7
2010 2009 2011 2012
Jul-09:
Initial test launch of
Videocon d2h service
Feb-10:
Operations launched
across India
Oct-10:
Crossed the 1mn
subscribers mark
Sep-12:
Videocon d2h reports
positive EBITDA
Key milestones
Dec-11:
Crossed the 5 mn
subscribers mark
Mar-11:
Launched HD
services
2013
Aug-15:
Crossed the 14mn
subscribers mark
2014 2015
Jan-15:
Launched 4K
Channel
Jan-14:
Crossed the 10 mn
subscribers mark
Source: MPA report 2014, Company data 8
Aug -13:
Launch of
1000 GB DVR
Videocon d2h : Competitive Advantage
Pioneer in Technology &
Product Innovations
Highest no. of channels
and services in India Quality customer service
Widespread sales &
distribution presence
India’s fastest growing DTH company
Channel and Regional Content Offering
Videocon d2h offers highest number of channels in India
Highest number of regional channels available on Videocon d2h
Highest number of
Channels & Services : 558
Highest number of
Regional Channels : 196
Pioneer of Simplified
packages to consumers
Strong focus on Regional
Content
Source: Company data, Company estimate; Based on publicly available data for other
companies 9
256 269
313 345
217 243
286
325
160 177
192
227
144 172
198 209
0
50
100
150
200
250
300
350
400
Base pack Sports pack Premium pack Premium + HD pack
Videocon d2h Dish TV Tata Sky Airtel
35
26 23
21
16 14
11
0
5
10
15
20
25
30
35
40
Tamil Telugu Malayalam Kannada Bengali Marathi Oriya
Strong High Definition Offerings
HD Channel Count on Videocon d2h
Several channels were first to launch on Videocon d2h Videocon d2h Subscriber Split in FY15
HD Pack, 30%
SD Pack
70%
5.6 6.5
8.5
11.0
13.0
15.5
18.0
22.0
0.0
5.0
10.0
15.0
20.0
25.0
2012 2013 2014 2015 2016 2017 2018 2019
Rising Sale of Panel TV in India (mn)
Source: MPA report 2014, Company data 10
Plan to further
enhance HD
offering in
immediate
future 12
21
26 29
40
0
5
10
15
20
25
30
35
40
45
FY12 FY13 FY14 FY15 Q2FY16
Nationwide Distribution & Leading customer service
Source: Company data 11
97%+ installations
within 4 hours
85%+ fault repair
within 6 to 8 hours
Strong after-sales
services
300+ direct service
centers plus 700+
service franchises
Network of over
33,000 engineers;
including over 6,650
dedicated customer
support staff
Extensive nationwide
network leveraging
Videocon Group’s
distribution expertise
Extensive nationwide
network driving sales
Over 2,800 distributors
and direct dealers
Over 200,000 sub-
dealers and recharge
counters
365 sales executives in
25 offices
Technology and Innovation in Products & Offerings
Source: Company data
1000 GB HD DVR
Wireless DTH Headphone
RF Remote
Advertising TV
Everywhere
11 Proprietary Services
Technology & Innovations
Latest Technology New Offering Product Innovation
MPEG4
DVB S2
HEVC
DVB S2
12
4K
Strong Brand Partnerships & Associations
Source:, Company data 13
Brand Recognitions & Awards
Source: Company data 14
Key Metrics
Gross and Net Subscribers
Gross and Net Subscriber Base (mn) Gross & Net Subscriber Additions (mn)
Gross and Net Subscriber Base (mn) Gross & Net Subscriber Additions (mn)
5.4
8
8.0
2
10
.45
13
.09
4.8
4
6.7
1
8.4
4
10
.18
2.0
4.0
6.0
8.0
10.0
12.0
14.0
FY12 FY13 FY14 FY15
Gross base
2.6
4
2.5
4
2.4
3
2.6
4
2.0
8
1.8
7
1.7
3
1.7
4
-
0.5
1.0
1.5
2.0
2.5
3.0
FY12 FY13 FY14 FY15
Gross addition
Source: Company data 16
11.2
1
11.8
2
12.4
7
13.0
9
13.7
0
14.2
7
9.0
9
9.4
6
9.8
2
10.1
8
10.6
4
10.8
4
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Gross base Net base
0.7
6
0.6
1
0.6
6
0.6
2
0.6
1
0.5
7
0.6
5
0.3
7
0.3
6
0.3
6
0.4
6
0.2
0
-
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Gross addition Net addition
ARPU and Churn
Annual ARPU (Rs) Quarterly ARPU (Rs)
Monthly Churn (%)
150
181
196
100
120
140
160
180
200
220
FY13 FY14 FY15
0.97%
0.76% 0.80%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
FY13 FY14 FY15
Source: Company data 17
Monthly Churn (%)
187 190
195
202
205 205
175
180
185
190
195
200
205
210
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
0.42%
0.85%
1.02%
0.85%
0.46%
1.19%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Revenue and EBITDA
Annual Revenue & Adjusted EBITDA (Rs billion) Quarterly Revenue & Adjusted EBITDA (Rs billion)
11.30
17.64
23.38
0.77
3.92 6.09 6.8%
22.2%
26.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
-
5.0
10.0
15.0
20.0
25.0
FY13 FY14 FY15
Revenue EBITDA EBITDA %
Source: Company data 18 Note: * Q4 FY15 Adjusted EBIDTA is before accounting for one off securities issue expenses of Rs 105.43 mn and Employee Share based Compensations cost
of Rs. 29.74 mn towards provision of ESOP plan of 2014; Q1FY16 and Q2FY16 Adjusted EBITDA is before accounting for Employee Share based
Compensations cost of Rs. 29.44 mn towards provision of ESOP plan of 2014
** Q1 & Q2 Hardware subsidy stood at Rs1,793 and Rs1,775 per subscriber respectively
*
SAC per sub (Rs) Revenue and EBITDA per avg. net sub (Rs per month)
5.37 5.73
6.02 6.25 6.63
6.90
1.48 1.45 1.41 1.75* 1.90* 1.91*
27.6% 25.2%
23.5%
28.0% 28.7% 27.7%
18%
20%
22%
24%
26%
28%
30%
32%
0
1
2
3
4
5
6
7
8
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Revenue EBITDA EBITDA %
2,090
1,890
1,984
1,793 ** 1,775 **
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
2,050
2,100
2,150
FY13 FY14 FY15 Q1FY16 Q2FY16
SAC per sub
163
194 209 212 214
11
43 55 61 59
-
50
100
150
200
250
FY13 FY14 FY15 Q1FY16 Q2FY16
Total revenue per sub EBITDA per sub
Operating Leverage
Fixed, Variable and Content Cost (% of Revenue) Fixed, Variable and Content Cost (% of Revenue)
40.4% 34.1% 36.2%
22.6% 20.6% 17.0%
30.1%
23.1% 21.2%
6.8%
22.2% 25.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY13 FY14 FY15
Content costs Fixed costs Variable costs EBITDA margin
Content agreements locked in for 3 years on average
Bulk of the content contracts were renewed in H2FY15
19
32.7% 34.8% 38.3% 38.4% 37.0% 38.1%
17.3% 17.6% 16.0% 17.8% 16.1% 15.6%
22.4% 22.4% 22.2% 17.9% 18.6% 19.0%
27.6% 25.2% 23.5% 25.9% 28.3% 27.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1Q FY15 2Q FY15 3Q FY15 4Q FY15 1Q FY16 2Q FY16
Content costs Fixed costs Variable costs EBITDA margin
Source: Company data
Balance sheet and cash flows
ADS equivalent outstanding (mn)
Capex (Rs mn) Adjusted EBITDA** less capex (Rs mn)
Source: Company data 20 Note: * 1st earn out milestone achieved
** FY15 and Q1FY16 Adjusted EBIDTA is before accounting for one off securities issue expenses and Employee Share based
Compensations costs towards provision of ESOP plan of 2014
60.50 60.50 66.69 72.88
32.50 32.50
32.50 5.25
6.25 7.25
60.50
98.25 105.44
112.63
0
20
40
60
80
100
120
Prior to listing
Post listing
Post 1st earn out *
Post 2nd earn out
Founder Public SPAC sponsor
7,010 6,439
7,597
1,530
2,460
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FY13 FY14 FY15 Q1FY16 Q2FY16
Capex
(6,237)
(2,517)
(1,504)
374
(548)
(7,000)
(6,000)
(5,000)
(4,000)
(3,000)
(2,000)
(1,000)
-
1,000
FY13 FY14 FY15 Q1FY16 Q2FY16
Adjusted EBITDA less capex
Financial overview
Financial Results (Unaudited) – Quarterly profit and loss
22
Rs in mn Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
INCOME
Revenue from operations 5,375 5,734 6,015 6,253 6,628 6,901
5,375 5,734 6,015 6,253 6,628 6,901
EXPENSE
Operating expense 3,090 3,381 3,746 3,637 3,791 4,021
Employee benefits expense 244 245 250 285 309 303
Administration and other expenses 127 157 152 253 146 198
Selling and distribution expenses 432 507 457 461 509 496
Depreciation, amortization and impairment 1,245 1,284 1,348 1,410 1,427 1,489
Total Expenses 5,137 5,573 5,952 6,045 6,181 6,507
Profit / (Loss) from operations 238 161 63 207 447 394
Finance costs/Finance Income (Net)
(1,045)
(1,049) (1,219) (1,301) (765) (802)
Other Income 0 0 0 (1) 12 6
Profit/(loss) before tax (807) (888) (1,155) (1,094) (307) (402)
Income tax expense
Current tax - - - - - -
Deferred tax (249) (275) (357) (337) (63) (156)
Profit/(Loss) after tax (558) (614) (798) (757) (244) (246)
Investor Relation Contact
Nupur Agarwal
Thank You
23
