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 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.

Indian M&E Industry Snapshot

M&E industry composition & size (INR bn.)
TV

Print

Films

Indian Television Industry

Others

Broadcasting Industry

307
133
11%
104
18%

17%

14%

62

125

2008

241
42%

14%

2013

417
45%

243

172

580

220

2018

12%

885
50%

DTH

Analog
Cable

Digital
Cable

28%

46%

15%

producing content in
across

21%

918

Multiple
broadcasters
15 languages

374

26%

30%

Distribution Industry

7 genres
beaming

1,786

~788 channels

Indian television market statistics (mn. HHs)

295.9
262.3

2013 - 2018

223.2

193.3
161.8

126.6

173.2

TV penetration (of total HHs) ~ 62% - 65%

135.0

C&S penetration (of TV HHS) ~ 83% - 90%

90.7

Average household size of 5.1

2008
Total HHs

2013
TV HHs

2018
C&S HHs
CAGR of 5.11% (2013-2018)

Source: M&E industry composition & size: FICCI-KPMG 2014, Indian television statistics & broadcasting and distribution industry.: MPA Report 2013

Distribution Industry

Digital Addressable Systems - DAS

Phase I

Phase II

Phase III/IV

Delhi, Mumbai, Calcutta & Chennai

38 notified cities

Rest of India

30-June-2012

31-Mar-2013

31-Dec-2015/2016

Cable
Land grab seeding at throw away prices
No addressability/KYC
Working backwards to fill in the critical gaps; billing, collection
and dunning

DTH
Opening up of cable stronghold markets
Bonus additions for the sector

Dish TV

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 than90%

60% incremental
of Total Revenue
potential for DTH

Digital Penetration of Total Pay-TV Subscribers in India is

Amongst the Lowest *
120%
100%
80%
60%
40%
20%
0%

100% 100% 100% 100% 100% 100% 99% 93%

69%

45%

Higher incremental net adds; positive shift in subscriber

distribution

Source: *MPA Report 2013

Distribution Industry - Cable

1990 - 2014

3 Tiered Structure

MSOs

Analog signal - limited carrying capacity, broadcasters

jostling for PCS

Pre-DAS

Placement & Carriage fees - bulk of MSOs top-line

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

(more than 115 )

No incentive to raise ARPUs

Distributors
(at least 1 for each
MSO)

Digital signal - fatter pipe, larger carrying capacity

Post-DAS

LCOs

Lack of addressability
Continued low content payout & dependence on placement fees
Efforts on to roll out last mile billing

(more than 50,000)

Distribution Industry - DTH

DTH Players in India

100% digital

Owns last mile subscribers

Industry pioneer. Started operations in 2003

Dish TV

Subscription driven top-line

Fully prepaid

DTH contributes ~ 60% of the

broadcasters domestic subscription revenue;
scope for rationalization vs. cable

Tata Sky

Sun Direct

Fully tax compliant

Heavily taxed:
License fees 8% AGR instead of
10% GR (TRAI recommendations on
issues related to new DTH licenses)
Entertainment tax - likely to be
subsumed post rollout of GST

Reliance
Digital
Airtel Digital
Videocon
D2h

Part of the Zee stable, largest producer and aggregator of Hindi

programming in the world
Launched in 2006
JV between the TATA Group and News Corp

Launched in 2007
JV between Sun Network and Astro, Malaysia

Part of Reliance Communication Ltd, a subsidiary of Reliance ADA

group
Launched in 2008
Part of the telecom major Bharti Airtel.
Launched in 2009
Part of the white goods manufacturing, Videocon group
7

Dish TV

Key Managerial Personnel

8%

Key Managerial Personnel Pioneers and Visionaries

Non Executive Chairman

Subhash Chandra

Promoter of the Essel Group of companies

Indias media mogul and founder of Zee, Indias first
satellite television channel in 1992 & later Indias first
private news channel, Zee News
A self-made man, has consistently demonstrated his ability
to identify new businesses and lead them on the path to
success
Other business interests, education, theme parks, wellness

Managing Director

Jawahar Lal Goel

Key architect in creation and expansion of Essel Group of

Companies
Key architect of cable TV services, established Siti Cable
in 1994
Pioneered the DTH services in India and has been
instrumental in establishing Dish TV
Past president of IBF for four consecutive years upto 2010
An active member on the Board of various committees set
up by MIB, for addressing critical industry matters

CEO

R.C. Venkateish

India and South Asia MD of ESPN Star Sports prior to

joining Dish as its CEO.
Current President of DTH Operators Association
More than 27 years of experience & a successful track
record in turning around businesses for brands like Oral-B,
Nestle and Kelloggs

*Shareholding pattern as on 21st July 2014

12%

Promoters

2%

65%

13%

GDR; held by Apollo PE,

USA
FII (incl. 3% of Apollo
PE)
Fin. Inst., Banks & MF
Other Investors

Shareholding Pattern*

Many Firsts to its Credit

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 DTH industry
First to launch High Definition
First to offer unlimited recording
First to be FCF positive
First to launch online TV for DTH viewers Dish on Line
First to launch a sub-brand targeting regional language
markets Zing
9

Business Model
Consolidated P&L Structure - FY14

Upfront subsidy on Consumer premises equipment (CPE)

Revenue

Business Model

Subscription revenues

90%

Box Rent

5%
2%
1%
2%

Bandwidth income

Prepaid subscription revenues

Advertising income
Other income

Implied average subscriber life of 12 years

Expenses

Churn at 0.7% p.m.

Programming and other cost

4%
31%

License fees

10%

Other operating costs

11%
7%

Employee benefit expenses

Average ARPU of Rs. 170

Commission
Selling and distribution
expenses

6%

Other expenses

5%

EBITDA

25%
10

Dish TV vs. Competition

Dealer-Distributor Network

Linear and HD channels

Highest transponder capacity

400

377

300

Maximum content tie-ups

Maximum HD channels

Widest service network

Widest dealer-distributor network

291

346

326

250

213

200
46

100

24

20

10

10

27

0
Dish TV Tata Sky

Airtel

Linear

Sun
Direct

Rel.
Digital

Videocon

HD

90% of Total Revenue

Transponder
Bandwidth
Satellite
Number of
Transponders
TP Bandwidth (MHz)
Total Bandwidth
(MHz)

Dish TV

Tata Sky

Airtel

Sundirect Reliance Digital

Videocon

NSS6, Asiasat 5

Insat 4A

SES 7

Measat 3

Measat 3

Singtel ST-2

14

12

11

4+2

36,54

36

36

36

36

54

648

432

396

216

324

432

30% of Revenue
6 Zonal offices
14 Regional offices

11
Source: Company & market data as on 30th June 2014

Key Metrics
Net subscriber base (mn.)

14.0
12.0
10.0
6.0
4.0

9.6

8.5

8.0

10.7

11.4

11.7

FY14

1QFY15

5.7

4.3
2.5

2.0
0.0
FY08

FY09

FY10

FY11

FY12

FY13

90% of Total Revenue

Market share*

12%

7%

80%

19%

64%

70%

15%

20%

Programming and other costs as % of subscription

revenues
75%
55%

60%

43%

50%

27%

40%

37%

34%

34%

FY12

FY13

FY14 1QFY15

34%

30%
20%
Dish TV

Tata Sky

Sun Direct

Big TV

Airtel Digital

Videocon D2h

10%
0%

Source: Company
Note : * Market share based on gross subscribers as on 30th June, 2014 as per market estimates

FY08

FY09

FY10

FY11

12

Key Metrics (continued)

SAC (Rs.)
3,000
2,500

2,505

2,383

2,035

ARPU (Rs.)
200

2,224

2,127

2,000

1,996

1,800

1,800

1,500

131

132

138

FY08

FY09

FY10

150

150

151

157

FY11

FY12

FY13

163

170

FY14

1QFY15

100

1,000

50

500

FY08

FY09

FY10

FY11

FY12

FY13

FY14 1QFY15

90% of Total Revenue

SAC/ARPU (months)
20.0

19.0
15.5

17.3
14.8

15.0

14.1

12.7

11.0

10.0
5.0

30% of Revenue

0.0
FY08

FY09

Source: Company
Note : SAC & ARPU taken as Q4 data for respective years.

FY10

FY11

FY12

FY13

FY14

13

Strategy and Outlook

14

Introducing Zing - Phase III & IV

Viewership share by genre
2013*

Sub Brand of Dish TV

Regional first; regional language

channels , regional look and feel

Regional first national second; unlike

mainstream brands

Customized regional content in digital

picture quality and stereophonic sound

Vfm offering

Healthy gross margin

Now available across Odisha, West

Bengal, Tripura, parts of Assam and most
parts of Maharashtra

Source: * FICCI Frames - 2014

8.6%

18.0%

12.3%
8.7%

2.6%
1.2%

90% of Total Revenue

18.4%

30.0%

Regional GECs,
Regional News, Movies & Music
Hindi GECs
Hindi News & Movies
of Revenue
English30%
Entertainment
& News
Sports
Music, Kids & Infotainment
Other

15

Long Term Focus

Minimizing Subsidy
Offer Price Hike - SD (Rs.)
2,500
2,000

1,640

1,840

Before Feb' 13

w.e.f. Feb' 13
(First hike)

Offer Price Hike - HD (Rs.)

1,999

2,249

w.e.f. Feb' 13
(Second hike)

w.e.f. July' 13

1,500
1,000
500
-

3,500
3,000
2,500
2,000
1,500
1,000
500
-

2,890

Before Feb' 13

3,099

w.e.f. Feb' 13

Reducing Investment per Subscriber

Dish TV - Investment per net subscriber (Rs.)

4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-

3,359

3,218

FY - 11

FY - 12

2,939

2,837

FY - 13

FY - 14

16

ARPU Expansion
Pack Price Hike - SD (Rs.)

400

World Sports

220 220 230 255

100
0
Family

370
320 340
305

All Sports

200

200

Super Gold

Super World

Super Family

300

320
300
280

% Pay-Tv Pen./TV HH

Previous price
Revised price (w.e.f. June'14)

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
0.0%

Source: * MPA Report 2013

380

440
421
400

Pack Price Hike - HD (Rs.)

800
600

Platinum Sports

500

449
385 399

400

460

499

549

560

599

629

200
0

Super Platinum

Revised price (w.e.f. April'13)

Revised price (w.e.f. August'14)

Super HD World

Super HD Premiere

Previous price
Revised price (w.e.f. August'14)

Super HD Royale

Revised price (w.e.f. April'13)

ARPU as a % of GDP per HH*

Korea
Taiwan
India

Malaysia

Pakistan

China

New Zealand
Japan

Vietnam
Sri Lanka
0.2%

Thailand

Philippines

0.4%
0.6%
Pay-TV ARPU as a % of PPP-adjusted GDP per Household

Australia
Indonesia
0.8%

1.0%

17

Key Focus Areas

Growth with
Profitability

Maintaining market leadership while aiming to minimize subsidy

Content Cost
Rationalization

Re-look at fixed fee vs. per subscriber model

Balance Sheet
strengthening

Debt repayment of ~ USD 65 million in FY15

Focus on Cash
Flows

Free cash flow of ~ Rs. 3,127 million in FY14

18

Financials

19

Summarized Standalone P&L - Quarterly

4QFY 2014 vs. 1QFY 2015
Rs. million

Quarter ended Quarter ended

March 2014

June 2014

Variance(4QFY14
vs.1QFY15) in %

Operating revenue break-up

(Rs. mn)
124 89

77

230

Operating revenues

6,369

6,407

Expenditure

5,080

4,836

1,289

1,571

20.2

24.5

201

116

1,491

1,452

326

395

(327)
(1,164)

(160)
-

(1,490)

(160)

EBITDA
EBITDA Margin (%)
Other Income
Depreciation
Financial expenses
Profit / (Loss) before prior period & tax
Prior period items
Tax expense/(write back)
Net Profit / (Loss) for the period

0.6

Subscription
revenue
Lease
rentals

(4.8)
21.9

5,886

1QFY - 2015

(43)

(2.6)
5

Bandwidth
charges
Advertiseme
nt income
Teleport
services,
CPE & Other

20

Summarized Consolidated P&L - Annual

FY 2013 vs. FY 2014

FY 2013

FY 2014

(Audited)

(Audited)

Variance(FY13 vs.
FY14) in %

Operating revenues

21,668

25,090

15.8

Expenditure

15,874

18,849

5,794

6,241

26.7

24.9

511

649

Depreciation

6,276

5,974

Financial expenses

1,284

1,327

(1,254)

(412)

594

(660)
-

(412)
(1,164)

Tax expense/(write back)

0.1

0.5

Loss attributable to minority

0.1

(660)

(1,576)

Rs. million

EBITDA
EBITDA Margin (%)
Other Income

Profit / (Loss) before exceptional items

Exceptional items
Profit / (Loss) before prior period & tax
Prior period items

Net Profit / (Loss) for the period

Operating revenue break-up

(Rs. mn)
496 383
360
1,169

Subscription
revenue
Lease
rentals

18.7
7.7

27.0
(4.8)
3.3

22,681

FY - 2014

Bandwidth
charges
Advertiseme
nt income
Teleport
services,
CPE & Other

21

Consolidated Balance Sheet

FY13 vs. FY14
Rs. million
EQUITY AND LIABILITIES
Shareholders funds
(a) Share capital
(b) Reserves and surplus
Non-current liabilities
(a) Long-term borrowings
(b) Other long term liabilities
(c) Long-term provisions
Current liabilities
(a) Short-term borrowings
(b) Trade payables
(c) Other current liabilities
(d) Short-term provisions
Total

FY 2013 (Audited)

FY 2014 (Audited)

1,065
(2,621)
(1,556)

1,065
(4,191)
(3,126)

8,460
1,504
127
10,092

7,791
918
142
8,851

300
2,138
14,027
6,547
23,012
31,548

658
1,357
11,601
8,361
21,977
27,702
22

Consolidated Balance Sheet (continued)

FY13 vs. FY14
Rs. million
ASSETS
Non-current assets
(a) Fixed assets
(i) Tangible assets
(ii) Intangible assets
(iii) Capital work-in-progress
(b) Non-current investments
(c) Long-term loans and advances
(d) Other non-current assets

Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and bank balances
(e) Short-term loans and advances
(f) Other current assets
Total

FY 2013 (Audited)

FY 2014 (Audited)

14,273
67
6,535
20,875
646
97
743

13,495
76
4,226
17,797
1,500
881
73
2,454

2,782
86
304
3,645
3,060
53
9,929
31,548

500
75
415
3,426
3,029
5
7,451
27,702
23

Thank You

24

Annexure

25

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

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

Founded by Dr. Subhash Chandra

Group Market Cap ( Listed entities under Essel Group ): Rs 390.5 bn(1)
Essel Group
Other Businesses

Media

Distribution

Content

Zee Entertainment
Launched in 1992
One of Indias largest
media and general TV
entertainment network

Zee Media Corp. Ltd.

Launched in 1992

Dish TV
Launched in 2005

Strong presence in
Asias largest DTH
national and regional news service provider
genre

Market Cap: Rs 287.5 bn(1) Market Cap: Rs 6.5 bn(1)

Market Cap: Rs 62 bn(1)

SITI Cable Network

Daily News & Analysis

Launched in 2006

Launched in 2005

One of Indias largest

MSO, presence across 54
cities

English broadsheet daily

with presence across
Mumbai, Bangalore, Pune,
Ahmedabad, Jaipur &
Indore

Market Cap: Rs 17.1 bn(1)

Packaging (Essel Propack)

Market Cap: Rs 17.4

bn(1)
Theme Parks: Essel World
and Water Kingdom
Playwin: Indias first and
largest online gaming
company
Cornership: Animation studio
Cyquator Technologies: IT
Infrastructure outsourcing
Infrastructure
26
Education
Precious Metals
Healthy Lifestyle & Wellness

Source: Company websites, BSE, MPA Report 2013

Note: (1) Market capitalization as on 22nd July, 2014

26

Key Milestones and Performance

Oct 03:
Received license to operate May 05:
Launch of DTH Services
DTH Services

2003

2004

2005

2006

May 10:
Launched HD services

Apr 07:
Listing of Equity Shares on
NSE and BSE

2007

2008

2009

2010

Jan 09:
Rights offering of shares for ~Rs. 11.4 bn.

Apr 04:
Obtained teleport license
from MIB

Full year of

Dec 10:
Acquired additional
transponders on Asiasat 5

Mar 09:
EBITDA breakeven in Q4 FY09

Positive Free Cash Flow

2011

2012

2013 & 2014

July12:
Net subscriber base
crosses 10 million

Nov 09:
Raised $100mn through GDRs to Apollo for
11% ownership

Growth Trajectory Since Listing

2008(1)

2014(2)

Company Profile

First Indian DTH player

Asias Largest DTH Provider

Net Customer Base

< 3.0 million

11.4 million

Total Revenues

Rs 4,162 million

Rs 25,090 million

EBITDA (% margin)

(Rs 2,095 million)

Rs 6,241 million (25%)

Market Capitalization(3)

~ Rs 21.1 billion

~ Rs 54.8 billion

Source: Company filings, Company website, BSE, NSE, MPA Report 2013
Notes:
(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

27