DISH TV INDIA LIMITED

INVESTOR PRESENTATION
JUNE 2010

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, ti i t d i Th d b li anticipate, expect, ti t t 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 forward looking of, 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.
2

ABOUT US
Indias pioneer DTH service provider; the only listed pure-play DTH company in the country. Consistent market leader with more than 33% subscriber share currently. Part of the Essel group: Having diverse presence across media, packaging, entertainment, technology enabled services, infrastructure development and education education. & Zee Network: I di fi and the countrys l Z N k Indias first d h largest f ll i fully integrated media and d di d entertainment conglomerate. Promoted and led by Subhash Chandra, Chairman, Essel group of companies, a thought leader and a pioneer in most of his businesses.
3

INDIA DTH INDUSTRY OVERVIEW

OPPORTUNITIES GALORE
KEY STATISTICS:
Total HHs TV HHs TV Penetration C&S HHs C&S Penetration (TVHHs) DTH HHs DTH Penetration (C&S) 232.7 mn. 136.3 mn. 58.6% 105.0mn. 77% 22 mn. 20.9% 20 9%

Increasing TV penetration, likely to be 64% in 2013 from around 59% currently. Amongst the largest pay TV markets in the world. C&S penetration likely to be 88% by 2013 from 77% currently. DTH penetration still has plenty of room for growth.
Source: MPA 2009 report

ENCOURAGING TRENDS IN DTH TRACTION

70% 60% 50% 40% 30% 20% 10% 0% 1.0% 1 0% 0.4% 2.0% 2 0% 0.9% 4.0% 2.9% 12.0% 8.6% 17.0% 13.1% 21.0% 16.9% 24.0% 20.0% 26.0% 22.4% 28.0% 24.4%
% Cable HHs to TV HHs % DTH HHs to TV HHs % DTH HHs to Pay TV HHs

58.5%

61.2%

63.9%

64.3%

63.9%

63.7%

63.5%

63.3%

63.2%

40 35 30 25 20 15 10 5 0 2006 2007 2008 2009 11 1.1 3.6 36 11.1 17.9 28% CAGR 2008-13 24.1 29.5

37.8 34.1

DTH driving digitization & growth in pay-TV HHs Rapidly increasing DTH penetration; likely to be28% by 2013. An estimated 60% of all new C&S subscribers up to 2018 expected to opt for a DTH connection.

2010p 2011p 2012p 2013p

DTH Sub. Base in Million

Source: MPA 2009 report

IMPORTANT MILESTONES
25

VOLUNTARY DIGILIZATION BY CABLE OPERATORS .

DTH SUBS CROSS 20 MN MARK

20

DTH SUBS BREACH THE 2MN MARK IN A 2 PLAYER MKT. DISPUTE OVER CONTENT . SETTLEMENT BTW DISH & STAR

SUBSCR RIBERS IN MN M

15

DTH SUBSCRIBER BASE AT ~10 MN

10 LAUNCH OF DTH SERVICE BY DISH TV IN SELECT MARKETS 5

DIGITIZATION TRIGGRED, CAS MADE MANDATORY IN SELECT PART OF METROS LAUNCH BY SUN DIRECT LAUNCH OF DTH SERVICE BY TATASKY

DISPUTE WITH SUN TV OVER CONTENT. SETTLED.

LAUNCH OF DTH SERVICE BY VIDEOCON

LAUNCH OF RELIANCE BIG TV

LAUNCH OF DTH SERVICE BY AIRTEL

DISH Subscribers

DTH Subscribers

INDUSTRY - KEY REGULATIONS

Total Foreign investment limit of 49% (sub limit ceiling of 20% for FDI)

Licensing

Uplink centre to be in India Set-top boxes to be BIS compliant License Fee at 10% of subscription revenues (favourable TDSAT order received on 28/05/10. I 28/05/10 Impact to b worked out) t t be k d t) Initial license validity of 10 years; renewable there after

Inter Connect

Content providers have to provide content to all broadcasters; pricing flexible d h d ll b d l bl Prohibits broadcasters from seeking guarantee for minimum number of subscribers

Quality of Service

Subscribers can be offered STBs on Rental / Hire purchase / Sale Mechanism to be in place for handling customer complaints & grievances

Reference Inter-connect

Pricing information on content of the broadcaster Max 50% of Non-CAS cable rates A-la-carte offering to be allowed

DISH TV MARKET LEADER IN DTH

BUSINESS MODEL
Direct-to-home distribution of TV channels up-linked from India by Broadcasters. CPE installed at consumers house. Initial inertia to pay for hardware equipment leading to up-front subsidy on STBs. Negative Working Capital cycle subscription revenue collected in advance. Revenue from subscription and lease rentals. Emerging revenue streams include, bandwidth charges, MOD, advertisement & teleport. l Fixed content cost deals with most broadcasters; significant competitive advantage. Growing subscriber base to bring in operating leverage into play. 10

KEY STRENGTHS
Brand

Strong Brand presence and Brand recall.

Market Leadership

Largest subscriber base amongst all six players; currently over 33%. Carried and distributed by most third party dealers and distributors.

Largest Channel Offering g

250 channels & services and growing. Fixed content cost deal with almost all big broadcasters.

Selling & Distribution Network

Pan-India presence through 1004 distributors & ~48,000 dealers across 6600 towns Netwo Network managed by ove 200 sales pe so el. 8 Zonal and 19 Regional Offices. a aged over 00 personnel. o al a d 9 eg o al O ces. ~600 Dish Shoppees to provide demo to prospective subscribers. (March 10)

Advanced Infrastructure & Technology

Sufficient capacity to broadcast increasing number of channels currently 10 KU band transponders. DISH TRUHD with content tie-up with HD channel broadcasters already in place.

SELECT KEY MANAGEMENT PERSONNEL

Subhash Chandra
Non Executive Chairman

Promoter Essel Group of Companies. He has been the recipient of numerous honorary degrees, industry awards and civic honors.

Jawahar Lal Goel

Managing Director

Involved in the day-to-day affairs of the company since January 07, he has been instrumental in establishing Dish TV as Indias leading DTH India s company. He is also the President of the Indian Broadcasting Foundation.

Salil Kapoor
COO

An MBA from Delhi University, Salil has a work experience of more than 18 years and has worked with various global corporations including Microsoft and Samsung.

Rajeev Dalmia
CFO

A qualified Chartered Accountant, Rajeev has been leading the finance department since January, 07.

DISH TV NOW

13

CONSISTENT LEADERSHIP
Dish TV Increasing number of subscribers
25

Dish market share on total subscriber base

75.7%

80%

70% 20 60%

15 42.4%

50% % Share

40% 34.7% 33.4% 20.67 30%

10 18.43

11.1 6.9

20%

6.4 3.6 0 Dec-07

Total DTH HH

10%

4.7 2.7 27 0% Dec-08 Dec-09

Dish TV HH

Mar-10
Dish TV Market Share

Source: Dish TV

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 14

KEY BUSINESS METRICS

Average Revenue Per User (ARPU)

ARPU under pressure due to increased competition Rational pricing to prevail as low pricing not sustainable over long term

Subscriber acquisition cost (SAC)

Focus on reducing subsidies Change over to a model of charging for a bare box and g g un-bundling of content fees and set top box

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

15

FINANCIALS

16

ENCOURAGING PERFORMANCE
EBITDA Margin - Annual
10848 1,100 INR Mn. R 900 700 4133 500 300 100 FY 07 FY 08 FY 09 FY 10 1909 EBITDA % FY 07 20.0% 0.0% -20.0% -40.0% -60.0% -80.0% -100.0% -99% -53% -26% FY 08 FY 09 FY 10 8%

FY 08-10 CAGR 62.0%

7377

Operating Revenues - Quarterly

12000 000 10000 INR Mn 8000
0 500 250 -57%

EBITDA - Quarterly
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY Q4 FY FY08 FY08 FY09 FY09 FY09 FY09 FY10 FY10 10 10 354 44 -39% -41% -50% -20% 199 234 127 40% 20% 0% 2% 6% 9% 5% 12% -20% -40% -500 -538 -750 -1000 1000 -642 -667 -874 874 -390 -60% -80% -100% 100%

6000
-250

4000 2000 0 Q1 FY 10 Q2 FY10 Q3 FY10 Q4 FY10 FY10

17

LOWER CONTENT COST DRIVING MARGINS

18

SUMMARY FINANCIALS QUARTERLY

Quarter ended Gross Operating Revenue Expenditure EBITDA Add: Other Income Less: Depreciation p EBIT Less: Financial Exps PBT Provision for Tax PAT Operating metrics Subscribers Added (mn) SAC ( Rs/sub) ARPU ( INR ) Mar'09 2,071 2,027 44 10 644 -590 217 -807 2 -809 Mar'09 0.35 2,505 131 Sep'09 2,578 2,344 234 730 -496 66 -562 0 -562 Sep'09 0.41 2635 139 Dec'09 2786 2659 127 779 -651 110 -762 0 -762 Dec'09 0.55 2477 135 Mar10 3037 2683 354 846 -492 106 -598 0 -598 Mar10 0.43 2383 138

Source: Dish TV Earnings release and published quarterly results; Amounts in INR mn unless other wise mentioned

WAY FORWARD

20

GROWTH WITH PROFITABILITY

Continuous focus on: Sustained product Augmenting revenue contribution Expand customer base with focus on leadership 21 through innovative value added services innovation to retain subscribers and expand category Technology and Distribution Customer care Brand building

THANK YOU

22

QUESTIONS

23