“strong, profitable growth seizing the indian dth

“Strong, profitable growth seizing

the Indian DTH opportunity.”

NASDAQ: VDTH

12 February 2018

Key Operating & Financial Highlights

Videocon d2h’s Strategy Sustains a Track Record of Value Creation

2

10.2

11.912.9 13.4

FY15 FY16 FY17 9M FY18

23.4

28.6 30.7#

24.4#


6.1

8.0

10.2

8.2


Net Subscribers * (Million) Revenue (Rs Billion) Adjusted EBITDA ** (Rs Billion)

-6.2

-2.4

1.2

2.3

FY15 FY16 FY17 9M FY18(1.6)

0.7

3.9 4.3


2.6

2.0

1.5 1.4

FY15 FY16 FY17 LTM9M FY18

Adjusted EBITDA less Capex (Rs Billion) Net Debt to Adj. EBITDA (x)Free Cash Flow *** (Rs Billion)

Net off Entertainment Tax

Note: * Net subscriber means subscribers authorized to receive DTH broadcasting services on account of payment of subscription charges or any entry offer at the time of initial connection, as well as subscribers who are

temporarily disconnected due to non-payment of subscription charges for a period not exceeding 120 days.

**EBITDA is profit or loss after tax as increased by income tax expense, net finance costs, depreciation, amortization and impairment and reduced by other income. Adjusted EBITDA is EBITDA adjusted for the recognition of

fair value of the Employee Stock Option Plan 2014 recognized as an expense over the vesting period which amounted to INR 117.77 million for the fiscal year 2016 and INR 108.25 million for fiscal year 2017.

***Free Cash Flow is Adjusted EBITDA less capital expenditure and net interest expense, as increased by other income

# The Company adopted a change in the accounting treatment of entertainment tax effective April 1, 2016. This change resulted in operating revenue being presented net of entertainment tax, effective from April 1, 2016.

Prior to April 1, 2016, entertainment tax was accounted for under operating expenses, thus operating revenue was presented without deduction of entertainment tax.

Based on Adj.

EBITDA from

Q4FY17-Q3FY18

• Build subscriber base through distribution & marketing

• Enhance revenue realization through superior service & differentiated offering

• Strong focus on localization & premiumization

• Lead market in technological innovation

• Enhance operational efficiencies & improve margins

Strategy Drives Sustainable, Strong Growth

3

0.6

0

0.5

9

0.5

8

0.4

7 0.6

3

0.4

5

0.5

6

0.4

3

0.2

3

0.2

5

0.1

4

0.1

3

0.2

1

0.1

6

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Gross additions Net additions

2.6

4

2.6

5

2.2

4

1.6

4

1.7

4

1.6

8

1.0

5

0.5

0


Gross additions Net additions

12

.29

12

.52

12

.77

12

.91

13

.04

13

.25

13

.41

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Net Subscriber Base

10

.18

11

.86

12

.91

13

.41


Net Subscriber Base

Net Subscriber Base (mn)

Net Subscriber Base (mn)

Strong Subscriber Growth

Gross & Net Subscriber Additions (mn)

Gross & Net Subscriber Additions (mn)

4

Source: Company data

Note: Gross subscribers means total registered subscribers.

Backed by founders with 30+ years of experience in Distribution

3 generations old loyalty in market relationship with the founder family

75% of DTH display counters in retail stores have d2h demo

Large shelf space occupied by brands under the parent group

93% penetration (reach) against Industry average of 85%

Market reach of more than 250,000 Retail stores1

6

2

5

Pan-India Distribution Channel Supports Sustainable Growth

5

4

3

Source: Company estimates

Strong Brand Partnerships & Associations


6

• Building subscriber base through distribution & marketing






7

0.4

9% 0.9

5%

0.8

7%

0.8

7%

1.2

7%

0.6

2%

1.0

0%

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

21

1

20

9

20

5

19

6

19

8 21

2

20

8

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

0.8

0%

0.7

3%

0.8

0%

0.9

6%


19

6 20

7

20

7

20

6


Monthly Churn (%)

Annual ARPU (Rs)

Rising ARPU and Stable Churn

Monthly Churn (%)

Quarterly ARPU (Rs)

8

Based on Total revenue net off

Entertainment tax & Dealer margin


Note: Churn has been calculated as the number of subscribers who have not made payment for at least 120 days and is the difference between the number of gross

subscribers and the number of net subscribers.

Strong Focus on Customer Service Lowers Churn

Dealer calls the call centre and gives customer details for

installation or customer complaint

Call centre raises a work

order and passes the

details to the respective

service center

Service centre assigns work order for installation or

customer complaint to an engineer

2,800+ Distributors & Direct DealersMarket reach of over 250,000 Retail stores

Fastest growing DTH company in India with 13.41 million

delighted net subscribers (1)

Nearly 320 direct service centers

97%+ installations within 2-4 hours85%+ repairs within 6-8 hours


Note: (1) As of December 31, 2017 9

d2h Proprietary Services: Fulfilling the Content Gap


10







11

56

49

36

28 23 21

14

Tam

il

Telu

gu

Ma

laya

lam

Kann

ada

Beng

ali

Ma

rath

i

Oriya

Strong Content Focus has lead to Consistent Subscriber Growth

12

Source: Company data,

Note: (1) Channels count as of January 15, 2018

(2) Includes HD services

3) As per company estimates

12

21 26

29

45

62 62

FY

12

FY

13

FY

14

FY

15

FY

16

FY

17

H1

FY

18

HD Channel Count (2) on Videocon d2h increasingSignificant regional focus (1)

The Highest Number of Channels and Services in India (3)







13

Constantly Redefining the Viewing Experience: Be Future Ready

14Source: Company data

Latest Technology New Offerings Product Innovation

Technology & Innovations

HEVC

DVB S2

1000 GB HD

DVR

Radio Frequency

RemoteMPEG4

DVB S2Connected Set Top Box

Transforming your TV into a hub of entertainment and knowledge

• MPEG-4 and HEVC technology converts your existing TV into a Smart TV

• Offering a wide range of proprietary services including Smart English, Smart Games, d2h Music, d2h Spice, d2h

Cinema, d2h Cooking, d2h NachLe, d2h Hollywood, d2h Darshan

• India’s First Radio Frequency Remote available to the consumer

• New DVR product can record up to 1,000 GB of content, translating to 1,775 hours of recording

• Connected Set Top Box plugs into any TV enabling apps to stream straight to your TV







15

Note: * FY15 Adjusted EBITDA 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; Q1-Q4 FY16 & Q1-Q4 FY17 Adjusted EBITDA is before accounting for Employee Share based Compensations

cost towards provision of ESOP plan of 2014

1,872 1,869

1,924 1,923

1,865

1,7471,714

Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18

23

.4 28

.6

30

.7

24

.4

6.1

*

8.0

*

10

.2*

8.2

26.1%28.1%

33.1% 33.6%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

5

10

15

20

25

30

35


Revenue EBITDA EBITDA %

209 216207 206

5561

69 69


Total revenue per sub EBITDA per sub

7.6 7.8

7.8

7.5 7.7 8

.3

8.3

2.5

*

2.6

*

2.7

*

2.4

*

2.5 2.8 2.9

33.0% 33.8% 34.4%31.3% 32.2% 33.6% 35.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

9

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Revenue EBITDA EBITDA %

Revenue and EBITDA per avg. net sub (Rs per month)

Annual Revenue & Adjusted EBITDA (Rs billion)

Consistent Profitability Reflects Videocon d2h’s Industry Leadership

Hardware Subsidy per Sub (Rs)

Quarterly Revenue & Adjusted EBITDA (Rs billion)


Revenue from FY17 is net off

Entertainment Tax

16

Revenue for FY17 is net off

Entertainment Tax

7,501

6,502

7,6497,269

6,249

3,899

FY13 FY14 FY15 FY16 FY17 9M FY18

36.2% 37.8% 39.9% 40.6%

17.2% 16.0% 15.4% 14.8%

21.1% 18.6% 11.9% 11.0%

25.5% 27.6% 32.8% 33.6%


Content costs Fixed costsVariable costs Reported EBITDA margin

38.7% 38.7% 39.6% 42.5% 42.0% 39.7% 40.1%

16.1% 15.0% 13.9%16.6% 14.9% 14.2% 12.4%

12.5% 12.7% 12.4%10.2% 10.9% 12.5% 12.5%

32.7% 33.6% 34.1% 30.7% 32.2% 33.6% 35.0%

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Content costs Fixed costs Variable costs Reported EBITDA margin

(6,728)

(2,580)(1,558)

744

3,932 4,306

FY13 FY14 FY15 FY16 FY17 9M FY18

Capex (Rs mn)

Videocon d2h Finances Managed to Sustain Growth, Minimize Risk

Adjusted EBITDA* less capex (Rs mn)


Fixed, Variable and Content Cost (% of Revenue) Fixed, Variable and Content Cost (% of Revenue)

Revenue used

for the

calculation is

net off

entertainment

tax starting

FY17

17Note: * Adjusted EBITDA for FY15 is before accounting for one off securities issue expenses and Employee Share based Compensations costs towards provision of

ESOP plan of 2014; Adjusted EBITDA for Q1FY16 to Q4FY17 is before accounting for Employee Share based Compensations costs towards provision of ESOP

plan of 2014.

Adjusted EBITDA* less capex (Rs mn)

Fixed, Variable and Content Cost (% of Revenue)

Videocon d2h Investment Profile Reflects Management’s Value Building

Approach

18

World’s fastest growing pay TV market in

the fastest growing “large economy”

Leading distribution, customer

service and content offering

Seize Upside Potential

Build Downside Protection

Strong balance sheet with low leverage

Strong Board structure SEC compliant financial reporting

Strong revenue and EBITDA growth

driven by operating leverage

Robust free cash flow generation potential

Strong market presence and industry

leading share of subscriber additions

Videocon d2h Extends its Value Creation Track Record

Rs in mn Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18

INCOME

Revenue from operations 7,633 7,762 7,774 7,549 7,726 8,346 8.337

7,633 7,762 7,774 7,549 7,726 8,346 8.337

EXPENSE

Operating expense 3,994 4,052 4,074 4,071 4,142 4,391 4,436

Employee benefits expense 322 315 302 349 277 240 289

Administration and other expenses 178 183 220 235 208 276 189

Selling and distribution expenses 640 607 527 575 614 633 508

Depreciation, amortization and impairment 1,711 1,685 1,697 1,773 1,793 1,816 1,843

Total Expenses 6,845 6,843 6,820 7,003 7,034 7,357 7,266

Profit / (Loss) from operations 787 919 954 546 692 989 1,071

Finance costs/Finance Income (Net) (759) (717) (653) (687) (678) (763) (630)

Other Income 9 9 10 24 3 17 13

Profit/(loss) before tax 38 211 311 (117) 17 243 454

Income tax expense

Current tax - - - - - - -

Deferred tax 11 63 93 (29) 5 75 146

Profit/(Loss) after tax 27 148 218 (87) 12 168 309

Strongest Financial Results to Date

19

Market Cap as on Dec 31, 2017: USD 1,010 million

Free Float: 35.5%

Shares Outstanding: 424,997,937

NASDAQ: VDTH

“strong, profitable growth seizing the indian dth

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