Den Networks Ltd. Investor Presentation April 2018 Disclaimer The information in the presentation may contain “forward-looking statements” which are statements that refer to expectations and plans for the future and include, without limitation, statements regarding Den’s future results of operations, financial condition or business prospects as well as other statements based on projections, estimates and assumptions. In some cases, these statements can be identified by terms such as "expect," "intend," "plan," "believe," "estimate," "may," "will," "should" and comparable words (including the negative of such words). These forward- looking statements, reflect the current expectations and plans of the directors and management of Den, which may not materialize or may change. These forward-looking statements are not guarantees of future performance and you are cautioned not to place undue reliance on these statements. Den undertakes no obligation to update any forward-looking statements, whether as a result of new information or any subsequent change, development or event. All forward-looking statements in above are qualified by reference to this paragraph. 2 Industry and DEN Overview 3 TV Evolution in India (The entry of cable / satellite TV in India became the catalyst that drove expansion of TV in India) Pre-1990: Doordarshan Era Post-1990: The Satellite Era Terrestrial television in Introduction of Star, Zee, Sony and a few other players Shift from Analogue to India started with the National telecasts establish themselves Digitization Notification experimental telecast 20-30 channels on air starting in Delhi in Launch of Colour TV DAS Phase 1 and 2 digitization Sep’1959 in India Cable distribution: small scale/ local businesses achieved 1959 1982 1992-1995 2011-2014 1960s and 70s 1990-91 1995-2010 2015-2017 Series of economic and social reforms in 1991 Emergence of MSOs, with Pan-India Presence Digitization in Phase 3 under Prime Minister Narasimha Rao Channels go Encrypted/ Pay completed in Dec. 2016 The regular daily transmission Liberalisation of the broadcasting industry, Boom in number of channels (300+) Phase 4 in progress government allowed private and foreign started in 1965 as a part of All Emergence of digitalisation India Radio. broadcasters to engage in limited operations in Television services were India Industry starts Consolidating separated from radio in 1976. Cable TV introduced in India DEN Started Operations in 2007 Source: MPA, Company Analysis, Generic Web Search 4 India Digitisation Progress Phase I Phase II Delhi, Mumbai 38 ,Kolkata and Notified Chennai Cities 30 June’2012 31March’2013 Phase III Phase IV 7709 Rest urban of Areas India 31 Dec’2016 still underway 5 DEN – Overview CMP (INR) 100 Established in 2007, Den Networks has enhanced its product portfolio offering high speed Broadband services with a vision to provide bundle services to its customers. Equity Shares (mn) 196 Market Cap (mn) 19,587 13 Million Cable TV universe Provides cable services across 13 key states in India Shareholding Pattern (31-Mar-18) Home pass of 900k for Broadband with ~215k subscribers Promoters 36.45% Foreign shareholders 46.47% Experienced leadership team to spearhead growth; Others 17.08% Best in class customer experience – OTT application , tie-ups with Samsung and BARC implemented and gaming introduced New 100 cities FTTH broadband plan launched recently Revenues* (Rs. Cr.) FY’09-FY’17 CAGR +13% EBITDA Margin 1,141 23% 16% 391 2% FY'09 FY'17* FY'09 FY'17* FY'18 9 M* *FY2016-17 and FY18 9 M on Ind. AS basis (excludes Unconsolidated entities) 6 DEN – Improvement drivers Cable Focus on Core Businesses Broadband Non – Core businesses divested Football 100% TV Shop Focus on Cable Subscription Grew 27% Y-o-Y in 9M FY18 EBITDA* Bottom line focus – cash backed o Phase 1/2 : +28% - 30% o Phase 3 : +5% OTT APP launched - First MSO in the country Consumer FIRST Strong HD initiative Open box – Trial run in progress Broadband 100 cities Capex light model launched *Pre- activation 7 Snapshot : Q3 FY 2017-18 Financial results 8 Consol (Ind. AS) Highlights Rs in crs Rs in crs Quarterly Revenue Quarterly EBITDA** 328 330 82 81 315 313 59 61 293 53 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 Rs in crs Quarterly PAT Opex % Revenue 42% 1 2 41% 39% 35% 34% 17 Q3 17 Q4* 18 Q1 18 Q2 18 Q3 (10) (29) 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 (37) 9 *Before exceptional item **Consolidated Quarterly EBITDA for FY18 Q3 at Rs. 95 crores (incl. Associates) Cable Highlights (Ind. AS) Cable Quarterly EBITDA Rs in crs Total Revenue Rs in crs 83 82 308 312 293 291 59 61 272 52 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 Rs in crs PAT EBITDA % Revenue 27% 26% 10 10 21% 19% 20% 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 (2) (30) (49) 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 10 Subscription Revenue and key parameters – Ind. AS Subscription ARPU (INR) Active Subscribers (mn) 78 72 74 7.2 7.3 7.4 7.4 7.4 67 69 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 Rs in crs Subscription Revenue Subscription Collection efficiency 174 96% 95% 93% 93% 93% 164 157 154 144 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 11 Phase wise Per Box Subscription Revenue INR – Ind. AS DAS 1 DAS 2 DAS 3 DAS 4 Total 78 74 72 69 56 63 46 45 34 64 35 61 60 57 49 90 96 82 87 76 117 120 100 107 109 FY17 Avg. FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 12 Broadband Highlights Quarterly Revenue* Quarterly EBITDA * (in crs) (Rs in crs) 21 21 21 1 20 18 0 0 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 0 -1 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 * Year To Date Numbers 13 Broadband Highlights contd……. Homes passed (‘000) APRU (INR) 899 864 868 879 879 752 733 725 664 579 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 Subscribers (‘000) Avg consumption / Household (in GB) 78 80 215 75 205 193 67 177 159 59 * Year ToFY17 Date Q3 Numbers FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 14 Consolidated Debt position (Ind. AS) Rs. in crs Gross Debt Net Debt 697 522 519 493 499 171 169 141 123 133 Dec'16 Mar'17 June'17 Sep'17 Dec'17 Dec'16 Mar'17 June'17 Sep'17 Dec'17 15 Healthy balance sheet Dec'17 Sep'17 June'17 Mar'17 Gearing Ratio (Net) 0.16 0.15 0.14 0.19 Net Debt to EBITDA* 0.4 0.4 0.5 0.7 Debtors O/s (Days) 81 77 69 58 * Quarterly EBITDA divide by Net Debt 16 Broadband - 100 Cities plan launched 17 Our Vision – Wired Broadband Vision Enabling Wired Broadband access to Cable Homes by leveraging existing Cable TV infrastructure and affordable technology while ensuring superior customer experience. 18 India Internet Market Wired Broadband an Opportunity in waiting Wireless Internet Subscribers2 425Mn 284Mn + 2 Households Internet Subscribers 446Mn in India1 Wired Internet BSNL 59.08% MTNL 4.27% Subscribers2 21Mn Airtel 10.12% (18Mn Broadband ACT 6.02% Subscribers) Others 20.51% Current penetration of 6% offers HUGE opportunity for Wired Broadband 1 Media Partners Asia 2 TRAI Quarterly Performance Indicators Dec 2017 19 India Internet Market India’s Position in Asia pacific Wired Broadband Market Wired Broadband Subscribers as % of Households 90% 79% 80% 65% 70% 64% 60% 50% 40% 42% 37% 40% 34% 31% 26% 30% 19% 20% 10% 7% 6% 6% 10% 0% Australia China Vietnam Malaysia Thailand Philippines India 2012 2013 2014 2015 2016 Source: Media Partners Asia 20 India Internet Market Government’s push to Digital India Environment supportive of Fixed Broadband Government’s thrust to “Digital India” . Digital Transactions crossed 1 Billion mark in December 2017 (Source RBI provisional data) “Cities in the past were built on riverbanks. They are . BharatNet : already provided with Broadband now built along highways. connectivity to 100K Grampanchayats, targeted But in the future, they will 150K more by March 2019 (GOI, report submission in parliament) be built based on availability of optical fiber . Smart City Project: As of Jan 2018, 99 cites have networks and next- been identified as part of smart city mission. generation infrastructure.” Sh. Narendra Modi Honorable Prime Minister 21 Opportunity for DEN Synergizing the strengths for TRANSFORMATION Strengthening LMOs with state of the art, technology resources and support to offer wired Broadband Services. Technology Existing relationship with Homes and available resources, helps in customer acquisition Combined strength of Access to Leveraging Homes existing existing Cable TV OFC cable infra Infrastructure, lead to TRANSFORMING minimal Capital BROADBAND IN Commitment INDIA Multiple LMO within a city/town can be enabled in short span of time due to DEN has been household Fast name for last 10 years, existing synergy with Cable Coverage / Strong Brand enabling easy access to footprint. Scalability presence homes. Most Attractive Brand of Year 2017 – Cable TV Segment (As per TRA Research) 22 Way Forward – Focus Areas 23 Focus Areas – 3 pillars Increasing subscription collections from Phase 3 and 4 markets HD – Increasing penetration and subscription Broadband 100 Cities Plan 24 For Further Information Please Contact Jatin Mahajan Shogun Jain / Payal Dave [email protected] [email protected] / [email protected] +91 11 4052 2200 +91 77 3837 7756 / +91 98 1991 6314 DEN Networks Ltd.