HATHWAY CABLE & DATACOM LIMITED INVESTOR PRESENTATION – MAY 2015 BSE : 533162 | NSE : HATHWAY | Bloomberg : HATH:IN | Reuters : HAWY.NS www.hathway.com STRICTLY CONFIDENTIAL SAFE HARBOR The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to the context has been taken care off in the presentation and neither we undertake any obligation as to the regular updating of the information as a result of new information, future events or otherwise. We will accept no liability whatsoever for any loss arising directly or indirectly from the use of, reliance of any information contained in this presentation or for any omission of the information. The information shall not be distributed or used by any person or entity in any jurisdiction or countries were such distribution or use would be contrary to the applicable laws or Regulations. It is advised that prior to acting upon this presentation independent consultation / advise may be obtained and necessary due diligence, investigation etc may be done at your end. You may also contact us directly for any questions or clarifications at our end. This presentation contain certain statements of future expectations and other forward-looking statements, including those relating to our general business plans and strategy, our future financial condition and growth prospects, and future developments in our industry and our competitive and regulatory environment. 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. Actual results, performances or events may differ materially from these forward-looking statements including the plans, objectives, expectations, estimates and intentions expressed in forward looking statements due to a number of factors, including without limitation future changes or developments in our business, our competitive environment, telecommunications technology and application, and political, economic, legal and social conditions in India. It is cautioned that the foregoing list is not exhaustive This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision STRICTLY CONFIDENTIAL PAGE 1 COMPANY OVERVIEW Leading cable and broadband operator with subscriber universe of over 11.8 mn with over 8.5 mn subs digitalized and 2.3 mn Homes passed for broadband services Company overview Key Financials Promoted by the Rajan Raheja group, Company is one of India‘s leading INR Mn FY10 FY11 FY12 FY131 FY141 FY151 cable and broadband service providers Current subscriber base of ~11.8 mn with largest digital sub base of around 8.5 mn as at Mar 2015, with services offered across in 160 Revenue locations across India 7,369 8,780 10,109 11,394 15,832 18,316 Growth 10.50% 20.40% 14.70% 11.90% 39.10% 15.69% — Most successful player during digitization having seeded 6.4 mn set - Cable top boxes in last 36 months 6,104 7,515 8,648 9,897 14,144 15,841 — Carries 300+ channels and services on its network - Broadband First cable operator to offer broadband services - Currently India‘s 1,265 1,265 1,461 1,497 1,688 2,475 largest cable broadband provider, with ~2.3 mn broadband enabled EBITDA 1,295 1,541 1,676 2,741 3,014 2,599 homes Margin 17.60% 17.60% 16.60% 24.10% 19.00% 14.19% — Offering DOCSIS 3 services including high speed 50 MBPS Market cap connections with ARPUs over Rs. 750/month ~43,559 01-Jun-15 Net Debt 12,562 31-Mar-15 Shareholding pattern (31st Mar 2015) Revenue Breakup Key investors FY 10 FY 15 Others PROVIDENCE EUITY 9.78% DII PARTNERS Others Subs. Others Subs. 6.69% 4% (CATV) Broadband Broadband 36% 2% (CATV) P6 MAURITIUS INDIA 17% 14% 46% Promoter HOLDING 43.48% FII 21.05% SMALLCAP WORLD Providence FUND, INC & Others 18.81% RELIANCEEQUITY OPPORTUNITIES FUND Carriage Activation 42% (CATV) Carriage CLSA GLOBAL MARKETS 1% 34% Activation PTE. LTD (CATV) 4% 1. Gujarat Telelink Private Limited (―GTPL‖) consolidated for 12 months 2014 for calendar year , 9 Month for FY 13 and 15 months for FY15 CATV: Cable Television; FII – Foreign Institutional Investor; DII – Domestic Institutional Investor STRICTLY CONFIDENTIAL PAGE 2 COMPANY HISTORY Hathway has consistently been at the forefront of cable and broadband industry since the late 90s and has been backed by several large financial investors . Consumer Billing started in Phase 1 cities . Completed preferential issue of equity of Rs 450.2 Crs from Capital Research and Tybourne Capital . ~ 8.5mn STB seeded(72%) . News Corp acquires . OBRM – SMS Solution 26% equity stake in Implemented Hathway . Launched digital cable . Docsis 3 launched in . Hathway starts service and reached Bangalore & Hyderabad providing broadband 100,000 broadband . Providence & Others . Local Channel Launched, service on a DOCSIS subscribers . Raised INR 4.8 bn via acquire Newscorp ―Hathway CCC‖, Movies, platform an IPO stake Entertainment, Shopee and HTUBE 2009 2011 1998 2002 2013 2015 2014 2000 2004 2010 2012 . Purchased DB Corp‘s . First MSO to launch . Acquired 200,000 direct . Promoter funding & . First MSO in India to stake in Hathway HD Personal Video cable television . 1st national MSO to launch launch DVR services Bhaskar Multinet Recorder. subscribers in two years launch HD services . 320,000 broadband . Made preferential . Web Portal and subscribers allotment of Rs 2.5 bn to Android application . 1mn digital cable Promoters, Providence launched for LCOs subscribers & Others . Prepaid System . Docsis 3 launched in Launched Mumbai, Pune. Pre Digitization (Pre 2012) Post Digitization Phase 1 and 2 (post 2012) Note: ORBM – Oracle Revenue and Billing Management; STB – Set Top Box STRICTLY CONFIDENTIAL PAGE 3 KEY BUSINESS HIGHLIGHTS 1 2 Leading Digital Cable TV Platform Attractive Cable Industry Dynamics . Pan India player with over 11.8mn subscribers . Digitization to structurally change the Cable TV sector . Dominant share in key major cities / states . Leading to 4x growth in digital subs over next few years. Digital cable to be clear winner - gained c. 70% market share in Phase I / II . Greater proportion of direct subscribers leading to less reliance on LCO . Potential market consolidation of smaller players . Strong upside in ARPU from HD and Channel Packaging 6 High Quality Shareholders/Management 3 Underpenetrated Broadband Industry to drive growth . Mr. Rajan Raheja – belongs to one of the most well respected business family . Indian Broadband industry poised for growth with data boom and increasing broadband penetration . Marquee investors including Providence - media, communications, education and information investments focused fund with US$ 28 bn AUM . Indoor data consumption a more attractive opportunity as compared to outdoor . Senior management team with over 250 years of cumulative experience in media and telecom industry . Cable likely to be a key beneficiary of broadband growth 5 4 Pioneer in broadband services New initiatives leading to traction . Largest cable broadband player with 2.3 Mn homes passed and subscriber . Successfully launched several new localized channels across base of over 0.4 mn subs (penetration of 20%). Market share of 40% in entertainment categories cable broadband . Combo offering for Cable (HD) and Broadband with 50 MBPS speeds in . Opportunity to bundle offerings and increase ARPU: Relatively higher select cities ARPU of over INR 530 . Channel Tiering and Packaging and other value added services to boost . Launch of Docsis 3.0 with speeds up to 50 MBPS in key markets to drive ARPU‘s ARPU expansion to over Rs. 750 per month STRICTLY CONFIDENTIAL PAGE 4 CABLE BROADBAND – AN ATTRACTIVE OPPORTUNITY TO BENEFIT FROM INCREASE IN DATA CONSUMPTION Internet penetration in India is one of lowest across the region Indoor vs Outdoor Broadband Indoor Internet Penetration across Countries (per 100) Homes, Offices Japan 86 Korea 85 PC, 5 –15GB per home per month @ 2 Australia 83 laptop, Mbps + Hongkong 74 Smart TV Video, rich media , all others 80% Singapore 73 data Malaysia 67 usage China 46 200MB-3GB per user per month on Philippines 37 Smartphone WiFi @ 2 Mbps + Thailand 29 / Tablets Email, social, mobile apps, you tube, Indonesia 16 music India 15 0 20 40 60 80 100 Mobile Highlights on broadband opportunity (National Telecom Policy, 2012) 50MB to 1 GB per user per month on Smartphone EDGE/3G @ < 1 Mbps 20% Recognizes broadband connectivity as a basic necessity data / Tablets Email, social, mobile apps, you tube, To achieve 175 million broadband connections by the year usage music 2017 Encourages optimizing use of existing infrastructure including cable TV networks Data traffic: Low Medium High > 80% Source: World Bank, Company estimates STRICTLY CONFIDENTIAL PAGE 5 PIONEER IN CABLE BROADBAND SERVICE LARGEST CABLE BROADBAND OPERATOR Broadband – the next growth driver, Hathway well placed to cash in on the opportunity Homes Passed and Subscriber Base („000s) India‘s largest cable broadband provider, passing ~2.3 mn homes 2500 2,335 Currently reaching around 456k subscribers, comprising 20% of 2000 1,783 homes passed 1,488 1500 40% of the cable broadband market 1,035 1000 Customer base comprises individual, corporate and SME 416 440 456 500 357 332 customers 124 0 — Provides VAS such as hosting, co-location, corporate FY 07 FY 10 FY 13 FY14 FY15 mailing Subscribers Home Passed ('000s) Successfully running DOCSIS 3.0 – Oct 2013 with speeds up to 1 50 mbps India‟s Largest Cable Broadband Player To drive ARPU expansion to over to Rs. 600 per month Others, 60% Will enable additional VAS such as VDOC, Video Conference, VOIP etc, 40% Support IPv6 protocols 1.