Den Networks Limited · NSE:DEN

Den Networks — Investor Presentation (April 2018)

26 slides from Den Networks's investor presentation, April 2018

  1. Slide 1: Intimation of Analyst / Institutional Investor meetings

    April 23, 2018 The National Stock Exchange of India Limited BSE Limited Exchange Plaza, 15t" Floor, P J Towers Plot no. C/1, G- Block Dalal Street, Mumbai - 400001 Bandra Kula Complex Scrip Code- 533137 Bandra (E), Mumbai - 400051 NSE Trading Symbol- DEN Subject: Intimation of Schedule of Analyst /

  2. Slide 2: Den Networks Ltd. Investor Presentation April 2018

    Den Networks Ltd. Investor Presentation April 2018

  3. Slide 3: Disclaimer

    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

  4. Slide 4: Industry and DEN Overview

    Industry and DEN Overview 3

  5. Slide 5: TV Evolution in India

    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 start

  6. Slide 6: India Digitisation Progress

    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

  7. Slide 7: DEN – Overview

    DEN – Overview CMP (INR) 100 Established in 2007, Den Networks has enhanced its product portfolio offering high speed Broadband Equity Shares (mn) 196 services with a vision to provide bundle services to its customers. Market Cap (mn) 19,587  13 Million Cable TV universe  Provides cable services a

  8. Slide 8: DEN – Improvement drivers

    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

  9. Slide 9: Snapshot: Q3 FY 2017-18 Financial results

    Snapshot : Q3 FY 2017-18 Financial results 8

  10. Slide 10: Consol (Ind. AS) Highlights

    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 2 41% 42% 1 39% 35% 34% 17 Q3 17 Q4* 18 Q1 18 Q2 18 Q3 (10) (29) 17 Q3 17 Q4 18 Q

  11. Slide 11: Cable Highlights (Ind. AS)

    Cable Highlights (Ind. AS) Total Revenue Cable Quarterly EBITDA Rs in crs 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 EBITDA % Revenue Rs in crs PAT 27% 26% 10 10 20% 21% 19% 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 (2) (30) (49) 17 Q3 17 Q4 18 Q1 18

  12. Slide 12: Subscription Revenue and key parameters – Ind. AS

    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 95% 96% 93% 93% 93% 164 157 154 144 1

  13. Slide 13: Phase wise Per Box Subscription Revenue INR – Ind. AS

    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 96 90 82 87 76 117 120 100 107 109 FY17 Avg. FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 12

  14. Slide 14: Broadband Highlights

    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

  15. Slide 15: Broadband Highlights contd…

    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 Avg consumption / Subscribers (‘000) Household (in GB) 78 80 215 75 205 193 67 177 159 59 * Year ToFY17 DateQ3 FY17 Q4

  16. Slide 16: Consolidated Debt position (Ind. AS)

    Consolidated Debt position (Ind. AS) Rs. in crs Gross Debt Net Debt 697 522 519 171 493 499 169 133 141 123 Dec'16 Mar'17 June'17 Sep'17 Dec'17 Dec'16 Mar'17 June'17 Sep'17 Dec'17 15

  17. Slide 17: Healthy balance sheet

    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

  18. Slide 18: Broadband - 100 Cities plan launched

    Broadband - 100 Cities plan launched 17

  19. Slide 19: Our Vision – Wired Broadband

    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

  20. Slide 20: Wired Broadband an Opportunity in waiting

    India Internet Market Wired Broadband an Opportunity in waiting Wireless Internet Subscribers2 425Mn 284Mn + Households Internet Subscribers2 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

  21. Slide 21: India’s Position in Asia Pacific Wired Broadband Market

    India Internet Market India’s Position in Asia pacific Wired Broadband Market 90% Wired Broadband Subscribers as % of Households 79% 80% 70% 65% 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 201

  22. Slide 22: Government’s push to Digital India

    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

  23. Slide 23: Synergizing the strengths for TRANSFORMATION

    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 Acces

  24. Slide 24: Way Forward – Focus Areas

    Way Forward – Focus Areas 23

  25. Slide 25: Focus Areas – 3 pillars

    Focus Areas – 3 pillars  Increasing subscription collections from Phase 3 and 4 markets  HD – Increasing penetration and subscription  Broadband 100 Cities Plan 24

  26. Slide 26: For Further Information Please Contact

    For Further Information Please Contact Jatin Mahajan Shogun Jain / Payal Dave InvestorRelations@DenOnline.in jshogun@sgapl.net / dpayal@sgapl.net +91 11 4052 2200 +91 77 3837 7756 / +91 98 1991 6314 DEN Networks Ltd. Strategic Growth Advisors Pvt. Ltd. (CIN No. L92490DL2007PLC165673) (CIN No. U74140

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