Hathway Cable & Datacom Ltd. · NSE:HATHWAY
Hathway Cable & Datacom — Investor Presentation (June 2016)
29 slides from Hathway Cable & Datacom's investor presentation, June 2016
Slide 1: Investor Presentation – June 2016
INVESTOR PRESENTATION – JUNE 2016 HATHWAY CABLE & DATACOM LIMITED BSE : 533162 | NSE : HATHWAY | Bloomberg : HATH:IN | Reuters : HAWY.NS www.hathway.com STRICTLY CONFIDENTIAL
Slide 2: India's Largest Cable & Broadband Footprint
INDIA'S LARGEST CABLE & BROADBAND FOOT PRINT Key Highlights 12.3 Mn Universe 10.6 Mn Digitized (87%) 0.6 Mn Primary Subscribers 3.3 Mn Broadband Homes Passed 0.62 Mn Broadband Subscribers (266K Docsis 3.0 Subscribers) Present in 200+ cities and towns Our vision is to be a single point access provide
Slide 3: Company Overview
COMPANY OVERVIEW Cable Revenue Financials FY 16 1,683 % over INR Crs FY12 FY13 FY14 FY15 FY16 FY12 FY 15 1,514 Revenue 1,011 1,139 1,583 1,832 2,082 206% FY 14 1,429 Growth 14.70% 11.90% 39.10% 15.69% 13.65% Cable Revenue FY 13 1,044 865 989 1414 1584 1683 95% Broadband Revenue 146 150 169 248 399 2
Slide 4: Company Capitalization Track Record
COMPANY CAPITALIZATION TRACK RECORD Promoted by the Rajan Raheja Group with Marquee Investors such as Providence, Capital Research and Tybourne Capital. 2014:Raised INR 4.5 Bn via 2013 : Promoter, preferential Providence Equity allotment to and Others Invest Capital Research 2012 : Providence and Ty
Slide 5: Broadband
BROADBAND STRICTLY CONFIDENTIAL PAGE 4
Slide 6: Wireline Broadband – Fixed is the New Mobile
WIRELINE BROADBAND – “FIXED IS THE NEW MOBILE” CABLE BROADBAND – THE PRIMARY BENEFICIARY Low Internet Penetration in INDIA Hathway’s Share in Broadband Space 2013 2014 2015 Wireless Wireless Narrrowband 100% Broadband, , 192.02 Mn 120 Mn 80% 60% 40% 20% 0% India Asia & The Europe Africa Pacific Amer
Slide 7: Wireline Broadband – Preferred Medium for Video Downloads
WIRELINE BROADBAND – “FIXED IS THE NEW MOBILE” CABLE BROADBAND – THE PRIMARY BENEFICIARY WIRELINE BROADBAND – PREFERRED MEDIUM FOR VIDEO DOWNLOADS MEDIUM USAGE Smartphones,Tablets : Around 1 GB per month @3G/4G Used Majorly for Social Media, You Tube, Mobile apps,Music Wireless, 20% MAJOR USAGE PC,L
Slide 8: Hathway DOCSIS 3.0 Services Competitively Priced
HATHWAY DOCSIS 3.0 SERVICES COMPETITIVELY PRICED Company Network Speed FUP Download Price Wireline 50 Mbps 15 GB Rs. 799/- Wireline 50 Mbps 50 GB Rs. 1,499/- Wireline 50 Mbps 15 GB Rs. 899/- Wireline 50 Mbps 50 GB Rs. 1600/- Wireline 40 Mbps 60 GB Rs. 1699/- Wireline 10 Mbps 33 GB Rs. 1,444/- Wireli
Slide 9: Pioneer in Cable Broadband Service
PIONEER IN CABLE BROADBAND SERVICE LARGEST CABLE BROADBAND OPERATOR Homes Passed Standalone Capex Nos - In Mn Rs. In Crs 3.5 3.3 250 3.0 206 2.5 2.3 200 2.0 1.8 150 1.5 118.3 1.5 1.0 100 1.0 0.4 40.9 50.1 0.5 50 20.7 22.5 0.0 FY 07 FY 10 FY 13 FY14 FY15 FY16 0 FY 11 FY12 FY13 FY14 FY15 FY16 Broadban
Slide 10: DOCSIS 3.0 Drives ARPU & Revenue Growth
DOCSIS 3.0 DRIVES ARPU & REVENUE GROWTH Revenue Growth Trend Revenue up by 2.4 X since FY14 450.0 CAGR : 54% 399.3 400.0 Docsis 3.0 Launched 350.0 300.0 247.8 250.0 200.0 168.8 +23% 124.4 150.0 +8% 100.7 81.1 +15% 93.1 100.0 50.0 - FY14 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 FY16 ARPU Growth Trend ARP
Slide 11: Broadband Unit Economics
BROADBAND UNIT ECONOMICS Revenue, Margin and Payback Investments / Subscribe Particulars Rs. / Unit % Age Particulars Rs. / Unit Consumer Price 978 115% Service Tax 128 15% Cost Per Home Pass 650 NET REVENUE 850 100% Penetration 20% Bandwidth and Leaseline 98 12% Cost Home Pass Capex Per Sub 3,250 C
Slide 12: Cable Television
CABLE TELEVISION STRICTLY CONFIDENTIAL PAGE 11
Slide 13: Attractive Cable Industry Dynamics
ATTRACTIVE CABLE INDUSTRY DYNAMICS FAVOURABLE IMPACT OF DIGITIZATION Digitization timeline Phase I II III * IV (completed) (completed) (on-going) (on-going) Regulated date of 31 Oct 2012 31 Mar 2013 31st Dec 2015 31st Dec 2016 implementation Completed by 1st Date of conversion Spread over FY13 Ongoi
Slide 14: Leading Digital Cable TV Platform
LEADING DIGITAL CABLE TV PLATFORM HATHWAY HAS BENEFITED THE MOST DUE TO DIGITIZATION Cable Cable Others Others Cable Phase IV DTH Cable DTH Cable 66% 73% DTH Cable Others Opportunity 28% 72% 32% 68% 79% 46% 54% = 70 Mn HH Hathway Hathway 27% 34% Hathway 21% Phase I Phase II Phase III 5x Growth in Ha
Slide 15: Dominant Market Share in Key Geographies
DOMINANT MARKET SHARE IN KEY GEOGRAPHIES 90% 85% 80% 70% 65% 65% 60% 60% 55% 50% 50% 45% Market Share 40% 40% 40% 35% 35% 30% 30% 20% 10% 0% Jaipur Raipur Gujarat Bangalore Aurangabad Bhopal Kolkata Pune Indore Mumbai Delhi Hyderabad Serving 200+ cities and towns STRICTLY CONFIDENTIAL PAGE 14
Slide 16: CATV ARPU & Revenue Trend
CATV ARPU & REVENUE TREND Subscription Revenue Growth * Revenue Up by 2.6 times since FY12 CAGR : 27% 900 816 800 731 700 598 600 500 400 346 312 300 200 100 - FY 12 FY 13 FY 14 FY 15 FY 16 ARPU Growth Trend Ph 1 CAGR : 28% Ph 1 ARPU up by 2.1 X since FY13 Ph 2 CAGR : 79% Ph 2 ARPU up by 5.7 X since
Slide 17: Growth Drivers
GROWTH DRIVERS Technology Initiatives Revenue Initiatives Customer Friendly Electronic Program Guide Customer Friendly Packaging (EPG) Telco Grade Billing & Revenue Management Expansion of HD System (SMS) Channels Prepaid billing for Primary Points Revamp in House Channels Hathway Connect - LCO Port
Slide 18: Unit Economics – Digitization Evolution
UNIT ECONOMICS – DIGITIZATION EVOLUTION INR / Sub/Month Secondary Point Primary Primary Digital With Digital With Particulars Digital HD+ RTU Tiering Tiering+ HD Monthly Consumer Price 235.0 275.0 425.0 425.0 275.0 - Entertainment tax 25.0 25.0 25.0 25.0 25.0 - Service tax 31.5 37.5 60.0 60.0 37.5 C
Slide 19: Partnership with Best in Class Technology Providers
PARTNERSHIP WITH BEST IN CLASS TECHNOLOGY PROVIDERS Pan-India presence - 23 digital head-ends with over 16,000 kilometers of HFC back-bone network STBs (SD & HD) CAS Head-ends/ Back-end & Compression Hardware ERP & Billing Modems System GPON STRICTLY CONFIDENTIAL PAGE 18
Slide 20: Experienced Senior Management Team
EXPERIENCED SENIOR MANAGEMENT TEAM Board members Sridhar Gorthi - Chairman & Independent Director Sasha Mirchandani - Independent Director Rajan Raheja - Non-executive Director – Founder and promoter Devendra Shrotri - Independent Director Akshay Raheja - Promoter & Non-executive Director Biswajit A
Slide 21: Key Financials
KEY FINANCIALS STRICTLY CONFIDENTIAL PAGE 20
Slide 22: Profit and Loss Statement
PROFIT AND LOSS STATEMENT CONSOLIDATED STANDALONE Financial (INR In Crs) FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Income Subscription CATV 291.9 584.5 838.9 816.4 125.5 336.6 449.5 447.6 Subscription Broadband 149.7 168.8 247.8 399.3 130.1 142.8 196.0 306.5 Placement 467.0 573.5 626.9 598.8 213.9 314
Slide 23: Balance Sheet
BALANCE SHEET Rs.in Crs Consolidated Standalone STATEMENT OF ASSETS AND LIABILITIES FY16 FY15 FY16 FY15 A. EQUITY AND LIABILITIES 1. Shareholders' Funds a. Share Capital 166.1 166.1 166.1 166.1 b. Reserves and Surplus 880.8 1,044.3 844.7 1,016.1 Sub Total - Shareholders' funds 1,046.9 1,210.4 1,010.
Slide 24: Promos
PROMOS STRICTLY CONFIDENTIAL PAGE 23
Slide 25: Hathway Relaunches Broadband with Sania Mirza as Brand Ambassador
HATHWAY RELAUNCHES BROADBAND WITH SANIA MIRZA AS BRAND AMBASSADOR STRICTLY CONFIDENTIAL PAGE 24
Slide 26: Hathway Cable Television
HATHWAY CABLE TELEVISION STRICTLY CONFIDENTIAL PAGE 25
Slide 27: Cable vs DTH – A Comparative Analysis
CABLE VS DTH – A COMPARATIVE ANALYSIS Cable DTH Bandwidth & technology • Able to support 1000+ channels • Channel capacity limited by transponder availability. Frequency band has rainfall attenuation issues Localization • Has the ability to change channel mix depending on region & hence better l
Slide 28: Safe Harbor
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
Slide 29: STRICTLY CONFIDENTIAL PAGE 28
STRICTLY CONFIDENTIAL PAGE 28
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