Hathway Cable & Datacom Ltd. · NSE:HATHWAY
Hathway Cable & Datacom — Investor Presentation (December 2016)
32 slides from Hathway Cable & Datacom's investor presentation, December 2016
Slide 1: Investor Presentation – Dec 2016
INVESTOR PRESENTATION – DEC 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 12.9 Mn Universe 11.8 Mn Digitized (92%) 0.6 Mn Primary Subscribers 3.8 Mn Broadband Homes Passed 0.82 Mn Broadband Subscribers Present in 200+ cities and towns Our vision is to be a single point access provider, bringing into the home and
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 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 Tybourne
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 Nos. In Mn 100% 80% Wireless 60% Narrrowba Wireless nd 184.98 40% Broadband 20% 144.74 0% India Asia & The Europe Africa Pacifi
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/GPON Services Competitively Priced
HATHWAY DOCSIS 3.0/GPON SERVICES COMPETITIVELY PRICED Company Network Speed FUP Download Price Wireline 50 Mbps 60 GB Rs. 999/- Wireline 50 Mbps 100 GB Rs. 1,499/- Wireline 100 mbps 200 GB Rs 1,999/- Wireline 16 mbps 100 GB Rs 1,599/- Wireline 16 Mbps 50 GB Rs. 1,049/- Wireline 20 Mbps 45 GB Rs. 1,2
Slide 9: Pioneer in Cable Broadband Service
PIONEER IN CABLE BROADBAND SERVICE LARGEST CABLE BROADBAND OPERATOR Homes Passed-Standalone Capex-Standalone Nos - In Mn 3.8 Rs. In Crs 4.0 3.6 250 3.5 3.3 206 3.0 200 2.5 2.3 150 2.0 1.8 118.3 1.5 1.5 100 1.0 1.0 50.1 40.9 0.4 50 22.5 0.5 20.7 0.0 0 FY 07 FY 10 FY 13 FY14 FY15 FY16 Q1 FY17 Q2 FY17
Slide 10: DOCSIS 3.0 Drives ARPU & Revenue Growth (Standalone)
DOCSIS 3.0 DRIVES ARPU & REVENUE GROWTH (STANDALONE) ARPU Growth Trend ARPU up by 2.5X since FY13 CAGR : 25% 724 740 683 +45% 700 675 638 483 +51% +6% 301 320 FY13 FY14 FY15 Q1 FY16 Q2 FY16 Q3 FY16 FY16 Q1 FY17 Q2 FY17 Revenue up by 3.4 X since FY13 INR In Crs Revenue Growth Trend CAGR : 36% 306.5 1
Slide 11: DOCSIS 3.0 Drives ARPU & Revenue Growth (Consolidated)
DOCSIS 3.0 DRIVES ARPU & REVENUE GROWTH (CONSOLIDATED) ARPU Growth Trend ARPU up by 2.2X since FY13 CAGR : 31% 670 +26.4% +62.6% 530 +8.7% 300 326 FY13 FY14 FY15 FY16 Revenue Growth Trend Revenue up by 2.6X since FY13 INR In Crs CAGR : 39% 399.3 +61.1% +46.8% 247.8 +12.5% 168.8 150 FY13 FY14 FY15 FY
Slide 12: Broadband Unit Economics
BROADBAND UNIT ECONOMICS Revenue, Margin and Payback Investment / Subscriber 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 98 12% Leaseline Cost Home Pass Capex Per Sub 3,250 C
Slide 13: Cable Television
CABLE TELEVISION STRICTLY CONFIDENTIAL PAGE 12
Slide 14: 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 Jan 2017* 31st Mar 2017* implementation Completed by 1st Date of conversion Spread over FY13 Ong
Slide 15: 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% Others 73% DTH Cable Opportunity 28% 72% 32% 68% 46% 54% 79% = 70 Mn HH Hathway Hathway 27% 34% Hathway 21% Phase I Phase II Phase III Growth in Hathw
Slide 16: 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% Gujarat Bhopal Raipur Delhi Pune Hyderabad Indore Jaipur Mumbai Bangalore Aurangabad Kolkata Serving 200+ cities and towns STRICTLY CONFIDENTIAL PAGE 15
Slide 17: CATV ARPU & Revenue Trend
CATV ARPU & REVENUE TREND ARPU Growth Trend 120 102 105 105 105 100 100 100 100 90 83 86 86 76 80 80 75 67 60 50 40 30 30 25 20 15 15 0 FY13 FY14 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Phase I Phase II Phase III Subscription Revenue Growth* INR In Crs As per IGAAP As per IND AS 140 115
Slide 18: 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 19: 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 20: 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 19
Slide 21: 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 22: Key Financials
KEY FINANCIALS STRICTLY CONFIDENTIAL PAGE 21
Slide 23: Standalone Profit and Loss Statement Q2 FY17
STANDALONE PROFIT AND LOSS STATEMENT Q2 FY17 INR In CR Income Statement (Rs. In Crs) Y-o-Y Q-o-Q Q2 FY17 Q2 FY16 Growth Q1 FY17 Growth Income Subscription CATV 110.4 93.8 18% 107.7 2% Subscription Broadband 120.3 71.9 67% 104.6 15% Placement 65.4 84.8 -23% 66.3 -1% Activation 20.2 14.7 37% 18.7 8% O
Slide 24: Standalone Balance Sheet
STANDALONE BALANCE SHEET INR In CR As on As on ASSETS (Rs. In Cr.) LIABILITIES (Rs. In Cr.) 30.09.2016 30.09.2016 Non-Current Assets Equity Fixed Assets 1,756.2 Equity Share Capital 166.1 Financial Assets Other Equity 871.2 Investments 839.9 Total Equity 1,037.3 Other Financial Assets 88.0 Non-Curre
Slide 25: Profit and Loss Statement (IGAAP)
PROFIT AND LOSS STATEMENT (IGAAP) INR In CR CONSOLIDATED STANDALONE Financial 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.
Slide 26: Balance Sheet (IGAAP)
BALANCE SHEET (IGAAP) 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.
Slide 27: Promos
PROMOS STRICTLY CONFIDENTIAL PAGE 26
Slide 28: Hathway Relaunches Broadband with Sania Mirza as Brand Ambassador
HATHWAY RELAUNCHES BROADBAND WITH SANIA MIRZA AS BRAND AMBASSADOR STRICTLY CONFIDENTIAL PAGE 27
Slide 29: Hathway Cable Television
HATHWAY CABLE TELEVISION STRICTLY CONFIDENTIAL PAGE 28
Slide 30: 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 31: 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 32: STRICTLY CONFIDENTIAL PAGE 31
STRICTLY CONFIDENTIAL PAGE 31
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