Hathway Cable & Datacom Ltd. · NSE:HATHWAY
Hathway Cable & Datacom — Investor Presentation (May 2015)
26 slides from Hathway Cable & Datacom's investor presentation, May 2015
Slide 1: Hathway Cable & Datacom Limited Investor Presentation – May 2015
HATHWAY CABLE & DATACOM LIMITED INVESTOR PRESENTATION – MAY 2015 BSE : 533162 | NSE : HATHWAY | Bloomberg : HATH:IN | Reuters : HAWY.NS www.hathway.com STRICTLY CONFIDENTIAL
Slide 2: 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 3: Company Overview
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 FY1
Slide 4: Company History
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 T
Slide 5: Key Business Highlights
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 fe
Slide 6: Cable Broadband – An Attractive Opportunity
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 5 –15GB per home per month @ 2
Slide 7: Pioneer in Cable Broadband Service
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
Slide 8: Pioneer in Broadband Services
PIONEER IN BROADBAND SERVICES ATTRACTIVE PRODUCT OFFERINGS Initiatives for Broadband growth Repositioning the company — Core product proposition — Hathway Broadband means “50 Mbps” — Affordable Highspeed Broadband — Best for HD video — Service proposition — 99.9% uptime — Gold standard customer su
Slide 9: Hathway Relaunches Broadband with Sania Mirza as Brand Ambassador
HATHWAY RELAUNCHES BROADBAND WITH SANIA MIRZA AS BRAND AMBASSADOR STRICTLY CONFIDENTIAL PAGE 8
Slide 10: Attractive Cable Industry Dynamics
ATTRACTIVE CABLE INDUSTRY DYNAMICS FAVOURABLE IMPACT OF DIGITIZATION Digitization timeline Phase I II III and IV (completed) (completed) (on-going) Regulated date Ph III-31 Dec 2015 of 31 Oct 2012 31 Mar 2013 Ph IV -31 Dec 2016 implementation Date of Spread over Completed by Ongoing conversion FY13
Slide 11: Leading Digital Cable TV Platform
LEADING DIGITAL CABLE TV PLATFORM HATHWAY HAS BENEFITED THE MOST DUE TO DIGITIZATION Digitization Status 120 30 Digital subs (mn) 100 80 60 40 5 77.9 3 20 9.5 13.5 0 Phase I Phase II Phase III & IV Cable Active DTH 7x Growth in Digital Subscribers 72% 9 70% 75% 8 CAGR: 65% 53% 7 49% 55% % of univers
Slide 12: Largest Digital Subscriber Base
LEADING DIGITAL CABLE TV PLATFORM HATHWAY HAS BENEFITED THE MOST DUE TO DIGITIZATION 10.00 72% 80% Largest Digital Subscriber base 8.00 54% 51% 60% 50% 6.00 (mn) 33% 40% 4.00 8.5 7.0 5.4 20% 2.00 2.7 2.9 0.00 0% Hathway Cable (Mar 2015) Den Networks (Mar 2015) Siti Cable (Mar 2015) In cable (March 2
Slide 13: Well Positioned to Capitalize Further on the Opportunity
WELL POSITIONED TO CAPITALIZE FURTHER ON THE OPPORTUNITY Highest proportion of revenue earning subscribers Dominant shares in key geographies including high share in metros 7.0 54% 56% 60% 90% 85% 80% 6.0 50% 70% 65% 65% % of universe Paying 5.0 37% 60% Paying subs (mn) 40% 60% 55% 50% 4.0 45% 50% 3
Slide 14: Superior Back End Technology Infrastructure
SUPERIOR BACK END TECHNOLOGY INFRASTRUCTURE 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 Modems OBRM STRICTLY CONFIDENTIAL PAGE 13
Slide 15: 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 Brahmal Vasudevan - Independent Director Akshay Raheja - Promoter & Non-executive Director Devendra
Slide 16: Hathway Is Poised for Growth
HATHWAY IS POISED FOR GROWTH Strong growth achieved in cable subscriber volumes in Phase I/II; Well positioned to capture a #1 large share of Phase III & IV subscriber market Strong upsides to Cable ARPUs from digitization, innovative offerings and localized content and #2 delivery #3 360 degree foc
Slide 17: Appendix
APPENDIX STRICTLY CONFIDENTIAL PAGE 16
Slide 18: Key Financials
KEY FINANCIALS STRICTLY CONFIDENTIAL PAGE 17
Slide 19: Profit and Loss Statement
PROFIT AND LOSS STATEMENT STANDALONE CONSOLIDATED HCDL- Standalone Financial FY15 Q4 FY15 Q3 FY14 Q4 FY 15 FY14 FY 15 FY14 INR Million Quarterly YTD YTD Income Net Sales/Income from Operations 2,690.8 2,380.2 2,920.4 10,194.4 9,772.8 18,279.5 15,811.2 Other Operating Income 9.5 11.3 6.8 34.7 31.5 36
Slide 20: Balance Sheet
BALANCE SHEET STANDALONE CONSOLIDATED Hathway Cable and Datacom Limited FY13 FY14 FY15 FY13 FY14 FY15 INR Million Income Share capital 1,431.7 1,520.0 1,661.0 1,431.7 1,520.0 1,661.0 Reserves and Surplus 6,582.1 7,721.3 10,161.3 6,792.3 8,073.0 10,443.2 Shareholder's Fund 8,013.8 9,241.3 11,822.3 8,
Slide 21: Other Slides
OTHER SLIDES STRICTLY CONFIDENTIAL PAGE 20
Slide 22: 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
Slide 23: Impact of Digitization
IMPACT OF DIGITIZATION DIGITIZATION LEADING TO STRUCTURAL CHANGE Strong growth in digital cable households; analog cable to diminish significantly – Digital cable to have the highest growth Strong growth in ARPU expected 200 293 183 300 172 9 162 266 289 9 152 ARPU per month (INR) 9 270 150 141 9 13
Slide 24: Attractive Industry Dynamics – Potential Market Consolidation
ATTRACTIVE INDUSTRY DYNAMICS POTENTIAL MARKET CONSOLIDATION Globally cable TV markets have consolidated such that top 4-5 players dominate most of the market share; with strong shareholders and access to capital, Hathway will be well placed to consolidate smaller operators Most global markets have 4
Slide 25: Products and Services Promotions
PRODUCTS AND SERVICES PROMOTIONS STRICTLY CONFIDENTIAL PAGE 24
Slide 26: STRICTLY CONFIDENTIAL PAGE 25
STRICTLY CONFIDENTIAL PAGE 25
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