Ortel Communications Limited · NSE:ORTEL
Ortel Communications — Q4 FY2015 Earnings Presentation
21 slides from Ortel Communications's earnings presentation, April 2015
Slide 1: Ortel Communications - Bringing Convergence to India
Ortel | communications An ISO 9001 2008 COMPANY ‘BRINGING CONVERGENCE TO INDIA’
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements”, including -those-relating tothe business, financial performance, strategy and results of the Company and/or the industry in which it operates. The forw
Slide 3: Table of Contents
Table of Contents Introduction Q4 & FYI5 Performance Highlights Segment-wise Performance Overview Region-wise Performance Overview Annexures ©
Slide 4: At a Glance
At a Glance LAST MILE Owns & operates its network 22,629 Kilometers of cable network 37% EBITDA margin RIGHT OF WAY Legal ‘rights of way’ for entire network 810,414 Estimated homes reached 11% Total broadband subscribers Note: Figures highlighted above are as on March 31, 2015 Direct customer access
Slide 5: Ortel: Dominant Regional Player with Direct to Consumer Offering
Ortel: Dominant Regional Player with Direct to Consumer Offering 4“ * Regional cable television and broadband provider focused in md Indian states of Odisha, Chhattisgarh, Andhra Pradesh and West Bengal = Addressable market. of ~5 mn homes; 530k _ RGUs | covered Rapidly growing markets with maximum
Slide 6: Differentiated Play As Compared To Peers
Differentiated Play As Compared To Peers aos Operating model in-line with Global Players i.e. B2C, unlike the more prevalent B2B business model in India Current business model of most MSOs in India besides Ortel, is largely based on the B2B platform = whereby they operate through franchisees / “COs
Slide 7: High Quality Network Infrastructure With Legal 'Rights of Way'
Way’ High Quality Network Infrastructure With Legal ‘Rights eee / « Two-way enabled communication network Across Head end that can provide triple play services of video, data and voice 22 629 48 34 5 | + Network ready for deployment of digital | Mood a> . . services without further up gradation + Le
Slide 8: Growth Strategy
Growth Strategy Deeper penetration in existing geographies and entry into new geographies Increase broadband subscriber base Increased penetration of digital television services Leasing of fibre infrastructure to corporates Expansion through buyout of network equipments, infrastructure and subscribe
Slide 9: Key Operating Highlights
Key Operating Highlights Total Homes Passed ~TotabRGUs Inactive RGUs (as a % of total RGUs) Churn (Not Annualised) Digital Cable TV RGUs (Primary) Digital Cable TV RGUs (Secondary) Analog Cable TV RGUs (Primary) Analog Cable TV RGUs (Secondary) Total Cable TV RGUs Broadband RGUs (Primary) Primary RG
Slide 10: Key Operating Highlights (Cont'd.)
Key Operating Highlights (Cont’d.) Y13 FY14 FYI5 | Q4FYI4 | QLFYIS | Q2FYI5 | Q3FYIS Q4 FY15 Total owned network length Kms 21,046 21,614 22,629 21,614 21,774 21,875 22,411 22,629 Towns covered Nos. 48 A8 Sabet Bice A8 48 48 48 48 Corporate Broadband Customers Mbps 719 785 719 813 834 806 785 INR/ S
Slide 11: Statement of Operations
Particulars (Rs. million) Q4 FY14 Revenues from operations 334 Other Income 16 (71%) Total Revenve. 30% Total Expenditure 10% - Programming Cost 80 6% - Bandwidth Cost 67 61 16 12% - Employee Benefit Expenses 167 142 31 44% - Other Expenses 439 391 97 2% EBITDA (Excluding Other Income} 533 374 204 1
Slide 12: Balance Sheet Summary
Particulars (Rs. million) Assets Non-current assets Current assets Total assets Liabilities Shareholders’ Funds Non-current liab Current liabi Total Liabilities CAPEX Operating free cash flow (EBITDA — Capex) Gross Debt Net Debt Networth As on Mar 31, 2015 As on Dec 31, 2014 As on Mar 31, 2014
Slide 13: Key Financial Ratios
Key Financial Ratios Particulars Y14 FY15 Q4 FY14 | QUFY15 | QZ FYI5 | Q3FYI5 | Q4FYI5 Cable TV gross margin 67% 68% 69% 67% 68% 69% 70% ___ Broadband gross margin 84% 83% 84% 83% 84% 83% 83% EBITDA margin (Excluding Other Income) . 29.1% 34.5% 33.2% 30.1% 25.4% 34.3% 45.4% EBITDA margin (Including
Slide 14: Segment-wise Revenue Breakdown
Particulars (Rs. million) Connection Fees — Cable TV Cable Subscription Fees Channel Carriage Fees Total Cable TV Services Revenue Connection Fees — internet internet Subscription Fees Total Broadband Services Revenue income from Infrastructure Leasing Other operating income Total Revenue from Opera
Slide 15: Region-wise Summarized Statement of Operations
| 4) Region-wise Summarized Statement of Operations Core Market (Odisha) poricoiers 6a Gl, bem | FY15 FY14 ‘{Y-0-Y Growth} Q4FY15 | Q4FY14 |Y-0-Y Growth Total revenues 1,446 1,169 277% 418 307 112% EBITDA 674 483 190% —S-220 133 87% EBITDA margin 46.6% 41.3% 520 bps 52.5% 43.4% 920 bps Home Passed 6
Slide 16: FY2015 Financial and Operational Discussions
FY2015 Financial and Operational Discussions In FY2015, Total Income registered healthy growth of 21% due to increase in RGUs (Revenue Generating Units) — Increase in Channel Carriage fees and Infrastructure Leasing also contributed to the performance during the year. The Company expects these busin
Slide 17: Key Developments
Key Developments Successful IPO: Raised Rs. 1,086 million through Initial Public Offering (IPO) of 60,00,000 equity shares of face value of Rs. 10 each at a price of Rs. 181 per equity share PAT Positive: Reported annual profit of Rs. 56 million during FY1 5 LCO Buyout: Signed network buy out agreem
Slide 18: Management Comment
Management Comment Ey Commenting on the performance, Mr. Bibhu Prasad Rath, President & CEO at Ortel Communications said: _“I am pleased to report that the Company delivered healthy performance during the quarter and full year on the back of growth in Revenue Generating Units (RGUs) in Cable and Bro
Slide 19: Glossary
Glossary CAGR DOCSIS DTH HFC HHT LCOs MSOs NVoD RGUs VoD NM Average Revenue Per User Per Month Business to Business Business to Consumer Compounded Annual Growth Rate Data Over Cable Service Interface Specification Direct-to-Home Hybrid Fibre Coaxial Hand Held Terminals Local Cable Operator Multi Sy
Slide 20: Analyst Meet Invite
Analyst Meet Invite Ortel Communications’ First Analyst and Investor Meet Post Listing Day and Time Wednesday, April 22, 2015 at 04.00pm IST The Mansion - Gallery North, Four Seasons Hotel, 24 Floor, 114, Dr. E. Moses Road, Worli, Mumbai R.S.V.P Bridget Carvalho CDR India Mumbai Ph: +91 22 6645 1224
Slide 21: About Us
About Us Ortel Communications Limited (ORTEL) oe oe Ortel Communications (NSE Code: ORTEL; BSE Code: 539015) is a regional cable television and high speed broadband services _ provider focused in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh and West Bengal. The Company has built a two-w
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