Siti Networks Limited · NSE:SITINET
Siti Networks — SITI Cable Network — Investor Presentation (July 2013)
26 slides from Siti Networks's investor presentation, July 2013
Slide 1: SITI Cable Network Limited Business Presentation July 2013
SITI Cable Network Limited Business Presentation July 2013 1
Slide 2: Disclaimer
Disclaimer Some of the statements made in this presentation are forward-looking statements and are based on the current beliefs, assumptions ,expectations, estimates, objectives and projections of the directors and management of SITI Cable Network Limited (SITI Cable) about its business and the indu
Slide 3: Highlights
Highlights India Overview Indian TV Industry Indian Cable TV Distribution Industry Digitization SITI Cable Overview SITI Cable Key Financials Future Outlook & Way Forward Board of Directors Team SITI Cable 3
Slide 4: Thought Leadership: If content is king, distribution is god
SITI Cable: Thought Leadership… “IF CONTENT IS KING, DISTRIBUTION IS GOD ” Mr. Subhash Chandra, Chairman 4
Slide 5: India: A billion+ consumers, a trillion+ dollar economy
India: A billion+ consumers, a trillion+ dollar economy A trillion dollar economy, growing ~ 5-6% India GDP Growth Rate (%) annually 10 1.2 billion consumers, 254 million 9 9 8.4 households 8 7.4 A significantly large and growing middle class 7 6.7 6.5 A vast pool of employable English-enabl
Slide 6: Indian TV Industry: Cruising ahead with élan
Indian TV Industry: Cruising ahead with élan A USD 6.5 billion industry today, India - TV Households ( Mn. HHs) poised to double by 2016 and TV Penetration 181 3rd largest in the world, beaming 600 162 169 175 155 148 channels across 19 genres 141 155 million TV households, 133 million 59% 60%
Slide 7: Indian Cable TV Distribution Industry: A Sleeping Behemoth
Indian Cable TV Distribution Industry: A Sleeping Behemoth India – C&S Households ( Mn. HHs 1900+ MSOs, 50,000+ LCOs operating today and C&S Penetration (%) 172 Top 8-10 MSOs control 60% of the market 164 154 Transforming to organized and resilient business 144 133 Addressability becoming a
Slide 8: Indian Cable TV Distribution Industry: Competitive Landscape
Indian Cable TV Distribution Industry: Competitive Landscape Emerging dominance of National MSOs like SITI Cable, Hathway, DEN, Digicable & In cable Strong presence of several regional players like Sumangali, Ortel, Asia net Consolidation is an inevitable reality, going forward Rapid spread
Slide 9: Absolute digitization: Sunset Analog. Sunshine Growth
Absolute digitization: Sunset Analog. Sunshine Growth Digital penetration in India is amongst the lowest in Asia Complete digitization by December 2014 proposed India 28% Thailand 57% 4 metros – Delhi, Mumbai, Kolkata & Srilanka 77% Chennai Japan 90% Cities with 1 million+ population by Indone
Slide 10: SITI Cable: The Pioneer in Indian Cable TV Distribution
SITI Cable : The Pioneer in Indian Cable TV Distribution The oldest and one of the largest MSO’s in India Listed entity with professional board and strong Corporate Governance practices First and only company in the digital cable space to provide “Own Your Customer (OYC)” web based subscriber m
Slide 11: SITI Cable: A Part of Essel Group
SITI Cable : A Part of Essel Group USD 4 billion Essel Group Present in 167 Countries across the globe Strong bouquet of 37 Channels including strong TV brands like ‘Zee TV’, ‘Zee News’ Strong DTH brand, ‘Dish TV’ Country’s largest Content distribution company, “MediaPro” (JV between Zee a
Slide 12: SITI Cable: Strong pan India presence
SITI Cable: Strong pan India presence Uttar Pradesh Kanpur Greater Noida Punjab Varanasi Jharkhand / Bihar Ludhiana Noida Jamshedpur Chandigarh Allahabad Patna Amritsar Gorakhpur Haryana Dhanbad Jalandhar Ghazipur Hissar Azamgarh Rohtak Basti Jind Mughal Sarai Faridabad Mau Pa
Slide 13: SITI Cable: Distribution Chain
SITI Cable : Distribution Chain Broadcasters Siti Cable - MSO Distributor LCO (Local Cable Household/ Operator) Consumer 13
Slide 14: Robust Business Model: Dynamic & Evolving
SITI Cable Robust Business Model: Dynamic & Evolving PAST PRESENT FUTURE LCOs received feed from WWIL Analogue: Aggressive roll out of Digital services (now SITI Cable) and paid fees on Focus on enhancing productivity of negotiated declared subscribers’ existing network Shifting of analogu
Slide 15: SITI Cable: Analog Revenue Mix
SITI Cable : Analog Revenue Mix Revenue Mix AMS 8% SMS 27% Carriage 65% 15
Slide 16: SITI Cable: Digital Revenue Mix
SITI Cable : Digital Revenue Mix Revenue Mix VAS, 20% Carriage, 15% SMS, 65% 16
Slide 17: SITI Cable: Geared up to lead the digital revolution
SITI Cable : Geared up to lead the digital revolution 10 million+ customers Spread across 60 key cities 14 Digital & 56 Analog Head Ends 8 Regional offices and over 400 Employees Operations through 4000 LCOs partners Diversified revenue streams Digital Cable Analog Cable – Transformi
Slide 18: SITI Cable: Geared up to lead the digital revolution
SITI Cable : Geared up to lead the digital revolution Huge network of 12000kms of optical and coaxial fibre spread across the country Carrying digital signals on STM4 technology provides robust, redundant and scalable distribution Tie-ups with global technological giants: Set Top Box Vendors
Slide 19: SITI Cable - Advantage
SITI Cable - Advantage Strong Brand - SITI is synonymous with cable distribution In-depth knowhow of LCOs’ landscape and mindset Strong bouquet of group channels Successful foray into broadband services MediaPro: the game changer a JV that brings 60 channels of Zee Turner and Star Den un
Slide 20: Financial Snapshot - 6 Year Key Financials
SITI Cable: Financial Snapshot-6Year Key Financials Revenue and EBITDA - In Mn Revenue Operating Profit/EBITDA 4836.64 3642.62 3167.26 3014.61 2855.04 2807.23 869.61 163.59 192.00 -38.49 FY 2008 -46.53 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 -631.50 20
Slide 21: Financial Snapshot - 6 Quarter Key Financials
SITI Cable :Financial Snapshot–6 Quarter Key Financials Revenue & EBITDA - In Mn Revenue Operating Profit/EBITDA 1474.39 1247.12 1135.03 1039.82 957.11 919.44 277.42 260.17 189.26 202.48 45.95 31.09 Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 21
Slide 22: SITI Cable: Future Outlook
SITI Cable: Future Outlook GROWTH DRIVERS Customer need for better quality Rapid increase in acceptance and market share of Digital distribution Regulatory Mandate for digitization Technology FUTURE GROWTH HOT-SPOTS Broadband IPTV (Internet Protocol Television) Consolidation, acqui
Slide 23: SITI Cable: Way Forward
SITI Cable: Way Forward Focus Areas Strengthening the ground team to support digitization Improving ARPU and ground collection Strategic acquisitions and partnerships Acquisition of direct points, subsequent digitization Value Added Service to help in customer retention Strategy Incr
Slide 24: SITI Cable: Board of Directors
SITI Cable: Board of Directors Mr. Subhash Chandra Chairman Mr. Brijendra K. Syngal Mr. Suresh Kumar Agarwal Independent Director Independent Director Mr. Subodh Kumar Mr. V D Wadhwa Mr. Vinod Kumar Bakshi Non Executive Director Executive Director & CEO Independent Director 24
Slide 25: SITI Cable: Management Team
SITI Cable: Management Team Previously served as Managing Director & CEO with Timex Group for their Business Operations in India and SAARC Countries Mr. Wadhwa is credited with profitable turnaround of Timex operations in India and establishing retail operations in India and South Asian Countrie
Slide 26: Thank You!
Thank You! www.siticable.com 26
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