NDL Ventures Limited — Investor Presentation 2020

Aug 3, 2020

Date: August 03, 2020

Department of Corporate Services,	Department of Corporate Services,
BSE Limited,	National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers,	Exchange Plaza,
Dalal Street,	Bandra-Kurla Complex,
Mumbai – 400 001	Bandra (East),
Scrip Code: 500189	Mumbai – 400 051
	Scrip Code: NXTDIGITAL

Subject: Presentation at Virtual Meeting on Monday, August 03, 2020 - FY2020 Performance of NXTDIGITAL Limited ("the Company").

Regulation 30(6) of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015,

Dear Sir/Madam,

Further to our letter dated July 28, 2020, intimating about conducting of a virtual meeting to discuss the FY2020 performance and share the progress of the company made in the electronic media digital platform on Monday, August 03, 2020 at 16:00 hrs. IST.

We are forwarding the presentation to be made at the said virtual meeting today at 16.00 hrs IST.

The presentation is also made available on the website of the Company viz. www.nxtdigital.in

Thanking you.

For NXTDIGITAL LIMITED (formerly known as Hinduja Ventures Limited)

MANSUKHAN I ASHOK HIRANAND Digitally signed by MANSUKHANI ASHOK HIRANAND Date: 2020.08.03 14:05:16 +05'30'

Ashok Mansukhani Managing Director DIN: 00143001

Encl.: As above

(formerly known as Hinduja Ventures Limited)

Registered Office: IN CENTRE, 49/50 MIDC, 12TH Road, Andheri (E), Mumbai – 400 093 T: +91 – 22 – 2820 8585 W: www.nxtdigital.co CIN. No. L51900MH1985PLC036896

HINDUJA GROUP

NXTDIGITAL Limited INVESTOR PRESENTATION FY20 Performance

03rd August 2020

Version vF3

The Hinduja Group

25 Year legacy of delivering digital content

Headend-in-the-Sky (HITS)

The LCO can go digital within 24 hours anywhere across India by simply installing a proprietary Cable Operator Premise Equipment (COPE)

Does not require to be connected to any fibre etc. and is not affected by weather conditions

No additional technology or satellite capacity is required to add subscribers leading to low Customer Acquisition Costs

Signals are received directly from satellite, irrespective of the location of the Local Cable Operator (LCO)

Low maintenance COPE system consuming low power and occupies less space making it attractive for LCOs

Technology compliant with DAS and NTO regulations

HITS technology enables seamless Digital TV penetration in even remote areas in cost-effective manner and offers sizable network sharing opportunity

HITS emerges as a clear winner among digital content delivery modes

Parameter	HITS 1 Operator - NXT	Cable TV >1,600 MSOs	DTH 4 Operators
Pan-India reach	YES : Satellite footprint across India+	NO	YES
Weather resistance (rain attenuation)	YES : Service in C-band	YES	NO
Unaffected by fibre cuts, hostile terrain	YES : Delivery via satellite so zero dependence on terrestrial issues	Challenges of fibre cuts as well as hostile terrain	YES
Channel expansion + addition of Value added Services without significant capex	YES : Unique tech. to add channels at low cost	Requires investment in main head-ends	Capacity constraints as same satellite required
Ability to provide Managed Services	YES : System designed to provide managed services with multiple tech. combinations	Highly limited to area of operation only, requires addl. costs	NO
Easy installation for MSO/LCO	YES : Specially designed single unit COPE	Requires investment and timeframe	N/A
Low franchisee + subscriber addition cost	YES : Can expand to any geography	Limited to area of operation only	NO
Digital services provisioning	YES : System designed to function as a "connected" platform	YES	NO

NXTDIGITAL being the only HITS platform in the country enjoys significant competitive advantage

NXTDIGITAL: India's premier integrated digital distribution platform

Delivering services through multiple avenues

Digital Content Delivery 25-year legacy of delivering digital content services via HITS and Cable TV as a Multi Systems Operator (MSO)

700+ TV services across India through HITS

730+ TV services in 100+ key cities through Cable TV

Total Subscriber base of > 5.2mn on HITS and CATV

Only platform to offer Managed Services to other MSOs and LCOs nationwide

5.16 mn subscribers under executed managed services contracts – onboarding commenced

E2E technology Infrastructure provided to MSO customers leveraging HITS

Broadband Services

Managed Services

Broadband subscriber base of >300,000 users >5,000 kms of Underground & Overhead optical fibre networks delivering high speed internet and FTTH

~70,000 Buildings Ready for Installation

60% subscribers from fast growing segments of semi-urban and rural India

Presence in over 1,500 cities and towns across India with >30,000 feet-on-street

Recently undertook restructuring to simplify holding structure and better align businesses to facilitate growth

HGL, ICL, AE LLP

OIL

Broadband

IEIL

100%

Movie rights, Shop 24x7, CVO & Treasury

AE LLP – Aasia Enterprises LLP.; HGL – Hinduja Group Ltd..; ICL – IndusInd Communications Ltd.; IEIL – In Entertainment (India) Ltd.; IMCL – IndusInd Media & Communications Ltd.; OIL – ONEOTT Intertainment Ltd.

Our CXO Team

Ashok P Hinduja, Non-Executive Chairman & The Hinduja Group

• Chairman of the Board who also chairs Hinduja Group of Companies (India) and IIHL (promoter of IndusInd Bank) among other group companies
• The Hinduja Group, founded by P.D. Hinduja, has a history of over a century running successful businesses across sectors such as Automobiles, Oil & Gas, Media, BFSI, IT & ITES etc.

Vynsley Fernandes CEO

• § Veteran of the Media & Entertainment industry with 30+ years of experience
• § Hands-on experience with DTH & HITS platforms, digital cable networks, and news & entertainment channels
• § Formerly led assignments across organizations like Star India, 21st Century Fox & TATA SKY

N K Rouse COO

§ 33+ years of diverse experience; Has served at Star India, YOU Broadband, Hathway Cable & Datacom

Yugal Kishore Sharma CEO, OIL

• § Masters in International Marketing from IIFT
• § 26+ years of experience in the technology space
• § Extensively worked across the internet service provider (ISP) industry
• § Formerly led assignments across organisations such as DEN Networks & Tikona

Ruwanmali Ediriwira CTO

§ 20+ years of experience in the TMT space; led some of the biggest technology projects at Vodafone UK and Accenture Europe

Amar Chintopanth CFO

• § Chartered Accountant with an experience of 36+ years across areas of Audit, Finance & Accounts, Taxation, Treasury, Compliance, Business strategy, M&A, Capital raising etc.
• § Has served in coveted corporates such as the ITC Group, Polaris, and 3i Infotech & has been with the Hinduja Group since 2014

Ajay Sharma, General Counsel

§ Over 3 decades of legal experience, with much of it in media and allied laws; Ex-Arthur Anderson, Star India

Industry Trends

Television is here to stay and grow in a sustainable fashion…

TV penetration in India yet to catch up with the developed world…

Number of players in India reflects potential of the market…

No. of Players	2018	2019
MSO	1,471	1,632
DTH	5	4
HITS	1	1

NXTDIGITAL remains the only HITS platform in the country

… with semi-urban, semi-rural and rural India emerging as the prime growth drivers

New Tariff Order (NTO): MSOs benefit as content costs become pass-through

MSO's witnessed a sharp increase in share of customer ARPU due to NTO implementation

Greater share of ARPUs + Increase in ARPUs = Enhanced Profitability of MSOs

Note: S-1: As-is situation with no change in channel pack, post-NTO implementation (100 FTA channels plus pay channels); S-2: A scenario where subscribers opt only for channels that they want to view (25 government-mandated channels plus select pay channels) to reduce or maintain their payout/existing TV bill

In a post Covid world, TV viewership has increased significantly...

…driven primarily by growth in more sticky kids segments

High growth in premium audiences and Non-Prime Time viewership further adding to growing importance of TV in people's lives

(Viewership growth vs. pre-Covid levels in Wk 26 starting 27th June)

	All India	HSM	South
All Day	15%	17%	11%
Non-Prime Time	43%	55%	28%
Prime Time	-10%	-12%	-6%

DPOs benefitting through surge in ARPUs &

renewal of defunct connections è Further subscriber addition expected

Our Business

Sustainable and growth-oriented business model in play

Only Multi-System Operator in the country with a "pre-paid" base of over 99.5%

Only dual service with a HITS platform in Asia

Delivering maximum number of TV channels across cable & satellite

Delivering services pan-India to over 1,500 locations > 50% districts

Network of over 9,000 franchisees across the country

Sophisticated broadcasting centre in Noida & data centre in Mumbai

80% of LCOs collecting from customers through digital means

>55% of subscriber base of 5mn estimated to use digital payment

Focus on KPIs like On-Time & Same-Month Renewal, churn etc.

Only platform to offer "Managed Services" to other MSOs & LCOs, pan-India

Existing contracts for ~5.16mn customers pending execution

No additional technology or capacity required for subscriber addition

Will help regional and independent MSOs sustain and grow

Leverage existing CATV customers for increasing subscriber base

~70,000 buildings ready for installation

>300,000 subscribers and a steady growing base under the flagship One GigaFiber

Well laid out business model with sizeable addressable market and high operational leverage

6-steps towards scaling at a fast pace…

Technology

§ Continue to deploy new products and solutions to stay ahead of the curve, like advanced hybrid STBs

Upselling

• § Re-engineer approach to grow yield through product upselling (FTA è pay SD è pay HD)
• § Develop regional flavor drivers

Digital Initiatives

• § Conversion of subscriber base to adopt digital renewals
• § Enhance LCO digital engagement & capabilities

Managed Services

• § Extend Managed Services to regional & smaller MSOs
• § 1,600+ MSOs in India as addressable market

Essential toolkit

• § Support LCOs to adapt offering "bundled" products – HITS or CATV + Broadband + VAS
• § Cross-selling services to existing 5.2mn customer base
• § Strategic alliances for toolkit products like CCTV etc.

Retention

2

• § Improving On-Time and Same-Month Renewals
• § Strategic alliances with OTT partners
• § Launch new packages to drive retention, like VoD services etc.

4

5

3

^{6 1}

…with future growth drivers firmly in place

Potential to offer services to peers and emerge as a significant player basis the unique technology deployed

Fragmented CATV market with 69% of the ~100mn CATV base comprising smaller MSOs – ranging in size from 50,000 to 250,000; and in exceptional cases up to 1mn

Several MSOs looking to either reduce operating expenses as well as stay relevant in the new digital era; or exit the business

NXTDIGITAL can look to expand its serviced base from >10mn to around 30% of this base, either through managed services or acquisitions; taking its total serviced subscribers to >30mn

The Digital Boutique

NXTDIGITAL has all the elements for a pan-India E2E digital play and beyond…

Captive reach (via CATV & HITS), broadband & FTTH (via OIL) and content (via INE). Further extensive reach to over 50mn touch points through group companies

In the emerging digital play, NXT will look to offering integrated digital solutions to its own subscribers as well as those of managed services customers.

Services would include home surveillance, telemedicine and learning – focusing on the emerging semi-urban, semi-rural & rural markets

Helping its E2E ecosystem grow by developing franchisees into not just digital solutions providers but also marketing channels for group and other company products; ranging from FMCG to financial products

NXTDIGITAL is poised to optimize satellite services – basis it's national network of franchisees and its inherent expertise of delivering services via satellite

Can deliver broadband to lo/no broadband penetrated markets; leveraging NXT's network of over 1,600 points-of-presence and ~30,000 Feet-on-Street

Can deliver OTT caching services for OTT platforms to the edge of networks – reducing dependencies on expensive CDNs – especially in markets outside of Tier I cities.

Can extend this to providing low-cost OTT over satellite to these yet-to-be-tapped markets, ensuring retention and ARPU growth.

NXTDIGITAL can also look to expand its service base across its satellite footprint, covering SAARC countries, subject to regulations

Strong operating metrics leading to robust financial turnaround (1/2)

Exit ARPUs – Digital Content Delivery

Key Subscriber Metrics

Focused on key performance indices to set the tone for a turnaround

Strong operating metrics leading to robust financial turnaround (2/2)

Successfully managed to turnaround the business through key sustainable initiatives and the stimulus of NTO 1.0

In review…opportunities to accelerate the growth curve

Digital Services Company

3600 presence across distribution platforms - digital cable, HITS, wireline broadband to own 5.2mn+ subscribers.

Significant presence in the fastest growing demographics of semi-urban & rural India

Defined "inherent" growth strategies

Opportunities for "bundled" products and cross-selling services to existing base

Grow ARPUs through upselling and leveraging the FTA to HD lifecycle

Contracted for ~5.16mn; onboarding in progress. Managed Services Growth Driver

Market potential includes existing peers as well as regional & independent MSOs who comprise 69mn TV HHs

Emerging technology opportunities

Optimise infrastructure and LCO network to launch services like broadband, OTT and CDN over satellite.

Expansion Possibilities

Capability to expand to new markets by offering HITS services in Africa, Bangladesh and other parts of Asia, subject to regulations

Grow the E2E ecosystem by developing franchisees into marketing channels for products

Optimise the >30,000 feet-on-street and >1,600 PoPs

Annexures

Leveraging HITS to deliver Managed Services

Benefits of Managed Services to MSO

• Easy expansion by simply placing NXT COPE in desired geography

CRM

CRM

CRM

All values in INR Cr. unless stated otherwise

Particulars	FY 20	FY 19
Revenue:
Operating revenues	1,038.00	704.62
Non operating income	124.10	0.00
Total revenue	1,162.10	704.62
Expenses:
Broadcaster costs	392.99	456.55
People costs	70.91	49.34
Other operating costs	356.09	271.33
Total expenses	819.99	777.23
EBIDTA	342.11	-72.61
Depreciation	197.48	152.68
Interest	119.79	104.30
Extra-ordinary income		35.83
Profit before tax	24.84	-293.76
Taxation	-85.21	9.67
Profit after tax	110.05	-303.43

All values in INR Cr. unless stated otherwise

Particulars	FY 20	FY 19
Liabilities
Equity and Reserves	248.15	556.18
Borrowings	973.73	1203.96
Lease liabilities	113.82	-
Other liabilities	637.22	731.45
Total	1,972.92	2,491.59
Assets
Property, plant & equipment
Including CWIP	625.03	697.37
Right of use – leases	108.98	-
Other long term assets	700.58	969.22
Other assets	538.32	825.00
Total	1,972.92	2,491.59