EFTA01457529

27 May 2016 Broadcasting / Movie & Entertainment Dish TV Valuation and risks We have factored in net subscriber additions in FY16/FY17 of 1.4/1.4mn. We now factor in EP/0/10% content-cost increases in FY16/FY17. Our estimates are conservative compared to management guidance of mid-single-digit growth for content cost for FY16. We set our target price at an exit EV/EBITDA of I1x September 2016E. ME valuation The key assumptions of our three-stage FCFF (free cash flow to firm) methodology are: • Risk-free rate of 7%, market risk premium of 7.1% (we apply a standard estimated risk-free rate and market-risk premium to all the Indian companies we cover), and beta of 1 (Bloomberg Finance LP), implying a cost of equity of 14.1%; • 12% cost of debt and stable state tax rate of 33%, implying a WACC of 13.1%; and Growth in the stable phase of 4% (which is the long-term growth rate for the number of households in India). =04 FY15 FY16 FY17 F418 F419 Ff20 FY21 FY22 FY22 Pa? 443 FY24 FY25 eir 289 1.156 3231 4201 5,461 7,090 0 0 323 MO 1092 14/0 r3 rSS 228 1,156 2,938 3,351 ♦369 5,679 409Esclaton 5,973 6)C Awe 5,544 4,312 4,477 Ls Cain 739 s. 59:6 4429 3,100 480 kr (91 as 3.792 1,711 VC/ 4,576 6,101 7,820 9697 11637 13712 15664 17572 55S18 21993 24632 Growth .55% 89% 41% 33% 28% 24% 20% 18% 14% 12% 12% 12% 12% Torsi SW 25080 Carcourt rata I. 0.83 0.7$ 0.69 CuS1 034 0.49 0.42 0.37 0.33 O. % 023 Crawourtoci aka 1711 2970 3575 CB 4773 5231 5549 57% 5930D 5731 m o,, 505 69294 EV 125972 Coda ISC a4ustw1 tor to RS free at Moot rol crews ND Cos1c1 Soh NM 0th Maria O/0 WACC Tr:enrol Tooth 0.0% 7.0% 7.1% 1.0 141% 110:0 EV Nate,! VS of &pity 125.972 11.083 114,977 pkrithon 108 58818 111% Sys as% 0.4 ass Page 8 Deutsche Bank AG/Hong Kong CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0117105 CONFIDENTIAL SDNY_GM_00263289 EFTA01457529