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C brinen ppt_2


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C brinen ppt_2

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  2. 2. This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This includes, but not limited to: statements about the future growth and financial and operating results of China Cablecom Holdings; the company’s plans, objectives, expectations and intentions with respect to future operation; products and services; and other statements identified by words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “will,” “should,” “may,” or words of similar meaning. Such forward-looking statements are based upon the current beliefs and expectations of China Cablecom Holdings’ management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond the control of China Cablecom Holdings. Actual results may differ materially from the results anticipated in these forward-looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: general global financial crisis, general business and economic conditions in the People’s Republic of China, the failure of China Cablecom Holdings to consummate the acquisition of the Hubei networks, the failure to achieve anticipated cost savings and increases in average revenue per user (“ARPU”), and regulatory actions taken by the State Administration for Radio, Film and Television or any other governmental authority in the PRC. Additional factors that could cause China Cablecom Holdings’ results to differ materially from those described in the forward-looking statements can be found in China Cablecom Holdings’ (“Registration Statement”) on Form S-1, which was filed with the Securities and Exchange Commission (“SEC”) in April 2008. Investors are able to obtain free copies of the “Registration Statement” and other documents filed with the SEC by China Cablecom Holdings through the website maintained by the SEC at . The information set forth herein speaks only as of the date hereof, and China Cablecom Holdings disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this presentation. 2
  3. 3. We are one of the top cable TV operators in China– the largest cable TV market in the world 3
  4. 4. The Chinese CATV market is highly fragmented * DCATV China Cablecom: 1.4m HH CITIC: 8.4m HH Gehua: 3.65m HH Shaanxi BCTV: 3.92m HH Hunan BCTV: 2.4m HH WASU: 1.7m HH Shenzhen Topway: 1.03m HH* 4 OCN: 4.7m HH Chongqing CTV: 4.3m HH Qingdao CTV: 2m HH Tianjing BCTV: 2.15m HH Guangzhou CTV: 2.15m HH
  5. 5. <ul><li>First foreign partner in China’s cable TV operations </li></ul><ul><ul><li>Critical partnerships with provincial and municipal cable asset owners, SARFT </li></ul></ul><ul><li>Expanded subscriber base by selectively acquiring and consolidating Chinese cable operators </li></ul><ul><ul><li>Government-mandated digitalization efforts drive ARPU growth and profitability </li></ul></ul><ul><ul><li>Highly focused and experienced management team </li></ul></ul>5 EQUITY SNAPSHOT NASDAQ : CABL, CABLW, CABLU CURRENT PRICE: $0.80 SHARES OUTSTANDING: 9.6 MM MARKET CAP: $9.1 MM FISCAL YEAR END: DECEMBER 31
  6. 6. <ul><li>Large addressable market: 378 million </li></ul><ul><li>TV households and 152 million cable </li></ul><ul><li>TV households in 2007 </li></ul>EARLY STAGE IN CABLE TV MARKET <ul><li>Highly fragmented market with over 300 cable TV operators </li></ul><ul><li>Provincially and regionally operated by SARFT </li></ul><ul><li>Huge opportunity for consolidation </li></ul><ul><li>Transforming television from analog </li></ul><ul><li>to digital platform </li></ul><ul><li>Basic ARPU expected to increase 133% from $1.50 to $3.50/month </li></ul>6
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  8. 8. 8 <ul><li>SARFT desires to use private capital to develop digitization infrastructure </li></ul><ul><li>Mandatory switch-off of all analog TV signals between 2012 and 2015 </li></ul><ul><li>Transition from a state-owned enterprise (SOE) non-profit motive culture, to a public company culture with significant opportunity to increase profits and provide economic upside </li></ul>Source: CCID Consulting 2008; SARFT 2008.
  11. 11. <ul><li>First mover advantage; enriching infrastructure of television industry </li></ul><ul><li>Opportunity to consolidate through acquiring extremely attractive cable assets at discount </li></ul><ul><li>Monetize value through growth of China’s television market </li></ul><ul><li>Capture economy of scale in quality of services and content </li></ul><ul><li>Enabling delivery of value-added entertainment </li></ul>11
  12. 12. Today China Cablecom has over 1.5 million subscribers through 28 cable properties in Binzhou and Hubei 12
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  15. 15. * Based on industry model of China cable comparables that suggest a market value of more than $400 per subscriber 15
  16. 16. <ul><li>SHANDONG PROVINCE DEMOGRAPHICS </li></ul><ul><li>Population: 92 mil </li></ul><ul><li>2nd Largest regional economy (GDP); 2005: USD 233 bil,13% CAGR since </li></ul><ul><li>2000, GDP per capita USD 2,600 </li></ul><ul><li>Annual disposable income per capita is USD 4,820 </li></ul><ul><li>One of the top 6 TV markets in China </li></ul><ul><li>10.2 mil CATV HH </li></ul><ul><li>One of the top 10 TV markets in China </li></ul>16
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  18. 18. <ul><li>HUBEI PROVINCE DEMOGRAPHICS </li></ul><ul><li>Population: 60 mil </li></ul><ul><li>GDP: USD 132 bil; 22% growth </li></ul><ul><li>2007 vs. 2006 </li></ul><ul><li>Annual disposable income per capita </li></ul><ul><li>is USD 1,410 </li></ul><ul><li>6.5 mil CATV HH </li></ul><ul><li>CATV penetration is low at 35% </li></ul><ul><li>One of the top 10 TV markets in China </li></ul>18
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  21. 21. Management has a demonstrated success in identifying, acquiring and integrating cable systems 21
  22. 22. <ul><li>Only pure-play, US-listed vehicle for investors to participate in cable consolidation in China </li></ul><ul><li>ARPU expansion supported by state-mandated initiative for adoption of digital cable </li></ul><ul><li>Highly profitable cable operations </li></ul><ul><li>High barriers to entry; municipal cable operators are the local monopoly </li></ul><ul><li>Economies of scale; transforming Chinese cable content and programming </li></ul><ul><li>Proven cable industry visionary and team </li></ul>22