CONFIDENTIAL

November 2011

China Digital TV Holding Co., LtdChina’s Digital TV Industry Enabler

Listed Exchange New York Stock Exchange

Stock Symbol STV

Stock Price $3.61 (Nov 24, 2011)

Market Cap. US $213M

Headquarters Beijing, China

Employees 585

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China Digital TV At A GlanceLeading Provider of CA Systems in China’s Digital TV Market

Leading Market Position

Major Products / Services

CA Systems

Set-top Box Design

Digital TV Application

SoftwareHead-end Software

Terminal-end Software

Smart Cards

Company Information

56.3% market share in year 2010

60.8 million smart cards shipped as of Sep 30, 2011

300+ carrier customers in China

Agenda

I. Investment Highlights– China’s rapidly expanding digital TV market

– STV: China’s No. 1 conditional access (CA) system provider 

– Company history

– Highly experienced executives and directors

II. Recent updates– Financial summary

– Cable industry transformation in the long run

– A “Gatekeeper” during convergence period

– Multiple long‐term growth opportunities

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Fast Growing Digital Cable Market in ChinaQuick Facts of China’s Cable Industry

China possesses the world’s largest cable TV market in terms of subscribers 

As of September 2011, nearly 100 million households had gone digital 

187 million cable TV households, increasing by approximately  10 million per year

Government targets completion of TV digitalization by 2015

Average Subscription Fee: Basic cable service $2.2/Mo. Digital Cable service $3.7/Mo.

Highly fragmented cable industry ‐ over 1,900 legitimate operators

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Fast Growing Digital Cable Market in China‘Full-scale Migration’ to Digital TV in China is Underway

Source: SARFT, Company estimates

Around 50% digital penetration rate in 2010 Nationwide migration completed

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STV is China’s No. 1 CA System Provider Strong Smart Card Shipments and Market Share

Cumulative Smart Card Volume

2010 Market Share

Based on Luoda data

Market Share Comparison (2007--2010)

Unit: MM

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STV is China’s No. 1 CA System Provider A Broad and Diversified Customer Network

315 Local Cable TV Operators Across 27 ProvincesNumber of Domestic Customers

Physical location of our customers

Customer Profile

customer base as of March 31, 2011

Feb. 2002CCTV adopted our 

CA system

1998 2000 2002 2004 2006 2008 2010

1999 2001 2003 2005 2007 2009 2011

Over a Decade of Industry Leadership

Next GenerationProducts and VAS

MarketLeadershipBuilding Business

Aug. 200710 Millionth Smart Card 

shipped

Aug. 2009Partnered with Microsoft to market PC‐TV tuner solutions

Jul. 1998Company founded

Jun. 2006Signed contract with 

100th network operator

Aug. 2011Partnered with Intel to 

develop HD STB

Jun. 20051 Millionth Smart Card shipped

Oct. 2007Listed on the 

NYSE

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Feb. 201150 Millionth Smart 

Card shipped

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Highly Experienced Executives & Directors

Note: (1) The number of years with Company refers to the time spent with the business of the Company

In charge of financial control and management .

12 years with Company

MBA from Renmin University of China

Zhenwen LiangChief Financial Officer

In charge of daily operations

12 years with Company

Tsinghua University

Dong LiPresident &

Chief Marketing Officer

11 years with Company

Experience with Microsoft China Research Institute

Ph.D, Tsinghua University

Jian HanChief Technology Officer

Management Team Independent Directors

Founding Partner of Ivy Capital

Former Senior Executive in IT and investment banking industry.

Ph. D, Tsinghua University

Chaoyang Xia

Director of Advanced Info Service, a Thailand Company

Independent director of Pacific Textiles Holdings Ltd., a Hong Kong listed company

Former CEO of Hong Kong CSL Ltd.Former CEO of SmarTone Telecommunications

Holdings Ltd., a Hong Kong listed company

Ching Wah Ng

Global Vice President, Asia Pacific President of Synopsys, Inc.

20 years experience in IT industry

M.S from Tsinghua University and EMBA from CEIBS

Jianyue Pan

Editor-in-chief of Global Business & Finance magazine

Former Chairman of a Nasdaq-listed Chinese company

Master from Columbia University and Ph. D from Renmin University of China

Songzuo Xiang

Co-founder

12 years with Company

Tsinghua University

Jianhua ZhuChairman & CEO

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Agenda

I. Investment Highlights–China’s rapidly expanding digital TV market

– STV: China’s No. 1 conditional access (CA) system provider 

– Company history

– Highly experienced management team

II. Recent updates– Financial summary

– Cable industry transformation in long run

– A “Gatekeeper” during convergence period

– Multiple long‐term growth opportunities

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Financials Summary

US$ million unless otherwise indicated

Q3 2011 Q2 2011 QoQ Q3 2010 YoY

Smart card volume (MM) 4.66 4.64 0.5% 3.95 18.1%

Net revenues 25.9 24.7 4.7% 21.1 22.5%

Gross profit 20.8 20.1 3.6% 16.5 26.6%

Operating Expenses (9.6) (7.6) 26.0% (6.2) 55.6%

Operating Income 11.2 12.5 (10.0%) 10.3 9.2%

Income tax expenses (2.5) (2.6) (3.8%) (1.5) 66.7%

Net income 10.8 11.3 (4.8%) 10.1 7.2%

Diluted EPS (USD) 0.18 0.19 - 0.17 -

Q3 2011 Q2 2011 Q3 2010

Gross margin 80.50% 81.40% 78.00%

Operating margin 43.44% 50.60% 48.80%

Net margin 41.70% 45.90% 47.50%

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Financial Summary (cont’d)

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US$ million

Q3 2011 Q2 2011 Q3 2010

Cash 187.0 159.2 209.4

Bank Deposits 44.0 43.5 -

Short-term Investments - 19.5 43

Total Cash Position 231.0 222.2 252.4

Days Receivable 114 98 66

Days Inventories 75 78 64

Days Payable 36 43 21

Operating Cash Flow 5.8 2.5 12.8

Cable Industry Transformation in the Long Run Significant Potential in ARPU Upside for Cable Operators

ARPU(US$)

Digitalization

High-definition TVRich value-added content, incl. VOD,TV gaming

Interactive multi-media platform3D TV

Basic CA Advanced CA / DRM/ Advanced STB / Middleware /

Tracing Technology / VAS / Shared Content Platform

1.5

3.0

10.0

~30.0

Current Phase Next Phase Long-TermPre-Digital Phase

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Cable Industry Transformation In the Long Run3-Network Convergence and Cable Network Consolidation

Three network convergence policyIn early 2010, China’s State Council announced a decision to promote the advancement of three network convergence (telecom, broadcast TV and Internet)

Multiple Service Operation time is comingUnder the plan, qualified cable operators will be allowed to provide telecom and internet services, and telecom operators will be allowed to broadcast TV programs. 

“Golden period” for cable industryTwo trial periods are planned: 2010‐2012 for launch of convergent services at trial sites 2013‐2015 for launch commercial convergent services nationwide

Cable network consolidationSARFT issued guidelines on local cable network consolidation in 2010, setting the goal of “one province, one network”. 

vs.

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A “Gatekeeper” During Convergence PeriodProvide a full suite of content protection technologies

Satellite

Cable

Terrestrial

Mobile

IPTV

Set‐top box/DVD

Netbook

TV set

Mobile phone

Home gateway

Secure premium content delivered to multiple devices via multiple networks

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Cloud Video Delivery Service

• Consumers access services from “cloud end” by using “thin” terminal devices;

• Enable operators to offer new applications efficiently and cost‐effectively;

• Solutions supporting advanced gaming/video/education applications are available for trial

Smart HD  STB Box Design

• Advanced and reliable high‐definition home entertainment products 

• Intel Capital made an investment in JoySee, a subsidiary of STV to develop smart HD STB;

• Product debut expected in early 2012

Integrated Chip Design for STB Box Makers 

• All‐in‐one solution cuts production costs by 20% for STB makers;

• 30,000 STB boxes with the integrated chips have been delivered to end users;

• Plan to work with large cable operators to market the chips after product verification

mysupermovie.com

• Deliver HD movies/TV shows via hard disks;

• Built‐in content protection feature prevents illegal use

• Cooperate with certain HDTV and 3D TV makers to market the service nationwide 

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Multiple Long-term Growth OpportunitiesExamples of Recent Initiatives for TV Screens

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