Slide 1: DB Corp Ltd. Investor Presentation November 2013
DB Corp Ltd. Investor Presentation November 2013 cites ree | TO BE THE LARGEST AND MOST ADMIRED MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE VALUES PILLARS CREDIBILITY & INTEGRITY INNOVATIVE & ENTREPRENEURIAL RESPECT & APPRECIATION EMPOWERED TALENT INNOVATIVE PRODUCTS & PROCESSES ETHICAL GOVERNANCE
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 Dainik Bhaskar Group (DB Corp Ltd.) about its business and the industry
Slide 3: Indian M&E and print industry revenues and ad spend growth
Print Industry Revenues (Rs bn) Media Spend as % of GDP Ad Revenue Sub Revenue Source: Worldwide Media & Mktg. Forecasts, Group M, Summer 2011 M&E industry size was Rs 821 bn in 2012, which grew by 13% over 2011. Expected CAGR growth is 15% till 2017. Indian Ad spend is expected to grow at a CAG
Slide 4: Growth in literate population and newspaper reach
26% Growth Can Read Population (in ‘000) Newspaper Reach (in ‘000) (Growth From 2007 – 2012) (Growth From 2007 – 2012) 9% Growth 11% Growth 41% Growth Literate Li population l i off IIndia di hhas grown to 656259 6 62 9 (in (i ‘000) ffrom 537117 3 11 (in (i ‘000) iin last 5 years from 2007 to 2012
Slide 5: A Leading Media Company of India
A LEADING MEDIA COMPANY deinikbhasker.com diyyebhesker.cam OF INDIA
Slide 6: Total readership and daily readers in fastest growing markets
A Around d 44.2 44 2 million illi Total T t lR Readership d hi &19 &19.8 8 MN D Daily il readers d i India’s in I di ’ fastest f t t growing i markets k t 6
Slide 7: A Leader in Print Readership in highest growth markets in India
A Leader in Print Readership, operating in the highest growth markets in India Leadership in Multiple States – Emerging Tier II & III Cities • Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Haryana, Punjab, Chandigarh, Maharashtra, Himachal Pradesh, Uttrakhand, Jharkhand, Jammu & Kashmir & Delhi
Slide 8: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 4997 2013 > BEB states ations OG | KER Exitions: ‘Language BN > BIQ2§ Languages: DB Corp Ltd —— ecronese faoraerdt ——— ey deuthedercom
Slide 9: Focused on Growing Media Opportunities in India
FOCUSED ON GROWING MEDIA OPPORTUNITIES IN INDIA -REGIONAL MARKETS ied deinlkbhseker.com DB Corp Ltd femmes (eaonese ferent —— ey ‘nina
Slide 10: Growth 2008 vs 2012: Metros, Tier II, Tier III
GROWTH 2008 VS. 2012 METROS TIER II TIER III Consumer Durables Ownership (Air Conditioner) 69% 135% 131% Consumer Durables Ownership (Electric Geyser) 28% 85% 59% IT & Communication Products 69% 116% 105% Automobile (Ownership) 40% 83% 66% FMCG Product Purchases 17% 42% 30% Source: IRS Q3 ‘12 10
Slide 11: Indian Language gaining share of ad-pie
Indian Language gaining share of ad-pie English 50% English 39% Indian Language 61% Indian Language 50% 2005 : Rs 69 bn 2012 : Rs 150 bn Hindi Started getting the Premium(On Value Basis) 1994 3234 276 699 English Hindi English Hindi 2005 : 7.2x Premium 2012 : 4.6x Premium Source: FICCI KPMG Report ,
Slide 12: Ad spend by medium 2005 vs 2012
2005 2012 7% 1% 7% 2.50% 6% Television 4% Television Print 38% Print 42% Radio Radio OOH OOH 48% Online Online 46% 2005- Rs. 130.4 bn 2012- Rs. 327 bn Source: FICCI KPMG Report p , 2013 12
Slide 13: India: states and language markets of DB Corp
INDIA 28 States 6 Metros (English Play) 7 Union Territories Delhi, Mumbai, Chennai Less: 7 NE States Hyderabad, Kolkata, Less: 6 Union Territories (Non Focused Markets) Bangalore (Non Focused Markets) Remaining: Major 21States Remaining: (Major) 1 U.T.Chandigarh Hindi Bengali Oriya Marathi Gujarati
Slide 14: Diverse, Sustainable Business Model
DIVERSE, SUSTAINABLE BUSINESS MODEL e ® e e DB Corp Lid asus: fecicnese faeraenst fawtauewe BSF iutrmigcm 1A
Slide 15: Uniformly distributed EBITDA from diversified markets
UNIFORMLY DISTRIBUTED EBIDTA FROM OUR DIVERSIFIED MARKETS Our business in Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Haryana, Punjab, Chandigarh etc. equally contributes towards top-line, bottom-line & our readership, thus reducing the d d bilit on any one single dependability i l market k t
Slide 16: Maharashtra expansion: editions from Aurangabad
so far 7 editions from Aurangabad Nashik, Aurangabad, Nashik Jalgaon, Ahmednagar, Solapur,, Akola & Solapur Amravati Amravati… 16
Slide 17: Maharashtra, Aurangabad readership
Maharashtra, Aurangabad M 2011 May Average Issue AIR SEC SEC AB % of Total Readership Base Reader Base Estimates A B AB Divya Di Marathi M hi Over O All leader & Divya Marathi 342 28 58 86 25% leader in SEC AB Lokmat 273 15 39 54 20% Daily D il Sakal S k l 65 4 8 12 18% Figs in ‘000 The affluent tru
Slide 18: Consistent leaders from then till now
Average Issue Readership in ‘000s Jaipur IRS 12 Q4 Dainik Bhaskar 1040 Nearest Competitor 792 CONSISTENT Chandigarh/ Haryana IRS 12 Q4 LEADERS FROM Dainik Bhaskar 1455 Nearest Competitor 1108 THEN TILL NOW… NOW Ahmedabad IRS 12 Q4 Divya Bhaskar 1097 Nearest Competitor 848 A it Amritsar IRS 12 Q4 Dai
Slide 19: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS ¢ Robust Growth in Profits ¢ Strong Focus on ROCE & RONW ¢ Low Debt Exposure, High Net worth & Strong Balance Sheet & 3 poate DB Corp Ltd a eonase ferent —— ey ‘nina 19
Slide 20: Revenue breakdown and growth drivers
Revenue R Revenue Breakdown B kd Breakdown Q1 FY14 Q2 FY14 Other 7% Circulation Revenue 18% 75% Advt d Revenue Advt Revenue Circulation Revenue Other Revenue Growth Drivers Upward revision of ad rates at national and local level Driving growth through Retail Advertisers Improved Circulation, i
Slide 21: Advertisement Revenue and Total Revenue
Advertisement Revenue (Mn) Total Revenue (Mn) 21
Slide 22: EBITDA Growth & Margin; PAT Growth & Margin
EBITDA Growth & its Margin (INR MN) PAT Growth &its Margin (INR MN) 22
Slide 23: Matured vs emerging editions standalone results
Rs MN YTD YTD Q2 Q2 (FY 11-12) (FY 12-13) (FY 12-13) (FY 13-14) Particulars DBCL DBCL DBCL DBCL Matured Emerging Matured Emerging Matured Emerging Matured Emerging Standalone Standalone Standalone Standalone Topline 12736 1243 13979 13365 1758 15123 3135 453 3741 3834 371 4380 EBIDTA(Before 4247 (63
Slide 24: Return on Capital Employed and Return on Net Worth
Return on Capital Employed (ROCE) Return on Net Worth (RONW) 24
Slide 25: Consolidated financial summary
Year Ended Quarter ended Particulars (INR million) March-10 March-11 March-12 March-13 Sept-12 Sept-13 Growth % Advertising Income 8086 10034 11281 12075 2826 3297 16.7% Circulation Revenue 2118 2144 2422 2823 700 796 13.7% Total Income 10630 12794 14755 16137 3823 4418 15.6% Newsprint (3279) (3838)
Slide 26: Radio business
• Launched in 2006, now operates from 17 stations in 7 states, namely M.P., C.G., Punjab, Gujarat, Rajasthan, Chandigarh, Maharashtra • Our Radio Business has attained PAT in record less than 4 years time, from the time of operations of all 17 stations. • Strong Advertisement revenue of Rs. Rs 175 m
Slide 27: Digital business growth
• Digital Business has shown a impressive growth of 1950% in last 3 years . • Our Unique Visitors have grown to 10 million per month, thus registering growth of 1650% in last 3 years. • Collective page views stands at 369 million per month month. • www.dainikbhaskar.com has become largest Hindi lang
Slide 28: Management and board
Chairman - 44 years of experience Ramesh Chandra Agarwal Served as Chairman of FICCI of the MP region Managing Director of DBCL Sudhir Agarwal 27 years of experience in the publishing and newspaper business 19 years of experience. Won the E&Y ‘Young Entrepreneur of the Year 2006 ’ Award Gi
Slide 29: cftas urea | TO BE THE LARGEST AND MOST ADMIRED MEDIA BRAND ENABLING SOCIO-ECONOMIC
cftas urea | TO BE THE LARGEST AND MOST ADMIRED MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE VALUES CREDIBILITY & INTEGRITY INNOVATIVE & ENTREPRENEURIAL RESPECT & APPRECIATION PILLARS EMPOWERED TALENT INNOVATIVE PRODUCTS & PROCESSES ETHICAL GOVERNANCE