Slide 1: DB Corp Ltd. Investor Presentation May 2014
DB Corp Ltd. Investor Presentation May 2014 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: Print Industry Revenues and Media Spend as % of GDP
Print Industry Revenues (Rs bn) Media Spend as % of GDP 243 224 209 51 193 46 175 42 36 50 30 45 41 37 31 62 57 59 49 53 65 67 69 74 81 2009 2010 2011 2012 2013 Sub Rev Eng. Ad Rev Hin. Ad. Rev Ver. Ad. Rev M&E industry size was Rs 918 bn in 2013, which grew by 11.8% over 2012. Expected CAGR growt
Slide 4: Can Read 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 OF INDIA
Slide 6: 44.2 million total readership and 19.8 MN daily readers
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 6
Slide 7: A Leader in Print Readership, operating in the 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 • M Madhya dh Pradesh, Chhattisgarh, Rajasthan, Gujar at, Haryana, Punjab, Chandigarh, Mahar ashtra, Himachal Pradesh, Uttarakhand, Jharkhand, Bihar, Jammu & K
Slide 8: Editions and Readership by State
State 0101 14 State Hindi Editions 05 37 Hindi Editions Gujarati Edition 00 07 Gujarati Editions Marathi Edition 00 07 Marathi Edition Language 04 04 Language Readership (MN) 32 3.2 19.8 19 8 Readership (MN) 8 8
Slide 9: Focused on Growing Media Opportunities in India - Regional Markets
FOCUSED ON GROWING MEDIA OPPORTUNITIES IN INDIA -REGIONAL MARKETS Dp e DB Corp Ltd | tite urwe fécaien2s2
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 10
Slide 11: Ad-pie by Medium and Indian Language Share
2005 2013 7% 1% 8% 2.50% 6% Television 4% Print 37% 42% Radio OOH 48% Online 45% 2005- Rs. 130.4 bn 2013- Rs. 363 bn Indian Language gaining share of ad-pie English 50% English 38% Indian Language 62% Indian Language 50% 2005 : Rs 69 bn 2012 : Rs R 163 bn b Source: FICCI KPMG Report , IRS , TAM Adex
Slide 12: India States, Metros and Language Markets
INDIA 29 States 7 Metros (English Play) 7 Union Territories Delhi, Mumbai, Chennai Less: 7 NE States Hyderabad, Kolkata, Less: 6 Union Territories (Non Focused Markets) Bangalore, Pune (Non Focused Markets) Remaining: Major 22States Remaining: (Major) 1 U.T.Chandigarh Hindi Bengali Oriya Marathi Guj
Slide 13: Diverse, Sustainable Business Model
DIVERSE, SUSTAINABLE BUSINESS MODEL D> | ae DB Corp Ltd | tite urwe
Slide 14: Uniformly Distributed EBITDA from Our 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 15: Maharashtra Editions
so far 7 editions from Aurangabad Nashik, Aurangabad, Nashik Jalgaon, Ahmednagar, Solapur,, Akola & Solapur Amravati Amravati… 15 15
Slide 16: Maharashtra, Aurangabad: Divya Marathi readership
Maharashtra, Aurangabad M 2011 May Average Issue AIR SEC SEC AB % of Total Readership Base Reader Base Estimates A B AB Di Divya M Marathi hi is i a Formidable Player Divya Marathi 176 21 49 70 40% Overall & Lokmat 270 21 52 73 27% in SEC AB Daily D il Sakal S k l 130 3 25 28 22% Figs in ‘000 The af
Slide 17: 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 18: Sustained & Relentless Focus on Non-Print Media Strategy
SUSTAINED & RELENTLESS FOCUS ON NON- PRINT MEDIA STRATEGY.......... DB Corp Ltd
Slide 19: Digital business: online presence and pageviews
• Our online presence is in Hindi, Gujarati and Marathi, which account for 75% of India India’s s regional language audience - as well as in English English. • Digital Business has shown a impressive growth of 44% YOY in g Pageviews, for FY14. • Noteworthy progress in growth of UV & PV, our Unique V
Slide 20: Digital revenue growth and mobile strategy
• Our Revenue growth is impressive 95% in Q4 FY14 YOY and we have been maintaining good growth momentum of 51% YOY in FY14 in our Digital revenue. p • Focus on Market Expansion: Launching g comprehensive p destination for larger content need like Bollywood, business, women • DBCL launched three new
Slide 21: Radio business: 17 stations in 7 states
• Launched in 2006, now operates from 17 stations in 7 states, namely M.P., C.G., Punjab, Gujarat, Rajasthan, Chandigarh, Maharashtra • Leading radio station in majority of 17 markets. • Our Radio Business has attained PAT in record less than 4 years time, from the time of operations of all 17 stati
Slide 22: 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 D> & o DB Corp Ltd tite urwe fécaien2s2
Slide 23: Revenue Breakdown and Growth Drivers
Revenue R Revenue B kd Q1FY14 Breakdown Breakdown FY14 Other 8% Circulation Revenue 17% 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, in Ex
Slide 24: Robust Advertisement & Revenue Growth
ROBUST ADVERTISEMENT & REVENUE GROWTH Advertisement Revenue (Mn) FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 13 Q4 FY 14 Q4 Total Revenue (Mn) FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 13 Q4 FY 14 Q4 24 24
Slide 25: EBITDA and PAT Growth and Margin
EBITDA Growth & its Margin (INR MN) FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 13 Q4 FY 14 Q4 PAT Growth &its Margin (INR MN) FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 13 Q4 FY 14 Q4 25 25
Slide 26: Matured vs Emerging Editions Results
Rs MN Q4 Q4 FY 12-13 FY 13-14 (FY 12-13) (FY 13-14) Particulars DBCL DBCL DBCL DBCL Matured Emerging Matured Emerging Matured Emerging Matured Emerging Standalone Standalone Standalone Standalone Topline 3520 377 4082 3914 455 4712 13591 1773 16036 16220 1653 18801 EBIDTA(Before 1085 (58) 1097 1166
Slide 27: Return on Capital Employed and Return on Net Worth
Return on Capital Employed (ROCE) FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 Return on Net Worth (RONW) FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 27 27
Slide 28: Summary Financials
Year Ended Quarter ended Particulars (INR million) March-11 March-12 March-13 March-14 Q4 FY13 Q4 FY14 Growth % Advertising Income 10030 11281 12075 14178 2975 3400 14.3% Circulation Revenue 2144 2422 2823 3235 733 839 14.4% Total Income 12794 14755 16137 18836 4073 4622 13.5% Newsprint (3838) (5070
Slide 29: 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 30: 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