Slide 1: DB Corp. Investor Presentation April 2011
DB Corp. Investor Presentation April 2011 * « ® -~ hy Dainik Bhaskar Divya Bhaskar dint Rater D7 2 ia. Son
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS ¢ Robust Growth in Profits e Strong Focus on ROCE «Low Debt Exposure & . if High Networth * * @ s Dainik Bhaskar Divya Bhaskar f@ient faskaaesz DNA 2 fd. aba
Slide 3: Revenue Growth; Growth in Advertising Revenue
Revenue Growth (INR MN) Growth in Advertising Revenue (INR MN) 3
Slide 4: EBITDA Growth; PAT Growth
EBITDA Growth (INR MN) PAT Growth (Net Margins in INR MN) 4
Slide 5: Revenue Growth Drivers
Revenue Breakdown Q3 FY 2011 Revenue Growth Drivers Other 3.8% Circulation Upward revision of ad rates at national 15.5% and local level High focus on Retail Advertisers driving growth Over all Economic Conditions are positive, resulting in improved advertisement market sentiments Advertisin
Slide 6: ROCE, RONW, Debt to Equity, Debt to EBITDA
Return on Capital Employed (ROCE) Return on Net Worth (RONW) Debt to Equity Debt to EBIDTA 6
Slide 7: Gross Debt and Net Debt
Gross Debt (INR MN) Net Debt (INR MN) 7
Slide 8: Expansion Journey Continues - Successful Jharkhand Launch
D B Corp Ltd. Expansion Journey Continues — Successful Jharkhand Launch ak. 8 * & ° ® DA % Dainik Bhaskar Divya Bhaskar fa@ciaerdt fasetawese |. !: @ aba DB Corp Ltd
Slide 9: Dainik Bhaskar Group entered its 12th state, Jharkhand
On 22nd August, 2010 Dainik Bhaskar Group entered its 12th state; Jharkhand with Ranchi edition Ranchi in Jharkhand was selected for the launch of first edition due to its economic and market value 9
Slide 10: Competition was fierce
Readership p in ‘000 IRS ’10 Q Q3 Hindustan 192 Prabhat Khabar 223 Dainik i ik Jagran J 75 AIR figures in ‘000 Competition was fierce Circulation figs JJ ’10 ABC Ranchi city Hindustan 43512 Prabhat Khabar 67033 Dainik Jagran 18711 IRS = Indian Readership p Survey y ABC= Audit Bureau of Circulation 1
Slide 11: Ranchi Jharkhand readership estimates
Ranchi Jharkhand , 22 August A t 2010 AIR SEC Average Issue SEC AB % of Total Dainik Bhaskar Readership Estimates Base Reader Base A B AB leader in SEC AB Prabhat Khabar 303 60 58 118 39% Dainik Bhaskar 270 66 62 128 47% Hindustan 168 45 36 81 47% Dainik Jagran 92 14 17 31 34% Figs in ‘000 The afflu
Slide 12: Consistent Leaders from then till now
Average Issue Readership in ‘000s Jaipur IRS 10 Q4 Dainik Bhaskar 1023 Nearest Competitor 703 Consistent Chandigarh/ Haryana IRS 10 Q4 Leaders from then Dainik Bhaskar 1571 till now… Nearest Competitor 1069 Ahmedabad IRS 10 Q4 Divya Bhaskar 1058 Nearest Competitor 870 Winning is our Amritsar IRS 10
Slide 13: Focused on Growing Media Opportunities in India - Regional Markets
FOCUSED ON GROWING MEDIA OPPORTUNITIES IN INDIA -REGIONAL MARKETS 13 * & ® me ° % Dainik Bhaskar Divya Bhaskar f@iaedt frau: 97 @ Sa DB Corp Ltd
Slide 14: India's urban century
• The 21st century is set to become India’s ‘urban century’ • More people will live in cities and towns than in the countryside for the first time in its history • In 1991, India had 23 cities with a million or more people. A decade later, it had 35. Currently estimated close to 60, this number is e
Slide 15: Per capita income and regional language ad share
Source: IRS Q3 ‘10 The Per Capita Income is growing faster in Tier II & III cities. ‘Regional Language Newspaper to play a vital role’ – Group M Report Indian Language gaining share of ad-pie Premium of English declining (On Value Basis) 2,897 Indian Language English 40% 40% 1,355 Indian 603 English
Slide 16: Consumption growth in smaller cities
9BMW dealer in Jaipur sold 30 cars in 3 months 9115 Mercedes booked in a day in Aurangabad 9Punjab - 1400 Mercedes cars, 450 in Ludhiana 9C i b t 9Coimbatore – Audi, A di PPorsche h sold ld 35 cars iin 2009 9Surat - 11 Mercedes (27 l - 3 c) sold in a month 950% of high end TVs are sold outside metro
Slide 17: A Leader in Print Readership in highest growth markets
A Leader in Print Readership, operating in the highest growth markets in India M lti l St Multiple States t • Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Haryana, Punjab, Chandigarh, Maharashtra, Himachal Pradesh, Jh kh d JJammu & K Jharkhand, Kashmir h i &DDelhi lhi • Launching Maharashtra &
Slide 18: India states and languages: DB Corp presence and target expansion
INDIA 28 States 6 METROS (ENG. 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 Sou
Slide 19: Expansion Journey Continues - Marathi Newspaper in Maharashtra
D B Corp Ltd. Expansion Journey Continues — Announces Launch of Marathi Lanquaqge Newspaper in Maharashtra 19 * & ° ® DA 5 ¢ % Dainik Bhaskar Divya Bhaskar fa@ciaerdt fasetawese |. !: @ aba DB Corp Ltd
Slide 20: Maharashtra
Maharashtra
Slide 21: State of Maharashtra
State Maharashtra Third largest state of India in terms of its area and second largest in terms of Area (sq.km) ( ) 30,800 population Population 106.9 mn Richest state in India contributing to 15% of industrial output and 13% of GDP of India Literacy 77% Maharashtra is India’s leading industri
Slide 22: Maharashtra Marathi readership penetration gap
Maharashtra Base Population 106.9 mn Literacy 77% CRM* 63.5 mn AMD** 18.4 mn Penetration Gap 71% *CRM: Can read Marathi **AMD: Any Marathi Daily Source: IRS 2010 Q3 22
Slide 23: The Making of Dainik Divya Marathi, Aurangabad
The Making of ..... Dainik Divya Marathi Aurangabad 9 23 * * ® »~ % CC Dainik Bhaskar Divya Bhaskar Rdiaad fare NF 2 a te DB Corp Ltd
Slide 24: The idea of entering Maharashtra
………….2010 The idea of entering MAHARASHTRA was conceived A preliminary analysis of data and market Understanding the people and their language Identification of the core team Organizing infrastructure 24
Slide 25: Aurangabad city statistics
St State t M h Maharashtra ht City Aurangabad Area (sq.km) 180 Total ota HH 0.15 0. 5 mn Population 1.15mn Literacy 74% 25
Slide 26: Pre Launch Activities and Strategy
Pre Launch Activities And Strategy 26 * & @ om @ o od ® Dainik Bhaskar Divya Bhaskar (ive fname 7 @ Sa DB Corp Ltd
Slide 27: A Teaser Campaign
A Teaser Campaign p g Using Hoardings, Banners, SMS and Newspaper Inserts 27
Slide 28: Phase 1, Phase 2, Phase 3 Hoardings
Hoardinas Phase | Phase 2 28 ¢ e ® + ‘ ( 9 Dainik Bhaskar Divya Bhaskar fan faetaaewe 7 @ ob as DB Corp Ltd
Slide 29: Hoardings - Phase 1
Hoardings — Phase 4 ae blips Needle faci arerdt a NAM mds abet ® 29 DB Corp Lid
Slide 30: How to make Dainik Divya Marathi a household name
How to make Dainik Divya Marathi, Marathi, a household name in a 1.1 mn + population city ? How to empathize with people of Maharashtra? How H t b to bring i up the th llatent t t need d ffor a good d newspaper? newspaper? How to create positive awareness for a new brand “Dainik Divya Marath
Slide 31: Household survey in Aurangabad
Decided to meet every Marathi reading households of Aurangabad to understand their latent needs and expectation from Newspaper To survey 0.15 mn household in Aurangabad (To arrive at above figures, a detailed analysis was done for the households with gas connections (0.17mn), electricity connect
Slide 32: Aurangabad City Team
Aurangabad City Team 3 Divisions 4 Divisional Managers 9 Zones 9 Zonal Managers 102 Locations 23 Team Leaders 215 Surveyors y 32
Slide 33: Survey recruitment, training and follow-up
Recruited Padamshri Mr. Kumar Ketker, Ketker, the most renowned Marathi Editor since last 40 years. Intensive training of surveyors for 10 days by experts on body language and presentability A standardised contact method for the appearance and behavior of the surveyors 25 Computers deployed
Slide 34: Aurangabad Survey - Phase I
Aurangabad – Survey – Phase I Start Date – End Date – Phase I 13 Feb, Feb 2011 – 13 March, March 2011 Survey Period 29 Days Total HH & Commercial Units 1,27,500 1 27 500 HH (approx.) (approx ) Surveyed 23,100 Commercial Units (approx.) Primary Respondent Chief Wage Earner of the Family 34
Slide 35: The Survey Verdict
e © Dainik Bhaskar Divya Bhaskar The Survey Verdict
Slide 36: Second round of survey and booking offer
• The Second round of survey begins from 19th March, 2011 • The survey will target 1,27,500 Households and 23,100 commercial establishments. • The survey will be used for booking the copies at an offer price of Rs. 739 per year for a period of 1 year. 36
Slide 37: Management and Board
Chairman - 42 years of experience Ramesh Chandra Agarwal Served as Chairman of FICCI of the MP region Managing Director of DBCL Sudhir Agarwal 25 years of experience in the publishing and newspaper business 17 years of experience. Won the E&Y ‘Young Entrepreneur of the Year 2006 ’ Award Gi
Slide 38: Thank You
THANK YOU ® 38 ° @ bind Basi Sips toacion Raia fekmee NN 2 o. Aba DB Corp Ltd