Slide 1: D B Corp Ltd. Investor Presentation
D B Corp Ltd. Investor Presentation February 2018 VALUES – Trendsetting | Result-oriented | Analytical | Connected 1
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 Media & Entertainment Industry
Indian Media & Entertainment Industry Media Sector – Strong & Consistent Growth (INR bn) 1157 1262 1026 918 728 821 652 2010 2011 2012 2013 2014 2015 2016 • M&E industry size was Rs. 1262 bn in 2016, which grew by 9% over 2015. • Expected CAGR growth is 14% till 2021. Media Spend as % of GDP 0.97% 0
Slide 4: Print Maintains Largest Ad-pie – Language Print Witnesses Higher Growth
Print Maintains Largest Ad-pie – Language Print Witnesses Higher Growth OOH Radio 6% Online 4% 4% Print: Indian Print Language Print: English Television 47% 42% 58% 39% Radio OOH 4% 5% 2010 – Rs. 265.5 bn Online 15% Print Print: Indian 38% Language Print: English 65% 35% Television 38% 2016 – Rs. 52
Slide 5: Print & Indian Language Advertising Revenue
Print & Indian Language Advertising Revenue Indian Language Print Print Media 2016 – Indian Language Print Media is Largest component of print advertising, as a % of print ad pie at 65%; – Indian Language Print is expected to maintain a healthy CAGR of double digit for next 4 – 5 years. Source: FICC
Slide 6: Consistent High % Growth of Indian Newspapers
Consistent High % Growth of Indian Newspapers • Print is growing at an incredible 4.87% CAGR over a 10 year period from 2006 to 2016. • Absolute Hindi copies per day increased by 1.39 cr to 2.45 cr in 2016 from 1.06 cr copies in 2006. Hindi 8.76% Telgu 8.28% Kannada 6.40% Tamil 5.51% Malayalam 4.11%
Slide 7: Dainik Bhaskar Newspaper Is World's 4th Largest Circulated Newspaper
„Dainik Bhaskar‟ Newspaper Is World‟s 4th Largest Circulated Newspaper WAN IFRA‟s World Press 2015 2016 Trends Reports: 4th Rank 4th Rank (3.6 mn copies) (3.8 mn copies) 2014 11th Rank (2.5 mn copies) Other top 3 newspapers as per 2016 Reports: Copies Title Country (million) 2013 The Yomiuri Shimbun
Slide 8: Urban India's #1 Newspaper Group
Dainik Bhaskar Group is Urban India‟s #1 Newspaper Group Dainik Bhaskar The Group Times Dainik of India Jagran 12.6 Mn. Group Group Readers 11.9 Mn. 11.2 Mn. Readers Readers Dainik Bhaskar Group : Dainik Bhaskar | Divya Bhaskar | Divya Marathi | Saurashtra Samachar The Times of India Group: The Time
Slide 9: Dainik Bhaskar has the largest NCCS-AB and NCCS-A readers in Urban India
Dainik Bhaskar has the largest NCCS-AB and NCCS-A; readers in Urban India 7.08 Mn. 4.74 Mn. 6.87 Mn. 4.68 Mn. 5 Mn. 4.34 Mn. Dainik Bhaskar Dainik Jagran The Times of India NCCS AB NCCS A (Readership) Source : IRS 2017 AIR – URBAN Source: IRS 2017 AIR-URBAN | Excluding Financial Dailies 9
Slide 10: D B Corp Ltd - The Largest Print Media Company In India
D B Corp Ltd - The Largest Print Media Company In India Major Business Brands Hindi Newspaper 11 States, 46 Editions Gujarati Newspaper 2 States, 9 Editions Marathi Newspaper 1 State, 6 Editions FM Radio Network 7 States, 30 Stations Digital & Mobile 13 Portals & 2 Apps 10
Slide 11: Presence Across Fast Growing Markets
Presence Across Fast Growing Markets INDIA 10 Metros1 29 States 7 Union Territories Delhi, Mumbai, Ahmedabad Less: 6 Union Territories Less: 7 NE States Chennai Jaipur (Non Focused Markets) (Non Focused Markets) Hyderabad, Kolkata, Surat Bangalore, Pune Remaining: (Major) 1 U.T. Remaining: Major 22S
Slide 12: Focused on Largest Revenue Markets of India
Focused on Largest Revenue Markets of 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, Jha
Slide 13: Key Developments / Initiatives and Current Focus Area
Key Developments / Initiatives and Current Focus Area bad e 8 DB Corp Lid | dfteurewz a fecéi ararct ey Ggoicrat *homeonlinecom ae &.
Slide 14: Strategic Focus Area - Editorial Strategy
Strategic Focus Area - Editorial Strategy Innovative reader engagement initiatives CONTENT STRATEGIES Thought Leadership Journalism- = “No Negative Knowledge enhancement for reader Monday” High Quality Reviews & Content + opinion by Jacket on eminent Sunday Product differentiation towards growth aut
Slide 15: Circulation Strategy – Proven Track Record
Circulation Strategy – Proven Track Record 1. 15% CAGR Growth: For 5 years, from FY 2011-12 to FY 2016-17 is 15% largely driven by yield in our core legacy markets. 2. Dainik Bhaskar newspaper continues to be the Nation‟s Largest Circulated Multi-Edition Daily as per Press In India Report 2016-17 pr
Slide 16: Expansion Strategy – Digital Business
Expansion Strategy – Digital Business Indian Language Internet Users are the PRESENT and the FUTURE ● The next wave of 200 Million internet users will be Indian language users ● 60% of the Indian Language internet users are Hindi ● Indian Mobile Internet Users form 90% of the Indian internet users *
Slide 17: Transformation from CONTENT to PRODUCT organization
Transformation from CONTENT to PRODUCT organization Recommendation - Best in the industry globally, leveraging big data and AI. 24% higher than any other competitive brand in the industry Real-time Insights In-house tool to empower the editorial with content performance and traffic, based on propert
Slide 18: Focused, Strong Brands For Growing Digital Audiences
Focused, Strong Brands For Growing Digital Audiences Dainikbha Fashion1 skar.com Divyabha 01.in skar.co.in Jeevanm Dailybhas antra.in kar.com Dbcric.co Divyamar m athi.com 13 Portals Bollywoo Food.bha skar.com 2 APPS dbhaskar. com Gadgets. Moneybh bhaskar.c askar.co om m Dainik Homeonli Bhaskar ne.c
Slide 19: The Most Preferred News Destination in Mobile Website
The Most Preferred News Destination in Mobile Website Avg Daily Unique Visitors (Mn) User Frequency (Mn) 4.9 4.1 6.3 5.4 5 2.8 BHASKAR.COM TOI NDTV BHASKAR.COM TOI Oneindia Total Visits (Mn) 211 207 114 Source: Comscore News & Information – November 2017 TOI Bhaskar.com NDTV 19
Slide 20: Digital Snapshot
Digital Snapshot • Digital Revenue (Rs. mn) 567 460 425 398 303 161 57 103 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 9M FY 9M FY 2017 2018 • Unique Visitors (UV) for the month of Dec 2017 were 79.1 mn1 • Page Views (PV) for the month of Dec 2017 were 1.3 bn1 • Mobile applications: 11.8 mn app
Slide 21: Digital Way Forward
Digital Way Forward Digital is moving towards personalization Creating our product & future strategy based on Big Data analysis Focus on Speed More Engagement Zero buffering and ensuring hassle To keep the readers hooked onto free reading experience our platform through engaging content, innovative
Slide 22: Expansion Strategy – Radio Business
Expansion Strategy – Radio Business Launched in 2006, 94.3 MY FM operates from 30 stations in 7 states 94.3 MY FM continues to be no.1. in markets of Madhya Pradesh, Chhattisgarh and Rajasthan and largest network in Chandigarh, Punjab and Haryana. Consolidating presence in line with strategy t
Slide 23: Current Initiatives during Q3 FY 2018
Current Initiatives during Q3 FY 2018 “MY FM ke Rangrezz” - MY FM Comedy Adda Indore activity flagged off on 14th & Nagpur : A bone tickling Nov i.e. Children‟s Day which night with Vipul Goyal & was India‟s largest painting Sandeep Sharma competition Helped kids with hearing impairment gifting hear
Slide 24: Historical Outperformance Track Record
Historical Outperformance Track Record Total Revenue (Rs. mn) 1273 1076 997 960 942 801 555 672 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 9M 9M FY 2017 FY 2018 EBIDTA Revenue (Rs.mn) & its Margin (%) 478 393 400 398 318 220 246 124 40% 41% 37% 38% 33% 42% 25% 22% FY 2012 FY 2013 FY 2014 FY 201
Slide 25: Robust Growth in Profits
Robust Growth in Profits Strong Focus on ROCE & RONW Low Debt Exposure High Net worth & Strong Balance Sheet bad S eS DB Corp Lid | dfteurewz a fecéi ararct ey Ggoicrat *homeonlinecom ae &. 25
Slide 26: Proven Track Record of Topline & Bottom Line Growth (contd.)
Proven Track Record of Topline & Bottom Line Growth… (contd.) Advertisement Revenue (Rs. mn) 15166 15973 10016 12075 12406 12565 6979 4866 FY 2007 FY 2009 FY 2011 FY 2013 FY 2015 FY 2017 9M 9M FY 2017 FY 2018 Total Revenue (Rs. mn) 22750 20353 16137 17528 17778 12794 9324 6724 FY 2007 FY 2009 FY 201
Slide 27: Proven Track Record of Topline & Bottom Line Growth
Proven Track Record of Topline & Bottom Line Growth EBIDTA Revenue (Rs. mn) & its Margin (%) 6592 5879 5418 4173 4824 3974 1618 983 29% 33% 25% 29% 31% 27% 15% 17% FY 2007 FY 2009 FY 2011 FY 2013 FY 2015 FY 2017 9M 9M FY 2017 FY 2018 PAT (Rs. mn) & its Margin (%) 3748 3163 3106 2585 2669 2181 598 68
Slide 28: Healthy Operating Profit In Our Mature Market
Healthy Operating Profit In Our Mature Market Rs MN Q3 (FY16-17) Q3 (FY17-18) Annual (FY 15-16) Annual (FY 16-17) Particulars Matured Matured Matured Matured Print / Emerging DBCL Print / Emerging DBCL Print / Emerging DBCL Print / Emerging DBCL Radio / Business* Standalone Radio / Business* Standal
Slide 29: Strong Balance Sheet & Financial Ratios
Strong Balance Sheet & Financial Ratios Return on Capital Employed 35% 34% 32% 28% 30% 33% 27% 28% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 9M 9M FY 2017 FY 2018 Return on Net Worth 27% 25% 22% 24% 23% 21% 21% 19% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 9M 9M FY 2017 FY 2018 29
Slide 30: Financial Summary
Financial Summary Quarter Ended Half Year Ended Particulars (INR million) 15-Mar 16-Mar 17-Mar Q3 FY17 Q3 FY18 Growth % 9M FY17 9M FY18 Growth % Advertising Income 15166 14812 15973 4530 4263 (5.9%) 12406 12565 1.3% Circulation Revenue 3755 4356 4814 1243 1319 6.1% 3597 3825 6.3% Total Income 20353
Slide 31: Board Of Directors
Board Of Directors Sudhir Agarwal 27 years of experience in the publishing and newspaper business Managing Director responsible for its long-term vision, business planning and performance monitoring Pawan Agarwal 13 years of experience in the publishing business Deputy Managing Director Head
Slide 32: For more information, please visit our website www.bhaskarnet.com
For more information, please visit our website www.bhaskarnet.com VALUES – Trendsetting | Result-oriented | Analytical | Connected 32