Db Corp. Ltd. · NSE:DBCORP
Db — IIFL Investor Conference 2011
29 slides from Db's conference presentation, February 2011
Slide 1: DB Corp. Investor Presentation February 2011
DB Corp. Investor Presentation February 2011 oS o @ “ ‘ Dainik Bhaskar Divya Bhaskar fasetaamesz |= 7 @ ‘om
Slide 2: About DB Corp Ltd
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Slide 3: A Leading Media Company of India
A LEADING MEDIA COMPANY OF INDIA Third Largest Market Cap in Entertainment & Media Sector S 3 e 6 & nh ¢ ‘ a Dainik Bhaskar Divya Bhaskar fasetaure@e -!:' re) Si. to DB Corp Ltd
Slide 4: Around 17.5 MN readers in India's fastest growing markets
Around 17.5 MN readers in India’s fastest growing markets 4
Slide 5: 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 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 6: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 995 2011 oS o ® vs ‘ Dainik Bhaskar DivyaBhaskar fasmtaur@z Dial 2 Si. 9 6 Sat DB Corp Ltd
Slide 7: Leading in Each Market
LEADING IN EACH MARKET • Madhya Pradesh (MP) – Dominating the market with a market share of more than 3 times over nearest competitor. • Chattisgarh – 10% lead over nearest competitor. • Rajasthan – Maintaining, Sustaining and Increasing lead to 35% over nearest competitor in Jaipur . Besides, we ar
Slide 8: Consistent Track Record of Profitability
CONSISTENT TRACK RECORD OF PROFITABILITY 10,630 FY07 FYO8 FYO9 FY010 Q3 FY10 Q3 FY11 m Revenues (INR MN) fi PAT(INR MN) mm Revenues (INR MN) m PAT(INR MN) 8 oS eo @ *! ‘ S Dainik Bhaskar DivyaBhaskar fasmtaur@z DNA 2 i. oe DB Corp Lid
Slide 9: DBCL has demonstrated success in every market it has entered
Identify Successful Performance Profitable markets High growth markets with low print DB Corp’s proven market entry strategy has redefined category norms penetration and broke barriers across languages & geography, time and again. Ability to justify Revenue Jaipur – Dec 1996 - No.1 from the da
Slide 10: The Launch of Divya Bhaskar, Ahmedabad
THE LAUNCH OF DIVYA BHASKAR, AHMEDABAD -A Case Study at IIM, Ahmedabad • Pre-Launch door-to-door Contact Programme of 1200 Thousand Households was conducted to understand current needs and desires of Readers by a team of 1050 surveyors in 45 days • Potential readers were asked to design their dream
Slide 11: Focused on Growing Media Opportunities in India - Regional Markets
FOCUSED ON GROWING MEDIA OPPORTUNITIES IN INDIA -REGIONAL MARKETS
Slide 12: India: DB Corp markets 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 13: The 21st century is set to become 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 14: Regional Markets
REGIONAL MARKETS • Tier II & III cities are catalysts of growth in India India, Regional Newspapers dominate the market • SEC A & B Population is growing faster in Tier II & III Cities *Tier I : Population > 4 Mn Tier II : 1 Mn < Population <4 Mn Tier III : Population < 1 Mn Source: IRS Q3 2010 14
Slide 15: Per capita income growing faster in Tier II & III cities
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) 2003 : R Rs 42 b bn 2009 : R Rs 103 b bn 2003 : 12 12x P Premi
Slide 16: Luxury consumption in Tier II & III 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 9Coimbatore – Audi, Porsche sold 35 cars in 2009 9Surat - 11 Mercedes (27 l - 3 c) sold in a month 9 0% off high 950% hi h end d TVs TV are sold ld outside id metr
Slide 17: Diverse, Sustainable Business Model
DIVERSE, SUSTAINABLE BUSINESS MODEL g 17 e o oo “ ‘ Dainik Bhaskar Divya Bhaskar fasetaunwe Dial re) Si. oe DB Corp Ltd
Slide 18: Even distribution of our 17.5 MN average daily readers
UNIFORMLY DISTRIBUTED EBIDTA FROM OUR DIVERSIFIED MARKETS Our business in Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Haryana, Punjab, Chandigarh etc. individually contributes towards the EBIDTA, thus reducing the dependability on any one single market EVEN DISTRIBUTION OF OUR 17.5 MN AVERAGE
Slide 19: Maximize our Ad-Revenues
60% of our Ad revenue is from the Retail market / Local market A client base of around 300 Thousand Retail advertisers fuel our ggrowth as we offer them opportunity pp y to advertise with various options as – Specific city, district, town, region, state This kind of reach cannot be offered effective
Slide 20: Radio business: launched in 2006, 17 stations in 7 states
• Launched in 2006, now operates from 17 stations in 7 states • The only Radio Company to have achieved EBIDTA positive within a short span of 2.5 years only. • Rs. 25 MN as on 31st December EBIDTA has increased by Rs December’10 10 on YOY Basis. • Advt. revenue growth of 37% - Qtr 3 December’ 2010
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS e Robust Growth in Profits ¢e Strong Focus on ROCE ¢ Low Debt Exposure & High Networth >». g 21 9 o @ =A ‘ Dainik Bhaskar Divya Bhaskar fasetaure@e -!:' re) Si. to DB Corp Lid
Slide 22: Revenue Growth Drivers
Revenue Growth Growth in Advertising Revenue (INR MN) (INR MN) Revenue Growth Drivers Revenue Breakdown Q3 FY 2011 Upward revision of ad rates at national Circulation Other 3.8% and local level 15.5% High focus on Retail Advertisers driving growth Over all Economic Conditions are positive po
Slide 23: EBITDA Growth and PAT Growth
EBITDA Growth PAT Growth (INR MN) (Net Margins in INR MN) EBIDTA Margins PAT Margins (Net Margins) 23
Slide 24: ROCE, RONW, Debt to Equity, Debt to EBITDA
Return on Capital Employed (ROCE) Return on Net Worth (RONW) Debt to Equity Debt to EBIDTA 24
Slide 25: Cost structure and Gross Fixed Assets
Newsprint Cost to Total Cost Personnel Cost to Total Cost Other Operating Cost to Total Cost Gross Fixed Assets (INR MN) 25
Slide 26: Gross Debt and Net Debt
Gross Debt (INR MN) Net Debt (INR MN) 26
Slide 27: Financial Summary
FINANCIAL SUMMARY December-10 December-1t Growth % Particulars (INR million) March-08 March-08 March-10 Advertising Income 6,430 7,256 6,086 Circulation Revenue 1,824 2,009 2,118 Total Income 8,627 9,610 10,630 Newsprint (3,365) (4,075) (3,279) Other Operating Expenditure (3,433) (4,062) (3,922) Tot
Slide 28: Management and Board of Directors
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 29: Thank You
THANK YOU 8 29 7k ae anes esc = DNA re) “ PP DB Corp Lid