Db Corp. Ltd. · NSE:DBCORP
Db — Non-Deal Roadshow (June 2010)
27 slides from Db's roadshow presentation, June 2010
Slide 1: DB Corp. Investor Presentation June 2010
DB Corp. Investor Presentation June 2010 a 1 DB Corp Lid ca oO Dainik Bhaskar Divya Bhaskar
Slide 2: Dainik Bhaskar Divya ae fasta areas DAI e@ =e PP DB Corp Lid
2 Dainik Bhaskar Divya ae fasta areas DAI e@ =e PP DB Corp Lid
Slide 3: A Leading Media Company of India
A LEADING MEDIA COMPANY OF INDIA Third Largest Market Cap in Entertainment & Media Sector === === = DAI
Slide 4: Around 15.8 MN readers in India's fastest growing markets
Around 15.8 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 States Multiple St t • Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Haryana, Punjab, Chandigarh, Maharashtra, Himachal Pradesh, Delhi • Launching Jammu, Jharkhand & Bihar shortly Multiple Languages • Hindi, G
Slide 6: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 1995 2010 ‘state > RM states Eaitions Mh > | EB Ecitions:
Slide 7: Leading in Each Market
LEADING IN EACH MARKET • Madhya Pradesh (MP) – Dominating the market with a market share of around 3 times over nearest competitors. • Chattisgarh – 27% lead over nearest competitors • Rajasthan – Maintaing, Sustaining and Increasing lead to 44% over nearest competitor in Jaipur . Besides, we are mu
Slide 8: Consistent Track Record of Profitability
CONSISTENT TRACK RECORD OF PROFITABILITY FyYng FY07 Fyna Fyvna Fvin m Revenues (USD MN) || NET INCOME (USD MN) 8 —— = _ ° Dainik Bhaskar Divya Bhaskar faoriauraz DNA 2 a. Se DB Corp Ltd
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 e 11 DB Corp Lid === === = DAI
Slide 12: India
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: 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 R1 09 13
Slide 14: The Per Capita Income is growing faster in Tier II & III cities
Source: IRS 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 : USD 0 0.89 89 BN 2009 : USD 2 2.19 19 BN 2003 : 12 12x P Premi
Slide 15: Diverse, Sustainable Business Model
DIVERSE, SUSTAINABLE BUSINESS MODEL ee: == == === SS SS DNA DB Corp Lid
Slide 16: Even Distribution of Our 15.8 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 15.8 MN AVERAGE
Slide 17: 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 18: Radio business overview
• Launched in 2006, now operates from 17 stations in 7 states • Average age of each radio station is 2.5 years only. • EBIDTA Break-even as on 31st March, 2010. • Current revenue growth of approx . 30 % - YTD March 2010. • Strong Competitive advantage because of knowledge of consumers & advertisers
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS e Robust Growth in Profits ¢ Strong Focus on ROCE ¢ Low Debt Exposure & High Networth > ca oO oe ‘, ¢ Dainik Bhaskar Divya Bhaskar fasrtaurae DAI e =e db activation
Slide 20: Revenue Growth Drivers
Revenue Growth Growth in Advertising Revenue (USD MN) (USD MN) Revenue Breakdown FY 2010 Revenue Growth Drivers Upward revision of ad rates at national and local level Increase in cover price High focus on Retail Advertisers driving growth 20
Slide 21: EBITDA Growth and Net Income Growth
EBITDA Growth Net Income Growth ((USD MN)) ((Net Margins g in USD MN)) EBIDTA Margins PAT Margins (Net Margins) 21
Slide 22: ROCE, RONW, Debt to Equity, Debt to EBIDTA
Return on Capital Employed (ROCE) Return on Net Worth (RONW) Debt to Equity Debt to EBIDTA 22
Slide 23: 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 (USD MN) 23
Slide 24: Gross Debt and Net Debt
Gross Debt (USD MN) Net Debt (USD MN) 24
Slide 25: Financial Summary
FINANCIAL SUMMARY Particulars (USD MN) March-07 Advertising Income 104 Circulation Revenue 35 Total Income 143 Newsprint Other Operating Expenditure Total Expenditure EBITDA EBITDA Margin Net Profit Net Worth Secured Long Term Gross Loan Cash & Bank Balance Secured Working Capital Loan Total Gross D
Slide 26: 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 27: A Leading Media Company of India
A LEADING MEDIA COMPANY OF INDIA Third Largest Market Cap in Entertainment & Media Sector : 27 Dainik Bhaskar Divya Bhaskar ee ined bes activation DB Corp Ltd