Slide 1: DB Corp Ltd. Investor Presentation February 2012
DB Corp Ltd. Investor Presentation February 2012 afte arene TO BE THE LARGEST AND MOST ADMIRED MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Slide 2: A Leading Media Company of India
A LEADING MEDIA COMPANY OF INDIA Third Largest Market Cap in Entertainment & Media Sector afte unewe TO BE THE LARGEST AND MOST ADMIRED MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Slide 3: 19.2 MN readers in India's fastest growing markets
A Around d 19.2 19 2 MN readers d in i India’s I di ’ fastest f t t growing i markets k t 3
Slide 4: A Leader in Print Readership in highest growth markets
A Leader L d in i Print P i t Readership, R d hi operating ti iin the th highest hi h t growth th markets k t in i India I di Multiple States • Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Haryana, Punjab, Chandigarh, Maharashtra, Himachal Pradesh, Uttrakhand, Jharkhand, Jammu & Kashmir & Delhi
Slide 5: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 1995 2012 ‘State > BEY states: Eaitions BLY eaitions (WB tanguages: DB Corp Ltd aftamme: Raienese ferent — ey gelthede:com
Slide 6: Focused on Growing Media Opportunities in India
FOCUSED ON GROWING MEDIA OPPORTUNITIES IN INDIA -REGIONAL MARKETS
Slide 7: India: Focus States and Languages
INDIA 28 States 6 Metros (English 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
Slide 8: 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 1991, India had 23 cities with a million or more people people. A decade later later, it had 35. Currently estimated close to 60
Slide 9: Regional Markets
REGIONAL MARKETS • Tier II & III cities are catalysts of growth in India, Regional Newspapers dominate the market • SEC A & B Population is growing faster in Tier II & III Cities • Around 27% of Literate population of India, currently read newspaper, leaving wide gap for readership growth, for futur
Slide 10: Consumption Growth Is Higher in Tier II & III Cities
CONSUMPTION GROWTH IS HIGHER IN TIER I! & TIER Il CITIES Growth 2008 vs 201 Tier Il Consumer Durables Ownership (Air Conditioners) 104% IT & Communication Products Ownership 20% 66% 44% Automobile Ownership ‘i 6 ‘ (4 Wheelers) 27% 61% 58% FMCG Product Purchases 10% 17% 15% Source: IRS Q3 ‘11 DB Corp
Slide 11: Per Capita Income Growing Faster in Tier II & III Cities
• The Per Capita Income is growing faster in Tier II & III cities. • The Players with readership domination, in the major markets, will get benefitted, in long term, due to resultant Advertisement growth • ‘Regional Language Newspaper to play a vital role’ – Group M Report Indian Language gaining sh
Slide 12: Luxury consumption outside metros
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 13: Diverse, Sustainable Business Model
DIVERSE, SUSTAINABLE BUSINESS MODEL e ® e DB Corp Lid asus: fecicnese faeraenst fawtauewe BSF iutrmigcm 13
Slide 14: Even Distribution of 19.2 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 19.2 MN AVERAGE
Slide 15: Expansion Journey Continues - Successful Jharkhand Launch
D B Corp Ltd. Expansion Journey Continues — Successful Jharkhand 43 _ Launch o w= ied deinibbhssker.com @ e @ divyebhesher.com DB Corp Ltd dfsmez (Rucnese fears fasdtamenz ey delukhanker com 15
Slide 16: Ranchi: Competition was fierce
Readership in ‘000 IRS ’10 Q3 Hindustan 192 Prabhat Khabar 223 Dainik Jagran 75 AIR figures in ‘000 Competition was fierce Circulation figs JJ ’10 ABC Ranchi city Hindustan 43512 Prabhat bh Khabar h b 67033 Dainik Jagran 18711 IRS = Indian Readership Survey ABC= ABC Audit Bureau of Circulation 16
Slide 17: Ranchi Jharkhand readership
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 18: Maharashtra editions from Aurangabad, Nashik, Jalgaon, Ahmednagar
1st Edition from Aurangabad, 2nd Edition from Nashik, 3rdd Editi Edition ffrom JJalgaon l and d 4th Edition from Ahmednagar… g 18
Slide 19: Maharashtra, Aurangabad readership
Maharashtra, Aurangabad M 2011 May Average Issue AIR SEC SEC AB % of Total Readership Base Reader Base Estimates A B AB Divya Di Marathi M hi Over O Divya Marathi 342 28 58 86 25% All leader & Lokmat 273 15 39 54 20% leader in SEC AB Daily Sakal 65 4 8 12 18% Figs in ‘000 The affluent truly apprecia
Slide 20: Consistent Leaders from then till now
Average Issue Readership in ‘000s Jaipur IRS 11 Q3 Dainik Bhaskar 1050 Nearest Competitor 746 Consistent Chandigarh/ Haryana IRS 11 Q3 Leaders from then Dainik Bhaskar 1432 Nearest Competitor 959 till now… Ahmedabad IRS 11 Q3 Divya Bhaskar 1129 Nearest Competitor 873 Winning is our A it Amritsar IRS
Slide 21: Radio business highlights
• 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 • Advertisement revenue growth of 22% in Q3 FY2011-12 on YOY Basis • Achieved EBIDTA margin of 28% in Q3 FY2011-12 • Strong Competitive advant
Slide 22: Financial Highlights
FINANCIAL HIGHLIGHTS ¢ Robust Growth in Profits e Strong Focus on ROCE ¢ Low Debt Exposure & High Networth ® @ ® e e Gvyatheeler.com DB Corp Ltd aMoursz (fecacnese fant fasiauee< ey delythesion com 99
Slide 23: Revenues and PAT
Revenues (INR MN) PAT (INR MN) Revenues (INR MN) PAT (INR MN) 23
Slide 24: Mature vs Emerging Editions
Rs MN Mature Editions *Emerging Editions ((FY 11-12)) ((FY 11-12)) Particular YTD YTD Q1 Q2 Q3 Q1 Q2 Q3 Dec Dec Topline 3183 3086 3381 9651 219 302 376 897 EBIDTA 1181 1002 1141 3323 -112 -194 -144 -445 (Before pre-opex) EBIDTA 1181 1002 1141 3323 -173 -231 -165 -570 (After pre-opex) EBIDTA % 37% 33
Slide 25: Revenue Breakdown and Growth Drivers
Revenue Advertisement Revenue Revenue Breakdown Q 3 FY2012 Revenue Growth Drivers Upward revision of ad rates at national Other, 7% and local level Circulation, 16% High focus on Retail Advertisers driving growth Improved Circulation, in Existing and Newer Markets and better price realisatio
Slide 26: EBITDA and PAT Growth
EBITDA Growth PAT Growth (INR MN) INR MN) EBIDTA Margin PAT Margins (Net Margin) 26
Slide 27: ROCE, RONW, Debt to Equity
Return on Capital Employed (ROCE) Return on Net Worth (RONW) Debt to Equity Debt to EBIDTA 27
Slide 28: 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) 28
Slide 29: Gross Debt and Net Debt
Gross Debt (INR MN) Net Debt (INR MN) 29
Slide 30: Summary financials
Year Ended Quarter ended Particulars (INR million) March-09 March-10 March-11 December-10 December-11 Growth % Advertising Income 7,256 8,086 10,016 2815 3059 8.7% Circulation Revenue 2,009 2,118 2,144 540 632 17.0% Total Income 9,610 10,630 12,652 3482 3956 13.6% Newsprint (4,075) (3,279) (3,838) (
Slide 31: 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 32: Thank You
THANK YOU afte puree | TO BE THE LARGEST AND MOST ADMIRED MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE