Slide 1: DB Corp Ltd. Investor Presentation March 2013
DB Corp Ltd. Investor Presentation March 2013 cites ree | TO BE THE LARGEST AND MOST ADMIRED MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE VALUES PILLARS CREDIBILITY & INTEGRITY INNOVATIVE & ENTREPRENEURIAL RESPECT & APPRECIATION EMPOWERED TALENT INNOVATIVE PRODUCTS & PROCESSES ETHICAL GOVERNANCE
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: M&E industry size was Rs 728 bn in 2011
Print Industry Revenues (Rs bn) Media Spend as % of GDP Ad Revenue Sub Revenue Source: Worldwide Media & Mktg. Forecasts, Group M, Summer 2011 M&E industry size was Rs 728 bn in 2011, which grew by 12% over 2010. Expected CAGR growth is 15% till 2016. Indian Ad spend is expected to grow at a CAG
Slide 4: Can Read Population and Newspaper Reach growth
26% Growth Can Read Population (in ‘000) Newspaper Reach (in ‘000) (Growth From 2007 – 2012) (Growth From 2007 – 2012) 9% Growth 11% Growth 41% Growth Literate Li population l i off IIndia di hhas grown to 656259 6 62 9 (in (i ‘000) ffrom 537117 3 11 (in (i ‘000) iin last 5 years from 2007 to 2012
Slide 5: A Leading Media Company of India
A LEADING MEDIA COMPANY OF INDIA
Slide 6: Around 44.2 million total readership and 19.8 MN daily readers
A Around d 44.2 44 2 million illi Total T t lR Readership d hi &19 &19.8 8 MN D Daily il readers d i India’s in I di ’ fastest f t t growing i markets k t 6
Slide 7: 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 Leadership in Multiple States – Emerging Tier II & III Cities • Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Haryana, Punjab, Chandigarh, Maharashtra, Himachal Pradesh, Uttrakhand, Jharkhand, Jammu & Kashmir & Delhi
Slide 8: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 1997 2013 DB Corp Ltd —— ecronese faoraerdt ——— ey deuthedercom
Slide 9: Focused on Growing Media Opportunities in India - Regional Markets
FOCUSED ON GROWING MEDIA OPPORTUNITIES IN INDIA -REGIONAL MARKETS ied deinlkbhseker.com DB Corp Ltd femmes (eaonese ferent —— ey ‘nina
Slide 10: Consumption growth is higher in Tier II & Tier III cities
CONSUMPTION GROWTH IS HIGHER IN TIER Il & TIER Il CITIES Growth 2008 vs 2011 Tier Ill Consumer Durables Ownership : (Air Conditioners) — 108% o6% IT & Communication Products 20% 66% 44% Ownership Automobile Ownership 27% 61% 58% (4 Wheelers) FMCG Product Purchases 10% 17% 15% Source: IRS Q3 ‘12 DB C
Slide 11: Indian Language gaining share of ad-pie
Indian Language gaining share of ad-pie English English 50% 40% Indian Language 60% Indian Language 50% 2005 : Rs 69 bn 2011 : Rs 139 bn Hindi Started getting the Premium(On Value Basis) 1994 2591 603 276 English Hindi English Hindi 2005 : 7.2x Premium 2011 : 4.3x Premium Source: FICCI KPMG Report ,
Slide 12: India: states and focus markets
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 13: Diverse, Sustainable Business Model
DIVERSE, SUSTAINABLE BUSINESS MODEL e ® e e DB Corp Lid asus: fecicnese faeraenst fawtauewe BSF iutrmigcm 13
Slide 14: Uniformly distributed EBIDTA from our diversified markets
UNIFORMLY DISTRIBUTED EBIDTA FROM OUR DIVERSIFIED MARKETS Our business in Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Haryana, Punjab, Chandigarh etc. equally contributes towards top-line, bottom-line & our readership, thus reducing the d d bilit on any one single dependability i l market k t
Slide 15: Maharashtra expansion: editions from Aurangabad, Nashik and others
so far 5 editions from Aurangabad Nashik, Aurangabad, Nashik, Jalgaon, Jalgaon, Ahmednagar & Solapur… Solapur… 15
Slide 16: 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 All leader & Divya Marathi 342 28 58 86 25% leader in SEC AB Lokmat 273 15 39 54 20% Daily D il Sakal S k l 65 4 8 12 18% Figs in ‘000 The affluent tru
Slide 17: Consistent leaders from then till now
Average Issue Readership in ‘000s Jaipur IRS 12 Q3 Dainik Bhaskar 1088 Nearest Competitor 785 CONSISTENT Chandigarh/ Haryana IRS 12 Q3 LEADERS FROM Dainik Bhaskar 1475 Nearest Competitor 1034 THEN TILL NOW… NOW Ahmedabad IRS 12 Q3 Divya Bhaskar 1114 Nearest Competitor 863 A it Amritsar IRS 12 Q3 Dai
Slide 18: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS ¢ Robust Growth in Profits ¢ Strong Focus on ROCE & RONW ¢ Low Debt Exposure, High Net worth & Strong Balance Sheet & 3 poate DB Corp Ltd a eonase ferent —— ey ‘nina 18
Slide 19: Total Revenue and Advertisement Revenue
Advertisement Revenue (Mn) ( ) Total Revenue (Mn) 19
Slide 20: Revenue Breakdown Qtr. 3 FY13
R Revenue B kd Breakdown Qt Qtr. 3’FY13 Other, 6% Circulation, 17% Advertising, 77% Revenue Growth Drivers Upward revision of ad rates at national and local level Driving growth through Retail Advertisers Improved Circulation, in Existing and Newer Markets and better price realization Furthe
Slide 21: EBITDA Growth & Margin; PAT Growth & Margin
EBITDA Growth & its Margin (INR MN) PAT Growth &its Margin (INR MN) 21
Slide 22: Matured and Emerging editions results
Rs MN QTR 3 QTR 3 YTD DEC YTD DEC (FY 11-12) (FY 12-13) (FY 11-12) (FY 12-13) Particulars DBCL DBCL DBCL DBCL Matured Emerging Matured Emerging Matured Emerging Matured Emerging Standalone Standalone Standalone Standalone Topline 3381 376 3914 3698 497 4386 9651 897 10955 9995 1391 11869 EBIDTA(Befo
Slide 23: Return on Capital Employed and Return on Net Worth
R t Return on C Capital it l E Employed l d (ROCE) Return on Net Worth (RONW) 23
Slide 24: Financial summary table
Year Ended Quarter ended Particulars (INR million) March-09 March-10 March-11 March-12 December-11 December-12 Growth % Advertising Income 7256 8086 10034 11281 3059 3412 11.5% Circulation Revenue 2009 2118 2144 2422 632 731 15.7% Total T l Income I 9610 10630 12794 12 94 14755 14 3980 4427 442 11.2
Slide 25: Radio business
• Launched in 2006, now operates from 17 stations in 7 states, namely M.P., C.G., Punjab, Gujarat, Rajasthan, Chandigarh, Maharashtra • Our Radio Business has attained PAT in record less than 4 years time, from the time of operations of all 17 stations. • Strong Advertisement revenue of Rs. Rs 191 m
Slide 26: Digital business growth
• Digital Business has shown a impressive growth of 1950% in last 3 years . • Our Unique Visitors have grown to 10 million per month, thus registering growth of 1650% in last 3 years. • Collective page views stands at 250 million per month month. • www.dainikbhaskar.com has become largest Hindi lang
Slide 27: Board of Directors and management
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 28: cftas urea | TO BE THE LARGEST AND MOST ADMIRED MEDIA BRAND ENABLING SOCIO-ECONOMIC
cftas urea | TO BE THE LARGEST AND MOST ADMIRED MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE VALUES CREDIBILITY & INTEGRITY INNOVATIVE & ENTREPRENEURIAL RESPECT & APPRECIATION PILLARS EMPOWERED TALENT INNOVATIVE PRODUCTS & PROCESSES ETHICAL GOVERNANCE