Slide 1: DB Corp Ltd. Investor Presentation September 2011
DB Corp Ltd. Investor Presentation September 2011 Pe a ee a © ny @ orp Lid 1
Slide 2: A Leading Media Company of India
A LEADING MEDIA COMPANY OF INDIA Third Largest Market Cap in Entertainment & Media Sector ne, a GY osc @ orp Lid 2
Slide 3: Around 18.1 MN readers in India's fastest growing markets
Around 18.1 MN readers in India’s fastest growing markets 3
Slide 4: 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, Uttarakhand, Jh kh d JJammu & K Jharkhand, Kashmir h i &DDelhi lhi • Launching B
Slide 5: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 1995 2011 i > Bp Esitions Readership (MN) RP > = 2 2 f bad : afte awe féczi ones DA fect wert facta eee & DB Corp Lid
Slide 6: Focused on Growing Media Opportunities in India - Regional Markets
FOCUSED ON GROWING MEDIA OPPORTUNI i™, IN INDIA -REGIONAL MARKETS @ 6 Pe a en ae Corp Lid
Slide 7: India: states and languages, DB Corp 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 8: 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 9: 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 9
Slide 10: 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) 2,897 Indian Language English 40% 40% 1,355 Indian 603 English
Slide 11: 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 12: Diverse, Sustainable Business Model
DIVERSE, SUSTAINABLE BUSINESS MODEL ne, a GY osc @ orp Lid 12
Slide 13: Even distribution of our 18.1 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 18.1 MN AVERAGE
Slide 14: Expansion Journey Continues - Successful Jharkhand Launch
D B Corp Ltd. Expansion Journey Continues — Successful Jharkhand Launch @ 14 ® Pe a en ae Corp Lid
Slide 15: Competition was fierce
Readership p in ‘000 IRS ’10 Q Q3 Hindustan 192 Prabhat Khabar 223 Dainik i ik Jagran J 75 AIR figures in ‘000 Competition was fierce Circulation figs JJ ’10 ABC Ranchi city Hindustan 43512 Prabhat Khabar 67033 Dainik Jagran 18711 p Survey IRS = Indian Readership y ABC= Audit Bureau of Circulation 1
Slide 16: Ranchi Jharkhand: Dainik Bhaskar leader in SEC AB
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 17: Consistent Leaders from then till now
Average Issue Readership in ‘000s Jaipur IRS 11 Q1 Dainik Bhaskar 1023 Nearest Competitor 713 Consistent Chandigarh/ Haryana IRS 11 Q1 Leaders from then Dainik Bhaskar 1503 till now… Nearest Competitor 1013 Ahmedabad IRS 11 Q1 Divya Bhaskar 1084 Nearest Competitor 843 Winning is our Amritsar IRS 11
Slide 18: Marathi editions from Aurangabad, Nashik and Jalgaon
1st Edition from Aurangabad, 2nd Edition from Nashik and 3rd Edition from Jalgaon Jalgaon… … 18
Slide 19: Dainik Divya Marathi teaser campaign
Dainik Divya Marathi A Teaser Campaign Using Hoardings, Hoardings Banners, Banners SMS and Newspaper Inserts 19
Slide 20: Phase I, Phase 2, Phase 3
Phase I Phase 2 Phase 3 Phase 4 20
Slide 21: Household survey in Aurangabad
Decided to meet every Marathi reading households of Aurangabad to understand their latent needs and expectation from Newspaper To survey 0.15 mn household in Aurangabad (To arrive at above figures, a detailed analysis was done for the households with gas connections (0.17mn), electricity connect
Slide 22: Survey team recruitment and training
Recruited Padamshri Mr. Kumar Ketker, the most renowned Marathi Editor since last 40 years. Intensive training of surveyors for 10 days by experts on body language and presentability A standardised contact method for the appearance and behavior of the surveyors 25 Computers deployed for data
Slide 23: The Survey Verdict
The Survey Verdict @ 23 afemez aense ON aunt Setrme @ DB Corp Ltd
Slide 24: Radio business
• 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 17 17.3% 3% in Q1 FY2011-12 FY2011 12 on YOY Basis • Achieved EBIDTA margin of 14% in Q1 FY2011-12 • Strong
Slide 25: Financial Highlights
FINANCIAL HIGHLIGHTS ¢ Robust Growth in Profits ¢ Strong Focus on ROCE ¢ Low Debt Exposure & A S High Networth oF w= @ 25 Pe a en ae Corp Lid
Slide 26: Mature vs emerging editions Q1 FY12
Rs MN Mature Emerging Particular Editions Editions (Q1 FY12) (Q1 FY12) Topline 3183.3 219.4 EBIDTA(before 1181.1 -112.1 pre-opex) EBIDTA (after 1180.9 -173.4 pre-opex) p p ) EBIDTA % 37.1% -79.0% Revenues (INR MN) PAT (INR MN) Revenues (INR MN) PAT (INR MN) 26
Slide 27: Revenue growth drivers
Revenue Advertisement Revenue Revenue Breakdown Q1 FY2012 Revenue Growth Drivers Upward revision of ad rates at national and local level High focus on Retail Advertisers driving growth Over all Economic Conditions are positive, resulting in improved advertisement market sentiments Further
Slide 28: EBITDA and PAT Growth
EBITDA Growth PAT Growth (INR MN) (Net Margin in INR MN) EBIDTA Margin PAT Margins (Net Margin) 28
Slide 29: ROCE, RONW, Debt to Equity, Debt to EBITDA
Return on Capital Employed (ROCE) Return on Net Worth (RONW) Debt to Equity Debt to EBIDTA 29
Slide 30: 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) 30
Slide 31: Gross Debt and Net Debt
Gross Debt (INR MN) Net Debt (INR MN) 31
Slide 32: Summary financials by year and quarter
Year Ended Quarter ended Particulars (INR million) March-09 March-10 March-11 June-10 June-11 Growth % Advertising Income 7,256 8,086 10,016 2357 2832 20.2% Circulation Revenue 2,009 2,118 2,144 537 568 5.7% Total Income 9,610 10,630 12,652 2987 3537 18.4% Newsprint (4,075) (3,279) (3,838) (832) (1,
Slide 33: Management team and board
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 34: Thank You
THANK YOU © 34 pe ee ee DB Corp Lid