Db Corp. Ltd. · NSE:DBCORP
Db — Equirus Investor Conference 2017
28 slides from Db's conference presentation, September 2017
Slide 1: D B Corp Ltd. Investor Presentation
D B Corp Ltd. Investor Presentation September 2017 VALUES – Trendsetting | Result-oriented | Analytical | Connected 1
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: Indian Media & Entertainment Industry
Indian Media & Entertainment Industry Media Sector – Strong & Consistent Growth (INR bn) 1157 1262 1026 918 728 821 652 2010 2011 2012 2013 2014 2015 2016 • M&E industry size was Rs. 1262 bn in 2016, which grew by 9% over 2015. • Expected CAGR growth is 14% till 2021. Media Spend as % of GDP 0.97% 0
Slide 4: Print Maintains Largest Ad-pie – Language Print Witnesses Higher Growth
Print Maintains Largest Ad-pie – Language Print Witnesses Higher Growth OOH Radio 6% Online 4% 4% Print: Indian Print Language Print: English 47% 42% Television 58% 39% Radio OOH 4% 5% 2010 – Rs. 265.5 bn Online 15% Print Print: Indian 38% Language Print: English 65% 35% Television 38% 2016 – Rs. 52
Slide 5: Print & Indian Language Advertising Revenue
Print & Indian Language Advertising Revenue Indian Language Print Print Media 2016 – Indian Language Print Media is Largest component of print advertising, as a % of print ad pie at 65%; – Indian Language Print is expected to maintain a healthy CAGR of double digit for next 4 – 5 years. Source: FICC
Slide 6: Consistent High % Growth of Indian Newspapers
Consistent High % Growth of Indian Newspapers • Print is growing at an incredible 4.87% CAGR over a 10 year period from 2006 to 2016. • Absolute copies per day increased by 2.37 cr to 6.28 cr in 2016 from 3.91 cr copies in 2006. Hindi 8.76% Telgu 8.28% Kannada 6.40% Tamil 5.51% Malayalam 4.11% Engli
Slide 7: D B Corp Ltd - The Largest Print Media Company In India
D B Corp Ltd - The Largest Print Media Company In India Major Business Brands Hindi Newspaper 11 States, 43 Editions Gujarati Newspaper 2 States, 9 Editions Marathi Newspaper 1 State, 6 Editions FM Radio Network 7 States, 30 Stations Digital & Mobile 13 Portals & 2 Apps 7
Slide 8: Presence Across Fast Growing Markets
Presence Across Fast Growing Markets INDIA 10 Metros1 29 States 7 Union Territories Delhi, Mumbai, Ahmedabad Less: 6 Union Territories Less: 7 NE States Chennai Jaipur (Non Focused Markets) (Non Focused Markets) Hyderabad, Kolkata, Surat Bangalore, Pune Remaining: (Major) 1 U.T. Remaining: Major 22S
Slide 9: Focused on Largest Revenue Markets of India
Focused on Largest Revenue Markets of 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, Jha
Slide 10: Dainik Bhaskar Newspaper Is World's 4th Largest Circulated Newspaper
„Dainik Bhaskar‟ Newspaper Is World‟s 4th Largest Circulated Newspaper WAN IFRA‟s World Press 2015 2016 Trends Reports: 4th Rank 4th Rank (3.6 mn copies) (3.8 mn copies) 2014 11th Rank (2.5 mn copies) Other top 3 newspapers as per 2016 Reports: Copies Title Country (million) 2013 The Yomiuri Shimbun
Slide 11: Strategic Focus Area - Editorial Strategy
Strategic Focus Area - Editorial Strategy Innovative reader engagement initiatives CONTENT STRATEGIES Thought Leadership Journalism- = “No Negative Knowledge enhancement for reader Monday” High Quality Reviews & Content + opinion by Jacket on eminent Sunday Product differentiation towards growth aut
Slide 12: Circulation Strategy – Proven Track Record
Circulation Strategy – Proven Track Record 1. 15% CAGR Growth: For 5 years, from FY 2011-12 to FY 2016-17 is 15% largely driven by yield in our core legacy markets. 2. Dainik Bhaskar becomes the nation‟s largest circulated Multi-Edition Daily as per Press In India Report 2015-16 prepared by Registra
Slide 13: Expansion Strategy – Digital Business
Expansion Strategy – Digital Business DB Digital strategy emphasis in Hindi, Gujarati and Marathi - 3 of the top 5 regional languages, occupies 65% of Language space of India PILLARS OF DIGITAL EXISTENCE • Offering bouquet of content – special teams for hyper- localized news in religion, business, n
Slide 14: Focused, Strong Brands For Growing Digital Audiences
Focused, Strong Brands For Growing Digital Audiences Dainikbha Fashion1 skar.com Divyabha 01.in skar.co.in Jeevanm Dailybhas antra.in kar.com Dbcric.co Divyamar m athi.com 13 Portals Bollywoo Food.bha skar.com 2 APPS dbhaskar. com Gadgets. Moneybh bhaskar.c askar.co om m Dainik Homeonli Bhaskar ne.c
Slide 15: The New Game Changer: dainikbhaskar.com Is India's 2nd Largest News Destination
The New Game Changer: dainikbhaskar.com Is India‟s 2nd Largest News Destination Comscore News & Information – March 2017 Unique Visitors (Mn) Individual Sites 58 60 35 31 40 28 27 20 0 TOI Bhaskar.com NDTV.com Jagran.com Aajtak Page Views (Mn) Individual Sites 2819 3000 2000 1062 590 390 341 1000 0
Slide 16: Digital Snapshot
Digital Snapshot • Digital Revenue (Rs. mn) 567 460 303 161 103 57 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016-17 • www.bhaskar.com - No. 1 Hindi News website and also the Hindi Language website on internet. • www.divyabhaskar.com - No. 1 Gujarati News website and also the Gujarati Langua
Slide 17: Digital Way Forward
Digital Way Forward Digital is moving towards personalization - creating our product & future strategy based on Big Data analysis Huge popularity in video Exponentially growing consumption amongst all smartphone penetration - platforms - creating content focusing on mobile visitors & distribution st
Slide 18: Expansion Strategy – Radio Business
Expansion Strategy – Radio Business Introduction: • Launched in 2006, 94.3 MY FM operates from 30 stations in 7 states • 94.3 MY FM continues to be no.1. in markets of Madhya Pradesh, Chhattisgarh and Rajasthan and largest network in Chandigarh, Punjab and Haryana. Post Phase 3 Radio Auctions: • Con
Slide 19: Current Initiatives
Current Initiatives Activities Launched 13 new stations with a distinct content strategy Sabse Badi Patangbaaz, Jiyo of customer centric approach Dil Se Awards, Entrepreneur for – music, humour, language Awards, Ek Pyala Khushi, and RJ mix. Paison Ka Ped, Dawat-e- music and many more. 10 year celebr
Slide 20: Historical Outperformance Track Record
Historical Outperformance Track Record Total Revenue (Rs. mn) 1273 1076 960 801 555 672 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17 EBIDTA Revenue (Rs.mn) & its Margin (%) 478 393 400 318 220 38% 124 40% 41% 37% 22% 33% 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17 20
Slide 21: Robust Growth in Profits
Robust Growth in Profits Strong Focus on ROCE & RONW Low Debt Exposure High Net worth & Strong Balance Sheet bad S eS DB Corp Lid | dfteurewz a fecéi ararct ey Ggoicrat *homeonlinecom ae &. 21
Slide 22: Proven Track Record of Topline & Bottom Line Growth (contd.)
Proven Track Record of Topline & Bottom Line Growth… (contd.) Advertisement Revenue (Rs. mn) 15166 15973 10016 12075 6979 4866 4136 4336 2006-07 2008 -09 2010- 11 2012 -13 2014-15 2016-17 Q1 2016-17 Q1 2017-18 Total Revenue (Rs. mn) 22750 20353 16137 12794 9324 6724 5787 6012 2006-07 2008 -09 2010-
Slide 23: Proven Track Record of Topline & Bottom Line Growth
Proven Track Record of Topline & Bottom Line Growth EBIDTA Revenue (Rs. mn) & its Margin (%) 6592 5879 4173 3974 1618 1853 1933 983 29% 29% 33% 25% 32% 32% 15% 17% 2006-07 2008-09 2010-11 2012-13 2014-15 2016-17 Q1 2016-17 Q1 2017-18 PAT (Rs. mn) & its Margin (%) 3748 3163 2585 2181 1040 1101 598 68
Slide 24: Healthy Operating Profit In Our Mature Market
Healthy Operating Profit In Our Mature Market Rs MN Q1 (FY16-17) Q1 (FY17-18) Annual (FY 15-16) Annual (FY 16-17) Particulars Matured Matured Matured Matured Print / Emerging DBCL Print / Emerging DBCL Print / Emerging DBCL Print / Emerging DBCL Radio / Business* Standalone Radio / Business* Standal
Slide 25: Strong Balance Sheet & Financial Ratios
Strong Balance Sheet & Financial Ratios Return on Capital Employed 34% 33% 34% 38% 35% 30% 27% 28% 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Q1 2016-17 Q1 2017-18 Return on Net Worth 27% 25% 26% 21% 25% 24% 22% 21% 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Q1 2016-17 Q1 2017-18 25
Slide 26: Financial Summary
Financial Summary Quarter Ended Particulars (INR million) 15-Mar 16-Mar 17-Mar Q1 FY17 Q1 FY18 Growth % Advertising Income 15166 14812 15973 4136 4336 4.84% Circulation Revenue 3755 4356 4814 1176 1234 4.93% Total Income 20353 20783 22750 5787 6012 3.89% Newsprint (6479) (6186) (6609) (1600) (1708)
Slide 27: Board Of Directors
Board Of Directors Sudhir Agarwal 27 years of experience in the publishing and newspaper business Managing Director responsible for its long-term vision, business planning and performance monitoring Pawan Agarwal 13 years of experience in the publishing business Deputy Managing Director Head
Slide 28: For more information, please visit our website www.bhaskarnet.com
For more information, please visit our website www.bhaskarnet.com VALUES – Trendsetting | Result-oriented | Analytical | Connected 28