Slide 1: D B Corp Ltd. Investor Presentation
D B Corp Ltd. Investor Presentation November 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 Television 47% 42% 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 Hindi copies per day increased by 1.39 cr to 2.45 cr in 2016 from 1.06 cr copies in 2006. Hindi 8.76% Telgu 8.28% Kannada 6.40% Tamil 5.51% Malayalam 4.11%
Slide 7: Huge Headroom For Print Growth
Huge Headroom For Print Growth 700.9 • Hindi garners to 40% share of the Average Issue Readership size of 173.8 India • Of 422 mn Hindi population size, Can Read Any Print Reading newspaper penetration Population Population is only 16% Source: IRS 2013 Figs in Millions 7
Slide 8: 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 9: 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, 45 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 9
Slide 10: 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 11: 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 12: Key Developments / Initiatives and Current Focus Area
Key Developments / Initiatives and Current Focus Area bad e 8 DB Corp Lid | dfteurewz a fecéi ararct ey Ggoicrat *homeonlinecom ae &.
Slide 13: Strategic Focus Area - Editorial Strategy
Strategic Focus Area - Editorial Strategy Innovative reader engagement initiatives Thought Content associations with: Harvard Business Leadership Review, TIME Magazine, New York Times, The Journalism- “No Negative Economist etc. are established for providing Monday” global world class content. High
Slide 14: 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 Registr
Slide 15: Unique users per month and sessions per month
371 102 232 57 September'16 September'17 September'16 September'17 Unique users per month Sessions per month (in million) (in million) Source: Google Analytics 15
Slide 16: Expansion Strategy – Digital Business
Expansion Strategy – Digital Business Indian Language Internet Users are the PRESENT and the FUTURE ● The next wave of 200 Million internet users will be Indian language users ● 60% of the Indian Language internet users are Hindi ● Indian Mobile Internet Users form 90% of the Indian internet users *
Slide 17: Transformation from CONTENT to PRODUCT organization
Transformation from CONTENT to PRODUCT organization Recommendation - Best in the industry globally, leveraging big data and AI. 24% higher than any other competitive brand in the industry Real-time Insights In-house tool to empower the editorial with content performance and traffic, based on propert
Slide 18: 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 19: The Most Preferred News Destination in Mobile Website
The Most Preferred News Destination in Mobile Website Avg Daily Unique Visitors (Mn) User Frequency (Mn) 5.5 6.7 4.3 5.9 5.5 3.1 BHASKAR.COM TOI JAGRAN.COM BHASKAR.COM Aaj Tak TOI 237 219 Total Visits (Mn) 131 Source: Comscore News & Information – September 2017 Bhaskar.com TOI Aaj Tak 19
Slide 20: Digital Snapshot
Digital Snapshot • Digital Revenue (Rs. mn) 567 460 303 161 57 103 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 • www.bhaskar.com - No. 1 Hindi News website and also The Most Preferred News Destination in Mobile Website. • www.divyabhaskar.com - No. 1 Gujarati News website and The Undisputed Lead
Slide 21: Digital Way Forward
Digital Way Forward Digital is moving towards personalization Creating our product & future strategy based on Big Data analysis Focus on Speed More Engagement Zero buffering and ensuring hassle To keep the readers hooked onto free reading experience our platform through engaging content, innovative
Slide 22: Expansion Strategy – Radio Business
Expansion Strategy – Radio Business 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. Consolidating presence in line with strategy t
Slide 23: Current Initiatives
Current Initiatives Ek Rakhi Fauji Ke Naam, Exclusive Music Partner for Silent Garbha & Goodness ka Bollywood movies (Harry met Group in Gujarat, Sejal, Simran , Badshaho and Padmavati) Ek Diya in Maharashtra and many more. 10 year celebration - Surat Offering in house musical (Jalsarath) jingle pro
Slide 24: Historical Outperformance Track Record
Historical Outperformance Track Record Total Revenue (Rs. mn) 1273 1076 960 801 661 555 672 579 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 H1 FY H1 FY 2017 2018 EBIDTA Revenue (Rs.mn) & its Margin (%) 478 393 400 318 220 250 149 124 40% 41% 37% 38% 33% 43% 21% 22% FY 2012 FY 2013 FY 2014 FY 201
Slide 25: 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 &. 25
Slide 26: 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 7876 8301 4866 FY 2007 FY 2009 FY 2011 FY 2013 FY 2015 FY 2017 H1 FY H1 FY 2017 2018 Total Revenue (Rs. mn) 22750 20353 12794 16137 9324 11219 11753 6724 FY 2007 FY 2009 FY 2011
Slide 27: 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 3400 3390 1618 983 29% 33% 25% 29% 30% 29% 15% 17% FY 2007 FY 2009 FY 2011 FY 2013 FY 2015 FY 2017 H1 FY H1 FY 2017 2018 PAT (Rs. mn) & its Margin (%) 3748 3163 2585 2181 1925 1888 598 68
Slide 28: Healthy Operating Profit In Our Mature Market
Healthy Operating Profit In Our Mature Market Rs MN Q2 (FY16-17) Q2 (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 29: Strong Balance Sheet & Financial Ratios
Strong Balance Sheet & Financial Ratios Return on Capital Employed 35% 34% 33% 35% 30% 32% 27% 28% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 H1 FY H1 FY 2017 2018 Return on Net Worth 27% 25% 21% 25% 24% 22% 21% 22% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 H1 FY H1 FY 2017 2018 29
Slide 30: Financial Summary
Financial Summary Quarter Ended Half Year Ended Growth Particulars (INR million) 15-Mar 16-Mar 17-Mar Q2 FY17 Q2 FY18 H1 FY17 H1 FY18 Growth % % Advertising Income 15166 14812 15973 3740 3966 6.03% 7876 8301 5.40% Circulation Revenue 3755 4356 4814 1179 1273 7.97% 2354 2506 6.46% Total Income 20353
Slide 31: 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 32: 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 32