Slide 1: DB Corp Ltd. Investor Presentation July 2012
DB Corp Ltd. Investor Presentation July 2012 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: A Leading Media Company of India
A LEADING MEDIA COMPANY OF INDIA cites ree | 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
Slide 3: Around 19.02 MN readers in India's fastest growing markets
A Around d 19 19.02 02 MN readers d iin IIndia’s di ’ ffastest t t growing i markets k t 3
Slide 4: A Leader in Print Readership, operating 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 ute ~ ME tions EN ~ IEE Conp-L ETRE | To od tri tlGESy vivb wider ADWniicd deci BRane cittorants SOC nga ONOHE (ESSE
Slide 6: Focused on Growing Media Opportunities in India - Regional Markets
FOCUSED ON GROWING MEDIA OPPORTUNITIES IN INDIA -REGIONAL MARKETS
Slide 7: India: DB Corp markets and target expansion
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 1991, India had 23 cities with a million or more people people. A decade later later, it had 35. Currently the same is 53 cities
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 purchases in smaller cities
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: 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. individually contributes towards the EBIDTA, thus reducing the dependability on any one single market EVEN DISTRIBUTION OF OUR 19.02 MN AVERAGE
Slide 15: Expansion Journey Continues
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: Competition was fierce - Ranchi
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, August 2010
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 expansion
1st Edition from Aurangabad, 2nd Edition from Nashik, 3rdd Edition Editi ffrom J Jalgaon l 4th Edition from Ahmednagar and 5th Edition from Solapur… p 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 12 Q1 Dainik Bhaskar 1070 Nearest Competitor 759 Consistent Chandigarh/ Haryana IRS 12 Q1 Leaders from then Dainik Bhaskar 1438 Nearest Competitor 1065 till now… Ahmedabad IRS 12 Q1 Divya Bhaskar 1144 Nearest Competitor 893 Winning is our A it Amritsar IR
Slide 21: Radio business
• Launched in 2006, now operates from 17 stations in 7 states • 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 growth of 13% in Qtr 1’FY13 on YOY Basis. • Achieved EBIDTA margin of 21% and PAT margi
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 (INR MN)
Revenues (INR MN) PAT (INR MN) Revenues (INR MN) PAT (INR MN) 23
Slide 24: Mature vs emerging editions results
Rs MN QTR 1 QTR 1 FY 11 12 11-12 (FY 12 13) 12-13) Particular Total Total Mature Emerging Stand Alone Mature Emerging Stand Alone Topline 3183 219 3527 3175 441 3756 EBIDTA 1181 (112) 1086 961 (109) 881 (Before pre-opex) EBIDTA 1181 (173) 1024 961 (121) 869 (After pre-opex) EBIDTA % 37% (79%) 29% 30
Slide 25: Revenue Growth Drivers
Revenue Advertisement Revenue Revenue Breakdown Qtr. 1’FY13 Other, 7% Revenue Growth Drivers Circulation, Upward revision of ad rates at national 17% and local level High focus on Retail Advertisers driving growth Improved Circulation, in Existing and Newer Markets and better price realizati
Slide 26: EBITDA Growth and PAT Growth
EBITDA Growth PAT Growth (INR MN) INR MN) EBIDTA Margin PAT Margins (Net Margin) 26
Slide 27: 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) 27
Slide 28: ROCE, RONW, Debt to Equity
Return on Capital Employed (ROCE) Return on Net Worth (RONW) Debt to Equity Debt to EBIDTA 28
Slide 29: Gross Debt and Net Debt (INR MN)
Gross Debt (INR MN) Net Debt (INR MN) 29
Slide 30: Summary financials by year and quarter
Year Ended Quarter ended Particulars (INR million) March-09 March-10 March-11 March-12 June-11 June-12 Growth % Advertising Income 7256 8086 10034 11281 2842 2862 0.7% Circulation Revenue 2009 2118 2144 2422 568 658 15.9% Total T l Income I 9610 10630 12652 126 2 14638 3537 3 3 3784 3 84 7.0% 0% New
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: 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