Db Corp. Ltd. · NSE:DBCORP
Db — Investor Presentation (January 2014)
28 slides from Db's investor presentation, January 2014
Slide 1: DB Corp Ltd. Investor Presentation January 2014
DB Corp Ltd. Investor Presentation _ January 2014 afta arewz | 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 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: Print industry revenues and media spend as % of GDP
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 821 bn in 2012, which grew by 13% over 2011. Expected CAGR growth is 15% till 2017. § 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 population of India has grown to 656259 (in ‘000) from 537117 (in ‘000) in last 5 years from 2007 to 2012. Source: IRS Q3 ‘12 4
Slide 5: A Leading Media Company of India
A LEADING MEDIA COMPANY OF INDIA STN AN ARE Saat He dainikbhaskar.com divyabhaskar.com dailybhaskar.com divyamarathi.com e féce1 enes2 afte arae ® DB Corp Ltd
Slide 6: Around 44.2 million total readership and 19.8 MN daily readers
Around 44.2 million Total Readership &19.8 MN Daily readers in India’s fastest growing markets 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, Uttarakhand, Jharkhand, Bihar, Jammu & Kashmir
Slide 8: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 1997 2014 ‘State > EM states: Editions > IGM Eaitions: Language MN > QM tanguages Readership (MN) RW => — DB corp Lid afte wre ecaienese facaaentt facta nea er : dainikbhaskar.com
Slide 9: Focused on Growing Media Opportunities in India
FOCUSED ON GROWING MEDIA OPPORTUNITIES — IN INDIA -REGIONAL MARKETS DB corp Lid + ites eae ecaienese facaaerht facta nea @ > <eihesacom
Slide 10: Growth 2008 vs. 2012: Metros, Tier II, Tier III
GROWTH 2008 VS. 2012 METROS TIER II TIER III Consumer Durables Ownership (Air Conditioner) 69% 135% 131% Consumer Durables Ownership (Electric Geyser) 28% 85% 59% IT & Communication Products 69% 116% 105% Automobile (Ownership) 40% 83% 66% FMCG Product Purchases 17% 42% 30% Source: IRS Q3 ‘12 10
Slide 11: Indian language gaining share of ad-pie
2005 2012 7% 1% 7% 3% 6% Television 4% 38% 42% Print Radio OOH 48% Online 46% 2005- Rs. 130.4 bn 2012- Rs. 327 bn Indian Language gaining share of ad-pie English 50% English 39% Indian Language 61% Indian Language 50% 2005 : Rs 69 bn 2012 : Rs 150 bn Source: FICCI KPMG Report , IRS , TAM Adex 11
Slide 12: India: states and 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 13: Diverse, Sustainable Business Model
DIVERSE, SUSTAINABLE BUSINESS MODEL dainikbhaskar.com Oo ie) ie) ivys "com DB corp Lid | tomes: fecrcnese ferment fascias ey cna com 43
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 dependability on any one single market EVEN DISTRIBUTION
Slide 15: Divya Marathi editions in Maharashtra
so far 7 editions from Aurangabad, Nashik, Jalgaon, Ahmednagar, Solapur, Akola & Amravati… 15
Slide 16: Divya Marathi is a formidable player in SEC AB
Maharashtra, Aurangabad May 2011 Average Issue AIR SEC SEC AB % of Total Readership Base Reader Base Estimates A B AB Divya Marathi is a Formidable Player Divya Marathi 176 21 49 70 40% Overall & Lokmat 270 21 52 73 27% in SEC AB Daily Sakal 130 3 25 28 22% Figs in ‘000 The affluent truly appreciate
Slide 17: Consistent leaders from then till now
Average Issue Readership in ‘000s Jaipur IRS 12 Q4 Dainik Bhaskar 1040 Nearest Competitor 792 CONSISTENT Chandigarh/ Haryana IRS 12 Q4 LEADERS FROM Dainik Bhaskar 1455 Nearest Competitor 1108 THEN TILL NOW… Ahmedabad IRS 12 Q4 Divya Bhaskar 1097 Nearest Competitor 848 Amritsar IRS 12 Q4 Dainik Bhask
Slide 18: 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. 239 mill
Slide 19: Digital business
• Digital Business has shown a impressive growth of 1950% in last 3 years • Our Unique Visitors have grown to 13 million per month, thus registering growth of 1650% in last 3 years. • Collective page views stands at 385 million per month. • www.dainikbhaskar.com has become largest Hindi language web
Slide 20: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS ¢ Robust Growth in Profits ¢ Strong Focus on ROCE & RONW ¢ Low Debt Exposure, High Net worth & Strong Balance Sheet 2 DB corp Lid + ites eae eareuese fecraerdt ayaa tee @& see
Slide 21: Revenue breakdown and growth drivers
Revenue Breakdown Q3 Revenue Breakdown Q1 FY14 FY14 Other 7% Circulation Revenue 16% 77% Advt Revenue Advt Revenue Circulation Revenue Other Revenue Growth Drivers § Upward revision of ad rates at national and local level § Driving growth through Retail Advertisers § Improved Circulation, in Existin
Slide 22: Robust advertisement and revenue growth
ROBUST ADVERTISEMENT & REVENUE GROWTH Advertisement Revenue (Mn) row th 14% % CAGR G wth 18.4 YOY Gro wt h 18.2% YOY Gro 9 mnths 9 mnths FY 09 FY 10 FY 11 FY 12 FY 13 YTD Dec YTD Dec FY 13 Q3 FY 14 Q3 FY13 FY14 Total Revenue (Mn) 14% 17 .8% rowth rowth C AGR G YOY G 18.6% rowth YOY G FY 09 FY 10 FY
Slide 23: EBITDA and PAT growth and margin
EBITDA Growth & its Margin (INR MN) % row th 38.5 28.4% YOY G Growth CAGR % row th 31.1 YOY G 9 mnths 9 mnths FY 09 FY 10 FY 11 FY 12 FY 13 YTD Dec FY 13 Q3 FY 14 Q3 YTD Dec FY13 FY13 FY14 PAT Growth &its Margin (INR MN) % row th 46.3% row th 41.7 CAGR G YOY G 33.8% rowth YOY G 9 mnths 9 mnths FY 09
Slide 24: Matured vs emerging editions performance
Rs MN YTD YTD 9 mnths YTD Dec 9 mnths YTD Dec (FY 11-12) (FY 12-13) (FY 12-13) (FY 13-14) Particulars DBCL DBCL DBCL DBCL Matured Emerging Matured Emerging Matured Emerging Matured Emerging Standalone Standalone Standalone Standalone Topline 12736 1243 13979 13365 1758 15123 10070 1396 11954 12306 1
Slide 25: Return on Capital Employed (ROCE) and Return on Net Worth (RONW)
Return on Capital Employed (ROCE) FY 09 FY 10 FY 11 FY 12 FY 13 FY 13 Q3 FY 14 Q3 Return on Net Worth (RONW) FY 09 FY 10 FY 11 FY 12 FY 13 FY 13 Q3 FY 14 Q3 25
Slide 26: Consolidated financial summary
Year Ended Quarter ended Particulars (INR million) March-10 March-11 March-12 March-13 Dec-12 Dec-13 Growth % Advertising Income 8086 10034 11281 12075 3412 4035 18.2% Circulation Revenue 2118 2144 2422 2823 731 830 13.5% Total Income 10630 12794 14755 16137 4429 5254 18.6% Newsprint (3279) (3838) (
Slide 27: Management team and board
n Chairman - 44 years of experience Ramesh Chandra Agarwal n Served as Chairman of FICCI of the MP region n Managing Director of DBCL Sudhir Agarwal n 27 years of experience in the publishing and newspaper business n 19 years of experience. Won the E&Y ‘Young Entrepreneur of the Year 2006 ’ Award Gi
Slide 28: Thank You
THANK YOU afta arewz | 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