Slide 1: DB Corp Ltd. Investor Presentation November 2011
DB Corp Ltd. Investor Presentation November 2011 8 e@ o : afte ane féczi cnese DNA\ faci nent Resta ww @ DB Corp Lid
Slide 2: A Leading Media Company of India
A LEADING MEDIA COMPANY OF INDIA Third Largest Market Cap in _ Entertainment & Media ' Sector o 2 @Remez Rares: TN dime fawtaenee @& DB Corp Lid
Slide 3: Around 18.4 MN readers in India's fastest growing markets
Around 18.4 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 Multiple States • Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Haryana, Punjab, Chandigarh, Maharashtra, Himachal Pradesh, Uttrakhand, Jharkhand, Jammu & Kashmir & Delhi • Launching Bihar shortly Multiple Languages •
Slide 5: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 1995 2011 ~ > TET eaitions: > EG Languages aa Ps) 5 sewn Reuters DNA foci rect fests masz ey DB Corp Lid
Slide 6: Focused on Growing Media Opportunities in India - Regional Markets
FOCUSED ON GROWING MEDIA OPPORTUNI Hoe IN INDIA -REGIONAL MARKETS e® ° @Remez Rares: TN dime fawtaenee @& DB Corp Lid
Slide 7: India
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: 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, 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 is 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: Consumption growth 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 950% of high end TVs are sold outside metros 9TAG Heuer - 35 uni
Slide 12: Diverse, Sustainable Business Model
DIVERSE, SUSTAINABLE BUSINESS MODEL o 12 tices: «= Rnters: «TT aire «steer «© YB Corp Lid
Slide 13: Even distribution of our 18.4 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 18.4 MN AVERAGE
Slide 14: Expansion Journey Continues - Successful Jharkhand Launch
D B Corp Ltd. Expansion Journey Continues — Successful Jharkhand Launch at o 14 ahem: Resens2 TT dian — fatamez @ DB Corp Ltd
Slide 15: Competition was fierce
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 Khabar 67033 Dainik Jagran 18711 IRS = Indian Readership Survey ABC= Audit Bureau of Circulation 15
Slide 16: Ranchi Jharkhand, August 2010 Dainik Bhaskar
Ranchi Jharkhand , 22 August 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 affluent
Slide 17: Consistent Leaders from then till now
Average Issue Readership in ‘000s Jaipur IRS 11 Q2 Dainik Bhaskar 1033 Nearest Competitor 735 Consistent Chandigarh/ Haryana IRS 11 Q2 Leaders from then Dainik Bhaskar 1475 till now… Nearest Competitor 1007 Ahmedabad IRS 11 Q2 Divya Bhaskar 1083 Nearest Competitor 858 Winning is our Amritsar IRS 11
Slide 18: Maharashtra edition expansion
1st Edition from Aurangabad, 2nd Edition from Nashik, 3rd Edition from Jalgaon and 4th Edition from Ahmednagar… 18
Slide 19: Maharashtra, Aurangabad July 2011 Divya Marathi
Maharashtra, Aurangabad 29 July 2011 AIR SEC Average Issue SEC AB % of Total Base Readership Estimates Reader Base A B AB Divya Marathi Over 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% Punya Nagari 25 1 1 2 8% Figs in ‘000 The afflue
Slide 20: 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 26% in Q2 FY2011-12 on YOY Basis • Achieved EBIDTA margin of 9% in Q2 FY2011-12 • Strong Competitive advanta
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS e Robust Growth in Profits e Strong Focus on ROCE ¢ Low Debt Exposure& 4\\ High Networth — CO st o 21 @Remez Rares: TN dime fawtaenee @& DB Corp Lid
Slide 22: Mature and Emerging Editions Q2 FY12
Rs MN Mature Emerging Particular Editions Editions (Q2 FY12) (Q2 FY12) Topline 3086 302 EBIDTA(before 1002 -194 pre-opex) EBIDTA (after 1002 -231 pre-opex) EBIDTA % 32.5% -76.7% Revenues (INR MN) PAT (INR MN) Revenues (INR MN) PAT (INR MN) 22
Slide 23: Revenue Breakdown and Growth Drivers
Revenue Advertisement Revenue Revenue Breakdown Q 2 FY2012 Revenue Growth Drivers Upward revision of ad rates at national Other, 6% and local level Circulation, 17% High focus on Retail Advertisers driving growth Over all Economic Conditions are positive, resulting in improved advertisement
Slide 24: EBITDA and PAT Growth
EBITDA Growth PAT Growth (INR MN) INR MN) EBIDTA Margin PAT Margins (Net Margin) 24
Slide 25: ROCE, RONW, Debt to Equity
Return on Capital Employed (ROCE) Return on Net Worth (RONW) Debt to Equity Debt to EBIDTA 25
Slide 26: 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) 26
Slide 27: Gross Debt and Net Debt
Gross Debt (INR MN) Net Debt (INR MN) 27
Slide 28: Summary financials
Year Ended Quarter ended Particulars (INR million) March-09 March-10 March-11 September-10 September-11 Growth % Advertising Income 7,256 8,086 10,016 2359 2735 15.9% Circulation Revenue 2,009 2,118 2,144 532 601 13.0% Total Income 9,610 10,630 12,652 3010 3539 17.6% Newsprint (4,075) (3,279) (3,838
Slide 29: Board and management
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 30: Thank You
THANK YOU for) 30 dates: Reienase DBA facta fete ees: @ DB Corp Ltd