Slide 1: DB Corp Ltd. Investor Presentation January 2016
DB Corp Ltd. Investor Presentation January 2016 afta: are | 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 263 243 224 57 209 51 193 46 42 54 36 50 45 37 41 62 65 57 59 53 69 75 81 87 67 2010 2011 2012 2013 2014 Sub. Rev Eng. Ad. Rev Hin. Ad. Rev Ver. Ad. Rev. M&E industry size was Rs 1026 bn in 2014, which grew by 11.7% over 2013. Expected CAGR g
Slide 4: Can Read Population and Newspaper Reach
Can Read Population (in ‘000) Newspaper Reach (in ‘000) 26% Growth (Growth From 2007 – 2012) (Growth From 2007 – 2012) 87,320 59,378 6,252 1,526 English Hindi English Hindi 9% Growth 11% Growth 41% Growth Indian Language gaining share of ad-pie English English 50% 37% Regional Regional 50% 63% 2005
Slide 5: Ad Spend Share by Medium, 2005 vs 2014
2005 2014 7% 1% 11% 2.50% 5% Television 4% 37% 42% Print Radio OOH Online 48% 43% 2005- Rs. 130.4 bn 2014- Rs. 414 bn Source: FICCI KPMG Report 2015 55
Slide 6: 44.2 MN Total Readership and 19.8 MN Daily Readers in Fastest Growing Markets
Around 44.2 MN Total Readership &19.8 MN Daily readers in India’s fastest growing markets 66
Slide 7: A Leader in Print Readership, Operating in 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, Uttarakhand, Himachal Pradesh, Jharkhand, Bihar, Jammu & Kashmir &
Slide 8: 14 States, 40 Hindi Editions, 7 Gujarati Editions
State 01 14 States Hindi Editions 05 40 Hindi Editions Gujarati Edition 00 07 Gujarati Editions Marathi Edition 00 07 Marathi Editions Languages 01 04 Languages Readership (MN) 3.2 19.8 Readership (MN) 88 8
Slide 9: India Market Footprint by State
INDIA 29 States 7 Metros (English Play) 7 Union Territories Delhi, Mumbai, Chennai Less: 7 NE States Hyderabad, Kolkata, Less: 6 Union Territories (Non Focused Markets) Bangalore, Pune (Non Focused Markets) Remaining: Major 22States Remaining: (Major) 1 U.T.Chandigarh Hindi Bengali Oriya Marathi Guj
Slide 10: Even Distribution of Our 19.8 MN Average Daily Readers
EVEN DISTRIBUTION OF OUR 19.8 MN AVERAGE DAILY READERS Readership – IRS12 Q4 Maharashtra, 7% Chandigarh, Punjab, Bihar & Jharkhand 4% Haryana, 12% Gujarat, 19% Rajasthan, 32% Madhya Pradesh & Chhattisgarh, 26% 10 10
Slide 11: World's 4th Largest Newspaper, Market Focus Areas
• World Association of Newspaper (WAN IFRA) ranked DBCL as World’s 4th Largest Newspaper and also India’s largest newspaper. • Dominant & leading player in Madhya Pradesh , Chhattisgarh , Haryana, Urban Rajasthan, major markets of Gujarat and Punjab. Our focus is to further improve our lead • Rural
Slide 12: Product and Brand Initiatives
• Monday – “No Negative Monday” initiative – first such experiment in Indian Journalism • Sunday – Jacket Content Concept • City Bhaskar – For youth and women readership • New National Editorial Structure to focus on development of rural editions • Tie up with renowned publications like TIME Magazin
Slide 13: Sustained & Relentless Focus on Non-Print Media Strategy
SUSTAINED & RELENTLESS FOCUS ON NON- PRINT MEDIA STRATEGY.......... a — faaraerct EY PE\DIGITAL 13
Slide 14: Radio Business
• Launched in 2006, now operates from 17 stations in 7 states, namely Madhya Pradesh, Chhattisgarh, Punjab, Gujarat, Rajasthan, Chandigarh, Maharashtra • Leading radio station in majority of 17 markets. • Our Radio Business has achieved EBITDA breakeven in record 2.5 years time, from the time of ope
Slide 15: Digital Business: Online Presence
• Our online presence is in Hindi, Gujarati and Marathi, which account for around 70% of India’s regional language audience - as well as in English. • DBCL web properties continue to expand its readership base and with growing page views and unique visitors, dainikbhaskar.com continue to dominate Hi
Slide 16: Other Web Properties and Mobile Strategy
• DBCL other web properties being Bollywoodbhaskar.com, Dainikbhaskar.com/UP, Moneybhaskar.com, Fashion101.in, Jeevanmantra.in and DBCric.com . • DBCL is among the few independent digital media organization in country with editorial force of 250 people and total strength of 400+, operating with inde
Slide 17: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS ¢ Robust Growth in Profits ¢ Strong Focus on ROCE & RONW ¢ Low Debt Exposure, High Net worth & Strong Balance Sheet =A DB on Lid a a faaraerct EY PE\DIGITAL WV
Slide 18: Advertisement Revenue and Total Revenue
Advertisement Revenue (Mn) 15166 14178 12075 11281 10034 8085 7256 4283 4356 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Q3 FY15 Q3 FY16 Total Revenue (Mn) 20353 18836 16137 14755 12794 10630 9610 5574 5896 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Q3 FY15 Q3 FY16 18 18
Slide 19: EBITDA and PAT Growth and Margin
EBITDA Growth & its Margin (INR MN) FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 15 FY 16 Q3 Q3 PAT Growth & its Margin (INR MN) FY 09 FY 10 FY 11 FY 12 FY 14 FY 14 FY 15 FY 15 FY 16 Q3 Q3 19 19 19
Slide 20: Topline and EBITDA: Matured vs Emerging Business
Rs MN Annual (FY 14-15) Q3 (FY14-15) Q3 (FY15-16) YTD Dec (FY15-16) Particulars Emerging Emerging Emerging Emerging Matured DBCL Matured DBCL Matured DBCL Matured DBCL Business Business Business Business Topline 16417 2666 20347 4937 635 5573 5321 569 5891 14120 1406 15525 EBIDTA(Before 5804 (277) 5
Slide 21: Return on Capital Employed and Return on Net Worth
Return on Capital Employed (ROCE) 34.10% 34.50% 34.50% 33.60% 31.90% 30.60% 26.70% 28.10% 14.80% FY09 FY10 FY11 FY12 FY13 FY14 FY15 Q3 FY15 Q3 FY16 Return on Net Worth (RONW) 31.60% 28.70% 26.90% 24.64% 24.10% 22.00% 21.40% 21.19% 20.20% FY09 FY10 FY11 FY12 FY13 FY14 FY15 Q3 FY15 Q3 FY16 21 21
Slide 22: Year Ended and Quarter Ended Financials (INR million)
Year Ended Quarter Ended Particulars (INR million) 12-Mar 13-Mar 14-Mar 15-Mar Q3 FY15 Q3 FY16 Growth % Advertising Income 11281 12075 14178 15166 4283 4356 1.7% Circulation Revenue 2422 2823 3235 3755 969 1141 17.7% Total Income 14755 16137 18836 20353 5574 5896 5.8% Newsprint (5070) (5446) (6323)
Slide 23: 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 24: Thank You
THANK YOU afta: are | 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