Db Corp. Ltd. · NSE:DBCORP
Db — Citi Investor Conference (May 2010)
29 slides from Db's conference presentation, May 2010
Slide 1: DB Corp. Investor Presentation May 2010
DB Corp. Investor Presentation May 2010 a 1 DB Corp Lid ca oO Dainik Bhaskar Divya Bhaskar
Slide 2: Over 15.5 Mn readers in India's fastest growing markets
Over 15.5 Mn readers in India’s fastest growing markets 2
Slide 3: A Leading Media Company of India with Consistent track record of Growth and Profitability
A Leading Media Company of India with Consistent track record of Growth and Profitability Focused ocused on o Growing Go g Media ed a Opportunities Oppo tu t es in India da Best Positioned to gain out of presence in tier II and III cities Sustainable business model Multiple Growth Opportunities 3
Slide 4: A Leading Media Company of India
A LEADING MEDIA COMPANY OF INDIA Third Largest Market Cap Company in Entertainment & Media Sector ca oO oe ‘ ( Dainik Bhaskar Divya Bhaskar fasrtaurae DAI re] ia Db activation
Slide 5: 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, Delhi Multiple Languages • Hindi, Gujarati, j English g • 24% Urban population of India resid
Slide 6: States, editions and readership
St t 1 State States 11 Editions 5 Editions 48 Language 1 Languages 3 Readership p 3.2 Mns Readership p 15.5 Mns 6
Slide 7: Dominance in Each Market
DOMINANCE IN EACH MARKET • Madhya Pradesh (MP) – Dominating the market with a market share 7 times over nearest competitors; A lead of 138% and 245% in Indore and Bhopal respectively • Chattisgarh – 50% lead over nearest competitors • Rajasthan – Has taken over the leadership status from competitors
Slide 8: Consistent Track Record of Profitability
CONSISTENT TRACK RECORD OF PROFITABILITY 1 610 d ii 627 9000 a m8 a 6,744 fuuus ii 330 5000- YTD Dec 2009 3000- 1,461 1000- ie 4000- FY06 FYO7 FY08 FYO9 Apr-Dec 09* tl Revenues (INR Mn) | PAT (Net Margin in INR Mn) 8 S oo) eo ‘, ® Dainik Bhaskar DivyaBhaskar faatelaure@z DNA 2 a. activation DB Corp
Slide 9: DBCL has demonstrated success in every market it has entered
Identify Successful Performance Profitable markets High growth markets with low print DB Corp’s proven market entry strategy has redefined category norms penetration and broke barriers across languages & geography, time and again. Ability to justify Revenue Jaipur – Dec 1996 - No.1 from the da
Slide 10: The Launch of Divya Bhaskar, Ahmedabad
THE LAUNCH OF DIVYA BHASKAR, AHMEDABAD -A Case Study at IIM, Ahmedabad • Pre-Launch door-to-door Contact Programme of 1200 Thousand Households was conducted to understand current needs and desires of Readers by a team of 1050 surveyors in 45 days • Potential readers were asked to design their dream
Slide 11: Focused on Growing Media Opportunities in India
FOCUSED ON GROWING MEDIA OPPORTUNITIES IN INDIA -REGIONAL MARKETS e 11 DB Corp Lid === === = DAI
Slide 12: India states and languages map
INDIA 28 States 6 METROS (ENG. Play) 7 Union Territories Del, Mum, Hyd,Chen, Less: 7 NE States Kol, Bang Less: 6 Union Territories (Non Focused Markets) (Non Focused Markets) Remaining: Major 21States Remaining: (Major) 1 U.T.Chandigarh Hindi Bengali Oriya Marathi Gujarati Southern DB Corp 1 State 1
Slide 13: Regional Markets
REGIONAL MARKETS • Tier II & III cities are catalysts of growth in India 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 R1 09 13
Slide 14: Per Capita Income is growing faster in Tier II & III cities
Source: IRS 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) 2003 : R Rs 42 b bn 2008 : R Rs 108 b bn 2003 : 12 12x P Premium i 20
Slide 15: Key Urban Towns and Rest of Urban India consumption
• As per E&Y report, March 08, Key Urban Town (KUT) & Rest of Urban India (ROUI) , representing Tier 2 & 3 Cities are contributing to a large proportion ti off India I di consumption ti • KUT & ROUI are increasingly becoming important as consumption centers for consumer durables & FMCG companies,p ,
Slide 16: Details of Urban Population and its Relative Consumption
DETAILS OF URBAN POPULATION AND ITS RELATIVE CONSUMPTION Split of Urban population Estimated All India Urban Expenditure (INR cr) 2008-2009 Source: IRS The KUT & ROUI contribute approximately 73% of India’s Urban Expenditure Source: Indicus Analytics, Market Skyline of India 16
Slide 17: Average Growth in urban household income
Average Growth in urban household income (%) Average urban household income growth is highest in the KUT followed by the ROUI Expected Annualized % growth of Market 2004-2015 Growth in Number of Malls: Metros vs. KUTs (2006-2008)E Source: Indicus Analytics, Market Skyline of India 17
Slide 18: Sustainable Business Model
SUSTAINABLE BUSINESS MODEL oa 18 == == === SS SS DNA DB Corp Lid
Slide 19: Even Distribution of Our 15.5 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 15.5 MN AVERAGE
Slide 20: High Barriers to Entry in All Our Markets
HIGH BARRIERS TO ENTRY IN ALL OUR MARKETS COVER PRICE WITH HIGH PAGINATION Our papers have an average cover price of Rs. 2.50/- with an average 20.5 pages per day. WELL SPREAD INFRASTRUCTURE Geographically well spread printing infrastructure nearer to end consumer, with state of the art technology a
Slide 21: Maximize Our Ad-Revenues
60% of our Ad revenue is from the Retail market / Local market A client base of around 290 Thousand Retail advertisers fuel our ggrowth as we offer them opportunity pp y to advertise with various options as – Specific city, district, town, region, state This kind of reach cannot be offered effective
Slide 22: Radio business overview
• Launched in 2006, now operates from 17 stations in 7 states • A 3 Year-old venture in to New Media - close to financial Break-even as on 31st Dec. 09 • Current revenue growth of approx 30 % - YTD DEC. 09 • Strong Competitive advantage because of knowledge of consumers & advertisers, in these marke
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS ¢ Robust Revenue Growth ¢ Strong Focus on ROCE 23 S © ‘, ¢ Dainik Bhaskar Divya Bhaskar meee tn activation DB Corp Lid
Slide 24: Revenue Growth Drivers
Revenue Growth Growth in Advertising Revenue (INR Mn) (INR Mn) Revenue Breakdown Apr - Dec 2009 Revenue Growth Drivers Upward revision of ad rates at national and local level Increase in cover price High focus on Retail Advertisers driving growth 24
Slide 25: EBITDA Growth and PAT Growth
EBITDA Growth PAT Growth (INR Mn) (Net Margins in INR Mn) EBIDTA M Margins i PAT Margins M i (Net (N t Margins) M i ) 25
Slide 26: ROCE, RONW, Debt to Equity
Return on Capital Employed (ROCE) Return on Net Worth (RONW) Sep numbers are annualized. Sep numbers are annualized. Debt to Equity Debt to EBIDTA Debt /Equity Debt /EBIDTA 26
Slide 27: Financial Summary
FINANCIAL SUMMARY Particulars (INR Min) March-07 Circulation Income 1,662 Advertising Income 4,882 Total Income 6,744 Newsprint Non Newsprint Expenditure EBITDA EBIDTA Margin Net Profit Net Worth Secured Long Term Loan Secured Working Capital Loan Total Debt Net Block (Fixed) ROCE RONW Dainik Bhaska
Slide 28: Management and Board
Chairman - 42 years of experience Ramesh Chandra Agarwal Served as Chairman of FICCI of the MP region Managing Director of DBCL Sudhir Agarwal 25 years of experience in the publishing and newspaper business 17 years of experience. Won the E&Y ‘Young Entrepreneur of the Year 2006 ’ Award Gi
Slide 29: Thank You
THANK YOU : : feo: OM OD LLL SIE Dainik Bhaskar DivyaBhaskar faatelaure@z DNA activation DB Corp Lid