Slide 1: DB Corp Ltd. Investor Presentation October 2012
DB Corp Ltd. Investor Presentation October 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 19.6 MN readers in India's fastest growing markets
A Around d 19.6 19 6 MN readers d in i India’s I di ’ fastest f t t growing i markets k t 3
Slide 4: A Leader in Print Readership 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 – Emerging Tier II & III Cities • Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Haryana, Punjab, Chandigarh, Maharashtra, Himachal Pradesh, Uttrakhand, Jh
Slide 5: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH DB Corp Ltd aftamme: Raienese ferent — ey gelthede:com
Slide 6: Focused on Growing Media Opportunities in India
FOCUSED ON GROWING MEDIA OPPORTUNITIES IN INDIA -REGIONAL MARKETS
Slide 7: India states, metros and union territories
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 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 Print Play
Regional Print Play Future Outlook in India ® deinlkbhseker.com DB Corp Lid emer Ronse fiend xine: EP Soom
Slide 10: 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 11: Consumption growth is higher in Tier I & II 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 12: 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 13: 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 14: Diverse, Sustainable Business Model
DIVERSE, SUSTAINABLE BUSINESS MODEL e ® e DB Corp Ltd asus: fecicnese faeraenst fawtauewe BSF iutrmigcm 14
Slide 15: Even distribution of 19.6 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 19.6 MN AVERAGE
Slide 16: Expansion Journey Continues
D B Corp Ltd. Expansion Journey Continues — Successful Jharkhand & Maharashtra Launch 3 deinlkbhseker.com e e ° @ divyebhasher.com DB Corp Ltd aMoursz (fecacnese fant fasiauee< ey delythesion com 16
Slide 17: Ranchi Jharkhand readership
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 launched from Aurangabad
1st Edition from Aurangabad Aurangabad, 2nd Edition from Nashik, 3rd Edition from Jalgaon 4th Edition from Ahmednagar and 5th Edition from Solapur… 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 All leader & Divya Marathi 342 28 58 86 25% leader in SEC AB Lokmat 273 15 39 54 20% Daily D il Sakal S k l 65 4 8 12 18% Figs in ‘000 The affluent tru
Slide 20: Consistent Leaders from then till now
Average Issue Readership in ‘000s Jaipur IRS 12 Q2 Dainik Bhaskar 1115 Nearest Competitor 769 Consistent Chandigarh/ Haryana IRS 12 Q2 Leaders from then Dainik Bhaskar 1454 Nearest Competitor 1042 till now… Ahmedabad IRS 12 Q2 Divya Bhaskar 1134 Nearest Competitor 880 A it Amritsar IRS 12 Q2 Dainik
Slide 21: 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. Rs 153 m
Slide 22: Digital business growth
• Digital Business has shown a impressive growth of 1950% in last 3 years . • Our Unique Visitors have grown to 10 million per month, thus registering growth of 1650% in last 3 years. • Collective page views stands at 250 million per month month. • www.dainikbhaskar.com has become largest Hindi lang
Slide 23: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS ¢ Robust Growth in Profits ¢ Strong Focus on ROCE & RONW ¢ Low Debt Exposure, High Net worth & Strong Balance Sheet & 3 poate DB Corp Ltd a eonase ferent —— ey ‘nina 23
Slide 24: Revenues and PAT
Revenues (INR MN) PAT (INR MN) Revenues (INR MN) PAT (INR MN) 24
Slide 25: Mature vs emerging editions quarterly results
Rs MN QTR 2 QTR 2 (FY 11 12) 11-12) (FY 12 13) 12-13) Particular Total Total Mature Emerging Stand Alone Mature Emerging Stand Alone Topline 3086 302 3515 3135 453 3741 EBIDTA 1002 (194) 819 928 (98) 876 (Before pre-opex) EBIDTA 1002 (231) 782 928 (99) 875 (After pre-opex) EBIDTA % 33% (77%) 22% 30%
Slide 26: Revenue growth drivers
Revenue Advertisement Revenue Revenue Breakdown Qtr. 2’FY13 Other, 7% Revenue Growth Drivers Circulation, 18% Upward revision of ad rates at national and local level Driving growth through Retail Advertisers IImproved d Circulation, Ci l ti in i Existing E i ti and d Newer N Markets and bett
Slide 27: EBITDA and PAT growth
EBITDA Growth PAT Growth (INR MN) INR MN) EBIDTA Margin PAT Margins (Net Margin) 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
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 September-11 September-12 Growth % Advertising Income 7256 8086 10034 11281 2750 2826 3% Circulation Revenue 2009 2118 2144 2422 601 700 17% Total T l Income I 9610 10630 12794 12 94 14755 14 3509 3 09 3784 3 84 8
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