#1DB Corp Ltd Investor Presentation February 2011 ૐ દિવ્યભાસ્કર www ખાદ્યતેલ, કઠોળ આગામી ૧૨૦૦૦ થી રેવ વઘા दैनिक भास्कर கி-ம் अट 2009-10 रियायत के नाम पर बंधे 'हाथ' 1407 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd 1#2Dainik Bhaskar VISION Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd 2#3Our Print Vision . Print media has long term growth in India. Literacy Rate, Purchasing Power & ambitions are growing in Tier II and III cities, hence, language media is still to grow. Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd 3#4India - A country with diversity C 28 States, 7 UT'S & 11 major Languages Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd#5India: State & UTS - A Snapshot % of State Classification POP Literacy Urban No. India (Mn) % % POP Hindi State 11 484 47 58 21 Details Southern 4 223 22 70 33 33 UP, Bihar, MP, Rajasthan, Jharkhand, Punjab, Haryana, Chhattisgarh, Uttarakhand, HP, J & K Tamil Nadu, Karnataka, Kerela, Andhra Pradesh States Other 5 266 26 71 33 Regional Maharashtra, Orissa, West Bengal, Gujarat, Goa States North East States 8 39 99 55 4 65 16 Assam, Tripura, Sikkim, Arunachal Pradesh, Mizoram, Meghalaya, Manipur, Nagaland Total States 28 1012 98 8 ་ 64 27 Union 7 16 2 81 88 territories Total 35 1028 100 65 28 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA NCR, Chandigarh, Pondicherry, A & N, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep Source: Census 2001, CIA - The World Fact Book dbactivation DB Corp Ltd 5 LO#6DB Corp Ltd. Strategy • Our thought process for evaluating the Market Parameters to look at Market How we go about executing our thoughts • Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd CO#7Strategic Foot Print in India Jammu & Kashmir Himachal Pradesh Chandigarh Punjab Rajasthan Haryana Uttrakhand Gujarat Madhya Pradesh Chattisgarh Jharkhand Current Market • ⚫ The 21st century is set to become India's 'urban century' • . The growth is happening not in large cities, but in small and midsized towns. 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 expected to cross 75 by census 2011 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd 7#8Successful, Experienced New Market Entry. Dainik Bhaskar. - The Launch of Rajasthan Market in December 1996 With our launch the Hindi Readership penetration has increased by 91% in two years time The Launch of Gujarat Market in June 2003 The Gujarati Readership penetration has increased by 50% over three years time, after our launch • The above facts establish that our new state launch generally increases the market size due to aggressive market pricing, better, updated and effective content strength Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd α#9Our Record Breaking journey to leadership outside Madhya Pradesh began with... Jaipur Rajasthan Dec 1996 Before After Now Jaipur IRS '95 IRS '99 IRS '10 Q3 Industry Wisdom Its IMPOSSIBLE to be Dainik Bhaskar NA 722 969 No 1 from Day 1 Nearest Player 441 493 720 We Proved Them Wrong Readers in '000 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd 6#10Chandigarh & Haryana June 2000 Time to prove: Rajasthan wasn't a success by chance Before After Now Chandigarh /Haryana IRS '00 IRS '02 IRS '10 Q3 Dainik Bhaskar NA 1909 1617 Nearest Player 1629 1283 1034 We Proved our success was robust Readers in '000 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd 10#11Ahmedabad Gujarat 2003 Perception: Dainik Bhaskar only connects with Hindi Before After Now Ahmedabad IRS '02 IRS '03 R1 IRS '10 Q3 Divya Bhaskar NA 984 1038 Nearest Competitor 1092 939 876 Readers in '000s We broke the Language barrier 11 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd#12Amritsar & Jalandhar Punjab 2006 Before After Now Amritsar IRS '06 R2 IRS '08 R2 IRS '10 Q3 A Dainik Bhaskar NA 169 171 crowded Nearest Player 164 143 103 market Before After Now with Jalandhar IRS '06 R2 IRS '08 R2 IRS '10 Q3 many Dainik Bhaskar NA 132 138 titles Nearest Player 143 103 95 Readers in '000s Its not about the players, its about our connect with the readers that matters 12 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd#13Launch of Ranchi edition On 22nd August, 2010 Dainik Bhaskar Group entered its 12th state; Jharkhand with Ranchi edition Ranchi in Jharkhand was selected for the launch of first edition due to its economic and market value Jharkhand Dhanbad Ranchi Jamshedpur Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd 13#14And we prove once again in a totally different market Ranchi Jharkhand, 22 August 2010 Jharkhand Dhanbad Ranchi Jamshedpur IMRB Survey Average Issue AIR SEC SEC AB % of Dainik Bhaskar Readership Base Total Reader A B AB leader in SEC AB Estimates Base Prabhat Khabar 303 60 58 118 39% Dainik Bhaskar 270 66 62 128 48% Hindustan 168 45 36 81 48% Jagran 92 14 17 31 34% All Figures in '000s The affluent truly appreciates quality content of Dainik Bhaskar 14 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd#15DB Corp Ltd Organization Structure Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA ૐ દિવ્યભાસ્કર www ખાદ્યતેલ, કઠોળ આગામી ૧૨૦૦૦ થી રેવ વઘા दैनिक भास्कर கி-ம் अट 2009-10 रियायत के नाम पर बंधे 'हाथ' 1407 dbactivation DB Corp Ltd 15#16Structured Organization with Defined Roles- Systematic and Professional Working Chief Marketing & Corp Sales Officer COO- MP & CG VP Circulations COO Rajasthan & Jharkhand MD COO Gujarat COO CPH CFO Chief Technical Officer Chief Human Resource Officer Executive Director (Liaison) Executive Director (MD Secretariat) National Editor Group Editor/ National Editor Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd 16#17Structured Organization with Defined responsibilities - till unit level National Editor MD Group Editor State Editor Managing Editor MP CG Jharkhand CPH Rajasthan Gujarat National Newsroom Typical structure of a state Unit Editor Section Heads City Bhaskar Central Desk City Reporting Regional Desk Bureau Chief DB Star 17 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd#18Organization Structure-State Structure State COO Business Head State Finance Head State Operation Head State HR Head State Production Head Unit heads of their respective States Unit Ad Sales Manager Unit Finance Manager Unit HR Manager Unit Production Manager Unit Circulation Manager All Unit Manager's administrative reporting is into Unit Head but they also report functionally to their respective State Function Heads Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd 18#19Key Financial Indicators 2,814 3,482 8,058 2,733 9,479 Rs MN Revenues EBIDTA -РАТ 3,235 1,906 1,148 1,461 959 506 660 Q3 FY10 Q3 FY 11 YTD DEC FY10 YTD DEC FY11 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA 19 dbactivation DB Corp Ltd#20FINANCIAL SUMMARY Year ended Quarter ended! Particulars (INR million) March-08 March-09 March-10 December-10 December-11 Growth % Advertising Income 6,490 7,256 8,086 2175 2810 29.2% Circulation Revenue 1,824 2,009 2,118 537 540 0.6% Total Income 8,627 9,610 10,630 2814 3482 23.7% Newsprint (3,365) (4,075) (3,279) (845) (1,065) 26.0% Other Operating Expenditure (3,433) (4,062) (3,922) (1,010) (1,270) 25.7% Total Expenditure (6,798) (8,137) (7,200) (1,855) (2,334) 25.8% EBITDA 1,829 1,473 3,429 959 1148 19.7% EBITDA Margin 21.2% 15.3% 32.3% 34.1% 33.0% Net Profit 751 476 1,828 506 660 30.5% Net Worth 2,165 2,360 6,361 6489 8301 Secured Long Term Gross Loan 2568 4,595 2,394 3986 1847 Cash & Bank Balance 808 452 1,960 494 1759 Secured Working Capital Loan 660 817 573 340 320 Total Gross Debt 3228 5412 2966 4327 2167 Net Block (Fixed) 3623 6471 6475 6540 7225 ROCE RONW 29% 15% 31.9% 27.6% 35.4% 35% 20% 28.7% 28.2% 30.6% Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA 20 dbactivation DB Corp Ltd#21Strategic Foot Print in India Jammu & Kashmi Now Adding Hinshhal Pradal Chandrah Punjab Rajasthan Haryana Uttrakhand Gujarat Madhya Pradesh Chattisgarh Maharashtra Jharkhand Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd 21 21#22Maharashtra- Launch of Marathi language Newspaper MADHYA PRADESH NANDURBAR GUJARAT DHULE AMRAVATI NAGPUR BHANDARA JALGAON AKOLA WARDHA BULDHANA NASHIK AURANGABAD WASHIM GADCHIROL YAVATMAL CHANDRAPUR DAMAN DADRA AND NAGAR HAVELI NANDED THANE GREATER MUMBAI MUMBAI JALNA AHMADNAGAR PARBHANI BID PUNE Alibag CRAIGARH ARABIAN SEA DHARASHIV LATUR SATARA SOLAPUR RATNAGIRI SANGL KARNATAKA KOLHAPUR SINDHUDURG Kudal ANDHRA PRADESH www.punediary.com Maharashtra State 22 22 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd#23Vital Stats of Maharashtra ▪ Third largest state of India in terms of area and second largest in terms of population ■ Richest state in India contributing to 15% of industrial output and 13.5% of GDP ■ Maharashtra is India's leading industrial state Economy of Maharashtra is based on Agricultural & Allied activities as well as Industrial activities Major industries are Chemical and allied products, Electrical and Non- Electrical machinery, Textiles & Petroleum and allied products State Maharashtra Area (sq.km) 3,08,000 Population 1069 Lacs Literacy 77% Per Capita Income of Urban HH Rs 79,515 No. of Districts 35 Source: Wikipedia & Maharashtra gov. sites Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd 23 23#24Current Readership Penetration - Maharashtra 1 Maharashtra Base Population 1069 Lacs Literacy 77% Can Read Marathi Any Marathi Daily 635 Lacs 184 Lacs Penetration Gap Average GDP Growth (since 03-04) 71% 14.5% Market Potential Value 13.5% (% of India) Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation Source: IRS 10 Q 3 24 24 DB Corp Ltd#25Discussions 25 25 Dainik Bhaskar Divya Bhaskar बिज़नेस भास्कर DNA dbactivation DB Corp Ltd