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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE VALUES – Trendsetting | Result-oriented | Analytical | Connected July 2018 TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO- ECONOMIC CHANGE

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Page 1: TO BE THE LARGEST AND MOST ADMIRED …...TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE • Hindi Print has been growing at 8.76% CAGR over

TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE VALUES – Trendsetting | Result-oriented | Analytical | Connected

July 2018

TO BE THE LARGEST AND MOST ADMIRED

LANGUAGE MEDIA BRAND ENABLING SOCIO-

ECONOMIC CHANGE

Page 2: TO BE THE LARGEST AND MOST ADMIRED …...TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE • Hindi Print has been growing at 8.76% CAGR over

TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

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

and markets in which it operates.

These forward-looking statements include, without limitation, statements

relating to revenues and earnings.

These statements are not guarantees of future performance and are subject

to risks, uncertainties and other factors, some of which are beyond the

control of the Company and are difficult to predict. Consequently, actual

results could differ materially from those expressed or forecast in the

forward-looking statements as a result of, among other factors, changes in

economic and market conditions, changes in the regulatory environment

and other business and operational risks. DB Corp Ltd. does not undertake

to update these forward-looking statements to reflect events or

circumstances that may arise after publication.

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

• Hindi Print has been growing at 8.76% CAGR over last 10 years

• Overall Print has been growing at 4.87% CAGR over last 10 years

2006 2016 Increase CAGR%

Overall Print Circulation 3.91 Cr. 6.28 Cr. 2.37 Cr. 4.87

Hindi Print Circulation 1.06 Cr. 2.45 Cr. 1.39 Cr. 8.76

No. of publishing Centre's 659 910 251 3.28

Source: Audit Bureau of Circulation Press Release dated 8th May 2017

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

Source: Audit Bureau of Circulation Press Release dated 8th May 2017

Language CAGR %

Hindi 8.76

Telugu 8.28

Kannada 6.40

Tamil 5.51

Malayalam 4.11

English 2.87

Punjabi 1.53

Marathi 1.50

Bengali 1.49

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Page 5: TO BE THE LARGEST AND MOST ADMIRED …...TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE • Hindi Print has been growing at 8.76% CAGR over

TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

Read in Last 1

Month ALL INDIA URBAN RURAL

2014 2017 2014 2017 2014 2017

Dailies 31% 39% 47% 53% 22% 31%

Readers in Crore 29.5 40.7@ 15.2 19.3 14.3 21.4

+11 Cr +4 Cr +7 Cr

Source: MRUC Website - http://mruc.net/uploads/posts/a27e6e912eedeab9ef944cc3315fba15.pdf

@ = includes readers for which mastheads were not fielded (smaller titles)

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Page 6: TO BE THE LARGEST AND MOST ADMIRED …...TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE • Hindi Print has been growing at 8.76% CAGR over

TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

Dainik

Bhaskar

Group

12.6 Mn.

Readers

The

Times

of India

Group

11.9 Mn.

Readers

Dainik

Jagran

Group

11.2 Mn.

Readers

IRS 2017 - AIR – URBAN | Excluding Financial Dailies

Dainik Bhaskar Group : Dainik Bhaskar | Divya Bhaskar | Divya Marathi | Saurashtra Samachar

The Times of India Group: The Times of India | Vijaya Karnataka | Navbharat Times | Maharashtra Times | Ei Samay | Mumbai Mirror | Bangalore Mirror

Dainik Jagran Group : Dainik Jagran | Nai Dunia | Nav Dunia | Mid-day Gujarati | Mid-day English | Inquilab | Punjabi Jagran

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Page 7: TO BE THE LARGEST AND MOST ADMIRED …...TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE • Hindi Print has been growing at 8.76% CAGR over

TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

Madhya Pradesh Dominant

Chhattisgarh Dominant

Haryana Dominant

Chandigarh Dominant

Rajasthan

Dominant in Jaipur

At par in overall Rajasthan now

Investing to attain overall leadership

Gujarat Leader in Ahmedabad

Close No.2 overall

Bihar

Started investing last year

Now Close No.2

Further investing in copies for overall leadership

Punjab No.2

Currently, now routine growth

Maharashtra Limited to Central Maharashtra

Currently not expanding

Jharkhand No.2

Currently not expanding

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Page 8: TO BE THE LARGEST AND MOST ADMIRED …...TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE • Hindi Print has been growing at 8.76% CAGR over

TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

Looking at future opportunities, DB Corp has been investing in markets of Rajasthan, Gujarat and Bihar, to attain clear leadership.

Also investing in Other markets to further strengthen dominance with high quality product and stronger readership.

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

Striving Dominance in 7 markets of DB Corp

Current Dominant Markets

- Madhya Pradesh

- Chhattisgarh

- Haryana

- Chandigarh

Targeted to be Dominant

in more 3 Markets

- Gujarat

- Rajasthan

- Bihar

• Adding 3 more new dominant markets, will result in improvement in

market share in volume and rate.

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

1. Kendra Mein Pathak

2. Knowledge Content to enrich the reader

3. Idea based Journalism

4. Differentiator

5. Content strategy + innovative reader

engagement initiatives

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

1. NNR : National News Room –

• We have a dedicated robust structure which churns out national-international News of the Day after thoroughly passing through Knowledge sieve.

• So that our Readers get most important items in Easy to read, Easy to understand format. With relevant knowledge.

• Clear and a new angle providing Headlines are discussed and delivered by NNR - they give Talking Points in the big news.

• NNR produces valued-packed Business, Sports, Desh-Videsh and the back page of the paper.

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

2. NINR : National Ideation News Room –

• Works centrally for Ideas. It brings out all Special and Different pages

and sections of Dainik Bhaskar.

• Main focus is to provide Knowledge content most relevant to the

Reader.

• Like the Sunday Jacket - now in it's 7th year. Yet so refreshing. Consists

Special reports. Investigation. Research-based stories. Interesting

content making rich Sunday reading.

• Also works on our goal of making Bhaskar reader a Global Citizen.

• Through exclusive tie-ups with world’s greatest titles like: Time

magazine, The New York Times, The Economist, Harvard Business

Review (HBR)

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Page 13: TO BE THE LARGEST AND MOST ADMIRED …...TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE • Hindi Print has been growing at 8.76% CAGR over

TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

• Launched in 2006, 94.3 MY FM operates from 30 stations in 7 states

• 94.3 MY FM continues to be no.1. in markets of Madhya Pradesh, Chhattisgarh

and Rajasthan and largest network in Chandigarh, Punjab and Haryana.

• Consolidating presence in line with strategy to be market leader in

“Unmetro” geographies with strong DBCL presence.

• With the 13 New frequencies acquired, during the Phase III Radio auctions,

94.3 MY FM to be:

o Biggest player in Rest of Maharashtra with 10 frequencies including Nagpur

o Biggest player in Chandigarh / Haryana/ Punjab with 4 frequencies

o Biggest Player in Rajasthan with 6 frequencies

o Strengthened Gujarat with presence in Rajkot

• Phase 3 stations turn profitable on the back of growing popularity and

prudent cost controlling initiatives.

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

FY 2012 FY 2014 FY 2016 FY 2018

555

801

1076

1358

Revenue (Rs. In mn)

FY 2012 FY 2014 FY 2016 FY 2018

124

318

400 362

EBIDTA (Rs. In mn)

22% 40%

37% 27%

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

Presently digital market has two types of traffic:

• Social

• Brand / Search

Company focus: 1. How to drive Social traffic?

2. How to drive Brand / Search traffic?

as needs for both are different

Accordingly we are focusing on Dainik Bhaskar & Divya Bhaskar - content

team being build up separately to drive traffic – as we continue to be

number 1 in Hindi and Gujarati segment

Brand / Search

• traffic comes from App and Web

• Build up a separate team on the lines of DB Corp brand experience

• In future, also focusing on major app downloads

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

Over the last 3 years

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

Particulars FY 16

(Rs.)

FY 17

(Rs.)

YoY

Growth

(%)

FY 18

(Rs.)

YoY

Growth

(%)

Advertising Income 14812 15973 7.8% 16425 2.8%

Circulation Revenue 4356 4814 10.5% 5145 6.9%

==> PO Copies (in lacs) 52.15 52.28 0.2% 55.20 5.6%

==> Avg Cover Price

(Rs. per copy) 3.65 3.96 8.7% 4.08 3.0%

Total Income 20735 22750 9.7% 23522 3.4%

(Rs. million)

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

Particulars FY 16

(Rs.)

FY 17

(Rs.)

YoY

Growth

(%)

FY 18

(Rs.)

YoY

Growth

(%)

Newsprint Cost 6186 6609 6.8% 7307 10.6%

==> Newsprint Rate per MT 33470 34989 4.5% 36159 3.3%

==> Newsprint Qty (in MT) 184833 188880 2.2% 202091 7.0%

(Rs. million)

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

(Rs. million)

Particulars FY 16

(Rs.)

FY 17

(Rs.)

YoY

Growth

(%)

FY 18

(Rs.)

YoY

Growth

(%)

Personnel Cost 3909 4258 8.9% 4364 2.5%

Admin, Selling & Other Exp 2680 2851 6.4% 3357* 17.7%

Other Operating

Expenditure 2369 2440 3.0% 2619* 7.3%

Total 8958 9549 6.6% 10340 8.3%

* Increase on account of circulation expansion drive in legacy markets of Rajasthan, Gujarat and

Madhya Pradesh and new market of Bihar.

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

(Rs. million)

Particulars FY 16

(Rs.)

FY 17

(Rs.)

FY 18

(Rs.)

EBIDTA 5590 6592 5875

EBIDTA Margin 27% 29% 25%

Net Profit 2921 3748 3240

Net Profit Margin 14.1% 16.5% 13.8%

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

(Rs. million)

Particulars FY 16

(Rs.)

FY 17

(Rs.)

FY 18

(Rs.)

Net Worth 13945 15930 19291

Secured Long Term Gross Loan 536 262 -

Cash & Bank Balance 926 1754 3223

Working Capital Loan 631 288 301

Net Block (Fixed) 9128 8833 9634

ROCE 29.9% 33.1% 24.3%

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE

• The Board of Directors at its meeting held on May 26, 2018 approved the

proposal of buyback of 92,00,000 equity shares of Rs. 10/- each

(representing approximately 5% of total equity share capital) from the

shareholders of the company through the “Tender offer” route as

prescribed under the Securities and Exchange Board of India (Buyback of

Securities) Regulations at a price of Rs. 340/- per equity

share, aggregating to approximately Rs 312.80 Crores.

• The buyback has been approved by the shareholders on July 6, 2018. The

public announcement was published on July 10, 2018. The draft letter of

offer was filed with SEBI on July 17, 2018.

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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE VALUES – Trendsetting | Result-oriented | Analytical | Connected