iifl investor conf presentation - 17th feb, 2011.ppt investor conf...leading in each market •...
TRANSCRIPT
February 2011
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Around 17.5 MN readers in India’s fastest growing markets
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M lti l St t
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,Jh kh d J & K h i & D lhiJharkhand, Jammu & Kashmir & Delhi
• Launching Maharashtra & Bihar shortly
Multiple Languages
• Hindi, Gujarati, English
• 26% Urban population of India resides in Bhaskar Markets (excluding Delhi & Mumbai)
• 26 % of India’s total consumption based on Market Potential Value (MPV) is concentrated in Bhaskar Markets
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LEADING IN EACH MARKET• Madhya Pradesh (MP) – Dominating the market with a market share of more than 3 times over nearest
competitor.
• Chattisgarh – 10% lead over nearest competitor.
• Rajasthan – Maintaining, Sustaining and Increasing lead to 35% over nearest competitor in Jaipur . Besides, we are ahead in Urban Readership of Rajasthan with nearest Competitor.
• Chandigarh, Punjab, Haryana (CPH) – A lead of 15% over nearest competitor in overall CPH with a lead of 92% in Chandigarh
• Gujarat – Formidable Player with lead in key markets; with a lead of 18% over nearest competitor in Ahmedabad.
Figs in ‘000s
50% of advertising in the regions, originates from, & is targeted at, these top cities
Source: Readership data as per IRS 10 Q3
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Identify Profitable markets Successful Performance
High growth markets with low print penetrationAbility to justify
DB Corp’s proven market entry strategy has redefined category norms and broke barriers across languages & geography, time and again.
Ability to justifyRevenue
Profit
The potential in print consumption that
Jaipur – Dec 1996 - No.1 from the day of launch
Chandigarh / Haryana – May / June 2000 - No.1 from the day of launch
pcan be tapped by our proven approach
Ahmedabad – June 2003 – No.1 from the day of launch
• Amritsar/ Jalandhar – 2006 – No.1 from the day of launch
DBCL has demonstrated success in every market it has entered
Proven ability to operate and launch in different geographies with different languages, different socio economic cultures and
achieve success in each market
DBCL has demonstrated success in every market it has entered
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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 newspaper
• In the pre-launch order booking phase, readers were shown the outline of the newspaper content and design with an agreement to book the newspaper before the launchbefore the launch
• The pre-launch order booking provided us a confirmed circulation of 452 Thousand Copies from the very first day, thus making Divya Bhaskar the No. 1 newspaper from the first day of its launch, toppling the 80 year old competitor
• Project completed in 189 Days as a record from the day of ground breakingcenter
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28 States 7 Union Territories
INDIA
6 METROS (ENG. Play)
Less: 7 NE States(Non Focused Markets)
Less: 6 Union Territories(Non Focused Markets)
Remaining: (Major) 1 U.T.ChandigarhRemaining: Major 21States
Delhi, Mumbai, Chennai Hyderabad, Kolkata,
Bangalore
Hindi Bengali Oriya Marathi Gujarati Southern
DB Corp Andhra Pradesh
DB Corp
Madhya Pradesh
1 State 1 State 2 States
Target Expansion DB Corp Andhra Pradesh
Tamil Nadu
Kerala
Karnataka
ChattisgarhRajasthanHaryana PunjabHimachal Pradesh UttarakhandJharkhand
DB Corp
Target Expansion
Jharkhand Jammu & Kashmir Uttar PradeshBihar DB Corp Target Expansion
Source: Indian Govt Web site
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• 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, 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 2011census 2011
• The major growth is happening in small and midsized towns.
Lit R t P h i P & biti i i Ti II d III iti• Literacy Rate , Purchasing Power & ambitions are growing in Tier II and III cities,
hence, language media is still to grow.
Source:Goldman Sachs
Source : Goldman Sachs
REGIONAL MARKETS• Tier II & III cities are catalysts of growth in India Regional• 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
*Tier I : Population > 4 Mn
Tier II : 1 Mn < Population <4 Mn
Tier III : Population < 1 Mn
Source: IRS Q3 2010
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Source: IRS Q3 ‘10
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 42 b 2009 R 103 b 2003 12 P i 2009 7 2 P iSource: FICCI KPMG Report2003 : Rs 42 bn 2009 : Rs 103 bn 2003 : 12x Premium 2009 : 7.2x Premium
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BMW dealer in Jaipur sold 30 cars in 3 months
115 Mercedes booked in a day in Aurangabad
Punjab - 1400 Mercedes cars, 450 in Ludhiana
Coimbatore – Audi, Porsche sold 35 cars in 2009
Surat - 11 Mercedes (27 l - 3 c) sold in a month
0% f hi h d TV ld id50% of high end TVs are sold outside metros
TAG Heuer - 35 units, Rs. 2 lakhs each, in 3 months in Guwahati
Ludhiana 2nd to Delhi for Rs 1 crore+ watchLudhiana 2 to Delhi for Rs 1 crore+ watch
Cochin - fastest growing for small boats and yachts (2008-09)
Source: India Today 7th Jan’10; TeamBHP.com, 8th April’10; Business Today 16th Mar’10; E&Y
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UNIFORMLY DISTRIBUTED EBIDTA FROM OUR DIVERSIFIED MARKETSOur 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 17.5 MN AVERAGE DAILY READERSReadership – IRS 10 Q3
CPH 14%
Gujarat 25%
Rajasthan 35%
MP & Chhattisgarh 26%
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60% of our Ad revenue is from the Retail market / Local market
A client base of around 300 Thousand Retail advertisers fuel our growth as we offer them opportunity to g pp yadvertise with various options as –Specific city, district, town, region, stateThis kind of reach cannot be offered effectively through any other medium.
Multi language
Cross Selling
Premium for colour supplements
Yield improvement
MAXIMIZE OUR AD-REVENUES
Multi-languageDivya Bhaskar + Dainik Bhaskar +DNA
Multiple geographiesFrom Gujarat to Chattisgarh
Multiple Media
Premium for colour supplementsPremium for dominant markets
Multiple Media Print +Radio+ Magazines+Internet
Gaining larger wallet share and maximizing revenuesGaining larger wallet share and maximizing revenues
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• Launched in 2006, now operates from 17 stations in 7 states
• The only Radio Company to have achieved EBIDTA positive within a short
span of 2.5 years only.
• EBIDTA has increased by Rs 25 MN as on 31st December’10 on YOY• EBIDTA has increased by Rs. 25 MN as on 31 December 10 on YOY
Basis.
• Advt. revenue growth of 37% - Qtr 3 December’ 2010 on YOY Basis.
• Strong Competitive advantage because of knowledge of consumers & advertisers, in these markets
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Revenue Growth(INR MN)
Growth in Advertising Revenue(INR MN)
Revenue Breakdown Q3 FY 2011 Revenue Growth Drivers
Circulation 15.5%
Other 3.8% Upward revision of ad rates at national and local level
High focus on Retail Advertisers driving growth
Over all Economic Conditions are positive
Advertising 80.7%
Over all Economic Conditions are positive, resulting in improved advt market sentiments
Further consolidation in existing markets and expansion into new territories
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EBITDA Growth(INR MN)
PAT Growth(Net Margins in INR MN)
EBIDTA Margins PAT Margins (Net Margins)
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Return on Capital Employed (ROCE) Return on Net Worth (RONW)
Debt to Equity Debt to EBIDTA
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Newsprint Cost to Total Cost Personnel Cost to Total Cost
Other Operating Cost to Total Cost Gross Fixed Assets (INR MN)Other Operating Cost to Total Cost Gross Fixed Assets (INR MN)
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Gross Debt (INR MN) Net Debt (INR MN)
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Chairman - 42 years of experienceServed as Chairman of FICCI of the MP region
Ramesh Chandra Agarwal
Managing Director of DBCL25 years of experience in the publishing and newspaper business
Sudhir Agarwal
17 years of experience. Won the E&Y ‘Young Entrepreneur of the Year 2006 ’ Awarddistinction of being the youngest chairman of Indian Newspaper Society for MP region
Girish Agarwaal
11 years of experience in the publishing business Heads entire Production, IT and Technology for DBCL
Pawan Agarwal
Managing Director at Warburg Pincus India Private Ltd Niten Malhan
Heads the Piramal Group in IndiaAjay Piramal*
Executive Chairman of Ogilvy & Mather Pvt Limited, IndiaPiyush Pandey*
Previously the Chairman & Executive Director at Central Bank of India and Chairman & Managing Director of Vijaya Bank
Kailash Chandra Chowdhary*
Vice-President of BIR Brussels, the International Authority in Non- Ferrous Metals Ashwani Kumar Singhal*
A member of the planning group sub-committee of the Union Planning Commission of IndiaHarish Bijoor*
* denotes Independent Directors.
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