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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