Saregama India Limited · NSE:SAREGAMA
Saregama India — Investor Presentation (June 2020)
43 slides from Saregama India's investor presentation, June 2020
Slide 1: Saregama India Limited Corporate Presentation June 2020
SAREGAMA INDIA LIMITED CORPORATE PRESENTATION | JUNE 2020
Slide 2: Snapshot
Snapshot India’s oldest music label and youngest film production house Producing digital thematic films Consistent Dividend Yield and targeted at the youth segment. 12 Low Debt Company movies released on Netflix / Disney Hotstar in 3 yrs Leading producer in terms of Strong management team with numbe
Slide 3: Strategic Overview
Strategic Overview Rising Rising Falling Rising Individual Falling Smartphone SmartphoneOwnership Ownership Data Prices based Content Piracy 450-500M 450-500M > Rs3/GB Consumption Content Consumption through Legal means Going Up Indians spent 30% of their phone 325M people viewed videos online in Av
Slide 4: Strategic Overview
Strategic Overview Saregama’s Saregama’s long term strategy : Tostrategy long term be a Pure is toPlay be aContent Company pure play content capitalising on the global company capitalising data on the driven data boomentertainment globally boom Higher monetisation of Existing IP to fund IP Creation
Slide 5: Last 3 years Track Record
Last 3 years Track Record Total Income (INR Mn) PAT (INR Mn) and PAT Margin (%) ROCE* (%) 9% 9% 6,011 8% 543 8% 23.9% 8% 5327 435 7% 3,668 6% 283 16.4% 5% 14.3% 4% 3% 2% FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 *Capital Employed = share capital security premium & free reserves 5
Slide 6: Company Overview
COMPANY OVERVIEW
Slide 7: Company Overview
Company Overview • Saregama India Ltd., an RP Sanjiv Goenka Group Company, is India's oldest music label, youngest film studio and a multi-language TV content producer. Over the years, the Company has expanded its Revenue from Operations business from audio to home video, publishing, digital, events
Slide 8: The Saregama Heritage
The Saregama Heritage • Saregama, the erstwhile HMV India, • In 1946, it was incorporated as a Private Limited company with the has been in the entertainment name of ‘The Gramophone Co. (India) Limited’ business for 115 years and was initially established as a branch of Electrical & Musical Industri
Slide 9: Management Team
Management Team BOARD OF DIRECTORS Dr Sanjiv Goenka Preeti Goenka Arindam Sarkar Umang Kanoria Santanu Bhattacharya Noshir Naval Framjee Avarna Jain Group Chairman Non-Executive Director Non-Executive and Non-Executive and Non-Executive and Non-Executive Non-Executive Director Independent Director I
Slide 10: Awards & Accolades
Awards & Accolades IndIAA Awards 2018 Spikes Awards 2018 Marquees 2018 The Perfect Gift Tangrams Effectiveness Reimagining for the Better HAMID KD AJJI UK Asian Film Festival Apac Effies WAARC Innovation Advertising Club’s National Awards Best Director: Madhumita Beaune film festival Awards Effies I
Slide 11: Financial Summary – Consolidated
Financial Summary – Consolidated Particulars (INR Mn) FY 19-20 FY 18-19 Y-o-Y Growth FY 17-18 Revenues from Operations • Music 4444 4,897 -9% 2,968 • TV & Films 702 476 48% 529 • Publication 69 74 -7% 68 Revenue from Operations Total 5215 5,447 -4% 3,566 PBT 603 847 -29% 389 PAT 435 543 -20% 283 Rev
Slide 12: Business Overview
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Slide 13: Business Verticals
Business Verticals Saregama is a pioneer in the Indian music industry and has evolved into a premier diversified content player with Intellectual Property rights of songs, TV serials, movies having presence across platforms like digital. television, radio, telecom, etc. FY20 Revenue Share Business V
Slide 14: Music Segment
MUSIC SEGMENT
Slide 15: Music Industry
Music Industry • Indian Music industry grew 8.3% to reach INR 15.3 Billion in 2019 and Indian Music Industry Size (INR Bn) is expected to grow at a CAGR of 10% to cross INR 20 Billion by 2022. (EY FICCI report, 2019) 20 17 • The growth in India has come on the back of digital consumption led by 15 1
Slide 16: Piracy
Piracy • Piracy continues to be one of the major issues affecting the Indian film & Music industry Piracy rates across global 10 countries with an annual loss of revenues to around INR 180 Bn. Italy 35% Poland 40% • Pirated content continues to be the most popular source of music. Indians visited we
Slide 17: Saregama Music IP
Saregama Music IP • Saregama is the oldest music label in India, with the largest 30% of songs (count and usage) library of songs under its bouquet. A typical movie has 5 belong to 21st century songs. Assuming a music label acquires 1000 movies in a year, it will get 5,000 songs. By comparison, Sare
Slide 18: Film Music IP…best of Indian Music
Film Music IP…best of Indian Music Last few years ….... Late 90s & Early 2000s ….... 90s ..….. 80s ..….. 70s ..….. 50s & 60s ….... 18
Slide 19: Biggest IP collection – Films, Classical & Devotional
Biggest IP collection – Films, Classical & Devotional S.P. Balasubrahmanyam Mukesh 3,136 TRACKS 1,659 TRACKS Asha Bhonsle Jagjit Singh 6,851 508 TRACKS TRACKS Mohd. Rafi Lata Mangeshkar 5,061 TRACKS Kishore Kumar Ameen Sayani 5,676 TRACKS 2,798 TRACKS 694 TRACKS And many more… Music from 150+ 1,800+
Slide 20: Diversified Music Monetising Platforms
Diversified Music Monetising Platforms Digital Publishing Societies DIGITAL Audio OTT TV Channels PPL Social Media Video OTT Public Performance of Sound (handled through 3rd recordings YouTube Radio party licensing) Telecom Brand Advertisements IPRS Digital Content Underlying works for all media In-
Slide 21: Music IP Monetisation: Digital Licensing
Music IP Monetisation: Digital Licensing Number of OTT Streams (Mn) The company’s evergreen catalogue remains the preferred choice for digital platforms, brand advertisements and general entertainment TV channels. 1,777 1,573 1,639 1,447 1,390 OTT 1,076 • Saregama licenses its music to various OTT p
Slide 22: Music IP Creation: Process
Music IP Creation: Process 6. 1. Lip sync vas How many background streams can In-film vs be promotional monetised 5. Music CRITERIA 2. (audio & FOR Track record video) SELECTION of Singers & production OF MUSIC Actors quality 3. 4. Kind of Marketing songs strength of (romantic, Producer sad, sufi, c
Slide 23: Music IP Creation: Last 36 months
Music IP Creation: Last 36 months 23
Slide 24: Music IP Monetisation - Carvaan
Music IP Monetisation - Carvaan • The Company launched a breakthrough product called ‘Carvaan’, which is a portable digital music player with inbuilt stereo speakers and preloaded music • Carvaan has multiple variants across languages (Hindi, Tamil, Bengali, Marathi) and price points (Mini, Base, Pr
Slide 25: Variants of Carvaan
Variants of Carvaan • Songs in Carvaan have been selected through data analytics and classified based on singers, lyricists, music composers, actors, moods etc. • With a simple turn of the knob, one can switch between Kishore Kumar classics, to R.D Burman’s pulsating hits, to timeless love songs or
Slide 26: Carvaan – going forward
Carvaan – going forward Brand attributes Convenience 35+ segment Nostalgia Premium of Use India’s most differentiated and Widening it appeal in terms of the offering and premium music brand consumer segments Carvaan, Carvaan, the Product the Platform Means to Sell our own Music Functionality to enab
Slide 27: TV & Films Segment
TV & FILMS SEGMENT
Slide 28: Film Industry
Film Industry • The films business has witnessed growth courtesy expansion of overseas markets, increase in regional content and a rise in acquisitions of the digital content by Over The Top (OTT) Online Video Viewers to continue platforms. growth trajectory (Mn) 488 430 • The global OTT players are
Slide 29: Video IP Creation & Monetisation: Yoodlee Films
Video IP Creation & Monetisation: Yoodlee Films • Yoodlee Films is Saregama’s production house with a focus on thematic films in all languages, with controlled budgets and a nucleus on an audience segment of 18 to 35 years. • Yoodlee films, as a brand, will be seen as a serious player that will help
Slide 30: Video IP Creation & Monetisation: TV Serials
Video IP Creation & Monetisation: TV Serials The revenue stream is through advertising slot sales. The Company also monetises these serials on digital platforms like Youtube Saregama continues its leadership in Tamil TV serials (Sun Network) in the afternoon prime time with the highest TRP. • Sarega
Slide 31: Publications
PUBLICATIONS
Slide 32: Publications Segment
Publications Segment • The Publications segment includes the Open Magazine, a weekly current affairs and features magazine, operated through a 100% owned subsidiary. • Open Magazine was launched in April 2009, as a print-only weekly available in select Indian cities. It has now also rolled out a dig
Slide 33: Future Outlook
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Slide 34: Outlook
Outlook Music Digital B2B • Factoring in the Covid-19 related hiccups, we believe that Saregama’s overall B2B revenues will grow between 15-20% in FY 21 This will be driven by growth in OTT platforms and Publishing • Growth in video OTT consumption will enhance revenue opportunities for music licens
Slide 35: Financial Overview
FINANCIAL OVERVIEW
Slide 36: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY20 FY19 FY18 Revenue from Operations 5215 5447 3,566 Other Income # 112 564 102 Total Revenue 5327 6,011 3,668 Total Expenses 4610 5,065 3,203 EBITDA 717 946 465 EBITDA Margin (%) 14% 17% 13% Depreciation 47 33 42 Finance Cost 67 66 34
Slide 37: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equity and Liabilities (INR Mn) FY20 FY19 FY18 Assets (INR Mn) FY20 FY19 FY18 Shareholders Fund Non Current Fixed Assets (a) Property, Plant and Equipment 2053 2,057 1,884 (a) Equity Share Capital 174 174 174 (b) Right to use assets 5 (b) Other Equity 3814 4,107
Slide 38: Historical Standalone Income Statement
Historical Standalone Income Statement Particulars (INR Mn) FY20 FY19 FY18 Revenue from Operations 5001 5,244 3,456 Other Income# 115 595 142 Total Revenue 5116 5,839 3,598 Total Expenses 4347 4,921 3,115 EBITDA 769 918 483 EBITDA Margin (%) 15% 16% 14% Depreciation 44 30 38 Finance Cost 67 66 34 PB
Slide 39: Standalone Balance Sheet
Standalone Balance Sheet Equity and Liabilities FY20 FY19 FY18 Assets (INR Mn) FY20 FY19 FY18 (INR Mn) Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 174 174 174 (a) Property, Plant and Equipment 2052 2056 1,881 (b) Other Equity 3964 4087 3,647 (b) Right of use Asset 4 Net worth
Slide 40: Financial Charts (Consolidated)
Financial Charts (Consolidated) Total Revenue (INR Mn) PAT and PAT Margin (%) 600 8% 9% 10% 500 8% 8% 400 300 6% 200 4% 100 283 543 435 3,668 6,011 5,327 - 2% FY18 FY19 FY20 FY18 FY19 FY20 PAT PAT Margin (%) Diluted EPS (INR) ROCE%* 23.9% 16.4% 14.3% 16.2 31.2 25.3 FY18 FY19 FY20 FY18 FY19 FY20 *Cap
Slide 41: Capital Market Data
Capital Market Data 20% 10% 0% -10% -20% -30% Saregama -40% Sensex -50% -60% -70% -80% Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Shareholding Pattern as on 31st March, 2020 Price Data (As of 31st March, 2020) INR Face Value 10.0 Others Market Price 196.3 31.
Slide 42: Disclaimer
Disclaimer Saregama India Ltd. Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in al
Slide 43: Thank You
THANK YOU