Slide 1: Music… The Rhythm of Life
MUSIC… THE RHYTHM OF LIFE TIPS INDUSTRIES LIMITED Corporate Presentation
Slide 2: Industry Snapshot
eng The Must Have HITS Industry Snapshot
Slide 3: Music Industry Evolution
Music Industry Evolution Every New Wave Of Technology Has Led To Rising Revenues & Profits 1. Origins of Music: 3. The Vinyl Revolution (1948): 5. The Internet Era (1990s-2003): 7. The New Business Model • Music is one of the oldest forms of • Vinyl records facilitated music • Introduced new technol
Slide 4: Music Is The Most Valuable Content
Music Is The Most Valuable Content Global Music Revenue Sources 2.2% 3.2% 9.5% NEWS TV SERIALS WEB SERIES FILMS MUSIC 48.9% CY2023 17.8% Content which can be monetized multiple times naturally commands greater economic value 18.5% Music ranks at the top of the content pyramid when ranked on repeated
Slide 5: Digital Advertising – Key Driver of Indian Music Industry
Digital Advertising – Key Driver of Indian Music Industry Indian Digital Ad Industry The Indian digital advertising industry stood at Rs 40,685 crore by the end of 2023, up from Rs 29,784 crore in the previous year. It is estimated to grow at (₹ Crs) a CAGR of 29%. 62,045 Ongoing enhancements in dig
Slide 6: Digital Advertising will Dominate Media Spending in India for the Next Few Years
Digital Advertising will Dominate Media Spending in India for the Next Few Years Advertising spends on different media Advertising spends across various media (%) - Forecast 55 55 Digital 50 50 2.0% 2.0% 44 45 42 42 0.3% 40 20.0% 40 39 32.0% 37 35 35 34 29 29 30 26 25 25 23 Television 20 21 20 19 17
Slide 7: Music Consumption Trends
Music Consumption Trends Smartphone users & data subscription Paying music OTT subscription Average music listening hours per week (mn) (mn) 1059 7 890 950 640 5 574 538 3 26.7hrs 2 Indians in 16- 2022 2023 2024 2020 2021 2022 2023 44 years age Smartphones Data Subscription 24.4hrs group India Digit
Slide 8: Business Model
Business Model Music Creators Film Producer Music Label Streaming platforms Business Model Music creators include Film producers use these Music labels owns the IPR Streaming platforms licence lyricists, composers, and compositions in films and sell (Intellectual Property Rights) the content and mak
Slide 9: Company Snapshot
eng The Must Have HITS Company Snapshot
Slide 10: The Promoters’ Journey
The Promoters’ Journey Expansion into New Beginnings & Major Shift to Film Electronics Retail (1972) Family Division (1980s) Music Rights (1988) Family Background & • The family started an Transition to Music • In 1981- First division of Initial years of recording • The Higher profitability electron
Slide 11: The Promoters’ Journey
The Promoters’ Journey Venture into Film Technological Disruption The 2020s Production (1993) (Early 2000s) • Began co-producing • The rise of MP3 & Piracy First Major Success Market Leadership CRBT & OTT Platforms • TIPS demerged its film films to learn the craft led to collapse of the (1991-1992)
Slide 12: TIPS at a Glance
TIPS at a Glance KEY FACTS Founded Year 1988 Catalogue comprises of music in over Only listed player to write off Debt free company with 25 languages 100% of content cost in the ₹ 262 cr of cash & available across multiple investments platforms globally quarter of release Website www.tips.in Industr
Slide 13: Optimising Capital Allocation: Consistently rewarding shareholders through Buybacks & Dividends
Optimising Capital Allocation: Consistently rewarding shareholders through Buybacks & Dividends Q1FY25- Dividend (Rs 25.56 Cr) + Buyback for non-promoter shareholders (Rs 46.62 Cr) Total Payout for FY25 Rs 72.18 Cr Reducing Equity Shares* (Crs) 275 262 77 17.31 62 -26% 15.96 56 15.36 14.32 47 40 12.
Slide 14: Sustained Market Share Growth: Revenues Surged 1.8x in Last 2 Years
Sustained Market Share Growth: Revenues Surged 1.8x in Last 2 Years Music Sector* Revenues (₹ Crs) (₹ Crs) 3,700 242 +14% 2,800 +39% 187 2,400 2,200 136 1,900 91 CY21 CY22 CY23 # CY24E# CY26E # FY21 FY22 FY23 FY24 Tips Industries outperformed sectoral growth by 2.8x over the past 4 years *Source: EY
Slide 15: Two Pronged Content Acquisition Strategy
Two Pronged Content Acquisition Strategy PURCHASE CONTENT COST STRATEGY o We purchase music rights from other producers when we see profitable opportunities 100% of content cost is written off from profit & loss account in the quarter of release o Our understanding of music and its creative process
Slide 16: Our Content Powers Global Platforms
Our Content Powers Global Platforms Digital Partners Sync Deals Broadcast Partners 16
Slide 17: Growing listenership & Increasing Content Addition
Growing listenership & Increasing Content Addition Evergreen & Rich content of over 31,000 songs across genres, YouTube Views (in. Bn) languages & decades giving us high visibility of music revenue 193.9 New Songs Added +64% 97 112.7 New releases in Q1FY25 896 59.6 733 26.6 38.5 276 97 FY20 FY21 FY2
Slide 18: Appendix
eng The Must Have HITS Appendix
Slide 19: Summary of Last 4 Years
Summary of Last 4 Years (Crs) 241.6 186.8 135.6 Significant Jump 127.2 in Profits on a YoY basis in FY24 90.5 +66.2% 76.5 64.6 43.5 55.6 62.4 32.7 13.2 FY21 FY22 FY23 FY24 Content Cost Revenue PAT 19
Slide 20: Industry Leading Financial Performance
Industry Leading Financial Performance (₹ Crs) Revenue EBIT & EBIT Margin* 80.5% 63.9% 55.1% 66.8% 242 171 +39% +33% 187 106 136 89 73 91 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 EPS# ROE# 9.9 81% +45% 63% 64% 5.9 48% 5.0 3.3 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Note *Segmental EBIT before allocat
Slide 21: Thank You
Company Details: Investor Relations Advisors: Tips Industries Limited Orient Capital (a division of Link Group) CIN: L92120MH1996PLC099359 investorrelations@tips.in Mr. Nikunj Jain | Ms. Mamta Nehra Email id: investorrelations@tips.in +91 9769060608 | +91 9987903500 Thank You nikunj.jain@linkintime.