Nation Media Group Limited · NSEKE:NMG
Nation Media — FY2009 Earnings Presentation
28 slides from Nation Media's earnings presentation, 2010
Slide 1: NMG Investor Briefing 2009 Results
NMG Investor I t Briefing 2009 Results R l
Slide 2: Agenda
Agenda 2009 Highlights Divisional Updates 2009 Financial i i l Results l FY2010 Outlook Q&A
Slide 3: Highlights
WANA; > y Highlights Media of Africa for Africa
Slide 4: Overview
Overview Overall a challenging year EAM joint venture discontinued Closure of Daily Metro in April Launch of new TV station in Dec 2009: eAfrica Extended coverage for NTV Uganda (80%) Business Daily sponsored Top 100 SMEs survey New press for MCL (US$3.4M) Content re‐vamp for The EastAfrican
Slide 5: Overview
Overview Newspapers In Education (NiE) launch Increased efficiency and driver safety as a result l off outsourcing i to GM High newsprint prices in H1 2009 Reduced advertising volumes I Increased d competition ii Media Legislation
Slide 6: Divisional Updates
AAS ae Divisional Updates Media of Africa for Africa
Slide 7: Nation Newspapers Division
Nation Newspapers Division Advertising Revenue 3% Total Revenue 2% Direct Costs 19% Direct cost affected by high newsprint 8% prices in H1 p Overheads in line with 2008
Slide 8: Nation Broadcasting Division
Nation Broadcasting Division Easy FM remains the #1 English station NTV station re-launch QFM now the 3rd most tuned in station in the country (Steadman Synovate) Easy FM live on the internet (easyfm.co.ke)
Slide 9: Monitor Publications Ltd and K FM
Monitor Publications Ltd Newspaper Revenue 2% K FM Radio Revenues 43% Radio Operating 500% Results
Slide 10: NTV Uganda
NTV Uganda Revenues 85% Operating Results 49% Roll‐out into four new towns: Jinja, Mbale, Masaka & Mbarara Focus on market growth to continue
Slide 11: Mwananchi Communications Ltd
Mwananchi Communications Ltd Total Revenue 3% Circulation Revenue 12% Performance affected by high newsprint costs Advertising volumes reduction due to economic slowdown New press to improve performance in 2010
Slide 12: 2009 Financial Results
AAS ae 2009 Financial Results Media of Africa for Africa
Slide 13: H1 2009 Operating Results
H1 2009 Operating Results 1.3% 3.8 B Cost of Sales 34% 1B 0.3% 2.2 B Profit Before Tax 23.9% 0.6 B
Slide 14: 2009 Key Performance Drivers
2009 Key Performance Drivers Revenue – Economic slowdown – Discontinued JV with EAM – Closure Cl off Daily D il MMetro t – Improved NTV U performance Costs – High newsprint prices in H1 – New investments: Africa Media, Q FM & eAfrica
Slide 15: 2009 Full Year Operating Results
2009 Full Year Operating Results 0.7% 8.2 B Cost of Sales 24% 21B 2.1 3.6% 4.5 B Profit Before Tax 15.3% 1.6 B
Slide 16: Profit and Loss Account (Ksh M)
Profit and Loss Account (Ksh M) 2008 2009 % Change Turnover 8 252 8,252 8 190 8,190 (0 7)% (0.7)% Profit Before Tax 1,910 1,617 (15.3)% Tax Expense (614) (498) 18.9% Profit Attributable to Shareholders 1,298 1,103 (15)% Earnings per Share 9.1 7.7 (15)%
Slide 17: Turnover: 2002 – 2009 (Ksh M)
Turnover: 2002 — 2009 (Ksh M) Turnover 8,252 8,190 8,000 - 7,686 7,000 - 6,339 6,000 5,597 4,866 4,469 4,103 3,000 2,000 1,000 7 T T T T T T T 2002. «2003 «#2004 2005 #2006 2007 #«®\2008 £2009 ul [=] =] to] 1 = 2 2 ra) 1
Slide 18: Pre-tax Profit (Kshs M)
Pre-tax Profit (Kshs M) 2,500 > 2,000 - 1,910 1,602 1,617 1,500 - 1,151 1,011 1,000 = g95 - ' 2004 2005 2006 2007 2008 2009
Slide 19: Dividend Trend (Kshs/share)
Dividend Trend (Kshs/share) Dividend held at previous year’s level
Slide 20: Consolidated Balance Sheet (Ksh M)
Consolidated Balance Sheet (Ksh M) 2008 2009 Capital & Reserves Share Capital 356.5 356.5 Reserves 3,401 3,720 Proposed Dividends 570.4 570.4 Minority Interest (13.1) 67.2 Total Equity 4,315 4,714 Non‐current Liabilities 235.1 89.3 Total Equity & Non‐current liabilities 4,550 4,803 Assets Non‐curren
Slide 21: Condensed Cash Flow Statement (Ksh M)
Condensed Cash Flow Statement (Ksh M) 2008 2009 Net Cash from Operating Activities 910 1,519 Investing Activities (598) (510) Financing Activities (890) (843) Increase/(decrease) /( ) in cash ( (588) ) 166 Opening & Closing Cash Position At start of year 1,915 1,306 A d off year At end 1 306 1,306 1
Slide 22: NMG Share Activities
AAS ae NMG Share Activities Media of Africa for Africa
Slide 23: Bonus Issue
Bonus Issue Increase volume of tradable shares Reward our loyal base of retail investors Boost our share capital Bonus Issue of 1 for 10
Slide 24: Cross Listing
Cross Listing Grow shareholder base Boost visibility in our various markets Part of 50th Anniversary celebrations
Slide 25: Outlook
Media of Africa for Africa
Slide 26: 2010 Outlook
2010 Outlook Y off recovery Year Optimistic p of improved p performance FFocus on content t t improvement i t to t continue Better newsprint prices New Media to grow 50th Anniversary celebration
Slide 27: Nation Media Group Souvenir Issue
*) Nation Media Group SOUVENIR ISSUE
Slide 28: Thank You
Media of Africa for Africa