Saregama India Limited · NSE:SAREGAMA
Saregama India — Investor Presentation (January 2019)
40 slides from Saregama India's investor presentation, January 2019
Slide 1: Saregama India Limited Investor Presentation January 2019
SAREGAMA INDIA LIMITED INVESTOR PRESENTATION | January 2019
Slide 2: Snapshot
Snapshot India’s oldest music label and High Dividend Yield and a Zero Strong and professional youngest film production house Debt Company management team with experienced stalwarts from the entertainment industry Owning Intellectual Property (IP) India’s first song was recorded in Digital licensing
Slide 3: Strategic Overview
Strategic Overview Saregama’s long term strategy : To be a Pure Play Content Company capitalising on the global data boom Saregama’s long term strategy is to be a pure play content company capitalising on the data boom globally Diversified monetisation Higher monetisation of Existing of Existing IP
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: Company Overview
Company Overview • Saregama India Ltd. (Saregama), an RP Sanjiv Goenka Group Company, is India's oldest music Consolidated Revenues label, youngest film studio and a multi-language TV content producer. (INR Mn) 3,566 • Over the years, the Company has expanded its business from analogue audio to publ
Slide 6: The Saregama Heritage
The Saregama Heritage • Saregama, the erstwhile HMV India, has been in the entertainment • In 1946, it was incorporated as a Private Limited company with the name business for 114 years and was initially established as a branch of of ‘The Gramophone Co. (India) Limited’ Electrical & Musical Industri
Slide 7: Management Team
Management Team Board of Directors Mr. Bhaskar Mr. Noshir Naval Mr. Arindam Sarkar Mr. Umang Kanoria Mr. Santanu Mrs. Preeti Goenka Raychaudhuri Framjee Mrs. Avarna Jain Mr. Sanjiv Goenka Bhattacharya Group Chairman Non-Executive and Non-Executive and Additional Non- Non-Executive Director Non-Execu
Slide 8: Awards & Accolades
Awards & Accolades WAARC Innovation Awards In Beaune film fest IPRCCA 2017 Special Award for Category Best use of PR by a Brand - Innovation and Silver for Won in fresh blood Silver Effective Innovation competition Brand Equity Marketing In IFFLA - Special Awards 2018 IndIAA Awards 2018 mention ‘Inn
Slide 9: Financial Summary - Consolidated
Financial Summary - Consolidated Particulars (INR Mn) FY16 FY17 FY18 Y-o-Y Revenues • Music 1,322 1,442 2,968 106% • TV & Films 847 669 529* -21% • Publication 48 74 68 -8% Total Revenue 2,217 2,185 3,565 63% EBITDA without SAR Provision 170 221 542 145% PBT without SAR Provision 111 153 467 205% PB
Slide 10: Business Overview
| eee [a] Fel BUSINESS OVERVIEW
Slide 11: Business Verticals
Business Verticals Saregama is the pioneer of 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 television, radio, digital, telecom, etc. Business Verticals Music Se
Slide 12: Music Segment
MUSIC SEGMENT
Slide 13: Music Industry
Music Industry • Indian Music industry was estimated at INR 14.4 Bn in FY18, having grown at a Indian Music Industry size CAGR of 14.3% between FY14 and FY18 (KPMG) (INR Bn) • The growth in India has come on the back of digital consumption led by smartphone popularity. Contrary to the popular belief
Slide 14: Piracy
Piracy • Piracy continues to be one of the major issues affecting the Indian film & Music industry with annual loss of revenues to around INR 180 Bn. • Pirated content continues to be the most popular source of music. Indians visited websites providing unlicensed music 9 Bn times in 2017, according
Slide 15: Saregama Music IP
Saregama Music IP • Saregama is the oldest music label in India, with the largest library of songs under its bouquet. A typical movie Music Revenue (INR Mn) has 5 songs. Assuming a music label acquires 1000 movies in an year, it will get 5,000 songs. By comparison Saregama owns 120,000 songs, each d
Slide 16: Film Music IP…best of 20th Century
Film Music IP…best of 20th Century Iconic Late 90s & Early 200s Iconic 90s Iconic 80s Iconic 70s Iconic 60s Iconic 50s 16
Slide 17: Biggest IP collection – Films, Classical & Devotional
Biggest IP collection – Films, Classical & Devotional And many more… 4,400+ 150+ tracks with list of Music from 7,800+ audio-videos 1,800+ all the Ragas in 19,900+ Largest shot on Ghazals classical music 700+ Devotional collection of legendary from renowned Maestros songs across Rabindra artists art
Slide 18: Diversified Music Monetising Platforms
Diversified Music Monetising Platforms Saregama’s Music Intellectual Property Physical (handled directly by Company) Carvaan Carvaan Mini Music Cards Publishing Digital Societies Digital TV Channels (handled through PPL : Public Performance of Sounds OTT Radio 3rd party Licensing) recordings YouTube
Slide 19: Music IP Monetisation - Carvaan
Music IP Monetisation - Carvaan • The Company launched a breakthrough product called ‘Carvaan’, which is a portable digital music Units Sold (‘000s) 297 player with inbuilt stereo speakers and preloaded music. 229 • Carvaan has multiple variants across languages (Hindi, Tamil, Bengali, Marathi) and
Slide 20: Variants of Carvaan
Variants of Carvaan • Songs in Carvaan have been selected through data analytics and 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
Slide 21: Music IP Monetisation: Digital Licensing
Music IP Monetisation: Digital Licensing The company’s evergreen catalogue remains the preferred choice for digital Number of OTT Streams (Mn) platforms, brand advertisements and general entertainment TV channels. OTT 1003 1045 872 • Saregama licenses its music to various OTT platforms for online st
Slide 22: Music IP Creation: Process
Music IP Creation: Process • The Music IP will be built through new film music acquisition across Hindi, Tamil and Marathi with a clear strategy to start slowly, vet assumptions and start building up the slate over time • The company is additionally creating fresh content for classical and devotiona
Slide 23: Music IP Creation: Last 18 months
Music IP Creation: Last 18 months 23
Slide 24: TV & Films Segment
TV & FILMS SEGMENT
Slide 25: Film Industry
Film Industry Online Video Audience in India will double by 2020 (Mn) • 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) platforms. • The global OTT players are making
Slide 26: 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 Straight to Digital audience segment of 18 to 35 years. • Yoodlee films, as a brand, will be seen as a serious p
Slide 27: Video IP Creation & Monetisation: TV Serials
Video IP Creation & Monetisation: TV Serials Saregama continues its leadership in Tamil (Sun Network) in the after noon prime time with highest TRP. • Saregama is the leading TV content producer for Southern The revenue stream is through advertising slot sales. The channels. In the past it also prod
Slide 28: Publications
PUBLICATIONS
Slide 29: Publications Segment
Publications Segment • The Publications segment includes the publication of Open Magazine, a weekly current affairs and features magazine through a 100% owned subsidiary. • Open Magazine was launched on 2nd April 2009, and was originally available in 12 Indian cities. • Written and edited for the so
Slide 30: Future Outlook
FUTURE OUTLOOK
Slide 31: Outlook
OUTLOOK Music Inspite of fall in Telecom revenues, Saregama’s overall Music Sales of Carvaan and its variants will continue growing. B2B revenues will grow at 17-18% yoy The potential market sizing over next few years is 25M Digital Physical B2B This growth will be primarily led by OTT platforms B2C
Slide 32: Financial Overview
FINANCIAL OVERVIEW
Slide 33: Standalone Income Statement
Standalone Income Statement Particulars (INR Mn) FY16 FY17 FY18 H1-FY19 Revenue from Operations 2,148 2,081 3,456 2497 Other Income 99 159 142 454 Total Revenue 2,247 2,240 3,598 2951 Total Expenses 1,997 2,003 3,115 2580 EBITDA 250 237 483 420 EBITDA Margin (%) 11.13% 10.58% 13.42% 16.86% Depreciat
Slide 34: Standalone Balance Sheet
Standalone Balance Sheet Equity and Liabilities (INR Assets (INR Mn) FY17 FY18 H1-FY19 FY17 FY18 H1-FY19 Mn) Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 174 174 174 (a) Property, Plant and 1,893 1,881 2058 3,236 3,647 3662 Equipment (b) Other Equity (b) Investment Properties
Slide 35: Consolidated Income Statement
Consolidated Income Statement Particulars (INR Mn) FY16 FY17 FY18 Revenue from Operations 2,217 2,185 3,566 Other Income 122 133 102 Total Revenue 2,339 2,318 3,668 Total Expenses 2,073 2,091 3,203 EBITDA 266 227 465 EBITDA Margin (%) 11.37% 9.79% 12.68% Depreciation 54 44 42 Finance Cost 5 24 34 PB
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Equity and Liabilities (INR Mn) FY17 FY18 Assets (INR Mn) FY17 FY18 Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 174 174 (a) Property, Plant and Equipment 1,897 1,884 (b) Other Equity 3,223 3,643 (b) Investment Properties 25 24 Net worth 3,397 3,817
Slide 37: Financial Charts (Consolidated)
Financial Charts (Consolidated) Total Revenue (INR Mn) EBITDA and EBITDA Margin (%) PAT and PAT Margin (%) 12.68% 11.37% 7.72% 9.79% 3.71% 2.95% 2,339 2,318 3,668 266 227 465 69 86 283 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 EBITDA EBITDA Margin (%) PAT PAT Margin (%) Diluted EPS Net Debt to Eq
Slide 38: Capital Market Data
Capital Market Data 230% 180% 130% 80% 30% -20%Jul-17 Aug-17 Sep-17 Oct-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Saregama Sensex Shareholding Pattern as on 30th June 2018 Price Data (As of 30th June, 2018) INR Face Value 10 Market Price 679.35 Others 39.18 52 Week H/L 953.55
Slide 39: 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 40: Thank You
eA THANK YOU
Saregama India — Investor Presentation (January 2019) on 6ix