Nation Media Group Limited · NSEKE:NMG
Nation Media — H1 2008 Earnings Presentation
54 slides from Nation Media's earnings presentation, Oct 29, 2008
Slide 1: Nation Media Group Investor Briefing H1 2008
Nation Media Group Investor Briefing H1 2008
Slide 2: Agenda
Agenda 1. 2008 Highlights 2. June 2008 Results 3. FY08 Outlook 4. Future Plans 5. Q&A
Slide 3: 2008 Highlights
2008 Highlights
Slide 4: Overview
Overview Slow start in Kenya due to post-election crisis Strong start to the year in Uganda and Tanzania New Nation Digital Media Division formed Hourly TV news updates and Morning Show Promising starts from new products: Daily Metro, Business Daily, relaunched Taifa Leo, Daily Monitor and
Slide 5: Product Improvements
Product Improvements Taifa Leo relaunched Jan 2008 Monitor relaunch April 2008
Slide 6: Media Lab
Media Lab First ever Media Lab journalist trainees
Slide 7: International Awards
International Awards 2008 CNN Multichoice African Journalist Awards in Accra, Ghana. Diageo Africa Business Reporting 2008 Award
Slide 8: Nation Moments with Koffi Anan and Adeniji
Nation Moments with Koffi Anan and Adeniji
Slide 9: Martin Luther Salute to Greatness Award
Martin Luther Salute to Greatness Award Recognition of NTV’s positive role in the peace and reconciliation process
Slide 10: Marketing Activities - Print
Marketing Activities - Print Business Daily Top 100 middle Daily Nation Consumer size companies competition promotion
Slide 11: Creating a Positive Corporate Culture
Creating a Positive Corporate Culture Culture icon - Team spirit Staff walk of Customer fire – individual Service change Excellence
Slide 12: Capital Investment
Capital Investment Installation of new colour unit for 2nd CTP installed at Mombasa Monitor printing press road printing press
Slide 13: CSR Activities
CSR Activities ‘NMG 16’ – Media sponsor of children’s secondary Voices conference on May school sponsorship Co-Sponsorship of Dettol Heart Run
Slide 14: June 2008 Results
June 2008 Results
Slide 15: Strong Operating Results
Strong Operating Results Turnover 8% Cost of sales 6% Profit before tax 14%
Slide 16: Sustained Turnover Growth
Sustained Turnover Growth 4,000 3,761 3,492 3,500 3,002 K 3,000 s h 2,640 M 2,500 2,221 2,146 2,000 1,500 2003 2004 2005 2006 2007 2008 16
Slide 17: Profit Before Tax (Half year)
Profit Before Tax (Half year) 800 773 679 700 600 520 K s 500 h 406 417 390 M 400 300 200 100 2003 2004 2005 2006 2007 2008 17
Slide 18: Interim Dividend Per Share (Kshs)
Interim Dividend Per Share (Kshs) Consistent growth Sufficient cash for Capex & Business Development *Adjusted for stock split
Slide 19: Profit & Loss Account
Profit & Loss Account June 2008 June 2007 % Change Kshs million Kshs million Turnover 3,761 3,492 8 Profit Before Tax 773 679 14 Tax Expense (270) (238) (14) Minority Interest 1.4 14.3 (90) Profit Attributable to Shareholders 504 455 11 3.53 3.19 11 Earnings per share (Kshs) 1.50 1.50 Interim Divide
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet June 2008 Dec 2007 Kshs million Kshs million Capital and Reserves Share Capital 357 357 Retained Earnings 3,144 2,855 Proposed Dividends 214 535 Total Equity 3,704 3,736 Non-Current Liabilities 202 267 Minority Interest (89) (88) Non-Current Assets 2,364 2,284 3,502 3,614
Slide 21: Condensed Cashflow Statement
Condensed Cashflow Statement June 2008 June 2007 Dec 2007 Kshs million Kshs million Kshs million Cash generated from operations 994 975 2,131 Net interest 41 31 56 Tax paid (331) (309) (558) Net cash from operating activities 705 698 1,629 Investing activities (217) (216) (390) Financing activities
Slide 22: Nation Newspapers Highlights
Nation Newspapers Highlights Advertising growth driven by increased colour capacity Circulation driven by interest in post election Advertising Revenue 2% activities Full impact of new Operating Profits 14% newspaper titles launched in 2007- Business Daily and Daily Metro Cost saving initiat
Slide 23: Nation Broadcasting Highlights
Nation Broadcasting Highlights More Kenyans are taking it easy easyfm breakfast show is the number 1 English breakfast show for 18-34 year-olds in Urban Areas and LSM 7-12 all areas. 4.3 million people tune in to easy fm each week. Source: Steadman KARF Q2 08
Slide 24: Monitor Publications Highlights
Monitor Publications Highlights MPL a significant contributor to Group operating profit Revenues 20% Double digit growth (36%) in Advertising revenues, gained market Operating profit 40% share Newly set-up Magazines Publishing Division and Monitor relaunch to drive growth in bottom-line
Slide 25: Mwananchi Communications Highlights
Mwananchi Communications Highlights Management restructure Advertising Revenues 75% has yielded significant improvements in the year Circulation revenues 21% Mwananchi relaunch in Operating Profits 72% July Prospects looking good
Slide 26: Africa Correspondents
Africa Correspondents – 17 and Counting… CHINA Argaw Ashine Dominique Patton (Ethiopia) Laeed Zaghlami (Algeria) Badru Mulumba (Southern Sudan) Hamadou Tidiane (Senegal) Abdinoor Mohammed (Somaliland) Abdul Kadir Khalif (Somalia) Esther Tola Juakali Kambale (Benin) (DR CONGO) Adam Lusekelo (Tanzania
Slide 27: Digital Division Projects
Digital Division Projects 1. Re-design of web-sites − Nation, East African, Business Daily 2. Launch of Africa Portal − Nation Africa 3. Introduced reverse bidding
Slide 28: Digital Division Projects
Digital Division Projects 4. Digital copy of Business Daily 5. Introduce mobile Video Alerts 6. Launch of Social Web- site
Slide 29: Daily Nation Website's New Look
Daily Nation Website’s New Look
Slide 30: The EastAfrican Website's New Look
The EastAfrican Website’s New Look
Slide 31: FY08 Outlook
FY08 Outlook
Slide 32: Kenya
Kenya Economy expected to recover gradually. We expect better performance in the second half of the year Newly created Nation Digital Media Division to harness media opportunities in the digital space TV and radio expected to strengthen market positions and Ad revenues. More local programmes
Slide 33: Uganda
AG3 Uganda Newspaper Advertising revenue growth expected to continue K-FM radio advertising revenues expected to grow NTV Uganda expected to fortify its presence in the market and move towards a profit trajectory New Magazines Publishing Division expected to grow
Slide 34: Uganda map/flag placeholder
Slide 33 AG3 uganda map/flag Ann Gitao, 8/17/2008
Slide 35: Tanzania
AG5 Tanzania Ongoing restructuring efforts at Mwananchi expected to yield positive results Product development efforts will lead to increased circulation copies and advertising revenues. Overall- significant improvements on last year anticipated
Slide 36: Tanzania map/flag placeholder
Slide 34 AG5 tz map/flag Ann Gitao, 8/17/2008
Slide 37: New Kid on the Block
NEW KID ON THE BLOCK
Slide 38: Expanding our Radio Offering in Kenya
Expanding our Radio Offering in Kenya We are unveiling a national Swahili radio station this evening Why invest in a Swahili station? − Outside Nairobi, Swahili and vernacular stations command the highest listenership − The biggest revenues are going into Swahili and vernacular radio
Slide 39: The Current Situation
The Current Situation RADIO LISTENERSHIP URBAN AREAS 57 33 30 28 24 23 18 13 13 11 9 CITIZEN KISS FM EASY FM KBC CLASSIC METRO FM INOORO KAMEME CORO FM KBC CAPITAL KISWAHILI FM FM ENGLISH FM BASE: 5,645,993 PAST 7 DAYS RADIO LISTENERS
Slide 40: Our Mission
Our Mission RADIO LISTENERSHIP URBAN AREAS 57 33 30 28 24 23 18 13 13 11 9 CITIZEN KISS FM EASY FM KBC CLASSIC METRO FM INOORO KAMEME CORO FM KBC CAPITAL KISWAHILI FM FM ENGLISH FM BASE: 5,645,993 PAST 7 DAYS RADIO LISTENERS
Slide 41: Our Strategy – Differentiation
Our Strategy – Differentiation
Slide 42: What Advertisers Want
What Advertisers’ Want Target demographics − Ages 25 – 34 − C1C2D Station reach − National Station language − A mix of Swahili & English Source: Steadman Advertisers Perception Study Mar 08
Slide 43: What Listeners Want
What Listeners Want Swahili listeners are switching between stations looking for specific content They want: − Their favourite music – different genres − Impartial news − Lively & engaging presenters − A Swahili station that sounds as ‘cool’ as the English stations Source: Steadman Swahili liste
Slide 44: It begins with the name...
It begins with the name...
Slide 45: We will give both listeners and advertisers what they're thirsty for
We will give both listeners and advertisers what they’re ‘thirsty’ for
Slide 46: Communication Idea
Communication Idea Je, una kiu? Kata kiu na Qfm
Slide 47: Launch billboard
Launch billboard
Slide 48: Individual presenter ads
Kata kiu kila usiku na “Night Nurse” Talia. wrosies ELDORET 96.7 MOMBASA 87.9 NAKURU 103.3 NYERI 90.0 MERU 107.1 REGGAE \ DOKEZI MIDAHALO p MHz win | Ti Si lazima ubadilishebadilishe stesheni ukitafuta ngoma uipendayo. Unapenda style gani? Kata kiu, sikiza QFM, zote ziko ndani! Kata Kiu
Slide 49: Sustenance phase generic ad
Sustenance phase generic ad
Slide 50: Kata kiu from Monday 25th August
Kata kiu from Monday 25th August Nairobi 94.4
Slide 51: Future Plans
Future Plans Expand our television & radio offerings in Kenya and television in Tanzania Explore more opportunities in magazines publishing based on a Pan African model Expand into West Africa Complete African news gathering capability footprint across Africa Expanding media opportunities
Slide 52: NMG Brands
NMG Brands RAHON —— Baturclay
Slide 53: Thank You
Thank You This presentation and our published results are available on our website www.nationmedi.com
Slide 54: Unaudited Group Results for the Six Months to 30th June 2008
2 Nation Media Group Limited UNAUDITED GROUP RESULTS FOR THE SIX MONTHS TO 30TH JUNE 2008 The Directors of Nation Media Group Limited are pleased to announce the unaudited group results for the six months to 30 June 2008 Consolidated Income Statement wae ane GROUP RESULTS for the six months ended 30