Saregama India Limited · NSE:SAREGAMA
Saregama India — Investor Presentation (October 2021)
39 slides from Saregama India's investor presentation, October 2021
Slide 1: Saregama Corporate Presentation Oct'2021
SAREGAMA CORPORATE PRESENTATION Oct’2021
Slide 2: QA wird
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Slide 3: Disclaimer
Disclaimer This presentation (“Presentation”) does not constitute a prospectus, offering memorandum or an offer, or a solicitation of any offer, to purchase or sell any securities. This presentation is for informational purposes only and is not a solicitation of any bid from any investor. Nothing in
Slide 4: Overview
OVERVIEW
Slide 5: Journey
Journey First ever recorded Indian song of Gauhar Jaan in 1902 RPG Group acquired TV Serial production Started investing in included in our library the company started ‘ Carvaan ’ launched non film music 1902 1946 1986 2000 2001 2016 2017 2017 2020 Company incorporated as Started investing in new Fi
Slide 6: Saregama at a glance
Saregama INDIA’S ONLY Entertainment Company into MUSIC LICENSING DIGITAL as well as FILMS RETAIL PHYSICAL Music Films & TV Licensing Retail Television Serials Films & Web Series India’s Largest Music IP # Distribution network # Content IP rights of # Content IP rights of # 130k+ 30k+ 6k+ 62 Songs Re
Slide 7: 130000+ Songs - Largest Indian Music Library
Largest Indian Music Library 130000+ Songs* # Covering multiple Indian languages and genres HINDI BENGALI TAMIL MARATHI 38900+ 26600+ 11800+ 6300+ TELUGU MALAYALAM PUNJABI KANNADA 8100+ 7000+ 8400+ 3100+ DEVOTIONAL CLASSICAL Ghazals Folk 18300+ 8400+ 1200+ 4700+ * As on 30th September’2021 # Intelle
Slide 8: Industry
Group INDUSTRY
Slide 9: Globally Music is on a Growth Trajectory
Globally Music in on a Growth Trajectory
Slide 10: Streaming is the Growth Driver
Streaming is the Growth Driver The quality of the music business has improved dramatically due to consumer adoption of streaming • Reduced upfront investment and associated risk • Distribution and customer-acquisition costs now funded by major tech companies • Predictable recurring revenue streams •
Slide 11: Indian Media & Entertainment Sector is growing rapidly
Indian Media & Entertainment Sector is growing rapidly • Media & Entertainment sector to grow 18.7% in 2022 to (INR Bn) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023P FY 2025P CAGR 2022-25 reach INR 1280 Bn and then to grow at a CAGR of 11.7% to reach INR 1784 Bn by 2025. Print 308 299 188 239 253 274 4.7
Slide 12: Music Industry
Music Industry • Indian Music industry remains at INR 31 Bn in 2022 and is expected to grow at a CAGR of 16.5% to cross INR 49 Bn by 2025. • The growth in India has come on the back of digital consumption led by smartphone popularity and low data tariffs Indian Music Industry Size (INR Bn) • The suc
Slide 13: High Entry Barrier in Music
High Entry Barrier in Music Invest Once, Dividends for next 60+ years Advantages of Scale Sound Recording Publishing Rights Rights • Lower Cost to Market a Song India 60 yrs Life of Author+60 yrs • Higher Monetisation per Song USA 70 yrs Life of Author+70 yrs • Top 3 (Universal, Sony, Warner) UK 70
Slide 14: Returns from Music keep Growing
Returns from Music keep Growing Annual Growth in OTT (Music Apps) Streams for Saregama owned Songs classified by Decade of Release FY17 FY18 FY19 FY20 Upto 1960 88% 66% 27% 37% 1961 to 1970 105% 65% 25% 46% 1971 to 1980 96% 71% 34% 49% 1981 to 1990 111% 80% 30% 41% 1991 to 2000 97% 111% 48% 53% 2001
Slide 15: Saregama
th SAREGAMA
Slide 16: Investment Highlights / Our Strengths
Investment Highlights / Our Strengths India’s only entertainment company with IP offerings across media channels (music, film, television and print), delivery platforms (physical and digital) and business models (licensing and retail) Large intellectual property portfolio of 130K+ songs, 62 films an
Slide 17: Growing Music Licensing Revenue
Saregama Music Licensing Revenue (INR Mn) * Growing FY21 FY20 2,361 * 2,839 Licensing Revenue FY19 FY18 1,478 1,949 FY17 1,388 * One time income of INR 155 Mn (FY21) and INR 21 Mn (FY20) are excluded On account of A. Growing customer interest in Retro Music B. Saregama’s Focus on New Music C. Presen
Slide 18: Our Music Licensing Partners
Our Music Licensing Partners Music Streaming Partners Broadcasting Partners Video Streaming Partners Spotify Wynk Music Star Kamdehenu Tv Netflix Gaana Hungama Sony Odisha Tv Prime Video Jio Saavn Resso Zee New Era Disney+ Hotstar YouTube Music Itunes Music Viacom 18 Sankara Amazon Music v + Many mo
Slide 19: Making Money from Music
Making Money from Music A. MUSIC STREAMING APPS (OTT) B. SOCIAL MEDIA PLATFORMS (incl. Video sharing Apps) Saregama Music is licensed to multiple Global Platforms Saregama has 26 channels on YouTube with a cumulative • Saregama licenses its music to various OTT platforms for subscriber base of over
Slide 20: Making Money from Music
Making Money from Music C. VIDEO STREAMING PLATFORMS D. BROADCASTING PLATFORMS – TV CHANNELS, BRANDS With the rising popularity of video streaming in India, • Saregama Licenses its music to Television Channels for use in platforms like Netflix, Disney+ Hotstar, Amazon, MX various TV serials, reality
Slide 21: Music Retailing: Directly through Carvaan
Music Retailing : Directly through Carvaan Brand Attributes Convenience 35+ of Use Segment Targeted at the 35+ generation, who value Convenience over Control for their audio listening experience The Product • Blend of digital technology and a retro form Premium Nostalgia factor. • Available in multi
Slide 22: Music Retailing: Carvaan Product to Platform
Music Retailing : Directly through Carvaan Product to Platform Over 2.5M units sold as of 30th September’21 Saregama plans to now evolve the brand from a standalone Product to a Platform offering all kinds of daily updatable audio content to 35+ people living in India and abroad advantage of convert
Slide 23: Yoodlee Films
Yoodlee Films • Yoodlee Films is Saregama’s production house focussed on creating content for 3rd party digital platforms • Saregama issues period-based licenses for its movies to these platforms for a fixed-fee. In some cases, it also 16 Movies licenses the same movie to TVoD platforms and TV chann
Slide 24: TV Serials
TV Serials TAMIL TV SERIALS • Saregama is leading TV series content producer for Southern The revenue stream is through sale of channels. In the past, it also produced shows for Hindi GECs, but due to IP ownership, it decided to focus on business where the company commercial time (advertising slot).
Slide 25: Leadership
Leadership Vikram Mehra Kumar Ajit Managing Director Sr. Vice President, Music Retail (Associated with the Company since Oct’2014) (Associated with the Company Since June’2016) Vineet Garg Siddharth Anand Kumar Chief Financial Officer Vice President, Films and Series (Associated with the Company May
Slide 26: Strategy
STRATEGY
Slide 27: Strategic Overview
Strategic Overview To be a Pure Play Content Company capitalising on the global content consumption boom driven by the ever-increasing Digitisation Through licensing to EVERY 3rd party Digital (music, video, social) and TV platform. Monetisation of Existing IP Carvaan transitioning from being a Prod
Slide 28: Saregama wants to take Market Leadership position in Indian Music
Saregama wants to take Market Leadership position in Indian Music Disproportionate Strategic Acquisitions + + share of to help New Content Plug the Content Artiste Management across Hindi & Gaps of last 25 years Regional Languages and strengthen our new content play Catalogue Strength
Slide 29: Disproportionate Share of New Music Content
Disproportionate Share of New Music Content Film Music Non-Film Music Hindi Hindi Punjabi Tamil Bhojpuri Telugu Gujarati Malayalam Haryanvi Bengali 65% Spends 35% Spends
Slide 30: New Music Content Acquisition Process
New Music Content Acquisition Process The Music IP will be built through new film music acquisition across Hindi, Tamil and Telugu with a clear strategy to start slowly, vet assumptions and build up the slate over a period of time The company is additionally creating non-film music in Hindi, Bhojpur
Slide 31: Released on 9th June'21 - streaming milestones
Released on 9th June’21 • 579M+ YouTube Views* as of 13th Oct’21 • 1.6 Bn+ YouTube UGC Views* as of 10th Oct’21 • 159M+ OTT streams* • 1.3M Instagram Reels* as of 13th Oct’21 • #1 across streaming platforms and YouTube for 3 weeks * As on 10th October’2021 31
Slide 32: Artiste Management
Artiste Management Artiste Discovery Artiste Buildup Artiste Monetisation • Singer . • Music . • Content Creation • Composer • Marketing • Events & Shows • Influencer • Brands In-House Or Joint Venture
Slide 33: Financials
FINANCIALS
Slide 34: Financial Charts (Consolidated)
Financial Charts (Consolidated) Revenue from Operations Music Licensing Revenue OIBCID (INR Mn) OIBCID Margin (%) (Turnover) (INR Mn) (INR Mn) 33% 1,451 * 2,839 5,447 5,215 * 2,361 4,420 1,949 786 763 15% 14% FY19 FY20 FY21 FY19 FY20 FY21 FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 * One time income of INR
Slide 35: Financial Charts (Consolidated)
Financial Charts (Consolidated) Return on Capital Employed Debt to Equity Ratio Return on Equity (ROE) (%)* (ROCE) (%)* 23.9% 33.3% 0.28 45.6% 16.4% 31.3% 24.5% 0.03 - FY19 FY20 FY21 FY 19 FY 20 FY 21 FY19 FY20 FY21 * ROE = PAT / Shareholders Equity * ROCE = EBIT / (Shareholders Equity + Debt) * As
Slide 36: OIBCID to PAT
OIBCID to PAT Particulars (INR Mn) H1 FY22 H1FY21 FY21 FY20 FY19 Revenue from Operations (A) 2,500 1,846 4,420 5,215 5,447 Total Expenses (B) 1,544 1,242 2,969 4,452 4,661* OIBCID (C= A-B) 956 604 1,451 763 786 OIBCID Margin (%) 38% 33% 33% 15% 14% Content Charge (D) 182 59 179 176 99 Depreciation (
Slide 37: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equity and Liabilities (INR Mn) FY21 FY20 FY19 Assets (INR Mn) FY21 FY19 FY19 Shareholders Fund Non Current Fixed Assets (a) Property, Plant and Equipment 2,046 2,053 2,057 (a) Equity Share Capital 174 174 174 (b) Right to use assets 11 5 - (b) Other Equity 4,88
Slide 38: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (INR Mn) FY21 FY20 FY19 Pre-Tax Profit 1,519 603 847 Change in other operating activities ( including non-cash Items) (176) 25 -163 Change in Working capital 692 388 -916 Taxes Paid (139) (221) -126 Net cash generated from/(used in) Operating Activities (
Slide 39: Thank You
THANK YOU
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