Tips Music Limited · NSE:TIPSMUSIC
Tips Music — Tips Industries — Q1 FY2022 Earnings Presentation
24 slides from Tips Music's earnings presentation, Jul 28, 2021
Slide 1: Submission of Presentation of Analysts/Investors Meeting
July 28, 2021 To, To, Listing Department Listing Department BSE Limited National Stock Exchange of India Limited P.J Towers, Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Fort, Mumbai – 400 001 Bandra Kurla Complex, Bandra (E), Mumbai – 400 050 Scrip Code: 532375 Symbol: TIPSINDLTD
Slide 2: Investor Presentation July 2021
Tips Industries Limited Investor Presentation July 2021
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Tips Industries Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or in
Slide 4: Music Industry
Music Industry… 15 billion 23 billion In 2023 # 19 # 14 India’s rank in the India’s rank in the In 2020 global music market global digital revenues ✔According to YouTube, musicians owned the majority of videos that have achieved more than 1 billion lifetime views and/or have made it to the top 10 +1
Slide 5: ...is bound to grow
…is bound to grow 4Bn new connected consumer devices to be added Strong growth in India’s digital userbase with 90% of new users to have vernacular affinity and Tier-2/3/rural shoppers to be by 2025 globally over 1.6x of Metro/Tier-1 shoppers by 2023 Devices in Billion Users in Millions 2.0 1,050 82
Slide 6: Global Music Subscription Update
Global Music Subscription Update On Demand Audio streaming in the US was up ~17% y-o-y. Proportion of Streaming doubled in last 8 years & ~60% 76 Mn Music services subscribers v/s have premium subscriptions USA 74 Mn subscribers of Netflix Netherlands Music revenue grew by ~50% in 2019 and streaming
Slide 7: Music is the most valuable content
Music is the most valuable content Ranking on repeated monetization Music is now an internet business *20% Content that can be 2% Music monetized multiple times naturally commands 11% 2020 greater economic value Films 68% Web Series Internet Sync Performance *Physical Rights Music ranks at the top o
Slide 8: Digital Advertising – Key Driver of Indian Music Industry
Digital Advertising – Key Driver of Indian Music Industry Indian Digital Ad Industry AD spends on Digital Media by formats & verticals INR Crs Social Media Paid Search Display Banners Other incl. Classified Online Video +22% 23,673 23% 26% 24% 27% 18,938 32% 34% 31% 34% 45% 0% 1% 15,782 9% 0% 3% 1%
Slide 9: Ecosystem Supporting Growth
Ecosystem Supporting Growth Convenience Smart Phone Listeners no longer need to carry Only 450mn smartphone connections in India so far. separate devices; smartphone apps Increasing smartphone penetration in urban as well as make music available 24x7 with a tap rural India will lead to high data con
Slide 10: Company Overview
Company Overview Established in 1988, Tips Industries is one of the large corporate houses in the field of music and films Catalogue is licensed to Collection of Consistent success in creating and acquiring • OTT platforms high quality music I.P.R. over 29,000 songs • Content Aggregators • TV Channe
Slide 11: Corporate Philosophy
Corporate Philosophy Our Vision To maintain and grow a MUST HAVE HITS catalogue Our Mission To create, acquire and deliver quality music to a wide range of audiences Our Purpose Deliver Entertainment Our Core Values •Honesty •Commitment •Teamwork •Passion •Positive attitude 10
Slide 12: ...generating multiple revenue streams
…generating multiple revenue streams Large and diversified music library Rich content can be leveraged to generate multiple Our catalogue comprises film, non-film, pop, annuity revenue streams via following remixes devotional songs and bhajans, created by some of the leading artistes and musicians o
Slide 13: Two Pronged Content Acquisition Strategy
Two Pronged Content Acquisition Strategy Our endeavour to add right content for larger target audience Content Cost Produce Strategy 100% of Content cost is charged off to profit & loss account in the year of release, thus no • To introduce promising singers (TIPS) is Capitalization & no write-offs
Slide 14: Growing listenership & Increasing Content Addition
Growing listenership & Increasing Content Addition New Songs Added Evergreen & Rich content of 61 over 29,000 songs New releases 215 across genres, languages & in Q1FY22 decades giving us high 100 visibility of music revenue FY20 FY21 Existing Content + Continuous Additions : Increasing Music Revenu
Slide 15: Financial Highlights
@ug Financial Highlights
Slide 16: Segmental Performance - Music
Segmental Performance - Music Revenue (Rs. in Crs) EBIT (Rs. in Crs) EBIT Margins (%) +88% +91% 28.1 22.8 79.5% 80.9% Y-o-Y 15.0 11.9 Q1FY21 Q1FY22 Q1FY21 Q1FY22 Q1FY21 Q1FY22 Revenue (Rs. in Crs) EBIT (Rs. in Crs) EBIT Margins (%) +2% -8% 27.6 28.1 24.9 89.9% 22.8 80.9% Q-o-Q Q4FY21 Q1FY22 Q4FY21 Q
Slide 17: Q1FY22 Profit & Loss Statement
Q1FY22 Profit & Loss Statement Particulars (Rs. in Crs) Q1 FY22 Q1 FY21 Y-o-Y Q4 FY21 Q-o-Q FY21 Revenue From Operations 28.1 15.0 87.3% 27.6 1.8% 90.5 Other Income 1.0 0.7 2.9 4.9 Total Income 29.1 15.6 30.5 95.4 Cost of Production / Distribution of Expenses 0.0 0.0 0.0 0.0 Employee Benefits Expens
Slide 18: Consolidated Historical Profit & Loss Statement
Consolidated Historical Profit & Loss Statement Particulars (Rs. in Crs) FY21 FY20 FY19 FY18 Revenue From Operations 90.5 91.0 203.2 47.5 Other Income 4.9 17.8 4.5 2.4 Total Income 95.4 108.8 207.7 49.9 Cost of Production / Distribution of Expenses 0.0 28.7 162.2 17.5 Employee Benefits Expenses 8.1
Slide 19: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. in Crs) Mar-21 Mar-20 Mar-19 Mar-18 Particulars (Rs. in Crs) Mar-21 Mar-20 Mar-19 Mar-18 ASSETS Equity Non-Current Assets Equity Share Capital 13.0 14.3 14.3 14.3 Property, plant and equipment 2.0 1.8 2.1 1.8 Other Equity 88.3 66.1 56.4 55.4 Investment Pro
Slide 20: Abridged Consolidated Cash Flow Statement
Abridged Consolidated Cash Flow Statement Particulars(Rs. in Crs) Mar-21 Mar-20 Mar-19 Mar-18 Net Profit Before Tax 59.2 14.4 7.3 4.0 Adjustment for Non-Operating Items -0.5 14.4 1.9 8.1 Operating Profit/(Loss) Before Working Capital Changes 58.7 28.7 9.2 12.1 Adjustment for WC -4.6 5.6 19.2 30.9 Ca
Slide 21: Key Ratios
Key Ratios Cash Flow from Operations (Rs. in Crs) Net Cash Company (Rs. in Crs) Cash & Cash Equivalents Borrowings 43.3 41.2 51.5 30.5 25.0 31.9 18.7 8.0 9.4 2.0 1.9 0.0 Mar-18 Mar-19 Mar-20 Mar-21 Mar-18 Mar-19 Mar-20 Mar-21 ROCE (%) ROE (%) 87.4% 42.9% 26.2% 14.1% 13.2% 14.9% 4.5% 4.0% Mar-18 Mar-
Slide 22: Music Industry today
Music Industry today Music Monetization: Rising adoption of Investments in Music: subscription: Digital Piracy: • Music labels own IPR for their repertoire • FICCI–EY Media & Entertainment Report • Technology has disrupted piracy the • Music labels acquire music rights for for 60 years as per the Co
Slide 23: Music Industry Business Model
Music Industry 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
Slide 24: Thank You
Company Details: Tips Industries Limited Thank CIN: L92120MH1996PLC099359 Email id: investorrelations@tips.in You Investor Relations Orientcapital Advisors: (a division of Link Intime India Pvt Ltd) Ms. Payal Dave: +91 9819916314 payal.dave@linkintime.co.in Ms. Neha Shroff: +91 7738073466 neha.shrof