Ht Media Limited · NSE:HTMEDIA
Ht Media — Investor Presentation (May 2009)
44 slides from Ht Media's investor presentation, May 2009
Slide 1: Investor Presentation
Investor Presentation May 2009
Slide 2: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increa
Slide 3: Ad intensity is poised to increase as consumption grows
Ad intensity is poised to increase as consumption grows India – Adex/ consumption vs. consumption per capita 0.7% • With increasing 0.6% Consumption growth consumption, India should outstripping ADEX witness an increase in 0.5% growth Adex as witnessed in other 1998-99 developing countries 0.4% Pess
Slide 4: India is close to the inflexion point; Russia and China has shown a similar trend
India is close to the inflexion point; Russia and China has shown a similar trend Russia: Rapid increase in ADEX with China: Strong ramp up in ADEX economic recovery post 1999 growth with income level changes 1999-2006 DATA 1983-2006 DATA 1.80% 1.20% Adex as % of private consumption Adex as % of pri
Slide 5: Advertisement pie is set to increase manifold across mediums
Advertisement pie is set to increase manifold across mediums Segments where HT is present 2007 Ad revenues 2013 Ad revenues Per cent Per cent Total revenue = ~19,000 Cr Total revenue = ~56,000 Cr New media to increase shares Source: FICCI 2008, Euromonitor, Literature searches; Analyst reports, inte
Slide 6: HTML has transformed itself to a diversified multimedia company in order to tap a large value pool
HTML has transformed itself to a diversified multimedia company in order to tap a large value pool Today HTML is established Transformation journey in following domains 2007 English daily Launched Print Hindi daily Mint Business daily Magazines 2006 Entry into Job portal radio Digital
Slide 7: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increa
Slide 8: Hindustan Times is the second largest English daily with strong presence in North India
Hindustan Times is the second largest English daily with strong presence in North India Regions Covered Heritage and trustworthy brand Highly respected Editorial talent & systems Received various awards in last 12 Chandigarh months Delhi Asia Media Award – Bronze 3 Plants get 100% rating f
Slide 9: While HT Continues to dominate Delhi Market…
While HT Continues to dominate Delhi Market… 15- 25 age group readership Strong Readership & Circulation 60 50 initiatives to retain & lead market shares 40 48 51 45 to continue 30 20 40 New targets & locations (Youths & 10 upcoming NCR) 0 Jul '07 Oct '07 Mar '08 Oct '08 HT City re-launch – ta
Slide 10: HT Mumbai is gaining market share steadily
HT Mumbai is gaining market share steadily 80 Our strategy 75 72 Continue to lead expansion of 69 66 readership with a steady 65 60 59 63 60 57 58 circulation; reducing wastage 59 56 55 54 53 57 52 52 55 54 51 52 50 50 50 50 51 53 49 49% Times of India Target markets of Youth & 47 50 50 45 49
Slide 11: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increa
Slide 12: Hindustan is the third largest Hindi daily with dominant presence in large markets
Hindustan is the third largest Hindi daily with dominant presence in large markets Delhi Regions Covered 1.NBT Readership Largest 2.Hindustan Punjab 1.Amar Ujala UP (in million) Market 1.Jagran 2.Jagran 2.Amar Ujala Bihar Dainik Jagran 16.1 UP 3.Hindustan Chandigarh 1.Hindustan 2.Jagran Dainik B has
Slide 13: Overall, Hindi represents second largest Ad pie across newspapers
Overall, Hindi represents second largest Ad pie across newspapers Media Industry Print Ad revenue Magzine 15% Others 10% Print 49% TV 41% Dailies 85% 2008-09 Projected (Rs million) UP / Uttaranchal 5,000 Madhya Pradesh 2,500 Hindi Ad revenue Market Others Rajasthan 3,000 27% Punjab 2,000 Delhi NCR 2
Slide 14: Hindustan – gaining position year on year
Hindustan – gaining position year on year Highlights Ranking Leading Hindi daily with readership in excess of 8 million; No. 3 all over India 04 05 06 07 08 First ever All – Colour Hindi newspaper 1 1 1 1 1 Received various awards in last 12 2 2 2 2 2 months 3 3 3 3 3 Asia Media Award – Silv
Slide 15: Superior product has helped us succeed in new markets against established competition
Superior product has helped us succeed in new markets against established competition Kanpur case study City Circulation 120 Kanpur had been hometown of strongest 100 competitor - Dainik Jagran 80 Our strategy 60 In depth reader research to arrive at 40 offering; launch significantly 20 superi
Slide 16: Hindustan: well positioned for rapid growth
Hindustan: well positioned for rapid growth Strengths & Opportunity Outcome Heritage / Trustworthy brand Continues to grow very strongly in all markets Superior quality across Hindi newspapers Leadership attained in Lucknow, Jharkhand Highly respected Editorial talent ……Mrs.Mrinal Pande
Slide 17: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increa
Slide 18: Mint: strong reader proposition & gaining revenue traction
Mint: strong reader proposition & gaining revenue traction Mint ET Readers proposition is strong and Time spent on reading (Minutes) differentiated; supported by a distinct and 33 35 well segmented readership base 27 27 World class editorial by domain experts with global experience Delhi Mumbai
Slide 19: Mint – Clear no. 2 in circulation
Mint – Clear no. 2 Circulation in ‘000 396 110 69 38 Eco Times Mint Business Std Hindu Bus. Line Mint has highest RPC of 1.3 as compared to 1.1 of competition Source: ABC Jan- June 08 & IRS R2, 2008 for Delhi NCR, Mumbai & Bangalore, 19
Slide 20: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increa
Slide 21: FEVER – A High Impact Radio Station
FEVER – A High Impact Radio Station Differentiated positioning: Less Talk More Music….Format radio station Targeted at SEC AB, between 25-34 years of age Collaboration with Virgin enabling operational excellence A leadership team of global radio experts with a track record of successful radi
Slide 22: Fever is the fastest growing station in H2 2008
Fever is the fastest growing station in H2 2008 H2 2007 H2 2008 -19% 10% 57 52 -10% 47 47 43 -13% 37% 39 63% 35 44% 31 30 28 27 22 20 16 1 6 Big Mirchi Red City One Fever Meow Others Ad volume in lacs seconds, without house ads Source: AirCheck 22
Slide 23: Traction building up across the stations of launch for Fever..
Traction building up across the stations of launch for Fever.. Market Share in Delhi – FY 08 Focused approach in Delhi has yielded results Maintaining number 2 position in Delhi (largest Ad market for Radio industry) Building up loyal listenership base steadily across other stations of launch
Slide 24: Became No. 1 in Mumbai
Became No. 1 in Mumbai Wk 18 Wk 13-18 avg 19.2 16.0 16.0 15.2 14.6 14.5 Share % 12.9 12.4 10.9 10.0 6.5 6.3 2.4 2.6 Fever Red Mirchi Big City One Meow Fever Red Mirchi Big City One Meow Source: RAM – All people 12+, data for week ending 14th May ’09 Mumbai 24
Slide 25: Acquiring No. 1 position in Bangalore
Acquiring No. 1 position in Bangalore Wk 18 Wk 13-18 avg 21.0 19.7 19.3 15.6 16.1 13.3 Share % 11.4 9.4 9.4 10.1 7.8 6.9 2.1 2.6 Fever Big Mirchi One City S FM Indigo Big Mirchi Fever One City S FM Indigo Source: RAM – All people 12+, data for week ending 14th May ’09 25
Slide 26: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increa
Slide 27: Internet is imperative to the business for leveraging synergies
Internet is imperative to the business for leveraging synergies Business landscape fast changing 1. It leverages the existing print / classifieds relationships Healthy on-going growth in Print, but slowly new media 2. Includes jobs, matrimonial, real estate, auto and general classifieds opportun
Slide 28: Internet: strong foundation for growing portfolio
Internet: strong foundation for growing portfolio Ranked amongst Ten best news websites in the world by Forbes.com in 2007 Ranked #1 in Technology by PC World India Web Awards in 2007 and 2008 In order to give more focus to Internet, a separate Rapidly growing page views – 25 million page vi
Slide 29: Plan to tap huge value pool through classifieds portals
Plan to tap huge value pool through classifieds portals Market size Rs. Crore 3,300 Entered online job market in June 08 with a differentiated offering – shine Shine - journey so far… Over 2.2 million profiles 2,100 15+ million page views and 2 million unique visitors per month 83% databas
Slide 30: Online Jobs – Shine.com
Online Jobs – Shine.com *Alexa Rankings ** comScore Reports Both are International Internet traffic rating companies recognized by various agencies 30
Slide 31: Shine is the most comprehensive job portal in India
High Shine is the most comprehensive job portal in India Low Feature Shine Naukri Monster Timesjobs Job & Candidate Matching Capability Invisibility & Anonymity Recruitment Workflow Management Robustness of registration process Salary Survey functionality Communities Database Size Source: Competitio
Slide 32: Business model of Shine
Business model of Shine Revenue Corporates Placement Consultants Individuals 9Branding 9Hosted Solutions Career 9Hosted Solutions 9Job Postings Services 9Job Postings 9Database Access 9Database Access Extensive Sales Support Corporate Retail 150+ People 8 Locations 32
Slide 33: Foray into mobile marketing and advertising with comprehensive set of services across mobile platform
Foray into mobile marketing and advertising with comprehensive set of services across mobile platform Mobile Marketing Activities: The use of the mobile channel for brand- building activities that raise awareness of a brand in mobile consumers minds Mobile On-pack Mobile Blogging/ Location Based / U
Slide 34: Joint Venture with Velti, a global provider of mobile marketing services
Joint Venture with Velti, a global provider of mobile marketing services, to provide an integrated offering First large media company to enter in mobile marketing 65:35 JV with Velti 1 Planning plc , a company 2 Execution listed in London Stage 3 Reporting Stage Stage Velti plc is a leading gl
Slide 35: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is growing Despite global pressures, consuming class is expected to grow manifold as the fundamentals of Indian economy remains strong Advertising is expected to increa
Slide 36: Attractive long term financial model
Attractive long term financial model Rapid revenue growth: FY04-FY09 Revenue CAGR of 26% 1 Steady growth in revenues Exploring new revenue options – Ad for Equity, Events Diversification of revenue base; Hindi continues growth momentum EBITDA margin within range of 15-20%; growing for last 5
Slide 37: Historical Performance – Revenues
Historical Performance – Revenues CAGR - 26% Rs. Crores * FY 04 for 9 months 37
Slide 38: Historical Performance – EBITDA
Historical Performance – EBITDA % of revenues Rs. Crores CAGR - 62% * FY 04 for 9 months 38
Slide 39: Historical Performance – PAT
Historical Performance – PAT % of revenues Rs. Crores CAGR - 26% * FY 04 for 9 months, All PAT figures before extra-ordinary items 39
Slide 40: Historical Performance – Cash flow
Historical Performance – Cash flow Rs. Crores Rs. Crores * FY 04 for 9 months 40
Slide 41: Recent quarter update : Q4 FY 2009
Recent quarter update : Q4 FY 2009 Revenues grows to Rs. 337 Cr; 6% growth with respect to Q4 FY 08; Steady Financial Performance Increase in DAVP contribution despite Hindustan continues its momentum of 30%+ growth headwinds EBITDA margin of 15% despite high newsprint costs, unfavorable for
Slide 42: Headwinds faced in FY 2009 are fading away
Headwinds faced in FY 2009 are fading away Headwinds in FY 2009 Going forward • Rising international newsprint • International newsprint prices are down by costs ~30% • High investment in Hindustan • Hindustan set to grow and double its contribution • Profitability under pressure due to new business
Slide 43: We have built successful partnerships with world class organizations
We have built successful partnerships with world class organizations Business Paper in partnership with Wall Street Journal; exclusive agreement with WSJ to publish Journal-branded news and information in India 2nd largest circulation and 2nd highest readership among business papers within one y
Slide 44: Thank You
Thank You 44