Jagran Prakashan Limited · NSE:JAGRAN
Jagran Prakashan — Q2 FY20 Earnings Presentation
38 slides from Jagran Prakashan's earnings presentation, Nov 13, 2019
Slide 1: Exchange intimation letter for investor presentation
TH E W O R LD 'S LA R G EST REA D DA ILY Jagran November 13, 2019 1) Manager-CRD, BSE Ltd., Re: Jagran Prakashan Limited Phiroze Jeejeebhoy Towers, Scrip Code: 532705 Dalal Street, ISIN No.: INE199GQ1027 Mumbai-400001 2) Listing Manager, National Stock Exchange of India Ltd., Re: Jagran Prakashan Li
Slide 2: Jagran Prakashan Limited Q2FY20 Result Presentation
Jagran Prakashan Limited Q2FY20 Result Q1FY17Presentation Result Presentation 1
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Jagran Prakashan Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 4: Management Commentary
Management Commentary Comment from Chairman and Managing Director “Macro environment deteriorated further in Q2 which became still worse because of unprecedented floods in many parts of the country. Steps that could have been taken to mitigate the impact of prolonged slowdown were containing the de-
Slide 5: Key Highlights
Jagran Key io) » ne on ian ne on = ar
Slide 6: JPL: % of Revenue translating to Net Operating Cash Flow
JPL: % of Revenue translating to Net Operating Cash Flow Net Operating 439 425 477 391 285 244 Cashflow 25% 22% 21% 21% 20% Generated cumulative cash flow 17% 17% 17% 15% 16% from operations of ~Rs. 2,000 12% Crores and distributed 10% ~Rs. 1,000 Crores to the Shareholders over the last 5 years FY15
Slide 7: MBL: % of Revenue translating to Net Operating Cash Flow
MBL: % of Revenue translating to Net Operating Cash Flow Net Operating 61 79 40 85 28 Cashflow 29% 27% 26% Generated cumulative cash 21% 19% 20% 19% 21% flow from operations of ~Rs. 15% 300 Crores and distributed 13% Rs. 57 Crores in FY19 which is 2x compared to peer over last five years FY16 FY17 F
Slide 8: Attractive Shareholder Return
Attractive Shareholder Return Distribution* Jagran Peer 1 Peer 2 404.9 378.9 302.3 243.0 182.7 168.5 163.9 139.5 137.8 114.7 107.0 10.3 10.3 10.6 10.6 10.6 10.6 0.0 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 Amongst the Highest in the Industry Jagran Di
Slide 9: Impact of Change in Income Tax Rate
Impact of Change in Income Tax Rate The Company elected to exercise the non-revisable option permitted under section 115 BAA of the Income-tax Act, 1961 as introduced by the Taxation Law (Amendment) Ordinance, 2019 ONE TIME BENEFIT RECURRING BENEFIT • The Company re-measured its Deferred tax Liabili
Slide 10: EPS Accretion on account of Change in Tax Rate
EPS Accretion on account of Change in Tax Rate FY19 Profoma Calculation EPS Accretion +15% As per old tax As per New tax In Rs Crs. 8.4 rate rate 7.3 Effective Tax Rate 35% 25% Profit Before Tax 338 338 Tax Expense 118 85 Profit After Tax 220 253 Cash Profit 295 328 EPS 7.3 8.4 As Per old Rate As pe
Slide 11: Higher Returns due to Prudent Capital Allocation
Higher Returns due to Prudent Capital Allocation Jagran & Peer MBL & Peer RoCE RoCE 38% 38% 26% 31% 22% 29% 26% 27% 19% 18% 24% 24% 9% 9% 8% 7% FY17 FY18 FY19 H1 FY20* FY17 FY18 FY19 H1 FY20* Jagran Prakashan Peer Music Broadcast Peer Focus on Generating superior returns indicating better utilizatio
Slide 12: Business Performance
Jagran Business © © gS ay) S| i & Si D al 4 a
Slide 13: New Generation Business Performance
De-Risked Business Model Operating Revenue Operating Profit Revenue Breakup – Q2 FY20 -12% 6% 247 -14% 217 49 New Generation Business Performance 2% 42 12% H1 FY19 H1 FY20 H1 FY19 H1 FY20 CAGR: +12% CAGR: +22% 80% 509 107 289 40 Print Radio Digital Events & Outdoor FY14 FY19 FY14 FY19 Future ready w
Slide 14: Group USP: Focus on Cash Generation
Group USP: Focus on Cash Generation Print: Profitable Leadership Radio: Prudent Capital Allocation • Better translation of revenue to net operating cashflow then • Acquired MBL at ~33% discount as compared to building peers Radio business from scratch • Phase 3 bidding for geographical reach enablin
Slide 15: Group Key Highlights
Group Key Highlights • Pre-festive push for sale advertisements could • Increased share of local • Revenue remained flat contain the de-growth advertisers by 2% from • Event: Focus on for print digital at ~Rs 21 Outdoor & Event for Dainik Jagran Q1 to Q2 improving profitability Crores in H1FY20 • Au
Slide 16: Print Business Performance
Print Business Performance ADVERTISMENT REVENUE OPERATING REVENUE -3% -3% -4% -3% 311 301 673 654 434 418 917 891 Performed the best among peers in a difficult environment Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 OPERATING PROFIT PROBIT BEFORE TAX -6% -12% -5% -18% Margins to
Slide 17: Print Business Performance – Operating Revenue
Print Business Performance – Operating Revenue DAINIK JAGRAN OTHER PUBLICATION Pre-festive push for sale -3% -8% advertisements contained de-growth for 352 82 341 Ad Revenue of Dainik Jagran to 2% in Q2 75 Floods in Bihar and UP affected operating revenue Turn around of I-Next Profit of Rs.1.4 crore
Slide 18: MBL: Operating Performance
MBL: Operating Performance REVENUE EBITDA & Margin PAT & Margin Government + Political Non-Government 20% 34% 31% 17% Radio Led Events Regained market share 156 53 27 27 22 132 to 19% in terms of Volume 10 41 3 14 123 116 H1 FY19 H1 FY20 H1 FY19 H1 FY20 H1 FY19 H1 FY20 Revenue drop amplified due to
Slide 19: MBL Focus on Profitable Growth
Focus on Profitable Growth MBL Peer Continue to deliver superior profitability despite strong headwinds due to focus CAGR CAGR on Core Radio rather than Non-Radio Revenue +13% +7% 298 325 557 621 Events 271 509 537 +22.0% 226 +44% Prudent allocation towards geographical FY16 FY17 FY18 FY19 FY16 FY17
Slide 20: Superior Performance not visible in Multiples
Superior Performance not visible in Multiples PE Multiple 106 71 62 55 56 41 29 25 FY17 FY18 FY19 H1 FY20* Music Broadcast Peer Delivering superior performance on Revenues, Profits, Return Ratios and Distribution to Shareholders calls for re-rating * - Calculated on TTM 19 Note: PE calculated as Avg
Slide 21: Outdoor and Events Business Performance
Outdoor and Events Business Performance -9% +8% 70 63 148 136 Rationalization Exercise taken up by the management to improve profitability OPERATING REVENUE H1 FY19 H1 FY20 FY18 FY19 In Rs. Crs In Rs. Crs Strategy: +0.7 41x 3.9 5.5 • Events: Continue to focus 4.9 on improving the bottom line OPERATI
Slide 22: Digital Business Performance
Digital Business Performance +20% 21 21 40 33 Unique user base grew by 95% YoY to 76.3 million users OPERATING REVENUE Page views grew by 62% YoY to 507 Mn from H1 FY19 H1 FY20 FY18 FY19 313 Mn page views +26% +38% Vishvas.News expanded its OPERATING PROFIT initiatives into one more language – Assam
Slide 23: Softening of Newsprint Prices to Improve Profitability
Softening of Newsprint Prices to Improve Profitability Raw Material to Sales Other Expense to Sales* 41% 39% 21% 38% 20% 21% 21% 22% 21% 20% 22% 37% 37% 35% 36% 35% 35% 20% 19% 36% Stable Other Expenses No compromise made Full impact of softening of Newsprint prices will be as % to sales even with l
Slide 24: Digital – Investing to Build leadership
Digital – Investing to Build leadership Indian website in overall Our Digital Media Portfolio Healthcare Industry with 8.2 Mn Unique Users 26.3 Mn Unique • Digital Advertisement Revenue growth User in Education #1 category for H1FY20 #10 in news and info 76.3 ✓ Print Digital Growth remained flat cat
Slide 25: Financial Performance
Jagran Financial ® oO q w & rs & a ® Oy + a
Slide 26: Mid-day Financial Performance
Mid-day Financial Performance Particulars (Rs. in Crs) Q2 FY20 Q1 FY20 Q2 FY19 Operating Revenue* 20.77 28.01 25.85 Advertisement 15.46 20.95 19.20 Circulation 4.48 5.90 5.94 Other Operating Income 0.83 1.16 0.72 Expenses 19.59 24.36 22.95 Operating Profit 1.18 3.65 2.91 Operating Profit Margin 5.68
Slide 27: MBL Financial Performance
MBL Financial Performance Particulars (Rs. in Crs) Q2 FY20 Q1 FY20 Q2 FY19 Operating Revenue 62.53 69.78 80.14 Expenses 44.02 47.42 53.57 Operating Profit 18.51 22.36 26.57 Operating Profit Margin 29.59% 32.05% 33.15% Other Income 4.99 3.29 3.60 Depreciation 8.67 8.59 6.70 Interest 2.65 2.57 1.39 Pr
Slide 28: Operating Margin Break-up
Operating Margin Break-up Particulars (Rs. in Crs) Q2 FY20 Q1 FY20 Q2 FY19 Dainik Jagran* Operating Revenue 341.48 389.44 351.58 Operating Profit 72.94 114.41 77.74 Operating Margin 21.36% 29.38% 22.11% Other Publications* Operating Revenue 75.48 82.59 81.86 Operating Profit -1.14 2.87 -0.95 Operati
Slide 29: Consolidated Profitability Statement
Consolidated Profitability Statement Rs In Cr Q2 FY20 Q2 FY19 YoY Q1 FY20 QoQ H1FY20 H1FY19 YoY Revenues 514.5 553.4 -7% 584.3 -12% 1,098.8 1,156.0 -5% Advertisement Revenue * 370.6 398.5 431.3 801.9 843.8 Circulation Revenue 107.2 110.4 108.6 215.8 220.1 Others 36.7 44.5 44.3 81.1 92.0 License Fees
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (Rs. In Cr) Sep-19 Mar-19 EQUITY AND LIABILITIES (Rs. In Cr) Sep-19 Mar-19 Non-Current Assets 1,802.7 1,879.2 Equity and Liabilities 2,165.8 2,101.7 Property, plant and equipment incl. CWIP 535.1 575.0 Equity share capital 59.3 59.3 Right to use assets 83.2 Equity a
Slide 31: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement In Rs. Crs Half Year ended 30-Sep-19 Half Year ended 30-Sep-18 Profit before tax 160.6 205.0 Adjustments 87.2 58.7 Operating Profit Before Working Capital Changes 247.8 263.7 Change in operating assets and liabilities 37.5 -125.5 Cash generated from operations 285.3
Slide 32: Group Introduction
Group Introduction Group Introduction
Slide 33: Value Proposition
Value Proposition PRINT RADIO DIGITAL Print Non Print FASTEST growing Undisputed LEADER: Strong GROWTH RIGHT mix of stability media: ✓ Dainik Jagran leads the IRS 2019 Potential: and scalability: Q2 rankings with a total ✓ Print Business continues to readership of 7.26 Crs. ✓ Reaping benefits of geo
Slide 34: Jagran Today
Jagran Today Print Digital Radio Jagran Prakashan Limited holds 73.02% of Music Broadcast Limited Activation OOH (RadioCity) 33
Slide 35: Multi Media Conglomerate – Width, Depth and Heritage
Multi Media Conglomerate – Width, Depth and Heritage Two #1* Print India’s Largest* 90+ mn* Dailies, Dainik Jagran Readers (Hindi) and Inquilab read daily- Dainik (Urdu) #10 News / Jagran Information Category 10 with over 76.30 Mn Publications 13 Digital unique visitors Media Portals 5 Business No 1
Slide 36: Brand Strength – Stability, Consistency and Trust
Brand Strength – Stability, Consistency and Trust PRINT BUSINESS DIGITAL BUSINESS RADIO BUSINESS 35
Slide 37: Awards & Certifications
Awards & Certifications Recognizing Group’s leadership position in different fields of operations, various distinguished bodies have bestowed 46 Awards upon the Group during the quarter MBL - Great Places to Work Women 2019 35 awards for Dainik Jagran 2 awards for Radio City 7 awards for Jagran New
Slide 38: Contact Us
Contact Us Jagran Prakashan Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L22219UP1975PLC004147 CIN: U74140MH2010PTC204285 Mr. Amit Jaiswal Ms. Payal Dave amitjaiswal@jagran.com Contact: +91 9819916314, Email: payal.dave@sgapl.net Ms. Jigar Kavaiya Contact: +91 9920602034, Email: jigar.kavaiya@sgapl