Saregama India Limited · NSE:SAREGAMA
Saregama India — Investor Presentation (May 2022)
38 slides from Saregama India's investor presentation, May 2022
Slide 1: India's Largest IP Company
INDIA’S LARGEST I1P COMPANY
Slide 2: Journey
JOURNEY First recording of an Indian song (by Gauhar Jaan). Part of our library RPG Group acquired the TV Serial production Started investing in non-film company started Carvaan launched music 1902 1946 1986 2000 2001 2016 2017 2017 2020 2022 Company incorporated as The Started investing in new Film
Slide 3: Industry Overview
INDUSTRY OVERVIEW
Slide 4: Global Music Industry Continues to Grow
GLOBAL MUSIC INDUSTRY CONTINUES TO GROW 523M PAID MUSIC STREAMING CUSTOMERS GLOBALLY
Slide 5: Indian Media & Entertainment Sector Is Growing Rapidly
INDIAN MEDIA & ENTERTAINMENT SECTOR IS GROWING RAPIDLY • Media & Entertainment sector to grow 17% in 2022 to reach INR 1889 Bn and then to grow at a CAGR of 11% to reach INR 2320 Bn by 2024. • India's sustained economic growth and the universal acceleration of digital adoption by users across geogra
Slide 6: Indian Music Industry
INDIAN MUSIC INDUSTRY • The growth in India has come on the back of digital consumption led by smartphone popularity and low data tariffs • The success of audio streaming services is fuelled by the ease of accessibility, cheaper data and efficient distribution models Indian Music Industry Size (INR
Slide 7: Company Overview
COMPANY OVERVIEW
Slide 8: Saregama Strengths
SAREGAMA STRENGTHS India’s only entertainment company with IP offerings across media channels (music, film, web series AND TV serials), delivery platforms (physical and digital) and business models (licensing and retail) Large intellectual property portfolio of 142K+ songs, 64 films, 1 web-series, 6
Slide 9: Saregama
SAREGAMA INDIA’S ONLY Entertainment Company into MUSIC LICENSING DIGITAL as well as as well as 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 142k+ 20k+ 6
Slide 10: Strategic Overview
STRATEGIC OVERVIEW Digitisation Driving Growth Increase in Digital Increase Demand for Boom in India in App Usage Content Video/Music Streaming Netflix / Spotify / Gaana Social Media Music YouTube / Facebook Films ~700M smart phones Video Sharing driving driving Web Series Cheap Data Instagram/ Tik
Slide 11: 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 12: Saregama Wants to Take Market Leadership in Indian Music
SAREGAMA WANTS TO TAKE MARKET LEADERSHIP POSITION IN INDIAN MUSIC Disproportionate Acquisition of share of New Content across Hindi & + Small & Mid size Music Catalogues to plug in the Content Gaps of last 25 years + Artiste Management Live Events Regional Languages Catalogue Strength
Slide 13: Financial Summary
FINANCIAL SUMMARY Particulars (INR Mn) FY22 FY21 Y-o-Y Growth FY20 Revenue from Operations • Music 4,738 3,855 23% 4,444 • TV & Films 1,024 521 97% 702 • Publication 44 44 - 69 Revenue from Operations 5,806 4,420 31% 5,215 Operating Income before Content Charge, Interest 2,230 1,451 54% 763 and Depr
Slide 14: OIBCID to PAT
OIBCID to PAT Particulars (INR Mn) FY22 FY21 Y-o-Y Growth FY20 Revenue from Operations (A) 5,806 4,420 31% 5,215 Total Expenses (B) 3,576 2,969 20% 4,452 OIBCID (C= A-B) 2,230 1,451 54% 763 OIBCID Margin (%) 38% 33% 15% Content Charge (D) 463 179 159% 176 Depreciation (E) 27 27 - 29 Finance Cost (F)
Slide 15: Music Segment
MUSIC SEGMENT LICENSING & RETAILING
Slide 16: Saregama Music IP: Fast Growing
SAREGAMA MUSIC IP Licensing Revenue (INR Mn) 3,585 * Fast Growing FY22 FY21 2,839 * FY20 2,361 * Licensing Revenue FY19 1,949 FY18 1,478 * One time income of INR 97 Mn (FY22), 155 Mn (FY21) and INR 21 Mn (FY20) are excluded On account of A. Saregama’s Focus on New Music B. Growing customer interest
Slide 17: Our Music Licensing Partners
OUR MUSIC LICENSING PARTNERS Music Streaming Partners Broadcasting Partners Video Streaming Partners v v v Social Media Platforms Brands 17
Slide 18: Making Money from Music
MAKING MONEY FROM MUSIC A. MUSIC STREAMING APPS (OTT) B. SOCIAL MEDIA PLATFORMS (incl. Video sharing Apps) Saregama has 26 channels on YouTube with a cumulative subscriber Saregama Music is licensed to multiple Global Platforms base of over 64 Mn (i.e. 45% increase from FY21 base of 44Mn) • Saregama
Slide 19: Making Money from Music
IMDb Dil Bekaraar 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 T
Slide 20: Catalogue Strength: Home of Legends
CATALOGUE STRENGTH HOME OF LEGENDS Lata Shamshad Mohd. Geeta Mukesh Kishore Mangeshkar Begum Rafi Dutt Kumar 90% 95% 90% 90% 90% 80% Asha Laxmikant- Kalyanji – Shankar – Ravi S.D. Bhosle Pyarelal Anandji Jaikishan Burman 80% 90% 90% 90% 90% 90% Madan C. Ramchandra Naushad R.D. Purshottam Jagjit Moha
Slide 21: Catalogue Strength: Music of the Biggest Bollywood Films
CATALOGUE STRENGTH MUSIC OF THE BIGGEST BOLLYWOOD FILMS
Slide 22: New Bollywood Films Music
NEW BOLLYWOOD FILMS MUSIC Ranvocr Singh W Rlic Bhatt
Slide 23: New Non-Film Music
NEW NON-FILM MUSIC
Slide 24: Latest Tamil Film Music
LATEST TAMIL FILM MUSIC
Slide 25: Latest Telugu Film Music
LATEST TELUGU FILM MUSIC
Slide 26: Latest Malayalam Film Music
LATEST MALAYALAM FILM MUSIC < me
Slide 27: Music Retailing: Directly Through Carvaan
MUSIC RETAILING : DIRECTLY THROUGH CARVAAN India’s most "DIFFERENTIATED" and "PREMIUM" music brand Brand Attributes Convenience 35+ of Use Segment Targeted at the 35+ generation, who value Convenience over Control for their audio listening experience The Product • Perfect blend of digital technology
Slide 28: Music Retailing: Carvaan Product to Platform
MUSIC RETAILING : DIRECTLY THROUGH CARVAAN Product to Platform Carvaan has been a huge success with middle- aged Indians. 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. The b
Slide 29: Video Segment
VIDEO SEGMENT FILMS, SERIES AND TV
Slide 30: 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 licenses the same movie to TVoD platforms and TV channels • Yood
Slide 31: TV Serials
TV Serials TAMIL TV SERIALS The revenue stream is through sale of commercial time • Saregama is leading TV series content producer for Southern (advertising slot). The Company also monetises these serials channels. In the past, it also produced shows for Hindi GECs, but due on digital platforms like
Slide 32: Financials
FINANCIALS
Slide 33: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (INR Mn) FY22 FY21 FY20 Revenue from Operations 5,806 4,420 5,215 Other Income 349 309 112 Total Revenue 6,155 4,729 5,327 Total Expenses 3,934 3,119 4,610 Depreciation and Amortisation 132 56 47 Finance Cost 45 35 67 PBT 2,044 1,519 603 Tax 518 384 168 PAT
Slide 34: Historical Consolidated Balance Sheet
HISTORICAL CONSOLIDATED BALANCE SHEET Equity and Liabilities (INR Mn) FY22 FY21 FY20 Assets (INR Mn) FY22 FY21 FY20 Shareholders Fund Non Current Fixed Assets 193 (a) Property, Plant and Equipment 2,141 2,046 2,053 (a) Equity Share Capital 174 174 13,584 (b) Right to use assets 13 11 5 (b) Other Equ
Slide 35: Consolidated Cash Flow Statement
CONSOLIDATED CASH FLOW STATEMENT Particulars (INR Mn) FY22 FY21 FY20 Pre-Tax Profit 2,044 1,519 603 Change in other operating activities ( including non-cash Items) (139) (176) 25 Change in Working capital (389) 692 388 Taxes Paid (572) (139) (221) Net cash generated from/(used in) Operating Activit
Slide 36: Financial Charts (Consolidated)
FINANCIAL CHARTS (CONSOLIDATED) Revenue from Operations Music Licensing Revenue PAT (INR Mn) Diluted EPS (INR) (Turnover) (INR Mn) (INR Mn) 8.4 1,526 * 6.5 1,135 * 3,585 5,806 5,447 5,215 * 2,839 4,420 3.1 2,361 543 2.5 3,566 435 1,949 1.6 283 1,478 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
Slide 37: Disclaimer
DISCLAIMER Saregama India Ltd. Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in al
Slide 38: Thank You
THANK YOU