Saregama India Limited · NSE:SAREGAMA
Saregama India — Investor Presentation (May 2019)
42 slides from Saregama India's investor presentation, May 2019
Slide 1: Saregama India Limited Corporate Presentation May 2019
SAREGAMA INDIA LIMITED CORPORATE PRESENTATION | MAY 2019
Slide 2: Snapshot
Snapshot India’s oldest music label and High Dividend Yield and a Zero Strong and professional youngest film production house Debt Company management team with experienced stalwarts from the entertainment industry Owning Intellectual Property (IP) India’s first song was recorded in Digital licensing
Slide 3: Strategic Overview
Strategic Overview Rising Smartphone Falling Rising Individual Ownership Data Prices Falling Piracy based Content 450-500M >Rs3/GB Consumption Content Consumption thru Legal means Going Up • Indians spent 30% of their phone time on entertainment • 325M people viewed video online in 2018 growing @25%
Slide 4: Strategic Overview
Strategic Overview Saregama’s Saregama’s long term strategy : Tostrategy long term be a Pure is toPlay be aContent Company pure play content capitalising on the global company capitalising data on the driven data boomentertainment globally boom Diversified monetisation Higher monetisation of Existin
Slide 5: Last 3 years Track Record
Last 3 years Track Record Total Revenue (INR Mn) PAT (INR Mn)and PAT Margin (%) ROCE* (%) 9% 6,011 8% 22.2% 543 3,668 283 14.3% 4% 2,318 87 5.1% FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 *Capital Employed = share capita. security premium & free reserves Total Revenue grown by 160% PAT grown by 52
Slide 6: Company Overview
COMPANY OVERVIEW
Slide 7: Company Overview
Company Overview • Saregama India Ltd., an RP Sanjiv Goenka Group Company, is India's oldest music label, youngest Consolidated Revenues film studio and a multi-language TV content producer. Over the years, the Company has (In INR Mn) expanded its business from audio to home video, publishing, digit
Slide 8: The Saregama Heritage
The Saregama Heritage • Saregama, the erstwhile HMV India, has been in the entertainment • In 1946, it was incorporated as a Private Limited company with the name business for 114 years and was initially established as a branch of of ‘The Gramophone Co. (India) Limited’ Electrical & Musical Industri
Slide 9: Management Team
Management Team Board of Directors Sanjiv Goenka Preeti Goenka Arindam Sarkar Umang Kanoria Santanu Bhattacharya Noshir Naval Framjee Avarna Jain Non-Executive and Non-Executive and Non-Executive and Non-Executive Group Chairman Non-Executive Director Independent Director Independent Director Indepe
Slide 10: Awards & Accolades
Awards & Accolades Ajji WAARC Innovation Awards Inovation Awards 2019 Special Award for Category The Economic Times Innovation and Silver for Effective Innovation Hamid Brand Equity Marketing Awards 2018 IndIAA Awards 2018 ‘Innovation of the Year’ The Perfect Gift Award Apac Effies One Gold and Two
Slide 11: Financial Summary – Consolidated
Financial Summary – Consolidated Particulars (INR Mn) FY 18-19 FY 17-18 Y-o-Y Growth FY 16-17 Revenues from Operations • Music 4897 2968 65% 1442 • TV & Films 476 529 -10% 669 • Publication 74 68 8% 74 Revenue from Operations Total 5447 3566 53% 2185 PBT without SAR Provision 850 467 82% 185 PBT aft
Slide 12: Business Overview
| eee [a] Fel BUSINESS OVERVIEW
Slide 13: Business Verticals
Business Verticals Saregama is the pioneer of the Indian music industry and has evolved into a premier diversified content player with Intellectual property rights of songs, TV serials, movies having presence across platforms like television, radio, digital, telecom, etc. Business Verticals Music Se
Slide 14: Music Segment
MUSIC SEGMENT
Slide 15: Music Industry
Music Industry • Indian Music industry was estimated at INR 14.4 Bn in FY18, having grown at a Indian Music Industry size CAGR of 14.3% between FY14 and FY18 (KPMG) (INR Bn) • The growth in India has come on the back of digital consumption led by smartphone popularity. Contrary to the popular belief
Slide 16: Piracy
Piracy • Piracy continues to be one of the major issues affecting the Indian film & Music industry with annual loss of revenues to around INR 180 Bn. • Pirated content continues to be the most popular source of music. Indians visited websites providing unlicensed music 9 Bn times in 2017, according
Slide 17: Saregama Music IP
Saregama Music IP • Saregama is the oldest music label in India, with the largest library of songs under its bouquet. A typical movie Music Revenue (INR Mn) has 5 songs. Assuming a music label acquires 1000 movies in an year, it will get 5,000 songs. By comparison Saregama owns 120,000 songs, each d
Slide 18: Film Music IP…best of 20th Century
Film Music IP…best of 20th Century Iconic Late 90s & Early 200s Iconic 90s Iconic 80s Iconic 70s Iconic 60s Iconic 50s 18
Slide 19: Biggest IP collection – Films, Classical & Devotional
Biggest IP collection – Films, Classical & Devotional S.P. Balasubrahmanyam Mukesh 3,136 TRACKS 1,659 TRACKS Asha Bhonsle Jagjit Singh 6,851 508 TRACKS TRACKS Mohd. Rafi Lata Mangeshkar 5,061 TRACKS Kishore Kumar Ameen Sayani 5,676 TRACKS 2,798 TRACKS 694 TRACKS And many more… 4,400+ 150+ 1,800 trac
Slide 20: Diversified Music Monetising Platforms
Diversified Music Monetising Platforms Saregama’s Music Intellectual Property PHYSICAL (handled directly by Company) Digital Publishing Societies DIGITAL • TV Channels PPL : Public Performance of Sound (handled through 3rd • OTT • Radio recordings party licensing) • YouTube • Brand Advertisements •
Slide 21: Music IP Monetisation - Carvaan
Music IP Monetisation - Carvaan • The Company launched a breakthrough product called ‘Carvaan’, which Units Sold (‘000s) 297 is a portable digital music player with inbuilt stereo speakers and preloaded music. 146 214 • Carvaan has multiple variants across languages (Hindi, Tamil, Bengali, 132 146 M
Slide 22: Variants of Carvaan
Variants of Carvaan • Songs in Carvaan have been selected through data analytics and and classified based on singers, lyricists, music composers, actors, moods etc. • With a simple turn of the knob, one can switch between Kishore Kumar classics, to R.D Burman’s pulsating hits, to timeless love songs
Slide 23: Music IP Monetisation: Digital Licensing
Music IP Monetisation: Digital Licensing The company’s evergreen catalogue remains the preferred choice for digital Number of OTT Streams (Mn) platforms, brand advertisements and general entertainment TV channels. 1228 1003 1045 OTT 872 • Saregama licenses its music to various OTT platforms for onli
Slide 24: Music IP Creation: Process
Music IP Creation: Process • The Music IP will be built through new film music acquisition across Hindi, Tamil and Marathi with a clear strategy to start slowly, vet assumptions and start building up the slate over time • The company is additionally creating fresh content for classical and devotiona
Slide 25: Music IP Creation: Last 18 months
Music IP Creation: Last 18 months 25
Slide 26: TV & Films Segment
TV & FILMS SEGMENT
Slide 27: Film Industry
Film Industry Online Video Audience in India will double by 2020 (Mn) • The films business has witnessed growth courtesy expansion of overseas markets, increase in regional content and a rise in acquisitions of the digital content by Over The Top (OTT) platforms. • The global OTT players are making
Slide 28: Video IP Creation & Monetisation: Yoodlee Films
Video IP Creation & Monetisation: Yoodlee Films • Yoodlee Films is Saregama’s production house with a focus on thematic films in all languages, with controlled budgets and a Straight to Digital nucleus on an audience segment of 18 to 35 years. • Yoodlee films, as a brand, will be seen as a serious p
Slide 29: Video IP Creation & Monetisation: TV Serials
Video IP Creation & Monetisation: TV Serials Saregama continues its leadership in Tamil (Sun Network) in the after noon prime time with highest TRP. The revenue stream is through Sun TV is planning to launch a second • Saregama is the leading TV content advertising slot sales. The Company GEC Channe
Slide 30: Publications
PUBLICATIONS
Slide 31: Publications Segment
Publications Segment • The Publications segment includes the publication of Open Magazine, a weekly current affairs and features magazine through a 100% owned subsidiary. • Open Magazine was launched on 2nd April 2009, and was originally available in 12 Indian cities. • Written and edited for the so
Slide 32: Future Outlook
FUTURE OUTLOOK
Slide 33: Outlook
OUTLOOK Music Saregama’s overall B2B revenues will grow at 25% Music The potential market sizing over next few years Digital yoy. This will be driven by growth in OTT platforms Physical (40%-42%) and Publishing(18-20%) is 25M; Estimated sales for next 3 yrs: 5M B2B B2C cumulative Acquisition of new
Slide 34: Financial Overview
FINANCIAL OVERVIEW
Slide 35: Standalone Income Statement
Standalone Income Statement Particulars (INR Mn) FY19 FY18 FY17 Revenue from Operations 5,244 3,456 2,081 Other Income 595 142 159 Total Revenue 5,839 3,598 2,240 Total Expenses 4,917 3,037 1,977 EBITDA* 922 561 263 EBITDA Margin (%) 16% 16% 13% Depreciation 30 38 41 Finance Cost 66 34 23 PBT withou
Slide 36: Standalone Balance Sheet
Standalone Balance Sheet Equity and Liabilities (INR Assets (INR Mn) FY19 FY18 FY17 FY19 FY18 FY17 Mn) Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 174 174 174 2056 1,881 1,893 (a) Property, Plant and Equipment (b) Other Equity 4087 3,647 3,236 (b) Investment Properties 24 24
Slide 37: Consolidated Income Statement
Consolidated Income Statement Particulars (INR Mn) FY19 FY18 FY17 Revenue from Operations 5447 3,566 2,185 Other Income # 564 102 133 Total Revenue 6,011 3,668 2,318 Total Expenses 5,062 3,125 2,064 EBITDA * 949 543 254 EBITDA Margin (%) 16% 15% 7% Depreciation 33 42 44 Finance Cost 66 34 24 PBT wit
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet Equity and Liabilities (INR Mn) FY19 FY18 FY17 Assets (INR Mn) FY19 FY18 FY17 Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 174 174 174 (a) Property, Plant and Equipment 2057 1884 1897 (b) Other Equity 4107 3,643 3,223 (b) Investment Properties 24 24
Slide 39: Financial Charts (Consolidated)
Financial Charts (Consolidated) Total Revenue (INR Mn) EBITDA and EBITDA Margin (%) PAT and PAT Margin (%) 16% 9% 8% 15% 11% 4% 2,318 3,668 6011 254 543 949 87 283 543 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 EBITDA EBITDA Margin (%) PAT PAT Margin (%) Diluted EPS PE Ratio ROCE* 22.2% 14.3% 5.0
Slide 40: Capital Market Data
Capital Market Data 30% 20% 10% 0% -10% -20% -30% Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 -40% Saregama Sensex Shareholding Pattern as on 31st March, 2019 Price Data (As of 31st March, 2019) INR Face Value 10 Market Price 592.3 Others 38.12 52 Week H/L 871
Slide 41: 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 42: Thank You
eA THANK YOU