Jagran Prakashan Limited · NSE:JAGRAN
Jagran Prakashan — Merger or Acquisition (December 2014)
31 slides from Jagran Prakashan's merger presentation, Dec 16, 2014
Slide 1: Jagran Prakashan Limited (JPL) to Acquire Music Broadcast Private Limited
Jagran Prakashan Limited (JPL) to Acquire Music Broadcast Private Limited India’s Leading Radio Network 16th December 2014
Slide 2: 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 3: Contents
Contents Radio – An Attractive Opportunity About Radio City Key Financials About the Transaction Acquisition Rationale Way Forward About Jagran Prakashan 3
Slide 4: Radio – An Attractive Opportunity
Radio – An Attractive Opportunity 4
Slide 5: Media & Entertainment (M&E) Industry Overview
Media & Entertainment (M&E) Industry Overview Favorable economic and demographic factors in India, will lead to increase in disposable income thereby leading to higher consumption of M&E content Media industry to grow at a CAGR of 14% from 2013 to 2018 Current per capita media spends in India
Slide 6: Radio Industry Overview (1/2)
Radio Industry Overview (1/2) IRS Q2 2012 data: Radio reaches ~158 mn people across India versus ~42 mn in 2007, Expected to reach ~182 mn people in 2020 After 15 years, Industry has now become Profitable, justifying investments in the sector Similar to Internet Advertising, the revenues in Ra
Slide 7: Radio Industry Overview (2/2)
Radio Industry Overview (2/2) Radio in India is dominated by National Advertising. Local Advertisers embracing the medium will unleash huge potential – Radio acts as a complimentary media platform to all other mediums, more so to local mediums – Most cost-effective solution for ‘local’ & ‘national
Slide 8: Growth in Radio Advertising
Growth in Radio Advertising Radio revenues are estimated at INR 1,660 Cr and are expected to reach INR 3,360 Cr by 2018 Radio Industry has grown faster than traditional media (15% CAGR, 2009-2013) and is expected to grow at a CAGR of 18% (2013-2018) Radio Industry expected to increase its shar
Slide 9: JPL’s foray in Radio Business
JPL’s foray in Radio Business Makes a strong business proposition Leading players in the radio industry operate at extremely healthy margins (~30% EBITDA) and these margins are consistently improving Value Creator for stakeholders, strong valuation multiples… As radio is considered a high grow
Slide 10: The fast growth of the medium, synergy benefits and attractive valuation multiples
The fast growth of the medium, synergy benefits and attractive valuation multiples, makes the industry a compelling one… Radio provides an excellent opportunity to gainfully deploy capital to improve ROC and EPS 10
Slide 11: About Radio City
About Radio City 11
Slide 12: About Radio City (1/3)
About Radio City (1/3) Radio City’ is one of India’s leading private Focused network of 20 stations… FM radio operators with a nation-wide presence Pioneers in Radio - and have a strong brand equity Has 20 stations across 7 states Delhi Jaipur Lucknow Phase I stations include Mumbai, Delhi,
Slide 13: About Radio City (2/3)
About Radio City (2/3) MBPL is one of the largest player by reach and airtime revenue Significant Non-FCT business Present in 14 of top 16 ad-revenue generating markets with focus on SEC AB audience - Second largest player in the markets of presence Leader in various markets, including Mumbai,
Slide 14: About Radio City (3/3)
About Radio City (3/3) Experienced sales team with credible legacy relationships, spread across India Employer of Choice Radio City awarded the Strong Corporate Governance, along with robust processes, systems, and “Best place to work in the Media vertical” 10-11 infrastructure, provide a sustai
Slide 15: History of Radio City
History of Radio City MBPL was Incorporated in November 1999 and started its first radio station in Bangalore Iconic Radio Programs in July 2001 Subsequently stations were started in Lucknow (December 2001), Mumbai (May 2002) and New Delhi (April 2003) The The no 1 During Phase II of FM Radio,
Slide 16: Key Financials
Key Financials 16
Slide 17: Financials - JPL
Financials - JPL FY12 FY13 FY14 H1-15 Net Revenue 1355.7 1521.8 1702.7 876.6 Other Income 25.5 119.0 46.6 14.1 Total income 1381.2 1640.8 1749.3 890.7 y-o-y Growth 11% 19% 7% Total Costs 1038.8 1226.6 1320.1 663.3 EBITDA 342.4 414.2 429.2 227.4 % Margin 24.8% 25.2% 24.5% 25.5% PBT 255.6 255.2 305.7
Slide 18: Financials - MBPL
Financials - MBPL FY12 FY13 FY14 H1-15 Net Revenue 128.9 148.6 158.5 95.4 Other Income 2.3 2.2 3.3 1.7 Total income 131.2 150.8 161.8 97.1 y-o-y Growth 18% 15% 7% Total Costs 105.8 117.4 119.3 70.3 EBITDA 25.4 33.4 42.5 26.8 % Margin 19% 22% 26% 28% PBT 15 9.2 21.4 17.4 % Margin 11% 6% 13% 18% Adver
Slide 19: The Transaction
The Transaction 19
Slide 20: Transaction Overview
Transaction Overview 100% acquisition of Radio City through All Cash Deal gets JPL into high growth and profitable Radio segment The acquisition is subject to regulatory approvals, including from Ministry of Information and Broadcasting, and execution of binding agreements (approvals expected be
Slide 21: Acquisition Rationale
Acquisition Rationale 21
Slide 22: Strategic Benefits
Strategic Benefits Increased business diversity, across geographies and across media vehicles – Pan India presence helps JPL reap benefits from traditionally non Jagran Geographies Radio business will complement JPL’s print, outdoor, activation and digital businesses and enable deeper inroads wi
Slide 23: Financial Benefits
Financial Benefits Value Creation for the shareholders Radio City’s high operating margins (~28%) will positively contribute to JPL’s operating margins and profitability An excellent opportunity to gainfully deploy our capital with improvement in ROC As radio is considered a high growth medium
Slide 24: The Way Forward
The Way Forward 24
Slide 25: The Way Forward
The Way Forward Migration of existing stations of MBPL to Phase III of Radio Finalization of Strategy for Expansion in Phase III – Focus on Strengthening the core JPL as well as MBPL domains Exploring possibilities of consolidation with Promoter’s existing radio business – “Radio Mantra”. A st
Slide 26: About Jagran Prakashan
About Jagran Prakashan 26
Slide 27: Print, OOH, Activations, New Media
Print OOH Activations New Media 27
Slide 28: JPL… The Largest Read Print Media Group of India
JPL… The Largest Read Print Media Group of India 68 million readers 12 5 100+ 15 Titles Languages Editions States Dainik Jagran: India’s #1 Daily inext: India’s only Bilingual Compact Hindi Publications (Dainik Jagran, Nai Dunia/Nav Dunia) Mid-day: India’s #1 Afternoon Daily Other Publications Inqui
Slide 29: JPL: India’s Media Conglomerate
JPL: India’s Media Conglomerate Hindi Publications Other Publications Dainik Jagran: Mid Day: Flagship Brand of the Group, India’s #1 Afternoon Daily No. 1 Daily of the Country with Highest Readership Others: Nai Dunia /Nav Dunia: Punjabi Jagran, Midday Gujarati, I-Next, Leading and fastest growing
Slide 30: Consistent Growth
Consistent Growth FY09-14 Revenue CAGR: 15.6% Advertising: 16.5% (Industry: 10.3%) 1,703 Circulation: 12.8% (Industry: 5.7%) 1,522 158 1,355 154 359 1,221 152 315 129 942 265 238 824 88 75 216 197 1,186 1,053 938 854 638 552 FY09 FY10 FY11 FY12 FY13 FY14 Advertising Circulation Other Operating Reven
Slide 31: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Jagran Prakashan Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: CIN: U74140MH2010PTC204285 L22219UP1975PLC004147 Ms. Payal Dave / Mr. Jigar Kavaiya Mr. Amit Jaiswal dpayal@sgapl.net / kjigar@sgapl.net amitjaiswal@jagran.
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