Nation Media Group Limited · NSEKE:NMG
Nation Media — H1 2021 Earnings Presentation
41 slides from Nation Media's earnings presentation, Aug 25, 2021
Slide 1: Investor Briefing: 2021 Half Year Performance
INVESTOR BRIEFING 2021 HALF YEAR PERFORMANCE WEDNESDAY 25TH AUGUST 2021
Slide 2: Agenda
Agenda 1. Introduction 2. NMG Strategic Objective 3. Digital Transformation Journey 4. Financial Performance 5. Questions/ Answers 2
Slide 3: Get the Exclusive: Nation.Africa
Get the Exclusive we are NATION Empower Africa. —> nation.africa NATION . Empower Africa. Nation Media Group
Slide 4: Strategic Objective
Strategic Objective GROW CONTENT BUSINESS • Creating diverse streams of relevant CREATING NEW VALUE content • Invest in new ventures that • Strengthen the bond with our complement/ link to the audiences through quality, credible & content business trusted content • Develop new ways of providing • In
Slide 5: Our Transformation Agenda
Grow current business & build a Our Transformation strong digital foundation for a Agenda sustainable future • New Business Model: Advertiser and Reader revenue • Development of an Africa-wide digital brand • An agile and responsive organisation structure + Talent & Skillset • Innovation, Partnershi
Slide 6: New Business Model: Audience acquisition, Engagement and Monetisation
New Business Model : Audience acquisition, Engagement and Monetisation • Acquiring and owning the new digital audiences • Investment in tools for engagement: Newsletters, Emails, Comments, Events • Monetisable products for local and diaspora markets • Focus on verticals to drive audience aggregation
Slide 7: Development of an Africa-wide digital brand
Development of an Africa-wide digital brand • Rolled out our digital brand – Nation.Africa • Invested in resources and infrastructure to drive scale • Carefully curated news and information 7
Slide 8: An agile and responsive organisation structure
An agile and responsive organisation structure Content, customer service and effective deployment of technology A digitally savvy human resource: talent & skillsets 8
Slide 9: Nation Leadership Forum
THOUGHT Vee ; ( ) i —— eS LEADERSHIP | , : La 2 THE NEXT 60 YEARS IN AFRICA MY sNMGLeadershiprorum COVID-19 AND THE ECONOMY
Slide 10: Corporate Social Responsibility
Corporate Social Responsibility • Environment • Education • Community Support 10
Slide 11: Ey v,
Ey v, — SL Pm» URNS y NAIROBI 21] 3X se . CLOSING |Intby 730% Attitude. CEREMONY meoeaen SUNDAY 10:00PM Ses Same M Ith & Illness | ramon oun unos ano Hake sense OF “THR MONUMENTAL CONCERN JUMATATU 23:08:2021 Tue. 27" JULY 3:000m 11
Slide 12: Our Digital Transformation Journey
Our Digital Transformation Journey 12
Slide 13: Global Media Trends
Global Media Trends • Trust in news up • Paying audiences up • Big brands do better • Disinformation major concern 13
Slide 14: Taking Nation to Africa
Taking Nation to Africa CONTENT REACH YIELD FREQUENCY ✓ Changing the quantum ✓ Optimising revenue across ✓ Channels ✓ Market from East Africa multiple channels ▪ Web, TV, Newspapers, Radio (100m+) to Africa (Over ✓ Advertising, Subscriptions ▪ Podcasts, Video, Events 1B) and Market Places TECHNOLOGY
Slide 15: The New Nation Journalist: Changing skills and attitudes
The “New Nation Journalist”: Changing skills and attitudes • Writing + producing for web • 24-hour cycle • Analytics • Understanding digital news business • Monetisation + values 15
Slide 16: Print media: Continuously re-invent for commercial viability
Redesigned our print products Print media: Continuously improve product offering Continuously re-invent for Key partnerships to improve/ grow content commercial Investment in processes of writing and viability editing Investment in data journalism 16
Slide 17: Increasing the voice of the youth in Nation platforms
Increasing the voice of the youth in Nation platforms 17
Slide 18: Television and Video: Revenue headroom; video monetisation
Television and Video: Revenue headroom; video monetisation • Create daily short form video to drive engagement and monetisable traffic. • Co-create Advertiser Video on Demand • Curate TV Archive for Nation.Africa • Reposition the TV/Video business to meet the needs of younger audiences 18
Slide 19: Nation.Africa Milestones
Nation.Africa Milestones Strategy to drive and Launched Digital brand and Youth strategy to build measure user acquisition and Africa portal, Nation.Africa. audience funnel. tools to engage them. Capacity building: Skillset Mobile newsroom to Launched Paywall frontline digital journalism. mapping, t
Slide 20: Nation.Africa: Registrations Trend
Nation.Africa: Registrations Trend (As at 22nd Aug 2021) 400,000 350,000 Number of registrations 300,000 250,000 Registrations: All signed up users since launch of datawall 200,000 150,000 100,000 50,000 - Aug 21 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 (as
Slide 21: Nation.Africa Subscriptions Trend
Nation.Africa Subscriptions Trend (As at 22nd Aug 2021) 120,000 Subscriptions: Total 100,000 subscriptions since launch of paywall Subscriptions 80,000 60,000 40,000 20,000 - Jan Feb Mar Apr May June July Aug (as at 22nd) Subscriptions 506 18,958 40,610 57,669 73,929 89,548 102,878 113,642 Period 21
Slide 22: Nation Puzzles
: 7 - NATION (*) | —> Puzzles Can't get enough of the games? If you are done with this one then REGISTER and Start Playing Today! there's more online. nation.africa/puzzles Get started at www.nation.africa/kenya/puzzles Nation Puzzles Ae] Nation Media Group
Slide 23: Nation Audio
23 COUNTRYo THE RISE. catch The rise, the fall and the attempt at r f SportPesa on Nation Audio. y and get to learn that it w nation.africa/audio REGISTER, Listen and Get Empowered. there was a plan in place.
Slide 24: Give Them a Gift of the Truth
24 GIVE THEM A GIFT OF THE TRUTH. Empower your network of friends with The Truth by sharing the sign-up link and get a 10% discount in your next subscription. GIVE THEM A GIFT OF THE TRUTH. Every time you share a sign up link with 3 friends and they subscribe you get a 10% discount and they get to j
Slide 25: Nation.Africa: Next steps
Nation.Africa: Next steps Nation.Africa 2525
Slide 26: Promoting excellence
26 Promoting excellence PRINT -WINNER Annual Journalism Excellence Award Annual Journalism Excellence Award &
Slide 27: Nation.Africa won two International Forum Design Awards
• Nation.Africa won two International Forum (iF) Design Awards, for: ✓ The design system and ✓ The brand campaign video 27
Slide 28: INMA Global Media Awards
5) NMA ‘ @INMAorg First place in Best Use of an Event to Build a News Brand, Groups, goes to @NationMediaGrp for “Nation Leadership Forum" ow.ly/ MHZa50F283h #GMA2021 #INMA2021 28 L INMA INMAorg The Global Media Awards Best in Africa regional winner @NationMediaGrp for “Nation Leadership Forum.” #GM
Slide 29: Financial Performance
Financial Performance 29
Slide 30: Performance Highlights H1 2021
Performance Highlights H1 2021 5% 18% 23% Print advertising Online advertising Operating costs; revenue recovery revenue growth increased efficiencies 40% 29% 28% Television E-paper Total Cash revenue subscriptions 30
Slide 31: Sustained revenue recovery across all segments
Sustained revenue recovery across all segments Covid-19 4,580.4 pandemic 4,470.5 outbreak 14% 3,720.0 3,548.9 3,263.9 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Turnover Kshs Millions 31
Slide 32: Growth in Digital and Television revenue contribution to Group
Growth in Digital and Television revenue contribution to Group 3% 4% 5% 5% 7% 16% 16% 17% 20% 19% 78% 77% 75% 72% 68% 2017 2018 2019 2020 2021 YTD 2021 Print Broadcast Digital Growing Digital revenue contribution from e-paper, online advertising and Nation.Africa subscriptions 32
Slide 33: E-paper subscriptions positive trend
E-paper subscriptions positive trend with accelerated shift to consumption of online content 2% 3% 4% 12% 20% Total circulation 98% 97% 96% copy sales 88% 80% 2017 2018 2019 2020 2021 YTD 2021 Print circulation E-paper sales 33
Slide 34: Sustained operational efficiencies
Sustained operational efficiencies 3,439 3,168 3,075 15% 2,935 H1 2018 H1 2019 H1 2020 H1 2021 Operating costs Kshs Millions Cost containment and optimization measures rolled out on the onset of the pandemic have resulted in improved operational efficiency, positively impacting profitability. 34
Slide 35: Group profitability bounces back despite a challenging business environment
Group profitability bounces back despite a challenging business environment 715.6 Recovery from the impact of the pandemic 580.8 447.9 410.7 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Covid-19 impact on business performance (328.0) Profit/(Loss) before Tax Kshs m 35
Slide 36: Digital and Television contribution to profitability
Digital and Television contribution to profitability 4% 1% 4% 10% 15% 22% 77% 65% 65% 62% 40% -1% -2% 2017 2018 2019 2020 2021 YTD 2021 -139% -32% Print Broadcast Digital 36
Slide 37: Significant business recovery in H1 2021 vs H1 2020
Significant business recovery in H1 2021 vs H1 2020 Profit/ (Loss) Summary H1 2021 H1 2020 Change Kshs m Kshs m % Turnover 3,720.0 3,263.9 +14 Gross profit 3,199.5 2,622.7 +22 Profit/(Loss) before income tax 410.7 (328.0) +225 Income tax expense (125.5) (47.3) -165 Other comprehensive income 4.8 22.
Slide 38: Share Buyback Status
Share Buyback Status • Target: 10% of issued shares (20.74 million shares) • Price: Kshs. 25/- per share • Uptake: As at 23th August 2021, 80.9% (16.77 million shares) • Closing date: 24th September 2021 or on 100% uptake 38
Slide 39: Q & A Session
Q&A Session www.nationmedia.com
Slide 40: Nation Media Group
t Nation Media Group Media of Africa for Africa iY W © TheEastAfrican BUSINESS DAILY —_ palLY@NATION Spsti GO THecrizen Mwanancnr
Slide 41: Empower Africa
Empower Africa