Nation Media Group Limited · NSEKE:NMG
Nation Media — FY2008 Earnings Presentation
51 slides from Nation Media's earnings presentation, 2009
Slide 1: NMG Investor Briefing 2008 Results
NMG Investor B i fi Briefing 2008 Results
Slide 2: Agenda
Agenda 2008 Highlights Divisional Updates 2008 Financial i i l Results l FY09 Outlook Future Plans Q&A
Slide 3: Highlights
WANA; > y Highlights Media of Africa for Africa
Slide 4: 2008 Overview
2008 Overview Overall modest performance Slow start in Kenya due to post‐election situation i i Improved performance in MCL: 42% up on LY Promising starts from new products: Daily Metro, Business Daily and NTV(U) Inflationary pressures on newsprint and fuel New Nation Digital g Media Division formed
Slide 5: 2008 Overview
2008 Overview Hourly TV news updates and Morning Show as a result of the increasing need for news content Firm grip on news agenda :Waki /Kriegler reports Mwananchi recognized for its bold reporting p g and unearthingg of corruption p scandals NTV (U) rolled out to 4 new towns Covered historic U.S.
Slide 6: NMG recognized for its contribution by the Kofi Annan mediation team
NMG recognized for it’s contribution by the Kofi Annan mediation team . . .
Slide 7: Business Daily Diageo Awards
Business Daily Diageo Awards Business Daily Editor, Nick Wachira, receives the DIAGEO AFRICA BUSINESS REPORTING 2008 AWARD
Slide 8: NMG Corporate Culture Launch
NMG Corporate Culture Launch Company wide Cultural transformation process launched on June 13th, 2008 The NMG Formula for Success
Slide 9: 2008 Challenges
2008 Challenges Post‐election crisis Increased competition War on talent in Tanzania Press freedom issues Global economic crisis
Slide 10: Divisional Updates
AAS ae Divisional Updates Media of Africa for Africa
Slide 11: Nation Newspaper Division
Nation Newspaper Division Product Improvement: Taifa Leo
Slide 12: Daily Nation: Fyatuka na Shares Promotion
Daily Nation: Fyatuka na Shares Promotion NMG Distributor, Distributor Asha Moghe of Nyanza Wholesalers Wholesalers, announces the winner at one of the Fyatuka na Shares with Daily Nation promotion draws. With her is Harry Njagi, Brand Manager, Nation Newspapers.
Slide 13: KPMG and Business Daily Top 100 mid-sized companies awards
KPMG in conjunction with Business Daily for the Top 100 mid‐sized companies awards Mr. Ken Njoroge, Mr Njoroge CEO of Cellulant Kenya, Kenya explains what it takes to be the best. Cellulant Kenya was the best overall company in the KenyaTop100 Mid‐sized Company Awards 2008.
Slide 14: CEOs Most Respected Company Awards
CEOs Most Respected Company Awards Airways, 1st Runner L‐R: Linus Gitahi (GCEO‐NMG); Paul Kasimu (HR Director‐Kenya Airways Runner’s‐up); s‐up); Peter nd Arina (COO‐Safaricom Ltd, Overall Winner); Bashar Arafeh (COO‐Zain EA, 2 Runner’s‐up) and Charles Muchene (Country Leader‐PricewaterhouseCoopers K
Slide 15: Nation Broadcasting
Nation Broadcasting
Slide 16: Q FM Launch
Q FM Launch * Now the 3rd most listened to Swahili station
Slide 17: Easy FM: Blues and R&B
Easy FM: Blues and R&B ‘Because life is hard enough’ campaign got good response as listeners identified with the station Easy FM is now the number 1 English radio station for f 18‐34 year‐ olds LSM 7‐12 all areas. Source: Steadman KARF JAN 2009
Slide 18: Digital Division
Digital Division 1. Re‐design of web‐sites 2. Launch of Africa Portal ‐ Nation Africa 3. Launch of e‐papers 4. Launch of Social Web‐site 5. Introduced reverse bidding 6. Introduction mobile Video Alerts
Slide 19: Daily Nation New-Look Website
Daily Nation New‐Look Website
Slide 20: Business Daily New-Look Website
Business Daily New‐Look Website
Slide 21: The East African New-Look Website
The East African New‐Look Website
Slide 22: NTV New-Look Website
NTV New-Look Website Po a Nota member? Register here NM Turning Qostenya SCHEDULE | PROGRAMMES | — NTV FACES BLOGS | ABOUT us Today's Highlights Today's Schedule This Week's Highlights THE BEAT 17:00 hrs WEEKDAYS 17:00 HRS. A music compilation programme that airs the latest and most arch 20, 2009 06
Slide 23: Easy FM New-Look Website
Easy FM New-Look Website easy en ON AIR NOW PLAYING Ci ku Drive email UP NEXT UP NEXT Ciku Sunset Blues 18:00:00 - 19:00:00 | News | Friday, March 20, 2009 AU Extends The Mandate Of its SEAI Peacekeers in Somalia. The African Union (AU) has agreed to extend the mandate of its peacekeeping mission in
Slide 24: Homepage
Homepage FEATURES Blogging Africa | Web TV |Video | Mobile phone | S i l networks Social k |News |N |Interactive | Syndication | Premium content
Slide 25: E-Papers
&B |@| | Bima 20, 2009 E - Pa pe rs PR This and more stories in your favourite entertainment magazine DAILY NATION NAIROBI, FRIDAY, MARCH 20, 2000 ON OTHER POLITICS ws Kibaki and Raila close MPS Saagy Review ==. ranks against rebels Notions Sin ing aces aCabinet jonas AW PRESIDENT Nomar stopsad to S
Slide 26: With ZuQka, you can BE FAMOUS!
With ZuQka, you can BE FAMOUS! ZuQka.com social networking website and ZuQka the definitive ZuQka, entertainment and lifestyle magazine, only in the Friday Nation launched on 5th December 2008
Slide 27: Monitor Publications Ltd
Monitor Publications Ltd Newly installed colour Unit by Malaysian Engineers at MPL Printing Press Press.
Slide 28: CSR Activities
CSR Activities Women and children from Baamba, Baamba Kilifi district receive food donations from Mombasa bureau staff following an urgent appeal for food in the area during the dry season.
Slide 29: NMG staff planting trees at Kiambere
NMG staff planting trees at Kiambere in Mbeere district . There were 1,200 trees planted.
Slide 30: Newspapers in Education (NIE)
Newspapers in Education (NIE), a project launched by Monitor Publications Ltd in Uganda Mama Ngina Girls High School students at Mombasa bureau offices during a visit to th b the bureau.
Slide 31: Annual Children Voices conference
The more than 1000 students who attended the annual Children Voices conference sing during the opening session on May 17, 2008. The theme was ‘Never Never Again’ Again following the post election violence.
Slide 32: Nation staff participate in community walks
Nation staff ff p participates p in the Freedom from Hunger Walk. Staff members warming up before the Mater Heart run held in May 2008
Slide 33: 2008 Financial Results
AAS ae 2008 Financial Results Media of Africa for Africa
Slide 34: 2008: Strong Operating Results
2008: Strong Operating Results Turnover 7.4% Cost of 1.4% 1 4% Sales Profit 19 3% 19.3% before Tax
Slide 35: Sustained Turnover Growth (Ksh M)
Sustained Turnover Growth (Ksh M)
Slide 36: Pre-tax Profit (Kshs M)
Pre-tax Profit (Kshs M) 500 1,000 1,500 2,000 2,500
Slide 37: Dividend Trend (Kshs/share)
Dividend Trend (Kshs/share) 6 00 6.00 5.50 5.25 5.00 4.00 3.50 3.00 3.00 3.00 2.50 2.00 1.25 1 00 1.00 0.00 2002 2003 2004 2005 2006 2007 2008 NB: Adjusted for stock split • 5% Growth on 2007 Dividend rate
Slide 38: Profit and Loss Account (Ksh M)
Profit and Loss Account (Ksh M) 2008 2007 % Change T Turnover 8 252 7,686 8,252 7 686 7 4% 7.4% Profit Before Tax 1,910 1,602 19.3% Tax Expense (614) (525) (17)% Minority Interest (9) 13 (164)% Profit P fit Attributable Att ib t bl to t Shareholders 1,287 1,090 18% Earnings per Share 9.0 7.6 18% Div
Slide 39: Consolidated Balance Sheet (Ksh M)
Consolidated Balance Sheet (Ksh M) 2008 2007 Capital & Reserves Share Capital 357 357 Retained Earnings 3,316 2,855 Other Reserves 85 77 Proposed Dividends 570 535 Minority Interest (13) (88) Total Equity 4,315 3,736 Non‐current Liabilities 131 267 Total Equity & Non‐current liabilities 4,446 4,003
Slide 40: Condensed Cash flow Statement (Ksh M)
Condensed Cash flow Statement (Ksh M) 2008 2007 Cash Generated from Operations 1,451 2,131 Net Interest 83 56 Tax Paid (624) (558) Net Cash from Operating Activities 910 1,629 Net Cash used in Investing Activities (598) (390) Net Cash used in Financing Activities (900) (995) Net Cash Movement (588)
Slide 41: Nation Newspapers Division
Nation Newspapers Division Advertising Revenue 7% Circulation Revenue (5)% Operating Profit 26% Economic push from Q2 to recover from post-elections effects contributed to strong advertising growth Distribution operations severely impacted by post-election post election violence in Q1 New titles lau
Slide 42: Nation Broadcasting Division
Nation Broadcasting Division TV Revenues 2% ((5)% ) R di R Radio Revenues A positive contributor to bottom line More local content programming on NTV
Slide 43: Monitor Publications Ltd
Monitor Publications Ltd Revenues 9% Operating Profit 51% MPL now a significant contributor to Group operating profit Double digit growth (51%) in operating profit
Slide 44: Mwananchi Communications Ltd
Mwananchi Communications Ltd Advertising Revenue 29% Circulation Revenue 17% Operating Profit 42% MCL performance better than last three years following management restructure
Slide 45: Digital Division
Digital Division Revenue 119% Operating Profit 12% Greater awareness in the market to online advertising and digital media Implementation p of new Content Management System
Slide 46: East African Magazines
East African Magazines Advertising Revenue 10% Circulation Revenue (21)% Magazine advertising now part of advertising budgets Circulation in Q1 affected byy p post‐ election situation through disruption of distribution channels
Slide 47: Outlook
Media of Africa for Africa
Slide 48: Kenya
Kenya Nation Digital Division to continue pursuing digital media opportunities EATN TV launch expected soon Q FM expected p to continue growing g g market share Launch of online radio to target g Kenyans in the diaspora Converged advertising structure to improve efficiency and continue to be custome
Slide 49: Uganda
Uganda NTV Uganda g to continue to fortifying its presence in the market NTV (U) performance on track. National roll‐out to continue. (already in 5 towns) Radio expansion opportunities Magazines i Publishing bli hi Division i i i to contribute more to bottom line
Slide 50: Tanzania
Tanzania Continued significant improvements due to restructuring Continue to pursue television entry Economic melt down to p pose a challenge, but plans in place to g mitigate impact p New press investment in 2009
Slide 51: Thank You
Thank You This presentation and our published results are available on our website www.nationmedia.com