Jagran Prakashan Limited · NSE:JAGRAN
Jagran Prakashan — Q4 FY19 Earnings Presentation
36 slides from Jagran Prakashan's earnings presentation, May 29, 2019
Slide 1: Jagran Prakashan Investor Presentation Cover Letter
THE WORLD'S LARGEST READ DAILY Jagran May 29, 2019 1) Manager-CRD, BSE Ltd., Re: Jagran Prakashan Limited Phiroze Jeejeebhoy Towers, Scrip Code: 532705 Dalal Street, ISIN No.: INE199G01027 Mumbai-40000l 2) Listing Manager, National Stock Exchange of India Ltd., Re: Jagran Prakashan Limited 'Exchange
Slide 2: Q4 & FY19 Result Presentation
Jagran Prakashan Limited Q4 & FY19 Result Q1FY17Presentation Result Presentation 1
Slide 3: 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 4: Management Commentary
Management Commentary Comment from Chairman and Managing Director “Operating performance was better than expected. Growth in advertisement revenue was in double digit after 11 quarters and as a result, the operating profit also registered growth in mid teens after a long time. The quarter benefited
Slide 5: IRS 2019 Q1
IRS 2019 Q1 4
Slide 6: What IRS 2019 Q1 says…
What IRS 2019 Q1 says… • Addition of 1.8 crore new readers since IRS 2017 • Hindi dailies have added 1 crore new readers over IRS 2017 taking total reader base to 18.6 crores Print Media going strong • Group: Total Readership of 9.19 Crores, growth of 6% over IRS 2017 Dainik Jagran is the Most Read
Slide 7: Reward to Shareholders
Reward to N mo ) ae) — oe) a= ed) oH an) a= op
Slide 8: An Attractive Shareholder Return
An Attractive Shareholder Return Dividend % 175% 175% 100% 200% 175% 150% 150% 175% (on FV) PAT 404.9 Dividend paid + Buy Back 350.8 349.3 308.0 302.3 310.9 274.2 254.7 226.2 207.8 178.3 164.0 128.6 128.6 137.4 114.7 93.4 52.7 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 BUY BACK of 1.50Cr BUY BACK
Slide 9: Business Highlights
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Slide 10: Group Key Highlights
Group Key Highlights Print: Double digit Ad Revenue growth after 11 Radio: Double digit CAGR with Highest Ever quarters Revenue, EBITDA and PAT • Upward revision in DAVP rates by 25% along with higher • Continues to grow more than the industry with 9% revenue Government Ads Pre-election pushed the g
Slide 11: MBL - Key Updates
MBL - Key Updates Update on Acquisition of Friends FM 91.9 ▪ Terminates Business Transfer Agreement dated 24 April 2019 with Ananda Offset Private Limited (Friends FM 91.9) on account of uncertainty of receipt of regulatory approval from MIB ▪ Original Sales Alliance with Friends FM 91.9 continues f
Slide 12: Acquisition of BIG FM
Acquisition of BIG FM Target Reliance Broadcast Network Limited Company Acquisition of 58 Pan-India Radio Stations; 40 Stations to be Retained, 18 Stations may have to be surrendered by RBNL Key Assets under law Valuation Enterprise Value* : Rs. 1,050 Crore, Equity Value* : Rs. 350 Crore • All Cash
Slide 13: Transaction Rationale
Transaction Rationale RadioCity India’s No.1 • Combined 79 Stations largest in the country, FM Foot Print of ~82% Radio Network • Market Leadership across all key markets in terms of listenership & advertising BIG FM – • Popular brand with 13 Years of presence, offering in the Retro Music format, wi
Slide 14: Business Performance
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Slide 15: New Generation Business Performance
De-Risked Business Model Operating Revenue Operating Profit Profit Before Tax Revenue Breakup – Q4 FY19 7% +9% New Generation Business Performance +58% +93% 1% 129 119 30 25 14% 19 13 Q4FY18 Q4FY19 Q4FY18 Q4FY19 Q4FY18 Q4FY19 78% CAGR: +12% CAGR: +22% CAGR: +35% 509 107 87 289 Print Radio Digital Ev
Slide 16: Print Business Performance
Print Business Performance ADVERTISMENT REVENUE OPERATING REVENUE +10% +8% 346 467 314 434 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 OPERATING PROFIT PROBIT BEFORE TAX +6% +7% 108 89 101 84 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 15
Slide 17: Print Business Quarterly Trend
Print Business Quarterly Trend ADVERTISMENT REVENUE OPERATING REVENUE +8% +10% 483 484 467 434 434 361 364 346 314 311 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 OPERATING PROFIT PROBIT BEFORE TAX +6% +7% 137 120 101 104 108 87 89 84 76 57 Q4 FY18 Q1 FY19 Q2 FY19
Slide 18: Print Business Performance – Operating Revenue
Print Business Performance – Operating Revenue DAINIK JAGRAN MID-DAY OTHER PUBLICATION* Print Business witnessed Ad Revenue Growth of 10% with +9% +1% -3% Dainik Jagran growing at 386 28 53 54 27 353 12% in Q4 Per copy realization in Dainik Jagran and Nai Dunia^ improving consistently; Improved by ~
Slide 19: MBL: Highest Ever Operating Performance
MBL: Highest Ever Operating Performance REVENUE EBITDA & Margin PBT & Margin 36.0% 39.0% 29.9% 34.4% +8% +17% +24% Highest ever EBITDA 82 32 28 27 Margin of 39.0% 76 23 Q4FY18 Q4FY19 Q4FY18 Q4FY19 Q4FY18 Q4FY19 PBT growth 3X of Revenue Growth; REVENUE EBITDA PROFIT BEFORE TAX Operating Leverage Play
Slide 20: Outdoor and Events Business Performance
Outdoor and Events Business Performance +14% +8% 39 148 34 136 Focus on Improving Profitability OPERATING REVENUE Q4 FY18 Q4 FY19 FY18 FY19 Strategy: +14% • Events: Continue to focus 6 on improving the bottom 3 line 5 OPERATING PROFIT • Outdoor: Improving the operating margins -2 FY18 FY19 Q4 FY18 Q
Slide 21: Digital Business Performance
Digital Business Performance +20% -10% 9 40 Performed best amongst 8 33 its comparable peers both in terms of revenue growth and reduction in losses OPERATING REVENUE Launched 2 regional language Q4 FY18 Q4 FY19 FY18 FY19 portals – Punjabi News Portal (punjabi.jagran.com) and Gujarat News digital ta
Slide 22: Softening of Newsprint Prices to Improve Profitability
Softening of Newsprint Prices to Improve Profitability Raw Material to Sales Other Expense to Sales 41% 39% 21% 38% 20% 21% 21% 22% 21% 36% 35% 20% 19% 35% 35% 36% Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Other costs kept No comp
Slide 23: Digital – Investing to Build Leadership
Digital – Investing to Build leadership Our Digital Media Portfolio Indian website in overall Healthcare Industry with • Digital Advertisement Revenue growth 6.4 Mn Unique Users for the year Ranked 3rd in Education category ✓ 20% YoY Print Digital Growth at #1 as per Unique mn unique Visitors Rs. 39
Slide 24: Financial Performance
Financial Performance
Slide 25: Mid-day Financial Performance
Mid-day Financial Performance Particulars (Rs. in Crs) Q4 FY19 Q3 FY19 Q4 FY18 Operating Revenue 26.85 28.21 27.69 Advertisement 20.01 21.21 19.89 Circulation 5.99 6.19 6.91 Other Operating Income 0.85 0.81 0.89 Expenses 23.68 25.98 23.59 Operating Profit 3.17 2.23 4.10 Operating Profit Margin 11.81
Slide 26: MBL Financial Performance
MBL Financial Performance Particulars (Rs. in Crs) Q4 FY19 Q3 FY19 Q4 FY18 Operating Revenue 81.87 87.02 75.93 Expenses 49.90 58.43 48.57 Operating Profit 31.97 28.59 27.36 Operating Profit Margin 39.05% 32.85% 36.03% Other Income 4.61 4.46 5.40 Depreciation 6.91 6.75 6.67 Interest 1.52 1.37 3.37 Pr
Slide 27: Operating Margin Break-up
Operating Margin Break-up Particulars (Rs. in Crs) Q4 FY19 Q3 FY19 Q4 FY18 Dainik Jagran* Operating Revenue 385.86 390.38 352.74 Operating Profit 107.95 98.81 96.75 Operating Margin 27.98% 25.31% 27.43% Other Publications* Operating Revenue 80.22 93.13 80.73 Operating Profit 0.60 5.28 5.23 Operating
Slide 28: Consolidated Profitability Statement
Consolidated Profitability Statement Rs In Cr Q4 FY19 Q4 FY18 YoY Q3 FY19 QoQ FY19 FY18 YoY Revenues 592.8 548.0 8% 613.8 -3% 2,362.7 2,304.0 3% Advertisement Revenue * 433.1 397.4 459.6 1,736.6 1,697.2 Circulation Revenue 109.6 107.4 108.0 437.6 432.6 Others 50.1 43.2 46.3 188.4 174.2 License Fees
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (Rs. In Cr) Mar-19 Mar-18 EQUITY AND LIABILITIES (Rs. In Cr) Mar-18 Mar-19 Non-Current Assets 1,879.2 2,051.3 Equity and Liabilities 2,101.7 2,287.1 Property, plant and equipment incl. CWIP 575.0 525.7 Investment Property Equity share capital 59.3 62.3 91.1 90.8 Goo
Slide 30: Group Introduction
Group Introduction Group Introduction
Slide 31: Value Proposition
Value Proposition PRINT RADIO DIGITAL Print Non Print Undisputed LEADER: Strong GROWTH FASTEST growing RIGHT mix of stability ✓ Dainik Jagran leads the IRS 2019 Potential: media: and scalability: Q1 rankings with a total ✓ Print Business continues to readership of 7.37 Cr ✓ Reaping benefits of geogr
Slide 32: Jagran Today
Jagran Today Print Digital Radio Jagran Prakashan Limited holds 72.81% of Music Broadcast Limited Activation OOH (RadioCity) 31
Slide 33: Multi Media Conglomerate – Width, Depth and Heritage
Multi Media Conglomerate – Width, Depth and Heritage Two #1* Print India’s Largest* 92+ mn* Dailies, Dainik Jagran Readers (Hindi) and Inquilab read daily- Dainik (Urdu) #11 News / Jagran Information Category 10 with over 45.2 mn Publications 13 Digital unique visitors Media Portals 5 Business No 1
Slide 34: Brand Strength – Stability, Consistency and Trust
Brand Strength – Stability, Consistency and Trust PRINT BUSINESS DIGITAL BUSINESS RADIO BUSINESS 33
Slide 35: Awards & Certifications
Awards & Certifications Recognizing Group’s leadership position in different fields of operations, various distinguished bodies have bestowed 10 Awards upon the Group during the quarter MBL Best Companies to Work National Water Awards Digixx 2019 2 awards for Dainik Jagran* 1 awards for 7 awards & R
Slide 36: Contact Us
Contact Us Jagran Prakashan Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L22219UP1975PLC004147 CIN: U74140MH2010PTC204285 Mr. Amit Jaiswal Ms. Payal Dave amitjaiswal@jagran.com Contact: +91 9819916314, Email: payal.dave@sgapl.net Ms. Jigar Kavaiya Contact: +91 9920602034, Email: jigar.kavaiya@sgapl