Saregama India Limited · NSE:SAREGAMA
Saregama India — Investor Presentation (October 2019)
42 slides from Saregama India's investor presentation, October 2019
Slide 1: Saregama India Limited Corporate Presentation October 2019
SAREGAMA INDIA LIMITED CORPORATE PRESENTATION | OCTOBER 2019
Slide 2: Snapshot
Snapshot India’s oldest music label and youngest film production house Producing digital thematic High Dividend Yield and a Zero films targeted at the youth Debt Company segment Leading producer in terms of Strong and professional number of hours of content management team with produced for Tamil te
Slide 3: Strategic Overview
Strategic Overview Rising Rising Falling Rising Individual Falling Smartphone SmartphoneOwnership Ownership Data Prices based Content Piracy 450-500M 450-500M > Rs3/GB Consumption Content Consumption thru Legal means Going Up Indians spent 30% of their phone 325M people viewed video online in Avg. d
Slide 4: Strategic Overview
Strategic Overview Saregama’s Saregama’s long term long term strategy : Tostrategy is toPlay be a Pure be aContent pure play content capitalising Company company capitalising on the on the global data data boomentertainment driven globally boom Higher monetisation of Existing IP to fund IP Creation
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 4% 14.3% 2,318 87 5.1% FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 *Capital Employed = share capita. security premium & free reserves CAGR Total Revenue 53% CAGR PAT 175% 5
Slide 6: Company Overview
COMPANY OVERVIEW oS
Slide 7: Company Overview
Company Overview Revenue from Operational • Saregama India Ltd., a RP Sanjiv Goenka Group Company, is India's oldest music label, youngest film (In INR Mn) studio and a multi-language TV content producer. Over the years, the Company has expanded its 5,447 business from audio to films, TV serials, pu
Slide 8: The Saregama Heritage
The Saregama Heritage • Saregama, the erstwhile HMV India, • In 1946, it was incorporated as a Private Limited company with the has been in the entertainment name of ‘The Gramophone Co. (India) Limited’ business for 117 years and was initially established as a branch of 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 Group Chairman Non-Executive Director Non-Executive and Non-Executive and Non-Executive and Non-Executive Non-Executive Director Independent Director Inde
Slide 10: Awards & Accolades
Awards & Accolades HAMID KD AJJI Inovation Awards 2019 Spikes Awards 2018 Marquees 2018 National Awards UK Asian Film Festival Beaune film festival The Economic Times Tangrams Effectiveness Reimagining for the Best Urdu Film Best Director: Best Film Award (fresh Best Child Actor: Madhumita blood com
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 847 389 118% 159 PAT 543 283 92% 87 Revenue (
Slide 12: Business Overview
BUSINESS OVERVIEW 6 | = =~
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. FY19 Revenue Share Business
Slide 14: Music Segment
MUSIC SEGMENT AL \\ \\b 5 -) &
Slide 15: Music Industry
Music Industry • Indian Music industry was estimated at INR 14.4 Bn in FY18, having Indian Music Industry size grown at a 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 29.6 smartphone popularity. Contrary to the popular b
Slide 16: Piracy
Piracy • Piracy continues to be one of the major issues affecting the Indian film & Music industry Piracy rates across global 10 countries with annual loss of revenues to around INR 180 Bn. Italy 35% Poland 40% • Pirated content continues to be the most popular source of music. Indians visited websi
Slide 17: Saregama Music IP
Saregama Music IP Music Revenue (INR Mn) • Saregama is the oldest music label in India, with the largest Era wise breakup in consumption of library of songs under its bouquet. A typical movie has 5 Songs songs. Assuming a music label acquires 1000 movies in an 2,948 year, it will get 5,000 songs. By
Slide 18: Film Music IP…best of 20th Century
Film Music IP…best of 20th Century 90s Iconic Late & 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… Music from 150+ 1,800+
Slide 20: Diversified Music Monetising Platforms
Diversified Music Monetising Platforms SAREGAMA’S MUSIC INTELLECTUAL PROPERTY PHYSICAL (handled directly by Company) Digital Publishing Societies DIGITAL OTT TV Channels PPL Radio Public Performance of Sound (handled through 3rd YouTube recordings party licensing) Brand Advertisements Telecom Digita
Slide 21: Music IP Monetisation - Carvaan
Music IP Monetisation - Carvaan Units Sold (‘000s) 297 250 229 214 219 164 • The Company launched a breakthrough product called ‘Carvaan’, which is a portable digital music player with inbuilt stereo speakers and preloaded music. • Carvaan has multiple variants across languages (Hindi, Tamil, Bengal
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 Number of OTT Streams (Mn) The company’s evergreen catalogue remains the preferred choice for digital platforms, brand advertisements and general entertainment TV channels. 1,447 1,573 1,413 OTT 1,024 1,076 889 • Saregama licenses its music to various OTT pla
Slide 24: Music IP Creation: Process
Music IP Creation: Process 6. 1. Lip sync vs How many background. streams can In-film vs be promotional monetised 5. Music CRITERIA 2. (audio & FOR Track record video) SELECTION of Singers & production OF MUSIC Actors quality 3. 4. Kind of Marketing songs strength of (romantic, Producer sad, sufi, c
Slide 25: Music IP Creation: Last 24 months
Music IP Creation: Last 24 months 25
Slide 26: TV & Films Segment
TV & FILMS SEGMENT
Slide 27: Film Industry
Film Industry • The films business has witnessed growth courtesy expansion of overseas markets, increase Online Video Audience in India in regional content and a rise in acquisitions of the digital content by Over The Top (OTT) will double by 2020 (Mn) platforms. 500 • The global OTT players are mak
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 nucleus on an audience segment of 18 to 35 years. • Yoodlee films, as a brand, will be seen as a serious player that will help
Slide 29: Video IP Creation & Monetisation: TV Serials
Video IP Creation & Monetisation: TV Serials The revenue stream is through advertising slot sales. The Company also markets third party serials for a revenue share. Saregama continues its leadership in Tamil (Sun Network) in the after noon prime time with highest TRP. • Saregama is the leading TV co
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 Digital B2B • Saregama’s overall B2B revenues will grow at 25% yoy. This will be driven by growth in OTT platforms (40%-42%) and Publishing(18-20%) FY 19-20 • Acquisition of new music content will boost digital licensing businesses Estimated Licensing Growth • Industry organizations li
Slide 34: Financial Overview
FINANCIAL OVERVIEW (7 | We (Ss P25
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 823 41
Slide 36: Standalone Balance Sheet
Standalone Balance Sheet Equity and Liabilities (INR Mn) FY19 FY18 FY17 Assets (INR Mn) FY19 FY18 FY17 Shareholders Fund Non Current Fixed Assets (a) Property, Plant and Equipment 2056 1,881 1,893 (a) Equity Share Capital 174 174 174 (b) Investment Properties 24 24 25 (b) Other Equity 4087 3,647 3,2
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 847
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% 6,011 8% 15% 949 543 3,668 11% 283 4% 2,318 543 87 254 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 EBITDA EBITDA Margin (%) PAT PAT Margin (%) Diluted EPS PE Ratio ROCE* 31.2 22.2% 47.7
Slide 40: Capital Market Data
Capital Market Data 30% 20% 10% 0% -10% -20% -30% -40% Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Saregama Sensex Shareholding Pattern as on 30th September, 2019 Price Data (As of 30th September, 2019) INR Face Value 10.0 Market Price 345.7 Others 37.1 52 Wee
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
THANK YOU
Saregama India — Investor Presentation (October 2019) on 6ix