Tips Music Limited · NSE:TIPSMUSIC
Tips Music — Tips Industries — FY2021 Earnings Presentation
24 slides from Tips Music's earnings presentation, Jun 15, 2021
Slide 1: Submission of Presentation of Analysts/Investors Meeting
June 15, 2021 To, To, Listing Department Listing Department BSE Limited National Stock Exchange of India Limited P.J Towers, Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Fort, Mumbai – 400 001 Bandra Kurla Complex, Bandra (E), Mumbai – 400 050 Scrip Code: 532375 Symbol: TIPSINDLTD
Slide 2: Tips Industries Limited Investor Presentation
Tips Industries Limited Investor Presentation June 2021
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Tips Industries Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or in
Slide 4: Music Industry…
Music Industry… 20 billion In 2022 # 19 # 14 India’s rank in the India’s rank in the global music market global digital revenues ✔According to YouTube, musicians owned the majority of videos that have achieved more than 1 billion lifetime views and/or have made it to the top 10 +10% CAGR most watche
Slide 5: …is bound to grow
…is bound to grow 4Bn new connected consumer devices to be added Strong growth in India’s digital userbase with 90% of new users to have vernacular affinity and Tier-2/3/rural shoppers to be by 2025 globally over 1.6x of Metro/Tier-1 shoppers by 2023 Devices in Billion Users in Millions 2.0 1,050 82
Slide 6: Music is the most valuable content
Music is the most valuable content Ranking on repeated monetization Music is now an internet business *20% Content that can be 2% Music monetized multiple times naturally commands 11% 2020 greater economic value Films 68% Web Series Internet Sync Performance *Physical Rights Music ranks at the top o
Slide 7: Digital Advertising – Key Driver of Indian Music Industry
Digital Advertising – Key Driver of Indian Music Industry Indian Digital Ad Industry AD spends on Digital Media format INR Crs INR Crs Other incl. Classifieds 4% 58,550 Display Social Media +27% 21% 28% CAGR 28,249 22,156 17,377 13,683 22% 10,859 8,202 Onine Video 6,228 25% Paid Search 2016 2017 201
Slide 8: Ecosystem Supporting Growth
Ecosystem Supporting Growth Convenience Smart Phone Listeners no longer need to carry Only 450mn smartphone connections in India so far. separate devices; smartphone apps Increasing smartphone penetration in urban as well as make music available 24x7 with a tap rural India will lead to high data con
Slide 9: Company Overview
Company Overview Established in 1988, Tips Industries is one of the Largest corporate houses in the field of music and films Catalogue is licensed to Collection of Consistent success in creating and acquiring • OTT platforms high quality music I.P.R. over 29,000 songs • Content Aggregators • TV Chan
Slide 10: Corporate Philosophy
Corporate Philosophy Our Vision To maintain and grow a MUST HAVE HITS catalogue Our Mission To create, acquire and deliver quality music to a wide range of audiences Our Purpose Deliver Entertainment Our Core Values •Honesty •Commitment •Teamwork •Passion •Positive attitude 9
Slide 11: …generating multiple revenue streams
…generating multiple revenue streams Large and diversified music library Rich content can be leveraged to generate multiple Our catalogue comprises film, non-film, pop, annuity revenue streams via following remixes devotional songs and bhajans, created by some of the leading artistes and musicians o
Slide 12: Two Pronged Content Acquisition Strategy
Two Pronged Content Acquisition Strategy Our endeavour to add right content for larger target audience Content Cost Produce Strategy Content acquisition cost is only funded • To introduce promising singers (TIPS) is through internal accruals in our DNA • We have a strong A&R team which engages with
Slide 13: Growing listenership & Increasing Content Addition
Growing listenership & Increasing Content Addition New Songs Added Evergreen & Rich content of 215 over 29,000 songs across genres, languages & 100 decades giving us high visibility of music revenue FY20 FY21 Existing Content + Continuous Additions : Increasing Music Revenue Youtube Views (in. Mn) Y
Slide 14: Financial Highlights
@ug Financial Highlights
Slide 15: Update on Demerger of Films Business
Update on Demerger of Films Business ✔Demerger of Films Business ▪ On the recommendation of the Audit Committee and the Committee of Independent Directors, the Board of Directors of the Company at its meeting has inter-alia, considered and approved to restructure the business of the Demerged Company
Slide 16: Segmental Performance
Segmental Performance Revenue (Rs. in Crs) EBIDTA (Rs. in Crs) EBIDTA Margins (%) +29% +27% 97.9 77.2 84.0% 78.9% 80.5% 90.5 72.9 Music 71.5% 66.7 47.7 42.6 35.8 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Revenue (Rs. in Crs) EBIDTA (Rs. in Crs) FY18 FY19 FY20 FY21 136.5 -4.7 Film -
Slide 17: Q4 & FY21 Profit & Loss Statement
Q4 & FY21 Profit & Loss Statement Particulars (Rs. in Crs) Q4 FY21 Q4 FY20 Y-o-Y FY21 FY20 Y-o-Y Income Revenue From Operations 27.6 18.5 49.3% 90.5 91.0 -0.5% Other Income 2.9 0.7 4.9 17.8 Total Income 30.5 19.2 95.4 108.8 Cost of Production / Distribution of Expenses 0.0 1.3 0.0 28.7 Employee Bene
Slide 18: Consolidated Historical Profit & Loss Statement
Consolidated Historical Profit & Loss Statement Particulars (Rs. in Crs) FY 21 FY 20 FY 19 FY 18 Income Revenue From Operations 90.5 91.0 203.2 47.5 Other Income 4.9 17.8 4.5 2.4 Total Income 95.4 108.8 207.7 49.9 Cost of Production / Distribution of Expenses 0.0 28.7 162.2 17.5 Employee Benefits Ex
Slide 19: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. in Crs) Mar-21 Mar-20 Mar-19 Mar-18 Particulars (Rs. in Crs) Mar-21 Mar-20 Mar-19 Mar-18 ASSETS Equity Non-Current Assets Equity Share Capital 13.0 14.3 14.3 14.3 Property, plant and equipment 2.0 1.8 2.1 1.8 Other Equity 88.3 66.1 56.4 55.4 Investment Pro
Slide 20: Abridged Consolidated Cash Flow Statement
Abridged Consolidated Cash Flow Statement Particulars(Rs. in Crs) Mar-21 Mar-20 Mar-19 Mar-18 Net Profit Before Tax 59.2 14.4 7.3 4.0 Adjustment for Non-Operating Items -0.5 14.4 1.9 8.1 Operating Profit/(Loss) Before Working Capital Changes 58.7 28.7 9.2 12.1 Adjustment for WC -4.6 5.6 19.2 30.9 Ca
Slide 21: Key Ratios
Key Ratios Cash Flow from Operations (Rs. in Crs) Net Cash Company (Rs. in Crs) Cash & Cash Equivalents Borrowings 43.3 41.2 51.5 30.5 25.0 31.9 18.7 8.0 9.4 2.0 1.9 0.0 Mar-18 Mar-19 Mar-20 Mar-21 Mar-18 Mar-19 Mar-20 Mar-21 ROCE (%) ROE (%) 87.4% 42.9% 26.2% 14.1% 13.2% 14.9% 4.5% 4.0% Mar-18 Mar-
Slide 22: Music Industry today
Music Industry today Music Monetization: Rising adoption of Investments in Music: subscription: Digital Piracy: • Music labels own IPR for their repertoire • FICCI–EY Media & Entertainment Report • Technology has disrupted piracy the • Music labels acquire music rights for for 60 years as per the Co
Slide 23: Music Industry Business Model
Music Industry Business Model Music Creators Film Producer Music Label Streaming platforms Business Model Music creators include Film producers use these Music labels owns the IPR Streaming platforms licence lyricists, composers, and compositions in films and sell (Intellectual Property Rights) the
Slide 24: Thank You
Company Details: Tips Industries Limited Thank CIN: L92120MH1996PLC099359 Email id: investorrelations@tips.in You Investor Relations Orientcapital Advisors: (a division of Link Intime India Pvt Ltd) Ms. Payal Dave: +91 9819916314 payal.dave@linkintime.co.in Ms. Neha Shroff: +91 7738073466 neha.shrof