Nation Media Group Limited · NSEKE:NMG
Nation Media — FY2017 Earnings Presentation
41 slides from Nation Media's earnings presentation, Apr 18, 2018
Slide 1: Investor Briefing Full Year Results 2017
INVESTOR BRIEFING FULL YEAR RESULTS 2017 18TH APRIL 2018
Slide 2: F17 Highlights
F17 Highlights 2016 FULL YEAR HIGHLIGHTS DIVISIONAL RESULTS F17 Divisional UPDATES Updates 2016 GROUP BRIEFING F17 Group Results RESULTS Q& Q & AA
Slide 3: Business Objective
Business Objective Protect & grow New revenue current business streams Consumer Developing a sustainable culture Digital Focus Grow current business & foster a strong digital foundation for a sustainable, profitable future
Slide 4: Our Values
Our Values Continuous Consumer Focus Employer of Improvement & Choice Innovation Integrity & Trust Drive for Performance Inspiring leadership; Team work; Continuous improvement
Slide 5: 2017 Highlights, Divisional Updates, Group Results
2017 HIGHLIGHTS DIVISIONAL UPDATES 2017 GROUP RESULTS Q&A
Slide 6: Sustainability Agenda
Sustainability Agenda Focus on education NMG is committed to enhancing literacy in the country through the different programs it runs: Text Book Donations In 2017, NMG donated text books to underprivileged schools in: • Kisii County • Isiolo County • Mombasa County • Baringo County Over 2,000 pupils
Slide 7: Sustainability Agenda
Sustainability Agenda Focus on Education Newspapers in Education (NiE) 152 schools on the program through partnerships and direct subscriptions 18 counties NMG newspapers distributed through the initiative Approximately 62,000 pupils with access to the paper each week Awarded Best Company in Sustain
Slide 8: Sustainability Agenda
Sustainability Agenda Regional Activities - Uganda Rotary Uganda Hugh Masekela concert: To raise Mama Wange Health Camp: funds for the construction Partnered with health of a blood bank at Mengo organizations to conduct free Hospital and a trauma screening for breast cancer, centre full body checks
Slide 9: Kenya Buzz: Redesigned product-offering lifestyle experiences
Kenya Buzz: Redesigned product-offering lifestyle experiences • Revamped website- Unique users moved from 87,000 in Jan 100% cinema presence on 2017 to 155,000 in March 2018 the ticketing platform • Circulation grew from 10,000 to 20,000 Event focused A calendar of thematic approached editions with
Slide 10: NTV Programming
NTV Programming NTV ranked as the channel that provided the most equitable, diverse and balanced coverage of the 8 August 2017 Elections by European Union Election Observer Mission
Slide 11: International Awards - 2017 Kenya Awards - 2017
International Awards - 2017 Kenya Awards - 2017 11
Slide 12: Uganda Awards - 2017
Uganda Awards - 2017 D8 5B BD 3 Uganda Media Women’s African Centre for Media Best Writer FUFA Human Rights Awards 2017 Uganda Biotechnology Media Recognition of outstanding Association (UMWA) Awards Excellence Uganda National women cup in various categories Awards in various categories journalism o
Slide 13: Tanzania Awards - 2017
Tanzania Awards - 2017 D8 3 Assistant News Editor Online and New Content Good governance Senior Reporter News analysis Human Rights and Good Editor Tourism and Conservation reporter Business, and Current affairs Governance and Culture and Sports Economy and Finance
Slide 14: The Business Daily was re-launched in March
The Business Daily was re-launched in March • Data driven content • Use of infographics • Lighter read • Better design (Use of colour & photos)
Slide 15: Top 40 under 40, Top 100 Mid-sized companies
Top 40 under 40, Top 100 Mid-sized companies
Slide 16: Seeds of Gold Farming Clinics
Seeds of Gold Farming Clinics Entry with a copy of • 5 Farming clinics were held in 2017 Saturday Nation • Participation from sponsors such as KARLO, Yara, Acre Africa, Kaguru Farm, Egerton University
Slide 17: Innovations
Innovations Nation Chat Bot Kenya Buzz Ticketing Apple News Format Prize Competition Health Magazine Nation News App
Slide 18: March 2017
March 2017 26.1 30 7.9 7.9 45.4k 16.9k 18.2 22.1
Slide 19: March 2018
March 2018 32.3 30 8.96 7.9 18.9k 16.9k 23.3 22.1 Digital footprint has grown 24% in the last 12 months
Slide 20: Statistics on Suswa Video
Statistics on Suswa Video • 5M YouTube views • 1,052 YouTube comments • 16,158 shares on YouTube • 1,987 additional YouTube subscribers • 1,200+ Facebook Shares • 172k+ Facebook views
Slide 21: Multi-channel Publishing System
Multi-channel Publishing System Multi-channel publishing Converged publishing workflow Multichannel Publishing System New-age consumer Print Distribution 21 Capex Investment: Kshs. 150 Million
Slide 22: Key Appointments
Key Appointments Managing Director, Managing Director, Nation Newspapers Division Broadcasting Division
Slide 23: Nation Leadership Forum
Nation Leadership Forum 3rd 3 April 2017: April 2017: Attendees: 500+ Hungry Hungry and are and Thirsty: are Kenya’s Thirsty: What Kenya’s options options What 1 Social Media Reach: 49 million Partners: 5 corporate partners 29 June 2017: Attendees: 400 + Kenyan Elections: Voters & Leadership 2 Socia
Slide 24: Newspapers in Education (NiE)
| Newspapers in Education (NiE) Juniorspot Launch Juniorspot Market Feedback “One observes Daily Nation has given a wide slot for the interest of those of school - going age. Internal Staff Clearly, this provides for intellectual stimulation. Activation Youngsters can peruse vital - details - this a
Slide 25: Efficiency & Effectiveness
Efficiency & Effectiveness New revenues from new press capability; Speed to market Optimised route to market; Early market arrivals; Reduced return levels Efficient press; distribution market intelligence; lean operations Cost and Debt Management Regional stations; Greater audience reach; Brand Equi
Slide 26: 2017 Business Overview
2017 Business Overview Challenging business Declining advertising Declining circulation Delays in payment revenues environment volumes (KE, UG, TZ) especially - government Strong election Business reorganisation Converged structure – Stable NMG Share Price coverage Digital first Contribution: 1.5% i
Slide 27: 2017 Highlights, Divisional Updates, Group Results
2017 HIGHLIGHTS 2017 DIVISIONAL UPDATES 2017 GROUP RESULTS Q&A
Slide 28: Print
Print DIVISION NND TEA BD MPL MCL REVENUE 10% 21% 11% 3% 12% DIRECT COSTS 1% 9% 10% 1% 13% OPERATING RESULTS 34% >100% 47% >100% >100%
Slide 29: Television
Television DIVISION REVENUE 12% 5% DIRECT 14% 14% COSTS OPERATING RESULTS 58% 52%
Slide 30: Digital
Digital DIVISION KENYA REVENUE 42% DIRECT COSTS 9% OPERATING RESULTS >100%
Slide 31: 2017 Highlights, Divisional Updates, Group Results
2017 HIGHLIGHTS 2017 DIVISIONAL UPDATES 2017 GROUP RESULTS Q&A
Slide 32: Turnover Trend (Kshs M)
Turnover Trend (Kshs M) 13,374 13,351 (6.2%) 14,000 12,347 12,340 11,246 11,325 12,000 10,625 10,000 8,000 6,000 4,000 2,000 - 2011 2012 2013 2014 2015 2016 2017
Slide 33: Cost of Sales (Kshs M)
Cost of Sales (Kshs M) 2,861 3,000 2,660 2,699 2,539 2,452 10% 2,500 2,057 2,000 2,000 1,807 1,500 1,000 500 - 2010 2011 2012 2013 2014 2015 2016 2017
Slide 34: Consolidated Statement of Comprehensive Income (Kshs M)
Consolidated Statement of Comprehensive Income (Kshs M) 2017 2016 % Change Turnover 10,624.9 11,324.8 (6.2) Profit before Income tax 1,954.6 2,460.0 (20.5) Income tax expense (643.8) (771.1) 16.5 Other comprehensive income 40.1 (54.2) 174.0 Total Comprehensive Income for the year 1,350.9 1,634.7 (17
Slide 35: Consolidated Statement of Financial Position (Kshs M)
Consolidated Statement of Financial Position (Kshs M) 2017 2016 Capital and reserves Share capital 471.4 471.4 Other reserves (72.5) (112.5) Retained earnings 6,302.3 6,882.9 Proposed dividends 1,414.1 1,414.1 Non-controlling interest 51.0 47.0 Total equity 8,166.3 8,702.9 Non-current liabilities 25
Slide 36: Condensed Cash Flow Statement (Kshs M)
Condensed Cash Flow Statement (Kshs M) 2017 2016 Cash generated from operations 3,296.4 2,245.6 Tax paid (1,112.4) (93.4) Net cash from operating activities 2,184.0 2,152.2 Net cash generated/ (used) in investing activities 45.3 (122.5) Net cash used in financing activities (1,885.5) (1,923.6) Incre
Slide 37: Earnings Per Share (Kshs)
Earnings Per Share (Kshs) 13.3 13.4 13.1 12.7 11.8 9.8 8.9 6.9 2010 2011 2012 2013 2014 2015 2016 2017
Slide 38: Dividend
46 Dividend ae) Nation Media Group
Slide 39: Dividend Trend
Dividend Trend 12 Dividends per Share (Kshs) 10.00 10.00 10.00 10.00 10.00 10.00 10 8.00 8.00 8 6 5.50 5.50 4 2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Dividend rate maintained at 10.00 per share
Slide 40: Highlights, Divisional Updates, Q & A
2016 HIGHLIGHTS 2016 DIVISIONAL UPDATES 2016 H1 GROUP RESULTS Q&A
Slide 41: www.nationmedia.com
ie) Nation Media Group ATION O© he EastAfric BUSINESS DAILY DAILY®NATION ntv The EastAfrican i) THECITIZEN NV LEO nd gembe: BE MWANANCHI em KENYA WN Soarkq NATION «i www.nationmedia.com