Ht Media Limited · NSE:HTMEDIA
Ht Media — Investor Presentation (December 2009)
44 slides from Ht Media's investor presentation, December 2009
Slide 1: Investor Presentation
Investor Presentation December 2009
Slide 2: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is set to grow Growing population & literacy will continue to foster print in India Consuming g class is expected p to grow g manifold in next few years y as the fundam
Slide 3: Demographics in India provide a strong opportunity for Print Media to grow
Demographics in India provide a strong opportunity for Print Media to grow Urban Rural Total Population 272 590 862 (millions) Literacy % Literacy% 83% 62% 68% expected to go up Readership (% 42% 21% 29% of literates) Current penetration levels are low amongst the literates Source: IRS 2009 R2; Age
Slide 4: Ad intensity is poised to increase as consumption grows
Ad intensity is poised to increase as consumption grows India – Adex/ consumption vs. consumption per capita 0 7% 0.7% • With increasing 0.6% Consumption growth consumption, India should outstripping ADEX witness an increase in 0 5% 0.5% growth g Adex as witnessed in other 1998-99 developing countri
Slide 5: India is close to the inflexion point; Russia and China has shown a similar trend
India is close to the inflexion point; Russia and China has shown a similar trend Russia: Rapid increase in ADEX with China: Strong ramp up in ADEX economic recovery post 1999 growth with income level changes 1999-2006 DATA 1983-2006 DATA 1.80% 1.20% ex as % of privvate consumpttion ex as % of privv
Slide 6: Advertisement pie is set to increase manifold across mediums
Advertisement pie is set to increase manifold across mediums Segments where HT is present CY 2008 Ad revenues CY 2011 Ad revenues Per cent Per cent T l revenue ~Rs. Total R 222 b bn T l revenue ~ Rs. Total R 297 b bn Internet Internet Advertising Advertising New media to 5% Radio 3% increase shares
Slide 7: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is set to grow Growing population & literacy will continue to foster print in India Consuming g class is expected p to grow g manifold in next few years y as the fundam
Slide 8: HTML has transformed itself to a diversified multimedia company
HTML has transformed itself to a diversified multimedia company Today HTML is established Transformation journey in following domains 2007 English daily Launched Print Hindi daily Mint Business daily Magazines 2006 Entry into Job portal radio Digital Mobile 1986 2008 advertising Mu
Slide 9: Across various platforms, HTML offers compelling proposition to advertisers
Across various platforms, HTML offers compelling proposition to advertisers Total Readership of 34m & Average Issue Readership of ~13 13 m across print i t publications bli ti with ith attractive tt ti CPT 1 39 1.39 15,361 , 1.27 11,491 1.16 9,296 7,833 Reach 4,312 CPT 0.55 2,681 3,029 0.42 0.47 0 3
Slide 10: Historical financial performance
Historical financial performance CAGR - 26% CAGR - 62% CAGR - 26% Rs. in millions, * FY 04 for 9 months 10
Slide 11: Despite the recent headwinds, HTML has been able to maintain its margins
Despite the recent headwinds, HTML has been able to maintain its margins Revenue Revenue growth (YoY) 4,000 20% Drastic shrinkage 3,417 3,439 3,416 3,510 17% 17% 3 500 3,500 3,272 3 272 3 257 3,329 3,393 3,257 in Ad markets 16% 15% 15% 2,845 2,895 across media 3,000 12% 13% 2,500 12% 2,000 1,500 8%
Slide 12: Headwinds faced in FY 2009 are fading away
Headwinds faced in FY 2009 are fading away Headwinds in FY 2009 Going forward • Rising international newsprint • International newsprint prices are down by costs ~40% • High investment in Hindustan • Hindustan set to grow and double its contribution • Profitability under pressure due to new business
Slide 13: HT Media: well positioned for rapid growth
HT Media: well positioned for rapid growth Strengths & Opportunity Outcome Superior & professional Second largest g English g daily y having g management strong presence in key markets Partnerships with global Leadership position in Delhi corporations Strong contender in Mumbai WSJ, Virg
Slide 14: We have built successful partnerships with world class organizations
We have built successful partnerships with world class organizations Business Paper in partnership with Wall Street Journal; exclusive agreement with WSJ to publish Journal-branded news and information in India 2nd largest readership among business papers within one year of launch (2007) FM Ra
Slide 15: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is set to grow Growing population & literacy will continue to foster print in India Consuming g class is expected p to grow g manifold in next few years y as the fundam
Slide 16: Through its print offerings, HT Media reaches ~13 million readers across geographies
Through its print offerings, HT Media reaches ~13 million readers across geographies Geographic Coverage of HT Media Print Business Readership of Editions (in ‘000s) Regions Covered Hindustan Hindustan Mint Times Delhi NCR 2,136 1,302 123 Uttarakhand Bihar / 117 5,527 - Chandigarh Jharkhand UP Bihar
Slide 17: Delhi & Mumbai comprises more than 50% of total English dailies market in India
Delhi & Mumbai comprises more than 50% of total English dailies market in India Total Print Ad Revenue for CY 2008 ~Rs. 108,000 mn* 43% Other Markets 57% Delhi & Mumbai Source: Group M, HT Estimates * Based on estimates of Group M, KPMG – FICCI , Zenith optiomedia & Pitch Madison 17
Slide 18: Hindustan Times continues to have a strong presence in Delhi
Hindustan Times continues to have a strong presence in Delhi HT Delhi ToI Delhi 000s) 2200 2100 eadership (in ‘0 2000 1900 1800 1700 Re 1600 R2 2006 R1 2007 R2 2007 R1 2008 R2 2008 R1 2009 R2 2009 Strong Readership & Circulation initiatives to retain & lead market shares to continue HT re-launch
Slide 19: Hindustan Times is the fastest growing daily in Mumbai over last 2 years
Hindustan Times is the fastest growing daily in Mumbai over last 2 years 1719 1750 1571 TOI HT DNA 1524 1520 00s) 1666 1553 1461 1553 dership (in ‘00 673 705 683 603 622 Read 501 548 526 503 409 320 381 354 270 0 R1'06 R2'06 R1'07 R2'07 R1'08 R2'08 R1'09 R2'09 Our strategy Continue to lead expan
Slide 20: Why the Relaunch?
Whyy the Relaunch? Delhi’s largest, Mumbai’s fastest growing, strong presence across North India High credibility, strong imagery as a ‘leading’ newspaper However, lower share in younger age However groups Strong need to remain relevant among the young Take advantage of the massive & growi
Slide 21: Objective of the Relaunch
Objective of the Relaunch 1 Delhi – Convert leadership into dominance Delhi Market Gain ‘top top-of-mind of mind’ recall and preference among dual newspaper readers Become an aspiration brand among younger readers I Increase loyalty l lt among allll existing i ti readers d Increase readers
Slide 22: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is set to grow Growing population & literacy will continue to foster print in India Consuming g class is expected p to grow g manifold in next few years y as the fundam
Slide 23: Hindustan is the third largest Hindi daily with dominant presence in large markets
Hindustan is the third largest Hindi daily with dominant presence in large markets Delhi Regions Covered 1 NBT 1.NBT Readership Largest 2.Hindustan Punjab 1.Amar Ujala UP (in million) Market 1.Jagran 2.Jagran 2.Amar Ujala 3.Hindustan Bihar Dainik Jagran 16.1 UP Chandigarh 1.Hindustan 2.Jagran Dainik
Slide 24: Hindustan has strong presence over 50% of Hindi daily market
Hindustan has strong presence over 50% of Hindi daily market Print Ad Market – Rs. 108,000 mn Hindi Ad Market – Rs. 20,000 mn Segments where Others HH is present 5% Delhi Punjab j 10% 10% Bihar & Jharkhand 10% Rajasthan 17% UP & Uttarakhand 31% MP 17% Source: Group M report CY 2008 24
Slide 25: Hindustan – gaining position year on year
Hindustan – gaining position year on year Highlights R ki Ranking Leading Hindi daily with readership in excess of 9 million; No. 3 all over India 04 05 06 07 08 First ever All – Colour Hindi newspaper 1 1 1 1 1 Received various awards in last 12 2 2 2 2 2 months 3 3 3 3 3 Asia Media Award –
Slide 26: Hindustan: well positioned for rapid growth
Hindustan: well positioned for rapid growth Strengths & Opportunity Outcome H it Heritage /T Trustworthy t th brand b d Continues C ti tto grow very strongly t l iin all markets Superior quality across Hindi newspapers Leadership attained in L k Lucknow, Jh Jharkhand kh d Highly respected
Slide 27: Superior product has helped us succeed in new markets against established competition
Superior product has helped us succeed in new markets against established competition Uttarakhand case study Our Strategy Impact / Result Background Used to be a strong franchise of Amar Ujala & Dainik Jagran Circullation (in 000) Hindustan launched on 23 May 08 What we did Creating strong
Slide 28: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is set to grow Growing population & literacy will continue to foster print in India Consuming g class is expected p to grow g manifold in next few years y as the fundam
Slide 29: Mint has significant potential to grow in business dailies segment
Mint has significant potential to grow in business dailies segment Attractive opportunity for Mint to tap Market dominated byy one p player y with a ~60% share of revenues Opportunity to garner significant share of market by occupying a strong t #2 position iti Strategy adopted to tap this v
Slide 30: Effective strategy yielding results in building strong reader proposition & gaining revenue traction
Effective strategy yielding results in building strong reader proposition & gaining revenue traction Del, Mum, Readership Established No.2 with strong and AIR B'lore Share differentiated reader proposition; supported ET 379 60 % by a distinct and well segmented readership base Mint 157 25 % Worl
Slide 31: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is set to grow Growing population & literacy will continue to foster print in India Consuming g class is expected p to grow g manifold in next few years y as the fundam
Slide 32: FEVER – A High Impact Radio Station
FEVER – A High Impact Radio Station Differentiated positioning: Less Talk More Music….Format radio station Targeted at SEC AB, AB between 25-34 25 34 years of age Collaboration with Virgin enabling operational excellence A leadership team of global radio experts with a track record of succes
Slide 33: Consolidating its position in Delhi
Consolidating its position in Delhi Share% in Delhi Focused approach in Delhi has yielded results Consolidating its number 2 position in Delhi (largest 24.3 Ad market for Radio 24.9 19.9 industry) 16.1 Reduced the gap 8.7 8.7 9.5 8.7 6.9 6.9 from No.1 6.3 66.55 significantly i ifi tl in i this
Slide 34: Fastest growing in Mumbai & Bengaluru
Fastest growing in Mumbai & Bengaluru Share% in Mumbai Share% in Bengaluru 18.2 18.7 15.0 17.3 19.6 15.7 15.8 16.9 15 3 15.3 12.2 11.9 13.811.7 12.0 13.4 14.0 11.1 6.7 10.5 10.18.4 8.2 8.0 5.9 2.1 2.9 2.5 2.9 Mirchi Red Big City Fever One Meow Big Mirchi Fever City One Red Indigo Q1 FY 10 Q2 FY 10 Q
Slide 35: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is set to grow Growing population & literacy will continue to foster print in India Consuming g class is expected p to grow g manifold in next few years y as the fundam
Slide 36: Internet: strong foundation for growing portfolio
Internet: strong foundation for growing portfolio Ranked amongst Ten best news websites in the world by Forbes.com in 2007 Ranked #1 in Technology by PC World India Web Awards in 2007 and 2008 In order to give more focus to Internet, a separate subsidiary Rapidly growing page views – 25 mill
Slide 37: Plan to tap huge value pool through classifieds portals
Plan to tap huge value pool through classifieds portals Market size Entered online jjob market in June 08 Rs. mn with a differentiated offering – shine 33,000 Shine - journey so far… Over 3 million profiles 15+ million page views and 2 21,000 million unique visitors per month 80% database
Slide 38: Shine is the most comprehensive job portal in India
High Shine is the most comprehensive job portal in India Low Feature Shine Naukri Monster Timesjobs Job & Candidate Matching Capability Invisibility & Anonymity Recruitment Workflow Management Robustness of registration process Salary Sa a y Su Survey ey functionality u ct o a ty Communities Databas
Slide 39: Foray in Mobile marketing and Advertising through Joint Venture with Velti
Foray in Mobile marketing and Advertising through Joint Venture with Velti, to provide an integrated offering First large media company to enter in mobile marketing 65:35 JV with Velti 1 Planning plc , a company g 2 Execution listed in London Stage E ti 3 Reporting Stage Stage Velti plc is a l
Slide 40: Mobile marketing and advertising with comprehensive set of services across mobile platform
Mobile marketing and advertising with comprehensive set of services across mobile platform Mobile Marketing Activities: The use of the mobile channel for brand- building activities that raise awareness of a brand in mobile consumers minds Mobile On-pack Mobile Blogging/ Location Based / User Generat
Slide 41: HTML addresses a large & growing value pool through its portfolio of strong businesses
HTML addresses a large & growing value pool through its portfolio of strong businesses HTML addresses a large value pool that is set to grow Growing population & literacy will continue to foster print in India Consuming g class is expected p to grow g manifold in next few years y as the fundam
Slide 42: HT Burda - high end publishing space
HT Burda - high end publishing space Introduction to Burda Opportunity & Rationale Progress made so far Second largest Media Development of local & 51:49 JV set up company in Germany having overseas market for high Backend Prepress & end printing 100+ years of Design work already experienc
Slide 43: HTML is looking to consolidate its position across businesses
HTML is looking to consolidate its position across businesses Consolidate No.1 position in Delhi market 1 English Daily Continue to focus on Mumbai; acquiring significant readership and increase in advertising g Consolidate position in UP & Uttarakhand while maintaining leadership 2 position i
Slide 44: Thank You
Thank You 44