Saregama India Limited · NSE:SAREGAMA
Saregama India — Investor Presentation (October 2020)
38 slides from Saregama India's investor presentation, October 2020
Slide 1: Corporate Presentation | October 2020
CORPORATE PRESENTATION | OCTOBER 2020
Slide 2: Saregama
Saregama India’s oldest music label and youngest film production house Producing digital thematic films targeted at the youth segment. 13 movies released on Consistent Dividend Yield and Netflix / Disney Hotstar in 3 yrs Zero Debt Company Leading producer in terms of number of hours of content (6050
Slide 3: India's Only Entertainment Company
Saregama INDIA’S ONLY Entertainment Company into MUSIC LICENSING DIGITAL as well as FILMS RETAIL PHYSICAL Music Films Television Serials Retail Business India’s Largest Music IP Content IP rights of Content IP rights of Distribution network 130k+ 59 6k+ 29k+ Songs Films Hours of Television Serials R
Slide 4: Strategic Overview: Digitisation Driving Growth
Strategic Overview D I G I T I S AT I O N D R I V I N G G R O W T H Digital Increase in Increase Demand for Boom in India in App Usage Content Video/Music Streaming Netflix / Spotify / Gaana Music 550M Video Sharing Films smart phones driving Youtube / Facebook / TikTok driving Games Cheap Data Gami
Slide 5: Strategic Overview
Strategic Overview To be a Pure Play Content Company capitalising on the global content consumption boom driven by the ever increasing Digitisation Through licensing to EVERY 3rd party Digital (music, video, social) and TV platform. Monetisation of Existing IP Carvaan transitioning from being a Prod
Slide 6: Awards & Accolades
Awards & Accolades Carvaan HAMID KD AJJI National Awards UK Asian Film Festival Beaune film festival IndIAA Awards 2018 Spikes Awards 2018 Marquees 2018 Best Director: Madhumita Best Film Award (fresh The Perfect Gift Tangrams Effectiveness Reimagining for the Better Best Urdu Film Best Child Actor:
Slide 7: Business Verticals
Business Verticals Saregama 100% Revenue Music TV & Films Publication 86% Revenue 13% Revenue 1% Revenue Licensing Retailing 46% Revenue 40% Revenue Music Video Video Broadcasting Collection Streaming Sharing Streaming Platforms Societies Carvaan Apps Platforms Apps and Brands 7
Slide 8: Music Segment: Licensing & Retailing
MUSIC SEGMENT Licensing & Retailing 8
Slide 9: Music Industry
Music Industry • Indian Music industry grew 8.3% to reach INR 15.3 Billion in 2019 and is Indian Music Industry Size (INR Bn) expected to grow at a CAGR of 10% to cross INR 20 Billion by 2022. (EY FICCI report, 2019) • The growth in India has come on the back of digital consumption led by 20 smartph
Slide 10: Fast Growing Music Licensing Revenue
Saregama Music IP Licensing Revenue (INR Mn) Fast Growing FY20 FY19 1,949 2,381 Licensing Revenue FY18 1,478 FY17 1,388 On account of A. Growing customer interest in Retro Music B. Saregama’s Investment in New Music C. Presence across all Indian Languages Catalogue Usage (Bn) Share of Saregama’s Son
Slide 11: Most Popular Indian Music Library
Most POPULAR Indian Music Library O U R L I C E N S I N G PA R T N E R S Music Streaming Platforms Broadcasting Platforms Video Streaming Platforms v v v Social Media Platforms 11
Slide 12: Most Extensive Indian Music Library
Most EXTENSIVE Indian Music Library 130000+ Songs Covering multiple Indian languages and genres HINDI BENGALI TAMIL MARATHI 38900+ 26600+ 11800+ 6300+ TELUGU MALAYALAM PUNJABI KANNADA 8100+ 7000+ 8400+ 3100+ DEVOTIONAL CLASSICAL Ghazals Folk 18300+ 8400+ 1200+ 4700+ 12
Slide 13: Home of Legends
HOME of LEGENDS Lata Shamshad Mohd. Geeta Mukesh Kishore Mangeshkar Begum Rafi Dutt Kumar 90% 95% 90% 90% 90% 80% Asha Laxmikant- Kalyanji – Shankar – Ravi S.D. Bhosle Pyarelal Anandji Jaikishan Burman 80% 90% 90% 90% 90% 90% Madan C. Ramchandra Naushad R.D. Purshottam Jagjit Mohan Burman Das Jalota
Slide 14: Music of the Biggest Films of Bollywood
Music of the BIGGEST films of Bollywood 14
Slide 15: Music Licensing
Music Licensing A. MUSIC STREAMING APPS (OTT) B. SOCIAL MEDIA PLATFORMS Saregama Music is licensed to 45+ OTT Global Saregama has 25 channels on YouTube with a cumulative Platforms subscriber base of over 34 Mn • Saregama licenses its music to various OTT platforms for The monthly views on Saregama’
Slide 16: Music Licensing
Music Licensing C. VIDEO STREAMING PLATFORMS D. BROADCASTING PLATFORMS – TV CHANNELS, BRANDS With the rising popularity of video streaming in India, • Saregama Licenses its music to Television Channels for use in platforms like Netflix, Disney+ Hotstar, Amazon, MX various TV serials, reality shows,
Slide 17: Music IP Creation: Process
Music IP Creation: Process The Music IP will be built through new film music acquisition across Hindi, Tamil and Marathi with a clear strategy to start slowly, vet assumptions and build up the slate over a period of time The company is additionally creating non-film music in Bhojpuri, Punjabi and Gu
Slide 18: New Bollywood Films Music
New Bollywood Films Music 18
Slide 19: Latest Tamil Film Music
Latest Tamil Film Music 19
Slide 20: The Patron of Ghazals in India / New Bhojpuri Content
THE PATRON OF New Bhojpuri GHAZALS IN Content INDIA 20
Slide 21: Music Retailing: Directly through Carvaan
Music Retailing : directly through Carvaan India’s most "DIFFERENTIATED" and "PREMIUM" music brand Brand Attributes Targeted at the 35+ generation, who value Convenience 35+ Convenience over Control for their audio of Use Segment listening experience The Product • Perfect blend of digital technology
Slide 22: Music Retailing: Carvaan Product to Platform
Music Retailing : directly through Carvaan Product to Platform Carvaan has been a huge success with middle-aged Indians Saregama plans to now evolve the brand from a standalone Product to a Platform offering all kinds of daily updatable audio content to people living in India and abroad The biggest
Slide 23: Video Segment: TV & Films
VIDEO SEGMENT TV & Films 23
Slide 24: Video Segment: Yoodlee Films
Video Segment: Yoodlee Films • Yoodlee Films is Saregama’s production house focussed on creating content for 3rd party digital platforms • Saregama issues period-based licenses for its movies to these platfoms for a fixed-fee. In some cases, it also licenses the same movie to TV channels, TVoD platf
Slide 25: Video Segment: Broadcasting – Tamil TV Serials
Video Segment: Broadcasting – Tamil TV Serials TAMIL TV SERIALS • Saregama is the leading TV series content producer for The revenue stream is through advertising slot sales. The Southern channels. In the past, it also produced shows for Company also monetises these serials on digital platforms Hind
Slide 26: Publication
PUBLICATION 26
Slide 27: Publication Segment: Open Magazine
Publication Segment: Open Magazine PUBLICATION Operated through a 100% owned subsidiary • The Publication segment includes the Open Magazine, a weekly current affairs and features magazine, operated through a 100% owned subsidiary • Open Magazine was launched in April 2009, as a print-only weekly av
Slide 28: Future Outlook
FUTURE OUTLOOK 28
Slide 29: Outlook
Outlook Music Licensing • Factoring in the Covid-19 related hiccups, we believe that Music Licensing will grow between 18-20% in FY 21 • From FY 22 onwards, this business will again start growing at 22-25% pa • The key drivers will be the growing Digitsation (will grow the market) and Saregama’s inv
Slide 30: Financial Overview
FINANCIAL OVERVIEW 30
Slide 31: Financial Summary – Consolidated
Financial Summary – Consolidated Particulars (INR Mn) FY 19-20 FY 18-19 Y-o-Y Growth FY 17-18 Revenues from Operations • Music 4,444 4,897 (9)% 2,968 • TV & Films 702 476 48% 529 • Publication 69 74 (7)% 68 Revenue from Operations Total 5,215 5,447 (4)% 3,566 PBT 603 847 (29)% 389 PAT 435 543 (20)%
Slide 32: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY20 FY19 FY18 Revenue from Operations 5,215 5,447 3,566 Other Income # 112 564 102 Total Revenue 5,327 6,011 3,668 Total Expenses 4,610 5,065 3,203 EBITDA 717 946 465 EBITDA Margin (%) 14% 17% 13% Depreciation 47 33 42 Finance Cost 67 66
Slide 33: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equity and Liabilities (INR Mn) FY20 FY19 FY18 Assets (INR Mn) FY20 FY19 FY18 Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 174 174 174 (a) Property, Plant and Equipment 2,053 2,057 1,884 (b) Other Equity 3,814 4,107 3,643 (b) Right to use
Slide 34: Historical Standalone Income Statement
Historical Standalone Income Statement Particulars (INR Mn) FY20 FY19 FY18 Revenue from Operations 5,001 5,244 3,456 Other Income# 115 595 142 Total Revenue 5,116 5,839 3,598 Total Expenses 4,347 4,921 3,115 EBITDA 769 918 483 EBITDA Margin (%) 15% 16% 14% Depreciation 44 30 38 Finance Cost 67 66 34
Slide 35: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Equity and Liabilities (INR Mn) FY20 FY19 FY18 Assets (INR Mn) FY20 FY19 FY18 Shareholders Fund Non Current Fixed Assets 174 174 174 (a) Property, Plant and Equipment 2,052 2,056 1,881 (a) Equity Share Capital (b) Right of use Asset 4 (b) Other Equity 3,964 4,087
Slide 36: Financial Charts (Consolidated)
Financial Charts (Consolidated) Revenue from Operations Music Licensing Revenue PAT (INR Mn) Diluted EPS (INR) (Turnover) (INR Mn) (INR Mn) 31.2 543 5,447 5,215 25.3 2,381 435 1,949 3,566 16.2 283 1,478 1,388 1,297 5.0 2,217 2,185 3.9 86 69 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY17 FY18
Slide 37: Capital Market Data
Capital Market Data 80% 60% 40% 20% Saregama 0% Sensex -20% -40% -60% Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Price Data (As of 30th September, 2020) INR Shareholding Pattern as on 30th September 2020 Face Value 10.0 Others Market Price 557.8 31.81% 52 Wee
Slide 38: 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
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