Nation Media Group Limited · NSEKE:NMG
Nation Media — H1 2009 Earnings Presentation
49 slides from Nation Media's earnings presentation, 2009
Slide 1: NMG Investor Briefing H1 2009 Results
NMG Investor I t Briefing H1 2009 Results
Slide 2: Agenda
Agenda H1 2009 Highlights Divisional Updates H1 2009 Financial i i l Results l FY09 Outlook Q&A
Slide 3: H1 Highlights
WANA; > y H1 Highlights Media of Africa for Africa
Slide 4: H1 Overview
H1 Overview Slow start to the year Convergence: One‐stop shop for advertisers Closure of Daily Metro in April Launch of SQOOP pullout in the Friday Monitor‐ Uganda LLaunch h off this hi year’s ’ Business B i Daily D il sponsored Top 100 SMEs survey Newspapers In Education (NiE) launch NTV re‐launch
Slide 5: H1 Overview
H1 Overview fl Outsourcing fleet maintenance to GM has h increased d efficiency and driver safety significantly Gl b l economic Global i crisis i i impact i t Newsprint prices up by over 35% but trend declining in second half 2009 Reduced advertising volumes Weaker shilling affecting cost of imports
Slide 6: Advertising Convergence
Advertising Convergence The objective is to give consumers what they want, want when they want it and in the way they want it We are able to offer multi‐media advertising solutions that are un‐ matched in this region
Slide 7: Newspapers In Education (NiE)
Newspapers In Education (NiE) A worldwide initiative in which school textbooks and teaching materials are supplemented with the use of local newspapers. NiE provides newspapers and curriculum guides (at no cost to teachers) that cover a variety i t off subjects.
Slide 8: Divisional Updates
AAS ae Divisional Updates Media of Africa for Africa
Slide 9: Nation Newspapers Division
Nation Newspapers Division Unique offerings ‐‐Special reports (serializations and investigative packages) Agenda‐setting content ‐‐ water, the environment, Tribunal debate
Slide 10: Launch of Sqoop pullout in the Friday Monitor
Launchh off SSqoop pullll out in i the Friday Monitor
Slide 11: cCcn
cCcn Remains pee Siompytinratce — teceiigatieding ements irieateed 4 Femi 2 ES b fs } ij 4 j _ =) 1 a as Eve coming to town . egg tat Uganda s Senfene aura answer to TPain? Tune in for the latest in showbiz and the best Hits on FIG
Slide 12: Business Daily is your knowledge point
Business Daily is your k knowledge l d point, i t your information source . . . . . your business daily
Slide 13: Successful Re-launch
Successful Re‐launch
Slide 14: Slide 14
Slide 15: New Identity
New Identity Brighter, fun, more exciting New N logo l represents ‘The ‘Th Ribbon Ribb off Life’ Lif ’ in i its i many hues and forms TTelevision l i i weaves itself it lf into i t our every day d lives li through news, information and programming The new logo captures the new spirit of NTV and its
Slide 16: New Station Programming
Hattua Wash and Set Ken nya My Lan nd Top Comic New Station Programming Bebaa Beba Love in 60 0 Seconds WTV ((DUB TV) Guy Centre
Slide 17: BACHELOR
AMERICA A’S GOT TALLENT TTHE GAM ME GR REY’S AN NATOMY 90210 CATALLINA & SEB BASTIAN THE B BACHELOR R SMALLLVILLE SAMAN NTHHA WH HO? ELI STO ONE
Slide 18: Nation Digital: E-papers
Nation Digital: E‐papers The e‐papers are available at the following addresses: • dn.nationmedia.com • tf.nationmedia.com • ea.nationmedia.com • bd.nationmedia.com
Slide 19: Nation Digital
Nation Digital Television (Video) easy fm Newspaper (Text/ Pictures) Radio (Audio)
Slide 20: Q Bid
Mnadani leo - SONY. MHC-GNX600 2.1Ch System; 3CD with mp3 playback, Horn Tweeters & Digital Amplifier (5700wP.M.P.0) Bei dukani 27,995 Tuma zabuni yako kwa kutuma SMS kwa nambari 555 7*. Kumbuka, zabuni iliyo chini zaidi isiyo na kifani ndiyo itakayoshinda zawadi. Anza kushiriki sasa! QFM stesheni y
Slide 21: Top 100 Mid-Sized Companies
Top 100 Mid‐Sized Companies The search for this year’s fastest growing and best managed enterprises in the country’s’ crowded d d SMEs S sector kicked off on 22/04/09 with the launch of the 2009 Kenyay topp 100 midsized Companies Survey by Nation Media Group (NMG) and KPMG.
Slide 22: Staff Changes
Staff Changes Wangethi Mwangi Joseph Odindo takes over as Tom N. Mshindi returns to Dr. Gitahi Githinji is the GROUP EDITORIAL the Group Editorial Director Nation Centre to head the acting MD Monitor DIRECTOR retires after 29 Newspaper Division as it it’ss Publications in Uganda years of service Man
Slide 23: CSR Activities
AAS ae CSR Activities Media of Africa for Africa
Slide 24: Turn Over a New Leaf
Turn Over a New Leaf • Save the Mau Turn Over a New Leaf campaign seeks to plant more than a million trees. • Partnership with EABL, KWS, Equity Bank and NMG. • Kenyans y can participate through 5254 and donations can be made to Equity Bank’s account 0180294186672 in any branch.
Slide 25: Tree planting by staff in Njoro at the foot of the Mau
Tree planting by staff in Njoro at the foot of the Mau
Slide 26: Desk donations in Kisumu
IMINATEN IY MEI+IA hou y » al Desk donations in Kisumu
Slide 27: Donation of hearing aids and road signs for deaf school
Donation D ti off h hearing i aids and erection of road signs for deaf school in Dar es Salaam
Slide 28: Save A Life donation and food feeding session
Above: Save A Life donation and food feeding session in Kibera slums with staff and students from Strathmore School on 19/6. Below: Relief food distribution by Staff on 26/3 in the Save A Life campaign that NMG partners with Standard Chartered and EABL.
Slide 29: Maseno University soccer team
Maseno University soccer team – Overall winner out of 12 teams
Slide 30: Mountain of Food Campaign
Mountain of Food Campaign
Slide 31: H1 2009 Financial Results
AAS ae H1 2009 Financial Results Media of Africa for Africa
Slide 32: H1 2009 Operating Results
H1 2009 Operating Results 1.3% Cost of Sales 34% 0.3% Profit before Tax 23.9%
Slide 33: Turnover Growth (Ksh M)
_ 3,761 3,809 3,492 3,002 2,640 | H1 2005 H1 2006 H1 2007 H1 2008 H1 2009
Slide 34: Pre-tax Profit for the period ended 30th June 2009
Pre‐tax Profit for the period ended 30th June 2009 (Ksh M)
Slide 35: Interim Dividend Trend (Kshs/share)
Interim Dividend Trend (Kshs/share) Interim dividends held constant from 2007
Slide 36: Profit and Loss Account (Ksh M)
Profit and Loss Account (Ksh M) June 2009 June 2008 % Change Turnover 3 809 3,809 3 761 3,761 1 3% 1.3% Profit Before Tax 588.2 772.6 (23.9)% Tax Expense (194) (270) 28.2% Profit Attributable to Shareholders 386.4 503.6 (23.3)% Earnings per Share 2.71 3.53 (23.3)% Dividend per Share 1.50 1.50 ‐
Slide 37: Consolidated Balance Sheet (Ksh M)
Consolidated Balance Sheet (Ksh M) 30th June 2009 31st December 2008 Capital & Reserves Share Capital 357 357 Retained Earnings 3,477 3,316 Other Reserves 66 85 Proposed Dividends 784 570 Minority Interest (8.3) ((13.1) 3. ) Total Equity 4,675 4,315 Non‐current Liabilities 112.5 131.2 T l Equity Tot
Slide 38: Condensed Cash Flow Statement (Ksh M)
Condensed Cash Flow Statement (Ksh M) 6 months ended 30.06.2009 Cash Generated from Operations 728.4 Net Interest 25 Tax Paid ( (372) ) Net Cash from Operating Activities 382 Net Cash used in Investing Activities (342) Net Cash used in Financing Activities (49) Net Cash Movement (9.1) Cash at Start
Slide 39: Nation Newspapers Division
Nation Newspapers Division Advertising Revenue 9% Total Revenue 4% Di Direct C Costs 36% Operating Profit (11)% Performance affected by increase in direct costs O h d below Overheads b l prior i year: 6%
Slide 40: Nation Broadcasting Division
Nation Broadcasting Division TV performance affected by investment in local programmes p g Radio revenues up 13% NTV station t ti re-launch l h QFM continues to grow Easy FM still the number one English station Listen to Easy FM live on the internet (easyfm.co.ke)
Slide 41: Monitor Publications Ltd
Monitor Publications Ltd Revenue (4)% Operating Profit 1% E ll t performance Excellent f by b KFM radio di Overheads below prior year by 6% Key clients cutting costs in downturn and holding on to ad spend N pullout New ll t launched l h d – SQOOP
Slide 42: NTV Uganda
NTV Uganda Revenues 73% Operating Results 42% Roll‐out into four new towns: Jinja, Mbale, Masaka & Mbarara Focus on market growth to continue
Slide 43: Mwananchi Communications Ltd
Mwananchi Communications Ltd Advertising Revenue (17)% Circulation Revenue 14% Performance affected byy high g newsprint p costs Significant reduction in ad spend by telecommunication companies Q2 performance f b better than h Q1
Slide 44: Outlook
Media of Africa for Africa
Slide 45: Kenya
Kenya Newsprint prices down Continued ggrowth of Q FM NTV re‐launch to drive higher ratings Water W t & power rationing ti i to t result lt in i higher operating costs New product N d t offerings ff i from f Nation N ti Digital
Slide 46: Uganda
Uganda NTV (U) national roll roll‐out out to continue Radio expansion to be pursued
Slide 47: Tanzania
Tanzania Installation of new printing press Outlook for H2 positive – growth in advertising revenue
Slide 48: Thank You
Thank You This presentation is available on our website www.nationmedia.com
Slide 49: >» NATION AMON [ear Saturday
>» NATION AMON [ear Saturday The EastAfrican 2 easyim number one for blues and r&b COURIE: _ We deliver first. . BUSINESS DIRECTORY Untocking Uganda TRUTH EVERY DAY