Nation Media Group Limited · NSEKE:NMG
Nation Media — FY2010 Earnings Presentation
30 slides from Nation Media's earnings presentation, Mar 31, 2011
Slide 1: Annual Review Investor Meeting Briefing
Annual Review Investor Meeting Briefing March 10, 2011 March 31, 2011
Slide 2: 2010 Highlights
2010 Highlights • Overall a good year • Successful 50th Anniversary Celebrations • New look Daily Nation in July; DN2 • Growth in market share across all platforms • Turnaround of young businesses • New TV channel in Kenya: eAfrica • Increased radio and TV footprint: Q FM & NTV in Kisii • Award-winn
Slide 3: 2010 Highlights
2010 Highlights • Unrivalled referendum coverage in Kenya & Southern Sudan • Nairobi Press: New colour tower • Cross listing of NMG shares in Uganda, Rwanda & Tanzania • The East African Rwanda Edition in December • Company of The Year Award 2010 (COYA) 1. NMG Company of the Year 2. CEO of the Year
Slide 4: Divisional Updates
Divisional Updates “
Slide 5: Nation Newspapers Division
Nation Newspapers Division Advertising Revenue 20% Circulation Revenue 8% Total Revenue 15% Direct Costs 9% Operating Profit 28% Nation re-design, DN2 attracts higher readership Press Refurbishment – improved quality New colour tower – higher colour capacity
Slide 6: The East African
The East African Advertising Revenue 13% Circulation Revenue 11 % Operating Profit 10 % New Managing Editor Rwanda edition launched Environment Award: CNN Multichoice winner
Slide 7: Business Daily
Business Daily Circulation Revenue 11% Advertising Revenue 21% Operating Profit 178% Maintained niche Online traffic grown: page views up 116% in 2010
Slide 8: Easy FM
Easy FM Revenue 14% Operating Profit 65% Launch of new evening drive show with Angela Angwenyi & Edward Kwach easy fm upgraded: Expansion of music library, greater variety of R&B
Slide 9: Q FM
Q FM Revenue 176% Operating Profit 161% Phenomenal growth: Kenya’s fastest growing radio station Launch in Kisii
Slide 10: K FM Uganda
K FM Uganda Ad Revenue 29% Operating Profit 6% Remains the number one station in information and music – most preferred by the emerging middle class Introduced experiential activations
Slide 11: NTV Kenya
NTV Kenya Revenue 51% Operating Profit 131% CNN Multichoice Awards Referendum coverage in Kenya & Southern Sudan County Edition High Ratings, market share growth
Slide 12: NTV Uganda
NTV Uganda Revenue 34% Operating Profit 142% No. 1 station nationwide – reach & viewership (Synovate 2010)
Slide 13: Monitor Publications Ltd
Monitor Publications Ltd Circulation Revenue 4% Direct Costs 7% New printing press: April 2011 launch People: New Executive Editor NiE – reach more than 250,000 students weekly Top 100 – held the 2nd successful medium sized company survey in Kampala Launched the only comprehensive online directory i
Slide 14: Mwananchi Communications Ltd
Mwananchi Communications Ltd Advertising Revenue 23% Circulation Revenue 47% Operating Profit 124% New printing press: high quality product, increased market share Election coverage: MCL Most balanced, unbiased, independent media house – Media Council of Tanzania 10th year anniversary
Slide 15: The Citizen
The Citizen Advertising Revenue 32% Circulation Revenue 32% Contribution 21% Improved content, stronger design Increased pagination
Slide 16: 2010 Financial Results
2010 Financial Results
Slide 17: Consolidated Statement of Comprehensive Income (Kshs M)
Consolidated Statement of Comprehensive Income (Kshs M) 2009 2010 % Kshs M Kshs M change Turnover 8,189.80 9,602.50 17.2 Profit before income tax 1,617.40 2,146.60 32.7 Income tax expense (498.2) (608.2) (22.1) Profit attributable to shareholders 1,103.20 1,519.80 37.8
Slide 18: Sustained Turnover Growth
Sustained Turnover Growth Kshs M 12,000 - 10,000 + 9,603 8,252 8,190 8,000 - 7,686 6,339 6,000 5,597 4,000 - 2,000 ~ 2005 2006 2007 2008 2009 2010
Slide 19: Profit Before Tax (Kshs M)
Profit Before Tax (Kshs M) 2,500.0 2,146.6 2,000.0 1,910.3 1,601.6 1,617.4 1,500.0 - = 2 1,150.8 Z 1,010.6 1,000.0 — 500.0 — 2005 2006 2007 2008 2009 2010 [= = Bac G z a ye Sa Pb ahebrars Set es ‘ BAS ve
Slide 20: Dividend Trend (Kshs/share)
Dividend Trend (Kshs/share) 8.00 2.50 7.00 6.00 5.50 5.50 5.50 5.25 5.00 Div (Kshs) 4.00 3.50 3.00 3.00 2.00 1.00 0.00 2005 2006 2007 2008 2009 2010 2010 •Dividend held at 2009 level (Kshs 5.50 per share) •Special dividend of Kshs 2.50 per share • Total Dividend Kshs 8.00 per share
Slide 21: Earnings Per Share (Kshs)
Earnings Per Share (Kshs) 12.0 10.0 9.8 8.3 8.0 6.9 7.0 6.0 5.0 4.6 4.0 2.0 0.0 2005 2006 2007 2008 2009 2010 • EPS growth 39% in 2010
Slide 22: NMG Share Price
50.00 0.00 100.00 150.00 200.00 12/21/2006 250.00 1/18/2007 2/12/2007 Dec 2006 3/7/2007 3/30/2007 4/26/2007 5/22/2007 6/15/2007 7/10/2007 8/2/2007 8/27/2007 9/19/2007 10/15/2007 11/7/2007 11/30/2007 Dec 2007 1/4/2008 1/30/2008 2/22/2008 3/18/2008 4/14/2008 5/8/2008 6/3/2008 6/26/2008 7/21/2008 8/13/
Slide 23: Shareholders Funds (Kshs M)
Shareholders Funds (Kshs M) 6,000 5,360 5,000 4,647 4,328 4,000 3,824 3,588 3,290 Kshs M 3,000 2,000 1,000 - 2005 2006 2007 2008 2009 2010
Slide 24: Capital Expenditure
Capital Expenditure 600 535 500 468 468 447 400 366 361 Capex (Kshs M) 300 200 100 0 2005 2006 2007 2008 2009 2010
Slide 25: Operating Profit Margin Trend
Operating Profit Margin Trend 25% 23% 22% 21% 20% 20% 18% 18% 15% 10% 5% 0% 2005 2006 2007 2008 2009 2010
Slide 26: Statement of Financial Position (Kshs M)
Statement of Financial Position (Kshs M) 2009 2010 Kshs M Kshs M Capital and Reserves Share capital 357 393 Retained earnings 3,637 3,916 Proposed dividends 570 1,021 Minority interest 67 62 Total equity 4,714 5,422 Total Equity & Non-current liabilities 4,803 5,422 Assets Non-current assets 2,807 2
Slide 27: Condensed Cash Flow Statement (Kshs M)
Condensed Cash Flow Statement (Kshs M) 2009 2010 Kshs M Kshs M Cash generated from operations 2,088 2,904 Interest received 77 87 Interest paid (50) (2) Tax paid (594) (540) Net cash from operating activities 1,519 2,449 Net cash used in investing activities (510) (451) Net cash used in financing ac
Slide 28: 2011 Outlook
2011 Outlook
Slide 29: 2011 Outlook
2011 Outlook • Economic risk: low economic growth; drought; escalating fuel costs; Kshs depreciation • New press in Uganda: April 2011 launch • Grow market presence • Focus on innovation • Cautiously optimistic
Slide 30: Thank You
Thank You This presentation is available on http://www.nationmedia.com/investor.html