Music Broadcast Ltd. · NSE:RADIOCITY
Music Broadcast — Investor Presentation (May 2017)
39 slides from Music Broadcast's investor presentation, May 25, 2017
Slide 1: Investor Presentation FY 2017 filing letter to exchanges
FM BOLE TOH RAG RAG MEIN DAUDE CITY. | @gzveZelera7 PRA IAGRAN INITIATIVE May 25, 2017 1. | National Stock Exchange of India Ltd. | 2. | BSE Limited Exchange Plaza, 5t Floor Corporate Relationship Department Plot No. C/1, G Block; Bandra (East) Phiroze Jeejeebhoy Towers Mumbai 400 051 Dalal Street;
Slide 2: Music Broadcast Limited Investor Presentation May 2017
Music Broadcast Limited Investor Presentation May 2017
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Music Broadcast Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: Benefiting from Profitable Growth Strategy
Benefiting from Profitable Growth Strategy ~36% for 28 CAPEX for all 11 Net Cash of Rs. Stations Stations done 145 Crs ~34% for 39 Maintenance Improvement in stations CAPEX Rs. ~4-7 Debtor days Margins sustained Crs despite investment in Prudent Investments Financial Flexibility 11 stations for Prof
Slide 5: Introduction
It FM BOLE TOH Introduction BAG RAG MEIN DAUDE CITY. | G227-%e777 RN IAGRAN INITIATIVE
Slide 6: MBL at a Glance
MBL at a Glance Over 15 Years of Experience in the Radio Industry ▪ 1st Private FM Radio Broadcaster in India 11 Cities acquired in Phase III ▪ Presence in 12 out of the top 15 cities of India by population ▪ Presence in the Internet Radio Space with PlanetRadioCity.com – 42 web radio 52.5 mn Listen
Slide 7: Industry Potential
It FM BOLE TOH Industry Potential BAG RAG MEIN DAUDE CITY. | G:277-%e757 RN IAGRAN INITIATIVE
Slide 8: Radio Industry: Growth Ready
Radio Industry : Growth Ready Media Industry Radio Industry Highlights of Phase III Policy In Rs. bn In Rs. bn CAGR 14% CAGR 16% Government has Liberalized Regulations 2,419 48 Multiple frequencies: An operator under Phase III Policy regime may own up to 40% of channels in the same city subject to t
Slide 9: Mega Industry Trends
Mega Industry Trends Increase in number of frequencies ✓ Increased frequencies from 243 to 405 post Phase III, Batch 2 Increase in the wallet share ✓ Radio’s share in the overall advertising revenue ranges ~ 4-5% which is lower than many developed countries where the share is ~ 7-10% Deepening Penet
Slide 10: Radio City Rag Rag mein Leadership
Radio City Rag Rag mein LEADERSHIP 9
Slide 11: Rag Rag mein Leadership
Rag Rag mein LEADERSHIP Industry Product Organizational Leadership Leadership Leadership Leadership Position in Large Markets Right Shows : Right Time Internal Operational Systems & HR 1. 1. 1. Received 28 awards in 2016 and 33 awards and counting in 2017 2. Leadership in Mumbai and Bengaluru 2. Rig
Slide 12: Industry Leadership
It FM BOLE TOH Industry Leadership BAG RAG MEIN DAUDE CITY. | GzzZ%ei5% RN IAGRAN INITIATIVE
Slide 13: Leadership Position in Large Markets
Leadership Position in Large Markets Listenership Across Listenership in Mumbai Listenership in Delhi Listenership in Bengaluru Markets In mn In mn In mn In mn 52.5 8.4 9.2 4.7 8.2 42.1 3.7 6.4 7.2 5.9 3.2 5.5 5.8 5.5 2.7 27.2 2.3 22.7 15.1 2.0 9.1 Radio One Radio Mirchi Fever Radio City Big FM Red
Slide 14: Leadership in Mumbai and Bengaluru
Leadership in Mumbai and Bengaluru Listenership Market Share Data Mumbai Bengaluru 20 30 16 25 20 12 % Share % Share 15 8 10 4 5 0 0 2013 2014 2015 2016 YTD 2017* 2013 2014 2015 2016 YTD 2017* Mirchi One City Red Big Mirchi One City Big Fever Oye Nasha Redtro Indigo Fever S FM Mirchi 95 Amongst the
Slide 15: Leadership in Advertisement Volume
Leadership in Advertisement Volume Advertising Volume 12.1% Government Real Estate BFSI 6 Year CAGR (FY11-17) 9.7% 9.0% 9.1% 8.3% 4.0% 16% 10% 8% Radiocity Radio Big FM Red/S FM Others Industry Mirchi mn Seconds (FY17) Others Retail E-commerce 74.9 75.4 34.2 63.2 94.6 342.3 7% 6% 53% Radio City has
Slide 16: Product Leadership
It FM BOLE TOH Product Leadership BAG RAG MEIN DAUDE CITY. | GzzZ%ei5% RN IAGRAN INITIATIVE
Slide 17: Right Shows: Right Time
Right Shows : Right Time Ranked 1 in terms of “Top of Mind” Brand Recall in Major cities of India Focus on localization of the content best suited to each city’s taste, leading to higher retention of listenership Award winning sparkler( IRF Rag Rag Mein Daude City brand The award-winning show 2017)
Slide 18: Right Markets: Right Price
Right Markets : Right Price Mumbai, Delhi, Bangalore, Chennai, Pune, Hyderabad, Phase I & Ahmedabad, Surat, Nagpur, Lucknow, Jaipur, Baroda, Coimbatore, Vizag, Ahmednagar, Sholapur, Sangli, Phase II Nanded, Jalgaon and Akola Stations Jalandhar Patiala Hissar Karnal Bareilly Delhi Radio Bikaner Agra
Slide 19: New Age Digital Media
New Age Digital Media 24x7 online radio with live RJ hosted shows The ‘Planet Radio city’ mobile app plays 25+ radio stations & 350+ playlists in 7 languages has a total of 70,000+ downloads April 2017 42 Radio stations & 300+ playlists have generated a listenership of 32 Million Source: Purple Stre
Slide 20: Organizational Leadership
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Slide 21: Internal Operational Systems & HR
Internal Operational Systems & HR People Front End of Content and Practices Digital Curve and Tech Changes Communication Expertise Using independent agencies such as AZ Research, RAM, AirCheck Amongst the first radio stations and Ormax Media to understand Good people practices have to have networkin
Slide 22: Awards & Accolades
Awards & Accolades 17 Awards 7 Awards 3 Awards 20 Awards Great Place to Work ▪ Ranked 1 in Media Industry in Great Places to Wok in 2015 & 2014 ▪ Ranked 18th in Great Places to Work for in 2015 Grand Prix at 2 Awards ▪ Ranked 1st in Great Places to Work for Special Category: Fairness in Performance
Slide 23: Strengthening Leadership 2016-17
Strengthening Leadership 2016-17
Slide 24: Disciplined Capital Allocation
Disciplined Capital Allocation Phase II Phase III 26 40Cost Set Up 86 towns 302 towns Industry 63 New Licenses 63 for Phase III 60% 62% of India’s of India’s Population having Population having FM Radio FM Radio Migration Fees for Phase I & II ✓ Capex towards New Stations completed 237 Stations and2
Slide 25: Portfolio Optimization
Portfolio Optimization 39 11 Average Inventory 28 Availability is 15 min for 18 hrs. Legacy Stations Phase III Stations Total Stations Average Utilization 65-75% 6% 50-60% Annualized Average Utilization 65-75% 20-30% 60-70% Top 4: 500-1,200 Top 4: 500-1,200 Average Realization Levels (Rs./10 sec) Ne
Slide 26: Operating Leverage to Play Out
Operating Leverage to Play Out EBITDA Analysis for FY2017 Future Outlook Revenue 271 Increase in Effective Rates in Legacy Stations Employee 36% Marketing 13% ✓ ~ 85% of Total Operating Cost are Fixed in nature Increase in Utilization in Radio Programming 6% Mantra and Phase III Stations ✓ Increment
Slide 27: Headroom for Growth
Headroom for Growth Consolidated Debt Objects of the Issue: In Rs. Crs ✓ Redemption of Listed NCDs – Rs. 200 Crs 291 223 ✓ Early redemption of the JPL NCDs and repayment/pre- payment of JPL ICDs – Rs. 98 Crs 150 ✓ General Corporate Purposes – ~Rs. 84 Crs 2015 2016 2017 Net Debt to Equity (x) Proceed
Slide 28: Experienced Team with Strong Parentage
Experienced Team with Strong Parentage
Slide 29: Experienced Board of Directors
Experienced Board of Directors Vijay Tandon Apurva Purohit Rahul Gupta Sameer Gupta Anuj Puri Chairman & Independent Director Non-Executive Director Non-Executive Director Independent Director Director Holds a Bachelor’s degree in Science from the University of Madras and a Post Graduate Diploma in
Slide 30: Strong Management Team
Strong Management Team Abraham Thomas : CEO Holds Bachelor’s degree in Pharmacy from the University of Bombay and a Master’s diploma in Business Administration from the Institute of Management, Development and Research, Pune. He is also on the board of directors of One Network and Media Agnos. Prior
Slide 31: Part of the Jagran Prakashan Media Power House
Part of the Jagran Prakashan Media Power House Two #1* Print ▪ JPL is a leading Media Power House India’s 22 Key Product Dailies, Dainik Jagran and Service Largest* read (Hindi) and Inquilab ▪ JPL holds 70.58% in Music Broadcast Limited Brands (Urdu) daily- Dainik Jagran 10 Print 68+ mn* ▪ Benefits
Slide 32: Financials
It FM BOLE TOH Pein alls RAG RAG MEIN DAUDE CITY. | @zezerery RN IAGRAN INITIATIVE
Slide 33: Performance Highlights
Performance Highlights Revenues EBITDA In Rs. Crs +20% In Rs. Crs +17% 271 91 225 78 201 62 2015 2016 2017 2015 2016 2017 PAT EBITDA Margins In Rs. Crs 47 +33% 34.7% 37 28 33.6% 31.0% 2015 2016 2017 2015 2016* 2017 FY16 & 17 data is as per IndAS 32 *Includes Exceptional Expenses of Rs. 13.58 Crs
Slide 34: Profit and Loss – Quarterly
Profit and Loss – Quarterly In Rs. Crs Q4FY17 Q4FY16 YoY Revenue 66.6 64.2 4% Licenses Fees 4.8 4.5 Employee Expenses 17.0 15.0 Advertising Expense 6.4 5.9 Other Expenses 21.7 16.3 EBITDA 16.6 22.6 -27% EBITDA Margin 24.9% 35.2% Other Income 1.7 1.4 Depreciation/Amortization 5.6 3.2 EBIT 12.6 20.8 -
Slide 35: Profit and Loss – Annual
Profit and Loss – Annual In Rs. Crs FY17 FY16 YoY Revenue 271.4 225.5 20% Licenses Fees 19.2 17.2 Employee Expenses 65.1 51.1 Advertising Expense 24.0 20.6 Other Expenses 71.9 58.4 EBITDA 91.3 78.1 17% EBITDA Margin 33.6% 34.7% Other Income 4.4 14.7 Depreciation/Amortization 19.7 16.7 EBIT 76.0 76.2
Slide 36: Balance Sheet
Balance Sheet Assets (In Crs) FY17 FY16 Liabilities (In Crs) FY17 FY16 Total Non Current Assets 361.9 362.2 Shareholders Fund 548.1 210.0 Fixed Assets 311.6 296.0 Share Capital 57.1 42.0 Tangible Assets 35.3 8.2 Intangible Assets 276.3 222.1 Other Equity 491.1 168.0 Intangible Assets Under Developme
Slide 37: Looking Ahead
It FM BOLE TOH Looking Ahead BAG RAG MEIN DAUDE CITY. | G227-%e777 RN IAGRAN INITIATIVE
Slide 38: Key Takeaways
Key Takeaways Industry Growth Strong Parentage High Entry Barriers Radio Industry is estimated JPL Group Relationships, Radio Industry is protected to grow at a CAGR 16% Experienced Team, by Licenses for 15 Years over the next 5 Years Knowledge of Local Markets thereby restricting the & Credibility
Slide 39: Contact Us
CIN: L64200MH1999PLC137729 Ms. Sangeetha Kabadi Email : sangeethak@myradiocity.com Mr. Jimmy Oza Email: jimmyo@myradiocity.com www.planetradiocity.com Contact Us CIN: U74140MH2010PTC204285 Ms. Payal Dave Email : payal.dave@sgapl.net Ms. Payal Sheth Email: payal.sheth@sgapl.net www.sgapl.net