Saregama India Limited · NSE:SAREGAMA
Saregama India — Investor Day (August 2024)
51 slides from Saregama India's investor day presentation, August 2024
Slide 1: RPSG Investor Day 2024
RPSG Investor Day 2024 August 2024 www.rpsg.in
Slide 2: RPSG group: Building a diversified conglomerate
RPSG group: Building a diversified conglomerate Power Group turnover of ₹ 36,509 Cr. IT-Enabled Services (~ US$4.4 Bn) Chemicals EBITDA of Asset base of Media & Entertainment ₹ 7,122 Cr. > ₹ 60,590 Cr. (~US$855 Mn) (US$7.3 Bn) FMCG Over 1.1 Million Shareholders Consumer & Retail ▪ One of India’s New
Slide 3: Anchored to core values
Anchored to core values Vision: To be a responsive conglomerate driven by sustainable growth, efficiency and innovation. HUMANENESS Be fair, respectful, transparent and sensitive Shashwat Goenka Vice Chairman CREDIBILITY SUSTAINABILITY RP-Sanjiv Goenka Group Instill trust, confidence Be equally resp
Slide 4: RPSG group: Geographical presence
RPSG group: Geographical presence 3 FSL (Delivery Centres) : US | UK | Philippines | Mexico | India PCBL - Locations : Mundra, Gujarat | Palej, Gujarat | West Bengal | Tamil Nadu; Innovation Centre- Belgium; Aquapharm Chemicals- India, USA & Saudi Arabia; Global Offices across 60+ countries CESC : D
Slide 5: RPSG group: Growth trajectory
RPSG group: Growth trajectory Revenue EBITDA Market Cap 36,509 7,122 78,181# Value Capital FY24 Innovation addition Allocation Driving Single line 9.41X 2.27X FY19 25,909 3.03X 5,075 20,026 Cost focus Efficiencies businesses Setting up Scaling of Foray FY14 16,053 2,348 8,311 leadership existing int
Slide 6: Strategic priorities
Strategic priorities Growth Profitability Sustainability Sustainably growing our People, Planet & Profit Profitable Growth (Focus on businesses (Organic and Climate Commitment ROCE as KPI) Inorganic mix) Goals & Target Product Enhancement R&D and Innovation Wealth Creation Enriching portfolio of bus
Slide 7: India's Largest IP Company
INDIA’ S LAR GE ST IP C O MPA NY
Slide 8: India's leading and only entertainment company with diversified business
INDIA’S LEADING AND ONLY ENTERTAINMENT COMPANY WITH DIVERSIFIED BUSINESS First recording of an Indian RPG Group acquired Started investing in Acquired digital entertainment TV Serial production started Carvaan launched song by Gauhar Jaan. the Company non-film music Company 1902 1946 1986 2000 2001
Slide 9: Saregama - Key Financial Metrics
SAREGAMA - KEY FINANCIAL METRICS Revenue From Operations (INR Mn) Adjusted EBITDA (INR Mn) PBT(INR Mn) 20% CAGR 8,030 44% CAGR 50% CAGR 2,708 3,029 7,366 2,481 2,712 2,044 5,806 2,230 5,447 5,215 4,420 1,519 1,451 3,566 847 2,185 786 763 603 511 389 237 159 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY
Slide 10: Strategic Roadmap
STRATEGIC ROADMAP Riding the Digital Consumption Boom Digital Increase Increase in Increase in Boom in in App Usage Demand for Revenue India Content ~750M smartphones Music Streaming Music SVoD ~22M connected TVs Spotify / Saavn / Wynk Films Netflix / Disney / Spotify Cheap Data Web Series Anti-pira
Slide 11: Strategic Roadmap
STRATEGIC ROADMAP 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 Through artist management, wherein artis
Slide 12: Segmental Growth
SEGMENTAL GROWTH 23% CAGR 5,441 * 2,948 * 4,410 * 3,585 2% 2,062 * 2,839 2,361 1,298 1,296 1,949 1,056 14% 861 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 * One time income of INR 84Mn in FY23, INR 97Mn in FY22, INR 155Mn in FY21 and INR 21Mn in FY20 are excluded FY24 16% Revenue C.
Slide 13: Music: Licensing & Artist Management
MUSIC LICENSING & ARTIST MANAGEMENT
Slide 14: Path to Sustainable Leadership Position
PATH TO SUSTAINABLE LEADERSHIP POSITION Biggest Pan India Investing heavily in New Music Future Proofing the Co. + Focus on Regional Languages Higher Margins + Catalogue Better Monetisation Capability Play in Best in Class Use of Technology Artiste Marketing. Clout of in Content Buying & Management
Slide 15: Growing Licensing & Artiste Management
GROWING LICENSING & ARTISTE MANAGEMENT CATALOGUE NEW MUSIC ARTISTE MANAGEMENT • 160K+ Songs • ~1000CR Investment over • By-product of New next 3 yrs Music • Originals / Derivatives • 4-5yr payback / ~26% IRR • No upfront Investment • 10-12% annual growth • 60-80 yrs of useful life • Improves music m
Slide 16: Catalogue of the Golden Era Across Languages
CATALOGUE OF THE GOLDEN ERA ACROSS LANGUAGES Share of Saregama’s Songs by language Others 14% Bhojpuri 1% Kannada 2% Hindi Gujrati 2% 29% Malayalam 5% Marathi 5% 160K+ Punjabi 6% Telugu Bengali 7% 18% Tamil 11%
Slide 17: Catalogue Growth
CATALOGUE GROWTH Aanewala Pal Janewala Hai (INR Mn) Kahin Door Jab Din Dhal Jaye (INR Mn) Likhe Jo Khat Tujhe (INR Mn) 4.0M 16.1M 4.5M 18.0M 2.5M 4.0M 3.4M 16.0M 2.0M 2.1M 3.5M 3.1M 14.0M 1.7M 3.0M 2.4M 12.0M 9.1M 8.2M 2.5M 10.0M 2.0M 8.0M 1.5M 6.0M 1.0M 4.0M 3.7M 500.0K 2.0M - - FY21 FY22 FY23 FY24
Slide 18: Saregama, the Music Label is Changing
SAREGAMA, THE MUSIC LABEL IS CHANGING 2021-2024 14% 33% 2001-2020 22% 19% 1981-2000 24% 20% 1961-1980 24% 25% Till 1960 17% 3% Count of Songs Revenue 36% of Saregama’s songs were released post 2000, and they contributed to 52% of FY24 revenue Derivatives of catalogue songs are classified basis deriv
Slide 19: Investment in New Content
INVESTMENT IN NEW CONTENT (INR Mn) 4,000 ~10,000 Mn 3,500 3,000 2,500 2,000 1,949 1,500 1,192 1,095 1,000 500 324 151 195 - FY19 FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E
Slide 20: Preferred Partner of Top Film Studios
PREFERED PARTNER OF TOP FILM STUDIOS
Slide 21: Major Film Releases FY25: Hindi
MAJOR FILM RELEASES FY25 : HINDI Movie: Bad Newz Movie: Sky Force Movie: Stree 2 Movie: Jigra Movie: Sarzameen Cast: Vicky Kaushal, Cast: Akshay Kumar, Cast: Shradha Kapoor, Cast: Alia Bhatt Cast: Kajol ,Ibrahim Ali Khan Ammy Virk, Tripti Dimri Sara Ali Khan Varun Dhawan No. of Songs: 6 No of Songs:
Slide 22: Major Film Releases FY25: Tamil
MAJOR FILM RELEASES FY25 : TAMIL Movie Name : Kanguva Movie Name : Train Movie Name : Kingston Movie Name : Valli Mayil Movie Name : Jalsa Cast : Suriya, Disha Patani Cast : Vijaysethupathi Cast : G.V. Prakash Kumar, Cast : Vijay Antony, Cast : Prabhu Deva, Divya Bharathi Fariah Abdullah Aiswarya Ra
Slide 23: Major Film Releases FY25: Telugu
MAJOR FILM RELEASES FY25 : TELUGU Movie Name : Game Changer Movie Name : G.O.A.T Movie Name : Kalki 2898 AD Movie Name : Krishnamma Movie Name : Dilruba Cast : Ramcharan, Kiara Advani Cast : Sudheer Anand, Cast : Prabhas, Amitabh Cast : Sathya Dev, Aathira Raji Cast : Kiran Abbavaram Music : Thaman
Slide 24: Major Film Releases FY25: Malayalam
MAJOR FILM RELEASES FY25 : MALAYALAM Movie Name : Bazooka Movie Name : Nunakuzhi Movie Name : Pavi Movie Name : Nadanna Movie Name : Guruvayoor Cast : Mammootty, Goutham Cast : Basil Joseph Caretaker Sambavam Ambalanadayil Menon Cast : Dileep Cast : Biju Menon, Suraj Cast : Prithiviraj Sukumaran Mus
Slide 25: Major Film Releases FY25: Kannada
MAJOR FILM RELEASES FY25 : KANNADA Movie Name : Martin Movie Name : MAX Movie Name : Devil Movie Name : Kichcha 47 Movie Name : Shivanna 130 Telugu, Malayalam, Hindi Cast : Kiccha Sudeep, Cast : Challenging Star Darshan Cast : Kiccha Sudeep Cast : Dr. Shiva Rajkumar Cast : Dhruva Sarja, Vaibhavi Sim
Slide 26: New Content Investment: P&L Impact
NEW CONTENT INVESTMENT : P&L IMPACT An Illustration Revenue generation for 60-80 yrs Content charged in P&L in 10 years 70 Payback in 5 years 91% 91% 91% 91% 91% 91% 91% 91% 91% 91% 100% 60 71% 74% 80% 69% 50 66% 62% 59% 40 54% 54% 60% 30 40% 32% 20 15% 20% 10 - 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1
Slide 27: Making Money from Music
MAKING MONEY FROM MUSIC
Slide 28: Making Money from Music Licensing
MAKING MONEY FROM MUSIC LICENSING A. Music Streaming Apps (OTT) B. Social Media Platforms (incl. Video sharing Apps) Saregama Music is licensed to multiple Global Platforms • Saregama has 50 music channels on YouTube with a cumulative • Saregama earns every time a customer listens to Saregama subscr
Slide 29: Making Money from Music Licensing
MAKING MONEY FROM MUSIC LICENSING C. Video streaming platforms D. Broadcasting Platforms – TV Channels, Brands • We license our music to various Video OTT platforms like • Saregama Licenses its music to Television Channels for use in various TV Netflix, Disney+ Hotstar, Amazon, MX Player, Zee5, Alt
Slide 30: Music: Artist Management
MUSIC : ARTIST MANAGEMENT Maahi Rj Karishma Neel Salekar Ridhima Pandit Pranav Chandran Pablo Raghav 7.2M Followers 2.9M Followers 2.3M Followers 328K Followers 120K Followers 80.9K Followers Pragati Nagpal Sandeepa Dhar Aditya Shetty Viraj Ghelani Shefali Alvares Gurdeep Mehndi Arjun Tanwar 2.7M Fo
Slide 31: Video Segment
VIDEO SEGMENT FILMS & SERIES, TV AND DIGITAL CONTENT
Slide 32: Our Growth Strategy in Video Segment
OUR GROWTH STRATEGY IN VIDEO SEGMENT 1min – 22mins – 45mins – 120mins Pick Films and Pick Series basis Build D2C + + Cast primarily pre-licensing basis recoveries approval destinations for from Digital and from a VoD/TV Youth-targeted TV licensing platform content Generate Brand Retain IP Sponsorshi
Slide 33: Video Segment: Films & Series
VIDEO SEGMENT : FILMS & SERIES • Yoodlee Films is Saregama’s production house focussed on creating content for theatrical releases and 3 rd party digital platforms & TV • Regional Language Focus • Pocket Aces, through its studio Dice Media, creates premium web-series content for OTT platforms. • Com
Slide 34: Video Segment: Films & Series
VIDEO SEGMENT : FILMS & SERIES FY24 Releases Kasargold Malaikottai Vaaliban Warning 2 Anweshippin Kandethum Crushed Season 4 Half Love Half Arranged (Malayalam) (Malayalam) (Punjabi) (Malayalam) (Hindi) (Hindi) Release: Sep, 2023 Release: Jan, 2024 Release: Feb, 2024 Release: Feb, 2024 Release: Feb,
Slide 35: Video Segment: Digital Content
VIDEO SEGMENT : DIGITAL CONTENT • Pocket Aces creates and publishes content through its owned distribution channels on YouTube, Facebook, Instagram, and Snapchat. • 5 channels : FilterCopy, Nutshell, Dice Media, Gobble & Pocket Change. 40M Follower base 22M+ 3M+ Followers & Subscribers Followers & S
Slide 36: Other Segments
OTHER SEGMENTS
Slide 37: Music: Retail
MUSIC : RETAIL Carvaan volume (in lakhs) 9.1 7.4 6.9 5.6 3.9 4.0 3.5 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Moving from Volume growth to Margin growth Transitioning from physical stores to e-commerce & Modern Trade Brands
Slide 38: Live Events
LIVE EVENTS LIVE EVENTS STRATEGY Artiste Concerts : Low Risk | Low Margin | High IRR • Successfully debuted with a world tour by Diljit Dosanjh, spanning across 30 concerts in India, USA, Canada, Australia and New Zealand • Shows with Divine & Satinder Sartaj • Also helps build artist relationships
Slide 39: Guidance for Next 3 Years
GUIDANCE FOR NEXT 3 YEARS
Slide 40: Next 3 Years (FY28)
NEXT 3 YEARS (FY28) Music : Licensing + Artiste Mgt Video FY24 : 544 CR FY24 : 116 CR 23% CAGR 25-30% CAGR Margins will improve with Margin improvement with Leadership (revenue) & Scale (cost) Scale & Library Company Revenue : 25-26% CAGR Adj EBITDA : Exceeding Revenue Growth Rate PBT : Growth accel
Slide 41: Financials
FINANCIALS
Slide 42: Financial Summary
FINANCIAL SUMMARY Particulars (INR Mn) FY24 FY23* Y-o-Y Growth FY22 Revenue from Operations (A) 8,030 7,366 9% 5,806 Total Expenses (B) 5,001 4,654 7% 3,576 Adjusted EBIDTA (C= A-B) 3.029 2,712 12% 2,230 Adjusted EBIDTA Margin (%) 38% 37% 38% Content Charge (D) 864 679 27% 463 Depreciation (F) 62 31
Slide 43: Historical Consolidated Balance Sheet
HISTORICAL CONSOLIDATED BALANCE SHEET Equity and Liabilities (INR Mn) FY24 FY23* FY22 Assets (INR Mn) FY24 FY23* FY22 Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 193 193 193 (a) Property, Plant and Equipment 2,238 2,207 2,141 (b) Other Equity 14,498 13,228 13,584 (b) Right to
Slide 44: Consolidated Cash Flow Statement
CONSOLIDATED CASH FLOW STATEMENT Particulars (INR Mn) FY24 FY23 # FY22 Pre-Tax Profit 2,708 2,481 2,044 Change in other operating activities ( including non-cash Items) (400) (432) (139) Change in Working capital (139) 116 383 Taxes Paid (net of refund) (514) (669) (572) Net cash generated from Oper
Slide 45: Financial Charts (Consolidated)
FINANCIAL CHARTS (CONSOLIDATED) Revenue from Operations Music Licensing Revenue Content Charge (INR Mn) PAT (INR Mn) (Turnover) (INR Mn) (INR Mn) 1,976 * 5,441 864 1,851 8,030 * 1,526 4,410 7,366 679 * 3,585 5,806 1,135 * 5,215 463 2,839 4,420 2,361 435 179 176 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY2
Slide 46: Quarterly Financial Summary
QUARTERLY FINANCIAL SUMMARY Particulars (INR Mn) Q1 FY25 Q4 FY24 Q-o-Q Growth Q1 FY24 Y-o-Y Growth Revenue from Operations • Music and Artist Management 1,578 1,988 (21)% 1,491 6% • Video 465 634 (27)% 122 281% • Events 10 9 11% 20 (50)% Revenue from Operations 2,053 2,631 (22)% 1,633 26% Adjusted E
Slide 47: Adjusted EBIDTA to PAT
ADJUSTED EBIDTA TO PAT Q-o-Q Y-o-Y Particulars (INR Mn) Q1 FY25 Q4 FY24 Q1 FY24 FY 24 Growth Growth Revenue from Operations (A) 2,053 2,631 (22)% 1,633 26% 8,030 Total Expenses (B) 1,373 1,767 (22)% 1,010 36% 5,001 Adjusted EBIDTA (C= A-B) 680 864 (21)% 623 9% 3,029 Adjusted EBIDTA Margin (%) 33% 33
Slide 48: Balance Sheet
BALANCE SHEET As at 30th As at 31st As at 30th As at 31st Equity and Liabilities (INR Mn) Assets (INR Mn) June 2024 March 2024 June 2024 March 2024 Shareholder's fund Non-current assets 193 193 (a) Property, plant and equipment 2,231 2,238 (a) Equity share capital (b) Right-of-use assets 30 34 (b) O
Slide 49: Cash Flow Statement
CASH FLOW STATEMENT Particulars (INR Mn) Q1 FY25 FY 24 Pre-Tax Profit 507 2,708 Change in other operating activities ( including non-cash Items) 28 (400) Change in Working capital 173 (139) Taxes Paid (142) (514) Net cash generated from Operating Activities (A) 566 1,655 Spent on New Content @ (467)
Slide 50: Disclaimer
DISCLAIMER Saregama India Ltd. Disclaimer: In evaluating our business, we consider and use non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, PAT Margin, Debt to Equity Ratio, Return on Equity, to review and assess our operating performance. These non-GAAP financial
Slide 51: Thank You
THANK YOU