Saregama India Limited · NSE:SAREGAMA
Saregama India — Investor Presentation (June 2024)
50 slides from Saregama India's investor presentation, Jun 10, 2024
Slide 1: Corporate Presentation cover letter to exchanges
Date: 10th June, 2024 The Manager, The General Manager Listing Department, Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Phiroze Jeejeebhoy Towers, Block G, Bandra – Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 051 Mumbai – 400 001 Symbol: S
Slide 2: India's Largest IP Company
I N D I A ’ S L A R G E S T I P C O M P A N Y M U S I C , A R T I S T - M A N A G E M E N T , V I D E O S , E V E N T S .
Slide 3: 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 the TV Serial production Started investing in Acquired digital entertainment song by Gauhar Jaan. company started Carvaan launched non-film music Company 1902 1946 1986 2000 2001
Slide 4: Saregama Key Financial Metrics
SAREGAMA KEY FINANCIAL METRICS Revenue From Operations (INR Mn) Adjusted EBITDA (INR Mn) PBT(INR Mn) 20% CAGR 8,030 50% CAGR 2,708 44% CAGR 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 FY17
Slide 5: Industry Overview
INDUSTRY OVERVIEW
Slide 6: The Growth of Global Music Industry Continues
The Growth of Global Music Industry Continues 0.6 Global Recorded Music Revenue Grew 10.2% to reach USD28.6 Bn in 2023 2.7 0.6 0.9 2.5 0.5 2.3 0.9 0.6 0.7 1.1 0.4 0.7 0.9 0.4 2.2 0.3 0.8 0.9 0.9 0.4 2.4 1.2 1.8 1.1 0.4 2.5 0.1 1.2 1.4 2.5 0.3 2.2 19.3 1.2 1.6 0.3 0.3 0.3 0.3 0.3 2.1 17.5 0.2 3.2 1.3
Slide 7: Subscription Business is Growing Globally
Subscription Business is Growing Globally
Slide 8: Indian Media & Entertainment Sector expected to grow with Digitisation
Indian Media & Entertainment Sector is expected to grow at 10% pa on the back of Digitisation Saregama has a play in multiple verticals of the Sector MUSIC VIDEO LIVE EVENTS ARTIST / INFLUENCER MANAGEMENT INDUSTRY SIZE (2023): INR 24,000Mn FILM INDUSTRY SIZE (2023): INR 197,000Mn INDUSTRY SIZE (2023
Slide 9: Strategic Overview: Digitisation Driving Growth
Strategic Overview Digitisation Driving Growth Digital Increase in Boom in Increase in Increase Revenue India Demand for in App Usage Content Music Streaming ~750M smartphones Spotify / Ganna / Wynk Music 22M connected TVs Social Media Films SVoD Cheap Data Driving YouTube / Facebook Web Series Driv
Slide 10: Company Overview
COMPANY OVERVIEW
Slide 11: Segmental Growth
SEGMENTAL GROWTH 23% CAGR 20% CAGR * 5,441 1,159 1,085 * 4,410 1,024 * 3,585 * 702 2,839 2% 2,361 476 521 1,949 14% 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 C. Video –
Slide 12: Strategic Overview: Pure Play Content Company
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 Through artist management, wherein arti
Slide 13: Path To Leadership Position In Music Segment
Path To Leadership Position In Music Segment Disproportionate Acquisition of Better Monetisation + + Share of Small & Mid size Music Capability New Content across Catalogues using Cash on the back of Hindi & Regional Reserves Catalogue + New Languages Content strength Deeper artiste Investments in r
Slide 14: Our Growth Strategy in Video Segment
OUR GROWTH STRATEGY IN VIDEO SEGMENT 1min – 22mins – 45mins – 120mins Pick Films and Cast primarily basis recoveries from Digital and TV licensing + Pick Series basis pre- licensing approval from a VoD /TV platform + Build D2C destinations for Youth-targeted content Generate Brand Retain IP + Sponso
Slide 15: Music Segment
MUSIC SEGMENT LICENSING, RETAILING & ARTIST MANAGEMENT
Slide 16: Music Segment: Licensing
Music Segment : Licensing Music Catalogue of the Golden Era across Languages Share of Saregama’s Songs by language Others 14% Bhojpuri 1% Kannada 2% Hindi Gujrati 3% 28% Malayalam 5% 150K+ Marathi 5% Punjabi 6% Bengali Telugu 20% 7% Tamil 9%
Slide 17: Revenue from Catalogue Music continues to grow
Music Segment : Licensing Revenue from Catalogue Music continues to grow 3-pronged strategy to maximize Catalogue Revenue Releasing Derivatives Encouraging User Occasion based promotion relevant to younger Generated Cover versions of the Original song generation • Share Royalty with the • Instagram
Slide 18: Saregama, the music label is Changing
Music Segment : Licensing Saregama, the music label is Changing Share of Licensing Revenue from 21st century songs growing (52% in FY24 Vs 48% in FY23) FY23 150k+ songs generated Licensing Revenue INR 5,441 Mn * Era wise Breakup 2021-2024 14% 33% 2001-2020 22% 19% 1981-2000 24% 20% 1961-1980 24% 25%
Slide 19: Chartbuster Songs of 2023: Hindi and Bhojpuri
Music Segment : Licensing Chartbuster Songs of 2023 Hindi Bhojpuri Songs Released songs of Saregama Songs Released songs of Saregama entered entered Industry Saregama 26 Spotify Mumbai Industry Saregama 53 Spotify Patna local 1600+ 195+ local pulse chart 1900+ 170+ pulse chart Count of weeks on Spot
Slide 20: Chartbuster Songs of 2023: Telugu and Malayalam
Music Segment : Licensing Chartbuster Songs of 2023 Telugu Malayalam Songs Released songs of Saregama Songs Released songs of Saregama entered entered Industry Saregama 77 Spotify Hyderabad Industry Saregama 53 Spotify Kochi local 700+ 160+ local pulse chart 281+ 125+ pulse chart Count of weeks on S
Slide 21: Chartbuster Songs of 2023: Tamil and Gujarati
Music Segment : Licensing Chartbuster Songs of 2023 Tamil Gujarati Songs Released songs of Saregama Songs Released songs of Saregama entered entered Industry Saregama 94 Spotify Chennai Industry Saregama 25 Spotify Ahemdabad 650+ 200+ local pulse chart 500+ 100+ local pulse chart Count of weeks on S
Slide 22: Chartbuster Songs of 2023: High Success Ratio
MUSIC : CONTENT CREATION Chartbuster Songs of 2023 YouTube : 100M views Club 470M+ 290M+ 240M+ 240M+ 240M+ 190M+ 130M+ 110M+ Views from all versions of the song, including lyrical, uploaded on Saregama’s official YouTube channel. Does not include UGC views Data Mining Based Predictive Models I Decen
Slide 23: Our New Music Partners
Music Segment : Licensing Our New Music Partners
Slide 24: Major Film Releases FY25: Hindi
Music Segment : Licensing Major Film Releases FY25: Hindi Movie: Bad Newz Movie: Sky Force Movie: Stree 2 Movie: Jigra Movie: Sarzameen Cast: Vicky Kaushal, Ammy Cast: Akshay Kumar, Sara Ali Cast: Shradha Kapoor, Cast: Alia Bhatt Cast: Kajol ,Ibrahim Ali Khan Virk, Tripti Dimri Khan Varun Dhawan No.
Slide 25: Major Film Releases FY25: Kannada
Music Segment : Licensing 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, Simrat Cast : Challenging Star Darshan Cast : Kiccha Sudeep Cast : Dr. Shiva Rajkumar C
Slide 26: Major Film Releases FY25: Tamil
Music Segment : Licensing 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, Divya Cast : Vijay Antony, Fariah Cast : Prabhu Deva, Aisw
Slide 27: Major Film Releases FY25: Telugu
Music Segment : Licensing 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, Divya Cast : Prabhas, Amitabh Bachchan, Cast : Sathya Dev, Aathira Ra
Slide 28: Major Film Releases FY25: Malayalam
Music Segment : Licensing Major Film Releases FY25: Malayalam Movie Name : Bazooka Movie Name : Nunakuzhi Movie Name : Pavi Caretaker Movie Name : Nadanna Sambavam Movie Name : Guruvayoor Ambalanadayil Cast : Mammootty, Goutham Cast : Basil Joseph Cast : Dileep Cast : Biju Menon, Suraj Cast : Prithi
Slide 29: Making Money from Music Licensing
Making Money from Music Licensing Audio OTT Video OTT Film Music Publishing Original Sponsorships Monetise Create Music (&market) • Established Artistes • Saregama Talent • New Artistes Societies Catalogue Derivatives Live Events Artiste Mgt. PocketAces
Slide 30: Music Segment: Licensing YouTube views and subscribers
Music Segment : Licensing YouTube views in Bn p.a. YouTube Subscribers in Mn 373 52% CAGR 33% CAGR 107 84 202 64 132 44 104 34 69 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Includes all views related to Saregama IP across it’s owned channels and user generated content on YouTube and YouTube S
Slide 31: 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 channels on YouTube with a cumulative subscriber • Saregama licenses its music to various OTT platforms for bas
Slide 32: Making Money from Music Licensing
Making Money from 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 serial
Slide 33: Music Segment: Retailing
Music Segment : Retailing Carvaan volume (in lakhs) Product wise Volumes FY24 9.1 7.4 6.9 19% 5.6 47% 3.9 4.0 3.5 34% FY18 FY19 FY20 FY21 FY22 FY23 FY24 Carvaan Mini Mobile
Slide 34: Music Segment: Artist Management
Music Segment : Artist Management Rj Karishma Neel Salekar Saurabh Ghadge Sandeepa Dhar RJ Princy Pranav Chandran Raghav 7.1M Followers 2.9M Followers 2M Followers 2.7M Followers 1.3M Followers 333K Followers 81.6K Followers Ayush Mehra Viraj Ghelani Abhinav Yadav Revathi Pillai Nitibha Kaul Gurdeep
Slide 35: Music Segment: Artist Management
Music Segment : Artist Management
Slide 36: Making Money from Artist Management
Making Money from Artist Management A. Pocket Aces - Clout B. Saregama : Talent and Exclusive Artiste Clout, which is Pocket Aces’ talent management division, In FY24 Company launched its newer vertical under Music exclusively manages 125+ influencers having a follower base of Monetisation, Artiste
Slide 37: Music Segment: New Initiative
Music Segment : New Initiative
Slide 38: Video Segment
VIDEO SEGMENT FILMS & SERIES, TV AND DIGITAL CONTENT
Slide 39: Video Segment: Films & Series
Video Segment : Films & Series • Yoodlee Films is Saregama’s production house focussed on creating content for theatrical releases and 3rd party digital platforms & TV • Pocket Aces, through its studio Dice Media, creates premium web-series content for OTT platforms. • Company issues period-based li
Slide 40: Video Segment: FY24 Releases
Video Segment : Films & Series FY24 Releases Kasargold Malaikottai Vaaliban Warning 2 Anweshippin Kandethum Crushed Season 4 Chote Nawab (Hindi) (Malayalam) (Malayalam) (Punjabi) (Malayalam) (Hindi) Release: Feb, 2024 Release: Sep, 2023 Release: Jan, 2024 Release: Feb, 2024 Release: Feb, 2024 Releas
Slide 41: Video: Films & Series Upcoming Releases
Video : Films & Series Upcoming Releases Shinda Shinda No Papa Ni Main Sass Kuttni 2 Bazooka (Malayalam) (Punjabi) (Punjabi) Nunakuzhi (Malayalam) Manik Basha (Tamil) Agra (Hindi)
Slide 42: Video Segment: TV Serials
Video Segment : TV Serials • Saregama is leading TV series content producer for Southern channels. In the past, it also produced shows for Hindi GECs, but due to IP ownership, it decided to focus on business where the company can retain the IP. It now produces TV content in South Indian languages •
Slide 43: Video Segment: D2C Channels
Video Segment : D2C Channels • Pocket Aces creates and publishes content through its owned distribution channels on YouTube, Facebook, Instagram, and Snapchat. • Pocket Aces primarily owns 5 channels FilterCopy, Nutshell, Dice Media, Gobble & Pocket Change, which boasts a total follower base of over
Slide 44: Financials
FINANCIALS
Slide 45: 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 46: 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 47: 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 48: 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 7,366 1,526 * 4,410 679 * 5,806 3,585 5,215 1,135 * 463 4,420 2,839 2,361 435 179 176 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY2
Slide 49: 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 50: Thank You
THANK YOU