Jagran Prakashan Limited · NSE:JAGRAN
Jagran Prakashan — Investor Presentation (November 2014)
57 slides from Jagran Prakashan's investor presentation, November 2014
Slide 1: Jagran Prakashan Limited (JPL) Investor Presentation
Jagran Prakashan Limited (JPL) Investor Presentation November 2014
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Jagran Prakashan 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 secu
Slide 3: JPL: India's Media Conglomerate
JPL: India’s Media Conglomerate Hindi Publications Other Publications Dainik Jagran: Mid Day : Flagship Brand of the Group, Only Afternoon Paper of Mumbai No. 1 Daily of the Country with Highest Readership Others : Nai Dunia /Nav Dunia: Punjabi Jagran, Midday Gujarati, I-Next, Inquilab, City Plus, J
Slide 4: JPL: The Largest Read Print Media Group of India
JPL… The Largest Read Print Media Group of India 68 mn Readers 121 Editions, 15 States 12 Publications, 5 Languages Dainik Jagran: India’s #1 Daily Hindi Publications (Dainik Jagran I-Next: India’s only Bilingual Nai Dunia/Nav Dunia) Compact Daily Other Publications Mid-day: India’s #1 Afternoon Dai
Slide 5: Growing across all parameters
… Growing across all parameters 2008 2014 Publications 5 12 States 12 15 Language 2 5 Readership 56 mn 68mn , Circulation (Daily) 2.8 mn 5.3 mn Source: IRS 2012 Q4 Circulation of Weekly, Fortnightly & Monthly Publications adjusted for Daily 5
Slide 6: Print Media – Offering large Opportunity
Print Media – Offering large Opportunity 6
Slide 7: Print Media Growing Consistently in India
Print Media Growing Consistently in India… 2009-13 Revenue CAGR: 8.4% Low Print Media 244 Advertising : 10.3% Penetration 225 Circulation : 5.7% 208 Rising Literacy 193 81 175 75 More local than other 69 media platforms like 67 Television 65 “Door to Door” 163 Distribution Network 150 139 12
Slide 8: Print Media, India – A Growth Market
Print Media, India – A Growth Market CAGR (2013 -18) : 9.0% Contrary to trend in CAGR (2008–13) : 7.2% Developing economies, Print Industry consistently growing in India 374 243 172 2008 2013 2018 P Source: FICCI-KPMG Indian Media and Entertainment Industry Report 2014, Newspaper Association of Am
Slide 9: Print Media - Key Growth Drivers
Print Media - Key Growth Drivers Low Print Media Penetration Rising Literacy More local than other media 80.0 74.0 64.8 platforms like Television 60.0 52.2 43.6 “Door to Door” Distribution 40.0 % Network 20.0 0.0 Higher ‘Attention Span’ makes it 1981 1991 2001 2011 Census attractive for adve
Slide 10: Hindi Print Advertising expected to be largest in 2018
Hindi Print Advertising expected to be largest in 2018 2009 2013 2018 OIL* OIL* OIL* 27% 31% 34% Hindi English Hindi Hindi English English 28% 45% 31% 38% 36% 30% Hindi Advertising to grow at ~14% CAGR – Share of Hindi Print expected to increase from 31% in 2013 to 36% in 2018 – Advertisers expect
Slide 11: JPL : Hindi Publications
JPL : Hindi Publications 11
Slide 12: Dainik Jagran… The Group's Flagship Brand
Dainik Jagran… The Group’s Flagship Brand India’s largest read daily Newspaper 56 mn Readers 38 Editions, 11 States Consistent Growth in circulation Quality of readership Most credible and trusted newspaper in # 1 with 11.7 mn readers in NCCS A India* Source: IRS 2012 Q4 * Source: Globescan survey c
Slide 13: Strong leadership in Uttar Pradesh
Strong leadership in Uttar Pradesh 2nd Largest State in GDP terms 8.1 % contribution in India’s GDP Home to 20 Crs People 16.5% of India’s Population 11.4 Crs literate Population 49% of which not reading Newspaper USD 54 bn Annual Consumer Spend 12% of India Large no. of Tier II cities Target market
Slide 14: Uttar Pradesh… Highest Consumer Spend
Uttar Pradesh… Highest Consumer Spend Total Consumer Spend in Hindi States USD 189 billion in 2011-12 Consumption in Hindi States is 43% Total Consumption As % to All India States (USD Billion) Consumption of total consumption in India Uttar Pradesh 54 12% Bihar 24 6% JPL States cover 87% of Con
Slide 15: Nai Dunia - expanding geographical reach
Nai Dunia - expanding geographical reach Strong local Hindi Daily in Madhya Pradesh & Chhattisgarh Advertising Revenue Circulation – Acquired in 2012 (Rs. Crores)^ (in 000)^ Madhya Pradesh & Chhattisgarh offers huge growth potential FY14 98 Mar-14 607 – Literacy rate of 62% FY13 75 Mar-13 505 –
Slide 16: JPL Hindi Publications Consistently maintaining leadership over a decade
JPL Hindi Publications Consistently maintaining leadership over a decade Top 3 Dailies in India JPL Hindi Publication Readership - By Readership* By States* JPL Hindi Publications 18% 62 mn readers 5% Peer 1 51% 11% 39 mn readers 7% 2% Peer 2 3% 3% 35 mn readers UP Bihar Jharkhand MP & CG Haryana &
Slide 17: JPL Hindi Publications covers nearly half of Indian Population
JPL Hindi Publications..covers nearly half of Indian Population Population Literate Population Consumer Spend Non- Non- Non- Hindi Hindi Hindi States States States 43% 46% 50% Raj. Raj. Raj. JPL 6% JPL 5% JPL 6% Hindi Hindi Hindi WB WB WB States States States 7% 8% 7% 44% 41% 37% JPL Hindi States
Slide 18: JPL Hindi Publications' Strong Presence in Tier II & III cities
JPL Hindi Publications’ Strong Presence in Tier II & III cities… Surge in purchasing power of Tier II & III JPL Hindi Publication Presence in Cities 32 out of 62 Tier II Cities of India – Changing demographic dynamics – Consumption of consumer durables, automobiles and financial products growing O
Slide 19: Digital… No visible impact on Hindi Print Media
Digital… No visible impact on Hindi Print Media Digital – No visible impact on Hindi Print Media despite high growth in terms of number of internet connection – Lacks quality in terms of internet connection speed – Consumer spends very little time on News Sites – Very limited content in Hindi / Lo
Slide 20: Internet Connections growing with Low Quality
Internet Connections growing with Low Quality 463 Challenges in Growth 47 392 Inadequate network coverage 41 331 because of limited 3G towers 36 268 Limited spectrum availability 31 213 416 High Price of data services 174 27 351 24 295 Lack of affordable of 3G handsets 237 186 Patchy conne
Slide 21: However, Lowest Internet Connection Speed
However, Lowest Internet Connection Speed… Avg. Connection Speed (mbps) Broadband Connectivity (% above 4 mbps) 13.3 83% 82% 75% 9.8 8.8 2.9 20% 20% 2.4 1.4 3% Brazil China India Japan USA Canada Brazil China India Japan USA Canada Source: FICCI-KPMG Indian Media & Entertainment Industry Report 2014
Slide 22: ... & lacks quality of experience
... & lacks quality of experience Users by device split Internet enables Mobile Handset Prices (% market share) 1% 9% 11% 84 39% 57% 130 22% 61% Rs. <10,000 Rs. 10,001 - 14,000 Laptop/Desktop Mobile Rs. 14,001-18,000 Rs. 18,001-30,000 Rs. >30,000 61% of Internet Connection through 57% of uses en
Slide 23: JPL Hindi Publication….Low internet penetration
JPL Hindi Publication….Low internet penetration Total Population # Internet Subscribers India 1,211 210 17.3 % Uttar Pradesh 200 21* 10.5 % Bihar 104 10^ 9.6 % MP & CG 98 11 11.2 % 33% of Total 20% of Internet India’s Subscriber Population Base … doesn’t have visible impact on [in Million] Hindi New
Slide 24: JPL : Other Publications
JPL : Other Publications 24
Slide 25: Mid Day provides an entry in to three languages
Mid Day provides an entry in to three languages Mid-Day English Niche Afternoon Daily targeted as Focus on improving performance leisure read – Discontinue “Ad for Equity” deals 13 Lacs readers – Focus on improving Per copy realizations Re-launched to strengthen the youth focused strategy /
Slide 26: Other Publications
Other Publications Punjabi Jagran City Plus With a huge local language India’s No.1 Community Paper acceptance, Punjabi Jagran circulated across Mumbai, completes the bouquet in Delhi, Hyderabad, Banglore & Punjab Pune with 43 editions adding value to brand Jagran I-Next India’s first bilingua
Slide 27: JPL : Digital Business
JPL : Digital Business A New Thrust Area 27
Slide 28: Why we are bullish for Digital Business
Why we are bullish for Digital Business FY 13 - 18 India Internet Connection CAGR: 21.6 % India is 3rd largest Internet Wireline connection: 14.4 % 463 Market with 137 mn Urban Wireless connection: 22.6 % 47 and 68 mn Rural Users 392 Growth in Internet 41 331 connections mainly due to 36 higher
Slide 29: Translating in Advertising Revenue Growth
Translating in Advertising Revenue Growth FY 13 - 18 Advertising Revenue CAGR: 27.7 % Top Digital spenders sectors Desktop Internet Advertising : 25.5 % during FY 2013 – Auto (13%), Mobile Advertising : 41.2 % 102.3 BFSI (12%), Travel (12%) and 88.1 Telecom (14%) 19.1 69.7 15.1 Share of Digital
Slide 30: Jagran – Well prepared to capitalize opportunity
Jagran – Well prepared to capitalize opportunity JAGRAN NEW MEDIA 30
Slide 31: 62 mn Unique Visitors
62 mn Unique Visitors Source: Google Analytics May 2014 data Google Analytics includes Traffic coming from India, International - Web and Mobile Users 31
Slide 32: Sites with Maximum Unique Visitors
Sites with Maximum Unique Visitors 11 10 10 8 8 8 7 6 5 4 3 Unique Visitors (in million) Source: ComScore Data - Average of 3 months - April 2014 to June 2014 ComScore covers India only web traffic (Doesn’t include Mobile & International Traffic) 32
Slide 33: Jagran.com - No. 1 Hindi News Portal
Jagran.com - No. 1 Hindi News Portal Maximum Number of Unique Visitors 4,639 on Hindi News Portal 3,105 2,563 55 Jagran.com Bhaskar.com Navbharat Times Aajtak.in Unique Visitors (‘000) Source: ComScore Data - Average of 3 months - April 2014 to June 2014 ComScore covers India only web traffic (Doesn
Slide 34: Higher Unique Visitors across category
Higher Unique Visitors across category Education Portal Health Portal 5,419 2,264 1,938 2,021 682 1,288 855 104 Unique Visitors (‘000) Source: ComScore Data - Average of 3 months - April 2014 to June 2014 ComScore covers India only web traffic (Doesn’t include Mobile & International Traffic) 34
Slide 35: Initiatives to further Strengthen Mobile Platform
Initiatives to further Strengthen Mobile Platform CROSS PLATFORM JAGRAN POST JAGRAN HINDI NEWS LAUNCHED FIRST NEWS MOBILE AND WEB LAUNCHED ON THE APP AND BBM CHANNEL ON THE PUBLISHING PLATFORM AWARD WINNING CHANNEL POPULAR MESSAGING FOR E-PAPERS PULSE NEWS APP INTEGRATION APP 35
Slide 36: The Strategy…
The Strategy… Leverage Credible News Content of JAGRAN to strengthen DIGITAL presence Capitalizing on Growing Mobile Traffic Building Video Content Focus on User Generated Content Increase Foot hold in Non JAGRAN Markets Covering all major events Focus on Content Acquisition, Distribut
Slide 37: JAGRAN NEW MEDIA… Ready for Future Opportunities
JAGRAN NEW MEDIA … … READY FOR FUTURE OPPORTUNITIES Source: ComScore - June 14 ComScore covers India only web traffic (Doesn’t include Mobile & International Traffic) 37
Slide 38: JPL : Other Businesses
JPL : Other Businesses 38
Slide 39: Other Businesses
Other Businesses Activation Business OOH Business Core focus areas End to end OOH solutions – Brand Activations – Planning – Rural Marketing – Creative adaptations – Activation Auditing & Consulting – Data on traffic count – Retail & ISP – Post campaign results 39
Slide 40: Consolidated Financial Highlights
Consolidated Financial Highlights 40
Slide 41: Financial Highlights of Quarter Ended September 30, 2014
Financial Highlights of Quarter Ended September 30, 2014 41
Slide 42: Consolidated Quarterly Profitability Statement
Consolidated Quarterly Profitability Statement Rs. in Crs Q2 FY15 Q2 FY14 YoY Overall Advertisement Growth of Revenues 436.3 412.4 6% 8% despite subdued activity in Advertisement Revenue 306.9 284.2 8% Advertising Circulation Revenue 96.5 88.6 9% Dainik Jagran Advertisement Others 32.9 39.6 Reve
Slide 43: Operating Margin break-up
Operating Margin break-up Publications (Rs. Crs) Q2 FY15 Q2 FY14 Q1 FY15 H1 FY15 H1 FY14 Continued Operating Losses in Dainik Jagran Other Publications : Operating Revenue 336.0 302.4 335.9 671.9 612.7 – Mainly due to Continued Investments in NaiDunia as a Operating Profit 110.3 99.6 114.2 224.5 2
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. in Crores Sept. ‘14 Mar. ‘14 Rs. in Crores Sept. ‘14 Mar. ‘14 Shareholder’s Fund 1,070.0 961.6 Non-current assets 989.5 1,095.4 Share capital 62.3 62.3 Fixed assets 645.1 672.5 Reserves & Surplus 1,007.7 899.4 Goodwill on consolidation 232.3 232.3 Minority Interest 0.9
Slide 45: Net Cash as on September 2014
Net Cash as on September 2014 Rs. Crs. Rs. Crs. Mar ’14 Sept’14 64.3 Cash & Bank Balance 32.5 139.5 Investments * 325.1 301.7 March '14 Sept. '14 Gross Cash Balance (A) 357.6 441.2 Rs. 196 crs Borrowings (B) 489.7 376.9 Net Cash (A-B) -132.0 64.3 * Investments includes Investment in Mutual Fund and
Slide 46: Historical Financial Highlights
Historical Financial Highlights 46
Slide 47: Consistent Growth in Revenue : Higher than Industry
Consistent Growth in Revenue : Higher than Industry FY09-14 Revenue CAGR: 15.6% Advertising: 16.5% ( Industry : 10.3% ) Circulation: 12.8% ( Industry : 5.7% ) 1,703 1,522 158 1,355 1,221 154 359 152 315 942 129 824 265 238 88 75 216 197 1,186 1,053 854 938 552 638 FY09 FY10 FY11 FY12 FY13 FY14 Adver
Slide 48: Consolidated Annual Profitability Statement
Consolidated Annual Profitability Statement FY 13 : Consolidation effect of Rs. in Crores FY14 FY13 YoY Suvi Info (Naidunia) acquisition: Revenues 1,703 1,522 12% – Other Income of Rs. 95 Crs. Advertisement Revenue 1,186 1,053 & Rs. 3 Crs for Profit arising Circulation Revenue 359 315 on intra gro
Slide 49: EBITDA
EBITDA 19% 30% 29% 23% 19% 22% 382 357 317 296 282 157 FY09 FY10 FY11 FY12 FY13 FY14 [Rs. Crores] 49
Slide 50: Operating Margin break-up
Operating Margin break-up Publications (Rs. Crs) FY 12 FY 13 FY 14 Continued Operating Losses in Other Dainik Jagran Publications : Operating Revenue 1,068.41 1,127.59 1,258.0 – Mainly due to Continued Investments Operating Profit 320.69 345.64 413.4 in NaiDunia as a part of strategy to increase t
Slide 51: Net Profit
Net Profit FY 13 : Consolidation effect of Suvi Info (Naidunia) acquisition: – Other Income of Rs. 95 Crs. 11% 18% 17% 13% 17% 13% & Rs. 3 Crs for Profit arising on intra group elimination 255 of debentures & shares respectively 226 – Depreciation & amortization 208 of Rs. 50 Crs. for Goodwill 178
Slide 52: Adjusted PBT & PAT
Adjusted PBT & PAT FY 2014 FY 2013 Growth Profit Before Tax 305.7 255.2 19.8% Add Forex loss / (Gain) 16.2 9.5 Less Exceptional items 25.8 45.0 Adjusted PBT 296.1 219.7 34.8% Less Tax @ 26% (Effective tax rate for the year) 77.0 57.1 Adjusted PAT 219.1 162.5 34.8% 52
Slide 53: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. in Crores March-14 March-13 Rs. in Crores March-14 March-13 Shareholder’s Fund 962 932 Non-current assets 1,095 1,124 Share capital 62 63 Fixed assets 672 677 Reserves & Surplus 899 869 Goodwill on consolidation 232 232 Minority Interest 1 1 Non-current investment 128
Slide 54: Consistently Generating High Return on Equity
Consistently Generating High Return on Equity 27% 23% 24% 30% 29% 16% 932 962 702 752 560 613 FY09 FY10 FY11 FY12 FY13 FY14 Networth RoE [Rs. Crores] 54
Slide 55: Cash flow Highlights
Cash flow Highlights Rs. Crs. FY14 FY13 A Net Surplus/(Deficit) Generated from Operations 330.5 201.80 B Surplus / (Deficit ) from Investing Activities -169.8 -163.9 B1 Net CAPEX -49.72 -96.11 B2 Other Investing Activities -120.08 -67.79 C Surplus / (Deficit) from Financing Activities -188.4 -31.4 C
Slide 56: High Profit Sharing with Shareholders
High Profit Sharing with Shareholders 60% 53% 62% 49%* 56% ** 7.7 7.2 6.6 5.8 5.6 3.8 4.0 3.5 3.5 3.5 FY10 FY11 FY12 FY13 FY14 Payout DPS EPS * Including Buyback of Rs. 47.5 crores ** Includes Proposed Dividend of Rs. 3 per equity share 56
Slide 57: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Jagran Prakashan Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L22219UP1975PLC004147 CIN: U74140MH2010PTC204285 Mr. Amit Jaiswal Ms. Payal Dave / Mr. Jigar Kavaiya amitjaiswal@jagran.com dpayal@sgapl.net / kjigar@sgapl.
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