Nation Media Group Limited · NSEKE:NMG
Nation Media — H1 2019 Earnings Presentation
48 slides from Nation Media's earnings presentation, Aug 28, 2019
Slide 1: Investor Briefing: 2019 Half Year Performance
INVESTOR BRIEFING 2019 HALF YEAR PERFORMANCE WEDNESDAY 28TH AUGUST 2019
Slide 2: Agenda
AGENDA Business Objective & Updates H1 Highlights H1 Group Results Q&A 2
Slide 3: Our Products
Our Products Kenya Uganda Tanzania Rwanda 3 www.nationmedia.com
Slide 4: Our Values
Our Values Continuous Improvement Consumer Focus We are a team & Innovation Integrity & Trust Drive for Performance 4 Inspiring leadership; Team work; Continuous improvement
Slide 5: Business Objective & Updates
Business Objective & Updates 5
Slide 6: We are clear on our business objective
We are clear on our business objective We are a content company Our competitive edge will be based on content Digital, Innovation & Our values Are enablers to achieve the business objective Purpose for NMG To transform society in a sustainable manner 6
Slide 7: Growing content business and creating new value
Growing content business and creating new value Develop new Strengthen the bond Investing in the right Quality, Credible & products to maintain with audiences talent and capabilities Trusted Content competitive edge Innovate to continuously Strengthen performance Growing the top line Productivity &
Slide 8: Business Model
Business Model TRADITIONAL CURRENT Media Advertiser Consumer Invest in understanding the consumer to develop products that connect and engage them Diversifying revenue opportunities (advertiser and consumer) Adopt the right distribution model to engage audiences (Enhanced user experience) 8
Slide 9: Our Action Agenda
Our Action Agenda 1 Track and understand the changing needs of the CONSUMER 2 Produce dynamic CONTENT that evolves with its user 3 Deliver superior USER EXPERIENCE (Across platforms) 4 Leading societal conversations by LIVING OUR VALUES (Always) 5 Recruit and grow AUDIENCES (Across platforms) 9
Slide 10: Digital Footprint
DIGITAL Footprint Footprint (in millions) 27.9 10 *367# for Breaking News Alerts in English & Swahili
Slide 11: Investment in understanding our audiences
Investment in understanding our audiences Data Scientists, Data Analysts, Data Engineers Capacity Building & Training Tablaeu, Microsoft Power BI,, Google Analytics 360, Oracle Data Management Platform Tools & Technology • Created a foundation for user/customer journey analytics and basic personas o
Slide 12: Protecting Nation journalism
Protecting Nation journalism Integrity & Quality Professionalism Talent Management Partnerships 12 Sustainability dependent on content quality
Slide 13: Content monetisation
Content monetisation Mobile Apps Product improvement • Healthy Nation • Daily Nation • Seeds of Gold • Saturday Nation • MyNetwork • Sunday Nation • The East African Content Focus Gateway Syndication • Premium content • Video • Micropayments • Graphics • Term subscription • Photos • Stories (Payment
Slide 14: E-Paper Subscription Trend
E-Paper Subscription Trend 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2017 2018 2019 Year/Month Subscribers 14 Subscription growth of 67% in the last 12 months
Slide 15: Monetising digital audiences
Monetising digital audiences Use of analytics, research Targeted advertising and insights to drive client objectives Refining communication Building Strategic Partnerships 15 channels
Slide 16: An online movie and events ticketing platform
An online movie and events ticketing platform 16 • Integrated majority of movie cinemas in Nairobi on KenyaBuzz • Site revamp to provide an unparalleled user experience
Slide 17: LIT MUSIC
Through our TV programmes, radio shows, Label artists and events, LIT MUSIC brings the BIGGEST moments in music entertainment to fans LIT MUSIC is Kenya’s newest and most exciting record label that brings together the newest, most talented and diverse artists Kenya has to offer. 17
Slide 18: Redemption Noni
REDEMPTION NONI WE PROMOTE OUR MUSIC TALENT THROUGH A 360 DEGREES COVERAGE ACROSS ALL OUR PLATFORMS IN BROADCASTING, PRINT AND DIGITAL. MWENYE HAKI s}siINy INO
Slide 19: Shera, Vanessa, Badderman
SHERA VANESSA BADDERMAN Laie
Slide 20: Performing every Friday at Westgate Pop Up Market
20 Performing every Friday from 6pm at the Westgate Pop Up Market
Slide 21: Events objective
Events objective Protect & Enhance NMG’s Reputation Shape conversations Content development Strong valuable stakeholder relationships Enrich discourse on key issues Contribute development agenda Generate unique content Aligned to NMG’s core purpose of Repurposed across platforms quality jo
Slide 22: 2019 Events Update
2019 Events Update Live2Lead with John Maxwell The Leading Woman October 11th , 2019 Seeds of Gold: Farm Clinic Q4, 2019 Serena Hotel - Nairobi Top 100 Survey (Kenya) Narok, Thika, Kajiado Currently accepting entries MyNetwork Career Fair Top 40 Under 40 women Westgate Auto Show NTV On The Road Nomi
Slide 23: Thought Leadership Forums
Thought Leadership Forums Mwananchi Thought Nation Leadership Mwananchi Thought Nation Leadership Leadership Forum Forum Leadership Forum Forum Theme: The Charcoal Theme: Securing our Theme: Our Agriculture, Our Theme: The Next question in our Economy Safety Lifeline Generation of Work and the Envir
Slide 24: NMG at 60 Activities
NMG at 60 Activities Objective: Celebrate 60 years of being a true, trusted & independent champion of society while also building a basis for NMG’s sustainability 1. Distributor Conference 3. Two day conference with all NMG distributors across the country to strengthen valuable relationships with th
Slide 25: KUSI Ideas Festival
KUSI Ideas Festival The theme will be “The Next 60 Years in Africa” and will bring together diverse influential leaders, innovators, young entrepreneurs and some of the best policy minds on the continent including Heads of State. 25
Slide 26: NTV Programming
NTV Programming 26 Strong news & entertainment content to drive growth of audiences
Slide 27: NTV Features
27 NTV Features ——— roy]
Slide 28: NTV Revamp
NTV Revamp • News • Current affairs • Investigative journalism • Features 28 • Entertainment
Slide 29: QTV Re-launch
QTV Re-launch 29
Slide 30: Highlights
Highlights 30
Slide 31: Corporate Social Responsibility
Corporate Social Responsibility Laikipia County Rehabilitation Mama Fatuma Goodwill Murumba Primary Sch. Kiwandani Primary Sch. Centre Children’s Home March 22nd, 2019. May 17th, 2019. May 23rd, 2019. July 19th 2019. The school serves a The facility serves as a The facility caters for 65 The school
Slide 32: Annual Journalism Excellence Awards 2019
Annual Journalism Excellence Awards 2019 Winners: Business Print – John Kamau Gender Print – Angela Oketch Sports Print – Celestine Olilo Fertilizer politics and how the Kenya’s first human milk bank Rotting in jail: The footballing factory was derailed. finally ready to save babies’ lives talent we
Slide 33: Excellence Awards
Excellence Awards Winners: Eunice Omollo (Overall) Rose Wangui Best Health Reporting - Africa Media Health Network Winner – Knight International Journalism Award Awards Sharon Baranga Eunice Omollo (TV Category) Best report for Early Childhood Education Best Health Reporting - Africa Media Health Ne
Slide 34: H1 2019 Group Results
H1 2019 Group Results 34
Slide 35: Performance Drivers
Performance Drivers DATA Data & Analytics Audience Content Monetisation Monetisation E-Paper Partnerships NMG@60 Productivity & 60th Anniversary Enhancement of Sector-based Debt Efficiency Digital Structure selling Celebrations Newsprint Challenging business Interest income Currency 35 price increas
Slide 36: H1 Performance Highlights
H1 Performance Highlights >100 >100 25% 24% 15% % % Cash generated from Digital Copy Sales Music Kenya Buzz Google Ads operations 36
Slide 37: Turnover
Turnover Trend (Kshs m) 5,635 6,000 5,274 4,923 5,000 33.6 30 9.25 4,580 4,000 7.9 Turnover 3,000 2,000 20.2k 16.9k 1,000 - 24.32019 37 2016 2017 Year 22.1 2018
Slide 38: Direct Costs (Kshs m)
Direct Costs (Kshs m) 1,200 1,054 956 970 1,000 851 800 33.6 30 9.25 7.9 Cost 600 400 20.2k 16.9k 200 - 2016 2017 24.3 2018 2019 38 Year 22.1
Slide 39: Operating Costs (Kshs m)
Operating Costs (Kshs m) 3,436 3,500 3,310 3,147 3,030 3,000 33.6 30 9.25 7.9 Cost 2,500 20.2k 16.9k 2,000 2016 2017 24.3 2019 2018 39 Year 22.1
Slide 40: Total Costs (Kshs m)
Total Costs (Kshs m) 4,490 4,103 4,161 4,500 4,000 33.6 30 9.25 3,500 7.9 Cost 2,500 20.2k 16.9k 1,500 2016 2017 24.3 2019 2018 40 Year 22.1
Slide 41: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income ( Kshs m) June June 2019 2018 % change Turnover 4,580.4 4,923.1 (7.0) Profit before income tax 580.8 761.8 (23.8) Income tax expense (177.1) (232.6) 23.9 Profit after income tax 403.7 529.2 (23.7) Other comprehensive income 13.0 (74.2) 117.5 Total compr
Slide 42: Statement of Financial Position
Statement of Financial Position ( Kshs m) June December 2019 2018 Capital and reserves Share capital 471.4 471.4 Other reserves (124.0) (136.4) Retained earnings 6,946.7 6,826.0 Proposed dividends 942.7 659.9 8,236.8 7,820.9 Non controlling interest 57.5 56.7 Total equity 8,294.3 7,877.6 Non-current
Slide 43: Condensed Cash Flow Statement
Condensed Cash Flow Statement (Kshs m) June December 2019 2018 Cash generated from operations 967.6 1,142.2 Tax paid (382.0) (566.6) Net cash from operating activities 585.6 575.6 Net cash used in investing activities 141.8 309.2 Net cash from financing activities - (1,697.4) Increase in cash and ca
Slide 44: Interim Dividends
Interim Dividends 44
Slide 45: Dividend per Share and Earnings Per Share
Earnings Per Share (Kshs) Interim Dividend (Kshs) 2 2 1.50 1.50 2.41 2.4 1 2 2.2 2.21 Dividend per Share (Kshs) 1 Earnings Per Share (Kshs) 2 1 2 1 2 1 2 0 2 0 02 0 2018 2019 2018 2019 Year Year 45
Slide 46: 46
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Slide 47: Our Products
Kenya Our Products Nation.co.ke ntv.co.ke/live businessdailyafrica.com Taifaleo.nation.co.ke Kenyabuzz.com Theeastafrican.co.ke Nariobinews.nation.co.ke @Daily Nation @BusinessDailyAfrica @NTV Kenya @Taifa_Leo @KenyaBuzz @TheEastAfrican @nairobinews Daily Nation NTV Kenya @BD_Africa Taifa Leo Kenya
Slide 48: www.nationmedia.com
48 www.nationmedia.com a Nation Media Group e&