Saregama India Limited · NSE:SAREGAMA
Saregama India — Q4 FY2018 Earnings Presentation
19 slides from Saregama India's earnings presentation, 2018
Slide 1: Investor Update Q4 17/18
§ A R E G A MA “ FROM THE DIRECTOR OF MY me S A R c 6 A MA CARVAAN mee = CARVAAN OG) ae aa NU aING BENGAL! | <ISeff NOW IN CHERRYWOOD RED COLOR Investor Update Q4 17718
Slide 2: Cautionary Statement
Cautionary Statement Statement in this “Management Discussion and Analysis” describing the company’s objectives, projections, estimates, expectations or predictions may be “ forward looking statements” within the meaning of applicable securities law and regulations. Actual results could differ mater
Slide 3: Strategic Direction
Strategic Direction Monetise Existing IP Better, Build IP for Tomorrow • Higher monetisation of existing IP ( 1.2L owned songs & 4100 hours of Tamil serials) • through greater presence on all 3rd party digital and TV platforms • launch of Saregama branded physical products with embedded music • Buil
Slide 4: Content IP Value Pyramid
Content IP Value Pyramid Music Films TV Serials News Saregama focus : Top 2 Higher Value segments
Slide 5: An Year when IP Value finally started getting Unlocked
An Year when IP Value finally started getting Unlocked % Growth Rs. Lacs FY 17-18 FY 16-17 YOY REVENUES Music 29268 14124 107% TV & Films 5293 6692 -21% Total 34561 20816 66% EBIDTA w/o SAR provision 5608 2626 114% PBT w/o SAR provision 4892 1987 146% PBT post SAR provision 4112 1730 138% PAT 3051 1
Slide 6: Q4 17-18 Financial Performance
Q4 17-18 Financial Performance % Growth Rs. Lacs Q4 17-18 Q4 16-17 Q1 17-18 Q2 17-18 Q3 17-18 YOY REVENUES Music 9163 3948 132% 4551 7320 8234 TV & Films 1374 1822 -25% 1653 1126 1140 Total 10537 5770 83% 6204 8446 9374 EBIDTA w/o SAR 1978 1112 78% 934 1315 1381 provision PBT w/oSAR: SAR Stock Appre
Slide 7: And we have just scratched the surface of the Real IP Value
And we have just scratched the surface of the Real IP Value Year Highlights • Carvaan has taken the market by storm. ~400k units sold even before conventional advertising started. 10k retail distribution network in 10 months • Streaming business growing ~40% YOY, on the back of growing smartphones (
Slide 8: And we have just scratched the surface of the Real IP Value
And we have just scratched the surface of the Real IP Value Feb’18: 3.1B times a Saregama music IP was consumed by someone in some part of the world in 28 days This number is steadily growing Each usage is monetisable…either through advertising or licensing or subscription And we know which song got
Slide 9: Growth from 3rd party digital / TV platforms continues
Growth from 3rd party digital / TV platforms continues OTT Streams (mn) per Quarter YT Views(mn) per Month 186 724 44% 670 111% 567 135 503 487 121 435 88 89 337 67 50 37 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Jun'16 Sep'16 Dec'16 Mar'17 Jun'17 Sep'17 Dec'17 Mar'18
Slide 10: 146k units sold of Carvaan & Mini in Q4'18
CARVAAN • 146k units sold of Carvaan & Mini in Q4’18 • Carvaan Bengali launched in Feb 18 • Carvaan launched in UK. Price: £120 • Delivery from India based manufacturer on track. Supply from May’18 • On track for a 2018 model launch during festival season Q4 17-18 Q3 17-18 Q2 17-18 Q1 17-18 Sale 146
Slide 11: How Big can Carvaan Become
How Big can Carvaan Become Market Sizing Criteria : • Can Afford (basis SEC) • Will like to Buy (someone in home above age of 40) • Product Relevant (Saregama catalogue strength in that langauge) Price: Rs7k-8k : 25M Homes Research confirms that 40+ people • prefer listening to retro music • Want a
Slide 12: Building IP
Building IP New MUSIC ‘AGAINST THE SYSTEM. FOR THE NATION! SWISS ENTERTAINMENT HASEENA PARKAR MAAVEEPRAN KITTU TUBEUIGHT
Slide 13: Building IP Films
Building IP Films • Data explosion resulting in growing demand for ‘exclusive’ content from all OTT players • 8 films ready. All shot in 18-21 days each and TV channels • First film “Ajji” release in Nov 17 • Thematic films with tightly controlled • Digital rights licensing for Ajji and budgets; tar
Slide 14: Yoodlee Films
Yoodlee Films Movies released / deals closed Releases in coming quarter
Slide 15: Yoodlee Films – Accolades & Reviews
Yoodlee Films – Accolades & Reviews AJJI has travelled to over 20 Festivals One of India's strongest independents of the year - Hollywood Reporter Must watch indie film of the year – Screen Anarchy Ajji is a flesh-and-blood product of 'realism' films – Film Companion Cinema cannot get any more basic
Slide 16: Publication Biz - Open Magazine
Publication Biz - Open Magazine • Publication Biz in 100% subsidiary • Sustained Circulation and Ad Revenues • Association of premium brands • No unprovided drag on financial results of parent - Saregama
Slide 17: Outlook - Music Business
Outlook - Music Business Music B2B • OTT & YouTube will continue double digit growth while Telecom will continue to decline • Consolidation may happen across OTT buyers, but the total streams will continue growing • Acquisition of new music content will start helping publishing business to grow furt
Slide 18: Outlook - TV, Films & Publication Businesses
Outlook - TV , Films & Publication Businesses Television Business • South TV – Banked inventory will start getting contributing to Profits from Q1, FY 18- 19 Films ( Yoodlee ) • Greater focus on U/A and U films • Some films will be released in theatre, while some will go straight to digital platform
Slide 19: Thank You
Thank You