Jagran Prakashan Limited · NSE:JAGRAN
Jagran Prakashan — Q1 FY2018 Earnings Presentation
46 slides from Jagran Prakashan's earnings presentation, Aug 8, 2017
Slide 1: Intimation to Stock Exchange - Investor Presentation
fae SPR l i THE WORLD/S LARGEST READ DAILY jag fa n August 8, 2017 1) Manager—CRD, Fax No.022-22722037/39/41 BSE Ltd., Re: Jagran Prakashan Limited Phiroz Jeejeebhoy Towers, Scrip Code: 532705 Dalal Street, ISIN No. INE 199G01027 Mumbai-400001 2) Listing Manager, Fax: 022- 26598237/38 National Stock
Slide 2: Jagran Prakashan Limited Q1FY18 Result Presentation August 2017
Jagran Prakashan Limited Q1FY17 August Result 2017 Presentation 1
Slide 3: 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 4: Q1 FY18 Quarterly Performance
Q1 FY18 Quarterly Performance
Slide 5: Consolidated Performance
Consolidated Performance THE COMPANY HAS RECEIVED 94 AWARDS DURING THE QUARTER Advertising Revenue Operating Revenue Operating Profits Profit Before Tax 29% 25% 439 591 20% 13% 418 564 156 161 133 475 125 339 117 134 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY16 Q1
Slide 6: Print Business - Stable Growth Continues
Print Business –Stable Growth Continues Advertising Revenue Operating Revenue Operating Profits Profit Before Tax 13% 12% 363 485 8% 13% 349 468 321 433 137 140 124 119 130 110 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY16 Q1 FY17 Q1 FY18 Rs in Cr 5
Slide 7: ...with Consistent Performance
…with Consistent Performance DAINIK JAGRAN : STABLE PERFORMANCE OTHER PUBLICATIONS : IMPROVING TREND Operating Operating Profit Operating Operating Profit Revenue Profits Before Tax Revenue Profits Before Tax 11% 8% 10% 14% 10% 121% 384 396 129 131 115 118 89 9 6 122 107 84 8 8 356 78 4 3 Q1 Q1 Q1 Q
Slide 8: Mid Day gained Display Volume Market Share
Mid Day gained Display Volume Market Share ENGLISH MID DAY AND GUJRATI MID DAY INCREASED VOLUME MARKET SHARE BY 300 bps (yoy) to 17% and 38% RESPECTIVELY Operating Revenue Operating Profit Profit Before Tax 15% 11% 81% 31 6 5 29 6 27 6 4 3 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY16 Q1 F
Slide 9: Mid-day Financial Performance
Mid-day Financial Performance Particulars (Rs. in Crs) Q1 FY18 Q4 FY17 Q1 FY17 Operating Revenue 30.7 31.9 28.9 Advertisement 23.2 24.4 21.5 Circulation 6.8 6.9 6.7 Other Operating Income 0.7 0.7 0.7 Expenses 24.5 24.9 22.9 Operating Profit 6.2 7.0 6.0 Operating Profit Margin 20.2% 22.0% 20.8% Other
Slide 10: MBL maintains EBITDA Margins over 30%
MBL maintains EBITDA Margins over 30% PROFITABLE GROWTH WITH LOWEST COST PER MILLION LISTNERSHIP Operating Revenue Operating Profit Profit Before Tax 48% 53% 70 22 17 63 19 12 47 15 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY16 Q1 FY17 Q1 FY18 -2 Q1 FY16 Q1 FY17 Q1 FY18 Rs in Cr 9 PBT of Q1FY16 includes Exception
Slide 11: MBL Financial Performance
MBL Financial Performance Particulars (Rs. in Crs) Q1 FY18 Q4 FY17 Q1 FY17 Operating Revenue 70.3 66.6 62.8 Expenses 48.1 50.0 43.7 Operating Profit 22.2 16.6 19.2 Operating Profit Margin 31.5% 24.9% 30.5% Other Income 4.7 1.7 1.1 Depreciation 6.4 5.6 4.5 Interest 3.9 5.9 4.1 Profit Before Tax 16.6
Slide 12: Operating Margin Break-up
Operating Margin Break-up Particulars (Rs. in Crs) Q1 FY18 Q1 FY17 Dainik Jagran* Operating Revenue 395.6 383.7 Operating Profit 131.3 128.7 Operating Margin 33.2% 33.6% Other Publications* Operating Revenue 88.4 83.6 Operating Profit 9.3 8.2 Operating Margin 10.5% 9.8% Digital Operating Revenue 7.7
Slide 13: Consolidated Profitability Statement - Quarterly
Consolidated Profitability Statement - Quarterly Rs In Cr Q1 FY18 Q1 FY17 YoY Q4 FY17 QoQ FY17 Revenues 591.3 564.4 5% 562.0 5% 2,283.0 Advertisement Revenue * 439.2 417.7 5% 409.4 7% 1,686.6 Circulation Revenue 108.6 107.0 1% 110.2 -1% 432.5 Others 43.5 39.7 10% 42.5 2% 163.8 Raw Material 169.8 169
Slide 14: Group Introduction
Section 1 Group Introduction
Slide 15: Jagran Today
Jagran Today ~Rs.5500 Cr ~Rs.2000 Cr MARKET CAP MARKET CAP Print Digital Radio Jagran Prakashan Limited holds 70.58% of Music Broadcast Limited Activation OOH (RadioCity) 14
Slide 16: Multi Media Conglomerate - Width, Depth and Heritage
Multi Media Conglomerate – Width, Depth and Heritage Two #1* Print India’s Largest* 68+ mn* Dailies, Dainik Jagran Readers (Hindi) and Inquilab read daily- Dainik (Urdu) Jagran 9 Print Publications and 1 9 Digital Media Magazine Portals 5 Business Verticals Jagranjosh.com is Trusted by millions #1 P
Slide 17: Brand Strength - Stability, Consistency and Trust
Brand Strength – Stability, Consistency and Trust PRINT BUSINESS DIGITAL BUSINESS RADIO BUSINESS 16
Slide 18: Geographical Reach - From Jammu to Tamil Nadu
Geographical Reach – From Jammu to Tamil Nadu Jalandhar Hissar Patiala Karnal Enhancing Pan Bikaner Delhi Bareilly India Presence Agra Jaipur Lucknow Gorakhpur Ajmer Gwalior Kanpur Print Presence : Patna Udaipur Varanasi Kota Ranchi 13 State Ahmedabad Kolkata Baroda Jamshedpur Jalgaon Surat Akola Na
Slide 19: High Growth Strategies
Section 2 High Growth Strategies
Slide 20: Value Creation and Growth led by Acquisitions
Value Creation and Growth led by Acquisitions ADVERTISEMENT REVENUE* Increased Advertisement Revenue Rs In Cr ▪ 38% increase in Advertisement Revenue +38% ▪ Strengthened Relationships with Clients with wider 1,664 offerings 271 Expansion in various Indian Languages ▪ Expansion in Language Offerings
Slide 21: Aggression with focus on Revenue & Synergy
Aggression with focus on Revenue & Synergy 01 02 03 ▪ Acquired in 2010 : Total ▪ Acquired in 2012 : Total ▪ Acquired in 2015 : Total Revenue Rs 96 Cr Revenue Rs 110 Cr Revenue Rs 201 Cr ▪ Revenue for March 2017 ▪ Revenue for March 2017 ▪ Revenue for March 2017 Rs. 119 Crs Rs. 146 Crs Rs. 271 Crs ▪ T
Slide 22: Mid-Day - Strong Brands with unique Market Position
Mid-Day – Strong Brands with unique Market Position Synergies of the Acquisition Acquisition : Share Swap Deal OPERATING PROFIT ▪ Access to Mid Day Audience ▪ Acquired in 2010 Rs In Cr 22 ▪ Synergies – Extension of Presence with ▪ Mid-Day Multimedia's (MML) Inquilab to North along with Ad. sharehold
Slide 23: Nai Dunia - MPCG Key States of Hindi Heartland
Nai Dunia - MPCG Key States of Hindi Heartland Net Acquisition Price – Rs 105 Crs OPERATING PROFIT ▪ Acquired in 2012 Rs In Cr Core Assets ▪ 6 Operational Printing Facilities, Strong Brand 04 ▪ Acquisition Cost Rs 225 Cr 0 ▪ Rs 120 Cr recovered from Tax benefits and Trained Manpower and selling of i
Slide 24: Radio - Complements Print, OOH, Events and Digital
Radio - Complements Print, OOH, Events and Digital Over 15 Years of Experience in the Radio Industry 1st Private FM Radio Broadcaster in India 39 Stations^ Presence in Over 52.5 mn 12 out of top Listeners in 23 RADIO INDUSTRY MBL REVNUE 15 cities cities Rs In bn Rs In Cr CAGR 16% +20% 1st in Web 48
Slide 25: Opportunity to deploy Capital to improve ROC and EPS
Opportunity to deploy Capital to improve ROC and EPS OPERATING PROFIT Increased business diversity, across geographies and across media vehicles Rs In Cr 91 Radio business will complement JPL’s print, outdoor, activation and digital businesses and enable deeper 78 inroads with advertisers both at na
Slide 26: Radio Value Unlocking through Listing
Radio Value Unlocking through Listing December 2014 March 2017 TEXT HERE ▪ Acquisition of Music Broadcast ▪ Listing of Music Broadcast Limited Limited Download this awesome diagram. Pitch your ideas convincingly. Capture your audience’s ▪ attention. IPO subscribed: 40Xto life. Download your presenta
Slide 27: Leadership - Print, Radio & Digital
Section 3 Leadership – Print, Radio & Digital
Slide 28: Largest Read Print Group of India
Largest Read Print Group of India Jammu & Kashmir Dainik Jagran is Himachal India’s #1 Daily* 68mn* 13 Punjab Pradesh Readers States Haryana Uttarakhand Delhi Uttar Pradesh Bihar 9 Publications and 5 Madhya Pradesh Jharkhand West Bengal 1 Magazine Languages Chhattisgarh Mumbai 400+ 53mn+ Inquilab is
Slide 29: 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 # 1 with 11.7 mn readers in NCCS A Most credible and trusted newspaper with Strong Leadership in Uttar Pradesh in India* Source:
Slide 30: Consistently maintaining Leadership over a decade
Consistently maintaining Leadership over a decade JPL Commands Leadership JPL Hindi Publication Readership Position in India* - By States* 18% JPL Hindi Publications 62 mn readers 5% 51% 11% 7% Peer 1 2% 39 mn readers 3% 3% UP Bihar Jharkhand MP & CG Peer 2 Haryana & Punjab Uttarakhand Delhi Others
Slide 31: Dainik Jagran constantly Improving Yields
Dainik Jagran constantly Improving Yields 1144 1087 1007 939 841 806 724 90% 603 23 23 Advertising Revenue 22 21 Growth 2010 to 2017 2017 21 2016 21 2015 21 2014 2013 20 Average No. of pages per copy 2012 2011 Advertising Revenue (Rs. crs) 2010 Effective utilization of available advertisement invent
Slide 32: Print - Delivering Operational Excellence
Print - Delivering Operational Excellence Operating Profits (Rs In Cr) Dainik Jagran Mid Day Nai Dunia Other Publications 24 4 8 505 529 22 462 0 4 13 -11 -2 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17* FY15 FY16 FY17 Dainik Jagran – Our Flagship Brand continues to generate over 33% Margins *Note :
Slide 33: Radio - High Growth High Margin Business Proposition
Radio - High Growth High Margin Business Proposition Industry Growth Strong Parentage High Entry Barriers Radio Industry is estimated to JPL Group Relationships, Radio Industry is protected by grow at a CAGR 16% over the Experienced Team, Knowledge of Licenses for 15 Years thereby next 5 Years Local
Slide 34: Digital Business - Investing to Build leadership
Digital Business – Investing to Build leadership Our Digital Media Portfolio Indian website in overall Healthcare Industry Education portal • For the quarter ended June “Jagranjosh.com” 2017 growth in Digital #1 on Mobile with Topline mn unique 8.89 mn unique visitors users ✓ 18.1% Growth at 33.4 #1
Slide 35: Financial Performance
Section 4 Financial Performance
Slide 36: Print Business Performance Highlights
Print Business Performance Highlights Advertising Revenue 9% 4% 3% 4% 5% 350 323 338 358 369 321 336 1,324 1,392 321 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Q3 FY16 Q3 FY17 Q4 FY16 Q4 FY17 FY16 FY17 Operating Revenue 8% 5% 4% 4% 5% 468 436 456 472 491 440 458 1,782 1,874 433 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17
Slide 37: Print Business Performance Highlights
Print Business Performance Highlights Operating Profit & Margins 29.9% 29.2% 30.7% 28.1% 31.4% 33.3% 28.5% 28.6% 30.2% 29.8% 5% -4% 10% 4% 4% 130 137 134 128 163 125 131 537 559 148 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Q3 FY16 Q3 FY17 Q4 FY16 Q4 FY17 FY16 FY17 Profit Before Tax & Margins 24.3% 25.2% 24.9
Slide 38: Dainik Jagran - Solid Performance and Great Leadership
Dainik Jagran – Solid Performance and Great Leadership Operating Revenue 8% 5% 4% 4% 5% 384 357 374 386 400 360 374 1,459 1,531 356 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Q3 FY16 Q3 FY17 Q4 FY16 Q4 FY17 FY16 FY17 Operating Profit and Margins 34.2% 33.5% 35.1% 33.8% 35.9% 37.9% 33.3% 32.9% 34.6% 34.6% +6% 1
Slide 39: Other Publications - Impressive Turnaround
Other Publications – Impressive Turnaround Operating Revenue 9% 5% 5% 6% 6% 84 79 83 86 91 80 85 323 342 78 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Q3 FY16 Q3 FY17 Q4 FY16 Q4 FY17 FY16 FY17 Operating Profit and Margins 10.2% 9.4% 10.7% 2.0% 11.6% 13.0% 7.1% 9.6% 9.9% 8.6% 0% 19% 43% -80% -8% 8 8 8 12 8 32 3
Slide 40: Robust Radio Performance
Robust Radio Performance OPERATING REVENUE OPERATING PROFIT PAT +20% +17% +32% 271 91 37 225 78 28 FY16 FY17 FY16 FY17 FY16 FY17 Financials are as per IndAS 39 PAT of FY16 includes Exceptional Expenses of Rs. 13.58 Crs
Slide 41: Consolidated Performance
Consolidated Performance Advertising Revenue 21% 10% 5% 5% 10% 411 419 424 447 389 409 1,687 382 1,534 339 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Q3 FY16 Q3 FY17 Q4 FY16 Q4 FY17 FY16 FY17 Operating Revenue 17% 10% 6% 7% 10% 558 562 565 601 562 2,283 512 527 2,079 475 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Q3 FY16
Slide 42: Consolidated Performance
Consolidated Performance Operating Profit & Margins 28.2% 27.7% 28.5% 27.2% 30.3% 31.2% 26.4% 25.7% 28.4% 28.0% 15% 5% 10% 4% 8% 155 146 153 188 139 144 640 134 171 590 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Q3 FY16 Q3 FY17 Q4 FY16 Q4 FY17 FY16 FY17 Profit Before Tax & Margins 24.7% 23.5% 21.2% 21.1% 22.8%
Slide 43: Consolidated Profitability Statement
Consolidated Profitability Statement Rs In Cr FY17 FY16 YoY Revenues 2283.0 2079.2 10% Advertisement Revenue 1686.6 1533.8 10% Circulation Revenue 432.5 408.5 6% Others 163.8 136.9 20% Raw Material 652.5 628.7 Manpower Cost 374.0 322.7 Other Operating Expenses 617.0 537.4 Operating Profit 639.6 590.
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (Rs. In Cr) Mar-17 Mar-16 EQUITY AND LIABILITIES (Rs. In Cr) Mar-17 Mar-16 Non-Current Assets 2,154.2 1,692.0 Equity and Liabilities 2,391.2 1,664.4 Property, plant and equipment incl. CWIP 656.1 633.7 Goodwill 337.7 337.7 Equity share capital 65.4 65.4 Other intang
Slide 45: Reaching a New Scale
Reaching a New Scale THE JAGRAN WE HAVE BUILT THE JAGRAN YOU KNOW Largest Print player Building sustainable Multi media and robust businesses in Conglomerate Heritage each vertical Profitable Respect and credibility Country-wide Presence Value Maximizing Aggressive 44
Slide 46: Contact Us
Contact Us Jagran Prakashan Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L22219UP1975PLC004147 CIN: U74140MH2010PTC204285 Mr. Amit Jaiswal Ms. Payal Dave amitjaiswal@jagran.com Contact: +91 9819916314, Email: payal.dave@sgapl.net Ms. Payal Sheth Contact: +91 9820452239, Email: payal.sheth@sgapl.net