Saregama India Limited · NSE:SAREGAMA
Saregama India — Q4 FY2019 Earnings Presentation
66 slides from Saregama India's earnings presentation, May 8, 2019
Slide 1: Cover letter to stock exchanges: Earnings and Corporate Presentation
- AO 164. RP Sanjiv Goenka - ir Group Growing Legacies May 8, 2019 The Manager, The Listing Department The Calcutta Stock Listing Department, BSE Limited, Exchange Limited, National Stock Exchange of Phiroze Jeejeebhoy 7, Lyons Range, India Ltd., Towers, KOLKATA - 700 001 'Exchange Plaza', C-1, Dala
Slide 2: Q4 / FY19 Earnings Presentation
SAREGAMA INDIA LIMITED Q4 / FY19 EARNINGS PRESENTATION
Slide 3: Slide 3
Slide 4: Snapshot
Snapshot India’s oldest music label and High Dividend Yield and a Zero Strong and professional youngest film production house Debt Company management team with experienced stalwarts from the entertainment industry Owning Intellectual Property (IP) India’s first song was recorded in Digital licensing
Slide 5: Company Overview
Company Overview • Saregama India Ltd., an RP Sanjiv Goenka Group Company, is India's oldest music label, youngest Consolidated Revenues from film studio and a multi-language TV content producer. Over the years, the Company has Operations expanded its business from audio to home video, publishing, d
Slide 6: Strategic Overview
Strategic Overview Rising Smartphone Falling Rising Individual Ownership Data Prices Falling Piracy based Content 450-500M >Rs3/GB Consumption Content Consumption thru Legal means Going Up • Indians spent 30% of their phone time on entertainment • 325M people viewed video online in 2018 growing @25%
Slide 7: Strategic Overview
Strategic Overview Saregama’s longlong Saregama’s term strategy term isistotobe strategy beaapure playcontent pure play contentcompany company capitalising capitalising ondata on the the boom globalglobally data boom Highermonetisation Diversified monetisation ofofExisting IP IP Existing to to fund
Slide 8: Business Verticals
Business Verticals Saregama is the pioneer of the Indian music industry and has evolved into a premier diversified content player with Intellectual property rights of songs, TV serials, movies having presence across platforms like television, radio, digital, telecom, etc. Business Verticals Music Se
Slide 9: Financial Highlights
Financial Highlights
Slide 10: Last 3 years Track Record
Last 3 years Track Record Total Revenue (INR Mn) PAT (INR Mn)and PAT Margin (%) ROCE* (%) 9% 6,011 8% 22.2% 543 3,668 283 14.3% 4% 2,318 87 5.1% FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 *Capital Employed = share capita. security premium & free reserves Total Revenue grown by 160% PAT grown by 52
Slide 11: Financial Summary – Consolidated
Financial Summary – Consolidated Particulars (INR Mn) FY 18-19 FY 17-18 Y-o-Y Growth FY 16-17 Revenues from Operations • Music 4897 2968 65% 1442 • TV & Films 476 529 -10% 669 • Publication 74 68 8% 74 Revenue from Operations Total 5447 3566 53% 2185 PBT without SAR Provision 850 467 82% 185 PBT aft
Slide 12: Financial Performance – Consolidated
Financial Performance – Consolidated Particulars (INR Mn) FY19 FY18 Y-o-Y Growth Revenue from Operations 5,447 3,556 53% Other Income# 564 102 454% Total Revenue 6,011 3,668 64% Total Expenses 5,062 3,125 62% EBITDA* 949 543 75% EBITDA Margin (%) 16% 15% 7% Depreciation 33 42 -21% Finance Cost 66 34
Slide 13: Balance Sheet – Consolidated
Balance Sheet – Consolidated Equity and Liabilities (INR Mn) FY19 FY18 Assets (INR Mn) FY19 FY18 Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 174 174 (a) Property, Plant and Equipment 2057 1,884 (b) Other Equity 4107 3,643 (b) Investment Properties 24 24 Net worth 4,281 3,817
Slide 14: Financial Summary – Standalone Quarterly
Financial Summary – Standalone Quarterly Particulars (INR Mn) Q4-FY19 Q3-FY19 Q-o-Q Growth Q4-FY18 Y-o-Y Growth Revenues from Operations • Music 1121 1385 -19% 916 22% • TV & Films 119 121 -2% 137 -13% Revenue from Operations Total 1240 1506 -18% 1053 18% PBT without SAR Provision 262 215 22% 178 47
Slide 15: Financial Performance – Standalone Quarterly
Financial Performance- Standalone Quarterly Particulars (INR Mn) Q4-FY19 Q3-FY19 Q-o-Q Growth Q4-FY18 Y-o-Y Growth Revenue from Operations 1240 1,506 -18% 1,054 18% Other Income 119 23 417% 74 61% Total Revenue 1359 1,529 -11% 1,128 20% Total Expenses 1074 1,290 -17% 930 15% EBITDA* 285 239 19% 198
Slide 16: Financial Performance – Standalone Yearly
Financial Performance – Standalone Yearly Particulars (INR Mn) FY19 FY18 Y-o-Y Growth Revenue from Operations 5244 3456 52% Other Income# 595 142 319% Total Revenue 5839 3598 62% Total Expenses 4917 3037 62% EBITDA* 922 561 64% EBITDA Margin (%) 16% 16% Depreciation 30 38 -21% Finance Cost 66 34 94%
Slide 17: Standalone Balance Sheet
Standalone Balance Sheet Equity and Liabilities Assets (INR Mn) FY19 FY18 FY19 FY18 (INR Mn) Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 174 174 2056 1,881 (b) Other Equity 4087 3,647 (a) Property, Plant and Equipment (b) Investment Properties 24 24 Net worth 4261 3,821 (c) I
Slide 18: FY19 Operational Highlights
FY19 Operational Highlights
Slide 19: Music Segment Operational Highlights
Music Segment Operational Highlights Q4-FY19 Operational Highlights: Carvaan Sales (units ‘000s) 2.9K new billing dealers added in Q4 total 22.5K dealers Gross margin improved to 132 146 164 229 297 214 25% from 22% in Q4 of last year. Q3-FY18 Q4-FY18 Q1-FY19 Q2-FY19 Q3-FY19 Q4-FY19 Festival sales C
Slide 20: Music Segment Operational Highlights
Music Segment Operational Highlights Hindi Regional OTT Streams (Mn) per Quarter 670 724 872 1003 1045 1228 Q3-FY18 Q4-FY18 Q1-FY19 Q2-FY19 Q3-FY19 Q4-FY19 YouTube Views (Mn) per Quarter 365 496 594 914 784 1109 Q3-FY18 Q4-FY18 Q1-FY19 Q2-FY19 Q3-FY19 Q4-FY19 Saregama invested Rs.56Mn in FY18 and Rs
Slide 21: Films & TV Segment Operational Highlights
Films & TV Segment Operational Highlights Q4-FY19 Operational Highlights: Films (Yoodlee) Television Business • Only studio in India to give • Serial Roja (2 Year old) 3 Netflix Original. moved to evening Prime Hamid: Time slot from noon • The film was featured in 13 • IP of Tamil TV Serial Roja is
Slide 22: Financial Charts (Consolidated)
Financial Charts (Consolidated) Total Revenue (INR Mn) EBITDA and EBITDA Margin (%) PAT and PAT Margin (%) 16% 9% 8% 15% 11% 4% 2,318 3,668 6011 254 543 949 87 283 543 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 EBITDA EBITDA Margin (%) PAT PAT Margin (%) Diluted EPS PE Ratio ROCE* 22.2% 14.3% 5.0
Slide 23: Disclaimer
Disclaimer Saregama India Ltd. Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in al
Slide 24: Thank you
Jsare ga map soul of India Thank you
Slide 25: Saregama India Limited
SAREGAMA INDIA LIMITED CORPORATE PRESENTATION | MAY 2019
Slide 26: Snapshot
Snapshot India’s oldest music label and High Dividend Yield and a Zero Strong and professional youngest film production house Debt Company management team with experienced stalwarts from the entertainment industry Owning Intellectual Property (IP) India’s first song was recorded in Digital licensing
Slide 27: Strategic Overview
Strategic Overview Rising Smartphone Falling Rising Individual Ownership Data Prices Falling Piracy based Content 450-500M >Rs3/GB Consumption Content Consumption thru Legal means Going Up • Indians spent 30% of their phone time on entertainment • 325M people viewed video online in 2018 growing @25%
Slide 28: Strategic Overview
Strategic Overview Saregama’s Saregama’s long term strategy : Tostrategy long term be a Pure is toPlay be aContent Company pure play content capitalising on the global company capitalising data on the driven data boomentertainment globally boom Diversified monetisation Higher monetisation of Existin
Slide 29: Last 3 years Track Record
Last 3 years Track Record Total Revenue (INR Mn) PAT (INR Mn)and PAT Margin (%) ROCE* (%) 9% 6,011 8% 22.2% 543 3,668 283 14.3% 4% 2,318 87 5.1% FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 *Capital Employed = share capita. security premium & free reserves Total Revenue grown by 160% PAT grown by 52
Slide 30: Company Overview
COMPANY OVERVIEW
Slide 31: Company Overview
Company Overview • Saregama India Ltd., an RP Sanjiv Goenka Group Company, is India's oldest music label, youngest Consolidated Revenues film studio and a multi-language TV content producer. Over the years, the Company has (In INR Mn) expanded its business from audio to home video, publishing, digit
Slide 32: The Saregama Heritage
The Saregama Heritage • Saregama, the erstwhile HMV India, has been in the entertainment • In 1946, it was incorporated as a Private Limited company with the name business for 114 years and was initially established as a branch of of ‘The Gramophone Co. (India) Limited’ Electrical & Musical Industri
Slide 33: Management Team
Management Team Board of Directors Sanjiv Goenka Preeti Goenka Arindam Sarkar Umang Kanoria Santanu Bhattacharya Noshir Naval Framjee Avarna Jain Non-Executive and Non-Executive and Non-Executive and Non-Executive Group Chairman Non-Executive Director Independent Director Independent Director Indepe
Slide 34: Awards & Accolades
Awards & Accolades Ajji WAARC Innovation Awards Inovation Awards 2019 Special Award for Category The Economic Times Innovation and Silver for Effective Innovation Hamid Brand Equity Marketing Awards 2018 IndIAA Awards 2018 ‘Innovation of the Year’ The Perfect Gift Award Apac Effies One Gold and Two
Slide 35: Financial Summary – Consolidated
Financial Summary – Consolidated Particulars (INR Mn) FY 18-19 FY 17-18 Y-o-Y Growth FY 16-17 Revenues from Operations • Music 4897 2968 65% 1442 • TV & Films 476 529 -10% 669 • Publication 74 68 8% 74 Revenue from Operations Total 5447 3566 53% 2185 PBT without SAR Provision 850 467 82% 185 PBT aft
Slide 36: Business Overview
| eee [a] Fel BUSINESS OVERVIEW
Slide 37: Business Verticals
Business Verticals Saregama is the pioneer of the Indian music industry and has evolved into a premier diversified content player with Intellectual property rights of songs, TV serials, movies having presence across platforms like television, radio, digital, telecom, etc. Business Verticals Music Se
Slide 38: Music Segment
MUSIC SEGMENT
Slide 39: Music Industry
Music Industry • Indian Music industry was estimated at INR 14.4 Bn in FY18, having grown at a Indian Music Industry size CAGR of 14.3% between FY14 and FY18 (KPMG) (INR Bn) • The growth in India has come on the back of digital consumption led by smartphone popularity. Contrary to the popular belief
Slide 40: Piracy
Piracy • Piracy continues to be one of the major issues affecting the Indian film & Music industry with annual loss of revenues to around INR 180 Bn. • Pirated content continues to be the most popular source of music. Indians visited websites providing unlicensed music 9 Bn times in 2017, according
Slide 41: Saregama Music IP
Saregama Music IP • Saregama is the oldest music label in India, with the largest library of songs under its bouquet. A typical movie Music Revenue (INR Mn) has 5 songs. Assuming a music label acquires 1000 movies in an year, it will get 5,000 songs. By comparison Saregama owns 120,000 songs, each d
Slide 42: Film Music IP…best of 20th Century
Film Music IP…best of 20th Century Iconic Late 90s & Early 200s Iconic 90s Iconic 80s Iconic 70s Iconic 60s Iconic 50s 18
Slide 43: Biggest IP collection – Films, Classical & Devotional
Biggest IP collection – Films, Classical & Devotional S.P. Balasubrahmanyam Mukesh 3,136 TRACKS 1,659 TRACKS Asha Bhonsle Jagjit Singh 6,851 508 TRACKS TRACKS Mohd. Rafi Lata Mangeshkar 5,061 TRACKS Kishore Kumar Ameen Sayani 5,676 TRACKS 2,798 TRACKS 694 TRACKS And many more… 4,400+ 150+ 1,800 trac
Slide 44: Diversified Music Monetising Platforms
Diversified Music Monetising Platforms Saregama’s Music Intellectual Property PHYSICAL (handled directly by Company) Digital Publishing Societies DIGITAL • TV Channels PPL : Public Performance of Sound (handled through 3rd • OTT • Radio recordings party licensing) • YouTube • Brand Advertisements •
Slide 45: Music IP Monetisation - Carvaan
Music IP Monetisation - Carvaan • The Company launched a breakthrough product called ‘Carvaan’, which Units Sold (‘000s) 297 is a portable digital music player with inbuilt stereo speakers and preloaded music. 146 214 • Carvaan has multiple variants across languages (Hindi, Tamil, Bengali, 132 146 M
Slide 46: Variants of Carvaan
Variants of Carvaan • Songs in Carvaan have been selected through data analytics and and classified based on singers, lyricists, music composers, actors, moods etc. • With a simple turn of the knob, one can switch between Kishore Kumar classics, to R.D Burman’s pulsating hits, to timeless love songs
Slide 47: Music IP Monetisation: Digital Licensing
Music IP Monetisation: Digital Licensing The company’s evergreen catalogue remains the preferred choice for digital Number of OTT Streams (Mn) platforms, brand advertisements and general entertainment TV channels. 1228 1003 1045 OTT 872 • Saregama licenses its music to various OTT platforms for onli
Slide 48: Music IP Creation: Process
Music IP Creation: Process • The Music IP will be built through new film music acquisition across Hindi, Tamil and Marathi with a clear strategy to start slowly, vet assumptions and start building up the slate over time • The company is additionally creating fresh content for classical and devotiona
Slide 49: Music IP Creation: Last 18 months
Music IP Creation: Last 18 months 25
Slide 50: TV & Films Segment
TV & FILMS SEGMENT
Slide 51: Film Industry
Film Industry Online Video Audience in India will double by 2020 (Mn) • The films business has witnessed growth courtesy expansion of overseas markets, increase in regional content and a rise in acquisitions of the digital content by Over The Top (OTT) platforms. • The global OTT players are making
Slide 52: Video IP Creation & Monetisation: Yoodlee Films
Video IP Creation & Monetisation: Yoodlee Films • Yoodlee Films is Saregama’s production house with a focus on thematic films in all languages, with controlled budgets and a Straight to Digital nucleus on an audience segment of 18 to 35 years. • Yoodlee films, as a brand, will be seen as a serious p
Slide 53: Video IP Creation & Monetisation: TV Serials
Video IP Creation & Monetisation: TV Serials Saregama continues its leadership in Tamil (Sun Network) in the after noon prime time with highest TRP. The revenue stream is through Sun TV is planning to launch a second • Saregama is the leading TV content advertising slot sales. The Company GEC Channe
Slide 54: Publications
PUBLICATIONS
Slide 55: Publications Segment
Publications Segment • The Publications segment includes the publication of Open Magazine, a weekly current affairs and features magazine through a 100% owned subsidiary. • Open Magazine was launched on 2nd April 2009, and was originally available in 12 Indian cities. • Written and edited for the so
Slide 56: Future Outlook
FUTURE OUTLOOK
Slide 57: Outlook
OUTLOOK Music Saregama’s overall B2B revenues will grow at 25% Music The potential market sizing over next few years Digital yoy. This will be driven by growth in OTT platforms Physical (40%-42%) and Publishing(18-20%) is 25M; Estimated sales for next 3 yrs: 5M B2B B2C cumulative Acquisition of new
Slide 58: Financial Overview
FINANCIAL OVERVIEW
Slide 59: Standalone Income Statement
Standalone Income Statement Particulars (INR Mn) FY19 FY18 FY17 Revenue from Operations 5,244 3,456 2,081 Other Income 595 142 159 Total Revenue 5,839 3,598 2,240 Total Expenses 4,917 3,037 1,977 EBITDA* 922 561 263 EBITDA Margin (%) 16% 16% 13% Depreciation 30 38 41 Finance Cost 66 34 23 PBT withou
Slide 60: Standalone Balance Sheet
Standalone Balance Sheet Equity and Liabilities (INR Assets (INR Mn) FY19 FY18 FY17 FY19 FY18 FY17 Mn) Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 174 174 174 2056 1,881 1,893 (a) Property, Plant and Equipment (b) Other Equity 4087 3,647 3,236 (b) Investment Properties 24 24
Slide 61: Consolidated Income Statement
Consolidated Income Statement Particulars (INR Mn) FY19 FY18 FY17 Revenue from Operations 5447 3,566 2,185 Other Income # 564 102 133 Total Revenue 6,011 3,668 2,318 Total Expenses 5,062 3,125 2,064 EBITDA * 949 543 254 EBITDA Margin (%) 16% 15% 7% Depreciation 33 42 44 Finance Cost 66 34 24 PBT wit
Slide 62: Consolidated Balance Sheet
Consolidated Balance Sheet Equity and Liabilities (INR Mn) FY19 FY18 FY17 Assets (INR Mn) FY19 FY18 FY17 Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 174 174 174 (a) Property, Plant and Equipment 2057 1884 1897 (b) Other Equity 4107 3,643 3,223 (b) Investment Properties 24 24
Slide 63: Financial Charts (Consolidated)
Financial Charts (Consolidated) Total Revenue (INR Mn) EBITDA and EBITDA Margin (%) PAT and PAT Margin (%) 16% 9% 8% 15% 11% 4% 2,318 3,668 6011 254 543 949 87 283 543 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 EBITDA EBITDA Margin (%) PAT PAT Margin (%) Diluted EPS PE Ratio ROCE* 22.2% 14.3% 5.0
Slide 64: Capital Market Data
Capital Market Data 30% 20% 10% 0% -10% -20% -30% Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 -40% Saregama Sensex Shareholding Pattern as on 31st March, 2019 Price Data (As of 31st March, 2019) INR Face Value 10 Market Price 592.3 Others 38.12 52 Week H/L 871
Slide 65: Disclaimer
Disclaimer Saregama India Ltd. Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in al
Slide 66: Thank You
eA THANK YOU