Nation Media Group Limited · NSEKE:NMG
Nation Media — H1 2018 Earnings Presentation
42 slides from Nation Media's earnings presentation, Aug 17, 2018
Slide 1: Investor Briefing F18 HY Results
INVESTOR BRIEFING F18 HY RESULTS 17TH AUGUST 2018 @Nation Media Group @nationmediaGrp www.nationmedia.com
Slide 2: F18 H1 Highlights, Divisional and Group Results, Q&A
F18 2016 H1 Highlights HIGHLIGHTS HALF YEAR DIVISIONAL UPDATES RESULTS F18 H1 Divisional Results BRIEFING 2016F18 GROUP RESULTS H1 Group Results Q&A Q&A
Slide 3: Our Footprint
wt Nation Media Group Media of Africa for Africa OUR FOOTPRINT me Sew UGANDA RWANDA mE | os BUSINESS DAILY — EastAfrican == —_namton vt — NAIROBE LEADERSHIP ml ty pATLY#NATION KENYA Es e NV TANZANIA The wan 4 reste St M THecrrizen YH Pe The RWANDA TODAY EastAfrican [YSieterestee
Slide 4: Our Values
Our Values We are a team Continuous Consumer Focus Improvement & Innovation Integrity & Trust Drive for Performance 4 Inspiring leadership; Team work; Continuous improvement
Slide 5: Business Objective
Business Objective Protect & grow New revenue current business streams Consumer Living our values Innovation 5 Pursue value benefits anchored on driving growth through new revenue sources and innovation
Slide 6: We are clear on our journey
We are clear Pursue value benefits anchored on driving growth through new revenue on our journey sources and innovation Innovate to continuously meet consumer demands Develop new products to maintain competitive edge Growing the top line Grow current revenues Generating new revenue streams
Slide 7: Driving Return on Investment
Driving Return on Investment Reach Partnerships/ Innovations Power Brand Alliances Relevance Operational excellence 7 Impact
Slide 8: FY18 H1 Highlights
FY18 H1 HIGHLIGHTS DIVISIONAL RESULTS FY18 H1 GROUP RESULTS Q&A
Slide 9: 2018 Key Revenue Drivers
2018 Key Revenue Drivers Protect & grow current business New revenue streams Advertising Music Circulation Gaming Digital (SMS, E-paper, E-commerce) Events Contract printing Education 9
Slide 10: Digital
July 33.6 30 9.25 7.9 20.2k 16.9k 24.3 10 22.1
Slide 11: Digital Revenue Trend: 2013-2018
Digital Revenue Trend: 2013-2018 33.6 30 9.25 7.9 20.2k 16.9k 2013 2014 2015 24.3 2016 2017 2018 11 22.1
Slide 12: Record Label: Littogether
Record Label • Littogether Record Label Music is an exciting new record label that brings the most talented and diverse artists • A platform to recruit, nurture, develop, manage and promote music talent • Engaged a number of studios, production houses & other 3rd parties to provide the most comprehe
Slide 13: Music offering
Music offering Premiered May 3RD 2018 Every Thursday on NTV at 10pm Re-run on Sunday On Nation FM every Friday and Saturday at 7pm. Available on lit360.Africa Top trending show every Thursday 13
Slide 14: Way Forward
Way Forward TV Offering Merchandising Events and Event management Partnerships Music and video production Artists and repertoire 14 Online Distribution Channels
Slide 15: KenyaBuzz.com
Provider of the most comprehensive event and Ecommerce enabled experiential platform lifestyle information in Kenya. (Online & Print) for movies, events & retailers Audience growth: 87,000 in Jan 2017 to 155,000 in 2018 cinema presence on the ticketing platform Doubled circulation since its acquisit
Slide 16: Events
Events 33.6 30 9.25 7.9 Farm Clinic 20.2k 16.9k 16 myNetwork career fair 22.1 Nation Leadership Forum
Slide 17: Education
Education 33.6 30 9.25 7.9 20.2k 16.9k Printing of Books Newspapers in (Supplementary reading Education Programme JuniorSpot material) 17 Objective is to increase literacy in line with our mission
Slide 18: Other Growth Areas
Other Growth Areas Kenya Buzz Online Online TV Directory & Ticketing Online Lifestyle Platform 18 Focus on growing new revenue streams for sustainability
Slide 19: World Cup Coverage
World Cup Coverage FIFA World Cup Matches aired in 32 partnership with Kwesé Free Sports No. of viewers on NTV on the FIFA World Cup opening match Growth of NTV Viewership during the world cup period 19 NTV is currently positioned as No. 2 TV station
Slide 20: NTV Programming
NTV Programming 20 Strong news & entertainment content to drive growth of audiences
Slide 21: New Look NTV
New Look NTV ~ WITH NTV YOU AREFULLY COVERED a | of ee - Ss _ Nation Media Group
Slide 22: Government Debt
Government Debt 33.6 30 7.9 20.2k Outstanding GAA debt: Kshs 856 million; 85% overdue (Kshs 726m) 24.3 Discussions with government ongoing; credit suspended 22 Seeking alternative sources of revenue 22.1
Slide 23: NTV Closure
NTV Closure 30 7.9 20.2k 24.3 23 22.1 NTV Closure at the beginning of the year due to political unrest
Slide 24: Corporate Social Responsibility
Corporate Social Responsibility 30 9.25 7.9 Mercy Care Children’s Home Talitha Kum Children’s Home - Nyahururu , Laikipia County - Ndabibi, Naivasha County 20.2k 16.9k 24.3 22.1 Mama Fatuma Goodwill Children’ Shika Adabu Primary School Home - Nairobi County 24 - Likoni Sub-County
Slide 25: Excellence Awards
Excellence Awards Media Council of Kenya Annual Journalism Excellence Awards (Various categories) Energy Management Awards - Best New Entrant Award (Small and Medium Consumer) Communications Authority KUZA Awards - (3 Awards in various categories) Merck Foundation’s More East African Business than a
Slide 26: 2018 Group Highlights
2018 Group Highlights Growth of Kenya Buzz Convergence Growing the digital Strategic Roll out of optimisation opportunity partnerships JuniorSpot Lit 360 Music New NTV Debt mgt across NTV Closure MCL FIFA World Cup programming gov’t agencies shareholding 26
Slide 27: FY18 H1 Divisional Results
FY18 H1 HIGHLIGHTS FY18 H1 DIVISIONAL RESULTS FY18 H1 GROUP RESULTS Q&A
Slide 28: Print
Print DIVISION NND TEA BD MPL MCL REVENUE Revenues 9% 0% 33.6 0% 30 9.25 3% 12% 7.9 DIRECT COSTS 8% 42% 7% 7% 24% Direct Costs 20.2k 16.9k OPERATING RESULTS 13% >100% 10% 27% 48% 24.3 Operating Results 22.1 28
Slide 29: Television
Television 33.6 30 9.25 10% 7.9 1% Revenues 21% 20.2k 16.9k42% Direct Costs >100% 24.332% Operating Results 29
Slide 30: Digital
Digital 6% Revenues 33.6 30 9.25 7.9 27% Direct Costs 20.2k 16.9k 20% Operating Results 30
Slide 31: FY18 H1 Group Results
FY18 H1 HIGHLIGHTS 33.6 30 9.25 FY18 H1 DIVISIONAL RESULTS 7.9 FY18 H1 GROUP RESULTS 20.2k 16.9k Q&A 24.3 31 22.1
Slide 32: Turnover Trend (Kshs m)
Turnover Trend (Kshs m) 6.7% 33.6 30 9.25 7.9 20.2k 16.9k 24.3 32 2012 2013 2014 2015 22.12017 2016 2018
Slide 33: Cost of Sales (Kshs m)
Cost of Sales (Kshs m) 11% 33.6 30 9.25 7.9 20.2k 16.9k 2012 2013 2014 2015 24.32017 2016 2018 33 22.1
Slide 34: Total Costs (Kshs m)
Total Costs (Kshs m) 33.6 30 9.25 1.4% 7.9 20.2k 16.9k 2012 2013 2014 2015 24.32017 2016 2018 34 22.1
Slide 35: Consolidated Statement of Comprehensive Income (Kshs m)
Consolidated Statement of Comprehensive Income ( Kshs m) Jun-18 Jun-17 % Change Turnover Profit before income tax and exceptional items 33.6 4,923.1 30 9.25 1,103.1 5,274.2 1,190.9 (6.7) (7.4) Exceptional items: 7.9 Provision for overdue debts (291.6) (17.5) Revaluation of financial assets (49.7) (2
Slide 36: Statement of Financial Position (Kshs m)
Statement of Financial Position ( Kshs m) 30-Jun-18 30-Dec-17 Capital and reserves Share capital 471.4 471.4 Other reserves (142.0) (72.5) 33.6 Retained earnings 6,545.30 6,302.30 Proposed dividends Non controlling interest 30 9.25 1,696.90 8,571.60 49.7 1,414.10 8,115.30 51 Total equity & Non-curre
Slide 37: Condensed Cash Flow Statement (Kshs m)
Condensed Cash Flow Statement (Kshs m) 6 months ended 6 months ended June 2018 June 2017 Cash generated from operations Tax paid Net cash from operating activities 33.6 30 9.25 1,231.5 (411.4) 820.1 2,282.6 (799.2) 1,483.4 Net cash used in investing activities (36.5) 7.9 147.0 Net cash from financin
Slide 38: Earnings Per Share (Kshs)
Earnings Per Share (Kshs) 7 6 5 33.6 30 9.25 4 7.9 45% 3 2 20.2k 16.9k 1 0 2011 2012 2013 2014 201524.3 2016 2017 2018 38 22.1
Slide 39: Dividends
Dividends 33.6 30 9.25 7.9 20.2k 16.9k 24.3 39 22.1
Slide 40: Interim Dividend
Interim Dividend Dividends per Share (Kshs) 3 2.50 2.50 2.50 2.50 2.50 2.50 3 2 33.6 30 9.25 2 1.50 7.9 1.50 1 20.2k 16.9k 1 0 2011 2012 2013 2014 2015 24.3 2016 2017 2018 40 22.1
Slide 41: 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 42: Thank You