Jagran Prakashan Limited · NSE:JAGRAN
Jagran Prakashan — FY2017 Earnings Presentation
41 slides from Jagran Prakashan's earnings presentation, May 29, 2017
Slide 1: Jagran Prakashan Limited FY17 Results Presentation
Jagran Prakashan Limited Q1FY17 Annual Presentation Result – FY17 Presentation 1
Slide 2: 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 3: Sections overview
Section 1 Section 2 Section 3 Section 4 Group High Growth Leadership – Print, Financial Introduction Strategies led by Radio & Digital Performance Acquisitions
Slide 4: Group Introduction
Section 1 Group Introduction
Slide 5: Jagran Today
Jagran Today ~Rs.6000 Cr ~Rs.2000 Cr MARKET CAP MARKET CAP Print Digital Radio Jagran Prakashan Limited holds 70.58% of Music Broadcast Limited Activation OOH (RadioCity) 5
Slide 6: Multi Media Conglomerate – Width, Depth and Heritage
Multi Media Conglomerate – Width, Depth and Heritage Two #1* Print 22 Key Product Dailies, Dainik Jagran India’s Largest* and Service (Hindi) and Inquilab read daily- Dainik Brands (Urdu) Jagran 9 Print 68+ mn* Publications 10 Digital Readers Media Portals 5 Business Verticals Jagranjosh.com is Trus
Slide 7: Brand Strength – Stability, Consistency and Trust
Brand Strength – Stability, Consistency and Trust PRINT BUSINESS DIGITAL BUSINESS RADIO BUSINESS 7
Slide 8: 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 9: High Growth Strategies
Section 2 High Growth Strategies
Slide 10: 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 11: 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 ▪ Three well known brands – ▪ Leading Hindi daily of MPCG ▪ One of India’s leading FM Miday, Gujarati Mid day & op
Slide 12: 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 13: 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 14: 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 RADIO INDUSTRY MBL REVNUE 15 cities Rs In Cr Rs In Cr CAGR 16% +20% 1st in Web 48 271 Radio in
Slide 15: 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 16: 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 17: Leadership – Print, Radio & Digital
Section 3 Leadership – Print, Radio & Digital
Slide 18: 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 5 Madhya Pradesh Jharkhand West Bengal Publications Languages Chhattisgarh Mumbai 400+ 53mn+ Inquilab is India ‘s #1 Ed
Slide 19: With Leadership & Supremacy in Markets that Matter
With Leadership & Supremacy in Markets that Matter UP - 2nd Largest State in GDP terms #1 in Circulation: 8.1 % contribution in India’s GDP Way ahead of Peers Home to 20 Cr People 16.5% of India’s Population AVERAGE DAILY CIRCULATION In Lakhs 39.2 38.1 11.4 Crs literate Population 31.8 49% of which
Slide 20: 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 21: 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 22: 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 23: 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 34% Margins *Note : The
Slide 24: 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 25: Digital Business – Investing to Build leadership
Digital Business – Investing to Build leadership Our Digital Media Portfolio Indian website in overall Healthcare Industry • For the year ended 2017 Education portal growth in Digital Topline “Jagranjosh.com” on Mobile with #1 mn unique 3.87 mn unique ✓ 52.3% Growth at visitors users Rs. 29.40 crs 3
Slide 26: Financial Performance
Section 4 Financial Performance
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: Operating Margin Break-up
Operating Margin Break-up Publications (Rs. in Crs) FY17 FY16 Dainik Jagran Operating Revenue 1,531.1 1,458.8 Operating Profit 529.3 505.2 Operating Margin 34.6% 34.6% Other Publications Operating Revenue 342.4 322.9 Operating Profit* 29.5 32.0 Operating Margin 8.6% 9.9% Outdoor and Activation busin
Slide 34: Standalone Profitability Statement
Standalone Profitability Statement Rs In Cr Q4 FY17 Q4 FY16 YoY FY17 FY16 YoY Revenues 467.1 436.7 7% 1,900.1 1,778.9 7% Advertisement Revenue 320.6 305.3 5% 1,329.1 1,258.0 6% Circulation Revenue 103.4 99.9 3% 405.5 384.2 6% Others 43.2 31.5 37% 165.5 136.8 21% Raw Material 148.4 150.5 624.4 601.9
Slide 35: Standalone Balance Sheet
Standalone Balance Sheet ASSETS (Rs. In Cr) Mar-17 Mar-16 EQUITY AND LIABILITIES (Rs. In Cr) Mar-17 Mar-16 Non-Current Assets 1,573.5 1,166.5 Equity and Liabilities 1,670.2 1,357.6 Property, plant and equipment incl. CWIP 549.5 548.4 Equity share capital 65.4 65.4 Goodwill 229.4 229.4 Other intangib
Slide 36: MBL - Profitability Statement
MBL - Profitability Statement In Rs. Crs FY17 FY16 YoY Revenue 271.4 225.5 20% Licenses Fees 19.2 17.2 Employee Expenses 65.1 51.1 Advertising Expense 24.0 20.6 Other Expenses 71.9 58.4 EBITDA 91.3 78.1 17% EBITDA Margin 33.6% 34.7% Other Income 4.4 14.7 Depreciation/Amortization 19.7 16.7 EBIT 76.0
Slide 37: MBL - Balance Sheet
MBL - Balance Sheet ASSETS (Rs. In Cr) FY17 FY16 EQUITY AND LIABILITIES (Rs. In Cr) FY17 FY16 Total Non Current Assets 361.9 362.2 Equity and Liabilities 548.1 210.0 Fixed Assets 311.6 296.0 Equity Share Capital 57.1 42.0 Tangible Assets 35.3 8.2 Intangible Assets 276.3 222.1 Other Equity 491.1 168.
Slide 38: 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 39: 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 40: 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 40
Slide 41: 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