Nation Media Group Limited · NSEKE:NMG
Nation Media — FY2016 Earnings Presentation
35 slides from Nation Media's earnings presentation, Apr 5, 2017
Slide 1: Investor Briefing Full Year Results 2016
INVESTOR BRIEFING FULL YEAR RESULTS 2016 5TH APRIL 2017
Slide 2: Highlights, Divisional Updates, Group Results, Q&A
F16 Highlights 2016 HIGHLIGHTS F16 Divisional Updates DIVISIONAL UPDATES 2016 GROUP RESULTS F16 Group Results Q&A Q&A
Slide 3: Business Objective
Business Objective New revenue streams Protect & grow current business Consumer Digital Focus Developing a sustainable culture Grow current business & foster a strong digital foundation for a sustainable, profitable future
Slide 4: Our Objectives
Our Objectives Growing the top line Maintaining current revenues Generating new revenue streams Managing costs to invest in growth Innovating to continuously meet consumer needs Recruiting talent that matches new media demands
Slide 5: 2016 Highlights
2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q&A
Slide 6: 2016 Group Highlights
2016 Group Highlights F16 Highlights Convergence journey Embedding the digital opportunity Opportunities on new press capabilities Closure of non-performing businesses Driving out costs (Efficiency & Effectiveness) Consolidated the TV into a bilingual brand (NTV) Strategic partnerships
Slide 7: Growing Broadcasting into Profitability
Growing Broadcasting into Profitability New Programming • One strong bilingual TV station Regional Studios (NTV) • Strategic partnerships • Strong programming to drive Strong Social audience growth • Strong Social Media Presence Cost reduction Media Presence Strong Bilingual Station • Regional studi
Slide 8: NTV Programming
NTV v Programming , VELELY se 1. NCE be Nation Media Group
Slide 9: Business Daily Relaunch
Business Daily Relaunch • More data on market reports • More insights on business • Deeper business analysis • Metered content (Paywall) • Grow online audiences • Recruit younger business readers
Slide 10: New Digital Channels
New Digital Channels Alerts, Newsletters New shortcode PRSP Snapchat, Twitter, Instagram, Facebook Acquire/Create New Business Kenya Buzz Special Focus Domains Kenya Buzz News in Shots Music Label Music Label SMS, Whatsapp, News Business & News Health & East Telegraph Plex Fashion & Agriculture Elec
Slide 11: Elections Coverage
Elections Coverage Issue based campaign Impactful webpage highlights www.nation.co.ke/electionskenya Converged elections coverage Fact check reporting
Slide 12: Largest Digital Footprint in the Region
Largest Digital Footprint in the Region 9,056 36,417 5,883,370 7,142,372 3,779,47 380,197 488,269 7,903,834 4 2,349,793 924,575 119,947 216,954 2,438,946 219,052 15,804 48,60 0 935,591 11,931,111 4,923,10 515,948 746,369 1 1,084,873 17,694,588 4,539,407 3,822,785 26.1 Million Users Digital footprint
Slide 13: Acquisition Kenya Buzz
Acquisition Kenya Buzz Acquired Kenya Buzz in February 2017 Online entertainment directory Ticketing solution; Advertising (Native & Traditional) Expanding our audiences with targeted & customised experiences Audience: 18 – 35 years
Slide 14: The Most Disruptive Device Ever
The Most Disruptive Device Ever Map Album Encyclopedia Doctor Cinema Phone Wallet Translator PA TV Bank Notebook Cinema University Book Library Music Player Video Library Newspaper Alarm Insurer Social Life Key Email Device Tutor Games Console Watch Timer Dictionary Diary Travel Guide Scanner Taxi S
Slide 15: Efficiency & Effectiveness
Efficiency & Effectiveness New revenues from new press capability; Speed to market Optimised route to market; Early market arrivals; Reduced return levels Efficient press; distribution market intelligence; lean operations Cost and Debt Management Regional stations; Greater audience reach; Brand Equi
Slide 16: Protecting Media Freedoms
Protecting Media Freedoms Hostile/unpredictable environment: • Government has centralized advertising through GAA/ CAA • Government’s reduced advertising spend • Media Services Act – New restriction on foreign media ownership NMG has taken leadership with other media players to shape our regulatory
Slide 17: Thought Leadership
Thought Leadership Set the agenda for the narrative in the country Building the brand to set the agenda in the country
Slide 18: Culture Journey
Culture Journey Launched Corporate values to the team Ensure clear line of sight throughout the organisation on the deliverables Continue building the digital spectrum as a basic platform throughout the org’n as a clear means to match consumer consumption Entrepreneurship – Acting like an ow
Slide 19: Our Values
Our Values Continuous Consumer Focus Employer of Improvement & Choice Innovation Integrity & Trust Drive for Performance Inspiring leadership; Team work; Continuous improvement
Slide 20: Divisional Updates
2016 HIGHLIGHTS 2016 DIVISIONAL UPDATES 2016 GROUP RESULTS Q&A
Slide 21: Print
Print DIVISION NND TEA BD MPL MCL REVENUE 6% 16% 1% 20% 23% DIRECT COSTS 22% 42% 0.5% 17% 23% OPERATING RESULTS 4% 61% 2% >100% 56%
Slide 22: Television
Television DIVISION REVENUE 7% 29% DIRECT 1% 22% COSTS OPERATING >100% 74% RESULTS
Slide 23: Digital
Digital DIVISION KENYA REVENUE 14% DIRECT COSTS 13% OPERATING RESULTS >100%
Slide 24: 2016 Group Results
2016 HIGHLIGHTS 2016 DIVISIONAL UPDATES 2016 GROUP RESULTS Q&A
Slide 25: Turnover Trend (Kshs M)
Turnover Trend (Kshs M) 13,374 13,351 13,500 13,000 12,347 12,340 12,500 8.2% 12,000 11,246 11,325 11,500 11,000 10,500 10,000 2011 2012 2013 2014 2015 2016
Slide 26: Cost of Sales (Kshs M)
Cost of Sales (Kshs M) 2,861 3,000 2,660 2,699 2,539 2,452 18.4% 2,500 2,057 2,000 2,000 1,500 1,000 500 - 2010 2011 2012 2013 2014 2015 2016
Slide 27: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income (Kshs M) 2016 2015 % Change Turnover 11,324.8 12,339.5 (8.2) Profit before income tax 2,460.0 2,823.2 (12.9) Income tax expense (771.1) (600.5) (28.4) Other comprehensive income (54.2) (151.6) 64.2 Total Comprehensive Income for the year 1,634.7 2,071.1
Slide 28: 2016 Group Results – Non-Recurrent Items
2016 Group Results – Non-Recurrent Items Kshs. Non-Recurring/ Exceptional Items Millions Closure costs on QFM, QTV & KFM Rwanda 142.4 Start-up cost on new TV in Uganda- Spark TV 48.1 Staff Reorganisation costs 138.9 Goodwill impairment 13.5 Net non-recurring items 342.9 Others: 2015 New Press Invest
Slide 29: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (Kshs M) 2016 2015 Capital and Reserves Share capital 471.4 471.4 Other reserves (89.1) (56.4) Retained earnings 6,859.5 7,076.2 Proposed dividends 1,414.1 1,414.1 Minority interest 47.0 48.4 Total equity 8,702.9 8,953.7 Non-current liabilities 15.2 151.9
Slide 30: Condensed Cash Flow Statement
Condensed Cash Flow Statement (Kshs M) 2016 2015 Cash generated from operations 2,525.8 3,376.6 Interest received 308.3 324.6 Interest paid (2.1) (8.3) Tax paid (93.4) (767.4) Net cash from operating activities 2,738.6 2,925.5 Net cash used in investing activities (428.7) (1,339.8) Net cash used in
Slide 31: Earnings Per Share (Kshs)
Earnings Per Share (Kshs) 13.3 13.4 13.1 12.7 11.8 9.8 8.9 2010 2011 2012 2013 2014 2015 2016
Slide 32: Dividends
Dividends
Slide 33: Dividend Trend
Dividend Trend 12 Dividends per Share (Kshs) 10.00 10.00 10.00 10.00 10.00 10 8.00 8.00 8 6 5.50 5.50 4 2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total Dividend rate maintained at 10.00 per share
Slide 34: Highlights, Divisional Updates, Group Results, Q&A
2016 HIGHLIGHTS 2016 DIVISIONAL UPDATES 2016 H1 GROUP RESULTS Q&A
Slide 35: Nation Media Group
Ta Nation Media Group Media of Africa for Africa