Saregama India Limited · NSE:SAREGAMA
Saregama India — Q2 FY24 Earnings Presentation
32 slides from Saregama India's earnings presentation, November 2023
Slide 1: Saregama India Limited Quarterly Presentation Q2 FY24
SAREGAMA INDIA LIMITED | QUARTERLY PRESENTATION | Q2 FY24
Slide 2: Saregama Strengths
SAREGAMA STRENGTHS India’s only entertainment company with IP offerings across media channels (music, films, web series and TV serials), delivery platforms (physical and digital) and business models (licensing and retail) Large intellectual property portfolio of 150K+ songs, 70 films and web series,
Slide 3: Key Financial Metrics
SAREGAMA KEY FINANCIAL METRICS Revenue From Operations (INR Mn) Adjusted EBITDA (INR Mn) PBT(INR Mn) 7,366 50% CAGR 2,712 22% CAGR 58% CAGR 2,481 2,230 5,806 5,447 2,044 5,215 4,420 1,519 1,451 3,566 2,185 847 786 763 603 511 389 237 159 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY17 FY18 FY19 FY20 FY21 FY
Slide 4: Acquisition Highlights
ACQUISITION HIGHLIGHTS 4
Slide 5: Pocket Aces Pictures Pvt Ltd
POCKET ACES PICTURES PVT LTD India’s leading digital media entertainment company incorporated in 2013. Based out of Mumbai 1. Direct to Consumer content: Short-form video content published on own channels such as Filter Copy, Gobble, Dice, Nutshell and producing 50+ videos every week. Working with 2
Slide 6: Building Synergies
BUILDING SYNERGIES Content We complement content creation for different customer segments Creation is the 0 -12 Years – Saregama 12-35 Years – Pocket Aces 35+ Years – Saregama Core While Saregama focusses on Mainstream Culture, Pocket Aces thrives on Counter-Culture Youth Centric Pocket Aces’ chemis
Slide 7: Content IP: Both Companies Fit Each Other as a Jigsaw Puzzle
CONTENT IP : BOTH COMPANIES FIT EACH OTHER AS A JIGSAW PUZZLE Creation 1 min 3 min 22 min 45 min 120 min Talent Songs TV Series Web Capability Video Series Films Building Monetisation Music Video Brands TV Live / Wedding Corporate OTT OTT Channels Events Relationships Strength 2M Marketing 97M 8M Ta
Slide 8: Company Overview
COMPANY OVERVIEW 8
Slide 9: Music Licensing, Music Retail, Films & Series, Live Events
MUSIC LICENSING, MUSIC RETAIL, FILMS & SERIES, LIVE EVENTS 1,574 1,024 702 476 521 Film, Events and Series, FY19 FY20 FY21 FY22 FY23 * * 4,410 21% * 3,585 * 2,839 FY23 1,949 2,361 Revenue INR 7366 Mn 61% 2,948 FY19 FY20 FY21 FY22 FY23 18% * One time income of INR 84Mn in FY23, INR 97Mn in FY22, 2,06
Slide 10: Strategic Overview
STRATEGIC OVERVIEW To be a Pure Play Content Company capitalising on the global content consumption boom driven by the ever-increasing Digitisation Through licensing to EVERY 3rd party Digital (music, video, social) and TV platform. Monetisation of Existing IP Carvaan transitioning from being a Prod
Slide 11: Path to Leadership Position in Music Segment
PATH TO LEADERSHIP POSITION IN MUSIC SEGMENT Disproportionate Share of New Content across Hindi & Regional Languages + Acquisition of Small & Mid size Music Catalogues using Cash Reserves + Better Monetisation Capability on the back of Catalogue + New Content strength Deeper artiste relationships +
Slide 12: Revenue from Catalogue Music Continues to Grow
MUSIC SEGMENT REVENUE FROM CATALOGUE MUSIC CONTINUES TO GROW Annual Growth in Music Licensing Revenue from Saregama owned Songs classified by Decade of Release FY19 FY20 FY21 FY22 FY23 2001 – 2020 47% 24% 18% 4% 19% 1981 – 2000 32% 18% 27% 1% 19% Till 1980 24% 23% 20% 5% 7% All revenue from derivati
Slide 13: Saregama Is No Longer a Catalogue Company
MUSIC SEGMENT SAREGAMA IS NO LONGER A CATALOGUE COMPANY 33% of Saregama’s songs were released post 2000, and they contributed to 48% of FY23 revenue FY23 150k+ songs generated Licensing Revenue INR 4,410 Mn * Era wise Breakup 2021-2023 8% 27% 2001-2020 25% 21% 1981-2000 26% 21% 1961-1980 25% 29% Til
Slide 14: Our Growth Strategy in Video Segment
OUR GROWTH STRATEGY IN VIDEO SEGMENT Pick Films and Cast primarily basis recoveries from Digital and TV licensing + Pick Web Series basis pre-licensing approval from a VoD platform Retain IP Volume of Films / Series to drive Greater emphasis on regional for Portfolio building & future Cost Optimisat
Slide 15: Our Licensing Partners
OUR LICENSING PARTNERS Streaming Partners Broadcasting Partners Video Streaming Partners Music Music + Films & Series Music + Films & Series vO uVid v Social Media Platforms Brands Music + Films & Series Music 15
Slide 16: Operational Highlights
OPERATIONAL HIGHLIGHTS 16
Slide 17: Music Segment Revenue per Quarter
MUSIC SEGMENT REVENUE PER QUARTER (INR Mn) 1569 1547 1509 1491 1378 1333 1274 1216 1175 1142 1004 919 858 696 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 * One time income of INR 84Mn in FY23, INR 97Mn in FY22 and INR 155Mn in FY21
Slide 18: Music Licensing - Monetisation
MUSIC LICENSING - MONETISATION • OTT : Progressive shift seen as paid subscription replaces free consumption. 3 more players (Gaana, Resso and Hungama) have moved behind paywalls. Strong revenue growth in medium to long-term despite short term pressure (due to minimum guarantees going away) • Brand
Slide 19: Growing Faster Than Competition on YouTube Consumption
GROWING FASTER THAN COMPETITION ON YOUTUBE CONSUMPTION YoY YouTube Views Growth SIL Vs Competition 46% 34% 28% 8% 5% -5% 2% 2% -5% FY22 FY23 FY24 -3% -6% -5% -8% -12% -18% SIL YoY % Growth C 1 YoY % Growth C 2 YoY % Growth C 3 YoY % Growth C 4 YoY % Growth • The above growth is basis year on year YT
Slide 20: Major Film Albums Released in H1 FY24
Major Film Albums Released in H1 FY24 - Building IP for tomorrow Box Office Collection Film Language No. of Songs Production House Star Cast (Rs. Cr) Dharma Productions, Rocky Aur Rani Kii Prem Kahaani Hindi 14 Viacom18 Studios 12th Street Entertainment, Alia Bhatt Ranveer Singh 350+ Zara Hatke Zara
Slide 21: Chartbuster Songs of H1 FY24
Chartbuster Songs of H1 FY24 eee ee #lin #li fue #402 a #26. | #le 10h 5M&; # is Kc a #4 #2 i #48, #5 aa #1lz #12. 5 Di a 7M REELS Hew #1 wa A #1 ae #1 Ae Hl #4 Sem HOt HL tesa
Slide 22: Music Segment: Content Creation (Film Music)
MUSIC SEGMENT : CONTENT CREATION Film Music released in Q2 FY24 HINDI TELUGU TAMIL Samantha & Vijay Deverakonda Naga Shaurya & Yukti Thareja Suriya & Disha Patani Ranveer Singh & Alia Bhatt Sivakarthikeyan Kareena Kapoor Khan Ravi Teja Ruhani Sharma Vijay Antony Surjith MALAYALAM Kannada Marathi Bhu
Slide 23: Music Segment: Content Creation (Non-Film Music)
MUSIC SEGMENT : CONTENT CREATION Non-Film Music released in Q2 FY24 BHOJPURI GUJARATI HINDI Omkar Singh Saaj Bhatt Neelkamal Singh Kajal Maheriya Gunjan Singh Gen z Grooves Madhur Sharma Shivam Singh & Shivani Singh Rakesh Barot Vijay Chauhan, Shilpi Raj DEVOTIONAL Utkarsh Sharma Om Namah Shivaya Ma
Slide 24: Music Retail
MUSIC RETAIL Retail: CARVAAN SALES (units '000s) 200 • Unit Sales grew 21% Y-o-Y 180 189 168 160 140 156 149 • High contribution of Carvaan Mobile resulting in unit 120 141 139 realisation coming down. Margin % maintained 100 103 112 80 98 60 40 20 45 0 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY2
Slide 25: Films & Series
FILMS & SERIES Films and Web Series Upcoming releases Released Asif Ali and Sunny Wayne starrer “Kasargold” during the quarter. Digital Release on Netflix in October’23. Kasargold Anveshippin Malaikottai Valiban Bazooka Asif Ali Tovino Thomas Mohanlal Mammootty TV Segment Future Outlook • “Ilakkiya”
Slide 26: Financial Highlights Consolidated
FINANCIAL HIGHLIGHTS CONSOLIDATED 26
Slide 27: Quarterly Financial Summary
QUARTERLY FINANCIAL SUMMARY Particulars (INR Mn) Q2 FY24 Q1 FY24 Q-o-Q Growth Q2 FY23 Y-o-Y Growth Revenue from Operations • Music 1,569 1,491 5% 1,509 4% • Films and Television serials 151 122 24% 153 (1)% • Events 4 20 (80)% 188 (98)% Revenue from Operations 1,723 1,633 6% 1,850 (7)% Adjusted EBID
Slide 28: Adjusted EBIDTA to PAT
ADJUSTED EBIDTA TO PAT Q-o-Q Y-o-Y Particulars (INR Mn) Q2 FY24 Q1 FY24 Q2 FY23* FY 23* Growth Growth Revenue from Operations (A) 1,723 1,633 6% 1,850 (7)% 7,366 Total Expenses (B) 1,003 1,010 (1)% 1,146 (12)% 4,654 Adjusted EBIDTA (C= A-B) 720 623 16% 704 2% 2,712 Adjusted EBIDTA Margin (%) 42% 38%
Slide 29: Balance Sheet
BALANCE SHEET As at 30th As at 31st As at 30th As at 31st Equity and Liabilities (INR Mn) Assets (INR Mn) September 2023 March 2023* September 2023 March 2023* Shareholder's fund Non-current assets 193 193 (a) Property, plant and equipment 2,213 2,207 (a) Equity share capital (b) Right-of-use assets
Slide 30: Cash Flow Statement - Amended
CASH FLOW STATEMENT - Amended Particulars (INR Mn) H1 FY24 FY 23* Pre-Tax Profit 1,247 2,481 Change in other operating activities ( including non-cash Items) (249) (432) Change in Working capital 531 116 Taxes Paid (253) (669) Net cash generated from Operating Activities (A) 1,276 1,496 Investment i
Slide 31: Financial Charts (Consolidated)
FINANCIAL CHARTS (CONSOLIDATED) Revenue from Operations Music Licensing Revenue Content Charge (INR Mn) PAT (INR Mn) (Turnover) (INR Mn) (INR Mn) * 1,850 4,410 679 * 7,366 1,526 3,585 * 5,806 463 * 5,447 2,839 1,135 5,215 2,361 4,420 1,949 543 179 176 435 99 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 F
Slide 32: Disclaimer
DISCLAIMER Saregama India Ltd. Disclaimer: In evaluating our business, we consider and use non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, PAT Margin, Debt to Equity Ratio, Return on Equity, to review and assess our operating performance. These non-GAAP financial