Nation Media Group Limited · NSEKE:NMG
Nation Media — FY2018 Earnings Presentation
52 slides from Nation Media's earnings presentation, Apr 17, 2019
Slide 1: Investor Briefing Full Year Results 2018
INVESTOR BRIEFING FULL YEAR RESULTS 2018 17TH APRIL 2019
Slide 2: F18 Highlights, Business Sustainability, Results
F18 Highlights 2016 FULL YEAR HIGHLIGHTS Business Sustainability RESULTS F18 Performance Overview BRIEFING RESULTS 2016 GROUP DIVISIONAL UPDATES F18 Group Q& Results A Q&A
Slide 3: Our Products
Our Products Kenya Uganda 33.6 9.25 7.9 20.2k 16.9k Tanzania Rwanda 24.3 3 www.nationmedia.com
Slide 4: Our Values
Our Values Continuous Improvement & Consumer Focus We are a team Innovation Integrity & Trust Drive for Performance Inspiring leadership; Team work; Continuous improvement
Slide 5: 2018 Highlights, Performance Overview, Group Results
2018 HIGHLIGHTS 2018 PERFORMANCE OVERVIEW 2018 GROUP RESULTS Q&A
Slide 6: Thought Leadership
Thought Leadership | Nation Leadership Forum | Mwananchi Thought Leadership Forum | Monitor Thought Leadership Forum | NTV Economic Forum Attendance: Attendance: Attendance: 1550 Attendance: 250 1050 1200 Partners: Partners: Partners: 20 20 Partners: 18 5 Online Engagement: Online Engagement: Online
Slide 7: New Monday magazine in the Daily Nation
An engaging, informative and entertaining magazine published every Monday in the Daily Nation Target Audience: 8-14 years Launch Date: 19th March 2018 Creating a new audience segment within a younger demographic 7
Slide 8: March 2018 audience figures
March 2018 32.3 30 8.96 7.9 18.9k 16.9k 23.3 22.1
Slide 9: March 2019 digital footprint growth
MarchMarch 20192019 37.2 10.4 10.7K 26.8 Digital footprint growth of 15%
Slide 10: Traffic by Top Geo - 2018
Traffic by Top 10 Geo - 2018 More than half of the traffic (60%) is local on average. 10 US and UK next top traffic sources respectively.
Slide 11: Lit Music
a LT LT 963 SIRGE) ©—_-RECENRD
Slide 12: KenyaBuzz
A directory for movies, events & ticketing Cinema presence on the ticketing platform Circulation growth from 10,000 to 20,000 16.9k • Revamping KenyaBuzz • Launching UgandaBuzz & TanzaniaBuzz 12 www.kenyabuzz.com
Slide 13: Xixo Collective
Xixo Collective
Slide 14: Online food channel
530 video recipes Average of 7,500 monthly unique visitors 32,909 users 329, 821 page views 14 Online food channel
Slide 15: Nation Media Group
& Nation Media Group —— (Media of Africa for Antica. 15
Slide 16: WhatsApp Channels
WhatsApp Channels WhatsApp is the most used messenger platform world over. East Africa Footprint > 20 Million • Started – Oct 2018 • Started - Feb 2019 • Started – March 2019 • Subscribers - 16,021 • Subscribers – 5,086 • Subscribers - 204 16
Slide 17: New NTV Local Programming
New NTV Local Programming Introduction of new local programme line up to drive up audience acquisition and engagement
Slide 18: New on NTV - Uganda
New on NTV - Uganda THE VYBE HOT STEPS cE Mon - Fri 3:30PM (Musical show) y 5:00P (Dance Competition) Sunday 4:00PM Monday 8:00PM (Drama series) fe a WD antvuganda f NTVUganda . www.ntv.co.ug
Slide 19: International Awards - 2018
International Awards - 2018 19
Slide 20: Local Awards
Local Awards Kenya: Annual Journalism Excellence Awards 2018 (AJEA) 20
Slide 21: Excellence in Journalism Awards Tanzania 2018
Uganda (MPL & NTVU) Tanzania: Excellence in Journalism Awards Tanzania (EJAT) in 2018 21
Slide 22: Marketing Highlights
Marketing Highlights FIFA World Cup Launch NTV on the Road EABC Awards Top 100 Awards Top 40 Under 40 - Women Top 40 Under 40 - Men
Slide 23: Corporate Social Investment
Corporate Social Investment MPL donates assorted items to cancer patients at Kiota Kona, NMG participated at the 2018 NMG participated at the 2018 Kawempe Mater Heart run StanChart Marathon in Nairobi Mwananchi Communications NMG (KE) donated books to more NMG staff at the 2018 Mutuini sponsors the
Slide 24: New Key Appointments
New Key Appointments Richard Tobiko Pamela Makotsi - Sittoni Wayua Muli Ng’ang’a Mbugua Group Finance Director Executive Editor Editor, Saturday Nation Managing Editor, Business Daily Managing Editor, The David Aduda Rachel Wanyoike Mutuma Mathiu EastAfrican & Africa Editor, Partnerships & Projects
Slide 25: NMG@60
NMG@60 Celebrate our 60 years of being a true, trusted & independent 25 champion of society
Slide 26: Business Sustainability
Business Sustainability 26
Slide 27: Kenya: Newspaper market, print vs digital
Kenya: Newspaper market, print vs digital, 2013 – 2022 (US$ millions) Source: Global Entertainment and Media Report (PWC) 2018 - 2022 27 Newspaper revenues to grow with focus on digital, not print
Slide 28: Global digital revenues
Global digital revenues US$ million at current prices 28 Source: PWC
Slide 29: NMG e-paper performance
NMG e-paper performance Active Subscriptions (monthly average) Net Revenue (KES Millions) 7,000 60 6,000 50 5,000 40 4,000 3,000 30 2,000 20 1,000 10 0 Daily Nation Business Daily 0 Jan-18 Jan-19 2017 2018 Strong growth in 2018: 48% propelled by evolving consumption patterns and aggressive corporate
Slide 30: The Challenge
The Challenge Our KEY CONSUMERS have gone wholeheartedly DIGITAL-SOCIAL-MOBILE. We need to be RELEVANT in their lives by being the provider of UNIQUE, HIGH QUALITY CONTENT at their CONVENIENCE in their WAY 30
Slide 31: Where we play and How we win
Where we play and How we win • MOBILE FIRST • FIRST WITH THE TRUTH • QUALITY, DIFFERENTIATED • SUPERIOR USER EXPERIENCE CONTENT • RIGHT FOR YOUR LIFE • MULTIPLE PLATFORMS 31
Slide 32: Our Commitment
Our Commitment We will give our consumers highly desirable content that fits into their worlds, wherever, however and whenever they need it 32
Slide 33: Our Action Agenda
Our Action Agenda 1 Track and understand the changing needs of the CONSUMER 2 Produce dynamic CONTENT that evolves with its user 3 Deliver superior USER EXPERIENCE (Across platforms) 4 Leading societal conversations by LIVING OUR VALUES (Always) 5 Recruit and grow AUDIENCES (Across platforms) 33
Slide 34: Business Objective
Business Objective We are a content company; our competitive edge will be based on content Digital, Innovation & Our values are enablers to achieve the business objective Purpose for NMG: To transform society in a sustainable manner 34
Slide 35: New Business Model
New Business Model Diversifying revenue opportunities (advertiser and consumer) Invest in understanding the consumer to develop products that connect and engage them Adopt appropriate distribution model to engage audiences (Enhanced user experience) 35
Slide 36: Data Insights for understanding consumer
Data Insights for understanding consumer Opinion Mining Website traffic Analysis DATA Segmentation & Churn Rate Analysis Data journalism Prediction & Intervention We endeavour to gain a better understanding of our audience and their content needs 36
Slide 37: Building innovation culture
Building innovation culture Innovation Portal Innovation Reward (Idea Generation) Scheme Innovation Framework Training & Capacity Building Creating an enabling environment for creativity, experimentation and unconventional 37 thinking, challenging the status quo and the old way of doing things
Slide 38: Driving sustainability
Driving sustainability Content Digital Monetization Marketing Events DATA Data Insights We must lead the migration to digital and aggressively lead our audiences in new spaces by providing unique value that keeps them engaged on our platforms 38
Slide 39: 2018 Highlights, Performance Overview, Group Results
2018 HIGHLIGHTS 2018 PERFORMANCE OVERVIEW 2018 GROUP RESULTS Q&A
Slide 40: Business Overview 2018
Business Overview 2018 40
Slide 41: 2018 Performance Overview
2018 Performance Overview NTV Kenya Delays in payment Key advertising Challenging business Newsprint Closure discontinued environment price increase FIFA World cup Talent MCL Growth of online coverage Retention shareholding audiences Strategic partnerships Interest income UGX Government decline Depr
Slide 42: 2018 Highlights, Performance Overview, Group Results
2018 HIGHLIGHTS 2018 PERFORMANCE OVERVIEW 2018 GROUP RESULTS Q&A
Slide 43: Group Turnover Trend (Kshs M)
Group Turnover Trend (Kshs M) 13,374 13,351 14,000 12,347 12,340 (9.1%) 11,325 12,000 10,625 9,661 10,000 8,000 6,000 4,000 2,000 - 2012 2013 2014 2015 2016 2017 2018 43
Slide 44: Cost of Sales (Kshs M)
Cost of Sales (Kshs M) 3,000 2,660 2,699 2,539 2,452 7.9% 2,500 2,000 1,964 2,000 1,808 1,500 1,000 500 - 2012 2013 2014 2015 2016 2017 2018 44
Slide 45: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income (Kshs M) 2018 2017 % Change Turnover 9,660.6 10,624.9 (9.1) Profit before Income tax 1,634.0 1,954.6 (16.4) Income tax expense (516.5) (643.8) 19.8 Other comprehensive income (60.8) 40.1 >(100) Total Comprehensive Income for the year 1,056.7 1,350.9 (21
Slide 46: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (Kshs M) 2018 2017 Capital and reserves Share capital 471.4 471.4 Other reserves (136.4) (72.5) Retained earnings 6,826.0 6,302.3 Proposed dividends 659.9 1,414.1 Non-controlling interest 56.7 51.0 Total equity 7,877.6 8,166.3 Non-current liabilities 30.0
Slide 47: Condensed Cash Flow Statement
Condensed Cash Flow Statement (Kshs M) 2018 2017 Cash generated from operations 1,142.2 2,807.7 Tax paid (566.6) (1,112.4) Net cash from operating activities 575.6 1,695.3 Net cash generated in investing activities 309.2 534.0 Net cash used in financing activities (1,697.4) (1,885.5) Increase/ (Decr
Slide 48: Earnings Per Share (Kshs)
Earnings Per Share (Kshs) 13.3 13.4 13.1 11.8 8.9 6.9 5.9 2012 2013 2014 2015 2016 2017 2018 48
Slide 49: Proposal for 2018 Dividend
Proposal for 2018 Dividend 46
Slide 50: Dividend Trend
Dividend Trend 12 Dividends per Share (Kshs) 10.00 10.00 10.00 10.00 10.00 10.00 10 8.00 8.00 8 6 5.50 5.50 5.00 4 2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Dividend rate at Kshs. 5.00 per share 50
Slide 51: 2018 Highlights, Performance Overview, Group Results
2018 HIGHLIGHTS 2018 PERFORMANCE OVERVIEW 2018 GROUP RESULTS Q&A
Slide 52: www.nationmedia.com
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