Saregama India Limited · NSE:SAREGAMA
Saregama India — Investor Presentation (May 2021)
41 slides from Saregama India's investor presentation, May 2021
Slide 1: Reclaiming the Leadership Position – Corporate Presentation May 2021
Woh sikandar hi dosto, Kehlaata hai Haari baaji ko jeetna, Jise aata hai RECLAIMING THE LEADERSHIP POSITION CORPORATE PRESENTATION | May 2021
Slide 2: Saregama
Saregama India’s oldest Music Label and youngest Film Production house Producing digital thematic films targeted at the youth segment. 16 movies released on Consistent Dividend Yield and Netflix / Disney Hotstar / Zee5 in 4 yrs Zero Net Debt Company Leading producer in terms of number of hours of co
Slide 3: India's Only Entertainment Company
Saregama INDIA’S ONLY Entertainment Company into MUSIC LICENSING DIGITAL as well as FILMS RETAIL PHYSICAL Music Films Television Serials Retail Business India’s Largest Music IP Content IP rights of Content IP rights of Distribution network 130k+ 61 6k+ 30k+ Songs Films Hours of Television Serials R
Slide 4: Strategic Overview: Digitisation Driving Growth
Strategic Overview D I G I T I S AT I O N D R I V I N G G R OW T H Digital Increase in Increase Demand for Boom in India in App Usage Content Video/Music Streaming Netflix / Spotify / Gaana Music Social Media Films Youtube / Facebook ~700M smart phones Games driving Video Sharing driving Cheap Data
Slide 5: 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 6: Company Overview
COMPANY OVERVIEW
Slide 7: Financial Summary
Financial Summary Particulars (INR Mn) FY21 FY20 Y-o-Y Growth FY19 Revenue from Operations • Music 3,855 4,444 (14)% 4,897 • TV & Films 521 702 (26)% 476 • Publication 44 69 (36)% 74 Revenue from Operations 4,420 5,215 (15)% 5,447 Operating Income before Content Charge, Interest 1,451 763 90% 786 an
Slide 8: OIBCID to PAT
OIBCID to PAT Particulars (INR Mn) FY21 FY20 Y-o-Y Growth FY19 Revenue from Operations (A) 4,420 5,215 (15)% 5,447 Total Expenses (B) 2,969 4,452 (33)% 4,661* OIBCID (C= A-B) 1,451 763 90% 786 OIBCID Margin (%) 33% 15% 14% Content Charge (D) 179 176 2% 99 Depreciation (E) 27 29 (7)% 17 Finance Cost
Slide 9: Awards & Accolades
Awards & Accolades Carvaan Yoodlee WAARC Innovation Brand Equity HAMID KD AJJI Awards Marketing Awards National Awards National Awards Beaune film festival Special Award for 2018 Best Urdu Film Best Child Actor Best Film Award Category Innovation ‘Innovation of the Best Child Actor: (fresh blood and
Slide 10: Music Segment
MUSIC SEGMENT Licensing & Retailing
Slide 11: Music Industry
Music Industry • Indian Music industry remains at INR 15.3 Billion in 2020 and is expected to Indian Music Industry Size (INR Bn) grow at a CAGR of 15% to cross INR 23.2 Billion by 2023. (EY FICCI report, Mar’21 release) % GR 15.0 23 CA • The growth in India has come on the back of digital consumpti
Slide 12: Fast Growing Licensing Revenue
Saregama Music IP Licensing Revenue (INR Mn) * Fast Growing FY21 FY20 2,361 * 2,839 Licensing Revenue FY19 FY18 1,478 1,949 FY17 1,388 * One time income of INR 155 Mn (FY21) and INR 21 Mn (FY20) are excluded On account of A. Growing customer interest in Retro Music B. Saregama’s Focus on New Music C
Slide 13: Our Music Licensing Partners
Our Music Licensing Partners Music Streaming Platforms Broadcasting Platforms Video Streaming Platforms v v v Social Media Platforms Brands 13
Slide 14: 130000+ Songs
Most EXTENSIVE Indian Music Library 130000+ Songs Covering multiple Indian languages and genres HINDI BENGALI TAMIL MARATHI 38900+ 26600+ 11800+ 6300+ TELUGU MALAYALAM PUNJABI KANNADA 8100+ 7000+ 8400+ 3100+ DEVOTIONAL CLASSICAL Ghazals Folk 18300+ 8400+ 1200+ 4700+
Slide 15: Home of Legends
HOME of LEGENDS Lata Shamshad Mohd. Geeta Mukesh Kishore Mangeshkar Begum Rafi Dutt Kumar 90% 95% 90% 90% 90% 80% Asha Laxmikant- Kalyanji – Shankar – Ravi S.D. Bhosle Pyarelal Anandji Jaikishan Burman 80% 90% 90% 90% 90% 90% Madan C. Ramchandra Naushad R.D. Purshottam Jagjit Mohan Burman Das Jalota
Slide 16: Music of the Biggest Films of Bollywood
Music of the BIGGEST films of Bollywood
Slide 17: Music Licensing
Music Licensing A. MUSIC STREAMING APPS (OTT) B. SOCIAL MEDIA PLATFORMS (incl. Video sharing Apps) Saregama Music is licensed to multiple Global Platforms Saregama has 25 channels on YouTube with a cumulative • Saregama licenses its music to various OTT platforms for subscriber base of over 44 Mn on
Slide 18: Music Licensing
Music Licensing C. VIDEO STREAMING PLATFORMS D. BROADCASTING PLATFORMS – TV CHANNELS, BRANDS With the rising popularity of video streaming in India, • Saregama Licenses its music to Television Channels for use in platforms like Netflix, Disney+ Hotstar, Amazon, MX various TV serials, reality shows,
Slide 19: Music IP Creation: Process
Music IP Creation: Process The Music IP will be built through new film music acquisition across Hindi, Tamil and Telugu with a clear strategy to start slowly, vet assumptions and build up the slate over a period of time The company is additionally creating non-film music in Hindi, Bhojpuri, Punjabi
Slide 20: New Bollywood Films Music
he New Boll commas (il * SANJAY LEELA BHANSALr *. ey
Slide 21: New Non-Film Music
New Non-Film Music gt. gee a ‘SINGER, MUSb
Slide 22: Latest Tamil Film Music
Latest Tamil Film Music
Slide 23: New Bhojpuri Content
New Bhojpuri Content
Slide 24: Music Retailing: Directly through Carvaan
Music Retailing : directly through Carvaan India’s most "DIFFERENTIATED" and "PREMIUM" music brand Brand Attributes Targeted at the 35+ generation, who value Convenience 35+ Convenience over Control for their audio of Use Segment listening experience The Product • Perfect blend of digital technology
Slide 25: Music Retailing: Carvaan Product to Platform
Music Retailing : directly through Carvaan Product to Platform Carvaan has been a huge success with middle-aged Indians. Saregama plans to now evolve the brand from a standalone Product to a Platform offering all kinds of daily updatable audio content to 35+ people living in India and abroad. The bi
Slide 26: Video Segment
VIDEO SEGMENT TV & Films
Slide 27: Video Segment: Yoodlee Films
Video Segment: Yoodlee Films • Yoodlee Films is Saregama’s production house focussed on creating content for 3rd party digital platforms • Saregama issues period-based licenses for its movies to these platfoms for a fixed-fee. In some cases, it also licenses the same movie to TV channels, TVoD platf
Slide 28: Video Segment: Tamil TV Serials
Video Segment: Tamil TV Serials TAMIL TV SERIALS The revenue stream is through advertising slot sales. • Saregama is the leading TV series content producer for Southern The Company also monetises these serials on digital channels. In the past, it also produced shows for Hindi GECs, but platforms lik
Slide 29: Publication
PUBLICATION
Slide 30: Publication Segment: Open Magazine
Publication Segment: Open Magazine PUBLICATION Operated through a 100% owned subsidiary • The Publication segment includes the Open Magazine, a weekly current affairs and features magazine, operated through a 100% owned subsidiary. • Open Magazine was launched in April 2009, as a print-only weekly a
Slide 31: Future Outlook
FUTURE OUTLOOK
Slide 32: Outlook
Outlook Music Licensing • The Covid19 related hiccups notwithstanding, we expect music industry to grow by 12-14%, and Saregama’s licensing revenue to grow by 22-25% annually over the next 3-5 years • The key drivers will be the growing Digitsation and cheap data plans by operators (will grow the ma
Slide 33: Financials
FINANCIALS
Slide 34: Consolidated Income Statement
Consolidated Income Statement Particulars (INR Mn) FY21 FY20 FY19 Revenue from Operations 4,420 5,215 5,447 Other Income # 309 112 564 Total Revenue 4,729 5,327 6,011 Total Expenses 3,119 4,610 5,065 Depreciation and Amortisation 56 47 33 Finance Cost 35 67 66 PBT 1,519 603 847 Tax 384 168 304 PAT 1
Slide 35: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equity and Liabilities (INR Mn) FY21 FY20 FY19 Assets (INR Mn) FY21 FY19 FY19 Shareholders Fund Non Current Fixed Assets (a) Equity Share Capital 174 174 174 (a) Property, Plant and Equipment 2,046 2,053 2,057 (b) Right to use assets 11 5 - (b) Other Equity 4,88
Slide 36: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (INR Mn) FY21 FY20 FY19 Pre-Tax Profit 1,519 603 847 Change in other operating activities ( including non-cash (176) 25 -163 Items) Change in Working capital 692 388 -916 Taxes Paid (139) (221) -126 Net cash generated from/(used in) Operating Activities (
Slide 37: Standalone Income Statement
Standalone Income Statement Particulars (INR Mn) FY21 FY20 FY19 Revenue from Operations 4,343 5,001 5,244 Other Income # 290 115 595 Total Revenue 4,633 5,116 5,839 Total Expenses 3,090 4,347 4,921 Depreciation and Amortisation 54 44 30 Finance Cost 35 67 66 PBT 1,454 658 822 Tax 384 168 303 PAT 1,0
Slide 38: Standalone Balance Sheet
Standalone Balance Sheet Equity and Liabilities (INR Mn) FY21 FY20 FY19 Assets (INR Mn) FY21 FY20 FY19 Shareholders Fund Non Current Fixed Assets (a) Property, Plant and Equipment 2,045 2,052 2,056 (a) Equity Share Capital 174 174 174 (b) Right of use Asset 11 4 (b) Other Equity 4,921 3,964 4,087 (c
Slide 39: Financial Charts (Consolidated)
Financial Charts (Consolidated) Revenue from Operations Music Licensing Revenue PAT (INR Mn) Diluted EPS (INR) (Turnover) (INR Mn) (INR Mn) * 65.0 1,135 2,839 * 5,447 5,215 2,361 4,420 543 1,949 435 3,566 283 31.2 1,478 1,388 25.3 2,185 5.0 16.2 86 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 F
Slide 40: Capital Market Data
Capital Market Data 800% 700% 600% 500% 400% 300% 200% 100% 0% Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 -100% Saregama Sensex Price Data (As of 31st March, 2021) INR Shareholding Pattern as on 31st March 2021 Face Value 10.0 Others Market Price 1,594.1 29.6
Slide 41: Disclaimer
Disclaimer Saregama India Ltd. Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in al