Jagran Prakashan Limited Jagran Prakashan
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Jagran Prakashan Limited Q1FY17 AnnualResult Presentation Presentation – FY17 1 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 securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections 2 Section 1 Section 2 Section 3 Section 4 Group High Growth Leadership – Print, Financial Introduction Strategies led by Radio & Digital Performance Acquisitions Section 1 Group Introduction 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 Multi Media Conglomerate – Width, Depth and Heritage Two #1* Print Key Product 22 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 Trusted by #1 Portal on mobile millions for over 400+ Editions / Radio 7 decades Sub Editions 39 Presence across 13 State Printing 37 9 Language 12 states Print Facilities Operations Presence * IRS 2012 Q4 6 Other Source: Internal Data, Comscore: Mobile March 2017 INext renamed as Dainik Jagran iNext Brand Strength – Stability, Consistency and Trust PRINT BUSINESS DIGITAL BUSINESS RADIO BUSINESS 7 Geographical Reach – From Jammu to Tamil Nadu Jalandhar Patiala Enhancing Pan Hissar Karnal Delhi Bareilly Bikaner India Presence Agra Jaipur Lucknow Gorakhpur Ajmer Gwalior Kanpur Patna Udaipur Varanasi Kota Print Presence : Ranchi Ahmedabad Kolkata Baroda Jamshedpur 13 State Jalgaon Surat Akola Nagpur Nasik Ahmednagar Mumbai Nanded Pune Sholapur Radio Presence : Hyderabad Kolhapur Sangli Vizag 39 Cities and 2 Sales Alliances Bangalore Chennai Print Coimbatore Radio Madurai Disclaimer: Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness 8 Section 2 High Growth Strategies 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 – English, Gujarati and Urdu 99 ▪ Total presence with 9 Languages 1,204 89 Extension of Foot Print ▪ Extension in Print Footprint in Western India and Central India ▪ Access to Radio Footprint in Large Cities of India Jagran Then Mid Day Nai Dunia Radio Jagran Now * FY17 10 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 & operator with 39* stations Inquilab ▪ Synergy : Extension of under brand Radio City presence in local market of ▪ ▪ Synergy : Extension of MPCG Synergy : Entry into Metro presence with Inquilab to cities North along with strengthening advertising revenue from key verticals like Film Industry * Includes 11 stations acquired in Phase III Auctions 11 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. shareholders received two shares of Revenue from Film Industry JPL of Rs 2 each for every seven shares of Rs 10 each held in MML 13 2015 2017 Extension in Large Cities Expansion in Indian Languages ▪ Mid-day : English Operating Profit Margins of ▪ Helped widen Geographical the Company has expanded presence in Large Cities like ▪ Mid-Day : Gujarati Mumbai from 1.1% in FY14 to 18.4% in ▪ The Inquilab - Urdu FY17 12 Nai Dunia - MPCG Key States of Hindi Heartland Net Acquisition Price – Rs 105 Crs OPERATING PROFIT ▪ Acquired in 2012 Core Assets Rs In Cr ▪ Acquisition Cost Rs 225 Cr ▪ 6 Operational Printing 04 0 Facilities, Strong Brand ▪ Rs 120 Cr recovered from Tax benefits and Trained Manpower and selling of immoveable properties ▪ Saved Gestation Time, ▪ Additional immovable properties losses and Brand available for monetization Building Cost 03 -11 2015 2017 MPCG – Huge Potential Extension of Foot Print in MPCG ▪ Literacy rate of 62% The decrease in the Operating ▪ Helped widen our Geographical 02 Profit is mainly because of ▪ News Paper 01 Presence in Hindi Heartland with penetration of only Huge Potential expansion of Circulation 15% Growth by 18% 13 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 16% +20% CAGR 1st in Web 48 271 Radio in 8 Amongst the 225 languages Leadership in 201 Highest Average Advertising 15% Listenership Volume 23 12 2011 2016 2021 2015 2016 2017 On the basis of AZ Research Report(23 Markets), March 2017 14 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 national and local level Radio can be a significant tool added to our current News 62 delivery platforms Operating Profit Margins of over 30% for The Acquisition catapults JPL to be a National Player in Radio Market the last two years Get access to the best radio markets – radio licenses are auctioned by MIB; Virtually impossible to “build” a similar radio network/brand today Helps future expansion of our media vehicles in territories beyond the JPL’s footprint area 2015 2016 2017 Strengthening JPL’s presence in New Media 15 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: your presentation 40X to life. Download ▪ Total Investment : Rs 645 Cr this awesome diagram. Pitch your ideas convincingly. Capture your audience’s ▪ attention.FY17 Revenue: Rs 271 Cr ▪ H1FY15 Revenue : Rs 94 Cr ▪ FY17 EBITDA Margin: 34% ▪ H1FY15 EBITDA Margin : 28% ▪ FY17 PAT Margin: 14% ▪ H1FY15 PAT Margin: 21% Jagran Prakashan Limited Music Broadcast Listing done at Valuation of Pre IPO Shareholding - 89.40% ~Rs. 2000 Cr on 17th March 2017 Post IPO Shareholding - 70.58% 16 Section 3 Leadership – Print, Radio & Digital Largest Read Print Group of India Jammu & Kashmir Dainik Jagran is Himachal India’s #1 Daily* Pradesh 68mn* 13 Punjab Readers States Uttarakhand Haryana Delhi Uttar Pradesh Bihar Jharkhand 9 5 Madhya Pradesh West Bengal Publications Languages Chhattisgarh Mumbai 400+ 53mn+ Inquilab is India ‘s #1 Editions/ Sub-Editions Circulation Urdu Daily* * IRS 2012 Q4 18 Disclaimer: Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness iNext renamed as Dainik Jagran iNext 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 not reading Newspaper USD 54 bn Annual Consumer Spend 12% of India Large no. of Tier II cities Target market for Advertisers 12 out of 62 Tier II cities in the country Jagran Peer 1 Peer 2 Source: Census 2011, MOSPI, Cities Tier as per MOF incl.