@NationMediaGrp NationMediaGroup TRUE & TIMELESS FINANCIAL STATEMENTS Nation Centre Kimathi Street Nairobi, Kenya P.O Box 49010-00100 GPO Telephone: +254 20 328 8000 www.nationmedia.com 2018 ANNUAL REPORT & 2018 ANNUAL REPORT & FINANCIAL STATEMENTS @NationMediaGrp NationMediaGroup NMG@60 WWW.NATIONMEDIA.COM PRINT BROADCAST ONLINE OUR LEADERSHIP IS UNCHALLENGED. True and timeless FRICA ST A COMM EA UN EN IT H Y W W E A R S E F H O T R M E HEN KENY D W A RE GAI HE NE T D SE L F R U L E UNDIN D FO G FAT OVE HE EL R D B IE ’S D YA N E K N E H W E R E H T S AND A STOP T ITIC O H OL UM P AN TY R R I A G P H I- T T S L A U B M U S R E O S F D E D N A M E D D R O F S A E R E H T T H E R E A N O I S T U T A I T F S R N I O C C A ’S E W Z E F I R N I R P S A E T C W G O EA M P N I AN EL THERE WHATEVER THE FUTURE HOLDS T WON THE NOB P T O H D E A R F E O W Y H A E W @NationMediaGrp N K E E H N T NationMediaGroup Y N A I N T S E G DI N D N IO OT PIN LET DIVIDED O Nation Media Group is the leading media company with businesses in television networks, print, digital and radio. NMG uses its industry-leading operating scale and brands to create, package and deliver high-quality content on a multi-platform basis. As the largest independent media house in East and Central Africa, we attract and serve unparalleled audiences in Kenya, Uganda, Tanzania, and Rwanda. We are committed to generating and creating content that will inform, educate and entertain our consumers across the different platforms, keeping in mind the changing needs and trends in the industry. In our journey, nothing matters more than the integrity, transparency, and balance in journalism that we have publicly committed ourselves to. NMG journalism seeks to positively transform the society it serves, by influencing social, economic and political progress. Copyright © 2019 Nation Media Group All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the permission of the copyright holder. Nation Centre, Kimathi Street P.O. Box 49010-00100, GPO Nairobi, Kenya Telephone: +254 20 328 8000 www.nationmedia.com Browse, download or print our annual report at http://download.nation.news/2018AnnualReport.pdf View our 2018 results presentation at http://host.nationmedia.com/2018Results-InvestorBriefingPresentation.pdf NATION MEDIA GROUP ANNUAL REPORT (ii) AND FINANCIAL STATEMENTS 2018 Company Information Nation Media Group is the leading media company with businesses in television networks, print, digital and radio. NMG uses its industry-leading operating scale and brands to create, package and deliver high-quality content on a multi-platform basis. As the largest independent media house in East and Registered Office Afisi ilioandikishwa Nation Centre, Kimathi Street Central Africa, we attract and serve unparalleled audiences in Kenya, Uganda, Tanzania, and Rwanda. We P O Box 49010 00100, Nairobi are committed to generating and creating content that will inform, educate and entertain our consumers across the different platforms, keeping in mind the changing needs and trends in the industry. In our journey, nothing matters more than the integrity, transparency, and balance in journalism that we have publicly committed ourselves to. NMG journalism seeks to positively transform the society it serves, Advocates Wakili Hamilton Harrison & Mathews by influencing social, economic and political progress. Delta Suites Waiyaki Way, Nairobi Copyright © 2019 Nation Media Group All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or Auditors Wakaguzi wa Hesabu PricewaterhouseCoopers otherwise, without the permission of the copyright holder. PwC Tower,Waiyaki Way/ Chiromo Road Westlands, Nairobi Bankers Benki Standard Chartered Bank of Nation Centre, Kimathi Street Kenya Limited, Chiromo No. 48 Westlands Road, Nairobi Company Secretary Katibu James Kinyua Nation Centre, Kimathi Street P.O. Box 49010-00100, GPO Nairobi, Kenya P O Box 49010 00100, Nairobi Telephone: +254 20 328 8000 www.nationmedia.com Browse, download or print our annual report at http://download.nation.news/2018AnnualReport.pdf View our 2018 results presentation at http://host.nationmedia.com/2018Results-InvestorBriefingPresentation.pdf NATION MEDIA GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS 2018 (iii) True & Timeless 3 5 8 12 18 26 29 Corporate NMG Performance Chairman’s Taarifa ya Group Chief Ripoti ya Afisa Governance Corporate Values Highlights Statement Mwenyekiti Executive Officer’s Mkuu Mtendaji Statement Statement wa Shirika 35 42 43 109 THERE WHATEVER THE FUTURE HOLDS Sustainability Board of Board of Proxy Form Report Directors Directors Profile 47 50 53 71 72 108 Report of the Ripoti ya Directors’ Statements of Notes to the Principal Directors Wakurugenzi Remuneration Cash Flows financial Shareholders Wakuu Report statements 2. Brand Architecture LIBERTY - INTERIM CI GUIDELINES CONTENTS 58 60 61 66 67 68 70 2.10 Colour Palette Primary Secondary Tertiary Executive Statement of Independent Statements of Statements of Group Statement Company Team Directors’ Auditor’s Financial Position colour palette colour palette colour palette DEC. 12, 1964 Comprehensive of Changes in Statement of THERE WHEN KENYA Responsibilities Report Income Equity Changes Cin Equityonsistent colour application is vital to building the brand. In order GAINED SELF RULE THERE WHATEVER THE FUTURE HOLDS for the medium in which the communication will appear. That Friday night, the lone voice of Mzee Kenyatta crackled on radio across the colony. “We must gear ourselves to a fundamental belief in individual human rights as a basis of respect…beyond what a man is or what he does.” At midnight, Nation Centre the Union Jack went down, the Kenyan lag went up. Celebrations lasted days. Kimathi Street Nairobi, Kenya P.O Box 49010-00100 GPO Indigo Blue Light Blue Dark Yellow Light Purple Green Rust Dark Caramel And for 30 cents, history was framed in that great day’s copy of the Daily Nation. Telephone: +254 20 328 8000 Spot: Where cost is not prohibitive it is preferred that the 100c 80m 0y 65k 30c 5m 5y 5k 0c 37m 100y 0k 75c 100m 0y 6k 44c 0m 76y 36k 0c 90m 84y 32k 0c 59m 89y 20k www.nationmedia.com True & Timeless PMS 289 PMS 291 PMS 130 PMS 520 PMS 576 PMS 484 PMS 723 NationMediaGrp NationMediaGroup NationMediaGroup www.nationmedia.com # NMGAT60 PANTONE MATCHING SYSTEM® spot colour alternatives are 0r 22g 78b 166r 203g 219b 251r 171g 24b 96r 40g 137b 103r 144g 75b 174r 44g 37b 202r 110g 42b used. PANTONE® is the global standard colour matching system. #00164E #A6CBDB #FBAB18 #602889 #67904B #AE2C25 #CA6E2A luminosity not achievable with CMYK process inks. CMYK Print: to be used for processes where spot colour is restricted, for Black Aqua Light Yellow Lavender Light Green Fuchia Orange example, magazines. 0c 0m 0y 100k 50c 5m 15y 5k 0c 15m 90y 0k 22c 44m 0y 0k 35c 0m 65y 0k 0c 100m 65y 18k 0c 60m 91y 0k PMS Black PMS 3105 PMS 129 PMS 522 PMS 577 PMS 187 PMS 716 RGB: The RGB (monitor colour) equivalents are only for electronic 0r 0g 0b 116r 187g 201b 255r 213g 48b 195r 152g 198b 173r 213g 129b 200r 15g 63b 245r 130g 49b #000000 #74BBC9 #FFD530 #C398C6 #ADD581 #C80F3F #F58231 use, for example, in television and audio-visual presentations. Hexadecimal: The hexadecimal (HTML colour) equivalents must be used for websites. Colour usage White Blue Gray Light Caramel Dark Purple Dark Green Earth Brown 0c 0m 0y 0k 40c 5m 0y 50k 0c 43m 100y 13k 0c 73m 100y 39k 46c 82m 0y 55k 0c 98m 98y 60k 0c 70m 95y 50k We always use more of our Liberty blue, less of our secondary PMS White PMS 5415 PMS 131 PMS 519 PMS 575 PMS 1815 PMS 725 255r 255g 255b 84r 122g 145b 220r 142g 24b 72r 15g 99b 75r 112g 49b 122r 2g 0b 142r 62g 10b #FFFFFF #547A91 #DC8E18 #480F63 #4B7031 #7A0200 #8E3E0A Applying colour correctly ensures that our Liberty blue is always the most visible and dominant colour. Incorrect use of our secondary and tertiary colours could dilute the association of our blue to Liberty. These colours are never associated Dark Blue Gray Dark Gray Medium Gray Light Gray 40c 5m 0y 85k 0c 0m 0y 73k 0c 0m 0y 50k 0c 0m 0y 23k PMS 7545 PMS Cool Gray 10 PMS Cool Gray 7 PMS 420 36r 61g 76b 102r 102g 102b 153r 153g 153b 204r 204g 204b #243D4C #666666 #999999 #CCCCCC True & Timeless 3 5 8 12 18 26 29 Corporate NMG Performance Chairman’s Taarifa ya Group Chief Ripoti ya Afisa Governance Corporate Values Highlights Statement Mwenyekiti Executive Officer’s Mkuu Mtendaji Statement Statement wa Shirika 35 42 43 109 THERE WHATEVER THE FUTURE HOLDS Sustainability Board of Board of Proxy Form Report Directors Directors Profile 47 50 53 71 72 108 Report of the Ripoti ya Directors’ Statements of Notes to the Principal Directors Wakurugenzi Remuneration Cash Flows financial Shareholders Wakuu Report statements 2. Brand Architecture LIBERTY - INTERIM CI GUIDELINES CONTENTS 58 60 61 66 67 68 70 2.10 Colour Palette Primary Secondary Tertiary Executive Statement of Independent Statements of Statements of Group Statement Company Team Directors’ Auditor’s Financial Position colour palette colour palette colour palette DEC.