Jagran Prakashan Limited · NSE:JAGRAN
Jagran Prakashan — Investor Presentation (June 2014)
36 slides from Jagran Prakashan's investor presentation, June 2014
Slide 1: Jagran Prakashan Limited (JPL) Investor Presentation
Jagran Prakashan Limited (JPL) Investor Presentation June 2014
Slide 2: Safe Harbor
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 secu
Slide 3: JPL: India's Media Conglomerate
JPL: India’s Media Conglomerate Hindi Publications Other Publications Dainik Jagran: Mid Day : Flagship Brand of the Group, Only Afternoon Paper of Mumbai No. 1 Daily of the Country with Highest Readership Others : Nai Dunia /Nav Dunia: Punjabi Jagran, Midday Gujarati, I-Next, Inquilab, City Plus, J
Slide 4: JPL: The Largest Read Print Media Group of India
JPL… The Largest Read Print Media Group of India 68 mn Readers 121 Editions, 15 States 12 Publications, 5 Languages Dainik Jagran: India’s #1 Daily Hindi Publications (Dainik Jagran I-Next: India’s only Bilingual Nai Dunia/Nav Dunia) Compact Daily Other Publications Mid-day: India’s #1 Afternoon Dai
Slide 5: Growing across all parameters
… Growing across all parameters 2008 2014 Publications 5 12 States 12 15 Language 2 5 Readership 56 mn 68mn , Circulation (Daily) 2.8 mn 5.3 mn Source: IRS 2012 Q4 Circulation of Weekly, Fortnightly & Monthly Publications adjusted for Daily 5
Slide 6: Print Media – Offering large Opportunity
Print Media – Offering large Opportunity 6
Slide 7: Print Media Growing Consistently in India
Print Media Growing Consistently in India… 2009-13 Revenue CAGR: 8.4% Low Print Media 244 Advertising : 10.3% Penetration 225 Circulation : 5.7% 208 Rising Literacy 193 81 175 75 More local than other 69 media platforms like 67 Television 65 “Door to Door” 163 Distribution Network 150 139 12
Slide 8: Hindi Print Advertising expected to be largest in 2018
Hindi Print Advertising expected to be largest in 2018 2009 2013 2018 OIL* OIL* OIL* 27% 31% 34% Hindi English Hindi Hindi English English 28% 45% 31% 38% 36% 30% Hindi Advertising to grow at ~14% CAGR – Share of Hindi Print expected to increase from 31% in 2013 to 36% in 2018 – Advertisers expect
Slide 9: JPL: Hindi Publications
JPL : Hindi Publications 9
Slide 10: Dainik Jagran: The Group's Flagship Brand
Dainik Jagran… The Group’s Flagship Brand India’s largest read daily Newspaper 56 mn Readers 38 Editions, 11 States Consistent Growth in circulation Quality of readership Most credible and trusted newspaper in # 1 with 11.7 mn readers in NCCS A India* Source: IRS 2012 Q4 * Source: Globescan survey c
Slide 11: Nai Dunia - expanding geographical reach
Nai Dunia - expanding geographical reach Strong local Hindi Daily in Madhya Pradesh & Chhattisgarh Advertising Revenue Circulation – Acquired in 2012 (Rs. Crores)^ (in 000)^ Madhya Pradesh & Chhattisgarh offers huge growth potential FY14 98 Mar-14 607 – Literacy rate of 62% FY13 75 Mar-13 505 –
Slide 12: Hindi Publications Consistently maintaining leadership over a decade
JPL Hindi Publications Consistently maintaining leadership over a decade Top 3 Dailies in India JPL Hindi Publication Readership - By Readership* By States* JPL Hindi Publications 18% 62 mn readers 5% Peer 1 51% 11% 39 mn readers 7% 2% Peer 2 3% 3% 35 mn readers UP Bihar Jharkhand MP & CG Haryana &
Slide 13: JPL Hindi Publications covers nearly half of Indian Population
JPL Hindi Publications..covers nearly half of Indian Population Population Literate Population Consumer Spend Non- Non- Non- Hindi Hindi Hindi States States States 43% 46% 50% Raj. Raj. Raj. JPL 6% JPL 5% JPL 6% Hindi Hindi Hindi WB WB WB States States States 7% 8% 7% 44% 41% 37% JPL Hindi States
Slide 14: Strong Presence in Tier II & III cities
JPL Hindi Publications’ Strong Presence in Tier II & III cities… Surge in purchasing power of Tier II & III JPL Hindi Publication Presence in Cities 32 out of 62 Tier II Cities of India – Changing demographic dynamics – Consumption of consumer durables, automobiles and financial products growing O
Slide 15: JPL Hindi Publication: Low internet penetration
JPL Hindi Publication….Low internet penetration Total Population # Internet Subscribers India 1,211 210 17.3 % Uttar Pradesh 200 21* 10.5 % Bihar 104 10^ 9.6 % MP & CG 98 11 11.2 % 33% of Total 20% of Internet India’s Subscriber Population Base … doesn’t have visible impact on [in Million] Hindi New
Slide 16: Strong leadership in Uttar Pradesh
Strong leadership in Uttar Pradesh 2nd Largest State in GDP terms 8.1 % contribution in India’s GDP Home to 20 Crs People 16.5% of India’s Population 11.4 Crs literate Population 49% of which not reading Newspaper USD 54 bn Annual Consumer Spend 12% of India Large no. of Tier II cities Target market
Slide 17: Uttar Pradesh: Highest Consumer Spend
Uttar Pradesh… Highest Consumer Spend Total Consumer Spend in Hindi States USD 189 billion in 2011-12 Consumption in Hindi States is 43% Total Consumption As % to All India States (USD Billion) Consumption of total consumption in India Uttar Pradesh 54 12% Bihar 24 6% JPL States cover 87% of Con
Slide 18: JPL: Other Publications & Businesses
JPL : Other Publications & Businesses 18
Slide 19: Mid Day provides an entry in to three languages
Mid Day provides an entry in to three languages Mid-Day English Niche Afternoon Daily targeted as Focus on improving performance leisure read – Discontinue “Ad for Equity” deals 13 Lacs readers – Focus on improving Per copy realizations Re-launched to strengthen the youth focused strategy /
Slide 20: Other Publications
Other Publications Punjabi Jagran City Plus With a huge local language India’s No.1 Community Paper acceptance, Punjabi Jagran circulated across Mumbai, completes the bouquet in Delhi, Hyderabad, Banglore & Punjab Pune with 43 editions adding value to brand Jagran I-Next India’s first bilingua
Slide 21: Digital Portfolio offers huge growth potential
Digital Portfolio offers huge growth potential 7.4 mn unique visits 103 mn page views per month jagran.com - # 2 Hindi News Site jagranjosh.com - # 1 in Education Onlymyhealth.com - # 4 in Health Category # 39 Network Rank in the Country Content Sharing Leveraging Print Media leadership Readiness fo
Slide 22: Other Businesses
Other Businesses Activation Business OOH Business Core focus areas End to end OOH solutions – Brand Activations – Planning – Rural Marketing – Creative adaptations – Activation Auditing & Consulting – Data on traffic count – Retail & ISP – Post campaign results 22
Slide 23: Consolidated Financial Highlights
Consolidated Financial Highlights 23
Slide 24: Consistent Growth in Revenue: Higher than Industry
Consistent Growth in Revenue : Higher than Industry FY09-14 Revenue CAGR: 15.6% Advertising: 16.5% ( Industry : 10.3% ) Circulation: 12.8% ( Industry : 5.7% ) 1,703 1,522 158 1,355 1,221 154 359 152 315 942 129 824 265 238 88 75 216 197 1,186 1,053 854 938 552 638 FY09 FY10 FY11 FY12 FY13 FY14 Adver
Slide 25: Consolidated Annual Profitability Statement
Consolidated Annual Profitability Statement FY 13 : Consolidation effect of Rs. in Crores FY14 FY13 YoY Suvi Info (Naidunia) acquisition: Revenues 1,703 1,522 12% – Other Income of Rs. 95 Crs. Advertisement Revenue 1,186 1,053 & Rs. 3 Crs for Profit arising Circulation Revenue 359 315 on intra gro
Slide 26: EBITDA
EBITDA 19% 30% 29% 23% 19% 22% 382 357 317 296 282 157 FY09 FY10 FY11 FY12 FY13 FY14 [Rs. Crores] 26
Slide 27: Operating Margin break-up
Operating Margin break-up Publications (Rs. Crs) FY 12 FY 13 FY 14 Continued Operating Losses in Other Dainik Jagran Publications : Operating Revenue 1,068.41 1,127.59 1,258.0 – Mainly due to Continued Investments Operating Profit 320.69 345.64 413.4 in NaiDunia as a part of strategy to increase t
Slide 28: Net Profit
Net Profit FY 13 : Consolidation effect of Suvi Info (Naidunia) acquisition: – Other Income of Rs. 95 Crs. 11% 18% 17% 13% 17% 13% & Rs. 3 Crs for Profit arising on intra group elimination 255 of debentures & shares respectively 226 – Depreciation & amortization 208 of Rs. 50 Crs. for Goodwill 178
Slide 29: Adjusted PBT & PAT
Adjusted PBT & PAT FY 2014 FY 2013 Growth Profit Before Tax 305.7 255.2 19.8% Add Forex loss / (Gain) 16.2 9.5 Less Exceptional items 25.8 45.0 Adjusted PBT 296.1 219.7 34.8% Less Tax @ 26% (Effective tax rate for the year) 77.0 57.1 Adjusted PAT 219.1 162.5 34.8% 29
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. in Crores March-14 March-13 Rs. in Crores March-14 March-13 Shareholder’s Fund 962 932 Non-current assets 1,095 1,124 Share capital 62 63 Fixed assets 672 677 Reserves & Surplus 899 869 Goodwill on consolidation 232 232 Minority Interest 1 1 Non-current investment 128
Slide 31: Reduction in Net Debt Position
Reduction in Net Debt Position Rs. Crs. Mar ’13 Mar’14 Net Debt - Equity Cash & Bank Balance 52.25 32.51 Investments * 192.29 325.11 722 681 0.35 0.18 Gross Cash Balance 244.54 357.62 Borrowings 484.0 489.6 Net Debt 239.4 132.0 * Investments includes Investment in Mutual Fund and ICDs - Net Debt inc
Slide 32: Improvement in RoCE
Improvement in RoCE Rs. Crs. Mar ’13 Mar’14 RoCE Adjusted Profit Before Tax 220 296 39% Add: Interest 31 35 27% EBIT 251 331 Capital Employed 920 854 Networth* 681 722 Net Borrowings 239 132 RoCE 27% 39% FY 2013 FY 2014 * Networth excluding intangible assets and Goodwill 32
Slide 33: Consistently Generating High Return on Equity
Consistently Generating High Return on Equity 27% 23% 24% 30% 29% 16% 932 962 702 752 560 613 FY09 FY10 FY11 FY12 FY13 FY14 Networth RoE [Rs. Crores] 33
Slide 34: Cash flow Highlights
Cash flow Highlights Rs. Crs. FY14 FY13 A Net Surplus/(Deficit) Generated from Operations 330.5 201.80 B Surplus / (Deficit ) from Investing Activities -169.8 -163.9 B1 Net CAPEX -49.72 -96.11 B2 Other Investing Activities -120.08 -67.79 C Surplus / (Deficit) from Financing Activities -188.4 -31.4 C
Slide 35: High Profit Sharing with Shareholders
High Profit Sharing with Shareholders 60% 53% 62% 49%* 56% ** 7.7 7.2 6.6 5.8 5.6 3.8 4.0 3.5 3.5 3.5 FY10 FY11 FY12 FY13 FY14 Payout DPS EPS * Including Buyback of Rs. 47.5 crores ** Includes Proposed Dividend of Rs. 3 per equity share 35
Slide 36: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Jagran Prakashan Ltd. Strategic Growth Advisors Pvt. Ltd. Mr. Amit Jaiswal Mr. Gaurang Vasani / Mr. Jigar Kavaiya [email protected] [email protected] / [email protected] www.jplcorp.in www.sgapl.net 36