INVESTOR BRIEFING F18 HY RESULTS 17 TH AUGUST 2018 @Nation Media Group www.nationmedia.com @nationmediaGrp
F18 H1 Highlights 2016 HIGHLIGHTS HALF YEAR DIVISIONAL UPDATES F18 H1 Divisional Results RESULTS BRIEFING 2016 GROUP RESULTS F18 H1 Group Results Q & A Q & A
OU OUR R FOO OOTP TPRI RINT NT
Our Values We are a team Continuous Consumer Focus Improvement & Innovation Integrity & Trust Drive for Performance Inspiring leadership; Team work; Continuous improvement 4
Bus usiness iness Obj bjectiv ctive New revenue Protect & grow streams current business Consumer Living our values Innovation Pursue value benefits anchored on driving growth through new 5 revenue sources and innovation
We are clear Pursue value benefits anchored on driving growth through new revenue on our journey sources and innovation Innovate to continuously meet consumer demands Develop new products to maintain competitive edge Growing the top line Grow current revenues Generating new revenue streams Strengthen performance of legacy brands Investing in the right talent and capabilities Manage costs to constantly invest in growth 6
Dri riving ving Retu eturn rn on on Investment estment Reach Partnerships/ Innovations Power Brand Relevance Alliances Operational excellence Impact 7
FY18 H1 HIGHLIGHTS DIVISIONAL RESULTS FY18 H1 GROUP RESULTS Q & A
2018 018 Key y Reven enue ue Dr Driv iver ers New revenue streams Protect & grow current business Advertising Music Circulation Gaming Digital Events (SMS, E-paper, E-commerce) Contract printing Education 9
July 33.6 9.25 30 7.9 20.2k 16.9k 24.3 22.1 10
Dig igit ital al Reven enue ue Trend: end: 20 2013 13-2018 2018 33.6 9.25 30 7.9 20.2k 16.9k 24.3 2013 2014 2015 2016 2017 2018 22.1 11
Record Label Record Label • Lit Music is an exciting new record label that brings together the most talented and diverse artists • A platform to recruit, nurture, develop, manage and promote music talent • Engaged a number of studios, production houses & other 3rd parties to provide the most comprehensive solutions for our artists to build bigger and more dynamic careers. 12
Music offering Premiered May 3 RD 2018 Every Thursday on NTV at 10pm Re-run on Sunday On Nation FM every Friday and Saturday at 7pm. Available on lit360.Africa Top trending show every Thursday 13
Way Forward TV Offering Events and Event Merchandising management Partnerships Music and video production Artists and repertoire Online Distribution 14 Channels
Provider of the most comprehensive event and Ecommerce enabled experiential platform lifestyle information in Kenya. (Online & Print) for movies, events & retailers Audience growth: 87,000 in Jan 2017 to 155,000 in 2018 cinema presence on the ticketing platform 16.9k Doubled circulation since its acquisition 24.3 Launching UgandaBuzz & TanzaniaBuzz KenyaBuzz.c .com 15
Event ents 33.6 9.25 30 7.9 Farm Clinic 20.2k 16.9k 22.1 Nation Leadership Forum myNetwork career fair 16
Ed Educ ucation tion 33.6 9.25 30 7.9 20.2k 16.9k Printing of Books Newspapers in (Supplementary reading Education Programme JuniorSpot material) Objective is to increase literacy in line with our mission 17
Oth Other er Gr Growth owth Area eas Kenya Buzz Online Online TV Directory & Ticketing Online Lifestyle Platform Focus on growing new revenue streams for sustainability 18
Wor orld ld Cu Cup p Co Cover erage FIFA World Cup Matches aired in 32 partnership with Kwesé Free Sports No. of viewers on NTV on the FIFA World Cup opening match Growth of NTV Viewership during the world cup period NTV is currently positioned as No. 2 TV station 19
NTV V Prog ogramming amming 20 Strong news & entertainment content to drive growth of audiences
New Look Ne w Look NT NTV 21
Government Go ernment De Debt bt 33.6 30 7.9 20.2k Outstanding GAA debt: Kshs 856 million; 85% overdue (Kshs 726m) 24.3 Discussions with government ongoing; credit suspended 22.1 Seeking alternative sources of revenue 22
NT NTV V Clo Closur sure e 30 7.9 20.2k 24.3 22.1 NTV Closure at the beginning of the year due to political unrest 23
Co Corpor porate te So Social ial Resp sponsibi onsibility lity 30 9.25 7.9 Talitha Kum Children’s Home - Mercy Care Children’s Home 20.2k Nyahururu , Laikipia County - Ndabibi, Naivasha County 16.9k 24.3 22.1 Mama Fatuma Goodwill Children’ Shika Adabu Primary School Home - Nairobi County - Likoni Sub-County 24
Excel cellence lence Awar ards ds Media Council of Kenya Annual Journalism Excellence Awards (Various categories) Energy Management Awards - Best New Entrant Award (Small and Medium Consumer) Communications Authority KUZA Awards - (3 Awards in various categories) Merck Foundation’s More East African Business than a Mother Recognition Council – East Africa’s Best Awards Media Company 25
2018 018 Gr Group oup Hi Highli ghlights ghts Growth of Kenya Buzz Convergence Strategic Growing the digital Roll out of optimisation partnerships JuniorSpot opportunity Lit 360 Music Debt mgt across New NTV NTV Closure MCL gov’t agencies programming FIFA World Cup shareholding 26
FY18 H1 HIGHLIGHTS FY18 H1 DIVISIONAL RESULTS FY18 H1 GROUP RESULTS Q & A
Print Pr int DIVISION NND TEA BD MPL MCL REVENUE 33.6 9.25 30 9% 0% 0% 3% 12% Revenues 7.9 DIRECT 8% 42% 7% 7% 24% COSTS 20.2k 16.9k Direct Costs OPERATING 13% >100% 10% 27% 48% RESULTS 24.3 22.1 Operating Results 28
Tel elevision vision 33.6 9.25 30 7.9 1% 10% Revenues 20.2k 21% 16.9k 42% Direct Costs >100% 24.3 32% Operating Results 29
Di Digit gital al 6% 33.6 9.25 30 Revenues 7.9 27% 20.2k 16.9k Direct Costs 20% Operating Results 30
FY18 H1 HIGHLIGHTS 33.6 9.25 30 FY18 H1 DIVISIONAL RESULTS 7.9 FY18 H1 GROUP RESULTS 20.2k 16.9k Q & A 24.3 22.1 31
Turno urnover er Tren end d (K (Ksh shs s m) m) 6.7% 33.6 9.25 30 7.9 20.2k 16.9k 24.3 22.1 2012 2013 2014 2015 2016 2017 2018 32
Co Cost st of of Sa Sale les s (Ks Kshs hs m) 11% 33.6 9.25 30 7.9 20.2k 16.9k 24.3 2012 2013 2014 2015 2016 2017 2018 22.1 33
Tot otal al Co Cost sts s (Ks Kshs hs m) 33.6 9.25 30 1.4% 7.9 20.2k 16.9k 24.3 2012 2013 2014 2015 2016 2017 2018 22.1 34
Co Consoli olida date ted d St State tement ent of Co Comprehensi ehensive e Income come ( ( Ks Kshs m) Jun-18 Jun-17 % Change 33.6 9.25 Turnover 4,923.1 5,274.2 (6.7) 30 Profit before income tax and exceptional items 1,103.1 1,190.9 (7.4) 7.9 Exceptional items: Provision for overdue debts (291.6) (17.5) Revaluation of financial assets (49.7) (2.2) 20.2k 16.9k Income tax expense (232.6) (351.4) Profit after income tax 529.2 819.8 (35.5) Other comprehensive income (74.2) 5.8 24.3 Total comprehensive income 455.0 825.6 (44.9) 22.1 35
St State temen ent t of Financia ancial l Positi tion on ( ( Kshs m) 30-Jun-18 30-Dec-17 Capital and reserves Share capital 471.4 471.4 Other reserves (142.0) (72.5) 33.6 9.25 Retained earnings 6,545.30 6,302.30 30 Proposed dividends 1,696.90 1,414.10 8,571.60 8,115.30 7.9 Non controlling interest 49.7 51 Total equity & Non-current liabilities 8,621.30 8,166.30 Non-current liabilities 25 25.9 8,646.30 8,192.20 20.2k 16.9k Assets Non-current assets 4,892.10 5,009.20 Working capital Current assets 7,093.60 6,311.10 Current liabilities 3,339.40 3,128.10 24.3 Net working capital 3,754.20 3,183.00 22.1 Total Assets 8,646.30 8,192.20 36
Co Condens densed ed Ca Cash Flow w St State temen ent t (K (Kshs m) m) 6 months ended 6 months ended June 2018 June 2017 33.6 9.25 Cash generated from operations 1,231.5 2,282.6 30 Tax paid (411.4) (799.2) Net cash from operating activities 820.1 1,483.4 7.9 Net cash used in investing activities (36.5) 147.0 Net cash from financing activities - - Increase in cash and cash equivalents 20.2k 783.6 1,630.4 16.9k At start of period 1,692.6 1,344.7 Exchange gains/(losses) on cash and cash equivalents (30.4) 0.1 24.3 At end of period 2,445.8 2,975.2 22.1 37
Ea Earning nings s Per Sh Share e (Ks Kshs) 7 6 33.6 9.25 30 5 7.9 45% 4 3 20.2k 16.9k 2 1 24.3 0 2011 2012 2013 2014 2015 2016 2017 2018 22.1 38
Di Dividends vidends 33.6 9.25 30 7.9 20.2k 16.9k 24.3 22.1 39
In Interim erim Di Divi vide dend nd Dividends per Share (Kshs) 3 2.50 2.50 2.50 2.50 2.50 2.50 3 33.6 9.25 30 2 7.9 1.50 1.50 2 20.2k 1 16.9k 1 0 24.3 2011 2012 2013 2014 2015 2016 2017 2018 22.1 40
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