Investor Presentation December 2009
HTML addresses a large & growing value pool through its portfolio of strong businesses � HTML addresses a large value pool that is set to grow � Growing population & literacy will continue to foster print in India � Consuming class is expected to grow manifold in next few years as the g p g y fundamentals of Indian economy remains strong � Advertising is expected to increase across mediums with the growth in consumption; thereby a strong outlook for the overall Media industry � HTML is an attractive proposition to invest � The only company with a large English & Hindi footprint ; having a strong brand recall across businesses � Sound financial model: strong financial performance over last 5 years S d fi i l d l t fi i l f l t 5 � Diverse and professional management team � Partner of choice for global players � HTML has a strong portfolio of businesses that are highly successful and few new ventures that are in the growth phase � Hindustan Times – English daily � Hindustan – Hindi daily Hindustan Hindi daily � Mint – Business paper � Fever 104 - Radio � Digital – Portfolio of websites & mobile marketing Digital Portfolio of ebsites & mobile marketing � HT Burda Media Ltd – entry in high-end publishing space 2
Demographics in India provide a strong opportunity for Print Media to grow Urban Rural Total Population 272 590 862 (millions) Literacy % Literacy% 83% 62% 68% expected to go up up Readership (% 42% 21% 29% of literates) Current penetration levels are low amongst the literates Source: IRS 2009 R2; Age group 12+ , Individuals data 3
Ad intensity is poised to increase as consumption grows India – Adex/ consumption vs. consumption per capita India – Adex/ consumption vs. consumption per capita 0 7% 0 7% 0.7% 0.7% • With increasing • With increasing Consumption growth Consumption growth consumption, India should consumption, India should 0.6% 0.6% witness an increase in witness an increase in outstripping ADEX outstripping ADEX Adex as witnessed in other Adex as witnessed in other g growth growth g 0.5% 0 5% 0 5% 0.5% developing countries developing countries 1998-99 1998-99 Pessimistic outlook Pessimistic outlook 0.4% 0.4% • India has seen very • India has seen very - Asian crisis - Asian crisis modest increases in ad modest increases in ad - Pokharan - Pokharan intensity over the past 6 intensity over the past 6 intensity over the past 6 intensity over the past 6 0.3% 0 3% 0.3% 0 3% Relaxation of Relaxation of Relaxation of Relaxation of years after a period of rapid years after a period of rapid supply constraints supply constraints increase increase 0.2% 0.2% • India’s low volatility • India’s low volatility 0 1% 0.1% 0.1% 0 1% growth should support a growth should support a growth should support a growth should support a clear rising trend in Adex clear rising trend in Adex 0.0% 0.0% 200 200 250 250 300 300 350 350 400 400 450 450 500 500 USD USD *Ad intensity is the ratio of ad expenditure to private consumption *Ad intensity is the ratio of ad expenditure to private consumption Source: Global Insight; WMM; Euromonitor; McKinsey analysis Source: Global Insight; WMM; Euromonitor; McKinsey analysis 4
India is close to the inflexion point; Russia and China has shown a similar trend Russia: Rapid increase in ADEX with Russia: Rapid increase in ADEX with China: Strong ramp up in ADEX China: Strong ramp up in ADEX economic recovery post 1999 economic recovery post 1999 economic recovery post 1999 economic recovery post 1999 growth with income level changes growth with income level changes growth with income level changes growth with income level changes 1999-2006 DATA 1999-2006 DATA 1983-2006 DATA 1983-2006 DATA 1.20% 1.20% 1.80% 1.80% tion tion tion tion Trajectory changes Trajectory changes vate consumpt vate consumpt vate consumpt vate consumpt between US$600 and 700 between US$600 and 700 1.60% 1.60% 1.00% 1.00% 1.40% 1.40% 0.80% 0.80% 1.20% 1.20% Rapid step up between Rapid step up between 1.00% 1.00% US$600-1200 US$600-1200 $ $ 0.60% 0.60% 0.60% 0.60% ex as % of priv ex as % of priv ex as % of priv ex as % of priv 0.80% 0.80% 0.40% 0.40% 0.60% 0.60% India is 0.40% 0.40% here 0.20% 0.20% 0.20% 0.20% Ade Ade Ade Ade 0.00% 0.00% 0.00% 0.00% 500 500 1000 1000 1500 1500 2000 2000 2500 2500 3000 3000 3500 3500 0 0 200 200 400 400 600 600 800 800 Per capita consumption Per capita consumption Per capita consumption Per capita consumption US$ US$ US$ US$ • Income levels dropped drastically in 1998 post crisis • Income levels dropped drastically in 1998 post crisis • Rapid rise in ADEX/ consumption ratio happened • Rapid rise in ADEX/ consumption ratio happened between US$600 and 700 when the ratio went up between US$600 and 700 when the ratio went up • Robust income growth post ’99 has seen rapid ramp up • Robust income growth post ’99 has seen rapid ramp up from 0.6% to 1.0% from 0.6% to 1.0% in ADEX as consumption soared in ADEX as consumption soared as co su as co su p o p o soa ed soa ed 5
Advertisement pie is set to increase manifold across Segments where mediums HT is present CY 2008 Ad revenues CY 2011 Ad revenues Per cent Per cent Total revenue ~Rs. 222 bn T l R 222 b T Total revenue ~ Rs. 297 bn l R 297 b Internet Internet Advertising Advertising New media to 5% 3% Radio Outdoor increase shares increase shares Radio Radio Outdoor Outdoor 4% 7% 4% 7% Television Television Television Television 38% 37% Print to grow from f Rs. 108 bn Print Print to Rs. 137 49% 46% bn in 2011 * Based on estimates of Group M, KPMG – FICCI 2009, Zenith optomedia & Pitch Madison 6
HTML addresses a large & growing value pool through its portfolio of strong businesses � HTML addresses a large value pool that is set to grow � Growing population & literacy will continue to foster print in India � Consuming class is expected to grow manifold in next few years as the g p g y fundamentals of Indian economy remains strong � Advertising is expected to increase across mediums with the growth in consumption; thereby a strong outlook for the overall Media industry � HTML is an attractive proposition to invest � The only company with a large English & Hindi footprint ; having a strong brand recall across businesses � Sound financial model: strong financial performance over last 5 years S d fi i l d l t fi i l f l t 5 � Diverse and professional management team � Partner of choice for global players � HTML has a strong portfolio of businesses that are highly successful and few new ventures that are in the growth phase � Hindustan Times – English daily � Hindustan – Hindi daily Hindustan Hindi daily � Mint – Business paper � Fever 104 - Radio � Digital – Portfolio of websites & mobile marketing Digital Portfolio of ebsites & mobile marketing � HT Burda Media Ltd – entry in high-end publishing space 7
HTML has transformed itself to a diversified multimedia company Today HTML is established Transformation journey in following domains 2007 2007 English daily � Print Launched � Hindi daily � Mint Business daily � Magazines � 2006 2006 Entry into � Job portal � Digital radio Mobile � 2008 1986 advertising Launched job Launched job � � M lti l Multiple � News � portal editions websites shine.com launched Social � Launched � Networking 1924 p prepress p Inaugurated � services for 2003 by Fever 104 � overseas Radio Mahatma Reorganised magazines � 4 radio � Gandhi as HT Media stations Ltd Ltd. Subsequently � Corporate � listed on BSE Events events Entertainment � 1927 events events Incorporated as company � 8
Across various platforms, HTML offers compelling proposition to advertisers Total Readership of 34m & Average Issue Readership of ~13 m across print publications with attractive CPT 13 i t bli ti ith tt ti CPT 15,361 , 1.39 1 39 1.27 11,491 1.16 9,296 Reach 7,833 CPT 4,312 0.55 3,029 2,681 0.47 0.42 0 31 0.31 HT/HH TOI/NBT HT TOI HH DJ AU Source: AIR data in ‘000 from IRS 2009 R2; Card rates * Comparison data for Indo Gangetic belt i.e. Delhi NCR, Chd, UP, Uttarakhand, Bihar and Jharkhand 9 m listeners of Fever 7.5 m unique netizens across Hindustantimes.com, Shine.com, Desimartini.com Livemint com livehindustan com Livemint.com, livehindustan.com 9
10 CAGR - 62% Historical financial performance Rs. in millions, * FY 04 for 9 months CAGR - 26% CAGR - 26%
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