Forestry ConferenceForestry Conference May 2012

John CruickshankJohn CruickshankToronto Star Publisher

SMG President

SMG is a portfolio of products

Digital Toronto  Star Ventures

22Confidential

Star Content Studios

We are geographically diversified

We have built a growing presence from coast‐to‐coast

Halifax

Edmonton

Calgary

Vancouver

Winnipeg

Ottawa

Saskatoon

ReginaVictoria

We continue to diversify our revenue base

Toronto Star

The Grid

Insurance Hotline

Metro

London GTAWindsor

KitchenerHamilton

revenue baseSing Tao

Canadian Immigrant

thestar.com

toronto.com

3Confidential

In addition to SMG, another Torstar entity, Metroland Media Group, adds to the footprint

4Confidential

The SMG strategy has us moving from a print‐only base, dominated by the Toronto Star, into a portfolio of businesses with news and journalism at its heart.  While online is playing a growing role, we are developing new print opportunities more rapidly 

CONTINUUM THEORY

PHASE 1:Print‐to‐News Management

PHASE 3:Online Led

PHASE 2:Portfolio Approach

5Confidential

The Toronto Star remains the core of SMG and our commitment to the Atkinson Principles drives exclusive and powerful stories that affect the citizens of Toronto

6Confidential

Print remains stable – our readership grew 4% in the past year to over 1 million readers.  Metro is number 2 in Toronto

1,200,000

952,800 937,800979,300 969,300 966,0001,000,000

474,400434 600

495,900513,400

485,900

600,000

800,000

436,300 469,100

372,300

424,100409,300

389,800382,700413,900

406,500

223 200

449,700

434,600,

348,500296,600

265,000289,500

352,500

200,000

400,000

223,200193,900 176,700167,800

211,600

02007 Full 2008 Full 2009 Full 2010 Full Fa10/Sp11

7Confidential

STAR SUN GLOBE POST METRO 24HRS

Source: NADbank Fall 2010/Spring 2011 Study

Base: Toronto CMA, Adults 18+

We are hanging new opt‐in products off the Toronto Star and they are contributing nicely to SMG earnings

FebruaryFebruaryFebruary February20121%

45,000

February201213%

83,000

February201236%

260,000

8Confidential

We believe in print – new print products are emerging

9Confidential

And we are rapidly launching new print editions of Canada’s largest newspaper brand (4 cities in the past 2 years). Metro continues to grow

Toronto2000

Ottawa2005

Vancouver2005

Edmonton2007

Calgary2007

Halifax2008

London Winnipeg Regina2012

Saskatoon2012

10Confidential

Metro Toronto, Ottawa, Vancouver, Calgary, London, Winnipeg, Edmonton, Regina and Saskatoon are published by a corporation owned by Torstar and Metro International S.A.; Metro Halifax is published by a corporation owned by Torstar, Transcontinental Inc., and Metro International S.A.

2008 2011 2012 2012

We have recognized that unique ad executions in print are essential to our long‐term successg

Actual Star content set the stage for launch of much‐awaited TV biopic. 

Great marriage of message and media.

11Confidential

Rogers (Gift) Wrap edition was well received by both the clients and readers

Partnered with Rogers on a unique ad execution coupled with external promotional support to keep the advertising client top of mind and on top of the paper

Radio Spot

advertising client top of mind and on top of the paper during the busy gift giving season.

12Confidential

Metro has been especially creative with unique marketing opportunities

13Confidential

We have invested in a solutions team that builds offerings

Customer Focus

Integrated Marketing Programs

Print

Digital

Content

Product Development

Social Media

14Confidential

Social Media

Gaming/Mobile

What newspaper publishers need from producers

Stability with Newsprint Supply

‐ Pricing that allows publishers to manage, sustain and grow our  business

‐ Availability and choice for the end users

Assist Publishers in promoting Environmental Sustainability

‐ Supply recycle content newsprint

‐ Expand availability  of “certified” products

C i d k i h h B l F A‐ Continue to support and work with the Boreal Forest Agreement

‐ Marketing efforts to educate the public on sustainability programs and initiatives

Development for premium grade stocks

‐ Improve reproduction quality for readers and advertisers

Price point need to be marketable

15Confidential

‐ Price point need to be marketable

‐ Products need to work with our current processes and equipment