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Growth Strategies in theAsian Region

FIPP Seoul Conference, April 2002

Presented by John Alexander CEO of PBL Media and ACP Publishing

Growth Strategies in theAsian Region

FIPP Seoul Conference, April 2002

Presented by John Alexander CEO of PBL Media and ACP Publishing

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Contents

1. Overview of PBL

2. ACP and its competitive position in the Australian magazine sector

3. ACP and its Asian operations

4. Expansion opportunities in Asia for ACP

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1. Overview of PBL

Crownmerger &ecorpfloat

1999

25% ofFoxtelacquired

1998

PBLestablished(Merger ofACP &Nine Network)

1994

Control of Nine Networkregained

1990

Nine Networksold to Bond Media

1987

News-paperbusinesssold

1972

Nine Network

established

1960

Sydney Broadcasting Licenseacquired

1956

Our History to Date:

ACPestablished

1933

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Business Market Position Market Share

Nine Network No. 1 40% Advertising MarketACP No. 1 44% CirculationCrown No. 1 75% Australian VIP marketecorp No. 1 77% PenetrationFoxtel No. 1 70% Pay TV market

PBL is the market leader in each of our core operations

1. Overview of PBL cont’

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Business Audience Statistic

Nine Network Between 4-8 million viewers each eveningACP 13 million readers annuallyCrown 10 million visitors annually ecorp 5.8 million unique visitors per monthFoxtel 780,000 subscribersFox Sports 1.2m subscribers

Over 10 million Australians come in contact with a PBL product or service on any given day

1. Overview of PBL cont’

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Australia:

65 titles

44% circulation share

2. Overview of ACP

New Zealand:

22 titles

42% circulation share

Asia:

10 titles

Singapore, Malaysia, Taiwan and Thailand

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2. Overview of ACP cont’

ACP has performed well against this trend due to three-year restructuring process:

Revenue increased by 4.9% to AUD$292 million in six months to 31 December 2001 over previous corresponding period

Double-digit bottom-line growth expected for the full 2002 financial year

39% of advertising market share, up from 36% last year

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3. ACP in Asia Pacific – New Zealand

Very similar legal and cultural environment to Australia

Largest magazine publisher with 49% advertising market share and 22 leading titles

ACP provides cross-promotional support to Prime NZ free-to-air television network, in which PBL has a 50% option to buy

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Country Ownership

Singapore Singapore Women’s Weekly ACP Cleo ACP Finder ACP Harper’s BAZAAR 50:50 joint venture with Hearst

Malaysia Malaysian Women’s Weekly ACP Cleo ACP Finder ACP Harper’s BAZAAR 50:50 joint venture with Hearst

Thailand Cleo 49:51 joint venture with Hachette/The Bangkok Post

Taiwan Cleo 30:70 joint venture with Hwa Ker Publishing

3. ACP in Asia

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Factors for success:

Ability to translate the formula of Cleo and Women’s Weekly on a country-by-country roll-out

Policy of hiring local editorial and advertising sales staff

Educating the reader to discern your quality product over the competition

Quality researched editorial that does not overstep the boundaries of propriety

Retaining strong editorial branding

3. ACP in Asia cont’

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Finding a like-minded local partner where required

Adapting Western-style editorial and production standards across the region

Educating the reader to discern your quality product over the competition

Pressure to discount advertising rate card

Lack of industry standard audited circulation

3. ACP in Asia cont’

Challenges:

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4. Expansion opportunities in Asia for ACP

Further expansion potential in Asia Thailand China Indonesia India South Korea

Publication of non-English editions

Brand extension Sponsorship and events such as Cleo Top 50

Bachelors Beauty guides, cook books, diaries etc

Untapped cross-media promotion Television Web sites

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Growth Strategies in the Asian Region

FIPP Seoul Conference, April 2002

Presented by John AlexanderCEO of PBL Media and ACP Publishing

Growth Strategies in the Asian Region

FIPP Seoul Conference, April 2002

Presented by John AlexanderCEO of PBL Media and ACP Publishing