introduction to singapore press holdingssph.listedcompany.com/misc/101booklet_mar17_v5_june.pdf ·...
TRANSCRIPT
2
Frequently Asked Questions
Reference
slide no.
1. Why is SPH dominant in the Singapore media industry? 3 – 4
2. Newspaper circulation is falling globally. What is SPH doing
about declining circulation?
5 – 6
3. Is SPH’s newspaper business affected by digital and other
media?
7 – 8
4. What is the impact of government policy measures on the
newspaper business?
9
5. What are the growth areas of the Group? Will SPH expand
overseas?
10 – 18
6. What is the Group’s property strategy? 19 – 20
7. What are the objectives and returns of the Treasury and
Investment business?
21 – 22
8. What is SPH’s operating margin and is it sustainable? 23
9. What is SPH’s dividend policy? 24
3
A Leading Media Organisation
Media
Dominant Newspaper publisher in
Singapore
Leading digital news content provider
in Singapore
Top Magazine publisher in Singapore
& Malaysia
Digital
Classified
Singapore’s
leading e-
marketplaces for
cars and property
Property
-SPH REIT
-The Seletar Mall
Others
-Media Fund
- E-Commerce
-Education
Exhibitions &
Events
Consumer, trade
conference events
Treasury &
Investment
Investible funds exceed $1b
4
Dominant Newspaper Publisher in Singapore
SPH publishes 18 out of 19*
licensed newspapers
in Singapore
About 60% of population above
15 years old read one
of SPH’s news
publications daily
In Singapore, newspapers has the highest share of the
media ad market
SPH has a spectrum of products including the English flagship daily, The Straits Times
(since 1845), and the Chinese daily, Lianhe Zaobao (since 1926)
* SPH owns 40% of Today, a freesheet by MediaCorp
We continue to invest in new initiatives catering to readers’ and
advertisers’ needs
Constant refreshing of our products including The Straits Times, Lianhe Zaobao, Lianhe Wanbao, The New Paper and Berita Harian/Minggu. Notable examples include revamp of Zaobao and Straits Times in July 2016 and July 2015 respectively
Launch of tablet and mobile phone versions (iPad, iPhone and Android) for The Straits Times, The Business Times, Berita Harian, Lianhe Zaobao, Lianhe Wanbao and Shin Min Daily News
Continued subscription campaigns
The Straits Times is Singapore’s #1 mobile news app
Zaobao and Asiaone also rank amongst the most popular news apps in Singapore
Invested in video content capabilities to meet evolving needs of readers and advertisers
5
Maintaining high readership
Source: Nielson Media Research, Media Index
SPH newspapers maintain
popularity and high readership
despite challenging environment
6
Maintaining high readership (Cont'd)
News & Infotainment
STOMP (Straits Times Online
Mobile Print) integrates content
and activities in three platforms
of print, online and mobile
SPH is committed to developing innovative new media platforms that synergise with our traditional media offerings
Apps
www.zaobao.com.sg
Social Networking
www.asiaone.com www.businesstimes.com.sg
www.straitstimes.com
www.beritaharian.sg www.tnp.sg
www.tamilmurasu.com.sg www.zaobao.sg
Video
In Singapore, newspapers have more than 40% of the media ad market. Digital media has seen rapid growth over years.
SPH’s print media has maintained its dominance despite the presence of the internet
Easy access to shops, entertainment and other amenities is Singapore’s lifestyle and this offers a superior experience to online shopping
Locals frequently visit international websites, which makes online advertising very long tail
Our newspapers provide local content that readers are unable to find on other online sources
Effectiveness of our print product that reaches more than 2 million individuals daily
Local newspaper reading habits are still strong
We have continued to maintain strong newspaper readership (print and digital), with our competitively priced subscription packages
7
Print vs digital media in Singapore
Daily Average Newspapers Circulation
August 2016
8 8
Majority of digital
subscribers also
subscribe for print
1 With effect from 1 March 2016, all subscriptions to our All-in-One packages are counted as the sale of one print copy and one digital copy. Prior to 1 March 2016, such subscriptions
were counted as the sale of one print copy and three digital copies, in line with Audit Bureau of Circulation’s (ABC) rules. With the implementation of new cover prices of our newspapers
and All-in-One packages on 1 March 2016, we have had to change the basis of our circulation count and have obtained ABC’s endorsement for the new method. For comparative
purposes, copy sales for Aug-15 had been restated accordingly.
* Classified includes Recruitment and Notices
Advertising market remained cautious
Government policies continued to impact on Property sector
-12.5%
-7.6%
-11.9%
-14.4%
-11.7%
-10.3% -9.9%
-1.7%
-8.6%
-7.5%
-11.9%
-8.4% -8.6%
-12.5%
-10.4%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY2016
Newspaper Ad Revenue Y-O-Y change (%)
Display Classified* Newspaper Ad
9
11
Magazines
The leading publisher in Singapore and Malaysia
About 100 magazine titles in Singapore and the region
70 digital titles and growing
Magazines
VIETNAM
HONG KONG
PHILIPPINES
INDONESIA
THAILAND
From 5 titles in 2003, to about 100 titles in Singapore and beyond 12
SINGAPORE
MALAYSIA
Singapore’s leading e-marketplace for cars
13
SgCarmart is the number one car
classified site in Singapore that
offers car listings, car auctions,
valuation and a car forum.
It achieved page views of more
than 40 million and 1 million
unique visitors.
14
• Top car classifieds site in
Singapore
• Profitable
• >40m monthly pageviews
and 1m unique visitors
• Another popular car
classifieds site in Singapore
Singapore’s leading e-marketplace for property
Streetsine offers real time, relevant and
proprietary information and other
services for efficiently transacting real
estate in Singapore.
It has established strategic
partnerships with major real estate
agencies in Singapore and sees more
than 200,000 listing searches each
month.
15
17
Events and Exhibitions
Since 2008, Sphere expanded rapidly to become a
regional leader in events and exhibitions
Our portfolio of more than 30 shows spans across a
variety of themes (consumer, trade and
conferences)
wide spectrum of sectors (Baby & Kids, Gourmet &
Festivals, Food, Manufacturing and Technology)
Expanding regional presence in Malaysia, Myanmar,
Philippines and Sri Lanka, through acquisition and
bringing homegrown shows to the region.
18
Events and Exhibitions
Consumer
• Baby & Kids
• Tertiary Education
• Events Management
• Food & Beverage
• Festival
• Gourmet
• Motherhood
• Technology
• Roadshows
Trade
• Building Technology
• Manufacturing Solutions
• Facilities Management
• Franchising & Licensing
• Gifts & Stationery
• Office Equipment
• Food & Beverage
Conference
• Banking & Finance
• Hospitality Investment
• Civil Aviation
• Conference Services
19
Build on track record of Paragon in the retail mall sector
Buy and hold attractive infrastructure in Singapore
Property yields and capital appreciation to boost Group’s total
returns
Property projects are opportunistic
Property strategy
• 100% occupancy for all 3 malls
• Market value for Paragon (freehold), The Clementi Mall and The Seletar Mall
at S$2.78b, S$574m and S$495m respectively
• SPH REIT, whose retail assets comprise of Paragon and Clementi Mall,
delivered a yield of 5.7% (based on closing price of $0.960 per unit on 31
August 2016)
Paragon The Clementi Mall The Seletar Mall
Property Portfolio
#
# Based on latest valuation as at 31 August 2016 20
(As at August 31, 2016)
40.9%
7.0% 35.4%
16.7%
Group Investible Fund (S$1.2b)
Equities Bonds
Investment Funds Cash and deposits
• Conservative stance
maintained on investment
allocation, focused on
capital preservation
• Returns are expected to
be commensurate with
low risk-return profile to
mitigate against volatility
Group investible fund
21
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
50
100
150
200
250
300
350
400
450
FY2012 FY2013 FY2014 FY2015 FY2016
S$'m Recurring Earnings and Operating Margin
Operating Profit^ Operating Margin^
^ This represents the recurring earnings of the media, property and other businesses. It excludes impairment charges on goodwill and intangibles .
Healthy Operating Margin
23
Dividend Track Record
* Computed based on Group recurring earnings net of non-controlling interests of the Property segment
^ Excludes special dividend of 18 cents paid pursuant to the establishment of SPH REIT
24
24 22 21 20 18
90.2%
96.2%
107.8%
102.1%
109.1%
60.0%
70.0%
80.0%
90.0%
100.0%
110.0%
120.0%
10
15
20
25
30
2012 2013^ 2014 2015 2016
(cents)
Interim & Final Div (LHS) Div Payout Ratio* (RHS)
24