Introduction to Introduction to Singapore Press Holdings Singapore Press Holdings

Introduction to Introduction to Singapore Press Holdings Singapore Press Holdings

Updated on 19 March 2012

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23 May 07

Frequently Asked QuestionsFrequently Asked Questions

Reference slide no.

1. Why is SPH so dominant in the Singapore media industry? 3 – 4

2. Who are the controlling shareholders of SPH and what is their stake?

5

3. Newspaper circulation is falling globally. What is SPH doing about declining circulation?

6

2

4. Is SPH’s newspaper business affected by the Internet and other media?

7

5. What are the growth areas of the Group? Will SPH expand overseas?

8-13

6. What is the Group’s property Strategy? 14-15

7. What other projects is SPH investing in? 16

8. What is SPH’s operating margin and is it sustainable? 17

9. What is SPH’s dividend policy? 18

MagazinesLeading Magazine

Publisher in Singapore & Malaysia

Broadcasting2 radio stations and 20%

stake in free-to-air TV

A Leading Media Organisation A Leading Media Organisation

NewspapersDominant Newspaper Publisher in Singapore

SPH

3

Property-Paragon

-Clementi Mall (60%)

Investments-Approx. S$1b of investible funds

including MobileOne (13.9%) & Starhub (0.8%)

- OpenNet (25%)

New MediaNews portals,

Online classifieds

Events/Out-of-homeEvents and

outdoor advertising

SPH

Dominant Newspaper Publisher in SingaporeDominant Newspaper Publisher in Singapore

SPH publishes 18 out of 19*

newspapers in Singapore

SPH has a spectrum of products including the 166-year-old English flagship daily, The Straits Times, and the 88-year-old Chinese daily, Lianhe Zaobao.

4

74% of population above 15 years old read one

of SPH’s news publications daily

In Singapore, newspapers has more than 50%^

share of the media ad market

* SPH also has a 40% stake in Today – a freesheet by MediaCorp^ Source: SPH

SPH ShareholdingSPH Shareholding

� SPH is governed by the Newspaper and Printing Presses Act* in Singapore, which states that no person shall hold >5% of the shares of a newspaper company without the approval of the MICA^ Minister

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� SPH has a diversified shareholder base as our shares are widely held by global and local institutions, as well as individuals

* Newspaper and Printing Presses Act, Chapter 206 of Singapore^ Ministry of Information, Communications and the Arts

Maintaining High Newspaper ReadershipMaintaining High Newspaper Readership

We continue to invest in new initiatives catering to readers’ and advertisers’ needs� My Paper, the world’s first bilingual newspaper

� Tabla!, an English newspaper for the Indian expatriate community

� Student publications e.g. IN, Little Red Dot, Thumbs Up, Thumbs Up Junior ZBComma, Gen G and i3

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Remarks: Nielson Fieldwork period: July-June: year indicated refers to the year when fieldwork was completed

Source: Nielson Media Research, Media Index (1992 – 2011)

SPH newspapers maintained its popularity and high readership

despite the challenging environment

Print vs. Internet Media in SingaporePrint vs. Internet Media in Singapore

� In Singapore, newspapers has more than 50% share of the media ad market

� While the proportion of households with internet access reached 82%^, the internet’s share of the media ad market remains around 7%*

� 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

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� 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 challenging

� Our newspapers provide local content that readers are unable to find on other online sources

� Effectiveness of our print product that reaches close to 3 million individuals daily

� Local newspaper reading habits are still strong

� As readers have to pay to access our online news, we have continued to maintain strong newspaper readership

^ Source: Infocomm Development Authority of Singapore (IDA), IDA’s Annual Survey on Infocomm Usage in Households for 2010, April 2011* Source: PricewaterhouseCoopers LLP, 2011

Growth ThrustsGrowth Thrusts

MagazinesOnline Classified

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Events

SPHSPH

Property

Magazines Magazines -- A Growth StoryA Growth Story

Fashion & Beauty

� A leading publisher in Singapore and Malaysia� More than 100 magazine titles in Singapore and the region� Expansion to regional countries through acquisitions and organic

growth� Blu Inc Group : Sep 2004 (Singapore & Malaysia)� Hardwarezone : Oct 2006 (Singapore & the region)� Blu Inc Media HK : Dec 2007 (Hong Kong & China)� Luxury Insider (34%) : Oct 2010 (Singapore, Hong Kong & China)� ACP Magazines : Nov 2011 (Singapore, Malaysia & Indonesia)

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Women’s lifestyle

Men’s & Special Interest

Luxury

Custom PublishingSingapore edition

Malaysia edition

Indonesia edition

Thailand edition

Vietnam edition

Her World – in various countries with customised local content

� ACP Magazines : Nov 2011 (Singapore, Malaysia & Indonesia)

� More than 400% growth in ad revenue since 2004

InternetInternet

News & Infotainment

www.businesstimes.com.sg

cyberita.asia1.com.sg

Tamilmurasu.tamil.sg

www.straitstimes.com

SPH is committed to develop innovative new media platforms that synergise with its traditional media offerings

www.tnp.sg

Apps

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Omy is Singapore's first bilingual news and interactive portal that caters to needs of the new bilingual internet generation

STOMP (Straits Times Online Mobile Print) integrates content and activities in three platforms of print, online and mobile

Razor TV, a novel & interactive web TV. An initiative to engage audience and capture new eyeballs

RazorTV Social Networking

www.asiaone.com

Online Classifieds Online Classifieds –– Establishing a Regional Establishing a Regional FootprintFootprint

� Expanded classifieds business into Malaysia, The Philippines, Indonesia and Australia with Schibsted ASA

� ST701 is Singapore’s leading e-marketplace for Jobs, Cars, Property & Shops

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Malaysia, The Philippines, Indonesia and Australia with Schibsted ASA

� Mudah.my is the No. 1 website in Malaysia^ and Ayosdito.ph is ranked the Top 2 classified website in The Philippines*

� Developed online directory, 701Panduan in Malaysia with Star Publications (Malaysia) Berhad

^ Source: Effective Measures, Jul 2011* Source: comScore, Jun 2011

Malaysia

Indonesia

The Philippines

EventsEvents

� SPH forayed into the events business through fully owned subsidiary, Sphere Exhibits Pte Ltd

� Sphere aims to be the leading lifestyle event company behind exciting and innovative fairs, shows, events and exhibitions

� Expanded its portfolio of consumer and trade shows through the acquisition of Bizlink Exhibition Services and Eastern Directories in

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Exhibition Services and Eastern Directories in 2010

� Extending footprint into Beijing with COMEX China in 2012

Leader in Digital Out-Of-Home advertising in Singapore with a retail network that reaches out to 80 per cent of Singapore

OutOut--ofof--Home AdvertisingHome Advertising

� 8 LED screens at strategic locations (Central Business District, Orchard Road, suburban hubs)

� More than 450 plasma and LCD screens in

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� More than 450 plasma and LCD screens in shopping malls and banks in Singapore

� Build on track record of Paragon

� Aim to establish presence in the retail mall sector over the long term

� Buy and hold attractive infrastructure to ride Singapore’s

PropertyProperty

Strategy

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� Buy and hold attractive infrastructure to ride Singapore’s population growth

� Property yields and capital appreciation to boost Group’s total returns

� Property projects dependent on future opportunities

Paragon Clementi Mall

Property Property

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� Premier luxury shopping mall along Orchard road, valued at S$2.32b in Aug 2011

� 100% occupancy

� A suburban retail mall, strategically located in a good residential catchment area with high human traffic

� Valued at S$590m in Aug 2011

� 100% occupancy

� Rentals in line with market

Successful tender for Sengkangcommercial site

1. In Jan 2012, SPH, together with United Engineers Limited (UEL)� won the tender for the Sengkang commercial site (SPH 70% stake) at a bid price of $328m

2. The joint venture capitalises on the retail management experience of SPH and property development experience of UEL

3. Excellent opportunity to create a lifestyle hub in north-eastern Singapore

4. Build on SPH’s track record of Paragon and Clementi Mall

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4. Build on SPH’s track record of Paragon and Clementi Mall

5. Attractive location:� fast-growing population� good mix of public housing and private homes � upcoming Seletar Aerospace Park� easy access to LRT/MRT stations and expressways

6. The site has a 99 year lease term and maximum GFA of approx. 284,000 sq ft

7. Development expected to be completed within 4 years

Synergistic Acquisitions Synergistic Acquisitions

� Acquisition of Shareinvestor, an internet financial services and technology company and market leader in Singapore, Malaysia and Thailand

� Enjoys synergies with various SPH online entities, in particular The Business Times and its website, businesstimes.com

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� A book publishing subsidiary which taps on the Group’s wealth of editorial content

� This award-winning team has the expertise to publish books across a broad spectrum of product categories, including Illustrated Non-fiction, Fiction, Trade, Reference and Educational School and Library Material for the export market

Operating Margins sustained above 30%Operating Margins sustained above 30%

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*Restated for applicable retrospective accounting adjustments (FRS 40)Note: Computed based on recurring earnings excluding Sky@eleven

Dividend Track RecordDividend Track Record

2426 27

2527

24 60

80

100

120

25

30

35

40

(%)(cents)

19

0

20

40

10

15

20

2006 2007 2008 2009 2010 2011

LHS - Dividend per share RHS - Dividend Payout Ratio *

* Computed based on recurring earnings of SPH

Thank you

Please visit www.sph.com.sgfor more information.