introduction to singapore press holdingsat s$2.78b, s$574m and s$495m respectively • sph reit,...
TRANSCRIPT
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23 May 07
Introduction to Singapore Press Holdings
Introduction to Singapore Press Holdings
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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 – 20
6. What is the Group’s property strategy? 21 – 22
7. What are the objectives and returns of the Treasury and Investment business?
23 – 24
8. What is SPH’s operating margin and is it sustainable? 25
9. What is SPH’s dividend policy? 26
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, LianheWanbao, The New Paper and Berita Harian/Minggu. Notable examples include revamp ofZaobao and Straits Times in July 2016 and July 2015 respectively
� Launch of tablet and mobile phone versions (iPad, iPhone and Android) for The StraitsTimes, The Business Times, Berita Harian, Lianhe Zaobao, Lianhe Wanbao and Shin MinDaily 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
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Maintaining high readership
Source: Nielson Media Research, Media Index
SPH newspapers maintain popularity and high readership
despite challenging environment
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Maintaining high readership (Cont'd)
News & Infotainment
SPH is committed to developing innovative new media platforms that synergise with our traditional media offerings
Apps
Social Networking
www.asiaone.comwww.businesstimes.com.sgwww.straitstimes.com
www.beritaharian.sgwww.tnp.sg www.tamilmurasu.com.sgwww.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
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Print vs digital media in Singapore
Daily Average Newspapers CirculationAugust 2016
88
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 subscriptionswere 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 newspapersand 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 comparativepurposes, 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
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10
Growth Thrusts
MagazinesOnline Classified
Events andExhibitions
SPH
Property
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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 beyond12
SINGAPORE
MALAYSIA
Singapore’s leading e�marketplace for cars
13
SgCarmart is the number one carclassified site in Singapore thatoffers car listings, car auctions,valuation and a car forum.
It achieved page views of morethan 40 million and 1 millionunique visitors.
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• 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.
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SRX is the authoritative source for Singapore real estate
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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.
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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
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� 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 201620
(As at August 31, 2016)
40.9%
7.0%35.4%
16.7%
Group Investible Fund(S$1.2b)
Equities Bonds
Investment Funds Cash and deposits
• Conservative stance
maintained on investment
allocation, focused on
capital preservation
• Returns are expected to
be commensurate with
low risk-return profile to
mitigate against volatility
Group investible fund
21
22
10 3.0
5 3.9
5.0
3.9
1
5
Period in
years^
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
50
100
150
200
250
300
350
400
450
FY2012 FY2013 FY2014 FY2015 FY2016
S$'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
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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
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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)
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Thank you
Please visit www.sph.com.sg
for more information.