Introduction to Press Holdings

Updated on 20 October 2011

23 May 07 1 Frequently 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 5 stake? 3. Newspaper circulation is falling globally. What is SPH doing 6 about declining circulation? 4. Is SPH’s newspaper business affected by the Internet and other 7 media? 5. What are the growth areas of the Group? Will SPH expand 8-13 overseas? 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

2 A Leading Media Organisation

Newspapers

Dominant Newspaper Broadcasting Publisher in Singapore Magazines Leading Magazine 2 radio stations and 20% Publisher in stake in free-to-air TV Singapore & Malaysia

Events/Out- SPH New Media of-home News portals, Events and Online classifieds, outdoor advertising Search and directories Property Investments -Approx. S$1b of investible funds -Paragon including MobileOne (13.9%) - (60%) & Starhub (0.8%) - OpenNet (25%)

3 Dominant Newspaper Publisher in Singapore

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

SPH publishes 18 out of 19* newspapers in Singapore

In Singapore, 77% of population above newspapers has 15 years old read one more than 50%^ of SPH’s news share of the media ad publications daily market

* SPH also has a 40% stake in Today – a freesheet by MediaCorp 4 ^ Source: SPH SPH 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

. 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 5 Maintaining High Newspaper Readership

We continue to invest in new initiatives catering to readers’ and advertisers’ needs . , 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 Junior ZBComma, Gen G and i3

SPH newspapers maintained its popularity and high readership despite the challenging environment

Remarks: Nielson Fieldwork period: July-June: year indicated refers to the year when fieldwork was completed 6 Source: Nielson Media Research, Media Index (1992 – 2010) Print 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 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 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 7 Growth Thrusts

Online Magazines Classified

SPH

Events Property

8 Magazines - A Growth Story

. 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) Fashion & Beauty  Hardwarezone : Oct 2006 (Singapore & the region)  Blu Inc Media HK : Dec 2007 (Hong Kong & China)  Luxury Insider (34%) : Oct 2010 (Singapore, Hong Kong & China) . More than 400% growth in ad revenue since 2004 Men’s & Special Interest

Women’s lifestyle – in various countries with customised local content

Luxury

Singapore Malaysia Indonesia Thailand Vietnam edition edition edition edition edition Custom Publishing

9 Internet

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

News & Infotainment

www.tnp.sg cyberita.asia1.com.sg www.straitstimes.com Apps www.businesstimes.com.sg Tamilmurasu.tamil.sg

www.asiaone.com

RazorTV Social Networking

Razor TV, a novel & interactive web TV. An STOMP (Straits Times Online initiative to engage audience and capture Mobile Print) integrates content new eyeballs and activities in three platforms of print, online and mobile

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

10 Online Classifieds – Establishing a Regional Footprint

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

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

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

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

^ Source: Effective Measures, Jul 2011 * Source: comScore, Jun 2011 11 Events

. 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 2010 . Extending footprint into Beijing with COMEX China in 2012

12 Out-of-Home Advertising

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

. 11 LED screens at strategic locations (Central Business District, Orchard Road, suburban hubs) . More than 500 plasma and LCD screens at major malls and banks in Singapore

13 Property

Strategy

. 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 population growth

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

. Property projects dependent on future opportunities

14 Property

Paragon Clementi Mall

. A suburban retail mall, strategically . Premier luxury shopping mall located in a good residential along Orchard road, valued at catchment area with high human S$2.32b in Aug 2011 traffic expected . SPH has a 60% stake in the mall which was valued at S$590m in Aug 2011

15 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

. 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

16 Operating Margins sustained above 30%

40%

35% 30% 35% 35% 33% 33% 25% 31%

20%

15%

10%

5%

0% FY2007* FY2008 FY2009 FY2010 FY2011

*Restated for applicable retrospective accounting adjustments (FRS 40) Note: Computed based on recurring earnings excluding Sky@eleven 17 Dividend Track Record

40 120

35 100

30 80 26 27 27 24 25 24 (cents) 25 60 (%)

20 40

15 20

10 0 2006 2007 2008 2009 2010 2011

LHS - Dividend per share RHS - Dividend Payout Ratio *

* Computed based on recurring earnings of SPH

18 Thank you

Please visit www.sph.com.sg for more information.