LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA

Handling The Media in Contentious Situations ©

Millicent Danker Founder & CEO

March 18, 2008

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

The Brief You & The Media Dealing with Media Demands Tools & Techniques to avoid pitfalls & improve company reputation

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

You & The Media

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Brief History

• The oldest, largest media institution: The Group; its flagship paper, The New Straits Times, was first established in July 15, 1845 and is believed to be among the oldest titles in the world • The New Straits Times was the leading national newspaper in English until 1997 when its daily circulation was overtaken by , a tabloid first established in 1971 • Readership of the English dailies has declined in favour of the vernaculars; is the fastest-growing paper in the country with a circulation of nearly 250,000 • The (210,000) was published in 1938 as the first vernacular newspaper • , born in 1957, enjoys a circulation of the same • The mainstream Chinese , six in all, claim a combined daily circulation of more than 1 million • Malaysia’s own national news agency, , began operations in 1968 • Television made its debut in Malaysia in the early 60s

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Key Media Issues

• Government-influenced; organized, like government, along party lines • Highly supportive of the national agenda • Sometimes used to discredit individuals and institutions • Skills shortages, poor language competency • Print media much more developed in content, electronic media less so • TV widely used for propaganda; radio entertains

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Mainstream Press

– 4 English Morning Dailies (The Star, The New Straits Times, , ) – 4 Bahasa Morning Dailies (Harian Metro, Berita Harian, Utusan Malaysia, Kosmo!) – 6 Chinese Morning Dailies (, , Guang Ming, , , Oriental Daily) – 2 Tamil Dailies (, ) – Sunday Editions of the above – A Weekly Financial Newspaper ()

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Electronic Media

• Radio: – RTM (32 stations) – AMP/ (8 terrestrial radio channels and 10 music channels) – THR (1 station) – Radio Rediffusion (2 stations) – Synchrosound (1 station)

• Television: – RTM (1,2) – Wholly government-owned – TV3 (Media Prima Group) – 8TV (Media Prima Group) – Ntv7 (NatSeven TV Sdn Bhd) – ASTRO – MiTV – Berjaya Group Berhad

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Alternative Media

• www..com • www.jeffooi.com • www.harakahdaily.net • “Utusan Konsumer” • “Aliran” • www.blog.limkitsiang.com • www .rocky’sbru.com • www.malikintiaz.blogspot.com • www.brandmalaysia.com • www.mykmu.net

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Foreign Press

Foreign Media Representatives Wire Services & News Agencies

• Bernama Economic Service • Financial Times (S’pore) • Reuters • CNN (S’pore) • AFP • Newsweek (S’pore) • AP

• AWSJ • UPI • Straits Times Singapore • Bloomberg Business News • Business Times Singapore • Dow Jones News Wires • JiJi Press Ltd • AFX-Asia • Asia Inc. (S’pore) • Kyodo News Service • CNBC Asia (S’pore) • Nikkei (Nihon Keizai Shimbun) • Al-Jazeera

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

East Malaysian Press

• Key Papers: • Key Papers: – Berita Petang Sarawak (C) – Post (E) – Chinese Daily News (C) – Borneo Mail (E) – International Times (C) – Borneo Bulletin (E) – Miri Daily News (C) – (E) – (C) – (E) – Utusan Sarawak (BM) – Asia Times (C) – (E) – Morning Post (C) – (E) – Merdeka Daily News (C) – Eastern Times (E) – Overseas Chinese Daily News (C) – See Hua Daily News (C)

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

The Media: Why they matter

An important channel of communication

Command large audiences/readers/listeners/viewers

Control public opinion

Wield influence and power

Can build or destroy reputation

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Know Your Media

• Ownership • News Interest • Editorial Policy • Readership Profile • Key Players • Circulation • Influence • Geographical Strengths • Frequency of Publication • Copy Deadlines

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

A day in the life of a newsroom

News Editor assigns reporter to event

Reporter returns to write his story

Story is edited by Sub-Editor

Sub-Editors lay out news pages

Evening conference decides how to play

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA Sir Adrian Cadbury, Father of Corporate Governance says…

‘It is essential that companies should present their past record and their future opportunities positively to the outside world. Since a number of people will be involved in representing the company, chairmen have to make certain that they are all playing to the same rules and presenting the same picture of the enterprise’

-- From ‘Corporate Governance & Chairmanship, A Personal View’, 2002

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

When to give an interview?

 A clear opportunity to  present a message  enhance company reputation or image  provide publicity for products and services  influence public opinion or educate  correct misunderstanding  motivate staff  promote understanding

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

When not to give an interview?

X time pressures X issue-related environment X potential negatives X wrong spokesperson X incomplete facts X ‘unfrie ndly’ or ‘naïve’ press X wrong timing

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

How do you prepare?

Know your media Consider the audience

Know your story

Determine key messages Anticipate questions/develop Q&A

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Dealing with media demands

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Key Communication Values Openness & Transparency

Two-way communication

Accountability

Timeliness

Accuracy & Simplicity

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

During a Crisis

In a crisis, the media want answers to these questions:

• What happened? • How did it happen? • What are you doing about it?

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

During a Crisis

Your task is to provide these answers:

• This is what happened • This is what we are doing about it • This is how we feel about what has happened

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

During a Crisis

Reasons for poor communications:

• Lack of information • Don’t know what to say, or how to say it • Fear of making the situation worse • Fea r of the media • Trying to protect reputation • Fear of revealing proprietary information

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

During a Crisis

Media Behaviour

• Feeding frenzy • Intense competition among journalists • Needing something extra via scoops or exclusives • High er emotional content, with natural sympathy for the underdog

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

During a Crisis

If you do not provide information others will… • Eyewitnesses • Analysts, observers • Local, State or National Level Politicians • Armchair Experts • Pre ssure Groups • Local Community Leaders • Partner/Internal ‘sources’

These sources will shape and decide the story for your organisation, resulting in: • Stakeholder perception issues • Risks to corporate reputation • Conflicting and contradictory views

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

During a Crisis

When communicating, do…

• Tell the truth • Release only confirmed facts • Show concern when death/injuries/psychological trauma/losses have occurred • Tell what you are doing to resolve the situation and/or mitigate the damage • Provide regular updates

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

During a Crisis

• Both electronic and print media will be interested in accurate and early information • We must always appear to be well-informed and in control • The Chairman/CEO, as the chief spokesperson, may need to speak personally, or be interviewed on TV; media skills/simulation needed • Good PR skills are essential in times of crisis • Companies at high risk usually have pre-prepared statements for press/employees • Consi der a ‘Gag’ order for internal stakeholders • Press material should be drawn from Risk Assurance, Corporate Governance, HSE, Environmental, Quality & other policies

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

During a Crisis

When conveying bad news, remember to focus on the PAP formula

• People (to demonstrate your concern for those affected) • Action (as taken by your company to solve/mitigate the problem) • Perspective (putting matters in context)

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Answering a Difficult Question

Reframe / Buy Time:

• PAUSE & SMILE “Some people may take that view about our safety policies, but we have the best safety record of all Asian airlines…”

• THE HELICOPTER TECHNIQUE “If you look at it that way, I can understand that service quality may appear to be lacking but if you look at this way you will find that we are ISO certified and have consistently won the industry’s best-practice award for 11 years now…”

• TAKE A STEP BACK “Before I answer that specific question, let me give you some background about our company…”

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

A Case in Point – Air Asia

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Tools & Techniques

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

The Story House Approach

• CONCEPT: Packaging core messages to facilitate delivery in media situations

• CONSTRUCTION: A roof with 3 rooms based on a solid foundation of facts and figures

• COM MUNICATION: ‘Big-picture’ approach – create the impression then deliver messages horizontally, using facts and figures to illustrate them

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Constructing The Story House

• A ROOF: The takeaway impression

• THREE ROOMS: One for each core message

• SOME STILTS: The foundations which support the messages (the facts & figures)

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Why Use a Story House?

• You communicate not more than 3 messages at any one time • You package information into digestible bits • You give shape and definition to your messages • You have a framework or agenda for the media interaction • You have a platform to ‘bridge back’ when derailed • You have a memory or recall aid

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA Core Messages Messages pertaining to important aspects of your business

• Mission/Vision • Business philosophy • Core values • Brand proposition • Financial performance • Ope rational successes • Track record • Products & Services • Future directions • Corporate governance

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA The Air Asia Story House: Air Asia has brought democracy to flying

We are a four-year-old airline We’ve carried 20 million people

We have helped the common man to fly

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

Content vs. Control: Evaluating your performance

CONTENT CONTROL • What is my Story? • Build rapport with the media • Key Messages • Take control • Supporting Facts & Figures • Manage interruptions • Stay on message Bridge back to the Story House • • Use flagging & listing • Present positive body language • Speak clearly & concisely • Do not repeat negatives • Smile

LEXIS NEXIS * INVESTOR RELATIONS MANAGEMENT * MARCH 18, 2008 * BURSA MALAYSIA

THANK YOU

This document © remains the intellectual property of Perception Management International Group and may not be reproduced or used in any form whatsoever without the permission of its Principal Consultant

This document remains the intellectual property of Perception Management International Group and may not be reproduced or used in any form whatsoever without the permission of its Principal Consultant