FAIRFAXFAIRFAX MEDIAMEDIA NZ:NZ: PAVINGPAVING THETHE ROADROAD FORFOR AA DIGITALDIGITAL FUTUREFUTURE

New Zealand’s largest media company

Fairfax NZ reaches 3.5 million New Zealanders every month (88% of population) via its digital and print brands

FY18-21 Key Priorities

1 2 3

Grow engaged Diversify with Extend the and high value new digital runway for our audiences products and print products services ARPU Model - the Engine of Our Strategy

Create premium products and new businesses Payers Subscriptions Selling our audience things E-Commerce & Transactions Retail, offers, coupons, vouchers

Convert, engage Authenticated Audience and strengthen loyalty Audience targeting, data products, insights, content & audience partnerships

Attract, acquire & Mass Audience develop our audience Display advertising, basic content marketing Growing Mass Audience

How? Successes? Monthly audiences → Best coverage of major events 1.47m → 2.07m → Most comprehensive regional coverage Monthly volume → Social/SEO optimisation of stories 170m Pls → 198m Pls → Reticulate traffic Daily audiences 524,000 → 1.1m

Attract, acquire & Mass Audience develop our 93% audience Display advertising, basic content marketing KPEX - Monetising MassMass AudienceAudience

KPEX Monthly Revenue Growing Authenticated Audience

How? Successes?

→ Develop capabilities in identity Stuff memberships* 104,000 → 960,000 and data management → Incentivise our audiences to sign Neighbourly memberships up or declare their data 62,000 → 500,000

Convert, engage Authenticated Audience and strengthen 57% loyalty Audience targeting, data products, insights, content & audience partnerships

Attract, acquire & Mass Audience develop our audience Display advertising, basic content marketing Neighbourly: Driving Membership + Revenue

Unique Audience Rank Name (000) 1 Google 3,243 2 Facebook 2,660 3 MSN/Outlook/Bing/Sk 2,582 ype 4 YouTube 2,266 5 Stuff 2,071 6 Microsoft 2,066 7 nzherald.co.nz 1,838 8 Trade Me 1,755 9 New Zealand 1,748 Government 10 Wikipedia 1,321 ------16 Neighbourly 777 17 Newshub 752 17 Apple 752 19 Spark New Zealand 750 20 Pinterest 745 Increasing E-Commerce Transactions

How? Leverage new capabilities to launch multiple transaction-based products

Promote and train our members to E-CommerceE-Commerce Transactions 100% transact with or via Transactions Fairfax Retail, offers, coupons, vouchers Retail, offers, coupons, vouchers

Convert, engage Authenticated Audience and strengthen loyalty Audience targeting, data products, insights, content & audience partnerships

Attract, acquire & Mass Audience develop our audience Display advertising, basic content marketing From Home Products to Events Why can we sell to our readers?

Our brands have influence and trust with their readers

We’ve built credibility, trust and authenticity with our readers through our community campaigns. Creating High Value Subscription Products

Create premium products and new Payers 100% businesses Payers Subscriptions Subscriptions Promote and train our members to E-Commerce transact with or via E-CommerceTransactions Transactions Fairfax Retail, offers, coupons, vouchers Retail, offers, coupons, vouchers

Convert, engage AuthenticatedAuthenticated Audience Audience and strengthen loyalty AudienceAudience targeting, targeting, data dataproducts, products, insights, insights,content content & audience & audience partnerships partnerships

Attract, acquire & MassMass Audience Audience develop our Display advertising, basic content marketing audience Display advertising, basic content marketing The Success of Stuff Fibre FY18-21 Key Priorities

Payers Payers 2 Subscriptions Diversify with new Subscriptions 3 digital products and Extend the services E-Commerce E-CommerceTransactions Transactions runway for our Retail, offers, coupons, vouchers Retail, offers, coupons, vouchers print products

AuthenticatedAuthenticated Audience Audience 1 Grow engaged AudienceAudience targeting, targeting, data dataproducts, products, insights, insights,content content & audience & audience partnerships partnerships and high value audiences MassMass Audience Audience DisplayDisplay advertising, advertising, basicbasic contentcontent marketing marketing Extending the life of print

● Review traditional print models to improve efficiencies ● Optimise revenue through targeted pricing model ● Minimise churn with CLV engagement activity

Reduce costs Increase Reduce and yield from churn and maximise print increase impact of products to tenure fixed costs of optimise through print revenue engagement products Reviewing traditional print models

The new model

Nelson Mail content Printed morning paper Strong community A daily email newsletter across your devices four times per week, papers across dedicated to the top on Stuff and Mon, Wed, Fri, Sat Nelson and Tasman stories of the region, Neighbourly advocating for our including key info such community as Family Notices Optimising revenue: Mather-based pricing

Parameters ● 9% average price increase across 10 print publications ● 10% “business as usual group” – priced by FFX Progress ● Mather stop rate is performing marginally better after 3 months ● Tracking approx 1% up vs. budget for Q1FY18 (Q1FY17 was tracking -1.5%) Optimising revenue: Mather-based pricing

Parameters ● Longest tenured publication: The Press ● First increases effective July 1, 2017 Progress ● Mather targets stop rate is (-1.80%) lower over 3 months

PRIVATE AND CONFIDENTIAL Optimising revenue: Mather-based pricing

Yield has been retained and increased versus budget and versus FY17: lower volumes, more revenue The road ahead...

● CLV activity to reward and retain ● Include all data sets in Mather model ● Lead score to target and convert high value audience THANKTHANK YOUYOU Agency Trading Desks taking giant’s share Iconic NZNZ BrandBrand ClientClient -- RevenueRevenue DrivenDriven byby NativeNative