Introduction to Introduction to Singapore Press Holdings Singapore Press Holdings

Introduction to Introduction to Singapore Press Holdings Singapore Press Holdings

Updated on 3 May 2011

123 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

Magazines

Leading Magazine Publisher in

Singapore & Malaysia

Broadcasting

2 radio stations and 20% stake in free-to-air TV

A Leading Media Organisation A Leading Media Organisation

Newspapers

Dominant 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 Media

News portals, Online classifieds,

Search and directories

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

77% 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

5

� 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

6Remarks: Nielson Fieldwork period: July-June: year indicated refers to the year when fieldwork was completed

Source: Nielson Media Research, Media Index (1992 – 2010)

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 81%^, the internet’s share of the media ad market remains under 2%*

� 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

7

� 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 Surveys on Infocomm Usage in Households and by Individuals, Mar 2010* Source: Nielsen Media Research Adex

Growth Thrusts in Media Adjacencies Growth Thrusts in Media Adjacencies

Magazines Internet

8

Events

SPHSPH

Classified &

Directories

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)

� More than 400% growth in ad revenue since 2004

9

Women’s lifestyle

Men’s & Special Interest

Luxury

Custom PublishingSingapore

editionMalaysia edition

Indonesia edition

Thailand edition

Vietnam edition

Her World – in various countries with customised local content

� 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

10

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

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

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

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

11

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: comScore internet media rankings, Sep 10

Malaysia

Indonesia

The Philippines

Australia

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

� It expanded its portfolio of consumer and

12

� It expanded its portfolio of consumer and trade shows through the acquisition of Bizlink Exhibition Services and Eastern Directories in 2010

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)

13

suburban hubs)

� More than 500 plasma and LCD screens at major malls and banks in Singapore

� Build on track record of Paragon and Sky@eleven

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

� Buy and hold attractive infrastructure to ride Singapore’s

PropertyProperty

Strategy

14

� 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

15

� Premier luxury shopping mall along Orchard road, valued at S$2.28bn in Jul 2010

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

� SPH has a 60% stake with NTUC Income and NTUC Fairprice holding the remaining 40%

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

16

� 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

High Operating MarginsHigh Operating Margins

34.5

36.8

38.6 38.239.0

34.8 34.633.2

17

30.5

33.2

2006* 2007* 2008 2009 2010

Operating Margin (%) Operating Margin excluding Sky@eleven (%)

*Restated for applicable retrospective accounting adjustments (FRS 40 & FRS 102)

Remarks: Computed based on recurring earnings

Dividend Track RecordDividend Track Record

26.024.0

27.025.0

27.0

25

30

35

40

(cents) 60

80

100

120

(%)

18

10

15

20

2006 2007 2008 2009 2010

0

20

40

LHS - Dividend per share RHS - Dividend Payout Ratio

^ Reflected on a net basis for comparison purposes

Thank you

Please visit www.sph.com.sg

for more information.