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23 May 07
Introduction to
Singapore Press Holdings
Updated on March 2015
2
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
3. Is SPH’s newspaper business affected by digital and other
media?
6 – 7
4. What is the impact of government policy measures on the
newspaper business?
8
5. What are the growth areas of the Group? Will SPH expand
overseas?
9 – 16
6. What is the Group’s property strategy? 17 – 20
7. What is SPH’s operating margin and is it sustainable? 21
8. What is SPH’s dividend policy? 22
3
A Leading Media Organisation
Media
Dominant Newspaper publisher in
Singapore and top Magazine
publisher in Singapore & Malaysia
Leading digital news content provider
in Singapore
Digital
Classified
Singapore’s
leading
e-marketplaces for
cars and property
Property
-SPH REIT
-The Seletar Mall
Others
-Media Fund
-Education
Exhibitions
& Events
Consumer and trade
events
Treasury &
Investment
Approx. $1.7b of
investible funds
including M1 (13.9%)
and Starhub (0.8%)
4
Dominant Newspaper Publisher in Singapore
SPH publishes 19 out of 20*
licensed newspapers
in Singapore
Almost 70% 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 has a spectrum of products including the English flagship daily, The Straits Times
(since 1845), and the Chinese daily, Lianhe Zaobao, with a history of more than 90 years.
* SPH owns 40% of Today, a freesheet by MediaCorp
We continue to invest in new initiatives catering to readers’ and
advertisers’ needs
Revamp of our products including The Straits Times, Lianhe Zaobao, Lianhe Wanbao, The New Paper, Berita Harian/Minggu and MyPaper
Launch of tablet and mobile phone versions (iPad, iPhone and Android) for The Straits Times, The Business Times, Lianhe Zaobao and Lianhe Wanbao
Continued subscription campaigns
The Straits Times is Singapore’s #1 mobile news app
Zaobao, Asiaone and MyPaper rank amongst the top 10 most downloaded news apps in Singapore
5
Maintaining high newspaper readership
Source: Nielson Media Research, Media Index
SPH newspapers maintain popularity
and high readership despite
challenging environment
In Singapore, newspapers have more than 50% share of the media ad market
While the proportion of households with internet access (>80%^) is one of the highest globally, the internet’s share of the media ad market remains about 10%*
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 close to 3 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
6
Print vs digital media in Singapore
^ Source: Infocomm Development Authority of Singapore (IDA), IDA’s Annual Survey on Infocomm Usage in Households for 2013
* Source: PricewaterhouseCoopers LLP, June 2014
Daily Average Newspapers Circulation
August 2014
7
Majority of digital
subscribers also
subscribe for print
-1.7%
-7.0%
-9.8% -10.3%
-7.1% -5.9%
-7.9% -7.8%
-10.2%
-8.0%
-2.9%
-7.3%
-9.1% -10.3%
-7.4%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
1QFY14 2QFY14 3QFY14 4QFY14 FY14
Newspaper Ad Revenue Y-O-Y Growth (%)
Display Classified* Total
* Classified includes Recruitment and Notices
Ad revenue slowed as property and transport
sectors continued to face headwind
8
9
Growth Thrusts
Magazines Online
Classified
Events and
Exhibitions
SPH
Property
10
Magazines - A Growth Story
Women’s lifestyle
Singapore
edition
Malaysia
edition
Indonesia
edition
Thailand
edition
Vietnam
edition
Her World – in various countries with customised local content
A leading publisher in Singapore and Malaysia
More than 100 magazine titles in Singapore and the region
70 digital titles
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)
ACP Magazines : Nov 2011 (Singapore, Malaysia & Indonesia)
More than 400% growth in revenue since 2004
Fashion & Beauty
Men’s & Special Interest
Luxury
Custom Publishing
Magazines
VIETNAM
HONG KONG
PHILIPPINES
INDONESIA
THAILAND
From 5 titles in 2003, to over 100 titles in Singapore and beyond 11
SINGAPORE
CHINA
MALAYSIA
12
Web and Mobile
News & Infotainment
www.businesstimes.com.sg
cyberita.asia1.com.sg
Tamilmurasu.tamil.sg
www.straitstimes.com
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
SPH is committed to developing innovative new media platforms that synergise with its traditional media offerings
Razor TV, a novel & interactive web TV. An
initiative to engage audience and capture
new eyeballs
RazorTV Social Networking
www.tnp.sg www.asiaone.com
Apps
Singapore’s leading e-marketplace for cars
13
SgCarmart is the number one car
classified site in Singapore that
offers car listings, car auctions,
valuation and a car forum.
It achieved page views of about
44 million and 1 million unique
visitors*. * As at January 2015
Singapore’s leading e-marketplace for property
14
Streetsine offers real time, relevant and
proprietary information and other
services for efficiently transacting real
estate in Singapore.
It has established strategic
partnerships with 14 major real estate
agencies in Singapore and sees more
than 200,000 listing searches each
month.
15
Regional Online Classified
Expanded classified business into the region focusing on Malaysia and Vietnam
SPH holds a 33.3% stake in mudah.my and chotot.vn, which are the No. 1 classified websites in Malaysia and Vietnam respectively
Joint venture with Naspers to develop platforms in Thailand (18.6% stake) and Indonesia (13.3% stake)
Enterprise value of S$303 million^
As at 1 September 2013
Indonesia
Thailand
16
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)
and covers a wide spectrum of sectors.
Expanding regional presence in Malaysia, Myanmar,
Philippines and Sri Lanka, through acquisition and
bringing homegrown shows to the region.
17
Events and Exhibitions
Consumer
• Baby & Kids
• Tertiary Education
• Events Management
• Food & Electronics
• Furniture & Lifestyle
• Gourmet
• Motherhood
• Technology
• Roadshows
• Weddings
Trade
• Building Technology
• Manufacturing Solutions
• Franchising & Licensing
• Gifts & Stationery
• Office Equipment
• Food & Beverage
• Automation & Laboratory
Conference
• Healthcare
• General Management
• Banking
• Hospitality & Tourism
• Civil Aviation
• Urban Development & Real Estate
18
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 dependent on future opportunities
Property strategy
19
Premier luxury shopping mall on
Orchard road, valued at S$2.6b*
100% occupancy
Suburban retail mall, strategically
located in a good residential catchment
area with high levels of visitation
Valued at S$0.5b*
100% occupancy
Paragon The Clementi Mall
SPH REIT
* Based on latest valuation as at 31 August 2014
Total returns of 25% for maiden year
Delivered a distribution yield of 6.01% to shareholders (based on IPO price of
$0.90 per unit on 24 July 2013)
1. In Jan 2012, SPH won the tender for the Sengkang commercial site at a bid price of S$328m
2. Attractive location:
fast-growing population
good mix of public housing and private homes
upcoming Seletar Aerospace Park
easy access to LRT station and expressways
21
The Seletar Mall
3. Gross development value of S$0.5b*
4. The mall opened on 28 November 2014 with full occupancy
5. Average footfall is above 1 million visitors per month
6. Pipeline asset for injection into SPH REIT
7. Malls usually take at least one to two rental cycles to stabilise and be yield accretive. As The Seletar Mall has just commenced operations, it is still too early to tell when it will be injected into SPH REIT.
* Based on valuation at Aug 2014
22
Healthy Operating Margin
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0
100
200
300
400
500
600
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012(Restated)^
FY2013 FY2014
S$'m Recurring Earnings* and Operating Margin**
Recurring earnings (S$'m) Sky@eleven profits (S$'m) Operating Margin
* This represents the recurring earnings of the media, property and other businesses. ** Computed based on recurring earnings excluding Sky@eleven. ^ With effect from FY2013, the Group changed its accounting policy for investment properties from cost to fair value model. The change was applied retrospectively and accordingly, the comparative financial statements for FY2012 were restated
23
Dividend Track Record
27 24 24 22 21
80.4%
94.4%90.2%
96.2%107.8%
60%
70%
80%
90%
100%
110%
0
10
20
30
40
2010# 2011 2012 2013 2014
(cents)
Interim & Final Div (LHS) Div Payout Ratio* (RHS)
* Computed based on Group recurring earnings net of SPH REIT’s non-controlling interest (S$315m) # FY2010 included profits from the Group’s Sky@Eleven development ^ Excludes special dividend of 18 cents paid pursuant to the establishment of SPH REIT
^
Thank you
Please visit www.sph.com.sg
for more information.
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