Financial Review Group

Adaptability and customer focus

Face To Face •  FBM Conferences •  FBM Events •  AFR Education •  MIS Round Tables •  BOSS Clubs & “Hear it From”

Financial Review Group Data & Research •  Bespoke category research •  Bespoke Client research •  Database sampling •  Campaign pre & post analysis

Print •  Financial Review •  Life & Leisure •  L&L: Sophisticated Traveller •  L&L: Luxury Magazine • AFR BOSS Magazine •  Financial Review Magazine • AFR: Smart Investor

Magazine • AFR: CFO Magazine • AFR: MIS Magazine • AFR: Asset Magazine • BRW Magazine

Online •  afr.com •  brw.com.au •  afrboss.com.au •  afrmagazine.com •  afrsmartinvestor.com.au • misaustralia.com •  assetmag.com.au •  cfoweb.com.au • AFR Market Wrap http://

marketwrap.afr.com • AFR TV http://tv.afr.com/

Daily newspapers Weekly magazines

USA

UK

Australia

Reach to senior executives

Asia

50.7%

28.3%

16.8%

36.1%

41.6%

AFR

The Australian

WSJ Asia

FT

WSJ

25.2%

22.5%

21.1%

17.8%

BRW

Time

The Economist

Newsweek

Historic high since study started in 2006 (up from

45% last year)

Source: Australian Business Readership Study 2009, IPSOS; international IPSOS studies

Which path?

2 models for audience valueAudience volume model

u Audience volume created by link economy that generates influence

u Revenue defined by reach

u Low level of segmentation

u Profits are secondary

Audience revenue model

u Audience revenue created by loyal interaction with a tightly defined brand or community

u Revenue defined by demographic quality and penetration

u High level of segmentation

u Profits are primary

Content > platforms > audiences

Operating profit FRG against global benchmarks

FT domestic “fully paid” circulation of 55,774 copies down from 89,000 in 2005

AFR circulation currently at 77,046 down from 85,800 in 2005

Source: Pearson annual reports, Audit Bureau of Circulations (UK), Dow Jones annual reports, management accounts

Note: data for Dow Jones no longer available once acquire by News Corp in 2007

-100

-50

-

50

100

150

200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Inde

xed

oper

atin

g pr

ofit

FT Group

FRG

Dow Jones

4

Customers now consume our “media” in many ways

UTILITY

Be informedStay up-to-date

Self-developmentGet “an edge”

QUALITIES FROM SOURCE

ObjectiveAccurateTimely

Reliable in coverageEasy to consume

What the audience want:

FRG PRODUCTS AND SERVICES

NewsAnalysis

Information and dataAnalytical tools

Ability to researchAlerts

Educational coursesConferences, events and

other networking opportunities

What we provide: How customers want to consume:

MEDIA, DEVICES, CONSUMPTION

NewspaperMagazine

PCLaptopMobile

SmartphoneE-tablets

Video on demand and streamed

IPTVFace to face

Stand alone brands

Print based

Daily, Weekly, Monthly

One Masterbrand

Multiplatform

As you need it

Most trusted titles Most trusted relationship

Our publishing process was complex and inefficient

Write stories – remove (Word/email)

Layout Ads (Edition Builder)

Story Planning (manual)

List Management (email/cyber)

Print

Write stories Onsite

(Cyber/Word)

Publish to PDF (Architex)

Place stories/sub Edit/check\

(Cyber)

Layout Pages (Cyber)

Edit stories (Cyber)

Commission graphics (manual)

Archive Create graphics (Adobe/fotoflow/

FDC etc)

Commission photos (manual/email)

Create photos (photoshop)

Newspaper and other Fairfax content

(FDC)

Contribuor copy (Word/email) Reuters wires AAP wires

(Cyber) Graphics

(Adobe/Cyber)

Story Planning (manual)

Write Stories (Word) Publish website Upload stories

(manual) Create HTML

(afr.com) Manage Content

(CMS) Edit Stories (Word/CMS)

Commission Graphics (manual)

Create graphics (Adobe/fotoflow

FDC/ etc)

Commission Photos

(manual/email)

Create photos (photoshop)

Commission puffs

(manual/email)

Create puffs (photoshop/

open ads)

New processes create a single workflow for all product

Story planning (Methode)

News Lists management

Write stories onsite Edit stories

Commission graphics Create graphics

(Adobe)

Layout grid Fit,proof,correct Pre press PUBLISH PRINT

PUBLISH WEB

PUBLISH MOBILE

PUBLISH SYNDICATION

Write stories – remote

Commission graphics Create photos

(photoshop)

Commission graphs Create graphs

(Illustrator)

Edit stories - remote

(Methode) (Methode) (Methode)

(Methode) (Methode)

(Methode)

(Methode)

(Methode)

(Methode) (Methode)

5

Méthode Breaks the silos down and makes editorial investment the centre of a flexible hub for product creation and growth

Before…………………………………….and after Methode

Reporters work across print and on-line. Some subs shared with newspaper Dedicated production

Reporters work across the magazine and on-lineDedicated subs and production

AFR newspaper

afr.com

Business Review weekly

brw.com

FBM finance magazines

New Zealand magazines /sites

Asian magazines / sites

Product System

Cyber

FAST / in house

In Design

In house

In Design

Lotus Notes

Squiz

People / structure / process

Reporters work across print and on-line. Dedicated subs and production

Reporters work across the newspaper and afr.comDedicated subs and production

Reporters work across print and on-line. Some subs shared with newspaper Dedicated production

Reporters work across the magazine and brw.comDedicated subs and production

Reporters work across the magazines and on-lineDedicated subs and production

NewspapersMagazines

Mobile

Web sites devices

Blackberry

iPhone

Syndication The next thing

Product development

Distri- bution

Editing

Production Packaging

Publishing

Content creation

- Documents- Images- Audio

- Video, TV

A single media neutral newsroom with one way of workingContent created once and published dynamically to any media

Teams are aligned to topics

AFR Topic Editor (or BRW Editor)

Channel Producer(s) Reporters

Editorial Leadership

Head of Production

¡  Reporters and Channel Producers report to Topic Editors for all AFR products

¡  BRW is the exception – its own pool of Reporters is managed by BRW Editors

¡  AFR Magazine Editors are aligned to and report to the appropriate AFR Topic Editor

¡  Channel Producers interact and coordinate with production and draw on the shared Production Desk for required resources

¡  In some cases the Topic Editor and Channel Producer roles may be performed by the same person

¡  Topics and Channels do not operate as silos

–  Interaction and Integration of both ideas and resources is driven through the matrix operating structure

–  e.g. the Companies Channel Producer will work with other Topic Editors as appropriate to fill the print/online sections

¡  Editors, Reporters and Channel Producers are all multi-platform as a principle

¡  A part-time Online/Digital Editor exists within the FBM Editorial Leadership team (for 6-12 month transition period only)

–  The end goal is platform-neutrality (i.e. no platform specific roles such as an Online/Digital Editor)

AFR Magazine Editor

Incl. Online/ Digital Editor

Standard editorial roles for each Topic/Magazine

Topic-dependent, according to alignment of magazines with topics

Shared Production Desk

Subs Desk

Graphics & Design

Photos & Video

Key

Magazines Print Edition Production

Companies Markets Tax Resources IT

AFR.com Companies section

AFR print Companies section

BRW.com

BRW magazine Design & Layout

Copy Subbing

Data & Graphics

Photographic & Video

Channels Titles/Sections

& Platforms

Topics Single Production Desk

MISAustralia.com

MIS magazine

AFR.com Information section

AFR print Information section

etc...

etc...

Channel Producer

Channel Producer

Channel Producer

Channel Producer

Channel Producer

Topic Editors

BR

W

Edito

rs M

IS

Edito

rs A

FR S

enio

r Edi

tors

AFR

Pro

duct

Fam

ily

BR

W

‘one way of working’

Process Design Principles Rationale

Operating Efficiency

Product Quality

Product Uniquenes

s

Structure workflows to drive multi-platform behaviour and maximise multi-platform efficiency ü ü

Maximise workflow consistency across titles, platforms and different content types... ü ü

...also recognising the need for some workflow variations (e.g. to maintain product uniqueness) ü ü

Design processes with end-to-end visibility and checkpoints/metrics for transparency and measurement ü ü

Focus all workflows and activities on delivering to editorial deadlines ü ü

Manage quality rigorously by reviewing all content, with clear minimum requirements before publishing... ü

...but provide flexibility to handle time-sensitive breaking news (e.g. online content can be edited after publishing) ü ü ü

Define roles and responsibilities clearly, including predecessor/successor dependencies for each process step ü ü

Minimise hand-offs and maximise opportunities for multi-skilling ü

Avoid bottlenecks to ensure there is no ‘single point of failure’ ü

Build on existing processes and what works well... ü ü ü

...but avoid being tied to the current way of doing things ü ü ü

Maximise the potential of the Methode platform wherever possible ü ü

Streamline/automate tasks wherever possible ü ü

Maximise use of the archive, including contribution of content with appropriate metadata ü ü

10

15

20

25

30

35

40

45

50

55

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11Budget

$m

ActualEBA

FRG editorial costs (Aust) compared to indexed EBA

Life and Leisure lift out

AFR editorial responsibility for Smart Investor and 3 smaller mags

Sophisticated Traveller, Education

Merged editorial responsibility for BRW,afr.com - Marketwrap

More afr.com content incl video

afr.com – Dealbook, Resources Daily

Editorial investment monetised in subscription growth

PAID SUBSCRIPTIONS, FINANCIAL REVIEW ONLINE

3000

3500

4000

4500

5000

5500

6000

6500

7000

4/09/2009

4/10/2009

4/11/2009

4/12/2009

4/01/2010

4/02/2010

4/03/2010

4/04/2010

4/05/2010

4/06/2010

4/07/2010

4/08/2010

4/09/2010

4/10/2010

4/11/2010

4/12/2010

4/01/2011

4/02/2011

Dealbook

Resources Daily

DIY Super

Street Talk Blog

Technology