IN CREDIBILITY WE TRUST

3 March 2012

CHANGE or PERISH!

2011 IBM Global CMO Study

• First-ever global CMO study• Face-to-face conversations with more than 1,700 CMOs worldwide in 64 countries

4 BIGGEST CHALLENGES1. Explosion of Data2. Social Media (Platforms)3. Proliferation of Channels & Devices4. Shifting Consumer Demographics

2011 IBM Global CMO Study

For the first time, US Online ad spending will overtake Print in 2012

MALAYSIA?

2005-06

2006-07

2007-08

2008-09

2009-10

2010 (2H)

2011 (1H)

0

100,000

200,000

300,000

400,000

500,000

600,000

BHarianUtusanMsiaKosmoHarianMetroBMingguMingMsiaKosmoAhdMetro Ahd

Total Net Circulation: Bahasa Newspapers Pen. Msia 2005 – 2011 (1H)

2005-06

2006-07

2007-08

2008-09

2009-10

2010 (2H)

2011 (1H)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

New StTimesThe Star The EdgeNewSunTSundayStarThe SunMsiaSME

Total Net Circulation: English Newspapers Pen. Msia 2005 – 2011 (1H)

2005-6

2006-7

2007-8

2008-9

2009-10

2010 (2H)

2011 (1H)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

SinChew DSinChew NChinaPress DChinaPressNGuangMing DGuangMing NOriental DN

Total Net Circulation: Chinese Newspapers Pen. Msia 2005 – 2011 (1H)

Total Net Circulation: English Newspapers Sabah 2005 – 2011 (1H)

2005-06

2006-07

2007-08

2008-09

2009-10

2010 (2H)

2011 (1H)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

DailyExpressDailyExpressSunBorneoPostSabahNewSabahTimesNewStTimesNewSunTimesStarSundayStar

Total Net Circulation: Chinese Newspapers Sabah 2005 – 2011 (1H)

2005-06

2006-07

2007-08

2008-09

2009-10

2010 (2H)

2010 (1H)

0

5,000

10,000

15,000

20,000

25,000

30,000

OCDNOCDN SunMorningPostAsiaTimesSeeHuaDNMerdekaDN

Total Net Circulation: Bahasa Newspapers Sabah 2005 – 2011 (1H)

2005-06

2006-07

2007-08

2008-09

2009-10

2010 (2H)

2011 (1H)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

BHarianBMingguUtusanBorneoSabahUtusanMsiaMingMsiaHarianMetroMetroAhd

2005-06

2006-07

2007-08

2008-09

2009-10

2010 (2H)

2011 (1H)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

BorneoPostNew StTimesSundayPostNewSunTStarSunStar

Total Net Circulation: English Newspapers Sarawak 2005 – 2011 (1H)

Total Net Circulation: Chinese Newspapers Sarawak 2005 – 2011 (1H)

2005-06

2006-07

2007-08

2008-09

2009-10

2010 (2H)

2010 (1H)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

SHDNUnited DNUnited SunInt'l TimesSinChew

Total Net Circulation: Bahasa Newspapers Sarawak 2005 – 2011 (1H)

2005-06

2006-07

2007-08

2008-09

2009-10

2010 (2H)

2011 (1H)

0

5000

10000

15000

20000

25000

30000

35000

40000

UtusanBorneoBHarianBMingguUtusanMsiaMingMsiaHarianMetroMetroAhd

• SURGE IN INTERNET PENETRATION 80% (25 mill users) by 2015 vs. current 61.7% of population • WIRELESS CONNECTIVITY Smartphones-Tablets & Mobile Apps will be the norm

• SIMILAR TREND - Online media will overtake mainstream media - Migration of automotive, property & job ad categories

NEW MEDIA ORDER

Internet 189,563,067 33,268,882 40,445,741 52,148,925 63,699,519

14,979,765,165 3,320,831,545 3,407,826,318 3,893,141,757 4,357,965,545Newspapers

Grand Total 15,169,328,232 3,354,100,427 3,448,272,059 3,945,290,682 4,421,665,064

Grand Total 2008 2009 Y2010 Y2011

Index 100 102 117 131

Index 100 122 157 191

Internet monitored: 1. Yahoo Malaysia 2. MSN Malaysia 3. Forbes Malaysia 4. Utusan Online.Kosmo Online & Mangga Online, Saji Online & Tutor Online 5. Sinchew-1. GuangMing Online. Sin Chew Online. Soccerfanz & mysinchew 6. The Star Online & Parenthots.com (since Jan 09)

Newspapers monitored: 37 titles in Pen Msia + 16 titles in East Msia

Source: AC Nielsen ADEX

MALAYSIA: Newspapers vs. Online ADEX 2008-2011

NEW BALL GAME

NEED TO ADAPT TO STAY IN THE GAME

HERE IS HOW• Rewrite the rules by which we operate

• Refine reporting format so that decision makers can better judge the true worth of a publication

• Reorientate our mainstream media focus

UNTIL NOW

One Dimensional

UNTIL NOW GOING FORWARD

One Dimensional Two Dimensional

CIRCULATION REPORTING STANDARDS(Until now known as ‘Audit Rules’

Circulation standards for FREE newspapers & magazines

Digital replica for newspapers (paid & free)

Digital replica for magazines (paid & free)

Major revamp of circulation standards for magazines

FOR IMPROVED CLARITY, CONSISTENCY AND ACCOUNTABILITY

NEW

NEW

NEW

NEW

Affiliate of International Federation of Audit Bureau of Circulation

ABC PUBLICATION – DAY EDITION

ABC PUBLICATION

End Users: Greater certainty in judgement ROI Media Owners: Stamp of approval for business integrity ABCM: The Gold Standard