Introduction to Introduction to Singapore Press Holdings Singapore Press Holdings

Introduction to Introduction to Singapore Press Holdings Singapore Press Holdings

1

23 May 07

Frequently Asked QuestionsFrequently Asked QuestionsReference 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 – 6

3. Is SPH’s newspaper business affected by digital and other media?

7 – 8

4. How has SPH’s newspaper ad revenue been performing? 9

2

5. What are the growth areas of the Group? Will SPH expand overseas?

10 – 18

6. What is the Group’s property strategy? 19 – 20

7. Why nursing homes? 21 – 22

8. What are the objectives and returns of the Treasury and Investment business?

23 – 24

9. What is SPH’s operating margin and is it sustainable? 25

10. What is SPH’s dividend policy? 26

A Leading Media Organisation

MediaDominant Newspaper publisher in

Singapore

Leading digital news content provider

3

Leading digital news content provider in Singapore

Top Magazine publisher in Singapore & Malaysia

Digital Classified

Singapore’s leading e-

marketplaces for cars and property

Property-SPH REIT

-The Seletar Mall

Others-Media Fund

- E-Commerce

-Education

- Healthcare

Exhibitions & Events

Consumer, trade conference events

Treasury & Investment

Investible funds exceed $1b

Dominant Newspaper Publisher in SingaporeDominant Newspaper Publisher in Singapore

SPH publishes all 17licensed newspapers

in Singapore

SPH has a spectrum of products including the English flagship daily, The Straits Times (since 1845), and the Chinese daily, Lianhe Zaobao (since 1926)

4

In Singapore, newspapers has the highest share of the

media ad market

On an average day, 2.4 million* people or 56 per

cent of those above 15 years old, read one of SPH's news

publications in print or digitally

Source: Nielsen Media Index 2017, Monday-Sunday, read any SPH newspapers in print or digital format

We continue to invest in new initiatives catering to readers’ and advertisers’ needs

Constant refreshing of our products including The Straits Times, Lianhe Zaobao, Lianhe Wanbao, TheNew Paper and Berita Harian/Minggu. Notable examples include revamp of Zaobao and Straits Times inJuly 2016 and July 2015 respectively

Launch of tablet and mobile phone versions (iPad, iPhone and Android) for The Straits Times, TheBusiness Times, Berita Harian, Lianhe Zaobao, Lianhe Wanbao and Shin Min Daily News

Extending international reach of flagship through digital subscription

The Straits Times is Singapore’s #1 mobile news app

Maintaining Maintaining high readershiphigh readership

Zaobao and Asiaone also rank amongst the most popular news apps in Singapore

Invested in capabilities such as digital, data analytics, and content marketing to meet evolving needs ofreaders and advertisers

5Source: Nielson Media Research, Media Index

SPH newspapers maintain popularity and high readership

despite challenging environment

Maintaining high Maintaining high readership (Cont'd)readership (Cont'd)

News & Infotainment

SPH is committed to developing innovative new media platforms that synergise with our traditional media offerings

www.asiaone.comwww.businesstimes.com.sgwww.straitstimes.com

6

AppsSocial Networking

www.beritaharian.sgwww.tnp.sg www.tamilmurasu.com.sgwww.zaobao.sg

www.stirr.sg

www.kiss92.sg

www.sgsme.sg

www.onefm.sg

In Singapore, newspapers have more than 40% of the media ad market.Digital media has seen rapid growth in recent times.

SPH has transformed its print and digital media strategy over the years

Locals frequently visit international websites, which makes online advertising very long tail

Effectiveness of our print and digital products reaches more than 2.4 million individuals daily

Print Print vsvs digital media digital media in Singaporein Singapore

individuals daily

Our Integrated Marketing Division (IMD) that provides advertisers with a more effective and multi-platform reach to their audiences.

We are improving our regional reach and flagship products beyond Singapore through digital subscriptions

7

Daily Average Newspapers CirculationAugust 2017

Majority of digital subscribers also subscribe for print

88

1 With effect from 1 March 2016, all subscriptions to our All-in-One packages are counted as the sale of one print copy and one digital copy. Prior to 1 March 2016, such subscriptionswere counted as the sale of one print copy and three digital copies, in line with Audit Bureau of Circulation’s (ABC) rules. With the implementation of new cover prices of our newspapersand All-in-One packages on 1 March 2016, we have had to change the basis of our circulation count and have obtained ABC’s endorsement for the new method. For comparativepurposes, copy sales for Aug-15 had been restated accordingly.

Advertising market remained weak

-10.0%

-5.0%

0.0%

5.0%Newspaper Ad Revenue Y-O-Y Change (%)

9

-16.0%

-19.3%

-21.5%

-18.0%-18.6%

-12.5%

-16.6%

-21.6%

-20.2%

-17.9%

-15.0%

-18.5%

-21.5%

-18.7% -18.4%

-25.0%

-20.0%

-15.0%

1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY2017

Display Classified* Newspaper Ad

* Classified includes Recruitment and Notices

Property Events andExhibitions

Magazines Aged CareMagazines

M1

MindChamps

Regional Online

Classifieds

Classifieds

SPH Ventures

10

Magazines

11

Singapore

Men's NetworkMen’s Health

HWMTorque

Luxury CircleThe Peak

The Peak Selections: Gourmet & Travel

ICONICON Moments

Magazines 83 Brands, 30 Websites, 109 Digital Editions across 9

countries

MalaysiaEH!

Female

GLAM

GLAM Deko

GLAM Lelaki

Golf Digest

Her World

Her World Cookbook

Home & Décor

HWM

ICON

IndonesiaFemale

Female Brides

Her World

Her World Brides

HWM

The Peak

Home & Décor

CLEO

Luxury Properties

China & Hong Kong

Women'sNetwork

FemaleHer World

Her World BridesHer World Brides LUXE

NuyouShapeCLEO

The Singapore Women's

Focus Publishing

U-Weekly (UW)Health No. 1

Wellness No.1Yummy Guide

AMK town councilEDB

OnenessPetir

iGombakYuhua

ICON MomentsLuxury Insider

Marie Claire

Nuyou

Shape

The PeakThe Peak Selections:

Timepieces

YTL LifeThe Malaysian Women's

Weekly

CLEO

Harper's BAZAAR

Citta Bella

Cosmopolitan

KongAction Asia

AsiaSpa

Asia-Pacific Boating

China Boating

JET Asia-Pacific

The PeakThailandHer World

VietnamHer World

IndiaAsiaSpa

TurkeyAsiaSpa

Custom Content Solutions

NSMANSavour

SilverKrisSingapore Health

Singapore NautilusWinning PostFraser Cachet

Singapore MagazineFrontline

The Singapore Women's Weekly

Harper's BazaarThe Finder

Home & DecorYoung Parents

Young Parents Pre-school Guide

YuhuaNortheast CDC

PhilippinesHWM

12

Singapore’s leading e-marketplace for cars

13

sgCarMart is the number one carclassified site in Singapore thatoffers car listings, car auctionsand valuations, and a car forum.

It achieved page views of morethan 50 million and 1 millionunique visitors.

14

• Top car classifieds site in Singapore

• Profitable• >50m monthly page views

and 1m unique visitors

• Another popular car classifieds site in Singapore

Singapore’s leading e-marketplace for property

Streetsine offers real time, relevant, and proprietary information and other services for efficiently transacting real estate in Singapore.

It has established strategic partnerships with major real estate agencies in Singapore and sees more than 200,000 listing searches monthly.

15

SRX is the authoritative source for Singapore real estate

16

Events and ExhibitionsEvents 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)

wide spectrum of sectors (Baby & Kids, Gourmet & Festivals, Food, Manufacturing and Technology)

17

Expanding regional presence in Malaysia, Myanmar, Indonesia and Thailand, through acquisition and strategic partnerships by bringing homegrown shows to the region.

000

Events and ExhibitionsEvents and Exhibitions

Consumer

• Baby & Kids• Tertiary Education• Events

Management• Food & Beverage• Festival• Gourmet

Trade

• Building Technology• Manufacturing

Solutions• Facilities

Management• Franchising &

Licensing• Gifts & Stationery

Conference

• Banking & Finance• Hospitality

Investment• Civil Aviation• Conference Services

18

• Gourmet• Technology• Roadshows

• Office Equipment• Food & Beverage• Printing, Packaging

& Signage

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

Property strategyProperty strategy

19

Property yields and capital appreciation to boost Group’s total returns

Property projects are opportunistic

Property PortfolioProperty Portfolio

• Net Property Income (NPI) grew 4.9% to S$188.3m.

• All 3 malls continue to provide recurrent income stream.

• Market value for Paragon (freehold), The Clementi Mall and The Seletar Mall at S$2.85b, S$583m and S$490m respectively.

ParagonParagon The Clementi The Clementi MallMall The Seletar The Seletar MallMall

20

Changi120 bedsRetrofitted

Marsiling234 bedsPurpose Built

Top 3 nursing home operator (1)

in Singapore

5 homes with 900 beds (not

including Balestier)

600+ beds located in

optimally sized purpose built

facilities located on 30-year

Orange Valley at a Glance

Simei242 bedsPurpose Built

Clementi267 bedsPurpose Built

Sims46 bedsRetrofitted

leasehold properties

Remaining av. bed tenure >

15 years

Average occupancy of 90%

Only private nursing home fully

run by professional managers

Vertically integrated operations

Employs c.460 people

Balestier116 bedsA&A

(1) By # of beds

21

Enterprise 50 Award

ISO 9001-certified since 2002Successful re-certification of ISO:9001 (Quality Management System) and conversion to 2015 Standard

Singapore Health Quality Service AwardGarnered 8 silver awards in 2016; 23 silver awards in 2017

Intermediate and Long-Term (ILTC) Excellence Awards 2016

Orange Valley has Won a Range of Awards/Certifications in Recognition of its Clinical and Service Quality and

Innovations

22 22

Ranked 4th and 8th in 2015 and 2016

Singapore 1000 AwardPresented with the Singapore 1000 Award in 2016 which recognises the most outstanding business performances in the country

Excellence Awards 2016Awarded “Team Award (Merit) for Clinical Quality Improvement” for the Kampong Project at Sims Avenue.

Group investible fundGroup investible fund

38.5%19.3%

Group Investible Fund(S$1.1b)

• Conservative stance maintained on investment allocation, focused on capital preservation

23

4.6%37.6%

Equities Bonds

Investment Funds Cash and deposits

(As at August 31, 2017)

• Returns are expected to be commensurate with low risk-return profile to mitigate against volatility

Period in years^

Portfolio Investment PerformancePortfolio Investment Performance

4.3%annualised return since

inception

6.5

5.5

1

5

^ As at August 31, 2017

24

Good Operating MarginsGood Operating Margins

25%

30%

35%

40%

45%

250

300

350

400

450

S$'m Recurring Earnings and Operating Margin

25

0%

5%

10%

15%

20%

0

50

100

150

200

FY2013 FY2014 FY2015 FY2016 FY2017

Operating Profit^ Operating Margin^

^ Excluding impairment charges on goodwill and intangibles, and property, plant and equipment

96.2%

107.8%102.1%

109.1%

145.7%

100.0%

120.0%

140.0%

160.0%

20

25

30

(cents)

Dividend Track Record

22 21 2018 15

20.0%

40.0%

60.0%

80.0%

10

15

20

2013^ 2014 2015 2016 2017

Interim & Final Div (LHS) Div Payout Ratio* (RHS)

* Computed based on Group recurring earnings net of non-controlling interests of the Property segment^ Excludes special dividend of 18 cents paid pursuant to the establishment of SPH REIT

2626

Thank you

Please visit www.sph.com.sg

for more information.