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LEARN FROM THE PAST, WATCH THE PRESENT AND CREATE THE FUTURE

Full Year Results – 31 December 2009Australasia's Leading Marketing Content and Communications CompanyF

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KEY THEMES

1. Hard fought result in very challenging environment.

2. Margin firmly in control.

3. Excellent free cash flow.

4. Strong balance sheet.

5. Some exciting developments in further strengthening our portfolio of business.

6. Market share gains in 09 and a “Fitter” business means we are well set for any upturn.

7. Well positioned to exploit group potential – strong start to 2010, on track for a return to growth.

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* STW has a direct and indirect ownership interest in over 70 advertising and communications entities. STW Share takes into account STW’s economic interest in their revenues, expenses, profits and losses of the entities, aggregated on a percentage basis.

31 DECEMBER 2009 FULL YEAR GROUP PROFIT AND LOSS – STW SHARE* ($M)

2009 2008 Change Fav/(Adv)

Revenue 269.2 302.1 (10.9%)

EBITDA 62.8 72.9 (13.9%)

EBITDA Margin 23.3% 24.1% (0.8%)

Underlying NPAT 1 33.1 39.1 (15.4%)

Property Move CostImpairment expense, Amortisation, Losses on Sale

-(11.3)

(5.5)(16.6)

Reported Statutory NPAT 21.8 17.0 27.9%

Fully Diluted Underlying EPS 11.1 cents 20.2 cents

Fully Diluted Statutory EPS 7.3 cents 8.8 cents

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The 2009 final dividend is payable on 12th May 2010 to all Shareholders registered at 28th April 2010

* Total cash dividend as a proportion of Underlying NPAT

Fully Franked Dividend per Share

Cash Dividend Paid as a % of underlying NPAT*

2008 Total Dividend 8.0 cents 39%

2009 Interim Dividend 1.5 cents

2009 Final Dividend 2.0 cents

2009 Total Dividend 3.5 cents 39%

DIVIDENDS

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8.0

6.0

4.0

2.0

0.0

-2.0

-4.0

-6.0

-8.0

2008 2009f 2010f 2011f 2012f 2013f

AUSTRALIAN MEDIA SPEND – YOY% GROWTH

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Source: GroupM

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• Hard fought, credible result• Maintaining leading industry

margins• Leaner business well set to benefit

from any upturn

BIG PICTURE

Revenue Costs

Australia’s Most ProfitableMarketing Communications

Company

• Turmoil• International client

spend especially weak

• Intense / fast action• Close watch

continues

Margin/Share Gain

Cash Flow

• Significant new business wins

• Flight to quality

• Tight control of working capital• Minimise capex• Ongoing focus

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ADVERTISING, MEDIA & PRODUCTION

DIVERSIFIED

2005 2006 2007 2008 2009

33%38% 42% 45% 44%

56%55%58%

62%

67%

DIVISIONAL NPAT EVOLUTION

Move to broaden revenue base continues. % stable in tumultuous times

%

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ADVERTISING/MEDIA PRODUCTION ($M)

AGGREGATED STW SHARE

2009 CHANGE PCP 2009 CHANGE

PCP

227.0 (12.1%) REVENUE 145.0 (10.0%)

59.2 (17.9%) EBITDA 40.1 (14.7%)

26.1% (1.8%) EBITDA MARGIN 27.6% (1.6%)

56.7 (20.2%) OPBT 38.5 (17.6%)

40.0 (19.4%) NPAT 27.2 (17.4%)

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AGGREGATED STW SHARE

2009 CHANGE PCP 2009 CHANGE

PCP

166.5 (13.0%) REVENUE 122.9 (12.3%)

42.4 (7.6%) EBITDA 32.1 (10.4%)

25.5% 1.5% EBITDA MARGIN 26.1% 0.6%

39.6 (10.8%) OPBT 30.2 (14.0%)

27.9 (12.3%) NPAT 21.3 (15.7%)

DIVERSIFIED ($M)

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CHRIS SAVAGE CHIEF OPERATING OFFICER

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6 STAR DASHBOARDKEY INITIATIVES

PEOPLE

PARTNERSHIP

PIPELINE

PRODUCT

PROFESSIONALISM

PERFORMANCE

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10.0

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

People Partnership Pipeline Product Professionalism Performance

2008

2009

2010

AVERAGE SCORE PER PILLARInitial: 6.0Current: 7.1Target: 8.2

6 STAR DASHBOARDPERFORMANCE UPDATE

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6 STAR DASHBOARDKEY INITIATIVES – PEOPLE

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6 STAR DASHBOARDKEY INITIATIVES – PARTNERSHIP

“CONSTELLATIONS”

St. Leonards

St. Kilda Road

Boronia Street

Cooper Street

COMMUNICATION

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6 STAR DASHBOARDKEY INITIATIVES – PIPELINE

Driving the Pipe

Keeping us Fit

Revenue Racer

The Winning Way

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KEY INITIATIVES - PIPELINE

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ACQUISITIONS/START UPS/MERGERS FULL YEAR 2009

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Entity Specialty Previous Interest

Current Interest

Acquisitions

ICRE8 Sales Promotion 36% 51%IM Advertising 49% 70%

Junior Advertising 25% 80%

Start-ups

Campaign & Communications Group

Design / Managing Political Campaigns

20%

DProject Digital Video Production 43%

One20 Digital Photo Production 67%

TaguchiMarketing Broadcast Email System 20%

The Missing Link Print Management 100%

Mergers/ Equity Swaps

Subnine/ IQ Promotion / Events 44% 85%

Savage/ Cannings Corporate PR 49%/100% 80%

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DISPOSALS/DILUTIONS FULL YEAR 2009

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Entity Specialty PreviousInterest

Disposals / Close Downs

BNA Experiential 75%

Generation Alliance Legacy Events 70%

International Quarterback Talent Management 44%

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LUKAS AVIANI CHIEF FINANCIAL OFFICER

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2009 2008

EBITDA pre Impairment / loss on sale 73.7 76.8

Move Costs - 8.7

Underlying EBITDA 73.7 85.5

Working Capital 29.4 (18.1)

Net Interest (8.8) (12.0)

Tax paid (18.0) (16.3)

Other 2.9 (1.3)

Operating Cashflow 79.2 37.8

Capex (4.2) (10.3)

Minority Dividends (8.3) (8.1)

Free Cash Flow 66.7 19.4

31 DECEMBER 2009 FULL YEAR STRONG FREE CASH FLOW($M)

• Free Cash flow benefits from improvement in collections, improved general working capital management and reduced capex.

1 A portion of the working capital improvement is media operations related and may reverse in 2010.

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31 DECEMBER 2009 BALANCE SHEET ($M)

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31 Dec2009

30 June2009

31 Dec2008

Cash (1) 42.0 33.0 43.0

Net working capital (11.7) (7.9) 17.8

Investments 98.6 100.2 110.2

Intangibles 381.6 373.9 341.3

Other Assets 42.3 44.0 41.1

TOTAL ASSETS 552.8 543.2 553.4

Bank Borrowings - Current- Non Current

(0.5)(113.1)

(0.5)(107.3)

(0.5)(205.7)

Deferred Consideration - Current- Non Current

(15.7)(43.8)

(12.7)(51.4)

(14.9)(37.5)

Other Liabilities (11.9) (15.2) (14.1)

NET ASSETS 367.8 356.1 280.7

Net debt: Net Assets (2) 36% 39% 77%

(1) Includes circa $20.0m for media operations (2008: $15m)(2) Net debt for this calculation includes deferred consideration payable.

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31 DECEMBER 2009 FULL YEARDRIVERS OF MOVEMENT IN NET DEBT

Net debt reduced by $91.6m after funding $48.3m of investments

and dividends

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COMMITTED BANK FACILITIES

Maturity $m

Core Australian Facilities Limits

Dec 2010 119.0

July 2011 143.0

Total Core Australian Facilities 262.0

NZ Facilities Limits

June 2011 $A4.5

Lease Facility Dec 2013 $2.3

Total Group Facilities $A268.8

Drawn $113.6

Undrawn $155.2

Net Debt $71.6

* Rolling 12 month test

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Ratios 31/12/09 31/12/08 Covenant

Debt to EBITDA* 1.7x 2.5x < 3x

Interest Cover* 6.1x 5.2x > 5x

Debt:Equity 35.9% 52.4% < 55%

* Banking facility definition basis

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FUTURE EARN-OUT PAYMENTS ($M)

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On BalanceSheet

Off Balance Sheet

Total at Dec 09

Totalat June 09

2009 - - - 9.0

2010 16.5 - 16.5 21.9

2011 34.8 10.3 45.1 37.7

2012 4.2 3.9 8.1 11.7

2013 and later 12.6 - 12.6 15.5

TOTAL @ FV 68.1 14.2 82.3 95.8

TOTAL @ PV 31 Dec 09 59.5 12.7

TOTAL @ PV 31 Dec 08 52.4

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KEY THEMES

1. Hard fought result in worst year in living memory.

2. Margin firmly in control.

3. Excellent free cash flow.

4. Strong balance sheet.

5. Some exciting developments in further strengthening our portfolio of business.

6. Market share gains in 09 and a “Fitter” business means we are well set for any upturn.

7. Well positioned to exploit group potential – strong start to 2010, on track for a return to growth.

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2010 OUTLOOK RETURN TO GROWTH

• Strong momentum: optimistic outlook.• Our businesses are stronger.• Our focus is 100% external.• New revenue pipeline is robust.• Cost base sustainably lower.• January revenues encouraging.• Our goal: double digit NPAT growth.

However …• Economic conditions still uncertain• Firmer outlook at May AGM

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Appendix

2010 Forecast Media Spend

2009 Media Scene Spend

2010 Media Scene Outlook

STW Full Year 2009 NPAT

STW Holding Company Costs

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% SHARE OF MEDIA – 2010 FORECAST (AND YOY CHANGE)

Interaction total – (1.6%)19%

Outdoor/transport – (0%)4%

Cinema – (0%)1%

Magazines – (0.2%)7%

Newspapers – (1.0%)31%

Radio – (0.2%)8%

TV – (0.2%)30%

Source: GroupMFor

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FTA TV -13.2% / $427m

Newspapers -14% / $177m

Pay TV +2.5% / $8m

Digital +7% / $30m

Out of Home -9% / $41m

Magazines -25.5% / $141m

Radio -7.1% / $32m

AUSTRALIAN MEDIA SCENE% CHANGE BY SEGMENT 2009

-12.4% / $803m

Source: Ikon Communications

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FTA TV +5% / $112m

Newspapers -2% / $21m

Pay TV +5% / $28m

Digital +15% / $70m

Out of Home +5% / $20m

Magazines -10% / $41m

Radio Flat

AUSTRALIAN MEDIA SCENE2010 MARKET PREDICTIONS

3.8% GROWTH*

Source: Ikon Communications* Average of 13 investment analysts and media outlets

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31 December 2009 Full Year GROUP PROFIT AND LOSS – UNDERLYING NPAT*

($m) 2009 2008 Change

Advertising, Media & Production 27.2 33.0 (17.4%)

Diversified 21.3 25.3 (15.7%)

Hold-Co - Interest- Head office cost

(9.3)(6.1)

(13.4)(5.8)

Group 33.1 39.1 (15.4%)

*Proportional Share

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HOLDING COMPANY ($’m)

AGGREGATED STW SHARE

2009 CHANGE PCP 2009 CHANGE

PCP

1.6 35.0% REVENUE 1.3 59.2%

(10.1) (3.0%) EBITDA (9.4) 5.3%

(22.9) 18.2% OPBT (21.4) 22.6%

(16.5) 14.3% NPAT (15.4) 19.3%

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