1
2
� Creditable performance from Newspaper and Magazine with 6.3% increase in print advertisement revenue amidst prevailing uncertainties
Recurring earnings better than last year with increase of 26.2% to S$135.1m
HIGHLIGHTS FOR 3Q FY08
2
Group operating revenue posted double digit growth of 19.5%
� Improved performance in property segment with substantial contribution from Sky@eleven (+S$38.1m) and Paragon (+S$3.1m)
3
Revenue recognition to-date : S$149.7m� 4Q FY07 : S$71.3m� 1Q FY08 : S$16.1m� 2Q FY08 : S$24.2m� 3Q FY08 : S$38.1m
HIGHLIGHTS FOR 3Q FY08 (cont’d)
3
Group delivered investment income of S$25.7m despite market turmoil
Y-O-Y decline of 65.9% due to :� Higher profit on sale of investments last year� Income from capital reduction exercise by MobileOne Limited last year
Investment
Sky@eleven
On track for grant of Temporary Occupation Permit (TOP) in FY2010
4HIGHLIGHTS FOR 3Q FY08 (cont’d)
4
Paragon
Healthy rental income growth :���� 12.2% increase in income from
rental and related services
Upward revaluation of Paragon –S$2.0bn���� 10% increase from Jun 07
Property yield expected to maintain at above 4% based on market valuation of S$2.0bn, and above 10% based on equity
HIGHLIGHTS FOR 3Q FY08 (cont’d)
Paragon
Healthy rental income growth :���� 12.2% increase in income from
rental and related services
Upward revaluation of Paragon –S$2.0bn���� 10% increase from Jun 07
Property yield expected to maintain at above 4% based on market valuation of S$2.0bn, and above 10% based on equity
5
(65.9)
(15.6)
19.5
158,020133,399Net Profit
75,31225,666Investment Income
26.2107,056135,103Operating Profit #
288,059344,365Operating Revenue
%S$’ 000S$’ 000
Change3Q FY 20073Q FY 2008
Group
* Restated to take into account the retrospective adjustments relating to FRS 40 – Investment Property# Recurring earnings of the media and property business, including Sky@eleven development
Restated *
FINANCIAL HIGHLIGHTS FOR 3Q FY08
5
6
14.6%
5.1%
10.9%
3.6%
6.4%
8.5%7.5%
5.6%
8.4%
4.3%
11.7%
-1.3%
14.3%
8.5%8.1%7.9%
3.2%
13.8%
8.2%
4.2%
10.9%10.2%10.7%
2.1%
6.8%
3.9%
10.2%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
1QFY07 2QFY07 3QFY07 4QFY07 FY07 1QFY08 2QFY08 3QFY08 YTDFY08
* Classified includes Recruitment and NoticesDisplay Classified* Total
6
SPH Newspaper Advertisement Revenue Y-O-Y Growth %
Display and Classified ads continued to grow despite market uncertainties and a higher base last year
7
-0.7%-2.5%
11.3%
3.4%
-2.3%-4.1%
12.3%
-0.9%
16.6%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
ST SUT BT TNP ZB WB SM BH TM7
Overall circulation levels are sustained
YTD May FY08 Circulation Copies Y-O-Y Growth (%)
8
Driven by expansion into new media and magazine businesses
Headcount for core newspaper business remained flat
Higher variable bonus provision in line with higher operating profits
8
3Q FY2008 Staff Costs increased 13.8%
Annual wage increment followed NWC’srecommendation
9Newsprint Costs
602575
588587
11,82510,96211,37111,155
300
350
400
450
500
550
600
650
4QFY07 1QFY08 2QFY08 3QFY089,000
10,000
11,000
12,000
13,000
14,000
LHS - Prices (US$)RHS - Ave Mthly Consumption (MT)
US$ MT
9
Average Newsprint Charge-Out Price & Monthly Consumption
� Newsprint prices poised to rise further due to :
- Supply crunch further exacerbated by planned curtailment of production capacity by newsprint mills
- Escalating raw material and energy costs
� Impact of higher newsprint prices likely to be significant in FY09
10
� Ad rate increase for 8 newspaper publications, effective 1 Sept 08
• The Straits Times
• The Sunday Times
• Lianhe Zaobao
• The Business Times
• The New Paper
• The New Paper on Sunday
• Berita Harian
• Berita Minggu
���� Most recent ad rate increase in Jan 08
� Rate of increase for Display ranges from 3.5% -8.0%, while that for Classified Display (The Straits Times and The Sunday Times) ranges from 2.7% -9.1%
Advertisement Rate Adjustment
11
0
20
40
60
80
100
120
140
3Q 04 3Q 05 3Q 06 3Q 07 3Q 0825%
27%
29%
31%
33%
35%
37%
39%
41%
Profit before investment income (S$'m) Operating Margin
Print business supporting group operating margin despite new media investments
Note: Comparatives restated to take into account the retrospective adjustments relating to FRS 40 – Investment Property
S$m
11
Recurring Income - Media & Property
Contribution from Sky@eleven
Recurring Earnings (S$’m) OperatingMargin
Operating Margin excluding Sky@eleven
12
���� Launch of Rednano – Singapore’s first local search and directory engine
� SPH Search and Yahoo! announce partnership for global web search capability
Sustaining efforts in New Media investments
12
� JV with the Star Publication (Malaysia) Bhd for provision of digital media services in Malaysia
���� ST701 launches Online Spree shopping
���� Announced foray into Meetings, Incentives, Conventions and Exhibitions (MICE) business through fully owned subsidiary, Sphere Exhibits Pte Ltd
� Formed consortium – OpenNet – for joint-bid to build Singapore’s Next Generation National Broadband Network
���� Launch of Rednano – Singapore’s first local search and directory engine
� SPH Search and Yahoo! announce partnership for global web search capability
� JV with the Star Publication (Malaysia) Bhd for provision of digital media services in Malaysia
���� ST701 launches Online Spree shopping
� Formed consortium – OpenNet – for joint-bid to build Singapore’s Next Generation National Broadband Network
Sustaining efforts in New Media investments
���� Announced foray into Meetings, Incentives, Conventions and Exhibitions (MICE) business through fully owned subsidiary, Sphere Exhibits Pte Ltd
13
- Thank you -