SINGAPORE PRESS HOLDINGS. 3Q FINANCIAL RESULTS 11 July 2007

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1 1 SINGAPORE PRESS HOLDINGS 3Q FINANCIAL RESULTS 11 July 2007

2 FINANCIAL HIGHLIGHTS FOR 3Q FY07 2 Print advertisement revenue for 3Q surged 10.4% Operating expenses up 5% in line with stronger operating results & continual investment in new media initiatives Operating profits up 15.2% Investment income for 3Q more than doubled to $75.3m

3 FINANCIAL HIGHLIGHTS (cont d) 3 3Q FY 2007 Group 3Q FY 2006 Change S$ 000 S$ 000 % Operating Revenue 288, , Profit before Investment Income and Exceptional Items # 108,822 94, Net Income from Investments 75,312 31, Profit before Exceptional Items 186, , Exceptional Items - 69,149 (100.0) Profit Attributable to Shareholders 159, ,645 (8.5) # This represents the earnings of the media and property businesses on a recurring basis.

4 4 SPH Newspaper Advertisement Revenue Y-O-Y Growth % Positive trends for Display and continued growth of Classified 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% -7.5% 9.3% -1.0% -5.7% 8.0% -0.2% -3.0% * Classified includes Recruitment and Notices 7.2% 0.9% -1.3% 7.9% 2.1% 4.3% 3.9% 3.2% 11.7% 8.1% 10.2% 4.7% 6.6% 5.5% 3QFY06 4QFY06 FY06 1QFY07 2QFY07 3QFY07 YTDFY07 Display Classified* Total

5 YTD FY2007 Circulation Copies Y-O-Y Y Y Growth (%) % 5.5% 6.5% 5.0% 0.0% -5.0% -1.1% -0.6% -1.4% -1.8% -2.7% -3.7% ST SUT BT TNP BH LHZB LHWB SMDN

6 SPH Group 3Q FY Cost increase well-managed Operating Revenue Total : $22.4m (8.4%) Operating Revenue & Costs $ m $2.8m $1.6m $0.4m $18.4m (+28.2%) (+6.6%) (-0.8%) (+10.4%) Costs Total : $8.6m (5.0%) $1.6m $1.9m $0.0m $8.3m (-2.9%) (+8.1%) (-0.1%) (+12.0%) 0 FY07 FY06 FY07 FY06 Advertisement - Print Rental & Services Staff Cost Other Production Cost Circulation Others Newsprint Others

7 3Q FY2007 Staff Costs 7 Variable Bonus Provision ~ Higher operating profits ~ New performance-based incentive scheme Staff Costs increase (12.0%) Headcount (May FY2007: 3,684; May FY2006: 3,583) ~ New subsidiaries ~ New print and online initiatives Annual Increment ~ Follow NWC s recommendation of 4-5% on average

8 Newsprint Costs 8 Average Newsprint Charge-Out Price & Monthly Consumption , ,166 10,812 10,783 11,323 12,000 11, ,054 10, QFY06 4QFY06 1QFY07 2QFY07 3QFY07 LHS - Prices (US$) RHS - Ave Mthly Consumption (MT) 9,000

9 Recurring Income - Media & Property # 9 Sustaining an operating margin of around 35% % Profit before investment income % 30% 25% 20% 15% Operating Margin (%) 50 YTD Q3 03 YTD Q3 04 YTD Q3 05 YTD Q3 06 YTD Q % Profit before investment income Operating Margin # Profit before investment income

10 Moving ahead 10 Expanded contract publishing business Further consolidation under SPH Magazines for greater resource efficiency and content synergy HardwareZone garnered numerous accolades: i) No. 1 Online Media award for IT News, Marketing Magazines ii) 3 Top awards, Hitwise (Hardware, IT Media, Net Communities and Chat) iii) Highest campaign placement - May, AdRelevance

11 Moving ahead 11 Marked 1st anniversary with monthlong celebrations Widened reach to readers via multimedia platform Exploring further working opportunities with advertisers Top 10 advertising portals for IT, finance and business news - Marketing Magazines AsiaOne clinched Top 5 positions in all 3 categories

12 Investing in New Media 12 Expanding ST701 s market share through coordinated efforts in print, online and outdoor media 1st year with phenomenal growth Over 70 m page-views recorded to date Reinforced positioning as leading local citizen journalism site Constantly generating new ideas and be on top of what s the latest interest on the Net

13 Investing in New Media 13 Aim to provide Singapore s first online search engine focusing on all things local Launched nation-wide business data collection drive to build and expand database Potential regional projects identified Total investment by SPH expected to be around $50m New generation newsstands launched in June 2007 to better reach out to consumers Synergies with the Company s print and radio operations Plans to establish new buzz pods islandwide. 8 already in operation. SPH Buzz pod

14 Investing in New Media 14 Increased application download and zap rate Extensive advertising and promotion plans launched Continue to extend its outdoor advertising network with new site acquisitions - Cairnhill Place - The Arcade - Funan DigitaLife Mall - Chinatown Point - Lucky Plaza lamp-posts - SPC petrol stations Reactrix, a high-impact advertising medium, was launched as another choice offering to advertisers.

15 Properties 15 Construction is underway Recognition of profits depends on construction progress Upward revaluation of Paragon - $1.82bn (20% increase from Jun 06) Rental yield expected to be healthy amidst strong sentiments in the property market Property yield expected to maintain at above 4% based on market valuation

16 ~ Thank you ~ 16