SCMP GROUP LIMITED 2006 INTERIM RESULTS Nancy Valiente Chief Financial Officer 31 August 2006

Strong first half results Growth 9% 28% 30% 20% Turnover Recurring operating profit Operating profit Net profit Basic EPS (HK cents) DPS (HK cents) (In HK$m, unless stated otherwise) For the six months ended June 30

Newspaper Magazines and books Investment properties Video film Music publishing Total (1.8) (In HK$m) (3.4) (5.9) % Change 2005 EBITDA Operating Profit Better performance across most Group businesses For the six months ended June 30 % Change

Focus on core business Revenue: $583 millionOperating Profit: $181 million

H 9% Newspaper publishing achieved good results Net profit Operating profit Revenue H H % 27%

Staff costs Production costs Rent & Other opex A & P Operating costs increased 5% (+23%) 90 (+2%) (+7%) (+3%) (in HK$ million) 64 88

2005 1H average US$545  Average cost up 11%  Consumption flat  July order at US$625 Newsprint cost continue to rise H average US$604 (In US$ per MT) FY2005 average US$563

No major change in cost structure 1H 20061H 2005 Staff costs 49% A&P 4% Rental & utilities 4% Other production costs 12% Newsprint 11% Staff costs 48% A&P 4% Rental & utilities 5% Other production costs 12% Newsprint 11% Other opex 20% Other opex 20% * Above breakdown is based on operating expenses before depreciation & amortization

Margins improved EBITDA margin 1H H 2006 Group Operating profit margin 1H H 2006 Group 1H H 2006 Newspaper 1H H 2006 Newspaper

Capital expenditures 1H Actual : $11 million2H Budget : $30 million Computer equipment Systems upgrade Publishing system $2m$3m $2m $1m Production equipment Others Computer equipment Systems upgrade Publishing system Production equipment Others Renovations $3m $5m $6m $7m $3m

Our financial goals EPS – before EI (in HK cents) FCF (in HK$ million) ROIC % DPS (in HK cents) Payout % * 87* * Regular dividend. A special dividend of $0.03 cents per share was also paid. 1H

, ,560,945,596 Balance Sheet Highlights , ,560,945,596 Change (21) - 25 (16) 4 (20) 22 - Fixed assets Investment properties LT investment shares Bank balance & deposits Borrowings Net cash Net assets NAV per share (HK$) No. of shares in issue (In HK$m, unless stated otherwise) Unaudited 30 June 2006 Audited 31 Dec 2005

Business Review

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Most trusted by the business community Source: Ipsos Media Asian Business Readership Survey (ABRS) 2006 Report Over 25% of Hong Kong’s top business executives consider the South China Morning Post to be trustworthy

Most worthy of people’s time Source: Ipsos Media Asian Business Readership Survey (ABRS) 2006 Report Around 28% of Hong Kong’s top business executives say they make time to read the South China Morning Post

Most important current affairs read Source: Ipsos Media Asian Business Readership Survey (ABRS) 2006 Report Nearly 27% of Hong Kong’s top business executives rate the South China Morning Post as the most important current affairs read

Most important business read Source: Ipsos Media Asian Business Readership Survey (ABRS) 2006 Report Nearly 22% of Hong Kong’s top business executives rate the South China Morning Post as the most important business read

Efforts to improve editorial quality continue  Editor-in-chief appointed in March  New business editor appointed in May  Other new hires in business section  Regular public opinion surveys and breakfast briefings  30 industry awards in first half

Circulation is stable Note: Audited except 1H , ,782 1H2H1H2H Weekday ,964 1H ,552104, ,362 82,208 Sunday 1H2H1H2H 81,099 1H 81,453 80,000

 Around 20,000 subscribers 68%HK 10%US 5%China  69.5% renewal rate  Site page views up 30% SCMP.com Podcast Downloads

Newspapers have second highest share of ad spend 1H 2006 ad spend : $23.3 billion TV 40% Newspapers 34% Magazines 17% Others 3% Wall signage 1% Radio 3% MTR 2% Source: Admango. Based on gross rates. Excludes regional titles

Display advertising outperforms market  Revenue up 11% vs. 8%* for all newspapers  Yield up 5%  Volume up 4% Rate increase in premium positions Color adsNew formats Special executions Special supplements *Source: Admango 2006 Report. Based on rate card, not negotiated rates

More color ads In terms of revenueIn terms of volume 1H H 2006

Recruitment advertising is stable  Total no. of positions advertised in print media down 5% in 1H*  5% growth in Q1 not sustained in Q2  Yield up 2% (CP) and 7% (Jiu Jik) Editorial enhancements Website enhancements Special supplements *SCMP / Nielsen Media recruitment marketing survey 2006 Work in progress

Strong growth in notices  Notices revenue up 47%  Results announcements make up 6% of ad revenues in 1H 2006  HK Stock Exchange Exposure Conclusion - Companies without website must continue to publish full announcement in newspaper - Companies with website Phase 1 – publish notification in newspaper Phase 2 – not required to publish notification - All companies must have website one year after Phase 1 starts - Earliest implementation – Jan 07

Magazines benefit from growth in ad spend  Operating profit up 32% on 5% growth in revenue  Strong results from Cosmo, Harper’s Bazaar  Cosmo still the leading international women’s title in the market. Audited circulation in 2005 of 49,188 copies (up 17%)  Pressure on cover price

 TV City application still pending  Leighton Road billboards contributing since April Investment Properties

Outlook  Stable economic conditions expected in second half  Competition mostly affecting Chinese papers  Concerns about newsprint cost, salaries and rent  Abolition of rules on results announcements to affect revenue  Investing in digital media capabilities  Good corporate governance