Growth Strategies in the Asian Region FIPP Seoul Conference, April 2002 Presented by John Alexander CEO of PBL Media and ACP Publishing Growth Strategies in the Asian Region FIPP Seoul Conference, April 2002 Presented by John Alexander CEO of PBL Media and ACP Publishing

Contents  Overview of PBL  ACP and its competitive position in the Australian magazine sector  ACP and its Asian operations  Expansion opportunities in Asia for ACP

1. Overview of PBL Crown merger & ecorp float % of Foxtel acquired 1998 PBL established (Merger of ACP & Nine Network) 1994 Control of Nine Network regained 1990 Nine Network sold to Bond Media 1987 News- paper business sold 1972 Nine Network established 1960 Sydney Broadcasting License acquired 1956 Our History to Date: ACP established 1933

BusinessMarket Position Market Share Nine NetworkNo. 140% Advertising Market ACPNo. 144% Circulation CrownNo. 175% Australian VIP market ecorpNo. 177% Penetration FoxtelNo. 170% Pay TV market PBL is the market leader in each of our core operations 1. Overview of PBL cont’

Business Audience Statistic Nine Network Between 4-8 million viewers each evening ACP 13 million readers annually Crown 10 million visitors annually ecorp 5.8 million unique visitors per month Foxtel 780,000 subscribers Fox Sports1.2m subscribers Over 10 million Australians come in contact with a PBL product or service on any given day 1. Overview of PBL cont’

 Australia:  65 titles  44% circulation share 2. Overview of ACP  New Zealand:  22 titles  42% circulation share  Asia:  10 titles  Singapore, Malaysia, Taiwan and Thailand

2. Overview of ACP cont’  ACP has performed well against this trend due to three-year restructuring process:  Revenue increased by 4.9% to AUD$292 million in six months to 31 December 2001 over previous corresponding period  Double-digit bottom-line growth expected for the full 2002 financial year  39% of advertising market share, up from 36% last year

3. ACP in Asia Pacific – New Zealand  Very similar legal and cultural environment to Australia  Largest magazine publisher with 49% advertising market share and 22 leading titles  ACP provides cross-promotional support to Prime NZ free-to-air television network, in which PBL has a 50% option to buy

CountryOwnership Singapore Singapore Women’s WeeklyACP CleoACP FinderACP Harper’s BAZAAR50:50 joint venture with Hearst Malaysia Malaysian Women’s WeeklyACP CleoACP FinderACP Harper’s BAZAAR50:50 joint venture with Hearst Thailand Cleo49:51 joint venture with Hachette/The Bangkok Post Taiwan Cleo30:70 joint venture with Hwa Ker Publishing 3. ACP in Asia

Factors for success:  Ability to translate the formula of Cleo and Women’s Weekly on a country-by-country roll-out  Policy of hiring local editorial and advertising sales staff  Educating the reader to discern your quality product over the competition  Quality researched editorial that does not overstep the boundaries of propriety  Retaining strong editorial branding 3. ACP in Asia cont’

 Finding a like-minded local partner where required  Adapting Western-style editorial and production standards across the region  Educating the reader to discern your quality product over the competition  Pressure to discount advertising rate card  Lack of industry standard audited circulation 3. ACP in Asia cont’ Challenges:

4. Expansion opportunities in Asia for ACP  Further expansion potential in Asia  Thailand  China  Indonesia  India  South Korea  Publication of non-English editions  Brand extension  Sponsorship and events such as Cleo Top 50 Bachelors  Beauty guides, cook books, diaries etc  Untapped cross-media promotion  Television  Web sites

Growth Strategies in the Asian Region FIPP Seoul Conference, April 2002 Presented by John Alexander CEO of PBL Media and ACP Publishing Growth Strategies in the Asian Region FIPP Seoul Conference, April 2002 Presented by John Alexander CEO of PBL Media and ACP Publishing