1. Report 68.0 - 2nd Quarter Release - Johannesburg 14 August 2012

2. General ABC New look / new presentation format. -The introduction of the new ABC corporate identity has been well received and press reports have been positive. -In terms of marketing the ABC, collateral has been distributed at the recent AMASA Weekend Workshop, and a presentation has been given to the current AAA media students. -Publisher use of the new collateral has however been slow. Quarterly Presentation format has evolved, specifically with more; -Focus on trends – four year and by quarter. -Focus on growth / loss -New titles and those no longer part of the ABC.

3. SA Media Inflation (Ibis Q1 2012) Media inflation is running at over twice the expected South African CPI rate of 6%. Media delivery (performance) has dropped by 2.3% while rates charged have increased by 10.4%. Value (i.e. MIW) has decreased by 14.7% - last seen in 2008 !

4. Print Media Inflation (Ibis Q1 2012) While print rate increases have generally been reasonable, the on- going circulation declines continue to undermine the value offered. Daily Newspapers have performed poorly, delivering 16% less value than a year ago.

5. International Perspective UK June ABCs: three out of 29 newspapers grow circulation The Daily Star Sunday and the Independent's sister title, ‘i’, saw the biggest year- on-year circulation gains in June. ‘i’ (up 57.42%) benefited from a change in the Independent's bulk copies strategy, and Daily Star Sunday saw growth following the closure of the News of the World last July, although its June 2012 circulation figure, 473,352, is down 1.44% on the previous month.News of the World The Sunday Mirror was the only other newspaper to record a year-on-year circulation gain, up 0.06% to 1,088,499. Overall, the daily newspaper market has contracted by 7.79% in the past year, according to ABC UK.

6. UK National dailies reveal Saturday-only sales for first time UK national newspaper Saturday circulations now far exceed sales on Monday to Friday. The new figures come as every national newspaper – with the exception of ‘i’ and the Daily Star Sunday - report sales decline year on year, many of them severe. The biggest circulation declines in the daily market in April were: The Independent (down 45.4% after stripping out bulk copies), The Guardian (down 18.9%), the Financial Times (down 17.8%) and The Times (down 12.3%). In the Sunday market the Star Sunday remain the only title to have hung on to gains made following the closure of the News of the World last year. It remained up 56 per cent year on year at 482,225 copies a month.News of the World

7. After the initial flurry of excitement surrounding the release of their digital editions, magazine publishers are now beginning to focus on the strategies behind their products. Magazine publishers are beginning to utilize their own content assets to enter the book game. Examples include: > Rodale launched its “Essential Guides” series in mid-October, beginning with content from its Runner’s World brand. Hearst, The Good Housekeeping Cookbook; The Cosmo Kama Sutra; Food Network Magazine’s Great Easy Meals; O, The Oprah Magazine’s Words that Matter and O’s Best Advice Ever; Popular Mechanics’ Debunking 9/11 Myths and Harper’s Bazaar’s Greatest Hits, among others.

8. Print magazines still attract big numbers despite explosion of media choice First quarter ABC results for weekly consumer magazines, released on Friday, show average net paid sales holding firmer quarter-on-quarter compared to the previous year, with percentage sales dips for many titles in the Women's Weeklies segment remaining in the low single digits. Commenting on the latest ABC results, CEO of ACP Magazines, Matthew Stanton, said: "Retail trading conditions remain challenging and in context Australia's weekly magazine sales have proved resilient, declining just 1.7% in the three months to March compared to the previous period."ACP Magazines "Despite the explosion of choice in media generally and magazines specifically, 16 individual Australian magazines attract more than half a million readers with each issue. That is extraordinary for a crowded market in which more than 6,000 titles can be found on Australian newsstands^." stated the ACP CEO.

9. Rule Amendments effective 1st July 2012: 1.Community Newspapers has changed to Local Newspapers. 2.Barter Deals are only applicable to Third Party Bulk Sales and Subscriptions – Travel and Commercial. 3.Where audits are conducted by the ABC, certified data may be issued prior to the audit being conducted. The audit will take place within 3 months of the audit period.

10. Membership Statistics:

11. Sector size ranked by average circulation – Quarter 2 2012:

12. Overall Economic Perspective Comment: Real GDP at market prices increased by 2.7% quarter on quarter. Largest contributors were Manufacturing, Finance, Real Estate and Business Services. Retails Sales increased by 1% year on year in April. Retailers in hardware, paint and glass, and retailers in pharmaceutical, medical, cosmetics and toiletries showed the highest annual growth.

13. Newspaper Performance Relative to Economic Measures. Comment: Total newspaper circulation declined by 143,000 copies compared to the previous quarter.

14. 4 Year Category Trend by Quarter: Daily Newspapers Comment: Circulation has declined annually by 5.5 % since 2008, equivalent to 414,000 copies.

15. 4 Year Trend Analysis by Language Daily Newspapers Comment: English titles have declined by 6.4% annually, 365, 000 copies, over the period. Afrikaans titles have declined by 4.4% annually, 64,000 copies, over the period. Vernacular titles have increased by 3.3% annually, 15,000 copies, over the period.

16. 4 Year Trend Analysis: Coastal vs Inland Daily Newspapers Comments: Inland circulation declined annually by 6.3%, 315,000 copies over the period. Coastal circulation declined annually by 3.8%, 99,000 copies over the period.

17. Titles Showing Largest Growth Daily Newspapers No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Quarter Variance - Previous Quarter 1 Isolezwe 113,786 108,1385.22% 117266-2.97% 2 Volksblad - Daily 22,181 21,0875.19% 23375-5.11%

18. Titles Showing Largest Decline Daily Newspapers No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Quarter Variance - Previous Quarter 1Cape Argus 35,332 45,924-23.06% 35,493-0.45% 2 Sowetan 98,156 120,207-18.34% 98,1280.03% 3 Star, The 117,874 144,113-18.21% 124,641-5.43% 4 Pretoria News 20,316 24,801-18.08% 21,406-5.09%

19. 4 Year Category Trend by Quarter: Weekly Newspapers Comment: Having shown a decline during 2010, weekly newspapers have recovered to their 2008 levels.

20. New Members Weekly Newspapers

21. Titles Showing Largest Decline Weekly Newspapers No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Quarter Variance - Previous Quarter 1 UmAfrika 12,09717,231-29.80% 13,597-11.03% 2 Motorsport World3,3193,733-11.09% 4,282-22.49%

22. 4 Year Category Trend by Quarter: Weekend Newspapers Comment: Circulation has declined annually by 2.6%, 276,000 copies, over the period.

23. 4 Year Trend Analysis by Language: Weekend Newspapers Comment: English titles have declined annually by 4.5%, 355,000 copies, over the period. Afrikaans titles have declined by annually by 2.9%, 75,000 copies, over the period. Vernacular titles have grown annually by 38%, 153,000 copies, over the period.

24. Titles Showing Largest Growth Weekend Newspapers No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Quarter Variance - Previous Quarter 1 Isolezwe ngeSonto90,09280,608 11.77%855755.28% 2 Volksblad - Saturday21,60519,366 11.56%213801.05%

25. Titles Showing Largest Decline Weekend Newspapers No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Quarter Variance - Previous Quarter 1 Sondag 39,88250,383 -20.84% 39,0522.13% 2 Pretoria News Saturday11,89214,982 -20.62% 11,981-0.74% 3 Saturday Star, The82,839103,767 -20.17% 91,843-9.80%

26. 4 Year Category Trend by Quarter: Local Newspapers Comment: Local newspapers have shown little change over the period.

27. Titles Showing Largest Growth Local Newspapers No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Quarter Variance - Previous Quarter 1 Tembisan9,3947,22230.07% 8,19814.59% 2 The Mail16,64213,78020.77% 15,5706.89% 3 Newcastle and District Advertiser11,1699,42618.49% 10,8892.57%

28. Titles Showing Largest Decline Local Newspapers No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Quarter Variance - Previous Quarter 1 The Courier1,3211,819-27.38% 1,348-2.00% 2 Limpopo Informant2,7393,388-19.16% 3,357-18.41% 3 Umlozi2,6193,134-16.43% 2,913-10.09%

29. 4 Year Category Trend by Quarter: Hybrid Newspapers Comment: Circulation has increased annually by 5.5%, 30,000 copies, over the period.

30. 4 Year Category Trend by Quarter: Free Newspapers Comment: Distribution has increased annually by 5%,1,090,000 copies. over the period.

31. New Members Free Newspapers

32. Titles Showing Largest Growth Free Newspapers No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Quarter Variance - Previous Quarter 1 Eshowe Watch20,5926,003 243.03% 6,002243.09% 2 Kalahari Buletin (Formerly Kuruman Bulletin)19,90012,400 60.48% 19,9000.00% 3 Corridor Gazette5,6504,550 24.18% 5,3735.16% 4 City Vision (Langa/Gugulethu)49,63440,334 23.06%496340.00%

33. Titles Showing Largest Decline Free Newspapers No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Quarter Variance - Previous Quarter 1 Algoa Sun20,40449,775 -59.01% No Submission 2 Maritzburg Fever (formerly Mirror, The)39,80065,300 -39.05% 39,8000.00% 3 Theewaterkloof Gazette (Formerly Kontreinuus Gaz.)10,60915,649 -32.21% 15,559-31.81%

34. Magazine Performance Relative to Economic Measures. Comment: Total magazines declined by 1% over the previous quarter. Consumer magazines increased by 3% over the previous quarter.

35. 4 Year Category Trend by Quarter: Consumer Magazines Comment: Circulation increased annually by 2.4%, 659,000 copies, over the period.

36. New Members / Removals Consumer Magazines

37. Titles Showing Largest Growth Consumer Magazines No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Period Variance - Previous Period 1 Kuier 72,493 38,042 90.56% 64,78711.89% 2 Kick Off 56,539 41,464 36.36% 55,8741.19% 3 Health Intelligence (Six-Monthly) 14,078 10,571 33.18% 15,532-9.36% 4 Barbie Magazine 17,161 13,032 31.68% 15,7209.17% 5 Marie Claire 41,544 31,772 30.76% 37,28511.42% 6 Destiny Man (Six- Monthly) 19,250 14,994 28.38% 18,8692.02%

38. Titles Showing Largest Decline Consumer Magazines No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Quarter Variance - Previous Quarter 1 Prestige 8,245 15,334 -46.23% 9,474-12.97% 2 Cars in Action 6,148 10,442 -41.12% 8,041-23.54% 3 The Red Bulletin 76,749 128,927 -40.47% 69,70010.11% 4 Hoezit 6,084 8,522 -28.61% 8,433-27.85% 5 People Puzzles 26,713 37,003 -27.81% 29,033-7.99% 6 Modern Athlete 23,137 31,176 -25.79% 31,796-27.23% 7 Rooi Rose 81,555 108,898 -25.11% 104,533-21.98%

39. 4 Year Category Trend by Quarter: Consumer Magazines - Home Comment: Circulation increased annually by 5.6%, 165,000 copies, over the period.

40. 4 Year Category Trend by Quarter: Consumer Magazines - Sport and Hobby Comment: Circulation increased by 1.3% annually, 27,000 copies, over the period.

41. 4 Year Category Trend by Quarter: Consumer Magazines - Travel Comment: Circulation increased annually by 25%, 323,000 copies, over the period.

42. 4 Year Category Trend by Quarter: Consumer Magazines – Woman’s General Comment: This category has fluctuated considerably. Circulation declined by 1.7% annually, 130,000 copies, over the period.

43. 4 Year Category Trend by Quarter: Business to Business Magazines Comment: Circulation has remained static over the period.

44. New Members / Removals Business to Business Magazines

45. Titles Showing Largest Growth Business to Business Magazines No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Period Variance - Previous Period 1 South Africa in the Palm of your Hand (Annual)26,7306,002 345.35% 2 WattNow. 5,9053,796 55.56% 4,99918.12% 3 Afropolitan (Six- Monthly)7,0494,798 46.92% 9,197-23.36% 4 Technology in Architecture & Design (Six-Monthly)4,8463,349 44.70% 3,75728.99% 5 Northern Cape Business (Annual)14,71310,597 38.84%

46. Titles Showing Largest Decline Business to Business Magazines No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Period Variance - Previous Period 1 Conference Venues (Annual)4,83011,310 -57.29% 2 Pedmed (Six-Monthly) 3,6895,873 -37.19% 6,073-39.26% 3 Water & Sanitation Africa (Six-Monthly)2,8624,384 -34.72% 4,559-37.22% 4 Pro Agri 39,15359,129 -33.78% 39,193-0.10% 5 Design Indaba (Annual)2,0893,100 -32.61%

47. 4 Year Category Trend by Quarter: B2B Magazines – Hospitality, Catering and Tourism Comment: Circulation declined annually by 5.2%, 26,000 copies over the period.

48. 4 Year Category Trend by Quarter: B2B Magazines – Management Comment: Circulation declined annually by 5.8%, 83,000 copies over the period.

49. 4 Year Category Trend by Quarter: Custom Magazines Comment: Circulation increased annually by 1%, 486,000 copies, over the period.

50. New Members / Removals Custom Magazines

51. Titles Showing Largest Growth Custom Magazines No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Period Variance - Previous Period 1 Foschini Soccer Club61,83333,992 81.90% 58,1666.30% 2 Reality (Annual)177,279110,000 61.16% 3 Foschini Living Space56,28135,231 59.75% 53,0486.09% 4 Premier5,7673,867 49.13% 4,85318.83% 5 Clicks Club Card (Six- Monthly)603,305504,204 19.65% 706,136-14.56%

52. Titles Showing Largest Decline Custom Magazines No Publication Name TOTAL CIRCULATION Corresponding Previous Period Variance - Prior Year Previous Period Variance - Previous Period 1 M 18,03124,332 -25.90% 18,555-2.82% 2 The SA Journal of Epidemoilogy & Infection (SAJEI) (Annual) 1,9222,468 -22.12% 3 Architecture Journal of SA Institute of Architects (Six- Monthly) 4,3105,455 -20.99% 5,572-22.65% 4 Wild (Annual) 57,40772,145 -20.43% 5 Magic 50,37961,956 -18.69% 52,123-3.35% 6 A-Plus 79,69296,775 -17.65% 68,50316.33%

53. 4 Year Category Trend by Quarter: Custom Magazines – Entertainment Comment: Circulation increased annually by 4.9%, 497,000 copies over the period.

54. 4 Year Category Trend by Quarter: Custom Magazines – Retail Comment: Circulation increased annually by 2%, 571,000 copies, over the period.

55. 4 Year Category Trend by Quarter: Free Magazines Comment: Circulation declined annually by 20%, 2,511,000 copies over the period.

56. New Members / Removals Free Magazines / Advertising brochures Advertising Brochures Removals Title Shopper's Friend

57. Observations: Internationally print remains under considerable pressure and while we note some recovery in the economic wellbeing of several magazine groups, this is coming from e-book sales rather than circulation. Locally, print also remains under significant economic pressure. With declining consumer confidence, print media owner restructuring and mounting shareholder activity and indeed the imminent sale of a large publishing group, the months ahead will exciting to say the least. Already we note increased efforts to deliver Improved cost efficiency, with the removal of “incentivized” copy sales in order to achieve a sustainable economic model. The timing of such efforts however could be better. With only 8 weeks to go before the beginning of the primary 2013 planning period, it’s going to be challenging for publishers to retain share of market while delivering less, asking more and offering lower volume discounts. That said there is still good news in print…as in deed this presentation has revealed.

58. Specifically: -ABC membership is growing and reflects industry view of no ABC no advertising. -Vernacular titles are generally fairing better than other language titles. -We’re seeing some interesting regional trends coming through, particularly in newspapers (inland vs. coastal as well as local and free newspapers.). -Magazines, generally have faired better than press. In conclusion there remains a silver lining to the results …the detail (and Core circulation) offered by the ABC reveals valuable growth across all major categories. Mining this data, however, will require equal effort by customers and media owners alike. As the saying goes, “you’re either fast or food” and the fast will be using the ABC detail to obtain a competitive advantage and those that don’t, well…won’t. Bon Appetit ! (or born up a tree…it’s your choice !)

59. Thank you.

60. Your (new) ABC - Transparency you can see -