64th World Newspaper Congress and 19th World Editors Forum

1. Confronting the wave
of change
Greg Hywood
Chief Executive and Managing
Director
Fairfax Media Limited
Australia

2. Greg Hywood
Chief Executive Officer & Managing Director
WAN-IFRA Conference Kiev, 3 September 2012
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3. Fairfax is a leading multi-platform media company in Australasia
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4. External factors
MOBILE
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5. Our strategic model
Digital news media & transactions co.
Independent quality journalism & content
Horizontal Media coverage
 Print/Radio Online Smartphones/
Tablets
Smart TV/IPTV
Cross-platform audiences
Circ/Subs/pay Digital Data, events
Advertising
for content Transactions etc
Monetise audiences through the day
At the core of our strategy is the distribution of our journalism across converging
multi-platforms, and the aggregation and monetisation of audiences via multiple
revenue streams
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6. In the last 5 years our metro audience reach has grown by 30%
to over 7 million people
Fairfax Audience by Media Type 30%
% of population
Market Total (000s in brackets)
Growth
38%
People who (7,173)
access the
Internet at least 33%
monthly has (5,540)
grown from 73%
to 90% of the
population
Reach (000s)
People who read
a newspaper in
the last 7 days
has declined
from 80% to 64%
Source: Roy Morgan Data March 2012 v March 2007. Fairfax Metro Print = SMH M-Sun net & AGE M-Sun net, GW, SL, TSM, TMM. Fairfax Digital = Any
Fairfax site visited in the last 4 weeks. Note: Online audience estimate is regarded as very conservative
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7. New platforms also help us reach new users
iPads sold in the Australian Market 2
Tablet apps - combined SMH/The Age 1
90,000 900,000
80,000 800,000
70,000 700,000
32%
cumulative downloads
60,000 600,000
av daily UB
50,000 500,000
40,000 400,000
30,000 300,000
20,000 200,000
10,000 100,000
- -
11
11
12
12
12
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1
2
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11
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Ipads sold in Australian Market SMH/AGE apps downloaded
No
Ju
Ja
Ju
Fe
Au
Se
De
M
O
M
M
Av daily unique browsers Downloads
1 Sources; AppFigures, Google Analytics
Due to technical issues with Google Analytics tracking code, complete data for average daily unique browsers for May & June 2012 is unavailable.
2 Source: Frost & Sullivan May 2012
Fairfax have estimated this amount based on Apple download figures allowing for estimated removed apps. 7

8. Advertisers can reach our audience throughout the day
First Look News in News Strong Mid ‘The Catch-up Downtime, Indulging in Late Night
Headlines brief on through video afternoon Overnighter’ on the longer some ’me- Viewing:
the go the day, behaviours break, strap day’s content, time’ with Prime Time
short and around lighter directing you events on deeper inspiring, for Long-
frequent lunch stories to longer the way engagement longer reads Form Video
content home
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9. We know that product usage varies by platform across the day
Traffic Peaks Through the Day
Home Travel Work Travel Home
% of platform traffic
9:00
20:00
5:00
6:00
7:00
8:00
10:00
14:00
16:00
13:00
11:00
12:00
15:00
17:00
18:00
19:00
21:00
22:00
23:00
longform web, shortform mobile tablet radio newspaper
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Sources: Web/Mobile/Video : Neilsen Aug 2011; Tablet Omniture Aug 2011; Print, Radio Roy Morgan June 2011

10. Metropolitan newsroom model: around the clock
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11. Metro problems identified and solutions found
Identified problems Solutions found
Silos • Across geographies Change the way • Work in smarter ways to create
we work audience-focused, quality
• Across platforms independent journalism and more
unique content for all platforms
• Across days of the week
• Create fully integrated newsrooms
across geographies and platforms
Duplication • Occurs in content creation Remove • Through better and more
unnecessary transparent planning and
• Occurs in production commissioning, and building
duplication and
improved organisational discipline
• Occurs in editorial waste
management • Preserve local voice of each
platform and meet the needs of
local audiences
Print-first • Stories subbed many times Become digital • While still producing quality
ways of first newsrooms newspapers
• Stories held off web
working
unnecessarily
• Online not included in
planning
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12. Changes to Metro Media newsrooms
• Topics will be platform-neutral, delivering coverage for all platforms 24/7.
• Topic Editors will roster journalists to ensure all platforms are serviced 24/7, meeting rolling deadlines.
• Journalists who are subject matter experts will be expected to contribute their commentary or analysis
to meet the needs of a digital audience.
• Not all stories will be published digital-first, but many – including our exclusive journalism - will.
• Duplication and over-commissioning will be eliminated.
• We will adopt digital-first efficient ways of working that eliminate wasteful re-work, such as stories being
subbed many times.
• We will use reader feedback and audience analytics to help guide the journalism we do.
• Video editors will be involved in all news briefings and planning meetings.
• Social media will be integral to our newsrooms.
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13. Strategic imperatives
GROW
DIGITAL
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14. Fairfax of the Future project is transforming the way we do business
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15. Metro Media: key transformation initiatives
• A digital first editorial model implemented
By July 2012 • Removal of ineffective circulation that offers no value to advertisers
whilst maintaining readership market share
• Integration of sales across channels
• SMH and the Age to convert to contemporary compact print formats
From March 2013 • Introduction of a digital subscription model for the Metro mastheads
• Closure of the Chullora and Tullamarine printing plants, providing
By June 2014 flexibility to convert to a digital only model
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16. Building required capabilities is a critical first step
• Move beyond historical platform-centric view of our audience
Develop deeper understanding of
• Develop strategic segments to provide focus and direction
our audiences
• Invest in understanding adjacent unmet needs that can be served
Drive performance through aligned • Replace traditional metrics such as circulation
incentives and active performance • Provide incentives for collaboration across silos
tracking • Develop a new ‘language’ for assessing and discussing success
• Commit to understanding and valuing talent across the business
Attract, retain and grow talent
• Offer opportunities to learn new skills and take on new challenges
across the business
• Create an entrepreneurial atmosphere that promotes fresh thinking
Invest in critical technologies to • Put systems in place to track and monitor performance
support and enable strategy • Provide the means for working efficiently and effectively
execution • Centralise and simplify the technology footprint
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17. Changes to the organisational structure are required to ‘unlock’
whole-of-company opportunities
Metro • Maintain ownership of
core customer-facing
Marketplaces activities in Business
Units
FRG
Regional • Centralise common
activities to enable a
Ags
whole of Fairfax
NZ
approach to unlock
savings and variablise
Radio costs
Organised by BU Centralised Centralised Centralised
(no centralisation today) (partially centralised today) (as is today)
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18. In conclusion
ONLINE GROWING COST PROFITABLE
NEWS AUDIENCES DISCIPLINES PRODUCTS
PLATFORMS
We’re focused on We’re focused on We’ve got rigorous We’re continuing to
continued decisive growing audiences – cost disciplines develop profitable
leadership in the already having the products – across print
development and largest news and digital – with a
monetisation of online audience in Australia focus on accelerating
news platforms our online business
which is seeing strong
revenue growth
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19. 19