Ifra Press Conference Vienna, September 12, 2007

1. Ifra Press ConferenceVienna, September 12, 2007 Reiner Mittelbach Chief Executive Officer Ifra mittelbach@ifra.com www.ifra.com

2. Agenda • Ifra‘s positioning and strategy • Facts about today‘s and tomorrow‘s publishing business • Newsroom strategies and pitfalls • eNews – Creating business in the emerging mobile e-reading world (a group learning experience) • „Where NEWS?“ – Scenarios for the future of the news publishing industry - Coffee break - • IfraExpo 2007 • Ifra XMA Cross Media Awards • 15th Beyond the Printed Word conference in Dublin • Outlook on Ifra events and exhibitions in 2008

3. About Ifra Events IfraExpo Member & Customer Training Newsplex Consulting Publications RESEARCH IFRA

4. Membership Others*: Printing sites, agencies, consultants

5. Strategic Focus • Technology <–> Business Technology Impact on news publishing companies Impact on suppliers Require Enables Business for news publishing companies

6. Ifra value creation chain Detect relevant issues in the changing environment Harness the knoweldge for the news publishing industry Market and communicate it Analyse relevant issues

7. Update on Ifra strategy • Positioning Ifra Research 2007  2010 D P high B D = Platform digital P = Platform paper B = Business environment D market attractivness medium B low low medium high rel. market position

8. Ifra is Paper and Print Ifra is Digital Ifra is Business Ifra is FUTURE Ifra - We want to be the indispensable global partner in technology and business for our members from the news publishing industry.

9. WHY?

10. Characteristics of the media market of today - Circulation Source: World Press Trends

11. Characteristics of the media market of today - Circulation Source: World Press Trends

12. Characteristics of the media market of today Source: World Press Trends

13. Characteristics of the media market of today Source: World Press Trends

14. Three core drivers of future development Technology Scenarios Strategy Platforms Demo- graphics

15. Future Newspaper Printing Technology • In five years • Width-variable presses • Multipurpose hybrid systems • Plate change robots • Closed-loop control of tension, register, density • Integration of ink-jet systems (value added) • “Modular printing plants” – Build/Operate/Transfer • Shared print centres that operate for more than one publisher

16. Future Newspaper Printing Technology • In ten years • Cut-off variable presses • Automated: washing, sensors, measurements, plate change • Drying technologies at speeds of 15 m/second • “Mini-Waste” and “Maxi-Quality” controls, mature MIS for newspaper production systems • Decentralised low-cost print centres • BOS systems: Build/Operate/Sell, publisher concentrates on core business • Ink-jet imprint units at full speed for latest news

17. Future Newspaper Printing Technology • In fifteen years • Full format variability • Re-writable printing forms, CTPress • Digital printing as add-on systems • Offset press becomes “Print Robot” • 4/4 colour production, standardised materials • On the way to unmanned production • Sustainable decentralised modular print plants • New drying/curing systems with low energy consumption and low emission

18. Passive Separate Standalone Aggregated User-generated content beginning to compete with professional content Content distribution via Internet, but with separated and asymmetric networks Pool of digital devices becoming inter­connected but with limited content targeting Separate content consumption experience: passive TV service and interactive PC usage for Internet Transport Network Content Device Consumption Interactive Converged Networked Personalized Increased competition from user- and community created interactive content Symmetric high-bandwidth broadband networks (Fibre, 4G) with a variety of service packages Home media servers fed by content providers acting as staging areas; content transparently accessed by many devices Users will access personalized channels allowing on-demand consumption of content and community interaction The interactive, networked and personalized future Source: Ifra Where NEWS report Nr. 3 / DFKI

19. Triple play – a user driven network Source: Ifra Where NEWS report Nr. 3 / DFKI

20. Devices and Terminals • The multi purpose digital mobile terminal • Communication • Authentication • Localization • Media player • Cellphone • Etc. • Specialized wirelessly connected devices • Part of clothes • Stylish accessories • Etc.

21. The phenomenon of disappearing computing • Not the technology but the interaction with it takes centre stage • Information technology disappears and is included into daily life • Mobile phones • Digital camera • MP3 player • Smart devices have to know their context to perform intelligent jobs • Focus on the interaction with the user

22. Web 3.0 • Scaling and broadening the Semantic Web • overcoming the semantic gap by learning semantic structures from communities • automatic annotation and deep web exploration • from search to question answering in open domains Semantic Web • Machine-intelligible Web semantic foundation Web 1.0 • Web of companies • Homepages • keyword search Web 2.0 • Web of people community based Source: Ifra Where NEWS report Nr. 3 / DFKI

23. Development of selected age groups in North America and Europe 2005 - 2020 Source: Ifra Where NEWS report Nr. 4 / IWG Bonn

24. Individualisation versus family scenario Source: Ifra Where NEWS report Nr. 4 / IWG Bonn Source: Ifra Where NEWS report Nr. 4 / IWG Bonn

25. Trend: Global and international migration • Migration to mature countries will grow • In 2020 20-30% of the populations will have a migration background • More immigrants from regions further away • Immigrants are drawn to urban regions • Growing ethnic and cultural diversity • Migration will not change the age pattern

26. Trend: Consumer generated content (CGC) Media will change Mainly unidirectional mass media Bidirectional communication systems

27. CGC: The development of Blogs Source: Technorati

28. Impact of social aspects of media services • A growth in the number and variety of ”social media” – communities. • Entrepreneurial activities will lead to an explosive growth in niche social media. • A growing presence of traditional media and information providers within popular and niche social media. • A virtual media economy within the social media with currencies convertible to real life money. • A strong focus on community building and maintenance in traditional media.

29. Searches done by US web surfers at home, work and at universities in July, 2006 Source: comScore for SearchEngineWatch.com

30. Trend: Commoditization of news media • Media companies’ offerings become increasingly alike • Devices for consuming media contents are more and more interchangeable • Media move closer to anonymity • Consumer loyalty to a specific media company or brand is already close to non-existent in the digital domain This will have an impact on price

31. How to stay ahead • Take predictions serious • Create scenarios and pick the one that suits your market and your estimations best • Create a vision, a mission and a strategy • Invest in new upcomming technologies and platforms • Forget about silos, think about offering a complete media package • Segment your market and understand that you are consumer driven • Implement organisational structures that can manage the new community based multi-platform world • Prepare the people for constant change and constant learning

32. “People always overestimate how much will change in the next three years, and they underestimate how much will change over the next 10 years.” Bill Gates

33. eNews – a group learning experience on mobile e-reading • Technology • Business models • Consumer reactions

34. At the moment we are working with thefirst of three expected versions of devices 2-5 years Now 2003-2005 5+ years Time Version 3 • Flexible colour device • On line at all times • Very large memory and battery capacity • Books, magazines and newspapers Version 2 • Colour e-ink device • Online at all times • Improved memory and battery capacity • Books, magazines and newspapers Version 1 • Black and white e-ink device • Wi-fi • Limited capacity (memory and battery) • Limited amount of content Version 0 • Black and white e-ink device 6” • USB • Limited capacity (memory and battery) • Small amount of content

35. Ifra eNews 2005-2008Unique cross-disciplinary three years initiativePartners: The 23 Publishing Members are (represents 40 million in circulation):Bonnier/Expressen (SE), De Telegraaf (NL), dpa- Deutsche Presse Agentur, (DE) Edipresse Publications (CH), Frankfurter Rundsschau (DE), Georg von Holtzbrinck GmbH & Co. (DE), Libération (FR),Mainichi Shimbun (JP), New York Times Company (US), Nordjyske Medier (DK),Orkla Media (NO), PrisaCom/El País (ES), Rheinische Post (DE), Sanoma Corp. (FI),Schibsted/Aftonbladet (NO/SE), Stampen/Göteborgs-Posten (SE), Styria Medien (AT),Tamedia AG (CH), Telegraph Group (UK), Tribune Interactive (US), Vorarlberger Zeitungsverlag und Druckerei (AT), Westdeutsche Allgemeine Zeitung (DE),Yomiuri Shimbun (JP). The Technology Members are:Arena Partners (FI), iRex Technologies (NL), Plastic Logic Limited (UK).