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1. 1
WAN 2.0Clive Dickens, CDO
Dan Stinton, Head of Digital
3 February, 2016
Version 3

2. Current Status
Digital Growth Markets
New Digital Strategy
Key Financials
Recommendation

3. 0
50
100
150
200
250
300
FY15 FY16 FY17 FY18 FY19
Bear
Base
Bull
The FY19 revenue gap (from FY15) is forecast to be $36m,
but this could be as large as $119m.
Base Case:
• Based on current
• Revenue -3.6% to -6% CAGR
• EBITDA Decline -12.6% CAGR
Bear Case (continuation of 15)
• Based on Prior Year trends
• Revenue Decline -11.0%
CAGR
• EBITDA Decline -17.1% CAGR
Bull
• Revenue Decline -2.9% CAGR
• EBITDA Decline -9.6% CAGR
$36m
$119m
EBITDA ($m)
Bull 76.0 68.7 62.1 56.2 50.8
Base 76.0 66.5 58.1 50.8 44.4
Bear 76.0 63.0 52.3 43.3 35.9
Source: WAN management, KPMG
Revenue ($m)

4. Peer publishing digital revenue analysis
Source: Company Reports, SWM Analysis, IBIS World, Media Briefing April 2014
*News.com.au is the only source of NewsCorp Video Streams used as the basis for the assumption of video revenue
Digital Revenue
as a % of Total Print
and Digital Revenue
Video Revenue
as a % of Total
Digital Revenue
Market Share
(Digital Peer
Group Revenue)
The Guardian (UK) 37% (2014) - -
New York Times (US) 24% (2015) - -
News.com* 16% (2015) 25% (2015) 44%
Fairfax 14% (2015) 3% (2015) 33%
Daily Mail (UK) 10% (2015) - -
West Australian Newspaper 3% (2015) 12% (2015) 7%
Yahoo!7 - 20% (2015) -
APN - - 5%

5. DEFEND PRINT
AUDIENCES &
REVENUE
PARTNER
FOR SCALE
INVEST IN
ADJACENT
EMERGING
MARKETS
Defend print audiences
and revenue:
Limit the publication of
content online to protect
print audiences and
maximise circulation.
Invest in adjacent
emerging markets
Leverage existing
print advertiser
relationships to grow
digital revenue in
adjacent verticals.
Partner for Scale
Leverage partnership
with Yahoo7 to
minimise dev costs
and utilise Yahoo’s
investment in
publishing tech.
= $5.7m*
FY16
WAN current digital strategy
Source: SWM Analysis,
Note: *represents FY16 6-6 Net Revenue Forecast for WAN Digital

6. WAN has experienced a 36% year on year
decline to a 520K monthly unique audience.
Source: Nielsen Answers, December 2015
0
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500
600
700
800
900
Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
perthnow (Brand) WAtoday.com.au (Brand) thewest.com.au (Custom roll-up)

7. Current Status
Digital Growth Markets
New Digital Strategy
Key Financials
Recommendation

8. CY15:$1.1bn
CY19e:$3.7bn
CAGR:+34.9%
CY15:$508m
CY19e:$1.1bn
CAGR:+17.6%
CY14:$176m
CY19e:$608m
CAGR:+28.1%
So Mo VoAustralian
Social Media
Australian
Mobile Native + Display
Australian Digital
Video (AVOD only)
The opportunity is to focus on growth markets.
Source: Morgan Stanley, IAB, PwC 2015, eMarketer April 2015, CitiGroup 2015

9. Mins/Day
-
10
20
30
40
50
60
70
80
90
2012 2013 2014 2015 2016 2017 2018 2019
Australian Time Spent Watching Online Video
Time Spent Watching Online Video Time Spent Watching online Video (Mobile) Time Spent Watching online Video (Desktop)
27%
CAGR
28%
CAGR
26%
CAGR
AU online video consumption increasing rapidly
Source: Zenith Optimedia Online Video Forecasts (2015), Roy Morgan Australian Multimedia Report (2015)
Note: 2018-2019 management estimate

10. 57%
2%
48%
-14% -12%
37%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
Video Class-I (ex-Video) Class-II Native only Class-II ex Native Content Match
(Google)
Display Others
Y!7 FY15 vs. FY16 Budget
Video
Class-I (ex-Video)
Class-II Native only
Class-II ex Native
Content Match (Google)
Display Others
Yield Analysis: video increasing vs. display
declining
Pre-Roll Inventory has increased more than four-fold 2014-2015 and is +38% up Q1 to Q2 (CY2015)
Mobile Pre-roll inventory has sky rocketed with growth of over 167% from Q1 to Q2 (CY2015).
Mobile CPMs are up 11% Q1 to Q2
Video Inventory is growing YoY where other display streams are in decline or stagnant
Source: Tube Mogul Q2 2015 Quarterly Update Australia and New Zealand, Adexchanger (2015), Y!7 Internal Mgmt. Data

11. Digital video is also fastest growing ad segment
2,230
2,692
3,138
3,929
4,470
5,040
5,678
6,411
7,256
8,223
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Video
Classifieds
Display
Search
CY15-19
CAGR
Comments
28%
Video: Fastest growing
segment
8%
Classifieds: Dominated by few
large players
10%
Display: Driven by volume,
yield decreasing
15%
Search: Dominated by Google
Search
$m
Online video/ FTA 0.9% 1.7% 2.4% 4.0% 4.6% 6.0% 7.3% 9.4% 12.0% 15.8%
Online video/
Internet advertising
1.7% 2.4% 2.9% 3.9% 3.9% 4.5% 5.0% 5.6% 6.4% 7.4%
Source: PwC Outlook 2015, SWM analysis

12. Integration of 7 Perth and the West Australian creates a unique advantage
to leverage the TV, video and publishing assets to establish a short-form
video production hub.
Access to 7 content, including locally produced news and current affairs
and international video feeds minimises content costs.
Recent people investments and agile developments mean we are ready
and able to take back tech stack platform operations.
WAN is placed to win video news nationally and expand verticals to reach
new audiences.
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WAN is uniquely positioned for short-form video growth

13. Current Status
Digital Growth Markets
New Digital Strategy
Key Financials
Recommendation

14. “Delivering engagement
and value for WAN through
focusing on powerful
video storytelling”
Source: SWM

15. Step-change in
digital capability
and technology
Four pillars of the new WAN digital strategy
Audience and
revenue growth
through short-
form video
Social
distribution of
content and
advertising
Leverage reach
to grow brand
and product
portfolio

16. The Yahoo7 agreement is becoming expensive.
No user data Glacial product evolution Adops issues
FY16 FY17 FY18 FY19
Gross Revenue $7.8m $9.1m $13.8m $19.2m
Video $0m $1.1m $3.5m $5.8m
Display and Native $7.8m $8.0m $10.3m $13.4m
Yahoo7 Share $3.96m $5.01m $7.59m $10.56m
Development/Tech Expenses ($3.69m) ($4.86m) ($6.13m) ($7.59m)
WAN Benefit ($0.27m) ($0.15m) ($1.46m) ($2.97m)
✗ ✗ ✗

17. Deliver a step-change in digital capability
• Recruit experienced internal
development team
• Multichannel publishing platform
• Totally reimagined mobile
applications for iOS and Android
• Membership-based data strategy
• New product management focus
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Product and content vertical roadmap
Feb 2016
Launch of
The Game,
targeting
national AFL
audience.
June 2016
Launch of
new national
short-form
video travel
vertical.
Sep 2016
Acquisition of
PerthNow,
move to
number one
in market.
Nov 2017
Launch of
mobile
application
for iOS and
Android.
Jan 2017
Launch of
new multi-
channel
publishing
platform.
July 2017
Launch of
new national,
video-driven
millennial
brand.

19. New short-form video production team
HeadofVideo
Video Producer (x4): 40+ Videos/Month
Production of short-form content, ranging from News to direct
to mini chat shows that utilise the Seven virtual studio.
Video Editor (x8): 100+ Videos/Month
Utilise Existing content feeds from Channel 7 to produce five
short-form stories per day, ranging from news to celebrity gossip
Outsourced Video Producer (x5): 80+ Videos/Month
Work with external short-form video producers to buy content for syndication,
ranging from news to user generated content with the potential to go viral.
Branded Content Producer (x4): 8+ Videos/Month
Establish a branded content studio to produce video for clients
to be distributed across our respective social channels.
Existing WAN Journalists (x35): 15+ Videos/Month
Work with the existing traditional journalists to produce
one video per week utilising smart-phone cameras

20. Content produced for virality beyond news
Epic: Big production pieces with potential to be sold around the world (e.g. Sunday
Night world record basketball shot).
In House: Instant direct analysis on camera and filmed in the WAN newsroom to
mini chat shows that utilises 7 Perth’s Virtual Studio (e.g. Movies with Mark)
Opportunistic: Buzz feed-style viral videos (e.g. Mildura magpie).
Sweeper: Editors based in Perth and all Channel 7 offices scan unused content
and repackage (e.g. news, celebrity, reality plus international content).
External: Purchase third-party content (e.g. Geraldton shark)
User generated: Republish social video (e.g. Perth train lifters).
Branded Content: Commercial creative hub (at $15,000 per video)
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21. • Increase the social team to ensure adequate
coverage after-hours
• Launch more vertical pages to build large niche
audiences to increase revenue
• Redirect marketing spend to increase vertical “likes”
• Publish more content in Facebook’s native video
player to build audience
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Likes Follows
1,836k 70k
882k 127k
624k 557k
537k 386k
452k 137k
338k 88k
161k 97k
223k 39k
88k 55k
Source: Facebook/Twitter (August, 2015)
Increase social referrals from 20% to 50% of traffic by:
Social distribution of content and advertising

22. WA makes up 9% of the national online audience
WA IP
AU IP
• AFL: WAN has some of the most well respected football journalists in Australia,
including Shayne Hope, Mark Duffield and Nick Rynne, yet only 50% of WAN’s AFL
coverage is published online.
• Travel: Led by Travel Editor Stephen Scourfield, WAN produces a large volume of
travel content with national appeal.
• Seniors: Catering to its print audience, WAN produces a large volume of content for a
seniors.
• Millennials: Once WAN’s video production team is established it will produce more
short-form video content than any other Australian publisher.
WAN must leverage its reach, technology and content
to launch new brands and make acquisitions that cater
for a national audience beyond news and current
events:
Source: Nielsen Answers, December 2015

23. Current Status
Digital Growth Markets
New Digital Strategy
Key Financials
Recommendation

24. Key transformation financials
From
(FY15)
To (FY19e)
WAN gross video ad revenue
as % of Total AVOD Market
$1.0m
0.8%
$8.0m
1.3%
Digital gross revenue
as % of total digital newspaper market
$8.7m
1.8%
$35m
5.5%
Digital gross revenue
as % of WAN Total Revenue
$8.7m
3.2%
$35m
16.6%
WAN digital EBITDA
as a Percentage of WAN Total EBITDA
$1.6m
2.0%
$14.1m
31%
WAN Video Revenue (FY16 to FY19)
as a Percentage of WAN Digital Revenue
$1.0m
12.3%
$8.0m
39.4%
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Source: PwC Outlook, SWM analysis

25. Current Status
Digital Growth Markets
New Digital Strategy
Key Financials
Recommendation

26. Implement a short-form video content strategy by investing in the
establishment of a new video production team and leveraging SWM
owned and operated video assets.
Establish development team to build a best-in-class multi-channel
publishing platform.
Launch best-in-class native iOS/Android applications for phone/tablet for
video consumption.
Launch new content verticals driven by social and mobile to reach a
national audience.
Exit the current publishing agreement with Yahoo7 while still representing
Yahoo7 in WA.
Purchase PerthNow as part of the Sunday Times acquisition and
implement video lead and content driven digital strategy as outlined.
Recommendation
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27. The Game: Your home for AFL tipping and fantasy
Launching
25 February