Content Tree

GNMGood News Media Group

September 2011

1.1. About UsAbout Us Company History &BackgroundCompany History &Background

Company ImpressionsCompany Impressions

Product/Service PortfolioProduct/Service Portfolio

Portfolio Strategy - Differentiation &StrengthPortfolio Strategy - Differentiation &Strength

Management SkillsManagement Skills

Vision &MissionVision &Mission

Company PhilosophyCompany Philosophy

2. Business ModelBusiness Model OperationsOperations

Target Markets &Customer SegmentationTarget Markets &Customer Segmentation

Strategy & ObjectivesStrategy & Objectives

Inside

3.3. Growth StrategyGrowth Strategy

4.4. Investment PerspectivesInvestment Perspectives Listing &Reasons to InvestListing &Reasons to Invest

Investment PerspectivesInvestment Perspectives

5. ContactsContacts

Company History &Background

Started in 1987 as a PUBLICATIONS shareholding company. Today, the company has grown to be one of the largest and most diversified MEDIA and ENTERTAINMENT companies in the region.

Seven major companies and four subsidiary companies with 1,300 employees professionally working across the region.

.

GNM Growth

Digital content comprises of web, wireless, audio and video content that is sold through mobile operators (Mobily, Zain, Etisalat, DU, Vodafone, Mobinil) and to direct subscribers of GNM’s services.

GNM is one of the top 5 cinema operators in Egypt, who pioneered the concept of ‘luxury’ cinemas and distributed its own and third party movies in 12 cinemas with 32 screens.

GNM has been managing two very successful and the only private radio stations in Egypt since 2003, in which it has a 25% minority stake. GNM also produces radio programs and generates revenue through the sale of licensing rights to these programs in Egypt and for a

number of radio stations in Lebanon, Abu Dhabi, Bahrain, Yemen and Morocco. Retail outlets management such as virgin, movie theaters.

Publishers for 2 Daily newspapers and 5 magazines (weekly-monthly) with long-standing reputation as thought leaders in the industry.

GNM released 9 movies, some of them were the most commercially successful in Egypt’s cinema history.

GNM also released 12 musical albums during 2005-2010, including that of a newly discovered superstar .

Content Offering

Films

Music

AdvertisingTV RadioFilm Music Online

Publishing

Publications

Radio &TV

Online

What makes us different?“The largest digital archive in the Arab world “

Advertising

Content Offering

Good News Group is focusing on cross-platform selling to give the advertisers and media buyers the opportunity to achieve the best return on their investment using our integrated and multi-platform approach.

Our Integrated-platform Selling

“The Best return of Investment (ROI)”

What makes us different?Content Offering

What makes us different?

“leveraging both access and distribution capacity to generate incremental revenue from under-utilized assets”

Our value chain as a multimedia company

Content Idea

Plan for each media

Editing

Production

Publishing

Distribution

Syndication

Archiving

Cost

Revenue

Multiple channels:Print, Internet, Mobile…

Multiple channels:Newspapers, Websites, Mobile, TV…

Content Offering

The shift to a structure that is more oriented to content production

News

PrintMobileInternet Radio TV

Our Advertising Model

Good News

Finance

PrintMobileInternet Radio TV

Sports

PrintMobileInternet Radio TVEventsCinemas

Religion

PrintMobileInternet Radio TVEvents

Entertainment

PrintMobileInternet Radio TVEventsCinemas

PrintMobileInternet Radio TVEventsCinemas

Events

PrintMobileInternet Radio TVEventsCinemas

Infotainment

“Specialist market verticals and multiplatform campaigns “

Construct content packaging, bundling and sales strategies to utilize variable pricing models that enable partners to advertise and share profits, and enables consumers to access content through more compelling release schedules.

What makes us different?Content Offering

Our Brands reach 24m consumers every day What makes us different?

Content Offering

Our content industries are:

Publishing

Film Industries

Music Industries

Broadcasting (Radio & TV)

Online content (Internet &Mobile)

Advertising &Marketing

Our delivery mediums are:

Print, Internet, Mobiles , Cinema Theater , FM channels, Broadcast (TV-Cable

Terrestrial &Satellite, DVDs, VOD, IPTV).

Egypt

GNM Products &Services portfolioContent Offering

Portfolio Strategy - Differentiation &StrengthPortfolio Strategy - Differentiation &Strength

The most diversified digital content library in the region. Group diversity and integration platforms. Our respected brands associated with high-quality content production. Human Resource:

In-house content developers, and online editors. Art directors and graphic designers. Certified technical developers. Experts managers with media knowledge and technologies. Local and regional marketers.

GNM Integrated Platform

Distribution: Direct connection with top media companies in the Arab region (BBC, AFP…). Direct connection with top TV networks in the Arab region (ART, MBC…). Direct connection with top Mobile network operators in the Arab region (Zain, Mobily…). Direct connection with famous artists and singers (Adel Emam, Magda ElRomi…). Business partnership with top technology, media and production houses (Google, Oracle,…).

Expertise and successful business cases: GNM produces the most successful movies in Egypt’s box office. GNM manages the most successful FM radio station in Egypt “Nogoom FM”. GNM is one of top five Cinema operators in Egypt. GNM publishes one of the leading daily financial newspapers “Al Alam Al Youm” in Egypt. GNM’s market share estimated at a substantive 9.5% of the Pan-Arab digital content market.

Content Offering

Management Skills

Board of Directors

Content Offering

Management Skills Content Offering

Management Skills Content Offering

Create quality content, aggregate different types of content, distribute it across all mediums using our Integrated M&E platform and make it accessible all around the clock.

Create

AccessDistribute

Aggregate

GNM Vision & Mission

The synergy of the group companies gives us a great opportunity to develop packages of cross-platform selling with more flexible and innovative in our product offerings and be able to negotiate alternative and flexible fees with our advertisers.

We have future vision for strategy innovation with the following challenges:

The shift to digital, the shift to a structure that is more oriented to multimedia production , the moving into multiple business models, methods of creating customer value in order to meet newly emerging customer needs and create new markets and new customer groups for the sponsoring company.

Understanding what new technology brings to the party and having a real vision of content viewers and what the advertisers and media buyers are looking for today and coming years...

To become the first brand in the Pan-Arab M&E industry through the Company’s

diversification of its content offerings and distribution capabilities.

Content Offering

Company Philosophy

GNM is looking to diversify its content and distribution offering to reduce the volatility inherent in the content business. The historic success of GNM’s content gives comfort that GNM will continue to produce successful movies and TV series that the public likes and wants. Publishing remains a stable ‘cash cow’ as well as the radio business in Egypt – that have historically and will continue to ease the impact of earnings volatility from other higher growth lines.

GNM’s content has proven quality, is in demand and is distributed across a broad distribution platform. GNM’s focus on expanding its existing distribution platform and diversifying into the FTA TV space should help strengthen its competitive edge in the market.

GNM has a proven track record of entering new business lines successfully. The entry into TV distribution is a natural extension of their distribution platform which will be phased to manage the risk effectively. The first channel will leverage GNM’s financial news expertise and will be a partnership with Bloomberg. On the TV programming side, GNM already has the creative talent, experience and relationships to produce TV series. GNM will utilize their existing relationships with the FTA channels to sell their TV series. The investors are expected to pressure test management capabilities and assist in developing proper budgeting and business plans for GNM’s ambitious expansion drive.

Content Offering

Financial performanceBusiness Model

Business ModelOperations /Customer /Market

  Company Activities / Subsidiaries Sources of revenue Main Client MarketMaincompetitors

Cost

1Good News

International

Publishing

Content syndication, Advertising revenues, Distribution and subscription revenues

Etisalat Masr, Mobinil, AL-Ahram, Toshiba, Artoc Auto, Raya Holding, Banks

Egypt, Gulf area, Lebanon, Syria, North Africa, London, Geneva, Yemen

Al Mal

Printing expenses, Journalist and writhers expenses, Distribution cost

Alam Al Youm Daily

Nahdet Misr Daily

Adam Magazine - Monthly

Party Magazine - Monthly

Cinema Magazine - Monthly

TV Magazine

KOL EL- NAS MAGAZINE - Weekly Magazine

2Good News 4

ME

Presenting Digital Content and various technological services to the sector of Information technology & communications in the Arab World and North Africa. It relies on the users of Internet and cell phones in this region. GN4ME Emericom (Emirates), Sara GN4 ME (Saudi Arabia), GN4 Gulf (Bahrain). (SMS - MMS - Java Games - True Tones - Themes - Wallpapers - Screen Savers - Greeting Cards - Video - RBT - Mobile Fun)

Content syndication, Advertising revenues, Development revenues

Zain Bahrain, Etisalat Emirates, Emircom (Mobily - KSA), Helol (Zain KSA), MBC, Vodafone - Egypt, Arpu(+)

Egypt, Saudi Arabia, Bahrain, Emirates

Link, Arpu+, Rotana, Egypt Links, TA Telecom, Telcomedia

Salaries and wages, Content, Communication Lines, Development services

Content Offering

Business Model

  Company Activities / SubsidiariesSources of

revenueMain Client Market

Maincompetitors

Cost

3Good News 4

F & M

Produce cinematic films, musical & artistic works. / Virgin Mega Stores - Variety Multimedia Stores

Usufruct right, Parties, Cassettes revenues, CD revenues, Films distribution, Production, Equipment Rent Revenue

United Artistic Group, Arabian Company for production & Distribution, satellite Channels

Egypt, Gulf area, Lebanon, Syria, North africa, Europe, USA, satellite Channels

Misr Int., Al-Mottahida, Al-Sobky, Al Batros, Arab Company for Production and Dist.

Distribution Cost, Direct production Cost, Promotion expenses

4Good News 4

AD

Advertising activities through the mediums / 4 Cast Media House, Ninety Degree for Advertising

Advertising revenues, Sponsorship Programs revenue

AD - Line, MBA Agency, Tropicana, Pyramids cosmetics

EgyptTarek Noor,

Promomedia

Radio broadcast Cost

5Good News 4

R & TVProduce and prepare programs

/ Nile Radio Production

Usufruct right, Sponsorship Programs revenue

Mobinil, Vodafone, Pepsi, Aramix, Abu Dhabi Channel, Radio Lebanon El-Hor, Bahrain Radio

Egypt, Bahrain, Emirates, Lebanon

MBC, LBC, ART, Al Hayah, Rotana, Dream, Al-Jazera

Sponsorship rights, communication lines,

Operations /Customer /Market Content Offering

Business Model

  Company Activities / SubsidiariesSources of

revenueMain Client Market

Maincompetitors

Cost

6Good News 4 Cinemas

Established for managing &operating cinema, Showrooms, Conferences & fairs inside & outside Egypt. (Grand Hyatt, Furure Mall, Deeb Mall, Masria Plaza, Porto Marina, MIU Cinema, Mansoura, Torgoman)

Advertising revenues, Sponsorship revenue, Cafe revenues, Ticket sales, Distribution and subscription revenues

Pepsi, Media Line, Mind Share, Coca Cola, MAS Agency

Egypt

Arab Company for Production and Dist., United Brothers

Rent expenses, show cost

7Good News 4 Café & malls

Entertainment Centers ( Dandy mall )

Advertising revenues, Sponsorship revenue, Cafe revenues, Ticket sales, Sound engineering, Restructure fees, Reward of cinema preparation

Al-Hamid , Starcom Agency

Abu Dhabi, Egypt

 Fixture and restructure, show cost

Operations /Customer /Market Content Offering

• In 2011 Good News Group reviewed the Group’s strategic pillars with the purpose of looking at how GNM could best continue to serve their audiences using the advances in technology and the rapidly changing media and entertainment landscapes. The outcome of this exercise was based on five key themes that constitute the strategic pillars of GNM for now and years to come:

Business ModelStrategy and Objectives

Market impact: we must well perceive the limits and boundaries of GNM in the media and entertainment markets and must realize the spaces in the market that we cannot and will not attempt to intrude.

Focus: we have a clear mission that we all believe in and we must have a specific focus on honestly delivering that mission to the nation.

Quality: in the content and the delivery to our audiences. Efficiency: Creating and delivering more entertainment and media content using the

adequate relevant resources. Diversification: of our entertainment & media content to suit all cultures, genders and

ages.

Content Offering

Financial performanceGrowth Strategy

Our growth strategy

M& E

Digital is acknowledged as the central driver of futureoperating models, consumer relationships and revenue growth.

Use partnershipstrategies that strengthen our proposition,drive efficiency and optimize customer attention.(Google,“ ILE DU FRANCE “)

Shift to

with…

our Company

Digital

Multiple business models

Content Offering

Our own media storefronts to facilitate online distribution and syndication.

Our growth strategy

• New expansion to drive continued revenue and income growth with 20% CAGR in the next 5 years.

Films Television Radio Media MusicE&M Sector

Content

Cinema&Art Movies

Programs

& Series

&Video Clips

Programs& Series

…

News & Current AffairsArticles

Private Albums

Delivery Cinema HallsHome Videos

(Video Cassettes, VCDs, DVDs,)

CableTerrestrial

Private &Public

BroadcasterFM Channels

NewspapersMagazines

CassettesCDs

MobilePhones

Internet

13% 5% 16% 10%4%

Games

Online games

CAGR 12-16

15%

CAGR12-16CAGR 12-16CAGR 12-16CAGR 12-16CAGR 12-16

--- - - - - Dotted line denotes Converged Delivery Mechanisms Straight line denotes Traditional Delivery Mechanisms

• Extend the reach of our content delivery to the new mediums.

Content Offering

Financial performanceInvestment Perspectives

Fast Growing

Middle Eastern

Market

• 15+% annual growth of Pan-Arab

M&E market in past 5 years.• Expected to grow to $27.9 bn in 2015

(10% CAGR 2011-2015).• Strong demand for Arabic content

driven by rising viewership, liberalization

& new media distribution channels.• MENA region mobile content/applications

market is forecast to grow at a 20% CAGR

through 2013.• Digital music sales expected to grow at 43% CAGR through 2013.• Egypt is the largest market for daily newspapers in the region. Its circulation is

expected to grow at a 4% CAGR 2008-2012 compared to the regional average of 1.5% CAGR.

• Egypt is the largest radio market size in MENA region with 49%share.

MARKET OPPORTUNITY and GNM POSITIONING

Investment PerspectivesContent Offering

Solid Track Record

• A significant revenue growth in past 5 years ,

which was exceeding growth rates of overall market.• We become one of remarkable mega media

companies in the MENA region through our successful

track record of diversifying across media platforms. • New expansion initiatives and existing content backlog

to drive continued revenue and income growth in excess

of 20% CAGR in the next 5 years.

Leading Brand

• Recognizable and respected brand associated with high-quality content production for the Arab world.

• Strength of GNM brand is also evident in the quality of creative talent that the company has been able to attract for the production of its movies and music.

Experienced Management

• Sponsor and key management team have combined almost 100 years experience in the M&E space in the Middle East.

• Deep insight on evolving trends and media technologies.

Diversification

• GNM continues to diversify its platform to expand the distribution of its content.• In the next 3 years, GNM will leverage its media expertise and content library to

expand into the free-to-air (FTA) TV space, starting with the Good News Bloomberg financial news channel.

MARKET OPPORTUNITY and GNM POSITIONING

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$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2005 2006 2007 2008 2009

Film & Music Digital Media Advertising Publishing

Cinema Radio & TV Non-core

Investment PerspectivesContent Offering

Financial performanceContacts

Works through an extensive array of strategic customers & partnersContacts

Thank You