PRESENTATION TO SHAREHOLDERS

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Index

1. Introduction2. Turnaround3. What we have achieved so far…4. Restructuring5. How will the Head Office Function?6. Entertainment7. EBITDA – Media & Retail Solutions8. Retail Solutions Divisions9. Media Division10. Newspaper Extinction Timeline11. Digital Strategy 12. Operational NAV – 31 December 2012

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Introduction

TMG operates in four divisions, Media, Retail Solutions, Books and Entertainment.

TMG currently holds a number of businesses not capable of delivering adequate

shareholder returns.

Each division faces a fast evolving market and difficult operating environment.

TMG is a relatively small business that needs to concentrate on its core competencies.

TMG needs to drive a narrower focus on Media and Retail Solutions.

Our intention is to channel TMG’s energy into innovation, newspaper and digital off a

lower cost base. The current cost base is currently out of kilter with size of TMG.

Management’s objective is to remove unnecessary costs and inefficiencies without

harming the core business i.e. “cutting the fat but not the muscle”.

Introduction1. Core Assets

⁻ Media – strong market presence, good brands, critical mass, profitable, good returns on capital.

⁻ Retail Solutions – Niche positioning, good strong cash flow, can develop through innovation and acquisitions.

2. Non-Core Assets

⁻ Entertainment – loss making for a number of years, requires large capex and working capital for no real return. Cinemas will require large capex.

⁻ Books – Low return on capital employed in the division.

These non-core assets together contribute very little to EBIT.TMG has a complex structure involving many companies which hampers efficient management and costs are high (Audit fees etc.).My main objective with TMG is to follow a decentralised model with a lean head office.

TurnaroundTurnaround involves two phases

1. Phase 1

Reducing central costs of the group head office and right cost base in divisions. Enhancement of cash generated within divisions. Aligning management with shareholder interests via share incentive scheme. Short term cash incentives to encourage outperformance and cost savings. Restructuring and sale of non-core assets and using sale proceeds to reduce acquisition

leverage. Enhancing of synergies between divisions where appropriate. Working on uniting the team and leading by example.

2. Phase 2

Position the company for the future. This may involve acquisitions, mergers or strategic partnerships.

What we have achieved so far…

Slimmed down Group Services and Head Office.

Divisions looking at further saving and more efficient ways of doing business.

Head count has been reduced so far at senior level. More to come.

Driving a more entrepreneurial culture.

We are looking through the divisions to determine what is non-core and a distraction

from management’s time for low to no returns.

Restructuring

Cost savings have been achieved through the ongoing restructuring exercise with TMG.

- From July to December 2012, headcount has been reduced by 139, at a cost of R13,3 million and an annual CTC saving of R47,4m.

- From January – June 2013, the headcount will be reduced by a minimum of 121, at a cost of R20m, and an annual CTC saving of R37,7 million.

The headcount reductions from January to June 2013 are mostly underway, and these savings will be achieved, and we expect further cuts within Entertainment Division which will push the annual CTC saving up. The Retail Solutions restructuring will also result in savings by 2013.

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How will the head office function?

Head office will be the allocator of capital. Capital will only go where TMG can earn

the highest returns.

All cash will flow from the divisions to head office.

Divisions will be decentralised and held to their mandate.

Head office will be kept lean with only a handful of staff.

Head office will manage debt repayments and cash flows of the Group.

Head office will sign off leases, asset risks etc.

Acquisitions and mergers will be led by head office to ensure we maximise returns

for the Group and shareholders and to ensure we get the best deal possible.

Entertainment Entertainment:

⁻ Nu Metro Cinemas and Films

⁻ Home Entertainment

⁻ ELS, CDT and AMD – merger options.

Gallo Records

⁻ Discussion with Warners to acquire Gallo Records excluding Gallo Publishing.

Gallo owns one of the largest music catalogues of South African music which

we believe will ultimately prove valuable.

Retail Solutions Divisions

Begun the process to properly integrate Hirt & Carter and Uniprint. Buy-in from both Hirt & Carter and Uniprint. We expect cost savings from the integration. We are currently looking at some small acquisitions to better the offerings of both

businesses. Ideally we would like to get critical mass in Johannesburg for both businesses. Challenges within Uniprint web losing the Trudon contract and underperforming in

other areas. Uniprint business is 30% behind budget and is currently 60% of last years turnover.

Media Division

All newspapers are profitable. Good return on capital. No Capex as we outsource printing. Editorial changes which are necessary to keep content fresh and relevant. We are looking at ways to lower distribution costs.

Warren Buffet quote on Newspapers

“Newspapers continue to reign supreme, however, in the delivery of local news. If you want to know what’s going on in your town – whether the news is about the mayor or taxes or high school football – there is no substitute for a local newspaper that is doing its job. A reader’s eyes may glaze over after they take in a couple of paragraphs about Canadian tariffs or political developments in Pakistan; a story about the reader himself or his neighbours will be read to the end. Wherever there is a pervasive sense of community, a paper that serves the special informational needs of that community will remain indispensable to a significant portion of its residents.”

“… I believe that papers delivering comprehensive and reliable information to tightly-bound communities and having a sensible

internet strategy will remain viable for a long time. We do not believe that success will come from cutting either the news content or frequency of publication. Indeed, skimpy news coverage will almost certainly lead to skimpy readership.”

“Our goal is to keep our papers loaded with content of interest to our readers and to be paid appropriately by those who find us

useful, whether the product they view is in their hands or on the Internet.” Warren Buffet

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Digital Strategy

TMG has a well advanced digital strategy across all our publications. Second largest news portal behind News24. The strategy is not to be the “pioneer” and spend vast sums of money when the

market is in infancy and changing constantly. Our sites are receiving good advertising flows. We are launching new initiatives using our content including internet radio.

Operational NAV – 31 December 2012