9M/12 - Axel Springer

Transcrição

12
Capital Markets Day
Berlin, December 11, 2012
CAPITAL MARKETS DAY 2012
“Successfully navigating towards digital”
Axel-Springer-Str. 65, 10888 Berlin
th
Room “Ernst Cramer”, 19 Floor
AGENDA
1
Keynote
Dr Mathias Döpfner, Chairman & CEO
2
Financials
Lothar Lanz, CFO & COO
3
DIE WELT– from No. 3 in print to No. 1 in digital
Jan Bayer, President WELT Group and Printing,
Romanus Otte, General Manager WELT Digital
4
BILD – A unique all-media brand
Dr Andreas Wiele, President BILD Group and Magazines,
Donata Hopfen, Managing Director BILD Digital
5
Widening and digitizing our international footprint
Ralph Büchi, President International Division
6
Key to digitization – M&A and asset development
Dr Jens Müffelmann, Head of Electronic Media,
Oliver Schäffer, Head of M&A / Strategy
7
Digital Panel
a) Roland Tripard, CEO SeLoger
b) Ralf Baumann, CEO StepStone
c) Stefanie Lüdecke, CSO zanox, Joachim Piroth, CFO zanox
8
Summary and outlook
Disclaimer
The following presentations, which have been issued by Axel Springer Aktiengesellschaft (the "Company"),
comprise the written materials/slides for the Capital Markets Day of the Company, held on December 11, 2012.
Whilst all reasonable care has been taken to ensure that the information and facts stated herein are accurate and
that the opinions and expectations contained herein are fair and reasonable, no representation or warranty,
express or implied, is given by or on behalf of the Company, any of its directors, or any other person as to the
accuracy or completeness of the information or opinions contained in these presentations or of any oral
information provided in connection therewith, and no liability, responsibility or obligation is accepted for any such
information or opinions.
These presentations contain forward looking statements which involve risks and uncertainties. The forward
looking statements speak only as of the date of these presentations and include the Company’s beliefs and
expectations and the assumptions underlying them, which may or may not prove to be correct. These statements
are based on plans, estimates and projections as they are currently available to the management of the
Company. The actual performance and results of the business of the Company could differ materially from the
performance and results discussed in these presentations.
The Company undertakes no obligation to update or revise any forward looking statements or other information
contained herein whether as a result of new information, future events or otherwise.
These presentations do not constitute or form any part of any offer or invitation to sell or issue, or any solicitation
of any offer to purchase or subscribe for, any shares in the Company, nor shall it or any part of it nor the fact of its
distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation
thereto.
1
Keynote
Capital Markets Day – Berlin, December 11, 2012
Clear long-term strategy for growth and
expansion
Strategy
Market leadership in
German-language
core business
Internationalization
Digitization
Profitable Growth
Creativity
Entrepreneurship
Corporate values
2
Dec. 11, 2012
Keynote
Integrity
Successful transition to digital
Axel Springer in 2004
Axel Springer in 2012
Digital
2%
Digital
35%
Europe’s
leading integrated
multimedia company
50%
digital
Print
65%
Print
98%
Our vision
50%
print
Strong brands
Digital activities represent 35% of revenues and
36% of EBITDA in 2012
3
Dec. 11, 2012
Keynote
Digital reach in Europe today
European media peers (unique visitors in million)
80.8
46.5
35.7
30.7
27.5
24.2
23.0
22.5
17.1
Source: comScore top 100 properties, October 2012
4
Dec. 11, 2012
Keynote
9M/12: Digital advertising revenues higher than
German print advertising revenues
Advertising revenues (in €m)
Advertising revenues (in % of group revenues)
+€304m
800
29%
700
-€39m
692
24%
23%
600
556
500
486
465
400
447
20%
19%
388
19%
300
200
100
0
9M/10
9M/11
Newspapers & Magazines
5
Dec. 11, 2012
9M/10
9M/12
9M/11
9M/12
Newspapers & Magazines
Digital
Digital
Keynote
WELT Group‘s joint newsroom model as a key
element of our current restructuring activities
Chief editors
2002
2012
Berlin content
Supraregional content
Hamburg content
Sports & Culture
Local news
Local news
Business
Politics
Sports
Entertainment
Event guides
Science
Culture
Sports & Culture
WK
WA
Photo editorial, graphic design, layout, back office
6
Dec.
2 11, 2012
Keynote
Successful paid digital content strategy is
reaching a new level
iPhone apps
2009
Paid models on
regional portals
7
Dec. 11, 2012
iPad apps
Android apps
2010
2011
iKiosk launch
2012
Kindle Fire and
Surface apps
Subscription model for
WELT’s browser-based
offerings
2013
Premium segment BILD+
Keynote
5 cases that exemplify the success of our digital
strategy
Core Competencies
Content portals
Audience
Advertisers
Performance marketing
Classifieds
Cross-synergies between core competencies increase revenues and profitability
8
Dec. 11, 2012
Keynote
I
aufeminin: Europe‘s #1 woman‘s network
International roll-out
Performance since year of acquisition
Acquisitions:
2008:
2011:
47%
#1
#1
52%
#1
16%
#1
#1
#1
53%
#1
84%
48%
#1
Own office
No office
Market position
FY2007
FY2011
Revenues International
9
Dec. 11, 2012
9M/2012
Revenues France
Keynote
Idealo: Germany’s #1 price comparison platform
Growth strategy
Performance since acquisition
Revenues
Categories
Products
- Consumer electronics
- Media
- White goods
- Hobby, gardening, etc.
- Fashion & furniture
Travel
2006
2011
2006
2011
- Flights
- Hotel
EBITDA
Tariff
- Energy
- Gas / heating
- Financial
Figures are calculated on a pro-forma basis
10
Dec. 11, 2012
Keynote
StepStone: Europe’s fastest growing job portal
Performance since majority acquisition
Buy-and-build strategy
Examples
Revenues Germany
Organic growth to market
leadership
Add-on acquisition of market
leader Totaljobs
2009
11
Dec. 11, 2012
2011
Keynote
zanox: Europe’s #1 performance marketing group
Buy-and-build strategy
Acquisitions:
2009 in UK:
2010 in UK:
2011 in NL:
Performance since acquisition
Revenues
#2
#2
#2
#1
#1
By acquisition
Organic Growth
#2
#1
#1
2007
2011
2007
2011
#1
#1
EBITDA
#1
#2
#2
Organic expansion:
Zanox figures are calculated on a pro-forma basis (excl. buy.at in 2007)
12
Dec. 11, 2012
Keynote
kaufDA: going fast track international
Business model
Internationalization
Research online – buy offline
(Retailer) Brands
Cost
per
Click
Performance since year of acquisition
Introduction of international brand bonial
Revenues Germany
France: launch of bonial end of 2011
Other markets with local partners
9M/2011
13
Dec. 11, 2012
9M/2012
Keynote
2006-2011: selling non-strategic assets, buying
digital growth businesses
Digital growth
businesses
Non-strategic
assets
~1,250 €m
Purchase price
~1,000 €m
~200 €m
EBITDA effect
<50 €m
EBITDA effect acquisitions: EBITDA 2011 (100%), EBITDA effect divestments: EBITDA in last full fiscal year under AS ownership
14
Dec. 11, 2012
Keynote
Digital growth initiative with further cross-media
synergies continues
Acquisitons show growth strategy
Transaction structure
Totaljobs Group (04/12)
30%
70%
UK market’s #1 in revenues and reach
Axel Springer Digital Classifieds
allesklar.com / meinestadt.de (08/12)
Unique regional content & classifieds portal
Immoweb.be (11/12)
#1 real estate portal in Belgium
15
Dec. 11, 2012
Keynote
2
Financials
Lothar Lanz, CFO & COO
Strong financial performance and EBITDA on
all-time high in 2011
Revenues in €m
EBITDA in €m
3,185
2,864
2,894
2,777
2,729
2,578
2,321
2,612
2,402 2,392 2,376
593
470
433
414
511
486
434
334
290
226
191
18.0% 17.3% 18.3% 18.2% 17.8%
7.8%
4.9%
1)
1)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Digital revenues
1)
Print revenues
According to HGB (German Commercial Code)
2
Dec. 11, 2012
Financials
17.6% 18.6%
12.8%
12.5%
1)
1)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
EBITDA
EBITDA margin
Increasing EBITDA contribution from digital
business
EBITDA in €m
Newspapers National
EBITDA
margin
28% 27%
Magazines National
25% 24% 24%
Print International
21%
21% 22%
20%
13%
20%
15% 16% 13%
16%
3%
364
16%
11%
7%
2007 2008 2009 2010 2011 9M/12
Digital Media
2007 2008 2009 2010 2011 9M/12
7%1) 6%
4%
2007 2008 2009 2010 2011 9M/12
12%
9%
2007 2008 2009 2010 2011 9M/12
349
296 283
244
197
158 166
74
101 103
89
71
55
61
11
2007 2008 2009 2010 2011 9M/12
1)
2007 2008 2009 2010 2011 9M/12
28
86
74
41
12
2007 2008 2009 2010 2011 9M/12
14
1)
21
43
2007 2008 2009 2010 2011 9M/12
Excluding dividend payment from P7S1 (€23m)
3
Dec. 11, 2012
Financials
Operating segments: Digital Media driving growth
In €m
Newspapers
National
Magazines
National
Digital
Media
Print
International
9M/12
9M/11
yoy
9M/12
9M/11
yoy
9M/12
9M/11
yoy
9M/12
9M/11
yoy
836.7
854.1
-2.0%
339.0
353.1
-4.0%
320.0
350.0
-8.6%
823.3
677.7
+21.5%
Circulation
454.5
464.5
-2.1%
233.1
240.4
-3.1%
191.3
204.1
-6.2%
-
-
-
Advertising
360.7
369.8
-2.5%
86.7
95.0
-8.7%
108.3
124.2
-12.8%
692.3
556.2 +24.5%
Other
21.5
19.8
+8.2%
19.2
17.7
+8.7%
20.4
21.7
-6.0%
130.8
121.5
+7.7%
EBITDA
197.2
203.6
-3.1%
71.0
82.1
-13.4%
41.1
56.8
-27.6%
165.9
111.9
+48.3%
Margin
23.6%
23.8%
21.0%
23.2%
12.8%
16.2%
20.2%
16.5%
Revenues
4
Dec. 11, 2012
Financials
Increasing transparency in the Digital Media
segment: 3 pillars along core competencies
Content portals &
other digital media1)
Performance
marketing
Axel Springer
Digital Classifieds
Real Estate
Major Assets
Bild + Welt Online
zanox
Seloger
aufeminin
Digital Window
Immonet
Onet
M4N
Immoweb.be
Azet
eprofessional
Jobs
finanzen.net
StepStone
Totaljobs
Idealo
Smarthouse
meinestadt.de
Schwartzkopff TV
1)
Includes minority interests in radio participations
5
Dec. 11, 2012
Financials
Growth and profitability in Digital Media
driven by classifieds and content
In €m
Content portals &
other digital media
Total1)
9M/12
9M/11
yoy
9M/12
9M/11
yoy
Performance
marketing
9M/12
9M/11
yoy
Axel Springer
Digital Classifieds
9M/12
9M/11
yoy
Revenues
823.3 677.7 +21.5%
261.7 209.0 +25.2%
326.6 312.1 +4.6%
234.9 156.6 +50.0%
EBITDA
165.9 111.9 +48.3%
57.1
46.1
15.9
18.5 -14.1%
101.8
54.6 +86.5%
20.2%
21.8%
22.1%
4.9%
5.9%
43.3%
34.9%
Margin
1)
6
16.5%
+23.7%
Total EBITDA includes costs of €8.8m in 9M/12 and €7.3m in 9M/11 (thereof business development, M&A
and other), not allocated to the three pillars
Dec. 11, 2012
Financials
Continuous cost management in print, cost
increase driven by digital
In €m
9M/12
yoy
Q3/12
yoy
Personnel
673.4
+8.2%
221.9
+4.3%
Purchased goods
and services
764.8
+0.2%
252.4
-2.9%
Other operating
589.3
+4.8%
200.6
+5.1%
2,027.5
+4.1%
674.9
+1.7%
Total Costs
Total costs up by €79.5m, only
due to consolidation effects and
growth in digital
Adjusted for consolidation effects,
total costs stable despite strong
organic revenue growth of digital
media
Increase in personnel costs due
to consolidation effects and buildup in digital media, stable in print
7
Dec. 11, 2012
Financials
Personnel costs in line with underlying business
development
Costs in €m
622
+8.2%
673
Trends behind organic increase
of 1.8% yoy
Print: excluding
restructuring expenses
slightly down
+1.8%
9M/2011
9M/2012
Consolidation effects, restructuring expenses and other non-operating effects
Personnel costs (adj.)
8
Dec. 11, 2012
Financials
Digital: increase due to
organic build-up of
business
Organic purchased goods and services costs
down
Costs in €m
Organic cost down by 2.4% yoy
+0.2%
765
763
Print: down yoy
Increase in digital, mainly
due to performance
based marketing
-2.4%
9M/2011
9M/2012
Consolidation effects
Purchased goods and services costs (adj.)
9
Dec. 11, 2012
Financials
Comfortable financial situation
Net financial debt1) in €m
12/31/11
09/30/12
Leverage with sufficient headroom
11/30/12
Low leverage of 0.3x as of Sep. 30, 2012
Leverage of 0.7x as of Nov. 30, 2012
after acquisition of Immoweb and
closing of Onet transaction
-198.8
Self-imposed maximum leverage of
1.5-2.0x leaves sufficient headroom
for further steps
~ -450
-472.8
1)
Excl. pension liabilities (12/31/11: -€327m, 09/30/12: -€385m) and treasury shares (12/31/11: 0.3m shares; 09/30/12 : 0.2m shares)
10
Dec. 11, 2012
Financials
Attractive financing secured
Credit line
Promissory note1)
Volume of 900€m
Volume of 500€m
Maturity in 2017
Maturity in 2016/2018
Secured in September 2012 to
refinance the former credit line
(maturity in 2013)
Successful transaction in April 2012
Initial margin below 50 bps, plus
additional margin increase depending
on utilization and company leverage
Favorable fixed interest rates for 64%
of the volume of 2.38% (4 years
maturity) and 3.06% (6 years maturity)
Initial syndicate consisting of 10 banks
1)
Schuldscheindarlehen
11
Dec. 11, 2012
Financials
Net income
In €m
9M/12
9M/11
Q3/12
Q3/11
188.7
233.2
29.1
82.0
Non-recurring effects
19.0
1.5
26.4
0.3
Effects of purchase price allocations
59.7
35.4
21.4
11.9
Taxes attributable to these effects
-10.5
-10.4
2.2
-3.0
256.9
259.6
79.2
91.2
38.6
32.2
14.0
10.4
218.3
227.4
65.1
80.8
98.7
98.7
98.8
98.8
2.21
2.30
0.66
0.82
Net income
Adjusted net income
Thereof attributable to non-controlling interests
Adjusted net income attributable
to shareholders of Axel Springer AG
Weighted average number of shares outstanding (in m)1)
Adjusted eps (in €)
1)
Based on weighted average number of shares outstanding in 9M/12 respectively Q3/12.
12
Dec. 11, 2012
Financials
Free cash flow / dividend
Free cash flow in €m
294
Dividend1)
(€/share)
299
Dividend volume in €m
286
261
239
0.22
0.40
0.48
0.57
1.17
1.33
1.47
1.47
1.60
231
220
1.70
168
157
131 131
122
107
37
45
52
22
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2007
2008
2009
2010
2011
9M/11 9M/12
1)
13
Dec. 11, 2012
Based on new number of shares after 3 for 1 share split in 2011
Financials
Financial highlights
Revenues
Growth driven by digital media
EBITDA margin increase to 19.1% in 9M/12
Margins
German print business with margins >20% and digital business
now at 20%
Capital
structure
Solid capital structure – credit line and promissory note in place
Payout to
shareholders
Sustainable dividend policy over the last years
14
Dec. 11, 2012
Sufficient headroom for investments
Financials
3
DIE WELT – from No. 3 in print
to No. 1 in digital
Jan Bayer, President WELT Group and Printing
Romanus Otte, General Manager WELT Digital
Agenda
2
1
Delivering results
2
Finding efficiencies
3
Driving innovation
4
DIE WELT DIGITAL – how it works
Dec. 11, 2012
DIE WELT – from No. 3 in print to No. 1 in digital
Critical success factors of our business
Audience
Innovation
3
Dec. 11, 2012
Advertisers
Efficiency
Delivering results
The WELT Group: most extensive reach and fastest
growing media brand in quality newspaper segment
CAGR (2010 – 2012)1)
Crossmedia net reach (in m)
12%
4.5
7%
3.6
3.2
11%
2.7
-1%
1) Population expansion in ma 2010
Source: VA 2012-I; Basis: Readers per issue, users per week
5
Dec. 11, 2012
DIE WELT – growing print reach and an increasingly
young readership
Reach (in m)
Reach 14 to 29 year olds (indexed)
CAGR (2010 – 2012)1)
1.6
140
1.48
134
+8%
1.4
130
1.2
120
1.0
0.94
0.8
0.86
116
-1%
+10%
110
100
0.6
0.0
2010
95
2011
2012
0
2010
1) Population expansion in ma 2010
Source: ma Tageszeitungen 2010 - 2012
6
Dec. 11, 2012
2011
2012
WELT am SONNTAG – Leadership in reach further
extended
Reach (in m)
Reach / spread
1.4
CAGR (2010 – 2012)1)
1.2
1.1
+1%
0.7
-16%
1.0
0.8
0.6
0.4
0.2
0.0
2010
(ma II)
2011
(ma II)
2012
(ma II)
1) Population expansion in 2010
Source: ma Presse, Basis: Readers per issue
7
Dec. 11, 2012
DIE WELT Online reaches more people than each of
its competitors
Unique visitors (in m, average per month 9M/12)
4.86
3.51
2.27
1.84
Source: comScore Europe Media Trend
8
Dec. 11, 2012
Strong performance in print advertising market –
DIE WELT and WELT am SONNTAG making gains…
Change in gross expenditure on print advertising (9M/11 to 9M/12)
National daily newspapers
National Sunday newspapers
+4.5%
+2.4%
-1.2%
-10.5%
-13.3%
Source: Nielsen, gross expenditures excluding media advertising
9
Dec. 11, 2012
… and DIE WELT is demonstrating particularly
strong growth in the online advertising market
Change in gross expenditure on online advertising / revenues (9M/11 to 9M/12)
+32%
+18%
Online advertising market Germany
WELT ONLINE
Source: Nielsen
10
Dec. 11, 2012
DIE WELT App well-established in top field – one of the
highest revenue generators in the German iTunes store
Top 10 Revenue Ranking (German iTunes store)
Games
Games
Games
News
BILD and DIE WELT
are the highest ranked
“non-game” apps
News
Productivity
Games
DIE WELT app is No. 5
– with >130k other
paid apps behind
Games
Productivity
News
Source: iTunes Store iPad App Ranking (Dec. 2012), xyologic
11
Dec. 11, 2012
Finding efficiencies
“Online-to-Print” – the next step in the evolution of
the newsroom
13
2002
First joint newsroom in Germany (WELT Group
and BERLINER MORGENPOST)
2006
First fully integrated print/online newsroom
2012
Online-to-Print –
Realignment of the editorial organisation
Dec. 11, 2012
Building on strengths: extension of successful joint
newsroom model to HAMBURGER ABENDBLATT
14
Local
National
Local
BERLINER
MORGENPOST
WELT Group
HAMBURGER
ABENDBLATT
Dec. 11, 2012
Joint newsroom pays off: product range greatly
expanded
2002
15
2012
Dec. 11, 2012
At the same time, high cost discipline exercised –
with further savings potential of up to 20%
Development of editorial costs WELT Group
24%
up to
20%
2001
Realised
cost savings
2011
Potential
cost savings
Note: including collective wage increases
16
Dec. 11, 2012
Target 2016
Success through continuous cost management across
the value chain – e.g. printing plants
Development of costs of Axel Springer printing plants
21%
up to
15%
2001
Realised
cost savings
2011
Potential
cost savings
Note: including collective wage increases and depreciation, not including consumables (e.g. paper)
17
Dec. 11, 2012
Driving innovation
Target 2016
Our goal: market leader in paid digital quality
journalism – with two revenue streams
Market leadership
Digital advertising
Paid content
Strong and
sustained
momentum in
recent years
Very good
experiences with
app-based
products
High quality content and products
19
Dec. 11, 2012
A successful portfolio of paid digital content
established within three years
First national daily
newspaper on the
iPad
Launch of the
iPhone app
2009
2010
Introduction of paid
models on regional
portals
20
Dec. 11, 2012
Launch of DIE
WELT on the
Kindle e-reader
2011
Launch of the Android
app – first national daily
newspaper on all
relevant platforms
Launch of the DIE
WELT app on the
Kindle Fire
2012
DIE WELT is part of
the newsfeed on the
Surface
We are now integrating our browser-based offering
into this portfolio – based on both revenue streams
Revenue increase with extension of business model
Clear goals
Gaining digital subscribers while ensuring participation in
dynamic online advertising market
Usage-dependent Metered Model
Flexible model
High flexibility and agility in operative management
Initially 20 articles per month viewable for free
Comprehensive market research with almost 2,000 users
Extensive
preparation
Experience of numerous executives from international
publishers (e.g. NYT, WSJ)
Definition of market driven product bundles
21
Dec. 11, 2012
Clear and simple product offering structure
22
Dec. 11, 2012
In the US paid content is gaining momentum
US newspapers with a paid model for online offerings
Already 300+
newspapers
with paid model
11%
14%
Dec. 2011
June 2012
Newspapers with paid model
23%
Dec. 2012
Newspapers without paid model
Note: Newspapers with paid models (Nov 2012), Number of US Dailies (2011)
Source: PEW Research, Newspaper Association of America, paidcontent.org, newsandtech.com
23
Dec. 11, 2012
US publishers pursue different paid strategies –
Metered Model dominates
Paid content strategies1)
Lockdown
Freemium
Metered
>80%
1) Share for Metered Model based on 2012 NAA study comprising 156 newspapers
Source: Newspaper Association of America, paidcontent.org
24
Dec. 11, 2012
The paradigm shift is looming in Germany as well
Will paid content be implemented for regional publishing houses?
8%
46%
46%
Yes
Likely
Unlikely
Source: Schickler Management Consulting (08/ 2012)
25
Dec. 11, 2012
Success cannot be determined in advance.
Its foundations can be.
Strong starting position
DIE WELT has the greatest online reach of any brand in the quality
newspaper segment and is continuously extending its position
Extensive experience with subscription models
We have more than 50 years experience in print and are a pioneer in
digital subscription models
Journalistic and technical excellence
A high quality, technologically flawless offering with added value for
the user is the basic prerequisite for success
26
Dec. 11, 2012
DIE WELT DIGITAL
How it works
DIE WELT
Transition from print follower to
digital leader
4
BILD – A unique all-media brand
Dr Andreas Wiele, President BILD Group & Magazines
Donata Hopfen, Managing Director BILD DIGITAL
BILD
is a UNIQUE
brand
Photo credits: ullstein bild - imagebroker.net / Petra Wallner
2
Dec. 11, 2012
BILD - A unique all-media brand
…but don‘t we
all believe
we are UNIQUE?
Photo credits: ullstein bild - imagebroker.net / Petra Wallner
Dec. 11, 2012
3
9
reasons why BILD is truly unique!
BILD is unique in …
4
1
Reach
2
Readership
3
Editorial competence
4
Mass impact with powerful and sophisticated topics
5
Highlight publishing events
6
Distribution power
7
Pricing
8
Magazine business
9
Digital pioneering
Dec. 11, 2012
REASON 1: UNIQUE REACH
BILD reaches more people than any other medium in
Germany
Print reach is in general high in Germany
Comparison of media reach (Germany vs. USA)
In % (2011)
BILD-reach higher than TV
Comparison of the biggest print and TV reach
In million readers / viewers (2012)
American Idol
93
19.8
12.3
70
52
50
I'm A
Celebrity...
Get Me
Out Of
Here!
The Mentalist
Coronation
Street
10.4
8.4
7.2
6.5
3.2
2.2
Newspaper
BILD
Magazine
WSJ
L’Equipe
The Sun
Source (Left side): GER: MA Intermedia 2011, D+EU 14+; USA: Media Dynamics 2011, 18+; Source (Right side): GB: TV reach of Coronation Street , BARB
(Broadcasters Audience Research Board) week ending 22.07.2012; average reach of The Sun, July – Dec. 2011 NRS (National Readership Survey); USA: MRI 2012 Nielsen TV Ratings United States, American Idol - Wednesday: ©2012 The Nielsen Company; F: audipresse: ONE2011 (results: 22 Mars 2012), mediametrie TOP 100
DES AUDIENCES ANNEE 2011; D: Average of I'm A Celebrity... Get Me Out Of Here! (01.01-31.07.2012), viewers (14+ years), AGF/GFK-Fernsehforschung, TV Scope;
ma 2012 Pressemedien II (D+EU);
5
Dec. 11, 2012
REASON 2: UNIQUE READERSHIP
The BILD brand reach consistently grows with little
self-cannibalization
BILD and BILD.de – total net reach
In million readers / unique users
22.5
22.6
21.3
unique users
(million
per month)
15.9
10.3 m
exclusive
users
reach
(million
per day)
20091)
20102)
2011
2012
1) changes
in the AGOF survey method unit from 2010 onwards
2) changes in VA basis unit from 2010 onwards
Source: VA 2012 Klassik II, print: reader per issue, online: user per month (full capacity assumed)
6
Dec. 11, 2012
+
2.8m
+
= 22.6 m
total net reach
9.5 m
exclusive
readers
REASON 2: UNIQUE READERSHIP
BILD has more female, educated and young readers
than any other print medium
Young readers
Women
Reach among 14-29y
In million readers (2012)
Academic education
Reach among females
Reach among readers with academic
education
5.6
2.2
1.6
4.5
0.7
Bravo
2.6
0.7
Brigitte
FAZ
Source: ma 2012 Presse II; reader per issue in million and in %
7
Dec. 11, 2012
REASON 3: UNIQUE EDITORIAL COMPETENCE
BILD’s journalism is…
…powerful

…award-winning
800 editors produce 26 regional print editions
700 BILD-pages every day
Up to 250 online articles
800 – 1,000 photos each day and more than
1,000 videos per month
HERBERT
AWARD
…exclusive

All Information is independently researched
…most-quoted
Quotations within general news media in Germany
No reprints of wire news
Exclusive information on a regular basis
2,181
Supported by reader-journalists all over the
country (>800,000 photos sent in so far)
Source: PMG Presse-Monitor „PMG Zitate-Ranking“, H1/2012
8
+
Dec. 11, 2012
1,740
927
REASON 4: UNIQUE MASS IMPACT
BILD stimulates debates with powerful and
sophisticated topics
Powerful
Sophisticated
2012: „Art and Press” exhibition:
56 artworks from Joseph Beuys,
Damien Hirst, Gerhard Richter,
Ai Weiwei and many more
2009: „60 Jahre – 60 Werke“:
60 selected masterpieces from 60 years
of the Federal Republic of Germany
Annually: “Ein Bild für BILD” –
Artists such as Christo, Jörg Immendorf,
Markus Lüpertz and Günther Uecker
produce unique artwork for BILD
„Sternblume“ – Heinz Mack
9
Dec. 11, 2012
REASON 5: UNIQUE HIGHLIGHT PUBLISHING EVENTS
BILD breaks records with unprecedented projects

720 title pages
Weight: 12 kg

All photos, graphics and campaigns
printed in red-cyan anaglyphs
With 3D-glasses enclosed
Delivered to 41m households by
50,000 postal workers

Double BILD’s usual format size
Surface area as large as 18 iPads
52.8 x 77.7 cm
BILD XXL
Six BILD editions of the Bible since
2004
About 1,000,000 copies sold in total!
BILD Bible
10
Gift edition for BILD’s 60th birthday
BILD for Everyone
BILD 3D

37.2 x 53 cm (original newspaper
format)
The BILD Book

Dec. 11, 2012

Featuring all BILD front pages and
chronicle events of the year
> 40,000 copies
Sold out every year
BILD Yearbook
REASON 6: UNIQUE DISTRIBUTION POWER
The BILD point of sale (POS) network is much denser
compared to the US press POS network
Germany
USA
32
2
BILD POSs
per 100 km²
press POSs
per 100 km²
Source: UK: CIA World Factbook, Germany: Statistisches Bundesamt; BILD POS: average 9M/2012 (own reporting), USA: CIA World Factbook; VDZ, 02/2011
11
Dec. 11, 2012
REASON 7: UNIQUE PRICING
BILD still cheap – despite regular price increases
Average BILD copy price development1)
In €
0.70
0.65
0.65
0.64
0.60
0.58 0.59
0.55
0.51
0.50
0.50
0.45
0.48
0.42
0.40
2002
2003
2004
2005
2006
2007
2008
Source: IVW 2002 I – 2012 III; 1)weighted average of copy prices by circulation per regional edition (retail only)
12
Dec. 11, 2012
2009
2010
2011
2012
REASON 8: UNIQUE MAGAZINE BUSINESS
Our magazine titles are the clear number one in
each of their segments
Automotive
Computer
Sports
Women
Share
In %, Q3/2012
40
57
49
20
23
21
13
kicker
Brigitte
11
auto motor
sport
c’t
Source: Company estimates based on IVW I-III 2012, paid circulation; weighted market share taking into account different title frequencies
Dec. 11, 2012
13
REASON 9: UNIQUE DIGITAL PIONEERING
BILD is market-leader on every new channel
Print
Online
1952
Mobile
1996
2007
2009
2010
#1
#1
of German
newspapers
of news portals
of mobile portals
of news apps
Paid content
Free content
Free content
Paid content
+
+
+
+
29,5 Mio.
Advertising revenues
Sources: ma Presse 2012 II, AGOF internet facts (06/2012), AGOF mobile facts 2012-I
14
Apps
Dec. 11, 2012
#1
#1
Lesen mindestens
einen Titel1)
(Currently) moderate
advertising revenues
There are market leaders
that
than
that are
are more than
one
ahead…
one step
step ahead…
Photo credits: ddp images/dapd/Oliver Lang
15
Dec. 11, 2012
Today, in terms of revenues, BILD.de leaves the
competitors behind
Premium
TV ads
Non-core segments
Mobile ads
Traditional
BILD.de ads
Tomorrow
Today
Schematic illustration
16
Dec. 11, 2012
Tomorrow, BILD.de is going to fortify its leadership by
increasing existing revenue streams and innovative
new products
Tomorrow
Today
17
Dec. 11, 2012
TheseThese
market
marketleaders
leaders
are never satisfied
Photo credits: Michael Steele/Getty Images
18
Dec. 11, 2012
BILD digital has once again demonstrated its
innovation leadership in the last year
Design
Big screen
19
Dec. 11, 2012
User flows
Multichannel
Segmentation
Sports
No other news portal in Germany can transfer content
into a more powerful visual language than BILD.de
20
Dec. 11, 2012
Need-orientated user flows at BILD: High-traffic articles
are intelligently combined with other attractive offers
21
Dec. 11, 2012
As of 2012, BILD is available on nearly all relevant
digital devices
iPhone
Android
phone
iPad
Windows 8
tablet
Android tablet
Android reader
2009
22
Dec. 11, 2012
2010
2011
Windows 7
phone
2012
Through cooperations with most manufacturers and
providers, BILD is also present on the big screen –
THE driver for video views
23
Dec. 11, 2012
STYLEBOOK has successfully established itself
among the top 10 woman websites in Germany
Stars
Fashion
Beauty
24
Dec. 11, 2012
BILD leads football fans into the digital age: meinKlub
launched a highly innovative Facebook app and is
present on Mobiles and TVs
Smartphone
apps
25
Dec. 11, 2012
Facebook app
TV app
But
wait
a minute…
Photo credits: ddp images/AP/Mark Allan
26
Dec. 11, 2012
The real innovation is to be launched next year
27
Dec. 11, 2012
BILD+, the premium segment of BILD, is expected to
become a substantial part of our future business
Premium
Tomorrow
Today
28
Dec. 11, 2012
The uniqueness of the BILD brand requires a unique
model: The following options are available
premium
Content
free
prem.
Intensity of use
Countdown /
Metered Model
= Premium
29
free
free
Content
Content
premium
Additional Content
Dec. 11, 2012
Intensity of use
Freemium Model
Home
Intensity of use
Complete Paywall
The user will be driven into BILD+ elements from
everywhere on the free website
30
Dec. 11, 2012
From 2013 as part of our Premium Service on all digital
platforms: Bundesliga video highlight clips on BILD.de
2QHKRXUDIWHU
HQGRIPDWFK
+LJKOLJKW&OLSV
$OOFKDQQHOVRQOLQH
DSDUWIURP,379
31
Dec. 11, 2012
([FOXVLYH
Acquisition of Bundesliga video highlight rights is a
consequent step to achieve BILD’s strategic goals
Sports
Video
Expansion of opinion
and market leadership
in the field of sports
on all digital devices
Sports 24/7 @BILD.de
32
Dec. 11, 2012
Next step after
entering video market
(connected TV-apps)
Creating innovative
web video formats
Premium
Initiating paradigm
shift
Establishing attractive
paid content offerings
on all digital devices
Key elements that will drive our offer
Key elements
Bundling and pricing
Integration of newspaper into bundles
Offer will be based on…
…in-depth market research
…experiences of WELT
…gut feeling
…and most importantly on
customer needs!
Look and feel of Bundesliga product
and bundling
33
Dec. 11, 2012
=bbcjUh]jY
aUf_Yh `YUXYfg Xcbch
ZYUf h\Y W\U``Yb[Y
Photo credits: ddp images/AP/Ferrari Hand Out
34
Dec. 11, 2012
Innovative
market leaders
win!
Photo credits: ddp images/AP/Ferrari Hand Out
35
Dec. 11, 2012
From ‘Baby’ to ‘Bolt’! The brand’s uniqueness results
in unique profitability
BILD brand TOTAL
EBITDA development (indexed)
129
100
Photo credits: ullstein bild - imagebroker.net / Petra Wallner; ddp images/AP/Ferrari Hand Out
2003
Index-base-year 2003
36
Dec. 11, 2012
2011
5
Widening and digitizing our international
footprint
Ralph Büchi, President International Division
International business growing strongly
International acquisitions and launches 2007-2012 (selection)
2007
2008
2009
2010
2011
9M 2012
1)
1)
Russia
online
Russia
Share of international revenues (in %)
21%
2007
1)
2
28%
2010
onet.pl and immoweb.be to be consolidated in Axel Springer accounts as of November 2012
Dec. 11, 2012
34%
9M/2012
International print markets facing heavy
challenges
Axel Springer
Print International revenues (in €m)
Advertising market outlook (in USDm)
CEE
5.108
4.519
4.424
4.419
2.279
2.266
2.290
2.576
2.240
2.158
2.129
2011
2012
2013
2014
37.600
36.111
35.358
26.719
24.951
23.987
23.526
13.500
12.649
12.124
11.832
2012
2013
2014
350
2.532
320
204
191
Western Europe
40.219
124
108
22
9M/2011
Circulation revenues
20
2011
9M/2012
Other revenues
Newspapers
Magazines
Source: Company data; ZenithOptimedia 12/2012
3
Dec. 11, 2012
Keeping our print portfolio attractive
Three key success
factors
4
Dec. 11, 2012
I
Continuous cost
management
II
Market leadership/
portfolio
management
III
Attractive
multimedia brands
+
I
Successful cost management absorbing 50% of
the revenue decline in 2012
Cost management measures of segment Print International
Cost saving measures
Continuous cost benchmarking within
international activities
Roll-out of newsroom concepts to
increase output and cost efficiency
Optimization of marketing and
production costs
Closing of printing plants
Financial effects
Revenues decline
9M/2012 vs 9M/2011
-30.0
€m
EBITDA decline
9M/2012 vs 9M/2011
-15.7
€m
Outsourcing of services/re-negotiations
of service contracts
Reduction of license fees
5
I
Dec. 11, 2012
Cost benchmarking: A major project has been
started in the biggest JV country Poland in 2011
Net effects on costs so far
Annualized FX adjusted:
Total overhead costs (in € thousands)
-13.1%
1. Overhead savings
2011
2. Editorial savings
2012
3. Online productivity
4. Sales productivity
Poland
Total effect: + 6 €m
6
Dec. 11, 2012
Cost management: Newsroom integration in the
Czech Republic, Step I
I
Newsroom integration
7
II
Dec. 11, 2012
Results so far
Output in editorial pages
+13%
Productivity increase
+24%
Editorial costs
-14%
Market leadership: JV with Ringier in Central
Eastern Europe (PL, CZ, SK, SB)1)
Indexed revenues before and after JV creation2)
300
Axel Springer (PL, CZ)
before JV
Success drivers
Print leader in four markets
After JV
266
250
223
Digital revenue share has
reached 25% within three
years
200
Digital leader in three out of
four markets
150
100
100
One of the most profitable
media companies in most of
its markets
50
2%
0
2009
Print revenues
1)
8
25%
7%
2011
9M/20123)
Share of digital revenues as of total revenues
PL – Poland, CZ – Czech Republic, SK – Slovakia, SB – Serbia; 2) Indexed, 2009 = 100;
Dec. 11, 2012
3)
Including ONET on a pro-forma basis
II
Market leadership: Outperforming market trends
Print advertising market
CAGR market
2008-2012
Poland
Czech
Republic
CAGR JV company
2008-2012
Market share
JV company
2008
2012
-15.9%
-12.3%
10.3%
12.2%
-14.8%
-11.8%
19.4%
22.4%
-19.7%
-13.4%
23.9%
32.3%
-10.5%
-2.2%
28.9%
41.0%
Slovakia
Serbia
Source: PL: Zenithoptimedia for 2008-2011, Company data for 2012, SB: Company data, CZ and SK: Group M
9
II
Dec. 11, 2012
NEWSWEEK in Poland: from No. 4 to No.1 within
one year
Average sold circulation (in kEx)
CAGR
145
+25%
140
135
130
+9%
-4%
125
-5%
120
115
0
May 2011
Jan 2012
Source: Polish bureau of circulation audit
10
Dec. 11, 2012
July 2012
III
Multimedia brands: BLESK mobil
in the Czech Republic as a successful case
BLESK market leadership
BLESK mobil
First virtual operator in the Czech Republic;
launched in October 2012 with Telefonica O2 (TEF)
Best selling and most popular national daily in the
Czech Republic
Business model: revenue share and
commissions from SIM card activation
Readership: 1.2 mln readers
Free access to BLESK.CZ; ISPORT.CZ; AUTO.CZ;
BLESKMOBIL.CZ
Circulation (in thousands):
376
273
Activated customers so far > 60,000
ǻ 27%
Learning and know-how transfer from BILD mobil
Source: Median.cz, 2Q2/2012; ABC September 2012
11
Dec. 11, 2012
Digital revenue share increased by over four
times within five years
International revenues development (in €m)
Results
1.048
Total revenues
+18%
CAGR 2007-2011
827
Digital revenues
CAGR 2007-2011
537
49%
55%
2011
9M/2012
12%
2007
International revenues
12
Dec. 11, 2012
Share of digital revenues as of total revenues
+69%
The roadmap to successful digitization
I
Roll-out of
successful
business models
II
Building digital
market leadership
by new and add-on
investments
Two ways to develop
international
digitization
13
I
Dec. 11, 2012
Roll-out of successful business models:
aufeminin.com
From „french focus“ to No.1 women‘s portal in eight European countries
Revenues development (in €m)
Market position in Europe
47
CAGR +20%
37
47%
#1
52%
#1
#1
23
16%
#1
#1
#1
53%
84%
#1
48%
#1
FY2007
FY2011
Revenues International
14
Dec. 11, 2012
9M/2012
Own office
No office
Revenues France
Market position
Add-on investments as a second vehicle for
business growth: AUFEMININ.COM
II
Acquisition June 2008
Acquisition August 2011
Leading portal about health in German-speaking
countries with 2.4 m unique users
Leading British parental website
with 1.5 m unique users
Launch 1997; acquisition of 100% stake
Launch 2000; acquisition of 100% stake
In April 2012 start of ONMEDA internationalization
with launch of ONMEDA in Spain
AUFEMININ.COM is already present in the UK with
SOFEMININE.CO.UK
White-label health channel on beobachter.ch in
Switzerland started in July 2012
The acquisition reinforced AUFEMININ position
as the leading website for women
The acquisition supported AUFEMININ
international growth and significantly contributed
to revenues increase
Revenue streams: advertising, content,
government, affiliate programme
Strengthening of Pan-European advertising
campaigns
Revenue streams: advertising, content licencing
15
Dec. 11, 2012
Building digital market leadership in key
markets: ONET.PL
III
Market position
Screenshot
14.5
14.0
1.1x more
visits
13.5
Real users (m, monthly)
13.0
1.3x
more
users
12.5
12.0
Strategic fit and synergies
11.5
11.0
10.5
10.0
0
0
80
90
100
110
120
130
140
150
160
170
75% - Ringier Axel Springer Media
25% - TVN
Purchase price: 215 €m
Biggest news and entertainment portal in Poland with a
reach of 77%
High profitability
Many add on services: Email, dating and gaming
Strong own R&D department (DreamLab)
Crossmedia marketing with RAS Polska and TVN
Visits (m, monthly)
Note: Size of circles describes number of page views
16
Dec. 11, 2012
Strong partnerships as additional success driver
Axel Springer share
Partner
70.0%
Industry
Private Equity
Media
75%
(RASM JV share)
52.5%
17
Dec. 11, 2012
Advertising
Last but not least: our first footprints in Brazil
(“by kaufDA”)
So far 60 clients, e.g.
Groupon, TAM airlines and
Kanui
Launch December 2011
Launch July 2012
Actual Number of publishers:
20,000
18
Dec. 11, 2012
Start as a JV with two local
enterpreneurs, kaufDA (56%)
Market leader in Brazil since
launch; No. 1 in iTunes free
apps
In discussion and pilot phases
with all major retailers in
Brazil
6
Key to digitization –
M&A and asset development
Dr Jens Müffelmann, Head of Electronic Media
Oliver Schäffer, Head of M&A / Strategy
Axel Springer about a decade ago
“With regard to
“... the chaotic webelectronic media,
sandbox of Springer...”
Springer is completely
underdeveloped”
“Europe‘s largest press
conglomerate – a mere
internet midget. At least
they have a strategy now“
May 1999
October 2000
2
Dec. 11, 2012
May 2000
Digital reach in Europe today
European media peers unique visitors in million
80.8
46.5
35.7
30.7
27.5
24.2
23.0
22.5
17.1
Source: comScore top 100 properties, October 2012
3
Dec. 11, 2012
Digital Media: top-line / bottom-line
Revenues in €m
EBITDA in €m
823
2006 2007 2008 2009 2010 2011 9M/
2012
9M/12
2006 2007 2008 2009 2010 2011 9M/
2012
Consolidated figures, 2006-2011 based on Annual Reports, 2012 based on Q3 Report
4
Dec. 11, 2012
166
9M/12
Attack since 2006
By acquisition
2006
2007
By acquisition
Organic
Divestments
Σ
5
2008
2009
2010
67
90
8
149
Dec. 11, 2012
2011
2012
Organic
Clear investment criteria
Strategic fit: where we can provide leverage
Proven and scalable business models
Clear path to profitability / profitable businesses
Experienced management / commitment
Reasonable valuation
6
Dec. 11, 2012
M&A digital majority acquisitions 2006-2011
In €m
~1,250
Purchase price
~ 1,550
~ 200
Valuation
for 100%
EBITDA 2011
(100%)
~ 8î
EV/EBITDA
7
Dec. 11, 2012
2006-2011: selling non-strategic assets, buying
digital growth businesses
Digital growth
businesses
Non-strategic
assets
~1,250 €m
Purchase price
~1,000 €m
~200 €m
EBITDA effect
<50 €m
EBITDA effect acquisitions: EBITDA 2011 (100%), EBITDA effect divestments: EBITDA in last full fiscal year under AS ownership
8
Dec. 11, 2012
M&A activities 2012
In €m
Acquisitions
9
Disposals
(75%)
215.0
(100%)
132.0
(100%)
~50.0
(80%)
127.5
Other
~5.0
Total
~530
Dec. 11, 2012
Axel Springer
(30%) 237.0
Digital Classifieds
~11î
Other
~15.0
Total
~250
Ø 2012e
EV/EBITDA
Net invest: ~280
Price discipline at acquisition of growth companies
Digital majority acquisitions 2006 - 2011
EBITDA-Multiple
pro rata
At acquisition date
2011
12î
8î
Bought at
fair valuation
Leverage through
performance
2012e
< 7î
Further positive
development
At acquisition date: including sale of StepStone Solutions as negative purchase price; 2012e: benchmark: EV/EBITDA 2012e of European internet stocks
currently at 11.4x (Source: UBS Internet Sector Update as of October 22, 2012)
10
Dec. 11, 2012
Our principles as digital shareholder
Retaining founders / management
Operational independency of management
Maintaining growth momentum
Realistic view on synergy potential
Situational “short leash” / “long leash” management
Slim holding structure
No colonial masters
No cultural clash
Source picture: INTERTOPICS
11
Dec. 11, 2012
Pushing for market leadership
Market position
in acquisition year
12
(DE)
2006:
#5
(Europe)
2007:
#2
(UK)
2009:
#3
(DE)
2009:
#2
(DE)
2010:
#3
Dec. 11, 2012
Market position
2012
Portfolio of market leaders
Women portal
Infotainment portal
Price comparison
Affiliate marketing
Car and motor community
Finance portal
Real-estate marketplace
Online prospectus / coupons
Soccer community
Financial web applications
Job board
Affiliate marketing UK
13
Dec. 11, 2012
Creating synergies through our network
EXAMPLES
With Axel Springer
Financial
IT Systems
Procurement
HR
…
…
Discounted media campaigns
…
Legal, tax, M&A Marketing
…
Shared content and traffic
Corporate services
Jobs classifieds integration
Cross-integration of services
Real-estate classifieds integration
Real-estate classifieds integration
Prospectus integration
Performance marketing
Among the assets
14
Dec. 11, 2012
Networking and knowledge-sharing events
EXAMPLES
Media Entrepreneurs initiative Digital CFO Event
Digital CEO Summit
Online Marketing Camp
Working Lunch Session “Facebook optimization”
Hy Berlin
Social Media Club & SEO workshop
Digital CTO Workshop
Silicon Curry
15
Dec. 11, 2012
Brown Bag Sessions
Digital Cup Volleyball
…
Strong post-acquisition development 2006-2012
Top 10 digital acquisitions 2006-2011, based on revenues
Market
CAGR since 2006
Revenues
Ø CAGR since acquisition date
EBITDA
Ø CAGR since acquisition date
Market growth: Weighted market CAGR 2006-2012 based on ZenithOptimedia, PwC and HDE
16
Dec. 11, 2012
+15%
+29%
+48%
Case study: building global classifieds
Phase 1
Phase 2
Setting
the ground
17
Dec. 11, 2012
Phase 3
Joining
forces
Leveraging
Phase 1: setting the ground around three core
investments
2004 49.9% in StepStone
Deutschland AG
2001 100% in PropertyGate
2002 association IVD (former RDM)
acquired 25.1% stake;
foundation/change of name to
Immonet GmbH
2008 acquired in a first step 15% in
StepStone ASA and increased
its stake to 33.3%
2009 extended majority stake in
StepStone ASA from 52.7% to
87.8%; mandatory offer to all
remaining shareholders and
squeeze-out / delisting
2003 combining of sites
www.rdm-immonet.de and
propertygate.com to immonet.de
2006 100% in Immonet GmbH
2010 acquired 12.4% stake in
Seloger.com SA and launch
of public tender offer
2011 successful completion of
public takeover during reopened offer; increased stake
from 74.2 % to 98.7% and
squeeze-out/delisting
2007 100% acquisition of
Wohnfinder.de
2010 sale of StepStone “Solutions”
business unit
2011 acquired 9.4% stake in
iProperty.com and increased
stake to 16.1%
2010 majority acquisition
Umzugsauktion.de
2011 100% acquisition of Jobanova
2011 100% acquisition of a-Gites
16
~800 €m
~222 €m
~68 €m
Transactions
Total invest
Revenues 2011
EBITDA 2011
Revenues and EBITDA 2011: consolidated figures
18
Dec. 11, 2012
Phase 2: joining forces with General Atlantic
70%
30%
Axel Springer Digital Classifieds GmbH
19
Dec. 11, 2012
GA-Partnership shows significant value step-up
in underlying assets
Axel Springer
investments
Purchase prices and investments
~800 €m
Sale of StepStone “Solutions”
business unit
~110 €m
Utilized tax effects
Net investment
~50 €m
~640 €m
+ ~100%
General Atlantic
deal
20
Dec. 11, 2012
Enterprise value
1,250 €m
Embedded loan
460 €m
Equity value
790 €m
Phase 3: leveraging and executing
70%
30%
Axel Springer Digital Classifieds GmbH
11.3%
21
Dec. 11, 2012
3 quarters – 3 countries – 3 market leaders
22
April 2012
October 2012
November 2012
Largest online
recruitment portal
Largest regional content
and classifieds portal
Largest real-estate portal
Dec. 11, 2012
Classifieds: top-line / bottom-line
EBITDA in €m
Revenues in €m
14%
35%
43%
9M EBITDA margins
235
9M/12
102
9M/12
2010
2011
9M/
2012
2010
2011
9M/
2012
Consolidated figures for Axel Springer Digital Classifieds
23
Dec. 11, 2012
Digitization: Looking ahead
2004
9M/2012
2%
Print
Digital
Print
35%
Digital
Pro forma for acquisitions (consolidated view: 34%)
24
Dec. 11, 2012
Our Vision
Print
50%
Digital
7
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Maintaining a solid growth
in a tougher market
Roland Tripard, CEO SeLoger
Axel Springer AG - Capital Markets Day
A tougher real estate market
French housing market (resale) down ca. 20% in 2012 to a low
700k transactions
No recovery expected for 2013
Resale transactions in France (‘000)
Source: INSEE
1
Maintaining solid growth via…
… recruiting more customers
Penetration rate has exceeded the 80% threshold in Q2/2012
100%
90%
80%
Penetration rate (%)
70%
60%
50%
40%
30%
20%
10%
0%
Source: Company
2
Via a further uplift in ARPU
ARPU growth strategy, historically based on selling add-ons and
vertical portals has been reinforced with
New prices since April 2012, so far applied to 30% of customer
base
Total agents
21%
14000
30%
Evolution of ARPU since Apr’12
12000
10000
New recruited agents: +14%
Existing agents with new prices:+15%
Existing agents with old prices:+1%
8000
6000
4000
2000
0
April 2012
Sep.
2012
sept-12
Nov.
2012
nov-12
Agents with new tariff
3
Driven by more efficiency of the traffic
Leads to customers grow faster than the audience
Evolution of total unique visitors and leads to customers (excl. mobile)
(Base 100 = April 2010)
170
160
150
150
140
130
126
120
110
100
90
80
Apr Jun Aug Okt Dez Feb Apr Jun Aug Okt Dez Feb Apr Jun Aug
10 10 10 10 10 11 11 11 11 11 11 12 12 12 12
Total UV
Leads sent to customers
While total traffic is boosted by development of mobile audience
Ca. 40% yearly growth with 1.5x more leads per visit
Source: Google Analytics & Company
4
And the content of a specialist brand for
every housing need
B2B – real estate professionals
B2C – Every french household with a real estate project/interest
5
Growth remains solid under
tough market conditions
Double digit growth in revenue in 2012
With a further increase in EBITDA margin
And a fast growing family to share knowledge with
6
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CAPITAL MARKETS DAY
Berlin | 11.12.2012
Stefanie Lüdecke, Chief Sales Officer (CSO)
Joachim Piroth, Chief Financial Officer (CFO)
OUR BUSINESS: PERFORMANCE = SALES
Customer journey
Awareness
Interest
Desire
Action
Reach
Visits
Sales
CPM
(cost per mille)
CPC
(cost per click)
CPA
(cost per action)
Display
marketing
Search
marketing
Performance
marketing
Berlin | 11.12.2012 | zanox | Capital Markets Day
2
OUR NETWORK: CONNECTING
ADVERTISERS AND PUBLISHERS
3
OUTGROWING OUR CLOSEST COMPETITOR
EBITDA (in €m)1)
Revenues (in €m)
+20%
+5%
312
+32%
18
327
260
-14%
16
-8%
227
-9%
210
14
+35%
-87%
11
191
8
1
9M/2010 9M/2011 9M/2012
9M/2010 9M/2011 9M/2012
9M/2010 9M/2011 9M/2012
9M/2010 9M/2011 9M/2012
zanox group
Tradedoubler
zanox group
Tradedoubler
1)
Tradedoubler EBITDA 2010 not including amortization of loans of €26.6M
Sources: Axel Springer Segment Reporting; Tradedoubler Interim Reports Jan-Sep 2011 & 2012; Tradedoubler exchange rate SEK/EUR 0.11
4
OPPORTUNITIES & CHALLENGES
Opportunities
Challenges
• Online advertising markets in Europe
still growing – driven by budgets shifting
from offline to online and rapidly growing
online retail sales
• Difficult macro-economic environment
– with reduced consumer spending in
some key industries and markets (esp.
Southern Europe)
• Online advertising continues to move
more and more towards performancebased models – as advertisers increase
their focus on ROI
• Pricing pressure growing – as
especially large advertisers demand
volume discounts and insource
• Synergies from zanox network gaining in
importance – for serving large
international advertisers and from a cost
perspective
• Performance-based alternatives to
affiliate marketing gaining ground – e.g.
re-targeting, real time bidding
Source: zanox analysis
5
WE HAVE A SOUND STRATEGY IN PLACE
1
Network
growth
2
Product
innovation
3
International
expansion
• Further acquiring and growing advertisers and
publishers – locally and globally
• Leveraging 3rd party cooperations
• Core affiliate platform evolution
• Mobile innovation
• New performance-based models
• Profitably growing our new countries (Brazil,
Eastern Europe, Turkey)
• Evaluating further expansion moves (organic
and M&A)
Source: zanox analysis
6
8
Summary and outlook
You can access the webcast of Mathias Döpfner’s speech on our website
www.axelspringer.com/cmd2012
2
Dec. 11, 2012
Summary and outlook
Thank you for attending the Capital Markets Day 2012!
Christoph Keese
Senior Vice President Investor Relations & Public Affairs
Phone: +49 30 2591 77800
Mobile: +49 171 7614545
[email protected]
Claudia Thomé
Head of Investor Relations
Daniel Fard-Yazdani
Co-Head of Investor Relations
Phone: +49 30 2591 77421
Mobile: +49 160 90445035
Phone: +49 30 2591 77425
Mobile: +49 151 52844459
[email protected]
[email protected]
Axel Springer AG: Axel-Springer-Str. 65, 10888 Berlin, Germany, Fax: +49 30 2591 77422