Post on 22-Aug-2021
Investor PresentationSeptember 2010
Disclaimer
This document, which has been issued by Axel Springer Aktiengesellschaft (the "Company"), comprises the written materials/slides for a presentation of the managementwritten materials/slides for a presentation of the management.
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
l t f th i f ti i i t i d i thi d t d li bilit i t daccuracy or completeness of the information or opinions contained in this document and no liability is accepted for any such information or opinions.
This document contains forward looking statements which involves risks and uncertainties. These forward looking statements speak only as of the date of this document and are based on numerous assumptions which may or may not prove to be correct. The actual performance and results of the business of the Company could differ materially from the performance and results discussed in this document.
The Company undertakes no obligation to publicly update or revise any forward looking statements or other information contained herein whether as a result of new information, future events or otherwise.information contained herein whether as a result of new information, future events or otherwise.
This document does 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 theretothereto.
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Axel Springer has started transforming its business over the past 6 years to create a leading European integrated multimedia company
Axel Springer in H1/10 Our VisionAxel Springer in 2004
Digital24%
Europe’s leading integrated
multimedia company
1)
Digital2%
50%digital
50% printPrint
98%
Print76% Strong brands
1) Pro forma for acquisitions
Digital activities represent 24%1) of revenues and 15% of EBITDA in H1/10
3
Shareholder structure and trading volume
Sh h ld t t ( f S 2010) T di l 2)Shareholder structure (as of Sep 2010) Trading volume2)
30
Free Float24.2%1)
20
Dai
ly V
olum
e 00
s)CEO Mathias Döpfner (1.5%) 51 5%
10Average: 11.4
Ave
rage
D (0051.5%
8.9%
8.3%
Jan-
09Fe
b-09
Mar
-09
Apr
-09
May
-09
Jun-
09Ju
l-09
Aug
-09
Sep
-09
Oct
-09
Nov
-09
Dec
-09
Jan-
10Fe
b-10
Mar
-10
Apr
-10
May
-10
Jun-
10Ju
l-10
Aug
-10
7.0%
Axel Springer Gesellschaft fur PublizistikDr h.c. Friede Springer
1) Management board overall owns 2.0% of the share capital2) Monthly average daily volume on XETRA
Source: Datastream
Axel Springer AGDeutsche Bank AGFree Float
4
Our strategy focuses on our core competencies
Leadership in Germany1
Strengthen and expand leading market position
Strong brands drive high media reach and advertising revenues
Core Competencies
Content portalsContent portals
Classifieds/Marketplaces
Performance marketing
International expansion2 Digital transformation3
Performance marketing
Replicating the “German model” internationally
JV with Ringier in CEE
Existing brands extended online
Business model enhanced in digital world
5
Germany represents a unique newspaper market1 y p q p p
National newspaper circulation revenues(07-09 CAGR)Key themes in German market
Strong circulation revenues in Germany
Higher proportion of total revenues than in other countries
0.3%
2.9%
other countries
More resilient than in the UK and the US
Potential for regular cover price increasesBILD reach vs TV shows5)
4) 4)4)-3.6% -3.1%
Axel Springer Germany UK US3)
Higher share of younger readers
No free sheets
Strong position of BILD with 81%1) market 11.8
9 4 8 9
12.528.7
The X Factor
American Idol -Tuesday
Wetten, dass…?
Dr. House
(reach in m)
g pshare
Newspapers with higher share of advertising spend than TV as opposed to US2)
The SunBILD
9.4
Le Figaro
8.9 7.8
USA Today
3.72.4
g y
5) UK: Year average for The X Factor 2009, BARB (BroadcastersAudience Research Board); average reach of Sun between Oct.08 to Sept. 09 NRS (National Readership Survey), USA: USA TODAY Reader Brand Research 2009; MRI Fall 2009, Nielsen Television - TV Ratings for Primetime: Season-to-Date (2009-2010 Season Through Jan. 24, 2010), France: Daily newspapers: EPIQ-Studie 2008/2009, TV: Viewers 4J.+ Mediametrie 2009; Germany: Average for “Wetten, dass…?” 2009, Viewers age 14+, GFK/TV Panel 2009, ma 2010 Pressemedien II
1) Including Berlin newsstand newspaper B.Z.; market share based on paid circulation of newsstand newspapers2) Source: ZenithOptimedia July 20103) Source: company information; National Newspaper circulation sales as % of total National Newspaper sales4) Source: PwC Global Entertainment and Media Outlook, 2009-2013, 2009E forecast
66
Axel Springer is Germany’s leading print marketer and1 p g y g ppublisher
Market share by adspend3)Market share by circulation1) y p
17%
y
19% With 19% market share, A l S i h 17%Axel Springer reaches
52% of the German population2)
9%7%
5% 4% 4%7% 7%
5%4% 3% 3%
AxelSpringer
G+J Burda WAZ Bauer DuMontAxelSpringer
Bauer WAZ SWMH Burda Holtz-brinck
G+J
Newspapers MagazinesNewspapers Magazines
1) Source: Company estimates based on IVW H1/10, paid circulation; weighted market share taking into account different title frequencies2) Source: ma 2010 Pressemedien II; combined reach among German-speaking 14+ year olds of all covered Axel Springer AG newspapers, magazines and 100% owned subsidiaries3) Source: Nielsen Media Research; gross adspend, excl. classified ads, supplements and media advertising, 2010 Jan.-June, 100% owned subsidiaries and Jahr Top Special Verlag
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Lead over German print marketers even further expanded
Gross advertising revenues (in %)
37.9 38.7
H1/08
H1/09
Gross advertising revenues (in %)+4.3%-pts
34.4
21.8
19 4 20.0
H1/10
-1.9%-pts
-1.8%-pts
17.6
9 8
16.4
19.4
10 19 8
15.7
+0.2%-pts
p
+0.4%-pts
1 2% t9.6 9.3 7.3
9.8 10.1
6.4
9.8 9.7
6.1
-1.2%-pts
Axel Springer* Bauer Burda Gruner+Jahr DuMont IQ Media
Basis: Leading German print marketers. Source: Nielsen Media Research, Newspapers and magazines without classifieds and media ads.*without Financial Media.
8
Axel Springer: a strong platform for international2 p g g pexpansion
DigitalIndividual countriesCEE JV Individual countriesCEE JV
Serbia
FranceSpain
Russia
Hungary CzechRepublic
Poland
Slovakia
Switzerland
RomaniaRussia
Combining reach of No. 1 tabloid positions in all JV countries
Goal: Growth and digitization
Country-by-country approach
Strong market positions in each country
Roll-out of successful business models to other countries, partly without physical presenceGoal: Growth and digitization countryMaking use of network effects
and economies of scale
9
CEE JV with Ringier: 5 market-leading mass market 2
S ccessf l Eastern
g gbrands, strong digitization potential
Successful Eastern European business since the 1990s
> 100 print titles, > 70 Poland No. 1 tabloid: Blesk
(Ringier)
No. 1 tabloid: FAKT (Axel Springer)Reach: 4.7m
p ,online offerings
PF 2009 JV financials: revenues €414m, EBITDA €62m
Poland
Czech Republic
(Ringier)Reach: 1.5m
EBITDA €62m
50% economic ownership with 100% consolidation for Axel Springer
RepublicSlovakia
Hungary
No. 1 tabloid: Nový Čas (Ringier)Reach: 1.2m No. 1 tabloid:
Blikk (Ringier)R h 1 1
p g
Closing for all JV countries except Hungary on July 1, 2010
g y No. 1 tabloid: Blic
(Ringier)Reach: 0.8m
Reach: 1.1m
Goal: Growth and digitizationRingier Presence
Axel Springer Presence Serbia
10
We have become the largest digital player by revenue 3
Digital media revenues (in €m)
g g p y yamong European print publishers
Digital media revenues (in €m)
423
569
)
332
423
reve
nues
(€m
)
20293640
117127FY09
r
JohnstonPress
L'EspressoTelegraafTrinityMirror
DMGTLagardereSanomaSchibstedAxelSpringer
2% 5% 5% 3% 4%tota
l nu
es 12%29%21% 6%FY09
1)
28%2) 13% 8%% o
f re
ve 24%1) Based on pro forma revenues for Digital Media2) Online revenues include revenues from online classifieds, the online portion of Media Houses Scandinavia revenues and the online portion of Aftonbladet revenues. Exclude any online revenues from Media Houses International division3) Based on H1/10 financials ending April 4, 2010 4) Based on interim results, 26 weeks to July 4, 2010
H1/10 N/A 6%3) 4% 5%5%4)
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Digital strategy along core competencies
Core Competencies
Content portals
Core Competencies
A
Classifieds / MarketplacesAudience AdvertisersB
Performance marketing
p
C Performance marketingC
Cross-synergies between core competencies increase revenues and profitability
12
BILD – example of our successful transition to digital A p gchannels
News1)
100m
150m
sits
(in
m)
50m
100m
Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10
Site
vi
89.4
2 6
5.343.9
Sport Automotive Computer2) 2) 2)
ts (i
n m
)
ts (i
n m
)
ts (i
n m
)
27.327.8
Onl
ine
rt1.d
e
0.3
2.6
Mot
orS
port
New
s
9.718.3
hip.
de
wel
t.de
Site
vis
i
Site
vis
i
Site
vis
i t
3)
Kick
er O
Spor
Auto
un
d S
Auto
Ch
Pcw
1) Source: IVW, Jul 20102) Source: IVW, Jan – Jul 2010 (monthly average)3) Axel Springer’s sport sites include: sportbild.de, Bild.de/Sport and Transfermarkt; Source: IVW (sportbild.de and Transfermarkt), Webtrekk (Bild.de/Sport)
/sport
13
auFeminin – strong growth driven by international A g g yexpansion
soFeminine 0.6UK: #1
Leading market positions* International revenue contribution (in €m)
18.9+40.8%
4.6goFeminin3.7Fem
Germany: #1iVillage 0.50.6auFeminin
0.3Libelle
Belgium: #1
12.313.5+9.8%
+47.8%+107.5%2.6 5.3
7.8
7.4auFeminin6.0LeJournal de
Femmes
France: #1+36.2%
-16.0%Unique Visitors in millionSource:FR: Nielsen NetRatings May 2010IT ES Ni l N tR ti M 2010
11.18.19.7
2.8enFemenino
1.0Terra Mujer
Spain: #1
3.1alFemminile1 5Donna Moderna
Italy: #1
IT, ES : Nielsen NetRatings May 2010UK: comScore May 2010 DE: IVW May 2010 – AGOF 2010BE: CIM May 2010 - Belgium H1/08 H1/09 H1/10
France Internationalj 1.5Donna Moderna
* Additional presence in Canada, Morocco, Poland, Switzerland, Vietnam
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Paradigm shift – Monetization of digital content works A g g
Regional portals Mobile portals iPhone Apps iPad Apps
Selected content available via paid
#1 mobile portal Free for BILD mobile
Approximately 240.000 WELT and
WELT-App and premium “Iconist” App launchedp
subscriptions Free for print
subscribers
customers BILD apps sold to date
pp WELT-App best-selling
publisher-App in Germany
BILD App announced forBILD App announced for H2/10
15
Utilizing marketing power to drive brand awareness for B g g pStepStone
No. 1 jobsite in Germany1)
Online jobsites in 11 countries
Key facts Leading position in online job classifieds
Online jobsites in 11 countries
Acquisition steps:
100% in several steps for approx. €130m€130m
Portfolio optimization: sale of software business for €110m
Net purchase price of approx. €20m
Expansion potential
Cooperation with national newspapers
Further international potential (eg Ringier JV)
Strong growth expected in the job market1) Based on reach; Source: Comscore
16
Online Performance Marketing –C gAxel Springer shapes European market leader
Revenues (in €m)Revenues (in €m)
+15% -13%
Acquired
08/2009
178
140154
16102/2010
17H1/09 H1/10 H1/09 H1/10
17
We have a strong track record of acquiring digital assets
150
and fostering their growth
600150
200Investments (€m):(07A-09A)
2007 PF250
2007 PF EV/EBITDA
multiple: 12x
K t
Content portals
Classifieds/marketplaces
Performance marketing Total
RevenuesCAGR: (07-09A) 31% 5% 16% 15%
Key assetsacquired
CAGR: (07-09A)
EBITDACAGR: (07-09A) 15% 3% 22% 13%
18
Financial performanceFinancial performance
We have had a strong financial performance over the last
Revenues
few years
2,864 2,777 2,321 2,452 2,437 2,402
2,634 2,729 2,612
2,000
3,000
nues
(€m
) +8.7%1,255 1,364
0
1,000
2001 2002 2003 2004 2005 2006 2007 2008 2009
Rev
en
Di it l P i tH1/09 H1/102) 2)
433 414 434 470 486
20%
25%
400
500
n
Digital revenues Print revenues
+61.0%
EBITDA
1)
261
%
25%300E n
191 226
279334
6 7% 8.2%11.4%
17.7% 17.3% 18.3% 18.2% 17.8%
12.8%
5%
10%
15%
20%
100
200
300
400
EB
ITD
A m
argi
n
EB
ITD
A (€
m) 1)
EB
ITD
A (€
m)
162
12.9%
19.1%
5%
10%
15%
20%
100
200
EBITDAmarginE
BIT
DA
(€m
)
EBIT
DA
mar
gin
6.7%0%0
2001 2002 2003 2004 2005 2006 2007 2008 2009EBITDA EBITDA margin
0%0H1/09 H1/10
E
1) Including restructuring items of €75m 2) According to HGB
2) 2)
20
Print margins close to record high, Print International and Digital Media continue to expand margins
(in €m)
R
Newspapers National
H1/09590 6584 4
yoy1 1%
H1/10
Magazines National
263 3243 0H1/09 yoyH1/10
%
Print International
151 6154 3H1/09 yoyH1/10
1 8%
Digital Media
200 8333 9H1/09 yoyH1/10
66 3%Revenues
Circulation
Advertising
590.6
307.2
269.4
584.4
300.1
270.5
-1.1%
-2.3%
+0.4%
263.3
180.8
72.9
243.0
163.2
69.3
-7.7%
-9.7%
-4.9%
151.6
92.5
53.9
154.3
93.1
52.8
+1.8%
+0.7%
-2.0%
200.8
-
145.4
333.9
-
250.1
+66.3%
-
+72.1%
EBITDA
g
Other
129.5
14.1
155.5
13.9
+20.1%
-1.3%
31.8
9.6
57.8
10.5
+81.8%
+9.1%
2.1
5.2
15.9
8.3
>100%
+59.3%
16.9
55.5
40.2
83.8
>100%
+51.1%
EBITDA
EBITDAmargin
21.9%26.6% 12.1%23.8% 1.4%10.3% 8.4%12.0%
21
Strong cash flow generation and high dividend yield
Free cash flow (ltm1), in €m) Dividend yield2)
292
4005.9%
5.1%
Axel Springer
Sanoma
206209
250 260
292
239
199220
243 246233 231
300 4.6%
3.5%
2.7%
Lagardere
DMGT
Telegraaf Media
177 175
100
2001.2%
0.0%
0.0%
Schibsted
Gruppo L'Espresso
Johnston Press
0
100
7 7 7 7 8 8 8 8 9 9 9 9 0 0
0.0%
0.0%
0 0%
Mondadori
RCS Media Group
Trinity Mirror
Q1/
07
Q2/
07
Q3/
07
Q4/
07
Q1/
08
Q2/
08
Q3/
08
Q4/
08
Q1/
09
Q2/
09
Q3/
09
Q4/
09
Q1/
10
Q2/
10 0.0%Trinity Mirror
1) Last twelve months2) Based on actual 2009 dividend per share divided by share price as of December 31, 2009; Source: CapitalIQ
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Looking aheadLooking ahead
Axel Springer 2010 outlook1)
GroupGroup
Revenuecategories
Revenues
EBITDA
Significant increase yoy
Level of 2008 achievable
Circulation AdvertisingOther
< 2009> 2009> 2009
SegmentsNewspapers
NationalMagazines
NationalPrint Inter-national2) Digital Media Services/
Holding
EBITDA Level of 2008 achievable Other > 2009
National National national2) g Holding
< 2009
> 2009 > 2009 > 2009 > 2009 < 2009
< 2009> 2009 > 2009< 2009Revenues
EBITDA
Margin targetsMid-term
1) Based on the assumption that the positive market trend of H1/10 continues for the rest of the year2) Including joint venture with Ringier as of July 1, 2010
≥ 25% ≥ 20% ≥ 15%2) ≥ 20% -EBITDA
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Key investment highlights
No. 1 publisher in Germany reaching 52% of the population p y g p pLeading market positions and brands across Europe
Attractive portfolio of leading online properties that scale internationally
CEE JV creates the leading platform for growth in the regionAttractive portfolio of leading online properties that scale internationallyProven digitization strategy: already 24% of revenues digital
Strong profitability healthy balance sheet and high dividend
Geared for cyclical advertising recoveryStrong profitability, healthy balance sheet, and high dividend
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Investor Relations contacts
Claudia Thomé
Head of Investor Relations
Daniel Fard-Yazdani
Deputy Head of Investor Relations
Phone: +49 (0)30 2591 77421
Mobile: +49 (0)160 90445035
claudia thome@axelspringer de
Phone: +49 (0)30 2591 77425
Mobile: +49 (0)151 52844459
daniel fard yazdani@axelspringer declaudia.thome@axelspringer.de daniel.fard-yazdani@axelspringer.de
Axel Springer AG
Axel-Springer-Str. 65
10888 Berlin / Germany
Fax: +49 (0)30 2591 77422
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