Company presentation

Transcription

1 Company presentation Morgan Stanley Consumer Magazine Day London, October 1, 2007 AXEL SPRINGER AG Andreas Wiele President Magazines and International, Member of the Management Board

2 Axel Springer is the only German multimedia stock Market leadership in print (170 newspapers and magazines) More than 50 online assets Considerable shareholdings in TV offerings (regional, national, international, IPTV) Vision: Axel Springer becomes a leading European print, online and TV company 2

3 EBITA and net income on historic record level EBITA ( m) Net income ( m)

4 + Successful restructuring and continued cost discipline Turnaround program Continued cost discipline -31% +400 employees in new businesses Operational efficiency Headcount Disposal of book business Retreat from Austrian market Rotogravure printing joint venture Reshaping logistics division Cutting of administration and editorial costs (w. Roland Berger) Ongoing portfolio review (business performance and strategic fit) Cost efficient launches of new titles 4

5 Clear strategy with traceable success Strategy Market leadership in German-language core business Creativity Internationalization Profitable growth Entrepreneurship Digitisation Integrity Corporate values 5

6 Best in class German print publisher Most profitable (EBITA margin: 15.7%) Market leader in adspend (16% market share) 1 Market leader in circulation (21% market share) 2 Total publications reach 55% of German population 3 BILD family alone reaches 26 million readers 3 1) Source: AC Nielsen; gross adspend, excluding classified ads, supplements and media advertising, ) Source: Company estimates based on IVW 2006, paid circulation; weighted market share taking into account different title frequencies 3) Source: IVW as of April

7 Successful international expansion Own operations in 7 countries 1 Hungary: 2nd largest publisher (29% market share) 2 Poland: largest newspaper publisher (29.6% market share) 2 Switzerland: Market leader in business, consumer and TV magazines 2 1) JV in Romania 2) Basis: 1st half year 2007; Sources: MATESZ, ZKDP, Expert Monitor (I-VI 2007) 7

8 Successful digitisation ahead of the market H1 2007: ~ 8% of revenues ( 102m pro forma) from online Total reach 1bn PIs, 100m visits Access to moving pictures Target 2010: 400m revenues ( > 20% EBITDA margin) Core competencies 1. Content / brands 2. Ad sales / marketing 3. Classifieds / marketplaces 8

9 Divisional Strategy Magazines and International Market leadership in German-language core business Group strategy Internationalization Profitable growth Divisional strategy for Magazines & International Digitisation Focus on profitable core segments and markets Market leadership / no. 2 in each market Digitisation of core competencies 9

10 Segment margin improvement since 2004 and growth of share of international revenues since 2002 EBITA margin (Segment) Share of international Revenue (Group) 4,2% 9,5% Launch of TV DIGITAL, Frau von Heute, JOLIE, AUDIO VIDEO FOTO BILD 6,3% 8,7% 10,5% 11,0% 13,7% 14,2% 15,6% 16,0% 16,1% 15,8% +41,6% 19,4% 1,3% Q1-Q Q1-Q Q1-Q Q1-Q

11 Divisional strategy for Magazines & International Focus on profitable core segments and markets Market leadership / no 2 in each market Digitisation of core competencies 11

12 Axel Springer is leading in Germany s print market Market share by adspend 1) Market share by circulation 2) 16% 10% 8% 5% 5% 4% 21% With 21% market share, Axel Springer reaches 55% of the German population 3) daily 7% 6% 5% 4% 3% 3% Axel Springer G+J Burda Holtzbrinck Bauer WAZ Axel Bauer WAZ Burda Stuttg. Holtzbrinck Springer Presse G+J Newspapers Magazines Newspapers Magazines 1) Source: AC Nielsen; gross adspend, excluding classified ads, supplements and media advertising, ) Source: Company estimates based on IVW 2006, paid circulation; weighted market share taking into account different title frequencies 3) Source: ma 2007 Pressemedien II; combined reach among German 14+ year-olds of all covered Axel Springer AG newspapers, magazines and 100% owned subsidiaries 12

13 Unique brand extension and internationalisation BILD a superbrand with huge potential International expansion 1952 Europe s biggest newspaper 1956 Germany s biggest Sunday newspaper 1983 Europe s biggest women s magazine 1994:Poland (copy of concept) 1986 World's biggest car magazine 1986:Italy 1988:France, UK 1990:Netherlands 1992:Turkey 1993:Greece 1995:Croatia 1995:Poland 1997:Switzerland 1998:Austria 2000:Portugal 2002:Bulgaria 2002:Czech Rep. 2003:Macedonia, Indonesia, Ukraine 2004:Estonia, Finland, Hungary, Latvia, Slovakia, Thailand 2005: Azerbaijan, Lithuania, Spain 2006:Denmark, Serbia/ Montenegro 2007:Slovenia 1988 Europe s biggest sports magazine 1996 Europe s biggest computer magazine 1998:Spain 1998:Poland 2003:CzechRep. 2004:Italy; Lithuania 2005:Romania 2006:Bulgaria, Russia 1999 Europe s biggest IT games magazine 1999: Poland 2001: Spain 2001/02 Motorsport, Test & Tuning, Alles Allrad 2006:Lithuania 2007:Spain, Ukraine (all 4x4) 2003 AUDIO VIDEO FOTO BILD 2005: Spain 2006: Italy 13

14 Leading market position in 7 core segments in Germany, strengthend by successful launches 2004: Launch of TV DIGITAL 2007: Launch of TV Guide 2003: Launch of Frau von Heute 2003: Launch of JOLIE TV listings No. 2 1) 2003: Launch of Audio Video Foto Bild Women Computer 2005: Acquisition of DM Euro No ) Finance No. 2 1) German Market Youth/ Music/ Lifestyle No ) Sports No. 1 1) Cars No. 1 1) 2001: Acqu. of AZ Autoverlag 2007: Launch of AB Klassik No ) 2001: Launch of YAM & MAXIM 2002: Launch of Starflash, Rolling Stone 1) Market Shares in sub-segments such as monthly, weekly, fortnightly 14

15 Leading market position in 7 countries* 2006: Acquisition of SÁRGA RTV 2007: Publisher of Manager Magazin, Harvard Business Manager 2006: Launch of COMPUTER BILD 2006: Launch of OK! Russia Business Monthlies No. 1 70% Weeklies/News No. 1 47% TV Listings No.1 54% Home & Interior No.1 39% Econ. Newsp. No.1 70% Crossword No.1 45% Hungary Poland Dailies No.1 40% Business Mag. No.1 55% Car No.2 51% Computer No.1 51% Youth No.1 65% Games No.2 30% 2003: Launch of FAKT 2006: Launch of DZIENNIK Switzerland Bilanz No.1 30% Internationalization Czech Republic Car No. 1 58% Youth No. 2 33% 2003: Launch of Svet Pocicatu (COBI) 2007: Acquisition of Jean Frey AG and 3 Ringier TV magazines France Spain Computer No.1 72% Games No.1 85% Car (in JV) No. 1 58% Cooking mag. No. 1 44% 2005: Launch of AUTO BILD 2005: Launch of AUDIO VIDEO FOTO HOY Sources: ABC (Czech Republic), ZKDP (Poland), OJD (Spain), MA Leader (Switzerland), OJD (France), Own estimates. Sold Circulation 2006 * excluding Romania with 40% JV 15

16 Licensing business: Additional revenues from existing content with publishers in 31 countries Licenses sold Total Total of new license titles launched after

17 Divisional strategy for Magazines & International Focus on profitable core segments and markets Market leadership / no 2 in each market Digitisation of core competencies 17

18 TV guides have the second largest relevance of all magazine-genres in Germany Top 5-Genres by paid circulation Womens (62 Titles) TV guides (24 Titles) Current Magazines (17 Titles) Home and garden (23 Titles) Computer (31 Titels) Source: IVW II/2007 (Genres as per pz-online) Basis: German Newsstand (at least 1% EV ) with national spread 18

19 TV DIGITAL Roadmap and Circulation Market development (IVW audited, sold copies) 1) TV DIGITAL Premiere Austria TV DIGITAL KDG TV DIGITAL Tividi/Unitymedia T-Home Cablecom New Edition ? Source: IVW, average per period 1) H1/

20 Example Switzerland: Building a leading position in Swiss magazine market by follow-on acquisitions 1999 Acquisition of Verlagsgruppe Handelszeitung Focus on business and financial publications 1/2007 Acquisition of 99.5% of Jean Frey AG adding BEOBACHTER, TV STAR and BILANZ Leading general interest magazine, TV guide and business magazine 3/2007 Acquisition of students.ch Leading online site for next generation of business executives 6/2007 Acquisition of Ringier TV listings and subscriber list of business magazine Cash No. 1 in TV guides Reaching 46% 1) of leaders in German-speaking Switzerland in 2 core segments: Business / finance and TV guides / general interest 1) Source: MA Leader

21 Example Poland: Organic growth to top position in media market within 10 years 1994/ 2000 Launch of strong Axel Springer brands (COMPUTER BILD, AUTO BILD) N 1 computer and car magazines in Poland 2001/ /2006 9/2007 Launch of strong international brands (FORBES, NEWSWEEK) Launch of the newspaper FAKT Launch of the quality newspaper DZIENNIK AS exchanges with Marquard sport newspaper Przeglad Sportowy against 4 women magazines of AS N 1 business magazine in Poland N 1 of daily newspapers in Poland N 2 of quality newspapers in Poland N 1 of sport newspapers in Poland Reaching 46% of circulation of national dailies 21

22 Successful expansion into Poland Polish newspaper market in H1/2002 1) Polish newspaper market in H1/2007 2) Axel Springer launches FAKT Gazeta Wyborcza DZIENNIK Super Express Rzeczpospolita Przegląd Sportowy Nowy Dzien (Copies sold in '000s) Gazeta Wyborcza Super Express Rzeczpospolita Dz.Sportowy G.Prawna (Copies sold in '000s) 1) Source: ZKDP, H1/2002, total sold circulation 2) Source: ZKDP, H1/2007, total sold copies

23 Divisional strategy for Magazines & International Focus on profitable core segments and markets Market leadership / no 2 in each market Digitisation of core competencies 23

24 Digitisation leveraging our core competencies Core competencies 1. Content / brands 2. Ad sales / marketing 3. Classifieds / marketplaces 6jfm

25 Core competency 1: Content / brands Infotainment Quality Regional Cars Women TV Business Consumer Electronics 6jfm

26 Core competency 2: Ad sales / marketing Reachbased AS: Centralized Online Marketing (CPM) First Media Double Impact Performancebased (CPC, CPL, CPA) 6jfm

27 Core competency 3: Classifieds / marketplaces Performancebasiert Jobs (CPC, CPL, CPA) Performancebasiert Real Estate (CPC, CPL, CPA) Immobilien: Performancebasiert Cars (CPC, CPL, CPA) Performancebasiert (CPC, CPL, Marketplaces CPA) 6jfm

28 Systematic internationalization of digital approach Strong concept, content and brand CENTRALIZED DIGITISATION Hub system auto.cz in CZ HU ES RU CZ ES GER HU ES IT PL Low risk High scalability stocks.ch in CH HU LOCAL DIGITISATION Spot system Online-newsportal with a strong Polish print brand No. 1 of Swiss online portals for students Leading consumer help site Business and finance portal Online newsportal in PL Strong local content High local synergies 28

29 Increase of reach Development unique visitors (m)* in Germany % 3.4 Growth of market: +11% Jan 06 Aug 07 * AS network 29

30 Financial Highlights Revenues Margins Results Solid performance in core business Double digit growth potential from acquisitions Continuously improved by turnaround program and cost discipline Record EBITA in 2006 Record net income in 2006 Investments 1.5bn investment in acquisitions by end of 2007 Capital structure Payout to shareholders Solid capital structure Sufficient headroom 448m paid out to shareholders since 2002 by dividends and net share buy-back 30

31 Group Outlook Revenue targets Margin targets Newspapers and magazines Online PIN Group Stable circulation revenues Advertising revenues growth 2007: > net market growth of 1-2% Revenue target pro forma 2007: ~ 200m Revenue target 2010: ~ 400m Revenue target 2010: ~ 1bn Revenue target 2015: ~ 1.5-2bn Newspaper EBITA margin: > 20% Magazines EBITA margin: > 10% Target EBITDA margin 2010: > 20% Target EBITDA margin 2015: ~ 15% 31

32 Investment highlights Only German multimedia stock Leading market position and brands Clear focus on digitisation Proven track record of cost discipline after rigorous restructuring Highly incentivized management team Clear focus on profitability and shareholder returns Performance, disclosure and capital structure as value drivers 32

33 Investor Relations Contact Claudia Thomé Head of Investor Relations Phone: +49 (0) Mobile: +49 (0) Appendix Daniel Fard-Yazdani Investor Relations Manager Phone: +49 (0) Mobile: +49 (0) Axel Springer AG Axel-Springer-Str Berlin / Germany Fax: +49 (0) jfm