Roadshow. London, March 28/29, 2018

Transcription

1 Roadshow London, March 28/29, 2018

2 Disclaimer This document, which has been issued by Axel Springer SE (the "Company"), comprises the written 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 accuracy 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. 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 securities in any jurisdiction, nor shall they or any part of them nor the fact of their distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. 2 Company presentation

3 Axel Springer at a Glance Highlights Leading digital classifieds operator Leading digital publisher in Europe with unique media brands Successful transformation with 80% 1 of adj. EBITDA from digital activities Organic growth supported by targeted M&A with strong track record Strong FCF, high dividend yield and payout ratio (2017: 77%) Revenues by segment 1 Adj. EBITDA by segment 1,2 2% 13% 28% 28% Classifieds Media News Media 30% 57% Marketing Media 42% Services / Holding Financials 2017 Outlook 2018 (reported) Outlook 2018 (organic 4 ) Revenues in m 3,562.7 Low to mid single-digit % growth Low to mid single-digit % growth EBITDA (adj.) in m Low double-digit % growth Mid to high single-digit % growth EBITDA margin (adj.) 18.1% EPS (adj.) in 2.60 Low to mid single-digit % growth Mid to high single-digit % growth DPS (FY 2017) in ) Based on FY/17 figures. 2) Negative EBITDA S/H allocated proportionally to operative segments. 3) Subject to approval by the AGM. 4) Adj. for effects from IFRS 16, consolidation and FX effects. 3 Company presentation

4 80% of adj. EBITDA from digital activities digital revenues with organic growth of 12.5% in 2017 Revenues Advertising Revenues adj. EBITDA 71% 87% 80% digital digital digital 4 Company presentation

5 Key messages 2017 strong execution 1 More disclosure on classifieds Strong organic revenue growth of 12.7%, driven especially by jobs Positive response to new single-asset disclosure and dedicated CMDs in London and New York in June 17 Increased disclosure and better visibility as basis for re-evaluation of assets (especially of jobs classifieds) Strict M&A discipline in content Guidance given: No loss-making content acquisitions before existing digital content businesses have proven profitability Strong progress at Business Insider with organic revenue growth of 46% in FY/17 Break-even for Business Insider envisaged for H2/ Stable adj. EBITDA in News Media Mid-term guidance given: adj. EBITDA to be stable in a range between 225m and 245m for * News Media adj. EBITDA 2017: 218.8m Advertising revenues in German market up 1.7% in FY/17 Reorganization of German publishing units Leading digital publisher Focus on classifieds and content Active portfolio management: - Acquisition of Logic-Immo in France - Disposal of aufeminin initiated - Merger of Awin and affilinet with IPO as exit option - Sale of print portfolio and acquisition of digital assets in Slovakia * Range includes changes from IFRS 16 and corresponds to previous range of 205m - 225m. 5 Company presentation

6 Berlin real estate transactions optimize capital structure Sale and lease-back of Axel-Springer-Passage Contribution of high-rise to pension fund Forward-sale and leaseback of new building Signed in 2017, Closing in Q4/17 Purchase price of 330m Tax payments of 80m Profit (post tax) of 130m Lease of majority of office space until 2020 Signed in 2017, Closing in January 2018 Contribution of Axel Springer headquarter high-rise to contractual trust agreement (CTA) Long-term lease-back starting 2018 Reduction of pension liabilities by ~ 140m Signed in 2017, closing expected in Q4/19 Expected total capex and sale related costs of ~ 320m, thereof ~ 230m from 2018 until completion Purchase price of 425m Tax payments of ~ 30m Long-term lease from 2020 onwards 6 Company presentation

7 Adj. EBITDA up 8.5% in 2017 driven by Classifieds Media in m 2017 yoy Q4/17 yoy Revenues 3, % 1, % Advertising 2, % % Circulation % % Other % % adj. EBITDA % % Margin 18.1% 0.0pp 17.1% -2.4pp Restructuring Exp Launch Costs adj. EBITDA ex. Restr./LC % % Margin 20.5% -0.1pp 21.0% -1.3pp Comments Revenues adjusted for cons. and FX effects +6.3% (ad revenues +10.8%, circulation revenues -4.7%, other revenues -0.8%) Adj. EBITDA up 8.5% (adj. for cons. and FX effects +4.5%) driven by Classifieds Strong operational performance in Q4/17 burdened by additional restructuring expenses and higher expenses for incentive programs due to strong share price increase 7 Company presentation

8 Adjusted eps up 8.1% yoy and in line with guidance in m Q4/17 Q4/16 Adj. EBITDA yoy change Depreciation/amortization (excl. PPA) Adj. EBIT Financial result Taxes Adj. net income thereof attributable to non-controlling interests Adj. eps yoy change 8.5% -2.3% 8.1% -11.6% Non-recurring effects Depreciation/amortization, and impairments of PPA Taxes attributable to these effects Net income Company presentation

9 Net financial debt of 1.0bn (leverage of 1.6x) strong increase in FCF Net financial debt of 1,020.2m 1 at year-end 2017 (leverage 1.6x 2 ) Free cash flow (FCF) in m FCF FCF excl. effects from headquarter real estate transactions 1) Excl. pension liabilities. 2) Based on adj. EBITDA impact from real estate transactions on cash flow Net positive cash inflow of 200m from Berlin real estate transactions (purchase price of 330m for sale of Axel Springer Passage and tax payments of 80m in Q4/17 as well as capex for the new building and sale related costs of 50m in FY/17) Positive effects on cash flow going forward Payment for acquisition of Logic-Immo (Q1/18) and proceeds from disposal of aufeminin (expected Q2/18), resulting in ~ 130m cash inflow Net positive cash inflow of ~ 165m until 2020 from sale of new Berlin building (purchase price of 425m and tax payments of ~ 30m expected in Q4/19 and capex and sale related costs of ~ 230m in ) Payments from sale of stake in Doğan TV of 171m expected in 2020/22 9 Company presentation

10 As already announced, new international accounting standards will be implemented 2018 IFRS 15 Overview New standard regarding the recognition of revenues Mandatory as of Jan Complete overhaul of revenue recognition principles Impact on financial statements Revenues of Performance Marketing to decrease by approximately 75% 1 No impact on adj. EBITDA Adj. EBITDA margin for Performance Marketing to increase from ~ 5% to ~ 20% As of Q1/18, reporting will show restated 2017 numbers and outlook will reflect lower revenues 1) Negative effect of ~ 500m in Company presentation

11 Significant impact from new accounting standard IFRS 16 starting 2018 IFRS 16 Overview New standard regarding the accounting of leases Mandatory as of Jan. 2019, early adoption possible as of Jan (Axel Springer early adopter) Recognition of leases with lease terms longer than 12 months as assets and liabilities Relevant leases within Axel Springer: real estate, IT hardware, company cars Impact on financial statements Adj. EBITDA: 45m to 50m effect when comparing 2018 to 2017 (excluding lease contracts starting January 2018) 1 Net income: Low single-digit million euro negative effect Net debt: Additional net debt of 200m to 220m Free cash flow increase of 40m to 45m 2 No restatement 2017 but outlook and reporting 2018 to contain organic numbers 1) Thereof ~45% in News Media, ~35% in Classifieds Media, ~20% in Marketing Media. 2) Due to consideration of lease payments in cashflow for financing activities. 11 Company presentation

12 Important factors and assumptions for 2018 outlook Adoption of IFRS 15 affects revenue recognition in performance marketing Adoption of IFRS 16 affects P&L and balance sheet Consolidation effects, especially: Closing of Logic-Immo acquisition as of February, 2018 Closing of aufeminin sale expected by end of April, 2018 Note: Meinestadt.de included in jobs classifieds as of January 2018 (before in General/Other) 12 Company presentation

13 Outlook Group Reported Organic (adjusted for effects from the adoption of IFRS 16 as well as consolidation and FX effects) Revenues Low to mid single-digit % growth 1) Low to mid single-digit % growth 1) Group adj. EBITDA Low double-digit % growth Mid to high single-digit % growth adj. eps Low to mid single-digit % growth Mid to high single-digit % growth 1) Revenue outlook based on 2017 revenues restated for negative effect of ~500m from IFRS 15 adoption. 13 Company presentation

14 Outlook Segments Classifieds Media News Media Marketing Media Services/ Holding Reported Organic (adjusted for effects from the adoption of IFRS 16 as well as consolidation and FX effects) Revenues Double-digit % growth High single-digit to low double-digit % growth adj. EBITDA Double-digit % growth High single-digit to low double-digit % growth Revenues Low to mid single-digit % decline Low single-digit % decline adj. EBITDA Mid single-digit % growth Low to mid single-digit % decline Revenues High single-digit % decline 1) High single-digit % growth 1) adj. EBITDA High single-digit % growth Low double-digit % growth Revenues Mid single-digit % decline Mid single-digit % decline adj. EBITDA Low to mid single-digit % growth 2) Low to mid single-digit % growth 2) 1) Revenue outlook based on 2017 revenues restated for negative effect of ~500m from IFRS 15 adoption. 2) Improvement/smaller negative EBITDA. 14 Company presentation

15 Classifieds Media

16 Classifieds Media: leading digital classifieds operator Overview Classifieds Media Leading digital classifieds operator Portfolio of market leading classifieds: 76% 1 of revenues from #1 market positions Jobs #1 in Germany, Belgium #1 in UK #1 in Ireland, South Africa Real Estate #1 in France #2 in Germany #1 in Belgium Cars #1/2 in France Generalist #1 in Israel Vacation Rental #1 in Netherlands & Belgium Digital classifieds clear beneficiary of structural shift from offline to online Strong market positions yielding high margins Financials 2017 Outlook 2018 (reported) Outlook 2018 (organic 2 ) Revenues in m 1,007.7 Double-digit % growth EBITDA (adj.) in m Double-digit % growth EBITDA margin (adj.) 41.0% 1) Based on FY/17 figures. 2) Adj. for effects from IFRS 16, consolidation and FX effects. High single-digit to low double-digit % growth High single-digit to low double-digit % growth 16 Classifieds Media

17 Classifieds Media with double-digit organic revenue growth of 12.7% in 2017 in m 2017 yoy Q4/17 yoy Revenues 1, % % organic growth* 12.7% 12.1% Advertising % % Other % % adj. EBITDA % % Margin 41.0% 0.7pp 40.2% 0.5pp Comments Revenue increase of 14.6% mainly due to continued strong organic growth (12.7% in FY/17) Adj. EBITDA up 16.5% (adj. for cons. and FX effects +14.7%) and slight margin improvement * Adjusted for consolidation and FX effects. 17 Classifieds Media

18 The underlying markets of our assets show attractive dynamics Total online and offline marketing spend, (in m) Jobs 1,091 71% 29% 2012 France Germany +2% 1,170 50% 50% 2016 Real Estate Germany % 64% UK +2% % 79% Belgium +1% % 35% 52% 65% % +3% % 48% 44% 33% 52% 69% 56% 67% Source: OC&C CAGR Offline Mkt Spend Online Mkt Spend 18 Classifieds Media

19 Goal to become a comprehensive E-Recruiting company Career guidance Orientation Career development Search jobs Browse jobs / be found Future Product portfolio Hire / Sign contract Research employer Interview Research salary Follow-up Applications Application Check cultural fit Job seeker journey 19

20 2017 (GER/UK) 2008 Companies are charged for listings and access to candidate profiles Job Listings Highly scalable with low total cost per hire for recruiter Direct Search Effective process to fill highly specific positions, but high cost per hire and difficult to scale for recruiter Employer Branding Targeted branding products to help employers stand out among our candidates Revenue share 88% 6% 6% 88% (98% / 61%) 10% (1% / 34%) 2% (1% / 5%) 20

21 Continued strong double digit organic growth Group Revenue (in m) StepStone outperforms other players and has survived numerous so called disruptive business models CAGR +29% total: +29% +18% +17% organic growth Unemployment Office Company websites Google base referral sites Craigslist Social networks Lehman Agents Google Jobs Social networks Social networks Indeed / Meta search engines Google / Facebook Indeed Indeed / Google 21

22 StepStone Continental continues to provide strong organic growth Financial development by subgroup¹ (in m) Revenue EBITDA +24% +27% +24% StepStone Continental +3% +26% +14% +27% +3% +16% +27% % 58% 59% 56% 50% 52% ) All subgroups adjusted to current company structure, minor revenue recorded centrally is not presented, non-licensed product development costs are not recorded in operational subgroups Organic growth EBITDA Margin 22

23 Organic growth in the UK picking up again Financial development by subgroup¹ (in m) Revenue EBITDA StepStone UK +11% +11% +41% +29% % +67% % -8% +7% +/-0% % 25% 24% % 38 20% 24 13% TJG acquired early 2012, Jobsite late 2014 Focus has been on product improvements (post acquisition) 1) All subgroups adjusted to current company structure, minor revenue recorded centrally is not presented, non-licensed product development costs are not recorded in operational subgroups. Investments in future growth impact margin Further potential from integrating central functions (i.e. sales) from Totaljobs and Jobsite Organic growth EBITDA Margin 23

24 StepStone holds #1 positions in candidate delivery in most core markets Candidate Delivery¹ - StepStone Continental Germany Belgium Austria StepStone DE 15.2 StepStone BE 14.9 derstandard 18.6 Stellenanzeigen 6.2 Indeed 9.4 Karriere.at 18.2 Monster Linkedin Jobware Meinestadt Jobat Regiojobs Linkedin kurier.at StepStone AT Monster Indeed 3.5 Monster 4.7 Indeed 1.7 Xing 2.9 Vacature 3.5 Linkedin 1.4 1) Average # of applications per job ad as of December Source: TNS, figures are corrected for outliers. 24

25 #1 positions in candidate delivery in UK and SAON Group Candidate Delivery¹ - StepStone UK Candidate Delivery¹ - SAON Group United Kingdom Ireland South Africa TotalJobs Indeed Potential: 37.8 Jobs.ie Irishjobs Pnet CJ Jobsite 14.7 Indeed 13.5 Careers Reed 11.6 NIJobs 9.8 Linkedin 29.3 CV Library 10.7 Linkedin 6.1 Monster Linkedin ) Average # of applications per job ad as of December Source: TNS. 25

26 Increasing customer numbers drive StepStone s businesses Customer number by subgroup (k) 1 StepStone Continental StepStone UK SAON Group Changed business focus of Jobsite after acquisition, removed low value contracts CAGR +10% CAGR -2% CAGR +12% ) Customer count based on active contracts in a year except StepStone Germany and TJG where end customer (listing owner) are counted. ictjob and Tecoloco included since

27 French real estate classifieds recovery drives expansion of marketing budgets Structural tailwind in French real estate market supports LTM cumulated existing home sales transactions in k, 02/ /2017, France 1 1, Feb12 Dec17 growth in all online channels beyond classifieds In m Offline Online % 27% 17% 2012 CAGR +1% % 14% 22% 35% 43% 2016 CAGR +3% % 9% 25% 47% 2020F CAGR (12-16) -1% -14% +7% +6% +8% 2 CAGR (16-20F) +1% -8% +6% +5% 1) Sales of individual houses and apartments sold by the unit, excluding any professional premises, whole multi-apartment buildings and ancillary premises (cellars, parking spaces, fractions of common condo property, etc.) sold separately. 2) Organic (adjusted for consolidation and FX effects) revenue growth yoy average, excl. Poliris. Source: OC&C, Conseil Général de l Environnement et du Développement. Other Offline Advertising Print Advertising Other Online Advertising Online Classifieds 27

28 Growth in core and verticals drive SeLoger s profitability Constant roll-out of new products has been valued by customers Historical Revenue and EBITDA performance Average monthly ARPA made with professional customers, in Revenues and EBITDA in m CAGR % +9% CAGR +10% Source: SeLoger 1) excl. effects of Poliris business, deconsolidated in SeLoger excl. verticals SeLoger incl. verticals Revenues EBITDA 28

29 SeLoger: highest number of professional listings in France Average of monthly listings FY/17 in k 1 1, % Source: autobiz private listings 29

30 SeLoger and Logic-Immo: Merger approved 140m in revenues high in m in revenues high in 2017 low low Google Trends analysis on keyword Seloger in Unique users in m 1 Google Trends analysis on keyword Logic Immo in After closing of the merger, joint product offering now in preparation to unlock further growth potential of two strong French real estate brands Source: Google Trends, Mediametrie, SeLoger, SPIR. 1) Unique users, global users in m, October ) SeLoger and Logic-Immo indexed to keyword request Seloger for Île-de-France. 30

31 Immowelt: number of DUO 1 agents surpassed number of IS24 core agents Highly successful DUO migration completed in 2017 at very low churn Number of agents in Germany 2 [k] Sep Dec Mar Jun Sep-16 Dec-16 Mar-17 Jun-17 Sep Dec-17 IS24 core agents IW non-duo agents IW DUO agents Note: Definitions of IW DUO agents and IS24 Core Agents are aligned 1) DUO: 1 contract, 2 portals (immowelt.de, immonet.de); Germany only. 2) Real estate professionals with a term contract (term usually 12 months) Sources: Immowelt, IS24. 31

32 Strong #2 position for residential listings Slightly declining listings in tight German residential market Number of residential monthly listings (k) 1 300k -1% -5% IS24 200k 100k IW 0k H2/16 H2/17 1) House/ flat/ lot to rent or buy in Germany only Note: Direct comparability of snapshot listing figures limited due to different listing models of IW and IS24 (while IW agents usually rotate listings, IS24 agents usually don t). Sources: Management estimates, internal data. 32

33 Immowelt s ARPU increased steadily over last quarters Immowelt with strong ARPU growth but below main competitor ARPU ( /month) 1 ARPU ( /month) % IS24 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q3/17 1) Average Revenue Per User: monthly revenues, divided by the number of agents (Immowelt Group DUO and non-duo agents in Germany with a term contract). Sources: Immowelt, IS24 33

34 Immowelt: Strong revenue growth with increasing EBITDA Substantial revenue growth Margin target of > 40% in 2019 Revenue (in m) 98.3m +13.2% 111.3m EBITDA (% of revenue) % % >40% 20% 20% Revenue EBITDA margin F 2019F 34

35 Outlook: Continuous growth in brand awareness, performance, revenues and EBITDA 2018 Financial outlook Marketing Continue with significant marketing efforts Operations Revenues Increased focus on products for lead generation Double-digit growth driven by ARPU increase and stable agent base Profitability EBITDA margin to increase to >40% in 2019 after brand investment phase 35

36 News Media

37 News Media segment at a Glance Overview Focus on market-leading media brands with clear path to digitization National News Media dominated by unique asset BILD Presence in English-speaking media market with Business Insider and emarketer National BILD group WELT group (formerly: WELTN24 group) News Media International Business Insider emarketer upday Ringier Axel Springer Media (Poland, Hungary, Serbia, Slovakia) 2 Innovative mobile news service for Samsung devices Guidance for stable EBITDA in News Media in a range between 225m - 245m for ) Including changes from the adoption of IFRS 16 and corresponds to previous range of 205m - 225m. Financials Revenues in m 1,509.8 (Main activities) Ringier Axel Springer Schweiz Outlook 2018 (reported) Outlook 2018 (organic 4 ) Low to mid single-digit % decline EBITDA (adj.) in m Mid single-digit % growth EBITDA margin (adj.) 14.5% Low single-digit % decline Low to mid single-digit % decline 2) Fully consolidated (50% stake) 3) Consolidated at equity 4) Adj. for effects from IFRS 16, consolidation and FX effects 37 News Media

38 News Media International with strong revenue and margin expansion News Media National News Media International in m 2017 yoy Q4/17 yoy 2017 yoy Q4/17 yoy Revenues 1, % % % % thereof digital (reported) % % % % thereof digital (organic growth*) 3.2% 7.3% 25.1% 37.9% digital share of revenues 24.1% 1.4pp 27.8% 2.8pp 60.9% 9.9pp 62.9% 7.6pp Advertising % % % % Circulation % % % % Other % % % % adj. EBITDA % % % % Margin 14.8% -0.8pp 11.5% -6.3pp 13.5% 2.8pp 16.7% -9.4pp Restructuring Exp Launch Costs adj. EBITDA ex. Restr./LC % % % % Margin 18.1% 0.6pp 18.4% -1.6pp 20.0% 0.4pp 24.0% -10.2pp * Adjusted for consolidation and FX effects. 38 News Media

39 News Media adj. EBITDA up 2.0% in line with range given with mid-term guidance in m 2017 yoy Q4/17 yoy Revenues 1, % % thereof digital (reported) % % thereof digital (organic growth*) 12.0% 19.7% digital share of revenues 33.9% 4.7pp 37.5% 5.4pp Advertising % % Circulation % % Other % % adj. EBITDA % % Margin 14.5% 0.0pp 12.9% -6.8pp Restructuring Exp Launch Costs adj. EBITDA ex. Restr./LC % % Margin 18.6% 0.6pp 19.9% -3.4pp * Adjusted for consolidation and FX effects. Comments Revenues up 1.9%, adj. for cons. (mostly emarketer) and FX effects on prior year (+0.1%) 33.9% of revenues from digital Advertising revenue increase of 7.9% mainly driven by organic increase (+6.7%) Circulation revenues down -2.1% (positive consolidation effects from emarketer), organic decrease of 4.7% Adj. EBITDA increase of 2.0% driven by international business (incl. cons. effects), organically 3.2% below prior year; Q4/17 impacted by higher restructuring expenses 39 News Media

40 Business Insider another year of strong growth in 2017 Company profile Revenue development in $m #1 global business publication by reach Major business news website in the US (founded 2007) Total reach of 123.9m monthly unique users and an average of 3.1bn video views per month in 2017 AS acquisition: Oct 2015 CAGR % Acquisition in 2015, based on a company valuation (cash/debt free) of $390m (~ 348m) Revenues up by 46% in FY/17 yoy % % 81 Revenues to grow > 30% (CAGR ), breakeven envisaged for H2/ News Media

41 Monetizing content in digital: positive development Digital subscribers 79, , , , % February 2018 vs. February May-14 Mar-15 Jan-16 Nov-16 Sep-17 Source: IVW 41 News Media

42 Marketing Media

43 Marketing Media segment at a Glance Overview Marketing Media #1 positions in all major marketing business models Double-digit organic revenue growth Reach Based Marketing Idealo aufeminin 1 Bonial (kaufda/retale) Performance Marketing Awin European market leader Awin in performance marketing merged with affilinet Finanzen.net (Main activities, 1) Sale envisaged in Q2/18) Financials 2017 Outlook 2018 (reported) Outlook 2018 (organic 2 ) Revenues in m High-single-digit % decline 3 High single-digit % growth 3 EBITDA (adj.) in m 95.6 High single-digit % growth Low double-digit % growth EBITDA margin (adj.) 9.7% 2) Adj. for effects from IFRS 16, consolidation and FX effects. 3) Revenue outlook based on 2017 revenues restated for negative effect of ~ 500m from IFRS 15 adoption. 43 Marketing Media

44 Strong Q4/17 for both Reach Based and Performance Marketing Reach Based Marketing Performance Marketing in m 2017 yoy Q4/17 yoy 2017 yoy Q4/17 yoy Revenues % % % % organic growth* 12.0% 8.5% 12.7% 16.8% Advertising % % % % Other % % % % adj. EBITDA** % % % % Margin 22.6% 0.0pp 30.9% 8.8pp 4.8% 0.4pp 5.8% 0.6pp Restructuring Exp Launch Costs adj. EBITDA ex. Restr./LC % % % % Margin 23.3% -5.8pp 30.8% 3.4pp 4.8% 0.3pp 5.8% 0.6pp * Adjusted for consolidation and FX effects. ** Total adj. Marketing Media EBITDA includes costs of 8.1m in FY/17 and 8.7m in FY/16 (thereof business development, M&A and other), not allocated to the two pillars. 44 Marketing Media

45 Marketing Media with double-digit revenue and adj. EBITDA growth in 2017 in m 2017 yoy Q4/17 yoy Revenues % % organic growth* 12.4% 14.0% Advertising % % Other % % adj. EBITDA % % Margin 9.7% 0.1pp 12.5% 2.6pp Restructuring Exp Launch Costs adj. EBITDA ex. Restr./LC % % Margin 9.9% -1.9pp 12.4% 0.7pp Comments Revenues up 15.0% in FY/17 (12.4% organic growth), increase of 28.4% in Q4/17 mainly driven by consolidation effect from affilinet (organically up by 14.0%) Adj. EBITDA up by 16.3% in FY/17 and up 61.9% in Q4/17 mostly due to a better development of finanzen.net and consolidation effects in the performance marketing business Adj. EBITDA for cons. and FX effects up 8.4% in FY/17 and 46.7% in Q4/17 * Adjusted for consolidation and FX effects. 45 Marketing Media

46 Envisaged sale of aufeminin at highly attractive purchase price Transaction history and rationale 2007 Acquisition of majority stake of One of the first digital investments of Axel Springer 2007 to 2016 High value added through our network Strong growth and international expansion Additionally supported through add-on acquisitions 2017 entering the next growth phase Sale to TF1 enables next step in aufeminin s development Deal terms Dec. 12, 2017: Put option agreement signed with Télévision Française S.A. (TF1) for the 78.43% stake in aufeminin Price per aufeminin share of corresponded to premium of 45.7% Highly attractive purchase price for Axel Springer stake of 286.1m 1, corresponding to 15x EV/EBITDA (2017) Completion of transaction requires clearance by the competent cartel authorities Closing expected in Q2/18 1) Price per share will be increased monthly by customary interest rate. 46 Marketing Media

47 Appendix

48 Organic revenue development digital media yoy FY/17 Q4/17 Q3/17 Q2/17 Q1/17 FY16 FY15 FY14 Digital Media 12.5% 14.5% 13.6% 10.7% 10.7% 10.7% 9.2% 7.6% Classifieds Media 12.7% 12.1% 15.1% 11.6% 12.0% 12.5% 12.9% 9.8% Jobs 17.0% 15.9% 21.8% 14.2% 16.2% 17.6% 21.2% 13.5% Real Estate 10.8% 8.5% 9.1% 12.4% 13.4% 6.3% 4.8% 6.0% General/Other 6.3% 8.6% 9.3% 4.6% 2.7% 9.7% 4.0% 9.8% News Media 12.0% 19.7% 10.2% 7.6% 7.9% 14.7% 3.2% 8.4% National 3.2% 7.3% 3.9% -1.1% 1.8% 17.4% 0.8% 11.5% International 25.1% 37.9% 18.2% 22.2% 18.0% 9.4% 8.2% 4.2% Marketing Media 12.4% 14.0% 13.8% 11.3% 10.5% 7.5% 9.2% 6.2% Reach Based 12.0% 8.5% 12.8% 11.6% 16.1% 15.6% 13.6% 7.8% Performance Based 12.7% 16.8% 14.4% 11.1% 7.9% 4.2% 7.7% 5.3% 48 Company presentation

49 IFRS 16: Exemplary impact on financial statements Example: Lease of company car for 3 years, leasing rate: 50 monetary units p.a. Today s accounting (IAS 17) Accounting from 2018 onwards (IFRS 16) Balance sheet No consideration Balance sheet t 0 t 1 t 2 t 3 Right-of-use asset car (discounted leasing payments) Depreciation Lease liability Repayment P&L t 1 t 2 t 3 Other operating expenses (adj. EBITDA) P&L t 1 t 2 t 3 Depreciation Interest expenses = Lease expenses (outside adj. EBITDA) ) Repayment + Interest expense = Lease payments (50 monetary units). 49 Company presentation

50 The future of our markets: shift towards online and constant growth continues Total Marketing Spend by Channel, F (in m) 2016 Germany 2020F Jobs 1, ,031 1,170 15% 37% 21% 50% +12% 63% 85% 50% 79% +3% UK F France Real Estate Germany Belgium % 6% 28% 23% 31% 9% 33% 5% 27% 65% 72% 69% 77% 67% 73% F F F Source: OC&C CAGR Offline Mkt Spend Online Mkt Spend 50 Classifieds Media

51 Our assets have consistently outperformed their respective online classifieds markets ( ) Axel Springer organic revenue growth 1 Total online classifieds growth 2 Jobs Germany 19.9% Jobs UK 8.2% Real Estate France 8.0% 3 Real Estate Belgium 10.5% % 5 5.4% 5 6.2% 7.7% One exception prior to the merger: Real Estate Germany 1.3% 13.0% 1) Organic (adjusted for consolidation and FX effects) revenue growth yoy, average, 2) OC&C: online classified marketing spend, 3) excl. Poliris, 4) Belgium: ; 5) Incl. CVDB. 51 Classifieds Media

52 Classifieds with very strong organic growth and high underlying margins Revenues Organic growth yoy Jobs +13.5% +21.2% +17.6% +17.0% Real Estate +6.0% +4.8% +6.3% +10.8% General/Other +9.8% +4.0% +9.7% +6.3% Total classifieds +9.8% +12.9% +12.5% +12.7% EBITDA margin, adj. Margin Jobs 45.9% 43.7% 42.9% 41.7% Real Estate 47.8% 46.4% 44.9% 50.4% General/Other 23.9% 30.7% 32.7% 32.0% Total classifieds 42.5% 40.5% 40.3% 41.0% 52 Classifieds Media

53 Jobs classifieds with continued excellent organic growth of 17.0% in 2017 Jobs 47% Comments Reported revenue increase of 15.4% below organic growth of 17.0% due to negative FX 34% effects (mostly British pound) Adj. EBITDA share** in m 2017 yoy Q4/17 yoy Revenues % % organic growth* 17.0% 15.9% adj. EBITDA*** % % Margin 41.7% -1.2pp 41.8% -3.0pp Continental European operations again the main driver for organic growth (+23.8%), UK also improving (H1/17: +4.7%, H2/17: +8.6%) Adj. EBITDA up 12.2% (adj. for cons. and FX effects +12.4%), alongside further investments for future growth * Adjusted for consolidation and FX effects. ** Of total classifieds subsegments adj. EBITDA contributions *** Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment adj. EBITDA which includes costs of 8.5m in FY/17 and 7.6m in FY/16 (thereof business development, M&A and other), not allocated to the three subsegments. 53 Classifieds Media

54 Jobs Marketing Spend 1 : Germany with double digit growth forecast in Online Classifieds (in m) 1, % 1, Turned Over Jobs 5.9m 5.5m 5.8m Spend / Job ) Figures may not add up to total per year due to rounding / Source: OC&C. +5% , CAGR Rev. Stream Referral Schemes 2% 5% Offline Branding -3% 0% Recruitment Events 2% 5% Print Classifieds -8% -3% Online Branding 35% 24% Professional Networks 37% 20% CV Databases 2% 5% Online Classifieds 16% 11% -1.5% 3.4% 1.0% 4.4% Germany CAGR 54

55 Competitor impact varies based on market characteristics and environment Competition Competitive Impact Continental Europe UK SAON Group Network Business model: Low Medium Medium Direct search, passive search, user subscription Facebook: Integration in marketplace Market share (online recruitment market)¹: GER: 4.7% in 2016, 6.3% in 2021 UK: 6.7% in 2016, 8.0% in 2021 Better quality of CV databases over profiles Low CV search pattern Recruiting agency industry drives use of direct search products Trends show resilience of CV database to substitution by networks Low CV search pattern Only Linkedin is established as a professional network Ireland serves as a first expansion destination for US players to gain foothold Aggregator / Jobboard Business model: Coming from a pure aggregator model (traffic provision to jobsites), Indeed now also offers active and passive search solutions directly to recruiters Low Consolidated markets Indeed blocked from crawling Medium Fragmented market Heavy investments by Indeed Low Consolidated markets Indeed blocked from crawling Market share: Part of online classifieds growth - share unknown 1) Share of professional networks of Online Recruitment market, 2016; Source: OC&C Strategy Consultants. 55

56 SAON Group provides double digit growth rates and high margins Financial development by subgroup¹ (in m) SAON Group Revenue +10% +11% +15% +7% +11% +14% +678% +30% EBITDA 37% 34% 30% 33% 20% % 40% 30% 20% 10% 0% SAON Group acquired in late 2013, CareerJunction in 2015 Growth in almost all countries around the world 1) All subgroups adjusted to current company structure, minor revenue recorded centrally is not presented, non-licensed product development costs are not recorded in operational subgroups. Organic growth EBITDA Margin 56

57 High customer retention provides a strong base for growth for StepStone Customer Retention Rate (in %) 1 StepStone Continental StepStone UK SAON Group 97% 96% 97% 98% 96% 95% 95% 93% 78% 84% 88% 86% 87% 86% 88% 87% 81% 80% 82% 81% 64% 73% 74% 73% Large customers Overall Retention 1) All sub groups reported based on pro forma development. 57

58 Real Estate classifieds with double-digit organic revenue growth and margin improvement Real Estate 35% Adj. EBITDA share** Comments Reported revenue growth of 7.2% below strong organic growth (10.8%) due to consolidation effect in France (sale of software business in 2016) in m 2017 yoy Q4/17 yoy Revenues % % organic growth* 10.8% 8.5% adj. EBITDA*** % % Margin 50.4% 5.5pp 49.0% 4.6pp All assets with high single-digit or double-digit organic revenue growth in FY/17 Adj. EBITDA up 20.4% (adj. for cons. And FX effects +21.4%) and margin up significantly, mainly driven by strong development at Immowelt * Adjusted for consolidation and FX effects. ** Of total classifieds subsegments adj. EBITDA contributions. *** Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment adj. EBITDA which includes costs of 8.5m in FY/17 and 7.6m in FY/16 (thereof business development, M&A and other), not allocated to the three subsegments. 58 Classifieds Media

59 Positive outlook for online property portals 9% annual growth in Germany expected until % annual growth in agent commission pool until fuels favourable marketing spend for online property portals Agent commission pool (bn ) +6% % Rental Sales Property marketing spend (in m) +6% +4% CAGR 16-20F +2% +10% -4% % Sources: Immowelt, OC&C (German residential real estate only). 2020F CAGR Other offline adv. Other online adv. 2020F Print adv. Online portals 59

60 Solid market growth over the last decade translated into online marketing budgets Belgian property market is very stable Indexed property sale transactions in Belgium, , 2012 = 100 Property Marketing spend by channel, in m Sales Transactions Index Average Sales Price Index Source: Statistics Belgium, OC&C. and relevant budgets are expected to expand Offline Online 83 27% 17% 14% 42% % 92 22% 11% 16% 51% 2016 Other Offline Advertising Print Advertising +3% % 9% 17% 56% 2020F CAGR (12-16) -3% CAGR (16-20F) -2% -7% -2% +6% +4% +8% +5% +11% CAGR Other Online Advertising Online Classifieds 60

61 Immoweb: THE reference for property search Belgians have a brick in their stomach Home ownership rate by country in 2016 and when it comes to real estate, 8 out of 10 Belgians think of Immoweb Unaided awareness questionnaire with 7.2k respondents in 09/ pp 70% x % 58% 46% 6% 2% 1% Germany 1 Source: OC&C, Produpress study, Eurostat 1) Latest available France Belgium 61

62 Immoweb outraces Belgian competition in market reach Immoweb attracts more than twice as many visitors than #2 competitor Average of monthly real visitors in FY/17 1 leading to strong and highly engaged traffic on Immoweb Average of monthly audience statistics on Top4 RE portals in FY/ m 11% 12% 116m minutes 6% 7% 12% 20% 2.2x 2.7x 3.5x 75% 57% Visits Time spent Source: CIM, Statistics Belgium. 1) Selected players (excl. app traffic). 62

63 Immoweb: Consistent revenue and EBITDA growth Successful growth of ARPA over the last years......results in strong revenue growth at leading EBITDA margins Weighted average monthly ARPA from professional customers, in CAGR +10% in m CAGR +10% % 64% 67% 70% 67% Going forward, Immoweb expects mid to high single-digit revenue growth and to maintain their margins. Revenues EBITDA EBITDA margin 63

64 Revenue and adj. EBITDA increase in General/Other mainly driven by consolidation effects General/Other 19% 25% Adj. EBITDA share** in m 2017 yoy Q4/17 yoy Revenues % % organic growth* 6.3% 8.6% adj. EBITDA*** % % Margin 32.0% -0.7pp 28.0% 0.3pp Comments Revenue increase of 23.0% mainly driven by consolidation effects in the vacation rentals business (6.3% organic growth with Yad2 and Carboat Media contribution in the high singledigits) Adj. EBITDA up 20.3% (adj. for cons. and FX effects +8.5%) * Adjusted for consolidation and FX effects. ** Of total classifieds subsegments adj. EBITDA contributions. *** Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment adj. EBITDA which includes costs of 8.5m in FY/17 and 7.6m in FY/16 (thereof business development, M&A and other), not allocated to the three subsegments. 64 Classifieds Media

65 LaCentrale works with professionals that have a significant used car activity Professional listings Listings per professional 1 (in k, monthly average FY/2017) (in k, monthly average FY/2017) % % Sources: Company Information 1) Professional ads divided by # of professionals on platform. 65

66 Stable traffic and listings development versus next competitor Total listings Traffic development since Apr. 15 Listing development since Apr. 15 (in k, monthly average) 1 (Index = 100) (Index = 100) 9.8m 900 Traffic 9M/17 3.8m Private Professional 1) Listings are based on FY/17 figures, traffic on 9M/ Sources: Company Information. 66

67 Carboat Media has benefited from constantly growing monetization Avg. ARPU growth 5%* , Customers ARPU (in ) * CAGR 12/13-12/17. Source: Company Information. 67

68 Carboat Media developed its EBITDA positively since AS acquisition Revenues & EBITDA (in m) CAGR +4% AS acquisition: July 2014 CAGR +14% Revenues EBITDA Market professionalization and product innovation to drive mid-single digit revenue and EBITDA growth 68

69 Strong network effects provide Yad2 s customers with significant liquidity and reach Listings (in k, monthly avg. 2017) 1 Visits (in m, monthly average 2017) 2 2nd Hand Real Estate Cars Jobs >3x 12.3 >22x >10x >27x Sources: 1) Company Information, 2) Similarweb, desktop & mobile traffic 69

70 Yad2 is best positioned to further grow its business along three strategic initiatives Israel s #1 Generalist 1 #1 Real Estate #1 Cars #1 Second Hand Become #1 in Jobs Comission-based business models New car & tire sales 1 Organic Growth 2 3 Getting closer to the transaction Explore adjacent opportunities Commercial & luxury real estate Financing, loans, insurance products 70

71 Yad2 has delivered a constant track record of revenue growth Revenue Development 28% 25% 13% % 40.0 Leading revenue stream with ongoing strong growth Second largest revenue stream. Since 2013 paid classifieds product for car dealers Gaining importance since Drushim acquisition in 2015 with goal of becoming clear # Going forward, Yad2 is expecting high single-digit revenue growth Revenues in m Organic YoY growth Sources: Company Information, Drushim acquisition closed in Sept ) 2014 represents FY as AS acquisition closed in May. 71

72 @Leisure focuses on the supply/homeowner side of the market Homeowner Full-service >33k Inventory Secondary homes Other Fullservice provider Aggregator >500k 1 Inventory Guest Self-service >80k Inventory Primary homes 1) There will be some overlap between vacation rentals on Casamundo and on platforms. 72

73 Companies offer differing service levels, take rate increasing with the service level Full Service Additional services Full-service Self- Service Acquisition of Guests Booking, Invoice & Cash Collection Calendar Management Customer Service Content management Pricing management Key Exchange and cleaning Acquisition of Homeowners Self Service 2% 15% Note: Graph shows simplified competitive landscape. Because of hybrid models, landscape is more complex than depicted. 30% 50% Take rate 73

74 Consolidation opportunity: home owner side with low degree of digitization and professionalism Share of (professionally) marketed vacation rentals is low in a very fragmented industry Holiday homes in Europe (in m) 10 1/3 of inventory potential for active marketing by owners or professionals ~13% Approximate ~3% inventory share of leading player 24 8 Additional potential for professional marketing Total vacation homes in Europe Not for rent Not actively Marketed by owner / marketed Self-service Source: Phocuswright, Radius Global Market Research (2011). 4 2 Marketed professionally / Full-service 74

75 @Leisure with buy and build strategy and double-digit revenue full year revenue and EBITDA % 15% 20% Notes EBITDA in 2016 and 2017 impacted by marketing and product investments as well as one-off costs (e.g. M&Arelated) Outlook: Further investments into post-merger integration, data and product offerings in 2018, mid-term return to ~20% EBITDA margin Revenue as reported EBITDA as reported x% EBITDA margin Revenue: >1.5x in next 3-5 years 1 EBITDA: >2.0x in next 3-5 years 1 1) Based on FY/16 figures. 75

76 emarketer with strong revenue growth and high margins Company profile A leading provider of high-quality analyses, reports, and digital market data for companies and institutions Founded in 1996; based in New York City ~1,200 corporate subscribers (2/3 of Fortune 500 and 2/3 of US top national advertisers) ~10,000 citations in worldwide media per month Revenues to grow double-digit* (CAGR ), EBITDA margin to reach 40%+ until 2019 (from 30% in 2015) * Based on FY/15 revenues of $45.5m. High customer satisfaction and retention Renewal Rate (in %) Recapture Rate (in %) by subscription type 1 by subscription type Limited Seat Open Access 1) As of December 31 Source: Company information. 76 News Media

77 upday Europe s biggest mobile news service Company profile European Footprint Strategic partnership to develop mobile news services exclusively for Samsung devices #1 news app in Europe Delivering up to 10% of publishers mobile traffic Advertising for a targeted audience with non-intrusive formats More than 20 million monthly users on major Samsung smartphones (flagships, A-series and J-series) Expansion onto other Samsung devices (Tablets, Smart TV, Family Hub fridges) Country editions launched in 2016 Country editions launched in 2017 Editorial offices since 2016 Editorial offices since News Media

78 Merger of AWIN and affilinet strengthens competitive position in Europe The leading European performance marketing network, present in 13 countries with 6,000 advertisers A leading European performance marketing network, present in 7 countries with 3,500 advertisers Organic low double-digit EBITDA increase of AWIN group expected going forward Transaction closed in October 2017, IPO envisaged after period of integration Holding structure: 80% Axel Springer, 20% United Internet Two leading performance marketing networks have joined forces to drive future growth and innovation 78 Marketing Media

79 Investor Relations contacts Claudia Thomé Co-Head of Investor Relations Phone: Mobile: Daniel Fard-Yazdani Co-Head of Investor Relations Phone: Mobile: Axel Springer SE: Axel-Springer-Str. 65, Berlin, Germany, Fax: Company presentation