Bank of America Merrill Lynch TMT Conference London, June 9th, Lothar Lanz, CFO & COO

Transcription

1 Bank of America Merrill Lynch TMT Conference London, June 9th, 2011 Lothar Lanz, CFO & COO

2 Disclaimer This document, which has been issued by Axel Springer Aktiengesellschaft (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 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. 2

3 Axel Springer has started transforming its business over the past 6 years to create a leading European integrated multimedia company Axel Springer in 2004 Axel Springer in Q1/2011 Our Vision Digital 2% Digital 29% 1) Europe s leading integrated multimedia company Print 98% Print 71% 50% digital 50% print Strong brands Digital activities represent 29% 1) of revenues and 20% of EBITDA in Q1/2011 1) Pro forma for acquisitions 3

4 Our strategy focuses on our core competencies 1 Leadership in Germany Strengthen and expand leading market position Strong brands drive high media reach and advertising revenues Core Competencies 2 International expansion 3 Digital transformation Replicating the German model internationally JV with Ringier in CEE Existing brands extended online Business model enhanced in digital world 4

5 1 Germany represents a unique newspaper market Key themes in German market National newspaper circulation revenues (07-10 CAGR) Strong circulation revenues in Germany Higher proportion of total revenues than in other countries More resilient than in the UK and the US Potential for regular cover price increases Higher share of younger readers No free sheets Strong position of BILD with 80% 1) market share Newspapers with higher share of advertising spend than TV as opposed to US 2) 0.9% 0,9% 0.6% 0,6% -2.0% -2,0% -5.3% -5,3% 3) Axel Springer 4) Germany 4) UK 4) US (reach in m) 12.5 Wetten, dass? BILD 8.9 BILD reach vs TV shows 5) 2.4 Les Restos du Coeur 8.9 L Equipe 3.7 Navy CIS WSJ The X Factor 13.7 The Sun 1) Including Berlin newsstand newspaper B.Z.; market share based on paid circulation of newsstand newspapers 2) Source: ZenithOptimedia December ) Source: company information 4) Source: PwC Global Entertainment and Media Outlook, , 2009 projected, forecast 5) UK: TV reach for The X Factor RESULTS , BARB (BroadcastersAudience Research Board); average reach of Sun between Apr.09 to Mar. 10 NRS (National Readership Survey), USA: USA Reader Brand Research; MRI Spring 2010, Nielsen Television - TV Ratings for Primetime : Season-to-Date, France: Daily newspapers: EPIQ-Studie 2009/2010, TV: Viewers 4J.+ Mediametrie 2009 Mediamat annuel; Germany: Average for Wetten, dass? 2010 ( ), Viewers age 14+, AGF/GFK-TV Panel, ma 2011 Pressemedien I (German speaking population) 5 5

6 1 Axel Springer is Germany s leading print marketer and publisher Market share by circulation 1) Market share by adspend 3) 18% With 18% market share, Axel Springer reaches 53% of the German population 2) 17% 7% 7% 9% 7% 5% 4% 4% 5% 4% 3% 3% Axel Springer Bauer WAZ SWMH Burda Holtzbrinck G+J Axel Springer G+J Burda WAZ Bauer DuMont Newspapers Magazines Newspapers Magazines 1) Source: Company estimates based on IVW Q1/2011, paid circulation; weighted market share taking into account different title frequencies 2) Source: ma 2011 Pressemedien I; combined reach among German-speaking 14+ year olds of all covered Axel Springer AG newspapers, magazines and 100% owned subsidiaries 3) Source: Nielsen Media Research; gross adspend, excl. classified ads, supplements and media advertising, 2010 Jan.-Dec., 100% owned subsidiaries and Jahr Top Special Verlag 6

7 1 Axel Springer is Germany s leading print publisher Core Axel Springer brands Axel Springer market share 1) Newsstand papers No. 1 80% National Sunday newspapers No. 1 84% National quality papers No. 3 17% Regional subscription papers 2) No. 1 92% No. 1 34% Magazines No. 3 13% 1) Based on paid circulation IVW Q1/2011 2) Figures based on regional markets accordingly (Hamburg: no regional newspapers besides AS titles, Berlin: N 2-Berliner Zeitung, N 3-Tagesspiegel) 7 7

8 2 Axel Springer: A strong platform for international expansion Ringier Axel Springer Media Individual countries Digital Czech Republic Poland Switzerland Spain France Slovakia Serbia Hungary 1) Combining reach of No. 1 tabloid positions in all JV countries Goal: Further growth and digitization in CEE Russia India Country-by-country approach Strong media portfolios and market positions in each country International roll-out of successful digital business models (partly without physical presence) Making use of network effects and economies of scale 1) Filing of cartel authorization withdrawn in May 2011, further options regarding new filing currently under evaluation. 8

9 3 Digital strategy along core competencies Core Competencies A Content portals Audience B Classifieds / Marketplaces Advertisers C Performance marketing Cross-synergies between core competencies increase revenues and profitability 9

10 A BILD example of our successful transition to digital channels News 1) 200m Site visits (in m) 150m 100m 50m Jan 08 Jun 08 Nov 08 Apr 09 Sep 09 Feb 10 Jul 10 Dez 10 2) 2) 2) Sport Automotive Computer Site visits (in m) , , ,0 Site visits (in m) 7.4 7, , ,3 Site visits (in m) , , ,3 3) /sport Kicker Online Sport1.de Auto Motor und Sport 1) Source: IVW, March ) Source: IVW, Jan March 2011 (monthly average) 3) Axel Springer s sport sites include: sportbild.de, Bild.de/Sport and Transfermarkt; Source: IVW (Transfermarkt), Webtrekk (sportbild, Bild.de/Sport) Auto News Chip.de Pcwelt.de 10

11 A aufeminin.com: Revenue growth by 11% in Q1/2011, clear market leader Development of aufeminin.com s revenues (in m) Strong international presence (UV in m) +11% Q1/2009 Q1/2010 Q1/2011 Revenues France Revenues International France: #1 aufeminin Journal des Femmes Germany: #1 gofeminin Brigitte Italy: #1 alfemminile Style.it Spain: #1 enfemenino Yahoo! Lifestyle Belgium: #1 2.7 aufeminin MSN Lifestyle 0.9 UK: #1 sofeminine Marieclaire.co.uk Source: FR: Médiametrie // NetRatings March 2011 DE: AGOF internet facts 2011-I IT: comscore March 2011 ES: Nielsen Jan BE: cim.be March 2011 UK: comscore March

12 A Premium content initiative: Successful on different channels Smartphones Tablets News Portals ikiosk Over 400,000 BILD apps sold* WELT HD: #1 newspaper app HA and BM: Traffic up by over 50% PDF editions of 19 titles available online and for the ipad Over 500,000 sales and 800,000 downloads* Market launch of Android apps Bundled equipment and subscriptions *Status: Press information December 8, 2010 Perspectives for 2011 Metered Models Central platform for all epaper and print titles by subscription and e- sales 12

13 A Growth of mobile internet devices drives demand for content Distribution in Germany in million CAGR Mobile Internet access Smartphones % 16.0% Tablet PC ereader % 90.0% Source: PwC, Global Entertainment and Media Outlook ; PwC, E-Books in Germany, Sept. 2010; JOM, June

14 B Axel Springer acquires market leading French real estate portal SeLoger.com Key facts No. 1 real estate classifieds portal in France More than 1.1m offers September 2010: Acquisition of 12.4% from founders April 2011: Public tender offer and squeeze-out successfully completed Purchase price: approx. 633m Financials in m * Company information SeLoger.com Revenues EBITDA Average time on site in minutes Clear market leadership Logic-immo.com Explorimmo Refleximmo A Vendre A Louer Acheter-Louer.fr Unique Visitors in m Source: Médiamétrie/NetRatings January 2011) 14

15 C Online Performance Marketing Axel Springer shapes Zanox as European market leader Highlights Acquisition of continental European market leader zanox in /10: Expanding market leadership to the UK by add-on acquisitions of digital window and buy.at Resilient business maintaining organic growth during the crisis Peers outperformed achieving market share gains Acquired 08/ /

16 Investment criteria Strategic fit Proven and profitable business models Great management Reasonable valuation Added value through Axel Springer network 16

17 Financial performance

18 Strong financial performance and EBITDA on all-time high in 2010 Revenues in m EBITDA in m 2,864 2,777 2,894 2,321 2,402 2,392 2,376 2,578 2,729 2, % % % % 17.3% 18.2% 18.2% 17.8% 12.8% 17.6% 1) 1) ) 1) Digital revenues Print revenues EBITDA EBITDA margin 1) According to HGB 18

19 Operating segments show strong margins, international and digital growing (in m) Newspapers National Magazines National Print International Digital Media Q1/11 Q1/10 yoy Q1/11 Q1/10 yoy Q1/11 Q1/10 yoy Q1/11 Q1/10 yoy Revenues % % % % Circulation % % % Advertising % % % % Other % % >100% % EBITDA % % >100% % EBITDA margin 22.3% 26.8% 20.6% 21.1% 17.0% 7.5% 12.8% 8.3% 19

20 Strong cash flow generation and high dividend payments Free cash flow (ltm 1), in m) Dividend payments (in m) Dividend payments ( /share) Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/ ) Last twelve months 20

21 Free cash flow/net financial position in m Free cash flow Net financial debt / liquidity 1) /31/10 03/31/ Q1/2010 Q1/ Credit line of 1.5bn secured until 2012, 1bn thereof extended until ) Excl. pension liabilities (12/31/10: - 389m; 03/31/11: - 373m) and treasury shares (12/31/10: 0.2m shares; 03/31/11: 0.2m shares) 21

22 Adjusted eps increases by 6.7% in Q1/2011 Net income Non recurring-effects 1) Q1/ Q1/ Effects of purchase price allocations Taxes attributable to these effects 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 2) Adjusted eps (in ) ) Previous year: Non-recurring effects and other non-operating effects. 2) Based on weighted average number of shares outstanding in

23 Looking ahead

24 All-time high in EBITDA, digital and international growth drivers in 2011 Group outlook 2011 Revenues EBITDA Single digit increase yoy Low double digit increase yoy Revenue categories Circulation Advertising Other > 2010 > 2010 > 2010 Segment outlook 2011 Newspapers National Magazines National Print International Digital Media Services/ Holding Revenues ~ 2010 < 2010 > 2010 > 2010 ~ 2010 EBITDA < 2010 < 2010 > 2010 > 2010 > 2010 Mid term margin targets EBITDA 25% 20% 15% 20% - 24

25 Key investment highlights No. 1 publisher in Germany, leading market positions across Europe CEE JV creates the leading platform in the region Proven digitization strategy: Already 29% 1) of revenues digital Additional monetization through paid content, growth potential in mobile Added value through cross-media benefits across the portfolio Strong profitability, healthy balance sheet, and high dividend 1) Pro forma for acquisitions 25

26 Backup - Financials Q1/2011

27 Axel Springer with EBITDA on all-time high in m Revenues Circulation Advertising Other EBITDA Margin Q1/ % Q1/ % yoy +11.0% +4.1% 21.1% -1.9% +6.5% -0.8pp Revenues up 11.0% yoy, adjusted for consolidation effects +5.0% Circulation revenues slightly up, adjusted down by 2.0% Advertising growth (+21.1%) driven by organic growth (+10.6%) and acquisitions; main growth drivers: digital media and CEE JV EBITDA margin slightly down yoy from 18.0% to 17.2% 27

28 Cost increase mainly driven by acquisitions in m Q1/2011 Q1/2010 Personnel Purchased goods and services Other operating yoy +2.4% +17.0% +13.0% Total Costs % Total costs up by 61.7m, mainly due to consolidation effects and in line with revenue development Total costs ex consolidation effects slightly up mainly due to increase in marketing and sales campaigns, paper and IT/infrastructure costs Personnel costs slightly up: build-up in international and digital business versus slight decline in print 28

29 Newspapers National: EBITDA down yoy due to lower revenues and slightly increased cost base in m Q1/2011 Q1/2010 yoy Circulation revenues slightly down Revenues Circulation Advertising % -1.3% -5.1% Advertising revenues down yoy mainly due to less sales driven campaigns in newsstand papers and lower classifieds advertising Other EBITDA Margin % % -11.5% -19.6% -4.5pp EBITDA down yoy mainly due to advertising revenue decrease and increase of costs for marketing and sales campaigns as well as paper 29

30 Magazines National: Advertising revenues up significantly in m Revenues Circulation Q1/ Q1/ yoy -4.5% -9.0% Total revenues down by 4.5%, adjusted for portfolio changes up by 1.7% First organic yoy revenue increase since many quarters Advertising Other EBITDA Margin % % +4.7% +11.9% -7.0% -0.6pp Circulation revenues down by 9.0%, adjusted down by 2.6% Ad revenues up by 4.7%, adjusted even up by 8.4% Strong performance especially due to automotive EBITDA slightly down mainly due to increase of paper costs 30

31 Print International: Improved revenues and strong EBITDA increase in m Revenues Q1/ Q1/ % yoy ex cons 1) yoy yoy Revenues growing by 57.7%, ex cons/fx 2) adjusted for consolidation and FX +0.4% -3.0% effects -3.0% yoy Circulation Advertising % +75.2% -3.7% +9.1% -7.0% +5.2% Advertising revenues up significantly, adjusted +5.2% Other EBITDA >100% >100% -1.2% +46.6% -1.0% +38.9% EBITDA improved considerably, margin up from 7.5% to 17.0% in Q1/2011 Margin 17.0% 7.5% +9.5pp EBITDA increase due to the CEE JV consolidation and positive development in Switzerland and Russia 1) Excluding consolidation effects. 2) Excluding consolidation and foreign exchange effects. 31

32 Digital Media: Continued organic growth at 22%, EBITDA almost doubled in m Revenues Advertising Other EBITDA Margin Q1/ % Q1/ % yoy +26.3% +45.6% -20.9% +94.5% +4.5pp Revenue growth of 26.3% in Q1/2011 Organic growth of 22.1% in Q1/2011 (based on pro forma revenues of 216.6m in Q1/2011 versus 177.3m in Q1/2010) Pro forma revenues Digital Media at 28.8% of pro forma total revenues (Q1/2010: 26.0%) EBITDA almost doubled, margin up from 8.3% to 12.7% 32

33 Investor Relations contacts Claudia Thomé Head of Investor Relations Phone: Mobile: Daniel Fard-Yazdani Deputy Head of Investor Relations Phone: Mobile: Axel Springer AG Axel-Springer-Str Berlin / Germany Fax: