UniCredit / Kepler Cheuvreux German Corporate Conference 2018

Transcription

1 UniCredit / Kepler Cheuvreux German Corporate Conference 2018 Frankfurt, January 15, 2018 Dr Julian Deutz, CFO Claudia Thomé, Co-Head of Investor Relations

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 77% 1 of EBITDA from digital activities Organic growth supported by targeted M&A with strong track record Strong FCF, high dividend yield and payout ratio (2016: 79%) Revenues by segment 1 EBITDA by segment 1,2 2% 11% 26% 29% Classifieds Media 31% 58% News Media 43% Marketing Media Services / Holding Financials 2016 Outlook 2017 Revenues in m 3,290.2 Mid single-digit % growth EBITDA in m High single-digit % growth 3 EBITDA-margin 18.1% EPS (adj.) in 2.41 High single-digit % growth 3 DPS (FY 2016) in ) Based on 9M/17 figures. 2) Negative EBITDA S/H allocated proportionally to operative segments. 3) Previously: mid to high single-digit % growth. 3 Company presentation

4 EBITDA up 13.0% in 9M/17 driven by Classifieds and News Media in m 9M/17 yoy Q3/17 yoy Revenues 2, % % Advertising 1, % % Circulation % % Other % % EBITDA % % Margin 18.5% 1.0pp 18.2% -0.1pp Comments Revenues adjusted for cons. and FX effects +5.7% (ad revenues +10.7%, circulation revenues -5.3%, other revenues -3.0%) EBITDA up 13.0% (adj. for cons. and FX effects +8.2%) driven by continued growth in Classifieds and a strong development in News Media Restructuring Exp Launch Costs EBITDA ex. Restr./LC % % Margin 20.3% 0.3pp 20.2% -0.3pp 4 Company presentation

5 Digital revenues 71% of total revenues with organic growth of 11.7% in 9M/17 (Q3/17: 13.6%) Revenues Advertising Revenues EBITDA 71% 87% 77% digital digital digital 5 Company presentation

6 Key messages 2017 well on track 1 More disclosure on classifieds Positive response to new single-asset disclosure and dedicated CMDs in London and New York in June 17 Access to classifieds senior management appreciated Increased disclosure and better visibility as basis for re-evaluation of assets (especially of jobs classifieds) Strict M&A discipline in content Guidance: No loss-making content acquisitions before existing digital content businesses have proven profitability Strong progress at Business Insider with revenues up >50% yoy in 9M/17 (40-45% for FY/17 expected) Break-even for Business Insider envisaged for H2/ Stable EBITDA in News Media Mid-term guidance given: EBITDA to be stable in a range between 205m and 225m for News Media EBITDA up 23.2% yoy in 9M/17 Leading digital publisher Focus on classifieds and content Option negotiated to sell aufeminin at ~16x EV/EBITDA (2017e) Merger of awin and affilinet in performance-based marketing with IPO as exit option 6 Company presentation

7 Outlook 2017 Revenues EBITDA eps (adj.) Mid single-digit % growth High single-digit % growth High single-digit % growth Group Classifieds Media News Media Marketing Media Services/Holding Revenues Low double-digit % growth On prior-year level High single-digit to low double-digit % growth Significant decline EBITDA Low double-digit % growth On prior-year level High single-digit to low double-digit % growth Significantly down* * Higher negative EBITDA. 7 Company presentation

8 Classifieds Media

9 Classifieds Media: leading digital classifieds operator Highlights Leading digital classifieds operator Portfolio of market leading classifieds: 82% 1) of revenues from #1 market positions Digital classifieds clear beneficiary of structural shift from offline to online Strong market positions yielding high margins 1) Based on FY/16 figures. Jobs #1 in Germany, Belgium #1 in UK #1 in Ireland, South Africa Financials Classifieds Media Real Estate #1 in France #2 in Germany #1 in Belgium 2016 Outlook 2017 Vacation Rental #1 in Netherlands & Belgium Cars #1/2 in France Generalist #1 in Israel Revenues in m Low double-digit % growth EBITDA in m Low double-digit % growth EBITDA margin 40.3% Local #1 in Germany 9 Classifieds Media

10 The underlying markets of our assets show attractive dynamics Total online and offline marketing spend, (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 10 Classifieds Media

11 Classifieds Media with double-digit organic revenue growth of 12.9% in 9M/17 (Q3/17: 15.1%) in m 9M/17 yoy Q3/17 yoy Revenues % % organic growth* 12.9% 15.1% Advertising % % Other % % EBITDA** % % Margin 41.3% 0.7pp 42.4% 1.5pp Comments Revenue increase of 15.5% due to continued strong organic growth (12.9% in 9M/17 and even 15.1% in Q3/17) as well as consolidation effects EBITDA up 17.7% (adj. for cons. and FX effects +15.4%) and slight margin improvement * Adjusted for consolidation and FX effects. ** Total EBITDA includes costs of 6.8m in 9M/17 and 5.0m in 9M/16 (thereof business development, M&A and other), not allocated to the three pillars. 11 Classifieds Media

12 Goal to become a comprehensive E-Recruiting company Career guidance Orientation Search jobs Career development 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 12

13 2016 (GER/UK)¹ 2008¹ 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% 83% (96%/51%) 16% (3%/48%) 1% (1%/1%) 1) Increase of Direct Search due to acquisition of UK businesses in 2012/2014 and respective market specifics 13

14 StepStone: Continued double digit organic growth Group Revenue (m ) StepStone outperforms other players and has survived numerous so called disruptive business models CAGR total: +30% +21% +18% organic growth 23 Lehman Unemployment Office Company websites Google base referral sites Craigslist Social networks Agents Google Jobs Social networks Social networks Indeed / Meta search engines Google / Facebook Indeed 14

15 StepStone Continental continues to provide strong organic growth Financial development by subgroup¹ (in m ) Revenue EBITDA StepStone Continental +27% +26% +27% +14% +27% +3% +3% +16% % +22% % 58% 59% 50% 52% % 58% H1/16 H1/ H1/16 H1/17 1) All subgroups adjusted to current company structure, minor revenue recorded centrally is not Organic growth Reported EBITDA Reported margin presented, non-licensed product development costs are not recorded in operational subgroups 15

16 Solid organic growth in the UK for StepStone Financial development by subgroup¹ (in m ) Revenue EBITDA StepStone UK +3% +8% 29% +11% 22% 25% 24% +11% +5% +67% -8% 20% % +29% -5% H1/16 H1/ % 14 H1/16 15% 9 H1/17 TJG acquired early 2012, Jobsite late 2014 Focus has been on product improvements (post acqu.) BREXIT & sales management issues affected 2016 result Capitalisation of superior candidate delivery to follow 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 Reported EBITDA Reported margin 16

17 StepStone holds #1 positions in candidate delivery in core markets Candidate Delivery¹ - StepStone Continental Germany Belgium Austria StepStone DE 15.3 StepStone BE 14.8 derstandard 21.2 Stellenanzeigen 6.1 Jobat 9.6 StepStone AT 17.3 Monster 5.2 Regiojobs 8.5 Karriere.at 17.0 Linkedin 5.1 Indeed 7.0 kurier.at 10.4 Jobware 4.6 Linkedin 7.0 Monster 7.8 Indeed 3.4 Vacature 6.5 Indeed 1.9 Xing 2.8 Monster 5.6 Linkedin 1.8 1) Average # of applications per job ad. Source: TNS, figures are corrected for outliers. 17

18 In all markets StepStone holds #1 positions in candidate delivery Candidate Delivery¹ - StepStone UK Candidate Delivery¹ - SAON Group United Kingdom Ireland South Africa Totaljobs 18.6 Jobsite 16.1 Potential: 34.7 Jobs.ie 31.2 Irishjobs 17.8 Pnet CJ 64.6 Reed 13.3 Indeed 13.5 Careers CVLibrary 12.7 NIJobs 9.8 Linkedin 29.3 Indeed 11.6 Linkedin 6.1 Monster 5.6 Linkedin 2.4 1) Average # of applications per job ad. Source: TNS. 18

19 Increasing customer numbers drive StepStone s businesses Customer number by subgroup (k) 1 StepStone Continental StepStone UK SAON Group % 19% 73% +9% % 18% 74% +9% % 17% 76% Changed business focus of Jobsite after acquisition, removed low value contracts % 3% 84% -11% % 81% 4% % 16% 81% +13% % 12% 45% 44% +3% +13% % 45% 42% 44% 48% LTM 2 1) Customer count based on active contracts in a year except StepStone Germany and TJG where end customer (listing owner) are counted. ictjob and Tecoloco not included 2) Last twelve months, per September large medium LTM LTM 2 small 19

20 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, Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 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 20

21 Growth in core and verticals drive SeLoger s profitability Constant roll-out of new products has been valued by customers Average monthly ARPA made with professional customers, in CAGR % +9% Historical Revenue and EBITDA performance Revenues and EBITDA in m % CAGR % CAGR % +19% +8% +12% Source: SeLoger 1) excl. effects of Poliris business, deconsolidated in M/ SeLoger expects to maintain this growth trajectory and performance SeLoger excl. verticals SeLoger incl. verticals Others Verticals Core EBITDA H1/16 H1/17 Revenues Organic growth 21

22 SeLoger: highest number of professional listings in France Average number of listings Jan-Jul 2017 in k 1 1, % Source: autobiz 1) Based on monthly data private listings 22

23 Merger opportunity: SeLoger and LogicImmo ~ 128m in revenues high in ~ 68m in revenues high in 2016 low low Google Trends analysis on keyword Seloger in Unique users in m 1 Google Trends analysis on keyword Logic Immo in SeLoger will work on a detailed integration plan once the merger has been closed after clearance by the French Competition Authority Source: Google Trends, Mediametrie, SeLoger, SPIR 1) Unique users, global users in m, Q1/2017 2) SeLoger and Logic Immo indexed to keyword request Seloger for Île-de-France 3) excl. effects of Poliris business, deconsolidated in

24 Immowelt: number of DUO agents surpassed number of IS24 core agents Highly successful DUO migration expected to be completed in 2017 at very low churn Number of agents in Germany 2 97% of agents have migrated to DUO [k] Sep Dec Mar Jun Sep Dec Mar Jun Sep-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 24

25 Stable relative position for residential listings, slight decline due to market conditions Stable relative listings position in tight German residential market Number of residential listings (k) 1-1% 300k -0.3% IS24 200k 100k IW 0k Q3/16 Q3/17 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 25

26 Immowelt s ARPU increased steadily over last quarters Immowelt with strong ARPU growth but below main competitor ARPU ( /month) 1 ARPU ( /month) % IS24 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 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 26

27 Immowelt: Strong revenue growth with increasing EBITDA Substantial revenue growth 15.6% from H1/16 to H1/17 20% EBITDA margin to increase to more than 40% after brand investments Revenue (m ) EBITDA (% of revenue) +15.6% 54.3m 47.0m 33.7% 19.4m >40% >40% 19.0% 20% H1/16 H1/ F 2018F 2019F Sources: Immowelt 27

28 Outlook: Continuous growth in brand awareness, performance, revenues and EBITDA 2017 Financial outlook Marketing Continue with significant marketing efforts Operations Revenues Create value from user data (profiling & analytics) Double-digit growth driven by ARPU increase and stable agent base Profitability EBITDA margin to increase to >40% in 2019 after brand investment phase 28

29 News Media

30 News Media segment at a Glance Highlights 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 Innovative mobile news service for Samsung devices Stable EBITDA in News Media in a range between 205m - 225m for National BILD group WELTN24 group (Main activities) Financials 2016 Outlook 2017 Revenues in m 1,481.6 On prior-year level EBITDA in m On prior-year level EBITDA-margin 14.5% News Media International Business Insider emarketer upday Ringier Axel Springer Media (Poland, Hungary, Serbia, Slovakia) 1 Ringer Axel Springer Schweiz 2 1) Fully consolidated (50% stake) 2) Consolidated at equity 30 News Media

31 Business Insider strong first three quarters 2017 Company profile Multiple international editions N 1 global business publication by reach Major business news website in the US (founded 2007) Long-term equity incentive for Henry Blodget (Founder, CEO & Editor-in-chief) Acquisition in 2015, based on a company valuation (cash/debt free) of $390m (~ 348m) Revenues up >50% in 9M/17 yoy (40-45% expected for FY/17) Revenues to grow > 30% (CAGR) until 2020, breakeven envisaged for H2/18 31 News Media

32 Monetizing content in digital: positive development Digital subscribers , ,571 78, , % November 2017 vs. November May-14 Dec-14 Jul-15 Feb-16 Sep-16 Apr-17 Nov-17 Source: IVW 32 News Media

33 EBITDA up yoy for News Media National and International News Media National News Media International in m 9M/17 yoy Q3/17 yoy 9M/17 yoy Q3/17 yoy Revenues % % % % thereof digital (reported) % % % % thereof digital (organic growth*) 1.5% 3.9% 19.4% 18.2% digital share of revenues 22.7% 0.9pp 22.7% 1.1pp 60.2% 10.7pp 60.6% 6.3pp Advertising % % % % Circulation % % % % Other % % % % EBITDA % % 35.2 >100 % % Margin 16.1% 1.3pp 15.0% -0.7pp 12.3% 7.6pp 13.6% 5.3pp Restructuring Exp Launch Costs EBITDA ex. Restr./LC % % % % Margin 18.1% 1.4pp 17.1% 0.0pp 18.5% 4.5pp 20.1% 3.3pp * Adjusted for consolidation and FX effects. 33 News Media

34 News Media EBITDA up 23.2% improvements both from international and national businesses in m 9M/17 yoy Q3/17 yoy Revenues 1, % % thereof digital (reported) % % thereof digital (organic growth*) 8.6% 10.2% digital share of revenues 32.5% 4.5pp 32.3% 2.9pp Advertising % % Circulation % % Other % % EBITDA % % Margin 15.1% 2.6pp 14.7% 0.7pp Restructuring Exp Launch Costs EBITDA ex. Restr./LC % % Margin 18.2% 2.1pp 17.9% 0.8pp * Adjusted for consolidation and FX effects. Comments Revenues up 1.9%, adj. for cons. (mostly emarketer) and FX effects down by 0.8% 32.5% of revenues from digital Advertising revenues +8.5%, adj. for cons. and FX effects still up by 6.7% Reported circulation revenues down -1.4% (positive consolidation effects from emarketer), down 5.3% adj. for cons. and FX effects EBITDA up 23.2% reported, +15.1% organically, improvements both from international as well as national businesses 34 News Media

35 Marketing Media

36 Marketing Media segment at a Glance Highlights Marketing Media #1 positions in all major marketing business models Awin European market leader in performance marketing Double-digit organic revenue growth Reach Based Marketing Idealo aufeminin 1) Bonial (kaufda/retale) (Main activities, 1) Sale envisaged in Q2/18) Performance Marketing Awin (formerly: zanox) Merger of AWIN and affilinet Financials 2016 Outlook 2017 Revenues in m High single-digit to low double-digit % growth EBITDA in m 82.2 High single-digit to low double-digit % growth EBITDA margin 9.6% 36 Marketing Media

37 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 Francaise S.A. (TF1) for the 78.43% stake in aufeminin Price per aufeminin share corresponded to premium of 45.7% Highly attractive purchase price for Axel Springer stake of 286.1m 1), corresponding to ~16x EV/EBITDA (2017e) 2) Completion of transaction requires clearance by the competent cartel authorities and information and consultation procedure of works council of aufeminin Closing expected in Q2/18 1) Price per share will be increased monthly by customary interest rate 2) Based on 2017 EBITDA forecast at time of signing 37 Marketing Media

38 Reach Based Marketing with double-digit organic revenue growth but margin decline in 9M/17 Reach Based Marketing Performance Marketing in m 9M/17 yoy Q3/17 yoy 9M/17 yoy Q3/17 yoy Revenues % % % % organic growth* 13.5% 12.8% 11.0% 14.4% Advertising % % % % Other % % % % EBITDA** % % % % Margin 19.3% -3.6pp 16.8% 3.2pp 4.3% 0.2pp 3.9% 0.3pp Restructuring Exp Launch Costs EBITDA ex. Restr./LC % % % % Margin 20.3% -9.5pp 18.1% -3.7pp 4.3% 0.1pp 3.9% 0.3pp * Adjusted for consolidation and FX effects. ** Total EBITDA includes costs of 6.6m in 9M/17 and 5.8m in 9M/16 (thereof business development, M&A and other), not allocated to the two pillars. 38 Marketing Media

39 Marketing Media with double-digit organic revenue growth and EBITDA up 39.6% in Q3/17 in m 9M/17 yoy Q3/17 yoy Revenues % % organic growth* 11.8% 13.8% Advertising % % Other % % EBITDA** % % Margin 8.4% -1.1pp 7.2% 1.4pp Restructuring Exp Launch Costs Comments Revenues with 11.8% organic growth (ad revs %, other revs %) EBITDA only slightly below prior year in 9M/17 and up 39.6% in Q3/17 mostly due to a better performance of aufeminin and idealo compared to H1/17 EBITDA adj. for cons. and FX effects -8.0% in 9M/17 and +23.8% in Q3/17 EBITDA ex. Restr./LC % % Margin 8.7% -3.1pp 7.6% -0.9pp * Adjusted for consolidation and FX effects. ** Total EBITDA includes costs of 6.6m in 9M/17 and 5.8m in 9M/16 (thereof business development, M&A and other), not allocated to the two pillars. 39 Marketing Media

40 Appendix

41 New segment names allocation of assets unchanged Classified Ad Models Classifieds Media Paid Models News Media Marketing Models Marketing Media 41 Company presentation

42 Organic revenue development digital media yoy 9M/17 Q3/17 Q2/17 Q1/17 FY16 FY15 FY14 Digital Media 11.7% 13.6% 10.7% 10.7% 10.7% 9.2% 7.6% Classifieds Media 12.9% 15.1% 11.6% 12.0% 12.5% 12.9% 9.8% Jobs 17.5% 21.8% 14.2% 16.2% 17.6% 21.2% 13.5% Real Estate 11.6% 9.1% 12.4% 13.4% 6.3% 4.8% 6.0% General/Other 5.5% 9.3% 4.6% 2.7% 9.7% 4.0% 9.8% News Media 8.6% 10.2% 7.6% 7.9% 14.7% 3.2% 8.4% National 1.5% 3.9% -1.1% 1.8% 17.4% 0.8% 11.5% International 19.4% 18.2% 22.2% 18.0% 9.4% 8.2% 4.2% Marketing Media 11.8% 13.8% 11.3% 10.5% 7.5% 9.2% 6.2% Reach Based 13.5% 12.8% 11.6% 16.1% 15.6% 13.6% 7.8% Performance Based 11.0% 14.4% 11.1% 7.9% 4.2% 7.7% 5.3% 42 Company presentation

43 Adjusted eps up 16.1% yoy in 9M/17 in m 9M/17 9M/16 Q3/17 Q3/16 Net income % -48.5% yoy change Non-recurring effects Depreciation, amortization, and impairments of purchase price allocations Taxes attributable to these effects Adjusted net income % 19.5% yoy change Thereof attributable to non-controlling interests Adjusted net income attributable to shareholders of Axel Springer SE % 17.9% yoy change in Adjusted eps 1) yoy change 16.1% 17.9% 1) Based on weighted average number of shares outstanding in 9M/17:107.9m (9M/16:107.9m). 43 Company presentation

44 Net financial debt of 1.2bn (leverage of 1.9x) FCF up yoy as expected Net financial debt of 1,225.2m 1) in September 2017 (leverage 1.9x 2) ) Free cash flow (FCF) in m Future cash flows Strong free cash flow generation Net positive cash inflow of ~ 380m until 2020 from Berlin real estate transactions (purchase price of 330m for first sale and tax payments of 85m in Q4/17) Payments from sale of stake in Doğan TV of 171m expected in 2020/2022 9M/16 9M/17 9M/16 9M/17 FCF FCF excl. effects from headquarter real estate transactions 1) Excl. pension liabilities. 2) Based on Bloomberg consensus for EBITDA Company presentation

45 Purchase price of Berlin real estate transactions 755m positive effect on FCF of ~ 380m above expectations Purchase price for Berlin real estate 755m Remaining CAPEX for new Berlin building until 2020 ~ 260m Negative tax effects ~ 115m Resulting positive real estate effect on FCF ( ) ~ 380m Signing completed in July, 2017 Closing in Q4/17 (Axel- Springer-Passage, 330m purchase price, tax payments of 85m) and in Q4/19 (new building, 425m purchase price, tax payments ~30m ) Leaseback of Axel-Springer- Passage until ) Rent of ~ 8m p.a. after tax not included in FCF calculation 45 Company presentation

46 New international accounting standards impacting 2018 onwards IFRS 15 New standard regarding the recognition of revenues Mandatory as of Jan 2018 Complete overhaul of revenue recognition principles Impact on financial statements: Most important effect: AWIN to switch from gross to net revenue reporting Corresponding revenue decrease (no impact on EBITDA) IFRS 16 New standard regarding the accouting of leases Mandatory as of Jan 2019, early adoption possible as of Jan 2018 (Axel Springer will adopt early) 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: Balance sheet: Right-of-use, lease liability P&L: Depreciation and interest expenses instead of other operating expenses Corresponding EBITDA uplift 46 Company presentation

47 Introduction of IFRS 15: Estimated effects on Axel Springer in 2018 Revenues of Performance Marketing to decrease by approximately 75% No impact on EBITDA EBITDA margin for Performance Marketing to increase from ~ 5% to ~ 20% 47 Company presentation

48 Introduction of IFRS 16: Estimated effects on Axel Springer in 2018 EBITDA Positive effect of 60m to 65m 1) EBIT Net income Net debt Free cashflow Positive effect of 5m to 10m Low single-digit million euro negative effect Additional net debt of 235m to 255m Positive effect of 50m to 60m 2) 1) Thereof ~35% in News Media, ~30% in Classifieds Media, ~20% in Marketing Media, ~15% in Services/Holding. Including impact of new lease contract for Axel Springer-Passage (sold in Q4/17). 2) Due to consideration in cashflow for financing activities. 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 1) P&L t 1 t 2 t 3 Other operating expenses (EBITDA) P&L t 1 t 2 t 3 Depreciation Interest expenses 1) = Lease expenses (outside EBITDA) ) Repayment + Interest expense = Lease payments (50 monetary units) 49 Company presentation

50 Another strong quarter for Classifieds Strong revenue growth of 15.5% organically up by 12.9% in 9M/17 and 15.1% in Q3/17 Jobs classifieds again with strongest organic revenue growth (17.5% in 9M/17, 21.8% in Q3/17), driven by strong development in Continental Europe and growth picking up in the UK 11.6% organic growth in Real Estate in all three countries double-digit growth Classifieds highest profit contributor (58.1% of group EBITDA) EBITDA of 307.6m (+17.7%) 50 Company presentation

51 The future of our markets: shift towards online and constant growth continues Total Marketing Spend by Channel, F (m ) 2016 Germany 2020F Jobs 1, ,031 1,170 37% 15% 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 51 Classifieds Media

52 Online spend has grown significantly faster than total marketing spend... Online classified and other online marketing spend, (m ) Jobs Germany UK 320 5% 95% +16% 588 9% 91% 584 3% 97% +8% % 89% Real Estate France Germany Belgium Source: OC&C; Jobs incl. CV Database +6% % 67% % 66% % +7% % 24% 31% 25% 73% 69% 75% 76% CAGR Offline Mkt Spend 62 Online Mkt Spend 52 Classifieds Media

53 ...and 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% Sources: 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 53 Classifieds Media

54 Classifieds with very strong organic growth and high underlying margins Revenues Organic growth yoy M/2017 Jobs +13.5% +21.2% +17.6% +17.5% Real Estate +6.0% +4.8% +6.3% +11.6% General/Other +9.8% +4.0% +9.7% +5.5% Total classifieds +9.8% +12.9% +12.5% +12.9% EBITDA margin Margin M/2017 Jobs 45.9% 43.7% 42.9% 41.6% Real Estate 47.8% 46.4% 44.9% 50.9% General/Other 23.9% 30.7% 32.7% 33.2% Total classifieds 42.5% 40.5% 40.3% 41.3% 54 Classifieds Media

55 Jobs classifieds with organic growth of 17.5% in 9M/17 and high margin Jobs 45% Comments Reported revenue increase of 15.3% below organic growth of 17.5% due to negative FX 34% effects (mostly British pound) EBITDA share** in m 9M/17 yoy Q3/17 yoy Revenues % % organic growth* 17.5% 21.8% EBITDA % % Margin 41.6% -0.5pp 43.9% -1.2pp Continental European operations continue to be the growth driver with an excellent Q3/17, growth also improving in the UK EBITDA up 14.0% (adj. for cons. and FX effects +14.6%) * Adjusted for consolidation and FX effects. ** Of total classifieds subsegments EBITDA contributions 55 Classifieds Media

56 Jobs Marketing Spend 1 : Germany with double digit growth forecast in Online Classifieds (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 56

57 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 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 Recr. agency industry drives use of direct search products Trends show resilience of CV database to substitution by networks: StepStone has 21.8m CVs vs. 21m Linkedin profiles 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 Business model: Aggregation (traffic provision), passive search Market share: Low Consolidated markets Indeed blocked from crawling Medium Fragmented market Heavy investments by Indeed Low Consolidated markets Indeed blocked from crawling Part of online classifieds growth - share unknown 1) Share of professional networks of Online Recruitment market, 2016; Source: OC&C Strategy Consultants 57

58 SAON Group provides double digit growth rates and high margins Financial development by subgroup¹ (in m ) Revenue EBITDA SAON Group +11% +7% +15% +678% +30% +14% % +15% H1/16 H1/17 36% 20% 1 39% 36% 37% 8 34% 10 38% 30% % 27% 5 H1/16 37% 31% 6 H1/17 SAON Group acquired in late 2013, CareerJunction in 2015 Growth in 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 Reported EBITDA Reported margin Operational margin 58

59 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% 97% 96% 95% 95% 93% 78% 84% 88% 86% 87% 86% 88% 87% 81% 80% 82% 80% 64% 73% 74% 72% M/ M/ M/17 Large customers Overall Retention 1) All sub groups reported based on pro forma development 59

60 Real Estate classifieds with solid double-digit organic revenue growth Real Estate 35% Comments Reported revenue growth of 6.8% below strong organic growth (11.6%) due to consolidation effect in France (sale of software business in 2016) EBITDA share** in m 9M/17 yoy Q3/17 yoy Revenues % % organic growth* 11.6% 9.1% EBITDA % % Margin 50.9% 5.8pp 52.2% 6.0pp All assets with double-digit organic revenue growth in 9M/17 EBITDA up 20.6% (adj. for cons. and FX effects +21.9%) and margin up significantly, mainly driven by strong development at Immowelt * Adjusted for consolidation and FX effects. ** Of total classifieds subsegments EBITDA contributions 60 Classifieds Media

61 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 ) Property marketing spend (m ) +6% % Rental Sales +4% % 723 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 61

62 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 62

63 Immoweb: THE reference for property search Belgians have a brick in their stomach and when it comes to real estate, 8 out of 10 Belgians think of Immoweb Home ownership rate by country in %p 70% Unaided awareness questionnaire with 7.2k respondents in 09/ % x % 46% 6% 2% 1% Germany 1 Source: OC&C, Produpress study, Eurostat 1) Latest available 2014 France Belgium 63

64 Half of the Belgians visit Immoweb every month Half of the Belgian population visits us every month Unique browsers in Q vs. Belgians (age 20-79) in 01/2017, in m % 13% 20% 51% 8.1 leading to strong and highly engaged traffic on Immoweb Monthly audience statistics on Top4 RE portals in Q m 11% 13% 18% 104m min 8% 9% 14% % 70% Belgium Source: CIM, Statistics Belgium 1) Simplifying assumption: one browser equals one unique user (excl. app traffic) 2) Selected players (excl. app traffic) Visits Time spent 64

65 Immoweb s strong engine delivers strong performance unaided brand >75% awareness 1.6x more listings than #2 of all Belgians ~50% every month Listings Audience >50% of RE agents share of wallet of time spent on major RE >70% portals Source: Immoweb, Produpress, CIM, Statistics Belgium, OC&C 65

66 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% +13% In m CAGR +11% CAGR +5% +13% +15% % M/16 9M/ H1/16 H1/17 61% 64% 67% 70% 67% 66% Going forward, Immoweb expects mid to high single-digit revenue growth and to maintain their margins. Other Revenues Professional Revenues EBITDA EBITDA margin Revenues 66

67 Revenue and EBITDA increase in General/Other driven by consolidation effects General/Other 20% 25% Comments Revenue increase of 28.1% driven by consolidation effects (increasing organic growth throughout the year, reaching 9.3% in Q3/17) EBITDA share** in m 9M/17 yoy Q3/17 yoy Revenues % % organic growth* 5.5% 9.3% EBITDA % % Margin 33.2% -1.3pp 31.5% 2.3pp EBITDA up 23.3% (adj. for cons. and FX effects +7.9%), margin down yoy in 9M/17 due to investments in future growth and acquisition of lower-margin business in 2016 * Adjusted for consolidation and FX effects. ** Of total classifieds subsegments EBITDA contributions 67 Classifieds Media

68 @Leisure focuses on the supply/homeowner side of the market Homeowner Full-service >35k Inventory Secondary homes Other Fullservice provider Aggregator >500k 1 Inventory Guest Self-service >76k Inventory Primary homes 1)There will be some overlap between vacation rentals on Casamundo and on platforms 68

69 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 69

70 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 70

71 Full-service business outperforming main competitor Full-service: competitive position Full-service: Non financial KPI Inventory Europe (in k; present) Pro forma yearly booking value (in m ) CAGR (14-16) 1% 9% Full-service: Market trends a b c High fragmentation, but large players are rolling up mom & pop shops High-end full-service companies entering market with higher service levels and higher commission rate Technology investments to further unburden homeowners (microservices in cleaning and key services) s differentiators a b c Booking value Hotelplan (Interhome/Interchalet) Pro-forma booking (Belvilla/Dancenter) High end service offering for homeowners 2016 Scalable technology platform and financial capability for future acquisitions Strong brand in North-West Europe and high homeowner retention 71

72 Self-service with listings growth of 25% (09/ /2017) Self-service: competitive position # direct listings per year Germany (in k; Dec 2015) Self-service: Non financial KPI Total listings per September (in k) % / / / /2017 1) Management estimate on basis of scraping tool Self-service: Market trends a Shift towards commission based models s differentiators a Competitively priced due to low cost structure b Shift towards variable pricing depending on service level b Satisfied homeowners and high retention c Fast growing and relatively new urban segment c High matching capability and hence occupancy 72

73 @Leisure Group s buy and build strategy is paying off as the group continues to grow full year revenue and EBITDA Notes % 11 15% Revenue as reported x% EBITDA margin % 11 22% 15 H1/16 H1/17 EBITDA as reported Revenue: EBITDA: 2016 EBITDA margin includes temporary effects: 1. Dancenter consolidated only with low contributing months (Aug-Dec) given seasonality 2. Marketing investments 3. Product investments Outlook: further investments into marketing and product in 2017 and mid-term return to ~ 20% margin >1.5x in next 3-5 years >2.0x in next 3-5 years 73

74 Strong network effects provide Yad2 s customers with significant liquidity and reach Listings (in k, monthly avg. 2016) 1 Visits (in m, monthly average Q1/2017) 2 2nd Hand Real Estate Cars Jobs >3x 7.3 >19x >10x >25x Sources: 1) Company Information, 2) Similarweb, desktop & mobile traffic 74

75 Yad2 has the highest reach of internet users amongst its peer group UVs as % of internet users vs. peer group Israel France Germany 72% 47% 27% Sources: UN Population Census, Internet Society, Yad2 Company Information, Schibsted Investor Presentation, ebay Press Release latest available data 75

76 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 76 1 Organic Growth 2 3 Getting closer to the transaction Explore adjacent opportunities Commercial & luxury real estate Financing, loans, insurance products

77 Yad2 has delivered a constant track record of revenue growth Revenue Development 28% 25% 13% % 9% 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 # H1/16 H1/17 In the medium term, Yad2 is expecting high single-digit to low double-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 77

78 LaCentrale works with professionals that have a significant used car activity Professional listings Listings per professional 1 (in k, monthly average Q1/2017) 416 (in k, monthly average Q1/2017) % % Sources: Company Information 1) Professional ads divided by # of professionals on platform 78

79 Stable traffic and listings development versus next competitor Total listings Traffic development since Apr. 15 Listing development since Apr. 15 (in k, monthly average Q1/2017) (Index = 100) (Index = 100) 10.1m Q1 traffic 3.9m Private Professional Sources: Company Information 79

80 Carboat Media has benefited from constantly growing monetization Avg. ARPU growth 6%* 8, Customers ARPU (in ) * CAGR 09/13-09/17. Source: Company Information 80

81 Carboat Media developed its EBITDA positively since AS acquisition Revenues & EBITDA (in m ) CAGR +4% AS acquisition: July 2014 CAGR +8% +11% H1/16 H1/17 Revenues EBITDA Market professionalization and product innovation to drive mid-single digit revenue and EBITDA growth 81

82 News Media segment with outstanding Q3/17 News Media segment currently ahead of guidance (stable EBITDA) with EBITDA up 23.2% yoy in 9M/17 German advertising exceptionally strong in Q3/17 with an increase of 7.3% yoy strong digital growth and even print advertising slightly up (BILD special edition already in Q2/17) Continued strong development at Business Insider: Revenue growth still >50% in 9M/17 (40-45% for FY/17 expected) Portfolio optimization in Slovakia Acquisition of the leading car portal and one of leading real estate portals Sale of the leading newspaper and magazine portfolio Continued cost reduction 82 News Media

83 emarketer another milestone in the expansion into the English-speaking world Company profile High customer satisfaction and retention 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 Acquisition of ~93 of the shares, transaction closed in July 2016 Revenues to grow double-digit (CAGR), EBITDA margin to reach 40%+ until News Media

84 Pan-European news app upday - Expansion from six to 16 countries in 2017 Company profile International Expansion Strategic partnership to develop mobile news service exclusively for Samsung devices #1 news app in Germany Delivering up to 10% of publishers traffic Advertising for a targeted audience with non-intrusive formats Available on more than 10m devices in 2017 (i.a. S7, S8 and A-series) Countries per March 2017 Editorial offices per March 2017 Additional countries Additional editorial offices 84 News Media

85 Merger of AWIN and affilinet strengthens competitive position in Europe The leading European performance marketing network, present in 13 countries with 6,000 advertisers Financials (2016): revenues of 567.4m (-2% yoy reported, +4% yoy organic), EBITDA of 25.5m (+2% yoy) A leading European performance marketing network, present in 7 countries with 3,500 advertisers Financials (2016): revenues of 150.7m (+13% yoy), EBITDA of 4.9m (+19% yoy) Two leading performance marketing networks join forces to drive future growth and innovation 85 Company presentation

86 IPO envisaged after integration period Deal rationale & terms Goal: improve competitive position in Europe AWIN to acquire 100% of affilinet by way of capital increase against contribution in kind and issuance of new shares to United Internet 1 Future holding structure: 80% Axel Springer, 20% United Internet Transaction closed in October 2017 Axel Springer acquires remaining 47.5% of AWIN from Swisscom for 59.5m plus interest (2017e EBITDA multiple of 5.2x) pre-transaction by exercising existing call option Organic low double-digit EBITDA increase of AWIN group expected after closing of transaction IPO envisaged after period of integration 1) Transaction subject to antitrust approval 86 Company presentation

87 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