Company presentation. August Dr Julian Deutz, CFO xxx

Transcription

1 Company presentation Dr Julian Deutz, CFO xxx

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% 14% 12% 37% Classifieds Media 30% 58% News Media 47% Marketing Media Services / Holding Financials 2017 Outlook 2018 (reported) Outlook 2018 (organic 3 ) 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 H1/18 figures. 2) Negative EBITDA S/H allocated proportionally to operative segments. 3) 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 9.4% in H1/18 Revenues Advertising Revenues adj. EBITDA 69% 85% 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% in FY/17, 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 - Acquisition of minority stake in Purplebricks in UK - Acquisition of Universum (employer branding) - Sale of aufeminin; early sale of Doğan stake - Merger of Awin and affilinet with IPO as exit option 1) Includes changes from the adoption of IFRS 16 and corresponds to previous range of 205m - 225m. 5 Company presentation

6 What to expect in 2018? We will continue to deliver. Further growth in classifieds Deliver on mid-term stable EBITDA guidance for News Media Break-even at Business Insider in H2/18 Explore further potential from technology and data 6 Company presentation

7 Successful first half of the year adj. EBITDA up 11.7%, organic increase of 3.7% in m H1/18 yoy org. 1 Q2/18 yoy org. 1 Revenues 1, % 4.3% % 3.9% Advertising 1, % 7.0% % 6.3% Circulation % -4.8% % -4.2% Other % 5.8% % 5.1% 1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. adj. EBITDA % 3.7% % 1.1% Margin 22.7% 1.2pp 23.3% 0.6pp Comments Organic revenue increase of 4.3% and adj. EBITDA up by 3.7% organically Consolidation effects mainly from Logic-Immo and affilinet, deconsolidation of aufeminin 7 Company presentation

8 Adj. eps affected by phasing Guidance for FY 18 confirmed (mid to high single-digit % org. growth) in m H1/18 H1/17 Q2/18 Q2/17 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 (reported / organic) -2.1% / -0.7% -4.4% / -3.2% Non-recurring effects Depreciation / amortization, and impairments of PPA Taxes attributable to these effects Net income ) Based on weighted average number of shares outstanding in H1/18: 107.9m (H1/17: 107.9m). 11.7% 7.8% 8 Company presentation

9 Net financial debt higher because of IFRS 16 increase in FCF in line with expectations Net financial debt of 1,416.5m 1 in June 2018 (leverage 1.9x 2 ) Free cash flow (FCF) in m Impact of leasing liabilities on net financial debt Net financial debt includes leasing liabilities of 359.3m (PY: 0.4m), thereof 156.7m due to lease of Axel-Springer-Passage and high-rise headquarter in Berlin since January 1, 2018 Net financial debt less effects from leasing liabilities 1,057.2m Positive effects on cash flow going forward 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 ) H1/17 H1/18 H1/17 H1/18 FCF FCF excl. effects from headquarter real estate transactions 1) Excl. pension liabilities. 2) Based on Bloomberg consensus for adj. EBITDA Company presentation

10 Outlook 2018 unchanged on group level 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 IFRS 15 adoption. 10 Company presentation

11 Segment outlook 2018: Increase of organic revenue guidance for classifieds media Classifieds Media Reported Organic (adjusted for effects from the adoption of IFRS 16 as well as consolidation and FX effects) Revenues Double-digit % growth Increased to: Low double-digit % growth 1 adj. EBITDA Double-digit % growth High single-digit to low double-digit % growth News Media Marketing Media 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 2 High single-digit % growth 2 adj. EBITDA High single-digit % growth Low double-digit % growth Services/ Holding Revenues Mid single-digit % decline Mid single-digit % decline adj. EBITDA Low to mid single-digit % growth 3 Low to mid single-digit % growth 3 1) Previously: High single-digit to low double-digit % growth. 2) Revenue outlook based on 2017 revenues restated for negative effect of IFRS 15 adoption. 3) Improvement/smaller negative EBITDA. 11 Company presentation

12 Classifieds Media

13 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 Low double-digit % growth 3 EBITDA (adj.) in m Double-digit % growth EBITDA margin (adj.) 41.0% High single-digit to low double-digit % growth 1) Based on FY/17 figures. 2) Adj. for effects from IFRS 16, consolidation and FX effects. 3) Previously: High single-digit to low double-digit % growth. 13 Classifieds Media

14 M&A in Classifieds Media: Recent announcements Clear market leader in the UK in the new segment of transactional digital real estate platforms, also active in Australia, the USA and Canada April 2018: Purchase of 11.5 percent in Purplebricks through capital increase and purchase of secondary shares from existing holders; purchase price amounts to a total of GBP 125m, corresponding to a price per share of GBP 3.60 July 2018: Increase to 12.5 percent paying GBP 3.07 per each additional secondary share (total of GBP 9m) Listed on the London stock exchange since Dec Board seat for Axel Springer One of the world s leading employer branding specialists, based in Stockholm It helps 2,000 companies in more than 35 countries to monitor, define, develop and communicate their employer brand. Purchase price amounts to ~SEK 400m (~ 38m) Transaction closed in May Classifieds Media

15 Classifieds Media continues with low double-digit organic revenue growth in H1/18 in m H1/18 yoy org. 1 Q2/18 yoy org. 1 1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. Revenues % 11.3% % 11.2% Advertising % 11.7% % 11.7% Other 17.4 >100 % -12.3% 12.4 >100 % -17.4% adj. EBITDA % 4.9% % 4.0% Margin 38.2% -2.5pp 37.5% -3.4pp Comments Revenue increase due to continued strong organic growth (11.3%) as well as consolidation effects Adj. EBITDA increase of 11.7% due to organic increase of 4.9% as well as effects from IFRS 16 and consolidation effects Margin below the prior-year level due to planned investments into marketing and product for future growth as well as lower margins of newly consolidated companies 15 Classifieds Media

16 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 16 Classifieds Media

17 StepStone: Continued high organic revenue growth Operational update H1/18 Swedish employer branding specialist Universum acquired in Q2/18 Candidate delivery ahead of competition in nearly all areas The Partnership (Totaljobs and Jobsite) introduced in May 2018: Joint offerings incl. cross-promotion of jobs Main market Continental Europe with customer number up 9% yoy, retention rate remains on a high level at 88% (-1pp yoy) 1) Minor revenues recorded centrally and attributable to few operational entities (mainly Universum) are not presented since those are not recorded in operational subgroups 2) Combined adj. EBITDA of subgroups does not equal subsegment as central costs (mainly non-licensed product development costs) and a few entities (mainly Universum) are not recorded in operational subgroups. 3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. H1/18 Financials in m H1/18 H1/17 yoy organic 3) Revenues 1) % 18.4% Continental % 24.6% UK % 7.4% SAON Group % 9.9% EBITDA 2) % 2.1% Continental % 6.1% UK % -52.4% SAON Group % -4.0% Margin 35.3% 39.2% -3.9pp Continental 47.9% 54.9% -7.0pp UK 8.9% 14.9% -6.0pp SAON Group 28.3% 31.1% -2.8pp 17

18 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 18

19 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%) 19

20 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 20

21 StepStone Continental continues to provide strong organic growth Financial development by subgroup¹ (in m) Revenue EBITDA StepStone Continental +24% +27% +26% +24% +14% +27% +27% +16% % +26% % 71 58% 58% 59% 56% % 84 48% 92 H1/17 H1/ H1/17 H1/18 H1 margin impacted by investments in brand and traffic FY/18 margin (incl. IFRS 16) expected to be slightly below prior year 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, Universum (among others) is not allocated to one of the operational subgroups. Organic growth EBITDA Margin 21

22 Organic growth in the UK picking up again Financial development by subgroup¹ (in m) Revenue EBITDA StepStone UK +3% +7% +8% +11% +67% -8% +/-0% +29% % +5% % 24% % 38 20% 24 13% 16 15% 9 9% H1/17 H1/ H1/17 H1/18 TJG acquired early 2012, Jobsite late 2014 Introduction of The Partnership creates upside potential from more attractive offer to customers and also from synergy effects on the cost side (integrated platforms and overhead functions) 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, Universum (among others) is not allocated to one of the operational subgroups. Investments in future growth impact margin Organic growth EBITDA Margin 22

23 StepStone holds #1 positions in candidate delivery in most core markets Candidate Delivery¹ - StepStone Continental Germany Belgium Austria StepStone DE 14.9 StepStone BE 13.3 derstandard 19.7 Stellenanzeigen 5.9 Indeed 7.8 Karriere.at 17.4 Linkedin Monster Jobware Indeed Regiojobs Jobat Linkedin StepStone AT kurier.at Monster Meinestadt 3.5 Vacature 4.1 Indeed 3.9 Xing 3.0 Monster 3.5 Linkedin 1.7 1) Average # of applications per job ad. Source: TNS, figures are corrected for outliers. 23

24 #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 11.7 Careers Reed 11.6 NIJobs 8.1 Linkedin 29.3 CV Library 10.7 Linkedin 5.3 Monster 4.2 Facebook 3.4 Linkedin 2.8 1) Average # of applications per job ad. Source: TNS. 24

25 Increasing customer numbers drive StepStone s businesses Customer number by subgroup (k) 1 StepStone Continental StepStone UK SAON Group 2 LTM figures are pro forma including meinestadt.de, Turijobs and Ictjob Changed business focus of Jobsite after acquisition, low value contracts removed CAGR +11% % CAGR +3% % CAGR +5% % LTM Jun-17 LTM Jun LTM Jun-17 LTM Jun LTM Jun-17 LTM Jun-18 1) Customer count based on active contracts in a year except StepStone Germany, meinestadt.de and TJG where end customer (listing owners) are counted. 1 st time inclusion: Ictjob (Q3/17), meinestadt.de and Turijobs (both Q1/18). 2) Restated figures. Tecoloco companies now included in complete history. Figures subject to adjusted counting methodology. 25

26 SeLoger margin decline due to consolidation of Logic-Immo Operational update H1/18 H1/18 Financials Closing of Logic-Immo acquisition in Q1/18 ARPA (incl. verticals) increases by 6% yoy to 758 # of professional listings 1) on Seloger.com: 984k (Logic-Immo: 708k, pre deduplication) Unique users 2) of seloger.com up 2% to 5.9m, unique user of logic-immo +3% to 3.1m in m H1/18 H1/17 yoy org. 3) Revenues % 4.3% EBITDA % 6.9% Margin 47.1% 58.2% -11.1pp 1) Source: autobiz; monthly listings, Jan-May/18 average 2) Source: Médiametrie (Jan-May/18 vs Jan-May/17) 3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA 26

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/ /2018, France 1 1, Feb 12 May 18 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% H1/17 H1/ H1/17 H1/18 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 H1/18 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 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, Q1/ ) SeLoger indexed to keyword request Seloger for Île-de-France. 3) Logic-Immo indexed to keyword request Logic Immo for Provence-Alpes-Côte d Azur. 30

31 Immowelt: Margin significantly up at 40% Operational update H1/18 H1/18 Financials ARPU increases by 11% yoy to k DUO customers Visits 1) at 43.9m (+1% yoy) # of residential listings 1) at 205k (+6%) yoy in m H1/18 H1/17 yoy org. 2) Revenues % 7.3% EBITDA % 23.7% Margin 40.1% 33.7% 6.4pp 1) Source: company information; monthly visits/listings, H1 average 2) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA 31

32 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 Dec Mar Jun Sep Dec Mar Jun-18 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. 32

33 Strong #2 position for residential listings Declining listings due to tight German residential market Average number of residential monthly listings (k) 1 300k 200k -5% -9% IS24 100k IW 0k H1/17 H1/18 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. 33

34 Immowelt s ARPU increased steadily over last quarters Immowelt with strong ARPU growth but below main competitor ARPU ( /month) 1 ARPU ( /month) % IS24 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q4/17 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 34

35 Immowelt: Strong revenue growth with increasing EBITDA Substantial revenue growth Margin target of > 40% in 2019 Revenue (in m) EBITDA (% of revenue) +7.3% 54.3m 58.2m % 40% % >40% 20% Revenue EBITDA margin H1/17 H1/ F 2019F 35

36 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 36

37 News Media

38 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 (upday) Guidance for stable EBITDA (adj.) 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 38 News Media

39 Overview News Media National and International News Media National News Media International in m H1/18 yoy org. 1 Q2/18 yoy org. 1 H1/18 yoy org. 1 Q2/18 yoy org. 1 Revenues % -2.4% % -1.9% % 11.7% % 8.9% thereof digital % 8.4% % 9.8% % 16.8% % 14.7% digital share of revenues 25.8% 25.7% 62.8% 63.4% Advertising % -1.7% % -1.8% % 16.4% % 11.2% Circulation % -6.1% % -5.2% % 0.8% % 0.2% Other % 8.1% % 8.7% % 20.3% % 19.8% adj. EBITDA % -15.0% % -19.3% % 27.2% % 26.7% Margin 15.4% -1.2pp 16.4% -2.5pp 15.7% 4.0pp 17.9% 4.4pp 1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 39 News Media

40 News Media: Good first half for advertising both in National and International in m H1/18 yoy org. 1 Q2/18 yoy org. 1 Revenues % 1.2% % 0.9% thereof digital % 12.5% % 12.2% digital share of revenues 36.3% 36.2% Advertising % 4.1% % 2.3% Circulation % -4.7% % -4.1% Other % 11.3% % 11.7% adj. EBITDA % -6.6% % -10.0% Margin 15.5% 0.2pp 16.8% -0.7pp 1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. Comments Revenues up 0.9%, only minor effects from consolidation and FX 36.3% of revenues from digital activities Advertising revenue development strong in Q2/18 German print ad revenues underlying almost stable yoy Adj. EBITDA up 2.3% reported, driven mainly by effects from IFRS 16 (organically down 6.6%) 40 News Media

41 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 ), break-even excl. IFRS 16 effects targeted for H2/18, break-even incl. IFRS 16 effects achieved in H1/18 41 News Media

42 Monetizing content in digital: positive development Digital subscribers , ,571 80, , % June 2018 vs. June May-14 Dec-14 Jul-15 Feb-16 Sep-16 Apr-17 Nov-17 Jun-18 Source: IVW 42 News Media

43 Marketing Media

44 Marketing Media segment at a glance Overview Marketing Media #1 positions in all major marketing business models European market leader Awin in performance marketing merged with affilinet Reach Based Marketing Idealo Bonial (kaufda/retale) Finanzen.net Performance Marketing Awin Sale of aufeminin closed as of end of April 2018 (Main activities) 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. 44 Marketing Media

45 Overview Marketing Media Subsegments Reach Based Marketing Performance Marketing in m H1/18 yoy org. 1 Q2/18 yoy org. 1 H1/18 yoy org. 1 Q2/18 yoy org. 1 Revenues % -0.5% % 0.6% % 5.3% % 2.1% Advertising % -3.6% % -3.2% % 4.0% % 0.9% Other % 19.6% % 38.5% % 7.0% % 3.6% adj. EBITDA % 20.5% % 1.5% % -16.3% % -24.2% Margin 27.0% 6.5pp 30.6% 4.7pp 18.1% -0.1pp 18.9% -1.6pp 1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA includes costs of 4.2m in H1/18 and 4.3m in H1/17 (thereof business development, M&A and other), not allocated to the two pillars. 45 Marketing Media

46 Marketing Media with significant margin increase in m H1/18 yoy org. 1 Q2/18 yoy org. 1 1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. Revenues % 1.6% % 1.2% Advertising % -1.6% % -2.0% Other % 11.4% % 11.8% adj. EBITDA % 9.5% % -7.5% Margin 21.4% 3.7pp 23.2% 1.2pp Comments Revenues down yoy due to deconsolidation of aufeminin. Organic revenues up 1.6% in H1/18 yoy: Reach-based marketing slightly below H1/17 (-0.5%) due to US exit of Bonial in Q4/17, Performance Marketing with organic increase of 5.3% Adj. EBITDA up 15.7% (+9.5% organically). Reach Based Marketing EBITDA with strong organic increase of 20.5%, Performance Marketing with decline of 16.3% 46 Marketing Media

47 Sale of aufeminin closed 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) Closing of aufeminin sale as of end of April, ) Final purchase price of 291.5m includes customary interest rate payments since signing in December Marketing Media

48 Appendix

49 Organic revenue development digital media yoy H1/18 Q2/18 Q1/18 FY/17 FY16 FY15 FY14 Digital Media 9.4% 9.4% 9.5% 12.5% 10.7% 9.2% 7.6% Classifieds Media 11.3% 11.2% 11.3% 12.7% 12.5% 12.9% 9.8% Jobs 18.0% 17.2% 18.9% 17.0% 17.6% 21.2% 13.5% Real Estate 6.2% 6.0% 6.4% 10.8% 6.3% 4.8% 6.0% General/Other 4.2% 5.1% 3.4% 6.3% 9.7% 4.0% 9.8% News Media 12.5% 12.2% 12.8% 12.0% 14.7% 3.2% 8.4% National 8.4% 9.8% 6.9% 3.2% 17.4% 0.8% 11.5% International 16.8% 14.7% 19.2% 25.1% 9.4% 8.2% 4.2% Marketing Media 1.6% 1.2% 1.9% 12.4% 7.5% 9.2% 6.2% Reach Based -0.5% 0.6% -1.4% 12.0% 15.6% 13.6% 7.8% Performance Based 5.3% 2.1% 8.5% 12.7% 4.2% 7.7% 5.3% 49 Company presentation

50 Restructuring expenses in m H1/18 Q2/18 Q1/18 FY/17 Q4/17 Q3/17 Q2/17 Q1/17 Group Classifieds Media News Media Marketing Media Services/Holding Company presentation

51 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 51 Company presentation

52 As already announced, new international accounting standards implemented since 2018 IFRS 15 IFRS 16 Overview New standard regarding the recognition of revenues Mandatory as of Jan Complete overhaul of revenue recognition principles Revenues of Performance Marketing to decrease by approximately 75% FY/17 effect on Group revenues of 507.2m 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 Adj. EBITDA: 45m to 50m effect when comparing 2018 to 2017 (excluding lease contracts starting January 2018) 1 1) Thereof ~45% in News Media, ~35% in Classifieds Media, ~20% in Marketing Media. 52 Company presentation

53 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 53 Classifieds Media

54 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. 54 Classifieds Media

55 Classifieds with very strong organic growth and high underlying margins Revenues Organic growth yoy H1/2018 Jobs +21.2% +17.6% +17.0% +18.0% Real Estate +4.8% +6.3% +10.8% +6.2% General/Other +4.0% +9.7% +6.3% +4.2% Total classifieds +12.9% +12.5% +12.7% +11.3% EBITDA margin, adj. Margin H1/2018 Jobs 43,7% 42,9% 41.7% 35.5% Real Estate 46,4% 44,9% 50.4% 46.7% General/Other 30,7% 32,7% 32.0% 36.1% Total classifieds 40,5% 40,3% 41.0% 38.2% 55 Classifieds Media

56 Jobs classifieds with continued excellent organic growth of 18.0% in H1/18 Jobs in m H1/18 yoy org. 1 Q2/18 yoy org. 1 Revenues % 18.0% % 17.2% adj. EBITDA % 2.1% % 1.0% Margin 35.5% -3.8pp 36.2% -4.6pp Comments Reported revenue increase of 20.9% mainly driven by strong organic growth of 18.0% Continental European operations again the main driver for organic revenue growth (organic increase of 24.6%) Adj. EBITDA up 9.1% (2.1% organically) Margin down 3.8pp due to planned investments for future growth (marketing and product) 34% 1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment adj. EBITDA which includes costs of 5.6m in H1/18 and 4.3m in H1/17 (thereof business development, M&A and other), not allocated to the three subsegments. 56 Classifieds Media

57 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 57

58 SAON Group provides double digit organic growth rates and high margins Financial development by subgroup¹ (in m) SAON Group Revenue +10% +11% +15% +7% +30% +14% +11% +678% % +7% H1/17 H1/ EBITDA 37% 34% 30% 33% 31% 20% % H1/17 H1/18 50% 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, Universum (among others) is not allocated to one of the operational subgroups. Organic growth EBITDA Margin 58

59 High customer retention provides a strong base for growth for StepStone Customer Retention Rate (in %) 1 StepStone Continental StepStone UK 2 SAON Group 96% 97% 98% 98% 95% 95% 93% 90% 84% 88% 86% 87% 86% 88% 87% 88% 80% 82% 81% 77% 73% 74% 73% 73% LTM Jun LTM Jun LTM Jun-18 Large customers 1) All sub groups reported based on pro forma development. 2) Retention rates LTM June 2018 temporarily affected by launch of The Partnership which caused phasing of contract renewals from customers of both Totaljobs and Jobsite who decided to renew after expiry of both former contracts. Overall Retention 59

60 Real Estate classifieds with consolidation effects from Logic-Immo Real Estate in m H1/18 yoy org. 1 Q2/18 yoy org. 1 Revenues % 6.2% % 6.0% adj. EBITDA % 11.1% % 9.6% Margin 46.7% -3.5pp 45.6% -5.2pp Comments Reported revenue growth of 28.2% driven by consolidation effects from Logic-Immo (organic revenue increase 6.2%) Adj. EBITDA up 19.2% (+11.1% organically) Decline of reported margin due to integration of Logic-Immo (lower margin business) 1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment adj. EBITDA which includes costs of 5.6m in H1/18 and 4.3m in H1/17 (thereof business development, M&A and other), not allocated to the three subsegments. 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 ) +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 61

62 Immoweb with strong revenue growth and high margin Operational update H1/18 H1/18 Financials ARPA increases by 6% yoy to 544 # of listings 1) up by 5% yoy to 151k Real visitors 2) slightly down by 1% with a monthly average of 1.6m 2018 in m H1/18 H1/17 yoy org. 3) Revenues % 8.9% EBITDA % 8.0% Margin 64.8% 65.5% -0.7pp 1) Source: company information 2) Source: CIM 3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA 62

63 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 63

64 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% Germany 1 Source: OC&C, Produpress study, Eurostat 1) Latest available France Belgium 64

65 Immoweb outraces Belgian competition in market reach Immoweb attracts twice as many visitors than #2 competitor Average of monthly real visitors in H1/18 1 leading to strong and highly engaged traffic on Immoweb Average of monthly audience statistics on Top3 RE portals in H1/ m 19% 171m minutes 8% 10% 22% 2.0x 2.2x 83% 59% Source: CIM, Statistics Belgium. 1) Selected players (excl. app traffic). Visits Time spent 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% +6% in m CAGR +10% H1/17 H1/ H1/17 H1/18 61% 64% 67% 70% 67% 66% 65% Going forward, Immoweb expects mid to high single-digit revenue growth and to maintain their margins. Revenues EBITDA EBITDA margin 66

67 General/Other with slight improvement in organic growth in Q2/18 General/Other in m H1/18 yoy org. 1 Q2/18 yoy org. 1 Revenues % 4.2% % 5.1% adj. EBITDA % 3.3% % 4.3% Margin 36.1% 0.5pp 32.1% 0.4pp Comments Revenue increase of 4.9% (4.2% organic growth) Slow start to the year at Yad2 Meinestadt.de reallocated to Jobs classifieds (prior year numbers restated) Adj. EBITDA up 6.4% (+3.3% organically) 1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment adj. EBITDA which includes costs of 5.6m in H1/18 and 4.3m in H1/17 (thereof business development, M&A and other), not allocated to the three subsegments. 67 Classifieds Media

68 Car&Boat Media: Organic growth driven by ARPU increase Operational update H1/18 H1/18 Financials ARPU up by 10% yoy to 447 # of professional customers 1) slightly (-1%) below prior year at 8.5k # of professional listings 1) down by 2% yoy to 270k Unique visitors 2) up by 25% to 4.9m in m H1/18 H1/17 yoy org. 3) Revenues % 6.2% EBITDA % 7.2% Margin 48.4% 46.5% 1.8pp 1) Source: company information; monthly, H1/18 average 2) Source: Mediametrie (Jan-May/18 vs Jan-May/17); Limited comparability of Jan-May/18 figures to prior-year period due to new methodology regarding the measurement of mobile traffic introduced by Mediametrie in H1/18 3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA 68

69 LaCentrale works with professionals that have a significant used car activity Professional listings Listings per professional 1 (in k, monthly average H1/2018) (in k, monthly average H1/2018) % +60% 20 Sources: Company Information 1) Professional ads divided by # of professionals on platform. 69

70 Stable traffic and listings development versus next competitor Total listings Traffic development since Apr. 15 Listings development since Apr. 15 (in k, monthly average) 1 (Index = 100) (Index = 100) 12.1m 925 Traffic Jan-May m Private Professional 1) Listings are based on H1/18 figures Sources: Company Information. 70

71 Carboat Media has benefited from constantly growing monetization , Avg. ARPU growth 7%* Jan 2009 Jul 2013 Jun 2018 Monthly customers Monthly ARPU (in ) * CAGR 07/13-06/18. Source: Company Information. 71

72 Carboat Media developed its EBITDA positively since AS acquisition Revenues & EBITDA (in m) CAGR +4% 48.5 AS acquisition: July CAGR +14% % H1/17 H1/18 Revenues EBITDA Market professionalization and product innovation to drive mid-single digit revenue and EBITDA growth 72

73 Yad2 with headwind from FX and slower organic growth due to difficult real estate market Operational update H1/18 1) H1/18 Financials # of listings: 412.3k (-4% yoy) Unique visitors slightly up by 12% to 2.4m (H1/17: 2.7m) Visits down by 7% to 11.3m (H1/17: 12.1m) in m H1/18 H1/17 yoy org. 2) Revenues % 1.1% 1) Source: company information; monthly listings/uvs/visits 3) Adjusted for consolidation and FX effects 73

74 Strong network effects provide Yad2 s customers with significant liquidity and reach Listings (in k, monthly average H1/18) 1 Visits (in m, monthly average H1/2018) 2 2nd Hand Real Estate Cars Jobs >3x >23x >9x >26x Sources: 1) Company Information, 2) Similarweb, desktop & mobile traffic 74

75 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 75

76 Yad2 with slow start to the year and impacted by negative FX Revenue Development 28% 25% 13% % % 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 # H1/17 H1/18 Revenues in m Organic YoY growth Sources: Company Information, Drushim acquisition closed in Sept ) 2014 represents FY as AS acquisition closed in May. 76

77 @Leisure with slow start to the year Operational update H1/18 H1/18 Financials Full service (Belvilla, Land & Leisure): pro forma booking value 1) down by 10% yoy to 155m Self service (Traum-Ferienwohnungen): total listings 2) in Europe up 13% yoy to 83k in m H1/18 H1/17 yoy org. 3) Revenues % 2.7% EBITDA % 3.4% Margin 23.3% 21.6% 1.7pp 1) Source: company information, H1/18 vs H1/17 2) Source: company information, 06/17 vs. 06/18 3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA 77

78 @Leisure focuses on the supply/homeowner side of the market Homeowner Full-service >31k Inventory Secondary homes Other Fullservice provider Aggregator >500k 1 Inventory Guest Self-service >83k Inventory Primary homes 1) There will be some overlap between vacation rentals on Casamundo and on platforms. Source: Company information per Q2/18. 78

79 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 79

80 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 80

81 @Leisure with buy and build full year revenue and EBITDA % 11 15% 14 16% 19 22% 15 23% 17 Notes H1 with higher revenues and EBITDA (margin) due to seasonality (Q1 strongest quarter in vacation rentals) Outlook: Further investments into post-merger integration, data and product offerings in 2018, mid-term return to ~20% EBITDA margin H1/17 H1/18 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. 81

82 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) High customer satisfaction and retention Renewal Rate (in %) Recapture Rate (in %) by subscription type 1 by subscription type Limited Seat Open Access * Based on FY/15 revenues of $45.5m. 1) As of December 31 Source: Company information. 82 News Media

83 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

84 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 84 Marketing Media