Roadshow Presentation May 2006 AXEL SPRINGER AG
EBITA/Net income from 1985 to 2005 1) EBITA and net income on all-time high after sucessful turnaround 400 338 300 287 243 2) 231 200 151 100 41 148 0 31 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 33-100 -200 EBITA Net Income -198 1) German GAAP (HGB) figures until 2002, IFRS since 2003 2) Excluding the Kirch settlement 2
Share Price and Ownership Structure Axel Springer's share price outperformed comparable indices Share Price (Jan 05 May 06) 1) Ownership Structure 135 7.0% 130 125 Axel Springer-Aktie Prime Media DJ EUROSTOXX Media +30% 9.8% 120 115 +16% 13.8% 50.0% + 10 shares 110 19.4% 105 +12% 100 95 90 03.01.2005 03.02.2005 03.03.2005 03.04.2005 03.05.2005 03.06.2005 03.07.2005 03.08.2005 03.09.2005 03.10.2005 03.11.2005 03.12.2005 03.01.2006 03.02.2006 03.03.2006 03.04.2006 03.05.2006 Axel Springer Gesellschaft für Publizistik Friede Springer Axel Springer AG Free Float Hellman & Friedman L.P. 1) Jan 05 = 100 3
Axel Springer company overview Company overview Newspapers Magazines & International Printing & Logistics Services / Holding Dr. Mathias Döpfner Chairman & CEO Dr. Andreas Wiele Rudolf Knepper Vice Chairman Steffen Naumann COO & CFO Ex. Sales 05 EUR1,442m EUR787m EUR81m EUR81m EBITA 05 EUR323m EUR50m Cost centre Cost centre Employees 3,559 3,351 2,292 964 Responsibilities BILD Group WELT Group Berlin Newspapers Hamburger Abendblatt BILD.T-Online.de Stepstone.de Immonet.de PR department Human Resources TV guides Women s Computer Automobile Men s Youth Financial Family Special Interest titles Internat. Publishing Offset printing Logistics and Distribution PIN AG Prinovis Finance and accounting Investor relations IT Real Estate Customer service Insurance services 4
Market Position Market leader in the German print media 17% Market Share by Adspend 1) 21% Market Share by Circulation 2) 10% 10% 8% 7% 5% 4% 8% 6% 5% 3% 3% Axel Springer G+J Burda Bauer WAZ Newspapers Magazines total Axel Bauer WAZ Burda Holtzbrinck G+J Springer 1) Source: AC Nielsen; Gross adspend, excluding classified ads, supplements and media advertising, 2 005 2) Source: IVW 2005, weighted market share taking into account d ifferent title frequencies 5
Title Reach Axel Springer reaches more than 36 million readers aged 14 and over Reach of Axel Springer titles 1) 56.6% 62.6% Position in other markets Stake of 12.0% in ProSiebenSat.1- Germany s largest Free to air TV channel family 27% stake in regional FTA TV channel HAMBURG 1 AS holds direct and indirect stakes in ten of Germany's fifteen largest radio stations 51.0% Strong position in the internet classifieds business Stepstone (49.9% stake), among top 3 immonet.de (74.9% stake), No. 2 Entire population Women Men AUTOBILD.de (100%), No. 3 1) Including participations 6
Newspapers Newspapers No. 1 in Germany German newspaper market (1) Core newspaper segments Market share (2) 7,1% 2,8% Newsstand papers No. 1 82% 21,6% Sunday newspapers No. 1 66% 68,4% Regional subscription papers Newsstand papers Sunday newspapers National subscription papers National quality papers Regional subscription papers (3) No. 3 13% No.1 (4) 58% No.1 (4) 23% (1) Excluding weekly newspapers according to BDZV/IVW average 2005 (2) By circulation annual average 2005 (3) Portfolio also includes Leipziger Volkszeitung, Ostseezeitung and others (4) Source: Huegel Statistik. Basis: Gross advertising volumes among all newspapers in Hamburg/Berlin 7
Magazines Germany s no. 2 magazine publisher with more than 50 titles and No. 1 or 2 positions in 10 out of 13 sub segments¹ TV listings Computer Cars Weekly No. 2 39% Fortnightly No. 3 17% All TV Guides No. 2 30% Women s Games No. 2 27% PC No. 1 38% Aud. / Vid. No. 1 50% Youth / Music / Lifestyle Cars No. 1 59% Finance Weekly No. 2 2) 27% Monthly No. 3 15% 1) By circulation 2) Without yellow press Music No. 1 56% Youth No. 1 33% Lifestyle No. 4 16% Source: IVW 2005, weighted weekly Business/Finance No. 2 18% 8
International International Business: Established broad base with substantial scope for further growth Country Product Position Poland 15 magazines 2 newspapers No. 2 publisher Hungary 21 magazines 10 newspapers No. 1 publisher Czech Republic 8 magazines No. 1 publisher car magazines Russia 4 magazines Revenues 2005: 384 EURm 16% of total revenues of Axel Springer 8 countries with more than 100 titles License business: > 30 titles Romania 1) France Spain Switzerland 13 magazines 4 magazines (1 title in JV) 11 magazines 8 magazines, 1 newspaper No. 2 publisher magazines No. 1 publisher computer magazines 1) 40% stake in Joint Venture 9
Printing & Logistics Printing & Logistics competence Offset Printing Logistics Ahrensburg Berlin-Spandau Essen-Kettwig Modernisation program for Offset plants of roughly 400 EURm finished no major new investments required in foreseeable future Rotogravure integrated in Joint Venture Prinovis with Arvato and Gruner+Jahr (25.1% stake) Press: Coordination, planning and steering of logistics activities: Logistics portfolio: - Marketing and Sales: AS Vertriebs GmbH (100%) that serves internal and external clients (>500 titles) - Domestic delivery: Buch und Presse (77%), VV Vertriebsvereinigung (49,5%), Presse Vertrieb Pfalz (32%), 7 East German wholesalers - Foreign delivery: Six distribution companies in Eastern Europe and Spain Mail: Coordination, planning and distribution of mail in metropolitan areas, assures direct access to readers Mailing Service Joint Venture PIN Group established with Holtzbrinck, WAZ and Rosalia (25% stake) 10
Headcount as at January 1st Successful turnaround Turnaround Program Headcount 1) Cost Reduction Consolidation of activities Headcount reductions Operational efficiency G&A Portfolio Reorganization Book Business Logistics (Overbruck) Titles with low profitability Launch of promising titles -32% 14,030 13,847 11,386 10,738 9,590 2001 2002 2003 2004 2005 2) 1) Without apprentices. 2) Without rotogravure 11
Current market situation Mixed development of print media market Gross advertising revenues magazines 1) Job classifieds regional subscr. papers 2) 845 +9.3% 924 16 +6.3% 17 Q1/05 Q1/06 Q1/05 Q1/06 Advertisements national newspapers 3) Circulation of daily newspapers 4) 6.602 +1.9% 6.730 25,374-1.9% 24,886 Q1/05 Q1/06 Q1/05 Q1/06 1) Source: Nielsen Media Research (excl. classifieds), in EURm, excl. trade public. 2) Source: ZMG gross advertising total in mill. mm. for Jan-Nov. 3) Source: Ulrich + Partner, adverstising in pages, excl. classifieds. 4) Source: IVW, 4th quarter, incl. Sunday papers, in thsd. copies. 12
Newspapers and Magazines Revenues in EURm 1) Growth in core business despite difficult market environment 2,084 2,017 +4% 2,096 +2% 2,165 Q1 2005/2006 1,997 +1% 518 +2% 529 2001 2002 2003 2004 2005 Q1/05 Q1/06 1) Figures until 2002 in HGB accounting standard, since 2003 in IFRS. Revenues of current newspapers and magazines portfolio 13
EBITA in EURm EBITA again on historic record level, EBITA margin of 14.1% in 2005 tops expectations EBITA margin in percent +39% 338 Q 1 3 Q1 2004/2005 2005/2006 +13% 93 1) 110 +95% 215 9.3% 243 10.0% 14.1% +13% 80,7 91,2 16.1% 33 +233% 4.0% 13.9% 1.2% 2001 2002 2003 2004 2005 Q1/05 Q1/06 1) German GAAP (HGB) figures for 2001-2002, since 2003 IFRS 2) Adjusted for Kirch settlement 14
EBITDA in EURm EBITDA margin reaches 17.3% EBITDA margin in percent 144 5.0% +49% 214 7.7% +36% 290 12.5% +17% 2001 2002 2003 2004 93 1) +22% 340 14.2% 414 17.3% 2005 Q 1 3 2004/2005 Q1 2005/2006 +6% 100,1 17.3% 106,2 18.7% Q1/05 Q1/06 1) German GAAP (HGB) figures for 2001 2003, since 2003 IFRS 15
Net income 1) in EURm Net income increased to EUR 231m 148 +56% 231 Q1 2005/2006 112 +32% +84% +41% 67,2 61 47,6 2001 2002 2003 2004 2005 Q1/05 Q1/06-198 1) German GAAP (HGB) figures for 2001-2002, since 2003 IFRS 16
Segment reporting - Newspapers Newspapers: Circulation stable, advertising revenues increasing Revenues in EURm (FY) Revenues in EURm (Q1) +3.1% 1,398 1,442 343,8 +1.2% 348,0 2004 2005 Q1/05 Q1/06 Thereof (2005/2004): Circulation: - 0.2% Advertising: + 4.5% Thereof (Q1-05/Q1-06): Circulation: - 0.2% Advertising: + 4.5% 17
Newspapers Newspapers: EBITA margin at > 20% for 5 quarters since Q1/05 EBITA in EURm/EBITA-Margin in % (FY) EBITA in EURm/EBITA-Margin in % (Q1) +29% 251 323 78 +7% 84 2004 2005 Q1/05 Q1/06 17.9% 22.4% 22.7% 24.0% 18
Segment reporting - Magazines Magazines: Revenue increase due to newly launched titles Revenues in EURm (FY) Revenues in EURm (Q1) +2% 771 787 188,4 +1.4% 191,1 2004 2005 Q1/05 Q1/06 Thereof (2005/2004): Circulation: + 2.1% Advertising: + 4.0% Thereof (Q1-06/Q1-05): Circulation: - 0.5% Advertising: + 6.9% 19
Magazines Magazines: EBITA increasing after launch of new titles EBITA in EURm/EBITA-Margin in % (FY) EBITA in EURm/EBITA-Margin in % (Q1) +400% 50 10 14 +21% 17 2004 2005 Q1/05 Q1/06 1.3% 6.3% 7.6% 9.0% 20
Strategy Profitability continues to dominate all strategic decisions Strategy Market leadership in German-language core business Creativity Internationalization Profitable growth Entrepreneurship Digitization Integrity Corporate values 21
Growth Strategy 5 growth drivers 1. Launch of magazines and newspapers in Germany 2. Launches and acquisitions abroad 3. Development or acquisition of digital businesses 4. Recovery of advertising market 5. Transforming acquisition 22
Strategy Strategic cornerstones consequently pursued New titles Profit improvement Market leadership in German core business Internationalization 23
Strategy DZIENNIK national launch in Poland on 18 April 2006 Titel in Deutsch: Tageszeitung. Polen, Europa, Welt 24
Strategy Online initiative of the newspaper group WELT/ BERLINER MORGENPOST 25
Strategy Digital business of Axel Springer Transfer of brands General interest portals Special interest portals Regional portals Cars Property Jobs Transfer of classifieds New business models Social Networks Directories Mobile TV TV Betting Gaming Internet TV Radio E-Commerce Downloads Blogs TV/Radio (EPG) Relevant print objects 26
Priorities in 2006 Chosen path consistently pursued with priorities set for 2006 1. New titles 2. Increase in profitability of newly launched titles 3. Continue to screen strategic market opportunities 27
Contact details Investor Relations Contact Claudia Thomé Head of Investor Relations Phone: +49 (0)30 2591 77421 Mobile: +49 (0)160 90445035 Email: claudia.thome@axelspringer.de Diana Grigoriev Investor Relations Manager Phone: +49 (0)30 2591 77420 Email: diana.grigoriev@axelspringer.de Axel Springer AG Axel-Springer-Str. 65 10888 Berlin / Germany Fax: +49 (0)30 2591 77422 28
Disclaimer This document, which has been issued by Axel Springer AG (the Company ), comprises the written materials/slides for a presentation of the management. 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. The contents of this document are to be kept strictly confidential. Some of the information has not been legally verified. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. 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 involve risks and uncertainties. The actual performance, results and timing of the business of the Company could differ materially from the performance, results and timing discussed in this document. This document does not constitute an offer to sell or a solicitation of an offer to purchase any securities of the Companyand neither this document nor any copy of it may be taken or transmitted into the United States or distributed, directly or indirectly, in the United States or to any US person. In addition, neither this document nor any copy of it may be taken or transmited into Canada or Australia or distributed or redistributed in Japan or to any resident thereof. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. 29