Widening and digitizing our international footprint

Transcription

1 Widening and digitizing our international footprint Capital Markets Day Berlin, December 11, 2012 Ralph Büchi, President International Division

2 International business growing strongly International acquisitions and launches (selection) M ) 1) Russia Russia online Share of international revenues (in %) 21% 28% 34% M/2012 1) onet.pl and immoweb.be to be consolidated in Axel Springer accounts as of November Dec. 11, 2012 Widening and digitizing our international footprint

3 International print markets facing heavy challenges Axel Springer Print International revenues (in m) Advertising market outlook (in USDm) CEE Western Europe M/2011 9M/ Circulation revenues Other revenues Newspapers Magazines Advertising revenues Source: Company data; ZenithOptimedia 12/ Dec. 11, 2012 Widening and digitizing our international footprint

4 Keeping our print portfolio attractive I Continuous cost management + Three key success factors II Market leadership/ portfolio management III Attractive multimedia brands 4 Dec. 11, 2012 Widening and digitizing our international footprint

5 I Successful cost management absorbing 50% of the revenue decline in 2012 Cost management measures of segment Print International Cost saving measures Continuous cost benchmarking within international activities Roll-out of newsroom concepts to increase output and cost efficiency Optimization of marketing and production costs Closing of printing plants Outsourcing of services/re-negotiations of service contracts Reduction of license fees Financial effects Revenues decline 9M/2012 vs 9M/2011 EBITDA decline 9M/2012 vs 9M/ m m 5 Dec. 11, 2012 Widening and digitizing our international footprint

6 I Cost benchmarking: A major project has been started in the biggest JV country Poland in 2011 Net effects on costs so far Annualized FX adjusted: Total overhead costs (in thousands) -13.1% 1. Overhead savings 2. Editorial savings Online productivity 4. Sales productivity Poland Total effect: + 6 m 6 Dec. 11, 2012 Widening and digitizing our international footprint

7 I Cost management: Newsroom integration in the Czech Republic, Step I Newsroom integration Results so far Output in editorial pages +13% Productivity increase +24% Editorial costs -14% 7 Dec. 11, 2012 Widening and digitizing our international footprint

8 II Market leadership: JV with Ringier in Central Eastern Europe (PL, CZ, SK, SB) 1) Indexed revenues before and after JV creation 2) Success drivers Axel Springer (PL, CZ) before JV Print revenues 2% 266 7% 2011 After JV 9M/2012 3) 1) PL Poland, CZ Czech Republic, SK Slovakia, SB Serbia; 2) Indexed, 2009 = 100; 3) Including ONET on a pro-forma basis % Share of digital revenues as of total revenues Print leader in four markets Digital revenue share has reached 25% within three years Digital leader in three out of four markets One of the most profitable media companies in most of its markets 8 Dec. 11, 2012 Widening and digitizing our international footprint

9 II Market leadership: Outperforming market trends Print advertising market CAGR market CAGR JV company Market share JV company Poland -15.9% -12.3% 10.3% 12.2% Czech Republic -14.8% -11.8% 19.4% 22.4% Slovakia -19.7% -13.4% 23.9% 32.3% -10.5% -2.2% 28.9% 41.0% Serbia Source: PL: Zenithoptimedia for , Company data for 2012, SB: Company data, CZ and SK: Group M 9 Dec. 11, 2012 Widening and digitizing our international footprint

10 II NEWSWEEK in Poland: from no. 4 to no.1 within one year Average sold circulation (in kex) 145 CAGR +25% % -4% -5% Source: Polish bureau of circulation audit 0 May 2011 Jan 2012 July Dec. 11, 2012 Widening and digitizing our international footprint

11 III Multimedia brands: BLESK mobil in the Czech Republic as a successful case BLESK market leadership BLESK mobil Best selling and most popular national daily in the Czech Republic Readership: 1.2 mln readers Circulation (in thousands): % First virtual operator in the Czech Republic; launched in October 2012 with Telefonica O2 (TEF) Business model: revenue share and commissions from SIM card activation Free access to BLESK.CZ; ISPORT.CZ; AUTO.CZ; BLESKMOBIL.CZ Activated customers so far > 60,000 Learning and know-how transfer from BILD mobil Source: Median.cz, 2Q2/2012; ABC September Dec. 11, 2012 Widening and digitizing our international footprint

12 Digital revenue share increased by over four times within five years International revenues development (in m) Results Total revenues CAGR % 537 Digital revenues CAGR % 49% 55% 12% M/2012 International revenues Share of digital revenues as of total revenues 12 Dec. 11, 2012 Widening and digitizing our international footprint

13 The roadmap to successful digitization I Roll-out of successful business models Two ways to develop international digitization II Building digital market leadership by new and add-on investments 13 Dec. 11, 2012 Widening and digitizing our international footprint

14 I Roll-out of successful business models: aufeminin.com From french focus to no.1 women s portal in eight European countries Revenues development (in m) Market position in Europe 47 CAGR +20% 47% 37 # % #1 #1 16% #1 #1 #1 84% 53% 48% #1 #1 FY2007 FY2011 Revenues International 9M/2012 Revenues France Own office No office Market position 14 Dec. 11, 2012 Widening and digitizing our international footprint

15 II Add-on investments as a second vehicle for business growth: aufeminin.com Acquisition June 2008 Acquisition August 2011 Leading portal about health in German-speaking countries with 2.4 m unique users Launch 1997; acquisition of 100% stake In April 2012 start of ONMEDA internationalization with launch of ONMEDA in Spain White-label health channel on beobachter.ch in Switzerland started in July 2012 The acquisition supported AUFEMININ international growth and significantly contributed to revenues increase Revenue streams: advertising, content licencing Leading British parental website with 1.5 m unique users Launch 2000; acquisition of 100% stake AUFEMININ.COM is already present in the UK with SOFEMININE.CO.UK The acquisition reinforced AUFEMININ position as the leading website for women Revenue streams: advertising, content, government, affiliate programme Strengthening of Pan-European advertising campaigns 15 Dec. 11, 2012 Widening and digitizing our international footprint

16 III Building digital market leadership in key markets: onet.pl 14.5 Market position Screenshot x more visits 13.0 Real users (m, monthly) Note: Size of circles describes number of page views 1.3x more users 170 Visits (m, monthly) Strategic fit and synergies 75% - Ringier Axel Springer Media 25% - TVN Purchase price: 215 m Biggest news and entertainment portal in Poland with a reach of 77% High profitability Many add on services: , dating and gaming Strong own R&D department (DreamLab) Crossmedia marketing with RAS Polska and TVN 16 Dec. 11, 2012 Widening and digitizing our international footprint

17 Strong partnerships as additional success driver Axel Springer share Partner Industry 70.0% Private Equity 75% (RASM JV share) Media 52.5% Advertising 17 Dec. 11, 2012 Widening and digitizing our international footprint

18 Last but not least: our first footprints in Brazil ( by kaufda ) So far 60 clients, e.g. Groupon, TAM airlines and Kanui Actual Number of publishers: 20,000 Launch December 2011 Launch July 2012 Start as a JV with two local enterpreneurs, kaufda (56%) Market leader in Brazil since launch; no. 1 in itunes free apps In discussion and pilot phases with all major retailers in Brazil 18 Dec. 11, 2012 Widening and digitizing our international footprint