Burda... Annual Report 2013 Burda Media Hubert Shaping the Media Content 36 Learns from His 6 CEO Dr

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Hubert Burda Media Annual Report 2013 Burda... Annual Report 2013 Burda Media Hubert shaping the media Content 36 Learns from his 6 CEO Dr. Kallen on the challenges of the media transformation mistakes: Fabrizio D’Angelo

10 melvin ang shapes the future Burda’s lifestyle brands from Singapore reflect Asian high society’s attitude toward life. Publisher Melvin Ang sees great growth opportunities for his media

18 sebastian matthes explores uncharted waters The Editor-in-Chief of the German Huffington Post and his team link blogs, social media and news in a revolutionary new type of news portal

26 Kerstin Schneider embodies passion for fashion German Elle celebrated its 25th anniversary in 2013 – and is still setting new standards. Fashion Director Kerstin Schneider shares responsibility for the magazine’s success

36 fabrizio d’angelo learns from his mistakes The CEO of BurdaInternational explains why you can’t be afraid of mistakes if you want to 78 shape the media landscape of the future Big responsibility: Katharina Zwanzig 44 The Burda School of Journalism is teaching for tomorrow In Offenburg, students learn to research, write, blog, film, program and tweet – and the 26 best way to market themselves and their stories in the future Loves fashion: Kerstin Schneider 50 kjeld peters loves technology The Technical Director of Elitepartner uses the algorithm of love to help 4 million singles find happiness for life

56 Alexandra Schiel connects people Alexandra Schiel and the DLD team are looking for smart people – and the latest Internet trends – from all over the world for the innovation conference

66 Diana Knodel develops new projects The Product Manager at Xing takes the initiative to get more women interested 56 in programming Meeting of the global 72 Holger Albrecht shows his dedication digital elite: DLD in New York The man from IT Support shows children and adolescents living in difficult circumstances how to use computers

10 78 katharina zwanzig in charge Shapes the future: Melvin Ang The Treasury Director is responsible for Burda’s liquidity. Without her support, many of the company’s projects would go nowhere

84 The Burda alphabet 94 Financial Statements 2013 Burda: a company for entrepreneurs

he year 2013 was another good year for see themselves as “entrepreneurs within the company.” Burda. Our company continued to grow, while As members of the Executive Board at Burda, we feel our T remaining profitable. We were able to finance most crucial responsibility is to be a home for the most- our growth with our own resources, expand and stabilize talented entrepreneurs, and give them the opportunity to our existing businesses, and tap into new business fields. invent the future together with us. But 2013 was also a year of growing challenges: the pace On behalf of my fellow Board members, I would like to at which the consumer Internet is changing the media in- thank all of our 10,000 employees for their hard work. We dustry has accelerated significantly yet again. New tech- all share the responsibility for ensuring that our company nologies are transforming everything with increasing mo- takes advantage of the great opportunities offered by dig- mentum, changing every familiar consumer communica- italization and actively shapes change, and that Burda re- tion channel and enabling new relationships with our cus- mains what it is: a vibrant, growing and profitable media tomers. Digitalization is fundamentally changing our world company of the 21st century. – and will continue to do so. Even during this phase of change we will continue to grow and remain profitable, because Burda will maintain its “We would like to intro- course, developing and implementing successful new products for its consumers – and actively shaping the fu- duce 10 Burda role mod- ture of the media. We will succeed with innovative technology and content in media products that inspire, enter- els from different divi- tain, add practical value and play an important role in the lives of our customers. sions and countries who Our goal is to support our customers, users and readers advance our company.” with our media in their pursuit of happiness. If we at Burda succeed in enriching and improving people’s lives – regardless of the technological platform – then we will be as financially successful as ever over the long term. Dr. Paul-Bernhard Kallen, CEO Our company is in a strong position to tackle this task: Burda consists of 95 successful individual companies, in which 10,000 employees give their best every day to create excellent products. Because their work, ideas and attitudes set the scene for all future successes, we would like to introduce 10 Burda role models from different divisions and countries in this annual report – talented, committed, highly qualified employees who advance our company on all levels. These are colleagues who take on responsibility – for themselves and our company – and have the courage to take action. They have the strong will to help shape our future and know that this can only succeed if we understand, utilize and actively develop the technologies – both traditional and new – on which our businesses are based. Dr. Paul-Bernhard Kallen These are people who intentionally take risks and learn from their mistakes for the future. They are employees The CEO of Hubert Burda Media Holding KG joined the who take advantage of the excellent opportunities to de- company in 1996 as Managing Director. Dr. Kallen was ap- pointed Member of the Executive Board responsible for velop and drive new projects throughout expansive net- technology in 1999. The political economist has been at works here at Burda. the helm of the Group since 2010. They are colleagues who perform their work not only with expertise, but also with passion – in short, people who

BURDA Annual Report 7 The Executive Board of Hubert Burda Media

(Left to right) Holger Eckstein, Board Member Finance; Dr. Paul-Bernhard Kallen, Chief Executive Officer; Philipp Welte, Board Member Publishing; Stefan Winners, Board Member Digital Melvin Ang shapes the future

In highest society Burda’s exclusive Singaporean lifestyle brands reflect Asian high society’s attitude toward life. Their love of luxury shows publisher Melvin Ang that the growth of his media is far from exhausted quarters. Most of the 68 employees work in separate cubicles, and Melvin “ We have no natural Ang’s office is unpretentious as well. “I’m a practical person,” he explains. resources in Singapore, He has enough glamour outside the but many hard-working office – he works here. With a reso- immigrants.” lute grip, he takes the different issues of Prestige Singapore, Malaysia, Indonesia, Thailand, Hong Kong and Man of glamour: Taiwan off the shelf and spreads Melvin Ang has been publisher of the them out. The most conspicuous luxury magazine decoration here is a small altar – Bud- Prestige for 14 years dha flanked by two waving porcelain cats for good luck. For devout Bud- dhists, religion is an important support in life. It gave Ang his respectful, open management style that his employees value so much.

Rising to the top, in record time Melvin Ang is slender, not especially tall, yet his self-confidence is huge. “I was born in the Chinese year of the Dragon, under the sign of the lion in the Western zodiac. In short: a born leader.” That’s how he introduces himself – and laughs. He is ambitious, and therefore a typical Singaporean, he explains. “We have no natural resources. But thanks to the hard-

working immigrants – my father came shapes the future Ang Melvin from China – more millionaires live here today than in Hong Kong.” After finishing university, Melvin first

Lunch meeting with advertising customers at the venerable St. Regis Hotel tried to work at his father’s tea and coffee company, but there were too many relatives who wanted to have a Tuesday evening in April, 9 high-society women from this up- doesn’t look a day older, perhaps 36 say. So, he began working at the Sin- o’clock. In Singapore, it’s and-coming city. He converses ani- at the most. Ang laughs – he likes gapore offshoot of the society maga- still 28°C hours after sun- matedly with his guests. “It’s wonder- that. But he is more interested in oth- zine, “Tatler”. There, he rose through Adown. It has been a long day for Mel- ful to see you, Grace. How was New er topics. He wants to know every- the ranks in record time from an ad- vin Ang, with a number of conferenc- York? How is the better half doing?” thing about their favorite brands and vertising employee to Marketing es and appointments, but if he is In the background, skyscrapers – a destinations as well as their hus- Chief – and stayed 10 years. “But for tired, he certainly doesn’t show it. He symbol of the wealth in this metropo- bands’ favorite toys. me, something was always missing at stands on the giant balcony of the lis of millions – illuminate the night, Ang is collecting material for the so- ‘Tatler’,” he says. “The content was presidential suite at the Fullerton Ho- their lights reflected in the Singapore ciety pages of his magazine. He men- too far removed from the world of the tel and smiles, wearing a flawlessly River. Ang and the ladies have known tally writes memos that he will trans- wealthy people who are our core tar- matched evening outfit: white jeans, each other for some time. For them, fer to paper in his office tomorrow to get group.” So he decided to launch matching shirt, form-fitting green the wiry Chinese man is like a friend. be sure not to forget anything. his own magazine. sport coat and snakeskin shoes. Giggling, they ask him his age. He will The editorial staff of Prestige, Singa- Ann Lee, who holds the title Associ- The publisher of the luxury magazine be 50 this year. “But on the inside, I’m pore’s most successful society mag- ate Publisher and has been Ang’s Prestige has invited over several 35.” The ladies think so, too. He azine, resides in relatively modest right hand for decades, tells with a

12 BURDA Annual Report BURDA Annual Report 13 smile how Ang called together his most trusted colleagues before sub- mitting his resignation: “He wanted to know from us if we would like to start a new chapter with him. Mind you, that’s without saying what it was all about.” They all followed him – and are still there. In addition to the lavish fashion spreads for men and women, stories about the richest members of Singa- porean society are the core of Pres- tige. Asians, especially the Chinese, love to look up to successful people. Status is everything, which is why of the 15,000 issues printed, a few thou- sand free copies are given to high- status readers from high society.

Society VIPs as models Prestige quickly became a big success and expanded to Indonesia, Malaysia, Thailand and Hong Kong. Burda took over the publishing company two years ago; since then, the brand is also represented in Taiwan. The external editorial offices can take

on content, but do not have to. Boss- shapes the future Ang Melvin es need to decide for themselves how they will be most successful. The most effective means of securing reader loyalty was Melvin Ang’s idea of exclusively using true beauties from Singapore’s society as models. The wealthy city has plenty of them – and all of them work hard to grace the cover of Prestige. Or at least the section where celebrities show their Instagram photos. Among the engaged daughters of millionaires, it’s considered chic to be photographed by Prestige while shopping for wedding gowns in Paris or honeymooning in the Maldives. For example, the hot newly engaged couple Van Ness Wu and Arissa Cheo smile from the cover There are many high-end of the May issue. He is a well-known shopping malls offering singer; she is an “it” girl and comes luxury brands in Singapore. Status plays from a top-tier family. a major role in Asia. Melvin Ang’s most important market- lated from Chinese, PIN means “re- ing tool, the Prestige Ball, works in a fined lifestyle.” Ang launched the Ang decides with similar fashion. He celebrated the magazine just a year ago and sees a Editor-in-Chief Dylan first issue of the luxury magazine 14 great deal of potential in the Chinese- Boey (r.) which members of Singapore’s years ago with a spectacular ball, speaking market. high society will grace which he repeats every year in Sep- their cover of Prestige tember. Only those who are person- Man of substance ally invited by the editorial staff may For a few years now, the inexhaust- attend. Ang’s exclusive address book ible bundle of energy known as Mel- contains the names of 8,000 men vin Ang has also been publishing the and women separated into catego- men’s magazine, August Man. Here, ries A, B or C, depending on the size as an adjective, “august” essentially of their spending habits. But only the stands for “substance.” The maga- crème de la crème should appear at zine targets well-groomed, fashion- the ball, so the number of guests is conscious men who enjoy an exclu- limited to 500. To increase the appeal sive, luxurious lifestyle – of which for guests even further, every year there are many in Asia’s high society. Ang and the Prestige fashion director One of these is Dylan Boey, Editor-in- Ang conversing with society ladies crown the 10 best-dressed socialites Chief of Prestige – a flamboyant as belles of the ball. The city’s most young personality in a royal-blue vel- noted jewelers gladly drape the la- vet sport coat. In the editorial meet- dies in jewels free of charge. The ing, he shows Ang three boards with chances that the beautiful belle’s pages from the next issue. For the husband will open up his wallet after- cover he is planning a group photo of ward are high. five very successful men ranging in Prestige has become much more age from mid-20s to late 50s – an oil

than a magazine – it is a successful magnate with a penchant for expen- shapes the future Ang Melvin media brand. That’s why in addition sive watches, a neurosurgeon, the to the ball, Melvin Ang’s team also president of the Marina Club, an art- regularly hosts cocktail parties for ist and a venture capitalist. An anni- luxury brands such as Bulgari or versary issue will come out in Sep- Cartier. One member of the team is tember that is already brimming with responsible solely for organizing ads. “I had to console Laura, the orig- these exclusive events. inal cover girl, once again,” explains The company also publishes suc- Boey. Regardless of whom Prestige cessful customer magazines for sev- would select from Singapore’s high eral major shopping centers. And at society for the cover, many would be Marina Bay Sands, Singapore’s larg- offended that they weren’t chosen. est resort, with an attached shopping That’s why they made an exception mall, Melvin Ang organizes an autumn this time and hired a professional watch exhibition with the most impor- model. tant representatives from the local It’s already late again. Melvin Ang Haute Horlogerie. Ang’s team en- needs to move on, he still has impor- sures that enough high-income cus- tant appointments this evening with tomers will attend. A few premium the regional directors of Bulgari, readers of PIN, the Chinese-language Cartier and Cortina. Going to bed offshoot of Prestige, will fly to Singa- early is not an option. He has much pore just for the event. Loosely trans- too much planned for that.

16 BURDA Annual Report BURDA Annual Report 17 Sebastian Matthes EXPLORES Uncharted Waters

News revolution The Huffington Post is the most exciting innovation in German online journalism. Editor-in-Chief Sebastian Matthes and team link blogs, social media and news on the groundbreaking news portal nyone looking for Sebas- tian Matthes in his office is “I think that the digital A bound to fail. The only sign transformation offers of The Huffington Post Editor-in- Chief’s presence is a laptop case ly- journalists unbelievable ing open and a jacket hanging on the opportunities – and we back of a chair. should take them.” Hardly surprising, since Matthes prefers to work on the front line. You’ll find him at the news desk, looking through news reports and writing headlines with the news editor, at editorial conferences, or on the road, going to meetings and speaking at panel discussions. For more than seven months, the 36-year-old has

Once 36-year-old Sebastian Matthes blogged about the digital transformation – now he’s one of those driving it

been in charge of the German edition and, with an editorial team, wrote of The Huffington Post, the most ex- original reports and commentaries – citing online innovation in German supplemented by input from many Huffington Post staff work journalism. He’s so busy that there’s bloggers on a large range of topics. from 6 a.m. until late night Sebastian Matthes EXPLORES Uncharted Waters Uncharted EXPLORES Sebastian Matthes no time left to sit in his office. Matthes The concept works: in 2012, “HuffPo” considers Internet journalism “a con- (as it’s informally known) became test of ideas and opinions.” It would the first commercial online medium be hard to describe The Huffington to be presented with a Pulitzer Prize. Post’s concept more accurately. In pre-Internet days, journalism was Reaching a gigantic audience structured like a classroom: someone Since October 2013, Arianna spoke up in front and many listened. Huffington and the Tomorrow Focus US nonfiction writer and journalist AG have been working closely to- Arianna Huffington understood early gether on the German edition of The on that Internet users were looking Huffington Post. This has involved for an equal voice. That’s why, in regular visits by the founder to the 2005, she founded The Huffington German editorial staff in Munich. Post, her news and debate website, in Before Matthes wound up at The the USA. On it she linked to other Huffington Post, he had worked as a news sources, offered a platform to business reporter. After studying well-known columnists (e.g., Richard economics and politics, he became Dawkins, John Cusack, Alicia Keys) an early victim of the Internet virus:

20 BURDA Annual Report BURDA Annual Report 21 long before most of his colleagues, he had a blog and reported on start- ups. He has not lost his original enthusiasm: “I think that the digital transformation offers journalists unbelievable opportunities – and we should take them. We try out new formats and new forms of storytelling and let our users decide whether they like each innovation or not. This makes us part of a continuous learning and improvement process.”

Dual-engine hybrid He explains the editorial concept with an image: “The Huffington Post is a hybrid sports car with two engines. On one hand, it’s an innovative news website with a global network. Some 700 professional staff reporters work there. On the other, it’s a platform on which experts in all subject areas write texts that we make available to an audience they would never have been able to reach before.” By now, more than 1,000 German bloggers use The Huffington Post. One of them is Hamburg journalist Eric Hegmann. Since the launch, he has blogged almost weekly for the site. “Many of my posts do well in social media, with Sebastian Matthes EXPLORES Uncharted Waters Uncharted EXPLORES Sebastian Matthes hundreds of likes and shares,” says Hegmann. Even if he is not paid for his posting, he enjoys “trying out topics and how to treat them on such a far-reaching platform. And if I sell a few more books as a result, of course I’m glad.” In his experience, his commentary on dating sites and relationships catches on quite well. “When I posted about ‘mingles,’ a new form of relationship somewhere between single and in a relationship, I was inter- viewed by dpa (German Press Agen- cy), and the interview was published in lots of daily newspapers a few days Voices of a new later. I get more and more requests generation: the staff for interviews related to my Huffing- prefers to address younger readers on ton Post contributions.” their own terms In just a few months, the German that wants to experiment and take count first: “I think Twitter is the most Huffington Post was able to acquire part in helping to shape content.” important news source for me, next prominent bloggers, such as Germa- There is, however, a clear demarca- to The Huffington Post – just as rele- ny’s Defense Minister Ursula von der tion from Focus Online. “Our target vant as dpa and Reuters. We know Leyen, tennis legend Boris Becker group is different,” she explains. “We that our users spend a lot of their and manager René Obermann. Many consider ourselves Focus Online’s time on social media. That is where authors are sourced by the former cheeky little sister. In other words, we inform them, listen to them and ZDF host Cherno Jobatey. He func- our audience is somewhat younger, are engaged in a constant exchange tions as editorial director and anchor somewhat more female – and many with them. We then bring debates on of the German Huffington Post, pro- of them are just starting their careers. social media back to The Huffington vides his own posts, and, like Sebas- And that is reflected in what we talk Post. That is how we are helping to tian Matthes, acts as a public face for the website. News and blogs are on an equal foot- ing at HuffPo. On the left side are the blogs, and in the middle is the news column with politics and business. Digital natives: a start-up mentality is driving the editorial team – they are willing to experiment The right-hand column is kept for softer topics: entertainment, lifestyle and advice. Social media first: many The concept seems to be working: relevant topics are just a few months after its launch, the found by the editors in social networks, which German Huffington Post proudly re- they follow attentively ported some 9.58 million visits (according to German media monitor IVW, March 2014) – making it number 15 among all German online news offerings. Matthes hadn’t expected to land in the Top 20 so fast: “We started very successfully and are growing Sebastian Matthes EXPLORES Uncharted Waters Uncharted EXPLORES Sebastian Matthes faster than planned.” In doing so, The Huffington Post can also build on the experience of the

Tomorrow Focus AG. That the edito- A success story is being written: with 9.58 million visits as of March 2014, The Huffington Post ranked 15th among rial staff of The Huffington Post and Germany’s online news offerings Focus Online are next door to each other is no accident: they support and inform each other daily, and some of The Huffington Post staff about.” With a small team, The Huff- shape the media revolution in Voice of a new generation Matthes sees it, traditional journalism used to work for Focus Online. Danu- ington Post does not have a 24-hour Germany.” That’s why The Huffington The secret to their success in getting is still dominant on the German media ta Szarek, for example, used the op- news operation– they start with the Post also has a social media expert more exposure? Matthes thinks it is landscape. And, it usually reports portunity to change jobs. As news early shift at 6 a.m. and, depending as a member of the news team. “In the special, unique voice of The from the perspective of those who editor of The Huffington Post, she is on the news situation, may stay at the the meantime, other portals are copy- Huffington Post. “We try to adopt a lead the media. “We, on the other attracted by the start-up mentality of office until late at night. ing our ‘social media first’ approach,” point of view for political commentary hand, ask what the political decisions her agile team. “Obviously, this job is Many relevant topics are found by the notes Matthes. “Nevertheless, we will that, in my opinion, has been missing mean for everyone in their daily lives, energy-sapping, but it is the most editors on social networks, which remain the fastest and most innova- in Germany. The generation now en- especially younger people. As it turns amazing thing I have done in my ca- they follow attentively. When Matthes tive source in this area in the future tering the work force has not yet out, this approach also appeals to an reer so far. Here I am part of a team wakes up, he checks his Twitter ac- as well.” been sufficiently recognized.” As older audience, too.”

24 BURDA Annual Report BURDA Annual Report 25 Kerstin Schneider embodies passion for fashioN

I dream of fashion German Elle celebrated its 25th anniversary in 2013 – and is still setting new fashion benchmarks. Fashion Director Kerstin Schneider shares responsibility for the magazine’s success. Themes for fashion spreads even come to her in dreams “Vogue” fell into the ballet enthusi- “I often dream of photos ast’s hands, an issue that was dedi- cated entirely to the dancer Mikhail and themes that Baryshnikov and “Swan Lake.” She I use later in fashion thought, “This is everything that I shoots for Elle.” love, all rolled up into one. It’s ballet, it’s fashion, it’s creative. I’d like to do something like that someday, too.” It came to pass. Later she was even able to work with the photographer from that ballet fashion spread, Ar- thur Elgort. She still has that game- changing magazine. After completing fashion school as well as internships at a variety of glossy magazines, she came to Elle – first as an intern, then an assistant, then an editor and finally Fashion Di- rector. In addition to a passion for fashion, Schneider considers a solid education essential for her work: “By studying at a fashion school, you can The outfit must fit perfectly truly assess the quality of fashion. It for the shoot (above). summery April morning in and brick make the perfect location Makeup (below) is selected helps me recognize the different fab- Berlin’s Hansa Quarter. for an “urban chic” photo spread. to ideally complement the rics. I know what better or poorer clothing. A Things are bustling today in The stylist does hair and makeup for the quiet family neighborhood. Racks a tall, redheaded model with an ala-

of clothes are being delivered, cam- baster complexion. While he works, fashioN for passion embodies Kerstin Schneider era tripods and photography panels she talks about how much she loved dragged along, trolley bags filled with the Disney character Ariel as a child cosmetics and styling accessories and that her current boyfriend shares opened up. In a flat-roofed bungalow a name with the prince in that fairy that is typical for this part of the city, tale. Everyone laughs. Catering ar- Kerstin Schneider, Fashion Director rives – juices, fresh fruit, croissants at German Elle, prepares the photo and more. The food is important, be- shoot with her team. cause the day will be long. On shoot, Famous architects – including Walter Schneider is friendly and relaxed, but Gropius, Oscar Niemeyer and Arne fully focused at the same time. Jacobsen – took the international Even as a child, she was working as a Interbau Exposition in 1957 as an op- stylist. But instead of international portunity to turn the southern Hansa models, she gave her Barbie dolls Quarter into a showcase for classic new looks. She later became a fan of modern architecture with their build- the innovative dressmaking magazine ings. Today, these clean-lined struc- Carina by Burda. Then came a decid- tures made of glass, steel, concrete ing moment, when an issue of French

28 BURDA Annual Report BURDA Annual Report 29 quality is, and I see immediately In the days before the whether a piece of clothing fits well.” shoot, Schneider puts together the outfits and photographs them Dreaming of themes The images being created today in Berlin are for a fashion spread for the September 2014 issue of German Elle. It highlights outfits that are also functional in everyday life. This time, Schneider’s inspiration comes from the interior classics by designer Et- tore Sottsass and his Memphis Group from the 1980s. Above all, the Italian’s daring color combinations appeal to Schneider. The model’s wardrobe today invokes this design movement through color combinations such as pastel turquoise me- As a child, Schneider (right) was already styling her lange with canola yellow or mixed Barbie dolls. It takes nine patterns of waves and marbling. The hours until the entire shoot is in the can (below). silhouettes of the jackets and coats as well as the accessories are a wearable homage to Sottsass’ works. In her own wardrobe, Kerstin Schnei- der prefers a mix of classics and fashion highlights. She combines along. The makeup artist is devoted Elle pieces from Céline with vintage and to the model. He smooths her hair, Topshop, for example. In her work at brings it into shape and emphasizes Kerstin Schneider has been Fash- Elle, she emphasizes a diverse mix- her eyes with eye shadow in smoky ion Director at German Elle for 11 years. The women’s fashion maga- ture of “fashion spreads for dreaming nuances. Her complexion should be zine equates to one of the world’s and wearable outfits that adapt run- matte, but still have a light, natural largest and best-known media way trends for everyday life.” glow. brands. Burda also publishes the She also finds inspiration outside of Schneider joins the photographer to home and interior design magazine Elle Decoration in a joint venture the fashion world: “Curiosity and look at the sites that she selected be- fashioN for passion embodies Kerstin Schneider with Hearst Magazines. openness to every area of the arts forehand from photographs. On loca- are also important to me in my col- tion in the Hansa Quarter, she discov- leagues. I want them to look at the ers new, more exciting perspectives collections with open eyes and curi- that were not fully visible in the pho- ous minds, discover new things, but tos. Together they select the best vi- also be just as interested in design, sual angle and agree on the poses for art, film, et cetera, because we can the model. “I’m constantly saving also draw inspiration for fashion photos and impressions in my own in- spreads from them – and not just ternal database so I can retrieve them from runway shows. I often dream of as needed,” explains Schneider. photos and themes that I use later in Meanwhile, the model’s hair and fashion shoots for the magazine.” makeup are done. Schneider has the During the shoot, nothing is left to young woman slip into the first outfit, chance. Everyone knows what to do. which everyone thinks she looks The styling assistant sorts, irons and fantastic in. Now it’s time to select puts the outfits together according to the accessories. Although handbags, the photos that Schneider brought shoes, glasses and jewelry were

30 BURDA Annual Report BURDA Annual Report 31 already selected for the different outfits, last-minute changes here can also make the small but crucial difference between a very good look and a perfect one.

Expressing your style

Apropos a perfect look: “Of course fashioN for passion embodies Kerstin Schneider there are those days where we just want to be comfortable, but we can still look good. My team and I wear sneakers in the office, too, when we lay out accessories and clothes for a style spread all over the floor and have to crawl around. And then there are days where you think: today I’m going to take a chance. We should do that more often. I always think it’s great when I see women who make an effort. It doesn’t have to be the newest ‘it’ item, I just find it nice when people express their personal style.” The entire team is now on the move, “Urban chic” is the theme everyone doing their bit so that of this fashion spread, produced in Berlin’s Hansa the looks are perfect. The stylists Quarter

32 BURDA Annual Report the light shifts and yet remains the same in the photos by changing the lighting. The hours pass, hair is re- styled over and over; the photographer and Schneider keep carefully comparing the already created imag- Schneider and the photographer continuously compare es on a large laptop screen and mak- the already captured shots ing a preliminary selection. on a laptop and begin to After nine hours of hard work, it’s make a preliminary selection time for the last outfit. But then, Schneider has an idea: the first outfit will be photographed again, only this time at a different location. And lo and behold, this revisit makes a big difference to the final image. Once the last shot has been taken, there are hugs all around. There is ap- plause, and kisses are distributed

generously. Everyone agrees: the ef- fashioN for passion embodies Kerstin Schneider fort was worth it. While they all pack up their equipment in boxes and cases to get ready to leave, Schneider sorts out the arrange the clothing and pin it into pieces from international designers shape, the makeup artist outlines the like Balmain and Dior. These outfits model’s lips, and the photographer are placed in their own case, because and his assistant use lighting to in- they need to be sent on to the next crease or reduce the shadows. editorial department right away. Schneider patiently answers her Finally, 12 hours after the first “hello,” team’s questions. She keeps an eye everything is picked up and the team on everything – and even catches a heads off to the next project. But reflector panel herself while giving first, she expects a short stopover at

the model posing instructions. Had the location that all of them are Spotlights and reflec- she not, the panel would have hit the yearning for – bed. Maybe here, she tors help ensure consistent lighting photographer’s assistant on the will start dreaming of the next photos, throughout the shoot head. Locations and styles change, scenes and styles.

34 BURDA Annual Report BURDA Annual Report 35 Fabrizio d’Angelo learns from his mistakes

“Don’t be afraid of failing!” Anyone who wants to shape the media landscape of tomorrow cannot be afraid of making mistakes, because the only way to avoid them is never to take a risk. Fabrizio D’Angelo, CEO of BurdaInternational, talks about the courage to be honest, lifelong learning and why managers should listen to Socrates that he has a lot to say. Nothing bothers him more than “bullshit.” D’Angelo studied philoso phy and likes to use plain language, but he does so charmingly – as probably only an Italian can.

You are responsible for 17 countries worldwide – for Singapore, Malaysia and Taiwan as well as for Poland, Turkey and France. How many kilometers do you actually travel each year?

Only Lufthansa knows for sure, but I estimate Like his employees, Fabrizio that in the past six years, I’ve nearly traveled D’Angelo has to learn the distance to the moon and back twice. I’m something new every day only in my office in Munich once a week, and once a month in Offenburg. I probably spend the most time in the lounge at Munich airport. Half the airport knows me by now [laughs]. best practices in Asia, they would Many people are afraid call me. Now they call their colleague That means lots of nights in hotels. … in Asia directly, because they know of being themselves – and each other from our meetings. I spend 220 nights in hotels every year. I have of being honest. to tell you a story about that: I recently went to You always emphasize how impor- a furniture store with my girlfriend to buy a sofa. tant lifelong learning is. … Right after coming in the door, I said: “We’ll take make all the decisions myself. That’s impossi the couch back there!” She answered, puzzled: ble. I try to find employees on location who are One of the biggest challenges of the “But how do you know that when we haven’t able to make the best decisions. I select them, digital revolution lies in the fact that

tried out any yet?” I just said: “I sit on 220 sofas coordinate them, give them tips and make sug we have to learn so many new things. his mistakes learns from d’Angelo Fabrizio every year and believe me, this sofa is just the gestions – but they have to implement those What is HTML? How does a blog right one for us.” Of course she didn’t believe things themselves. When I visit, it’s for a health work? What do the new business me – she wouldn’t be my girlfriend otherwise – check of sorts and to explain what’s going on at models look like? And that means, as and tried out every single sofa in the store. In headquarters in Germany and in the other a very successful publishing execu the end, she came back to me and said: “You countries. Naturally, I try to motivate my em tive, you sometimes have to admit know what? You’re right. That’s the best one.” It ployees on site as well: “Come on people, you that you don’t know something. But BurdaInternational sounds funny, but when you’ve already tried out can do even more!” that isn’t so bad, because then you every sofa imaginable, as I have, you can see just learn it. We have to start from The company Fabrizio something like that at a glance. If something works well in one region, do you scratch with so many things. Some D’Angelo heads has more than 2,600 em suggest trying it out in other regions? people have a hard time accepting ployees and publishes n his windowsill stands a bronze statue of a Burda has expanded – for example, through that. But everyone has to do it. over 290 magazines in Chinese good-luck dragon. Next to that, framed its acquisition of Gruner + Jahr in Poland Normally, my employees will already know 17 markets as well as covers of French magazines and old black-and- or the collaboration with Glam Media in about it. For the last three years, we’ve been Does that apply to you as well? a variety of digital me dia products. white photos from Italy. A Buddha figure smiles Russia, Ukraine and Kazakhstan. Do you holding big meetings where all the Burda up at him from the desk. As soon as you enter travel primarily to those countries now? International managers can get to know each Of course! I read a lot, ask a lot of Fabrizio D’Angelo’s office, you see that the CEO other and share experiences. The more we questions, talk to a lot of people, of BurdaInternational gets around a great deal. No, I try to visit all the countries I am responsi think and act as a team, the better. Previously, and try out many things. I’m currently O And when you talk to him for a while, you notice ble for regularly. But not because I want to if someone from Poland wanted to know about helping my brother launch his start-

38 BURDA Annual Report BURDA Annual Report 39 Fabrizio D’Angelo

The Italian feels equally at home in Tegernsee (below) and in China (left, a souvenir). The 42-year-old studied philosophy in Pisa, trained at Milch strasse Publishing Group in Ham burg, and then worked at Mondadori up and am learning a great deal from him – ion, the first important decision that you have to Publishing before becoming CEO of BurdaInternational in 2009. about search-engine optimization, for example. make in your job is: am I really going to try to You know, it’s no problem for me to launch a improve my knowledge, or am I just going to new magazine on the market anywhere in the pretend? That is a fundamental, human ques world. That’s my job; I can do it in my sleep. But tion. I decided never to act as though I knew when we’re dealing with digital products, things something better, regardless of what it cost me. look very different. We don’t know enough Because you pay a price for being yourself. But about that yet. We are constantly improving, but if you want to spread the message that lifelong we’re still not good enough yet. And the higher learning is essential, then you should admit up the hierarchy you are, the more difficult it is what you don’t know. If you tell your employees: to say, “Oh, I don’t know that.” “Sorry, I really don’t know that, I have to learn it first,” they will understand it as precisely that – Why is that? Are managers afraid they’ll lose and be relieved that they don’t have to pretend authority if they admit they don’t know some- to know something they don’t. thing? But it isn’t enough to say, “I don’t know, ei- Many people are afraid of being themselves – ther!” You also have to be prepared to learn. ceed like scientists. Scientists experiment – and and of being honest. There is a certain idea of no scientist begins an experiment without an what leadership should be. According to that Of course, there’s no shame in not knowing assumption or theory. In the real world, every idea, leadership means having more expert something. You see, I studied philosophy, and theory needs to be tested as well. Our experi Stopover: a frequent flyer, knowledge. This burdens managers with the even Socrates says that the first step toward ments happen to be the launch of a new maga D’Angelo is in his Munich necessity of knowing more than their employ wisdom is to admit your own ignorance. That’s zine or digital product. Now, any scientist will office only once a week ees – or at least acting like they do. In my opin why you have to know where the gaps in your tell you that 95 percent of all experiments fail and only 5 percent are successful. But they are the very people we have to thank for scientific progress.

Even Nobel Prize winners often take years to his mistakes learns from d’Angelo Fabrizio achieve a breakthrough. … knowledge are – and then try to learn and close them as well and as quickly as possible. That’s Those people in particular, because you only what it’s all about. That’s why I dislike bullshit as get a Nobel Prize if you dare to be a pioneer in a matter of principle, because for me philoso new fields. I like comparing our work to science phy has always meant seeking truth. Naturally, because the empirical method is so brutally you’ll never find absolute truth. Not even clever honest. If you are a real scientist or a real busi philosophers like Hegel, who thought they knew nessman, you establish realistic criteria for suc a lot about truth, managed it. But you have to cess or failure in advance. You set yourself a re try. The best thing in life is to set something in alistic schedule and then watch. How did it go? motion and learn new things. Otherwise, life has Did it work or not? no purpose. In business, however, you usually lose money Does willingness to learn also mean willing- when you make mistakes. Is that a problem ness to make mistakes? for you, or does it come with the territory?

No one knows what the world of tomorrow will It’s part of our experimentation process. Let’s look like. If we want to shape it, we have to pro assume that we tested out 10 new things last

40 BURDA Annual Report BURDA Annual Report 41 Or do you just sweep it under the rug and act as though it never happened? You can learn a great deal from flops. You know, as a philoso phy student in particular, I always had the same worry: you know a lot in theory, but can you im plement it in real life? Or are you just a dork in an ivory tower? That’s why I followed this max im early on: don’t be afraid of failing, try some thing out, implement it in real life.

But that only works if you work for a company that doesn’t fire you right away if you fail once.

That’s why I work for Burda. The prevailing at mosphere here makes it possible – if you do it in an open and honest way. Naturally we have to A look in the mirror: “No one is perfect.” make a profit. After all, we are a business and not a charity. But the message is: don’t worry, “The best thing in year. Some of them were flops, others success festival in France and Britain, and Russia will es. Not everything has to succeed, but when soon follow. So the success of our experiments life is to set some- Weatherproof: we need to everything fails, it means you’re not a good sci cannot be measured after a single year, be keep looking ahead, even in entist. At the end of the year, I take stock and cause we made a loss then. But when you look thing in motion and stormy times determine that we’ve lost some money. But the at it over the entire period, we will make millions his mistakes learns from d’Angelo Fabrizio important thing is that we don’t repeat the with these experiments. The only problem is learn new things. failed experiments, just the successful ones. that we don’t know beforehand which experi And usually the successes are scalable and ments will work and which won’t. For that rea Otherwise life has can be exported to other countries. I’m respon son, we need to be very flexible and open- sible for 17 countries, and if I develop a profit minded. no purpose for me.” able event concept for the Czech Republic, then next year we can also implement it in Rus Do you have to be courageous as well? sia, Poland or Ukraine. So next year’s profits will try something, set something in motion. Some increase significantly. I think “honest” would be more accurate. But people find it difficult to trust a person to that sometimes it also takes courage to be honest. effect – until they notice that I honestly mean it Have you done that? People who always win are extremely boring. and also apply it to myself. Anyway, I believe For me, this image of the well-tanned winner that’s the only way to lead employees these And how! For example, we organized the with the perfect white smile is infuriating. No days – by acting as a true role model. “Appetit Picnic” in the Czech Republic – Appetit one and nothing is perfect. In business, a flop is our food magazine there. It became the coun means that you search for the reasons behind try’s biggest food festival in its first year. This it. If readers don’t like a magazine, you have to year, it’s twice the size and we’re earning three consider how to deal with it. Do you see it as an times as much. Now we’re putting on the same opportunity to better understand your readers?

42 BURDA Annual Report BURDA Annual Report 43 The Burda School of Journalism is teaching for tomorrow

In a class of their own At the Burda School of Journalism, students learn to research, write, film, blog, program and tweet – and how to market themselves and their stories tors-in-Chief and publishers,” says Nikolaus von der Decken, who has been Director of the Burda School of Journalism since fall 2012. It was his idea to turn all Burda students into publishers of their own digital media brands. Hasenbeck, who is completing the practical part of her traineeship at Focus, has hit a nerve with her craft beer blog: her page has gotten more than 60,000 hits and “Feiner Hopfen” has 700 Facebook fans. But Hasen- beck has yet to earn money from her ad-free site. “The blog primarily gets me into the routine of writing,” she says. “And it is a digital playground where I can experiment.”

Leeway for experimentation Mareike Hasenbeck and the other students get most of the skills they need during the 18-week basic training at the beginning of the program. In one of the first units, Holger Schmidt – a business journalist known as the “Netzökonom” (English: Impressions: the Internet economist) – describes the mood wall gives the graduating class importance of the Internet for the inspiration for their media world and how journalists use Wearable advertising: Tim still-secret magazine Geyer even advertises his project it for their work. In addition to the tra- blog, “Punkpoprap,” on his jacket (above). Below: im Geyer looks for a story uled before then in the lofty, open- ditional journalistic forms of expres- videoconference with Tim about a grandmother with an space office at Hubert-Burda-Platz 1. sion, social media, blogs, data jour- Geyer (left), Sarah iPad, while Mareike Hasen- A brainstorming session for the video nalism, search engine optimization Edenhofner (second from T left) and fellow students. beck switches thematically back and intended to advertise the magazine is and smartphone journalism are listed forth between quick sex and slow- coming up. The student quickly on the program. Students have a brewed beer. All in all, it’s a fairly nor- checks beforehand whether there is great deal of leeway to experiment mal morning at the Burda School of any feedback to her blog. New Face- with infographics, video-editing pro-

Journalism (BSJ) in Offenburg, at book friends? Reactions to her latest grams and other tools in a digital tomorrow for is teaching Journalism of School The Burda least in this phase: the 25 students in tweet? E-mails? And indeed: there is toolbox that’s constantly changing. the class of 2012-2014 are working a request from Vienna in the mailbox. Experimentation includes times when on their final project. Within seven They would like to invite her to give a things go differently than expected: weeks, they must develop and design presentation at their local craft-beer to test the best ways of gaining atten- a magazine including a website, so- festival. tion on Facebook, the journalism stu- cial media strategy and image film. What sounds like a private pleasure is dents recently promised to plant a The title and theme are still a closely in fact a lot of work. Almost every flower for every “like.” They had to guarded secret. After all, the maga- day, 25-year-old Hasenbeck writes, discontinue the campaign very quick- zine should surprise readers with an films or tweets for her blog, “Feiner ly – and find a way to get hold of 700 unusual concept – as did its prede- Hopfen” (English: fine hops), about flower plants. “Digitally active news- cessors, Share, Treat, and Hollyhome. craft beer. But the blog is also a fun- paper journalists are in demand,” Right now, Hasenbeck is writing a damental component of her training. says Maximilian Gaub, production ad- story about infidelity in the Internet “The idea is to let the students devel- visor for the online final magazine age. The project is due in two days; op a media brand on their own and project, about the new digital content several conferences are still sched- turn themselves into their own Edi- in the Burda training program. Gaub

46 BURDA Annual Report BURDA Annual Report 47 is a graduate of the school himself. Edenhofner, for example, used it to During his time 10 years ago, training report live on the America’s Cup for for online journalism took only one her sailing, surfing and wakeboarding week. Since then, the content of the blog, “Style am Wind” (English: style four-month basic training program on the wind). Her regular readers has grown massively. In addition, the were not the only ones who liked it: curriculum is no longer divided up by Team Oracle, who went on to win the media channel. It’s simply structured world’s most famous sailing regatta, didactically from easy to difficult. shared her tweets. Nevertheless, the traditional forms of journalistic work are not obsolete. Visual thinking Quite the opposite: unique content is Students of the Burda School of key, so it is more important than ever Journalism learn not only how to that journalists go out into the world. write stories, but also how to get Many Burda students have been ac- readers to want to read them. School tive on Twitter for some time. Sarah director von der Decken regularly in- vites Editors-in-Chief from Burda editorial offices to conferences so that students can practice pitching ideas to them. Von der Decken speaks of “presentation skills” and believes that Authorization to film: filming is a solid snappy headlines, trailers and photo component of the captions have the same value in the students’ training (above). Lecturer training program as the text of the Maximilian Gaub (left) story. “We need a next generation wants to broaden their horizons. that understands journalism as a whole.” In his opinion, editors of the future cannot just write and operate digital channels. They have to think visually as well – which is why students have to present an image idea for every topic. They have to recognize market needs and develop topics that fit specific target groups. What makes those groups tick? Stu- dents learn that from their blogs,

The year in review: student and craft-beer blogger Mareike Hasenbeck (above) meticulously notes among other things. “User behavior in her beer journal (below) how she likes different varieties gives me a fairly precise idea which

headlines and stories work and which tomorrow for is teaching Journalism of School The Burda ones don’t,” says Tim Geyer, who did The entire publishing group benefits The BSJ his traineeship at Playboy and writes from the expertise gained by Geyer the music blog “Punkpoprap.” The and his fellow students during their The training program at the 27-year-old is learning what matters training. In their main editorial offices, Burda School of Journalism for the success of a website not only many of the students are valued con- in Offenburg takes two at the BSJ, but also during an over- tacts when it comes to digital strate- years, with students spending 18 months in various seas posting. Geyer spent three gies and forms of expression. “The Burda editorial offices. They months at the Burda office in New current generation of students has a The way of things: should be versatile and uni- York. A challenging time in which he huge advantage,” says von der Deck- every graduating versally deployable after- class brings out a wrote a report on cannabis legaliza- en about his pupils. “Their digital ward. A new selection pro- new magazine – such cess enables the best tal- tion and learned a lot about journal- knowledge is a unique characteristic as last year’s Share magazine ents to win. ism in the US. “I was able to talk to in many editorial offices. That’s why, the editors of the ‘New York Times’ starting in 2014, we will be introduc- about the best way to implement ing a new subject, Basic Program- content online,” he notes. ming Knowledge for Journalists.”

48 BURDA Annual Report BURDA Annual Report 49 Kjeld Peters loves technology

The algorithm of love Only fate knows whether two people are compatible – and the computers at Elitepartner. Kjeld Peters, the Technical Director for the online dating service, uses high tech to help over four million singles in his database find happiness for life jeld Peters is: a man. He is Let’s clear up a couple of things. Nor- looking for: a woman. This mally Peters doesn’t pay attention to K is what he enters in the the answers in this test, but rather fields that appear on the Elitepartner. whether any error messages appear. de site. “I’ve done this test thousands Aside from that, the dark-blond, tall, of times,” says Peters, grinning. The athletic 33-year-old is not looking for next page loads. He bends forward a wife. He is happily married and has over his iPad. Frown lines appear. a two-year-old son. “What is important for you in a part- As Technical Director, Kjeld Peters

nership?” Three or four answers are has been optimizing the Elitepartner Completely focused on love: required out of 12 possibilities. Toler- website – one of the largest and most even the conference rooms are named after deities of ance? Love? Faithfulness? Children? successful online dating services in love (below) Sex? Well. the German-speaking world – for six and a half years. When he started, Burda had just taken over the Ham- burg-based company and it still smelled like a start-up. Since then, the number of employees has nearly

tripled, to more than 100. Revenues Peters translates the management board’s goals into directions for the programmers (above) are growing in the double-digit percentage range every year. The office in Hamburg’s casual Schanzenviertel neighborhood quickly became too For decades, psychologists have train and subway. He uses this time to small. Now Elitepartner resides in the been researching the secrets of answer e-mails on his iPad. Work-life upscale Hafencity area. choosing a partner. The results: two balance? “The term is outdated.” His In all of these years, millions of men people should be similar – and yet dif- wife sees it a bit differently, but: and women seeking partners have ferent. Even if their personality pro- “Challenges strengthen relationships. eagerly checked the right boxes on files fit together like two puzzle piec- That definitely applies to me.” Box the website and laid bare their es, it does not guarantee lifelong checked, on to the next page. dreams and passions. Programs from happiness – but it increases the likeli- Now it’s about values, motives and Kjeld Peters loves technology Kjeld Peters loves Peters and his 22-person team per- hood. Whether or not a person be- goals in life. Peters sees himself as ment board of Elitepartner. He conform the actual matchmaking. Who is lieves in the “perfect partner,” per- success and competition-oriented, verts strategic goals into clear orders compatible? Who is even more com- sonality plays a defining role. organized and structured. Sounds for his team: “I am a translator.” patible? Peters’ system spits out a list Kjeld Peters does not believe, for ex- right for an IT manager. Then he real- The test is completed. Now it gets in- of suggestions. Over four million sin- ample, in love at first sight. “Does not izes he omitted something: at the be- teresting, because the algorithm is gles trust his algorithm of love. apply,” he checks. He and his wife at- ginning of the questionnaire, he for- beginning to work. “Our ‘Coca-Cola Now he checks three boxes. “Ap- tended the same school for years got to check that he likes to work formula,’” says Peters, alluding to the proach conflicts openly. Maintain without sparks flying. While he fills with computers. He, of all people – secrecy of the algorithm. Around 100 space. And: mutual trust, openness out the test, the software is calculat- the technology freak. How he would lines of code fill the screen. The and honesty.” On to leisure time and ing his personality points in the back- have loved to have had a Commodore terms “m1” and “m2” keep appearing; interests. A rewarding question, since ground. For example, how great his 64 like his friends had in their room in they represent two people and their this two-meter-tall man plays basket- need for closeness is. Or resistance Flensburg! But his father was against personality points. The values for ball – of course. to stress, measured with the state- it, even though he himself was a pro- closeness, self-sufficiency and domi- The questions about sports, music ment: “I often feel restless and tense grammer. The 10-year-old Kjeld end- nance should have a certain distance and favorite seasons lighten up the in my free time.” Does not apply to ed up getting a discarded PC. Pro- between them; “m1” and “m2” should test and appear in every member’s Peters at all: “Quite the opposite. I lie gramming fascinates him to this day be different. With communication profile. In the end, singles should be- down in bed and go to sleep.” A prac- and he likes to play on the computer, skills, ability to empathize, handling come paying customers, sending tical trait, since Peters’ business but he was never one of those shy conflict and processing stress, they messages through Elitepartner – and phone also rings on the weekend. He nerds as per the cliché. Otherwise, should lie close together. Up to 120 these topics provide easy conversa- likes it that way. He commutes to he would not be able to do his job, matching points are theoretically tion-starters. work for an hour each day on the because Peters sits on the manage- possible. It’s fate’s formula for people

52 BURDA Annual Report BURDA Annual Report 53 Love search Like a program director, Kjeld Peters and his employees determine what singles really want. For example, 69 percent of men are Peters needs to ana- seeking an attractive partner. In contrast, only 53 percent of all lyze the “ratings,” mil- women want an attractive husband. But 53 percent of women would like to have a professionally successful lions of clicks, com- partner. Conversely, that is only true ments and messages. for 33 percent of men. Big data in the service of true love.

Virtual meets real world: “Like” stamps for quick comments (above), and couples who got to know each other thanks to

Elitepartner (left) technology Kjeld Peters loves seeking a partner – and for Elitepart- users as possible over these hurdles ple with the right intentions, not just government worker with a bachelor’s ner as well. The same thing applies to – to “convert” them, as the industry those looking for a date next week- degree. Likes chill-out music. Very at- the dating service from Hamburg as term goes. Every day this system end.” After all, everyone swimming tractive. In real life, Peters would have for the beverage producer from At- spits out these conversion rates, around in the perfect pool invested to contact her now. Instead (to the lanta: change the formula, and it’s no comparable to viewing figures in the 20 minutes in the test. The algorithm detriment of his conversion rate), he longer Coca-Cola. That’s why since TV industry. And like a program direc- of love is no guarantee for success – exits. His wife will be pleased. The Peters joined the company, he has tor, Peters needs to analyze the “rat- but the most important foundation. two of them used the algorithm of only tweaked the details of the for- ings” – millions of clicks, comments, Peters has been programming toward love on themselves for fun once. Only mula. Otherwise the suggestion list and messages. Big data in the ser- the future for some time now – mak- 85 matching points. But Peters be- would be turned upside down over- vice of true love. He hunts for causes ing mobile apps even more functional, lieves that things will develop nicely. night. A person who was a dream in the data stream: why do users analyzing even better what singles partner yesterday would only be a quit? Why do they stop writing con- are looking for. mildly interesting candidate today. tact messages? What do they actual- So who is he most compatible with? It Getting people to stick with it – that is ly expect from our service? Do they would need to be someone who the biggest challenge for Peters and expect a scientifically determined seeks closeness, can handle a domi- his big data specialists. Some inter- perfect match, meaning a suitable nant partner, believes in growth in a ested people don’t complete the test. suggestion for a partner? Or the per- relationship and can communicate They don’t click through the sugges- fect pool, meaning the largest and well. Someone who handles conflict tion list or they hesitate with sub- best selection of elite singles? well and is stress resistant. scribing. Peters has every activity on Likely the latter, Peters has found In first place with 97 matching the page evaluated to help as many through surveys. “We have the peo- points: a student, 1.63 meters tall,

54 BURDA Annual Report BURDA Annual Report 55 Alexandra Schiel connects people

The worldwide network From New York to Beijing: DLD is where the global digital elite comes together. Alexandra Schiel and the rest of the DLD team are constantly looking for smart people’s minds and the latest Internet trends for the innovation conference Two Germans in New York: DLD founder Steffi Czerny (left) with Alexandra Schiel

ing author Paulo Coelho might show up to discuss storytelling with Nap- ster and Facebook financier Sean Parker. Since the first meeting of the digital elite, in Munich in November 2005, it has developed into Europe’s leading digital conference – with offshoots in Tel Aviv, Rio de Janeiro, London, Bei- jing and other cities, and the spin-off DLDwomen, which features women’s actually wanted to wear dirndls to the perspectives on technological devel- conference in New York, but it was re- opments. DLD regularly brings to- ally too cold for that,” Schiel says with gether the who’s who of the Internet, a smile. With the rest of the team from Google Executive Chairman Eric around DLD founder Steffi Czerny,

hen you first see the IAC the building’s exterior. Standing on a Schmidt to Facebook founder Mark she looks after the planning, organi- people Schiel connects Alexandra Building, you think an small stage were four men from Te- Zuckerberg, to talk about the future. zation and execution of the innovation W alien space ship must have gernsee, Germany, wearing lederho- conference. landed in America’s biggest city. Star sen and playing Bavarian folk music Insider perspective To get start-up founders, investors, architect Frank Gehry’s strangely on guitar, tuba, harmonica and double “The event in New York was a trial Internet stars and creative master- twisted, semi-transparent, glass- bass. It was the first day of the DLD run for us,” says Schiel, who has minds enthusiastic about the Burda fronted building is eye-catching, even digital conference. worked for Burda for nine years now, digital conference, the 32-year-old alongside the many other famous While at first glance it looked as if the when asked about the first DLD in the makes frequent visits to Silicon Valley skyscrapers of Manhattan. Appropri- band from Bavaria had turned up at US metropolis. It was a very success- and other high-tech locations. “It’s DLD ately enough, this futuristic high-rise the wrong party by mistake, it was in ful one, because the late-April event what we call ‘fishing for DLD,’” she is home to the Internet company of fact all part of a plan. “After all, our attracted more than 1,000 visitors says. On her trips, the business grad- The first DLD took legendary US media manager Barry motto is ‘Connect the Unexpected!’” and 100 speakers to the IAC building uate not only meets many exciting place in Munich in 2005. Since then, Diller, with the offices of the video explains Alexandra Schiel, Senior in Manhattan. They included Danish people, but also gets to know – from DLD has become the portal Vimeo, the knowledge commu- Project Manager at DLD Media. artist Olafur Eliasson, EU Commis- the inside – the companies the whole leading European nity Ask.com and other well-known That’s why the first DLD in New York sioner Viviane Reding, art director world is talking about. And in doing digital and innovation web companies. It’s a miniature Sili- featured Bavarian musicians, be- Stefan Sagmeister and AOL founder so, she has discovered that many conference, with offshoots in such plac- con Valley in the middle of New York cause surprises go well with the Steve Case, who now runs the invest- of the clichés people associate with Scene of the first DLD es as Tel Aviv, Beijing City. Nevertheless, for the American Burda conference, whose watch- Conference in New York: ment firm Revolution. hip Internet start-ups are indeed only and, most recently, the IAC Building visitors from the digital industry last words are “Digital,” “Life” and “De- “Of course, we were consciously clichés. New York City. April, the scene inside the high-tech sign.” At DLD, Lady Gaga might make playing up the image that we come Last fall, for example, she visited the building was even more unusual than a surprise appearance, or best-sell- from Bavaria and Munich. Some of us instant-messaging service WhatsApp

58 BURDA Annual Report BURDA Annual Report 59 in California – and was very surprised with a little luck, attendees may get a by how dreary their offices looked. chance to talk to one of the stars as

“Just two hours before, we were they stand in the line at the schnitzel Steffi Czerny with DLD Chairman around the corner at Dropbox. The truck or during the Bavarian Night at Yossi Vardi (above). From Tegernsee to Manhattan: difference was a real culture shock.” the beer garden at New York’s Stan- musicians at Bavaria Night (left). The offices of the cloud-storage dard Hotel. Even in the age of Skype, Below: Stefan Winners (3rd from right), Board Member Digital, service provider Dropbox looked like Twitter, Facebook and Google hang- discussing business models of the lounge of a boutique hotel; at outs, there’s no substitute for person- the future with Etsy CEO Chad Dickerson (far left) and David WhatsApp the 30 or 40 employees al encounters. It was at DLD that Nussbaum of F+W Media (2nd sat in a cheerless open office with Yahoo CEO Marissa Mayer noticed from right), among others. old-fashioned strip curtains, beige Nick d’Aloisio, then 17 years old, from desks and beige-brown partitions. London, whose start-up she later A few months later, Facebook paid bought for $30 million. $19 billion for the start-up, which wants to replace SMS. More than networking Alexandra Schiel didn’t have difficulty The importance of the human aspect signing up well-known speakers, New York (above) still sets the pace in the media world is also evident in the handling of such as WhatsApp founder Jan – the ideal location for a digital conference. prominent speakers, whom Alexan- During the event, Alexandra Schiel (below) and her Koum, for DLD. “I enjoy approaching colleagues sometimes work 18-hour days. dra Schiel used to look after when people,” she says with a beaming she started at DLD. When famous smile. More than 20,000 addresses venture capitalist Ben Horowitz, one

of established major players and of the first to back Twitter, comes to people Schiel connects Alexandra newcomers from the digital economy, the conference in Munich, he will find politics and culture are stored in the waiting for him in his hotel room a DLD team computer. pair of original barbecue gloves – be- According to Managing Director Stef- cause the DLD team knows that fi Czerny, there is much more going Horowitz loves to barbecue. And if on than just networking. “The net- Sheryl Sandberg, COO of Facebook, working concept is much too superfi- or Wikipedia founder Jimmy Wales cial for me,” she explains. “To be able has to rush off to the World Economic to actively connect people, you have Forum in Davos right after DLD, to be interested in them. You have to Schiel and her team will organize a have a feeling for people and know helicopter if necessary. One of what they are concerned about, what Schiel’s colleagues looked after Ma- drives them.” rissa Mayer at a DLD conference, and This attitude is another reason why the current Yahoo head, who was DLD is considered a very special then still working for Google, was so conference. “It’s really about the peo- pleased by how she was treated that ple,” says Schiel. she hired him to be her office manag- After giving their own speeches, ma- er shortly afterwards. ny of the speakers join the audience Anyone who thinks that successful to listen to the other presenters, and networking means exchanging as

60 BURDA Annual Report BURDA Annual Report 61 many business cards as possible doesn’t have a clue about what is really involved. “You have to create lasting relationships,” Schiel explains. Sometimes that means a lot of work. Shortly before and during the conference, Schiel and her colleagues sometimes have to work 18-hour days, in order to get the speakers they absolutely want and to make sure everything runs smoothly. “I haven’t really celebrated Christmas for the last nine years, because that is our busiest period,” says Schiel, laughing about the hectic days before the main DLD conference, which takes place in Munich every January. That kind of stress can only be managed if you have the right qualities:

“Alexandra is full of passion, curiosity, people Schiel connects Alexandra persistence, team spirit and ambi- tion,” is how Steffi Czerny praises her longtime employee.

Trend indicator for Burda Schiel and her colleagues not only track the latest trends on the Internet and social media, but also regularly visit important technology conferences – such as TED in the US, the Web Summit in Dublin, LeWeb in Paris and the Disrupt Europe in Berlin – where they are always on the lookout for speakers with unusual ideas – and the next big thing. While there, the DLD people make contacts that can be useful for the In constant communica- whole Burda Group. When colleagues tion: at the conference, from other divisions want to know, for Alexandra Schiel hardly has time to admire the example, how to best approach a New York skyline

62 BURDA Annual Report Timing is everything: the clock (above) reminds participants in discussions to be succinct. Left: the DLD team in New York.

Creative masterminds: a video wall shows the greats who have already spoken at the conference

particular start-up in Silicon Valley, are making this transformation hap- the DLD team can often help. pen. One especially influential person

Burda CEO Paul-Bernhard Kallen she still wants to meet and invite to people Schiel connects Alexandra regularly speaks at the conference, DLD is Apple chief designer Jonathan and the whole Executive Board even Ive. Best of all would be to have him travels to off-site events such as DLD together with the man he considers “ We are the trend New York City to learn about the lat- his inspiration, German designer Diet- est digital developments on the spot. er Rams: “Those two creative master- indicators for Burda The innovation platform has long minds together on the podium – that – and sometimes the since become a strong brand for would be amazing.” door-openers as well" Burda. “We are the trend indicators for Burda – and sometimes the door- openers as well,” Schiel says. To make even better use of this knowledge for the company, the media company has recently started a DLD Burda. In November 2013, at the first such conference, more than

550 Burda employees from 17 coun- Goody bags for visitors tries came to Munich to get up to speed on the digital transformation. Through her work, Alexandra Schiel Communications headquarters: the discussions are streamed live via Internet has constantly met the people who

64 BURDA Annual Report BURDA Annual Report 65 Diana Knodel develops new projects

A change of conviction Diana Knodel works as a Product Manager at Xing, the social network for professional contacts. She would like to get more women interested in programming – and has launched several initiatives to achieve that goal gramming knowledge. A type of puzzle that leads to success in just a few minutes – and the first step toward a lofty goal: getting more women interested in computer science. “Often, women in particular have a false image of programming,” says Diana Knodel. And she wants to change that, because it has to change. That’s why Knodel, who is a Product Manager at Xing, the social network for professional con-

tacts, works on cat content in her spare time – Diana Knodel’s team is responsible for Xing’s programming interfaces. The colorful cards on the schedule mark the next process steps. to help women and girls realize that IT isn’t boring, but rather creative teamwork that’s also fun. More than 20 women have come to learn plowed through exercises and problems, often anymore, without her part-time entre- programming this Saturday at the app camp for until late at night. And yet Knodel felt a lack of preneurship: “I learn an incredible women – and a few want to “conquer their tech- acceptance for a long time, at least in those amount and get to know interesting nophobia,” as one participant puts it. places the Stuttgart native liked to spend time: women – and both of these help me The event was organized by the Hamburg at music festivals, in less tech-savvy circles. “At get ahead in my job.” Diana Knodel develops new projects develops Knodel Diana Geekettes, a network for women in the tech the beginning, I was uncomfortable saying that I The next project is already set, the and start-up scene, and App Camps, a series studied computer science. Instead, I talked Hamburg Hackathon. Organized by from the Hamburg Open Tech School. Diana about what I was doing with media.” Back then, the Geekettes, sponsored by her em- Knodel co-founded both initiatives – because women in computer science were considered ployer, Xing. Even her husband, who she wants to get things moving. “I want more unfeminine, eccentric nerds. Clichés, of course, is actually a political scientist, started people to love tech,” she states about her moti- but rather widespread ones. “The best compli- programming after being infected by vation in her profile on the website about.me. At ment was: ‘You don’t look at all like a computer his wife’s passion. first, however, the 32-year-old was not fully geek,’” recalls Knodel. Even while on maternity leave, Knodel Xing convinced herself. Back when she began study- didn’t take a break, instead developing media information technology, focusing on Passion for programming ing SpeedSpiration, a social platform Diana Knodel is one of psychology, because she found the communi- She laughs about it now. Much has changed. for questions. “A great learning proj- more than 500 employees at Xing. The cation opportunities online interesting, because “Now when you say you work in IT, it’s quite ect for me,” she says. And one of the social network for otorious as it may be, it works: cat content. her interests in math and art indicated she’d like sexy. Like a woman who is into soccer,” says few projects that she has given up. professional contacts “Meow.” A dozen young women cheer at the it, and because her mother thought that the al- Tina Egolf, co-founder of the Hamburg “We were a small team of two people was founded in Ham- sound, laughing and staring with fascination ternative, social pedagogy, would bore her am- Geekettes. The group that started as a “small and worked on it on the side. At some burg in 2003 and currently has more than at their monitors, which show a close-up shot bitious daughter. side project” now has more than 600 members point, we had to decide whether or 14 million members. of a cat meowing. “The subject itself had difficulty convincing me,” – many more than planned. That makes it easier not we really wanted to invest more The first app they’ve created themselves, and it says Knodel looking back. What inspired her for Knodel, because more people get involved here.” was child’s play thanks to the MIT App Inventor, was like-minded people – men and women who and more sponsors sign up. She can’t even Thanks to this decision, she suddenly N a toolbox system that can be used without pro- remain friends to this day, and with whom she imagine a life without her many side projects had more time – and arrived where

68 BURDA Annual Report BURDA Annual Report 69 optimize the product.” the individual process steps. Her current area of ex- In the middle stands Marvin, a life-sized robot pertise is APIs – appli- with compound “fly” eyes, built from circuit cation programming in- boards, keyboard fragments and smartphones. terfaces. An API is a “He is our team mascot,” Knodel explains. And software-to-software although Marvin is clearly not a cat, he per- interface that allows forms a function that is similar to the cat con- applications to interact tent’s function – making technology more hu- with each other. “This man and approachable. The only thing Marvin is how we enable ex- can’t do is meow. ternal providers to develop other great prod- Product Manager Knodel shares the open-space office ucts with Xing,” she ex- with her seven colleagues plains. For example, Lebenslauf.com allows

Diana Knodel (right) explains to a young colleague at Geekette camp how to program apps for smartphones users to create a résumé as a PDF or Web page using their she currently is: a Product Manager at Xing and Xing profile with just a few clicks of the mouse. a role model for women and girls who are inter- The Xing apps for iOS and Android are also ested in computer science. Even as an employ- based on this principle: “Without API, we ee, she behaves like an independent entrepre- wouldn’t have any mobile apps!” neur. She is constantly looking for new chal- Diana Knodel and her team continue to develop Diana Knodel develops new projects develops Knodel Diana lenges, developing her own initiatives, likes to these interfaces. The six men and two women make decisions, is open to the ideas of others sit in a bright, friendly open-space office with and has the courage to say no sometimes. “Di- chest-high shelves holding books and gadgets. ana is an unbelievably focused person. Without On the walls hang photos and sayings, and ta- her enthusiasm and discipline, many of our of- bles with pink, green and yellow cards marking ferings wouldn’t even be possible. And that makes it a pleasure to work with her,” says her Geekette ally, Tina Egolf. And perhaps the se- “I really like to cret lies therein: Knodel pursues what interests her in her professional life. “I really like to make make plans. I have plans. I have dreams that I want to see come true. That’s why I’m happy when I can get things dreams I want to moving.” These are visions that inspire her – ideas of what the future could be like. see come true. “And you always have to be good,” says the 32-year-old. Especially as a woman. And partic- That’s why I’m ularly in this industry, where many things change so fast: “For good people, programming happy when I can is more than just a craft. Good people think for themselves, contribute their own ideas and help get things moving.”

70 BURDA Annual Report BURDA Annual Report 71 Holger Albrecht shows his dedication

Support for the community For many Burda employees, their commitment doesn’t stop when work does. Holger Albrecht of IT Support, for example, teaches children living in difficult circumstances how to use computers Small groups of young people roam said by a 9th-grade student remains the streets, American hip-hop music stuck in her mind: “I am much more rings out from a cell phone. Com- afraid of working than I am of being pared with Detroit or sections of Ber- unemployed.” lin, Hasenbergl is a nice, well cared- for neighborhood. But the pastel col- Friendlier than in school ors of the building facades cannot This is where student intern Stefan hide the fact that its inhabitants’ comes from. “Good,” is his answer problems are serious: the families when he is asked how supported by Lichtblick can barely he likes Burda. Stefan is manage their daily lives without as- in 8th grade and hopes sistance. Many family members have to get his high-school di- never had a regular job, and tend to ploma. The week spent be overweight, have diabetes or suf- at the publishing compa- fer from mental illness, even when ny, says trainer Friess, is young. “Our kids have no models of important for him partic- wage-earners. The person we find a ularly because it lets him training placement for is usually the see that kind and friend- only one in the family who gets up in ly people work there. e could be just a normal the morning,” says Friess. A sentence And in fact Stefan has

student intern, standing in For the children, the PC courses front of Building 29, rocking are an important experience Hback and forth in his running shoes. He sticks his hands in the pockets of his jeans, looks down at the ground and then aimlessly scans the Burda campus. It’s lunchtime at Arabella park in Munich, and 14-year-old Ste- fan Peters (not his real name) is waiting to go to the canteen for lunch with his mentor, who still has a few

words to say to a colleague. For Ste- his dedication Albrecht shows Holger fan, a teenager from Munich’s Hasen- bergl district, every step he takes here must almost feel like he’s walk- lack of education and socially prob- ter the war. In the 1960s, low-income ing on the moon. “For youngsters like lematic behavior. Eighty percent of housing was erected here. Fourteen him, we really come from a totally dif- the parents are unskilled, and 40 per- percent of the population of Hasen- ferent world,” says Holger Albrecht. cent are illiterate. “We look after the bergl-North receives unemployment Albrecht, 51 years old, is Stefan’s first people who have fallen through the benefits (called “Hartz IV”). (In contact during the internship. He has social safety net,” says Dörthe Friess, Munich as a whole, it’s just 6 per- worked in IT at Burda since 1994. Training Director at Lichtblick. “These cent.) The economy of the Bavarian In 2007, he started volunteering with are not college dropouts, but people capital may be hot and have created Project “Lichtblick” (Ray of Hope). who were born and have grown up as a force field that reaches as far as In- This initiative, focused on Hasen social outsiders.” golstadt, Augsburg and the foothills bergl, is devoted to the socially mar- of the Alps, but in Hasenbergl, life is ginalized. The organization of the Help for real life tough. It is a strange situation, a sta- Catholic Youth Agency supports 130 Hasenbergl-North, with its 14,000 ble vacuum. In the afternoon, barbe- children, teens and young adults, in- inhabitants, is on the outskirts of cues can be seen smoking on the cluding Stefan. Generally, their fami- Munich. The district grew out of a grassed areas between the apart- lies are dealing with not just one World War II prisoner-of-war camp ment blocks; men in tracksuits sit on problem, but at least three: poverty, that was used to shelter refugees af- park benches and stare into the void.

74 BURDA Annual Report BURDA Annual Report 75 praise: “The people here are friendli- motely, as he takes over control of er than in school. They have already the defective computer and lets his learned that it’s pointless to fight. mouse wander over the setting This is my best internship so far.” Hol- menus as if controlled by a ghost. “I ger Albrecht pays for Stefan’s lunch like to help in the background,” says in the canteen and gives him some Albrecht. “My motto is: ‘Do good and collegial advice. As team leader in the keep quiet about it.’ I don't want to be Support Center, Albrecht looks after admired, I want to help.” Holger Albrecht IT at Burda. His office is on the sec- teaches the children ond floor of Building 29. Standing on Win-win-win situation everyday skills: how to write an invitation, his desk are three screens: a Mac He describes his own contribution to how to use a brows- computer on the left, the ticket sys- Lichtblick as “modest,” but the word er or Facebook “ The gratitude tem in the middle displays his current is better applied to him personally. tasks, and the e-mail program stands Since 2007, Albrecht and his col- you get is some- open on the right. Albrecht and his league Marcus Janietz have support- thing different four colleagues handle between 40 ed the program. They give two to four than when you and 80 requests a day. When a print- courses a year, during which they are paid to help.” er gets jammed somewhere, a new train children or adults to use com- mailbox has to be set up or a smart- puters. Each course consists of five phone needs syncing, the mechanical one-hour or 90-minute units. Per engineer has the solution. Often re- year, that's 30 hours in Hasenbergl, Holger Albrecht shows his dedication Albrecht shows Holger

plus travel time. The courses are very tude you get is something quite dif- different areas for the general good basic: it can take hours until all par- ferent than when you are paid to and social cohesion. We’d like to hon- ticipants can move a mouse and help.” As their employer, Burda sup- or this tremendous and important open Word. The course goals are ports Albrecht’s and Janietz’s partici- commitment outside the workplace.” very down-to-earth: write an invita- pation. Their activities in Hasenbergl It’s a win-win-win situation: Albrecht tion or an application, use a browser are facilitated because the trust- is glad the courses achieve some- or Facebook. “Our target group are based work schedule allows flexi thing. The media company Burda people who have a lot of trouble tak- bility. “I’m thankful for the leeway,” benefits from employees who take ing advantage of opportunities for says Albrecht, “because after part in the life of society and not just learning,” says trainer Dörthe Friess, 6 p.m. I’d never get a youngster to observe it. And Stefan? He has “but they all go to Mr. Albrecht and learn anything.” gained confidence and made new Mr. Janietz, because they can put Christoph Diebenbusch, Director plans: after high school, he wants to their new skills to use immediately.” Human Resources at Hubert Burda train as an IT systems technician. “I One time, the positive learning expe- Media, considers the commitment of like computers,” he says. Holger Al- rience apparently gave a group of Holger Albrecht and numerous other brecht nods in satisfaction, lays his Tamils the confidence to begin Ger- employees of the company exempla- napkin down on the tray and goes man lessons. “The courses are fun ry. “They not only perform well on the with Stefan – back to work. for me,” says Albrecht, “and the grati- job but often volunteer in all kinds of

76 BURDA Annual Report BURDA Annual Report 77 KATHARINA ZWANZIG IN CHARGE

You can count on her For Katharina Zwanzig, every day is payday. As Burda’s Corporate Treasury Director, she is responsible for liquidity and thus for the company’s ability to face the future. With out her support, many projects would go nowhere. We pay a visit to Burda’s Treasurer Zwanzig’s fondness for numbers is revealed in her signature. Here, her initials: “K20” (“Zwanzig” being German for “twenty”).

The day begins with lthough he may not have reading financial market the slightest interest in fi- updates, which is often followed by meetings A nance, Karl Lagerfeld has made it to the Treasury Department, at least indirectly. Three of his large- format black-and-white photographs decorate the Munich office of Katha- rina Zwanzig, the firm’s Treasurer. The fashion czar might be said to be On the Treasury team, Zwanzig is mainly responsible for relations with banks, which means frequent visits to looking over the shoulder of the fi- Frankfurt, Germany’s financial capital – just a few kilometers from her home office in Bad Homburg nancial expert as she works. But in terms of attitudes and ideals, there are worlds between them. “I throw money out the window, be- get used to working with big num- trust her know-how and give her lee- cause then it comes back in through bers.” Dealing with amounts in the way. Despite, or maybe because of, the door,” Lagerfeld once casually re- tens and hundreds of millions has the enormous responsibility, trust is marked. Zwanzig has a somewhat been Zwanzig’s day job for years. Be- vital in this job. “Ultimately, we are on more complex relationship with mon- fore developing the Treasury Depart- the line for loans in the high three- The Treasurer regularly visits

ey. For the last four years, the ment at Hubert Burda Media, she digit-million range,” Zwanzig says. all Burda IN CHARGE ZWANZIG KATHARINA 39-year-old has been in charge of the worked as a client advisor at a major subsidiaries Treasury Department at Burda – the bank. She sees her career path as a Naked figures financial heart of the company. Put fortunate accident. After 10th grade, When money counts at the company, simply, the woman from Bad Hom- Zwanzig decided she had been the Treasury Department probably burg, with her staff of three, is there taught enough theory, and launched has a role to play. That’s the case for to make sure that the company (and herself into an apprenticeship. “Bank- editors’ salaries, investments in the its 200 subsidiaries) stays solvent. ing was quite a popular choice in hotel rating portal Holidaycheck or “At the push of a button, we can see those days,” she says. This trainee VAT payments for the Cyberport all 600 worldwide accounts on our stint led her to discover that working technology webstore. Each member screen and know exactly what pay- with numbers could be fun. of the Treasury Team has a special ments have to be made and when,” During the financial market crisis, in area. The Director is mainly responsi- says Zwanzig. One of her team’s 2009, she switched sides. It was a ble for relations with the banks: “I tasks is to ensure that all salaries are new challenge for her and an impor- make it clear to the banks that we are paid promptly and that any proposed tant gain for Burda – until then with- a partner worthy of their trust.” To projects can be financed with low- out a treasurer. As her first official prove it, Zwanzig shows the banks cost loans. act, the former banker conducted a company earnings and projections: Pretty big responsibility, isn’t it? financial inventory of the whole com- “The strongest argument is the naked Zwanzig thinks the question over and pany. Who had borrowed how much figures.” The banks have to be able to then nods in agreement. “Yes, it is. from whom? What could be opti- rely on them. “That’s the main thing. Errors are not allowed, because there mized? During this process, the And with us, they know they can.” is too much at stake. Fortunately, you Board Member for Finance came to Which projects get funded is decided

80 BURDA Annual Report BURDA Annual Report 81 Trust and responsibility Zwanzig appears even-tempered. Perhaps that’s the result of her good work-life balance, despite the con-

Zwanzig and her team make sure Hubert Burda stant traveling. Instead of spending Media and its 200 subsidiaries remain solvent hours stuck in the Friday rush hour, she will drive from Offenburg or Mu- nich to Bad Homburg on Thursdays and spend Fridays working in her home office. “That a company can be by the Executive Board. Zwanzig is laptop, her day always begins in the so flexible is by no means something there to propose a financing strategy. same way: reading daily bank reports. you can take for granted,” comments “Once a year we have a thorough re- What is the state of the financial mar- Zwanzig, after two decades of busi- The financial markets are important for view of how we want our financing to kets? What has happened on the cur- ness experience. Burda, even though the look,” she explains. On that basis, she rency markets overnight? She manages her department with Treasury company is not listed on the stock exchange then negotiates loans with the banks When trading currencies, Zwanzig the same combination of responsibili- IN CHARGE ZWANZIG KATHARINA What the treasurer and makes decisions on currency will pick up her phone when she sees ty and confidence with which she is to a sport or hob- trading. an attractive rate, call one of the conducts her own job. It’s a quality by club, the treasury What Zwanzig likes about Burda is banks and quickly order a couple of her team members value. “The team is to a global company. The Corporate that the focus is not on short-term million dollars. Nothing to it! Only in relationship is good, and the commu- Treasury looks after profit maximization, but rather long- India is it a bit more expensive, be- nication paths are short,” says Robert all financial issues. term strategies. “As a family-led com- cause Indian rupees cannot simply Blechinger, the team member re- Its responsibilities pany, Hubert Burda Media tries to be be moved from one place to another. sponsible for liquidity planning. include cash, liquidity and risk as independent as possible, even “Indians need a permit and a stamp Even after work, Zwanzig maintains management. from banks,” she explains. As in all to transfer money,” Zwanzig explains. her passion for prices and markets. If Group areas, any lending institutions Since BurdaInternational is currently she watches the news, she immedi- the Treasurer works with must match actively involved in 17 markets, this ately considers the potential conse- the Burda philosophy. job is never boring. quences for the company. Since her Direct personal contact is important To balance this tremendous respon- marriage, she displays her affinity for for Zwanzig. As a result, she travels a sibility – and the even more tremen- numbers with her surname, which is lot. She regularly visits the subsidiar- dous numbers – she runs several also German for “twenty”: e-mails are ies, negotiates with banks and times a week. Occasionally, she’ll en- signed “Katharina 20” and her busi- checks in often with the Executive ter a half-marathon. The time for her ness initials read “K20.” As the digital Board. She commutes between her most recent effort: two hours and transformation of Burda continues, offices in Offenburg and Munich and eight minutes. Among hobby runners, she already knows how she could her home office in Bad Homburg. But the magic number for completing adapt to the change: “Perhaps I wherever she is sitting in front of her those 21 kilometers is just two hours. should make it ‘K2.0,’” she laughs.

82 BURDA Annual Report BURDA Annual Report 83 abcde fghijk The Burda alphabet lmnop qrstuv wxyz Bonago BurdaDruck BurdaNews Burda Style Cinema combines innovative solutions for motiva- is one of Europe’s largest printing compa- reaches a total of 13.5 million readers – is the biggest creative magazine worldwide is Germany’s oldest film magazine. The tion – in the form of coupons, prizes and nies, with production locations in Offen- predominantly men (MA 2014/I). The al- and, at the same time, an independent lifestyle magazine is produced by film lov- incentives – with well-founded consulting burg, Nuremberg, Vieux-Thann and New liance forged in 2010 with Focus Magazin fashion brand. It is published in 17 lan- ers for film lovers. Every month, Cinema A on incentivizing customers, sales partners Delhi. BurdaDruck sets itself apart with Verlag, Verlagsgruppe Milchstrasse and guages and more than 100 countries, offer- presents every film playing in theaters in and employees. personal consulting, Playboy Deutschland Publishing has loca- ing a complete collection every month for Germany or appearing on DVD/Blu-ray, as Asia excellent print qual- tions in Munich, Hamburg and Berlin. sewing and inspiring creativity in fashion, well as the latest games, with extensive dis- is one of the key growth markets for ity, precise order BurdaNews considers itself an integrated style and decor. At Burdastyle.de, interested cussion. The editorial staff visits actors and Bunte BurdaInternational. The country subsid- processing and on- media house that creates journalistic con- readers can view DIY video clips, download filmmakers behind the scenes, reporting iaries in Singapore, Malaysia, Hong Kong, is the strongest publica- time delivery. tent across media formats and groups new the latest sewing patterns and share with and interviewing them. Together with TV Taiwan and Thailand publish numerous tion in the people seg- revenue models around them. the global community. Spielfilm, Cinema awards Germany’s largest magazines in the luxury segment. These ment, with 540,297 cop- BurdaNews bundles the following audience film prize, the Jupiter Awards. BurdaIntermedia include the Prestige and August Man brands. ies sold (IVW I/2014). brands: Focus, Focus-Money, Focus-Gesundheit, BurdaTech Exclusive stories, the best bundles key components of Burda’s cross- Focus-Diabetes, Fit for Fun, Free Man’s World, Computeruniverse contacts with German and media activities and takes a proactive ap- TV Spielfilm plus, TV Schlau, Cinemaand Playboy. is the umbrella under which the Group international stars, and proach to growth markets beyond the tra- bundles successful B2C companies that is one of Germany’s top online shops for high-quality productions have made it re- ditional magazine business. offer users orientation in the digital electronics equipment, with a selection of BurdaServices quired weekly reading for decades for any- BurdaIntermedia manages a portfolio of world. These include Chip, Cyberport and over 150,000 products. In April 2014, the one interested in the world of the stars. 120 digital offerings, including Bunte.de, concentrates on diverse services for Computeruniverse. comparison portal Testsieger.de named With its presence in print, online, mobile MeinSchoenerGarten.de and DasKochrezept.de, as individual Burda profit centers and com- Computeruniverse.net the best store to purchase apps and IP TV formats, Bunte is the largest well as the accompanying merchandising, prises HR, internal and external account- a notebook from. people medium in Europe. Every year, Bunte mobile, social media and e-commerce of- ing, procurement, and property manage- recognizes rising talents in film and fash- ferings. Full-video brands such as Focus TV ment. BurdaServices is a competent and Cyberport ion with the New Faces Awards. and Bongusto as well as the Musicstarter music efficient service provider that is a long- label also belong to BurdaIntermedia. term partner for customers. is one of Europe’s lead- Bambi B ing suppliers of technol- BurdaCreative is Germany’s most im- ogy and lifestyle prod- BurdaInternational BurdaSolutions C portant media prize and advises marketing decision-makers on ucts, with around 2 Career and family has been awarded to in- long-term brand and customer communi- publishes around 300 magazines as supports Burda colleagues effectively across million customers. The dividuals for outstanding cation with unique content and media. As a well as many digital media products and is locations on issues of IT services and sup- can be easily aligned with support from company pursues a pio- achievements for more than 65 years. The content marketing expert, BC develops active in 17 countries worldwide. port. The technology experts are also the Burda. The goal is a smooth return to the neering multichannel concept – operating Bambi jury, which consists of Burda Editors- these into concepts for media and cam- BurdaInternational is a leader in Central contact for networks, SAP and event tech- working world after parental leave, and an online store as well as 13 brick-and- in-Chief and experts from the entertain- paigns for these decision-makers and im- and Eastern Europe, and has built up a nology. BurdaSolutions manages the individualized solutions as well as child- mortar locations currently – making it one ment, music and film industries, honors plements them. BurdaCreative has loca- comprehensive portfolio in Asia with a procurement, installation and disposal care offerings, such as the Burda Bande, of the largest and most successful retailers prizewinners in a variety of categories. tions in Munich, Hamburg and Berlin, focus on the luxury segment. More than of hardware. make it happen. in the German-speaking network. Winners in 2013 included Bill and Melinda and is building a growing agency network 2,600 people work for BurdaInternational. Gates, Robbie Williams, Miley Cyrus, and together with Seven (UK), Alert (Switzer- BurdaStyle Chip Czech Republic Helene Fischer. land), Newmen (Russia) and Germany’s BurdaLife Wunder Media Production, which Burda reaches more than 8 million women with is the top advisor for digital products. The currently boasts more than 36 Burda titles, acquired in early 2014. is the largest of the three domestic publish- its magazines Bunte, Freundin, Instyle, Elle, Burda media house’s portfolio includes magazines including successful editions of Elle and BCN ing units at Hubert Burda Media, with Style and Donna. It is Germany’s biggest me- such as Chip, Chip Foto-Video and Chip Test & Instyle. With around 340 employees, Burda is Burda’s central, internationally scalable more than 15 million readers (MA I/2014) dia provider for fashion and entertain- Kauf. In addition, the company develops is one of the largest media houses in the BurdaDirect advertising sales organization and con- and 50 periodicals. In 2013, BurdaLife ment. BurdaStyle has been publishing apps, mobile offerings, specials and DVDs. country and the market leader in exclusive nects brand worlds from commercial en- is the expert for cross-media performance sold around 200 million copies of its mag- Harper’s Bazaar in Germany since August According to AGOF internet facts 2014- women’s titles. terprises with the theme and brand worlds in customer management and e-commerce azines (source: MZV). BurdaLife publishes 2013 in a joint ven- 01, Chip Online reaches 14.96 million unique of Burda and external clients. BCN uses services. BurdaDirect develops profitable magazines in both the general as well as ture with US media users per month. Chip also operates one of innovative organization to precisely align e-commerce solutions, cross-media dialog special interest areas and holds large company Hearst. Europe’s largest technology test centers. itself with market needs. Its expert teams marketing and CRM, as well as targeted market shares in the garden (60%) and cover three central interfaces: companies online marketing measures. food (46%) categories (IVW 2013). Christian Liebig Foundation that advertise, media agencies and media offerings. This creates the right cross-me- was founded in the name of the Focus D dia and cross-technology communication reporter killed in 2003 in the Iraq War. Das Haus solutions based on demand. The charitable foundation builds schools for needy children in Africa is Europe’s top homes and living magazine, to help them have a better future. with 1,608,050 copies sold (IVW I/2014). Das Haus is a modern how-to manual on the topics of building, living and lifestyle improvement. It is published 10 times a year and sold almost exclusively by subscription.

86 BURDA Annual Report BURDA Annual Report 87 a b c d e f g h i j k l m n o p q r s t u v w x y z DasKochrezept Elitepartner France Freundin is an online food portal with over 87,000 is the online dating service for educated, is home to three Burda publishing units is a reliable companion for young women recipes. The user-generated content is sup- cultured singles looking for a long-term that bring out a variety of publications such in any situation. The twice-monthly mag- plemented by recipes from Burda print relationship. Elitepartner is the first online as the gourmet brand Saveurs, mystery magazine supports, entertains and reflects magazines and pay-TV channel Bongusto. dating service to be awarded the TÜV seal. F azine Le Nouveau Detective, country magazine real life. It offers reading enjoyment, a Since November 2013, a magazine of the The Elitepartner magazine is one of the big- Esprit d’ici, Burda Style and other titles. source of inspiration and advice. Freundin Felix Burda Foundation Harper’s BazaarH same name collects the most popular reci- gest advice portals on the subject of singles shows what makes life better and easier: pes and presents them professionally. and relationships. is devoted to the prevention fashion, beauty, good food and a home to is a zeitgeist barometer, offering surprising Frau im Trend of colon cancer. It was feel comfortable in. perspectives on fashion and style as well as launched in 2001 by Dr. Christa Maar and is the up-to-date, illustrated info magazine extraordinary experiences in beauty, life- DLD Elle Prof. Dr. Hubert Burda in the name of for women who actively modernize and take style and culture. Harper’s Bazaar speaks to is Burda’s international conference and is one of the biggest and best-known media their son who died of colon cancer. Its proj- control of their lives. It has a circulation of cosmopolitan women who live in uncon- innovation platform and presents Europe’s brands in the world. Elle sets trends in ects include March as Colon Cancer Aware- 287,715 in the weekly women’s magazine ventional luxury and women who retain leading digital conference DLD and fashion, beauty, culture, travel and life- ness Month as well as the Felix Burda Award. segment (IVW I/2014). With its high user the best characteristics of youth: curiosity, women’s conference DLDwomen as well as style. For 25 years, the editorial team value and emotional appeal, it accompanies tolerance, willingness to learn, love of international network events in Palo Alto, at German Elle has been seducing readers its readers through their lives. beauty, and dynamic energy in body and Finanzen100 Tel Aviv, New York and Beijing. with elegant and avant-garde fashion and soul. Burda has been publishing the beauty productions with international provides Germany’s most comprehensive German edition of the international fash- Free Man’s World models and renowned photographers. In analysis of stock market and economic ion brand magazine since August 2013 Donna addition to German Elle, Burda publishes information. The portal presents a clear is the adventure magazine for men. It in a joint venture with Hearst Magazines inspires self-confident women over 40 with the homes and interior-design magazine overview of all market prices, news, stands for a freedom-loving lifestyle and International. Glam MediaG a comprehensive mix of fashion, beauty, Elle Decoration, as part of a joint venture with forums, blogs and insider data from over gives guidance for escaping from the every- lifestyle, psychology, partnership, health, Hearst Magazines. 12,500 hand-picked sources worldwide. day working world. Award-winning jour- is a pioneer for vertical online content and Holidaycheck culture and travel. In early 2014 Donna grew Thanks to the intuitive usage and user- nalists report on extraordinary journeys, has been associated with Burda since 2008. up and made the transition from an exten- friendly design of the iPhone and Android experiencing nature and the best way to In partnership with BurdaInternational, operates the largest online German-lan- Employee development sion of Freundin to an independent brand apps, Finanzen100 leads the mobile market. find your bearings once you’re there. the company is launching Glam Media guage hotel rating portal, with over 10 with its own logo. is essential for the successful advancement Russia in 2014. million reports and around 150,000 visi- of employees within the company in a tors each day. Due to growing international Fit for Fun Freizeit Revue professional world influenced by change. demand, the vaca- Goldene Henne Burda offers a variety of management and is Germany’s top fitness and lifestyle is the number-one tion platform is now specialized-knowledge programs, as well as brand. The magazine provides entertain- leisure and entertain- is Germany’s biggest audience award and available in 10 lan- continuing-education opportunities, in the ing and well-researched reporting about ment magazine, with has been bestowed since 1995 in remem- guages. areas of expert knowledge, methodology important and interesting topics in the ar- 801,055 copies sold brance of Berlin entertainer Helga and personal development. eas of exercise, nutrition, lifestyle, health (IVW 1/2014), leading the market in circu- “Henne” Hahnemann, who died in 1991. Hubert Burda Foundation and beauty. In addition, Fit for Fun actively lation and quality in the weekly entertain- Super Illu magazine joins MDR and rbb to supports its readers with DVDs, e-books, ment magazines segment for women. For recognize the most popular stars of the year is the umbrella organization for almost all Environment and sustainability seminars, travel and suitable licensed 44 years, this entertainment original has in the categories of TV moderation, acting, of publisher Prof. Dr. Hubert Burda’s play an important role because business ac- products in retail – for example, bikes, delighted around 2.8 million readers every music, sports, politics, charity and lifetime charitable activities. It was founded in 1999 tivity and social responsibility are inter- sports equipment or even muesli – for week. People experience it through a vari- achievement. After 19 years in Berlin, the and supports projects in science, educa- Edelight E twined at Burda. Our policy is “sustainable maintaining a healthy lifestyle. ety of formats including reader trips, puz- 2014 Goldene Henne will be held in tion, art and the humanities. These in- supports people in making purchasing de- development.” For Burda, this means de- zle apps, monothematic line extensions, Leipzig for the first time to celebrate the clude the Petrarca Prize and the Felix Burda cisions as a social commerce portal. The velopment that meets the needs of the cur- online presence and social media. award’s 20th anniversary as well as the Foundation. Focus company uses the experiences from its end- rent generation without the risk of endan- 25th anniversary of the peaceful revolu- customer portal, Edelight.de, to provide other gering future generations – this includes reaches around 5 million tion. businesses with innovative e-commerce so- the use of modern technologies in produc- readers and sells more lutions. At the core of these activities are tion, for example. than 500,000 copies per Guter Rat the visual search Stylefinder and the premium week. The magazine provides background partner network Tracdelight.com. information and opinions on current news is the best-selling business and consumer- as well as advising its readers on solid advice magazine in Germany, providing I courses for action. Focus is future-facing orientation and decision-making assistance India and offers constructive criticism – similar for personal budget management: from fi- to the Focus Online Internet portal that nancial investments, insurance and prod- is an important location for Burda in the counts as one of the top three broad-cover- ucts to health and nutrition. printing field as well as for BurdaInterna- age news offerings in Germany as part of tional. In addition to the printing facility Tomorrow Focus AG. In addition to the established in New Delhi in 2010, several news magazine, the Focus family includes luxury titles such as Millionaire Asia and Asia the successful line extensions Focus-Diabetes, Spa have been published here since the Focus-Gesundheit and Focus-Money. Focus TV pro- acquisition of EMM India in June 2013. duces TV formats such as Grip – Das Motor magazin (RTL II) and Eins gegen Eins (Sat.1).

88 BURDA Annual Report BURDA Annual Report 89 a b c d e f g h i j k l m n o p q r s t u v w x y z Instyle Lisa Mein schönes Land Neue Woche Poland StarnetOne embodies the original concept of all star is Germany’s popular women’s magazine sits comfortably in second place in the is the modern, up-to-date people magazine is Germany’s neighboring country and has specializes in the creation, production and fashion magazines and is the market leader and uses strong interaction and reader in- hard-fought country segment, with with star stories and exclusive interviews, become even more important for Burda af- marketing of media events: Bambi, the char- among the monthly premium titles for volvement to create closeness, topicality 354,296 copies sold (IVW I/2014). Mein trends and styles from fashion and beauty, ter the acquisition of the G + J portfolio in ity event Tribute to Bambi and the Bunte New women. For around 1.3 million women, and a high degree of editorial credibility. schönes Land has successfully established a living and food, as well as advice articles on 2013. Burda is among the top three maga- Faces Award are among its excellent stagings. Instyle is the monthly shopping list and gives The Lisa brand family is very successful, growing brand family with line extensions health, legal questions and partnership. zine publishers in market for readers and The brands of collaborative partners are valuable inspiration and detailed service. with line extensions in the areas of garden- such as Meine gute Landküche, Mein schöner advertising. Among the 49 titles published integrated in an emotional and media- Since 2010, Instyle Men has offered a mascu- ing, cooking and baking, and living and Landgarten and Mein schönes Landhaus. here are the successful global brands Elle, effective way using custom, cross-media line equivalent of the style magazine. decorating, in addition to numerous li- Instyle and Glamour. communication approaches. censed editions in Europe and Asia. Meine Familie & ich Super Illu is Europe’s biggest food and gourmet mag- Lust auf Genuss azine, an indispensable companion and is the most widely read newsstand magazine is the magazine for the gourmet communi- advisor for family managers. The number- in the former East German states, reaching ty and turns cooking into an exceptional one magazine in the food segment, with a more readers there than – for example – J experience. Readers who like to experi- circulation of 372,836 copies sold (IVW R “Der Spiegel”, Focus and “Stern” combined ment and lifestyle-oriented gourmets find I/2014), reaches 0.99 million readers (MA (MA 2014/I). The modern home-and- Jameda Romania inspiration here in innovative and ex- I/2014) and is uniquely located in stores – family magazine reports on the East Organize.meO is Germany’s largest doctor-recommen tremely high-quality visuals. Lust auf Genuss Meine Familie & ich is sold directly at the regis- represents an important market for Burda, Germany of today and tomorrow without dation website. More than 3.5 million has premium placement at cash registers in ter in food retail stores. helps people perfectly organize their own with 35 titles (including Harper’s Bazaar) and forgetting the past. patients use Jameda every month to search food retail stores. document storage. The innovative online more than 40 online offerings. After for the right doctor. Around 250,000 doc- service stores personal and business docu- acquiring Sanoma Hearst, Burda is now Meteovista tors throughout Germany are listed in the ments like a personal assistant and auto- one of the country’s biggest magazine database. has developed since 2001 into the leading matically creates logical folder structures. publishers. B2B and B2C provider of meteorological data and services in the Netherlands and Russia Europe. Meteovista’s website offers every T imaginable type of information and fore- has been very signifi- The Huffington Post casts about the weather. cant for Burda ever since Burda Style be- is a platform for opinion articles and blogs came the first West- as well as an online community. It encom- K ern magazine pub- passes a mixture of exclusive content and P lished in the Soviet guest editorials on politics, business, en- Kazakhstan Media MarketM Insights Petrarca Prize Union, back in 1987. tertainment, lifestyle and technology. is an important market for BurdaInterna- is Burda’s central market-research unit and is presented annually by Hubert Burda and Now, Burda is the broadest-coverage pub- tional. The Burda-Alatau Press company is advises the profit centers on all research a jury to recognize European literature. lisher, with 400 employees and interna- Tomorrow Focus AG a major magazine provider in the country. questions related to editorial offerings, N The Petrarca Prize was presented to contem- tional brands, such as Playboy and Revolution. It has more than 90 employees publishing sales questions, advertising appeal and porary poets and translators between 1975 is one of Germany’s Netmoms over 70 titles, including the Kazakh edi- marketing, as well as questions about media and 1995, and was resumed in 2010. leading publicly traded tion of Lisa, automotive magazine Avtomir use and trends. is Europe’s first parenting portal, with Internet groups. The and timepiece magazine Revolution. websites in Germany, Poland and Spain. It company has approxi- Playboy offers high-quality information, fast shar- mately 750 employees Mein schöner Garten ing, ease of use and appealing product is the premium lifestyle magazine for and is active in the travel, publishing and reaches 2.22 million tests. As such, Netmoms addresses the men. “Everything that men enjoy” is the subscription segments. readers (MA I/2014), key needs of women and mothers who core message. Playboy takes a position on S making it Europe’s are active online. the most important contemporary issues Showroom.pl Training top garden magazine. without neglecting entertainment. Every L For over 40 years, it has stood for editorial month the editorial staff orchestrates a is an innovative e-commerce project from forms a key pillar in our efforts to fulfill expertise in the market. Its broad-coverage world that interests men with erotic pho- BurdaInternational – and its successful on- the need for qualified employees from Lidyana.com online presence unites a large community tography, honest reporting and inter- line fashion shop has made it a poster child within our own ranks as well: Burda’s is one of Turkey’s leading online shopping with e-commerce and social media chan- views, combined with topics from every- for the Polish fashion industry. In a short trainee program or a course of study at the websites. BurdaInternational is its biggest nels. day lifestyles. period of time, Showroom.pl has become Burda School of Journalism offers entry- shareholder, with approximately 24 per- the biggest Internet platform for up-and- level career opportunities for next-genera- cent. The platform was coming labels. tion employees. Talented young people also recognized in 2012 by have the opportunity to complete appren- the prestigious US mag- ticeships or integrated degree programs at azine “Wired” as one of Burda. Europe’s 100 hottest start-ups.

90 BURDA Annual Report BURDA Annual Report 91 a b c d e f g h i j k l m n o p q r s t u v w x y z Tribute to Bambi Foundation Ukraine is an initiative by Bunte magazine with the has been an active market for Burda since goal of providing needy children and ado- 1997. Today, the company is the largest lescents with concrete, long-term help – magazine publisher there, with 300 em- regardless of nationality, social status or ployees. It leads the market in the women, X religion – and bringing lasting improve- parenting, automotive and food segments, Xing ment to their lives. The foundation sup- among others. ports projects in Germany that receive lit- is the social network for professional con- tle or no government assistance. tacts. More than 14 million members use The USA the Internet platform worldwide for busi- is where Burda collaborates with F+W ness, job and career, with 7 million of Turkey Media to publish Burda Style magazine. With those in German-speaking regions. Xing is home to the Dogan-Burda Group, one of its community of half a million active sew- AG has been publicly traded since 2006 the country’s leading magazine providers, ing enthusiasts, it is the center of a brand and has been listed on the TecDAX since in which Burda holds 48.61 percent of the world of courses, videos, e-commerce and September 2011. shares. The portfolio includes 70 maga- online services. zine titles as well as numerous online and mobile offerings.

TV Spielfilm plus brings together the TV and media magazines TV Spielfilm and TV Today. Back V in 1990, TV Spielfilm Valentins launched the segment of programming guides that appear every 14 days, and it’s is the likable young online Zooplus Z also a digital pioneer today. TV Spielfilm’s flower-and-gift delivery program information offerings both on- service. As a direct retail- is the reliable line and on mobile devices are by far the er with excellent value for money, Valentins is partner for pur- most commonly used (see “AGOF internet one of the leading and best-known online chasing pet food facts,” “AGOF mobile facts”). Competent, florists in Germany and Austria, with years and accessories critical and independent program reviews of experience and a constantly growing, in- online. Its exclu- make TV Spielfilm plus Germany’s most popu- novative range of products. sive selection, with over 8,000 products lar media brand in the segment with cross- for dogs, cats, etc., makes the company the media format. market leader in Germany. Zooplus ships to over 23 countries.

Zoover W is the Netherlands’ largest hotel- and travel-rating portal, offering online infor- Wohnen & Garten mation on hotels, sightseeing and camping delivers inspiration for sophisticated sites. Zoover is active in 25 countries. living in the home and garden. With 261,115 copies sold (IVW I/2014), the magazine is the market leader in total The UK U sales for monthly homes magazines. is the market where Burda publishes lead- It uses emotional and opulent imagery ing consumer magazines, including Your to portray home in a comfortable, feel- Home, Wedding, Wedding Flowers, LandLove and good atmosphere. Essential Kitchen.

92 BURDA Annual Report o n e h u n d r e d t w o t h r e e f o u r f i v e s i x s e v e n e i g h t n i n e t e n e l e v e n t w e l v e t h i r t e e n f o u r t e e n f i f t e e n s i x t e e n t h o u s a n d s e v e n t e e n e i g h t e e n n i n e t e e n t w e n Financial Statements t y t w e n t y o n e t h o u s a n d t 2013 w e n t y t w o t e n t w e n t y t h r Hubert Burda Media Holding e e t w e n t y f o u r t w e n t y f i Kommanditgesellschaft v e t w e n t y s i x t w e n t y s e v e n t w e n t y e i g h t t h o u s a n d t e n h u n d r e d t h i r t y t h i r t y o n e t h i r t y t w o t h i r t y t h r e e t h i r t y f o u r t h i r t y f i v e t h i r t y s i x f i f t e e n t h i r t y s e v e n t h i r t y e i g h t t h i r t y n i n e t h o u s a n d n i n e f o u r t e e n o n e h u n d r e d t w o s e v e n e i g h t n i n e t e n e l e v e n t w e l v e o n e t h o u s a n d f o u r s i x t w e n t y s e v e n f o r t y o n Five-year overview

2009 2010 2011 2012 2013 in

Operating performance 2,221 2,323 2,804 3,101 3,249 million € Consolidated sales 1,587 1,721 2,176 2,456 2,617 million € comprising Digital 487 587 937 1,159 1,401 million € Domestic Publishing 669 669 658 646 630 million € Foreign Publishing 301 331 385 419 378 million € Printing 123 128 189 224 204 million € Other 7 6 7 8 4 million € Financial Statements 2013 Statements Financial Balance sheet total 1,084 1,136 1,313 1,546 1,551 million € Depreciation of fixed assets 46 51 56 69 83 million € Personnel expenses 362 371 410 438 499 million € Number of employees at year’s end 7,118 7,637 8,248 9,241 10,017

96 BURDA Annual Report BURDA Annual Report 97 +6.6 % External sales growth for fiscal year 2013 compared with fiscal year 2012

Group Management Report

Burda in Fiscal Year 2013 – Overview Overall economic situation

Hubert Burda Media (hereafter also referred to as “Burda”) is adjustments in the magazine business; and the development International Germany an internationally operating media company with brands and of new businesses fields in gravure printing. New products in products that are oriented to the needs of consumers. With the market included 12 magazines for the German market, Whereas the first half of 2013 was characterized by uncertainty The German economy turned out to be stable on average in 2013 about 440 printed and digital media products, Hubert Burda 44 magazines in foreign markets and a number of digital pro- in various areas – the US budget dispute, the weakening trend and is in a good position compared with the crisis countries in the Media is either striving for or already holding a leading market ducts such as the technology-based Huffington Post from a in emerging economies and the continuing debt crisis in the Eurozone. Although it could not continue the strong growth of the position in various markets. Major sources of Group revenue are majority shareholding investment by TOMORROW FOCUS AG. Eurozone, to name a few – in the second half of 2013, the global two previous years, it showed moderate growth, with a plus in advertising, sales via individual sales and subscriptions, com- Among other places, the portfolio was expanded at the majority economic situation improved. According to estimates by the the price-adjusted gross domestic product (GDP) of 0.4 percent. missions, trade, and services for business customers. Burda holding XING AG, which acquired the social recruiting platform International Monetary Fund (IMF), the global economy grew by The most important growth engine in 2013 was the German pop- considers itself an “enterprise for entrepreneurs” and is orga- kununu and integrated it into the company in 2013. 3.0 percent in 2013, and 3.7 percent growth is expected in 2014. ulation’s willingness to spend. Adjusted for price, private consum- nized with a profit center structure. At the end of the past fiscal Mature economies showed a surplus and are continuing to er spending rose by 0.9 percent. In 2013, the number of persons year, the consolidation group included a total of 234 indepen- follow an upward trend, led by the US. Emerging countries such employed reached 41.8 million, a new high for the seventh year in

dently operating companies, 149 of which were in Germany and as China and India are engines of economic growth supporting a row (source: German Federal Bureau of Statistics). 2013 Statements Financial 85 abroad. At the end of the fiscal year, 10,017 individuals were this trend (2013: 4.7 percent growth; 2014: 5.1 percent. Source: employed in the Group. Hubert Burda Media is divided into four IMF, World Economic Outlook, January 2014). However, most operational divisions: Digital, Domestic Publishing, Foreign Central and Eastern European economies find themselves in a Publishing and Printing. fragile growth phase. This applies particularly to the countries In fiscal year 2013, Burda’s external sales reached €2.62 billion, Russia and Ukraine. representing a 6.6 percent growth in sales over the prior year. The Eurozone has calmed down after two years of recession. Burda was able to maintain the growth momentum of the past However – as is seen from a warning from the IMF with regard four years while continuing to finance this growth from its own to the low inflation and increasing risk of deflation – this recovery resources. Whereas large investments were made in 2012, is still fragile and burdened with significant uncertainty, as it is including, first and foremost, the acquisition of a majority stake based solely on measures and announcements of the in XING AG, the year 2013 was characterized by the setting of European Central Bank. Thus far, the national governments of long-term goals in all divisions. These included several acqui- the Eurozone countries have hardly made any use of the maneu- sitions and new shareholdings in foreign media companies; vering room that the European Central Bank created for them. measures to stabilize and increase revenue, especially in the Group’s own e-commerce companies; portfolio and structural

98 BURDA Annual Report BURDA Annual Report 99 +41.7 % In 2013, 31.7 percent of the German German consumers turned over population were smartphone users. €39.1 billion from online transactions For the age group 14 to 29 years, the of goods in 2013 (Bundesverband number is a full 67 percent. Versandhandel BVH). This represents a record growth of 41.7 percent compared with 2012.

The media industry

The global media industry remains in a fundamental state of Advertising market Magazine market E-commerce change. Digitalization and permanent technological innovations are having a structural effect on all areas of the economy and The global advertising market proved to be stable in 2013. Experts Magazines took up a 7.9 percent share of the global advertising The Internet as a sales channel for products and services is are changing the media landscape throughout the world. are forecasting that growth will rise from 3.6 percent in 2013 market in 2013. Thus, the global magazine business appears becoming more significant on a global level as well. Decisive factors include the increasing access to the Internet to 5.3 percent in 2014 (source: ZenithOptimedia Advertising stable. And in the coming years, despite the increasing shift of In 2013, €39.1 billion was turned over in online transactions and the almost explosive growth of smart devices: in 2013, Expenditure Forecasts). Opportunities for advertising expendi- media budgets toward the Internet and mobile devices, it will of goods (according to BVH, the German E-Commerce and 39.0 percent of the world’s population had access to the Internet ture in the future will be in the international arena, particularly not be possible to replace advertising in magazines (forecast Distance Selling Trade Association). This amounts to record (source: International Telecommunication Union). With about in the emerging markets. For mature markets, ZenithOptimedia market share in 2016: 6.3 percent, corresponding to a decline of growth of 41.7 percent over 2012. The mail-order sales total ben- 1.5 billion smartphones and tablets in use, mobile devices are is forecasting annual growth of only 3.0 percent. By contrast, 1.6 percent; ZenithOptimedia 2014/Statista 2014). If one looks at efited from this, similarly increasing in 2013 by over 20 percent. expected to exceed the number of stationary PCs already by the advertising expenditures in emerging countries – including Russia, the magazine market (professional journals and popular maga- According to BVH, online trade has become a matter of course first half of 2014 (source: Enders Analysis). In Germany, 31.7 per- India and China – will grow by 9.0 percent on average, unless zines) in both print and digital formats (apps, e-papers), this for the German consumer; in the meantime, e-commerce helps

cent of the population used a smartphone in 2013. Among political crises such as the current one in Ukraine significantly market will even recover to a moderate extent on a global level. to meet demand. In particular, the strong development of mobile 2013 Statements Financial 14- to 29-year-olds, the figure was as high as 67.0 percent affect the positive economic trend. Growth in these countries Accordingly, popular magazines will grow slightly by 2017, to devices in the past year has had the effect that more and more (source: best for planning [b4p] 2013). It is expected that by is fundamentally favored by a comparatively low average age, a $83.3 billion (2012: about $82 billion; source: PwC Outlook). consumers are “always on” and use their mobile devices to make 2017, 65.0 million people in Germany – more than 80.0 percent of rising rate of productivity, and investments in the educational According to the 2013 Nielsen gross advertising market analysis, purchases anytime and anywhere. The mobile Internet is cur- the population – will be using the mobile Internet (source: PwC system, infrastructure, and new technologies. These emerging the German advertising market – distributed over all advertising rently the fastest-growing commerce channel. Sales generated German Entertainment and Media Outlook 2013). markets currently account for 35.0 percent of global advertising media – recovered and increased to €22.9 billion in Germany, a through smartphones and tablets have thus increased to The mobile Internet and thus the completely individualized use of investments. According to forecasts, however, between 2013 and 4.2 percent increase over the prior year. However, the magazine €4.9 billion. According to the GlobalWebIndex, the most popular media content is the most dominant trend for media companies 2016, they will grow to 61.0 percent (source: ZenithOptimedia). market shows barely any chances for growth in the traditional products purchased in February 2013, for example, were trips, throughout the world. Another significant development is the Mobile advertising is expected to be the main engine of future sources of revenue (advertising and sales). In 2013, popular followed by books, fashion, music, films, and electronic data- consolidation of editorial or curated content, commerce and growth. With a 2.7 percent share of the advertising market in magazines finished with gross advertising revenue of €2.7 processing hardware (source: GlobalWebIndex, February 2013/ advertising, resulting in the increasing dissolution of traditional 2013, it was admittedly still comparatively low (source: billion (not counting media advertising), a decline of 1.0%. In World Newsmedia Network 2013). competitive constellations. Thanks to digitalization, 84.0 percent ZenithOptimedia/Statista 2014). According to concurring fore- 2013, 1,542 popular magazines appeared regularly in Germany of telecommunication and media companies in Germany now casts, however, this picture will change in the coming years. (source: Association of German Magazine Publishers, “VDZ”). see a sales potential outside their core business. Meanwhile, Since media consumers are increasingly shifting to mobile In the wholesale business, in the case of popular magazines, Increasing prosperity in emerging markets technology companies in particular are increasingly pushing into devices, advertising will also adjust. Revenues from online gross sales revenue at copy prices was €2.24 billion in 2013 the traditional business of the media industry (source: KPMG). advertising on mobile end devices are expected to rise (2012: €2.35 billion). Business in emerging markets will be increasingly important for One can assume that traditional media companies and large by 27.0 percent per year, to a solid $27 billion by 2017 – corre- the future financial success of Hubert Burda Media. Prosperity digital and technology companies will continue to converge on sponding to a 15.0 percent share of total online advertising in these regions is growing with remarkable speed. The number an increasing basis in the coming years. revenue ($185 billion; source: PwC Outlook). However, advertis- of billionaires in Africa and Asia will more than double between The main drivers of this trend are the large US digital companies, ing delivered on mobile devices still needs significant further 2012 and 2022, according to current estimates (source: Knight such as Google, Facebook, eBay, Amazon and Apple, whose development; standardized and media-appropriate advertising Frank). By 2030, two-thirds of the global middle class will reside in activities and enormous financial strength dominate the market. formats and corresponding measuring tools are needed Asia (source: EY). Opportunities to expand the business of Facebook’s takeover of the messenger service WhatsApp at the above all. Hubert Burda Media into new markets are presented not only by beginning of 2014 demonstrates this trend in an impressive way.

100 BURDA Annual Report BURDA Annual Report 101 The consolidated sales of the divisions developed as follows:

2012 2013 Change 53.5 % in million€ in percent in million€ in percent in percent In 2013, the Digital Division gener- Digital 1,159.5 47.2 1,401.0 53.5 +20.8 ated €1,410.0 million in sales, and Domestic Publishing 645.5 26.3 629.9 24.1 -2.4 thus 53.3 percent of total corpo- Foreign Publishing 419.3 17.1 377.9 14.4 -9.9 rate sales (2012: €1,159.5 million, Printing 223.8 9.1 204.1 7.8 -8.8 or 47.2 percent). Other 7.9 0.3 4.0 0.2 -49.4 Sales revenues 2,456.0 100.0 2,616.9 100.0 +6.6

Sales development, net assets and Digital financial situation the existing portfolio, but also by the positive development of The prior year’s positive trend in the sales of the Hubert Burda loans minus liquid assets, minus other securities) is close to the Burda brings together the corporation’s strategic online opera- these growth regions. Media Group continued in this past fiscal year. Again in 2013, level of the prior year (2012: €152.7 million). tions in the Digital Division. Companies include e-commerce and The increasing prosperity in the emerging markets correlates with this positive trend in sales was driven by the Digital Division. The Medium- and long-term capital, consisting of equity, medium- marketing platforms, direct marketing, customer management, the increasing rate of literacy worldwide, which is now 84.0 per- market for the products of the Domestic Publishing Division and long-term accruals, and medium- and long-term liabilities, recommendation and dating portals, as well as shareholdings in cent, compared with 76.0 percent 20 years ago (source: continued to decline. However, sales revenues in Foreign decreased by €52.6 million during the current reporting year, to social media. In addition, digital activities include a joint venture UNESCO). For example, 90 percent of all school-age children Publishing and in the Printing Division were also below the fig- €844.3 million (2012: €896.9 million). This was primarily attribut- investment business and more than 30 direct and indirect invest- in developing regions now attend at least elementary school ures of the prior year. This was primarily attributable to the able to the previously mentioned repayment of credit lines that ments in radio and television broadcasters. (source: United Nations). declines in the wholesale and partwork business, as well as had been used. In particular, the medium-term revolving credit In 2013, the Digital Division generated €1,401.0 million in sales, reduced utilization – in the Printing Division – due to declining lines, which have been approved in the meantime, continue and thus 53.5 percent of total corporate sales (2012: €1,159.5 mil- orders from customers of small-scale printing jobs. unchanged and can be used at any time if necessary. lion, or 47.2 percent). The expansion of successful participating In accordance with expectations, consolidated external sales At a result of the positive business trend and also because of the investments, which was targeted in the previous year, has been

increased by 6.6 percent, to €2,616.9 million (2012: €2,456.0 mil- change in the consolidation group, equity increased by €27.9 mil- implemented and is now also reflected in the trend of sales reve- 2013 Statements Financial lion). Operating performance (aggregate unconsolidated sales lion to €425.9 million. With the balance sheet total only slightly nues, which fulfilled expectations. The Digital Division currently revenues) increased by 4.8 percent, to €3,248.8 million (2012: higher, this increase in equity raised the equity ratio to 27.5 per- runs Hubert Burda Media’s strategic Internet operations within €3,101.2 million). cent (2012: 25.7 percent). six subunits: The consolidated balance sheet total increased slightly by Medium- and long-term capital almost completely cover the €5.0 million, to €1,551.3 million (2012: €1,546.3 million). While fixed assets of the Burda Group (2012: 104.9 percent). fixed assets were close to the levels of the prior fiscal year, The Group has developed in line with expectations and, as in BurdaTech inventory increased by €28.4 million, to €169.1 million, and earlier years, demonstrates sound financial conditions. The receivables rose by €29.5 million, to €370.0 million. financing structure offers adequate flexibility for further BurdaTech consolidates activities in the area of consumer elec- As in the prior year, the increase in inventory and receivables positive development. tronics and uses the Chip Group and the consumer electronics from goods and services was essentially attributable to expan- companies Cyberport and computeruniverse to cover the entire sion of business activity in the area of e-commerce. supply chain, from consultation to transaction. According to the separate fixed-asset schedule, additions to BurdaTech includes the Chip Group as well as participating fixed assets totaled €148.1 million (2012: €308.0 million); total interests in the e-commerce companies Cyberport GmbH and investments affecting cash flow were €132.5 million. A signifi- computeruniverse GmbH. Cyberport GmbH, which operates cant part of this investment total was attributable to the acquisi- throughout Europe, focuses on the German-speaking market. tion of companies and the expansion of the consolidation group. At www.cyperport.de it offers more than 40,000 technology and Group liabilities decreased by €39.2 million, to €661.7 million lifestyle products. By linking the online shop with real-world (2012: €700.9 million). While most other liabilities remained at sales affiliates, Cyperport has become a multichannel company. the levels of the previous year, bank loans were reduced from In 2013, Cyberport opened new outlets in Cologne, Stuttgart €349.7 million (2012) to €306.4 million (2013). This development and Essen, thereby raising the number of sales affiliates in is attributable, in particular, to the increased repayment of draws Germany and Austria to 12. Following an earlier, sharply upward on revolving credit lines, which occurred parallel to the usual trend, growth in sales slowed down significantly in 2013 under scheduled installment payments. At €153.2 million, net debt (bank enormous competitive pressure, ultimately showing only a slight increase. The second commercial enterprise also operating in

102 BURDA Annual Report BURDA Annual Report 103 Around seven million members in the D-A-CH region use XING for business, job and career (2012: 6.1 million members). Worldwide, the portal has 14.1 million members (2012: 12.9 million).

Europe is computeruniverse GmbH. Its online shop at www. years at the latest. In October 2013, TOMORROW FOCUS AG zooplus AG seminar organizers an event management software program for computeruniverse.net includes more than 150,000 hardware, sold all shares of the digital and creative agency TOMORROW online event registration and ticketing. software, entertainment, and household electronics items. FOCUS Technologies GmbH, effective as of December 2, 2013. Measured by sales revenues and overall performance, the Media across the digital world are the core business of Chip. This sale is part of “Company Strategy 2018,” which was exchange-listed zooplus AG is the leading online retailer for pet Its portfolio includes magazines like Chip, Chip Foto-Video, Chip adopted at the beginning of 2013 and which provides for a clear supplies in Europe. According to preliminary figures, the overall Ventures and conferences Test & Kauf and Power Play, which are sold not only through tradi- focus on online-based business models for end consumers in performance of the company grew by 26.9 percent in 2013, from tional sales channels, but also through digital platforms such as the core areas of travel, advertising and subscriptions. €335.6 million in the prior year to €426.0 million, thereby signifi- The five above-mentioned fields of activity of the Digital Division the company’s own online kiosk and the Chip Tablet Edition. The cantly exceeding the goal for the year of €400 million. Sales rev- are closely supported by the organization that holds the re- second important part of the brand is the Chip Online portal, with enues were about €407.0 million (2012: €319.2 million). The knowned DLD events and also by strategic management of its download platform and sales consultation for computers, cell BurdaDirect company zooplus sells a selection of over 8,000 products for participating interests. In 2013, DLD Media expanded its network phones and home entertainment. It is one of the top five German pets. So far, this successful business model has already been again and, in addition to the premier DLD conference in Munich

Internet offerings, with 14.12 million unique users (AGOF internet BurdaDirect is a business-to-business provider in Burda’s digital introduced in 23 countries in Europe. In Germany, zooplus is the and Tel Aviv, organized “Global Events” in Palo Alto and New 2013 Statements Financial facts 2013-II; 2012: 14.8 million unique users). The portal is also far business. BurdaDirect is active in the areas of e-commerce, most popular online shop, even more popular than providers York. “DLD Cities” also took place in London and Rio de Janeiro. ahead in mobile use, with almost 1.8 million unique users (AGOF mobile commerce, dialog marketing, customer relationship man- such as Amazon. This was the finding of a customer satisfaction In the corporate venture investment business, Burda’s goal is to mobile facts 2013-II). In addition, Chip operates its own technolo- agement (CRM), direct marketing, sales and technology, and study conducted in early 2014 by E-Commerce Center Cologne support companies in implementing their growth strategy, in or- gy test center, with more than 1,500 product tests per year. considers itself a full-service provider for the online and offline together with the logistics provider Hermes. der to increase the value of these companies in a sustainable business models of its customers. BurdaDirect’s business is manner. In this regard, the year 2013 was characterized by di- built on three pillars. The first pillar comprises subscription ser- vestments of shareholdings, such as the sale of a minority hold- TOMORROW FOCUS AG vices on the subjects of dialog marketing and publishing servic- XING AG ing in Avenso AG. es. Among other things, the entire subscription business of the Burda is the principal shareholder of TOMORROW FOCUS AG, Burda publishing companies is administered here. The Burda has held a controlling interest in XING, Germany’s largest one of the leading publicly traded Internet corporations in second pillar comprises IT and e-commerce solutions for business community, since 2012. According to preliminary fig- Strategy Germany. The group is active in three segments: travel, publish- online commerce, online marketing, mobile marketing and CRM. ures, the corporate revenues of the publicly traded XING AG ing and subscriptions. On January 1, 2013, TOMORROW FOCUS The third pillar is performance marketing, which includes cross- rose by 15.5 percent in 2013, to €83.3 million. This Internet plat- After years of notable, rapid growth, 2013 was the year in which AG took over all shares of the operator of Netmoms.de, a portal media dialog marketing campaigns, among other things. form for business, jobs and career is used by a total of about Burda Digital stabilized. The primary focus was on increasing the for parents and women. In June 2013, TOMORROW FOCUS AG The core business of BurdaDirect is supplemented by other 7.0 million members in Germany, Austria and Switzerland (2012: margins of existing shareholdings and companies. The goal was increased its shareholdings in HolidayCheck AG, an operator business activities in six separate legal entities. These are the 6.1 million members), and by 14.1 million members worldwide to organize the corporate group for sustainably profitable of hotel evaluation and travel booking portals, by acquiring 100 online florist business Valentins, the tour operator daydreams, (2012: 12.9 million members). More than 800,000 of these peo- growth in the coming years. In addition, for the first time, mem- percent of the shares. The startup date was 10 October 2013 for the B2B incentive service provider BONAGO, the insurance ple are paying users of the premium product. With kununu, an bers of the group took advantage of synergies resulting from www.huffingtonpost.de, the German-language edition of the comparison portal INO24, and provider of advertising inserts employer rating platform that has belonged to the corporate increased collaboration among the companies and common Huffington Post, which was founded in the US in 2005. This por- PaketPLUS. The portfolio is completed by online retailer Silkes group since January 2013, XING is strengthening its position in market opportunities. Smaller-scale acquisitions were also tal for news and debates is produced under a license from Weinkeller GmbH, in which Burda Direct has been an investor since the “social recruiting” area even further. kununu is the largest undertaken, such as that of Silkes Weinkeller, an e-commerce TOMORROW FOCUS Content & Services GmbH, a 100 percent October 2013. European job rating portal, with over 500,000 ratings and company for wine sales. subsidiary of TOMORROW FOCUS AG. The goal is to reach the 140,000 rated companies. The 100 percent subsidiary XING break-even point in the third year of operation and to become Events GmbH (previously Amiando) offers conference and one of the five largest providers of news in Germany within five

104 BURDA Annual Report BURDA Annual Report 105 Domestic Publishing

Forecast Risks for this division In the Domestic Publishing Division of Hubert Burda Media, pub- BurdaLife lishing activities are determined by three publishing groups with For 2014, it is expected that there will be notable market growth The dominant position of large US digital companies is very likely a clear focus on target groups. A total of 91 magazines are BurdaLife has the largest circulation of the three media groups and significant growth in the sales and earnings of companies to pose a risk for the digital business activities. Hubert Burda periodically published in the three units, BurdaLife, Burda Style that operate on a national level. Since January 2014, it has and investments in all digital areas. The consumer Internet, and Media will counteract these tendencies by carefully selecting and Burda News (2012: 83). Additional companies active in this included Medien Park Verlage and Verlagsgruppe Berlin. The therefore also the companies in this corporate group, will grow new digital business models and by integrating them into our business division are the central marketer BCN, the content brands of Burda Life focus on the everyday needs of consumers more significant as a channel for advertising and transactions. existing digital business. For the digital business, the fast pace marketing provider BurdaCreative, BurdaIntermedia, and the and, in terms of circulation, have market-leading positions in the There will also be great opportunities in the linkage of content of change in these business models poses an inherently high central research unit, Media Market Insights. Burda manages areas of food and living (source: MA 2013 II). BurdaLife publish- and commerce. This applies, in particular, to the BurdaTech risk. Under some circumstances a business model existing today magazine sales in Germany through an existing joint venture with es around 50 periodicals in Germany with a circulation exceed- Group and XING. might not be able to permanently hold its ground in the market FUNKE MEDIENGRUPPE, called the Moderner Zeitschriften ing 15.51 million customers (source: MA 2014 I; 2012 figures: The focus is on organic growth of existing shareholdings. In tomorrow. Companies that conduct business over the Internet Vertrieb (MZV). 16.18 million, source: MA 2013 I). In 2013, the individual divisions

addition, the Digital Division will look more intensively for are subject to a high risk that prices could drop as the result of of the publishing unit sold a total of 198 million copies of their 2013 Statements Financial attractive later-stage digital companies. The intention is to global price transparency. For that reason, sales markets will be magazines (2012: 207 million; source: MZV). The portfolio further increase the profitability of the Digital Division by taking continually monitored and short-term responses will be initiated. The trend in traditional sources of revenue includes weekly entertainment and women’s magazines such as over digital companies with a great potential for growth. Freizeit Revue, Super Illu and Lisa, as well as special-interest Again in 2013, the publishing industry in Germany was character- magazines in the areas of food (Meine Familie & ich, Lust ized by a decline in the two core markets of advertising and auf Genuss, among others), lifestyle (Wohnen & Garten, Lisa sales. Competition in the advertising market has further intensi- Wohnen & Dekorieren, among others), gardening (Mein schöner fied. Gross advertising revenue of all consumer magazines in the Garten, among others), country (Mein schönes Land, among entire advertising market, including media advertising, declined by others), advice (Guter Rat) and puzzles. With the expansion of its 0.9 percent, and the share of the advertising market declined by brand families, cross-media cooperative arrangements and new 0.5 percentage points, to 13.3 percent (source: Nielsen). In 2013, developments, BurdaLife is constantly creating new media prod- the Domestic Publishing Division generated €629.9 million in ucts that are tested in the market and periodically published with revenue, and thus 24.1 percent of total corporate revenue (2012: financial success. €645.5 million or 26.3 percent). The goal of stabilizing revenue in the traditional publishing business was largely achieved. In this regard, the division was able to develop new areas of revenue BurdaStyle that were very successful. This process of change will be continued in 2014. BurdaStyle offers a portfolio of exclusive media brands and is, with its 8.17 million readers (2012: 7.14 million; source: MA 2013 I), the largest media provider in Germany in the areas of fashion and entertainment (compare MA 2014 I). With Bunte, Burda Style, Elle, Instyle, Freundin and Donna, the group has brands that influ- ence consumer behavior of female readers. In August 2013, the group expanded its portfolio with Harper’s Bazaar, in a joint venture with US media company Hearst. On the other hand, Cover, a

106 BURDA Annual Report BURDA Annual Report 107 +0.6 % BCN increased its market share in 2013 from 16.7 to 17.3 percent.

women’s magazine introduced in August 2012, was withdrawn been downloaded more than 13 million times. In regard to visits BurdaIntermedia Sales from the market after its March 2014 issue. Following its motto, to the mobile offerings, there were 147.9 million visits in “One Story, Any Screen,” BurdaStyle also displays journalistic December 2013, compared with 112.3 million in December 2012; BurdaIntermedia is a cross-divisional unit that, since 2012, has With a 22.0 percent share of the market in terms of sales, the content in a platform-neutral manner. The online presence of source: Google Analytics.) brought together essential parts of the cross-media activities company MZV, the joint venture with FUNKE MEDIENGRUPPE, Bunte was further developed for this purpose in December 2013, of the Domestic Publishing Division that are outside of the tradi- remains number one in marketing of German magazines, as for example. Content is also offered in a manner custom-tailored tional magazine business. These include websites such as it has been in previous years, and number two in the German for mobile end devices. Bunte’s brand environment is completed BCN Bunte.de and DasKochrezept.de, which were completely revised press distribution market (source: Presse Fachverlag). Also in by live events such as the New Faces Award and the Festival in 2013; mobile offerings; TV formats; production and marketing Sales, Burda is looking for new ways to reach the consumer. In Night during the Berlinale (Berlin International Film Festival). BCN is the central marketer of Hubert Burda Media. In 2013, of events such as Bambi and New Faces Award; merchandising this connection, the retail food business (supermarkets, large BCN increased its market share from 16.7 to 17.3 percent products of the publishing brands; and ticketing for live events. forms of retail trade, and discounters) is becoming more impor- (source: Nielsen Media Research). BCN also expanded its sales tant; according to the 2013 structural analysis of the retail indus-

BurdaNews network internationally (to the US, Great Britain, France, Austria/ try, its share of gross press revenue was about 48 percent. 2013 Statements Financial Switzerland, with representatives in a total of 17 countries). The Media research BurdaNews is a leading provider of printed and digital media BCN portfolio includes magazines of FUNKE MEDIENGRUPPE, offerings that are primarily oriented to male target groups. It SKY Germany, the Indian Hindustan Times, the Epoch Times, the In 2013, Media Market Insights (MMI), the central market research Strategy considers itself an integrated media company because of its Chinese lifestyle magazine Shang, titles of the Danish publisher unit of Hubert Burda Media, pressed ahead with basic coopera- multimedia preparation of journalistic content. The magazines Malling Publications, and the French corporate group Lagardère. tion projects for the German publishing environment. Under the Domestic Publishing launched the growth program GROW! for regularly reach 13.5 million readers (MA 2014 I; figures for 2012: An important factor in BCN’s growth strategy is its media- and motto “Know how Germany lives,” the four media companies the period 2013 to 2015. This program builds on two programs 14.35 million, MA 2013 I). In 2013, mobile and digital offerings client-neutral structure, which is oriented to the requirements of Hubert Burda Media, Axel Springer, Bauer Media Group and of prior years, which had the purpose of changing structures were enhanced, in particular, and new income streams were the market. Gruner + Jahr presented their first-ever joint market media study, and processes in a sustainable manner and which resulted in opened up. The most recent extensions of lines were success- “best for planning” in September 2013. The study supersedes concentration on profitable products, expansion of cooperative fully established: Focus-Gesundheit, with up to 70,000 copies the previous German market media studies, Burda’s “Typology arrangements at the industry level and expansion of the range of sold per issue, and Focus-Diabetes, with about 50,000 copies BurdaCreative of Wishes” and Axel Springer’s and Bauer Media Group’s products. In GROW! every producing profit center must sold. Under new editorship since the end of 2012, the news “Consumer Analysis.” In addition, MMI had an essential share of develop growth strategies based on its core competencies in magazine Focus has been given a more modern look and has After the realignment in 2012, 2013 was a year of growth for the further development of AIM and its shift model, which shows order to broaden its portfolio and sources of revenue. made a name for itself with journalistic revelations that have content marketing provider BurdaCreative. In February 2014, the correlation between advertising investments and advertising brought international attention. The number of copies sold was BurdaCreative acquired the digital content agency wunder success for individual media types and impact indicators, there- 510,000, and circulation was increased by 2 percent, to 4.38 mil- media production GmbH, and will operate and expand it in a by ensuring transparency in strategic media planning. Eleven Forecast lion readers (see MA 2014 I). The digital version of Focus is manner that complements BurdaCreative. Operating in the publishers, 23 media agencies, and 21 companies that adver- established on all common mobile platforms and is being contin- central business field of content marketing, BurdaCreative tise are participating in AIM. Despite the structural and economic challenges, the Domestic ually refined, like the app for TV Spielfilm, which has been sup- designs and operates customers’ own media channels and devel- Publishing Division is optimistic about the future and is pursuing plemented with social media elements, a link to multi-media librar- ops them further on all media platforms that are relevant for the its growth ambitions. Because of the high quality of its journa- ies, and a paid-content offering. (By the end of 2013, the app had interaction between brands and consumers. lism and the strength and credibility of its brands, Domestic Publishing is firmly anchored in the environment of 54 million

108 BURDA Annual Report BURDA Annual Report 109 Burda and its partners published a total of 293 titles outside of Germany (2012: 240). Central and Eastern Europe remains the most important region with 228 titles (2012: 196).

Foreign Publishing

readers throughout Germany (source: MA 2013 II). The goal is Hubert Burda Media concentrates its foreign publishing activi- In Turkey, Hubert Burda Media and the Dogan Media Group joint- being addressed with high-quality products. One example of this to build on this proximity to people over all platforms and to ties in the Foreign Publishing Division, under the operational ly manage the largest Turkish magazine group Dogan-Burda, is the expansion of the segment of high-quality interior decora- develop new sources of revenue in direct interaction with con- leadership of BurdaInternational. Important markets are Central which is distinguished by a broadly diversified portfolio of titles. tion titles through the purchase of the business operations of sumers, through innovation, as well as organic and external and Eastern Europe, Turkey, Asia and Western Europe. In the Asian markets (Thailand, Singapore, Hong Kong, Malaysia, the specialty publishing company Salon-Press and the integra- growth. For 2014, it is assumed that sales revenues will move to BurdaInternational operates in a total of 17 countries. In 2013, Taiwan and India), the focus is on the luxury segment, with brands tion of the home furnishing magazine H.O.M.E. the level of the prior year. The number of titles and digital prod- Burda and its partner publishers published a total of 293 titles such as Prestige. The advertising business in this area is being Particularly in Poland, the now-completed process of consolidat- ucts offered by the division will be expanded in 2014 and should outside of Germany (2012: 240). Central and Eastern Europe expanded by carefully targeted brand events. The luxury segment ing the newly acquired entities offers potential for additional moderately increase. Acquistions initiated in the first quarter of has remained the most important region, as in the prior year, has also played an important role in India since the acquisition increases in efficiency. The collaboration among the individual 2014 (wunder media production GmbH and a majority holding in with 228 titles (2012: 196). of the publishing company Exposure Media Marketing Private national issues of cross-border brands, in respect to editorial Blue Ocean Entertainment AG) will sustainably support this trend. In 2013, external sales of the Foreign Publishing Division totaled Ltd. in June 2013. Since then, Burda has been publishing five content, design, and marketing measures, is also being intensi- €377.9 million (2012: €419.3 million), and thus were below expec- regularly appearing advertising titles there. fied. For individual digital brands from the German Burda port

tations. The decline was primarily the result of the weaker whole- In addition, BurdaInternational is further expanding digital activi- folio, there are opportunities for internationalization, which can 2013 Statements Financial Risks for this division sale and partwork business in Russia and negative currency- ties in all markets. For example, since 2013 it has had a minority be based on existing structures at BurdaInternational. exchange-rate trends. shareholding in a Turkish company that operates the e-com- The ever growing use of journalistic offerings on the Internet and merce portal Lidyana in Turkey. Lidyana.com went online in the oversupply of advertising space will very likely result in lower February 2012 and has developed into one of the largest shop- Forecast revenue in traditional print media. This risk is countered by the Trend ping portals in Turkey, with a focus on fashion accessories and development of new revenue streams that are outside of the tra- jewelry. In addition, since 2012, BurdaInternational has been For 2014, BurdaInternational expects stable sales returns in the ditional advertising and marketing business and that are orient- In Eastern Europe (Russia, Ukraine, Kazakhstan), the primary invested in the Polish company Showroom Sp. z o.o., which great majority of cases, when calculated in the respective coun- ed to the needs of consumers. The activities of the Domestic focus is on the retail market, with a large portfolio of magazines operates an e-commerce portal under the same name, for try’s currency. However, because of the continuing weakness Publishing Division are brought together in the centrally man- in these segments: women (fashion, youth, fashion & style, par- designer brands for the youth market. of important currencies (particularly the ruble and the hryvnia), aged GROW! project. ents), people, food, living, family advice, gardening, men (lifestyle, there will be declining sales revenues when calculated in euro. cars, computers), interactive magazines (readers write for read- Although most of the markets throughout Europe are mature, ers), and crossword puzzles. Strategy and the wholesale and partwork business is stagnating in Russia, In Central and Western Europe (Czech Republic, Romania, Poland, BurdaInternational expects that there will be continued organic France, Great Britain), in addition to a similarly very strong port- At BurdaInternational, the signs continue to point toward growth growth in the existing and recently acquired media brands. folio of our own brands, numerous international titles such as Elle, and transformation. In addition to organic growth in the existing In Romania, following the purchase of the Sanoma-Hearst com- Glamour, Instyle, Marie Claire and Harper’s Bazaar are published markets, the expansion of magazine brands into multi-platform panies, Burda International aims to achieve market leadership in under licensing agreements. In 2013, our market position in products (online, mobile, print) is continuing, along with develop- the advertising and marketing business. The emerging markets Poland was further strengthened by acquisitions. With the acqui- ment of additional revenue sources such as events, tours and in South America and East Asia also offer opportunities for sition of the Polish companies of the Gruner + Jahr Group, Burda book publications. We are also continuing to expand e-com- growth in the area of magazines and digital media products. The further expanded its leading position in the magazine market merce products that are closely linked with our brands, such as company will continue to invest in the luxury segment and in digi- there, not only in regard to readership, but also in regard to the online shops under our own brand names. tal activities, so a slight increase in the number of titles or invest- advertising market. Diversification of our offerings is also progressing. In markets ments can be expected in these areas. with a portfolio that is primarily oriented toward the mainstream audience, sophisticated customer segments are increasingly

110 BURDA Annual Report BURDA Annual Report 111 Vieux-ThannOffenburg NewNuremberg Delhi BurdaDruck main sites

Printing

Risks for this division BurdaDruck specializes in the production of high-quality maga- Details quickly to customer requirements, which are changing with ever zines, catalogs and advertising material in high-volume gravure shorter notices. In 2014, B+B Media Services GmbH will become Continuing political instability (currently in Ukraine, Thailand and printing, and in all services necessary for this. In addition to the Corresponding to the trend throughout Europe, printed tonnage a broker for Printing Division services, in order to allow quicker Turkey) and volatile economic and financial markets (especially Hubert Burda Media publishing houses, customers include is declining at BurdaDruck as well. It declined from 387,000 tons and more efficient accommodation of customer wishes. in Russia) could have noticeable impacts on the sales and earn- independent publishers and customers from a variety of in 2012 to 361,000 tons in 2013. Utilization declined by 6.7 per- The trend in the emerging markets will have a positive impact on ings trend in the international publishing business. In addition, an sectors. Since 2012, marketing, production planning and order cent and was consequently worse than assumed even in 2012. the Printing Division. One result of the continually increasing rate intensifying debt crisis in individual European countries or a col- processing have been pooled in B+B Media Services GmbH, This was attributable to the decline in circulation and volume, of literacy is expected to be a continually growing demand for lapse of the financial markets could endanger the positive trend Offenburg, a joint venture ofBurda Druck and Karl Rauch Verlag not only in the magazine segment, but also in the catalog busi- educational material and for media overall. Burda is accommo- in the economy. The result could be declining revenues for GmbH & Co. KG. Outside of Europe, BurdaDruck is present in ness for traditional mail-order businesses. The bankruptcy of dating this development. For example, in 2013, BurdaDruck advertising customers and therefore lower advertising income New Delhi, India. In 2013, BurdaDruck acquired the shares of the important customers from a variety of sectors and the resulting printed its 50 millionth textbook for countries in developing for the publishing companies. Local legislative initiatives, such as former joint venture partner, the Hindustan Times. The Indian discontinuation of print products contributed to a decline regions. It can be expected that the business field “Education

a prohibition of advertising for certain consumer items, could printing company is consequently a 100 percent subsidiary of in utilization. Market International” will continue to expand. 2013 Statements Financial have significant impacts on the advertising market. The dispos- Burda Druck GmbH, Offenburg. Since then, it has operated Although overall costs were reduced again in 2013, the corre- able income of readers and customers could also be affected under the name BurdaDruck India. sponding savings were far from sufficient to compensate for by such developments, which in turn could result in declining The Burda Druck Group is one of the largest printing companies the decline on the revenue side. The trend in energy costs Forecast external sales in the print and digital businesses. in Europe, with a company site and two plants in Offenburg, a also negatively impacted the overall result. Since the compa- company site in Nuremberg, and a company site in Vieux-Thann, ny’s German operations are encumbered by the EEG tax The tough, cutthroat competition over prices in the European France. In 2013, its external sales amounted to €204.1 million amounting to €52.77 per megawatt-hour, they have a competi- printing market will continue. It must be assumed that demand (2012: €223.8 million). The decline was steeper than expected. tive disadvantage in respect to competitors in neighboring in the European printing market will continue to decline on the The company operates in an industry that has been character- European countries. order of 4.0 percent per year. For the corporation’s German ized for years by declines and overcapacity. Although the market In 2013, BurdaDruck India developed in a gratifying manner operations, the EEG tax, which will increase again in 2014, has been regularly losing printing capacity – Burda as well in regard to productivity, sales and financial results. The acquisi- means an additional burden and further exacerbation of the decommissioned a rotary printing press in Nuremberg in 2013 – tion of orders in India is progressively improving. In addition, already huge competitive disadvantage in respect to printing at the same time, the demand has been declining in at least the there were initially successes in the acquisition of orders for companies in neighboring European countries. Price increases same scope. As a result, the intense, cutthroat competition over production of school textbooks for the African continent. are looming for raw materials, too. However, in view of the tough prices has continued unabated. In addition, large, reel-fed offset competition throughout Europe, it will not be possible to pass on printing machines are increasingly penetrating what used to the higher costs through printing prices. For BurdaDruck, this be the domain of gravure. When assessing the European com- Strategy means there will be a further moderate decline in utilization and petition, distinctions should no longer be made between gravure a marked decline in sales revenue – the latter primarily attribut- printing and large reel-fed offset; instead, large reel-fed printing BurdaDruck will continue to manage costs in a consistent man- able to the changed invoicing at B+B Media Services GmbH. should be considered as a whole. ner in all segments that can be influenced, and will take all possible, sensible measures to strengthen its ability to compete. At the end of 2014, at the Nuremberg site, we will begin efforts to improve the vertical range of production by setting up saddle- stitching equipment. In the meantime, all sites now have a flexible working-time model that allows the company to adjust

112 BURDA Annual Report BURDA Annual Report 113 The number of employees has grown in 2013 to 10,017 (2012: 9,241). The two most important sites are Munich with 2,209 employees and Offenburg with 1,769.

Human Resources

Risks for this division With its large number of different companies and business mod- Training Systematic employee development els, Hubert Burda Media is a very attractive employer. Burda It must be assumed, with a high degree of probability, that circu- uses modern human resource management tools in order to get Burda offers many diverse entry opportunities for junior employ- Burda implemented four different professional and management lation and volume will continue to decline in the area of maga- qualified new employees, to train young employees at the begin- ees. In 2013, the trainee programs that had been carried out for programs in 2013 in order to promote junior employees, prepare zines and the traditional catalog business for mail-order busi- ning of their careers, and to continually nurture and further many years were revised and oriented to current requirements. future managers for their new roles, and support experienced nesses. Opportunities could arise in the e-commerce area, develop existing personnel. With these tools, Burda would like to Six “graduate trainees” are going through the 18-month program managers in their jobs. The Basic Development Program is where it can be seen that Internet mail-order businesses are try- attract highly qualified interested parties in all business fields, for junior employees, the “Burda Graduate Program – Master geared toward promoting the social, personal and methodologi- ing to generate further growth by approaching target groups national and international – especially software developers and Trainees for Media Excellence.” This program is intended to pre- cal skills of junior employees (2013: 23 participants). The Basic with printed advertising material. B+B Media Services will step programmers, who are necessary for the expansion of digital pare them for their later duties as managers by deploying them Management Program (BMP) is designed for junior employees, up its activities in this segment. The relevant national and inter activities. In 2013, the Recruiting Center of Human Resources in all four business divisions. Nine trainees participate in the in order to prepare them for later management tasks (2013: national printing markets will therefore be intensively observed therefore reorganized itself with the goal of finding qualified “Burda Advanced Program – Bachelor Trainees for Media 27 participants). The Senior Management Program (SMP) was

and dealt with. future employees even faster and more efficiently. Success”. During this 12-month trainee program for young talent, oriented toward selected management, to boost their individual 2013 Statements Financial There is also a risk in the changing creditworthiness of key cus- participants are trained as specialists in their principal area. The leadership and management skills (2013: 22 employees). In the tomers. We are responding to the related risks of losses on goal this year is to acquire all 15 trainees as full-time employees. Leadership Program for Journalists, management and junior receivables with systematic creditworthiness assessments and Employee structure In the fall of 2013, 23 new journalists began their dual training at employees from editorial staffs learned the basic principles of the use of a policy insuring against bad debts and, as appropri the Burda School of Journalism. Over the course of 24 months, modern leadership skills (2013: 15 employees). ate, also with an agreement on advance payments, as well as In 2013, the number of employees increased to 10,017 (2012: the students will learn, on a theoretical and practical level, how to Continuing-education programs are continually refined and are very close monitoring of unpaid items. 9,241). This impressive growth is primarily attributable to the develop cross-technology content for different brands and tar- custom-tailored to meet the needs of the companies and Rising costs, especially for raw materials and energy, will most inclusion of the new Polish companies (+224 employees) and the get groups on their own, and also how to implement the content employees even better. For example, technical skills and man- likely have a negative impact on Printing Division results because change in the consolidation method of BurdaDruck India both textually and visually. From the group that finished in 2013, agement training programs were revised and restructured at these costs can only be passed on to customers to a limited (+133 employees). The Group’s companies are represented at 18 trainees (86 percent) were hired. the beginning of 2014. They are going to be set up under the extent. The Printing Division is responding to these risks with con- more than 20 sites in Germany, the most important of which are Above and beyond that, Burda at this time offers a wide variety titles, “GO! – Start up yourself,” “LEAD! – Leading teams” and sistent cost management and continual process optimization. Munich with 2,209 employees, Offenburg with 1,769 employees of training programs throughout Germany for 49 apprentices in “EMPOWER! – Leading leaders.” and Hamburg with 948 employees. 13 occupational categories. In the past year, Burda’s continuing-education offerings for inter- Outside of Germany, the largest country sites are in Russia, In addition, Burda links scientific and practical occupational nal use included 260 different seminars, presentations, and Poland, the Czech Republic and Ukraine. training through dual-study programs in Ravensburg and training programs. A total of 2,869 participants took advantage The average age of employees in the Group is 39. Women consti- Mannheim. In 2013, five junior employees began a dual-study of the offerings. In addition, there were 96 external continuing- tute 52.3 percent of employees and 41.3 percent of all managers. program at Burda in the majors econonics, media design, and education activities with a total of 116 participants from Burda. information technology. From the class of 2013, two dual- studies graduates were hired. In 2013, Burda made it possible for about 600 interns to get practical experience in an international media company.

114 BURDA Annual Report BURDA Annual Report 115 -1,307 tons: the annual CO2 emissions decreased by 1,307 tons (19,721 tons to 18,414 tons) at the Offenburg headquarters.

Environment and sustainability

Leadership tools Health and occupational safety management Outlook Acting in an entrepreneurial manner requires a sense of social responsibility. Especially in the producing units, Burda therefore In 2013, performance reviews were introduced through- “Live healthily, work more easily” – this motto summarizes The above-mentioned tools of modern human resources man- strives for sustainable development that meets the needs of the out Germany. Burda’s health measures. The topics addressed in events and agement will be refined and expanded in the future. In 2014, the current generation without endangering the opportunities of The Burda Competence Model was developed and drafted in campaigns of 2013 ranged from colon cancer prevention, to focus is on carrying out the recruiting process in a professional future generations. In production, the latest technology is there- 2013. This orientation framework describes interpersonal skills ergonomics at the workplace, to individual measures on the sub- manner and raising the quality of the pool of job applicants. The fore used to make economic growth consistent with preserva- that are crucial for the success of an organization. The goal is ject of health and stress. In addition, in cooperation with insur- plan is to reach highly qualified employees, who are needed for tion of a healthy environment. to identify, develop and create a permanent bond with talented ance companies, Burda organized educational events on topics the development of the company, faster and more efficiently. individuals, based on these skills. In 2014, this model, together such as “Healthy Snacking” and “Hydrate to Get Fit” at various Another area of focus is the development and qualification with the performance reviews, will first be implemented in all Burda sites. At Burda, the subject of occupational safety is a of managers, so that they will be able to function even more Energy management and climate protection units of the Digital Division. The plan is to extend the use to other component of the environmental protection and safety manage- successfully as “entrepreneurs in the enterprise.”

divisions over the course of the year. ment system. Occupational safety measures range from desig- At the Offenburg site, BurdaDruck voluntarily participates in the 2013 Statements Financial nation of safety officers and first responders in the various units, Community Eco-Management and Audit Scheme, also known as to regular inspection rounds with the company physician. In the “eco-audit.” This is a community system for environmental Compatibility of career and family addition, there are plans to establish Group-wide health man- management and environmental audits of business enterprises. agement, which will include not only currently existing activities, As a central element of this involvement, Burda publishes an Burda aims to integrate parents back into work life quickly and but also further necessary measures. environmental declaration every three years and a brief updated smoothly following the individually arranged parental leave, and version every year. This provides all interested parties with infor- offers individual, flexible solutions to achieve this. The nonprofit mation about production activities, related environmentally rele- Hertie Foundation has already awarded Burda the “Family and Work and life in balance vant topics, and action that has been taken to protect the envi- Career” Certificate a number of times for its Munich and ronment efficiently and sustainably. Offenburg sites. The recertification process has already been Burda also offers various types of sports and activities that bring Because of its participation in the climate initiative of the German successfully concluded for 2014. together employees with common interests in their free time. Printing and Media Industries Federation, BurdaDruck can use

The day care facility Burda Bande was established in Munich Yoga during the noon lunch break, karate in the video studio, the professionally respected, Federation-developed CO2 cal- back in 1997; at the end of 2013, 56 children were receiving day Pilates and Zumba are just a few of the many types of sports culator to calculate the carbon footprint of printing orders for its care there. The day care center Burda Bambini opened in that are offered at the various sites. In 2013, employees and their customers. This determination is based on the amount of paper Offenburg in November 2011. At the end of 2013, 11 small families ran together on the track at the large sports festival used and on site-specific emissions. BurdaDruck succeeded in children and seven kindergarteners received care there. For “Burda runs!” In addition, there were activities such as “Burda significantly reducing total CO2 emissions at these printing sites: employees who personally tend to family members who require kicks!” and the “Burda Ski Cup.” At the Hauptstraße site in Offenburg, CO2 emissions were reduced care, Burda offers individual, flexible working-time solutions, by 1,307 tons, from 19,721 to 18,414 tons. In the Gutenbergstraße beyond what is required under the law. site, also in Offenburg, CO2 emissions increased slightly, from 3,495 tons to 3,667 tons (+172 tons). At the Nuremberg site, emissions declined by 1,605 tons, from 17,614 to 16,009 tons.

116 BURDA Annual Report BURDA Annual Report 117 Corporate social responsibility Report on opportunities

Sustainable paper production Burda is particularly involved in areas ranging from art, literature mandated health insurance benefit in 2002, the Felix Burda Hubert Burda Media has many different opportunities; the most and education to research, science and health. Burda also uses Foundation accomplished another goal in 2013, as the Law on significant are described below. Along with price, quality and availability, the environmental quali- its media expertise for good causes. For example, in major the Further Development of the Early Detection of Cancer and For Burda, opportunities for growth primarily come from the rap- ty of the raw materials is important for the acceptance of print events such as the awarding of the Bambi prize, aid organiza- Quality Assurance through Clinical Cancer Registries went into idly growing importance of the consumer Internet as a channel products. BurdaDruck strives for complete transparency of the tions and particular individuals receive attention for their effect in April 2013. This creates the legal basis for introducing a for advertising and transactions. paper production process, starting with the extraction of raw social involvement. nationwide invitation procedure in which all insured persons of In the case of magazines in the Domestic Publishing Division, the materials for paper in the forest. 50 years old and above receive a personal letter inviting them expansion of magazine brands to other product areas – such as Production chain certificates are intended to inform the custom- to participate in a colon cancer screening. commerce, events and merchandising – is opening up addition- er of the fact that the raw materials used come from forests that Hubert Burda Foundation al opportunities for revenue. Although the traditional markets for are managed in an exemplary manner. The certification systems magazine sales and advertising show few opportunities for relevant to the printing industry at present are those of the FSC The Hubert Burda Foundation, which was founded in 1999, re- Tribute to Bambi Foundation growth in Germany, Burda might be able to profit from an

(Forest Stewardship Council) and the PEFC (Programme for the ceives significant support from the Group corporations. Promo- expected consolidation of the magazine market, which tends to 2013 Statements Financial Endorsement of Forest Certification). BurdaDruck’s gravure tional activities in the areas of science, education, art and the The Tribute to Bambi Foundation supports organizations that be crowded. In the marketing of magazines, the company can printing operations in Offenburg, Vieux-Thann and Nuremberg humanities include, among others, the Felix Burda Foundation, help impoverished children in Germany. About 70 organizations profit from the positive evidence of the effectiveness of the AIM have both certificates, allowing them to confirm to customers the European Translator Prize and the Petrarca Prize. have been assisted since the campaign was initiated by the data tool. There are additional opportunities in the growth mar- that only certified raw materials have been used, and to add magazine Bunte in 2001. For example, in 2013, organizations ket of “content marketing,” in which the Group is already well the respective logos to products made from certified paper. that received assistance included Verein Kids Hamburg e.V., positioned through BurdaCreative. Felix Burda Foundation which makes mentally handicapped girls strong so that they can Outside of Germany, Burda can develop good opportunities for protect themselves from sexual assaults, and Kinder-Augen- growth that have resulted from the increasing prosperity in for- The Felix Burda Foundation, an institution also primarily support- Krebs-Stiftung, which campaigns for early detection of eye mer third-world and in emerging countries, as the need for printed by Group affiliates, has been involved in prevention of colon cancer in children. ed and digital media products, and also the need for printed cancer since 2001. To reach its goal of “No Colon Cancer in products in general, will rise. Germany,” the foundation relies on broadly based communica- The continuing digitalization throughout the world, along with the tion – from advertising in social media to political lobbying. By Christian Liebig Foundation increasing level of prosperity and education, creates opportuni- the end of 2012, about five million people in Germany had taken ties for digital business models and for opening new markets advantage of the legally required screening colonoscopy, there- Focus Magazin Verlag GmbH has been involved with Christian- with media products. Last but not least, it can be expected that by improving their chances against colon cancer. In about Liebig-Stiftung e.V. since 2003. In the past 10 years, thousands quite a few large companies will enter the market of “emerging 291,000 of these procedures, advanced adenomas, which would of children in Malawi and Mozambique have been given the markets,” or expand their involvement there, which will result in have become cancerous in a few years, were detected and opportunity for a better future through the construction of new opportunities in the media business and also in the printing removed (Source: Lutz Altenhofen, Chafik El Mahi, Arne Weber, schools and orphanages and the awarding of dozens of scholar- of advertising materials, for example. Jens Kretschmann, Maik Heringer, Fritz Lichtner, Abschluss ships. In all projects, the foundation worked independently as As it already has up until now, Burda will take sensible advantage bericht 2012 und Rückblick auf 10 Jahre Früherkennungs-Kolo well as in cooperation with large charitable organizations. of the opportunities that arise, in order to continue the financial skopie in Deutschland [2012 Final Report and Review of 10 development of the Group. Years of Screening Colonoscopies in Germany] presented at the 30 Oct. 2013 meeting of the Screening Colonoscopy Advisory Board, Berlin). After colonoscopy screening became a legally

118 BURDA Annual Report BURDA Annual Report 119 Risk report

As previously noted above in part, Hubert Burda Media’s busi- investments could lead to lower valuations, which would nega- are currently seen in the case of the ruble. At present time, we the introduction of risk-oriented information security manage- ness divisions are subject to risks that are inseparable from tively impact earnings in accordance with the size of the invest- assess as rather low the risk of potential devaluations of the net ment. The protection of information and IT systems is continu- entrepreneurial activities. However, even though the risk situa- ment. Risks related to shareholdings mainly come from risks working capital denominated in foreign currency because of ously monitored and improved, based on recognized standards. tion is basically unchanged, risks will not have any significant ranging from a significantly worsened situation of the relevant exchange rate changes. If it is financially sensible, bank loans Compliance with data protection laws is extremely important for impact on the development of the Group. company to bankruptcy. These are monitored by appropriate will also be taken out in foreign currency for the purpose of the business activities of Hubert Burda Media. Protection of data investment monitoring. We assess the significance of these establishing natural hedging relationships. is therefore intensively monitored by independent, highly skilled risks for the Group as minor when considered individually Interest rate risks are also centrally monitored on a continuous data security specialists. Risk management and altogether. basis and, where it makes sense, are protected by micro-hedges. The goal of this kind of hedging is to avoid potential negative Hubert Burda Media responds to the various business risks with cash flow fluctuations due to variable-interest bank loans. Since Risks arising from legal procedures an efficient and effective risk management system, which follows Financial and liquidity risks the arranged interest rate swaps reflect the underlying transac-

the principles and the framework of the internationally recog- tions in all parameters relevant to the valuation, hedging units Legal risks arising from existing contracts or current proceed- 2013 Statements Financial nized risk management standard ISO 31000. The procedure for Exchange rate and interest rate risks as well as other financial were formed that are 100 percent effective. The effectiveness is ings are covered, as needed, by the establishment of provisions assessing and evaluating risks, which has been in existence for risks are closely monitored, effectively managed and partially reviewed using the critical term-match method, taking into (loss reserves). Court decisions in the area of press law as well many years, was further refined in the past fiscal year as well. As reduced through hedging transactions. A treasury guideline account the creditworthiness of the hedge partner. In the case as amendments of the law initiated on the European level are part of a risk workshop with the company management, poten- defines the scope of options for taking on exchange rate and of variable-interest bank loans that are not covered by any hedg- analyzed for the purpose of identifying the resulting risks and tial risks are systematically identified and evaluated, following a interest rate risks, and centralizes the necessary hedging ing transactions, we are currently assuming that there is no limitations to business activities in time, and reacting accordingly. uniform risk catalog. The risk catalog includes compliance risk activities. significant interest rate risk. Supplementing the Press Cothousandde, the main compliance categories along with strategic, operational and financial risks. Interest and currency hedging transactions are only entered With the aid of adequately high credit lines and a consistently requirements under press law are stated in the Guidelines for The respective responsible individuals take appropriate action if they can minimize risks related to changes in corresponding positive cash flow, Hubert Burda Media is always provided with the Editorial Work of Hubert Burda Media in Germany. based on this information. The risk management process is effi- underlying transactions. sufficient liquidity. As the protection of brands and the protection of intellectual ciently supported by standard software. Centralized and local Currency exchange risks are regularly analyzed on the basis of property rights are very important to Hubert Burda Media, all monitoring functions, as well as an independent internal audit, Group-wide reports on currencies that are significant for Burda. relevant developments in this field are closely monitored monitor the effectiveness of risk management in order to ensure Basically, hedging units – including ones that are relevant for IT and data protection risks and analyzed. that risks are detected early on, correctly assessed and continu- balancing of accounts – are formed between underlying trans ally monitored. actions (purchase and sales transactions, which are very likely In order to avoid or reduce IT risks, Hurbert Burda Media makes to be in foreign currency) and hedging transactions in the form use of backup computers, data backup systems, and virus and Risk management in respect to financial reporting of forward currency contracts. Hedging based on micro and access protection, among other things. Specific emergency Investment risks portfolio hedges is undertaken in order to offset future cash flow tests additionally reduce potential risks. The Internet presence The requirements for monitoring the accounting and financial fluctuations that are caused by changes in currency exchange of companies needs to be constantly available; in this area, data reporting in an appropriate and reliable manner remain strict. Risks arising from significant investments, projects and acquisi- rates. In the case of hedging, at the current time only forward losses or attacks by hackers pose high risks to revenue and rep- The internal monitoring and risk management system ensures tions are identified through reviews of investments and are exchange transactions or foreign currency option transactions utation in some cases, depending on the business model and that all requirements are met. It is designed to ensure, with a authorized by in-house monitoring of approvals. Large-scale are undertaken. If hedging transactions are still open on the bal- degree of dependency on IT systems. In this regard, the trend to satisfactory degree of certainty, that financial reporting is reli- one-time investments are applied for and approved within the ance sheet date, the effectiveness of the hedging units is investi- be noted is that these attacks are being carried out in a substan- able and that the preparation of the consolidated financial state- framework of an expenditure approval guideline. Risks that arise gated by means of the cumulative dollar offset method. Outside tially more targeted way. In the past fiscal year, Hubert Burda ments are in conformance with relevant laws and standards. in connection with tangible, productive assets or financial of existing hedging relationships, significant exchange rate risks Media has taken this issue even more strongly into account with During preparation of the consolidated financial statements, the

120 BURDA Annual Report BURDA Annual Report 121 Events after the balance sheet date Outlook

completeness of the financial reporting, the principle of func- After the balance sheet date, no events have occurred that sub- The rising gross domestic product (forecast for 2014: + 1.6 per- providers in marketing and in magazine sales. The increasing tional division, and adherence to the four-eyes principle ensure stantially impact the assets, financial position or profit situation. cent; German Council of Economic Experts, Annual Assessment prosperity and increasing literacy, particularly in Asia, basically that all transactions are recorded promptly and in due time in for 2013/14), the continued willingness of Germans to spend suggest a growing need for media. All in all, this creates good order to ensure on-schedule completion of the accounts. and the high rate of employment create good conditions for preconditions for Burda to get a foothold in the Asian markets Intragroup transactions are fully recognized, balanced and elimi- Burda’s business within Germany. Although the euro crisis has with additional media products. nated. Issues related to agreements that have been reached, faded in the public perception, allowing the Germans’ trust in the In the area of gravure, growth is possible only in foreign markets, that have effects on accounting and that are subject to disclo- currency to be strengthened, it has not been eliminated by any where the need for educational media is strongly increasing due sure are identified and correctly represented in the statements. means. Nevertheless, general consumer confidence in Germany to a rising level of education, among other things. In Europe, the The use of an intragroup Shared Service Center is essential in is likely to be fundamentally positive for Burda’s sales markets – need for high-volume print products will continue to decline. this process. The Shared Service Center prepares the statutory both in the printing and digital areas. The competition for advertising money among the national media statements of most of the consolidated German affiliates and is The consumer Internet will become more important as a channel providers markedly intensified in 2013 and, at the same time, the

responsible for the central implementation of the consolidation for transactions and advertising in 2014 and beyond and, based supply of advertising space continued to rise. The competition 2013 Statements Financial work and the preparation of the consolidated statements. on the sales transacted through the Internet, will grow by an set off by globally operating technology and e-commerce com- Consistent accounting is assured through Group-wide regula- estimated 15.0 percent per year. The Digital Division will make panies has also noticeably increased. The efficient structures of tions and processes, suitable analysis of the incoming data, and use of this growth and will thus achieve the greatest growth Hubert Burda Media, the consistently encouraged diversification the use of SAP software applications. among the business divisions of the Group again in 2014. In and related balancing of risks are creating the prerequisites for some business fields, however, the company is in direct compe- Burda to continue asserting itself, even under intensified condi- tition with the dominant American technology and e-commerce tions – provided that economic growth in Germany and in a few companies, which can operate in Europe under better competi- foreign markets moves within the expected framework. For 2014, tive conditions than European companies themselves. moderately increasing Group revenue is therefore expected. In Germany, sales revenue from popular magazines is expected Over the medium and long terms, after a successfully concluded to decline slightly in 2014. The advertising market of popular transformation phase, Burda has good chances for stable magazines will likely also decline to a moderate extent. It is growth and a long-term positive trend in its media business. expected, however, that the Domestic Publishing Division will be able to maintain its market position this year as well. The Domestic Publishing Division has strong brands that are relevant for consumers and has good possibilities for developing additional sources of revenue. In relevant foreign markets where Burda operates (especially Russia, Turkey, Ukraine and Romania), the local currencies and therefore the exchange rates in respect to the euro have increasingly come under pressure. This will have negative impacts on the sales trend, even though our market position can be strengthened overall. In addition, there could be further political instability and unforeseeable restrictions imposed by political decision-makers. Such restrictions could also apply to media

122 BURDA Annual Report BURDA Annual Report 123 Consolidated Balance Sheet as of 31 December 2013 Hubert Burda Media Holding Kommanditgesellschaft

2012 2013 2012 2013 Assets k € € Equity and liabilities k € €

(6) Fixed assets 855,017 846,875,451.47 (9) Equity 397,976 425,865,907.21

Intangible assets 427,637 421,194,813.46 Accruals 360,994 371,339,155.00 Concessions, industrial property rights, and similar rights and assets, Pension accruals 174,583 176,560,436.60 and licenses in such rights and assets 133,830 138,878,401.55 (10) Tax accruals 33,165 36,109,674.10 Goodwill 292,279 281,374,332.86 (11) Other accruals 153,246 158,669,044.30 Prepayments 1,528 942,079.05 (12) Payables 700,851 661,675,125.21 Tangible assets 253,030 235,953,696.28 Bank loans and overdrafts 349,658 306,393,186.32 Land, similar rights and buildings, including buildings on leasehold land 163,083 153,582,403.37 Customer advances 6,486 10,150,603.66 Technical equipment and machinery 43,631 38,754,048.70 Trade payables 252,742 247,233,382.07 Other equipment, factory and office equipment 45,183 42,518,266.52 Payables to companies in which the company has a participating interest 9,234 9,135,183.87 Prepayments and construction in progress 1,133 1,098,977.69 Other liabilities 82,731 88,762,769.29

Financial assets 174,350 189,726,941.73 (8) Deferred income 68,814 75,628,889.44 Participating interests 144,467 161,382,355.34 (13) Deferred tax liabilities 17,654 16,824,754.63 Shares in affiliated companies 25,075 22,740,760.27 Loans to companies in which the company has a participating interest 721 583,899.08 Securities 3,861 3,817,710.47 Financial Statements 2013 Statements Financial Other loans 226 1,202,216.57

Current assets 678,206 692,307,608.58

Inventories 140,751 169,113,697.30 Raw materials and operating supplies 26,897 25,797,798.23 Work in progress 13,319 10,837,071.52 Finished goods and merchandise 99,440 131,436,175.53 Prepayments 1,095 1,042,652.02

(7) Receivables and other assets 340,480 369,995,314.29 Trade receivables 251,639 269,314,664.96 Receivables from companies in which the company has a participating interest 29,855 28,154,579.64 Other assets 58,986 72,526,069.69

Other securities 32,641 7,312,261.39

Cash on hand, German Central Bank balances and other bank balances and checks 164,334 145,886,335.60

(8) Prepaid expenses and deferred charges 13,066 12,150,771.44

Total assets 1,546,289 1,551,333,831.49

The numbers in parentheses refer to information in the notes. Total equity and liabilities 1,546,289 1,551,333,831.49

124 BURDA Annual Report BURDA Annual Report 125 Number of consolidated companies:

31 Dec 2012 31 Dec 2013

Domestic 146 149 Foreign 73 85

Tot al 219 234 thereof fully consolidated 186 205 consolidated pro rata 14 14 affiliated companies 19 15

Notes to the Consolidated Financial Statements for the Fiscal Year 2013

(1) General remarks the pro rata equity subject to consolidation at the date of the forward, written off and dissolved in accordance with Sec. 312 (2) (4) Currency conversion acquisition of shares or initial inclusion in the consolidated HGB, new version. The disclosed goodwill resulting from previ- The consolidated financial statements as of 31 December 2013 statements. ous years and shown under the balance sheet item of the same Accounts receivable and other assets, bank balances, and were prepared in accordance with the regulations of the German The revaluation method in accordance with Sec. 301 (1) HGB, name was previously transferred to the investment book value accounts payable denominated in non-euro foreign currencies Law on Corporate Disclosure (“Publizitätsgesetz”). new version, applies for acquisitions since the beginning of of the corresponding affiliated company in 2010. were converted into euro at the exchange rate applicable at fiscal year 2010. In this method, the stated value of the shares At the reporting date, the difference between the book value and the time of transaction or the higher or lower currency exchange in the relevant subsidiary held by the parent company is offset the share of equity in the affiliated companies amounted to rate as of the balance sheet date. Items with a remaining term (2) Consolidation group against the equity of the subsidiary that is apportionable to €17,479k; the goodwill included therein amounted to €16,686k. of up to one year were generally valued at the exchange rate these shares, and that corresponds to the market value of the The goodwill from the consolidation of investments generally has applicable as of the balance sheet date. Of the fully consolidated companies, 56 reported shares held by assets, liabilities, accruals and special items that must be includ- a useful life of up to 15 years. Periods of useful life over five years Conversion of the equity position of consolidated companies third parties (2012: 50). There were 25 companies with low busi- ed in the consolidated financial statements. Accruals are valued result from the business model of the company concerned. In outside the European Currency Union was carried out using his-

ness volumes and/or no business activities. These were not con- in accordance with Sec. 253 (1) clauses 2 and 3 as well as (2) the case of a business model similar to a subscription business, torical exchange rates; remaining balance sheet items were 2013 Statements Financial solidated as they were of minor importance for conveying a true HGB, and deferred taxes are valued in accordance with Sec. Hubert Burda Media continues to rely on figures that are based converted at the average spot exchange rate on the balance and fair view of the net assets, financial position and results of 274 (2) HGB. Offsetting is carried out on the basis of the value on experience with the development or duration of comparable sheet date, and profit and loss account items at the annual aver- operation (2012: 21). The consolidated companies are listed in stated at the time the company concerned became a subsidiary. customer bases in the publishing business, and that are also age exchange rates. Resulting conversion differences were off- an appendix to the notes in accordance with Sec. 313 (2) HGB Any goodwill arising from the consolidation of investments up expected in the future. The same applies to sales-oriented busi- set against equity, not affecting net income. (German Commercial Code). ROSEA Grundstücks-Vermietungs until the end of fiscal year 2009 was capitalized and offset pro- ness models, because in this case, too, the company has experi- gesellschaft mbH & Co. Objekt BURDA Medien Park KG, Düssel portionately against equity. This treatment of goodwill was ence (for example, with comparable product life cycles) that jus- dorf, as well as ROSEA Grundstücks-Vermietungsgesellschaft retained and also continued to apply in the fiscal years following tifies a correspondingly long period of useful life. The straight-line mbH & Co. Objekt BURDA Offenburg GK , Düsseldorf, were con- 31 December 2009. In fiscal year 2013, €21,664k of this existing method of depreciation is used. solidated in accordance with Sec. 290 (2) no. 4 HGB. goodwill was newly offset (2012: €22,711k). Goodwill from acqui- Any difference arising from the consolidation of investments sitions since 1 January 2010 is depreciated in the income state- on the liabilities side is disclosed as a separate item after equi- ment over the course of the anticipated useful life. ty and is dissolved in accordance with Sec. 309 (2) HGB. As of (3) principles of consolidation For acquisitions up until the end of the fiscal year 2009, inclu- the balance sheet date, there was no difference on the liabili- sion of affiliated companies in the consolidated statements fol- ties side. As a rule, the annual financial statements of the consolidated lowed the capital share method in accordance with Sec. 312 (1) Loans and other receivables, accruals, and liabilities among the companies were prepared as of 31 December 2013. In the case clause 1 no. 2 HGB, old version, whereby consolidation of equity companies included in the consolidated statements have been of four companies, interim statements were prepared as of was carried out as of the date of acquisition. Past goodwill was omitted, along with deferred items. Sales revenues, expenses 31 December 2013, for the purpose of inclusion in the Group carried forward and an amount equal to €1,196k was offset and earnings among companies included in the consolidated consolidated statements. The inclusion of affiliated companies against equity in fiscal year 2013 (2012: €3,902k). statements were offset against each other. was based on their financial statements as of 31 December 2013. Starting in fiscal year 2010, investments in affiliated companies For acquisitions up until the end of fiscal year 2009, consolida- have been disclosed at book value in the consolidated financial tion of investments for the fully and proportionately consolidated statements. The book value and any difference between the subsidiaries was carried out according to the book value meth- book value and the share of equity are calculated as of the date od in accordance with Sec. 301 (1) no. 1 HGB, old version. Under the company became an affiliated company. Any difference aris- this method, the book values of the investments were offset with ing from the consolidation of investments is calculated, carried

126 BURDA Annual Report BURDA Annual Report 127 (5) Accounting and valuation principles Independently usable assets subject to depreciation were fully Other securities were valued at acquisition cost and/or lower The interest rate of 4.9 percent per year applied during the fiscal written off in their year of acquisition and treated as disposals in market prices at balance sheet date. year corresponds to the market interest rate for an assumed The accounting and valuation principles that applied last year the consolidated development of fixed assets insofar as their Liquid assets were recorded at face value. remaining term to maturity of 15 years, averaged over the last remained unchanged. respective acquisition or production costs were not above A revaluation up to the carrying amount of the assets was record- seven fiscal years, as calculated and published by the German Assets and liabilities were valued in compliance with the pru- €410.00 (low-value assets). If the acquisition or production costs ed if an unscheduled depreciation was carried out on assets or Federal Bank. In cases of a remaining term significantly shorter dence principle and in accordance with the methods applied for exceeded €410.00, the respective assets were capitalized and if current assets were recognized at a lower of cost or market or longer than 15 years, the actual remaining terms and the cor the parent company. written off as scheduled over the course of their useful life. value and the reasons for the depreciation have become partially responding interest rates calculated and published by the German Intangible assets acquired were valued at acquisition cost and Financial assets were recognized at original cost or the lower or completely irrelevant in the meantime. This does not apply Federal Bank were applied. were depreciated according to the straight-line method over the fair value in the event of an impairment that was expected to to any unscheduled write-down of goodwill carried out in previ- Because the majority of the pension obligations are based on reg- course of their anticipated useful life. Unscheduled depreciation be permanent. Interest-bearing loans were recognized at face ous years. ulations for new employees entering the group from September was undertaken to the extent necessary. Offsetting or amortiza- value. Low-interest loans and non-interest-bearing loans were Accruals for pensions, part-time employment preceding retire- 1994 on, and because the still-active employees entitled to the

tion of goodwill was based on an anticipated useful life of up to discounted according to their remaining time to maturity. ment, anniversaries or death-related benefits are inventoried as pension fund have been with the company for a long time as of 2013 Statements Financial 15 years, depending upon the business model of the company Raw materials, operating supplies and merchandise were of 31 October of the fiscal year. These accruals were deter- the balance sheet date, fluctuations at individual plants and sites in question. Internally generated intangible assets were recorded at the average acquisition cost. If the replacement cost mined on the basis of actuarial computations using biometric were not considered in this calculation due to their immateriality. not capitalized. and/or market price was lower at the reporting date, that figure probability (2005 G Heubeck mortality tables) in accordance An average annual fluctuation of 3.0 percent per year in the first Tangible assets were recognized at acquisition or production was used in the valuation. Finished goods and services and work with the projected unit credit method, taking into consideration 10 years of employment was assumed with regard to accruals cost, less scheduled depreciation and, if required, unscheduled in process were capitalized at cost or the lower fair value at the the following general assumptions valid as of 31 October 2013: for anniversary bonuses and for death-related benefits. Starting depreciation. In addition to individual costs, production costs reporting date. In addition to individual material and production also include appropriate portions of material and production costs, production costs include appropriate portions of material overhead. As a rule, moveable depreciable assets were written and production overhead, as well as depreciation insofar as it is off over their useful life according to the straight-line method; applicable to production. Increases in alternatively, in the case of fixed assets added prior to 1 January All separately identifiable risks were taken into consideration in remunerations and Assumed remaining pensions term to maturity Interest rate Fluctuation 2010, moveable depreciable assets were written off according the valuation of accounts receivable and other assets. An appro- in % p. a. in years in % p. a. in % p. a. to the declining-balance method for tax reasons. In these old priate general provision was formed to cover general credit risks. cases, the method used is changed to the straight-line method Corporate tax credits pursuant to Sec. 37 (5) KStG (German Pensions 1.8 up to 28 up to 4.97 0 as soon as this results in higher annual depreciation. Corporate Tax law) shown under other assets were valued at Part-time employment preceding retirement 1.8 2 3.50 0 cash value. Anniversaries n/a 15 4.90 up to 3.0 Death-related benefits 1.8 15 4.90 up to 3.0

128 BURDA Annual Report BURDA Annual Report 129 at the 11th year of employment, the fluctuation at an individual a reasonable commercial assessment. The liabilities were (7) Receivables and other assets (9) Equity site was not considered in this calculation due to its immateriality. recorded at their anticipated repayment amount. Future price As part of the German Accounting Law Modernization Act and cost increases were considered insofar as sufficiently €429k (2012: €675k) in trade receivables, €278k (2012: €166k) Equity comprises the capital and reserve accounts of the general (BilMoG), in force since 29 May 2009, the valuation of current objective indications of their occurrence were available. in receivables due from companies in which the company has partner and the limited partners, the exchange rate difference pensions or pension entitlements has changed. The difference Accruals with a remaining term of more than one year are dis- a participating interest and €5,937k (2012: €6,594k) in other resulting from currency conversion, the goodwill offset against resulting from the changed valuation of current pensions or pen- counted by the average market rate prevailing over the past assets have a remaining term of more than one year. All other equity, the reserves of subsidiaries, Group net profit, and third- sion entitlements is allocated over a period of 15 years. The seven fiscal years as calculated and published by the German accounts receivable and other assets are due within a year. party interests in consolidated subsidiaries. amount not yet allocated according to Sec. 67 (2) EGHGB Federal Bank. Subject to separate disclosure, receivables due from companies accounts for €32,515k as of the reporting date. Liabilities were recorded at their repayment amount. in which the company has a participating interest would have to Pension plan reinsurance values which would have otherwise Insofar as hedging is carried out in order to secure currency be disclosed as trade receivables in the amount of €20,717k and (10) tax accruals been disclosed under other assets were offset against the pen- exchange rates, the hedging rates are generally applied to the as other assets in the amount of €7,438k.

sion obligations in the amount of €2,815k, for which the insur- valuation of the respective receivables and payables. An accrual Other assets include corporate tax credits pursuant to Sec. 37 (5) Accruals for taxation primarily include amounts to be paid in 2013 Statements Financial ance policies were taken out. These values correspond to the for contingent losses is created for any potential excess losses KStG amounting to €4,740k. 2014, and also include amounts related to risks identified in market value and the amortized cost of the offset assets as well from currency hedging transactions. Other assets also include input tax-refund claims in the amount tax audits. as the repayment amount of the offset liabilities. The reinsur- Insofar as transactions were valued as units, they were capital- of €3,587k, which legally accrue only after the reporting date. ance values have been confirmed by the respective insurance ized by applying the net hedge presentation method. companies. They have been valued at the amount as derived by (11) other accruals the insurance company from the capital coverage calculated in (8) prepaid expenses and deferred charges accordance with the normal course of business for the end of (6) Fixed assets Other accruals primarily comprise amounts for outstanding sup- the insurance period or, at minimum, as derived from the guaran- The prepaid expenses and deferred charges shown on the con- plier invoices, holiday entitlements, other personnel expenses, teed repurchase value. The development of the individual items of the consolidated solidated balance sheet on the assets side contain a discount as returns, discounts and rebates, litigation risks, and losses from To guarantee the obligations arising from the accruals of part- fixed assets is shown in a separate fixed-asset schedule. defined in Sec. 250 (3) HGB in the amount of €83k (2012: €97k). pending transactions. time employment preceding retirement, the employers have pro- The goodwill reported is primarily the result of the initial con- The balance sheet item on the liabilities side primarily comprises vided bank guarantees on behalf of the beneficiaries. solidation of investments. Unscheduled depreciation on tangible deferred income from subscriptions and online memberships. The tax accruals and other accruals considered include all iden- and intangible assets amounted to €8,791k in the fiscal year tifiable obligations and risks at the reporting date on the basis of (2012: €11,344k).

130 BURDA Annual Report BURDA Annual Report 131 (12) Payables

Remaining terms to maturity under 1 year 1 to 5 years over 5 years Tot al k € k € k € k €

Bank loans and overdrafts 82,817 199,718 23,858 306,393 Customer advances 10,150 1 0 10,151 Trade payables 247,223 10 0 247,233 Payables to companies in which the Group has a participating interest 9,135 0 0 9,135 Other liabilities 84,433 4,330 0 88,763 Taxes 38,892 0 0 38,892 Social security obligations 2,742 0 0 2,742 Other liabilities 42,799 4,330 0 47,129

433,758 204,059 23,858 661,675

€34,174k of bank loans and overdrafts are secured by security (14) Hedging units (15) Contingent liabilities rights over real property, €14,862k by transfer of ownership of In addition, the Group is also subject to currency risks within machines, and €13,930k by assignment of accounts receivable The group has concluded interest rate swaps using matching the framework of its business activity. Hedging units are formed At the balance sheet date, the Group companies had contin- and by transfer of ownership of inventories. Subject to separate maturities to hedge against future interest rate fluctuations aris- between underlying transactions (purchase and sales transac- gent liabilities from guarantee agreements in the amount of disclosure, all payables due to companies in which the company ing from variable-interest bank loans. Hedging units are formed tions, which are very likely to be in foreign currency) and hedging €3,392k. As of the balance sheet date, there were no indica- has a participating interest would have to be disclosed as other between the amounts due to banks as underlying transactions, transactions in the form of forward currency contracts. Hedging tions for a possible claim, as there is a sufficiently high proba- liabilities. In the previous fiscal year, other liabilities related to and the hedging transactions in the form of interest rate swaps. based on portfolio hedges is undertaken in order to offset future bility that the underlying obligations will be fulfilled by the taxes amounted to €33,964k, and other liabilities resulting from Hedging based on micro-hedges is undertaken in order to offset cash flow fluctuations that are caused by changes in currency companies concerned. social security obligations amounted to €2,848k. future cash flow fluctuations due to variable interest rates. exchange rates. These forward exchange transactions show a These interest rate swaps show a nominal value of €70,576k and nominal value of €5,200k and a negative fair value of €79k. The a negative fair value of €3,919k. The nominal value of the under- nominal value of the underlying transactions is €7,263k, result- (16) other financial obligations

(13) Deferred tax liabilities lying transactions is €101,576k, resulting in a hedging scope of ing in a hedging scope of 71.6 percent. The fair values of the for- 2013 Statements Financial 69.5 percent. The net present value is used in order to deter- ward exchange transactions were calculated on the basis of To secure business operations, the Group companies enter The deferred tax liabilities arising in connection with Sec. 274 HGB mine the fair values of the interest rate swaps. This method cal- present value and option price models. The Group assesses the medium- and long-term rental contracts. Significant other finan- primarily result from lower tax-based values of fixed tangible culates the present values of the future payments up until the probability of occurrence of future underlying transactions as cial obligations resulting from these and other contracts existed assets. These were offset against deferred tax assets, most of end of the contract, taking as a basis the forward rates that very high, because for the most part these are predictable for- at the following amounts and due dates at the balance sheet date: which result from differences in tax-based values of pension were calculated on the basis of the yield curve. eign currency transactions. Furthermore, the hedging volume is accruals. In addition, deferred tax assets include losses carried The effectiveness of hedging activities with regard to the risk of distinctly below the scope of the hedged foreign currency k € forward, which will likely be used within the next five years. The changing interest rates was measured prospectively using the transactions. deferred tax assets remaining after the offset have not been critical term-match method and taking into consideration the The effectiveness of the hedging in regard to currency exchange a) Limited in time 278,984 capitalized in accordance with the option under Sec. 274 (1) financial standing of the hedge partner, as all parameters rele- risk is investigated prospectively and retrospectively using the Due in 2014 57,941 clause 2 HGB. vant to valuation match. The evaluation unit is thus 100 percent cumulative dollar offset method. The forward exchange transac- Due between 2015 and 2018 171,997 Therefore, the recorded deferred taxes result entirely from the effective. The interest rate swaps show the nominal values and tions show the following characteristics: Due after 2018 49,046 application of Sec. 306 HGB. The amount on the balance sheet maturities as of the balance sheet date: b) Unlimited in time (amount per year) 4,799 is based on the differences between the elimination of intercom- Nominal value Currency Due dates pany profits, the consolidation of debts, and the capitalization of Nominal value Euribor Remaining term in k € hidden reserves within the context of consolidation of equity. in k € to maturity At the balance sheet date, there were liabilities from initiated The tax rates for the respective Group units were applied for the 5,200 USD due in 2014 investment projects in property, plants and equipment in the valuation; these rates ranged from 10.0 percent to 34.1 percent. 50,000 6 months 9 Aug 2016 amount of €2,056k, as well as from miscellaneous other finan- 6,100 6 months 29 Mar 2018 cial obligations amounting to €24,861k resulting from contracted 6,000 6 months 9 Mar 2016 payments which were not yet due as of the balance sheet date. 5,000 3 months 30 Dec 2014 2,028 3 months 31 Mar 2019 1,448 6 months 30 Sept 2014

132 BURDA Annual Report BURDA Annual Report 133 (17) Sales revenues (21) Employees

k € Average number during the year

1. Classification by division 2,616,864 Industrial employees 1,011 Domestic Publishing 629,850 Salaried employees 8,828 Foreign Publishing 377,908 9,839 Digital 1,400,971 Comprising Printing 204,105 Male employees 4,654 Other 4,030 Female employees 5,185 379 of these employees were at proportionately consolidated companies 2. Classification by region 2,616,864 Domestic sales 1,689,895 Foreign sales 926,969 Number at year’s end

Number of employees 10,017

(18) Wages and salaries, social security, and expenses 380 of these employees were at proportionately consolidated companies 2013 Statements Financial related to retirement benefits and support

k € (22) Other information

498,972 The Munich-based companies zooplus AG and TOMORROW FOCUS AG and the Hamburg-based company XING AG are exchange-listed subsidiaries that are included in the consolidat- (19) Income from participating interests ed financial statement. In March 2013, December 2013 and February 2014, respectively, the Management and Supervisory k € Boards of these made their declarations of compliance with the German Corporate Governance Code pursuant to Sec. 8,766 161 AktG (German Stock Corporation Act) permanently available to shareholders on the Investor Relations pages of their respective websites, www.zooplus.de, www.tomorrow-focus.de and (20) Total audit fee www.xing.de.

k € Offenburg, 21 March 2014 Tot al 1,515 The Management Board Annual audit services 1,149 Other certification services 37 Dr. Paul-Bernhard Kallen (Chairman) Tax advisory services 92 Holger Eckstein Other services 237 Philipp Welte Stefan Winners

134 BURDA Annual Report BURDA Annual Report 135 Development of Fixed Assets of the Group

Acquisition/ Additions from Additions Disposals from Disposals Transfers Currency Depreciation Book value Book value Depreciation production costs changes in changes in translation (accumulated) 31 Dec 2013 31 Dec 2012 for the fiscal year Status 1 Jan 2013 consolidation consolidation effects group group

€ € € € € € € € € € €

Intangible assets 1,057,441,253.71 60,296,175.70 24,572,379.19 29,447,283.47 3,856,387.48 2,417,606.93 -1,275,355.50 688,953,575.62 421,194,813.46 427,636,800.52 67,525,022.50 Concessions, industrial property rights and similar rights and assets, and licenses in such rights and assets 310,195,986.89 13,713,525.92 23,456,802.70 5,767,040.54 3,841,438.75 1,732,699.15 -1,222,291.88 199,389,841.94 138,878,401.55 133,829,400.48 27,459,304.25 Goodwill 745,717,124.00 46,539,070.91 0.00 23,680,242.93 0.00 2,409,733.04 -47,618.48 489,563,733.68 281,374,332.86 292,279,257.22 40,065,718.25 Prepayments 1,528,142.82 43,578.87 1,115,576.49 0.00 14,948.73 -1,724,825.26 -5,445.14 0.00 942,079.05 1,528,142.82 0.00

Tangible assets 767,373,463.21 10,241,429.85 19,005,767.69 1,087,861.11 42,063,027.35 -7,873.89 -3,901,001.42 513,607,200.70 235,953,696.28 253,030,448.51 36,953,098.07 Land, similar rights and buildings, including buildings on leasehold land 324,185,516.71 3,207,041.86 512,955.33 0.00 25,380,960.92 0.00 -1,649,013.63 147,293,135.98 153,582,403.37 163,083,442.95 8,280,570.08 Technical equipment and machinery 295,873,969.61 5,426,969.03 2,495,903.57 0.00 9,553,690.86 34,426.71 -570,962.02 254,952,567.34 38,754,048.70 43,631,166.77 11,011,275.73 Other equipment, factory and office equipment 146,181,148.72 1,538,360.96 15,443,169.63 1,087,861.11 6,806,604.58 284,978.88 -1,673,428.60 111,361,497.38 42,518,266.52 45,183,010.62 17,661,252.26 2013 Statements Financial Prepayments and construction in progress 1,132,828.17 69,058.00 553,739.16 0.00 321,770.99 -327,279.48 -7,597.17 0.00 1,098,977.69 1,132,828.17 0.00

Financial assets 215,336,457.38 7,151,369.46 26,855,479.62 8,948,003.33 10,198,733.97 -2,409,733.04 -358,859.06 37,701,035.33 189,726,941.73 174,349,595.80 2,461,964.87 Participating interests 161,837,348.76 1,915,700.94 20,516,048.45 0.00 3,430,696.40 -500,012.69 0.00 18,956,033.72 161,382,355.34 144,467,318.03 588,000.00 Shares in affiliated companies 44,235,149.38 5,235,668.52 5,248,727.29 8,948,003.33 6,647,677.77 -1,909,720.35 -353,467.54 14,119,915.93 22,740,760.27 25,074,358.11 1,656,052.34 Loans to companies in which the company has a participating interest 851,534.85 0.00 61,911.58 0.00 0.00 0.00 0.00 329,547.35 583,899.08 720,948.60 198,962.10 Securities 8,186,787.29 0.00 0.00 0.00 92,487.43 0.00 -1.49 4,276,587.90 3,817,710.47 3,861,333.96 0.00 Other loans 225,637.10 0.00 1,028,792.30 0.00 27,872.37 0.00 -5,390.03 18,950.43 1,202,216.57 225,637.10 18,950.43

Totals 2,040,151,174.30 77,688,975.01 70,433,626.50 39,483,147.91 56,118,148.80 0.00 -5,535,215.98 1,240,261,811.65 846,875,451.47 855,016,844.83 106,940,085.44

136 BURDA Annual Report BURDA Annual Report 137 Shareholdings pursuant to Sec. 313 (2) HGB of Hubert Burda Media Holding Kommanditgesellschaft as of 31 December 2013

Shares in % Shares in % a) Fully consolidated companies Burda Grundstücksgesellschaft mbH & Co. KG, Offenburg 100.00 Hubert Burda Media Holding Kommanditgesellschaft, Offenburg Burda Grundstücksverwaltungsgesellschaft Objekt München mbH, Offenburg 100.00 Hubert Burda Media Holding Geschäftsführungs-GmbH, Offenburg 100.00 Burda Holdings (Thailand) Co. Ltd., Bangkok/Thailand 49.00 Abonnenten Service Center GmbH, Offenburg 100.00 Burda Holding Publishing Polska Sp. z o.o., Warsaw/Poland 100.00 Aenne Burda Verwaltungsgesellschaft mit beschränkter Haftung, Offenburg 100.00 Burda Immobilien GmbH, Offenburg 100.00 Altradia GmbH, Offenburg 100.00 Burda Information Services GmbH, Offenburg 100.00 amiando UK Ltd., Birmingham/Great Britain 100.00 1) Burda Intermedia Publishing GmbH, Munich 100.00 Amica Verlag GmbH & Co. KG, Munich 100.00 Burda Internetdienstleistungsgesellschaft mbH, Munich 100.00 Amica Verlag Verwaltungsgesellschaft mbH, Munich 100.00 Burda International GmbH, Offenburg 100.00 BDV Beteiligungen GmbH & Co. KG, Munich 90.91 Burda Magazine Holding GmbH, Munich 100.00 bestwetten.de GmbH, Baden-Baden 100.00 Burda Media Entertainment GmbH, Munich 100.00 bitiba GmbH, Munich 100.00 2) BURDA Media 2000 s.r.o., Prague/Czech Republic 100.00 BL Engineering Solutions Private Limited, New Delhi/India 51.00 Burda Media Polska Sp. z o.o., Wroclaw/Poland 100.00 Blumendepot GmbH, Mörfelden-Walldorf 100.00 Burda Media Service GmbH, Offenburg (in the future: Burda Service-Handel-Märkte GmbH) 100.00 BONAGO Incentive Marketing Group GmbH, Offenburg 75.10 Burda Medien Vertrieb GmbH, Offenburg 100.00 Brand Media Solutions GmbH, Offenburg 100.00 Burda News Druck GmbH, Darmstadt 100.00 Bunte Entertainment Verlag GmbH, Munich 100.00 Burda NG Polska Sp. z o.o., Warsaw/Poland 100.00 Burda (Thailand) Co., Ltd., Bangkok/Thailand 64.30 Burda NG Polska Sp. z o.o. Spol. Komandytowa, Warsaw/Poland 100.00 Burda Broadcast Media Baden-Württemberg GmbH & Co. KG, Offenburg 100.00 Burda Praha spol. s r.o., Prague/Czech Republic 100.00 Burda Broadcast Media Geschäftsführungs-GmbH, Munich 100.00 BURDA PRINT CEE s.r.o. - v likvidácii, Bratislava/Slovakia 100.00 Burda Broadcast Media GmbH & Co. KG, Munich 100.00 Burda Publishing Polska Sp. z o.o., Warsaw/Poland 100.00 Burda Broadcast Verwaltungs GmbH, Offenburg 100.00 Burda Publishing Polska Sp. z o.o. Spol. Komandytowa, Warsaw/Poland 100.00

Burda Ciscom GmbH, Offenburg 100.00 Burda Romania S.R.L., Bucharest/Romania 100.00 2013 Statements Financial Burda CN Polska Sp. z o.o., Warsaw/Poland 100.00 Burda Senator Verlag GmbH, Offenburg 100.00 Burda Communications Sp. z o.o., Warsaw/Poland 100.00 Burda Service AG, Basel/Switzerland 100.00 Burda Community Network GmbH, Offenburg 100.00 Burda Services GmbH, Offenburg 100.00 Burda Community Network International GmbH, Offenburg 100.00 Burda Singapore Pte. Ltd., Singapore 100.00 Burda Community Network International Italia S.r.l. i.L., Milan/Italy 100.00 Burda Sports Group GmbH, Munich 100.00 Burda Creative Group GmbH, Munich 100.00 Burda Taiwan Co. Ltd., Taipei/Taiwan 80.00 Burda Digital Commerce GmbH, Offenburg 100.00 Burda Verlag Osteuropa GmbH, Offenburg 100.00 Burda Digital GmbH, Munich 100.00 Burda Wireless GmbH, Munich 100.00 Burda Digital Systems GmbH, Offenburg 100.00 BurdaStyle, Inc., New York/USA 100.00 Burda Digital Ventures GmbH, Offenburg 100.00 Burda-Ukraina, Kiev/Ukraine 100.00 Burda Direct France SAS, Schiltigheim/France 100.00 BZV Zeitschriften Verlag GmbH & Co. KG, Munich 100.00 Burda Direct GmbH, Offenburg 100.00 BZV Zeitschriften Verlag Verwaltungs-GmbH, Munich 100.00 Burda Direct Interactive GmbH, Offenburg 100.00 Cellular GmbH, Hamburg 100.00 3) Burda Direkt Services GmbH, Offenburg 100.00 CHIP Communications GmbH, Munich 100.00 Burda Druck GmbH, Offenburg 100.00 CHIP Digital GmbH, Munich 100.00 BURDA DRUCK FRANCE SAS, Vieux-Thann/France 100.00 CHIP Holding GmbH, Munich 100.00 BURDA DRUCK INDIA PRIVATE LIMITED, New Delhi/India 100.00 Cinema Verlag GmbH, Hamburg 100.00 Burda Druck Nürnberg GmbH & Co. KG, Nuremberg 100.00 computeruniverse GmbH, Friedberg 100.00 Burda Druck Nürnberg Verwaltungs GmbH, Nuremberg 100.00 CP-Retail GmbH, Berlin 100.00 4) Burda Food Partners GmbH, Munich 100.00 Cyberport GmbH, Dresden 96.00 Burda France SAS, Paris/France 100.00 Cyberport Services GmbH, Dresden 100.00 4) Burda Gesellschaft mit beschränkter Haftung, Offenburg 100.00 daskochrezept.de GmbH, Wetzlar 100.00 Burda Glam AG, Basel/Switzerland 100.00 Debitor-Inkasso GmbH, Bad Schwartau 100.00

138 BURDA Annual Report BURDA Annual Report 139 Shares in % Shares in %

DLD Media GmbH, Munich 100.00 MFI Meine Familie und ich Verlag GmbH, Munich 100.00 DLD Ventures GmbH, Munich 100.00 Mirabo AG, Basel/Switzerland 100.00 edelight GmbH, Stuttgart 100.00 mobileminds GmbH, Munich 100.00 Editions DIPA Burda SAS, Schiltigheim/France 100.00 NetMoms GmbH, Cologne 100.00 3) EDITIONS HUBERT BURDA MEDIA SAS - PARIS, Paris/France 100.00 Neue Verlagsgesellschaft mbH, Offenburg 100.00 Editions Nuit & Jour SAS, Paris/France 100.00 OOO Burda Distribution Services, Moscow/Russia 100.00 Elitemedianet GmbH, Hamburg 100.00 3) OOO Everest Distribution, Moscow/Russia 100.00 Essential Publishing Limited, Colchester/Great Britain 100.00 OOO Press Point International, Moscow/Russia 100.00 Exposure Media Marketing Private Ltd., New Delhi/India 100.00 OOO TK Pressexpo, Moscow/Russia 100.00 fi services gmbh, Pleidelsheim 100.00 5) organize.me GmbH, Munich 100.00 3) Finanzen100 GmbH, Cologne 100.00 3) Ortenauer Papierverarbeitung GmbH, Offenburg 100.00 Fit for Fun Verlag GmbH, Hamburg 100.00 PaketPLUS Marketing GmbH, Berlin 50.08 Focus Magazin Verlag GmbH, Munich 100.00 P-Eleven GmbH, Hamburg 100.00 Focus Money Redaktions-GmbH, Munich 100.00 Pixelate Ventures Sp. z o.o., Krakow/Poland 100.00 Focus TV-Produktions GmbH, Munich 100.00 Playboy Deutschland Publishing GmbH, Munich 100.00 Freedreams B.V., Nimwegen/Netherlands 100.00 Publicité Nuit et Jour SARL, Paris/France 100.00 freundin Verlag GmbH, Munich 100.00 ROSEA Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt BURDA Medien Park KG, Düsseldorf 100.00 FTM Freizeit- und Trendmarketing GmbH & Co. KG, Cleves 100.00 ROSEA Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt BURDA Offenburg KG, Düsseldorf 100.00 FTM Freizeit- und Trendmarketing Verwaltungsgesellschaft mbH, Cleves 100.00 RPC Voyages SAS, Courbevoie/France 55.00 3) Globus Verlag GmbH, Munich 100.00 sevenload GmbH, Cologne 100.00 Grupo Galenicom Tecnologias de la Informacion (eConozco), S.L., Barcelona/Spain 100.00 1) Silkes Weinkeller GmbH, Velbert 74.90 HolidayCheck AG, Bottighofen/Switzerland 100.00 3) Smart Inkasso Service GmbH, Lüneburg 100.00

HolidayCheck Polska Sp. z o.o., Warsaw/Poland 100.00 3) STARnetONE GmbH, Berlin 100.00 2013 Statements Financial Hubert Burda Media France SAS, Paris/France 100.00 Super Illu Verlag GmbH & Co. KG, Berlin 100.00 Hubert Burda Media Hong Kong Limited, Hong Kong/China 100.00 Super Illu Verlag Verwaltungs-GmbH, Berlin 100.00 Hubert Burda Media India Private Limited, New Delhi/India 100.00 10betterpages GmbH, Munich 89.04 Hubert Burda Media Limited, Colchester/Great Britain 100.00 TF Digital GmbH, Munich 100.00 3) Hubert Burda Media UK LP, Colchester/Great Britain 100.00 The Entertainment Company GmbH, Offenburg 100.00 Hubert Burda Media, Inc., New York/USA 100.00 TOMORROW FOCUS AG, Munich 58.84 IGV-Treuhand GmbH, Offenburg 100.00 TOMORROW FOCUS Content & Services GmbH, Munich 100.00 3) INO24 AG, Pleidelsheim 86.08 TOMORROW FOCUS Media GmbH, Munich 100.00 3) ino24 clever versichert GmbH, Pleidelsheim 100.00 5) Tomorrow Travel B.V., Woerden/Netherlands 100.00 3) Institut für Medien- und Konsumentenforschung IMUK Geschäftsführungs-GmbH, Erding 100.00 TOMORROW Travel Solutions GmbH, Munich 100.00 3) Institut für Medien- und Konsumentenforschung IMUK GmbH & Co. KG, Erding 100.00 TOV Burda Distribution Services Ukraina, Kiev/Ukraine 100.00 Internet Magazin Verlag GmbH, Munich 100.00 Treehouse Sp. z o.o., Warsaw/Poland 100.00 InTime Media Services GmbH, Oberhaching 51.00 TV Spielfilm Verlag GmbH, Hamburg 100.00 jameda GmbH, Munich 100.00 3) tv.gusto GmbH, Cologne 83.50 Komunikace 2000 s.r.o., Prague/Czech Republic 100.00 Valentins GmbH, Mörfelden-Walldorf 100.00 kununu GmbH, Vienna/Austria 100.00 1) Valiton GmbH, Munich 100.00 Kurbaum GmbH, Baden-Baden 100.00 Verlag Aenne Burda GmbH & Co. KG, Offenburg 100.00 M.I.G. Medien Innovation GmbH, Offenburg 100.00 Verlagsgruppe Milchstrasse GmbH, Hamburg 100.00 matina GmbH, Munich 100.00 2) Verwaltungsgesellschaft MAX Verlag mbH, Hamburg 100.00 MAX Verlag GmbH & Co. KG, Hamburg 100.00 VSG Advertising Italy S.r.l., Milan/Italy 100.00 Media Market Insights GmbH, Offenburg 100.00 Webassets B.V., Zeist/Netherlands 50.99 3) Medienpartner International GmbH, Offenburg 100.00 XING AG, Hamburg 50.63 Meteovista B.V., Zeist/Netherlands 100.00 3) XING Events GmbH, Hamburg 100.00 1)

140 BURDA Annual Report BURDA Annual Report 141 Shares in % Shares in %

XING International Holding GmbH, Hamburg 100.00 1) MZV Export-Import Zeitschriften-Vertrieb Verwaltungs-GmbH, Unterschleißheim 40.00 XING Networking Spain, S.L., Barcelona/Spain 100.00 1) MZV Moderner Zeitschriften-Vertrieb GmbH & Co. Kommanditgesellschaft, Unterschleißheim 40.00 XING Switzerland GmbH, Sarnen/Switzerland 100.00 1) MZV Moderner Zeitschriften-Vertrieb Verwaltungs-GmbH, Unterschleißheim 40.00 Xino-Media GmbH, Offenburg 100.00 NEVA Media GmbH, Berlin 43.10 ZAO Burda Interaktiv, Moscow/Russia 100.00 Radio Arabella Studiobetriebsgesellschaft mbH, Munich 20.56 ZAO Sales, Moscow/Russia 100.00 Showroom Sp. z o.o., Warsaw/Poland 25.09 ZAO Verlagshaus Burda, Moscow/Russia 100.00 Tripsbytips GmbH, Berlin 35.20 zooplus AG, Munich 50.92 United Ambient Media AG, Hamburg 42.31 zooplus france S.A.R.L., Strasbourg/France 100.00 2) Webguidez Entertainment GmbH, Berlin 37.01 zooplus italia s.r.l., Genoa/Italy 100.00 2) zooplus Pet Supplies Import and Trade Ltd., Istanbul/Turkey 100.00 2) d) Companies pursuant to Sec. 296 HGB or Sec. 313 (2) no. 4 HGB zooplus polska sp. z.o.o., Krakow/Poland 100.00 2) Acton GmbH & Co Heureka KG, Munich 40.21 zooplus services ESP S.L., Madrid/Spain 100.00 2) Beijing Vogel Burda Media Advertising Ltd., Beijing/China 49.00 zooplus service Ltd., Oxford/Great Britain 100.00 2) Burda Hong Kong Limited, Hong Kong/China 82.15 Zoover France SARL, Courbevoie/France 100.00 3) Cyberport S.a.r.l., Luxembourg/Luxembourg 100.00 4) Zoover GmbH, Cologne 100.00 3) Dialog Service Center GmbH, Neckarsulm 50.77 Zoover International B.V., Zeist/Netherlands 100.00 3) Europe Online Deutschland GmbH, Munich 100.00 Zoover International Holland Filiaal, Zeist/Netherlands 100.00 3) FamilyBook GmbH, Cologne 100.00 3) Zoover Media B.V., Zeist/Netherlands 100.00 3) HolidayCheck France SAS, Paris/France 100.00 3) Zoover Travel B.V., Zeist/Netherlands 100.00 3) Gesellschaft für integrierte Kommunikationsforschung Verwaltungs GmbH, Munich 25.00 ZVB Zeitschriften-Vertriebs AG, Basel/Switzerland 100.00 IncGamers Ltd., Falkirk/Great Britain 33.33 Nachtagenten GmbH, Munich 29.97 b) Proportionately consolidated companies pursuant to Sec. 310 HGB NEVA Media GmbH, Berlin 43.10 2013 Statements Financial B+B Media Services GmbH, Offenburg 50.00 Online International Beteiligungs-GmbH, Munich 100.00 BB RADIO Länderwelle Berlin/Brandenburg Beteiligungs GmbH, Potsdam 50.00 Privatradio Landeswelle Mecklenburg-Vorpommern GmbH & Co. Studiobetriebs KG, Rostock 47.15 BB Radio Länderwelle Berlin/Brandenburg GmbH & Co. Kommanditgesellschaft, Potsdam – Group – 50.00 Privatradio Landeswelle Mecklenburg-Vorpommern Verwaltungs GmbH, Rostock 29.40 Burda Hearst Publishing GmbH, Munich 50.00 Studio Gong GmbH & Co. Studiobetriebs KG, Munich – Group – 41.67 DOGAN BURDA DERGI YAYINCILIK VE PAZARLAMA A.S., Istanbul/Turkey 48.61 Tifuve GmbH, Munich 100.00 2) Güll GmbH, Lindau 49.00 Virtueller Bau-Markt Aktiengesellschaft, Meerbusch 26.02 HPB Press Holding Sdn Bhd, Kuala Lumpur/Malaysia 50.00 Vogel Burda (Beijing) Advertising, Beijing/China 100.00 Musicstarter GmbH & Co. KG, Berlin 50.00 Vogel Burda Medya Yayimcilik ve Tic. A.A., Istanbul/Turkey 100.00 M.O.R.E. Lokalfunk Baden-Württemberg GmbH & Co. KG, Ulm 50.00 zooplus Eastern Europe TOV, Kiev/Ukraine 100.00 2) M.O.R.E. Lokalfunk Baden-Württemberg Verwaltungs-GmbH, Ulm 50.00 zooplus Kroatien d.o.o., Zagreb/Croatia 100.00 2) Presse-Service Güll GmbH, St. Gallen/Switzerland 49.00 zooplus Nederland B.V., Rotterdam/Netherlands 100.00 2) SEG Stegenwaller Entertainment Group GmbH & Co. KG, Essen 50.00 Zoover Internet Teknolojileri Tuzim Ticaret Ltd., Kusadasi/Turkey 95.00 3) SEG Stegenwaller Entertainment Group Verwaltungs GmbH, Essen 50.00 Zoover Italia SARL, Monza/Italy 95.00 3) TOO Burda-Alatau Press, Almaty/Kazakhstan 50.00 1) Indirect participating interest of XING AG c) Affiliated companies pursuant to Sec. 311 HGB 2) Indirect participating interest of zooplus AG AlphaSights Ltd., London/Great Britain 28.80 3) Indirect participating interest of TOMORROW FOCUS AG Dergi Pazarlama Planlama ve Ticaret Anonim Sirketi, Istanbul/Turkey 44.00 4) Indirect participating interest of Cyberport GmbH Escapio GmbH, Berlin 47.20 5) Indirect participating interest of INO24 AG Gesellschaft für integrierte Kommunikationsforschung mbH & Co. KG, Munich 25.00 Lidyana Elektro Hitzmetler Ithalat Ihracat Pazarlama A.S., Istanbul/Turkey 24.10 Mediaprint & Kapa Pressegrosso spol. s r.o., Prague/Czech Republic 38.78 MZV Export-Import Zeitschriften-Vertrieb GmbH & Co. Kommanditgesellschaft, Unterschleißheim 40.00

142 BURDA Annual Report BURDA Annual Report 143 The following translated auditor’s opinion relates to the German version of the complete consolidated financial statements and group management report:

The preceding consolidated financial statements and group possible errors, are taken into account in the determination of management report intended for publication conform with legal audit procedures. In the audit, the effectiveness of the account- requirements and supplementary provisions of the company’s ing-related internal control system and the evidence supporting Articles of Association. We have issued the following auditor’s the information in the consolidated financial statements and opinion on the complete (German version of the) consolidated group management report are assessed primarily on the basis financial statements and group management report: of random samples. The audit includes assessment of: the annual financial statements of the companies included in the consolidated financial statement; the definition of the consolidation Auditor’s Opinion group; the accounting and consolidation principles applied; and the significant estimates made by the company’s Management “We have audited the consolidated financial statements prepared Board and General Partner. In addition, it also includes evalua- by Hubert Burda Media Holding Kommanditgesellschaft, Offen tion of the overall presentation of the consolidated financial burg – comprising the balance sheet, profit and loss statement, statements and group management report. We are confident and the notes – and the group management report for the fiscal that our audit provides a reasonable basis for our opinion. year from 1 January to 31 December 2013. The company’s Our audit has not led to any reservations. Management Board and General Partner are responsible for In our opinion, based on the findings of our audit, the consolidat- the preparation of the consolidated financial statements and ed financial statements comply with the legal regulations and the group management report in accordance with the provisions of supplementary provisions contained within the company’s Articles German commercial law and the supplementary provisions of Association and give a true and fair view of the net assets, contained within the company’s Articles of Association. Our financial position and results of operations of the group, in accor- responsibility is to express an opinion on the consolidated dance with (German) principles of proper accounting and the financial statements and the group management report based supplementary provisions contained within the company’s Articles on our audit. of Association. The group management report is consistent with We conducted our audit of the consolidated financial statements the consolidated financial statements and as a whole provides in accordance with Sec. 317 HGB (German Commercial Code) an accurate view of the group’s position and accurately presents and in compliance with the (German) principles of proper audit- the opportunities and risks of future development.” ing adopted by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the audit in such a Karlsruhe, 26 March 2014 way that there is reasonable assurance of detecting inaccura- cies and violations that materially affect the presentation of the PricewaterhouseCoopers net assets, financial position and results of operations, as given Aktiengesellschaft in the consolidated financial statements and management report, Wirtschaftsprüfungsgesellschaft with due regard for general accepted accounting principles. Knowledge of the business activities and the economic and legal Andreas Fell, Wirtschaftsprüfer environment of the Group, as well as expectations in regard to Dr. Martin Nicklis, Wirtschaftsprüfer

144 BURDA Annual Report Imprint

Publisher: Burda GmbH Corporate Communications Arabellastraße 23, 81925 Munich Tel. + 49 (0) 89 92 50 25 75 www.hubert-burda-media.de www.burda-news.de

Oversight Philipp Wolff Management Julia Korn Managing Editor Bernd Hölzner Art Direction Marcus Reichle Editorial Support Christin Apel, Christiane Blana, Verena Bücher, Jonas Grashey, Berthold Heidbüchel, Lisa-Marie von Raepke, Marianne Lena Reif, Alice Schwetz, Dorothee Stommel Production Michael Schekatz Group Management Report Heinz Spengler

Publishing Company: Burda Creative Group GmbH Arabellastraße 23, 81925 Munich Tel. + 49 (0) 89 92 50 13 20 www.burdacreativegroup.de

Management and Concept Christine Fehenberger Editor-in-Chief Fabrice Braun Managing Editor Britta Schmidt Managing Editor, International Susan Sablowski Art Direction Veronika Schmidt Authors Christoph Henn, Alexandra-Katharina Kütemeyer, Anne Lehwald, Anatol Locker, Niclas Müller, Lisa von Ortenberg, Sascha Sarmast, David Schumacher Editors Leonie Adeane, David Barnwell, Richard Mote, Asa Tomash Photo Editors Michaela Beck, Anka Müller Image Processing Silvana Mayrthaler Proofreader Asa Tomash Production Wolfram Götz (Dir.), Rüdiger Hergerdt, Cornelia Sauer

Printing Kastner & Callwey Medien GmbH Paper Sirio Pearl Ice white, 300 g/m2; PlanoScript, 120 g/m2; Argenta matte satin, 90 g/m2

Photo Credits 04, 06, 08, 44-49, 78-83 Michael Hudler; 04, 10-17 Stefen Chow; 04, 18- 25, 26-35, 36-43, 72-77 Robert Fischer; 50-55, 66-71 Matthias Haslauer; 56-65 Martin Adolfsson, Illustrations: 86-92 Clemens Maurer