GRUNER + JAHR AG & Co KG I WWW.GUJ.COM

ANNUAL REPORT 2003

INNOVATION ANNUAL REPORT 2003

COVER Searching for the New: Photo session for the Polish magazine GLAMOUR (see detailed report, p. 30) 04 GRUNER + JAHR I ANNUAL REPORT 2003 CONTENTS I GRUNER + JAHR 05

10 30 36 66

CONTENTS

06 FOREWORD 24 “HAVE FAITH IN YOURSELF” 38 “INDEPENDENCE IS THE KEY TO REPORTS Dr. Bernd Kundrun: Gruner + Jahr will continue on its In an interview, BRIGITTE editor-in-chief Andreas OUR SUCCESS” 42 MAGAZINE DIVISION GERMANY course of growth by investing in innovations Lebert explains the success of the BRIGITTE brand Interview with Executive Board Member Angelika 44 NEWSPAPER DIVISION/BUSINESS PRESS GERMANY Jahr-Stilcken on journalistic principles at Gruner + Jahr 46 MAGAZINE DIVISION INTERNATIONAL 48 PRINT DIVISION 10 A GUIDE TO GROWING UP 28 KID’S ROOM – MELTING POT 49 CORPORATE DEVELOPMENT How NEON gives insights into the lives and attitudes How the US magazine PARENTS is taking the Spanish- 52 THE LIVING ELBE 50 CENTRAL SERVICES of the twenty-somethings speaking community by storm How Gruner + Jahr is committed to protecting the full 58 ENVIRONMENTAL REPORT 2003 stretch of the Elbe across national borders 62 CORPORATE RESPONSIBILITY REPORT 2003 16 THE FRENCH REVOLUTION 30 BEAUTY FROM WITHIN How TÉLÉ 2 SEMAINES became Europe’s most How GLAMOUR helps to create a new self-awareness 66 THE POWER OF IMAGES FACTS & FIGURES successful new publication among women in Poland How Gruner + Jahr became an acknowledged 72 GLOBAL BALANCE SHEET institution for exhibitions of artworks and photographs 77 PRINCIPAL SUBSIDIARY AND ASSOCIATED UNDERTAKINGS 20 EXPLORING NEW TERRAIN 36 I SHOP, THEREFORE I AM 77 SUPERVISORY/EXECUTIVE BOARDS How Gruner + Jahr works in Russia How a new European magazine format was born 78 CHRONICLE 1948 – 2003 when SHOPPING came onto the market 81 MASTHEAD 83 PORTFOLIO 06 GRUNER + JAHR I ANNUAL REPORT 2003 FOREWORD I GRUNER + JAHR 07

GROWTH THROUGH INNOVATION Gruner + Jahr will continue to grow thanks to investments in innovative publishing concepts. In addition to reinforcing its core business, expansion on the international growth markets is also an important item on the agenda of the biggest magazine publishing house in Europe.

2003 WAS A YEAR OF INNOVATIONS FOR GRUNER Our core activities in Germany and other coun- + JAHR. New projects were launched in various tries form the broad base on which our business parts of the world, creative concepts were devel- stands. We made substantial investments in the oped and ideas were born. This process of innova- expansion and ongoing development of our strong tion was initiated in 2003, will bear its first fruits in brands during 2003. Our established titles are the 2004 and continue in the years ahead. pillars that support our group’s success. When mar- ket conditions are unfavorable, they need careful Despite the difficult environment prevailing in nurturing and new investment. 2003, Gruner + Jahr, Europe’s largest magazine pub- lisher, once again set standards for corporate suc- Quality is the watchword for G+J’s strong mag- cess and return on sales. Although sales revenues azine brands, both in Germany and internationally. were down and the slump in sales of advertising Their journalistic and technical quality is what sets space continued, operative earnings rose to EUR them apart from the competition. Their names stand 238 million, equivalent to a 9.6 percent return on throughout the world for journalistic competence sales and 1.3 percentage points up on the previous and credibility guaranteed by highly professional year. ROS would have been even higher at 12.1 editorial staffs. The year 2003 saw further invest- percent had it not been for the substantial invest- ments in the editorial skills and creative resources ments made in our publishing business. behind our established titles, to ensure that our strong magazine brands are constantly adapted to We had laid the foundations for this perfor- suit the changing needs of their readership and the mance in the earlier years, by taking quick action to market. These top brands are the basis for our cut costs before it was too late, and also to concen- international growth and for the further innovative trate Gruner + Jahr’s activities on its core business expansion of our brand families with which we fields. Gruner + Jahr has since pursued a well- strengthen the leading positions of these brands balanced corporate strategy. We generate a healthy in different markets. return on sales, while at the same time investing in areas destined to produce growth in the future. Our innovation offensive is two-pronged – it We also take risks because willingness to accept seeks to consolidate and strengthen our core busi- mistakes is a key feature of any bold business poli- ness, and is also one of the elements in our growth cy. Success is impossible without taking risks. No strategy. Companies and publishers are locked in a risk, no gain. struggle, not merely over price and quality, but also Dr. Bernd Kundrun, President and CEO of Gruner + Jahr 08 GRUNER + JAHR I ANNUAL REPORT 2003 FOREWORD I GRUNER + JAHR 09

over leadership in innovation. It is becoming more + Jahr’s very existence depends on the credibility Gruner + Jahr’s French and European magazine in the international markets will be a significant and more important to have ideas and to use them of its titles and the company must defend these business, with sales now running to around 2 mil- growth factor in 2004. We plan to intensify our ac- because innovation is the only way to achieve the ne- against increasing pressures from media agencies lion per issue. tivities in the growth markets of Asia and Eastern cessary growth impetus in business and in society and industrial advertisers, especially at times when Europe where we are already active, and to get star- as a whole. Because every company needs to in- the economic situation is far from favorable. Gruner + Jahr can also report success in its ted on developing new markets for Gruner + Jahr troduce innovations systematically, we are working German domestic market, where it remains market products in other countries. on the introduction of the kind of changes in our cor- In addition to consolidating our core business leader with EUR 618 million gross advertising rev- porate culture that will give our highly capable staff and revitalizing our main brands, our innovation of- enues, EUR 88 million ahead of its nearest compet- Gruner + Jahr, Europe’s largest magazine pub- more scope to develop their creativity. fensive is based on three distinct strategies – first, itor. That means that one in every six euros invested lisher, once again set standards for corporate suc- the development of line extensions, and second the in advertising in a German magazine catering to the cess and innovation in 2003. Growth is now a prio- As part of a strategic process introduced at transfer of brands and concepts from one country general public goes to a Gruner + Jahr title. This clear- rity on our agenda. The foundation for continuing Gruner + Jahr in 2003, we are now working on pro- to another. Exporting titles such as GEO and CAPI- ly confirms the quality and performance of our titles commercial success in the years to come will, as in jects – selected from an abundance of new ideas – TAL has always been one of Gruner + Jahr’s in a bitterly competitive situation. the past, be the independence and the journalistic that will generate the growth sources of the future. strengths. Third, the development of completely quality of our magazines. Read about some of the Our global offensive of new titles and projects bears new, independent magazines. We have successes Although the economy in general and the ad- innovations in the world of Gruner + Jahr on the fol- the title ”Innovation Now!”. in all three of these strategies. vertising space market in particular are expected to lowing pages. We wish you pleasant reading. pick up only slightly in 2004, this will nonetheless This innovation offensive is driven by journalistic One of the year’s outstanding successes is de- contribute to growth. Gruner + Jahr is aiming to values. We research the interests of our readership scribed on page 16 of this report. Gruner + Jahr’s achieve moderate sales growth despite difficult and formulate solutions to satisfy them. After all,in French subsidiary Prisma Presse achieved one of operating conditions and will also be prepared to ma- the final analysis it is the market, i.e. our readership, the most impressive European magazine launches ke further investments in its publishing business. that tips the balance between success and failure. of the postwar period with TÉLÉ 2 SEMAINES, a The solid foundations laid in 2003 will form a basis Our corporate creed is that new titles must satisfy magazine containing two weeks of TV programs. for further growth. Gruner + Jahr has both the ide- the highest standards of quality and journalistic The first issue sold over one million copies, and the as and the financial resources to achieve further independence in their respective segments. Gruner magazine promises to become a major pillar of growth in 2004, in Germany and beyond. Expansion

Dr. Bernd Kundrun President of the Gruner + Jahr Executive Board

EBITA ROS EXTERNAL SALES EUR mill. EUR + 4 MILL. in % + 1,3% POINTS EUR mill.

238 234 9.6 938 613 Europe United States 8.3 (and other countries) 25 %

38 % 117 3.9

37 %

930 Other facts and figures on the 2001 2002 2003 2001 2002 2003 Germany fiscal year 2003: pages 72–76 pro forma pro forma 10 GRUNER + JAHR I ANNUAL REPORT 2003 INNOVATIONS I GRUNER+JAHR 11

A GUIDE TO GROWING UP How STERN’s innovative youth magazine NEON illuminates the world of the twenty-something community each month. INNOVATIONS I GRUNER + JAHR 13

Broad range of subject matter: Editor Oliver Stolle (left) and Art Director Gunter Schwarzmaier

YOU DON’T NEED TO HANG OUT in the bars of Ber- never been unemployed before,” explains Klotzek. lin, the clubs of Hamburg or even the pubs of Co- He was still working on the farewell edition of Jetzt logne to find out what Germany’s twenty-some- when he took a phone call from Andreas Petzold, things are thinking and feeling these days. Instead, editor-in-chief at STERN magazine. “I guessed they head down to Berg am Laim, a somewhat sleepy wanted to offer me a job or write a story on us,” suburb of Munich and home, since the summer of Klotzek remembers. 2003, to the editorial office of NEON, the most recent addition to the STERN magazine portfolio. The STERN editors and publishers wanted Housed in an unremarkable office block, NEON and more than that. For some time already, the idea of its team have earned their spurs as guides through a younger magazine to take its place alongside a world of emotion and experience for an age group STERN had been brewing in Hamburg. that had hitherto escaped categorization of any kind. This young general-interest magazine, sub- Gruner + Jahr wasted no time in drawing upa titled “It’s time we grew up” seems to have struck contract to develop a magazine “that can also be a nerve with 20 to 29-year-olds, both male and fe- shown to the board of directors” with the working male. Companies are lining up to benefit from title “NAME.” The development team moved in- NEON’s insights. “We can’t keep up with all the re- to an open-plan office in the basement of the pub- quests for presentations from firms ,” says Timm lisher’s Munich branch. The three founders were Klotzek, one of NEON’s two chief editors. joined by another three colleagues and set to work in November 2002. Klotzek still speaks high- A year before NEON was launched, the future ly of how the publishers “gave us time and space did not look the slightest bit rosy for Klotzek or his to create something. We spent a lot of time going co-founders Michael Ebert and Mirko Borsche. In for walks, sitting in cafés or in the bathtub. We July 2002, the ongoing advertising and media crisis knew that we wanted our magazine to appeal to in Germany created one of its most prominent casu- young men and women and we were looking for the launched alties. The Süddeutsche Zeitung announced it was common denominator. If someone had come into 2003 closing down Jetzt magazine, its prizewinning, high- our editorial office back then, they would probably circulation ly praised but economically unviable youth sup- have wondered: What on earth are they doing?” 96,000 plement. All three NEON creators worked there. The essence of their musings materialized at published Free and undisturbed: NEON makers “We were massively disappointed, most of us had the beginning of 2003 with the leitmotif : “It’s time monthly Michael Ebert (left) and Timm Klotzek 14 GRUNER + JAHR I ANNUAL REPORT 2003

Close contact to readers: Editor Corinna Teresa Bix (left);

Graphic artists Sandra Eichler (left) and Sarah Illenberger (opposite page)

we grew up.”As Klotzek explains: “Our aim was to months. The core team of six in Munich worked define the magazine in one sentence. We found out round the clock on the concept, framework, layout that men and women in this age group are very pre- and content. They came up with unusual names for occupied with their future. The many topics, rang- regular features: Wild World (short stories about ing from final school exams to their first job, thinking people), Seeing (themes in politics and society), about starting a family and worrying about the fu- and Feeling (love, friendship, sex, psychology). ture, were easily enough to fill a magazine.” The new magazine was finally given a name deri- They set out for Hamburg armed with their single ved from the Greek word neos, signifying “trans- statement and seven rough pages outlining target parency, light and clarity.” As production pro- group, publication cycles, the general parameters gressed, the magazine’s founders joined the for the magazine. Without recourse to powerpoint STERN advertising heads to visit potential adver- presentations or finished layouts, they succeeded tisers. “In the wake of the Jetzt experience, finan- in winning over STERN magazine’s chief editors as cial success was just as important to us as recog- well as publishing house executives. nition,” stresses Klotzek.

“Nobody had dared to try a unisex magazine in 150,000 copies of NEON hit the newsstands on this age bracket before,” says STERN editor-in- June 23, 2003 of at a cover price of € 2.50. Of the chief Andreas Petzold, who, along with fellow 180 pages, 41 were taken up by advertisements. STERN editor Thomas Osterkorn, is NEON’s pub- Feedback was stronger than anticipated. Daily lisher. In March 2003, given the magazine makers’ newspapers, press agencies, magazines and radio “proximity to readers,” the brave decision was stations reported on the launch with detailed taken to launch a pilot edition of NEON as early as reviews. Within the first few weeks, the online June, without the usual rigmarole of market re- guestbook had around 1,900 positive reactions. search dummies. “We could have gotten it wrong, of course. But Following a three-month trial period, Gruner + we felt positive, we felt the editorial staff knew the Jahr decided to put NEON into monthly produc- target group they were writing for,” says Petzold. tion starting January 2004. Today, the production team consists of fifteen people – a wonderful ex- STERN Editor-in-Chief “Suddenly things got serious,” Klotzek recalls. ample of how brand-new opportunities can arise Andreas Petzold knew The pilot issue had to be ready in barely three out of defeat. the concept was good 16 GRUNER + JAHR I ANNUAL REPORT 2003 INNOVATIONS I GRUNER + JAHR 17

THE FRENCH REVOLUTION How Prisma Presse compiled a unique database and laid the foundation in November 2003 for one of Europe’s most successful launches.

Success means believing in what others consider impossible: Rémy Pernelet, Editor-in-Chief of TÉLÉ 2 SEMAINES in Paris 18 GRUNER + JAHR I ANNUAL REPORT 2003 INNOVATIONS I GRUNER + JAHR 19

Innovative idea: The editorial staff use a database to auto- matically provide content for the layout

WHEN ALL THE SUCCESS STRIKES HIM as too successful bi-weekly market for over a decade, simi- its weight in gold: comprehensive information was a winner” says Berriat. “Our quota with TÉLÉ 2 good to be true, Rémy Pernelet glances over at a lar plans in France had always failed because the available for more than100,000 programs. “What SEMAINES was between 60 percent and 75 percent.” Chinese proverb hanging above his desk, “Whoever program schedules supplied by television channels makes our database so special,” continues Berriat, Not even the optimistic magazine creators is first in the field and awaits the coming of the would arrive at such short notice. The magazine mak- “is the link to the layout program, which in turn pro- themselves could fail to be surprised by the per- enemy will be fresh for the fight; whoever is second ers had a mere 36 hours to complete their editorial cesses the data in a print-ready format.” This is the formance of the first nationwide issue in January in the field and has to hasten to battle will arrive content for the second week of programming, an key to production for TÉLÉ 2 SEMAINES. 2004. Accompanied by a major advertising cam- exhausted.” insurmountable task in the light of some 60 to 70 There was a lot of ground to be covered until the paign, TÉLÉ 2 SEMAINES hit the newsstands on If the Chinese master Sun Tzu, who penned The channels and the detailed descriptions, ratings and database had “learned“ that a particularly lengthy January 5. After the lifting of the TV ban for print Art of War over two and a half thousand years ago, layout required. article was required for the “program of the day” or media, Prisma Presse became the first publisher is right, then Pernelet, the man behind France’s that the lead actor’s name should be in bold letter- to buy television advertising. “We started with a first bi-weekly TV guide TÉLÉ 2 SEMAINES, will be Making the impossible possible came down to ing or italics. Over 50,000 lines of programming print run of 800,000 and expected to sell 500,000.” ready for any “attack” by the competition. In fact, the publisher systematically improving its own code had to be written.Then, the ready-to-print pages When the first sales figures came in, the decision says the editor-in-chief, “I’m surprised that our com- data programming. Denis Berriat, divisional head could be produced more or less by hitting a button. was made to print another 700,000 copies. All in all, petitors have been so quiet for so long.” of publishing in program formats tells us how: over a million magazines were sold. “There was nothing on the market which matched The program section was initially divided into When Prisma Presse, the French subsidiary of our needs, so in the mid-nineties we set about de- genres, but Pernelet’s innovative concept went fur- Berriat and Pernelet knew better than to rest Gruner + Jahr announced at the end of 2003 that it veloping our own software for our weekly TV mag- ther, introducing various special sections, generous on their laurels. April 2004 saw the premiere of intended to launch a bi-weekly TV magazine, it sig- azine TÉLÉ LOISIRS.” launched layouts, double-page features and large-scale pho- their second bi-weekly TV guide publication, TV nalled an end to eighteen years of peace in the For every film, every series, every documentary, 2003 tographs. Months of preparation culminated in a re- GRANDES CHAÎNES. Prisma Presse intends to television listings segment. “It was not a new idea a wealth of detailed information was compiled in- circulation gional release of the finished item in November defend its market superiority indefinitely. as such,” explains Pernelet, “but it had been consid- cluding directors, actors, lead roles, countries, first 1,607,000 2003. The result in the Rhône-Alps was promising. As the Chinese master Sun Tzu so wisely put it, ered impossible.” While Germany had sustained TV dates shown, genres, short and long reviews. As published “If more than 50 percent of the initial buyers come “The exemplary strategist attacks while his enemy Spielfilm, TV Movie and TV TODAY and had had a time progressed, the database proved to be worth every two weeks back for the second issue, then we will have backed is still making plans.” 20 GRUNER + JAHR I ANNUAL REPORT 2003 INNOVATIONS I GRUNER + JAHR 21

EXPLORING NEW TERRAIN How an unconventional attitude and creative organizing skills became Gruner + Jahr’s key to success in Russia. 22 GRUNER + JAHR I ANNUAL REPORT 2003 INNOVATIONS I GRUNER + JAHR 23

Sales Manager Roman Improvisation and Bogolepov by the ramp of pioneering spirit: CEO Dr. Olaf a mobile newsstand Hengerer with Julia Lee

YOU DON’T NEED MUCH ROOM to produce a mag- yourself be intimidated, you might just as well pack azine in Russia, and office rentals in Moscow are pri- up shop straightaway.” cey. So Olga Mareeva, the editor-in-chief of GEO- launched LENOK, the children’s and teens’ offshoot of the Though Moscow now has entire streets full of 2001 Russian edition of GEO, is sqeezed into an office of exclusive boutiques and probably more luxury lim- circulation just six square meters of together with two other ousines than Los Angeles, its market for mag- 120,000 editors. A layouter and a photo editor in the next of- azines still has a long way to go before it reaches fice complete the team. The editorial staff of GEO- Western standards. There is no reliable data on cir- FOCUS works under similar, highly productive yet culation or coverage, and not even a properly func- cramped conditions. Eight editors occupy a space tioning distribution system. Gruner + Jahr was the of 25 square meters, working with such concentra- first publisher to print a recommended retail price tion that you can almost see the mental energy buzz- on the magazine cover when it launched GEO in ing around the room. Their editor-in-chief Nadezhda 1998. Price recommendations were unknown in Moiseeva prefers some seclusion, so she has set up Russia at that time. “There is still no retail price fix- a row of plants behind her computer monitor. “But I ing even today,” says G+J Sales Manager Roman usually take proofs home with me in the evening to Bogolepov. But price margins have been slimmed correct,” she says. down quite a bit. launched 1998 G+J Russia’s offices on the fifth floor of the of- Creating a functioning distribution system is circulation fice building on Shmitovsky Prospect have been too just one of the many problems facing companies 100,000 small ever since the launch of the two new titles trying to develop the magazine market. With a pop- GEOLENOK and GEOFOCUS in 2003. “350 square ulation of around15 million, Greater Moscow alone meters for four editorial staffs, plus development has 40 different magazine wholesalers supplying departments, space sales, magazine sales and 3,500 kiosks, plus 1,000 private dealers hawking administration are simply not enough,” admits CEO only a small selection of the available titles from their Olaf Hengerer, whose own office doubles as a con- mobile stands. Because feedback from the market ference room. He would dearly like to rent more is totally lacking, Bogolepov employs students to space, but is making slow progress with the poten- check whether his titles are available everywhere. tial landlords. “We have even considered working in shifts,” he says. Although the market in Moscow is difficult enough, it is heaven compared with the more re- Anyone seeking success in present-day Russia mote regions of this vast country. Russia covers an launched has to learn to think unconventionally. What to do area of over 17 million square kilometers, nearly 2003 when a whole issue of GEO printed outside Rus- 50 times the size of Germany, but its population circulation sia gets stuck in customs because the customs of- of 150 million is not quite double that of Germany. 71,500 ficers suddenly want to see a non-existent hygiene A magazine takes four days to travel to Novosi- certificate? Where to look when a whole truckload birsk. So GEO editor Vladimir Potapov is very proud of magazines disappears in Belarus? How to react of the fact that only 30 percent of each issue is now when a PR agent suddenly arrives accompanied sold in Moscow. The figure used to be 80 percent. by three ominous-looking heavies and suggests that it would be wise to accept 250,000 dollars in Despite all his problems, Hengerer would not cash in return for featuring a particular, well-known swap jobs with any of his CEO colleagues in the industrial magnate’s wife on the cover of GALA? West. “I can’t imagine a more exciting job. Nothing “Making threats is still a recognized business prac- really seems to work here, but somehow or other tice in Russia,” says Hengerer calmly.“But, if you let it always works out.” launched Chief editors in Moscow: Vladimir Potapov, 2003 GEO (left top); Olga Mareeva, GEOLENOK (left) circulation and Nadezhda Moiseeva, GEOFOCUS (right) 43,000 24 GRUNER + JAHR I ANNUAL REPORT 2003

“HAVE FAITH IN YOURSELF” How BRIGITTE remains true to its philosophy despite reinventing itself every two weeks: The innovative strength of the BRIGITTE brand now supports an entire magazine family. An interview with Andreas Lebert.

BRIGITTE celebrated its Golden Jubilee in May of life, its essential message is “you are just fine the 2004. How does it manage to stay so young? way you are, have faith in yourself, forget about doing everything right all the time.” BRIGITTE helps Magazines are ageless. BRIGITTE has to reinvent relieve the pressure, offers consolation and encour- itself every fortnight. It reflects the present and agement in this jungle we live in. looks to the future. That is why we have chosen the motto “50 years in the present” rather than a birth- A whole range of new titles is going after the day party looking back on history. young women’s market at the moment. Do you see them as a threat to BRIGITTE? Where does this sentence come from? “Women are warm, brave and capable, they take care of their BRIGITTE reaches younger women as well, but its looks, are both lover and mother to their husbands. main audience is more adult, as it always has been. His wishes are her wishes”. It would not make sense for BRIGITTE to focus on this other, much younger group. We have con- Well, considering you’re asking me, I guess you sciously targeted a younger readership with BRI- read it in BRIGITTE. GITTE YOUNG MISS and for the more mature readers, we have introduced BRIGITTE WOMAN. Right, it’s taken from one of the first issues of Our family of brands thus covers all stages of BRIGITTE and describes how women were per- life, and addresses different aspects, e.g. as BRI- ceived in the 1950s. Could you come up with GITTE KULTUR BRIGITTE COOKIE and BRIGITTE something similarly short and unsweet for the BALANCE. women of today? What is the key to BRIGITTE’s success over a per- I can give it a try. Today’s woman is self-confident, iod of 50 years? How has it defended its position she embraces change, she searches tirelessly for as the number one classic women’s magazine meaning and joy in her life. Easy answers are not an since 1974? option. A job or career is no more the sole aim in life than is marriage or family. Managing a number BRIGITTE takes its readers seriously. Our editorial of tasks simultaneously is her strength, but more team is very big, almost one hundred staff, pre- importantly, she enjoys it and finds it satisfying. dominantly female. All of them are experienced journalists, both the younger ones and the more A fan from the very Sounds like the BRIGITTE target group … mature ones. Not the type to be ordered around. beginning: Andreas Lebert , The secret to BRIGITTE’s success is this: They Editor-in-Chief of BRIGITTE Exactly. These are the women we are addressing. create a magazine that they themselves like to BRIGITTE’s great strength is that it respects all ways read. This may sound a little unusual in the media 26 GRUNER + JAHR I ANNUAL REPORT 2003 INNOVATIONS I GRUNER + JAHR 27

business, but there is a complete absence of cyni- in an eight-square-meter space. Why do people, of dresses this phenomenon in a very modern and suit- profile. DER SPIEGEL, STERN magazine and FOCUS cism. You won’t hear anybody saying “we’d like to their own free will, opt for the cramped space on a “BRIGITTE ably sensuous fashion. all had cover stories which would not have been out do this but it will have to be done differently for our boat? Hey presto, we have entered the world of BRI- has always of place in a women’s magazine. We didn’t decide readers.” I have never known such a strong sense GITTE, everyday drama and relationship issues. stood for Nevertheless, aren’t you afraid of losing a genera- to leave politics out, it was the sign of the times. of identification between an editorial staff and its Psychology is a major player for us. Bringing the tion of younger women to magazines like Glamour readership. What’s more, we take great care of our outside world into BRIGITTE is very exciting. quality jour- in the long run? Where does BRIGITTE stand today? readers. We have eight “letter editors“ dealing with nalism and a daily lot of up to 500 letters. What about the annual, perennial re-run of the I don’t know if all young women can be won over Ursula Ott’s column is quite forthright, politically. BRIGITTE diet? will continue to BRIGITTE. I do know, however, that we should We have interviewed people like Renate Schmidt Are you, as editor-in-chief, the man who really to do so.” not give BRIGITTE a more youthful facelift for and Ulla Schmidt. There are lots of examples. Spe- understands women? Or could one say, the man It is far from being the same thing every year. Its the sake of a few readers. All in all, we still have cials on “Afraid of losing your job?”, specials on the who stands over and above women? reputation is built on being the best and most reli- more young readers than any of the new women’s environment like “And the world can be saved”; able. So we are at great pains to react to the latest magazines. Our research tells us that lots of women reports from Baghdad and Afghanistan; essays such My personal history has a lot to do with the fact that findings. Every year we sit down and discuss how switch to BRIGITTE when they leave their par- as “What is justice today?” or recently a conver- I hold this position. Both my parents were journa- to approach things differently. What is our central ents’ home to set up their own. They feel it is time sation with a young Turkish woman in Berlin “Take lists, both worked for BRIGITTE. I was a depart- theme? I enjoy taking part in meetings like these. I to leave amusing but superficial magazines behind her headscarf away.” Elke Heidenreich was the mental head here back in the 1980s. When Anne get a kick out of coming up with new angles. Our and move on to one which is a help to them in first to criticize the “It’s cool to be a penny-pincher” Volk, editor-in-chief for many years, retired a year recipes taste good. That is not only a key concern, their daily lives. campaign in her BRIGITTE column. We have arti- and a half ago, the publishers were keen to find so- it is also the unmistakable trademark of the BRI- cles which, without being purely political, definite- meone who knew BRIGITTE inside out and what it GITTE diet. Can you prove that? ly have a political slant. stood for, regardless of that person’s gender. freundin, an acknowledged competitor, pronounc- A sociological study by the Rheingold Institute How do you see the future of BRIGITTE? Having developed such ambitious and innovative ed a “quality offensive” in March. Are you worried? revealed the following analysis. Newer publications publications as the magazine section of the Süd- such as Glamour, for example, are associated with A magazine has to be prepared for the future, of deutsche Zeitung and the Leben (Life) supplement No. freundin has always done best when it has come a sense of indulgence, a regressive world of girls course, and we are indeed looking ahead. Any dis- in the newspaper Die Zeit, are you not afraid of closer to BRIGITTE. They’ve realised that now. We and fairy tales. It may be that a woman of 40 has this cussion on BRIGITTE in the future necessarily boredom setting in as overseer of the annual don’t need a “quality offensive”, BRIGITTE has al- feeling once in a while as well. Young women, includes a look at the market itself. The market for BRIGITTE diet? ways been synonymous with quality journalism and meanwhile, have a more grown-up wish for women’s magazines in Germany is one of the most nothing is going to change that in the future. something more tangible. Interestingly enough, we competitive at all. We are the most expensive in our Objection! Right down the line. My role here is found that 30-year-olds read BRIGITTE Woman. It’s segment, but certainly also the most sophisticated neither boring nor unchallenging. It’s quite simple, Following BRIGITTE WOMAN, BRIGITTE YOUNG as if they want to look into the future. and the best in terms of quality. BRIGITTE is going BRIGITTE can handle any subject one can think MISS, BRIGITTE KULTUR and BRIGITTE COOKIE, to stay that way. We will increase our expertise in of. Give me an absurd topic and I will make it fit you launched a fifth offshoot entitled BRIGITTE Back in the 1970s and ‘80s, BRIGITTE had a greater the areas which we have developed over the past into BRIGITTE. BALANCE. What is behind these line extensions? social and political relevance. 50 years. In culture, for example, or society, fashion, Let’s take sailing ships, for example. We see them psychology, medicine and current affairs. By cover- launched all the time on the Elbe River from our press of- The line extensions address for specific themes in I don’t agree. That view really harks back to the ing all these areas, the dynamic BRIGITTE family 1954 fices, here on Baumwall. The theory goes as fol- a specific period of your life. BRIGITTE BALANCE ’90s, which was a notoriously difficult time for the of brands will remain the strongest player on the circulation lows: More and more people are buying these works on the premise that we all live in a world of media to introduce political themes, not just at BRI- German market. 800,801 vessels. We can write about that, no problem. Only contrasts. Job and children, career and leisure, re- GITTE. The ’90s were absolutely apolitical. All published the thread might be something like: psychology laxation and ambition, and so on. BALANCE ad- magazines had a hard time maintaining a political Thank you for taking the time to speak with us. every two weeks 28 GRUNER + JAHR I ANNUAL REPORT 2003 INNOVATIONS I GRUNER + JAHR 29 KIDS’ ROOM – MELTING POT How the US magazine PARENTS is taking the Spanish-speaking community by storm

FROM TIME TO TIME, JON ANDRADE FEELS LIKE than quarterly. The focus on children is more or less A SURFER on a perfect day. “We are riding the crest the basis for attracting a wide readership. Financial of a huge wave,“ he says, eyes sparkling. He may advice, health tips and the latest trends can all sound as if he is on a California beach, waxing lyri- be found in SER PADRES, well researched and for cal on his latest confrontation with the natural ele- free. Oliva is constantly looking at ways to improve ments, but in fact he is sitting in a Manhattan office the product. The first issue in 2004 featured a new block, talking about work. The head of the adver- section entitled Money Talk, and proved an instant tising department for SER PADRES, the first Spa- success. “We have already received more letters nish-language magazine for parents in the United on this subject than in the whole of last year,“ he States, is reflecting on a quite sensational year. He enthuses.“ That’s the recipe for success: give the can reel off the figures in his sleep. In 2003, adver- people the tools they need to solve their problems tising revenue increased by 51%, advertising pages for themselves.“ launched by 36%. 2004 began in similar style with a 38% in- 1926 crease in advertising revenue for the first issue of Until now, SER PADRES has been made avail- circulation the year. able in doctors’ offices and in 600 branches of Mc- 2,200,000 Donald’s. The Parents Teachers Association takes published This was no overnight success. Gruner + Jahr care of distributing it to its Spanish-speaking mem- monthly was the first to enter this highly promising niche bers. The official circulation figure of 500,000 logged market in 1990 with the Spanish version of PAR- by the Magazine Publishers of America (MPA) puts ENTS magazine. The competition took years to fol- the magazine at the top of the heap of all Spanish- low suit. Editor-in-chief Alberto Oliva and Andrade language publications in the country. And the mar- joined up in 2001 and immediately set about fine ket continues to grow. To keep pace, Andrade has tuning the product to the readership’s needs.“In the installed another sales representative in Miami – the beginning, we only had around 25% original mate- region with the third-largest Hispanic community rial, the rest consisted of articles translated from the in the United States. The surfer’s dream wave is not existing US magazine,“ explains Oliva. Now the bal- going to break just yet. ance is more like 50:50 and the plan is to increase the percentage of original Spanish material even further. Did you know ... • People of Hispanic origin constitute the largest minority group in the United States, The Spanish-speaking minority in the United numbering 39 million and amounting to 13% of the entire population States has its roots in Mexico, South America and • The five most important Hispanic markets in terms of population figures are Los the Caribbean. They may indeed inhabit the same Angeles, New York City, Miami, San Francisco and Chicago country as their neighbors of European descent, • Purchasing power of this population group is estimated at 428 billion dollars, with but often live in a completely different world.“One above-average growth rates excellent example of this is car seats for children,“ • The average age of the Hispanic population is 25.9 years, markedly below the points out editor-in-chief Oliva, going on to explain overall (35.3) his strategy. “No American mother needs con- • Average income of Hispanic households is $ 34.670 per annum, well below the vincing of their value, whereas the Hispanic popu- national average ($ 43,570 ) lation is notoriously dismissive of safety regula- • The number of Hispanic households earning $ 50,000 and more is expected to tions. In cases such as this, we aim to enlighten and rise by 50% by 2005. give advice.“ • According to MPA, SER PADRES heads the Top 10 of US magazines in Spanish. The second and third slots are occupied by PEOPLE EN ESPAÑOL and There are no limits to the topics covered in the READER’S DIGEST SELECCIONES magazine, which now appears bi-monthly rather Universal curiosity: Whatever their language and cultural differences, children often have very similar interests. 30 GRUNER + JAHR I ANNUAL REPORT 2003 INNOVATIONS I GRUNER + JAHR 31

BEAUTY FROM WITHIN How GLAMOUR answered people’s longing for the glitter of the West by imbuing them with a new self-awareness

New type of woman: GLAMOUR photo shoot with the well-known actor and television host Grazyna Torbicka (see cover photo, p. 35) “You can do what you want.“ GLAMOUR’s Editor-in-Chief Grazyna Olbrych has her own personal view on Polish women 32 GRUNER + JAHR I ANNUAL REPORT 2003 INNOVATIONS I GRUNER + JAHR 33

In search of personal expression: The Fabryka Trzciny club is one of the favorite haunts of GLAMOUR’s editor-in-chief Grazyna Olbrych

Being creative is more important than having lots of money: GLAMOUR’s head of fashion, Adam Gutowski, uses luxury brands to fire his imagination 34 GRUNER + JAHR I ANNUAL REPORT 2003 INNOVATIONS I GRUNER + JAHR 35

The market for vanity I NEVER THOUGHT OF MYSELF AS ATTRACTIVE lishing. Several million euros were spent on print, is growing in Poland: or out of the ordinary.Thanks to GLAMOUR I’ve radio and TV advertising. And to front the cam- Oliver Voigt, CEO come to realize that every woman has earned paign, GLAMOUR won the services of famous of G+J Poland with a the luxury of believing in her own beauty.” Political actress Joanna Brodzik, today’s modern, self-as- work of art by a de- science student Angnieszka, Anna for short, a 24- sured Polish woman personified. voted GLAMOUR fan year-old from Warsaw, writes how GLAMOUR helped her discover “a new angle on my own fem- The leading trade magazine Media & Market- ininity.“ Eva, a businesswoman, feels GLAMOUR ing Polska voted GLAMOUR “Newcomer of the is important to her for “demystifying relationships Year 2003,” stating that “the publishers of GLAM- and their secrets“ and helping her to avoid certain OUR have done more than introduce a new mag- partnership pitfalls. azine, they have given Polish women a new lease on life.“ Advertisers were equally enamoured, with launched Polish women’s image of themselves has un- renowned brands such as Versace, Estée Lauder, 2003 dergone constant change since the fall of the Iron Helena Rubinstein, Hennes + Mauritz, Nokia, Sony circulation Curtain. This is due in no small measure to mag- and various car manufacturers all among the 460 276,540 azines such as GLAMOUR, launched by Gruner + pages of advertisements sold over the first nine published Jahr in Poland in the early 2003. Nevertheless, while months. “A few years ago,“ Voigt points out, “suc- monthly Poland is close to the top of the European table in cess of this nature would not have been possible. terms of the number of women in senior manage- The local market for high-end consumer goods did ment positions (over 30%), the image of the “Pol- not yet exist.“ ish mother“ remains a particularly resonant one in society, says GLAMOUR’s editor-in-chief Grazyna Adam Gutowski, head of fashion at GLAMOUR, Olbrych. Always giving, putting family and society elaborates: “At GLAMOUR we made it our business first, sacrificing one’s own interests. “We, on the to rid our readers of their fear of major brands. other hand, tell women: Hey, you can do what you Other magazines portray luxury brands as unattain- want. You don’t always have to give, you are entitled able. We prefer to show them as inspirational.“ to take as well.“ The fashion expert rarely makes use of interna- tional photo material, preferring to shoot locally, Young Polish women appear to identify with underscoring the fact that the products on display this message and the mix of fashion, lifestyle and are available – and affordable – in Poland. Gutowski tips on how to live your life. Average sales of again: “Polish women’s creativity has always en- 276,540 copies throughout 2003 saw GLAMOUR abled them to present themselves in the best pos- race to the number two position amongst quality sible way, even with little money.“ magazines for women. “Poland is one of the most developed markets in Eastern Europe and wo- Polish women’s newfound confidence and men are one of the most highly contested target image is of interest not only to the female popula- groups,“ says Oliver Voigt, managing director of tion. “20 percent of our readers are male“ stresses G+J Poland. Fifteen monthly titles alone compete Olbrych. This gave the editor-in-chief the idea of a for female readers’ attention. That’s why GLAM- supplement that would appear for the first time in OUR was launched with one of the most lavish early 2004 and be dedicated to fashion and good marketing campaigns in the history of Polish pub- looks – for men. 36 GRUNER + JAHR I ANNUAL REPORT 2003 INNOVATIONS I GRUNER + JAHR 37

Loves shopping: Sophia Deslances, Fashion Service

Prêt-à-porter: Expert advice can be invaluable for spotting a good buy WHAT LOOKS LIKE A RELAY RACE is in full swing at the editorial office of SHOPPING magazine in the Rue La Condamine in Paris. One messenger brings shoes, the next picks up clothes, and a collection of handbags needs delivering faster than you can say “photo studio.“ Clothing racks in the third floor show- room are crammed, and blouses, skirts, jackets, coats, tops and trousers are laid out across the gray carpet. Color, form and style are constantly re- arranged until they match just perfectly.

Presiding over this controlled chaos is Francoise Lambert, the fashion editor of France’s biggest wo- men’s weekly magazine FEMME ACTUELLE for over 17 years and, since May 2003, also in charge of fashion at Europe’s first shopping magazine, aptly named SHOPPING. “We aim to offer advice on what to buy just like a good friend, especially a very professional friend,“ Lambert stresses.

The extensive range presented by the 12-person SHOPPING editorial team every two months is beyond anything even the very best friend could cover. Roughly 130 pages worth of the finest products and latest trends in fashion, jewelry, cosmetics, design and interiors are divided into I SHOP, THEREFORE I AM six sections. “We take care to present products in all available price categories and combine ex- How SHOPPING, a brand-new magazine format, was born in France and has pensive with less expensive items in our outfits. The concept of shopping while seated comfort- This is exactly what most women do in their daily ably on the couch has proven a hit with the French. now moved on to great things in other markets, too. lives, too,“ the fashion expert explains. The first edition, initially conceived as a supplement to FEMME ACTUELLE and developed at the record Each product featured – and there are between speed of just two months by that magazine’s edi- 1,000 and 1,500 products per issue – is accom- torial staff, sold over 190,000 copies at a cover price panied by a description, photograph, review and a of € 2.50. SHOPPING established itself not just as rating. There are also consumer tips and source a new magazine in its own right, but also as a com- directories. “We cannot afford to give our readers pletely new genre on the European scene. Until then, poor advice. Our editorial team has complete control magazines dedicated exclusively to shopping were over what goes into the magazine,“says Lambert. only found in the United States. launched Photographs of the editorial team members ap- 2003 pear on the corresponding pages to enhance the The success of SHOPPING has left Francoise circulation sense of personal advice. Readers are encouraged Lambert with something of a problem. She now has 189,400 to send in queries, suggestions or complaints to less time to go shopping herself. “That’s a pity be- published the feature editors in question. cause I love to shop,“ she says, with a rueful smile. six times a year 38 GRUNER + JAHR I ANNUAL REPORT 2003

“INDEPENDENCE IS THE KEY TOOUR SUCCESS” How Gruner + Jahr stuck to its journalistic principles during adverse times. An interview with Angelika Jahr-Stilcken.

What is good journalism for you? makes a virtue of boredom. And certainly no inflam- matory journalism. You know the kind I mean. It would really be poor journalism if I attempted to give an adequate and accurate appraisal of good Which brings us back to the first question: journalism in so small a space. Although there is a Good journalism at Gruner + Jahr, what are its definite trend towards bullet-point summaries of characteristics? anything and everything these days, I don’t belong to the school of thought which believes that the In G+J magazines you can expect to find the highest “Gruner + world can be explained or understood in three sen- standards of reporting, words and pictures that tell tences. I am sure there is a lot of bad journalism in a story. Peter-Matthias Gaede, editor-in-chief at GEO, Jahr is not Germany, but you would be hard-pressed to find any said features are the lifeblood of journalism. GEO is, necessarily at Gruner + Jahr. in my book, the best photographic and features magazine in the world; its reports tell a living story, perfect, but What do you mean by that? How is Gruner + Jahr cast a new light on the real world. we do not different from other publishing houses? So a good journalist blends truth and poetry? indulge in Gruner + Jahr is not necessarily perfect, but we do any jour- not indulge in any journalism for favors. There isn’t No, as famous 1920s reporter Egon Erwin Kisch put a company in the world that can walk in and buy the it, one cannot allow one’s imagination to run riot in nalism for front cover of a G + J magazine and fill it with adver- an article. There is a fine line between fact and let- favors.” tising. The publishers encourage a certain degree ting facts dance their own dance - a nice image. of creativity when it comes to advertising design, but the line we draw is absolutely clear. Advertising At Gruner + Jahr you are an editor-in-chief as well and editorial content must be kept well apart. as being a publisher, head of a publishing company and a journalist member of the board of directors. Are there any other noticeable differences? Isn’t there a certain conflict of interests between the journalistic leanings of the editor-in-chief and Oh yes, you won’t find any trivial, yellow press style the business interests of the publishing company journalism here. Nor any fossilized journalism, which boss, or even of the board of directors? Angelika Jahr-Stilcken, Member of the Executive Board, Journalism 40 GRUNER + JAHR I ANNUAL REPORT 2003 JOURNALISTIC INDEPENDENCE I GRUNER + JAHR 41

I don’t see that as a problem. I come from a family Well, of course that would be a valid argument if we doctor only a doctor. A journalist is there for his You have raised the bar rather high for special-in- of publishers. My father, who founded Gruner + Jahr were talking about bolts of cloths, but we in the pub- readers, listeners or viewers – and now for online terest magazines … almost forty years ago with Gerd Bucerius and lishing business are aware of the importance of ac- users as well – to report facts and fill in the back- Richard Gruner, was a publisher with all his heart curate research and well-crafted writing. We under- ground. The task is to relate and explain the facts Yes, the art of journalism in such magazines is to be and soul. It is quite normal for a publisher to keep stand that the space we afford our journalists leads in an interesting way, without being didactic. Noth- able to research and write about diapers and chicken- an eye on the journalistic content of his magazines to higher quality. The production of information can- ing more and nothing less. Henri Nannen, the foun- pox or curtains and garden furniture with the same as well as on the business interests of the publish- not be rationalized in the way the production of indus- “If a publi- der, publisher and editor-in-chief of STERN, a man zest and verve as other colleagues do about earth- “The art of ing company. Good journalism is the soul of a pub- trial goods can be. I am convinced that, at the end cation is to be who had a great influence on me as a journalist, quakes and presidential coups. journalism is lishing house. But good journalism can only thrive of the day, it will be an expensive exercise to fill the credible, its thought the same way. It was he who said “I would to be able in the financially healthy environment of a strong space between the maximum number of advertise- rather preach a full church than an empty cathedral.” Is that the case in your own publishing field? publishing company. ments at the lowest possible cost. Our principal task readers have In other words: it is important for a magazine to to write about is to disseminate information and uphold credibility. to be ab- reach as many readers as possible. He did not pro- I would like to think so. It’s about finding that certain diapers and Is that enough in itself? duce STERN for the publishers, nor for the adver- something which adds to the reader’s pleasure. So the editors need freedom – both journalistic and solutely sure tising customers, and certainly not for himself. His “Don’t be jealous, zebra, stripes are in” was a head- chickenpox Another thing I learned from my father, when I was financial? sole interest was his readers. line in LIVING AT HOME which appealed to me much younger, was the great value of indepen- that what because it sold its story effortlessly. Or this intro- with the dence. Looking at it in terms of the conditions and Yes, I can’t stress the importance of independence they are read- What fascinated you most about Henri Nannen? ductory line from the food and drink magazine same zest chances of success in journalism, my father, John enough. Many publishers around the world feel the ESSEN&TRINKEN: “She is extraordinarily pretty, Jahr, was a passionate journalist and at the same financial pressure from advertising customers so ing is un- Henri Nannen’s journalistic mind was matched by extraordinarily gifted, and when we met for our and verve as time a publisher with good instincts. Both prior to strongly that it eats away at editorial freedom. If a filtered infor- a wonderful gut instinct. He was also, as a journal- interview, she was also extraordinarily pregnant.” other col- and following the merger in 1965 which resulted in publication is to remain credible, then its readers mation.” ist, a total perfectionist. He would study the proofs leagues write the Gruner + Jahr printing and publishing house, it have to be absolutely sure that what they are read- down to the last detail, often driving his editorial The question of good journalism still remains: was his style to give his chief editors free rein. The ing is unfiltered information.That is what Gruner + teams to distraction, but, at the same time, taking can quality print journalism prosper or will it be about earth- principle of editorial freedom and independence Jahr stands for, and so do our editorial desks. them to a whole new level of journalism. crushed between the grindstones of television quakes and has remained one of the key elements at Gruner + and Internet? Jahr to this day. How should journalists deal with the world’s What do you see as the pinnacle of journalism, one presidential power players, in your opinion? generation on from Henri Nannen? No, I am sure that won’t happen. Well-made news- coups.” What do you see as the difference between a pub- papers and magazines will not only survive, their lishing company producing magazines and news- Most importantly, maintain a critical distance. The I think it is this: healthy curiosity, independence, hon- relevance and role in society will become greater. papers, and a factory producing nuts and bolts or great German journalist Kurt Tucholsky wrote: “You esty, thoroughness in passing on information to cleaning cloths? don’t need to bribe a German journalist, it’s enough the reader – providing a path through an increasingly You are not worried at all about the fate of good for him to be treated as a powerful force.” These confusing world, without forgetting the emotional journalism? One cannot order journalists to be more productive days I see too many journalists on first name terms potential of words and pictures. Order, analysis and or more creative. It isn’t about the quantity of arti- with people of influence, or at least trying to be. background are more vital today than ever. Good “Good journalism needs a home, a place to live.” cles they deliver. It’s about quality, truthfulness and, Perhaps it is only human, but such aspirations are journalism is not restricted to the biggest, hottest This is one of Gruner + Jahr’s mission statements. above all, will it interest the reader? Does it match a misapprehension. One cannot do justice to the stories or major features, I should add. Whether one A home for something Gruner + Jahr has always be- his expectations? An editorial desk doesn’t operate cause of journalism thinking like that. is writing for stock investors, gardeners or pregnant lieved in and will continue to believe in: freedom of on the piecework principle. It can happen that a tal- women, writing on subjects such as home improve- expression, honesty and journalistic independence. ented writer spends days working on one article, That sounds very puritanical. ments or culinary delights, the same journalistic This is the foundation of our economic success. only to find that it doesn’t meet his or her own stan- values apply: thorough research, credibility, and dards. So he rips it up and starts again! … and that’s exactly what I mean. A journalist, in my writing in such a way that readers both understand book, is “merely” a journalist and nothing more. and enjoy what they read. “The ethics of journalism Not very efficient from an economic point of view. In the same way that a judge is just a judge and a are based on service,” Johannes Gross once said. Thank you for taking the time to speak with us. 42 GRUNER + JAHR I ANNUAL REPORT 2003 CORPORATE DIVISION MAGAZINES GERMANY I GRUNER + JAHR 43

MAGAZINE DIVISION GERMANY Innovation based on strong brands. A bold, creative approach to consolidate Gruner + Jahr’s special position on the German magazine market

IN 2003, THE MAGAZINE DIVISION GERMANY Dr. Bernd Buchholz sue enabled us to increase the guaranteed print-run After a three-year downward slide, there are COUNTERED THE THIRD CONSECUTIVE SLOW President, figure to 300,000. The Allensbach Advertising Me- now indications that magazine and advertising YEAR IN THE GERMAN CIRCULATION AND AD Magazine Division dium Analysis (AWA) reports that WOMAN gives ex- space sales in Germany will show a slight recovery SALES MARKET with a spate of new titles: NEON, Germany cellent service to its target group of “young, well- in 2004. Gruner + Jahr is planning to continue the in- STERN SPEZIAL GESUND LEBEN, BRIGITTE since January 1, 2004 educated, professional women.” The only bitter pill novation offensive launched in all its publishing di- COOKIE, ESSEN + TRINKEN FÜR JEDEN TAG, NG in the women’s magazine segment is MARIE CLAI- visions in 2002 with further new quality titles. It will WORLD. Gruner + Jahr, the biggest magazine pub- RE, the last issue of which appeared in October also seek to gain market share in its core business. lisher in Germany, is relying on the pull exerted by its 2003 after intensive efforts failed to bring about an established magazine brands and the ability of its increase in sales of advertising space. highly professional editorial staffs to develop and launch innovative concepts. This strategy has been ESSEN + TRINKEN, G+J’s classic title in the liv- rewarded with higher circulation figures and suc- ing and lifestyle segment, has also produced off- cessful defense of the company’s undisputed lead- spring: ESSEN + TRINKEN FÜR JEDEN TAG, which ership in a market where circulation and orders for made its first appearance in July 2003. This handy, advertising space are either stagnating or showing a pocket-sized booklet now appears ten times annu- slight downward trend. This, together with increases ally with simple, quickly prepared recipes of typically in operating efficiency at all levels, has yielded a sig- high ESSEN + TRINKEN quality. It was very well re- nificant year-on-year improvement in earnings. ceived, with the first issue running to 150,000 copies.

The launch of the STERN offshoot NEON caused G+J also succeeded in strengthening its supre- a major stir in the German media landscape. The slo- macy in the German market for popular science gan for the launch of this title aimed at the 20 to with market coverage of 11.2 percent and some 1.2 magazines. GEO remains the undisputed market 29-year-old age group was “It’s time we grew up.” million readers. leader, with AWA First Class 2003 reporting a cov- Rolf Wickmann headed the Magazine Division Upon its appearance in the kiosks on June 23, erage increase from 16.7 to 17.2 percent in the high- Germany for 20 years until December 31, NEON sold over 90,000 copies. The response from G+J’s second-largest flagship title, BRIGITTE, er target groups. GEOLINO’s circulation showed 2003. It is thanks to his experience and input both readers and advertisers has been very positi- was also able to consolidate its position with a com- a year-on-year increase of 14 percent. NATIONAL that G+J’s German magazine portfolio was ve and NEON is now published monthly. bination of a stable trend in figures for the main title, GEOGRAPHIC made further progress on the expan- steadily expanded during the 1980s and 1990s. plus enlargement of the brand family. 80,000 women sion of its brand family initiated in 2002, launching As of January 1, 2004, Rolf Wickmann holds STERN SPEZIAL GESUND LEBEN is a classic bought BRIGITTE KULTUR when it was launched a special issue called TRAVELLER that was followed the position of President responsible for German example of how socially relevant topics can be suc- in spring of 2003. This was followed in November in November by NG WORLD, a bilingual magazine associated companies and strategic projects at cessfully exploited in magazine form. Following a by BRIGITTE COOKIE, a quarterly, pocket-sized for children and teens launched in conjunction with Gruner + Jahr AG & Co KG. In addition to assist- healthcare series running through several succes- publication containing recipes, tips and tricks de- a TV program on the children’s channel and an inter- Rolf Wickmann ing the Executive Board on important matters sive issues of STERN, a special healthcare issue signed to take the stress out of cooking. BRIGITTE active website. 80,000 copies of this magazine, plus President, relating to key issues, Rolf Wickmann will con- sold 130,000 copies and is now being published WOMAN is also doing well. This magazine, aimed at 15,000 subscriptions, were sold within a few weeks. Magazine Division tinue to chair the Advisory Board of the Henri bimonthly in 2004, thereby opening up a totally new women over 40, broke through the 300,000-copy Germany until Nannen School of Journalism, and to represent market segment, healthcare. STERN magazine’s barrier for the first time in 2003. Following its re- The celebrity magazine GALA continues to forge December 31, 2003 G+J on the Advisory Board and at the Sharehol- total sales and advertising revenues not only kept launch in the fall of 2003, BRIGITTE YOUNG MISS ahead. Sales of this premium title broke through the ders’ Meeting of Vereinigte Motor Verlage GmbH it at the top of the German magazine market. Sur- achieved circulation increases. Since its launch in 400,000-copy barrier for the first time in the third in Stuttgart and, together with the Chairman of veys also confirm its top reader rating, with circula- October 2001, WOMAN has established itself in the quarter of 2003. Space sales were also buoyant with the Gruner + Jahr Executive Board, at the Share- tion up by 3.5 percent. One in every nine Germans German mag-azine market as a force to be reckoned a year-on-year increase of 14.7 percent in 2003. holders’ Meeting of Spiegel Verlag. reads STERN, and it’s well ahead of the competition, with. Steady sales averaging around 330,000 per is- 44 GRUNER + JAHR I ANNUAL REPORT 2003 CORPORATE DIVISION FINANCIAL PRESS/NEWSPAPERS I GRUNER + JAHR 45

NEWSPAPER DIVISION/ BUSINESS PRESS GERMANY Consistent brand management to strengthen business publications – FTD continues on its successful course

INITIATED IN 2002, Gruner + Jahr’s strategy of fo- Achim Twardy dards. According to AC Nielsen, its gross advertising and certificates. The award of the 2003 German prize cusing on its magazine business was continued in President, revenues rose by 20 percent. The response from for the protection of investors in recognition of its 2003 with the sale of the Group’s interests in east- Newspaper Division/ readers and advertisers to the luxury supplement “practice of critical journalism” is proof that this title ern European newspapers (published in the Czech Business Press HOW TO SPEND IT was also extremely satisfac- refuses to abandon its clear commitment to quality and Slovak Republics, Romania and Serbia) and the Germany tory. The supplement will be published six times journalism even when times are tough. pooling of all its business publications in Germany annually as from 2004. into a single division. The Newspaper Division/Busi- The SÄCHSISCHE ZEITUNG once again main- ness Press Germany thus enlarged in October 2003 Although the business magazines CAPITAL tained its position as one of Germany’s leading includes the FINANCIAL TIMES DEUTSCHLAND and IMPULSE were both able to defend their lead- regional newspapers and operated at a high rate and the SÄCHSISCHE ZEITUNG, and is responsible ing market position in their respective segments, of profitability. The SZ broke new ground in the for all business magazines in Germany and for coord- their advertising space sales continued to suffer regional newspaper segment by launching a sep- inating all G+J business titles at global level. The aim from the weak economic situation. With 216,169 arate Sunday issue in fall of 2003. The share con- of this regrouping into a single division was to sold copies (IVW IV/03) and slight increases in tributed to the overall results by new business fields strengthen the business publications and create coverage to 2.1 percent (MA 2003/II) and to 12.2 also steadily increased. Repair of damage to its new growth potential. percent (LAE), CAPITAL retained its position as premises in Dresden from the disastrous floods in the most widely read, classic business magazine the summer of 2002 was completed at considerable While the FTD was able to buck the general with the highest circulation in Germany. Following expense. market trend and succeeded in adding both circu- redesign and restructuring in September 2003, it lation and space sales in 2003, the business mag- now has a new look and a broader spectrum of With signs indicating that the downturn in the azines CAPITAL, IMPULSE and BÖRSE ONLINE topics. business media segment was bottoming out to- suffered more heavily than any other magazine seg- ward the end of 2003, Gruner + Jahr is now ex- ment from the weak economic situation, especially a very positive effect on reach which, according to In a drive to increase readership, IMPULSE, Ger- pecting a turnaround in 2004. This will, however, in sales of advertising space. The plight of the finan- AWA, showed a disproportionately high increase of many’s leading magazine for entrepreneurs and me- very much depend on a positive trend in the over- cial press side was compensated to a certain extent 23 percent, bringing the total number of readers to dium-sized companies, was also visually revamped all economy. An upswing in business activity, par- by the highly satisfactory progress achieved by 265,000. According to LAE, readership in the im- at the end of the year and had its content expanded, ticularly in the financial markets, would create ad- the SÄCHSISCHE ZEITUNG. The Group also realized portant decision-maker target group showed an especially on topics of interest to young entrepre- vertising potential from which the G+J titles would substantial assets from the sale of its activities in even steeper rise of 44 percent to 92,000 in 2003. neurs and others founding new businesses. A sup- derive above-average benefits due to their leading central and eastern Europe . plement entitled “Gründerzeit” (roughly “Industri- market position. Consequently, the company is ex- The FTD has succeeded in establishing itself al Expansion”), which appeared in the FTD and as pecting to see a marked improvement in earnings In the fourth year following its launch, the FTD as one of the leading opinion-shaping media in part of IMPULSE, became the magazine with the from its business publications in 2004. Increased continued to achieve growth in circulation, coverage Germany. This is also emphasized in a survey highest coverage for this segment in Germany. cooperation and exchange of experience between and advertising space sales, thereby gaining market conducted by Medien Tenor, which revealed that all the Group’s national and international business shares. Circulation in the fourth quarter of 2003 the FTD was the most frequently quoted business BÖRSE ONLINE has also responded to changes titles will be key elements in the growth offensive. was up by 4.7 percent year-on-year at 93,527 sold medium in 2003. Numerous awards for good jour- in investors’ needs for information. Its detailed ana- The FTD will achieve stable growth and gain great- copies. Subscriptions rose 6.3 percent to around nalism, design and marketing, plus growing ad- lyses of companies and shares were supplemented er market shares. The newspapers in Saxony will 57,000, underscoring the FTD’s high reader accept- vertiser interest, are further confirmation that the in the summer of 2003 by reports on alternative improve their market position, both journalistically ance and loyalty rates. The increase in circulation had FTD is meeting the high self-imposed quality stan- forms of investment such as bonds, funds, options and financially. 46 GRUNER + JAHR I ANNUAL REPORT 2003 CORPORATE DIVISION INTERNATIONAL MAGAZINES I GRUNER + JAHR 47

MAGAZINE DIVISION INTERNATIONAL Well-established titles and successful concepts form the basis for global organic growth in the world’s most international publishing house

THE MAGAZINE DIVISION INTERNATIONAL Axel Ganz from ads and sales showed a significant rise from ties. While the core markets of France and United LAID THE FOUNDATIONS FOR FUTURE GLOBAL President, 11.8 to12.9 percent despite very keen competition. States remain under the control of President Axel GROWTH with the launch of a large number of mag- Magazine Division Ganz, the Group’s growth markets China, Italy, the azine titles and special issues in 2003: FITNESS France and USA In Russia, the Group’s leading position in the Netherlands, Poland, Russia, Spain and Austria have (China), GEOLENOK/GEOFOCUS (Russia), FOCUS popular science magazine segment was further been regrouped in a new division under Torsten- JUNIOR (Italy), GLAMOUR (Poland), SHOPPING/ strengthened by the launch of GEOLENOK, an edu- Jörn Klein. Forecasts for 2004 in all countries in TELE 2 SEMAINES (France). Although revenues took cational magazine for children and teens, and GEO- which the Group does business are cautiously opti- a dip – mainly because of the discontinuance of FOCUS, a popular science title. The Group can re- mistic. Regardless of this, Gruner + Jahr is investing ROSIE in the USA and the weak dollar – the division port continuing growth in China, where it opened up large sums of money to achieve significant growth. made an above-average contribution to the Group’s a new segment with the launch of FITNESS and en- The transfer of well-known magazine titles and suc- overall earnings with a two-digit return on sales. joys steadily rising revenues. The Chinese edition cessful design concepts to a number of other coun- of INC. was discontinued at the end of the year be- tries remains a key feature of its growth strategy. The driving force behind the expansion of the cause of unsatisfactory circulation and financial pro- international portfolio in 2003 was France, the sec- spects. ond-largest market for Gruner + Jahr after Ger- many. During the course of the year, Prisma Presse G+J Spain celebrated its 25th anniversary with brought out 41 special issues in connection with sales well above forecasts and various line exten- titles such as FEMME ACTUELLE, PRIMA, VSD, sions of existing titles. It also launched a Portuguese CAPTIAL, CA M´INTERESSE, GALA and CUISINE edition of the parents’ magazine SER PADRES, ACTUELLE. With the new publication, SHOPPING, which has been on the Spanish market since 1978, launched in May, it established a new magazine in a cooperation arrangement with Motorpresse in concept in Europe which was exported during the G+J’s big US titles like FITNESS, PARENTS and Lisbon. In Italy, G+J-Mondadori published several On January 1, 2004 Torsten-Jörn Klein took over subsequent months to other European companies CHILD maintained or slightly strengthened their mar- special issues and meticulously planned the launch responsibility for all G+J’s international mag- within the Group, with WOMAN SHOPPING in ket positions despite keen competition. CHILD was of FOCUS JUNIOR, a magazine for children and azine business with the exception of France and Germany and also MARIE CLAIRE SHOPPING once again able to report above-average growth of teens, scheduled for early 2004. the United States. His territory at present in- and MIA SHOPPING in Spain. France’s first ever bi- 29 percent in ad pages. The economic revival failed cludes the Group’s subsidiary operations in South- weekly TV program magazine was launched with to have any significant effect on the US magazine Gruner + Jahr’ s Dutch subsidiary also looks ern and Eastern Europe, the Netherlands, Aus- the assistance of a novel program database. Follow- market, which continues to suffer from heavy price back on a successful year 2003. Its team succeed- tria and Asia. The decision to put responsibility for ing extremely positive consumer reaction during pressure and falling circulation. ed in bringing the operation out of the red in only these regions in the hands of a single President Dr. Torsten-Jörn Klein test marketing in November, TÉLÉ 2 SEMAINES three years. underscores the importance attached to growth President, was launched nationally in January 2004 and sold Gruner + Jahr had a very satisfactory year in Po- markets in G+J’s future business development Magazine Division over one million copies from the very start. The ris- land, Europe’s strongest growth market. The launch In January 2004, the Group’s international busi- plans. Responsibility for France and the United International ing trend in sales of the subsequent issues makes of GLAMOUR early in 2003 further enhanced its ness was split into two separate divisions, each re- States at Executive Board level will remain in as of January 1, 2004 this title one of the most successful magazine leading market position in the women’s segment, porting to its own President. This underscores the the hands of Axel Ganz. launches in many years. and overall market share expressed as revenues importance G+J attaches to its international activi- 48 GRUNER + JAHR I ANNUAL REPORT 2003 PRINT DIVISION I CENTRAL CORPORATE DEVELOPMENT I GRUNER + JAHR 49

CORPORATE DEVELOPMENT PRINT DIVISION Is there a formula for growth in mature markets? Operational efficiency and cost management combat stronger competitive pressures plus new contracts in the United States. DURING THE COURSE OF 2003, most advertising Martin Stahel markets reported a slightly positive trend – but not so Member of the Germany, however. As a result, Corporate Develop- Executive Board, ALTHOUGH THE EUROPEAN PRINTING SECTOR Volker Petersen ment has brought forward its intensified analyses Corporate Development once again faced strong competitive and price pres- Managing Director, and programs with regard to future profit growth in sure during 2003, the first signs of a market Print Division existing markets, as well as penetration and devel- recovery started to appear during the fourth quar- opment of new markets and new business. ter. New orders acquired by G+J’s German printing plants at Itzehoe and Dresden more or less compen- In 2003, Corporate Development (CD) worked sated for the volume shrinkage, which had been closely with the operating companies to rethink caused by the slump in advertising and slimmer and restructure Gruner + Jahr’s innovation process. magazines. Both facilities continued to run at the Acting as an umbrella forum for coordination as same level of capacity as last year. Gruner + Jahr well as an ideas foundry, CD managed the new succeeded in defending its no. 2 position in the roto- WIN (World Class Innovation) Program, which was gravure sector, implementing a radical cost man- founded in 2003. The first, impressive results we- agement program to cushion the effects of per- re not long in coming. The successful introduction sistently high price pressure. The Itzehoe plant of a number of new titles in most markets proved launched an efficiency drive designed to keep it that growth is still possible in a saturated market. competitive in the long term. Nevertheless, there are indications that the The Print Division reports good results, especially greater potential for growth in turnover and results from the United States, where the upward trend al- lies in new market segments in Gruner + Jahr core ready evident in 2002 was consolidated during the territories and in new geographic markets. CD spent CD pursued a number of interesting acquistion year under review. The Brown Printing Company’s the past year working on market risk and opportu- projects in 2003. We will quite possibly see initial acquisition of the contracts to print the three well- The Print Division is expecting the year 2004 to nity analyses for the operative companies. These growth results for Gruner + Jahr arising from this in known US magazines Time, People and Sports Illus- bring slight volume increases as the market for studies not only took into account the level of com- 2004. trated for Time Inc. has further strengthened its pos- printed products gradually recovers. As the US mar- petition and specific market potential, but also the ition as the fourth-largest magazine printer in the ket is generally in better shape, the recovery there social, political and overall economic developments Consolidation of costs and optimizing process- world’s largest magazine market. A new rotary press will probably be more pronounced than in Europe. in the territory. es, the so-called CAP Program, is something CD has now on stream at the East Greenville (PA) plant has The beneficial effects of upward market trends dur- been involved in since the beginning of 2001. We increased capacity by 20 percent. The Woodstock ing the current year are once again being augmen- The threat to “conventional” print media posed continued our solid work in this area alongside the (IL) plant has slashed unit costs even further with ted by cost-management and efficiency programs. by technological developments, particularly in the newer projects, but CAP grew into such an accept- four new high-performance gang stitchers. The US In Europe, Gruner + Jahr is planning to strengthen electronic field (e.g. e-paper, online advertising etc.) ed and active “brand” throughout the whole com- printing operations maintained their return on sales its leading position in the rotogravure sector by in- – as well as the inherent opportunities – also fea- pany that it is now no longer necessary for CD to and contribution to earnings at last year’s level. tensifying cooperation with other market sectors. tured strongly in our work over the past year. play such a large controlling and managing role. 50 GRUNER + JAHR I ANNUAL REPORT 2003 CENTRAL SERVICES I GRUNER + JAHR 51

CENTRAL SERVICES Creation, implementation and marketing of know-how – an internal division as well as an external services provider

OUR AIM IS TO OPTIMIZE WORK PROCESSES, de- Dr. Martin Schuster In addition to its old-established Management velop shared services, standardize systems and Member of the College and other career development activities, identify and make use of potential synergies and Executive Board, Human Resources has set up a special develop- opportunities for increasing operating efficiency. Central Services ment program for upcoming young talent. An Intra- The Central Services Division further enlarged its net-based self-service portal introduced in 2003 portfolio of services in 2003 – in the fields of Human now enables a large portion of G+J staff to retrieve Resources, Accounting, Corporate Finance, Informa- data such as bank account details, addresses, vaca- tion Technology, Internal Administration, Paper Pro- tion dates etc. and make amendments to these AN ATTRACTIVE curement and Legal Services. Closer attention was themselves. Sport facilities available to G+J staff paid to identifying opportunities for marketing ac- have been enlarged to include golf, women’s row- quired know-how externally instead of confining its ing, “back power” and yoga. EMPLOYER application to the Group’s own operations. The Gruner + Jahr is the leading journalistic player in a highly Business Service Company BSC formed for this pur- Corporate Finance made further progress on competitive market. It produces top quality and markets pose (and working a full 40-hour week) has mean- the integration of internal and external reporting premium brand names.This makes G+J the top name in the while acquired a number of external customers who procedures, and the production of reports has now publishing and media sector for people seeking to make a now use internal Group services in areas such as IT, been more or less completely automated. Incoming career in that field. The fact that it is an attractive employer facility management and human resources. invoices are registered automatically by a new multi- makes it essential for G+J to give high priority to the qual- font reading software. An internal accounting aca- ity of its activities in the areas of recruitment, basic and fur- Activities during 2003 focused on information demy offering two parallel, two-semester training ther training and career development (e.g. the Henri Nannen technology. The responsibilities of the Chief Infor- courses for accounting staff has been formed. School of Journalism, apprentices, trainees, cooperation mation Officer (CIO) were upgraded to global level with Nordakademie, appraisal interviews, preliminary train- with a brief to develop a new worldwide Group IT IT and Internal Administration gave an impres- Central Services Division will continue to expand ing periods for school-leavers) in accordance with its creed strategy with interfaces to all countries and spe- sive demonstration of their efficiency when they its portfolio of services for the company and its ‘People and Brands.’ cialist divisions. An inventory of all G+J’s interna- successfully installed a new telephone system with employees during 2004. Projects now in preparation Because the Group attaches such great importance to its tional IT activities was one of the first steps toward some 3,000 telephones in a single weekend. A cus- include systems for electronic and mobile order international activities, its objective is to ensure that this the creation of a reliable and efficient international tomer survey led to the signing of a contract with a processing and modernization of computer work creed is practiced both in Germany and in its other markets IT infrastructure. Further standardization of systems new PC support provider. Other IT projects included stations. in Europe and overseas. was achieved with the installation and startup of the outsourcing of PC support to an external ser- SAP business software in Italy and initiation of an vice company. Internal Administration created an on- Corporate Finance will make a significant con- For more informations about Gruner + Jahr’s activities in this SAP project in Spain. The Group’s central IT function line travel portal capable of handling reservations tribution toward the improvement of corporate con- area, visit www.guj.de already provides over 1,100 SAP users with services, and other business travel formalities for company trol with the introduction of a new system for pre- works for seven foreign subsidiaries and manages employees, including the electronic processing of all paring the consolidated annual financial statements data on 3.5 million subscribers. approval and other processes. and optimizing reporting procedures. 52 GRUNER + JAHR I ANNUAL REPORT 2003 ENVIRONMENT I GRUNER + JAHR 53

The Living Elbe Natural and cultural treasures in Europe’s heartland 54 GRUNER + JAHR I ANNUAL REPORT 2003 ENVIRONMENT I GRUNER + JAHR 55

THE ANGLERS OF THE SAXONY STATE AGRICUL- Many of the worst industrial polluters, like the Bit- ing at a height of 1,384 meters in the granite moun- 22,000 free-standing oak trees. This is the only place TURAL INSTITUTION landed a big one back in Octo- terfeld chemical industry, have been closed down. tains of the Riesengebirge in the Czech Republic at where the beaver, once native to the whole of central ber 2002 – a female salmon 94 centimeters long and Even in the river’s upper reaches in the Czech Re- the confluence of three tiny rivulets issuing from Europe, has survived, and it is the nursery for seve- weighing 6.7 kilograms. Along with 23 others of the public, chemical manufacturers that still pump their surrounding peat bogs, the official source of the ral species recolonization projects in other parts of same species, she was making her way up the Elbe effluent into the river are first treating it in purifica- Labe (as the Czechs call the Elbe) is marked by a Germany. River to the stream where she had once hatched. tion plants. The success rate can be expressed in ring of stones. This is the unspoiled homeland of Here, at the former frontier between Eastern One of this swarm was making the strenuous jour- figures. Heavy metals such as mercury and toxic Commerce and culture: the mythical figure Rübezahl, and was declared a and Western Europe, Nature has been able to re- ney upriver from the Atlantic for the second time. chlorinated hydrocarbons have more or less dis- line the banks of national park in 1963 – seven years before Ger- tain much of its charm and character. Along the That is very unusual because adult salmon normal- appeared, and a wide range of fish and inverte- the Elbe between Ham- many’s first national park in the Bavarian Forest. line where ideological differences separated the ly die after mating and laying their eggs. brate species are once again flourishing in the river. burg’s ultramodern On the Czech-German frontier, the river cuts human population for more than 40 years, the Elbe The salmon is only one of the creatures making The big cleanup has made the river more attract- container port and the through the picturesque Elbsandstein mountain functioned as a natural border and did not degene- a spectacular reappearance in this river, which was ive to the people living on its banks. The First inter- Dresden, the “Florence range. During the course of 100 million years, the rate into the tamed waterway that it often became formerly polluted with heavy metals and other tox- national Elbe Swimmingday organized in July 2002 of the Elbe” river has gradually eaten its way through the 150 elsewhere.

“Gruner + Jahr contributes toward pre- serving, culti- vating and carefully de- veloping the natural and cul- tural treasures of the Elbe, from source to mouth and without re- gard to nation- al borders.” Angelika Jahr-Stilcken, Member of the Executive ic substances. Biologists are now frequently re- by Gruner + Jahr and the German Environmental Aid million-year-old sediments of the Jurassic Sea. Two The disastrous floods along the Elbe and its Board, Gruner + Jahr porting freshwater lampreys, loach and even sea Organization was a huge success. Over 80,000 Swiss painters, who worked there 200 years ago, tributaries in the summer of 2002 once again de- trout in the Elbe tributaries in Saxony and Saxony- friends of the river celebrated the Elbe’s recovery at gave it its present nickname – Bohemian-Saxon monstrated that rivers today need broader flood Anhalt. “There are now 94 species splashing around 55 locations in the Czech Republic and Germany. Switzerland. The painter Caspar-David Friedrich al- plains than was formerly the case. At the bend in the in the Elbe,” rejoices Heinrich Reinecke, the Head More than 5,000 swimmers plunged into the cool so found innumerable motifs in the region’s steep river nicknamed the Evil Place near the small town of the Committee for Prevention of Elbe Pollution. river water. This was an encouraging experience for Fish are biting again: rock faces, limestone ridges and deep canyons. of Lenzen in Brandenburg, thousands of sandbags “That’s more than in the Rhine.” This is an indica- Roberto Epple, one of the event’s main organizers: Salmon and other The “Flusslandschaft Elbe” biosphere reserve on lying on the dike bear silent witness to the tion that the river is once again biologically intact. “If you love something, you protect it.” species are back in the the border between Saxony and Lauenburg in Schles- Herculean efforts of the hundreds of volunteers It’s also something of a miracle since this east- And there is certainly plenty to protect. From its Elbe – thanks to wig-Holstein is a veritable jewel of nature. A’ UNES- who saved the local population from the flood wa- west flowing river has long been regarded as Eu- source in the Czech Republic to its mouth at Cux- intensive efforts to im- CO World Heritage Site, it covers an area seven ters. To prevent it happening again, there are now rope’s biggest sewer. More than 200 sewage treat- haven, the Elbe flows through no less than five prove the quality times as large as Lake Constance and includes fea- plans to rededicate an area of 450 hectares of the ment plants now stand on the banks of the Elbe. national parks and one biosphere reserve. Originat- of the river’s water tures such as Europe’s largest alluvial forest and river’s former flood plain. A new, seven-kilometer 56 GRUNER + JAHR I ANNUAL REPORT 2003 ENVIRONMENT I GRUNER + JAHR 57

overflow dike is being erected farther away from the Europe’s heartland. It was here that significant so- river and the old dike is being breached at six points cial, cultural and architectural changes were born. “ELBE – WORLD HERITAGE STATUS IS A MUST” to allow the annual floodwaters to spread out with- Martin Luther triggered the Reformation when he out causing damage. 400,000 oaks, elms and alders stuck his theses on the doors of Wittenberg’s An interview with Prof. Bernd von Droste zu Hülshoff will be planted on the new flood plain to restore the Castle Church in1517. The Luther Memorial in Wit- alluvial forest that existed here until just 300 years tenberg was officially recognized as the authen- G+J launched the Liv- A wealth of significant natural and world heritage. For example, the Danube, the Rhine and the Loire are ago. “It’s a sort of pilot project,” emphasizes Tim tic scene of the Reformation and a cultural heri- ing Elbe project to- cultural treasures are to be found authorities behind a massive buil- already on the world heritage list. Schwarzenberger, who is in charge of the refore- tage of the human race by UNESCO in 1996 – as is gether with the German along the banks of the Elbe. How ding project planned in Potsdam, What has to be done to get the Elbe station. “It will be an opportunity to demonstrate the Bauhaus in Dessau, erected by Walter Gropius Environmental Aid can they be protected as effectively which would have adversely affec- included? that nature preservation, flood protection and revi- in 1925 and the symbol of the Bauhaus school of Organization in 1987. It as possible? ted the Palace of Sanssouci, relent- The listed regions are invariably val of tourism can get along very well together.” architecture, which introduced revolutionary ideas supports a network International conventions and pro- ed at the last minute in order to sections of a far longer river valley. The people of Dresden know all about the dan- in architecture and urban planning between 1919 of more than 400 active grams already provide protection avoid being put on the World Her- The problem is that areas of scenic gers of flooding. The inhabitants of “Florence on the and 1933. environmental organ- for a number of outstanding natu- itage’s “Red List.” beauty in river valleys normally lie izations along the Elbe ral features as wetlands, biosphere along a long corridor in which a River and has devel- reserves and, in a few exceptional The First international Elbe Swim- whole host of players, especially oped a plan for conser- cases, “world heritage sites.“ This mingday received an enthusiastic municipalities, are involved, and vation of the river kaleidoscope of different terms for welcome from the population. How may also cross state or national from its source to its natural areas requiring preserva- can the people living along the frontiers. The natural reserve sys- mouth. The long-term tion, all with different legal inter- banks of the Elbe be more closely in- tems urgently need to network and aim is to have parts pretations and degrees of protec- volved in the preservation and care integrate their efforts. All of the of the Elbe valley’s uni- tion, highlights the need for an of the Elbe valley? political instances, from local up to que areas of natural integrated nature conservation sys- The First international Elbe Swim- national level, must pull together. scenic beauty included tem for the whole Elbe valley con- mingday certainly confirmed the in UNESCO’s World sisting of nature reserves and in- close bond existing between the What financial impetus can a UNES- Heritage Register. terlocking areas. This would create riverside population and their river, CO commendation bring? a protected area along the whole and also that the strong support for It can upgrade a region consider- length of the Elbe, in which the an unspoiled Elbe River is produc- ably. Many tourist organizations places identified as part of our ing a better quality of life. But public specialize in marketing UNESCO world heritage would stand out like appreciation of the importance of World Heritage regions with spe- glittering pearls in a long chain. maintaining or regenerating eco- cial offers for tourists seeking uni- logical systems in the Elbe’s catch- que travel destinations. The Elbe How will the recognition of certain ment area as a crucial feature of valley could obtain synergistic be- areas by the UNESCO World Heri- plans for protection against flood- nefits from its blend of UNESCO tage Convention help? ing and as a long-term investment Cultural Heritage features and na- Recognition by the UNESCO World is still too low. A lot of educational tural scenic beauty. This would at- Heritage Convention often has a and sensitization input will be need- tract and form durable links with magnetic effect on tourism. But ed in order to project the image of people interested in both culture even more important is that the a living Elbe as one of Europe’s few and regions of natural beauty. international community actually remaining unspoiled rivers – not ensures that the heritage is pro- just locally, but also at the natio- Could recognition of an area as Elbe” have taken great pains not to squeeze their Another visionary creation on the banks of the Nature prevails intact tected and cared for, so that impor- nal, European and international part of World Heritage have spin- Professor Bernd von river into a tight corset. Dresden’s Elbe meadows Elbe is Hamburg’s Speicherstadt, erected toward along several tant natural and cultural assets are level. One crucial requirement is to off effects on neighboring areas? Droste zu Hülshoff are unique in Europe – a largely undeveloped flood the end of the 19th century near the city’s then new stretches of the Elbe preserved for future generations. achieve a high degree of environ- The case of the Dessau-Wörlitz gar- was the first Director plain 35 kilometers long that is flooded when high free port. Its seven-story, red-brick, neo-Gothic Many signatory states of the World mental awareness and commit- den landscape demonstrates how of the UNESCO’s water comes. The meadows are a favorite recrea- buildings remain the largest contiguous warehouse Heritage Convention seek to polish ment to the care of natural assets World Heritage can make a crucial World Cultural Heritage tion area for the people of Dresden and the habitat complex in the world. Like its source, the mouth of their international image by doing among younger generations. They contribution to a region’s develop- Center in Paris and of rare species such as the corncrake, kingfisher and the Elbe is embedded in nature reserves.Here, the exemplary work to preserve their will have to be educated to become ment. Culturally and ecologically now works for UNESCO black kite. water from this great European river disperses in- natural and cultural heritage. Ex- tomorrow’s protectors of our world sensitive tourism can help create as an adviser on world But it is not just the Elbe’s spectacular natural to the North German coastal flats and the North Sea. perience has shown that pressure heritage. secure jobs and incomes in a place heritage scenery that is worth discovering. Whole chapters The mouth of the Elbe is where the adult salmon col- from international media and the recognized by the World Heritage of the world’s history have been written in towns lect to start their arduous journey back to the streams so-called “reputation factor” are Parts of the valleys of some of Eu- Convention, thus benefiting the lying on this 1,091-kilometer river running through where they were born. highly efficient tools for preserving rope’s great rivers such as the whole region. 58 GRUNER + JAHR I ANNUAL REPORT 2003 ENVIRONMENTAL REPORT 2003 I GRUNER + JAHR 59

ENVIRONMENTALLY CONSCIOUS OPERATION is a key corporate principle at G+J. The G+J manage- ment approved a corporate environment policy back in 1991. This called for separate waste collection and recycling/disposal facilities, the use of environmen- tally compatible and non-injurious office materials and economical use of energy and water resources.

The G+J printing plants at Itzehoe and Dresden work to the highest technical and ecological stan- dards. They are as efficient as possible in their con- sumption of energy, paper and ink. Gruner Druck in Itzehoe was the first printing operation in Germany to introduce integrated quality and environmen- tal management. Quality and environmental audits based on the international DIN EN ISO 9.001 and ENVIRONMENTAL 14.001 normswere performed and a process-orien- ted management system designed. This means that all stages in the work flow are designed to con- form to the norm requirements. Members of the COMMITMENT AT G+J company’s staff do not have to worry about wheth- er they are complying with the norms in their every- How Gruner + Jahr helps protect the environment: day work because they do this automatically when with the economical use of precious resources as well as following standard procedures. targeted campaigns and projects PAPER Paper is an important raw material for a printing and publishing house like G+J. The paper used for printing must be manufactured to the most stringent environmental standards. These in- clude the use of wood pulp obtained from compa- nies practicing regenerative forest management, environmentally compatible cellulose and paper manufacturing processes, environmentally compati- ble printing inks, and paper recycling. No wood from forests worthy of preservation may be used in the manufacture of paper for G+J. Together with other German publishers and paper manufacturers, G+J has drafted certification criteria for ecological forest management. As a mem- ber of the VDZ Environmental Work Committee, 60 GRUNER + JAHR I ANNUAL REPORT 2003 ENVIRONMENTAL REPORT 2003 I GRUNER + JAHR 61

G+J supports and sponsors communication and operating with the private nature conservation as- regional coordination between economic, ecologi- sociation Legambiente since 2002 in a campaign for cal and social interest groups on matters relating clean seaside resorts. FOCUS paid for the produc- to definition of the degree of protection needed by tion and circulation of several thousand posters to forests. For ecological reasons, all G+J’s German municipalities and supported Clean Beach cam- magazines are printed on chlorine-free bleached paigns with reports and appeals to the public to re- paper. The wastepaper content of our magazines commend extremely clean beaches and denounce has now reached levels ranging from 15 percent dirty ones. (e.g. STERN) to 33 percent (GEO). G+J newspapers are printed on paper produced entirely from recycled wastepaper. NATURE ON YOUR DOORSTEP G+J, which pro- duces some of its magazines and newspapers in Hamburg and Dresden, both cities situated on the INITIATIVES The environment is also a prominent Elbe River, has a strong commitment to this great theme in G+J magazines and newspapers. Articles European river and the people living on its banks. in STERN, GEO, BRIGITTE and ELTERN uncover en- The Living Elbe project launched jointly by Gruner vironmental scandals, support campaigns and give + Jahr and the German Environmental AId Asso- tips for protecting the environment. Business mag- ciation in 1997 has developed a comprehensive azines like CAPITAL and IMPULSE promote out- plan for the preservation of the river and its valley standing environmental innovations in the business from its source in the Czech Republic to its mouth world. “Eco funds: not just for the sneaker-wearing at the North Sea. The project supports more than set” – was the title of an article in the FINANCIAL 400 environmental organizations working in various TIMES DEUTSCHLAND. G+J magazines and news- regions along the river and promotes interest in papers are constantly launching campaigns encour- the Elbe valley amongst children with its “Schools aging readers to support ecological projects. for a Living Elbe” campaign. Children at over 200 One shining example of this was the “GEO Pro- schools are now testing water quality, preparing re- tects the Rain Forest” initiative, which has helped ports on pollutants and investigating how the land to found or sponsor just under 50 environmental bordering on the river is used. protection and development projects in the tropics The “GEO Day of Species Diversity” founded in since its launch in1989. With the slogan “GEO helps 1999 is now an established institution. It is a project the bean,” the association organized the import and for exploring Nature on one’s own doorstep. Now sale of wild coffee from the Ethiopian Highlands, the the largest field research undertaking in Europe, it coffee plant’s natural habitat. This helped to make involves tens of thousands of experts and laymen the harvesting of wild coffee beans profitable once who set out each year on the first weekend in June again for farmers in the province of Kaffa and to pre- to catalog the fauna and flora they find in streams, serve the variety of plant species in the wilds of meadows and woods. The project aims to bridge Ethiopia. the gap frequently existing among the general pub- It is spreading to many other countries as the lic between interest in the environment on the one company expands internationally and exports its hand and lack of knowledge of the plant and animal magazine titles. G+J gives financial support to the kingdoms on the other. It represents an important Natural Resources Defense Council (America’s step toward eradicating the misconception that largest nature preservation association) in the Unit- there is no longer anything of natural interest or ed States. The Italian magazine FOCUS has been co- beauty to be discovered in central Europe. 62 GRUNER + JAHR I ANNUAL REPORT 2003 CORPORATE RESPONSIBILITY REPORT 2003 I GRUNER + JAHR 63

CORPORATE RESPONSIBILITY REPORT 2003 How Gruner + Jahr takes the initiative with many projects when it comes to social, Popular with the public: Crowds flock to the G+J- Winner: Stefan Willeke (Die Zeit) is presented with cultural and ecological issues and sponsors art, science and young talent. exhibitions the Erwin Egon Kisch Prize 2003

ACCEPTANCE OF SOCIAL RESPONSIBILITY Gruner + Jahr’s exhibitions are a valuable contribu- Gruner + Jahr and the Hamburg Association of Literature Prize, awarded every two years by BRI- Gruner + Jahr’s magazines inform, entertain and fas- tion to cultural life, with an impact extending far be- Friends of Photography also organize viewings of GITTE magazine, is another prize dedicated to the cinate the public. They also stand for top-quality jour- yond the borders of Hamburg. Over 60,000 people the portfolios of young photographers twice a year. power of the written word. (Winners of this compe- nalism. As an internationally active publisher, we visit the G+J Press Building on Hamburg’s Baum- tition for German short-story writers include Doris make a significant contribution to public debate and wall each year to see international exhibitions like Dörrie, Christiane Krause and Markus Ramsmeier.) to the formation of global public opinion. Conse- the German premiere of the World Press Photo quently, we wholeheartedly recognize the need to Awards (an event organized jointly by STERN, CULTURAL DIVERSITY complement our entrepreneurial objectives with ac- GEO and Deutsche Bahn) and the “ausgezeichnet” G+J makes an active contribution toward the diver- tive social responsibility. First and foremost in this (Award Winners) exhibition. This displays the work sity of Hamburg’s cultural scene. In addition to sup- SCIENCE AND EDUCATION regard come our staff because they are the key to of upcoming young talent that has won awards porting the International House of Photography, the The women’s magazine BRIGITTE founded the IT our success. Next comes our concern for the future like the BFF (Association of Freelance Photographic company has also been sponsor of the Hamburg Academy for Women in 2001 with a view to im- of the human race and the need to promote a dia- Designers) prize, the Reinhart Wolf prize and the State Opera and the German Music Foundation for proving women’s opportunities on the labor mar- log with the public. Modern environmental manage- Kodak prize for young photographers. many years. Backing is also given to a number of ket. The academy provides IT courses for begin- ment, social commitment and the sponsorship of small neighborhood art projects and to the activities ners and also women in and out of employment art, culture and photography are important facets of of the Hamburg Cultural Foundation. seeking to improve their basic knowledge of IT the G+J corporate culture. and test their potential for a career in one of the jobs SPONSORSHIP OF YOUNG TALENT. in this new field. The IT Academy for Women now Gruner + Jahr attaches particular importance to has a German national network of 36 training es- sponsoring upcoming young photographic talent. ART OF AUTHORSHIP tablishments offering a total of over 130 courses. SPONSORSHIP OF ART, CULTURE AND PHOTO- The publishing house supplemented the photo- G+J magazines have founded a host of valuable pri- The IT Academy for Women is a joint initiative GRAPHY graphs regularly displayed in the foyer of the G+J zes and writers’ competitions. The spotlight switch- with Siegen Technology Center. It receives finan- “As Europe’s largest magazine publishing house, building in 1998 by the opening of Galerie 11, and es once a year to journalistic reporting when cial support from the North-Rhine-Westphalian we are dedicated to sponsoring quality photo- has been providing this platform for experimental STERN’s Egon Erwin Kisch Prize is awarded. This Economics Ministry. graphy. Our magazines STERN and GEO stand for artistic photography by young photographers for prize is Germany’s most celebrated journalistic the continuing significance and power of the pho- six years now. Exhibitions here such as Automaton award and commemorates the reporter of that to throughout the world,” declared Bernd Kundrun, Pictures by photographic artist Jan Wenzel and name who once worked for STERN. Hundreds of President and CEO of Gruner + Jahr, at the German Freckles Portraits by Michael Neugebauer have newspaper and magazine journalists compete for premiere of World Press Photo. aroused great interest. the coveted prize every year. The Bettina von Arnim 64 GRUNER + JAHR I ANNUAL REPORT 2003 CORPORATE RESPONSIBILITY REPORT 2003 I GRUNER + JAHR 65

Courage to oppose right-wing violence: Families Christmas bazaar: G+J boss Bernd Kundrun hands UNICEF photo of the year: Patron Christina Rau chats Service: A jointly produced magazine for the blind is minister Schmidt supports the STERN campaign over the proceeds with other exhibition visitors published biweekly

YOUTH RESEARCHES ENABLING THE BLIND TO READ winning entries in this international competition are sponsors international youth exchanges with its “Youth researches,” an idea born by STERN, has de- Through its STERN magazine, Gruner + Jahr has photographs forcefully depicting the circumstanc- Come on! project. Children of G+J employees can veloped into the biggest scientific and technologi- been engaged in work to help blind and partially es in which some children live. Gruner + Jahr also spend a summer as guests of a family in France, cal competition in Europe. Following the project’s blind persons for nearly 40 years. Henri Nannen and gives assistance to people closer to home. An in- Italy, Spain, Poland, Russia, the United States or great success and the impressive scientific results Gerd Bucerius together developed a magazine for itiative entitled “Silver Lining – People Help People” Germany, learn the language and experience the emerging from it, the nonprofit foundation Jugend the blind in 1968. This has since been used in a non- was launched in 1996 by the SÄCHSISCHE ZEI- local culture while interacting with the local chil- forscht e.V. was founded in1975. The prize is award- profit project under which selected articles from TUNG and converted into a foundation in 2003. dren. G+J also sponsors transatlantic dialog be- ed for unusual work, for example, a solar-powered STERN and the Zeit newspaper appear in a 52- Working with over 330 charitable organizations, tween journalists by giving financial support to Walkman, a digital watchdog for computers, and an page magazine published at 14-day intervals and this foundation now helps deserving cases in the the Arthur F. Burns journalist exchange program. adhesive containing no solvents in 2003. The Fed- circulated to some 2,500 blind and partially blind state of Saxony, especially victims of violence, han- The work of G+J’s US employees deserves spe- eral German Ministries of Education and Science readers, and also to several institutions for the dicapped and mentally or chronically ill persons. cial mention at international level. They go once and Research and Technology are involved in this blind. BRIGITTE and GEO now also produce pub- weekly to a primary school in Manhattan, where STERN initiative, together with a large number of in- lications for the blind. BRIGITTE has all the texts they teach dyslexic children. Another example, dustrial sponsors. translated into Braille and circulates them either from the French Gruner + Jahr subsidiary, Prisma by e-mail or floppy disk. These can either be con- CHARITABLE DONATIONS Presse, is its sponsorship of the association “A verted into Braille dots with a special PC keyboard In addition to its nonprofit projects, Gruner + Jahr chacun son Everest,” which organizes adventure or read out loud electronically. The “Taped News- makes charitable donations and publishes fund- tours in the mountains for children with cancer, THE FIGHT AGAINST XENOPHOBIA paper for the Blind” campaign produces a monthly raising advertisements. Its staff also takes social re- with both financial donations and reports publiciz- Reacting to the worrying increase in neo-Nazi acti- audio issue of GEO magazine. sponsibility very seriously. The proceeds from the ing the association’s activities. vities in Germany, STERN magazine launched the Christmas bazaar organized by staff members have campaign “Mut gegen rechte Gewalt” (roughly gone to Hamburg charities for the last 25 years. “Courage to Oppose Rightwing Violence”) to com- bat hate, discrimination, racism and intolerance. HELPING PEOPLE One very effective pilot project organized in con- Ever since its launch in 1996, GEOLINO has pub- nection with this campaign is EXIT, which provides lished a monthly report publicizing UNICEF’s work. AN INTERNATIONALLY ACTIVE ORGANIZATION individual assistance and advice to people wish- The UNICEF Photo of the Year competition was also HAS OBLIGATIONS ing to terminate their association with neo-Nazi and sponsored by GEOLINO in 2001 and 2002, and the In order to enable young people to experience the other rightwing groups and organizations. sponsorship was taken over by GEO in 2003. The benefits of international contacts, Gruner + Jahr 66 GRUNER + JAHR I ANNUAL REPORT 2003 CORPORATE RESPONSIBILITY REPORT 2003 I GRUNER + JAHR 67

THE POWER OF IMAGES How Gruner + Jahr became an acknowledged institution for a host of art and photo exhibitions at its Press Building on Baumwall

An icon for the year 2003: This photo, taken in Iraq by Jean-Marc Bouju, won the World Press Photo Award CORPORATE RESPONSIBILITY REPORT 2003 I GRUNER + JAHR 69

PHOTOGRAPHS ARE AN INTEGRAL PART OF RUTH EXHIBITIONS AT THE EICHHORN’S LIFE. But an assignment involving the PRESS BUILDING ON inspection and evaluation of some 23,000 photo- BAUMWALL graphs in the space of five days and selecting the (SELECTION) best of them was a little unusual even for her, the Chief Photographic Editor of the GEO family of A MAGIC WEB – magazines. “It was an emotional roller coaster ride,” THE FOREST OF says Ruth, who was appointed a member of the BARRO COLORADO World Press Photo jury for the first time this year. Photographs by World Press Photo is the biggest and most presti- Christian Ziegler gious prize awarded for photographic journalism Galerie 11 anywhere in the world. What the nine-member, international jury of photographers, picture editors AUTOMATON PIC- and agency representatives gets to see and adju- TURES dicate does not always depict the world’s prettiest Photographs by Jan side. There are plenty of pictures of war and conflict, Wenzel, Galerie 11 of injured, dead and mutilated people, which are redolent of misery, pain, despair and hopelessness. WORLD PRESS “Pictures that sometimes make me want to close PHOTO 2002 my eyes,” says Ruth. Actually, the jurors only get to see about one third of the 63,000 or so entries. FRECKLES 40,000 fail to pass the initial screening by a prelim- Photographs by inary jury, which sets high standards of technical Michael Neugebauer perfection, composition and news relevance. Galerie 11

The object of the prize, which has been awarded THE MAGIC OF THE for the last 47 years, is to acknowledge the work of COUCH. INSIGHTS professional press photographers and also to give INTO THE HOLY OF encouragement to upcoming young talent. Gruner HOLIES OF PSYCHO- + Jahr has been supporting the work of World Press ANALYSIS Photo in Germany for the past ten years. Photo- Photographs by graphy is one of the focal points of the exhibitions Claudia Guderian organized and staged by Gruner + Jahr, which coop- Galerie 11 erates on the projects with a number of its mag- azines (STERN, GEO etc.). The projects include not “TELL ME ABOUT only World Press Photo, but also the BFF and Rein- LIFE” hart Wolff Prizes, as well as exhibitions of the work A BRIGITTE exhibi- The countdown is on: The exhibition team has just two days to get all 200 photos of the World Press Photo Awards hung of young photographers in the so-called Galerie 11. tion with photo- The World Press Photo prizes regularly awarded graphs by Ilse Thoma to STERN and GEO are ample proof of the high photographic standards set by these magazines. IN THE GARDEN Peter Bialobrzeski’s series Megacities of Asia took Photographs by away first prize in the Art and Entertainment cate- Ulrike Thiele gory in 2003. Pictures from this series were pub- Galerie 11 lished in the GEO report entitled The Turbo-Cities. Also published in GEO was Horst Wackerbarth’s FUTURE ONE photo The Red Couch: Tourist Guide Klara Sigur- Photographs by dottir, which won 3rd prize in the Art and Enter- Marcus Höhn tainment category. Galerie 11 70 GRUNER + JAHR I ANNUAL REPORT 2003 CORPORATE RESPONSIBILITY REPORT 2003 I GRUNER + JAHR 71

Naked misery: The World Press Photo exhibition includes some heartrending While the jurors were burning the midnight oil certain highlights of the exhibition. Before going up AWARD WINNERS pictures. Foreground: A discussing the photographs in Amsterdam at the on the wall, the pictures are propped against the 14th BFF (Association street kid in Mongolia (photo: end of February, preparations for the big premiere screens, shifted around and rearranged time and of Freelance Photo- Jacob Ehrbahn) of World Press Photo Award were getting underway again. By the time the two curators are satisfied, it graphic Designers) in Hamburg. This premiere is traditionally held in is getting close to midnight. Prize, Reinhart Wolf Germany at the Gruner + Jahr Press Building on Prize and 15th Kodak Hamburg’s Baumwall toward the end of April and Work starts at the crack of dawn on the day of Young Talent Award is regularly attended by up to 1,000 invited guests. the premiere. Steeplejacks affix a 9 x 7-meter pos- Painters, sound and light technicians, decorators, ter announcing the exhibition to the wall of the MULTIPLE 216 security officers and, of course, caterers have to be Press Building facing the river. Fifty journalists Photographs by briefed and coordinated. The team responsible for and four camera teams come to the morning press Christoph Siegert the exhibition also has to send out invitations, hold conference. The catering service starts delivering Galerie 11 meetings with sponsors and make preparations for food and drink from midday onward. By the end of the press conference. But the most difficult bit has the evening, the guests will have consumed around WORLD PRESS still to come. Two days before the opening of the 5,000 snacks, 450 liters of water, 200 liters of PHOTO 2003 exhibition, the prizewinning photos arrive in Ham- orange juice and about the same quantity each of burg by airfreight, all framed and packed in special beer and wine. Rearrangement of the furniture crates. Along with a representative of World Press and decoration of the foyer begins during the after- Photo, the Gruner + Jahr setup team sets to work noon. At the last minute, a snap decision is made on hanging them. No easy task when you have to remove the floral decorations. “The lush bou- some 200 photos in a variety of formats and clas- quets seem out of place when you look at some of sified into nine often widely divergent categories these horrifying pictures.” The first guests arrive at like Hard Facts, Everyday Life, Nature, and Art and 7 p.m. Ruth Eichhorn is among them. Entertainment. Can pictures of the war in Liberia be placed next to pictures from the world of sport? Can Had it been her decision, another photo would you hang black-and-white next to color photos? probably have won. The winner at World Press Pho- to, taken in southern Iraq by French photographer “If you place the pictures correctly, it’s like taking the Jean-Marc Bouju, shows an Iraqi prisoner of war visitor by the hand and leading him through the ex- with a sack over his head behind barbed wire, hibition,” Karen Fromm explains. She speaks from ex- comforting his four-year-old son.Yet Ruth Eichhorn perience. The pictures are hung at an average height backs the jury’s decision since the important thing of 1.65 meters in such a way that the viewer’s gaze at World Press Photo is the picture’s significance wanders from left to right. “It’s like reading,” she to the observer. “The winner is an icon for the year adds. The visitor’s eyes are skillfully steered toward 2003. A picture that sticks in people’s minds.”

Attracted great attention: This year’s winner, Jean-Marc Bouju (right), in an interview with TV channel ZDF 72 GRUNER + JAHR I ANNUAL REPORT 2003 FINANCIAL STATEMENTS I GRUNER + JAHR 73

GLOBAL BALANCE SHEET PROFIT AND LOSS STATEMENT as of December 31, 2003 January 1, 2003 to December 31, 2003

ASSETS (EUR ‘000) 12/31/2003 12/31/2002 (EUR ‘000) 2003 2002 Intangible assets 261,619 408,619 Sales revenues 2,480,702 2,806,950 Tangible assets 614,219 662,287 Changes in inventories 409 4,245 Financial assets 47,059 50,563 Other operating income 85,392 119,145 Fixed assets 922,897 1,121,469 2,566,503 2,930,340 Inventories 80,206 91,133 Trade receivables 287,968 329,853 Raw materials, consumables and supplies -802,168 -927,587 Amounts due from affiliated undertakings 177,468 301,778 Personnel expenses -763,586 -847,816 Other assets 200,342 160,152 Amortization/Depreciation of intangible and tangible assets -187,114 -255,036 Liquid funds 96,110 50,703 Other operating expenses -697,820 -819,465 Current assets 842,094 933,619 Profit/loss on disposal of fixed assets 51,469 184,976 Deferred taxation 13,278 12,730 Operating profit 167,284 265,412 Deferred expenses 8,627 10,062 1,786,896 2,077,880 Profit/loss (-) of affiliated undertakings 3,313 -9,364 Share of profit/loss (-) from joint ventures and associated undertakings 11,018 -9,695 Profit before interest and taxes 181,615 246,353 LIABILITIES (EUR ‘000) 12/31/2003 12/31/2002

Partners’ shares, Subscribed capital 77,307 77,307 Net interest -40,320 -62,382 Retained earnings 114,140 108,124 Taxes on income -48,362 -58,026 Net loss for the year -25,661 -53,884 Net profit (before deduction of minority interests) 92,933 125,945 Shareholders’ equity (not incl. minority interests) 165,786 131,547

Minority interests 62,159 104,415 Minority interests -13,055 22,754 Shareholders’ equity (incl. minority interests) 227,945 235,962 Net earnings for the year 79,878 148,699 Preferred stock 40,903 40,903 Accruals for pensions and similar obligations 551,390 532,367 Tax accruals 1,671 13,960 Other accruals 177,788 195,915 Accruals 730,849 742,242 Liabilities to financial institutions 10,504 7,093 Leasing liabilities 132,575 137,931 Trade payables 199,142 195,003 Amounts due to affiliated undertakings 206,538 441,083 Other liabilities 98,595 123,541 Liabilities 647,354 904,651 Deferred taxation 10,356 15,229 Deferred income 129,489 138,893 1,786,896 2,077,880 74 GRUNER + JAHR I ANNUAL REPORT 2003 FINANCIAL STATEMENTS I GRUNER + JAHR 75

Co KG and Gruner + Jahr AG and the subsidiary undertakings included notes were also examined by the relevant auditors, who supplied written GRUNER + JAHR IN FIGURES in the consolidation. confirmation that the national financial statements had been correct re- The acquisition method is used for capital consolidation. This offsets the conciled with the standard Group accounting and valuation procedures. Magazines – Newspapers – Printing facilities cost of acquisition of the interest in a company against the share of the equity acquired. Allowance is made for deferred taxation on hidden reserves and charges revealed at the time of first consolidation except CURRENCY TRANSLATION in cases where the relevant tax payments or refunds are made at the time The annual financial statements of the foreign subsidiary undertakings (EUR ‘000 000) 2003 2002 of their revelation. Any remaining positive difference between acquisi- have been translated into Euro in accordance with the provisions of IAS Sales revenue 2,481 2,807 tion cost and current asset value is capitalized as goodwill and amortized 21 relating to functional currencies. As all subsidiary undertakings are fi- by the straight-line method over its assumed useful life. Hidden reserves nancially, commercially and organizationally independent in the conduct Operating EBITA 238 233 and charges revealed at the time of first consolidation are written down of their business, the functional currency is in all cases the national cur-

1) or written back in subsequent fiscal years in accordance with the treat- rency and the modified balance sheet closing date method is conse- Cash flow 236 253 ment of the relevant assets and liabilities. Negative differences not result- quently used to determine the exchange rates at which values are trans- Total assets 1,787 2,078 ing from anticipated losses are written back over a scheduled period in lated. Assets and liabilities are consequently translated at the middle rate accordance with the provisions of IAS 22. The same principles are used for applying on balance sheet closing date. Capital stock (after deduction of minority interests) 228 236 the capital consolidation of partially consolidated undertakings. The average exchange rate over the fiscal year under review is used for Loan capital 1,559 1,842 Associated undertakings valued by the equity method are carried at the items in the income statement. Difference in balance sheet items arising proportion of the equity owned in them. The principles used for fully con- from fluctuations in exchange rates used in the prior year and similar dif- Fixed assets 923 1,121 solidated companies are used for the calculation of differences between ferences arising for this reason between the income statement and the Current assets 864 957 acquisition cost and value of the equity share held. Losses on associated balance sheet are credited or debited to equity without affecting earnings. undertakings in excess of the book value of the relevant shareholding are When companies are deconsolidated, any accumulated currency trans- Personnel expenses 764 848 not shown unless there is an obligation to make an additional contribution. lation differences are written back against earnings. The following ex- All intra-group profits and losses, sales revenues, expenses, earnings, ac- change rates have been used to translate the financial statements of the Employees on balance sheet date 2) 11,352 11,862 counts receivable and payable and accruals in the accounts of the com- companies operating in the most important countries included in the glo- 1) calculated by the DVFA/SG method panies included in the consolidation are eliminated. The same principles are bal financial statements (equivalent value of currency unit to one Euro): 2) new method of calculation as from 2003, comparative figures shown for 2002 used proportionately in the case of partially consolidated undertakings. Interim results from the supply of goods and services between the com- Average rate Rate at closing day panies included in the consolidation have been ignored because they are 1/1-12/31/03 1/1-12/31/02 12/31/03 12/31/02 of only minor significance for the Group’s net worth, earnings and financial US-Dollar ( USD) 1.1312 0.9416 1.2630 1.0487 situation and the calculation of the relevant values would have involved Polish Zloty (PLN) 4.4053 3.8344 4.7019 4.0210 disproportionately high expense.

ACCOUNTING AND VALUATION METHODS COMPANIES INCLUDED IN THE CONSOLIDATION INTANGIBLE FIXED ASSETS NOTES TO THE GLOBAL FINANCIAL STATEMENTS 88 companies (including the parent companies) have been fully consoli- Intangible fixed assets created within the group are capitalized at devel- dated (prior year: 90). opment cost, provided that they fulfill the conditions stipulated in IAS 38. All except 30 (prior year: 28) affiliated German and foreign companies Intangible fixed assets acquired from third parties are capitalized at AS OF DECEMBER 31, 2003 have been included in the consolidation. The companies not included have acquisition cost. Intangible fixed assets are normally amortized by the no significant business activities and have been excluded from the glo- straight-line method over their useful life. Capitalized software is amor- bal financial statements because they are as a whole of only minor im- tized over three or four years, licenses over the period of the relevant LEGAL BACKGROUND The fiscal year is identical with the calendar year and runs in the pre- portance for the group’s net worth, earnings and financial situation. licensing agreement and supply rights and subscription customers over Bertelsmann AG owns majority interests in Gruner + Jahr AG & Co KG sent case from January 1 to December 31, 2003. The global financial There were the following changes in the companies included in the con- periods of not more than 15 years. and Druck- und Verlagshaus Gruner + Jahr AG of Itzehoe (Gruner + Jahr statements are presented in Euro rounded off to the nearest thousand solidation during the fiscal year under review: Goodwill arising from acquisitions is capitalized in accordance with the AG), and these companies and their subsidiaries are included in Ber- Euro (€‘000). For greater clarity, individual items have been summarized provisions of IAS 22 and amortized by the straight-line method over its telsmann’s consolidated annual financial statements. Gruner + Jahr AG in the balance sheet and income statement presentations. These items German Foreign Total estimated useful life, which can vary between 5 and 15 years. Goodwill is the managing general partner in Gruner + Jahr AG & Co KG with a are analyzed and explained in greater detail in the notes to the financial Included on December 31, 2002 57 33 90 from capital consolidation is translated at the exchange rate applying at two percent interest in that partnership. Gruner + Jahr AG possesses the statements. Additions 4 3 7 the date of first consolidation and carried in subsequent years at the his- powers of direction, in particular for the Gruner + Jahr Group’s foreign The total cost procedure has been used in the break-down of the income Disposals 4 5 9 torical exchange rate. printing and publishing activities, which are for legal purposes largely as- statement. Profits and losses resulting from the sale of subsidiary under- Included on December 31, 2003 57 31 88 signed to the shareholders. Although no legal obligation exists, the joint takings are significant items and are consequently shown separately. parent company Gruner + Jahr AG & Co KG and Gruner + Jahr AG volun- The percentage interests held in 2 (prior year: 2) joint ventures are in- TANGIBLE FIXED ASSETS tarily draw up global financial statements for the Gruner + Jahr Group, cluded in the consolidated financial statements. Of the 15 (prior year: 25) Tangible fixed assets are carried at acquisition or manufacturing cost less in which its German and foreign subsidiaries are included. CONSOLIDATION associated companies included, 9 (prior year: 11) are carried at the value accumulated depreciation. Scheduled depreciation is charged at uni- The global balance sheet and global income statement of the Gruner + PRINCIPLES USED IN THE CONSOLIDATION determined by the equity method. The remaining ones are of only minor form rates throughout the group and assumes the following periods of Jahr Group for the fiscal year from January 1,to December 31, 2003 have All significant subsidiary undertakings directly or indirectly controlled by importance and are carried in the consolidated financial statements at useful life: been prepared in accordance with International Financial Reporting Stan- Gruner + Jahr AG and Gruner + Jahr AG & Co KG as defined in IAS 27 acquisition cost. dards (IFRS) and with the interpretations issued by the Standard Inter- are included in the consolidated financial statements. Joint ventures as The annual financial statements of the fully consolidated companies Buildings 10 – 50 years pretations Committee/International Financial Reporting Interpretations defined in IAS 31 are consolidated proportionately to the interest held in have been examined by the appointed auditors in accordance with Machinery and technical equipment 5 – 15 years Committee (SIC/IFRIC) of the IASB. them. Significant associated companies are carried in the balance sheet the auditing principles applying in the relevant countries. Audit certificates Office and factory equipment 3 – 12 years There is a statement of changes in equity as of December 31, 2003. The at values determined by the equity method as stipulated in IAS 28 in tho- for the annual financial statements prepared in accordance with govern- notes to the consolidated financial statements as of December 31, 2003 se cases where significant influence can be exerted. This is normally the ing national law were available. Secondary commercial balance sheets do not however contain all the data required by IFRS. Nor has any cash case when between 20 and 50 percent of the voting rights are held. were also prepared by the foreign subsidiary undertakings using the uni- LEASING flow statement been prepared. Consequently, the global financial state- Uniform accounting and valuation methods are used in the preparation form IAS/IFRS accounting and valuation methods which are standard In cases where a group company enjoys all significant opportunities ments of the Gruner + Jahr Group do not fully comply with IFRS. of the financial statements of the parent company Gruner + Jahr AG & throughout the Group. These reporting packages and the accompanying and bears all significant risks under leasing agreements and can 76 GRUNER + JAHR I ANNUAL REPORT 2003 FINANCIAL STATEMENTS I GRUNER + JAHR 77

consequently be regarded for financial purposes as the owner of the DEFERRED TAXATION relevant assets (finance leases), these assets are capitalized at the In accordance with IAS 12, deferred taxation assets or liabilities have PRINCIPLE SUBSIDIARY AND ASSOCIATED time of signature of the leasing agreement at the lower of market been created for all timing differences between the tax balance sheet and value or cash value of future leasing installments. The payment obliga- the IAS consolidated balance sheet – except for goodwill items not de- tion resulting from the finance lease is carried at the same level under ductible for tax purposes – and for tax-deductible losses carried forward UNDERTAKINGS liabilities to financial institutions. from prior years. Deferred taxation assets are adjusted to allow for In cases where it is reasonably certain that the leased assets will pass items not expected to qualify for later deduction. The tax rates used for into the ownership of the group company, they are depreciated over calculating the amount of the deferrals are those expected to apply in the WHOLLY OWNED GERMAN AFFILIATES FOREIGN AFFILIATES AND JOINT VENTURES their useful life. In all other cases they are depreciated over the period future on the basis of currently known tax legislation. Adjustments reflec- of the licensing agreement. The level of installments payable by the les- ting the effect of tax rate changes on deferred taxation assets or liabil- Gruner + Jahr AG & Co KG, Hamburg Gruner + Jahr/Mondadori S.p.A., Milan, Italy 50 % see varies with fluctuations in interest rates charged by the lessor. ities are normally made in the accounting period in which the relevant tax Berliner Presse Vertrieb GmbH, Berlin Gruner + Jahr Polska Sp. z.o.o. & Co., In addition to the aforementioned finance lease agreements, hire agree- regulations are published and are added to or deducted from earnings. Börse Online Verlag GmbH & Co. KG, Munic Spolka Komandytowa, Warsaw Poland 100 % ments definable as operating lease agreements have been signed in DPV Deutscher Pressevertrieb GmbH, Hamburg Gruner + Jahr Printing and Publishing Company, some cases. In these cases the leased assets remain the property of the Ehrlich & Sohn GmbH & Co. KG, Hamburg New York/Waseca, USA 100 % lessor and the leasing installments are treated as expenses arising during OTHER COMPREHENSIVE INCOME G+J Corporate Media GmbH, Hamburg Gruner + Jahr (Schweiz) AG, Zurich, Switzerland 100 % the accounting period. Total leasing installments payable during the basic, Other comprehensive income includes differences resulting from curren- G+J Electronic Media Service GmbH, Hamburg Gruner + Jahr Verlagsgesellschaft m.b.H., Vienna, Austria 100 % non-terminable leasing period are shown under other financial liabilities. cy translation and from the calculation of the fair value of cash flow hed- G+J Electronic Media Sales GmbH, Hamburg Gruner + Jahr ZAO, Moscow, Russia 100 % ges. It is added to or deducted from equity and does not affect earnings. G+J Wirtschaftspresse Online GmbH, Munic GyJ España Ediciones S.L., S. en C., Madrid, Spain 100 % G+J Woman Verlag GmbH, Hamburg GyJ Revistas y Communicaciones S.L., Madrid, Spain 100 % UNSCHEDULED AMORTIZATION OF INTANGIBLE FIXED ASSETS G+J Zeitschriften-Verlagsgesellschaft mbH, Hamburg GyJ Publicaciones Internacionales S.L. y Cia., S. en C., AND UNSCHEDULED DEPRECIATION OF TANGIBLE FIXED ASSETS ACCRUALS IPV Inland Presse Vertrieb GmbH, Hamburg Madrid Spain 50 % Unscheduled amortization/depreciation of intangible and tangible fixed In accordance with IAS 19, the level of accruals for pensions and simi- Living At Home Multi Media GmbH, Hamburg G+J Clip (Beijing) Publishing Consulting Co.Ltd., assets is charged in accordance with IAS 36 in cases where the net lar obligations is determined by the projected unit credit method. This MVF Magazin-Verlag am Fleetrand GmbH, Hamburg Peking, China 51 % realizable value of the assets at balance sheet closing date has fallen method makes allowance not only for basic biometric statistical data Norddeutsche Verlagsgesellschaft mbH, Hamburg G+J/RBA Publishing C.V., Amsterdam, Netherlands 50,5 % below the book value. The net realizable value is calculated as the hig- but also for current long-term interest rates on the capital market and Picture Press Bild- und Textagentur GmbH, Hamburg G+J/RBA S.N.C., Paris, France 100 % her of the net disposal value or the cash value of the anticipated futu- current assumptions on future trends in salary and pension levels. The stern.de GmbH, Hamburg G+J RBA Sp. z.o.o. & Co., Spolka Komandytowa, re cash flow from the assets. proportion of pension expenses attributable to interest is included in Neon Magazin GmbH, Hamburg Warsaw, Poland 100 % In cases where the grounds for unscheduled amortization/depreciation the net interest item. Prisma Presse S.N.C., Paris, France 100 % no longer apply, the assets are written up again. The write-up in no case Other accruals are created in accordance with IAS 37 as from the time Shanghai G+J Consulting and Service Co.Ltd., exceeds the amount which would have applied if the unscheduled amor- when it appears probable not only that an obligation has arisen that will GERMAN JOINT VENTURES AND ASSOCIATED UNDERTAKINGS Shanghai, China 100 % tization/depreciation had not been charged cause a future cash outflow, but also that its amount can be reasonably Verlagsgruppe NEWS Ges.m.b.H., Tulln, Austria 56,03 % determined. Accruals for warranties and threatening losses are created Dresdner Druck- und Verlagshaus GmbH & Co.KG, Dresden 60 % VSD S.N.C., Paris, France 100 % at full manufacturing-related cost. Long-term accruals are discounted. Financial Times Deutschland GmbH & Co.KG, Hamburg 50 % SHAREHOLDINGS AND SECURITIES G+J/RBA GmbH & Co.KG, Hamburg 50 % Significant holdings in associated undertakings are carried at the value Hamburger Journalistenschule determined by the equity method. All other shareholdings and securities LIABILITIES Gruner + Jahr-DIE ZEIT GmbH, Hamburg 95 % included under fixed or current assets are treated as securities available Liabilities are carried at nominal value. Long-term liabilities are dis- manager magazin Verlagsgesellschaft mbH, Hamburg 24,9 % for sale. counted. Liabilities in foreign currencies are normally translated at the SPIEGEL-Verlag Rudolf Augstein GmbH & Co.KG, Hamburg 24,75 % Securities available for sale are valued in accordance with IAS 39 at their exchange rate applying on balance sheet closing date. Vereinigte Motor-Verlage GmbH & Co.KG, Stuttgart 17,14 % as of April 1, 2004 fair market value on balance sheet closing date if this can be determined. Any resulting profit or loss is added or charged to earnings. In cases where unscheduled amortization has been charged on grounds which FINANCIAL DERIVATIVES no longer apply, the assets are written up again. In cases where it is In accordance with IAS 39, all financial derivatives are carried in the bal- impossible to determine a fair market value, the relevant shareholdings ance sheet at market value. These financial instruments are taken up in and securities are carried at their ongoing historical acquisition cost. the balance sheet at the date on which the transaction was made and SUPERVISORY BOARD EXECUTIVE BOARD classified separately as either fair value or cash flow hedges. Individual derivatives do not meet the requirements of IAS 39 for capitalization as Dr. Gunter Thielen, Gütersloh, Chairman (since 10/30/2003) Dr. Bernd Kundrun INVENTORIES covering transactions even though they do provide financial security. Gerd Schulte-Hillen, Hamburg, Chairman (until 10/30/2003) President and CEO Inventories are carried at the lower of acquisition or manufacturing Changes in market value of financial derivatives are handled as follows: Klaus Unger, Hamburg, Deputy Chairman Dr. Bernd Buchholz cost or market value. Manufacturing cost includes material and direct Birgit Breuel, Hamburg President Magazine Division Germany manufacturing costs plus manufacturing overheads attributable to the FAIR VALUE HEDGES Dr. Jochen Frangen, Hamburg Axel Ganz relevant production process. In cases where acquisition or manufactu- Changes in market value of these derivatives used as hedges for assets Dorit Harz-Meyn, Hamburg President Magazine Division France and USA ring cost is higher than market value on balance sheet closing date, the and liabilities are included in the income statement and reflected in the Dr. Tessen von Heydebreck, Frankfurt/Main Angelika Jahr-Stilcken relevant inventory items are written down to net realizable value. contra movements in the balance sheet items covered by them. Klaus Hillmer, Itzehoe Member of the Executive Board, Journalism Inventories are normally carried at acquisition or manufacturing cost. Bernd Köhler, Dresden Dr. Torsten-Jörn Klein Identical inventory items are valued at either average cost or on a FIFO CASH FLOW HEDGES Dr. Siegfried Luther, Gütersloh President Magazine Division International (first in first out) basis. Changes in the current value of these derivatives used as hedges to Rolf Schmidt-Holtz, Gütersloh Dr. Martin Schuster secure future cash flow are included in other comprehensive income John Vinocur, Paris Member of the Executive Board, Central Services and do not affect earnings. These items are written back against the Michael Walter, Hamburg Martin Stahel earnings on the transactions covered by them. RECEIVABLES Member of the Executive Board, Corporate Development Miscellaneous receivables and other assets are normally carried at the Achim Twardy lower of nominal or current market value. Long-term receivables are President Newspaper Division/Business Press Germany discounted. Receivables denominated in foreign currencies are trans- AUDIT CERTIFICATE lated at the exchange rates applying on balance sheet closing date. The auditors have issued a certificate for the present global annual Due provision is made for any discernible risks. financial statements of the Gruner + Jahr Group. as of January 1, 2004 78 GRUNER + JAHR I ANNUAL REPORT 2003 CHRONICLE I GRUNER + JAHR 79

CHRONICLE 1948 – 2003

1948: When the first edition of STERN is pub- 1976: G+J takes a 33.3 percent participation in as various radio broadcasters. FEMME ACTUELLE is the Hamburg waterfront. The G+J Board of Manage- lished by the Henri Nannen GmbH publishing house Lübeck publishing house Ehrlich & Sohn KG (FRAU launched in France. ment cements its environmental awareness as a on August 1, with a printed circulation of 130,735 co- IM SPIEGEL). Bertelsmann AG takes over the five basic corporate principle. pies, the Federal Republic of Germany has not yet percent holding from Ernst Naumann and now holds 1985: G+J plans the construction of a new pub- been founded. Printed circulation reaches its high- a total of 74.9 percent of the shares.GEO appears with lishing building at Baumwall in Hamburg. The Ehrlich 1991: The newspaper business is expanded furt- point in 1980 with 2,021,115 copies. an initial circulation of 100,000 copies. The printed cir- & Sohn publishing house is taken over 100 percent. her: The Berliner Verlag is taken over as a part of a culation reaches its highpoint in 1996 with 783,386. G+J acquires a 24.9 percent participation in the Man- joint venture. The BERLINER ZEITUNG, BERLINER 1965: The newspaper publishers John Jahr ager Magazin Verlagsgesellschaft (manager magazin) KURIER, WOCHENPOST and the television guide F.F. (CONSTANZE, BRIGITTE, SCHÖNER WOHNEN, 1978: G+J is the first German publishing house publishing company. SCHÖNER ESSEN and FLORA are launched. G+J also acquires the majority of CAPITAL) and Dr. Gerd Bucerius (STERN, Die Zeit, to enter the international magazine market by taking join the range of magazines. G+J founds Gruner + Dresdner Druck- und Verlagshaus, where the SÄCH- among others) merge with the printer Richard Gruner over Cosmos Distribuidora S.A. publishing house Jahr of the U.K. in London. SISCHE ZEITUNG is published, as well as a 27.5 per- Germany, 1979 Germany, 1948 (Gruner & Sohn, Gruner Druck GmbH) to become (DUNIA, SER PADRES HOY) in Spain.G+J acquires cent participation in the Druckhaus Friedrichshain Gruner + Jahr GmbH & Co. Gruner holds 39.5 per- the Parents Magazine Enterprises Inc. publishing 1986: With the purchase of the HAMBURGER printers. Furthermore, G+J begins activity in the cent, Jahr 32.25 percent and Bucerius 28.25 percent house with the PARENTS and YM magazines in the MORGENPOST, a successful foray is made into the metropolitan areas of East Germany. The original of the shares. USA. The popular science magazine P.M. developed newspaper business. Using the same basic concept East German magazine NEUES WOHNEN appears by Gerhard Peter Moosleitner is launched in Ger- as the French magazine, PRIMA is exported to in former West Germany as well. Directly after its 1969: Richard Gruner sells his shares. The owner- many.The G+J School for Journalists is founded in Germany and England. TÉLÉ LOISIRS is launched in launch in France, CAPITAL becomes market leader ship structure of the publishing house is reorganized: Hamburg. In 1984, on the occasion of the 70th birth- France. The women’s magazine MIA is launched in among business publications. Jahr and Bucerius each hold 37.5 percent. Reinhard day of the founder of STERN, it is renamed the Hen- Spain. Through Ufa, G+J takes a participation in Mohn (Bertelsmann) participates with 25 percent. ri Nannen School. Radio Hamburg, one of the first private radio stations 1992: G+J takes over the remaining 50 percent Gruner + Jahr takes over 90 percent of the Munich in Germany. of the Berliner Verlag and increases its participa- publishing house, Kindler & Schiermeyer (JASMIN, 1979: G+J purchases the gravure and offset tion in Druckhaus Friedrichshain to 55 percent. The ELTERN, TWEN). The remaining 10 percent stays printer Brown Printing Company in Waseca, Min- 1987: Purchase of the California-based printer Ri- LEIPZIGER MORGENPOST is launched.The popular with the Owner-Manager, Ernst Naumann, who ex- nesota, USA. The French edition of GEO is launched verside County Publishing Company by the G+J sub- science magazine FOCUS appears in Italy and Great changes it later for five percent of G+J shares. in Paris by the Participations Edition Presse S.A. sidiary Brown Printing Company. SPORTS (later Britain, and quickly becomes the largest monthly publishing house (later Prisma Presse S.N.C.), SPORTS LIFE) and GEO WISSEN come onto the popular magazine in Italy. 1971: G+J takes a 24.75 percent participation in which was founded in 1978. HÄUSER and ART are market in Germany. G+J launches the women’s the Spiegel publishing house (Der Spiegel). John launched in Germany. magazine BEST in Great Britain and the celebrity 1993: G+J Polska is founded with its head- Jahr (born in 1900) and Dr. Gerd Bucerius (born in magazine VOICI in France. GEO appears at the news- quarters in Warsaw. The women’s magazine CLAU- 1906) withdraw from active management of the 1980: The business magazine IMPULSE comes stands in Spain as well. DIA appears on the Polish market. G+J acquires Germany, 1965 France, 1984 business. BRIGITTE reaches a paid circulation of 1.4 onto the market. a 49 percent holding in Nice Presse Invest (NPI), million and becomes the largest women’s magazine 1989: G+J founds an Italian subsidiary in Milan. which publishes the daily newspapers DÉLMAG- in Europe. 1981: GEO gets an offspring: GEO SPECIAL, a The travel magazine GEO SAISON is brought onto YARORSZÁG and DÉLVILÁG in Hungary through a magazine dedicated to travel. After the successful the market in Germany. On November 16, one week subsidiary company. The prominent celebrity mag- 1972: G+J acquires 15 percent of Vereinigte launch of GEO in France, G+J brings a magazine on- after the fall of the wall, the special edition of STERN azine GALA is launched in France. G+J participates Motor-Verlage GmbH & Co. KG (Auto, Motor, Sport). to the French market based on the concept of P.M.: “Germany – Borderless Joy” with photos of the peace- with 50 percent in the Spanish editions of MARIE Gruner + Jahr GmbH & Co. becomes Druck- und the monthly magazine ÇA M’INTÉRESSE. Spain also ful revolution in East Germany appears. Massive sales CLAIRE and LA CASA DE MARIE CLAIRE. Verlagshaus Gruner + Jahr AG & Co. The first edi- gets interested in popular science and successfully are made, especially in East Germany. tion of the monthly magazine ESSEN & TRINKEN launches MUY INTERESANTE. 1994: The G+J participation in the Druckhaus appears. 1990: Start of the CHEMNITZER, DRESDNER Friedrichshain printing facility is raised to 100 percent. 1982: PRIMA, the newly launched women’s and MECKLENBURGER MORGENPOST. G+J The celebrity magazine GALA, the info magazine 1973: Bucerius exchanges his shares in G+J magazine in France reaches a paid circulation of launches the women’s magazine VERA in Italy under TANGO and the television guide TV TODAY are against shares in Bertelsmann AG, which becomes one million copies within one year. a joint venture with Mondadori, the Milanese publish- launched in Germany. G+J takes over the investment the majority shareholder of G+J with 60 percent. ing house. G+J brings the German MARIE CLAIRE magazine BÖRSE ONLINE. G+J acquires seven John Jahr (35 percent) and Ernst Naumann (five per- 1984: Entry into electronic media with a 50-per- onto the market in a joint venture with Marie Claire women’s magazines from the New York Times Com- cent) hold the remaining shares. cent participation in Ufa-Film- und Fernseh-GmbH. Album.G+J España receives the license for the pany in America, including FAMILY CIRCLE and Mc During the course of the year, G+J thereby becomes Spanish edition of COSMOPOLITAN. The STERN-TV CALL’s. The women’s magazine NAJ comes onto the 1975: John Jahr sells 9.9 percent of his shares a partner of the private television broadcasters RTL, magazine is launched at RTL, the private broadcaster. market in Poland. G+J takes a 51 percent participa- Germany, 1975 to Bertelsmann AG and retains 25.1 percent. RTL2 and VOX, the pay TV program Premiere as well G+J moves into the Press Building at Baumwall on tion in the Slovakian daily newspaper NOV´Y ˇCAS. Spain, 1990 80 GRUNER + JAHR I ANNUAL REPORT 2003 CHRONICLE I GRUNER + JAHR 81

1995: BRIGITTE YOUNG MISS, which has been as well: CAR & MOTOR. With a 75 percent participa- 2001: G+J USA Publishing advances into the sold to the Georg von Holtzbrinck publishing group. published as a special edition since1990, appears as tion in the Vienna NEWS Group (NEWS, TV MEDIA), ranks of the top five magazine publishers in the USA A number of G+J titles celebrate anniversaries in an independent magazine. LEIPZIGER MORGEN- entry into the Austrian market is successful. FORMAT, through the purchase of the FAST COMPANY and 2002. In Germany, CAPITAL 40 and ESSEN & TRIN- POST and TANGO are dropped. 75 percent shares of the third magazine from the NEWS Group, follows in INC business magazines as well as the relaunch of KEN notch up their 30th anniversary. In France, VSD both SPORTS LIFE and WOCHENPOST are sold. the fall. The G+J business press is complemented by almost all other magazines. The internationalization of reaches its 25th and VOICI its 15th birthday, whilst With geo.de, mopo.de, pm-magazin.de, stern.de and BIZZ, the business magazine for a younger clientele. successful magazines is continued with GALA in Po- FOCUS in Italy is ten years old this year. tvtoday.de, G+J starts its first online magazines and The Newspaper Division is expanded through a 50 per- land and Russia and NATIONAL GEOGRAPHIC in Hun- becomes one of the first professional providers on cent participation in Expres, the Bucharest publishing gary. After its merger with the Kurier Group and the 2003: G+J offshoot Prisma Presse launches TÉ- the German language Internet. The management house. Expres publishes the national daily shopping start of the WOMAN women’s magazine, the NEWS LÉ 2 SEMAINES, a brand-new, fortnightly TV listings magazine L’ESSENTIEL DU MANAGEMENT is newspaper called EVENIMENTUL ZILEI. ELTERN publishing group publishes 14 magazines in Austria. magazine and the first of its kind on the French mar- Germany, 1996 launched in France. The women’s magazine HALO goes online with ELTERN.DE, while EMS starts the GEOlino, the innovative children’s magazine from G+J, ket. Its innovative format reaps dividends within a Germany, 2002 and the cooking magazine MOJE GOTOWANIE daily newspaper search engine PAPERBALL.DE. The appears monthly from January 2001. GEO is 25 years matter of weeks as circulation rises swiftly to the 2 come onto the market in Poland. new newspaper printing facility at the Gruner + Jahr old. The jubilee exhibition “The earth from above” million mark.TÉLÉ 2 SEMAINES is one of the most Printing Center in Dresden starts operation. attracts 800,000 visitors. BRIGITTE WOMAN appears successful magazine start-ups of the past few dec- 1996: FOCUS is launched in Poland; ELTERN regularly four times a year. ades. The licensed title GLAMOUR becomes the FOR FAMILY and the children’s magazine GEOLINO, 1999: After 13 years, G+J sells the HAMBURGER most successful new magazine to hit the Polish mar- in Germany. The French G+J subsidiary Prisma Pres- MORGENPOST to two Hamburg media entrepre- 2002: October sees the launch of WOMAN, the ket in 2003. With circulation around 276,000 copies, se takes over the weekly glossy VSD. G+J Funk- und neurs. The GEO family continues to grow: GEO fortnightly women’s magazine, in Germany. A new it leaps to the top spot among quality magazines for Fernsehproduktions GmbH is founded. The Berlin EPOCHE, a history magazine, comes out. Under member of the STERN family, STERN SPEZIAL BIO- women. Two pilot issues of NEON are greeted with newspapers at G+J, BERLINER ZEITUNG, BERLIN- license from the National Geographic Society, G+J GRAPHIE / STERN BIOGRAPHY SPECIAL, is intro- enthusiasm by teenage and young adult audiences. ER KURIER, BERLINER ABENDBLATT and TIP, go brings the NATIONAL GEOGRAPHIC MAGAZINE duced in the summer. In France, the youth magazine The innovative magazine NEON is scheduled to ap- online at berlinonline.de. The Advertisement Division and complementary products onto the market in a GEO Ado enters the market. The second step toward pear eleven times a year from February 2004 on- starts G+J Communication Office, an Internet service joint venture with RBA, the Spanish publishing house. securing the Chinese magazine market is taken in the wards. In November 2003, NATIONAL GEOGRAPH- for advertising customers. The magazine printing The magazine, which reaches the newsstands in six form of FUMU PARENTS. Dwindling prospects for IC WORLD is launched as a bilingual, popular science facility at the Gruner + Jahr Printing Center in Dres- countries in French, German and Polish, is an isntant BIZZ and ONLINE TODAY result in them being with- magazine for children, in print, TV and online formats. den and the new newspaper printing facility in Ber- success. Prisma Presse opens a new magazine seg- drawn in Germany, with ROSIE and HOME STYLE G+J’s expansion in the general knowledge segment lin-Lichtenberg begin operation. Operations at Druck- ment in France with the Internet magazine WEB meeting a similar fate in the United States. German- continues with the launch of GEOFOCUS in Russia. haus Friedrichshain are stopped. MAGAZINE. The Internet travel agency TRAVEL- y’s FINANCIAL TIMES DEUTSCHLAND is the only For strategic reasons, Gruner + Jahr sells its news- CHANNEL.DE is launched. YOUNG MISS, ART and national daily newspaper to increase circulation fig- paper interests in Eastern Europe to the Swiss pub- Germany, 2000 1997: Electronic Media Service GmbH (EMS) NATIONAL GEOGRAPHIC go online. ures.The company’s Berlin newspaper activities are lisher Ringier, effective December 31, 2003. France, 2003 starts the German-language search engine FIRE- BALL.DE, while BRIGITTE also goes online. The on- 2000: In a Joint Venture with the London media line television guide TV TODAY ONLINE+ COM- group Pearson, G+J launches FINANCIAL TIMES PUTER (ONLINE TODAY now) comes onto the DEUTSCHLAND . This is the first relaunch of an inter- market in Germany. The US printing facilities, the Ri- national daily newspaper in Germany for several dec- MASTHEAD verside County Publishing Company in California and ades.E-MEDIA set a new trend in the Austrian Inter- the Brown Printing Division in Kentucky, are sold. As net magazine segment . The International Magazine Publisher: Photography: Printing: a countermove, Brown Printing acquires the Penn- Division starts three new magazines: the business Gruner + Jahr AG & Co. KG Dirk Stewen, Hamburg Appl Druck GmbH & Co. KG Well and Graftek printing facilities in Woodstock, magazine CAPITAL in Spain, the technology-oriented Corporate Communications Senefelderstraße 3-11 which specialize in printing technical magazines. consumer magazine JACK in Italy and NATIONAL Am Baumwall 11 Design and Layout: 86650 Wemding GEOGRAPHIC in the Netherlands. Activities in the 20459 Hamburg Büro Hamburg 1998: G+J brings the women’s magazine English-speaking world are focused on the USA: G+J [email protected] Other Pictures: GRACJA to the newsstands and takes over the successfully enters the American business magazine Realization: Andreas Teichmann (p.6); Jason Todd weekly magazine MOJE MIESZKANIE in Poland. segment by acquiring INC and FAST COMPANY. Copy: G+J Corporate Media GmbH (p. 28); Karin Rocholl (p. 42, 47); Grund TOP GIRL, a magazine for girls and young women, G+J withdraws from the British market for strategic Stefan Michalk, Griegstaße 75 und Flum (p. 43-44, 46, 48-50); Andreas follows in Italy. The weekly celebrity magazine ALLO reasons. With the LIVING AT HOME magazine and Kurt Otto 22763 Hamburg Fechner (p. 51); Meffert/ Stern (p. 52-55); appears in France. GEO, already a successful maga- an Internet portal of the same name, G+J starts an Archiv Gruner + Jahr (p. 63-65); Frank zine in Germany, France and Spain, is launched in Rus- integrated multimedia platform focused on home, Final editor: Litho: Richter (p. 56); Odile Hain (p. 58, 60); Poland, 2001 sia. G+J brings a magazine onto the market in China garden, kitchen and hospitality. and hos Thomas Huber p.r.o. medien mauritius (p. 65); 82 GRUNER + JAHR I ANNUAL REPORT 2003

WORLDWIDE PRESENCE A staff of over 11,000 produces more than 110 magazines and newspapers in 10 countries on three continents

G+J Headquarters, Hamburg

G+J Poland, G+J Russia, G+J China, Warsaw Moscow Beijing

Verlagsgruppe News, Vienna

G+J/Mondadori, Milan

G+J Netherlands, Amsterdam

G+J USA, Prisma Presse, New York Paris

G+J Spain, Madrid