Axel Springer acquires Business Insider Investor/Analyst Conference Call
Dr Mathias Döpfner, Chairman & CEO, Axel Springer SE Dr Julian Deutz, CFO, Axel Springer SE Henry Blodget, Founder, CEO & Editor-in-chief, Business Insider Inc.
New York, September 29, 2015 Disclaimer
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2 Acquisition of one of the leading digital business news offerings in the English-speaking world
Reach of 76 million global unique visitors with 1 strong growth momentum
Business Insider user base highly attractive for 2 advertising customers
Strong brand with potential for additional offerings 3 and further internationalization
3 Acquisition adds 63% audience and makes Axel Springer #6 digital publisher globally (reach-based)
Audience of international publisher peers (Global UVs in million estimate1, multi-platform, July 2015)
CBS 574 Hearst 237 Conde Nast 220 Time Inc. 215 HuffPo Media Group2 208 Axel Springer + Business Insider 199 Daily Mail 196 Comcast NBCUniversal 196 Turner Digital 185 Buzzfeed 174 Vice Media 164 News Corp.3 157 Gannett 142 BBC 141 Viacom 123 Axel Springer 122 The Guardian 106 New York Times 90 Vox Media 83 Business Insider 76 Telegraph 74 Washington Post 67 Forbes Digital 66 Bloomberg 52 Sources: comScore 1) Global desktop audience, projected to multi-platform based on the multi-platform/desktop ratio in the US market/ GER market for AS. Excl. any Chinese publishers, film production companies as well as telecommunications providers (e.g. AOL non-publishing, Deutsche Telekom) 2) Huffington Post Global, TechCrunch and Engadget (deduplicated) 3) Total of News Corp. Online, Dow Jones & Company and Fox News
4 Business Insider successfully follows proven business logic
1. Build-up of reach Global audience 2. Monetization Strong revenue growth 3. Profitability Breakeven 2015 before growth investments ()
5 Five things you need to know about Business Insider
. 76,400,000 global unique visitors . #1 business site in the United States . 60% of traffic from mobile devices . 39% of traffic from social networks . 2nd most shared business site on LinkedIn
6 Business Insider reaches more affluent readers than peers
Age breakout – US audience Audience with a household income of USD 100k+ (US multi-platform, August 2015) (UVs in million, US multi-platform, August 2015) % of total 18-24 yrs 21% audience BI 17.2 41% 25-34 yrs 29% Forbes 13.7 39%
35-44 yrs 16% 10.2 42%
45-54 yrs 14% 8.1 43%
55-64 yrs 11% IBT 5.8 38% QZ 2.1 36% 65+ yrs 6% FT 0.6 53% Business Insider with strong presence Business Insider reaches among millennials – 2/3 of audience more affluent readers below 44 years than its peers
Source: comScore
7 Business Insider is the largest business news website with 60% mobile traffic
Audience growth of leading English-speaking Audience by source business websites (in million UVs per month, USA) (Google Analytics, in % of visits)
Desktop
40%
60% Mobile
Source: comScore ; Note: Not including Yahoo! Finance as non-editorial content asset
8 The trend is your friend! Business Insider has embraced major digital trends in its favor
1 Mobile 60% of traffic
2 Social 39% of traffic
3 Programmatic 30% of ad revenues
9 Drivers for further growth through more…
Today Target
Business Insider (2007) …verticals Insider Tech Insider (Q1/16) (2015)
More business customers …subscribers Mostly retail customers for BI Intelligence Triple subscription revenues by 2018
US, UK New markets Licences in: India, China, Australia, …countries Singapore, Malaysia, Indonesia
10 Transaction overview
Business Insider profile Deal Terms . Founded 2007, based in New York . Acquisition of ~88% (total stake 97%)
. Leading business news website . Long-term equity incentive for Henry Blodget in the US (Founder, CEO & Editor-in-chief) and Julie Hansen (COO & President) . ~325 employees (~50% journalists ) . Based on 100%: purchase price of $442m . Axel Springer minority investor (~€395m) on the basis of a company with ~9% since January 2015 valuation (cash/debt free) of $390m (~€348m) . Transaction subject to approval by the relevant antitrust authorities . Closing envisaged in Q4/15
Financing . Existing credit facilities and additional term loan of up to €400m
. Leverage post transaction 2.2x
11 Revenue growth based on strong reach and successful monetization
Reach Growth Reach 2009 >80% (CAGR) 2014 Excellent monetization
Revenue growth of >70% (CAGR)
12 Ambitious targets for further growth and monetization
Revenue multiple of ~6x expected in 2016 – Revenues to grow >30% (CAGR) until 2020
Current P&L burdened by expansion – Breakeven envisaged by 2018
13 Our corporate mission
The leading digital publisher
14