Financial Statements 2017 Hubert Burda Media Holding Kommanditgesellschaft Content Five-Year Overview ......................................................................................................................................................................................................................................................................................................................................... 4 Group Management Report ............................................................................................................................................................................................................................................................................................................ 5 Group Fundamentals .............................................................................................................................................................................................................................................................................................................. 5 Economic Report .......................................................................................................................................................................................................................................................................................................................... 7 Overall economic and industry situation ......................................................................................................................................................................................................................... 7 Business development ................................................................................................................................................................................................................................................................................ 12 Sales development, net assets and financial situation ........................................................................................................................................................................... 27 Human Resources ..................................................................................................................................................................................................................................................................................................................... 29 Corporate Social Responsibility ......................................................................................................................................................................................................................................................................... 32 Environment and Sustainability ........................................................................................................................................................................................................................................................................... 33 Outlook, Opportunities and Risk Report ............................................................................................................................................................................................................................................. 34 Report on opportunities .............................................................................................................................................................................................................................................................................. 34 Risk report .......................................................................................................................................................................................................................................................................................................................... 36 Outlook .................................................................................................................................................................................................................................................................................................................................... 40 Consolidated Balance Sheet ........................................................................................................................................................................................................................................................................................................ 42 Notes to the Consolidated Financial Statements ..................................................................................................................................................................................................................................... 43 Development of Fixed Assets of the Group ........................................................................................................................................................................................................................................................ 56 Shareholdings ........................................................................................................................................................................................................................................................................................................................................................ 58 Financial Statements 2017 Hubert Burda Media The Management Board of Hubert Burda Media Left to right: Martin Weiss (International), Holger Eckstein (Finance), Philipp Welte (National Media Brands), Stefan Winners (National Digital Brands), Dr Paul-Bernhard Kallen (CEO), Dr Andreas Rittstieg (Legal and Compliance) 3 Financial Statements 2017 Hubert Burda Media Five-Year Overview 2013 2014 2015 2016 2017 in To tablecontents of To Operating performance 3,249 3,030 2,792 2,822 3,234 million € Consolidated sales 2,617 2,455 2,211 2,256 2,672 million € comprised of National Digital Brands 1,401 1,314 1,134 1,180 1,403 million € National Media Brands 630 649 651 661 670 million € International Media Brands 378 330 265 272 455 million € Printing 204 158 158 134 130 million € Other 4 4 3 9 14 million € Balance sheet total 1,551 1,518 1,510 1,566 1,874 million € Depreciation of fixed assets 83 91 85 80 125 million € Personnel expenses 499 527 543 535 657 million € Number of employees at year end 10,017 10,374 10,297 10,440 11,918 4 Financial Statements 2017 Hubert Burda Media Group Management Report Group Fundamentals tions (magazines and digital subscriptions such as Xing), 141 of which were in Germany and 111 outside of it. At the To tablecontents of To advertising, commissions, retail and printing. Burda con- end of the year, 11,918 individuals were employed in the siders itself an “enterprise for entrepreneurs” and is orga- Group. Hubert Burda Media (hereafter also referred to as “Burda”) nized with a decentralized profit center structure. This is a modern, internationally operating media company with structure offers Burda’s companies the necessary entre- In addition to a central holding and services division, Hubert a strong focus on technological innovation. Burda is con- preneurial leeway to grow successfully. At the same time, Burda Media is divided into four operational divisions: Na- centrating increasingly on platform businesses – in which a they can benefit from the size of the company as a whole tional Digital Brands, National Media Brands, International variety of changing business models operate on a specific in several cross-disciplinary areas and access Burda’s Media Brands and Printing. In fiscal year 2017, the Group’s thematic platform such as career, fashion, or living & gar- strong network to promote their own businesses. external sales reached €2.7 billion, and therefore, as pre- dening – with the goal of becoming a market leader or se- dicted, are significantly higher than the prior year. The curing that leading position through long-term growth. To Burda wants to do more than just keep pace with highly four operating divisions consistently pursued their growth achieve this goal, Burda invested heavily in innovation in dynamic changes in the media business: It wants to actively plans during the year. 2017 in its own companies as well as through acquisition of shape them itself. With this goal in mind, Burda is consis- participating interests in growing media and digital compa- tently strengthening technological and entrepreneurial The National Digital Brands division was able to achieve nies with sustainable business models. The objective of all skills in all operational business divisions, assisted by the strong growth overall (+18.9 percent). Xing and the two entrepreneurial activities is to win new markets and con- strong international networks that were created through e-commerce retailers Cyberport and Computeruniverse sumers, expand existing customer relationships through the world-renowned DLD conferences and other activities. were the most successful digital companies in 2017 in strong media brands and use them for additional offerings. terms of sales. The acquisition of HQ-Patronen GmbH One key prerequisite for Burda’s continued success lies during the year helped Cyberport strengthen its customer All of Burda’s products focus every day on consumers’ in the ability