At a Glance Contents

Te soul and spirit of the company LEADING Striking New Paths 04 The three Segments of the Company 07 is journalism. Increasingly Digital 08 Increasingly International 10 Many Opportunities for Future United Artists 12 OUR MISSION: Te successful establishment of There’s More To It 14 Corporate Values and Leadership Principles 15 independent journalism in the digital world.

DIGITAL We are Europe’s leading digital publisher. Building Blocks of Digitization 16 Multimedial Media Brands 18 Digital Development Laboratory 20 Silicon Valley and More 21

PUBLISHER House of Journalism 22 “What we are and what we want” 23 Essentially Free 24

MEDIA AND BRANDS Diversity of Offerings 26 Status: March 2018 Classifeds Media 28 Axel Springer SE, Corporate Communications, 10888 32 Tel: +49 30 2591-77600, [email protected] Marketing Media 34 www.axelspringer.com www.twitter.com/axelspringer_en www.youtube.com/axelspringer FACTS AND FIGURES 36 www.instagram.com/axelspringer_se www.facebook.com/AxelSpringerKarriere Striking New Paths LEADING DIGITAL PUBLISHER

Enhancement. Growth. At the same time not losing the own roots.

In the tradition of its founder, who brands, its own new developments and fostered journalistic and technological strategically-oriented acquisitions of innovations in his time, Axel Springer SE web companies, the networking with is breaking new ground while remaining the current generation of digital founders true to itself. The company is with great is one of the building blocks of the pace pursuing the objective of building company’s digitization strategy. up a fast-growing and proftable digital portfolio and to establish journalism as About 16,000 employees work with a successful business model also in the passion at Axel Springer SE: Eu- digital world. Along with the transfor- rope’s leading digital publisher. mation of its established strong media

04 05 Strategy Te Tree Segments of the Company

Axel Springer SE is shaping its transformation into The traditional revenues of a house are a digital publishing house with all its strength. refected in this structure. In the same way as a The strategy focuses on what the company has in the past was fnanced by subscrib- made successful ever since. Models which are, ers, advertisers and classifed custom- Classifeds Media, whose with varying intensity, based on journalism or bene- ers. It is the goal of Axel Springer SE to become revenues are primarily generated ft from journalism: Classifeds Media, News Media, the number one in the respective market segments through paying classifed ad clients. and Marketing Media. and in the countries in which the company is active – as leading digital publisher. 1

News Media, that are predominantly funded by paying readers and adver- 2 tising.

Marketing Media, whose revenues are primarily generated by reach-based or performance- 3 based advertising clients.

06 07 Share of DIGITAL MEDIA in percent

Increasingly Digital OF TOTAL GROUP REVENUES

Axel Springer is pursuing a strategy of proftable ment of paid content on the Internet and expands growth. The goal is to create value – both its portfolio of online services through complemen- 72 material and ethical. And thereby also to increase tary acquisitions. OF ADJ. EBITDA the company’s value. More information is available at The company pushes forcefully ahead with its axelspringer.com/keyfgures transformation to become the world’s leading digital publisher. The group invests in the develop- 80

OF ADVERTISING REVENUES 2 42 28 87

Share of Segment Revenues in percent Employees News Media 28 Classifeds Media Average number 2016 2017 Change Marketing Media Group 15,223 15,836 +3.3% Services/Holding

08 Source: Annual Report 2017 09 Increasingly International

Axel Springer is active in more than 40 countries The US online business news portal BUSINESS worldwide, with holdings and licenses on six INSIDER offers 16 further regional editions, the continents. latest in Spain and South Africa.

With the Swiss Ringier AG, Axel Springer operates 2017, Axel Springer SE generated a total of 49 too Joint Ventures: in Switzerland and in Eastern percent of its revenues outside with Europe (Poland, Serbia, Hungary and Slovakia). these and other activities

Digitization is moreover increasingly breaking down More information is available at the conventional view of national boundaries. Over axelspringer.com/intl and the last few years for example, Bonial (see p.34) ringieraxelspringer.com has successfully established the German kaufDA concept in ten other countries. The StepStone Group (see p.36), operates job portals in 16 countries.

10 11 Many Opportunities for Future United Artists

Axel Springer is a company, in which individual- JUNIOR EXECUTIVE PROGRAM SCHOOL OF JOURNALISM EDITORIAL OR COMMERCIAL ists feel at ease, because they have the freedom This 18 month program offers a variety of individual The Axel Springer Akademie, Germany’s most INTERNSHIP to make their own decisions and to shape things stations and provides participants with what it progressive school of journalism, teaches the craft Axel Springer offers a four-week editorial intern- independently. A kind of „United Artists“. Artists – takes for a responsible career as a media manager. of journalism from scratch within two years: The ship or a three to six-month commercial internship irrespective of whether they are reporters or soft- The program is aimed at people who have focus is on cross-media training and investigative for those who want to gain insights into everyday ware developers – are independent, different and completed their studies outstandingly well, research methods. working life as soon as possible. sometimes complicated. They may and should be widened their horizons with periods spent abroad More information at like this, as long as they are excellent and, when it and have gathered between three and four years www.axel-springer-akademie.de matters, hold together – United. of successful professional experience – not necessarily in the media industry. COMMERCIAL AND TECHNICAL CAREER OPPORTUNITIES VOCATIONAL TRAINING DIRECT ENTRY BESTSELLER PROGRAM Whether media manager or designer, IT special- For employees who want to develop their ideas. Within the framework of the 14-month BestSeller ist or industrial business management assistant: Personalities, who bring others forward and want program the participants learn everything a apprentices at Axel Springer are able to learn to to make progress themselves. People who want modern cross-media sales professional needs do the various tasks required in one of the most to help shape changes. No matter whether they to know. exciting companies in the digital and publishing already have in-depth media experience or are industry. making a lateral career move. TOP TALENT PROGRAM In this group-wide, international development pro- DUAL COURSE OF STUDY TRAINEE PROGRAM gram aimed at targeted promotion of young talent Through the dual study program, interested Axel Springer is preparing graduates to take on with leadership potential, participants grapple 18 students can acquire the degree of Bachelor specialist and management responsibility. As part months with the latest models of competitive stra- of Science in Business Information Systems or of the 18-month Trainee Program, participants will tegy and the challenges of digital transformation, Bachelor of Arts in Business Administration/Media get to know the wide variety of departments and among other topics. and Communications in three years. They gain work on complex tasks: for both analog and digital practical media know-how at Axel Springer while More information on vacancies, career opportuni- media, whether online or mobile, national developing their academic knowledge at partner ties and contacts can be found at or international. universities. career.axelspringer.com/en

12 13 Tere’s More To It Corporate Values and

Making a career depends on many factors. In Axel Springer SE is active in a dynamic industry, at Leadership Principles addition to your own abilities and skills there are the same time deploying a great deal of pioneering frequently enough external factors to consider – can spirit to promote innovation. In order to keep that Axel Springer SE adheres to the following principles, I balance my profession with my family life? Will my one step ahead, employees are offered an excel- which determine how work is carried out in the com- employer support me? We have laid a lot of the lent further training program, ranging from app pany and how employees interact with each other: groundwork at Axel Springer in recent years. development to online marketing and advanced business management seminars right up to agile Creativity as the decisive prerequisite for success It goes without saying for Axel Springer that along- management, negotiation techniques and mentoring in all segments; side work the family is also very important. This ex- by experienced managers. plains why the company has a day nursery in close Entrepreneurial spirit, defned as imaginative, proximity, the Wolkenzwerge (“Cloud Dwarfs”) in Through targeted health management Axel responsible and result-oriented action taken by all Berlin. In addition, an emergency childcare service Springer SE helps its employees preventively keep employees; and assistance with the care and support of depen- ft. For example, through collaborations with gyms, dent relatives is offered. back training courses, days of action offering free Integrity towards the company, readers, cus- health check-ups, yoga courses or cooking work- tomers, employees, business associates and The Chancen:gleich! (“equal:opportunities!”) shops. shareholders. project aims to double the number of women in leadership positions to over 30 percent. As at 31 More information is available at December 2017, the proportion had reached 32 axelspringer.com/career percent across the group. The overall objective of the initiative: to also refect the diversity of readers and users in balanced leadership teams.

14 15 The transformation of the publishers’ own strong media brands: Many print Building Blocks titles have long established a frm place for their mobile, online or app versions in of Digitization people’s daily information fow.

The development and expansion of its digital ac- 1 tivities is the core of Axel Springer SE’s corporate orientation. Axel Springer SE is shaping the this Investments in its own digital new devel- through targeted activities in the following four opments to suit a wide range of interests areas. 2 and information needs.

Strategic acquisitions, which complement and expand the existing range of products and services in the Classifeds Media, News 3 Media and Marketing Media. Axel Springer is further promoting the net- working with young, creative, pioneer- ing companies – creating platforms for the exchange of ideas and experience, support- ing them through start-up funding as well as 4 with technology and know-how.

16 17 Multimedial Media Brands

Be it online or on paper: Today, stories are above has launched new subscription models all are told using multimedia, and are thus adapted of their digital offerings and a payment model for to refect changes in readers’ usage behavior. Axel the site welt.de already at the end of 2012. Springer is a pioneer in Germany, developing busi- has started a paid content model on bild.de in ness models for journalism in the digital world. For 2013. At the beginning of 2018*, DIE WELT re- professional quality journalism costs money, and corded 79,500 digital subscribers, BILD 384,700. the independence of journalism is strengthened if it is not fnanced by advertising alone. The successes of Axel Springer’s media brands in the digital world show: Well-made paid news Axel Springer already began to establish paid services work, if the content is attractive and the journalistic content on the stationary and mobile payment process is user-friendly. Internet back in 2009. Paid services were initially introduced on smartphones and tablets. The speed of implementation and innovative strength at Axel Springer paid off here as well: This is why the frst German iPad app came from DIE WELT. The BILD HD app is regularly at the top of the rankings among the best-selling apps in Apple’s iTunes Store and ’s Android Store.

18 *Source: IVW Paid Content 01/2018 19 Digital Development Silicon Valley and more

Laboratory Axel Springer Digital Ventures and Porsche Digital are building a joint start-up accelerator Axel Springer has had a permanent representa- Axel Springer transformes not only the existing UPDAY is a platform for news content, both ag- in Berlin. Together, the two companies want to tive offce in Silicon Valley since 2014. The rep- media brands in the digital world, but also creates gregated and curated, which was developed by support digital business ideas with high market po- resentative offce was set up in Palo Alto in order entirely new brands and reading experiences in the Axel Springer for Samsung devices. UPDAY is pre- tential and invest in start-ups in the start-up phase. to sound out investment options in strategically web. Some of the recent digital developments the installed as a news service on the “Galaxy S7” and In addition to fnancial support, the accelerator relevant start-ups and early-stage funds on-site. lifestyle platforms ftbook.de, and noizz as well as “S7 edge” devices for customers in 16 European also provides young companies with access to an At the same time, existing contacts and connec- well as foodbarn. markets, Germany, France, Great Britain, Poland, extensive network and training and development tions of Axel Springer SE in Silicon Valley are to be Spain and Italy, among others. opportunities. Snap Inc. could be won as a further further developed and relevant business models To enable readers to fnd offerings, digital distri- partner. and technologies identifed for Axel Springer. bution platforms make sense. In the iKiosk, in UPDAY provides users with two types of content: The New York representative offce which addition to the Axel Springer SE titles, more than “Need to Know” information, which is selected by Launched in 2013, the Axel Springer Plug and opened in 2016 is the headquarters for Axel 350 publications from more than 55 publishers are a local market editorial team; and “Want to Know” Play accelerator, a joint venture between Axel Springer’s US activities. offered here in the meantime. information, an algorithm-based service tailored to Springer Digital Ventures and the Plug and Play ikiosk.de customers’ individual interests. Tech Center, will focus on further growth of the A further building block of the networking strategy existing over 100 portfolio companies. is Project A Ventures, in which Axel Springer has and support for new fnancing rounds and the a share. The company specializes in the fnance subsequent exits. and establishment of start-ups in the felds of Inter- net, mobile and technologies. More information at www.projectaventures.com axelspringerplugandplay.com

20 21 Te Family Grows

Axel Springer is growing under its own steam and The news platform UPDAY also goes online in The @Leisure Group, one of the leading opera- The European edition of POLITICO, a joint venture is additionally buying companies to accelerate its Spain and Italy. This means that UPDAY is now tors of online rental portals for holiday homes between POLITICO and Axel Springer, is further growth in the digital world: represented in six European markets and has in Europe and part of the Axel Springer family, expanding its fee-based real-time news service become a European news platform with editorial acquired a majority stake in Traum-Ferienwoh- for political experts and has included seven policy In 2016, Axel Springer has acquired the New York- teams in each country producing high quality and nungen GmbH in 2016. Through this acquisi- areas in this service within one year, for example based company eMarketer Inc., a leading pro- editorially independent . By mid- tion the @Leisure Group is extending its range of “Transport”. Other policy areas are to follow. vider of data and economic analyses for the digital 2017, this service will be extended to a total of 16 services in the holiday home industry: from its full- economy. The transaction is another milestone in countries in Europe. service provider Belvilla to the booking platform Following its success in Poland, Serbia and the strategy of growing through digital activities in Casamundo up to the online marketplace Traum- Slovakia, NOIZZ is launching in Germany as a co- the English-speaking world – especially in the US Following its acquisition of , Ferienwohnungen (dream holiday apartments), operation between BILD and Ringier Axel Springer market. With the takeover, Axel Springer is also the Axel Springer family is supporting the inter- all types of offers for booking holiday homes and Media. NOIZZ reports in a contemporary, personal strengthening its position with regard to business national expansion of the online business portal. apartments are now united under one roof. and surprising way about everything that moves news and information. BUSINESS INSIDER is represented on the Internet its urban and digitally networked target group: with 15 country editions in the meantime. Within In addition, through the acquisition of Land & from fashion and lifestyle to street art and hip hop Axel Springer incorporated its US media holdings the Axel Springer corporate group, BUSINESS IN- Leisure A/S and its brands DanCenter and Dan- through to politics and society. in Thrillist (a life style medium for “millennials”) SIDER is also cooperating with fnanzen.net to of- land, the @Leisure Group has extended its range and NowThis Media (a social-video-news media fer MARKETS INSIDER: real-time fnancial market of holiday homes and holiday park accommoda- company) into a new company, Group Nine data and business news for the digital generation, tion in Denmark, Sweden, Norway and Germany. Media, with its headquarters in New York. Group including up-to-date information from almost one Nine Media also includes The Dodo (a digital hundred stock exchanges around the world. service focusing on the interests of animal lovers) and Seeker (Discovery Communications’ digital network for adventure and discovery stories). In this way Axel Springer holds shares in one of the largest digital media companies.

22 23 House of Journalism “What we are and what we want”

The self-conception of Axel Springer SE is summa- 1 We are and will remain a publishing house, a house of journalism rized in a policy paper – the so-called “Axel Springer homepage”. It defnes what Axel Springer is and 2 We want to inform, advise and entertain our readers independently wants. and better than others More information at axelspringer.com/home-page 3 We are and we want to be economically successful

4 We are actively shaping digitization and see this as our great opportunity

5 We do what we do with passion and are constantly striving to

become even better

6 We attract individualists and really promote them

7 We are strengthening freedom, democracy and open minds

24 25 We stand up for freedom, the rule of law, democracy Essentially Free and a united Europe.

Media companies have societal responsibility in a It was Axel Springer himself, who fxed in writing the democracy, because they shape the way their read- idea of freedom as the most important value and the 1 ers, listeners, viewers, and users form their opinions. safeguarding thereof as the objective of his com- This is why Axel Springer is the only independent pany: The Essentials derived from the commitment publishing house to have had a corporate constitu- to freedom have been part of the company’s articles We support the Jewish people tion through the Essentials since 1967, to ensure it of association as well as the contracts with the and the right of existence of takes account of this responsibility in a transparent journalists in Germany, and have characterized Axel the State of Israel. manner. Springer ever since. In conjunction with the German version, an international version of the Essentials, 2 More information is available at introduced in March 2016, also unites all employees axelspringer.com/guidelines in all the companies belonging to Axel Springer in We demonstrate solidarity standing up for freedom. with the free values of the 3 United States of America.

We uphold the principles of a free market economy and 4 its social responsibility.

We reject political and 5 religious extremism. 26 27 MEDIA AND BRANDS

Diversity of Offerings 1. Classifieds Models 2. News Media 3. Marketing Media

A colorful and diverse media world has come WHAT? Business models whose revenues are WHAT? Business models that are predominantly WHAT? Business models whose revenues are together under the Axel Springer umbrella. The primarily generated through paying classifed ads funded by paying readers and advertising. The primarily generated by advertising clients in reach- company is market leader in the German-language customers. These include the online classifed ad News Media segment is divided into national and based or performance-based marketing. While print business and well positioned internationally. It portals such as SeLoger, Immonet, Immoweb. international offerings. Domestic offerings - the Reach-Based offerings include digital business is taking great strides in its transformation towards be, StepStone, Totaljobs, yad2, LaCentrale and tially cover all the activities of the BILD and WELT models such as idealo and kaufDA, Performance becoming an online publisher and is building up a meinestadt.de. Groups. International business comprises the Marketing covers the activities of the Awin Group. fast-growing and proftable digital portfolio. media offerings in Western and Eastern Europe. This also includes the Joint Ventures with Ringier Journalism is frmly interwoven in Axel Springer’s AG in Switzerland and Eastern Europe, as well as DNA. Beyond its journalistic services, there are BUSINESS INSIDER and POLITICO.eu. specialized online marketers as well as international advertising portals: Journalism, advertising, classi- WHY? We think it right that people want to WHY? We are of the opinion that people value WHY? We are convinced that advertising clients fed ads – these are the three core competencies in continue to fnd the right job, the most beautiful independent, informative and entertaining journa- only advertise in the way that is the most effcient print, and Axel Springer is transferring these three apartment and the safest car for themselves. It is lism and are also happy to pay for it! Whether print and most innovative in order to reach their custom- core competencies onto the Internet. our task to help them with their search. or digital. ers. The best ideas and tools are needed for this.

The media services are structured into the following segments:

28 29 Classifieds Media

Axel Springer has built up a portfolio of leading on- line classifed ad portals which are predominantly funded by job, real estate and auto advertising customers.

With StepStone, Axel Springer Axel Springer is market leader in is the market leader among pri- the online market for real estate vate job exchanges in Germany classifed advertising in France and Belgium, as well as being and Belgium with SeLoger Axel Springer added an impor- one of the leading providers in and Logic-Immo as well as tant portal for used cars to its Europe. StepStone’s Totaljobs Immoweb.be, respectively. Axel offerings with the acquisition of Group is the biggest online- Springer also operates immo- LaCentrale. yad2, the largest recruiting portal in the UK. net.de, one of the most popular Israeli classifeds portal, offering The Saongroup, which also real estate portals in Germany real estate, car and classifed belongs to StepStone, operates under the umbrella of immo- ads, also belonges to Axel job portals in 16 countries and welt.de. The holiday accommo- Springer. is the market leader in Ireland, dation rental provider @Leisure Northern Ireland and South rounds off the portfolio. @Leisure Finally, the regional portal Africa. The portfolio is supple- also includes other providers: meinestadt.de provides com- mented by the recent acquisi- Traum-Ferienwohnungen and prehensive information on more tions of Jobsite, a company the DanCenter and Danland than eleven thousand German operating in the Great Britain, portals. cities and communities, in ad- and the YourCareerGroup, dition to a vacancies and jobs which specializes in job adver- market and an online business tisements for hotels, restaurants directory service. and tourism in the German- speaking world.

30 31 News Media national

The diverse program for the German market includes digital media services as well as printed and magazines. Large, successful brand portfolios such as BILD or WELT make up Whether BILD, BILD am SONNTAG or BILD.de: Germany’s No. 1 media the lion’s share. brand is a part of everyday life for millions of people. Either as a printed newspaper, online or mobile with BILD Mobil.

Alongside numerous innovations in the print sector, successful WELT brand is now a multimedia news WeltN24 also has a leading role in many online organization for quality journalism. formats with its pioneering spirit. Through its merger with news channel N24, the

With AUTO BILD, SPORT BILD, FUSSBALL BILD, COMPUTER BILD and AUDIO VIDEO FOTO BILD, Axel Springer SE serves itssports-loving, car-loving and tech-savvy read- ership – in print, on the web and with apps.

Berlin scrolls, types or clicks its way through the various media offerings from B.Z. – the capital city‘s biggest and most traditional daily newspaper.

32 33 News Media national News Media international

Music and lifestyle, entertainment and current International business comprises the Axel Springer affairs: Axel Springer publishes its ROLLING SE media offerings in Western and Eastern Europe. STONE, MUSIKEXPRESS, METAL HAMMER and This also includes the Joint Ventures with Ringier DIE DAME titles with creativity and the highest AG in Switzerland and Eastern Europe as well as journalistic standards. BUSINESS INSIDER and the Joint Venture with POLITICO.

34 35 Marketing Media

This segment covers all those activities of Axel Springer SE which are predominantly funded by advertising customers.

Axel Springer owns idealo.de, kaufDA distributes retailers’ The Awin Group is the lead- Germany’s leading portal for digitized advertising brochures ing “Performance Advertising product search and price com- on the stationary and mobile Network for performance-based parisons, and fnanzen.net, the Internet – targeting the con- online marketing” in Germany fnance portal with the widest sumer’s immediate region. This and Europe and is also active in reach in Germany. allows advertisers to extend their the US with ShareASale. The traditional campaigns across the principle is simple: Awin displays full range of media and addition- its advertising clients’ adverts on ally exploit untapped customer its partners’ web pages, e.g. on potential. The concept has in the bloggers pages, and the adver- meantime been established in tiser only pays if a purchase is fve other countries through the actually made after clicking on Bonial International Group. the advert. kaufda.de awin.com bonial.com

36 37 FACTS AND FIGURES

TOTAL REVENUES: ADJ. EBITDA: € 3,532.7 million € 645.8 million

ANTEILE DER DIGITALEN MEDIEN … … OF TOTAL GROUP REVENUES … OF ADJ. EBITDA … OF ADVERTISING REVENUES

72% 80% 87%

EMPLOYEES:

15.836 ... OF WHICH 49 % ARE INTERNATIONAL

OPERATING GLOBALLY: IN MORE THAN 40 COUNTRIES

Source: Annual General Report 2017

38 39