At a Glance 2009 2009 Axel Springer AG At a Glance AT A GLANCE 2009 Contents The Company Brief Portrait 5 Principles and Guidelines 9 Corporate Strategy 11 Business Development 13 Employees 15 10 Reasons 21 Responsibility 25 Multimedia Journalism 29 Highlights 2008 40 Our Media 43 News 44 TV Information 50 Cars 52 Sports 54 Computers and Consumer Electronics 55 Business and Finance 56 Women 58 Lifestyle 60 Special Interest 62 Online Classified Advertising 66 Online Marketplaces 67 Online Portals 68 TV and Radio 72 International Activities 74 Offerings for Advertising Clients 91 Printing, Logistics and Distribution 95 Group Key Figures 97 3 The core of our business is not the printing of paper, but rather excellent journalism. Whether print, moving image or online: each medium follows its own laws, but each of them depends on the quality of the content. News, opinions, well told stories – that’s what it’s about in the future, and that’s what it was always about. We interlink the worlds, work in networks and cross-media. Our goal is clear: to become the best integrated and most customer-friendly media company in Europe. 4 AT A GLANCE 2009 Brief Portrait Established by the publisher of the same name in 1946, today Axel Springer is Germany’s largest newspaper and third-largest magazine publisher as well as one of the leading European media enterprises. The core competence of Axel Springer is excellent journalism: topical, informative and entertaining. The company creates and distributes information and entertainment through newspapers, magazines and digital media services. Its broad media portfolio encompasses successfully established multimedia brand families such as the BILD- and the WELT-Group. In addition, with over 170 newspapers and magazines, more than 60 online offerings for various different interest groups, as well as holdings in television and radio stations, the company is active today in 35 countries. 10,666 employees generated total revenues of 2,728.5m euros, EBITDA of 486.2m euros and net income of 571.1m euros in the 2008 fiscal year – record high in the company history. More detailed information on Axel Springer can be found on the Internet at www.axelspringer.com. 5 The company headquarters in Axel-Springer-Straße in Berlin “Building tall houses in this world has no value, without an idea that is greater than we are ourselves: Freedom for all Germans in a father- land with its rightful capital Berlin in the middle of a peaceful Europe.” Axel Springer in 1964 on transferring the company’s registered office from Hamburg to the then divided Berlin. 6 AT A GLANCE 2009 Media enterprise with On the way to becoming the most European importance customer-friendly media company Axel Springer has been a listed stock cor- in Europe poration since 1985. Its registered office is Axel Springer wants to remain Germany’s in Berlin. There are other important locations most creative and profitable publishing in Germany: in Hamburg and Munich as well house in future. That is why the company set as the printing facilities in Berlin-Spandau, itself the goal in 2006 of becoming Europe’s Hamburg-Ahrensburg and Essen-Kettwig. most customer-friendly media company by International activities in Eastern Europe are 2010 at the latest. Whether reader, online- centered on Poland, Hungary, Russia and user, ad vertising customer or inner-company the Czech Republic; in Western Europe on customer – customer orientation is the key Switzerland, France and Spain. to success. A unique corporate culture as the As one of the first steps Axel Springer set up key to profitable growth a central customer service hotline. Under In addition to strategic objectives, Axel the “Axel Springer 24 hour service” Springer has defined values to guide each which can be reached at 01805 6 300 employee in his or her work, and which 30*, readers, subscribers, user or advertising shape corporate culture at Axel Springer. customers can ask questions, make sug- Together these are the key to profitable gestions or point out unresolved problems growth. Three values form the foundation round the clock. of corporate culture at Axel Springer: * 14 cent/min from the German fixed network/ g Creativity as the crucial precondition mobile rates vary. National calls only. for journalistic and business success; g Entrepreneurial spirit made up of imaginative, responsible and result- oriented action taken by employees and management as well as g Integrity towards the company, readers, customers, employees, business associ- ates and shareholders. 7 “In my opinion, newspapers should have a share in politics but not make politics. The newspaper’s role is to follow political activity, to explain, to criticize and to promote it.” Axel Springer, 1966 8 AT A GLANCE 2009 Principles and Guidelines Axel Springer is the only independent media company to have a corporate constitution. The five principles expressed therein serve as a foundation for publishing operations. They define fundamental convictions on social policy, yet do not set out an opinion. The principles are supplemented by the guidelines for safeguarding journalistic independence at Axel Springer and an international catalogue of social standards (see p. 26). Corporate principles for a Guidelines for safeguarding journalistic liberal world view independence at Axel Springer The five socio-political corporate principles The editors-in-chief and publishing directors formulated by Axel Springer in 1967, of the company developed guidelines to amended following German reunification in safeguard journalistic independence at Axel 1990 and supplemented in 2001, form part Springer and introduced them in August of the company’s articles of association. 2003 in co-ordination with the Management They paint a liberal picture of the world: Board. 1. To uphold liberty and law in Germany, The guidelines specify and extend the a country belonging to the Western family company’s understanding of the publishing of nations, and to further the unification of principles of the press code of conduct issu- the peoples of Europe. ed by the German Press Council. 2. To promote the reconciliation of Jews and Germans and support the vital rights of Observance of the guidelines by all editors the State of Israel. in their journalistic endeavors safeguards the general conditions that make independent 3. To support the Transatlantic Alliance and and critical journalism possible. The editors- maintain solidarity with the United States in-chief are responsible for the observance of America in the common values of free of the guidelines and their implementation nations. in day-to-day business. The guidelines deal 4. To reject all forms of political totalitarism. with the distinction between advertising and editorial copy as well as between editors’ 5. To uphold the principles of a free social personal and professional interests, prevent market economy. the exercise of personal advantage and de- fine a position with respect to the treatment of sources. www.axelspringer.com/principles 9 “The Internet is not a future hope for Axel Springer, but real business. Through digitization a new dimension in the development of the company will be achieved.” Mathias Döpfner, 2008 10 AT A GLANCE 2009 Corporate Strategy Axel Springer’s strategic priorities are: market leadership in its German- language core business, as well as the internationalization and the digitization of its core business. The objective: to be one of Europe’s leading multimedia corporations with an integrated offering of print, online and television products. Market leadership in the Digitization of core business German-language core business Axel Springer has taken up the challenges Axel Springer is strengthening its leading associated with digitization and changes market position in its German-language core in media use and has further developed its business through the exploitation of new business models accordingly. The digitization potential sources of revenue. With a multi- strategy orients itself to three core compe- tude of new titles such as, for example, TV tences of the company: DIGITAL or WELT KOMPAKT, the company g Content and brands: Axel Springer is has demonstrated that creative publishing transferring existing print brands and strategies can be successful even in a diffi- content into digital distribution channels cult economic environment. and acquiring online brands. Internationalization of core business g Marketing: The development of online The rapidly growing markets in Eastern Euro- marketing ensures that Axel Springer pe are particularly in the focus of internatio- continues to grow profitably with the nalization. Depending on the regional market market of online advertising. situation, new titles are being established or g Classified advertising and market- bought up, licenses acquired or also awar- places: Axel Springer is developing its ded. Existing brands and concepts are being own portals and holdings in the online specifically directed towards international classifieds market and in the market- target markets. places. 11 The growth of the future lies in internationalization and digitization. Group Key Figures in € millions 2007 2008 Change IFRS IFRS yoy Revenues 2,577.9 2,728.5 5.8 % Consolidated net profit/loss - 288.4 571.1 - EBITDA * 470.0 486.2 3.4 % Total assets 3,826.9 2,812.6 - 26.5 % Dividend ** (in €) 4.00 4.40 10.0 % Average number of employees 10,348 10,666 3.1 % * Adjusted for non-recurring effects and effects from purchase price allocations. ** Dividend proposal for fiscal year 2008. 12 AT A GLANCE 2009 Business Development Profitable growth is in the foreground of all strategic decisions at Axel Springer. Total revenue increased by 5.8 percent in the 2008 fiscal year to € 2,728.5 million and the EBITDA* by 3.4 percent to € 486.2 million. The net income of € 571.1 million is the highest since the company was founded. The dividend was raised from 4.00 euros to a new record level of 4.40 euros per share**.