Magazines & International CAPITAL MARKETS DAY Berlin, September 17, 2007 Dr. Andreas Wiele President Magazines and International, Member of the Board 6jfm0209 The group strategy is guiding the divisional strategy Group strategy Market leadership in Internationalization Digitisation German-language core business Profitable growth Divisional strategy for Magazines & International 1.3. Focus on profitable core segments and markets 2.3. Market leadership / no. 2 in each market 3.3. Digitisation of core competencies 6jfm0209 17/09/2007 2 Continuous segment margin improvement since 2004 and growth of share of international revenues since 2002 EBITA margin (Segment) Share of international Revenue (Group) Launch of +29,4% TV DIGITAL, Frau von Heute, JOLIE, 19,4% AUDIO VIDEO FOTO BILD 11,0% 10,5% 9,5% 8,7% 16,0% 16,1% 15,6% 15,8% 6,3% 14,2% 13,7% 4,2% 1,3% 2002 2003 2004 2005 2006 Q1-Q2 Q1-Q2 2002 2003 2004 2005 2006 Q1-Q2 Q1-Q2 2006 2007 2006 2007 6jfm0209 29/08/2007 3 Divisional strategy for Magazines & International 1.3. Focus on profitable core segments and markets 2.3. Market leadership / no 2 in each market 3.3. Digitisation of core competencies 6jfm0209 17/09/2007 4 Leading market position in 7 core segments in Germany TV listings Computer Cars Sports Weekly No. 2 38% Aud. / Vid. No. 1 37% Cars No. 1 60% Sports No. 1 46% Fortnightly No. 2 20% PC No. 1 36% All TV Guides No. 2 29% Games No. 2 27% 2004: Launch of TV DIGITAL 2003: Launch of Audio Video Foto Bild 2001: Acqu. of AZ Autoverlag 2007: Launch of TV Guide 2007: Launch of AB Klassik Women’s Youth / Music / Lifestyle Finance 2) Weekly No. 2 27% Music No. 1 58% Business/ Monthly No. 3 13% Youth No. 2 33% Finance No. 2 18% 2003: Launch of Frau von Heute 2001 Launch of YAM & MAXIM 2005: Acquisition of DM Euro 2003: Launch of JOLIE 2002 Launch of Starflash, Rolling Stone 6jfm0209 1) By paid circulation 2) Without yellow press 17/09/2007 5 Source: Company estimates based on IVW Ø 2006, paid circulation weighted market share taking into account different title frequencies, core market regarded Leading market position in 8 countries* with own operations Hungary Poland Czech Republic TV Listings No.1 54% Dailies No.1 40% Computer No.1 51% Car No.1 58% Home & Interior No.1 39% Business Mag. No.1 55% Youth No.1 65% Youth No. 2 33% Econ. Newsp. No.1 70% Car No.2 51% Games No.2 30% Crossword No.1 45% 2003: Launch of FAKT 2006: Acquisition of SÁRGA RTV 2003: Launch of Svet 2006: Launch of DZIENNIK 2007: Publisher of Manager Magazin, Pocicatu (COBI) Harvard Business Manager Spain Switzerland France Russia Computer No.1 72% Bilanz No.1 30% Car (in JV) No. 1 58% Business Monthlies No. 1 70% Games No.1 85% Cooking mag. No. 1 44% Weeklies/News No. 1 47% 2005: Launch of AUTO BILD & 2007: Acquisition of 2006: Launch of COMPUTER BILD 2005: Launch of AUDIO VIDEO Jean Frey AG and 2006: Launch of OK! FOTO HOY 3 Ringier TV magazines Sources: ABC (Czech Republic), ZKDP (Poland), OJD (Spain), MA Leader (Switzerland), OJD (France), Own estimates. Sold Circulation 2006 17/09/2007 * Including Romania 6 Licensing business: Additional revenues from existing content with publishers in 31 countries Licenses sold Total 2000 11 2 1 0 4 18 +20 +6 +1 +2 +6 2007 31 8 2 2 10 53 Total of new license titles launched after 2000 35 17/09/2007 7 Divisional strategy for Magazines & International 1.3. Focus on profitable core segments and markets 2.3. Market leadership / no 2 in each market 3.3. Digitisation of core competencies 17/09/2007 8 Successful TV magazine launches in Germany Most successful magazine launch during last years TV Digital – Launch of Germany’s first TV listings magazine for 2004 the digital TV generation First TV listings magazine with all free & pay TV stations Exclusive partnerships with all main pay / cable operators 1) Sold circulation of 1.85m only 3 years after launch 2) Segment position strengthened 2007 TV Guide – Launch of new bi-weekly TV listings magazine 6jfm0209 1) Premiere, Kabel Deutschland, T-Home, CableCom 2) IVW Q2 2007, paid circulation 17/09/2007 9 Example Switzerland: Building a leading position in Swiss magazine market by follow-on acquisitions Focus on business and Acquisition of Verlagsgruppe 1999 financial publications Handelszeitung Leading general interest Acquisition of 99.5% of Jean Frey AG adding 1/2007 magazine, TV guide and BEOBACHTER, TV STAR and BILANZ business magazine Leading online site 3/2007 Acquisition of students.ch for next generation of business executives Acquisition of Ringier TV listings and 6/2007 No. 1 in TV guides subscriber list of business magazine “Cash” Reaching 46%1) of leaders in German-speaking Switzerland in 2 core segments: Business / finance and TV guides / general interest 6jfm0209 1) Source: MA Leader 2007 17/09/2007 10 Example Poland: Organic growth to top position in media market within 10 years N° 1 computer 1994/ Launch of strong Axel Springer brands and car magazines 2000 (COMPUTER BILD, AUTO BILD) in Poland 2001/ Launch of strong international brands N° 1 business 2002 (FORBES, NEWSWEEK) magazine in Poland N° 1 of daily 2003 Launch of the newspaper “FAKT” newspapers in Poland Launch of the quality 4/2006 N° 2 of quality newspaper “DZIENNIK” newspapers in Poland AS exchanges with Marquard sport newspaper N° 1 of sport 9/2007 “Przeglad Sportowy” against 4 women newspapers in magazines of AS Poland Reaching 46% of circulation of national dailies 6jfm0209 17/09/2007 11 Successful expansion into Poland Polish newspaper market in H1/20021) Polish newspaper market in H1/20072) Axel Springer launches 600 600 500 500 400 400 300 300 200 200 (Copies soldin(Copies '000s) 100 (Copies soldin '000s) 100 0 0 d ą FAKT Gazeta Gazeta G.Prawna Wyborcza Przegl Sportowy Wyborcza DZIENNIK Dz.Sportowy Nowy Dzien Nowy Super Express Super Rzeczpospolita Super Express Super Rzeczpospolita 6jfm0209 1) Source: ZKDP, H1/2002, total sold circulation 2) Source: ZKDP, H1/2007, total sold copies 17/09/2007 12 Divisional strategy for Magazines & International 1.3. Focus on profitable core segments and markets 2.3. Market leadership / no 2 in each market 3.3. Digitisation of core competencies 6jfm0209 17/09/2007 13 Divisional digitisation strategy in sync with corporate strategy 3 core competencies domestic international 3. for core 1st 1. Contents / brands 9 segments 9 priority 3. 2. Ad sales / marketing 9via zanox9 via zanox In news- 3.3. Classifieds / market places 99for cars paper markets 17/09/2007 14 German magazines: Transfer of strong contents and brands mostly successfully accomplished Print Online Online market position Cars no. 1 , no. 3* Women no. 1 TV not measurable Finance no. 2 Electronics launched in 06/07 *for classifieds 17/09/2007 15 Systematic internationalization of digital approach Strong concept, content and brand CENTRALIZED … DIGITISATION auto.cz in CZ HU ES Low risk ‘Hub system‘ … RU CZ ES High … scalability GER HU ES IT PL … stocks.ch in CH HU LOCAL Strong local DIGITISATION • Online-news- • No. 1 of • Leading • Business and • Online news- portal with a Swiss online consumer help finance portal portal in PL content strong Polish portals for site ‘Spot system‘ print brand students High local synergies 17/09/2007 16 Summary 9 Magazine business focused on core segments of the group 9 Highly successful magazine launches in key segments 9 Segment margins constantly improving after major launches Successful international expansion through launches and 9 acquisitions 9 Market positions in key countries significantly strengthened 17/09/2007 17 Outlook Focus on profitable segment leadership and margin improvement in the existing business Fuel growth through increasing digitisation and integration of acquired assets No major print launches and no new market entries planned for 2008 Focus on increasing profitability 17/09/2007 18.