in €m - Axel Springer

Transcription

Roadshow presentation
March 2009
Dr. Andreas Wiele
Board Member, President BILD division and magazines
Overview Axel Springer
Axel Springer is the only German multimedia stock
1)
2)
3
1
Revenues of €2,728.5m and EBITDA of
€486.2m in fiscal year 2008
2
Exceptional print franchise: market leadership with more than 200 newspapers and
magazines
3
Excellent online presence with more
than 60 assets – 14.0% of revenues digital1)
Based on pro-forma digital media revenues Q1-4/2008.
Based on Q1-4/2008.
Vision:
Axel Springer
becomes the
best integrated
European
multimedia
company
EBITDA on record high
(in €m)
3,500
800
3,000
700
600
2,500
500
2,000
400
1,500
300
1,000
200
500
100
0
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Revenues (left-hand scale)1)
EBITDA (right-hand scale)1)
1)
1991 – 2002 HGB, 2003 – 2008 IFRS
4
Clear strategy with traceable success
Strategy
Market leadership in
German-language
core business
Internationalization
Digitization
Profitable Growth
Creativity
Entrepreneurship
Corporate values
5
Integrity
Competitive advantages of Axel Springer
6
1.
Active cost management
2.
Less exposure to advertising and classifieds
3.
Strong media brands
4.
Early and consistent digitization strategy
Positioning
is paying off in
difficult markets
Considerable cost savings in core print business:
€40m in 2008, €25.5m in Q4
~60%
Active
short
term
mgmt.
60%
Directly
related
to revs.
~40%

Fixed
costs
7
Material & Arts
Subscription
Marketing
Ad spendings
Paper/Color
Ext. printing
Mailing/shipping
Manuf. sites
Editorial depts.
Ad sales dept.
Marketing dept.
Other SG&A
Variable
costs
Measures (extract):
Pagination/volume reduction
Raise editorial productivity
Increase barters/reduce cash spend
Optimization of
Print run
Pagination/formats
Paper grades
Return rates.
Distribution routes optimization
Weight optimization
Axel Springer is less dependent on advertising
and classifieds than its competitors
Advertising revenues
Classified revenues
as % of total revenues
as % of total advertising revenues
80%1)
57%2)
54%3)
52%4)
56%5)
46%6)
36%4)
18%6)
USA
UK
Germany
In 2004, Source: Newspaper Association of America.
In 2006, Source: Zenith, Advertising Association Yearbook.
3) In 2007, Source: BDZV.
Axel
Springer
USA
Germany
Axel
Springer
JP Morgan estimates, company data.
In BDZV, local and regional subscription papers (69% of circulation in Q2/2008).
6) Q1-4/2008.
1)
4)
2)
5)
8
UK
Axel Springer is Germany’s leading print marketer
and publisher
Market share by adspend1)
Market share by circulation2)
20%
With 20% market share,
Axel Springer reaches
56% of the German
population3) daily
17%
10%
8%
5%
Axel
Springer
G+J
Newspapers
Burda
Holtzbrinck
Magazines
7%
4%
Bauer
6%
5%
4%
WAZ
Axel Bauer
Springer
5%
WAZ SWMH Burda
Newspapers
3%
3%
Holtzbrinck
G+J
Magazines
Source: AC Nielsen; gross adspend, excluding classified ads, supplements and media advertising, Q1-4/2008.
Source: Company estimates based on IVW Q1-4/2008, paid circulation; weighted market share taking into account different title frequencies.
3) Source: ma 2009 Pressemedien I; combined reach among German 14+ year-olds of all covered Axel Springer AG newspapers, magazines and 100% owned subsidiaries.
1)
2)
9
Dominant market position in German newspaper market
yields >25% EBITDA margin in largest business segment
German newspaper market1)
7%
2%
Core newspaper segments
Market share2)
Newsstand
papers
No. 1
81%
National
Sunday
newspapers
No. 1
86%
National
quality
papers
No. 3
17%
No. 13)
59%
No. 13)
25%
21%
70%
Regional subscription papers
Newsstand papers
National quality papers
Sunday newspapers
Regional
subscription
papers
Except weekly newspaper based on BDZV/IVW Q1-3/2008.
Based on paid circulation Q1-4/2008.
3) Source: Hügel Statistik. Based on gross advertising volumes among all regional newspapers in Hamburg/Berlin, Q1-4/2008.
1)
2)
10
10
Only BILD reaches more people than biggest TV
program
(reach in m)
America’s
11.7 Got Talent
Wetten,
dass…?
11.6
The X
9.8 Factor
10.0
8.0
Koh
6.7 Lanta
3.6
2.0
BILD
Le monde
USA Today
The Sun
Source: U.K.: average Aug/Sep of The X Factor, NRS (National Readership Survey), BARB (BroadcastersAudience Research Board): MRI (Mediamark Research and
Intelligence), Nielsen Media Research, September 2008; France: average of Koh Lanta, EPIQ-Studie, Mediametrie; Germany: average of Wetten, dass…? 2008,
Viewers aged 14+, GFK/TV Panel 2008.
11
Unique expansion path: example BILD
12
More and more people read BILD and BILD on
Sundays
(reach in m)
12,00
11,00
10,00
9,00
8,00
7,00
6,00
5,00
4,00
`70
13
`75
`80
`85
`90
`95
`00
`05
The BILD brand family is Europe’s No. 1
media brand
1 daily newspaper - 1 Sunday newspaper - 3 weeklies - 1 fortnightly - 2 monthlies - 1 news portal - 4 special interest sites
11.61m
readers
Europe’s No.1
weekly for
women
+ 4.57m add.
exclusive
readers
+ 6.53m
additional
exclusive
readers
Europe’s No.1
fortnightly for
computers
+ 4.53m add.
exclusive
readers
Europe’s No.1
weekly for sports
+ automotive
+ 4.96m add.
exclusive
readers 2)
+ 8.4m
additional
online users3)
68.3% of Germans
above 14 read at
least occasionally
one of the BILD
titles1
28.4m of
Germans read at
least one of each
BILD family issue
+ 7.3m online
users3)
(both net reach)
Source: ma 2009 Presse I; 1) „WLK der jeweils letzten 12 Ausgaben“;2) incl. AB sportscars, allrad, motorsport, autotests; 3) AGOF 2008/III for all objects
14
4 reasons why BILD is the first
true multimedia mass media
1. BILD.de is Germany’s biggest news portal
1.061 bn page impressions
per month
2. BILD.de has the highest average time on site
00: 31:08
31 Min.
08 Sec.
Jan. 2009
Jan. 2009
00: 22:45
22 Min.
45 Sec.
00: 19:02
19 Min.
02 Sec.
606 m page impressions
per month
1
3. BILD has taken User Generated
Content to the next level

> 450,000 transmissions of pictures by readers

…of which 9,603 photos printed and…

…956 photos used for top stories of BILD

30,000 BILD video cameras sold

BILD just started user generated advertising
4. BILDmobil is already Germany’s biggest mobile
news portal – not only among BILDmobil customers
18.8 m page impressions
per month
5.75 m page impressions
per month
BILDmobil
Source: IVW, Nielsen, company data
15
Jan. 2009
SPEGELmobil
Axel Springer: Leading market position in seven
core segments in Germany1)
TV listings
weekly
biweekly
No. 1
No. 12)
Computer
Games
AVF
PC
No. 1
Women
monthly
weekly3)
pocket-sized
No. 1
1)
No. 2
Paid circulation, IVW data, Q1-4/2008, weekly weighted.
2) For digital TV.
3) Without Yellow press.
16
No. 1
Cars
No. 1
No. 1
Youth/Music
No. 1
No. 2
No. 2
Sports
No. 1
Finance
No. 3
No. 2
A strong international presence
Poland
Hungary
Russia
Switzerland
2008
Spain
other
Digital media
Print
12 magazines;
4 newspapers
34 magazines;
10 newspapers
4 magazines
Market share
43,6%
(circulation
national daily
newspapers)
Market share
19%,
largest publisher
(based on
advertising
revenues)
Market leader
weekly people
magazines
News portals:
dziennik.pl
eFakt.pl
newsweek.pl
redakcja.pl
Regional news
network in
8 countries
Women portals
nana.hu
kiskegyed.hu
glamouronline.hu
lakaskultura.hu
Economical
newsportal
vg.hu
ok-magazine.ru
computerbild.ru
runewsweek.ru
Others:
students.pl
sports.pl
popcorn.pl
auto-swiat.pl
1 newspaper;
13 magazines
(biggest consumer
magazine);
16 magazines
Market leader TV
listings, business/
financial
Market leader
videogames
magazines,
computer
magazines
handelszeitung.ch
bilanz.ch
stocks.ch
beobachter.ch
tele.ch
tvstar.ch
computerhoy.es
autobild.es
hobbyconsolas.es
micromania.es
Amiado Group:
students.ch
partyguide.ch
usgang.ch
France, Italy, UK, Spain, Belgium, Switzerland, Canada, Morocco
France, Italy, UK, Spain, Benelux, Switzerland, US, China, Sweden, Poland
17
France:
4 magazines +
AUTO PLUS
(50%).
Czech Republic:
7 magazines
Romania (40%):
12 magazines
€58.3m
(Segment Newsp.
+ Mag. National)
€410.5 m
Internat.
revenues,
(Segment
Print
Internat.)
€596.8m
Internat.
Revenues
Czech Republic:
Leading car portal,
auto.cz;
Turkey: Dogan TV
(25%)
21.9 %
€116.3 m
Internat.
revenues
(Part of
segment
Digital
Media)
of total
revenues
Successful digitization ahead of market
Core competencies
Development unique visitors
(m) in Germany
19.3 1)
1. Content/brands
+ 16.9%
2. Ad sales/marketing
3. Classifieds/
marketplaces
16.5
Q1-4/07
1)
Source: comScore (development unique visitors), gross reach.
18
Market Growth:
+ 6.5%1)
Q1-4/08
Q1-4/08:
pro forma
digital media
revenues
14.0% of total
revenues.
Digital landscape: Occupying core segments
Classifieds/
market places
Content/brands
Infotainment
News
Finance
Real estate
Ad sales/
marketing
Jobs
Ad
sales/
marketing
(reach and
performance based)
Regional
Consumer
Electronics
Market
Places
Auto
Youth/Music
Women
Sport
Jobs
TV
19
Ad Sales/
Marketing
Successful digitization: dynamic growth through
acquisitions and launches
Acquisitions
Organic
Disinvestments
Total
Organic
2006 2007 2008 Total
5
16
8
29
3
19
12
33
1
1
0
2
7
34
20
60
2006
2007
2008
Acquisitions
20
Real estate classifieds revenues:
Online overcompensates print
Revenues in
real estate ads
+7%
+1%
(illustrative)
2006
21
+83%
+74%
-11%
-14%
2007
2008
Case study: WELT-Group – successful transition
from newspaper to multimedia brand
Single Newsroom
web-to-print workflows create
content for all channels and
media
Mobile
Online
Video
Online-first strategy
Articles and photos are distributed
online first and across several channels
22
Quality journalism
for three national and a regional newspaper
seven days a week
Transformation of WELT brand into digital multimedia family increases both, print and online reach
WELT Group:
Total reach (gross) across all media
WELT/WELT KOMPAKT
Reach: 0.73m contacts
+ 4% since 2006
5.8m1)
WELT am SONNTAG
+87%
3.1m1)
+ 19% since 2006
WELT ONLINE
2006
2008
Source: Print: AWA 2006, 2008; Online: AGOF 2006-I, 2008-III (NpM), 1)Addition of Contacts
23
+ 187% since 2006
Total reach (gross) of WELT / WELT am
SONNTAG grows while competitors decline
(in m)
WELT1)/WamS
2.07
2.07
1.84
1.82
2.01
1.92
FAZ/FAS
SZ
2.01
1.83
1.54
1.35
1.36
1.26
2005
2006
Source: AWA 2005 to 2008; 1) since 2006 DIE WELT / WELT Kompakt
24
2007
2008
WELT-Gruppe increased its profitability in 2008
> €10m
EBITA
2004
25
Cost
reductions
Circulation
revenues
Advertising
revenues
Merchandising
and other
revenues
EBITA
2008
Total reach growth driven by strong brands and
digitization
Newspapers
26.6m contacts
(-0.9%)
In total
81.8m
(+4.1%)
Magazines
35.9m contacts
(+2.0%)
contacts
Online
19.3m contacts
(+16.9%)
Source: MA, AWA, comScore.
26
Investment highlights
9
9
9
9
9
9
27
Only German multimedia stock
Leading market positions and brands
Unique track record in digitization
Strong operating profitability despite current media market trend
Proven track record of cost discipline after rigorous restructuring
Highly incentivized management team
Financials 2008
2008 – another record year at Axel Springer
Operating and net income at all time high
EBITDA up 3.4% to €486.2m in difficult market environment
EBITDA margin at 17.8%
Net income at all time high of €571.1m (2007: €-288.4m)
Top line growth driven by digital and acquisitions
5.8% growth in group revenues due to major digital acquisitions
Organic growth (ex consolidation effects) of 1.2% in difficult market environment
Revenue growth in all categories: circulation (+2.1%), advertising (+4.6%), other (+36.3%)
21.9% of total revenues now international and 14.0% digital
Strong and secure financial basis creates headroom and has enabled shareholder payback
Net financial debt down to €370m from €743m (year end 2007)
Net debt/EBITDA down to 0.8 from 1.7 (year end 2007)
Comfortable headroom through credit line of €1.5bn
Record dividend of 4.40 proposed, dividend yield of 8.6 (based on year-end share price)
Share buyback of 917,341 shares at €80 completed in July
29
Consumer sentiment and gross advertising
expenditures
Consumer sentiment Germany1)
Gross advertising expenditures2) (in €m)
Q1-4/08
% yoy
Q4/08
% yoy
Newspapers
3,780
-0,1%
1,085
-3,9%
Magazines
3,141
-2,0%
931
-5,5%
Online
1,404
+29,2%
422
+13,6%
Radio
1,140
-2,2%
336
+1,0%
TV
8,512
+3,4%
2,685
+2,9%
708
+3,6%
194
+7,8%
10
9
8
7
6
5
4
3
1.9
2
1
Outdoor
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2006
1)
2)
2007
2008
Source: GFK Konsumklimaindex.
Source: Nielsen Media Research (excluding classified ads, supplements and media advertising).
30
Strong revenue growth – even without consolidation
effects
(in €m)
Total revenues
Revenues ex consolidation effects
+5.8%
2,728.5
+1.2%
2,577.9
2,585.1
2,555.4
+2.1%
1,215.8
+1.8%
1,190.6
729.3 +0.0% 729.6
+4.6%
733.0 +0.2% 734.4
+2.2%
+2.5%
1,193.2
1,183.6
367.3
68.0
Q4/07
-4.3%
350.4
+17.3%
79.8
Q4/08
Circulation revenues
31
1,153.4
349.6
365.2
-4.6%
1,201.0
-2.6%
303.6
296.1
1,248.1
304.2
297.7
1,179.3
+36.3%
194.2
264.7
Q1-4/07
Q1-4/08
Advertising revenues
68.0
+12.6%
Q4/07
Other revenues
Q4/08
76.5
192.5
+19.8%
Q1-4/07
230.6
Q1-4/08
EBITDA on record high
(in €m)
EBITDA, EBITDA-margin
486.2
470.0
480.01)
+10.6%
433.91)
179.6
152.5
173.41)
+24.1%
16.8%1)
17.6%1)
139.51)
24.3%1)
19.0%1)
Q4/07
1)
32
Q4/08
Adjusted for ProSiebenSat.1 dividend (€23.1m) and payments from Kirch insolvency.
Q1-4/07
Q1-4/08
Excellent EBITDA margins in core business,
positive in growth business
(in €m)
Newspapers
National
Magazines
National
Print
International
Digital Media
Services/
Holding
Revenue
1,277.6
564.1
409.8
378.2
99.0
Growth yoy
- 1.0%
- 4.0%
+0.4%
+81.7%
+18.6%
EBITDA
348.9
88.8
27.8
20.01)
- 0.2
Δ yoy
(% yoy)
-15.0
(-4.1%)
+14.9
(+20.2%)
+17.2
(>100%)
+21.1
+14.9
EBITDA
margin
27.3%
15.7%
6.8%
5.3%
-
1) Excluding income from associates
33
Newspapers National: excellent margins in difficult
market due to cost discipline
Revenues almost stable due to
circulation and other revenues;
accelerating decline in advertising
revenues
in €m
Circulation
600.7
625.8
Excellent EBITDA margin despite
revenue decline, BILD relocation
and wage increases due to active
cost management
Advertising
667.0
Other
34
Q4/07
Q4/08
%
343.4
338.6
-1.4
+4.2
148.9
157.0
+5.4
623.4
-6.5
186.8
173.2
-7.3
22.7
28.3
+24.7
7.7
8.4
+9.1
EBITDA
363.9
348.9
-4.1
103.5
103.1
-0.4
Margin (in %)
28.2
27.3
30.1
30.5
Launch costs
-0.6
-0.6
0.0
-0.6
Revenues
2007
2008
%
1,290.3 1,277,6 -1.0
Magazines National: EBITDA and EBITDA margin on
historic high
Revenue decline in difficult and
competitive market
EBITDA and EBITDA margin on
all-time high due to active cost
management, profitabilisation
of launches and portfolio management
35
in €m
2007
2008
%
Q4/07
Q4/08
%
Revenues
587.8
564.1
-4.0
153.8
144.5
-6.0
Circulation
381.6
373.6
-2.1
95.3
94.3
-1,0
Advertising
192.2
176.0
-8.4
54.6
46.1
-15.6
Other
14.1
14.5
+2.8
3.9
4.2
+7.7
EBITDA
73.9
88.8
+20.2
16.7
22.9
+37.5
Margin (in %)
12.6
15.7
10.8
15.9
Launch costs
-14.1
-3.8
-2.0
-0.9
Print International: Revenues stable, EBITDA more
than doubled
Stable full year revenues; Q4
negatively impacted by downturn
EBITDA more than doubled due
to reduced launch costs
EBITDA margin: considerable full
year improvement and still high in
Q4 despite difficult markets
in €m
2007
2008
%
Q4/07
Q4/08
%
Revenues
408.3
409.8
+0.4
114.2
105.4
-7.7
Circulation
208.4
216.4
+3.8
53.5
52.9
-1.1
Advertising
173.2
177.4
+2.4
54.8
49.2
-10.2
Other
26.7
16.0
-40.2
5.8
3.3
-43.1
EBITDA
10.6
27.8
>100
16.8
14.4
-14.6
Margin (in %)
2.6
6.8
14.8
13.7
-40.2
-20.7
-5.5
-4.3
Launch costs
36
Digital Media: Excellent revenue growth and strong
EBITDA improvement
Full year revenue growth of 82%
due to successful operative
achievements and acquisitions,
organic growth rate of 25%, no
slow-down in Q4
Strong EBITDA increase despite
continously high launch activities
EBITDA margin at 5.3% for 2008
and 13.4% in Q4
1) EBITDA excluding income from associates
37
in €m
2007
2008
%
Q4/07
Q4/08
%
Revenues
208.1
378.2
+81.7
96.1
120.7
+25.6
Proforma
307.4
383.1
+24.6
97.9
120.2
+22.8
EBITDA
36.7
20.9
-43.0
9.9
20.1
>100
Inv. income
37.8
0.9
-97.6
3.0
4.7
+27.8
EBITDA1)
-1.1
20.0
-
6.9
16.2
>100
Margin (in %)
-0.5
5.3
7.2
13.4
Launch costs
-30.5
-26.6
-9.4
-2.6
Digital media adjusted for one-off effects and launch
costs already reach EBITDA margin of 15.7%
(in €m)
26.6
59.5
12.0
Launch
costs
20.9
20.01)
EBITDA
margin
1)
2)
One-off/
effects1)
5,5%
Excluding investment income
Start-up losses in pay TV platform and currency effects at Dogan TV, Turkey
38
15.7%
Services/Holding: Increase in revenues and EBITDA
Revenue increase due to
consolidation effects and growth
in external printing revenues
EBITDA increase due to lower
expenses for restructuring,
transactions, legal and project
costs
39
in €m
2007
2008
%
Q4/07
Q4/08
%
Revenues
83.4
99.0
+18.6
25.6
25.2
-1.6
EBITDA
-15.1
-0.2
5.5
19.0
>100
Net income/eps
Net income (in €m)
Earnings per share (in €)
571.1
18.54
234.6
254.5
-288.4
Q1-4/07 Q1-4/08
8.43
-9.70
Q1-4/07 Q1-4/08
Adjusted for
significant oneoffs
40
7.77
Q1-4/07 Q1-4/08
Q1-4/07 Q1-4/08
Adjusted for
significant oneoffs
Net income adjusted for significant nonoperative one-offs increases by 8.4%
(in €m)
571.1
Of which €60m
depreciation
Prinovis
438.3
+8.4%
1.0
16.0
36.1
571.1
110.6
30.3
234.6
254.4
27.8
10.5
6.2
Tax
Kirch
572.4
-288.4
Net
loss
2007
41
PIN
PPA &
H&F
amortization option
of goodwill
value
and other
non-recurring
effects
P7S1 /
Kirch
Tax
Net
Net
PPA &
H&F
income
income amortization option
2007
2008
of goodwill value
(adjusted) (adjusted) and other
non-recurring
effects
P7S1
Net
income
2008
Operating cash flow/net financial debt
(in €m)
Operating cash flow
Net financial debt
283.1
265.1
12/31/07
12/31/08
-370
-743
Pension liabilities
Q1-4/07
Q1-4/08
Credit line of €1.5bn secured until 2012
42
12/31/07
-€348m
12/31/08
-€354m
Strong financial basis
(in €m)
Q1/07
Q2/07
Q3/07
Q4/07
Q1/08
Q2/08
Q3/08
Q4/08
-
-
747
743
298
366
405
370
EBITDA2)
431
419
420
470
444
489
477
486
Leverage
-
-
1.78
1.58
0.67
0.75
0.85
0.76
Equity ratio (in %)
53.7
54.8
42.3
31.7
38.1
38.3
37.2
37.7
Operating cash flow2)
274
282
320
283
246
226
223
265
Net financial debt1)
1)
2)
Excluding pension liabilities.
Last twelve months.
43
Priorities 2009
44
1.
Cost discipline
2.
Integration of print and online
3.
Anti-cyclical investments
Investor Relations contacts
Claudia Thomé
Daniel Fard-Yazdani
Head of Investor Relations
Investor Relations Manager
Phone: +49 (0)30 2591 77421
Phone: +49 (0)30 2591 77425
Mobile: +49 (0)160 90445035
Mobile: +49 (0)151 52844459
claudia.thome@axelspringer.de
daniel.fard-yazdani@axelspringer.de
Axel Springer AG
Axel-Springer-Str. 65
10888 Berlin / Germany
Fax: +49 (0)30 2591 77422
45