Roadshow presentation June 2009

Transcription

Roadshow presentation June 2009
Roadshow presentation
June 2009
Claudia Thomé, Head of Investor Relations
Disclaimer
This document, which has been issued by Axel Springer Aktiengesellschaft (the "Company"), comprises the written
materials/slides for a presentation of the management.
Whilst all reasonable care has been taken to ensure that the information and facts stated herein are accurate and that the
opinions and expectations contained herein are fair and reasonable no representation or warranty, express or implied, is
given by or on behalf of the Company, any of its directors, or any other person as to the accuracy or completeness of the
information or opinions contained in this document and no liability is accepted for any such information or opinions.
This document contains forward looking statements which involves risks and uncertainties. These forward looking
statements speak only as of the date of this document and are based on numerous assumptions which may or may not
prove to be correct. The actual performance and results of the business of the Company could differ materially from the
performance and results discussed in this document.
The Company undertakes no obligation to publicly update or revise any forward looking statements or other information
contained herein whether as a result of new information, future events or otherwise.
This document does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer
to purchase or subscribe for, any shares in the Company, nor shall it or any part of it nor the fact of its distribution form
the basis of, or be relied on in connection with, any contract or investment decision in relation thereto.
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Overview Axel Springer
Axel Springer is the only German multimedia stock
1)
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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 – 16.9% of revenues digital1)
Based on Q1/2009.
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
5
Clear strategy with traceable success
Strategy
Market leadership in
German-language
core business
Internationalization
Digitization
Profitable Growth
Creativity
Entrepreneurship
Corporate values
6
Integrity
Competitive advantages of Axel Springer
7
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 of €40m in core print
business in 2008
Short
term
Cost Management
Revenue
Revenue &
& volume
volume
related
related
Marketing
Marketing &
& product
product
related
related
Mid
term
8
Infrastructure
Infrastructure &
&
productivity
productivity related
related
•
•
•
•
•
Paper and printing costs
Optimization of circulation structure
Mailing/Shipping Costs
Costs of ad sales
…
•
•
•
•
•
•
•
•
•
•
•
Newsstand & subscription marketing
Ad spendings
Cancellation of events
Editorial honoraria (M & A)
…
Project costs
Optimization of internal services
Renegotiation of contracts
Multiple publication of editorial content
Merger of departments
…
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)
67%2)
54%3)
52%5)
56%6)
43%7)
26%4)
18%7)
USA
UK
Germany
In 2004, Source: Newspaper Association of America.
In 2007, Source: World Advertising Research Center.
3) In 2007, Source: BDZV.
4) In 2008, Source: Newspaper Association of America.
Axel
Springer
USA
Germany
Axel
Springer
JP Morgan estimates, company data.
In 2007, Source: BDZV, local and regional subscription papers (70% of circulation
in Q1/2009).
7) Q1/2009.
1)
5)
2)
6)
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UK
Axel Springer is Germany’s leading print marketer
and publisher
Market share by adspend1)
Market share by circulation2)
19%
With 19% market share,
Axel Springer reaches
56% of the German
population3) daily
15%
7%
7%
5%
Axel
Springer
G+J
Newspapers
Burda
Holtzbrinck
Magazines
7%
5%
WAZ
6%
4%
Bauer
5%
Axel Bauer
Springer
4%
WAZ SWMH Burda
Newspapers
3%
3%
Holtzbrinck
G+J
Magazines
Source: Nielsen Media Research; gross adspend, excluding classified ads, supplements and media advertising, Q1/2009.
Source: Company estimates based on IVW Q1/2009, 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)
10
Dominant market position in German newspaper market
German newspaper market1)
7%
2%
Core newspaper segments
Market share2)
Newsstand
papers
No. 1
80%
National
Sunday
newspapers
No. 1
86%
National
quality
papers
No. 3
17%
No. 13)
57%
No. 13)
24%
20%
70%
Regional subscription papers
Newsstand papers
National quality papers
Sunday newspapers
Regional
subscription
papers
Except weekly newspaper based on BDZV/IVW Q1/2009.
Based on paid circulation Q1/2009.
3) Source: Hügel Statistik. Based on gross advertising volumes among all regional newspapers in Hamburg/Berlin.
1)
2)
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Only BILD reaches more people than biggest German
TV show
(reach in m)
America’s
13.1 Got Talent
11.6
The X
13.2 Factor
Wetten,
10.0 dass…?
Koh
7.9 Lanta
7.7
3.6
1.9
BILD
Le monde
USA Today
The Sun
Source: Germany: ma 2009 Pressemedien 1, average viewers of “Wetten, dass ...?” 2008, viewers aged 14+, GFK/TV Panel 2008. France: Average of Koh Lanta, EPIQ-Studie, Mediametrie. USA:
Company data for 2008. UK: Average paid circulation of the Sun, Jul-Dec/2008, NRS (National Readership Survey); average Jan-Dec/2008 of The X Factor, BARB (BroadcastersAudience Research
Board): MRI (Mediamark Research and Intelligence), Nielsen Media Research
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Unique expansion path: example BILD
13
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
`70
14
`75
`80
`85
`90
`95
`00
`05
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
3)
weekly
pocket-sized
No. 1
1)
No. 3
Paid circulation, IVW data, Q1/2009, weekly weighted.
2) For digital TV.
3) Without Yellow press.
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No. 1
No. 1
Cars
Sports
No. 1
No. 1
Youth/Music
No. 1
No. 2
No. 3
Finance
No. 3
No. 2
A strong international presence
Poland
Hungary
Switzerland
Russia
Spain
Digital media
Print
other
12 magazines;
4 newspapers
34 magazines;
10 newspapers
4 magazines
1 newspaper;
13 magazines
(biggest consumer
magazine);
16 magazines
France:
4 magazines +
AUTO PLUS (50%).
Market share 43,7%
(circulation national
daily newspapers)
Market share 19%,
largest publisher
(based on
advertising
revenues)
Market leader weekly
people magazines
& Leading business
magazine in Russia
Market leader TV
listings, business/
financial
Market leader videogames magazines,
computer magazines
Czech Republic:
7 magazines
Romania (40%):
12 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
handelszeitung.ch
bilanz.ch
stocks.ch
beobachter.ch
tele.ch
tvstar.ch
computerhoy.es
autobild.es
hobbyconsolas.es
micromania.es
Czech Republic:
Leading car portal,
auto.cz;
Turkey: Dogan TV
(25%)
Others:
students.pl
sports.pl
stepstone.pl
auto-swiat.pl
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
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Successful digitization ahead of market
Core competencies
Development unique visitors
(m) in Germany
24.7 1)
1. Content/brands
Q1/09:
Digital media
revenues
16.9% of total
revenues
+ 31.6%
2. Ad sales/marketing
3. Classifieds/
marketplaces
18.8
Q1/08
1)
Source: comScore (development unique visitors), gross reach.
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Market Growth:
+ 13.0%1)
Q1/09
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
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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
34
1
1
0
2
7
34
20
61
2006
2007
2008
Acquisitions
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Real estate classifieds revenues:
Online overcompensates print
Revenues in
real estate ads
+7%
+1%
(illustrative)
2006
20
+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
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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%
Reach: 1.285m contacts
3.1m1)
+ 19% since 2006
WELT ONLINE
Reach: 3.79m contacts
2006
2008
Source: Print: AWA 2006, 2008; Online: AGOF 2006-I, 2008-III (NpM), 1)Addition of Contacts
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+ 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
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2007
2008
WELT-Gruppe increased its profitability in 2008
> €10m
EBITDA
2004
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Cost
reductions
Circulation
revenues
Advertising
revenues
Merchandising
and other
revenues
EBITDA
2008
Total reach growth driven by strong brands and
digitization
Newspapers
26.6m contacts
(-0.9%)
In total
87.2m
(+7.9%)
Magazines
35.9m contacts
(+2.0%)
contacts
Online
24.7m contacts
(+31.6%)
Source: MA, AWA, comScore.
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Investment highlights
9
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9
9
9
9
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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 Q1/2009
Q1/2009 – Digitization paying off, EBITDA sligthly up
Operating and adjusted net income up
ƒ EBITDA up 2.1% to €80.3m, EBITDA margin at 13.0% (Q1/08: 12.3%)
ƒ Adjusted net income up 9.7% to €34.9m, adjusted eps up from €1.07 to €1.18
Revenues slightly down in difficult market environment
ƒ Total revenues – 3.4%, ex foreign exchange effects – 1.9%
ƒ 19.4% of total revenues international and 16.9% digital
Strong and secure financial basis creates headroom and has enabled strong
dividend
ƒ Net financial debt down to €335m, net debt/EBITDA at 0.7
ƒ Comfortable headroom through credit line of €1.5bn
ƒ Record dividend of 4.40, dividend yield of 7.6%1)
1)
Share price of €57.80 on April 23, 2009 – date of annual shareholders‘ meeting.
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Revenues slightly down – EBITDA still strong
Total revenues (in €m)
641.7
EBITDA (in €m, margin in %)
-3.4%
-1.7%
293.9
620.0
289.0
+2.1%
78.7
80.3
-8,0%
289.3
266.1
12.3%
13.0%
Q1/08
Q1/09
+10.9%
58.5
64.9
Q1/08
Q1/09
Circulation revenues
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Advertising revenues
Other revenues
Revenues and EBITDA benefiting from
successful digitization
(in €m)
Q1/09
Newspapers
National
Magazines
National
Print
International
Digital Media
Services/
Holding
Revenues
292.4
126.9
72.4
104.7
23.5
Growth yoy
- 1.4%
- 10.1%
-26.0%
+28.5%
-3.9%
EBITDA
64.8
13.1
-2.4
6.8
- 1.9
Δ yoy
(% yoy)
-3.7
(-5.5%)
-11.8
(-47.5%)
-3.1
-
+18.6
-
+1.8
EBITDA
margin
22.2%
10.3%
-
6.5%
-
30
Newspapers National: High margins in difficult
market
in €m
Q1/08
Q1/09
%
ƒ BILD beneficiary of the crisis
Revenues
296.7
292.4
-1.4
ƒ Total revenues almost stable
ƒ Circulation
145.9
153.9
+5.5
ƒ Advertising
145.4
131.5
-9.6
ƒ Circulation and other revenues
strong
ƒ Other
5.3
7.0
+30.6
EBITDA
68.6
64.8
-5.5
ƒ Margin (in %)
23.1
22.2
Launch costs
0.0
-0.9
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ƒ EBITDA margin still high
ƒ Increased investment in strong
brands
Magazines National: Revenues and EBITDA impacted
by difficult and competitive market
in €m
Q1/08
Q1/09
%
Revenues
141.1
126.9
-10.1
ƒ Advertising decline: financial
media impacted most
ƒ Circulation
94.0
89.1
-5.2
ƒ Continued cost discipline
ƒ Advertising
43.6
33.2
-23.9
ƒ Other
3.5
4.7
+31.1
ƒ EBITDA also impacted by
restructuring expenses
EBITDA
24.9
13.1
-47.5
ƒ Margin (in %)
17.6
10.3
Launch costs
-1.1
-0.5
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ƒ Margin remains double-digit
Print International: Revenues down in difficult
markets, EBITDA almost stable
in €m
Q1/08
Q1/09
%
% ex FX
Revenues
97.9
72.4
-26.0
-16.31)
ƒ Circulation
54.1
46.0
-15.0
-5.0
ƒ Advertising
39.3
24.3
-38.1
-28.8
ƒ Other
4.6
2.2
-52.9
-41.7
EBITDA
0.7
-2.4
–
–
ƒ Margin (in %)
0.7
–
Launch costs
-7.0
-0.12)
ƒ Overall difficult markets, especially
in Poland, Hungary, Spain and
Russia
ƒ Revenues ex FX -16% (vs. -26%
reported)
ƒ Major FX impact on Poland and
Hungary
ƒ EBITDA almost stable due to fast
cost savings measures of
international units
ƒ FX impact on EBITDA negligible
1) Excluding
2)
foreign exchange effects of -€9.6m in total revenues.
Part of launch costs decreased due to methodology.
33
Digital Media: Continued strong revenue growth and
strong EBITDA improvement
in €m
Q1/08
Q1/09
%
Revenues
81.5
104.7
+28.5
ƒ Advertising
60.9
77.1
+26.6
ƒ Other
20.5
27.6
+34.1
EBITDA1)
-11.7
6.8
-
-
6.5
-8.1
-4.8
ƒ Margin (in %)
Launch costs
1)
34
EBITDA including income from investments of €1.1m in Q1/2009 (-€12.2m in Q1/2008).
ƒ zanox and idealo beneficiaries of
the crisis
ƒ Strong growth of digital revenues
of 28.5%
ƒ Strong EBITDA increase, EBITDA
margin at 6.5%
ƒ Prior year quarter impacted by
negative investment income from
Dogan TV
Net income/eps
Net income (in €m)
Earnings per share diluted (in €)
449.9
14.55
213.0
7.09
Q1/08 Q1/09
31.8
34.9
Q1/08
Q1/09
Adjusted for
significant nonoperating items
35
1.07
Q1/08 Q1/09
1.18
Q1/08 Q1/09
Adjusted for
significant nonoperating items
Operating cash flow/net debt
(in €m)
Operating cash flow
Net debt (excl. pension liabilities1))
48.1
12/31/08
03/31/09
-370
-335
28.4
Q1/08
Q1/09
Credit line of €1.5bn until 2012
1)
12/31/08: -€355m; 03/31/09: -€345m.
36
Strong financial basis
Leverage2)
Operating cash flow (ltm1), in €m)
350
2.00
320
282
300
274
1.78
283
285
246
250
1.58
265
226 223
1.50
200
1.00
0.75
150
0.85
0.76
100
0.50
0.67
0.69
50
0
0
Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09
1)
2)
Last twelve months.
Leverage: Net financial debt divided by EBITDA (ltm).
37
Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09
Priorities and outlook 2009
1.
Cost discipline
2.
Integration of print and online
3.
Anti-cyclical investments
Outlook
38
Reduction of revenues and significant decline in
EBITDA compared to record year 2008
Investment highlights
9
9
9
9
9
9
39
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
Investor Relations contacts
Claudia Thomé
Daniel Fard-Yazdani
Head of Investor Relations
Deputy Head of Investor Relations
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
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