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Company presentationNovember 2018
Disclaimer
Company presentation2
This document, which has been issued by Axel Springer SE (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 securities in any jurisdiction, nor shall they or any part of them nor the fact of their distribution form the basis of, or be relied on in
connection with, any contract or investment decision in relation thereto.
38%
47%
13%
2%
Axel Springer at a glance
Company presentation3
61%28%
11%
▪ Leading digital classifieds
operator
▪ Leading digital publisher in
Europe with unique media brands
▪ Successful transformation with
81%1 of adj. EBITDA from digital
activities
▪ Organic growth supported by
targeted M&A with strong track
record
▪ Strong FCF, high dividend yield
and payout ratio (2017: 77%)
Highlights
Financials
Revenues by segment1 Adj. EBITDA by segment1,2
1) Based on 9M/18 figures. 2) Negative EBITDA S/H allocated proportionally to operative segments. 3) Adj. for effects from IFRS 16, consolidation and FX effects.4) Previously: Low to mid single-digit % growth. 5) Previously: Mid to high single-digit % growth.
Classifieds Media
Services / Holding
Marketing Media
News Media
2017 Outlook 2018 (reported) Outlook 2018 (organic3)
Revenues in €m 3,562.7 Low to mid single-digit % growth Low to mid single-digit % growth
EBITDA (adj.) in €m 645.8 Low double-digit % growth Mid to high single-digit % growth
EBITDA margin (adj.) 18.1%
EPS (adj.) in € 2.60 Mid single-digit % growth4 High single-digit % growth5
DPS (FY 2017) in € 2.00
81% of adj. EBITDA from digital activities – digital
revenues with organic growth of 9.1% in 9M/18
Company presentation4
digital
Revenues adj. EBITDA
digital
69% 81%
Key messages 2017 – strong execution
Company presentation5
More disclosure on classifieds
▪ Strong organic revenue growth of 12.7% in FY/17,
driven especially by jobs
▪ Positive response to new single-asset disclosure and
dedicated CMDs in London and New York in June´17
▪ Increased disclosure and better visibility as basis for
re-evaluation of assets (especially of jobs classifieds)
Stable adj. EBITDA in News Media
▪ Mid-term guidance given: adj. EBITDA to be stable in
a range between €225m and €245m for 2017-20191
▪ News Media adj. EBITDA 2017: €218.8m
▪ Advertising revenues in German market up 1.7% in
FY/17
▪ Reorganization of German publishing units
Strict M&A discipline in content
▪ Guidance given: No loss-making content acquisitions
before existing digital content businesses have
proven profitability
▪ Strong progress at Business Insider with organic
revenue growth of 46% in FY/17
▪ Break-even for Business Insider envisaged for H2/18
Leading digital publisher
▪ Focus on classifieds and content
▪ Active portfolio management:
- Acquisition of Logic-Immo in France
- Acquisition of minority stakes in Purplebricks in UK
and Homeday in Germany
- Acquisition of Universum (employer branding)
- Sale of aufeminin; early sale of Doğan stake
✓ ✓
✓ ✓
1
3 4
2
1) Includes changes from the adoption of IFRS 16 and corresponds to previous range of €205m - €225m.
What to expect in 2018? We will continue to deliver.
6
➢ Further growth in classifieds
➢ Deliver on mid-term stable EBITDA guidance for News Media
➢ Break-even at Business Insider in H2/18
➢ Explore further potential from technology and data
Company presentation
9M/18 adj. group EBITDA up 14.4%, organic increase
of 6.7%
7
▪ Organic revenue increase of 3.6% and adj. EBITDA up by 6.7% organically
▪ Consolidation effects mainly from Logic-Immo, Universum and affilinet, deconsolidation of aufeminin
Comments
in €m 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 2,326.0 4.7% 3.6% 765.1 2.3% 2.0%
Advertising 1,569.1 8.7% 6.7% 510.3 7.1% 6.0%
Circulation 449.0 -7.2% -5.6% 154.3 -8.6% -7.1%
Other 307.8 4.4% 3.5% 100.4 -1.9% -1.2%
adj. EBITDA 541.4 14.4% 6.7% 186.9 19.7% 12.8%
Margin 23.3% 2.0pp 24.4% 3.6pp
1) Adjusted for consolidation and FX effects, as well
as IFRS 16 effects for adj. EBITDA.
Company presentation
8
Classifieds Media: adj. EBITDA up 20.9% in Q3/18
▪ Revenue increase driven by strong organic growth (+10.8%) as well as consolidation effects
▪ Adj. EBITDA increase of 15.0% due to organic increase of 8.0% as well as effects from IFRS 16 and
consolidation effects
▪ Margin up slightly in Q3 yoy, 9M/18 margin down due to investments
Comments
1) Adjusted for consolidation and FX effects, as well
as IFRS 16 effects for adj. EBITDA. in €m 9M/18 yoy org.1 Q3/18 yoy org.
1
Revenues 890.2 19.4% 10.8% 305.0 19.9% 9.8%
Advertising 860.6 17.5% 11.1% 292.8 17.0% 10.1%
Other 29.6 >100 % -11.6% 12.2 >100 % -10.0%
adj. EBITDA 353.5 15.0% 8.0% 130.2 20.9% 13.7%
Margin 39.7% -1.6pp 42.7% 0.3pp
Classifieds Media
Jobs classifieds with 16.4% organic growth in 9M/18
and lower margin due to investments
99
34%
▪ Strong organic growth of 16.4% in 9M/18, mainly driven by Continental Europe (+22.3% organic)
▪ Organic growth of 13.6% in Q3/18 due to a tough prior year comp
▪ Margin down 2.4pp due to planned investments for future growth in 9M/18, slightly up in Q3/18 –
margin expected to be significantly up yoy in Q4/18
Comments
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment
adj. EBITDA which includes costs of €8.2m in 9M/18 and €6.8m in 9M/17 (thereof business development, M&A and other), not allocated to the three subsegments.
Jobs
in €m 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 431.6 20.2% 16.4% 153.6 18.8% 13.6%
adj. EBITDA2 165.7 13.2% 6.6% 67.2 19.8% 13.8%
Margin 38.4% -2.4pp 43.7% 0.4pp
Classifieds Media
10
Jobs classifieds: Phasing effects in quarterly growth
rates
▪ Q3/17 with strongest
growth rate due to
additional revenues on
top of annual contracts
▪ 2018 revenues split more
evenly across the
quarters due to larger
annual contracts
Comments
16%14%
22%
16%
19%17%
14%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
300
350
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18
Revenues (Jobs) Organic growth
in €m
meinestadt.de included from Q1/18 following re-allocation to Jobs (from General/Other).
Classifieds Media
Real Estate classifieds with further good
development in Q3/18
1111
▪ Reported revenue growth of 29.1% driven by consolidation effects from Logic-Immo (organic revenue
increase 6.3%) in 9M/18
▪ Re-acceleration of organic revenue growth at SeLoger to high single-digit in Q3/18
▪ Adj. EBITDA up 20.9% (+12.8% organically), decline of reported margin due to integration of Logic-
Immo (4ppts margin increase excl. Logid-Immo), continued strong margin improvement at Immowelt
Comments
Real Estate
in €m 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 278.2 29.1% 6.3% 94.4 30.8% 6.4%
adj. EBITDA2 132.6 20.9% 12.8% 46.8 24.1% 16.1%
Margin 47.7% -3.2pp 49.5% -2.7pp
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment
adj. EBITDA which includes costs of €8.2m in 9M/18 and €6.8m in 9M/17 (thereof business development, M&A and other), not allocated to the three subsegments.
Classifieds Media
General/Other with better margin in Q3/18
1212
▪ Revenue increase of 5.8% (4.4% organic growth) in 9M/18
▪ @Leisure with improved revenue development following slow start to the year, Yad2 with continued
negative impact from changes in the regulatory environment for real estate
▪ Adj. EBITDA up 8.6% (+4.0% organically) in 9M/18
Comments
General/Other
in €m 9M/18 yoy org.1 Q3/18 yoy org.
1
Revenues 180.4 5.8% 4.4% 57.0 7.8% 5.0%
adj. EBITDA2 63.4 8.6% 4.0% 18.9 14.1% 5.9%
Margin 35.1% 0.9pp 33.1% 1.8pp
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment
adj. EBITDA which includes costs of €8.2m in 9M/18 and €6.8m in 9M/17 (thereof business development, M&A and other), not allocated to the three subsegments.
Classifieds Media
News Media revenues only slightly below prior year
13
1) Adjusted for consolidation and FX effects, as well
as IFRS 16 effects for adj. EBITDA.
▪ Revenues down slightly by 0.5%, only minor effects from consolidation and FX
▪ 36.8% of revenues from digital activities
▪ National revenues with tough prior year comps in Q3/18 advertising, international revenue growth driven by
continued strong growth of Business Insider
▪ Adj. EBITDA reported on prior year level, driven mainly by effects from IFRS 16 (organically down 8.8%)
Comments
in €m 9M/18 yoy org.1 Q3/18 yoy org.
1
Revenues 1,089.6 -0.5% -0.1% 357.6 -3.3% -2.9%
thereof digital 401.5 12.7% 12.1% 135.4 13.2% 11.3%
digital share of revenues 36.8% 37.9%
Advertising 480.6 4.0% 3.2% 150.2 1.9% 1.3%
Circulation 449.4 -7.1% -5.5% 154.3 -8.6% -7.1%
Other 159.6 6.9% 6.9% 53.0 -1.0% -1.0%
adj. EBITDA 165.1 0.0% -8.8% 51.6 -4.8% -13.4%
Margin 15.1% 0.1pp 14.4% -0.2pp
News Media
Overview News Media National and International
14
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.
in €m 9M/18 yoy org.1 Q3/18 yoy org.
1 9M/18 yoy org.1 Q3/18 yoy org.
1
Revenues 781.8 -3.4% -4.2% 257.4 -6.7% -7.5% 307.8 7.6% 11.6% 100.2 6.4% 11.4%
thereof digital 204.6 11.2% 7.8% 69.1 10.4% 6.5% 196.8 14.4% 16.7% 66.3 16.3% 16.5%
digital share of revenues 26.2% 26.8% 63.9% 66.2%
Advertising 307.2 -1.4% -3.6% 92.8 -5.4% -7.8% 173.4 15.1% 17.5% 57.3 16.4% 20.0%
Circulation 359.9 -6.8% -6.8% 126.0 -8.1% -8.1% 89.4 -8.3% -0.3% 28.3 -11.1% -2.7%
Other 114.6 2.8% 3.3% 38.5 -5.1% -5.1% 45.0 18.8% 17.4% 14.5 11.6% 11.8%
adj. EBITDA 115.9 -10.8% -17.4% 35.0 -15.6% -22.5% 49.2 39.8% 23.9% 16.7 30.3% 18.0%
Margin 14.8% -1.2pp 13.6% -1.4pp 16.0% 3.7pp 16.6% 3.1pp
News Media National News Media International
News Media
▪ Revenues down yoy due to deconsolidation of aufeminin. Organic revenues up 1.3% in 9M/18 yoy: Reach-
based marketing slightly below 9M/17 (-0.8%) due to US exit of Bonial in Q4/17, Performance Marketing with
organic increase of 4.8%
▪ Adj. EBITDA up 11.4% (+8.9% organically). Reach Based Marketing adj. EBITDA with strong organic increase
of 22.4% due to US exit of Bonial, Performance Marketing with significant decline of 20.2% due to lower
incoming orders, negative FX effects especially from the US business and higher integration costs due to the
affilinet merger
Comments
Marketing Media development impacted by organic
EBITDA decline in Performance Marketing
15
1) Adjusted for consolidation and FX effects, as well as
IFRS 16 effects for adj. EBITDA.in €m 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 306.8 -8.9% 1.3% 89.0 -19.0% 0.8%
Advertising 227.9 -8.3% -0.8% 67.4 -14.5% 1.1%
Other 78.9 -10.7% 8.0% 21.6 -30.3% -0.1%
adj. EBITDA 62.7 11.4% 8.9% 16.0 0.6% 6.9%
Margin 20.4% 3.7pp 18.0% 3.5pp
Marketing Media
Overview Marketing Media Subsegments
16
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.2) Total adj. EBITDA includes costs of €6.2in 9M/18 and €6.6m in 9M/17 (thereof business development, M&A and other), not allocated to the two pillars.
in €m 9M/18 yoy org.1 Q3/18 yoy org.
1 9M/18 yoy org.1 Q3/18 yoy org.
1
Revenues 176.3 -22.2% -0.8% 46.7 -36.5% -1.4% 130.5 18.3% 4.8% 42.3 16.4% 3.6%
Advertising 150.6 -19.7% -2.7% 42.6 -27.9% -0.3% 77.3 26.7% 4.0% 24.8 25.6% 4.1%
Other 25.7 -34.2% 13.5% 4.1 -71.7% -13.4% 53.2 7.9% 5.7% 17.5 5.5% 3.1%
adj. EBITDA2 46.3 6.2% 22.4% 11.3 -7.8% 28.6% 22.6 17.4% -20.2% 6.7 13.9% -29.4%
Margin 26.2% 7.0pp 24.3% 7.6pp 17.3% -0.1pp 15.7% -0.3pp
Reach Based Marketing Performance Marketing
Marketing Media
Adjusted eps with strong increase in Q3/18
17
in €m 9M/18 9M/17 Q3/18 Q3/17
adj. EBITDA 541.4 473.4 186.9 156.1
yoy change
Depreciation / amortization (excl. PPA) -153.5 -100.0 -52.4 -34.1
adj. EBIT 387.9 373.4 134.5 122.0
Financial result -14.8 -7.7 -5.3 -6.0
Taxes -116.4 -121.2 -41.7 -41.1
adj. net income 256.7 244.4 87.4 74.9
thereof attributable to non-controlling interests 32.4 30.7 9.4 10.6
adj. eps1 2.08 1.98 0.72 0.60
yoy change (reported / organic)
Non-recurring effects 53.6 -31.3 -6.0 -14.1
Depreciation / amortization, and impairments of PPA -76.3 -73.8 -29.2 -21.2
Taxes attributable to these effects 13.4 24.1 9.6 6.8
Net income 247.4 163.4 61.9 46.4
14.4%
5.0% / 6.7%
19.7%
21.5% / 24.4%
1) Based on weighted average number of shares outstanding in 9M/18: 107.9m (9M/17: 107.9m).
Company presentation
Net financial debt higher because of IFRS 16 –
FCF in line with expectations
18
▪Net financial debt includes leasing liabilities of €359.6m (PY: €0.3m), thereof
€153.6m due to lease of Axel-Springer-Passage and high-rise headquarter in
Berlin since January 1, 2018
▪Net financial debt less effects from leasing liabilities €957.8m
Free cash flow (FCF) in €m Impact of leasing liabilities on net financial debt
1) Excl. pension liabilities. 2) Based on Bloomberg consensus for adj. EBITDA 2018.
Net financial debt of €1,317.4m1
in September 2018 (leverage 1.8x2)
226.3
268.5
220.9
280.3
9M/17 9M/179M/18 9M/18
FCF FCF excl. effects from headquarter real estate transactions
▪Net positive cash inflow of ~€165m until 2020 from sale of new Berlin building
(purchase price of €425m and tax payments of ~€30m expected in Q4/19 and
capex and sale related costs of ~€230m in 2018-2020)
Positive effects on cash flow going forward
Company presentation
Increased to:
Group guidance 2018 confirmed and increased for
adjusted eps
19
(adjusted for effects from the adoption of IFRS 16 as
well as consolidation and FX effects)
Revenues Low to mid single-digit % growth1
Low to mid single-digit % growth1
adj. EBITDA Low double-digit % growth Mid to high single-digit % growth
adj. eps Mid single-digit % growth2
High single-digit % growth3
Group
1) Revenue outlook based on 2017 revenues restated for negative effect of IFRS 15 adoption. 2) Previously: Low to mid single-digit % growth 3) Previously: mid to high
single-digit % growth
Company presentation
Segment outlook 2018: Guidance downgrade for
Marketing Media
20
Reported Organic(adjusted for effects from the adoption of IFRS
16 as well as consolidation and FX effects)
Classifieds
MediaRevenues Double-digit % growth Low double-digit % growth
adj. EBITDA Double-digit % growth High single-digit to low double-digit % growth
News
MediaRevenues Low to mid single-digit % decline Low single-digit % decline
adj. EBITDA Mid single-digit % growth Low to mid single-digit % decline
Marketing
MediaRevenues1 Low double-digit % decline2 Roughly on prior year level3
adj. EBITDA Mid to high single-digit % decline4 Low to mid single-digit % decline5
Services/
HoldingRevenues Mid single-digit % decline Mid single-digit % decline
adj. EBITDA Low to mid single-digit % growth6 Low to mid single-digit % growth6
1) Revenue outlook based on 2017 revenues restated for negative effect of IFRS 15 adoption. 2) Previously: High single-digit % decline. 3) Previously: High single-digit % growth. 4) Previously: High single-digit %
growth. 5) Previously: Low double digit % growth. 6) Improvement/smaller negative EBITDA.
Decreased to:
Company presentation
Classifieds Media
Classifieds Media: leading digital classifieds operator
Classifieds Media22
▪ Leading digital classifieds
operator
▪ Portfolio of market leading
classifieds: 76%1 of revenues
from #1 market positions
▪ Digital classifieds clear
beneficiary of structural shift
from offline to online
▪ Strong market positions
yielding high margins
Overview
Financials
Real Estate
▪ #1 in France
▪ #2 in Germany
▪ #1 in Belgium
Jobs
▪ #1 in Germany, Belgium
▪ #1 in UK
▪ #1 in Ireland, South Africa
Cars
▪ #1/2 in France
Generalist
▪ #1 in Israel
Vacation Rental
▪ #1 in Netherlands &
Belgium
Classifieds Media
2017 Outlook 2018 (reported) Outlook 2018 (organic2)
Revenues in €m 1,007.7 Double-digit % growth Low double-digit % growth
EBITDA (adj.) in €m 413.2 Double-digit % growthHigh single-digit to
low double-digit % growth
EBITDA margin (adj.) 41.0%
1) Based on FY/17 figures. 2) Adj. for effects from IFRS 16, consolidation and FX effects.
Classifieds with strong organic growth and high
underlying margins
Classifieds Media23
Revenues EBITDA margin, adj.
Margin 2015 2016 2017 9M/2018
Jobs 43.7% 42.9% 41.7% 38.4%
Real Estate 46.4% 44.9% 50.4% 47.7%
General/Other 30.7% 32.7% 32.0% 35.1%
Total classifieds 40.5% 40.3% 41.0% 39.7%
Organic growth
yoy 2015 2016 2017 9M/2018
Jobs +21.2% +17.6% +17.0% +16.4%
Real Estate +4.8% +6.3% +10.8% +6.3%
General/Other +4.0% +9.7% +6.3% +4.4%
Total classifieds +12.9% +12.5% +12.7% +10.8%
▪ Clear market leader in the UK in the new segment of
transactional digital real estate platforms, also active in
Australia, the USA and Canada
▪ April 2018: Purchase of 11.5 percent in Purplebricks
through capital increase and purchase of secondary
shares from existing holders; purchase price amounts
to a total of GBP 125m, corresponding to a price per
share of GBP 3.60
▪ July 2018: Increase to 12.5 percent paying GBP 3.07
per each additional secondary share (total of GBP 9m)
▪ Listed on the London stock exchange since Dec. 2015
▪ Board seat for Axel Springer
M&A in Classifieds Media: Recent announcements
Classifieds Media24
▪ One of the world’s leading employer branding
specialists, based in Stockholm
▪ It helps 2,000 companies in more than 35 countries to
monitor, define, develop and communicate their
employer brand.
▪ Purchase price amounts to ~SEK 400m (~€38m)
▪ Transaction closed in May 2018
Investment in Homeday to participate in innovative
business model in German real estate market
25
▪ Commission based business model
▪ Potential from additional revenue pool
50/50 holding company with UK market leader
Acquisition of 22% stake in Homeday in October 2018 (on
top of 4% owned by Axel Springer already)
Classifieds Media
The underlying markets of our assets show attractive
dynamics
Germany UK
Total online and offline marketing spend, 2012-2016 (in €m)Jobs
France Belgium
Real Estate
Germany
Online Mkt SpendOffline Mkt Spend
2012
29%
2016
50%
50%
1,170
71%
+2%1,091
21%
991
79%
906
64%
36%
781
52%
799
48%
+1%
35%
69%
31%571488
52%
48% 44%
92
56% 67%
8333%
Source: OC&C CAGR
+2%
2012 2016
2012 2016
65%
+4%
2012 2016 2012 2016
+3%
Classifieds Media26
The future of our markets: shift towards online
and constant growth continues
Germany UK
Total Marketing Spend by Channel, 2016-2020F (in €m)
Jobs
France Belgium
Real Estate
Germany
Online Mkt SpendOffline Mkt Spend
2016
50%
2020F
63%
1,447
50%+12%
1,170 15%
1,031
85%
991
79%
799
65%
903
77%
23%
723571
69%
102
67% 73%
92
Source: OC&C CAGR
2016 2020F
2016 2020F
72%
2016 2020F 2016 2020F
37% 21%
35% 28% 31%27%33%
+3%
6% 9% 5%
Classifieds Media27
Our assets have consistently outperformed their
respective online classifieds markets (2012 – 2016)
1) Organic (adjusted for consolidation and FX effects) revenue growth yoy, average, 2) OC&C: online classified marketing spend , 3) excl. Poliris, 4) Belgium: 2013-2016; 5) Incl. CVDB.
Jobs Germany 19.9%
Jobs UK 8.2%
Real Estate France 8.0%3
Real Estate Belgium 10.5%4
Real Estate Germany 1.3%
15.2%5
5.4%5
6.2%
7.7%
13.0%
Axel Springer organic revenue growth1 Total online classifieds growth2
One exception – prior to the merger:
Classifieds Media28
StepStone: High organic revenue growth
H1/18 Financials
▪ Swedish employer branding specialist Universum
acquired in Q2/18
▪ Start of ‘The Partnership’ (Totaljobs & Jobsite)
with joint offer in Q2/18
▪ Candidate delivery ahead of competition in nearly
all areas
▪ Main market Continental Europe continues to be
growth driver with increasing customer number
(+8%) and high retention rate at 88%1)
Operational update
29
1) Both figures per LTM Sept-18. 2) Minor revenues recorded centrally and attributable to few operational entities
(mainly Universum) are not presented since those are not recorded in operational subgroups. 3) Combined adj.
EBITDA of subgroups does not equal sub-segment as central costs (mainly non-licensed product development costs)
and a few entities (mainly Universum) are not recorded in operational subgroups. 4) Adjusted for consolidation and FX
effects, as well as IFRS 16 effects for adj. EBITDA.
in €m H1/18 H1/17 yoy organic4)
Revenues2) 279,5 230,5 21,3% 18,4%
Continental 191,8 152,5 25,8% 24,6%
UK 61,8 58,9 5,0% 7,4%
SAON Group 20,2 18,8 7,2% 9,9%
EBITDA3) 98,6 90,3 9,1% 2,1%
Continental 92,0 83,7 9,8% 6,1%
UK 5,5 8,8 -37,3% -52,4%
SAON Group 5,7 5,8 -2,5% -4,0%
Margin 35,3% 39,2% -3,9pp
Continental 47,9% 54,9% -7,0pp
UK 8,9% 14,9% -6,0pp
SAON Group 28,3% 31,1% -2,8pp
Continued strong double digit organic growth
474
410
23
20062005 2007
+29%
201120092008 20122010 2016201520142013 2017
Unemploy-
ment Office
Company
websites
Google base
referral sites
Craigslist Social
networksAgents Google
Jobs
Social
networksSocial
networks
Indeed /
Meta search
engines
Google /
Indeed
+18% +17%
organic growth
Lehman
Group Revenue (in €m)StepStone outperforms other players and has survived numerous
so called ‘disruptive business models’
30
Indeed /
CAGR – total: +29%
Jobs Marketing Spend1: Germany with double digit
growth forecast in Online Classifieds
31
(in €m)
1) Figures may not add up to total per year due to rounding / Source: OC&C.
Germany
Spend / Job €185 €212 €252
Turned Over Jobs 5.9m 5.5m 5.8m
3.4%
-1.5%
4.4%
1.0%
676
30
8 7
283
111,091
22
55
2020
1426
1,447
422
72
5858
29
767
2016
59
486
28 2523
512
1226
1,170
2012
Rev. Stream 12-16 16-20
Referral Schemes 2% 5%
Offline Branding -3% 0%
Recruitment Events 2% 5%
Print Classifieds -8% -3%
Online Branding 35% 24%
Professional Networks 37% 20%
CV Databases 2% 5%
Online Classifieds 16% 11%
CAGR
CAGR
+5%
+2%
Goal to become a comprehensive E-Recruiting
companyCareer
guidance
Search jobs
Browse jobs / be found
Research employer
Research salary
Application
Interview
Hire / Sign contract
Career
development
Orientation
Check cultural fitFollow-up
Applications
Future
Product portfolio
Job seeker journey
32
Companies are charged for listings and access to
candidate profiles
Highly scalable with low
total cost per hire for
recruiter
Job Listings
Targeted branding products to
help employers stand out among
our candidates
Employer Branding
Effective process to fill highly specific
positions, but high cost per hire and
difficult to scale for recruiter
Direct Search
20
08
Revenue share
20
17
(G
ER
/UK
)
88% 6% 6%
88% (98% / 61%) 10% (1% / 34%) 2% (1% / 5%)
33
▪ H1 margin impacted by investments in brand and traffic
▪ FY/18 margin (incl. IFRS 16) expected to be slightly
below prior year
320
257202159137
StepStone Continental continues to provide strong
organic growth
Revenue
StepStone
Continental
52%58% 58% 59%
56%
180
2015
151
2014
1179271
+24%
+16%
+27%
201520142013
+24%
+27%
+26%
+14%
EBITDA
Financial development by subgroup¹ (in €m)
Organic growth EBITDA Margin
34
2016
84+26%
152
+25%
20172
2013 2016 20172
H1/17 H1/18
192
+27%
H1/17 H1/18
48%55%
92
1) All subgroups adjusted to current company structure, minor revenue recorded centrally is not presented, non-licensed product
development costs are not recorded in operational subgroups, Universum (among others) is not allocated to one of the operational
subgroups. 2) Excluding meinestadt.de which was allocated to Jobs from General/Other in 2018.
StepStone holds #1 positions in candidate
delivery in most core markets Candidate Delivery¹ - StepStone Continental
Germany AustriaBelgium
35
1) Average # of applications per job ad. Source: TNS, figures are corrected for outliers.
3.0
3.5
3.7
3.9
4.9
5.5
5.9
14.9
Meinestadt
Indeed
Jobware
Monster
Stellenanzeigen
StepStone DE
3.5
4.1
5.7
6.9
7.6
7.8
13.3
Monster
Vacature
Jobat
Regiojobs
Indeed
StepStone BE
1.7
3.9
6.6
13.1
16.3
17.4
19.7
Indeed
Monster
kurier.at
StepStone AT
Karriere.at
derStandard
Increasing customer numbers and high retention
rates drive StepStone Continental
StepStone Continental
Customer number (k)1
1) Customer count based on active contracts in a year except StepStone Germany, meinestadt.de and TJG where end customer (listing owners)
are counted. 1st time inclusion: Ictjob (Q3/17), meinestadt.de and Turijobs (both Q1/18). 2) All subgroups reported based on pro forma development.
36
57.764.4
71.7
90.197.2
2015 2016 2017 LTMSept-17
LTMSept-18
CAGR+11%
+8%
Customer Retention Rate (%)2
StepStone Continental
Overall RetentionLarge customers
86% 88% 87% 88%
96% 97% 98% 98%
2015 2016 2017 LTMSept-18
StepStone
Continental
LTM figures are pro forma including
meinestadt.de, Turijobs and Ictjob
591191307860
Upside potential from introduction of joint offer in UK
25% 24%
29%
20%
13%
16
2015
24
2014
38
2013
1915
+/-0%
+29%
+67%
20172016201520142013
+7%+3%
+8%
+11%
▪ Totaljobs acquired early 2012, Jobsite late 2014
▪ Introduction of ‘The Partnership’ creates upside
potential from more attractive offer to customers and
also from synergy effects on the cost side (integrated
platforms and overhead functions)
▪ Investments in future growth impact margin
-8%
StepStone
UK
Revenue EBITDA
Financial development by subgroup¹ (in €m)
1) All subgroups adjusted to current company structure, minor revenue recorded centrally is not presented, non-licensed product development
costs are not recorded in operational subgroups, Universum (among others) is not allocated to one of the operational subgroups.
37
6
H1/18
62
+5%
2016 2017
118
H1/17
+7%
H1/18H1/17
9
9%15%
Organic growth EBITDA Margin
Customer number (k)2
1) Average # of applications per job ad. Source: TNS.2) Customer count based on active contracts in a year.
38
Customer Retention Rate (%)3
StepStone
UK
Candidate delivery1
2.8
4.2
10.7
11.6
14.7
17.0
23.1
Monster
CV Library
Reed
Jobsite
Indeed
TotalJobs‘The Partnership’ with negative technical impact on
LTM Sept-18 due to deduplication of contacts.
41.3
36.9
43.8
41.841.0
2015 2016 2017 LTMSept-17
LTMSept-18
CAGR+3%
-2%
Overall RetentionLarge customers
80% 82% 81% 80%
95% 95% 93% 93%
2015 2016 2017 LTMSept-18TotalJobs and Jobsite with
combined potential of 37.8
StepStone UK with high values in relevant KPIs
3) Retention rates LTM September 2018 temporarily affected by launch of ‘The Partnership‘ which caused phasing of contract renewals from
customers of both TotalJobs and Jobsite who decided to renew after expiry of both former contracts.
1193430
SAON Group provides double digit organic growth
rates and high margins
+678%
+30%+14%
2016201520142013
+11%+15%
+7%
▪ SAON Group acquired in late 2013, CareerJunction in 2015
▪ Growth in almost all countries around the world
3
SAON
Group
Revenue EBITDA
23 3430
Financial development by subgroup¹ (in €m)
1) All subgroups adjusted to current company structure, minor revenue recorded centrally is not
presented, non-licensed product development costs are not recorded in operational subgroups,
Universum (among others) is not allocated to one of the operational subgroups. Organic growth EBITDA Margin
39
38
2017
+10%
+11%
1
810 10
12
6 6
20%
37% 34% 30% 33%
0%
10%
20%
30%
40%
50%
0
2
4
6
8
10
12
14
2013 2014 2015 2016 2017 H1/17 H1/18
19 20
H1/17 H1/18
+10%
28%31%
+7%
4.1
8.7
9.5
17.1
17.5
22.3
NIJobs
Indeed
Irishjobs
Jobs.ie
South Africa2Ireland
Candidate Delivery¹ - SAON Group
40
13.4
33.7
48.7
65.5
153.9
Careers24
Indeed
CJ
Pnet219.439.8
1) Average # of applications per job ad. Source: TNS. 2) Results of competitors may be unstable across the surveys due to low sample sizes.
#1 positions in candidate delivery in most relevant
markets of SAON Group
72% 73% 74% 75%
82%88% 86% 88%
2015 2016 2017 LTMSept-18
Stable customer numbers and high customer
retention at SAON Group
StepStone Continental
Customer number (k)1,2
1) Customer count based on active contracts in a year. 2) Restated figures. Tecoloco companies now included in complete history.
Figures subject to adjusted counting methodology. 3) All subgroups reported based on pro forma development.
41
Customer Retention Rate (%)3
StepStone Continental
Overall RetentionLarge customers
SAON
Group 13.2
14.1
14.6 14.7 14.7
2015 2016 2017 LTMSept-17
LTMSept-18
CAGR+5%
0%
SeLoger margin decline due to consolidation of
Logic-Immo
H1/18 Financials
▪ Closing of Logic-Immo acquisition in Q1/18
▪ Joint product offering of SeLoger and
Logic-Immo started in September 2018
▪ SeLoger ARPA (incl. verticals) increases by
6% yoy to €762 in 9M/18
▪ # of professional listings1) on Seloger.com: 995k
(Logic-Immo: 720k, pre deduplication)
▪ Unique users2) of seloger.com up 5% to 5.8m,
unique user of logic-immo.com +3% to 2.9m
Operational update
42
3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA
in €m H1/18 H1/17 yoy org.3)
Revenues 103.9 69.5 49.5% 4.3%
EBITDA 48.9 40.4 21.1% 6.9%
Margin 47.1% 58.2% -11.1pp
1) Source: autobiz; monthly listings, 9M/18 average2) Source: Médiametrie 9M/18 vs 9M/17
1) Sales of individual houses and apartments sold by the unit, excluding any professional premises, whole multi -apartment
buildings and ancillary premises (cellars, parking spaces, fractions of common condo property, etc.) sold separately.2) Organic (adjusted for consolidation and FX effects) revenue growth yoy average, excl. Poliris.
Source: OC&C, Conseil Général de l’Environnement et du Développement.
Structural tailwind in French real
estate market supports…
French real estate classifieds recovery drives
expansion of marketing budgets
LTM cumulated existing home sales transactions in k, 02/2012 – 08/2018, France1
…growth in all online channels beyond classifieds
In €m
799
22%
14%
20%
2012
781
17%
27%
21%
CAGR+3%CAGR
+1%
2020F
47%
25%
9%
19%
2016
903
Online
Offline
750
Aug 18
1,000
500
Feb 12
Other Offline Advertising
Print Advertising
Other Online Advertising
Online Classifieds
35% 43%
-14%
-1%
CAGR
(12-16)
+6%
+7%
-8%
+1%
CAGR
(16-20F)
+5%
+6%
+8%2
43
Source: SeLoger1) excl. effects of Poliris business, deconsolidated in 2016.
Constant roll-out of new products has been valued
by customers
Growth in core and verticals drive SeLoger’s
profitability
Average monthly ARPA made with professional customers, in €
Historical Revenue and EBITDA performance
Revenues and EBITDA in €m1
2011 2012 2013 2014 2015 2016
8091
98106
116128 140
69
104
4353 58 62
71 76 82
4049
+9%
+9%
CAGR
2011-2017
676
594424 456496 549
615
382 406 440 483544
SeLoger excl. verticals
SeLoger incl. verticals
CAGR
+10%
44
2017
632
724
EBITDARevenues
2011 2012 2013 2014 2015 2016 20179M/18
400
800
0
660
762
628
719
9M/17
+5%
+6%
H1/18H1/17
Source: autobiz
SeLoger: Leading market position in professional
real estate in FranceAverage of monthly listings 9M/18 in k1
995
1,276
766720
543523
972
private listings
45
+2%
SeLoger and Logic-Immo: Merger of two strong
French real estate brands
Joint product offering launched in September 2018
Google Trends analysis on keyword “Logic Immo” in 20173
2.8
5.7
Google Trends analysis on keyword “Seloger” in 20172 Unique users in m1
high
low
high
low
€140m
in revenues
in 2017
€70m
in revenues
in 2017
Source: Google Trends, Mediametrie, SeLoger, SPIR.1) Unique users, global users in m, Q3/2018.
46
2) SeLoger indexed to keyword request “Seloger” for Île-de-France.3) Logic-Immo indexed to keyword request “Logic Immo” for Provence-Alpes-Côte d’Azur.
Immowelt: Margin significantly up at 40%
H1/18 Financials
▪ ARPU increases by 12% yoy to €324 in 9M/18
▪ 20.8k DUO customers in 9M/18 (+/-0% yoy)
▪ Visits1) at 43.3m (+/-0% yoy)
▪ # of residential listings1) at 173k (-11%) yoy
Operational update
47
2) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA1) Source: company information; monthly visits/listings, 9M average
in €m H1/18 H1/17 yoy org.2)
Revenues 58.2 54.3 7.3% 7.3%
EBITDA 23.3 18.3 27.7% 23.7%
Margin 40.1% 33.7% 6.4pp
+3% annual growth in agent
commission pool until 2020 ...
Positive outlook for online property portals –
9% annual growth in Germany expected until 2020... fuels favourable marketing spend
for online property portals
Agent commission pool (bn €) Property marketing spend (in €m)
+6%
+4%
2020F
723
2016
571
2012
488
CAGR
16-20F
+2%
+10%
-4%
+9%
+3%
+6%
Sales
Rental
2020F
6.4
5.7
0.7
2016
5.7
5.1
0.6
2012
4.5
3.7
0.8
Other offline adv.
Other online adv.
Print adv.
Online portals
407
287176
CAGRSources: Immowelt, OC&C (German residential real estate only).
48
DUO migration completed in 2017 at low customer churn
Number of agents in Germany2
IS24 core agents
IW non-DUO agents
IW DUO agentsNote: Definitions of IW DUO agents and IS24 Core Agents are aligned1) DUO: 1 contract, 2 portals (immowelt.de, immonet.de); Germany only.
2) Real estate professionals with a term contract (term usually 12 months)
Sources: Immowelt, IS24.
49
0
20
16
12
4
8
24
Mar-17
20.5
Dec-16
[k]
22.6
11.1
Dec-15
22.9
19.4
7.4
Sep-15
23.3
20.0
4.3
17.0
19.3
Sep-16
22.6
17.4
17.4
Jun-16
22.3
17.6
14.7
Mar-16
22.1 22.8
17.4 17.2
21.2
22.4
Jun-17
22.0
21.4
Sep-17
17.0
Dec-17
22.0
17.5
21.5
18.5
21.0
21.4
Mar-18
21.7
Jun-18
20.7
Sep-18
19.9
19.7
Customer number below prior year level
9M/17 9M/18
Declining listings due to tight German residential market
Strong #2 position for residential listings
Average number of residential monthly listings (k)1
1) House/ flat/ lot to rent or buy in Germany only
Note: Direct comparability of snapshot listing figures limited due to different listing models of IW and IS24 (while IW agents usually rotate listings, IS24 agents usually don’t). Sources: Management estimates, internal data.
50
300k
200k
100k
0k
IS24
IW
-11%
-5%
Immowelt with strong ARPU growth ...
Immowelt‘s ARPU increased steadily over
last quarters... but below main competitor
1) Average Revenue Per User: monthly revenues, divided by the number of agents
(Immowelt Group DUO and non-DUO agents in Germany with a term contract).
ARPU (€/month)1 ARPU (€/month)1
Sources: Immowelt, IS24
+13%
Q3/18Q2/18Q1/18Q4/17Q3/17 Q4/17
€787
€306
€338€320€314€306€300
IS24
51
2016 2017 2018F 2019F
Substantial revenue growth Margin target of > 40% in 2019
Revenue (in €m) EBITDA (% of revenue)
52
+7.3%
H1/17 H1/18
€54.3m€58.2m
34%
40%
Revenue
EBITDA margin
>40%€19.4
€37.4
20%
34%
Immowelt with strong EBITDA improvement
2018
Outlook: Continuous growth in brand awareness,
performance, revenues and EBITDA
Financial outlook
EBITDA margin to increase
to >40% in 2019 after
brand investment phase
Profitability
Operations
Marketing Continue with significant
marketing efforts
Increased focus on
products for lead generation
€
53
Immoweb with high single-digit revenue growth and
strong margin
H1/18 Financials
▪ ARPA increases by 5% yoy to €540 in 9M/181)
▪ # of listings1) up by 6% yoy to 153k
▪ Real visitors2) down by 5% with a monthly
average of 1.5m in 9M/18
Operational update
54
1) Source: company information, 9M/18 average.2) Source: CIM, 9M/18 average.
in €m H1/18 H1/17 yoy org.3)
Revenues 21.8 20.0 9.2% 8.9%
EBITDA 14.1 13.1 8.0% 8.0%
Margin 64.8% 65.5% -0.7pp
3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA
Solid market growth over the last decade translated
into online marketing budgets
Source: Statistics Belgium, OC&C.
Sales Transactions Index
Average Sales Price Index
Indexed property sale transactions in Belgium, 2005–2016, 2012 = 100 Property Marketing spend by channel, in €m
130
100
70
201620142012201020082006
109
102
Other Offline Advertising
Print Advertising
27%
17%
83
14%
42%
2020F
102+3%
17%
2012
18%92
2016
22%
56%51%
+3%
-3%
CAGR
(12-16)
CAGR
(16-20F)
-2%
+6% +4%
-7% -2%
+8% +5%
+11%
16%
11%9%
Online
Offline
Other Online Advertising
Online Classifieds
Belgian property market is very stable… …and relevant budgets are expected to expand
CAGR 2013-2016
55
Immoweb: THE reference for property search
“Belgians have a brick in their stomach…”
Home ownership rate by country in 2016
…and when it comes to real estate, 8 out of 10 Belgians
think of Immoweb
Unaided awareness questionnaire with 7.2k respondents in 09/2016
Source: OC&C, Produpress study, Eurostat1) Latest available 2014.
BelgiumFranceGermany1
58%
46%
70%
78%
2%6%
x12.4
56
+24pp
Immoweb attracts almost twice as many visitors than
#2 competitor…
Average of monthly real visitors in 9M/181
…leading to strong and highly engaged traffic on
Immoweb
Average of monthly audience statistics on Top3 RE portals in 9M/181
Source: CIM, Statistics Belgium. 1) Selected players (excl. app traffic).
1.9x 2.0x
22%
Visits
20%
15m
58%
81%
10%
153m minutes
Time spent
9%
57
Immoweb outraces Belgian competition
in market reach
2731
3336
40
20 2216
2022
25 26
13 14
2013 2014 2015 2016 2017 H1/17 H1/18
350 385 410 460 514 515 540
CAGR
+10%
Immoweb: Consistent revenue and EBITDA growth
Successful growth of ARPA over the
last years...
Weighted average monthly ARPA from professional
customers, in €
...results in strong revenue growth at leading EBITDA margins
in €m
2017201620152014
61% 64% 67% 70%
EBITDA EBITDA margin
Going forward, Immoweb expects mid to high single-digit revenue growth and to maintain their margins.
CAGR
+10%
Revenues
58
9M/17
67%
9M/18
+5%
2013
66% 65%
Car&Boat Media: Organic growth driven by ARPU
increase
H1/18 Financials
▪ ARPU up by 11% yoy to €451 in 9M/18
▪ # of professional customers1) slightly (-1%)
below prior year at 8.4k
▪ # of professional listings1) down by 1% yoy
to 271k
▪ Unique visitors2) up by 19% to 4.5m
Operational update
59
1) Source: company information; monthly, 9M/18 average2) Source: Mediametrie (9M/18 vs 9M/17); limited comparability of 9M/18 figures to prior-
year period due to new methodology regarding the measurement of mobile traffic
introduced by Mediametrie in 9M/18
in €m H1/18 H1/17 yoy org.3)
Revenues 31.3 29.5 6.2% 6.2%
EBITDA 15.2 13.7 10.4% 7.2%
Margin 48.4% 46.5% 1.8pp
3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA
19
32447
271
LaCentrale works with professionals
that have a significant used car activity
Sources: Company Information1) Professional ads divided by # of professionals on platform.
Professional listings Listings per professional1
-39% +68%
(in k, monthly average 9M/2018) (in k, monthly average 9M/2018)
60
1) Listings are based on 9M/18 figures.
298
27
461
447271
907
Stable traffic and listings development versus
next competitor
Sources: Company Information.
Total listings
(in k, monthly average)1
Traffic development since Apr. ’15
(Index = 100)
Listings development since Apr. ’15
(Index = 100)
Private
Professional
20162015 2018
4.5m12.0mTraffic
9M/2018
61
201720162015 20182017
Carboat Media has benefited from constantly
growing monetization
Monthly customers
Monthly ARPU (in €)
62
* CAGR 10/13-09/18.
Source: Company Information.
240
290
340
390
440
490
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
Avg. ARPU
growth 7%*
8,280
€463
Jan 2009 Sept 2018Sept 2013
CAGR+14%
Carboat Media developed its EBITDA positively
since AS acquisitionRevenues & EBITDA (in €m)
2012
20.8
48.2
2011
18.7
45.2
2016
24.3
55.2
2015
20.9
52.1
2014
20.9
50.5
2013
20.3
48.5
Revenues
EBITDA
CAGR+4%
Market professionalization and product innovation to drive mid-single
digit revenue and EBITDA growth
AS acquisition: July 2014
2017
63
59.4
27.0
H1/17 H1/18
29.5 31.3
15.213.7
+10%
Yad2 with headwind from FX and slower organic
growth due to difficult real estate market
H1/18 Financials
▪ # of listings: 413.8k (-4% yoy) in 9M/18
▪ Unique visitors down by 13% to 2.4m
(9M/17: 2.7m)
▪ Visits down by 7% to 11.2m (9M/17: 12.1m)
Operational update1)
64
1) Source: company information; monthly listings/UVs/visits
in €m H1/18 H1/17 yoy org.2)
Revenues 18,9 20,1 -6,0% 1,1%
2) Adjusted for consolidation and FX effects
Yad2 is best positioned to further grow its
business along three strategic initiatives
Israel’s #1 Generalist
#1
Real Estate#1
Second Hand
Become #1
in Jobs
#1
Cars
1
1 Organic Growth
Getting closer to the transaction
Explore adjacent opportunities
2
3
Comission-based
business models
New car &
tire sales
Commercial &
luxury real estate
Financing, loans,
insurance products
65
Strong network effects provide Yad2‘s customers
with significant liquidity and reach
Sources: 1) Company Information, 2) Similarweb, desktop & mobile traffic
(in k, monthly average 9M/18)1
Visits(in m, monthly average 9M/2018)2
7.5
>2x
>9x
414187 143 76 8
2nd Hand Real Estate Cars Jobs
66
>23x
>25x
11.2
Listings
28% 25% 13%
Yad2 revenues impacted by regulatory changes in
real estate and negative FX in 2018Revenue Development
18.4
2016
34.9
2015
26.9
20141
Revenues in €m
Organic YoY growth
Sources: Company Information, Drushim acquisition closed in Sept. 2015.1) 2014 represents FY as AS acquisition closed in May.
Leading revenue stream impacted by
regulatory changes
Second largest revenue stream. Since 2013
paid classifieds product for car dealers
Gaining importance since Drushim acquisition
in 2015 with goal of becoming clear #1
67
9%
2017
40.0
H1/17 H1/18
20.1 18.9
1%
@Leisure with improved performance following
slow start to the year
H1/18 Financials
▪ Full service (Belvilla, Land & Leisure):
pro forma booking value1) down in 9M/18 by
10% yoy to €177m
▪ Self service (Traum-Ferienwohnungen):
total listings2) in Europe up in 9M/18 by
10% yoy to 84k
▪ Disposal of casamundo in Q3/18
Operational update
68
1) Source: company information2) Source: company information, 09/17 vs. 09/18
in €m H1/18 H1/17 yoy org.3)
Revenues 73.2 69.1 6.0% 2.7%
EBITDA 17.1 14.9 14.5% 3.4%
Margin 23.3% 21.6% 1.7pp
3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA
Homeowner
Secondary
homes
Primary
homes
@Leisure focuses on the supply/homeowner side of
the market
Guest
Source: Company information per Q3/18.
Full-service
>31k Inventory
Self-service
>84k Inventory
69
Aggregator
Note: Graph shows simplified competitive landscape. Because of hybrid models, landscape is more complex than depicted.
Companies offer differing service levels, take rate
increasing with the service level
30% 50%2% 15%
Take
rate
Full-service
Self-
Service
Self Service
Full Service
Content
management
Key Exchange
and cleaning
Customer
Service
Calendar
Management
Booking, Invoice &
Cash Collection
Acquisition of
Guests
Acquisition of
Homeowners
Additional services
Pricing
management
70
Consolidation opportunity: home owner side with low
degree of digitization and professionalism
Source: Phocuswright, Radius Global Market Research (2011).
Share of (professionally) marketed vacation rentals is low in a very fragmented industry
Holiday homes in Europe (in m)
Total vacation homes in Europe Marketed by owner /
Self-service
Not actively
marketedNot for rent Marketed professionally
/ Full-service
~13% ~3%1/3 of inventory
potential for
active marketing
by owners or
professionals
248
10
4
2
Approximate
inventory share
of leading player
71
Additional
potential for
professional
marketing
@Leisure with “buy and build” strategy
@Leisure full year revenue and EBITDA Notes
▪ H1 with higher revenues and EBITDA (margin) due to
seasonality (Q1 strongest quarter in vacation rentals)
▪ Outlook: Further investments into post-merger
integration, data and product offerings in 2018, mid-term
return to ~20% EBITDA margin
Revenue as reported EBITDA as reported
20162015
55
1411
90
Revenue: >1.5x in next 3-5 years1
EBITDA: >2.0x in next 3-5 years1
20% 15%
x% EBITDA margin
72
16%
2017
125
19
1) Based on FY/16 figures.
H1/17 H1/18
22%
69
15 23%
73
17
News Media
News Media segment at a glance
News Media74
▪ Focus on market-leading media
brands with clear path to digitization
▪ National News Media dominated by
unique asset BILD
▪ Presence in English-speaking media
market with Business Insider and
eMarketer
▪ Innovative mobile news service for
Samsung devices (upday)
▪ Guidance for stable EBITDA (adj.)
in News Media in a range between
€225m - €245m for 2017-20191
Overview
▪ BILD group
▪ WELT group(formerly: WELTN24 group)
▪ Business Insider
▪ eMarketer
▪ upday
▪ Ringier Axel Springer Media
(Poland, Hungary, Serbia, Slovakia)2
▪ Ringier Axel Springer Schweiz3
National International
News Media
(Main activities)
2) Fully consolidated (50% stake) 3) Consolidated at equity 4) Adj. for effects from IFRS 16, consolidation and FX effects
Financials2017 Outlook 2018 (reported) Outlook 2018 (organic4)
Revenues in €m 1,509.8Low to mid
single-digit % declineLow single-digit % decline
EBITDA (adj.) in €m 218.8 Mid single-digit % growthLow to mid
single-digit % decline
EBITDA margin (adj.) 14.5%1) Including changes from the adoption of IFRS 16 and
corresponds to previous range of €205m - €225m.
0
100.000
200.000
300.000
400.000
500.000
600.000
May-14 Jan-15 Sep-15 May-16 Jan-17 Sep-17 May-18
Monetizing content in digital: positive development
News Media75
Digital subscribers
Source: IVW
+10.7% September 2018
vs.
September 2017
82,411
411,431
52,672
200,571
4356
81
2015 2016 2017
▪ #1 global business publication by reach
▪ Major business news website in the US
(founded 2007)
▪ Total reach of 123.9m monthly unique users and an
average of 3.1bn video views per month in 2017
▪ Acquisition in 2015, based on a company valuation
(cash/debt free) of $390m (~€348m)
▪ Revenues up by 46% in FY/17 yoy
▪ Revenues to grow >30% (CAGR 2015-20),
break-even excl. IFRS 16 effects targeted for H2/18,
break-even incl. IFRS 16 effects achieved in H1/18
Company profile Revenue development in $m
Business Insider – another year of strong growth
in 2017
News Media76
+30%
+46%
CAGR2015-17
+38%
AS acquisition: Oct 2015
eMarketer – leading provider of high-quality research
and digital market data for companies and institutions
77
▪ Founded in 1996; based in New York City
▪ ~1,200 corporate subscribers (2/3 of Fortune 500 and
2/3 of US top national advertisers)
▪ ~10,000 citations in worldwide media per month
▪ Revenues to grow double-digit* (CAGR 2015-19),
EBITDA margin to reach 40%+ until 2019 (from 30% in
2015)
Company profile High customer satisfaction and retention
News Media
73.7 76.3
91.6 89.183.3
78.3
103.298.1
2016 2017 2016 2017
1) As of December 31. Source: Company information.
Limited Seat Open Access
Renewal Rate (in %)
by subscription type1
Recapture Rate (in %)
by subscription type1
* Based on FY/15 revenues of $45.5m.
upday – Europe‘s biggest mobile news service
News Media78
▪ Strategic partnership to develop mobile news services
exclusively for Samsung devices
▪ #1 news app in Europe
▪ Delivering up to 10% of publishers’ mobile traffic
▪ Advertising for a targeted audience with non-intrusive
formats
▪ More than 20 million monthly users on major Samsung
smartphones (flagships, A-series and J-series)
▪ Expansion onto other Samsung devices (Tablets, Smart
TV, Family Hub fridges)
Company profile European Footprint
Editorial offices since 2016 Editorial offices since 2017
Country editions launched in 2017Country editions launched in 2016
Marketing Media
Marketing Media segment at a glance
Marketing Media80
▪ #1 positions in all major
marketing business models
▪ European market leader Awin
in performance marketing
merged with affilinet
▪ Sale of aufeminin closed as of
end of April 2018
Overview
Financials
▪ Idealo
▪ Bonial
▪ Finanzen.net
▪ Awin
Reach Based Marketing Performance Marketing
Marketing Media
(Main activities)
2017 Outlook 2018 (reported) Outlook 2018 (organic1)
Revenues in €m 984.5 Low double-digit % decline2,3 Roughly on prior year level2,4
EBITDA (adj.) in €m 95.6 Mid to high single-digit decline5 Low to mid single-digit % decline6
EBITDA margin (adj.) 9.7%
1) Adj. for effects from IFRS 16, consolidation and FX effects. 2) Revenue outlook based
on 2017 revenues restated for negative effect of ~€500m from IFRS 15 adoption.
3) Previously: High single-digit % decline. 4) Previously: High single-digit % growth.5) Previously: High single-digit % growth. 6) Previously: Low double-digit % growth.
Sale of aufeminin closed at highly attractive
purchase price
Marketing Media81
Deal terms
▪ Dec. 12, 2017: Put option agreement signed
with Télévision Française S.A. (TF1) for the
78.43% stake in aufeminin
▪ Price per aufeminin share of €38.74
corresponded to premium of 45.7%
▪ Highly attractive purchase price for Axel
Springer stake of €286.1m1, corresponding
to 15x EV/EBITDA (2017)
▪ Closing of aufeminin sale
as of end of April, 2018
1) Final purchase price of €291.5m includes customary interest rate payments
since signing in December 2017.
Transaction history and rationale
▪ 2007
▪ Acquisition of majority stake of▪ One of the first digital investments of
Axel Springer
▪ 2007 to 2016
▪ High value added through our network –Strong growth and international expansion
▪ Additionally supported through add-onacquisitions
▪ 2017 – entering the next growth phase▪ Sale to TF1 enables next step in aufeminin‘s
development
Marketing Media82
Merger of AWIN and affilinet strengthens competitive
position in Europe
Two leadingperformance
marketingnetworks havejoined forces to
drive futuregrowth and innovation
The leading European performance marketing network,
present in 13 countries with 6,000 advertisers
A leading European performance marketing network,
present in 7 countries with 3,500 advertisers
▪ Transaction closed in October 2017, IPO envisaged after period of integration
▪ Holding structure: 80% Axel Springer, 20% United Internet
Further information
▪ Sustainability Report is published every two years
(available on corporate website)
▪ Comprehensive information on corporate governance
as well as responsibility and sustainability are
available on corporate website
▪ Participation in relevant ESG / SRI ratings
Axel Springer delivers constantly and successfully
on ESG issues
Company presentation84
Overview
Rating / evaluation Last review
CDP D (from A to D-) 2017
FTSE4Good 3.8 out of 5 2018
ISS Environment
QualityScore
3 out of 10
(the lower, the better)10/2018
ISS Governance
QualityScore
4 out of 10
(the lower, the better)10/2018
ISS Social
QualityScore
2 out of 10
(the lower, the better)10/2018
ISS-oekom C+ (from A+ to D-) 2018
MSCI1 A (from AAA to CCC) 2018
Sustainalytics 68 out of 100 2017
1) In 2018 , Axel Springer SE received a rating of A (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment.
High transparency regarding ESG issues
Investor Relations contacts
Company presentation85
Claudia Thomé
Co-Head of Investor Relations
Phone: +49 30 2591 77421
Mobile: +49 160 90445035
Axel Springer SE: Axel-Springer-Str. 65, 10888 Berlin, Germany, Fax: +49 30 2591 77422
Daniel Fard-Yazdani
Co-Head of Investor Relations
Phone: +49 30 2591 77425
Mobile: +49 151 52844459