Company presentation - Axel Springer SE · 19/01/2019 · 2 Company presentation This document, which has been issued by Axel Springer SE (the "Company"), comprises the written materials/slides

Company presentationJanuary 2019

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


61%28%

11%

▪ 81%1 of adj. EBITDA from digital

activities

▪ Classifieds with further double-

digit top-line growth and high

margins

▪ Stable adj. EBITDA for News

Media expected 2017-2019

▪ Focus on classifieds and content

▪ Strong underlying FCF and

positive effect from real estate

transactions

▪ High dividend yield and payout

ratio (2017: 77%)

Investment 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


digital

Revenues adj. EBITDA

digital

69% 81%

Looking back – strong execution on key messages


More disclosure on classifieds

▪ Strong organic revenue growth of 10.8% in 9M/18,

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

▪ 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 – focus on organic development

going forward

▪ Insider Inc.: organic revenue CAGR 2015-17 of 38%

▪ Break-even for Insider Inc. on track 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.

9M/18 adj. group EBITDA up 14.4%, organic increase

of 6.7%

6

▪ 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

7

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


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

88

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


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

Real Estate classifieds with further good

development in Q3/18

99

▪ 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


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



Classifieds Media

General/Other with better margin in Q3/18

1010

▪ 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



Classifieds Media

News Media revenues only slightly below prior year

11


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 Insider Inc.

▪ Adj. EBITDA reported on prior year level, driven mainly by effects from IFRS 16 (organically down 8.8%)

Comments


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

12

1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.


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

13

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

14

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.


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

15

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).


Net financial debt higher because of IFRS 16 –

FCF in line with expectations

16

▪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


Investments of ~€200m in early-stage portfolio since

2012

17

Selected Cases

Gain market insights and know-how

Learn about potential disruptors

Create early M&A access points

Financial upside

The strategic reasons for corporate early-stage investments

I

II

III

IV

Company presentationCompany presentation

Reported Organic(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

Increased to:

Group guidance 2018 confirmed and increased for

adjusted eps

18

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.


Segment outlook 2018: Guidance downgrade for

Marketing Media

19

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:


Classifieds Media

Classifieds Media: leading digital classifieds operator

Classifieds Media21

▪ 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


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


1) Based on FY/17 figures. 2) Adj. for effects from IFRS 16, consolidation and FX effects.

In 9M/18, digital classifieds contributed 61% to

adj. Group EBITDA

22

392448

499454

507559

595646

1765

134164

218

305355

413

2010 2011 2012 2013 2014 2015 2016 2017

Adj. EBITDA1 in €m

57% 58% 61%

+15%

Long-term adj. Group EBITDA development driven by classifieds

Axel Springer Group

Axel Springer Classifieds

Share of Group EBITDA (negative EBITDA S/H allocated proportionally to operative segments)X%

Classifieds Media

473

541

308354

9M/2017 9M/20189M/17 9M/18

1) excl. discontinued operations.

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

Minority investments in hybrid agent models

Classifieds Media24

▪ 50/50 holding company with UK market leader

Purplebricks

▪ Acquisition of 22% stake in Homeday in October 2018

(on top of 4% owned by Axel Springer already)

▪ Commission based business model

▪ Potential from additional revenue pool

▪ Participation in innovative business model in German

real estate market

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 (05/2017) CAGR

+2%

2012 2016

2012 2016

65%

+4%

2012 2016 2012 2016

+3%

Classifieds Media25

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 (05/2017) CAGR

2016 2020F

2016 2020F

72%

2016 2020F 2016 2020F

37% 21%

35% 28% 31%27%33%

+3%

6% 9% 5%

Classifieds Media26

StepStone: High organic revenue growth

9M/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

27

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) Including meinestadt.de which was

allocated to Jobs from General/Other in 2018 5) Adjusted for consolidation and FX effects, as well as IFRS 16 effects

for adj. EBITDA.

in €m 9M/18 9M/174) yoy organic

5)

Revenues2) 431.6 359.2 20.2% 16.4%

Continental 299.3 243.1 23.1% 22.3%

UK 92.4 88.1 4.9% 6.3%

SAON Group 30.3 28.3 7.2% 9.5%

EBITDA3) 165.7 146.4 13.2% 6.6%

Continental 153.8 136.8 12.4% 9.2%

UK 11.7 13.0 -9.7% -25.8%

SAON Group 9.2 9.5 -3.9% -5.6%

Margin 38.4% 40.7% -2.4pp

Continental 51.4% 56.3% -4.9pp

UK 12.7% 14.8% -2.0pp

SAON Group 30.2% 33.7% -3.5pp

28

108 111123 131 135 143 154

42 46 54 55 47 5267

0

5

10

15

20

25

0

50

100

150

200

250

300

350

in %

Q1/17

in €m

16%14%

Q2/17 Q3/17

22%

16%

Q4/17

19%

Q1/18

17%

Q2/18

14%

Q3/18 Q4/18

Group revenue and organic growth (€m)

▪ 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

▪ H1/18 EBITDA decreased due

to investments in brand and

candidate delivery

EBITDAOrganic revenue growth Revenue

+17% +~17%

StepStone Group: Full year organic growth

expected on prior year level

Note: meinestadt.de included from Q1/18 following re-allocation to Jobs (from General/Other).

29

410

496

2010 201820122005 20112007 20082006 2009 2013 2014 2015 2016 2017 ¹

+29%

17% ~17%

organic growth

StepStone Group Revenue (in €m)

Continued double-digit organic growth expected

for 2018

1 Including meinestadt.de which was allocated to Jobs from General/Other in 2018.

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

Job seeker journey

30

JOB SEEKER JOURNEY

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

2008

Revenue share

2017

(GE

R/U

K)

88% 6% 6%

88% (98% / 61%) 10% (1% / 34%) 2% (1% / 5%)

31

343257202159

StepStone Continental: Continued strong

organic growth

Revenue

StepStone

Continental

58% 58% 59%54%

186

2015

151

2014

11792

+33%

+27%

20152014

+24%

+27%

+26%

EBITDA

Financial development by subgroup¹ (in €m)

Organic growth EBITDA Margin

32

2016

137

+23%

243

+22%

20172 2016 201729M/17 9M/18

299

+27%

9M/17 9M/18

51%56%

154

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) Including meinestadt.de which was allocated to Jobs from General/Other in 2018.

StepStone Continental: #1 positions in candidate

delivery in most core markets Candidate Delivery¹ - StepStone Continental

Germany AustriaBelgium

33

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

Xing

Meinestadt

Indeed

Jobware

Monster

Linkedin

Stellenanzeigen

StepStone DE

3.5

4.1

5.7

6.9

7.6

7.8

13.3

Monster

Vacature

Linkedin

Jobat

Regiojobs

Indeed

StepStone BE

1.7

3.9

6.6

13.1

16.3

17.4

19.7

Linkedin

Indeed

Monster

kurier.at

StepStone AT

Karriere.at

derStandard

StepStone Continental: Increasing customer

numbers and high retention rates

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; based on invoiced sales.

34

57.764.4

71.7

90.197.2

2015 2016 2017 LTMSept-17

LTMSept-18

CAGR+11%

+8%

Customer Retention Rate (%)2


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 iciformation

8811813078

StepStone UK: Upside potential from

‘The Partnership’

24%

29%

20% 13%

16

2015

24

2014

38

19

+/-0%+67%

2017201620152014

+7%+3%

+8%

▪ 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 (e.g.,

integrated platforms and overhead functions)

-8%

StepStone

UK

Revenue EBITDA


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.

35

12

9M/18

92

+5%

2016 2017

119

9M/17

+6%

9M/189M/17

13

13%15%

Organic growth EBITDA Margin

‘The Partnership’: From separate companies, brands and cultures to one unified organization

36

Market facing effects

▪ One company, one platform, one sales force

▪ More compelling business proposition

▪ One CV-database

▪ Best-in-class candidate delivery

Internal effects

▪ Efficient traffic sourcing

▪ Cost efficiencies

▪ Improved IT development effectiveness

Resulting in

▪ Improved retention and share of wallet

▪ Accelerated new business

▪ Wider market coverage

KPI Jobsite Totaljobs Partnership1

# Applications /

month1.5m 3.8m 6.3m

Conversion rate

(appl./ visit)0.22 0.25 0.26

CV database 3.8m 11.8m 18.3m

LinkedIn2: ~25m

CV-

Library2:~13m

Reed2: ~11m

Oct. 2017 Oct. 2018

1) Incl. StepStone UK verticals.2) Linkedin: number of registered users

per Oct 2018 (source: Statista); CV-

Library and Reed numbers as stated

on respective websites per Nov 2018.

Customer number (k)2

1) Average # of applications per job ad. Source: TNS, figures are corrected

for outliers. 2) Customer count based on active contracts in a year.

37


StepStone

UK

Candidate delivery1

2.8

4.2

10.7

11.6

14.7

17.0

23.1

Linkedin

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%


80% 82% 81% 80%

95% 95% 93% 93%

2015 2016 2017 LTMSept-18TotalJobs and Jobsite with

combined potential of 37.8

StepStone UK: High values in relevant KPIs

3) Changed business focus of Jobsite after acquisition, removed low value contracts. 4) 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; all subgroups reported based on pro forma development; based on invoiced sales.

3

1193430

+30%+14%

201620152014

+11%+15%

▪ SAON Group acquired in late 2013, CareerJunction (South Africa) in 2015

▪ Growth in almost all countries around the world

SAON

Group

Revenue EBITDA

23 3430


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

38

38

2017

+10%

+11%

8 10 10 12 10 9

37%

34% 30% 33%

0%

10%

20%

30%

40%

4

6

8

10

12

14

2014 2015 2016 2017 9M/17 9M/18

28 30

9M/17 9M/18

+9%30%

34%

+7%

SAON Group: Strong organic growth rates

4.1

8.7

9.5

17.1

17.5

22.3

Facebook

Linkedin

NIJobs

Indeed

Irishjobs

Jobs.ie

South Africa3Ireland

Candidate Delivery¹ - SAON Group

39

13.4

33.7

48.7

65.5

153.9

Linkedin

Careers24

Indeed

CJ

Pnet

1) Average # of applications per job ad. Source: TNS, figures are corrected for outliers.2) NIJobs is the leading player in Northern Ireland. 3) Results of competitors may be unstable across the surveys due to low sample sizes.

SAON Group: Best in class in candidate delivery

2

72% 73% 74% 75%

82%88% 86% 88%

2015 2016 2017 LTMSept-18

SAON Group: Stable customer numbers and

improving customer retention


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; based on invoiced sales.

40




SAON

Group 13.2

14.1

14.6 14.7 14.7

2015 2016 2017 LTMSept-17

LTMSept-18

CAGR+5%

0%

+26% Candidate delivery YoY, +130% increase in

sales efficiency2

+98% Candidate delivery YoY, +25% increase in

sales efficiency2

Investments in sales (headcount, tooling) and marketing

(traffic acquisition & branding)

Investments in same areas as in Austria: Focus on

sales and traffic

pre investment enhanced invests

20152012 2013 2014 2016 2017 2018

7.6%

~40%

Invoiced sales

20152012 20162013 2014 20182017

0.6%

30.9% >20%Invoiced sales

Austria: From #4 in 2014 to clear #21 France: #6 at start of growth initiatives -

First payoff from investments1

1) Market positions in terms of revenue. 2) E.g. call activities in telesales.

Source: Company reports and management estimates.

pre investment enhanced (ongoing) investments

Growth cases in Austria and France progress

41

Additional sales headcount¹

Improved sales efficiency via tech and tooling

Customer retention

Customer development

Target long tail of the market to gain market share

Smart and predictive lead generation

Hyper-care for key customers

Increased frequency of sales activities

Closer, more intense customer approach (field & inside sales)

Growing support and analytics for sales force

Hire

▪ 1-3 months: Onboarding

▪ 4-6 months: Small targets & first deals

▪ 6-9 months: Being profitable

▪ +9 months: Contributing to StepStone growth

Exemplary Sales Professional journey

1) Attrition of existing sales heads to be decreased through improved training, compensation and benefit packages; Improvement in HR and branding to attract new talent.

Increased sales headcount and improved efficiency

Customer acquisition

42

0

25

50

75

Sources: TNS; Google trends.

0.9%

2018201720162013 2014 2015

+6.6%+6.8% 0.0%

Web search for keyword ‘jobs’ in DE

16.62

Mar 2016 Mar 2017

17.19

14.92

Mar 2018

2.482.24

2.52-10% +13%

Contradicting trends show

shortage of candidates

Candidate Delivery (CD)

Candidate DeliveryRelative CD vs next competitor

Customer focus: More listings require StepStone to acquire even more candidates in a flat market

43

SEA

Partner

Other Paid

JobAgent

SEO

Direct

Other Organic Paid

(~60%)

Organic

(~40%)

Strategic traffic network

▪ StepStone has in total ~450 traffic partners

▪ Top partners include well known brands such as

Bild, Handelsblatt, T-Online, Kimeta, Gehalt.de

and Experteer

▪ The network is characterised by portals that

provide a large / national reach. StepStone’s

network is by far the largest in the market

Source: Adobe Analytics; Other Paid includes Banner and Retargeting; Other Organic includes Mailings, Newsletter, Referrers and Social Media.

StepStone has a diversified traffic mix

StepStone traffic sources (exemplary, FY17)

44

▪ A third of clicks following all job related

searches @Google lead to StepStone

▪ For IT job related searches almost half of

all clicks lead to StepStone

▪ Google searches related to engineering

jobs result in a click for StepStone in 68%

of cases

SEA

Relates to /

optimises

SEA traffic

46%

Global Clickshare IT

68%

Engineering

clicks following Google searches

for all job related keywords

clicks following

Google searches for

keywords related to

engineering jobs

clicks following

Google searches for

keywords related to

IT jobs

33%

Google Clickshare for paid

Source: Google data Q3/18, comparison for top-5 competitors for paid clicks.

For IT and Engineering StepStone already takes highest click share on Google Paid Ads

45

United Kingdom (G4J live since July 2018): StepStone UK is fully integrated with Google for Jobs

▪ Fragmented market situation – all major competitors (except Indeed) are integrated

▪ StepStone UK participates for now, but invests in parallel in unique content and branding

▪ Measurable effects so far: Net gains in applications from Google SEO traffic (organic blue links plus Google for Jobs)

South Africa (G4J live since March 2018): Pnet and Careerjunction do not participate

▪ StepStone assets are in a leading position and own a large share of unique content (jobs)

▪ There is no benefit to provide content to Google for free

▪ No negative effects so far for Pnet and CareerJunction

Spain (G4J live since June 2018): Turijobs does not participate

▪ Turijobs is a leading niche player in hospitality with a high brand recognition and unique content

▪ No negative effects so far for Turijobs

Participation in Google for Jobs is decided individually, market by market

46

Group

GTO

Group

COO

Managem

ent B

oard

1

Decrease time to market

▪ Reuse newly built components to test ideas

▪ Share AI algorithms

▪ Share product & technical designs

Increase efficiency

▪ Align IT platforms

▪ Mutualize training, consulting and IT investments

Frame joint long-term strategy and support

execution

▪ From classifieds to transactional marketplaces

▪ (Early-stage) investments into value chain extension

Steer strategic group projects

▪ Joint business initiatives (e.g. seller leads)

▪ Initiatives to “grow together” in group

1) Among others; minority investments.

Classifieds Media

Introducing the AVIV group: Our goal - to capturethe full potential of the next period of growth

47

Mortgage

~1.63 bn€1

Moving

~250 m€3

Home insurance

~160 m€2

Seller

leads

1

Hybrid

models

2

Adja-

cencies

3

Providing the agent with additional core

services1

Satisfying even more consumer needs

with our hybrid agent models2

Capturing adjacent markets with

transaction-triggered services3

Our three priorities

Online Classifieds

~350 m€

Marketing spending

~650 m€

Agent commission

pool

~6 bn€

Total addressable adjacent

markets

~2 bn€

1) 2) 1% of total market. 3) 5% of total market. Sources: OC&C (05/2017), McKinsey. Notes: Marketing spending includes spending of agents, property developers and private sellers in online and offline channels. Figures apply to German RE market.

Classifieds Media

Our three priorities allow us to tap into large markets beyond listings

48

SeLoger margin decline due to consolidation of

Logic-Immo

9M/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

49

3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.

in €m 9M/18 9M/17 yoy org.3)

Revenues 158.8 104.3 52.2% 5.2%

EBITDA 76.4 61.2 24.8% 9.3%

Margin 48.1% 58.7% -10.6pp

1) Source: autobiz; monthly listings, 9M/18 average.2) 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.

Source: OC&C (05/2017), Conseil Général de l’Environnement et du Développement.

Structural tailwind in French real

estate market supports…

Real estate market in France is still buoyant and

online classifieds are expected to continue to grow

LTM cumulated existing home sales transactions in k, 02/2012 –

10/2018, 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

Oct 18

1,000

500

Feb 12

Other Offline Advertising

Print Advertising

Other Online Advertising

Online Classifieds

35% 43%

-8%

+1%

CAGR

(16-20F)

+5%

+6%

50

1) excl. effects of Poliris business, deconsolidated in 2016.

Constant roll-out of new products has been valued

by customers

SeLoger will close another strong year reconfirming

its leading position

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 98 106

116128

140

104

159

4353 58 62 71 76 82

6176

+9%

+9%

CAGR

2011-2017

676

594424 456496 549

615

382 406 440 483544

SeLoger excl. verticals

SeLoger incl. verticals

CAGR

+10%

51

2017

632

724

EBITDARevenues

2011 2012 2013 2014 2015 2016 20179M/18

400

800

0

660

762

628

719

9M/17

+5%

+6%

9M/189M/17

Source: autobiz.

Also on the professional listings side, SeLoger

maintained its strong positionAverage of monthly listings 9M/18 in k1

995

1,276

766720

543523

private listings

52

+2%

# Visits

SeLoger – Traffic SeLoger + Logic-Immo – Traffic

Low

High

The merger helps SeLoger and Logic-Immo to close

gaps in previously underserved areas

53

840k

840k

# of resale pro listings /

January 2018 - pre-merger

≈ 150k

≈ 50k

Estimated # of incremental listings

with Aval / Logic-Immo aquisition

≈ 900k

≈ 1,000k

Sources: Autobiz / internal analysis.

Incremental listing potential from Logic-Immo

results in leading position for pro listings in France

54

+900 customerswith an add-on

+50k listings on SeLoger orLogic-Immo

+▪ Add-on enables agentsto extend their listingspublication to the othersite

▪ Preparing the new„Full Duo“ offerin 2019

SeLoger and Logic-Immo are commercially tapping

the potential through DUO offer

55

≈900

SL Customers

▪ Launched at SeLoger in January 2018,

visibility and lead generation product

▪ Dedicated organization as a

new market

▪ Logic-Immo seller product on pre-sale

to be launched in January 2019

▪ SeLoger will extend to premium qualified

leads and luxury market by 2019

▪ AVIV Group strategic initiative with

synergies among assets: shared price

estimate engine with Immoweb,

based on AI

“Seller lead” strategic initiative has already

demonstrated high performance at SeLoger

56

Immowelt: Margin significantly up at 40%

H1/18 Financials

▪ ARPU increases by 12% yoy to €324 in 9M/18

▪ Focusing on DUO ≥ 5 customers going forward

▪ Visits1) at 43.3m (+/-0% yoy)

▪ # of residential listings1) at 173k (-11%) yoy

Operational update

57

2) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.1) 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

CAGR

Sources: Immowelt, OC&C (05/2017;

German residential real estate only).

58

9.111.9 13.8 14.8 15.5 15.4 15.1 15.3 14.9 15.0 15.7

22.1 22.3 22.6 22.8 22.6 22.4 22.0 22.0 21.7 21.0 19.9

Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18

DUO migration completed and focus on customers with higher volumes

59

Single/Double DEDUO ≥ 5 DUO 1-2

DUO ≥ 51 customer base with high ARPU achieved significant growth since March 2016

Number of agents in Germany2 (in thousands)

1) DUO: 1 contract, 2 portals / Single: 1 contract, 1 portal / Double: 2 contracts, 2 portals / GER only; the “DUO x” contract allows the simultaneous listing of x properties during the contract time (x slots), DUO ≥ 5 refers to any DUO contract with at least 5 slots. 2) Real estate professionals with a term contract (term usually 12 months).

IS24 core agents

17.017.417.6 17.4 17.217.0 17.518.5

Decline due to increasingly overall stagnating offer

The German listings market is contracting

Comments

▪ Listings in Germany have been under pressure over the past years

▪ Decrease driven by an overall stagnating offer in the German housing market

▪ In order to mitigate the decline in listings Immowelt actively takes counteractions:

▪ Increasing product and price differentiation to activate further potential listings

▪ Individual and temporary flat-options for agents based on their DUO contracts

Listings in German housing market1 (average per month in

thousands)

0

50

100

150

200

250

300

0

50

100

150

200

250

300

9M/17 9M/18

-5%

1) Houses, apartments for sale and rent in Germany; Direct comparison with IS24 only partly possible due do different package models.Source: IW management estimate and internal data collection.

-11%

60

ARPU with strong growth over the last quarters –increased value creation for agents drives growth

61

1) ARPU = 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). 2) “DUO x” contract allows the simultaneous listing of x properties during the contract time (x slots); currently all customers with a DUO 1 or DUO 2 contract are being migrated on DUO contracts with at least 5 slots.

ARPU (€/month)

258 268 279 291 300 306 314 320338

Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18 2017

Q3/18

shows first

effects of

DUO 1-2

migration2

763

294

Contract migration and price increases drive ARPU1 growth …

ARPU (€/month)

…but still below main competitor

+16%

+13%

Revenue growth of 7% from 9M/17 to 9M/18

2018 will be another successful year for Immowelt –Strong profitability increase expected

Revenue (€m) EBITDA (€m, % of revenue)

EBITDA margin reaching 40% this year

98111

2016 2017

8288

9M/17 9M/18

+13%

+7%

Margin target reached one year

earlier than guided in 2017

>40%

20%

19

37

2016 2017 2018e

20% 34% ~40%

+93%

62

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

63

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 (05/2017).

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

64

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 (05/2017), Produpress study, Eurostat1) Latest available 2014.

BelgiumFranceGermany1

58%

46%

70%

78%

2%6%

x12.4

65

+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%

66

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

CAGR

+10%

Revenues

67

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

68

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


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)

69

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

70

201720162015 20182017

Carboat Media has benefited from constantly

growing monetization

Monthly customers

Monthly ARPU (in €)

71

* 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%*

Monthly customers: 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%

AS acquisition: July 2014

2017

72

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)

73

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

74

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

75

>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

76

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

77

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


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

78

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

79

@Leisure with “buy and build” strategy

@Leisure full year revenue and EBITDA (€m) 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

20% 15%

x% EBITDA margin

80

16%

2017

125

19

H1/17 H1/18

22%

69

15 23%

73

17

News Media

News Media segment at a glance

News Media82

▪ 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 Insider Inc. 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)

▪ Insider Inc.

▪ 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.

83

Total net reach 2018:

>300m monthly UU Axel Springer Digital/Print

Source: Various national sources for net reach, overlap of print and digital readership estimated based on selected country data.

Total net reach 2013:

>85m monthly UU Axel Springer Digital/Print

Print 2013

69mDigital 2013

49m

Print 2018

53m

Digital 2018 (including Upday and

Insider Inc.):

290m

Global reach: more than 300 million monthly unique

users worldwide

News Media

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 Media84

Digital subscribers

Source: IVW.

+11.9% November 2018

vs.

November 2017

85,661

422,043

52,672

200,571

85

40% 49% 53% 35% 37% 42

%

▪ Revenue CAGR 2015-17 of 38%

▪ Profitable in 2018 YTD

▪ Re-invest near-term profits in growth opportunities; subscriptions, commerce, editorial, original programming

▪ Long-term EBITDA margin of 20%+

▪ Leading digital brand for business journalism

▪ Strengthened market leadership in 2018

Source: Comscore.

0

10

20

30

40

50

60

70

80

Jan16

May16

Sep16

Jan17

May17

Sep17

Jan18

May18

Sep18

Insider Inc.: Market leader in the US

4356

81

2015 2016 2017 2018e

Revenue development in $m

+30%

+46%

CAGR2015-17

+38%

Traffic comparison (unique visitors, m)

News Media

eMarketer – leading provider of high-quality research

and digital market data for companies and institutions

86

▪ 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

▪ Highly profitable business model with margins 40%+

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, 2017. Source: Company information.

Limited Seat Open Access

Renewal Rate (in %)

by subscription type1

Recapture Rate (in %)

by subscription type1

upday: Key player in the news aggregator space and

continued growth – break-even expected in 2019

News Media87

Monthly active users (in millions)

12.2 2.3 N/A

8.2 1.8 10.8

7.3 2.1 N/A

updayGoogle

News

Apple

News

Source: Comscore, October 2018.

0

5

10

15

20

25

30

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18

Monthly unique users (in millions)

Marketing Media

Marketing Media segment at a glance

Marketing Media89

▪ #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)


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


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 Media90

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 Media91

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


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)01/2019

ISS Governance

QualityScore

3 out of 10


ISS Social

QualityScore

2 out of 10


ISS-oekom C+ (from A+ to D-) 2019

MSCI1 A (from AAA to CCC) 2018

Sustainalytics 68 out of 100 20171) 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


Claudia Thomé

Co-Head of Investor Relations

Phone: +49 30 2591 77421

Mobile: +49 160 90445035

[email protected]

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

[email protected]

Documents

Company presentation - Axel Springer SE · 19/01/2019 · 2 Company presentation This document, which has been issued by Axel Springer SE (the "Company"), comprises the written materials/slides