DIE WELT – from No. 3 in print to No. 1 in digitalCapital Markets Day – Berlin, December 11, 2012

Jan Bayer, President WELT Group and Printing

Romanus Otte, General Manager WELT Digital

Driving innovation

Finding efficiencies

Agenda

Delivering results

3

1

2

DIE WELT – from No. 3 in print to No. 1 in digital

DIE WELT DIGITAL – how it works4

Dec. 11, 20122

Critical success factors of our business

DIE WELT – from No. 3 in print to No. 1 in digital

Audience Advertisers

Innovation Efficiency

Dec. 11, 20123

Delivering results

DIE WELT – from No. 3 in print to No. 1 in digital

1) Population expansion in ma 2010Source: VA 2012-I; Basis: Readers per issue, users per week

Crossmedia net reach (in m)

2.7

3.2

3.6

4.5

7%

12%

-1%

11%

CAGR (2010 – 2012)1)

The WELT Group: most extensive reach and fastest growing media brand in quality newspaper segment

Dec. 11, 20125

DIE WELT – growing print reach and an increasingly young readership

1) Population expansion in ma 2010Source: ma Tageszeitungen 2010 - 2012

6

Reach 14 to 29 year olds (indexed)

2010 2011 2012

1.4

1.2

1.0

0.8

0.6

0.0

1.48

0.94

0.86

1.6

Reach (in m)

DIE WELT – from No. 3 in print to No. 1 in digital

+10%

-1%

+8%

CAGR (2010 – 2012)1)

2010 2011 2012

140

130

120

110

100

0

116

95

134

Dec. 11, 20126

7

WELT am SONNTAG – Leadership in reach further extended

Reach (in m)

1) Population expansion in 2010Source: ma Presse, Basis: Readers per issue

DIE WELT – from No. 3 in print to No. 1 in digital

0.8

0.0

2012(ma II)

1.1

0.7

2011(ma II)

2010(ma II)

Reach / spread

1.2

1.0

0.2

0.4

0.6

1.4

+1%

-16%

CAGR (2010 – 2012)1)

Dec. 11, 20127

1.84

2.27

3.51

4.86

DIE WELT Online reaches more people than each of its competitors

Unique visitors (in m, average per month 9M/12)

Source: comScore Europe Media Trend

DIE WELT – from No. 3 in print to No. 1 in digitalDec. 11, 20128

National daily newspapers National Sunday newspapers

Strong performance in print advertising market –DIE WELT and WELT am SONNTAG making gains…

DIE WELT – from No. 3 in print to No. 1 in digital

-1.2%

+4.5%

-10.5%

-13.3%

+2.4%

Change in gross expenditure on print advertising (9M/11 to 9M/12)

Source: Nielsen, gross expenditures excluding media advertising

Dec. 11, 20129

… and DIE WELT is demonstrating particularly strong growth in the online advertising market

DIE WELT – from No. 3 in print to No. 1 in digital

+32%

Online advertising market Germany

+18%

WELT ONLINE

Change in gross expenditure on online advertising / revenues (9M/11 to 9M/12)

Source: Nielsen

Dec. 11, 201210

DIE WELT App well-established in top field – one of the highest revenue generators in the German iTunes sto re

DIE WELT – from No. 3 in print to No. 1 in digital

Games

Games

News

Games

Games

Productivity

Games

News

Productivity

News

BILD and DIE WELT are the highest ranked

“non-game” apps

Top 10 Revenue Ranking (German iTunes store)

Source: iTunes Store iPad App Ranking (Dec. 2012), xyologic

Dec. 11, 201211

DIE WELT app is No. 5 – with >130k other paid apps behind

Finding efficiencies

“Online-to-Print” – the next step in the evolution of the newsroom

DIE WELT – from No. 3 in print to No. 1 in digital

2002

2006

2012

First joint newsroom in Germany (WELT Group and BERLINER MORGENPOST)

First fully integrated print/online newsroom

Online-to-Print –Realignment of the editorial organisation

Dec. 11, 201213

DIE WELT – from No. 3 in print to No. 1 in digital

Local

BERLINER MORGENPOST

National

WELT Group

Local

HAMBURGER ABENDBLATT

Dec. 11, 201214

Building on strengths: extension of successful join t newsroom model to HAMBURGER ABENDBLATT

Joint newsroom pays off: product range greatly expanded

2002 2012

DIE WELT – from No. 3 in print to No. 1 in digitalDec. 11, 201215

At the same time, high cost discipline exercised –with further savings potential of up to 20%

DIE WELT – from No. 3 in print to No. 1 in digital

Potential cost savings

Target 20162011Realised cost savings

2001

Development of editorial costs WELT Group

Dec. 11, 201216

24%

up to20%

Note: including collective wage increases

Success through continuous cost management across the value chain – e.g. printing plants

DIE WELT – from No. 3 in print to No. 1 in digital

Development of costs of Axel Springer printing plan ts

Target 2016Potential cost savings

2011Realised cost savings

2001

Note: including collective wage increases and depreciation, not including consumables (e.g. paper)

Dec. 11, 201217

21%

up to15%

Driving innovation

Our goal: market leader in paid digital quality journalism – with two revenue streams

DIE WELT – from No. 3 in print to No. 1 in digital

Digital advertising Paid content

Strong and sustained

momentum in recent years

Very good experiences with

app-based products

High quality content and products

Market leadership

Dec. 11, 201219

A successful portfolio of paid digital content established within three years

2009 2010 2011

Launch of the iPhone app

Introduction of paid models on regional portals

First national daily newspaper on the iPad

Launch of the Android app – first national daily newspaper on all relevant platforms

Launch of DIE WELT on the Kindle e-reader

2012

DIE WELT – from No. 3 in print to No. 1 in digital

Launch of the DIE WELT app on the Kindle Fire

DIE WELT is part of the newsfeed on the Surface

Dec. 11, 201220

We are now integrating our browser-based offering into this portfolio – based on both revenue streams

DIE WELT – from No. 3 in print to No. 1 in digital

Clear goals

Flexible model

Extensive preparation

� Revenue increase with extension of business model

� Gaining digital subscribers while ensuring participation in dynamic online advertising market

� Usage-dependent Metered Model

� High flexibility and agility in operative management

� Initially 20 articles per month viewable for free

� Comprehensive market research with almost 2,000 users

� Experience of numerous executives from international publishers (e.g. NYT, WSJ)

� Definition of market driven product bundles

Dec. 11, 201221

Clear and simple product offering structure

22 DIE WELT – from No. 3 in print to No. 1 in digitalDec. 11, 201222

In the US paid content is gaining momentum

DIE WELT – from No. 3 in print to No. 1 in digital

Dec. 2011

US newspapers with a paid model for online offerings

Note: Newspapers with paid models (Nov 2012), Number of US Dailies (2011)Source: PEW Research, Newspaper Association of America, paidcontent.org, newsandtech.com

11%

Newspapers with paid model Newspapers without paid model

14%23%

June 2012 Dec. 2012

Already 300+newspapers

with paid model

Dec. 11, 201223

Metered

Freemium

Lockdown

US publishers pursue different paid strategies –Metered Model dominates

24

Paid content strategies 1)

1) Share for Metered Model based on 2012 NAA study comprising 156 newspapersSource: Newspaper Association of America, paidcontent.org

DIE WELT – from No. 3 in print to No. 1 in digital

>80%

Dec. 11, 201224

The paradigm shift is looming in Germany as well

DIE WELT – from No. 3 in print to No. 1 in digital

46%

8%

46%

LikelyYes Unlikely

Will paid content be implemented for regional publish ing houses?

Source: Schickler Management Consulting (08/ 2012)

Dec. 11, 201225

Success cannot be determined in advance.Its foundations can be.

DIE WELT – from No. 3 in print to No. 1 in digital

Strong starting positionDIE WELT has the greatest online reach of any brand in the quality newspaper segment and is continuously extending its position

Extensive experience with subscription modelsWe have more than 50 years experience in print and are a pioneer in digital subscription models

Journalistic and technical excellenceA high quality, technologically flawless offering with added value for the user is the basic prerequisite for success

Dec. 11, 201226

DIE WELT DIGITALHow it works

DIE WELTTransition from print follower to

digital leader