Société Générale Conference – The Premium Review

Société Générale Conference –The Premium Review Paris, December 4, 2008

Dr. Andreas Wiele Board Member, President BILD Division and Magazines

December 4, 2008 Société Générale Conference - The Premium Review2

Vision: Axel Springer becomes the

best integrated European

multimedia company

2

Excellent online presence with morethan 50 assets – 10.0% of revenue digital1), 7 of 10 biggest online assets profitable2)

1 Revenues of €2,577.9m and EBITDA of €470.0m in fiscal year 2007

3

Exceptional print franchise: market leader-ship with 170 newspapers and magazines

Axel Springer is the only German multimedia stock

1) Based on pro-forma digital media revenues Q1-3/2008.2) Based on Q1-3/2008.


Clear strategy with traceable success

Strategy

Market leadership in German-language

core business

Creativity

Internationalization Digitization

Entrepreneurship Integrity

Corporate values

Profitable Growth


EBITDA on record high

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070

100

200

300

400

500

600

700

800

Revenues (left-hand scale)1)

EBITDA (right-hand scale)1)

1) 1991 – 2002 HGB, 2003 – 2007 IFRS.

(in €m)

470434414

433

290226

191

357


1,290.3363.928.2

587.873.912.6

408.310.62.6

208.136.7

17.6 1)

83.4-15.1

-

New segment reporting introduced in Q1/08reflects strategy and increases transparency

1,493.1338.422.7

Newspapers

814.188.910.9

Magazines

152.347.231.0

Digital Media

45.023.351.8

Printing

73.3-27.8

-

Logistics/Services/Holding

reported 07Revenue (€ m)EBITDA (€ m)Margin (in %)

Newspapers National

Magazines National

PrintInternational Digital Media Services/Holding

restated 07Revenue (€ m)EBITDA (€ m)Margin (in %)

International print business

Brand-relatedonline assets

Combining twosegments

OLD

NEW

Change

Newspapers Magazines Printing Services/Holding

FAKT

welt.de, Bild.de

computerbild.de

1) Margin ex investment income -0.5%.


Competitive advantages of Axel Springer

Positioningis paying off in

difficult markets2.

1. Less exposure to advertising and classifieds

Strong media brands

3. Consistent digitization strategy


German newspaper advertising revenues havebeen stable since 2003

UK(1998=100) GermanyUSA

60

80

100

120

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: USA NAA; UK NMA; Germany Nielsen and ZMG; Revenue Growth of Q1-Q2/2008 taken for full year

8287


Axel Springer is less dependent on advertisingand classifieds than its competitors

Advertising revenuesas % of total revenues

1) In 2004, Source: Newspaper Association of America. 2) In 2006, Source: Zenith, Advertising Association Yearbook.3) In 2007, Source: BDZV.

Classified revenuesas % of total advertising revenues

4) JP Morgan estimates, company data.5) In BDZV, local and regional subscription papers (69% of circulation in Q2/2008).6) Q1-3/2008.

USA GermanyUK Axel Springer

80%1)

57%2)54%3)

45%6)

19%6)

USA GermanyUK Axel Springer

36%4)

52%4) 56%5)


Real estate classifieds revenues: Online overcompensates print

+2%

2006 2008e2007

+8%Revenues in real estate ads(illustrative)

+84% +81%

-10% -12%1)

1) Based on Jan-Aug 08 figures.




difficult markets2.


Strong media brands



Axel Springer is Germany’s leading print marketer and publisher

1) Source: AC Nielsen; gross adspend, excluding classified ads, supplements and media advertising, Q1-3/2008.2) Source: Company estimates based on IVW Q1-3/2008, paid circulation; weighted market share taking into account different title frequencies.3) Source: ma 2008 Pressemedien II; combined reach among German 14+ year-olds of all covered Axel Springer AG newspapers, magazines and 100% owned subsidiaries.

Market share by adspend1)

Newspapers Magazines

Market share by circulation2)

With 21% market share, Axel Springer reaches

56% of the German population3) daily

17%

9%8%

5% 4% 4%

AxelSpringer

G+J Burda Holtz-brinck

Bauer WAZ

Newspapers Magazines

21%

7% 6%5% 5%

3% 3%

AxelSpringer

Bauer WAZ SWMH Burda Holtz-brinck

G+J


69%

12

Newsstand papers

German newspaper market1) Core newspaper segments Market share2)

No. 1 81%

No. 1 70%

No. 3 17%

59%

No. 13) 25%

Sunday newspapers

Regional subscription papers

Nationalqualitypapers

1) Except weekly newspaper based on BDZV/IVW Q1-3/2008.2) Based on paid circulation Q1-3/2008.3) Source: Hügel Statistik. Based on gross advertising volumes among all regional newspapers in Hamburg/Berlin, Q1-3/2008.

Dominant market position in German newspaper market yields >25% EBITDA margin in largest business segment

No. 13)

21%

7% 3%

Regional subscription papersNewsstand papersNational quality papersSunday newspapers


Unique expansion path: example BILD


The Sun

9.8

BILD

11.1

Le monde

6.7

11.6

8.0

11.7

USA Today

3.6

2.0

Only BILD reaches more people than biggest TV program

The X Factor

Source: U.K.: average Aug/Sep of The X Factor, NRS (National Readership Survey), BARB (BroadcastersAudience Research Board): MRI (Mediamark Research and Intelligence), Nielsen Media Research, September 2008; France: average of Koh Lanta, EPIQ-Studie, Mediametrie; Germany: average of Wetten, dass…? 2007, Viewers aged 14+, GFK/TV Panel 2007.

America’s Got TalentWetten,

dass…?

KohLanta

(reach in m)


1) Nielsen; Reading example: €1 spent in BILD advertising is 8.9x as efficient as €1 invested in TV advertising measured in sales of the product

An advertising campaign in BILD sells more products than a similar campaign in TV

TVBILD, BamS

x 1.64062100GranufinkProsta2005

x 3.23198100L‘Oréal2007

x 3.739145100Senseo2004

x 3.269220100Maggi2007

x 8.91)

to Benchmark

No trackable success!TV-Benchmark= 45

400BILD-NRW100Intersnack

2007

BILD/BamSvs. TV

Output € viaInput €in ad campaignProduct


CarsTV listingsweekly biweekly

ComputerPC Games AVF

Womenweekly3) monthly Youth/Music Finance

Sports

No. 1 No. 12) No. 1 No. 1 No. 1 No. 1 No. 1

No. 1 No. 4 No. 1 No. 2 No. 3 No. 3 No. 31) Paid circulation, IVW data, Q1-3/2008, weekly weighted.2) For digital TV.3) Without Yellow press.

Leading market position in seven core segments in Germany1)


A strong international presence

Poland Hungary Switzerland Spain

Prin

tD

igita

l med

ia

France: 4 magazines + AUTO PLUS (50%).

Czech Republic:6 magazinesRomania (40%): 12 magazines

€304.3 m

Internat.revenues,

(Segment Print

Internat.) €440.3m

Internat. Revenues

22.1%of total

revenues€81.7mInternat. revenues

(Part of segment Digital Media)

Czech Republic: Leading car portal,auto.cz;Turkey: Dogan TV (25%)

10 magazines;4 newspapers

Market share 44,6%(circulation national daily newspapers)

News portals:dziennik.pleFakt.plnewsweek.pl

Others:students.plsports.plpopcorn.plauto-swiat.pl

30 magazines; 10 newspapers

Market share19%, largest publisher(based on advertisingrevenues)

Regional newsnetwork in 8 countriesWomen portalnana.huEconomicalnewsportal vg.hu

1 newspaper;13 magazines (biggest consumer magazine);

Market leader TV listings, business/financial

handelszeitung.chstudents.chbilanz.chpartyguide.chusgang.chstudents.chstocks.chbeobachter.chtele.chtvstar.ch

13 magazines

Market leader videogames magazines, computer magazines

computerhoy.esautobild.eshobbyconsolas.esmicromania.es

otherRussia

4 magazines

Market leader weekly people magazines

ok-magazine.rucomputerbild.rurunewsweek.ru

Germany, France, Italy, UK, Spain, Belgium, Switzerland, Canada, Morocco

Germany, France, Italy, UK, Spain, Benelux, Switzerland, US, China, Sweden, Poland

Q1-3/2008€43.5m

(Segment Newsp.+ Mag. National)



difficult markets2.


Strong media brands




Q1-3/08: pro forma digital revenues 10.0% of total revenues.

Successful digitization ahead of market

1. Content/brands

3. Classifieds/ marketplaces

2. Ad sales/marketing

Core competencies

Q1-3/07 Q1-3/08

19.0 1)

Development unique visitors(m) in Germany

16.0 Market Growth: + 5.9%1)

+ 18.7%

1) Source: comScore (development unique visitors), gross reach.


Digital landscape: Occupying core segments

Content/brandsClassifieds/

market placesAd sales/ marketing

Infotainment News

Regional

WomenTV

Sport

Finance

Auto

Ad Sales/Marketing

JobsReal estate

MarketPlaces

ConsumerElectronics

Ad sales/marketing

(reach and performance based)

Jobs

Youth/Music


Digitization through acquisitions & organic growthOrganic

2006 2007 2008

582

3327

Total

011Disinvestments17347Total

11193Organic6165Acquisitions

200820072006

Acquisitions


Mobile Online Video

web-to-print workflows create content for all channels and media

Single Newsroom

Articles and photos are distributedonline first and across several channels

Online-first strategyfor three national and a regional newspaper seven days a week

Quality journalism

Case study: WELT-Group – successful transitionfrom newspaper to multimedia brand


Transformation of WELT brand into digital multi-media family increases both, print and online reach

2006 2008

3.1m1)

WELT Group: Total reach (gross) across all media

+74%

Reach: 0.73m contacts

+ 4% since 2006

WELT/WELT KOMPAKT

Source: Print: AWA 2006, 2008; Online: AGOF 2006-I, 2008-I (NpM), Addition of Contacts

5.4m1)


+ 19% since 2006

WELT am SONNTAG


+ 155% since 2006

WELT ONLINE


Source: AWA 2005 to 2008; 1) since 2006 DIE WELT / WELT Kompakt

2005 2006 2007 2008

1.83

1.26

2.04

1.84

1.36

2.07

1.82

1.54

2.07

1.92

1.35

2.01

WELT1)/WamS FAZ/FAS SZ

(in m)

Total reach (gross) of WELT / WELT am SONNTAG grows while competitors decline


EBITA2007

Merchandising and otherrevenues

EBITA2004

Circulationrevenues

Costreduction

Advertisingrevenues

Profit improvements by integrated editorialworkflow and innovative advertising solutions


Total reach growth driven by online activities

In total

81.4m(+5.2%)

contacts

1) Source: ma Pressemedien II 2008 vs. ma Pressemedien I 2008; AWA July/2008 vs. Jan/20082) Source: comScore, unique visitors, Q1-3/2008 vs. Q1-3/2007.

Newspapers26.8m contacts

(+2.0%)1)

Magazines35.6m contacts

(+1.1%)1)

Online19.0m contacts

(+18.7%)2)

Highlights Q1-3/2008


883.1

818.4

124.5

1826.0

Q1-3/07

897.4

803.8

154.1

1855.4

Q1-3/08

892.9

825.9

126.1

1,844.9

Q1-3/07

911.6

897.7

184.9

1,994.1

Q1-3/08

+8.1%

8% top line growth in nine months includingacquisitions, organic growth of 2.4% in Q3

Revenues ex consolidation effectsTotal revenues

Advertising revenues Other revenuesCirculation revenues

(in €m)

+8.7%

+2.1%

+46.6%

307.8

283.145.5

636.4

Q3/07

313.8

275.2

651.0

Q3/08

+2.3%

-2.8%

+2.0%

+36.4%

304.3

280.745.4

630.5

Q3/07

311.4

274.160.3

645.9

Q3/08

+1.6%

-1.8%

+1.6%

+23.8%

+2.4%

-2.4%

+2.3%

+32.8%62.0


Q1-3 revenue growth driven by Print International and Digital Media

Circulationrevenues (€m)

Advertisingrevenues (€m)

Otherrevenues (€m)

Total segmentrevenues (€m)

NewspapersNational

MagazinesNational

Digital Media

PrintInternational

Q1-3/07 % % % %

5.6-2.43.8

8.3-5.6-6.2

33.6 1.3 -39.3

-

>100

>100

Pro forma digital media revenues (€m)1)

(% of total revenues)

451.8

480.2

14.9

946.9

286.3

137.6

10.2

434.1

154.9

118.4

20.9

294.1

450.2

468.9

20.0

939.0

128.2

163.5

12.7

304.3

-

22.3

112.0

-

68.2

257.5-0.8 -3.3 3.5 >100

159.78.7

1) Including 60% of zanox according to target structure.

Q1-3/08

Q1-3/07

129.9

279.3

10.3

419.5

Q1-3/08

Q1-3/07

Q1-3/08

Q1-3/07

Q1-3/08

89.8 189.3

199.410.0

24.9


EBITDA slightly up in nine months

EBITDA, EBITDA-margin

(in €m)

+4.1%

Q1-3/07 Q1-3/08

95.01)

Q3/07

92.7

Q3/08

-2.4%

14.9%1) 14.2%

16.0%1)15.4%

306.6

294.41)

1) Adjusted for ProSiebenSat.1 dividend (€23.1m).

317.5

118.1


Outlook 2008

Group

EBITDA/EBITA > 20071)

Revenues > 2007

Net debt < 2007

Launch costs < 2007

Segments

eps < 20072)

1) Adjusted for ProSiebenSat.1 dividend and Kirch-payments.2) Excluding ProSiebenSat.1 proceeds. Including proceeds, eps will be significantly higher than previous year.

Management confirms full year revenues and EBITDA guidance for the group

Print International

Newspapers National

Revenues: < 2007EBITDA: < 2007

Magazines National

Revenues: > 2007EBITDA: > 2007

Digital Media

Revenues: > 2007EBITDA: > 2007

Revenues: > 2007EBITDA1): > 2007

Services/ Holding

Revenues: = 2007EBITDA1): < 2007


Paradigm shift: online first

Acquisition of new businesses according to core competences

Transformation of existing business into digital multimedia brands

Integrated content producer

Centralized multimedia sales

Aggressive attacker instead of depressed defender

Seven reasons why Axel Springer is bestpositioned for monetization of media convergence

Ownership of digitization – everybody is responsible

BACKUP


Summary Q1-3/2008

Top line growth driven by international and digital8.1% growth in group revenues due to major digital acquisitions and international businessOrganic growth (ex consolidation effects) of 1.6% in difficult market environmentSuccessful price increase of key titles: circulation revenues up 2.0% in Q3 and 2.1% in Q1-322.1% of total revenues now international and 10.0% digital

Strong and secure financial basisNet debt including pensions down to €757m from €1,091m (year end 2007)Comfortable headroom through credit line of €1.5bnShare buyback of 917,341 shares at €80 completed in July

Strong operating incomeEBITDA up 4.1%1) in Q1-3 to €306.6m in difficult market environmentEBITDA margin at 15.4% (Q1-3/07: 16.0%)1)

Main drivers: acquisitions, reduced launch costs, price increases and cost discipline

Management confirms group guidance 20081) Compared to EBITDA Q1-3/2007, adjusted for ProSiebenSat.1 dividend.


Newspapers/Magazines National: operational excellence in deteriorating environment

BILD copy price increase from €0.50 to €0.60 in old West German statesFurther copy price increases: BILD am SONNTAG, HAMBURGER ABENDBLATT, BERLINER MORGENPOST, DIE WELTCirculation of daily newspaperDIE WELT/WELT KOMPAKT on all-time high in first nine months

High margin in difficult marketTV DIGITAL boosts circulation+10.5% in Q1-3 to over 2m copiesVarious BILD magazines and TV DIGITAL with market share gains in circulation over prior year‘s period

Newspapers National Magazines National

Re-organization of print advertising sales force to create one multimedia sales unit for thenational Axel Springer print and online portfolio


Key developments Print International

Switzerland Integration of Jean Frey and subscription base of CASH magazinesuccessfully accomplishedSynergies achieved: Profit margins of all acquired businessestoday higher than before integration

Poland FAKT: strong growth, high profitability, start of publication in Great Britain and IrelandTotal market share of 44,6% (circulation of national daily newspapers)

RussiaCOMPUTERBILD: circulation up 24% despite copy price increaseFORBES: strong growth in ad revenues

India June 2008, foundation of joint venture in India with India TodayGroupFirst title: Indian edition of AUTO BILD


Key developments Digital Media

Closing of sale of stake in ProSiebenSat.1 Media AG at €19.40 per share in Q1/08Closing of acquisition of outstanding Bild.de shares in Q1/08

Successful transfer of content from print to online: WELT ONLINE and computerbild.de – fastest growing news and computer portals in Germany

Extension of strategic partnership with Dogan groupAcquisition of ~10% stake in the major Turkish media group Dogan Yayin HoldingNo further cash investment: use of higher and secured valuation of stake in Dogan TVValue securing mechanism for remaining direct stake in Dogan TV of €298m extended until 2015Axel Springer stake in Dogan TV (directly and indirectly) rises from 25% to 26.5%

Acquisition of transfermarkt.de, partyguide.ch, usgang.ch and increase of stake in gamigo.de to majority

auFeminin.com: revenues stable in France, growth in internationalAcquisition of Onmeda, the leading premium health portal in Germany

zanox.de: international expansion, further product developments


147.41)

128.41)

53.91)44.91)

36.31)21.82)

0

100

200

300

+86.9%

Sports digital: Market leadership

Source: Average monthly page impressions, IVW Q1-3/2008.1) Editorial content „Sport“.2) Measurement from June 2008.

301.5

161.3150.8

133.8

30.5 20.31)

PIs(in m)


Investor Relations contacts

Claudia Thomé

Head of Investor Relations

Phone: +49 (0)30 2591 77421

Mobile: +49 (0)160 90445035

[email protected]

Axel Springer AG

Axel-Springer-Str. 65

10888 Berlin / Germany

Fax: +49 (0)30 2591 77422

Daniel Fard-Yazdani

Investor Relations Manager

Phone: +49 (0)30 2591 77425

Mobile: +49 (0)151 52844459

[email protected]

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Société Générale Conference – The Premium Review