15 Capital Markets Day On track to become the leading digital publisher Berlin, December 9, 2015
15Capital Markets DayOn track to become the leading digital publisher
Berlin, December 9, 2015
Name: EVENT Login: ASse-2015-Dec
CAPITAL MARKETS DAY 2015 “On track to become the leading digital publisher”
Berlin, December 9, 2015 Axel-Springer-Str. 65, 10888 Berlin Room “Ernst Cramer”, 19th Floor
AGENDA
1 Keynote
Dr Mathias Döpfner, Chairman & CEO
2 Digital Journalism / Paid Content
Ken Lerer, Managing Partner Lerer Hippeau Ventures
3 Financials
Dr Julian Deutz, CFO
4 Paid Models – Shaping the publisher of tomorrow
Jan Bayer, President BILD and WELT Group
5 Business Insider – From startup to #1 business news site
Henry Blodget, Founder, CEO & Editor-in-Chief Business Insider,
Julie Hansen, COO & President Business Insider
6 upday – where journalism and algorithm join forces
Peter Würtenberger, CEO upday
7 Axel Springer’s Digital Classifieds Family – More than the sum of its parts
Dr Andreas Wiele, President Marketing and Classified Ad Models
8 StepStone – Strong growth
Ralf Baumann, CEO StepStone
9 SeLoger – Monetizing the advantage of a specialist offering
Roland Tripard, CEO SeLoger
10 Immowelt & Immonet – Two are better than one
Ulrich Gros, CFO Immowelt
11 Yad2 – Israel’s leader in classifieds
Yavin Gillmore, CEO Yad2
12 Bonial.com – Creating a global leader
Christian Gaiser, Founder & CEO Bonial
13 Summary and Outlook
Dr Mathias Döpfner, Chairman & CEO
Disclaimer
The following presentations, which have been issued by Axel Springer SE (the "Company"), comprise the written materials/slides for the Capital Markets Day of the Company, held on December 9, 2015.
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 these presentations or of any oral information provided in connection therewith, and no liability, responsibility or obligation is accepted for any such information or opinions.
These presentations contain forward looking statements which involve risks and uncertainties. The forward looking statements speak only as of the date of these presentations and include the Company’s beliefs and expectations and the assumptions underlying them, which may or may not prove to be correct. These statements are based on plans, estimates and projections as they are currently available to the management of the Company. The actual performance and results of the business of the Company could differ materially from the performance and results discussed in these presentations.
The Company undertakes no obligation to update or revise any forward looking statements or other information contained herein whether as a result of new information, future events or otherwise.
These presentations do not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto.
1
KeynoteCapital Markets Day – Berlin, December 9, 2015
Dr Mathias Döpfner, Chairman & CEO
You can access the webcast of Mathias Döpfner’s speech on our website
www.axelspringer.com/cmd2015
2 Keynote2 Dec. 9, 2015
2
Digital Journalism / Paid ContentCapital Markets Day – Berlin, December 9, 2015
Ken Lerer, Managing Partner Lerer Hippeau Ventures
You can access the webcast of Ken Lerer’s speech on our website
www.axelspringer.com/cmd2015
2 Digital Journalism / Paid Content2 Dec. 9, 2015
3
FinancialsCapital Markets Day – Berlin, December 9, 2015
Dr Julian Deutz, CFO
Digital activities contribute 73% to group EBITDA
Revenues Advertising Revenues EBITDA
12%
73%
88%
27%
2009 9M/15
30%
81%
70%
19%
2009 9M/15
19%
62%
81%
38%
2009 9M/15
Digital share. (Digital share of EBITDA in 9M/15 would be 80% if Services/Holding was fully allocated to non-digital.) Non-digital share.
2 FinancialsDec. 9, 2015
Classified Ad Models have become mostimportant EBITDA contributor
Axel Springer segment overview (in €m)
9M/15 yoy 9M/15 yoy 9M/15 yoy 9M/15 yoy
Revenues 547.5 53.3% 1,095.4 -3.0% 632.7 12.0% 97.1 -23.2%
EBITDA 225.7 40.8% 137.8 -19.1% 66.1 -13.9% -33.5 -
Margin 41.2% -3.7pp 12.6% -2.5pp 10.4% -3.1pp
Paid Models
Marketing Models
Classified Ad Models
Services / Holding
3
Axel Springer segment overview incl. refined segment allocation1) (in €m)
1) Refined segment allocation will be fully implemented with FY15 publication. 9M/15 and FY14 restated figures available on website.
9M/15 yoy 9M/15 yoy 9M/15 yoy 9M/15 yoy
Revenues 547.5 53.3% 1,130.4 -3.4% 632.7 12.0% 62.1 -27.9%
EBITDA 224.2 42.4% 151.9 -13.0% 64.7 -12.9% -44.9 -
Margin 41.0% -3.1pp 13.4% -1.5pp 10.2% -2.9pp
Classified Ad Models
Paid Models
Marketing Models
Services / Holding
FinancialsDec. 9, 2015
Allocations refined in segment reporting
4
Alignment with current management and business structure (e.g. post FUNKE transaction) – thereby segment results reflect management responsibility
Reflect heightened importance of digital activities
Marketing, sales, logistics, customer service and TV production now allocated to Paid Models (before Services/Holding)
Reduction and adjustment of inter-segment cost allocations
Changes only affect other revenue and EBITDA
Objectives of refinement Changes
FinancialsDec. 9, 2015
0
10
20
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15
in % Organic revenue growth
Classifieds with strong organic growth and high underlying margins
5
21.4%
14.0%
6.8%10.0%
– General/Other– Classifieds
– Real Estate– Jobs
Pro-forma figures based on portfolio in 2014/2015, respectively.
0
25
50
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15
in % EBITDA margin
19.6%
47.8%45.2%40.8%
FinancialsDec. 9, 2015
Ownership of classifieds back to 100% – General Atlantic to become 8.3% group shareholder
6
Axel SpringerPaid
ModelsMarketing
ModelsClassifiedAd Models
GA share 8.3%
As of December, 2015
Axel SpringerPaid
ModelsMarketing
Models
Before December 8, 2014
ClassifiedAd Models
GA share30%
Axel SpringerPaid
ModelsMarketing
Models
Since December 8, 2014
ClassifiedAd Models
GA share15%
December 8, 2014
Acquisition of 15%-stake for €446m in cash
Closing expected in December, 2015
Acquisition of remaining 15%-stake for 9.0m Axel Springer SE shares
FinancialsDec. 9, 2015
Acquisition of remaining GA stake in classifieds
Capital increase of 8,955,311 new shares planned, closing expectedin December, 2015. New share total 107,895,311.
Transfer of new Axel Springer SE shares to GA, representing 8.3% ofnew share base.
GA with lockup of 6/18 months for 50/50% of stake.
7
Transaction overview
FinancialsDec. 9, 2015
Active portfolio management with attractive exits
8
2010 – Q4/15
2013 – Q3/15
9M/15
2011 – Q3/14
>501)
86
262)
53
1) Closing pending and expected in Dec. 15 or Q1/162) Capital gain resulting mainly from sale of Smart AdServer (part of aufeminin group) and Talpa Germany (previously Schwartzkopff TV)
Acquired – Sold Net capital gain (€m)
Σ > €200m
FinancialsDec. 9, 2015
Continuous cost management leads to outperformance of initial cost savings plan
2011 2012 2013 2014 2015 2016
9
Cost savings of >€120m envisaged until 2016 (compared to cost base 2011),not including variable costs related to volume decreases
Reorganization of editorial departments BILD
Reorganization of editorial departments BILD
Comprehensive optimization program for printing plants
Comprehensive optimization program for printing plants
Merger of editorialunits BILD Berlin/B.Z.Merger of editorialunits BILD Berlin/B.Z.
Merger oflogistics anddistributionunits
Merger oflogistics anddistributionunits
New IT Help-desk providerNew IT Help-desk provider Centralization of IT
operations in BerlinCentralization of IT operations in Berlin
Reorganizationof print salesfunction
Reorganizationof print salesfunction
Spin-off ofprintingplants
Spin-off ofprintingplants
Merger of pre-press operations(BILD and WELT)
Merger of pre-press operations(BILD and WELT)
Centralization ofprocurement functionCentralization ofprocurement function
Top-down savings programfor all central unitsTop-down savings programfor all central units
Restructuring ofcall centeroperations
Restructuring ofcall centeroperations
FinancialsDec. 9, 2015
Leverage still within comfortable limits, attractive financing secured
€1.200m revolving credit facility (partly drawn, maturity 2020)
€300m term loan (maturity 2020)
€637m promissory note/Schuldschein(maturity 2016/18/20)
Average interest rate currently 1.2%
Inflows
Strong free cash flow generation
€257m loans related to sale of assets to FUNKE Media Group (payments within 2-year period starting 2018)
€225m sale of stake in Do an TV (payments in 2016, 2020, 2022)
Outflows
Put-Call-Options following acquisitions, volume expected to be ~€50m for 2016
Attractive financing Future cash flows
1) Excl. pension liabilities. 2) Based on Bloomberg EBITDA consensus for FY 2015.
Net financial debt1) expected to be ~€1.150m at year-end 2015 (leverage of ~2.0x2))
10 FinancialsDec. 9, 2015
Adjusted eps up by 9.0% in 9M/15 –low double-digit growth for FY 15 expected
228.9186.0
257.9
198.8
Adjusted net incomeNet income
9M/159M/14
Net income from continuing operations in €m
1.78 2.20 1.47 1.60
2.20 eps 1.60 adjusted eps
11 FinancialsDec. 9, 2015
2015: Strong performance and digital transformation accelerated
Group financials reflect successful digitization1
Classifieds – excellent growth, high margins, creating a strong N° 2 in German real estate and back to 100% ownership2
Investment in Business Insider as core element of our digital content strategy3
Active portfolio management – attractive exits4
12
Continuous cost management and attractive financing further improved5
FinancialsDec. 9, 2015
4
Paid Models – Shaping a publisher for tomorrowCapital Markets Day – Berlin, 9 December 2015
Jan Bayer, President BILD and WELT Group
2
Since 2013: comprehensive portfolio realignment, reorganization and cost reduction
Shaping a publisher for tomorrow
2013 20152014
Dec. 9, 2015
Snapshot #1: Despite decreasing circulation –stable contribution margin at BILD
3 Dec. 9, 2015
100 92 85 75
2012 2013 2014 2015e
100 98 100 98
2012 2013 2014 2015e
100 96 95 91
2012 2013 2014 2015e
-25%
-9%
-2%
Circulation
(2012 = 100)
Circulationrevenue
(2012 = 100)
Contributionmargin
(2012 = 100)
Note: Contribution margin = circulation revenues less paper and production costs
Shaping a publisher for tomorrow
4
Snapshot #2: Reduction in production costs clearly exceeds decreases in print volumes
Dec. 9, 2015
58
15
10
19
BILD BamS B.Z. WELT WamS
Delta production cost reductions/decrease in print volumes in percentage points (2014 vs. 2005)
5ppt
10ppt
15ppt
20ppt
Shaping a publisher for tomorrow
Snapshot #3: Printing facility staff reduced by >300 FTEs since 2010 – with further potential
5 Dec. 9, 2015
984937
880821
741675
0
400
800
1200
2010 2011 2012 2013 2014 Jul 15 2020
Printing facility FTEs
Shaping a publisher for tomorrow
Snapshot #4: Production staff reduced by almost 1/3 in line with printing facilities
6 Dec. 9, 2015 Shaping a publisher for tomorrow
149142
133 131 131
110
0
40
80
120
160
2010 2011 2012 2013 2014 Oct '15 2020
Production FTE
Snapshot #5: BILD print staff consistently aligned with market conditions
7 Dec. 9, 2015 Shaping a publisher for tomorrow
100 97 96 96 98 94
2010 2011 2012 2013 2014 10/2015
100 117 125 152 194 217
2010 2011 2012 2013 2014 10/2015
100 96 94 92 90 85
2010 2011 2012 2013 2014 10/2015
-6%
-15%
+117%
BILD Group Newsrooms(FTEs)
(2010 = 100)
BILD Print, Newsroom(FTEs)
(2010 = 100)
BILD Digital, Newsroom(FTEs)
(2010 = 100)
Additional significant cost reduction potential
8 Dec. 9, 2015
• Efficient circulation management across all titles
• Continuous optimisation of our printing locations &
our printing network
• Dynamic streamlining and realignment of staff across
the entire value chain
Shaping a publisher for tomorrow
9
Positive development of TV advertising revenues at N24: 2015 a record high
Dec. 9, 2015
104113
100 97108 107
0
25
50
75
100
125
2010 2011 2012 2013 2014 2015e
TV advertising revenues at N24 (2010 = 100)
Acquisition
+9%
Shaping a publisher for tomorrow
10
Continuing positive trend in digital paid content offerings
Dec. 9, 2015
209240 253 260 282 293
53
5658 64
6670
262
296311
324348
363
0
100
200
300
400
Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15
274 258
196
SZ FAZ FCB
Digital paid content subscribers (in thousands) (IVW) Comparison subscribers/members(in thousands)
Print Print
Shaping a publisher for tomorrow
5.10.15 7.10.15 9.10.15 11.10.15 13.10.15 15.10.15 17.10.15 19.10.15
11
Anti-adblocker initiative: Successful kick-offleads to increase in marketable reach
BILD users with active adblockers (in %), Desktop
-70%
Dec. 9, 2015 Shaping a publisher for tomorrow
12
We are shaping our markets (1/2):Start of TV marketing with Viacom1
Dec. 9, 2015
51% 49%
1. Subject to anti-trust approval by the German cartel authority
Shaping a publisher for tomorrow
13
We are shaping our markets (2/2): Sales Impact#1 retail newspaper distributor in Germany
Dec. 9, 2015 Shaping a publisher for tomorrow
14
Outlook 2016
Dec. 9, 2015
Effects of 2014/15 cost reductions
Continuing clear focus on costs
Accelerated digital transformation
Shaping a publisher for tomorrow
5
Axel Springer Capital Markets DayDecember 9, 2015
Henry Blodget, CEO & Editor-in-ChiefJulie Hansen, President & COO
SMART STORYTELLING FOR THE DIGITAL GENERATION 2
2007
2015
2016
WHAT YOU NEED TO KNOW 3
A global digital news organization that delivers high-impact, smart business stories with a focus on key verticals: tech, finance, markets, geopolitical affairs, and management
strategy — for a new generation of leaders.
Source: comScore Multiplatform Report, October 2015. Excluding Yahoo! Finance
NO. 1 US BUSINESS SITE
38MM US Uniques: Desktop and Mobile
0
5
10
15
20
25
30
35
40
45
50
Jan 14 Mar 14 May 14 Jul 14 Sept 14 Nov 14 Jan 15 Mar 15 May 15 Jul 15 Sept 15
Business Insider
AOL Money & Finance
Bloomberg Network
CNBC.com
CNNMoney.com
Economist.com
Financial Times
Forbes.com
WSJ Network
Mon
thly
Uni
que
Visi
tors
in m
illio
ns
4
Source: comScore Key Measures, UK edition, October 2015.
NO. 1 IN UK ALSO
0
1
2
3
4
5
Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sept-15 Oct-15
Business Insider
Bloomberg.com
Economist.com
Forbes.com
FT.com
Guardian Business
WSJ.com
Quartz.com
Mon
thly
Uni
que
Visi
tors
in m
illio
ns
4MM UK Uniques: Desktop and Mobile
5
Source: Ooyala, Facebook, YouTube, MSN, Yahoo
TREMENDOUS VIDEO GROWTH
Mon
thly
Vid
eo V
iew
s
486MM monthly views across all platforms
6
Source: NewsWhip (June 2015); Reflects sum total of likes, comments, shares, Retweets, replies, and favorites
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Business Insider The Wall StreetJournal
Forbes Quartz Harvard BusinessReview
Financial Times
Thou
sand
s
Social Interactions (Facebook & Twitter)
CONTENT OPTIMIZED FOR SOCIAL 7
LARGEST US BUSINESS NEWS SITE 8
Sources: 1comScore Media Metrix (October ); 2Google Analytics (October 2015)
#1Largest US business
news site1
38MMUS Uniques1
40%Sessions from social2
55%Mobile + Tablet Traffic1
LAUNCHED IN 2015 9
Created for the digital generation, Tech Insider tell stories through the lens of technology, science, and digital culture, exploring the
innovations that are changing the world.
Typical Tech/Science Publication Target:
• Techies
• Scientists
• Small vertical communities
Tech Insider’s Target:
• Digital generation
• Smart people fascinated by the world around them
• Consumers who care about how technology, science, and innovation are changing our world
TECH INSIDER’S AUDIENCE 10
11
Sources: 1comScore Multiplatform (October 2015); *includes on-site and off-site streams (e.g. Facebook, YouTube, etc.)
5MM+global uniques1
190M+monthly video streams*
1MM+Facebook Fans
67%Mobile/tablet1
65%Users from social1
12REACHING MILLENNIALS
71%58% 56% 51% 45% 41%
16%
22% 23% 25%28% 28%
12% 19% 19% 20% 26% 29%
DIGITAL AUDIENCE COMPOSITION:
P50+
P35-49
P18-34
IndexP18-34 238 194 186 172 149 136
LAUNCHING IN 2016 13
Amazing stories about what you actually want to know, delivered to you where you already are, when you want it, in
ways that take full advantage of the digital medium.
500K+Facebook Fans
135MM+monthly video
streams1
Introduced on social September 2015
1Source: Ooyala, Facebook, YouTube, MSN, Yahoo
14
DISTRIBUTED PUBLISHING
BI content is distributed on all major
social platforms including:
• Apple News
• Facebook Instant Articles
• Tumblr
15
BI FILMS
BI Films extends Business Insider's massively popular original short-form video content into the realm of web series, shorts, and feature-length documentaries.
IKARIA:Secrets Of Long Lives Lived Well
LEAGUE OF MILLIONS: Inside The Gaming Phenomenon
Upcoming:
Web Series ShortsDocumentaries
16
1717BI INTELLIGENCE
Research For The Digital Age
BI Intelligence is a premium research, offering subscribers business intelligence for the digital age.
We provide actionable insights that enable smarter and better informed decision making.
Mobile — Payments — Digital Media — E-Commerce — IoT
1818
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
06 Jan 12 06 Jun 12 06 Nov 12 06 Apr 13 06 Sep 13 06 Feb 14 06 Jul 14 06 Dec 14 06 May 15 06 Oct 15
Individual Enterprise
BI INTELLIGENCE
Growing through B2B and B2C subscriptions
19
IGNITION brings together the brightest minds in media and technology to share what they see on the horizon. Through unscriptedinterviews, cutting-edge demos, and insights from industry pioneers, attendees learn about the key trends to be aware of and what they need to do to stay ahead of the digital game.
December 8-9, 2015 Time Warner Center, NYC
December 8-9, 2015 Time Warner Center, NYC
IGNITION: Future Of Digital
19
KEYS TO OUR SUCCESS
We started with a simple theory…
• New medium
• New “native” storytelling and distribution
• Focused 100% on digital
• Didn’t try to mimic print or TV
• Fast, informative, smart, social
20
DIGITAL JOURNALISM
180 digital journalists in New York, San Francisco, London, remote posts
Proprietary content management system, “Viking”
Relentless innovation in formats and digital story-telling techniques
Embracing social and mobile
21
FUTURE PLANS
Subscriptions
International
22
SUBSCRIPTIONS
In addition to ambitious growth plans for Business Insider Intelligence, we plan to test a consumer subscription in 2016.
Details are still being worked out.
We believe subscriptions will be a good option for ad-blockers.
23
AD-BLOCKING
Ad-blocking remains steady at nuisance but not crisis level.
We have not seen an increase from mobile ad-blocking apps in Safari.
We are monitoring it closely and will evaluate “ad recovery” and other steps to thwart ad-blocking, including the Bild ad-blocking project.
0%
4%
8%
12%
16%
20%
18 Sep 23 Sep 28 Sep 3 Oct 8 Oct 13 Oct 18 Oct 23 Oct 28 Oct 2 Nov 7 Nov 12 Nov
Business Insider Tech Insider UK Business Insider
24
INTERNATIONAL
There are currently 9 BI “editions”
2 O&O
7 active licenses + 1 rep agreement
3 licenses not yet launched
6 new territories in active discussions
Business Insider editions:
25
OPPORTUNITIES WITHIN AXEL SPRINGER
Partnership with Finanzen.net:
Business Insider Deutschland Market Data functionality on Business Insider US
26
OPPORTUNITIES WITHIN AXEL SPRINGER
Partnership with ONET to publish Business Insider Poland, launching in 2016
Exploring other territories as well
27
6
upday - where journalismand algorithm join forces
Peter Würtenberger CEO updayBerlin, December 9, 2015
upday is currently available for flagship and select non-flagship Samsung smartphones in its beta version at Google Play (restricted to Samsung devices) and the Samsung App Stores in Germany and Poland.
Megatrends in news consumption
Always on
Debundling
Relevance
MobilePublishing
Distributionof Content
Personalized
Recommendations
Source: Reuters Digital News Report 2015
NewsRepublic
FlipboardFacebook Notify
Apple News
2
Social Media as source of newsTypes of news content accessed weekly
Smartphone news use 2012 - 2015
28
%
28
%
20%
21
%
28
%
29
%
24
%
22
%
31
%
33%
35
%
32
%
44
%
42
%
37%
34%
USA UK FRANCE GERMANY
2012
2013
2014
2015
30%
23%
19% 23%
40%
36%
34%
25%
USA UK FRANCE GERMANY
2014 2015
• World market leader Consumer Electronics• Smartphone market share in Europe 35% /
50M units sold p.a. (for reference: Apple market share 21%)*
• Engineering excellence• Distribution network via own and third party
retail channels and telcos
3
Tech... ...meets media
A true strategic partnership (announced 09/2015)
• The leading digital publisher in Europe• > 100M. Unique Users within Europe• 73% of the total group’s EBITDA and 81%
of the ad revenues are digital **• Journalistic excellence• Pioneer in digital transformation of
advertising and paid content
Symbiosis of complementary competencies of both parties*Source: http://www.counterpointresearch.com/q12015mobilemarket - Q1/15 figures** 9M/15 Results
What is upday – and what are its USPs
Recommendation by Man & Machine
Single Source for ALL News
Top NewsCarefully selected &
summarized byeditorial team
My NewsUpdates based on learning algorithms
Access to all kindsof Digital Sources
Premium Content
News brands, blogs, videos, social
Access behindselect paywalls
Symphony Concept
Compilation ofMy-News-stream
„Journalistic“ andsymphonic
Leaning back, feeling updatedand entertained
upday provides the best available international news content matching personal interests, exclusively to Samsung users
4
Live-Demo
5 5
RecommendationJournalists + Algorithm
PublishersGet most relevant users
AdvertisersGet most relevant customer
UsersGet most relevant information
NEWS
(Paid content*)
6
The upday ecosystem
* Paid Content introduction: Planned for late 2016
Publishers Advertisers
Approaching a targeted audience with non intrusive ad-formats
Reaching new audiences in an ad-blocker-free environment
Creating opportunities for publishing partners and advertisers
The -HighwayGetting direct access to the customers of the market
leading smartphone manufacturer
Ad-block-free environmentContent will be displayed in an upday-proprietary
browser, which does not permit ad-blocking.
Articleteaserview in upday
Full mobile viewoutside upday but displayed in upday-proprietarybrowser
Desktop ad $ decline as mobile grows(US, in bn. USD)
Rev
enue
in b
n. U
SD
7
upday advertising concept
Desktop ad $ decline as mobile grows(Market Analysis on USA, in bn. USD)
* includes other internet-connected devices I Source: eMarketer, March 2015 I WSJ.com
Desktop ad revenues
Mobile ad revenues
Rev
enue
in b
n. U
SD
8
• Demographics• Categories• Behaviour• Location• Weather
The upday advertising concept
TargetedAudience
DistributionChannel
Format
DirectSales
Display Native Video
Program-matic
Sales
Display Native Video
9
Countries Devices
Opportunities to scale business and reach
Positioning
upday is currently available for flagship and select non-flagship Samsung smartphones in its beta version at Google Play (restricted to Samsung devices) and the Samsung App Stores in Germany and Poland.
10
7
Axel Springer’s Digital Classifieds FamilyMore than the sum of its partsCapital Markets Day – Berlin, December 9, 2015
Dr Andreas Wiele, President Marketing and Classified Ad Models
Our Classifieds Portfolio 2005 - 2008:Two low-margin businesses
2
* Stepstone consolidated at-equity
Dec. 9, 2015 Axel Springer’s Digital Classifieds Family
-2
-7-6
1
2005 20082006 2007
EBITDA (in €m)*
Our Classifieds Portfolio since 2009:Strong organic and anorganic growth
3
512
403330
223
10851
218164134
65174
2015e2010* 20122011* 20132009* 2014
EBITDA (in €m)Revenues (in €m)
* Unaudited figures
Dec. 9, 2015 Axel Springer’s Digital Classifieds Family
Principle 1: Founders/„Hired Founders“ first
Retain founders with equity or
establish highly incentivized management teams
Trustful partnership: “long-leash-policy”
Smart Synergies
Operational Independency
4
Headquarter
Founder
Dec. 9, 2015 Axel Springer’s Digital Classifieds Family
Majority of Axel Springer’s classifieds assets areled by the founder or the hired founder teams
5
4 Founder Teams 5 „hired Founder“ Teams 3 new Management Teams
Previous owner: Big corporation
Founder Exit
Dec. 9, 2015 Axel Springer’s Digital Classifieds Family
Principle 2: Value-adding Portfolio Management
Only compliance-relevant corporate services are mandatory
(Financial Reportings , Audit , Tax etc.)
All other corporate services have to be „sold“ to Portfolio Companies
Portfolio Companies are required to „listen“ and buy-in if truly beneficial
Clear focus on value-adding activities
6 Dec. 9, 2015 Axel Springer’s Digital Classifieds Family
Adding value over time: Short term
• Example: Over 300 partners with corporate framework agreementsPurchase
• Example: Leverage reach of all AS sites for new assetsTraffic
• Example: Temporary support and expertise within functions like M&A, legal, IT and many moreResources
• Example: Create network to exchange experience in topics like SEO, Social, MobileKnow-how
7 Dec. 9, 2015
Short term Mid term Long term
Axel Springer’s Digital Classifieds Family
Deep Dive Example: Know-how exchange is thebest synergy
Best-practice expertise
Over 45 Expert rounds, Workshops and Summits in the areas of Product, Technology, Monetization, Reach, Strategy, M&A, HR and Finance
Peer-to-peer-network
i.e. CTO Workshops, Communication Conference, Marketing Roundtables, Executives Dinners
Corporate-to-peer-network
i.e. Management Summit, CxO Summit, Townhall Meetings
Post-merger integration
Share and reapply best practice for each function and department
Dec. 9, 20158 Axel Springer’s Digital Classifieds Family
Adding value over time: Mid term
• Example: Cooperation and Integration of Immowelt in Meinestadt.de, joint sales Bonial* and Media ImpactRevenue
• Example: Add-on acquisitions for @leisure, Stepstone, Yad2, ImmoweltM & A
• Example: Launch of Jobim with Yad2, Axel Springer Plug & Play Accelerator (Jobspotting, Karosso, Rentse, Retravel, Linkedage, getjob, room.me, Zizoo, instaff...)
Disruption
• Example: COO Bonial, COO Idealo, COO Stepstone, MD Stepstoneare all former Axel Springer portfoliomanagersHR
• Example: Joint Development Center for Immoweb and Stepstone in PolandInfrastructure
9 Dec. 9, 2015
Short term Mid term Long term
* Example for synergies with our marketing models
Axel Springer’s Digital Classifieds Family
Dec. 9, 201510
Deep Dive Example: Joint development centerfor Stepstone and Immoweb
>190 FTEs
Axel Springer’s Digital Classifieds Family
Adding value over time: Long term
• Example: In-depth business and market understanding, betterjudgement in M&A processes
Market Knowledge
• Example: Operational and geographical infrastructureScale
• Example: Efficiency through one platformTechnical Platform
• Example: Single-Sign-On, Unified Smart DataBusiness Platform
11
Short term Mid term Long term
Dec. 9, 2015 Axel Springer’s Digital Classifieds Family
Deep Dive Example: Business platform throughunified smart data and single-sign-on
Dec. 9, 201512
userprofiles
Potential benefits:
Personalized offers andproducts
Cross-traffic generation
Cross- and up-selling
Data driven ad sales
Axel Springer’s Digital Classifieds Family
8
www.stepstone.com
Ralf BaumannCEO StepStone9th December 2015
StepStone – Strong Growth
www.stepstone.com 22
Agenda
Market Update
Company Update
Performance & Growth Details
Outlook
www.stepstone.com 33
StepStone – Strong Growth
McKinsey investigated the future of online talent platforms
Matching individuals with traditional jobsMatching individuals with traditional jobs
Post full-time or part-time jobs
Create online resumes of individuals
Search for talent or work
McKinsey investigated the future of online talent platforms
www.stepstone.com 44
StepStone – Strong Growth
McKinsey investigated the future of online talent platforms
Matching individuals with traditional jobsMatching individuals with traditional jobs Talent managementTalent managementOnline marketplaces
for contingent workOnline marketplaces for contingent work
Post full-time or part-time jobs
Create online resumes of individuals
Search for talent or work
Connect individuals and freelance work
Facilitate transactions via transparent reputation
Assess candidates and fit
Personalize talent management
Optimize team formation and matching
McKinsey investigated the future of online talent platforms – and divided the market into three segments
StepStone market position
www.stepstone.com 55
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Reve
nue
Gro
wth
201
4/20
15 H
1
Revenue Index (average revenue 2014 in € = 100)
eSourcing Companies: Revenue Growth ‘14-H1/’15-H1(in local/reported currency)
StepStone – Strong Growth
Continued growth above market peers
Note: Xing and LinkedIn include recruitment solutions only (i.e. excl. subscriptions and general advertising), Seek (AU) includes “Seek Domestic” revenues (i.e. eSourcing in Australia) // Source: Company reports
US+AmericasAPAC
Int’lEurope
Jobindex
Monster Worldwide
Seek
StepStone
Indeed
DICE
Zhaopin Online
JobsDB Brasil Online
OCC
Naukri
51Job
’07-’13
’13-’14
500200100500 150 250
www.stepstone.com 66
StepStone – Strong Growth
How aggregators work…!
www.stepstone.com 77
StepStone – Strong Growth
How aggregators work…!
Revenue SourcesRevenue Sources
Google AdSense
• Host of pay-per-click ads on Indeed’s websites. Ads usually appear next to job search results
Google AdSense
• Host of pay-per-click ads on Indeed’s websites. Ads usually appear next to job search results
Direct Sales
• Direct approach of recruiters / employers to sell spon-sored links / form partnerships
Job board traffic expenses
• Job boards acquire traffic from Indeed via sponsored jobs on a pay-per-click basis
Job board traffic expenses
• Job boards acquire traffic from Indeed via sponsored jobs on a pay-per-click basis
1 2 3
~ 50% of revenue ~ 30% of revenue ~ 20% of revenue
www.stepstone.com 88
StepStone – Strong Growth
LinkedIn highlights the renaissance of job boards
www.stepstone.com 99
StepStone – Strong Growth
LinkedIn highlights the renaissance of job boards
Global quality of hires Global quantity of hires
Question: Think about your key quality hires in the past 12 months. Which were the most important sources?
Question: How significant were each of the following as a source of white collar professional for your organisation in the last 12 months?
Source: LinkedIn Talent Solutions: 4th annual report “2015 Global Recruiting Trends”
www.stepstone.com 1010
StepStone – Strong Growth
StepStone customer with hiring focus in IT and engineering proves strong StepStone performance
350
3040300225
0
375450
0
825
0
340150
0
450
1,700
3,700
2,700
Social Network 1 StepStone Job Board 2 Job Board 3
+118%
Social Network 2Job Board 1
9M 2013
9M 20159M 2014
% 2015 75% 12% 0% 4% 9% 0%
Job Listings
www.stepstone.com 1111
Applications per Job Ad in Germany
StepStone – Strong Growth
StepStone by far with highest resonance and quality of applicants
15.6
3.3
5.1
6.0
2.2
x 2.6
x 3.1
x 4.7
x 7.1
2013
Competitor
Competitor
Competitor
Competitor
2015
17.4
3.5
4.6
3.3
x 2.7
x 3.8
x 5.0
x 5.3
6.5
Source: TNS Infratest
2014
19.0
5.3
5.4
3.7
x 3.2
x 3.5
x 3.6
x 5.1
5.6
www.stepstone.com 1212
A portfolio of leading brands
StepStone – Strong Growth
StepStone countries & brands
Germany
UKBelgium
Ireland
South Africa
Austria
France
Northern Ireland
Luxembourg
Central America
Caribbean
Mauritius
20countries
1,500employees
95%+of revenue from #1 positions
60,000customers
500,000Listings p.m.
44,000,000Visits p.m.
Source: Internal measurement
www.stepstone.com 1313
StepStone – Strong Growth
A portfolio of leading brands
65,000customers
60,000
Total size of our UK & GER markets:
>600,000potential customers (>10 employees)
www.stepstone.com 1414
A portfolio of leading brands
StepStone – Strong Growth
StepStone countries & brands
Germany
UKBelgium
Ireland
South Africa
Austria
France
Northern Ireland
Luxembourg
Central America
Caribbean
Mauritius
20countries
1,500employees
95%+of revenue from #1 positions
60,000customers
500,000Listings p.m.
44,000,000Visits p.m.
Source: Internal measurement
1,800employees
65,000customers
550,000Listings p.m.
49,000,000Visits p.m.
1,500
60,000
500,000
44,000,000
www.stepstone.com 1515
Solid revenue growth since 2004 with average growth of 30% p.a. and only one year (2009) with declining revenue
StepStone – Strong Growth
Note: consolidated revenue StepStone Group (schematic)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
262.2
256.4
198.9
9 months:
www.stepstone.com 1616
StepStone – Strong Growth
StepStone group revenue 9M 2015
StepStone revenue doubled since 2012 due to balanced organic and inorganic growth strategy
Continued investment in UK candidate delivery (website conversion and online traffic)
Continuous product update in all markets
Leveraging UK jobboard cooperation through multi-brand strategy in UK markets
Ongoing optimisation of sales structure and organisation
Overall EBITDA-margin of 44.9% including acquisitions with lower margins
2015 – Growth Highlights
Revenue9M 2015
Organicgrowth
Inorganicgrowth FX-effects
262.2
9M 2014:185.4
www.stepstone.com 1717
StepStone – Strong Growth
StepStone M&A activities are unraveled into three components
Job Boards“more of the same”
Objective
Profit enhancement through leveraging
operational excellence
Approach
#1 or #2+ with potential
Leverage know-how and capabilities
Approach
Know-how acquisition
Speed up time to market
Accelerate own growth
Objective
Enhancing our existing product portfolio
Approach
Business diversification
Speed up time to market
Accelerate own growth
Objective
Leveraging disruptive potential
Capability investments“enhance our job board”
Disruptive HR“long-term sustainability”
www.stepstone.com 1818
40 companies visited
Deep understandingof current R&D
in Start-ups
400 companies researched
Holistic overview oftrends and upcoming
HR related innovations
StepStone – Strong Growth
Screening of US market did not show any surprising developments
0 Highly disruptivethreats found
Ideas for technological advancement and product
enhancements
www.stepstone.com 1919
StepStone – Strong Growth
FC 201520142013
4,7%
6,4%
8,0%
StepStone sets up for future growth – Transformation into a high-tech organisation with focus on Product and IT development
67
122
10
136
FC eoy 2015 1.804
ITdevelopment
Other
eoy 2014 1.469
Productdevelopment
Sales andCustomer Service
Revenue
Capex
Development HeadcountDevelopment Revenue and Capex
779
82
241
377
+15%
+12%
+51%
+18%
www.stepstone.com 2020
StepStone – Strong Growth
Widening of our E-Sourcing activities increases coverage of hiring process and adds value to all stakeholders
Start job search
Job matching
Browse jobs
Researchemployer
Research salary
Interview
Apply
Hire
Personal development / Career Advice
Product PortfolioToday
www.stepstone.com 2121
StepStone – Strong Growth
Widening of our E-Sourcing activities increases coverage of hiring process and adds value to all stakeholders
Start job search
Job matching
Browse jobs
Researchemployer
Research salary
Interview
Apply
Hire
Personal development / Career Advice
Project Skylight
Salary information and comparison
Useful insights for job seekers into corporate culture and working atmosphere
Reviews are open for comments and help employers to build a more truthful picture
B2B Pilot in Ireland ongoing
Product PortfolioToday
www.stepstone.com 2222
StepStone – Strong Growth
Widening of our E-Sourcing activities increases coverage of hiring process and adds value to all stakeholders
Start job search
Job matching
Browse jobs
Researchemployer
Research salary
Interview
Apply
Hire
Personal development / Career Advice
Staying true to our candidate centric approach to enhance user experience and customer satisfaction
Developing new products and services to satisfy market demands
Working towards the main goal: match the right candidates with the right jobs
Future ProductPortfolio
www.stepstone.com 2323
StepStone – Strong Growth
Defining the future scope of talent platforms McKinsey states:
www.stepstone.com 2424
StepStone – Strong Growth
Defining the future scope of talent platforms McKinsey states:
In 2025, online talent platforms can increase global GDP by 2%
$ 2,700,000,000,000
We will shape the future…
www.stepstone.com 2525
…and get our fair share!
StepStone – Strong Growth
Growth will come from:
Penetration of existing markets (‘long tail’) Enlargement of
product portfolio along
our core business
Higher demand within firms to get support in finding the right talentFurther development of
market position
Relevant acquisitions
4
2
3
1
5
…and get our fair share!
9
Monetizing the advantageof a specialist offering
Roland Tripard, CEOAxel Springer Capital Markets Day
Berlin, December 9th, 2015
2
A specialist offer dedicated to answer every housing needand serving professionals needs
More to come…
3
Leading the game of innovation to better serve consumers
4
Offering innovative new services to professionals
Services provided with the new SeLoger Pass Previous offer
Show your professionalism Agents directoryNew Directory Premium placement
Agent logoLink to Agent site
Race to mandates New Leads from potential sellersNew Automated valuation toolNew Promotion kit
Sold propertiesFind buyers and tenants Classifieds listing Listings on SeLoger and partners
Listings in email alertsListings on Immostreet and partners
New Boost alertsClassifieds New Premium placement Golddifferenciators New Premium placement Silver
Exclusive mandate FlagContacts management Potential buyers leads
Profiled leadsNew Matching mandates / buyers-tenants
Effective ways to journey New Listing certificate with performancewith the sellers New Landscape of similar properties
New Market intelligenceChange in price Alerts
Manage your business New Performance recordsNew Listings dashboard and statisticsNew New back-office interface
5
Market intelligence tools empower professionals…
Select an area Select type of
transaction…
… and type of property
Then, compare global offer with demand
6
…by offering in-depth view by segment of users demand
See demand per type of property / surface
7
Allowing agent to compare his portfolio withcompetition and market demand…
Agent portfolio Competitorsportfolios
Browsing of the users
Breakdown of listings by type of property
8
…with many different criteria
Breakdown of listings by number of rooms
Breakdown of listings by surface
9
Delivery of performance with record high leads
0
50
100
150
200
250
Jan-Oct 2014 Jan-Oct 2015
Cum
ulat
ed v
isits
in m
illio
n
Traffic Mobile
Desktop
21212222232324242525
Jan-Oct 2014 Jan-Oct 2015
Cum
ulat
ed le
ads
in m
illio
n
Leads
-2%
+25%
+10% +13%
Source: Company – SeLoger website only
10
Increasing engagement with users
0K
100K
200K
300K
400K
500K
600K
700K
X 2.2
Monthly email alerts subscriptions
Source: Company
11
Big volume of leads but also big value per lead
1,500 EUR per month
200,000 EUR
< 500 EUR per month
Source: Rapport étude quantitative – June 2014
Main generalistCompetitor
Value of the average Buy search
Value of the average Rent search
400,000 EUR
12
Quick adoption of the new offers
Source: Company
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sep 14 Okt 14 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15
Migration of customers to new offers and tariffs
Migrated customers New customers Price adjustment Customers to migrate
13
…and delivery of more and more useful options
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
% from 0 to 100€
% from 100 to 200€
% from 200 to 250€
% from 250 to 300€
% from 300 to 350€
from 350 to 400€
from 400 to 450€
from 450 to 500€
from 500 to 600€
from 600 to 800€
% over 800€
Breakdown of customers per ARPU rangeSeLoger only
Dec-12
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Source: Company
14
How it translates into ARPU… despite market conditions
376393
419
455
500
564
411
439
470
515
565
639
Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Oct 2015Datenreihen4Datenreihen3
+75€
+35€
EUR monthly
Source: Company -14%
-1% -3%
8%
-20%
-15%
-10%
-5%
0%
5%
10%
2012 2013 2014 2015
Change in total transactions (residential)
15
Positive impact of better market conditions already visible on estate agents revenues
Source : Commissariat Général au Développement Durable
Annualizedtrend : +1.5%
Source : Syndicat National des Professions Immobilières SNPI, Q2 2015
Quarterly revenue of French estate agents (resale fees)
16
Source : Commissariat Général au Développement Durable + INSEE
August 2015 : 740 k
And better market conditions ahead
Last 12 months resale transactions( Base 100 = December 2000)
10
1
Immowelt & Immonet
Two are better than one
Ulrich Gros – CFO of Immowelt Capital Markets Day, Dec 9th 2015
22
Immowelt & Immonet: two leading online real estateportals in Germany – competitors until 2015
Focus on Germany
270 employees 250 employees
located in Nuremberg located in Hamburg
Founded in 1991,launched in 1996 Launched in 2003
two powerful brands
both equal #2 in the market
two competitors
33
Contracts were signed in February, integration started in July after antitrust approval
COLOGNEBERLIN MUNICH
IMMOWELT FOUNDERSNUREMBERG
IMMONET GMBHHAMBURG
IMMOWELT AGNUREMBERG
IMMOWELT HOLDING AGNUREMBERG
55% 17.5% 17.5% 10%
100%
Note: simplified illustration
SHAREHOLDER STRUCTURE
44
Joining forces provides advantages Two are better than one!
Note: simplified illustration
Employees(headcount)
Know-how(skills & experience)
DIMENSION &
+ PARTNERSHIP+ PERSONAL CONTACT
+ INNOVATION+ PROFESSIONALISM
Branding(budget)
+ FOCUS & REACH+ AWARENESS
+ SERVICE LEVEL + SERVICE DEPTH
Processes(value chain depth)
Technology(usage)
+ MUCH FASTER+ SCALE & EFFICIENCY
Software(engineering effort)
+ BEST OF 2 WORLDS+ SCALE
55
Redressing the balance on the market:Creating a strong alternative
Agents
Developers
Housing Industry
Banks
PrivatePersons
Consumers
Investors
Developers
…
Supply Demand
Note: simplified illustration
other
6
Currently we are running the biggest campaign in the company's history
83%MORE
VISIBILITY
BRAND AWARENESS
Source: Innofact AG, May 2015 – Oct 2015
77
Immowelt - Branding is already paying off
Immowelt with strong traffic surge in 2015 –visits have grown by nearly 30% year-over-year
DemandSupply
Monet ize
Q3 2015
Visits onImmowelt
Q3 2014
+29%
Source: Immowelt (Adobe Analytics)
88
Immowelt & Immonet: A perfect fit on demand side
1) Graphs show search volume of top 10 regions in relation to peak region on the map normalized at 100 (IW&IN values added)Sources: Google trends, Nov. 2015
Demand: increased nationwide coverage through combination
Search volume per region
D a r k e r s h a d e = h i g h e r s e a r c h v o l u m e
Consumer find overall more than
unduplicated listings
400.000
DemandSupply
Monet ize
99
Immowelt & Immonet: A snapshot on regional listings
A snapshot of listings in Germanys top 15 cities shows already strong presence for Immowelt and Immonet1
DemandSupply
Monet ize
1) Number of listings shown on the portal on Nov.25th 2015; duplications between Immowelt & Immonet adjusted by 20%;Top 15 cities by number of inhabitants;Sources: Immowelt, Immonet, Immoscout24
Real Estate markets are REGIONAL – not national
# For Rent IW IN [IW + IN] IS24
1 Berlin 1.351 1.972 2.658 5.312
2 Hamburg 717 1.819 2.029 1.769
3 München 509 465 779 1.342
4 Köln 219 310 423 1.286
5 Frankfurt a. M. 367 349 573 1.441
6 Stuttgart 165 164 263 345
7 Düsseldorf 419 527 757 1.697
8 Dortmund 212 441 522 1.147
9 Essen 393 627 816 1.861
10 Bremen 257 478 588 968
11 Leipzig 3.143 3.936 5.663 5.692
12 Dresden 1.117 1.909 2.421 2.552
13 Hannover 69 153 178 595
14 Nürnberg 617 300 734 580
15 Duisburg 698 947 1.316 1.952
# For Sale IW IN [IW + IN] IS24
1 Berlin 4.959 5.898 8.686 11.494
2 Hamburg 1.481 2.996 3.582 3.305
3 München 1.310 1.092 1.922 2.682
4 Köln 432 482 731 1.861
5 Frankfurt a. M. 688 679 1.094 1.515
6 Stuttgart 415 333 598 1.019
7 Düsseldorf 450 476 741 1.553
8 Dortmund 688 673 1.089 1.959
9 Essen 671 596 1.014 1.547
10 Bremen 566 606 938 904
11 Leipzig 1.420 1.387 2.246 2.663
12 Dresden 1.023 1.170 1.754 2.618
13 Hannover 197 352 439 995
14 Nürnberg 1.232 688 1.536 1.259
15 Duisburg 614 672 1.029 1.722
[IW + IN] > 100% of IS24[IW + IN] > 70% of IS24
1010
Significant performance increase for agents – DUO1
guarantees visibility on both portals and more leads
Initial results show that DUO customers may more than DOUBLE their leads2
DemandSupply
Monetize
+112%
Jun-Oct 2015Jan-May 2015
1) DUO-listing automatically published on Immowelt & Immonet 2) Average number of leads (email-requests) per listing/ day; Jan-May Immowelt; Jun-Oct Immowelt+Immonet (DUO); n=1650Sources: Immowelt, Immonet
+
Average number of leads
1111
20152014
Immowelt & Immonet: Significant potential ahead!DUO enables us to grow and invest for our customers
Sustainably increasing ARPU due to low agent overlap and the focus on monetizing value
DemandSupply
Monetize
ARPU (Average Revenue per User (Agent)); monthly revenues of Immowelt + Immonet, divided by the number of agents (duplications eliminated, estimated before Jun15) Sources: Immowelt, Immonet
150 €
175 €
200 €
225 €
0112 0706050403020706050403 0901 1008 0809 10 1102
218 €
+15%
ARPU
1212
Outlook: Continuous growth in brand-awareness, performance, revenues and EBITDA
BRANDING-INVESTMENT
INCREASING REVENUES
HIGH PROFITABILITY COOPERATIONS
DemandSupply
Monetize
High investments in the Immowelt-brand (Online-/TV-campaigns)
After investments in the Immowelt-brand EBITDA-margin to increase to +40%
40%EBITDAmarg in
Uplift in performance through new cooperations(e.g. meinestadt, kalaydo)
Revenues to grow with a double-digit CAGR over the next five years
+xx%
11
Israel’s Leader In Classifieds
Yavin Gillmore - CEO Yad2: Hebrew for “second hand”
Israel – Key Statistics
GDP per capita
32.7K$
Unemployment rate
6.3%
Largest cities Jerusalem - 831K
Tel Aviv - 422K Haifa - 276K
68% Own a house
100% tax rate for new
cars
75% smartphone penetration
Population
8.3M GDGDGDGDPPPP
peperr cacapipitata
32.7K$
UnUnUnUU mememeemeeememme plplplplpplloyoyoyoyoymmmemmmmmem ntntntnnrarararatetetetet
6.3%
LaLa grgggggrggeseseseesesesttttttt cicccccccic titiesesJerusalel m - 838311KK
Tel Aviv - 422KHaifa - 276K
666888888%%%%%%Own a house
1111111000000%%%%%%tax rate for new
cars
7777777777755555%%%%%%%%%%%smartphonepenetration
oPoPoPopupupulalalatittiti nononon
8.3M
2
Tel Aviv - "Silicon Wadi"
Entrepreneurs Global ideas Digital companies
Startup nation
3 Israel – Key Statistics
#1 Real Estate
#1 Cars
#1 Second Hand
Leading Position
#1 Generalist
4
Over 500K daily visits
Over 16M monthly Visits
10K new ads per day
12 minute average time on site
4th Ranked Local Website In Israel
Similar Web Ranking - Israeli Websites
4
375 619
yad2.co.il
winwin.co.il
homeless.co.il
walla.co.il
Ynet.co.il
mako.co.il
12
11
6
5
5
Yad2’S 5 Principles For Enhancing Leading Position
Free Ads Brand Strengh
Quality of
Service
Innovation / VAS
Economies Of Scale
6
97% aided brand awareness
Continue marketing spend across all platforms
Paid - Search - Social - Referral
Free - Direct 25% - Search
Brand 60% Non Brand 4%
- Social 5%
6%
94%
Marketing - Continues Brand Investment
Traffic
7
A mobile first company
Strong Social interaction (WhatsApp, FB)
58% Visits – Mobile 8
Yad2 – Overview 9
Yad2 – Overview
Display
D
ispl
ay
Private
Professional
10
Yad2 – Overview
RE Developers New Cars Leasing
Free
RE agents Car dealers SMB dealers RE
Dev
elop
ers
New
Car
s Le
asin
g
11
Leading Position
#1 Generalist
#1 Real Estate
#1 Cars
#1 Second Hand
12
Looking Forward - Yad2 Continues To Grow
Organic
#1 Generalist
#1 Real Estate
#1 Cars
#1 Second Hand
13
Organic
Acquisitions
#1 Cars
#1 Second Hand
#1 Generalist
Leading Position in Jobs
#1 Real Estate
Looking Forward - Yad2 Continues To Grow 14
#1 Real Estate
Organic
Acquisitions
Make and share
JOBIM
#1 Cars
#1 Second Hand
#1 Generalist
Looking Forward - Yad2 Continues To Grow 15
12
Creating a global leader
Christian Gaiser, Founder & CEOAxel Springer Capital Markets Day
December 9th, 2015
Page
Your favorite shopping companion...
Dec, 9th 2015 Axel Springer Capital Markets Day 2
...to never miss out on a great deal in your local stores!
Page
Creating a global leader
3
11 countries with 7x strong local brands 330 employees
Ownership: 27.5% founders, 72.5% Axel Springer SE
>22mln global users
Main Focus: US expansion
Dec, 9th 2015 Axel Springer Capital Markets Day
Page 4Dec, 9th 2015
Cost per
engagement
Cost Per Engagement: Simple & ScalableBusiness model
Axel Springer Capital Markets Day
Page
Disrupting a massive print category in the US
5
US Market for
weekly ads
Mass market product used to make
family shopping decisions
Dec, 9th 2015
$15-17bln
of US consumers
use shopping
circulars
74.5%
Axel Springer Capital Markets Day
Page
Reaching consumers at an early point in time
6
Source: Placed & Retale study
% of all US consumers: When would you most likely use digital circulars?
Dec, 9th 2015 Axel Springer Capital Markets Day
Page
Strong growth on mobile
7
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2010 2011 2012 2013 2014 2015e
Mobile share of revenue
Dec, 9th 2015 Axel Springer Capital Markets Day
Page
Winning the US market – our main focus
8Dec, 9th 2015
>5millionDownloads for
Retale‘s best in
class mobile app
>180Retail partners
(compared to 25x
at launch)
Strategy: Invest in long term leadership
Strong and continued traction in the US market:
Axel Springer Capital Markets Day
Page
US: High growth in revenue and reach
9Dec, 9th 2015
2015 2014
Revenue developmentTraffic development
2015 2014
Axel Springer Capital Markets Day
Page
Driving significant uplifts on store visits = ROI
10
Based on our attribution
partners GfK, Placed
9th Decimal, Nielsen
>90% of users actively plan
a shopping trip
70-200%
Uplift on store visits
Higher
Ø-basket size
Dec, 9th 2015 Axel Springer Capital Markets Day
Page
63.7%
19.7%
Bonial.de => Extending strong leadership
Dec, 9th 2015 11
Total reach of kaufDA / MeinProspekt + marketshare of app installs
Reach based on AGOF digital facts 2015-08 + inhouse tracking for non-AGOF devices (Windows Mobile & Kindle Fire) and „MeinProspekt“ platform
Marketshare app installs based on daily tracking of Apple AppStore / Google Play Store Rankings over last 24months
7.5%
6.3%
1.3% tiendeo
0.8% Wunderkauf
0.7% DISCOUNTO
Reach:
5.6 MillionUniqueMobile Users
Marketshare app installs:
Axel Springer Capital Markets Day
Page
Acquisition of Ofertia Group & Joint expansion
12Dec, 9th 2015
Acquired majority of
Ofertia Group
Founders continue to
run the company on a
long term horizon
Joint expansion into
attractive markets -
Southern America &
Scandinavia
Mexico Scandinavia
Axel Springer Capital Markets Day
Page
Our road ahead
13
Is there a more efficient way to
discover great deals in your area?
We think so.
Is there a more efficient way to
discover great deals in your area?
We think so.USA • Germany • France • Spain • Brazil • Colombia • Mexico • Chile • Sweden • Denmark • Norway USA • Germany • France • Spain • Brazil • Colombia • Mexico • Chile • Sweden • Denmark • Norway
Dec, 9th 2015 Axel Springer Capital Markets Day
13
Summary and OutlookCapital Markets Day – Berlin, December 9, 2015
Dr Mathias Döpfner, Chairman & CEO
You can access the webcast of Mathias Döpfner’s speech on our website
www.axelspringer.com/cmd2015
2 Summary and Outlook2 Dec. 9, 2015
Thank Youfor attending our
Capital Markets Day
2015
Investor Relations contacts
Claudia Thomé Co-Head of Investor Relations
Phone: +49 30 2591 77421Mobile: +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 77425Mobile: +49 151 52844459