1 - Axel Springer

14
Capital Markets Day
Berlin, December 10, 2014
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CMD2014
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2014-ASse
CAPITAL MARKETS DAY 2014
“New growth initiatives”
Berlin, December 10, 2014
Axel-Springer-Str. 65, 10888 Berlin
Room “Ernst Cramer”, 19th Floor
AGENDA
1
Keynote
Dr Mathias Döpfner, Chairman & CEO
2
Financials
Dr Julian Deutz, CFO
3
Introduction Classified Ad Models
Dr Andreas Wiele, President Marketing and Classified Ad Models
4
StepStone – A continuous success story
Ralf Baumann, CEO StepStone
5
SeLoger – Reinforced fundamentals for lasting leadership
Roland Tripard, CEO SeLoger
6
Introduction Marketing Models
Dr Andreas Wiele, President Marketing and Classified Ad Models
7
finanzen.net – From startup to Germany’s largest finance portal
Peter Schille and Jens Ohr, Founders & Managing Directors finanzen.net
8
zanox – New data battlegrounds shaping performance
Mark Walters, CEO zanox
9
kaufDA – Creating a global category
Christian Gaiser, Founder & CEO kaufDA
10
MyLittleParis – Successfully monetizing a committed audience
Fany Pechiodat, Founder & CEO MyLittleParis
11
BILD and WELT – Two successful paid content strategies
Donata Hopfen, Publishing Director BILD Group,
Dr Stephanie Caspar, Publishing Director WELT Group
12
Axel Springer Plug and Play – Plugging into the startup scene
Jörg Rheinboldt, CEO Axel Springer Plug and Play
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 10, 2014.
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
Keynote
Capital Markets Day – Berlin, December 10, 2014
Dr Mathias Döpfner, Chairman & CEO
You can access the webcast of Mathias Döpfner’s speech on our website
www.axelspringer.com/cmd2014
2
Dec. 10, 2014
Keynote
2
Financials
Capital Markets Day – Berlin, December 10, 2014
Dr Julian Deutz, CFO
2014: Digital transformation accelerated
2
1
Classifieds transaction – transformational step for Axel Springer
2
Group financials reflect successful digitization
3
Active portfolio management
4
Continuous cost management and attractive financing further improved
Dec. 10, 2014
Financials
1
Major transformational steps for Axel Springer
1
Acquisition of classifieds stake from General Atlantic (GA)
2
GA to become Axel Springer group investor
3
3
Æ Full exposure to classifieds earnings potential
Æ Shows conviction in value creation potential of Axel Springer
Axel Springer plans to change legal form from SE to KGaA
Æ Enables mid- and long-term growth while securing influence
of family holding
Dec. 10, 2014
Financials
1
Partnership with GA has increased the pace of
acquisitions since 2012
April 2012
April 2012 – today
Total investment of ~€800m since April 2012
4
Dec. 10, 2014
Financials
1
Significant margin expansion driven by organic
growth and acquisitions
Revenues (in €m)
EBITDA (in €m)
16%
CAGR: >55%
29%
41%
40%
40%
EBITDA margins
45%
+20%
403
+35%
357
330
CAGR: >100%
296
164
134
223
160
119
65
108
17
2010
2011
2012
2013
9M/13
9M/14
2010
2011
2012
2013
9M/13
9M/14
Note: consolidated figures for Axel Springer Digital Classifieds
5
Dec. 10, 2014
Financials
1
Additional transparency shows high margins for
jobs and real estate
Jobs
EBITDA share
52%
in €m
9M/14
9M/13
yoy
Revenues
181.7
145.8
24.6%
EBITDA
84.1
57.6
46.0%
46.3%
39.5%
6.8pp
in €m
9M/14
9M/13
yoy
Revenues
142.6
134.7
5.8%
Margin
Real estate
EBITDA share
43%
EBITDA
69.2
61.4
12.7%
48.6%
45.6%
3.0pp
9M/14
9M/13
yoy
Revenues
32.8
15.8
>100%
EBITDA
9.4
2.3
>100%
28.6%
14.5%
14.2pp
Margin
General/Other
EBITDA share
in €m
6%
Margin
6
Dec. 10, 2014
Financials
1
GA to become Axel Springer group shareholder
Today
Axel Springer
Paid
Models
Marketing
Models
Post transaction
Axel Springer
GA share ~8.6%1)
Classified
Ad Models
Paid
Models
Marketing
Models
Classified
Ad Models
GA share
30%
1)
7
Based on Axel Springer share price as of December 5, 2014 and valuation of first 15% tranche.
Dec. 10, 2014
Financials
1
Deal structure
Current GA stake in
Axel Springer Digital Classifieds (ASDC)
30%
December 2014
2015
15%
Cash payment
(€446m)
• Valuation of ASDC of €3.95bn
(100%, cash/debt free)
• EV/EBITDA multiple 2015
14x-15x
• Closed December 8, 2014
8
Dec. 10, 2014
Financials
15%
Issuance of Axel Springer shares
(Appraisal report IDW S1)
• Call option for Axel Springer
(AS) against shares in AS SE
• AGM to approve authorized
capital
• Support of family holding
secured
1
Financial impact
1.
Full ownership of classifieds earnings going forward
2.
Transaction eps accretive
3.
Net debt 2014 envisaged at ~€950m / leverage of ~1.9x1)
4.
New legal form enables mid- and long-term growth
1) Based on Bloomberg consensus of €513.5m
9
Dec. 10, 2014
Financials
2
Revenue and EBITDA development reflects
successful digitization
Revenues
Advertising Revenues
EBITDA
26%
48%
78%
86%
30%
96%
74%
70%
52%
22%
14%
2008
9M/14
Other (incl. Services / Holding)
2008
Digital
9M/2014 figures on the basis of continuing operations only.
10
Dec. 10, 2014
Financials
4%
9M/14
2008
9M/14
2
Classified Ad Models with margin increase
Axel Springer segment overview (in €m)
in €m
Paid
Models
9M/14 yoy
Marketing
Models
9M/14 yoy
Classified
Ad Models
9M/14 yoy
Services /
Holding
9M/14 yoy
Revenues
1,129.4
0.9%
564.9 11.8%
357.1 20.5%
126.5
9.2%
170.2
-9.0%
76.8
2.0%
160.2 34.6%
-43.3
-
15.1%
-1.6pp
13.6% -1.3pp
44.9% +4.7pp
206.0
-11.3%
-28.8
-
18.2%
-2.5pp
EBITDA
Margin
EBITDA ex. Restr./LC
Margin
11
Dec. 10, 2014
87.3
11.6%
160.2 34.6%
15.4% 0.0pp
44.9% +4.7pp
Financials
2
Net income of €903m significantly up yoy due to
print disposals
Net income in €m
Continuing operations
902.7
1.21
204.5
144.3
Net income
9M/13
12
9M/14
228.9
Net income
1.78 eps
Dec. 10, 2014
1.78
1.47 adjusted eps
Financials
1.36
1.47
168.5 186.0
Adjusted net income
3
Major divestments in 2014 – active portfolio
management
ƒ Sale of German regional
newspapers, TV program
guides and women’s
magazines to FUNKE
Mediengruppe finalized
04/2014
ƒ Asset valuation of €920m
13
Dec. 10, 2014
ƒ Sale of Ringier Axel
Springer Media AG‘s
activities in Czech
Republic finalized 04/2014
ƒ Investment quadrupled:
Attractive sale of iProperty
for €74m results in profit of
€55m in 07/2014
ƒ Asset valuation of €170m
ƒ 11/2014: Integration of the
Hungarian portfolio into
Ringier Axel Springer
Media AG
Financials
4
Continuous cost management ensures efficiency
Additional measures identified in 2014
ƒ Reduction of staff in
printing plants faster
than expected
ƒ Restructuring of
call center operations
ƒ Concentration of IT
operations teams in
Berlin
ƒ Merger of pre-press
operations (BILD and
WELT)
ƒ Top down saving targets
set for all central
service units
ƒ Implementation of
Shared Services Center
for HR functions
ƒ Cost savings of >€120m envisaged until 2016 (compared to cost base 2011)
14
Dec. 10, 2014
Financials
4
Comfortable financial situation with headroom
for investments and dividend
Financial situation
Future cash inflows >€550m
ƒ
Attractive financing further optimized
ƒ
€241m vendor loan to FUNKE Media Group
ƒ
1)
Net financial debt of ~€950m and
leverage of ~1.9x envisaged by year-end
ƒ
€62.5m of vendor loan to Madsack
remaining
ƒ
Strong free cash flow generation
(2013: €246m)
ƒ
€259m sale of stake in Do÷an TV
ƒ
New legal form enables further mid- and
long-term growth
Sufficient headroom for investments in digitization and high dividend
(payout of €178m for 2013)
1)
Excl. pension liabilities
15
Dec. 10, 2014
Financials
3
Introduction Classified Ad Models
Capital Markets Day – Berlin, December 10, 2014
Dr Andreas Wiele, President Marketing and Classified Ad Models
Axel Springer’s transformation to digital along
core areas of expertise
Haus im Grünen, Moderne Altbau- Wohnung
Mitbewohner
Moderne Altbau- Wohnung
3 Zimmer mit
gesucht! Ich, 43, wohnung, 75 m², gesucht! 2
Finesse, niedrige von privat! Keine wohnung, 75 m², gesucht! 2
Zi.,Kü,Bad. Ab
Zi.,Kü,Bad. Ab
Energiekosten
Beste Lage!
Courtage! 030
w, suche Mitbe- Beste Lage!
sofort!
sofort!
dank Solaranlage, 2591 1234567
Chiffre 0815
wohner, m, der mir Chiffre 0815
ca 83m² Wfl.,
098765
im Haushalt hilft. 098765
3 Zimmer mit
Moderne Altbau3 Zimmer mit
650€ Miete + NK
Finesse, niedrige
wohnung, 75 m², Haus im Grünen, Mitbewohner
Finesse, niedrige Mitbewohner
oder mietähnliche
gesucht! Ich, 43, Beste Lage!
Energiekosten
von privat! Keine gesucht! Ich, 43, Energiekosten
Kaufraten, Bezug
dank Solaranlage,
w, suche
dank Solaranlage, w, suche Mitbe- Chiffre 0815
Courtage! 030
sofort. 030 2591
Mitbewohner, m, ca 83m² Wfl.,
wohner, m, der mir 098765
ca 83m² Wfl.,
2591 1234567
123 456
650€ Miete + NK
der mir im
650€ Miete + NK im Haushalt hilft
Mitbewohner
Mitbewohner
oder mietähnliche
Haushalt hilft
Wohnung
oder mietähnliche
Haus im Grünen, gesucht! Ich, 43, gesucht! Ich, 43,
Kaufraten, Bezug
gesucht! 2
Kaufraten, Bezug
von privat! Keine w, suche Mitbe- w, suche Mitbe- Haus im Grünen,
sofort. 030 2591
Zi.,Kü,Bad. Ab
sofort. 030 2591
wohner, m, der mirwohner, m, der mir von privat! Keine
Courtage! 030
123 456
sofort!
123 456
2591 1234567
im Haushalt hilft. im Haushalt hilft. Courtage! 030
Moderne Altbau- Wohnung jetzt
wohnung, 75 m², gesucht! 2
Beste Lage!
Zi.,Kü,Bad. Ab
Chiffre 0815
sofort! 123456
098765
Moderne AltbauMitbewohner
wohnung, 75 m²,
gesucht! Ich, 43, Beste Lage!
w, suche
Chiffre 0815
Mitbewohner, m, 098765
der mir im
Mitbewohner
Haushalt hilft.
gesucht! Ich, 43,
Haus im Grünen, w, suche
von privat! Keine Mitbewohner, m,
Courtage! 030
der mir im
2591 1234567
Haushalt hilft.
Paid Models
2
Dec. 10, 2014
Mitbewohner
2591 1234567
3 Zimmer mit
Haus im Grünen, Haus im Grünen,
gesucht! Ich, 43,
Finesse, niedrige von privat! Keine von privat! Keine Moderne Altbauw, suche Mitbewohnung, 75 m²,
Energiekosten
Courtage! 030
Courtage! 030
wohner, m, der mir
Beste Lage!
dank Solaranlage, 2591 1234567
2591 1234567
im Haushalt hilft.
Chiffre 0815
ca 83m² Wfl.,
3 Zimmer mit
Mitbewohner
098765
650€ Miete + NK
Moderne AltbauFinesse, niedrige gesucht! Ich, 43,
oder mietähnliche
wohnung, 75 m²,
3 Zimmer mit
Energiekosten
w, suche
Kaufraten, Bezug
Beste Lage!
dank Solaranlage, Mitbewohner, m, Finesse, niedrige
sofort. 030 2591
Chiffre 0815
Energiekosten
ca 83m² Wfl.,
der mir im
123 456.
098765
dank Solaranlage,
650€ Miete + NK Haushalt hilft.
ca 83m² Wfl.,
Moderne Altbau- oder mietähnliche
Haus im Grünen,
Wohnung
650€ Miete + NK von privat! Keine
wohnung, 75 m², Kaufraten, Bezug
gesucht! 2
oder mietähnliche Courtage! 030
Beste Lage!
sofort. 030 2591
Zi.,Kü,Bad. Ab
Kaufraten, Bezug 2591 1234567
Chiffre 0815
123 456.
sofort!
sofort. 030 2591
098765
123 456.
Marketing Models
Introduction Classified Ad Models
Classified Ad Models
Classified Ad Models:
the magic of the market place model
Market places for life’s biggest decisions
with high emotional and financial impact
Attractive business models
Total spending
of Germans
in 2013:
Find the right job:
Your financial basis
Strong positions for leading players
Find your favorite home:
Your emotional basis
€250bn
High margins
Find the car of
your dreams
Sustainable business
€64bn
Enjoy your holidays
International scalability
€85bn
Source: Statistisches Bundesamt, Deutsche Bundesbank
3
Dec. 10, 2014
Introduction Classified Ad Models
Today Axel Springer is present in all these
segments
2006
#2/ #3 real estate portal in Germany
2009
#1 online job board in Germany
2010
#1 car specialist portal in India
2011
#1 real estate specialist in France
2012
#1 regional portal in Germany
G
#1 generalist online job board in UK
#1 real estate specialist in Belgium
2013
9 acquisitions
in the last 2.5
years
#1 job board for hotel & catering in DACH
#1 job boards in 13 countries
2014
#1 classifieds portal in Israel
#1 generalist job board in UK together with Totaljobs
#1 car specialist in France
#1 vacation rental portals in Germany, Belgium,
the Netherlands1)
1) The completion of the transaction is subject to the approval of the relevant antitrust authorities
4
Dec. 10, 2014
Introduction Classified Ad Models
G
Total
investment
€~850m
We have a clear strategy of organic growth and
growth by acquisition
1
We focus on the biggest markets: Jobs, real estate, cars and travel
2
We focus on assets with leading positions
3
We focus on the best consumer experience
4
We strive to be the most effective and efficient marketing-tool for our
professional clients
5
We are paranoid: How can we disrupt our own business model?
5
Dec. 10, 2014
Introduction Classified Ad Models
Classified Ad Models:
an impressive growth story…
Revenue (in €m)
EBITDA (in €m)
16%
CAGR: >55%
29%
40%
40%
41%
EBITDA margins
45%
+20%
403
+35%
357
330
CAGR: >100%
296
164
160
134
119
223
65
108
17
2010
2011
2012
2013
9M/13
9M/14
Note: consolidated figures for Axel Springer Digital Classifieds
6
Dec. 10, 2014
Introduction Classified Ad Models
2010
2011
2012
2013
9M/13
9M/14
…realized through strong organic growth and
growth by acquisition
EBITDA increase: organic / by acquisition
50%
50%
2010
EBITDA organic
2011
2012
20141)
2013
EBITDA through acquisition (year of acquisition / full year effect)
1) First
nine months 2014 extrapolated.
Note: schematic illustration; excl. allocation of holding costs
7
Dec. 10, 2014
Introduction Classified Ad Models
Yad2 and LaCentrale – leaders in highly
attractive digital markets
#1 specialist car classifieds portal
in France
#1 generalist classifieds portal
in Israel
Listings Nov 14, (k)
Visits Oct 141), (m)
Listings Oct 14, (k)
7.3
500
161
0.7
134
0.4
1) Without mobile traffic; 2) Management estimates for visits on listings, total visits include 1.1 visits on content
Source: Mediametrie/Nielsen, similarweb, internal controlling
8
Dec. 10, 2014
7.2
263
x10.4
x3.1
Visits Oct 141), (m)
Introduction Classified Ad Models
x6.5
x1.5
171
92
1.1
0.92)
@Leisure – anchor-investment in the promising
travel segment
Attractive business with two
complementary activities
Attractive market with two main
growth drivers
1. Potential professionalization of the market
Holiday homes Europe (in m)
Not for holiday rent
Focus on
exclusive
intermediation
of holiday
rentals
Aggregation of
holiday rentals
Number of
objects
~20,000
~500,000
Commission
25-35%
~10%
#1 in
#1 in
Business
model
Position
Not actively
marketed
10.0
(42%)
8.1
(34%)
2. Offline to Online Shift
Online booking revenue holiday homes Europe (in €bn)
+18% p.a.
2013
Dec. 10, 2014
Introduction Classified Ad Models
Strategic priorities 2015
10
1
Expand on and further monetize leading positions
2
Continue growth by acquisition in all segments
3
Grow presence in travel segment
Dec. 10, 2014
~9
~6
Note: The completion of the transaction is subject to the approval of the relevant antitrust authorities
9
Marketed
1.9 professionally
(8%)
4.0
(17%)
Marketed
by owner
Introduction Classified Ad Models
2016E
4
StepStone
A Continuous Success Story
Ralf Baumann
CEO StepStone
10th December 2014
www.stepstone.com
Agenda
2
ƒ
Company Update
ƒ
Market Dynamics
ƒ
Update on Recent Acquisitions
ƒ
Company Outlook
www.stepstone.com
StepStone: A Continuous Success Story
A portfolio of leading brands
20
countries
95%+
of revenue from #1 positions
1,500
employees
60,000
StepStone countries & brands
ƒ Germany
ƒ UK
ƒ Belgium
ƒ Ireland
ƒ South Africa
ƒ
Austria
ƒ
France
ƒ
Northern Ireland
Listings p.m.
ƒ
Luxembourg
44,000,000
ƒ
Central America
ƒ
Caribbean
ƒ
Mauritius
customers
500,000
Visits p.m.
Source: Internal measurement
www.stepstone.com
3
StepStone: A Continuous Success Story
Long-term growth above most market peers
eSourcing Companies: Revenue Growth 2007-2013
(in local/reported currency)
125%
Xing (DE)
Revenue CAGR 2007-2013
30%
LinkedIn
Viadeo (FR)
51Job (CN)
25%
20%
StepStone
Jobstreet (MY) Naukri.com (IN)
Brasil Online (BR)
OCC (MX)
Zhaopin Online (CN)
DICE
JobsDB (HK)
Jobindex (DK)
Seek (AU)
15%
10%
5%
0%
-5%
Europe
APAC
Int’l
US+Americas
Monster Worldwide
-10%
0
50
100
400
450
Revenue Index (average revenue 2013 in € = 100)
Note: Xing, Viadeo and LinkedIn incl. recruitment solutions only, Seek (AU) includes “Seek Domestic ” (i.e. eSourcing in
Australia); Xing 2008-2013; JobsDB 2011-2013, Zhaopin, Brasil Online, OCC 2010-2013
Source: Company reports
4
www.stepstone.com
StepStone: A Continuous Success Story
StepStone has always offered a complete eSourcing
product suite
Employer
Branding
Listings
Direct Search
ƒ Low total cost per
hire for recruiter
ƒ Candidate needs to
find and convince the
company
ƒ Highly effective for
large majority of
vacancies
ƒ Targeted employer
branding products to
shape the employer
brand among our
users
ƒ High total cost per
hire for recruiter
ƒ Company needs to
find and convince the
candidate
ƒ Effective on highly
specific positions
ƒ Highly scalable
ƒ 1 to many
communication
ƒ Difficult to scale
ƒ Targeted
communication
ƒ Difficult to scale
ƒ 1 to 1 communication
www.stepstone.com
5
StepStone: A Continuous Success Story
Continued growth above most market peers
eSourcing Companies: Revenue Growth 2013-H1/2014-H1
(in local/reported currency)
Revenue Growth 2013/2014 H1
70%
Jobindex (DK)
60%
Europe
APAC
Int’l
US+Americas
50%
LinkedIn
40%
OCC (MX)
Xing (DE)
30%
Zhaopin Online (CN)
20%
DICE
51Job (CN)
Naukri.com (IN)
10%
StepStone
Seek (AU)
Jobstreet (MY)
JobsDB (HK)
0%
Monster Worldwide
Brasil Online (BR)
-10%
0
50
100
400
450
Revenue Index (average revenue 2013 in € = 100)
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
6
www.stepstone.com
StepStone: A Continuous Success Story
Recap 2014: A continued success story
Double digit revenue growth across almost all geographies
ƒ Continued candidate delivery investments strengthen positions
ƒ Sales reorganisation and staff scale-up accelerate Totaljobs Group growth
ƒ Successful integration of Saongroup and YOURCAREERGROUP without
interrupting local operations
Significantly optimised portfolio
ƒ Acquisition of Jobsite strengthens #1 position in UK
ƒ Desinvestment of Sweden and Denmark
Strengthened tech capabilities
ƒ Acquisition of new capabilities through investment in Swan
ƒ More than 25% of all employees work in product development
www.stepstone.com
7
StepStone: A Continuous Success Story
StepStone is standing out among “similar jobboards”
Applications per Job Ad in Germany
2012
2013
2014
13.6
15.6
19.0
Competitor
7.1
x 1.9
Competitor
6.7
x 2.0
Competitor
3.0
Competitor 1.8
x 4.6
x 7.5
6.0
5.1
3.3
2.2
x 2.6
5.6
x 3.2
x 3.1
5.4
x 3.5
x 4.7
5.3
x 3.6
x 7.1
3.7
x 5.1
Source: TNS Infratest
8
www.stepstone.com
StepStone: A Continuous Success Story
Candidate suppliers may shift but the ratio between
direct search and Listings does not change fundamentally
Germany
U.S.
ƒ Listings have always accounted for ca. 95% of the
German eSourcing
ƒ Direct search has always accounted for ca. 35% of
the US eSourcing
ƒ No shift from Listings to Direct Search observable
ƒ No shift from Listings to Direct search observable
ƒ Leader StepStone grows through Euro-crisis while
competitors lose share
ƒ LinkedIn is increasingly targeting listings, e.g.
announcement to crawl listings
Revenue key players
Revenue key players
CAGR +7%
CAGR +7%
CAGR +9%
CAGR+3%
LinkedIn
StepStone
Monster
Monster
2007
2012
2007
2014-H2e
(LTM)
2012
2014-H2
(LTM)
Note: LinkedIn revenue includes recruitment solutions revenue only, 2007 revenue includes global revenue, Monster.de
extrapolated to 2014-H2 assuming Monster International / West Europe growth rates
Source: Company reports, StepStone management estimates
www.stepstone.com
9
StepStone: A Continuous Success Story
Listings remain the preferred route to hire in our
geographies; external direct search is declining
Jobboard revenue vs. number of direct search assignments
(Index, 2007 = 100)
Germany
500
UK
500
Direct search assignments
Revenue StepStone.de
450
450
400
400
350
350
300
Direct search assignments
Online Recruitment Classifieds Revenue
300
+361%
250
200
150
250
200
ca. 50,000 hires placed
through external head hunters
150
-21%
100
+25%
100
-13%
-9%
50
2007
2008
2009
2010
2011
2012
2013
50
2007
2008
2009
2010
2011
2012
2013
Source: AESC; BDU; WARC
10
www.stepstone.com
StepStone: A Continuous Success Story
Jobboards are more relevant than ever
Details Adecco
Key Financials (€M, 2013)
ƒ Revenue: 19,503
ƒ EBITDA:
“Adecco and Manpower complain
to the competition authorities
after price increases by Jobcloud
(Switzerlands leading jobboard)”
UK
821
% of
revenue
Market
position
10%
1
Market
share
6%
DE
8%
2
9%
CH
2%
1
14%
Source: Adecco annual report 2013
www.stepstone.com
11
StepStone: A Continuous Success Story
Totaljobs Group with improved performance two years
after acquisition
ƒ Continued investment in TJG’s
candidate delivery (website
conversion and online traffic)
Totaljobs Group EBITDA before
and after StepStone ownership
+155%
ƒ Optimisation of sales structure
and organisation
ƒ TJG eCommerce best practices
leveraged on StepStone.de
ƒ Acquisition of Jobsite provides
better coverage for StepStone
going forward
2011
12
Sales Profitability
growth
growth
2014f
www.stepstone.com
StepStone: A Continuous Success Story
Strengthened position in the UK through the acquisition
of Jobsite
ƒ
Add-on acquisition (100%) to complement #1
UK job portal Totaljobs
Jobsite Brands / Websites
í Leading cross-sector jobboard “Jobsite”
í Sector specific jobboards for the health care
industry (emedcareers) and the finance
industry (cityjobs)
ƒ
Founded in 1995, ~170 employees
ƒ
Headquarter in Havant, UK
ƒ
Company valuation of €112m (cash/debt free)
ƒ
Signed in May 2014, closed end of October 2014
www.stepstone.com
13
StepStone: A Continuous Success Story
Outlook 2015: A continuing success story
ƒ Continuation of revenue growth across all geographies
í Leverage strengthened positions in UK and DE
í Further performance improvement in all companies through
leveraging best practices (e.g. Ireland)
í Further invest in candidate delivery and product
enhancements
ƒ Further invest in technological capabilities including
“feasible” early-stage investments
14
www.stepstone.com
eSourcing
MythBuster
www.stepstone.com
15
Myth
#1
16
Passive = Good
Active = Bad
www.stepstone.com
Inactive?
Myth Passive = Good
#1 Active = Bad exploits
Opportunities?
www.stepstone.com
17
Myth #1
Inact
Background/considerations:
ƒ Active candidates are not necessarily low
performers:
í Reasons to change a job include relocation
due to change job of partner, desire to
speed-up career development, pay rise,
culture issues in a company, redundancy /
restructuring programmes, etc.
Passive = Good
Active = Bad ex
Opportu
Inactive?
Passive = Good
Active = Bad exploits
Opportunities?
18
ƒ Passive candidates are not necessarily high
performers
í Not every employee who has been with one
company for 15+ years is a high performer
Real world:
ƒ Most companies will source from several
sources and adapt the sourcing mix according
to the specific position/vacancy
í Fill a vacancy in the fastest way and at the
lowest cost
í Hire the best matching candidate against a
specific profile
www.stepstone.com
Myth Direct Search will be the
#2 preferred route to hire
www.stepstone.com
19
Myth Direct Search will be the
#2 preferred route to hire
The relative importance of
direct search is declining
# employed individuals ’13 vs. ’07
# positions searched by external head hunters ’13 vs. ’07
6%
2%
-21%
Germany
20 Source: AESC, Eurostat
1%
-13%
-28%
United Kingdom
France
www.stepstone.com
Myth #2
Direct Search
will be the
preferred route
to hire
The relative importance of
direct search is declining
Background/considerations:
ƒ Direct search cannot fill all vacancies in a local
economy
í For example, in Germany only 50,000
positions are filled through external head
hunters p.a. – a tiny fraction of millions of
vacancies that need to be filled every year
Real world:
ƒ Direct search is the most costly way to hire
and used for very hard to fill positions or
hidden search only
# employed individuals ’13 vs. ’07
# positions searched by external head hunters ’13 vs. ’07
6%
2%
-21%
Germany
1%
-13%
-28%
United Kingdom
France
Source: AESC, Eurostat
21
www.stepstone.com
eSourcing markets are
Myth highly cyclical and hence
#3 investments in eSourcing
bear high risks
22
www.stepstone.com
Myth eSourcing markets are highly
cyclical and investments in
#3 eSourcing bear high risks
StepStone sales have grown in
every year except for 2009
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
www.stepstone.com
23
Myth #3
eSourcing markets are
highly cyclical and
hence investments in
eSourcing bear high
risks
StepStone sales have grown in
every year except for 2009
2003
24
2004
2005
2006
2007
2008
2009
2010
2011
2012
Background/considerations:
ƒ Almost all industries / markets are cyclical
ƒ
Cyclicality has accelerated StepStone’s
growth in the past by driving
í Consolidation, i.e. weaker players exit
í Structural shift from print to online
í Consolidation and structural shifts in
other industries
Real world:
ƒ Competitive eSourcing companies grow
and so is StepStone (always growing,
except 2009)
2013
www.stepstone.com
5
Reinforced fundamentals
for lasting leadership
Roland Tripard, CEO
Capital Markets Day
Berlin, December 10th, 2014
If I were an analyst…
2
•
Are market conditions effectively improving?
•
Does stronger competition slow down SeLoger’s growth?
•
Is the « specialist » the right position for long-term leadership?
Market rebound froze by the end of Q1’14
3
August 2014: 732 k
Source : Commissariat Général au Développement Durable + INSEE
Turning down transactions volumes for 2014
4
Resale market
New developments
(in units sold)
(in units sold)
New homes
Total residential market
(in units sold)
(in units sold)
Source : Commissariat Général au Développement Durable
If I were an analyst…
5
•
Are market conditions effectively improving?
YES
9
NOT YET
NO
•
Does stronger competition slow down SeLoger’s growth?
•
Is the « specialist » the right position for long-term leadership?
Traffic, leads & users database keep growing fast
66
All below graphs and figures are for seloger.com only
(excluding all verticals: selogerneuf, bellesdemeures, agorabiz, webimm…)
Email
Opening
Source : Omniture
Unit: ‘000
YTD2014
+27%
yoy
Paving the way for ARPU growth
7
Note: “PA“ ARPU figures include Seloger.com only – “MEDIA“ includes SeLoger and verticals.
If I were an analyst…
8
•
Are market conditions effectively improving?
YES
•
NOT YET
NO
Does stronger competition slow down SeLoger’s growth?
9
•
9
NO
NOT YET
YES
Is the « specialist » the right position for long-term leadership?
A specialist for better services to purchasers…
9
New information portal
Improved search
Efficient listings
Upgraded cross-device integration
…and better services to sellers
10
• SeLoger & key partners federating the industry around a
comprehensive and unmatchable barometer for market prices
A specialist for better services to the agents…
11
¾ Contacts sent to agents are now enhanced with
many more « big data » value add services
¾ And agents can get automatically for each listing :
price competitiveness
and performance
…and better services to their managers
12
¾ Manager can overview its activity
and compare it to local market
¾ And it is now possible to send
listings on-demand to potential
buyers by e-mail
If I were an analyst…
13
•
Are market conditions effectively improving?
YES
•
NOT YET
NO
Does stronger competition slow down SeLoger’s growth?
9
•
9
NO
NOT YET
YES
Is the « specialist » the right position for long-term leadership?
9
YES
NOT YET
NO
6
Introduction Marketing Models
Capital Markets Day – Berlin, December 10, 2014
Dr Andreas Wiele, President Marketing and Classified Ad Models
Axel Springer’s transformation to digital along
core areas of expertise
Haus im Grünen, Moderne Altbau- Wohnung
Mitbewohner
Moderne Altbau- Wohnung
3 Zimmer mit
gesucht! Ich, 43, wohnung, 75 m², gesucht! 2
Finesse, niedrige von privat! Keine wohnung, 75 m², gesucht! 2
Zi.,Kü,Bad. Ab
Zi.,Kü,Bad. Ab
Energiekosten
Beste Lage!
Courtage! 030
w, suche Mitbe- Beste Lage!
sofort!
sofort!
dank Solaranlage, 2591 1234567
Chiffre 0815
wohner, m, der mir Chiffre 0815
ca 83m² Wfl.,
098765
im Haushalt hilft. 098765
3 Zimmer mit
Moderne Altbau3 Zimmer mit
650€ Miete + NK
Finesse, niedrige
wohnung, 75 m², Haus im Grünen, Mitbewohner
Finesse, niedrige Mitbewohner
oder mietähnliche
gesucht! Ich, 43, Beste Lage!
Energiekosten
von privat! Keine gesucht! Ich, 43, Energiekosten
Kaufraten, Bezug
dank Solaranlage,
w, suche
dank Solaranlage, w, suche Mitbe- Chiffre 0815
Courtage! 030
sofort. 030 2591
Mitbewohner, m, ca 83m² Wfl.,
wohner, m, der mir 098765
ca 83m² Wfl.,
2591 1234567
123 456
650€ Miete + NK
der mir im
650€ Miete + NK im Haushalt hilft
Mitbewohner
Mitbewohner
oder mietähnliche
Haushalt hilft
Wohnung
oder mietähnliche
Haus im Grünen, gesucht! Ich, 43, gesucht! Ich, 43,
Kaufraten, Bezug
gesucht! 2
Kaufraten, Bezug
von privat! Keine w, suche Mitbe- w, suche Mitbe- Haus im Grünen,
sofort. 030 2591
Zi.,Kü,Bad. Ab
sofort. 030 2591
wohner, m, der mirwohner, m, der mir von privat! Keine
Courtage! 030
123 456
sofort!
123 456
2591 1234567
im Haushalt hilft. im Haushalt hilft. Courtage! 030
Moderne Altbau- Wohnung jetzt
wohnung, 75 m², gesucht! 2
Beste Lage!
Zi.,Kü,Bad. Ab
Chiffre 0815
sofort! 123456
098765
Moderne AltbauMitbewohner
wohnung, 75 m²,
gesucht! Ich, 43, Beste Lage!
w, suche
Chiffre 0815
Mitbewohner, m, 098765
der mir im
Mitbewohner
Haushalt hilft.
gesucht! Ich, 43,
Haus im Grünen, w, suche
von privat! Keine Mitbewohner, m,
Courtage! 030
der mir im
2591 1234567
Haushalt hilft.
Paid Models
2
Dec. 10, 2014
Mitbewohner
2591 1234567
3 Zimmer mit
Haus im Grünen, Haus im Grünen,
gesucht! Ich, 43,
Finesse, niedrige von privat! Keine von privat! Keine Moderne Altbauw, suche Mitbewohnung, 75 m²,
Energiekosten
Courtage! 030
Courtage! 030
wohner, m, der mir
Beste Lage!
dank Solaranlage, 2591 1234567
2591 1234567
im Haushalt hilft.
Chiffre 0815
ca 83m² Wfl.,
3 Zimmer mit
Mitbewohner
098765
650€ Miete + NK
Moderne AltbauFinesse, niedrige gesucht! Ich, 43,
oder mietähnliche
wohnung, 75 m²,
3 Zimmer mit
Energiekosten
w, suche
Kaufraten, Bezug
Beste Lage!
dank Solaranlage, Mitbewohner, m, Finesse, niedrige
sofort. 030 2591
Chiffre 0815
Energiekosten
ca 83m² Wfl.,
der mir im
123 456.
098765
dank Solaranlage,
650€ Miete + NK Haushalt hilft.
ca 83m² Wfl.,
Moderne Altbau- oder mietähnliche
Haus im Grünen,
Wohnung
650€ Miete + NK von privat! Keine
wohnung, 75 m², Kaufraten, Bezug
gesucht! 2
oder mietähnliche Courtage! 030
Beste Lage!
sofort. 030 2591
Zi.,Kü,Bad. Ab
Kaufraten, Bezug 2591 1234567
Chiffre 0815
123 456.
sofort!
sofort. 030 2591
098765
123 456.
Marketing Models
Introduction Marketing Models
Classified Ad Models
Marketing Models @ Axel Springer
Revenue (in €m)
EBITDA (in €m)
16%
16%
15%
14%
15%
14%
EBITDA margins
CAGR: 15%
717
663
+12%
576
CAGR: 12%
565
505
471
90
98
103
+2%
73
2010
3
2011
2012
Dec. 10, 2014
2013
9M/13
9M/14
2010
2011
2012
2013
75
77
9M/13
9M/14
Introduction Marketing Models
The addressable market for a print publisher like
Axel Springer was limited
Addressable advertising market as print publisher
Print
TV
Radio/
Sponsoring/
Others
Brand awareness
Advertising objective
4
Dec. 10, 2014
Introduction Marketing Models
Below the line
ƒ Promotion
ƒ Mailings
ƒ Telemarketing
Action
With the digitization the addressable market
increases
Addressable advertising market as digital publisher
Gross ad spending 2013, Germany
~ 9 bn
EUR
~ 12 bn
EUR
~ 8 bn
EUR
Print
TV
Radio/
Sponsoring/
Others
Brand awareness
~ 8 bn
EUR
~ 4 bn
EUR
Below the line
Online
ƒ Promotion
ƒ Mailings
ƒ Telemarketing
Action
(excl. search;
incl. affiliate)
Brand awareness
& Action
Advertising objective
Source: Nielsen Media Research, Dialog Marketing Monitor, Zentralverband der deutschen Werbewirtschaft, PWC Media Outlook
Source: Nielsen Media Research
5
Dec. 10, 2014
Introduction Marketing Models
Today the whole value-chain is covered by our
assets
Advertising objective
Awareness
Cost per view
6
Dec. 10, 2014
Interest
Cost per click
Introduction Marketing Models
Desire
Action
Cost per order
Our assets are at different stages of organic
growth…
Product lifecycle stages
Strong growth
7
Dec. 10, 2014
Growth
Maturity
Introduction Marketing Models
…that we meet with individual strategic
measures for further growth
Product lifecycle stages
8
Strong growth
Growth
Maturity
ƒ Work on leading
position
ƒ Organic
internationalization
ƒ Optimize the
business
ƒ Add-on acquisitions
ƒ Product investment
ƒ Improve technical
scalability
ƒ Invest in new growth
Dec. 10, 2014
Introduction Marketing Models
7
finanzen.net
From startup to Germany’s
largest finance portal
Jens Ohr & Peter Schille
Founders and Managing Directors
(Local newspaper article 1999)
How we started in 1999
2
The first year
2000: Dotcom Bubble Burst
2000: Axel Springer takes
stake in Smarthouse
1999: Founding of
Smarthouse GmbH
Early 1999
Mid 2000
Late 2000
3
The last 15 years
2013: Launch finanz.ru
2012: Launch finanzen.ch
2010: finanzen.net market
leader Germany
Visits finanzen.net in m
2000: Dotcom Bubble
Burst
2000: Axel Springer takes
stake in Smarthouse
2013: Launch
finanzen.at
2008: More than 250
websites for B2B customers
More than 100 employees
1999: Founding of
Smarthouse GmbH
2014: Clear leading
position in DACH-region
and 40 employees
2001: ABN Amro becomes
first B2B customer
1999
2014
2000
2001
2002
2003
2004
2010: Spin-off finanzen.net
with 12 employees
2005
2006
2007
2008
2009
2010
2011
2012
2013
4
What is finanzen.net
Largest finance portal in DE, CH, AT
2.5m monthly unique users
Information for 1.3m stocks, funds, ETFs,
bonds, and other products
100 stock exchanges from 50 countries
5
Why our business model works
Our users…
Our advertising customers
…are above-average wealthy
…want to invest money
…used to be directed by advisors
and are now mostly self-directed
…are a high concentration of a desirable
user base which is attractive for
high-class advertising customers
6
Continuous growth
Traffic growth*
2008
2009
2010
2011
Revenue and EBITDA growth**
2012
2013
2014
* Monthly IVW Visits on a quarterly base
** since 2010 (spin-off from Smarthouse)
7
International expansion
Online
?
Target
?
?
?
8
Being a startup within Axel Springer - looking back 15 years
9
8
MARK WALTERS - CEO
AFFILIATE MARKET EVOLUTION
The affiliate marketing sector is still highly competitive
Greater client service, guidance and strategic insights
More clients looking to expand their trade cross-territory
Maturing client base requires more sophisticated tools
Emerging markets want to future proof their investment
With an uncompromising request for what is market leading
Proven UK model merged with zanox market reach
One global platform, operation and outlook with local specialist resource
2
AFFILIATE PROGRAMME EVOLUTION
3
INCENTIVISED TRAFFIC
PERSONALISATION PAYMENT
LONG-TAIL MODELS
CONTENT
CROSSATTRIBUTION
CHANNEL GEO-TARGETING
OMNI-CHANNEL
MOBILE MULTIINTERNATIONLISATION
CHANNEL
4
THE NEW DATA BATTLEGROUNDS
GLOBAL MOBILE
INTELLIGENT
COMMISSIONS
DATA
PERSONALISATION
CUSTOMER
MOBILE
QUALITY
BUSINESS
MULTI
INFLUENCE
CHANNEL
INTELLIGENCE
INCREMENTAL
5
WHO OWNS THE DATA?
NETWORK
PUBLISHER
ADVERTISER
6
THIRD PARTY
INTERFACES
THE
RANGE
OF
DATA
THAT
CAN BE
USED
7
THE FUTURE CUSTOMER
AGE: 28
LOVES INTL
CITY BREAKS
EMPLOYED
SHOPS FOR
GOOD DEALS
IN
RELATIONSHIP
LIVES NORTH
LONDON
TRAVELS ON
BUSINESS
LIKES
BOUTIQUE
HOTELS
BUSINESS
TRIPS ARE TO
FRANCE
8
9
AFFILIATES DRIVE GLOBAL EXPANSION
UK ONLINE
SALES FROM
INTL MARKETS
TO REACH
2012 £4bn
2014 £8bn
BY
2020 £28bn
TO MAKE UP
40% OF
TOTAL UK
ONLINE SALES
10
OF PUBLISHER SALES IN
SEPTEMBER ONLY HAD
ONE PUBLISHER
INTERACTION
HOW DO WE REWARD
THE REMAINING
17%?
11
1
3
DAISY CHAIN
2
POST-IMPRESSION TESTS
ASSIST REPORTING PHASE 1
4
ASSIST REPORTING PHASE 2
12
A VIEW OF ASSISTS
CONVERTED
SOLO SALES
211
CONVERTED
NON SOLO
ASSISTS - FIRST
NOT LAST CLICK
217
ASSISTS - BUT
ASSISTS OTHER TOTAL
NOT LAST CLICK CHANNELS
INFLUENCE
84
62
5834 6346
MOBILE MARCHES ON
The growth of tablet and smartphone sales
35%
30%
25%
20%
15%
10%
5%
0%
JAN
FEB
MAR
APR
MAY
2011
JUN
2012
JUL
2013
AUG
SEP
OCT
NOV
DEC
2014
14
15
Publisher A
28/09/2014
+ 4 Products
02/10/2014
06/10/2014
Publisher B
Publisher B
+ €122
16
9
Creating
a global category in ROPO
Christian Gaiser, Founder & CEO
Axel Springer Capital Markets Day
Successful international rollout based on
Proven International Playbook
International playbook forms
the foundation for success in
every country
Ŷ
Ŷ
Ŷ
Ŷ
December 2014
Company founded in late 2008 in Berlin, Germany
In 9 countries with strong local brands
7x strong local brands, 450mln visits, 310 employees
Run by the founders, backed by Axel-Springer
Page 2
Our ROPO model: Drive to store
Discover
the best deals
Set Alerts
for Favorites
Browse through a
rich experience
Find your way
to the store
Simple & Scalable Business Model:
CPE = Cost Per Engagement
Page 3
December 2014
Creating a leading position in the US
As newspaper circulation
declines and mobile
penetration increases,
additional mobile distribution
points are a necessity.
Launched during Holiday 2013 with 20x retail partners
Strong team with background in retail & media sales
Over 130 Active Retail Partners and Growing
Near 3 Million Year to Date Users
Over 20 Thousand Reviewers Ranked App 4+ out of 5
#1 in Leading App Stores and Earned “Featured” Positions
December 2014
Page 4
US consumers show strong appetite for our product
Page 5
December 2014
Closing
the loop: Our model works
National Mass Merchant
Preliminary Placed Results Connects Mobile to Store
ƒ Over 24% of people exposed to the client’s circular in
the Retale app visited a physical store in the
subsequent 14 days
ƒ Represented a lift in store visits of almost 65% when
compared to those who did not view client’s circular
on Retale
Attribution
Placed Attribution
Quantify the impact of mobile ads on in-store
visits. Expand measurement beyond the
screen to know the true value of your mobile
advertising.
December 2014
Page 6
10
Fany Pechiodat,
Founder and CEO,
My Little Paris
10/12/2014, Berlin
SUCCESSFULLY MONETIZING A COMMITTED AUDIENCE
1
A NEW GENERATION OF NEWSLETTERS
2
A BREAK WITH USUAL NEWSLETTER’S FEATURES
short format
February 2008
1st newsletter sent to 50 friends
Key success factors
- Short format
- Hand-made illustrations
- Very personal tone
- Viralizing ideas
biting tone
hand-made
illustrations
3
A COMMUNITY OF 1 500 000 WOMEN
acquired through word of mouth exclusively
Jan 2014
1 500 000
subscribers
Feb 2008
First email sent to 50
friends
4
MY LITTLE PARIS IS A LAUNCH PAD
FOR NEW BUSINESS
5
WE NEED MORE THAN CAMPAIGNS, WE NEED STORIES
6
A REINVENTION OF ADVERTISING
7
A REINVENTION OF ADVERTISING
8
A REINVENTION OF ADVERTISING
9
FROM EMAIL BOX
to physical Box
10
FROM EMAIL BOX
to physical Box
80 000
subscribers
A lifestyle & beauty box, full of
surprises, goodies and
inspiring ideas
Price : 16.90 EUR/month
Unlimited subscription model
One box each month
11
FROM EMAIL BOX
to physical Box
12
MY LITTLE APP
500 000
Downloads
Concept : a daily dose of
fun on your mobile
500 000 downloads
acquired by organic growth
after 1 year
13
THANK YOU !
11
BILD and WELT: Two successful Paid
Content Strategies
Capital Markets Day – Berlin, December 10, 2014
Donata Hopfen, Publishing Director BILD Group
Paid content is key to Axel Springer’s strategy
Start of a joint project approach for paid content
for Axel Springer brands in 2011/2012
Development of one central paid content engine
Overall more than 300 thousand subscribers today
2
Dec. 10, 2014
BILD and WELT: Two successful Paid Content Strategies
3
Dec. 10, 2014
BILD: Paid Content Strategy
BILD has a clearly defined brand vision
BILD is Germany’s key medium.
BILD gives its readers both what moves them and
what provokes them. Always and everywhere.
4
Dec. 10, 2014
BILD: Paid Content Strategy
Founded in 1952 BILD today is larger and more
versatile than ever – all under one brand
1952
1996
2014
2007
5
Dec. 10, 2014
BILD: Paid Content Strategy
BILD is leading in news across all channels in
Germany
Newspaper
#1
Digital
(Online, Mobile, Apps)
#1
Sunday newspaper
#1
Total reach: 38.21 million*
*this matches a reach of 54.2%: the BILD brand reaches more than half of the
German speaking population (14 years and older) at least once a month
Source: MA Presse 2014-II, AGOF digitalfacts 2014-Prototyp; total reach according to Crossmedia-brand reach, best for planning 2014 - I, German-speaking population 14 years+
6
Dec. 10, 2014
BILD: Paid Content Strategy
Strategic investment in video segment leads to
growth in video views and improved ad sales
Jan-Oct 2014:
227 million video views
Bundesliga bei BILD
YouTube Channel
Source: ComScore BILD.de (only Online) Jan – Oct 2014
7
Dec. 10, 2014
BILD: Paid Content Strategy
Social media with growing importance for
BILD.de Traffic
Facebook referrals to BILD.de
Traffic sources of BILD.de
10%
20
9%
8%
9%
15
7%
6%
2%
17%
5%
10
4%
72%
3%
5
2%
1%
0%
0
Oct.
12
Jan.
13
Apr.
13
Juli
13
Oct.
14
Jan.
14
Apr.
14
Juli
14
Oct.
14
BILD.de Facebook Visits in million
SEO Traffic
BILD.de direct traffic
% of traffic to BILD.de through Facebook referrals
other referrals
Traffic from Facebook referrals
Source: Internal Tracking; Traffic sources Nov 2014
8
Dec. 10, 2014
BILD: Paid Content Strategy
Introduction of BILDplus and Paid Content is the
change driver for the organization
Driver of Change
New structure
Multi-platform workflow
(content-driven)
Editor in Chief
24/7
News
In charge of
Online
9
Dec. 10, 2014
In charge of
Print
BILD: Paid Content Strategy
BILDplus is constantly growing
Oct 2014
No. of subscribers
June 2013
Launch
BILDplus
Source: until May 2014 BILD Controlling, since Mai 2014 IVW Paid Content
10
Dec. 10, 2014
BILD: Paid Content Strategy
249 201
Unique user growth since introduction of BILDplus
Unique User in million
Introduction of BILDplus
17.9
16.2
15.1
13.7
12.3
12.3
Feb
Mar
Apr
14.2
14.0
13.7
May
Jun
Jul
14.2
14.2
14.0
13.7
Aug Sept
Oct
Nov
Dec. 10, 2014
Jan
2013
Source: AGOF (until 06/2013 years 14+; since 07/2013 years 10+)
11
Dec
15.3
15.4
15.5
Feb
Mar
Apr
17.0
17.1
May
Jun
Jul
16.5
16.7
Aug
Sep
2014
BILD: Paid Content Strategy
One paying subscriber generates ten times more
revenues than one advertising-based user
ARPU Subscription Sales
excl. ad sales
ARPU Ad Sales
10 x
Sources: AGOF, BILDplus IVW, calculation: ARPU BILDplus is recent BILDplus CLV in comparison ARPU ad sales
12
Dec. 10, 2014
BILD: Paid Content Strategy
BILD.de free
Subscriptions are generated in all departments
7%
6%
15%
29%
5%
9%
17%
13%
Money
Politics
Regional
Entertainment
News
Service
Sport
Automotive, Digital, Lifestyle, Travel, Games
Source: internal tracking Web / Wap
13
Dec. 10, 2014
BILD: Paid Content Strategy
New distribution channels are constantly created to
support BILDplus
14
Dec. 10, 2014
BILD: Paid Content Strategy
Real time monitoring and conversion optimization
facilitates immediate and constant improvement
Live Analytics
15
Dec. 10, 2014
Live Heatmap
Live Conversions
BILD: Paid Content Strategy
Constant improvement and innovation makes
BILDplus successful
First Offerpage
16
Dec. 10, 2014
BILD: Paid Content Strategy
Today’s Offerpage
In February 2014 Axel Springer hosted the
International Paid Content Summit
Participants:
17
Dec. 10, 2014
BILD: Paid Content Strategy
Goals for 2015
1
Complete integration of BILD Group
Further establish paid content as 2nd
revenue stream
2
3
Continued focus on video
4
Mobile and cross device marketing
5
18
Dec. 10, 2014
Social Media
BILD: Paid Content Strategy
WeltN24: Paid Content Strategy
Capital Markets Day – Berlin, December 10, 2014
Dr Stephanie Caspar, Managing Director WeltN24 Group
DIE WELT launched its Paid Content initiative in
December 2012…
Launch of mobile
portal of WELT
ONLINE
1995
Launch of
iPhone
application
2007
First major German
newspaper on the
internet
2
Dec. 10, 2014
2009
First issue of
WELT on iPad
2010
Introduction of paid
content model on
regional portals
2011
Launch of paid
content model
2012
Launch Android app –
first national daily
newspaper on all
relevant platforms
WeltN24: Paid Content Strategy
Acquisition of
N24 Group
2013
2014
Launch
KOMPAKT
app
…based on a metered model, allowing users to
read the first articles for free
• Following the models of ‘The
New York Times’ and ‘The
Telegraph’
• Each user can read 20 articles
for free each month
• Introduction of ‘soft’ paywall
to increase user friendliness
• Users buy subscription to
continue reading
3
60,000
Dec. 10, 2014
WeltN24: Paid Content Strategy
Our number of subscribers is constantly
growing…
iPad mini campaigns
2 months trial
German Soccer
League option
World Cup prize draw
0€ trial
0€ trial & + prize draw
Vacation campaign
Christmas bundle
99c trial & + prize draw
iPad mini promotion
Other highlights of Q3/14
Summer promotion
3 for 1 trial
Miles & More offer
99c trial
Audio feature
NH voucher promotion
Sep 12
Oct 14
Source: Webtrekk Note: Number of subscribers , excluding print subscribers parallely using their digital access
4
Dec. 10, 2014
WeltN24: Paid Content Strategy
…as well as our reach with more than 30% CAGR
Oct 2014
Visits (in m)
54.5 M
60
50
40
Jan 2010
24.5 M
30
20
Oct 2006
10
6.2 M
May
06
Jan
07
Jan
08
Jan
09
Jan
10
Jan
11
Jan
12
Start Paid
Content
initiative
Jan
14
Oct
14
Source: IVW Visits total
5
Dec. 10, 2014
WeltN24: Paid Content Strategy
Significance of social media traffic is increasing
Social media referrals grow in importance
2.1
Direct visitors are our largest traffic source
Other
1.0
1.1
1.0
1.0
6%
5%
4%
0.8
0.8
0.8
59%
0.8
0.7
0.7
0.8
0.7
0.9
0.9
0.7
0.9
0.8
27%
1.1
1.3
1.3
1.4
1.6
8%
7%
3%
2%
6%
1%
0%
Jan
13
Jan
14
% of traffic through social media referrals
Source: Webtrekk Visits November 2014
6
Dec. 10, 2014
WeltN24: Paid Content Strategy
Nov
14
Social media visits
Our growth has been driven by quality digital
journalism across all media channels
Leverage N24 video
capabilities
Additional offerings on mobile
devices, video and in social space
Broaden digital portfolio
Improved products along 4 dimensions:
• Content
• Look & feel
• Functionality
• Technology
Program for Excellence
Launch of pay model
7
Dec. 10, 2014
With N24, we tripled
our video reach
Metered model allows for flexible management of reach
WeltN24: Paid Content Strategy
Both WELT and N24 video platforms with
excellent performances
Video views welt.de
Video views n24.de
Monthly views (in m)
Monthly views (in m)
7
7
Nov 2014
6.0 m
Nov 2014
4.5 m
5
5
Jan 2013
2.0 m
Jan 2013
1.7 m
Jan
13
acquisition
Jan
14
Nov
14
Source: Webtrekk Monthly Video Views
8
Dec. 10, 2014
WeltN24: Paid Content Strategy
Jan
13
Jan
14
Nov
14
WELT Paid Content initiative has been
successfully established
>56,000 subscribers (IVW Paid Content October 2014)
3 of 4 users stay after their trial month
Highest cross-media reach in quality newspapers with >6 million users1
Growing advertising revenues compared to previous year
1. Cross-media reach includes DIE WELT, WELT am SONNTAG, WELT Online and mobile enabled websites, excluding apps
Sources: IVW Paid Content; b4p 2014-I
9
Dec. 10, 2014
WeltN24: Paid Content Strategy
We want to further grow our subscriber base –
by offering clear and simple packages
DIGITAL Basic
0.00 €
1st month
4.49 €
per month
DIGITAL Complete
0.00 €
1st month
12.99 €
per month
DIGITAL Plus
0.00 €
1st month
14.99 €
per month
10
Dec. 10, 2014
WeltN24: Paid Content Strategy
Our distribution is backed by strong online
marketing measures and B2B cooperations…
11
Dec. 10, 2014
WeltN24: Paid Content Strategy
…and supported by innovative customer
relationship management
Exclusive events, journalistic content and
services as well as special offers for all WELT
subscribers
Highlights include
ƒ WELT Tour with visit of newsroom,
Journalistenclub and printing facilities
ƒ Sunday brunch with WELT Editor-in-chief,
publisher and well-known journalists
ƒ Loyalty offer with digital subscription and iPad
minis for long-term print subscribers
ƒ Targeted regional events, e.g. tickets for Leipzig
Book Fair, Literary Festival Meißen
And there is more to come: movie previews,
concert live streams, wine tastings…
12
Dec. 10, 2014
WeltN24: Paid Content Strategy
And there will be much more when we come
together in our new company in 2015
One multimedia company
for quality journalism
One editorial team
Joint product and software
development
Innovative journalism
across all channels,
leveraging our multimedia
presence
13
Dec. 10, 2014
WeltN24: Paid Content Strategy
Major initiatives going forward to ensure our
editorial and economic success
ƒ Digital will be core of the company – mobile and video with
strong (advertising) growth for both WELT and N24. Synergies
in editorial, product and software development
ƒ Further optimization of Paid Content Model:
Sustained growth and less costs
ƒ Continue to strengthen our #1 position in
German Newspaper market among key
decision makers and regarding cross-media
reach
ƒ Defend our #1 position in
German news TV
14
Dec. 10, 2014
WeltN24: Paid Content Strategy
12
PLUGGING INTO THE STARTUP SCENE
10th Dec 2014
Jörg Rheinboldt
"So close and yet so far away!"
A START-UP GUY AT AXEL SPRINGER
CV Joerg Rheinboldt
4
WE HAVE A STRONG PARTNER ON OUR SIDE
Set-Up Axel Springer Plug And Play
5
WHO WE LOOK FOR
‘Media-Related!’
6
OUR DEAL
Light And Fair
7
THE JOURNEY THUS FAR
Key Vitals Since Batch 1 In 2013
8
OUR PORTFOLIO
The 46 Startups Since Launch
9
OUR PORTFOLIO
The 46 Startups Since Launch
10
Holland
Poland
WE AIM INTERNATIONAL
44% of our founders originate
from outside Germany
11
REVIEW 2014
Things To Shout About...
We
broadened
our horizon.
Competition
increased.
Pitch and Demo Days in Israel, Poland and Belgium
Applications from all over Europe
Initially mainly German founders, now they are in the minority
We are glad to contribute to Berlin becoming a startup hub
hub:raum, Berlin Hardware Accelerator,
Startupbootcamp, Microsoft Ventures Accelerator, You is Now (Scout 24)
We launched a successful pilot partnership with ERGO insurances
We built
bridges.
We get: bridges & synergies between Axel Springer and the partners,
cost sharing
We provide: access to our microcosm (desk in the accelerator),
possibility to travel to the Silicon Valley
12
GOALS 2015
... What We Hope To Shout About
More international founders: pitches in a number of startup hubs
Get
In Touch!
More female founders
Continue at ca. 36 startups per year
Keep
In Touch!
Increase financial involvement: fund for investment beyond 5%
Create a community: offices for graduating startups
Aim: 4-5 corporate partners
Partner Up!
Target Industries: media, banking, travel, retail, automotive, telco
Improve!
We constantly seek to improve every aspect of our work!
13
13
Summary and Outlook
Capital Markets Day – Berlin, December 10, 2014
Dr Mathias Döpfner, Chairman & CEO
You can access the webcast of Mathias Döpfner’s speech on our website
www.axelspringer.com/cmd2014
2
Dec. 10, 2014
Summary and Outlook
Thank You
for attending our
Capital Markets Day
2014
Investor Relations contacts
Claudia Thomé
Co-Head of Investor Relations
Daniel Fard-Yazdani
Co-Head of Investor Relations
Phone: +49 30 2591 77421
Mobile: +49 160 90445035
Phone: +49 30 2591 77425
Mobile: +49 151 52844459
[email protected]
[email protected]
Axel Springer SE: Axel-Springer-Str. 65, 10888 Berlin, Germany, Fax: +49 30 2591 77422