company presentation · 2 company presentation this document, which has been issued by axel...
TRANSCRIPT
Company presentationJanuary 2019
Disclaimer
Company presentation2
This document, which has been issued by Axel Springer SE (the "Company"), comprises the written materials/slides for a presentation of the
management.
Whilst all reasonable care has been taken to ensure that the information and facts stated herein are accurate and that the opinions and
expectations contained herein are fair and reasonable no representation or warranty, express or implied, is given by or on behalf of the Company,
any of its directors, or any other person as to the accuracy or completeness of the information or opinions contained in this document and no
liability is accepted for any such information or opinions.
This document contains forward looking statements which involves risks and uncertainties. These forward looking statements speak only as of the
date of this document and are based on numerous assumptions which may or may not prove to be correct. The actual performance and results of
the business of the Company could differ materially from the performance and results discussed in this document.
The Company undertakes no obligation to publicly update or revise any forward looking statements or other information contained herein whether
as a result of new information, future events or otherwise.
This document does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe
for, any securities in any jurisdiction, nor shall they or any part of them nor the fact of their distribution form the basis of, or be relied on in
connection with, any contract or investment decision in relation thereto.
38%
47%
13%
2%
Axel Springer at a glance
Company presentation3
61%28%
11%
▪ 81%1 of adj. EBITDA from digital
activities
▪ Classifieds with further double-
digit top-line growth and high
margins
▪ Stable adj. EBITDA for News
Media expected 2017-2019
▪ Focus on classifieds and content
▪ Strong underlying FCF and
positive effect from real estate
transactions
▪ High dividend yield and payout
ratio (2017: 77%)
Investment highlights
Financials
Revenues by segment1 Adj. EBITDA by segment1,2
1) Based on 9M/18 figures. 2) Negative EBITDA S/H allocated proportionally to operative segments. 3) Adj. for effects from IFRS 16, consolidation and FX effects.4) Previously: Low to mid single-digit % growth. 5) Previously: Mid to high single-digit % growth.
Classifieds Media
Services / Holding
Marketing Media
News Media
2017 Outlook 2018 (reported) Outlook 2018 (organic3)
Revenues in €m 3,562.7 Low to mid single-digit % growth Low to mid single-digit % growth
EBITDA (adj.) in €m 645.8 Low double-digit % growth Mid to high single-digit % growth
EBITDA margin (adj.) 18.1%
EPS (adj.) in € 2.60 Mid single-digit % growth4 High single-digit % growth5
DPS (FY 2017) in € 2.00
81% of adj. EBITDA from digital activities – digital
revenues with organic growth of 9.1% in 9M/18
Company presentation4
digital
Revenues adj. EBITDA
digital
69% 81%
Looking back – strong execution on key messages
Company presentation5
More disclosure on classifieds
▪ Strong organic revenue growth of 10.8% in 9M/18,
driven especially by jobs
▪ Positive response to new single-asset disclosure and
dedicated CMDs in London and New York in June´17
▪ Increased disclosure and better visibility as basis for
re-evaluation of assets (especially of jobs classifieds)
Stable adj. EBITDA in News Media
▪ Mid-term guidance given: adj. EBITDA to be stable in
a range between €225m and €245m for 2017-20191
▪ News Media adj. EBITDA 2017: €218.8m
▪ Reorganization of German publishing units
Strict M&A discipline in content
▪ Guidance given: No loss-making content acquisitions
before existing digital content businesses have
proven profitability – focus on organic development
going forward
▪ Insider Inc.: organic revenue CAGR 2015-17 of 38%
▪ Break-even for Insider Inc. on track for H2/18
Leading digital publisher
▪ Focus on classifieds and content
▪ Active portfolio management:
- Acquisition of Logic-Immo in France
- Acquisition of minority stakes in Purplebricks in UK
and Homeday in Germany
- Acquisition of Universum (employer branding)
- Sale of aufeminin; early sale of Doğan stake
✓ ✓
✓ ✓
1
3 4
2
1) Includes changes from the adoption of IFRS 16 and corresponds to previous range of €205m - €225m.
9M/18 adj. group EBITDA up 14.4%, organic increase
of 6.7%
6
▪ Organic revenue increase of 3.6% and adj. EBITDA up by 6.7% organically
▪ Consolidation effects mainly from Logic-Immo, Universum and affilinet, deconsolidation of aufeminin
Comments
in €m 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 2,326.0 4.7% 3.6% 765.1 2.3% 2.0%
Advertising 1,569.1 8.7% 6.7% 510.3 7.1% 6.0%
Circulation 449.0 -7.2% -5.6% 154.3 -8.6% -7.1%
Other 307.8 4.4% 3.5% 100.4 -1.9% -1.2%
adj. EBITDA 541.4 14.4% 6.7% 186.9 19.7% 12.8%
Margin 23.3% 2.0pp 24.4% 3.6pp
1) Adjusted for consolidation and FX effects, as well
as IFRS 16 effects for adj. EBITDA.
Company presentation
7
Classifieds Media: adj. EBITDA up 20.9% in Q3/18
▪ Revenue increase driven by strong organic growth (+10.8%) as well as consolidation effects
▪ Adj. EBITDA increase of 15.0% due to organic increase of 8.0% as well as effects from IFRS 16 and
consolidation effects
▪ Margin up slightly in Q3 yoy, 9M/18 margin down due to investments
Comments
1) Adjusted for consolidation and FX effects, as well
as IFRS 16 effects for adj. EBITDA. in €m 9M/18 yoy org.1 Q3/18 yoy org.
1
Revenues 890.2 19.4% 10.8% 305.0 19.9% 9.8%
Advertising 860.6 17.5% 11.1% 292.8 17.0% 10.1%
Other 29.6 >100 % -11.6% 12.2 >100 % -10.0%
adj. EBITDA 353.5 15.0% 8.0% 130.2 20.9% 13.7%
Margin 39.7% -1.6pp 42.7% 0.3pp
Classifieds Media
Jobs classifieds with 16.4% organic growth in 9M/18
and lower margin due to investments
88
34%
▪ Strong organic growth of 16.4% in 9M/18, mainly driven by Continental Europe (+22.3% organic)
▪ Organic growth of 13.6% in Q3/18 due to a tough prior year comp
▪ Margin down 2.4pp due to planned investments for future growth in 9M/18, slightly up in Q3/18 –
margin expected to be significantly up yoy in Q4/18
Comments
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment
adj. EBITDA which includes costs of €8.2m in 9M/18 and €6.8m in 9M/17 (thereof business development, M&A and other), not allocated to the three subsegments.
Jobs
in €m 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 431.6 20.2% 16.4% 153.6 18.8% 13.6%
adj. EBITDA2 165.7 13.2% 6.6% 67.2 19.8% 13.8%
Margin 38.4% -2.4pp 43.7% 0.4pp
Classifieds Media
Real Estate classifieds with further good
development in Q3/18
99
▪ Reported revenue growth of 29.1% driven by consolidation effects from Logic-Immo (organic revenue
increase 6.3%) in 9M/18
▪ Re-acceleration of organic revenue growth at SeLoger to high single-digit in Q3/18
▪ Adj. EBITDA up 20.9% (+12.8% organically), decline of reported margin due to integration of Logic-
Immo (4ppts margin increase excl. Logid-Immo), continued strong margin improvement at Immowelt
Comments
Real Estate
in €m 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 278.2 29.1% 6.3% 94.4 30.8% 6.4%
adj. EBITDA2 132.6 20.9% 12.8% 46.8 24.1% 16.1%
Margin 47.7% -3.2pp 49.5% -2.7pp
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment
adj. EBITDA which includes costs of €8.2m in 9M/18 and €6.8m in 9M/17 (thereof business development, M&A and other), not allocated to the three subsegments.
Classifieds Media
General/Other with better margin in Q3/18
1010
▪ Revenue increase of 5.8% (4.4% organic growth) in 9M/18
▪ @Leisure with improved revenue development following slow start to the year, Yad2 with continued
negative impact from changes in the regulatory environment for real estate
▪ Adj. EBITDA up 8.6% (+4.0% organically) in 9M/18
Comments
General/Other
in €m 9M/18 yoy org.1 Q3/18 yoy org.
1
Revenues 180.4 5.8% 4.4% 57.0 7.8% 5.0%
adj. EBITDA2 63.4 8.6% 4.0% 18.9 14.1% 5.9%
Margin 35.1% 0.9pp 33.1% 1.8pp
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment
adj. EBITDA which includes costs of €8.2m in 9M/18 and €6.8m in 9M/17 (thereof business development, M&A and other), not allocated to the three subsegments.
Classifieds Media
News Media revenues only slightly below prior year
11
1) Adjusted for consolidation and FX effects, as well
as IFRS 16 effects for adj. EBITDA.
▪ Revenues down slightly by 0.5%, only minor effects from consolidation and FX
▪ 36.8% of revenues from digital activities
▪ National revenues with tough prior year comps in Q3/18 advertising, international revenue growth driven by
continued strong growth of Insider Inc.
▪ Adj. EBITDA reported on prior year level, driven mainly by effects from IFRS 16 (organically down 8.8%)
Comments
in €m 9M/18 yoy org.1 Q3/18 yoy org.
1
Revenues 1,089.6 -0.5% -0.1% 357.6 -3.3% -2.9%
thereof digital 401.5 12.7% 12.1% 135.4 13.2% 11.3%
digital share of revenues 36.8% 37.9%
Advertising 480.6 4.0% 3.2% 150.2 1.9% 1.3%
Circulation 449.4 -7.1% -5.5% 154.3 -8.6% -7.1%
Other 159.6 6.9% 6.9% 53.0 -1.0% -1.0%
adj. EBITDA 165.1 0.0% -8.8% 51.6 -4.8% -13.4%
Margin 15.1% 0.1pp 14.4% -0.2pp
News Media
Overview News Media National and International
12
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.
in €m 9M/18 yoy org.1 Q3/18 yoy org.
1 9M/18 yoy org.1 Q3/18 yoy org.
1
Revenues 781.8 -3.4% -4.2% 257.4 -6.7% -7.5% 307.8 7.6% 11.6% 100.2 6.4% 11.4%
thereof digital 204.6 11.2% 7.8% 69.1 10.4% 6.5% 196.8 14.4% 16.7% 66.3 16.3% 16.5%
digital share of revenues 26.2% 26.8% 63.9% 66.2%
Advertising 307.2 -1.4% -3.6% 92.8 -5.4% -7.8% 173.4 15.1% 17.5% 57.3 16.4% 20.0%
Circulation 359.9 -6.8% -6.8% 126.0 -8.1% -8.1% 89.4 -8.3% -0.3% 28.3 -11.1% -2.7%
Other 114.6 2.8% 3.3% 38.5 -5.1% -5.1% 45.0 18.8% 17.4% 14.5 11.6% 11.8%
adj. EBITDA 115.9 -10.8% -17.4% 35.0 -15.6% -22.5% 49.2 39.8% 23.9% 16.7 30.3% 18.0%
Margin 14.8% -1.2pp 13.6% -1.4pp 16.0% 3.7pp 16.6% 3.1pp
News Media National News Media International
News Media
▪ Revenues down yoy due to deconsolidation of aufeminin. Organic revenues up 1.3% in 9M/18 yoy: Reach-
based marketing slightly below 9M/17 (-0.8%) due to US exit of Bonial in Q4/17, Performance Marketing with
organic increase of 4.8%
▪ Adj. EBITDA up 11.4% (+8.9% organically). Reach Based Marketing adj. EBITDA with strong organic increase
of 22.4% due to US exit of Bonial, Performance Marketing with significant decline of 20.2% due to lower
incoming orders, negative FX effects especially from the US business and higher integration costs due to the
affilinet merger
Comments
Marketing Media development impacted by organic
EBITDA decline in Performance Marketing
13
1) Adjusted for consolidation and FX effects, as well as
IFRS 16 effects for adj. EBITDA.in €m 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 306.8 -8.9% 1.3% 89.0 -19.0% 0.8%
Advertising 227.9 -8.3% -0.8% 67.4 -14.5% 1.1%
Other 78.9 -10.7% 8.0% 21.6 -30.3% -0.1%
adj. EBITDA 62.7 11.4% 8.9% 16.0 0.6% 6.9%
Margin 20.4% 3.7pp 18.0% 3.5pp
Marketing Media
Overview Marketing Media Subsegments
14
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.2) Total adj. EBITDA includes costs of €6.2in 9M/18 and €6.6m in 9M/17 (thereof business development, M&A and other), not allocated to the two pillars.
in €m 9M/18 yoy org.1 Q3/18 yoy org.
1 9M/18 yoy org.1 Q3/18 yoy org.
1
Revenues 176.3 -22.2% -0.8% 46.7 -36.5% -1.4% 130.5 18.3% 4.8% 42.3 16.4% 3.6%
Advertising 150.6 -19.7% -2.7% 42.6 -27.9% -0.3% 77.3 26.7% 4.0% 24.8 25.6% 4.1%
Other 25.7 -34.2% 13.5% 4.1 -71.7% -13.4% 53.2 7.9% 5.7% 17.5 5.5% 3.1%
adj. EBITDA2 46.3 6.2% 22.4% 11.3 -7.8% 28.6% 22.6 17.4% -20.2% 6.7 13.9% -29.4%
Margin 26.2% 7.0pp 24.3% 7.6pp 17.3% -0.1pp 15.7% -0.3pp
Reach Based Marketing Performance Marketing
Marketing Media
Adjusted eps with strong increase in Q3/18
15
in €m 9M/18 9M/17 Q3/18 Q3/17
adj. EBITDA 541.4 473.4 186.9 156.1
yoy change
Depreciation / amortization (excl. PPA) -153.5 -100.0 -52.4 -34.1
adj. EBIT 387.9 373.4 134.5 122.0
Financial result -14.8 -7.7 -5.3 -6.0
Taxes -116.4 -121.2 -41.7 -41.1
adj. net income 256.7 244.4 87.4 74.9
thereof attributable to non-controlling interests 32.4 30.7 9.4 10.6
adj. eps1 2.08 1.98 0.72 0.60
yoy change (reported / organic)
Non-recurring effects 53.6 -31.3 -6.0 -14.1
Depreciation / amortization, and impairments of PPA -76.3 -73.8 -29.2 -21.2
Taxes attributable to these effects 13.4 24.1 9.6 6.8
Net income 247.4 163.4 61.9 46.4
14.4%
5.0% / 6.7%
19.7%
21.5% / 24.4%
1) Based on weighted average number of shares outstanding in 9M/18: 107.9m (9M/17: 107.9m).
Company presentation
Net financial debt higher because of IFRS 16 –
FCF in line with expectations
16
▪Net financial debt includes leasing liabilities of €359.6m (PY: €0.3m), thereof
€153.6m due to lease of Axel-Springer-Passage and high-rise headquarter in
Berlin since January 1, 2018
▪Net financial debt less effects from leasing liabilities €957.8m
Free cash flow (FCF) in €m Impact of leasing liabilities on net financial debt
1) Excl. pension liabilities. 2) Based on Bloomberg consensus for adj. EBITDA 2018.
Net financial debt of €1,317.4m1
in September 2018 (leverage 1.8x2)
226.3
268.5
220.9
280.3
9M/17 9M/179M/18 9M/18
FCF FCF excl. effects from headquarter real estate transactions
▪Net positive cash inflow of ~€165m until 2020 from sale of new Berlin building
(purchase price of €425m and tax payments of ~€30m expected in Q4/19 and
capex and sale related costs of ~€230m in 2018-2020)
Positive effects on cash flow going forward
Company presentation
Investments of ~€200m in early-stage portfolio since
2012
17
Selected Cases
Gain market insights and know-how
Learn about potential disruptors
Create early M&A access points
Financial upside
The strategic reasons for corporate early-stage investments
I
II
III
IV
Company presentationCompany presentation
Reported Organic(adjusted for effects from the adoption of IFRS 16 as
well as consolidation and FX effects)
Revenues Low to mid single-digit % growth1
Low to mid single-digit % growth1
adj. EBITDA Low double-digit % growth Mid to high single-digit % growth
adj. eps Mid single-digit % growth2
High single-digit % growth3
Group
Increased to:
Group guidance 2018 confirmed and increased for
adjusted eps
18
1) Revenue outlook based on 2017 revenues restated for negative effect of IFRS 15 adoption.2) Previously: Low to mid single-digit % growth. 3) Previously: mid to high single-digit % growth.
Company presentation
Segment outlook 2018: Guidance downgrade for
Marketing Media
19
Reported Organic(adjusted for effects from the adoption of IFRS
16 as well as consolidation and FX effects)
Classifieds
MediaRevenues Double-digit % growth Low double-digit % growth
adj. EBITDA Double-digit % growth High single-digit to low double-digit % growth
News
MediaRevenues Low to mid single-digit % decline Low single-digit % decline
adj. EBITDA Mid single-digit % growth Low to mid single-digit % decline
Marketing
MediaRevenues1 Low double-digit % decline2 Roughly on prior year level3
adj. EBITDA Mid to high single-digit % decline4 Low to mid single-digit % decline5
Services/
HoldingRevenues Mid single-digit % decline Mid single-digit % decline
adj. EBITDA Low to mid single-digit % growth6 Low to mid single-digit % growth6
1) Revenue outlook based on 2017 revenues restated for negative effect of IFRS 15 adoption. 2) Previously: High single-digit % decline. 3) Previously: High single-digit % growth. 4) Previously: High single-digit %
growth. 5) Previously: Low double digit % growth. 6) Improvement/smaller negative EBITDA.
Decreased to:
Company presentation
Classifieds Media
Classifieds Media: leading digital classifieds operator
Classifieds Media21
▪ Leading digital classifieds
operator
▪ Portfolio of market leading
classifieds: 76%1 of revenues
from #1 market positions
▪ Digital classifieds clear
beneficiary of structural shift
from offline to online
▪ Strong market positions
yielding high margins
Overview
Financials
Real Estate
▪ #1 in France
▪ #2 in Germany
▪ #1 in Belgium
Jobs
▪ #1 in Germany, Belgium
▪ #1 in UK
▪ #1 in Ireland, South Africa
Cars
▪ #1/2 in France
Generalist
▪ #1 in Israel
Vacation Rental
▪ #1 in Netherlands &
Belgium
Classifieds Media
2017 Outlook 2018 (reported) Outlook 2018 (organic2)
Revenues in €m 1,007.7 Double-digit % growth Low double-digit % growth
EBITDA (adj.) in €m 413.2 Double-digit % growthHigh single-digit to
low double-digit % growth
EBITDA margin (adj.) 41.0%
1) Based on FY/17 figures. 2) Adj. for effects from IFRS 16, consolidation and FX effects.
In 9M/18, digital classifieds contributed 61% to
adj. Group EBITDA
22
392448
499454
507559
595646
1765
134164
218
305355
413
2010 2011 2012 2013 2014 2015 2016 2017
Adj. EBITDA1 in €m
57% 58% 61%
+15%
Long-term adj. Group EBITDA development driven by classifieds
Axel Springer Group
Axel Springer Classifieds
Share of Group EBITDA (negative EBITDA S/H allocated proportionally to operative segments)X%
Classifieds Media
473
541
308354
9M/2017 9M/20189M/17 9M/18
1) excl. discontinued operations.
Classifieds with strong organic growth and high
underlying margins
Classifieds Media23
Revenues EBITDA margin, adj.
Margin 2015 2016 2017 9M/2018
Jobs 43.7% 42.9% 41.7% 38.4%
Real Estate 46.4% 44.9% 50.4% 47.7%
General/Other 30.7% 32.7% 32.0% 35.1%
Total classifieds 40.5% 40.3% 41.0% 39.7%
Organic growth
yoy 2015 2016 2017 9M/2018
Jobs +21.2% +17.6% +17.0% +16.4%
Real Estate +4.8% +6.3% +10.8% +6.3%
General/Other +4.0% +9.7% +6.3% +4.4%
Total classifieds +12.9% +12.5% +12.7% +10.8%
▪ Clear market leader in the UK in the new segment of
transactional digital real estate platforms, also active in
Australia, the USA and Canada
▪ April 2018: Purchase of 11.5 percent in Purplebricks
through capital increase and purchase of secondary
shares from existing holders; purchase price amounts
to a total of GBP 125m, corresponding to a price per
share of GBP 3.60
▪ July 2018: Increase to 12.5 percent paying GBP 3.07
per each additional secondary share (total of GBP 9m)
▪ Listed on the London stock exchange since Dec. 2015
▪ Board seat for Axel Springer
Minority investments in hybrid agent models
Classifieds Media24
▪ 50/50 holding company with UK market leader
Purplebricks
▪ Acquisition of 22% stake in Homeday in October 2018
(on top of 4% owned by Axel Springer already)
▪ Commission based business model
▪ Potential from additional revenue pool
▪ Participation in innovative business model in German
real estate market
The underlying markets of our assets show attractive
dynamics
Germany UK
Total online and offline marketing spend, 2012-2016 (in €m)Jobs
France Belgium
Real Estate
Germany
Online Mkt SpendOffline Mkt Spend
2012
29%
2016
50%
50%
1,170
71%
+2%1,091
21%
991
79%
906
64%
36%
781
52%
799
48%
+1%
35%
69%
31%571488
52%
48% 44%
92
56% 67%
8333%
Source: OC&C (05/2017) CAGR
+2%
2012 2016
2012 2016
65%
+4%
2012 2016 2012 2016
+3%
Classifieds Media25
The future of our markets: shift towards online
and constant growth continues
Germany UK
Total Marketing Spend by Channel, 2016-2020F (in €m)
Jobs
France Belgium
Real Estate
Germany
Online Mkt SpendOffline Mkt Spend
2016
50%
2020F
63%
1,447
50%+12%
1,170 15%
1,031
85%
991
79%
799
65%
903
77%
23%
723571
69%
102
67% 73%
92
Source: OC&C (05/2017) CAGR
2016 2020F
2016 2020F
72%
2016 2020F 2016 2020F
37% 21%
35% 28% 31%27%33%
+3%
6% 9% 5%
Classifieds Media26
StepStone: High organic revenue growth
9M/18 Financials
▪ Swedish employer branding specialist Universum
acquired in Q2/18
▪ Start of ‘The Partnership’ (Totaljobs & Jobsite)
with joint offer in Q2/18
▪ Candidate delivery ahead of competition in nearly
all areas
▪ Main market Continental Europe continues to be
growth driver with increasing customer number
(+8%) and high retention rate at 88%1)
Operational update
27
1) Both figures per LTM Sept-18. 2) Minor revenues recorded centrally and attributable to few operational entities
(mainly Universum) are not presented since those are not recorded in operational subgroups. 3) Combined adj.
EBITDA of subgroups does not equal sub-segment as central costs (mainly non-licensed product development costs)
and a few entities (mainly Universum) are not recorded in operational subgroups. 4) Including meinestadt.de which was
allocated to Jobs from General/Other in 2018 5) Adjusted for consolidation and FX effects, as well as IFRS 16 effects
for adj. EBITDA.
in €m 9M/18 9M/174) yoy organic
5)
Revenues2) 431.6 359.2 20.2% 16.4%
Continental 299.3 243.1 23.1% 22.3%
UK 92.4 88.1 4.9% 6.3%
SAON Group 30.3 28.3 7.2% 9.5%
EBITDA3) 165.7 146.4 13.2% 6.6%
Continental 153.8 136.8 12.4% 9.2%
UK 11.7 13.0 -9.7% -25.8%
SAON Group 9.2 9.5 -3.9% -5.6%
Margin 38.4% 40.7% -2.4pp
Continental 51.4% 56.3% -4.9pp
UK 12.7% 14.8% -2.0pp
SAON Group 30.2% 33.7% -3.5pp
28
108 111123 131 135 143 154
42 46 54 55 47 5267
0
5
10
15
20
25
0
50
100
150
200
250
300
350
in %
Q1/17
in €m
16%14%
Q2/17 Q3/17
22%
16%
Q4/17
19%
Q1/18
17%
Q2/18
14%
Q3/18 Q4/18
Group revenue and organic growth (€m)
▪ Q3/17 with strongest growth
rate due to additional revenues
on top of annual contracts
▪ 2018 revenues split more
evenly across the quarters due
to larger annual contracts
▪ H1/18 EBITDA decreased due
to investments in brand and
candidate delivery
EBITDAOrganic revenue growth Revenue
+17% +~17%
StepStone Group: Full year organic growth
expected on prior year level
Note: meinestadt.de included from Q1/18 following re-allocation to Jobs (from General/Other).
29
410
496
2010 201820122005 20112007 20082006 2009 2013 2014 2015 2016 2017 ¹
+29%
17% ~17%
organic growth
StepStone Group Revenue (in €m)
Continued double-digit organic growth expected
for 2018
1 Including meinestadt.de which was allocated to Jobs from General/Other in 2018.
Goal to become a comprehensive E-Recruiting
companyCareer
guidance
Search jobs
Browse jobs / be found
Research employer
Research salary
Application
Interview
Hire / Sign contract
Career
development
Orientation
Check cultural fitFollow-up
Applications
Job seeker journey
30
JOB SEEKER JOURNEY
Companies are charged for listings and access to
candidate profiles
Highly scalable with low
total cost per hire for
recruiter
Job Listings
Targeted branding products to
help employers stand out among
our candidates
Employer Branding
Effective process to fill highly specific
positions, but high cost per hire and
difficult to scale for recruiter
Direct Search
2008
Revenue share
2017
(GE
R/U
K)
88% 6% 6%
88% (98% / 61%) 10% (1% / 34%) 2% (1% / 5%)
31
343257202159
StepStone Continental: Continued strong
organic growth
Revenue
StepStone
Continental
58% 58% 59%54%
186
2015
151
2014
11792
+33%
+27%
20152014
+24%
+27%
+26%
EBITDA
Financial development by subgroup¹ (in €m)
Organic growth EBITDA Margin
32
2016
137
+23%
243
+22%
20172 2016 201729M/17 9M/18
299
+27%
9M/17 9M/18
51%56%
154
1) All subgroups adjusted to current company structure, minor revenue recorded centrally is not presented, non-licensed product
development costs are not recorded in operational subgroups, Universum (among others) is not allocated to one of the operational
subgroups. 2) Including meinestadt.de which was allocated to Jobs from General/Other in 2018.
StepStone Continental: #1 positions in candidate
delivery in most core markets Candidate Delivery¹ - StepStone Continental
Germany AustriaBelgium
33
1) Average # of applications per job ad. Source: TNS, figures are corrected for outliers.
3.0
3.5
3.7
3.9
4.9
5.5
5.9
14.9
Meinestadt
Indeed
Jobware
Monster
Stellenanzeigen
StepStone DE
3.5
4.1
5.7
6.9
7.6
7.8
13.3
Monster
Vacature
Jobat
Regiojobs
Indeed
StepStone BE
1.7
3.9
6.6
13.1
16.3
17.4
19.7
Indeed
Monster
kurier.at
StepStone AT
Karriere.at
derStandard
StepStone Continental: Increasing customer
numbers and high retention rates
StepStone Continental
Customer number (k)1
1) Customer count based on active contracts in a year except StepStone Germany, meinestadt.de and TJG where end customer (listing owners)
are counted. 1st time inclusion: Ictjob (Q3/17), meinestadt.de and Turijobs (both Q1/18). 2) All subgroups reported based on pro forma development; based on invoiced sales.
34
57.764.4
71.7
90.197.2
2015 2016 2017 LTMSept-17
LTMSept-18
CAGR+11%
+8%
Customer Retention Rate (%)2
StepStone Continental
Overall RetentionLarge customers
86% 88% 87% 88%
96% 97% 98% 98%
2015 2016 2017 LTMSept-18
StepStone
Continental
LTM figures are pro forma including
meinestadt.de, Turijobs and iciformation
8811813078
StepStone UK: Upside potential from
‘The Partnership’
24%
29%
20% 13%
16
2015
24
2014
38
19
+/-0%+67%
2017201620152014
+7%+3%
+8%
▪ Totaljobs acquired early 2012, Jobsite late 2014
▪ Introduction of ‘The Partnership’ creates upside
potential from more attractive offer to customers and
also from synergy effects on the cost side (e.g.,
integrated platforms and overhead functions)
-8%
StepStone
UK
Revenue EBITDA
Financial development by subgroup¹ (in €m)
1) All subgroups adjusted to current company structure, minor revenue recorded centrally is not presented, non-licensed product development
costs are not recorded in operational subgroups, Universum (among others) is not allocated to one of the operational subgroups.
35
12
9M/18
92
+5%
2016 2017
119
9M/17
+6%
9M/189M/17
13
13%15%
Organic growth EBITDA Margin
‘The Partnership’: From separate companies, brands and cultures to one unified organization
36
Market facing effects
▪ One company, one platform, one sales force
▪ More compelling business proposition
▪ One CV-database
▪ Best-in-class candidate delivery
Internal effects
▪ Efficient traffic sourcing
▪ Cost efficiencies
▪ Improved IT development effectiveness
Resulting in
▪ Improved retention and share of wallet
▪ Accelerated new business
▪ Wider market coverage
KPI Jobsite Totaljobs Partnership1
# Applications /
month1.5m 3.8m 6.3m
Conversion rate
(appl./ visit)0.22 0.25 0.26
CV database 3.8m 11.8m 18.3m
LinkedIn2: ~25m
CV-
Library2:~13m
Reed2: ~11m
Oct. 2017 Oct. 2018
1) Incl. StepStone UK verticals.2) Linkedin: number of registered users
per Oct 2018 (source: Statista); CV-
Library and Reed numbers as stated
on respective websites per Nov 2018.
Customer number (k)2
1) Average # of applications per job ad. Source: TNS, figures are corrected
for outliers. 2) Customer count based on active contracts in a year.
37
Customer Retention Rate (%)4
StepStone
UK
Candidate delivery1
2.8
4.2
10.7
11.6
14.7
17.0
23.1
Monster
CV Library
Reed
Jobsite
Indeed
TotalJobs‘The Partnership’ with negative technical impact on
LTM Sept-18 due to deduplication of contacts.
41.3
36.9
43.8
41.841.0
2015 2016 2017 LTMSept-17
LTMSept-18
CAGR+3%
-2%
Overall RetentionLarge customers
80% 82% 81% 80%
95% 95% 93% 93%
2015 2016 2017 LTMSept-18TotalJobs and Jobsite with
combined potential of 37.8
StepStone UK: High values in relevant KPIs
3) Changed business focus of Jobsite after acquisition, removed low value contracts. 4) Retention rates LTM September 2018 temporarily
affected by launch of ‘The Partnership‘ which caused phasing of contract renewals from customers of both TotalJobs and Jobsite who
decided to renew after expiry of both former contracts; all subgroups reported based on pro forma development; based on invoiced sales.
3
1193430
+30%+14%
201620152014
+11%+15%
▪ SAON Group acquired in late 2013, CareerJunction (South Africa) in 2015
▪ Growth in almost all countries around the world
SAON
Group
Revenue EBITDA
23 3430
Financial development by subgroup¹ (in €m)
1) All subgroups adjusted to current company structure, minor revenue recorded centrally is not
presented, non-licensed product development costs are not recorded in operational subgroups,
Universum (among others) is not allocated to one of the operational subgroups. Organic growth EBITDA Margin
38
38
2017
+10%
+11%
8 10 10 12 10 9
37%
34% 30% 33%
0%
10%
20%
30%
40%
4
6
8
10
12
14
2014 2015 2016 2017 9M/17 9M/18
28 30
9M/17 9M/18
+9%30%
34%
+7%
SAON Group: Strong organic growth rates
4.1
8.7
9.5
17.1
17.5
22.3
NIJobs
Indeed
Irishjobs
Jobs.ie
South Africa3Ireland
Candidate Delivery¹ - SAON Group
39
13.4
33.7
48.7
65.5
153.9
Careers24
Indeed
CJ
Pnet
1) Average # of applications per job ad. Source: TNS, figures are corrected for outliers.2) NIJobs is the leading player in Northern Ireland. 3) Results of competitors may be unstable across the surveys due to low sample sizes.
SAON Group: Best in class in candidate delivery
2
72% 73% 74% 75%
82%88% 86% 88%
2015 2016 2017 LTMSept-18
SAON Group: Stable customer numbers and
improving customer retention
StepStone Continental
Customer number (k)1,2
1) Customer count based on active contracts in a year. 2) Restated figures. Tecoloco companies now included in complete history.
Figures subject to adjusted counting methodology. 3) All subgroups reported based on pro forma development; based on invoiced sales.
40
Customer Retention Rate (%)3
StepStone Continental
Overall RetentionLarge customers
SAON
Group 13.2
14.1
14.6 14.7 14.7
2015 2016 2017 LTMSept-17
LTMSept-18
CAGR+5%
0%
+26% Candidate delivery YoY, +130% increase in
sales efficiency2
+98% Candidate delivery YoY, +25% increase in
sales efficiency2
Investments in sales (headcount, tooling) and marketing
(traffic acquisition & branding)
Investments in same areas as in Austria: Focus on
sales and traffic
pre investment enhanced invests
20152012 2013 2014 2016 2017 2018
7.6%
~40%
Invoiced sales
20152012 20162013 2014 20182017
0.6%
30.9% >20%Invoiced sales
Austria: From #4 in 2014 to clear #21 France: #6 at start of growth initiatives -
First payoff from investments1
1) Market positions in terms of revenue. 2) E.g. call activities in telesales.
Source: Company reports and management estimates.
pre investment enhanced (ongoing) investments
Growth cases in Austria and France progress
41
Additional sales headcount¹
Improved sales efficiency via tech and tooling
Customer retention
Customer development
Target long tail of the market to gain market share
Smart and predictive lead generation
Hyper-care for key customers
Increased frequency of sales activities
Closer, more intense customer approach (field & inside sales)
Growing support and analytics for sales force
Hire
▪ 1-3 months: Onboarding
▪ 4-6 months: Small targets & first deals
▪ 6-9 months: Being profitable
▪ +9 months: Contributing to StepStone growth
Exemplary Sales Professional journey
1) Attrition of existing sales heads to be decreased through improved training, compensation and benefit packages; Improvement in HR and branding to attract new talent.
Increased sales headcount and improved efficiency
Customer acquisition
42
0
25
50
75
Sources: TNS; Google trends.
0.9%
2018201720162013 2014 2015
+6.6%+6.8% 0.0%
Web search for keyword ‘jobs’ in DE
16.62
Mar 2016 Mar 2017
17.19
14.92
Mar 2018
2.482.24
2.52-10% +13%
Contradicting trends show
shortage of candidates
Candidate Delivery (CD)
Candidate DeliveryRelative CD vs next competitor
Customer focus: More listings require StepStone to acquire even more candidates in a flat market
43
SEA
Partner
Other Paid
JobAgent
SEO
Direct
Other Organic Paid
(~60%)
Organic
(~40%)
Strategic traffic network
▪ StepStone has in total ~450 traffic partners
▪ Top partners include well known brands such as
Bild, Handelsblatt, T-Online, Kimeta, Gehalt.de
and Experteer
▪ The network is characterised by portals that
provide a large / national reach. StepStone’s
network is by far the largest in the market
Source: Adobe Analytics; Other Paid includes Banner and Retargeting; Other Organic includes Mailings, Newsletter, Referrers and Social Media.
StepStone has a diversified traffic mix
StepStone traffic sources (exemplary, FY17)
44
▪ A third of clicks following all job related
searches @Google lead to StepStone
▪ For IT job related searches almost half of
all clicks lead to StepStone
▪ Google searches related to engineering
jobs result in a click for StepStone in 68%
of cases
SEA
Relates to /
optimises
SEA traffic
46%
Global Clickshare IT
68%
Engineering
clicks following Google searches
for all job related keywords
clicks following
Google searches for
keywords related to
engineering jobs
clicks following
Google searches for
keywords related to
IT jobs
33%
Google Clickshare for paid
Source: Google data Q3/18, comparison for top-5 competitors for paid clicks.
For IT and Engineering StepStone already takes highest click share on Google Paid Ads
45
United Kingdom (G4J live since July 2018): StepStone UK is fully integrated with Google for Jobs
▪ Fragmented market situation – all major competitors (except Indeed) are integrated
▪ StepStone UK participates for now, but invests in parallel in unique content and branding
▪ Measurable effects so far: Net gains in applications from Google SEO traffic (organic blue links plus Google for Jobs)
South Africa (G4J live since March 2018): Pnet and Careerjunction do not participate
▪ StepStone assets are in a leading position and own a large share of unique content (jobs)
▪ There is no benefit to provide content to Google for free
▪ No negative effects so far for Pnet and CareerJunction
Spain (G4J live since June 2018): Turijobs does not participate
▪ Turijobs is a leading niche player in hospitality with a high brand recognition and unique content
▪ No negative effects so far for Turijobs
Participation in Google for Jobs is decided individually, market by market
46
Group
GTO
Group
COO
Managem
ent B
oard
1
Decrease time to market
▪ Reuse newly built components to test ideas
▪ Share AI algorithms
▪ Share product & technical designs
Increase efficiency
▪ Align IT platforms
▪ Mutualize training, consulting and IT investments
Frame joint long-term strategy and support
execution
▪ From classifieds to transactional marketplaces
▪ (Early-stage) investments into value chain extension
Steer strategic group projects
▪ Joint business initiatives (e.g. seller leads)
▪ Initiatives to “grow together” in group
1) Among others; minority investments.
Classifieds Media
Introducing the AVIV group: Our goal - to capturethe full potential of the next period of growth
47
Mortgage
~1.63 bn€1
Moving
~250 m€3
Home insurance
~160 m€2
Seller
leads
1
Hybrid
models
2
Adja-
cencies
3
Providing the agent with additional core
services1
Satisfying even more consumer needs
with our hybrid agent models2
Capturing adjacent markets with
transaction-triggered services3
Our three priorities
Online Classifieds
~350 m€
Marketing spending
~650 m€
Agent commission
pool
~6 bn€
Total addressable adjacent
markets
~2 bn€
1) 2) 1% of total market. 3) 5% of total market. Sources: OC&C (05/2017), McKinsey. Notes: Marketing spending includes spending of agents, property developers and private sellers in online and offline channels. Figures apply to German RE market.
Classifieds Media
Our three priorities allow us to tap into large markets beyond listings
48
SeLoger margin decline due to consolidation of
Logic-Immo
9M/18 Financials
▪ Closing of Logic-Immo acquisition in Q1/18
▪ Joint product offering of SeLoger and
Logic-Immo started in September 2018
▪ SeLoger ARPA (incl. verticals) increases by
6% yoy to €762 in 9M/18
▪ # of professional listings1) on Seloger.com: 995k
(Logic-Immo: 720k, pre deduplication)
▪ Unique users2) of seloger.com up 5% to 5.8m,
unique user of logic-immo.com +3% to 2.9m
Operational update
49
3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.
in €m 9M/18 9M/17 yoy org.3)
Revenues 158.8 104.3 52.2% 5.2%
EBITDA 76.4 61.2 24.8% 9.3%
Margin 48.1% 58.7% -10.6pp
1) Source: autobiz; monthly listings, 9M/18 average.2) Source: Médiametrie 9M/18 vs 9M/17.
1) Sales of individual houses and apartments sold by the unit, excluding any professional premises, whole multi-apartment
buildings and ancillary premises (cellars, parking spaces, fractions of common condo property, etc.) sold separately.
Source: OC&C (05/2017), Conseil Général de l’Environnement et du Développement.
Structural tailwind in French real
estate market supports…
Real estate market in France is still buoyant and
online classifieds are expected to continue to grow
LTM cumulated existing home sales transactions in k, 02/2012 –
10/2018, France1
…growth in all online channels beyond classifieds
In €m
799
22%
14%
20%
2012
781
17%
27%
21%
CAGR+3%CAGR
+1%
2020F
47%
25%
9%
19%
2016
903
Online
Offline
750
Oct 18
1,000
500
Feb 12
Other Offline Advertising
Print Advertising
Other Online Advertising
Online Classifieds
35% 43%
-8%
+1%
CAGR
(16-20F)
+5%
+6%
50
1) excl. effects of Poliris business, deconsolidated in 2016.
Constant roll-out of new products has been valued
by customers
SeLoger will close another strong year reconfirming
its leading position
Average monthly ARPA made with professional customers, in €
Historical Revenue and EBITDA performance
Revenues and EBITDA in €m1
2011 2012 2013 2014 2015 2016
8091 98 106
116128
140
104
159
4353 58 62 71 76 82
6176
+9%
+9%
CAGR
2011-2017
676
594424 456496 549
615
382 406 440 483544
SeLoger excl. verticals
SeLoger incl. verticals
CAGR
+10%
51
2017
632
724
EBITDARevenues
2011 2012 2013 2014 2015 2016 20179M/18
400
800
0
660
762
628
719
9M/17
+5%
+6%
9M/189M/17
Source: autobiz.
Also on the professional listings side, SeLoger
maintained its strong positionAverage of monthly listings 9M/18 in k1
995
1,276
766720
543523
private listings
52
+2%
# Visits
SeLoger – Traffic SeLoger + Logic-Immo – Traffic
Low
High
The merger helps SeLoger and Logic-Immo to close
gaps in previously underserved areas
53
840k
840k
# of resale pro listings /
January 2018 - pre-merger
≈ 150k
≈ 50k
Estimated # of incremental listings
with Aval / Logic-Immo aquisition
≈ 900k
≈ 1,000k
Sources: Autobiz / internal analysis.
Incremental listing potential from Logic-Immo
results in leading position for pro listings in France
54
+900 customerswith an add-on
+50k listings on SeLoger orLogic-Immo
+▪ Add-on enables agentsto extend their listingspublication to the othersite
▪ Preparing the new„Full Duo“ offerin 2019
SeLoger and Logic-Immo are commercially tapping
the potential through DUO offer
55
≈900
SL Customers
▪ Launched at SeLoger in January 2018,
visibility and lead generation product
▪ Dedicated organization as a
new market
▪ Logic-Immo seller product on pre-sale
to be launched in January 2019
▪ SeLoger will extend to premium qualified
leads and luxury market by 2019
▪ AVIV Group strategic initiative with
synergies among assets: shared price
estimate engine with Immoweb,
based on AI
“Seller lead” strategic initiative has already
demonstrated high performance at SeLoger
56
Immowelt: Margin significantly up at 40%
H1/18 Financials
▪ ARPU increases by 12% yoy to €324 in 9M/18
▪ Focusing on DUO ≥ 5 customers going forward
▪ Visits1) at 43.3m (+/-0% yoy)
▪ # of residential listings1) at 173k (-11%) yoy
Operational update
57
2) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.1) Source: company information; monthly visits/listings, 9M average.
in €m H1/18 H1/17 yoy org.2)
Revenues 58.2 54.3 7.3% 7.3%
EBITDA 23.3 18.3 27.7% 23.7%
Margin 40.1% 33.7% 6.4pp
+3% annual growth in agent
commission pool until 2020 ...
Positive outlook for online property portals –
9% annual growth in Germany expected until 2020... fuels favourable marketing spend
for online property portals
Agent commission pool (bn €) Property marketing spend (in €m)
+6%
+4%
2020F
723
2016
571
2012
488
CAGR
16-20F
+2%
+10%
-4%
+9%
+3%
+6%
Sales
Rental
2020F
6.4
5.7
0.7
2016
5.7
5.1
0.6
2012
4.5
3.7
0.8
Other offline adv.
Other online adv.
Print adv.
Online portals
407
287176
CAGR
Sources: Immowelt, OC&C (05/2017;
German residential real estate only).
58
9.111.9 13.8 14.8 15.5 15.4 15.1 15.3 14.9 15.0 15.7
22.1 22.3 22.6 22.8 22.6 22.4 22.0 22.0 21.7 21.0 19.9
Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18
DUO migration completed and focus on customers with higher volumes
59
Single/Double DEDUO ≥ 5 DUO 1-2
DUO ≥ 51 customer base with high ARPU achieved significant growth since March 2016
Number of agents in Germany2 (in thousands)
1) DUO: 1 contract, 2 portals / Single: 1 contract, 1 portal / Double: 2 contracts, 2 portals / GER only; the “DUO x” contract allows the simultaneous listing of x properties during the contract time (x slots), DUO ≥ 5 refers to any DUO contract with at least 5 slots. 2) Real estate professionals with a term contract (term usually 12 months).
IS24 core agents
17.017.417.6 17.4 17.217.0 17.518.5
Decline due to increasingly overall stagnating offer
The German listings market is contracting
Comments
▪ Listings in Germany have been under pressure over the past years
▪ Decrease driven by an overall stagnating offer in the German housing market
▪ In order to mitigate the decline in listings Immowelt actively takes counteractions:
▪ Increasing product and price differentiation to activate further potential listings
▪ Individual and temporary flat-options for agents based on their DUO contracts
Listings in German housing market1 (average per month in
thousands)
0
50
100
150
200
250
300
0
50
100
150
200
250
300
9M/17 9M/18
-5%
1) Houses, apartments for sale and rent in Germany; Direct comparison with IS24 only partly possible due do different package models.Source: IW management estimate and internal data collection.
-11%
60
ARPU with strong growth over the last quarters –increased value creation for agents drives growth
61
1) ARPU = Average Revenue Per User: monthly revenues, divided by the number of agents (Immowelt Group DUO and non-DUO agents in Germany with a term contract). 2) “DUO x” contract allows the simultaneous listing of x properties during the contract time (x slots); currently all customers with a DUO 1 or DUO 2 contract are being migrated on DUO contracts with at least 5 slots.
ARPU (€/month)
258 268 279 291 300 306 314 320338
Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18 2017
Q3/18
shows first
effects of
DUO 1-2
migration2
763
294
Contract migration and price increases drive ARPU1 growth …
ARPU (€/month)
…but still below main competitor
+16%
+13%
Revenue growth of 7% from 9M/17 to 9M/18
2018 will be another successful year for Immowelt –Strong profitability increase expected
Revenue (€m) EBITDA (€m, % of revenue)
EBITDA margin reaching 40% this year
98111
2016 2017
8288
9M/17 9M/18
+13%
+7%
Margin target reached one year
earlier than guided in 2017
>40%
20%
19
37
2016 2017 2018e
20% 34% ~40%
+93%
62
Immoweb with high single-digit revenue growth and
strong margin
H1/18 Financials
▪ ARPA increases by 5% yoy to €540 in 9M/181)
▪ # of listings1) up by 6% yoy to 153k
▪ Real visitors2) down by 5% with a monthly
average of 1.5m in 9M/18
Operational update
63
1) Source: company information, 9M/18 average.2) Source: CIM, 9M/18 average.
in €m H1/18 H1/17 yoy org.3)
Revenues 21.8 20.0 9.2% 8.9%
EBITDA 14.1 13.1 8.0% 8.0%
Margin 64.8% 65.5% -0.7pp
3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA
Solid market growth over the last decade translated
into online marketing budgets
Source: Statistics Belgium, OC&C (05/2017).
Sales Transactions Index
Average Sales Price Index
Indexed property sale transactions in Belgium, 2005–2016, 2012 = 100 Property Marketing spend by channel, in €m
130
100
70
201620142012201020082006
109
102
Other Offline Advertising
Print Advertising
27%
17%
83
14%
42%
2020F
102+3%
17%
2012
18%92
2016
22%
56%51%
+3%
-3%
CAGR
(12-16)
CAGR
(16-20F)
-2%
+6% +4%
-7% -2%
+8% +5%
+11%
16%
11%9%
Online
Offline
Other Online Advertising
Online Classifieds
Belgian property market is very stable… …and relevant budgets are expected to expand
CAGR 2013-2016
64
Immoweb: THE reference for property search
“Belgians have a brick in their stomach…”
Home ownership rate by country in 2016
…and when it comes to real estate, 8 out of 10 Belgians
think of Immoweb
Unaided awareness questionnaire with 7.2k respondents in 09/2016
Source: OC&C (05/2017), Produpress study, Eurostat1) Latest available 2014.
BelgiumFranceGermany1
58%
46%
70%
78%
2%6%
x12.4
65
+24pp
Immoweb attracts almost twice as many visitors than
#2 competitor…
Average of monthly real visitors in 9M/181
…leading to strong and highly engaged traffic on
Immoweb
Average of monthly audience statistics on Top3 RE portals in 9M/181
Source: CIM, Statistics Belgium. 1) Selected players (excl. app traffic).
1.9x 2.0x
22%
Visits
20%
15m
58%
81%
10%
153m minutes
Time spent
9%
66
Immoweb outraces Belgian competition
in market reach
2731
3336
40
20 2216
2022
25 26
13 14
2013 2014 2015 2016 2017 H1/17 H1/18
350 385 410 460 514 515 540
CAGR
+10%
Immoweb: Consistent revenue and EBITDA growth
Successful growth of ARPA over the
last years...
Weighted average monthly ARPA from professional
customers, in €
...results in strong revenue growth at leading EBITDA margins
in €m
2017201620152014
61% 64% 67% 70%
EBITDA EBITDA margin
CAGR
+10%
Revenues
67
9M/17
67%
9M/18
+5%
2013
66% 65%
Car&Boat Media: Organic growth driven by ARPU
increase
H1/18 Financials
▪ ARPU up by 11% yoy to €451 in 9M/18
▪ # of professional customers1) slightly (-1%)
below prior year at 8.4k
▪ # of professional listings1) down by 1% yoy
to 271k
▪ Unique visitors2) up by 19% to 4.5m
Operational update
68
1) Source: company information; monthly, 9M/18 average2) Source: Mediametrie (9M/18 vs 9M/17); limited comparability of 9M/18 figures to prior-
year period due to new methodology regarding the measurement of mobile traffic
introduced by Mediametrie in 9M/18
in €m H1/18 H1/17 yoy org.3)
Revenues 31.3 29.5 6.2% 6.2%
EBITDA 15.2 13.7 10.4% 7.2%
Margin 48.4% 46.5% 1.8pp
3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA
19
32447
271
LaCentrale works with professionals
that have a significant used car activity
Sources: Company Information1) Professional ads divided by # of professionals on platform.
Professional listings Listings per professional1
-39% +68%
(in k, monthly average 9M/2018) (in k, monthly average 9M/2018)
69
1) Listings are based on 9M/18 figures.
298
27
461
447271
907
Stable traffic and listings development versus
next competitor
Sources: Company Information.
Total listings
(in k, monthly average)1
Traffic development since Apr. ’15
(Index = 100)
Listings development since Apr. ’15
(Index = 100)
Private
Professional
20162015 2018
4.5m12.0mTraffic
9M/2018
70
201720162015 20182017
Carboat Media has benefited from constantly
growing monetization
Monthly customers
Monthly ARPU (in €)
71
* CAGR 10/13-09/18.
Source: Company Information.
240
290
340
390
440
490
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
Avg. ARPU
growth 7%*
Monthly customers: 8,280
€463
Jan 2009 Sept 2018Sept 2013
CAGR+14%
Carboat Media developed its EBITDA positively
since AS acquisitionRevenues & EBITDA (in €m)
2012
20.8
48.2
2011
18.7
45.2
2016
24.3
55.2
2015
20.9
52.1
2014
20.9
50.5
2013
20.3
48.5
Revenues
EBITDA
CAGR+4%
AS acquisition: July 2014
2017
72
59.4
27.0
H1/17 H1/18
29.5 31.3
15.213.7
+10%
Yad2 with headwind from FX and slower organic
growth due to difficult real estate market
H1/18 Financials
▪ # of listings: 413.8k (-4% yoy) in 9M/18
▪ Unique visitors down by 13% to 2.4m
(9M/17: 2.7m)
▪ Visits down by 7% to 11.2m (9M/17: 12.1m)
Operational update1)
73
1) Source: company information; monthly listings/UVs/visits
in €m H1/18 H1/17 yoy org.2)
Revenues 18.9 20.1 -6.0% 1.1%
2) Adjusted for consolidation and FX effects
Yad2 is best positioned to further grow its
business along three strategic initiatives
Israel’s #1 Generalist
#1
Real Estate#1
Second Hand
Become #1
in Jobs
#1
Cars
1
1 Organic Growth
Getting closer to the transaction
Explore adjacent opportunities
2
3
Comission-based
business models
New car &
tire sales
Commercial &
luxury real estate
Financing, loans,
insurance products
74
Strong network effects provide Yad2‘s customers
with significant liquidity and reach
Sources: 1) Company Information, 2) Similarweb, desktop & mobile traffic
(in k, monthly average 9M/18)1
Visits(in m, monthly average 9M/2018)2
7.5
>2x
>9x
414187 143 76 8
2nd Hand Real Estate Cars Jobs
75
>23x
>25x
11.2
Listings
28% 25% 13%
Yad2 revenues impacted by regulatory changes in
real estate and negative FX in 2018Revenue Development
18.4
2016
34.9
2015
26.9
20141
Revenues in €m
Organic YoY growth
Sources: Company Information, Drushim acquisition closed in Sept. 2015.1) 2014 represents FY as AS acquisition closed in May.
Leading revenue stream impacted by
regulatory changes
Second largest revenue stream. Since 2013
paid classifieds product for car dealers
Gaining importance since Drushim acquisition
in 2015 with goal of becoming clear #1
76
9%
2017
40.0
H1/17 H1/18
20.1 18.9
1%
@Leisure with improved performance following
slow start to the year
H1/18 Financials
▪ Full service (Belvilla, Land & Leisure):
pro forma booking value1) down in 9M/18 by
10% yoy to €177m
▪ Self service (Traum-Ferienwohnungen):
total listings2) in Europe up in 9M/18 by
10% yoy to 84k
▪ Disposal of casamundo in Q3/18
Operational update
77
1) Source: company information2) Source: company information, 09/17 vs. 09/18
in €m H1/18 H1/17 yoy org.3)
Revenues 73.2 69.1 6.0% 2.7%
EBITDA 17.1 14.9 14.5% 3.4%
Margin 23.3% 21.6% 1.7pp
3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA
Homeowner
Secondary
homes
Primary
homes
@Leisure focuses on the supply/homeowner side of
the market
Guest
Source: Company information per Q3/18.
Full-service
>31k Inventory
Self-service
>84k Inventory
78
Aggregator
Note: Graph shows simplified competitive landscape. Because of hybrid models, landscape is more complex than depicted.
Companies offer differing service levels, take rate
increasing with the service level
30% 50%2% 15%
Take
rate
Full-service
Self-
Service
Self Service
Full Service
Content
management
Key Exchange
and cleaning
Customer
Service
Calendar
Management
Booking, Invoice &
Cash Collection
Acquisition of
Guests
Acquisition of
Homeowners
Additional services
Pricing
management
79
@Leisure with “buy and build” strategy
@Leisure full year revenue and EBITDA (€m) Notes
▪ H1 with higher revenues and EBITDA (margin) due
to seasonality (Q1 strongest quarter in vacation
rentals)
▪ Outlook: Further investments into post-merger
integration, data and product offerings in 2018,
mid-term return to ~20% EBITDA margin
Revenue as reported EBITDA as reported
20162015
55
1411
90
20% 15%
x% EBITDA margin
80
16%
2017
125
19
H1/17 H1/18
22%
69
15 23%
73
17
News Media
News Media segment at a glance
News Media82
▪ Focus on market-leading media
brands with clear path to digitization
▪ National News Media dominated by
unique asset BILD
▪ Presence in English-speaking media
market with Insider Inc. and
eMarketer
▪ Innovative mobile news service for
Samsung devices (upday)
▪ Guidance for stable EBITDA (adj.)
in News Media in a range between
€225m - €245m for 2017-20191
Overview
▪ BILD group
▪ WELT group(formerly: WELTN24 group)
▪ Insider Inc.
▪ eMarketer
▪ upday
▪ Ringier Axel Springer Media
(Poland, Hungary, Serbia, Slovakia)2
▪ Ringier Axel Springer Schweiz3
National International
News Media
(Main activities)
2) Fully consolidated (50% stake). 3) Consolidated at equity. 4) Adj. for effects from IFRS 16, consolidation and FX effects.
Financials2017 Outlook 2018 (reported) Outlook 2018 (organic4)
Revenues in €m 1,509.8Low to mid
single-digit % declineLow single-digit % decline
EBITDA (adj.) in €m 218.8 Mid single-digit % growthLow to mid
single-digit % decline
EBITDA margin (adj.) 14.5%1) Including changes from the adoption of IFRS 16 and
corresponds to previous range of €205m - €225m.
83
Total net reach 2018:
>300m monthly UU Axel Springer Digital/Print
Source: Various national sources for net reach, overlap of print and digital readership estimated based on selected country data.
Total net reach 2013:
>85m monthly UU Axel Springer Digital/Print
Print 2013
69mDigital 2013
49m
Print 2018
53m
Digital 2018 (including Upday and
Insider Inc.):
290m
Global reach: more than 300 million monthly unique
users worldwide
News Media
0
100.000
200.000
300.000
400.000
500.000
600.000
May-14 Jan-15 Sep-15 May-16 Jan-17 Sep-17 May-18
Monetizing content in digital: positive development
News Media84
Digital subscribers
Source: IVW.
+11.9% November 2018
vs.
November 2017
85,661
422,043
52,672
200,571
85
40% 49% 53% 35% 37% 42
%
▪ Revenue CAGR 2015-17 of 38%
▪ Profitable in 2018 YTD
▪ Re-invest near-term profits in growth opportunities; subscriptions, commerce, editorial, original programming
▪ Long-term EBITDA margin of 20%+
▪ Leading digital brand for business journalism
▪ Strengthened market leadership in 2018
Source: Comscore.
0
10
20
30
40
50
60
70
80
Jan16
May16
Sep16
Jan17
May17
Sep17
Jan18
May18
Sep18
Insider Inc.: Market leader in the US
4356
81
2015 2016 2017 2018e
Revenue development in $m
+30%
+46%
CAGR2015-17
+38%
Traffic comparison (unique visitors, m)
News Media
eMarketer – leading provider of high-quality research
and digital market data for companies and institutions
86
▪ Founded in 1996; based in New York City
▪ ~1,200 corporate subscribers (2/3 of Fortune 500 and
2/3 of US top national advertisers)
▪ ~10,000 citations in worldwide media per month
▪ Highly profitable business model with margins 40%+
Company profile High customer satisfaction and retention
News Media
73.7 76.3
91.6 89.183.3
78.3
103.298.1
2016 2017 2016 2017
1) As of December 31, 2017. Source: Company information.
Limited Seat Open Access
Renewal Rate (in %)
by subscription type1
Recapture Rate (in %)
by subscription type1
upday: Key player in the news aggregator space and
continued growth – break-even expected in 2019
News Media87
Monthly active users (in millions)
12.2 2.3 N/A
8.2 1.8 10.8
7.3 2.1 N/A
updayGoogle
News
Apple
News
Source: Comscore, October 2018.
0
5
10
15
20
25
30
Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18
Monthly unique users (in millions)
Marketing Media
Marketing Media segment at a glance
Marketing Media89
▪ #1 positions in all major
marketing business models
▪ European market leader Awin
in performance marketing
merged with affilinet
▪ Sale of aufeminin closed as of
end of April 2018
Overview
Financials
▪ Idealo
▪ Bonial
▪ Finanzen.net
▪ Awin
Reach Based Marketing Performance Marketing
Marketing Media
(Main activities)
2017 Outlook 2018 (reported) Outlook 2018 (organic1)
Revenues in €m 984.5 Low double-digit % decline2,3 Roughly on prior year level2,4
EBITDA (adj.) in €m 95.6 Mid to high single-digit decline5 Low to mid single-digit % decline6
EBITDA margin (adj.) 9.7%
1) Adj. for effects from IFRS 16, consolidation and FX effects. 2) Revenue outlook based
on 2017 revenues restated for negative effect of ~€500m from IFRS 15 adoption.
3) Previously: High single-digit % decline. 4) Previously: High single-digit % growth.5) Previously: High single-digit % growth. 6) Previously: Low double-digit % growth.
Sale of aufeminin closed at highly attractive
purchase price
Marketing Media90
Deal terms
▪ Dec. 12, 2017: Put option agreement signed
with Télévision Française S.A. (TF1) for the
78.43% stake in aufeminin
▪ Price per aufeminin share of €38.74
corresponded to premium of 45.7%
▪ Highly attractive purchase price for Axel
Springer stake of €286.1m1, corresponding
to 15x EV/EBITDA (2017)
▪ Closing of aufeminin sale
as of end of April, 2018
1) Final purchase price of €291.5m includes customary interest rate payments
since signing in December 2017.
Transaction history and rationale
▪ 2007
▪ Acquisition of majority stake of▪ One of the first digital investments of
Axel Springer
▪ 2007 to 2016
▪ High value added through our network –Strong growth and international expansion
▪ Additionally supported through add-onacquisitions
▪ 2017 – entering the next growth phase▪ Sale to TF1 enables next step in aufeminin‘s
development
Marketing Media91
Merger of AWIN and affilinet strengthens competitive
position in Europe
Two leadingperformance
marketingnetworks havejoined forces to
drive futuregrowth and innovation
The leading European performance marketing network,
present in 13 countries with 6,000 advertisers
A leading European performance marketing network,
present in 7 countries with 3,500 advertisers
▪ Transaction closed in October 2017, IPO envisaged after period of integration
▪ Holding structure: 80% Axel Springer, 20% United Internet
Further information
▪ Sustainability Report is published every two years
(available on corporate website)
▪ Comprehensive information on corporate governance
as well as responsibility and sustainability are
available on corporate website
▪ Participation in relevant ESG / SRI ratings
Axel Springer delivers constantly and successfully
on ESG issues
Company presentation93
Overview
Rating / evaluation Last review
CDP D (from A to D-) 2017
FTSE4Good 3.8 out of 5 2018
ISS Environment
QualityScore
3 out of 10
(the lower, the better)01/2019
ISS Governance
QualityScore
3 out of 10
(the lower, the better)01/2019
ISS Social
QualityScore
2 out of 10
(the lower, the better)01/2019
ISS-oekom C+ (from A+ to D-) 2019
MSCI1 A (from AAA to CCC) 2018
Sustainalytics 68 out of 100 20171) In 2018 , Axel Springer SE received a rating of A (on a
scale of AAA-CCC) in the MSCI ESG Ratings assessment.
High transparency regarding ESG issues
Investor Relations contacts
Company presentation94
Claudia Thomé
Co-Head of Investor Relations
Phone: +49 30 2591 77421
Mobile: +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 77425
Mobile: +49 151 52844459