G R O U P K E Y D ATA
1
Q1 – 3/2004in d million
1) Q1 – 3/2003in d million
1) Change in %
Sales 1 831.2 1 788.8 2.4
Profit
EBITA 2) 261.8 163.7 59.9
EBITA margin in % 14.3 9.2
DVFA/SG income 133.3 61.4 117.1
Net income 126.1 106.2 18.7
Cash flow from operating activities 202.5 258.5 – 21.7
Capital expenditure 89.2 115.2 – 22.6
Balance sheet total 3) 2 312.8 2 182.8 6.0
Share in c
DVFA/SG earnings per share 4) 4.36 1.81 140.9
Closing price 5) 88.20 54.50 61.8
Number of employees
Average 11 417 11 740 – 2.8
1) Q1 – 3: January 1 to September 302) Result before taxes, interest and goodwill amortisation, adjusted for extraordinary items3) As of September 30, 2004 and December 31, 20034) Calculation basis: 30.6 million shares in Q1 – 3/2004 (excluding own shares), 34.0 million shares in Q1 – 3/20035) As of September 30, 2004 and September 30, 2003
EBITA/EBITA margin (Q1 – 3)
in c million
300
250
200
150
100
5020042003
9.2%
14.3%
DVFA/SG income (Q1 – 3)
in c million
180
150
120
90
60
3020042003
1.81 c
4.36 c
DVFA/SG income
DVFA/SG earnings per share
1
EBITA
EBITA margin
2
Retail press markets continue to declineOngoing weak demand cut across all industries. In the retail
sector, the expected stabilization of demand did not materialize.
Net paid circulation for newspapers and magazines declined
by 3%. Across the industry, press sales were down 1%.
With 380 daily and Sunday newspapers registered with the
circulation organization IVW, total sales declined year-on-year
in the first three quarters to 26.2 million copies. This was a
decline of 2.4% against the first three quarters of 2003. News-
stand sales lost 4.7%, subscriptions declined by 1.9%.
The number of general-interest titles registered with IVW
increased by 13 to 822. In the first nine months, total IVW
sales at 124.7 million copies per issue receded by 0.3% year-
on-year. Newsstand sales dropped by 2.5% while subscriptions
developed stable (+0.3%). This includes circulation in member-
ship magazines.
While in the newspaper market new accents were set primarily
for young readers with launches of inexpensive titles in tabloid
format, predatory competition continued via the low copy
prices for weekly women’s press and TV guides. In the
Electronics/Entertainment segment, imitation products with
lower prices began to push onto the market for the first time.
In the first nine months of the 2004 financial year, Axel Springer improved earnings before interest, tax and amortisation (EBITA) from d 163.7 million in the pre-vious year to d 261.8 million. The net income for the period increased from d 106.2 million to d 126.1 million. The conclusion of a settlement agreement in the con-text of the insolvency scheme process at Taurus TV GmbH (Kirch settlement) contributed d 92.6 million to EBITA and d 62.3 million to net income. Net income of the previous year was impacted by non-recurring effects from company disposals. In the first nine months, sales increased by 2.4% year-on-year. Both circulation and advertising revenues increased. On the basis of ongoing success in the introduction of new newspapers and magazines combined with further cost cutting effects and the result of the first nine months, the Management Board continues to expect that sales and EBITA for the whole of the 2004 financial year will be higher than 2003, even before adjustment for the Kirch settlement.
ECONOMIC ENVIRONMENT
For the first nine months of the year, the leading economic
institutes estimate real growth of 1.6% against the comparable
period of the previous year. In the same period, private con-
sumption declined by 0.3%. Consumer demand is still nega-
tively impacted by lower employment figures. For the first
nine months, the inflation rate was 1.6%.
Continuing stability in the advertising marketAccording to Nielsen Media Research, gross advertising sales
of classical media in the first nine months of 2004 (excluding
classified ads) posted 5.8% growth year-on-year. Gross advert-
ising investment of brand and service companies and large
retailers (including media advertisement) totaled a 12.7 billion.
However, decisive in business terms is the decisive net devel-
opment. Here the trend was considerably less favorable. This
was due to ongoing pressure on conditions. The classified ads
market in particular, a central source of income for subscriber
newspapers, experienced further decline in the family, travel
and jobs vacancies market.
I N T E R I M R E P O RTAxel Springer Group
BUSINESS DEVELOPMENT
In the first nine months, Axel Springer increased EBITA from
a 163.7 million to a 261.8 million. Net income increased from
a 106.2 million to a 126.1 million. The conclusion of a
settlement agreement in the context of the insolvency scheme
process at Taurus TV GmbH contributed a 92.6 million to
EBITA and a 62.3 million to net income. The prior-year figure
was influenced by extraordinary earnings from company dis-
posals.
In the first nine months, the company generated a 2.4% year-
on-year sales increase, with both circulation and advertising
revenues moving up. Ongoing cost management in the core
business offset the start-up losses of new titles.
Axel Springer continues to launch new titles. In Germany
the company launched the fortnightly TV guide TV DIGITAL
in March. In September the finance magazine FONDS&CO,
the literary magazine DER FREUND and the classified ads
newspaper AUTOBILD.DE-AUTOMARKT was started.
FAKT, the Polish daily started in October 2003, has established
itself as the largest daily newspaper in the country with more
than 3 million readers. In October 2003, Axel Springer launched
REGGEL, the first modern quality newspaper for the Budapest
area. In the third quarter, Axel Springer Budapest launched
two new magazines, AUTO BILD and GLAMOUR. The Rus-
sian subsidiary Axel Springer Russia introduced also two
new titles with FORBES RUSSIA and RUSSKIJ NEWS-
WEEK. The RPG (Romanian Publishing Group), in which
Axel Springer has a 40% stake, launched the women‘s maga-
zine SANA in Rumania.
Axel Springer expanded the international licensing business.
With five new licensed editions this year (Estonia, Finland,
Slovakia, Latvia, Thailand), AUTO BILD is the fastest growing
international licensed title. In September, COMPUTER BILD
started with a new offshoot in Lithuania.
The women’s magazine ALLEGRA, the TV guide TV MÜSOR
in Hungary and the car magazine AUTO SUKCES in Poland
were discontinued.
The construction of the new office and business premises in
Berlin was concluded as scheduled. The process of bundling
central group management and service functions at the main
office in Berlin with the objective of achieving further improve-
ments in efficiency was successfully completed in the first
half of the year.
NewspapersIn the reporting period, BILD considerably expanded advertising
revenues with brand companies and the retail business as well
as with advertising cooperations. BILD reached an average
circulation of 3.8 million copies.
With a revised contents and optical concept, BILD am SONNTAG
has offered more topicality, service and sport since August.
The main part of the newspaper has been extended from 48
to 64 pages, 8 of which are devoted to more sports reporting.
The positive trend in the advertisement and insert business at
BILD am SONNTAG continued.
Newspapers in Germany
Net paid circulation, IVW, average Q1 to Q3 2004
BILD 3 843 451
BILD am SONNTAG 2 102 010
DIE WELT 203 914
WELT am SONNTAG 403 114
HAMBURGER ABENDBLATT 278 406
BERLINER MORGENPOST 151 721
B.Z. 230 577
B.Z. am SONNTAG 129 867
EURO am SONNTAG 109 510
3
WELT and WELT am SONNTAG kept advertising revenues
stable in the first nine months. Since August, WELT am
SONNTAG has had a new modern layout, with a revised
structure and new contents. After successful trials in Berlin
and Frankfurt am Main, the launch of WELT KOMPAKT was
continued across Germany with extension of the distribution
to Munich, Dusseldorf and parts of the Ruhr area. WELT
KOMPAKT is the first regional quality newspaper in Germany
in the compact tabloid format and the third national news-
paper founded in the last 50 years.
The restraint of the advertising market in the first nine months
of the financial year was also felt in Berlin at the BERLINER
MORGENPOST and B.Z./B.Z. am SONNTAG. With modestly
positive signals from the retail sector and the property markets,
the two newspapers asserted their market position.
With net paid circulation of 278 000, the HAMBURGER
ABENDBLATT developed more positively than the overall
market of regional newspapers. In both the retail and advertising
market, the company defended its leading position in the
Hamburg region.
Retroactive to January 1, 2004, Axel Springer has aquired
a 14.5% share in Westfalen-Blatt Zeitungsverlage GmbH, one
of the largest regional newspapers in North Rhine-Westphalia.
MagazinesAxel Springer successfully continued its expansion process in
Germany and abroad. The fortnightly TV guide TV DIGITAL,
launched in March, established itself as the quality magazine
for digital television. Circulation improved steadily with net
paid circulation averaging 1.2 million copies, while the estab-
lished TV magazines had lower net paid circulation in the first
nine months than the comparable period of the previous year.
Magazines in Germany
Net paid circulation, IVW, average Q1 to Q3 2004
HÖRZU 1 729 111
TV DIGITAL1) 1 040 811
FUNK UHR 927 994
BILDWOCHE 321 248
TV NEU 296 346
BILD der FRAU 1 273 904
FRAU von HEUTE 483 021
JOLIE 331 785
JOURNAL für die FRAU 305 149
COMPUTER BILD 841 362
COMPUTER BILD SPIELE 622 816
AUDIO VIDEO FOTO BILD 531 474
AUTO BILD 680 700
AUTOMOBIL TESTS 98 738
AUTO BILD MOTORSPORT 67 981
AUTO BILD ALLES ALLRAD 68 442
AUTO BILD TEST & TUNING 57 186
SPORT BILD 490 977
MAXIM 245 374
POPCORN 323 936
YAM! 251 660
MÄDCHEN 214 248
STARFLASH 117 869
ROLLING STONE 60 360
MUSIKEXPRESS 59 817
METAL HAMMER 48 955
FINANZEN 112 071
1) Included since the 2nd quarter of 2004
4
5
InternationalThe Polish daily FAKT was launched by Axel Springer in
October 2003. In just short time, it has firmly established
itself as the country‘s largest daily newspaper with more than
500,000 copies sold and reaching around 3 million readers.
The new market segment of fortnightly TV guides has been
established in France since the beginning of the year. As a
result, competition has considerably intensified on the market
for TV guides, in which Axel Springer is represented by TÉLÉ
MAGAZINE.
With FORBES RUSSIA and RUSSKIJ NEWSWEEK the
Russian subsidiary Axel Springer Russia launched two new
magazines.
In October 2004, Axel Springer launched REGGEL, the first
modern quality newspaper for the Budapest area. REGGEL
is the ninth daily published by Axel Springer in Hungary.
The printing house in Keckemet was extended, being equipped
for the additional requirements of the new daily REGGEL.
In September, Axel Springer Budapest launched the twenty-
third AUTO BILD and the monthly women’s magazine
GLAMOUR in a licensed edition.
Axel Springer extended its international licensing business
with five further licensed editions of AUTO BILD (Estonia,
Finland, Slovakia, Latvia, Thailand) and a new edition of
COMPUTER BILD in Lithuania. In Lithuania the licensee
is Veidas Periodical Publishing. COMPUTER BILD already
appears in Poland, Spain and the Czech Republic.
The titles AUTO SUKCES in Poland and TV MÜSOR in
Hungary were discontinued.
For accessing new markets in Asia, Axel Springer founded a
representative office China based in Shanghai.
In the fiercely contested market of women’s magazines, BILD
der FRAU defended its market leadership in a commanding
fashion. According to the Media-Analyse 2004/II, BILD der
FRAU reached a total of 5.5 million readers. The new monthly
women’s magazine JOLIE further improved its circulation,
creating a new high of over 365 000 net paid copies in the
third quarter. Due to the ongoing difficult market situation,
the monthly Women’s magazine ALLEGRA was discontinued.
In the first nine months of the year, COMPUTER BILD
increased its circulation year-on-year by 1.7% to over 841 000
copies. COMPUTER BILD thus confirmed its undisputed
market leadership in the European computer magazine
market.
AUDIO VIDEO FOTO BILD, launched in December 2003,
has developed in a very positive way. Over the year it averaged
circulation of more than 531 000 net paid copies, becoming
the consumer electronic magazine market leader by a large
margin.
AUTO BILD remains by far the largest car magazine in
Germany. For its excellent brand management it was awarded
the title „Superbrand”. An independent jury of experts made
up of leading personalities selected the 46 best and strongest
brands in Germany from a range of 700 brand names submitted.
Since September, the fortnightly classified ads magazine
AUTOBILD.DE-AUTOMARKT with a printed circulation
exceeding 200 000 is being supplemented with the internet
portal AUTOBILD.DE. The magazine is publishing offers for
more than 5 000 used cars on over 150 pages.
The Munich-based Verlag Finanzen is publishing the new
quarterly financial magazine FONDS & CO.
Since September 2004, Axel Springer has launched the quarterly
literary magazine DER FREUND. The magazine deliberately
does not use photos and advertising.
6
FINANCIAL SITUATION
SalesIn the first nine months of the year, Axel Springer generated
a sales increase from a 1 788.8 million to a 1 831.2 million
(+ 2.4%).
Advertising revenues rose by a 22.9 million (+ 3.3%) to reach
a 708.9 million. Circulation revenues moved up by a 24.9 mil-
lion (+ 2.9%) to a 892.9 million. At a 229.4 Miscellaneous
sales million were down slightly year-on-year (– 2.3%). Sales
generated outside of Germany increased from a 248.0 mil-
lion by a 19.1 million (+ 7.7%) to a 267.1 million. Thus, the
share of sales generated abroad rose from 13.9% to 14.6%.
Newspaper sales rose by a 45.0 million (+ 4.5%) to a 1 048.3 mil-
lion in the first nine months of the year. Advertising revenues
rose by a 26.9 million (+ 5.4%) to a 520.6 million. In particular,
BILD and BILD am SONNTAG contributed to this positive
development. At a 527.7 million circulation revenues for news-
papers were up a 18.1 million (+ 3.6%) year-on-year. This is
primarily due to the effect of price increases introduced at BILD
and HAMBURGER ABENDBLATT to the middle of 2003.
In the first nine months magazine sales, at a 553.5 million,
were up slightly year-on-year (+ 0.5%). At a 188.3 million,
advertising revenues were down a 4.0 million (– 2.1%) on
the previous year. While new titles and the car and computer
magazines developed well, traditional TV guides and women‘s
magazines found themselves under earnings pressure. At
a 365.2 million, circulation revenues were up a 6.8 million
(+ 1.9%) on the previous year. In addition to the positive
development at COMPUTER BILD, this growth was primarily
driven by the launch of the new AUDIO VIDEO FOTO BILD,
TV DIGITAL and FRAU von HEUTE titles.
Electronic MediaWith a 49.9% stake in the online jobs portal StepStone
Deutschland AG, Axel Springer is commencing a strategic
alliance for marketing national and regional job advertise-
ment. After the successful development of IMMONET and
AUTOBILD.DE, the investment in StepStone is a decisive
strategic supplement of the online classified ads business in
the third key segment of jobs. The stake in StepStone Deutsch-
land AG is still subject to approval for the Federal Cartel Office.
In the first nine months of the year, IMMONET with average
real estate offers of over 210 000 has firmly established itself
as one of the leading real estate portals. With some 650 000
being offers, AUTOBILD. DE, the internet portal belonging
to the AUTOBILD group is one of the largest automobile
markets in the internet. For strengthening the competence in
classified ads, the B.Z. has been integrated into the AUTO-
BILD.DE internet portal.
In the first nine months of the year, the reporting highlights for
BILD.T-ONLINE were the European Championships (soccer)
and the Olympic Games. With 244 million page impressions
in September, BILD.T-ONLINE consolidated its position as a
leading cross-media general-interest portal. Sales were extended
considerably, both for online advertising as well as with cross-
media cooperations and the so-called Volk products.
Printing and LogisticsAfter successful negotiations, in September Arvato and
Gruner+Jahr and Axel Springer signed a letter of intent
for combining their five German gravure printing operations.
It was also agreed to include the printing operation which is
being built by Arvato in Liverpool, England. The project is
still subject to the approval of the supervisory bodies and
the anti-trust authorities.
In the first nine months of 2004, the contract printing volume
for offset and gravure printing rose year-on-year, despite the
continuing weakness of the economy.
Logistics and Distribution supported the establishment of new
distribution channels to better align them to consumer flows.
7
At a 44.8 million sales for Electronic Media declined year-
on-year by a 6.5 million (– 12.7%). External Printing sales
increased by a 5.2 million (+ 5.5%) auf a 100.3 million. At
a 84.3 million Other revenues were a 4.1 million (– 4.6%)
down year-on-year.
ProfitIn the first nine months, Axel Springer increased EBITA
(adjusted for extraordinary items) from a 163.7 million to
a 261.8 million. The net income for the period increased
from a 106.2 million to a 126.1 million. The conclusion
of the settlement agreement in the context of the insolvency
scheme process at Taurus TV GmbH contributed a 92.6 mil-
lion to EBITA and a 62.3 million to the net income for the
period.
The prior-year value was influenced by extraordinary earnings
from company disposals. DVFA/SG income rose from a 61.4 mil-
lion to a 133.3 million.
The improved results are due – apart from the non-recurring
income as a result of the settlement agreement – to higher
sales and ongoing cost management. This was countered by
the start-up costs of the expansion process, which negatively
impacted EBITA particularly in the magazine segment.
Total expenses (before taxes and goodwill amortisation)
rose at a level slightly below that of sales, by a 35.6 million
(+ 2.1%) to a 1 755.0 million.
Sales by sectorsQ3/2004
in d million
1) Q3/2003in d million
1) Changein %
Q1 – 3/2004in d million
2) Q1 – 3/2003in d million
2) Changein %
Circulation 307.4 300.7 2.2 892.9 868.0 2.9
Advertising 213.4 206.6 3.3 708.9 686.0 3.3
Miscellaneous 78.0 81.6 – 4.4 229.4 234.8 – 2.3
Total 598.8 588.9 1.7 1 831.2 1 788.8 2.4
Sales by segmentsQ3/2004
in d million
1) Q3/2003in d million
1) Changein %
Q1 – 3/2004in d million
2) Q1 – 3/2003in d million
2) Changein %
Newspapers 341.3 329.7 3.5 1 048.3 1 003.3 4.5
Magazines 179.5 177.6 1.1 553.5 550.7 0.5
Printing 37.5 32.4 15.7 100.3 95.1 5.5
Electronic Media 13.0 22.4 – 41.9 44.8 51.3 – 12.7
Other revenues 27.5 26.8 2.5 84.3 88.4 – 4.6
Total 598.8 588.9 1.7 1 831.2 1 788.8 2.4
1) Q3: 3rd quarter2) Q1 – 3: January 1 to September 30
8
Capital expenditureIn the first nine months, Axel Springer invested a 89.2 million
after a 115.2 million in the previous year. a 79.8 million of
capital expenditure (previous year: a 110.3 million) related
primarily to tangible and intangible assets. Capital expenditure
focused on the extension of the offset printing facility in
Ahrensburg, the construction of the new Berlin office and
business premises, and the subscribers to TV DIGITAL, the
TV guide launched in March.
Capital expenditure on financial assets amounted to a 9.4 mil-
lion (previous year: a 4.9 million). The financial assets
position on the balance sheet is also impacted by the reclas-
sification of SAT.1 Beteiligungs GmbH from current asset
to fixed asset and increasing the stake in the context of the
Kirch settlement.
Depreciation and amortisation (without goodwill amortisation)
amounted to a 65.6 million (previous year: a 59.6 million).
Net liquidityThe total of the cash flows from operating, investment and
financing activities increased liquid funds by a 80.8 million
As of September 30, 2004, funds (liquid funds and securities
in current assets) amounted to a 380.1 million. With bank
loans liabilities of a 192.6 million, Axel Springer closed the
third quarter of 2004 with net liquidity of a 187.5 million.
As of December 2003, net liquidity was a 99.4 million.
EMPLOYEES
In the first nine months of 2004, Axel Springer employed
an average staff of 11 417 people (not including trainees
and interns), 323 fewer than in the prior-year period. As
of October 1, 2004 the number of employees was 11 392
(previous year: 11 684).
SHARE
The price of Axel Springer shares at the beginning of the year
was a 70.00. During the course of the year, the share outper-
formed the MDAX and closed at a 88.20 (previous year:
a 54.50) on September 30, 2004.
In the first three quarters of the year, DVFA/SG net income
per share was a 4.36 after a 1.81 in the previous year. In the
third quarter, DVFA/SG net income per share was a 2.35
(previous year: a 0.44).
As at September 30, 2004 Axel Springer bundled share
trading on the Frankfurt stock exchange in order to con-
centrate trading at the location with the highest liquidity.
130
125
120
115
110
105
100
95
Share performance
Index January 2, 2004 = 100
Axel Springer AG
MDAX
January 04 September 04June 04
95
100
105
110
115
120
125
130
35
40
45
50
55
60
65
70
75
80
9
ANNUAL SHAREHOLDERS‘ MEETING 2004
On April 14, 2004, the Annual Shareholders’ Meeting of
Axel Springer AG voted Prof. Dr. Lepenies into the Supervisory
Board. Dr. Joachim Theye has left the Supervisory Board. The
other members of the Supervisory Board were reelected.
Furthermore, with a majority of 99.9% the Annual Shareholders’
Meeting resolved a participation program in the context of
authorization to acquire and utilize own shares (Item 7 on
the agenda).
The detailed description of the management participation
program can be found on the Company‘s Internet site at
www.axel-springer.de/InvestorRelations/Shareholders’Meeting.
A rescind action has been filed against the resolution made
by the Annual Shareholders’ Meeting 2004 on Item 7 of the
agenda. The rescind action was rejected by the Berlin District
Court on September 27, 2004. The verdict is not yet final.
In the context of management participation program and the
conditions resolved at the Annual Shareholders’ Meeting on
April 14, 2004, from August 16, 2004, Axel Springer AG
sold 62 300 shares at a price of a 54.00 per share plus 2%
p.a. from July 1, 2004, i.e. a 54.13 per share to members of
the Management Board.
MANAGEMENT BOARD CHANGE
Hubertus Meyer-Burckhardt, Head of Electronic Media,
left the company by the end of June 2004 and was appointed
as the Management Board member for Corporate Develop-
ment of ProSiebenSat.1 Media AG with effect from July 1,
2004. The Management Board position has not been refilled.
As a result this body has been reduced to four members. The
Electronic Media division is now allocated to the Management
Board member for Newspapers and International. The produc-
tion and marketing of digital programming remains the core
component of corporate strategy and will be further expanded.
EVENTS OF PARTICULAR SIGNIFICANCE
Within the context of the insolvency scheme process of
Taurus TV GmbH i. I., a settlement arrangement was concluded
between Axel Springer AG, Taurus TV GmbH i. I., KirchMedia
GmbH & Co. KGaA i. I. and other parties. Under the settlement
arrangement, Axel Springer AG agrees to waive its rights arising
from the put option claim which is in dispute between the
parties involved. In return, Axel Springer AG will retain its
indirect holding in ProSiebenSAT.1 Media AG of 10.2%, will
increase this by 1.8% with no financial consideration, and will
receive from Taurus TV GmbH i. I. a payment of a 60.3 million.
Overall, the settlement impacted EBITA for the nine months
by a 92.6 million and net income of the period by a 62.3 milli-
on. In addition, the insolvency administrator of KirchMedia
GmbH & Co. KGaA i. I. will recognize a claim in the schedule
of debts in an amount of a 325 million in favor of Axel Springer
AG. The claim will be taken into account in the further insol-
vency proceedings.
OUTLOOK
The Fall Report of the leading German economic research
companies anticipates economic growth for 2004 of 1.8%. In
the course of the rest of 2004, the growth is to be carried by
the global economic upswing, while private consumption is
expected to stagnate (0.0%). According to the Fall Report, the
export boom is set to weaken considerably in the second half
of the year.
Despite the upturn in advertising revenues in the first nine
months of the year, a sustained recovery is not expected on
the advertising market. No real market recovery is expected in
2005. There is no short-term recovery in sight for classified ads.
On the basis of ongoing success in the introduction of new
newspapers and magazines combined with further cost cutting
effects and the result of the first nine months, the Management
Board continues to expect that sales and EBITA for the whole
of the 2004 financial year will be higher than 2003, even
before adjustment for the Kirch settlement.
10
I N T E R I M F I N A N C I A L S TAT E M E N T SC O N S O L I D AT E D B A L A N C E S H E E T S
Assets Sept. 30, 2004in d’000
Dec. 31, 2003in d’000
A. Fixed assets
I. Intangible assets 158 475 161 160
II. Tangible assets 1 041 337 1 034 565
III. Financial assets 178 422 88 785
1 378 234 1 284 510
B. Current assets
I. Inventories 54 799 50 341
II. Accounts receivable and other assets 303 434 356 940
III. Securities 1) 185 516 189 104
IV. Cash and cash equivalents 375 777 294 807
919 526 891 192
C. Prepaid expenses 15 047 7 081
2 312 807 2 182 783
Stockholders’ equity and liabilities Sept. 30, 2004in d’000
Dec. 31, 2003in d’000
A. Stockholders’ equity
I. Subscribed capital 102 000 102 000
II. Revenue reserves 663 217 618 967
III. Consolidated retained earnings 0 80 891
IV. Consolidated net income 124 034 0
V. Minority interests 4 976 5 794
894 227 807 652
B. Provisions 903 468 826 983
C. Liabilities 450 823 490 712
D. Deferred income 64 289 57 436
2 312 807 2 182 783
1) Includes own shares of c 181.2 million
11
C O N S O L I D AT E D I N C O M E S TAT E M E N T S
Q3/2004in d’000
1) Q3/2003in d’000
1) Q1 – 3/2004in d’000
2) Q1 – 3/2003in d’000
2)
1. Sales 598 790 588 921 1 831 151 1 788 807
2. Change in inventories of finished goodsand work in progress 4 744 5 587 4 266 2 121
3. Other operating income 107 975 14 170 140 479 105 501
4. Cost of materials – 189 787 – 184 934 – 559 608 – 543 838
5. Gross profit 521 722 423 744 1 416 288 1 352 591
6. Personnel costs – 199 903 – 210 133 – 590 181 – 603 388
7. Depreciation/amortisation of intangibleand tangible assets – 26 959 – 26 284 – 82 376 – 93 202
8. Other operating expenses – 179 970 – 155 602 – 530 495 – 507 293
9. Income from equity holdings 8 140 6 083 22 281 19 284
10. Net interest balance – 670 1 649 – 3 330 2 277
11. Depreciation of financial assets andmarketable securities – 161 – 70 – 161 – 70
12. Group income from operations 122 199 39 387 232 026 170 199
13. Taxes – 50 677 – 23 310 – 105 946 – 63 950
14. Consolidated net income 71 522 16 077 126 080 106 249
thereof earnings attributable to minority shareholders 1 313 112 2 046 – 156
EBITA reconciliation
Income from operations 122 199 39 387 232 026 170 199
Net interest balance 670 – 1 649 3 330 – 2 277
Goodwill amortisation 4 343 6 931 16 783 33 574
EBITA including extraordinary items 127 212 44 669 252 139 201 496
Extraordinary items – 271 – 77 9 653 – 37 826
Adjusted EBITA 126 941 44 592 261 792 163 670
1) Q3: 3rd quarter2) Q1 – 3: Januar 1 to September 30
12
C O N S O L I D AT E D S TAT E M E N T S O F C A S H F L O W
Q1 – 3/2004in d’000
1) Q1 – 3/2003in d’000
1)
Consolidated net income 126 080 106 249
Depreciation/appreciation of fixed assets 82 301 93 272
Change in provisions 78 544 62 282
Other expenses/income with no cash effect – 32 810 0
Income/loss from the disposal of fixed assets 3 077 – 50 881
Changes in inventories, receivables and other assets 2 222 68 431
Change of other borrowed funds – 56 942 – 20 845
Cash flow from operating activities 202 472 258 508
Outflow for capital expenditure on fixed assets – 89 162 – 115 188
Inflow from the sale of consolidated companies 10 000 65 052
Cash flow from investment activities – 79 162 – 50 136
Change in financial liabilities – 7 381 4 419
Dividends paid – 38 481 – 25 655
Other changes 3 364 2 627
Cash flow from financing activities – 42 498 – 18 609
Total cash flow 80 812 189 763
Funds on September 30, 2004 380 072
Funds on January 1, 2004 – 299 326
+/– Changes in funds due to differences in the companies consolidated 66
Changes in funds with cash effects 80 812
1) Q1 – 3: January 1 to September 30
In the statements of cash flow the payment flows are divided into the areas of operating, investment and financing activities.
As company liquidity, other securities in current assets and cash and cash equivalents are included in funds.
13
Q3 1)
in d million
Newspapers Magazines PrintingElectronic
MediaOther/
Consolidation Total
2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003
External sales 341.3 329.7 179.5 177.6 37.5 32.4 13.0 22.4 27.5 26.8 598.8 588.9
Internal sales 3.6 5.4 0.8 0.5 115.5 112.5 1.6 0.5 2.2 1.6
Segment sales 344.9 335.1 180.3 178.1 153.0 144.9 14.6 22.9 29.7 28.4
Sales in Germany 314.2 314.0 137.1 129.9 143.1 137.7 14.5 22.8 25.8 25.6
Sales outside Germany 30.7 21.1 43.2 48.2 9.9 7.2 0.1 0.1 3.9 2.8
Segment sales 344.9 335.1 180.3 178.1 153.0 144.9 14.6 22.9 29.7 28.4
EBITA 48.7 42.8 – 6.6 5.9 0.5 0.5 86.1 – 2.9 – 1.8 – 2.1 126.9 44.2
of which depreciation – 7.2 – 4.5 – 3.6 – 2.5 – 10.8 – 8.3 – 0.7 – 0.6
of which incomefrom equity holdings 2.5 2.3 1.3 2.0 0.5 0.4 1.0 0.8
Employees (average) 5 145 5 169 2 888 2 841 2 482 2 644 285 350
G R O U P S E G M E N T R E P O RT
Q1 – 3 2)
in d million
Newspapers Magazines PrintingElectronic
MediaOther/
Consolidation Total
2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003
External sales 1 048.3 1 003.3 553.5 550.7 100.3 95.1 44.8 51.3 84.3 88.4 1 831.2 1 788.8
Internal sales 8.0 9.4 1.6 1.3 348.6 341.9 4.1 2.0 7.7 5.6
Segment sales 1 056.3 1 012.7 555.1 552.0 448.9 437.0 48.9 53.3 92.0 94.0
Sales in Germany 969.6 951.4 414.5 405.5 421.3 409.2 48.3 53.0 80.3 81.9
Sales outside Germany 86.7 61.3 140.6 146.5 27.6 27.8 0.6 0.3 11.7 12.1
Segment sales 1 056.3 1 012.7 555.1 552.0 448.9 437.0 48.9 53.3 92.0 94.0
EBITA 165.2 123.9 8.3 40.6 1.5 1.2 87.3 – 3.6 – 0.5 1.6 261.8 163.7
of whichdepreciation – 21.4 – 21.5 – 9.5 – 9.5 – 30.3 – 25.1 – 3.5 – 2.6
of which incomefrom equity holdings 7.0 7.0 5.5 5.8 1.5 1.3 4.2 3.6
Employees (average) 5 121 5 209 2 881 2 819 2 502 2 659 324 360
1) Q3: 3rd quarter 2) Q1 – 3: January 1 to September 30
EBITA (Earnings before Interest, Taxes and Amortisation) is used for division sales.
14
Parent company Minority interests
Subscribed
capital
Generated
Group equity
Accumulated other
comprehensive income
in e’000
Ordinary shares Adjustment item
from currency
translation
Adjustment from
initial application
of the German
Transparency and
Disclosure Act Equity
Minority
capital
Adjustment item
for currency
translation Equity Group equity
December 31, 2003 102 000 426 718 – 3 334 276 474 801 858 5 976 – 182 5 794 807 652
Dividends paid 0 – 36 720 0 0 – 36 720 – 1 761 0 – 1 761 – 38 481
Miscellaneous
changes 0 0 79 0 79 – 1 103 0 – 1 103 – 1 024
Net income
for the period 0 124 034 0 0 124 034 2 046 0 2 046 126 080
September 30, 2004 102 000 514 032 – 3 255 276 474 889 251 5 158 – 182 4 976 894 227
Parent company Minority interests
Subscribed
capital
Generated
Group equity
Accumulated other
comprehensive income
in e’000
Ordinary shares Adjustment item
from currency
translation
Adjustment from
initial application
of the German
Transparency and
Disclosure Act Equity
Minority
capital
Adjustment item
for currency
translation Equity Group equity
December 31, 2002 102 000 319 527 – 653 0 420 874 6 333 – 135 6 198 427 072
Dividends paid 0 – 22 100 0 0 – 22 100 – 3 555 0 – 3 555 – 25 655
Revaluation
of fixed assets 0 0 0 276 474 276 474 0 0 0 276 474
Miscellaneous
changes 0 0 – 311 0 – 311 2 656 – 29 2 627 2 316
Net income
for the period 0 106 405 0 0 106 405 – 156 0 – 156 106 249
September 30, 2003 102 000 403 832 – 964 276 474 781 342 5 278 – 164 5 114 786 456
C O N S O L I D AT E D S TAT E M E N T S O F S T O C K H O L D E R S ’ E Q U I T Y
15
EXPLANATORY NOTES TO THE INTERIM FINANCIAL STATEMENTS
Axel Springer Group
General notesThe interim report on the period between January and September 2004 was prepared in line with the German Accounting
Standard No. 6 (DRS 6) – Interim Reporting – of the German Accounting Standards Committee e. V. (DRSC).
The accounting and valuation methods used for the interim financial statements as of September 30, 2004 correspond to those
used in the consolidated financial statements as of December 31, 2003.
Consolidated companiesIn the consolidated financial statements as of September 30, 2004, 35 German and 17 foreign companies were included in
consolidation, in addition to Axel Springer AG. Thereof, four joint ventures were consolidated on a pro rata basis.
Following the transfer of its orders to Axel Springer AG, GMZ Druckerei GmbH & Co. was deconsolidated and discontinued
with effect of January 1, 2004, since the business was transferred to Axel Springer AG. AS Media Service GmbH was transferred
to Ullstein GmbH.
Berlin, November 2004
Axel Springer AG
The Management Board
Report of the Supervisory Board Audit CommitteeThe interim report for the period January to September 2004 and the report of the auditor on the audit examination of the
interim financial statements were submitted to the Supervisory Board Audit Committee. The documents were explained by
the Management Board and discussed with the auditor. The Audit Committee approved the interim financial statements.
Berlin, November 2004
Chairman of the Audit Committee
Dr. Giuseppe Vita
DisclaimerThis Interim Report contains forward-looking statements with the connected risks and imponderables. The actual development
of business and profits at Axel Springer AG and the Group may deviate materially in the future from the assumptions made in
this Interim Report. This Interim Report represents neither an offer for sale nor the request to submit an offer for the securities
of Axel Springer AG. The publication of this Interim Report does not bring with it an obligation to update the statements
made in it.
16
Financial calendar
Annual Results Press Conference March 9, 2005
Annual shareholders’ meeting April 20, 2005
Interim Report January – March 2005 May 2005
Interim Report January – June 2005 August 2005
Interim Report January – September 2005 November 2005
Share information Q1 – 3/2004in d
1) Q1 – 3/2003in d
1)
DVFA/SG earnings per share 2) 4.36 1.81
Closing price 3) 88.20 54.50
Highest price 91.00 63.00
Lowest price 70.00 41.00
Average price 84.36 48.05
Listing segment General Standard
Security identification number 550 135
ISIN DE0005501357
Reuters SPRGn.F
Bloomberg SPR GR
1) Q1 – 3: January 1 to September 302) Calculation basis: 34.0 million shares in Q1 – 3/2003; 30.6 million shares
in Q1 – 3/2004 (excluding own shares) 3) As of September 30, 2004 and September 30, 2003
The Interim Report and current information on
Axel Springer AG are available on the Internet:
www.axelspringer.de
This Interim Report is also available in German.
For more information on the Interim Report,
please contact:
Axel Springer AG
Investor Relations
e-mail: [email protected]
Axel-Springer-Straße 65
10888 Berlin
Telephone: + 49 (0) 30 25 91-7 74 20/7 74 21
Fax: + 49 (0) 30 25 91-7 74 22