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Advertising with Axel Springer –One face to the customer withGermany's leading media brandsCapital Markets Day

Peter Würtenberger, Chief Marketing OfficerBerlin, October 6, 2008

October 6, 2008 Capital Markets Day2

Agenda

1 Unique size and the power of all titles.

2 At eye-level with media agencies – ready to attack TV budgets!

3 One face to the customer.

4 The power of innovation.


Agenda






Three strong brand units at Axel Springer:BILD group, magazines and WELT group …

BILD group Magazines

etc.

WELT group


… are now merged under the roofof one marketer.

Axel Springer Media Impact

etc.


Size matters!Axel Springer is Germany’s biggest print marketer. Overall we rankon no. 3 behind the biggest TV marketers IP and SevenOne.

Gross print advertising revenues 2007

1) Nielsen Media Research 2007

Axel Springer AG

Gruner + Jahr Burda Verlag Heinrich BauerVerlag

SpiegelVerlag

JahreszeitenVerlag

(in m)

1.000

800

600

400

200

0


Market power with combined reach!

In total

76m1)

contacts

Newspapers26.8m contacts1)

Magazines35.6m contacts1)

Digital media13.3m contacts1)

1) Source: MA, AWA Q1-2/2008, AGOF 2008/II


Agenda






At eye-level with the big market playersAxel Springer’s powerful positioning versus media agencies.

750

250

* RECMA Billings 2007

1.000

500

1) RECMA Billings 2007 (estimated print shares for media agencies), Nielsen Media Research 2007

Gross print advertising revenues1)

(in m)


Ready to attack TV!

Mass target group Premium target group


BILD overtops TV!BILD reach compared with Germany’s biggest TV stations.

The total daily reach of BILD/TV Ø-1/2 hour 15 – 24h, 2007

BILD ZDF ARD RTL SAT.1 ProSieben

(in m)

5.6 5.4

11.6

2.53.5

4.6


34

1612

3

3 x„Wetten, dass …?“

Our GoalShifting budgets from TV to BILD.

2000 2007TV-Formats bigger than BILD Share without sport events


Sales ModelingConvincing proof of the power of BILD.

TVBILD, BamS

x 1.64062100GranufinkProsta2005

x 3.23198100L‘Oréal2007

x 3.739145100Senseo2004

x 3.269220100Maggi2007

x 8.91)

to Benchmark

No trackable success!TV-Benchmark= 45

400BILD-NRW100Intersnack

2007

BILD/BamSvs. TV

Output € viaInput €in ad campaignProduct

New customersafter proofof concept

NestléBahlsen

IntersnackL‘Oréal

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


KW 29 30 31 32 33 34 35 36 37 38 39 KW 40

„Maggi fix“ case study:Additional sales through media activitiesBolognese Primavera

Additional salesof packages

Source: Nielsen Media Research


„Bolognese Primavera“Increased Return on Investment

Zusatzumsatz*

Spendings

Zusatzumsatz*

Spendings

Bolognese PrimaveraPrint

Bolognese PrimaveraTV

* Ø basic price € 0,65

69%

220%

106%

Additional sales*

Spendings

Additional sales*

Spendings

ROI

Source: Nielsen Media Research


Sales ModelingConvincing proof of the power of BILD.

TVBILD, BamS

x 1.64062100GranufinkProsta2005

x 3.23198100L‘Oréal2007

x 3.739145100Senseo2004

x 3.269220100Maggi2007

x 8.91)

to Benchmark

No trackable success!TV-Benchmark= 45

400BILD-NRW100Intersnack

2007

BILD/BamSvs. TV

Output € viaInput €in ad campaignProduct

New customersafter proofof concept

NestléBahlsen

IntersnackL‘Oréal

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


Agenda






"One face to the customer"! Best service for maximum customer and agency convenience.Yesterday: More than 30 contact partners for one customer

Today: "One Face to the Customer" for maximum customer convenience

Customer

Cross-mediaspecialist

Publisher management

Marketingmanagement

Sales

One central contact person who is informed about every contact to the customer and involves specialists where necessary.


Berlin

Hamburg

Hannover

Frankfurt

Stuttgart

München

Düsseldorf

► Professional competence

► Spatial proximity

► Unity of agency and customer support

Being in touch!Key Accounting with regional character.

Powerful triad of

Integratedsalesorganization

BILD WELT

Magazines


Distinct customer continuity!Low volatility of our best customers.

Gross spendings of our top six customers, 2005-2007

ACustomer

B C D E F

2005 2006 20071) Nielsen Media Research 2007


26%

71%58%33%31%26%33%22%59%29%21%22%17%20%99%25%

33%49%

15%

11%

Market shares in the national print ad sector of our top 20 customers 2007

High market shares!

ACustomer

1) Nielsen Media Research 2007,National – Only print advertisement spending

TSRQPONMLKJIHGFEDCB

Total national print media spendingAxel Springer share

Ø 35% market share


Agenda






We are the leading crossmedia playerin the market.Print newspaper Print magazines Digital media Direct mail Local TV stations

Consumer


Crossmedia sells!

Forbes – Sybase brand metricsAided brand awareness

11.2%Online

17.5%

24.2%

Print

Online & Print

Recognition on various communication channels

Effects on image throughthe combination of mediaand product branding

Source: Dynamic Logic, 2007


Exclusive booking for the launch of Golf VI

Case I BILD special edition for October 3rd

Targeted circulation3m copies

City lightscampaign

Activating BILDmobil users

Online extension BILD.de4.4m unique users1)

1) Source: AGOF 2008/II


Case IIWELT KLASSE campaign Volkswagen

Print ad Supplement

WELT ONLINE TV spots


Five strategic goals and guidelinesfor Axel Springer Media Impact

Exploitation of the unique market advantages of Axel Springer'ssize while keeping the power of the single titles – next to the bigTV marketers we rank on no 3.

Advantageof size

Reinforcement of our agency relations and pushtowards TV media budgets.

Focus onagencies

Intensification of our top customer relationships through the powerfultriad of professional competence, spatial proximity and the unity ofagency and customer support.

Proximity to customers

Germany’s most innovative marketer – titles with the highestreach combined with the power of a specialist online marketer.

Power of innovation

Realization of scale effects of market handling,brand development and backoffice processes. Efficiency

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