Company presentation August 2018 Dr Julian Deutz, CFO xxx - - PowerPoint PPT Presentation

Company presentation

August 2018 Dr Julian Deutz, CFO xxx

Disclaimer

August 2018 Company presentation 2

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.

37% 47% 14% 2%

Axel Springer at a glance

August 2018 Company presentation 3

58% 30% 12%

▪ Leading digital classifieds

• perator

▪ Leading digital publisher in Europe with unique media brands ▪ Successful transformation with 80%1 of adj. EBITDA from digital activities ▪ Organic growth supported by targeted M&A with strong track record ▪ Strong FCF, high dividend yield and payout ratio (2017: 77%)

Highlights Financials Revenues by segment1

• Adj. EBITDA by segment1,2

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 Low to mid single-digit % growth Mid to high single-digit % growth DPS (FY 2017) in € 2.00

80% of adj. EBITDA from digital activities – digital revenues with organic growth of 9.4% in H1/18

August 2018 Company presentation 4 digital

Revenues Advertising Revenues

• adj. EBITDA

digital digital

69% 85% 80%

Key messages 2017 – strong execution

August 2018 Company presentation 5

More disclosure on classifieds

▪ Strong organic revenue growth of 12.7% in FY/17, 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 ▪ Advertising revenues in German market up 1.7% in FY/17 ▪ 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 ▪ Strong progress at Business Insider with organic revenue growth of 46% in FY/17 ▪ Break-even for Business Insider envisaged for H2/18

Leading digital publisher

▪ Focus on classifieds and content ▪ Active portfolio management:

• Acquisition of Logic-Immo in France
• Acquisition of minority stake in Purplebricks in UK
• Acquisition of Universum (employer branding)
• Sale of aufeminin; early sale of Doğan stake
• Merger of Awin and affilinet with IPO as exit option

✓ ✓ ✓ ✓

1 3 4 2

What to expect in 2018? We will continue to deliver.

August 2018 Company presentation 6

➢ Further growth in classifieds ➢ Deliver on mid-term stable EBITDA guidance for News Media ➢ Break-even at Business Insider in H2/18 ➢ Explore further potential from technology and data

Successful first half of the year – adj. EBITDA up 11.7%, organic increase of 3.7%

August 2018 Company presentation 7

▪ Organic revenue increase of 4.3% and adj. EBITDA up by 3.7% organically ▪ Consolidation effects mainly from Logic-Immo and affilinet, deconsolidation of aufeminin Comments

in €m

H1/18 yoy

• rg.1

Q2/18 yoy

• rg.1

Revenues

1,560.9 5.9% 4.3% 787.4 4.9% 3.9%

Advertising

1,058.8 9.5% 7.0% 534.8 7.8% 6.3%

Circulation

294.7

• 6.4%
• 4.8%

147.3

• 5.7%
• 4.2%

Other

207.4 7.7% 5.8% 105.4 7.1% 5.1%

• adj. EBITDA

354.5 11.7% 3.7% 183.3 7.8% 1.1%

Margin

22.7% 1.2pp 23.3% 0.6pp

as IFRS 16 effects for adj. EBITDA.

• Adj. eps affected by phasing – Guidance for FY 18

confirmed (mid to high single-digit % org. growth)

August 2018 Company presentation 8

in €m

H1/18 H1/17 Q2/18 Q2/17

• adj. EBITDA

354.5 317.2 183.3 170.1

yoy change Depreciation / amortization (excl. PPA)

• 101.1
• 65.9
• 51.7
• 33.6
• adj. EBIT

253.4 251.3 131.5 136.5 Financial result

• 9.5
• 1.7
• 4.8
• 2.0

Taxes

• 74.6
• 80.1
• 38.3
• 43.0
• adj. net income

169.3 169.5 88.4 91.5 thereof attributable to non-controlling interests 23.0 20.1 9.9 9.4

• adj. eps1

1.36 1.38 0.73 0.76

yoy change (reported / organic) Non-recurring effects 59.7

• 17.2

34.4

• 5.4

Depreciation / amortization, and impairments of PPA

• 47.1
• 52.6
• 29.1
• 21.3

Taxes attributable to these effects 3.7 17.3 7.3 5.0 Net income 185.6 116.9 100.9 69.6 11.7%

• 2.1% / -0.7%

7.8%

• 4.4% / -3.2%

Net financial debt higher because of IFRS 16 – increase in FCF in line with expectations

August 2018 Company presentation 9

▪ Net financial debt includes leasing liabilities of €359.3m (PY: €0.4m), thereof €156.7m 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 €1,057.2m

Free cash flow (FCF) in €m Impact of leasing liabilities on net financial debt

Net financial debt of €1,416.5m

1 in June 2018 (leverage 1.9x 2)

133.9 163.2 134.8 171.1

H1/17 H1/17 H1/18 H1/18

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

Outlook 2018 unchanged on group level

August 2018 Company presentation 10

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

Low to mid single-digit % growth Mid to high single-digit % growth

Group

1) Revenue outlook based on 2017 revenues restated for negative effect of IFRS 15 adoption.

Segment outlook 2018: Increase of organic revenue guidance for classifieds media

August 2018 Company presentation 11

Reported Organic

(adjusted for effects from the adoption of IFRS 16 as well as consolidation and FX effects)

Classifieds Media

Revenues Double-digit % growth Increased to: Low double-digit % growth1

• adj. EBITDA

Double-digit % growth High single-digit to low double-digit % growth

News Media

Revenues Low to mid single-digit % decline Low single-digit % decline

• adj. EBITDA

Mid single-digit % growth Low to mid single-digit % decline

Marketing Media

Revenues High single-digit % decline2 High single-digit % growth2

• adj. EBITDA

High single-digit % growth Low double-digit % growth

Services/ Holding

Revenues Mid single-digit % decline Mid single-digit % decline

• adj. EBITDA

Low to mid single-digit % growth3 Low to mid single-digit % growth3

Classifieds Media

Classifieds Media: leading digital classifieds operator

August 2018 Classifieds Media 13 ▪ Leading digital classifieds

• perator

▪ 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 % growth3 EBITDA (adj.) in €m 413.2 Double-digit % growth High single-digit to low double-digit % growth EBITDA margin (adj.) 41.0%

▪ 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

M&A in Classifieds Media: Recent announcements

August 2018 Classifieds Media 14 ▪ One of the world’s leading employer branding specialists, based in Stockholm ▪ It helps 2,000 companies in more than 35 countries to monitor, define, develop and communicate their employer brand. ▪ Purchase price amounts to ~SEK 400m (~€38m) ▪ Transaction closed in May 2018

August 2018 Classifieds Media 15

Classifieds Media continues with low double-digit

• rganic revenue growth in H1/18

▪ Revenue increase due to continued strong organic growth (11.3%) as well as consolidation effects ▪

• Adj. EBITDA increase of 11.7% due to organic increase of 4.9% as well as effects from IFRS 16 and

consolidation effects ▪ Margin below the prior-year level due to planned investments into marketing and product for future growth as well as lower margins of newly consolidated companies Comments

as IFRS 16 effects for adj. EBITDA.

in €m

H1/18 yoy

• rg.1

Q2/18 yoy

• rg.1

Revenues

585.2 19.2% 11.3% 295.0 22.3% 11.2%

Advertising

567.8 17.7% 11.7% 282.6 19.4% 11.7%

Other

17.4 >100 %

• 12.3%

12.4 >100 %

• 17.4%
• adj. EBITDA

223.3 11.7% 4.9% 110.7 12.1% 4.0%

Margin

38.2%

• 2.5pp

37.5%

• 3.4pp

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 Spend Offline 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%

571 488

52% 48% 44%

92

56% 67%

83

33%

Source: OC&C

CAGR

+2%

2012 2016 2012 2016

65%

+4%

2012 2016 2012 2016

+3% August 2018 Classifieds Media 16

StepStone: Continued high organic revenue growth

H1/18 Financials ▪ Swedish employer branding specialist Universum acquired in Q2/18 ▪ Candidate delivery ahead of competition in nearly all areas ▪ ‘The Partnership’ (Totaljobs and Jobsite) introduced in May 2018: Joint offerings incl. cross-promotion of jobs ▪ Main market Continental Europe with customer number up 9% yoy, retention rate remains on a high level at 88% (-1pp yoy) Operational update H1/18

August 2018 17

since those are not recorded in operational subgroups 2) 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. 3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for

• adj. EBITDA.

in €m

H1/18 H1/17 yoy

• rganic3)

Revenues1)

279.5 230.5 21.3% 18.4% Continental 191.8 152.5 25.8% 24.6% UK 61.8 58.9 5.0% 7.4% SAON Group 20.2 18.8 7.2% 9.9%

EBITDA2)

98.6 90.3 9.1% 2.1% Continental 92.0 83.7 9.8% 6.1% UK 5.5 8.8

• 37.3%
• 52.4%

SAON Group 5.7 5.8

• 2.5%
• 4.0%

Margin

35.3% 39.2%

• 3.9pp

Continental 47.9% 54.9%

• 7.0pp

UK 8.9% 14.9%

• 6.0pp

SAON Group 28.3% 31.1%

• 2.8pp

Goal to become a comprehensive E-Recruiting company

Career guidance Search jobs Browse jobs / be found Research employer Research salary Application Interview Hire / Sign contract Career development Orientation Check cultural fit Follow-up Applications Future Product portfolio

Job seeker journey

August 2018 18

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

• ur 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

(GER/UK)

88% 6% 6% 88% (98% / 61%) 10% (1% / 34%) 2% (1% / 5%)

August 2018 19

Continued strong double digit organic growth

474 410

23

2006 2005 2007

+29%

2011 2009 2008 2012 2010 2016 2015 2014 2013 2017

Unemploy- ment Office Company websites Google base referral sites Craigslist Social networks Agents Google Jobs Social networks Social networks Indeed / Meta search engines Google / Facebook Indeed

+18% +17%

• rganic growth

Lehman

Group Revenue (in €m)

StepStone outperforms other players and has survived numerous so called ‘disruptive business models’

August 2018 20

Indeed / Google

CAGR – total: +29%

▪ H1 margin impacted by investments in brand and traffic ▪ FY/18 margin (incl. IFRS 16) expected to be slightly below prior year

320 257 202 159 137

StepStone Continental continues to provide strong

• rganic growth

Revenue StepStone Continental

52% 58% 58% 59% 56% 180

2015

151

2014

117 92 71

+24% +16% +27% 2015 2014 2013

+24% +27% +26% +14% EBITDA

Financial development by subgroup¹ (in €m)

Organic growth

costs are not recorded in operational subgroups, Universum (among others) is not allocated to one of the operational subgroups.

EBITDA Margin

August 2018 21

2016

84

+26%

152

+25%

2017 2013 2016 2017 H1/17 H1/18

192

+27% H1/17 H1/18

48% 55% 92

59 119 130 78 60

Organic growth in the UK picking up again

25% 24% 29% 20% 13% 16

2015

24

2014

38

2013

19 15

+/-0% +29% +67% 2017 2016 2015 2014 2013

+7% +3% +8% +11% ▪ TJG 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 (integrated platforms and overhead functions) ▪ Investments in future growth impact margin

• 8%

StepStone UK Revenue EBITDA

Financial development by subgroup¹ (in €m)

costs are not recorded in operational subgroups, Universum (among others) is not allocated to one of the operational subgroups.

August 2018 22 6

H1/18

62

+5% 2016 2017

118

H1/17

+7%

H1/18 H1/17

9 9% 15%

Organic growth EBITDA Margin

StepStone holds #1 positions in candidate delivery in most core markets

Candidate Delivery¹ - StepStone Continental

Germany Austria Belgium

August 2018 23

3.0 3.5 3.7 3.9 4.9 5.5 5.9 14.9 Xing Meinestadt Indeed Jobware Monster Linkedin Stellenanzeigen StepStone DE 3.5 4.1 5.7 6.9 7.6 7.8 13.3 Monster Vacature Linkedin Jobat Regiojobs Indeed StepStone BE 1.7 3.9 6.6 13.1 16.3 17.4 19.7 Linkedin Indeed Monster kurier.at StepStone AT Karriere.at derStandard

3.4 5.3 8.1 11.7 15.3 22.5 Facebook Linkedin NIJobs Indeed Irishjobs Jobs.ie

#1 positions in candidate delivery in UK and SAON Group

Candidate Delivery¹ - StepStone UK

United Kingdom South Africa Ireland

Candidate Delivery¹ - SAON Group

August 2018 24

2.8 4.2 10.7 11.6 14.7 17.0 23.1 Linkedin Monster CV Library Reed Jobsite Indeed TotalJobs

Potential:

37.8 29.3 56.3 64.6 103.3 Linkedin Careers24 CJ Pnet 167.9 37.8

Increasing customer numbers drive StepStone’s businesses

StepStone UK StepStone Continental SAON Group2

Changed business focus of Jobsite after acquisition, low value contracts removed

Customer number by subgroup (k)1

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).

August 2018 25

57.7 64.4 71.7 88.9 96.6 2015 2016 2017 LTM Jun-17 LTM Jun-18

CAGR +11%

41.3 36.9 43.8 39.5 44.0 2015 2016 2017 LTM Jun-17 LTM Jun-18

CAGR +3%

13.2 14.1 14.6 14.6 15.0 2015 2016 2017 LTM Jun-17 LTM Jun-18

CAGR +5% +12%

LTM figures are pro forma including meinestadt.de, Turijobs and Ictjob

+9% +3%

included in complete history. Figures subject to adjusted counting methodology.

SeLoger margin decline due to consolidation of Logic-Immo

H1/18 Financials ▪ Closing of Logic-Immo acquisition in Q1/18 ▪ ARPA (incl. verticals) increases by 6% yoy to €758 ▪ # of professional listings1) on Seloger.com: 984k (Logic-Immo: 708k, pre deduplication) ▪ Unique users2) of seloger.com up 2% to 5.9m, unique user of logic-immo +3% to 3.1m Operational update H1/18

August 2018 26

in €m

H1/18 H1/17 yoy

• rg.3)

Revenues

103.9 69.5 49.5% 4.3%

EBITDA

48.9 40.4 21.1% 6.9%

Margin

47.1% 58.2%

• 11.1pp

buildings and ancillary premises (cellars, parking spaces, fractions of common condo property, etc.) sold separately.

Source: OC&C, Conseil Général de l’Environnement et du Développement.

Structural tailwind in French real estate market supports…

French real estate classifieds recovery drives expansion of marketing budgets

LTM cumulated existing home sales transactions in k, 02/2012 – 05/2018, 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 May 18 1,000 500 Feb 12 Other Offline Advertising Print Advertising Other Online Advertising Online Classifieds

35% 43%

• 14%
• 1%

CAGR (12-16)

+6% +7%

• 8%

+1%

CAGR (16-20F)

+5% +6%

+8%

2

August 2018 27

Source: SeLoger

Constant roll-out of new products has been valued by customers

Growth in core and verticals drive SeLoger’s profitability

Average monthly ARPA made with professional customers, in €

Historical Revenue and EBITDA performance

Revenues and EBITDA in €m1 2011 2012 2013 2014 2015 2016

80 91 98 106 116 128 140 69 104 43 53 58 62 71 76 82 40 49 +9% +9%

CAGR 2011-2017

676 594 424 456 496 549 615 382 406 440 483 544

SeLoger excl. verticals SeLoger incl. verticals

CAGR +10% August 2018 28

2017

632 724

EBITDA Revenues 2011 2012 2013 2014 2015 2016 2017 H1/18 400 800

656 758 625 715

H1/17

+5% +6%

H1/18 H1/17

Source: autobiz

SeLoger: highest number of professional listings in France

Average of monthly listings H1/18 in k1

992 1,197 733 713 529 524 922

private listings

August 2018 29

+8%

SeLoger and Logic-Immo: Merger approved

After closing of the merger, joint product offering now in preparation to unlock further growth potential of two strong French real estate brands

Google Trends analysis on keyword “Logic Immo” in 20173

3.0 6.3

Google Trends analysis on keyword “Seloger” in 20172 Unique users in m1 high low high low

€140m in revenues in 2017 €70m in revenues in 2017

Source: Google Trends, Mediametrie, SeLoger, SPIR.

August 2018 30

Immowelt: Margin significantly up at 40%

H1/18 Financials ▪ ARPU increases by 11% yoy to €317 ▪ 21.2k DUO customers ▪ Visits1) at 43.9m (+1% yoy) ▪ # of residential listings1) at 205k (+6%) yoy Operational update H1/18

August 2018 31

in €m

H1/18 H1/17 yoy

• rg.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

Highly successful DUO migration completed in 2017 – at very low churn

Immowelt: number of DUO1 agents surpassed number of IS24 core agents

Number of agents in Germany2

IS24 core agents IW non-DUO agents IW DUO agents

Note: Definitions of IW DUO agents and IS24 Core Agents are aligned

Sources: Immowelt, IS24.

August 2018 32

20 16 12 4 8 24 Mar-17 20.5 Dec-16

[k]

22.6

11.1 Dec-15

22.9

19.4 7.4 Sep-15

23.3

20.0 4.3 17.0 19.3 Sep-16

22.6

17.4 17.4 Jun-16

22.3

17.6 14.7 Mar-16

22.1 22.8

17.4 17.2 21.2

22.4

Jun-17

22.0

21.4 Sep-17 17.0 Dec-17

22.0

17.5 21.5 18.5

21.0

21.4 Mar-18

21.7

Jun-18 20.7

Declining listings due to tight German residential market

Strong #2 position for residential listings

Average number of residential monthly listings (k)1

Note: Direct comparability of snapshot listing figures limited due to different listing models of IW and IS24 (while IW agents usually rotate listings, IS24 agents usually don’t). Sources: Management estimates, internal data.

August 2018 33

300k 200k 100k 0k

IS24 IW

H1/18

• 9%
• 5%

H1/17

Immowelt with strong ARPU growth ...

Immowelt‘s ARPU increased steadily over last quarters

... but below main competitor

(Immowelt Group DUO and non-DUO agents in Germany with a term contract).

ARPU (€/month)1 ARPU (€/month)1

Sources: Immowelt, IS24

+10%

Q2/18 Q1/18 Q4/17 Q3/17 Q2/17 Q4/17

€787 €306 €320 €314 €306 €300 €291

IS24

August 2018 34

2016 2017 2018F 2019F

Substantial revenue growth

Immowelt: Strong revenue growth with increasing EBITDA

Margin target of > 40% in 2019

Revenue (in €m) EBITDA (% of revenue)

August 2018 35 +7.3%

H1/17 H1/18 €54.3m €58.2m

34% 40%

Revenue EBITDA margin

>40% €19.4 €37.4 20% 34%

2018

Outlook: Continuous growth in brand awareness, performance, revenues and EBITDA

Financial outlook

EBITDA margin to increase to >40% in 2019 after brand investment phase

Profitability

Operations Marketing Revenues

Continue with significant marketing efforts Increased focus on products for lead generation Double-digit growth driven by ARPU increase and stable agent base

€

August 2018 36

News Media

News Media segment at a glance

August 2018 News Media 38

▪ 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 Business Insider 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)

▪ Business Insider ▪ eMarketer ▪ upday ▪ Ringier Axel Springer Media (Poland, Hungary, Serbia, Slovakia)2 ▪ Ringier Axel Springer Schweiz3

National International News Media

(Main activities)

Financials

2017 Outlook 2018 (reported) Outlook 2018 (organic4) Revenues in €m 1,509.8 Low to mid single-digit % decline Low single-digit % decline EBITDA (adj.) in €m 218.8 Mid single-digit % growth Low to mid single-digit % decline EBITDA margin (adj.) 14.5%

corresponds to previous range of €205m - €225m.

Overview News Media National and International

August 2018 News Media 39

in €m H1/18 yoy

• rg.1

Q2/18 yoy

• rg.1

H1/18 yoy

• rg.1

Q2/18 yoy

• rg.1

Revenues

524.4

• 1.7%
• 2.4%

274.1

• 1.4%
• 1.9%

207.7 8.2% 11.7% 106.4 4.7% 8.9%

thereof digital

135.5 11.6% 8.4% 70.3 12.1% 9.8% 130.5 13.4% 16.8% 67.5 10.4% 14.7%

digital share of revenues

25.8% 25.7% 62.8% 63.4%

Advertising

214.4 0.4%

• 1.7%

117.2

• 0.6%
• 1.8%

116.1 14.4% 16.4% 60.5 8.4% 11.2%

Circulation

233.9

• 6.1%
• 6.1%

117.2

• 5.2%
• 5.2%

61.1

• 6.9%

0.8% 30.3

• 7.1%

0.2%

Other

76.1 7.3% 8.1% 39.8 8.7% 8.7% 30.4 22.6% 20.3% 15.6 17.9% 19.8%

• adj. EBITDA

80.9

• 8.6%
• 15.0%

45.0

• 14.6%
• 19.3%

32.5 45.2% 27.2% 19.0 39.2% 26.7%

Margin

15.4%

• 1.2pp

16.4%

• 2.5pp

15.7% 4.0pp 17.9% 4.4pp News Media National News Media International

News Media: Good first half for advertising both in National and International

August 2018 News Media 40

as IFRS 16 effects for adj. EBITDA.

▪ Revenues up 0.9%, only minor effects from consolidation and FX ▪ 36.3% of revenues from digital activities ▪ Advertising revenue development strong in Q2/18 – German print ad revenues underlying almost stable yoy ▪

• Adj. EBITDA up 2.3% reported, driven mainly by effects from IFRS 16 (organically down 6.6%)

Comments

in €m

H1/18 yoy

• rg.1

Q2/18 yoy

• rg.1

Revenues

732.0 0.9% 1.2% 380.5 0.2% 0.9%

thereof digital

266.0 12.5% 12.5% 137.8 11.2% 12.2%

digital share of revenues

36.3% 36.2%

Advertising

330.4 4.9% 4.1% 177.7 2.3% 2.3%

Circulation

295.0

• 6.3%
• 4.7%

147.5

• 5.6%
• 4.1%

Other

106.6 11.3% 11.3% 55.4 11.2% 11.7%

• adj. EBITDA

113.4 2.3%

• 6.6%

64.0

• 3.5%
• 10.0%

Margin

15.5% 0.2pp 16.8%

• 0.7pp

43 56 81

2015 2016 2017

▪ #1 global business publication by reach ▪ Major business news website in the US (founded 2007) ▪ Total reach of 123.9m monthly unique users and an average of 3.1bn video views per month in 2017 ▪ Acquisition in 2015, based on a company valuation (cash/debt free) of $390m (~€348m) ▪ Revenues up by 46% in FY/17 yoy ▪ Revenues to grow >30% (CAGR 2015-20), break-even excl. IFRS 16 effects targeted for H2/18, break-even incl. IFRS 16 effects achieved in H1/18

Company profile Revenue development in $m

Business Insider – another year of strong growth in 2017

August 2018 News Media 41 +30% +46% CAGR 2015-17 +38%

AS acquisition: Oct 2015

100.000 200.000 300.000 400.000 500.000 600.000

May-14 Dec-14 Jul-15 Feb-16 Sep-16 Apr-17 Nov-17 Jun-18

Monetizing content in digital: positive development

News Media 42

Digital subscribers

Source: IVW

+10.2%

June 2018 vs. June 2017

80,317 404,495

52,672 200,571

August 2018

Marketing Media

Marketing Media segment at a glance

August 2018 Marketing Media 44 ▪ #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 (kaufda/retale) ▪ Finanzen.net ▪ Awin

Reach Based Marketing Performance Marketing Marketing Media

(Main activities)

2017 Outlook 2018 (reported) Outlook 2018 (organic2) Revenues in €m 984.5 High-single-digit % decline3 High single-digit % growth3 EBITDA (adj.) in €m 95.6 High single-digit % growth Low double-digit % growth EBITDA margin (adj.) 9.7%

Overview Marketing Media Subsegments

August 2018 Marketing Media 45

in €m

H1/18 yoy

• rg.1

Q2/18 yoy

• rg.1

H1/18 yoy

• rg.1

Q2/18 yoy

• rg.1

Revenues

129.6

• 15.3%
• 0.5%

56.6

• 26.8%

0.6% 88.2 19.2% 5.3% 43.1 15.8% 2.1%

Advertising

108.0

• 15.9%
• 3.6%

49.0

• 24.9%
• 3.2%

52.5 27.2% 4.0% 25.5 23.6% 0.9%

Other

21.6

• 12.3%

19.6% 7.6

• 37.0%

38.5% 35.7 9.1% 7.0% 17.6 6.1% 3.6%

• adj. EBITDA2

34.9 11.8% 20.5% 17.3

• 13.5%

1.5% 16.0 18.8%

• 16.3%

8.1 6.5%

• 24.2%

Margin

27.0% 6.5pp 30.6% 4.7pp 18.1%

• 0.1pp

18.9%

• 1.6pp

Reach Based Marketing Performance Marketing

▪ Revenues down yoy due to deconsolidation of aufeminin. Organic revenues up 1.6% in H1/18 yoy: Reach-based marketing slightly below H1/17 (-0.5%) due to US exit of Bonial in Q4/17, Performance Marketing with organic increase of 5.3% ▪

• Adj. EBITDA up 15.7% (+9.5% organically). Reach Based Marketing EBITDA with strong organic

increase of 20.5%, Performance Marketing with decline of 16.3% Comments

Marketing Media with significant margin increase

August 2018 Marketing Media 46

IFRS 16 effects for adj. EBITDA.

in €m

H1/18 yoy

• rg.1

Q2/18 yoy

• rg.1

Revenues

217.8

• 4.0%

1.6% 99.7

• 12.9%

1.2%

Advertising

160.5

• 5.4%
• 1.6%

74.5

• 13.2%
• 2.0%

Other

57.3

• 0.1%

11.4% 25.2

• 12.0%

11.8%

• adj. EBITDA

46.7 15.7% 9.5% 23.1

• 8.4%
• 7.5%

Margin

21.4% 3.7pp 23.2% 1.2pp

Sale of aufeminin closed at highly attractive purchase price

August 2018 Marketing Media 47

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

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-on acquisitions ▪ 2017 – entering the next growth phase ▪ Sale to TF1 enables next step in aufeminin‘s development

Appendix

Organic revenue development digital media

August 2018 Company presentation 49

yoy

H1/18 Q2/18 Q1/18 FY/17 FY16 FY15 FY14

Digital Media

9.4% 9.4% 9.5% 12.5% 10.7% 9.2% 7.6%

Classifieds Media

11.3% 11.2% 11.3% 12.7% 12.5% 12.9% 9.8%

Jobs 18.0% 17.2% 18.9% 17.0% 17.6% 21.2% 13.5% Real Estate 6.2% 6.0% 6.4% 10.8% 6.3% 4.8% 6.0% General/Other 4.2% 5.1% 3.4% 6.3% 9.7% 4.0% 9.8%

News Media

12.5% 12.2% 12.8% 12.0% 14.7% 3.2% 8.4%

National 8.4% 9.8% 6.9% 3.2% 17.4% 0.8% 11.5% International 16.8% 14.7% 19.2% 25.1% 9.4% 8.2% 4.2%

Marketing Media

1.6% 1.2% 1.9% 12.4% 7.5% 9.2% 6.2%

Reach Based

• 0.5%

0.6%

• 1.4%

12.0% 15.6% 13.6% 7.8% Performance Based 5.3% 2.1% 8.5% 12.7% 4.2% 7.7% 5.3%

Restructuring expenses

August 2018 Company presentation 50 in €m

H1/18 Q2/18 Q1/18 FY/17 Q4/17 Q3/17 Q2/17 Q1/17 Group 8.1 2.7 5.4 47.6 28.5 9.5 4.8 4.9 Classifieds Media 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 News Media 2.9 0.9 2.0 29.3 18.8 4.8 2.9 2.9 Marketing Media 0.3 0.1 0.2 0.5 0.1 0.2 0.0 0.2 Services/Holding 4.9 1.7 3.2 17.8 9.6 4.5 1.9 1.8

Berlin real estate transactions optimize capital structure

August 2018 Company presentation 51 ▪ Signed in 2017, closing in Q4/17 ▪ Purchase price of €330m ▪ Tax payments of €80m ▪ Profit (post tax) of €130m ▪ Lease of majority of office space until 2020 ▪ Signed in 2017, closing in January 2018 ▪ Contribution of Axel Springer headquarter high-rise to contractual trust agreement (CTA) ▪ Long-term lease-back starting 2018 ▪ Reduction of pension liabilities by ~€140m ▪ Signed in 2017, closing expected in Q4/19 ▪ Expected total capex and sale related costs of ~€320m, thereof ~€230m from 2018 until completion ▪ Purchase price of €425m ▪ Tax payments of ~€30m ▪ Long-term lease from 2020

• nwards

Sale and lease-back of Axel-Springer-Passage Contribution of high-rise to pension fund Forward-sale and lease- back of new building

As already announced, new international accounting standards implemented since 2018

August 2018 Company presentation 52

Overview ▪ New standard regarding the recognition of revenues ▪ Mandatory as of Jan. 2018 ▪ Complete overhaul of revenue recognition principles ▪ Revenues of Performance Marketing to decrease by approximately 75% ▪ FY/17 effect on Group revenues of € – 507.2m

IFRS 15

Overview ▪ New standard regarding the accounting of leases ▪ Mandatory as of Jan. 2019, early adoption possible as of Jan. 2018 (Axel Springer early adopter) ▪ Recognition of leases with lease terms longer than 12 months as assets and liabilities ▪ Adj. EBITDA: €45m to €50m effect when comparing 2018 to 2017 (excluding lease contracts starting January 2018)1

IFRS 16

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 Spend Offline Mkt Spend 2016

50%

2020F

63%

1,447

50%

+12% 1,170

15%

1,031

85%

991

79%

799

65%

903

77% 23%

723 571

69%

102

67% 73%

92

Source: OC&C

CAGR 2016 2020F 2016 2020F

72%

2016 2020F 2016 2020F

37% 21% 35% 28% 31% 27% 33%

+3% 6% 9% 5% August 2018 Classifieds Media 53

Our assets have consistently outperformed their respective online classifieds markets (2012 – 2016)

Jobs Germany 19.9% Jobs UK 8.2% Real Estate France 8.0%3 Real Estate Belgium 10.5%4 Real Estate Germany 1.3% 15.2%5 5.4%5 6.2% 7.7% 13.0% Axel Springer organic revenue growth1 Total online classifieds growth2

One exception – prior to the merger:

August 2018 Classifieds Media 54

Classifieds with very strong organic growth and high underlying margins

August 2018 Classifieds Media 55

Revenues EBITDA margin, adj.

Organic growth yoy 2015 2016 2017 H1/2018 Jobs

+21.2% +17.6% +17.0% +18.0%

Real Estate

+4.8% +6.3% +10.8% +6.2%

General/Other

+4.0% +9.7% +6.3% +4.2%

Total classifieds +12.9%

+12.5% +12.7% +11.3%

Margin 2015 2016 2017 H1/2018 Jobs

43,7% 42,9% 41.7% 35.5%

Real Estate

46,4% 44,9% 50.4% 46.7%

General/Other

30,7% 32,7% 32.0% 36.1%

Total classifieds

40,5% 40,3% 41.0% 38.2%

Jobs classifieds with continued excellent organic growth of 18.0% in H1/18

56 August 2018 Classifieds Media 56

34%

▪ Reported revenue increase of 20.9% mainly driven by strong organic growth of 18.0% ▪ Continental European operations again the main driver for organic revenue growth (organic increase

• f 24.6%)

▪

• Adj. EBITDA up 9.1% (2.1% organically)

▪ Margin down 3.8pp due to planned investments for future growth (marketing and product) Comments

• adj. EBITDA which includes costs of €5.6m in H1/18 and €4.3m in H1/17 (thereof business development, M&A and other), not allocated to the three subsegments.

Jobs

in €m

H1/18 yoy

• rg.1

Q2/18 yoy

• rg.1

Revenues

278.1 20.9% 18.0% 143.2 23.0% 17.2%

• adj. EBITDA2

98.6 9.1% 2.1% 51.9 9.1% 1.0%

Margin

35.5%

• 3.8pp

36.2%

• 4.6pp

Jobs Marketing Spend1: Germany with double digit growth forecast in Online Classifieds

August 2018 57 (in €m)

Germany

Spend / Job

€185 €212 €252

Turned Over Jobs 5.9m

5.5m 5.8m 3.4%

• 1.5%

4.4% 1.0%

676 30 8 7 283 11

1,091

22 55

2020

14 26

1,447

422 72 58 58 29 767

2016

59 486 28 25 23 512

12

26

1,170

2012

• Rev. Stream

12-16 16-20 Referral Schemes

2% 5%

Offline Branding

• 3%

0%

Recruitment Events

2% 5%

Print Classifieds

• 8%
• 3%

Online Branding

35% 24%

Professional Networks

37% 20%

CV Databases

2% 5%

Online Classifieds

16% 11%

CAGR CAGR

+5% +2%

119 34 30

SAON Group provides double digit organic growth rates and high margins

+678% +30% +14% 2016 2015 2014 2013

+11% +15% +7% ▪ SAON Group acquired in late 2013, CareerJunction in 2015 ▪ Growth in almost all countries around the world

3

SAON Group Revenue EBITDA

23 34 30

Financial development by subgroup¹ (in €m)

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

August 2018 58 38

2017

+10%

+11%

1 8 10 10 12 6 6 20% 37% 34% 30% 33% 0% 10% 20% 30% 40% 50% 2 4 6 8 10 12 14

2013 2014 2015 2016 2017 H1/17 H1/18

19 20

H1/17 H1/18

+10%

28% 31%

+7%

High customer retention provides a strong base for growth for StepStone

Customer Retention Rate (in %)1

StepStone UK2 StepStone Continental SAON Group

renewals from customers of both Totaljobs and Jobsite who decided to renew after expiry of both former contracts.

Overall Retention Large customers

August 2018 59

86% 88% 87% 88% 96% 97% 98% 98%

2015 2016 2017 LTM Jun-18

80% 82% 81% 77% 95% 95% 93% 90%

2015 2016 2017 LTM Jun-18

73% 74% 73% 73% 84% 88% 86% 87%

2015 2016 2017 LTM Jun-18

Real Estate classifieds with consolidation effects from Logic-Immo

60 August 2018 Classifieds Media 60

▪ Reported revenue growth of 28.2% driven by consolidation effects from Logic-Immo (organic revenue increase 6.2%) ▪

• Adj. EBITDA up 19.2% (+11.1% organically)

▪ Decline of reported margin due to integration of Logic-Immo (lower margin business) Comments Real Estate

in €m

H1/18 yoy

• rg.1

Q2/18 yoy

• rg.1

Revenues

183.7 28.2% 6.2% 96.8 33.0% 6.0%

• adj. EBITDA2

85.9 19.2% 11.1% 44.1 19.5% 9.6%

Margin

46.7%

• 3.5pp

45.6%

• 5.2pp

• adj. EBITDA which includes costs of €5.6m in H1/18 and €4.3m in H1/17 (thereof business development, M&A and other), not allocated to the three subsegments.

+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

407 287 176

CAGR

Sources: Immowelt, OC&C (German residential real estate only).

August 2018 61

Immoweb with strong revenue growth and high margin

H1/18 Financials ▪ ARPA increases by 6% yoy to €544 ▪ # of listings1) up by 5% yoy to 151k ▪ Real visitors2) slightly down by 1% with a monthly average of 1.6m 2018 Operational update H1/18

August 2018 62

in €m

H1/18 H1/17 yoy

• rg.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

Solid market growth over the last decade translated into online marketing budgets

Source: Statistics Belgium, OC&C.

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 2016 2014 2012 2010 2008 2006

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

August 2018 63

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, Produpress study, Eurostat

Belgium France Germany1

58% 46% 70% 78% 2% 6%

x12.4

August 2018 64

+24pp

Immoweb attracts twice as many visitors than #2 competitor…

Average of monthly real visitors in H1/181

…leading to strong and highly engaged traffic on Immoweb

Average of monthly audience statistics on Top3 RE portals in H1/181

Source: CIM, Statistics Belgium.

2.0x 2.2x

22%

Visits

19%

15m

59% 83% 10%

171m minutes

Time spent

8%

August 2018 65

Immoweb outraces Belgian competition in market reach

27 31 33 36 40 20 22 16 20 22 25 26 13 14

2013 2014 2015 2016 2017 H1/17 H1/18

350 385 410 460 514 515 544 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 2017 2016 2015 2014

61% 64% 67% 70%

EBITDA EBITDA margin

Going forward, Immoweb expects mid to high single-digit revenue growth and to maintain their margins.

CAGR +10%

Revenues

August 2018 66

H1/17

67%

H1/18

+6%

2013

66% 65%

General/Other with slight improvement in organic growth in Q2/18

67 August 2018 Classifieds Media 67

▪ Revenue increase of 4.9% (4.2% organic growth) ▪ Slow start to the year at Yad2 and @Leisure ▪ Meinestadt.de reallocated to Jobs classifieds (prior year numbers restated) ▪

• Adj. EBITDA up 6.4% (+3.3% organically)

Comments General/Other

in €m

H1/18 yoy

• rg.1

Q2/18 yoy

• rg.1

Revenues

123.4 4.9% 4.2% 55.1 5.6% 5.1%

• adj. EBITDA2

44.5 6.4% 3.3% 17.7 7.0% 4.3%

Margin

36.1% 0.5pp 32.1% 0.4pp

• adj. EBITDA which includes costs of €5.6m in H1/18 and €4.3m in H1/17 (thereof business development, M&A and other), not allocated to the three subsegments.

Car&Boat Media: Organic growth driven by ARPU increase

H1/18 Financials ▪ ARPU up by 10% yoy to €447 ▪ # of professional customers1) slightly (-1%) below prior year at 8.5k ▪ # of professional listings1) down by 2% yoy to 270k ▪ Unique visitors2) up by 25% to 4.9m Operational update H1/18

August 2018 68

figures to prior-year period due to new methodology regarding the measurement of mobile traffic introduced by Mediametrie in H1/18

in €m

H1/18 H1/17 yoy

• rg.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

20 32 449 270

LaCentrale works with professionals that have a significant used car activity

Sources: Company Information

Professional listings Listings per professional1

• 40%

+60%

(in k, monthly average H1/2018) (in k, monthly average H1/2018)

August 2018 69

298 28 476 449 270 925

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 2016 2015 2018

4.9m 12.1m Traffic Jan-May 2018

August 2018 70

2017 2016 2015 2018 2017

Carboat Media has benefited from constantly growing monetization

Monthly customers Monthly ARPU (in €)

August 2018 71

* CAGR 07/13-06/18. 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%*

8,403 €459 Jan 2009 Jun 2018 Jul 2013

CAGR +14%

Carboat Media developed its EBITDA positively since AS acquisition

Revenues & 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%

Market professionalization and product innovation to drive mid-single digit revenue and EBITDA growth

AS acquisition: July 2014 2017

August 2018 72 59.4 27.0

H1/17 H1/18

29.5 31.3 15.2 13.7

+10%

Yad2 with headwind from FX and slower organic growth due to difficult real estate market

H1/18 Financials ▪ # of listings: 412.3k (-4% yoy) ▪ Unique visitors slightly up by 12% to 2.4m (H1/17: 2.7m) ▪ Visits down by 7% to 11.3m (H1/17: 12.1m) Operational update H1/18 1)

August 2018 73

in €m

H1/18 H1/17 yoy

• rg.2)

Revenues

18.9 20.1

• 6.0%

1.1%

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 H1/18)1

Visits

(in m, monthly average H1/2018)2

7.5 >3x >9x 412

184 142 78 8

2nd Hand Real Estate Cars Jobs

74 August 2018 >23x >26x 11.3

Listings

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

August 2018 75

28% 25% 13%

Yad2 with slow start to the year and impacted by negative FX

Revenue 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.

Leading revenue stream with ongoing strong growth 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 August 2018 76

9%

2017

40.0

H1/17 H1/18

20.1 18.9

1%

@Leisure with slow start to the year

H1/18 Financials ▪ Full service (Belvilla, Land & Leisure): pro forma booking value1) down by 10% yoy to €155m ▪ Self service (Traum-Ferienwohnungen): total listings2) in Europe up 13% yoy to 83k Operational update H1/18

August 2018 77

in €m

H1/18 H1/17 yoy

• rg.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

@Leisure focuses on the supply/homeowner side of the market

Other Full- service provider

Guest Homeowner Secondary homes Primary homes

Source: Company information per Q2/18.

Full-service

>31k Inventory

Aggregator

>500k1 Inventory

Self-service >83k Inventory

August 2018 78

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

August 2018 79

Consolidation opportunity: home owner side with low degree of digitization and professionalism

Source: Phocuswright, Radius Global Market Research (2011).

Share of (professionally) marketed vacation rentals is low in a very fragmented industry

Holiday homes in Europe (in m) Total vacation homes in Europe Marketed by owner / Self-service Not actively marketed Not for rent Marketed professionally / Full-service

~13% ~3%

1/3 of inventory potential for active marketing by owners or professionals

24 8 10 4 2

Approximate inventory share

• f leading player

August 2018 80

Additional potential for professional marketing

@Leisure with “buy and build” strategy

@Leisure full year revenue and EBITDA 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 2016 2015

55 14 11 90

Revenue: >1.5x in next 3-5 years1 EBITDA: >2.0x in next 3-5 years1

20% 15%

x%

EBITDA margin

August 2018 81 16%

2017

125 19

H1/17 H1/18

22% 69 15 23% 73 17

eMarketer with strong revenue growth and high margins

82 ▪ A leading provider of high-quality analyses, reports, and digital market data for companies and institutions ▪ 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 ▪ Revenues to grow double-digit* (CAGR 2015-19), EBITDA margin to reach 40%+ until 2019 (from 30% in 2015)

Company profile High customer satisfaction and retention

News Media August 2018

73.7 76.3 91.6 89.1 83.3 78.3 103.2 98.1 2016 2017 2016 2017

Source: Company information.

Limited Seat Open Access Renewal Rate (in %) by subscription type1 Recapture Rate (in %) by subscription type1

* Based on FY/15 revenues of $45.5m.

upday – Europe‘s biggest mobile news service

August 2018 News Media 83 ▪ Strategic partnership to develop mobile news services exclusively for Samsung devices ▪ #1 news app in Europe ▪ Delivering up to 10% of publishers’ mobile traffic ▪ Advertising for a targeted audience with non-intrusive formats ▪ More than 20 million monthly users on major Samsung smartphones (flagships, A-series and J-series) ▪ Expansion onto other Samsung devices (Tablets, Smart TV, Family Hub fridges)

Company profile European Footprint

Editorial offices since 2016 Editorial offices since 2017 Country editions launched in 2017 Country editions launched in 2016

Marketing Media 84

Merger of AWIN and affilinet strengthens competitive position in Europe

Two leading performance marketing networks have joined forces to drive future growth 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

August 2018

▪ Organic low double-digit EBITDA increase of AWIN group expected going forward ▪ Transaction closed in October 2017, IPO envisaged after period of integration ▪ Holding structure: 80% Axel Springer, 20% United Internet

Investor Relations contacts

August 2018 Company presentation 85

Claudia Thomé Co-Head of Investor Relations Phone: +49 30 2591 77421 Mobile: +49 160 90445035 claudia.thome@axelspringer.de 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 daniel.fard-yazdani@axelspringer.de