engaging new audiences in the mobile-first continent...

Engaging new audiences in the mobile-first

continent: Ringier’s digital foray into Africa

2 Strictly Confidential – 2015

RINGIER AFRICA, FIPP DUBAI Schwarz

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RINGIER GROUP IS A LEADING MEDIA GROUP ON THREE CONTINENTS…

$1.1 BILLION REVENUE Systematic diversification, 40%+ of revenue

coming from digital revenue streams in 2014

15 COUNTRIES Geographic expansion to Eastern Europe, the

Far East and now Africa, makes Ringier a specialist in emerging markets

182 YEARS Ringier stands for a legacy of pioneering

spirit, individuality and diversity in information

6,500 EMPLOYEES Ringier serves diverse audiences, developing

innovative media and discovering new markets

78 MILLION REACH Across all platforms, markets and media,

Ringier reaches 78 million people monthly

210+ PLATFORMS Ringier has a portfolio of over 120

newspapers, magazines and 90 web and mobile platforms

Ran by the same family for five generations, Ringier not only forms an integral part of

Switzerland‘s identity, but has shaped the media landscape well beyond the country’s borders



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…INVESTING HEAVILY IN THE DIGITAL TRANSFORMATION…

Since 2007, Ringier

has invested some

CHF 1.6bn in

transforming the

company into a

leading diversified

digital media group

In 2014, over 40% of

the group’s overall

revenue was already

generated by its

digital operations, as

was nearly 65% of its

group EBITDA

In the last seven years, the Ringier family has invested some CHF 1.6bn Swiss francs in transforming its

company

Digital revenue in % of total revenues

8,5% 8,7% 10,3%

13,5%

18,3%

25,7%

32,1%

+40%

2008 2009 2010 2011 2012 2013 2014 2015(e)



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…WITH A TRACK RECORD OF SUCCESSFUL EXPANSION IN EMERGING COUNTRIES. Geographic expansion in emerging markets is inherent in Ringier’s DNA and the group has

consistently proven it’s excellence at execution in these regions

City

Weekend

(China)

#1 English media brand in

China including digital

platforms and magazines for

entertainment and lifestyle

60%+ market share, 80%

digital growth y-o-y

14+ assets 3 countries since 1987

12 assets 6 countries since 2011

65+ assets 5 countries since 1990

Eastern Europe East Asia

Africa

Ringier entered the market in 1991, to become

the leading media house in the Eastern Europe,

generating ca. $600m a year

In 2010, Ringier and Axel Springer merged their CEE busi-

nesses in a partnership. In 2014, both parent

companies’ Hungarian assets joined the JV,

underlining the successful partnership

Via Onet, Ringier Axel Springer now reaches more than

70% of Polish internet users

Central & Eastern Europe Marry and

Marry baby

(Vietnam)

East Asia Examples

Leading wedding directory

and parenting site in Vietnam

Profitable million USD

business within 3 years

Growing reach of 14m

visitors per month

5

RINGIER AFRICA, FIPP DUBAI

WHY AFRICA?



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Ringier Africa’s 9 key regions represent a substantial market, the size of

Europe

LANDMAS

S

POPULATION

2014

GDP 2014

NIGERIA

UGANDA

CAMEROON

TANZANIA

KENYA IVORY

COAST GHANA

ETHIOPA SENEGAL

5 million km2

4.5 million km2

495 million

510 million

880 billion

18 trillion

2014-20

CAGR 4.7% CAGR 1.9% CAGR

AN ENORMOUS MARKET TO PENETRATE

Source: World Bank, IMF



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A RAPIDLY GROWING AND DIGITALLY DEVELOPING MARKET…

EMERGING AFRICAN MIDDLE CLASS WITH A BURGEONING DIGITAL

POPULATION SKIPPING THE OFFLINE GENERATION

Globals (>$20k)

Consuming

middle class

($10-20k) Emerging

consumers ($5-

10k)

Basic

consumer

needs ($2-5k)

Destitute

(<$2k) 47 44

63 71

41 56

27

41 16

29 194

242

2008 2020F

DIS

CR

ET

I

ON

AR

Y

INC

OM

E

By 2020, more than half of African households

will have discretionary spending power

Annual

household

income

# African households (m)

By 2020, over 125 million African

households will have discretionary

income to spend of which 70

million will be classed as the

«consuming middle class» or

above

Source: McKinsey Global Institute, Ovum, World Cellular Information Service, Ovum, WirelessIntelligence

Africa is a « mobile first continent »

53

6m

63

7m

73

3m

80

8m

88

6m

96

6m

1.0

39

m

1.1

08

m

1.1

71

m

1.2

30

m

26

m

41

m

62

m

96

m

15

5m

23

8m

36

0m

52

1m

71

3m

95

0m

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Mobile subscriptions Mobile broadband subscriptions

Middle Africa

55m* 41%** 25%***

Northern Africa

215m* 100%** 14%***

Western Africa

209m* 66%** 17%*** Eastern Africa

144m* 42%**

26%***

Southern Africa

77m* 131%** 21%***

* connections, ** penetration, *** annual growth

1.1bn

205m+

80m

750m+ Active mobile

subscriptions

Mobile

penetration

Active social

network users

87%

Social networking

penetration 7%

Internet

penetration 18%

Internet

users

Total

population



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AFRICA: A DIGITAL GIANT IN THE MAKING

Source: McKinsey

OTHER MISCELLANEOUS

In 2013 By 2025

INTERNET PENETRATION 16% ~50%

INTERNET USERS 167m 600m

# SMARTPHONES 67m 360m

INTERNET CONTRIBUTION TO GDP

$18bn $300bn

52m Facebook

users

>50% of urban

residents are online

$75bn annual

e-commerce sales

~$300bn productivity

gains in key sectors

9


WHAT MAKES SENSE TO DO?



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RETAIL INFRASTRUCTURE PROVIDING HIGH GROWTH AND HIGH MARGIN OPPORTUNITY

RETAIL DENSITY BY GEOGRAPHY

Source: Planet Retail Database, IMF, WEO Database

Number of people per retail outlet (2013)

1.152

28.272

18.496

86.332 90.537

US Russia & CIS LatinAmerica

MEA Asia Pacific

75x

A high number of people per retail store and the

resulting low density of offline retail stores in less

developed countries giving new generation e-

commerce players a unique opportunity to

leapfrog the development of brick-and-mortar

retail stores and to gain market share before slow-

moving incumbent players shift online

A challenging African market with a lack of

appropriate infrastructure and reliable logistics

providers, less developed payment systems and

opaque legal systems. This high complexity

environment is representing significant entry

barriers and provide higher expected margins

due to the lower number of active players in the

market



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TOTAL ADDRESSABLE CLASSIFIEDS MARKET INCREASING RAPIDLY

CLASSIFIEDS MARKET 2020 CLASSIFIEDS MARKET 2015

214 MILLION

2020 DATA ENABLED POPULATION

2015 Assumptions:

2020 ADDRESSABLE MARKET: CHF 200M

Sources: World Bank Data, Internal research and analysis

TOTAL POPULATION

297 million

INTERNET POPULATION

40 million

2020 Assumptions:

TOTAL POPULATION

338 million

INTERNET POPULATION

ARPU ESTIMATE

78 million 6.0 CHF

WHILE THE ENORMOUS POTENTIAL FOR THE CLASSIFIEDS MODEL IN AFRICA IS OBVIOUS, NO SIZABLE & MONETISED ASSET HAS

ARISEN YET

ALTHOUGH STILL IN ITS INFANCY AND GROWING FAST, THE MONETISATION OF

DIGITAL CLASSIFIED ASSETS SHOULD RESULT IN A TAM OF CHF 200M IN

TARGETED COUNTRIES BY 2020

PROJECT JOLLOF – CORPORATE PRESENTATION

12


-

50

100

150

200

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Kenya Online Ad Revenue Kenya Mobile Ad Revenue

Nigeria Online Ad Revenue Nigeria Mobile Ad Revenue

39% 36%

29% 30% 32% 31% 31%

19% 15%

19%

13% 12% 10% 9% 9%

2014 2015 2016 2017 2018

NGR KEN Global

11% 10%

8%

8%

7%

34%

26%

19%

16% 14%

21% 24%

8%

3%

8%

43%

37%

29%

25% 26%

37%

27%

18%

23% 23%

42%

44%

38%

35%

38%

2014 2015 2016 2017 2018

Global Online Global Mobile KEN Online

KEN Mobile NGR Online NGR Mobile

INTERNET ADVERTISING REVENUE GROWTH IN NGA & KEN ABOVE GLOBAL AVG. (ONLINE AND MOBILE COMBINED)

ONLINE VS. MOBILE AD REVENUE IN NGA & KEN VS. THE GLOBAL AVERAGE

Mobile advertising growth rates far above global average

Source: PWC, Ovum

MOBILE AD REVENUE UNSURPRISINGLY MAKES UP THE LION SHARE IN KEY AFRICAN MARKETS (ALL FIGURES IN $ MILLION)

Kenya online ad revenue

Nigeria online ad revenue

Kenya mobile ad revenue

Nigeria mobile ad revenue Global online

KEN mobile

Global mobile

NGR online

KEN online

NGR mobile

ADVERTISING IS GROWING STRONGLY – AND IS MOBILE

PROJECT JOLLOF – CORPORATE PRESENTATION

13


40%

28%

5%

28% Search

Display

Video

Mobile

$137bn (2014)

Key drivers for global digital advertising growth:

Video: +24% CAGR 2014-2018, (fastest growing

segment), thanks to new outstream formats and continued

growth of pre-roll;

Mobile: +22% CAGR, driven by more mobile usage and

video formats;

Real Time Bidding (RTB): demand for programmatic

bidding & improved targeting / planning

Native advertising: matching the user experience

IMPORTANT DRIVERS FOR GLOBAL DIGITAL AD SPEND

Source: eMarketer

Note: Whilst these global trends still apply to Africa,

there will be some variation in the nature of such

growth in developing markets (e.g. in Africa the

emphasis of growth will be even more pronounced on

mobile for instance).

PLENTY OF MONETISATION POTENTIAL FOR DIGITAL CONTENT

14


WHAT‘S RINGIER DOING IN AFRICA?



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Professionalisation of operations

to ensure future scalability and

adaptability of digital businesses

Ringier Africa pioneered in the African digital media landscape in late 2011 and has kept expanding

its reach ever since

FROM TEST BALOONS TO MASS-REACH PLATFORMS

2011 2013 2014 2012 2015

TRAFFIC SPLIT BY BUSINESS MODEL (IN MILLION PAGE VIEWS):

PROTOTYPE

Local responsiveness: in a first

phase, Ringier tested the

market characteristics

& needs, and carefully adapted

it’s business models

PROFESSIONALISE PUSH (2011 – 2012) (2013 – 2014) (2015+)

Acceleration phase with

replication and roll-out to

new markets based on the

solid ground built to date

1

16 26 46

142

305 Digital Content

Digital Classifieds

Online Deals



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RINGIER AFRICA: A DIVERSIFIED MEDIA COMPANY

4 strategic pillars to attract a massive African audience

CLASSIFIEDS

Long-term monetisation

Vision: build highly

localised and performant

horizontal classified

marketplaces in African

key markets

Operations: operate on

existing tech platform

Best-practice transfer:

utilise know-how from the

largest classifieds players

in Switzerland, Scout.ch,

jobs.ch, and leaders in

CEE + Asia

DEALS

Mid-term monetisation

Vision: build market-

leading online deals

platforms

Operations: operating

within local economies as

online lead-generator,

enabling international

corporations and SMEs to

create brand awareness


group collaboration with

Swiss market leader

DeinDeal.ch

Local operations supported by international technology and know-how

Immediate to mid-term

monetisation

MARKETING

Vision: build Africa’s

leading full service 360

digital marketing agency

Operations: build-up local

teams to assist international

corporations Best-practice

transfer: highly relevant

role model within the group

with Ringier Atelier,

offering creative, cross-

media solutions to its

clients

CONTENT

Immediate monetisation

Vision: build the leading

online news &

entertainment platform

Operations: platforms

operating on Swiss

technology, allowing a

rapid business expansion


intra-group knowledge

exchange with Blick.ch to

support hyperlocal, in-house

editorial content teams



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LEADING MARKET POSITIONS AND ROOM FOR OPPORTUNITIES & GEOGRAPHICAL EXPANSION

#1 online news & entertainment platform

Senegal

Ghana

Nigeria

Tanzania

Kenya

#2

#1

#1

#1

#1

#1

#1

#1 online news & entertainment platform

#1

Ethiopia

Francophone African Hub

Anglophone / West African Hub

East African Hub

Future geographic expansion

#1 horizontal classifieds platform

#1

#1 online deals platform



#1 online deals platform

Full service digital marketing agency

Full service digital marketing agency

#1 real estate classifieds platform


18


LEARNINGS OUT OF 4 YEARS IN AFRICA



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37 76

147

239

380

571

764

2013 2014 2015 2016 2017 2018 2019

1. MOBILE FIRST

MOBILE VS. FIXED BROADBAND PENETRATION MOBILE DATA TRAFFIC (SUB SAHARAN AFRICA)

65% CAGR

in PetaBytes of mobile data traffic Subscribers in % of total population

While less than 0.5% of African people connecting via fixed broadband subscriptions, about 19% of the population has

mobile a mobile broadband connection, growing over 40% p.a. - twice as high compared to the global average

Source: Ericsson Mobility Report (June 2014)

0,50%

24%

44%

19%

64%

23%

Africa Europe Asia-Pacific

Fixed Mobile



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1. MOBILE FIRST



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Advertorial Video

Newsletter and Social Events

Branded sections of Pulse.ng

▪ Featured Category: e.g. “this page is brought to you by Jumia”

▪ Sponsored category: e.g. “travel category brought to you by…”

▪ Advertorial: Sponsored articles with full branded images

▪ Event coverage

▪ Content posted to Pulse homepage with event coverage including videos, pictures and articles

▪ Produced content: Stand-alone, professionally produced custom video of up to 5 minutes with shootings also offered

▪ With a newsletter reach of 0.5m+, the Pulse Nigeria newsletter is the best way to feature new products or services in Nigeria directly in readers’ inboxes

▪ With a social media reach of 1m+ on Facebook alone, the social channels of Pulse Nigeria are among the most powerful in the country

PULSE VIP NIGHT - incl. full branding, videos, pictures and article post on homepage

▪ Custom 15 minutes highlight clip

▪ Pre-event homepage article

▪ Post event coverage

▪ Social media

2. MONETIZE WHEREVER YOU SEE OPPORTUNITY



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3. MASS REACH BEFORE SPECIALISATION

24


THANK YOU!

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engaging new audiences in the mobile-first continent...

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