Key to digitization –M&A and asset developmentCapital Markets Day – Berlin, December 11, 2012

Dr Jens Müffelmann, Head of Electronic Media

Oliver Schäffer, Head of M&A / Strategy

2

“With regard to electronic media, Springer is completely underdeveloped ”

“... the chaotic web-sandbox of Springer...”

“Europe‘s largest press conglomerate – a mere internet midget . At least they have a strategy now“

Axel Springer about a decade ago

May 1999 May 2000 October 2000

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Source: comScore top 100 properties, October 2012

Digital reach in Europe today

European media peers unique visitors in million

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17.1

22.5

23.0

24.2

27.5

30.7

35.7

46.5

80.8

Digital Media: top-line / bottom -line

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201120102009200820072006

Revenues in €m

9M/2012

EBITDA in €m

201120102009200820072006 9M/2012

8231669M/12

9M/12

Consolidated figures, 2006-2011 based on Annual Reports, 2012 based on Q3 Report

Attack since 2006

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By acquisition 67Organic 90Divestments 8ΣΣΣΣ 149

By acquisition

Organic

2006 2007 2008 20102009 2011 2012

Strategic fit: where we can provide leverage

Proven and scalable business models

Clear path to profitability / profitable businesses

Experienced management / commitment

Reasonable valuation

Clear investment criteria

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Dec. 11, 2012 Key to digitization – M&A and asset development7

M&A digital majority acquisitions 2006-2011

7

Valuationfor 100%

EV/EBITDA

In €m

EBITDA 2011 (100%)

Purchase price

~1,550 ~200~1,250

~8×

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2006-2011: selling non-strategic assets, buying digital growth businesses

8

Purchase price

EBITDA effect

~1,250 €m

~200 €m

~1,000 €m

<50 €m

EBITDA effect acquisitions: EBITDA 2011 (100%), EBITDA effect divestments: EBITDA in last full fiscal year under AS ownership

Digital growth businesses

Non-strategicassets

Dec. 11, 2012 Key to digitization – M&A and asset development9

M&A activities 2012

9

Acquisitions Disposals

In €m

Other

Total

(75%) 215.0

(100%)

(100%)

(80%)

132.0

~50.0

127.5

~5.0

Axel Springer Digital Classifieds

Other

Total

(30%) 237.0

~15.0

Net invest: ~280~530 ~250

Ø 2012eEV/EBITDA

~11×

Price discipline at acquisition of growth companies Digital majority acquisitions 2006 - 2011

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At acquisition date: including sale of StepStone Solutions as negative purchase price; 2012e: benchmark: EV/EBITDA 2012e of European internet stocks currently at 11.4x (Source: UBS Internet Sector Update as of October 22, 2012)

EBITDA-Multiplepro rata

12×Bought at

fair valuation

At acquisition date

Leverage through performance

8×2011

Further positive development

<

2012e

7×

Our principles as digital shareholder

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Source picture: INTERTOPICS

No cultural clash

No colonial masters

Retaining founders / management

Realistic view on synergy potential

Maintaining growth momentum

Operational independency of management

Slim holding structure

Situational “short leash” / “long leash” management

Market position in acquisition year

2009:

2007:

(DE)

2009:

2006:

(UK)

(Europe)

(DE) #5

#2

#3

#2(DE) 2010: #3

Pushing for market leadership

Market position 2012

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Financial web applications

Finance portal

Infotainment portalWomen portal

Soccer community

Car and motor community

Affiliate marketing

Online prospectus / coupons

Affiliate marketing UK

Portfolio of market leaders

Real-estate marketplace

Price comparison

Job board

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Creating synergies through our network

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EXAMPLES

With Axel Springer

Among the assets

Corporate servicesDiscounted media campaigns Shared content and traffic

…

Jobs classifieds integration

Real-estate classifieds integration

Cross-integration of services

Prospectus integration

Real-estate classifieds integration

Performance marketing

Financial IT Systems

Legal, tax, M&A Marketing

Procurement HR

… ……

Networking and knowledge-sharing events

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Working Lunch Session “Facebook optimization”

Social Media Club & SEO workshop

Digital CTO Workshop

Digital CFO Event

Online Marketing Camp

Media Entrepreneurs initiative

Brown Bag Sessions

Hy Berlin

Silicon Curry

EXAMPLES

Digital CEO Summit

Digital Cup Volleyball …

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Strong post-acquisition development 2006-2012

16

+15%MarketCAGR since 2006

Revenues Ø CAGR since acquisition date +29%

+48%EBITDA Ø CAGR since acquisition date

Top 10 digital acquisitions 2006-2011, based on revenues

Market growth: Weighted market CAGR 2006-2012 based on ZenithOptimedia, PwC and HDE

Dec. 11, 2012 Key to digitization – M&A and asset development17

Case study: building global classifieds

17

Joining forces

Settingthe ground

Leveraging

Phase 1 Phase 2 Phase 3

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Phase 1: setting the ground around three core investments

18

2001 100% in PropertyGate

2002 association IVD (former RDM) acquired 25.1% stake; foundation/change of name to Immonet GmbH

2003 combining of sites www.rdm-immonet.de and propertygate.com to immonet.de

2006 100% in Immonet GmbH

2004 49.9% in StepStone Deutschland AG

2008 acquired in a first step 15% in StepStone ASA and increased its stake to 33.3%

2009 extended majority stake in StepStone ASA from 52.7% to 87.8%; mandatory offer to all remaining shareholders and squeeze-out / delisting

2010 sale of StepStone “Solutions” business unit

2010 acquired 12.4% stake in Seloger.com SA and launch of public tender offer

2011 successful completion of public takeover during re-opened offer; increased stake from 74.2 % to 98.7% and squeeze-out/delisting

2011 100% acquisition of Jobanova2010 majority acquisition

Umzugsauktion.de

2011 acquired 9.4% stake in iProperty.com and increased stake to 16.1%

2007 100% acquisition of Wohnfinder.de

2011 100% acquisition of a-Gites

Revenues and EBITDA 2011: consolidated figures

16Transactions

~800 €mTotal invest

~222 €mRevenues 2011

~68 €mEBITDA 2011

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30% 70%

Axel Springer Digital Classifieds GmbH

Phase 2: joining forces with General Atlantic

Axel Springerinvestments

General Atlanticdeal

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GA-Partnership shows significant value step-up in underlying assets

20

1,250 €mEnterprise value

460 €mEmbedded loan

790 €mEquity value

~800 €mPurchase prices and investments

~50 €mUtilized tax effects

~640 €mNet investment

~110 €mSale of StepStone “Solutions” business unit

+ ~100%

11.3%

Phase 3: leveraging and executing

30% 70%

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Axel Springer Digital Classifieds GmbH

Dec. 11, 2012 Key to digitization – M&A and asset development22

3 quarters – 3 countries – 3 market leaders

22

November 2012October 2012April 2012

Largest real-estate portalLargest online recruitment portal

Largest regional content and classifieds portal

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Classifieds: top-line / bottom -line

23

9M EBITDA margins

14% 35% 43%

Revenues in €m EBITDA in €m

9M/2012

9M/2012

20112010 20112010

9M/12

9M/12

235

102

Consolidated figures for Axel Springer Digital Classifieds

Digitization: Looking ahead

9M/2012 Our Vision2004

Print Print Print 50%35%2%Digital

DigitalDigital

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Pro forma for acquisitions (consolidated view: 34%)