09Annual Report
Contents
Foreword
Management Board
Axel Springer: Multimedially integrated
The Axel Springer share
2
6
8
30
Management Report of the Group and
Management Report of Axel Springer AG
32
Business model, structure, and market position 33
39
Strategy and success monitoring
43
Employees
47
Social responsibility
51
Business development and performance
77
Financial situation and balance sheet
79
Economic position of Axel Springer AG
81
Profit utilization proposal
81
Risk and Opportunities Report
86
Events after the balance sheet date
87
Outlook
91
Disclosures pursuant to Sections 289 (4),
315 (4) HGB and Explanatory Report pursuant
to Section 176 (1) (1) AktG
Declaration on Corporate Governance
pursuant to Section 289a HGB and
Corporate Governance Report
94
Report of the Supervisory Board
ullstein bild: Freedom
107
112
Consolidated Financial Statements
Auditor’s Report
Consolidated Statement of
Financial Position
Consolidated Statement of
Comprehensive Income
137
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity 138
132
133
134
136
Notes to the Annual Financial Statements
140
Boards
Glossary
182
184
Group Key Figures
Group Key Figures
Group Key Figures
Group Key Figures
in € millions
Revenues
2005
2006
2007
2008
2009
Change
yoy
2,391.5
2,375.9
2,577.9
2,728.5
2,611.6
– 4.3 %
International revenues
383.7
383.2
537.2
596.8
547.6
– 8.2 %
International revenues as percent of total revenues
16.0 % 16.1 % 20.8 % 21.9 % 21.0 %
Pro forma revenues Digital Media
543.5
569.0
4.7 %
Digital Media revenues as percent of total revenues (Pro forma)
18.8 % 21.0 %
EBITDA1)
EBITDA-margin1)
Consolidated net profit/loss
Consolidated net profit/loss, adjusted2)
Total assets3)
Equity3)
Equity ratio3)
Free cash flow
Net debt/liquidity
Earnings per share (in €)4)
Earnings per share, adjusted (in €)2)4)5)
Dividend (in €)6)
Year-end share price (in €)
413.6
433.9
470.0
486.2
333.7
– 31.4 %
17.3%
18.3%
18.2%
17.8%
12.8%
231.4
202.1
290.8
205.0
– 288.4
234.6
571.1
254.6
313.8
– 45.0 %
152.6
– 40.0 %
2,612.0
3,124.0
3,826.9
2,809.1
2,934.3
4.5 %
1,185.0
1,795.1
1,211.8
1,067.7
1,196.8
12.1 %
45.4%
57.5%
31.7%
38.0%
40.8%
220.2
327.2
7.33
6.79
1.70
233.9
477.4
9.13
6.88
3.50
238.7
219.7
231.3
5.3 %
– 743.1
– 369.5
– 193.0
-
– 9.70
18.54
10.19
– 45.0 %
7.88
4.00
8.55
4.40
5.13
– 40.0 %
4.40
0.0 %
108.00
136.45
98.00
51.39
75.05
46.0 %
Average number of employees
10,166
9,733
10,348
10,666
10,740
0.7 %
1) Adjusted for non-recurring effects and effects of purchase price allocations.
2) Adjusted for significant, non-operating items.
3) The figures as of December 31, 2008 were adjusted for the effects of the changed accounting method for pension commitments.
4) Diluted.
5) The adjusted diluted earnings per share for all years presented herein were calculated on the basis of the weighted average shares outstanding (diluted) in fiscal year 2009.
6) Dividend proposal for the fiscal year 2009.
Revenues 4.3 % below prior year
International and Digital Share more than 20 %
Double-digit EBITDA margin despite recession
in € millions
Circulation
Advertising
Other
264.7
1,248.1
296.9
1,138.5
International Revenues
as Percent of Total
Revenues
Digital Media Revenues
as Percent of Total
Revenues (Pro forma)
in € millions
EBITDA margin in %
17.8 %
486.2
21.9 % 21.0 %
21.0 %
18.8 %
12.8 %
333.7
1,215.8
1,176.2
2,728.5
2008
2009
2,611.6
2008
2009
2008
2009
2008
2009
Axel Springer is one of the leading integrated
multimedia print, online, and Web-TV companies
in Europe. The core of our business is not to print
on paper, but excellent journalism. Every medium,
whether print or digital, is subject to different
playing rules, but content quality is what always
counts. Our business has always been and will
always be about news, opinions and well-told stories.
By our networked processes and by transcending
media boundaries we are linking the different
worlds together.
2 Foreword
“We widened the lead over
our competitors, built on the
strength of our brands, and
actively promoted digitization.”
Dr. Mathias Döpfner
Chairman and Chief Executive Officer
It makes sense to weatherproof your house before the
Our strategy remains unchanged too, since 2001 already.
storm hits. And that is exactly what we at Axel Springer
We continued to pursue our stated goals with single-
have been done intensively in the last seven years, why
minded resolve in 2009: The expansion of our market
we have built up the digital business of the future and
leadership position in the German-language core busi-
reorganized our existing activities. The operating envi-
ness, internationalization, and digitization. A glance at the
ronment in 2009 was something of an acid test as to
news, which was full of reports about emergency short-
how strong Axel Springer AG really is. The degree to
term measures and desperate restructuring plans in the
which we passed this test is a matter for you, our share-
media industry, makes it clear that such goals were
holders, to decide.
rather the exception than the rule in 2009. Fortunately,
we at Axel Springer began to address the underlying
The media industry faced strong headwinds in 2009,
challenges a long time ago. For example, the disciplined
especially in the advertising market. Depending on the
cost management we have practiced for many years
survey, net advertising revenues plummeted 10 % to 12 %
made an important contribution to our bottom line in
worldwide and 7 % to 13 % in Germany. The Central
2009. And yet, our cost savings and restructuring efforts
Association of the German Advertising Industry has
were precisely targeted. Counter to the industry trend,
called it the “worst advertising slump in the history of the
the size of our workforce actually increased, by 0.7 %,
German Federal Republic.” And the circulation market
especially in the promising future business of digital
was under intense pressure, too.
media. I was especially pleased that numerous employ-
ees became shareholders of our company by taking
Surely, it would have been easier to reach a double-digit
advantage of the bonus share and share ownership
profit margin under more favorable conditions. In fact, we
programs. It is good to know that our employees are
set this goal for ourselves seven years ago, anticipating
bound to Axel Springer in an entrepreneurial partnership,
an economically healthier environment. But the employ-
particularly in these times, when creativity is more impor-
ees of Axel Springer AG achieved this goal in the midst
tant than ever.
of the worst financial and media crisis to date. We gen-
erated an operating profit (EBITDA) of € 333.7 million.
At last year’s annual shareholders’ meeting, I announced
Based on total revenues of € 2,611.6 million, that corre-
that Axel Springer intended to widen the lead over its
sponds to an EBITDA margin of 12.8 %.
competitors, build on the strength of our brands, and
actively promote digitization, even though it would not be
Amid this environment, the positive development of Axel
possible to match the record results of the prior year.
Springer’s equity ratio sent a rare, anti-cyclical signal,
A necessary prerequisite was the strict focus on our high
rising from 38.0 % in 2008 to 40.8 % in 2009. The divi-
reach and national brands. In light of this, it made sense
dend is intended to remain unchanged from 2008. The
to part with the company’s minority interests in regional
Management Board and Supervisory Board will propose
newspapers, sell the company’s youth magazines, and
to the annual shareholders’ meeting that the company
closely integrate the music titles with the WELT Group. In
pay a dividend of € 4.40 per share, again the highest
true anti-cyclical fashion, we launched a marketing cam-
dividend that Axel Springer has ever paid.
paign for BILD and WELT towards the end of 2009.
The first fruits of our reach-driven strategy are directly
was expanded to include women’s magazines (FORBES
measurable. Based on gross market shares in the German
WOMAN) and the Internet (FORBES online).
advertising market, our integrated marketing unit Axel
Springer Media Impact widened its lead significantly over
And that brings us to digitization. With revenues of
our competitors in the print media business. While the
€ 470.4 million, the Digital Media segment was the
next-biggest print marketer generated 34 % fewer reve-
Group’s third-biggest revenue contributor in fiscal year
nues than Axel Springer Media Impact in 2008, that lead
2009, for the first time ever. On a pro-forma basis (in-
widened to 45 % in 2009. BILD defied the general trend
cluding the full-year consolidation of our acquisitions
of the gross print advertising market impressively: While
StepStone and Digital Window), the revenues of the
the latter declined by 6.3 % in 2009, BILD's advertising
Digital Media segment amounted to € 569.0 million.
revenues rose by 6.5 %. Especially our strong revenue-
Thus, Axel Springer generates one of every five euros in
producing titles expanded their reach in their respective
its online business. That is an extremely high percentage,
markets, including BILD am SONNTAG (+ 4.2%), BILD
compared to our competitors’ figures.
der FRAU, AUTO BILD, SPORT BILD (each by + 1 % to
2 %), TV DIGITAL (+ 1.3 %), and DIE WELT (+ 2.6 %).
We achieved such impressive results on the basis of a
From a cross-media perspective, the WELT Group with
simple, clearly defined strategy. In the digital world, when
DIE WELT, WELT am SONNTAG, and WELT ONLINE
starting up or acquiring a business, we focus on three
jumped out ahead of other German premium newspa-
kinds of businesses:
pers and their online portals in terms of range. Thanks to
the rapid growth of its unique visitors, Bild.de rose to the
status of clear market leader, in terms of reach, among
print-based German news portals for the first time in
2009. In the circulation market, our magazines in particu-
lar posted significant gains. Thus, Axel Springer picked
up market shares (based on revenues) in the segments
of automotive titles (+ 3 %), computer titles (+ 2.4 %), and
sports titles (+ 1.2%). In connection with these strong
results, the profitability of our print business was unusu-
ally high: The EBITDA margin of our Newspapers
National segment was 20.1 %, that of our Magazines
National segment 10.6 %.
We also built on our strong brands in the international
business. As part of a joint venture in Poland, we com-
bined our newspaper DZIENNIK, known for its political
reporting, with GAZETA PRAWNA, which is known es-
pecially for its expertise in business and legal topics. In
Russia, the prominence of the FORBES Russia brand
(cid:132) Marketplaces
(cid:132) Performance-based marketing platforms
(cid:132) Market-leading content portals.
You may recall my announcement of a year ago, when I
stated that we were not contemplating any transforma-
tional M&A activities, but rather a number of smaller,
logical acquisitions that fit in seamlessly with our portfolio
and online strategy. And that is just what we did.
For example, we further extended our position in the
business of marketplaces, in which idealo and immonet
were already strong players, by acquiring a 100 % inter-
est in StepStone ASA, the leading European provider of
online job exchanges and talent-management software.
In the business of online performance-based marketing,
our subsidiary zanox, in which we hold a majority interest,
is already the market leader on the European continent.
Having acquired Digital Window, a leading affiliate net-
work in Great Britain, together with our partner
PubliGroupe, we have now tapped the key British market
When I was recently asked to reflect on 2009, I an-
for the next phase of international expansion. Finally, we
swered spontaneously that it was perhaps the best year
made good progress last year in monetizing the high
of my professional life. Why? Because I believe that our
reach of our digital content portals, as the third pillar of
efforts of the last few years are paying off; and I sense
our digital strategy. In consideration of the fact that ad-
tremendous motivation among our employees to con-
vertising revenues are volatile and insufficient in the long
tinue on the path we have set. In that sense, 2009 was
term, it has long been clear to us that we will need addi-
indeed a happy year. On top of that, it was an especially
tional revenue streams in the digital world as well. We are
important and joyful year for us Germans. We at Axel
convinced that users are ready to pay for attractive con-
Springer were fortunate to celebrate the twentieth anni-
tent in any distribution channel, whether print, online, or
versary of the fall of the Berlin wall in the presence of the
mobile. In 2009, therefore, we initiated a paradigm shift
three great trailblazers of German unity: Helmut Kohl,
by launching a premium-content initiative based on inno-
George H. W. Bush, and Mikhail Gorbachev. On that
vative paid offerings. We want to attract and retain users
day, November 9, 1989, the vision expressed by Axel
with attractive content and easy billing arrangements. It
Springer thirty years earlier when the cornerstone for our
thrills me to have seen how this initiative unleashed a
publishing headquarters in Berlin was laid became true:
veritable surge of creativity among our employees. Prod-
ucts like the BILD Super Manager and the “My Club”
application, as well as the subscription models for the
“I believe in a Germany with its capital in Berlin. Not
only do I believe in that, I yearn for it to happen.”
regional online portals of HAMBURGER ABENDBLATT
and BERLINER MORGENPOST, are innovative experi-
Sincerely yours,
ments that completely vindicate our reading of the mar-
ket. Ending the year on a high note, we launched our
paid iPhone applications for BILD, DIE WELT, and B.Z.,
which attracted more than 100 thousand paying users
already by the end of the year.
With regard to 2010, we anticipate stable or slightly
higher consolidated revenues and a roughly 10 % in-
crease in our consolidated EBITDA. In this regard, it is
important to note that potential revenues from our pre-
mium-content campaign are not included in the 2010
budget. Thus, if it turns out that users are prepared to
pay for premium content on a sustained basis, we will
reap additional gains. However, we do not wish to create
overly high expectations in this regard because we view
this business more as a long-term opportunity.
Mathias Döpfner
6 Management Board
Dr. Mathias Döpfner
Chairman and Chief Executive
Officer Subscription News
papers and International
Born 1963, journalist.
Career milestones:
Frankfurter Allgemeine Zeitung,
Gruner+Jahr
Chief Editor Wochenpost,
Hamburger Morgenpost
and DIE WELT.
Member of the Management
Board since 2000, Chairman
since 2002.
Rudolf Knepper
Vice Chairman
Printing, Logistics, and HR
Born 1945, master’s degree
in engineering and Master’s
degrees in engineering and in
business/engineering.
Career milestones
(since 1973 with Axel Springer):
Head of Corporate Planning
Office for Printing;
Manager of the
Hamburg Printing Plant;
Head of Production
Newspaper Printing;
Member of the Management
Board since 1994,
Vice Chairman since 2002.
Management Board
7
Lothar Lanz
Chief Operating Officer and
Chief Financial Officer
Born 1948, master’s degree
in commerce.
Career milestones:
Bayerische Hypotheken und
Wechselbank AG; Member of
the Executive Board at HSB
HYPO ServiceBank AG;
Member of the Executive Board
at Nassauische Sparkasse;
Member of the Executive Board
and Chief Financial Officer at
ProSiebenSat.1 Media AG.
Member of the Management
Board since 2009.
Dr. Andreas Wiele
BILD Group and Magazines
Born 1962, lawyer.
Career milestones:
Editor, Hamburger Morgenpost;
Head of Publishing Capital and
Geo, Gruner+Jahr, Paris/France.
Executive Vice President and
Chief Operating Officer of
Gruner+Jahr USA Publishing,
New York.
Member of the Management
Board since 2000.
8 Multimedially integrated
Axel Springer is one of the leading integrated
multimedia print, online, and Web-TV com-
panies in Europe. We transfer our print brands
and content to digital distribution channels and
supplement our portfolio with online portals.
New print titles were also launched in 2009,
because at Axel Springer, multimedia means
offering readers, users, and advertising custo-
mers the medium which is best for them. The
integrated newsroom and the advances we have
made in paid content on the mobile Internet are
just two of the following examples illustrating
our networked and cross-media operations.
Axel Springer: Multimedially integrated
9
Axel Springer unites the widest variety of media, brands,
and talent. Whether they’re writers or marketers, designers
of print, online, or Web-TV, the people on the following
pages have one thing in common: they all want to be actively
involved in shaping the future of media with passion and
creativity. As do 10,730 other colleagues we can’t show
here due to space constraints.
“Throughout the media industry, paid online content and services
have been the subject of discussion since 2009. Axel Springer is one
of the first companies to look for even better economic prospects in
approaching the digital world. Our apps for the iPhone provide
unique added benefits for users. The ‘premium’ concept is critical—
we offer our users exclusive content, services and functions they
won’t find anywhere else.”
Donata Hopfen, Managing Director, BILD digital
Premium Initiative
Axel Springer is committed to digitization, continually offering more of
its content through mobile applications. The presence of new content
and service elements and their striking translation into the iPhone
format with all its technical possibilities has to offer a genuine incen-
tive to users, one that they’re willing to pay for. The BILD and WELT
applications (“apps”) for the iPhone represent the first-ever mobile
service programs available exclusively under subscription models.
Several creative and lucrative ideas for new, innovative iPhone apps
are originating in-house, from the employees of Axel Springer AG.
“ With the acquisition of StepStone A.S.A. as a leading international
provider of career websites and talent management systems, Axel
Springer AG became even more international and digital in 2009.
After years of successful collaboration in Germany, we now can make
use of our joint strength in the whole of Europe.”
Ralf Baumann, Member of the Management Board, StepStone
StepStone
Axel Springer AG acquired an equity interest in the online job exchange
StepStone Deutschland AG already back in 2004. Through this combi-
nation of print and online job notices, Axel Springer extended its strategic
exposure to yet another important classified ads market. In 2009, Axel
Springer used its financial maneuvering room for investments, acquiring
the international parent company StepStone A.S.A., in order to exploit the
excellent prospects for dynamic growth in the European online job market.
“Originally, we wanted to reach the top position by the summer of
2011 at the latest; but as it turned out, we already became the leading
German news portal in November 2009. Naturally, I’m especially
pleased that our offering of online videos has made a big contribution
to this success. Our team produces 1,000 reports and features for
Bild.de every month.”
Daniel Durst, Head of Bild.de Web-TV
The online and mobile portals of the BILD family were extraordinarily
successful in 2009. Thanks to their significantly upgraded and intensively
linked information and entertainment offerings, they reached significantly
Bild.de
more online users than in the prior year. Having increased its unique visitors
–
+
00:47 / 02:30
by 63.2 % to 5.8 million, Bild.de took the top rank among online portals of
German print media for the first time, while also expanding its position as
Germany’s biggest news and entertainment portal.
“In 2009 we completely reworked the ad strategy for BILD—
away from constantly changing sales-oriented themes and toward
a broad-based, long-term image campaign. The goal of the ad
initiative is primarily to enhance BILD’s credibility. And we
succeeded in a very brief period. Just a few months later we had
measurable results on the BILD image enhancement, especially
among non-readers and opinion leaders.”
Tanja Hackner, Head of General Advertising, BILD publishing group
BILD
Especially in the fourth quarter of 2009, Axel Springer
successfully utilized its strong financial position to invest
counter-cyclically in intensive marketing programs: the
new cross-media ad campaign produced an enormous
increase in the image values of BILD. Significant improve-
ments were detected, particularly among opinion leaders
and non-readers. The print ads are interlinked with the
website www.bild.de/fakten, where more information and
of course the campaign’s TV ads can be found.
“The introduction of HÖRZU WISSEN demonstrated the fact
that traditional print products can still be successful within a
multimedia group. In this new publication, the editorial staff
built on HÖRZU’s wide range of topics to produce an extremely
attractive and worthwhile new publication, making full use of
the great potential that already existed for knowledge magazines.
Thanks to our marketing campaign, we gained numerous regular
readers even before the launch.”
Christian Hellmann, Editor-in-chief, program guides
HÖRZU WISSEN
HÖRZU, the TV program guide in Germany with the
longest tradition, has been continually modernized over
the years to meet the expectations of its demanding
readers. Again in 2009, it successfully emphasized
its prominent place as the No. 1 weekly German TV
program guide in the high-price segment.
“WELT KOMPAKT is the newspaper for the Internet age. For years
now, it has been the innovation leader with regard to the successful
linkage of print and online media. At the end of 2009, we launched
a nationwide marketing campaign to instigate a debate, in a very
deliberate and pointed way, on the question of how the Internet has
already influenced and changed us. The starting point was a funda-
mental shift of focus on our part: WELT KOMPAKT no longer sees
itself as competing in the market against other daily newspapers alone.
Instead it appeals to younger professionals, many of whom hardly read
newspapers anymore and are turning to online news sources instead.
When they see WELT KOMPAKT they can say, ‘Yes, now we’re ready
for a new kind of newspaper’.”
Johannes Boege, Head of Marketing, WELT Group
WELT KOMPAKT
WELT KOMPAKT is the only national daily newspaper to offer a daily
Internet section. The newspaper is pressing forward with networking
and interaction with social networks like Twitter, Facebook, YouTube
and Google Wave. When it comes to the integration of print and online
media, this young medium is a think tank, laboratory and trendsetter
all at the same time.
“ We had already introduced a performance-based model as a
complement to traditional online marketing nine years ago. With
zanox, advertising customers only pay when consumers don’t just
click on their ads but actually buy their products. Our sophisticated
statistical functions help our customers place their advertising
messages in exactly the right places for producing the greatest impact.
That’s how we emerged as winners from the crisis of 2009.”
Christian Kleinsorge, Member of the Management Board, zanox
zanox
Majority-owned by Axel Springer, zanox is already the market leader
in affiliate marketing on the European continent. Through its interest in
Digital Window Ltd., Axel Springer also began opening up the important
British market in 2009 as the next step of its international expansion.
Axel Springer was the first major publishing company to position itself in
this fast-growing market, which holds considerable long-term strategic
importance as a complement to traditional advertising models.
“ We completely modernized our editorial staff structures in 2009.
The section leaders and editors are responsible for both print and
online, and we have channel managers for the website and deputy
editors for the newspaper. The channel managers update the content
of their respective sections at abendblatt.de every half hour. At the
same time, the deputy editors produce a premium-quality newspaper
six days a week. We are a fully integrated multimedia editorial staff
that produces online and in print.”
Anika Riegert, Head of “Magazine” at HAMBURGER ABENDBLATT
HAMBURGER ABENDBLATT
In line with the formula “HAMBURGER ABENDBLATT 3.0,”
Germany’s biggest regional newspaper has undergone a rigorous
modernization process. The strategy can be formulated as follows:
Go more in-depth locally, expand regionally, boost nationwide
importance—and that in all distribution channels: print, online,
and mobile. HAMBURGER ABENDBLATT will continue its great
success story by blending tradition with innovation.
“Quite a bit happenend in 2009 – our first full year as a
majority-owned subsidiary of Axel Springer. For example, we
now offer online games in seven languages. Naturally, being
part of an internationally active media group was a big help
in that regard. Our cooperation with computerbild.de was
also instrumental in helping us attract more than 2.8 million
new users in one year and to remain one of Europe’s fastest-
growing game publishers.”
Patrick Streppel, Member of the Management Board, Gamigo
gamigo.de
Axel Springer has held an equity interest in Gamigo AG since 2000 and
a majority interest since the end of 2008. Gamigo is one of the leading
German publishers and operators of online games which can be played
by thousands of people at the same time and which finance themselves
through the sale of virtual objects.
“With FORBES WOMAN we primarily address the large number
of women in Russia who are very successful in business and their
careers—a very interesting and currently underdeveloped target
group. We’ve started a new chapter in the FORBES success story on
the Russian market with FORBES WOMAN in 2009.”
Irina Mihailovskaya, Editor-in-chief, FORBES WOMAN
Axel Springer Russia
Axel Springer Russia has been publishing the Russian edition of the business
magazine FORBES since 2004, reaching about 820,000 readers each month
with an average circulation of nearly 80,000 copies. Another component of
the brand’s expansion was the launch of the website www.forbesrussia.ru,
also in 2009. In late 2008 the successful cooperation between Axel Springer
and Forbes Inc. was extended to 2020. Furthermore, Axel Springer Russia
publishes the the weekly news magazine NEWSWEEK, the Russian edition of
COMPUTER BILD, and the celebrity news magazine OK!
30 Annual Report 2009 Axel Springer AG
30
The Axel Springer Share
Indices outperformed
The price of the Axel Springer share increased by 46.0 %
in 2009. It closed the year at € 75.05 (year-end 2008:
€ 51.39), which was not far from its high for the year of
€ 78.00, reached on November 18, 2009. The share
price reached its low for the year on March 19 (€ 46.94).
Including the dividend paid in May 2009, Axel Springer’s
shareholders earned a total shareholder return of 54.6 %.
At the close of trading on the last trading day of 2009,
the market capitalization of the company’s widely held
shares amounted to € 580.5 million. Consequently, the
Axel Springer share was by far the highest-valued share
in the SDAX, with an index weighting of 7.0 %. The
company’s overall market capitalization amounted to
€ 2.48 billion. In addition, the Axel Springer share was
more actively traded in 2009, with an average daily trad-
ing volume of 9.5 thousand shares, which was 17.7 %
higher than the corresponding figure for 2008.
Index Comparison Total Market
Axel Springer
MDAX
DAX
SDAX
160
140
120
100
80
Share Information
in €
Earnings per share (basic)
Earnings per share (diluted)
Dividend1)
Year-end share price
Highest price
Lowest price
Average price
2009
10.20
10.19
4.40
75.05
78.00
46.94
63.35
2008 Change
18.58
– 45.1 %
18.54
– 45.0 %
4.40
0.0 %
51.39
46.0 %
94.73
– 17.7 %
42.50
10.4 %
68.03
– 6.9 %
01|01|09
12|31|09
1) Dividend proposal for the fiscal year 2009.
The Axel Springer share significantly outperformed its
benchmark indexes. While the SDAX gained 22.6 % for
the year, the DJ-EuroStoxx Media Index, which tracks
the most important European media shares, achieved
only a relatively moderate gain of 5.3 %.
Index Comparison Media
Axel Springer
Prime Media
DJ EuroStoxx Media
160
140
120
100
80
01|01|09
12|31|09
Record dividend resolved
A total of 260 shareholders attended the annual share-
holders’ meeting of Axel Springer AG in Berlin on April 23,
2009. With 83.1 % of the shares present or represented,
the management proposals were adopted with majorities
of more than 98 % in every case. One such proposal
concerned the re-election of the Supervisory Board of
Axel Springer AG.
In accordance with the corresponding resolution of the
annual shareholders’ meeting, a dividend of € 4.40 (PY:
€ 4.00) per qualifying share was paid on April 24, 2009.
The dividend corresponded to a distribution of
€ 130,603,699.60 from the unappropriated net profit of
Axel Springer AG. The balance of € 14,508,300.40 was
appropriated to the other retained earnings. The com-
pany’s treasury shares do not qualify for dividends.
The Axel Springer Share 31
Investor Relations intensified
Shareholder structure unchanged
We further intensified our relations with investors and
analysts in 2009. We presented Axel Springer’s business
development and strategy at a total of nine conferences,
each of which was followed by numerous meetings with
investors, and on eleven road shows.
The shareholder structure did not undergo a significant
change in 2009. The free float rose from 23.1 % at the
end of 2008 to 23.5 % at the end of 2009, while the
proportion of treasury shares declined from 9.9 % to
9.6 %.
In the first quarter, we participated in the German In-
vestment Seminar of Dresdner Kleinwort in New York,
the German Investment Conference of Cheuvreux in
Frankfurt am Main, and the Merrill Lynch All Stars Con-
ference in New York. In the second quarter, we partici-
pated in the Société Générale European Mid & Small
Caps Conference in Nice, the LBBW German Telco &
Media Forums in Zurich, and the Deutsche Bank German
& Austrian Corporate Conference in Frankfurt. Among
the notable events in the third quarter, we participated in
the JP Morgan Media CEO Conference in London, the
Société Générale 3rd Pan European Conference in New
York, and a road show of Deutsche Bank in London. In
the fourth quarter, finally, we presented the company at
the Morgan Stanley TMT Conference in Barcelona. Road
shows were held in the financial centers of Frankfurt am
Main, New York, London, Paris, and Dublin. Our presen-
tations were consistently met with great interest by insti-
tutional investors and analysts.
We held telephone conferences on the occasion of the
publication of all our financial reports. These tele-confer-
ences were broadcast live on our website, where they
are additionally available as an audio webcast. The pres-
entations used at the investor conferences and road
shows are also available for download on the company’s
website.
Shareholder Structure
Axel Springer Gesellschaft für Publizistik
Dr. h. c. Friede Springer
Axel Springer AG
Deutsche Bank
Free float
23.5 %
8.4 %
9.6 %
7.0 %
51.5 %
Information on Listing
Share type
Registered share with restricted
transferability
Stock exchange
Frankfurt (official market)
Stock exchange segment
Security Identification Number
Prime Standard
550 135, 575 423
At the end of 2009, Axel Springer was regularly covered
by eight research firms. Landesbank Baden-Württemberg
and Commerzbank initiated coverage of Axel Springer
with buy recommendations in 2009. On the other hand,
Dresdner Kleinwort and Main First discontinued their
coverage.
ISIN
Reuters
Bloomberg
DE0005501357, DE0005754238
SPRGn.F
SPR GY
32 Annual Report 2009 Axel Springer AG
32
Management Report
of the Group and
Management Report
of Axel Springer AG
General assessment of the Group’s
business performance and results in
2009
The Group’s business performance in 2009 basically
confirmed our muted expectations for the year. In
line with the forecast we published in the spring of
last year, the Group’s total revenues for 2009 were
lower than the prior-year figure as a result of the for-
midable market stresses in Germany and abroad.
Despite the stabilization of the overall economy in the
second half of 2009, the press distribution and adver-
tising markets still showed no clear signs of economic
revival.
Considering the difficult market environment, the
4.3 % decrease in consolidated revenues can be seen
as a success. By continuing to pursue its cross-media
business model with unabated commitment, Axel
Springer performed much better than the overall
market. Having sustained only relatively modest
revenue declines in the German market (while gen-
erating slightly higher circulation revenues in the
Newspapers National segment), Axel Springer rein-
forced its dominant market position and proved that
a company with high-reach media can generate sta-
ble revenues even in times of economic crisis. Despite
substantial revenue declines, Axel Springer generated
positive results on its international print media as well;
a testament to the successful cost management exer-
cised in the international business units. The Digital
Media segment again generated strong growth and
underscored its importance for the Group by doubling
its net income contribution over the previous year.
At ¤ 333.7 million, Axel Springer’s earnings before
interest, taxes, depreciation, and amortization
(EBITDA) in 2009 was well below the record prior-
year figure (PY: ¤ 486.2 million) – as expected and
projected. The Group incurred significantly higher
restructuring and marketing expenses in 2009 in its
efforts to make the organization even more efficient,
enhance competitiveness, and boost profitability. The
EBITDA margin came to 12.8 % (PY: 17.8 %).
The consolidated net income amounted to
¤ 313.8 million as compared with ¤ 571.1 million
in the previous year. The figures for both years
included significant non-operating effects, such as
the sale of regional newspaper investments in 2009
and the sale of the ProSiebenSat.1 Media AG in-
vestment in 2008. Adjusted for these and other
non-operating effects, the consolidated net income
amounted to ¤ 152.6 million (PY: ¤ 254.6 mil-
lion). The earnings per share came to ¤ 10.19 (PY:
¤ 18.54). Adjusted for significant non-operating
effects, it was ¤ 5.13 (PY: ¤ 8.55). At the annual
shareholders’ meeting to be held on April 23, 2010,
the Management Board and Supervisory Board will
propose distributing a dividend of ¤ 4.40 per quali-
fying share (PY: ¤ 4.40).
Outlook for 2010
In 2010, Axel Springer will continue to pursue its three-
fold strategy of expanding the market leadership position
in the German-language core business, and advancing
the process of internationalization and digitization. The
consequential effects of the global recession will still be
felt in the press distribution and advertising markets in
2010, especially considering the fact that the markets
have begun to stabilize on a comparatively low level.
For the full year 2010, we anticipate stable to slightly
higher revenues, with revenue growth in the low single-
digit percentage range. While we expect lower circula-
tion revenues, advertising and other revenues should be
higher. We expect the decline in the print business to be
offset by rising revenues in the digital business.
As a result of operational improvements, positive effects
from restructuring measures, and the continued prac-
tice of strict cost discipline in all areas of the Group, the
consolidated EBITDA for the full year 2010 is expected
to be around 10 % higher than the corresponding prior-
year figure.
Management Report of the Group and Management Report of Axel Springer AG 33
Business model, structure, and market
position
Introductory remarks
The following combined management report for Axel
Springer AG and for the Group contains statements
about the economic situation and business performance
of the Axel Springer Group. These statements are also
largely applicable to the development of Axel Springer AG.
Additional information on the economic situation of the
parent company Axel Springer AG is provided in a sepa-
rate chapter.
For the sake of enhanced comparability, the operating
earnings indicator EBITDA has been adjusted for non-
recurring effects and for the effects of purchase price
allocations.
Business activities
Founded in 1946 by the publisher of the same name,
Axel Springer today is the biggest newspaper publisher
and the third-biggest magazine publisher in Germany. It
is also one of Europe’s leading media companies. The
core competence of Axel Springer is excellent journalism –
up-to-date, informative, and entertaining – in newspa-
pers, magazines, and digital media.
Axel Springer operates across all media. The broad
spectrum of media encompasses established multimedia
brand families like the BILD Group and the WELT Group
along with high-circulation regional newspapers, TV
program guides, computer magazines, automotive
magazines, sports magazines, and women’s magazines,
online portals, and offerings, up to TV and radio stations.
In the Digital Media segment, our core competence also
extends to online marketplaces and performance-based
online marketing. Thus, the Group’s portfolio covers the
information needs of a wide range of interest groups.
Axel Springer’s business is international. We reach
large portions of Europe’s population through our cross-
media activities. Our market position is especially strong in
Germany, where our roughly 70 newspapers and maga-
zines reach about 53.1 % of the population aged 14 years
and over. Based on all the titles tracked by the German
circulation research institution IVW, Axel Springer holds
19.0 % of the German market. In addition, the Group pub-
lishes more than 160 publications outside of Germany. On
top of that, the Group operates more than 80 online sites,
and holds investments in TV and radio broadcast compa-
nies in Germany and abroad. All together, Axel Springer
maintains a presence in 36 countries. Thanks to their high
quality and extraordinary reach, Axel Springer’s informa-
tion and entertainment products also provide attractive,
cross-media advertising spaces.
Axel Springer is value-oriented and responsible. Its
core values are creativity, entrepreneurship, and integrity.
These values represent the basis of Axel Springer’s
corporate culture. They provide guidance to the Group’s
highly motivated and highly qualified employees as they
pursue the Group’s business strategy. The strategic
priorities are to extend the Group’s leadership position in
the German-language core business and advance the
process of internationalization and digitization, making
Axel Springer one of the leading integrated multimedia
companies in Europe, offering print, online, and web-TV
products.
Business locations, equity holdings
The Group’s headquarters is located in Berlin. It oper-
ates publishing locations in other German cities like
Hamburg and Munich, for example, as well as numer-
ous other business locations in large metropolitan cen-
ters of Europe. At December 31, 2009, the Group com-
prised some 129 fully consolidated companies, including
about 76 companies outside of Germany. The consoli-
dated shareholdings of the Group are listed in Section (44)
of the notes to the financial statements.
Segments
Axel Springer’s business activities are assigned to one
of the following five segments: Newspapers National,
Magazines National, Print International, Digital Media,
and Services/Holding. Thus, the principal elements of the
Group’s business strategy (market leadership in the core
business of German-language media, internationalization,
and digitization) are presented without overlaps in the
most transparent way possible.
34 Annual Report 2009 Axel Springer AG
Segments
Axel Springer Group
Newspapers
National
Magazines
National
Print
International
Digital
Media
Services/
Holding
Newspapers National
German newspapers published in Germany (along
with the free advertising papers) are combined in the
Newspapers National segment. They are classified as
newsstand and subscription newspapers on the one
hand, and as regional and national newspapers on the
other (see graph).
Newsstand newspapers: Based on paid circulation,
Europe’s biggest daily newspaper BILD together with the
Berlin B.Z. holds 80.6 % of the market for German news-
stand papers, making it the market leader by a wide
margin. Furthermore, B.Z. is the No. 1 newspaper in the
Berlin market.
Portfolio Newspapers National (Selection)
Newsstand Newspapers
Subscription Newspapers
National
Regional
National
Regional
BILD
BILD am
SONNTAG
B.Z.
B.Z. am
SONNTAG
DIE WELT
WELT
KOMPAKT
WELT am
SONNTAG
HAMBURGER
ABENDBLATT
BERLINER
MORGENPOST
Subscription newspapers: With a market share of
17.0 % based on paid circulation, the daily newspaper
DIE WELT (including the tabloid-format WELT KOMPAKT)
is the third-biggest premium newspaper in Germany.
With a market share of 38.8 %, the regional subscription
newspaper HAMBURGER ABENDBLATT is the biggest
subscription newspaper in Hamburg and the surrounding
area, while BERLINER MORGENPOST is the second-
biggest subscription newspaper in Berlin.
In the segment of national Sunday newspapers, BILD am
SONNTAG and WELT am SONNTAG are the clear lead-
ers, with an 85.7 % share of the circulation market.
Magazines National
With a portfolio comprising almost 40 titles, Axel Springer
is the third-biggest magazine publisher in Germany, both
in terms of average paid circulation and advertising mar-
ket share. Axel Springer holds leading positions in all key
segments of the market.
Portfolio Magazines National (Selection)
TV Program Guides
and Womens’
Magazines
Computer,
Automotive, and
Sports Magazines
Axel Springer
Financial Media
TV Program Guides
Automotive
Finance
HÖRZU
TV DIGITAL
FUNK UHR
AUTO BILD
AUTO TEST
AUTO BILD ALLRAD
EURO
EURO
am SONNTAG
Women
Computer
BILD der FRAU
FRAU von HEUTE
COMPUTER BILD
COMPUTER BILD
SPIELE
Sports
SPORT BILD
TV program guides and women’s magazines: The
biweekly TV DIGITAL is the highest-circulation TV
program guide in the high-price segment. HÖRZU is
Germany’s No. 1 weekly TV program guide in the high-
price segment. With a 30.6 % share of the circulation
market, BILD der FRAU is the leading German
women’s magazine.
Nearly all the Group’s computer, automotive, and
sports magazines are part of the BILD family of brands.
COMPUTER BILD, AUTO BILD, and SPORT BILD are
the leading publications of their kind in Europe. Axel
Springer also publishes numerous specialty titles, which
are likewise market leaders in their respective segments.
The Group’s main business magazines are the
monthly magazine EURO and the weekly EURO am
SONNTAG.
Management Report of the Group and Management Report of Axel Springer AG 35
Print International
Internationally, Axel Springer publishes more than 160
newspapers and magazines through its own subsidiaries
and joint ventures, and through granting licenses. The
Group’s international activities are focused on the mar-
kets of eastern Europe. In western Europe, the Group’s
publishing activities are concentrated in the countries of
Switzerland, Spain, and France. AUTO BILD is the
Group’s biggest international brand family.
Portfolio Print International (Selection)
Poland
Switzerland
Hungary
France
4 Newspapers
1 Newspaper
10 Newspapers
10 Magazines
14 Magazines
14 Magazines
38 Magazines
Further Markets: Spain, Russia, Czech Republic, Romania
Axel Springer is represented in Poland with 14 maga-
zines and four newspapers. The most important of these
are the leading newsstand paper FAKT, the country’s
only daily sports newspaper PRZEGLAD SPORTOWY,
and the newspaper DZIENNIK GAZETA PRAWNA, which
is published by a joint venture (see page 55). With a
market share approaching 36.6 % of national daily news-
papers based on paid circulation, Axel Springer Polska is
the biggest newspaper publisher in Poland with its titles
FAKT and PRZEGLAD SPORTOWY.
In Switzerland, Axel Springer publishes the business
newspaper HANDELSZEITUNG and 14 magazines. It is
the market leader in the categories of business and
financial magazines, and TV program guides. The busi-
ness magazine BILANZ and the newspaper HANDELS-
ZEITUNG are among the most-read business publica-
tions in Switzerland. Axel Springer is very well posi-
tioned in the category of general-interest magazines
through its title BEOBACHTER, and also in the cate-
gory of TV program guides through the titles TELE and
TV STAR.
In Hungary, Axel Springer publishes 38 magazines and
ten daily newspapers. Based on paid circulation, Axel
Springer is the country’s second-biggest publishing
company, with a market share of 20.9 %. Axel Springer
is also the market leader in the categories of TV program
guides, regional newspapers, and business newspapers,
as well as living, automotive, cooking, and puzzle maga-
zines.
In France, Axel Springer publishes a total of ten TV
program guides, women’s magazines, lifestyle maga-
zines, and automotive magazines; of that number, five
titles are published in a joint venture with the Mondadori
Group. The most important titles are the TV program
guide TELEMAGAZINE, the cooking magazine VIE
PRATIQUE GOURMAND, and the automotive magazine
AUTO PLUS.
In Spain, where the Group publishes a total of twelve
magazines, Axel Springer is the market leader in the
categories of video game and computer magazines.
Furthermore, AUTO BILD ESPAÑA and AUTO BILD 4x4
are the leading publications in the category of automotive
magazines.
In Russia, Axel Springer publishes four magazines,
including the business magazine FORBES, NEWSWEEK,
and the computer magazine COMPUTER BILD. In No-
vember 2009, moreover, we purchased the G+J portfolio
in Russia, including the titles GEO, GALA BIOGRAFIA,
GEO TRAVELLER, and GEOLENOK (see page 55).
In the Czech Republic, Axel Springer publishes seven
magazines and is the market leader in the category of
automotive magazines.
In Romania, Axel Springer holds a 40 % equity interest in
Edipresse AS Romania and publishes a total of 13 maga-
zines.
Digital Media
The Digital Media segment comprises the Group’s
online activities in Germany and abroad, as well as its
activities and investments in the TV and radio sector.
With an average of 28.7 million users per month (gross
reach, unique visitors according to comScore), Axel
Springer is a leading player in the digital media business.
36 Annual Report 2009 Axel Springer AG
Portfolio Digital Media (Selection)
Content portals
Marketplaces
Bild.de
auFeminin.com
gamigo.de
autobild.de
welt.de
computerbild.de
wallstreet:online
Amiado Group
transfermarkt.de
abendblatt.de
stepstone.de
(Jobs)
immonet.de
(Real estate)
idealo.de
(Price comparison)
autohaus24.de
(Cars)
buecher.de
(Books, audio, photo)
Marketing
Financial Media
zanox
Digital Window
eprofessional
Content portals: Bild.de is the highest-reach informa-
tion and entertainment portal in the German web, and
its video portal is one of the leading moving-image plat-
forms in Germany. BILDmobil, the biggest mobile infor-
mation portal in Germany, is visited more than 4.5 million
times a month on average. WELT ONLINE is the leading
online news site of all the German premium newspapers.
The Digital Media segment also includes the highly fre-
quented online sites of the Group’s regional newspapers
and magazines in Germany, as well as those of the inter-
national print titles. The online and mobile activities of the
print brands are complemented by digital brands such as
auFeminin.com, the first choice for online information on
the subject of fashion, beauty, and lifestyle in Europe.
Other digital brands include the soccer community trans-
fermarkt.de, the online games provider gamigo.de, the
finance portals finanzen.net and wallstreet:online, the
Group’s student and leisure portals, and its investment in
Motor-Talk, the biggest European community for auto-
mobile and motor fans.
Marketplaces: StepStone is one of the leading opera-
tors of online job exchanges in Europe (see page 74).
immonet.de is the second-biggest provider in the online
real estate market and the market leader when it comes
to cross-media real estate marketing. The website
idealo.de is one of the most-used search engines in
Germany for price and product comparisons. Further-
more, Axel Springer holds a minority interest in the multi-
brand new-car portal autohaus24.de and the driver
community carmondo.de (see page 73). Axel Springer
also holds an investment in buecher.de, an online re-
tailer of books, music, and movies.
Marketing: With zanox and Digital Window, which was
acquired in 2009 (see page 55), Axel Springer is one of
the world’s leading service providers in the area of per-
formance-based online marketing. These two compa-
nies assist advertising customers in the implementation
and optimization of their online advertising campaigns.
In the TV/radio sector, the Group holds a minority
interest in Turkey’s biggest TV and radio company, the
Dogan TV Group. This company is the market leader
both in terms of viewer market shares and advertising
market shares. Schwartzkopff TV is a successful produc-
tion company specializing in TV entertainment formats.
Furthermore, Axel Springer holds investments in regional
TV stations in the key markets of Hamburg and Berlin.
The Group also holds minority interests in Germany’s
biggest radio stations.
Services/Holding
The Services/Holding segment comprises the Group’s
own newspaper printing plants, the investment in the
rotogravure printing company PRINOVIS, and the internal
departments of Logistics and Distribution as well as
service and holding company functions.
Business model and value chain
Axel Springer’s business model is organized on a consis-
tently cross-media basis. As a media company, our
fundamental goal is to increase the number of readers
and users of our media offerings, and keep them coming
back on a permanent basis. We generate circulation
revenues and other revenues by selling our print titles
and by offering paid access to our digital offerings. And
we generate advertising revenues as a one-stop source
of multimedia reach marketing.
Cross-media concept
We are constantly developing and refining our concepts
for the presentation of information and entertainment.
Besides improving formats, (as in the form of revised
editorial concepts or graphic relaunches, for example),
we are always seeking to introduce new media products.
The development of new content is a crucial aspect of
our operating business, especially in the Digital Media
segment. Whenever possible, such new content is linked
Management Report of the Group and Management Report of Axel Springer AG 37
intensively with our high-reach print media, also in order
to make shared use of editorial talent. To gauge the
chances of new products and technology trends, we
conduct intensive market research and initiate targeted
innovation projects.
Editorial content
Axel Springer is active in every stage of the value chain
for the production and cross-media exploitation of edito-
rial content. In order to optimize the production of jour-
nalistic content for the various media, we have created
integrated newsrooms for print, online, and moving im-
age media of the BILD Group, the WELT Group/
BERLINER MORGENPOST, B.Z., and HAMBURGER
ABENDBLATT, among others. All journalistic content for
the various print and online media is produced on a joint
basis in these editorial centers of competence. In some
cases, content production is combined in the Group’s
international operations as well.
Production
The newspaper production process is subdivided into
the phases of plate production, printing, and post-press.
The plate production department receives the data for
the newspaper pages produced in the editorial depart-
ments and transfers it directly to the printing plates. In
the newspaper rotation, the paper webs are printed,
folded, cut, and then forwarded to the post-press de-
partment, where various product inputs and supple-
ments are added and the newspapers are packed. From
there, they are sent to the delivery logistics department.
Axel Springer’s German newspapers are produced in the
Group’s three offset printing plants in Hamburg-
Ahrensburg, Essen-Kettwig, and Berlin-Spandau,
among others.
For digital media, the production process usually entails
the processing and aggregation of information in data-
bases, and the provision of such information on websites
or other digital resources. Computer hardware (in the
form of server capacities) and appropriate software are
used to assure the flow of data and information between
the different components.
Distribution
Axel Springer employs a sophisticated logistical and
transport system to deliver the printed newspapers and
magazines to approximately 120 thousand retail sales
outlets, such as newsstands, magazine shops, and
discount stores. The Group’s print products are also
distributed worldwide by way of wholesale press com-
panies and press import companies. The digital media
content is delivered to users by way of various electronic
channels, such as the Internet, mobile distribution chan-
nels, and download platforms such as the Apple App
Store.
Marketing
The business model of media companies relies on circu-
lation revenues from newsstand sales and subscription
sales as well as advertising revenues. To this end, jour-
nalistic content is produced with the aim of reaching the
relevant target groups of interest to advertising custom-
ers so as to offer them attractive ad placements. In the
print titles, reach-based marketing essentially consists of
placing advertisements of different formats in advertising
supplements and in topically organized classified ads.
In the digital media, a wide variety of advertising formats
is available, including banners, layer ads, wallpaper, and
video formats. The marketing value chain is structured by
brand and market segments. The brand-oriented de-
partments prepare the standardized print and online
content as well as cross-media content designed for
specific customers, and the regional offices of the mar-
ket-oriented departments market these products to
customers and their agencies. Aside from conventional
reach marketing, other business models and market-
place models are pursued in the Digital Media segment,
as in the case of zanox and idealo.de, for example.
The Group’s German newspapers, magazines, and
brand-derived digital media are marketed centrally by
Axel Springer Media Impact. Based on gross market
shares, Axel Springer Media Impact is the leading cross-
media media marketer in Germany. As of the first quar-
ter of 2010, Axel Springer Media Impact is also respon-
sible for the telephone-supported acquisition of small to
mid-sized advertising customers and related services
(see page 56).
38 Annual Report 2009 Axel Springer AG
Organization, management, and
supervision
Management principles
The management principles, the development of corpo-
rate governance in the past fiscal year, and the compen-
sation of the Management Board and Supervisory Board
are presented in detail in the Declaration on Corporate
Governance on pages 94 to 106.
Personnel changes
On March 10, 2009, the Supervisory Board of Axel
Springer AG appointed Lothar Lanz as a new member of
the Management Board responsible for the Management
Board division “Finance and Services,” effective May 1,
2009. He took the place of Steffen Naumann, who left
Axel Springer after more than seven years of successful
service with the company.
Management Board divisions
For the sake of efficient management, the Group’s
activities are assigned to one of four Management
Board divisions.
Axel Springer Management Board Divisions
Management Board Divisions
Subscription
Newspapers and
International
Printing,
Logistics, and
HR
Chief Operating
Officer and Chief
Financial Officer
BILD Group
and
Magazines
Dr. Mathias Döpfner
Rudolf Knepper
Lothar Lanz
Dr. Andreas Wiele
Management Board Chairman Dr. Mathias Döpfner is
responsible for the Management Board division “Sub-
scription Newspapers and International.” This division
covers the newspapers, online, and mobile offerings of
the WELT Group, the cross-media offerings of our re-
gional newspapers, and the Group’s multimedia brands
in fast-growing international markets. Dr. Mathias Döpfner
is also responsible for the corporate staff functions of
Information & Public Relations, and the staff departments
of Executive Personnel, Security, Public Affairs, Axel
Springer Customer Loyalty Reinforcement, and the Axel
Springer Academy.
Vice Chairman Rudolf Knepper is responsible for the
Management Board division of “Printing, Logistics, and
HR” which covers the offset printing plants, logistics, and
services, and the Group’s investment in the rotogravure
joint venture PRINOVIS. In addition, he oversees Corpo-
rate Purchasing and Personnel.
The Management Board division “Finance and Services”
headed by Lothar Lanz is responsible for the corporate
staff and service functions of Corporate Finance, Con-
trolling, Mergers & Acquisitions, Legal, and Internal Audit,
as well as Axel Springer Services & Immobilien GmbH, IT,
Insurance Sales, and Customer Service.
The Management Board division “BILD Group and
Magazines” headed by Dr. Andreas Wiele covers the
cross-media offerings of the BILD family of brands and
the Group’s magazines. This portfolio is divided into
the following publishing groups: “BILD and BILD am
SONNTAG,” “Computer, Automotive, and Sports Me-
dia,” and “TV Program Guides and Women’s Media.”
This Management Board division also covers the busi-
ness media of Axel Springer Financial Media.
As company-wide functions, the Electronic Media man-
agement group and the Corporate Organization and
Development Department report directly to the full Man-
agement Board. The division represented by Axel
Springer Media Impact reports directly to the two Man-
agement Board members in charge of “Subscription
Newspapers and International” and “BILD Group and
Magazines.”
Management Report of the Group and Management Report of Axel Springer AG 39
Strategy and success monitoring
Corporate values
Group’s leading market position needs to be strength-
ened and extended.
The Group’s ongoing strategic and operational develop-
ment is guided by its corporate values. These values
represent the basis of our corporate culture and are
applicable to every employee of the company. The three
corporate values are:
(cid:132) Creativity, as the indispensable prerequisite for suc-
cess in journalism and business
(cid:132) Entrepreneurialism, as expressed by the ingenuity,
individual responsibility, and goal-directed actions of
the company’s employees and managers
(cid:132) Integrity in all dealings with the company, its readers,
customers, employees, business partners, and share-
holders.
Axel Springer’s management principles are likewise
derived from these corporate values. These principles
concretize our values so they can be applied in our day-
to-day activities.
Core elements and implementation of
the business strategy
Axel Springer is a leading European multimedia company
with integrated print, online, and web-TV offerings. The
Group’s business strategy is based on three core elements:
extending Axel Springer’s market leadership position in the
core business of German-language media, internationaliza-
tion, and digitization. These core elements of the Group’s
business strategy are managed on a comprehensive basis
and are intensively linked whenever possible, in order to
exploit synergies and cross-selling potential.
Market leadership in the German-language core
business
The Group’s leading market position in the German-
language core business provides a strong foundation for
widening the business model. After all, both internation-
alization and digitization largely consist of transferring
existing print brands and contents to digital distribution
channels and new market regions. Therefore, the
Market leadership
in German-
language core
business
Strategy
Internationalization
Digitization
Profitable Organic
Growth
Focused Acquisition
Strategy
Creativity
Entrepreneurship
Integrity
Corporate values
The following steps, among others, serve to extend the
Group’s market position:
(cid:132) The ongoing development, implementation, and suc-
cessful market introduction of creative journalistic
concepts
(cid:132) Periodic relaunches of existing print media with the
goal of further improving the concepts, journalistic
quality, and graphical presentation of content, or
adapting them to suit the changing needs of readers
(cid:132) Measures to bolster reader loyalty
(cid:132) Targeted marketing campaigns
(cid:132) Cross-media reach marketing via Axel Springer Media
Impact.
Internationalization
The Group’s internationalization efforts are focused in
particular on the markets of eastern Europe. Depending
on the situation in every regional market, Axel Springer
either launches or purchases new titles or acts as a
licensor or licensee in the core business of newspapers
and magazines. To minimize risks and costs, the interna-
tionalization strategy is pursued in part through joint
ventures with local publishing partners. The interlinking of
print media with digital media is also a significant growth
engine in the Group’s international operations in Europe.
40 Annual Report 2009 Axel Springer AG
Axel Springer is also represented in countries outside of
Europe, such as Mexico, India, and China, especially in
the form of licensed editions of AUTO BILD and related
specialty titles.
Digitization
Information and entertainment are being used both on
the Internet and (thanks to the introduction of advanced
technologies) also increasingly via mobile terminal de-
vices. Axel Springer was not slow to tackle the chal-
lenges presented by changing media usage patterns.
The transformation from a print publisher to an integrated
multimedia company is in full swing. At the same time,
however, the digitization of Axel Springer’s business is
being pursued in close reliance upon the Group’s estab-
lished core competencies. In other words, our activities
are primarily geared to the distribution of useful or enter-
taining information via digital channels and to the com-
mercial exploitation of the reach created by this means.
Our organic growth projects are complemented by the
acquisition of additional content portals, online market-
places, and platform solutions.
Our stated strategic goal is to generate one half of our
total revenues in our digital media operations. To that
end, we are pursuing three specific expansion paths,
which are described below.
Content portals
The journalistic quality and brand-specific know-how
inherent in our existing print titles are being transferred
to content portals in Germany and abroad. This effort is
supported by integrated newsrooms operating on a
cross-media basis. Through the ongoing development
of editorial content, our content portals tap new target
groups and so increase their reach. As another means of
achieving this goal, we pursue intensive links with social
networking sites and other online communities. In addi-
tion, Axel Springer acquires content portals that are not
derived from print brands, upgrades them, and interlinks
them with the online issues of our print media.
An important issue for our content portals in the future
will be the step-by-step introduction of paid premium
content and applications. The first applications and for-
mats were successfully placed in the market in 2009 (see
page 58). The paid content offerings complement the
existing business model of our content portals, which
has been geared primarily to generating advertising
revenues.
Marketplaces
Axel Springer offers attractive platforms for online pur-
chases and classified ad markets through its Internet
marketplaces such as immonet.de, idealo.de, and Step-
Stone. Whenever possible, we seek to exploit the syner-
gies inherent in the combination of content portals and
marketplaces.
Marketing
Through zanox and Digital Window, Axel Springer is the
leader in performance-based online marketing. The plat-
forms operated by these two companies bring advertis-
ers and partner websites (affiliates) together. Both sides
benefit from this networking arrangement. The affiliates
can attract advertising customers and offer them adver-
tising spaces. For this service, they are remunerated on a
contingency basis, depending on the quality of contacts
and transactions. The advertisers, for their part, can
address the users they want to reach in a precise and
efficient manner, thereby avoiding scatter losses. The
platforms ensure the secure processing and recording of
data, transactions, and the commissions generated on
sales. In addition, their comprehensive services and
innovative applications improve the chances of advertis-
ing success. In this business, Axel Springer is pursuing a
strategy of accelerated international growth and joint
further development of the services offered.
Management Report of the Group and Management Report of Axel Springer AG 41
Value-driven management
The business strategy of Axel Springer and the three
core elements of that strategy serve the overriding goal
of sustainably increasing the company’s value. That goal
is achieved by means of profitable organic growth, as
well as a focused acquisition strategy. The Group’s
controlling system has been designed on the basis of
these goals. By tracking the development of financial and
non-financial performance indicators, Axel Springer
closely monitors the implementation of the Group’s busi-
ness strategy.
Non-financial performance indicators
The non-financial performance indicators make it possi-
ble to measure the success of Axel Springer’s work in
the areas of customers, offerings, processes, employees,
and sustainability. Though not reflected in the company’s
income statement, these indicators are nonetheless key
drivers of Axel Springer’s value-driven development.
They provide an early indication of whether strategic
measures are producing the desired effects, making it
possible to quickly initiate appropriate countermeasures
when necessary. Furthermore, the non-financial per-
formance indicators are seen as a kind of early indicator
for the development of the financial performance indica-
tors, as the former will eventually be reflected in the latter.
In the category of performance indicators pertaining to
customers, markets, and products, the following are
particularly important:
(cid:132) Paid circulation and reach (meaning the number of
readers reached) of print media and the correspond-
ing competitive position. We disclose the average
paid circulation of all our major newspapers and
magazines and utilize up-to-date reach surveys
(cid:132) Inique visitors, visits, and case-by-case performance
indicators for online media; and the market positions
measured on that basis. The main performance indi-
cator for this purpose is that of unique visitors, which
we disclose together with the visits in the form of av-
erage monthly values
(cid:132) The reach of the Group’s media in the advertising
market, and indicators of brand and advertisement
familiarity generated through market research.
Axel Springer AG has also set itself the goal of becoming
Europe’s most customer-friendly media company by the
year 2010. For this purpose, we have developed a differ-
entiated measurement and evaluation system known as
the customer-retention index. The data is collected and
analyzed by TNS-Infratest. The customer-retention index
is an important indicator of customer satisfaction and
loyalty. It is determined on the basis of the perceived
quality of our publications, the brand loyalty of our cus-
tomers, repeat purchase rates, and the respective com-
petitive advantage, among other factors. Over the last
four years, the customer loyalty reinforcement program
has spearheaded a cultural transformation in our com-
pany and redoubled our commitment to customers.
Axel Springer employs the same techniques to measure
the quality of internal cooperation and service orientation,
with the goal of identifying and promoting efficient pro-
cedures in the Group. The results of this analysis point
the way to new ways of improving the Group’s internal
service quality. These results are aggregated to form an
internal customer-retention index. By measuring the
external and internal customer-retention and the effec-
tiveness of the measures taken based on them, every
year, we have established a continuous improvement
process, as a valuable contribution to the long-term
enhancement of the Group’s profitability.
Axel Springer also counts ecological and social perfor-
mance indicators among its non-financial indicators. For
this purpose, the Group relies on the sustainability criteria
of the Global Reporting Initiative (GRI). The ecological effi-
ciency indicators tracked by Axel Springer mainly include
the quantity of wastewater, solid waste, climate-affecting
emissions, and energy consumption. (see page 49).
42 Annual Report 2009 Axel Springer AG
Financial performance indicators
The key financial performance indicators used by Axel
Springer in the reporting period on the level of the overall
Group and the individual segments are:
(cid:132) Revenues, as the sum of circulation, advertising, and
other revenues
(cid:132) Earnings before interest, taxes and depreciation
(EBITDA), and the corresponding EBITDA margin.
These financial performance indicators are anchored in
the Group-wide planning and controlling system and
form the basis for the performance-oriented compensa-
tion of the Management Board and managers, as well as
for the profit-sharing program for all permanent employ-
ees of the Group (see page 46).
A capitalized value method based on weighted capital
costs is employed to assess the profitability of capital
investments in new or existing business lines. The
weighted average capital costs are determined on the
basis of a target capital structure. The risk of a capital
investment project is generally represented by means of a
capital markets equilibrium model, applying a beta factor
(for the business-specific, systemic risk) and a market
premium (for the country-specific, non-systemic market
risk). As a basic rule, it is assumed that the company’s
systemic risk is equivalent, on average, to that of compa-
rable companies. For this purpose, Axel Springer’s peer
group consists of European media companies. In addition,
specific risks are reflected in the weighted average capital
costs, which are updated every year.
Financial Performance Indicators
In addition to absolute figures, we also analyze various
relative indicators on a regular basis in order to measure
the success of strategic implementation processes.
These include the following, among others:
Selected financial performance
indicators on the Group level,
in € millions
Consolidated revenues
2009
2008
2,611.6
2,728.5
Proportion of international revenues
21.0 %
21.9 %
(cid:132) The proportion of total Group revenues represented
by international revenues, as an indicator of the suc-
cess of the Group’s internationalization strategy
Proportion of digital media1)
EBITDA
EBITDA margin
21.0 %
18.8 %
333.7
486.2
12.8 %
17.8 %
(cid:132) The proportion of total revenues represented by the
revenues of the Digital Media segment, as an indicator
of the success of the Group’s digitization strategy.
1) Basis: Pro forma revenues in the Digital Media segment and pro forma revenues total.
Management Report of the Group and Management Report of Axel Springer AG 43
Employees
Axel Springer’s personnel policies are guided by the core
values of responsibility and sustainability. They are fo-
cused on systematic employee development. We regard
vocational training and continuing education as an im-
portant investment in the future success of our company.
In accordance with our corporate culture, which empha-
sizes transparency, values, and performance, we pro-
mote an active dialogue between employees and man-
agers, as well as diversity and equal opportunity in the
work place and compensation geared to performance
and success.
Workforce
Excluding vocational trainees, journalism students, and
interns, Axel Springer had an average of 10,740 (PY:
10,666) employees in 2009. The total workforce in-
creased over the previous year, primarily as a result of
the new digital media acquisitions and start-ups in Ger-
many and abroad. At year-end 2009, 21.7 % of all em-
ployees were working in this area.
On average during the year 2009, 2,640 employees
worked in the Newspapers National segment, 1,225 in
the Magazines National segment, 2,729 in the interna-
tional print business (Print International), 1,607 in the
digital business (Digital Media), and 2,539 in the Ser-
vices/Holding segment. The number of reporters and
editors declined by 188 to 3,378, primarily in connection
with the Group’s activities in Germany and Poland, while
the number of salaried employees increased by a total of
324 to 6,436, due to the expanded activities and acqui-
sitions in the Digital Media segment. At December 31,
2009, the average length of service with Axel Springer
was 12.5 (PY: 12.3) years; 52.0 % (PY: 47.0 %) of the
total workforce have been with the company for more
than ten years. The average yearly percentage of the
total workforce represented by severely disabled em-
ployees in the German companies was 4.3 % in 2009
(PY: 4.3 %), thus essentially meeting the requirements of
the Severely Disabled Persons Act again in 2009.
At € 791.9 million, the personnel expenses for fiscal year
2009 were 9.6 % higher than the corresponding prior-year
figure (PY: € 722.5 million). Above all, this increase re-
sulted from the business expansion associated with com-
pany acquisitions. For 2009, collective agreements were
concluded both for the wage-earning employees (term of
effect: April 1, 2009 to March 31, 2011) and the salaried
employees (term of effect: April 1, 2009 to June 30, 2011)
of the printing industry and the newspaper and magazine
publishers. Under the terms of the collective agreements,
these employees are to receive one-time payments of
between € 250 and € 280 per employee for 2009/2010.
These amounts were paid in September/October 2009
and in January 2010, respectively. For 2010, linear collec-
tive pay increases of 2 % and 1.6 %, respectively, were
agreed effective April 1/May 1 and August 1, 2010, re-
spectively. The linear collective pay agreement for the
newspaper and magazine reporters and editors called for
a 1.6 % pay increase effective October 1, 2009. This col-
lective pay agreement will expire on July 31, 2010 and
must therefore be renegotiated in 2010.
Professional training
Based on the conviction that the success of print and
online media products hinges on their quality and credibil-
ity above all other things, we go to great lengths to pro-
vide high-quality professional training to the next genera-
tion of journalists. Since 2007, we have operated Ger-
many’s most modern journalism school, the Axel Springer
Academy. This school of journalism, which Axel Springer
had originally founded in 1986, follows a consistently
44 Annual Report 2009 Axel Springer AG
cross-media approach to journalism training. As a crea-
tive workshop for ideas, the Axel Springer Academy has
already developed quite a few media projects, some of
which have been award-winning. Aside from the close
collaboration with WELT KOMPAKT, the Axel Springer
Academy also entered into a cooperation agreement with
the renowned Columbia School of Journalism in 2009. In
2009, the Axel Springer Academy once again accepted
40 applicants for the two-year professional training pro-
gram. Nearly all the 37 graduates have taken on perma-
nent positions in the Group’s various media units.
In addition to professional training in journalism, we also
provide vocational training programs for Digital and Print
Media Managers, Office Communications Managers,
Digital and Print Media Designers, a Bachelor of Arts in
Business Administration, and Marketing Communication
Managers. With 153 vocational trainees at year-end
2009, we made it clear that Axel Springer will stand by
its commitment as an employer that provides vocational
training even in times of financial and economic crisis.
Continuing education
Axel Springer offers an extensive continuing education
program to help its employees and functional depart-
ments master the challenges associated with the strate-
gic further development of the Group.
The continuing education program is designed to satisfy
the individual learning needs of every employee, as de-
termined by means of a process we call the “develop-
ment dialog,” among other measures. Every year, we
offer about 600 events such as seminars, networks,
foreign language courses, and presentations as part of
our continuing education program.
The various functional departments focus on providing
specific training measures to exactly meet the individual
needs of their employees.
We provide tailored, needs-based training programs for
employees working in the sales and distribution organi-
zations. Under a supplementary program, every em-
ployee is entitled to pursue work-concurrent continuing
education programs culminating in their certification as
an Online Marketing Specialist, Dialog Marketing Special-
ist, Certified Media Specialist, or State-Certified Commu-
nications Specialist, among other certifications.
Recruiting and promoting key talents
As in the preceding year, Axel Springer intensively pur-
sued college graduate marketing in 2009. In that regard,
we presented the Axel Springer Group and the many
career opportunities it offers to college students at uni-
versity job fairs, among other events. Our support of
student initiatives and the maintenance of cooperation
arrangements with universities and professorships such
as the European School of Management and Technology
(ESMT) in Berlin, the Hamburg Media School, and other
universities were also important outreach tools.
Among the measures we undertake to promote the
career development of college students, we offer an
internship program and then make systematic efforts to
retain especially talented students by means of follow-up
internships and master’s degree thesis projects. We also
provide university scholarships to vocational trainees
who have exhibited outstanding performance. Finally,
college graduates undergo a trainee program upon join-
ing the company. At year-end 2009, a total of 17 college
graduates were participating in this trainee program,
which is designed to convey professional and methodo-
logical knowledge. We also emphasize the importance of
networking within the Group, and especially with the
journalistic departments.
Managers in dialog with employees
The creativity of our managers and their ability to com-
municate with others are key prerequisites for motivating
employees and bringing out their best performance. The
management principles already adopted by Axel
Springer in 2008 concretize the Group’s core values and
clearly define the requirements and expectations by
which our managers are evaluated. A series of manage-
ment workshops was held to firmly instill the new princi-
ples within the organization. By the end of 2009, more
than 600 managers from all management levels of the
company had participated in more than 70 workshops
associated with the adoption of the management princi-
Management Report of the Group and Management Report of Axel Springer AG 45
ples. In addition, a comprehensive continuing education
and training concept geared both to young talents and
experienced managers was implemented.
The “development dialog” (a structured goal-setting and
appraisal meeting between the manager and employee)
that had also been introduced in 2008 was continued in
2009. Under the terms of an agreement reached with the
Group’s Central Works Council, the development dialog
will be continued for the next four years. This manage-
ment instrument is designed to promote the career de-
velopment of our employees in a targeted manner, ac-
cording to their specific needs, in the context of the
strategic goals of the company and its various divisions.
The development dialog will be implemented throughout
the company on a step-by-step basis. During the pilot
phase in 2008, about 600 employees from eight divi-
sions of the company participated in the development
dialogs; in 2009, about 1,200 employees in 18 divisions
of Axel Springer AG and about 200 employees in three
subsidiaries additionally took part. Before the process
begins, both managers and employees receive extensive
training to prepare them for this new instrument. More-
over, since mid-2009, every member of the Management
Board regularly invites randomly selected employees to
have breakfast and exchange ideas.
In the autumn of 2009, the Group’s existing manage-
ment development activities were supplemented by two
multi-day leadership programs entitled “Leadership in
Times of Change.” This seminar was developed in coop-
eration with leading business schools specifically for the
Management Board and other top-level executives. The
seminar is designed to promote an active examination of
their personal management styles, upgrade their leader-
ship skills, and reinforce their teamwork, reflection, and
feedback abilities. These leadership programs are highly
instrumental in establishing a new management culture
at Axel Springer.
Idea management
protection, and technological advances in the company.
In 2009, the number of submitted proposals jumped
from 1,632 to 2,373; of that number, 845 (PY: 671)
proposals were implemented, generating savings of
€ 1.2 million (PY: € 1.0 million). In exchange, Axel
Springer paid bonuses totaling € 264 thousand (PY:
€ 277 thousand) to the employees who submitted the
implemented proposals.
Axel Springer held its first “Idea Days” in Berlin and
Hamburg in August and September of 2009. At these
events, every employee was given the chance to present
his or her idea to the members of the Management
Board without prior notice. Numerous proposals were
collected, including the idea of a new digital magazine for
WELT am SONNTAG. This idea was developed and
introduced to market in only two months; thus, the new
WELT am SONNTAG e-mag is the latest addition to the
Group’s broad line-up of premium online offerings.
Health promotion
Promoting the health of our employees is a crucial as-
pect of our personnel policy. Axel Springer’s health man-
agement program focuses on the topics of exercise,
nutrition, and illness prevention.
The topics of exercise and nutrition are addressed in
particular by the full-year program known as “On your
Marks – Get Set – Get Fit!” This program comprises alter-
nating sports and fitness programs, as well as cooking
seminars to teach the principles of a well-balanced diet
rich in vitamins (accompanied by suitable menu items in
the employee restaurants) and expert presentations on
subjects such as managing stress at the workplace.
Again in 2009, Axel Springer’s company health insurance
carrier offered vaccinations against the seasonal flu and
provided information on health topics such as colon
cancer prevention. In connection with the new flu (H1N1),
all required preventive measures were immediately taken
at all of Axel Springer’s main locations.
At Axel Springer, we actively solicit and act on the ideas
of our employees. The idea management program offers
bonus incentives to employees who develop proposals
to enhance cost efficiency, work safety, environmental
Our special commitment to the health and well-being of
our employees was highlighted by the fact that Axel
Springer was among the companies honored with the
46 Annual Report 2009 Axel Springer AG
Bonus share and share ownership
program
Under a voluntary, one-time employee share ownership
program, all employees who had entered into goal agree-
ments were given the chance to convert half or all of their
bonus for the year 2008 into Axel Springer shares. An
extra bonus on the converted bonus was also granted. In
addition, four bonus shares were offered on a one-time
basis to all qualifying employees who did not receive a
performance-dependent salary component and to those
employees who did not participate in the bonus conver-
sion plan. The holding period is one year for the bonus
share program and two years for the employee share
ownership program. The shares were issued from the
treasury share reserve of Axel Springer AG.
Company pension plan
Axel Springer’s employees are entitled to participate in
the forward-looking deferred-compensation plan known
as “VarioRente.” By participating in this plan, employees
can accumulate a sizable balance in their pension ac-
count by the time they enter retirement. In June 2009,
the Management Board and the Central Works Council
of Axel Springer AG reached an agreement on the con-
tinuation of this voluntary pension agreement and made
the terms of participation even more attractive. The 6 %
rate of interest paid on contributions to this plan will be
continued for another three years; in addition, Axel
Springer will continue to pay an annual grant for another
five years. This plan was again very well received by the
employees, as evidenced by the average participation
rate of nearly 35 % in 2009 (PY: 36 %).
Corporate Health Award 2009. This award is a joint
initiative of Handelsblatt, TÜV Süd Life Service, and
EuPD Research and is granted under the auspices of the
German Federal Ministry of Labor and Social Affairs.
Equal opportunity
Axel Springer offers all employees equal career devel-
opment opportunities, regardless of nationality, culture,
gender, ethnic background, or other individual character-
istics. In line with this fundamental philosophy, the Group
joined the Charter of Diversity. Moreover, we instituted a
separate working group, composed of equal numbers of
employer and employee representatives, to ensure that
equal opportunity is a reality at Axel Springer. This work-
ing group deals with issues such as the compatibility of
work and family, the further development of work-time
models, and the support of employees on parental leave,
among other issues. In October 2009, moreover, a pro-
ject was initiated to advance the promotion of women to
senior management positions.
Following the opening of a day care center for the children
of Axel Springer employees in Berlin (“Wolkenzwerge”) in
April 2008, a comparable day care center will be opened
in Hamburg in the second quarter of 2010. These day
care centers are an important means of promoting the
compatibility of work and family at both operating loca-
tions.
Compensation geared to success and
performance
Axel Springer compensates employees and managers
on the basis of their performance and success. The
variable compensation system introduced in 2007, which
is based on goal agreements, has worked extremely well.
The targets set for the fiscal year include corporate goals,
division goals, and individual goals.
In addition, qualifying salaried employees of Axel Springer
participate directly in the company’s success. In fiscal
year 2009, a bonus of € 1,000 was paid to every qualify-
ing employee.
Management Report of the Group and Management Report of Axel Springer AG 47
Social responsibility
Axel Springer is genuinely committed to social responsi-
bility, as a matter of fundamental conviction. That com-
mitment encompasses the adherence to social and
ecological standards, the promotion of education and
culture, and the advocacy of peace, freedom, and un-
derstanding among peoples.
Commitment to social responsibility
Axel Springer is the only media company to have a cor-
porate constitution; it dates back to 1967. In accordance
with the terms of this constitutive document, we are
bound to uphold the following principles, which are also
anchored in the company’s Articles of Incorporation:
1. The unconditional support of liberty and the rule of
law in Germany, as a member of the western com-
munity of nations, and of the efforts to unify the peo-
ples of Europe
2. Reconciliation between Jews and Germans; this also
includes supporting the vital rights of the Israeli people
3. Support of the trans-Atlantic alliance, and solidarity
with the United States of America and the values it
shares with free nations
4. Rejection of all forms of political totalitarianism
5. Defense of the free social market economy.
Both Axel Springer and its employees were actively
involved in the commemoration of two highly significant
anniversaries in 2009: The 60th anniversary of the Fed-
eral Republic of Germany and the 20th anniversary of the
fall of the Berlin Wall. Axel Springer’s newspapers ac-
companied these important historical events with special
editions and media campaigns.
BILD was the co-initiator of a highly visited art exhibit in
Berlin’s Gropius Building, showcasing the works of Ger-
man artists over the last 60 years. In August of last year,
BILD presented Israeli Prime Minister Benjamin
Netanyahu with the original construction blueprints for
the Auschwitz concentration and extermination camp in
a ceremony at the Axel Springer Building in Berlin. These
historical documents, which had been acquired by BILD,
were only discovered in the autumn of 2008. In Septem-
ber of 2009, Mr. Netanyahu held up these documents in
a speech before the United Nations General Assembly in
New York. In January 2010, they were put on display as
part of a special exhibition at the Yad Vashem Holocaust
Memorial.
At the end of October, 20 years after the fall of the Berlin
Wall, the “Fathers of Unity” Helmut Kohl, George H. W.
Bush, and Mikhail Gorbachev accepted BILD’s invitation
to speak at the Axel Springer House in Berlin, where they
shared their memories of German reunification. Shortly
thereafter, a bust of Mikhail Gorbachev was ceremoni-
ously unveiled in the Axel Springer Passage in Berlin.
Another important event commemorated in May of 2009
was the 50th anniversary of laying the cornerstone for
Axel Springer’s publishing headquarters in Berlin, which
in those days was located directly at the old sector line.
On this occasion, artist Stephan Balkenhol’s sculpture
“Balanceakt,” which symbolizes triumph over Germany’s
division, was unveiled in the forecourt of the Axel Sprin-
ger House in Berlin.
Apart from the activities described above, Axel
Springer’s various media publications engaged in the
actions described below as a means of heightening
public awareness of other socially relevant topics:
(cid:132) In October 2009, B.Z. instigated a long-term cam-
paign known as “Heroes of Berlin” in support of vol-
unteerism in the capital city. Persons interested in vol-
unteering their time can find just the right projects for
them at the media platform berliner-helden.com; at
the same time, B.Z. publishes daily reports on its
website to motivate potential volunteers.
(cid:132) Since 1997, the Swiss magazine BEOBACHTER has
awarded the Prix Courage to “every-day heroes” who
are quick to help others or who selflessly advocate for
an open, solidary, and just Switzerland.
(cid:132) Under the slogan “How to save our planet,” HÖRZU
also tackled the issue of environmental protection by
providing information to readers on concrete actions
48 Annual Report 2009 Axel Springer AG
how they themselves can work towards climate pro-
tection. Again in September 2009, the weekly TV pro-
gram guide FUNK UHR awarded the German Animal
Protection Award in conjunction with the German
animal protection association Deutscher Tierschutz-
bund e.V.
(cid:132) As part of its “Person to person” campaign,
HAMBURGER ABENDBLATT reports on people in
need of assistance and collects donations for them.
Donations of only € 2 per vacation subscription raised
more than € 20 thousand for the association “Kinder
helfen Kindern e. V.”
(cid:132) The newspapers and magazines of the BILD family
campaigned energetically in the interest of consumer
protection. Among other things, in cooperation with
technical-service provider TÜV Rheineland, they re-
ported on consumer scams and Internet frauds, and
uncovered safety deficiencies in German playgrounds.
Active support of social, educational,
and cultural causes
Not only Axel Springer as a company, but also its em-
ployees, are actively committed to social, educational,
and cultural causes as demonstrated by their actions in
2009 and in prior years.
Social projects
In 2009, the aid organization “BILD hilft e.V.” (also known
as “A Heart for Children”) collected total donations of
€ 15.2 million, which were applied directly and without
deductions to help children and families. The funds were
used to support soup kitchens, day care centers, and
schools, as well as medical procedures, such as opera-
tions and other types of therapies for children. Most of
the money is used in Germany. Internationally, “A Heart
for Children” provides international disaster relief, as it
did in Haiti, but for the most part invests in education
and funds life-saving medical treatment for children.
Some of the exemplary campaigns of Axel Springer’s
various newspapers and magazines are mentioned be-
low.
(cid:132) The BERLINER MORGENPOST initiative known as
“Berliner helfen e.V.” provides assistance to people in
dire straits so that they can help themselves. This ini-
tiative is supported by reader donations and is ac-
companied by extensive reporting in the print edition
and on the website.
(cid:132) In 2009, the “Hand in Hand for Africa” campaign of
FUNK UHR raised € 30 thousand for medical supplies
and equipment for inhabitants of southwestern Tan-
zania.
(cid:132) BILD am SONNTAG and the health insurance carrier,
Techniker Krankenkasse, sponsor the PULSUS
health-care award. The prize money is awarded to
physicians and therapists who volunteer their services
to help others.
Again in 2009, many Axel Springer employees supported
the German hunger relief association Deutsche Welthun-
gerhilfe by participating in the “Small Change Campaign.”
Participating employees donate the cent amounts of their
monthly salary payments and the company provides
generous matching funds.
Educational and cultural projects
Axel Springer endowed the “Ernst Cramer Fellowship,”
which provides stipends to enable young German jour-
nalists to live and work in Israel, and young Israeli jour-
nalists to live and work in Germany for a period of two
months, in both cases. In cooperation with the Interna-
tional Journalist Program (IJP), applications for this sti-
pend were solicited for the sixth year in a row in 2009.
Aimed at future opinion leaders, this program is designed
to heighten the awareness of German-Israeli relations.
The participants gather first-hand impressions of the
mentality, culture, and day-to-day lives of people in the
other country.
As a member of the innovation initiative known as
“Young People Thinking about the Future,” Axel
Springer’s offset printing plant in Ahrensburg organized a
workshop for 25 Hamburg secondary school students in
October 2009. The participating students learned about
the work of a printing plant, and discussed various social
trends and technological innovations of interest to the
media industry.
Management Report of the Group and Management Report of Axel Springer AG 49
Sustainable business practices
Axel Springer undertakes a wide variety of measures to
assure sustainable business practices in all areas of the
Group. These measures are guided by the International
Social Policy and the Group’s Environmental Protection
Guideline. Furthermore, Axel Springer voluntarily submits
to regular audits of the organizational measures related
to environmental protection at its printing plants in Ger-
many. These audits are conducted by outside experts in
accordance with the EC Eco-Audit process.
Every two years, Axel Springer voluntarily publishes an
extensive Sustainability Report, which is audited by an
independent institution. The Sustainability Report fulfils
the more than 120 economic, social, and ecological
performance criteria of the Global Reporting Initiative
(GRI). The most recent report, published in 2008, was the
first such report by a media company to receive GRI’s
highest-level completeness certification, “LEVEL A+.”
As part of our international business strategy, international
subsidiaries were more closely integrated into the Group-
wide sustainability management program in 2009. Based
on their particular circumstances, national subsidiaries in
Poland, France, and Switzerland developed sustainability
reports of their own that meet the requirements of the
Global Reporting Initiative. Numerous improvement
measures have been initiated on the basis of GRI criteria.
In addition to the printing plants, the Group-owned catering
company PACE Paparazzi Catering & Event GmbH also
instituted a comprehensive sustainability management
program in the current year. It is now in the process of
preparing a GRI-conformant sustainability report.
Environmental management at Axel Springer
The Environmental Protection Guideline imposes the
obligation on all operating locations and companies of
the Group to avoid creating environmental burdens
whenever possible, and to continuously optimize their
resource efficiency.
Environmental Indicators of the Printing Plants
% change from previous year
13
Wastewater volume per m2 of printed paper
5
Waste per m2 of printed paper
6
Energy per m2 of printed paper
5
Greenhouse gas emissions per m2 of printed paper
Unlike the case in previous years, Axel Springer was not
able to further improve the specific environmental per-
formance indicators of its printing plants in Germany and
Hungary in 2009 due to the lower volume of print runs
last year. Compared to the corresponding figure for 2008,
the volume of wastewater per square meter of printed
paper released into the public drainage system increased
by 13 %. The reasons for this increase include problems
encountered with the settings for the re-cooling system
at the printing plant in Spandau and damage incurred at
the printing plant in Essen-Kettwig. Due to the higher
number of single-batch print runs, which necessitated
additional set-ups of production equipment, the propor-
tion of unsellable output (printer’s waste) was higher.
Consequently, the solid waste produced per square
meter of printed paper was 5 % higher in 2009. Although
the total energy consumption of the printing plants was
3 % lower in 2009 than in 2008, the energy consumption
per square meter of printed paper was 6 % higher due to
the fact that the base load for the equipment and build-
ings is largely unaffected by the size of the print runs.
50 Annual Report 2009 Axel Springer AG
The direct and indirect greenhouse gas emissions fol-
lowed the trend of energy consumption. Although the
overall emissions were lower, the emissions per square
meter of printed paper were 5 % higher in 2009.
In collaboration with the German Printing and Media
Industries Federation and the Sustainability Working
Group in the National Association of German Magazine
Publishers (VDZ), Axel Springer developed a CO2 calcula-
tor in 2009. This model is used to analyze and track the
typical processes involved in the production of newspa-
pers and magazines. It is already being tested extensively
in Axel Springer’s printing plants in order to assess its
practical suitability. The direct, climate-affecting green-
house gas emissions result from the combustion of natu-
ral gas in the Group’s printing plants, and the indirect CO2
emissions result from the generation and delivery of pur-
chased electricity and the externally purchased district
heating for the operating locations of Axel Springer.
Sustainability management of suppliers
Aside from assuring sustainable business practices in its
own operating locations, Axel Springer also exerts its
influence on suppliers (primarily those active in the wood,
paper, and recycling chain) so that they will engage in
environmentally compatible practices with regard to the
exploitation of natural resources in accordance with the
Group’s Environmental Protection Guideline. Axel
Springer also imposes on its suppliers the social criteria
set forth in the Group’s International Social Policy (see
page 96). In 2009, the Group purchased about 440
thousand metric tons of printing paper from roughly 50
papermaking factories in about 15 countries. About half
the printing paper used by Axel Springer contains recy-
cled paper.
Axel Springer conducts on-site inspections to verify
compliance with its sustainability standards. Having
already paid information visits to forestry enterprises in
Russia and to suppliers of promotional materials in China,
we inspected a manufacturer of short-fiber pulps made
from eucalyptus wood in Fray Bentos, Uruguay, in 2009.
This raw material is used in printing paper for magazine
covers. As part of this inspection, we toured plantations
and pulp production facilities, held talks with employees
on the subject of social standards, and shared views
with environmental protection and anti-corruption organi-
zations. The inspection concluded with a positive as-
sessment.
Participation in international initiatives
In 2009, Axel Springer again supplied data about its own
greenhouse gas emissions (CO2 equivalents) to be used
in the German report of the Carbon Disclosure Project
(CDP). The CDP is the world’s largest joint project of
institutional investors devoted to measuring the eco-
nomic impacts of climate change.
As a member of the “Business & Biodiversity” initiative
created by the German federal government in 2008, Axel
Springer accepted the obligation to analyze the conse-
quential effects of its activities on biological diversity, and
to adjust its sustainability management program accord-
ingly. One of the projects undertaken in this regard in-
volves the formulation of biodiversity criteria to be applied
in purchasing office paper and environmental advertising
brochures. The Business and Biodiversity Initiative (B&B)
is an international project conducted under the aegis of
Germany’s chairmanship of the UN Convention on Bio-
logical Diversity (CBD).
Management Report of the Group and Management Report of Axel Springer AG 51
Business development and performance
General economic conditions
The economic environment was extremely challenging
for all media companies in 2009. The worldwide reces-
sion adversely impacted their business throughout the
year; in the second half, the economic situation stabilized
on a low level. The advertising market in particular came
under considerable pressure.
General economic environment
Following the worst economic downturn since the Sec-
ond World War, the global economy picked up consid-
erable momentum in the second half of 2009. Supported
by massive economic stimulus programs and expansive
monetary policies, the trend reversal occurred much
faster than had been widely feared. According to calcula-
tions of the IMF, worldwide economic output contracted
by 0.8 % in 2009.
The recovery was driven in large part by the dynamic
growth of emerging economies. In the summer of 2009,
for example, China’s economy resumed growing at a
rate almost matching its growth rate prior to the financial
markets and economic crisis. Economic growth in the
industrialized nations was more subdued, but they too
were able to arrest the economic decline in the second
half of 2009. The U.S. economy was buoyed by a strong
jump in consumer spending, fueled in large part by the
“cash for clunkers” program, which boosted automobile
sales. On the other hand, investment on plant and
equipment increased only slightly. The Japanese econ-
omy recovered somewhat, as foreign trade revived and
consumer spending rose.
The German economy contracted in 2009 for the first
time in six years. According to preliminary calculations of
the German Federal Statistical Office, German gross
domestic product decreased by 5.0 % in real terms.
Most of the economic contraction occurred in the winter
months of 2008/2009, as the economy stabilized in the
later course of 2009. The German economy was
weighed down by the performance of exports, which
had served as an important growth engine in earlier
years. Exports declined at a real rate of 14.2 %, and
imports at a real rate of 8.9 % in 2009. On the other
hand, consumer spending provided a positive boost to
the economy. Benefiting very much from the government
subsidization of car sales, consumer spending increased
at a real rate of 0.2 % in 2009; excluding automobile
purchases, however, private households actually re-
duced their spending. The reason behind this was the
0.9 % decrease in take-home pay. According to the
consumer research institute Gesellschaft für Konsumfor-
schung (GfK), consumer sentiment improved steadily
during the course of 2009, although a slight retrench-
ment was observed in December. Consumer spending
was bolstered by the historically low inflation rate of only
0.4 %, the lowest reading since the reunification of Ger-
many. Lower food and energy prices were key factors
contributing to the low inflation rate.
Despite the deep recession, unemployment increased
only slightly in 2009 as companies sought to protect jobs
and resorted to shortened working hours to a substantial
degree. According to the German Federal Employment
Agency, 1.1 million employees were working fewer-than-
normal hours in September 2009. On average,
3.4 million people were unemployed in 2009.
In our international markets the eastern European
Member States of the European Union were especially
hard hit by the global economic crisis in 2009. With the
exception of Poland and the Czech Republic, none of
the countries in this region were in a position to under-
take significant economic support measures. On average,
eastern European Member States saw their gross do-
mestic products contract at a rate of 3.9 %.
Poland was the only EU nation in eastern Europe to
achieve positive economic growth in 2009 at a real
growth rate of 1.3 %. The Czech Republic saw its GDP
decline at a rate of 4.3 %, while Hungary was even
greater of 6.6 %. As a result of the lower global demand
for commodities and a drastic decline in investment
expenditures, the Russian economy suffered a real con-
traction of 8.0 % in 2009.
All the western European nations were adversely af-
fected by the economic crisis in 2009. Supported by
government spending, the French economy contracted
by only 2.3 %. Compared with other European countries,
Switzerland experienced a relatively mild GDP contrac-
52 Annual Report 2009 Axel Springer AG
tion of only 2.0 %. The Spanish economy contracted at a
rate of 3.7 % in 2009. Thanks to extensive economic
stimulus measures and a revival of exports, Spain recov-
ered somewhat over the course of the year.
Industry environment
Press distribution market
The reduced level of consumer spending (excluding
automobile purchases) was clearly evidenced in the
development of the German press distribution market.
Weighted for their respective publication frequencies, the
total paid circulation of newspapers and magazines
tracked by IVW was 2.4 % less than the corresponding
prior-year figure. Thanks to price increases implemented
in the last four quarters, however, circulation revenues
were only 0.8 % less than the respective prior-year figure.
All together, the 373 daily and Sunday newspapers
tracked by the IVW generated total sales of 23.2 million
units per issue, indicative of a 2.2 % decrease from the
prior year. Newsstand sales suffered a much worse de-
cline (– 3.9 %) than subscription sales (– 1.8 %) in 2009 in
a continuation of the trend observed in the previous year.
Within the press distribution market, the demand for daily
and Sunday newspapers (weighted for their respective
publication frequencies) declined by 2.4 % in 2009.
At 115.1 million units per issue, the total sales of
general-interest magazines (including membership
and club magazines) declined by 1.0 % from the prior
year. Having sustained a 0.2 % decrease from the prior
year, newsstand sales experienced an almost identical
development as subscription sales (– 0.1 %). Weighted
for their respective publication frequencies, the demand
for general-interest magazines in 2009 was 2.3 % lower
than in 2008.
Whereas the circulation of print media continued to fall,
online media continued to gain readers in 2009. Accord-
ing to a study entitled “Internet facts 2009-III” published
by the online research association Arbeitsgemeinschaft
Online Forschung (AGOF), 43.5 million people in Germany
used the Internet (Internet users over the last three
months). This number represents 67.1 % of the German
resident population over the age of 14. As the Internet
has become established in all segments of the population,
the demographic structure of Internet users has drawn
increasingly closer to that of the overall population. Of the
43.5 million people who use the Internet on a regular
basis, 64.5 % use it to obtain news about world events,
and 57.3 % use it for regional or local news. Thus, along
with retrieving and sending e-mails, weather information,
online shopping, and online research, news is one of the
most important reasons for using the Internet. More than
one-third of users turn to the Internet for information on
movies, show times, and sporting events either frequently
or occasionally. Another one of the 20 most-used online
categories is jobs and real estate listings.
Based on the data published by IVW, content portals of
the German print media were visited much more fre-
quently in 2009 than in 2008. Thus, the 20 most-visited
portals of German premium newspapers registered an
average 34 % increase, and magazine portals a 31 %
increase in the number of visits. Furthermore, nearly all
the portals that are geared primarily to entertainment
attracted higher numbers of visitors. According to com-
Score, the number of unique visitors to the most-visited
portals increased at a double-digit rate.
Advertising market
The advertising market was also hard hit by the eco-
nomic crisis in 2009, as businesses reduced their adver-
tising budgets across the board. However, this trend is
not fully reflected in the available data on the state of
the advertising market, including the data provided by
Nielsen Media Research, among others. That is because
this data only refers to advertising for branded products
and services, and that of large-scale retailers, and does
not include classified ads and brochure supplements.
It should also be remembered that considerably intensi-
fied competition in the media industry is putting pressure
on advertising rates, so that figures based on standard
rates, which disregard any discounts allowed, do not
truly reflect the actual situation. Therefore, the trend of
net advertising revenues, which is economically more
important, was considerably more unfavorable.
At € 18.9 billion, the total advertising market (includ-
ing conventional online advertising, but excluding search-
term marketing and affiliates, as well as media advertis-
ing) was nearly unchanged from the prior-year level,
Management Report of the Group and Management Report of Axel Springer AG 53
having increased by only 0.3 % in 2009 (Nielsen Media
Research). Based on preliminary estimates of the Central
Association of the German Advertising Industry (ZAW),
however, net advertising revenues declined by 8 %
across all media categories. At € 6.6 billion, the gross
advertising revenues of print media (excluding classified
ads and advertising supplements as well as media ad-
vertising) were considerably lower (– 6.4 %) than the
corresponding prior-year figure.
According to Nielsen Media Research, the volume of
newspaper ads for brand-name products (excluding
media advertising) was slightly higher (+ 0.7 %) than the
prior-year figure. While advertisers in the sectors of fi-
nance, automobiles, energy, other transportation, and
telecommunications reduced their newspaper advertising
expenditures, advertisers in the sectors of textiles and
clothing, retail, tourism, art and culture, and food in-
creased their newspaper advertising expenditures. Dis-
count stores in particular increased their advertising
expenditures substantially again. However, because
Nielsen tracks only a relatively small portion of newspa-
per advertisements, namely those for branded products
and services and the advertising supplements of large-
scale retailers, this data does not fully reflect the actual
business performance in this segment. According to
ZMG-Statistik, for example, the net advertising volume of
regional subscription newspapers (including classified
ads) declined by 12.1 %, while the ad volumes of national
newspapers (including classified ads) actually declined at
an average rate of 30.0 % in 2009 (Ulrich + Partner). In
the group of regional subscription newspapers, the vol-
ume of all classified ads was lower in 2009; this trend
was most pronounced with regard to the volume of job
ads, real estate ads, automobile ads, and event ads. In
2009, the volume of job ads was 39.3 % lower than the
corresponding prior-year figure.
At € 2.6 billion, gross advertising revenues in the German
general-interest magazine market (excluding media
advertising) were 14.8 % less than the corresponding
prior-year figure. Nearly all categories of general-interest
magazines were affected by declines in advertising reve-
nues, but the declines were most pronounced in the
categories of illustrated current-interest magazines
(– 19.0 %), business magazines (– 35.6 %), IT/telecom
magazines (– 26.0 %), monthly women’s magazines
(– 13.9 %), and automotive magazines (– 15.0 %). Only
health and parenting magazines experienced an increase
in advertising revenues (+ 0.5 %). In the case of general-
interest magazines, net advertising revenues also fared
much worse than gross advertising revenues.
According to Nielsen Media Research, gross advertising
revenues (excluding media advertising) in the German
online market (conventional banner advertising, exclud-
ing search-term marketing and affiliates) increased by
10.4 % in 2009, reaching € 1.5 billion. Also in this seg-
ment, data does not include any form of revenue-reducing
discounts so that the actual development was significantly
less favorable. According to estimates of OVK, the online
advertising market experienced net growth of 2 %–3 % in
2009. Again in 2009, the online services sector accounted
for the highest volume of advertising, with gross adver-
tising revenues of € 234.3 million (– 10.9 %). The in-
crease in the advertising revenues of conventional
online banner formats was driven mainly by the retail,
personal care products, automobiles, tourism, textiles
and clothing, and data processing sectors. Nonetheless,
the growth of conventional online advertising slowed
from the rates observed in prior years. For the first time
since online advertising revenues were first recorded in
2003, advertising expenditures actually declined in the
months of June (– 1.7 %) and August 2009 (– 7.2 %). The
online marketers association OVK calculated total online
gross advertising revenues (including affiliate networks
and search-term marketing) of € 4.1 billion (+ 12 %) for
the full year 2009.
According to Nielsen Media Research, advertising-
financed television in Germany experienced a 2.6 %
increase in gross advertising revenues (excluding media
advertising) in 2009 to reach € 8.74 billion. Whereas
private-sector TV stations expanded their gross advertis-
ing revenues by 3.2 % to € 8.39 billion, state-owned TV
stations saw their advertising revenues decline by 10.3 %
to € 342.1 million.
In the German radio market, gross advertising revenues
(excluding media advertising) increased by 2.1 % to
€ 1.16 billion in 2009. Whereas state-owned radio sta-
tions saw their gross advertising revenues increase by
54 Annual Report 2009 Axel Springer AG
8.3 %, the gross advertising revenues of private-sector
radio stations were nearly unchanged from the prior year
(– 0.1 %). Also in the case of electronic media, the grow-
ing divide between gross advertising revenues and net
advertising revenues is not reflected in these figures.
According to the current forecast of ZenithOptimedia,
the net advertising expenditures on newspapers and
magazines (including classified ads) in the international
markets in which Axel Springer is represented with its
own print media declined across the board in 2009. In
some cases, double-digit declines were registered.
Print Advertising Demand 2009 (Selection)
Change in net ad volume
compared to prior year
Newspapers Magazines
Germany
Poland1)
Switzerland2)
Hungary
France
Spain1)
Russia3)
– 6.0 %
– 19.3 %
– 20.5 %
– 14.3 %
– 7.1 %
– 9.0 %
– 18.5 %
– 13.5 %
– 8.0 %
– 19.1 %
– 25.0 %
– 28.5 %
– 54.3 %
Czech Republic2)
– 14.0 %
– 11.7 %
Source: Forecast according to ZenithOptimedia, Advertising Expenditure Forecasts
2009.
1) Excluding classified ads.
2) Gross advertising volume, excluding classified ads.
3) Print media in total.
Business developments and operating
performance of the Group
Acquisitions, divestitures, and strategic
partnerships
Axel Springer took additional steps to bolster the cross-
media orientation of its media portfolio in 2009. In the
business of domestic newspapers and magazines, the
Group sold various peripheral activities; in the interna-
tional print business, the Group reorganized its activities
in Poland and expanded its business in Russia; and in
the digital media business, the Group particularly made
significant investments in marketplaces and perform-
ance-based online marketing and expanded its activities
to the key British market.
Newspapers National
In the first half of 2009, we sold minority investments and
streamlined our regional newspaper portfolio to focus on
the markets of Hamburg and Berlin. In the spring of 2009,
Axel Springer AG already sold its investments in the re-
gional newspapers Leipziger Volkszeitung (50 %), Lübecker
Nachrichten (49 %), and Kieler Nachrichten (24.5 %), as
well as its equity interest in the north German publishing
holding company Hanseatische Verlags-Beteiligung (23 %),
to Verlagsgruppe Madsack, Hanover. The total purchase
price for this transaction was € 275 million. Of this amount,
€ 125 million was paid at the start of the second quarter
and the balance was deferred. It will be paid with interest
in regular installments over the period from 2011 to 2016.
Concurrently with the sale of the regional newspaper
investments to Verlagsgruppe Madsack, Lübecker
Nachrichten also purchased Axel Springer’s equity inter-
est in Ostsee-Zeitung in Rostock (50 %) for a purchase
price of € 35 million.
The sale of the newspaper Elmshorner Nachrichten to
the newspaper publisher Schleswig-Holsteinischer
Zeitungsverlag was finalized in August 2009. The same
buyer also purchased Axel Springer’s minority interest
(23.44 %) in Pinneberger Tageblatt in April 2009.
Last, in December, Axel Springer sold its minority inter-
est (14.5 %) in the regional newspaper Westfalen-Blatt
to the Dr. Ippen newspaper group. The sale was final-
ized in January 2010.
Magazines National
In the Magazines National segment, Axel Springer reor-
ganized its women’s and music titles in July 2009. As
part of this reorganization, the youth titles of Axel Springer
Mediahouse München (Popcorn and Mädchen) and the
women’s magazine Jolie were sold to Vision Media GmbH,
with its head office in Munich, and the 50 % interest in
Family Media GmbH & Co KG was sold to 2ME Holding
AG, Basle/Switzerland. Yam! had already been posi-
tioned as a purely online youth brand in January 2009
and the print edition was discontinued.
In the future, the two remaining major women’s maga-
zines BILD der FRAU and FRAU von HEUTE will be
managed along with the TV program guides in the new
Management Report of the Group and Management Report of Axel Springer AG 55
publishing group for TV program guides and women’s
magazines. The music titles ROLLING STONE,
MUSIKEXPRESS, and METAL HAMMER have been
assigned to the WELT Group and their editorial depart-
ments relocated from Munich to Berlin.
In May 2009, Axel Springer Financial Media GmbH
sold its monthly entrepreneur’s magazine MARKT und
MITTELSTAND in order to focus its print activities on
EURO and EURO am SONNTAG.
Print International
The most important change affecting the Group’s inter-
national print media was the purchase of a 49 %-equity
interest in Infor Biznes Sp. z o.o., a subsidiary of the
Polish publishing house Infor PL. This acquisition was
finalized in October 2009. In September, the daily news-
paper DZIENNIK had been combined with Gazeta
Prawna, a newspaper published by Infor Biznes, in order
to create a new premium newspaper with an accompa-
nying online presence. The new DZIENNIK GAZETA
PRAWNA improves Axel Springer’s market chances in
Poland’s highly competitive environment.
Axel Springer Russia further extended its market position
in that country by purchasing all the shares of G+J Russia.
In the future, the entire portfolio of G+J Russia, including
the established print titles GEO, GALA BIOGRAFIA, GEO
TRAVELLER, and GEOLENOK, will be operated under
license. The acquisition also covered various online sites,
including the parents’ portal moiroditeli.ru and the life-
style website moizvezdi.ru. This transaction is pending,
subject to the approval of the cartel authority.
Digital Media
Axel Springer expanded its market position in the seg-
ment of online marketplaces. In early September 2009,
Axel Springer increased its investment in StepStone ASA,
Oslo/Norway, from 33.26 % to 52.77 %, through the
purchase of additional shares. After further purchases,
mainly in connection with a public takeover bid and the
initiation of a squeeze-out process, Axel Springer held
100 % of this company’s equity as of the balance sheet
date. StepStone operates online job exchanges in 13
countries of Europe and is therefore one of the leading
providers in this segment. StepStone is also one of the
world’s leading providers of talent management software.
Axel Springer also stepped up its activities in the area of
performance-based online marketing significantly in 2009.
Effective in October 2009, Axel Springer and PubliGroupe
together purchased 50.1 % of the equity in Digital Window
Ltd., London/Great Britain, one of Britain’s leading pro-
viders of performance-based online marketing services,
by way of a joint intermediate holding company (Axel
Springer share: 52.5 %). By means of exercising the call
and put options stipulated in the corresponding agree-
ment, the remaining equity still held by the founders can
be purchased on a step-by-step basis in the future.
Digital Window ideally complements the activities of
zanox, especially from a regional perspective. The acqui-
sition in Great Britain, the biggest European market for
such services, creates an opportunity to accelerate the
company’s international growth and further develop the
offered services on a joint basis.
Moreover, Axel Springer and PubliGroupe, Lausanne,
established the framework conditions for the strategic
further development of zanox. This company will remain
under the joint management of the shareholders Axel
Springer and PubliGroupe (47.5 %), with Axel Springer
holding a majority interest of 52.5 %. Therefore, the reve-
nues and results of zanox will be completely consoli-
dated in the financial statements of the Axel Springer
Group in the future as well.
In consideration of the various tax and regulatory pro-
ceedings that have been brought against companies of
the Dogan Group, Axel Springer entered into an agree-
ment with Dogan Sirketler Grubu Holding A.S. (DH), the
parent company of the Dogan Group, in November 2009.
This agreement enhances the guarantees and protected
rights of Axel Springer with regard to its investment in the
TV subsidiary Dogan TV Holding A.S. (DTV), Istanbul/-
Turkey. Among other things, DH has guaranteed pay-
ment of all claims against Dogan Yayin Holding A.S.
(DYH), Istanbul/Turkey, as part of the stable-value clause,
which was extended to 2016. The judicial proceeding
against DTV for tax claims and penalties of approxi-
mately € 2.2 billion is still pending in the first instance. On
the other hand, the regulatory proceeding brought by the
56 Annual Report 2009 Axel Springer AG
media oversight authority RTÜK against DTV and various
subsidiaries was suspended indefinitely in January 2010.
In a recent ruling, the court of first instance declared that
about 90 % of the claims being pursued against DYH by
the Turkish tax authorities in the total amount of approxi-
mately € 425 million were unjustified. As part of this
proceeding, moreover, in early February 2010 a court
ordered the release of assets that had been frozen by
the Turkish tax authorities as security for its claims.
Based on the agreement made in November 2009,
DYH conducted a capital increase of approximately
€ 196.4 million for DTV in January 2010. As a result,
Axel Springer’s investment was reduced from 25.0 % to
initially 22.1 %. The agreement calls for another capital
increase of about € 188.0 million, which will further re-
duce Axel Springer’s investment in DTV to 19.9 %.
The contracts concluded in November 2008 for the
purchase of shares representing at least 9.1 % of DYH’s
equity and the reduction of Axel Springer’s investment in
DTV to 19.9 % have not yet been finalized, due to the
above-mentioned judicial proceedings. Nonetheless,
the agreement of November 2009 stipulated that Axel
Springer will purchase an equity interest of 29 % in DYH.
One of the preconditions for this acquisition is the suc-
cessful out-of-court settlement of the tax proceeding
against DTV. Because the proceeding is still pending
before the court, one precondition for the obligation to
finalize the agreement was not met. Nonetheless, DH
and Axel Springer continue to discuss the possible ac-
quisition of an investment in DYH by Axel Springer.
Consolidation of competencies
Along with the active management of the media portfolio,
particular emphasis was given also to the creation of
consolidated editorial competence centersin the Maga-
zines National segment and to the centralization of reach
marketing.
In April 2009, our six TV program guides were placed
under the control of a joint editorial department in Ham-
burg; in May 2009, the women’s magazines BILD der
FRAU and FRAU von HEUTE were likewise placed under
the control of a central editorial department and in the
following month the editorial departments of COMPUTER
BILD, COMPUTER BILD SPIELE, and AUDIO VIDEO
FOTO BILD were combined. The combined usage of
editorial capabilities will make it possible to sharpen the
profiles of the individual titles, exploit content-related
synergies and optimize costs.
In the first quarter of 2009, the central marketing unit
Axel Springer Media Impact broadened its portfolio by
also assuming responsibility for the marketing of
computerbild.de and sportbild.de. Thus, all the Group’s
newspapers, magazines, and related digital media, both
national and international, are now marketed centrally.
This move solidified Axel Springer Media Impact’s posi-
tion as Germany’s biggest cross-media media marketer
and as the first choice for online brand advertising. Ac-
cording to market studies, Axel Springer Media Impact
has widened its lead over competitors, based on gross
market shares. Towards the end of 2009, the Group’s
central marketing unit reached more than 75 million
newspaper and magazine readers in Germany and
unique users of content portals. Furthermore, the pro-
cess of integrating the national media properties under
the roof of a comprehensive and consistent marketing
concept was completed.
In the first quarter of 2010, Axel Springer Media Im-
pact will take over the telephone-supported acquisi-
tion of small to mid-sized advertising customers and
ad service from ASV Direktmarketing GmbH (asdirekt),
a wholly owned subsidiary of Axel Springer. Conse-
quently, asdirekt, which will be assigned to the WELT
Group, BERLINER MORGENPOST, and HAMBURGER
ABENDBLATT, will mainly be left with subscriber service
and support. The closer connection with market units
resulting from this move will enhance the effectiveness of
direct marketing in all distribution channels and generate
efficiency and quality advantages in subscriber service
and support.
Innovation and product development
Axel Springer upgraded its business model by further
expanding its spectrum of products and services in
2009. Highlights included the development of new
advertising formats, the intensive linkage of print and
online media, and the conception of paid digital content.
Management Report of the Group and Management Report of Axel Springer AG 57
Innovative advertising formats
Building on the extremely successful advertising format
known as “people’s products,” which was conducted in
November 2009 for the 100th time, Axel Springer Media
Impact introduced a new advertising format, “family
products,” at the start of 2010. Under this joint market-
ing concept, selected products are promoted on a
cross-media basis in BILD am SONNTAG and in other
high-reach publications of the BILD family. The new
marketing service has been very well received by ad-
vertising customers.
In addition, a performance-based remuneration system
for manufacturers of fast-moving consumer goods, the
first of its kind, was already presented in the first half of
2009. From the outset, this new system encountered a
high level of acceptance in the market. Under this ser-
vice, the cost is determined on the basis of the mea-
surable sales impact of the ad placements.
In close cooperation with BILD and Bild.de, moreover,
Axel Springer Media Impact created the innovative for-
mat of “user-generated advertising,” which is highly
regarded in the trade community. Under the campaign
known as “Make Your Own Ads in BILD,” readers,
artists, and advertising professionals were invited to
design the next advertising campaign for BILD. The
quality of the more than 10 thousand submissions
received by the editorial department exceeded every-
one’s expectations. Prizes were awarded to the best
ideas, which were then quickly implemented in the
marketing area. This format will be pursued and offered
to selected advertising customers in the future as well.
In the segment of performance-based online marketing,
zanox launched its “Web Services” in 2010. These
services provide improved access to the partner net-
work and web infrastructure so that customers can
implement innovative models to monetarize their web-
sites. zanox organized two contests to promote the
development of innovative applications and tools for the
Web Services interface. The response was extraordi-
nary and numerous ideas have since been imple-
mented. In the zanox Application Store, a B2B innova-
tion platform that opened in June, developers can pre-
sent their applications live and advertisers can make
use of new, highly promising tools.
Further development of media formats
Seizing upon the latest trends in reader and user behav-
ior, Axel Springer developed new formats and made
adjustments to existing publications with the support of
in-depth market research. In the print media, the follow-
ing projects were especially noteworthy:
(cid:132) A pilot project for distributing BILD in a handy tabloid
format. When tested in Munich’s commuter rail sys-
tem, the new format met with strong interest among
readers, retailers, and the trade press. Aimed primarily
at young readers and commuters, the new tabloid-
format BILD will be optimized in 2010.
(cid:132) The market introduction of HÖRZU WISSEN, a high-
quality, bimonthly magazine that presents topics in
the areas of nature and the environment, health, his-
tory, and science in a reputable, interesting, and
credible manner.
Axel Springer also extended its strategic partnerships in
areas such as moving-image and regional marketing,
and boosted its gross market shares.
Furthermore, Axel Springer Media Impact has been
using the “Smart AdServer” technology developed by
auFeminin.com since mid-2009. Using this technology,
we can help our customers design their advertising
campaigns on a quick, intuitive basis using innovative
video and rich-media formats.
(cid:132) In response to strong reader interest, our specialist
publication for classic cars both old and young, AUTO
BILD KLASSIK, will now appear every two months, in-
stead of four times a year, starting in 2010.
(cid:132) The launch of BEOBACHTER Natur, a quarterly maga-
zine aimed at nature-loving readers in Switzerland.
Due to the positive response of readers and advertis-
ing customers, this title will now appear on a nearly
monthly basis (ten issues a year), starting in 2010.
58 Annual Report 2009 Axel Springer AG
Axel Springer also came out with numerous innovations
in its digital media business, particularly:
(cid:132) Expanded, personalized content settings on Bild.de.
As of May 2009, users can configure the news ap-
pearing on Bild.de to suit their own particular interests
and link it to their own homepage, in line with the slo-
gan “Make Your Own Bild.de.” Also, the web-TV of-
fering was expanded, in that every major news story
is now accompanied by an internally produced news
video. Furthermore, Bild.de further expanded its of-
fering of innovative video formats by adding a new
movie portal, among other things. In cooperation with
computerbild.de and autobild.de, Bild.de offers soft-
ware downloads and a video channel for automobiles.
(cid:132) Intensive linkage with social networks in the German-
language Internet. Since the third quarter, for in-
stance, Axel Springer’s portals present news stories
on Facebook, Twitter, and XING, along with a daily
newsletter.
(cid:132) The first-ever print edition of a soccer guide by
transfermarkt.de, timed to coincide with the start of
the German soccer season in September 2009. This
voluminous reference work covering almost 300
pages demonstrates the fact that “cross-media” at
Axel Springer is not a one-way street: besides trans-
ferring print content to online media, we also transfer
web content to print media.
(cid:132) The introduction of new content portals in the Group’s
international markets. In Poland, Axel Springer launched
the college student portal and online career center
students.pl, plus a Polish version of auFeminin.com,
known as oFeminin.pl. In Switzerland, Axel Springer
on the basis of finanzen.net completely overhauled
and relaunched its investors’ portal stocks.ch, and the
electronic program guide tele.ch launched in the sec-
ond quarter, offering convenient search functions,
plus all the program tips contained in the print edition.
Establishment of paid premium-content offers
When it comes to the development and introduction of
paid premium-content offers on the Internet, Axel
Springer has played a pioneering role in the publishing
industry. As part of our premium initiative, several of our
German newspapers introduced innovative paid-content
subscriptions for the iPhone and Internet in the second
half of 2009. Subscribers of these services benefit from
attractive content, easy-to-use functions and services,
and simple billing options.
As of December 2009, various newly developed iPhone
applications for BILD and WELT are available for
download under exclusive subscription plans. Their unri-
valled navigation features optimally exploit the capabilities
of these mobile communication devices. Furthermore,
subscribers receive much more than what is available
under the existing, no-cost mobile services of BILD.de and
WELT ONLINE. For example, they can read pdf versions
of the print editions of BILD and WELT KOMPAKT on the
evening before the newspapers are distributed. These
apps have gotten off to a very successful start. Since the
beginning of 2010, in fact, we have registered more than
100 thousand downloads. Furthermore, the paid mobile
subscription service known as “My Club Premium” has
been available to users since the third quarter of last year.
With this service, soccer fans receive personalized, up-to-
date news from the First and Second National Soccer
Leagues via their iPhones. Another service that went live in
the third quarter of 2009 was the new “Bild.de Super-
Manager,” a fantasy league in which more than
100 thousand soccer teams have been created by users.
As a complement to its advertising-financed movie portal,
Bild.de now also offers a paid movie service under video-
thek.bild.de. Another paid content service is the WELT am
SONNTAG e-mag, the new digital magazine produced by
Germany’s biggest premium Sunday newspaper. The
e-mag features news stories from all departments, in an
optically rich multimedia presentation. Finally, the premium
newsletter WELT LAGE provides a digital news survey
with direct links to news stories and commentary from
media outlets and blogs.
Management Report of the Group and Management Report of Axel Springer AG 59
As of December 2009, the websites of BERLINER
MORGENPOST and HAMBURGER ABENDBLATT offer
both free content and paid premium content. Since that
time, non-subscribers can access the primarily local and
regional news stories and the online archive only by
paying a fee.
Since the fourth quarter of 2009, a premium application
of the news portal bz-berlin.de is offered in the iTunes
Store. Subscribers of this new mobile service can access
all the news, reports, and photo galleries of Berlin’s big-
gest newspaper anywhere and at any time. The “floating
navigation” feature allows the application to determine the
user’s exact location, so that he or she can navigate
through the various districts in a targeted manner and find
just the right local stories twenty-four hours a day.
Cross-media linkage
Axel Springer continued its intensive efforts to link its
newspapers and magazines with its digital media in 2009.
For example, BILD and BILD am SONNTAG spatially
integrated their editorial teams on a cross-media basis
across all departments. Furthermore, 250 BILD reporters
were equipped with mini-cameras so they can record
online video content.
In July, the online portal of BERLINER MORGENPOST
launched a newsletter “Berlin in the Morning,” produced
in the integrated newsroom, which provides an overview
of life in the capital city every work day. In cooperation
with immonet.de, moreover, BERLINER MORGENPOST
and HAMBURGER ABENDBLATT initiated the cross-
media marketing of real estate ads in the third quarter of
2009. Consequently, online ads and newspaper ads can
now be booked together, in a high-reach and also low-
cost combination.
Axel Springer also seeks to network its digital media
together. As an example, the cooperation between
sportbild.de and transfermarkt.de and between
computerbild.de and the online games provider
gamigo.de was intensified in 2009.
Finally, we achieved a milestone also with regard to the
intensive linkage of TV program guides with digital TV
navigation. The new self-learning software program
watchmi.tv by Axel Springer Digital TV, which operates
as a plug-in for the Windows Media Center, records TV
shows according to the users’ individual preferences and
organizes them into personal TV channels. Because it
allows for highly personalized advertising, this service
has opened up new revenue sources as well. In coop-
eration with Axel Springer Digital TV, the TV program
guides published in Switzerland overhauled their com-
mon website and added a new electronic program guide.
Awards
The innovation capacity and the excellent journalistic
quality of our media were again recognized in 2009 by
means of numerous distinctions and awards.
In this year’s Best of Newspaper Design contest spon-
sored by the U.S. Society of News Design, WELT am
SONNTAG was honored as the World’s Best Designed
Newspaper for its outstanding design, graphics, and
photos. In addition, Germany’s leading premium Sunday
newspaper received this year’s Herbert Quandt Media
Prize for its “Kinderleicht” series, which presents com-
plex economic and financial topics in a way that children
can understand. Also, WELT KOMPAKT received the
World Young Reader Prize 2009 of the World Associa-
tion of Newspapers for its trailblazing editorial strategies.
In another distinction, the integrated newsroom of WELT
Group/BERLINER MORGENPOST was chosen as one of
the “selected places” as part of the location initiative
“Land of Ideas” in February 2009, in recognition of its
trendsetting contributions to the media landscape. Fur-
thermore, the WELT Group received the Cross-Media
Award 2009 of the World Association of Newspapers
and News Publishers (WAN-IFRA) for having run the best
international cross-media campaign of any newspaper
publishing house in the world.
BERLINER MORGENPOST also placed very well in the
Best of Newspaper Design contest, winning six Awards
of Excellence, especially for the layout and design of the
weekly supplement BERLINER ILLUSTRIERTE. And the
editorial team of BERLINER MORGENPOST received
two awards: the coveted Theodor Wolff Award of the
Federation of German Newspaper Publishers for out-
standing reporting and the German Local Journalist
60 Annual Report 2009 Axel Springer AG
Award of the Konrad Adenauer Foundation for a series
of articles. Furthermore, Die WELT received the Media
Award of the insurance company AachenMünchener
Versicherung for its consumer section. Finally, various
reporters and editors of the Axel Springer Group re-
ceived individual journalist awards.
HAMBURGER ABENDBLATT received the World Young
Reader Prize 2009 for its youth project “Leseecke,”
under which schools receive free subscriptions from so-
called subscription mentors. Furthermore, an exemplary
local news report was honored with the “German Re-
porter Award 2009” of the Reporter Forum.
Our magazines in Germany and abroad also received
various important awards in 2009. In late March 2009,
for example, Germany’s top athletes again chose
SPORT BILD as the best sports magazine. Consequently,
SPORT BILD received the prestigious gold-medal HER-
BERT Award for the third year in a row. In France, the
biweekly cooking magazine VIE PRATIQUE GOURMAND
was honored by the French Publishers’ Association and
in Russia, our publications FORBES, NEWSWEEK, and
COMPUTER BILD were selected as Press Leaders 2009
in their respective market segments by the Russian
Press Association.
In the Digital Media segment, our online properties im-
monet.de, StepStone, zanox, and Digital Window all won
awards in 2009. At the biggest Internet User Award in
the German-speaking world, immonet.de was named
the “Online Star 2009” as the most popular website in
the category of “Money and Career.” The real estate
marketplace was also singled out for its innovative radio
campaign and was named the best real estate portal in
the vote for the Website of the Year.
In the ranking of the 500 best software-as-a-service
(SaaS) providers, StepStone’s Solutions Division re-
markably achieved sixth place, making it the most highly
ranked company in Europe. For the second year in a row,
the German website StepStone.de was elected as hav-
ing the best career services offering in connection with
the audience award Website of the Year.
The industry association iBusiness awarded the title of
Best Affiliate Network to zanox. Furthermore, zanox was
named one of Europe’s ten most innovative Internet
companies for its TechCrunch technology portal. The
international success of zanox is reflected in its top ten
placement in the U.S. affiliate networks ranking of the U.S.
Website Magazine, among other distinctions. As part of a
comparative test conducted by Internet World, zanox’s
website achieved the top mark. Among the factors cited
for this decision was the high quality of the contacts and
transactions generated for advertising companies.
As part of the a4u Awards 2009, Digital Window was
named Innovative Network of the Year for the third year
in a row, as well as the Publisher’s Choice of Network.
Business development and performance – Group
Despite the recessionary environment, Axel Springer
performed well in its principal sales markets, especially
compared with its competitors. At € 2,611.6 million, total
revenues were 4.3 % less than the corresponding prior-
year figure (PY: € 2,728.5 million); adjusted for consoli-
dation effects, they were down 5.6 %. Adjusted for for-
eign exchange effects, consolidated revenues were only
3.1 % less than the corresponding prior-year figure. Total
revenues were weighed down especially by the depre-
ciation of eastern European currencies.
Revenues
in € millions
Circulation
Advertising
Other
264.7
1,248.1
1,215.8
296.9
1,138.5
1,176.2
2,728.5
2008
2009
2,611.6
Management Report of the Group and Management Report of Axel Springer AG 61
At € 1,176.2 million, circulation revenues were 3.3 %
less than the prior-year figure (PY: € 1,215.8 million) and
accounted for 45.0 % of total revenues. Thanks to the
strong market position of our print media, the circulation
declines were partially offset by selective copy price
increases. The circulation revenues of the Group’s Ger-
man newspapers were actually slightly higher than the
corresponding figure for 2008, while the international
print media suffered a substantial decrease in circulation
revenues.
At € 1,138.5 million (PY: € 1,248.1 million), the
advertising revenues for 2009 were 8.8 % less than
the corresponding figure for 2008 and accounted for
43.6 % of total revenues. As expected, the advertising
revenues of the print media experienced an even weaker
development, declining by 17.9 % in 2009, in a reflection
of the extreme restraint exhibited by advertising custom-
ers in the Group’s national and international markets. On
the other hand, the advertising revenues of the Digital
Media segment exhibited strong growth of 24.1 %.
At € 296.9 million, the other revenues were 12.2 %
higher than the corresponding prior-year figure (PY:
€ 264.7 million). Aside from moderate organic growth of
1.9 %, this increase resulted mainly from consolidation
effects, including in particular the first-time consolidation of
StepStone and the first full-year consolidation of gamigo.
Comparing the revenue performance of the different
segments, the national print media fared better than the
international print media, with national newspapers posting
a 5.0 % decrease and national magazines posting an
8.2 % decrease in revenues, while the revenues of the
international print media were down 23.9 % in 2009. Ac-
counting for 46.5 % of total revenues, nearly unchanged
from the prior year (PY: 46.8 %), the Newspapers National
segment was again the biggest contributor of Group-wide
revenues by a wide margin. The revenues of the Digital
Media segment posted strong growth of 24.4 %.
Pro-forma digital media revenues amounted to
€ 569.0 million (PY: € 543.5 million). Consequently, the
proportion of total revenues represented by digital media
revenues rose to 21.0 % (PY: 18.8 %). This figure in-
cludes the revenues of the companies acquired during
the course of 2008 and 2009, especially StepStone,
Digital Window, and gamigo, on the basis of unaudited
financial information.
International and Digital Media Revenues
International Revenues
as Percent of Total
Revenues
Digital Media Revenues
as Percent of Total
Revenues (Pro forma)
21.9 %
21.0 %
21.0 %
18.8 %
Segment Revenues 2009
Newspapers National
Magazines National
Print International
Digital Media
Services/Holding
18.0 %
11.9 %
19.8 %
3.8 %
46.5 %
2008
2009
2008
2009
As a result of unfavorable foreign exchange effects and
the particularly difficult market conditions in eastern
Europe, the international revenues suffered a dispro-
portionately large decline of 8.2 % to € 547.6 million (PY:
€ 596.8 million). Consequently, the proportion of total
consolidated revenues represented by international reve-
nues declined from 21.9 % in 2008 to 21.0 % in 2009.
62 Annual Report 2009 Axel Springer AG
Under the assumption of constant exchange rates, the
revenues generated in our international markets experi-
enced a more moderate decline of 2.7 % in 2009.
At € 2,383.5 million, the total expenses contained in
the earnings before interest, taxes, depreciation, and
amortization (EBITDA) were 0.8 % higher than the corre-
sponding prior-year figure (PY: € 2,365.2 million). This
increase resulted mainly from the consolidation of Step-
Stone (especially personnel expenses) and Digital Window
(especially purchased goods and services). Excluding
acquisition effects, the total expenses were less than the
corresponding prior-year figure. This development is a
reflection of the efficient cost management practiced by
Axel Springer again in 2009. The total expenses included
restructuring expenses of € 74.9 million (PY: € 29.2 million).
Furthermore, we made additional investments in our BILD
and WELT brands in the fourth quarter of 2009.
The purchased goods and services declined from
€ 945.4 million in 2008 to € 886.4 million in 2009. The
6.2 % decrease resulted primarily from the lower print
circulation runs, which led to lower production costs and
paper consumption. A countervailing effect emanated
from the organic growth and acquisitions in the business
of performance-based online marketing. At 33.9 %, the
ratio of purchased goods and services was slightly less
than the corresponding ratio for 2008 (34.6 %).
At € 791.9 million, the personnel expenses were 9.6 %
higher than the corresponding prior-year figure (PY:
€ 722.5 million). The significant increase was due in part
to the non-recurring effect of the substantial expenses
incurred for lay-off mitigation plans and partial early re-
tirement schemes (known as Altersteilzeit in Germany)
and in part to the first-time consolidation of new subsidi-
aries. In the course of these, the average workforce rose
from 10,666 in 2008 to 10,740 in 2009.
and impairments were slightly higher in 2009, particularly
due to purchase price allocation effects associated with
the companies included in the consolidated financial
statements for the first time in 2009.
The other operating income/expenses was negative,
at € – 634.5 million (PY: € – 611.8 million). Aside from a
large number of minor items, the other operating income/
expenses for 2009 also contained income from the dis-
posal of non-current assets (€ 9.1 million) and income
from the Kirch insolvency (€ 7.6 million). At € 705.1 million,
the other operating expenses were slightly higher, also
due to consolidation effects, than the prior-year figure of
€ 697.3 million. The largest constituent items of other
operating expenses were mailing and postage expenses
and advertising expenses.
The income from investments in the amount of
€ 212.1 million was mainly composed of the profit on the
sale of regional newspaper investments and impairment
losses in non-current financial assets. The prior-year
value of € 407.8 million had been composed primarily of
the profit on the sale of shares in ProSiebenSat.1 Media
AG and impairment losses in non-current financial assets.
Adjusted for these non-recurring effects, the investment
income amounted to € 21.7 million (PY: € 33.1 million).
The net financial income/expenses improved mark-
edly from € – 61.5 million in 2008 to € – 25.0 million in
2009. The most significant component was an income
item of € 9.4 million (PY: expenses of € 27.8 million)
from the fair value measurement of the call options for
the purchase of shares in Axel Springer AG that had
been granted by the shareholders H&F Rose Partners,
L.P. and H&F International Rose Partners, L.P. Further-
more, we paid down financial liabilities and borrowed a
smaller amount under the available credit facilities, on
average, than in 2008 (see page 77).
At € 92.4 million, the depreciation, amortization, and
impairments were 17.6 % less than the corresponding
prior-year figure (PY: € 112.1 million). The comparison
figure for 2008 had been influenced by impairment
losses of € 25.7 million in the item of other intangible
assets (title rights) in the Magazines National segment.
Disregarding this effect, the depreciation, amortization,
The income taxes for 2009 amounted to € 83.8 million
(PY: € 117.2 million). That corresponds to a tax rate of
21.1 % (PY: 17.0 %).
Earnings before interest, taxes, depreciation, and amorti-
zation (EBITDA) adjusted for non-recurring effects and
effects from purchase price allocations, which is the central
Management Report of the Group and Management Report of Axel Springer AG 63
financial performance indicator used by Axel Springer,
amounted to € 333.7 million in 2009. As expected, that
was markedly less than the corresponding prior-year
figure (PY: € 486.2 million). This figure included restructur-
ing expenses of € 74.9 million (PY: € 29.2 million), as well
as higher marketing expenses compared to the prior year.
EBITDA
in € millions
EBITDA margin in %
17.8 %
486.2
12.8 %
333.7
2008
2009
The consolidated net income amounted to
€ 313.8 million (PY: € 571.1 million). That corresponds
to diluted earnings per share of € 10.19 (PY: € 18.54).
Both figures contained significant non-operating effects.
The figure for 2009 included the profit on the sale of
regional newspaper investments (€ 214.4 million) and
the figure for 2008 included the profit on the sale of
shares in ProSiebenSat.1 Media AG (€ 438.3 million).
Other non-operating factors were impairment losses in
non-current financial assets (2009: € – 20.5 million; PY:
€ – 63.5 million), effects of purchase price allocations
(2009: € – 26.7 million; PY: € – 46.5 million), income
from the Kirch insolvency (2009: € 7.6 million; PY:
€ 6.2 million), the restatement of H&F options (2009:
€ 9.4 million; PY: € – 27.8 million), and other effects
(2009: € – 13.5 million; PY: € – 0.5 million). The taxes
attributable to these effects amounted to € 9.5 million
(PY: € – 10.4 million). Adjusted for non-operating effects,
the consolidated net income was € 152.6 million (PY:
€ 254.5 million). Based on the weighted average shares
outstanding in 2009, adjusted diluted earnings per share
declined from € 8.55 in 2008 to € 5.13 in 2009.
Business development and performance –
Segments
Newspapers National
Axel Springer’s newspapers performed well on the whole,
considering the very difficult advertising and press distribu-
tion market. Despite the reduced marketing budgets of
advertisers, the Group’s newspapers managed to limit the
declines in their operating business, with the exception of
classified ads. Considering the tough market environment,
the development of their circulation and reach numbers
was relatively stable. Thus, Axel Springer reinforced its
leading position in the German newspaper market.
Europe’s biggest daily newspaper BILD impressively
demonstrated its economic and journalistic strength
amid the economic and financial crisis. With an average
paid circulation of 3.2 million, BILD kept its reach on the
high prior-year level of 11.6 million readers (all reach data
according to ma 2010 Pressemedien I, unless otherwise
indicated). BILD’s operating performance was supported
by the image campaign launched in March 2009, in
which well-known figures from the worlds of politics,
sports, culture, and entertainment express their uncen-
sored opinions of BILD. According to our internal market
research, the image campaign has boosted the brand
image of BILD with regard to acceptance and likeability.
Mainly as a result of the successful clearance-oriented
marketing campaigns of retail companies, BILD ex-
tended its leading position among print media in the
advertising market. Furthermore, several major advertis-
ing customers were acquired on the basis of the per-
formance-based remuneration system developed by Axel
Springer Media Impact. BILD also posted gains on the
distribution side, as the moderate circulation declines
were more than made up by the positive effect of the
copy price increase implemented in May 2008.
With an average paid circulation of 1.7 million copies,
BILD am SONNTAG successfully defended its position
as Germany’s highest-reach weekly newspaper. Also in
the case of BILD am SONNTAG, the circulation decline
was offset by the positive effect of the copy price in-
crease implemented in May 2008.
64 Annual Report 2009 Axel Springer AG
Circulation Newspapers National
Average paid circulation, IVW data
2009 Change yoy
BILD
3,179,796
– 3.7 %
BILD am SONNTAG
1,655,212
– 3.7 %
DIE WELT/WELT KOMPAKT
266,140
– 3.3 %
WELT am SONNTAG
402,541
0.1 %
HAMBURGER ABENDBLATT
238,568
– 4.3 %
BERLINER MORGENPOST
144,214
– 2.0 %
B.Z./B.Z. am SONNTAG
188,835
– 4.6 %
Our premium newspaper DIE WELT, along with the tab-
loid format WELT KOMPAKT, suffered only moderate
circulation declines in 2009, while improving its reach
among the most important target groups. According to
Leseranalyse Entscheidungsträger (LAE 2009), DIE WELT
and WELT KOMPAKT together reach 200 thousand
decision-makers in business and government. Including
WELT ONLINE and WELT am SONNTAG, the WELT
Group had more readers than any other premium news-
paper in Germany. According to Verbraucher-Analyse
2009-III, the cross-media net reach of the WELT Group
was 2.4 million readers and users. By means of the inno-
vation campaign launched in November 2009, WELT
KOMPAKT is seeking to further enhance its appeal for
young readers in German cities; to that end, the innova-
tion campaign is being accompanied by a marketing
campaign. In addition, WELT KOMPAKT is now available
for subscription in even more regions of Germany.
Like B.Z. am SONNTAG, the newsstand newspaper B.Z.
sustained circulation losses in 2009. Nonetheless, it
successfully defended its strong market position in the
Berlin-Brandenburg distribution area, with an average
paid circulation of 188.8 thousand copies. Furthermore,
it kept its reach stable and picked up a large number of
new users with its completely overhauled news and city
portal bz-berlin.de. Due to its lesser dependence on
classified ads, its ad volume was more stable than that
of other regionally oriented newspapers.
Having sustained a decrease of only 2.0 % in its average
paid circulation, BERLINER MORGENPOST performed
better than the field of competitors in the past year. Due
to the high quality of its journalism, coupled with its re-
gional expertise, for which it won numerous awards
again in the current year, the newspaper’s readers tend
to be very loyal. In line with the general market trend of
classified ads, BERLINER MORGENPOST experienced
significant declines in its advertising business, particu-
larly in its extensive section of classified ads for real
estate, jobs, and travel offers. The situation was similar
for HAMBURGER ABENDBLATT, which is being pro-
duced in one of Europe’s most modern newsrooms;
following the relocation in July 2009, the print and online
editorial teams work directly together on a multimedia
basis. Initiated in the third quarter of 2009, the coopera-
tion between the newspapers BERLINER MORGENPOST
and HAMBURGER ABENDBLATT and the online portal
immonet.de has gotten off to a successful start: In the
fourth quarter, already 15 % of real estate ads placed were
ordered as part of a high-reach, cross-media combination.
Key Figures Newspapers National
in € millions
2009
2008
Change
External revenues
1,213.7
1,277.6
– 5.0 %
Share in cons. revenues
46.5 %
46.8 %
Circulation revenues
Advertising revenues
Other revenues
631.8
548.0
33.9
625.8
623.4
28.3
1.0 %
– 12.1 %
19.6 %
EBITDA
243.8
348.9
– 30.1 %
EBITDA margin
20.1 %
27.3 %
At € 1,213.7 million, the revenues of the Newspapers Na-
tional segment were only 5.0 % less than the corresponding
figure for 2008 (PY: € 1,277.6 million). At € 631.8 million,
the circulation revenues were 1.0 % higher than the prior-
year figure (PY: € 625.8 million). This increase resulted
mainly from the positive effects of the copy price increases
implemented in 2008 for BILD, BILD am SONNTAG and
B.Z., and from the copy price and subscription rate in-
creases implemented in 2009 for the titles of the WELT
Management Report of the Group and Management Report of Axel Springer AG 65
Group and the regional media HAMBURGER ABENDBLATT
and BERLINER MORGENPOST. Adversely impacted as
they were by the extreme restraint exhibited by advertising
customers, the advertising revenues of € 548.0 million
were 12.1 % less than the prior-year figure (PY: € 623.4 million).
Regional newspapers, which are more dependent on classi-
fied ads, suffered an above-average decline; this market
segment has been especially hard hit by the recession. On
the other hand, BILD was among the winners with respect
to advertising revenues, thanks to the success of clearance
sale-oriented advertising formats in the current market
environment: Its advertising revenues were nearly as high as
the corresponding prior-year figure.
At € 243.8 million, EBITDA of the Newspapers National
segment was substantially less than the prior-year figure
of € 348.9 million, as expected. Lower advertising reve-
nues were mainly responsible for this 30.1 % decrease.
Another factor was represented by restructuring ex-
penses in the amount of € 50.4 million (PY: € 18.7 million).
At € 4.8 million, the income from investments was like-
wise substantially lower than the corresponding prior-year
figure (PY: € 19.9 million), due to the non-recurrence of
the net income contributions of the minority investments
in regional newspapers sold. Another factor weighing on
EBITDA was the higher expenses associated with the
intensified marketing for BILD and WELT in the fourth
quarter. Despite the higher level of charges, the EBITDA
margin was 20.1 % in 2009 (PY: 27.3 %).
Magazines National
Overall, the circulation and reach numbers of our maga-
zines exhibited a more stable development than those of
competing titles, so that market shares were gained in
nearly every major segment. Having suffered only a slight
decrease in the number of copies sold, our magazines
reached more readers than in the prior year. Thus, Axel
Springer reinforced its market position as the third-biggest
magazine publisher in Germany. On the other hand, our
magazines were not unaffected by the substantial declines
in the German market for general-interest magazines.
Furthermore, the restraint exercised by advertising cus-
tomers led to reduced ad sales in almost all categories. In
response to the lower revenues, we implemented various
efficiency enhancement measures, including the consoli-
dation of editorial departments, in particular (see page 56).
Such measures have significantly improved the competi-
tiveness of the Magazines National segment, an advan-
tage that will come to bear in future years.
Circulation Magazines National
Average paid circulation, IVW data
2009 Change yoy
TV DIGITAL
HÖRZU
FUNK UHR
BILDWOCHE
TV NEU
1,760,054
– 13.6 %
1,431,060
632,828
– 1.4 %
– 6.5 %
179,205
– 10.2 %
128,987
– 12.6 %
BILD der FRAU
FRAU von HEUTE
1,017,192
– 0.4 %
194,683
– 19.4 %
COMPUTER BILD
COMPUTER BILD SPIELE
683,048
260,561
– 5.3 %
– 6.9 %
AUDIO VIDEO FOTO BILD
169,080
– 15.6 %
AUTO BILD
AUTO TESTS
AUTO BILD ALLRAD
AUTO BILD SPORTSCARS
617,175
217,663
64,134
65,574
0.2 %
0.6 %
– 2.6 %
1.3 %
SPORT BILD
473,831
– 1.5 %
EURO
152,362
– 12.5 %
EURO am SONNTAG
98,888
– 11.3 %
ROLLING STONE
MUSIKEXPRESS
METAL HAMMER
56,378
53,558
46,997
5.9 %
5.0 %
2.7 %
Axel Springer’s TV program guides and women’s
magazines extended their respective market positions in
the high-price segment. At 3.1 million readers, the reach
of the biweekly TV DIGITAL was slightly higher than it was
in the prior year; this gain was achieved in spite of the
change of encryption system by the leading provider of
German pay-TV at the end of 2008. TV DIGITAL is still
66 Annual Report 2009 Axel Springer AG
the highest-circulation TV program guide in the high-
price segment and the No. 1 for digital TV.
Having sustained a circulation decrease of only 1.4 %,
HÖRZU, the No. 1 weekly TV program guide in Germany,
fared much better than other competing high-price titles.
Notwithstanding a slight decrease in its reach, HÖRZU
still reaches more readers than any other weekly TV
program guide in Germany. The stable development was
aided by the supplement HÖRZU DIGITAL, which con-
tains the program listings of 58 digital broadcasters.
Furthermore, the recently launched knowledge magazine
HÖRZU WISSEN performed very well from the outset.
Having sustained only a bare decrease of 0.4 %, the paid
circulation of BILD der FRAU remained above the level of
1 million copies, which was a remarkable success con-
sidering the tough predatory competition that still charac-
terizes the women’s media segment. Thus, BILD der
FRAU further extended its lead over the competition. Also
with respect to reach, BILD der FRAU successfully de-
fended its unchallenged market leadership position: ac-
cording to ma 2010 Pressemedien I, it reached 5.8 million
female readers, almost as many as in the prior year.
FRAU von HEUTE benefited from the editorial team inte-
gration with BILD der FRAU and especially from the new
content and graphic concept developed there. Though
much lower than the prior-year figure, the paid circulation
managed to recover during the course of the year.
For the year as a whole, the performance of Axel Springer’s
computer, automotive, and sports magazines was
mixed. While the big automotive magazines actually
managed to increase their average paid circulation slightly,
the circulation numbers of the sports magazines did not
quite match the respective prior-year levels; within this
group, computer magazines experienced the worst
declines.
Despite its lower circulation, COMPUTER BILD main-
tained its leading market position by a wide margin.
COMPUTER BILD SPIELE and the completely over-
hauled AUDIO VIDEO FOTO BILD likewise held on to
No. 1 positions in their respective specialty segments.
Axel Springer’s automotive magazines performed relatively
well and actually achieved a slight circulation increase,
counter to the market trend. AUTO BILD, which is Ger-
many’s most-popular and best-known automotive maga-
zine according to a study conducted by TNS Emnid,
achieved a 0.2 % increase in its circulation. Readers re-
sponded well to the expanded length of the magazine,
which has included eight more pages for a slightly higher
copy price since March 2009, and to the new supplement
AUTO BILD MOTORSPORT. With an average paid circula-
tion of 617.2 thousand copies, AUTO BILD increased its
circulation market share to 57.7 % and so reaffirmed its
status as Europe’s biggest automotive magazine, with a
wide lead over the second-biggest competitor. Produced
in cooperation with autobild.tv and timed to coincide with
the International Automobile Show in September, the
multimedia edition of AUTO BILD generated especially
high circulation numbers and ad volumes, as did the re-
porting on the subject of the “The Golden Steering Wheel”
Award in November 2009, which was awarded in coop-
eration with BILD am SONNTAG and with sister titles from
25 countries of Europe for the first time.
AUTO TEST, the buyer’s guide published by AUTO BILD
and Germany’s leading monthly automotive magazine,
increased its circulation and market share, as did AUTO
BILD SPORTSCARS, the monthly magazine for lifestyle
and sports cars. AUTO BILD ALLRAD, Europe’s biggest
magazine devoted to all-wheel drive vehicles, managed to
extend its market leadership position despite its slightly
lower circulation. In response to strong reader interest,
AUTO BILD KLASSIK, our specialty title for classic cars
both young and old, will appear on a bimonthly basis,
instead of four times a year, starting in 2010.
After suffering significant declines in the first six months
of 2009, SPORT BILD stabilized its circulation numbers
in the second half of the year by means of a new special
edition concept. For example, the popular special edi-
tions published in conjunction with the start of the na-
tional soccer league and the Champions League gener-
ated strong sales. At 473.8 thousand, the full-year aver-
age paid circulation of Europe’s biggest sports magazine
was 1.5 % less than the corresponding prior-year figure.
Management Report of the Group and Management Report of Axel Springer AG 67
As a result of the negative developments in the financial
and capital markets, the operating environment for Axel
Springer’s business publications was especially diffi-
cult. The monthly magazine EURO and the weekly busi-
ness and finance newspaper EURO am SONNTAG each
sustained circulation losses of more than 10 %, while
competing titles suffered similar declines.
The advertising revenues of our finance and stock mar-
ket portals were held down by the strained condition of
the capital markets. Axel Springer Financial Media re-
sponded immediately to the shortfall by making struc-
tural adjustments designed to lower costs. Among the
measures taken, an agreement was reached with em-
ployees of the print titles to accept shortened work hours
for a period of four months.
Axel Springer’s music magazines all performed well in
2009. ROLLING STONE, MUSIKEXPRESS, and METAL
HAMMER each sold more copies than in the prior year.
The relocation of ROLLING STONE’s editorial staff to
Berlin and their proximity to the WELT Group provided
fresh editorial impetus. Pleased by the magazine’s exclu-
sive supplements, among other things, ROLLING
STONE’s readers rewarded the publication with a 5.9 %
circulation increase.
Key Figures Magazines National
in € millions
External revenues
2009
517.8
2008
564.1
Change
– 8.2 %
Share in cons. revenues
19.8 %
20.7 %
Circulation revenues
Advertising revenues
Other revenues
358.8
140.2
18.8
373.6
176.0
14.5
– 4.0 %
– 20.3 %
29.5 %
EBITDA
55.0
88.8
– 38.1 %
EBITDA margin
10.6 %
15.7 %
At € 517.8 million, the total revenues of the Magazines
National segment were 8.2 % less than the correspond-
ing prior-year figure (€ 564.1 million). The circulation
revenues of € 358.8 million were 4.0 % less than the
prior-year figure (PY: € 373.6 million). Adjusted for de-
consolidation effects in connection with the sale of Jolie
and the youth magazines Mädchen and Popcorn, and
for the non-recurring effect associated with the discon-
tinuation of Yam!, the decrease amounted to 2.4 %. The
declines in TV program guides and computer magazines
were partially made up by higher revenues in the auto-
motive and sports media, which resulted in part from
copy price increases. At € 140.2 million, the advertising
revenues were 20.3 % less than the prior-year figure (PY:
€ 176.0 million). Axel Springer’s business publications
suffered the worst percentage drop, with their ad busi-
ness revenues for 2009 being only about half the corre-
sponding figure for 2008. But the Group’s computer and
sports magazines also sustained above-average de-
creases, while the TV program guides and women’s
media fared somewhat better.
A large part of the € 46.3 million decrease in revenues
was offset by the practice of strict cost management.
Another key factor was represented by the focused
efficiency enhancement measures, which led to higher
restructuring expenses in the amount of € 16.9 million
(PY: € 5.3 million). At € 55.0 million, segment EBITDA
was 38.1 % less than the prior-year figure (PY:
€ 88.8 million). The EBITDA margin came to 10.6 % (PY:
15.7 %).
Print International
For the most part, Axel Springer’s international print
titles had to contend with very difficult conditions in the
press distribution and advertising markets of the Euro-
pean countries in which they operate. The extreme
restraint exhibited by advertising customers, especially
in central and eastern Europe and in Spain, was re-
flected in the sharply lower advertising revenues. Axel
Springer’s print titles were likewise affected by these
declines, which were exacerbated by negative foreign
exchange effects, and responded with comprehensive
cost reduction measures.
68 Annual Report 2009 Axel Springer AG
Circulation Poland (Selection)
Average paid circulation, ZKDP
data
FAKT
NEWSWEEK1)
DZIENNIK GAZETA PRAWNA2)
2009 Change yoy
466,563
112,020
107,760
– 5.8 %
– 8.9 %
-
1) Source: ZKDP, January to November 2009 vs. January to November 2008.
2) Source: ZKDP, September to December 2009. Joint Venture with Infor Biznes.
The advertising market in Poland felt the full force of the
economic crisis in 2009; circulation numbers were also
lower, both in newsstand sales and subscriptions. The
Polish daily newspapers were particularly hard hit by
these trends. Our premium newspaper DZIENNIK sus-
tained substantial declines in the first half of 2009, before
launching the new DZIENNIK GAZETA PRAWNA, pub-
lished by the joint venture Infor Biznes, in September.
Thanks to the strong emphasis placed on commentary,
analysis, and expert opinions, this new title instantly
achieved an average circulation of 107.8 thousand copies
(September through December 2009), making it the third-
biggest opinion-leading newspaper in Poland (all data on
the Polish market according to ZKPD). The newsstand
newspaper FAKT kept its market share, measured by
paid circulation, above the level of 30 %, and so it re-
mained the biggest daily newspaper in Poland.
The Polish computer, automotive, and sports magazines
of Axel Springer also maintained their circulation market
shares on roughly the level of the prior year. Despite
deep circulation losses, KOMPUTER SWIAT (the Polish
edition of COMPUTER BILD) successfully defended its
position as Poland’s highest-reach computer magazine.
With an average paid circulation of 106.7 thousand
(– 3.8 %), AUTO SWIAT (the Polish counterpart of AUTO
BILD) continued to be the best-selling weekly automotive
magazine in Poland. Launched in March 2009, the li-
censed edition of AUTO BILD ALLRAD quickly brought
its average paid circulation to 23.3 thousand copies. Our
sports newspaper PRZEGLAD SPORTOWY stabilized its
circulation at 57.6 thousand and generated the best
performance of all Polish daily newspapers with regard to
advertising pages. The licensed edition of FORBES was
one of the few newspapers in Poland to increase its
circulation in 2009. With an average paid circulation of
45.3 thousand, FORBES is the biggest business maga-
zine in the Polish market.
Circulation Switzerland (Selection)
Average paid circulation, WEMF
data
BEOBACHTER
TELE
HANDELSZEITUNG
2009 Change yoy
308,527
144,214
43,940
– 0.5 %
– 0.3 %
– 2.8 %
The advertising market in Switzerland was likewise
dampened by the economic crisis, but the associated
declines were not as severe as in neighboring countries
of Europe. Amid this comparatively stable environment,
Axel Springer continued to chart a successful course.
Although advertising revenues for the full year 2009 were
not quite as high as the corresponding figure for 2008,
they recovered somewhat in the fourth quarter, at least
for the Group’s business media.
Switzerland’s biggest general-interest magazine, the bi-
weekly BEOBACHTER, reached a total of 933.0 thousand
readers, 2.5 % more than in the first half of 2009 (MACH-
Basic 2009-2). At 308.5 thousand copies, the circulation
according to WEMF was only 0.5 % less than the corre-
sponding prior-year figure. Numerous new readers were
attracted to this magazine as a result of its revised content
and optics, so that circulation losses were limited. Thanks
to the introduction of BEOBACHTER NATUR, moreover,
advertising revenues were stable, in contrast to the market
trend. Furthermore, the consumer advice magazine gen-
erated revenues from marketing finance and insurance
products in excess of the prior-year figure. Most notably,
more than one-quarter of the magazine’s subscribers
purchased the insurance product known as “Beobachter
Assistance.” Due to strong interest on the part of readers
and advertisers, the new specialty title BEOBACHTER
NATUR launched in 2009, which is printed by means of a
climate-neutral process, will now be published ten times a
year, instead of four times a year, starting in 2010. It is
also available by subscription.
Management Report of the Group and Management Report of Axel Springer AG 69
than 65.8 % in 2009. Thanks to copy price increases, the
regional newspapers managed to make up a large por-
tion of the decline in their circulation revenues.
Circulation France (Selection)
Average paid circulation,
company data
TELE MAGAZINE
VIE PRATIQUE GOURMAND
AUTO PLUS1)
1) EMAS: Joint Venture with Mondadori.
2009
Change yoy
350,685
198,805
296,059
– 2.7 %
7.7 %
– 5.5 %
In France, Axel Springer publishes ten magazines in the
segments of TV program guides, women’s magazines
and automotive magazines. Thanks to this specialization,
Axel Springer France continued on a course of growth in
the circulation market, in spite of the difficult market envi-
ronment. The biweekly food magazine VIE PRATIQUE
GOURMAND increased its readership by 21.0 % (July
2008 to June 2009) to surpass the level of 1 million. The
weekly TV program guide TELE MAGAZINE likewise
reached more than 1 million readers. Axel Springer also
expanded its portfolio of automotive magazines. The joint
venture Editions Mondadori Axel Springer (EMAS)
S.E.N.C., in which Axel Springer France holds a 50 %
interest, introduced the new title AUTO PLUS OCCASIONS
in January 2009. Specializing in content related to the
used car market, this new magazine complements the
editorial content of the market leader AUTO PLUS, the
French version of AUTO BILD. In October, the joint ven-
ture acquired the biweekly AUTO JOURNAL and the
monthly SPORT AUTO, thereby bolstering its position as
the leading publisher of automotive media in France.
With its TV program guides TELE, TV STAR, TV2, and
TV4, Axel Springer Schweiz is the undisputed market
leader in this segment as well. Although circulation num-
bers were slightly lower overall, the leading Swiss illus-
trated TV program guide TELE maintained its paid circu-
lation on the prior-year level. As for business titles, both
BILANZ and HANDELSZEITUNG reach by far the highest
number of decision-making executives in Switzerland,
according to MA-Leader 2009.
Circulation Hungary (Selection)
Average paid circulation,
MATESZ data
KISKEGYED
TVR-HÉT
GLAMOUR
2009
Change yoy
198,260
– 2.1 %
182,783
– 14.3 %
56,998
– 0.4 %
The print media market was especially weak in Hungary.
Due to the extreme purchasing restraint exhibited by
consumers, the advertising market was particularly
hard hit. As the biggest publishing house in Hungary,
Axel Springer was naturally affected by these trends.
The regional advertising business in particular was
significantly weaker, while the decreases were less
pronounced in the nationwide reach marketing and
circulation market.
Axel Springer continues to hold an outstanding market
position in the segment of women’s media. KISKEGYED,
the highest-reach traditional women’s magazine in Hun-
gary, held its circulation at 198.3 thousand copies, for a
decrease of only 2.1 % (all reach data according to
Szonda Ipsos/GFKHungária and circulation data accord-
ing to MATESZ). Aside from the positive effect of a new
graphic concept, the advertising campaign launched in
September 2009 generated a significant boost in news-
stand sales. The pocket-format style guide magazine
GLAMOUR also sustained below-average circulation
declines. Despite a 14.3 % decrease in its circulation,
TVR-HÉT is still one of Hungary’s two biggest TV pro-
gram guides. Axel Springer’s total circulation market
share in the segment of TV program guides was more
70 Annual Report 2009 Axel Springer AG
Circulation Spain (Selection)
Average paid circulation, OJD
data
COMPUTER HOY
HOBBY CONSOLAS
20091) Change yoy
75,888
– 17.1 %
67,065
– 14.4 %
PERSONAL COMPUTER
62,751
– 18.1 %
1) Source: OJD, April 2008 to March 2009 vs. April 2007 to March 2008.
In Spain, Axel Springer’s publications were hard hit by
the significantly worsened operating environment for
media companies. The Group’s magazines suffered
significant circulation losses and their circulation reve-
nues for the full year were not even close to the corre-
sponding prior-year figures, despite a moderate stabiliza-
tion in the second half of 2009. Nonetheless, Axel
Springer España successfully defended its leading mar-
ket position in the segments of computer magazines and
weekly automotive magazines. COMPUTER HOY, the
Spanish version of COMPUTER BILD, held on to its
position as the highest-circulation PC magazine in the
Spanish market. Furthermore, Axel Springer’s computer
and video game magazines still have the highest overall
circulation in Spain. As part of a portfolio adjustment,
publication of the gaming magazine Computer Hoy
Juegos and the computer magazine PC Today was
discontinued at the end of 2009. AUTO BILD ESPAÑA
solidified its leading market position in the segment of
weekly automotive magazines. AUTO BILD CLASSIC
and AUTO BILD SPORTSCARS, launched in the first
quarter of 2009, likewise achieved top positions in their
respective specialty markets.
Circulation Russia (Selection)
Average paid circulation,
company data
FORBES
COMPUTER BILD
NEWSWEEK
2009 Change yoy
78,678
73,191
33,399
– 9.2 %
– 1.7 %
– 4.7 %
In Russia, the circulation and reach of our magazines
showed a very positive development on the whole, despite
the extremely difficult market environment. Notwithstand-
ing minor circulation losses, COMPUTER BILD increased
its reach (TNS Media, NRS). FORBES, too, was able to
reach significantly more readers, despite its lower circula-
tion numbers, and is now the most-quoted business
magazine in Russia. In the period from May to October
2009, FORBES reached an average of 820 thousand
readers, about 15 % more than in the prior year. The new
supplement FORBES WOMAN, which appeared for the
first time in September 2009 and will be published four
times a year in the future, sold a very high volume of ads
from the outset. NEWSWEEK’s paid circulation was only
4.7 % less than the prior-year figure. Starting in the sec-
ond quarter of 2009, the lifestyle magazine OK! has been
published with 16 additional pages of content; its aver-
age paid circulation declined by 6 %, in the fourth quarter.
Circulation Czech Republic (Selection)
Average paid circulation, ABC
data
SVET MOTORU
TOP DIVKY
AUTO TIP
2009 Change yoy
32,806
– 4.3 %
31,507
– 13.7 %
22,686
– 3.3 %
The circulation and ad volumes of the magazines pub-
lished by Axel Springer in the Czech Republic de-
creased in line with the market trend. With its titles
SVET MOTORU and AUTO TIP, we were still the big-
gest publisher of automotive magazines. Launched in
November 2008, the specialty title for all-wheel drive
vehicles AUTO TIP 4x4 was successfully established in
the market in 2009. As part of a portfolio adjustment,
we gave up the licensed edition of Playboy.
Management Report of the Group and Management Report of Axel Springer AG 71
Key Figures Print International
in € millions
External revenues
2009
311.7
2008
409.8
Change
– 23.9 %
Share in cons. revenues
11.9 %
15.0 %
Circulation revenues
Advertising revenues
Other revenues
185.7
113.5
12.5
216.4
177.4
16.0
– 14.2 %
– 36.0 %
– 21.8 %
EBITDA
12.3
27.8
– 55.8 %
EBITDA margin
3.9 %
6.8 %
The Print International segment felt the brunt of the eco-
nomic consequences of the economic and financial crisis.
At € 311.7 million, total revenues were 23.9 % less than
the corresponding prior-year figure (PY: € 409.8 million),
due to market conditions and exchange rate factors.
Assuming constant exchange rates, the decline from the
previous year was 16.3 %. The drop in revenues was
most pronounced in Poland, our most important interna-
tional market. The revenues generated in the markets of
Hungary, Russia, and Spain were also lower, while those
generated in France and Switzerland were nearly as high
as the respective prior-year figures. At € 185.7 million,
the circulation revenues were 14.2 % less than the corre-
sponding figure for 2008; adjusted for exchange rate
effects, the decline was 6.3 %. At € 113.5 million, the
advertising revenues were 36.0 % less than the corre-
sponding prior-year figure (PY: € 177.4 million). This
substantial decline was a reflection of the extreme re-
straint exhibited by advertising customers, particularly in
the Group’s European markets besides Germany, due to
the extraordinarily tough economic conditions in those
markets. Assuming constant exchange rates, the decline
was only 29.3 %.
Despite the substantially lower revenues, the segment
EBITDA was positive, at € 12.3 million (PY: € 27.8 million).
Thus, most of the revenue decreases were offset by strict
cost management in the national subsidiaries. Cost sav-
ings were achieved in nearly all functional departments.
Another positive factor impacting EBITDA was the de-
consolidation of DZIENNIK. Furthermore, the expenses of
the Print International segment was favorably influenced
by foreign exchange effects. The EBITDA margin was
3.9 % (PY: 6.8 %).
Digital Media
Axel Springer’s digital media generated strong growth
amidst the financial and economic crisis, thereby offset-
ting a portion of the revenue declines experienced by the
Group’s print media. Substantial revenue growth was
registered especially by the Group’s marketplaces (in-
cluding idealo.de and immonet.de) and by its marketing
activities (including zanox). The Group’s content portals
also continued on a course of growth, increasing both
their reach and user numbers. All together, Axel
Springer’s online brands reached a gross total of
28.7 million users (unique visitors) in 2009, 43.4 % more
than the prior-year figure (unique visitors mainly accord-
ing to comScore and visits according to IVW, unless
otherwise indicated).
Unique Visitors/Visits of Editorial Online-
Offerings (Selection)
in thousands
Unique
Visitors
20091)
Change
yoy
Visits
20092)
Change
yoy
Bild.de
5,821.2
63.2 %
99,682.0
58.4 %
computerbild.de
3,407.8
> 100 %
15,338.9
71.7 %
welt.de
3,300.6
6.2 %
22,093.5
12.0 %
goFeminin.de
2,987.1
54.6 %
8,946.1
54.2 %
transfermarkt.de
1,424.8
41.9 %
16,562.1
52.5 %
abendblatt.de
949.1
29.0 %
5,242.8
39.4 %
onmeda.de
autobild.de
905.2
94.3 %
2,574.5
57.6 %
794.5
20.5 %
5,064.6
16.5 %
morgenpost.de
659.6
39.2 %
2,929.8
28.9 %
hamburg.de
503.9
– 3.1 %
2,396.8
10.4 %
finanzen.net
sportbild.de3)
383.5
> 100 %
7,328.2
81.3 %
301.2
20.3 %
3,254.6
30.5 %
bz-berlin.de
253.5
> 100 %
1,209.9
81.0 %
bildderfrau.de3)
162.1
> 100 %
477.8
25.9 %
1) Source: comScore.
2) Source: IVW.
3) Visits: Company data for Q1/2008, IVW-data as of Q2/2008.
72 Annual Report 2009 Axel Springer AG
Content portals
The online and mobile portals of the BILD family were
extraordinarily successful in 2009. Thanks to their signifi-
cantly upgraded and intensively linked information and
entertainment offerings, they reached significantly more
online users than in the prior year. Furthermore, BILD’s
paid premium applications rose to the top of the German
market from the time they were introduced. Having in-
creased its unique visitors by 63.2 % to 5.8 million, Bild.de
took the top rank among online portals of German print
media for the first time, while also expanding its position
as Germany’s biggest news and entertainment portal.
An important growth factor was the expansion of the
web-TV offering. In cooperation with the pay-TV broad-
caster Sky, Bild.de presented videos of all German soc-
cer league matches on its sports websites right after the
weekend. These videos were widely viewed, as was the
movie channel launched in the fourth quarter. Bild.de
attracted additional users also by way of the regional
portals set up in the first quarter, the total number of
which rose from three to twelve. The cooperation with
the local editorial departments of the print issues worked
perfectly and was further intensified during the course of
the year. The linkage with social networks like Facebook
and Twitter further supported the growth in the reach of
Bild.de. In only the first week after being introduced in
December 2009, the BILD iPhone app rose to the top
spot in the iTunes Store; at the start of 2010, the BILD
app and the WELT app together had generated more
than 100 thousand paid downloads.
The mobile portal BILDmobil demonstrated accelerating
growth during the course of the year. The number of
visits rose from 2.7 million visits in the first quarter of
2009 to 6.4 million in the fourth quarter. The average
number of visits for the full year 2009 was nearly three
times the corresponding figure for 2008. This success
can be credited in part to the expanded editorial content
(in cooperation with wallstreet:online and immonet.de,
among others) and also in part to the attractive billing
rate, which convinced more and more mobile phone
users to sign up; a net total of about 160 thousand cus-
tomers were acquired in 2009. The BILDmobil Speed-
stick, introduced in October, helped make this success
possible. With this pay-for-service UMTS stick, users can
surf the web on their mobile phones at an affordable cost.
The news portal WELT ONLINE extended its position as
the most-visited online site of all German premium
newspapers, having generated a 6.2 % increase in
unique visitors and a 12.0 % increase in visits. WELT
ONLINE continued to hold the third rank among news
portals in terms of unique visitors. The portal attracted
new users by introducing four highly frequented blogs
and by means of networking with Facebook, Twitter, and
XING, among other steps. Two new paid-content services,
the WELT LAGE newsletter and the WELT am SONNTAG
e-mag, were successfully launched in the fourth quarter.
The WELT app, which was introduced concurrently with
the BILD app in December 2009, likewise instantly rose to
a top-selling spot in the iTunes Store.
The content portals of our two regional newspapers
BERLINER MORGENPOST and HAMBURGER ABEND-
BLATT were placed under joint management in October
2009. As a result, their business models can be further
developed under one roof. On its website and mobile
portal, MORGENPOST ONLINE expanded its offering of
information and navigation features related to life in the
capital city of Berlin and boosted the number of unique
visitors by 39.2 %. Having been completely redesigned in
terms of technology, structure, and editorial content in
the first half of 2009, abendblatt.de also experienced
substantial 29.0 % growth in its unique visitors and is
now one of the ten most-visited news portals in Germany.
The news and city portal of B.Z., which was completely
overhauled already in January 2009, continuously in-
creased its user numbers during the course of the year,
nearly doubling them by the end of 2009. Having been
launched at the end of October 2009, the innovative B.Z.
app for the iPhone was very well received by users, as
demonstrated by the strong sales performance.
Nearly all the portals of Axel Springer’s German maga-
zines increased their user figures over the prior year.
The portal computerbild.de more than doubled (+ 104.6 %)
its unique visitors over the prior year and reinforced its
position as the second-biggest technology portal for
computers, telecommunications, and consumer elec-
Management Report of the Group and Management Report of Axel Springer AG 73
tronics. Key factors contributing to this growth were the
intensified cooperation with Bild.de in the area of online
games and downloads and the price comparisons of-
fered in cooperation with idealo.de.
The portal autobild.de extended its market leadership
position in the segment of German automotive portals
with editorial content. The number of unique visitors rose
by 20.5 % and the number of visits by 16.5 % to
5.1 million. This growth was supported by the portal’s
own premium channel on YouTube, which was intro-
duced in May 2009. The cooperation with the multi-
brand new car portal autohaus24.de and the car drivers’
community carmondo.de got off to a good start in the
third quarter. Through Axel Springer Auto Verlag, auto-
bild.de purchased a 19.9 % equity interest in the opera-
tor of both these sites, autohaus24 GmbH; this invest-
ment can be increased to 50 % by the year 2012. As a
result of this cooperation, autobild.de holds an interest in
this attractive distribution channel for new cars and can
reach more users with its editorial content.
Axel Springer’s online sports portals also generated
growth in 2009. Most notable was the success of the
soccer portal transfermarkt.de, which increased its visits
by 52.5 % to 16.6 million and expanded its market share.
The sports editorial team of Bild.de assumed responsibil-
ity for the content on sportbild.de in November 2009.
This portal was used by an average of 301.2 thousand
unique visitors per month, about one-fifth more than in
the prior year. sportbild.de also increased its visits,
thanks in large part to the expanded web-TV offering and
the paid service known as “National League Manager.”
Taken together, Axel Springer’s sports-related online
sites occupy the top position in the German market.
Again in 2009, gamigo.de was one of the fastest-
growing providers of online games (or more precisely,
massively multiplayer online games) in Europe. The port-
folio was expanded to more than ten games in seven
languages through the introduction of new language
versions and the acquisition of additional Europe-wide
game licenses; gamigo.de received more than 2.8 million
new registrations during the course of 2009.
Europe’s biggest online portal for women, auFeminin.com,
reached an average of 26.7 million unique visitors per
month last year (comScore), indicative of a 52.1 % in-
crease over 2008. The German subsidiary goFeminin.de
logged 54.2 % more visits in 2009 than in 2008, thanks
in part to the intensive linkage with the equally fast-
growing health portal onmeda.de. The content was
upgraded further with new features such as the cosmet-
ics product finder MyBeautyCase.de, which was intro-
duced in the second quarter. Since the beginning of
2010, moreover, goFeminin.de has also been responsi-
ble for operating and marketing bildderfrau.de; by this
means, we can take advantage of synergies in marketing,
technology, and editorial production. Cooperation was
also intensified on the technology side: Since the begin-
ning of July, for example, Axel Springer Media Impact
has been using Smart AdServer technology for market-
ing its online portfolio.
Despite the weak market environment, the premium
portals finanzen.net and wallstreet:online managed to
substantially increase their unique visitors and visits,
thanks in part to expanded cooperation with the print
titles EURO and EURO am SONNTAG. For the full year
2009, wallstreet:online increased its unique visitors by
73.0 %, while finanzen.net generated enough growth to
become the highest-reach finance platform in Germany.
Due to the improved reach, Axel Springer Financial Me-
dia further extended its position as the biggest marketer
of online advertising in the financial market.
SmarthouseMedia, one of the world’s leading providers
of Web-based financial applications for online brokers,
financial service providers, and mutual fund companies,
besides being the operator of finanzen.net, acquired
attractive customers again in 2009.
Axel Springer content portals also generated strong
growth in the other markets of Europe in 2009; nearly all
of them increased their unique visitors and visits signifi-
cantly over the prior-year comparison values.
In Poland, the online portfolio was expanded to 30 web-
sites through the launch of new offerings. Especially
important was the launch of the Polish portal of the
online jobs exchange StepStone, which by the end of
74 Annual Report 2009 Axel Springer AG
2009 was already reaching 676 thousand users (unique
visitors for Poland according to Gemius Traffic). The
automotive portals roadlook.pl and autofun.pl that had
been acquired in the summer and the newly launched
website autoporadnik.pl built up a large base of users
within a very short time. In the fourth quarter of 2009,
the average monthly number of unique visitors to all our
automotive portals was 1.1 million. The centerpiece of
our campaign to expand the Group’s Polish women’s
and lifestyle portals was the introduction of oFeminin.pl
in December 2009. Together with the already well estab-
lished portals koktajl24 and w-spodnicy.pl, the Polish
edition of auFeminin reached more 1.4 million unique
visitors per month in December. In the men’s segment,
two new sports portals went online.
produced by an integrated print/online editorial team. It
reached 1.5 million unique visitors (AT Internet) already at
the end of 2009. In Spain, the new portal autobild.es
added to our extensive line-up of automotive sites. In the
Czech Republic, auto.cz successfully asserted its posi-
tion as that country’s leading automotive portal. In China,
the online portal of the Chinese licensed edition of AUTO
BILD already reached about 1.0 million unique visitors in
2009 (own data, based on Google Analytics).
Marketplaces
Axel Springer’s online classified ad exchanges and mar-
ketplaces generated strong growth in both revenues and
results, and therefore made an important contribution to
the success of the Digital Media segment in 2009.
Also in Switzerland, Axel Springer’s digital media per-
formed predominantly well. Following a complete over-
haul of content and graphics, the website beobachter.ch
more than doubled its user numbers, according to WEMF.
The redesigned online site of the investor magazine
STOCKS reached an average of about 75.0 thousand
unique visitors per month in 2009. The electronic pro-
gram guide tele.ch launched in the second quarter also
met with a positive reception. Following the addition of a
new gaming platform playbay.ch, the portfolio of the
Amiado Group, an entity of the Group operating in the
digital markets, reached an annual average of 33.4 % of
persons aged 16 to 34, according to internal surveys.
Acquired by Axel Springer in 2009, StepStone ASA
continues to be one of the leading operators of online
job exchanges, with around 35 jobs portals throughout
Europe. It is also a worldwide provider of talent man-
agement software. With 1.1 million unique visitors (in-
dicative of a 11.3 % increase over the prior year), the
overhauled German portal stepstone.de was the highest-
reach website of all German job exchanges for the first
time. At the end of 2009, almost 30 thousand job offers
were posted in Germany via this platform; furthermore,
more than 1.0 million (PY: 0.7 million) registered users
signed up to have the StepStone JobAgent automatically
send them the latest job offers by e-mail.
In Hungary, Axel Springer’s six online portals for female
Internet users increased their unique visitors by nearly
50 %, according to webaudit. As the current No. 2 in the
market, Axel Springer is close on the heels of the market
leader for online women’s media.
The Group’s content portals were successful in other
international markets as well. For example, one of the
paid iPhone apps of VIE PRATIQUE GOURMAND held
the status of best newcomer, at times, among the ten-
leading paid applications in France. In the Russian mar-
ket, we launched the website forbes.ru, which is
In the segment of classified ad markets, immonet.de
held its property listings steady at 950 thousand proper-
ties amid a tough market environment, and so defended
its second-place ranking among German real estate
sites. The mobile portal launched in May was instrumen-
tal in that success, as was the highly regarded market-
ing campaign of our online real estate specialist (see
page 60). In addition, Axel Springer’s leading position in
cross-media real estate marketing received an additional
boost by means of the cooperation with BERLINER
MORGENPOST and HAMBURGER ABENDBLATT,
which was initiated in 2009. Since August of 2009, real
estate offerings have been centrally marketed and
closely interlinked under an integrated brand concept.
Management Report of the Group and Management Report of Axel Springer AG 75
The portal idealo.de, one of Germany’s leading search
engines for price and product comparisons, increased
the number of brokered retailer queries by 20.7 % over
the prior year. This growth was aided in particular by the
introduction of new product categories. In the European
markets outside of Germany, Axel Springer further ex-
panded its activities by launching a travel price compari-
son service in Portugal and Poland, among other steps.
Since August 2009, users can also find the lowest natu-
ral gas rates available to them on idealo.de. In addition,
idealo.de expanded the search options to include prod-
ucts that are not contained in idealo’s extensive open
database, which led to a significant further expansion in
the available product range.
TV/radio activities
Schwartzkopff TV expanded its business especially in
the area of docutainment, confirming its market position
as one of the leading producers of entertainment and
talk-show formats. The exclusive partnership with the
Sparks Network, an international federation of 19 lead-
ing, independent TV production companies, improves
the company’s access to internationally successful
formats and licenses for the German market. The local
TV and radio stations in which Axel Springer holds in-
vestments had to contend with a difficult market envi-
ronment; due in particular to the shrinking advertising
market, their business performance was below the level
of the prior year.
Marketing
zanox charted a successful course in 2009. All together,
more than 2,000 advertising customers utilized a net-
work of more than 1 million partner websites (affiliates) in
2009. As a result of the attractive, performance-based
model, zanox’s business model was unaffected by the
worldwide slump in advertising markets; zanox’s reve-
nues were substantially higher than the prior-year figure.
Advertisers made intensive use of the zanox Web Ser-
vices introduced in the first quarter, as well as the appli-
cations and tools developed for that purpose, to access
the partner network even more efficiently. The exclusive
service program for successful publishers supported the
monetarization of the network. In the fourth quarter,
zanox expanded its offerings by adding the new program,
“Partners Recruit Partners.”
Digital Window, in which Axel Springer acquired a ma-
jority interest in 2009, further extended its market posi-
tion as the second-biggest affiliate network in Great
Britain by acquiring prestigious customers in the fourth
quarter. The company also enhanced communications
in the partner network by means of technological inno-
vations and the newly launched publisher-advertiser
interface “Darwin.”
Key Figures Digital Media
in € millions
External revenues
2009
470.4
2008
378.2
Change
24.4 %
Share in cons. revenues
18.0 %
13.9 %
Advertising revenues
Other revenues
336.7
133.7
271.2
107.0
24.1 %
25.0 %
EBITDA
43.2
20.9
> 100 %
EBITDA margin
9.2 %
5.5 %
Partially as a result of the first-time consolidation of the
companies acquired in 2009, the total revenues of the
Digital Media segment amounted to € 470.4 million,
indicative of a 24.4 % increase over the prior year (PY:
€ 378.2 million). Adjusted for consolidation effects such
as the acquisitions of StepStone and Digital Window in
2009, and gamigo in 2008, total revenues were 9.1 %
higher than the corresponding prior-year figure. The
online properties zanox, idealo, and auFeminin were
major contributors to the organic growth generated in
2009. The pro-forma revenues of the Digital Media seg-
ment came to € 569.0 million (PY: € 543.5 million),
bringing their share of total pro-forma revenues to
21.0 % (PY: 18.8 %).
76 Annual Report 2009 Axel Springer AG
At € 336.7 million, the advertising revenues of the
Digital Media segment were 24.1 % higher than the
corresponding prior-year figure of € 271.2 million. This
increase was largely influenced by gains at zanox, im-
monet, and idealo, in addition to consolidation effects.
At € 133.7 million, the other revenues were 25.0 %
higher than the corresponding prior-year figure (PY:
€ 107.0 million), largely due to consolidation effects.
At € 43.2 million, segment EBITDA was more than twice
as high as the prior-year figure (PY: € 20.9 million). Much
of this increase resulted from earnings improvements at
immonet, idealo, and Bild.de. Furthermore, the compari-
son figure from 2008 included charges related to foreign
exchange effects and start-up costs for new businesses
at Dogan TV.
Services/Holding
The Services/Holding segment comprises the three
Group-owned newspaper printing plants, the income or
expenses from the investment in the rotogravure printing
company PRINOVIS, the internal departments of Distri-
bution and Logistics, and the service and holding com-
pany functions.
Due to the economic crisis, our printing plants operated
with lower paper throughputs and generated lower reve-
nues from job printing. Most of this decline was offset by
cost savings. PRINOVIS was adversely affected by sur-
plus capacities and strong price pressures in the roto-
gravure printing market.
Key Figures Services/Holding
in € millions
External revenues
2009
98.1
2008
99.0
Change
– 0.9 %
Share in cons. revenues
3.8 %
3.6 %
EBITDA1)
– 20.5
– 0.2
-
1) This figure contains investment income of € 4.1 millions (PY: € 2.7 millions).
At € 98.1 million, the external revenues of the Services/
Holding segment were close to the prior-year level (PY:
€ 99.0 million). Lower revenues from offset printing were
offset by higher revenue contributions from the service
divisions.
At € – 20.5 million (PY: € – 0.2 million), EBITDA was
negative, as expected, a continuation of a trend that has
lasted for many years. The change from the prior year
can be attributed to the non-recurrence of positive ef-
fects related to transactions and provisions for litigation
expenses. Other factors affecting the segment EBITDA
in 2009 were the non-recurring expenses associated
with the bonus share and employee share ownership
program, higher contributions to the pension insurance
fund, and tax effects from prior years. A positive effect
on segment EBITDA compared to the prior year resulted
from by the improved investment expenses of PRINOVIS
even though affected by the economical crises. The
prior-year figure, had included restructuring expenses for
the closure of the printing plant in Darmstadt. As in the
prior year, the segment EBITDA for 2009 also included
income from the Kirch insolvency (2009: € 7.6 million,
2008: € 6.2 million).
Management Report of the Group and Management Report of Axel Springer AG 77
Financial situation and balance sheet
Financial situation
Financial management
As a rule, Axel Springer AG provides all financing for the
Axel Springer Group. This arrangement ensures that the
Group companies have sufficient liquidity at all times. The
overriding goal of financial management is to provide
cost-effective liquidity by means of structurally appropri-
ate financing. Liquid assets are invested with the aim of
earning an appropriate return. The Axel Springer Group
does not engage in off-balance sheet financing measures.
Net liquidity
in € millions
Cash and cash equivalents
Financial liabilities
Net liquidity
2009
197.3
390.3
2008
154.5
524.0
– 193.0
– 369.5
As of December 31, 2009, Axel Springer had a net debt
of € 193.0 million (PY: € 369.5 million). The cash and
cash equivalents increased by € 42.8 million, while the
financial liabilities decreased by € 133.7 million, mainly
due to the cash flows generated in operating activities
and the receipt of the purchase prices from the sale of
the regional newspaper investments. At the balance
sheet date, Axel Springer had access to short-term and
long-term credit facilities in the amount of € 1,220.0 million
(PY: € 1,095.0 million), which were not utilized. The
credit facilities can be used both for general business
purposes and for the financing of acquisitions.
Cash flow development and investments
Consolidated Cash Flow Statement (Condensed)
in € millions
Cash flow from continuing operations
Cash flow from investing activities
2009
270.0
55.0
2008
265.1
300.6
Cash flow from financing activities
– 283.9
– 612.2
Change in cash and cash equivalents
41.2
Cash and cash equivalents at December 31
197.3
– 46.4
154.5
Despite the fact that EBITDA for 2009 was € 152.5 million
lower than the corresponding prior-year figure, the cash
flow from operating activities was little changed from the
previous year, at € 270.0 million. This circumstance
resulted mainly from a decrease (PY: increase) in working
capital. Also, the decrease in EBITDA was influenced by
non-cash effects, especially the fact that higher amounts
were appropriated to provisions than in the prior year.
The cash flow from investing activities amounted to
€ 55.0 million (PY: € 300.6 million). This amount was
mainly composed of the purchase prices collected in
connection with the sale of the regional newspaper in-
vestments. The total purchase price paid for the remain-
ing shares in StepStone ASA, the investment in Digital
Window Ltd., and the investment in Infor Biznes
amounted to € 113.9 million. This amount was reflected
in the cash flow from investing activities after deduction
of the acquired cash and cash equivalents in the amount
of € 38.8 million. In the prior year, the high cash inflow
amount resulted mainly from the receipt of the purchase
price for the shares sold in ProSiebenSat.1 Media AG,
and was partially offset by the payments made for the
acquisition of minority interests in BILD digital GmbH &
Co. KG, for the exercise of the put options granted in
connection with the acquisition of equity shares in
auFeminin.com S.A., and for the acquisition of 33.3 %
of the equity shares in StepStone ASA.
The cash flow from financing activities was negative, at
€ – 283.9 million in 2009 (PY: € – 612.2 million). It was
influenced primarily by the repayment of financial liabili-
ties. The substantially higher cash outflows in the prior
year resulted from repayments of financial liabilities after
receipt of the purchase price for the shares sold in
ProSiebenSat.1 Media AG, and from the purchase of
treasury shares.
The net balance of cash flows from operating, investing
and financing activities amounted to € 41.2 million (PY:
€ – 46.4 million). As of December 31, 2009, the cash
and cash equivalents (cash, term deposits, and securi-
ties with short-term maturities) amounted to
€ 197.3 million (PY: € 154.5 million).
78 Annual Report 2009 Axel Springer AG
Balance Sheet
Consolidated Balance Sheet
(Condensed)
in € millions
Non-current assets
Current assets
Assets
Equity
Non-current liabilities
Current liabilities
12/31/2009 12/31/20081)
1,874.6
1,715.7
1,059.7
1,093.3
2,934.3
2,809.1
1,196.8
1,067.7
966.1
771.4
1,041.9
699.5
Equity and liabilities
2,934.3
2,809.1
1) Adjusted due to the change of the accounting policy for pension obligations.
At € 2,934.3 million, the consolidated balance sheet
total at December 31, 2009 was € 125.2 million or
4.5 % higher than the corresponding figure at the end of
2008 (PY: € 2,809.1 million). This development was
influenced in particular by the sale of the regional news-
paper investments and the first-time consolidation of
StepStone ASA and Digital Window Ltd.
Of the purchase prices for the regional newspaper in-
vestments in the total amount of € 324.0 million, an
amount of € 150 million was recognized as non-current
receivables because it will be successively due and pay-
able only starting in 2011. Investment carrying amounts
and financial receivables in the amount of € 109.2 million
were disposed.
Due to the first-time consolidation of subsidiaries, total
assets increased by € 67.4 million and total liabilities
increased by € 99.4 million.
At € 55.9 million, the current income tax receivables
were € 18.4 million higher than the prior-year figure,
mainly as a result of the higher advance tax payments
made for 2009 and the tax refund claims for prior years
arising from completed tax audits. At € 70.4 million, the
current other assets were € 8.4 million higher than the
prior-year figure, mainly as a result of the higher values
for H&F options due to the higher share price of Axel
Springer AG in 2009.
At € 1,196.8 million, the equity was € 129.1 million
(12.1 %) higher than the corresponding figure at the end
of 2008. This increase resulted mainly from the consoli-
dated net income generated; countervailing effects were
the dividend payment for fiscal year 2008 in the amount
of € 130.6 million and the recognition of the balance
from with the increase in the Group’s shareholding in
StepStone ASA from 52.8 % to 100 % (€ 36.2 million).
The equity ratio rose to 40.8 % (PY: 38.0 %).
At € 966.1 million, the non-current provisions and liabili-
ties were lower than the prior-year figure by € 75.8 million
(7.3 %). The decrease resulted in particular from the
reduction of financial liabilities (€ – 128.6 million) and from
the reversal of deferred taxes in connection with the sale
of regional newspaper investments (€ – 8.3 million). On
the other hand, the pension provisions were higher
(€ 14.4 million), due in particular to the lowering of the
discount factor from 5.8 % to 5.3 % for pension obliga-
tions in Germany. The € 25.3 million increase in other
non-current provisions resulted mainly from structural
measures. In addition, deferred tax liabilities were recog-
nized in connection with the purchase price allocation for
the acquisition of StepStone ASA and Digital Window Ltd.
(€ 28.1 million).
At € 771.4 million, the current provisions and liabilities
were € 71.9 million million (10.3 %) higher than the cor-
responding prior-year figure. This increase resulted
mainly from the first-time consolidation of StepStone
ASA and Digital Window Ltd. It was also affected by
increases in the provisions for structural measures, trade
payables, financial liabilities under interest rate derivatives,
and current income tax liabilities.
Management Report of the Group and Management Report of Axel Springer AG 79
Economic position of Axel Springer AG
Key Figures for Axel Springer AG
in € millions
Revenues
Net income
Transfer to other retained earnings1)
Total dividends
Dividend per share (in €)1)
2009
2008
2007
2006
2005
1,588.3
1,673.3
1,669.1
1,710.1
1,697.2
323.1
165.4
131.1
4.40
196.4
103.6
130.6
4.40
147.8
25.3
122.4
4.00
245.9
138.5
107.3
3.50
143.2
91.0
52.1
1.70
1) The amount of the dividend for 2009 and the appropriation to other retained earnings (after deduction of the advance appropriation of € 151.4 million) are provisional, subject to
the approval of the annual shareholders’ meeting.
Overview
Financial performance
Axel Springer AG, based in Berlin, is the parent company
of the Axel Springer Group. The Management Board of
Axel Springer AG is also the managing body of the Group.
The Group’s major print publications such as the BILD
Group, the WELT Group, HAMBURGER ABENDBLATT,
TV DIGITAL, and HÖRZU, as well as other newspaper
and magazine titles, are produced and distributed by
Axel Springer AG. The newspapers are printed in Axel
Springer’s own printing plants at the locations Ahrens-
burg, Berlin, and Essen, and in third-party printing plants.
In addition, Axel Springer AG maintains numerous sup-
plier and service relationships with subsidiaries and as-
sociates. Purchased services mainly include printing
services, administrative services, property management,
direct marketing, editorial services, circulation, and insur-
ance services. Services rendered include the supply of
publishing products, paper deliveries, as well as general
administrative and IT services.
As a rule, Axel Springer AG provides all financing for the
Group companies. A number of German Group compa-
nies have entered into profit transfer agreements with
Axel Springer AG.
The following disclosures pertain to the separate finan-
cial statements of Axel Springer AG, which were pre-
pared in accordance with the applicable regulations of
the German Commercial Code and the German Stock
Corporations Act.
Income Statement of Axel Springer AG (Condensed)
in € millions
Revenues
Other operating income
2009
2008
1,588.3
1,673.3
417.0
178.4
Purchased goods and services
– 458.1
– 484.8
Gross profit
Personnel expenses
Amortization, depreciation and
impairments of intangible assets and
property, plant and equipment
1,547.3
1,366.9
– 482.9
– 452.4
– 40.0
– 45.3
Other operating expenses
– 530.9
– 542.6
Income from non-current financial assets
Expenses from transfer of losses
Impairments of non-current financial assets
and current securities
Net interest income
Profit from ordinary activities
Taxes
Net income
Transfer to retained earnings
Distributable profit
45.2
– 66.1
– 38.3
– 33.6
400.8
– 77.7
323.1
– 178.0
145.1
76.9
– 49.7
– 50.4
– 18.5
284.9
– 88.6
196.4
– 51.2
145.1
In fiscal year 2009, Axel Springer AG generated revenues
of € 1,588.3 million, 5.1 % less than the corresponding
prior-year figure, due in particular to the lower advertising
revenues. However, the gross operating profit of
€ 1,547.3 million was € 180.4 million higher than the
corresponding prior-year figure. This increase was
caused mainly by the realized gain of € 251.9 million on
80 Annual Report 2009 Axel Springer AG
the sale of the regional newspaper investments in 2009,
which was also reflected in the substantially higher fiscal
year net income of € 323.1 million (PY: € 196.4 million).
Balance sheet
Balance Sheet of Axel Springer AG (Condensed)
in € millions
Intangible assets
Property, plant and equipment
12/31/2009 12/31/2008
34.4
218.7
35.6
238.4
Non-current financial assets
1,470.0
1,351.3
Fixed assets
Inventories
Receivables and other assets and prepaid
expenses
Treasury shares
Cash and cash equivalents
Current assets
Total assets
Equity
Provisions
1,723.0
1,625.3
26.0
34.4
592.5
196.0
83.2
897.7
524.3
169.5
68.7
796.8
2,620.7
2,422.0
1,105.6
483.8
913.1
451.6
Liabilities and deferred income
1,031.3
1,057.3
Total equity and liabilities
2,620.7
2,422.0
At € 2,620.7 million, the balance sheet total was 8.2 %
(€ 198.7 million) higher than the corresponding prior-year
figure. The proportion of total assets represented by
non-current assets was nearly unchanged at 65.7 %.
Non-current assets were backed by equity at the rate of
64.2 % (PY: 56.2 %). Non-current financial assets repre-
sented 85.3 % of total non-current assets (PY: 83.1 %).
At € 1,470.0 million, the non-current financial assets
were € 118.7 million higher than the corresponding
prior-year figure, mainly due to the acquisition of equity
shares in StepStone ASA. At € 897.7 million, the current
assets were € 100.9 million higher than the correspond-
ing prior-year figure. This increase was influenced by the
deferral of a portion of the purchase price from the sale
of the regional newspaper investments and by the write-
up of treasury shares to the original acquisition cost or
stock market value at the balance sheet date.
At € 1,105.6 million, the equity was € 192.5 million
higher than the corresponding prior-year figure. The
equity ratio rose from 37.7 % to 42.2 % as of Decem-
ber 31, 2009. The total amount appropriated to provi-
sions was € 32.2 million higher than the prior-year figure.
This increase was caused in particular by the higher
amount of pension obligations resulting from the reduced
discount factor and the higher provision for structural
measures. At € 1,031.3 million, the liabilities and de-
ferred income were € 26.0 million lower than the corre-
sponding prior-year figure. Whereas the liabilities to
banks were € 128.5 million lower than the prior-year
figure, the liabilities to affiliated companies increased by
€ 88.6 million, mainly in connection with the centralized
cash management program.
Financial situation
The net debt (liabilities due to banks minus cash and
cash equivalents) was reduced by € 143.0 million to
€ 235.0 million in 2009. As of December 31, 2009, the
company had access to unutilized short-term and long-
term credit facilities in the amount of € 1,220.0 million
(PY: € 1,095.0 million). The credit facilities can be used
both for general business purposes and for the financing
of acquisitions.
Management Report of the Group and Management Report of Axel Springer AG 81
Profit utilization
proposal
Risk and
Opportunities Report
The annual financial statements of Axel Springer AG,
which were prepared in accordance with German com-
mercial law and German laws applicable to stock corpo-
rations, show a fiscal year distributable profit of
€ 145.1 million (PY: € 145.1 million).
With the consent of the Supervisory Board, the Man-
agement Board will propose distributing a dividend of
€ 4.40 (PY: € 4.40) per qualifying share at the annual
shareholders’ meeting to be held on April 23, 2010.
This dividend corresponds to a profit distribution of
€ 131.1 million from the distributable profit. The remain-
ing amount of € 14.0 million will be allocated to other
retained earnings. The treasury shares held by the com-
pany do not qualify for dividends. The number of shares
qualifying for dividends can change in the time remaining
until the annual shareholders’ meeting. In this case, an
appropriately adjusted profit utilization proposal will be
made to the annual shareholders’ meeting, while retain-
ing the proposal to distribute a dividend of € 4.40 per
qualifying share.
Risk assessment
The Axel Springer Group’s fundamental risk policy dic-
tates that risks may only be incurred if they enable the
company to take advantage of additional income oppor-
tunities and thereby increase its company value. Appro-
priate measures are taken to reduce every risk to an
acceptable level or transfer it to third parties if economi-
cally feasible. Axel Springer’s risk policy principles are set
forth in a corporate directive that applies to all compa-
nies of the Group.
Risks are monitored and managed with the aid of various
interconnected systems:
(cid:132) Production and unit sales quantities, income, and
expenses are monitored as part of the overall man-
agement process. In this connection, general market
and income risks are identified and managed as part
of the budget planning and end-of-year forecast
process and in the reporting system.
(cid:132) Risks related to capital expenditures and acquisitions
are identified and assessed in advance as part of in-
vestment planning; thereafter, they are monitored as
part of the reporting system.
(cid:132) In addition, Axel Springer has implemented a risk
management program within the meaning of Section
91 (2) of the German Stock Corporation Act (AktG)
that identifies all other risks.
The overall responsibility for risk management lies with
the Management Board, whereas the respective divi-
sions or Group companies are responsible for the oper-
ating processes of early detection, assessment, man-
agement, and documentation of risks, as well as the
adoption and execution of suitable countermeasures and
the related communication activities. Furthermore, a
central risk manager coordinates all risk management
activities, aggregates the risks at the Group level, reviews
the plausibility and completeness of the reported risks,
and assumes responsibility for continuously improving
82 Annual Report 2009 Axel Springer AG
the risk management system. In addition, the Internal
Audit Department and the independent auditor (in the
context of the annual audit) review the completeness and
adequacy of the risk management system as indepen-
dent control instances.
A comprehensive survey of risks is conducted once a
year, at which time the risk inventory is updated. In addi-
tion, risks to the company as a going concern as well as
risks identified as significant or worthy of monitoring, and
the corresponding countermeasures, are reviewed dur-
ing the course of the year in connection with ad hoc risk
surveys, and their assessment is adjusted to the current
risk situation. Any potential risks to the company as a
going concern are reviewed by Axel Springer AG and the
individual subsidiaries applying the criterion of net loss
and its effect on the Group’s financial position and liquid-
ity situation. Risks are classified as significant, worthy of
monitoring, or as other risks based on the net expected
loss, with due consideration given to the effect of risk-
mitigating countermeasures on the potential loss and the
risk-related expected value. The following risks could
pose a threat to the company as a going concern or
significantly influence the company’s financial position,
financial performance, and liquidity situation:
Market and competition risks
In view of the limited functioning of the international
financial markets, the expiration of economic stimulus
programs, and the need to consolidate public-sector
budgets (see page 87), a renewed economic downturn
cannot be ruled out. Such a development would lead to
a significant deterioration of the revenue situation, espe-
cially in the form of lower advertising revenues. Despite
the “Growth Acceleration Act” announced in December
of 2009, consumer spending could take a significantly
negative turn, not least of all as a result of the projected
rise in unemployment. Consumer spending is the deter-
mining factor for the performance of the press distribu-
tion market and the classified ads business, and is there-
fore highly significant for Axel Springer’s business suc-
cess. Furthermore, the general market situation is still
characterized by intense competition pressure. The
possible entry of new competitive titles and formats into
the market, especially also in the form of free newspa-
pers and magazines, exposes the Axel Springer Group
to the risk of lost revenues and market shares in the
circulation and advertising business. Changing con-
sumption and reading habits, especially due to demo-
graphic shifts, exacerbate this risk even further. In addi-
tion, the increased competition of traditional print media
with other types of media pose uncertainties. For exam-
ple, the continuing expansion of the Internet could lead
to further shifts in customer preferences and to additional
structural changes in the advertising market. Such a
development could lead to further reductions in newspa-
per and magazine revenues.
In this context, the high proportion of total Group-wide
revenues contributed by BILD and the BILD family also
poses a particular risk. The paid circulation of BILD and
BILD am SONNTAG has been declining overall in re-
cent years. Furthermore, a significant portion of Axel
Springer AG’s high-revenue magazine titles are sup-
ported by the strong recognition and brand familiarity of
the BILD family. It cannot be ruled out that the success
of the BILD titles could permanently suffer due to long-
term negative impact from external factors, which would
also impact Axel Springer’s financial position, liquidity,
and financial performance.
These general market risks are monitored and managed
above all by the operational management of the com-
pany. In order to counter these market risks, in 2009
Axel Springer AG continued to pursue its strategy of
market leadership in the core business of German-
language print media as well as its strategy of interna-
tionalization and digitization, and will continue to pursue
these strategies consistently in the future. Therefore, it is
extremely important for Axel Springer to expand its exist-
ing activities in Germany in a targeted manner and adapt
its business to suit changing customer demands by
means of product innovations, among other measures.
In addition, Axel Springer offers various price incentives
and other product-related measures including, for exam-
ple, sales-promoting give-aways and special inserts
offered at an extra cost, such as DVDs, CD-ROMs, and
audiobooks, for example.
Management Report of the Group and Management Report of Axel Springer AG 83
To further reduce its market risks, Axel Springer contin-
ues to consistently pursue its strategies of internationali-
zation and digitization. Axel Springer responds to the
changes affecting the media business and promotes the
cross-media networking and integration of its brands by
means of acquisitions, business start-ups, and the ex-
pansion of existing digital media whenever possible.
(See also the discussion of the segments Newspapers
National, Magazines National, Print International, and
Digital Media on pages 63, 65, 67, and 71).
Political and legal risks
The business of Axel Springer AG continues to be ex-
posed to the competition-distorting effects of state-
owned media operations and the regulatory pressure of
lawmakers on all relevant levels of government. The
three-stage test introduced as a regulatory requirement
in 2009 has proven to be largely ineffective because the
broadcasting councils do not give adequate considera-
tion to the consequential effects of their expansion
course on the online market. That represents an addi-
tional hindrance to the monetarization of mobile Internet
services by private-sector providers. State-owned TV
stations financed by government fees continue to offer
electronic press on their websites without restriction, and
it has been announced that news videos will be made
available to users free of charge on the strategically
important Apple AppStore platform.
As the new legislative periods begin in Germany and on
the European level, a push for new regulatory measures
can be expected. There are already indications of new
initiatives to impose advertising conditions and restric-
tions. Furthermore, the possible regulation of behavior-
directed advertising from the aspect of data protection
law is being discussed.
Reputation risks
In view of its growing international presence, the Axel
Springer Group has adopted a catalog of social stan-
dards, known as the International Social Policy, as a
binding guideline for social integrity, applicable to all of
the Group’s activities throughout the world. Inadequate
compliance with the International Social Policy, whether
in connection with the procurement of advertisements,
product supplements, merchandising, or the sale of title
licenses, could potentially cause great harm to the com-
pany’s reputation.
The Axel Springer Group has instituted a sustainability
management program that meets international standards.
The delayed identification of critical developments rela-
tive to possible ecological and social conflicts in the
procurement of resources in all phases of the wood, pulp,
paper, and recycling chain could harm the Group’s repu-
tation. To reduce this risk, Axel Springer works closely
with experts in the wood, pulp, and paper industry, and
with numerous environmental protection organizations.
The Group also conducts monitoring measures across
the value chain, as well as eco-audits, in order to limit the
associated risks. Furthermore, the Group communicates
these measures through internal and external reporting
characterized by openness and transparency.
IT risks
IT risks arise from the possible failure of IT systems, data
centers, editing systems, databases, and the like. Such
IT risks could lead to data losses and, in the worst case,
business interruptions. Extensive IT security measures
(such as back-up systems, firewalls, emergency data
centers) are taken to avoid or mitigate such risks.
Strategic and other risks
Strategic risks arise primarily from the possibility that the
Group would invest in concepts and companies that are
not sustainably successful, which could cause financial
losses as well as intangible losses. Investment risks are
especially relevant here. If the revenue and net income
performance of the companies in which the Group holds
investments are worse than planned due to a renewed
worsening of the financial markets and economic crisis, it
could become necessary to recognize impairment losses
after an impairment test. In the worst case, the complete
write-off of the assets of all companies in which Axel
Springer holds investments could pose a risk to the
survival of the Axel Springer Group as a going concern.
Such risks are minimized in particular through the active
management and constant monitoring of equity invest-
ments. These measures also minimize the risk of possi-
ble losses on loans to such companies.
84 Annual Report 2009 Axel Springer AG
Based on a tax audit in September 2009, the Turkish tax
authorities imposed various subsequent tax claims and
incidental costs in the total amount of TRY 4.8 billion
(approximately € 2.2 billion) against our investment
Dogan TV Holding and three subsidiaries of Dogan TV
Holding. The management of Dogan TV Holding consid-
ers the subsequent tax claims to be unjustified and the
affected companies filed an action with the tax court.
Depending on the further developments and any possi-
ble adjustments to the business plan by the manage-
ment of Dogan TV Holding, the risk of an impairment loss
cannot be ruled out. In assessing the value of our in-
vestment in this associate, due consideration is given to
the existing contractual agreements aimed at protecting
the value of our investment.
Also, the loss of major customers could have an adverse
impact on the Group’s business success and activities.
Measures are taken to reinforce customer loyalty, among
other things, as a means of avoiding this risk. Additionally,
breaches of confidentiality agreements or insider trading
regulations, as well as the publication of incorrect infor-
mation, could entail financial and legal consequences
and/or damage the reputation of the Group or its proper-
ties. Inspection mechanisms and coordination rules have
been instituted, among other measures, as a means of
minimizing such risks. Also, violations of data protection
laws and regulations could entail negative economic and
legal consequences and/or harm the Group’s reputation.
To avert any such violations, Axel Springer has expanded
its data protection organization and initiated comprehen-
sive training measures; we plan to intensify such activi-
ties in the future. Risks in the distribution sector, includ-
ing the risk of liquidity problems affecting distribution
partners, are countered by clearly defined payment
terms and conditions.
To limit its exposure to interest rate risk, the Group has
established principles that serve to regulate and ensure
compliance with loss limits on its capital investments. In
addition, these risks are hedged by employing various
kinds of interest rate derivatives. Significant financing
risks as a result of the global financial crisis are not evi-
dent for the Axel Springer Group, because the credit line
totaling € 1.5 billion granted for liquidity protection pur-
poses has been approved by the participating banks
until 2012/2013 and does not include unilateral termina-
tion rights. Currently, the Axel Springer Group is not
exposed to any price change or default risks, nor risks
arising from cash flow fluctuations.
Overall risk assessment
With the exception of the rather theoretical risk of a
complete write-off of all assets related to companies in
which the Group holds investments, no further risks that
could endanger the company’s survival as a going con-
cern can be discerned. This risk has a very low probabil-
ity of occurrence. Currently, no risk concentrations or
interdependencies that could have a significant influence
on the Group’s financial position, financial performance,
and liquidity situation are discernible, with the exception
of the threat of renewed drastic worsening of the world
economy. Because the Axel Springer Group has been
covered by new insurance since 2009, its exposure to
terrorism risks is not the same as in prior years. Although
such risks are still significant, they can no longer endan-
ger the company’s survival as a going concern or exert a
significant influence on the Group’s financial position,
financial performance, and liquidity situation. Aside from
this change, the risk assessment of the Axel Springer
Group has not changed significantly from the prior year.
Assessment of opportunities
Financial risks
The financial risks especially relevant to the Axel Springer
Group are interest rate risk and currency risk. Interest
rate risk can arise from financial liabilities with variable
interest rates and from investments in fixed-income
securities. Currency risks arise in connection with reve-
nues and net investment income in foreign currencies.
Market opportunities
If the economy were to perform better than currently
projected by leading economic institutions, that would
have a positive effect on the Axel Springer Group’s circu-
lation and advertising revenues. An overall negative de-
velopment would present the possibility of competitors
withdrawing from the market in connection with a market
Management Report of the Group and Management Report of Axel Springer AG 85
adjustment, thereby improving the market position of our
properties and operations in the long term. Furthermore,
there is the possibility of acquiring companies at lower
fair value measurements. Especially in sports-connected
media, additional circulation and advertising revenues
could be generated in connection with the major events
of 2010, such as the Winter Olympics in Vancouver and
the World Soccer Cup in South Africa.
Political opportunities
The strengthening of intellectual property rights by
means of the introduction of a publisher’s ancillary copy-
right could have a positive effect in Germany.
Strategic opportunities
The successful internationalization of Axel Springer
through the development and expansion of its presence
in robustly growing foreign markets offers opportunities
to increase revenues and net profits. In implementing its
internationalization strategy, the company has the crucial
advantage over its competitors of having already attained
strong market positions in many countries, even leading
positions in numerous segments. The digitization strat-
egy offers particularly great opportunities for generating
additional revenues via the dynamic development of
revenues in the online advertising market. Axel Springer
is taking advantage of this market trend through the swift
and consistent combination of print and online offerings,
and by investing in companies, entering into cooperation
agreements, and continually expanding its existing and
newly acquired activities.
Marketing opportunities
Due to the fact that Axel Springer Media Impact, the
Group’s central marketing unit, is one of the highest-
reach cross-media marketers in Europe, Axel Springer
is in a good position to compete for large TV advertis-
ing budgets.
Description of the key characteristics of
the internal control and risk manage-
ment system as it relates to the financial
accounting process of the company and
the Group (Section 289 (5) and Section
315 (2) (5) HGB) including the accom-
panying report of the Management Board
The risk management system of the Axel Springer AG as
well as of the Axel Springer Group comprises all the
organizational regulations and measures required to
assure the detection and management of risks arising
from business activity. With regard to the financial ac-
counting process both of the Axel Springer AG and of
the Group, the internal control system is designed to
ensure that the financial reporting system presents a true
and fair view of the financial position, liquidity, and finan-
cial performance of the Axel Springer AG and of the Axel
Springer Group, in accordance with the applicable laws
and standards.
The Management Board bears the overall responsibility
for the internal control and risk management system as it
relates to the financial accounting process of the Axel
Springer AG and of the Group. All the companies in-
cluded in the consolidated financial statements are inte-
grated with the Group by means of a clearly defined
management and reporting organization.
We consider the following elements of Axel Springer’s
internal control and risk management system to be sig-
nificant with regard to the financial accounting process of
the Axel Springer AG and of the Group:
(cid:132) Processes for identifying, assessing, and documenting
all significant businesses processes and risk areas that
are relevant to the financial accounting system, includ-
ing the related key controls. Such processes include
financial reporting and accounting processes, as well
as administrative and operational processes that gen-
erate significant information for the preparation of the
consolidated financial statements and management
report of the Axel Springer AG and the Group.
86 Annual Report 2009 Axel Springer AG
Events after the
balance sheet date
(cid:132) Process-integrated controls (computer-aided controls
and access restrictions, dual control principle, separa-
tion of functions, analytical controls)
No significant events or developments of particular im-
portance have occurred since the balance sheet date for
2009.
(cid:132) Standardized financial accounting processes through
the use of a Group Shared Service Center for most of
the recorded transactions included in the consoli-
dated financial statements
(cid:132) Assurance of uniform accounting through Group-wide
guidelines, procedures and trainings
(cid:132) Monthly internal reports for the Group (complete
income statement, balance sheet, cash flow state-
ment) and monthly reports on all cost units of the
Group, including analysis and reporting of significant
developments and budget/actual variances.
The effectiveness of the internal control and risk man-
agement system as it relates to the (Group’s) financial
accounting system is systematically reviewed and evalu-
ated by means of regularly performed control tests; a
Group-wide reporting system ensures that up-to-date
information is provided on a regular basis to the Man-
agement Board and the Supervisory Board.
Management Report of the Group and Management Report of Axel Springer AG 87
Outlook
Anticipated economic environment
General economic environment
Now that the financial markets crisis and global recession
have been overcome, the expectations for the future de-
velopment of the economic environment have brightened
again. The IMF is predicting global economic growth of
3.9 % for 2010. However, this growth will be driven less by
the industrialized nations and more by the emerging
economies. The international financial markets are still not
functioning at full strength. The fact that credit conditions
are still restrictive worldwide will have a tremendous nega-
tive impact on the ability to raise financing for investments
and new jobs. Furthermore, the need to consolidate pub-
lic-sector budgets and social security systems in Germany
and abroad is becoming ever more urgent. This circum-
stance could lead to additional burdens on the citizens of
the respective countries and exert a negative influence on
their consumer spending propensity.
The German economy will gain pace only slowly in
2010. ifo is predicting real growth of 1.7 %. The funds
provided in connection with the various economic
stimulus packages will slowly run out and market forces
will assume a more prominent role. Consumer spend-
ing is expected to provide only little impetus to the
economy. Although net incomes are rising as a result of
tax cuts (especially those contained in the Growth Ac-
celeration Act), consumer spending will hardly rise from
the level of 2009, as an increase of only 0.2 % in real
terms is expected.
According to ifo, a sudden drop in employment is not
to be expected in 2010. According to that institute, the
average annual number of unemployed persons can be
expected to rise by 0.2 million to 3.6 million. In that
case, the unemployment rate would rise from 8.1 % to
8.6 %. Consumer prices will increase only at a moder-
ate rate of 0.6 %. In view of the fact that the economic
recovery is rather subdued, price pressures will remain
in effect. Exports are expected to regain momentum
relatively quickly and increase at a real rate of 8.4 % in
2010. According to ifo’s forecast, however, investment
in plant and equipment will expand only at a restrained
rate of 1.0 % in 2010, below the growth rate of the
overall economy.
Internationally, the downward slide has been arrested
in most of the eastern European member states of the
EU; according to ifo, however, a quick economic recov-
ery is not foreseeable at the present time.
In Poland, a real economic growth rate of 2.2 % is pre-
dicted for 2010, while the economy of the Czech Repub-
lic is expected to expand by 1.5 %. In Hungary, a further
moderate decrease of 0.5 % is predicted. Russia can be
expected to experience an economic recovery during the
course of 2010. The real growth rate for 2010 is ex-
pected to be 1.5 %.
In western Europe, economic growth is likewise expected
to be restrained. According to forecasts, the French
economy will revive somewhat and probably expand at a
real rate of 1.6 % in 2010. For Switzerland, economic
growth of 1.1 % is anticipated. In Spain, it will probably
take longer for an economic recovery to set in, because
the collapse of the building sector and the anticipated
austerity measures of the Spanish government will stand
in the way of a rapid recovery; according to forecasts,
the Spanish economy will contract by 0.5 % in real terms
in 2010.
Industry environment
In view of the anticipated stagnation of consumer spend-
ing, the German press distribution market will likely be
restrained again in 2010, even as competition pressure
remains intense. Due to the rising use of digital media,
but also due to the growing availability of free advertis-
ing papers, the average circulation of newspapers and
magazines is likely to continue falling. Renewed copy
price increases are hardly feasible in many cases, with
the result that the circulation declines will probably affect
circulation revenues to a greater extent than in the pre-
ceding year. The trend of declining print media circula-
tion will also persist in the key international markets of
Axel Springer.
On the other hand, the global advertising market is ex-
pected to stabilize, following the worst drop in worldwide
advertising expenditures in decades. According to the
latest forecast by ZenithOptimedia (Advertising Expendi-
ture Forecasts of December 2009), a slight worldwide
increase of 0.9 % is anticipated for 2010, assuming that
88 Annual Report 2009 Axel Springer AG
the economy continues to improve. According to Zenith-
Optimedia, the markets of North America, western Europe,
and Japan, which were hard hit by the economic crisis,
will recover more slowly and even contract again in 2010.
For the TV market in Germany, the media agency Zenith-
Optimedia is predicting a 1.6 % decline in net advertising
revenues. For the radio market, ZenithOptimedia an-
ticipates a 1.0 % increase in net advertising revenues
over the level of 2009.
In view of the still fragile state of the German economy,
it is hard to discern any positive factors that would stimu-
late the advertising market. Consequently, all the relevant
associations and industry representatives consider it
probable that competition for tight advertising budgets
will intensify among media outlets.
In addition, the development of the advertising market is
influenced by structural and political factors. For the time
being, the extent to which national and European law-
makers will expand or restrict the leeway for commercial
advertising is unclear. Government intervention in com-
mercial advertising, as in the case of food products,
alcoholic beverages, or cars, for example, could prompt
advertisers to seek new communication channels be-
yond the traditional media to advertise their products.
The advertising market in Germany could also be
strained further by the ongoing push for more regulation,
especially on the EU level. This scenario would be exac-
erbated by the pressure for change associated with the
shrinking and ageing of the population in Germany.
For Germany, ZenithOptimedia predicts a 1.5 % contrac-
tion in the total advertising market; specifically, the net ad
volume of newspapers is expected to decline by 1.8 %
and that of magazines by 3.3 %. For 2010, the Central
Association of the German Advertising Industry (ZAW)
anticipates that companies will spend 3 % less on adver-
tising than in 2009. This forecast refers to both conven-
tional media, as well as direct advertising and online
advertising, among other segments.
According to ZenithOptimedia, net advertising expendi-
tures in the online market (including search term mar-
keting and affiliate advertising) can be expected to con-
tinue growing at a rate of 2.1 % in 2010. Thus, increas-
ingly larger proportions of advertising budgets will be
allocated to digital media. In general, it is expected that
the mobile and stationary Internet will converge further
from the perspective of users.
The communication industry sees new growth opportu-
nities mainly in new marketing offers, networked adver-
tising concepts, the creation of new business lines, and
product innovations. The industry expects that the two
sports highlights of 2010, the Winter Olympics in Van-
couver and the World Soccer Cup in South Africa, will
provide a boost to the advertising market, with sports-
related advertising channels benefiting most.
For the international markets in which Axel Springer is
active, ZenithOptimedia (as of December 2009) is fore-
casting a mixed development of the net advertising
revenues (including classified ads) of newspapers and
magazines.
Anticipated Print Advertising Demand 2010 (Selection)
Change in net ad volume
compared to prior year
Newspapers Magazines
Germany
Poland1)
Switzerland2)
Hungary
France
Spain1)
Russia3)
Czech Republic2)
– 1.8 %
– 8.2 %
– 0.6 %
2.2 %
– 0.8 %
– 3.2 %
– 3.3 %
– 7.5 %
– 1.3 %
2.2 %
– 3.5 %
– 4.5 %
5.2 %
2.5 %
2.8 %
Source: Forecast according to ZenithOptimedia, Advertising Expenditure Forecasts
2009.
1) Excluding classified ads.
2) Gross ad volume, excluding classified ads.
3) Print media in total.
Based on the assumption of constant exchange rates,
ZenithOptimedia expects that the net ad volume in the
online market of western Europe will increase by 4.6 %
to US-$ 16.3 billion in 2010. The growth rates in some of
the eastern European markets will probably be much
higher.
Management Report of the Group and Management Report of Axel Springer AG 89
Anticipated Advertising Demand for Online Media
(Selection)
Change in net ad volume
compared to prior year
Germany
Poland
Switzerland
Hungary
France
Spain
Russia
Czech Republic
2010
2.1 %
13.6 %
12.3 %
10.6 %
10.3 %
11.0 %
14.8 %
15.6 %
2009
1.2 %
8.6 %
13.2 %
7.6 %
6.5 %
5.0 %
– 13.4 %
25.7 %
Source: Forecast according to ZenithOptimedia, Advertising Expenditure Forecasts
2009.
Strategic and organizational orientation
In 2010 and beyond, Axel Springer will continue to pursue
its strategy based on the core elements of expanding the
market leadership position in the German-language core
business, internationalization, and digitization.
The market leadership position in the German-language
core business will be expanded by continually building
on our strong brands and by developing and establishing
innovative cross-media advertising formats. By this
means, the extraordinarily high reach of our print media
and content portals can be put to optimal use.
Axel Springer will continue energetically to pursue its
internationalization strategy. The Group will focus on
strong, established print brands that appeal to a broad
base of readers. Important criteria for making invest-
ments in companies are the editorial quality, the profes-
sionalism of the management, and the suitability of the
corresponding content for digital media. Geographically,
Axel Springer will focus mainly on the countries of central
and eastern Europe.
The digitization strategy is geared to expanding content
portals, marketplaces, and marketing. With regard to the
content portals, we will focus on the continued develop-
ment of paid content and offers. In this endeavor, we can
make use of the experiences gathered in connection with
the popular formats that have already been introduced.
In the segment of marketplaces, the Group’s portfolio
has been expanded significantly through the acquisition
of StepStone. In the marketing segment, we intend to
pursue further international growth as a result of the
acquisition of Digital Window’s affiliate network, as a
complement to the business of zanox.
Significant adjustments to the Group’s organization are
not planned from today’s perspective.
Anticipated business developments and
operating performance
The consequential effects of the global recession will
continue to be felt in the press distribution and advertis-
ing markets, especially in view of the fact that the market
has begun to stabilize on a comparatively low level.
For the full year 2010, we anticipate stable to slightly
higher revenues for the Group, with revenue growth in
the low single-digit range. Although circulation revenues
are expected to fall, we anticipate higher advertising and
other revenues. We believe that the declines in the print
business can be made up with rising revenues from the
digital media. As a result of operational improvements,
positive effects from restructuring measures, and the
continued practice of strict cost discipline in all areas of
the Group, EBITDA for the full year 2010 is expected to
be around 10 % higher than the corresponding prior-
year figure.
Assuming that the economic recovery continues, we
anticipate a further, slight increase in revenues and
EBITDA in fiscal year 2011. The continual expansion of
the Group’s international and digital business activities
will be the main driver of that growth.
90 Annual Report 2009 Axel Springer AG
As for the segments, we expect that the total revenues
of the Newspapers National segment will be moderately
lower in 2010, due to slightly lower advertising and circu-
lation revenues. Despite the lower income from invest-
ments resulting from the discontinuation of the contribu-
tions of the regional newspapers that were sold, we will
strive to increase EBITDA by means of the restructuring
measures that have been initiated.
The Group’s German magazines continue to operate in
an extremely challenging competitive environment; there-
fore, we anticipate that revenues in the advertising and
press distribution market will continue to come under
pressure. Nonetheless, we anticipate that EBITDA for
the Magazines National segment will be higher than
the prior-year figure due to the efficiency enhancement
measures that have been implemented.
Based on early signs of a market stabilization in the
fourth quarter of 2009, our expectations for the Print
International segment are cautiously positive, even
though advertising and circulation revenues are expected
to decline further. We expect that this segment’s EBITDA
will be substantially higher than the corresponding figure
for 2009, also due to the fact that the positive effects of
the substantial reduction of cost structures will be re-
flected in the full-year results for the first time.
The anticipated significant revenue growth in the digital
media is based on organic growth and on the full-year
consolidation of StepStone and Digital Window. Both
advertising revenues and other revenues are expected to
be instrumental in the expected revenue growth. The
significantly higher revenues and our growing success in
generating profits in our brand-derived online activities
are expected to result in a higher EBITDA for the Digital
Media segment.
For the Services/Holding segment, we anticipate slightly
lower revenues and also a lower EBITDA, due to higher
project costs and lower income from investments.
Anticipated development of liquidity
and financial position
According to the current planning status, the Group’s
liquidity and financial position will not change significantly
in 2010. Axel Springer has extensive short-term and
long-term credit facilities, which can also be used for
acquisitions. Based on the capital expenditures projects
planned to date, investments in property, plant and
equipment and intangible assets will likely be higher than
the corresponding prior-year figure, due in part to the
further development of the Group’s web-based systems
and IT infrastructure. The financing will be provided by
the cash flow from operations.
Dividend policy
Axel Springer strives to maintain a continuous dividend
policy, in accordance with the Group’s business devel-
opment and operating performance, in a manner that
allows for the further strengthening of the equity base
and the financing of growth.
Anticipated workforce development
Despite constant workforce adjustment measures in the
German print business, the average workforce in the
Group for 2010 is expected to be higher than the corre-
sponding figure for 2009, mainly due to the integration of
StepStone and Digital Window into the Axel Springer
Group. Furthermore, the organic growth of digital media
will lead to a slight increase in personnel.
Planning assumptions
We plan the future development of the financial perfor-
mance, liquidity, and financial position on the basis of
assumptions that are plausible and sufficiently probable
from today’s perspective; nonetheless, such assump-
tions are fraught with great uncertainties in the current
economic environment. The actual development, there-
fore, could possibly be much different from the assump-
tions applied and the resulting business plans and trend
forecasts.
Management Report of the Group and Management Report of Axel Springer AG 91
Disclosures pursuant to Sections 289 (4), 315
(4) HGB and Explanatory Report pursuant
to Section 176 (1) (1) AktG
Composition of subscribed capital
The company’s subscribed capital amounts to
€ 98,940,000 and is divided into 32,980,000 registered
shares, each representing an imputed share of the capi-
tal stock equivalent to € 3.00. The shares can be trans-
ferred only with the company’s consent (registered
shares of restricted transferability, see below). The com-
pany has only one class of shares.
All shares carry the same rights and obligations. Each
share grants the right to cast one vote in the annual
shareholders’ meeting and represents the basis for de-
termining the shareholder’s entitlement to the company’s
net profit. By way of exception, the treasury shares do not
confer any rights to the company (cf. Section 71b AktG).
Restrictions on voting rights or transfer of shares
By virtue of Article 5 para. 3 of the company’s Articles of
Incorporation, shares of Axel Springer AG and subscrip-
tion rights can be transferred only with the company’s
consent. Such consent must be granted by the Man-
agement Board, although internally, it is the Supervisory
Board that adopts the resolution to grant such consent.
According to the company’s Articles of Incorporation,
such consent can be refused without indication of rea-
sons. However, the company will not arbitrarily refuse its
consent to the transfer of company shares.
The share transfer restriction agreements described
below, which the company has concluded with various
shareholders for the purpose of upholding the restric-
tions on the transfer of shares set forth in the Articles of
Incorporation even in the case of indirect share transfers,
give rise to transfer restrictions based on the German law
of obligations (Schuldrecht). In exchange, the company
has, in most cases, agreed to pledge the shares in ques-
tion to the financing banks.
(cid:132) In connection with the acquisition of company shares by
Hellman & Friedman in October 2003, the company en-
tered into a share transfer restriction agreement with
Hellman & Friedman (and with the purchasing compa-
nies affiliated with Hellman & Friedman and with
Deutsche Bank Aktiengesellschaft and Deutsche Bank
Luxembourg S.A.) on October 8, 2003. In this agree-
ment, Hellman & Friedman expressly recognized the re-
strictions on the transfer of shares according to the
company’s Articles of Incorporation as binding upon it
and its affiliated companies. In exchange, the company
promised to support a widely distributed sale of the
shares held by Hellman & Friedman on the stock ex-
change or by means of a secondary placement (subject
to the condition that no more than 4 % of the company’s
capital stock would be transferred to a single investor)
and to take all the necessary steps to obtain a stock ex-
change listing for the shares of Axel Springer AG on the
Frankfurt Stock Exchange. It is expressly stated in the
share transfer restriction agreement that the correspond-
ing support obligations of the company will have no
bearing on the share transfer restrictions according to
the company’s Articles of Incorporation. A secondary
placement has been effected in the meantime, through
the partial sale of the shares held by Hellman & Friedman
in fiscal year 2006 (representing 9.8 % of the company’s
capital stock at that time).
(cid:132) In connection with the purchase of company shares
from Dr. h. c. Friede Springer by Good Media Invest-
ment Holdings S.A.R.L., the company entered into
another share transfer restriction agreement with Mi-
chael Lewis, Nova Trust Ltd. in its capacity as the
trustee of Michael Lewis Capital Discretionary Settle-
ments, and other “ML” investors held directly and in-
directly by Nova Trust Ltd., alone or as a majority
owner (Hague Holdings Ltd., Colmar Investment
Holdings Ltd., and Media Investment Holdings
S.A.R.L.), and the Governor and Company of the
Bank of Scotland, by date of February 16, 2006. In
this share transfer restriction agreement, the compa-
nies participating on the side of Michael Lewis prom-
ised to observe the share transfer restrictions set forth
in the company’s Articles of Incorporation in respect
of all indirect and direct purchases, disposals, and
encumbrances of the company’s shares. Under the
supplementary agreement of July 31/September 11,
2006, the company granted its prior consent to the
acquisition of up to 340,000 additional shares of the
company (representing 1 % of the existing capital
stock) by Good Media Investment Holdings S.A.R.L.,
and the parties agreed to apply the obligations under
the share transfer restriction agreement of February
16, 2006 to the shares to be purchased in the future
92 Annual Report 2009 Axel Springer AG
as well. In the confirmation agreement of May 21,
2007, the parties specified that the above-mentioned
agreements will also apply to any loan increase and to
the existing subordinated pledge right that had again
been stipulated for the shares by way of precaution.
(cid:132) Finally, a share transfer restriction agreement was
concluded between Dr. Mathias Döpfner, the company
Brilliant 310. GmbH, Axel Springer AG, and M.M. War-
burg & Co. KGaA dated July 31/August 4, 2006. Under
this share transfer restriction agreement, the direct and
indirect purchase of and the direct and indirect disposal
over the shares of Axel Springer AG by Brilliant 310.
GmbH or Dr. Mathias Döpfner were made contingent
on the prior consent of Axel Springer AG according to
the company’s Articles of Incorporation.
Furthermore, transfer restrictions based on the German
law of obligations apply in connection with the bonus
share and share ownership program for the employees
of the Axel Springer Group. The holding period is set at
one year for the bonus share and at two years for the
share ownership program (see page 46).
The company is not aware of any restrictions on voting rights.
Shareholdings that represent more than 10 % of the
company’s voting rights
At the end of the fiscal year 2009, Axel Springer Gesell-
schaft für Publizistik GmbH & Co. KG held around
51.5 % of the company’s capital. This investment is
attributable to AS Publizistik GmbH (in its function as
general partner of Axel Springer Gesellschaft für Pub-
lizistik GmbH & Co. KG), Friede Springer GmbH & Co.
KG, Friede Springer Verwaltungs GmbH (in its function
as general partner of Friede Springer GmbH & Co. KG),
and Dr. h. c. Friede Springer herself. At the end of fiscal
year 2009, Dr. h. c. Friede Springer directly held an addi-
tional holding equal to about 7.0 % of the company’s
capital stock. Thus, the total shareholding controlled by
Dr. h. c. Friede Springer amounted to around 58.5 %.
Shares endowed with special rights that confer
powers of control
There are no shares endowed with special rights that
would confer powers of control.
Manner of exercising voting rights when
employees hold shares in the company’s capital
and do not directly exercise their rights of control
In connection with the two employee share ownership
programs implemented in 2009 (see page 46), Deutsche
Bank AG was initially recorded in the Share Register as a
third-party holder with respect to the shares transferred
to employees. However, every employee is at liberty to
have himself or herself recorded in the Share Register as
a shareholder.
Statutory provisions and provisions of the Articles
of Incorporation relative to the appointment and
dismissal of Management Board members and
amendments to the Articles of Incorporation
The company’s Articles of Incorporation provide that the
Management Board of Axel Springer AG must be com-
posed of at least two members. The Supervisory Board
decides on the number of Management Board members
and on the appointment and dismissal of Management
Board members. The term of office is at the most five years
and can be re-established or renewed for no more than five
years thereafter (cf. Section 84 (1) (1) to (4) AktG). If more
than one person has been appointed to the Management
Board, the Supervisory Board is authorized to appoint one
of those members as the Chairman (Section 84 (2) AktG). If
a required Management Board member would be lacking,
the court is authorized, in urgent cases, to appoint the
necessary member at the request of one involved party
(Section 85 (1) (1) AktG). The Supervisory Board is author-
ized to revoke the appointment of a Management Board
member and the Management Board Chairman for impor-
tant cause (cf. Section 84 (3) (1) and (2) AktG).
Amendments to the company’s Articles of Incorporation
require a resolution of the annual shareholders’ meeting,
carried not only by a simple majority of the votes cast, but
also by at least three quarters of the capital present and
represented at the time of voting on the resolution (cf.
Section 179 (2) (1) AktG in conjunction with Article 21 para.
2 of the company’s Articles of Incorporation). An amend-
ment of the management principles set forth in Article 3 of
the Articles of Incorporation requires a majority equal to at
least four-fifths of the capital present and represented at
the time of voting on the resolution (cf. Article 21 para. 3 of
the company’s Articles of Incorporation).
Management Report of the Group and Management Report of Axel Springer AG 93
The Supervisory Board is authorized to resolve amend-
ments to the Articles of Incorporation that only involve
changes to the wording (Article 13 of the Articles of
Incorporation).
Authority of the Management Board to issue or buy
back shares
Axel Springer AG has established no authorized or con-
ditional capital that would authorize the Management
Board to issue new shares.
By resolution of the annual shareholders’ meeting of April
23, 2009 (Agenda Item 6), the Management Board is
authorized, with the consent of the Supervisory Board, to
purchase the company’s own shares up to an amount
equivalent to 10 % of the current capital stock in the time
until October 22, 2010. Such purchases can be effected
on the stock exchange or by means of a public offer to
all shareholders or a public invitation to submit an offer.
In addition, the company is authorized to purchase the
company’s own shares in connection with the Manage-
ment Participation Program for the Management Board
that was resolved at the annual shareholders’ meeting of
April 14, 2004, in the time until October 22, 2010
(Agenda Item 7 of the annual shareholders’ meeting of
April 23, 2009).
Along with the shares held by the company or attribut-
able to the company in accordance with Sections 71 a ff.
AktG, the shares purchased by virtue of the foregoing
authorizations may not at any time exceed 10 % of the
company’s capital stock. Details concerning these two
authorizations are provided in the invitation to the annual
shareholders’ meeting of April 23, 2009, which is avail-
able on the website of Axel Springer AG. (See also
Agenda Items 6 and 7 and the Management Board’s
report on this subject).
At the end of 2009, the company held 3,179,784 of its
own shares (representing 9.6 % of the capital stock).
Significant agreements of the company subject to
the condition of a change of control resulting from
a takeover offer
With the exception of a € 1,500,000,000 credit facility, the
company has not entered into any significant agreements
that would be subject to a change of control resulting from
a takeover offer. The € 1,500,000,000 credit facility ex-
tended to the company by a bank syndicate by date of
August 14, 2006 is subject to the condition of a change of
control insofar as the bank syndicate is entitled, in such a
case, to terminate the credit facility with advance notice of
30 days in the event of a change of control. Aside from
specific exceptions that relate to the shareholders that
currently control Axel Springer AG, a change of control is
understood to mean, in the context of the credit facility,
the acquisition of shares of Axel Springer AG representing
more than 50 % of the capital stock and/or voting rights by
one or more parties acting together.
Indemnification agreements of the company with
Management Board members or employees in the
event of a change of control
The majority of the members of the Management Board
is entitled to cancel their employment contracts in re-
sponse to a change of control. In such a case, they will
be entitled to payment of their base salary for the re-
maining term of their contract, according to the most
recent agreement, but at least to payment of one year’s
base salary. Furthermore, the company will pay the per-
formance-based compensation at the pro-rated per-
centage for the period of time served in the year of resig-
nation. The employment contracts of the Management
Board members do not provide for any other compensa-
tion in the event of the termination of the employment
contract in response to a change of control.
There are no such indemnification agreements with em-
ployees of the company.
Final Declaration as per Section 312 (3)
AktG
“According to the circumstances known to the manage-
ment at the time of each transaction with an affiliated
company, Axel Springer AG received adequate consid-
eration for every such transaction and did not take or fail
to take any actions in fiscal year 2009, either at the be-
hest or in the interest of the controlling company or a
company affiliated with the controlling company.”
94 Annual Report 2009 Axel Springer AG
Declaration on Corporate Governance
pursuant to Section 289a HGB and
Corporate Governance Report
The Declaration on Corporate Governance pursuant to
Section 289a of the German Commercial Code (HGB)
comprises the Declaration of Conformity pursuant to
Section 161 of the German Stock Corporations Act
(AktG), as well as relevant disclosures concerning man-
agement practices, a description of the internal proce-
dures followed by the Management Board and Supervi-
sory Board, and listings of the composition and proce-
dures of their committees. In accordance with Section
3.10 of the German Corporate Governance Code, the
Management Board reports on the company’s corporate
governance (Corporate Governance Report), also on
behalf of the Supervisory Board, in the Declaration on
Corporate Governance.
Responsible corporate governance
Good corporate governance as a guiding principle
At Axel Springer, good corporate governance is consid-
ered to be a crucial element of responsible management
and control and thus an essential basis for the com-
pany’s lasting success. In this regard, we are guided by
the German principles of sound corporate management,
especially as set forth in the German Corporate Govern-
ance Code.
We have taken appropriate measures to implement and
ensure compliance with the principles of corporate gov-
ernance. The Management Board member in charge of
“Finance and Services” also serves as Corporate Gov-
ernance Officer. The implementation of, and adherence
to, the recommendations of the German Corporate Gov-
ernance Code are reviewed on a continual basis. The
Chairmen of the Management Board and the Supervi-
sory Board are informed of the results of this review on a
regular basis.
Declaration of Conformity pursuant to
Section 161 AktG
In accordance with Section 161 of the German Stock
Corporations Act (AktG), the Management Board and
Supervisory Board of Axel Springer AG hereby make the
following declaration:
I.
“Axel Springer adheres to the recommendations of the
German Corporate Governance Code (the Code) in the
version of June 18, 2009, published by the Federal Min-
istry of Justice in the official announcements section of
the electronic Federal Gazette on August 5, 2009, with
the following exceptions:
1) The published list of third-party companies in which
the company holds an equity investment that is not in-
significant for the company in question contains the
legally required disclosures (Section 7.1.4 (3) of the
Code).
To the extent that information regarding the equity and
profit or loss can be omitted in accordance with the
foregoing, the company does not make such disclosures,
in order to avoid any disadvantages for the private indi-
viduals involved. Otherwise, the company has made full
use of the allowed option of presenting some of the
required disclosures in a list of equity holdings, instead of
in the notes to the (consolidated) financial statements, for
the last time in fiscal year 2009; this option is no longer
allowed for fiscal year 2010 due to the elimination of
Sections 287, 313 (4) HGB by the Accounting Moderni-
zation Act (BilMoG) that entered into force on May 29,
2009.
2) For members of the Supervisory Board, a deductible
equal to at least 10 % of the insured loss under D&O
insurance and up to one and a half times the fixed an-
nual compensation of Supervisory Board members will
be stipulated for members of the Supervisory Board, in
accordance with the legal situation as for members of
the Management Board, only as of July 1, 2010 (Section
3.8 (5) of the Code).
Because the higher minimum deductible applicable to
members of the Management Board (Section 93 (2) (3)
AktG) under the D&O insurance contracted prior to Au-
gust 5, 2009 (as in the case of the company) is to take
effect only as of July 1, 2010 in accordance with Section
23 (1) EGAktG, the increase in the minimum deductible
for members of the Supervisory Board will also be ef-
fected only as of July 1, 2010, for reasons of uniformity
and efficiency.
Management Report of the Group and Management Report of Axel Springer AG 95
3) The compensation granted to each individual member
of the Supervisory Board and the fees paid by the com-
pany to individual members of the Supervisory Board for
the services provided by them are not disclosed in the
Corporate Governance Report (Section 5.4.6 (6) and (7)
of the Code).
Such itemized information is not disclosed because the
competitors of Axel Springer Aktiengesellschaft also do
not publish such compensation information.
II.a.
In the time since the last Declaration of Conformity was
published in December 2008, with amendments in Feb-
ruary 2009, until the new version of the Code was an-
nounced on August 5, 2009, the company has adhered
to the German Corporate Governance Code in the ver-
sion of June 6, 2008, published by the Federal Ministry
of Justice in the official announcements section of the
electronic Federal Gazette on August 8, 2008, with the
exception of the points I.1) and I.3) mentioned above and
the exceptions noted below.
1) In fiscal year 2009, as in prior years, the Personnel
Committee of the Supervisory Board resolved on the
compensation system of the Management Board, includ-
ing the main contractual elements (Section 4.2.2 (1) of
the Code).
The resolution by the Personnel Committee, which regu-
larly deals with matters related to the Management Board,
assured an objective and appropriate decision. In the
future, however, the Supervisory Board intends to resolve
on the Management Board compensation system in its
full session, in accordance with the recommendation of
the Code.
2) The full Supervisory Board did not review the com-
pensation system of the Management Board in fiscal
year 2009 (Section 4.2.2 (1) of the Code).
In view of the fact that the Personnel Committee of the
Supervisory Board adopted a resolution on the restruc-
tured compensation system of the Management Board in
connection with the introduction of the new Management
Participation Program in fiscal year 2009, a further review
of the compensation system so shortly thereafter did not
appear to be necessary. In the future, however, the
Supervisory Board intends to review the compensation
system of the Management Board in its full session on a
regular basis again, as in the past, in accordance with
the recommendation of the Code.
3) The Management Participation Program adopted by
the annual shareholders’ meeting on April 14, 2004 does
not stipulate a cap in the event of extraordinary, unfore-
seeable developments (Section 4.2.3 (8) of the Code).
The Management Participation Program entails practi-
cally no financial burden for the company. By virtue of an
option contract entered into with the shareholders H&F
Rose Partners, L.P. and H&F International Rose Partners,
L.P., Axel Springer AG is entitled to repurchase the same
number of shares that have been sold to the members of
the Management Board under the Management Partici-
pation Program at a comparable price or receive a cash
settlement instead. Due to the financial protection af-
forded by this agreement, the Management Participation
Program does not stipulate a cap depending on the
share price.
II.b.
Axel Springer has adhered to the recommendations of
the German Corporate Governance Code (the Code) in
the version of June 18, 2009, published by the Federal
Ministry of Justice in the official announcements section
of the electronic Federal Gazette on August 5, 2009, in
the time since it was announced, with the exception of
the points I.1), I.2), and I.3) as well as points IIa.1) and
IIa.2) mentioned above.
Berlin, December 2009
Axel Springer AG
The Supervisory Board The Management Board”
96 Annual Report 2009 Axel Springer AG
This Declaration of Conformity pursuant to Section 161
AktG was published in December 2009. Like the older
versions, it can be viewed at www.axelspringer.de/
declarationofconformity.
Relevant standards and practices of
corporate governance
Axel Springer is the only media company to have a cor-
porate constitution. The principles set forth therein are
anchored in Article 3 of the company’s Articles of Incor-
poration and therefore serve as a guideline for all em-
ployees. The corporate constitution can be viewed at
and downloaded from www.axelspringer.de/corporate-
principles. The main principles of the corporate constitu-
tion are presented in the section entitled “Social respon-
sibility” on page 47 of this report.
A Managerial Guideline concretizes the requirements to
be met by the management of the Axel Springer Group
in accordance with the corporate constitution.
Axel Springer has also instituted Guidelines of Journalis-
tic Independence, which concretize and broaden the
scope of the journalistic principles set forth in the Code
of Conduct of the German Press Council. Specifically,
they address the separation between advertising and
editorial texts and delineate the boundaries between the
private and business interests of reporters and editors;
they forbid personal enrichment and set rules for the
treatment of sources. Thus, these guidelines define the
framework conditions for independent and critical jour-
nalism in the editorial departments of all media of the
Axel Springer Group. The editors-in-chief are responsible
for observing and implementing the guidelines in the
company’s day-to-day activities. The complete guide-
lines can be viewed at www.axelspringer.de/guidelines.
Finally, Axel Springer has developed a catalog of social
standards known as the International Social Policy. This
policy clarifies the company’s position with respect to
human rights, the rule of law, the protection of children
and adolescents, the treatment of employees, health and
safety, and the compatibility of work and family, among
other issues. The International Social Policy can be
downloaded from www.axelspringer.de/socialpolicy_en.
Internal procedures of the Management
Board and Supervisory Board and the
composition and procedures of their
committees
Cooperation between the Management Board and
Supervisory Board
In accordance with the prescriptions of law, a dual sys-
tem of management and supervision has been imple-
mented at Axel Springer. The Management Board man-
ages the company under its own responsibility. The
Supervisory Board appoints the members of the Manage-
ment Board and monitors and advises the Management
Board in the conduct of business. The two boards work
closely together, in an atmosphere of trust and confi-
dence, to enhance the company’s value. The two boards
are strictly separated from each other with respect to
personnel and responsibilities.
Management by the Management Board
In its capacity as the executive managerial instance, the
Management Board is bound by duty to promote the
company’s interests and enhance the company’s value
on a sustainable basis. It develops the company’s busi-
ness strategy and is responsible for implementing that
strategy, in coordination with the Supervisory Board. The
Management Board manages the company’s business in
accordance with the relevant laws, Articles of Incorpora-
tion and its internal rules of procedure.
The Management Board provides comprehensive and
timely information to the Supervisory Board on all rele-
vant matters of strategy, planning, business develop-
ments, risks, and risk management. Important deci-
sions of the Management Board require the approval of
the Supervisory Board. Such decisions include, in par-
ticular, the creation or discontinuation of business divi-
sions, the acquisition or sale of significant equity in-
vestments, and the adoption of the company’s annual
budget and financial plan.
Management Report of the Group and Management Report of Axel Springer AG 97
The internal rules of procedure of the Management
Board contain detailed prescriptions. They govern the
following matters, among others:
(cid:132) The obligation to observe, comply with, and ensure
the Group-wide implementation of the corporate
constitution
(cid:132) The division of managerial responsibilities and the
decisions to be made by the full Management Board
(cid:132) The duties of the Management Board Chairman
(cid:132) Transactions that require the consent of the Supervi-
sory Board
(cid:132) The prompt, regular provision of comprehensive in-
formation to the Supervisory Board
(cid:132) Rules governing meetings and resolution procedures,
and
(cid:132) Reporting duties and the disclosure of conflicts of
interest.
The Management Board currently consists of four
members:
(cid:132) Dr. Mathias Döpfner (Chairman, head of “Subscription
Newspapers and International”)
Supervision and advice by the Supervisory Board
The Supervisory Board consists of nine members, who
are elected by the annual shareholders’ meeting. The
term of office of Supervisory Board members is five years;
they are eligible for re-election at the end of their terms.
The Supervisory Board elects its Chairman from among
its own ranks; the term of office of the Supervisory Board
Chairman is coincident with that of the Supervisory
Board. The Supervisory Board advises the Management
Board and oversees its work, meeting at least four times
a year. In case of necessity, it meets without the Man-
agement Board in attendance. Meetings may be held
and resolutions adopted also by way of written corre-
spondence, telephone calls, telexes, or other forms of
telecommunication. The Supervisory Board discusses
the company’s business developments, planning, strat-
egy, and significant capital expenditures at regular inter-
vals of time. The Supervisory Board adopts the separate
financial statements of Axel Springer AG and approves
the consolidated financial statements of the Group. The
Supervisory Board reviews the efficiency of its work on a
regular basis. For information on the specific activities of
the Supervisory Board in 2009, please refer to the Re-
port of the Supervisory Board (see pages 107ff.).
The internal rules of procedure of the Supervisory Board
fulfill the requirements of the German Corporate Gover-
nance Code, with the few exceptions mentioned in the
Declaration of Conformity. These rules govern the follow-
ing matters, among others:
(cid:132) Rudolf Knepper (Vice Chairman, head of “Printing,
(cid:132) The election and duties of the Chairman and Vice
Logistics and HR”)
Chairman
(cid:132) Lothar Lanz (Chief Financial Officer and Chief Operat-
(cid:132) The convocation of meetings
ing Officer)
(cid:132) Dr. Andreas Wiele (head of “BILD Group and Magazines”)
The members of the Management Board bear joint re-
sponsibility for the management of the company; they
work together in a collegial manner and keep each other
regularly informed of important measures and events in
their respective areas of responsibility.
(cid:132) The adoption of resolutions within meetings or by way
of written correspondence or telephone consultation,
and
(cid:132) The obligation to disclose conflicts of interest.
98 Annual Report 2009 Axel Springer AG
The members of the Supervisory Board are:
Executive Committee
(cid:132) Dr. Giuseppe Vita (Chairman)
Responsibilities
Members in fiscal year 2009
(cid:74) Publishing and journalistic
(cid:74) Dr. Giuseppe Vita (Chairman)
(cid:132) Dr. h. c. Friede Springer (Vice Chairwoman)
affairs
(cid:74) Dr. h. c. Friede Springer
(cid:132) Dr. Gerhard Cromme
(cid:132) Oliver Heine
(cid:132) Klaus Krone
(cid:132) Prof. Dr. Wolf Lepenies
(cid:132) Michael Lewis
(cid:132) Dr. Michael Otto
(cid:132) Brian M. Powers
The term of office of all current Supervisory Board mem-
bers ends upon the close of the regular annual share-
holders’ meeting in 2014.
Composition and internal procedures of
committees
The Management Board has not instituted any commit-
tees. The Supervisory Board currently has four commit-
tees: the Executive Committee, Personnel Committee,
Nominating Committee, and Audit Committee. The
members and responsibilities of the committees are
presented below:
(cid:74) Strategy, financial planning
(Vice Chairwoman)
(cid:74) Capital expenditures, financing (cid:74) Dr. Gerhard Cromme
(cid:74) Klaus Krone
(cid:74) Preparation of decisions for the
organization of the Management
Board
(cid:74) Approval of the sale of
registered shares of Axel
Springer AG and of subscription
rights for such registered shares
(cid:74) Approval of management
measures requiring the approval
of the Supervisory Board, which
have been referred to the
Executive Committee
Personnel Committee
Responsibilities
Members in fiscal year 2009
(cid:74) Preparation of decisions
(cid:74) Dr. Giuseppe Vita (Chairman)
(cid:74) Dr. h. c. Friede Springer
(Vice Chairwoman)
(cid:74) Dr. Gerhard Cromme
regarding the appointment and
dismissal of Management Board
members
(cid:74) Resolutions on the conclusion,
amendment, and termination of
employment contracts with
Management Board members
(except determination and
change of their compensation)
(cid:74) Resolutions on the extension of
loans within the meaning of
Sections 89, 115 AktG
(cid:74) Approval of contracts with
Supervisory Board members as
per Section 114 AktG
(cid:74) Representation of the company
in legal transactions with
Management Board members
(cid:74) Approval of management
measures requiring the approval
of the Supervisory Board, which
have been referred to the
Personnel Committee
Management Report of the Group and Management Report of Axel Springer AG 99
Nominating Committee
Responsibilities
Members in fiscal year 2009
(cid:74) Preparation of proposals
(cid:74) Dr. Giuseppe Vita (Chairman)
(cid:74) Dr. h. c. Friede Springer
(Vice Chairwoman)
(cid:74) Dr. Michael Otto
regarding the appointment and
dismissal of Management Board
members
(cid:74) Formulation and review of the
required qualifications which the
company expects of Supervisory
Board members
(cid:74) Observation of the national and
international environment in
order to identify suitable
candidates
Audit Committee
Responsibilities
Members in fiscal year 2009
(cid:74) Preparation of decisions for the
(cid:74) Dr. Giuseppe Vita (Chairman)
adoption of the separate
financial statements and the
approval of the consolidated
financial statements
(cid:74) Dr. h. c. Friede Springer
(Vice Chairwoman)
(cid:74) Preliminary review of the annual
(cid:74) Klaus Krone
(cid:74) Oliver Heine, since April 2009
financial statements,
Dependency Report,
consolidated financial
statements, management report
and Group management report
(cid:74) Review of the proposal for the
utilization of the unappropriated
net profit
(cid:74) Review of the interim financial
statements and interim reports
(cid:74) Review of the risk management
system
(cid:74) Discussion of the audit report
and the report on the auditor’s
review of interim financial
statements with the independent
auditor
(cid:74) Preparation of the proposal for
the election of the independent
auditor for the annual
shareholders’ meeting
(cid:74) Issuance of the audit
engagement for the separate
financial statements and
consolidated financial
statements, adoption of audit
priorities
his decisions, pursue personal interests or take advan-
tage of business opportunities that should be the prov-
ince of the company.
Management Board members may not, in connection
with their activities, request or accept gifts or other bene-
fits either for their own benefit or that of others, or grant
unjustified benefits to third parties. Any sideline activities
of the Management Board members require the consent
of the Supervisory Board. The Management Board mem-
bers are subject to a comprehensive anti-competition
clause during the period of their activity for Axel Springer.
Every Management Board member must inform the
Supervisory Board of any conflict of interest without
delay. In the same manner, every Supervisory Board
member must inform the Supervisory Board of any such
conflicts without delay. The Supervisory Board reports
any conflicts of interest and the manner of handling them
to the annual shareholders’ meeting (for information on
conflicts of interest arising in fiscal year 2009, see the
Report of the Supervisory Board on page 107 and the
Corporate Governance Report below.
Seats held by Management Board and Supervisory
Board members on other supervisory boards
A summary of the seats held by the Management Board
and Supervisory Board members of Axel Springer AG on
other legally prescribed Supervisory Boards and/or com-
parable boards in Germany and abroad can be found on
page 182.
Corporate Governance Report 2009
Further development of Corporate Governance
The new version of the German Corporate Governance
Code adopted on June 18, 2009 contains a number of
changes, most of which were necessitated by the Act on
the Appropriateness of Management Board Compensa-
tion (VorstAG), which entered into force in August 2009.
These changes are the following:
Conflicts of interest
The members of the Management Board and Supervi-
sory Board are bound by duty to promote the interests of
the company. No member of either board may, through
(cid:132) Section 3.8 of the GCGC now prescribes quantitative
requirements for the deductible of Management Board
members under D&O insurance. That deductible must
be at least equal to 10 % of the insured loss; the
100 Annual Report 2009 Axel Springer AG
maximum limit must be at least one and a half times
the fixed annual compensation. A corresponding de-
ductible should be stipulated for members of the
Supervisory Board as well.
(cid:132) According to Section 4.2.2, the full Supervisory Board
sets the total compensation of the individual Man-
agement Board members. In addition, the full Super-
visory Board should adopt and regularly review the
compensation for the Management Board. The ap-
propriateness of the total compensation is to be as-
sessed with respect to the duties of each individual
member of the Management Board, his personal per-
formance, and the economic situation of the company.
If an outside compensation expert is consulted, care
must be taken to ensure his independence.
(cid:132) According to Section 4.2.3, the compensation struc-
ture must be geared to the objective of sustainable
business development; as a rule, variable compensa-
tion components should be measured on the basis of
results spanning several years, should take into ac-
count both positive and negative developments, and
should not induce the members of the Management
Board to take inappropriate risks.
(cid:132) Section 4.2.4 was updated to reflect the legal require-
ments relative to the itemized disclosure of Manage-
ment Board compensation.
Other changes pertain to the Supervisory Board. With
regard to the composition of the Management Board and
the proposals made for the election of Supervisory Board
members, the Supervisory Board should give due consid-
eration to the principle of diversity. Management Board
members may not be elected to the company’s Supervi-
sory Board until two years after the expiration of their term
of office as Management Board members, unless they are
elected at the proposal of shareholders representing more
than 25 % of the voting rights in the company. In this latter
case, a former Management Board member should be
appointed as the Chairman of the Supervisory Board only
in exceptional cases, which must be justified to the annual
shareholders’ meeting. In addition, it is recommended that
the Chairman of the Audit Committee should be independ-
ent and not a former member of the company’s Manage-
ment Board whose term of office there ended less than
two years previous to their new appointment.
Axel Springer adheres to the new legal requirements and
recommendations of the German Corporate Governance
Code, with the reservation that the new regulations and
recommendations concerning the deductible under D&O
insurance will be implemented in mid-2010. In view of the
fact that considerable parts of the long-term variable com-
pensation elements had been newly introduced in fiscal
year 2009, a review of the compensation system of the
Management Board by the full Supervisory Board did not
appear to be necessary. In the future, however, the Super-
visory Board intends to review the compensation system of
the Management Board in its full session on a regular basis
again, as in prior years, in accordance with the recommen-
dation of the Code. For information on other exceptions to
the recommendations of the Code, please refer to the Dec-
laration of Conformity of December 2009.
Conflicts of interest
No conflict of interest arose for any member of the Man-
agement Board in 2009. In the Supervisory Board, two
conflicts of interest arose in 2009, which are described in
the following. In July 2009, the Supervisory Board deliber-
ated on the conclusion of a settlement agreement be-
tween Axel Springer AG and Hellman & Friedman. The
subject of this agreement was the waiver by the company
of its right to exercise a call option to purchase 62,300
shares in the company from Hellman & Friedman in con-
nection with the Management Participation Program. In
exchange, Axel Springer received a cash settlement. To
avoid any possible conflicts of interest, Supervisory Board
member Brian Powers did not participate in the voting.
Acting on the recommendation of the Personnel Commit-
tee, the Supervisory Board voted to approve, in December
2009, the cash settlement of the share options held by
the eligible Management Board members in connection
with the Management Participation Program 2004, which
would expire in December 2009, and an agreement with
Hellman & Friedman to amend the call option agreement
of April 8, 2004. Also in this matter, Brian Powers ab-
stained from voting in order to avoid any possible conflicts
of interest. No further conflicts of interest arose for mem-
bers of the Supervisory Board in fiscal year 2009.
Shareholders and annual shareholders’ meeting
The annual shareholders’ meeting of Axel Springer AG is
the central governing authority in which the shareholders
exercise their rights and cast their votes. Every share
Management Report of the Group and Management Report of Axel Springer AG 101
confers the right to cast one vote in the annual share-
holders’ meeting. Those shareholders who are registered
in the share register and have registered for the meeting
in time are entitled to vote. The Chairman of the Supervi-
sory Board also chairs the shareholders’ meeting. To
make it easier for shareholders to exercise their preroga-
tives at the annual shareholders’ meeting, their votes can
be cast by authorized representatives. In particular, Axel
Springer AG designates a voting proxy whom sharehold-
ers can elect to exercise their voting rights according to
their instructions at the annual shareholders’ meeting. All
required reports and documents are made available to
the shareholders prior to the meeting, also by posting
them on the company’s website.
The annual shareholders’ meeting specifically reaches
decisions concerning the utilization of the unappropriated
net profit, the ratification of the actions of the Manage-
ment Board and Supervisory Board, the election of the
Supervisory Board, the selection of the independent
auditor, and other matters reserved for them by law,
such as corporate actions regarding changes in capital
and other amendments to the Articles of Incorporation.
The resolutions of the annual shareholders’ meeting
require a simple majority of the votes cast, unless an-
other majority is prescribed by law or by the company’s
Articles of Incorporation. The Articles of Incorporation
can be viewed at the company’s website at
www.axelspringer.de/articlesofassociation.
Transparency
Axel Springer is committed to always providing compre-
hensive, timely, and consistent information on the signifi-
cant events and developments relevant to an evaluation of
the company’s present and future business performance
to all capital market participants. The company reports on
its business situation and results in its annual report, at its
annual financial statements press conference, and in its
quarterly reports. For this purpose, the company also uses
Internet communication channels whenever possible. To
the extent required by law, the company also provides
information in the form of ad-hoc announcements and
press releases and on the company’s website.
To ensure the equal treatment of all capital market partici-
pants, information relevant to the capital markets is pub-
lished at the same time in the German and English lan-
guages on the company’s website. The financial reporting
dates are published in the financial calendar with sufficient
advance notice. In accordance with Section 15 a of the
German Securities Trading Act (WpHG), any changes in
the composition of the shareholder structure that are
subject to the reporting obligation according to Section 26
WpHG and the purchase and sale of shares by persons
who perform management duties at Axel Springer (direc-
tors’ dealings) are promptly reported as well.
Shareholdings and directors’ dealings
At the balance sheet date of December 31, 2009, the
Management Board members of the company directly or
indirectly held 429,684 shares of Axel Springer AG. Of
that number, 373,449 shares were held indirectly by
Dr. Mathias Döpfner via the company Brilliant 310. GmbH.
The remaining 56,235 shares are held directly by the
Management Board members (including Dr. Mathias
Döpfner). The Management Board members eligible
under the Management Participation Program 2004 and
in office as of December 31, 2009, also hold options to
purchase up to 214,312 additional shares of Axel
Springer AG based on the Management Participation
Program 2004 and subject to its terms.
At the balance sheet date, the Supervisory Board mem-
bers directly or indirectly held a total of 20,511,437 shares
of Axel Springer AG. Dr. h. c. Friede Springer held
17,000,010 shares indirectly via the companies Friede
Springer GmbH & Co. KG and Axel Springer Gesellschaft
für Publizistik GmbH & Co., and 2,308,980 shares di-
rectly. Michael Lewis held another 1,190,447 shares
indirectly via the companies Good Media Investment
Holdings S.à r.l. and TriAlpha Oceana Concentrated
Opportunities Fund Ltd. Another 10,000 shares were
held by Dr. Giuseppe Vita and 2,000 shares by
Mr. Oliver Heine.
Preparation and auditing of the financial
statements
The consolidated financial statements and interim finan-
cial statements are prepared in accordance with Interna-
tional Financial Reporting Standards (IFRS), as they are
to be applied in the European Union. In addition, the
consolidated financial statements contain the disclosures
prescribed by Section 315a (1) HGB.
102 Annual Report 2009 Axel Springer AG
The Management Board of Axel Springer AG is responsi-
ble for preparing the consolidated financial statements.
The independent auditor audits the consolidated financial
statements. Axel Springer publishes the consolidated
financial statements within 90 days and the quarterly re-
ports within 45 days of the respective period ending dates.
The company makes full use of the allowed options to
present some of the required disclosures in a list of eq-
uity holdings, rather than in the notes to the financial
statements and the notes to the consolidated financial
statements. The list of equity holdings contains the le-
gally prescribed disclosures. To the extent that it is pos-
sible to omit the disclosure of equity and profit-or-loss
information, such disclosures are omitted.
Dealings with shareholders that are to be classified as
related parties within the meaning of the applicable
financial accounting regulations are disclosed in the
notes to the consolidated financial statements.
In accordance with the German Corporate Governance
Code, it was agreed with the independent auditor that
the latter will inform the Chairman of the Supervisory
Board or the Audit Committee without delay of any cir-
cumstances arising during the course of the audit that
would constitute grounds for disqualification or partiality.
It was also agreed that the independent auditor will im-
mediately report any matters and events arising during
the course of the audit that fall within the purview of the
Supervisory Board. It was further agreed that the inde-
pendent auditor would inform the Chairman of the Audit
Committee or make an observation in the audit report if
he discovered any facts during the course of the audit
that would contradict the Declaration of Conformity by
the Management Board and Supervisory Board accord-
ing to Section 161 AktG.
Actions for nullification and disclosure,
both ongoing and ended in fiscal year 2009
On May 24, 2006, Dr. Oliver Krauß filed an action to nullify
the resolutions of the annual shareholders’ meeting of
April 27, 2006 relating to Agenda Item 3 (Ratification of the
actions of the Management Board), Agenda Item 4 (Ratifi-
cation of the actions of the Supervisory Board), and
Agenda Item 6 (Authorization to purchase and use the
company’s own shares according to Section 71 (1) (8)
AktG). Pomoschnik Rabotajet GmbH joined the action
before the Berlin Regional Court (Case No. 23 U 88/07) on
the side of the plaintiff. Following the oral proceedings of
April 26, 2007, the Berlin Regional Court dismissed the
action and assigned the costs to the plaintiff. On June 12,
2007, the plaintiff filed an appeal with the Berlin Appellate
Court against this judgment of the Berlin Regional Court
(Case No. 93 O 88/07). The appeal was denied and the
costs were assigned to the appellant by the judgment of
May 26, 2008. The appeal against this denial of appeal
was allowed only to a limited extent, with regard to Agenda
Item 4 (Ratification of the actions of the Supervisory Board).
Thereupon, the plaintiff filed an appeal with the Federal
Supreme Court against the judgment of the Berlin Appel-
late Court (Case No. II ZR 174/08) and, to the extent that
the appeal was not allowed, the appellant also filed an
appeal against denial of leave to appeal. The Federal Su-
preme Court completely allowed the appeal against denial
of leave to appeal by judgment of April 6, 2009. In its ruling
of September 21, 2009, the Federal Supreme Court set
aside the appellate judgment of the Berlin Appellate Court
of May 26, 2008 to the extent that the action for nullification
of the ratification resolutions of the annual shareholders’
meeting of April 27, 2006 had been dismissed. The Federal
Supreme Court declared the corresponding resolutions
(Agenda Items 3 and 4) to be void because the originally
correct Declaration of Conformity issued by the Manage-
ment Board and Supervisory Board in December 2005 had
become incorrect in accordance with Section 161 (1) AktG
(old version) with respect to conformity with the recom-
mendation set forth in Section 5.5.3 of the German Corpo-
rate Governance Code, in that the disclosure of a conflict of
interest had been accidentally omitted in the report of the
Supervisory Board to the annual shareholders’ meeting. In
all other respects, the Federal Supreme Court dismissed
the action for nullification. Therefore, the resolutions on the
ratification of the actions of the Management Board and
Supervisory Board for fiscal year 2005 will be repeated at
the annual shareholders’ meeting in 2010.
On May 18, 2007, Dr. Oliver Krauß filed an action to nullify
the resolutions of the annual shareholders’ meeting of
April 19, 2007 relating to Agenda Item 3 (Ratification of the
actions of the Management Board), Item 4 (Ratification of
Management Report of the Group and Management Report of Axel Springer AG 103
the actions of the Supervisory Board), and Item 8 (Special
authorization to purchase and use the company’s own
shares according to Section 71 (1) (8) AktG in connection
with the Management Participation Program). Mr. Frank
Scheunert joined this action pending before the Berlin
Regional Court (Case No. 95 O 51/07) on the side of the
defendant. By judgment of November 1, 2007, the action
was dismissed and the costs were assigned to the plaintiff.
Dr. Krauß filed an appeal with the Berlin Appellate Court
against the judgment of dismissal (Case No. 23 U 188/07).
The appeal was denied and the costs were assigned to
the appellant in the oral proceedings of July 7, 2008. An
appeal against the denial of appeal was not allowed. Also
in this matter, the plaintiff filed an appeal against denial of
leave to appeal with the Federal Supreme Court (Case
No. II ZR 223/08), which the Federal Supreme Court dis-
missed by judgment of September 21, 2009. Thus, the
dismissal of the appeal is now unappealable.
By way of an action for disclosure according to Section
132 AktG of May 8, 2008, Dr. Oliver Krauß filed a motion
to place the Management Board under the obligation to
provide information about his questions that were allegedly
not answered at the 2008 annual shareholders’ meeting.
The oral proceeding before the Berlin Regional Court
(Case No. 90 O 40/08) took place on October 27, 2008.
In a partial ruling of the same date, the competent division
for commercial matters of the Berlin Regional Court found
the action for disclosure to be partially resolved in the main
issue and dismissed the action for disclosure with respect
to the majority of the questions in dispute. In its final ruling
of December 22, 2008, the Berlin Regional Court dis-
missed the action for disclosure also with respect to the
remaining questions in dispute. The plaintiff filed an appeal
with the Berlin Appellate Court against the partial judgment
of October 27, 2008 and against the final ruling of De-
cember 22, 2008) (combined Case No. 23 W 69/08). By
judgment of July 16, 2009, the Berlin Appellate Court
dismissed the appeals in full. On July 30, 2009, the plaintiff
filed a plea of remonstrance against this judgment, which
the Berlin Appellate Court dismissed, with assignment of
costs to the plaintiff, by judgment of November 2, 2009.
Thus, the dismissal of the appeal is now unappealable.
On May 20, 2008, Dr. Oliver Krauß filed another action to
nullify the resolutions of the annual shareholders’ meeting of
April 24, 2008 relating to Agenda Item 2 (Utilization of the
unappropriated net profit), Agenda Item 3 (Ratification of the
actions of the Management Board), Agenda Item 4 (Ratifica-
tion of the actions of the Supervisory Board), and Agenda
Item 7 (Special authorization to purchase and use the com-
pany’s own shares according to Section 71 (1) (8) AktG in
connection with the Management Participation Program).
On May 26, 2008, moreover, the shareholder Klaus Zapf
filed an action to nullify, or failing that, to annul the resolution
of the annual shareholders’ meeting of April 24, 2008 relat-
ing to the Agenda Item 3 (Ratification of the actions of the
Management Board). The Berlin Regional Court combined
the two actions into one (Case No. 98 O 49/08). The share-
holders Oliver Wiederhold, Gastro Beteiligungs AG and
SCI AG joined the action on the side of the defendant. The
Berlin Regional Court dismissed both actions in full on
March 17, 2009. The plaintiff Dr. Oliver Krauß filed an appeal
with the Berlin Appellate Court against this judgment (Case
No. 23 U 63/09), while the plaintiff Klaus Zapf did not pur-
sue the matter further. The oral proceeding before the Berlin
Appellate Court was held on January 25, 2010. The date of
announcement of the decision has been set for February 25,
2010. By order issued on February 25, 2010, the Berlin
court of appeal set a continuation and evidence-taking trial
date for May 3, 2010.
By way of an action for disclosure according to Section
132 AktG of May 6, 2009, Dr. Oliver Krauß filed a motion
to place the Management Board under the obligation to
provide information about his questions that were alleg-
edly not answered at the 2009 annual shareholders’
meeting. The action had been pending before the Berlin
Regional Court (Case No. 93 O 46/09), which dismissed
the action for disclosure in full without an oral proceeding
by its judgment of January 5, 2010, and did not allow an
immediate appeal. Thus, the dismissal of the action for
disclosure is now unappealable.
On May 21, 2009, Dr. Oliver Krauß filed another action to
nullify the resolution of the annual shareholders’ meeting of
April 23, 2009 relating to Agenda Item 7 (special authoriza-
tion to purchase and use the company’s own shares ac-
cording to Section 71 (1) (8) AktG in connection with the
Management Participation Program), and the elections of
Dr. h. c. Friede Springer and Mr. Brian Powers to the Super-
visory Board of the company (Agenda Item 8). Furthermore,
104 Annual Report 2009 Axel Springer AG
Dr. Krauß filed a declaratory motion to establish that the
company is obligated to make available to him, in his ca-
pacity as a shareholder of the company, a copy of parts of
the “stenographic record from its question-recording and
question-answering system,” that include his questions and
comments and the information provided to him by the
company in return. The proceeding is currently pending
before the Berlin Regional Court (Case No. 95 O 52/09).
The shareholders SCI AG and Oliver Wiederhold joined the
action on the side of the defendant. The oral proceeding
took place on February 25, 2010; the date of announce-
ment of the decision has been set for March 29, 2010.
Compensation report
Axel Springer’s compensation policy is based on the
principle of performance-oriented compensation for the
work of the Management Board and Supervisory Board,
with compensation consisting of fixed and variable per-
formance-dependent components.
Management Board
In fiscal year 2009, as in prior years, the Personnel Commit-
tee of the Supervisory Board of the company resolved on
the compensation system for the Management Board,
including the main contractual elements. In the future, how-
ever, the Supervisory Board intends to resolve on the Man-
agement Board compensation system in its full session, in
accordance with the amended legal requirements and the
recommendation of the German Corporate Governance
Code (the Code). The full session of the Supervisory Board
did not review the compensation system in fiscal year 2009.
In view of the fact that considerable parts of the long-term
variable compensation elements had been newly introduced
in fiscal year 2009, such a review did not appear to be
necessary. In the future, however, the Supervisory Board
intends to review the compensation system of the Man-
agement Board in its full session on a regular basis again,
as in prior years, in accordance with the recommendation of
the Code. In accordance with the requirements of the
VorstAG and the recommendations of the German Corpo-
rate Governance Code, the compensation of Management
Board members consists of fixed and variable elements.
The variable compensation elements are composed of a
cash component and long-term, share-based compensa-
tion components. Every compensation component is ap-
propriate in itself and also in their entirety. The criteria ap-
plied for assessing the appropriateness of the total com-
pensation are the duties of each individual member of the
Management Board, his or her personal performance, and
the economic situation of the company, as well as the suc-
cess and future prospects of Axel Springer. Due considera-
tion is given also to our industry environment. No outside
compensation experts were consulted in fiscal year 2009.
The fixed compensation consists of the fixed annual
salary; in addition, the members of the Management
Board receive a company car and security expenditures
as ancillary benefits. The fixed annual salary is set for the
full term of an employment contract and is paid in twelve
monthly installments. It is determined, among others, on
the basis of the duties of each individual member of the
Management Board and the current economic situation,
success, and future prospects of the Group.
The variable compensation element in the form of a
cash component is limited as to the maximum amount. It is
determined on the basis of the individual board member’s
performance, both with regard to individual goals and
Group goals, which consist of the consolidated EBITDA,
the Group-wide customer satisfaction index, the revenues
of the Digital Media segment, and EBITDA of the Digital
Media segment. For that purpose, the Group goals are
adopted by the Supervisory Board for every fiscal year. The
individual goals applied to measure the performance of the
individual board member are determined by agreement
between the Supervisory Board Chairman and the respec-
tive Management Board member; the Supervisory Board
Chairman also adopts the goal fulfillment for the cash
component in agreement with the Management Board
member.
Long-term variable compensation components exist
in the form of two share-based compensation elements, the
Management Participation Program established in 2004,
and a Virtual Share Options Program established in 2009.
Management Participation Program: In 2004, the members
of the Management Board purchased a total of 62,300
shares of Axel Springer AG. The purchased shares were
subject to a multi-year holding period, which lapsed for
50 % of the purchased shares on December 18, 2007 and
for 50 % of the purchased shares on December 18, 2008.
In conjunction with this personal investment on their part, the
Management Report of the Group and Management Report of Axel Springer AG 105
members of the Management Board were granted share
options for the purchase of originally up to 498,400 shares.
The number of exercisable options was dependent on the
achievement or over-achievement of certain EBITA targets in
fiscal years 2005 and 2006. These targets were surpassed.
At the grant date in 2004, the value of the options was
€ 16.018 million. The imputed compensation component for
2009 was € 0 thousand (PY: € 406 thousand). In total,
34,888 options were exercised in 2009. On December 17,
2009, the eligible Management Board members waived
their right to exercise 214,312 options and received in
exchange a claim to payment of a cash settlement of
€ 12.00 per option. The cash settlement, which was paid
in January 2010, amounted to € 2,572 thousand, which
was € 4,329 thousand less than the fair value of the corre-
sponding options at the grant date. As of December 31,
2009, therefore, 249,200 share options were still out-
standing. For more information on the Management Par-
ticipation Program, please also refer to the comments in
Note (13f) of the notes to the consolidated financial state-
ments, as well as the statements made in the Declaration
of Conformity pursuant to Section 161 AktG on page 94,
and the detailed description of the Management Participa-
tion Program at www.axelspringer.de/managementshare
program.
Virtual Share Option Plan: Effective July 1, 2009, 375,000
virtual share options were issued to the members of the
Management Board. The virtual share options have a life of
six years, i.e., until June 30, 2015, and can be exercised at
the earliest after four years, i.e., on July 1, 2013. Provided
that the Management Board employment contract or ap-
pointment to the Management Board remained in effect at
least until June 30, 2013, all virtual share options granted
to the Management Board member can become vested. If
a member resigns from the Management Board after June
30, 2010, but before July 1, 2013, the virtual share options
granted to him will be vested only pro rata temporis in
proportion to the four-year vesting period. Other vesting
conditions include performance and outperformance hur-
dles in relation to the share price of the Axel Springer share.
The share options can be exercised only when the average
share price of Axel Springer AG will have been at least
30 % higher than the baseline value of € 60.86 during the
90 calendar days prior to exercising the share options and
if the percentage increase in the share price of the Axel
Springer share will have exceeded the percentage increase
in the DAX stock market index over the same period. Every
share option embodies a claim to payment of an amount
equal to the appreciation of the Axel Springer share, but
limited to a maximum amount of € 121.72; this amount is
the difference between the volume-weighted average share
price during the 90 calendar days prior to exercise of the
share options and the baseline value. The Management
Board members are obligated to hold one Axel Springer AG
share for every 10 share options as a personal investment.
Disposition of these shares prior to exercise of the options
will lead to the forfeiture of the share options, in the propor-
tion of one share for every 10 share options. At the grant
date, the value of the virtual share options was € 4,743
thousand. In fiscal year 2009, the imputed compensation
component was € 1,460 thousand. For more information
on the subject of the Virtual Share Option Plan, please also
refer to our comments in Note (13f) of the notes to the
consolidated financial statements.
Contractual pension commitments have been extended
to most members of the Management Board. Pension
payments commence at the end of the 62nd year of life
of the respective Management Board member, if that
member no longer serves on the board at that time. In
the event of an earlier departure from the company, the
Management Board member will have a vested right to
pension payments in proportion to his length of service
with the company, provided that he will have worked for
the company for at least five years. Payments are also
due in the event of completely reduced earnings capacity
lasting for an indefinite period of time.
Most members of the Management Board are entitled to
cancel their employment contracts in the event of a
change of control. In such a case, they will be entitled to
payment of their base salary for the remaining term of their
contract, according to the most recent agreement, but at
least to payment of one year’s base salary. Furthermore,
the company will pay the performance-based compensa-
tion at the pro-rated percentage for the period of time
served in the year of resignation. The employment con-
tracts of the Management Board members do not provide
for any other compensation in the event of termination of
the employment contract due to a change of control.
The total compensation of the Management Board
in fiscal year 2009 amounted to € 17.7 million
(PY: € 13.1 million). The fixed salaries amounted to
106 Annual Report 2009 Axel Springer AG
€ 8.9 million (PY: € 8.2 million); this figure includes an
amount of € 426 thousand for ancillary benefits (com-
pany car and security expenses). The total variable com-
pensation for the same period amounted to € 8.8 million
(PY: € 4.9 million). The imputed compensation compo-
nent in connection with the long-term share-based com-
pensation (Management Participation Program 2004 and
Virtual Share Option Plan) totaled € 1,460 thousand (PY:
€ 406 thousand). Neither this amount nor the cash set-
tlement of € 2,572 thousand paid in January 2010 in
exchange for the waiver of exercise of share options in
connection with the Management Participation Program
are included in the above-mentioned total compensation.
In connection with the pension rights granted to Manage-
ment Board members, the pension provisions increased
by an amount of € 736 thousand (PY: € 897 thousand).
No loans or advances were extended to members of the
Management Board in fiscal year 2009.
Axel Springer AG does not disclose the total compensa-
tion of each named member of the Management Board
itemizing his name because Sections 314 (2) and 286 (5)
HGB expressly state that such itemized disclosure is not
required if a qualified majority of the annual shareholders’
meeting resolves to withhold disclosure. The annual
shareholders’ meeting of Axel Springer AG held on April
27, 2006 passed such a resolution with the requisite
majority. The reason for non-disclosure is the fact that
Axel Springer AG’s competitors also do not disclose their
compensation on an itemized basis.
Supervisory Board
The compensation is determined by the annual shareholders’
meeting and regulated in Article 16 of Axel Springer AG’s
Articles of Incorporation. Accordingly, the compensation is
comprised of fixed and variable components. The Super-
visory Board receives a fixed annual salary of € 2.0 million.
In addition, it also receives compensation in the amount of
€ 1 thousand for every cent (€ 0.01) of the dividend per
share in excess of € 0.15, or a minimum of 4.0 % of share
capital per share, distributed to shareholders. The Super-
visory Board also receives compensation in the amount of
€ 300 thousand if the basic earnings per share for the
fiscal year (based on the share of the company’s share-
holders in consolidated net income) exceeds the basic
earnings per share of the third previous fiscal year calcu-
lated in the same manner by 15 % or more.
For fiscal years in which no positive consolidated net
income can be applied as a reference benchmark, an
amount of € 3.00 per share will be applied as the refer-
ence benchmark for calculating the increase in the fiscal
year net income. For fiscal years that close with a con-
solidated net loss, only the fixed compensation of
€ 2.0 million will be paid. The Supervisory Board decides
how the aforementioned amounts are distributed among
its members, with adequate consideration of its mem-
bers’ activities as Chairman and in the committees.
The Supervisory Board received total compensation of
approximately € 2.4 million (PY: € 2.7 million) for its
work in fiscal year 2009. The variable compensation of
€ 425 thousand (PY: € 725 thousand) was determined
on the basis of the dividend proposed by the Manage-
ment Board and Supervisory Board; therefore, it is sub-
ject to the reservation of a corresponding resolution by
the annual shareholders’ meeting. The prior-year variable
compensation in the total amount of € 725 thousand
was composed of an amount of € 425 thousand based
on the paid dividend of € 4.40 and another amount of
€ 300 thousand, due to the fact that the undiluted earn-
ings per share for fiscal year 2008 had exceeded the
undiluted earnings per share calculated in the same
manner for the third-to-last fiscal year by 15 % or more.
This precondition was not met in the case of the undi-
luted earnings per share for fiscal year 2009.
In addition, the company reimburses every member of the
Supervisory Board for his or her expenses and for the
valued-added tax payable on their compensation. The
company pays the premium for the D&O insurance taken
out for members of the Supervisory Board. One member
of the Supervisory Board is paid an annual professional
fee of € 125 thousand for his services as an author.
By way of exception to Section 5.4.6 (6) and (7) of the
Code, the itemized compensation paid to individual
members of the Supervisory Board and the itemized
compensation paid in respect of personally rendered
services is not presented in the Corporate Governance
Report because the competitors of Axel Springer AG
also do not disclose such information.
Report of the
Supervisory Board
Report of the Supervisory Board 107
107
In fiscal year 2009, the Supervisory Board worked close-
ly with the Management Board in a spirit of trust and
confidence, and supervised the management of the
company in accordance with applicable laws and regula-
tions, the company’s Articles of Incorporation, and the
principles of good corporate governance. In its meetings
and the meetings of its committees, as well as by means
of additional written and oral reports by the Management
Board, the Supervisory Board obtained detailed informa-
tion about the company’s situation and development,
important business transactions, and the risk manage-
ment program on a regular basis. The Management
Board also kept the Supervisory Board informed of sig-
nificant events in the time between its meetings. In addi-
tion, the Supervisory Board Chairman and the Manage-
ment Board Chairman held information and consultation
meetings on a regular basis.
The Supervisory Board discussed with the Management
Board all matters of crucial importance for the company,
including the company’s business plan, business strat-
egy, larger capital expenditure projects, and personnel
matters. Furthermore, the Supervisory Board discussed
significant individual transactions of importance to the
company’s future development and adopted resolutions
on those legal transactions and measures for which the
input of the Supervisory Board is required by law, by the
company’s Articles of Incorporation, or by the Manage-
ment Board’s internal rules of procedure.
At the regular annual shareholders’ meeting for 2009,
which was held on April 23, 2009, the Supervisory Board
was completely re-elected without personnel changes;
directly thereafter, Dr. Vita was confirmed as the Super-
visory Board Chairman and Dr. Springer as the Supervi-
sory Board Vice Chairwoman. The Supervisory Board
held a total of five meetings in 2009; four meetings (in-
cluding the constitutive meeting of April 23, 2009) were
held in the first half and one meeting in the second half of
the calendar year. One member attended fewer than half
the meetings of the Supervisory Board and was excused
for those absences.
In July 2009, the Supervisory Board deliberated by way
of written correspondence on the conclusion of a Set-
tlement Agreement between Axel Springer AG and Hell-
man & Friedman. The subject of this agreement was the
waiver by the company of its right to exercise a call op-
tion for the purchase of 62,300 shares in the company
from Hellman & Friedman in connection with the Man-
agement Participation Program 2004 for the Manage-
ment Board; in exchange, Axel Springer received a cash
settlement. To avoid any possible conflicts of interest,
the Supervisory Board member Brian Powers, Managing
Director of Hellman & Friedman, abstained from voting.
Acting on the recommendation of the Personnel Com-
mittee, the Supervisory Board voted to approve, in De-
cember 2009, the cash settlement of the share options
held by the eligible Management Board members under
the Management Participation Program 2004, which
expired in December 2009, and an agreement with
Hellman & Friedman to amend the call-option agreement
of April 8, 2004. Also in this matter, the Supervisory
Board member Brian Powers abstained from voting in
order to avoid any possible conflicts of interest. No fur-
ther conflicts of interest arose for members of the Super-
visory Board in fiscal year 2009.
As part of its deliberations in fiscal year 2009, the Super-
visory Board focused especially on evaluating the busi-
ness strategy of Axel Springer AG, under which the
company has consistently pursued the goals of “market
leadership in the German-language core business,”
“internationalization,” and “digitization” since 2001. With
reference to a Management Board presentation, the
Supervisory Board in this context focused in particular on
the steps taken to build the digital business and generate
multimedia growth, especially by means of monetization
strategies centered on the core competencies of the
company.
In addition, the Supervisory Board deliberated on the
parent company’s financial statements and on the con-
solidated financial statements of the Group at December
31, 2008, the agenda for the annual shareholders’ meet-
ing held in 2009, and the introduction of a central
108 Annual Report 2009 Axel Springer AG
compliance organization for the entire Axel Springer
Group, which had been resolved by the Management
Board. The Supervisory Board also discussed and ap-
proved the sale of the regional newspaper investments,
among other topics. The Supervisory Board adopted a
resolution on the Declaration of Conformity for 2009 in
December 2009. Furthermore, the Supervisory Board
reviewed the efficiency of its own work by means of a
self-evaluation and found its work to be orderly and
efficient. In early February 2010, the Supervisory Board
approved the 2010 finance plan presented by the Man-
agement Board.
On March 10, 2009, the Supervisory Board of Axel
Springer AG appointed Lothar Lanz as a new member of
the Management Board, charged with responsibility for
the Management Board division “Finance and Services,”
effective May 1, 2009. He took the place of Steffen
Naumann, who left Axel Springer AG as of that date
after more than seven years of successful service to the
company. The Supervisory Board wishes to thank Mr.
Naumann again for his successful service to the company.
In connection with the appointment of Mr. Lanz to the
Management Board and the assignment of the compli-
ance organization to the CFO, the Supervisory Board
adopted an updated division of managerial responsibilities.
Corporate Governance
In December 2009, the Management Board and Super-
visory Board issued their joint Declaration of Conformity
according to Section 161 AktG and made that declara-
tion permanently available on the company’s website.
Axel Springer AG adheres to nearly all the recommenda-
tions of the German Corporate Governance Code. The
Declaration of Conformity, along with an explanation of
the few exceptions to the recommendations, can be
found on page 94 of the Annual Report.
Additional information on corporate governance in the
Axel Springer Group may be found in the joint Corporate
Governance Report of the Management Board and
Supervisory Board, which is reproduced on page 99 as
part of the Declaration on Corporate Governance
Committees of the Supervisory Board
In the interest of performing its duties in an efficient man-
ner, the Supervisory Board has formed an Executive
Committee, a Personnel Committee, an Audit Committee,
and a Nominating Committee. The Chairman of the
Supervisory Board is the Chairman of the Executive
Committee, the Personnel Committee, the Audit Com-
mittee, and the Nominating Committee.
The Executive Committee, which is responsible for fun-
damental matters related to publishing and for matters of
strategy, business planning, capital expenditures, and
financing, among other matters, notwithstanding the
general responsibility of the full Supervisory Board, held
six meetings in 2009. Aside from personnel-related mat-
ters, the deliberations and resolutions of this committee
were devoted in particular to the decisions concerning
the acquisition or sale of companies or investments in
companies, including for example the acquisition of a
minority interest in the joint venture Infor Biznes Sp. z o.o.,
Warsaw/Poland, a majority interest in Digital Window Ltd,
London/Great Britain, and the acquisition of StepStone
ASA, Oslo/Norway, along with the subsequent squeeze-
out, as well as the sale of the company’s investments in
Westfalen-Blatt Vereinigte Zeitungsverlage GmbH and
Family Media GmbH & Co. KG, and the sale of the
titles Mädchen, Popcorn, and Jolie by the subsidiary
AS Mediahouse GmbH. The Executive Committee also
dealt with the investment in Dogan TV. In addition, it
deliberated on the bonus share and share ownership
program for employees and managers. Furthermore, the
Executive Committee adopted resolutions on the deci-
sions to grant approval to the transfer of shares of Axel
Springer AG, in accordance with Article 5 para. 3 of the
company’s Articles of Incorporation.
Until August 5, 2009, when the Appropriateness of Man-
agement Board Compensation Act (VorstAG) entered into
force, the Personnel Committee had been responsible in
particular for the conclusion, amendment, and termination
of employment contracts with members of the Manage-
ment Board. Since that date, the Personnel Committee’s
role in such matters concerning the determination or
modification of the Management Board compensation
has been limited to preparation.
Report of the Supervisory Board 109
The Personnel Committee held four meetings in fiscal
year 2009. It dealt with matters of Management Board
personnel, among other matters, and recommended to
the Supervisory Board, among other things, that Mr.
Lothar Lanz be appointed as a new member of the
Management Board charged with responsibility for Finance
and Services, and that the Management Board members
Rudolf Knepper and Dr. Andreas Wiele be reappointed to
the Management Board. Prior to the effective date of the
VorstAG, moreover, the Personnel Committee dealt with
the Management Board compensation system and re-
solved to introduce a new Management Participation
Program for the Management Board; after the VorstAG
entered into force, the Personnel Committee dealt with
the (old) Management Participation Program 2004 and
recommended to the Supervisory Board that the share
options held by the eligible members of the Management
Board under the Management Participation Program
2004, which expired in December 2009, be settled by
means of a cash settlement.
The Audit Committee kept itself informed of the status,
scope, execution, and results of the audit of the separate
financial statements of the parent company and the
consolidated financial statements of the Group for 2008,
prepared the decisions of the Supervisory Board on the
adoption of the separate financial statements and the
approval of the consolidated financial statements, re-
viewed the interim financial statements and interim re-
ports, clarified questions related to the independent
auditor, kept itself informed about the investment in
Dogan TV, and also kept itself informed about the risk
management system and the activities of the Internal
Audit Department. The Audit Committee held five meet-
ings in 2009. By resolution of the Supervisory Board at
its constitutive meeting of April 23, 2009, the number of
its members was extended from three to four.
The Nominating Committee met once in preparation for
the Supervisory Board elections at the annual sharehold-
ers’ meeting in 2009 and prepared the Supervisory
Board’s proposals regarding those elections to be pre-
sented to the annual shareholders’ meeting.
Separate financial statements of the
parent company and of the Group,
management report of the parent
company and of the Group
Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft,
audited the annual financial statements of the parent
company and the consolidated financial statements of
the Group, prepared by the Management Board as well
as the management report for the parent company and
the consolidated management report for the Group, for
the fiscal year 2009, and provided them with an unquali-
fied audit opinion in each case. In connection with the
audit, the independent auditor also noted in summary
that the Management Board has implemented a risk
management system that fulfills the statutory require-
ments, and that this system is basically suitable for the
early detection of any developments that could endanger
the company’s survival as a going concern.
The aforementioned documents and the proposal of the
Management Board for the utilization of the unappropri-
ated net profit, as well as the audit report of Ernst &
Young GmbH Wirtschaftsprüfungsgesellschaft, were
provided to all members of the Supervisory Board in a
timely manner.
The documents were discussed extensively in the pres-
ence of the independent auditor in the meetings of the
Audit Committee of February 24, 2010 and March 9,
2010. At these meetings, the independent auditor re-
ported on the principal findings of his audit. No deficien-
cies in the internal control and risk management system,
as it relates to the financial accounting process, were
noted. No circumstances that would cast doubt on the
impartiality of the independent auditor arose. Further-
more, the independent auditor did not render any ser-
vices other than the audit of financial services.
110 Annual Report 2009 Axel Springer AG
The Audit Committee reported on the results of its ex-
amination to the full Supervisory Board. At its meeting of
March 9, 2010, the Supervisory Board reviewed the
documents in question, having noted and duly consid-
ered this report of its committee and the report of Ernst
& Young GmbH Wirtschaftsprüfungsgesellschaft, and
having discussed them with the independent auditor,
who was in attendance.
The Supervisory Board acknowledged and approved the
audit results. Based on the results of its own review, the
Supervisory Board had no objections to raise. The Su-
pervisory Board approved the annual financial state-
ments of the parent company and the consolidated
financial statements of the Group as well as the man-
agement report of the Axel Springer AG and of the Axel
Springer Group that were prepared by the Management
Board, as well as the management report and the con-
solidated management report for the Group. As a result,
the 2009 annual financial statements of Axel Springer AG
were officially adopted.
The Supervisory Board also reviewed the proposal of the
Management Board concerning the utilization of the
unappropriated net profit and concurred with that pro-
posal, in consideration of the company’s fiscal year net
income, liquidity, and financing plan.
The Management Board also submitted its report on the
company’s dealings with related parties pursuant to
Section 312 of the German Stock Corporation Act (AktG)
to the Supervisory Board. The Supervisory Board was
also in receipt of the corresponding audit report by Ernst
& Young GmbH Wirtschaftsprüfungsgesellschaft. Both
reports were also provided to each member of the Su-
pervisory Board. The audit opinion of the independent
auditor reads as follows:
“Based on the audit and evaluation conducted in accor-
dance with our professional duties, we hereby confirm that
1.
2.
the factual information contained in the report is
correct, and
the consideration provided by the company in re-
spect of the legal transactions mentioned in the re-
port was not inappropriately high.”
The Supervisory Board also reviewed the report of the
Management Board on the dealings with related parties
pursuant to Section 312 AktG and the independent
auditor’s report on this subject. At the Supervisory Board
meeting of March 9, 2010, the independent auditor also
reported orally on the principal findings of his audit. The
Supervisory Board acknowledged and approved the
report of the independent auditor. Based on the final
results of its own review, the Supervisory Board had no
objections to raise with respect to the results of the audit
report of the independent auditor or the Management
Board’s declaration on the report pursuant to Section
312 (3) AktG.
Report of the Supervisory Board 111
Supervisory Board
Thank you to the members of the
Management Board and the employees
of the company
In closing, the Supervisory Board thanks the members of
the Management Board and all employees for their out-
standing work in the past fiscal year.
Berlin, March 9, 2010
The Supervisory Board
Dr. Giuseppe Vita
Chairman
Dr. Giuseppe Vita
Chairman
Dr. h. c. Friede Springer
Vice Chairwoman
Dr. Gerhard Cromme
Chairman of the Supervisory Board of ThyssenKrupp AG
Oliver Heine
Lawyer and partner in the law firm Oliver Heine & Partner
Klaus Krone
Member of the Supervisory Board of Axel Springer AG
Prof. Dr. Wolf Lepenies
University professor
Michael Lewis
Investment Manager
Dr. Michael Otto
Chairman of the Supervisory Board of
Otto (GmbH & Co. KG)
Brian M. Powers
Chief Executive Officer (CEO) of the investment group
Hellman & Friedman LLC
112 ullstein bild
“Freedom, when rightly understood—not
freedom from something but freedom for
something—is a rock-solid part of my
publishing creed.”
Axel Springer, 1978
ullstein bild 113
People have fought for freedom throughout history.
They have struggled for racial equality, against the
indiscriminate exercise of government authority, and
for civil and human rights.
What follows is a brief selection of themes from the
extensive holdings of ullstein bild, the photo agency of
Axel Springer AG. They are reminders of great pursuits
of freedom that made headlines in history.
BILD, JunE 27, 1963
The Berlin Wall was not yet two years old, the world had hardly
caught its breath following the Cuban Missile Crisis, and Cold
War tensions were at a high. This was the situation when
U.S. President John F. Kennedy gave the hope of freedom to
the half-city of West Berlin by his visit. And he made history
when he said, “All free men, wherever they may live, are
citizens of Berlin, and, therefore, as a free man, I take pride
in the words ‘Ich bin ein Berliner’!”
“Apartheid” stands for a segregation policy that not only separates
races but devalues people with dark skin. A man who paid for his fight
to overcome racism with decades of imprisonment became a symbol
of resistance to this dehumanizing ideology and practice: the later Nobel
Peace Prize winner Nelson Mandela.
DIE WELT, FEbruarY 12, 1990
“Nelson Mandela free again
after 27 years”
There was unrest in Warsaw Pact countries in 1953 in East Germany,
Hungary in 1956, Czechoslovakia in 1968. And each time, it was put
down by force of arms. When workers at the Gdansk Shipyards started
striking in 1980 under the leadership of electrician Lech Walesa, there
was no reason to think that things would turn out any differently. But it
was the beginning of a great geopolitical transformation.
B.Z., August 18, 1980
“Poland
Dramatic escalation! striking
workers now demand: Release all
political prisoners! End
censorship! Abolish perks for
party officials!”
b.Z. aM MITTag, SEpTEMbEr 10, 1931
“Where will gandhi stay?
a holy man approaches an unholy city”
Regarding Dürer’s portrait of his haggard mother, Klaus Staeck once
asked, “Would you rent a room to this woman?” When Mahatma
Gandhi arrived in London to attend the constitutional conference
for India, Ullstein’s B.Z. apparently had similar misgivings. But
sometimes intelligence and staying power are more important than
clothes. This strategy ultimately led to victory in 1947 for the Indian
independence movement.
BERLInER MORgEnPOst, JunE 18, 1953
“uPRIsIng sPREADs tO sOvIEt sEctOR
BLOODy IncIDEnts In BERLIn cLAIM sEvEn
cAsuALtIEs. nOw stAtE Of EMERgEncy In sOvIEt
sEctOR—OPEn uPRIsIng AgAInst thE sOcIALIst
Unity Party of Germany”
Events were triggered by plans to increase work quotas by ten
percent for the same pay. This was too much for construction
workers at Berlin’s Stalinallee. What started as a local protest
on June 17th soon spread to large parts of East Germany. And
the strike for fair wages became a popular uprising for German
freedom and unity which the East German communist party put
down with the aid of Soviet tanks. In the end there were over
6,000 arrests and 500 dead.
HaMburgEr abENDbLaTT, NovEMbEr 7, 1989
“popular anger grows
Mass demonstrations in cities”
It was supposed to be a 40th anniversary
celebration but turned out to be a swan song.
East Germany’s falsified election results
in May 1989 stood out in truly unflattering
contrast to the glasnost and perestroika of
Gorbachev’s Soviet Union. The bold actions
of Poland’s Solidarity movement also set a
forceful example. East Germans gathered
their courage. Long-simmering dissatisfaction
erupted in open protest. In early November
500,000 people at Leipzig’s weekly demon-
stration shouted, “We are the people!”
BERLInER MORgEnPOst, August 29, 1963
“Blacks and whites hand in hand
for equality
Kennedy greets 200,000 demonstrators”
Substandard schools, off-limits park
benches and discrimination in count-
less areas were facts of life for
African-Americans into the 1960s,
especially in the South. One man
who led the protest against this
injustice was Baptist minister Martin
Luther King. “I have a dream,” he
proclaimed to 200,000 listeners in
Washington. A vision of justice. Not
long after, the U.S. Congress passed
laws prohibiting political, legal, and
social discrimination on the basis
of race.
BILD, JunE 6, 1989
“Beijing
now they’re shooting
at everything in sight”
Ideological disputes within the Communist Party, drastic price
increases due to upheavals in the economic system, and the
mounting pressure from lack of freedom were three forces that gave
rise to the student democracy movement in post-Cultural Revolution
China. But government leaders tired of public protests and hunger
strikes; the occupation of Tiananmen Square in Beijing had to end.
Some 2,600 civilians were killed when the protests were crushed.
This photo by Charlie Cole became a symbol of the courage of the
individual.
The twentieth anniversary of the fall of the Berlin Wall was the reason,
and the fiftieth anniversary of the publishing house was the occasion
for the unveiling of Stephan Balkenhol’s sculpture “Balanceakt” in
front of the headquarters of Axel Springer AG. It is a monument to the
difficult path to Germany’s unity in freedom. It’s also a remembrance
of Axel Springer’s commitment to the self-determination of the
German people.
BILD, MAy 26, 2009
“unveiled!
the ‘Wall Walker’ of Berlin”
132 Consolidated
Financial Statements
134 Consolidated
Statement of
Financial Position
136 Consolidated
Statement of
Comprehensive Income
137 Consolidated
Statement of
Cash Flows
138 Consolidated
Statement of
Changes in Equity
139 Segment Report
Notes to the
Consolidated Financial
Statements
140 General information
151 Notes to the consolidated
statement of financial
position
166 Notes to the consolidated
statement of
comprehensive income
171 Notes to the consolidated
statement of cash flows
172 Notes to the segment
report
173 Other disclosures
Auditor’s Report 133
Auditor’s Report
We have audited the consolidated financial state-
ments prepared by the Axel Springer Aktiengesell-
schaft, Berlin, comprising the statement of financial
position, the income statement, the statement of
recognized income and expenses, the statement of
cash flows, the statement of changes in equity, and
the notes to the consolidated financial statements,
together with the combined management report of
the Axel Springer Group and of Axel Springer AG for
the fiscal year from January 1 to December 31, 2009.
The preparation of the consolidated financial
statements and the combined management report of
the Axel Springer Group and of Axel Springer AG in
accordance with IFRSs as adopted by the EU, and
the additional requirements of German commercial
law pursuant to Sec. 315a (1) HGB [“Handels-
gesetzbuch”: “German Commercial Code”] are the
responsibility of the parent company’s management.
Our responsibility is to express an opinion on the
consolidated financial statements and on the
combined management report of the Axel Springer
Group and of Axel Springer AG based on our audit.
We conducted our audit of the consolidated financial
statements in accordance with Sec. 317 HGB and
German generally accepted standards for the audit of
financial statements promulgated by the Institut der
Wirtschaftsprüfer [Institute of Public Auditors in
Germany] (IDW). Those standards require that we
plan and perform the audit such that misstatements
materially affecting the presentation of the net assets,
financial position and results of operations in the
consolidated financial statements in accordance with
the applicable financial reporting framework and in
the combined management report of the Axel
Springer Group and of Axel Springer AG are
detected with reasonable assurance. Knowledge of
the business activities and the economic and legal
environment of the Axel Springer Group and the
expectations as to possible misstatements are taken
into account in the determination of audit
procedures. The effectiveness of the accounting-
related internal control system and the evidence
supporting the disclosures in the consolidated
financial statements and the combined management
report of the Axel Springer Group and of Axel
Springer AG are examined primarily on a test basis
within the framework of the audit. The audit includes
assessing the annual financial statements of those
entities included in consolidation, the determination
of entities to be included in consolidation, the
accounting and consolidation principles used and
significant estimates made by management, as well
as evaluating the overall presentation of the
consolidated financial statements and the combined
management report of the Axel Springer Group and
of Axel Springer AG. We believe that our audit
provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the
consolidated financial statements comply with IFRSs as
adopted by the EU, the additional requirements of
German commercial law pursuant to Sec. 315a (1) HGB
and give a true and fair view of the net assets, financial
position and results of operations of the Axel Springer
Group in accordance with these requirements. The
combined management report of the Axel Springer
Group and of Axel Springer AG is consistent with the
consolidated financial statements and as a whole
provides a suitable view of the Group’s position and
suitably presents the opportunities and risks of future
development.
Berlin, February 25, 2010
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
Plett
Wirtschaftsprüfer
[German Public Auditor]
Glöckner
Wirtschaftsprüfer
[German Public Auditor]
134 Annual Report 2009 Axel Springer AG
Consolidated Statement of Financial Position
€ thousands
ASSETS
Non-current assets
Fixed assets
Intangible assets
Property, plant, and equipment
Investment property
Non-current financial assets
Investments accounted for using the equity method
Other non-current financial assets
Receivables from income taxes
Other assets
Deferred tax assets
Current assets
Inventories
Trade receivables
Receivables due from related parties
Receivables from income taxes
Other assets
Cash and cash equivalents
Assets held for sale
Total assets
*) Adjusted due to the change of the accounting policy for pension obligations.
Note
12/31/2009 12/31/2008* 01/01/2008*
1,874,600
1,715,724
2,245,092
1,666,249
1,655,185
2,186,787
835,438
737,964
704,707
704,752
722,249
756,789
31,704
29,663
27,369
94,355
165,309
697,922
59,702
129,993
639,371
34,653
39,829
35,316
58,551
44,457
46,511
152,249
3,050
16,273
13,032
3,066
8,728
1,059,702
1,093,341
1,579,953
31,900
44,225
37,990
301,947
264,875
269,221
43,987
55,944
70,364
55,582
63,417
37,586
70,292
62,001
110,281
197,259
154,529
198,056
358,301
474,543
830,696
2,934,302
2,809,065
3,825,045
(4)
(5)
(6)
(7)
(11)
(28)
(8)
(9)
(10)
(11)
(31)
(12)
Consolidated Financial Statements 135
Note 12/31/2009 12/31/2008* 01/01/2008*
(13)
1,196,848
1,067,702
1,215,363
1,145,206
1,025,134
1,134,269
51,642
42,568
81,094
966,087
1,041,871
1,504,255
310,415
296,026
294,468
39,327
14,062
20,936
383,801
512,432
930,149
1,536
4,135
1,743
20
519
2,925
58,987
51,331
78,493
167,886
166,257
176,765
771,367
699,492
1,105,427
49,056
47,943
47,971
161,233
155,642
192,417
6,480
11,596
10,988
204,802
183,246
234,525
(14)
(15)
(16)
(17)
(18)
(28)
(14)
(15)
(16)
(17)
22,213
24,498
39,860
54,866
46,843
83,597
272,717
229,724
237,522
0
0
258,547
2,934,302
2,809,065
3,825,045
€ thousands
EQUITY AND LIABILITIES
Equity
Shareholders of Axel Springer AG
Minority interests
Non-current provisions and liabilities
Provisions for pensions
Other provisions
Financial liabilities
Trade payables
Liabilities due to related parties
Other liabilities
Deferred tax liabilities
Current provisions and liabilities
Provisions for pensions
Other provisions
Financial liabilities
Trade payables
Liabilities due to related parties
Liabilities from income taxes
Other liabilities
Liabilities related to assets held for sale
Total equity and liabilities
*) Adjusted due to the change of the accounting policy for pension obligations.
136 Annual Report 2009 Axel Springer AG
Consolidated Statement of
Comprehensive Income
€ thousands
Consolidated Income Statement
Revenues
Other operating income
Change in inventories and internal costs capitalized
Purchased goods and services
Personnel expenses
Depreciation, amortization and impairments
Other operating expenses
Income from investments
Result from investments accounted for using the equity method
Other investment income
Financial result
Income taxes
Net income
Net income attributable to shareholders of Axel Springer AG
Net income attributable to minority interests
Basic earnings per share (in €)
Diluted earnings per share (in €)
€ thousands
Note
(20)
(21)
(22)
(23)
(24)
(25)
(26)
(27)
(28)
2009
2008
2,611,591
2,728,538
70,654
4,112
85,521
5,241
– 886,445
– 945,374
– 791,943
– 722,457
– 92,350
– 112,088
– 705,107
– 697,335
212,141
407,755
– 18,369
– 55,449
230,510
463,204
– 24,980
– 61,547
– 83,840
– 117,187
313,833
571,067
303,481
560,050
10,352
11,017
(29)
(29)
10.20
10.19
18.58
18.54
Consolidated Statement of Recognized Income and Expenses
Note
2009
2008
Net income
Actuarial gains/losses from defined benefit pension obligations
Currency translation differences
Changes in fair value of available-for-sale financial assets
Changes in fair value of derivatives in cash flow hedges
Changes in revaluation surplus
Other income/loss from investments accounted for using the equity method
Other income/loss
Comprehensive income
Comprehensive income attributable to shareholders of Axel Springer AG
Comprehensive income attributable to minority interests
313,833
571,067
– 6,100
1,655
3,882
10,339
6
– 434,169
– 4,503
– 11,334
– 3,086
0
– 4,578
– 12,318
(30)
– 16,606
– 443,600
297,227
127,467
286,824
116,500
10,403
10,967
Consolidated Financial Statements 137
Consolidated Statement of Cash Flows
€ thousands
Net income
Reconciliation of net income to the cash flow from operating activities
Depreciation, amortization, impairments, and write-ups of fixed assets
Result from investments accounted for using the equity method
Dividends received from investments accounted for using the equity method
Result from derecognition of fixed assets
Changes in non-current provisions
Changes in deferred taxes
Other non-cash income and expenses
Changes in trade receivables
Changes in trade payables
Changes in other assets and liabilities
Cash flow from operating activities
Proceeds from disposals of intangible assets, property, plant and equipment
Proceeds from disposals of consolidated subsidiaries and business units less cash and cash equivalents
given up
Proceeds from disposals of other non-current financial assets
Purchases of intangible assets, property, plant, equipment and investment property
Purchases of shares in consolidated subsidiaries and business units less cash and cash equivalents
acquired
Purchases of investments in other non-current financial assets
Cash flow from investing activities
Dividends paid to shareholders of Axel Springer AG
Dividends paid to other shareholders
Equity contributions
Re-issuance/Purchase of treasury shares
Repayments of liabilities under finance leases
Proceeds from other financial liabilities
Repayments of other financial liabilities
Cash flow from financing activities
Cash flow-related changes in cash and cash equivalents
Changes in cash and cash equivalents due to exchange rates
Changes in cash and cash equivalents due to changes in companies included in consolidation
Cash and cash equivalents at beginning of period
Reclassification from held-for-sale assets
Cash and cash equivalents at end of period
€ thousands
Cash flows contained in the cash flow from operating activities
Income taxes paid
Income taxes received
Interest paid
Interest received
Dividends received
Note
2009
2008
313,833
571,067
(32)
87,759
18,369
11,728
114,818
55,449
32,166
– 215,065
– 438,565
39,653
– 22,848
– 5,404
– 12,094
12,118
41,956
270,005
220
8,695
170,004
– 38,941
– 66,210
– 18,729
61
– 17,475
20,793
4,802
– 50,453
– 27,548
265,115
4,266
5,960
542,330
– 46,722
– 162,740
– 42,457
(32)
55,039
300,637
– 130,604
– 122,400
– 10,913
0
7,993
– 74
98,076
– 6,053
6,900
– 73,532
– 193
151,579
– 248,359
– 568,493
– 283,881
– 612,192
41,163
– 46,440
– 196
1,764
779
319
154,529
198,056
0
1,815
(31)
197,259
154,529
2009
2008
– 117,393
– 150,051
11,941
– 27,470
10,548
31,959
48,971
– 27,096
19,049
57,900
138 Annual Report 2009 Axel Springer AG
Consolidated Statement of
Changes in Equity
€ thousands
Accumulated other comprehensive income
Subscribed
capital
Additional
paid-in
capital
Accumu-
lated
retained
earnings
Treasury
shares
Currency
translation
Changes in fair value
Available-
for-sale
financial
assets
Deriva-
tives in
cash flow
hedges
Share-
holders of
Axel
Springer
AG
Other
equity*
Minority
interests*
Equity
Balance at 01/01/2008
98,940
39,002
698,610
– 133,762
1,144
434,170
195
– 7,566 1,130,733
81,095
1,211,828
98,940
39,002
698,610
– 133,762
1,144
434,170
195
– 4,030 1,134,269
81,094
1,215,363
3,536
3,536
– 1
3,535
560,050
– 122,400
– 73,532
10,235
– 434,166
– 11,181
– 8,438
116,500
10,967
127,467
– 122,400
– 6,053
– 128,453
– 73,532
– 73,532
0
– 16,037
– 16,037
– 30,997
– 27,403
– 58,400
Purchase of minority interests
– 30,997
Other changes
1,277
– 2,792
2,809
1,294
0
1,294
Balance at 12/31/2008
98,940
40,279 1,102,471
– 207,294
11,379
303,481
– 130,604
1,618
4
4
– 10,986
– 9,659 1,025,134
42,568
1,067,702
– 4,489
– 13,790
286,824
10,403
297,227
– 130,604
– 10,914
– 141,518
1,391
6,607
7,998
7,998
Change in accounting policies
Balance at 01/01/2008
adjusted
Comprehensive income
Dividends paid
Purchase of treasury shares
Change in consolidated
companies
Comprehensive income
Dividends paid
Re-issuance of treasury
shares
Change in consolidated
companies
Purchase and disposal of
minority interests
– 919
– 38,506
– 919
36,332
35,413
– 38,506
– 26,493
– 64,999
– 4,721
– 254
– 4,975
Other changes
2,824
– 7,545
Balance at 12/31/2009
98,940
43,103 1,229,769
– 200,687
12,997
8
– 15,475
– 23,449 1,145,206
51,642
1,196,848
*) Adjusted due to the change of the accounting policy for pension obligations.
Segment Report
Consolidated Financial Statements 139
Operating segments
€ thousands
Newspapers National Magazines National
Print International
Digital Media
Services/Holding
Consolidated totals
2009
2008
2009
2008
2009
2008
2009
2008
2009
2008
2009
2008
External revenues
1,213,683
1,277,584
517,793
564,068
311,665
409,750
470,378
378,181
98,071
98,955
2,611,591
2,728,538
Internal revenues
8,617
16,967
4,323
6,940
14,035
10,101
22,840
32,186
305,398
319,418
Segment revenues
1,222,300
1,294,551
522,116
571,008
325,700
419,851
493,218
410,367
403,470
418,373
EBITDA 1)
243,766
348,895
54,954
88,817
12,257
27,756
43,192
20,931
– 20,466
– 223
333,705
486,175
Thereof income from
investments
Thereof accounted for
using the equity method
Depreciation, amortization,
impairments and write-ups
(except from purchase
price allocations)
Impairment losses in
goodwill
EBIT 1)
Effects of purchase price
allocations
4,807
19,894
1,949
457
2,101
7,830
10,096
903
4,071
2,685
23,025
31,769
0
14,636
1,335
790
1,869
4,866
1,987
– 8,860
– 2,785
– 6,604
2,406
4,828
– 2,775
– 3,213
– 3,541
– 3,925
– 6,667
– 6,427
– 9,262
– 5,002
– 42,514
– 45,490
– 64,760
– 64,057
0
0
0
– 2,107
0
0
0
0
0
0
0
– 2,107
240,991
345,682
51,413
82,785
5,591
21,329
33,930
15,929
– 62,979
– 45,713
268,945
420,011
0
0
– 65
– 27,028
– 3,928
– 4,172
– 22,628
– 15,201
– 72
– 72
– 26,692
– 46,473
Non-recurring effects
214,357
– 1,616
– 6,318
0
464
0
– 10,750
437,393
– 17,353
– 59,514
180,400
376,263
Segment earnings before
interest and taxes
Financial result
Income taxes
Net income
455,348
344,066
45,030
55,757
2,127
17,157
552
438,121
– 80,404
– 105,299
422,653
749,801
– 24,980
– 61,547
– 83,840
– 117,187
313,833
571,067
Segment assets
279,379
254,596
75,513
89,398
294,447
287,617
1,101,579
994,944
817,685
879,555
2,568,604
2,506,110
1) Adjusted for non-recurring effects and effects of purchase price allocations.
Geographical information
€ thousands
External revenues
Non-current segment assets
Germany
Other countries
Consolidated totals
2009
2008
2009
2008
2009
2008
2,063,975
2,131,690
547,616
596,848
2,611,591
2,728,538
1,271,669
1,280,454
300,225
209,422
1,571,894
1,489,876
140 Annual Report 2009 Axel Springer AG
Notes to the Consolidated Financial Statements
General information
(1) Basic principles
The Axel Springer Aktiengesellschaft (“Axel Springer
AG”) is an exchange-listed stock corporation with its
registered head office in Berlin/Germany. The principal
activities of Axel Springer AG and its subsidiaries (“Axel
Springer Group”, “Axel Springer” or the “Group”) are
described in note (33a).
On February 23, 2010, the Management Board of Axel
Springer AG authorized the consolidated financial
statements for fiscal year 2009 and presented them to
the Supervisory Board for approval. The consolidated
financial statements were prepared by application of
Section 315a HGB in accordance with the International
Financial Reporting Standards (IFRS) of the International
Accounting Standards Board (IASB) and the
interpretations of the International Financial Reporting
Interpretations Committee (IFRIC) approved by the
IASB, in effect and recognized by the European Union
(EU) at the balance sheet date. The reporting currency
is the Euro (€); unless otherwise indicated, all figures
are stated in thousands (€ thousands).
The consolidated financial statements and
consolidated management report will be filed with the
Electronic Federal Gazette in Germany. Axel Springer
AG is kept on file with the Commercial Register of the
Berlin-Charlottenburg Local Court under the No. 4998.
(2) Consolidation
(a) Consolidation principles
The consolidated financial statements include Axel
Springer AG and its subsidiaries. Subsidiaries are
entities in which Axel Springer AG is able to control,
directly or indirectly, the financial and operating policies.
The consideration transferred in business
combinations is offset against the pro-rated fair value
of the acquired assets and liabilities at the acquisition
date. Any remaining positive difference is capitalized as
goodwill. Negative differences are immediately
recognized as income. The date of acquisition is the
date when the ability to control the net assets and the
financial and operating activities of the acquired
business passes to the Axel Springer Group. We offset
differences arising from sales and purchases of
minority interests within equity.
Associated companies are included in the
consolidated financial statements by application of the
equity method. Associated companies are defined as
companies in which the Axel Springer Group can exert
significant influence over the financial and operating
policies of the company. With regard to calculating the
goodwill and the proportional fair value of the assets
and liabilities, the accounting principles applied to
business combinations apply here as well. Goodwill is
included in the amortized carrying amount of the
investment in the associated company. The IFRS
financial statements of these companies as at the Axel
Springer Group’s balance sheet date serve as the
basis for applying the equity method. Losses from
associated companies that exceed the carrying
amount of the investment, or any other long-term
receivables related to the financing of these
companies, are not recognized, unless the Axel
Springer Group is bound by additional contribution
requirements. Intercompany profits and losses are
eliminated. The carrying amounts of investments are
tested for impairment; if impairments exist, they are
written down to the lower recoverable amount.
Consolidated Financial Statements 141
(b) Companies included in the consolidated
financial statements
Companies included in the consolidated financial
statements broke down as follows:
Fully consolidated companies
Germany
Other countries
Fully consolidated special
purpose entities
Germany
Investments accounted for
using the equity method
Germany
Other countries
12/31/2009 12/31/2008
53
76
3
5
2
52
38
3
7
2
Special purpose entities consist of closed property
funds of which, in substance, the risks and rewards
are attributable to Axel Springer. Consolidated
companies are listed in note (44). The list of
shareholdings of Axel Springer AG and the Group is to
be filed with the Electronic Federal Gazette.
The following changes occurred in 2009:
In the context of the acquisition of StepStone ASA,
Oslo/Norway, we fully consolidated three German
companies and 39 companies located outside
Germany of the StepStone ASA Group. The shares
already held in StepStone ASA and in StepStone
Deutschland AG, Düsseldorf, were no longer
accounted for using the equity method as of
September 1, 2009.
In addition, we have acquired the majority of the
shares in Digital Window Ltd., London/Great Britain,
through our subsidiary DW-Holding GmbH, Berlin,
which was first consolidated in the reporting year.
The remaining change in the fully consolidated
companies resulted from the initial consolidation of AS
Nyomda Kft, Kecskemét/Hungary, which is of
subordinate importance to the Axel Springer Group. In
Zurich/Switzerland, moreover, TR7 AG was merged
into Axel Springer Schweiz AG, Handelszeitung
Fachverlag AG was merged into Handelszeitung und
Finanzrundschau AG and usgang.ch GmbH was
merged into Avivum AG.
In September, three German investments in the T&M
Group were sold.
The shares in Myby GmbH & Co. KG, Düsseldorf, were
no longer accounted for using the equity method due
to the petition filed in June 2009 for commencement of
insolvency proceedings.
In the reporting year, we acquired a 49 % share of
INFOR BIZNES Sp. z o.o., Warsaw/Poland. The
investment was accounted for using the equity method.
(c) Acquisitions and divestitures
At the beginning of September 2009, Axel Springer AG
increased its share in StepStone ASA, Oslo/Norway,
from 33.3 % to 52.8 % and thus assumed control.
Costs of purchase of € 26,557 thousand were
incurred for the increase to 52.8 %, as well as
incidental acquisition costs of € 2,886 thousand. The
acquisition of 33.3 % in StepStone ASA in 2008
resulted in a purchase price of € 34,886 thousand.
Using the mandatory takeover offer for the remaining
outstanding shares as well as additional share
purchases and the squeeze-out that was initiated, we
increased our share to 100.0 % by the balance sheet
date for total costs of € 65,410 thousand.
142 Annual Report 2009 Axel Springer AG
The cost of purchase of the majority acquisition to
52.8 % was allocated to the acquired assets and
liabilities as follows:
€ thousands
Carrying
amount
before
acquisition
Adjust-
ment
amount
Carrying
amount
after
acquisition
Other intangible assets
8,514
68,138
76,652
Window Ltd., London/Great Britain, at the beginning of
October 2009. Due to the call and put options that can
be exercised in subsequent years for the remaining
49.9 % of the shares, only the minority interests
allocable to the minority shareholder of DW-Holding
GmbH were recognized. The purchase price amounted
to € 21,735 thousand plus incidental acquisition costs
of € 487 thousand and included contingent
consideration in the amount of € 11,586 thousand.
Property, plant, and
equipment
Other non-current assets
4,429
1,641
4,429
1,641
The cost of purchase was allocated to the acquired
assets and liabilities as follows:
Current assets
21,161
742
21,903
Cash and cash equivalents
31,937
31,937
Deferred tax assets
10,587
– 4,077
6,510
Provisions and liabilities
– 54,998
7,088
– 47,910
€ thousands
Carrying
amount
before
acquisition
Adjust-
ment
amount
Carrying
amount
after
acquisition
Deferred tax liabilities
0 – 25,048
– 25,048
Other intangible assets
41
10,921
10,962
Net assets
23,271
46,843
70,114
Minority interests
Acquisition cost
Revaluation surplus
Goodwill
33,115
64,329
3,086
24,243
Of the other intangible assets acquired, intangible
assets with carrying amounts of € 41,075 thousand
have indefinite useful lives. The goodwill is above all
attributable to inseparable values such as employee
expertise and expected synergy effects from the
integration, and was allocated to the Digital Media
segment.
Since initial consolidation, the StepStone Group has
contributed to consolidated revenues in the amount of
€ 29,351 thousand and to consolidated net income in
the amount of € – 12,651 thousand. If the acquisition
had already occurred on January 1, 2009, the consoli-
dated revenues would have changed by € 95,923
thousand, and the consolidated net income by
€ – 17,240 thousand; in addition, investment income of
€ – 2,289 thousand would not have been recorded.
DW-Holding GmbH, Berlin, in which our wholly-owned
subsidiary Axel Springer Venture GmbH holds 52.5 %
of the shares, acquired 50.1 % of the shares in Digital
Property, plant, and
equipment
Trade receivables
Other current assets
Cash and cash equivalents
Deferred tax assets
366
7,213
396
6,905
2
366
7,213
396
6,905
2
Provisions and liabilities
– 7,714
– 7,714
Deferred tax liabilities
0
– 3,058
– 3,058
Net assets
7,211
7,863
15,074
Minority interests
Acquisition cost
Goodwill
7,160
22,222
14,308
Of the other intangible assets acquired, no assets have
indefinite useful lives. The goodwill is above all attributable
to inseparable values such as employee expertise and
expected synergy effects from the integration, and was
allocated to the Digital Media segment.
Since initial consolidation, Digital Window Ltd. has
contributed to consolidated revenues in the amount of
€ 16,241 thousand and to consolidated net income in
the amount of € 943 thousand. If the acquisition had
already occurred on January 1, 2009, the consolidated
revenues would have changed by € 47,980 thousand,
and the consolidated net income by € 1,021 thousand.
Consolidated Financial Statements 143
The sale of a number of investments in regional
newspapers and Elmshorner Nachrichten took place
in March, April, and August 2009 following approval
under anti-trust law. € 173,975 thousand of the
purchase price in the amount of € 323,975 thousand
was paid at the beginning of the second quarter and
in the third quarter. The remainder of the purchase
price was deferred and will be payable in installments
in the period from 2011 to 2016. The carrying
amounts of investments and financial receivables
assigned to the Newspapers National segment in the
amount of € 109,175 thousand were disposed of
from the assets held for sale. A gain on disposal
totaling € 214,357 thousand was recognized. In this
context, tax expenses were incurred in the amount of
€ 21,780 thousand.
Additional acquisitions and divestitures carried out in
2009 collectively had no material effects on the net
assets, financial position, and results of operations of
the Axel Springer Group.
In 2008, we acquired various companies and
businesses, which collectively had no material effects
on the net assets, financial position, and results of
operations of the Axel Springer Group.
Items of the income statement have been translated at
the weighted average exchange rate for the year.
Equity components of the subsidiaries have been
translated at the historical exchange rate at the date of
origination. The foreign exchange differences resulting
from the translation have been recognized as currency
translation adjustments within accumulated other
comprehensive income and/or minority interests.
The exchange rates to the euro of foreign currencies
that are significant for Axel Springer Group underwent
the following changes in the past year:
Unit of foreign
currency per
one euro
Polish zloty
Swiss franc
Average exchange
rate
Exchange rate on
balance sheet date
2009
4.34
1.51
2008 12/31/2009 12/31/2008
3.52
1.59
4.14
1.49
4.17
1.49
Hungarian forint
280.55
250.12
272.48
265.64
British pound
0.89
0.80
0.90
0.97
Norwegian
krone
8.75
8.24
8.32
9.91
(d) Translation of separate financial statements
valuation methods
(3) Explanation of significant accounting and
denominated in foreign currency
The assets and liabilities of subsidiaries for which the
functional currency is not the euro have been
translated at the exchange rate in effect on the balance
sheet date. The goodwill and fair value adjustments of
assets and liabilities related to the acquisition of
companies outside the European Monetary Union are
assigned to the acquired company and accordingly
translated at the exchange rate in effect on the balance
sheet date.
(a) Basic principles
The accounting and valuation principles applied
uniformly across the Axel Springer Group in fiscal year
2009 are basically the same as those applied in the
prior year with the exception of the following changes.
We have implemented the regulations of the new IAS 1
(revised 2007), “Presentation of Financial Statements”.
Changes in equity resulting from transactions with
owners in their capacity as equity providers are
presented separately from other equity changes. Our
statement of changes in equity presents all details
concerning transactions with owners, while all other
equity changes are presented in a single line item. In
addition, we present total comprehensive income,
which includes all components of income, in a separate
statement of recognized income and expenses.
144 Annual Report 2009 Axel Springer AG
Since January 1, 2009, we have changed the
accounting for defined benefit pension plans from the
corridor method to immediate recognition of all
actuarial gains and losses with no effect on income.
The complete disclosure of the employer pension
plans in the balance sheet leads to an improved
presentation of the financial situation. The prior-year
amounts at December 31, 2008, and January 1, 2008,
were adjusted as follows: reduction in the long-term
accruals for pensions by € 10,941 thousand
(01/01/2008: € 5,371 thousand) with no effect on
income, as well as a reduction in deferred tax assets
by € 3,570 thousand (01/01/2008: € 1,894 thousand)
with no effect on income. The effects were offset
against other equity within accumulated other
comprehensive income. The change of the accounting
method did not result in any effects on the income
statements of the prior years.
For information on the changes in accounting and
valuation methods resulting from new or revised IFRSs
and IFRIC Interpretations, please refer to note (3r).
(b) Recognition of income and expenses
The Axel Springer Group mainly generates circulation
revenues from sales of newspapers and magazines
and advertising revenues. Revenues are recognized at
the time when the significant risks of ownership have
passed to the buyer / the services have been
rendered, the amount of revenue can be reliably
measured, and it is sufficiently probable that economic
benefits will flow to the enterprise. Revenues are stated
net of any discounts allowed.
Circulation revenues encompass the sales of
newspapers and magazines to retailers, wholesalers
and subscribers. Revenue is not recognized for that
portion of products sold, which can be expected, on
the basis of historical experience, to be returned.
The advertising revenues encompass revenues from
sales of advertising spaces in the published
newspapers and magazines and the revenues
generated in the categories of display, affiliate
marketing, and search in the Digital Media segment.
If significant risks and rewards of business activities do
not lie with the Axel Springer Group or the income is
collected in the interest of third parties, only the
corresponding commission income or proportion of
revenue accruing to the Axel Springer Group are
recognized as revenues.
Revenues from barter transactions are recognized if
the services exchanged are dissimilar and the amount
of revenue can be measured reliably. Revenues are
measured at the fair value of services received. If the
fair value of the service received under barter
transactions cannot be measured reliably, the fair value
is determined on the basis of the service rendered.
Other income is recognized when the future inflow of
economic benefits from the transaction can be
measured reliably and was received by the company
during the reporting period.
Operating expenses are recognized either when the
corresponding goods or services are sold or rendered,
or at the time of their origination.
Interest expenses and income are recognized on an
accrual basis in the period of their occurrence. Interest
expenses incurred in connection with the acquisition
and production of qualified assets are capitalized as
assets in the financial statements. Dividend income is
recognized when the legal entitlement is constituted.
Intangible assets
(c)
Internally generated intangible assets are measured as
the sum of costs incurred in the development phase
from the time when the technical and economic
feasibility has been demonstrated until the time when
the intangible asset has been completed. The
capitalized production costs include all costs that are
directly or indirectly allocable to the development
phase. Purchased intangible assets are measured at
cost. Internally generated and purchased intangible
assets that have a determinable useful life are
Consolidated Financial Statements 145
amortized over their expected useful lives using the
straight-line method, starting from the time when they
become available for use by the enterprise, as follows:
For depreciation purposes, the following useful lives
are applied:
Software
Licenses
Supply rights
Internet platform
Customer relationships
Useful life
in years
Buildings
3 – 8
3 – 10
3 – 6
3 – 8
3 – 16
Leasehold improvements
Printing machines
Editing systems
Other operational and business equipment
Useful life
in years
30 – 50
5 – 15
15 – 20
3 – 7
3 – 14
Intangible assets with an indefinite useful life, which
include goodwill, title rights, and brand rights, are not
amortized. At present, the use of these assets by the
company is not limited by any economic or legal
restrictions.
(d) Property, plant, and equipment
Property, plant, and equipment are measured at cost
and depreciated over their expected useful lives using
the straight-line method. Any gains or losses on the
disposal of property, plant, and equipment are
recognized as other operating income or expenses.
Leased assets over which Axel Springer retains
beneficial ownership are recognized as fixed assets
and measured at the present value of the minimum
future lease payments or the lower fair value of the
leased asset and depreciated by the straight-line
method. The present value of the payment obligations
associated with the minimum future lease payments is
recognized as a liability.
When it is reasonably certain that ownership of the
assets leased under finance lease will pass to Axel
Springer at the end of the lease period, such assets
are depreciated over their useful lives.
Capital investment subsidies and bonuses granted by
the government are recognized when it is reasonably
certain that the subsidies will be granted and that the
Group will fulfill the related terms and conditions. The
bonuses and subsidies granted for the acquisition or
construction of long-term assets are recognized as
deferred income and presented among other liabilities.
In subsequent periods, the deferred income item is
released and recognized as income over the useful life
of the corresponding assets.
Investment property
(e)
Investment property that the Axel Springer Group
intends to lease out to third parties is measured at
amortized cost. Such property is depreciated over a
useful life of 50 years using the straight-line method.
146 Annual Report 2009 Axel Springer AG
Estimation uncertainties arise in the following
assumptions applied in calculating the value-in-use
amounts of the reporting units:
Medium-term planning: The medium-term planning is
determined on the basis of past historical values, and
business segment specific expectations about future
market growth. It is assumed that cash flows in the
electronic media sector will usually exhibit higher
growth rates than in the print sector.
Discount rates: The discount rates reflect the current
market estimates of the country-specific risks
attributable to each reporting unit. The discount rate
was estimated on the basis of the average weighted
capital costs of the sector in question.
Growth rates: The growth rates were determined on
the basis of published market research reports for the
sectors in question. In estimating the long-term growth
rates, due consideration was given to the
compensatory effects between the different business
lines, based on the adopted strategy of the Group.
Impairment tests of the goodwill resulting from
preliminary purchase price allocations are conducted
only when certain events have occurred.
Impairment losses are reversed when the recoverable
amount exceeds the carrying amount of the asset. The
reversal is limited to the amount which would have
resulted if previous impairment losses had not been
recognized. A recognized impairment loss in goodwill
is never reversed.
(f) Recognition of impairment losses in
intangible assets and in property, plant, and
equipment
Impairment losses are recognized in intangible assets
and in property, plant, and equipment, when as a
result of certain events or changed circumstances the
carrying amount of the asset exceeds its recoverable
amount (fair value less the costs to sell or the value in
use). If it is not possible to determine the recoverable
amount of an individual asset, the recoverable amount
for the next-higher group of assets is applied.
Goodwill and intangibles with indefinite useful life is
tested once annually for impairment. In order to carry
out the impairment tests, these assets are assigned to
those cash generating units or those groups of cash
generating units (i.e., each “reporting unit”) that can be
expected to profit from the synergies of the business
combination. These reporting units represent the
lowest level at which these assets are monitored for
management purposes. They generally correspond to
individual titles and digital media of the Axel Springer
Group. In the case of integrated business models,
individual titles and media are combined into a single
reporting unit.
The impairment test is conducted by determining the
value in use of the reporting units, determined as the
sum of the discounted estimated future cash flows,
which are derived from the company’s Medium-Term
Plan. The planning horizon for the medium-term
planning is five years. The cash flows to be received
after this five-year period are extrapolated on the
assumption of a growth rate of 1.5 % (PY: 1.5 %),
which does not exceed the assumed average market
or industry growth rate of the respective reporting
units. The discount rates are calculated on the basis of
the weighted average capital costs of the Group,
taking country-specific considerations into account.
The discount rates range from 6.2 % to 12.3 % (PY:
from 6.2 % to 12.8 %) after taxes and from 7.9 % to
15.4 % (PY: from 7.9 % to 16.0 %) before taxes.
Consolidated Financial Statements 147
(g) Financial assets and liabilities
Financial assets are mainly composed of cash and
cash equivalents, trade receivables, receivables due
from related parties, loans, investments, securities, and
financial derivatives with positive market values.
Financial liabilities are mainly composed of trade
payables, liabilities due to related parties, liabilities due
to banks, contingent consideration in business
combinations, and financial derivatives with negative
market values.
The initial recognition and derecognition of financial
assets and liabilities coincide with the settlement dates
of customary market purchases and sales.
If reliably measurable, fair values of financial assets and
liabilities are determined on the basis of appropriate
market prices or valuation methods. If valuation
methods are applied, the fair values are determined as
the sum of the discounted expected cash flows based
on reference interest rates in effect on the balance
sheet date. After initial recognition non-derivative
financial liabilities are measured at amortized cost by
application of the effective interest method.
A financial asset is derecognized when the contractual
rights to the cash flows from the financial asset expire or
when the Group transfers the contractual rights to
receive the cash flows to third parties, or assumes a
contractual obligation to pay the cash flows immediately
to a third party, under which the risks and rewards or
the power of control were transferred. A financial liability
is derecognized when the obligation underlying the
liability is settled or annulled, or has expired.
Investments and securities
Investments that have not been consolidated or
accounted for using the equity method in the
consolidated financial statements are measured at fair
value if it can be determined reliably on the basis of
stock exchange or market prices and generally
accepted valuation methods, respectively. Otherwise,
they are measured at amortized cost. The valuation
methods employed include especially the discounted
cash flow method (DCF method) based on the
expected investment income. However, the income is
considered to be not reliably measurable in those
cases when sufficiently detailed information is not
available, when the fungibility/comparability of the
investments in such companies are highly restricted,
when the Axel Springer Group has no influence on the
dividend policies by virtue of its status as a minority
shareholder, or when the dividend payments do not
regularly occur in the same or subsequent fiscal year.
Any unrealized gains or losses resulting from the
changes in fair value of the financial assets and
liabilities, considering resulting tax effects, are
recognized in accumulated other comprehensive
income. Changes in fair value are not recognized in
income until the corresponding non-current financial
assets are sold or an impairment loss is recognized.
The carrying amounts of investments and securities
are reviewed at every balance sheet date to determine
whether there are objective indications of an
impairment. If an impairment is found to exist, an
impairment loss is recognized and charged to income.
Loans, receivables, and other financial assets
Upon initial recognition, loans, receivables, and other
financial assets are measured at fair value plus
transaction costs. In subsequent periods, they are
measured at amortized cost, after deduction of any
write-downs, using the effective interest method. A
write-down is taken when objective indications suggest
that the receivable may not be fully collectible. Such an
indication might be the insolvency or other
considerable financial problems of the debtor, for
example. The amount of the write-down is measured
as the difference between the carrying amount of the
receivable and the present value of the estimated
future cash flows from this receivable, discounted by
application of the effective interest rate. Write-downs
are charged against income both in the form of an
account for allowances on doubtful accounts and by
means of direct write-downs. The account for
allowances on doubtful accounts is used, in particular,
for allowances on doubtful trade receivables and
receivables due from related parties. If in subsequent
periods the fair value has objectively risen, the write-
downs are reversed and recognized in income in the
appropriate amounts.
148 Annual Report 2009 Axel Springer AG
Cash and cash equivalents
The cash and cash equivalents consist of cash (cash in
banks, cash on hand, and checks) and marketable
securities. These items are measured at amortized cost.
Contingent consideration
Contingent consideration related to options and earn-
out agreements in connection with company
transactions in which the Axel Springer Group acquires
control over the companies in question is measured at
its present value, provided that the acquisition costs
are probable and can be measured reliably. The
discount rates are determined on the basis of the
interest rates charged on the Group’s borrowings.
Financial derivatives
Financial derivatives are utilized exclusively to hedge
against currency and interest rate risks that have an
influence on future cash flows. If the conditions for the
application of hedge accounting are met, the effective
portion of the fair value changes, including the tax
effects, is recognized directly in equity as accumulated
other comprehensive income. Any ineffective portions
are recognized immediately in income. The amounts
recognized in accumulated other comprehensive
income are recycled when the underlying transaction is
recognized on the balance sheet or income statement.
The changes in the fair value of derivatives that do not
meet the conditions for the application of hedge
accounting, despite their economic hedging effect, are
measured at fair value through profit and loss.
Inventories
(h)
Inventories are measured at cost. Purchase costs are
determined on the basis of a weighted average value.
Production costs include all costs directly related to
the units of production and production-related
overhead costs. Inventories are measured at the
balance sheet date at the lower of the purchase or
production cost and the net realizable value. The net
realizable value is the estimated selling price less
estimated costs to be incurred until the sale. The net
realizable value of goods and services in progress is
calculated as the net realizable value of finished goods
and services less remaining costs of completion.
Impairments are reversed whenever reasons justifying
an earlier write-down no longer exist.
(i) Assets held for sale
Assets are classified as held-for-sale when their
disposal has been initiated. The non-current assets
held for sale are measured at the lower of the carrying
amount or the fair value less costs to sell.
(j) Pension provisions
The provisions for pension obligations under defined
benefit plans are calculated using the projected unit
credit method under which future changes in
compensation and benefits are taken into account.
The following parameters were applied in the 2009 and
2008 fiscal years:
Information in %
Discount rate
2009
2008
3.0 / 5.3
3.0 / 5.8
Expected return on plan assets
3.25 – 3.5
3.25 – 3.5
Expected return on
reimbursement rights
Salary trend
Pension trend
5.3
5.8
1.5 – 2.0
1.5 – 2.5
0.25 – 2.0 0.25 – 2.25
The expected life spans are determined with reference
to the country-specific recognized actuarial tables. The
present value of the defined benefit obligation is
determined by discounting the estimated future cash
outflows. The discount rate applied for this purpose is
determined with reference to high-quality corporate
bonds that match the underlying pension obligations
with respect to currency and maturity.
Actuarial gains and losses resulting from changes in
actuarial parameters are immediately offset against
accumulated other comprehensive income without
affecting net income.
(k) Other provisions and accrued liabilities
Other provisions have been formed to account for all
discernible legal and constructive obligations to third
parties, provided that the settlement of the obligation is
probable and the amount of the obligation can be
reliably estimated. The amount of each provision
corresponds to the expected settlement amount. In
the case of long-term provisions, the expected
settlement amount is discounted to the present value
at the balance sheet date by application of appropriate
Consolidated Financial Statements 149
market rates of interest. Provisions are recognized for
restructuring expenses only when the intended
measures have been sufficiently concretized and
announced on or before the balance sheet date.
(l) Deferred taxes
Deferred taxes are recognized to account for the future
tax effects of temporary differences between the tax
bases of assets and liabilities and the carrying amounts
of those assets and liabilities in the consolidated
financial statements, and for interest and tax loss
carry-forwards. Deferred taxes are measured on the
basis of the tax laws already enacted for those fiscal
years in which it is probable that the differences will
reverse or the tax loss carry-forwards can be utilized.
Deferred tax assets are recognized for temporary
differences or interest and tax loss carry-forwards only
when the ability to utilize them in the near future
appears to be reasonably certain. Deferred taxes are
recognized for temporary differences resulting from the
fair value measurement of assets and liabilities
obtained through business combinations. Deferred
taxes are recognized for temporary differences relating
to goodwill only when the goodwill can be utilized for
tax purposes. Deferred tax assets and liabilities of tax
groups are netted if they are based on the same kind
of income taxes; otherwise, they are netted only if the
deferred taxes are based on the income taxes
imposed by the same tax authority and only when
current taxes can be netted as well.
(m) Treasury shares
Treasury shares are measured at cost and are
charged directly to equity. The treasury shares are
presented in a separate line item of the consolidated
statement of changes in equity.
(n) Share-based payment programs
As part of performance-based remuneration
programs, Axel Springer Group grants equity-settled
and cash-settled share-based payment programs.
The compensation components to be recognized as
expenses over the vesting period are measured as the
fair value of the options granted at the time when they
were granted (in case of equity-settled programs) or
the fair value of the options granted at the balance
sheet date (in case of cash-settled programs). The fair
values are determined on the basis of the Black-
Scholes model. An increase corresponding to the
same amount is reflected in the additional paid-in
capital (in the case of equity-settled programs) or is
recognized as provisions/liabilities (in the case of cash-
settled programs).
(o) Liabilities related to assets held for sale
The liabilities and provisions of discontinued operations
and other disposal groups are summarized under this
balance sheet item.
(p) Transactions in foreign currencies
Purchases and sales in foreign currencies are
translated at the exchange rate on the date of the
transaction. Assets and liabilities in foreign currencies
are translated into the functional currency at the
exchange rate on the balance sheet date. Any foreign
exchange gains or losses resulting from such
translations are recognized in income.
(q) Use of estimates
The preparation of the consolidated financial
statements requires estimates and assumptions that
have an influence on the presentation of assets and
liabilities, the disclosure of contingent liabilities at the
balance sheet date, and the presentation of income
and expenses. Significant estimates and assumptions
relate in particular to allowances for doubtful
receivables, the actuarial parameters used to measure
pension provisions, product return rates, medium-term
planning, discount rates and growth rates for the
valuation of goodwill and intangibles with an indefinite
useful life, contingent considerations in business
combinations, and the ability to utilize deferred tax
assets in the future. Information concerning the carrying
amounts determined with the use of estimates can be
found in the comments on the specific line items.
150 Annual Report 2009 Axel Springer AG
(r) New accounting standards
The following IFRSs relevant for Axel Springer were
applied for the first time in the fiscal year:
IAS 1 “Presentation of Financial Statements”: Starting
January 1, 2009, we have implemented the amended
version of the new IAS 1 published in September 2007
(revised 2007) for the presentation and structure of the
financial statements (cf. note (3a)). The amendments
affected the presentation of the consolidated financial
statements, but did not result in any effects on the net
assets, financial position, and operating results.
IFRS 7 “Financial Instruments: Disclosures”: In March
2009, the IASB published amendments to IFRS 7 with
the title “Improving Disclosures about Financial
Instruments.” The amendments provide for expanded
disclosures on the measurement of financial
instruments at fair value and on liquidity risks. These
changes are required to be applied for fiscal years that
begin on or after January 1, 2009. The amendments
did not have a significant effect on the notes to the
consolidated financial statements.
The following IFRSs relevant for Axel Springer have
already been published, but not yet applied.
In April 2009, the second improvement to IFRSs
standard was published by the IASB, amending a total
of ten standards and two interpretations. A large
number of the amendments must be applied for fiscal
years that begin on or after January 1, 2010. These
amendments have not yet been incorporated into
European law. They have no significant effects on net
assets, financial position, and operating results.
IFRS 3 “Business Combinations” and IAS 27
“Consolidated and Separate Financial Statements”:
The IASB published revised versions of the IFRS 3 and
IAS 27 in January 2008. Incorporation into EU law took
place during the reporting year. The new regulations
must be applied prospectively for the first time in fiscal
years that begin on or after July 1, 2009. The
amendments affect the recognized amount of goodwill,
the measurement of minority interests, the accounting
for step acquisitions, and the treatment of contingent
considerations and incidental acquisition costs. Due to
the changes to IAS 27, changes in the amount of
equity held in a subsidiary (without loss of control)
must now be accounted for exclusively as an equity
transaction. Moreover, the regulations applicable to the
distribution of losses to non-controlling interests were
changed, as were the regulations applicable to the
accounting treatment of transactions that lead to a loss
of control. The changes will have an effect on future
company transactions, particularly on the results of the
reporting period in which an acquisition occurred, and
on future results.
IFRS 9 “Financial Instruments”: This standard was
published by IASB in November 2009 and represents
the first of a total of three phases in the complete
replacement of IAS 39. Upon the conclusion of one
phase, the corresponding content is taken from IAS 39
and inserted into IFRS 9. The first phase leads to a
fundamental change in the regulations on the
categorization and measurement of financial assets
and liabilities, and concentrates in its content
exclusively on financial assets. IFRIC 9 is required to be
applied to fiscal years that begin on or after January 1,
2013. These amendments have not yet been
incorporated into European law. The application of the
new standard will lead to changes in the presentation
and recognition of financial assets and liabilities.
Consolidated Financial Statements 151
Notes to the consolidated statement of financial position
(4)
Intangible assets
The changes in intangible assets were as follows:
€ thousands
Acquisition or production cost
Balance at January 1, 2008
Initial consolidation
Currency effects
Additions
Disposals
Transfers
Balance at December 31, 2008
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Balance at December 31, 2009
Amortization and impairments
Balance at January 1, 2008
Initial consolidation
Currency effects
Additions
Disposals
Write-ups
Balance at December 31, 2008
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Write-ups
Balance at December 31, 2009
Carrying amounts
At December 31, 2009
At December 31, 2008
Purchased
rights and
licenses
Internally
generated
rights
Goodwill
Total
436,916
6,315
8,802
31,243
– 14,098
514
469,692
77,250
– 2,745
– 502
17,387
– 62,054
143
499,171
111,781
403
698
55,746
– 1,776
– 285
166,567
116
– 1,622
– 447
35,463
– 55,605
337
– 261
144,548
25,153
667
31
1,041
0
0
26,892
10,557
0
337
2,125
– 68
– 86
39,757
9,401
0
– 6
4,081
0
0
13,476
0
0
215
4,405
– 68
0
0
18,028
412,096
4,324
5,867
7,416
0
42,103
471,806
36,299
– 1,878
1,364
0
– 286
0
507,305
48,276
0
0
2,107
0
0
50,383
0
– 1,878
0
0
– 286
0
0
48,219
874,165
11,306
14,700
39,700
– 14,098
42,617
968,390
124,106
– 4,623
1,199
19,512
– 62,408
57
1,046,233
169,458
403
692
61,934
– 1,776
– 285
230,426
116
– 3,500
– 232
39,868
– 55,959
337
– 261
210,795
354,623
303,125
21,729
13,416
459,086
421,423
835,438
737,964
152 Annual Report 2009 Axel Springer AG
The internally generated intangible assets mainly
consisted of software solutions and websites.
The total of goodwill and intangible assets with
indefinite useful lives that have been assigned to the
individual reporting units amounted to less than 25 %
of the total amount of all goodwill and intangible assets
with indefinite useful lives measured at December 31,
2009, in the amount of € 655,179 thousand (PY:
€ 575,901 thousand).
The value in use of the reporting units is determined
primarily by the terminal value. The amount of the
terminal value depends on the forecasted cash flow in
the fifth year of medium-term planning, on the growth
rate of the cash flows subsequent to the medium-term
planning, and on the discount rate (see explanations in
note (3f) on assumptions in the context of the annual
impairment test).
Goodwill amounting to € 319,781 thousand and
intangible assets with indefinite useful lives amounting
to € 116,259 thousand, representing approximately
70 % of the total amount, were assigned to a total of
four reporting units in the Digital Media segment.
A reduction of cash flows by approximately 60 % in the
fifth planning year would reduce the surplus between
the value in use and the carrying amount of these
reporting units to zero. A reduction in the growth rate
by 0.5 percentage points would reduce the surplus by
14.3 %, and an increase in the discount rate by 0.5
percentage points would reduce the surplus by
17.4 %.
Please refer to the explanations at note (24) on the
impairments of goodwill and other intangible assets.
Consolidated Financial Statements 153
(5) Property, plant, and equipment
The changes in property, plant, and equipment are presented in the table below:
€ thousands
Acquisition or production cost
Balance at January 1, 2008
Initial consolidation
Currency effects
Additions
Disposals
Transfers
Balance at December 31, 2008
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Balance at December 31, 2009
Depreciation and impairments
Balance at January 1, 2008
Initial consolidation
Currency effects
Additions
Disposals
Transfers
Write-ups
Balance at December 31, 2008
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Balance at December 31, 2009
Carrying amounts
At December 31, 2009
At December 31, 2008
Land and buildings,
including buildings
on non-owned land
Technical
equipment
and
machinery
Other
equipment,
operational
and office
equipment
Construction
in progress
577,739
0
268
1,933
– 2,520
– 2,715
574,705
4,112
0
– 261
2,131
– 843
3,976
583,820
150,348
0
53
11,604
– 328
– 193
0
161,484
804
0
– 144
11,843
– 766
360
173,581
535,680
79
24
3,179
– 3,179
2,879
538,662
6,532
– 80
– 200
2,433
– 3,970
1,088
544,465
262,629
79
– 15
23,582
– 3,133
132
0
283,274
2,866
5
– 82
24,207
– 3,752
369
306,887
165,191
1,032
– 1,231
15,071
– 8,959
1,707
172,811
5,243
– 59
50
13,752
– 12,195
– 272
179,330
114,176
710
– 223
14,312
– 7,664
74
– 133
121,252
375
– 29
6
15,716
– 11,128
– 372
125,820
5,954
0
– 15
1,751
– 1,442
– 4,166
2,082
0
0
12
2,937
– 136
– 1,470
3,425
622
0
0
0
– 622
0
0
0
0
0
0
0
0
0
0
Total
1,284,564
1,111
– 954
21,934
– 16,100
– 2,295
1,288,260
15,887
– 139
– 399
21,253
– 17,144
3,322
1,311,040
527,775
789
– 185
49,498
– 11,747
13
– 133
566,010
4,045
– 24
– 220
51,766
– 15,646
357
606,288
410,239
413,221
237,578
255,388
53,510
51,558
3,425
2,082
704,752
722,249
At December 31, 2009, property, plant, and equipment
with acquisition or production cost of € 159,692
thousand (PY: € 145,981 thousand) were in use that had
already been fully depreciated.
154 Annual Report 2009 Axel Springer AG
(6)
Investment property
(7)
Investments
The development of the investment property was as
follows:
Investments accounted for using the equity method
showed the following development:
Investment
property
€ thousands
2009
2008
Carrying amount at January 1
129,993
639,371
49,318
560
2,440
52,318
516
– 3,616
49,218
21,949
656
193
– 142
22,655
716
– 357
– 5,500
17,514
31,704
29,663
Attributable net income
Dividends
Changes recognized in other
comprehensive income
Impairment losses
Acquisitions
Disposals
1,524
4,432
– 11,728
– 32,166
– 3,233
– 560
– 20,498
– 60,000
14,819
34,845
– 51,779
0
Reclassified as held-for-sale assets
0
– 456,049
Other changes
604
120
Carrying amount at December 31
59,702
129,993
The disposals in the fiscal year related to our shares in
StepStone ASA and StepStone Deutschland AG. They
resulted from the initial full consolidation of the
StepStone Group. The acquisitions related to the
purchase of 49 % of the shares in INFOR BIZNES.
The financial data for the investments accounted for
using the equity method were as follows:
€ thousands
Net income
Revenues
Assets
Liabilities
2009
2008
– 92,506
– 14,029
719,561
858,372
622,760
956,967
524,885
668,178
€ thousands
Acquisition or production cost
Balance at January 1, 2008
Additions
Transfers
Balance at December 31, 2008
Additions
Transfers
Balance at December 31, 2009
Depreciation and impairments
Balance at January 1, 2008
Additions
Transfers
Write-ups
Balance at December 31, 2008
Additions
Transfers
Write-ups
Balance at December 31, 2009
Carrying amounts
At December 31, 2009
At December 31, 2008
The fair value of investment property at December 31,
2009 amounted to € 31,704 thousand (PY: € 29,663
thousand). The fair value was determined by application
of the discounted cash flow method, with reference to the
estimated cash flows from the rental of the property. In
calculating this value, a discount rate of 7.0 % (PY: 8.0 %)
and a perpetuity capitalization rate of 6.0 % (PY: 7.0 %)
was applied. As a result of the positive development of
the fair value, impairment losses of prior years amounting
to € 5,500 thousand have been reversed.
In 2009, rental income of € 2,955 thousand (PY: € 2,807
thousand) was generated, with corresponding rental
expenses of € 1,436 thousand (PY: € 930 thousand).
Directly allocable expenses of € 108 thousand (PY: € 96
thousand) were incurred for the space that had not yet
been rented.
Consolidated Financial Statements 155
The financial information for the associated companies
classified as held for sale (cf. note (12)) is based on
financial data available at the reporting date. In the
current period, it exclusively (PY: essentially) relates to
financial data as of September 30, 2009.
€ thousands
Net income
Revenues
Assets
Liabilities
2009
2008
– 85,510
– 15,433
200,594
633,474
679,983
1,115,870
725,844
732,569
Based on the publicly listed market prices, the fair value
at December 31, 2009 of the Group’s investment in the
associated company ZertifikateJournal AG, Veitshöchheim,
amounted to € 1,798 thousand (PY: € 1,748 thousand).
(8)
Inventories
(9) Trade receivables
The trade receivables broke down as follows:
€ thousands
12/31/2009 12/31/2008
Trade receivables, nominal
317,257
274,147
Allowances for doubtful trade receivables
– 15,310
– 9,272
Trade receivables
301,947
264,875
The changes in the allowances for doubtful trade
receivables are presented in the table below:
€ thousands
Balance at January 1
Addition due to initial consolidation
Consumption
Reversals
Additions
Other changes
2009
9,272
0
2008
8,972
104
– 6,417
– 5,889
– 641
13,013
83
– 784
6,805
64
The inventories broke down as follows:
Balance at December 31
15,310
9,272
€ thousands
12/31/2009 12/31/2008
Raw materials and supplies
27,171
38,995
Semi-finished goods
Finished goods and merchandise
Inventories
2,179
2,550
2,471
2,759
31,900
44,225
Inventories of € 9,455 thousand (PY: € 10,460 thousand)
were measured at their net realizable value. At December
31, 2009, the valuation allowance for these inventories
amounted to € 2,047 thousand (PY: € 1,943 thousand),
of which € 364 thousand (PY: € 1,686 thousand) was
recognized in income in 2009.
At December 31, 2009, receivables in the amount of
€ 183,638 thousand (PY: € 166,481 thousand) were
neither past due nor subject to valuation allowances.
With regard to these receivables, there were no
indications at balance sheet date that customers would
not fulfill their payment obligations.
The past-due trade receivables at the balance sheet date
for which no valuation allowances have been charged
are presented in the table below:
€ thousands
up to 30 days
31 to 90 days
91 to 180 days
181 to 360 days
361 days and longer
12/31/2009 12/31/2008
51,543
43,188
26,139
35,054
8,914
3,420
10,063
11,675
8,999
1,806
156 Annual Report 2009 Axel Springer AG
(10) Receivables due from related parties
(11) Other assets
The receivables due from related parties broke down as
follows:
The other assets broke down as follows:
€ thousands
12/31/2009 12/31/2008
€ thousands
12/31/2009 12/31/2008
Receivables due from associated
companies
35,249
35,520
Receivables due from other related parties
8,738
20,062
Deferral of payment for regional newspaper
investments
Advance payments
H&F-Call-Option
Receivables due from related parties
43,987
55,582
Receivables from Kirch insolvency
150,000
0
16,403
15,649
10,835
7,586
5,503
4,394
566
1,840
6,175
5,833
7,382
1,483
27,327
26,690
222,613
65,051
Receivables from other taxes
Credit balances in accounts payable
Receivables due from employees
Other
Other assets
The receivables due from associated companies
included a reimbursement right for pension obligations in
the amount of € 29,464 thousand (PY: € 29,754
thousand (cf. note (14)).
The changes in the valuation allowances for receivables
due from related parties are presented in the following
table:
€ thousands
Balance at January 1
Reversals
Additions
Other changes
2009
2008
19,259
18,529
– 6
474
557
– 250
1,001
– 21
Balance at December 31
20,284
19,259
At December 31, 2009, receivables in the amount of
€ 42,841 thousand (PY: € 49,895 thousand) were
neither past due nor subject to valuation allowances.
With regard to these receivables, there were no
indications at balance sheet date that the related parties
would not fulfill their payment obligations.
The deferral of payment resulting from the sale of regional
newspaper investments is described in note (2c).
By agreement of April 8, 2004, the shareholders H&F
Rose Partners, L.P. and H&F International Rose
Partners, L.P. (collectively referred to as “H&F” in the
following) granted to Axel Springer AG 560,700 call
options for the purchase of Axel Springer AG shares.
Thus, Axel Springer AG is principally entitled to purchase
one share of Axel Spring AG from H&F for each share
issued to a member of the Management Board under the
Management Participation Program. Axel Springer AG
waived this right in connection with 62,300 shares by an
agreement with H&F of June 30, 2009. In return, Axel
Springer AG received a cash settlement. After the
conclusion of this agreement, 498,400 call options still
existed, whose exercise was subject to the condition
that Management Board members have exercised
options under the corresponding Management
Participation Plan. The entitled members of the
Management Board waived exercise of 214,312 options
under the Management Participation Plan in exchange
for a promise of a settlement payment of € 12.00 per
option (see the discussion of the Management
Participation Program under note (13f). Parallel to this, an
agreement was made with H&F on December 17/18,
2009 regarding 214,312 call options. According to this
agreement, Axel Spring AG is entitled to exercise the
stated 214,312 call options against H&F regardless of
Consolidated Financial Statements 157
whether the entitled members of the Management Board
have waived the options in the context of the
Management Participation Program. Exercise of these
214,312 options is only possible in June 2010. However,
these call options will lapse if and to the extent that H&F
sells the shares in Axel Springer AG for its part and in
exchange pays a cash settlement to Axel Springer.
Otherwise, that is, for the 284,088 call options, the right
to exercise them under the original H&F agreement of
April 8, 2004, continues in force.
Insofar as H&F would no longer have a sufficient number
of the shares of Axel Springer AG to fulfill existing call
options in case of exercise of call options by Axel
Springer AG, Axel Springer AG is entitled to a cash
settlement whose amount corresponds basically to the
difference between the sale price received by H&F less
the exercise price of the call options.
The call options are recognized as financial assets and
measured at fair value on the respective balance sheet
date by application of an option pricing model. At the
time when H&F granted the options to Axel Springer AG,
the fair value of the options was € 19,800 thousand.
Because the granting of options by H&F is categorized
as a shareholder transaction, the additional paid-in
capital was increased by the amount of the fair value.
Changes in fair value of the options are recognized in the
financial result. The increase in fiscal year 2009 resulted
mainly from the higher underlying stock exchange price.
Insofar as advance payments for asserted receivables
are announced in the context of the insolvency
proceedings against KirchMedia GmbH & Co. KGaA i.L.,
we reverse write-offs on receivables accordingly. The
receivables accepted in the table of claims by the
insolvency administrator originally totaled € 325,000
thousand. In addition, specified claims in the amount of
€ 1,411 thousand were recorded in 2009.
The miscellaneous financial assets include loans and
receivables due from other investee companies and
security deposits, among other items.
The purchase price deferral arising from the sale of the
investments in regional newspapers is described in note (2c).
(12) Assets held for sale and liabilities related to
assets held for sale
Due to a planned sale of 5.1 % of the shares in Dogan
TV Holding A.S, Istanbul/Turkey (DTV), a classification of
the investment in DTV as an asset held for sale
(€ 352,016 thousand) occurred in the fourth quarter of
2008. The contract concluded in November 2008 was
not performed, however; instead, it was replaced by a
new agreement in November 2009. The new agreement
provides that the share of DTV held by Axel Springer will
be reduced to 19.9 % by capital increases. In case of
non-performance of the capital increases, there is a right
to sell 5.1 % of the shares at the original purchase price
plus interest. Once the reduction in shares is completed,
the remaining investment in DTV will be presented within
the other non-current financial assets. The investment is
assigned to the Digital Media segment. The total
expenses recognized in accumulated other
comprehensive income in connection with this sale
amounted to € 16,710 thousand.
An initial capital increase was completed in January
2010, so that our share in DTV was reduced to 22.1 %.
When determining the recoverable amount in the context
of the impairment test of our investment in DTV, we
factored in both estimated future cash flows and a
number of contractually stipulated value-securing
mechanisms. Moreover, in order to assess the
recoverable amount of our investment, we carried out an
estimation of the prospects of success for suits filed by
DTV against assessed tax claims and tax penalties
based on external expert opinions. According to these
estimates, there was no need for impairment at
December 31, 2009.
In the prior year, the investments in a number of regional
newspapers were classified as held-for-sale (€ 122,527
thousand). The sale of these investments assigned to the
Newspapers National segment was completed in fiscal
2009, with the exception of the investment in
Westfalenblatt (cf. note (2c)). The sale of our investment
in Westfalenblatt (€ 6,190 thousand) was completed in
January 2010.
158 Annual Report 2009 Axel Springer AG
(13) Equity
The components and changes in consolidated equity are
summarized in the consolidated statement of changes in
equity.
(a) Subscribed capital
The subscribed capital of € 98,940,000 is fully paid in.
Based on the percentage of subscribed capital that each
share represents, the shares are valued at € 3.00 per
share. The subscribed capital is divided into 32,980,000
registered shares, which can be transferred only with the
consent of the company.
At balance sheet date 29,800,216 shares were
outstanding (PY: 29,682,659). During fiscal year 2009
117,557 treasury shares were issued (cf. note (13d)).
(b) Additional paid-in capital
The additional paid-in capital resulted primarily from a
shareholder contribution in the form of financial assets
(H&F call option, cf. note (11)). Furthermore, the amount
of the corresponding personnel expenses for the share-
based programs is included (cf. note (13f).
(c) Accumulated retained earnings
Besides the net income for the current period, the
accumulated retained earnings also include the income
of past periods of the companies included in the
consolidated financial statements, to the extent that they
have not been distributed to shareholders. In 2009, Axel
Springer AG has distributed an amount of € 130,604
thousands as dividend payments (€ 4.40 per qualifying
share) for the fiscal year 2008.
Equity changes resulting from owner transactions are
recognized directly in accumulated retained earnings.
The acquisition of minority interests in the reporting year
gave rise to equity reductions of € 38,506 thousand.
(d) Treasury shares
In the reporting year, Axel Springer AG issued 117,557
treasury shares in the context of the share-based
payment programs to the Management Board and the
employees (cf. note (13f)). After this, Axel Springer AG
held 3,179,784 treasury shares, corresponding to 9.6 %
of its capital stock.
(e) Accumulated other comprehensive income
Other equity within the accumulated other compre-
hensive income mainly consisted of changes related to
companies which are accounted for using the equity
method.
(f) Share-based payment
On April 14, 2004, the shareholders at the annual
meeting of Axel Springer AG approved a Management
Participation Program, under which the members of the
Management Board of Axel Springer AG are entitled to
purchase shares of Axel Springer AG. Under the terms of
this plan, 62,300 shares were offered for purchase on or
after July 1, 2004. The Management Board purchased
the shares in August 2004 for a purchase price of €
54.00 per share (plus 2 % interest from July 1, 2004).
These shares were originally subject to a multiple-year
holding period, which expired on December 18, 2007 for
50 % of the shares acquired, and on December 18, 2008
for the other 50 % of the shares acquired.
For each of the 62,300 shares purchased, the members
of the Management Board were granted eight additional
options to purchase shares of Axel Springer AG. These
options entitle their holders to purchase what was
originally up to 498,400 shares at a price of € 54.00 per
share, plus 2 % interest from July 1, 2004. The number
of exercisable options was dependent on achieving or
exceeding certain EBITA targets in fiscal years 2005 and
2006. These targets were exceeded. The vesting period
for the first 50 % of the options ended on December 18,
2007, and for the second 50 % of the options on
December 18, 2008.
Consolidated Financial Statements 159
In 2009, a total of 34,888 options were exercised at a
weighted average exercise price of € 59.67. The
weighted average market price at the exercise times was
€ 70.13. On December 17, 2009, the entitled members
of the Management Board stated that they were waiving
exercise of 214,312 options, and in exchange received a
promise of a settlement payment of € 12.00 per option.
On December 17, 2009, the market price of a share in
Axel Springer AG was € 75.96 (XETRA closing price),
and the calculated exercise price of the options was
€ 59.90. The settlement payment was made in January
2010. On December 31, 2009, 249,200 options were
thus still outstanding. The exercise period of the options
ends on December 20, 2010. The expense recognized in
2009 for the Management Participation Program was
€ 0 thousand (PY: € 406 thousand).
Effective July 1, 2009, 375,000 stock appreciation rights
(SARs) were issued to the members of the Management
Board. The SARs are granted until June 30, 2015, and
can be exercised at the earliest from July 1, 2013. If the
Management Board Employment Contract or the
appointment to the Management Board continues to
exist until June 30, 2013, then all of the SARs granted to
the Management Board member can become vested. If
a Management Board member leaves after June 30,
2010, but before July 1, 2013, the SARs granted vest
pro rata temporis in proportion to the four-year waiting
period. An additional requirement for vesting to occur is
that, within the period from July 1, 2012, to June 30,
2013, during a period of 90 consecutive calendar days,
either the price of the Axel Springer share is at least 30 %
higher than the base value of € 60.86, or the percentage
by which the price of the Axel Springer share is above
the base value on average exceeds the average
percentage price development of the DAX. Exercise of
the SARs is only possible if the average share price of
Axel Springer AG in the 90 calendar days prior to
exercise is at least 30 % above the basis value and the
percentage price increase of the Axel Springer share
exceeds the development of the DAX price index in the
corresponding period. Each SAR grants a payment claim
in the amount of the growth in value of the Axel Springer
share, restricted to a maximum of € 121.72; this
corresponds to the difference between the volume-
weighted average price during the last 90 calendar days
prior to exercise and the base value. The Management
Board members are obligated to hold one share of Axel
Springer AG as their own investment for each ten SARs.
Disposal of these shares prior to exercise of the SARs
leads to a lapse of the SARs in the proportion of one
share for each ten SARs. The value of the SARs was
determined to be € 12.65 (€ 4,743 thousand for all
warrants) by application of a Black-Scholes model in a
Monte-Carlo simulation at the grant date. The total value
will be recognized in liabilities due to related parties over
the vesting period and presented within the personnel
expenses. In 2009, € 1,460 thousand were recognized
as personnel expenses. The liability was € 1,460
thousand at December 31, 2009.
In May 2009, as part of a free share and stock
participation program, 82,669 treasury shares were
issued in the form of free shares or by conversion of
Group employee bonus claims at their respective fair
value at the time of issue in the amount of € 71.51 or
€ 69.15. Personnel expenses of € 3.6 million were
incurred in the reporting year for both programs.
Prior to its acquisition by Axel Springer on September 2,
2009, StepStone ASA had granted stock options for
shares of StepStone ASA to employees and
management. Due to the acquisition of all of the shares
in StepStone ASA by Axel Springer, related with a
deregistration of the shares of StepStone ASA
commenced in December 2009, existing stock options
were repurchased by the end of January 2010. At
balance sheet date, 6,113,807 options still existed with a
weighted average exercise price of € 0.78. The
personnel expenses recognized in the consolidated
financial statements of Axel Springer AG amounted to
€ 2,417 thousand.
160 Annual Report 2009 Axel Springer AG
auFeminin.com S.A., Paris/France, granted its senior
executives subscription rights for free shares and stock
options. These share-based payments must be settled
with shares of auFeminin.com S.A.
The fair values of the stock options granted in current
and prior year were determined by application of the
Black-Scholes model at the grant date. For this purpose,
the following parameters were applied:
The 53,000 free shares that were granted in April 2008,
as well as the 37,000 free shares that had already been
granted at the date of acquisition of auFeminin.com S.A.
in July 2007, will be transferred to the plan participants
after a period of two years after the grant date provided
that certain operating targets (particularly EBIT and
revenue targets), and in some cases also market goals
(audience group quotas), have been achieved, provided
that the participants are still employed with the company
and provided that the free shares have not expired. The
holding period after the transfer of shares is an additional
two years.
The 99,000 stock options, each one entitling the holder
to purchase one share of auFeminin.com S.A., that were
granted by the April 2008 stock option plan, as well as
the 74,000 stock options that had already been granted
at the date of acquisition of auFeminin.com S.A. in July
2007 (weighted average exercise price of € 18.95), will
become vested in equal annual installments over a
period of four years. The option grant is not conditioned
on any further earnings or market conditions. These
options can be exercised for the first time at the end of
the fourth year after the options were granted and for a
total of four years thereafter. The stock options entitle the
holders to purchase up to 99,000 shares at a price of
€ 20.46 per share.
In June 2009, 300,000 stock options for acquisition of
one share of auFeminin.com S.A. each with an exercise
price of € 8.94 were issued to senior employees. These
options vest upon expiration of the first (50 %) and
second (50 %) year after the grant date, insofar as the
earnings target established for the individual tranche
(EBITDA 2009 or EBITDA 2010) is achieved. Once they
have vested, the options can be exercised for a total of
five (50 %) or four (50 %) years.
Options June
2009
Options April
2008
Share price in €
Exercise price in €
Interest rate for risk-free
investments, in %
Expected life, in years
Expected volatility, in %
Expected dividend yield, in %
9.00
8.94
0.96 resp. 1.62
1 resp. 2
40.00
0.00
Fair value at grant date, in €
1.49 resp. 2.14
13.50
20.46
3.74
4
25.00
0.00
1.43
In 2009, no options or rights to purchase free shares
lapsed. In the prior year, no options, but 40,000 rights to
purchase free shares lapsed. At the balance sheet date,
a total of 473,000 stock options with a weighted average
exercise price of € 12.92, as well as 50,000 rights to get
free shares had been issued. None of these options was
yet exercisable at the balance sheet date.
The compensation expenses for the share-based
payment programs of auFeminin.com S.A. amounted to
€ 466 thousand in fiscal year 2009 (PY: € 617
thousand). The additional paid-in capital was increased
by the same amount.
(g) Minority interests
The minority interests mainly related to the following
companies:
€ thousands
ZANOX Group
auFeminin Group
Digital Window
wallstreet:online
Special-purpose entities
Other companies
Minority interests
12/31/2009 12/31/2008
17,469
17,472
11,639
11,102
7,673
4,258
5,905
4,698
0
5,686
3,399
4,909
51,642
42,568
Consolidated Financial Statements 161
(14) Pension obligations
The amount of the provision was calculated as follows:
Provisions for pensions were accounted for the
obligations arising from vested pension rights and
current benefits for former and active employees of the
Axel Springer Group and their survivors. The different
pension plans within the Group are organized in
accordance with the legal, tax-related, and economic
conditions of each country. The provision for defined
benefit plans amounts to the present value of the
obligation at balance sheet date net of the fair value of
plan assets.
Under its defined contribution pension plans, the Group
mainly contributes to public-sector pension insurance
carriers by virtue of the applicable laws. The current
contribution payments are presented as social security
costs within personnel expenses (cf. note (23), € 39,804
thousand in 2009 (PY: € 39,208 thousand)).
Expenses of € 22,958 thousand were incurred for
defined benefit pension plans in 2009 (PY: € 22,077
thousand). These expenses broke down as follows:
€ thousands
Current service cost
Interest expense
Employee contribution
2009
7,089
2008
7,461
21,361
20,123
– 1,400
– 1,381
Expected income from plan assets
– 2,433
– 2,508
Expected income from reimbursement
rights
Pension expenses
– 1,658
– 1,618
22,958
22,077
Actual income from plan assets
Actual income from reimbursement rights
1,960
2,244
1,574
1,618
Service cost and employee contributions are presented
within the personnel expenses. The interest portion
contained in the pension expenses and the expected
income from the plan assets are presented as
components of interest expenses and interest income,
respectively.
€ thousands
12/31/2009 12/31/2008*
Present value of defined benefit
obligations financed by fund
80,212
83,586
Fair value of plan assets
– 72,066
– 76,184
Assets from over-coverage
0
445
Present value of defined benefit
obligations financed by provision
Provision
Reimbursement right
Net obligation
351,324
336,122
359,471
343,969
– 29,464
– 29,754
330,007
314,215
*) Adjusted due to the change of the accounting policy for pension obligations.
At balance sheet date, actuarial gains before deferred
taxes amounting to € 2,379 (PY: € 11,003) were
accounted for in the accumulated other comprehensive
income.
In connection with the contribution of the rotogravure
printing operations to PRINOVIS Ltd. & Co. KG,
Hamburg, it was also agreed in 2005 to transfer the
pension obligations attributable to this division. The
Commercial Register entry, upon which the legal validity
of this transfer depends, had not yet been effected at the
balance sheet date for the current pension obligations
and the vested pension claims of former employees. By
virtue of contractual agreements, Axel Springer AG is
entitled to reimbursement of the pension obligations or
pension expenses arising in this respect. The
reimbursement right is presented as a separate asset (cf.
note (10)), whereas in the income statement, the income
from the reimbursement is netted with the corresponding
pension expenses. In 2009, this provision amounted to
€ 29,464 thousand (PY: € 29,754 thousand). The
changes in the reimbursement right in the reporting
period consisted of compounding the corresponding
pension provisions by € 1,658 thousand (PY: € 1,618
thousand), actuarial gains of € 586 thousand (PY: € 0
thousand) and reimbursement of pension payments of
€ 2,534 thousand (PY: € 2,548 thousand).
162 Annual Report 2009 Axel Springer AG
The fair value of the plan assets showed the following
changes:
The changes in the present value of the pension
obligations financed by fund and by provision are
presented in the table below:
€ thousands
2009
2008
Plan assets at January 1
76,184
66,106
€ thousands
Expected income from plan assets
Employee contribution
Employer contribution
Benefits paid
Actuarial losses
Exchange rate changes
2,433
1,400
1,684
2,508
1,381
1,230
– 9,107
– 1,565
– 473
– 56
– 935
7,458
Plan assets at December 31
72,066
76,184
Obligation at January 1
Current service cost
Interest expense
Actuarial losses (PY: gains)
Payments by employees
Transfer of pension obligation
Exchange rate change
Payments to retirees
2009
2008
419,708
407,649
7,089
7,461
21,361
20,123
8,746
– 6,512
3,109
– 260
3,146
0
– 46
8,143
– 28,170
– 20,301
The plan assets almost entirely consisted of claims under
insurance contracts. The investment strategy is based on
specific legal requirements which are in line with our
investment policy. The expected long-term income from
plan assets is derived from the expected income of the
asset classes within the portfolios and is based on a
value-securing investment strategy mainly investing in
obligations of issuers with high credit rating and real
estate. The investment portfolio broke down as follows:
Target port-
folio structure Actual portfolio structure
12/31/2010
12/31/2009
12/31/2008
Obligation at December 31
431,537
419,708
Of the indicated pension payments, an amount of
€ 2,534 thousand (PY: € 2,548 thousand) related to the
pension obligations that have not yet been transferred to
PRINOVIS Ltd. & Co. KG, Hamburg, and which are
subject to the reimbursement right.
Bonds
Shares
71.5 %
73.3 %
3.0 %
2.2 %
Real estate
19.0 %
18.9 %
Others
Total
6.5 %
5.6 %
100.0 %
100.0 %
100.0 %
73.4 %
1.0 %
19.0 %
6.6 %
Consolidated Financial Statements 163
In fiscal year 2010, contributions to fund-financed
defined benefit plans are expected to total € 1,938
thousand.
The amounts of the current and the prior four reporting
periods for the present value of the obligations, the fair
value of plan assets and the experienced-based adjust-
ments to plan assets and liabilities are summarized in the
table below:
€ thousands
12/31/2009 12/31/2008 12/31/2007 12/31/2006 12/31/2005
Present value of defined benefit obligations financed by fund
80,212
83,586
71,404
Fair value of plan assets
72,066
76,184
66,106
-
-
-
-
Present value of defined benefit obligations financed by provision
351,324
336,122
336,245
362,502
370,151
Experience-based adjustments to plan liabilities
– 3,858
2,820
1,848
2,926
Experience-based adjustments to plan assets
– 480
16
9
-
-
-
(15) Other provisions and accrued liabilities
The other provisions and accrued liabilities broke down as follows:
€ thousands
Structural measures
Other obligations towards employees
Partial early retirement program (Altersteilzeit)
Returns
Litigation expenses
Discounts and rebates
Dismantling obligations
Other taxes
Other
Balance at
01/01/2009
Utilization
Reversals
Additions
Other
changes
Balance at
12/31/2009
15,696
36,686
36,407
31,157
12,164
6,596
4,036
2,396
14,874
35,415
13,194
27,915
8,044
5,863
118
2,394
822
1,271
869
3,242
4,120
733
357
2
52,954
42,622
10,031
24,990
8,555
5,490
1,499
4,169
24,566
15,972
1,551
10,845
– 2
122
2,987
2,630
19
– 29
339
– 25
416
52,952
42,744
35,362
27,620
8,574
5,461
5,399
4,144
18,304
Other provisions
169,704
123,789
12,967
161,155
6,457
200,560
Non-current provisions are primarily contained in the
provisions for partial early retirement programs
(Altersteilzeit).
Other obligations towards employees primarily included
variable compensation tied to performance and loyalty
bonuses. Provisions for structural measures mainly
included provisions for restructuring measures in various
areas of the Group. Among others, miscellaneous other
provisions comprise anticipated losses on rental
agreements, interest from tax audits, contributions, and
custody/archiving obligations. The other changes
resulted primarily from currency translation differences
and compound interest.
164 Annual Report 2009 Axel Springer AG
(16) Financial liabilities
(18) Other liabilities
The financial liabilities comprise exclusively liabilities due
to banks and were characterized by utilization, interest
rates, and maturities set forth in the table below. All
liabilities are denominated in euros. Short-term loans are
not presented in the table.
2009 €
thousands
2008 €
thousands
Interest rate in %
Maturity
The other liabilities broke down as follows:
€ thousands
Prepaid subscriptions
12/31/2009 12/31/2008
73,952
64,871
Acquisition-related liabilities
50,085
54,373
Liabilities due to employees
36,011
26,171
Advance payments
305,000
430,000
3-month EURIBOR + 0.15 08/14/2013
Liabilities from other taxes
34,988
37,320
17,043
18,376
13,233
15,242
11,034
11,649
5.64 10/31/2012
Liabilities from derivatives
4.63 07/31/2011
Debit balances in accounts receivable
19,827
10,718
5.65 06/30/2012
Capital investment subsidies
5.09 11/30/2013
Liabilities for duties and contributions
6,231
6,711
3-month EURIBOR + 0.30 10/15/2022
Liabilities due to social insurance carriers
0
1,500
3.99 03/31/2009
Other
23,320
30,313
22,414
27,649
21,769
15,236
17,221
18,932
6,107
3,353
4,373
2,789
57,646
25,630
The interest rates were mainly equivalent to the effective
rates of interest. In the case of fixed-interest loans, the
interest rates are fixed until the maturity date.
Furthermore, at balance sheet date additional unused
short-term and long-term credit facilities amounted to
€ 1,220 million (PY: € 1,095 million).
(17) Liabilities due to related parties
The liabilities due to related parties broke down as
follows:
€ thousands
12/31/2009 12/31/2008
Liabilities due to associated companies
9,051
9,036
Liabilities due to other related parties
17,297
15,482
Liabilities due to related parties
26,348
24,518
Other liabilities
331,704
281,055
Acquisition-related liabilities consisted of contingent
liabilities resulting from put options and earn-out
agreements in respect of business combinations and
acquisition of minority interests. Liabilities due to
employees related to outstanding wage and salary
payments, management bonus and severance award
claims, as well as liabilities resulting from overtime and
unused vacation.
The increase in miscellaneous other liabilities primarily
derives from the initial consolidation of acquired
companies.
Consolidated Financial Statements 165
(19) Maturity analysis of financial liabilities
We continually monitor the availability of financial
resources to fund the company’s operating activities and
investments in companies by means of a Group-wide
liquidity planning system. In particular, the financial
resources raised by a credit facility granted to the Group
have contributed to the high degree of financial flexibility
of the Axel Springer Group.
The contractually agreed (undiscounted) payments
related to non-derivative financial liabilities and
derivatives are presented in the following table:
€ thousands
Undiscounted cash outflows
Liabilities due to banks
Liabilities from the purchase of minority interests
Carrying
amount at
12/31/2009
390,281
43,470
Other non-derivative financial liabilities
290,715
283,364
Derivative financial liabilities designated as a hedging instrument
21,769
6,660
2010
2011 – 2014
16,611
401,771
3,585
43,580
1,826
14,952
2015 ff.
3,948
0
5,525
157
€ thousands
Undiscounted cash outflows
Liabilities due to banks
Liabilities from the purchase of minority interests
Carrying
amount at
12/31/2008
524,028
29,886
Other non-derivative financial liabilities
254,063
247,596
Derivative financial liabilities designated as a hedging instrument
15,236
3,628
2009
2010 – 2013
32,348
575,835
2014 ff.
4,692
3,734
29,145
1,890
11,370
4,577
238
166 Annual Report 2009 Axel Springer AG
Notes to the consolidated statement of
comprehensive income
(22) Purchased goods and services
The purchased goods and services broke down as follows:
(20) Revenues
The revenues broke down as follows:
€ thousands
Circulation revenues
Advertising revenues
Printing revenues
Other revenues
Revenues
2009
2008
1,176,239
1,215,748
1,138,501
1,248,074
42,892
46,545
253,959
218,171
2,611,591
2,728,538
The revenues from barter transactions amounted to
€ 36,922 thousand in 2009 (PY: € 33,352 thousand).
These revenues were mainly generated from bartering
advertising services.
(21) Other operating income
The other operating income broke down as follows:
€ thousands
Income from disposal of fixed assets
Income from cost allocations to related
parties
Income from Kirch insolvency
Foreign exchange gains
2009
9,086
8,466
7,586
5,829
2008
885
9,198
6,175
1,752
Miscellaneous operating income
39,687
67,511
Other operating income
70,654
85,521
For information about the income from the Kirch
insolvency, please refer to note (11).
In addition to a reversal of impairment losses on
investment properties in prior years amounting to
€ 5,500 thousand (PY: € 142 thousand), miscellaneous
other operating income includes a variety of immaterial
circumstances.
€ thousands
2009
2008
Raw materials and supplies and
purchased merchandise
Purchased services
282,697
314,112
603,748
631,261
Purchased goods and services
886,445
945,374
Raw materials and supplies and purchased merchandise
comprise paper costs amounting to € 196,125 thousand
(PY: € 223,872 thousand).
The cost of purchased services was predominantly composed
of purchased third-party printing services and professional
fees, as well as publisher services. The purchased third-party
printing services also include paper costs.
(23) Personnel expenses
The personnel expenses split up as follows:
€ thousands
Wages and salaries
Social security
Expenses for share-based payments
Pension expenses
Other benefit expenses
2009
2008
691,009
626,035
83,859
82,430
4,307
7,609
5,159
1,023
8,412
4,557
Personnel expenses
791,943
722,457
The average number of employees in the Group is
shown below:
Salaried employees
Editors
Wage-earning employees
2009
6,436
3,378
927
2008
6,112
3,566
988
Total employees
10,740
10,666
The increase year-on-year resulted from the initial
consolidation of acquired companies.
Consolidated Financial Statements 167
(24) Depreciation, amortization, and impairments
(25) Other operating expenses
The depreciation, amortization, and impairments split up
as follows:
The other operating expenses broke down as follows:
€ thousands
Impairment losses in goodwill
2009
0
2008
2,107
€ thousands
2009
2008
Mailing and postage expenses
161,743
170,845
Advertising expenses
151,183
152,864
Amortization of other intangible assets
38,217
31,096
Expenses for non-company personnel
92,446
91,853
Impairment losses in other intangible
assets
Depreciation of property, plant, and
equipment
Impairment losses in property, plant, and
equipment
Depreciation of investment property
Depreciation, amortization, and
impairments
1,651
28,731
Commissions and gratuities
75,897
83,630
Rental and leasing expenses
34,105
33,410
51,387
49,492
Services provided by related parties
31,843
29,663
379
716
7
656
Maintenance and repairs
Travel expenses
Adjustment of allowances for doubtful
receivables
92,350
112,088
Other taxes
Foreign exchange losses
25,446
26,886
18,540
20,127
15,975
10,250
6,868
5,362
8,722
4,465
The increase in the amortization of other intangible
assets primarily resulted from additional amortization
charges deriving from the initial consolidation of acquired
companies in fiscal year 2009.
Impairment losses in goodwill and other intangible assets
of the prior year primarily related to the segment
Magazines National.
Impairment losses in non-current financial assets are
included in income from investments.
Miscellaneous operating expenses
80,811
69,508
Other operating expenses
705,107
697,335
The following professional fees for the services rendered
by the auditor Ernst & Young GmbH were recognized:
€ thousands
2009
2008
Audits of the annual financial statements
Other certification or appraisal services
Tax advisory services
Other services
786
188
132
692
627
130
561
220
Total professional fees
1,798
1,538
The professional fees for the audit of financial statements
include the audit of the separate financial statements of
Axel Springer AG and other German subsidiaries, and
the audit of the consolidated financial statements. The
other certification and appraisal services include fees for
the auditor’s review of the quarterly financial statements,
the semi-annual financial statement, and the audits to
verify compliance with certain contractual agreements.
The tax advisory fees include support provided with
regard to specific tax questions.
168 Annual Report 2009 Axel Springer AG
(26) Income from investments
The investment income in the reporting year mainly
resulted from the profit from the sale of investments in
regional newspapers (€ 210,971 thousand), as well as
impairments of the investments in PRINOVIS (€ 16,024
thousand) and ZertifikateJournal (€ 4,474 thousand).
In the prior year, the investment income primarily resulted
from the profit from the sale of shares of ProSiebenSat.1
Media AG in the amount of € 438,250 thousand, as well
as the impairment of the investment in PRINOVIS.
The other financial result contained income of € 9,432
thousand (PY: expenses of € 27,806 thousand) for the
change in fair value of the H&F options, which particularly
resulted from the increased share price.
The total interest income and expenses for those financial
assets and liabilities that were not measured at fair value
through profit or loss are presented in the table below:
€ thousands
Total interest income
2009
5,943
2008
9,840
Total interest expenses
– 21,235
– 32,427
(28) Income taxes
The income taxes paid or owed and the deferred taxes
are recognized under income taxes. Income taxes
consist of trade tax, corporate income tax, and solidarity
surcharge, and the corresponding foreign income taxes.
The income tax expenses are broken down below:
€ thousands
Current taxes
Deferred taxes
Income taxes
2009
2008
99,700
120,249
– 15,860
– 3,062
83,840
117,187
(27) Financial result
The financial result broke down as follows:
€ thousands
2009
2008
Interest income from derivatives
526
14,810
Interest income from bank accounts
Interest income from loans and securities
1,757
155
5,772
1,343
Miscellaneous interest income
10,817
11,453
Interest income
13,255
33,378
Interest expenses on liabilities due to
banks
– 12,075
– 29,278
Interest expenses on pension provisions,
less reimbursements
– 19,703
– 18,505
Interest expenses from derivatives
– 8,464
– 10,815
Miscellaneous interest expenses
– 7,439
– 8,136
Interest and similar expenses
– 47,681
– 66,734
Other financial result
Financial result
9,446
– 28,191
– 24,980
– 61,547
Consolidated Financial Statements 169
The income tax expense applying the tax rate of
Axel Springer AG reconciles to the income tax expense
recognized in the income statement as follows:
in ProSiebenSat.1 Media AG. The trade tax deductions
in 2009 mainly resulted from the sale of investments in
partnerships.
€ thousands
2009
2008
Income before income taxes
397,739
688,254
Tax rate of Axel Springer AG
31.19 %
31.19 %
Expected tax expenses
124,055
214,666
Differing tax rates
Permanent differences
7,253
15,364
– 5,576
33,586
Deferred tax assets and liabilities were recognized to
account for temporary differences and tax loss carry-
forwards, as follows:
€ thousands
12/31/2009
12/31/2008
Deferred
tax
assets
Deferred
tax
liabilities
Deferred
tax
assets*
Deferred
tax
liabilities
Adjustments to carrying amounts of
deferred taxes
Current income taxes for prior years
Deferred income taxes for prior years
Non-deductible operating expenses
8,653
– 3,838
Intangible assets
13,742
84,409
16,767
62,597
435
4,203
8,490
3,862
169
11,359
Other property, plant and
equipment
Non-current financial
assets
105 124,913
102
126,145
862
3,336
4,576
18,233
Tax-exempt income
– 37,273
– 160,191
Inventories
1,278
0
915
0
Receivables and other
assets
1,009
6,359
1,504
8,089
Pension provisions
21,414
0
17,551
Other provisions
Liabilities
6,901
9,248
623
569
5,611
7,345
0
203
375
Temporary differences
54,559 220,209
54,371
215,642
Tax loss carry-forwards
14,037
0
8,046
0
Total
Offsetting
68,596 220,209
62,417
215,642
– 52,323 – 52,323 – 49,385 – 49,385
Amounts as per balance
sheet
16,273 167,886
13,032
166,257
*) Adjusted due to the change of the accounting policy for pension obligations.
Trade tax additions/deductions
Other effects
Income taxes
– 25,494
– 906
1,264
947
83,840
117,187
Companies having the legal form of a corporation
resident in Germany are subject to corporate income tax
at the rate of 15 % and solidarity surcharge of 5.5 % of
the corporate income tax owed. In addition, these
companies are subject to trade tax, for which the
amount is municipality-specific. Companies having the
legal form of a partnership are subject to trade tax
exclusively. The net income is assigned to the
shareholder for purposes of corporate income tax.
The effects of different tax rates for partnerships and for
foreign income taxes from the tax rate applicable to
Axel Springer AG are explained in the reconciliation in the
item differing tax rates. The permanent differences mainly
resulted from impairment losses in goodwill,
deconsolidation effects, and foreign losses that are not
taken into account for tax purposes. The adjustments to
the carrying amounts of deferred taxes included € 8,262
thousand (PY: € 14,982 thousand) for the non-
recognition of deferred taxes on tax loss carry-forwards.
The tax exemption effects in 2009 mainly resulted from
the sale of investments in regional newspapers, in the
previous year predominantly from the sale of the shares
170 Annual Report 2009 Axel Springer AG
The net balance of deferred tax items from January 1 to
December 31, 2009, was derived as follows:
€ thousands
Deferred tax assets at January 1
2009
13,032
2008*
8,733
Deferred tax liabilities at January 1
– 166,257
– 198,465
Net tax position at January 1
– 153,225
– 189,732
Deferred tax expenses of current year
15,860
3,062
Changes in deferred taxes recognized in
other comprehensive income
6,706
1,676
Changes in consolidation group
– 20,954
31,769
Net tax position at December 31
– 151,613
– 153,225
Deferred tax assets at December 31
16,273
13,032
Deferred tax liabilities at December 31
– 167,886
– 166,257
*) Adjusted due to the change of the accounting policy for pension obligations.
Of the deferred tax assets, an amount of € 4,602
thousand (PY: € 7,824 thousand), of the deferred tax
liabilities, an amount of € 2,767 thousand (PY: € 2,443
thousand) can be realized in the short term.
The amount of deferred tax assets to be disclosed in
accordance with IAS 12.82 was € 14,771 thousand (PY:
€ 17,104 thousand). It is expected that this amount can
be realized by application against the available operating
income and structural measures in subsequent years.
Deferred taxes in the total amount of € 6,433 thousand
(PY: € – 269 thousand; adjusted due to the change of
the accounting policy for pension obligations) were
recognized directly in equity, as they relate to matters
that were likewise recognized directly in equity.
In fiscal year 2009, no deferred tax assets were
recognized with respect to corporate income tax loss
carry-forwards amounting to € 389,295 thousand (PY:
€ 109,849 thousand), and with respect to trade tax loss
carry-forwards amounting to € 39,875 thousand (PY:
€ 38,481 thousand) because it did not appear probable
that sufficient taxable income could be generated for
these amounts in the near future. Of these tax loss carry-
forwards, an amount of € 64,266 thousand (PY:
€ 41,833 thousand) can be carried forward for up to five
years and an amount of € 9,718 thousand (PY: € 11,214
thousand) can be carried forward for six to ten years.
The utilization of tax loss carry-forwards that had not
previously been recognized as deferred tax assets
caused a reduction in income tax expenses of € 95
thousand (PY: € 2,472 thousand). Capitalized tax loss
carry-forwards in the amount of € – 280 thousand (PY:
€ – 6,750 thousand) were corrected as a result of tax
audits or differing tax assessments.
As a rule, deferred taxes must be recognized to account
for the difference between the Group’s interest in the
equity of the subsidiaries as presented in the
consolidated balance sheet and the corresponding
investment balance recognized in the financial
statements for tax purposes. Such differences can result
from the retention of earnings. Deferred tax liabilities
were not recognized on differences of € 10,206
thousand (PY: € 13,276 thousand) because a realization
is not planned at the present time. In the case of sale or
profit distribution, the gain on disposal respectively the
dividend would be subject to taxation with 5 % in
Germany; in addition, foreign withholding taxes might
incur.
(29) Earnings per share
The earnings per share were determined as follows:
2009
2008
Net income attributable to
shareholders of Axel Springer
AG
€
thou-
sands
303,481
560,050
Weighted average shares
outstanding
Dilution effect upon exercise of
stock options
000s
29,748
30,141
000s
33
63
Weighted average shares diluted
000s
29,781
30,204
Net income attributable to
shareholders of Axel Springer
AG per share
basic
diluted
€
€
10.20
10.19
18.58
18.54
Consolidated Financial Statements 171
(30) Other income/loss
The other income/loss broke down as follows:
€ thousands
Before tax
Tax effect
Net
Before tax
Tax effect
Actuarial gains/losses from defined benefit pension obligations
– 8,624
2,524
– 6,100
5,554
– 1,672
2009
2008
Net
3,882
10,339
– 434,169
0
0
1,655
10,339
6
– 434,169
0
0
2,021
– 4,503
– 15,402
4,068
– 11,334
0
– 3,086
0
0
0
2,161
6,706
– 4,578
– 10,872
– 1,446
– 12,318
– 16,606
– 444,550
950
– 443,600
Currency translation differences
Changes in fair value of available-for-sale financial assets
Changes in fair value of derivatives in cash flow hedges
Changes in revaluation surplus
Other income/loss from investments accounted for using the
equity method
Other income/loss
1,655
6
– 6,524
– 3,086
– 6,739
– 23,312
In the prior year, changes in fair value of available-for-
sale securities were recognized in income in the amount
of € 434,174 thousand.
Notes to the consolidated statement of
cash flows
(31) Composition of cash and cash equivalents
(32) Other disclosures
Cash and cash equivalents were composed of the
following elements:
€ thousands
Cash
12/31/2009 12/31/2008
197,259
154,521
Securities with a term of less than three
months
0
8
Cash and cash equivalents
197,259
154,529
Of the cash and cash equivalents presented in the
consolidated cash flow statement, an amount of € 3,464
thousand (PY: € 4,460 thousand) was restricted.
The other non-cash income and expenses particularly
resulted from the fair value measurement of financial
derivatives.
Capital expenditures of € 1,737 thousand (PY: € 584
thousand), most of which for investments in property,
plant, and equipment, had not yet been realized as cash
payments. Acquisitions obtaining control respectively
divestitures losing control of companies and businesses
resulted in net payments of € 31,259 thousand (PY:
€ 12,932 thousand).
In the prior year, the cash flows related to assets held for
sale were assigned to the original line items in the
consolidated cash flow statement.
172 Annual Report 2009 Axel Springer AG
Notes to the segment report
(33) Basic principles of segment reporting
The segment reporting reflects the internal management
and reporting structures. We already applied IFRS 8
“Operating Segments” in the prior year.
The reporting format is structured according to the
operating business areas of the Axel Springer Group and
comprises the reporting segments Newspapers National,
Magazines National, Print International, Digital Media,
and Services/Holding.
Segment liabilities and investments were no longer
disclosed as these measures are not used for decision
making at segment level.
(a) Operating segments
The Newspapers National segment includes daily and
Sunday newspapers, national and regional subscription
newspapers, and advertising supplements. This segment
also included investments in German newspaper
publishing companies.
The Magazines National segment includes TV program
guides, women’s magazines, men’s magazines, youth
magazines, computer magazines, business magazines,
news magazines, family magazines, and further special-
interest magazines, as well as investments in magazine
publishing companies in Germany.
The newspapers and magazines published in
foreign countries are comprised within the Print
International segment.
The online and broadcasting activities are comprised
within the Digital Media segment. In particular, this
segment comprises online activities derived from print
brands and the previously existing activities of ZANOX,
Idealo, Immonet, auFeminin, StepStone, and Digital
Window. Furthermore, this segment also comprises the
investment in the TV broadcast company Dogan TV.
The Services/Holding segment comprises the
remaining business activities, including services
such as customer service, sales, logistics, direct
marketing, and office buildings, as well as purely
internal departments like IT, accounting, human
resources, and corporate staff departments. Our
three offset printing plants, investments in two offset
printing plants outside Germany, and the rotogravure
printing company PRINOVIS are likewise included in
the Services/Holding segment.
(b) Geographical Information
The activities of the Axel Springer Group are conducted
mainly in Germany and in other European countries.
(34) Segment information
The segment information was compiled on the basis of
the recognition and measurement methods applied in
the consolidated financial statements. The external
revenues consist of circulation revenues from the sale of
publishing products, advertising revenues, and revenues
from rendering services. The internal revenues consist of
revenues from the exchange of goods and services
between the various segments. The transfer pricing is
based on cost coverage.
Consolidated Financial Statements 173
Other disclosures
(35) Capital management
Beyond the provisions of German law applicable to stock
corporations, Axel Springer AG is not subject to any
further obligations relating to capital preservation,
whether from its own Articles of Incorporation or from
contractual obligations. The financial key figures used by
the company for management purposes are primarily
earnings-driven. The goals, methods, and processes of
our capital management are subordinate to the earnings-
driven financial key figures.
For the purpose of maintaining and adjusting the capital
structure, the company can adjust the dividend
payments to its shareholders or purchase treasury
shares representing up to 10.0 % of the subscribed
capital. Treasury shares can be used for acquisition
financing or they can be retired. At December 31, 2009,
the treasury shares represented 9.6 % of the company’s
share capital.
Under the terms of its Management Participation
Program, the company is obligated to sell treasury
shares to the management. At the balance sheet date
we possessed enough treasury shares to fulfill the
obligations of the program.
We use the performance figure EBITDA (earnings before
interest, taxes, depreciation and amortization) to
measure segment earnings. In calculating this
performance figure, non-recurring effects and purchase
price allocation effects are eliminated.
Non-recurring effects include effects from the acquisition
and disposal of subsidiaries, business divisions, and
investments, as well as impairment and write-ups of
investments, effects from the sale of real estate, and
special depreciation and write-ups of real estate used by
the company. The non-recurring effects include the
results of the sale of a number of investments and
business divisions (€ 208,039 thousand), impairment of
investments (€ – 21,827 thousand), and costs in
connection with acquisitions of business occurring in the
fiscal year and planned for the future (€ – 5,812
thousand). In the prior year, effects from the sale of
investments (€ 438,736 thousand) and write-ups and
impairment of investments (€ – 62,473 thousand) were
recognized.
The effects of purchase price allocations mainly
consisted of amortization and depreciation, as well as
impairments of intangible assets and property, plant, and
equipment that were acquired in the context of business
combinations. In 2009, the effects of purchase price
allocations amounted to € 26,692 thousand (PY:
€ – 46,473 thousand). Impairment of € 28,731 thousand
was included in the prior year.
Segment assets are composed of the assets required for
operation. Certain assets in the amount of approximately
€ 366 million (PY: € 307 million) were not segmented.
They mainly included cash and cash equivalents as well
as income tax assets.
For purposes of geographical segment reporting, the
revenues are segmented according to the location of the
customer’s registered office.
174 Annual Report 2009 Axel Springer AG
(36) Financial assets and liabilities
(a) Presentation by categories
The balance sheet items comprising financial assets and liabilities can be attributed to the measurement categories
according to IAS 39 as follows:
€ thousands
Assets 12/31/2009
Other non-current investments and securities
Loans and advances
Other non-current financial assets
Trade receivables
Receivables due from related parties
Derivatives not designated as a hedging instrument
Other
Other assets
Cash and cash equivalents
Liabilities 12/31/2009
Financial liabilities
Trade payables
Liabilities due to related parties
Derivatives designated as a hedging instrument
Other
Other liabilities
Assets 12/31/2008
Other non-current investments and securities
Loans and advances
Other non-current financial assets
Trade receivables
Receivables due from related parties
Derivatives designated as a hedging instrument
Derivatives not designated as a hedging instrument
Other
Other assets
Cash
Securities with a term of less than three months
Cash and cash equivalents
Liabilities 12/31/2008
Financial liabilities
Trade payables
Liabilities due to related parties
Derivatives designated as a hedging instrument
Other
Other liabilities
Financial
liabilities
measured
at
amortized
cost
Available-
for-sale
financial
assets
Financial
assets and
liabilities
held for
trading
No
category
according
to IAS 39
Carrying
amount
Loans and
receivables
30,287
30,287
31,533
31,533
4,366
4,366
301,947
14,523
189,538
189,538
197,259
3,783
3,783
264,875
25,828
41,236
41,236
154,521
154,521
30,287
4,366
34,653
301,947
43,987
11,169
211,444
222,613
197,259
390,281
206,338
26,348
21,769
309,935
331,704
31,533
3,783
35,316
264,875
55,582
19
1,840
63,192
65,051
154,521
8
154,529
524,028
184,989
24,518
15,236
265,865
281,101
390,281
206,338
22,213
104,578
104,578
524,028
184,989
24,518
74,442
74,442
11,169
11,169
29,464
21,906
21,906
4,135
21,769
205,100
226,869
257
257
1,840
1,840
8
8
29,754
19
21,956
21,975
15,236
191,423
206,659
Consolidated Financial Statements 175
(b) Other disclosures for financial assets and
(37) Financial risk management
liabilities
For financial assets and liabilities measured at fair value,
measurement was based on generally accepted
valuation methods using observable market data.
With the exception of the financial liabilities presented in
the table below, the carrying amounts of the non-
derivative financial assets and liabilities were identical to
their fair values.
€ thousands
12/31/2009
12/31/2008
Carrying
amount Fair value
Carrying
amount Fair value
Liabilities due to
banks
390,281
394,839
524,028
527,325
The net gains and losses recognized in the income
statement (excluding financial derivatives subject to
hedge accounting) are presented in the following table:
€ thousands
2009
2008
Loans and receivables, financial liabilities
– 16,657
– 7,897
Available-for-sale financial assets
12,784
435,904
Financial assets and liabilities held for
trading
1,432
– 24,732
The net gains and losses in the categories of “loans and
receivables” and “financial liabilities” consisted mainly of
valuation allowances, net gains or losses on disposal,
and the result from the currency translation of these
financial assets and liabilities. The net gains or losses of
available-for-sale financial assets consisted mainly of the
gains and losses on the disposal of these financial
assets. The net gains and losses in the category of
“financial assets and liabilities held for trading” did not
include interest. The effects mostly resulted from
valuation changes and other expenses for financial
derivatives assigned to this category.
Relating to available-for-sale financial assets, positive
fair value changes of € 4 thousand (PY: € 8 thousand)
were recognized directly in equity. Profits of € 0 thousand
(PY: € 434,174 thousand) were transferred from equity
to income.
(a) Basic principles of financial risk management
With respect to its assets, liabilities, and planned
transactions, the Axel Springer Group is especially
exposed to risks relating to changes in interest rates,
foreign exchange rates, and stock market prices. The
task of financial risk management is to limit these market
risks by means of targeted measures. To this end,
selected derivative hedging instruments are employed,
depending on the assessment of the risk in question.
To reduce the default risk, hedging transactions are
conducted, as a rule, only with leading financial
institutions that have top-quality credit ratings.
The use of financial derivatives is governed by
appropriate guidelines of the Group. These guidelines
define the relevant responsibilities, permissible actions,
and reporting requirements, and prescribe the strict
separation of trading and back-office functions.
With regard to the market price risks of selected financial
assets and liabilities, compliance with prescribed loss
limits is monitored on a daily basis. In principle, the
effects of market price risks on the value of these
financial assets and liabilities can be assessed promptly
and, where applicable, the loss risks can be reduced.
Interest rate risk
(b)
To hedge the interest rate risk, the Group employs
interest rate derivatives such as interest rate swaps,
collars, forward rate agreements, and interest futures.
The goals and methods are defined in the internal
finance regulations. Market interest rate risks are
assessed by means of sensitivity analysis techniques.
Such techniques represent the effects of changes in
market interest rates on interest payments, interest
income and expenses, other components of income,
and where applicable, also on equity. The interest rate
sensitivity analysis is conducted on the basis of the
assumptions described below:
176 Annual Report 2009 Axel Springer AG
Changes in market interest rates of non-derivative fixed-
interest financial assets and liabilities have an impact on
income only when they are measured at fair value.
Therefore, all fixed-interest financial assets and liabilities
measured at amortized cost are not exposed to risks
resulting from interest rate changes.
Changes in market interest rates have an impact on the
income of non-derivative variable-interest financial assets
and liabilities when the interest payments are not
designated as underlying transactions for cash flow
hedges against interest rate risks, and are therefore
included in the calculation of the sensitivity analysis with
respect to income.
Changes in market interest rates of financial assets and
liabilities that have been designated as hedging
instruments in connection with a cash flow hedge
against cash flow variability resulting from changes in
interest rates have an impact on the accumulated other
comprehensive income, and are therefore included in the
sensitivity analysis with respect to equity.
Changes in market interest rates of interest rate
derivatives that are not designated as hedging
instruments have an impact on the financial result, and
are therefore included in the sensitivity analysis with
respect to income.
If the market interest rates had been 50 basis points
higher (lower) at the balance sheet date, the measured
value of interest rate derivatives at the balance sheet
date would have been € 4,514 thousand higher (€ 4,624
thousand lower). The changes in the valuation would
have been recognized directly in equity.
At the balance sheet date, an amount of € 0 (PY: € 128
million) of the variable-interest liabilities due to banks was
not hedged. In the annual average, 91 % (PY: 87 %) of
the liabilities have been hedged.
(c) Currency risk
The currency risks of the Axel Springer Group result
primarily from investments, financing activities, and
operating activities. Currency risks are hedged to the
extent that they have an impact on the Group’s cash
flows. Currency risks that do not have an impact on the
Group’s cash flows (i.e., those risks that result from the
currency translation of the assets and liabilities of foreign
subsidiaries to the Group’s reporting currency) are not
taken into account.
The individual Group companies conduct their business
predominantly in their functional currency. They are
exposed to operational currency risks only to an extent
that is insignificant for the Group. These currency risks
are hedged by means of forward exchange transactions,
which are based on the strategic currencies that have
been defined on the Group-wide level. The forward
exchange dates of such transactions are determined on
the basis of the expected cash flows.
At December 31, 2009, forward exchange transactions
existed for loans of foreign subsidiaries with a nominal
value of € 19,220 thousand. The fair value was € 334
thousand. At the balance sheet date of the prior year, no
forward exchange transactions were in the portfolio. Due
to the insignificant impact of currency risks on the
Group’s income and equity, a sensitivity analysis was not
conducted.
(d) Credit risk
Financial assets may be impaired if business partners do
not adhere to payment obligations. Especially trade
receivables resulting from operating activities are subject
to credit risk. Their maximum exposure to credit risk is
reflected in the total amount of trade receivables
presented in the statement of financial position.
Consolidated Financial Statements 177
A deferred payment of € 150,000 thousand plus interest
payable arising from the sale of investments in regional
newspapers is secured by a lien on one of the disposed
investments. The receivable is included in other assets
(non-current).
To reduce the credit risk, we conduct an active
management of receivables and credit checks of our
business partners. Investments in securities are made
only in instruments with first-class ratings. Appropriate
allowances, especially for doubtful trade receivables, are
formed to account for discernible default risks.
(38) Financial derivatives
(a) Financial derivatives designated as hedging
instruments
In 2009, designated hedging instruments were used in
particular to hedge against the interest rate risks of long-
term liabilities. The cash flows were hedged through
interest rate derivatives (interest rate swaps and collars).
The maturities and nominal amounts of the interest rate
derivatives were chosen to match the corresponding
tranches of the variable-interest loans (hedged items).
The interest rate derivatives were measured at fair value.
The changes in the fair value are recognized in
accumulated other comprehensive income until the
hedged item is realized. At December 31, 2009, loans in
the nominal amount of € 311,231 thousand (PY:
€ 311,711 thousand) were hedged. The fair value
measurement of the interest rate derivatives at the
balance sheet date yielded positive fair values of € 0
thousand (PY: € 19 thousand) and negative fair values of
€ 21,769 thousand (PY: € 15,236 thousand). Fair value
changes in the net amount of € – 15,475 thousand (PY:
€ – 10,986 thousand) after taxes were recognized in
accumulated other comprehensive income.
(b) Financial derivatives not designated as
hedging instruments
For interest rate management purposes, no financial
derivatives were employed without designation as a
hedging instrument. In the prior year, interest rate futures
were employed to hedge the fair values of interest rate
hedging instruments, from which € 8,988 thousand were
recognized to income.
(39) Relationships with related parties
Related parties are defined as those persons and
companies that control or can exert a significant
influence over the Axel Springer Group, or that are
controlled or subject to significant influence by the Axel
Springer Group. In particular, the members of the
Springer family, the companies controlled or subject to
significant influence by this family, the active members of
the Management Board and Supervisory Board of Axel
Springer AG, and the subsidiaries and associated
companies of the Axel Springer Group have been
defined as related parties. Prior year disclosures have
been adjusted due to an amended allocation scheme for
certain investments to related parties.
Besides the business relationships with the consolidated
subsidiaries, the following business relationships existed
with related parties:
€ thousands
Balance sheet
Loans
Receivables
Provisions
Liabilities
Income statement
Goods and services
supplied
Good and services
received
Financial result
Note 12/31/2009 12/31/2008
(i)
(ii)
(iii)
(iv)
2,483
2,083
43,987
55,582
5,435
4,699
26,349
24,519
2009
2008
(v)
74,804
79,160
(vi)
141,635
173,439
690
2,231
178 Annual Report 2009 Axel Springer AG
(i) At the balance sheet date, the loans to related parties
related to associates, in the amount of € 446 thousand
(PY: € 499 thousand), and other related companies in
the amount of € 2,037 thousand (PY: € 1,584
thousand).
(ii) Of the total receivables due from related parties, trade
receivables accounted for € 13,049 thousand (PY:
€ 17,435 thousand). Of this amount, € 4,738 thousand
(PY: € 4,422 thousand) was owed by associates and
€ 8,311 thousand (PY: € 13,013 thousand) by other
related companies. Valuation allowances were deducted
from the receivables stated above. At the balance sheet
date, allowances had been charged against receivables
due from associated companies in the amount of
€ 2,694 thousand (PY: € 2,074 thousand), and against
receivables due from other related companies in the
amount of € 17,590 thousand (PY: € 17,185 thousand).
Moreover, a receivable of € 29,464 thousand (PY:
€ 29,754 thousand) was owed by an associated
company in connection with the right to reimbursement
of pension obligations (cf. note (14)).
(iii) These are pension obligations owed to members of
the Management Board.
(iv) The liabilities due to related parties consisted of trade
payables in the amount of € 19,191 thousand (PY:
€ 22,784 thousand). Of this amount, € 4,469 thousand
(PY: € 7,568 thousand) was owed to associates and
€ 14,722 thousand (PY: € 15,217 thousand) to other
related companies.
(v) Goods and services provided to related companies
were mostly related to the distribution of newspapers
and magazines. Revenues of € 66,423 thousand (PY:
€ 70,415 thousand) were generated with associated
companies and revenues of € 8,381 thousand (PY:
€ 8,745 thousand) were generated with other related
companies in 2009.
(vi) The goods and services received from related
companies were primarily rendered by associates.
Of this amount, € 75,717 thousand (PY: € 113,335
thousand) mainly related to purchased publishing
products and printing services. In addition, services in
the amount of € 43,868 thousand (PY: € 42,928
thousand) were purchased from other related
companies.
A master agreement for the printing of magazines is in
effect with one associated company until December 31,
2019. Under this agreement, services in the amount of
€ 63 million (PY: € 73 million) were rendered for
companies of the Axel Springer Group in 2009.
In 2009, the fixed compensation of the members of the
Management Board of Axel Springer AG amounted to
€ 8,887 thousand (PY: € 8,237 thousand). The variable
compensation amounted to € 8,800 thousand (PY:
€ 4,891 thousand). The share-based compensation
granted to the Management Board of Axel Springer AG
(cf. note (13f)) gave rise to an imputed compensation
component of € 1,460 thousand (PY: € 406 thousand),
in addition to the compensation mentioned above. This
amount was recognized as personnel expenses. The
pension provisions were increased by an amount of
€ 736 thousand in fiscal year 2009 (PY: € 897
thousand).
The compensation of the members of the Supervisory
Board amounted to € 2,425 thousand in fiscal year 2009
(PY: € 2,725 thousand). This figure included variable
compensation of € 425 thousand (PY: € 725 thousand).
A Supervisory Board member received a compensation
of € 125 thousand (PY: € 125 thousand) for his services
as an author.
Consolidated Financial Statements 179
The compensation of the members of the Management
and Supervisory Board is described in detail in the
compensation report, which is part of the notes to the
consolidated financial statements. The compensation
report is included in the section “Declaration on
Corporate Governance pursuant to Section 289a HGB
and Corporate Governance Report”.
An amount of € 3,856 thousand (PY: € 2,140 thousand)
was paid to former Management Board members and
special directors and their survivors. A total amount of
€ 26,082 thousand (PY: € 25,599 thousand) was
allocated to the provisions for pension obligations.
(40) Contingent liabilities
At December 31, 2009, contingent liabilities from
guarantees existed in the amount of € 33,268 thousand
(PY: € 20,746 thousand). In addition, obligations from an
acquisition-related contingent consideration existed in
the amount of € 2,415 thousand (PY: € 0 thousand), but
we consider their occurrence as unlikely. Furthermore,
property, plant, and equipment in the amount of
€ 98,053 thousand (PY: € 104,529 thousand) had been
pledged as security for liabilities at December 31, 2009.
(41) Contingent assets
Contingent receivables were due from KirchMedia GmbH
& Co KGaA i.L. in the amount of € 274 million (PY: € 280
million (cf. note (11)).
(42) Other financial commitments
The other financial commitments broke down as follows:
€ thousands
12/31/2009 12/31/2008
Purchase commitments for
- intangible assets
- property, plant and equipment
- inventories
8,359
7,565
9,921
6,488
5,412
11,926
Future payments under operating leases
71,051
93,693
Long-term purchase obligations
285,226
292,083
Other financial commitments
382,122
409,602
The long-term purchase obligations resulted from paper
supply contracts.
The total future payment obligations under operating
leases at December 31, 2009 are broken down in the
following table:
€ thousands
Due in up
to one year
Due in one
to five
years
Due in
more than
five years
Total
Future
payments
under
operating
leases
24,131
44,031
Total
24,131
44,031
2,889
2,889
71,051
71,051
(43) Events after the balance sheet date
There were no significant events after the balance sheet
date.
180 Annual Report 2009 Axel Springer AG
(44) Companies included in the consolidated
financial statements
Share-
hold-
ing
in %
Held via
No.
Other
dis-
closures
Fully consolidated companies
Germany
Axel Springer Aktiengesellschaft, Berlin
AS Online Beteiligungs GmbH, Berlin
AS Osteuropa GmbH, Berlin
AS TV-Produktions- und Vertriebsgesellschaft
mbH, Hamburg
ASV Direktmarketing GmbH, Berlin
Axel Springer Asia GmbH, Hamburg
Axel Springer Auto-Verlag GmbH, Hamburg
Axel Springer Digital TV GmbH, Berlin
Axel Springer Digital TV Guide GmbH, Berlin
Axel Springer Financial Media GmbH, Munich
Axel Springer Media Logistik GmbH, Berlin
Axel Springer Mediahouse Berlin GmbH,
Berlin (formerly Axel Springer Mediahouse
München GmbH, Munich)
Axel Springer Medien Accounting Service
GmbH, Berlin
Axel Springer Services & Immobilien GmbH,
Berlin
Axel Springer TV NEWS GmbH, Hamburg
Axel Springer TV Productions GmbH,
Hamburg
Axel Springer Venture GmbH (formerly AS
Venture GmbH), Berlin
'Axel Springer Verlag' Beteiligungsgesellschaft
mbH, Berlin
Axel Springer Verlag Vertriebsgesellschaft
mbH, Hamburg
B.Z. Media GmbH, Berlin
B.Z. Ullstein GmbH, Berlin
Bergedorfer Buchdruckerei von Ed. Wagner
(GmbH & Co.), Hamburg
BERLINER WOCHENBLATT Verlag GmbH,
Berlin
BILD digital GmbH & Co. KG, Berlin
Buch- und Presse-Großvertrieb Hamburg
GmbH & Co. KG, Hamburg
Commerz-Film GmbH, Berlin
comparado GmbH, Lüneburg
Computerbild Online Dienstleistungs-GmbH,
Hamburg
DW-Holding GmbH, Berlin
eprofessional GmbH, Hamburg
gamigo AG, Hamburg
Gofeminin.de GmbH, Cologne (formerly
Gofeminin.de GmbH, Berlin)
Idealo Internet GmbH, Berlin
Immonet GmbH, Hamburg
ims Internationaler Medien Service GmbH &
Co. KG, Hamburg
Niendorfer Wochenblatt Verlag GmbH & Co.
KG, Hamburg
"Sächsischer Bote" Wochenblatt Verlag
GmbH, Dresden
Schwartzkopff TV-Productions GmbH & Co.
KG, Hamburg
Smarthouse Media GmbH, Karlsruhe
Sport-B.Z. GmbH, Berlin
StepStone Group (3 domestic companies)
Transfermarkt GmbH & Co. KG, Hamburg
Ullstein Gesellschaft mit beschränkter
Haftung, Berlin
VISION MEDIA Holding GmbH, Hamburg
VVDG Verlags- und
Industrieversicherungsdienste GmbH, Berlin
wallstreet:online AG, Berlin
wallstreet:online capital AG, Berlin
WBV Direktzustell-GmbH, Hamburg
WBV Wochenblatt Verlag GmbH, Hamburg
ZANOX.de AG, Berlin
ZZ-Kurier Gesellschaft für Zeitungs- und
Zeitschriftenvertrieb mbH, Hamburg
Other countries
Amiado Group AG (formerly Verlag Sport
Wochenzeitung AG), Zurich/Switzerland
Anima Publishers, s.r.o., Zlin/Czech Republic
-
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
69.8
100.0
74.9
100.0
52.5
52.5
100.0
82.4
74.9
100.0
55.0
100.0
100.0
100.0
88.0
100.0
100.0
51.0
100.0
100.0
100.0
75.0
75.1
100.0
100.0
52.5
100.0
99.8
74.9
-
1
1
1
1
1
1
1
1
1
1
1
1
1
16
1
1
1
1
21
43
1
49
1
1
1
33
1
17
50
17
56
17
1
1
49
49
16
1
43
1, 79
24
18
1
18
10
10
49
1
17
1
66
64
(1) (2)
(1) (2)
(1) (2)
(1) (2)
(1) (2)
(1) (2)
(1) (2)
(1) (2)
(1) (2)
(1) (2)
(1) (2)
(1)
(3)
(1)
(3)
(3)
(1) (2)
(1) (2)
(4)
(1) (2)
(3)
(3)
(1)
(3)
(4)
(3)
(1) (2)
(1) (2)
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Share-
hold-
ing
in %
Held via
No.
AS-NYOMDA Kft, Kecskemét/Hungary
auFeminin.com Productions SARL,
Paris/France
auFeminin.com S.A., Paris/France
Avivum AG, Zurich/Switzerland
Axel Springer - Budapest Kiadói Kft,
Budapest/Hungary
Axel Springer - Magyarország Kft,
Tatabánya/Hungary
Axel Springer Editions S.A.S., Levallois-
Perret/France
Axel Springer España S.A., Madrid/Spain
Axel Springer France S.A.S., Levallois-
Perret/France
"Axel Springer Polska" Sp. z o.o.,
Warsaw/Poland
Axel Springer Praha a.s., Prague/Czech
Republic
"Axel Springer Russia" Geschlossene
Aktiengesellschaft, Moscow/Russia
Axel Springer Switzerland AG,
Zurich/Switzerland
Digital Window Limited, London/Great Britain
Handelszeitung und Finanzrundschau AG,
Zurich/Switzerland
Les Publications Grand Public S.A.S.,
Levallois-Perret/France
Marmiton SAS, Paris/France
Népújság Kft, Békéscsaba/Hungary
PartyGuide.ch AG, Hünenberg/Switzerland
Petöfi Lap- és Könyvkiadó Kft,
Kecskemét/Hungary
Shanghai Springer Advertising Company Ltd.,
Shanghai/China
Shanghai Springer Distribution Company Ltd.,
Shanghai/China
Smart Adserver Limited, London/Great Britain
SmartAdServer SAS, Paris/France
soFeminine.co.uk Limited, London/Great
Britain
StepStone ASA, Oslo/Norway (incl. 38 foreign
companies of StepStone Group)
Students.ch AG (formerly Amiado AG),
Zurich/Switzerland
Viviana Investments Sp. z o.o.,
Warsaw/Poland
zanox B.V., Amsterdam/Netherlands
ZANOX Hispania SL, Madrid/Spain
zanox Inc., Chicago/USA
zanox ltd., London/Great Britain
zanox SAS, Paris/France
zanox SRL, Milan/Italy
zanox we create partners AB,
Stockholm/Sweden
ZÖLD ÚJSÁG Tömegkommunikációs és Kiadói
Zrt, Budapest/Hungary
Fully consolidated special purpose entities
Germany
Axel-Springer-Immobilien-Fonds-I Dr.Rühl &
Co.KG, Düsseldorf
Axel-Springer-Immobilien-Fonds-II-
Produktionszentrum Dr.Rühl & Co.KG,
Düsseldorf
Axel-Springer-Immobilien-Fonds-III- Ostflügel
Dr.Rühl & Co.KG, Düsseldorf
Investments accounted for using the equity
method
Germany
buecher.de GmbH & Co. KG, Augsburg
Cora Verlag GmbH & Co. KG, Hamburg
Jahr Top Special Verlag GmbH & Co. KG,
Hamburg
PRINOVIS Ltd. & Co. KG, Hamburg
ZertifikateJournal AG, Veitshöchheim
Other countries
Editions Mondadori Axel Springer (EMAS)
S.E.N.C., Paris/France
INFOR BIZNES Sp. z o.o., Warsaw/Poland
93.5
82.4
82.4
99.8
92.9
93.5
100.0
100.0
100.0
100.0
100.0
100.0
99.8
26.3
100.0
100.0
82.4
94.0
99.8
94.0
100.0
100.0
82.4
82.4
82.4
100.0
100.0
100.0
52.5
52.5
52.5
52.5
52.5
52.5
52.5
93.5
--
--
--
33.3
50.0
50.0
25.1
33.3
50.0
49.0
59
56
2
52
1
1
62
1
1
1
1
3
1
29
1
62
56
18
52
18
6
6
56
56
56
1
68
63
50
50
50
50
50
50
50
59
--
--
--
1
18
18
1
1
62
63
Other
dis-
closures
(4)
(4)
(4)
(4)
No.
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
Additional disclosures:
(1) Control and profit transfer agreement with the parent company.
(2) The company has exercised the exemption options of Section 264 (3) HGB.
(3) The company has exercised the exemption options of Section 264b HGB.
(4)
Included for the first time in fiscal year 2009.
Consolidated Financial Statements 181
(45) Declaration of Conformity with the German
(46) Responsibility statement
Corporate Governance Code
Axel Springer AG published the Declaration of
Conformity with the German Corporate Governance
Code issued by the Management Board and Supervisory
Board in accordance with Section 161 of the German
Stock Corporations Act (AktG) on the company’s Web
site www.axelspringer.de → Investor Relations →
Corporate Governance, where it is permanently available
to shareholders. The Declaration of Conformity is also
printed in the Corporate Governance section of this
Annual Report.
To the best of our knowledge, and in accordance with
the applicable reporting principles, the consolidated
financial statements give a true and fair view of the
assets, liabilities, financial position, and profit or loss of
the Group, and the Group management report includes
a fair review of the development and performance of the
business and the position of the Group, together with a
description of the principal opportunities and risks
associated with the expected development of the Group.
Berlin, February 23, 2010
Axel Springer AG
(Dr. Mathias Döpfner)
(Rudolf Knepper)
(Lothar Lanz)
(Dr. Andreas Wiele)
182
Boards
Supervisory Board
The Supervisory Board was composed of the following persons in the 2009 fiscal year:
Name, regular occupation
Seats on other legally mandated
Supervisory Boards
Seats on comparable boards
in Germany and abroad
Dr. Giuseppe Vita
Chairman of the Supervisory Board
Axel Springer AG
Deutz AG (Chairman, until July 2009)
Dussmann Verwaltungs AG (since April 2009)
Medical Park AG (since February 2009)
Allianz S.p.A., Italy (Vice Chairman of the Board of Directors)
Humanitas S.p.A., Italy (Board of Directors)
Barilla S.p.A., Italy (Board of Directors)
Gruppo Banca Leonardo, Italy (Chairman of the Board of Directors)
Dr. h. c. Friede Springer
Vice Chairwoman of the Supervisory Board
Axel Springer AG
Alba Berlin AG
Deutsche Bank AG (Advisory Board)
Dr. Gerhard Cromme
Chairman of the Supervisory Board
ThyssenKrupp AG
Allianz SE
Siemens AG (Chairman)
ThyssenKrupp AG (Chairman)
Compagnie de Saint Gobain, France (Board of Directors)
Oliver Heine
Attorney at law and partner in the
law firm Oliver Heine & Partner
Klaus Krone
Member of the Supervisory Board
Axel Springer AG
Prof. Dr. Wolf Lepenies
University Professor
Michael Lewis
Investment Manager
borawind AG, Switzerland (Chairman of the Board of Directors until
July 2009)
OIC 07178 Limited, Great Britain (Executive)
Oceana Investment Corporation Limited, Great Britain (Chief
Executive)
Oceana Concentrated Opportunities Fund Limited, Great Britain
(Non-Executive)
Oceana Fund Managers (Jersey) Limited, Great Britain (Non-
Executive)
Oceana Capital Partners LLP, Great Britain (Executive, since October
2008)
Oceana Investment Partners LLP, Great Britain (Executive, since
February 2009)
United Trust Bank Limited, Great Britain (Non-Executive)
UTB Partners Limited, Great Britain (Non-Executive)
Cheyne Capital Management Limited, Great Britain (Non-Executive)
Foschini Limited, South Africa (Non-Executive)
Strandbags Group (Pty) Limited, Australia (Executive)
Strandbags Holdings (Pty) Limited, Australia (Executive)
ProChon Biotech Limited, Israel (Non-Executive)
Peltours Limited, Israel (since September 2009, registration pending)
Dr. Michael Otto
Chairman of the Supervisory Board
Otto GmbH & Co. KG
Brian M. Powers
CEO of investment group
Hellman & Friedman LLC
Otto GmbH & Co. KG (Chairman)
FORUM Grundstücksgesellschaft mbH (Advisory Board)
Robert Bosch Industrie und Treuhand KG (Partner)
Artisan Partners Limited Partnership, USA (Advisory Board)
Getty Images, Inc., USA (Board of Directors)
Boards 183
Management Board
The following persons served on the Management Board in the 2009 fiscal year:
Seats on other legally mandated
Supervisory Boards
Seats on comparable boards
in Germany and abroad
Management Board member
Dr. Mathias Döpfner
Chairman and Chief Executive Officer
Head of Subscription Newspapers and
International
Journalist
Rudolf Knepper
Vice Chairman
Head of Printing, Logistics, and HR
Master’s degree in engineering and in
business/engineering
Lothar Lanz
Chief Operating Officer and Chief Financial
Officer
(since May 2009)
Master’s degree in business administration
Dr. Andreas Wiele
Head of BILD Division and Magazines
Lawyer
ZANOX.de AG (Supervisory Board, Chairman,
until August 2009)
Steffen Naumann
Chief Operating Officer and Chief Financial
Officer
(until April 2009)
Master’s degree in business administration
and master’s degree in economics
Odeon Film AG (Chairman of the Supervisory
Board, until March 2009)
dpa Deutsche Presse Agentur GmbH (Supervisory Board)
Leipziger Verlags- und Druckereigesellschaft mbH & Co. KG
(Advisory Board, until April 2009)
B.Z. Ullstein GmbH (Advisory Board)
Time Warner Inc., USA (Board of Directors)
RHJ International S.A., Belgium (Supervisory Board)
Axel Springer Schweiz AG, Switzerland (Board of Directors)
auFeminin.com S.A., France (Supervisory Board, until August 2009)
PRINOVIS Ltd., Great Britain (Board of Directors)
esmt European School of Management and Technology GmbH
(Supervisory Board, since July 2009)
Axel Springer International Finance B.V., Netherlands
(Supervisory Board, since May 2009)
Independent News & Media PLC, Ireland (Board of Directors,
since November 2009)
Jahr Top Special Verlag GmbH & Co. KG (Advisory Board)
B.Z. Ullstein GmbH (Advisory Board)
dpa Deutsche Presse Agentur GmbH (Supervisory Board,
since January 2010)
auFeminin.com S.A., France (Supervisory Board)
StepStone ASA, Norway (Supervisory Board, since October 2009)
esmt European School of Management and Technology GmbH
(Supervisory Board, until April 2009)
Axel Springer International Finance B.V., Netherlands
(Supervisory Board, until April 2009)
184
Glossar
Affiliate Sales partner or agent that receives a commis-
sion for advertising sales.
Associated companies Companies in which an inves-
ting company holds a minority interest of at least 20 %
and has the ability to exert significant influence over the
financial and operating policies of the investee company
by participating in the corresponding decision proces-
ses. In the Axel Springer Group, associated companies
are included in the consolidated financial statements by
application of the equity method.
Cash and cash equivalents Cash on hand and cash in
certain bank accounts of a company, plus other resour-
ces such as marketable securities, sight deposits and
term deposits, which can be liquidated on a short-term
basis.
Classified ads Small ads that generally appear in daily
newspapers and are arranged by specific categories,
such as jobs, property and cars, for example.
comScore (Media Matrix) Market research firm that
measures the be-havior of Internet users, in order to
determine the reach, for example.
Consolidation group All the companies included in the
consolidated financial statements, by way of full con-
solida-tion or at equity.
Content portal Website containing editorial content, not
just advertising or navigation pages.
Contingent purchase price liabilities Liabilities arising
from future purchase price adjustments (earn-out
agreements) and from option rights for the purchase of
minority shares.
Copy price Retail sales price of a given publication.
Cross-media concept Content-related, creative and
formal networking of different media channels and adver-
tising vehicles with the goal of achieving optimal adverti-
sing success by means of a multi-channel approach.
Derivatives in cash flow hedges Financial instruments
used to hedge the risk of future variations in cash flows,
due to changes in interest rates or exchange rates, for
example.
Earn-out agreement Agreement under which the pay-
ments by the buyer to the seller are deferred to a later
point in time; depending on the business performance of
the purchased company.
Electronic Program Guide Digital version of a printed
magazine guide for TV programs and radio programs,
which is integrated into the reception device.
Equity method The equity method is a method of ac-
counting for associated companies in the consolida-ted
financial statements under which changes the net value
of the company are added to or deducted from the
acquisition cost of the investment.
External revenues Revenues resulting from transac-
tions with companies and persons that are not part of
the consolidati-on group.
Fair value Amount at which an asset can be exchanged
or a liability settled between two knowledgeable, willing
parties in an arm’s length transaction. Fair value is de-
termined with reference to market prices (such as stock
market prices, for example), if available, or if not, on the
basis of reference transactions or valuation models.
Financial derivatives Financial instruments, the value of
which is derived from the value of an underlying (e.g.,
security, interest rate, currency, loan). Financial deriva-
tives are used for hedging currency and interest rate
risks, for example.
Glossar 185
IFRS (International Financial Reporting Standards) Ac-
counting rules issued by the IASB (International Accoun-
ting Standards Board).
Reach Percentage of a target group that is reached at
least once by an advertising vehicle or combination of
advertising vehicles.
Interest rate swap Contractually defined swap transac-
tion. In an interest rate swap, the interest payments
under a variable interest rate are exchanged for with
those under a fixed interest rate, or vice versa. The party
paying interest under the fixed interest rate is protected
against rising interest rates (loan protection), while the
party being paid interest under a fixed interest rate is
protected against falling interest rates (investment pro-
tection).
IVW (Informationsgemeinschaft zur Feststellung der
Verbreitung von Werbeträgern). This German organiza-
tion tracks the reach of print media and online offerings.
Job printing Acceptance of third-party printing orders
with the goal of utilizing idle capacities in order to enhan-
ce profitability.
Newsroom An editorial center where all journalistic con-
tent is collected, processed and produced for various
media channels, e.g. online, TV, print and mobile services.
Portal Website covering a wide range of different sub-
jects that help users to navigate the internet. Special-in-
terest portals such as car or book portals try to cover the
complete range of their target group’s interests by way
of a common entrance platform.
Pro-forma revenues Revenues that comprise revenues
from business combinations prior to the date of initial
recognition in the consolidated financial statements.
Purchase price allocation Process in which the pur-
chase price of a business combination is allocated to the
fair values of all identifiable assets and liabilities.
Registered shares of restricted transferability Reg-
istered shares which can be transferred only with the
consent of the respective stock corporation.
Search term marketing Type of marketing geared to
specific target groups, using search engines. The cus-
tomer of such a service defines the search terms which,
when entered by the online user, will trigger the place-
ment of the customer’s banner or advertising message
on the search engine’s web page.
Special-purpose entities Companies that are formed
for the purpose of fulfilling a specified narrowly defined
purpose. A special-purpose entity must be consolidated
if the Axel Springer Group controls the special-purpose
entity in substance or if, in substance, the majority of the
risks and rewards from the special-purpose entity’s
operations lie with Axel Springer. For this purpose, it is
not required that the Axel Springer Group holds an equity
interest in the special-purpose entity or vice versa.
Success-based marketing Form of advertising under
which an Internet sales partner (publisher) receives a
share of the proceeds of every successfully completed
transaction (e.g., sale of a product or sign-up for a news-
letter), in the form of a commission.
Tabloid-Format Small-size format for newspapers.
Unique visitors Number of persons who have visited a
website at least once during a specified period of time. It
corresponds to the net reach.
Visits Connected series of usage events (visits). After an
interruption of 30 minutes, a new visit is counted. A usa-
ge event is defined as a technically successful page load
by an Internet browser from a specific online offering.
Financial Calendar
March 10, 2010
Annual Report, annual financial statements press
conference, analyst/investor teleconference, Berlin
April 23, 2010
Annual shareholders’ meeting, Berlin
May 11, 2010
Quarterly financial report at March 31, 2010
August 5, 2010
Quarterly financial report at June 30, 2010
November 10, 2010
Quarterly financial report at September 30, 2010
Impressum
Address
Axel Springer AG
Axel-Springer-Straße 65
10888 Berlin
Phone: +49 (0) 30 25 91-0
Investor Relations
ir@axelspringer.de
Phone: +49 (0) 30 25 91-7 74 21/-7 74 25
Fax: +49 (0) 30 25 91-7 74 22
Corporate Communications
information@axelspringer.de
Phone: +49 (0) 30 25 91-7 76 60
Fax: +49 (0) 30 25 91-7 76 03
Design
Axel Springer AG
Corporate Communications
Photos
Daniel Biskup (p. 2, p. 6–7), Matti Hillig (p. 7, p. 08 ff)
ullstein bild –
AP (p. 129), Axel Springer AG (p. 132), Lehnartz (p. 116),
Imagno (p. 122), ullstein bild (p. 124), PAI-Foto.pl (p. 120),
Reuters (p. 126, p. 130), WTT/SIPA (p. 119)
The Annual Report and up-to-date information about
Axel Springer are also available on the Internet at
www.axelspringer.com
The English translation of the Axel Springer AG annual
report is provided for convenience only. The German
original is definitive.