Annual Report
15 Contents
4 Foreword
81 Report of the Supervisory Board
6 Executive Board
88 Consolidated Financial Statements
8 The Axel Springer share
10 Combined Management Report
12 Fundamentals of the Axel Springer Group
22 Economic report
39 Economic position of Axel Springer SE
43 Events after the reporting date
44 Report on risks and opportunities
57 Forecast report
62 Disclosures and explanatory report of the
Executive Board pursuant to takeover law
67 Corporate Governance Report
89 Responsibility Statement
90 Auditor’s Report
91 Consolidated Statement of Financial Position
93 Consolidated Statement of
Comprehensive Income
94 Consolidated Statement of Cash Flows
95 Consolidated Statement of Changes in Equity
96 Consolidated Segment Report
97 Notes to the Consolidated
Financial Statements
169 Boards
Group Key Figures
Continuing operations
in € millions
Group
Total revenues
Digital media revenues share1)
EBITDA2)
EBITDA margin2)
Digital media EBITDA share1)
EBIT3)
Net income
Net income, adjusted3)
Segments4)
Revenues
Classified Ad Models
Paid Models
Marketing Models
Services/Holding
EBITDA2)
Classified Ad Models
Paid Models
Marketing Models
Services/Holding
Liquidity and financial position
Free cash flow5)
Capex6)
Total assets7) 8)
Equity ratio7) 8)
Net liquidity/debt7) 9)
Share-related key figures10)
Earnings per share, adjusted (in €)3) 11)
Earnings per share (in €)
Dividend (in €)12)
Closing price (in €)
Market capitalization as of December 3113)
Change yoy
2015
2014
8.5 %
3,294.9
3,037.9
61.7 %
55.3 %
10.2 %
559.0
13.8 %
29.2 %
11.2 %
47.1 %
– 2.2 %
10.7 %
– 29.4 %
40.1 %
– 11.2 %
– 17.4 %
−
17.0 %
69.6 %
449.0
304.6
279.3
507.1
16.7 %
62.4 %
394.6
235.7
251.2
753.1
512.0
1,582.2
1,617.5
878.9
80.7
305.0
223.2
88.0
– 57.1
794.1
114.4
217.7
251.4
106.5
– 68.5
244.1
– 95.9
22.8 %
299.8
−
– 131.4
13.9 %
6,504.7
5,708.5
38.6 %
43.9 %
−
– 1,066.6
– 667.8
10.3 %
46.5 %
0.0 %
2.5 %
2.22
2.50
1.80
2.01
1.71
1.80
51.34
50.08
11.8 %
5,539.3
4,954.9
Average number of employees
7.9 %
15,023
13,917
1) Based on the operating business (without the segment Services/Holding).
2) Adjusted for non-recurring effects, see also the information in the notes to the consolidated financial statements under Note (32).
3) Adjusted for non-recurring effects and amortization and impairments from purchase price allocations.
4) An adjustment of the segment allocation was performed during the reporting year, see also the information in the notes to the consolidated financial statements under Note (31).
5) Cash flow from operating activities minus capital expenditures, plus cash inflows from disposals of intangible assets and property, plant and equipment.
6) Capital expenditures on intangible assets, property, plant and equipment, and investment property.
7) As of December 31, 2015 and December 31, 2014, respectively.
8) An adjustment was performed during the reporting year 2014, see also the information in the notes to the consolidated financial statements under Note (4).
9) In 2015, without the purchase price received in connection with real estate sales amounting to € 67.5 million, attributable to the plan assets created for our pension obligations.
10) Quotations based on XETRA closing prices.
11) The earnings per share (basic/diluted) adjusted for non-recurring effects, amortization and impairments from purchase price allocations were calculated on the basis of average
weighted shares outstanding in the reporting period (99.7 million; PY: 98.9 million).
12) Dividend proposal for the financial year 2015.
13) Based on shares outstanding at the closing price, excluding treasury shares (107.9 million; PY: 98.9 million).
Foreword
by Stefan Zweig:
"For young people, rest is always unrest itself."
Our company will celebrate its 70th anniversary this year.
By no means young. However, there was some unrest
last year. And it will be the same this year. For us,
change is a permanent state. Innovation is our tradition.
The biggest profit contribution of all segments was once
more provided by our Classified Ad Models. They be-
came the economic backbone of the company. In the
financial year, the segment expanded through strong
organic growth and has been strengthened by strategic
acquisitions. Thus, revenues of the Classified Ad Models
increased by 47 percent and EBITDA increased by 40
percent in comparison to the prior year.
Driving force of the strong growth was the StepStone-
Group, which continued its success story particularly in
Germany, Great Britain and Belgium. Furthermore,
SeLoger profits from its strong market position in France,
as well as Immobweb in Belgium. Through the merger of
Immowelt and Immonet, we created a heavyweight in the
German real estate market and set the precondition for
further growth. The Israeli classified ads portal, Yad2,
has further improved its position by acquiring the job
portal, Drushim. Our strong positions in the classified ads
segments have allowed our brands to achieve moderate
price rises. Within the Marketing Models segment, the
Bonial-Group has continued its promising growth path in
the US market with Retale.
Plus, 2015 was a key year for our journalistic content. We
had announced we would particularly invest in English-
speaking brands. Acquiring Business Insider, one of the
media brands with the highest reach worldwide, marked
the start of our most important move into the US market.
A series of associated acquisitions added to our early
phase investments in the USA, in particular, investing in
digital lifestyle platform Thrillist, news offering Mic.com
and virtual reality company Jaunt VR as well as increas-
ing our share in New York video news company NowThis.
4
Annual Report 2015
Axel Springer SE
Foreword
We also announced our partnership with Samsung: Under
the upday brand, Axel Springer, in cooperation with one of
the world's largest manufacturer of mobile devices, is
developing a platform for aggregated news content. Soon,
upday will be prominently pre-installed on Samsung's
smartphones– in Germany, the UK, Poland and France.
Last year our journalistic brands once again attracted
attention:
The N24 article "At the border – 24 hours at the refugee
crisis hotspots" shows how the influx of hundreds of
thousands of people is changing Europe. This article was
awarded the German Television Award (Deutscher
Fernsehpreis).
POLITICO Europe, which Axel Springer has been operat-
ing since early 2015 as part of a joint venture, was rec-
ognized as the most-read publication by European deci-
sion-makers.
BILD received international renown from its in-depth inter-
view with Russian President Vladimir Putin. Bild.de also
proved innovation leadership with a unique 360° virtual
reality video reportage from the Iraqi front in Sindschar.
These journalistic successes fuel the rising number of
digital subscribers to WELT and BILD. This number had
risen by more than 22 percent on the prior year in Q4
2015. At the end of the year we had 384,000 digital
subscriptions.
In Addition, our company acquired the 15 percent share
in the online classified ads business formerly owned by
strategic growth investor General Atlantic in return for
newly issued Axel Springer shares, in order to benefit
fully from the successes in this segment. The fact that
General Atlantic exchanged its equity stake in the Classi-
fied Ad Models segment for shares in the company
proves the attractiveness of Axel Springer as a whole.
In addition to important investments in our core seg-
ments, Axel Springer was able to realize attractive in-
flows, particularly through the sale of shares in fitness
data platform Runtastic and the sale of shares in the
Indian car portal CarWale closed in January 2016.
Overall our digital business achieved 62 percent of total
revenues last year. We generated 70 percent of our
EBITDA online. And 80 percent of advertising revenues
came from the marketing of digital products.
With an EBITDA of € 559 million we have slightly outper-
formed our forecasts. Dividends payout has reached a
record amount of € 194 million. One thing is clear: We
will not be satisfied with this but will instead use our
economic strength for investments in future growth and
further improvements in our results. We believe in our
core business, journalism: Digital media brands inspire a
discerning young generation and are becoming the new
publishers of our time. This offers enormous opportuni-
ties. We are therefore looking forward to the future with
great confidence.
Thank you kindly for the trust and confidence you have
placed in our company.
Sincerely yours,
Mathias Döpfner
5
Executive Board
Dr. Mathias Döpfner
Jan Bayer
Chairman
President Paid Models
Born 1963, journalist.
Career milestones:
Frankfurter Allgemeine Zeitung,
Gruner+Jahr; Chief Editor Wochen-
post, Hamburger Morgenpost,
and DIE WELT. Member of the
Executive Board since 2000,
Chairman since 2002.
Born 1970, Master’s degree in
media studies. Career mile stones:
Süddeutsche Zeitung; Publisher
Volksstimme, Magdeburg; Publisher
Süddeutsche Zeitung; Chairman of
the Executive Board of the WELT
Group. Member of the Executive
Board since 2012.
6
Executive Board
Dr. Julian Deutz
Dr. Andreas Wiele
Chief Financial Officer
Born 1968, Master’s degree in
business administration. Career
milestones: OC&C Strategy
Consultants; head of M&A/Investor
Relations Pixelpark AG; CFO
Venturepark AG; CFO Steilmann-
Gruppe; Axel Springer International;
Head of Group Controlling/Corporate
Development Axel Springer SE.
Member of the Executive Board
since 2014.
President Marketing and
Classified Ad Models
Born 1962, lawyer.
Career milestones: Editor,
Hamburger Morgenpost; Head
of Publishing Capital and Geo,
Gruner+Jahr, Paris/France;
Execu tive Vice President and Chief
Operating Officer of Gruner+Jahr
USA Publishing, New York.
Member of the Executive Board
since 2000.
7
The Axel Springer share
Annual Report 2015
Axel Springer SE
The Axel Springer share
Eventful year on the Stock Exchange
in 2015
The stock market has seen an eventful year combined
with high volatility at times. The relevant indices ended
the year in positive territory. While the German DAX index
ended the financial year with growth of 6.9 %, the MDAX
index in which the Axel Springer share is also listed in-
creased by 19.7 %. At the European level, the media
sector index, DJ EuroStoxx Media, rose by 7.1 %. The
Axel Springer share price performed well, particularly
during the first half of the year when it reached a new
record level of € 59.04 in April, but it was unable to
sustain this by the end of the year and, with a figure of
€ 51.34, ended up only slightly in positive territory
(+2.5 %). Market capitalization was approx. € 5.5 billion
at the end of 2015.
Performance Axel Springer Share
Axel Springer
1)
DAX
MDAX
1)
DJ EuroStoxx Media
1)
Investor relations
The company’s Management and Investor Relations team
presented the company and its strategy at investor confer-
ences and road shows in Europe and the United States on
a total of 24 days. In addition, we maintained an ongoing
dialog with investors, analysts, and other capital market
players in numerous discussions and telephone confer-
ences throughout the year. As usual, the telephone confer-
ences held in connection with the publication of our finan-
cial reports were broadcast live on the Internet as audio
webcasts, after which they remained available to users of
our website. The eighth annual Capital Markets Day for
analysts, institutional investors, and bank representatives
was held at our company headquarters in Berlin on De-
cember 9, 2015. This event was broadcast live as a video
webcast and is available as a download from our website,
together with the presentations shown at the event. Finally,
we inform you regularly of current events in the Investor
Relations section of our website at www.axelspringer.de.
Closing price: € 51.34
Share Information
€
2015
2014
Change
65
60
55
50
45
01/01/15
12/31/15
1)
Indexed on the year-end share price of Axel Springer SE as of December 31, 2014.
Analyst coverage
The number of analysts publishing ratings of the Axel
Springer share decreased from 21 to 19 during financial
year 2015. Currently, four brokers are expressing a “buy”
recommendation, thirteen recommend “hold/neutral” and
two analyst firms recommend “sell/underweight”. You
can find the latest recommendations and share price
targets in the Investor Relations section of our website at
www.axelspringer.de.
Earnings per share (adjusted)1) 2)
Earnings per share1)
Dividend3)
Total dividend payout
(€ millions)
Year-end share price
Highest price
Lowest price
Market capitalization
(€ millions)4) 5)
Daily traded volume
(Ø, € thousands)
Dividend yield3) 5)
2.22
2.50
1.80
194.2
51.34
59.04
46.46
2.01
1.71
1.80
178.1
50.08
10.3 %
46.5 %
0.0 %
9.0 %
2.5 %
51.27
15.2 %
41.17
12.8 %
5,539.3
4,954.9
11.8 %
8,386.7
6,574.4
27.6 %
3.5 %
3.6 %
-
-
Total yield per share per year6)
6.1 %
11.1 %
1) Continuing operations.
2) Adjusted for non-recurring effects and amortization and impairments from pur-
chase price allocations; calculated on the basis of average weighted shares out-
standing in the reporting period (99.7 million; PY: 98.9 million).
3) Dividend proposal for the financial year 2015.
4) Quotations based on year-end share price.
5)
Based on shares outstanding at the closing price, excluding treasury shares
(107.9 million; PY: 98.9 million).
6) Share price development plus dividend payment.
8
36.5 %
2.8 %
5.1 %
8.3 %
Annual Report 2015
Axel Springer SE
The Axel Springer share
Shareholder Structure
Axel Springer Gesellschaft für Publizistik
General Atlantic
Dr. h.c. Friede Springer
Other shareholdings
Dr. Mathias Döpfner
To those employees who opted to convert half their prof-
it-sharing bonus or performance-dependent compensa-
tion, Axel Springer contributed an additional 20 %, and to
those employees who opted to convert the full amount,
the company contributed an additional 30 %. The re-
quired holding period is four years. The Axel Springer
shares used in this case were purchased on the stock
market in advance.
47.3 %
Capital increase
Status: December, 2015
Annual shareholders’ meeting
The annual shareholders' meeting of Axel Springer SE
took place in Berlin on April 14, 2015. Approximately
430 shareholders or 74.2 % of capital carrying voting
rights participated. All resolutions proposed by the Man-
agement – including the proposal to create authorized
capital of up to € 11.0 million in total as well as the pro-
posal to pay a dividend of € 1.80 (PY: € 1.80) per quali-
fying share –were approved by majorities of at least
91.9 %. Based on the closing price of the company’s
share at year-end 2014, the dividend yield came to 3.6 %.
The total dividend pay-out to our shareholders was
€ 178.1 million. The amendment to the Articles of Asso-
ciation of Axel Springer SE, brought about by the crea-
tion of authorized capital, became effective with its entry
in the commercial register at the end of April 2015.
By partially drawing down the authorized capital, the Exec-
utive Board decided on December 3, 2015, subject to the
approval of the Supervisory Board, to increase the capital
stock of the company to the exclusion of shareholders’
subscription rights by € 8,955,311 from € 98,940,000, in
return for a non-cash contribution, to € 107,895,311 by
issuing 8,955,311 registered shares, each representing a
proportional amount of the capital stock of € 1.00, and
with profit participation rights as of January 1, 2015.
The 8,955,311 new shares were fully subscribed by
General Atlantic Coöperatif U.A., Amsterdam, The Neth-
erlands, in return for a contribution of 15 % of the busi-
ness shares in Axel Springer Digital Classifieds GmbH.
The implementation of the capital increase was entered in
the commercial register of the Local Court (Amtsgericht)
of Charlottenburg on December 9, 2015. As of now, the
capital stock of the company totals € 107,895,311. On
December 17, 2015, 5,803,799 of the new shares were
admitted for trading, with the remaining shares due to be
admitted for trading at the end of 2016.
Share ownership program
Information on Listing
Our employees have the opportunity to benefit directly
from the appreciation of the company’s value by partici-
pating in our share ownership program. Under this pro-
gram, all employees of Axel Springer SE and its domestic
subsidiaries who were eligible for a profit-sharing bonus
for 2014, or who had entered into a target agreement,
were given the chance in May 2015 to convert 50 % or
100 % of their profit-sharing bonus or performance-
dependent compensation into shares of Axel Springer SE.
Share type
Stock exchange
Registered share with
restricted transferability
Germany (Prime Standard)
Security Identification Number
550135, 575423, A2AABZ
ISIN
Thomson Reuters
Bloomberg
DE0005501357, DE0005754238,
DE000A2AABZ9
SPRGn.DE
SPR GY
9
Combined
Management Report
12 Fundamentals of the Axel Springer Group
22 Economic report
39 Economic position of Axel Springer SE
43 Events after the reporting date
44 Report on risks and opportunities
57 Forecast report
62 Disclosures and explanatory report of the
Executive Board pursuant to takeover law
67 Corporate Governance Report
10
Annual Report 2015
Axel Springer SE
Combined Management Report
Axel Springer has had a successful
conclusion to the 2015 financial year.
The following statements refer exclusively to continuing
operations (see page 27).
Axel Springer has had a successful conclusion to the
2015 financial year. The forecast targets published in
March 2015 were essentially attained (see page 59).
During the reporting year, total revenues were € 3,294.9
million, and therefore 8.5 % above the prior-year figure
(€ 3,037.9 million). The revenue increase resulted from
growth in the segments of Classified Ad Models and Mar-
keting Models, while the revenues of the Paid Models and
the Services/Holding segment declined. Adjusted for
consolidation and currency effects, total revenues were
above the level of the prior-year figure (+ 1.6 %).
The pro-forma revenues of digital media activities
increased to € 2,004.6 million (PY: € 1,794.6 million),
reflecting an organic growth rate of 11.7 %.
EBITDA rose, compared to the previous year, by 10.2 %
to € 559.0 million (PY: € 507.1 million). Furthermore, the
generated EBITDA margin also improved to 17.0 % (PY:
16.7 %). The significant growth in earnings in our Classi-
fied Ad Models and improved earnings within the Ser-
vices/Holding segment were offset by the declines in the
Paid Models and Marketing Models. The EBITDA of
digital activities rose by 19.4 % from € 358.9 million to
€ 428.7 million.
The adjusted earnings per share from continuing oper-
ations of € 2.22 were 10.3 % above the prior-year figure
of € 2.01.
At the annual shareholders’ meeting to be held on April
13, 2016, the Executive Board and Supervisory Board
will propose a dividend of € 1.80 (PY: € 1.80) per quali-
fying share.
Outlook for 2016
We anticipate in the Group that total revenues will be
higher for the 2016 financial year than the prior-year figure
by an amount in the low single-digit percentage range.
Adjusted for consolidation effects, primarily due to the
deconsolidation of the activities in Switzerland, growth
would be higher and would be in the mid single-digit
percentage range. We assume that the planned increase
in advertising revenues will more than compensate for the
decline in circulation revenues and other revenues.
We expect a rise in EBITDA in the low to mid single-digit
percentage range. In this case, a rise in EBITDA in the
Classified Ads Models segment is expected, whilst the
EBITDA, of Marketing Models segment should finish
around the level of the prior year due to planned invest-
ments in product quality and also in digitization. For Paid
Models and Service Holding, the EBITDA is expected to
be below the previous year level.
For EBIT we expect developments to slightly lower than
for EBITDA due to higher depreciation, amortization and
impairments.
For the adjusted earnings per share, we expect an
increase in the mid-to-high single digit percentage.
Introductory remarks
The current combined management report for Axel
Springer SE and the Group contains statements con-
cerning the economic situation and business perfor-
mance of the Axel Springer Group. These statements are
also largely applicable to Axel Springer SE. Additional
information on the economic situation of the parent
company Axel Springer SE is provided in a separate
chapter on page 39.
For the sake of better comparability, the operating earn-
ings indicators EBITDA and EBIT have been adjusted for
non-recurring effects and amortization and impairments
from purchase price allocations (see Section (32) of the
notes to the financial statements).
11
Annual Report 2015
Axel Springer SE
Combined Management Report
Fundamentals of the Axel Springer Group
Fundamentals of the Axel Springer Group
Segments
Axel Springer Group
Classified
Ad Models
Paid
Models
Marketing
Models
Services/
Holding
the SE is the better alternative for the long-term devel-
opment of the company and its attractiveness for the
capital market. Axel Springer continues to pursue the
objective of continuing to grow and becoming the lead-
ing digital publisher.
Segments of the Axel Springer Group
Axel Springer’s business activities are organized into
three operating segments: Classified Ad Models, Paid
Models and Marketing Models. In addition, there is the
Services/Holding segment.
The segment structure reflects the different customer
groups and revenue types of an increasingly digital
publisher.
Classified Ad Models
All business models which predominantly generate reve-
nues in online classified advertising are summarized in
the Classified Ad Models segment.
Portfolio and market position
Axel Springer has established a portfolio of leading online
classified ad portals within the areas of jobs, real estate,
automobile, and general classified ads over the last few
years. The principal activities of the Classified Ad Models
segment are summarized in the graph below.
Business model
Axel Springer is a leading digital publisher in Europe.
Journalism is the foundation of the business model. The
broad-based media portfolio includes successfully estab-
lished brand families such as the BILD Group and the
WELT Group. Journalistic content is delivered to Internet
users, readers, viewers, and advertising customers via
digital, print, and TV channels. The portfolio is divided
into Paid Models which are generally used by paying
readers, into Marketing Models where revenues are
primarily generated by advertising customers and into
Classified Ad Models where revenues are primarily gen-
erated by job ads, real estate and car ads. The focus is
on the digital transformation of the business.
Legal structure, business locations
Axel Springer SE, as the flagship company of the Axel
Springer Group, is an exchange-listed stock corporation
with its registered head office in Berlin. The Group also
maintains offices at other locations in Germany. In addi-
tion, the Group comprises numerous companies in other
countries. The consolidated shareholdings of the Group
are listed in Section (43) in the notes to the consolidated
financial statements.
The Executive Board and Supervisory Board decided in
December 2014 to prepare to change Axel Springer SE
into a partnership limited by shares (KGaA). However,
the board decided not to pursue the planned change.
Following a detailed examination of the conversion in
February 2016, the company and Dr. h. c. Friede
Springer came to the conclusion that the legal form of
12
Annual Report 2015
Axel Springer SE
Combined Management Report
Fundamentals of the Axel Springer Group
places for jobs, automobiles, real estate and classified
ads. In addition, city information, classified directories,
and event calendars are also provided, amongst others.
Axel Springer had an equity stake in the CarWale auto-
mobile portal until the beginning of 2016 (see page 26).
Furthermore, since the beginning of 2015 @Leisure, a
leading operator of online brokerage portals for vacation
home rentals belongs to the Classified Ad Models seg-
ment. The company is headquartered in Amsterdam and
also operates, amongst others, the portals belvilla and
casamundo, as well as the portals TopicTravel, Aanzee
and VillaXL, which were newly acquired in 2015.
Business model and key factors
The Classified Ad Models segment generates revenues
mainly from sales of classified ads. In addition, it also
generates revenues by marketing online ad space,
through cooperation arrangements, and by providing
software functions to clients. Business developments are
significantly determined by the economic environment in
the respective market segments, the market position in
the respective segment, and online usage behavior of
advertisers and seekers. Long-term growth drivers are,
among others, the continuing shift of classified ads to the
Internet, the rising number of Internet users, and the
monetization of supplementary products.
Within Jobs, ads are sold to job advertisers, and logins
to online resume databases which belong to the respec-
tive portals are offered, in which the job advertisers can
actively search for suitable candidates.
Real estate portals primarily generate revenues by
selling advertising and display space to agents, project
developers, housing agencies, or private individuals.
Within General/Other, revenues are based on the focus
of the relevant portal. These include, among others, com-
mercial automobile retailers, landlords of vacation homes,
real estate agents and project developers. The portals are
also partially aimed at private individuals who predomi-
nantly sell second-hand goods via this marketplace.
Portfolio Classified Ad Models
Jobs
Real Estate
StepStone
Totaljobs
Jobsite
Saongroup
YourCareerGroup
SeLoger
Immowelt/Immonet
Immoweb
General/
Other
@Leisure
LaCentrale
Yad2
meinestadt.de
CarWale1)
1) Until December 2015, see page 26.
Jobs comprises StepStone, the leader among private-
sector job exchanges in Germany and Belgium, and one
of the leading providers in Europe. The StepStone Group
supplies the most candidates in Germany with its portals
specializing in management and specialist staff, and also
has two of the largest online recruitment portals in Great
Britain in the form of Totaljobs and the Jobsite Group,
which include, among others, the specialist portals Ca-
terer.com, CWJobs.co.uk, CityJobs.com and eMed-
careers.com. The Saongroup, which was acquired by
StepStone Group, operates job portals in 15 countries
and is the leader in Ireland, Northern Ireland, and South
Africa. The specialty provider YourCareerGroup, which
was likewise acquired, is the leading niche portal in the
German speaking countries for online ads for hotel and
restaurant jobs.
In Real Estate, Axel Springer is the leader in France
(with SeLoger) and Belgium (with Immoweb). SeLoger’s
portfolio also includes some niche portals such as va-
cances.com and a-Gites.com for vacation home rentals,
and belles-demeures.com for luxury properties. Since
July 2015, the Real estate segment has also included the
German real estate portal Immowelt which, together with
Immonet, is one of the leading real estate portals in
Germany (see page 24).
In General/Other, Axel Springer has since July 2014
also held a shareholding of Car & Boat Media SAS,
headquartered in Paris. This company operates LaCen-
trale, the leading specialist classified ads portal for used
cars in France, as well as other portals related to cars
and boats. Yad2, a portal which was likewise acquired in
2014, is the leading general classified ad portal in Israel
for real estate, automobile and classified ads. The Ger-
man regional portal meinestadt.de consists of market-
13
Annual Report 2015
Axel Springer SE
Combined Management Report
Fundamentals of the Axel Springer Group
Paid Models
The Paid Models segment encompasses all business
models that are primarily used by paying readers.
Portfolio and market position
Paid Models are sub-divided into national and interna-
tional offerings. The principal activities are summarized in
the graph below.
Portfolio Paid Models
National
International
BILD Group
WELT Group
Switzerland1)
USA
Austria2)
Russia3)
Spain
France
Belgium
Ringier Axel Springer Media
Poland
Hungary
Slovakia
Serbia
1) As of January 1, 2016 part of a joint venture, see page 25.
2) Until August 2015, see page 25.
3) Until October 2015, see page 25.
Paid Models National are mainly offered by the BILD
Group and the WELT Group.
The BILD Group comprises the digital media offerings and
the newspapers and magazines of the BILD family of
brands and B.Z. Bild.de is Germany's largest news and
entertainment portal with the widest reach in the country
with a digital subscription model. Bild.de is also distributed
via mobile channels, with apps for nearly every kind of
smartphone, tablet PC, and smart TV, not to mention the
mobile portal, once again one of Germany’s most-visited
mobile media brands in 2015 (“digital facts 2015-10” of the
Working Group for Online Research (AGOF)). Bild.de also
offers the products stylebook.de, travelbook.de, BUN-
DESLIGA bei BILD, and BILD Shop. BILD is Europe’s
biggest daily newspaper with the widest reach, as well as
the unchallenged number one in Germany, with a share of
75.6 % by newsstand sales. (All figures for the German
newspapers and magazines are based on paid circulation
as per IVW as of December 31, 2015). BILD am
SONNTAG is Germany’s best-selling nationwide Sunday
newspaper in 2015, with a share of 61.3 %. B.Z. is Berlin’s
biggest newspaper. The automotive, computer, and sports
media of the BILD brand family make up a magazine and
online portfolio built on the core brands of AUTO BILD,
COMPUTER BILD, and SPORT BILD. With a share of
54.1 %, AUTO BILD continues to be Germany’s biggest
automotive magazine. It is also the number one automotive
magazine in Europe. Autobild.de is the clear leader among
automotive portals featuring editorial content in Germany.
Furthermore, the magazines COMPUTER BILD and
SPORT BILD occupy leading European market positions in
their respective segments. Based on paid circulation, their
German shares are 37.8 % and 49.0 % respectively.
With effect from January 1, 2015, the WELT Group merged
with N24 to form WeltN24 GmbH, a multi-media news
organization for quality journalism which comprises the
digital media offering welt.de and n24.de and their apps,
the newspapers DIE WELT and WELT AM SONNTAG
along with their compact publications and magazine inserts,
such as BLAU and BILANZ and the television channel N24.
WELT digital products are some of the most successful
stationary and mobile internet sites in the segment of
German premium newspapers. The offering is also avail-
able on PC tablets, smartphones and e-readers, and
also as a digital subscription model. The WELT Edition
app for tablets and smartphones has the strongest turn-
over of any news app in the German app store. DIE
WELT AM SONNTAG is the undisputed number one title
in the nationwide premium newspaper sectors. DIE
WELT (including WELT KOMPAKT) is the third-biggest
premium newspaper in Germany, with a share of 18.7 %,
based on paid circulation. N24 is the market leader
among the news channels and was able to increase its
market share to 1.3 % in 2015.
As part of the merger of the brands DIE WELT and N24, a
process began in 2015 to redevelop the brand identity for
all products. This became apparent initially by way of the
changes made to the printed newspapers and within
WELT digital products, with changes to the design of the
TV channel to be made in 2016. The aim is to ensure the
joint brand identity of all products under the uniform WELT
umbrella brand in 2017. This will be the basis for the devel-
opment of the Group to become the leading multi-media
news organization for quality journalism in German-
speaking countries.
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Our music magazines ROLLING STONE, MUSIKEX-
PRESS and METAL HAMMER were also assigned to the
Paid Models National segment.
Paid Models International comprise Axel Springer’s
digital and print activities in Europe and the USA.
In eastern Europe, the joint venture Ringier Axel Springer
Media is the leader in the segment of mass-circulation
dailies in the countries of Poland, Hungary, Slovakia, and
Serbia. The media offering currently comprises a variety
of digital and printed products. The digital EBITDA share
of the joint venture amounted to 53.1 % in 2015, with
digital revenues amounting to 37.1 %.
We reach 70.6 % of Internet users in Poland through the
leading Polish online group Onet. With FAKT as the largest
newsstand newspaper and PRZEGLAD SPORTOWY as
the country’s only national sports daily, the joint venture
controls 42,1 % of the market for national dailies (based on
paid circulation), making it the biggest newspaper publisher
in Poland. With Media Impact Polska, we are also repre-
sented by the largest marketing organization in the Polish
market. The range consists of strong brands and offers
clients innovative, integrated advertising solutions.
Ringier Axel Springer Media's portfolio in Hungary will
comprise titles with a strong market position in their re-
spective sectors and with excellent potential for digitiza-
tion, which predominantly include mass-circulation dailies,
including the leader BLIKK, and women’s magazines.
In Slovakia, azet.sk is the leading Internet portal reaching
82.3 % of Internet users in that country. The leading posi-
tion in the print business is mainly based on the NOVY
CAS family of brands, consisting of two newspapers and
four magazines. The mass-circulation daily of the same
name is the country’s biggest newspaper, with a share of
39.6 %, based on paid circulation. In total, Ringier Axel
Springer Media publishes nine magazines in Slovakia.
In Serbia, Ringier Axel Springer Media is the publisher
with the highest total circulation and reach, with three
newspapers and five magazines and the corresponding
web portals. Furthermore, our joint venture publishes
Serbia’s biggest mass-circulation dailies, ALO! and BLIC,
together with their high-reach online portals. In addition,
the largest marketing organization in Serbia was
launched in the form of Media Impact Srbija.
Axel Springer is represented in Spain by seven maga-
zines and three online portals. In particular, we occupy
leading positions in the video game and computer mag-
azines segments and also in automotive magazines.
We are represented in France in a joint venture with the
Mondadori Group with three automotive magazines and
associated online portals.
In Switzerland, the new joint venture, combining the
activities of Axel Springer and Ringier, was launched at
the beginning of 2016. For more information on this
subject, please refer to page 25.
In October 2015, Axel Springer sold 100 % of its activi-
ties in Russia. More detailed information on this subject
can be found on page 25.
The 50:50 joint venture established in September 2014
between POLITICO, the leading media brand for political
journalism in Washington D.C., and Axel Springer resulted
in the start of POLITICO’s European operations in spring
2015, with its headquarters in Brussels. Once the joint
venture had acquired EUROPEAN VOICE and Develop-
ment Institute International (DII), France’s leading events
agency in the field of public affairs, in January 2015, PO-
LITICO’s offering in Europe now consisted of a website,
digital newsletters, a newspaper and conferences.
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Axel Springer has been represented in the USA since the
end of October 2015 in the form of businessinsider.com,
the leading digital offering for business and financial
news (see page 25). In addition to businessinsider.com,
"Business Insider" also operates the offerings "Tech
Insider" and "Business Insider UK". “Insider” is due to be
added as an additional portal in the first half of 2016.
"Business Insider" is thus active in nine countries and
has been active in Germany since November 2015. Over
the past few years, Axel Springer has also established an
early-phase portfolio in the USA that focuses on digital
journalism and includes, among others, minority interests
in Thrillist, Ozy, and NowThis.
Business model and key factors
The revenues generated in the Paid Models segment
consist mainly of circulation revenues and advertising
revenues. Circulation revenues are generated on sales
of newspapers and magazines and digital subscriptions
models. Advertising revenues are generated by market-
ing the reach of our online and print media. The value
chain, which spans all media comprises all essential
processes involved in the production of information,
entertainment, and video content, from conception to
editorial work and production, and from there to sales
and marketing. The cross-media approach is conducive
to the optimal realization of synergies, competencies and
reach values.
All journalism content is collected in integrated news-
rooms, some of which are used for more than one publi-
cation, and processed there in accordance with the de-
mands of our print and online media. The production
process for digital paid content involves the production of
editorial content, which we then post on our websites or
other digital resources such as smartphones, PC tablets,
and smart TVs, or the processing and aggregation of
information in databases. Our newspapers are produced,
amongst others, in the three offset printing plants in Ham-
burg-Ahrensburg, Essen-Kettwig, and Berlin-Spandau.
We therefore carry out all steps in the value chain our-
selves, from production to monitoring dispatch logistics.
Distribution of digital products takes place predominantly
via our own Internet pages or download platforms such
as the app stores of Apple and Google. The print media
are distributed nationally and internationally mainly via
wholesale press distribution companies, train station
bookstores, and press import companies. In Germany
there are about 107 thousand retail outlets where our
newspapers and magazines are sold.
Paid Models are centrally marketed in Germany by Media
Impact, one of the leading cross-media marketers based
on gross market shares. The digital marketing portfolio
also includes content produced by other companies.
Business development in this segment is, amongst other
things, strongly influenced by the growing use of digital
content. Key growth drivers are moving images and the
mobile Internet, via smartphones and tablets, which are
mostly used in addition to stationary Internet connections
(source: AGOF “digital facts 2015-10”). Other key factors
besides online usage behavior are the willingness of con-
sumers to pay for online content and the development of
the market for paid content. Digital content is also driving
the growth of the advertising market, while print media
advertising revenues are declining across the board.
Regardless of media types, this segment is influenced by
the political situation in the relevant markets, as well as
the economic environment and performance of advertis-
ing markets, in particular. Aside from the general market
cyclicity, seasonal aspects and non-recurring effects also
play a role.
Marketing Models
The Marketing Models segment comprises all business
models that generate revenues predominantly through
sales to advertising customers of reach-based or suc-
cess-based marketing services.
Portfolio and market position
The Marketing Models segment is sub-divided into
reach-based and performance-based services. The
principal activities are summarized in the graph below.
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Fundamentals of the Axel Springer Group
Portfolio Marketing Models
Reach Based Marketing
Performance Marketing
Idealo
aufeminin
Bonial
Smarthouse
finanzen.net
zanox/Digital Window
Axel Springer’s Reach Based Marketing portfolio in-
cludes idealo.de, Germany’s leading portal with the widest
reach for product searches and price comparisons. Idealo
has access to more than 1.8 million products with more
than 214 million offers from online retailers (average as of
Average December 2015) and is also represented interna-
tionally with numerous offerings. The ladenzeile.de product
comparison portal is also part of the Idealo Group.
aufeminin is the largest online women's portal worldwide
and is active in 16 countries with its articles on fashion,
beauty, and lifestyle. The corporate group comprises,
among others, the health portal onmeda in Germany,
France and Spain, the cooking website marmiton, the
online portal netmums, the recommendation newsletter
and lifestyle box provider My Little Paris and the digital
publisher Livingly Media, acquired at the start of 2015
and based in the USA, and operating the four offers;
Livingly.com (fashion, beauty and lifestyle), Zimbio.com
(entertainment), StyleBistro.com (fashion, beauty and
style) and Lonny.com (lifestyle and home decor).
kaufDA.de and MeinProspekt.de operate under the
auspices of the newly created Bonial International Group
as Germany's leading consumer information portals
regarding local shopping. The offerings distribute digit-
ized advertising retail leaflets predominantly via mobile
Internet at a regional level. The services are also offered
under local brands in France (Bonial), Spain (Ofertia) and
the USA (Retale). Additional portals were also started in
2015 in Mexico, Chile, Columbia (all Ofertia), Sweden,
Norway and Denmark (all Bonial).
Germany’s widest-reach finance portal finanzen.net
provides its users with up-to-date financial markets data
on every business day. In line with its internationalization
strategy, this portal also operates in Switzerland, Russia,
and Austria, among other places, and it has also operat-
ed in Sweden since November together with Bonnier
Business Media. Furthermore, finanzen.net has also
operated the German version of Business Insider since
November 2015 (see page 25).
Smarthouse Media is a leading provider of complex,
web-based financial applications for banks, online bro-
kers, and other providers of financial services.
With direct and indirect investments in leading private-
sector radio stations in the TV and radio sector, Axel
Springer holds one of the biggest radio portfolios in
Germany. Axel Springer continues to hold a minority
interest in Turkey’s biggest private-sector TV and radio
company, the Do⁄an TV Group.
Axel Springer’s Performance Marketing activities are
bundled within the zanox Group. The leading provider of
success-based online marketing in Europe brings adver-
tisers and publishers together, giving advertisers an
efficient way to market their products and services on
the Internet. The corporate group comprises the compa-
nies ZANOX AG, including Digital Window, and the per-
formance marketing agency eprofessional.
Business model and key factors
In our Reach Based Marketing activities, ad space is
marketed to advertising customers and charged on the
basis of the reach generated by the given media offerings
(number of users or listeners) or the interaction generated
by the reach. Attractive content generates high reach
values and topic-specific environments enable advertisers
to precisely reach the desired target groups.
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Due to the rising use of online media, reach marketing on
the Internet is a major business. Besides display ads like
banners, layer ads, and wallpaper, videos are also in-
creasingly being used as online advertising formats. In
addition, advertisers are increasingly turning to marketing
cooperation ventures and innovative advertising forms
such as native advertising, sponsoring, and marketing via
YouTube channels. The increasingly automated purchase
and sale of advertising space (programmatic advertising)
as well as the growing prevalence of mobile terminal
devices, in addition to stationary Internet usage, repre-
sents additional potential for Reach Based Marketing.
Performance marketing gives advertisers the chance
to advertise their products on websites and publishers’
offerings via text links, banners, and online videos. The
advertisers only pay a success-based fee to the publish-
ers if the advertising materials have actually been used
and resulted in the desired transaction for the advertising
customers. Our platforms provide the infrastructure for
this efficient form of marketing, record the data flows and
transactions, and allow for a variety of services for adver-
tisers and publishers.
This segment benefits from the growth of stationary and
mobile Internet usage and the increasing tendency of
consumers to make purchases. Through the zanox
Group, Axel Springer benefits from the increasing de-
mand of advertising companies for success-based ad-
vertising and marketing models.
Services/Holding
Group Services, which also include the three domestic
printing plants, as well as the holding functions are re-
ported within the Services/Holding segment. The
Group Services are purchased by internal, Group-wide
customers at standard market prices.
Discontinued Operations
In the previous year, we reported domestic regional
newspapers, TV program guides and women’s maga-
zines as well as the businesses and equity holdings of
Ringier Axel Springer Media in the Czech Republic sepa-
rately as discontinued operations. Both sales were com-
pleted on April 30, 2014.
Management and supervision
Executive Board divisions
The Executive Board of Axel Springer SE currently com-
prises four members, whose work is supported and
supervised by a Supervisory Board composed of nine
members.
Axel Springer Executive Board Divisions
Chairman and Chief Executive Officer
Dr. Mathias Döpfner
Executive
Board
Divisions
Chief Financial Officer
Dr. Julian Deutz
Paid Models
Jan Bayer
Marketing and Classified Ad Models
Dr. Andreas Wiele
Executive Board responsibilities are divided as follows:
Dr. Mathias Döpfner is Chairman and Chief Executive
Officer of Axel Springer SE. All editors-in-chief and the
corporate staff departments of corporate communica-
tions, public affairs, strategy, executive personnel as well
as the Axel Springer Academy report to him.
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Fundamentals of the Axel Springer Group
Dr. Julian Deutz is responsible for the Finance and Per-
sonnel Executive Board division. In addition to the com-
mercial sectors, the department covers the M&A, Audit,
Governance, Risk & Compliance, Personnel, Law, Group
Purchasing and Group Security sectors.
Jan Bayer is the President of the Paid Models segment.
Media Impact (Marketing), Sales Impact (Sales), IT, Print-
ing Plants and Customer Services are also assigned to
this segment.
Dr. Andreas Wiele is the President of Marketing and Clas-
sified Ad Models and is responsible for the corresponding
segments including the associated investments.
Corporate governance principles
Axel Springer’s corporate governance principles are
aligned with our core values of creativity, entrepreneur-
ship, and integrity, as well as the five principles enshrined
in Axel Springer’s own corporate constitution. For more
information on our internal guidelines, please refer to the
corporate governance statement pursuant to Sec-
tion 289a HGB contained in the section entitled “Im-
portant management practices” on page 69 of this An-
nual Report.
Basic principles of the compensation system
The compensation of our employees, all the way up to
senior management level, consists of a fixed component
and – for qualifying employees – an additional variable
component. Variable compensation is determined on the
basis of individual performance and the company’s suc-
cess. To this end, individual target agreements encom-
passing both Group-wide targets and division targets are
adopted every year anew. The part of variable compen-
sation that reflects the attainment of Group-wide targets
in 2015 is determined mainly with reference to the finan-
cial indicators EBITDA and EBIT. A detailed description
of Executive Board compensation can be found in the
“Compensation Report” section of the “Corporate Gov-
ernance” chapter (starting on page 77). There, you will
also find information on the compensation of our Super-
visory Board members (starting on page 79).
Goals and strategy
Axel Springer pursues a strategy of profitable growth,
with the overarching goal of becoming the leading digital
publisher. This goal will be attained when the Group is
the leader in every one of the market segments and
countries in which it operates. Furthermore, journalism is
and always will be the foundation of our business model.
Segment strategies
In the Classified Ad Models segment, Axel Springer
will strive to further extend its position as a leading inter-
national provider. Both organic growth and complemen-
tary acquisitions will contribute to the growth of this
business. Furthermore, Group internal synergies will be
realized systematically.
Early-phase activities have also been started in the clas-
sified ads segment in order to identify innovative busi-
ness models and providers at an early stage.
In the Paid Models segment, Axel Springer will strive to
realize the full potential of its strong brands BILD, WELT,
and N24, as well as its international brands such as
Business Insider.
By means of linking its print, online, and mobile offerings
ever more closely, the BILD Group achieves a higher
level of reading time and usage time than its competitors,
expanding its share among young and high-income
readers in particular. Through the digital brand subscrip-
tion BILDplus, Axel Springer is building and expanding a
base of paying online readers.
WELT, together with N24, wants to become the leading
multimedia provider of quality journalism that is able to
optimally serve print, digital and TV as well as out of
home. The two companies will contribute their respective
strengths to this endeavor. Thus, the WELT Group can
make good use of the video inventory of N24 in its media
offerings, and the quality TV news station can maintain or
expand its leading market position and better exploit its
full online potential in cooperation with the WELT Group.
Furthermore, the WELT Group will use its digital sub-
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Fundamentals of the Axel Springer Group
scription model to further expand the base of paying
readers on the Internet.
The Group’s centralized marketing company Media Im-
pact offers an attractive, cross-media platform for advertis-
ing campaigns – with a reach that is rivaled only by the big
TV marketing firms. As one of the leading cross-media
marketing firms (based on gross market shares), Media
Impact will continue to expand its external marketing
portfolio in the print and digital segments. Axel Springer
reached an agreement with Viacom International Media
Networks in November 2015 to establish a joint venture for
TV and video marketing in Germany. The newly established
joint venture, in which Axel Springer has a 51 % stake and
Viacom International Media Networks has a 49 % stake,
began work in January 2016 under the name Visoon
Video Impact, marketing the entire portfolio of Axel
Springer and Viacom (Comedy Central, MTV, N24, Nick-
elodeon/Nicknight, VIVA) within the German TV sector.
The strategy of sustainable growth in the Marketing
Models segment is followed both in Reach Based Mar-
keting and Performance Based Marketing. In the area of
Reach Based Marketing, the strategy is focused on
expanding the reach and usage of products, increasing
the ad space utilization rate, and developing new adver-
tising, pricing and business models. The continued inter-
nationalization of services is also a growth driver. Fur-
thermore, innovative products and business models are
promoted, developed and, if successful, expanded fur-
ther via capital expenditures in early-stage activities. In
the performance marketing sector, the focus is on the
increased interlinking of the activities combined within
the zanox Group, primarily through standardizing the
technical platform, as well as the expansion of services
and the publisher network.
Organic and acquisitions-driven growth
Generally speaking, the organic growth measures of the
different segments pursue the same goal of expanding
the current portfolio and increasing the revenues and
profits per reader/user on the basis of attractive product
design and pricing. These measures will be accompa-
nied by acquisitions-driven growth.
In all segments, Axel Springer seizes opportunities to
expand the business model by investing in companies
with innovative business ideas, which are still in an early
phase of their development. For this purpose, in 2013,
Axel Springer started the Axel Springer Plug & Play
GmbH accelerator program in conjunction with the Sili-
con Valley-based Plug & Play Techcenter, in addition to
the existing interest in the Project A Ventures early stage
fund. A number of direct minority interests are also as-
signed on a selective basis to these indirect interests in
startups. Over the past few years, Axel Springer has also
established an early-phase portfolio in the USA that
focuses on digital journalism and was expanded in 2015
to include minority interests in companies such as
Thrillist and NowThis. Axel Springer also became in-
volved in the LAKESTAR II investment fund in August
2015. The fund concentrates on digital companies with a
focus on Europe and the USA (see page 25).
When the opportunity arises, Axel Springer will also
acquire companies that are well established in the mar-
ket. Suitable acquisition targets are chosen on the basis
of complementary business strategies, as well as the
quality of management, and the profitability and scalabil-
ity of the business model.
We employ a capitalized earnings approach based on
weighted capital costs to assess the economic efficiency
of investments in new or existing business segments.
The weighted capital costs are determined with refer-
ence to a target capital structure.
In general, we employ a capital markets equilibrium
method, using beta for the business-specific, systematic
risk, and a market premium for the country-specific,
unsystematic market risk, to assess the risks of an in-
vestment opportunity. Essentially, we assume that the
systematic risk of our company is the same, on average,
as that of our peer group – meaning other European
media companies.
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Fundamentals of the Axel Springer Group
Internal management system
We have designed our internal management system and
defined suitable control parameters in alignment with our
group strategy. We use both financial and non-financial
performance indicators to measure the success of our
strategy.
Detailed monthly reports are an important element of our
internal management and control system. These reports
contain the monthly results of our most important activi-
ties, along with a consolidated statement of financial
position, income statement, and cash flow statement.
We use these reports to compare actual values with
budget values. When variances arise, we investigate
further or initiate suitable corrective measures.
These reports are supplemented by periodic forecasts of
anticipated advertising revenues in the following weeks
and months as well as by forecasts of the probable
development of our financial performance.
Financial performance indicators
Our central focus is to sustainably increase both the
profitability and the value of our company. The most
important target and control parameters for the compa-
ny’s financial performance are revenues, EBITDA, and
EBIT. EBITDA and EBIT also forms the basis for the per-
formance-based compensation of leadership (please refer
to page 76 for more information on the compensation
system). These indicators and the EBITDA margin are
anchored in our internal planning and controlling system.
Financial Control Parameters1)
Selected financial control
parameters on the Group level,
€ millions
Total revenues
EBITDA2)
EBITDA margin2)
EBIT2)
2015
2014
3,294.9
3,037.9
559.0
507.1
17.0 %
16.7 %
449.0
394.6
1) Continuing operations.
2) Adjusted for non-recurring effects and amortization and impairments from pur-
chase price allocations, see also the information in the notes to the consolidated
financial statements under Note (32).
Non-financial performance indicators
In addition to the financial performance indicators, the
following non-financial performance indicators are rele-
vant to an evaluation of our performance with respect to
customers, the market, and offerings, although they are
not employed as the basis for managing the company as
a whole:
Unique users/visitors and other business model-
specific indicators of our online media, and the result-
ing market positions
Reach values of our media in the advertising market
and indicators of brand and advertisement familiarity
Average paid circulation of all principal newspapers
and magazines
Digital subscriptions
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Economic report
Economic report
General economic conditions and business developments
the rate of inflation was characterized considerably by
the fall in energy prices.
According to the ifo Institute, the economic recovery in
the euro area is now being felt in central and eastern
European EU member states. A decrease in unem-
ployment and increasing real incomes have resulted in
consumer spending making a strong contribution to
economic performance everywhere. Additional impetus
was provided by exports. However, exports in Poland
and the Baltic states were affected by the recession in
Russia.
Industry environment
Press distribution market
Continuing the trend of prior periods, the German press
distribution market contracted somewhat further. The
total paid circulation of newspapers and magazines was
6.0 % below the corresponding prior-year figure. Thanks
to the price increases implemented in the past four quar-
ters, however, circulation revenues declined by only 3.6 %.
The 351 IVW registered daily and Sunday newspapers
achieved total sales of 18.6 million copies per publication
date. Compared to the prior-year figure, this corre-
sponds to a decline of 4.6 %. Newsstand sales (– 9.3 %)
– as in the prior year – suffered a much greater decline
than subscription sales (– 3.5 %). Within the press distri-
bution market, the demand for daily and Sunday news-
papers – as weighted for their respective publication
frequencies – declined by 5.8 %.
Overall sales of general-interest magazines including
membership and club magazines was 98.1 million copies
per publication date. Compared to the prior-year period,
this corresponds to a decline of 4.1 %. IVW tracked a
total of 789 titles (– 4.0 % compared with the prior-year
figure). The demand for general-interest magazines –
weighted for their respective publication frequencies –
declined by 6.7 %.
General economic conditions
According to the estimates of the International Monetary
Fund (IMF), the world economy expanded by 3.1 % in
2015. The IMF noted a moderate recovery of economic
growth for industrialized countries. Growth rates in
emerging and developing countries have declined from
their higher levels. According to the IMF, the global
economy is currently influenced by three significant risk
factors: Growth rates in China are decreasing as the
focus there is shifting from an export-oriented economy
to one that is consumer-oriented. The robust growth of
the US economy is leading to a tightening of monetary
policy. Finally, declining commodity prices have not only
resulted in a surge in demand in oil-importing countries,
but are also leading to considerable reductions in growth
in oil-exporting countries.
According to calculations from the German Federal Statis-
tical Office, the German economy recorded solid and
steady economic growth in 2015. Gross Domestic Prod-
uct was 1.7 % higher in real terms compared to the prior-
year figure. Consumption showed itself to be the most
powerful driver of economic growth once again. Personal
consumer spending increased by 1.9 % in real terms, with
consumer spending by the government even increasing by
2.8 % in real terms. Capital expenditures also increased: In
real terms business and the government have increased
expenditure in equipment by 3.6 % compared to the prior-
year figure. Construction investments also generated a
slight increase of 0.2 % when adjusted for price. German
foreign trade was particularly dynamic in 2015: In real
terms, Germany exported 5.4 % more than in 2014. Im-
ports rose slightly quicker by 5.7 % in real terms.
In 2015, the number of persons unemployed fell by 3.6 %
to an average of 2.8 million persons. The unemployment
rate was 6.4 %. The consumer research organization
Gesellschaft für Konsumforschung (GfK) established that
the consumer climate has dampened slightly in the sec-
ond half of 2015. However, consumer expectations
about the economy and their income were significantly
higher by the end of the year. According to calculations
from the German Federal Statistical Office, consumer
prices rose by 0.3 % during 2015. The continued fall in
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Economic report
Whereas the circulation volumes of print media declined
again in 2015, online media continued the growth trend
of prior years. According to the study “digital facts
2015-10” published by the Working Group for Online
Research (AGOF), 52.9 million people in Germany use
the Internet today (Internet users within the last three
months). That number represents 76.3 % of German
residents aged 14 and older. Of the total regular Internet
users, 67.7 % go online to obtain information about
world events, and 60.7 % use the Internet for regional or
local news. Thus, getting the news is one of the main
reasons for using the Internet, besides online searches,
e-mail, online shopping, and weather forecasts. Job
listings are also one of the 20 most-used online catego-
ries. Alongside the wired Internet, the mobile Internet
continues to gain in importance according to the study.
In the last three months, 37.8 million people used mobile
Internet (54.6 % of the German-speaking residential
population of Germany over 14 years of age). In most
cases (97.0 %), mobile Internet use was predominantly in
addition to desktop use. According to IVW, content
portals of German print media were visited somewhat
more frequently in 2015 compared to the previous year.
The 20 most popular portals of German daily newspa-
pers increased the number of visits by an aggregate of
12.7 %, whilst the visits to portals belonging to maga-
zines rose by 14.4 %.
Advertising market
The German Advertising Association (ZAW) assumes in
its forecast for 2015, issued in December, that net ad-
vertising revenues will be at the prior-year figure.
According to the latest advertising market forecast of
ZenithOptimedia (“Advertising Expenditure Forecast“,
December 2015), the advertising market in Germany in
2015 was slightly above the prior-year figure.
According to these surveys, net revenues of the total
advertising market (including classified ads and adver-
tising supplements, less discounts granted and agency
commissions, and excluding production costs) amount-
ed to € 19.0 billion in the reporting period, reflecting a
nominal increase of 1.7 % from the prior-year figure.
In the German online market (display ads, search term
marketing, and affiliates), net advertising revenues rose
by 9.7 % to € 5.1 billion in 2015.
In the category of print media, the net advertising reve-
nues of newspapers (newspapers, advertising supple-
ments, and newspaper supplements) amounted to
€ 4.8 billion in 2015, reflecting a 3.3 % decrease from the
prior-year figure. The net advertising revenues of maga-
zines (general-interest and trade magazines, directory
media) declined by 4.2 % to € 2.9 billion. According to
ZenithOptimedia, digital advertising revenues overtook
newspaper advertising revenues for the first time in 2015.
In 2015, television advertising in Germany rose by
3.3 % to € 4.4 billion, and net advertising revenues in
radio declined by 0.4 % to € 735 million. The net adver-
tising revenues of outdoor advertising rose by 2.0 % to
€ 945 million in 2015.
23
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic report
and contribution agreements in June 2015, both real
estate portals were brought under the auspices of the
new Immowelt Holding AG company. Axel Springer
holds a majority interest in the company of 55 %. The
other 45 % is held by the current shareholders of Im-
mowelt AG. The remaining shareholders have been
offered various options for selling their shareholding to
Axel Springer in connection with the transaction. The
transaction was based on a valuation of both companies
totaling € 420 million. Axel Springer paid a total of ap-
proximately € 131 million as a purchase price to the
previous partners of Immowelt in connection with creat-
ing the new structure. The combining of both portals
makes it possible to sustainably improve the competitive
position within the German market segment for real
estate portals.
aufeminin has taken over all shares in the digital publish-
er Livingly Media in the USA in the first quarter of 2015
as part of its strategy of internationalization. Livingly
Media operates the three websites Zimbio.com (enter-
tainment), StyleBistro.com (fashion, beauty and style)
and Lonny.com (living and decor). Later on in the year,
the company also started an additional website in the
form of livingly.com (fashion, beauty and lifestyle).
Furthermore, aufeminin intends to concentrate on its
digital publishing activities and thus sold its shares in the
subsidiary Smart AdServer to Cathay Capital and to the
current management of Smart AdServer in April 2015 at a
total price of € 37 million.
In the first quarter of 2015, we sold about 2.7 % of our
equity stake in Do⁄an TV Holding A.S., Istanbul, Turkey.
The proceeds from this transaction amounted to € 63.3
million.
At the end of July 2015, the media group Talpa Media
acquired the remaining 50.1 % interest in the TV produc-
ers Talpa Germany from Axel Springer SE. In December
2014, Talpa had already acquired 49.9 % of Talpa Ger-
many (previously Schwartzkopff TV.)
According to ZenithOptimedia, the following advertising
revenue developments are expected for selected coun-
tries in 2015:
Anticipated Advertising Activity 2015 (Selection)
Change in net ad revenues compared
to prior year (nominal)
Germany
United Kingdom
France1)
Poland1)
Switzerland2)
Hungary
Belgium2)
Slovakia1)
Netherlands
Serbia1)
Austria1)
Ireland
Italy1)
Spain1)
USA
Israel
India1)
Brazil
Online
Print
9.7 %
– 3.7 %
13.1 %
– 9.3 %
4.4 %
– 9.0 %
10.7 %
– 15.6 %
16.7 %
– 3.1 %
7.7 %
– 2.0 %
5.0 %
– 5.9 %
22.1 %
– 3.6 %
7.4 %
– 5.2 %
10.9 %
8.2 %
13.2 %
– 4.5 %
22.2 %
2.8 %
8.7 %
– 6.8 %
10.0 %
0.9 %
18.2 %
– 4.7 %
18.1 %
– 14.1 %
30.0 %
13.5 %
5.9 %
– 9.1 %
Source: ZenithOptimedia, Advertising Expenditure Forecast (December 2015).
1) Excluding Classified ads, that means exclusively sales from display advertising.
2) Gross advertising revenues (excluding classified ads).
Business performance
At the beginning of January 2015, we acquired 51 % of
the shares of the @Leisure Group. @Leisure is a lead-
ing European operator of online brokerage portals for
vacation home rentals. Through the majority investment
in @Leisure, Axel Springer complements its existing
digital activities in the travel segment.
In February 2015, Axel Springer signed an agreement
with the shareholders of the real estate portal, Immow-
elt, regarding combining the Immowelt Group and our
Immonet Group. After finalization of various purchase
24
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic report
In August, Axel Springer SE sold its majority share
(50.1 %) in Runtastic GmbH, a provider of mobile apps
for measuring sports and fitness data, to the Adidas
Group. The company value for the entire transaction
amounted to € 220 million. In October 2013, Axel
Springer acquired the shares for a company value of
€ 22 million, and then to a limited extent made further
investments in the company.
In July, Axel Springer and ProSiebenSat.1 announced a
joint initiative for promoting digital startups. The aim is
joint investments in companies and funds, linking the
incubation and accelerator programs as well as media-
for-equity investments. In August, both cooperation
partners acquired equity stakes in the LAKESTAR II
investment fund with an overall mid-double-digit contri-
bution in millions over the term of the fund. The fund will
concentrate on digital companies with a focus on Europe
and the USA. In September, Axel Springer and ProSie-
benSat.1 each acquired a non-controlling interest in
Jaunt, an American startup that has specialized in the
creation and dissemination of virtual reality content.
Also in September, Axel Springer agreed a strategic
partnership with Samsung Electronics Co. Ltd. for the
development of new digital media formats. The first result
of the partnership was the presentation of the beta ver-
sion of upday, a content platform for aggregated, curat-
ed and self-written news content. The product combines
selected information (content that users want to know
about in order to be able to have a say) from local editori-
al teams in various countries with information offers se-
lected by algorithm that are tailored to the individual inter-
ests of users. After the launch in Germany and Poland in
September 2015, the product is also due to be launched
on the market in France and Great Britain in 2016.
In September 2015, Yad2 acquired 70 % of the shares in
Saknai Net Ltd., the operator of Drushim, one of the
leading Israeli job portals, and strengthened its position
on the market for online job exchanges.
In September 2015, Ringier and Axel Springer signed the
contract for the establishment of a joint venture in
Switzerland. Since January 1, 2016, all Swiss-German
and West Swiss newspaper titles (including their associ-
ated online portals) of Ringier as well as the West Swiss
broadsheet, Le Temps, and all of Axel Springer’s busi-
ness in Switzerland are combined under the Ringier Axel
Springer Schweiz company. With the new company, the
partners want to significantly improve their competitive-
ness in the Swiss readers and advertising market, and in
particular force the digitization of its well-known brands.
Axel Springer is consolidating the pro rata income from
investments.
Also in September, Axel Springer concluded an agree-
ment for the purchase of around 87.8 % of the shares in
Business Insider. New York based Business Insider,
operates the leading digital offering for business and
financial news in the U.S. (businessinsider.com). The
acquisition is a vital part of Axel Springer strategy to
broaden its global digital reach and expand its journalistic
portfolio in the English-speaking world. Business Insider
is thus present in nine countries. The purchase price for
the acquired shares in Business Insider totaled € 320.4
million. Axel Springer previously held an equity stake of
around 8.7 % of the company and after the purchase
holds around 96.5 % of the Business Insider shares.
Henry Blodget, founder, Chief Executive Officer and
Editor-in-Chief, and Julie Hansen, Chief Operating Officer
and President, will also manage Business Insider in the
future in the respective functions. The transaction was
completed at the end of October 2015.
At the beginning of October, Axel Springer acquired a
non-controlling interest in the New York-based Thrillist
Media Group, one of the leading digital media compa-
nies and lifestyle media for the male "millennials".
In October, Axel Springer sold its activities in Russia.
Axel Springer had been active in Russia since 2004; the
portfolio includes the brands FORBES, OK!, GEO and
GALA BIOGRAFIA.
25
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic report
Overall statement of the Executive
Board on the course of business and
economic environment
Digitization continues to be the defining trend for the
economic environment for media companies. Segments
of the Axel Springer Group have therefore developed
accordingly. The strongest increase in revenues was
recorded with the two segments that have been fully
digitized, namely Classified Ads and Marketing Models.
Revenues for Paid Models decreased slightly due to the
higher proportion of print business which declined due to
structural changes. Business performance was also
influenced by acquisitions in digital business models and
active portfolio management. The overall positive devel-
opment in the financial year confirms our strategy of
rigorously digitizing the company.
In November 2015, as part of its efforts focusing on the
digital growth strategy, Axel Springer agreed the sale of
its interest in CarWale, a leading online portal for auto-
mobiles in the Indian market, at a converted purchase
price (net of taxes) of € 64.2 million. The transaction was
completed in January 2016.
In December, we acquired the remaining 15 % of shares
in Axel Springer Digital Classifieds GmbH from Gen-
eral Atlantic Coöperatif U.A., Amsterdam, the Netherlands,
in return for issuing new shares in Axel Springer SE. In
doing so, Axel Springer now controls 100 % of the com-
pany in which significant parts of the Classified Ad busi-
ness are combined. As part of this transaction, General
Atlantic Coöperatif U.A. received 8,955,311 new shares
of Axel Springer SE. Thus, General Atlantic now holds an
8.3 % stake in Axel Springer. The new shares were creat-
ed based on the authorized capital that was approved by
the annual shareholders’ meeting in 2015. The capital
increase was entered in the commercial register on De-
cember 9, 2015, thereby increasing the total number of
Axel Springer shares from 98,940,000 to 107,895,311.
5,803,799 of the new shares were admitted for trading on
December 17, 2015, with the remaining shares due to be
admitted for trading at the end of 2016.
26
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic report
Financial performance, liquidity, and financial position
Financial performance of the Group
(continuing operations)
The following presentation of the Group’s financial per-
formance refers exclusively to continuing operations.
During the reporting year, total revenues were
€ 3,294.9 million, and therefore 8.5 % above the prior-
year figure (€ 3,037.9 million). The revenue increase
resulted from growth in the segments of Classified Ad
Models and Marketing Models, while the revenues of the
Paid Models and the Services/Holding segment declined.
Adjusted for consolidation and currency effects, total
revenues were 1.6 % higher than the prior-year.
The pro-forma revenues for digital media increased
to € 2,004.6 million (PY: € 1,794.6 million), organic
growth was correspondingly at 11.7 %. For the operative
segments, organic growth was 13.6 % for Classified Ad
Models, 6.7 % for Paid Models, and 12.2 % for Marketing
Models. The pro-forma revenues take into account the
development of companies, which currently belong to
the Axel Springer Group and hence also the companies
acquired in 2014 and 2015 on the basis of unaudited
financial data.
International revenues rose by 20.2 % from € 1,309.3
million to € 1,573.5 million and amounted to 47.8 % (PY:
43.1 %) of Axel Springer’s total revenues. The increase
resulted from the growing internationalization of the
digital business.
The increase in advertising revenues by 16.1 % to
€ 2,107.6 million (PY: € 1,815.1 million) was largely at-
tributable to the growth in Classified Ads and Marketing
Models, whilst advertising revenues from Paid Models
were slightly below the prior-year figure. Advertising
revenues as a proportion of total revenues was 64.0 %
(PY: 59.7 %). Of the total advertising revenues, 80.4 %
were generated by digital activities.
Circulation revenues totaled € 721.7 million and were
1.8 % below the prior-year figure (€ 735.3 million). The
structural circulation declines within the print business
were therefore able to be partially compensated for by
way of copy price increases and increasing digital distribu-
tion revenues. Circulation revenues only accounted for
21.9 % of total revenue (PY: 24.2 %).
The other revenues of € 465.7 million were 4.5 % below
the prior-year figure (€ 487.5 million). Primarily, consolida-
tion effects had an impact (including in particular the sale
of Talpa Germany and Smart AdServer). When adjusted
for such effects they increased by 4.2 %. Overall, other
revenues represented a share of 14.1 % (PY: 16.0 %) of
the total revenues.
Compared to the prior year, total expenses increased by
6.7 % to € 3,175.7 million (PY: € 2,977.3 million). The
increase is predominantly due to consolidation effects of
acquired companies.
Compared to the prior-year figure, purchased goods
and services increased slightly by 2.4 % to € 1,013.5
million (PY: € 990.0 million). Due to investments in com-
panies with less intensive purchased goods and services,
the ratio of purchased goods and services to total reve-
nues fell to 30.8 % (PY: 32.6 %).
The increase in personnel expenses by 12.9 % to
€ 1,100.3 million (PY: € 974.4 million) resulted predomi-
nantly from the inclusion of subsidiaries acquired in the
prior year and in the financial year, and the higher number
of employees within the digital business models segment.
The average number of employees grew in 2015 by 7.9 %.
Depreciation, amortization, and impairments
amounted to € 199.8 million and were considerably lower
than the prior-year figure of € 255.6 million, despite con-
solidation effects and investments in intangible assets with
increasing effects. In the previous year, impairment losses
of € 33.0 million were applied within the framework of the
valuation of real estate held for sale, as well as impairment
losses on goodwill within the Marketing Models segment.
27
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic report
The net income from continuing operations amounted
to € 304.6 million (PY: € 235.7 million). The adjusted net
income from continuing activities at € 279.3 million was
above the prior-year level (€ 251.2 million).
Net Income (continuing operations)
€ millions
Net income (continuing operations)
Non-recurring effects
Depreciation, amortization, and
impairments of purchase price allocations
Taxes attributable to these effects
2015
304.6
2014
235.7
– 98.9
– 45.0
84.9
– 11.3
103.9
– 43.4
Net income, adjusted (from continuing
operations)
279.3
251.2
Attributable to non-controlling interest
58.3
52.3
Adjusted net income from continuing
operations attributable to shareholders
of Axel Springer SE
220.9
198.8
The earnings per share from continuing operations (undi-
luted = diluted) amounted to € 2.50 (PY: € 1.71). Based on
the average weighted shares outstanding in the reporting
period (99.7 million; PY: 98.9 million), the calculated ad-
justed earnings per share from continuing operations
(undiluted = diluted) increased to € 2.22 (PY: € 2.01).
Adjusted net income and adjusted earnings per share are
not defined under International Financial Reporting Stand-
ards, and should therefore be regarded as supplementary
information to the consolidated financial statements.
Other operating income was € 271.8 million, in partic-
ular due to the sale of Runtastic and the Smart-AdServer
group, and therefore significantly above the prior-year
figure (PY: € 164.7 million). The other operating ex-
penses were € 862.2 million, mainly due to the incorpo-
ration of acquired subsidiaries, and therefore above the
prior-year figure (PY: € 757.2 million).
Net investment income amounted to € 24.7 million
(PY: € 81.4 million) which was characterized, in particular,
during the prior year by the profit from the sale of our
interest in iProperty. The operating net investment shown
in the EBITDA amounted to € 3.8 million. (PY: € 10.7
million).
The net financial result was € – 22.2 million, which was
almost at the prior-year figure (PY: € – 21.1 million).
During the reporting period, income taxes amounted to
€– 136.2 million. (PY: € – 78.9 million). The tax rate for
the reporting period of 30.9 % (PY: 25.1 %) was influ-
enced, amongst others, in the financial year as well as in
the prior year by the largely tax-exempt income from
sales of investments.
Earnings before interest, taxes, depreciation, and amorti-
zation (EBITDA) rose by 10.2 % to € 559.0 million com-
pared to the prior-year figure (PY: € 507.1 million). The
generated EBITDA margin of 17.0 % exceeded the level of
the prior year (PY: 16.7 %). The EBITDA of digital activi-
ties increased by 19.4 % from € 358.9 million to € 428.7
million. This meant that based on operative business the
share of digital business of EBITDA rose from 62.4 % to
69.6 %. As a result of the slight decline in depreciation, the
earnings before interest and taxes (EBIT) increased by
13.8 % to € 449.0 million (PY: € 394.6 million). Non-
recurring effects e. g. such as gains or losses on the sale
of business divisions and investments are not included in
EBITDA and EBIT; furthermore, write-downs from pur-
chase price allocations and write-downs linked with the
sale of real estate are not included in EBIT.
28
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic report
Financial performance of the operating
segments (continuing operations)
An adjustment of the segmentation was performed dur-
ing the financial year with regard to the assignment of
individual operational functions. As a result, a part of the
reclassification of costs and earnings between segments
was omitted. Furthermore, the continued transformation
of Axel Springer into a digital publisher by way of
amended cost distributions was taken into account. The
prior-year figures for the segments were adjusted for
comparison purposes.
Classified Ad Models
All Business models which predominantly generate reve-
nues in online classified advertising are summarized in
the Classified Ad Models segment.
The segment is sub-divided into jobs, real estate, and
general/other.
Key Figures Classified Ad Models
€ millions
External revenues
Advertising revenues
Other revenues
Jobs
Real Estate
General/Other
EBITDA1)
Jobs
Real Estate
General/Other
2015
753.1
730.7
22.4
360.7
231.0
161.4
305.0
157.4
107.1
49.5
2014
Change
512.0
47.1 %
492.7
48.3 %
19.3
15.8 %
256.4
40.6 %
193.5
19.4 %
62.1
>100 %
217.7
40.1 %
117.7
33.8 %
92.4
14.9
15.9 %
>100 %
EBITDA maring
40.5 %
42.5 %
Jobs
Real Estate
General/Other
43.7 %
45.9 %
46.4 %
47.8 %
30.7 %
23.9 %
1) Segment EBITDA includes non-allocated costs of € 9.0 million (PY: € 7.2 million).
The Classified Ad Models segment registered the biggest
revenue growth of all segments during the financial year
with revenues of € 753.1 million and growth of 47.1 %
compared to the previous year (€ 512.0 million). Along-
side an improvement in operative results, particularly
from job portals; consolidation effects, amongst other
things, had an influence due to the incorporation of
@Leisure, Jobsite, LaCentrale Immowelt and Yad2.
Adjusted for these effects, revenue growth came to
14.5 %. Also, the increase in advertising revenues by
48.3 % to € 730.7 million (PY: € 492.7 million) was large-
ly attributable to consolidation effects. Adjusted for these
effects, the increase came to 15.5 %.
The EBITDA for the segment rose considerably by 40.1 %
to € 305.0 million (PY: € 217.7 million). As in the case of
revenues, a significant part of the increase can be attribut-
ed to consolidation effects. Adjusted for these effects,
growth came to 17.1 %. The margin fell from 42.5 % to
40.5 %. Here, the inclusion of acquired companies, the
margins of which are below the average value of the seg-
ment margin, is noticeable. Moreover, in the second half,
the additional marketing expenses in the area of real es-
tate portals after first-time consolidation of Immowelt
showed an effect for the first time.
EBIT in the Classified Ad Models segment rose by 38.5 %
from € 198.6 million to € 275.1 million. Depreciation,
amortization and impairments rose by 56.8 % to
€ 29.9 million (PY: € 19.1 million).
Paid Models
The Paid Models segment comprises all business mod-
els that are predominantly used by paying readers. This
segment is subdivided into national and international
paid-content models.
Paid Models National
The circulation and reach figures for selected print offer-
ings in the Paid Model segment as well as the associated
online portals are presented in the following table.
29
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic report
Circulation, Digital Subscriptions, and Reach
Thousands
Bild/B.Z.
Circu-
lation/
Digital-
Subs1)
Change
yoy
Reach2) Change3)
2,158.0
– 9.5 %
10,357.2
0.0 %
Bild am Sonntag
1,078.7
– 6.9 %
8,393.9
– 3.1 %
bild.de (total)
291.2
25.4 %
19,435.0
bild.de
(stationary)
bild.de (mobile)
-
-
-
-
16,637.0
7,983.0
-
-
-
Die Welt/
Welt Kompakt
Welt am Sonntag/
Welt am Sonntag
Kompakt
195.5
– 5.3 %
670.4
0.2 %
400.7
0.0 %
910.8
2.8 %
welt.de (total)
69.4
25.9 %
14,694.0
welt.de
(stationary)
welt.de (mobile)
-
-
-
-
10,303.0
6,487.0
-
-
-
1) Source: IVW, average paid circulation 2015; For bild.de (total) and welt.de (total):
IVW, digital subscriptions (paid content), monthly average 2015 (May-Dec) vs. 2014
(May-Dec).
2) Source: ma 2016 Pressemedien I; For bild.de and welt.de: AGOF 2015– 10, Unique
Users.
3) Compared to ma 2015 Pressemedien II.
The focus of the national digital Paid Models remained to
sign up paying subscribers in the area of stationary Inter-
net. For this purpose, marketing campaigns with exclu-
sive events were carried out, amongst others, for sub-
scribers of digital paid models from BILDplus and WELT.
Both BILDplus and the corresponding offerings from
WELT showed a clear increase in the number of sub-
scribers to digital offers.
The circulation numbers of the print media in the Paid
Models segment declined in financial year 2015, due to
market trends, while the reach values increased slightly
in some cases.
BILD newspaper published a single nationwide special
edition in the reporting period (PY: two editions). With a
circulation of approx. 42 million copies, “BILD zur Ein-
heit” was distributed on October 1, 2015, free of
charge to nearly all households in Germany, to com-
memorate the 25th anniversary of German reunification.
This special issue was successfully marketed to adver-
tising customers.
Paid Models International
The reach of the business portal Business Insider, circula-
tion and reach figures for the selected mass-circulation
dailies within the countries of our joint venture Ringier Axel
Springer Media as well as the net reach of the corre-
sponding online portals are presented in the table below.
Circulation and Reach
Tsd.
Business Insider (total)
Business Insider (USA)
Business Insider
(USA, stationary)
Business Insider
(USA, mobile)
onet.pl
Fakt4)
fakt24.pl
Blikk5)
blikk.hu
Blic6)
blic.rs
Circu-
lation
Change
yoy
Reach
Change
yoy
-
-
-
-
-
- 67,627.81)
45.6 %
- 41,495.92)
46.6 %
- 15,414.52)
19.2 %
- 28,403.62)
68.5 %
- 15,323.23)
– 6.9 %
307.6
– 5.3 %
1,504.4 – 16.6 %
-
-
3,947.93)
8.9 %
127.8
– 4.5 %
738.7
– 7.1 %
-
-
760.53)
13.9 %
97.3
– 8.7 %
690.8 – 15.0 %
-
-
2,774.43)
– 4.1 %
1) Source: comScore USA, own estimates, monthly average (Jan-Dec 2015).
2) Source: comScore USA, monthly average (Jan-Dec 2015).
3) Source: comScore Europa, monthly average (Jan-Dec 2015); blikk.hu, monthly average
(Jun-Dec 2015).
4) Poland. Circulation: ZKDP, 2015 (Jan-Dec) vs. 2014 (Jan-Dec.); Reach: PBC
General, 2015 (Jan-Nov) vs. 2014 (Jan-Nov).
5) Hungary. Circulation: MATESZ, 2015 (Jan-Dec) vs. 2014 (Jan-Dec); Reach:
Millward Brown, TNS, 2015 (Jan-Sep) vs. 2014 (Jan-Sep).
6) Serbia. Circulation: Company Information, 2015 (Jan-Dec) vs. ABC, 2014 (Jan-Dec);
Reach: Ipsos Strategic Marketing, 2015 (Jan-Dec) vs. 2014 (Jan-Dec).
In 2015, Business Insider saw significant growth in its
reach, driven predominantly by very strong growth in its
mobile reach. There is no data for mobile reach devel-
opment comparable with the net reaches of the online
30
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic report
portals in other European countries illustrated in the table.
As a result, the table for these portals does not reflect
the dynamic growth based on the increasing use of
mobile terminal devices. However, this is of real im-
portance to some of our digital activities. The circulation
and reach figures of our international print media de-
clined in line with market conditions.
Key Figures Paid Models
€ millions
2015
2014
Change
External revenues
1,582.2
1,617.5
– 2.2 %
Advertising revenues
Circulation revenues
Other revenues
652.1
721.3
208.8
671.0
– 2.8 %
735.3
– 1.9 %
211.2
– 1.1 %
National
1,169.7
1,228.8
– 4.8 %
Advertising revenues
Circulation revenues
Other revenues
International
Advertising revenues
Circulation revenues
Other revenues
465.5
559.5
144.7
412.5
186.6
161.8
64.2
497.7
– 6.5 %
576.9
– 3.0 %
154.2
– 6.2 %
388.7
173.4
158.3
6.1 %
7.6 %
2.2 %
57.0
12.7 %
EBITDA
National
223.2
251.4
– 11.2 %
170.7
200.0
– 14.7 %
International
52.5
51.3
2.3 %
EBITDA margin
14.1 %
15.5 %
National
International
14.6 %
16.3 %
12.7 %
13.2 %
The total revenues of the Paid Models segment fell by
2.2 % to € 1,582.2 million (PY: € 1,617.5 million). Adjust-
ed for consolidation effects, total revenues were 4.0 %
below the prior-year figure. The structural declines within
the print business were noticeable both in terms of ad-
vertising revenues as well as circulation revenues. Adver-
tising revenues for national Paid Models (–6.5 %) includ-
ed strong comparable values from the previous years as
a result of two BILD special editions and the Soccer
World Cup. Advertising revenues for international Paid
Models increased by 7.6 % as a result of consolidation
effects (including, among others, Business Insider). Ad-
justed for consolidation effects, advertising revenues for
Paid Models were down by 5.9 % compared to the prior-
year figure, with circulation revenues down by 2.2 %.
At € 223.2 million, EBITDA was 11.2 % below the prior-
year figure (€ 251.4 million). In addition to the decline in
revenues, this was also primarily down to the increase in
restructuring expenses from € 24.5 million to € 34.8
million, while launch costs for developing new business-
es of € 12.4 million were below the prior-year figure of
(€ 17.2 million). The margin on the segment fell from
15.5 % in the previous year to 14.1 % in the current fi-
nancial year.
EBIT in the segment Paid Models fell by 11.6 % from
€ 214.3 million to € 189.4 million. Depreciation, amortiza-
tion and impairments fell by 9.0 % from € 37.1 million to
€ 33.8 million.
Marketing Models
The Marketing Models segment comprises all business
models that generate revenues predominantly through
sales to advertising customers of reach-based or per-
formance-based marketing services.
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Economic report
Key Figures Marketing Models
€ millions
External revenues
Advertising revenues
Other revenues
Reach Based Marketing
Performance Marketing
EBITDA1)
Reach Based Marketing
Performance Marketing
2015
878.9
725.1
153.8
298.2
580.7
88.0
73.6
25.0
EBIT in the Marketing Models segment fell by 16.0 %
from € 89.6 million to € 75.3 million. Depreciation, amor-
tization and impairments fell during the reporting period
by 25.1 % to € 12.6 million (PY: € 16.9 million).
Services/Holding
Group Services, which also include the three domestic
printing plants, as well as the holding functions, are
reported within the Services/Holding segment. The
group services are purchased by internal, group-wide
customers at standard market prices.
2014
Change
794.1
10.7 %
651.3
11.3 %
142.7
7.8 %
279.3
6.8 %
514.7
12.8 %
106.5
– 17.4 %
90.8
– 18.9 %
Key Figures Services/Holding
23.7
5.4 %
€ millions
External revenues
2015
80.7
2014
Change
114.4
– 29.4 %
EBITDA margin
10.0 %
13.4 %
Reach Based Marketing
24.7 %
32.5 %
Performance Marketing
4.3 %
4.6 %
1) Segment EBITDA includes non-allocated costs of € 10.6 million (PY: € 8.0 million).
Total revenues in the Marketing Models segment in-
creased compared to the prior-year figure by 10.7 % to
€ 878.9 million (PY: € 794.1 million). Also adjusted for
consolidation effects, revenues increased markedly by
13.0 %. Most of the revenue growth resulted from the
11.3 % increase in advertising revenues. This increase
was mainly attributable to the zanox Group in the area of
Performance Marketing. Growth in other revenues was
7.8 % and was generated within Performance Marketing.
EBITDA in the Marketing Models segment fell by 17.4 %
to € 88.0 million (PY: € 106.5 million). Whilst EBITDA
slightly improved in Performance Marketing, results from
Reach Based Marketing were below the prior-year figure,
which was mainly due to an intensified competitive envi-
ronment at idealo and thus the necessary investments in
product development as well as changes in the portfolio
at aufeminin (amongst others, the sale of Smart AdServer)
and the expenses for the internationalization of the Bonial
Group. The EBITDA margin fell from 13.4 % to 10.0 %.
EBITDA
– 57.1
– 68.5
Total revenues within the Services/Holding segment of
€ 80.7 million were down by 29.4 % compared to the
prior-year figure (€ 114.4 million), predominantly as a
result of the sale of shares of the distribution service
provider IMS Internationaler Medienservice in the first
quarter of 2015.
EBITDA was at € –57.1 million (PY: € –68.5 million). The
improvement was predominantly a result of less non-
operating expenses. Restructuring expenses were
€ 26.7 million (PY: € 22.2 million).
The EBIT in the Services/Holding segment was at € –90.8
million (PY: € –108.0 million). Depreciation, amortization
and impairments of € 33.7 million were below the prior-
year figure (€ 39.4 million).
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Economic report
Financial performance of discontinued
operations
In the previous year, we reported domestic regional
newspapers, TV program guides and women’s maga-
zines as well as the businesses and equity holdings of
Ringier Axel Springer Media in the Czech Republic sepa-
rately as discontinued operations. Both sales were com-
pleted on April 30, 2014.
Liquidity
Financial management
As a general rule, Axel Springer SE 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 in the form of maturity-
matched financing.
Discontinued Operations
€ millions
External revenues
Net Liquidity/Debt
2015
0.0
20141)
181.3
€ millions
Cash and cash equivalents1)
EBITDA
0.0
29.3
EBITDA margin
-
16.2 %
Net income
2.8
668.3
Earnings per share (in €),
basic = diluted
0.03
6.37
Net income, adjusted
0.0
19.7
Earnings per share, adjusted (in €)2)
basic = diluted
0.00
0.17
1) The operating result from discontinued operations only concerns the period until the
closing date as of April 30, 2014.
2) The earnings per share (basic/diluted) adjusted for non-recurring effects, amortiza-
tion and impairments from purchase price allocations were calculated on the basis
of average weighted shares outstanding in the reporting period (99.7 million; PY:
98.9 million).
Non-recurring effects, for example such as gains or
losses on the sale of business divisions and investments
and write-downs from purchase price allocations are not
included in EBITDA. Adjusted net income and adjusted
earnings per share are not defined under International
Financial Reporting Standards, and should therefore be
regarded as supplementary information to the consoli-
dated financial statements.
Financial liabilities
Net liquidity/debt
2015
186.3
2014
383.1
1,252.9
1,050.9
– 1,066.6
– 667.8
1) In 2015, without the purchase price received in connection with real estate sales
amounting to € 67.5 million, attributable to the plan assets created for our pension
obligations.
The increase in net debt reported on December
31, 2015 resulted predominantly from cash outflows
from finalized company acquisitions within the scope of
our digitization and internationalization strategy. This
development was partially offset by payments from the
sale of companies, including in particular the sale of
Runtastic and 2.7 % of our share in Do⁄an TV.
In order to optimize our financing conditions, we have
improved the average interest rate of our credit lines in
the third quarter, increased the financing volume and
extended the term. Besides the Schuldschein (promisso-
ry note) which mature in April 2016 (nominal value of
€ 56.5 million), in April 2018 (nominal value of € 112.0
million), in October 2018 (nominal value of € 220.0 mil-
lion) and in October 2020 (nominal value of € 248.5
million), as of December 31, 2015 there are credit lines in
the amount of € 1,500.0 million, the utilization of which is
due for repayment in July 2020. Both the Schuldschein
and the credit facilities may be used either for general
business purposes or for financing acquisitions.
33
Annual Report 2015
Axel Springer SE
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Economic report
As of December 31, 2015, € 618.0 million (December
31, 2014: € 409.0 million) of the existing long-term credit
facilities were taken as drawdowns. The total available
amount of unutilized short-term and long-term credit
facilities was € 902.0 million on the reporting date (De-
cember 31, 2014: € 511.0 million).
Cash flows
The following presentation of cash flows also includes
discontinued operations.
Consolidated Cash Flow Statement (Condensed)
€ millions
Cash flow from continuing operations
Cash flow from investing activities
2015
369.6
– 546.4
2014
360.8
92.7
Cash flow from financing activities
51.1
– 343.8
Change in cash and cash equivalents
– 125.8
109.6
Cash and cash equivalents as of
December 31
253.8
383.1
Cash flow from operating activities for the continuing
operations in the reporting period was € 369.6 million, a
figure which was, particularly due to higher earnings,
above the value from the prior year (€ 339.2 million).
The cash flow from investing activities of the continuing
operations in the reporting period amounted to € – 538.3
million. (PY: € – 440.8 million). The cash outflows (less
cash and cash equivalents acquired) in the reporting year
for the acquisition of equity shares in consolidated sub-
sidiaries and business units, as well as financial assets
amounting to € 708.5 million (PY: € 572.5 million) were
attributable primarily to the acquisitions of Business Insid-
er, Immowelt, the @Leisure Group, and Thrillist. Further-
more, this figure included increased ongoing investments
in intangible assets, property, plant, and equipment, as
well as in particular the payments in connection with the
sale of Runtastic (€ 105.3 million) and Smart AdServer
(€ 37.0 million) as well as payments from the sale of
2.7 % of our equity stake in Do⁄an TV (€ 63.3 million).
The portion of the purchase price attributed to Axel
Springer from the sale of real estate assets finalized at the
start of 2016 (€ 48.1 million) is also included. Cash flow
from investing activities in the prior year was particularly
attributable to the acquisition of N24, My Little Paris,
Yad2, LaCentrale and Jobsite, as well as the repayment
of a purchase price claim, payments from the sale of the
non-controlling interests in iProperty and 2.6 % of our
share in Do⁄an TV. Discontinued operations in the prior
year predominantly comprised receipt of the purchase
price (net of cash and cash equivalents disposed of and
taxes paid) from the sale of our print activities to FUNKE
Mediengruppe of € 538.3 million.
The cash flow from financing activities in the reporting
period of € 51.1 million (PY: € – 343.8 million), as in the
prior year, was attributable in full to continued operations
and was due to the payment of dividends to sharehold-
ers of Axel Springer SE and more particularly the repay-
ment of financial liabilities. The portion of the purchase
price collected by Axel Springer, attributable to the plan
assets formed for our pension payments, from the sale
of real estate assets finalized at the start of 2016 (€ 67.5
million) is also included. This was paid into the plan as-
sets in January 2016. Payments from the acquisition of
15 % of shares in Axel Springer Digital Classifieds
(€ 446.0 million) and a special distribution of funds of
€ 90.7 million in connection with the completed sale of
our print activities in the Czech Republic were also in-
cluded in the prior year.
34
Annual Report 2015
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Economic report
Financial position
The following presentation also includes the separately
presented assets and liabilities attributable to discontin-
ued operations.
Consolidated Balance Sheet (Condensed)
€ millions
Non-current assets
Current assets
Assets
Equity
Non-current liabilities
Current liabilities
Equity and liabilities
12/31/2015 12/31/2014
5,187.2
4,466.5
1,317.4
1,241.9
6,504.7
5,708.5
2,511.5
2,505.7
2,455.5
2,169.6
1,537.8
1,033.2
6,504.7
5,708.5
An adjustment was performed during the reporting year 2014 (see also the infor-
mation in the notes to the consolidated financial statements under Note (4)).
The consolidated balance sum was € 6,504.7 million,
and therefore higher than at the end of 2014 (€ 5,708.5
million), largely due to acquisitions.
Significant development of the long-term financial posi-
tion resulted predominantly from the increase in intangi-
ble assets by € 728.0 million, resulting in particular from
initial consolidation of Business Insider, Immowelt and
the @Leisure Group. In addition to the designated as
held for sale real estate assets (including associated
financing leasing liability), assets (including goodwill) of
our Swiss print activities in connection with the joint
venture with Ringier, which was completed at the begin-
ning of 2016, were shown separately.
Another reason for the slight increase in current assets
was the initial consolidation of acquired companies. The
decline in cash and cash equivalents and the reduction
of a loan granted in the prior year had a partial offsetting
effect on the immediate payment of a special distribution
of funds finalized during the financial year in connection
with the sale of our print activities in the Czech Republic.
The increase in equity resulted, among others, from the
generated net income, from positive effects arising from
the currency conversion of consolidated financial state-
ments as well as from the adjustment of the discount
rate with regard to the pension accounting. The distribu-
tion of dividends to Axel Springer SE shareholders as
well as other shareholders had a reducing effect. In con-
junction with the consolidation of Immowelt and Immonet,
differences were taken into account to reduce equity, as
well as recording additional minority shares. Furthermore,
the capital stock and capital reserves of Axel Springer SE
were increased by issuing new shares in return for non-
cash contributions for the remaining 15 % of shares in
Axel Springer Digital Classifieds GmbH by € 8.9 million
or € 453.9 million respectively. The difference to the
reduced interests of other shareholders was offset
against equity without impacting income. The equity ratio
was 38.6 % (PY: 43.9 %; an adjustment was performed
for financial year 2014 (see the information in the notes
to the consolidated financial statements, Section (4)).
The increase in non-current debt was mainly due to the
acquisition of companies and the associated increase in
financial liabilities through utilization of our credit line and
the increased latent passive liabilities. The increase in
other liabilities was primarily due to recognition of liabili-
ties from option rights granted for the acquisition or sale
of remaining non-controlling interests. By contrast, provi-
sions for pensions decreased due to adjustment of the
discount rate to 2.4 % to follow the current market level
(as of December 31, 2014: 1.9 %).
The development in short-term debt was particularly due
to liabilities from option rights granted for the acquisition
of remaining non-controlling interests recognized during
the course of the finalized company acquisitions. Further
growth in short-term debt resulted from the reclassifica-
tion of non-current liabilities held for sale related to our
Swiss print activities in conjunction with the joint venture
with Ringier finalized at the start of 2016. Furthermore, a
portion of the financial liabilities was to be reported as
short-term as at the reporting date.
35
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic report
Non-financial performance indicators
Employees
Axel Springer had an average of 15,023 (PY: 13,917)
employees (excluding vocational trainees and journalism
students/interns) in the reporting period. The 7.9 % in-
crease resulted primarily from the higher number of em-
ployees in Classified Ad Models and Marketing Models,
due to acquisitions and organic growth in these segments.
Outside of Germany, Axel Springer had an average of
6,846 employees (PY: 5,727); this accounted for 45.6 %
(PY: 41.2 %). On average, 6,289 of the Group’s total
workforce were women and 8,733 were men. The num-
ber of editors fell during the reporting period by 1.5 % to
2,730; however the number of employees – largely due to
expansion of digital business activities and new equity
stakes – rose by a total of 10.7 % to 11,572 employees.
However, if compared at year-end, the number of editors
has increased by 3.5 %.
Employees by Segments (continuing operations)
Average number per year
2015
2014
Change
Classified Ad Models
3,660
2,580
Paid Models
7,013
7,149
Marketing Models
2,505
2,220
Services/Holding
1,844
1,968
41.9 %
– 1.9 %
12.8 %
– 6.3 %
Group
15,023
13,917
7.9 %
An adjustment of the segment allocation was performed during the reporting year
(see also the information in the notes to the consolidated financial statements under
Note (31)).
The strongest growth occurred in the Classified Ad Mod-
els segment, mainly due to acquisitions, but also to or-
ganic growth. In the Marketing Models segment, the
increase resulted from the growth of reach-based Mar-
keting Models, particularly with regard to the Bonial and
Idealo Group. The decrease in the Paid Models and Ser-
vice Holding segment is primarily due to the reduction in
headcount in IT (infrastructure support), AS Customer
Services, Sales Impact GmbH & Co.KG and the offset
printing plants.
Length of service and age structure
As of the reporting date in 2015, the average length of
service with Axel Springer was 10.4 (PY: 10.5); 41.8 %
(PY: 42.5 %) of employees have worked for the company
for longer than ten years. More than half of all employees
are between 30 and 49 years of age. The proportion of
severely disabled employees in German companies was,
on average over the year, 3.7 % (PY: 3.8 %).
Equal opportunity and diversity
Axel Springer promotes the development of all its em-
ployees equally. Thus in 2010, Axel Springer launched a
new, Group-wide project entitled “Chancen:gleich!” to
increase the percentage of women in senior manage-
ment positions, so as to achieve a better balance be-
tween women and men in the company’s management.
The objective of this program is to increase the percent-
age of women on all management levels to more than
30 %, as a company-wide average. This objective is
being pursued in the form of various initiatives for the
targeted promotion and networking of women and to
increase the percentage of women with regard to new
recruits and promotions. As of December 31, 2015,
women held 27.9 % of management positions within the
Axel Springer Group.
Personnel development
The training and continuing education activities of Per-
sonnel Development have been closely aligned with the
requirements of the digitization movement in prior years.
In addition to established seminars and support pro-
grams, the offering of shorter and unconventional for-
mats has in particular been greatly expanded, leading to
improved networking among individuals as well as the
pure transfer of knowledge. In doing so, Personnel De-
velopment is pursuing the objective of developing Axel
Springer into a permanent “learning organization” that is
able to stand up to change processes. The leverage of
synergies, the exchange of knowledge between the
companies forming part of the Axel Springer family as
well as the communication of new knowledge content
and the accompaniment of the teams with regard to the
introduction of new working methods, such as agile
process work, are equally important.
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Economic report
Research and development
Axel Springer does not have a traditional research and
development department of the kind that industrial enter-
prises maintain. All areas of the company constantly strive
to optimize their existing products and introduce innova-
tive new products to the market. Above all, we seek to
continuously expand our portfolio with innovations in the
digital sector, besides continuously improving our editorial
content and upgrading our journalistic excellence. In that
regard, we pay especially close attention to identifying
changing media usage habits as early as possible.
Further development of classified portals
The development of new offerings also applies to the
Classified Ad Models segment.
StepStone Deutschland introduced new “Liquid Design”
mobile job ads that significantly enhance mobile user
experience. “Irishjobs.ie Company Reviews” were intro-
duced in Ireland, providing candidates with detailed
information about companies as potential employers.
Yad2 has also invested in its mobile offering and devel-
oped a new app for the market for “blue collar” jobs. The
offering is aimed primarily at users who are looking for
temporary jobs in their immediate vicinity and is becom-
ing increasingly popular with employers and job seekers
in the Israeli market.
Further development of Paid Models
The existing platforms for paid content were also sys-
tematically expanded during the financial year. Improve-
ments in the registration process (“Single Sign On”),
integration of additional sales agreements and the tech-
nical processing of subscription transactions (buying
process, cash, postprocessing, etc.) were implemented.
Extensive development work was undertaken for the UP-
DAY project (see page 25) during the course of the year in
conjunction with the partnership with Samsung Electronics
Co. Ltd. that was announced in September 2015.
Further development of marketing services
In the Marketing Models, existing online offers were
continuously developed and supplemented by new ones.
Development of innovative product functionalities and
marketing technologies for increasing reach and use of
offers as well as monetization is a key priority for our
investments. In addition, we also invest in new compa-
nies in an early stage of development, which develop
new business models and technologies. This is either as
a direct investment, or indirectly via investment compa-
nies such as the Project A-Ventures, where Axel Springer
and the Otto Group are both involved, or Axel Springer
Plug & Play Accelerator GmbH, a joint venture with Plug
& Play Tech Center in Silicon Valley.
Sustainability and social responsibility
For Axel Springer, sustainability is the nexus between
economic success and conduct that is both environmen-
tally responsible and socially fair. These three criteria are
firmly anchored in the company’s business strategy.
Therefore, sustainability is an integral part of all the com-
pany’s business processes. The Sustainability Depart-
ment supports all the company’s activities in this area –
ranging from resource efficiency measures to social
responsibility initiatives. This department reports directly
to the Executive Board Chairman. Through our sustaina-
bility strategy, we exercise responsibility for current and
future generations and establish the foundation for long-
term business success.
Since the mid 1990s Axel Springer has published envi-
ronmental reports, and sustainability reports have been
published since 2000. Since 2005 we have published a
sustainability report on a biannual basis, which follows the
full list of indicators of the Global Reporting Initiative (GRI),
the internationally relevant format for sustainability report-
ing. The current sustainability report in "GRI+" format also
documents the "Media Sector Supplement" (GRI+). This
section provides additional indicators that are reflective of
the specific issues encountered by journalism companies.
At the same time, the report focuses on aspects of digiti-
zation which are relevant from a sustainability perspective.
Axel Springer’s sustainability reports are audited by inde-
pendent auditors. The current sustainability report ap-
peared in the middle of 2014 and can be found at
www.sustainability.axelspringer.com. The next sustaina-
bility report will appear in the middle of 2016.
37
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic report
General assessment of the company’s
financial performance, liquidity, and
financial position by the Executive
Board
The strategy of digital transformation was also at the fore
during the 2015 financial year. We have driven digitiza-
tion organically as well as via acquisitions. Key mile-
stones in this context included the acquisition of Busi-
ness Insider in the autumn, as well as the acquisition of
the 15 % stake held by General Atlantic in our digital
classified advertising business in return for shares as part
of a capital increase. EBITDA, EBIT, and the adjusted
earnings per share from continuing operations were all
higher than in the previous year. Net debt has continued
to increase as a result of the acquisitions made. Consid-
ering the strong cash flow, the still exceedingly solid
balance sheet structure, and the cost-effective financing
options available to the company, we find ourselves in a
solid position to realize the necessary investments for
future growth.
We continue to believe that the path of systematic digiti-
zation is the right strategy for assuring and further im-
proving the company’s profitability in the future.
Financial performance, liquidity, and financial position
(continuing operations)
Group Key Figures
(Selection, in € millions)
Total revenues
EBITDA1)
EBITDA margin1)
EBIT2)
Tax rate
Net income
Net income, adjusted2)
Earnings per share, adjusted (in €)2) 3)
Dividend per share (in €)4)
Total dividends4)
Net debt/liquidity5)
Free cash flow6)
2015
2014
3,294.9
3,037.9
559.0
507.1
17.0 %
16.7 %
449.0
394.6
30.9 %
25.1 %
304.6
279.3
2.22
1.80
235.7
251.2
2.01
1.80
194.2
178.1
– 1,066.6
– 667.8
299.8
244.1
1) Adjusted for non-recurring effects, see also the information in the notes to the
consolidated financial statements under Note (32).
2) Adjusted for non-recurring effects and amortization and impairments from purchase
price allocations.
3) The earnings per share (basic/diluted) adjusted for non-recurring effects, amortiza-
tion and impairments from purchase price allocations were calculated on the basis
of average weighted shares outstanding in the reporting period (99.7 million; PY:
98.9 million).
4) Dividend proposal for the financial year 2015.
5) In 2015, without the purchase price received in connection with real estate sales
amounting to € 67.5 million, attributable to the plan assets created for our pension
obligations.
6) Cash flow from operating activities minus capital expenditures, plus cash inflows
from disposals of intangible assets and property, plant and equipment.
38
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic position of Axel Springer SE
Economic position of Axel Springer SE
€ millions
Revenues
Net income
Transfer to retained earnings
Total dividends1)
Dividend per share (in €)1)
2015
2014
2013
2012
2011
925.9
213.5
19.3
194.2
1.80
1,174.6
1,442.8
1,507.1
1,551.2
590.8
412.7
178.1
1.80
186.4
8.3
178.1
1.80
371.9
204.0
167.9
1.70
260.2
92.6
167.6
1.70
1) The dividend for the financial year 2015 is subject to the condition of approval by the annual shareholders’ meeting.
On January 1, 2015, the newspaper printing plants in
Ahrensburg, Berlin-Spandau and Essen-Kettwig, which
had, up to that point, been managed as parts of Axel
Springer SE’s operations, were combined into legally
independent companies. Furthermore, Axel Springer
SE’s WELT Group and the news channel N24 merged at
the start of the financial year under the auspices of the
subsidiary WeltN24 GmbH.
Financial performance
Income Statement (Condensed)
€ millions
Revenues
Other operating income
2015
2014
925.9
1,174.6
136.3
125.3
Purchased goods and services
– 272.9
– 290.4
Personnel expenses
– 266.8
– 382.1
Amortization, depreciation, and impairments
of intangible assets and property, plant and
equipment
Other operating expenses
– 21.4
– 45.7
– 496.3
– 532.1
Net income from non-current financial assets
279.6
52.3
Net interest income
– 28.5
– 32.2
Profit from ordinary activities
255.9
69.7
Extraordinary profit
Taxes
Net income
0.0
797.8
– 42.4
– 276.7
213.5
590.8
Introductory remarks
Axel Springer SE is the parent company of the Axel
Springer Group. Due to its subsidiaries, which Axel
Springer SE controls directly or indirectly, the business
development is subject to the same risks and opportuni-
ties as the entire group. These are presented in the Re-
port on risks and opportunities (see page 44). Also the
anticipations regarding the development of Axel Springer
SE correspond to the essential expectations described in
the Forecast Report (see page 60).
The following statements are based on the separate
financial statements of Axel Springer SE, which were
prepared in accordance with the regulations of the Ger-
man Commercial Code and the German Stock Corpora-
tions Act. The separate financial statements and the
management report will be announced in the Electronic
Federal Gazette and published on the website of Axel
Springer SE.
Business activity
Axel Springer SE is operationally active in the Paid Mod-
els segment and mainly publishes nationwide daily and
weekly newspapers as well as automobile, computer,
and sports magazines. Furthermore, Axel Springer SE, in
its role as a parent company of the Axel Springer Group,
also exercises holding functions, monitors Group-wide
liquidity management and performs other services to
Group companies. The general economic conditions of
Axel Springer SE correspond essentially to those of the
Group and are described in the economic report (see
page 22 et seq.).
39
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic position of Axel Springer SE
Revenues fell by € 248.7 million or 21.2 %. The decline in
distribution and advertising revenues by € 106.5 million
and € 77.4 million respectively can in particular be at-
tributed to the sale of domestic regional newspapers and
the TV program guides and women’s magazines belong-
ing to the Axel Springer Group to FUNKE Mediengruppe,
which was finalized at the end of April in the prior year.
Other revenues fell by € 64.8 million, primarily as a result
of the spin-offs of the printing plants.
Purchased goods and services fell by € 17.5 million to
€ 272.9 million. An increase in expenditure for print ser-
vices was able to be more than compensated for by way
of reduced expenditure for paper and fees. The ratio of
purchased goods and services to total revenues was 30 %
(PY: 25 %).
The personnel expenses of € 266.8 million remained
30.2 % lower than the prior-year figure. The cause of this
was the lower number of employees in particular. This
declined by 44.7 %, from an average of 3,364 in the prior
year to 1,861 in financial year 2015, primarily as a result
of the transfer of employees from the printing plants and
the WELT Group.
Depreciation, amortization and impairments fell by
€ 24.3 million to € 21.4 million, primarily as a result of
the transfer of tangible assets to the newly established
printing plant companies.
Net income from financial assets (€ 279.6 million) sur-
passed the prior year figure by € 227.3 million. The in-
crease resulted primarily from profit transfers (€ 284.5
million; PY: € 35.2 million) which contained significantly
higher profits from sales of investments compared to the
prior year on the one hand, and were also increased by
way of newly concluded profit and loss transfer agree-
ments on the other hand. Furthermore, higher income
from investments (€ 35.7 million; PY: € 19.3 million) and
income from loans (€ 14.3 million; PY: € 10.4 million)
was able to be generated. Higher depreciation, amortiza-
tion and impairments had the opposite impact on finan-
cial assets (€ 54.9 million; PY: € 12.6 million).
Interest income (€ – 28.5 million) improved by € 3.7
million. This was primarily due to prepaid compensation
received in the prior year in conjunction with the restruc-
turing of the promissory note.
Profit from ordinary activities increased by € 186.2 million
to € 255.9 million. The annual net profit was € 213.5
million (PY: € 590.8 million).
Liquidity
Net debt (liabilities due to banks and promissory note
less cash and cash equivalents) on December 31, 2015
amounted to € 1,218.6 million. (PY: € 946.1 million).
In order to optimize the financing conditions, the financ-
ing volume of the credit lines was increased and the term
was extended during the financial year. As well as the
promissory note which mature in April 2016 (nominal
value of € 56.5 million), in April 2018 (€ 112.0 million), in
October 2018 (€ 220.0 million) and in October 2020
(€ 248.5 million), there are credit lines to the amount of
€ 1,500.0 million as of December 31, 2015, the utiliza-
tion of which is due for repayment in July 2020. Both the
promissory note and the credit facilities may be used
either for general business purposes and/or for financing
acquisitions.
By December 31, 2015, € 618.0 million (PY: € 409.0
million) of the existing long-term credit facility was taken
as drawdowns. The total available amount of unutilized
short-term and long-term credit facilities was € 902.0
million on the reporting date. (PY: € 511.0 million).
40
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic position of Axel Springer SE
Financial assets increased by € 1,114.1 million to
€ 5,398.8 million during the financial year. The increase
resulted mainly from additional payments in capital reserves
of subsidiaries in order to finance company acquisitions.
Receivables from associated companies increased by
€ 79.8 million to € 151.6 million, and liabilities owed to
associated companies also increased by € 282.7 million
to € 1,611.4 million, both as a result of Group-wide
liquidity management.
The acquisition of the remaining shares in Axel Springer
Digital Classifieds in return for issuing new shares result-
ed in an increase in equity by € 462.9 million. As of De-
cember 31, 2015, equity amounted to € 2,463.6 million.
(PY: € 1,965.1 million). The equity ratio increased to
42.1 % (PY: 40.8 %).
Provisions decreased by € 56.1 million to € 327.1 million
compared to the prior-year reporting date. This decline was
in particular due to transfers of pension provisions and
other personnel provisions in conjunction with employee
transfers from the printing plants and the WELT Group.
Advance payments in relation to the sale of the publish-
ing building in Hamburg increased other liabilities, which
grew by € 104.3 million to € 200.5 million.
Financial position
Balance Sheet (Condensed)
€ millions
12/31/2015 12/31/2014
Intangible assets, and property, plant, and
equipment
173.7
220.9
Non-current financial assets
5,398.8
4,284.7
Trade receivables
Receivables from affiliated companies
Cash and cash equivalents
Other assets
Total assets
Equity
Provisions
30.1
151.6
36.4
67.0
39.4
71.8
99.9
102.6
5,857.6
4,819.3
2,463.6
1,965.1
327.1
383.2
Liabilities due to banks and promissory
notes bonds
1,255.0
1,046.0
Liabilities to affiliated companies
1,611.4
1,328.7
Other liabilities
200.5
96.3
Total equity and liabilities
5,857.6
4,819.3
Total assets rose by € 1,038.3 million to € 5,857.6 million
during the financial year. Non-current assets amounted to
€ 5,572.5 million (PY: € 4,505.6 million) and accounted
for 95.1 % (PY: 93.5 %) of total assets. 44.2 % (PY:
43.6 %) was covered by equity.
The decline in intangible assets and property, plant and
equipment by € 47.2 million resulted primarily from the
spin-offs of the printing plants, leading in particular to the
transfer of company buildings and technical systems and
machinery.
41
Annual Report 2015
Axel Springer SE
Combined Management Report
Economic position of Axel Springer SE
Profit utilization proposal
Dependency Report
The Supervisory Board and Executive Board propose
that the Company applies the full amount of the distrib-
utable profit of € 194.2 million (PY: € 295.4 million) to
pay a dividend of € 1.80 (PY: € 1.80) per qualifying share
for the 2015 financial year.
The company does not currently hold any treasury
shares, so that all the company’s shares qualify for divi-
dends. However, the number of shares qualifying for
dividends may be reduced in the time remaining before
the annual shareholders’ meeting. In that case, an ad-
justed profit utilization proposal will be submitted to the
annual shareholders’ meeting, without changing the
target dividend of € 1.80 per qualifying share.
The Executive Board of Axel Springer SE submitted the
Dependency Report prescribed by Section 312 of the
German Stock Corporations Act (AktG) to the Superviso-
ry Board and made the following concluding statement:
“According to the circumstances known to the manage-
ment at the time of each transaction with an affiliated
company, Axel Springer SE received adequate consider-
ation for every such transaction and did not take, or fail
to take, any actions in the reporting period, either at the
behest or in the interest of the controlling company or a
company affiliated with the controlling company.”
42
Annual Report 2015
Axel Springer SE
Combined Management Report
Events after the reporting date
Events after the reporting date
The establishment of a further joint venture in Switzerland
contractually initiated between Ringier and Axel Springer
in September 2015 was finalized at the beginning of
January 2016 (see page 25).
The sale of our interest in CarWale, an Indian online
portal for automobiles, which was agreed in November
2015, was also finalized in January 2016 (see page 26).
Additionally, in January 2016, the sale of the first part of
the Hamburg office buildings was completed (see the
information in the Appendix of the Group figures, (11)
and (17))
The Executive Board and Supervisory Board decided in
December 2014 to prepare to change Axel Springer SE
into a partnership limited by shares (KGaA). Still, the
board decided not to pursue the planned change. Fol-
lowing a detailed examination of the conversion, the
company and Dr. h. c. Friede Springer came to the con-
clusion in February 2016 that the legal form of the SE is
the better alternative for the long-term development of
the company and its attractiveness for the capital market.
Axel Springer SE continues to pursue the objective of the
growth trend in becoming the leading digital publisher
and will make use of other suitable capital raising options
where necessary.
43
Annual Report 2015
Axel Springer SE
Combined Management Report
Report on risks and opportunities
Report on risks and opportunities
Risk policy principles and risk strategy
At Axel Springer, we define risks as the possibility of
negative deviations of actual business performance from
the planned targets or objectives, while opportunities
represent the possibility of positive deviations. The risk
policy principles and risk strategy of Axel Springer are
coordinated and closely aligned with the business strat-
egy and business objectives. We do not seek to avoid
risks at all costs, but to carefully weigh the opportunities
and risks associated with our decisions and our business
activities, from a well-informed perspective. Accordingly,
opportunities should be exploited to generate income or
increase the company’s value and risks should be as-
sumed only if they remain within appropriate limits that
are acceptable to the company. Thus, risks should be
limited to a level deemed acceptable by the company’s
management by taking appropriate measures, be trans-
ferred to third parties in full or in part, or, in those cases
where risk mitigation is not considered advisable, be
avoided or monitored closely. All employees are duty-
bound to handle risks responsibly within their own area
of responsibility.
Group-wide risk management system
Taking into account the various national and international
requirements, an increasingly complex and volatile envi-
ronment and a company that is growing and changing in
a dynamic manner, we still managed to develop further
and expand certain elements of internal corporate moni-
toring (Risk Management, Compliance Management,
Internal Control and Internal Audit) during this financial
year as well. There was particular focus on optimizing
existing processes and structures, and integrating new
participations and business areas into the existing risk
management system. We are also focused on ensuring
the continuous improvement of the quality and com-
pleteness of the risk inventory and the corresponding
internal management measures.
The general form of structures and processes in the risk
management system at Axel Springer are based on the
internationally recognized "Enterprise Risk Management
Framework", a framework developed by the Committee
of Sponsoring Organizations of Treadway Commission
(COSO). This links the risk management process to the
internal control system. The use of this holistic, integrat-
ed approach should ensure that countermeasures and
monitoring activities are systematically focused upon the
strategic, operative, reporting-related and compliance-
related objectives of Axel Springer and their risks. In
addition, as much coverage as possible of the entire
company and its activities should be achieved.
To ensure close interlinking of individual subsystems in
the long term which results in an appropriate, effective
monitoring system for Axel Springer, Group-wide coordi-
nation of systems for risk management, compliance
management and the internal control system as well as
the related reporting is carried out by the Governance,
Risk & Compliance central division.
The risk management processes at Axel Springer are
focused in accordance with Section 91 (2) of the German
Stock Corporations Act (AktG) on recognizing and evalu-
ating all significant and existential risks as well as essen-
tial changes in the risk situation as promptly as possible.
It should therefore be assured in accordance with risk
policy principles and risk strategy that corresponding
control and countermeasures can be used in time to
react to such risks. This approach gives us the neces-
sary maneuvering room and allows for the controlled and
responsible management of risks.
The risks at Axel Springer are divided into strategic,
operative, reporting-relevant, and compliance-relevant
risks based on the COSO framework (risk categories).
Insofar it is appropriate and quantifiable, risks are as-
sessed quantitatively with reference to the parameters
“loss amount” (impact) and “probability of occurrence”.
Based on these parameters, risks are assigned to one of
the following risks classes: critical risks, significant risks,
risks to be monitored, and other risks. To achieve focus
on the various risks that are relevant and significant at a
Group level, a materiality limit is established based on
EBITDA, and the classifications are determined from the
depicted risk matrix. Currently, the materiality limit at a
Group level is € 10 million.
44
Annual Report 2015
Axel Springer SE
Combined Management Report
Report on risks and opportunities
Risk Matrix of Axel Springer SE
Critical Risks
Significant Risks
Risks to be Monitored
Other Risks
very
high
50 %
high
25 %
medium
10 %
low
5 %
very
low
e
c
n
e
r
r
u
c
c
O
f
o
y
t
i
l
i
b
a
b
o
r
P
Extent of Damage (€ millions)
very
low
low
medium
high
very
high
0.5
2.5
5
10
A theoretical threat to the company’s survival as a going
concern is assessed by Axel Springer with reference to
the criterion of the gross loss amount and its impact on
the financial position and liquidity (excessive debts and
insolvency) at a Group level. The gross loss amount is
the impact of a risk prior to any risk management
measures being established.
To ensure the effective management and greatest possi-
ble transparency in the presentation of the risk position,
all identified risks are assessed both prior to the imple-
mentation of risk management measures (gross risk
assessment - inherent risk), and after the corresponding
measures are taken (net risk assessment - residual risk).
Whilst overall responsibility for risk management lies with
the full Executive Board, the operational management of
the individual risks falls primarily within the area of re-
sponsibility of the respective company divisions or Axel
Springer Group companies. This includes the early de-
tection and identification, assessment, definition of ap-
propriate measures, the management and monitoring of
such measures and adequate documentation and re-
porting processes.
45
The senior managers of Axel Springer and the manage-
ment of Axel Springer Group companies bear the re-
sponsibility for the content of the risk management sys-
tem implemented within their division or company and
the risks contained therein. As part of the so-called bot-
tom-up procedure, they undertake to participate in the
update campaign that takes place every six months,
along with the systematic and standardized risk inventory
conducted once a year. They must also continuously
monitor any changing risk situations within their division
or company. Significant changes in the risk situation
must be reported immediately to the Corporate Office of
Governance, Risk & Compliance.
This decentralized risk inventory process is supplement-
ed by a centralized risk inventory within the top man-
agement group (top-down procedure), which is accom-
panied and moderated by the Governance, Risk &
Compliance central division.
The purpose of the risk inventories and analyses carried
out in the top-down and bottom-up procedures is to
systematically identify and assess cross-company,
cross-divisional and cross-procedural risks in order to
complete the risk inventory and ensure its quality.
In the Governance, Risk & Compliance division, risk
management activities are coordinated, risks are aggre-
gated up to the Group level, reported risks are checked
in terms of their plausibility, and the completeness of the
required risk reports is monitored. The division is also
responsible for compiling, updating and communicating
the risk management guidelines, all supporting measures,
such as maintaining the risk management software, the
continuous further development of the centralized risk
management system and reporting to the Supervisory
Board and Executive Board.
The semi-annual and ad-hoc risk reports prepared for
the Executive Board and Supervisory Board focus pri-
marily on existential risks and significant risks, along with
the countermeasures adopted and suitable early warning
indicators, to the extent they are available.
Annual Report 2015
Axel Springer SE
Combined Management Report
Report on risks and opportunities
Internal audit system
Group Auditing within Axel Springer SE is organized as a
process-independent staff department, which is under
the control of the full Executive Board in functional terms,
and under the Executive Board member in charge of
Personnel and Finance in disciplinary terms. It provides
consulting and investigations in all Group companies and
divisions in a risk-oriented manner and aligns its activities
with relevant national and international professional
standards.
In particular, Group Auditing has the task of inspecting
the effectiveness of the internal risk management and
control system as well as the compliance management
system based on a risk-oriented inspection plan and to
derive measures for eradicating weaknesses. Implemen-
tation of improvement measures is followed up based on
a systematic process.
The results of individual audit or consultancy mandates
are typically reported to the Executive Board and period-
ically summarized to the Audit Committee of the Super-
visory Board.
To ensure the effectiveness of the internal audit system,
a quality assurance and improvement process is set up,
which provides for external quality assessments
amongst other things in accordance with professional
guidelines.
Report on the financial reporting-related
risk management system and internal
control system pursuant to Section289 (5)
and Section 315 (2) (5) HGB
The (consolidated) financial reporting-related risk man-
agement system and the connected internal control
system are important elements of the internal manage-
ment system of Axel Springer SE, which is also based on
the internationally recognized framework of the Commit-
tee of Sponsoring Organizations of the Treadway Com-
mission (COSO). As emphasized in the concept, the
effective interplay of the risk management system and
internal control system is meant to ensure the effective-
ness and economic efficiency of the Group’s business
activities, as well as the completeness and reliability of its
financial reporting. The (consolidated) financial reporting-
related risk management system and internal control
system comprise all organizational regulations and
measures aimed at the detection and management of
risks related to financial reporting. With a view to the
(consolidated) financial reporting process, the internal
control system is meant to ensure that the Group’s fi-
nancial reports convey a true and fair view of the financial
position, liquidity, and financial performance of Axel
Springer SE and the Axel Springer Group, in compliance
with all relevant laws, regulations, and standards. How-
ever, even an effective, and therefore adequate and well-
functioning internal control system cannot guarantee the
prevention or detection of all irregularities or inaccurate
disclosures.
We consider the following elements of the risk manage-
ment system and internal control system to be significant
with respect to the (consolidated) financial reporting
process:
Processes for identifying, assessing, and documenting
all significant financial reporting-related processes and
risk areas, including the corresponding key controls.
Such processes include financial and accounting pro-
cesses, as well as administrative and operational busi-
ness processes that generate important information
used in the preparation of the separate and consoli-
dated financial statements, including the management
reports of the parent company and the Group.
Process-integrated controls (computer-aided controls
and access restrictions, dual control principle, separa-
tion of functions, analytical controls).
Standardized financial accounting processes, through
the use of an internal, Group-wide Shared Services
Center for most of the consolidated German compa-
nies of the Group.
46
Annual Report 2015
Axel Springer SE
Combined Management Report
Report on risks and opportunities
Group-wide accounting and reporting directives in the
form of accounting guidelines, charts of accounts,
and reporting procedures.
thereby enhancing the effectiveness and economic effi-
ciency of the entire system.
Quarterly communication of information to all consoli-
dated Group companies on current developments re-
lated to accounting, reporting, and the process of
preparing the financial statements, as well as the re-
porting deadlines to be observed.
Assuring the requisite expertise of employees involved
in the financial accounting and reporting process by
means of appropriate selection procedures and training.
Centralized preparation of the consolidated financial
statements (including management report), employing
manual and computer-system controls in respect of
financial reporting-specific connections and depend-
encies.
Protection of financial reporting-related IT systems
against unauthorized access, by means of access
restrictions.
Monthly internal reports (complete income statement,
statement of financial position, cash flow statement)
and monthly reports on all cost units of the Group, in-
cluding analysis and reporting of significant develop-
ments and budget/actual variances.
The effectiveness of the (consolidated) financial report-
ing–related risk management system and internal control
system is systematically reviewed and assessed by
means of periodic control tests; a Group-wide reporting
system ensures that up-to-date information is provided
on a regular basis to the division heads, Executive Board,
and Supervisory Board.
Both the risk management system and the internal con-
trol system are continuously refined. For example, the
financial reporting-related control system is being inte-
grated, extending beyond the area of accounting, on a
step-by-step basis into a comprehensive system of
internal corporate monitoring. Thus, we synchronize and
optimize our control elements on a cross-divisional basis,
Risk areas
If not stated elsewhere, all risks will be mentioned in the
following which have a considerable negative effect on
reaching our company-wide targets. Within the risk areas
described below, risks are typically presented in the
order of their priority for the Group. This method may be
deviated from in order to prevent repetitions and in the
interests of readability.
The risks illustrated below are primarily based on the
2016 forecast period, unless the risks in question relate
to long-term objectives.
Market and competition risks
Internationalization is one of the pillars of Axel Springer’s
strategy alongside focusing on journalism and business
models benefiting from journalism in the broader sense,
as well as digital transformation. As a result, the eco-
nomic and industry-specific developments in many dif-
ferent regions are of key importance to the financial
performance of the Group, in addition to the general
global economic situation. Developments in the Europe-
an Economic Area, the USA and Switzerland in particular
play a decisive role alongside the developments in Ger-
many.
Although above-average growth is forecast for the An-
glo-Saxon region, including in particular the USA, growth
rates in both the European Union as well as Germany are
only expected to grow comparatively slowly. The fact
that individual countries are currently not able to correct
their deficits and that the required structural reforms are
only being implemented slowly is causing a growing
economic chasm between euro zone countries. The
spill-over effect of political issues that remain largely
unresolved, such as the refugee crisis or the conflicts in
the Ukraine and in the Middle East, could have a nega-
tive impact on the global economy, and particularly on
our core markets within the European Union. Another
economic downturn or global financial crisis would in all
likelihood have a negative impact on Axel Springer as
47
Annual Report 2015
Axel Springer SE
Combined Management Report
Report on risks and opportunities
well. This could lead to a significant deterioration in the
revenue situation and a slow-down in online market
growth, and might also put the brakes on digital trans-
formation at Axel Springer. An unplanned reduction in
revenues cannot therefore be ruled out on a national or
international basis, meaning therefore that it poses a
significant risk to all Axel Springer segments.
The digital revolution, demographic changes and techno-
logical advances have led to massive changes in con-
sumption and reading habits. The resulting increase in the
importance and use of digital offerings leads to sustained
revenue reductions in the field of printed publications.
Unpredictable market developments or a further accelera-
tion of this trend could reinforce even further the declines
already factored in on the basis of structural changes.
Furthermore, the general market situation and media
industry is still characterized by intense competition
pressure. This has arisen partly due to the creation of
alliances or mergers between direct competitors (such as
within national marketing) as well as other free-of-charge
offerings within the online and print media sector, putting
pressure on our revenue share and positions in the entire
distribution and advertising business. Furthermore, the
loss of advertising customers due to switching over to
other advertising media such as TV or radio could con-
siderably reduce our advertising revenues, both in print
and online. The pressure on digital advertising revenues
has also increased as a result of the increased use of
mobile devices that make it difficult for advertisements to
be displayed due to their small display surfaces.
High levels of market and competition dynamism are
prevailing in the markets for our Marketing Models and
Classified Ad Models as a result of ever shorter innovation
cycles. Our digital portals are therefore exposed to the
risk that new portals and competitors aiming to break into
the market could jeopardize the existing market position
in the long run. Increasing competition is a threat not only
on the part of the world's leading Internet companies
aiming to penetrate into new market segments and/or the
traditional media business, but also for new companies
with innovative business concepts. As a result, missing
out on market trends and technological developments will
pose an ever greater risk in future as our leading market
position could also be threatened by this.
In order to mitigate the aforementioned market and
competition risks, the environment is monitored in an
intensive and continuous manner, enabling definitive
internal management measures to be derived for the
operational management. At the same time, the digitiza-
tion of our products will be further strengthened, our
journalistic product portfolio will be expanded both na-
tionally and internationally, and our journalistic and tech-
nological competences will be optimized and enhanced.
Adjustments to evolving consumer and reader require-
ments also occur via technical and product-specific
innovations. This will be accompanied by pricing and
product policy measures.
Many of our digital Marketing and Classified Ad Models
are additionally confronted with the risk arising from the
dominant position of major Internet search engines. If, for
example, these search engines change their search
algorithms or expand their business models that com-
pete with our business sectors, this can have noticeable
effects on the future revenue situation. Even small
changes in visibility or in position on the results pages
could lead to significant losses in turnover with certain
business models.
We counter this risk by means of targeted ad place-
ments on search engine results pages and through
search engine optimization as well as the further expan-
sion of our activities in target-group relevant social media
channels and by continuously improving the attractive-
ness of our offerings. Simultaneously, we are focusing on
adequate measures to reinforce the brands and offerings
of Axel Springer SE and their prominence so that their
reach and usage will not be as dependent on services
provided by third parties, particularly the visibility on
search engines.
Furthermore, the spread and use of ad blockers presents
a risk for advertising revenues which must be taken
seriously in the digital advertising sector. Specially pre-
configured browsers and browser add-ons prevent ads
from being displayed on visited web pages. The contin-
48
Annual Report 2015
Axel Springer SE
Combined Management Report
Report on risks and opportunities
ued spread and use of ad blockers could lead to sub-
stantial declines in advertising revenues, not just for Paid
Models but also for our Reach Based Marketing and our
Performance Marketing Models.
We counter the increasing use of ad blockers both with
legal action against the providers as well as with the
development of technical solutions, such as those in
place for BILD.de. The readers must disable the activat-
ed ad blocker or purchase a chargeable “BILD smart”
subscription enabling virtually ad-free access in order to
use the journalistic content.
Through the constant further development of our mobile
applications, we are continuously increasing the degree
of digitization and clarify our strategy of becoming the
leading digital publisher throughout all our segments. By
means of acquisitions, new company start-ups, and the
expansion of existing digital media, we will strive to adapt
to changes in the media world and further promote the
cross-media networking and integration of our brands.
(For more information on this subject, please refer to the
report on the operating segments, beginning on page 12
and also on page 29 in the report on the financial per-
formance of the segments.)
Political and legal risks
The already pronounced concerns of the public, politi-
cians, and consumer protection organizations in matters
of data protection have become even more prominent.
This development has been caused by two factors, the
first being the public debate regarding the use of the
personal data of German citizens by foreign intelligence
services, which was also expressed by the European
Court of Justice as grounds for termination of the so-
called "Safe Harbor Agreement", and the second being
the practice of social networks, search engines, and
other online platforms to collect the data entered by
users and use it for their own commercial purposes.
Consumer protection and data privacy proposals have
also gained significance in the legislative and executive
bodies of the German states and the German Federal
Government, and at European level as well. This trend is
worrisome for digital business models, because they are
reliant upon the use of data. Furthermore, in the absence
of any long-standing and uniform jurisdiction with regard
to new digital business models, this means the legal
position is in some cases unclear and, thus, there is the
latent risk of written warning letters and the allegation of
breaches of law. This uncertainty could increase as a
result of the EU General Data Protection Regulation that
has already been enacted and is due to take effect from
2018. Specifically, such a regulation would affect the use
of so-called "cookies" and similar technologies, the per-
missibility of generating user profiles (profiling and track-
ing), and other measures that necessitate the use of
personal data without prior consent. Furthermore, recent
regulatory proposals are potentially more advantageous
for the providers of registration-required online services
than for advertising-financed online services and adver-
tising networks that do not maintain direct contacts with
end customers, because the popular, registration-
required online services already possess a large, person-
alized subscriber base, making it much easier for them to
obtain permission from their users. Major restrictions in
advertising and customer-retention possibilities resulting
from this Data Protection Regulation could result in sub-
stantial revenue losses for mobile and web-page-based
business models.
The Internet activities of public-sector broadcasters
currently pose another risk to our business. ARD in
particular has intruded into the business sphere of the
private-sector press and distorted the competition
environment with a text-oriented news app for Tagess-
chau financed by license fees. Faced with competition
from this cleverly designed “free offer”, it is naturally
hard for publishing companies to successfully offer paid
apps.
After conducting fruitless negotiations with ARD and
NDR, Axel Springer SE and seven other publishing com-
panies, with the full support of the newspaper publishers’
association BDZV, filed a lawsuit against ARD and NDR
in the Competition Division of the Cologne Regional
Court. In September 2012, the court granted the claim in
most respects. The defendants appealed this ruling and
prevailed in the appellate instance before the Cologne
Higher Regional Court. The plaintiffs appealed against
this before the Federal Supreme Court, the appeal was
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upheld and referred the case back to the Cologne Higher
Regional Court for a new trial.
in business activities along with far-reaching conse-
quences regarding revenues and reputation.
Depending on the outcome of the legal case, it could be
much more difficult for Axel Springer to successfully offer
paid journalism content in the fast-growing mobile market.
Our business will continue to be exposed to the competi-
tion-distorting effects of state-owned media and the
regulatory pressure of legislators on all relevant levels of
government, despite the countermeasures we have taken.
Breaches of confidentiality agreements and violations of
insider trading regulations, as well as the incorrect publi-
cation of data or the non-observance of data privacy
laws, could lead to economic or legal consequences for
Axel Springer. Moreover, the reputation of Axel Springer
or its brands could be damaged by negative reporting or
social media campaigns on this subject, even if no laws
have been broken.
To minimize such risks, Axel Springer has adopted vari-
ous control mechanisms, consultation and approval rules,
introduced guidelines and initiated extensive training
programs, among other measures. The company intends
to intensify such activities in the future.
IT risks
For Axel Springer, a Group with an increasingly high
degree of digitization of its offering and internal process-
es, there are numerous significant risks regarding the
availability of IT systems used, as well as the confidential-
ity and integrity of information.
Due to the high degree of integration of information
technology within business processes, Axel Springer is
reliant on high availability of IT components. Failure of IT
infrastructure as well as the applications that are driven
by said infrastructure, such as those used to view
chargeable content on BILD.de, can have considerable
influence on availability. Possible causes of such impair-
ments are internal factors such as increasing complexity
of systems and the infrastructure which has grown over
a prolonged period of time, but also include external
factors such as, for example, computer criminality via
DDoS attacks. At worst, these could cause interruptions
Additional IT risks are classified as important if the confi-
dentiality of information and data integrity is compro-
mised as a consequence. In consideration of the grow-
ing importance of paid content offerings and services
requiring authentication, and the related collection and
storage of personal data, as well as the steadily growing
threat of computer criminality, the careful handling and
protection of the above-mentioned customer data are of
great importance.
For this reason targeted measures have been and in-
deed are being undertaken to avoid or to limit the effects
and probability of occurrence of criminal activities and
the failure of IT components as far as is possible.
Measures such as back-up systems, emergency data
centers, firewalls, use of encryption, identity & access
management, consolidation and standardization and
hardening of systems are used to reduce risk. The stated
measures are continuously analyzed and expanded or
improved if necessary.
Reputation risks
Reputation risks are not recorded separately in Axel
Springer’s risk inventory as they arise in the majority of
cases as a secondary risk or effect in conjunction with
the primary risks. Axel Springer has an exposed position
and any risk that occurs can cause a great deal of atten-
tion. As a result, countermeasures that aim to prevent
the risk in question from occurring are primarily used to
prevent reputation risks. Possible reputation risks range
from the violation of journalistic independence to the
breach of country-specific laws and programs for equal
treatment and equal opportunity.
Axel Springer implements numerous internal and external
measures to counter reputation risks, such as observing
local laws and any structural changes that may subse-
quently be necessary, and carrying out information cam-
paigns and public relations activities. As an internationally
active and expanding enterprise, Axel Springer has
adopted a catalog of social standards known as the
International Social Policy, as a binding guideline for
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social integrity, applicable to all our companies through-
out the world. Failure to observe this International Social
Policy could lead to a serious loss of image. In addition,
we also expect our business partners to adhere strictly
to our corporate principles – for example in the produc-
tion of advertising materials and product supplements.
One step that Axel Springer has taken to mitigate such
risks has been to integrate the International Social Policy
into the Group-wide Code of Conduct and the standards
of behavior contained therein. In addition, all relevant
corporate guidelines, particularly those applicable to
procurement activities, contain a binding reference to the
procurement-relevant standards of the International
Social Policy.
Axel Springer has instituted an advanced sustainability
management program that meets international standards.
The overly late detection of possible ecological or social
conflicts relative to the procurement of resources along
the value chain of wood, pulp, paper, and recycled ma-
terials could harm the Group’s reputation. To minimize
this risk effectively, we work closely together with experts
in the wood, pulp, and paper industry and with environ-
mental protection organizations. We also conduct moni-
toring measures across the value chain. Our internal and
external communications on this subject are character-
ized by openness and transparency.
Strategic and other risks
Significant strategic risks arise primarily for Axel Springer
from decisions regarding capital expenditures in new
business segments and models, as well as companies
that perform differently in the long term than expected or
are unable to compete within the market in a sustainable
manner and/or are superseded by new business models.
These risks could lead to negative financial results and
impairment losses recorded on the balance sheet when
permanent impairment is expected in the context of the
impairment test which is to be carried out. This risk could
materialize in our activities in the Marketing Models,
Classified Ad Models, and national and international Paid
Models segments. Strategic risks alongside the ex-
pected opportunities result from the internationalization
and digitization strategy of Axel Springer and the associ-
ated expansion in the USA, the acquisition of Business
Insider being particularly at the fore here.
In general, the business segments and models of our
interests are, however, extremely heterogeneous, so that
so-called cluster risks are limited by means of diversifica-
tion. Such risks are further diversified by means of pre-
ventative measures such as the clear investment criteria,
in accordance with which we check new investments as
part of our M&A activities, as well as active portfolio and
investment management, the recruitment and retention
of highly qualified managers, and the continuous moni-
toring of business and market developments. In addition,
the internal steering functions are continuously adapted
in line with the Group’s development, both in terms of
organization as well as personnel.
The business activities undertaken in eastern Europe
also form part of Axel Springer’s internationalization
strategy. These activities are combined in the Ringier
Axel Springer Media AG joint venture and form part of
the Paid Models segment. Potential risks and uncertain-
ties arise on the one hand for the Axel Springer Group
from the activities and political framework conditions in
the eastern European region.
On the other hand, the joint venture is confronted with
the same risks as those which have already been stated
for the Paid Models for the entire Group. They range
from the structural transformation from print to online, to
financial risks arising due to the level of internationaliza-
tion. The dependency of certain individual distribution
partners as a result of the heavily concentrated Polish
press distribution market must also be taken into ac-
count as a significant individual risk. This dependency
entails the latent risk of there being a higher proportion of
open receivables remaining outstanding in the case of
payment defaults by individual companies, resulting
therefore in considerable losses. To limit this risk, a por-
tion of the potential loss on receivables is already cov-
ered by way of an appropriate insurance policy.
The challenges faced within the marketing environment
in Germany are also growing. This is caused, amongst
other things, by the increasingly specific nature of cus-
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tomer requirements (multichannel marketing) or by new
competitors and the establishment of a marketing alli-
ance created by several newspaper publishers. For this
reason, Media Impact GmbH & Co. KG, the joint venture
marketing company with the FUNKE Mediengruppe as a
minority shareholder, is looking to restructure in order to
position itself better from a strategic perspective and
highlight its own strengths compared to the competition.
This could, under certain circumstances, lead to revenue
losses in the implementation phase.
Axel Springer is of course exposed to natural risks that
continue to pose significant risks to the Group. Possible
damage caused by natural disasters may lead to material
losses and business interruptions. We counter these risks
in two ways: Firstly, structural and organizational measures
have been undertaken to raise the Group’s security stand-
ards even further, and secondly insurance cover is in place
to reduce any possible financial consequences.
Although Axel Springer is not considered to be a primary
terrorist target based on current knowledge, the threat
level has increased significantly as a result of the current
global political situation. This risk is countered,
amongst other things, with enhanced security standards,
more stringent access regulations and controls, and
comprehensive education and training of all security staff.
The financial risk caused by potential material losses and
business interruptions is hedged here by way of appro-
priate insurance policies.
The modern Axel Springer Campus is being built in the
heart of Berlin, helping to support the cultural transfor-
mation into a digital publisher. When planning and imple-
menting such a major project, it is inevitable that Axel
Springer will be confronted with construction-related risks
that are significant based on the value of capital expendi-
ture alone. To mitigate potential risks, an appropriate
general contractor agreement has been concluded, and
project controlling and reporting structures have been
established for the purpose of continuous monitoring.
Personnel risks
The individual skills, professional competence, and
commitment of our employees contribute greatly to the
success of the Axel Springer Group. As a consequence,
the loss of specialist staff and management and the
associated loss of expertise and capacity issue is a sig-
nificant risk which we actively look to counter. A primary
focus of human resource management is the targeted,
progressive development of employees and motivation
with the aid of focused and continuous training, attrac-
tive bonus schemes, flexible working time models and a
better work/life balance. Age-related employee turnover
is also acted upon at an early stage with systematic
succession planning and development. As a result, the
transfer of a valuable wealth of experience and personnel
demands should be ensured in a sustainable manner.
In addition, the increasingly difficult situation regarding the
recruitment of junior staff as well as potential management
staff also represents an ever-increasing risk. It is increas-
ingly difficult to recruit qualified staff, and this is a result of
demographic change, and also a matter of increasing
competition on the human resources market. IT specialist
staff are increasingly in demand, particularly with regard to
the increasing digitization of business models. As a result,
we have set up an in-house recruiting team that has al-
ready been very successful in discovering candidates for
digital business activities. With the current employer mar-
keting campaign, we want to differentiate ourselves signifi-
cantly from other companies and portray Axel Springer as
an innovative and modern employer.
Financial risks and risks associated with the use of
financial instruments
The financial risks especially relevant to Axel Springer are
default risks associated with loans and financial invest-
ments as well as interest rate risks.
Axel Springer granted loans to business partners as part
of the transaction with the FUNKE Mediengruppe and
during the course of other business activity. The risk of
potential default on loan claims is countered by gathering
information on the economic and financial situation of the
business partner, along with corresponding analysis and
preparation of such data. We are able to quickly recognize
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default risks using this method. In addition, these business
partners have granted us security to their assets.
With regard to our investment in Do⁄an TV Holding A.S.,
the potential risk of financial loss – associated with the
risk of depreciation of the investment – arising from the
existing contractual agreement regarding the sale is fully
hedged by bank guarantees.
However, in order to combat potential risks of financial
loss with regard to the investment of surplus cash not
needed for operations, such cash is invested on the basis
of stipulated criteria set out in a corporate guideline which
sets loss limits that may not be exceeded, as a means,
among others, of limiting risks. The investment volume is
divided up amongst several banks to avoid a cluster risk.
Existing interest rate risks arise primarily from financial
assets or liabilities with variable interest rates. However
this risk is limited. During the financial year, we primarily
financed ourselves via Schuldschein that are mainly fixed
interest-bearing. An additional existing interest rate risk
that could affect the Schuldschein and credit lines with
variable interest rates is minimized, where required, by
using interest rate derivatives.
Significant financing risks resulting from the uncertain
outlook for the financial sector are not evident for the
Axel Springer Group at the present time because the
credit lines in the amount of € 1.5 billion (through 2020)
obtained for liquidity assurance purposes have been
committed by the participating banks with binding effect.
The interest rate is linked to a ratio of net debt and earn-
ings indicator of the Axel Springer Group, meaning there-
fore that the utilization of credit lines would result in a
higher interest burden in the case of negative perfor-
mance. As part of the loan agreements, we must also
observe a number of additional conditions that would
give the banks a right of termination if they are not ob-
served. We have observed these conditions, and there-
fore we consider the risk of accelerated maturity of bor-
rowed amounts to be minor. Based on our continuous
observation of the money markets, capital markets, and
credit markets, we have concluded that companies with
outstanding creditworthiness and strong reputations can
always raise funding at favorable conditions. Furthermore,
Axel Springer can generate liquidity reliably, thanks to its
broadly diversified customer base and the absence of
significant payment delays and defaults.
There are corresponding currency risks to the Group
caused by Axel Springer’s level of internationalization.
Risks arise from expenses, revenues, investment income
and expenses, and receivables and liabilities denominat-
ed in foreign currencies (transaction risk).
The risk of value changes arising from exchange rate
fluctuations are avoided primarily in that operating costs
are incurred in the same countries in which we sell our
products and services. Residual currency risks arising
from cash flows denominated in foreign currencies are
immaterial because we generate most of our earnings in
the euro zone. Currency risks inherent in receivables and
liabilities denominated in foreign currencies (excluding
contingent purchase price liabilities) with net exposures
of € 5 million or more per foreign currency are usually
hedged by means of maturity-matched forward ex-
change deals.
Local-currency cash flows generated in non-euro zone
countries are either reinvested to expand local business
operations, or invested with Axel Springer SE and
hedged by means of forward exchange deals or distrib-
uted in the form of dividends. Therefore, the liquidity risk
arising from exchange rate changes affecting cash flows
denominated in foreign currencies is limited.
Currency effects arising from the translation of financial
statements denominated in foreign currencies (currency
translation risk) are recognized directly in the equity item
of comprehensive income. Therefore, Axel Springer does
not hedge such currency risks.
The risks arising from financial instruments and hedging
activities are discussed in detail in Section (35) of the
notes to the consolidated financial statements.
Overall risk assessment
The overall risk situation of the Axel Springer Group is
composed of the individual risks in all risk categories of
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the consolidated subsidiaries and corporate divisions.
Taking into account the interaction and aggregation of
individual risks, there are, at present, no discernible risks
that could threaten the continued existence of the Axel
Springer Group, or could significantly affect the Group's
financial position, financial performance and liquidity in
the forecasting period 2016. This applies on the proviso
that there is no dramatic deterioration of the economic
situation in our markets and the media industry, and,
thus, a significant deterioration in the market and finan-
cial performance of the Group. Furthermore, risk con-
centrations are being reduced by means of diversification,
internationalization, optimization of the brand and prod-
uct portfolio, and digitization. Slight changes in risk posi-
tions are indeed recorded compared to the prior year,
particularly as a result of the acquisitions and sales of
companies completed, and the associated capital ex-
penditures. However, these changes have not signifi-
cantly influenced the company’s overall risk situation and
risk tolerance.
Opportunities management
The opportunities management system established at
Axel Springer aims to ensure the success and continued
existence of Axel Springer sustainably by systematically
exploiting opportunities that arise. As part of the man-
agement, strategic and planning processes, potential
opportunities induced both internally as well as externally
are identified and assessed for the company divisions and
Group companies. This is based for example, on market
and competition monitoring activities and analyses as well
as regular dialog with external experts. In considering the
risks involved, identified opportunities are fundamental to
corporate decision-making and the introduction of corre-
sponding measures, such as measures regarding invest-
ments in new markets or technologies. Responsibility for
the management of opportunities is taken in as decentral-
ized a manner as possible by the operational divisions
and their management or senior managers.
Opportunities
According to the definition of risk, opportunities are
understood to refer inversely to positive deviations from
defined targets. They may arise from unscheduled and/or
non-budgeted positive developments and/or events. This
applies if there is insufficient certainty regarding the
occurrence of events, or the framework conditions and
environment in question develop in a more favorable
manner than expected. In addition, potential arising from
long-term strategic decisions that had not been fully
budgeted may lead to additional growth.
Strategic opportunities
In a constantly changing environment we continue to
develop our company so that we are able to face global
and industry-specific challenges in the future with inno-
vative and tailored solutions.
Axel Springer’s digitization strategy offers especially
promising opportunities for generating additional growth
and revenues based on highly positive developments
within the digital markets. Axel Springer exploits these
developments by investing in new or future-oriented
technologies, entering into new forms of cooperations,
the ongoing digital transformation of journalistic products
and the consistent linkage of various media. This linkage
will deliver the most comprehensive multimedia coverage
in the German media landscape, spanning digital, print,
and live-TV with an emphasis on quality journalism as the
hallmark in all media channels. In addition, the Group
invested in expanding Paid Models in the Internet and
expanded its digital portfolio through additional acquisi-
tions of Marketing and Classified Ad Models. Through
this approach, we want to continuously draw closer to
the goal of becoming the leading digital publisher.
On the one hand, acquisition of equity stakes in compa-
nies with promising digital business models in early stage
and growth phases in their lifecycle provides us with the
option of establishing contacts within the industry and to
other founders and investors, and also grants access to
new ideas and business models. On the other hand, we
also obtain access to co-investments, which could re-
main open, if necessary, for subsequent acquisition of a
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majority stake. In the event of substantial development of
the associate companies, we can also profit from a sig-
nificant appreciation in value.
We also see further opportunities for growth in the inter-
nationalization strategy and, closely linked to this, enter-
ing into new markets and/or expanding in existing mar-
kets. As a result, there is significant potential associated
with the introduction of business models successfully
established in the home market, the acquisition of exist-
ing and successfully established companies, and enter-
ing into strategic partnerships in international growth
regions. We also have an advantage over our competi-
tors in that we have already attained strong positions in
many countries.
Market and competition opportunities
If the global economic situation continues to stabilize and
– as is currently forecast by leading economic institutes –
grows at the rate expected, then this could have a posi-
tive effect on our revenue development. The decisive
factor will be what spill-over effect regional conflicts and
crises will have on our core markets subject to the highly
interconnected nature of the global economy. Neverthe-
less, Axel Springer believes it is in a strong position to
exploit the opportunities that may arise with its early
investments in the projected regional and digital growth
markets. Even a negative development of the overall
economy could create opportunities. Competitors could
pull out of the market, thereby strengthening our own
position. Furthermore, there may be the option of acquir-
ing companies at low prices, then subsequently expand-
ing market share in existing markets and investing in new
markets with growth potential.
Additional industry-specific potential to generate un-
planned revenue for Axel Springer may also arise from
higher advertising spending on individual advertising
media than forecast by advertising associations. This
could in particular be the case if the media mix changes
in our favor, or, in other words, if advertising spending
flows into the digital sector driven by journalistic content.
Axel Springer agreed a strategic partnership with Sam-
sung in 2015. The result of this partnership is upday, a
content platform that aggregates and curates journalistic
content from trusted sources and can display such con-
tent in a personalized manner together with self-created
editorial content. The link between technology and jour-
nalism is established by way of standardized and suc-
cessive integration into Samsung’s relevant products.
The aim therefore, amongst other things, is for a product
to become established in the market, reducing the de-
pendency on reach-based drivers such as Google News
and Facebook Instant News.
In addition to the challenges that occur, the technological
developments seen in the marketing business also con-
stitute further opportunities for additional advertising
revenues. Employing our know-how and exploiting suita-
ble technical solutions within the field of programmatic
advertising as well as targeted customer agreements by
way of targeting measures, results in promising addition-
al opportunities within the advertising business.
The increased internationalization of Axel Springer result-
ing from corresponding investments represents an addi-
tional benefit to the Group within the advertising busi-
ness. In comparison to competitor publishers who are
more heavily focused on the German-speaking region,
we are able to offer globally active customers a wider
reader base and/or higher reach for advertising cam-
paigns, all from a single source.
All of Axel Springer’s divisions and companies work on
continuous improvement of technologies and processes
in order to maintain and expand their position in the face
of competition. This also includes an intensive, Group-
wide exchange of successful business models, technol-
ogies, and processes. It is assumed that this exchange
and the exploitation of potential synergies at the compa-
ny headquarters in Berlin will be supported by the
planned Axel Springer Campus and, thus, the spatial
proximity of our undertakings.
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Political and legal opportunities
The ancillary copyright for press publishers (Leistungss-
chutzrecht für Presseverleger) entered into force at the
beginning of August 2013, with the aim of further en-
hancing the protection of intellectual property. This stipu-
lates that license fees shall be chargeable to search
engine providers for using publisher content, unless such
use relates to “individual words” or “the smallest text
snippets“. The market-leading search engine provider
rejected this. At present, there is a revocable “free-of-
charge” consent granted by the publishers to Google to
use their text snippets in search results. In December
2015, VG Media, a copyright collective representing
more than 200 digital publisher offerings, lodged a com-
plaint in the dispute with Google over the ancillary copy-
right. This may have a positive impact on Axel Springer
and its digital offerings, depending on the outcome
and/or any agreement reached.
Operational and other opportunities
Axel Springer is continually working on the optimization
of operational processes and structures. Axel Springer
therefore regards inter-company, cross-divisional and
cross-functional interlinking as a key factor for success in
order to produce innovative and tailored content as well
as provide high quality products and services for our
customers. Smooth interlinking and the digital transfor-
mation of processes could lead to a number of un-
planned synergy effects on the cost situation, thus lead-
ing to positive deviations from the budget. The increased
and suitably supported exchange of technological know-
how between Axel Springer Group companies, for ex-
ample, also offers additional opportunities to further
improve our position in our core markets.
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Forecast report
The ifo Institute no longer expects any price-dampening
momentum from crude oil prices in the current year. In
addition, price rises in the domestic economy are ex-
pected to become more intense. As a result, the con-
sumer price level is expected to increase by 1.0 % on
average over the course of 2016. According to the ifo
forecast, the unemployment rate will remain stable in
2016 at 6.4 %. This will mean around 2.8 million unem-
ployed persons on average over the course of the year.
Thanks to the strong demand for labor, the number of
gainfully employed persons will reach a total of 43.3
million. This corresponds to an increase of around
370,000 persons. The ifo Institute estimates that the
migration of refugees will help to increase the potential
labor force in 2016 by around 350,000 persons.
The ifo Institute anticipates a slight acceleration in eco-
nomic stimulation for central and eastern Europe.
Price levels and local currencies appear to be stable, and
interest rates are likely to remain low. Economic stimulus
is provided by companies and private household, but
also increasingly from government measures.
Industry environment
The German Advertising Association (ZAW) assumes in
its forecast for 2016 an upward trend for advertising
budgets, partially driven by sports events such as the
European Soccer Championships in France and the
Olympic Games in Rio de Janeiro.
According to the current advertising market forecast by
ZenithOptimedia, an increase of 4.7 % is expected
for 2016 worldwide (nominally). ZenithOptimedia there-
fore corrected its forecast of + 5.0 % from Septem-
ber 2015 downwards. The expected swing in expecta-
tions is in principle based on the major sports events, the
European Soccer Championships in France and the
summer Olympic Games, as well as the presidential
elections in the USA. According to ZenithOptimedia,
mobile devices and online moving images are current
drivers in the global advertising market.
Anticipated economic environment
General economic environment
The International Monetary Fund (IMF) slightly lowered its
growth forecast for the world economy in its outlook
from January 2016. The IMF states weaker prospects for
emerging countries in particular as being the reason for
doing so. Furthermore, economic growth in the USA is
expected to be less dynamic than the IMF had even
forecast in autumn 2015.
According to the forecast, the world economy will expand
in 2016 by 3.4 % in real terms. The IMF expects growth of
2.6 % in the USA in real terms. The high dollar exchange
rate is indeed putting the brakes on US performance.
However, growth is being supported by the favorable
developments seen on the housing and employment
market. According to the forecast, the Chinese economy
will expand by 6.3 %, adjusted for price. The IMF expects
an increase in Gross Domestic Product of 1.7 % for the
euro area in real terms for 2015. Such growth will proba-
bly be driven primarily by lower energy prices and the
continuation of the favorable financing conditions.
The ifo Institute expects to see a continuing upward trend
in 2016 for the German economy. Accordingly, eco-
nomic performance will increase by 1.9 % in real terms
over the whole year. Private consumption will continue to
back growth. Thanks to increasing incomes and an over-
all drop in charges for taxes and duties of households,
the ifo Institute therefore forecasts an increase of 2.0 % in
private consumption, adjusted for price.
Construction investments should increase substantially
again in 2016 with a real increase of 2.1 %. However,
despite the favorable financing conditions in place, in-
dustrial investment will grow at a weaker rate of 3.5 %
compared to the current year, adjusted for price. Ac-
cording to the ifo Institute, capacities will on the one
hand continue to be used as normal, whereas on the
other hand the export industry is only expected to ex-
pand at a moderate rate. While German exports are
expected to grow in 2016 by 4.4 % in real terms, imports
are even expected to increase by 5.3 % as a result of the
robust domestic economic situation.
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Currently available forecasts for the German advertising
industry predict mixed developments for the different
types of media. ZenithOptimedia expects net advertising
market revenue (marketing revenues net of rebates and
agent’s commission) in Germany for 2016 to increase by
1.6 % (nominal). Thus, the total advertising market will
not grow as fast as the general economy, which is ex-
pected to expand at a nominal rate of 3.6 % (+1.9 % in
real terms) according to the ifo Institute. Growth in the
advertising market is driven by digital (+7.6 %), TV
(+2.5 %) and outdoor (+3.0 %). ZenithOptimedia is pre-
dicting a drop in net advertising revenues for newspa-
pers (– 3.4 %), magazines (– 2.1 %) and radio (– 0.3 %).
The forecast data also reflects the structural shift of
advertising expenditures in favor of digital platforms. The
proportion of total advertising expenditures targeted to
online and mobile platforms will rise further.
Global trends also set the tone for Germany. Growth in
the advertising market is technology-driven, particularly
in the mobile, online moving images (video) and pro-
grammatic growth segments. Due to the continued
spread of mobile devices, technical improvements in
advertising forms and increase in the variety of advertis-
ing forms, and technical innovations in controlling multi-
device campaigns, considerable growth in advertising
expenditure is expected.
Progressive automation of an advertising booking via
programmatic buying platforms is also seen as a driver
for online and mobile advertising.
ZenithOptimedia’s forecast for the international mar-
kets in which Axel Springer conducts business through
its own subsidiaries paints a mixed picture. In 2016, the
net advertising volume of the online market in western
Europe will increase by 12.1 % to US–$ 40.8 billion,
based on the assumption of consistent exchange rates.
Anticipated Advertising Activity 2016 (Selection)
Change in net ad revenues compared
to prior year (nominal)
Germany
United Kingdom
France1)
Poland1)
Switzerland2)
Hungary
Belgium2)
Slovakia1)
Netherlands
Serbia1)
Austria1)
Ireland
Italy1)
Spain1)
USA
Israel
India1)
Brazil
Online
Print
7.6 %
– 2.9 %
17.9 %
– 6.2 %
4.6 %
– 7.3 %
10.6 %
– 14.4 %
10.8 %
– 2.9 %
6.8 %
– 1.5 %
10.0 %
– 2.0 %
14.5 %
– 4.8 %
7.6 %
– 4.7 %
11.0 %
8.7 %
11.4 %
– 3.4 %
12.9 %
2.3 %
7.4 %
– 4.5 %
12.0 %
1.4 %
15.6 %
– 4.6 %
7.7 %
– 10.1 %
25.0 %
11.5 %
4.2 %
– 6.4 %
Source: ZenithOptimedia, Advertising Expenditure Forecast (December 2015).
1) Excluding classified ads, that means exclusively sales from display advertising.
2) Gross advertising revenues (excluding classified ads).
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Forecast report
The revenue forecast for the Group was upgraded dur-
ing the year. Following the revenue development in the
first nine months, an increase in total revenues in the mid
single-digit percentage range was forecast in November
for the entire year, whereas previously an increase in the
low to mid single-digit percentage range had been ex-
pected. Expectations for revenues and EBITDA as well
as for EBIT were slightly exceeded and met for the ad-
justed earnings per share.
Expectations for the Classified Ad Models and Paid
Models segments were met for the segments. In Paid
Models the revenues developed in the expected range.
The decrease of the EBITDA/EBIT occurred due to un-
planned restructuring expenses, slightly higher than
initially forecasted. An update of the forecast for reve-
nues and EBITDA/EBIT was performed in August for the
Marketing Models segment following publication of the
half year figures in August. We expect revenues to in-
crease by an amount in the mid to high single-digit per-
centage range after better than expected development in
the Performance Marketing area, whereas previously an
increase in the low to mid percentage range had been
expected. The upgraded revenue forecast for the seg-
ment was slightly exceeded. Up until then, we had also
expected EBITDA/EBIT to decrease in the mid to high
single-digit percentage range, amongst other things due
to planned expenditure for increasing competitiveness,
and the internationalization of digital business models
within the field of Reach Based Marketing. The EBITDA/-
EBIT forecast for the segment was adjusted to a low
double-digit to significant decline, particularly as a result
of portfolio changes. This adjusted prognosis was con-
firmed by the development of the business in the sector
of marketing Models.
Group
Strategic and organizational orientation
The highest strategic priority for Axel Springer is to pur-
sue the consistent digitization of our business. We aim to
attain the goal of becoming the leading digital publisher
by further developing our digital offerings in Germany and
abroad, and by making targeted acquisitions.
Comparison of forecast with actual performance
The forecast targets published in March 2015 were
essentially attained.
Group
Revenues
EBITDA
EBIT
Earnings per share,
adjusted
Segments
Forecast
low to mid single-digit
percentage increase
high single-digit percentage
increase
high single-digit percentage
increase
low double-digit percentage
increase
2015
8.5 %
10.2 %
13.8 %
10.3 %
Forecast
2015
Revenues
Classified Ad Models
Significant
increase
Paid Models
low single-digit percentage
decline
Marketing Models
low to mid single-digit
percentage increase
Services/Holding
EBITDA/EBIT
Classified Ad Models
Significant
decline
Significant
increase
Paid Models
low double-digit percentage
decline
Marketing Models
mid to high single-digit
percentage decline
Services/Holding
Significant
improvement
47.1 %
– 1.7 %
10.7 %
– 24.5 %
38.9 %/
37.2 %
– 15.9 %/
– 17.0 %
– 17.7 %/
– 16.3 %
35,3 %/
27.3 %
59
Annual Report 2015
Axel Springer SE
Combined Management Report
Forecast report
the prior-year figure. We also expect a decline in EBITDA
in the mid to high single-digit percentage range due to
planned investments for new digital business models,
primarely for Business Insider and upday.
We expect the total revenues of the Marketing Models
segment to increase by an amount in the mid single-digit
percentage range, based on the anticipated growth of
advertising revenues revenues. We expect a decline in
other revenues due to the sale of Talpa Germany and
Smart AdServer in the prior year. We expect EBITDA
around the previous year level, due to, amongst other
things, planned expenditure for the internationalization of
digital business models and planned investments in
product development and technology within the field of
Reach Based Marketing.
Due to decreasing printing plant revenues and lower
rental revenues in connection with the sale of parts of the
building on the Hamburg site, we expect a considerable
decline in revenues in the Services/Holding segment.
Due to the revenue development, amongst other things,
we expect a decline in EBITDA in the mid single-digit
percentage range compared to the prior year figure.
For EBIT we expect developments for the Classified Ad
Models and Paid Models to be similar to those for
EBITDA, while the EBIT development for Marketing
Models and the Services/Holding segment should be
presumably under that of the EBITDA development, due
to increased depreciation, amortization and impairments
and it will therefore be slightly declining.
Anticipated liquidity and financial position
Based on the capital expenditure projects planned to
date, investments in property, plant, and equipment, and
intangible assets are likely to be higher than the corre-
sponding prior-year figure with regards to the liquidity
and financial position. Financing will be provided by
operating cash flow.
Anticipated business developments and financial
performance of the Group
We anticipate in the Group that total revenues will be
higher for the 2016 financial year than the prior-year figure
by an amount in the low single-digit percentage range.
Adjusted for consolidation effects, primarily due to the
deconsolidation of the activities in Switzerland, growth
would be higher and would be in the mid single-digit
percentage range. We assume that the planned increase
in advertising revenues will more than compensate for the
decline in circulation revenues and other revenues.
We expect a rise in EBITDA in the low to mid single-digit
percentage range. In this case, a rise in EBITDA in the
Classified Ads Models segment is expected, whilst the
EBITDA, of Marketing Models segment should finish
around the level of the prior year due to planned invest-
ments in product quality and also in digitization. For Paid
Models and Service Holding, the EBITDA is expected to
be below the previous year level.
For EBIT we expect developments to slightly lower than
for EBITDA due to higher depreciation, amortization and
impairments.
For the adjusted earnings per share, we expect an
increase in the mid-to-high single digit percentage.
Anticipated business developments and financial
performance of the segments
The revenues of the Classified Ad Models segment are
expected to rise in the low double-digit percentage range
due mainly to organic growth. We expect EBITDA to
increase in the lower two-digit percentage range due to
increased investments in IT infrastructure and higher
Marketing expenditure.
In the Paid Models segment we expect a decline in total
revenues in the mid single-digit percentage range for the
2016 financial year. This is predominantly due to consol-
idation effects, especially of the activities in Switzerland.
We expect a decline in circulation revenues, amongst
other reasons, due to the structural declines within the
national and international print business. We expect
advertising revenues and other revenues to be almost at
60
Annual Report 2015
Axel Springer SE
Combined Management Report
Forecast report
Dividend policy
Subject to the condition of sound financial performance
in the future, Axel Springer has a dividend policy of sta-
ble or slightly increased dividend distribution, while also
allowing for the financing of growth.
Anticipated development of the workforce
The average full-year number of employees in 2016 will
be higher than in 2015. This is mainly due to organic
growth and acquisitions in connection with the digital
transformation of the Group’s business.
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. However, actual developments
could possibly be much different from the assumptions
applied and thus from the business plans and trend
forecasts prepared on the basis of those assumptions
Basically, the forecast is based on the assumption that
no significant deterioration in the economic environment
will follow.
The forecasts for EBITDA, EBIT, and the adjusted earn-
ings per share do not reflect any possible effects result-
ing from possible future acquisitions, divestitures, and
capital measures as well as from unplanned restructuring
expenses.
EBITDA, EBIT, and the adjusted earnings per share do not
contain any non-recurring effects, any writedowns from
purchase price allocations, nor any associated tax effects.
Non-recurring effects are defined as effects resulting from
the acquisition and sale of subsidiaries, divisions, and
equity investments, as well as writedowns and writeups of
equity investments, effects resulting from the sale of real
estate, impairments, and writeups of real estate used for
operational purposes. Purchase price allocation
writedowns include the expenses of amortization, depre-
ciation, and impairments of intangible assets, and property,
plant, and equipment acquired in connection with the
acquisition of companies and business divisions.
We consider EBITDA, EBIT, and adjusted earnings per
share to be suitable indicators for measuring the opera-
tional profitability of Axel Springer, because these indica-
tors ignore effects that do not reflect the fundamental
business performance of Axel Springer.
EBITDA, EBIT, and adjusted earnings per share are not
defined under International Financial Reporting Stand-
ards and should therefore be regarded as supplementary
information.
61
Annual Report 2015
Axel Springer SE
Combined Management Report
Disclosures and explanatory report of the Executive
Board pursuant to takeover law
Disclosures and explanatory report of the
Executive Board pursuant to takeover law
This section contains the disclosures pursuant to Sec-
tions 289 (4), 315 (4) HGB, along with the explanatory
report of the Executive Board pursuant to Section 176 (1)
(1) AktG.
Composition of subscribed capital
Following the capital increase implemented in December
2015 (for more information see page 9), the company’s
subscribed capital amounts to € 107,895,311. It is divid-
ed into 107,895,311 registered shares. The shares can
only be transferred with the company’s consent (regis-
tered shares of restricted transferability, see below). The
company 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, treasury shares do not
confer any rights to the company (cf. Section 71b AktG).
(Please refer to page 65 for information on the compa-
ny’s treasury shares).
Restrictions on voting rights or the
transfer of shares
Transfer restrictions
By virtue of Article 5 para. 3 of the company’s Articles of
Incorporation, shares of Axel Springer SE and subscrip-
tion rights can be transferred only with the company’s
consent. Such consent must be granted by the Execu-
tive Board, although internally, it is the Supervisory Board
that adopts the resolution to grant such consent. Ac-
cording to the company’s Articles of Incorporation, such
consent can be refused without indication of reasons.
However, the company will not arbitrarily refuse its con-
sent to the transfer of company shares.
To the company’s knowledge, transfer restrictions based
on the German law of obligations (Schuldrecht) exist by
virtue of the following agreements:
A share transfer restriction agreement was concluded
between Dr. Mathias Döpfner, Brilliant 310. GmbH,
Axel Springer AG and M.M. Warburg & Co. KGaA on
July 31 / August 4, 2006. Under this share transfer
restriction agreement, the direct and indirect purchase
or disposal of the shares of Axel Springer SE by Bril-
liant 310. GmbH or Dr. Mathias Döpfner are made
contingent on the prior consent of Axel Springer SE,
in accordance with the company’s Articles of Incorpo-
ration.
By virtue of a declaration dated August 14, 2012,
Dr. Mathias Döpfner acceded to a pool agreement
(“pool agreement”) concluded between Dr. h. c. Friede
Springer and Friede Springer GmbH & Co. KG, in re-
spect of the 1,978,800 shares of Axel Springer SE
that were given to him as a present by Dr. h. c. Friede
Springer on the same date. In total, the pool agree-
ment covers 52,826,967 voting shares of Axel
Springer SE (“pool-bound shares”). Under the terms
of the pool agreement, a pool member who wishes to
transfer his pool-bound shares to a third party must
first offer these shares for purchase to the other pool
members (purchase right). The purchase right expires
two weeks after the purchase offer. The purchase
right does not apply in the case of transfers to certain
persons who are related to the pool member.
The 8,955,311 newly registered shares of Axel
Springer SE issued to General Atlantic Coöperatif U.A.,
Amsterdam, Netherlands, under the capital increase,
are subject to a holding period in accordance with the
agreements made between the company and General
Atlantic Coöperatif U.A. This amounts to 6 months for
50 % of these shares, and 18 months for the remain-
ing 50 %.
Other transfer restrictions based on the German law of
obligations exist in connection with the share ownership
programs conducted in the 2012, 2013 and 2014 finan-
cial years, as well as the current financial year, for the
employees of the Axel Springer Group. In general the
shares acquired as part of the share ownership program
in 2012, 2013, 2014 and 2015 are subject to a minimum
holding period of four years (i.e. until May 31, 2016, May
62
Annual Report 2015
Axel Springer SE
Combined Management Report
Disclosures and explanatory report of the Executive
Board pursuant to takeover law
31, 2017, May 31, 2018, and May 31, 2019). During the
minimum holding period, employee shares are held in a
blocked account with Deutsche Bank AG.
Shareholdings that represent more than
10 % of voting rights
The minimum holding periods for shares issued under
share ownership programs in earlier years have already
expired.
In connection with the Virtual Stock Option Plan 2011
and 2014 for senior executives, the beneficiaries are
required to personally invest in shares of Axel Spring-
er SE. These shares are not subject to any restrictions
on disposal, but any disposition of these shares would
cause the corresponding virtual stock option rights to
lapse without replacement or compensation (for infor-
mation on the virtual stock option plan 2011 and 2014
for senior executives, see page 80).
The same applies to the virtual stock option plans 2012
and 2014 for members of the Executive Board (see page
77 for information on the virtual stock option plans 2012
and 2014 for Executive Board members).
Voting right restrictions
Under the above-mentioned pool agreement between
Dr. Mathias Döpfner, Dr. h. c. Friede Springer and Friede
Springer GmbH & Co. KG, the voting rights and other
rights attached to the pool-bound shares are to be exer-
cised in the annual shareholders’ meeting of Axel
Springer SE in accordance with the corresponding reso-
lutions of the pool members, regardless of whether and
how the respective pool member voted on the resolution
of the pool. The voting rights of pool members in the
meeting of pool members are based on their voting
rights in the annual shareholders’ meeting of Axel
Springer SE, depending on the number of pool-bound
voting shares held. To the extent that Friede Springer
GmbH & Co. KG indirectly holds shares in Axel Spring-
er SE its voting rights are based on the imputed number
of pool-bound voting shares indirectly held by Friede
Springer GmbH & Co. KG.
At the end of financial year 2015, the following direct and
indirect shareholdings in the equity of Axel Springer SE
represented more than 10 % of voting rights in the com-
pany: Axel Springer Gesellschaft für Publizistik GmbH &
Co, Berlin, Germany (direct), AS Publizistik GmbH, Berlin,
Germany (indirect), Friede Springer GmbH & Co. KG,
Berlin, Germany (indirect), Friede Springer Verwaltungs-
GmbH, Berlin, Germany (indirect), Dr. h. c. Friede
Springer, Berlin, Germany (indirect), and Dr. Mathias
Döpfner, Potsdam, Germany (indirect).
Information on the amounts of the above-mentioned
shareholdings may be found in the disclosures pertaining
to voting rights notifications in the notes to the 2015
financial statements of Axel Springer SE,
www.axelspringer.com/financialpublications, and in the
section entitled “Voting rights notifications” of the com-
pany’s website at www.axelspringer.com/votingrights.
Shares endowed with special rights that
confer powers of control
There are no shares endowed with special rights that
confer powers of control.
Manner of controlling voting rights
when employees hold shares in the
company’s capital and do not directly
exercise their rights of control
In connection with the bonus share and share ownership
program for employees conducted in 2009 and the
share ownership programs for the years 2011, 2012,
2013, 2014 and 2015, Deutsche Bank AG was initially
entered into the share register as the third-party holder of
the shares transferred to the employees. However, each
employee is free to be registered personally as a share-
holder in the share register.
63
Annual Report 2015
Axel Springer SE
Combined Management Report
Disclosures and explanatory report of the Executive
Board pursuant to takeover law
Statutory provisions and provisions of
the Articles of Incorporation pertaining
to the appointment and dismissal of
Executive Board members and
amendments to the Articles of
Incorporation
The company’s Articles of Incorporation provide that the
Executive Board of Axel Springer SE must be composed
of at least two persons. The Supervisory Board decides
on the number of Executive Board members, and on the
appointment and dismissal of Executive Board members.
According to Article 46 para. 1 of the EU Regulation on
European Companies (SE-VO), the maximum term of
office for members of the Executive Board of a European
company (Societas Europaea, SE) is six years; in the
present instance, this maximum term is shortened to five
years by virtue of Article 8 para. 2 sub-para. 1 of the
Articles of Incorporation of Axel Springer SE correspond-
ing to the previous maximum term pursuant to Section (1)
(1) of the German Stock Corporations Act (AktG). The
term of office can be renewed or extended for a period
of no more than five years thereafter (for details, see
Article 8 para. 2 of the company’s Articles of Incorpora-
tion; Article 46 para. 1 and para. 2 SE-VO). If more than
one person has been appointed to the Executive Board,
the Supervisory Board is authorized to appoint one of
those members as the Chairman (Article 8 para. 3 sub-
para. 2 of the Articles of Incorporation of Axel Spring-
er SE). If a required Executive Board member is lacking,
the court is authorized, in urgent cases, to appoint the
necessary member at the request of one involved party
(Article 9 para. 1 letter c) ii) SE-VO in conjunction with
Section 85 (1) (1) AktG). The Supervisory Board is au-
thorized to revoke the appointment of an Executive
Board member and the Executive Board Chairman for an
important reason (for details, see Article 39 para. 2 sub-
para. 1, Article 9 para. 1 letter c) ii) SE-VO, Section 84 (3)
(1) and (2) AktG).
Insofar as obligatory laws or provisions of the Articles of
Incorporation do not require a greater majority, amend-
ments to the company’s Articles of Incorporation require
a resolution of the annual shareholders’ meeting carried
by a majority of the votes cast, or provided that at least
one half of the company’s share capital is represented,
by a simple majority (see Article 21 para. 2 sub-para. 2 of
the company’s Articles of Incorporation in conjunction
with Section 51 (1) of the European Company Imple-
menting Act (SEAG), Article 59 para. 1 and 2 SE-VO).
The latter does not apply to an amendment changing the
business object and purpose of the company, or to a
resolution regarding the relocation of the registered head
office of the SE to another member state pursuant to
Article 8 para. 6 SE-VO (see Section 51 (2) SEAG, Arti-
cle 59 para. 1 and 2 SE-VO). An amendment of the
corporate governance principles set forth in Article 3 of
the company’s Articles of Incorporation requires a ma-
jority equal to at least four fifths of the votes cast repre-
sented in the adoption of the resolution (see Article 21
para. 3 of the Articles of Incorporation).
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 Executive Board to issue
or buy back shares
The Executive Board was authorized, in accordance with
Article 5 para. 4 of the Articles of Incorporation, and
based on the resolution of the annual shareholders’
meeting of April 14, 2015, to increase the capital stock
by April 13, 2020, subject to the approval of the Supervi-
sory Board, by issuing registered shares of restricted
transferability, either in a single tranche or in several
tranches and in return for cash and/or non-cash contri-
butions (including mixed non-cash contributions), up to a
total of € 11,000,000 (authorized capital).
64
Annual Report 2015
Axel Springer SE
Combined Management Report
Disclosures and explanatory report of the Executive
Board pursuant to takeover law
By partially drawing down this authorized capital, the
capital stock was increased by € 8,955,311 and
8.955.311 new registered shares of Axel Springer SE
were issued to General Atlantic, with effect from Decem-
ber 9, 2015. The subsequently remaining authorized
capital in accordance with Article 5 para. 4 of the Articles
of Incorporation empowers the Executive Board to in-
crease the capital stock, subject to the approval of the
Supervisory Board, by € 2,044,689 by issuing new regis-
tered shares of restricted transferability.
By way of a resolution at the annual shareholders' meet-
ing on April 14, 2011, (Agenda Item 7), the Executive
Board was authorized with approval of the Supervisory
Board until April 13, 2016, to acquire treasury shares of
the company up to 10 % of the existing share capital on
adoption of the resolution. In the context of the company
being converted into an SE with effect of December
2, 2013, as a precautionary measure in case non-
registrable resolutions would be held to not remain valid
after the conversion, it was resolved at the annual share-
holders’ meeting of April 16 2014, to authorize the Com-
pany again to acquire and use treasury shares, with a
prolonged term until April 15, 2019, whilst revoking the
previous authorization. Acquisition must only take place
on the stock exchange or via a public offer directed at all
shareholders or a public invitation to submit an offer to
buy.
Along with the shares held by the company or attributa-
ble to the company in accordance with Article 5 SE-VO
in conjunction with Sections 71a ff. AktG, the shares
purchased by virtue of the foregoing authorization may
not at any time exceed 10 % of the company’s capital
stock. Details concerning this authorization are provided
in the invitation to the annual shareholders’ meeting of
April 16, 2014, which is available on the website of Axel
Springer SE (see AgendaItem 8 and the Executive
Board’s report on this subject).
At the end of financial year 2015, the company held no
treasury shares.
Axel Springer SE does not have any contingent capital.
Significant agreements of the company
subject to the condition of a change of
control resulting from a takeover offer
With the exception of regulations in the Schuldschein
and consortium loans stated in the following, as well as
contractually entitled cancellation rights for part of Ex-
ecutive Board members in case of a change of control
(for more information see page 65 below and page 78 of
this Annual Report), the company has not made any
major agreements that would take effect in the event of a
change of control due to a takeover.
The company placed a Schuldschein with a nominal
volume of € 500,000,000 on the capital market in
April 2012; the financing volume was increased by
€ 137,000,000 for optimizing financing terms in October
2014 by partial cancellation, conversion, and subscrip-
tion of the existing promissory note, meaning therefore
that the total volume was € 637,000,000, and callable in
six tranches. The lender can demand, in the event of a
change of control, that the receivables held can be par-
tially or fully paid back early within a 90 day period.
Aside from specific exceptions that relate to the share-
holders that currently control Axel Springer SE, a change
of control is understood to mean, in the context of the
Schuldschein, the acquisition of shares of Axel Spring-
er SE representing more than 50 % of the capital stock
and/or voting rights by one or more parties acting to-
gether.
With regard to the consortium loans re-negotiated in July
2015 and totaling € 1,500,000,000, the lenders are also
entitled to terminate the loan in the event of a change of
control. Aside from specific exceptions that relate to the
shareholders that currently control Axel Springer SE, a
change of control is understood to mean the acquisition of
shares of Axel Springer SE representing more than 50 %
of voting rights by one or more parties acting together.
65
Annual Report 2015
Axel Springer SE
Combined Management Report
Indemnification agreements between the
company and Executive Board members
or employees in the event of a change of
control
Some Executive Board members have the right to termi-
nate their employment contracts in the event of a change
in control. A change of control in the context of these
agreements shall not apply if the controlling shareholder
Dr. h. c. Friede Springer no longer holds and/or intends
to control the majority of shares, either directly or indi-
rectly. In such a case, they will have the right to receive
payment of their base salary for the most recently nego-
tiated remaining contractual term (some of the eligible
Executive Board members will have the right to receive
payment of an amount equal to at least one year’s base
salary) and/or a lump sum amounting to the total remu-
neration for the duration of the original residual term; the
amount of the aforementioned payments is typically
limited. Furthermore, the company will pay the pro-rated
percentage of the success-based compensation for the
period of time served in the year of resignation. The
employment contracts of the members of the Executive
Board do not provide for any other compensation if the
employment relationship is terminated as a result of a
change in control.
There are no such indemnification agreements with other
employees of the company.
66
Annual Report 2015
Axel Springer SE
Combined Management Report
Corporate Governance report
Corporate Governance report
There follows a report by the Executive Board – also on
behalf of the Supervisory Board – on corporate govern-
ance at Axel Springer, in conformity with the recommen-
dation set out in Section 3.10 of the German Corporate
Governance Code (GCGC). This section also contains
the management declaration pursuant to Section 289a
of the German Commercial Code (HGB) and the Com-
pensation Report.
I. Future-related Section
The Company fulfills the recommendations of the “Ger-
man Corporate Governance Code” (the “Code”) in the
version of May 5, 2015, as published by the German
Federal Ministry of Justice and for Consumer Protection
in the official announcements section of the Federal
Gazette of June 12, 2015, subject to the deviations set
out and reasoned below:
Good corporate governance as a guiding
principle
At Axel Springer, sound corporate governance is consid-
ered to be a crucial element of responsible management
and supervision geared to increasing the company’s
value on a sustainable basis. It promotes the trust and
confidence of our national and international investors,
customers, employees, and the public in the manage-
ment and supervision of the company and is therefore an
essential basis for the company’s long-term success.
In this respect, we are guided by the German Corporate
Governance Code (GCGC). We have taken appropriate
measures to implement and ensure compliance with the
recommendations of GCGC. The Corporate Governance
Officer is the Executive Board member in charge of Fi-
nance and Personnel. The implementation of and adher-
ence to the recommendations of GCGC are reviewed
continually.
Management declaration pursuant to
Section 289a HGB
Declaration of Conformity pursuant to Section 161
AktG
The Executive Board and Supervisory Board published
the following Declaration of Conformity on November 9,
2015:
In accordance with Section 161 of the German Stock
Corporation Act ("AktG"), the Executive Board and the
Supervisory Board of Axel Springer SE declare the fol-
lowing:
1. Consideration of relationship between the compensa-
tion of the Management Board and that of senior man-
agement and the staff overall, particularly in terms of its
development over time (Section 4.2.2 sentence 6 of the
Code)
The Supervisory Board pays close attention to the ap-
propriateness and customary level of the Executive
Board’s compensation and takes into account numerous
criteria, including, but not limited to, the criteria set out in
Section 87 AktG and Section 4.2.2 sentences 4 and 5 of
the Code. Nevertheless, as a matter of precaution, a
deviation is declared from the recommendation in Sec-
tion 4.2.2 sentence 6 of the Code because of this rec-
ommendations’ ambiguity and because it is doubtful if
the particular emphasis on the relation between the
compensation of the Executive Board and the compen-
sation of senior management and the staff overall cor-
rectly reflects this criterion’s relevance when assessing
the appropriateness and customary level of the Executive
Board’s Compensation.
2. Disclosure of the individual Executive Board compen-
sation in tabular form as part of the compensation report
(Section 4.2.5 sentences 5 and 6 of the Code)
The disclosure of the Executive Board compensation is
made in accordance with legal requirements taking into
account the so-called “opt-out”-resolution of the Share-
holders' Meeting on April 16, 2014. Based on this reso-
lution, and in accordance with Section 286 para. 5 sen-
tence 1 and Section 314 para. 2 sentence 2 of the
German Commercial Code (“HGB”), the individual com-
pensation of the members of the Executive Board is not
disclosed in the Company's annual financial and annual
consolidated financial statements for the financial years
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2014 through 2018 (included). As long as a respective
“opt-out”-resolution of the Shareholders’ Meeting is
effective, the Company will not include in its compensa-
tion report the individual information recommended by
Section 4.2.5 sentences 5 and 6 of the Code.
3. Chairman of the Audit Committee (Section 5.3.2 sen-
tence 3 of the Code)
The Audit Committee of the Supervisory Board is chaired
by Mr Lothar Lanz, who is a former member of the Exec-
utive Board of the Company whose appointment ended
less than two years ago.
The Supervisory Board is convinced that Mr Lanz’ long-
standing experience as CFO, his specialist knowledge
and his personality make him an exceptionally suitable
Chairman of the Audit Committee. Therefore, the Super-
visory Board is of the opinion that Mr Lanz should chair
the Audit Committee.
4. Specification of a regular limit of length of membership
in the Supervisory Board and taking into account of such
limit when making recommendations to the competent
election bodies (Section 5.4.1 sentences 2 und 5 of the
Code)
The Supervisory Board has resolved not to specify a
general limitation regarding the duration of membership
in the Supervisory Board. A general limitation applying to
all members does not take into account individual factors
that may justify a longer-lasting membership of individual
members in the Supervisory Board.
5. Disclosure in election recommendations of relations of
candidates for the Supervisory Board with the company,
its corporate bodies and with shareholders holding a
material interest in the company (Section 5.4.1 sentence
8 of the Code)
Shareholders' Meeting, shareholders are able to ask
questions with respect to the candidates. The Superviso-
ry Board is of the opinion that this constitutes a solid and
sufficient basis of information for the shareholders’ as-
sessment of the recommendations regarding Supervisory
Board candidates.
6. Individualized disclosure of the compensation of the
members of the Supervisory Board (Section 5.4.6 sen-
tences 5 and 6 of the Code)
The compensation granted to the members of the Su-
pervisory Board as well as the payments made by the
Company to members of the Supervisory Board for
personally provided services are not disclosed in the
notes or the management report in an individualized
manner (Section 5.4.6 sentences 5 and 6 of the Code).
The information is not individualized because competi-
tors of Axel Springer SE do not publish the individual
compensation either. Furthermore, Axel Springer SE’s
articles of association do not specify themselves the
distribution of the Supervisory Board’s compensation
among its members, but allocates this task explicitly to
the Supervisory Board; the individualized disclosure of
the compensation would undermine this allocation of
responsibilities. In addition the Shareholders’ Meeting on
April 16, 2014 resolved that the individual compensation
of the members of the Executive Board is not disclosed
in the Company's annual financial and annual consoli-
dated financial statements for the financial years 2014
through 2018 (included). Therefore the Company will not
disclose the individual compensation of the members of
the Supervisory Board either.
II. Past-related Section
Period between the last declaration of conformity on
November 10, 2014, and the publication of the new
version of the Code on June 12, 2015:
In its election recommendations to the Shareholders'
Meeting, the Supervisory Board will provide all statutory
information with respect to the members of the Supervi-
sory Board and, where possible, will introduce the candi-
dates in the Shareholders' Meeting. Further, during the
During the period between the last declaration of con-
formity on November 10, 2014, and the publication of
the new version of the Code on June 12, 2015, the
Company has fulfilled the Code in the version of June 24,
2014, as published by the German Federal Ministry of
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Justice and for Consumer Protection in the official an-
nouncements section of the Federal Gazette of Septem-
ber 30, 2014 subject to the deviations set out and rea-
soned above under I. 2, I. 3., I.5 and I. 6.
agement principles, which are built on company values,
should give management a concrete framework that
creates transparency regarding the requirements and
expectations of management roles.
Period since publication of the new version of the Code
on June 12, 2015:
The Company has fulfilled the Code in the version of May
5, 2015, as published by the German Federal Ministry of
Justice and for Consumer Protection in the official an-
nouncements section of the Federal Gazette of June 12,
2015, in the period since the publication of the new
version of the Code subject to the deviations set out and
reasoned above under I. 2, I. 3. , I.4., I.5.and I. 6.
Berlin, November 9, 2015
Axel Springer SE
The Supervisory Board
The Executive Board"
The Declaration of Conformity from November 9, 2015
can, just like previous versions, also be seen via the link
www.axelspringer.com/declarationofconformity.
Important management practices
Axel Springer is the only independent digital publisher
that has provided itself with a corporate constitution. This
is anchored in Article 3 (“Principles of Corporate Govern-
ance”) of the company’s Articles of Incorporation and is
thus a guiding principle for all employees. The five princi-
ples formulated therein form the basis for the company’s
journalistic practices. They express fundamental convic-
tions of corporate social policy, but do not dictate per-
sonal opinions.
Axel Springer has also defined corporate values as the
foundation of its corporate culture, to guide the work of
every employee. They are: creativity as the crucial pre-
requisite for success in journalism and business; entre-
preneurship in the sense of being courageously inventive,
self-reliant and results-oriented, qualities that are ex-
pected of all managers and employees; integrity in all
dealings with the company, readers, customers, em-
ployees, business partners, and shareholders. The man-
In addition, Axel Springer had already introduced guide-
lines for ensuring journalistic independence back in 2003.
These guidelines substantiate and expand on the profes-
sional ethics of the press as set out by the German Press
Council in conjunction with the press associations in the
publishing principles (Press Code), and which Axel
Springer voluntarily commits with regard to printed com-
plaints (see Section 16 of the Press Code). Axel Springer
specifically delineates the boundaries between advertis-
ing and editorial copy, and between the editors’ and
reporters’ private and business interests. It also pre-
cludes actions in pursuit of personal advantages and
defines the company’s position with respect to the
treatment of news sources. The guidelines thus repre-
sent the framework for independent and critical journal-
ism in the editorial departments of all media belonging to
the Group. The editors-in-chief are responsible for ob-
serving and implementing the guidelines in the compa-
ny’s day-to-day activities.
Furthermore, Axel Springer has developed a catalog of
social standards applicable to all the company’s activities.
Known as the International Social Policy, it states the
company’s positions on matters of human rights, adher-
ence to the rule of law, the protection of children and
young people, the treatment of employees, equal oppor-
tunities, health and safety, and the compatibility of work
and family, and other matters.
The company has further issued an Environmental
Guideline comprising four points, which serves as a
practical guide to the many environmental protection
measures conducted at Axel Springer; the company also
publishes a sustainability report which follows the criteria
catalog of the “Global Reporting Initiative“ (GRI), includ-
ing the “Media Sector Supplement“ (GRI+).
The management principles and guidelines of Axel
Springer can be found at www.axelspringer.com/-
corporateprinciples.
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In addition, Axel Springer maintains a Corporate Govern-
ance, Risk & Compliance department. This supports
subsidiaries and central divisions in responsibly handling
risks via approaches and requirements, amongst other
things, for a comprehensive risk management system,
an internal control system, and a compliance manage-
ment system. The division operates, amongst others, risk
management, the internal control system and the com-
pliance management system. As described in the report
on risks and opportunities (see page 44 et seqq.), risk
management and the internal control system seek to
identify, analyze and assess, manage and report on risks
at Axel Springer and to systematically monitor the
measures taken to minimize risks. At Axel Springer,
compliance means the fulfillment of all laws, regulations,
and guidelines, as well as the commitments undertaken
voluntarily. Based on the foregoing, the goal of compli-
ance management is to institute structures and process-
es to ensure that all directors and employees, and espe-
cially senior executives, conduct themselves in
accordance with applicable laws and regulations. Anoth-
er goal of compliance management is to prevent harm to
the company’s reputation and financial condition that
could result from violations of laws and regulations.
As a further step for reinforcing good corporate govern-
ance and establishing a sensible compliance manage-
ment system, Axel Springer published a Code of Con-
duct during the 2011 financial year. This summarizes
existing corporate principles and values as well as es-
sential Axel Springer regulations and guidelines, and also
specifies ethical, moral, and legal requirements which
should be adhered to by all employees. The Code of
Conduct can be found at www.axelspringer.de/coc_en.
Procedures of the Executive Board and Supervisory
Board, and composition of the committees of the
Supervisory Board
Cooperation between the Executive Board and
Supervisory Board
As has been the case at Axel Springer AG, the manage-
ment and supervision of the company, which has been
organized in the legal form of a European company
(Societas Europaea SE) since December 2013, are af-
fected by means of a dual board system. The Executive
Board manages the company under its own responsibil-
ity. The Supervisory Board appoints the members of the
Executive Board, and monitors and advises the latter in
the conduct of the business. The two boards work
closely together in an atmosphere of trust and confi-
dence to sustainably enhance the company’s value. The
two boards are strictly separated in terms of personnel
and their areas of authority.
Procedures of the Executive Board
In its executive function, the Executive Board is obligated
to pursue the interests of the company and dedicated to
sustainable company development. It develops the stra-
tegic orientation of the company and is responsible for its
implementation in coordination with the Supervisory
Board. The Executive Board manages the company’s
affairs in compliance with the relevant laws, the Articles
of Incorporation, and its rules of procedure.
It provides regular, timely, and comprehensive infor-
mation to the Supervisory Board on all relevant matters
of strategy, planning, business development, risk man-
agement including the risk situation, and the internal
control system and compliance management system. In
accordance with the internal rules of procedure adopted
by the Supervisory Board, important decisions of the
Executive Board or specific cases require the approval of
the Supervisory Board. Such decisions include, above all,
the creation or discontinuation of business divisions, the
acquisition or sale of significant equity investments, and
the adoption of the company’s annual business and
financial plan.
The members of the Executive Board are jointly respon-
sible for the management, work together collegially, and
keep each other informed of important measures and
business transactions in their business divisions. Not-
withstanding the general responsibility of all Executive
Board members, each member of the Executive Board
manages the business division assigned to him, under
his own responsibility, with the exception of those deci-
sions that are incumbent on the full Executive Board.
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The Executive Board meets regularly in the form of Ex-
ecutive Board meetings, which are convened and
chaired by the Executive Board Chairman, as a general
rule. Furthermore, every Executive Board member and
the Chairman of the Supervisory Board are entitled to
convene a meeting.
The Executive Board aims to ensure diversity with regard
to the staffing of leading positions within the company;
the Management Board has set targets for the propor-
tion of women holding management positions in the two
levels beneath the Executive Board; for more information
see page 73.
As a general rule, the full Executive Board adopts resolu-
tions by a simple majority of the votes cast; in the case
of resolutions adopted by a simple majority, the Chair-
man casts the deciding vote. A resolution adopted in
spite of being opposed by the Chairman and Chief Ex-
ecutive Officer is deemed to be invalid, also subject to
the limits of the applicable laws.
The internal rules of procedure adopted by the Supervi-
sory Board for the Executive Board, which were revised
in February 2015, provide more precise rules, including
the following:
the obligation to observe and comply with the corpo-
rate constitution and to anchor it throughout the Group,
the executive organization chart and the decisions to
be made by the full Executive Board,
the duties of the Chairman of the Executive Board,
transactions that require the approval of the Supervi-
sory Board,
rules concerning the regular, timely, and comprehen-
sive provision of information to the Supervisory Board,
rules concerning meetings and the adoption of resolu-
tions,
obligation to disclose conflicts of interest.
The Executive Board of the company currently consists
of four members:
Dr. Mathias Döpfner, Chairman and Chief Executive
Officer
Jan Bayer, President Paid Models
Dr. Julian Deutz, Chief Financial Officer
Dr. Andreas Wiele, President Marketing and Classified
Ad Models
Procedures of the Supervisory Board
As per the company’s Articles of Incorporation, the Su-
pervisory Board of Axel Springer SE is composed of nine
members, who are elected by the annual shareholders’
meeting. The regular 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 Executive Board and monitors the work of the Ex-
ecutive Board. It holds at least four meetings a year. In
case of necessity, it meets without the Executive Board
in attendance. Meetings may be held and resolutions
adopted also by way of written correspondence, tele-
phone calls, faxes, or electronic media. As a general rule,
the Supervisory Board adopts resolutions by a simple
majority of the members voting on the resolution; in case
of a tie, the Chairman casts the deciding vote. The Su-
pervisory Board deliberates on the company’s business
developments, planning, strategy, and significant capital
expenditures at regular intervals. The Supervisory Board
adopts the separate financial statements of Axel Spring-
er SE and approves the consolidated financial state-
ments of the Group. It regularly assesses the efficiency of
its work by means of a questionnaire. Please refer to the
report of the Supervisory Board (see page 82) for addi-
tional information on the specific activities of the Supervi-
sory Board in financial year 2015.
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The internal rules of procedure of the Supervisory Board
comply with the requirements of the German Corporate
Governance Code and contain rules covering the follow-
ing topics, among others:
Election and duties of the Chairman and Vice Chair-
man of the Supervisory Board
Calling of meetings
Adoption of resolutions at meetings or by voting by
way of written correspondence, telephone calls, fax,
or electronic media
Supervisory Board committees, including their com-
position, organization, and duties
Obligation to disclose conflicts of interest
Since the end of the annual shareholders' meeting,
which took place on April 16, 2014, the Supervisory
Board consists of nine members. The members of the
Supervisory Board are:
Dr. Giuseppe Vita, Chairman
Dr. h. c. Friede Springer, Vice Chairwoman
Oliver Heine
Rudolf Knepper
Lothar Lanz
Dr. Nicola Leibinger-Kammüller
Prof. Dr. Wolf Lepenies
Prof. Dr.-Ing. Wolfgang Reitzle
Martin Varsavsky
The term of office of all current Supervisory Board mem-
bers ends at the end of the annual shareholders' meeting
in 2019.
72
The requirements for expert knowledge and independ-
ence as defined by Section 100 (5) AktG (financial expert)
are satisfied amongst others by Dr. Giuseppe Vita,
Chairman of the Supervisory Board, and Lothar Lanz,
Chairman of the Audit Committee.
Composition and procedures of committees
The Executive Board has not formed committees.
In accordance with its internal rules of procedure, the
Supervisory Board has formed four committees to sup-
port the work of the full board: the Executive Committee,
the Personnel Committee, the Nominating Committee,
and the Audit Committee. In those matters stipulated in
the internal rules of procedure of the Supervisory Board,
the committees prepare the resolutions to be adopted
and other matters to be addressed by the full board.
Within the limits of applicable laws, the committees also
adopt resolutions in lieu of the full board in those matters
stipulated in the internal rules of procedure of the Super-
visory Board. The internal rules of procedure of the Su-
pervisory Board stipulate the procedures for meetings
and resolutions adopted by the committees and define
their areas of responsibility.
Please refer to the Report of the Supervisory Board (see
page 84) for information on the areas of responsibility
and composition of the committees.
The Audit Committee of the Supervisory Board is chaired
by Lothar Lanz, whose selection deviates from the rec-
ommendation stated in Section 5.3.2 sentence 3 sub-
para 2 GCGC (for more information regarding this see
the deviation declared in the Declaration of Conformity of
November 9, 2015, see page 67); the Supervisory Board
is convinced that Mr Lanz’ long-standing experience as
CFO, his specialist knowledge and his personality make
him an exceptionally suitable Chairman of the Audit
Committee. He satisfies the requirements of expert
knowledge and independence within the meaning of
Article 9 para. 1 letter c) ii) SE-VO in conjunction with
Section 107 (4), 100 (5) AktG (financial expert), and the
requirements of the recommendations in Section 5.3.2
paras 2 and 3 GCGC.
Annual Report 2015
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Combined Management Report
Corporate Governance report
Provisions to promote the participation of women in
management positions according to Section 76 (4)
and Section 111 (5) of the German Stock Corpora-
tion Act ("AktG")
Since 2010, Axel Springer has pursued a Group-wide
strategy to promote diversity; reference is made to page
36 of the Annual Report with regard to the company’s
personnel policies designed to assure equal opportunity
and diversity as well as the Group-wide targets to increase
the proportion of women at all management levels, as a
company-wide average.
In addition to this voluntary Group-wide commitment, the
law for the equal participation of men and women in man-
agement positions in the private and public sector (Gesetz
für die gleichberechtigte Teilhabe von Frauen und Män-
nern an Führungspositionen in der Privatwirtschaft und im
öffentlichen Dienst), introduced in May 2015 in Germany,
also obliges certain companies, including Axel Springer SE,
to set targets for the proportion of women acting on the
Supervisory Board, Executive Board and the two man-
agement levels beneath the Executive Board, and specify
when the respective proportion of women should be
achieved. The targets and deadlines for implementation
had to be decided by September 30, 2015, whereby the
deadline for implementation for the initial definition should
not be any later than June 30, 2017. However, targets for
the Supervisory Board itself do not need to be set if the
statutory minimum proportion of 30 % women and 30 %
men applies within the company for the appointment of
new Supervisory Board members with effect from January
1, 2016 (“proportion of women”). This is not the case at
Axel Springer SE, which is why it is necessary for targets
to be defined for the Supervisory Board itself as well.
Accordingly, the Supervisory Board of Axel Springer SE
decided on September 2, 2015 to set a target of 22.2 %
with regard to the proportion of women on the Superviso-
ry Board of Axel Springer SE, and a target of 0 % for the
proportion of women on the Executive Board of Axel
Springer SE, each with a deadline for implementation of
no later than June 30, 2017. This determines the current
status, for more information regarding the reasons behind
this see page 74 (left-hand column) and 74 (right-hand
column) of the Annual Report.
The Executive Board of Axel Springer SE passed a resolu-
tion on May 11, 2015, to set a target of 25 % and a dead-
line for implementation of no later than June 30, 2017, for
the first and second management levels of the company
beneath the Executive Board; at the time the targets were
set, the proportion of women in the first management level
beneath the Executive Board was 22.6 %, and 19.5 % in
the second management level beneath the Executive
Board at Axel Springer SE.
Of course, these targets do not preclude any additional
increase within the first deadline for implementation in the
proportion of women on the Supervisory Board and Exec-
utive Board as well as at the first two management levels
beneath the Executive Board at Axel Springer SE.
Further information on corporate
governance
Goals for the composition of the Supervisory Board
The Supervisory Board of Axel Springer SE has decided
on the following objectives for its composition with re-
spect to Section 5.4.1 of GCGC:
The Supervisory Board of Axel Springer SE should be
composed in such a way that its members generally
possess all knowledge, abilities, and professional ex-
perience necessary to properly perform the duties of
the Supervisory Board.
With due consideration given to the company’s busi-
ness object and purpose set forth in the Articles of In-
corporation, the size of the company, and the relative
importance of its international activities, the Supervi-
sory Board will also strive, as a goal for the upcoming
regular elections, to bring about a composition of its
members that is appropriate in view of the following
considerations, in particular:
At least two seats on the Supervisory Board should
be held by persons who fulfill the criterion of interna-
tionality to a particular degree (for example, by reason
of relevant experience in international business).
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Supervisory Board members should not hold any
position on a board or perform any consulting work
for important competitors of the company.
The foregoing principles have already been completely
implemented with the current composition of the Super-
visory Board of Axel Springer SE.
The Supervisory Board should have an adequate
proportion of women. Currently, two of the nine
members (22.2 %) are women; the Supervisory Board
considers this adequate in any event. Accordingly,
and due to the fact that there are no scheduled Su-
pervisory Board elections within the maximum permit-
ted initial deadline for implementation passed by reso-
lution and stipulated by law, the target for the
proportion of women on the Supervisory Board of Ax-
el Springer SE was set at 22.2 %.
In making nominations, due consideration should be
given to the general rule that Supervisory Board
members should not be older than 72 years; the Su-
pervisory Board can approve exceptions to this policy.
Furthermore, the Supervisory Board should observe
the principle that as few members as possible should
be subject to a potential conflict of interest, as in con-
nection with an advisory role or board seat with signif-
icant customers, suppliers, creditors, or other signifi-
cant business partners of Axel Springer. Furthermore,
the Supervisory Board should give due consideration
to the principle that its composition should meet the
criterion of diversity.
With respect to its composition, the Supervisory
Board adopted the goal that at least two of its mem-
bers will be independent according to the definition of
the GCGC.
However, the Supervisory Board decided not to define a
regulatory limit with regard to the length of membership
of the Supervisory Board, despite the recommendation
stated in Section 5.4.1 sentences 2 and 5 of the GCGC.
A fixed regulatory limit fails to take into account individual
factors that may justify an extended length of member-
ship for individual Supervisory Board members (for more
information regarding this see the deviation declared in
the Declaration of Conformity of November 9, 2015, see
page 67).
With regard to its proposals on the election of new Su-
pervisory Board members, the Supervisory Board shall
make sure that the respective candidates are able to put
aside the expected amount of time.
Goals for the composition of the Executive Board
The Supervisory Board has decided on the following
objectives for the composition of the Executive Board of
Axel Springer SE with respect to Section 5.1.2 of GCGC:
In making decisions concerning the composition of
the Executive Board, the Supervisory Board should
give due consideration to the principle of diversity and
should strive in particular to give appropriate consid-
eration to women. With regard to the requirement
stipulated by law to define a target for the proportion
of women on the Executive Board, the Supervisory
Board decided to set a target of 0 % with a deadline
for implementation of no later than June 30, 2017,
see page 73. At the time the target was set, the Su-
pervisory Board had not planned to make any chang-
es to the staffing of the Executive Board, as was also
the case as at the time of reporting; it believes that
the Executive Board is well-staffed. However, an in-
crease in the proportion of women on the Executive
Board cannot of course be ruled out within the dead-
line for implementation, should there be any need to
make an appointment to the Executive Board.
The Supervisory Board should work together with the
Executive Board to assure long-term succession
planning.
At the time of being (re-)appointed to the Executive
Board, no member should be older than 62 years, as
a general rule; the Supervisory Board can approve
exceptions to this rule.
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Goals concerning the staffing of key functions
In view of the recommendation set out in Section 4.1.5
of the GCGC, reference is made to the description of
personnel policies designed to assure equal opportunity
and diversity on page 36 of the present Annual Report,
and to the stipulated targets in both of the management
levels of the company beneath the Executive Board on
page 73 of the present Annual Report.
Shareholders and annual shareholders’ meeting
The annual shareholders' meeting is the central organ via
which Axel Springer SE shareholders can exercise their
rights and their voting rights. Every share confers the right
to cast one vote in the annual shareholders’ meeting.
Those shareholders who are registered in the share regis-
ter and have registered for the meeting in time are entitled
to vote. The Chairman of the Supervisory Board generally
chairs the shareholders’ meeting. To make it easier for
shareholders to exercise their prerogatives at the annual
shareholders’ meeting, their votes can be cast by author-
ized proxies. Axel Springer SE also designates a voting
proxy whom shareholders can elect to execute their
voting rights according to their instructions. All required
reports and documents are made available to the share-
holders in advance, also on the company’s Internet page.
The annual shareholders’ meeting resolves specifically on
the utilization of the distributable profit, the ratification of
the actions of the Executive Board and Supervisory Board,
the election of the Supervisory Board, the election of the
independent auditor, and other matters legally assigned
to them, such as corporate actions and other amend-
ments to the Articles of Incorporation. The resolutions of
the annual shareholders’ meeting require a simple majori-
ty of the votes cast, unless another majority is prescribed
by law or by the company’s Articles of Incorporation. The
Articles of Incorporation can be inspected on the compa-
ny’s website at
www.axelspringer.com/articlesofassociation.
Conflicts of interest
The members of the Executive Board and Supervisory
Board are bound to promote the interests of the company.
No member of either board may, through their decisions,
pursue personal interests or take advantage of business
opportunities that should be the province of the company.
Executive Board members may not demand or accept
gifts or other benefits from, or grant unjustified benefits to,
third parties in connection with their activities, either for
their own benefit or for that of others. Sideline activities of
the Executive Board require the consent of the Superviso-
ry Board. Executive Board members are subject to a
comprehensive anti-competition clause during the period
of their activity for Axel Springer. Every Executive Board
member must inform the Supervisory Board of any con-
flict of interest without delay. No conflicts of interest arose
within the Executive Board in the financial year.
Also, every member of the Supervisory Board must
inform the Supervisory Board immediately of any con-
flicts of interest that may arise. In the annual sharehold-
ers' meeting, the Supervisory Board reports on all con-
flicts of interest and how to treat them. For any conflicts
of interest which arose during the financial year, please
see the Report of the Supervisory Board on page 84).
Memberships on other supervisory bodies
A summary of the seats held by the Executive Board and
Supervisory Board members of Axel Springer SE on
other legally prescribed supervisory boards or compara-
ble boards in Germany and abroad can be found on
page 169.
Transparency
Axel Springer is committed to always providing compre-
hensive and consistent information in a timely and simul-
taneous manner on the significant events and develop-
ments relevant to an evaluation of the company’s
present and future business performance to all capital
market participants. Reporting on the business situation
and Group results is presented in its annual report, at its
annual financial statements press conference, and in its
semi-annual financial report and quarterly financial re-
ports. For this purpose, the company also uses Internet
communication channelswhenever possible. Axel
Springer also regularly participates in conferences and
roadshows in key international financial centers; addi-
tional information on this subject can be found on page 8
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Combined Management Report
Corporate Governance report
of the present Annual Report. 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.
In order to ensure equal treatment of all capital market
participants, Axel Springer also publishes information
relevant to the capital markets simultaneously in German
and English on the company’s website. Financial report-
ing dates are published in the financial calendar with
sufficient advance notice. Immediately upon receiving the
corresponding notices, the company publishes changes
in the composition of the shareholder structure that are
subject to the reporting obligation according to Sec-
tion 26 of the German Securities Trading Act (Wertpa-
pierhandelsgesetz, WpHG), and on the purchase and
sale of shares by persons who exercise management
duties at Axel Springer (directors’ dealings), in accord-
ance with Section 15a WpHG.
Shareholdings
The Executive Board members in office at the reporting
date directly or indirectly held 3,148,667 shares of Axel
Springer SE at the reporting date of December 31, 2015.
Of that number, 3,024,495 shares were held directly or
indirectly by the Chairman of the Executive Board,
Dr. Mathias Döpfner.
At the reporting date, the Supervisory Board members
directly or indirectly held a total of 56,577,730 shares of
Axel Springer SE. Dr. h. c. Friede Springer held
51,000,030 shares indirectly via Friede Springer GmbH &
Co. KG and Axel Springer Gesellschaft für Publizistik
GmbH & Co, and 5,502,450 shares directly.
Preparation and audit 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. The consolidated
financial statements also contain the disclosures pre-
scribed by Section 315a (1) HGB.
The consolidated financial statements are prepared by
the Executive Board of Axel Springer SE and audited by
the independent auditor. Axel Springer publishes the
consolidated financial statements within 90 days and the
quarterly financial reports within 45 days of the respec-
tive period ending dates.
The notes to the consolidated financial statements also
contain information on the company’s relationships with
shareholders who are to be classified as related parties
according to the definitions of the applicable accounting
regulations.
In accordance with the German Corporate Governance
Code, it is agreed with the independent auditor in each
financial year that the latter will inform the Chairman of
the Supervisory Board or the Audit Committee without
delay of any circumstances arising during the course of
the audit that would constitute grounds for disqualifica-
tion or partiality. It is also agreed that the independent
auditor will immediately report any material issues, mat-
ters, and events arising during the course of the audit
that fall within the purview of the Supervisory Board. It is
further agreed that the independent auditor will inform
the Supervisory Board or make an observation in the
audit report if the independent auditor were to discover,
during the course of the audit, any facts that contradict
the Declaration of Conformity by the Executive Board
and Supervisory Board according to Section 161 AktG.
Ongoing actions for nullification
In submitting claims on May 21, 2009 and May 21, 2010,
the shareholder Dr. Oliver Krauß contested various reso-
lutions passed by the company’s annual shareholders’
meetings in 2009 and 2010. As a result of an out-of-
court settlement between the company and Dr. Oliver
Krauß, this meant that Dr. Oliver Krauß canceled these
actions for nullification subject to the approval of the
company. The company reported the end of proceed-
ings in the Federal Gazette on November 13, 2015 in
accordance with Sections 248a, 149 (2) AktG. There are
no other pending actions for nullification.
76
Annual Report 2015
Axel Springer SE
Combined Management Report
Corporate Governance report
Compensation report
Axel Springer’s compensation policy follows the principle
of granting compensation to the Executive Board and
Supervisory Board that is based on their performance in
the interest of sustainable corporate development. This
compensation consists of fixed and variable perfor-
mance-dependent components.
Executive Board
In accordance with the requirements of the German Stock
Corporation Act and the recommendations of GCGC, the
compensation of the Executive Board members consists
of fixed and variable components. The variable compensa-
tion is composed of a cash component paid in the form of
an annual bonus and a long-term, stock-based compo-
nent. All components of compensation are appropriate,
both individually and as a whole. The Supervisory Board
has considered at length the appropriateness and ade-
quacy of the Executive Board compensation by taking into
account a number of criteria, including in particular Section
87 of the German Stock Corporation Act ("AktG") and
Section 4.2.2 sentences 4 and 5 of the GCGC, such as
information about the tasks of an individual Executive
Board member, his personal performance and the eco-
nomic position, success and future prospects of Axel
Springer. Due consideration is also given to the industry
environment. However, the requirement for a continuous
separate examination of the comparability of Executive
Board compensation with the compensation of senior
management and the workforce as a whole is waived, see
corresponding declaration regarding exception to the
recommendation made in Section 4.2.2 sentence 6 of the
GCGC in the Declaration of Conformity dated November 9,
2015, page 67 of the Annual Report.
The Supervisory Board did not consult with outside
compensation experts during the financial year.
The fixed compensation corresponds to the annual
fixed salary; in addition, the Executive Board members
receive a company car or company car allowance, the
assumption of premiums for insurance against the risk of
invalidity and death and security expenses as fringe
benefits. The annual fixed salary is established for the
entire term of an employment agreement and is dis-
bursed in 12 monthly installments. It is set on the basis of
the duties of the individual Executive Board member, the
current economic situation, the profit, and the future
prospects of the Group, among other considerations.
The variable compensation is in the form of an annual
bonus as a cash component, and depends on individual
performance with regards to individual objectives (relat-
ing to the quantitative divisional objectives and qualitative
individual objectives, amongst others, based on the
strategy of Axel Springer SE) as well as Group objectives;
it is limited to double the sum payable for 100 %
achievement of objectives. The Group objective during
the 2015 financial year and in the prior year was the
Group EBITDA figure (2013: including the EBITDA in the
former Digital Media segment). Individual objectives for
measuring performance of individuals and Group objec-
tives are decided upon by the Supervisory Board. Part of
the variable cash component is based on achievement of
Group objectives established for an assessment period
of three years. Achievement of objectives is initially es-
tablished by the Supervisory Board members and chair-
man with the relevant Executive Board member and then
reviewed and finalized by the Supervisory Board.
In addition, there is a long-term variable compensa-
tion component in the form of virtual stock option plans,
the parameters of which are shown in the following:
Executive Board Program
Grant date
Term in years
Vesting period in years
2012
2014 I
2014 II
01/01/2012 01/01/2014 09/01/2014
6
4
6
4
6
4
Stock options granted
450,000
205,313
675,000
Underlying (€)
Maximum payment (€)
Value at grant date (€)
Total value at grant date
(€ millions)
30.53
61.06
5.26
44.06
88.12
6,.69
44.56
89.12
6.26
2.4
1.4
4.2
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Annual Report 2015
Axel Springer SE
Combined Management Report
Corporate Governance report
If the Executive Board service agreement or the ap-
pointment to the Executive Board exists for at least the
end of the four year waiting period, then all virtual stock
options may become vested to the member of the Exec-
utive Board. If the working relationship or the appoint-
ment of the authorized member of the Executive Board
finishes before the end of the waiting period, but is at
least one year after the grant date, then the stock op-
tions become vested pro rata temporis relating to the
waiting period.
A further condition for vesting to take place is that either
the volume-weighted average price of the Axel Springer
share is at least 30 % over the base value or that the
percentage increase of this average price exceeds that
of the base value of the development of the DAX over a
period of 90 calendar days within a time period of a year
before the end of the waiting period.
Exercising stock options is only possible if the volume-
weighted average price of the Axel Springer share 90
calendar days before exercising such options is at least
30 % over the base value and that the percentage in-
crease exceeds that of the DAX index. Each option
grants a payment claim in the amount of the growth in
value of the Axel Springer share, restricted to a maxi-
mum of 200 % of the base value, which corresponds to
the difference between the volume-weighted average
price during the last 90 calendar days prior to exercise
and the base value.
Executive Board members are obligated to hold one Axel
Springer share for every ten stock options as a personal
investment. Disposing of these shares prior to exercising
the options would result in the stock options being for-
feited at the same rate.
With regards to the Executive Board Programs that are
granted, see the information in the notes to the consoli-
dated financial statements under Section (13).
case of premature departure the Executive Board mem-
ber has – after the end of five years since the pension
commitment or since earlier entry into the company – a
vested claim to a pension payment proportional to the
length of his employment with the company. Payments
are also made in case of a complete reduction in earning
capacity.
Some Executive Board members have the right to termi-
nate their employment contracts in the event of a change
in control. In such a case, they will have the right to
receive payment of their base salary for the most recently
negotiated remaining contractual term (some of the
eligible Executive Board members will have the right to
receive payment of an amount equal to at least one
year’s base salary) and/or a lump sum amounting to the
total remuneration for the duration of the original residual
term; the amount of the aforementioned payments is
typically limited. Furthermore, the company will pay the
pro-rated percentage of the success-based compensa-
tion for the period of time served in the year of resigna-
tion. The employment contracts of the members of the
Executive Board do not provide for any other compensa-
tion if the employment relationship is terminated as a
result of a change in control.
In the 2015 financial year the total compensation paid
to the Executive Board was € 18.9 million (PY: € 17.8
million plus a long-term stock-based compensation
component of € 5.6 million for virtual stock option plans
2014 I and 2014 II). The fixed components totaled € 8.7
million (PY: € 8.9 million); this figure also includes com-
ponents for fringe benefits (company car or company car
allowance, the assumption of premiums for insurance
against the risk of invalidity and death and security ex-
penses). The variable cash component came to a total of
€ 10.2 million (PY: € 8.9 million). According to this, the
fixed compensation including fringe benefits in the finan-
cial year amounts to a proportion of 46 % (PY: 38 %) of
total compensation (including long-term stock-based
compensation components).
Executive Board members have received contractually-
agreed pension provisions. Payment of pension applies
when reaching the age of 62, provided that the Executive
Board member is no longer at their post at this point. In
Guaranteed pension payments to members of the Exec-
utive Board resulted in a personnel expense of € 0.8
million in financial year 2015 (PY: € 0.5 million). The cash
78
Annual Report 2015
Axel Springer SE
Combined Management Report
Corporate Governance report
For the financial year 2015, the Supervisory Board will
receive total compensation of € 3.0 million (PY: € 3.0
million). In addition, the company reimburses all mem-
bers of the Supervisory Board for their expenses and for
the value-added tax payable on their compensation and
on the reimbursement of their expenses. 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 salary of € 0.1 mil-
lion for his services as an author. (PY: € 0.1 million).
Contrary to Section 5.4.6 sentences 5 and 6 of the Ger-
man Corporate Governance Code, the compensation
paid to members of the Supervisory Board, as well as
the compensation paid by the company to them for
services rendered personally, are not presented in the
Corporate Governance Report, since Axel Springer SE’s
competitors do not disclose such information either.
Furthermore, the Articles of Incorporation of Axel Spring-
er SE do not themselves govern the individualized distri-
bution of compensation between Supervisory Board
members, but rather they expressly assign them to the
Supervisory Board; the disclosure in an individualized
manner of the Supervisory Board compensation would
circumvent this allocation of responsibilities to the annual
shareholders’ meeting. The annual shareholders’ meet-
ing of the company also passed a resolution on April 16,
2014, stopping the disclosure of the individual compen-
sation of the members of the Executive Board in the
Company's annual financial and annual consolidated
financial statements for the financial years 2014 through
2018 (included), meaning therefore that the compensa-
tion of Executive Board members is not published in
individualized form either.
value of the guaranteed pension payments in pension
provisions totaled € 11.4 million (PY: € 11.4 million).
Credits or advance payments were not granted to mem-
bers of the Executive Board in the 2015 financial year. In
the case of guaranteed pension payments to Executive
Board members, which became effective with the rele-
vant recommendation in Section 4.2.3 sentence 10
GCGC on June 10, 2013, the Supervisory Board estab-
lished the pension level desired in compliance with the
previously stated Code recommendation and considered
the annual and long-term expense for the company
derived from this.
Axel Springer SE does not disclose the total compensa-
tion of individual Executive Board members by name,
given that Sections 314 (2) and 286 (5) HGB expressly
place the disclosure of Executive Board compensation
by name under the reservation of a differing resolution of
the annual shareholders’ meeting with a qualified majority
of the share capital represented upon the adoption of the
resolution. The annual shareholders’ meeting of Axel
Springer SE held on April 16, 2014, adopted such a
resolution with the requisite majority.
Supervisory Board
The compensation of the Supervisory Board is set by the
annual shareholders’ meeting.
The compensation of the Supervisory Board of Axel
Springer SE is regulated by Article 16 of the Articles of
Incorporation of Axel Springer SE. According to this, the
Supervisory Board of Axel Springer SE receives fixed
compensation of € 3.0 million annually. The Supervisory
Board decides how the aforementioned amount is dis-
tributed among its members, with appropriate considera-
tion given to their activities as chairman and in the com-
mittees. If the member does not serve on the
Supervisory Board or exercise a higher-paying function
of a Supervisory Board member for the full year, such
member will receive a pro-rated share of the full-year
compensation. Only full months of activity are taken into
account for this purpose. The compensation is payable
after the close of the given financial year.
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Annual Report 2015
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Combined Management Report
Corporate Governance report
Exercising stock options is only possible if the volume-
weighted average price of the Axel Springer share during
the three calendar months before exercising such op-
tions is at least 30 % over the base value and that the
percentage increase exceeds that of the DAX index.
Each option grants a payment claim in the amount of the
growth in value of the Axel Springer share, restricted to a
maximum of 200 % of the base value, which corre-
sponds to the difference between the volume-weighted
average price during the last three calendar months prior
to exercise and the base value.
Beneficiaries are obligated to hold one Axel Springer
share for every ten stock options as a personal invest-
ment. Disposing of these shares prior to exercising the
options would result in the stock options being forfeited
at the same rate.
The Senior Executive Program 2011 I was completed
during the financial year 2014 as the stock options were
exercised or forfeited. With regards to the executive
programs that are granted, see the information in the
notes to the consolidated financial statements under
Section (13).
Share-based compensation of senior executives
Axel Springer has issued virtual stock option plans for
selected senior executives, the main parameters of
which are shown in the following:
Senior Executive Program
Grant date
Term in years
Vesting period in years
2011 I
2011 II
2014
10/01/2011 10/01/2011 03/01/2014
4
2
6
4
5
3
Stock options granted
472,500
472,500
60,000
Underlying (€)
Maximum payment (€)
30.00
60.00
35.00
70.00
Value at grant date (€)
2.74
2.31
46.80
93.60
8.14
Total value at grant date
(€ millions)
1.3
1.1
0.5
Provided that the beneficiary is employed by the compa-
ny at least until the expiration of the respective vesting
period, all virtual stock options granted to the relevant
senior executives may become vested. If the authorized
senior executive is not employed by the company before
the end of the vesting period, but is at least one year
after the grant date, the stock options are vested up to
one half (Senior Executive Programs 2011 I and 2014) or
to one quarter per elapsed year of the vesting period
(Senior Executive Program 2011 II).
A further condition for vesting to take place is that either
the volume-weighted average price of the Axel Springer
share is at least 30 % over the base value or that the
percentage increase of this average price exceeds that
of the base value of the development of the DAX over a
period of three calendar months within a time period of a
year before the end of the waiting period.
80
Report of the
Supervisory Board
Dr. Giuseppe Vita
Chairman
Dr. h. c. Friede Springer
Vice Chairwoman
Oliver Heine
Attorney at law and partner in the
law firm Heine & Partner
Rudolf Knepper
Entrepreneur
Lothar Lanz
Member of various Supervisory Boards
Dr. Nicola Leibinger-Kammüller
President and Chairwoman of the Executive Board
of TRUMPF GmbH + Co. KG
Prof. Dr. Wolf Lepenies
University Professor (emer.) FU Berlin;
Permanent Fellow (emer.) at Wissenschaftskolleg
zu Berlin
Prof. Dr.-Ing. Wolfgang Reitzle
Entrepreneur
Martin Varsavsky
CEO, Fon Wireless Limited
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Annual Report 2015
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Report of the Supervisory Board
In financial year 2015, the Supervisory Board performed
all the duties incumbent upon it by virtue of applicable
laws, the company’s Articles of Incorporation, and inter-
nal rules of procedure. It worked closely and trustfully
with the Executive Board in an advisory role and super-
vised the management of the company.
By means of written and oral reports, the Executive
Board informed the Supervisory Board in detail, regularly,
and promptly about all relevant matters of strategy, plan-
ning, business performance, and the risk situation of the
company, as well as the risk management system, the
Internal Control System (ICS), and matters pertaining to
compliance. The Executive Board informed the Supervi-
sory Board of matters of particular importance between
meetings, whilst Supervisory Board members and Exec-
utive Board members frequently consulted and ex-
changed information with each other.
The Supervisory Board examined the relevant planning
documents and financial statements presented to it and
assured itself that they were correct and appropriate. It
reviewed and discussed all submitted reports and doc-
uments to an appropriate extent. It was not necessary in
financial year 2015 for the Supervisory Board to inspect
company books and documents beyond those present-
ed during the normal course of reporting by the Execu-
tive Board.
The Supervisory Board discussed with the Executive
Board all matters of crucial importance for the company,
especially the company’s business plan, business strat-
egy, major investment and disinvestment plans, and
personnel matters; the strategic orientation of the com-
pany was agreed between the Executive Board and
Supervisory Board, and the status in relation to the im-
plementation of the strategy was discussed. Furthermore,
the Supervisory Board discussed specific transactions of
importance to the company’s future development, par-
ticularly the acquisition and sale of companies and equity
stakes. It adopted resolutions on those transactions and
measures for which the participation of the Supervisory
Board is required by law, by the company’s Articles of
Incorporation, or by the Executive Board’s internal rules
of procedure. After in-depth review, the Supervisory
Board approved all matters presented to it by the Execu-
tive Board for resolution or approval.
Composition of the Supervisory Board
As per the company’s Articles of Incorporation, the Su-
pervisory Board is composed of nine members (see
page 72 of the Annual Report regarding the individual
members of the Supervisory Board). The regular term of
all current members of the Supervisory Board will end
after the end of the ordinary annual shareholders' meet-
ing in the 2019 financial year that decides as to ratifica-
tion of the Company's Boards for the 2018 financial year.
Six plenary meetings of the Supervisory Board were held
during the reporting period, three of which were held in
each calendar half-year, whereby the meeting held on
July 22, 2015, was an extraordinary meeting in the form
of a teleconference. The Supervisory Board member,
Martin Varsavsky, gave his apologies for being unable to
attend three Supervisory Board meetings during the
2015 financial year or, in other words, half of the meet-
ings held in the financial year. However, Martin Varsavsky
participated in all votes held in these meetings by way of
votes submitted in writing.
When necessary, Supervisory Board resolutions were
adopted by way of written circulation. The work of the
committees and the resolutions passed by the commit-
tees was reported in the meetings of the full board.
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Report of the Supervisory Board
Important matters addressed by the
Supervisory Board
In its meeting of February 9, 2015, the Supervisory
Board discussed and approved the financial plan for
2015 submitted by the Executive Board. The Executive
Board informed the Supervisory Board about the poten-
tial business development figures in the financial
year 2014. The transaction pipeline status was reported
on, and the catalog of approval requirements was also
adjusted in line with the internal rules of procedure for
the company’s Executive Board.
In its meeting of February 27, 2015, the Supervisory
Board devoted its attention primarily to the separate
financial statements of the parent company and the
consolidated financial statements of the Group as of
December 31, 2014 (including, in each case, the com-
bined management report and Group management
report), as well as the report on the company’s dealings
with affiliated companies (Dependency Report), along
with the respective audit reports. It concluded the Ex-
ecutive Board’s profit utilization proposal for financial
year 2014 and agreed to the Corporate Governance
Report issued jointly with the Executive Board. Further-
more, the Supervisory Board dealt with the agenda for
the 2015 annual shareholders’ meeting; this covered the
proposed resolutions for the annual shareholders' meet-
ing including the proposal to choose the independent
auditor for financial year 2015 as well as the proposed
resolution to create authorized capital and make suitable
changes to Article 5 of the company’s Articles of Incor-
poration. In addition, the Supervisory Board adopted a
resolution regarding its report for the 2014 financial year
which was submitted at the annual shareholders' meet-
ing. Furthermore, the Supervisory Board agreed to the
2016 – 2019 medium-term plan submitted by the Execu-
tive Board; it also agreed to the share ownership pro-
gram set up during the 2015 financial year for employees
with a target agreement or who were eligible for a profit-
sharing bonus, and, in this context, acquisition of (own)
shares in advance of the 2015 share ownership program,
and the sale or resale of unused own shares as part of
the share ownership program. The Supervisory Board
was also informed by the Executive Board regarding the
status of the audits and preparations involved for the
conversion of the company into a partnership limited by
shares (KGaA).
At its meeting of April 14, 2015, the Supervisory Board
primarily dealt with the preparations for the upcoming
shareholders’ meeting. Changes to the executive organi-
zation chart for the company’s Executive Board were also
agreed.
As part of a circular resolution in June 2015, the Super-
visory Boards delegated to the Executive Committee of
the Supervisory Board its responsibility to pass resolu-
tions that are required in conjunction with drawing down
the authorized capital in order to repurchase shares of
Axel Springer Digital Classifieds GmbH.
At an extraordinary general meeting of the full board and
the Executive Committee of the Supervisory Board,
which was held via teleconference on July 22, 2015, a
scheduled albeit not yet implemented acquisition by the
company was agreed.
At its meeting of September 2, 2015, the Executive
Board reported on business developments as of July
2015. Furthermore, the Supervisory Board was informed
about the status of the scheduled purchase of additional
shares in order to acquire a controlling interest in Busi-
ness Insider Inc.. The status of the investigation regard-
ing the case of fraud discovered within logistics in 2013
as well as the resulting consequences and measures
were dealt with in detail. The Supervisory Board also
passed a resolution to set targets for the proportion of
women on the company’s Supervisory Board and Exec-
utive Board as well as the deadline within which these
targets ought to be achieved, along with the conclusion
of a settlement agreement between the company and Dr.
Krauß regarding actions for nullification still pending
against the resolutions of the annual shareholders’ meet-
ings in 2009 and 2010. The Supervisory Board finally
agreed to the appointment of various Editor-in-Chiefs.
In its meeting of November 3, 2015, the Supervisory
Board dealt primarily with and discussed the business
strategy of Axel Springer based on a comprehensive
83
Annual Report 2015
Axel Springer SE
Report of the Supervisory Board
presentation by the Executive Board. The acquisition of
shares held by General Atlantic in Axel Springer Digital
Classifieds GmbH and the preparations involved for the
conversion of Axel Springer SE into a partnership limited
by shares (KGaA) were also dealt with in this context. The
Supervisory Board also adopted a resolution regarding
the 2015 Declaration of Conformity. It also carried out a
questionnaire-based self-evaluation of its efficiency and
after discussions based upon this rated its work as still
being efficient. Furthermore, the Executive Board in-
formed the Supervisory Board about the status of the
BaFin enforcement proceedings concluded in the mean-
time regarding the 2012 consolidated financial statements,
the economic performance as of September 30, 2015,
the company’s current transaction pipeline status.
Conflicts of interest
A Supervisory Board member was subject to a tempo-
rary conflict of interest during the financial year regarding
a business object that the Supervisory Board had
passed resolution and consulted on. The Supervisory
Board member subjected to a conflict of interest was
excluded from the consultation and resolution process
for this business object.
Corporate governance
The Executive Board and Supervisory Board issued their
common Declaration of Conformity (pursuant to Sec-
tion 161 of the German Stock Corporations Act (AktG))
in November 2015. This explanation with information on
exceptions to the recommendations made in the GCGC
is made permanently available on the company's website.
It is presented on page 67 of the present Annual Report.
Additional information on corporate governance in the
Axel Springer Group may be found in the joint Corporate
Governance Report of the Executive Board and Supervi-
sory Board (see page 67).
Work of the committees of the
Supervisory Board
In the interest of performing its duties in an efficient manner,
the Supervisory Board has formed an Executive Committee,
an Audit Committee, a Personnel Committee, and a Nomi-
nating Committee as permanent committees. The Chair-
man of the Audit Committee is Lothar Lanz, and in the
other committees Chairman of the Supervisory Board, Dr.
Giuseppe Vita fulfills that role. The Committee Chairmen
report on the work of the committees in the subsequent
meeting of the Supervisory Board.
Notwithstanding the general responsibility of the full Super-
visory Board, the Executive Committee is responsible for
matters that are exclusively or predominantly related to
publishing and journalism and for matters of strategy, fi-
nancial planning, capital expenditures, and the financing of
investment. It is in particular responsible, instead of the
Supervisory Board, for approving significant management
actions undertaken by the Executive Board concerning
investments or operative business operations. Finally, the
Executive Committee prepares decisions regarding the
organization of the Executive Board and takes decisions,
within stipulated limits, regarding the approval to sell shares
of the company and subscription rights to such shares.
The members of the Executive Committee are Dr.
Giuseppe Vita, acting as the Chairman, Dr. h. c. Friede
Springer, acting as the Vice Chairwoman, and Lothar Lanz
and Prof. Dr.-Ing. Wolfgang Reitzle.
The Executive Committee held nine meetings during the
reporting period, of which five were extraordinary meetings;
members of the Executive Board also took part frequently
at these meetings. The Executive Committee agreed,
amongst other things, the following transactions: In January
2015, the acquisition of an initial amount of up to 10.4 % of
shares and then in September the acquisition of up to 91 %
of shares in Business Insider, Inc., the acquisition of 100 %
of shares in Ictjob SPRL via Stepstone GmbH, the stake in
the LAKESTAR II venture capital fund, the exercising of a
put option vis à vis Do⁄an TV, the sale of 100 % of shares
in Smart AdServer Group, via AuFeminin SA, to Cathay
Capital, the combination of the real estate portals Immo-
welt and Immonet under the management of Axel Springer
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Annual Report 2015
Axel Springer SE
Report of the Supervisory Board
Digital Classifieds as well as the associated acquisition of
the stake held by Madsack GmbH & Co. KG in Immonet,
the acquisition of 100 % of shares in Livingly Media, Inc. via
AuFeminin SA, the establishment of a joint venture in Swit-
zerland with Ringier AG, the sale of the stake (50.1 %) in
Runtastic GmbH to the Adidas Group, as well as the sale
of the 90 % stake in Automotive Exchange Private Limited,
India (“CarWale”).
Matters consulted and decided on included, amongst other
things, the financing of the company and planned transac-
tion projects, including in particular the refinancing and
replacement of the credit facility from 2012, the sale of
parts of the Axel Springer building in Hamburg, the conclu-
sion of an urban development contract with the city of
Berlin for the development of Lindenfeld and the standardi-
zation of the Bonial Group’s shareholder structures through
the establishment of a holding company. Other matters
also consulted and decided on included the drawing down
of the authorized capital, the increase of the capital stock
by € 8,955,311 and the issue of 8,955,311 new shares to
General Atlantic associated with the exercising of the call
option with regard to the 15 % stake in Axel Springer Digital
Classifieds GmbH still held by General Atlantic; the respon-
sibility for passing resolutions had been transferred to the
Executive Committee by way of a resolution passed by the
Supervisory Board in July 2015. The subject matter here
was merely decisions about granting approval to conclude
control and profit and loss transfer agreements within the
Group as well as to transfer shares in the company in
accordance with Article 5 (3) of the Company’s Articles of
Incorporation.
The Personnel Committee is responsible in particular for
preparing decisions on the appointment and dismissal of
Executive Board members. It is also responsible for prepar-
ing the resolutions to be adopted by the Supervisory Board
on the compensation of individual members of the Execu-
tive Board. If the Personnel Committee consists of three or
more members, then it approves resolutions in lieu of the
Supervisory Board in all other matters pertaining to em-
ployment contracts; the same applies in matters pertaining
to the extension of loans within the meaning of Sections 89,
115 AktG and on the approval of contracts with Superviso-
ry Board members pursuant to Section 114 AktG. If the
Personnel Committee consists of two members, then it is
responsible for preparing the resolutions to be adopted by
the Supervisory Board regarding such matters. To the
extent it bears responsibility, the Personnel Committee also
represents the company in transactions with individual
Executive Board members. Finally, if the Personnel Com-
mittee consists of three or more members, then it shall
decide on granting approval for management actions as-
signed to it that require approval; if it consists of two mem-
bers, then it is responsible for preparing the resolutions to
be adopted by the Supervisory Board regarding such
business matters. The members of the Personnel Commit-
tee are Dr. Giuseppe Vita, acting as the Chairman, and
Dr. h. c. Friede Springer, acting as the Vice Chairwoman.
The Personnel Committee met five times during the report-
ing period. It also prepares the resolutions to be adopted
by the full board regarding extension of the term of a
member of the Executive Board alongside the associated
extension of the employment contract as a member of the
Executive Board. It also dealt with the individual goals and
corporate goals for the cash component of the variable
compensation of the Executive Board.
The Audit Committee, notwithstanding the responsibility
of the full Supervisory Board, is responsible for preparing
the decisions to be made by the Supervisory Board on the
adoption of the separate financial statements of the parent
company and the approval of the consolidated financial
statements of the Group, by means of conducting a prelim-
inary review of the separate financial statements, the De-
pendency Report, and the consolidated financial state-
ments, as well as the management report for the company
and the management report for the Group, the review of
the profit utilization proposal, the discussion of the audit
report with the independent auditor, as well as the monitor-
ing of the accounting process and the audit, in this regard
in particular the independence of the auditor, the monitor-
ing of the effectiveness of the risk management system, the
internal control system (ICS), the compliance management
system and the internal auditing system. It is also responsi-
ble for reviewing the interim financial statements and interim
reports, and for discussing the report of the independent
auditor on the critical review of the interim financial state-
ments. With regard to the audit of the financial statements,
85
Annual Report 2015
Axel Springer SE
Report of the Supervisory Board
the Audit Committee is responsible for preparing the pro-
posal of the Supervisory Board to the annual shareholders’
meeting on the election of the independent auditor and the
engagement of the independent auditor, and for adopting
audit priorities, among other matters. The Audit Committee
consists of Lothar Lanz, acting as the Chairman, Dr.
Giuseppe Vita, acting as the Vice Chairman, and Oliver
Heine, Rudolf Knepper and Dr. h. c. Friede Springer, all of
whom are additional members of the Audit Committee.
The Audit Committee held five meetings during the
course of the financial year. It has been informed of the
scope, course, and result of the 2014 annual financial
statements and consolidated financial statements, the
decisions of the Supervisory Board regarding adoption of
the financial statements, and prepared approval of the
Group consolidated statements as well as the audited
interim financial statements and reports for 2015. Along-
side this the Audit Committee handled preparation of the
passing of the resolution by the full board regarding the
proposal at the annual shareholders' meeting to com-
mission the independent auditor for the 2015 financial
year. To this effect, the Supervisory Board was also in
receipt of written confirmation from Ernst & Young
GmbH Wirtschaftsprüfungsgesellschaft regarding their
independence. In addition, the Audit Committee dealt
with the audit priorities of the independent auditor for
the 2015 financial year and issued the auditor with the
audit assignment for the 2015 financial year. The Audit
Committee also dealt with the monitoring of the effec-
tiveness of the risk management system, the internal
control system (ICS), of the compliance management
system and of the internal audit system, as well as addi-
tional compliance issues.
The Nominating Committee prepares the proposal of
the Supervisory Board to the annual shareholders’ meet-
ing on the election of Supervisory Board members; in
particular, it proposes suitable candidates for the Super-
visory Board, also in consideration of the diversity and
independence criteria adopted by the Supervisory Board.
It develops and reviews job profiles relative to the qualifi-
cations expected of Supervisory Board members by the
company, and continually adapts them to suit changing
requirements. The members of the Nominating Commit-
tee are Dr. Giuseppe Vita, acting as the Chairman, and
Dr. h. c. Friede Springer, acting as the Vice Chairwoman.
The Nominating Committee did not meet during the
financial year.
Separate financial statements of the
parent company and consolidated
financial statements of the Group;
management report for the parent
company and the Group
Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft
audited the annual financial statements of the parent
company and the consolidated financial statements of the
Group, as well as the combined management report of
the parent company and the Group, all of which were
prepared by the Executive Board for financial year 2015,
and issued an unqualified audit opinion in every case. In
connection with the audit, the independent auditor also
noted in summary that the Executive Board has imple-
mented a risk management system that fulfills the re-
quirements of law, and that this system is generally suita-
ble 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
Executive Board for the utilization of the distributable
profit, as well as the audit reports of Ernst & Young
GmbH Wirtschaftsprüfungsgesellschaft, were provided
to all members of the Supervisory Board in a timely
manner. The documents were audited and discussed in
the presence of the independent auditor in the meeting
of the Audit Committee on February 29, 2016. The inde-
pendent auditor reported on the key results of the audit
and was available for additional information if required.
No deficiencies in the internal control and risk manage-
ment system, as it relates to the financial accounting
process, were noted. The independent auditor explained
further the scope, priorities, and costs of the audit. No
circumstances that would cast doubt on the impartiality
of the independent auditor arose. The Audit Committee
resolved to recommend to the Supervisory Board that it
approve the separate financial statements of the parent
86
Annual Report 2015
Axel Springer SE
Report of the Supervisory Board
company and the consolidated financial statements of
the Group, as well as the combined management report
of the parent company and the Group.
“Based on the audit and evaluation conducted in ac-
cordance with our professional duties, we hereby con-
firm that
The Audit Committee reported to the Supervisory Board in
the balance sheet meeting of March 1, 2016 on the inves-
tigations carried out by the Committee and the results
thereof, alongside their recommendations for approval of
the separate financial statements of the parent company
and consolidated financial statements of the Group, and
the combined management report of the parent company
and the Group. The Supervisory Board has reviewed the
documents in question, having noted and duly considered
the report and recommendations of the Audit Committee
and the reports of Ernst & Young GmbH Wirtschafts-
prüfungsgesellschaft, 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 noted that it had no objections to
raise. Based on the recommendations of the Audit
Committee, the Supervisory Board approved the annual
financial statements of the parent company and the
consolidated financial statements of the Group, as well
as the combined management report of the parent com-
pany and the Group, all of which were prepared by the
Executive Board. Accordingly, the annual financial
statements of Axel Springer SE were officially adopted.
The Supervisory Board also reviewed the proposal of the
Executive Board concerning the utilization of the distrib-
utable profit and concurred with that proposal, in con-
sideration of the company’s financial year net income,
liquidity, and financing plan.
The Executive Board also submitted its report on the
company’s dealings with related parties pursuant to
Section 312 of the German Stock Corporations 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
Supervisory Board in advance. The audit opinion of the
independent auditor reads as follows:
1. the factual information contained in the report is cor-
rect;
2. the consideration provided by the company in respect
of the legal transactions mentioned in the report was
not inappropriately high.”
The Supervisory Board also reviewed the report of the
Executive 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 1, 2016, the independent auditor also
reported orally on the principal findings of the audit and
provided additional information, as requested. The Su-
pervisory 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 Executive Board’s decla-
ration on the report pursuant to Section 312 (3) AktG.
Thanks to the members of the Executive
Board and to all employees
Finally, the Supervisory Board wishes to thank all mem-
bers of the Executive Board and all employees for their
outstanding work in the past year.
Berlin, March 1, 2016
The Supervisory Board
Dr. Giuseppe Vita
Chairman
87
Consolidated
Financial Statements
89 Responsibility Statement
90 Auditor’s Report
91 Consolidated Statement of Financial Position
93 Consolidated Statement
of Comprehensive Income
94 Consolidated Statement of Cash Flows
95 Consolidated Statement
of Changes in Equity
96 Consolidated Segment Report
Notes to the Consolidated
Financial Statements
97 General information
119 Notes to the consolidated statement
of financial position
143 Notes to the consolidated statement
of comprehensive income
149 Notes to the consolidated statement
of cash flows
150 Notes to the consolidated segment report
152 Other disclosures
88
Annual Re
Axel Sprin
eport 2015
nger SE
Resp
ponsib
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Statem
ment
Consolidate
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esponsibility
Statements
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Berlin, Feb
6
bruary 16, 2016
Axel Spring
ger SE
Dr. Mathias
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Jan Bayer
Dr. Julian D
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Dr. Andreas W
Wiele
89
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Auditor’s Report
Auditor’s Report
We have audited the consolidated financial statements
prepared by Axel Springer SE, 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 state-
ments – together with the combined management report
of the Axel Springer Group and Axel Springer SE for the
fiscal year from January 1 to December 31, 2015. The
preparation of the consolidated financial statements and
the combined management report of the Axel Springer
Group and Axel Springer SE in accordance with IFRS as
adopted by the EU, and the additional requirements of
German commercial law pursuant to Sec. 315a (1) HGB
[“Handelsgesetzbuch” - German Commercial Code] are
the responsibility of the parent company’s management.
Our responsibility is to express an opinion on the consol-
idated financial statements and on the combined man-
agement report of the Axel Springer Group and Axel
Springer SE based on our audit.
We conducted our audit of the consolidated financial
statements in accordance with Sec. 317 HGB and Ger-
man generally accepted standards for the audit of finan-
cial 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 state-
ments in accordance with the applicable financial report-
ing framework and in the combined management report
of the Axel Springer Group and Axel Springer SE are
detected with reasonable assurance. Knowledge of the
business activities and the economic and legal environ-
ment of the Group and expectations as to possible mis-
statements are taken into account in the determination of
audit procedures. The effectiveness of the accounting-
related internal control system and the evidence support-
ing the disclosures in the consolidated financial state-
ments and the report on the situation of the company
Axel Springer SE and the Axel Springer Group are exam-
ined 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 consolida-
tion, 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 report on the situation of the
Axel Springer Group and Axel Springer SE. In our opinion,
our audit provides a sufficiently sound basis for our opin-
ion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the
consolidated financial statements comply with IFRS as
adopted by the EU, the additional requirements of Ger-
man commercial law pursuant to Sec. 315a (1) HGB and
give a true and fair view of the net assets, financial posi-
tion, and results of operations of the Axel Springer Group
in accordance with these requirements. The combined
management report of the Axel Springer Group and Axel
Springer SE is consistent with the consolidated financial
statements and as a whole provides a suitable view of
the Group’s position and suitably presents the opportu-
nities and risks of future development.
Berlin, February 19, 2016
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
Ludwig
Wirtschaftsprüfer
Mielke
Wirtschaftsprüferin
90
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
€ millions
ASSETS
Non-current assets1)
Intangible assets1)
Property, plant, and equipment
Investment property
Non-current financial assets
Investments accounted for using the equity method
Other non-current financial assets
Receivables due from related parties
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 assets1)
1) Regarding the adjustment of the prior-year figures see note (4a).
Note 12/31/2015
12/31/2014 01/01/2014
(4)
(5)
(6)
(7)
(37)
(10)
(27)
(8)
(9)
(37)
(10)
(30)
(2c), (11)
5,187.2
4,466.5
3,831.3
3,897.0
3,169.0
2,562.5
507.5
33.2
662.7
91.6
571.0
0.1
7.9
32.1
46.8
523.5
31.3
633.2
51.2
582.0
30.9
15.6
8.5
54.4
640.3
55.0
433.9
8.7
425.2
25.5
19.8
53.1
41.2
1,317.4
1,241.9
1,093.6
20.1
570.9
7.1
58.2
96.2
253.8
311.1
23.6
523.8
12.7
46.7
156.1
383.1
95.9
23.5
472.8
10.4
40.8
81.6
248.6
215.9
6,504.7
5,708.5
4,924.8
91
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Consolidated Statement of Financial Position
€ millions
EQUITY AND LIABILITIES
Equity1)
Shareholders of Axel Springer SE1)
Non-controlling interests1)
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 liabilities1)
1) Regarding the adjustment of the prior-year figures see note (4a).
Note 12/31/2015
12/31/2014 01/01/2014
(12)
2,511.5
2,505.7
2,395.0
2,062.7
2,024.1
1,869.9
448.8
481.6
525.1
2,455.5
2,169.6
1,601.7
267.0
56.0
718.7
0.7
4.1
241.7
313.5
928.1
20.8
169.1
1.1
316.3
65.0
376.6
76.7
1,195.3
1,047.0
0.3
4.4
393.0
481.2
0.3
7.7
333.3
327.9
1,537.8
1,033.2
23.0
234.6
57.6
342.9
19.3
42.8
656.8
160.8
23.1
209.6
3.9
313.2
270.7
9.2
40.4
365.8
68.0
11.0
37.8
326.7
90.8
6,504.7
5,708.5
4,924.8
(14)
(15)
(16)
(37)
(17)
(27)
(14)
(15)
(16)
(37)
(17)
(2c), (11)
92
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive
Income
€ millions
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
Income from continued operations
Income from discontinued operations
Net income
Net income attributable to shareholders of Axel Springer SE
Net income attributable to non-controlling interests
Basic/diluted earnings per share (in €) from continued operations
Basic/diluted earnings per share (in €) from discontinued operations
(28)
(28)
2.50
0.03
€ millions
Consolidated Statement of Recognized Income and Expenses
Note
Net income
Actuarial gains/losses from defined benefit pension obligations
Items that may not be reclassified into the income statement in future periods
Currency translation differences
Changes in fair value of available-for-sale financial assets
Changes in fair value of derivatives in cash flow hedges
Other income/loss from investments accounted for using the equity method
Items that may be reclassified into the income statement in future periods if certain criteria are met
Other income/loss
Comprehensive income
Comprehensive income attributable to shareholders of Axel Springer SE
Comprehensive income attributable to non-controlling interests
(29)
2015
307.4
24.5
24.5
60.2
12.1
0.2
– 2.6
69.8
94.3
401.7
332.6
69.1
93
Note
2015
2014
3,294.9
3,037.9
271.8
47.3
164.7
29.0
– 1,013.5
– 990.0
– 1,100.3
– 974.4
– 199.8
– 255.6
– 862.2
– 757.2
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
(27)
(2d)
24.7
1.7
23.0
– 22.2
– 136.2
304.6
2.8
307.4
252.4
55.0
81.4
– 2.5
83.9
– 21.1
– 78.9
235.7
668.3
904.1
799.8
104.3
1.71
6.37
2014
904.1
– 73.0
--- 73.0
– 27.2
– 13.1
– 0.1
0.4
--- 40.0
--- 113.0
791.0
694.7
96.3
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
€ millions
Net income
Reconciliation of net income to the cash flow from operating activities
Depreciation, amortization, impairments, and write-ups
Result from investments accounted for using the equity method
Dividends received from investments accounted for using the equity method
Result from disposal of consolidated subsidiaries and business units and intangible assets, property, plant,
and equipment, and financial 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 1)
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 non-current financial assets
Proceeds from investments in short-term financial funds
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 non-current financial assets
Cash flow from investing activities 1)
Dividends paid to shareholders of Axel Springer SE
Dividends paid to other shareholders
Purchase of non-controlling interests
Disposal of non-controlling interests
Repayments of liabilities under finance leases
Proceeds from other financial liabilities
Repayments of other financial liabilities
Other financial transactions
Cash flow from financing activities 1)
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 relating to assets held for sale
Cash and cash equivalents at end of period
1) For the portion attributable to discontinued operations see note (2d).
€ millions
Cash flows contained in the cash flow from operating activities
Income taxes paid
Income taxes received
Interest paid
Interest received
Dividends received
94
Note
(7a)
(7a)
(30)
2015
307.4
194.9
– 1.7
3.2
2014
904.1
249.9
2.5
3.0
– 127.5
– 746.9
– 22.8
2.6
– 18.2
– 39.7
15.7
55.7
369.6
61.6
19.0
– 42.0
5.1
– 18.6
23.8
– 39.2
360.8
0.7
535.1
225.6
0.0
– 96.2
(2c)
157.0
71.2
3.7
– 131.4
(2c)
– 637.8
– 507.7
– 70.7
(30)
--- 546.4
– 178.1
– 7.6
– 32.6
0.2
– 0.6
667.6
– 64.8
92.7
– 178.1
– 102.7
– 460.8
6.0
– 0.9
567.0
– 465.2
– 170.9
67.5
51.1
--- 125.8
1.1
0.1
383.1
– 4.7
253.8
– 3.5
--- 343.8
109.6
– 2.8
0.1
248.6
27.6
383.1
(30)
(30)
2015
2014
– 174.9
– 147.5
40.1
– 24.2
3.5
13.5
34.0
– 30.4
5.6
14.9
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
Accumulated other comprehensive income
Changes in fair value
Sub-
scribed
capital
Ad-
ditional
paid-in
capital
Accumu-
lated
retained
earnings
Treasury
shares
Currency
translation
Available-
for-sale
financial
assets
Deriva-
tives in
cash flow
hedges
Share-
holders of
Axel
Springer
SE
Other
equity
Non-
controlling
interests
Equity
98.9
44.2
1,781.6
0.0
--- 3.7
9.4
--- 0.3
--- 60.3
1,869.9
374.1
2,244.0
98.9
44.2
1,781.6
0.0
--- 3.7
9.4
--- 0.3
--- 60.3
1,869.9
525.2
2,395.0
0.0
151.0
151.0
799.8
799.8
– 178.1
– 23.3
--- 23.3
– 9.1
--- 9.1
– 0.1
--- 0.1
– 72.6
– 105.1
--- 72.6
694.7
– 8.2
96.3
– 113.3
791.0
799.8
104.3
904.1
– 178.1
– 51.2
– 229.2
0.0
9.5
9.5
– 364.9
– 99.2
– 464.1
2.5
1.2
3.7
– 363.5
– 1.4
1.1
1.4
98.9
45.3
2,041.2
0.0
--- 28.5
0.3
--- 0.4
--- 132.9
2,024.1
481.6
2,505.7
252.4
252.4
– 178.1
– 130.9
46.1
46.1
12.1
12.1
0.1
0.1
21.9
21.9
252.4
80.3
332.6
55.0
14.0
69.1
307.4
94.3
401.7
– 178.1
– 63.5
– 241.6
– 130.9
70.3
– 60.6
9.0
453.9
– 461.5
13.9
0.6
– 14.8
15.2
– 0.4
– 109.5
– 94.3
0.9
0.5
13.8
107.9
499.8
1,508.4
0.0
31.5
12.4
--- 0.3
--- 97.1
2,062.7
448.8
2,511.5
€ millions
Balance as of
01/01/2014
Adjustments from prior
periods
Balance as of
01/01/20141)
Net income
Other income/loss
Comprehensive income
Dividends paid
Change in consolidated
companies
Purchase and disposal of
non-controlling interests1)
Other changes
Balance as of
12/31/20141)
Net income
Other income/loss
Comprehensive income
Dividends paid
Change in consolidated
companies
Purchase and disposal of
non-controlling interests
Other changes
Balance as of
12/31/2015
1) Regarding the adjustment of the prior-year figures see note (4a).
95
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Consolidated Segment Report
Consolidated Segment Report
Operating segments (32)1)
€ millions
External revenues
Internal revenues
Segment revenues
EBITDA 2)
EBITDA margin 2)
Thereof income from
investments
Thereof accounted for
using the equity method
Depreciation, amortiza-
tion, impairments and
write-ups (except from
non-recurring effects and
purchase price
allocations)
EBIT 2)
Amortization and
impairments from
purchase price
allocations
Non-recurring effects
Segment earnings before
interest and taxes
Financial result
Income taxes
Income from continued
operations
Income from
discontinued operations
Net income
Classified Ad Models
Paid Models
Marketing Models
Services/Holding
Consolidated totals
2015
753.1
0.5
753.6
305.0
2014
2015
2014
512.0
1,582.2
1,617.5
0.5
3.0
6.0
2015
878.9
11.2
512.5
1,585.2
1,623.4
890.1
217.7
223.2
251.4
88.0
2014
794.1
14.7
808.8
106.5
2015
80.7
160.7
241.4
2014
2015
2014
114.4
3,294.9
3,037.9
188.9
303.3
--- 57.1
--- 68.5
559.0
507.1
40.5 %
42.5 %
14.1 %
15.5 %
10.0 %
13.4 %
17.0 %
16.7 %
– 1.0
– 1.5
– 1.0
– 1.5
5.3
1.6
8.0
3.6
– 0.7
4.2
– 7.6
– 3.3
0.1
0.6
0.1
3.8
10.7
0.0
– 6.5
– 1.2
– 29.9
275.1
– 19.1
– 33.8
198.6
189.4
– 37.1
214.3
– 12.6
– 16.9
– 33.7
– 39.4
– 110.0
– 112.5
75.3
89.6
--- 90.8
--- 108.0
449.0
394.6
– 54.6
– 18.5
– 37.0
– 20.8
– 19.1
41.6
86.9
– 1.5
– 9.5
35.6
– 47.6
37.8
0.0
– 5.1
– 0.1
– 84.9
– 103.9
– 32.9
98.9
45.0
202.0
203.2
255.5
193.7
101.5
79.8
– 95.9
– 140.9
463.0
335.7
– 22.2
– 21.1
– 136.2
– 78.9
304.6
235.7
2.8
307.4
668.3
904.1
1) Prior-year figures were adjusted due to a change of the segmentation (see note (32)).
2) Adjusted for non-recurring effects (see note (32)).
Geographical information (32)
€ millions
Germany
Other countries
Consolidated totals
2015
2014
2015
2014
2015
2014
External revenues (32)
1,721.4
1,728.7
1,573.5
1,309.3
3,294.9
3,037.9
Non-current segment assets (32)
1,378.6
1,099.1
3,059.0
2,474.0
4,437.7
3,573.1
96
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial
Statements
General information
(1) Basic principles
Axel Springer SE is a European exchange-listed stock
corporation (Societas Europaea) with its registered head
office in Berlin, Germany. The principal activities of Axel
Springer SE and its subsidiaries (“Axel Springer Group”,
“Axel Springer” or the “Group”) are described in note
(31a).
On February 16, 2016, the Executive Board of Axel
Springer SE authorized the consolidated financial state-
ments for fiscal year 2015 and subsequently presented
them to the Supervisory Board for approval. The consol-
idated financial statements were prepared by application
of Sec. 315a HGB in accordance with the International
Financial Reporting Standards (IFRS) of the International
Accounting Standards Board (IASB) and the interpreta-
tions of the IFRS Interpretations Committee (IFRS IC)
approved by the IASB, in effect and recognized by the
European Union (EU) on the reporting date. The report-
ing currency is the euro (€); unless otherwise indicated,
all figures are stated in euro millions (€ millions). Totals
and percentages have been calculated based on the
euro amounts before rounding and may differ from a
calculation based on the reported million euro amounts.
The consolidated financial statements and consolidated
management report will be published in the Federal
Gazette in Germany.
(2) Consolidation
(a) Consolidation principle
The financial consolidated statements include Axel
Springer SE and its subsidiaries over which Axel Springer
SE either directly or indirectly has control, can influence
variable outflows from the subsidiary, and is exposed to
the variability of these outflows.
The consideration transferred in business combinations
is offset against the pro-rated fair value of the acquired
assets and liabilities on the acquisition date. Any remain-
ing positive difference allocated to our interests is capital-
ized as goodwill and recognized in the amount allocated
to our shares, unless we acquire all shares in the com-
pany. Negative differences are immediately recognized
as income. The acquisition date indicates the time at
which the option for gaining control of the acquired busi-
ness or company was obtained. We offset differences
arising from disposals and purchases of non-controlling
interests in equity.
Associated companies in which the Axel Springer Group
can exert significant influence over the financial and
operating policies, as well as joint venture companies
that are managed jointly by Axel Springer and one or
more other parties, are included in the consolidated
financial statements by application of the equity method.
The IFRS separate and consolidated financial statements
of these companies as at the Axel Springer Group’s
reporting date, respectively, serve as the basis for apply-
ing the equity method. Goodwill and assets and liabilities
included in the amortized carrying amount are accounted
for using the accounting principles applied to business
combinations. Losses 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 prof-
its and losses are eliminated on a pro-rated basis. The
carrying amounts of investments are tested for impair-
ment; if impairments exist, they are written down to the
lower recoverable amount.
97
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(b) Companies included in the consolidated
financial statements
Companies included in the consolidated financial state-
ments broke down as follows:
Fully consolidated companies
Germany
Other countries
Investments accounted for using the
equity method
Germany
Other countries
12/31/2015 12/31/2014
75
105
5
6
67
92
5
5
Consolidated companies are listed in note (43). Essen-
tially, the following changes occurred in 2015:
At the beginning of January, we acquired 51 % of the
shares in @Leisure Group, Amsterdam, Netherlands. As
a consequence of this acquisition, @Leisure Holding
B.V., Amsterdam, Netherlands, and four further foreign
entities as well as two domestic entities were fully con-
solidated since the acquisition date.
Since the beginning of January, Axel Springer Plug and
Play Accelerator GmbH, Berlin, has been included in our
consolidated financial statements using the equity meth-
od.
At the beginning of January, we acquired 100 % of the
shares in ictjob SPRL, Waterloo, Belgium and have fully
consolidated the company since the acquisition date.
In February, we acquired 100 % of the shares in Topic
Travel B.V., The Hague, Netherlands, and 100 % of the
shares in Livingly Media, Inc., San Carlos, USA. We have
fully consolidated the two companies since then.
In April, we acquired 100 % of the shares in profes-
sion.hu Kft., Budapest, Hungary, and have fully consoli-
dated the company since then.
At the end of April, we sold all of our shares in the previ-
ously fully consolidated Smart AdServer, Paris, France.
In the course of the combining of the Immowelt Group
and the Immonet Group, we acquired 55 % of the
shares in Immowelt Group, Nuremberg, at the end of
June. As a consequence of the transaction, we have fully
consolidated two domestic companies for the first time.
At the beginning of July, we gained control over Bonial
Enterprises GmbH & Co. KG, Berlin, due to the cessa-
tion of contractual constraints with respect to voting
rights. Since then, we have fully consolidated this com-
pany and a further foreign company, which both had
formerly been included in our consolidated financial
statements using the equity method.
At the end of July, we sold our shares in in the previously
fully consolidated Talpa Germany GmbH & Co. KG,
Hamburg. At the beginning of August, we disposed of
our shares in the previously fully consolidated runtastic
GmbH, Pasching, Austria.
At the beginning of September, we acquired 70 % of the
shares in Saknai Net Ltd., Tel Aviv, Israel, and have in-
cluded this company as a fully consolidated subsidiary in
our consolidated financial statements since then.
At the beginning of October, we acquired 25.6 % of the
shares in Thrillist Media Group, Inc., Delaware, USA, and
have included the company in the consolidated financial
statements using the equity method since then.
Also in October, we acquired 100 % of the shares in Aan
Zee “Gezellige Vakantiehuizen” B.V., Bergen, Nether-
lands, and 100 % of the shares in Villa XL B.V., Bergen,
the Netherlands, and have fully consolidated the compa-
nies since then.
At the end of October, we increased our share of 8.7 %
in Business Insider, Inc., New York, USA, acquired in
January to 96.5 %. We have fully consolidated this com-
pany and a further foreign company since then.
98
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
At end of October, we sold our shares in the previously
fully consolidated "Axel Springer Russia" Geschlossene
Aktiengesellschaft, Moscow, Russia.
In mid-December, we disposed of our shares in PRI-
NOVIS Ltd. & Co. KG, Hamburg, which had been includ-
ed in our consolidated financial statements using the
equity method.
(c) Acquisitions and divestitures
At the beginning of January, we acquired 51 % of the
shares in @Leisure Holding B.V., Amsterdam, Nether-
lands and thus of the @Leisure Group. @Leisure is a
leading European operator of online brokerage portals
for vacation home rentals. Through the majority invest-
ment in @Leisure, Axel Springer complements its existing
digital activities in the travel segment.
The acquisition costs paid in the reporting period
amounted to € 64.8 million and comprised the purchase
price amounting to € 56.8 million as well as the payment
of liabilities assumed in the amount of € 8.0 million. The
acquisition-related expenses recorded in other operating
expenses of the fiscal year amounted to € 0.3 million.
Based on the purchase price allocation, the acquisition
costs were allocated to the purchased assets and liabili-
ties on the acquisition date as follows:
€ millions
Intangible assets
Property, plant, and equipment
Non-current financial assets
Trade receivables
Other assets
Cash and cash equivalents
Trade payables
Provisions and other liabilities
Deferred tax liabilities
Net assets
Share of non-controlling interests in net assets
Acquisition cost
Goodwill
Carrying
amount after
acquisition
84.4
1.0
0.2
16.1
1.7
2.5
– 18.5
– 3.5
– 25.0
59.0
25.2
64.8
31.0
Of the intangible assets acquired, intangible assets with
carrying amounts of € 49.8 million have indefinite useful
lives. The non-tax-deductible goodwill is above all at-
tributable to inseparable values such as employee exper-
tise, the strategic advantages resulting from the leading
market position of the acquired group and expected
synergy effects from the integration, and was allocated
to the Classified Ad Models segment.
The gross amount of the acquired trade account receiv-
ables was € 16.5 million. Corresponding valuation allow-
ances in the amount of € 0.4 million were recorded.
Since first inclusion as of the beginning of January,
@Leisure Group contributed to consolidated revenues in
the amount of € 49.1 million and to consolidated net
income in the amount of € 4.0 million.
At the end of June, the combining of the Immowelt
Group and the Immonet Group belonging to Axel
Springer Digital Classifieds was finalized. Both real estate
portals will be brought under the auspices of the new
Immowelt Holding AG based in Nuremberg. Axel Spring-
er Digital Classifieds has a shareholding of 55 % in the
combined group.
99
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The acquisition costs for the majority shareholding in the
Immowelt Group amounted to € 194.5 million and com-
prised the purchase price paid in the reporting period in
the amount of € 131.0 million, an outstanding purchase
price adjustment of € 1.5 million, and the fair value of 45 %
of the shares in the Immonet Group given in exchange
totaling € 62.0 million. As a result of giving the shares in
the Immonet Group in exchange, and taking into account
their fair value as well as the recognition of non-
controlling interests in the amount of € 16.4 million, a
resulting difference of € 45.6 million was directly offset
against equity, thereof € 6.8 million being attributed to
non-controlling interests. The acquisition-related expens-
es recorded in other operating expenses of the fiscal
year amounted to € 1.1 million.
The non-controlling shareholders were granted fixed-
price put options exercisable at any time until the begin-
ning of 2018 (for 35 % of the shares), as well as one-time
in mid-2019 exercisable put options at performance-
based prices (for 10 % of the shares), which do not
concede any present ownership interest. Thus, the obli-
gation recorded within the balance sheet item other
liabilities representing the discounted redemption amount
with a value of € 194.6 million was directly offset against
equity, thereof € 29.2 million attributed to non-controlling
interests. The changes in equity stemming from the
transaction are shown within the consolidated statement
of changes in equity as part of the line change in consol-
idated companies.
Based on the purchase price allocation, the acquisition
costs were allocated to the purchased assets and liabili-
ties on the acquisition date as follows:
€ millions
Intangible assets
Property, plant, and equipment
Non-current financial assets
Trade receivables
Other assets
Cash and cash equivalents
Trade payables
Provisions and other liabilities
Deferred tax liabilities
Net assets
Share of non-controlling interests in net assets
Acquisition cost
Goodwill
Carrying
amount after
acquisition
159.2
0.4
0.1
2.0
1.5
9.7
– 0.8
– 5.1
– 50.0
117.1
52.7
194.5
130.1
Of the intangible assets acquired, intangible assets with
carrying amounts of € 51.7 million have indefinite useful
lives. The non-tax-deductible goodwill is above all at-
tributable to inseparable values such as employee exper-
tise, expected synergy effects from the integration and
the strategic advantages due to the combining of two
strongly-positioned companies on the real estate classi-
fieds market, and was allocated to the Classified Ad
Models segment.
The gross amount of the acquired trade account receiv-
ables was € 2.2 million. Corresponding valuation allow-
ances in the amount of € 0.2 million were recorded.
Since first inclusion as of the end of June, Immowelt
Group contributed to consolidated revenues in the
amount of € 25.0 million and to consolidated net income
in the amount of € – 3.0 million. If Immowelt Group had
already been fully consolidated at January 1, 2015, it
would have contributed to consolidated revenues in the
amount of € 48.1 million and to consolidated net income
in the amount of € – 5.4 million.
100
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
As part of the expansion of our digital journalistic portfo-
lio in the English-speaking world, we assumed control of
Business Insider Inc., New York, USA, in October
2015. We previously owned 8.7 % of the shares in Busi-
ness Insider and gained control over the company
through the purchase of another 87.8 % of the shares in
October. Axel Springer now holds 96.5 % of the shares.
Business Insider operates the leading digital offering for
business and financial news in the USA.
The preliminary acquisition costs amounted to
€ 356.0 million and included the purchase price of
€ 320.4 million paid in the reporting period, fair value of
the shares held prior to gaining control in the amount of
€ 28.1 million and liabilities of € 7.4 million from com-
mitments in connection with an existing employee stock
option program. The acquisition-related expenses rec-
orded in other operating expenses of the fiscal year
amounted to € 1.6 million. A profit of € 11.1 million from
the fair valuation of the previously-held shares was
shown in income from investments.
Based on the preliminary purchase price allocation, the
preliminary acquisition costs were allocated to the pur-
chased assets and liabilities at the acquisition date as
follows:
€ millions
Intangible assets
Property, plant, and equipment
Trade receivables
Other assets
Cash and cash equivalents
Trade payables
Provisions and other liabilities
Deferred tax liabilities
Net assets
Share of non-controlling interests in net assets
Acquisition cost (preliminary)
Goodwill (preliminary)
Carrying
amount after
acquisition
164.6
1.3
8.6
2.2
27.8
– 0.6
– 5.5
– 65.8
132.6
4.6
356.0
228.0
The purchase price allocation considers all knowledge
and adjusting events about conditions that already exist-
ed on the acquisition date, and has not yet been com-
pleted, particularly due to the closeness in time to the
reporting date.
Of the intangible assets acquired, intangible assets with
carrying amounts of € 159.1 million have indefinite useful
lives. The non-tax-deductible goodwill is above all at-
tributable to inseparable values such as employee exper-
tise, expected synergy effects from the integration and
the strategic advantages resulting from the leading mar-
ket position of the company and its digital reach, and
was allocated to the Paid Models segment.
The gross amount of the acquired trade account receiv-
ables was € 8.8 million. Corresponding valuation allow-
ances in the amount of € 0.1 million were recorded.
Since first inclusion as of October 30, 2015, Business
Insider contributed to consolidated revenues in the
amount of € 9.4 million and to consolidated net income
in the amount of € – 1.1 million. If Business Insider had
already been fully consolidated at January 1, 2015, it
would have contributed to consolidated revenues in the
amount of € 38.5 million and to consolidated net income
in the amount of € – 10.8 million.
Further business combinations that occurred in the
reporting period related to the acquisitions of 100 % of
the shares in ictjob SPRL, Waterloo, Belgium, Interactive
Junction Holding Pty. Ltd., Johannesburg, South Africa,
Topic Travel B.V., The Hague, Netherlands, Nasza Klasa
sp. z o.o., Wroclaw, Poland, Livingly Media, Inc., San
Carlos, USA, profession.hu Kft., Budapest, Hungary,
Praxis SARL, Chambéry, France, Aan Zee "Gezellige
Vakantiehuizen" B.V., Bergen, Netherlands, and Villa XL
B.V., Bergen, Netherlands. Furthermore, we purchased
70 % of the shares in Saknai Net Ltd., Tel Aviv, Israel, a
further 57.9 % of the shares in NARKS INFOSERVIS, a.s.,
Bratislava, Slovakia, as well as a further 32.4 % of the
shares in Sokoweb Technologies, S.L., Barcelona, Spain.
Additionally, we gained control (65 % of the shares) over
Bonial Enterprises GmbH & Co. KG, Berlin. These busi-
ness combinations were carried out in the context of our
101
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
strategy to become the leading digital publisher, and
individually had no material effects on the financial posi-
tion, liquidity, and financial performance of the Axel
Springer Group.
The acquisition costs for the acquisitions – which are
partly preliminary – finalized in the reporting period
amounted to € 141.2 million and contained besides the
purchase prices paid also contingent considerations
totaling € 21.4 million as well as the fair value of the
shares held prior to gaining control amounting to € 14.5
million. A profit of € 10.7 million from the fair value
measurement of the previously-held shares was shown
in income from investments. The acquisition-related
expenses recorded in other operating expenses of the
fiscal year amounted to € 0.5 million.
The contingent considerations resulted from earn-out
agreements as well as from option rights to purchase the
remaining shares and were recorded at fair value at the
acquisition date. The fair value predominantly depends
on the estimated results of the acquired companies in
the years prior to possible payment or exercise dates.
Due to the closeness in time to the publication of these
financial statements, audited financial information regard-
ing the acquired net assets as well as the contributions
to revenues and operating profit are not yet available for
some of the companies.
Based on the purchase price allocations, which are
partly preliminary, the cumulative acquisition costs of the
business combinations finalized in the reporting period
were allocated to the purchased assets and liabilities as
follows:
€ millions
Intangible assets
Property, plant, and equipment
Trade receivables
Other assets
Deferred tax assets
Cash and cash equivalents
Trade payables
Financial liabilities
Provisions and other liabilities
Deferred tax liabilities
Net assets
Acquisition cost (preliminary)
Goodwill (preliminary)
Carrying
amount after
acquisition
63.8
1.1
13.1
1.1
0.5
13.0
– 10.0
– 0.2
– 12.2
– 16.2
54.0
141.2
87.2
The purchase price allocations consider all subsequent
events related to the acquisition date and have not yet
been completed for some acquisitions because of their
closeness in time to the balance sheet date.
Of the intangible assets acquired, intangible assets with
carrying amounts of € 22.6 million have indefinite useful
lives. The non-tax-deductible goodwills are above all
attributable to inseparable values such as employee
expertise and expected synergy effects from the integra-
tion, and were allocated to the Marketing Models
(€ 43.0 million), Classified Ad Models (€ 34.9 million) and
Paid Models (€ 9.3 million) segments.
Since their respective initial consolidations, these com-
panies contributed to consolidated revenues 2015 in the
amount of € 41.9 million and to consolidated net income
2015 in the amount of € – 5.1 million. If these acquisi-
tions had already been finalized at January 1, 2015,
consolidated revenues 2015 would have changed by
€ 59.1 million and consolidated net income 2015 by
€ – 11.0 million.
102
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
In April, aufeminin Group finalized the sale of 100 % of its
shares in Smart AdServer, Paris, France, at a disposal
price totaling € 37 million. The gain on disposal recorded
in other operating income amounted to € 10.2 million.
The following table shows the carrying amounts of the
assets and liabilities disposed of:
€ millions
Goodwill
Intangible assets
Property, plant, and equipment
Non-current financial assets
Trade receivables
Other assets
Deferred tax assets
Cash and cash equivalents
Trade payables
Provisions and liabilities
Disposal net assets
Selling price
Gain on disposal
Carrying
amount
20.1
1.3
0.4
0.2
5.4
3.4
0.1
3.9
– 3.6
– 4.4
26.8
37.0
10.2
In August, the sale of 50.1 % of our shares in runtastic
GmbH, Pasching, Austria, at a disposal price totaling
€ 105.3 million was finalized. The gain on disposal rec-
orded in other operating income amounted to
€ 85.8 million. The following table shows the carrying
amounts of the assets and liabilities disposed of:
€ millions
Goodwill
Intangible assets
Property, plant, and equipment
Trade receivables
Other assets
Cash and cash equivalents
Trade payables
Provisions and liabilities
Deferred tax liabilities
Disposal net assets
Share of non-controlling interests in net assets
Selling price
Gain on disposal
Carrying
amount
13.4
13.1
0.8
2.0
0.7
3.4
– 0.9
– 3.7
– 3.3
25.5
6.1
105.3
85.8
Further divestments finalized in the reporting related to
the disposal of 55 % of the shares in ims Internationaler
Medien Service GmbH & Co. KG, Hamburg, 50.1 % of
the shares in Talpa Germany GmbH & Co. KG, Ham-
burg, 90 % of the shares in Shop Now GmbH, Berlin, as
well as 100 % of the shares in "Axel Springer Russia"
Geschlossene Aktiengesellschaft, Moscow, Russia.
These divestments individually had no material effects on
the financial position, liquidity, and financial performance
of the Axel Springer Group.
The cumulative gain on disposal recorded in other oper-
ating income with respect to these further divestments
amounted to € 12.4 million. The following table shows
the carrying amounts of the assets and liabilities dis-
posed of:
103
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
€ millions
Goodwill
Intangible assets
Property, plant, and equipment
Non-current financial assets
Trade receivables
Other assets
Deferred tax assets
Cash and cash equivalents
Trade payables
Provisions and liabilities
Deferred tax liabilities
Disposal net assets
Share of non-controlling interests in net assets
Cumulative translation differences
Selling price
Gain on disposal
Carrying
amount
11.1
3.4
0.6
0.1
24.6
12.7
1.1
1.1
– 12.1
– 17.9
– 3.1
21.6
4.9
– 1.1
30.2
12.4
In December 2015, Axel Springer increased its share in
Axel Springer Digital Classifieds GmbH from 85 % to
100 %. 8,955,311 new Axel Springer shares were issued
as consideration for the acquisition of the minority share-
holding that was previously held by General Atlantic. The
value of the shareholding taken over totaled
€ 462.9 million; subscribed capital was increased by
€ 9.0 million, the resulting premium in the amount of
€ 453.9 million was assigned to additional paid-in capital.
The proportion of net assets attributable to non-
controlling interests of Axel Springer Digital Classifieds
was reduced by € 109.7 million. The accumulated re-
tained earnings attributable to shareholders of Axel
Springer SE fell by € 367.0 million, and the other accu-
mulated comprehensive income increased by
€ 13.9 million.
Additional transactions carried out in the reporting period,
as well as finalizations of purchase price allocations
arising from acquisitions of companies in the prior year,
had no material effects individually and collectively on the
financial position, liquidity, and financial performance of
the Axel Springer Group.
In September, Ringier and Axel Springer decided upon
the establishment of a further joint venture company in
Switzerland. On the one hand, Ringier contributes all
Swiss-German and West Swiss newspaper titles including
their associated online portals as well as the West Swiss
broadsheet Le Temps; on the other hand, Axel Springer
contributes Axel Springer Schweiz, which combines all
business of Axel Springer SE in Switzerland. The transac-
tion was finalized in January 2016.
The carrying amounts of the assets and liabilities of Axel
Springer Schweiz to be contributed into the joint venture
at the beginning of 2016 were classified as held for sale
as of the reporting date and were comprised of as fol-
lows as of December 31, 2015:
€ millions
Goodwill
Other intangible assets
Property, plant, and equipment
Non-current financial assets
Deferred tax assets
Inventories
Other assets
Cash and cash equivalents
Assets held for sale
Provisions for pensions
Other liabilities
Deferred tax liabilities
Liabilities related to assets held for sale
Carrying
amount
62.3
88.1
4.0
0.3
9.0
0.4
10.1
4.6
178.8
20.3
41.3
10.8
72.4
With regard to Axel Springer Schweiz, accumulated
other comprehensive income from currency translation
related to assets and liabilities held for sale amounted to
€ 40.5 million; other accumulated other comprehensive
income from currency translation related to assets and
liabilities held for sale amounted to € – 5.1 million.
Furthermore, in connection with the contractually agreed
sale of our shareholding in Automotive Exchange
Private Limited, Mumbai, India, (CarWale), assets
104
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
amounting to € 20.8 million (thereof € 11.0 million
goodwill) and liabilities amounting to € 20.7 million were
classified as held for sale as of the reporting date. The
transaction was completed in January 2016. The prelim-
inary purchase price (after deduction of taxes) totaled
€ 64.2 million. Accumulated other comprehensive in-
come regarding unrealized gains from currency transla-
tion related to assets and liabilities held for sale amount-
ed to € 2.2 million.
Acquisitions and divestitures in the prior year:
To broaden our activities in the women’s portals sector,
in January 2014 we acquired 60 % of the shares in My
Little Paris S.A.S., Paris, France, and 100 % of the
shares in Merci Alfred S.A.S., Paris, France via the
aufeminin Group. Reciprocal call and put options were
agreed upon for the remaining 40 % of the shares in My
Little Paris, in which the purchase price to be paid has
not been contractually limited and will be measured by
the future corporate earnings of My Little Paris.
The acquisition costs amounted to € 59.6 million and
consisted of the purchase price of € 21.1 million paid in
2014, the payment of a liability assumed in the amount
of € 0.6 million, and a contingent purchase price liability
in the amount of € 37.9 million for the agreed option
rights, which was recorded on the acquisition date. The
acquisition-related expenses recorded in other operating
expenses of the reporting year 2014 amounted to
€ 0.2 million.
Based on the purchase price allocation, the acquisition
costs were allocated to the purchased assets and liabili-
ties on the acquisition date as follows:
€ millions
Intangible assets
Property, plant, and equipment
Non-current financial assets
Trade receivables
Other assets
Cash and cash equivalents
Provisions and liabilities
Trade payables
Deferred tax liabilities
Net assets
Acquisition cost
Goodwill
Carrying
amount after
acquisition
16.8
0.1
0.1
4.2
1.4
3.4
– 3.9
– 1.6
– 5.8
14.7
59.6
44.9
Of the intangible assets acquired, intangible assets with
carrying amounts of € 10.1 million have indefinite useful
lives. The non-tax-deductible goodwill is above all at-
tributable to inseparable values such as employee exper-
tise and expected synergy effects from the integration,
and was allocated to the Marketing Models segment.
The gross amount of the acquired trade account receiv-
ables was€ 4.4 million. Corresponding valuation allow-
ances in the amount of € 0.2 million were recorded.
Since first inclusion as of January 1, 2014, My Little Paris
and Merci Alfred contributed to 2014 consolidated reve-
nues in the amount of € 22.7 million and to 2014 consol-
idated net income in the amount of € 2.9 million.
At the end of February 2014, we acquired 100 % of the
shares in N24 Media GmbH, Berlin, and thus obtained
control over the N24 Group. The acquisition represents
an additional strategic investment towards digitalization
of journalism. The news station N24 will become a cen-
tralized supplier of video for all Axel Springer brands. At
the same time, N24 and the WELT Group were merged
in the newly-established WeltN24 as of January 1, 2015.
The acquisition costs in the amount of the purchase
price paid in 2014 came to € 116.7 million. The acquisi-
105
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
tion-related expenses recorded in other operating ex-
penses of the reporting year 2014 amounted to
€ 0.3 million.
Based on the purchase price allocation, the acquisition
costs were allocated to the purchased assets and liabili-
ties on the acquisition date as follows:
€ millions
Intangible assets
Property, plant, and equipment
Non-current financial assets
Trade receivables
Other assets
Cash and cash equivalents
Provisions and liabilities
Trade payables
Deferred tax liabilities
Net assets
Acquisition cost
Goodwill
Carrying
amount after
acquisition
42.1
3.9
4.8
7.5
7.1
31.8
– 25.1
– 8.5
– 12.4
51.4
116.7
65.3
Of the intangible assets acquired, intangible assets with
carrying amounts of € 18.0 million have indefinite useful
lives. The non-tax-deductible goodwill is above all at-
tributable to inseparable values such as employee exper-
tise and expected synergy effects from the integration,
and was allocated to the Paid Models segment.
The gross amount of the acquired trade account receiv-
ables was € 8.1 million. Corresponding valuation allow-
ances in the amount of € 0.6 million were recorded.
Since first inclusion as of February 28, 2014 N24 con-
tributed to 2014 consolidated revenues in the amount of
€ 70.2 million and to 2014 consolidated net income in
the amount of € 2.9 million. If N24 had already been fully
consolidated on January 1, 2014, N24 would have con-
tributed to 2014 consolidated revenues in the amount of
€ 83.2 million and to 2014 consolidated net income in
the amount of € 2.5 million.
To broaden our activities in the online classifieds sector,
we acquired 100 % of the shares in Coral-Tell Ltd., Tel
Aviv, Israel, at the end of May 2014. We thus gained
control over the leading classified ad portal Yad2
(yad2.co.il) in Israel. The acquisition was carried out by
Axel Springer Digital Classifieds.
The acquisition costs amounted to € 170.1 million and
consisted of the purchase price paid in 2014. The acqui-
sition-related expenses recorded in other operating
expenses of the reporting year 2014 amounted to
€ 0.4 million.
Based on the purchase price allocation, the acquisition
costs were allocated to the purchased assets and liabili-
ties on the acquisition date as follows:
€ millions
Intangible assets
Property, plant, and equipment
Non-current financial assets
Trade receivables
Other assets
Cash and cash equivalents
Provisions and liabilities
Trade payables
Deferred tax liabilities
Net assets
Acquisition cost
Goodwill
Carrying
amount after
acquisition
78.4
0.2
1.6
5.2
0.5
6.0
– 8.4
– 0.5
– 21.1
61.9
170.1
108.2
Of the intangible assets acquired, intangible assets with
carrying amounts of € 47.3 million have indefinite useful
lives. The non-tax-deductible goodwill is above all at-
tributable to inseparable values such as employee exper-
tise, expected synergy effects from the integration and
the strategic advantages resulting from the leading mar-
ket position of the acquired company, and was allocated
to the Classified Ad Models segment.
106
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The gross amount of the acquired trade account receiv-
ables was€ 5.5 million. Corresponding valuation allow-
ances in the amount of € 0.4 million were recorded.
Since first inclusion as of May 20, 2014 Coral-Tell con-
tributed to 2014 consolidated revenues in the amount of
€ 11.2 million and to 2014 consolidated net income in
the amount of € 3.4 million. If Coral-Tell had already
been fully consolidated on January 1, 2014, Coral-Tell
would have contributed to 2014 consolidated revenues
in the amount of € 17.4 million and to 2014 consolidated
net income in the amount of € 4.2 million.
To broaden our activities in the online classifieds sector,
we acquired 51 % of the shares in Car & Boat Media
S.A.S., Paris, France, at the end of July 2014. With
LaCentrale.fr the company particularly operates the
leading specialized classifieds ad portal for used cars in
France as well as other portals in the car and boat sector.
Reciprocal call and put options were agreed upon for the
remaining 49 % of the shares, in which the purchase
price to be paid will be measured by the future corporate
earnings of Car & Boat Media and has not been contrac-
tually limited. The acquisition was carried out by Axel
Springer Digital Classifieds.
The acquisition costs amounted to € 153.2 million and
consisted of the purchase price paid in 2014 in the
amount of € 72.9 million, and a contingent purchase
price liability in the value of € 80.3 million for the agreed
option rights, which was recorded on the acquisition
date. The acquisition-related expenses recorded in other
operating expenses of the reporting year 2014 amounted
to € 0.5 million.
Based on the purchase price allocation, the acquisition
costs were allocated to the purchased assets and liabili-
ties on the acquisition date as follows:
€ millions
Intangible assets
Property, plant, and equipment
Trade receivables
Other assets
Cash and cash equivalents
Provisions and liabilities
Trade payables
Deferred tax liabilities
Net assets
Acquisition cost
Goodwill
Carrying
amount after
acquisition
81.4
0.7
8.6
2.5
3.2
– 9.8
– 3.5
– 26.6
56.6
153.2
96.6
Of the intangible assets acquired, intangible assets with
carrying amounts of € 38.8 million have indefinite useful
lives. The non-tax-deductible goodwill is above all at-
tributable to inseparable values such as employee exper-
tise, expected synergy effects from the integration and
the strategic advantages resulting from the leading mar-
ket position of the acquired company, and was allocated
to the Classified Ad Models segment.
The gross amount of the acquired trade account receiv-
ables was € 9.7 million. Corresponding valuation allow-
ances in the amount of € 1.1 million were recorded.
Since first inclusion, Car & Boat Media contributed to
2014 consolidated revenues in the amount of
€ 21.3 million and to 2014 consolidated net income in
the amount of € 4.0 million. If Car & Boat Media had
already been fully consolidated on January 1, 2014, Car
& Boat Media would have contributed to 2014 consoli-
dated revenues in the amount of € 50.4 million and to
2014 consolidated net income in the amount of
€ 9.1 million.
To broaden our activities in the online classifieds sector,
we acquired 100 % of the shares in Evenbase Recruit-
ment Ltd., Havant, Great Britain via the StepStone
Group at the end of October 2014. Evenbase Recruit-
ment Ltd. operates the job website jobsite.co.uk along
107
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
amount of € 6.1 million and to 2014 consolidated net
income in the amount of € 1.1 million. If Evenbase had
already been fully consolidated on January 1, 2014,
Evenbase would have contributed to 2014 consolidated
revenues in the amount of € 38.7 million and to 2014
consolidated net income in the amount of € 7.7 million.
The other business combinations finalized in the year
2014 included the acquisition of Skapiec Sp. z o.o. (80 %)
and Opineo Sp. z o.o. (80 %), Vertical Media GmbH
(88 %), ImmoSolve GmbH (51 %), MeinProspekt GmbH
(100 %), WEBIMM SAS (65 %) and Blikk Kft. 100 %).
These acquisitions were generally carried out in the con-
text of our strategy to become the leading digital pub-
lisher and individually had no major effects on the finan-
cial position, liquidity, and financial performance of the
Axel Springer Group during the 2014 financial year.
In addition to the purchase prices paid in 2014, the ac-
quisition costs of these company acquisitions totaling
€ 40.3 million, also contained contingent purchase price
liabilities in the amount of € 5.7 million. The acquisition-
related expenses recorded in other operating expenses
for the year 2014 amounted to € 1.5 million.
The contingent consideration resulted from option rights
for the acquisition of the remaining shares in the compa-
nies. They were measured on the basis of the current fair
value of the options on the acquisition date. The current
fair value predominantly depends on earnings perfor-
mance of the acquired companies in the years prior to
possible exercise dates of the options.
Based on the purchase price allocations, the cumulative
acquisition costs were allocated to the purchased assets
and liabilities at the respective acquisition dates as fol-
lows:
with brands such as CityJobs.com and eMed-
careers.com.
The acquisition costs amounted to € 114.4 million and
consisted of the purchase price paid in 2014. The acqui-
sition-related expenses recorded in other operating
expenses of the reporting year 2014 amounted to
€ 2.3 million.
The acquisition costs were assigned to the purchased
assets and liabilities based on the preliminary purchase
price allocation as of December 31, 2014 as of the ac-
quisition date as follows:
€ millions
Intangible assets
Property, plant, and equipment
Trade receivables
Other assets
Provisions and liabilities
Trade payables
Deferred tax liabilities
Net assets
Acquisition cost (preliminary)
Goodwill (preliminary)
Carrying
amount after
acquisition
56.5
1.3
4.3
7.2
– 4.3
– 1.7
– 10.7
52.6
114.4
61.8
Of the intangible assets acquired, intangible assets with
carrying amounts of € 32.6 million have indefinite useful
lives. The non-tax-deductible goodwill is above all at-
tributable to inseparable values such as employee exper-
tise, expected synergy effects from the integration and
the strategic advantages resulting from the leading mar-
ket position of the acquired company, and was allocated
to the Classified Ad Models segment.
The gross amount of the acquired trade account receiv-
ables was € 4.4 million. Corresponding valuation allow-
ances in the amount of € 0.1 million were recorded.
Since first inclusion as of October 31, 2014 Evenbase
contributed to 2014 consolidated revenues in the
108
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
€ millions
Intangible assets
Property, plant, and equipment
Non-current financial assets
Trade receivables
Other assets
Cash and cash equivalents
Provisions and liabilities
Deferred tax liabilities
Net assets
Share of non-controlling interests in net assets
Acquisition cost
Goodwill
Carrying
amount after
acquisition
25.1
0.2
0.0
2.1
1.1
4.0
– 3.6
– 6.1
22.9
5.2
40.3
22.6
Of the intangible assets acquired in these acquisitions,
intangible assets with carrying amounts of € 14.8 million
have indefinite useful lives. The non-tax-deductible
goodwill is above all attributable to inseparable values
such as employee expertise, expected synergy effects
from the integration and is assigned to the Paid Models
(€ 8.8 million), Marketing Models (€ 8.7 million), and
Classified Ad Models (€ 5.2 million) segments.
Since their respective initial consolidation, these compa-
nies have contributed to 2014 consolidated revenues in
the amount of € 8.6 million and to 2014 consolidated net
income in the amount of € 1.5 million. If the acquisitions
had already been finalized on January 1, 2014, 2014
consolidated revenues would have increased by
€ 13.9 million, and 2014 consolidated net income by
€ 2.8 million.
In December 2014, Axel Springer increased its share in
Axel Springer Digital Classifieds GmbH from 70 % to
85 % with a cash payment in the amount of € 446 million.
The proportion of the net assets of Axel Springer Digital
Classifieds which is attributable to non-controlling share-
holders was reduced by € 85.0 million. The equity of
Axel Springer SE which is attributable to shareholders
was reduced by € 362.6 million, and the other accumu-
lated equity was increased by € 1.5 million.
Additional transactions carried out in fiscal year 2014, as
well as finalizations of purchase price allocations arising
from company acquisitions in the previous year, had no
material effects individually or collectively on the financial
position, liquidity, and financial performance of the group.
(d) Discontinued operations
In the previous year, the German regional newspapers, TV
program guides, and women’s magazines as well as the
business activities and investments held by Ringier Axel
Springer Media in the Czech Republic, were shown sepa-
rately as discontinued operations.
The sale of the Group’s German regional newspapers,
TV program guides, and women’s magazines to FUNKE
Mediengruppe was finalized on April 30, 2014, with
economic effect as of January 1, 2014. Before the con-
tractually agreed purchase price adjustment the pur-
chase price was € 920 million. After taking the purchase
price adjustment into consideration, a purchase price of
€ 876.5 million was taken as a basis which, inter alia,
takes into account that the purchaser has assumed net
liabilities. The purchase price, amounting to
€ 632.9 million, was paid in cash; for the balance,
FUNKE Mediengruppe assumed a multi-year, subordi-
nated loan obligation vis-à-vis Axel Springer SE in the
amount of € 243.6 million. The tax burden associated
with the sale amounted to € 248.3 million.
In order to fulfill a proviso imposed in connection with
merger control law, FUNKE Mediengruppe sold some of
the TV program guides acquired under the transaction,
as well as some of its own TV program guides, to a
company of Klambt Mediengruppe. To assist in the
financing of this acquisition, Axel Springer SE guaranteed
a bank loan taken out by the Klambt Mediengruppe
company, up to an amount of € 51.0 million (value as of
December 31, 2015: € 34.6 million).
In addition, Ringier Axel Springer Media AG has sold its
business activities and investments in
the Czech Republic to two Czech entrepreneurs effective
with approval from the Czech cartel authorities on April
30, 2014. These activities included the leading mass-
circulation daily BLESK and the leading news magazine
REFLEX, as well as automotive magazines and women’s
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Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
magazines. The purchase price that was based on a
company value of € 170 million amounted to
€ 196.5 million and reflected particularly the net assets
transferred to the buyer.
The assets and liabilities of the sold operations as of
31 December 2014 are shown in the following table:
€ millions
Goodwill
Other intangible assets
Property, plant, and equipment
Non-current financial assets
Deferred tax assets
Inventories
Trade receivables
Other assets
Cash and cash equivalents
Provisions for pensions
Other provisions
Trade payables
Other liabilities
Deferred tax liabilities
Disposal net assets
Cumulative translation differences
Net realizable value after deduction of contractual
guarantees
Gain on disposal before taxes
Income taxes
Gain on disposal after taxes
The results of the discontinued operations are as follows:
Mio. €
Revenues
Other operating income
Expenses
Operating result from discontinued
operations (before taxes)
Income taxes
Operating result from discontinued
operations (after taxes)
Impairment loss due to remeasurement
to fair value less costs to sell
Gain on disposal of discontinued
operations before taxes
Taxes on the gain on disposal
Gain on disposal of discontinued
operations after taxes
Income from discontinued operations
Thereof attributable to shareholders of
Axel Springer SE
Thereof attributable to non-controlling
interests
2015
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2014
181.3
2.8
– 155.7
28.4
– 9.1
19.3
0.0
4.1
897.4
– 1.3
– 248.3
2.8
2.8
649.2
668.4
2.8
630.7
0.0
37.7
The following table shows the cash inflows and cash
outflows attributed to the discontinued operations:
2014
41.1
86.5
21.5
5.9
3.2
2.5
13.2
15.1
38.1
– 17.2
– 6.4
– 8.5
– 40.5
– 18.0
136.4
6.6
1,040.4
897.4
– 248.3
649.2
€ millions
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
2015
0.0
– 8.1
0.0
2014
21.5
533.5
0.0
(e) Translation of separate financial statements
denominated in foreign currency
Assets and liabilities of subsidiaries for which the func-
tional currency is not the euro have been translated at
the exchange rate in effect on the reporting date. Good-
wills and fair value adjustments of assets and liabilities
related to the acquisition of companies outside the Euro-
pean Monetary Union are assigned to the acquired com-
pany and accordingly translated at the exchange rate in
effect on the reporting date.
110
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Items of the income statement of these subsidiaries have
been translated at the weighted average exchange rate
for the year. Equity components have been translated at
the historical exchange rate at the date of origination.
Foreign exchange differences resulting from the transla-
tion have been recognized within accumulated other
comprehensive income and/or non-controlling interests.
The exchange rates to the euro of foreign currencies that
are significant for the Axel Springer Group underwent the
following changes in the past year:
1 € in foreign
currency
Average price
Exchange rate on
balance sheet date
Polish zloty
Swiss franc
US-Dollar
Hungarian
forint
2015
2014 12/31/2015 12/31/2014
4.18
1.07
1.11
4.18
1.21
1.33
4.27
1.08
1.09
4.32
1.20
1.22
309.90
308.60
315.46
315.31
British pound
0.72
0.81
0.73
0.78
(3) Explanation of significant accounting and
valuation methods
(a) Basic Principles
The accounting and valuation principles applied uniformly
across the Axel Springer Group in fiscal year 2015 are
basically the same as those applied in the previous year.
For information on the accounting and valuation methods
resulting from new or revised IFRS Standards and IFRS
IC Interpretations, please refer to note (3q).
(b) Recognition of income and expenses
The Axel Springer Group mainly generates circulation
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 the economic benefits will
flow to the enterprise. Revenues are stated net of any
discounts allowed. Revenues from services rendered
over a certain period in an indefinite number of transac-
tions are recognized on a straight-line basis over the
contractual term.
Circulation revenues encompass the sales of newspa-
pers and magazines to retailers, wholesalers, and sub-
scribers. Revenue is not recognized for that portion of
products sold, which can be expected, on the basis of
historical experience, to be returned. Additionally, circula-
tion revenues comprise the sale of digital applications
and formats.
The advertising revenues encompass revenues from
sales of advertising spaces in the published newspapers
and magazines and the revenues generated in the cate-
gories of display, affiliate marketing, online classifieds,
and search.
Where 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 corre-
sponding commission income or proportion of revenue
accruing to the Axel Springer Group are recognized as
revenues.
Offers that contain multiple service components are
separated for purposes of revenue recognition when the
delivered components have an independent benefit and
the market values of goods not yet delivered or services
not yet performed can be determined objectively. The
total remuneration for these offers is distributed in princi-
ple among the individual service components in such a
way that the service components still to be provided are
allocated remuneration in the amount of their fair value,
and then the service components already provided are
allocated the remaining remuneration in proportion to
their fair values.
Revenues from barter transactions are recognized if the
goods or 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 transac-
tions cannot be measured reliably, the fair value is de-
termined on the basis of the service rendered.
111
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Other income is recognized when the future inflow of
economic benefits from the transaction can be meas-
ured 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.
(c) Intangible assets
Internally generated intangible assets are measured as
the sum of costs incurred in the development phase
from the time when the technical and economic feasibil-
ity has been demonstrated until the time when the intan-
gible asset has been completed. The capitalized produc-
tion costs include all costs that are directly or indirectly
allocable to the development phase. Costs for the self-
development of websites are capitalized only when the
website directly serves the generation of revenues. Pur-
chased intangible assets are measured at cost.
Internally generated and purchased intangible assets that
have a determinable useful life are 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:
Software
Licenses
Supply rights
Internet platform
Customer relationships
Useful life
in years
3 – 8
3 – 10
3 – 6
3 – 8
3 – 17
Intangible assets with an indefinite useful life, which in-
clude 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 re-
strictions.
(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 recog-
nized as other operating income or expenses.
Leased assets whose economic benefits are attributable
to Axel Springer are recognized 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 over the minimum contract
term, taking any existing residual value into consideration.
When it is reasonably certain that ownership will pass to
Axel Springer at the end of the lease period, such assets
are depreciated over their useful lives. The present value
of the payment obligations associated with the minimum
future lease payments is recognized as a liability.
For depreciation purposes, the following useful lives are
applied for property, plant, and equipment:
Buildings
Leased buildings
Leasehold improvements
Printing machines
Editing systems
Other operational and business equipment
Useful life
in years
30 – 50
19 – 20
5 – 15
12 – 20
3 – 7
3 – 14
Capital investment subsidies and bonuses granted by
the government are recognized when it is reasonably
certain that the subsidies will be granted and the related
terms and conditions will be fulfilled. Bonuses and subsi-
dies granted for the acquisition or construction of prop-
erty, plant and equipment are recognized in a deferred
112
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
income item within other liabilities. In subsequent periods,
the deferred income item is released and recognized as
income over the useful life of the corresponding assets.
loss is allocated pro rata to the carrying amounts of the
other assets of the reporting unit.
(e) Investment property
Investment property intended for lease to third parties is
measured at amortized cost. Such property is depreciat-
ed over a useful life of 50 years using the straight-line
method. For leased assets whose economic benefits are
attributable to Axel Springer, see note (3d).
(f) Recognition of impairment losses in intangible
assets, in property, plant, and equipment, and
in investment property
Impairment losses are recognized in intangible assets, in
property, plant, and equipment, and in investment prop-
erty when as a result of certain events or changed cir-
cumstances, the carrying amount of the assets is no
longer covered by the recoverable amount, i.e. the higher
of the fair value less cost of disposal (“net realizable
value”), and the value in use. If it is not possible to de-
termine the recoverable amount of an individual asset,
the determination of the recoverable amount is carried
out at the cash generating unit level, or in the group of
cash generating units (each one a “reporting unit”) to
which the asset belongs.
Goodwill and intangibles with indefinite useful lives which
are acquired in the context of business combinations,
are not subject to amortization, and shall be tested at
least once annually for impairment. In order to carry out
the impairment tests, these assets are assigned to those
reporting units that can be expected to profit from the
synergies of the business combinations. 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 digital media are summed up
in a single reporting unit.
If the carrying amount exceeds the recoverable amount,
this results in an impairment loss. For reporting units, the
goodwill is initially reduced, and an additional impairment
As a basic principle, the recoverable amount is initially
determined based on the value in use. The net realizable
value is additionally determined when the value in use is
less than the carrying amount. The net realizable value
corresponds to the amount reduced by the selling costs,
which can be achieved on commercial terms through the
sale of an asset or reporting unit. As quoted prices are
not observable, as a general rule, the net realizable value
is determined as the present value of future cash flows,
which are derived from the medium-term planning and
from the point of view of an independent third party.
Thus, the valuation is based on unobservable input fac-
tors (Level 3, see note (3g)).
The determination of the value in use is taking into con-
sideration the further use within the Group and is based
on the estimated future cash flows, which are derived
from the medium-term planning. Expenses of the
group’s central operations are also taken into account.
Basically, the planning horizon for the medium-term
planning is five years. However, the values in use are
primarily determined 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 medi-
um-term planning, and on the discount rate. The cash
flows to be received after the five-year period are extrap-
olated on the assumption of a growth rate, which is
derived from the assumed average market or industry
growth rate of the reporting unit.
The discount rates for every business unit are deter-
mined with reference to the weighted average costs of
capital and costs of debt of comparable companies. In
this respect, country-specific risk premiums and tax
rates are taken into account.
Estimation uncertainties arise in the following assump-
tions applied in the calculations:
Medium-term planning: The medium-term planning is
determined on the basis of past historical values, and
113
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
factors in business-segment-specific expectations
about future market growth. Here, we assume that
cash flows in the electronic media sector will usually
exhibit higher growth rates than in the print sector.
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 ex-
pired.
Discount rates: Based on the average weighted capi-
tal costs of the sector in question, the discount rates
of the reporting units also consider country-specific
risks, which reflect the current market estimates.
For financial assets and financial liabilities which need to
be measured at fair value, we apply the following valua-
tion hierarchy. Hereby, the input factors used in the
valuation models are categorized into three levels:
Growth rates: The growth rates are determined on the
basis of published market research reports for the
sectors in question. In estimating the long-term
growth rates with regard to the determination of the
value in use, due consideration was given to the
compensatory effects between the different business
lines, based on the adopted strategy of the Group.
Impairment losses are reversed when the recoverable
amount exceeds the carrying amount of an asset or a
reporting unit, due to changes in the estimates upon
which the measurement is based. The reversal is limited
to the amount that would have resulted if previous im-
pairment losses had not been recognized. A recognized
impairment loss in goodwill is never reversed.
(g) Financial assets and liabilities
Financial assets are mainly composed of cash and cash
equivalents, trade receivables, receivables from related
parties, loans, investments, securities, and financial de-
rivatives with positive market values. Financial liabilities
are mainly composed of trade payables, liabilities due to
related parties, liabilities due to banks, promissory notes,
contingent consideration, and financial derivatives with
negative market values.
The initial recognition and derecognition of financial in-
struments coincide with the settlement dates of custom-
ary market purchases and sales of financial assets.
A financial asset is derecognized when the contractual
rights to the cash flows from the financial asset have
expired or have been transferred to third parties, or when
the Group has assumed a contractual obligation to pay
the cash flows to a third party, under which the risks and
Level 1: Quoted (unadjusted) prices in active markets
for identical assets or liabilities (e.g., stock market
prices).
Level 2: Input factors other than prices quoted in
Level 1, which are observable for the asset or the lia-
bility, either directly or indirectly (e.g., interest yield
curves, forward rates).
Level 3: Input factors which are not observable on a
market for the asset or the liability (e.g. estimated fu-
ture results)
When determining the fair value, the application of rele-
vant and observable input factors is given high priority,
whereas the application of non-observable input factors
is given less priority. The classification of the valuation
models into the respective valuation hierarchy levels is
monitored at the end of each reporting period.
Investments and securities
Investments that have not been consolidated or ac-
counted for using the equity method in the consolidated
financial statements, as well as securities, 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 invest-
ment income. We assume that the fair value of invest-
ments and securities is not reliably measurable when
either material valuation differences appear in estimating
fair values based on projections and scenarios, or when
the likelihood of such projections and scenarios cannot
114
Annual Report 2015
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Consolidated Financial Statements
Notes to the Consolidated Financial Statements
be reliably determined. 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 profit or loss
until the corresponding non-current financial assets are
sold or an impairment loss is recognized.
The carrying amounts of investments and securities are
reviewed on every reporting date to determine whether
there are objective indications of an impairment. This is
ensured, for example, if the issuer has considerable
financial difficulties. If an impairment is found to exist, an
impairment loss is recognized in profit or loss.
Loans, receivables, and other financial assets
Upon initial recognition, loans, receivables, and other
financial assets are measured at fair value plus transac-
tion 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 receiv-
able may not be fully collectible. Such an indication might
be the insolvency or other considerable financial prob-
lems 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 receiv-
ables 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.
Financial derivatives
Financial derivatives are utilized to hedge against curren-
cy and interest rate risks that have an influence on future
cash flows. These are stated at their current market
value. The valuation is based on observable parameters,
using recognized valuation methods, and is particularly
influenced by the development of forward rates or yield
curves. If the conditions for the application of hedge
accounting are met, changes in the fair values, including
the tax effects, are recognized directly in equity as ac-
cumulated other comprehensive income. The amounts
recognized in accumulated other comprehensive income
are recycled when the underlying transaction is recog-
nized 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. Furthermore, financial
derivatives are used to cover the risk of impairments of
investments and securities. When the underlying financial
assets are recognized at amortized costs because their
fair values are not reliably measurable, the financial deriv-
ative is recognized at amortized costs as well.
Contingent consideration
Contingent consideration arising from options written
over non-controlling interests and earn-out agreements
in connection with business combinations and the acqui-
sition of non-controlling interests are recognized at fair
value. To the extent it can be reliably measured, this
value is derived from the estimated profit trends of the
acquired companies in the years prior to the possible
exercise dates of the options or the payment dates of
the earn-outs. In the subsequent periods, changes in the
fair value are recognized immediately in income. The
discount rates are determined on the basis of the
Group’s cost of debt.
The earnings used as a basis for measurement are gen-
erally EBITDA figures adjusted for material non-recurring
effects.
Other financial liabilities
Upon initial recognition, other non-derivative financial
liabilities are measured at fair value less transaction costs.
In subsequent periods, they are principally measured at
amortized cost using the effective interest method. Liabil-
ities arising from put options written over non-controlling
interests, which are not recognized as contingent con-
sideration, are measured at the present value of the
redemption amount through profit or loss.
115
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(h) Inventories
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 reporting 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 fin-
ished goods and services less remaining costs of com-
pletion. Impairments are reversed whenever the reasons
justifying an earlier write-down no longer exist.
(i) Assets held for sale and discontinued operations
Assets are classified as for sale when their disposal has
been initiated, the sale of such is highly probable and the
asset or disposal group is available for immediate sale in
its present condition. The non-current assets held for
sale are measured at the lower of the carrying amount or
the fair value less costs to sell. Depreciation is no longer
applied to these assets. Liabilities that are held in con-
nection with assets held for sale are disclosed likewise
separately in the balance sheet as a current item.
Discontinued operations represent a material geograph-
ical or operational line of business of the Group that is
available for sale.
The results from continued operations in the fiscal year
and the prior year are shown in the income statement.
The results from discontinued operations are shown
separately. Cash inflows and cash outflows from discon-
tinued operations are shown separately in the notes to
the consolidated financial statements. The information in
the notes relates to the continued operations of the
Group.
(j) Pension provisions
Pension obligations under defined benefit plans are
determined using the projected unit credit method under
which future changes in compensation and benefits are
taken into account. In order to calculate the pension
provisions, the present value of the obligations is netted
against the fair value of the plan assets.
The expected life spans of the participants are deter-
mined with reference to the country-specific recognized
actuarial tables. The present value of the defined benefit
commitments is determined by discounting the estimat-
ed future cash outflows. The discount rate applied for
this purpose is determined with reference to high-quality
AA-rated corporate bonds that match the underlying
pension obligations with respect to currency and maturi-
ty. If corporate bonds with matching terms do not exist,
then the yields of these bonds at the balance sheet date
are adjusted along the yield curve for fixed-interest gov-
ernment bonds using a constant spread over the term of
the underlying pension obligations.
The return underlying the measurement of the plan as-
sets is identical to the discount rate for defined benefit
commitments.
Actuarial gains and losses resulting from changes in
actuarial parameters are offset against accumulated
other comprehensive income without affecting net in-
come.
(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 reporting date by
application of appropriate market rates of interest. Provi-
sions are recognized for restructuring expenses only
when the intended measures have been sufficiently con-
cretized and announced on or before the reporting 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
116
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
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 prob-
able that the differences will reverse or the tax loss carry-
forwards can be utilized. Deferred tax assets are recog-
nized 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 de-
ferred taxes are based on the income taxes levied 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.
(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 compensa-
tion 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 at the reporting date
(in case of cash-settled programs). The fair values are
determined on the basis of generally accepted option
pricing models. The corresponding amount is recognized
in the additional paid-in capital (in the case of equity-
settled programs) or as provisions/liabilities (in the case
of cash-settled programs). Additions to liabilities or provi-
sions are recognized in personnel expenses; reversals
are accounted for in other operating income.
(o) 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
reporting date. Any foreign exchange gains or losses
resulting from such translations are recognized in income.
(p) Estimates and assumptions
The preparation of financial statements requires esti-
mates and assumptions, as well as judgements, which
can have an impact on the amount and presentation of
assets and liabilities, income and expenses and contin-
gent liabilities. Estimates and assumptions are regularly
reviewed and adjusted if necessary. Nevertheless, they
may differ from the actual values. Estimates and as-
sumptions which are affected by uncertainty are associ-
ated in particular with impairment testing of goodwill and
intangible assets with indefinite useful lives (see note (3f)),
purchase price allocations (see note (2c)) and assessing
contingent consideration (see note (3g)), setting actuarial
parameters in the context of the valuation of pension
obligations (see note (3j)), determining the amount of
deferred tax assets to be capitalized (see note (3l)), de-
termining fair values of financial assets (see note (3g)),
accounting for other provisions (see note (3k)), assessing
share-based compensation programs (see note (3n)),
and the determination of the useful lives of intangible
assets (see note (3c)) and property (see note (3d)). Infor-
mation concerning the carrying amounts, which are
based on estimates and assumptions, can be found in
the comments on the specific line items.
(q) New accounting standards
In fiscal year 2015, no material changes resulted for Axel
Springer from IFRS Standards or IFRIC Interpretations to
be applied for the first time.
The following IFRSs have already been published, but
not yet applied.
With the publication of the final version of IFRS 9 “Finan-
cial Instruments” in July 2014, the IASB completed its
project for replacing IAS 39 “Financial Instruments:
Recognition and Measurement”. IFRS 9 provides a
standardized approach for classification and evaluation
of financial assets and liabilities which is primarily based
on the company's business model and the cash flows of
the financial instrument. Furthermore, IFRS 9 contains a
117
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
new depreciation model which also demands the record-
ing of expected losses in addition to incurred losses.
Finally, IFRS 9 also contains new guidelines for the use of
hedge accounting, targeted in particular at better illustra-
tion of the risk management activities of a company and
the monitoring of non-financial risks. IFRS 9 is to be
applied to fiscal years starting on or after Janu-
ary 1, 2018. Early application is permitted. The EU en-
dorsement of IFRS 9 is still pending. Regarding the ef-
fects of the application of the new standard, we currently
do not expect any major changes in the presentation and
recognition of financial assets and liabilities.
In May 2014, the IASB published the new standard for
revenue recognition, IFRS 15 “Revenue from Contracts
with Customers”, which will completely replace the exist-
ing regulations for the recognition of revenue, including
related interpretations, in accordance with IAS 18 “Reve-
nue” and IAS 11 “Construction Contracts”. Consequently,
revenues will be recognized in the future, when the cus-
tomer obtains control over the agreed goods and ser-
vices and can derive benefits from these. Revenues are
recognized in the amount of the consideration that the
company will presumably receive. The new standard
provides a five step process, in which the volume of
sales and the time or the period of implementation can
be determined. The model is as follows: Identification of
the customer contract, identification of the individual
performance obligations, determination of the transaction
price, allocation of the transaction price to the separate
contractual obligations, and the realization of revenue
when individual contractual obligations are fulfilled. Fur-
thermore, the new standard requires future qualitative
and quantitative disclosures to go far beyond the current
regulations. IFRS 15 is to be applied to fiscal years start-
ing on or after January 1, 2018. Early application is per-
mitted. The EU endorsement of IFRS 15 is still pending.
We are currently evaluating the effects that the applica-
tion of the new standard might have on the accounting
for revenues.
In January 2016, IASB published IFRS 16, “Leases”.
IFRS 16 replaces IAS 17 “Leases” and the associated
interpretations. According to the new regulation, lessees
are required to account for all leases in the form of a right
of use, and a corresponding leasing liability. A lease
contract exists if the fulfillment of the contract depends
on the use of an identifiable asset, and the customer
simultaneously acquires control of this asset. The
presentation in the income statement is essentially a
finance lease transaction, so that the right of use usually
depreciates on a straight-line basis, and the leasing
liability is updated using the effective interest method.
Leases with a total term of a maximum of twelve months,
and leases of so-called low-value assets (purchase price
of up to USD 5,000) are excluded from this principle. In
such cases, the lessee has the option of selecting an
accounting method which is similar to that of the previ-
ous operating lease. IFRS 16 is to be applied to fiscal
years starting on or after January 1, 2019. Early applica-
tion is permitted, as long as IFRS 15 has already been
applied. The EU endorsement of IFRS 16 is still pending.
We are currently evaluating the effects that the applica-
tion of the new standard might have on the accounting
for leases.
Furthermore, IASB and IFRS IC have published addition-
al pronouncements that have had, or will have, no mate-
rial influence on our consolidated financial statements.
118
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the consolidated statement of financial position
(4) Intangible assets
The changes in intangible assets were as follows:
€ millions
Acquisition or production cost
Balance as of January 1, 2014
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Balance as of December 31, 2014
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Balance as of December 31, 2015
Depreciation, amortization, and impairments
Balance as of January 1, 2014
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Balance as of December 31, 2014
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Balance as of December 31, 2015
Carrying amounts
Balance as of December 31, 2015
Balance as of December 31, 2014
1) Regarding the adjustment of the prior-year figures see note (4a) below.
119
Purchased
rights and
licenses
Internally
generated
rights
Goodwill1)
Total
1,354.3
293.2
– 2.7
0.3
36.3
– 6.8
0.1
1,674.7
446.0
– 19.9
36.6
44.9
– 10.4
– 159.8
2,012.1
340.0
0.4
– 2.5
1.1
95.2
– 5.1
6.0
435.0
0.0
– 4.2
7.9
104.8
– 9.4
– 64.8
469.2
130.6
1,521.2
3,006.1
10.7
– 6.2
1.3
23.2
– 0.4
0.8
159.9
27.0
– 13.0
3.2
39.4
– 0.7
– 7.1
208.7
60.5
0.0
– 6.2
0.8
35.4
– 0.2
– 5.4
84.8
0.0
408.6
– 4.3
1.9
0.0
0.0
0.0
1,927.4
476.9
– 67.2
37.5
0.0
– 0.3
– 96.4
2,277.9
43.0
0.0
– 0.5
– 0.4
31.1
0.0
– 0.1
73.2
0.0
– 11.1
– 22.4
1.7
36.9
– 0.7
– 8.3
103.4
1.7
0.0
0.0
– 23.3
29.1
712.5
– 13.2
3.5
59.4
– 7.1
0.9
3,762.0
949.9
– 100.1
77.3
84.3
– 11.4
– 263.3
4,498.7
443.6
0.4
– 9.2
1.5
161.8
– 5.4
0.5
593.0
0.0
– 37.8
11.3
141.6
– 10.0
– 96.4
601.7
1,542.9
1,239.7
105.4
75.1
2,248.8
1,854.2
3,897.0
3,169.0
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(a) Retrospective adjustment of goodwills
In the reporting period, with respect to business combi-
nations that were directly or indirectly carried out through
group companies with non-controlling interests, we have
disclosed in the reporting period previously unrecorded
goodwills attributable to these non-controlling interests in
our consolidated statement of financial position. Prior-
year figures were adjusted accordingly. With respect to
this issue, goodwills increased by € 153.3 million (as of
December 31, 2014: by € 150.8 million; as of January 1,
2014: by € 151.0 million). Correspondingly, the portion
of non-controlling interests within equity increased by
€ 113.4 million (as of December 31, 2014: by
€ 130.8 million; as of January 1, 2014: by
€ 151.0 million). Furthermore, the difference to be rec-
orded directly within accumulated retained earnings –
stemming from the acquisition of 15% respectively at the
end of 2014 and at the end of 2015 regarding the shares
in the ASDC Group – increased by € 39.9 million (as of
December 31, 2014: by € 19.9 million).
(b) Further disclosures concerning intangible assets
The purchased rights and licenses mainly comprised title
rights, trademarks, and customer relationships. The
internally generated intangible assets mainly consisted of
software solutions and websites.
The reclassifications consisted almost exclusively of the
classification as assets held for sale (see note (2c)).
In the following tables, we disclose the allocation of goodwills and the purchased rights and licenses within the intangi-
ble assets with indefinite useful lives for reporting units, as well as the discount rates and growth rates used for impair-
ment testing:
€ millions
Goodwill
Other intangible assets with
indefinite useful life
2015
SeLoger
RASM
StepStone
Business Insider
AuFeminin
Immowelt/Immonet
Yad2
Zanox
Others
Total
Thereof Classified Ad
Models
Thereof Paid Models
471.5
198.3
242.3
230.4
166.4
142.1
132.0
157.0
509.0
2,249.0
1,258.2
516.9
Thereof Marketing Models
473.3
Discount rate
(before tax)
Discount rate
(after tax) Growth rate
10.8%
9.2%
10.9%
10.4%
11.7%
9.2%
10.6%
11.1%
8.0%
7.9%
8.8%
8.0%
8.8%
7.3%
8.5%
9.0%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
7.6% – 11.1%
5.8% – 8.3%
1.5% – 2.5%
Total
603.2
409.1
392.4
391.4
221.1
197.8
186.0
184.2
682.4
3,267.7
1,801.2
892.5
573.4
131.8
210.8
150.1
161.0
54.7
55.8
54.0
27.2
173.4
1,018.7
543.0
375.6
100.1
120
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
€ millions
Goodwill1)
Other intangible assets with
indefinite useful life
2014
SeLoger
RASM
StepStone
AuFeminin
Zanox
Yad2
Immonet
Others
Total
Thereof Classified Ad
Models
Thereof Paid Models
Thereof Marketing
Models
465.6
187.2
226.6
162.7
153.4
107.5
11.9
539.3
1,854.2
1,051.6
345.3
456.8
Discount rate
(before tax)
Discount rate
(after tax) Growth rate
9.4%
9.7%
8.7%
9.4%
10.4%
9.3%
8.4%
6.8%
8.4%
6.8%
6.8%
8.7%
7.3%
6.5%
1.5%
2.5%
1.5%
1.5%
2.5%
1.5%
1.5%
8.2% – 9.8%
6.3% – 7.0%
1.5% - 4.0%
Total
596.1
391.6
368.8
216.8
180.6
154.4
16.0
740.8
2,665.2
1,477.0
634.7
130.5
204.4
142.3
54.0
27.2
47.0
4.1
201.5
810.9
425.4
289.4
96.1
552.9
1) Prior-year figures were adjusted, see note (4a).
The changes in goodwills of the major reporting units were as follows:
12/31/20131)
Initial
consoli-
dation Impairment
Currency
effects
Other
12/31/20141)
€
millions
SeLoger
StepStone
Business
Insider
RASM
AuFeminin
Zanox
Immowelt/
Immonet
Yad2
Total
465.3
160.4
0.0
186.8
117.3
177.7
0.3
61.8
0.0
6.8
44.9
0.0
8.0
0.0
3.9
108.2
0.0
0.0
0.0
0.0
0.0
– 28.2
0.0
0.0
1,115.4
225.9
--- 28.2
0.0
3.8
0.0
– 6.7
0.5
3.6
0.0
– 0.7
0.5
1) Prior-year figures were adjusted, see note (4a).
Initial
consoli-
dation
5.9
8.1
465.6
226.6
0.0
227.8
187.2
162.7
153.4
11.9
107.5
1,314.9
10.3
22.8
0.0
130.1
11.2
416.2
Deconsoli-
dation
Currency
effects 12/31/2015
0.0
0.0
0.0
– 0.5
– 20.1
0.0
0.0
0.0
--- 20.6
0.0
7.6
2.6
1.3
1.0
3.6
0.0
13.3
29.4
471.5
242.3
230.4
198.3
166.4
157.0
142.1
132.0
1,740.0
0.0
0.6
0.0
0.3
0.0
0.3
0.0
0.0
1.2
121
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
In addition to the discount rates and growth rates stated
above, the impairment tests depend upon the medium-
term planning of the reporting units.
Material assumptions in the context of the medium-term
planning of SeLoger relate to the assumption of a slight
recovery in the online real estate market in France,
strengthening brand awareness in a competitive market
environment, focusing marketing activities on the goal of
increasing average revenue per customer, improving
market penetration particularly in regions outside of Paris,
and accelerating growth in vertical niche portals by in-
creasing market share.
In the medium-term planning of Ringier Axel Springer
Media, we assume that our digital content offerings will
increasingly and sustainably participicate in the structural
shift from print to digital channels and that our digital
business models will gain in importance in the areas of
paid-content models and classified ad models in the
long-term. However, the revenue streams in sales and in
the print advertising market will come under increasing
pressure in the coming years. It will be possible to at
least partly compensate for the declining circulation
figures by price increases. With a strict cost manage-
ment in the print business it shall be possible to largely
maintain profitability.
In the medium-term planning of the StepStone Group,
we assume that the anticipated development of the
economy will have a positive impact on the labor market.
The assumptions made include rising sales revenues in
our European and South African core markets and in our
other markets in Africa and Latin America, as well as
further strict cost management in order to maintain the
high level of return of the past years. In particular, by the
further development of the product range and the ex-
pansion of the system landscape, the market position
should be expanded and strengthened.
fee-based market research offering (“BI Intelligence”) and
the expansion into new international markets. The main
revenue streams are those from advertising. In order to
reasonably consider in the cashflow projections the
period of developing the company acquired in the report-
ing period to stable conditions, we have used a detailed
planning period of ten years instead of the usually ap-
plied five years period. We imply in our planning assump-
tions that Business Insider is well-positioned with its
competencies in Video and Mobile and in native and
programmatic advertising formats and will benefit from
the growth in the US advertising market.
The medium-term planning of the Aufeminin Group is
based on the assumption that the market position in the
core markets in Europe and in the USA will be solidified.
The assumptions made contain an increase in revenues
as well as an increase in income at a mostly constant
level of return. The subsidiary My Little Paris contributes
to this development with the expansion into further re-
gional markets and with the development of new prod-
ucts. In the fast-moving US online advertising market,
the subsidiary Livingly Media will extend its market posi-
tion by further developing its leading competencies in
programmatic advertising. The websites of Aufeminin are
looking at opening up new revenue streams in the fields
of programmatic advertising, e-commerce and moving-
image advertising formats.
The medium-term planning of the Zanox Group is based
on the assumption that the market position in the core
markets in Germany and in Western Europe will be fur-
ther extended by increasing the revenues in the core
markets through – inter alia – a continuous expansion of
the product portfolio offered to the advertisers and
through loyalty measures regarding the attached pub-
lishers Through optimization of the infrastructure, in the
medium term decreasing costs with regard to the – inter
alia – IT are envisaged.
The medium-term planning of Business Insider is based
on the assumption that the revenues will grow signifi-
cantly. This growth shall predominantly be triggered by
the further development of the Business Insider brand
portfolio (e.g. Tech Insider, Insider), the extension of the
The medium-term planning of Yad2 is based on the
assumption of an overall stable political environment in
Israel with moderate macroeconomic growth rates. Yad2
thereby benefits from superior brand awareness and a
sound market position. It is expected that particularly
122
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
ongoing growth in the real estate market will contribute
to increasing revenues. Further growth is anticipated
from the newly acquired job portal Drushim, which shall
additionally benefit from the synergies with Yad2.
The medium-term planning of the Immowelt Group is
based on the assumption of an ongoing successful
combining of Immowelt’s and Immonet’s customers
within the process of merging these two companies in
the year 2015. For this, a stable status on the German
real estate market and ongoing competition with Immo-
bilienScout24 is assumed. In order to strengthen brand
awareness, further investments in marketing measures
are planned for the coming years.
The recoverable amount was determined as the value in
use for all reporting units; as in the previous year, solely
for the reporting units Ringier Axel Springer Media and
Zanox the fair value less costs to sell was calculated
additionally.
2014
Ringier Axel
Springer Media
Zanox
Axel Springer Media) would reduce to zero if the material
measurement parameters would change as follows:
Increase of
discount
rate
(before
taxes) to
Increase
of
discount
rate (after
taxes) to
Reduction
of growth
rate to
Reduction
of cash
flow in the
fifth year of
medium-
term
planning by
11.9%
9.6%
1.8%
– 9.9%
2015
Zanox
Increase of
discount
rate
(before
taxes) to
Increase
of
discount
rate (after
taxes) to
Reduction
of growth
rate to
Reduction
of cash
flow in the
fifth year of
medium-
term
planning by
10.5%
10.4%
9.0%
8.7%
1.7%
– 12.7%
2.5%
0.0%
In the course of a sensitivity analysis, we have as-
sumed separately for each of our large reporting units
a 10 % decrease of future cash flows in the last plan-
ning year, a 10 % increase of the weighted average
costs of capital or a decrease of the terminal growth
rate by half a percentage point. On this basis, solely for
the reporting unit Zanox (PY: for the reporting units
Ringier Axel Springer Media and Zanox) the carrying
amount of the assets exceeded the recoverable
amount of the reporting unit. As of December 31, 2015,
the surplus between the recoverable amount and the
carrying amount of the reporting unit Zanox totaling
€ 22.0 million (PY: € 0.0 million for the reporting unit
Zanox and € 51.5 million for the reporting unit Ringier
Goodwills and intangible assets with indefinite useful
lives allocated to other reporting units of the group
totaling € 682.4 million (PY: € 740.8 million) amounted
to less than 5 % (PY: 6 %) of the total amount for each
reporting unit in aggregation. In the course of a sensi-
tivity analysis, we have assumed separately for each of
our other reporting units a 10 % decrease of future
cash flows in the last planning year, a 10 % increase of
the weighted average costs of capital or a decrease of
the terminal growth rate. As in the previous year, no
impairment was indicated for any of the other reporting
units.
123
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(5) Property, plant, and equipment
The changes in property, plant, and equipment were as follows:
€ millions
Acquisition or production cost
Balance as of January 1, 2014
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Balance as of December 31, 2014
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Balance as of December 31, 2015
Depreciation, amortization, and impairments
Technical
equipment
and
machinery
Other
equipment,
operational
and office
equipment
Construction
in progress
Land and buildings
560.6
530.5
219.5
1.0
– 0.6
– 1.0
0.8
– 0.2
– 124.8
435.8
0.2
0.0
0.1
1.9
– 23.6
1.8
416.2
2.8
– 0.2
– 0.7
5.2
– 6.8
0.4
531.3
0.0
– 1.2
0.1
4.1
– 5.5
6.4
535.2
4.7
– 1.9
– 1.1
21.0
– 19.0
– 11.5
211.6
3.8
– 6.0
1.3
22.6
– 4.1
– 7.0
222.3
4.2
0.0
0.3
0.0
12.6
– 0.2
– 3.8
13.1
– 0.1
0.0
0.0
24.0
0.1
– 14.4
22.7
Total
1,314.8
8.5
– 2.4
– 2.8
39.6
– 26.2
– 139.7
1,191.8
3.9
– 7.2
1.6
52.5
– 33.0
– 13.2
1,196.4
Balance as of January 1, 2014
161.6
362.2
150.8
– 0.1
674.5
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Balance as of December 31, 2014
Initial consolidation
Deconsolidation
Currency effects
Additions
Disposals
Transfers
Balance as of December 31, 2015
Carrying amounts
Balance as of December 31, 2015
Balance as of December 31, 2014
0.3
0.1
– 0.4
22.6
– 6.8
– 0.6
377.4
0.0
– 0.4
0.1
21.9
– 5.3
– 0.6
393.1
142.1
153.9
0.7
– 1.1
– 0.7
26.8
– 18.3
– 11.5
146.6
0.1
– 4.8
2.1
26.5
– 3.1
– 11.8
155.6
66.7
65.0
0.0
0.0
0.0
0.0
– 0.1
0.0
--- 0.1
0.0
0.0
0.0
0.0
0.1
0.0
0.0
22.7
13.2
0.9
– 1.4
– 1.2
83.0
– 25.2
– 62.4
668.2
0.1
– 5.2
2.1
57.3
– 21.3
– 12.2
689.0
507.5
523.5
0.0
– 0.4
– 0.2
33.7
– 0.1
– 50.4
144.3
0.0
0.0
– 0.1
8.8
– 13.0
0.2
140.3
275.9
291.4
124
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
As of December 31, 2015, property, plant and equip-
ment with acquisition or production cost of
€ 276.3 million (PY: € 261.5 million) were in use that had
already been fully depreciated.
At the balance sheet date, property, plant, and equip-
ment amounting to € 35.3 million (PY: € 21.5 million) had
been pledged as security for own liabilities.
The carrying amount of property, plant, and equipment
as part of finance leases was, as of December 31, 2015,
€ 1.4 million (PY: € 2.0 million).
The reclassifications of acquisition and manufacturing
costs and depreciation on land and buildings carried out
in the prior year were primarily related to an office build-
ing in Hamburg (see note (11)).
(6) Investment property
The development of the office and retail spaces in Berlin
(PY: Berlin and Hamburg) leased to third parties was as
follows:
€ millions
Acquisition or production cost
Balance as of January 1, 2014
Transfers
Balance as of December 31, 2014
Transfers
Balance as of December 31, 2015
Depreciation, amortization, and impairments
Balance as of January 1, 2014
Additions
Transfers
Write-ups
Balance as of December 31, 2014
Additions
Transfers
Write-ups
Balance as of December 31, 2015
Carrying amounts
As of December 31, 2015
As of December 31, 2014
Investment
property
75.8
– 32.9
42.9
– 3.5
39.4
20.8
10.9
– 13.8
– 6.3
11.6
0.9
– 1.4
– 4.9
6.2
33.2
31.3
125
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For reclassifications in the assets held for sale in the prior
year, see note (11). Furthermore, due to increased own
use of office space, reclassifications with carrying
amounts totaling € 2.1 million took place from invest-
ment property to property, plant, and equipment.
The fair value of investment property as of Decem-
ber 31, 2015 totaled € 36.1 million (PY: € 31.4 million).
The evaluation carried out by ourselves took place on the
basis of forecasted net cash flows using the DCF meth-
od. The calculation was based on a discount rate of
6.10 % (PY: 6.85 %) and a terminal growth rate of 5.10 %
(PY: 5.85 %). As a result of the change in fair value, write-
ups amounting to € 4.9 million (PY: € 6.3 million) were
carried out. Recognition took place in other operating
income in the Services/Holding segment.
In the reporting year, rental income of € 3.0 million (PY:
€ 7.0 million) was generated, with corresponding directly
attributable operating expenses of € 0.7 million
(PY: € 0.7 million). As in the prior year, directly attributa-
ble expenses for non-rented space of less than
€ 0.1 million were incurred.
The future minimum lease payments from investment
property broke down as follows:
€ millions
Due in up to one year
Due in one to five years
Due in more than five years
Total
2015
2014
1.8
5.7
1.2
8.7
2.0
6.2
2.0
10.2
(7) Non-current financial assets
(a) Investments recognized using the equity
method
Summarized financial information regarding all compa-
nies which are accounted for using the equity method
and are not individually material are shown below:
€ millions
Carrying amount
Share attributable to Axel Springer SE:
Income from continued operations
Other income/loss
Comprehensive income
2015
91.6
– 6.5
0.0
– 6.5
2014
51.2
– 1.8
0.4
– 1.4
The increase in carrying amounts mainly resulted from
new acquisitions and capital increases, especially with
respect to Thrillist Media Group, Inc. and at Project A
Ventures GmbH & Co. KG.
In the previous year, the proportionate income/losses to
be recognized in income from investments were not
recognized in the amount of € - 18.4 million, and cumu-
latively in the amount of € - 68.9 million as the carrying
amount of the investment had already been fully depreci-
ated in 2010. The investment was disposed of in the
reporting year.
(b) Other non-current financial assets
Other non-current financial assets included subordinate
loans with multi-year terms amounting to € 255.8 million
(PY: € 240.9 million) from the sale of domestic regional
newspapers as well as program and women’s maga-
zines in the prior year (see note (2d)).
Furthermore, € 203.8 million in other non-current finan-
cial assets (PY: € 259.1 million) relate to options secured
by bank guarantees on the sale of our shares in Do⁄an
TV (“Put options"). We sold around 2.7 % of shares in the
reporting year; the proceeds from this transaction
amounted to € 63.3 million. The valuation of the put
options at the balance sheet date is based on the dis-
counted payment claim deriving from the agreed option
126
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
rights, minus all costs to be incurred. The discount rates
were determined according to the duration of the put
options and the default risk, taking into account the
granted bank guarantees.
In addition, other non-current financial assets mainly
included other investments and other loans.
In the previous year, we sold our minority interest (17.2 %)
held by SeLoger in the iProperty Group Ltd., Sydney,
Australia, for € 74.3 million. The gain on disposal, rec-
orded within income from investments, totaled
€ 55.1 million (before a tax effect of € 2.2 million).
The changes in the allowances for doubtful trade receiv-
ables are presented below:
€ millions
Balance as of January 1
Additions
Reversals
Utilization
Disposal due to deconsolidation
Other changes
Balance as of December 31
2015
26.4
6.0
– 1.7
– 2.2
– 2.2
0.5
26.8
2014
25.5
7.0
– 2.5
– 1.9
– 0.1
– 1.6
26.4
(8) Inventories
The inventories broke down as follows:
€ millions
12/31/2015 12/31/2014
Raw materials and supplies
13.9
13.9
Semi-finished goods
Finished goods and merchandise
Inventories
0.6
5.6
4.5
5.2
20.1
23.6
As of December 31, 2015, receivables in the amount of
€ 413.3 million (PY: € 360.7 million) were neither past
due nor subject to valuation allowances. With regard to
these receivables, there were no indications at the re-
porting date that would suggest that the customers
would not fulfill their payment obligations.
The past-due trade receivables at the reporting date for
which no valuation allowances have been charged are
presented in the table below:
Inventories of € 9.7 million (PY: € 9.3 million) were val-
ued at their net realizable value. The write-downs for
these assets as of December 31, 2015 totaled
€ 2.6 million (PY: € 3.0 million), of which € - 0.4 million
(PY: € 0.6 million) were recognized in income in the
reporting year.
€ millions
up to 30 days
31 to 90 days
91 to 180 days
181 to 360 days
361 days and longer
12/31/2015 12/31/2014
48.0
21.8
5.3
5.3
2.5
42.5
17.1
5.8
5.1
5.3
(9) Trade receivables
The trade receivables broke down as follows:
€ millions
12/31/2015 12/31/2014
Trade receivables, nominal
Allowances for doubtful trade receivables
Trade receivables
597.7
– 26.8
570.9
550.2
– 26.4
523.8
127
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(10) Other assets
The other assets broke down as follows:
€ millions
12/31/2015 12/31/2014
Reimbursement right for pension
obligations
Derivatives
Current loans
Other
Other financial assets
Advance payments
Receivables from other taxes
Other
Other non-financial assets
27.4
5.1
0
43.7
76.2
24.5
16.8
10.8
52.1
0.0
0.5
53.1
70.7
124.4
27.5
12.7
0.0
40.2
Other assets
128.3
164.6
Regarding the reimbursement right concerning the pen-
sion obligations (PY: € 30.6 million, recorded under
balance sheet item receivables due from related parties)
see note (14) and note (37).
The miscellaneous financial assets included accrued
interest claims, receivables from insolvency proceedings
against the Kirch Group and security deposits, among
other items.
The settled short-term loan concerned an advance pay-
ment of a special dividend in the prior year associated
with the sale of the Czech print activities. The special
dividend was legally carried out in the reporting year.
(11) Assets held for sale
As of the reporting date, assets held for sale and related
liabilities were made up as follows:
€ millions
Assets Liabilities
Assets Liabilities
12/31/2015
12/31/2014
Axel Springer
Switzerland
CarWale
Office building
Hamburg (part I)
Office building
Hamburg (part II)
178.8
20.8
72.4
20.7
0.0
0.0
0.0
0.0
105.2
67.7
95.9
68.0
Held for sale
311.1
160.8
6.3
0.0
0.0
95.9
0.0
68.0
Concerning the assets and liabilities held for sale with
respect to Axel Springer Schweiz and CarWale see note
(2c).
A portion of the office building in Hamburg, which was
until recently used internally as well as leased out to a
third party, was sold on January 1, 2016. There was no
gain or loss on disposal. In the prior year, the residual
carrying amounts of € 68.5 million (Property, plant, and
equipment) and € 27.4 million (Investment property)
concerning this part of the building were reclassified as
assets held for sale. Before reclassification, particularly
due to the anticipated disposal costs, impairment losses
in the amount of € 23.6 million and € 9.4 million were
recorded. Disposal costs of € 9.3 million incurred in the
reporting year increased the carrying amount to
€ 105.2 million. A part of the building was recognized as
part of finance leases, which were ended as of Decem-
ber 31, 2015; pro rata remaining carrying amounts
amounted to € 31.8 million (Property, plant, and equip-
ment) and € 14.6 million (Investment property), pro rata
impairments totaled € 11.0 million or € 5.0 million re-
spectively. In the previous year, liabilities in the amount of
€ 68.0 million, which had arisen in relation to finance
leases, were reclassified from financial liabilities
(€ 62.9 million) and other liabilities (€ 5.1 million) to liabili-
ties related to assets held for sale. The purchase price
for the transaction – which was finalized in early 2016 –
was already received in the reporting year (see note (17)
and note (30)).
128
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The finalization of the disposal of the second part of the
office building in Hamburg is envisaged for mid-2016.
Consequently, the remaining carrying amounts totaling
€ 6.3 million were reclassified as assets held for sale in
the reporting year.
(12) Equity
The components and changes in consolidated equity are
summarized in the consolidated statement of changes in
equity.
mium in the amount of € 453.9 million was assigned to
paid-in capital.
As of December 31, 2015 authorized capital was still
€ 2,044,689.
(c) Additional paid-in capital
The additional paid-in capital (€ 499.8 million, PY:
€ 45.3 million) rose in the fiscal year primarily due to the
share premium achieved from the capital increase
against contributions in kind by € 453.9 million.
(a) Subscribed capital
The fully paid-in subscribed capital in the amount of
€ 107.9 million (PY: € 98.9 million) is divided into
107,895,311 (PY: 98,940,000) registered shares with a
calculated ratio of € 1.00 per share. The shares can only
be transferred with the company’s consent. For infor-
mation on the capital increase carried out in the fiscal
year, see the following section.
(d) Accumulated retained earnings
The accumulated retained earnings comprised the in-
come of the companies included in the consolidated
financial statements, to the extent that they have not
been distributed to shareholders. Moreover, transactions
with shareholders are recognized here; in the fiscal year,
an adjustment of prior-year figures was undertaken (see
note (4a)).
(b) Authorized capital
The annual shareholders’ meeting of April 14, 2015
allowed the Executive Board, with the approval of the
Supervisory Board, to increase the share capital until
April 13, 2020 by up to € 11,000,000 through the issue
of newly registered shares in return for cash and/or con-
tributions in kind (authorized capital). With the approval of
the Supervisory Board, the Executive Board can waive
the subscription right of the shareholders in case of a
capital increase against contributions in kind.
By resolution of the Executive Board of Axel Springer SE
of December 3, 2015, and the approval of the Supervi-
sory Board of the same date, the subscribed capital was
increased by € 8,955,311 to € 107,895,311 through the
issue of 8,955,311 registered shares with profit participa-
tion from January 1, 2015 onwards. The capital increase
was carried out against contributions in kind excluding
subscription rights. The according commercial register
entry was carried out on December 9, 2015. The new
shares were issued in consideration for the acquisition of
company shares (see note (2c)). The value of the contri-
butions in kind totaled € 462.9 million; the resulting pre-
In the fiscal year, Axel Springer SE distributed an amount
of € 178.1 million (PY: € 178.1 million) or € 1.80 (PY:
€ 1.80) per qualifying share for the previous fiscal year.
Moreover, the change in accumulated retained earnings
in the fiscal year resulted primarily from the acquisition of
Immowelt Group (€ 126.7 million, see note (2c)), the
acquisition of non-controlling interests in Axel Springer
Digital Classifieds (€ 367.0 million, see note (2c)) and
the granting of option rights to acquire the remaining
non-controlling interests in the Bonial Group
(€ 61.1 million).
In association with the increase of our participation in
Axel Springer Digital Classifieds in the prior fiscal year,
the difference of € 342.7 million resulting from the acqui-
sition of non-controlling interests was set off within ac-
cumulated retained earnings (see note (2c)).
129
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(e) Treasury shares
As of December 31, 2015, as in the prior year, we did
not hold any treasury shares.
(g) Attributable to non-controlling interest
The non-controlling interests mainly related to the follow-
ing companies:
Within a stock option program in the fiscal year,
127 thousand treasury shares (PY: 116 thousand shares)
were issued at their fair value on the date of issue in the
amount of € 51.31 (PY: € 43.88) by conversion of varia-
ble compensation tied to performance of the employees
of the Group. Personnel expenses of € 2.7 million (PY:
€ 2.1 million) were incurred by granting increases in the
conversion amounts, which were in each case covered
by provisions formed in the prior year. To service the
program, treasury shares with a fair value of € 6.5 million
(PY: € 7.7 million) were acquired; shares that were not
required were subsequently sold on the market at a fair
value of less than € 0.1 million (PY: € 2.6 million). Acqui-
sition, issuing and the sale of treasury shares had no
effect on the level of equity.
(f) Accumulated other comprehensive income
In the fiscal year, accumulated other comprehensive
income particularly comprised actuarial gains and losses
from employer pension plans of € 95.2 million (PY:
€ – 119.7 million) and unrealized gains and losses from
companies accounted for using the equity method in the
amount of € 1.1 million (PY: € – 10.0 million).
Due to the sale of investments and capital repayments
with respect to net investments in foreign companies, the
unrealized gains and losses from foreign currency trans-
lation previously recognized under other comprehensive
income in the total amount of € – 7.8 million were reclas-
sified into the income statement.
In the prior year, in conjunction with the sale of our mi-
nority shareholding (17.2 %) in iProperty Group Ltd.,
Sydney, Australia, held by SeLoger, unrealized gains
from the market price revaluation in the amount of
€ 44.8 million after taxes included in other comprehen-
sive income were reclassified into the income statement
in the context of income recognition (see note (7)).
€ millions
12/31/2015
12/31/20141)
Ringier Axel Springer Media
AG, Zurich, Switzerland
Immowelt Holding AG,
Nuremberg
ZANOX AG, Berlin
Axel Springer Digital
Classifieds GmbH, Berlin
Other companies
234.0
270.2
71.9
46.6
0.0
96.3
0.0
38.7
108.8
63.9
481.6
Non-controlling interests
448.8
1) Regarding the adjustment of the prior-year figures see note (4a).
As of December 31, 2015 the non-controlling interests in
Ringier Axel Springer Media amounted to 50.0 % (PY:
50.0 %), whilst their share in the Group results amounted
to € 15.4 million (PY: € 50.1 million). In addition, the non-
controlling interests received dividends in the amount of
€ 91.5 million in the prior year. This primarily related to
an extraordinary dividend with regard to the executed
sale of the Czech print activities. The distribution with a
partial amount of € 53.1 million was legally executed in
the current fiscal year.
Summarized financial information for the Ringier Axel
Springer Media subgroup is shown in the following table:
€ millions
Revenues
Net income
Comprehensive income
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Cash flows
2015
275.0
31.4
35.2
112.7
518.5
111.2
40.1
– 63.7
2014
268.5
177.4
161.5
215.8
481.6
59.0
85.0
56.5
130
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
In the fiscal year, Axel Springer acquired the 15 % share
in Axel Springer Digital Classifieds held by non-
controlling shareholders on the prior-year reporting date.
As of December 31, 2015, there were no non-controlling
shareholders in Axel Springer Digital Classifieds GmbH
(PY: ratio of non-controlling shareholders 15.0 %). For
information on the change in ratio and effects from the
transaction see note (2c). The share of non-controlling
shareholders in the Group results amounted to
€ 18.7 million (PY: € 43.3 million); there were no divi-
dends paid (PY: € 0.2 million).
Summarized financial information for the Axel Springer
Digital Classifieds subgroup for the prior year is shown in
the following table:
€ millions
Revenues
Net income
Comprehensive income
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Cash flows
2014
508.0
130.6
126.8
183.1
1,788.6
399.9
922.0
– 1.4
(13) Share-based payment
Members of the Executive Board and selected executives (beneficiaries) were granted various virtual stock option plans,
the fundamental parameters of which are described below:
Grant date
Term in years
Qualifying period in years
Option rights granted
Underlying (€)
Maximum payment (€)
Value at grant date (€)
Total value at grant date (€ million)
Virtual stock option plans
Executive Board Program
Senior Executive Programs
2012
2014 I
2014 II
2011 I
2011 II
2014
01/01/2012
01/01/2014
09/01/2014
10/01/2011
10/01/2011
03/01/2014
6
4
6
4
6
4
4
2
6
4
5
3
450,000
205,313
675,000
472,500
472,500
60,000
30.53
61.06
5.26
2.4
44.06
88.12
6.69
1.4
44.56
89.12
6.26
4.2
30.00
60.00
2.74
1.3
35.00
70.00
2.31
1.1
46.80
93.60
8.14
0.5
Provided that the beneficiary is employed by the compa-
ny at least until the expiration of the vesting period, all
virtual stock options granted to the relevant senior exec-
utive may become vested. If the authorized senior execu-
tive's employment with the company ends before the
end of the vesting period, but is at least one year after
the grant date, the stock options are vested on a pro-
rated basis in relation to the vesting period (Executive
Board program), up to one half (executive programs
2011 I and 2014), or to one quarter per elapsed year of
the vesting period (executive program 2011 II).
A further condition for vesting to take place is that
either the volume-weighted average price of the Axel
Springer share is at least 30 % over the base value or
that the percentage increase of this average price ex-
131
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
ceeds that of the base value of the development of the
DAX over a period of 90 calendar days (Executive
Board program) or three calendar months (executive
program) within a time period of a year before the end
of the waiting period.
Exercising stock options is only possible if the volume-
weighted average price of the Axel Springer share 90
calendar days (Executive Board program) or three calen-
dar months (executive program) before exercising such
options is at least 30 % over the base value and that the
percentage increase exceeds that of the DAX index.
Each option grants a payment claim in the amount of the
growth in value of the Axel Springer share, restricted to a
maximum of 200 % of the base value, which corre-
sponds to the difference between the volume-weighted
average price during the last 90 calendar days or three
months prior to exercise and the base value.
Beneficiaries are obligated to hold one Axel Springer
share for every ten stock options as their own investment.
Disposing of these shares prior to exercising the stock
options would result in the stock options being forfeited
at the same rate.
The value of the options was determined by application
of a Black-Scholes model in a Monte Carlo simulation at
the grant date. The options will be remeasured at each
reporting date and recognized proportionally in accord-
ance with the projected vesting.
The development of the stock options is shown below:
01/01/2014
Grant
Exercise
Lapse
12/31/2014
Grant
Exercise
12/31/2015
Virtual stock option plans
Executive Board Program
Senior Executive Programs
2012
2014 I
2014 II
2011 I
2011 II
450,000
0
0
472,500
472,500
0
0
– 56,250
205,313
675,000
0
0
0
0
0
– 471,650
– 850
0
0
0
2014
0
60,000
0
0
393,750
205,313
675,000
0
0
0
0
0
0
393,750
205,313
675,000
0
0
0
0
472,500
60,000
0
0
0
0
472,500
60,000
The expenses and income in the fiscal year, as well as the portfolio of liabilities and provisions at the reporting date are
shown below:
Expenses/Income 2015
Expenses/Income 2014
Carrying amount as of 12/31/2015
Carrying amount as of 12/31/2014
Virtual stock option plans
Executive Board Program
Senior Executive Programs
2012
--- 2.9
– 1.7
8.6
5.8
2014 I
2014 II
2011 I
2011 II
--- 0.3
– 0.9
1.2
0.9
--- 2.2
– 1.0
3.2
1.0
0.0
– 0.2
0.0
0.0
--- 3.8
– 1.2
8.4
4.6
2014
--- 0.1
– 0.2
0.3
0.2
132
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the stock options program for employees of the
Group see note (12e).
The development of the virtual options is shown below:
Various free share and stock option programs existed at
our subsidiary SeLoger on the acquisition date. They
provided for granting or exercise by the right holders
from the years 2009 to 2013 onwards, linked with a
subsequent holding period of two years. The stock op-
tions with a weighted average purchase price of € 20.93
expire in 2017 until 2019. The right holders were offered
call and put options as part of the acquisition of SeLoger
for transferring all shares from these programs (up to a
maximum of 525 thousand) to Axel Springer in return for
a cash payment. The call and put options are not linked
to any market-related or company-related or any other
conditions and vest immediately after the issuance of the
shares to the employees. The purchase price upon exer-
cise amounts to € 38.05 (squeeze-out price) multiplied
by the ratio of the volume-weighted 1-month-average
rate of the Axel Springer share on the last day of trading
prior to exercise of the options to the volume-weighted 1
month-average rate of the Axel Springer share on the
last trading day before squeeze-out (€ 36.15 when tak-
ing the share split of 2011 into account).
Following the principle of substance over form, the pro-
grams are treated by us as virtual stock option programs
granting a payment claim in the amount of the difference
between the exercise price and the purchase price.
Measurement at the grant date is based on the Black-
Scholes model or the current share price, considering
future dividends. The weighted average fair value at the
date of exercise of the options was € 28.83 per virtual
stock option or € 15.1 million in total. The virtual options
will be remeasured on each reporting date and recog-
nized proportionally in accordance with the vesting that
has now completely occurred. In the fiscal year nearly all
options were excercised and paid.
in thousands
Option rights as of January 1
Exercise
Option rights as of December 31
€ millions
Personnel expenses
Other operating income (+) / expenses (-)
Liabilities as of December 31
2015
192
– 188
4
2015
– 0.9
0.0
0.1
2014
243
– 51
192
2014
– 1.0
– 0.1
9.9
Our subsidiary AUFEMININ SA granted its senior execu-
tives subscription rights for free shares and stock options.
These share-based payments must be settled with
shares of AUFEMININ SA.
In November 2013, November 2010 and June 2009,
300 thousand stock options for acquisition of one share
of AUFEMININ SA, each with an exercise price of
€ 26.19, € 17.15 or € 8.94, respectively, were issued to
senior employees. These options vested upon expiration
of the first (50 %) and second (50 %) years after the grant
date, insofar as the earnings target established for the
individual tranche (EBITDA of the fiscal year prior to the
year of vesting) was achieved. Once they have vested,
the options can be exercised for a total of five (50 %) or
four (50 %) years. Ninety-nine thousand stock options
granted in April 2008, each one entitling the holder to
purchase one share of AUFEMININ SA (exercise price:
€ 20.46) will become vested in equal annual instalments
over a period of four years. The option grant is not condi-
tioned 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.
133
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The number of options and the weighted average exer-
cise price developed as follows:
2015
2014
Options in
thousands
Exercise
price1) in €
Options in
thousands
Exercise
price1) in €
Balance as of
January 1
Lapse
Exercise
Issuance
Balance as of
December 31
Thereof
exercisable
557
-6
21.62
8.94
– 110
15.50
0
–
609
– 12
– 40
0
21.13
18.31
15.16
–
441
23.32
557
21.62
441
23.32
407
19.93
1) Weighted average exercise price.
The weighted average stock price at the date of exercise
of the stock options during the financial year was € 25.6
(PY: € 28.2). The exercise prices for the options out-
standing on the reporting date were between € 17.15
and € 26.19 (PY: € 8.94 and € 26.19). As in the prior
year, the weighted average remaining term of these
options was 3 years. The compensation expenses rec-
orded in personnel expenses amounted to € 0.5 million
in the fiscal year (PY: € 1.1 million). The additional paid-in
capital was increased by the same amount.
Upon closing date of the purchase with respect to the
majority shareholding in Business Insider at the end of
October 2015 (see note (2c)), both management board
members of Business Insider were granted a total of
21,952 new stock options to acquire shares in Business
Insider Inc. as a replacement for an existing stock option
program. The new stock options are vested over a peri-
od of ten years. 30 % of these granted stock options
become vested after three years and subsequently, a
further 10 % of the granted stock options become vest-
ed each year over the remaining vesting period. The
option rights become exercisable once they are vested
until the end of the total period of 10 years after grant
date. The exercise of the options is not dependent upon
any other earnings or market conditions. Should the
employment relationship with the two management
board members be terminated after the first three years,
there is – depending on the reason for the termination –
a purchase obligation on the side of Axel Springer or
rather a right to acquire the shares arising from the op-
tions which have vested. Within a three-month period
after the total period of ten years, the management
board members are entitled to tender all shares that
have been obtained through the options to Axel Springer
at fair value on exercise date, which leads to an irrevo-
cable obligation to be settled in cash. Thus, it is a cash-
settled share-based payment.
The exercise price to be paid by the two management
board members amounts to kUSD 3.6 (k€ 3.3) and
represents the fair value per share that was assumed for
the acquisition of the majority shareholding at the end of
October 2015.
At grant date, the fair value of these stock options was
€ 12.9 million. € 7.4 million of the fair value of the op-
tions was treated as consideration transferred in the
course of the initial consolidation for the acquisition (see
note (2c)). The remaining fair value of € 5.5 million was
classified as remuneration for the continuing employment
of the board members of Business Insider. The fair value
was determined on the basis of an option pricing model
using a Monte Carlo simulation, taking into account the
strike price of the options, the risk-free interest rate and
the expected dividends; the volatility was derived using a
peer group comparison. At each reporting date, the
option rights will be remeasured; likewise, the personnel
expenses to be recorded over the vesting period will be
calculated.
In the reporting year, an amount of € 0.2 million was
recorded in personnel expenses. The value of the liability
arising from the stock option program as of Decem-
ber 31, 2015 was € 7.8 million.
Other share-based payment programs were individually
and in total insignificant for the financial position, liquidity,
and financial performance of the Group.
134
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(14) Pension obligations
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 and amount to
€ 51.3 million (PY: € 52.7 million), of which € 7.8 million
(PY: € 7.1 million) are allocated to foreign pension insur-
ance carriers.
Provisions for pensions were created to account for the
obligations arising from vested pension rights and cur-
rent 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 reserves for performance-based pension
plans correspond to the cash value of the obligations on
the reporting date less the time value of the plan assets.
Along with general actuarial risks such as risks from
salary and pension increases, longevity risk, and interest
rate risk, these are inflation risk and capital market and
investment risk.
Essentially, three different pension plans exist in the
German Group companies that are subject to the Ger-
man Company Pension Act, and thus to the statutory
regulations relating in particular to vesting, compensation
for inflation in the benefit phase, and insolvency protec-
tion by the Pensions Guarantee Corporation. The pen-
sion plans are partially financed by premium reserve
funds that are managed by Axel Springer Pensionstreu-
hand e.V. as trustee. The two defined-benefit pension
plans provide for an annual pension for entitled persons
based on fixed amounts that depend for the first pension
plan only on the length of service in the company, and
for the second pension plan additionally on the position
in the company, and are static in the vesting period and
dynamic in the benefit payment period in accordance
with the requirements of the Company Pension Act. The
promises to the Executive Board correspond in their
design to the second pension plan and are additionally
dynamic in the vesting period depending on inflation. The
third pension plan is a defined-contribution benefit in
which a benefit is calculated using fixed factor tables
dependent on converted compensation components.
Ongoing benefits are adjusted from the beginning of
pension payments at 1 % p.a.
Pension commitments in other countries relate above all
to Switzerland. The employees are insured against the
risks of old age, death, and disability in various defined-
benefit plans in a legally separate employee benefit fund
at an independent third party. The retirement benefit is
calculated using the retirement fund balance existing at
the time of retirement applying a conversion rate. The
retirement fund balance earns interest and accrues using
age-dependent staggered savings contribution rates
depending on the insured salary up to retirement age.
The risk benefits for death and disability are calculated as
a percentage of the insured salary.
As for the plan assets existing for foreign pension com-
mitments, the values of the assets essentially correspond
to the individual redemption values of the reinsurer. For
the active insured persons, this is the retirement fund
balance, and for the retirees, this is the premium re-
serves/provisions of the reinsurer.
The measurement was based on the following parame-
ters:
Information
in %
2015
2014
Germany
Other
countries1)
Germany
Other
countries
Discount rate
Salary trend
Pension trend
2.40
1.75
1.75
0.9
1.0
0.0
1.9
1.75
1.75
1.0
1.0
0
1) The information relates primarily to pension obligations recognized as held for sale
at the reporting date.
135
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The amount of the provision was calculated as follows:
€ millions
12/31/2015
12/31/2014
Present value of defined benefit obligations financed by fund
Fair value of plan assets
Present value of defined benefit obligations not financed by fund
Provision
Reimbursement right
Net obligation
Germany
Other
countries
394.7
– 161.1
101.7
335.3
– 27.4
307.9
2.9
– 2.2
3.2
3.9
0.0
3.9
Total
397.6
Germany
Other
countries
477.1
109.8
Total
586.9
– 163.3
– 155.7
– 91.0
– 246.7
104.9
339.2
– 27.4
311.8
56.3
377.8
– 30.6
347.2
3.1
21.9
0.0
21.9
59.5
399.7
– 30.6
369.0
The changes in the present value of the pension obligations are presented in the table below:
€ millions
2015
Other
countries
Germany
Present value of obligations as of January 1
533.5
112.9
Change in consolidated companies
Current service cost
Interest expense
Actuarial gains/losses arising from changes in demographic
assumptions
Actuarial gains/losses arising from changes in financial
assumptions
Payments by employees
Transfer of pension obligation
Exchange rate change
Payments to retirees
2014
Germany
Other
countries
423.5
102.1
0.0
5.0
15.1
1.3
2.6
2.1
Total
646.4
– 0.9
9.3
11.3
Total
525.5
1.3
7.5
17.2
– 0.9
7.2
10.1
0.0
2.1
1.3
– 2.5
– 0.2
– 2.7
– 1.0
0.0
– 0.9
– 32.2
106.3
– 32.6
3.0
0.1
0.0
– 21.5
0.5
2.2
0.0
12.2
– 6.4
5.2
0.1
12.2
– 27.9
6.2
2.0
0.0
2.0
112.5
5.1
– 0.4
2.0
3.1
– 0.4
0.0
– 21.0
– 5.3
– 26.4
Reclassification into or from liabilities in connection with assets
held for sale (see note (2c))
0.0
– 118.5
– 118.5
3.0
0.0
3.0
Present value of obligations as of December 31
496.4
6.1
502.5
533.5
112.9
646.4
In fiscal year 2016, contributions to fund-financed de-
fined benefit plans are expected to total € 25.3 million
(PY: € 2.4 million), of which € 0.3 million (PY:
€ 2.4 million) are employer contributions from Swiss
companies.
136
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The fair value of the plan assets showed the following changes:
€ millions
Plan assets as of January 1
Change in consolidated companies
Income from plan assets
Employee contribution
Employer contribution
Benefits paid
Actuarial gains/losses arising from changes in demographic
assumptions
Actuarial gains/losses arising from changes in financial
assumptions
Exchange rate changes
2015
Other
countries
Germany
155.7
91.0
0.5
3.0
0.0
0.0
0.0
2.0
0.0
0.0
0.0
1.0
2.2
1.4
1.1
10.1
Reclassification into liabilities in connection with assets held for
sale (see note (2c))
Plan assets as of December 31
0.0
– 98.3
161.1
2.2
Total
246.7
0.5
4.0
2.2
1.5
2014
Germany
Other
countries
149.3
88.4
0.0
1.8
2.0
2.4
0.0
5.4
0.0
0.0
0.0
1.1
10.1
– 98.3
163.3
0.0
0.0
0.0
155.7
0.2
1.7
0.0
91.0
– 6.3
– 6.3
– 5.3
– 5.3
0.0
2.0
1.0
0.0
The investment portfolio broke down as follows:
€ millions
Shares
Bonds
Money market instruments
Cash and cash equivalents
Plan assets with market price quotations
Real Estate
Others
Plan assets without market price quotations
Total
12/31/2015
12/31/2014
Germany
Other
countries
Total
Germany
Other
countries
18.6
53.3
12.3
9.4
93.6
67.5
0.0
67.5
161.1
0.7
0.5
0.0
0.2
1.4
0.6
0.2
0.8
2.2
19.3
53.8
12.3
9.6
95.0
68.1
0.2
68.3
10.3
53.1
17.7
7.1
88.2
67.5
0.0
67.5
163.3
155.7
3.3
68.2
0.0
0.1
71.6
15.3
4.2
19.4
91.0
137
Total
237.7
0.0
7.1
2.0
2.4
1.0
0.2
1.7
0.0
246.7
Total
13.6
121.3
17.7
7.2
159.8
82.8
4.2
86.9
246.7
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The fair value of the plan assets includes real estate used
by the company itself in the amount of € 55.4 million (PY:
€ 46.2 million).
Plan assets recognized as held for sale as of Decem-
ber 31, 2015 totaling € 98.3 million contained plan
assets with an amount of € 77.0 million (thereof
€ 73.8 million Bonds and € 3.1 million Shares) which
have market price quotations and plan assets with an
amount of € 21.3 million (thereof € 15.9 million Real
Estate and € 5.4 million Others) which do not have
market price quotations.
Axel Springer SE is entitled to reimbursement of pension
obligations or pension expenses arising in connection
with them in the context of the outsourcing of rotogra-
vure printing operations in 2005. The reimbursement
right is presented as a separate financial asset (PY: claim
against related parties), whereas in the income statement,
the income from the reimbursement is netted with the
corresponding pension expenses. Based on the existing
contractual regulations, we do not assume a short-term
settlement of the reimbursement claim and the corre-
sponding pension obligations any more, and therefore in
the reporting period, we classified the asset as well as
the related pension liability in an amount of € 25.1 million
(PY: € 28.3 million) as long-term.
The value of the reimbursement right developed as fol-
lows:
€ millions
Reimbursement right as of January 1
Income from reimbursement rights
Paid-out benefits
Actuarial gains/losses arising from
changes in demographic assumptions
Actuarial gains/losses arising from
changes in financial assumptions
Reimbursement right as of December 31
2015
30.6
0.6
– 2.3
2014
27.9
1.0
– 2.3
0.0
– 0.1
– 1.6
27.4
4.2
30.6
The expenses for defined benefit pension plans broke down as follows:
€ millions
Current service cost
Interest expense
Income from plan assets
Income from reimbursement rights
Plan curtailments
Pension expenses
2015
Other
countries
Germany
Total
Germany
7.2
10.1
– 3.0
– 0.6
0.0
13.7
2.1
1.3
– 1.0
0.0
– 1.9
0.5
9.3
11.3
– 4.0
– 0.6
– 1.9
14.3
5.0
15.1
– 5.4
– 1.0
0.0
13.8
2014
Other
countries
2.6
2.1
– 1.8
0.0
0.0
2.8
Total
7.5
17.2
– 7.1
– 1.0
0.0
16.6
138
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The sensitivity calculations are based on the average
term of the pension obligations calculated as of the bal-
ance sheet date. The calculations were carried out in
isolation for the actuarial parameters classified as materi-
al. As the sensitivity analyses are based on the average
term of the expected pension obligations and thus the
expected payment dates are not taken into account,
they only lead to approximate information or to state
tendencies. In case of changes to the mortality rates or
life expectancies which act as a basis, it is assumed that
if life expectancy of the beneficiaries increases by one
year as of December 31, 2015, pension obligations
would have risen by 3.0 % (PY: 3.7 %) in Germany and
by 1.7 % (PY: 3.6 %) in the remaining countries.
As of December 31, 2015, the weighted average dura-
tion of the defined-benefit obligation in Germany was
14 years (PY: 15 years), while that of the defined-benefit
obligation in foreign countries was 17 years (PY:
17 years).
Service cost is presented within the personnel expenses.
The interest portions contained in the pension expenses
and the income from the plan assets and interest reim-
bursements are presented as components of interest
expenses.
An increase or decrease in the material actuarial as-
sumptions would have the following effects on the pre-
sent value of the total pension obligations as of the bal-
ance sheet date:
Information
in %
Increase by 25 basis
points
Decrease by 25 basis
points
2015
Germany
Other
countries1)
Germany
Other
countries1)
Discount rate
– 3.3
– 1.7
Salary trend
Pension trend
0.0
2.4
0.4
1.1
3.5
0.0
– 2.3
1.8
– 0.4
0.0
1) The information relates primarily to pension obligations recognized as held for sale
at the reporting date.
Information
in %
Increase by 25 basis
points
Decrease by 25 basis
points
2014
Germany
Other
countries
Germany
Other
countries
Discount rate
– 3.4
– 2.3
Salary trend
Pension trend
0.0
2.6
0.4
1.8
3.9
0.0
– 2.4
2.4
– 0.4
0.0
139
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(15) Other provisions
The other provisions broke down as follows:
€ millions
Other obligations towards employees
Structural measures
Partial early retirement program (Altersteilzeit)
Returns
Discounts and rebates
Dismantling obligations
Other taxes
Litigation expenses
Other
Other provisions
Balance as of
01/01/2015
Utilization
Reversals
Additions
Other
changes
Balance as of
12/31/2015
92.7
40.9
39.1
17.5
12.6
6.4
8.1
6.1
62.8
286.3
– 59.8
– 34.4
– 11.4
– 15.7
– 7.1
– 0.3
– 0.8
– 0.9
– 17.3
--- 147.8
– 5.1
– 0.3
– 0.2
– 0.6
– 0.3
– 0.5
0.0
– 0.7
– 8.9
74.5
37.6
14.5
20.3
9.7
1.9
0.5
1.1
6.0
--- 16.6
166.1
10.9
1.0
0.2
– 0.2
0.0
0.3
– 0.3
0.0
– 0.3
11.6
113.2
44.8
42.1
21.3
14.9
7.7
7.6
5.6
42.3
299.6
Other obligations towards employees primarily included
variable compensation tied to performance. Structural
measures were mainly allocated to the newspaper and
magazine as well as distribution and sales divisions, and
printing plants. Provisions for returns comprised the
expected sales returns of publishing products. Other
provisions were mainly allocated to guarantee obligations
in the context of the takeover of domestic regional
newspapers, TV program guides, and women's maga-
zines by FUNKE Mediengruppe.
The other changes result from the initial consolidation of
acquired companies, currency translation differences,
and also from compounding.
Non-current provisions are primarily contained in the
provisions for partial early retirement programs, employ-
ee obligations, dismantling obligations, and structural
measures.
(16) Financial liabilities
The financial liabilities comprise liabilities from a promis-
sory note in the amount of € 632.9 million (PY:
€ 631.7 million), other liabilities due to banks amounting
to € 618.6 million (PY: € 417.2 million), as well as from
finance leases of € 1.4 million (PY: € 2.0 million).
The promissory note was characterized by the following
utilizations, interest rates, and maturities at the reporting
date.
2015 €
million
2014 €
million
Interest rate in %
Maturity
177.0
162.0
112.0
71.5
58.0
56.5
177.0
162.0
112.0
71.5
58.0
56.5
1.47 10/12/2020
1.034 10/11/2018
3.06 04/11/2018
6-month EURIBOR + 0.9 10/12/2020
6-month EURIBOR + 0.7 10/11/2018
2.38 04/11/2016
140
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The other liabilities due to banks were characterized by
utilization, interest rates, and maturities set forth in the
table below. All liabilities were denominated in euros.
Short-term loans are not presented in the table.
(17) Other liabilities
The other liabilities broke down as follows:
€ millions
12/31/2015 12/31/2014
513.1
273.4
2015 €
million
2014 €
million
Interest rate in %
Maturity
0.0
409.0 1-month EURIBOR + 0.575 09/18/2017
250.0
300.0
68.0
3.4
0.0
1-month EURIBOR + 0.40 07/03/2020
0.0
1-month EURIBOR + 0.85 07/22/2020
0.0
Eonia + 0.325 07/03/2020
3.8
3-month EURIBOR + 0.30 10/15/2022
The interest rates were mainly equivalent to the effective
rates of interest. In the case of fixed-interest loan tranch-
es, the interest rates were fixed until the maturity date.
Furthermore, on the reporting date additional unused
short-term and long-term credit facilities amounted to
€ 902.0 million (PY: € 511.0 million).
On the reporting date, liabilities from finance leases in the
prior year in the amount of € 62.9 million, which are
linked with the planned sale of an office building in Ham-
burg, were disclosed as liabilities related to assets held
for sale, see note (11).
Contingent consideration and other put
options for purchase of non-controlling
interests
Payments received from disposal of real
estate
Liabilities from derivatives
Liabilities due to employees
Debit balances in accounts receivable
Other
Other financial liabilities
Advance payments from customers
Liabilities from other taxes
Advance payments received from disposal
of real estate
Accrued liabilities
Advance payments
Liabilities due to social insurance carriers
Capital investment subsidies
Liabilities for duties and contributions
Other
67.5
55.4
36.8
15.2
47.4
735.4
117.8
55.0
48.1
19.8
15.2
11.0
10.9
5.5
31.3
Other non-financial liabilities
Other liabilities
314.4
1,049.8
0.0
44.6
30.1
11.5
53.0
412.6
136.1
53.7
0.0
22.6
14.7
9.6
12.4
5.5
32.0
286.5
699.2
The increase of liabilities from purchase options regard-
ing non-controlling shares and other contigent consider-
ation resulted mainly from the agreement of option rights
within the combining of Immowelt and Immonet Group,
see note (2c).
141
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The advance payments from the disposal of real estate
were linked to the publishing building that was sold at
the beginning of 2016 in Hamburg. A portion of the
received purchase price in the amount of € 67.5 million
was attributable to the plan assets set up for our pension
commitmments. This part was paid out to the plan as-
sets in January 2016.
Liabilities due to employees related to outstanding wage
and salary payments, management bonuses, and sever-
ance award claims.
Accrued liabilities contained liabilities resulting from over-
time and unused vacation.
(18) Maturity analysis of financial liabilities
The contractually agreed (undiscounted) payments related to financial liabilities are presented in the following table:
€ millions
Financial liabilities
Contingent consideration and other put options for purchase of non-controlling
interests
Other non-derivative financial liabilities
Derivative financial liabilities
€ millions
Financial liabilities
Contingent consideration and other put options for purchase of non-controlling
interests
Other non-derivative financial liabilities
Derivative financial liabilities
Undiscounted cash outflows
Carrying
amount as of
12/31/2015
2016
2017--- 2020
2021 ff.
1,252.9
71.4
1,245.8
513.1
520.7
55.4
208.5
510.3
0.3
305.5
9.1
55.0
1.0
7.0
2.0
0.0
Undiscounted cash outflows
Carrying
amount as of
12/31/2014
2015
2016--- 2019
2020 ff.
1,050.9
13.6
833.2
252.3
273.4
417.4
44.6
26.9
394.9
0.3
254.0
20.4
44.2
0.0
2.9
0.1
142
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the consolidated statement of
comprehensive income
(19) Revenues
The revenues broke down as follows:
€ millions
Advertising revenues
Circulation revenues
Printing revenues
Other revenues
Revenues
2015
2014
2,107.6
1,815.1
721.7
59.3
406.3
735.3
67.7
419.8
3,294.9
3,037.9
€ millions
Gains on disposal of subsidiaries were primarily realized
with respect to runtastic GmbH (see note (2c)). The
miscellaneous operating income included income from
providing services to discontinued operations, income
from the insolvency proceedings of the Kirch Group and
a large number of circumstances with immaterial
amounts.
(21) Purchased goods and services
The purchased goods and services broke down as fol-
lows:
Raw materials and supplies and
purchased merchandise
Purchased services
Purchased goods and services
2015
2014
158.9
854.6
1,013.5
196.8
793.2
990.0
During the fiscal year, revenues from barter transactions
amounted to € 54.2 million (PY: € 55.2 million). These
revenues were generated mainly from the bartering of
advertising services.
The increase in operating revenues year on year resulted
particularly from the initial consolidation of acquired
companies.
(20) Other operating income
The other operating income broke down as follows:
€ millions
Gain on disposal of subsidiaries
Revaluation of contingent purchase price
liabilities and other put options for
purchase of non-controlling interests
Income from reversal of provisions
Foreign exchange gains
Income from disposal of intangible assets
and property, plant and equipment
Write-ups
Miscellaneous operating income
Other operating income
2015
112.9
27.1
12.4
7.1
5.8
5.0
101.6
271.8
2014
0.0
32.0
9.5
9.7
1.2
6.3
106.0
164.7
Raw materials and supplies and purchased merchandise
comprised paper costs amounting to € 63.4 million (PY:
€ 78.2 million).
The cost of purchased services was predominantly
composed of purchased third-party printing services and
professional fees, as well as publisher services in the
context of performance-based marketing. The pur-
chased third-party printing services also included paper
costs.
(22) Personnel expenses
The personnel expenses broke down as follows:
€ millions
Wages and salaries
Social security
Pension expenses
Expenses for share-based payments
Other benefit expenses
2015
932.8
138.2
11.8
13.3
4.2
2014
820.3
130.1
8.5
11.2
4.3
Personnel expenses
1,100.3
974.4
143
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The average number of employees in the Group is
shown below:
Salaried employees
Editors
Wage-earning employees
Total employees
2015
2014
11,572
10,457
2,730
2,771
721
689
15,023
13,917
The increase in personnel figures compared to the prior
year resulted particularly from the initial consolidation of
acquired companies and from staff increases in the
strongly growing digital business units.
other intangible assets in the prior year affected essen-
tially the Paid and Marketing Models segments. Prior-
year impairment losses in property, plant and equipment,
as well as investment property were related to the
planned sale of an office building in Hamburg, see note
(11).
Impairment losses in financial assets recognized in the
fiscal year are included in the income from investments.
(24) Other operating expenses
The other operating expenses broke down as follows:
€ millions
Advertising expenses
(23) Depreciation, amortization, and impairment
Expenses for non-company personnel
The depreciation, amortization, and impairments broke
down as follows:
€ millions
Impairment losses in goodwill
2015
0.0
2014
31.1
Amortization of other intangible assets
139.7
111.2
Impairment losses in other intangible
assets
Depreciation of property, plant, and
equipment
Impairment losses in property, plant, and
equipment
Depreciation of investment property
Impairment losses in investment property
1.9
19.4
56.9
58.2
0.3
0.9
0.0
24.9
1.4
9.4
Mailing and postage expenses
Consulting, audit and legal fees
Rental and leasing expenses
Commissions and gratuities
Maintenance and repairs
Travel expenses
Revaluation of contingent purchase price
liabilities and other put options for
purchase of non-controlling interests
Allowances for doubtful receivables
Training of employees
Services provided by related parties
Foreign exchange losses
Other taxes
2015
234.1
143.0
94.2
64.5
52.5
41.6
38.9
31.4
18.8
15.3
14.0
8.3
7.6
6.1
2014
174.3
129.5
102.7
54.0
43.7
40.6
35.4
28.3
5.7
9.8
12.4
11.4
5.9
9.0
Depreciation, amortization, and
impairments
199.8
255.6
Miscellaneous operating expenses
Other operating expenses
91.8
862.2
94.7
757.2
The increase in the amortization of other intangible as-
sets primarily resulted from increased ongoing invest-
ments as well as increased effects of purchase price
allocations.
Prior-year impairment losses in goodwill related primarily
to a reporting unit of the Marketing Models segment and
resulted from decreased business development expecta-
tions due to market conditions. Impariment losses in
The miscellaneous operating expenses included addi-
tions to provisions relating to legal and other risks, as
well as other operating expenses.
The following professional fees for the services rendered
by the auditor Ernst & Young GmbH were recognized:
144
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
€ millions
2015
2014
Audits of the annual financial statements
Other certification or appraisal services
Tax advisory services
Other services
Total professional fees
0.9
0.3
0.3
0.6
2.1
1.0
0.8
0.3
0.8
2.9
Ad Models segment, with 30 % of it being attributed to
other shareholders.
(26) Financial result
The net financial result broke down as follows:
€ millions
Interest income from bank accounts
Interest income from loans and securities
Interest income from taxes
Other interest income
Interest income
2015
1.6
14.6
1.6
5.6
23.3
2014
2.1
12.3
3.3
0.2
17.9
Interest expenses on liabilities due to banks
and on promissory note
– 16.7
– 13.7
Interest expenses on pension provisions,
less reimbursements
Interest expenses from compounding
Miscellaneous interest expenses
Interest and similar expenses
Other financial result
Financial result
– 6.8
– 4.8
– 10.7
--- 39.0
--- 6.5
– 8.9
– 7.5
– 13.9
--- 44.0
5.1
--- 22.2
--- 21.1
A total of € 20.8 million (PY: € 14.4 million) of the interest
income and € 27.1 million (PY: € – 24.1 million) of the
interest expense was allocated to financial assets and
liabilities that were not measured at fair value through
profit or loss.
(27) Income taxes
The income taxes paid or owed and the deferred taxes
are recognized under income taxes. The income taxes
consisted of the trade tax, corporate income tax, and
solidarity surcharge, and the corresponding foreign in-
come taxes. The income tax expenses are broken down
below:
The professional fees for the audit of financial statements
included the audit of the separate financial statements of
Axel Springer SE and other German subsidiaries, and the
audit of the consolidated financial statements. The other
certification and appraisal services primarily included fees
for the auditor's review of the quarterly financial state-
ments and audits to verify compliance with contractual
agreements; in the prior year, additional auditing services
in connection with the sale of our domestic print activities
in 2014 were included. The tax advisory fees were a
result of support services regarding specific tax ques-
tions. Other services consisted of due diligence services
as part of acquisitions within the fiscal year.
(25) Income from investments
The income from investments amounted to
€ 24.7 million (PY: € 81.4 million). The decline was par-
ticularly due to the results from the sale of investments
recorded in the prior year.
In addition to the current result of companies reporting
according to the equity method and the dividends re-
ceived from other associated companies, income from
investments included gains from revaluations carried out
as part of step acquisitions in the amount of
€ 21.7 million (PY: € 0.0 million), income from disposals
in the amount of € 3.7 million (PY: € 78.0 million), and
impairment losses in investments in the amount of
€ 3.7 million (PY: € 6.6 million).
The sale of our minority interest (17.2 %) held by SeLoger
in the iProperty Group Ltd., Sydney, Australia, in the prior
year resulted in a gain on disposal of € 55.1 million (be-
fore a tax effect of € 2.2 million). This amount was taken
into account as a non-recurring effect in the Classified
145
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
€ millions
Current taxes
Deferred taxes
2015
134.9
1.3
Income taxes from continued operations
136.2
Income taxes from discontinued operations
1.3
Income taxes
137.5
2014
121.1
– 42.1
78.9
257.4
336.4
The expected income tax expense – applying the tax
rate of Axel Springer SE – is reconciled to the income tax
expense recognized in the income statement as follows:
€ millions
Income before income taxes
2015
440.8
2014
314.7
Tax rate of Axel Springer SE
31.00 %
31.00 %
Expected tax expenses
Differing tax rates
Changes in tax rates
Permanent differences
Adjustments to carrying amounts of
deferred taxes
Current income taxes for prior years
Deferred income taxes for prior years
Non-deductible operating expenses
136.6
– 5.2
– 1.6
– 6.0
25.5
5.2
– 1.8
18.0
97.5
– 0.4
– 3.7
1.3
– 3.0
– 3.4
– 2.1
13.7
Tax-exempt income
– 30.6
– 23.6
Trade tax additions/deductions
Other effects
Income taxes
1.9
– 5.7
136.2
3.4
– 0.9
78.9
Companies with the legal form of a corporation domiciled
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, the profits of
these companies are subject to trade tax, for which the
amount is municipality-specific. Companies with the legal
form of a partnership are subject to trade tax exclusively.
The net income is assigned to the shareholder for pur-
poses of corporate income tax. The group tax rate re-
mains unchanged at 31.0 %.
The effects of different tax rates for partnerships and for
foreign income taxes from the tax rate applicable to Axel
Springer SE are explained in the reconciliation in the item
differing tax rates. The permanent differences result
mainly from impairment losses in goodwill and deconsol-
idation effects that are not taken into account for tax
purposes. The adjustments made to the carrying
amounts of deferred taxes included € 13.0 million (PY:
€ 5.8 million) for the non-recognition of deferred taxes on
tax loss carry-forwards. Moreover, effects from the reval-
uation of loss carry-forwards are included.
Deferred tax assets and liabilities were recognized to
account for temporary differences and tax loss carry-
forwards, as follows:
€ millions
12/31/2015
12/31/2014
Deferred
tax
assets
Deferred
tax
liabilities
Deferred
tax
assets
Deferred
tax
liabilities
Intangible assets
25.8
449.3
18.0
315.6
Property, plant, and
equipment and
investment property
Non-current financial
assets
Inventories
Receivables and other
assets
Pension provisions
Other provisions
Liabilities
Temporary
differences
Tax loss carry-
forwards
Total
Offsetting
Amounts as per
balance sheet
2.1
0.8
0.6
31.9
11.4
14.9
35.5
93.2
1.8
89.4
0.7
0.0
10.0
0.7
5.1
6.4
0.7
1.0
28.0
30.2
11.8
35.8
1.9
0.0
13.8
0.1
2.4
1.6
123.0
565.5
127.2
424.9
8.1
0.0
24.3
0.0
131.1
565.5
151.5
424.9
– 84.3
– 84.3
– 97.0
– 97.0
46.8
481.2
54.4
327.9
146
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The increase in deferred tax liabilities related to intangible
assets mainly resulted from initial consolidations that
took place during the fiscal year. The decrease in de-
ferred tax assets related to pension provisions resulted
from higher discount rates.
The net balance of deferred tax items from January 1 to
December 31, 2015 was derived as follows:
€ millions
Deferred tax assets as of January 1
2015
54.4
2014
41.2
Deferred tax liabilities as of January 1
– 327.9
– 313.5
Net tax position as of January 1
--- 273.5
--- 272.4
Deferred tax of current year
– 1.3
42.1
Changes in deferred taxes recognized in
other comprehensive income
– 11.7
39.0
Changes in consolidation group
– 151.3
– 66.9
Deferred taxes from discontinued
operations
Reclassification into assets and liabilities
held for sale
0.0
0.6
3.4
– 15.9
Net tax position as of December 31
--- 434.4
--- 273.5
Deferred tax assets as of December 31
46.8
54.4
Deferred tax liabilities as of December 31
– 481.2
– 327.9
Of the deferred tax assets, an amount of € 39.2 million
(PY: € 30.7 million), and of the deferred tax liabilities, an
amount of € 9.0 million. (PY: € 13.6 million) can be real-
ized in the short term.
The amount of deferred tax assets to be disclosed in
accordance with IAS 12.82 was € 4.4 million (PY:
€ 11.3 million). It is expected that this amount can be
realized by utilization against the available operating
income.
Deferred taxes in the total amount of € 40.9 million (PY:
€ 54.6 million) were recognized directly in equity, as they
relate to matters that were likewise recognized directly in
equity.
In the fiscal year, no deferred tax assets were recognized
with respect to corporate income tax loss carry-forwards
amounting to € 147.0 million (PY: € 109.3 million), and
with respect to trade tax loss carry-forwards amounting
to € 39.0 million (PY: € 18.6 million) because it did not
appear probable that sufficient taxable income could be
generated for these amounts in the near future. In addi-
tion, there are interest carry-forwards amounting to
€ 1.9 million (PY: € 2.3 million) for which no deferred tax
assets were recognized. Of these tax loss carry-forwards,
an amount of € 2.8 million can be carried forward for up
to five years (PY: € 5.5 million up to five years and
€ 3.3 million for six to ten years). The utilization of tax
loss carry-forwards or interest carry-forwards that had
not previously been recognized as deferred tax assets
caused a reduction in income tax expenses of
€ 0.9 million (PY: € 2.0 million). In the past fiscal year,
there were corrections of recognized tax loss carry-
forwards due to tax audits or differing tax assessments in
the amount of € 2.3 million (PY: € 2.5 million).
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 consolidat-
ed balance sheet and the corresponding investment
balance recognized in the financial statements for tax
purposes. Deferred tax liabilities were not recognized on
differences of € 9.0 million (PY: € 7.5 million) because a
realization is not planned at the present time. In the case
of sale or profit distribution, the gain on disposal or the
dividend, respectively, would be subject to taxation at 5 %
in Germany; in addition, foreign withholding taxes might
be incurred.
147
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(28) Earnings per share
The earnings per share were determined as follows:
Result of continued operations
attributable to shareholders of Axel
Springer SE
Result of discontinued operations
attributable to shareholders of Axel
Springer SE
Net income attributable to
shareholders of Axel Springer SE
€
millions
€
millions
€
millions
2015
2014
249.6
169.1
2.8
630.7
252.4
799.8
Weighted average shares outstanding
000s
99,682
98,940
Earnings per share from continuing
operations (basic/diluted)
€
2.50
1.71
Earnings per share from discontinued
operations (basic/diluted)
€
0.03
6.37
Net income attributable to
shareholders of Axel Springer SE
per share (basic/diluted)
€
2.53
8.08
(29) Other income/loss
The other income/loss broke down as follows:
2015
2014
€ millions
Before tax
Tax effect
Net
Before tax
Tax effect
Net
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
Other income/loss from investments accounted for using
the equity method
Other income/loss
36.1
60.2
12.1
0.2
– 2.6
105.9
– 11.6
0.0
0.0
– 0.1
0.0
--- 11.7
24.5
60.2
12.1
0.2
– 2.6
94.3
– 105.2
32.2
– 27.2
– 20.0
0.0
0.4
--- 152.1
0.0
6.9
0.0
0.1
39.0
– 73.0
– 27.2
– 13.1
0.0
0.4
--- 113.0
148
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the consolidated statement
of cash flows
(30) Other disclosures
The cash and cash equivalents were composed of short-
term available cash in banks, securities, cash on hand,
and checks.
Asset additions of € 7.9 million (PY: € 5.9 million) were
not yet reflected in cash. This related to additions in both
intangible assets and property, plant, and equipment.
The acquisition costs, cash payments, and purchased
assets and liabilities for business acquisitions are pre-
sented in the following table:
€ millions
Intangible assets
Property, plant, and equipment
Non-current financial assets
Trade receivables
Other assets
Cash and cash equivalents
Provisions and other liabilities
Deferred tax liabilities
Net assets
Acquisition cost (preliminary)
Thereof paid
2015
472.0
3.9
0.3
39.9
7.1
53.0
– 56.4
– 157.0
362.7
756.4
644.5
2014
300.3
6.5
6.5
31.9
19.8
48.4
– 70.7
– 82.6
260.1
651.3
523.1
The amounts from the purchases of shares in consoli-
dated subsidiaries and business units less cash and
cash equivalents acquired reported in the cash flow
statement, in addition to the cash payments and ac-
quired funds listed in the table, also include payments for
acquisitions of the previous years (in particular payments
from contingent consideration; see note (34)).
The following table provides details of sales proceeds,
paid-up amounts, and disposed assets and liabilities
arising from transactions with loss of control:
€ millions
Goodwill
Other intangible assets
Property, plant, and equipment
Non-current financial assets
Trade receivables
Other assets
Cash and cash equivalents
Provisions and other liabilities
Deferred tax liabilities
Disposal net assets
Selling price
Thereof paid-up
2015
44.5
17.7
1.9
0.2
32.0
18.1
8.4
– 42.6
– 6.4
73.9
172.5
172.5
2014
4.0
1.8
0.6
2.2
3.5
4.3
5.1
– 13.6
– 2.1
5.8
9.0
7.1
The disclosure of cash inflows from divestitures in the
cash flow statement is made under proceeds from dis-
posals of consolidated subsidiaries and business units
less cash and cash equivalents given up. The amount
recognized in the cash flow statement also includes
payments attributable to the discontinued operations
from the sale of domestic and foreign print activities.
The portion attributable to the plan assets from the ad-
vance payment received during the year with respect to
the purchase price for the sale of the publishing building
at the Hamburg site (€ 67.5 million) which was complet-
ed at the beginning of 2016 is included in the amount of
the financial transactions under the cash flow from fi-
nancing activities (see note (11) and see note (17)). This
part of the purchase price was contributed to the the
plan assets in January 2016.
Regarding cash inflows and outflows with respect to
discontinued operations see note (2d).
149
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the consolidated segment report
(31) Basic principles of segment reporting
The segment reporting reflects the internal management
and reporting structures. The reporting format is broken
down into the three operating segments, those being
Paid Models, Marketing Models, and Classified Ad Mod-
els. In addition, there is the Services/Holding segment.
Segmentation of assets, liabilities, and investments
based on the operating segments does not occur as
these measures do not serve as a basis for decision
making at segment level.
In the fiscal year, due to a change in internal reporting
the segmentation was adjusted with regard to the as-
signment of individual operational functions. As a result,
the functions of Advertising Marketing, Sales, Logistics,
Customer Service, Direct Marketing, and TV and Video
Production, which almost exclusively provide services for
the Paid Models segment, were reclassified from the
Services/Holding segment to the Paid Models segment.
Consequently, a portion of the cost and profit reclassifi-
cations between these segments was waived. In addition,
the advanced transformation of Axel Springer into a
digital publisher was taken into account through a
change of cost allocations. The segment reporting fig-
ures for the prior year were adjusted accordingly for
comparison purposes.
(a) Operating segments
All business models which predominantly generate reve-
nues in online classified advertising are summarized in
the Classified Ad Models segment. Our portfolio com-
prises leading domestic and foreign online classified
portals focusing on real estate, jobs and cars, as well as
general classifieds. Our online classifieds portals include
the real estate portals SeLoger, Immoweb, Immo-
welt/Immonet, the job portals of the StepStone Group,
the regional portal meinestadt.de, the portals of @Leisure
for holiday properties, and the car and general classified
ad portals Yad2 and LaCentrale.
The Paid Models segment comprises all business mod-
els that are primarily used by paying readers. National
Paid Models include the digital and print media of the
BILD and WELTN24 Group, the computer, car and sport
magazines of the BILD brand family, B.Z. and the music
magazines.
International Paid Models comprise Axel Springer’s digi-
tal and print media in Europe and USA. Here our main
areas of representation are in Poland, Slovakia, Serbia,
Hungary, Switzerland, Belgium and Spain. Onet.pl and
azet.sk, the leading Internet portals in Poland and Slo-
vakia, also belong to this sub-segment. Since end of
October 2015 we are represented in the USA with busi-
nessinsider.com the leading digital offering for business
and financial news.
The Marketing Models segment comprises all domestic
and foreign business models whose revenues are pri-
marily generated by advertising customers in marketing
based on performance or reach. These particularly in-
clude the performance-based activities of the Zanox
Group and the reach-based marketing offers of Idealo,
auFeminin, finanzen.net, smarthouse and Bonial.
The Services/Holding segment comprises group services
including IT, printing plants, real estate management,
gastronomy, and financial and personnel services, as
well as holding functions such as accounting, controlling,
finance, law, tax, HR, internal audit, mergers & acquisi-
tions, and communication. Group services are pur-
chased by customers within the group and are priced at
arms length.
(b) Geographical information
The activities of the Axel Springer Group are conducted
mainly in Germany, other European countries, and the
USA.
For purposes of geographical segment reporting, the
revenues are segmented according to the location of the
customer’s registered office and the non-current assets
according to the location of the legal entity.
150
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(32) 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 comprise circulation revenues
from the sale of publishing products, advertising reve-
nues, 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.
We use the performance figure EBITDA, which illustrates
earnings before interest, taxes, depreciation and amorti-
zation, as well as EBIT, which is defined as earnings
before interest and taxes, to measure segment results. In
calculating this performance figure, non-recurring effects
and effects of purchase price allocations 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 breakdown of the eliminated non-recurring effects from the EBITDA and EBIT into the segments is shown below:
€ millions
Effects from acquisitions of subsidiaries and
investments
Revaluation of contingent purchase price
liabilities and other put options for purchase
of non-controlling interests
Effects from initiated and finalized disposals
of subsidiaries, investments and real estate
Impairment on investments
Non-recurring effects
2015
2014
Classified
Ad
Models
Paid
Models
Marketing
Models
Services/
Holding
Classified
Ad
Models
Paid
Models
Marketing
Models
Services/
Holding
– 5.0
10.4
9.0
0.0
– 8.7
– 0.3
– 0.1
1.2
– 2.3
12.1
– 0.7
0.0
– 3.0
10.7
18.0
0.0
– 7.5
– 3.6
--- 18.5
64.4
0.0
86.9
27.3
0.0
35.6
– 5.1
0.0
--- 5.1
55.1
– 1.8
41.6
– 9.0
– 2.8
--- 1.5
21.8
– 1.9
37.8
– 33.7
– 0.5
--- 32.9
151
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The reconciliation of the income from investments dis-
closed in the income statement as well as the impair-
ments is shown below:
Other disclosures
(33) Capital management
€ millions
2015
2014
Income from investments included in
EBITDA
Non-recurring effects included in income
from investments
Income from investments
3.8
10.7
20.9
24.7
70.6
81.4
Depreciation, amortiza-tion, impairments
and write-ups (except from purchase price
allocations)
Thereof write-ups
Non-recurring effects from depreciation
Amortization and impairments from
purchase price allocations
Depreciation, amortization, and
impairments
– 110.0
– 112.5
– 5.0
0.0
– 6.3
– 33.0
– 84.9
– 103.9
--- 199.8
--- 255.6
The non-current segment assets include goodwill, intan-
gible assets, property, plant, and equipment as well as
investment properties.
Beyond the provisions of German law applicable to stock
corporations, Axel Springer SE is not subject to any
further obligations relating to capital preservation, wheth-
er from its own Articles of Incorporation or from contrac-
tual obligations. The financial key figures we used for
management purposes are primarily earnings-driven. The
goals, methods, and processes of our capital manage-
ment are subordinate to the earnings-driven financial key
figures.
We can utilize the funds derived from the promissory
notes (€ 637.0 million) and also avail ourselves of our
credit line (€ 1,500.0 million) both for general business
purposes as well as to finance acquisitions.
In the fiscal year, we increased the financing volume of
our credit lines and extended their terms. Besides the
promissory notes which mature in April 2016 (nominal
value of € 56.5 million), in April 2018 (nominal value of €
112.0 million), in October 2018 (nominal value of € 220.0
million) and in October 2020 (nominal value of € 248.5
million), as of the balance sheet date, there is a credit line
in the amount of € 1,500.0 million, the utilization of which
is due for repayment in July 2020. The utilization of the
credit lines is tied to compliance with covenants. Since
the existence of the credit lines we have fully complied
with all credit terms.
For the purpose of maintaining and adjusting the capital
structure, the company can adjust the dividend pay-
ments 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 the reporting date and the prior-year reporting date
we held no treasury shares.
152
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(34) Financial assets and liabilities
The balance sheet items comprising financial assets and liabilities can be attributed to the measurement categories
according to IAS 39 as follows:
€ millions
Assets 12/31/2015
Other non-current investments and securities
Loans and advances
Derivatives
Other non-current financial assets
Trade receivables
Receivables due from related parties
Derivatives
Other
Other assets
Cash and cash equivalents
Liabilities 12/31/2015
Financial liabilities
Trade payables
Liabilities due to related parties
Derivatives designated as a hedging instrument
Derivatives not designated as a hedging instrument
Contingent consideration
Other
Other liabilities
Assets 12/31/2014
Other non-current investments and securities
Loans and advances
Derivatives
Other non-current financial assets
Trade receivables
Receivables due from related parties
Derivatives
Other
Other assets
Cash and cash equivalents
Liabilities 12/31/2014
Financial liabilities
Trade payables
Liabilities due to related parties
Derivatives designated as a hedging instrument
Derivatives not designated as a hedging instrument
Contingent consideration
Other
Other liabilities
Carrying
amount
Loans and
receiv-
ables
Financial
liabilities
Available-
for-sale
financial
assets
Financial
assets and
liabilities
held for
trading
No category
according to
IAS 39 and
non financial
assets and
liabilities
300.5
300.5
570.9
7.2
43.7
43.7
253.8
288.5
288.5
523.8
13.0
112.0
112.0
383.1
1,251.5
343.1
10.7
372.2
372.2
1,049.0
313.5
9.2
101.7
101.7
66.7
66.7
34.4
34.4
203.8
203.8
5.1
5.1
54.6
54.6
259.1
259.1
0.5
0.5
43.6
43.6
79.4
79.4
1.4
13.1
0.7
307.8
314.5
623.0
30.6
52.1
52.1
2.0
7.7
0.9
266.4
286.5
553.8
66.7
300.5
203.8
571.0
570.9
7.2
5.1
123.1
128.3
253.8
1,252.9
343.1
23.7
0.7
54.6
307.8
686.7
1,049.8
34.4
288.5
259.1
582.0
523.8
43.6
0.5
164.1
164.6
383.1
1,050.9
313.5
16.9
0.9
43.6
266.4
388.2
699.2
153
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
With the exception of the following financial assets and liabilities, the valuation is at amortized cost.
12/31/2015
12/31/2014
Fair value
based on
market price
(level 1)
Fair value
based on
observable
market data
(level 2)
Fair value not
based on
observable
input factors
(level 3)
Fair value
based on
market price
(level 1)
Fair value
based on
observable
market data
(level 2)
Fair value not
based on
observable
input factors
(level 3)
5.1
0.7
54.6
14.2
203.8
307.8
0.5
0.9
43.6
0.0
259.1
266.4
€ millions
Other non-current investments and
securities
Derivatives not designated as a
hedging instrument (positive fair
value)
Derivatives designated as a hedging
instrument (negative fair value)
Derivatives not designated as a
hedging instrument (negative fair
value)
Contingent consideration
The fair values of contingent considerations developed as follows:
€ millions
January, 1
Acquisitions or granting of option rights
Divestment
Payment
Revaluation affecting net income
Thereof other operating income
Thereof other operating expenses
Compound
Other
December, 31
Thereof
Car&Boat
Media
Thereof
Immoweb
Thereof
Bonial
Holding
82.2
0.0
– 3.4
9.8
9.8
1.3
57.5
0.0
52.8
2.8
2.8
0.8
2015
266.4
74.2
– 0.6
– 39.2
3.1
– 16.3
19.4
3.9
0.3
Thereof
Onet
55.6
Thereof
Car&Boat
Media
0.0
80.3
2014
178.7
134.6
0.0
– 2.3
– 27.4
– 11.0
– 11.0
– 26.2
– 32.0
0.6
5.8
6.6
0.0
1.9
Thereof
Immoweb
Thereof
Onet
53.7
67.1
– 2.0
– 11.0
– 11.0
1.5
2.3
2.3
1.5
307.8
89.8
61.2
52.8
42.9
266.4
82.2
57.5
55.6
The fair value measurement of the contingent considera-
tions depends primarily on the estimated results of the
acquired companies in the years prior to the possible
exercise dates of the options or the payment dates of
the earn-outs. The earnings indicators used as a basis
for measurement are generally EBITDA figures adjusted
for non-recurring effects. In case of an increase of the
relevant earnings measures by 10 %, the value of the
contingent consideration would increase by approxi-
mately 8 %. A decrease of the relevant earnings
measures by 10 % would result in a reduction by ap-
proximately 7 %.
154
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
With the exception of the financial liabilities presented
below, the carrying amounts of the financial assets and
liabilities were identical to their fair values.
€ millions
12/31/2015
12/31/2014
Carrying
amount Fair value
Carrying
amount Fair value
Financial liabilities
1,251.5
1,259.6
1,049.0
1,062.3
Thereof
promissory note
Thereof due to
banks
632.9
641.0
631.7
645.0
618.6
618.6
417.2
417.2
The fair value disclosed is determined on the basis of the
advantage of the contractually agreed fixed interest rate
over the market interest rate (level 2 of the fair meas-
urement hierarchy, see note (3g)).
The net gains and losses of financial instruments (exclud-
ing interest and dividends) recognized in the income
statement are presented in the following table.
€ millions
Loans and receivables, financial liabilities
2015
3.8
2014
19.7
Available-for-sale financial assets
14.7
– 186.9
Financial assets and liabilities held for
trading
– 22.1
240.8
The net gains and losses in the categories of “loans and
receivables” and “financial liabilities” consisted mainly of
the result from the currency translation and valuation al-
lowances.
The net gains or losses of available-for-sale financial assets
consisted mainly of the gains and losses from the disposal
of these financial assets and impairments.
The net gains and losses in the category of “financial assets
and liabilities held for trading” mostly resulted from valua-
tion changes and other expenses for financial derivatives
assigned to this category.
In the fiscal year, positive fair value changes of € 12.4
million (PY: € 27.0 million) before taxes were recognized
directly in equity. Related to the sale of our investment in
iProperty (see note (12f)) the unrealized gains recorded in
other comprehensive income amounting to € 47.0 million
before taxes were reclassified into the income statement in
the context of income recognition in the prior year.
(35) Financial risk management
With respect to its financial assets and liabilities, the Axel
Springer Group is exposed to financial market risks,
liquidity risks, and credit risks. The task of financial risk
management is to limit these risks by means of targeted
measures.
(a) Financial market risks
Financial market risks for financial assets and liabilities
mainly consist of interest rate risks and exchange rate
risks.
In principle, the effects of these risks on the value can be
assessed promptly and, where applicable, the loss risks
can be reduced.
Selected derivative hedging instruments are used to
hedge risks. The use of financial derivatives is governed
by appropriate guidelines of the Group. These guidelines
define the relevant responsibilities, permissible actions,
reporting requirements and business partner limit, and
prescribe the strict separation of trading and back-office
functions.
To hedge the interest rate risk, we employ in particular
interest rate derivatives such as interest rate swaps, in
addition to increased use of fixed-interest agreements.
The degree of hedging specified in the Axel Springer
finance regulations ranges between 30 % and 100 % of
the underlying transaction volume. The use of fixed-inter-
est agreements and interest rate derivatives resulted in
an annual average hedging ratio regarding the gross
indebtedness (promissory note and bank liabilities) of
46.6 % (PY: 56.0 %).
155
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The effects of market interest rate changes on variable-
interest financial instruments not hedged with financial
derivatives are calculated using a sensitivity analysis.
Assuming a parallel shift in the yield curve of +50 basis
points, the financial result would decrease by € 3.0 mil-
lion (PY: € 2.7 million). Assuming a parallel shift in the
yield curve of –50 basis points, the financial result would
improve by less than € 0.1 million (PY: € 2.7 million). The
financial result is less sensitive to interest rate fluctuations
on variable-interest financial instruments with an agreed
minimum interest rate.
Currency risks from operations are mainly avoided
through the occurrence of operating costs in the coun-
tries in which we sell our products and services. Remain-
ing currency risks from operations are insignificant to the
Group since the majority of EBITDA is earned in the euro
currency zone. In the reporting period, the share of
EBITDA not earned in euros was 23 % (PY: 20 %).
Currency risks from claims and liabilities (without contin-
gent compensation) denominated in foreign currency as
well as claims and liabilities in euros in non-euro coun-
tries with net exposures starting at € 5 million per foreign
currency are hedged by means of maturity-congruent
forward exchange transactions.
Local-currency cash flows generated in non-euro zone
countries are either reinvested to expand local business
operations, or invested with Axel Springer SE and
hedged by means of forward exchange deals or distrib-
uted in the form of dividends. Therefore, the foreign
exchange risk from fluctuating exchange rates for foreign
currency cash and cash equivalents is limited.
Effects from the currency translation of statements pre-
pared by subsidiaries in foreign currencies are recorded
directly in accumulated other comprehensive income.
Therefore, Axel Springer does not hedge such currency
effects.
(b) Liquidity risk
We continually monitor the availability of financial re-
sources to fund the company’s operating activities and
investments by means of a Group-wide liquidity plan-
ning system and monthly cash flow analyses. Liquidity
and financial flexibility of the Axel Springer Group is
ensured by fixed credit lines in the amount of € 1,500.0
million (until 2020) as well as by the promissory note (€
637.0 million). Note (18) contains a maturity analysis of
our financial liabilities. The payment obligations for fi-
nancial obligations that have been contractually agreed
but not yet recorded are presented in note (40).
(c) Credit risk
Financial assets may be impaired if business partners do
not adhere to payment obligations. The maximum expo-
sure to risk from financial assets, which are fundamental-
ly subject to credit risk, correspond to their carrying
amounts.
Significant risk items are contained in non-current finan-
cial assets (loans) as well as in trade receivables, receiv-
ables due from related parties, and other assets.
The majority of our business models are based on a
widely distributed and heterogeneous customer base.
We therefore estimate the risk of significant defaults to
be low. To the extent that credit risks are discernible, we
reduce them using active management of receivables,
credit limits, and credit checks of our business partners.
Appropriate allowances are formed to account for dis-
cernible default risks.
In connection with the sale of regional newspapers, TV
program guides, and women's magazines we granted a
multi-year, subordinated loan to FUNKE Mediengruppe
in the amount of € 255.8 million. Currently, we do not
see any default risk. For collateralization purposes, our
business partners granted second-tiered securities re-
garding their assets.
Investments in securities are made only in instruments
with first-class ratings according to our finance regula-
tions. Investment in time deposits occurs exclusively at
financial institutions that belong to the deposit protection
fund and/or are classified by leading rating agencies as
being at least of Investment Grade Status BBB- (S&P) or
Baa3 (Moody’s).
156
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(36) Financial derivatives
(a) Financial derivatives designated as hedging
instruments
In the reporting period, designated hedging instruments
were used in particular to hedge against the interest rate
risks of long-term liabilities. The cash flows were hedged
through an interest rate swap. Regarding maturity and
nominal amount the interest rate swap was chosen to
match the corresponding tranches of the variable-
interest loans (underlying transaction). The interest rate
swap was measured at fair value. The changes in the fair
value were recognized in accumulated other compre-
hensive income until the hedged item was realized.
The fair value measurement of the interest rate swap on
the reporting date yielded negative fair values of € – 0.7
million (PY: € – 0.9 million). During the reporting period a
profit of € 0.2 million was recorded in other comprehen-
sive income (PY: less than € 0.1 million).
In addition, designated hedging instruments were used
to hedge against currency risks from purchase price
payments for company acquisitions in foreign currency.
Unrealized gains of € 7.9 million (PY: € 2.8 million) from
foreign exchange transactions and currency options
realized during the year were initially recorded in other
equity to hedge purchase price payments and were
included in acquisition costs of the acquired non-financial
assets. On the reporting date, there were no further
derivatives designated as hedging instruments (PY: neg-
ative fair value of less than € – 0.1 million).
(b) Financial derivatives not designated as
hedging instruments
As of December 31, 2015 forward exchange transac-
tions with a negative fair value of € – 54.6 million and a
positive fair value of € 5.1 million (PY: negative fair value
of € – 43.6 million, positive fair value of € 0.5 million)
were recorded; these were entered in order to secure
ourselves against currency risks arising from loans from
foreign subsidiaries or a liability from contingent consid-
eration. The nominal value of the hedged transactions
amounted to € 479.6 million (PY: € 461.2 million). The
profits and losses from the fair value measurement of
these forward exchange transactions, as well as the
opposite profits and losses from the foreign currency
measurement of the hedged loan claims and obligations
were recognized.
In order to secure our investment in Do⁄an TV, we con-
cluded several put options for a successive sale of all
shares with the seller. With regard to the accounting of
this hedging agreement see note (7b). Beside the agreed
fixed price secured by bank guarantees, the valuation of
the derivatives depends in particular on the discount rate.
A supposed variation of 25 basis points would alter the
valuation recorded within the income from investments
by € 1.9 million.
(37) Relationships with related parties
Related parties are defined as those persons and com-
panies that control the Axel Springer Group, or that are
controlled, jointly managed, or subject to significant
influence by the Axel Springer Group. Accordingly, the
members of the Springer family, the companies con-
trolled, jointly managed, or subject to significant influence
by this family, as well as companies in whose manage-
ment they hold a key position have been defined as
related parties for the Axel Springer Group. Control of the
Group is exercised by Axel Springer Gesellschaft für
Publizistik GmbH & Co. or its parent company, Friede
Springer GmbH & Co. KG, a majority of which is attribut-
able to Dr. h. c. Friede Springer. In addition, the subsidi-
aries, joint ventures, and associated companies of the
Axel Springer Group have been defined as related com-
panies. In addition to the active members of the Execu-
tive Board and Supervisory Board of Axel Springer SE
(including their family members) and their majority hold-
ings, the institutions managing the plan assets of the
Axel Springer Group must also be considered related
parties.
157
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Besides the business relationships with the consolidated subsidiaries, the following business relationships existed with
related parties:
€ millions
Balance sheet
Loans
Receivables
Thereof trade
Allowances included
Provisions
Liabilities
Thereof trade
Income statement
Goods and services supplied
Goods and services received
Financial result
Total
Associated
companies
Other related
parties
Total
Associated
companies
Other related
parties
12/31/2015
12/31/2014
6.4
7.2
6.3
26.5
11.4
23.7
4.7
2015
19.6
45.3
1.0
5.3
2.7
2.6
7.7
0.0
3.3
2.7
15.4
16.3
0.9
1.0
4.5
3.7
18.9
11.4
20.5
2.0
4.3
29.0
0.1
6.3
43.6
8.4
24.1
11.4
16.9
3.6
2014
18.6
58.5
0.9
5.5
36.9
2.9
2.9
0.0
1.5
1.5
15.3
18.6
0.9
0.8
6.7
5.4
21.1
11.4
15.4
2.1
3.2
39.9
0.0
With regard to discontinued operations, services were
rendered amounting to € 28.3 million and services were
received amounting to € 1.8 million in the prior year.
The changes in the allowances for receivables due to
related parties are presented in the table below:
not fulfill their payment obligations. The receivables due
from associated companies included a reimbursement
right for pension obligations in the amount of € 30.6
million, in the fiscal year the reimbursement right for
pension obligations was recorded under other financial
assets in the amount of € 27.4 million (see note (14)).
€ millions
Balance as of January 1
Additions
Utilization
Reversals
Other changes
Balance as of December 31
2015
24.1
6.0
– 3.5
0.0
0.0
26.5
2014
25.7
4.5
– 4.5
– 1.5
– 0.2
24.1
As of December 31, 2015, receivables in the amount of
€ 1.7 million (PY: € 34.8 million) were neither past due
nor subject to valuation allowances. With regard to these
receivables, there were no indications at the reporting
date that would suggest that the related parties would
The provisions referred to pension obligations owed to
members of the Executive Board. The liabilities include
obligations from share-based remuneration owed to
members of the Executive Board in the amount of € 13.0
million (PY: € 7.7 million).
Goods and services provided to related companies were
mostly related to the distribution of newspapers and
magazines. The services received from related compa-
nies mainly comprised purchased publishing products
and printing services. A master agreement for the print-
ing of magazines is in effect with PRINOVIS, as in the
prior year. Under this agreement, services in the amount
of € 10.0 million (PY: € 15.4 million) were rendered for
companies of the Axel Springer Group. In mid-December
158
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
2015, we sold our shares in PRINOVIS Ltd. & Co KG,
Hamburg.
(39) Contingent assets
In 2015, the fixed compensation of the members of the
Executive Board of Axel Springer SE amounted to € 8.7
million (PY: € 8.9 million). The variable compensation
amounted to € 10.2 million (PY: € 8.9 million). The
measurement of the share-based compensation granted
to the Executive Board of Axel Springer SE gave rise to
personnel expenses of € 5.6 million (PY: € 3.6 million).
Guaranteed pension payments to members of the Exec-
utive Board resulted in a personnel expense of € 0.8
million in fiscal year 2015 (PY: € 0.5 million).
The compensation of the members of the Supervisory
Board amounted to € 3.0 million (PY: € 3.0 million). A
Supervisory Board member received compensation of
€ 0.1 million for services as an author (PY: € 0.1 million).
The compensation of the members of the Executive and
Supervisory Board is described in detail in the compen-
sation report, which is part of the notes to the consoli-
dated financial statements. The compensation report is
included in the section “Corporate Governance Report”.
An amount of € 2.7 million (PY: € 2.6 million) was paid to
former Executive Board members and special directors
and their survivors. A total amount of € 34.2 million (PY:
€ 37.2 million) was reserved for pension obligations.
For transactions with the institutions managing the plan
assets of the Axel Springer Group, see the expla-nations
in note (14).
(38) Contingent liabilities
As of December 31, 2015, contingent liabilities from
guarantees existed in the amount of € 40.3 million (PY: €
49.0 million). This includes the guarantee granted in
connection with the sale of our print activities to FUNKE
Mediengruppe (see note (2d)).
Contingent assets were due from KirchMedia GmbH &
Co KGaA i. L. in the amount of € 221.0 million (PY:
€ 240.5 million). Insofar as advance payments are an-
nounced in the context of the insolvency proceedings
against KirchMedia GmbH & Co. KGaA i.L., we recog-
nize them as receivables. The receivables accepted in
the table of claims by the insolvency administrator origi-
nally totaled € 325.0 million. A total of € 29.3 million (PY:
€ 6.5 million) was paid out in the reporting year.
(40) Other financial commitments
The other financial commitments broke down as follows:
€ millions
12/31/2015 12/31/2014
Purchase commitments for
- intangible assets
- property, plant, and equipment
- inventories
1.2
25.4
24.9
Future payments under operating leases
202.1
Future payments under finance leases
Long-term purchase obligations
1.5
53.9
3.0
3.3
17.4
158.9
2.2
68.0
Other financial obligations
309.0
252.9
Long-term purchase obligations resulted primarily from
contracts for TV productions.
In the prior year, the finance leases for the office building,
which was reclassified as assets held for sale, were not
included as a commitment, as they are to be terminated
at the estimated time of disposal.
159
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The future minimum lease payments from operating
leases on December 31, 2015 are broken down in the
following table:
€ millions
Due in up to one year
Due in one to five years
Due in more than five years
Total
2015
55.0
117.9
29.2
202.1
2014
47.1
94.3
17.5
158.9
(41) Events after the reporting date
At the beginning of January 2016, the formation of a joint
venture agreed in September 2015 in a contract be-
tween Ringier and Axel Springer was completed in Swit-
zerland (for further details see note (2c)).
In January 2016, the sale of our investment in CarWale,
an Indian online car portal, agreed in November 2015
was completed (see note (2c)).
The sale of the first part of the publishing building in
Hamburg was also completed in January 2016 (see note
(11) and note (17)).
The Executive Board and Supervisory Board decided in
December 2014 to prepare to change Axel Springer SE
into a partnership limited by shares (KGaA). Following a
detailed examination of the conversion, the company
and Dr. h.c. Friede Springer came to the conclusion in
February 2016 that the legal form of the SE is the better
alternative for the long-term development of the compa-
ny and its attractiveness for the capital market. Accord-
ingly, Axel Springer SE has decided not to pursue the
planned change of the company into a KGaA. Axel
Springer SE continues to pursue the objective of the
growth trend in becoming the leading digital publisher
and will make use of other suitable capital raising options
where necessary.
There are no further significant events after the reporting
date to be reported.
(42) Declaration of Conformity with the German
Corporate Governance Code
Axel Springer SE published the Declaration of Conformity
with the German Corporate Governance Code issued by
the Management Board and Supervisory Board in ac-
cordance with Section 161 of the German Stock Corpo-
rations Act (AktG) on the company’s website
www.axelspringer.de → Investor Relations → Corporate
Governance, where it is permanently available to share-
holders. The Declaration of Conformity is also printed in
the Corporate Governance section of this Annual Report.
160
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
(43) Companies included in the consolidated financial statements and share property
No. Company
1
Axel Springer SE, Berlin
Fully consolidated subsidiaries
Germany
AS Osteuropa GmbH, Berlin
AS TV-Produktions- und Vertriebsges. mbH, Hamburg
Axel Springer All Media GmbH & Co. KG, Berlin
Axel Springer Asia GmbH, Hamburg
Axel Springer Auto-Verlag GmbH, Hamburg
Axel Springer Digital Classifieds GmbH, Berlin
Axel Springer Digital Classifieds Holding GmbH, Berlin
Axel Springer Digital GmbH, Berlin
2
3
4
5
6
7
8
9
10
Axel Springer Digital Ventures GmbH, Berlin
11
Axel Springer Druckhaus Spandau GmbH & Co. KG, Berlin
12
Axel Springer Financial Media GmbH, Munich
13
Axel Springer ideAS Engineering GmbH, Berlin
14
Axel Springer ideAS Ventures GmbH, Berlin
15
Axel Springer International GmbH, Berlin
16
Axel Springer International Holding GmbH, Berlin
Segment
-
Paid Models
Marketing Models
Paid Models
Paid Models, Marketing Models
Paid Models
Classified Ad Models
Classified Ad Models
Services/Holding
Services/Holding
Services/Holding
Paid Models
Services/Holding
Services/Holding
Services/Holding
Services/Holding
17
Axel Springer Kundenservice GmbH (previously ASV Direktmarketing GmbH), Hamburg
Paid Models
18
Axel Springer Media Logistik GmbH, Berlin
19
Axel Springer Mediahouse Berlin GmbH, Berlin
20
Axel Springer Medien Accounting Service GmbH, Berlin
21
Axel Springer Offsetdruckerei Ahrensburg GmbH & Co. KG, Ahrensburg
22
Axel Springer Offsetdruckerei Kettwig GmbH & Co. KG, Essen
23
Axel Springer Services & Immobilien GmbH, Berlin
24
Axel Springer Syndication GmbH, Berlin
25
Axel Springer TV Productions GmbH, Hamburg
26
"Axel Springer Verlag" Beteiligungsgesellschaft mbH, Berlin
27
Axel Springer Vertriebsservice GmbH, Hamburg
28 B.Z. Ullstein GmbH, Berlin
29 Bilanz Deutschland Wirtschaftsmagazin GmbH, Hamburg
30 BILD GmbH & Co. KG, Berlin
Paid Models
Paid Models
Services/Holding
Services/Holding
Services/Holding
Services/Holding
Paid Models
Marketing Models
Services/Holding
Paid Models
Paid Models
Paid Models
Paid Models
31 Bonial Enterprises GmbH & Co. KG, Berlin
Marketing Models
32
Bonial Holding GmbH (previously Achtzigste "Media"
Vermögensverwaltungsgesellschaft mbH), Berlin
33 Bonial International GmbH, Berlin
34
Bonial Management GmbH (previously Einundachtzigste "Media"
Vermögensverwaltungsgesellschaft mbH) , Berlin
Marketing Models
Marketing Models
35 Buch- und Presse-Großvertrieb Hamburg GmbH & Co. KG, Hamburg
Paid Models
36 Casamundo GmbH, Hamburg
37 Commerz-Film GmbH, Berlin
38
comparado GmbH, Lüneburg
39 COMPUTER BILD Digital GmbH, Hamburg
40 Content Factory TV-Produktion GmbH, Berlin
41
eprofessional GmbH, Hamburg
42
finanzen.net GmbH, Karlsruhe
43 Gofeminin.de GmbH, Köln
Classified Ad Models
Marketing Models
Marketing Models
Paid Models
Paid Models
Marketing Models
Marketing Models
Marketing Models
161
12/31/2015
12/31/2014
Share-
holding
in %
-
Share-
holding
in %
-
via
No.
-
via
No.
-
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
100.0
100.0
100.0
100.0
100.0
100.0
100.0
16
100.0
1
1
100.0
-
16
100.0
1
9
7
1
9
1
1
26
26
1
15
1
1
1
1
1
1
1
100.0
85.0
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
16
1
-
16
1
9
7
1
9
-
1
26
26
1
15
1
1
1
1
-
-
1
26
100.0
26
1
1
1
26
26
1
32
100.0
100.0
100.0
100.0
100.0
100.0
65.0
6)
5)
5)
5)
5)
5)
6)
5)
5)
5)
5)
5)
5)
5)
6)
6)
5)
5)
5)
5)
5)
5)
5)
6)
6) 4)
9)
6)
5)
5)
10)
1
1
1
26
26
1
9
1
1
1
1
-
16
46
1
76
78
10
89
100.0
100.0
78.1
100.0
100.0
100.0
100.0
100.0
100.0
75.0
100.0
32
32
1
83
16
46
1
76
78
10
89
87.4
100.0
78.1
-
100.0
100.0
100.0
100.0
100.0
75.0
100.0
Marketing Models
72.5
9
100.0
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
No. Company
44
hamburg.de GmbH & Co. KG, Hamburg
45
Idealo International GmbH, Berlin
46
Idealo Internet GmbH, Berlin
47
Immonet GmbH, Hamburg
48
ImmoSolve GmbH, Bad Bramstedt
49
Immowelt AG, Nuremberg
50
Immowelt Holding AG, Nuremberg
51
ims Internationaler Medien Service GmbH & Co. KG, Hamburg
52 Maz&More TV-Produktion GmbH, Berlin
53
Media Impact GmbH & Co. KG
(previously Axel Springer Media Impact GmbH & Co. KG), Berlin
54 meinestadt.de GmbH, Cologne
55 meinestadt.de Holding GmbH, Berlin
56 meinestadt.de Vertriebs-GmbH, Cologne
57 MeinProspekt GmbH, Munich
58
PACE Paparazzi Catering & Event GmbH, Berlin
59
Panther Holding GmbH, Berlin
60 Room 49 GmbH, Berlin
61
Sales Impact GmbH & Co. KG, Hamburg
62
Shop Now GmbH, Berlin
63
Smarthouse Media GmbH, Karlsruhe
64
Sohomint GmbH i.L., Hamburg
65
StepStone Deutschland GmbH, Düsseldorf
66
StepStone GmbH, Berlin
67
Talpa Germany GmbH & Co. KG, Hamburg
68
thads.media vermarktungs GmbH & Co. KG
(previously thads.media vermarktungs gmbh), Berlin
69
Transfermarkt GmbH & Co. KG, Hamburg
70 Ullstein Ges. mit beschränkter Haftung, Berlin
Segment
Marketing Models
Marketing Models
Marketing Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Services/Holding
Paid Models
Paid Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Marketing Models
Services/Holding
Marketing Models
Marketing Models
Paid Models
Marketing Models
Marketing Models
Marketing Models
Classified Ad Models
Classified Ad Models
Marketing Models
Paid Models
Paid Models
Paid Models
71 Umzugsauktion GmbH & Co. KG, Schallstadt
Classified Ad Models
72
upday GmbH & Co. KG, Berlin
73
upday Holding GmbH, Berlin
74
Vertical Media GmbH, Berlin
75
Visual Meta GmbH, Berlin
76 WeltN24 GmbH, Berlin
77
YOURCAREERGROUP GmbH, Düsseldorf
78
ZANOX AG, Berlin
79
Zuio GmbH, Berlin
Other countries
Paid Models
Paid Models
Paid Models
Marketing Models
Paid Models
Classified Ad Models
Marketing Models
Marketing Models
80
"Axel Springer Russia" Geschlossene Aktiengesellschaft, Moscow, Russia
Paid Models
81 @Leisure BR B.V., Eindhoven, Netherlands
82 @Leisure Holding B.V., Rotterdam, Netherlands
83 @Leisure NH B.V., Amsterdam, Netherlands
84
alFemminile s.r.l., Milan, Italy
85
Amiado Group AG, Zurich, Switzerland
86
Amiado Online AG, Zurich, Switzerland
87
APM Print d.o.o., Belgrade, Serbia/Kosovo
88
AS-NYOMDA Kft, Kecskemét, Hungary
89
AUFEMININ SA, Paris, France
Classified Ad Models
Classified Ad Models
Classified Ad Models
Marketing Models
Paid Models
Paid Models
Paid Models
Paid Models
Marketing Models
162
12/31/2015
12/31/2014
Share-
holding
in %
Share-
holding
in %
via
No.
61.9
100.0
74.9
100.0
51.0
100.0
55.0
-
9
46
9
50
47
50
8
-
61.9
100.0
74.9
88.7
51.0
-
-
55.0
100.0
76
100.0
74.9
1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
-
91.0
-
100.0
100.0
-
100.0
51.0
100.0
100.0
100.0
100.0
88.0
75.6
100.0
100.0
52.5
100.0
-
100.0
51.0
100.0
100.0
-
-
74.9
25.1
100.0
79.5
55
8
54
33
1
46
14
1
-
10
-
66
8
-
4
30
26
47
1
72
76
46
1
66
9
26
-
82
9
82
89
-
-
177
153
155
16
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
90.0
91.0
72.6
100.0
100.0
50.1
100.0
51.0
100.0
100.0
-
-
88.0
76.0
100.0
100.0
52.5
100.0
100.0
-
-
-
100.0
100.0
100.0
74.9
25.1
100.0
80.8
via
No.
6)
9
46
9
8
47
9)
9)
5)
6)
-
-
1
76
1
55
8
54
33
5)
1
46
14
1
14
10
1
66
8
25
76
30
26
47
-
-
76
46
1
66
9
5)
6)
5)
5)
6)
6)
5)
6)
6)
9)
5)
5)
26
5)
2
-
-
-
89
99
85
177
153
155
16
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
12/31/2015
12/31/2014
No. Company
90
auFeminin.com Productions SARL, Paris, France
91
Automotive Exchange Private Limited, Mumbai, India
92
Axel Springer Digital Classifieds France SAS, Paris, France
93
Axel Springer España S.A., Madrid, Spain
94
Axel Springer France S.A.S., Paris, France
95 Axel Springer IdeAS Polska Sp. z o. o., Wroclaw, Poland
96
Axel Springer International AG, Zurich, Switzerland
97
Axel Springer International Limited, London, Great Britain
98
Axel Springer Norway AS, Oslo, Norway
99
Axel Springer Switzerland AG, Zurich, Switzerland
100 Azet.sk a.s., Zilina, Slovakia
101 Belles Demeures S.A.S., Paris, France
102 Belvilla Ferienwohnungen GmbH, Kitzbühel, Austria
103 Blikk Kft., Budapest, Hungary
104 Bonial Enterprises North America Inc., New York, USA
105 Bonial SAS, Paris, France
106 Business Insider Europe Limited, London, Great Britain
107 Business Insider Inc., New York City, USA
108 Candidate Manager (US) Inc, Boston, USA
109 Candidate Manager Ltd, Dublin, Ireland
110 Car&Boat Media SAS, Paris, France
111 CaribbeanJobs Ltd, George Town, Cayman Islands
112 Coral-Tell Ltd., Tel Aviv, Israel
113 Digital Window Inc., Wilmington, USA
114 Digital Window Limited, London, Great Britain
115 DreamLab Onet.pl sp. z o.o., Krakow, Poland
116 enFemenino SARL, Madrid, Spain
117 Etoilecasting.com SAS, Paris, France
118 Gambettes Box SAS, Paris, France
119 Garantie System SAS, Paris, France
120 GoBrands Sp. z o.o., Krakow, Poland
121 Grupa Onet.pl SA, Krakow, Poland
122
ictjob SPRL, Waterloo, Belgium
123
Immoweb SA, Brussels, Belgium
Segment
Marketing Models
Classified Ad Models
Classified Ad Models
Paid Models
Paid Models
Services/Holding
Paid Models
Paid Models
Services/Holding
Paid Models
Paid Models
Classified Ad Models
Classified Ad Models
Paid Models
Marketing Models
Marketing Models
Paid Models
Paid Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Marketing Models
Marketing Models
Paid Models
Marketing Models
Marketing Models
Marketing Models
Classified Ad Models
Paid Models
Paid Models
Classified Ad Models
Classified Ad Models
124
Interactive Junction Holdings Proprietary Limited, Rosebank/Johannesburg, South Africa
Classified Ad Models
125 Jobs LU Ltd, Dublin, Ireland
126 Jobs.ie Ltd, Dublin, Irleand
Classified Ad Models
Classified Ad Models
Share-
holding
in %
100.0
90.3
100.0
100.0
100.0
99.0
1.0
100.0
100.0
100.0
100.0
80.0
100.0
50.0
100.0
100.0
100.0
100.0
96.5
100.0
100.0
51.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0
1.0
80.0
100.0
100.0
100.0
Share-
holding
in %
100.0
91.3
100.0
100.0
100.0
99.0
1.0
100.0
100.0
100.0
100.0
70.0
100.0
-
via
No.
89
5
8
1
1
13
1
97
16
97
1
159
150
11)
-
100.0
157
via
No.
89
5
8
1
1
13
1
97
16
97
1
159
150
81
157
31
33
107
10
109
162
8
-
100.0
-
-
100.0
100.0
51.0
162
100.0
8
100.0
114
78
121
89
89
134
110
121
143
66
171
92
162
162
162
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
-
-
80.0
-
100.0
100.0
-
100.0
50.0
50.0
100.0
-
-
33
-
-
109
162
9)
8
162
8
114
78
121
89
89
134
110
121
143
-
-
92
9)
-
162
162
174
-
89
121
158
89
-
127
Jobsite UK (Worldwide) Limited (previously Evenbase Recruitment Ltd.), London,
Great Britain
Classified Ad Models
100.0
174
100.0
128 Livingly Media, Inc., San Carlos, USA
129 Marmiton SAS, Paris, France
130 Media Impact Polska Sp. z o.o., Warsaw, Poland
131 Merci Alfred S.A.S., Paris, France
132 My Little Box KK, Tokyo, Japan
133 My Little Campus SAS, Paris, France
134 My Little Paris S.A.S., Paris, France
100.0
100.0
50.0
50.0
100.0
100.0
100.0
70.0
89
89
121
158
89
134
134
89
Marketing Models
Marketing Models
Paid Models
Marketing Models
Marketing Models
Marketing Models
Marketing Models
163
100.0
134
60.0
89
9)
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
No. Company
135 My Web Ltd, Ebene, Mauritius
136 MyJob Group Ltd, Sheffield, Great Britain
137 NARKS INFOSERVIS, a.s., Bratislava, Slovakia
138 Netmums Limited, London, Great Britain
139 New Digital d.o.o. Belgradee, Belgrade, Serbia/Kosovo
140 NIJobs.com Ltd, Belfast, Ireland
141 NIN d.o.o., Belgrade, Serbia/Kosovo
142 ofeminin.pl Sp. z o.o., Warsaw, Poland
143 ONET Holding Sp. z o.o., Warsaw, Poland
144 OnetM Sp. z o.o., Krakow, Poland
145 OnetMarketing Sp. z o.o., Krakow, Poland
OnetMarketing Sp. z o.o., Krakow, Poland
146 Opineo Sp. z o.o., Wroclaw, Poland
147 Pnet (Pty) Ltd, Johannesburg, South Africa
148 Poliris S.A.S., Paris, France
149 Praxis SARL, Chambéry, France
150 PressImmo On Line S.A.S., Paris, France
151 profession.hu Kft, Budapest, Hungary
152 RAS Online d.o.o., Belgrade, Serbia/Kosovo
153 Ringier Axel Springer d.o.o., Belgrade, Serbia/Kosovo
154 Ringier Axel Springer Inwestycje Sp. z o.o., Warsaw, Poland
155 Ringier Axel Springer Magyarország Kft, Budapest, Hungary
156 Ringier Axel Springer Management AG, Zurich, Switzerland
157 Ringier Axel Springer Media AG, Zurich, Switzerland
158 Ringier Axel Springer Polska Sp. z o.o., Warsaw, Poland
159 Ringier Axel Springer Slovakia a.s., Bratislava, Slovakia
160
runtastic GmbH, Pasching, Austria
161 Saknai Net Ltd., Tel Aviv, Israel
162 Saongroup Limited, Dublin, Ireland
163 Seloger Solutions SAS (previously Diagorim SAS), Paris, France
164 SeLoger.com SAS, Paris, France
165 Skapiec Sp. z o.o., Wroclaw, Poland
166 SmartAdServer SAS, Paris, France
167 soFeminine.co.uk Limited, London, Great Britain
168 SOKOWEB TECHNOLOGIES, S.L., Barcelona, Spain
169 StepStone B.V., Leiden, Netherlands
170 StepStone France SAS, Paris, France
171 StepStone NV, Brussels, Belgium
172 StepStone Österreich GmbH, Vienna, Austria
173 StepStone Services Sp. z o.o., Warsaw, Poland
174 StepStone UK Holding Limited, London, Great Britain
175 Topic Travel B.V., The Hague, Netherlands
176 Totaljobs Group Limited, London, Great Britain
177 Trans Press d.o.o., Belgrade, Serbia/Kosovo
178 Traveezee Insurance N. V., Eindhoven, Netherlands
12/31/2015
12/31/2014
Share-
holding
in %
100.0
100.0
100.0
100.0
100.0
100.0
99.7
51.0
49.0
75.0
-
Share-
holding
in %
100.0
100.0
-
100.0
-
100.0
99.7
51.0
49.0
75.0
via
No.
147
127
179
89
153
162
153
89
158
157
-
100.0
100.0
121
-
100.0
100.0
100.0
-
100.0
100.0
100.0
-
143
162
164
-
150
164
157
99.9
0.1
80.0
100.0
93.0
7.0
-
100.0
-
-
-
100.0
100.0
99.0
98.2
100.0
50.0
100.0
100.0
157
158
157
157
97
157
157
100.0
99.0
96.5
100.0
50.0
100.0
100.0
-
-
50.1
70.0
100.0
100.0
97.7
1.9
112
174
164
92
8
100.0
143
-
100.0
63.6
-
100.0
100.0
-
89
33
-
66
66
0.0
172
100.0
100.0
100.0
100.0
100.0
100.0
100.0
65
66
66
82
174
153
82
-
100.0
82.2
98.0
0.5
80.0
100.0
100.0
-
100.0
100.0
100.0
0.0
100.0
100.0
100.0
-
100.0
100.0
-
via
No.
147
162
-
89
-
162
153
89
158
157
9)
121
121
144
143
162
164
150
-
164
-
153
157
158
157
157
97
3)
157
157
10
9)
-
174
164
92
8
143
89
89
9)
-
66
66
66
172
7)
65
66
66
-
174
153
-
Segment
Classified Ad Models
Classified Ad Models
Paid Models
Marketing Models
Paid Models
Classified Ad Models
Paid Models
Marketing Models
Paid Models
Paid Models
Paid Models
Paid Models
Paid Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Paid Models
Paid Models
Paid Models
Paid Models
Paid Models
Paid Models
Paid Models
Paid Models
Paid Models
Paid Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Paid Models
Marketing Models
Marketing Models
Marketing Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Classified Ad Models
Paid Models
Classified Ad Models
164
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
No. Company
179 United Classifieds s.r.o., Bratislava, Slovakia
180 upday Polska Sp. z o.o. Sp.k., Warsaw, Poland
181 Villa XL B.V., Bergen, Netherlands
182 Villaweb SARL, Rennes, France
183 Viviana Investments Sp. z o.o., Warsaw, Poland
184 WEBIMM SAS, Paris, France
185 YOURCAREERGROUP Switzerland GmbH, Kloten, Switzerland
186 zanox B.V., Amsterdam, Netherlands
187 ZANOX Hispania SL, Madrid, Spain
188 zanox Reklam Hizmetleri Limited Sirketi, Istanbul, Turkey
189 zanox SAS, Paris, France
190 zanox Switzerland AG, Zurich, Switzerland
191 zanox Sp. z o.o., Warsaw, Poland
192 zanox SRL, Milan, Italy
Segment
Paid Models
Paid Models
Classified Ad Models
Classified Ad Models
Paid Models
Classified Ad Models
Classified Ad Models
Marketing Models
Marketing Models
Marketing Models
Marketing Models
Marketing Models
Marketing Models
Marketing Models
193 ZANOX VEICULAÇÃO DE PUBLICIDADE NA INTERNET LTDA., São Paulo, Brazil
Marketing Models
194 zanox we create partners AB, Stockholm, Sweden
Marketing Models
12/31/2015
12/31/2014
Share-
holding
in %
60.0
100.0
100.0
-
100.0
65.0
100.0
100.0
100.0
-
100.0
100.0
100.0
100.0
100.0
0.0
100.0
Share-
holding
in %
-
-
-
100.0
100.0
65.0
100.0
100.0
100.0
100.0
100.0
-
100.0
100.0
100.0
0.0
100.0
via
No.
100
73
82
-
158
164
66
78
78
-
78
78
78
78
78
41
78
via
No.
-
-
-
150
158
164
66
78
78
78
78
-
78
78
78
41
78
7)
No.
company
Other subsidiaries1)
Germany
12/31/2015
Share-
holding
in %
via
No.
195 @Leisure Deutschland GmbH i.L., Hamburg
100.0
81
196
Achtundachtzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
197
Achtundsiebzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
100.0
100.0
1
1
198 AS Buchversand GmbH, Munich
100.0
26
199
Axel Springer All Media Verwaltungs-GmbH, Berlin
(previously Sechsundsechzigste "Media"
Vermögensverwaltungsges. mbH)
200
Axel Springer Auto & Motorsport Verlag GmbH,
Hamburg
100.0
100.0
201 Axel Springer Computer Verlag GmbH, Hamburg
100.0
202
Axel Springer Personalservice GmbH, Berlin
(previously Siebenundsiebzigste "Media"
Vermögensverwaltungsges. mbH)
203 Axel Springer Print Management GmbH, Berlin
204 Axel Springer Security GmbH, Berlin
205 Axel Springer Sport Verlag GmbH, Hamburg
206 BILD Multimedia Verwaltungs GmbH, Berlin
207 CEO Event GmbH, Berlin
208 Dreamlabs GmbH i.L., Berlin
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1
1
1
1
1
1
1
1
74
49
No.
company
209
Dreiundachtzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
210
Dreizehnte "Media"
Vermögensverwaltungsges. mbH, Hamburg
211 Finanzen Corporate Publishing GmbH, Berlin
212
Fünfundachtzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
213
Fünfundsiebzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
214 hamburg.de Beteiligungs GmbH, Hamburg
215
Hammerich & Lesser Zeitschriften- und Buchverlag
GmbH, Hamburg
216 Hauptstadtsee 809. VV GmbH, Berlin
217
Informationsmedien Handels GmbH, Hamburg
218 kinkaa GbR, Berlin
219
Media Impact Management GmbH (previously Axel
Springer Media Impact Management GmbH), Berlin
220
meinestadt.de
Vermögensverwaltungsgesellschaft mbH, Hamburg
221 myPass GmbH, Berlin
222
Neunundachtzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
12/31/2015
Share-
holding
in %
via
No.
100.0
205
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
50.0
50.0
74.9
100.0
100.0
100.0
1
1
1
26
44
1
1
1
46
59
1
54
1
1
165
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
12/31/2015
Share-
holding
in %
via
No.
No.
company
223
Neunundsiebzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
224
Neunzigste "Media"
Vermögensverwaltungsgesellschaft mbH, Berlin
225 Sales Impact Management GmbH, Hamburg
226 Scubia GbR, Berlin
227
Sechsundachtzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
228
Sechsundsiebzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
229 Shop Now GmbH i.L., Berlin
230
Siebenundachtzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
231 Sohomint GmbH i.L., Hamburg
232 Tarif24 GmbH, Berlin
233 TOPS Online Publications GbR, Lüneburg
234 Transfermarkt Verwaltungs GmbH, Hamburg
235 TunedIn Media GmbH i.L., Berlin
100.0
100.0
100.0
50.0
50.0
100.0
100.0
90.0
100.0
72.6
100.0
90.0
10.0
51.0
86.4
236 Umzugsauktion Verwaltungs GmbH, Schallstadt
100.0
237
upday Management GmbH, Berlin (previously
Dreiundsiebzigste "Media"
Vermögensverwaltungsges. mbH)
238
Vierundachtzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
239
Vierundsiebzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
240
Zweiundachtzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
241
Zweiundsechzigste "Media"
Vermögensverwaltungsges. mbH, Berlin
Other countries
242 African Jobs Online Ltd, Port Louis, Mauritius
243 Alpha Real spol. s.r.o., Zilina, Slovakia
244 AUTOVIA, s.r.o., Bratislava, Slovakia
245
Axel Springer Beteiligungen Switzerland AG, Zurich,
Switzerland
246
Axel Springer Digital Ventures Inc., Wilmington,
USA
247 Axel Springer Editions SAS, Paris, France
248 Axel Springer Group Inc., New York, USA
249 Axel Springer Hírszolgálat Kft, Tatabánya, Hungary
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
1
4
1
59
46
1
26
14
1
1
46
38
46
30
1
47
26
66
26
1
1
162
100
179
99
10
215
53
155
No.
company
250
Axel Springer International Group Limited, London,
Great Britain
251
Axel Springer Media France S.A.R.L.,
Neuilly-sur-Seine, France
252 Axel Springer Media Italia s.r.l., Milan, Italy
253
Axel Springer Publishing International Limited,
London, Great Britain
254
Axel Springer TV International Limited, London,
Great Britain
12/31/2015
Share-
holding
in %
100.0
100.0
100.0
via
No.
1
53
53
100.0
250
100.0
250
255 Azet.sk – katalóg s.r.o., Zilina, Slovakia
100.0
100
256 BEMFEMININO.COM.BR, São Paulo, Brazil
257 Car Price List Yad2 Ltd., Tel Aviv, Israel
258 CompuTel Telefonservice AG, Chur, Switzerland
259 Cpress Media s.r.o., Zilina, Slovakia
260 Cybersearch S.A., Guatemala City, Guatemala
261
Digitality Tech Solutions Private Limited, Mumbai,
India
262 Digitalni klik d.o.o., Zagreb, Croatia
263 Estascontratadocom S.A., Panama City, Panama
264 ETSBA Ltd., Tel Aviv, Israel
265
Euro Blic Press d.o.o., Banja Luka,
Bosnia-Herzegowina
99.9
0.1
100.0
100.0
100.0
100.0
0.0
100.0
60.0
100.0
100.0
89
90
112
99
100
283
162
7)
91
49
283
112
100.0
153
266 eurobridge Inc., New York, USA
100.0
1
267
Gemini Moon Trading 343 Proprietary Limited,
Cape Town, South Africa
100.0
124
268 Good 2015 Acquisition Corp., Wilmington, USA
269
Immostreet ES, Barcelona, Spain
270 Jean Frey AG, Zurich, Switzerland
271 Jobcity Ltd., Tel Aviv, Israel
272 Motogo India Private Limited, Mumbai, India
273 My Kenyan Network Ltd, Nairobi, Kenya
274
OFERTIAMX RETAIL SERVICES,
S. de R.L. de C.V., Mexico City, Mexico
275 Périclès Atlantique S.A.R.L, Casablanca, Morocco
276 Reality Media House s.r.o., Bratislava, Slovakia
277
Saongroup Caribbean (Jamaica) Ltd, Kingston,
Jamaica
100.0
100.0
100.0
100.0
55.6
100.0
66
150
99
112
91
242
100.0
168
51.0
16.0
100.0
148
150
137
100.0
111
278
Saongroup Caribbean (Trinidad) Ltd, Port of Spain,
Trinidad and Tobago
100.0
111
166
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
291
zanox Reklam Hizmetleri Limited Sirketi, Istanbul,
Turkey
100.0
78
317 LAUT AG, Konstanz
No.
company
279 Saongroup.com India Pvt Ltd, Pune, India
280 SPORT.SK s.r.o., Zilina, Slovakia
281
Tecoloco El Salvador S.A. de C.V., San Salvador,
El Salvador
282
Tecoloco Holding S.A. de C.V., San Salvador,
El Salvador
283 Tecoloco International Inc, Panama City, Panama
284
Tecoloco S.A. de C.V. Honduras, Tegucigalpa,
Honduras
285
Tecoloco.com S.A. de C.V. Nicaragua, Managua,
Nicaragua
286
Tecoloco.com S.A. de C.V. Panama, Panama City,
Panama
287 upday Polska Sp. z o.o., Warsaw, Poland
288 wewomen.com Inc., Wilmington, USA
289 Yad2Pay Internet Ads Ltd., Haifa, Israel
290 Yad2Pay Ltd., Tel Aviv, Israel
12/31/2015
Share-
holding
in %
100.0
66.7
100.0
0.0
100.0
0.0
100.0
99.6
0.4
95.0
3.0
2.0
100.0
100.0
100.0
100.0
100.0
Investments accounted for using the equity
method
Germany
292 AS TYFP Media GmbH & Co. KG, Munich
293
Axel Springer Plug and Play Accelerator GmbH,
Berlin
294 Bonial Ventures GmbH, Berlin
295 mytic myticket AG, Frankfurt am Main
296 Project A Ventures GmbH & Co. KG, Berlin
Other countries
297 Blendle B.V., Utrecht, Netherlands
298
Editions Mondadori Axel Springer (EMAS) S.E.N.C.,
Montrouge Cedex, France
299
INFOR BIZNES Sp. z o.o., Warsaw, Poland
300 MDB SAS, EVRY CEDEX, France
301 Ozy Media, Inc., Mountain View, USA
302 Thrillist Media Group, Inc., Delaware, USA
Other associated companies and joint
ventures2)
Germany
303 Agenda Media GmbH i.L., Berlin
304 autohaus24 GmbH, Pullach
No.
company
305
Berliner Pool TV Produktion Gesellschaft mbH,
Berlin
12/31/2015
Share-
holding
in %
50.0
via
No.
76
306
Blitz-Tip Radio Hessen Beteiligungsges. mbH & Co.
KG, Bad Soden am Taunus
33.3
1
307 Bonial Enterprises Verwaltungs GmbH, Berlin
100.0
32
4)
via
No.
162
100
283
162
283
7)
162
7)
308 Dropspot GmbH i.L., Berlin
162
283
162
283
281
260
283
73
89
112
112
309 Filmgarten GmbH, Berlin
310
Ges. für integr. Kommunikationsforschung mbH &
Co. KG, Munich
311
Ges. für integr. Kommunikationsforschung
Verwaltungs GmbH, Munich
312
Harburger Zeitungsverwaltungsgesellschaft mbH,
Hamburg
313 hy! GmbH (previously hyvent GmbH), Berlin
314
Intermedia Standard Presse-Code GmbH,
Hamburg
315
InterRed GmbH, Haiger
316
ISPC Intermedia Standard Presse-Code GmbH &
Co.KG, Hamburg
318
"Lühmanndruck" Harburger Zeitungsges. mbH &
Co. KG, Hamburg
319 Mont Ventoux Media GmbH, Berlin
320 Myby GmbH & Co. KG i. L., Düsseldorf
321 Project A Management GmbH, Berlin
322 Project A Services GmbH & Co. KG, Berlin
4)
323 Qivive GmbH i. L., Bad Homburg v.d.H.
324 Radio Hamburg GmbH & Co. KG, Hamburg
325 Sparheld International GmbH, Berlin
326 TraderFox GmbH, Reutlingen
327
V.V. Vertriebs-Vereinigung Berliner Zeitungs- und
Zeitschriften-Grossisten GmbH & Co. KG, Berlin
328
Zeitungs- und Zeitschriften Vertrieb Berlin GmbH,
Berlin
Other countries
50.0
50.0
74.9
20.0
26.3
21.0
50.0
49.0
49.0
16.8
24.9
1
10
1
1
9
10
94
154
92
10
8)
10
40.0
42.0
20.0
20.0
24.8
49.0
32.0
24.0
32.0
25.0
24.8
50.0
25.1
26.3
37.5
33.3
35.0
30.0
25.1
48.5
35.5
1
46
1
1
1
1
1
1
1
1
1
25
1
9
9
1
1
46
42
1
1
329 AR Technology SAS, Paris, France
86.5
333
330
Asocijacija Privatnih Media, Belgrade,
Serbia/Kosovo
331 Autoreflex.com SAS i.L., Paris, France
332 BULGARPRESS OOD, Veliko Tarnovo, Bulgaria
333 EMAS Digital SAS, Montrouge Cedex, France
20.0
99.0
1.0
25.5
50.0
153
329
333
1
94
49.0
50.0
76
6
167
Annual Report 2015
Axel Springer SE
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
No.
company
12/31/2015
Share-
holding
in %
334
HUNGAROPRESS Sajtóterjesztö Kft, Budapest,
Hungary
335
ITAS Media Private Limited, Delhi, India
336 Les Rencontres aufeminin.com SAS, Paris, France
24.0
36.0
50.0
via
No.
1
5
89
No.
company
338 Swan Insights SA / NV, Brussels, Belgium
339 VINA WOMAN UK LTD., London, Great Britain
Other significant investments
Other countries
12/31/2015
Share-
holding
in %
25.1
30.0
via
No.
66
89
337
Ringier Axel Springer Switzerland AG, Zurich,
Switzerland
50.0
245
340 Doğan TV Holding A.S., Istanbul, Turkey
9.3
37
1) No full consolidation due to immaterial impact (relation of net income and balance sheet total to
6) The company has exercised the exemption rights of Section 264b of the German Commer-
the company to net income and balance sheet total of the Group).
cial Code (Handelsgesetzbuch – HGB).
2) No at-equity consolidation due to immaterial impact (relation of net income of the company to
net income of Group).
3) Control due to existing option rights exercisable at any time.
4) In the reporting year and/or in the prior year no control due to contractual agreements which
7) Shares less than 0.1 %.
8) Significant influence due to the represention in the Supervisor Board.
9) Due to option rights in the reporting year and/or in the prior year a share of 100 % consolidi-
ated.
exclude from the power and the possibility to control variable inflows.
10) Due to option rights in the reporting year and/or in the prior year, a share of 89.99 %
5) The company has exercised the exemption rights of Section 264 (3) of the German Com-
consolidiated.
mercial Code (Handelsgesetzbuch – HGB).
11) Control due to contractual agreements and rights to obtain power.
168
Boards
Supervisory Board
The Supervisory Board is composed of the following persons:
Name, occupation
Seats on other mandatory
supervisory boards
Seats on comparable boards
in Germany and abroad
Dr. Giuseppe Vita
Chairman of the Supervisory Board of
Axel Springer SE
UniCredit S.p.A., Italy (Chairman of the Board of Directors)
Dr. h. c. Friede Springer
Vice Chairwoman of the Supervisory Board
of Axel Springer SE
ALBA Finance plc & Co. KGaA
ALBA plc & Co. KGaA
ALBA Group plc & Co. KG (Advisory Board)
Oliver Heine
Attorney at law and partner in the
law firm Heine & Partner
Rudolf Knepper
Entrepreneur
Lothar Lanz
Member of various Supervisory Boards
YooApplications AG, Switzerland (Board of Directors)
Bauwert AG (Chairman since December 2015)
Home 24 AG (Chairmen since September
2015)
TAG Immobilien AG
Zalando SE
Do⁄an TV Holding A.S., Turkey (Supervisory Board)
Dr. Nicola Leibinger-Kammüller
President and Chairwoman of the Managing
Board of TRUMPF GmbH + Co. KG
Lufthansa AG
Siemens AG
Voith GmbH
Prof. Dr. Wolf Lepenies
University Professor (emer.) FU Berlin;
Permanent Fellow (emer.) at
Wissenschaftskolleg zu Berlin
Prof. Dr.-Ing. Wolfgang Reitzle
Entrepreneur
Martin Varsavsky
Chairman Fon Wireless Limited
Continental AG (Chairman)
Hawesko Holding AG
Medical Park AG (Chairman)
LafargeHolcim Ltd., Switzerland (Chairman of the Board of Directors, until July
2015 “Holcim Ltd.”)
Ivoclar Vivadent AG, Liechtenstein (Board of Directors since January 2015)
169
Annual Report 2015
Axel Springer SE
Executive Board
The Executive Board is composed of the following persons:
Executive Board member
Seats on mandatory
supervisory boards
Seats on comparable boards
in Germany and abroad
Boards
Dr. Mathias Döpfner
Chairman and Chief Executive Officer
Journalist
Jan Bayer
President Paid Models
Media scholar
Dr. Julian Deutz
Chief Financial Officer
Master’s Degree in Business Administration
Dr. Andreas Wiele
President Marketing and Classified Ad
Models
Lawyer
Immowelt AG (Chairman since October 2015)
Immowelt Holding AG (Chairman since
October 2015)
ZANOX AG (Chairman)
Axel Springer Schweiz AG, Switzerland (Chairman of the Board of Directors)
Business Insider Inc., USA (Chairman of the Board of Directors since October 2015)
B.Z. Ullstein GmbH (Advisory Board until October 2015)
Ozy Media Inc., USA (Board of Directors until December 2015)
RHJ International SA, Belgium (Board of Directors until February 2015)
Ringier Axel Springer Schweiz AG, Switzerland (Board of Directors since December
2015)
Time Warner Inc., USA (Board of Directors)
Vodafone Group Plc., Great Britain (Board of Directors since April 2015)
Warner Music Group Corp., USA (Board of Directors)
Media Impact GmbH & Co. KG (Advisory Board since June 2015)
Business Insider Inc., USA (Board of Directors since October 2015)
Automotive Exchange Private Limited, India (Board of Directors until February 2015)
Axel Springer Digital Classifieds GmbH (Supervisory Board)
Axel Springer Schweiz AG, Switzerland (Board of Directors)
ITAS Media Private Limited, India (Board of Directors)
Ringier Axel Springer Magyarország Kft., Hungary (Supervisory Board)
Ringier Axel Springer Management AG, Switzerland (Board of Directors)
Ringier Axel Springer Media AG, Switzerland (Board of Directors )
Ringier Axel Springer Schweiz AG, Switzerland (Board of Directors since December
2015)
SeLoger.com SAS, France (Supervisory Board since June 2015)
StepStone GmbH (Supervisory Board since April 2015)
@Leisure Holding B.V., Netherlands (Chairman of the Board of Directors since
January 2015)
AUFEMININ SA, France (Board of Directors)
Axel Springer Digital Classifieds France SAS, France (Chairman of the Supervisory
Board)
Axel Springer Digital Classifieds GmbH (Chairman of the Supervisory Board)
Axel Springer Digital Classifieds Holding GmbH (Chairman of the Advisory Board until
March 2015)
Business Insider Inc., USA (Board of Directors since January 2015)
B.Z. Ullstein GmbH (Advisory Board until October 2015)
Car & Boat Media SAS, France (Chairman of the Supervisory Board)
Coral-Tell Ltd., Israel (Chairman of the Board of Directors )
Immoweb SA, Belgium (Chairman of the Board of Directors)
Media Impact GmbH & Co. KG (Advisory Board since June 2015)
meinestadt.de GmbH (Chairman of the Supervisory Board)
PRINOVIS Limited, Great Britain (Board of Directors until December 2015)
SeLoger.com SAS, France (Chairman of the Supervisory Board)
StepStone GmbH (Chairman of the Supervisory Board)
170
Financial Calendar
March 3, 2016
Annual Report, Annual Results Press Conference,
Investor and Analyst Conference Call
April 13, 2016
Annual General Meeting
May 11, 2016
Quarterly Statement as of March 31, 2016
August 3, 2016
Interim Financial Report as of June 30, 2016
November 3, 2016
Quarterly Statement as of September 30, 2016
Imprint
Address
Axel Springer SE
Axel-Springer-Strasse 65
10888 Berlin
Phone: +49 30 2591-0
Investor Relations
ir@axelspringer.de
Phone: +49 30 2591-77421/-77425
Fax: +49 30 2591-77422
Corporate Communications
information@axelspringer.de
Phone: +49 30 2591-77660
Fax: +49 30 2591-77603
Design
Axel Springer SE
Corporate Communications
Photos
Andreas Bitesnich (p. 4, p. 6)
Matti Hillig (p. 6, p. 7)
Sergio Rinaldi (p. 78)
The Annual Report and up-to-date information about
Axel Springer are available on the Internet at
www.axelspringer.com
The English translation of the Annual Report
is provided for convenience only. The German
original is legally binding.