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Axel Springer acquires Business Insider

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Axel Springer acquires Business Insider Investor/Analyst Conference CallDr Mathias Döpfner, Chairman & CEO, Axel Springer SE Dr Julian Deutz, CFO, Axel Springer SE Henry Blodget, Founder, CEO & Editor-in-chief, Business Insider Inc. New York, September 29, 2015 This document, which has been issued by Axel Springer SE (the "Company"), comprises the written materials/slides for a presentation of the management. Whilst all reasonable care has been taken to ensure that the information and facts stated herein are accurate and that the opinions and expectations contained herein are fair and reasonable no representation or warranty, express or implied, is given by or on behalf of the Company, any of its directors, or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability is accepted for any such information or opinions. This document contains forward looking statements which involves risks and uncertainties. These forward looking statements speak only as of the date of this document and are based on numerous assumptions which may or may not prove to be correct. The actual performance and results of the business of the Company could differ materially from the performance and results discussed in this document. The Company undertakes no obligation to publicly update or revise any forward looking statements or other information contained herein whether as a result of new information, future events or otherwise. This document does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto.Disclaimer2 Acquisition of one of the leading digital business news offerings in the English-speaking world3 Reach of 76 million global unique visitors with strong growth momentum 1 Business Insider user base highly attractive for advertising customers 2 Strong brand with potential for additional offerings and further internationalization 3 Acquisition adds 63% audience and makes Axel Springer #6 digital publisher globally (reach-based) Sources: comScore 1) Global desktop audience, projected to multi-platform based on the multi-platform/desktop ratio in the US market/ GER market for AS. Excl. any Chinese publishers, film production companies as well as telecommunications providers (e.g. AOL non-publishing, Deutsche Telekom) 2) Huffington Post Global, TechCrunch and Engadget (deduplicated) 3) Total of News Corp. Online, Dow Jones & Company and Fox News Audience of international publisher peers (Global UVs in million estimate 1, multi-platform, July 2015) 4 Washington Post 526667 Forbes Digital BloombergTelegraph 74 Business Insider76 Vox Media 83 New York Times 90The Guardian 106 Axel Springer122 Viacom 123BBC 141 Gannett 142 News Corp. 3 157 Vice Media 164Buzzfeed 174 Turner Digital 185 Comcast NBCUniversal 196Daily Mail 196 Axel Springer + Business Insider 199 HuffPo Media Group 2 208 Time Inc. 215 Conde Nast 220Hearst 237CBS574 Business Insider successfully follows proven business logic51.Build-up of reach 2.Monetization 3. Profitability    Global audience Strong revenue growth Breakeven 2015 before growth investments () Five things you need to know about Business Insider76,400,000global unique visitors #1business site in the United States 60% of traffic frommobiledevices 39% of traffic fromsocialnetworks 2 nd most sharedbusiness site on LinkedIn 6 Business Insider reaches more affluent readers than peers 7 Audience with a household income of USD 100k+ (UVs in million, US multi-platform, August 2015) 10.2 BI 17.2 QZ 0.6 Forbes FT13.7 2.1 IBT 5.88.1 Source: comScore Business Insider with strong presence among millennials – 2/3 of audience below 44 yearsAge breakout – US audience (US multi-platform, August 2015) 18-24 yrs 25-34 yrs 11 % 45-54 yrs 6% 55-64 yrs 65+ yrs 35-44 yrs 16% 14%21% 29% Business Insider reaches more affluent readers than its peers% of total audience 41% 39% 42% 43% 38% 36% 53% Business Insider is the largest business news website with 60% mobile traffic8 Audience growth of leading English-speaking business websites (in million UVs per month, USA) Source: comScore ; Note: Not including Yahoo! Finance as non-editorial content asset Audience by source (Google Analytics, in % of visits)Mobile60%Desktop 40% The trend is your friend! Business Insider has embraced major digital trends in its favor9 Programmatic 3 30% of ad revenues Social 2 39% of traffic Mobile 1 60% of traffic Drivers for further growth through more…10 …verticals …subscribers…countries Insider (Q1/16) More business customers Triple subscription revenues by 2018 New marketsTa r g e t Today Mostly retail customers for BI Intelligence US, UK Licences in: India, China, Australia, Singapore, Malaysia, Indonesia Business Insider (2007) Tech Insider (2015) 11Transaction overviewFounded 2007, based in New York Leading business news website in the US ~325 employees (~50% journalists ) Axel Springer minority investor with ~9% since January 2015 Acquisition of ~88% (total stake 97%) Long-term equity incentive for Henry Blodget (Founder, CEO & Editor-in-chief) and Julie Hansen (COO & President) Based on 100%: purchase price of $442m (~€395m) on the basis of a company valuation (cash/debt free) of $390m (~€348m) Transaction subject to approval by the relevant antitrust authorities Closing envisaged in Q4/15 Business Insider profile Deal Terms Existing credit facilities and additional term loan of up to €400m Leverage post transaction 2.2x Financing Revenue growth of >70% (CAGR) Revenue growth based on strong reach and successful monetization Reach 2009 12 Growth Excellent monetization Reach 2014 >80% (CAGR) Ambitious targets for further growth and monetization13 Current P&L burdened by expansion – Breakeven envisaged by 2018Revenue multiple of ~6x expected in 2016 – Revenues to grow >30% (CAGR) until 2020  Our corporate mission14 The leading digitalpublisher