I N T E R I M R E P O R T J A N U A RY 1 T O S E P T E M B E R

Transcription

1 INTERIM REPORT J A N U A RY 1 T O S E P T E M B E R 3 0,

2 G R O U P K E Y D ATA Q1 3/2004 Q1 3/2003 Change in d million in d million in % Sales Profit EBITA 2) EBITA margin in % DVFA/SG income Net income Cash flow from operating activities Capital expenditure Balance sheet total 3) Share in c DVFA/SG earnings per share 4) Closing price 5) Number of employees Average Q1 3: January 1 to September 30 2) Result before taxes, interest and goodwill amortisation, adjusted for extraordinary items 3) As of September 30, 2004 and December 31, ) Calculation basis: 30.6 million shares in Q1 3/2004 (excluding own shares), 34.0 million shares in Q1 3/2003 5) As of September 30, 2004 and September 30, 2003 EBITA/EBITA margin (Q1 3) in c million DVFA/SG income (Q1 3) in c million % c % c EBITA EBITA margin DVFA/SG income DVFA/SG earnings per share 1

3 I N T E R I M R E P O R T Axel Springer Group In the first nine months of the 2004 financial year, Axel Springer improved earnings before interest, tax and amortisation (EBITA) from d million in the previous year to d million. The net income for the period increased from d million to d million. The conclusion of a settlement agreement in the context of the insolvency scheme process at Taurus TV GmbH (Kirch settlement) contributed d 92.6 million to EBITA and d 62.3 million to net income. Net income of the previous year was impacted by non-recurring effects from company disposals. In the first nine months, sales increased by 2.4% year-on-year. Both circulation and advertising revenues increased. On the basis of ongoing success in the introduction of new newspapers and magazines combined with further cost cutting effects and the result of the first nine months, the Management Board continues to expect that sales and EBITA for the whole of the 2004 financial year will be higher than 2003, even before adjustment for the Kirch settlement. ECONOMIC ENVIRONMENT For the first nine months of the year, the leading economic institutes estimate real growth of 1.6% against the comparable period of the previous year. In the same period, private consumption declined by 0.3%. Consumer demand is still negatively impacted by lower employment figures. For the first nine months, the inflation rate was 1.6%. Retail press markets continue to decline Ongoing weak demand cut across all industries. In the retail sector, the expected stabilization of demand did not materialize. Net paid circulation for newspapers and magazines declined by 3%. Across the industry, press sales were down 1%. With 380 daily and Sunday newspapers registered with the circulation organization IVW, total sales declined year-on-year in the first three quarters to 26.2 million copies. This was a decline of 2.4% against the first three quarters of Newsstand sales lost 4.7%, subscriptions declined by 1.9%. The number of general-interest titles registered with IVW increased by 13 to 822. In the first nine months, total IVW sales at million copies per issue receded by 0.3% yearon-year. Newsstand sales dropped by 2.5% while subscriptions developed stable (+0.3%). This includes circulation in membership magazines. While in the newspaper market new accents were set primarily for young readers with launches of inexpensive titles in tabloid format, predatory competition continued via the low copy prices for weekly women s press and TV guides. In the Electronics/Entertainment segment, imitation products with lower prices began to push onto the market for the first time. Continuing stability in the advertising market According to Nielsen Media Research, gross advertising sales of classical media in the first nine months of 2004 (excluding classified ads) posted 5.8% growth year-on-year. Gross advertising investment of brand and service companies and large retailers (including media advertisement) totaled a 12.7 billion. However, decisive in business terms is the decisive net development. Here the trend was considerably less favorable. This was due to ongoing pressure on conditions. The classified ads market in particular, a central source of income for subscriber newspapers, experienced further decline in the family, travel and jobs vacancies market. 2

4 BUSINESS DEVELOPMENT In the first nine months, Axel Springer increased EBITA from a million to a million. Net income increased from a million to a million. The conclusion of a settlement agreement in the context of the insolvency scheme process at Taurus TV GmbH contributed a 92.6 million to EBITA and a 62.3 million to net income. The prior-year figure was influenced by extraordinary earnings from company disposals. In the first nine months, the company generated a 2.4% yearon-year sales increase, with both circulation and advertising revenues moving up. Ongoing cost management in the core business offset the start-up losses of new titles. Axel Springer continues to launch new titles. In Germany the company launched the fortnightly TV guide TV DIGITAL in March. In September the finance magazine FONDS&CO, the literary magazine DER FREUND and the classified ads newspaper AUTOBILD.DE-AUTOMARKT was started. The construction of the new office and business premises in Berlin was concluded as scheduled. The process of bundling central group management and service functions at the main office in Berlin with the objective of achieving further improvements in efficiency was successfully completed in the first half of the year. Newspapers In the reporting period, BILD considerably expanded advertising revenues with brand companies and the retail business as well as with advertising cooperations. BILD reached an average circulation of 3.8 million copies. With a revised contents and optical concept, BILD am SONNTAG has offered more topicality, service and sport since August. The main part of the newspaper has been extended from 48 to 64 pages, 8 of which are devoted to more sports reporting. The positive trend in the advertisement and insert business at BILD am SONNTAG continued. FAKT, the Polish daily started in October 2003, has established itself as the largest daily newspaper in the country with more than 3 million readers. In October 2003, Axel Springer launched REGGEL, the first modern quality newspaper for the Budapest area. In the third quarter, Axel Springer Budapest launched two new magazines, AUTO BILD and GLAMOUR. The Russian subsidiary Axel Springer Russia introduced also two new titles with FORBES RUSSIA and RUSSKIJ NEWS- WEEK. The RPG (Romanian Publishing Group), in which Axel Springer has a 40% stake, launched the women s magazine SANA in Rumania. Axel Springer expanded the international licensing business. With five new licensed editions this year (Estonia, Finland, Slovakia, Latvia, Thailand), AUTO BILD is the fastest growing international licensed title. In September, COMPUTER BILD started with a new offshoot in Lithuania. The women s magazine ALLEGRA, the TV guide TV MÜSOR in Hungary and the car magazine AUTO SUKCES in Poland were discontinued. Newspapers in Germany Net paid circulation, IVW, average Q1 to Q BILD BILD am SONNTAG DIE WELT WELT am SONNTAG HAMBURGER ABENDBLATT BERLINER MORGENPOST B.Z B.Z. am SONNTAG EURO am SONNTAG

5 WELT and WELT am SONNTAG kept advertising revenues stable in the first nine months. Since August, WELT am SONNTAG has had a new modern layout, with a revised structure and new contents. After successful trials in Berlin and Frankfurt am Main, the launch of WELT KOMPAKT was continued across Germany with extension of the distribution to Munich, Dusseldorf and parts of the Ruhr area. WELT KOMPAKT is the first regional quality newspaper in Germany in the compact tabloid format and the third national newspaper founded in the last 50 years. The restraint of the advertising market in the first nine months of the financial year was also felt in Berlin at the BERLINER MORGENPOST and B.Z./B.Z. am SONNTAG. With modestly positive signals from the retail sector and the property markets, the two newspapers asserted their market position. With net paid circulation of , the HAMBURGER ABENDBLATT developed more positively than the overall market of regional newspapers. In both the retail and advertising market, the company defended its leading position in the Hamburg region. Retroactive to January 1, 2004, Axel Springer has aquired a 14.5% share in Westfalen-Blatt Zeitungsverlage GmbH, one of the largest regional newspapers in North Rhine-Westphalia. Magazines Axel Springer successfully continued its expansion process in Germany and abroad. The fortnightly TV guide TV DIGITAL, launched in March, established itself as the quality magazine for digital television. Circulation improved steadily with net paid circulation averaging 1.2 million copies, while the established TV magazines had lower net paid circulation in the first nine months than the comparable period of the previous year. Magazines in Germany Net paid circulation, IVW, average Q1 to Q HÖRZU TV DIGITAL FUNK UHR BILDWOCHE TV NEU BILD der FRAU FRAU von HEUTE JOLIE JOURNAL für die FRAU COMPUTER BILD COMPUTER BILD SPIELE AUDIO VIDEO FOTO BILD AUTO BILD AUTOMOBIL TESTS AUTO BILD MOTORSPORT AUTO BILD ALLES ALLRAD AUTO BILD TEST & TUNING SPORT BILD MAXIM POPCORN YAM! MÄDCHEN STARFLASH ROLLING STONE MUSIKEXPRESS METAL HAMMER FINANZEN Included since the 2nd quarter of

6 In the fiercely contested market of women s magazines, BILD der FRAU defended its market leadership in a commanding fashion. According to the Media-Analyse 2004/II, BILD der FRAU reached a total of 5.5 million readers. The new monthly women s magazine JOLIE further improved its circulation, creating a new high of over net paid copies in the third quarter. Due to the ongoing difficult market situation, the monthly Women s magazine ALLEGRA was discontinued. In the first nine months of the year, COMPUTER BILD increased its circulation year-on-year by 1.7% to over copies. COMPUTER BILD thus confirmed its undisputed market leadership in the European computer magazine market. AUDIO VIDEO FOTO BILD, launched in December 2003, has developed in a very positive way. Over the year it averaged circulation of more than net paid copies, becoming the consumer electronic magazine market leader by a large margin. AUTO BILD remains by far the largest car magazine in Germany. For its excellent brand management it was awarded the title Superbrand. An independent jury of experts made up of leading personalities selected the 46 best and strongest brands in Germany from a range of 700 brand names submitted. Since September, the fortnightly classified ads magazine AUTOBILD.DE-AUTOMARKT with a printed circulation exceeding is being supplemented with the internet portal AUTOBILD.DE. The magazine is publishing offers for more than used cars on over 150 pages. The Munich-based Verlag Finanzen is publishing the new quarterly financial magazine FONDS & CO. Since September 2004, Axel Springer has launched the quarterly literary magazine DER FREUND. The magazine deliberately does not use photos and advertising. International The Polish daily FAKT was launched by Axel Springer in October In just short time, it has firmly established itself as the country s largest daily newspaper with more than 500,000 copies sold and reaching around 3 million readers. The new market segment of fortnightly TV guides has been established in France since the beginning of the year. As a result, competition has considerably intensified on the market for TV guides, in which Axel Springer is represented by TÉLÉ MAGAZINE. With FORBES RUSSIA and RUSSKIJ NEWSWEEK the Russian subsidiary Axel Springer Russia launched two new magazines. In October 2004, Axel Springer launched REGGEL, the first modern quality newspaper for the Budapest area. REGGEL is the ninth daily published by Axel Springer in Hungary. The printing house in Keckemet was extended, being equipped for the additional requirements of the new daily REGGEL. In September, Axel Springer Budapest launched the twentythird AUTO BILD and the monthly women s magazine GLAMOUR in a licensed edition. Axel Springer extended its international licensing business with five further licensed editions of AUTO BILD (Estonia, Finland, Slovakia, Latvia, Thailand) and a new edition of COMPUTER BILD in Lithuania. In Lithuania the licensee is Veidas Periodical Publishing. COMPUTER BILD already appears in Poland, Spain and the Czech Republic. The titles AUTO SUKCES in Poland and TV MÜSOR in Hungary were discontinued. For accessing new markets in Asia, Axel Springer founded a representative office China based in Shanghai. 5

7 Electronic Media With a 49.9% stake in the online jobs portal StepStone Deutschland AG, Axel Springer is commencing a strategic alliance for marketing national and regional job advertisement. After the successful development of IMMONET and AUTOBILD.DE, the investment in StepStone is a decisive strategic supplement of the online classified ads business in the third key segment of jobs. The stake in StepStone Deutschland AG is still subject to approval for the Federal Cartel Office. In the first nine months of the year, IMMONET with average real estate offers of over has firmly established itself as one of the leading real estate portals. With some being offers, AUTOBILD. DE, the internet portal belonging to the AUTOBILD group is one of the largest automobile markets in the internet. For strengthening the competence in classified ads, the B.Z. has been integrated into the AUTO- BILD.DE internet portal. In the first nine months of the year, the reporting highlights for BILD.T-ONLINE were the European Championships (soccer) and the Olympic Games. With 244 million page impressions in September, BILD.T-ONLINE consolidated its position as a leading cross-media general-interest portal. Sales were extended considerably, both for online advertising as well as with crossmedia cooperations and the so-called Volk products. Printing and Logistics After successful negotiations, in September Arvato and Gruner+Jahr and Axel Springer signed a letter of intent for combining their five German gravure printing operations. It was also agreed to include the printing operation which is being built by Arvato in Liverpool, England. The project is still subject to the approval of the supervisory bodies and the anti-trust authorities. FINANCIAL SITUATION Sales In the first nine months of the year, Axel Springer generated a sales increase from a million to a million (+ 2.4%). Advertising revenues rose by a 22.9 million (+ 3.3%) to reach a million. Circulation revenues moved up by a 24.9 million (+ 2.9%) to a million. At a Miscellaneous sales million were down slightly year-on-year ( 2.3%). Sales generated outside of Germany increased from a million by a 19.1 million (+ 7.7%) to a million. Thus, the share of sales generated abroad rose from 13.9% to 14.6%. Newspaper sales rose by a 45.0 million (+ 4.5%) to a million in the first nine months of the year. Advertising revenues rose by a 26.9 million (+ 5.4%) to a million. In particular, BILD and BILD am SONNTAG contributed to this positive development. At a million circulation revenues for newspapers were up a 18.1 million (+ 3.6%) year-on-year. This is primarily due to the effect of price increases introduced at BILD and HAMBURGER ABENDBLATT to the middle of In the first nine months magazine sales, at a million, were up slightly year-on-year (+ 0.5%). At a million, advertising revenues were down a 4.0 million ( 2.1%) on the previous year. While new titles and the car and computer magazines developed well, traditional TV guides and women s magazines found themselves under earnings pressure. At a million, circulation revenues were up a 6.8 million (+ 1.9%) on the previous year. In addition to the positive development at COMPUTER BILD, this growth was primarily driven by the launch of the new AUDIO VIDEO FOTO BILD, TV DIGITAL and FRAU von HEUTE titles. In the first nine months of 2004, the contract printing volume for offset and gravure printing rose year-on-year, despite the continuing weakness of the economy. Logistics and Distribution supported the establishment of new distribution channels to better align them to consumer flows. 6

8 At a 44.8 million sales for Electronic Media declined yearon-year by a 6.5 million ( 12.7%). External Printing sales increased by a 5.2 million (+ 5.5%) auf a million. At a 84.3 million Other revenues were a 4.1 million ( 4.6%) down year-on-year. Profit In the first nine months, Axel Springer increased EBITA (adjusted for extraordinary items) from a million to a million. The net income for the period increased from a million to a million. The conclusion of the settlement agreement in the context of the insolvency scheme process at Taurus TV GmbH contributed a 92.6 million to EBITA and a 62.3 million to the net income for the period. The prior-year value was influenced by extraordinary earnings from company disposals. DVFA/SG income rose from a 61.4 million to a million. The improved results are due apart from the non-recurring income as a result of the settlement agreement to higher sales and ongoing cost management. This was countered by the start-up costs of the expansion process, which negatively impacted EBITA particularly in the magazine segment. Total expenses (before taxes and goodwill amortisation) rose at a level slightly below that of sales, by a 35.6 million (+ 2.1%) to a million. Sales by sectors Q3/2004 Q3/2003 Change in d million in d million in % Q1 3/2004 2) Q1 3/2003 2) Change in d million in d million in % Circulation Advertising Miscellaneous Total Sales by segments Q3/2004 Q3/2003 Change in d million in d million in % Q1 3/2004 2) Q1 3/2003 2) Change in d million in d million in % Newspapers Magazines Printing Electronic Media Other revenues Total Q3: 3rd quarter 2) Q1 3: January 1 to September 30 7

9 Capital expenditure In the first nine months, Axel Springer invested a 89.2 million after a million in the previous year. a 79.8 million of capital expenditure (previous year: a million) related primarily to tangible and intangible assets. Capital expenditure focused on the extension of the offset printing facility in Ahrensburg, the construction of the new Berlin office and business premises, and the subscribers to TV DIGITAL, the TV guide launched in March. Capital expenditure on financial assets amounted to a 9.4 million (previous year: a 4.9 million). The financial assets position on the balance sheet is also impacted by the reclassification of SAT.1 Beteiligungs GmbH from current asset to fixed asset and increasing the stake in the context of the Kirch settlement. Depreciation and amortisation (without goodwill amortisation) amounted to a 65.6 million (previous year: a 59.6 million). Net liquidity The total of the cash flows from operating, investment and financing activities increased liquid funds by a 80.8 million As of September 30, 2004, funds (liquid funds and securities in current assets) amounted to a million. With bank loans liabilities of a million, Axel Springer closed the third quarter of 2004 with net liquidity of a million. As of December 2003, net liquidity was a 99.4 million. SHARE The price of Axel Springer shares at the beginning of the year was a During the course of the year, the share outperformed the MDAX and closed at a (previous year: a 54.50) on September 30, In the first three quarters of the year, DVFA/SG net income per share was a 4.36 after a 1.81 in the previous year. In the third quarter, DVFA/SG net income per share was a 2.35 (previous year: a 0.44). As at September 30, 2004 Axel Springer bundled share trading on the Frankfurt stock exchange in order to concentrate trading at the location with the highest liquidity Share performance Index January 2, 2004 = 100 January 04 June 04 September EMPLOYEES In the first nine months of 2004, Axel Springer employed an average staff of people (not including trainees and interns), 323 fewer than in the prior-year period. As of October 1, 2004 the number of employees was (previous year: ) Axel Springer AG MDAX 8

10 ANNUAL SHAREHOLDERS MEETING 2004 On April 14, 2004, the Annual Shareholders Meeting of Axel Springer AG voted Prof. Dr. Lepenies into the Supervisory Board. Dr. Joachim Theye has left the Supervisory Board. The other members of the Supervisory Board were reelected. Furthermore, with a majority of 99.9% the Annual Shareholders Meeting resolved a participation program in the context of authorization to acquire and utilize own shares (Item 7 on the agenda). The detailed description of the management participation program can be found on the Company s Internet site at Meeting. A rescind action has been filed against the resolution made by the Annual Shareholders Meeting 2004 on Item 7 of the agenda. The rescind action was rejected by the Berlin District Court on September 27, The verdict is not yet final. In the context of management participation program and the conditions resolved at the Annual Shareholders Meeting on April 14, 2004, from August 16, 2004, Axel Springer AG sold shares at a price of a per share plus 2% p.a. from July 1, 2004, i.e. a per share to members of the Management Board. MANAGEMENT BOARD CHANGE Hubertus Meyer-Burckhardt, Head of Electronic Media, left the company by the end of June 2004 and was appointed as the Management Board member for Corporate Development of ProSiebenSat.1 Media AG with effect from July 1, The Management Board position has not been refilled. As a result this body has been reduced to four members. The Electronic Media division is now allocated to the Management Board member for Newspapers and International. The production and marketing of digital programming remains the core component of corporate strategy and will be further expanded. EVENTS OF PARTICULAR SIGNIFICANCE Within the context of the insolvency scheme process of Taurus TV GmbH i. I., a settlement arrangement was concluded between Axel Springer AG, Taurus TV GmbH i. I., KirchMedia GmbH & Co. KGaA i. I. and other parties. Under the settlement arrangement, Axel Springer AG agrees to waive its rights arising from the put option claim which is in dispute between the parties involved. In return, Axel Springer AG will retain its indirect holding in ProSiebenSAT.1 Media AG of 10.2%, will increase this by 1.8% with no financial consideration, and will receive from Taurus TV GmbH i. I. a payment of a 60.3 million. Overall, the settlement impacted EBITA for the nine months by a 92.6 million and net income of the period by a 62.3 million. In addition, the insolvency administrator of KirchMedia GmbH & Co. KGaA i. I. will recognize a claim in the schedule of debts in an amount of a 325 million in favor of Axel Springer AG. The claim will be taken into account in the further insolvency proceedings. OUTLOOK The Fall Report of the leading German economic research companies anticipates economic growth for 2004 of 1.8%. In the course of the rest of 2004, the growth is to be carried by the global economic upswing, while private consumption is expected to stagnate (0.0%). According to the Fall Report, the export boom is set to weaken considerably in the second half of the year. Despite the upturn in advertising revenues in the first nine months of the year, a sustained recovery is not expected on the advertising market. No real market recovery is expected in There is no short-term recovery in sight for classified ads. On the basis of ongoing success in the introduction of new newspapers and magazines combined with further cost cutting effects and the result of the first nine months, the Management Board continues to expect that sales and EBITA for the whole of the 2004 financial year will be higher than 2003, even before adjustment for the Kirch settlement. 9

11 I N T E R I M F I N A N C I A L S TAT E M E N T S C O N S O L I D AT E D B A L A N C E S H E E T S Assets Sept. 30, 2004 in d 000 A. Fixed assets Dec. 31, 2003 in d 000 I. Intangible assets II. Tangible assets III. Financial assets B. Current assets I. Inventories II. Accounts receivable and other assets III. Securities IV. Cash and cash equivalents C. Prepaid expenses Stockholders equity and liabilities Sept. 30, 2004 in d 000 A. Stockholders equity Dec. 31, 2003 in d 000 I. Subscribed capital II. Revenue reserves III. Consolidated retained earnings IV. Consolidated net income V. Minority interests B. Provisions C. Liabilities D. Deferred income Includes own shares of c million 10

12 C O N S O L I D AT E D I N C O M E S TAT E M E N T S Q3/2004 in d 000 Q3/2003 in d 000 Q1 3/2004 in d 000 2) Q1 3/2003 2) in d Sales Change in inventories of finished goods and work in progress Other operating income Cost of materials Gross profit Personnel costs Depreciation/amortisation of intangible and tangible assets Other operating expenses Income from equity holdings Net interest balance Depreciation of financial assets and marketable securities Group income from operations Taxes Consolidated net income thereof earnings attributable to minority shareholders EBITA reconciliation Income from operations Net interest balance Goodwill amortisation EBITA including extraordinary items Extraordinary items Adjusted EBITA Q3: 3rd quarter 2) Q1 3: Januar 1 to September 30 11

13 C O N S O L I D AT E D S TAT E M E N T S O F C A S H F L O W Q1 3/2004 Q1 3/2003 in d 000 in d 000 Consolidated net income Depreciation/appreciation of fixed assets Change in provisions Other expenses/income with no cash effect Income/loss from the disposal of fixed assets Changes in inventories, receivables and other assets Change of other borrowed funds Cash flow from operating activities Outflow for capital expenditure on fixed assets Inflow from the sale of consolidated companies Cash flow from investment activities Change in financial liabilities Dividends paid Other changes Cash flow from financing activities Total cash flow Funds on September 30, Funds on January 1, / Changes in funds due to differences in the companies consolidated 66 Changes in funds with cash effects Q1 3: January 1 to September 30 In the statements of cash flow the payment flows are divided into the areas of operating, investment and financing activities. As company liquidity, other securities in current assets and cash and cash equivalents are included in funds. 12

14 G R O U P S E G M E N T R E P O R T Q3 Newspapers Magazines Printing Electronic Media Other/ Consolidation Total in d million External sales Internal sales Segment sales Sales in Germany Sales outside Germany Segment sales EBITA of which depreciation of which income from equity holdings Employees (average) Q1 3 2) Newspapers Magazines Printing Electronic Media Other/ Consolidation Total in d million External sales Internal sales Segment sales Sales in Germany Sales outside Germany Segment sales EBITA of which depreciation of which income from equity holdings Employees (average) Q3: 3rd quarter 2) Q1 3: January 1 to September 30 EBITA (Earnings before Interest, Taxes and Amortisation) is used for division sales. 13

15 C O N S O L I D AT E D S TAT E M E N T S O F S T O C K H O L D E R S E Q U I T Y Parent company Minority interests Subscribed Generated capital Group equity Ordinary shares in e 000 Accumulated other comprehensive income Adjustment item Adjustment from from currency initial application translation of the German Transparency and Disclosure Act Equity Adjustment item Minority capital for currency translation Equity Group equity December 31, Dividends paid Miscellaneous changes Net income for the period September 30, Parent company Minority interests Subscribed Generated capital Group equity Ordinary shares in e 000 Accumulated other comprehensive income Adjustment item Adjustment from from currency initial application translation of the German Transparency and Disclosure Act Equity Adjustment item Minority capital for currency translation Equity Group equity December 31, Dividends paid Revaluation of fixed assets Miscellaneous changes Net income for the period September 30,

16 EXPLANATORY NOTES TO THE INTERIM FINANCIAL STATEMENTS Axel Springer Group General notes The interim report on the period between January and September 2004 was prepared in line with the German Accounting Standard No. 6 (DRS 6) Interim Reporting of the German Accounting Standards Committee e. V. (DRSC). The accounting and valuation methods used for the interim financial statements as of September 30, 2004 correspond to those used in the consolidated financial statements as of December 31, Consolidated companies In the consolidated financial statements as of September 30, 2004, 35 German and 17 foreign companies were included in consolidation, in addition to Axel Springer AG. Thereof, four joint ventures were consolidated on a pro rata basis. Following the transfer of its orders to Axel Springer AG, GMZ Druckerei GmbH & Co. was deconsolidated and discontinued with effect of January 1, 2004, since the business was transferred to Axel Springer AG. AS Media Service GmbH was transferred to Ullstein GmbH. Berlin, November 2004 Axel Springer AG The Management Board Report of the Supervisory Board Audit Committee The interim report for the period January to September 2004 and the report of the auditor on the audit examination of the interim financial statements were submitted to the Supervisory Board Audit Committee. The documents were explained by the Management Board and discussed with the auditor. The Audit Committee approved the interim financial statements. Berlin, November 2004 Chairman of the Audit Committee Dr. Giuseppe Vita Disclaimer This Interim Report contains forward-looking statements with the connected risks and imponderables. The actual development of business and profits at Axel Springer AG and the Group may deviate materially in the future from the assumptions made in this Interim Report. This Interim Report represents neither an offer for sale nor the request to submit an offer for the securities of Axel Springer AG. The publication of this Interim Report does not bring with it an obligation to update the statements made in it. 15

17 Financial calendar Annual Results Press Conference March 9, 2005 Annual shareholders meeting April 20, 2005 Interim Report January March 2005 May 2005 Interim Report January June 2005 August 2005 Interim Report January September 2005 November 2005 Share information Q1 3/2004 Q1 3/2003 in d in d DVFA/SG earnings per share 2) Closing price 3) Highest price Lowest price Average price The Interim Report and current information on Axel Springer AG are available on the Internet: This Interim Report is also available in German. For more information on the Interim Report, please contact: Listing segment General Standard Security identification number ISIN DE Reuters SPRGn.F Bloomberg SPR GR Q1 3: January 1 to September 30 2) Calculation basis: 34.0 million shares in Q1 3/2003; 30.6 million shares in Q1 3/2004 (excluding own shares) 3) As of September 30, 2004 and September 30, 2003 Axel Springer AG Investor Relations ir@axelspringer.de Axel-Springer-Straße Berlin Telephone: + 49 (0) / Fax: + 49 (0)