Number of employees at year end (FTE) Structure of shareholders at 31 December 2010 (rounded) Market capitalisation (more than doubled on end 2005)

Transcription

1

2 Key figures Change in % EUR million Transactions EUR million Advertising EUR million Technologies EUR million Group EBITDA EUR million Consolidated revenue (external) Segments Group EBIT EUR million Grop EBT EUR million Group earnings after taxes EUR million Earnings per share EUR DEC DEC 29 Change in % Number of employees at year end (FTE) Total assets EUR million Equity EUR million Debt EUR million Equity ratio in percent Debt ratio in percent Structure of shareholders at 31 December 21 (rounded) Managing Board and Supervisory Board 6.7% Free float 29.7% Burda Digital GmbH 63.6 % Market capitalisation (more than doubled on end 25) EUR million Base: 25 to 21 year-end XETRA closing price of TOMORROW FOCUS share tomorrow focus ag 21

3 Development of Tomorrow Focus Group key figures Consolidated revenue (EUR million) Group EBITDA (EUR million) Group EBIT (EUR million) Earnings per share (EUR million).22 Equity ratio (clearly increased) Segment revenue Transactions 66.3% Advertising 33.% in percent Debt ratio Technologies 7.8% 27 Equity ratio Transactions 66.3% Advertising 25.% Technologies 8.7% Advertising 21.4% Transactions 7.% 52.1 Technologies 8.6% Transactions 65.4% Advertising 26.1% Technologies 8.4% 31 DEC tomorrow focus ag DEC DEC DEC 21

4 Highlights 21 Bye-bye Bunny! October 21: having decided to concentrate on pure internet business models, TOMORROW FOCUS leaves its stake in Playboy Germany in the safe hands of FOCUS Magazin publishing house. Internationalisation gathers pace 21: holidaycheck.pl is already Poland s thirdbiggest holiday booking platform measured by the number of visits and is heading for the top spot. The portal for the French market will be launched in spring 211.

5 Record year Revenue and earnings at new record levels. Financial 21 goes down as the most successful in the company s ten-year history. 1 percent finance November 21: TOMORROW FOCUS AG acquires the remaining shares in Finanzen1.de, a fast-growing portal for finance and stock market news. A healthy buy February 211: jameda recorded 1.5 million searches in January alone, a good reason for TOMORROW FOCUS to fully takeover the physician ratings portal. Breaking new ground January 211: ElitePartner introduces a new same-sex dating service for men and women. Men meet men and women meet women.

6 7 Content 6 6 Content Magazine 1 Strategy & Future News 24 Letter to Shareholders Cooperations, news, surveys, figures, facts 21: a round trip across TOMORROW FOCUS Group 28 So much achieved, so much more ahead Strategic factors in the success of TOMORROW FOCUS AG past, present and future 46 Focus on employees How we attract, motivate and support our employees 54 The Internet of Sustainability Utopia founder Martin Kleene explains how the Internet can help to promote sustainable development 6 The future is a jigsaw puzzle Alexander von Streit, Head of the Digital unit at FOCUS Online, on the future of the media 64 Establishing brands in a digital world Linda Abraham on the future of online advertising tomorrow focus ag 21

7 Content 7 74 Reports 7 Financials & Miscellaneous So much talent and energy in one small place 12 The TOMORROW FOCUS Share 14 Corporate Governance 18 Report of the supervisory board 112 Group management report 14 Consolidated balance sheet 142 Consolidated income statement Good prospects: from work placement to permanent job 144 User value deeply embedded in the DNA Consolidated statement of changes in equity 146 Consolidated chashflow statement 15 years of FOCUS Online: a success story with many variables and one constant 148 Consolidated non-current assets 21 Valuing staff and encouraging creative flair at Cellular 15 The smallest things can have a big impact Consolidated non-current assets Consolidated segment information 154 «Professional, relaxed, just really pleasant» Consolidated notes to the financial statement 21 Responsibility statement Top marks on jameda! How a trip to the dentist can be a positive experience 22 Glossary An open door 25 Index How valuable feedback from Finanzen1 users flows into product development 27 Legal notice HolidayCheck s International team plans new chapters for bestseller 74 Taking the kids out for a treat ElitePartner committed support for social projects 78 On the pulse of research Market research shapes new trends in online advertising Flying high with AdJug Making room for creativity Putting the user at the centre of things: TFT s formula for successful websites tomorrow focus ag 21

8 Magazine 8 Magazine 1 News Cooperations, news, surveys, figures, facts 21: a round trip across TOMORROW FOCUS Group tomorrow focus ag 21

9 MAGAZINE Magazine 9 tomorrow focus ag 21

10 Magazine News 1 Cooperations, trends, surveys, facts and figures 21 Change of address in Munich VIRGIN 3G Neumarkter Strasse 61, München, Germany is the new address for TOMORROW FOCUS AG and its subsidiaries TOMORROW FOCUS Media GmbH and TOMORROW FOCUS Technologies GmbH. On Friday, 17 December at 7 pm sharp, a removal team began the task of transporting 1,8 boxes and around 2 work stations from the old premises in Munich s Steinhauser Strasse. By the following Monday, all was ready to welcome staff at the new offices in the district of Berg am Laim. As the crow flies, it is only 8 metres from the old to the new address on the other side of the Leuchtenbergring. Annual Report 29 Best in Europe Meine Firma - app What are they saying about my company in the media? For the answer, why not try out Meine Firma (My company), a free German-language app for the iphone and ipad from Finanzen1.de. Just tap the icon for a review of the latest news about your company, wherever you are! The reports are compiled from over 12,5 online sources, including Not only did TOMORROW FOCUS AG s 29 Annual Report win Gold in the category Annual Report Media Company at the international Galaxy Awards; it also came away with a Grand Award for the best European submission. The annual Galaxy Awards are sponsored by the New York-based communications association MerComm. The aim of the competition is to recognise outstanding performance in the marketing of products and services. This year, the 21st Galaxy Awards attracted over 5 submissions from 16 countries. Prior to this latest accolade, TOMORROW FOCUS AG s 29 Annual Report, which was again produced entirely in-house, received Platinum for top place in the Media category at the Vision Awards, the world s biggest annual report competition run by the League of American Communications Professionals (LACP). It also won Gold in the categories Non-English Annual Reports Media and Illustrations Media at the International ARC Awards. 29 Annual Report as pdf file Meine Firma at the App Store QR (Quick Response) codes are two-dimensional barcodes that can be read by a smartphone using an app and take the user directly to a specific URL. tomorrow focus ag 21

11 MAGAZINE STRATEGIE & ZUKUNFT REPORTAGEN FINANZEN Magazine 11 Management Board welcomes new member Dirk Schmelzer has overall responsibility for Finance, Controlling, Investor Relations and Human Resources. Dr Dirk Schmelzer (43) was appointed to the Management Board of TOMORROW FOCUS AG in February. As Chief Financial Officer, he now has overall responsibility for Finance, Controlling, Investor Relations and Human Resources. Before joining the company, he held the post of Chief Financial Officer at HanseNet GmbH in Hamburg, Germany. This was preceded by three years as Managing Director and CFO at Telefónica Deutschland GmbH, which he helped to integrate into O2 following a successful turnaround. He began his career in 1997 as Controller at Telefónica O2 (Germany) and its predecessor companies, where he held a series of management positions leading up to his appointment as CFO. He studied economics in Cologne, Germany and Copenhagen, Denmark, and obtained his doctorate at the European University Viadrina in Frankfurt/Oder, Germany. The decision to expand the Management Board to three members was taken in response to a rapid increase in the size of the TOMORROW FOCUS Group driven by a sustained high level of growth. Survey - the 1 best-looking Men s Football World Cup teams The TOP 1 teams As chosen by Germany s single women germany (51%) brasil (3%) spain (27%) italy (24%) australia (24%) portugal (21%) argentina (2%) holland (15%) denmark (13%) england (12%) Alongside the goals and the action, there was a good deal of sex appeal keeping many women glued to the screens during Men s Football World Cup. In a survey of single women in Germany conducted by online dating agency ElitePartner.de, the country s national side, including Lukas Podolski (aka Prince Poldi) et al., was voted the most attractive team in the competition. Last place in the survey went to the England team. tomorrow focus ag 21

12 Magazine 12 reset.to For A Better World reset.to is an information and action platform operated by the charitable foundation RESET. It aims to generate greater interest in sustainable development issues and to make the most efficient possible use of donations. The work supported by reset.to includes development projects involving, for example, caste-free nursery schools in Southern India and drinking water fountains in Uganda. reset. to is currently preparing country-specific portals for India and China. It hopes by this means to capture the enthusiasm of local people for the idea of a sustainable world. TOMORROW FOCUS AG is helping reset.to to create these new portals and to construct a skate park in Afghanistan. For more information, please see TOMORROW FOCUS AG is helping reset.to to create new portals and construct a skate park in Afghanistan. Sponsored by HolidayCheck The tremendous speed and energy that has marked the successful growth of HolidayCheck can also be found in good measure in its adopted basketball team. In 211, the company s sponsorship deal with the HolidayCheck Baskets entered a fourth season. As one of the biggest employers in the region around the Swiss town of Bottighofen, HolidayCheck established a partnership with the team, which plays in the second national division, in October 28. The sponsorship deal with the HolidayCheck Baskets entered a fourth season. Not only do the Baskets bear the name of their main sponsor; the travel portal logo can also be found on the team s shirts, in the stadium and at regular matches watched by fans, when HolidayCheck holds a prize holiday draw. From the Head of IT to the Event Manager, staff come out in force to spur on the HolidayCheck Baskets, an enthusiasm that the company is keen to support by offering season tickets to all employees and arranging joint training sessions with the professionals. tomorrow focus ag 21

13 MAGAZINE STRATEGIE & ZUKUNFT REPORTAGEN FINANZEN Magazine 13 A Winners of the 21 Editorial Team Awards A hotel travel charme gothisches haus in wernigerode (Germany) B hotel haidachhof in fügen (Austria) C kronplatz-resort berghotel zirm in olang (Italy) D villa stella apartments in kavala (Greece) E sunis hotel kumköy beach resort & spa in side (Turkey) HolidayCheck Awards 99 hotels from around the world emerged as winners out of a total of 42, ratings submitted for the sixth annual HolidayCheck Awards. Altogether, there are ten categories including Popular with guests under 3 (U3), City trips and Wellness. Germany is the only country to produce a winner in each category. Italy contributed nine winners, while Austria, Egypt, Greece and Turkey each accounted for eight. Five particularly outstanding hotels were given a special award by the editorial team at HolidayCheck. Presenting the world s most popular hotels! tomorrow focus ag 21 B C D E

14 Magazine 14 3,74. million unique users reached by TOMORROW FOCUS Media s marketing network on average each month 7, million FOCUS Online readers every month 1... Over 1,,, page impressions recorded in 21 across all 4 internet portals operated by TOMORROW FOCUS Technologies 1,5 million physician searches per month on jameda.de 2 Every 2 hours: a new couple meet through ElitePartner 22 Monthly visits up 22 percent to 1.6 million in one year on Finanzen1 tomorrow focus ag 21

15 MAGAZINE STRATEGIE & ZUKUNFT REPORTAGEN FINANZEN Magazine 15 5,34 million downloads in 21 of apps developed by Cellular 4,2 million hotel ratings, photographs and videos for over 1, hotels in 218 countries on HolidayCheck. 3 million unique users every month on AdJug 1 vacancies with the TOMORROW FOCUS Group at the beginning of March 211. More information can be found (in German) at tomorrow focus ag 21

16 Magazine 16 The TOMORROW FOCUS Online Dinner The fifth annual TOMORROW FOCUS Online Dinner held in Munich in January was attended by around ninety renowned national and international decision-makers from the Internet and media industries. The guests took advantage of the occasion to make new contacts and exchange views on the latest business issues. Within just a few years, the dinner has established itself as a must-attend event in the supporting programme of the DLD conference, which is organised each year by Dr Hubert Burda and Dr Joseph Vardi. from l. to r.: Stefan Winners (TOMORROW FOCUS), Thomas Ebeling (ProSiebenSat.1), Christoph Schuh (TOMORROW FOCUS) from l. to r.: Dirk Ströer (Media Ventures), Konstantin Sixt (Sixt AG) Best in test jameda.de number one for quality A quality review of ten physician rating portals was conducted in autumn 21 by Germany s Agency for Quality in Medicine on behalf of the German Medical Association and the country s National Association of Statutory Health Insurance Physicians. jameda.de emerged in top position as the only portal to meet 85 percent of the stipulated quality criteria.* The aim of the review was to systematically examine and compare the quality of the ten leading physician rating portals on the basis of forty criteria covering legal issues, data protection, transparency, the prevention of misuse and user-friendly operation. * According to documentation released by the Agency for Quality in Medicine. Official rankings were not published. tomorrow focus ag 21

17 MAGAZINE STRATEGIE & ZUKUNFT REPORTAGEN FINANZEN Magazine 17 RebRand The old TOMORROW FOCUS AG logo, created following the business combination of Focus Digital AG and Tomorrow Internet AG, has cast off its outdated typography in favour of a more uniform and modern design. The new globe symbol is intended to highlight the company s dynamic performance and future prospects. Also the AG has disappeared from the logo based on the standard for logos. The introduction of a new branding was accompanied by a relaunch of the German parent company s website at which now emphasises the diversity of TOMORROW FOCUS AG and that of its subsidiaries and established brands. Marketer s darling There are several forms of advertising on the internet. Three employees of the online marketing company TOMORROW FOCUS Media tell us about their personal favourites. Stefanie Puschke, Product Manager Travel /Health The sidekick ad My favourite is the sidekick ad. At first this looks like a normal skyscraper ad at the right-hand edge of the website. When you click on it, it kicks to the side, as the name suggests. This opens an area where users themselves can get involved, i.e. use the mouse to change the advert by moving things around. It s not only great fun it also means there is a high level of interaction with the product being advertised. Anna-Lena Mikoteit, Product Manager Consumer Brands The electronic magazine My absolute favourite product is the new electronic magazine firstly because, by linking advertising and editorial background information, it reinforces a product s relevance to customers. Also, it provides a basis for the editorial team and the advertising customer to create common themes, which are thoroughly informative and which users can really get stuck into. Side-kick ads as featured on Germany s TV Spielfilm website allow users to interact with the advertising feature. tomorrow focus ag 21 Alexandra Thomas, Head of Product & Publisher Management Weather targeting For me, one of the most fascinating products of the year is the weather targeting product we developed in-house. This allows us to take into account the regional weather situation when we are creating an advertising campaign. Users always see the advertising that s most appropriate to the weather conditions in their region: if it s raining, an advertisement mentioning wet weather appears; if it s sunny, the ad content refers to nice weather. This means the ad always has a direct connection to what s going on in the outside world at any particular time. So the weather is a key success factor of our campaigns.

18 Magazine 18 Relaunch The new website at illustrates the sheer diversity of TOMORROW FOCUS AG, its subsidiaries and established brands. The Home page (in German only) contains a colourful mixture of teaser items from every area of the business. Information about the company and its structure can be found under the heading Company, and a new relational browser has been added to help visitors navigate their way around the Group. The Brands section contains news from the subsidiaries of all the TOMORROW FOCUS Group s business divisions. The Newsroom has been designed to provide a ready source of logos, presentations and video clips for journalists in a hurry. The Investor Relations page is geared primarily towards investors and analysts with a particular interest in figures. It includes a Finanzen1 chart tracking the latest price movements of the TOMORROW FOCUS share and all the major stock market data relating to the company. Finally, the section entitled Jobs & Karriere (in German only) contains information about ways of joining TOMORROW FOCUS AG as well as a selection of useful tips for applicants. The company s new look following the website relaunch In the news... 2/211 9/21 Marc Al-Hames (32) was appointed Head of Corporate Kerstin Trottnow (32) was promoted to Commercial Mana Development at TOMORROW FOCUS AG in February 211. ger at TOMORROW FOCUS AG in September 21. 2/211 7/21 Philipp Goos (34) joined jameda GmbH as Managing Direc Jost Schwaner (44) became Managing Director at Elite tor in February 211. Prior to this new appointment, he was Medianet GmbH in July 21. Head of Corporate Development at TOMORROW FOCUS AG. 11/21 7/21 Oliver Eckert (38) took over as Managing Director at TO Timo Salzsieder (42) took up the post of Managing Director MORROW FOCUS Media GmbH in November 21. He also at TOMORROW FOCUS Technologies GmbH in July 21. holds the post of Managing Director at Finanzen1 GmbH. tomorrow focus ag 21

19 MAGAZINE STRATEGIE & ZUKUNFT REPORTAGEN FINANZEN Magazine 19 City rankings where is the best place to live in Germany? Where can you find the lowest rents, the finest beer gardens or the most sunshine? Each German city has its own good points. FOCUS Online readers rated 81 German cities in a number of categories: the housing market, prices, education, facilities for children and senior citizens, climate, nature, leisure, culture, transport and safety. The overall winner was Aachen. Hmm, could it be anything to do with those delicious gingerbread biscuits? Now there is an incentive for the people of Berlin, Cologne and Munich, all of whom traditionally see their own city as the most beautiful in Germany if not the whole world, to keep casting their votes at Aachen The TOP 5 German cities Hamburg aachen (2,17) freiburg im breisgau (2,74) bonn / hamburg (2,76) heidelberg (2,77) bielefeld / münster (2,78) * average mark in brackets from 1= excellent to 6 = poor Employees Day at TOMORROW FOCUS Munich was again the venue for the TOMORROW FOCUS Group s annual Employees Day in July 21. The event was held at the Alte Kongresshalle and was attended by around 3 employees from every one of the Group s German and international locations. During the day, CEO Stefan Winners and CMO Christoph Schuh of the Management Board, Chairperson of the Supervisory Board Dr Paul-Bernhard Kallen and the Managing Directors of each Group company offered a detailed insight into aspects of strategy and the latest trends. At the end of a day packed with information and new impressions, it was time for the summer party. The day ended in relaxed mood with human soccer and a barbecue. tomorrow focus ag 21

20 Magazine 2 4 top tips from MietwagenCheck MietwagenCheck Enjoy your trip! 1. What should I look out for when I accept a hire car? Even though you may be keen to get away as quickly as possible, give yourself time to check the vehicle carefully. Look all over for any dents, damage to the windows or scratches. Don t forget the tyres, rims and fuel level and make sure that the lights, windscreen wipers and air conditioning are working. Ask one of the rental firm s employees to make a record of any damage you find. If there is no one around, it s a good idea to take some photographs with your camera or your mobile phone. 2. Is returning the car to a different location always expensive? If the pick-up and return point are different, this is known as one-way hire. Many firms charge extra for this service, although if you hire the car for seven days or longer, it is often free. Check beforehand! 3. How do hire firms charge for fuel? Many hire firms operate a full-full system, i.e. you pick up and return the car with a full tank. In this case, it can get expensive if you don t fill up completely at the end of the hire period, as the company will charge you a service fee as well as the cost of any missing fuel. Be particularly careful if the hire firm operates a full-empty system, where you return the car with an empty tank. Some make a hefty flat-rate charge for the initial full tank, and you will not be refunded for any leftover fuel at the end of the hire period. 4. What should I remember when I return the hire car? You ve had a great trip, but now it s time to head home. However, we recommend that you don t take any chances when you hand back the car. Give yourself enough time to request a written confirmation that you have returned the vehicle in perfect condition. Top car hire tips from MietwagenCheck tomorrow focus ag 21

21 MAGAZINE STRATEGIE & ZUKUNFT REPORTAGEN FINANZEN Magazine 21 In search of a new indicator. Although online display advertising generates relatively few clicks, surveys prove it plays a key role in enhancing brand profile. Underestimated advertising impact According to a recent survey conducted by TOMORROW FOCUS and comscore entitled Brand Advertising Online in Germany, around 85 percent of German internet users did not click on any display advertising at all last August, and 62 percent of all clicks were generated by a tiny group of heavy clickers who made up just 3 percent of all users. Furthermore, the click rate for Germany in 29 averaged a mere.11 percent. To put it another way, an advertising item would have to be displayed a thousand times to attract a single click! At the same time, surveys conducted by comscore in Western Europe prove that display advertising can exert a significant positive influence on consumer behaviour despite low click rates. To illustrate the point, display advertising succeeded in boosting visitor numbers to the sites being advertised by 72 percent. It also increased the number of searches for advertisingspecific terms by an average of 94 percent. This latest survey demonstrates that click rates, which are a very commonly used indicator, can underestimate the impact and success of display advertising and can therefore be misleading. The key role of display advertising in establishing new brands is currently not reflected in many survey results. In an attempt to remedy this, TOMORROW FOCUS is currently working on a new method of gauging the success of online advertising which it intends to present later in the year. Details of the survey can be found at or via the following barcode. Details of the survey Brand Advertising Online in Germany QR (Quick Response) codes are two-dimensional barcodes that can be read by a smartphone using an app and take the user directly to a specific URL. tomorrow focus ag 21

22 Strategy & Future 22 Strategy & Future Letter to Shareholders 54 Utopia founder Martin Kleene explains how the Internet can help to promote sustainable development So much achieved, so much more ahead Strategic factors in the success of TOMORROW FOCUS AG past, present and future 46 The Internet of Sustainability 6 The future is a jigsaw puzzle Alexander von Streit, Head of the Digital unit at FOCUS Online, on the future of the media Focus on employees How we attract, motivate and support our employees 64 Establishing brands in a digital world Linda Abraham on the future of online advertising tomorrow focus ag 21

23 STRATEGY & FUTURE Strategy & Future 23 tomorrow focus ag 21

24 Letter to Shareholders 24 Dear Shareholders, back in autumn 25, after drawing up our latest strategy, we promised the capital markets that we would double our revenue to EUR 1 million and increase our operating profit to EUR 1 million by the financial year 21. In the event, we generated EUR 128 million in revenue and an operating profit of almost EUR 16 million to set two new records in the around ten years since the company was formed. This success has been achieved thanks to the right corporate strategy and the drive, perseverance and personal commitment shown by the management and entire workforce of the TOMORROW FOCUS Group when it came to implementing that strategy. Today, the high-profile brands operated by TOMORROW FOCUS AG can be found in extremely promising and fast-growing areas of the Internet. Looking ahead, thanks to its strong financial position, the company has tremendous prospects. Our challenge now is to make the most of them. Dynamic growth The speed with which TOMORROW FOCUS AG is currently growing is clear from the year-on-increases achieved in 21. Revenue was up 39 percent and the result from operating activities by as much as 78 percent thanks to the consistent exploitation of economies of scale. Earnings per share showed an impressive leap of over 3 percent, partly on account of the sale of Playboy. Once again, all three business segments contributed to the increase in revenue. The Transactions segment grew by around 3 percent, Technologies by around 37 percent and Advertising even in the region of 7 percent. This tangible growth in revenue brought a corresponding improvement in earnings in the Transactions and Technologies segments, although earnings in the Advertising segment were held back by start-up losses from new high-growth activities and from amortisation and depreciation charges (the latter partly as a result of tomorrow focus ag 21 Dr Dirk Schmelzer Chief Financial Officer

25 MAGAZIN STRATEGy & FuTuRE REPORTAGEN FINANZEN Letter to Shareholders 25 Stefan Winners Christoph Schuh Chief Executive Officer Marketing Officer tomorrow focus ag 21

26 Letter to Shareholders 26 a change to a shorter write-off period for capitalised software). The equity ratio, which acts as an indicator of balance sheet stability, rose from 53 percent at the end of 29 to 6 percent as at 31 December 21. This was due to an increase in accumulated profit and consistent efforts to reduce external borrowings. Continued growth at HolidayCheck and ElitePartner Within the Transactions segment, another significant increase in revenue at HolidayCheck and ElitePartner was largely attributable to targeted marketing activities. HolidayCheck s first-ever TV advertising spots in the summer were a great success, and throughout 21 HolidayCheck AG managed to defend its position as Germany s leading independent travel agent (according to IVW, the German Information Society for Measuring the Distribution of Advertising Media), ahead of competitors such as Expedia.de and ab-in-den-urlaub.de. Business development at EliteMedianet GmbH, which operates the online dating portal ElitePartner. de, was also highly satisfactory thanks to a steady increase in membership numbers and successfully implemented price increases. In October, we decided to accept an offer from Focus Magazin Verlag for our stake in Playboy Deutschland Publishing GmbH. This decision was part of our new dynamic growth strategy, which provides for strong business growth up to 215 and establishes a focus on purely digital operations. The financial year 21 produced a mixed revenue development picture for the two divisions making up TOMORROW FOCUS Media GmbH, which generates the biggest share of revenue in the Advertising segment. While the digital marketing business benefited throughout the year from an increase in new orders thanks to its strong position as Germany s second biggest Internet marketing firm, in the first half-year especially the news portal FOCUS Online suffered from a downturn in advertising bookings in the highly competitive news portal sector. Fortunately, this trend was reversed in July 21 following the relaunch of the portal. AdJug Ltd., which has been fully consolidated since December 29 and operates two online advertising marketplaces in the UK and Germany, slightly exceeded expectations in 21 to generate a year-on-year increase in revenue of nearly 1 percent. It narrowly missed breaking even on account of the scheduled amortisation of purchase price allocations. A wide range of new features was introduced by finanzen1.de, the portal for financial and stock market news operated by Finanzen1 GmbH, and jameda.de, the physician ratings portal operated by jameda GmbH. As a result, both platforms achieved a considerable increase in their reach figures and overtook some of their major competitors. The next step is to ensure that the two portals return a profit. As a sign of our confidence, we recently increased our stake in both companies to 1 percent. Strong demand for mobile applications Looking at the Technologies segment, Cellular GmbH, an all-round provider of mobile Internet services and apps, took advantage of strong demand for mobile applications to boost its revenue by a large margin. TOMORROW FOCUS Technologies GmbH, which provides technical and creative services for web-based IT solutions, suffered in financial 21 from the postponement of orders by major customers. The prospects of TOMORROW FOCUS AG for the current financial year are outstanding. A much improved economic situation and early indications from the Group s business segments point to a continuation of the established pattern of growth. All three companies making up the Transactions segment are shaping up to deliver substantial increases in both revenue and earnings over the current financial year. HolidayCheck AG aims to achieve strong, double-digit growth in Germany, Austria and Switzerland, and the brand is becoming increasingly international. The Polish-language portal at holidaycheck.pl is performing well, and the company is preparing to enter the French market around the middle of the year. To this end, it has assembled an excellent French management team, which started work a short time ago. Further international expansion is in the pipeline. The online dating agencies, ElitePartner.de and AcademicPartner.de, operated by EliteMedianet GmbH will continue to invest in targeted marketing activities to reinforce their established market position in Germany. EliteMedianet is currently drawing up plans to expand its operations in Austria and Switzerland, and a same-sex dating service was launched at the beginning of the year. Jameda GmbH, which has been consolidated in the Transactions segment since January, intends tomorrow focus ag 21

27 MAGAZIN STRATEGy & FuTuRE REPORTAGEN FINANZEN Letter to Shareholders 27 to focus on achieving a further improvement in its reach figures while intensifying its marketing activities. By doing so, it expects to generate considerable growth in revenue. Favourable conditions in advertising market Overall, the Advertising segment anticipates a substantial increase in both revenue and earnings. One of the main drivers of growth in this segment is likely to be TOMORROW FOCUS Media GmbH, whose Digital Marketing division can again look forward this year to a healthy volume of orders after a good start to 211. The company aims to strengthen its position as Germany s second-biggest online marketing specialist by attracting new customers to complement its existing portfolio. The challenge this year for our news portal FOCUS Online is to increase its reach by introducing innovative new ideas and products, and by doing so to make the site more attractive for advertising customers without losing sight of its cost structures. The current market environment provides a good opportunity for AdJug Ltd., our advertising marketplace in the performance segment, to maintain its pattern of vigorous growth and to return a profit for the first time in 211. Finanzen1 GmbH is all set to demonstrate that in 211 it can achieve a significant level of advertising revenue as well as a major boost to its reach figures. This will involve driving its way into the list of Germany s top five portals for financial and stock market news in terms of both reach and advertising. Further growth in revenue and earnings is also planned for the current financial year in the Technologies segment. Cellular GmbH should again be able to exploit the trend towards mobile applications and achieve a further improvement in its results. Given the present economic situation, TOMORROW FOCUS Technologies GmbH also has the potential to increase its profitability by focusing on ways of attracting new customers and orders. We have made a great start to the year, with HolidayCheck and TOMORROW FOCUS Media, our digital marketing specialist, setting the pace. We are confident that 211 will go down in the annals of TOMORROW FOCUS AG as another highly successful year. TOMORROW FOCUS AG has established strong brands and a high-quality marketing portfolio in extremely promising and fast-growing areas of the Internet. It has also developed an excellent financial position. In combination, these factors leave us ideally placed to achieve continued vigorous growth beyond 211 and to exploit the opportunities that arise. With this in mind, we have adopted an ambitious strategy up to 215 that anticipates growth in revenue and EBIT to EUR 25 million and EUR 3 to 4 million respectively. In terms of revenue, we aim to achieve around EUR 2 million of this total through organic growth, e.g. from the expansion of digital marketing and the further internationalisation of HolidayCheck and ElitePartner, and the remaining EUR 5 million from acquisitions in the areas of transactions and online advertising. We intend to focus rigorously on profitable companies. Thanks to our strong cash flow and a low level of debt, we can target even large acquisitions.» HolidayCheck AG aims to achieve strong, double-digit growth in Germany, Austria and Switzerland.«To put it succinctly, TOMORROW FOCUS AG is growing fast and generating strong income. It combines the qualities of a high-growth and high-value business in one enterprise an outstanding foundation on which to achieve further sustainable growth. Yours sincerely The Management Board Video: Stefan Winners interview with the German investors television The QR-code ( Quick Response ) is a two-dimensional bar code that can be read using an app from a smartphone, and leads directly to the required URL tomorrow focus ag 21

28 So much achieved, so much more ahead 28 So much achieved, so much more ahead The TOMORROW FOCUS strategy tomorrow focus ag 21

29 MAGAZIN STRATEGY & FUTURE REPORTAGEN FINANZEN So much achieved, so much more ahead 29

30 So much achieved, so much more ahead 3 How TOMORROW FOCUS reinvented itself below: TOMORROW FOCUS CMO Christoph Schuh right: Milestone planning one outcome of the 25 strategy conference Today, TOMORROW FOCUS ag is a fastgrowing and confident internet company with successful business segments and brands, an excellent track record of earnings and income and a bright future. Just over five years ago, it would have been difficult to foresee just how successful the company was to become. of over EUR 1 million on the year-end balance sheet for 24, the picture was not all roses. Back in 25, analysts familiar with the company were not entirely convinced by its prospects. On 29 May of the same year, Oppenheim Research published a study under the heading Positive news flow still some time ahead. I Ready to change course After his appointment as CEO in June 25, Stefan Winners observed that the existing management team at TOMORROW FOCUS AG was fully aware of the need to change course as a matter of urgency. There was, he noted, a tremendous willingness to help shape the process of change. Together with my Management Board colleague Christoph Schuh and the team of advisors from Skillnet, one of my first actions on taking office was to conduct a nononsense strategic review that involved evaluating the performance of all our business segments, while at the same time looking for potentially interesting new areas of business. The tasks of coordinating the process of strategic and organisational development and drawing up a new personnel strategy were given to Marion Wolff, International Project Leader at St. Gallen University s Institute for Technology Management. The results of this work were presented to the Management Board of TOMORROW FOCUS AG at the Quo Vadis workshop on the shores of Lake Eibsee. The presentation was followed by a joint discussion and evaluation session that lasted well into the night. At the end of the three-day workshop, the highly ambitious cornerstones of the new corporate strategy were in place. By the financial year 21, the aim was to identify three new business areas, double the company s revenue to EUR 1 million and boost the operating result (EBIT) to EUR 1 million. t is 21 October 25, a mild, sunny autumn day on the edge of the Bavarian Alps. The slopes of the Zugspitze, already decked in a mantle of snow, are reflected in the crystal-clear waters of Lake Eibsee. A group of around twenty-five men and women have just arrived at the Hotel Eibsee at this early hour. The entire second-level management team of TOMORROW FOCUS AG, together with a number of chosen specialists, had been invited by the Management Board to take part in a three-day strategy workshop entitled Quo Vadis TOMORROW FOCUS AG 21? From a quick glance at the list of items on the agenda, which includes Developing a strategy for TFAG 21 and Presentation, discussion and assessment of the Top 15 business segments, it is clear that the group is here to shape the future of TOMORROW FOCUS AG. not all roses By 25, after its formation in 21 from the merger of Focus Digital AG and Tomorrow Internet AG, TOMORROW FOCUS AG had united various online journalism portals, two periodicals and an online marketing services provider under a single roof. However, with a loss carryforward Painful cuts Back in November 25, when I presented our new strategy at the German Equity Forum in Frankfurt

31 STRATEGY & FUTURE So much achieved, so much more ahead 31 am Main, I met with critical comments from investors and analysts who had lost some confidence in the company over previous years. They simply didn t think we could do it and laughed at our forecasts, says Stefan Winners. Now we are the ones who are laughing, he adds with a grin. TOMORROW FOCUS AG s CEO has good reason to smile. In the financial year 21, the company exceeded those strategic targets by a considerable margin with revenue of EUR 128 million and an EBIT figure of EUR XX million. Getting there was not easy, however, and the company had to make some painful cuts. The introduction of a transparent, performance-based culture also involved a major restructuring of the management team, with the result that today only three of the senior managers and heads of division from 25 are still with the company. A firm deci- sion was taken to close down all those areas that were not able to make a profit and to sell off any companies that did not form part of TOMORROW FOCUS AG s core business. Our strong print brands Bellevue and More and Playboy were no longer compatible with our Internet-only strategy, observes Stefan Winners. At the same time, we felt that they had a better chance to succeed as part of a publishing outfit rather than within an Internet group. The most important element of the company s new strategy involved remorselessly identifying and evaluating potential acquisitions. Our search was based on a matrix that helped us to focus on companies in market segments with attractive growth prospects, explains Friedrich von Scanzoni, then Head of Corporate Development and now Chief Business Development Officer (International) at HolidayCheck. We were particularly keen on the areas of Travel and Dating, although we also saw lots of potential in Health and Finance. tomorrow focus ag 21

32 So much achieved, so much more ahead 32 Investment jewels So it was that TOMORROW FOCUS AG soon came across HolidayCheck, a hotel ratings portal set up as recently as 23. The founders of this fastgrowing start-up were on the lookout for a capital provider and media partner to enhance their media profile and support further growth. When we met the founders for the first time, we saw immediately what enormous potential the company had. We also realised that we were the ideal partner for them and that we could work together to help HolidayCheck expand, explains Stefan Winners. The chemistry was right, an agreement was swiftly reached, and by July 26 TOMORROW FOCUS AG sealed its majority takeover of HolidayCheck AG a decision that has since proven to be spot-on. It was precisely one year later that TOMORROW FOCUS AG again demonstrated its flair for uncovering potential with its majority takeover of EliteMedianet GmbH, which had been set up in 24 and operated a premium online dating agency called ElitePartner.de. As was the case at HolidayCheck, the founding team was highly motivated and keen to expand what back then was a small outfit with the help of a large and financially solid partner with media experience. As it turned out, the strategy was again successful. In 21, just three years after the takeover and based on an own estimate, ElitePartner established itself as the market leader in the premium segment. In the years 28 and 29, following its successful entry into the Travel and Dating markets,»back in November 25, when I presented our new strategy at the German Equity Forum in Frankfurt am Main, I met with critical comments from investors and analysts.«stefan Winners, CEO TOMORROW FOCUS AG made three early-stage investments in the areas of Finance, Health and Advertising. All of these, the finance and stock market portal Finanzen1.de, the physician ratings portal jameda.de and the residual advertising marketplace Adjug have since delivered strong and consistent growth in terms of both reach and revenue. As such, they are well on the way to earning a place in the hall of fame for successful investments in the history of TOMORROW FOCUS AG. Further entrepreneurial opportunities Looking back at the strategy crafted in 25, Bodo Kräter, Managing Partner at Skillnet believes that the most important achievement was not only that of identifying attractive business models and companies, but also the smooth integration of new employees from different business cultures and countries. In his view, the fact that TOMORROW FOCUS AG is now performing better than ever with even greater potential is down to its new DNA, which he describes as entrepreneurial, innovative, team-minded, international and very open to talented individuals and attractive business models. All of which puts TOMORROW FOCUS AG in an outstanding position to achieve the targets in its recently agreed Strategy 215 and a continued pattern of sustainable growth. tomorrow focus ag 21

33 STRATEGY & FUTURE So much achieved, so much more ahead 33 tomorrow focus ag 21

34 So much achieved, so much more ahead 34 The secret of success A résumé of Marion Wolff, independent management consultant TOMORROW FOCUS ag is a successful business. This was not achieved by mere chance, however, but by a kind of master plan. Management consultant and company insider Marion Wolff looks behind the scenes at TOMORROW FOCUS ag to reveal what it was in her view that set it firmly on the path to success. at the same time, she examines how this master plan could be refined to ensure lasting success in the future. 25 to 21 The prospect of looking back over five years of strategic and organisational development at TOMORROW FOCUS and briefly identifying those factors that have really contributed decisively to its success is an exciting challenge. But what is the most logical approach? Should we examine individual organisational units, their development and consolidation? Are those the factors that have made TOMORROW FOCUS AG successful? Perhaps we should base our assessment on the old St. Gallen system-oriented management theory as propounded by Ulrich; or on the more recent strategic model devised by Andrews at Harvard Business School; then again, how about applying the even more up-to-date General Management Navigator created by Müller-Stevens? Would the most salient results then provide a list of factors to explain the success of TOMORROW FOCUS AG? Does the secret lie in uncovering the strengths of the workforce, the (de)centralised management structure, the Management Board or the Supervisory Board? Can we shed light on the origins of the company s success by undertaking a systematic analysis of each acquisition? As none of these systematic approaches appears to offer a comprehensive picture, the observations below simply represent the perspective of a facilitator who has had the opportunity to learn about TOMORROW FOCUS AG as an organisational whole through various discussions and workshops in different units. achieving organisational maturity through a focus on human resources Sustainable personnel development measures have been in place since 25, and their impact is clearly visible. Staff have responded very positively to the introduction of development programmes such as the 3x3 series of seminars, in which potential candidates for senior management positions can learn the principles of responsible leadership. This also increases the overall effectiveness of management at TOMORROW FOCUS, as can be seen from the improved ratings achieved in regular employee surveys. The consistent use of assessments in the selection of candidates for management positions is one way of promoting effective management; another has been the implementation of a fair feedback process through a system of target-setting and feedback interviews, involving a meeting at least once a year between staff and their line manager. Compared with 25, it is clear that the company has reached a much higher degree of organisational maturity, especially as a result of the consistent application of a personnel development strategy. negotiating the structure jungle The organisation has established a clear structure, and the key positions at parent company and subsidiary level are either filled or are in the process of being so. The shift towards the role of a holding company has been completed, and new managing directors have been recruited or appointed to avoid a situation where members of the Management Board have to perform a dual role at parent and subsidiary level. All duties and roles are understood implicitly. In the manner of a sailing boot tacking in the wind, TOMORROW FOCUS AG shows great flexibility in dealing with the challenges of each new day. The emotional nature that sometimes characterised the interaction has now given way to a professional, solutions-based approach allowing everyone to focus on a common objective. decentralised organisational development Establishing a decentralised structure for organisational development is another key success factor. tomorrow focus ag 21

35 STRATEGY & FUTURE So much achieved, so much more ahead 35 Management consultant Marion Wolff has advised on strategic planning at TOMORROW FOCUS AG since 25.»Just about every corner of TOMORROW FOCUS AG and its extended family of companies can boast a number of highly skilled individuals of the sort any organisation would dearly love to recruit. «The commitment shown by all senior managers, who meet with their managerial staff at least once a year to discuss the overall development of their organisational units and plan their strategic focus, has provided a major development boost to some of the companies in the Group, one that is attributable above all to the clarity and focus established jointly by management and staff and an emphasis on meeting the explicit objectives of the organisation. Outstanding expertise Just about every corner of TOMORROW FOCUS AG and its extended family of companies can boast a number of highly skilled individuals of the sort any organisation would dearly love to recruit. The TOMORROW FOCUS Group has more than most. Some are well known beyond their own unit; some work away in the background. They are responsible for design, development, marketing and presentati- on, and they love what they do. Even when things get a little hectic around them, their brilliant ideas and contributions continue to flow, one more success factor at the TOMORROW FOCUS Group. Sensors and serendipity Let us not forget the Management Board, which over the last five years has shown an uncanny knack for identifying risks and opportunities. Can that be described as a skill? Is it not too implicit if we are trying to put together a rational explanation for the success story of an organisation? Presumably that depends on your perspective. Along with many other scientists in the field, Storch believes that the quality of decisions is enhanced by and now I am simplifying the exact scientific wording a dialogue between the head and the stomach, regardless of whether that dialogue takes an implicit or explicit form. In this context, it is worth digressing briefly to examine the fascinating word serendipity, established in the English language by Walpole in 1754 tomorrow focus ag 21