Interim Report Q1/06 January 1 to March 31, 2006

Interim Report Q1/06 January 1 to March 31, 2006

INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG 1 Key Figures Group Key Figures Group Q1/2006 Q1/2005 Change in millions IFRS IFRS year-on-year Revenues 566.8 578.7 (2.1) % thereof advertising and circulation revenues 528.7 517.9 2.1% EBITA 1) 91.2 80.7 12.9% EBITA margin 16.1% 13.9% Consolidated net income 67.2 47.6 41.2% EBIT 1) 91.2 80.7 13.0% EBITDA 1) 106.2 100.1 6.1% Total assets 2) 2.649.0 2.612.0 1.4% Equity 2) 1.362.4 1.185.0 15.0% Equity ratio 51.4% 45.4% Capital expenditures 9.7 19.6 (50.5) % Cash flow from operating activities 45.5 33.3 36.6% Earnings per share (in ) 2.16 1.54 40.3% Closing price (in ) 112.00 92.00 21.7% Employees (average number) 9,591 10,733 (10.6) % 1) Adjusted for non-recurring effects 2) At March 31, 2006 and at December 31, 2005, respectively.

2 INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG Interim Report Axel Springer Group Amid an operating environment that benefited from the positive impetus of the advertising market, but was also beset with structural challenges, Axel Springer generated higher revenues in its core business and substantially higher earnings in the first quarter of 2006, thanks to increased advertising revenues and the continued practice of strict cost discipline. The earnings before interest, taxes and amortization of goodwill (EBITA) amounted to 91.2 million, as compared with 80.7 million in the prioryear period, and the consolidated net income came to 67.2 million, as compared with 47.6 million in the prior-year period. The earnings per share reached 2.16, after 1.54 in the prior-year period. Revenues from the core business, the combined total of advertising and circulation revenues, rose from 517.9 million in the prior-year quarter to 528.7 million. Total revenues amounted to 566.8 million, lower than the correspondding prior-year figure of 578.7 million, which included still the rotogravure printing revenues before the printing plants were contributed to the joint Venture Prinovis at July 1, 2005. For the full year 2006, the Management Board anticipates a moderate increase in revenues from the core business. Because the discontinuation of rotogravure revenues resulting from the spin-off of rotogravure activities to the joint venture Prinovis will be reflected in the company s full-year results for first time in 2006, the total consolidated revenues for the full year are expected to be slightly lower than the prior-year figure. For 2006, the Management Board intends to step up capital expenditures in the core business of German-language publications, as well as the internationalization and digitization of the company s business. Depending on the scope of these capital expenditures, the EBITA for 2006 could possibly be lower than the record level set in 2005, despite the continued practice of strict cost discipline. General economic environment Germany: Reviving economy, moderate consumer spending The German economy expanded at a brisk rate in the early months of 2006. In the estimation of the country s six leading economic research institutions, foreign demand for German goods continued to be strong. Retail sales have risen moderately since the beginning of the year, although disposable incomes were only slightly higher. Consumer spending continued to be weak, as the persistently high energy prices cut into the purchasing power of consumers. Consumer prices in the first quarter of 2006 were 2.0 % higher than in the year-ago period. Business developments Core business strengthened, internationalization continued Amid an operating environment that benefited from the positive impetus of the advertising market, but was also beset by structural challenges, Axel Springer successfully expanded its core business, posting moderately higher revenues and considerably higher earnings, both in the Newspapers segment and the Magazines segment. This positive performance was led by the successful development of established titles and the new publications that have been launched in Germany and abroad in the last two years. Acquisition of ProSiebenSat.1 Media AG denied Axel Springer AG had intended to acquire a majority interest in ProSiebenSat.1 Media AG and to establish television as the company s second core business. On February 1, 2006, however, after the German Cartel Office rejected the deal and the Media Concentra-

INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG 3 tion Commission issued a negative decision as well, the parties decided not to pursue the acquisition any further. In view of the numerous economic and legal uncertainties associated with a possible appeal or ministerial proceeding, the parties chose not to lodge such an appeal or procedure, as it would entail unacceptable risks for all parties. In order to establish legal clarity for future acquisitions, Axel Springer AG filed an appeal against the rejection order of the German Cartel Office on February 23, 2006. Newspapers With an average paid circulation of 3.5 million units and steady circulation revenues, BILD continued to strengthen its position in regional markets. BILD am SONNTAG, Germany s biggest Sunday newspaper, maintained its circulation figures and increased its advertising revenues. This newspaper is considered to be an especially desirable medium for print advertising related to this year s World Soccer Cup. Newspapers Germany Net paid circulation IVW, average per issue in Q1/2006 BILD 3,545,215 BILD am SONNTAG 1,810,086 SPORT BILD 455,801 DIE WELT 251,660 WELT am SONNTAG 401,761 HAMBURGER ABENDBLATT 262,986 BERLINER MORGENPOST 148,670 B.Z./B.Z. am SONNTAG 205,128 The WELT Group continued to improve its advertising revenues in the first quarter. The combined average paid circulation of WELT and WELT KOMPAKT rose 13 % over the prior-year figure to around 252,000 units. Since March, WELT KOMPAKT is also available as an e-paper. WELT am SONNTAG also increased its circulation. Despite fierce competition in the Berlin newspaper market, Axel Springer s circulation revenues in that market held steady on the prior-year level. The increased volume of help wanted ads placed in BERLINER MORGENPOST and the positive development of advertising supplements were sufficient to offset declines in more competitive sectors. As Berlin s biggest newspaper, B.Z./B.Z. am SONNTAG reached a circulation of more than 205,000 units. HAMBURGER ABENDBLATT witnessed a significant increase in its advertising revenues, particular from help-wanted ads. Magazines Germany Net paid circulation IVW, average per issue in Q1/2006 TV DIGITAL 1,880,948 HÖRZU 1,597,306 FUNK UHR 781,732 BILDWOCHE 267,380 TV NEU 220,612 BILD der FRAU 1,146,296 FRAU von HEUTE 445,010 JOLIE 356,716 COMPUTER BILD 771,350 COMPUTER BILD SPIELE 490,438 AUDIO VIDEO FOTO BILD 429,937 AUTO BILD 652,072 AUTOMOBIL TESTS 130,631 AUTO BILD ALLES ALLRAD 76,116 AUTO BILD MOTORSPORT 72,913 AUTO BILD SPORTSCARS 55,438 EURO mit FINANZEN 1) 173,374 EURO am SONNTAG 110,423 MAXIM 156,122 POPCORN 333,891 YAM! 253,185 MÄDCHEN 181,241 STARFLASH 152,417 MUSIKEXPRESS 60,757 ROLLING STONE 58,382 METAL HAMMER 50,738 Magazines The biweekly TV programming guide TV DIGITAL saw its paid circulation rise to nearly 1.9 million copies per issue. Thus, TV DIGITAL has become established as the biggest programming guide for digital television and the second-biggest publication in the segment of higher-priced biweekly programming guides.

4 INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG JOLIE, the monthly magazine for young women, had an average circulation of about 357,000 copies per issue in the first quarter of 2006. This 4.7 % increase over the year-ago figure follows the longterm growth trend of this title, which has not been slowed by repeated price increases. Overall, JOLIE managed to strengthen its position as the No. 2 magazine in its segment. In the group of weekly magazines, BILD DER FRAU, Germany s highestcirculation magazine for women, benefited from the positive trend of advertising business in this segment. AUTOBILD and its affiliated titles got off to a very good start in 2006, especially with regard to advertising revenues. Benefiting from a new format, AUTOMOBIL TESTS saw its paid circulation rise by around 19 % over the year-ago quarter, to reach approximately 131,000 units. In the segment of computer and gaming magazines, the circulation of which is highly cyclical, COMPUTER BILD saw its advertising revenues increase over the prior-year figure. And despite the growing competition, AUDIO VIDEO FOTO BILD asserted its market leadership position in the segment of entertainment electronics magazines, with an average circulation of around 430,000 units. The market for youth magazines continued to experience strong growth, with paid circulation figures growing at double-digit rates. YAM!, POPCORN and STARFLASH saw their circulation figures increase 16 %, 35 % and 47 %, respectively, over the previous year. International The Polish daily FAKT successfully fended off an attack by a competing newspaper, which folded in February after only four months on the market. FAKT s average paid circulation reached the record level of approximately 548,000 units in the first quarter of 2006, indicative of a 7 % increase over the prior-year quarter. With 3.2 million readers, FAKT reaches more people in Poland every day than the next two competing titles combined. Axel Springer continued the systematic international expansion of its AUTO BILD brand in the first quarter. The 28th edition of Europe s biggest auto magazine AUTO BILD was launched in Serbia/Montenegro in January, the 29th edition in Denmark in March. Axel Springer also pushed forward with the internationalization of its COMPUTER BILD family of titles. The second international licensed edition of AUDIO VIDEO FOTO BILD was launched in Italy in February. And in March 2006, the Russian subsidiary Axel Springer Russia launched the eighth edition of Europe s biggest computer magazine, COMPUTER BILD. This was the first time that an Axel Springer brand was launched in Russia. COMPUTER BILD is also the first computer magazine in the portfolio of the Russian subsidiary. Electronic Media After the acquisition of ProSiebensat.1 Media AG was abandoned, Axel Springer still indirectly holds a 12 % interest in this company. Axel Springer also holds an equity interest in Hamburg 1 (27 %). The TV production company SCHWARTZKOPFF TV continued production of two successful ZDF programs, Willkommen bei Carmen Nebel and Goldene Kamera. The revenues of Axel Springer s radio subsidiaries were roughly the same as in the prior-year quarter. The portal BILD.T-ONLINE.DE further increased its circulation with its website relaunch at the end of February. The number of site visits in the first quarter was 24 % higher than the corresponding prior-year figure. AUTOBILD.DE, Germany s leading automobile portal with editorial content, saw its visits rise by more than 50 % over the prior-year quarter. IMMONET.DE extended its market position as the No. 2 in the market of online real estate portals. And the number of help wanted ads posted with STEPSTONE was more than 14% higher than the corresponding year-ago figure. CORA Verlag expanded its new business of TV-accompanying products, publishing 19 fiction magazines, paperback books and audio books in the first quarter. Printing and Logistics The newspaper printing plants continued on the moderate growth trend that began last year. The revenue increase over the prior-year period derived mainly from job printing activities.the modernization of the offset printing plant in Ahrensburg was largely completed. Operating Results - Group Market Environment: Print Media Distribution Declines, Advertising Market Expands The restrained level of consumer spending continued to weigh on the print media distribution market in the first quarter of 2006. The total paid circulation of newspapers and magazines was 2.0 % lower than the prior-year figure. Circulation revenues were stabilized only by way of numerous price increases. Whereas the overall advertising market expanded at an average rate of 4.2 %, the gross advertising revenues of print media (excluding classifieds and advertising supplements) rose 7.3 % to 2.3 billion in the first quarter of 2006, continuing the growth trend that had already begun in the previous year. In fact, the growth rate has accelerated since the first quarter of

INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG 5 2005 (Q1/2005/2004: +3.1 %). The pressure on advertising rates did not relent, with the result that net advertising revenues continued to lag behind gross advertising revenues. In the classifieds business, a key source of revenue for subscription newspapers, the volume of classified ads in the first two months of the year was 3.8 % lower than the corresponding year-ago figure. revenues represent 14.9 % of Axel Springer s total revenues (Q1/2005: 16.1 %, adjusted: 15.0 %). Total Expenses Lower Than Prior-Year Figure The expenses contained in EBITA amounted to 497.5 million, as compared with 534.7 million in the prior-year quarter. This decrease of 37.2 million (- 7.0 %) was mainly due to the spin-off of rotogravure printing activities to the joint venture PRINOVIS. Purchased goods and services amounted to 181.7 million, 6.4 million (+ 3.7 %) higher than the prior-year figure, because the cost of rotogravure printing, which had formerly been distributed over all cost categories, are now shown completely under Purchased goods and services. Personnel expenses came to 150.3 million, 23.8 million (- 13.7 %) lower than the year-ago figure. The Other operating expenses were 150.3 million, 15.2 million (- 9.2 %) lower than the year-ago figure. Depreciation, amortization and impairment losses (not including impairment losses in goodwill ) came to 15.1 million, 4.4 million (- 22.6 %) lower than the prior-year figure. Axel Springer: Circulation Revenues Stable,Advertising Revenues Pick Up Amid the continued difficult conditions of the magazine publishing sector, which were alleviated somewhat by the positive impetus from the advertising market, Axel Springer generated higher revenues in its core business. Circulation and advertising revenues together were 10.8 million (+ 2.1 %) higher than the corresponding prior-year figure. The total revenues for the first quarter of 2006 came to 566.8 million, less than the prior-year figure of 578.7 million. Circulation revenues held steady at 287.0 million, accounting for 50.6 % of total revenues. The revenue decreases in Spain and Hungary were largely offset by the positive revenue performance of TV DIGITAL, HÖRZU, FAKT and COMPUTER BILD. Advertising revenues rose 11.8 million (+ 5.1 %) to 241.7 million, representing 42.6 % of the total revenues. The main contributors to the revenue increase were the titles HAMBURGER ABENDBLATT, TV DIGITAL, BILD der FRAU, SPORT BILD and BILD.T-ONLINE.DE. The Other revenues declined by 22.7 million (37.3 %) to 38.1 million, due mainly to the discontinuation of rotogravure printing revenues and the sale of AS Interactive. Foreign Revenues Foreign revenues amounted to 84.6 million, which is 8.5 million less than the corresponding prior-year figure. Adjusted for the spinoff of rotogravure printing activities and a changed accounting method of revenues in Hungary, the foreign revenues were 0.7 million (+ 0.8 %) higher than the year-ago figure. Foreign Higher EBITA and Consolidated Net Income Axel Springer s EBITA for the first quarter of 2006 came to 91.2 million, indicative of a 10.5 million (+ 13.0 %) increase over the year-ago figure. The earnings increase can be attributed to higher revenues in the advertising business, the continued practice of strict cost management and the stepby-step progress towards profitability of the new titles. The EBITA margin was 16.1 % (Q1/2005: 13.9 %). The consolidated net income was 67.2 million, 19.6 million (41.2 %) higher than the year-ago figure. Apart from the improved operating result, the increase in the net income figure was also helped by the higher net financial income, which contained a non-recurring gain of 22.4 million before tax on an interest rate hedging instrument that was employed in connection with the financing of the planned acquisition of ProSiebenSat.1 Media AG. The earnings per share came to 2.16, as compared with 1.54 for the year-ago period.

6 INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG Operating results Segments Newspapers Market environment: Continued Decline in Circulation, Gains in Advertising The 377 daily and Sunday newspapers tracked by the market research institution IVW generated total sales of 24.9 million units, representing a 1.9 % decrease from the prior-year quarter. Singleunit sales suffered a greater loss than subscription sales. Business expenditures on newspaper ads (excluding classifieds and advertising supplements) amounted to 1.23 billion in the first quarter (up 6.4 % from the prior-year quarter). The advertising expenditures of discount grocery stores, which have been a major factor contributing to growth in the newspaper market, continued to increase in the first quarter of 2006, albeit at a slower rate. Once again, the technical retailers substantially raised their newspaper advertising exposures. In the regional newspaper market, however, this development was overshadowed by the unrelentingly negative performance of the classifieds market. With the exception of help wanted ads, all classified categories were down. The revenue performance of newspapers has been especially hard hit by the decreased volume of classified ads relating to real estate, automobiles and travel. Key Figures Newspapers Q1/2006 in millions Q1/2006 Q1/2005 Change External Revenues 348.0 343.8 1.2 % in % of consolidated revenues 61.4 % 59.4 % Circulation revenues 163.7 164.1-0.2 % Advertising revenues 176.8 169.2 4.5 % Other revenues 7.5 10.5-28.6 % EBITA 83.5 77.9 7.2 % EBITA margin 24.0 % 22.7 % Axel Springer: Circulation Revenues Steady, Newspaper Advertising Revenues Higher In this environment, Axel Springer generated newspaper revenues of 348.0 million in the first quarter, representing a 4.2 million (1.2 %) increase over the year-ago figure. Newspapers are the biggest source of revenue for Axel Springer, accounting for 61.4 % of total revenues. The circulation revenues for the first quarter were 163.7 million, roughly unchanged from the year-ago figure of 164.1 million. However, the newspaper advertising revenues of 176.8 million were 7.6 million (4.5 %) higher than the prior-year figure. The biggest contributors to this positive performance were HAMBURGER ABENDBLATT, BILD am SONNTAG, FAKT, DIE WELT and BILD.T-ONLINE.DE. The other revenues were 7.5 million, clearly lower than the prior-year figure of 10.5 million. At 83.5 million, the EBITA was 7.2 % higher than the year-ago figure of 77.9 million. This increase was greater than the revenue gains a clear sign of successful cost management. The EBITA margin was 24.0 % (Q1/2005: 22.7 %). Magazines Market Environment: Paid Circulation Increases, Advertising Revenues Surpass Year-Ago Figure The average paid circulation per issue of the general interest magazines tracked by IVW totaled 123.76 million units, 0.3 % higher than the prior-year figure. This rather slight increase can be explained for the most part by the high-circulation magazine titles that have recently joined the IVW survey. The number of magazines tracked by IVW rose by 25 to 864 in the first quarter. During that same period, the gross advertising revenues of all general-interest magazines rose 9.0 % to 950 million. Key Figures Magazines Q1/2006 in millions Q1/2006 Q1/2005 Change External Revenues 191.1 188.4 1.4 % in % of consolidated revenues 33.7 % 32.6 % Circulation revenues 123.3 123.9-0.5 % Advertising revenues 64.9 60.7 6.9 % Other revenues 2.9 3.8-23.7 % EBITA 17.2 14.3 20.3 % EBITA margin 9.0 % 7.6 %

INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG 7 Axel Springer: Circulation Revenues Steady, Advertising Revenues Higher Axel Springer s magazine revenues for the first quarter amounted to 191.1 million, 2.7 million (1.4 %) higher than the year-ago figure. Thus, the Magazines segment contributed 33.7 % of the Group s total revenues. At 123.3 million, the circulation revenues were basically unchanged from the prior-year period ( 123.9 million), as the minor decreases in established titles were made up for by gains in the new titles, especially TV DIGITAL. Thanks in particular to the positive performance of TV DIGITAL, BILD der FRAU, SPORT BILD and the auto magazines, the advertising revenues rose 4.2 million to 64.9 million. EBITA rose 2.9 million (+ 20.3 %) to 17.2 million, due to higher earnings both on established key titles and on successful new titles such as TV DIGITAL. The EBITA margin was 9.0 % (Q1/2005: 7.6 %). Printing The newspaper printing plants again generated higher revenues, due to higher job printing revenues. As a result of the rotogravure printing activities having been transferred to the joint venture Prinovis, the external revenues of the printing plants declined 16.9 million in the first three months of 2006 to reach 12.0 million. The internal revenues were 56.3 million (Q1/2005: 78.8 million) and the total segment revenues were 68.3 million (Q1/2005: 107.7 million). The company s own printing plants are managed as cost centers. The segment EBITA came to -1.0 million (Q1/2005: 0.0 million). Since July 2005, this figure additionally contains the investment income/expenses from the joint venture PRINOVIS Ltd. & Co. KG. The cash flow from investing activities came to - 5.2 million (Q1/2005: - 16.8 million). The capital expenditures of 9.7 million (Q1/2005: 19.6 million) were devoted to intangible assets, in the amount of 2.1 million, property, plant and equipment in the amount of 6.8 million, and financial assets in the amount of 0.8 million. The cash flow from financing activities amounted to - 107.9 million (Q1/2005: - 6.9 million) because the company repaid a shortterm loan of 100 million in February. The net cash flow from operating, investing and financing activities reduced the company s holdings of cash and cash equivalents by 67.7 million. Net Liquidity Axel Springer increased its net liquidity from 327.1 million at year-end 2005 to 364.4 million at March 31, 2006. At March 31, 2006, the total holdings of cash and cash equivalents (including marketable securities) amounted to 517.1 million (December 31, 2005: 585.1 million). At the period closing date, the financial liabilities had fallen to 152.7 million as a result of debt repayments totaling 258.0 million. Services/Holding The external revenues were 15.7 million, indicative of a 1.9 million (- 10.9 %) decrease from the year-ago figure, due mainly to the sale of the value-added telephone service provider AS Interactive and the contribution of Punkt Direktvertriebs GmbH to the PIN Group AG, Leudelingen/Luxemburg. The segment EBITA improved to - 8.5 million (Q1/2005: - 11.5 million). Financial Situation Cash Flow and Capital Expenditures Because of the improved net income figure, the cash flow from operating activities rose from 33.3 million in the prior-year period to 45.5 million in the first quarter of 2006.

8 INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG Risks The company s risk assessment has not changed since the annual report at December 31, 2005. Employees Annual Shareholders Meeting 2006 The regular shareholders meeting of Axel Springer AG was held in Berlin on April 27, 2006. The shareholders present or represented at the meeting approved the proposed resolutions on the meeting agenda with majorities of 99 % in every case. The adopted resolutions related to the authorization to purchase and use the company s own shares and the distribution of a 1.70 dividend per qualifying share. A total of 28.9 million shares were present or represented at the meeting, accounting for 85.1 % of the company s capital stock. Axel Springer had an average of 9,591 employees (excluding apprentice-trainees and journalism students/interns) in the first three months of 2006. Share Positive Share Price Development After an increase of 25.6 % in 2005, the price of the Axel Springer share held firm in the first quarter of 2006. The share closed at 112.00 on March 31, 2006, indicative of a 3.7 % increase over the start of the year ( 108.00). During the first quarter, the Prime Media index increased by 14.2 %, the Dow Jones EuroStoxx Media by 3.8 %. On May 19, 2005, Dr. Oliver Krauß brought an action for annulment of the following resolutions adopted at the annual shareholders meeting of April 20, 2005: Agenda Item 2 (Appropriation of net profit), Agenda Item 3 (Ratification of Management Board actions), Agenda Item 4 (Ratification of Supervisory Board actions) and Agenda Item 7 (Authorization to purchase and use the company s own shares pursuant to Section 71 (1) (8) of the German Stock Corporations Act ( AktG ), including the Management Participation Program). The Berlin Regional Court dismissed the action on February 9, 2006. Dr. Oliver Krauß has filed an appeal against this decision. In this matter as well, Axel Springer AG will move for dismissal of the appeal.

INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG 9 Outlook In their Economic Report for early 2006, the leading economic research institutions predict a further strengthening of the economic upswing and a 1.8 % increase in the gross domestic product of Germany for the year 2006. Consumer spending, which is critical for the business success of Axel Springer AG, is expected to increase at an inflation-adjusted rate of 0.4 %, far behind the dynamic growth rates for exports (+ 8.2 %) and business investment (+ 3.1 %). It is expected that consumers will make advance purchases in the second half of 2006 to mitigate the effects of the value-added tax rate increase planned for 2007. Therefore, the savings rate will fall slightly to 10.5 % in 2006. Because the economic research institutions do not yet see a reason to fear significant inflationary pressures from the run-up in energy prices, they are predicting that the average inflation rate for the full year 2006 will actually fall to 1.6 %. For the full year 2006, the Management Board intends to step up its capital spending on the core business of German-language publications, as well as internationalization and digitization. Depending on the scope of these capital expenditures, the EBITA for 2006 could be lower than the record EBITA for 2005, despite the continued practice of strict cost management. Despite the growth of gross advertising revenues in the first quarter, it cannot yet be assumed that the advertising market will experience a sustained recovery. The future development of the advertising market will depend on the general state of the economy and the degree to which the consumer fatigue that is currently in evidence can be overcome, leading to a friendlier consumption climate. Market observers anticipate an increase of roughly 1.5 % to 2.0 % in net advertising revenues for the full year 2006, depending on the trend of consumer spending. Positive impetus for advertising revenues in 2006 can be expected to come mainly from the retail sales sector. Increased advertising revenues are expected in connection with the World Soccer Cup, especially in sports-related media. Advance purchases in anticipation of the value-added tax increase are expected to stimulate demand for durable consumer goods in particular; and this trend can be expected to boost advertising expenditures as well. For 2006, the Management Board anticipates a moderate increase in the revenues from its core business, which is to say, the combined total of circulation and advertising revenues. Because the discontinuation of rotogravure printing revenues will be reflected in the full-year results for the first time, the total revenues for 2006 can be expected to be slightly lower than the corresponding prior-year figure.

10 INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG Interim Financial Statements Consolidated Balance Sheet Consolidated Balance Sheet EUR thousands ASSETS 03/31/2006 12/31/2005 Non-Current Assets 1,730,212 1,616,482 Fixed assets 1,698,608 1,584,507 Intangible assets 130,144 130,894 Property, plant and equipment 771,342 781,522 Investment property 37,922 37,987 Non-current financial assets 759,200 634,104 Investments in associated companies accounted for by the equity method 276,546 238,532 Other non-current financial assets 482,654 395,572 Receivables and other assets 2,214 2,286 Deferred taxes 29,390 29,689 Current Assets 918,820 995,517 Inventories 42,893 49,031 Trade receivables 184,077 179,460 Receivables due from related parties 62,572 66,365 Current income tax receivables 23,815 25,185 Other assets 88,405 90,348 Cash and cash equivalents 517,058 585,128 Total Assets 2,649,032 2,611,999 Consolidated Balance Sheet EUR thousands EQUITY AND LIABILITIES 03/31/2006 12/31/2005 Equity 1,362,358 1,184,989 Shareholders of Axel Springer AG 1,353,510 1,174,410 Minority interests 8,848 10,579 Non-Current Provisions and Liabilities 627,317 634,484 Pension provisions 282,451 280,391 Other provisions 31,780 32,371 Financial liabilities 135,054 140,405 Other non-current liabilities 22,693 23,422 Deferred taxes 155,339 157,895 Current Provisions and Liabilities 659,357 792,526 Pension provisions 46,752 46,752 Other provisions 145,795 162,773 Financial liabilities 17,610 117,556 Trade payables 148,976 173,197 Liabilities due to related parties 36,689 45,588 Current income tax liabilities 103,215 95,637 Other liabilities and accruals 160,320 151,023 Total Equity and Liabilities 2,649,032 2,611,999

INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG 11 Consolidated Income Statement Consolidated Income Statement EUR thousands Q1/2006 Q1/2005 Revenues 566,765 578,737 Other operating income 13,971 25,110 Change in inventories and internal costs capitalized 1,084 2,495 Purchased goods and services - 181,707-175,258 Personnel expenses - 150,252-174,090 Depreciation, amortization and impairments - 15,061-19,469 Other operating expenses - 150,437-165,606 Income from investments 6,815 6,472 Equity income from associated companies 3,903 5,435 Other investment income 2,912 1,037 Net financial income/expenses 19,316-3,576 Interest income 3,299 2,430 Interest and similar expenses - 8,910-9,005 Other net financial income/expenses 24,927 2,999 Income taxes - 43,268-28,953 Income from Continuing Operations 67,226 45,862 Income from Discontinued Operations 0 1,722 Consolidated Net Income 67,226 47,584 Consolidated net income attributable to shareholders of Axel Springer AG 66,301 47,224 Consolidated net income attributable to minority interests 925 360 Basic Earnings per Share from Continuing Operations (in EUR) 2.16 1.48 Diluted Earnings per Share from Continuing Operations (in EUR) 2.15 1.47 Basic Earnings per Share (in EUR) 2.16 1.54 Diluted Earnings per Share (in EUR) 2.15 1.53

12 INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG Consolidated Cash Flow Statement Consolidated Cash Flow Statement EUR thousands Q1/2006 Q1/2005 Consolidated net income 67,226 47,584 Depreciation, amortization, impairments on and increases in value of fixed assets 15,061 19,469 Equity income from associated companies - 3,903-5,435 Dividends received from associated companies accounted for under the equity method 6,042 7,005 Gains (-)/losses (+) on disposals of fixed assets 1,683-2,095 Income (-)/losses (+) from discontinued operations 0-1,722 Other non-cash income and expenses - 8,306 674 Changes in deferred taxes 6,203 555 Changes in other balance sheet items - 38,489-32,749 Cash Flow from Operating Activities 45,517 33,286 Proceeds from disposals of fixed assets 4,465 2,849 Net inflow/outflow from initial consolidation/deconsolidation - 52 0 Purchases of fixed assets - 9,656-19,604 Cash Flow from Investing Activities - 5,243-16,755 Dividends paid to minority interests - 2,626-333 Repayments of finance lease obligations - 37-1,126 Additions to other financial liabilities 539 2,432 Repayments of other financial liabilities - 105,800-7,899 Cash Flow from Financing Activities - 107,924-6,926 Cash Flow-Related Changes in Cash and Cash Equivalents - 67,650 9,605 Effects of exchange rate changes on cash and cash equivalents - 420-37 Cash and cash equivalents at beginning of period 585,128 454,546 Cash and Cash Equivalents at End of Period 517,058 464,114

INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG 13 Statement of Changes in Equity Statement of Changes in Equity Q1/2006 EUR thousands Other Accumulated Equity Number of Shares Outstanding Subscribed Capital Additional Paid-in Capital Consolidated Retained Earnings Treasury Shares Currency Translation Adjustment Other Changes in Fair Values of Financial Instruments Shareholders of Axel Springer AG Minority Interests Consolidated Equity Balance 01/01/2006 30,662,300 102,000 26,574 1,041,891-181,203 1,611 154,791 28,746 1,174,410 10,579 1,184,989 Consolidated net income 66,301 66,301 925 67,226 Currency translation differences - 778-778 - 65-843 Changes in fair value of financial instruments 103,967 103,967 51 104,018 Consolidated Comprehensive Income 66,301-778 103,967 169,490 911 170,401 Profit distributions - 2,626-2,626 Management- Participation Program 749 749 749 Other changes not recognized in income of companies accounted for by the equity method 8,861 8,861 8,861 Other changes - 16-16 Balance 03/31/2006 30,662,300 102,000 27,323 1,108,192-181,203 833 258,758 37,607 1,353,510 8,848 1,362,358 Statement of Changes in Equity Q1/2005 EUR thousands Other Accumulated Equity Number of Shares Uutstanding Subscribed Capital Additional Paid-In Capital Consolidated Retained Earnings Treasury Shares Currency Translation Adjustment Other Changes in Fair Values of Financial Instruments Shareholders of Axel Springer AG Minority Interests Consolidated Equity Balance 01/01/2005 30,662,300 102,000 23,467 860,203-181,203-200 30,684 27,552 862,503 10,896 873,399 Consolidated net income 47,224 47,224 360 47,584 Currency translation differences -207-207 - 24-231 Changes in fair value of financial instruments 28,556 28,556 210 28,766 Consolidated Comprehensive Income 47,224-207 28,556 75,573 546 76,119 Profit distributions - 333-333 Management Participation Program 674 674 674 Other changes 144 144 Balance 03/31/2005 30,662,300 102,000 24,141 907,427-181,203-07 59,240 27,552 938,750 11,253 950,003

14 INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG Explanatory notes Segment Report Segment Reporting - Primary Reporting Format EUR thousands Newspapers Magazines Printing Services/Holding Consolidated total Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 External Revenues 347,979 343,801 191,053 188,437 12,024 28,859 15,709 17,640 566,765 578,737 Internal revenues 3,772 4,338 1,656 1,608 56,316 78,804 35,842 35,203 Segment revenues 351,751 348,139 192,709 190,045 68,340 107,663 51,551 52,843 EBITDA 84,804 79,333 19,157 15,986 5,673 10,009-3,395-5,180 106,239 100,148 Income from investments included therein 3,648 3,290 1,805 2,197-1,046 0 2,408 985 6,815 6,472 Thereof accounted for under the equity method 3,560 3,290 1,389 2,145-1,046 0 0 0 3,903 5,435 Depreciation, amortization and impairments - 1,324-1,417-1,922-1,677-6,719-10,009-5,096-6,366-15,061-19,469 EBITA 83,480 77,916 17,235 14,309-1,046 0-8,491-11,546 91,178 80,679 Impairment loss on goodwill 0 0 0 0 0 0 0 0 0 0 EBIT 83,480 77,916 17,235 14,309-1,046 0-8,491-11,546 91,178 80,679 Non-recurring items 0 0 0 0 0 0 0-2,288 0-2,288 Earnings before Interest, Taxes and Discontinued Operations 83,480 77,916 17,235 14,309-1,046 0-8,491-13,834 91,178 78,391 Net financial income/expenses 19,316-3,576 Income taxes - 43,268-28,953 Income from Continuing Operations 67,226 45,862 Segment Reporting - Secondary Reporting Format EUR thousands Domestic Foreign Consolidated total Q1 Q1 Q1 Q1 Q1 Q1 2006 2005 2006 2005 2006 2005 Consolidated revenues 482,185 485,669 84,580 93,068 566,765 578,737

INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG 15 General Information The present interim financial statements at March 31, 2006 have been drawn up in accordance with IAS 34 Interim Reporting. In some cases, the format of the interim financial statements has been abridged from the format used in the consolidated financial statements for 2005. The accounting and valuation methods and the estimation methods applied in the interim financial statements at March 31, 2006 are the same as those applied in the consolidated financial statements at December 31, 2005. A detailed description of these methods has been published in the notes to the consolidated financial statements in the 2005 Annual Report. In the table below, the consolidation group of the Axel Springer Group at March 31, 2006, is presented and contrasted with the consolidation group at December 31, 2005: 03/31/2006 12/31/2005 Fully Consolidated Companies Domestic 27 28 Foreign 15 15 Fully Consolidated Special Purpose Entities Domestic 4 4 Foreign 1 1 Companies Consolidated under the Equity Method Domestic 10 7 Foreign 2 1 Consolidation Group Discontinued Operations All significant domestic and foreign subsidiaries in which Axel Springer AG exercises control over financial and operational policies, directly or indirectly, are included in the interim financial statements of the Axel Springer Group. The consolidation group has undergone the following changes since the end of 2005: in the first quarter of 2006, Axel Springer AG contributed its equity holding in PIN intelligente dienstleistungen AG, Berlin, which had formerly been accounted for by the equity method, and the company Punkt Direktvertriebs GmbH, Hamburg, which had formerly been fully consolidated, to PIN Group AG, Leudelingen/Luxembourg. Besides PIN Group AG, the equity holdings in Kieler Zeitung, Verlags- und Druckerei KG-GmbH & Co., Kiel, Kieler Zeitung Verwaltungs GmbH & Co. Beteiligungs KG, Kiel, Kieler Zeitung GmbH & Co. Offsetdruck KG, Kiel and Lübecker Nachrichten GmbH, Lübeck, were included in the consolidation group for the first time and accounted for by the equity method. In the prior-year period, income and expenses were recognized for the discontinued operations of Ullstein Heine List GmbH & Co. KG and Weltkunst Verlag GmbH in connection with the divestment of the Books segment. Treasury Shares At March 31, 2006, the company held 3,337,700 of its own shares, the same number held at December 31, 2005.

16 INTERIM REPORT JANUARY MARCH 2006 / AXEL SPRINGER AG Report of the Audit Committee of the Supervisory Board The interim report for the period January March 2006 and the report of the independent auditor on the critical review of the interim financial statements, which served as the basis for the auditor s opinion, were duly submitted to the Audit Committee of the Supervisory Board, which discussed these documents with the Management Board and with the independent auditor. The Audit Committee approved the interim financial statements. Berlin, May 2006 Dr. Giuseppe Vita Chairman of the Audit Committee Financial Calendar 2006 Annual Results Press Conference March 8, 2006 Annual Shareholders Meeting April 27, 2006 Interim Report January March 2006 May 9, 2006 Interim Report January June 2006 July 31, 2006 Interim Report January September 2006 November 8, 2006 Share information in Q1/2006 Q1/2005 Change Earnings per share 2.16 1.54 40.3 % Closing price 112.00 92.00 21.7 % Highest price 112.00 93.00 20.4 % Lowest price 104.00 86.00 20.9 % Average price 107.43 89.82 19.6 % Disclaimer This interim report contains forward-looking statements, which entail risks and uncertainties. The future development and results of Axel Springer AG and the Axel Springer Group may differ considerably from the assumptions applied in this interim report. This interim report does not constitute an offer to sell, nor an invitation to submit an offer to buy, securities of Axel Springer AG. The company bears no obligation to update the statements contained in this interim report. Listing Information Share type Registered shares of restricted transferability Stock exchange Frankfurt (official exchange) Stock exchange segment General Standard Security Identification No. 550 135 ISIN DE0005501357 Reuters SPRGn.F Bloomberg SPR GR Contact Axel Springer AG Investor Relations ir@axelspringer.de Fax +49-0 30 25 91-7 74 22 Claudia Thomé claudia.thome@axelspringer.de Tel +49-0 30 25 91-7 74 21 Address Axel Springer AG Axel-Springer-Str. 65 10888 Berlin/Germany Tel. +49-0 30 25 91-0 Information Additional information about Axel Springer AG is available on the Internet at: www.axelspringer.com This interim report is also available in German. Diana Grigoriev diana.grigoriev@axelspringer.de Tel +49-0 30 25 91-7 74 20