1. Advertising in the convergence era - from a publisher‘s point of view Dr. Andreas Wiele, Axel Springer Verlag AG 33 rd FIPP World Magazine Congress, April 25 th, 2001, Rio de Janeiro

2. Revenue Structure è Total Revenue2.4 bn US$ in bn US$in % u thereof:newspapers1.356 magazines0.626 international0.415 electronic media0.1 3 Axel Springer is Germany‘s biggest publishing company with a growing international presence

3. Newspapers l 5 national newspapers l 7.8 million copies sold per day Axel Springer is Europe‘s biggest newspaper publisher l 4 regional newspapers l 0.8 million copies sold per day l 8 regional newspapers (partly owned) l several free papers

4. Axel Springer is the third largest German magazine publisher Magazines Germany l fully owned n 26 titles l Joint Ventures n 19 titles International* l owned (majority) n 77 titles in 8 countries (Poland, Hungary, Spain, France, Switzerland, Czech Republic, Austria, Romania) l Joint Ventures n 2 titles in 2 two countries (France, Portugal) l Licences n 7 titles in 7 two countries (Italy, UK, Holland, Czech Republic, Turkey, Greece, Croatia) *incl. International newspaper activities

5. The German magazines: Strong presence in nearly all markets TV-Listings Car Women Computer Business Sports Youth

6. International: Growing presence of international concepts and brands

7. Advertising in the convergence era (Germany, 2000) The reality today: 41 dollar in Print for each dollar Online million US$ Source: Prognos AG, Basle, „Werbemarkt 2010“

8. However, the internet is a fascinating medium as a: 1.Marketplace of goods and services: Brings people together who want to buy and sell 2.Marketplace of people: Brings people together who want to communicate or play 3.Marketplace of information: Brings people and customized/personalized information together

9. In these areas the online content and the print content will converge 1.Marketplace of goods and services: The real estate section of the Berliner Morgenpost 2.Marketplace of people: Our youth magazine YAM! - the reader as reporter 3.Marketplace of information: The personalized AS Auto Portal 3 examples from our company

10. Berliner Morgenpost (www.berliner-morgenpost.de) The real estate section l Real estate section of the online edition is combined with corresponding section of the print edition n ads for the print edition appear automatically in the online edition for one week n additional service justified price increases of significantly over 10% n market share of Berliner Morgenpost was not affected at all by price increases n ads in Print are by far most the important tool to advertise real estate but: search/information functions are used more frequently n classified ads generate significant traffic rates for online edition

11. YAM! (www.yam.de) The reader as a reporter l Readers can act as a reporter for the magazine n creation of community sense that is built up further through the online edition n readers receive a special ID as a YAM!-Reporter n names of new reporters are published in each issue n reporters receive a fee for each published article n special section in the print edition is dedicated to the YAM!-Reporter stories n online edition also permits interactivity with the YAM!- Reporter and among the reporters (chatting)

12. AS Auto Portal (www.autobild.de) Personalized information l AS Auto Portal combines editorial competence of Germany‘s leading car magazine AUTO BILD and its derivatives with e-commerce n independent platform offering comprehensive content of the motor world and broad range e-commerce possibilities n new and used cars database: up-to-date information from the distribution networks of all major manufacturers n users can search for car offers according to their personal information requirements n additional information on cars (e.g. independent tests) is supplied from all editions of the AUTO BILD family n additional e-commerce fields (e.g. car rentals, insurances, travelling) n syndication of content and e-commerce models

13. The convergence of the future: The screen will replace paper as display medium l These new media types will have the look and feel of magazines l and they will offer the full range of interactivity and functionalities of the internet