Key figures
in CHF mill. 2012 2011 Change
Income Statement
Operating revenues 1 052.4 1 117.2 –5.8%
Operating income before depreciation
and amortisation (EBITDA) 203.4 237.7 –14.4%
Margin 19.3% 21.3% –9.2%
Operating income (EBIT) 143.0 180.8 –20.9%
Margin 13.6% 16.2% –16.0%
Net income 152.0 178.8 –15.0%
Operating revenue by division (third parties)
Print Regional 484.3 531.8 –8.9% Print National 420.3 447.4 –6.0% Digital 147.8 138.0 7.1% Balance Sheet Current assets 324.9 410.2 –20.8% Non-current assets 1 756.0 1 330.8 32.0%
Balance sheet total 2 080.9 1 741.0 19.5%
Liabilities 892.6 785.2 13.7%
Equity 1 188.3 955.8 24.3%
Financial Key Data
Equity ratio 57.1 54.9 4.0%
Return on equity 12.8 18.7 –31.6%
Employee Key Data
Headcount as of balance sheet date1 3 471 3 330 4.2%
Operating revenues per employee2 in CHF 000 313.2 338.4 –7.5%
Key figures per share
Net income per share in CHF 14.54 16.82 –13.6%
Dividends per share in CHF 4.503 5.75 –21.7%
Dividend yield 4.4% 4.9% –11.2%
Price/earnings ratio4 x 7.1 6.9 2.0%
1 Number of full-time equivalents of continuing operations 2 Based on the average number of employees 3 Proposed appropriation of profit by the Board of Directors 4 Based on year-end price
Contents
Survey 1
Editorial by the Chairman of the Board of Directors 2
Board of Directors 4
Remarks from the CEO 6
Management Board 8
Organisation Chart 10
Annual Report 2012 11
Operational reporting and market conditions 13
Financial reporting 26
Multi-year comparison 33
Information for investors 34
Tamedia Group 36
Principal shareholders 44
Survey
2
Editorial by the Chairman of the Board of Directors Dynamic growth in challenging circumstances
Excerpt from the Annual Report 2012 Dr. Pietro Supino, Chairman of the Board of Directors Ladies and Gentlemen
The 2012 financial year was a challenging one for Tamedia. The economic climate was relatively positive despite the strength of the Swiss franc; however this was not ref lected in the financial results of advertising, an impor-tant market for the media sector. Furthermore, the expected acceleration of structural changes took effect.
The corporate response to this development is first of all improvements in efficiency, which extends to col-laboration with other independent media corporations. Secondly, we are developing new business areas, par-ticularly with regard to the 20 Minuten and digital media. We also expect long-term solutions to come from the payment models for the expanded digital content of our subscription newspapers. In this regard we are reliant on our digital payment models not being exposed to competition from free services offered by SRG, which is largely financed by television licence fees.
The 2012 financial year was marked by rapid growth at Tamedia. We have invested in strengthening the field of investigative journalism with the expansion of the research desk of Le Matin Dimanche and
Son-ntagsZeitungand also through our investigative journalism summer course initiative at Columbia University
in New York. The online and print editorial teams of 20 Minutenand the Tages-Anzeigerare successfully under-going a challenging process of convergence. The SonntagsZeitung, thanks to cooperation with the Bundand the
Basler Zeitung, is now in the process of becoming the most circulated Sunday paper in Switzerland. We have
launched two promising magazines: the national lifestyle magazine Encoreand the multilingual supplement Auto. Our real estate platform Homegatestrengthened its leading market position with its investment in
Immostreet. In collaboration with Ringier, we have taken over the jobs platform jobs.ch. Combined with our job
portals alpha.ch, jobsuchmaschine.ch, jobup.chand jobwinner.chthis provides an excellent starting point in an important business area for us: the job advert market. In collaboration with our partner at 20 minuti, publisher Giacomo Salvioni, we were able to invest in the leading online portal tio.chin Ticino. Following the success-ful creation of the Luxemburg commuter newspaper L’essentielin partnership with Editpress, at year-end we were able to lay the foundation for substantial expansion abroad, thanks to the acquisition of the Danish commuter paper MetroXpress. We are also making progress in the printing business: since September, the Bieler
Tagblatthas been produced in the Berne printing centre and from April the printing of the Basler Zeitungwill
We should be proud of achieving this dynamic growth under challenging conditions. With net income of CHF 152 million and a margin of 14%, 2012 was also a financially encouraging year. However, extraordinary effects once again had a positive inf luence on the income statement. The net income achieved by the ordi-nary business was some CHF 120 million, while it had been around CHF 160 million in the previous year. Even though 2011 had been the best financial year in the company’s history, this is still a disappointing perform-ance. In addition to the strategic steps presented, cost measures were also introduced in order to compensate for a reduction in the margin. On a positive note, the balance sheet shows that after financing the acquisition of Edipresse Suisse, Tamedia was again largely debt free at the end of 2012. However, since then we have again had to borrow substantial funds for the acquisition of jobs.ch. Repayment of these borrowed funds is to be made in the next two to three years from the current business. Against this backdrop, the Board of Directors will propose to the General Meeting that a dividend of CHF 4.50 per share be distributed.
This encouraging company growth and positive net income have only been made possible thanks to the work of our Management Board and our employees. On behalf of the Board of Directors, I would like to extend my warm thanks to you all. Special thanks go to Martin Kall, who led the operational business from 2002 until the end of 2012. He was fundamental in optimising our business and setting the course for long-term contin-ued growth. In so doing, he has laid the foundation for encouraging company growth. He also contributed greatly to the individual steps along the way. Unfortunately, he has decided to step down after ten years of service. Martin Kall has left the company in excellent condition. He has left behind a well-prepared successor in Christoph Tonini, a solid and experienced management team, competent and committed employees, and a company that occupies a strong position in attractive markets. The Board of Directors will propose to the General Meeting that it should elect Martin Kall to the Board of Directors. We would be delighted to continue to work together with him in this new capacity.
It is with regret that we must report the passing of one of the Members of the Board of Directors in the sum-mer. Charles von Graffenried died a few days before his 87th birthday following a short illness. Throughout his life, he was an impressive individual with various spheres of inf luence. Indeed, he helped to shape the Swiss media landscape – as the creator and publisher of the Berner Zeitung, the founder and Chairman of Espace Media Groupe, the publisher of Bund, a partner in the merger of Espace Media and Tamedia and since then, a member of Tamedia’s Board of Directors. Already prior to that, he had an impact on Tamedia, advis-ing my family – formerly the sole and now the majority owner – and comadvis-ing up with the name Tamedia. We will always feel indebted to him.
On reaching the end of his term in office, Martin Bachem has decided to leave the Board of Directors. Aged 55 and an economist, he has served as Chairman of the Board of Directors of Ziegler Druck- und Verlags-AG since 1996 and is a member of the founding family. My colleagues on the Board of Directors and I regret that he has decided to leave the Board, which he has enriched with his conscientious and skilled work. He has decided to leave the Board of Directors in order to avoid a conf lict of interest as Ziegler Druck- und Verlags-AG, in which Tamedia holds a 20% share, is taken forward. Our thanks and best wishes go with him.
My cousin Andreas Schulthess has announced his resignation from the Board of Directors. He wishes to pur-sue a new career path, and so, after six years as a member of the Board, is unfortunately not standing for re-election to it. I would like to thank him, also on behalf of the Board of Directors, for his great commitment in a time of fundamental change in the company. We are delighted that he has decided to remain affiliated with the company as a family shareholder. The Board of Directors will propose to the General Meeting the election of my cousin Claudia Coninx-Kaczynski as his successor in the Board of Directors. Aged 39 and a lawyer, she studied at the University of Zurich and the London School of Economics and Political Sciences before carry-ing out research work at the University of Zurich, after which she led the business of a real estate company as a member of the Board of Directors. Today her responsibilities also include her role as member of the Board of Directors of P.A. Media AG, a subsidiary of Swisscontent AG.
Dr. Pietro Supino
Pietro Supino,Chairman of the Board of Directors, Chairman of the Journalism Committee, Chairman of the Nominat-ing and Compensation Committee, Chairman of the Business Development Committee Dr. Pietro Supino (CH/I/1965) has been Chairman and publisher since May 2007. He was elected to the Board of Directors of Tamedia in 1991. Between 1989 and 1998 Pietro Supino gained experience as a lawyer and in business consultancy before founding a private bank with partners in Zurich. Among other responsibilities, he is currently Chairman of the Board of Directors of Espace Media AG, Vice Chairman of Tamedia Publications romandes S.A., a member of the Board of Directors of Le Temps SA and of the Swiss news agency Schweizerische Depeschenagentur AG, as well as Vice Chairman of the Board of the Swiss Media Association. Pietro Supino completed his studies in law and economics with a doctorate from the University of St. Gallen. He has also been admitted to the Zurich bar and holds a Masters from the London School of Economics and Political Sciences. He attended the Columbia School of Journalism in New York, which prepared him well for his future as a publisher. He has been a member of the Board of Visitors since 2012.
Tibère Adler,Member of the Nominating and Compensation Committee Tibère Adler (CH/1963) has been a member of the Board of Directors since May 2011. He studied law at Geneva University and subsequently passed his bar examina-tions. He obtained an Executive MBA from the renowned International Institute for Management Development (IMD) in Lausanne. Having worked in an independent capacity as a lawyer and legal counsel to the Association of Publishers for the French-speaking Press, Tibère Adler joined Edipresse in 1993, where he undertook a number of different func-tions: Legal Advisor, Head of HR Management, Administrative Director, General Secretary, Director of Edipresse Online, Vice General Manager and General Manager of Edipresse Suisse. From 2005 to mid 2011 he was responsible for the entire Edipresse Group in the capacity of General Manager (CEO). Tibère Adler sits as an independent member on the boards of directors of various Swiss companies. He is Chairman of the Swiss Board Institute foundation and Honorary Presi-dent of Médias Suisses, the association of French-speaking private Swiss media, in Lausanne.
Martin Bachem,Chairman of the Audit Committee Dr. Martin Bachem (CH/1958) joined the Board of Directors in May 2010. He graduated from the University of Zurich with a doctorate in economics and undertook financial training pro-grammes in New York and Chicago. He began his professional career in 1985 as a capital market specialist with J. P. Mor-gan. Between 1990 and 1994 he ran the Risk Management Advisory Services department at Swiss Bank Corporation, before being appointed Chief Operating Officer of Investment Banking Switzerland in 1995. In this role he coordinated the merger of the investment banks of Swiss Bank Corporation and Union Bank of Switzerland. In 2003 he took over global responsibility for Group Human Resources at UBS AG in the capacity of Chief Operating Officer. Martin Bachem has been self-employed since 2007. As a representative of the founding family, he has also been a member of the Board of Directors of Ziegler Druck- und Verlags-AG since 1985 and Chairman since 1995.
Pierre Lamunière,Member of the Business Development Committee Pierre Lamunière (CH/1950) has been a member of the Board of Directors since May 2009. After completing his studies in the US (MBA Wharton School, University of Pennsylvania) Pierre Lamunière joined Edipresse Group in 1977. From 1987, he headed the company as General Man-ager, and in 1998 he was named Chairman of the Board of Directors and Chief Executive Officer. From 1997 to 2002 Pierre Lamunière served on the Board of Directors of Swiss Post. He is Chairman of Lamunière SA and its subsidiaries. Pierre Lamunière is also a member of the Management Board of the International Federation of the Periodical Press (FIPP) where he served as Chairman from 2007 to 2009. Since March 2008, he has been on the Board of Directors of Banque Cantonal Vaudoise (BCV).
Board of Directors
4 Excerpt from the Annual Report 2012
Konstantin Richter, Member of the Audit Committee, Member of the Journalism Committee Konstantin Richter (D/1971) has been a member of the Board of Directors since 2004. After completing his studies in English Literature and Philosophy in the UK (MA, Edinburgh) and in Journalism in the US (MS, Columbia University), Konstantin Richter worked as a journalist for English-language publications for several years. He was Assistant Editor at the Columbia
Jour-nalism Reviewin New York and the Cambodia Dailyin Phnom Penh, and worked as Staff Reporter for the Wall Street
Jour-nalin Brussels. Today he works as a freelance journalist and writer. He is the author of the novels “Bettermann” (2007) and “Kaf ka war jung und er brauchte das Geld” (2011) and writes for Die Zeitand Welt am Sonntag.
Iwan Rickenbacher,Member of the Journalism Committee, Member of the Business Development Committee Prof. Dr. Iwan Rickenbacher (CH/1943) has been a member of the Board of Directors since 1996. He began his professional career in 1975 as Director of the Teachers’ College of the Canton of Schwyz. From 1988 to 1992, he served as General Secretary of the Christian Democratic People’s Party of Switzerland (CVP) in Berne. In 1992, he established his own com-munications consulting firm. In 2000, he was appointed Honorary Professor at the University of Berne. He is a mem-ber of the Board of Directors of Eskamed AG, Basel, and Chairman of the Board of Trustees of the Lucerne-based Swiss School of Journalism (MAZ). After obtaining his teacher’s certificate, Iwan Rickenbacher studied educational sciences and graduated with a doctorate.
Andreas Schulthess, Member of the Audit Committee, Member of the Nominating and Compensation Committee Andreas Schulthess (CH/1970) has been a member of the Board of Directors since May 2007. He began his career in 1993 working part-time in the Human Resources Department of Tamedia. After completing his university stud-ies, he became an IT business consultant in 2000, specialising in new technologies and e-business at Applied Interna-tional Informatics and Cap Gemini (Switzerland) Ltd. During that time he also worked abroad, including one year in Vienna, where he built up a new consulting team. After completing his professional training as a coach and subsequent work experience in the field of management and personal development, he returned to operational human resources. From 2005 to 2011, he worked in the Human Resources Department of Swiss Life Schweiz AG, where he headed up Human Resources Management Switzerland. Andreas Schulthess graduated from the University of Zurich in 1999 with a Master’s degree in economics. He also completed a postgraduate programme, obtaining an Executive Master of Human Resources Management from the Institute for Applied Psychology in Zurich.
Survey
6 Excerpt from the Annual Report 2012
Remarks from the CEO
Well positioned to turn media change into success
Christoph Tonini, Chief Executive Officer
Over the last year Tamedia has continued to expand its activities in digital media and has made a decisive next step across our borders without losing sight of the core newspapers and magazine business in Switzerland. As a result of this strategy we have achieved a solid result in a challenging market environment and have cre-ated sound growth opportunities for the future.
The print advertising market continued to decline in 2012, and job and financial market adverts were par-ticularly affected by the sluggish pace of the economy. Tamedia’s focus was on maintaining the quality of the content in the daily newspapers that our readership is accustomed to while countering the decline in sales and net income by adapting our cost structure. Our strong position in different newspaper markets did, how-ever, also allow us to launch the bilingual magazine supplements Encore and Auto, and to tap into new sales potential with the cooperation between SonntagsZeitungand Bundin Berne. At the same time, our media ben-efited from the economies of scale of a nationally active media group that operates in key service areas such as newspaper printing. Thanks to these measures, the Print Regional division actually achieved a slight increase in its result despite experiencing a decline in sales.
In the profitable Print National division, the media dependent on the financial sector in particular suffered a significant fall in sales. Equally, the ongoing high losses posted by daily newspaper Le Matin, published in western Switzerland, are a cause for concern. On the other hand, the 20 Minutenmedia network once again strengthened its position in the Swiss media market in 2012. Over recent years, the 20 Minutenteam was able to win over readers in western Switzerland with 20 minutes, while also developing the commuter newspaper market in Luxembourg with L’essentiel. Since the launch of the Italian-language commuter newspaper 20 minuti one-and-a-half years ago, 20 Minutenhas become the only daily newspaper network in Switzerland to cover all three major language regions. As our investment in MetroXpressin Denmark shows, we are also prepared to put our experience in the commuter newspaper market and news websites to good use in other countries. We firmly believe that the 20 Minutenconcept that has proven successful in Switzerland will also meet with great success in Denmark. If the development of MetroXpressis as successful as we expect, we are likely to invest further in foreign media markets.
The most important step for Tamedia in 2012, however, was taken here in Switzerland. In the autumn, we invested in the leading jobs platform provider, jobs.ch AG, together with our partners Ringier. By making this investment in the clear mar-ket leader and acquiring a significant stake in the company, we have also been able to gain a foothold in the most profitable sector of the online classifieds market. Tamedia and Ringier intend further expand-ing this market presence in the online classifieds sec-tor over the coming years. For this reason, we have integrated the strong platforms we already held,
alpha.ch, jobup.ch and jobwinner.ch into jobs.ch AG.
Homegate.chhas also further consolidated its position
as the market leader in real estate portals by invest-ing in immostreet.ch. With both homegate.chand jobs.ch we now occupy a unique position in the Swiss online classifieds market. The two leading news websites 20
Minuten Onlineand Newsnet, as well as the high-reach
directory platform search.ch, complete our unique online portfolio.
Despite our impressive position in the user mar-ket, the Digital business division did not perform as well as expected. Investments in the expansion of
search.chand fashionfriends.chhad a negative impact
on earnings, the development of the digital display advertising market was more sluggish than antici-pated, and an increasing number of users are access-ing our news websites via mobile devices. Mobile advertising, however, is not yet widely used in the advertising sector. With projects to develop the mobile advertising market, joint projects at
20 Minutenand the Tages-Anzeiger, the setting-up of
digital payment models for newspaper subscrip-tions, and the investments in jobs.ch and
immostreet.ch, we are well placed to strengthen
income from the Digital division. And where digital projects do not meet our targets, we respond quickly and take the appropriate actions, as was the case with the deals platform scoup.chlast year.
In the autumn, Rolf Bollmann, who had been a member of the Management Board since 2005 and responsible for our media in Zurich since 2008, decided to take on a new challenge as CEO of Basler Zeitung Medien. I would like to express my sincere thanks to him for his successful commitment at Tamedia. At the start of the year, I had the pleasure of taking over as Chief Executive Officer from Mar-tin Kall. Tamedia owes a lot to his successful and tire-less commitment and without it, our company would not be as well positioned on the Swiss media market as it is today. We would also be without the economic means to independently and autonomously shape our future. I would like to thank him for this and also for the close cooperation that we have enjoyed over the past years. I am happy to say that he is likely to continue to be involved with Tamedia as a Member of the Board of Directors. I would also like to express my thanks to the Tame-dia Board of Directors for the confidence they have placed in me with my appointment to CEO, and to you, the shareholders, for your commitment to Tamedia.
Christoph Tonini Chief Executive Officer
Segment information in CHF 000 2012 2011 Print Regional 546 784 618 199 Print National 421 026 449 241 Digital 148 187 144 270 Eliminations (63 601) (94 519) Operating revenues 1 052 397 1 117 192 Print Regional (452 268) (519 863) Print National (323 896) (334 738) Digital (136 476) (119 440) Eliminations 63 601 94 519 Operating expenses (849 039) (879 523) Print Regional 94 516 98 336 Print National 97 131 114 502 Digital 11 711 24 830 Operating income before depreciation and
amortisation (EBITDA) 203 358 237 669
Print Regional 17.3% 15.9%
Print National 23.1% 25.5%
Digital 7.9% 17.2%
Management Board
8 Excerpt from the Annual Report 2012
Christoph Tonini,Chief Executive Officer Christoph Tonini (CH/I/1969) has been Chief Executive Officer of Tame-dia since January 2013. He joined TameTame-dia in April 2003 as Chief Financial Officer and member of the Man-agement Board. In recent years he has headed the Services, Newspapers Switzerland, Media Switzerland and most recently the Digital & 20 Minuten Division, among other responsibilities. He was also Deputy CEO from 2007. Before joining Tamedia, Christoph Tonini held various positions for Ringier between 1998 and 2003. Ultimately, he held the position of Head of Ringier Hungary and Romania. Christoph Tonini completed an MBA at St. Gallen University from 2001 to 2003. Prior to that, he completed an apprenticeship in offset print-ing and studied at the Swiss Engineerprint-ing School for Printprint-ing and Packagprint-ing (esig) in Lausanne from 1990 to 1993.
Christoph Brand,Head of the Digital Division Christoph Brand (CH/1969) has been a member of the Management Board since 1 October 2012 and is responsible for the Digital Division. Formerly CEO of software company Adcubum, Christoph Brand was CEO of telecommunications firm Sunrise from 2006 to 2010, where he imple-mented a successful growth strategy. Prior to this, Brand, who studied economics at the University of Berne, held key positions at Bluewin and Swisscom, lastly as Chief Strategy Officer and member of the Group Exec-utive Board. In addition to his operational responsibilities, he also served on the boards of directors of Direc-tories, Cinetrade, Swisscom Mobile and Micronas.
Ueli Eckstein,Head of the Regional Media German-speaking Switzerland Division Ueli Eckstein (CH/1952) has been a member of the Management Board since September 2009 and is responsible for the Regional Media German-speaking Switzerland Division. He was previously Deputy CEO and head of AZ Medien’s print media division. A trained typesetter, Ueli Eckstein had already worked for Tamedia during the period from 1976 until 1997. After having worked as an accountant for the former Tages-Anzeiger AG, he was, among other activities, a member of the management board, the manager of the accounting department and director of controlling and deputy publishing director of the Tages-Anzeiger. From 1995 to 1997, before changing to AZ Medien, Ueli Eckstein managed the publishing division of the SonntagsZeitung. His education included studies at the Tech-nical School of the Graphic Arts Industry Zurich (TGZ) and the Controller-Akademie Gauting in Germany.
Marcel Kohler,Head of the 20 Minuten Division Marcel Kohler (CH/1960) has been a member of the Management Board since January 2013 and is responsible for the 20 Minuten Division. He had previously been CEO of the 20 Minuten media network since 2006. He entered the media industry in 1982 when he joined Schaff hauser Bock. From 1985 Marcel Kohler worked in the publishing division of the Neue Zürcher Zeitungfor over 20 years. He initially held the position of key-account manager, before progressing to sales manager, head of advertis-ing and deputy publishadvertis-ing director. He was also a member of the project team responsible for the launch of
NZZ am Sonntag. He completed sales management training at the Swiss Marketing and Advertising Institute
(SAWI) in Biel as well as further training in systems marketing at the University St. Gallen.
Sandro Macciacchini,Head of the Finances Division Sandro Macciacchini (CH/1966) has been a member of the Management Board since 1 January 2008 and is responsible for the Finances Division. He took over as head of Tamedia’s Legal Department in 2003. He completed his law studies in 1995, qualifying as an attorney-at-law and beginning his career at a Berne-based attorney-at-law firm before working as a legal counsel for the Swiss Press Association until 1999. Sandro Macciacchini completed his dissertation on media law in April 2003. In 2006 he completed CAS training in financial and business accounting, and in 2009 he was awarded a Master of Advanced Studies Corporate Finance degree.
Serge Reymond,Head of the Publications romandes and Media German-speaking Switzerland Division Serge Rey-mond (CH/1963) has been a member of the Management Board since 1 May 2011 and is responsible for the Edipresse Suisse Division. With effect from the start of 2012, he also took on responsibility for the Media Ger-man-speaking Switzerland Division, which was newly created at that time. Serge Reymond studied mathemat-ics and econommathemat-ics at Lausanne University, gaining a first degree and an MBA. Prior to joining Tamedia, he worked for Galenica and the Swatch Group, among others, before taking on the management of the kiosk retail and distribution company Naville-Détail based in western Switzerland in 1997. In 2007 Serge Reymond was appointed as the CEO of the entire Naville Group. Serge Reymond joined the Edipresse Group as deputy chief executive officer in 2009, taking on the role of CEO of Edipresse Suisse (Tamedia Publications roman-des) with effect from 1 June 2009.
Andreas Schaffner,Head of the Publishing Services Division Andreas Schaffner (CH/F/1963) has been a member of the Management Board since 1 November 2009 and is responsible for the Publishing Services Division. In this position he is responsible for the three printing centres in Berne, Lausanne and Zurich, as well as the areas preliminary services, publishing logistics and reader-market services. After completing a bookbinder appren-ticeship, Andreas Schaffner acquired professional and management experience in the graphic arts industry prior to studying engineering at the Ecole Suisse d’Ingénieur des Industries Graphiques in Lausanne. In 1995 he joined Ringier as a project manager, where he headed various services and printing areas before becoming CEO of Ringier Print Adligenswil in 2005. Andreas Schaffner, who successfully completed a part-time Execu-tive MBA, was a member of the Ringier Switzerland Management Board from 2007 to 2009.
Serge Reymond Andreas Schaffner Sandro Macciacchini
Excerpt from the Annual Report 2012 10
Organisation Chart (Status 1 January 2013)
Shareholders Meeting of T amedia AG Board of Directors Management Board Secretary General Reto Spiri Human Resources Jacqueline Wüthrich Chairman Pietro Supino 2, 3, 4, 5 Members Tibère Adler 1, 3, 5 Martin Bachem 1 Pierre Lamunière 4, 5 Konstantin Richter 1, 2 Iwan Rickenbacher 2, 4 Andreas Schulthess 1, 3 CEO Christoph T onini 2, 3, 4, 5 1
Members of the Audit Committee
2
Members of the Journalism Committee
3
Members of the Nominating and Compensation Committee
4
Members of the Business Development Committee
5
Members of the Board of Directors of T
amedia Publications romandes SA
Corporate Development & Projects
Roland Wittmann
Corporate Communications
Christoph Zimmer
Regional Media
German-speaking Switzerland Ueli Eckstein Espace Media: Bantiger Post Bernerbär BZ Berner Zeitung Der Bund BZ Langenthaler Tagblatt Thuner Amtsanzeiger Media Zurich:
Furttaler & Rümlanger
Glattaler & V
o
lketswiler
Newsnet
Stellen-Anzeiger & Alpha
Tagblatt der Stadt Zürich
Tages-Anzeiger & Züritipp
Zürcher Unterländer Zürichsee-Zeitung Participations: BO Berner Oberländer T T Thuner Tagblatt other participations Publications romandes Serge Reymond 24 heures La Broy e Encore Femina GuideT V Cinéma hommages.ch Journal de Morges Le Matin Le Matin Dimanche Newsnet Romandie lesquotidiennes.com Le Régional Tribune de Genève Télétop Matin Participations: Le Temps Lausanne Cités GHI other participations Media German-speaking Switzerland Serge Reymond Annabelle Finanz und W irtschaft Das Magazin Schweizer Familie SonntagsZeitung Participations: T Vtäglich Digital Christoph Brand car4y ou.ch fashionfriends.ch homegate.ch piazza.ch search.ch Participations: doodle.ch jobs.ch Holding A G jobsuchmaschine.ch olmero.ch / renovero.ch zattoo.ch other participations 20 Minuten Marcel Kohler 20 Minuten 20 minutes 20 Minuten Online 20 minutes Online 20 Minuten Friday tilllate.com Participations: 20 minuti 24timer L’ essentiel metroXpress tio.ch Publishing Services Andreas Schaffner Applications support Distribution Logistics Prepress Printing facilit y Berne Printing facilit y Lausanne Printing facilit y Zurich
Reader market ser
vices Finances Sandro Macciacchini Controlling Corporate f inances Corporate accountancy Facilit y management Information technolog y Legal ser vices
Table of contents
Operational reporting and market conditions 13
Market assessment 13
Segment reporting in overview 15
Print Regional 15
Print National 19
Digital 22
The business divisions at a glance (exhibit) 25
Financial reporting 26
Financial overview 26
Changes in the group of consolidated companies 27
Operating revenues 27
Operating expenses 28
Operating income before depreciation and amortisation (EBITDA) 29
Balance sheet and shareholders’ equity 30
Changes in equity 31
Cash flow 32
Multi-year comparison 33
Information for investors 34
Tamedia Group 36
Consolidated income statement 36
Consolidated statement of comprehensive income 38
Consolidated balance sheet 39
Consolidated cash flow statement 40
Changes in equity 41
Investments 42
Market assessment
No growth in advertising market in 2012; Print continues to fall
The Swiss economy was dominated last year by the fall-out from the economic crisis in the eurozone and by the strength of the Swiss franc. With GDP growth of 1.0 per cent, the Swiss economy was, however, able to more than hold its own by international standards. Whilst private consumption, capital expenditure and imports developed positively, exports and public spending stagnated. The construction industry recorded a significant fall in performance. The mid-year unemployment rate was 2.9 per cent, slightly higher than the previous year’s figure of 2.8 per cent. The jobless figures reached their lowest level of 2.7 per cent in June 2012, after an easing of the situation on the labour market during the first six months. They subsequently rose again steadily, reaching their highest level for 2012 at 3.3 per cent in December.
The Swiss advertising market stagnated last year. According to Media Focus, a joint ven-ture between GfK Switzerland and Nielsen, gross advertising exposure, which is simply an expression of published prices and does not include discounts, fell by 0.1 per cent. Increas-ing advertisIncreas-ing exposure was recorded by the tobacco (+22 per cent), cosmetics and per-sonal care (+13 per cent) and IT and office supplies (+11 per cent) segments. In contrast, particularly negative trends were recorded by telecommunications (–13 per cent), enter-tainment electronics and photography (–12 per cent) and clothing and linens (–10 per cent). The two major retailers Coop and Migros again remained by far the largest advertis-ers in Switzerland in 2012.
Newspapers and magazines still hold the largest share of the advertising market, with 49 per cent, although there was another drop in market share compared with the previ-ous year (52 per cent). Meanwhile, television was able to make further gains. Accounting for a market share of 32 per cent, television continued to occupy second place, as in pre-vious years (2011: 30 per cent), followed by outdoor advertising, which accounted for 11 per cent (2011: 10 per cent). Classic online advertising accounted for 3 per cent of gross advertising exposure, as in the previous year. The reported figures for online advertising again do not include spending on search engine optimisation or classified advertisements, which recorded a further rise.
Advertising statistics from WEMF AG für Werbemedienforschung, which are based on net advertising revenues as reported by the media companies and thus ref lect actual mar-ket developments more reliably, show a decline of 11 per cent. Advertising sales fell across all forms of print media. Particularly hard hit were the financial and business press (–15 per cent) and the general interest and daily press (–12 per cent in each case). The tense situation on the labour market was ref lected in the job advertisements market. The num-ber of job advertisements placed in the Swiss press decreased by 26 per cent according to advertising statistics provided by WEMF. At the same time, this sharp drop highlights the structural change affecting the job advertisement segment. Whilst the overall market for job advertisements stagnated according to the Adecco Swiss Market Job Index, the num-ber of advertisements being placed on internet portals rose by 6 per cent.
The State Secretariat for Economic Affairs (SECO) and the leading economic forecasters expect to see a moderate upturn in the economic environment over the current year. The
jobless figures, however, can be expected to rise slightly. On this basis, Tamedia is expect-ing an ambivalent year for the Swiss advertisexpect-ing industry, with no turnaround anticipated until the end of 2013 at the earliest.
Operational reporting and market conditions
14 Excerpt from the Annual Report 2012
Dailies Regional weeklies Sunday press Financial and business press Public press Special interest Professional
periodicals Total Print
Net advertising expenditure Print 2012 in CHF mill. 2011 2012 1575 1350 1125 900 675 450 225 0 767 45 41 159 147 45 38 375 331 49 46 68 64
Source: Inseratestatistik WEMF AG für Werbemedienforschung
1613
873
Segment reporting in overview
Print Regional
Media performance in the Print Regional business divisionwas dominated in the year under review by falling income from print advertising. Nevertheless, thanks to the successful new strategies of various media offerings and measures to improve efficiency, income fell only slightly compared with the previous year.
The daily newspaper 24 heures, published in western Switzerland, celebrated its 250th anniversary in 2012. The highlight of the anniversary celebrations was the spectacular “Le Mur du Son” staged in September in Lausanne. Sales and income at the newspaper were down during the reporting year. The readership figures for this traditional Vaud newspa-per, however, grew slightly.
The total circulation of BZ Berner Zeitung, encompassing BZ Berner Zeitung, BZ Langenthaler
Tagblatt, TT Thuner Tagblatt, BO Berner Oberländerand Der Bund, recorded a strong level of
income despite falling sales. In July 2012, the BZ Berner Zeitunggroup was strengthened by the addition of the leading Oberaargau daily, BZ Langenthaler Tagblatt. The circulation and readership figures for all of the BZ Berner Zeitungpublications increased slightly on a year-on-year basis.
The Berne-based daily Der Bundexperienced a significant fall in sales in the 2012 finan-cial year. Thanks, however, to lower production and distribution costs combined with higher sales from subscriptions, income fell only slightly. Through a new cooperation project with SonntagsZeitung launched in September, content has been considerably improved.
During the year under review the job supplements Alphaand Stellen-Anzeigerwere unable to avoid the effects of a negative Swiss labour market or of the continuing shift in favour of the internet for advertising job vacancies. This caused sales and income to fall sharply.
The Tages-Anzeigereditorial team launched a single editorial team for all of its publica-tions during the reporting year with the Newsnetnews portal editorial team. The project is scheduled for completion by mid-2013. The aim of this new, converged organisational structure is to offer Tages-Anzeigerreaders attractive news content as part of a multimedia package. The in-depth approach and background knowledge of the daily will be combined with the speed of response provided by online articles. Tages-Anzeigerwas another publi-cation that suffered from the fall in print advertising during the year under review. Income levels improved, however, thanks to measures designed to improve efficiency, such as the realignment of regional reporting. The Tages-Anzeigeragain attracted more readers than in the previous year. The entertainment magazine Züritippalso surpassed expectations, recording a significant level of sales and income growth.
16 Excerpt from the Annual Report 2012 Segment reporting in overview
BERNS WOCHENZEITUNG
The daily newspaper Tribune de Genèveperformed well in 2012 despite falling sales and was able to end the year in the black, following a loss-making previous year. This positive development can be attributed in particular to savings in production costs. Overall, how-ever, income levels continued to be clearly unsatisfactory. Compared with the previous year, the readership figures for the Geneva-based daily were stable.
The daily newspapers Zürcher Unterländerand Neues Bülacher Tagblatthave been under the same journalistic management as the Zürichsee-Zeitungsince early 2012. Whilst the read-ership fell slightly, both publications have had stable circulation figures. The losses made
by Zürcher Unterländerand Neues Bülacher Tagblattwere reduced thanks to a new editorial
strategy and lower production costs, despite falling sales.
The Zürichsee-Zeitung, which in addition to three regional editions also encompasses the local newspapers Sihltalerand Thalwiler Anzeiger, significantly increased its earnings dur-ing the year under review. Sales were down over the same period. The withdrawal from the market of the regional editions of Tages-Anzeiger, which had previously taken on board some of the regional reporting of the Zürichsee-Zeitung, strengthened the daily’s position as the leading publication in the region.
The Bernerbärand Bümpliz Wochepublications only just met the targets set for them, in what was a difficult market environment. The Tagblatt der Stadt Zürich newspaper increased its earnings last year thanks to higher than expected advertising revenues. Meanwhile, the Furttaler, Glattalerand Rümlangerpublications improved their income lev-els, again thanks to savings in IT and overheads. The circulation figures for the weekly newspapers La Broyeand Le Régionalgrew during 2012, whilst falling sales had a negative impact on income. The weekly publication Journal de Morgesproduced a special supple-ment devoted to an international wine festival, Arvinis, for the first time in 2012 and entered into new media partnerships. Sales and income exceeded expectations.
The three newspaper printing facilities Centre d’Impression Lausanne, Druckzentrum Bern
and Druckzentrum Zürichunified their brand during the reporting year. By cutting print-ing costs, these printprint-ing facilities considerably eased the strain on Tamedia’s regional and national daily and weekly newspapers. New orders from third parties resulted in higher utilisation levels. Consequently, the printing facilities exceeded their sales and income tar-gets for the year.
Revenues (operating revenues) recorded by the Print Regional Divisionin 2012 fell by 8.9 per cent to CHF 484.3 million (previous year: CHF 531.8 million). The fall in sales can be attributed in the first instance to falling commercial advertising income and the collapse of job advertising business. The division’s operating income before depreciation and amor-tisation (EBITDA) fell by only CHF 3.9 million to CHF 94.5 million (previous year: CHF 98.3 million) thanks to efficiency-improvement measures. The EBITDA margin, at 17.3 per cent, was thus considerably higher than in the previous year (15.9 per cent).
Readership figures
Title MACH 2012-21 MACH 2011-21 Change
20 Minuten 1 397 000 1 379 000 1.3%
20 Minuten Friday 444 000 433 000 2.5%
20 minutes 507 000 461 000 10.0%
20 minuti 70 000 –
24 heures, total issue 233 000 223 000 4.5%
Annabelle 315 000 323 000 –2.5%
Bernerbär 98 000 –
Bilan 101 000 95 000 6.3%
BZ Berner Zeitung, total issue incl. Der Bund 364 000 353 000 3.1%
Das Magazin 769 000 776 000 –0.9%
Femina 371 000 403 000 –7.9%
Finanz und Wirtschaft 100 000 108 000 –7.4%
GuideTVCinéma2 211 000 256 000 –17.6% Le Matin 245 000 266 000 –7.9% Le Matin Dimanche 502 000 526 000 –4.6% Le Régional 77 000 76 000 1.3% Le Temps 115 000 119 000 –3.4% Schweizer Familie 732 000 749 000 –2.3% SonntagsZeitung 738 000 758 000 –2.6%
Tagblatt der Stadt Zürich 133 000 126 000 5.6%
Tages-Anzeiger 514 000 508 000 1.2% Télétop Matin 391 000 442 000 –11.5% Tribune de Genève 136 000 138 000 –1.4% TVtäglich 620 000 954 000 –35.0% Zürcher Oberländer 70 000 66 000 6.1% Zürcher Unterländer 46 000 48 000 –4.2% Zürichsee-Zeitung 72 000 75 000 –4.0%
Source: WEMF, MACH Basic 2012-2/2011-2
1 Relates to readership figures: Survey period June to end of July
Segment reporting in overview
18 Excerpt from the Annual Report 2012
Circulation
Title Circulation 20121 Circulation 20111 Change
20 Minuten 495 211 496 205 –0.2% 20 Minuten Friday 185 081 174 431 6.1% 20 minutes 202 892 203 407 –0.3% 20 minuti 34 045 36 0002 –5.4% 24 heures 71 957 75 796 –5.1% Annabelle 70 113 70 123 –0.0% Bantiger Post 22 182 22 216 –0.2% Berner Oberländer 19 824 20 855 –4.9% Bernerbär 100 485 105 752 –5.0% Bilan 13 767 13 111 5.0% Bümpliz Woche 22 200 22 046 0.7%
BZ Berner Zeitung, total issue3 173 684 174 162 –0.3%
BZ Langenthaler Tagblatt 15 022 8 152 84.3%
Das Magazin 411 277 433 172 –5.1%
Der Bund 49 725 50 231 –1.0%
Femina 160 098 175 077 –8.6%
Finanz und Wirtschaft 28 566 29 517 –3.2%
Furttaler 15 116 14 795 2.2% GuideTVCinéma 148 340 156 482 –5.2% Journal de Morges 6 061 6 043 0.3% La Broye 9 144 9 388 –2.6% L’essentiel4 95 676 94 707 1.0% Le Matin 55 299 57 107 –3.2% Le Matin Dimanche 160 999 175 951 –8.5% Le Régional 119 115 116 422 2.3% Le Temps 41 531 42 433 –2.1% Rümlanger 3 731 3 655 2.1% Schweizer Bauer 31 290 30 841 1.5% Schweizer Familie 186 594 186 588 0.0% Sihltaler 1 733 1 839 –5.8% SonntagsZeitung 175 882 182 129 –3.4%
Tagblatt der Stadt Zürich 131 578 136 625 –3.7%
Tages-Anzeiger 188 602 195 618 –3.6% Télétop Matin 159 259 175 644 –9.3% Thalwiler Anzeiger 3 910 4 324 –9.6% Thuner Tagblatt 21 402 22 456 –4.7% Tribune de Genève 48 688 51 487 –5.4% Zürcher Oberländer 32 196 33 663 –4.4% Zürcher Unterländer 19 878 20 297 –2.1% Zürichsee-Zeitung 36 226 38 853 –6.8%
Source: WEMF, Circulation bulletin
1 Survey period from 1 July to 30 June.
2 Print run according to publisher’s statement
3 Berner Zeitung, total issue incl. separately recognised publication Der Bund
4 Circulation distribution according to CIM, Centre d’Information sur les Médias
In the case of free publications, the number shown is the number of free copies circulated. In the case of publications for which a charge is made, the total number of copies sold is reported.
Print National
The Print National business divisionwas also challenged by the state of the print advertis-ing market, which was down overall and which, particularly in the case of media depend-ent on the financial sector, had a major impact. Introducing new national supplemdepend-ents enabled additional advertising segments to be captured. Earnings recorded by the Print National division remained at a high level despite falling slightly.
The editorial teams of the commuter newspaper 20 Minuten and the news platform
20 Minuten Onlinein German-speaking Switzerland were placed under joint management
in September of last year. This step had been preceded in the spring by the creation of a joint sales structure for the commuter newspaper and news platform. The readership and circulation figures for the commuter newspaper, which is produced in German-speaking Switzerland with five regional editions in total, were stable over the reporting period. In contrast, lower advertising income compared with the previous year led to falling sales and earnings.
In French-speaking Switzerland, the commuter newspaper 20 minutesachieved a signifi-cant rise in its readership coupled with stable circulation figures. Advertising revenues for
20 minutesfell last year. Earnings nevertheless remained stable at a high level, which can
be attributed to the optimisation of distribution and production costs in particular.
The Ticino commuter newspaper 20 minutimade a profit in the first year since its initial launch. In August 2012 the 20 Minutenmedia network invested in the leading Ticino news platform tio.ch, with which the commuter newspaper 20 minuti has been working closely since its launch.
The free people magazine 20 Minuten Fridayrepositioned itself on the reader market dur-ing the reportdur-ing year. It was given a new calmer look, with subtle adjustments to the edi-torial concept being introduced. Both the readership and the reach of the magazine rose slightly. Cost-saving measures contributed to improved earnings compared with the pre-vious year, despite sales being slightly lower than expected.
In 2012 the commuter newspaper L’essentiel, published jointly with the Luxembourg media house Editpress, was able to match the impressive results recorded during the pre-vious year. There was again significant growth in the readership of L’essentiel, up to 193,000 readers per day. Luxembourg’s second commuter newspaper, previously a competitor of
L’essentiel,ceased publication towards the end of the reporting year.
The women’s magazine Annabelleexperienced a fall in advertising revenues and earnings last year. It maintained its leading position in the user market, despite the fact that read-ership figures dipped slightly on a year-on-year basis. The annabelle.chwebsite was given a new look in October 2012 and focused more clearly on its readers’ needs.
Segment reporting in overview
20 Excerpt from the Annual Report 2012
The French-language business magazine Bilan, a new addition to Tamedia in the spring, was taken into account for the first time during the reporting year. The problems on the financial markets resulted in this business publication missing its sales and earnings tar-gets in what was a very negative market environment. However, the readership figures for the magazine were up slightly. As of this year, Bilannow has a new design and a revised editorial concept.
Finanz und Wirtschaftwas also hit by the major fall in advertising spending by the cial industry, with both its sales and earnings falling substantially during the past finan-cial year. In order to get Switzerland’s leading investor publication back on an economi-cally sound foundation, measures to cut production and editing costs were introduced during the second half of the reporting year. The new digital offering from Finanz und
Wirtschaft, launched in summer 2012, put in a positive performance.
The Saturday supplement GuideTVCinémawas relaunched under a new name last year. Enclosed with the daily newspapers 24 heures, Tribune de Genèveand, since December 2012,
La Liberté, the magazine now reports in greater detail on entertainment and film news in
particular. Despite advertising revenues remaining low, GuideTVCinémawas able to reduce its ongoing losses during the year under review.
The weekend supplement Das Magazinsucceeded in defending its strong position on the advertising market during the reporting year and in maintaining its income levels for the greater part. Its circulation figures were down by around 20 000 copies, due to reductions in the circulation of the newspapers in which it is enclosed. It is gratifying to note that, despite the fall in circulation, the high readership of Das Magazinremained more or less unchanged.
The daily newspaper Le Matinin western Switzerland was unable to meet its targets dur-ing the year under review. Whilst targeted measures to improve efficiency enabled costs to be cut, a fall in advertising income meant that it was not possible to offset the losses of recent years. The readership figures fell slightly, although Le Matinremained the daily with by far the widest reach in French-speaking Switzerland.
Le Matin Dimanche, published in western Switzerland with its supplements Télé Top Matin,
Feminaand Encore, met its high income expectations last year. The lifestyle supplement
Encore, which had been successfully launched in 2011, was developed into a national
fash-ion supplement during the year under review, and is now also included in SonntagsZeitung in a German-language version.
Schweizer Familierecorded a slight fall in advertising revenues last year, with sales income remaining stable. Nevertheless, measures to improve efficiency allowed the previous year’s income level to be surpassed once again. Another welcome development during 2012 was the renewed rise in readership compared with the previous year.
The research desk initiated by SonntagsZeitungand run jointly with Le Matin Dimanchewas already having a positive impact on the paper’s reporting during the year under review. Since September 2012, SonntagsZeitunghas been appearing in the Berne region in collab-oration with the daily Der Bundwith an increased circulation. In 2012 this offer is also going to be offered to subscribers to Basler Zeitung. Despite a declining advertising market,
SonntagsZeitungsucceeded in maintaining its advertising revenue and in matching the
pre-vious year’s gratifying result.
The luxury goods and watch magazine Tribune des Artshas been included in the Tamedia financial statements for the first time. The regular supplement enclosed with Tribune de
Genèvedevoted to articles on watchmaking, jewellery, precious stones and art met its sales
and income targets last year.
The circulation and readership of the TV listing magazine TVtäglich, produced by Tame-dia together with Ringier, both fell during the year under review due to the falling circu-lation of the newspapers with which it is sold. Nevertheless, it managed to largely main-tain its advertising revenue and income levels.
Revenues (operating revenues) recorded by the Print National Divisionin 2012 fell by 6.0 per cent to CHF 420.3 million (previous year: CHF 447.4 million). Operating income before depreciation and amortisation (EBITDA) declined by 15.2 per cent to CHF 97.1 million (pre-vious year: CHF 114.5 million). The EBITDA margin, at 23.1 per cent, remained high but was slightly lower than that of the previous year (25.5 per cent).
Segment reporting in overview
22 Excerpt from the Annual Report 2012
Digital
Media performance in the Digital business divisionwas dominated last year by the disap-pointing performance of the display advertising market and an increasing shift towards the use of mobile devices. In this regard, the development of commercialisation for mobile use continues to lag a long way behind more traditional digital content, as regular web-sites.
The 20 Minuten Onlinenews platform again recorded strong increases in its visitor figures, in both German-speaking and French-speaking Switzerland. Advertising sales grew fur-ther during the reporting year, but were still below expectations. The main reason for this muted performance lies in the unsatisfactory provision of appropriate smartphone and tablet commercialisation. Additional spending relating to the expansion of online editing and technology placed a strain on earnings, which fell substantially compared with the previous year.
The car4you.chsite greatly expanded its functionality during the year under review. Pri-vate individuals can now place adverts free of charge and the process has been made much simpler. These innovations resulted in the number of vehicles listed on the portal exceed-ing 80 000 for the first time in autumn 2012. car4you.chdid not achieve its sales targets and again posted a loss for the reporting year due to its high levels of investment.
The Swiss real estate platform homegate.chsuccessfully defended its leading position on the property advertisements market during 2012 thanks to significant growth in the num-ber of properties being advertised. By acquiring a 20 per cent stake in immostreet.ch,
home-gate.chhas further expanded its market leadership and now occupies a leading position in
the majority of Switzerland’s regional markets. This gratifying development was also ref lected in growing sales and income figures for 2012.
The online shopping club FashionFriendswas included for the first time during the report-ing year. Tamedia increased its holdreport-ing in this platform, which specialises in heavily dis-counted offers on premium fashion and accessories brands, to 65 per cent on 1 October 2012, and therefore now holds a majority interest. FashionFriendsposted significant growth in its sales and user figures during the past year but did not meet its ambitious targets in a market environment characterised by intense competition.
In 2012 the Tamedia Group and the Ringier media house announced their acquisition of jobs.ch Holding AG, the operator of Switzerland’s jobs platform with the greatest reach,
jobs.ch. Following the takeover of jobs.ch Holding AG with effect from 30 November 2012, Jobup AG, which was previously owned by Tamedia alone, will be merged with retroac-tive effect into jobs.ch Holding AG as of 1 January 2013. The jobs platforms alpha.ch,
ictca-reer.ch, ingjobs.ch, jobup.ch, jobs4finance.ch, jobs4sales.ch, jobsuchmaschine.ch, jobwinner.ch,
med-talents.ch, stellen.chand topjobs.chnow all belong to jobs.ch,which also holds a 49 per cent
Since the beginning of 2012, Newsnet – as well as including the news platforms of
baslerzeitung.ch, bernerzeitung.ch, derbund.ch and tagesanzeiger.ch – has also included the
news portals of 24heures.ch, lematin.chand tdg.ch in French-speaking Switzerland. This means that, for the first time, advertising clients can target both linguistic regions through one booking. In terms of content, new additions include a bilingual political blog. This enables media professionals, politicians and experts to enter into a dialogue with readers in both French and German-speaking areas. User numbers and sales developed positively during the reporting year, but the expectations in terms of commercialisation were not able to be met. The high level of investment needed in the editorial team and in sales pro-motion contributed to a loss.
The news portal lessentiel.luincreased its advertising sales during the past year and gen-erated positive income for the year as a whole for the first time. The user figures for
lessen-tiel.luincreased by more than one third over the reporting period.
The small ads portal piazza.chwas completely redesigned at the end of last year and also separated from the 20 Minutenmedia network. Since then, piazza.chhas managed to posi-tion itself as an independent brand again. High levels of investment in what is a fiercely competitive market for small ads resulted in a loss being recorded for the reporting period.
The leading Swiss directory platform search.ch, operated jointly by Tamedia and Swiss Post, achieved a major milestone in the history of Swiss internet usage last year. For the first time in Switzerland, more than 2.1 million people visited a single website in the space of one month. The sales team was expanded further during 2012, again generating a con-siderable increase in sales but, as expected, with a negative impact on income.
The dating platform swissfriends.chrecorded stable sales and income. At the end of the reporting period Tamedia decided to cease its involvement with swissfriends.ch for strate-gic reasons, handing the operation over to the platform’s managing director.
The nightlife platform tilllate.com, which forms part of the 20 Minutenmedia network, heavily expanded its editorial reporting during 2012 and also launched a new iPhone app. Mobile use of the platform subsequently grew significantly. Compared with the previous year, user numbers were up by almost 60 per cent, and the platform was also able to expand its leading market position. Sales developed slightly less well than expected.
Revenues (operating revenues) from third parties recorded by the Digital business division
rose by 7.1 per cent in 2012 to CHF 147.8 million (previous year: CHF 138.0 million). Fac-tors contributing to sales growth included the first-time consolidation of jobs.chand the development of the search.ch directory platform. High levels of investment in the further development of digital marketplaces and news platforms and the unsatisfactory develop-ment of the online advertising market placed a burden on operating income before depre-ciation and amortisation (EBITDA), which duly fell by 52.8 per cent to CHF 11.7 million (2011: CHF 24.8 million). The EBITDA margin, at 7.9 per cent, was significantly down on the previous year (17.2 per cent).
Segment reporting in overview
24 Excerpt from the Annual Report 2012
Reach
Websites NET-Metrix-Profile1 NET-Metrix-Profile1 Change
2012-2 2011-2 20 Minuten Online 1 896 000 1 463 000 29.6% 20minuten.ch 1 532 000 1 165 000 31.5% 20minutes.ch 487 000 282 000 72.7% tio.ch 153 000 111 000 37.8% Bilan 28 000 18 000 55.6% fuw.ch 33 000 22 000 50.0% homegate.ch 868 000 701 000 23.8% lessentiel.lu2 469 526 354 654 32.4% Newsnet Bern 377 000 304 000 24.0% bernerzeitung.ch 276 000 245 000 12.7% derbund.ch 170 000 109 000 56.0% Newsnet WCH 555 000 3 24 heures.ch 264 000 233 000 13.3% LeMatin.ch 343 000 318 000 7.9% tdg.ch 255 000 209 000 22.0% PoolFéminin 208 000 3 annabelle.ch 82 000 81 000 1.2% femina.ch 72 000 65 000 10.8% schweizerfamilie.ch 71 000 49 000 44.9% search.ch 2 063 000 1 704 000 21.1% sonntagszeitung.ch 76 000 57 000 33.3% tagesanzeiger.ch 893 000 737 000 21.2% tilllate.ch 332 000 209 000 58.9%
Source: NET-Metrix AG, NET-Metrix-Profile Unique User (persons) per month
1 Survey period from 1 April to 30 June of the respective year
2 Survey by CIM metriweb or CIM Spring from November 2012
in CHF mill. 2011 2012 1225 1050 875 700 525 350 175 0
Print Regional Print National Digital Total
Revenues third parties by segment
484 532 447 420 138 148 Exhibit 1 1117 1052 in CHF mill. 2011 2012 245 210 175 140 105 70 35 0
Print Regional Print National Digital Total
EBITDA by segment 95 98 115 97 25 12 Exhibit 2 238 203
26 Excerpt from the Annual Report 2012 Financial overview
Accounting standards
The revised standards (IFRS) IAS 12 “Income Taxes” (amended) and IFRS 7 “Financial Instruments: Disclosures” (amended) were to be applied for the first time in the 2012 financial year. Their first-time application did not lead to any significant changes in the consolidation and measurement principles or in the net assets and earnings position.
The new and revised standards and interpretations to be applied to the 2013 consolidated financial statements are not being applied earlier than required. Based on an assessment of these standards, the following inf luencing factors should be considered in particular: –IAS 19 “Employee Benefits” (amended)
The changes to IAS 19 “Employee Benefits” mean that the expected return on plan assets is no longer calculated on the basis of an estimated rate of return on assets. Instead, the discount rate is now used to calculate the net present value of obligations under defined benefit plans. This means that net plan liabilities/net plan assets are now only subject to interest at the discount rate. Based on an assessment as of 31 December 2012, Tame-dia estimates that retrospective application of this method with effect from 1 January 2012 results in personnel expense that is CHF 1.3 million higher and net financial return that is some CHF 14.2 million lower than the figure disclosed as of 31 December 2012. Additionally, equity as of 31 December 2012 (without taking taxes into account) is increased by CHF 12.8 million due to past service cost not yet recognised.
–IFRS 11 “Joint Arrangements”
Under the new standard, proportionate consolidation, as currently applied, is no longer permitted. Companies previously subject to proportionate consolidation will now be included at their pro rata equity values as “Investments in associated companies / Joint ventures”, and the share of net income will be reported net as “Share of net income of associated companies / Joint ventures”. Tamedia expects the application of this new standard to result in revenues for 2012 being approximately CHF 34.3 million lower compared with the figures published as of 31 December 2012, with EBITDA down by CHF 2.6 million and EBIT some CHF 1.8 million lower. No effect on net income is expected.
Change in presentation / restatement of prior year figures
It is part of Tamedia’s business strategy to acquire non-controlling interests in companies with an economic future before proceeding to actively support and promote the develop-ment of these companies in cooperation with the other shareholders.
If a company merger takes place over several stages (step up acquisition), shares held to date in an associated company are revalued at their fair value at the time of control being passed and the resulting gain or loss is recognised in the income statement. It is possible that an associated company might not develop as planned, resulting in the need for an impairment. In the interests of a transparent and meaningful accounting, any fair value adjustments pursuant to IFRS, in either a successful or an unsuccessful case, should be included in other operating income.
For this reason, Tamedia has decided that any revaluation gains or losses in respect of step up acquisitions will in future be disclosed in other operating revenues. As a result of the change in presentation, the gain posted in financial income in 2011 was reclassified from revaluation gains.
Changes in the group of consolidated companies Acquisitions
With effect from 30 November 2012, Tamedia AG and the Ringier media house acquired a 100 per cent stake in jobs.ch Holding AG. Tamedia and Ringier will each hold a 50 per cent share in the company. With retrospective effect from 1 January 2013, Tamedia will incor-porate its online job advertisement subsidiary Jobup AG into the partnership. Tamedia and Ringier have agreed on a control option that enables Tamedia to carry out its consolidation pursuant to IFRS.
On 1 October 2012 Tamedia AG acquired a further 20 per cent share in FashionFriends AG, increasing its holding from 45 per cent to 65 per cent. This increase in its holding gives Tamedia overall control of FashionFriends AG, which has been included in the group of consolidated companies since 1 October 2012. Other smaller acquisitions during the 2012 financial year included the business publication Bilan, the magazine Tribune des Artsand
the Langenthaler Tagblattnewspaper.
Further details on these transactions can be found in Note 1 of the Notes to the consol-idated financial statements.
in CHF mill. 2011 2012 1050 900 750 600 450 300 150 0 Media revenues Printing revenues Other operating revenues Total operating revenues Operating revenues 962 1019 55 54 44 36 Exhibit 3 1117 1052
28 Excerpt from the Annual Report 2012 Disposal of consolidated companies
The TV activities TeleBärnand TeleZüriwere sold to AZ Medien AG with effect from 4 Janu-ary 2012. At the same time, Tamedia sold its 100 per cent stake in Belcom AG, the mar-keting organisation in which the sales teams of Radio 24and TeleZüriare bundled, to AZ Medien AG. The radio broadcaster Capital FMwas sold to Zürichsee Media AG with effect from 27 April 2012, and Radio 24 AG was sold to BT Holding AG with effect from 12 July 2012.
On 30 September 2012 Tamedia sold its investment in Terre & Nature SA, representing a 98 per cent stake, to Multimedia Gassmann AG. The sale of the 49 per cent stake in
Schweizer Bauerto Ökonomische und Gemeinnützige Gesellschaft des Kantons Bern (OGG)
took place on 12 December 2012.
Revenues (operating revenues)
Tamedia’s revenues (operating revenues) fell by 5.8 per cent or CHF 64.8 million to CHF 1,052.4 million. While changes in the group of consolidated companies contributed to an increase in revenues of CHF 8.8 million, existing activities resulted in a drop of CHF 73.6 million. Further information on revenues can be found in the segment reporting for each business division.
In April 2011 Tamedia decided to end its involvement in radio and TV broadcasting, as well as in specialist mobile and agricultural media. Until their disposal, these activities were reported as discontinued operations. Discontinued operations generated revenues of CHF 13.2 million in 2012 (previous year: CHF 61.8 million). As of 31 December 2012 there were no further discontinued operations.
Financial reporting in CHF mill. 2011 2012 1050 900 750 600 450 300 150 0 Costs of material and services Personnel expenses Other operating expenses Total operating expenses Operating expenses 166 177 415 404 288 279 Exhibit 4 880 849
Operating income before depreciation and amortisation (EBITDA)
Operating income before depreciation and amortisation (EBITDA) decreased by CHF 34.3 million or 14.4 per cent to CHF 203.4 million. The EBITDA margin fell from 21.3 per cent in the previous year to 19.3 per cent in 2012. The separately disclosed discontinued oper-ations show a profit of CHF 0.8 million at the EBITDA level (previous year: CHF 10.2 mil-lion).
Operating income (EBIT) was down by 20.9 per cent or CHF 37.8 million to CHF 143.0 million, while the EBITDA margin fell from 16.2 per cent in the previous year to 13.6 per cent.
Net income
The reported net income for 2012 of CHF 152.0 million was 15.0 per cent or CHF 26.8 mil-lion below the previous year’s figure of CHF 178.8 milmil-lion. Whilst associated companies contributed a profit of CHF 6.9 million in the previous year, they accounted for a CHF 4.0 million share of net income during the year under review. Compared with the previous year, the 2012 figure no longer included the holding in Epsilon SA, which was sold in 2011. The rest of the change was largely attributable to the general deterioration in eco-nomic conditions.
The financial income grew by CHF 2.3 million to CHF 30.2 million. Net financial income resulting from the application of IAS 19 declined by CHF 5.1 million to CHF 12.8 million in the year under review. The adjustment of CHF 18.1 million (previous year: CHF 10.6 mil-lion) to the expected final instalment of the purchase price for Edipresse Suisse resulted in an increase in other financial income. Income from the disposal of investments is attrib-utable to the sale of various small investments. Exchange rate gains were down slightly, while there was a decline in interest costs as a result of the repayment in the first half of the year of the purchase price due in connection with the acquisition of Edipresse Suisse.
in CHF mill. 2011 2012 1225 1050 875 700 525 350 175 0 Operating revenues Operating expenses Operating income before depreciation and amortisation (EBITDA)
Operating income before depreciation and amortisation (EBITDA)
1052 1117 880 849 Exhibit 5 238 203
