Innovation @ Axel Springer

Early-stage Investment Innovation@AS Where It Slots Into The Value Chain Electronic Media Division Strategic Product Development Size R&D & Development Early-stage Investment Growth Investment Open Innovation Business Stage

Axel Springer Plug and Play Berlin based accelerator and bridge to the Silicon Valley Batch I: 7 companies Batch II: 7 companies Pages live on Earning s Conversions

Overview Axel Springer Plug and Play Accelerator Key facts Pan-European start-up accelerator, founded 02/2013. 50:50 Joint Venture with Plug and Play Tech Center Sunnyvale (accelerated 1500+ startups). Three-months programme for very young start-ups in Berlin, individual follow ups in the Silicon Valley. Substantial programme sequences: assets (25k €), office space, support, coaching, workshops, networking, access to VCs for follow-up financing. 2-3 cycles per year, each ending with a demo day. Planned to do about 20 seed investments (5% share) per year; no direct strategic fit required, but should ideally be able to use Axel Springer’s resources as assets. Proposition: acceleration of successful companies; for Axel Springer used as a means to get exposure to new areas of business and to foster innovation by collaboration with Axel Springer brands in an early stage

IDEAS Building New Business From Scratch The Iconist TunedIn design commerce 2nd screen tv product Prepaid BILD mobile distribution Last Minute Local Epos mobile discounts immersive history app ShopNow Room 49 mobile loyalty digital celebrity property

Overview Axel Springer IDEAS Key facts R&D and innovation lab, founded late 2012. Small core team from inside AS (editorial, design, business, engineering), variable geometry of project teams from inside and outside the company. Proposition: serial experimentation, explore new digital areas of business through ‘pathfinder’ products, induce cultural change and ‘intrapreneurship’, establish integrated processes for digital product development. Reporting directly to the board. All projects must show close fit with AS activities and be able to employ existing ecosystem as an ‘unfair advantage’ over independent start-ups. Uses entrepreneurial incentive structures: spin-out projects into companies, give shares to the management teams, work closely with Plug & Play for mentoring etc. Idea Research Concept Business Case Execution

ME@IDEAS Partnering With Individual Entrepreneurs For New Projects And The Staffing Of Existing Ventures www.mediaentrepreneurs.de 7

Common Thread An ‚Old‘ Company As A Tool Set For ‚The New‘ Location Know how Reach Distribution / POS Salesforce Creativity 8