26 > 28 May th FIPP World Magazine Congress Carrousel du Louvre - Paris Opportunities for cross-border publishing: Czech Republic Tomáš Böhm General Manager Ringier ČR, a.s.

Czech Republic: Content General Overview Czech Print Market Description Concepts used when entering the market Opportunities and Threats/Obstacles Success Story

Czech Republic: General overview Population: 10,281,856 inhabitants Landscape: 78,866 sqkm GDP per capita (2002): 690 EUR Unemployment: 9.8% Inflation: 1.8% VAT: 22% (print 5%) Print periodics: 1,260 (120 newspapers, 1,140 magazines)

Czech Print Market is fairly developed Print Market is dominated by 45 main publishers Newspapers represent 8 publishers out of which  6 foreign publishers (Frankenpost, Handelsblatt, Metro, Passauer Presse, Rheinische Post, Ringier)  2 local publishers  Magazines represent 38 publishers out which  18 foreign publishers (Readers Digest, Sanoma, Heinrich Bauer, BertelsmannSpringer, Ringier, IDG, Egmont, Hachette…)  20 local publishers

Major foreign publishers are present on the Czech market Foreign publishers are active in newspapers and magazines  Newspapers  Frankenpost, Handelsblatt, Metro, Passauer Presse, Rheinische Post, Ringier  Magazines  Bancroft, H. Bauer, Beheer-en, BertelsmannSpringer, Burda, Deutscher Supplement Verlag, Egmont, Hachette Filipacchi, Hearst, IDG, Motor-Presse, Reader’s Digest, Ringier, Sanoma, A. Springer, Vogel,

Foreign publishers successfully control both distribution and advertising incomes More than 50% of total income is controlled by foreign publishers  Distribution  81% of income in newspapers goes to 4 major publishing groups  55% of income in magazines goes to 6 major publishing groups  Advertising  87% of ad spend in newspapers goes to 4 major publishing groups  53% of ad spend in magazines goes to 6 major publishing groups

What are the concepts used? Acquisition of established local publishing house (Rheinische Post, Passauer Presse, Handelsblatt) Acquisition of/merge with established local publishing house and launch of foreign concepts (Sanoma, Hachette Filipacchi) Establishing of own publishing house on foreign concepts (Ringier, Europress, Reader’s Digest)

Foreign concepts adopted to local conditions can be seen in all magazine segments Auto Moto – 5 titles (Springer, Bertelsmann) Man/Sex/Sport – 12 titles (Egmont, Hachette, Stratosfera, Sanoma) Woman/Living – 12 titles (Burda, Europress, Sanoma, Hachette, Stratosfera) Music/Film/TV – 5 titles (Springer, Burda, Europress, Ringier, Hachette) Children – 12 titles (Egmont, Springer, Europress, Stratosfera) Computer/Inet/Others – 12 titles (IDG, Burda, others)

Why they are so successfully established and positioned? Because they had/have: Right concept Right timing Skills how to transfer publishing and distribution know how Right people (optimum mix of locals and expats) Will to use of intra company synergies Dedication to long term investments Will to succeed

What are the opportunies and threaths/obstacles? The opportunities are here, the obstacles can be overcome! Opportunities:  developed and stable economy and infrastructure  skilled,literate and hardworking people  accession to EU in 2004 Threats/Obstacles:  in all segments competitors already present  language and cultural barrier  wrong concept/timing/pricing

Success Story: Ringier in Czech Republic Long way with a lot of ups and downs… History of Ringier:  1991 – company formed introducing Czech version of Cash  1992 – introduction of first tabloid in CR based on Blick and TV guide TeleTip, purchase of print plant in Ostrava  1993 – launch of Nedelni Blesk (Sunday edition). Launch and acquisition of several magazines incl. largest TV guide.  1994 – 96 – further magazines acqusition (incl. ABC, the oldest children magazine)

Success Story: Ringier in Czech Republic cont...but development continues… History of Ringier:  – joint venture with Axel Springer, news magazine Tyden acquired  1999 – launch of TV Plus and serious Sunday newspaper (NN)  2000 – sale of Tyden and close of Sunday newspaper (NN) Blesk becomes for some months most sold daily  2001 – 2002 acqusition of TV Revue from H. Bauer, acquisition of daily Sport and print plant in Prague

Success Story: Ringier in Czech Republic cont...to its final succes! Current position and portfolio of Ringier:  Ringier – No 2 on total market (15%), No 3 in magazines (12%)  dailies – Blesk: most sold daily, Sport: only Czech daily  Sunday – Nedelni Blesk: the only Sunday newspaper  magazines – 3 TV guides – No 2 on the market Reflex – succesful society magazine ABC – most popular children title (no music)  printing plants – 2 own printig plants securing safe printing of our products

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