Press release

From magazine house to house of content – Gruner + Jahr Executive Board launches strategic transformation of the publishing house

- G+J beginning long-term process of transforming from a magazine house into a house of content
- G+J Deutschland to be organised into eight defined communities of interest
- Broad product and innovation campaign launched
- Shareholders to join in investing several hundred million euros in organic growth and acquisitions

Hamburg, 10 September 2013 - The Gruner + Jahr AG Executive Board today announced the transformation from a magazine house into a house of content.

The Executive Board cites three premises for this move. First, the market for quality content is set to grow. Second, the digital business is rapidly growing in importance, and the way G+J pursues the tremendous opportunities arising here will be critical for the company's success. Third, the G+J magazine business is highly profitable and successful. Well-crafted magazines do have a bright future.

Julia Jäkel, Chief Executive Officer of Gruner + Jahr AG: "A lot of G+J magazines are selling quite well, and our advertising business in Germany is up since last year. Circulation figures are developing well in many segments. New magazines have found their place on the market and our flagship products STERN, BRIGITTE, GALA and CAPITAL are back on track after undergoing substantial makeover."

The G+J transformation is designed as a long-term process. Rather than maximising profits in the short-term, the goal is to steadily enhance the enterprise value over the long term. The new paradigm at G+J represents a radical focus on content and thorough orientation on the interests of readers, users and customers.

Gruner + Jahr aims to be "best in print". This means applying the highest standards for content, production, distribution and advertising sales.

In addition to the ongoing revitalising process for print products and the investments in new print magazines, G+J will be launching a major digital product and innovation campaign. The first step will be to put all magazine content into a digital format. This enables G+J to exploit the special qualities of its vast inventory of long-lasting content. In addition, existing content on specific topics will be recompiled within new eMags and mobile apps. G+J firmly believes that a straight focus on content will put the company much more in tune with user preferences and needs, opening up new product opportunities. G+J already operates exceedingly well-positioned websites and intends to continue investing in order to further develop and strengthen its market position.

G+J Deutschland to be organised into eight defined communities of interest

The core of G+J's future business is to provide customers with content across all relevant platforms. G+J aims at producing high-quality, highly relevant content which customers are willing to pay for. In addition to that G+J will make itself an indispensable part of users' lives within the defined communities of interest by providing content and content-related commerce and paid services.

G+J CEO Julia Jäkel: "The core competency of the G+J house of content is our indepth-knowledge of our users and customers – our communities of interest".

G+J is already very successful in its defined communities of interest and will be further consolidating its strong market positions.

G+J Deutschland will be structured into eight communities of interest: FOOD, LIVING, FAMILY, WOMEN, PEOPLE & FASHION, NEWS, SCIENCE and BUSINESS & SPECIAL INTEREST. In all eight communities G+J already holds excellent starting positions: the company thoroughly knows its users, being either the market leader or in a strong market position.

Expansion of Commerce and Paid Service

Going forward G+J will be using its customer insights to operate complementary businesses. G+J will thus be significantly developing its licensing business and investing in commerce and paid services.

G+J CEO Julia Jäkel: "As a content provider, we are experts on our users' and readers' interests and on the issues they are concerned about. This allows us to provide them the best offerings. Our content and, in most cases, market-leading positions in many communities of interest give us substantial reach. We will not be diversifying into any business not related to our communities of interest. All acquisition and investment activity will be aligned with our content."

Shareholders will join G+J in investing several hundred million euros in organic growth and acquisitions over the next years. Julia Jäkel: "Our shareholders Bertelsmann and the Jahr family have expressed a lot of confidence in the present Board, which is key for successful cooperation."

G+J is an international enterprise. G+J is outstandingly positioned and/or the leader in many international markets, and is working full force to maintain and further consolidate its activities in both Europe and Asia.

The transformation from a magazine house into a house of content is not a blueprint for international activities or equity holdings. Markets, market sizes and conditions in the countries, in which G+J operates, do vary, as well as the country portfolios.

Over the weeks and months ahead, decisions will be made in close dialogue with the country management as to how the transformation is to be performed in the respective countries.

The Executive Board's strategy is summarized in the new Gruner + Jahr mission statement. G+J CEO Julia Jäkel: "We are a house of content. As a house of content, we deliver our vast array of content offering across all relevant platforms.

Our company philosophy and the resulting actions are focused on the interests and needs of our readers, users and customers. Our robust customer insights into our communities of interest enable us to develop complementary businesses beyond our content-based activities.

To become one of the most successful content providers in a digitized world, we will rebuild and reshape our company. Our goal is sustainable market leadership and profitability."

Press enquiries:

Claus-Peter Schrack
Executive Vice President
Corporate Communications
20444 Hamburg
Phone +49 (0) 40 / 37 03 - 3113
Fax +49 (0) 40 / 37 03 - 56 17

Christian Merl
20444 Hamburg
Phone +49 (0) 40 / 37 03 - 29 08
Fax +49 (0) 40 / 37 03 - 56 17