Common business strategy after merger with Edipresse Switzerland

Press Release 

further investments in online media - evaluation of sale of radio and TV activities and special interest media Mobil

Tamedia and Edipresse Switzerland have adopted a common business strategy with newspapers, magazines and online media as the core business. In view of the particularly unfavourable regulatory environment and modest potential synergies, the sale of the radio and TV activities and the special interest media Mobil is being evaluated. As a consequence of the merger of the two businesses, Tamedia is adapting its business organisation and will structure the segment reporting by markets. Board Member Karl Dietrich Seikel will not stand for re-election. Tibère Adler, Chief Executive Officer of Edipresse Group, will be proposed for election as a new member of the Board of Directors.

Lausanne und Zurich, 12 April 2011 - The media companies Tamedia and Edipresse Switzerland, which merge with the takeover of Edipresse Switzerland by Tamedia, have adopted a common business strategy. The core business remains newspapers and magazines with wide distribution and online media. In the coming years, Tamedia plans to further strengthen its newspapers and magazines and grow through investments in its online platforms and further participations in online businesses. Already in the year 2012, 25 per cent of the result is to be achieved with digital activities.

With the merger of Edipresse Switzerland and Tamedia, the fourth largest media company, after SRG SSR, Publigroupe and Ringier, is created with a turnover of CHF 1,169.2 million and operating income (EBIT) of CHF 151.9 million (each on the basis of 2010). The business employs a total of 3,398 people (full-time equivalents as per 31 December 2010). The principal locations are Berne, Geneva, Lausanne and Zurich.

Evaluation of the sale of radio and TV activities and special interest media Mobil
At the same time as adopting the new business strategy, Tamedia and Edipresse Switzerland have decided to evaluate the sale of the radio and TV activities, and also the special interest media Mobil with Automobil Revue and Revue Automobile. While Tamedia has in the past invested in Radio and TV stations, Edipresse Switzerland does not have any own activities in this area. In view of the limited potential synergies, and the uncertain allocation of licenses to Tamedia after the expiry of the existing transmission licenses, the business may therefore contemplate a sale of the four stations in spite of the strong positions of Radio 24, Capital FM, TeleBärn and TeleZüri. As a consequence, Edipresse Switzerland's participation in La Télé is also no longer of strategic importance.

Decisive factors for a sale of the radio and TV stations, and the special interest media, will be, among others, whether a potential purchaser has a clear concept for the further development, whether future perspectives exist for the employees, and whether the sale price is convincing. Discussions with potential purchasers are to be commenced in the coming weeks. The evaluation is to be completed by the end of the year.

Karl Dietrich Seikel leaves the Board of Directors - Tibère Adler strengthens the Board of Directors
Karl Dietrich Seikel, a member of the Board of Directors of Tamedia since 1996, will not stand for re-election at the Annual General Meeting on 6 May 2011. The former Chief Executive Officer of Der Spiegel wishes to engage himself more in the German publishing world in the future. The Board of Directors very much regrets this withdrawal, thanks Karl Dietrich Seikel for his longstanding commitment to the company and for his important contribution to the development of the business, and will maintain a friendly relationship with him.
In consequence of the merger of Edipresse Switzerland and Tamedia, Tibère Adler, Chief Executive Officer of Edipresse Group since 2005, is to be elected to the Board of Directors of Tamedia. Born in Geneva in 1963, Tibère Adler qualified in law, absolved a Management Course at IMD in Lausanne, and has been with Edipresse Group since 1993. When he is elected to the Board of Directors of Tamedia, Tibère Adler will resign from all operational duties at Edipresse Switzerland.

New business organisation with business segment Digital
The merger with Edipresse Switzerland leads to the adaptation of Tamedia's business organisation as from 1 May 2011. The new business organisation is intended to assure the proximity of the individual media to the users and advertisers and at the same time make possible the utilisation of the benefits of size in the service areas such as Printing, Production Services or IT. Edipresse Switzerland will continue to operate as a business segment under the management of Serge Reymond. The 47 year old mathematician and economist has been the Chief Executive Officer of Edipresse Switzerland since 2009 and was formerly the Chief Executive Officer of Naville S.A. and held a position in the Swatch Group. He will at the same time become a member of the Management Board of Tamedia.
The online marketplaces and the other online services will be strengthened with the creation of the new Digital Division headed by Christoph Tonini, the Vice Chairman of the Management Board. Ueli Eckstein remains responsible for the Espace Media Division, Rolf Bollmann for the Media Zurich Division and Christoph Tonini for the Media Switzerland Division in addition to the Digital Division. All production services and print activeties will be grouped together under the Publishing Services Division. Andreas Schaffner will remain responsible for the Publishing Services Division. The Finances Division combines under the Management of Sandro Macciacchini all financial, real estate and IT services of the company. With the Chairman of the Management Board, Martin Kall, the Management Board of Tamedia now comprises seven members.

Division

Manager

Media

(Selection)

Espace Media

Ueli Eckstein

BZ Berner Zeitung, Der Bund,
Newsnetz Bern, TeleBärn, Capital FM

Edipresse Switzerland

Serge Reymond

24 heures, 24heures.ch, Femina,
Le Matin, Le Matin Dimanche, lematin.ch, Tribune de Genève, tdg.ch, Participations

Media Zurich

Rolf Bollmann

Tages-Anzeiger, Newsnetz, Radio 24, TeleZüri, Zurich Regional Newspapers

Media Switzerland

Christoph Tonini

20 Minuten, 20 Minuten Online, SonntagsZeitung, Magazines

Digital

Christoph Tonini

car4you.ch, homegate.ch, jobup.ch, search.ch, swissfriends.ch, Participations

Publishing Services

Andreas Schaffner

Print Centers, Production Services

Finances

Sandro Macciacchini

Finances, IT, Real estate

Edipresse Switzerland and Tamedia standardise IT and bring it in house
The entire IT of the new business will be standardised step by step and handled completely in house as from 2013. The new IT will, based on the existing competences in Berne and Lausanne, be close to its internal customers with decentralised teams in Berne, Lausanne and Zurich. Tamedia had in 2004 outsourced the IT in Zurich to Swisscom IT Services. The respective contract expires at the end of 2012. 20 new jobs will be created through the standardisation of the IT and bringing it in house.

Segment reporting structured by markets
With the publication of the half-year results on 31 August 2011, Tamedia will introduce segment reporting structured by markets. The business segment Print Regional covers all regional newspapers and gazettes. The business segment Print National covers all newspapers and magazines with a wide distribution. All areas formerly included in the business segment Publishing Services will in future be included in the business segment Print Regional. The inclusion of these areas, which serve almost exclusively internal customers, in the business segment Print Regional, and the disclosure of the segments Print National and Digital, increases the comparability with other media businesses. The online media and radio and TV comprise together the business segment Digital, which will gain further in importance in the coming years.

Business segments

Media (selection)

Print Regional

24 heures, BZ Berner Zeitung, Der Bund, Tages-Anzeiger, Tribune de Genève, Zürcher Unterländer, Zürichsee-Zeitung, Anzeiger,
Reader-market Services, Print Centers

Print National

20 Minuten, 20 Minuten Friday, 20 minutes, Annabelle, Automobil Revue, Das Magazin, Femina, Finanz und Wirtschaft, L'essentiel,
Le Matin, Le Matin Dimanche, Schweizer Bauer, Schweizer Familie, SonntagsZeitung, Télé top matin 

Digital

20 Minuten Online, car4you.ch, homegate.ch, jobup.ch, lessentiel.lu, Newsnetz, search.ch, Radio and TV activities

At the time of the publication of the half-year results for 2011, Tamedia will also present the results for 2010 retroactively restated according to the new segment reporting.