Gruner + Jahr AG & CoDruck- und VerlagshausHamburg

The G+J Publications at a Glance

Homepage: www.guj.deGruner + Jahr AG & CoDruck- und Verlagshaus Hamburg

Gruner + Jahr AG & Co Corporate Communications + Postal address:Druck- und Verlagshaus Public Affairs 20444 HamburgHamburg

Visitors: Telephone (040) 37 03-31 14Am Baumwall 11 Telefax (040) 37 03-56 1720459 Hamburg E-Mail: oeffentlichkeitsarbeit@guj.de

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Ann

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2000 /2001 Annual Report

Vision + Mission

To be the leading journalistic home for the world´s most

fascinating magazines and newspapers.

To create original, reliable and independent content of the

highest quality. Our magazines and newspapers are distin-

guished by their outstanding journalistic competence, and

are enhanced by integrated online services. Modern prin-

ting companies play an integral role within our publishing

activities.

We are committed to

– journalistic integrity

– quality for our readers

– attractive target groups and optimal platforms for our

advertising clientele

– entrepreneurial spirit

– developing and promoting journalistic

and entrepreneurial talents

– a challenging corporate culture

– market leadership in core segments

– high profitability and long-term value creation

Gruner + Jahr in Figures 4

Editorial 5

Magazines Germany 8

Magazines International 12

Newspapers 16

Printing Facilities 20

Multimedia 22

Central Services 26

Environmental Awareness 28

Culture and Society 30

Annual Financial Statement 32

Financial Situation 33

World Balance Sheet 34

World Profit and Loss Account 35

Attachment to the World Financial Statement 36

Members of the Supervisory Board 38

Members of the Executive Board 39

Most Important Holdings 40

Gruner + Jahr Addresses 41

Chronicle 44

3 G+J 2000 / 2001 Annual Report

4

Magazines – Newspapers – Printing Facilities

Gruner + Jahr in Figures

Dear Readers,

In many respects, the 2000/2001 businessyear just completed was an exceptional yearfor Gruner + Jahr. Three outstanding factorshave shaped the development of our busi-ness: The end of the Internet boom with theaccompanying disenchantment on the stockexchanges, the cooling of the economy withthe resulting weaknesses in the advertisingmarkets, and record investments in the fu-ture of Gruner + Jahr, especially in Germanyand the USA. We have prepared our financialstatement for the period from June to Julyfor the last time. With the year 2002, we willadapt our business year to the calendar year.

These decisive developments took placetogether with a change at the top of the com-pany: On November 1, I took over the Chair-manship of the Executive Board from GerdSchulte-Hillen, who was appointed Chairmanof the Supervisory Board of Gruner + Jahr aswell as Bertelsmann AG. At the same time,Angelika Jahr became Journalistic Director,while John Jahr left the Executive Board after28 years because of age.

With Achim Twardy, we have had a newNewspaper Director since August 2001.

There was also a drastic change in the adver-tisement climate at the turn of the year2000/2001. No one had expected a change ofthis order of magnitude. The special effectsof the year 2000 on marketing and advertis-ing, such as the numerous IPOs and imagecampaigns of Internet start-ups, the takeoverstruggles like that between D2 and Voda-phone, accompanied by their advertisingbattles, but also such advertising-intensivemajor events like EXPO 2000 were a thing ofthe past.

As the market leader in Germany and asEurope’s largest publisher of periodicals, G+Jprofited especially in the 1999/2000 businessyear from the growth in the advertisementmarkets and the renaissance of printedadvertising. Like all other competitors in theprint market, Gruner + Jahr had to overcomea massive slump in the advertising businessat the beginning of 2001. In the course of theyear 2001, it became increasingly apparentthat this would not be a short-term downturn.

Governments in Germany, the EU memberstates and the United States repeatedlyrevised their growth forecasts downward.The uncertainties on the further develop-ment of the economy immediately influ-enced the planning and the mood of theadvertising industry. While the negativeeffects were first noticeable in the USA andGermany, they also reached France, the thirdcore country of G+J activities, in fall 2001.

Under such difficult economic conditions,Gruner + Jahr made good use of itsstrengths. Well-known, respected periodi-cals with stable and attractive readershipsare also a guarantee for success in a reces-sionary scenario. The value of the consistentmaintenance of our print brands was seenespecially in the 2000/2001 business year.Most G+J magazines are market segmentleaders with all of the associated advantages.Working closely with the powerful brands ofthe print world, the multimedia productsfrom G+J also have the best opportunities foracceptance on the market against less well-known names. Even as market leaders, wehave had to adjust to the new conditions.

Editorial5

“No other periodical publisher in the world is as internation-

ally oriented as Gruner + Jahr. We inform, entertain and

enthuse our readers in 14 countries with over 100 magazines

and newspapers. Record investments in the 2000/2001

business year will secure the success of Gruner + Jahr in

the most important print markets of the world.”

Dr. Bernd Kundrun, President and CEO of Gruner + Jahr AG

With the help of the “CAP – Cost andProcesses” program, organizational struc-tures and procedures have been improvedand costs have been reviewed since spring2001. At G+J, we have accepted the fact thatwe will have to expect deteriorating con-ditions for advertisements far into the year2002 and have necessarily had to adapt ourcost structures to the lower level of revenue.Even the difficult economic situation did notdeter us in the past business year from ad-hering to our plan for investment in the futureof the company, well above average with avalue of Euro 1.306 billion. In comparisonwith the previous year, this is a five-fold in-crease. Investments were concentrated onthe modernization of our printing facilities,

the launch of new magazines and the main-tenance of existing magazines in WesternEurope and Germany, the acquisition of thebusiness magazines FAST COMPANY andINC in the USA as well as the relaunch of allexisting American magazines - with theexception of PARENTS. In the newspaperbusiness, G+J invested especially in thestrengthening of its market positions inEastern Europe and the further expansion ofFINANCIAL TIMES DEUTSCHLAND.

These exceptionally high investments willstrengthen our market positions in our coremarkets of Germany / Austria, France and theUSA: In Germany, G+J maintained its posi-tion as advertisement market leader

among the mass-market periodicals; inFrance, Prisma Presseeasily defended posi-tion No. 2 among themagazine publishers;in the USA, G+J USAPublishing now ranksamong the five largestmagazine publishers.Advertisement and circulation figures indi-cate that we will con-tinue to improve our market positionwith almost all magazines. The G+J sales rev-enues rose from Euro2.934 billion by Euro 108 million toEuro 3.042 billion. Theresult is a growth of

3.7 percent in sales. The turnover from jointventures to the value of Euro 114 million isnot included in these external turnover revenues. Including the sales revenues fromjoint ventures, the total external sales revenues amount to Euro 3.156 billion.

No other publisher of magazines and news-papers in the world is as internationallyoriented as G+J with over 100 magazinesand newspapers in 14 countries on three con-tinents. The foreign share of sales rose from58 percent in the 1999/2000 business year to62 percent in the 2000/2001 business year.With GALA in Poland and Russia, CAPITAL inSpain and NATIONAL GEOGRAPHIC in theNetherlands and soon in Hungary, successfulmagazine brands have been internationalizedfurther.

The News Publishing Group, of which Gruner + Jahr is the majority shareholder, isthe undisputed market leader on the Austrianmagazine market. After the merger with theKurier Group and the sensational launch ofthe new women’s magazine WOMAN inNovember 2001, the News Group publishesthe 14 leading magazines in Austria – includ-ing the NEWS, PROFIL and FORMAT newsmagazines, the TV-MEDIA television maga-zine and the E-MEDIA Internet magazine.

G+J is also continuing to grow in Germany.With the parallel introduction of the LIVINGAT HOME magazine and the online platformof the same name in fall 2000, Gruner + Jahrsuccessfully established the first print-onlinebrand in the magazine market after theFINANCIAL TIMES DEUTSCHLAND.

With a circulation of over 220,000 copies,LIVING AT HOME clearly exceeded our already very high expectations. TheBRIGITTE WOMAN special edition appearsregularly four times a year after its great success (paid circulation over 150,000). The GEO family has also grown again: Since January 2001, the GEO Magazine forChildren, GEOLINO, has appeared everymonth with a peak circulation of over 170,000most recently.

As a consequence of this expansion, thenumber of employees rose by 816 or 6.7 per-cent from 12,130 to 12,946. The relativelyhigh increase in personnel costs by 12.4 per-cent to Euro 880 million is connected primar-ily with acquisitions in the USA. The extraordinary high investments of the2000/2001 business year have affected theEBITA. In the business year just completed,G+J earned an EBITA of Euro 260 million. In the 1999/2000 business year, we were ableto earn significantly more satisfying profits ofEuro 451 million. The decrease of Euro 191million has essentially the following causes:Our multimedia activities incurred expendi-tures of Euro 97 million, which affected theresults. On the other hand, these activities

still made positive con-tributions to earningsto the amount of Euro39 million in the1999/2000 businessyear, partly as theresult of the IPO ofLycos Europe. Thisresulted in a netdecrease of Euro 136 million in profits incomparison with theprevious year. Theworldwide increasesin paper prices had anegative effect of Euro15 million on theEBITA. The decreasein the advertisementbusiness because ofthe economic situa-tion in Europe and inthe USA accounted for

a further decline of Euro 47 million in profits.In addition, numerous publishing invest-ments were made. Nevertheless, G+J wasable to earn profits on sales of 11.7 percent inits core businesses. Taking account of theone-off expenditures for the multimediaarea, the result is total profits on sales of 8.5 percent. The surplus for the year amount-ed to Euro 40 million. The cash flow, whichbest reflects the earning power and thefinancial strength of a company, amounted toEuro 277 million.

The top priority of Gruner + Jahr is to consolidate and consistently develop ourmarket leadership in our most importantsegments. In our main markets ofGermany/Austria, France and the USA wewill develop new segments in the printmarket. Wherever promising opportunitiesappear in the future, we will continue topursue them actively. In the future, Gruner + Jahr will stand for the highestquality content, printing and service. Gruner + Jahr wants to be the leading jour-nalistic homeland of fascinating magazinesand newspapers – we are on the right track.

Yours sincerely

Bernd Kundrun

Editorial6 – 7

Magazines Germany

8 – 9

“The magazine markets have been characterized for years by faster and faster

change. In this environment, continuous brand maintenance is just as

important as the courage for innovative publishing. Our credo is:

The highest journalistic quality for our readers.”

Rolf Wickmann, President, German Magazine Division

An example of the journalistic originality and quality at G+J: the GEO report “The long way to mankind”.

Reconstructions of human predecessors were prepared and set in scenes for photo shootings.

Magazines Germany

In the German magazine publishing busi-ness, Gruner + Jahr successfully maintainedits very good market position in an extremelydifficult competitive environment. After therecord growth in sales of about 10 percent inthe 1999/2000 boom business year, the German Magazine Division reported stabledevelopment in the 2000/2001 business yearwith sales of about Euro 800 million (exclud-ing Corporate Trade Division, but includingthe joint ventures NATIONAL GEOGRAPHICand MARIE CLAIRE, unconsolidated). Be-cause of the weakness of the advertisementmarket in the second half of the businessyear and extensive investments, the operat-ing profit was less than the results of the pre-vious year, but nevertheless still remained inthe same order of magnitude as the year be-fore. In a comparison over several years, themagazine portfolio indicates steady growth.G+J clearly remains the market leader in theadvertisement market and has been able toattract market share in continuously declin-ing sales markets. Investments were made inthe further development of journalistic qual-ity but also into new magazines and market-ing activities to secure and expand marketsas well as online versions of magazines.

Further development and

expansion of core magazines

The strong, established G+J magazinebrands STERN, BRIGITTE, CAPITAL, GEO,SCHÖNER WOHNEN, ESSEN & TRINKEN,P.M. and ELTERN – market leaders for yearsin their segments – were developed further inthe past business year and were also able tomaintain or improve their positions.

STERN expanded its position as the currentGerman weekly magazine with the widestreadership with an increase of 400,000readers (Media Analysis II/01). The structureof the magazine was modernized and givesthe editors greater freedom for the arrange-ment and positioning of themes. The individ-ual products in the brand family, such as thespecial issues, stern.de and STERN TV aswell were linked more closely with eachother in appearance as well as contents.

With a stable circulation, BRIGITTE almostmaintained the same record level of adver-tisement revenue as the previous year andgained further market share in the highlycompetitive segment of classical women’smagazines. BRIGITTE remains the unchal-lenged market leader amongst women’smagazines appearing biweekly.

Through its conversion to a biweekly publi-cation at the beginning of 2000, CAPITALwas able to expand its turnover substantially.Nevertheless, it has suffered increasingly inthe advertising and sales markets under thenegative developments in the economy andon the stock market since the beginning of2001, like the entire business press branch.With the BIZZ, BÖRSE ONLINE, CAPITALand IMPULSE magazines, G+J covers thebusiness press segment successfully withinnovative magazine concepts in a strongmarket position.

GEO celebrated its 25th anniversary in 2001and continues to hold a special positive pos-ition with a paid circulation of about 500,000copies and a readership of 2.6 million. Theentire GEO family with the GEO SAISON,

In the GEO editorial office:

Photo editors busy with the

selection of photos for the

next issue.

The stories in STERN are

brought alive through

expressive picture language.

This makes the coordination

of the layout a key task for

the editors.

▲

▲

GEO SPECIAL, GEO WISSEN, GEOEPOCHE and GEOLINO magazines contin-ued to appear in the best condition after thesuccessful introduction of NATIONAL GEO-GRAPHIC to the market. The attractivenessof the GEO brand also permitted theestablishment and development of asuccessful merchandising business withbooks, calendars, etc. The GEO family,NATIONAL GEOGRAPHIC, the P.M. Groupand ART make G+J the predominant marketleader in the attractive segment of knowl-edge magazines – a segment which is dis-tinguished by readers with above-averageeducation and income.

TV TODAY belongs in the league of premiumTV magazines. With a paid circulation of onemillion copies, it continues to maintain itsposition in the market for program maga-zines, which has been brought out of equi-librium for the past two years through con-tinuous dumping by two competitors and ex-hibits substantial erosion in the circulation ofmany magazines.

Successful expansion with

young magazines

The above-average increase in investmentsfor market launches and the unfavorableeconomic developments as well as theaggressive and, in the meantime, long-termdumping and introductory prices in thecompetitive environment have increased therisk for new magazine launches considerably.Nevertheless, innovative concepts have goodchances:

G+J was able to launch the LIVING AT HOMEmagazine successfully in fall 2000. With a

paid circulation of over 220,000 copies andvery good development in the advertisementbusiness, this magazine is performing abovebudget. The LIVING AT HOME online plat-form integrates online offers from theSCHÖNER WOHNEN, ESSEN & TRINKEN,HÄUSER and FLORA magazines.

In fall 1999, NATIONAL GEOGRAPHIC waslaunched simultaneously in three countries.With a paid circulation of over 290,000copies, the advertisement business hasbeen able to expand further in Germany.

With its GALA magazine, G+J successfullyoccupies the growth market of the upper-class people magazines. With a paid circu-lation of over 340,000 copies most recently,GALA is continuing its positive circulationtrend. The large format and elegant appear-ance position GALA as a premium magazine.In the advertisement market, GALA reporteda growth of 20 percent against the generalmarket trend.

With sales of over 170,000 copies mostrecently, GEOLINO was established suc-cessfully as a new monthly magazine in theGEO family at the beginning of the year 2001.

BRIGITTE WOMEN, as a further new lineextension of BRIGITTE, achieved an econ-omic circulation of over 150,000 copies soldfour times a year.

Further stable business in the

Corporate Trade Division

On the whole, the three sales companiesDPV, IPV and BPV were able to maintain theirsatisfactory earnings levels of previous years

in a difficult sales environment with slightlydeclining revenues. In the business year justcompleted, the sales of the German Magazine Division and the Corporate TradeDivision amounted to Euro 936 million intotal.

Outlook: Expansion of the core business

As before, the objective of the German Magazine Division is to secure and expand itsexisting market segment leadership consis-tently in the quality magazine area. Furtherline extensions of the strong G+J brands willalso be developed in the future. In addition,new launches in the core and adjacent seg-ments will expand our position. The continu-ing high investments will go primarily into theeditorial quality of our pages and appropriatemarketing activities. The online activities ofthe G+J magazines will be oriented morestrongly to the print brands in cooperationwith the Multimedia Division.

In advertisement marketing, consistentcustomer orientation will be strengthenedwith cross-magazine key account support.The G+J market research will support thesales activities of the advertisement areawith innovative studies in the field of adver-tising effectiveness research.

In the sales market, the focus will continueon individual sales, but also on the expansionof direct customer marketing. The GermanMagazine Division already earns almost halfof its sales revenues from its subscriptionbusiness.

10 – 11 Magazines Germany

Magazines International

12 – 13

“With the introduction of GALA in Poland and Russia, CAPITAL in Spain,

and NATIONAL GEOGRAPHIC in the Netherlands, the internationalization of

successful G+J magazine concepts and brands has advanced further.

Furthermore, we took a large step forward in the USA: G+J is now No. 5

on the largest magazine market of the world.”

Axel Ganz, President, International Magazine Division

The editors of the FAST COMPANY American business magazine place people and their ideas in the foreground of their reporting.

Magazines International

The International Magazine Division startedthe new millennium with far-reachingstrategic decisions and uninterrupteddynamism. In France, Prisma Presse main-tained second position amongst the maga-zine publishers. With the purchase of the INCand FAST COMPANY business magazines inthe USA, an investment campaign began.In the largest magazine market of the world,Gruner + Jahr has the medium-term objec-tive of growing beyond the No. 5 position ithas reached amongst the largest magazinepublishers.

On the whole, the International Magazine Division raised its turnover by about six per-cent to Euro 1.06 billion in spite of the sale ofits activities in England. The operating resultsfell below those of the previous year, which isto be attributed to high investments in theUSA and start-up losses for recentlylaunched European magazines. The corebusiness in Europe again earned excellent results and profits on sales.

USA: On the way into the top group

Gruner + Jahr took a decisive strategic stepwith the acquisitions of INC and FAST COM-PANY. Gruner + Jahr now has a significantcompetitive position in the third largest –based on advertisement sales – segment inthe American magazine market. The activi-ties of both business magazines weregrouped together in the Business InnovatorGroup (BIG) founded in January 2001 inBoston.

After the management change at the begin-ning of the business year, the developmentsin the USA were determined by a compre-hensive action program for the moderniza-tion and repositioning of the existing maga-zines. The economic downturn which hascontinued since January 2001 has hadserious effects on the advertising industry ingeneral and thereby on the advertisementrevenues of G+J magazines as well. Struc-tural problems through the concentration ofthe retail trade, stagnating to declining indi-vidual sales, rising advertising costs for sub-scribers and higher shipping costs fromsharp increases of postage rates continued in the sales market for magazine publishers.

Gruner + Jahr undertook a radical step withrespect to McCALL’s, the oldest women’smagazine in America. As the least read maga-zine in the segment of the “Seven Sisters,”it did not have a promising economic outlookalthough it had been improved continuouslyin recent years. With the popular U.S. Talk-master Rosie O’Donnell, the magazine wasconverted into a modern women’s magazinewith a personality character under the nameof ROSIE. This step was very positively re-ceived by the market, especially in retailsales, where it was possible to double salesin comparison with McCALL’s.

After an editorial reworking, FAMILY CIRCLEhas appeared in a larger format since the Mayissue. Further basic modernization also tookplace with the CHILD, FITNESS,HOMESTYLEand YM magazines. These steps, which wereimplemented in the first half of 2001, ledquickly to success, which was also reflectedin higher advertisement market shares.

In spite of the sharp competitive situation,PARENTS was finally once again a solidcontributor to the business. This magazineagain maintained its market leadership withcirculation and advertisement revenuesamong parents’ magazines.

France: A stable pearl in the

Gruner + Jahr portfolio

Prisma Presse maintained second placeamongst the French magazine publishers,with an unchanged high rate of return onsales which was above that of its most impor-tant competitors. In a market which declinedagain, sales remained stable, although thenet advertisement revenue increased by fivepercent.

The weekly television magazine TÉLÉLOISIRS was – as it was the year before – a positive highlight. It regularly crosses thecirculation threshold of two million copiesand just barely reached it again on theaverage in the business year. The develop-ment of the two high circulation PRIMA andFEMME ACTUELLE women’s magazines,which suffered declining sales figuresbecause of the market, was more difficult.Editorial adjustments should lead to a changein the trend in the new business year.CAPITAL and GALA, magazines dealing withthe subject of food and eating, and VSD werestable.

Magazines International14 – 15

The new launches in the past two years havedeveloped satisfactorily: NATIONAL GEO-GRAPHIC achieved a circulation of 250,000copies and is thereby one of the mostsuccessful new launches in recent years inFrance. WEB MAGAZINE continues todominate the newly-created segment of online magazines and, in spite of difficultmarket conditions, has achieved a stablecirculation of over 120,000 copies. FEMMEmagazine, taken over in the summer of 1999,was repositioned to become a modern, high quality women’s magazine, which wasrewarded by the market with a growth insales of over 50 percent.

Spain: A year of anniversaries

Two anniversaries were celebrated in Spain inthe business year just completed: MUY IN-TERESANTE, the best-selling and most-readmonthly magazine in Spain, has now ap-peared for 20 years; COSMOPOLITAN cele-brated its tenth year of existence. Numerousinternational prominent figures appeared atthe celebrations. Economically, this wasanother outstanding year which benefitedfrom continued good advertising conditions,even if signs of the cooldown in the advertis-ing climate were also recognizable in Spain.The monthly business magazine CAPITAL,which was launched in the fall of 2000, waswell received by readers – as well as by theadvertising market.

Italy: Strengthening of market

segment leadership

The Gruner + Jahr/Mondadori joint venturealso brought the popular technology maga-zine JACK onto the market in the fall of 2000 to strengthen its strong marketposition in the segment of popular scienceand technology-oriented magazines, whichcontinues to be led unchallenged by FOCUS.With a paid circulation of 130,000 copies onthe average in this business year, the launchof JACK was successful. It spite of hardercompetition, the circulation of FOCUS ex-hibited slight growth to reach an average cir-culation of 780,000 copies in the 2000/2001business year.

Poland: Forward strategy with

new management

The Polish market is characterized by declin-ing sales and the very aggressive marketingpractices of some competitors who artificial-ly support the sales of their magazines withgimmicks. In view of these conditions,Gruner + Jahr had a satisfactory year in whichCLAUDIA was again the mainstay of thebusiness. For years, this magazine has beenthe most successful monthly magazine inPoland by far. With HALO, there was a maga-zine in Poland without satisfactory prospectsfor the future. At the beginning of the busi-ness year, this magazine was replaced by aPolish adaptation of GALA. The first fourissues of the new GALA raised circulationfrom 255,000 to 300,000 copies sold, so thepaid circulation of this people magazine ismore than double in comparison with HALO.

Russia: Planned expansion of the

portfolio of magazines

Favored by the stabilization of the politicaland economic situation, Gruner + Jahr hasconcluded a very successful business year inRussia: It was possible to raise the revenuesof our only magazine GEO by about 50 per-cent. With this background, developmentwork was begun on a second high qualitymagazine and has been completed in themeantime: GALA has also entertainedRussian readers since the fall of 2001.

Holland and China:

Engagement in new markets

With the very successful start of NATIONALGEOGRAPHIC in Holland and the opening ofour own representation in Shanghai, Gruner + Jahr has pursued its objective ofbeing represented in promising markets andsystematically exploiting its potential forgrowth.

Outlook: Optimization as the basis for

further expansion

After this year of long-term strategicdecisions concentrating on the English-language publishing activities on the U.S. market and the massive investments in theimprovement of our market position there aswell as the launch of several new magazinesin Europe, attention will be paid to the opti-mization of the existing business in thecoming business year. This will be done withthe objective of making G+J International fitfor a new phase of expansion in its changingmarkets.

FAST COMPANY has set

the standards on the

American magazine

market. Founded in

1996 and taken over by

G+J at the end of 2000,

this business magazine

attracts readership

through a new, young

view of the economy

and its main players.

Newspapers

16 – 17 Newspapers

“Over one million readers throughout Saxony depend on the

SÄCHSISCHE ZEITUNG or the MORGENPOST SACHSEN daily for their

information. The SÄCHSISCHE ZEITUNG is the only regional newspaper in

former East Germany which ranks amongst the 10 most-frequently quoted

newspapers in Germany. This demonstrates its first class journalistic

competence – not only with local items.”Achim Twardy, President, Newspaper Division

The SÄCHSISCHE ZEITUNG is the daily companion of many Dresdners.

For the Newspaper Division, the 2000/2001business year was characterized by the ex-pansion of the market positions in EasternEurope and investments in the further devel-opment of the FINANCIAL TIMESDEUTSCHLAND, which was launched inFebruary 2000. The BERLINER ZEITUNGclearly expanded its leadership in the readermarket as the largest subscription news-paper of the capital. Above all, the weak adver-tising market was responsible for the devel-opment of the results of the NewspaperDivision. Substantial price increases of themost important raw material, paper, alsoburdened the operating results. The News-paper Division reacted to it with significantcost reductions without restricting the editor-ial quality of the newspapers thereby.

FINANCIAL TIMES DEUTSCHLAND

successfully established on the market

On February 21, 2001 the FINANCIAL TIMESDEUTSCHLAND celebrated its first anniver-sary. With circulation figures rising fromquarter to quarter – especially in the subscrip-tion area – and high acceptance among an attractive readership, the FTD, a joint ventureof G+J and Pearson, was establishedsuccessfully as an inter-regional qualitynewspaper in the business year just complet-ed. According to reader analyses of decision-makers in 2001 and AWA [Allensbach marketand advertiser analysis] in 2001, the FTD pro-duced very good results in the target group ofyoung, high-earning decision makers in toppositions.

The “One Brand – All Media” concept wasimplemented and developed consistently.The online edition of the FTD has developedto become one of the most successful finan-cial services websites in Germany. It receivedseveral awards in the communications andmedia branches because of the services itoffers. As a financial services website,FTD.de makes information available on allmobile terminal devices – from Palm, throughWAP and PDA to the Rocket eBook. Further-more, contents from the FINANCIAL TIMESDEUTSCHLAND editorial brands are alsomade available through the Print on Demand,SMS and Radio as well as Book channels.

Continuing heavy competitive pressure

in the Berlin newspaper market

In the reader market, the BERLINERZEITUNG was able to expand its leadershipas the largest subscription magazine of thecapital although the Berlin newspaper mar-ket continues to be characterized by intensecompetition. According to Media Analysis2001, the BERLINER ZEITUNG achieved thelargest increase in readership of all Berlinnewspapers. It reached over 500,000readers, 31,000 more than in the previousyear. The BERLINER ZEITUNG holds thirdplace on the list of the most quoted dailynewspapers in Germany, ahead of the“Welt” and the “Süddeutsche Zeitung”. In spite of difficult business conditions –especially in the capital city – connected withrising paper costs and the weak advertisingmarket, the BERLINER ZEITUNG was able to improve its operating results in thebusiness year just completed. The level of the results is nevertheless not yet satisfactory.

The BERLINER KURIER tabloid celebrated itstenth anniversary on October 31, 2000. Withfirm roots in the East, this newspapermaintained its position as the second largestnewsstand paper in Berlin. The editorialrange was extended with new topicalenclosures in the past business year. Theywere very well received by the readers.

Although the BERLINER ABENDBLATT, oneof the largest advertising newspapers inGermany, enjoys outstanding acceptance bythe readers and the advertising market inBerlin, it was especially affected by the weakBerlin retail trade and the poor conditions onthe advertising market.

TIP was able to earn good results, similar tothose of the previous year. In spite of variouscompeting online and offline services, TIPmaintains its position as the leading citymagazine in Berlin and the largest city maga-zine in Germany with a paid circulation ofabout 73,000 copies. A new field of businesswas captured with TIP Edition, a high qualitybrand of Berlin Guides on such subjects asgastronomy, shopping and tourism.

The Bankgesellschaft Berlin acquired a 50 percent holding in G+J Berlin OnlineGmbH in the business year just completed.The editorial contents and communityservices of the Gruner + Jahr publications inBerlin and the financial services of Bank-gesellschaft Berlin provide the bestconditions to develop the market-leading cityportal of Berlin further and to extend it with aregional e-Commerce component.

18 – 19 Newspapers

SÄCHSISCHE ZEITUNG awarded the

Konrad Adenauer Prize for local

journalism

The SÄCHSISCHE ZEITUNG earned excep-tionally satisfying operating results. Itsregional publishing spinoffs have developedwell economically and realized their first inde-pendent products. The continuing loss ofcirculation by the SÄCHSISCHE ZEITUNGfollowed the trend of comparable subscrip-tion newspapers in former East Germany.With a paid circulation of about 340,000copies, it managed to maintain its position asone of the largest regional newspapers inGermany.

For its first-class local competence, theSÄCHSISCHE ZEITUNG received an awardfrom the Konrad Adenauer Foundation: Thesecond place prize for local journalism.According to analyses by “Medien Tenor,”the SÄCHSISCHE ZEITUNG is also the onlyregional newspaper from former EastGermany to rank among the 10 mostquotednewspapers in Germany.

In spite of the stagnating development in thenewsstand segment, the MORGENPOSTSACHSEN also earned a positive result thisyear.

BREMER BRANCHEN launched

together with online website

In the business year just completed, theHamburger Branchen was distributed free forthe second time to over one million privatehouseholds and companies in Hamburg. The quality of the data and the delivery wereimproved substantially, as was the layout.Furthermore, G+J Media Sales extended its

business activities to Bremen. The BremerBranchen 2001/2002 appeared with a circu-lation of 310,000 copies and was accompa-nied by a user-friendly online website.

Strategic expansion of the

East European business

Together with various partners, Gruner +Jahr publishes the newspaper with the highest circulation in Rumania, EVENI-MENTUL ZILEI, and the largest subscriptionnewspaper in Hungary, NÉPSZABADSÁG, aswell as the leading newspaper in Slovakia,NOVY CAS. Under difficult conditions, allEast European newspapers earned positive,sometimes extraordinarily good results.

The publishing engagement of Gruner + Jahrin Eastern Europe was extended further inthe past business year. In November 2000,G+J acquired 49 percent of the YugoslavianBlic Publishing House, which publishes BLIC,the largest newsstand paper in Yugoslavia,and others. As a politically independent dailynewspaper, BLIC contributed significantly tothe democratic revolution in Serbia. With itsengagement, G+J wants to make a contribu-tion to strengthening the free press inYugoslavia and to promote the democraticdevelopment of the country. In addition to thedaily newspaper, the Blic Publishing House’sbroad product range comprises the weeklymagazine BLIC NEWS, the free city maga-zine VODIC, the puzzle booklet ZABAVA aswell as a pocketbook edition.

Through the introduction of the weeklygeneral interest magazine CAS, the umbrellabrand NOVY CAS was developed promisinglyin Slovakia. Through additional presence inthe up-and-coming magazine segment, thereadership and advertisement market can bebetter exploited.

In March 2001, the most modern offset print-ing facility for newspapers in Rumania wasopened in a ceremony attended by thePresident of the country, Ion Iliescu, and thePrime Minister of Rumania, Adrian Nastase.This new printing facility of the ExpresPublishing House has produced an importantjump in the quality of EVENIMENTUL ZILEIas well as the free newspaper METROBUS,which also belongs to it.

Outlook: Further development of the

established brands

In the coming business year, the News-paper Division will pursue the developmentof its established brands intensively. Afterthe successful introductory phase of theFINANCIAL TIMES DEUTSCHLAND, marketpenetration and the development of thebrand will be in the foreground. The regionalnewspapers will be strengthened throughcontinuous, cautious improvement of thepage and marketing concepts. Further effortswill be made to expand our presence inEastern Europe. In spite of unchanged poorconditions in the market and persistenteconomic efforts on the advertising market,the Newspaper Division is pursuing itsobjective of continuous improvement of the results.

The local editors in

Meißen at work on the

current edition.

Since 2000, the

SÄCHSISCHE ZEITUNG

has awarded the German

Caricature Prize. The

selection of the best

work is not always easy,

but it is very enjoyable

for the jury.

▲

▲

Printing facilities20 – 21

In spite of substantial price reductions, thePrinting Division exceeded its planned results, which were nevertheless below the results of the previous year. The unex-pectedly sharp economic downturn es-pecially in the USA led to declining revenues,which were nevertheless compensated extensively through good cost managementand a renewed increase of the volumethroughput. The investment program whichbegan in the 1999/2000 business year with avalue of Euro 500 million for the entire printing area will be continued further untilthe end of the 2003 business year. All plantswill profit from these investments in the formof expansions and modernization.

Gruner Druck in Itzehoe:

Reinvestment starting to show effects

The printing facility in Itzehoe was affectedby the price reductions to a special extent. Inaddition, the general economic weaknesshad a negative effect on the size and num-bers of the periodicals produced. Through in-creased sales efforts, it was neverthelesspossible to raise the print volume in compari-son with the previous year. The cost reduc-tions agreed upon as a part of the reinvest-

ment program as well as scheduled Sundaywork showed initial positive effects. A newhall was completed for gatherer-stitcherdrums.

Dresden Printing Center:

Rise in utilization improves the results

The utilization was raised again by almost

10 percent to 92 percent in the illustration

printing facility of the Dresden Printing

Center. In the newspaper area, production

remained at the level of the previous year. In

total, turnover rose by 11 percent and it was

possible to improve the operating results by

32 percent after an increase of 43 percent in

the previous year.

Brown Printing Company in the USA:

In spite of the economic downturn,

results only moderately down

The unexpectedly sharp economic downturnin the United States led to decreases in sizefor almost all periodicals and thereby to re-ductions in the utilization of all three plants(East Greenville, Waseca, Woodstock). On the whole, the operating results declinedonly moderately in spite of this.

Outlook:

Continuation of the investment program

In June 2001, Brown Printing concluded an11-year contract with Time Inc. In addition toa contract which has existed since 1984,Brown Printing now performs the printing fora competing company. This new contract willsecure approximately 30 percent of the pre-sent capacity of the plant in East Greenville.In Woodstock, the number of presses can beraised by two to seven.

In the Dresden Printing Center, preparationsare underway for the commissioning of sixrotary presses as planned in March 2002. In the coming business year, the rational-ization effects of the reinvestment programwill be felt to their full extent with the start-up of the new 3.64 m rotary press atGruner Druck.

On the whole, the consistent continuation ofour rationalization efforts for the further re-duction of unit costs will continue to be in theforeground in the next two business years. At the present time, development projectsare running in the fields of data management,form manufacturing and logistics.

Printing facilities“The Gruner + Jahr printing facilities in Germany and the USA stand for the highest

quality and the latest technical standards. Expansions and modernization of all six

plants guarantee that our printing facilities will be fit for the future.”

Dr. Edelbert Schwarze, President, Printing Division

Top: In the form manufacturing at Gruner Druck: An engraving operator performing quality control.

Bottom: In August 2001, the new rotary gravure press with a printing width of 3.64 meters was brought into operation in Itzehoe.

Multimedia

Multimedia22 - 23

“The gold-digging and money-spinning times are a thing of the past. In addition

to advertising, we are capturing new sources of income from paid and

premium content. The linking of printed media and online services under the

motto ’One Brand – Multi Media’ is at the center of our strategy.”

Stan Sugarman, Head of the Multimedia Division

In parallel with the LIVING AT HOME magazine, the Internet portal of the same name began operation.

It offers information relating to the home, garden, kitchen and hospitality, and also inspires cooking at home.

The G+J online activities were bundled to-gether on November 1, 2000 in the Multi-media Division. In addition to the responsibili-ty for the online marketing, the venture capi-tal business and such online brands astravelchannel.de, it is also responsible for the commercial and technical managementof the largest online providers of the Gruner + Jahr magazines.

The online market in Germany was character-ized in the previous business year by op-posing trends. The disillusionment of thegrowth rate and the potential of the onlinebusiness contrasted with continued rapidgrowth in the number of Internet users(growth of 59 percent to 26.8 million fromJune 2000 to June 2001, source: @facts).Online advertising was generally unaffectedby the collapse of the advertising volume inthe first six months of 2001, but continued ata low level (under one percent of the total ad-vertising market) and thereby remained farbelow the original forecasts and expecta-tions. In this difficult situation, Gruner + Jahrwas able to make above average gains with its strong brands. In June 2001, allGruner + Jahr online services had obtained areadership of 23.2 percent in comparisonwith 16.4 percent in July 2000. With 3.16 mil-lion unique visitors in June 2001, G+J is locat-ed ahead of the other publishing houses inthe German Internet.

The centerpiece of the Gruner + Jahr multi-media activities, which were reorganized at the beginning of 2001, comprises theonline services of the print brands and the “One Brand – Multi Media” strategy. In thisway, two objectives are pursued: The bene-

fits of the high level of brand awareness andthe reputation of the Gruner + Jahr print pub-lications on the Web as well as the resultingpotential for crossmedia marketing. For ex-ample, STERN offers advertisers the pos-sibility to communicate their products andmessages to specific target groups acrossalmost every form of media. Efforts are alsoconcentrated on the distribution of high qual-ity G+J contents on other technical platforms,such as mobile telephones and pocket com-puters (PDA). The first paid value-added ser-vices like the Flirt Service from YOUNG MISSand the SMS Reminder with TV TODAY wererealized in cooperation with the handy.demobile telephone portal (G+J participation58.45 percent).

Furthermore, concrete measures to createstandardized technical platforms – for exam-ple, in the area of content management –were initiated. In this way, the basis wasestablished for the exchange of contentsbetween the individual G+J online servicesas well as for their networking. In the courseof the review of the medium-term and long-term prospects of all Gruner + Jahr onlineactivities, the IT solutions providerKontorVisions was closed on July 11, 2001.

EMS: Online marketing at a high level

In addition to our own sites, G+J ElectronicMedia Service GmbH also markets websitesof external customers, such as the onlineservices of the Deutsche Post. The focus isplaced on topic-specific online advertising toqualitatively high value target groups withcustomized advertising forms from the but-ton, through the newsletter, to the microsite.With this strategy, EMS has been able to

maintain its position as an innovative andsuccessful online marketer in the businessyear just completed. From February 2001,EMS had to accept the painful step-by-stepdisappearance of its most popular searchmachine, Fireball, in its marketing. In thecourse of integration into the Lycos Europefamily, it will now be marketed by the latter. In June 2001, the websites marketed by EMSregistered 114 million page impressions. Corrected for Fireball, this results in anincrease of about 53 percent in comparisonwith the previous year (74 million).

Taking account of a stronger orientation tothe needs of advertising customers who seeonline advertising increasingly as an integralpart of their marketing strategy, online marketing and the classical advertisementbusiness were meshed more closely witheach other. In contrast to pure online media,G+J can make use of synergy effects between print media and online servicesthrough the bundling of crossmedia pack-ages.

Travelchannel

The travelchannel.de travel platform, which isspecialized in package tours and last minutebookings developed very satisfactorily. OttoFreizeit und Touristik GmbH took a 50 per-cent holding in July 2000. In mid-2001, thetravel platform was able to book weekly salesof over one million Deutsche Marks. Thenumber of page impressions doubled to overfive million from June 2000 to June 2001. Incomparison with independent German-lan-guage travel portals, travelchannel regularlyoccupied top positions.

A young team of travel

experts and Internet

specialists working at

travelchannel to provide

the user with current

information on new

trends and interesting

offers in the tourism

branch.

Multimedia24 – 25

Computer Channel

The Computer Channel was able to consoli-date its leading position as the central portalfor computer and Internet topics in theGerman-language Internet. Because of theweak development of the online advertisingmarket, the earnings situation remained un-satisfactory. To capture further sources of in-come, the site was extended in July 2001 toinclude a shopping area in addition to currentdaily news, hardware and software tests aswell as purchasing advice and databanks.Although the first tests with special servicesindicate the way to premium and paidcontent, the willingness of the user to pay for high quality contents remains very low. The possibilities of success for editorially-oriented pure online services thereforeremain closely dependent on the develop-ment of the online advertising market.

Business Channel

The Business Channel GmbH bundles theonline activities of the Gruner + Jahr busi-ness press and is also active in the ContentServices, Content Syndication and FinancialServices areas as well. The original approachof an Allfinanz portal for the Internetbusinesschannel.de, a joint venture betweenGruner + Jahr and the Direkt Anlage Bank(DAB), will not be pursued further because ofa lack of acceptance among the users.Gruner + Jahr will continue the BusinessChannel GmbH with a new strategic orienta-tion under the name of G+J Wirtschafts-presse Online GmbH. The finance portal willbe replaced by the individual brand sites ofthe G+J business press.

Multimedia Ventures GmbH

This venture business was influenced verystrongly in the business year just completedby the disenchantment on the stock ex-changes and the end of the Internet eu-phoria. With the takeover of the majorityownership of handy.de Vertriebs GmbH inMarch 2001, Multimedia Ventures GmbH(MMV), which belongs to the MultimediaDivision, was able to bind a company with ahigh potential for the future to G+J. With over 1.8 million registered users, handy.de is theleading mobile portal in Germany and devel-ops innovative concepts for M-Commerce,Mobile Entertainment and Mobile Services.The know-how and the broad customer baseof handy.de should benefit all Gruner + Jahronline services as well as other contentproviders.

There were no changes in the existing partici-pation in active-film.com AG (42.86 percent).G+J MMV holds a participation of 13.18 per-cent in FairAd. The minority holdings in DaumCommunications Corp. (11.18 percent) inKorea and Yam Technology (5 percent) inTaiwan developed positively. Because of theconcentration on the core business and thegeneral market situation, further expansionof the venture business is not planned for thetime being.

Outlook: Connection between print

and online under the motto “One Brand –

Multi Media”

The consolidation in the online market willalso persist in the second half of 2001 and inthe coming business year. While the numberof Internet users constantly moves upward,the online advertising market continues todevelop modestly. Depending on the study,the estimates assume online advertisingvalued between 175 million Euro (ZenithMedia) and 450 million Euro (Prognos) in theyear 2001 and between 255 million Euro(Zenith Media) and 650 million Euro(Prognos) in the year 2002. This correspondsto one to two percent of the total advertisingmarket. Crossmedia concepts will gain espe-cially in the distribution of advertisingrevenues through the increasing integrationof online advertising in the marketing mix.Furthermore, new sources of income mustbe developed for solid financing of online ser-vices through Paid and Premium Content andM-Commerce as well as Content Syndicationand Content Services.

Cost savings through the close linking ofprint and online services as well as thecreation of standardized technical platformsare indispensable for the medium-termprofitability of the multimedia business. A concentration process in favor of brandswhich are already known and established isevident amongst the various online services.Gruner + Jahr is outstandingly well-posi-tioned with the online publishers of itsprinted publications.

The Central Services Division comprises theInformation Technology, SAP Center, CentralInternal Administration and Accountingareas, while Personnel Development,Personnel Administration, Finance, FinancialStatements and Taxes, the Legal Depart-ment, Group Reporting/Controlling and PaperPurchasing operate as Staff Departments.The Central Services see themselves ascustomer-oriented service providers whomake an extensive range of services availablequickly, competently and economically forinternal and external customers.

Qualified personnel as the most impor-

tant resource in the publishing business

The most important capital of Gruner + Jahris its people. Personnel Development isinvesting increasingly in them with the intro-duction of annual employee assessmentinterviews and development programs in theform of nine-month to 12-month courses.Furthermore, the possibility is offered tocomplete a work-related doctorate or obtainan MBA under a Fellowship Program. In addition to the worldwide implementation ofthe free “PCs for all” campaign, a newemployee-financed old age pension modelwas introduced throughout Germany.

Under it, the employees can choose theirindividual security for their retirement fromdifferent components (for example, profit-sharing, vacation pay and Christmas bonusmoney).

Improved efficiency through the

use of new technologies

The range of information technology servicesoffered extends from the support of terminaldevices, through the development andintegration of software systems, to the pro-fessional operation of Unix and NT systems. A newly-founded department integratesnetwork and telephone technology (VoiceOver IP).

The introduction of electronic statements ofaccount and digital archiving systems repre-sents the latest technical innovation in ac-counting. The cross-border Euro CashManagement provides improved liquiditycontrol, through which interest advantages inthe entire Euro region can be used.

The Central Internal Administration hassuccessfully completed projects for processoptimization in the fields of BuildingManagement and Purchasing.

The online purchasing platform for goods andservices, the eB2B market place, is based onthe latest Internet technology. In connectionwith bundling activities for the increased useof synergy effects, general contracts foroffice supplies and office equipment ap-plicable throughout Europe were concluded.

The SAP Center increasingly markets itscompetencies to G+J companies abroad. As a national reference customer of SAP AG,the SAP Center plays a leading role in theimplementation of new technologies inGermany. Innovative technologies wereintroduced in the Logistics, AdvertisementManagement and Controlling areas as well asCorporate Strategy.

Outlook: Further improvement of

customer satisfaction

The positioning of Central Services as acustomer-oriented service provider will beoptimized further. With the help of regularcustomer surveys, it is ensured that allservices can be adapted flexibly to changingcustomer requirements.

Central Services26 – 27

Potential managers at Gruner + Jahr regularly take part in courses with publishing-specific topics and development programs for personality development.

Central Services“The Central Services provide the operational units of Gruner+Jahr with the

necessary infrastructure for smooth business operations. Consistent customer

orientation and the highest level of flexibility characterize the Central Services

as a competent service provider.”

Dr. Martin Schuster, President, Central Services Division

Environmental Awareness28 – 29

In 1990, Gruner + Jahr had already anchoredits responsibility for the environment in itscorporate principles and thereby committeditself to environmentally-oriented behavior. A holistic Gruner + Jahr environmental con-cept oriented to the principle of sustainabilitywas implemented.

Environmental Management System

at Gruner Druck

The consistent pursuit of this environmentalorientation was the introduction of an inte-grated Quality and Environment Manage-ment System in the largest Gruner + Jahrprinting facility in Itzehoe. The facility receivedits certificate in compliance with ISO 14.001and 9.001 in March 2000. Process-orientedand thereby practical implementation of theEnvironment and Quality Management Sys-tem guarantees controlled ecological andeconomical optimization. The energy andwater resources are used as efficiently aspossible through the installation of the lateststate-of-the-art environmental technology.The Gruner + Jahr printing facilities in Dres-den, Itzehoe and Berlin not only surpass thestatutory environmental requirements by far,but are also leading with the reduction ofpaper and ink consumption.

As the most important raw material, paper isthe focus of environmental responsibility. Themanufacturing and production of the paperused at Gruner + Jahr should be as environ-mentally-compatible as possible. From theforest management, through the productionof pulp and paper, to printing and recycling, allstages of the process are optimized ecologi-cally in accordance with the latest state-of-the-art technology. Certificates confirm manu-facturing and ecological use of raw materials.Gruner + Jahr has given preference since1993 to paper which comes from ecologicalforest management. 100 percent chlorine-free is the standard for all German Gruner +Jahr magazines. The proportion of recycledpaper in our newspapers can amount to up to100 percent. The office paper and stationery used at Gruner + Jahr is also 100percent recycled paper. With high value maga-zines, the recycled paper proportion can be upto 15 percent and even up to 33 percent in spe-cial cases (for example, GEO).

Gruner + Jahr promotes sustainable

development of the Elbe region

As a publishing house on the Elbe river, Gruner + Jahr supports the “Living Elbe”project in an environmental partnership with

Deutsche Umwelthilfe e. V., an environmentalhelp group. Its objectives are the developmentof a holistic concept for the protection of theriver from its source through to its mouth andrecognition of the Elbe region as a part of theUNESCO world heritage. Communication ispromoted amongst the more than 400 en-vironmental organizations active on the Elbe. Gruner + Jahr provides its communicationsknow-how and also supports individualinnovative projects.

The “Living Elbe - Vision of a Future UNESCOWorld Heritage” travelling exhibition was displayed in 1999 at 17 locations along theElbe. In summer 2000, it accompanied theRolf Zuckowski Tournee “We Here on theElbe”. The first International Elbe SwimmingDay on July 14, 2002 will be a further highpointof the “Living Elbe” project. On this Sunday,over 10,000 people between the North Seaand the Czech Republic are expected to jumpinto the cool waves of the Elbe and swim. The“Living Elbe” picture book illustrates thebeauty of the Elbe landscape and its culturaltreasures. You can find further information onthe Internet at the following sites:www.guj.de/umwelt, www.duh.de andwww.rivernet.org/elbe.

The close-to-nature structures near Boizenburg should become a part of the UNESCO World Heritage initiated by the “Living Elbe” project.

EnvironmentalAwareness

Gruner+Jahr places great value on the sustainable production of paper.

The manufacturing of this important raw material is optimized ecologially from the

tree through to the finished publication.

Culture and Society30 – 31

For years, it has been a declared objective of the Gruner + Jahr corporate culture tostrive for photographic quality beyond its own newspapers and magazines. SuchGruner + Jahr magazines as GEO and STERNare among the few magazines worldwidewhich give generous space to the photo-graphic image and stand for high quality re-porting photography. In the daily business ofthe print media, it is not seldom that thelatest photos reduce their predecessors toscrap paper to give priority to the latest. On the other hand, time can be stopped inthe context of an exhibition and the symbolicforce of the photographic image can be madeso much more effective.

For this reason, Gruner + Jahr has supportedits own national and international exhibitionprojects for years. In the perception of thepublic, the publishing house is not only theplace where newspapers and magazines are developed and manufactured, but also aliving forum of exchange and communi-cation. Above all, the exhibitions in theHamburg Press Building are permanentlyestablished in the cultural life of the city.

On the occasion of its 25th anniversary insummer 2001, the GEO documentary maga-zine exhibited “The earth from above,”a proj-ect by the French aerial photographer YannArthus-Bertrand. This fascinating portrait ofthe planet earth attracted over 800,000 visi-tors to the Elbe Docks and the HamburgPress Building. The partnership with theWorld Press Photo Award, the mostesteemed international prize for press photography, is in its eight year. In a Germanpremiere, Gruner + Jahr honored the bestphotographs of the past year selected by anindependent jury. In addition to moving anddisturbing pictures from the conflict zones ofthis world, the exhibition also showed theother side of documentary photography: Fascinating pictures of nature, insight intoforeign worlds and photographic highlightsfrom the fields of art, culture and sports.

In July 1998, Gruner + Jahr founded Gallery11 in the Press Building in Hamburg. Its ob-jective is to offer young photographers aplatform for presentation and discussion. In a building for which the medium of pho-tography is of existential importance, just as

the written word, young photographers havefound an opportunity to present their work tothe public.

In addition to its engagement for photogra-phy, Gruner + Jahr supports the arts and culture in other areas. Several promotionalprizes have been created by Gruner + Jahrmagazines. BRIGITTE presents the Bettinavon Armin prize every year for the mostconvincing short stories. The Egon ErwinKisch prize initiated by STERN is consideredto be the most prestigious award for the bestGerman reporting. Starting last year,HÄUSER magazine has supported thearchitectural competition of the ReinerFoundation for the most beautiful singlefamily houses.

The worldwide youth exchange projectCome on! is dedicated to the internationalcharacter of our publishing house. Come on!offers our employees’ children the possibilityto spend the summer with a host familyabroad, where children and young peopleplayfully learn to deal with other languagesand cultures.

The GEO exhibition “The earth from above” could be seen in Summer 2001 in the Gruner + Jahr Press Building as well as in the open air at the Hamburg Docks.

Culture and Society

Gruner+Jahr is not only the worldwide homeland of fascinating newspapers and

magazines, but also bears social responsibility in addition to its corporate objectives.

The promotion of the arts and culture is therefore an essential component of the

G+J self-concept.

Annual FinancialStatement

The Gruner + Jahr Group of Companies Financial Situation

The equity and equity-like items contain the fixed contractual contributions of theumbrella company, capital reserves and profitreserves, Group earnings as well as theshares of other shareholders in the capital.

Annual Financial Statement32 – 33

The Gruner + Jahr Group of CompaniesWorldwide balance sheet as of June 30, 2001

Summary

Annual Financial Statement34 - 35

The Gruner + Jahr Group of CompaniesWorldwide profit and loss account

July 1, 2000 to June 30, 2001

Summary

The Gruner+Jahr Group of CompaniesExtract from the Attachment to the

Worldwide Annual Financial Statement as of June 30, 2001

Gruner + Jahr AG & Co is a majority holding of Bertelsmann AG and is included with itssubsidiaries in the Bertelsmann Groupfinancial statements.

As the umbrella company, Gruner + Jahr AG& Co prepares a worldwide annual financialstatement in accordance with the require-ments of the German Commercial Codealthough it has no legal obligation to do so. Its subsidiary companies at home and abroadare included in it.

Because of their function as the manage-ment holding, Druck- und Verlagshaus Gruner + Jahr AG and its subsidiaries are also included in the worldwide financialstatement.

1. Information on Consolidation

Except for 18 companies, all subsidiaries ofGruner + Jahr AG & Co at home and abroad incompliance with § 290 Commercial Code as well as the Druck- und Verlagshaus Gruner + Jahr AG with its subsidiaries areincluded in the worldwide annual financialstatement. The companies not included were of secondary importance, in compliancewith § 296 Para. 2 Commercial Code.Although Druck- und Verlagshaus Gruner + Jahr AG does not hold a partici-pation in the Hungarian company Népszabad-ság AG, the latter is fully consolidated be-cause Druck- und Verlagshaus Gruner + JahrAG performs the management function inaccordance with an agreement. Accordingly,the scope of the consolidation was extendedin accordance with economic criteria.

The worldwide financial statement alsoincludes 53 additional associated companies

at home and abroad. They are included with their proportional equity in principle(equity method).

The financial statements of the companiesincluded in the full consolidation were auditedby their respective auditors in accordancewith the usual professional principles. The audit certificates also cover compliancewith standardized evaluation methods and correct inclusion of the national financialstatement in the financial statements inaccordance with the German CommercialCode.

2. Consolidation Methods

The financial statements of the companiesincluded were prepared primarily as of thebalance sheet reference day of the worldwidefinancial statement. The methods of report-ing and evaluation of Gruner + Jahr AG & Co(umbrella company) were also applied by theindividual companies included. An adaptationof the annual financial statements of thecompanies reported in accordance with theequity method was not performed.

Internal sales, expenses and revenues as well as lendings, accounts receivable,accounts payable and reserves among the companies included were completelyeliminated.

Intermediate results from supplies and ser-vices among the companies included couldbe ignored because they were of secondaryimportance with respect to the asset, finan-cial and earnings situation of the Group.

The book values of the holdings were re-ported in the capital consolidation with theequities attributed to them at the point in

time of the acquisition of the shares in accor-dance with the requirements of § 301 Para. 1No. 1 Commercial Code (book value method).The differences remaining after distributionto assets and debts are reported as goodwill.These differences are essentially reserves innature.

The holdings in associated companies areevaluated with the amount which corre-sponds to the proportional equity of theassociated company at the time of the ac-quisition of the shares (§ 312 Para. 1 No. 2Commercial Code). If the procurement costsexceed the proportional equity, goodwill isreported the first time they are included inprinciple.

3. Methods of Reporting and Evaluation

The financial statements of foreign sub-sidiaries prepared in national currencies havebeen converted as follows:

The balance sheets have been converted at the average exchange rate on the balancesheet reference day.

The expenses and revenues in the profit andloss accounts have been converted at theannual average exchange rate and the annualsurplus has been converted at the averageexchange rate on the balance sheet referenceday. The resulting difference is included inother operating revenues or expenses.

Annual Financial Statement36 – 37

Intangible Assets

Intangible assets acquired are evaluated attheir procurement costs reduced byscheduled depreciation.

The original supply rights which were capital-ized in the opening DM balance sheets andwere evaluated at their going concern value inaccordance with § 31 Para. 1 No. 1 DMBilGwere reported reduced by scheduled depreciation.

The values of subject matter in use andgoodwill from the capital consolidation andthe application of the equity method werecapitalized and, if they exceeded a value of DM 1 million, were depreciated on a scheduleover 15 years in principle. For goodwill in themultimedia area, the depreciation intervalamounts to five years. As an exception to this,goodwill (Euro 147 million) in accordance with § 309 Para. 1 Sentence 3 Commercial Codewas offset against the capital shares ofoutside third parties.

Until fiscal year 1997/1998, the goodwillswere generally offset against the reserves orthe capital shares of third parties without af-fecting the operating result.

Material Assets

Material assets were reported at their pro-curement or manufacturing costs reduced byscheduled depreciation. Movable assetswere primarily depreciated with the decliningbalance method while immovable assetswere primarily depreciated linearly. The depreciation rates are based on theexpected service life. In case of expectedpermanent loss of value, unscheduled write-offs were made.

Financial Assets

The associated companies were reportedwith their proportional equity capital inaccordance with the equity method.

The other holdings were reported at theirprocurement costs or, when the settlementvalue was lower on the reference day, theywere reported with the lower settlementvalue.

Inventories

The inventories were evaluated at procure-ment or manufacturing costs or at the lowerstock market or market price or the settle-ment value as of the reference day.

Accounts Receivable and Other Assets

Accounts receivable and other assets werereported with their nominal value. Recogniz-able risks of loss were taken into accountthrough individual write-downs. In addition,global write-downs were made because ofgeneral credit risks. Accounts receivable inforeign currencies were reported with the bidprice on the balance sheet reference day,taking account of the principles of reporting at the lesser of book or market value.

Accounts Receivable From Associated

Companies

Associated companies are also understoodas those companies which are not bound toGruner + Jahr AG & Co, but to its majorityshareholder, Bertelsmann AG.

Reserves and Items Similar to Equity

In addition to capital/profit reserves andGroup results, this item essentiallycomprises the shares of other shareholders.

Pension Reserves

The estimation is based on actuarial prin-ciples with present values, taking account ofan interest rate of six percent in most cases.The pension reserves in Germany werecalculated on the basis of the new 1998Mortality Tables. The adjustment was per-formed in accordance with tax regulations.

Reserves for Taxes and Other Reserves

Reserves were formed for taxes, recogniz-able risks, uncertain obligations andthreatened losses from pending business in accordance with reasonable commercialjudgment, to the extent of the expectedvalues.

Accounts Payable

The accounts payable were reported with therepayment amount. Accounts payable inforeign currencies were reported with the askprice as of the balance sheet reference day,taking account of the principle of reporting atthe lesser of book or market value.

4. Auditors’ Statement

The auditors issued an unrestrictedconfirmation of the complete worldwidebalance sheet of the Group of Companies.

Gruner+Jahr Members of the Supervisory Board

Supervisory Board

Gerd Schulte-Hillen ChairmanHamburg

Klaus UngerDeputy Chairman Hamburg

Birgit Breuel Hamburg

Dr. Jochen Frangen Itzehoe

Max Gassner Itzehoe

Dorit Harz-Meyn Hamburg

Dr. Tessen von Heydebreck Frankfurt/Main

Bernd Köhler Dresden

Dr. Siegfried Luther Gütersloh

Rolf Schmidt-Holtz Hamburg

John Vinocur Paris

Michael Walter Hamburg

Supervisory Board38

Executive Board

Dr. Bernd Kundrun President and CEOHamburg

Axel Ganz President of the International Magazine DivisionParis

Angelika Jahr-Stilcken President of Journalism Hamburg

Dr. Martin Schuster President of the Central Services DivisionHamburg

Dr. Edelbert Schwarze President of the Printing DivisionItzehoe

Martin StahelPresident of the Corporate Development and Strategy DivisionHamburg

Achim Twardy President of the Newspaper Division(since August 2001) Hamburg

Rolf Wickmann President of the German Magazine DivisionHamburg

Executive Board 39

Gruner+Jahr Members of the

Executive Board

Dr. Bernd Kundrun

Angelika Jahr-Stilcken

Axel Ganz

Rolf WickmannAchim Twardy

Dr. Martin Schuster

Martin Stahel

Dr. Edelbert Schwarze

The Gruner+Jahr Group of CompaniesMost Important Holdings Status November 1, 2001

Most Important Holdings40

100 % Domestic Companies

Gruner + Jahr AG & Co, Hamburg

Berliner Presse Vertrieb GmbH, Berlin

Berliner Verlag GmbH & Co., Berlin

Börse Online Verlag GmbH & Co., Munich

DPV Deutscher Pressevertrieb GmbH, Hamburg

Ehrlich & Sohn GmbH & Co., Hamburg

G+J Anzeigenzeitungen GmbH, Berlin

G+J Berliner Zeitungsdruck GmbH, Berlin

G+J Computer Channel GmbH, Hamburg

G+J Electronic Media Service GmbH, Hamburg

G+J Multimedia Ventures GmbH, Hamburg

G+J Wirtschaftspresse Online GmbH, Munich

G+J Zeitschriften-Verlagsgesellschaft mbH,Hamburg

IPV Inland Presse Vertrieb GmbH, Hamburg

K+S Kundenzeitschriften- und Service- Verlags-gesellschaft mbH, Hamburg

Living At Home Multi Media GmbH, Hamburg

MVF Magazin-Verlag am Fleetrand GmbH,Hamburg

Norddeutsche Verlagsgesellschaft mbH, Hamburg

Picture Press Bild- und Textagentur GmbH,Hamburg

stern.de GmbH, Hamburg

Tip Verlag GmbH & Co. KG, Berlin

Domestic Holdings

Hamburger Journalistenschule Gruner + Jahr -DIE ZEIT GmbH, Hamburg.........................95%

Dresdner Druck- und VerlagshausGmbH & Co. KG, Dresden..........................60%

handy.de Vertriebs GmbH, Hamburg ....58,45%

FairCar online-services GmbH, Stuttgart....................................................50%

Financial Times Deutschland GmbH & Co. KG, Hamburg ........................50%

G+J Berlin Online GmbH & Co. KG, Berlin..50%

G+J/RBA GmbH & Co. KG, Hamburg.........50%

M.C. Verlagsgesellschaft mbH, Munich......................................................50%

travelchannel GmbH, Hamburg..................50%

manager magazin Verlagsgesellschaft mbH, Hamburg .......24,9%

SPIEGEL-Verlag Rudolf Augstein GmbH & Co. KG, Hamburg.....24,75%

Vereinigte Motor-Verlage GmbH & Co KG,Stuttgart ....................................................15%

Foreign Holdings

GyJ España Ediciones S.L., S. en C., Madrid, Spain ..........................................100%

G+J Gruner + Jahr Polska Sp. z.o.o. & Co.,Spolka Komandytowa, Warsaw, Poland .......................................100%

Gruner + Jahr Printing and Publishing Company, New York/Waseca, USA...........................100%

Gruner + Jahr (Schweiz) AG, Zurich, Switzerland ..................................100%

Gruner + Jahr Verlagsgesellschaft m.b.H., Vienna, Austria.........................................100%

Gruner + Jahr ZAO, Moscow, Russia ......................................100%

Información y Moda S.A., Madrid, Spain ..........................................100%

Prisma Presse S.N.C., Paris, France ............................................100%

VSD S.N.C., Paris, France.........................100%

Népszabadság Rt., Budapest, Hungary ..............................67,65%

Verlagsgruppe NEWS Ges.m.b.H., Tulln, Austria.........................................56,03%

Vydavatelstvo casopisov a novin spol. s.r.o.,Bratislava, Slovakia.....................................51%

Expres s.r.l., Bucharest, Rumania...............50%

Gruner + Jahr/Mondadori S.p.A., Milan, Italy.................................................50%

GyJ Publicaciones Internacionales S.L. y Cia., S. en C., Madrid, Spain ............................................50%

G+J/RBA Publishing C.V., Amsterdam, Netherlands ..........................50%

G+J/RBA S.N.C., Paris, France...................50%

G+J RBA Sp. z.o.o. & Co., Spolka Komandytowa, Warsaw, Poland......50%

Blic Press d.o.o., Belgrade, Yugoslavia.......49%

Publishing Facilities46 - 41

Domestic

Gruner + Jahr AG & Co

Druck- und Verlagshaus

Am Baumwall 11 20459 Hamburg Telephone +49-40-37 03-0 Telefax +49-40-03-60 00 oeffentlichkeitsarbeit@guj.de

Berliner Presse Vertrieb GmbH

Ullsteinstraße 89 12109 Berlin Telephone +49-30-701 88-0 Telefax +49-30-701 88-178info@bpv-berlin.de

Berliner Verlag GmbH & Co.

Karl-Liebknecht-Straße 29 10178 Berlin Telephone +49-30-23 27-58 65Telefax +49-30-23 27-61 71pr.berlinerverlag@berlinonline.de

Deutscher Pressevertrieb GmbH

Wendenstraße 27–29 20097 Hamburg Telephone +49-40-237 11-0 Telefax +49-40-237 11-219dpv-info@dpv.de

Dresdner

Druck- und Verlagshaus

GmbH & Co. KG

Ostra-Allee 20 01067 Dresden Telephone +49-03 51-48 64-0Telefax +49-03 51-48 64-2800 frank.mario@dd-v.de

G+J Anzeigenzeitungen GmbH

Grünberger Straße 54 10245 Berlin Telephone +49-30-293 88-600Telefax +49-30-293 88-650pongracic@gujazz.com

Gruner + Jahr AG & Co

Druck- und Verlagshaus

Gruner Druck

Am Voßbarg 25524 Itzehoe Telephone +49-48 21-777-1 Telefax +49-48 21-777-449langefeld.wolfgang@guj.de

IPV Inland Presse Vertrieb GmbH

Wendenstraße 27–29 20097 Hamburg Telephone +49-40-237 11-0 Telefax +49-40-237 11-215ipv@ipv-hh.de

TIP Verlag GmbH & Co. KG

Potsdamer Straße 89 10785 Berlin Telephone +49-30-250 03-0 Telefax +49-30-250 03-399tip@tip-berlin.de

Verlag

Ehrlich & Sohn GmbH & Co.

Griegstraße 75 22763 Hamburg Telephone +49-40-883 03-401Telefax +49-40-883 03-402bubel.susanne@guj.de

Verlagsgruppe Fleet

MVF Magazin-Verlag am

Fleetrand GmbH

Stubbenhuk 5 20459 Hamburg Telephone +49-40-37 03-79 20 Telefax +49-40-37 03-79 51service@tvtoday.de

Verlagsgruppe Köln

G+J Wirtschaftspresse

Eupener Straße 70 50933 Cologne Telephone +49-221-49 08-00Telefax +49-221-49 08-285hellermann.anne@guj-koeln.de

Verlagsgruppe München

Weihenstephaner Straße 7 81673 Munich Telephone +49-89-41 52-00 Telefax +49-89-41 52-640vgm@muc.guj.de

Abroad

Brown Printing Company

2300 Brown Avenue P.O. Box 1549 Waseca, MN 56093 USA Telephone +1-507-835 24 10Telefax +1-507-835 02 38browninfo@bpc.com

Expres s.r.l.

Piata Presei Libere 1 Sectorul 1 Bucharest, Rumania Telephone +40-1-202 20 99 Telefax +40-1-202 20 10 dueffert@expres.ro

G+J España Ediciones S.L.S. en C.

Marqués de Villamagna 4 E-28001 Madrid Telephone +34-91-436 98 00Telefax +34-91-576 66 55cperez@gyj.es

Gruner + Jahr /

Mondadori S.p.A.

Corso Monforte, 54 I-20122 Milan Telephone +39-276 21 01 Telefax +39-276 01 34 39info@gujm.it

Gruner + Jahr

Polska Sp.z o.o & Co

Spolka Komandytowa ul. Wynalazek 4 PL-02-677 Warsaw Telephone +48-22-607 02 00Telefax +48-22-607 02 21jarszak.k@gjpoland.com.pl

G+J USA Publishing

375 Lexington AvenueNew York, NY 10017-5514 USATelephone +1-212-499 20 00Telefax +1-212-499 22 63sgeramia@gjusa.com

Gruner + Jahr ZAO

Office 806 16, Krasina Pereulok Moscow, 123056 Russia Telephone +7-095-937 60 90Telefax +7-095-937 60 91geo@gjrussia.com

Népszabadság Rt.

Bécsi út. 122–124 H-1034 Budapest Telephone +36-1-436 44 44 Telefax +36-1-250 02 50 redeizs@nepszabadsag.hu

Prisma Presse SNC

6, rue Daru F-75008 Paris Telephone +33-1-44 15 30 00Telefax +33-1-44 15 32 02communication@prisma-presse.com

Verlagsgruppe NEWS

Gesellschaft m.b.H.

Taborstraße 1-3 A-1020 Vienna Telephone +43-1-21 31 20 Telefax +43-1-21 31 21 650redaktion@news.at

Vydavatelstvo casopisov

a novin s r.o.

Jelenia 18 SL-81278 Bratislava Telephone +42-12-57 26 04 00Telefax +42-17-57 26 04 50kostkova@novycas.sk

Gruner+Jahr Publishing Facilities

Domestic

Berlin

(including former East Germany)

Gruner + Jahr AG & CoKurfürstenstraße 72–74Constanze-Pressehaus10787 BerlinTelephone +49-30-25 48 06-50Telefax +49-30-25 48 06-51vb.berlin@guj.de

Düsseldorf

Gruner + Jahr AG & CoP.O. Box 102661, 40017 DüsseldorfVisitors: Heinrichstraße 2440239 DüsseldorfTelephone +49-211-618 75-0Telefax +49-211-61 33 95vb.duesseldorf@guj.de

Frankfurt

Gruner + Jahr AG & CoP.O. Box 900407, 60444 FrankfurtVisitors: Adalbertstr. 44–4860486 FrankfurtTelephone +49-69-79 30 07-0Telefax +49-69-77 24 60vb.frankfurt@guj.de

Hamburg, Hanover

Gruner + Jahr AG & CoPostal address: 20444 HamburgVisitors: Am Baumwall 1120459 HamburgTelephone +49-40-37 03-0Telefax +49-40-37 03-56 90vb.hamburg@guj.de

Munich

Gruner + Jahr AG & CoElisenstraße 3A80335 MunichTelephone +49-89-208 05-0Telefax +49-89-208 05-200vb.muenchen@guj.de

Stuttgart

Gruner + Jahr AG & CoWilhelmsplatz 1170182 StuttgartTelephone +49-711-228 46-0Telefax +49-711-228 46-33vb.stuttgart@guj.de

Abroad

Asia

(not including Japan and Korea)Godfrey Wu, MHI Limited1305 C.C. Wu Building302–308 Hennessy RoadWanchai, Hong KongTelephone +852-25 91 10 77Telefax +852-25 72 51 58gwu@mhi.com.hk

Australia, New Zealand

Anton GruzmanSouth Pacific Media68 Victoria StreetNorth Sydney, N.S.W 2060Telephone +61-2-99 29 59 29Telefax +61-2-99 22 11 00sthpac@ozemail.com.au

Austria and Southern Tyrol

Erwin W. LuthwigGruner + Jahr Verlagsges. mbH.Parkring 121010 ViennaTelephone +43-1-51 25 64 70Telefax +43-1-512 57 32luthwig.erwin@guj.de

Belgium, Luxembourg,

Netherlands

Ann De MusterGruner + Jahr AG & CoAv. du Gén. de Gaullelaan 191050 BrusselsTelephone +32-2-648 18 40Telefax +32-2-648 21 01guj.benelux@guj.de

Canada

Richard BrownVictor Brown & Associates Corp.15 Zorra StreetToronto, OntarioCanada M8Z 4Z6Telephone +1-416-259 96 31Telefax +1-416-259 96 34zorra@on.aibn.com

Denmark, Norway

Mark HjortkildeAdbizz Danmark ApSHolte Stationsvey 14, 1st floor2840 HolteTelephone +45-46-91 00Telefax +45-46-91 01markhjortkilde@adbizz.dk

France

Yves SwartenbroekxGruner + Jahr InternationalServices Marketing et Media S.à.r.l.17, avenue Matignon75008 ParisTelephone +33-1-53 93 73 93Telefax +33-1-53 93 73 90gruner.paris@guj.de

Great Britain, Ireland

David HardyGruner + Jahr InternationalMarketing and Media Services Ltd.1 Golden SquareLondon W1F 9HWTelephone +44-207-4 37 43 77Telefax +44-207-4 37 43 78hardy.david@guj.de

42

Gruner+Jahr Publishing Offices

Publishing Offices

Greece, Cyprus

Sophie PapapolyzouPublicitas Hellas S. A.32 Kifissias Ave., Atrina Center15125 Maroussi - AthensTelephone +30-1-68 51 7 90Telefax +30-1-68 53 3 57publihel@netor.gr

Hungary

Mónika LászlóNépszabadság Rt.Bécsi út 122–124H-1034 BudapestTelephone +36-1-436 44 55Mobile (30) 95 47 429Telefax +36-1-250 11 18laszlom@nepszabadsag.hu

Italy

(not including Southern Tyrol)

Dr. Daniele BleiBlei S.p.A.Via degli Arcimboldi, 520123 MilanTelephone +39-02-72 25 11Telefax +39-02-72 25 12 51blei@bleispa.com

Japan

Hiroshi IwaiMediahouse Inc.2-3-6, KudankitaChiyoda-kuTokyo, 102-0073Telephone +81-3-32 22 78 11Telefax +81-3-32 34 11 40mediahs@asiawide.or.jp

Portugal

Carlos SimõesAJE Sociedade Editorial, LDARua Baráo de Sabrosa, 165-A1900-088 LisbonTelephone +21-811 01 00Telefax +21-814 00 44carlos.simoes@aje.pt

South Africa

Gisela AlbrechtIntern. Media Representatives Ltd.Private Bag X 18Bryanston 2021South AfricaTelephone +27-11-706 28 20Telefax +27-11-706 28 92gisela@imrsa.co.za

South Korea

M. S. KimMedia NetworkC. P. O. Box 6997Seoul/KoreaTelephone +82-2-37 02 17 91Telefax +82-2-722 54 75medianetwork@mn.co.kr

Spain

Paul LeahuInfotrade S.A.Edificio PinarC. Pinar, 6 Bis/3F28006 MadridTelephone +34-91-411 33 14Telefax +34-91-563 21 81infotrade@bitmailer.net

Sweden, Finland

Sten JohannissonAvisator International ABBiblioteksgatan 29Box 501910241 StockholmTelephone +46-8-55 54 00 60Telefax +46-8-55 54 00 66sten.johannisson@avisator.com

Switzerland

Hans H. OttoGruner + Jahr (Schweiz) AGZeltweg 158032 ZurichTelephone +41-1-269 70 70Telefax +41-1-269 70 71guj.schweiz@guj.de

Turkey

Dr. Reha BilgeMedia Ltd.Ali Sami Yen Sk. No. 2 Kat 380290 Gayrettepe/IstanbulTelephone +90-212-275 84 33Telefax +90-212-275 92 28medialtd@superonline.com

USA

Percy FahrbachGruner + Jahr InternationalMarketing and Media Services, Inc.1540 Broadway, 29th FloorNew York, N.Y. 10036-4094Telephone +1-212-782 12 00Telefax +1-212-782 12 11gjintl@gjintl.com

Publishing Offices43

Chronicle

1948

When the first edition of STERNis published by the Henri NannenGmbH publishing house on Au-gust 1, with a printed circulationof 130,735 copies, the FederalRepublic of Germany has notbeen founded. Printed circulationreaches its highpoint in 1980 with2,021,115 copies.

1965

The newspaper publishers JohnJahr (CONSTANZE, BRIGITTE,SCHÖNER WOHNEN, CAPITAL)and Dr. Gerd Bucerius (STERN,Die Zeit, among others) mergewith the printer Richard Gruner(Gruner & Sohn, Gruner DruckGmbH) to become Gruner + JahrGmbH & Co. Gruner holds 39.5 percent, Jahr 32.25 percentand Bucerius 28.25 percent ofthe shares.

1969

Richard Gruner sells his shares.The ownership structure of thepublishing house is reorganized:Jahr and Bucerius each hold 37.5 percent. Reinhard Mohn(Bertelsmann) participates with25 percent.

Gruner + Jahr takes over 90 per-cent of the Munich publishinghouse, Kindler & Schiermeyer(JASMIN, ELTERN, TWEN). Theremaining 10 percent stays withthe Owner-Manager, Ernst Nau-mann, who exchanges it later forfive percent of G+J shares.

1971

G+J takes a 24.75 percent partici-pation in the Spiegel publishinghouse (Der Spiegel). John Jahr(born in 1900) and Dr. GerdBucerius (born in 1906) withdrawfrom active management of thebusiness.BRIGITTE reaches a paid circu-lation of 1.4 million and therebybecomes the largest women’smagazine in Europe.

1972

G+J acquires 15 percent ofVereinigte Motor-Verlage GmbH& Co. KG (Auto, Motor, Sport).Gruner + Jahr GmbH & Co.becomes Druck- und VerlagshausGruner + Jahr AG & Co. The firstedition of the monthly magazineESSEN & TRINKEN appears.

1973

Bucerius exchanges his shares in G+J against shares in Bertels-mann AG, which becomes themajority shareholder of G+J with 60 percent. John Jahr (35 percent) and Ernst Naumann(five percent) hold the remainingshares.

1975

John Jahr sells 9.9 percent of hisshares to Bertelsmann AG andretains 25.1 percent.

1976

G+J takes a 33.3 percent partici-pation in Lübeck publishinghouse Ehrlich & Sohn KG (FRAUIM SPIEGEL). Bertelsmann AGtakes over the five percent hold-ing from Ernst Naumann and nowholds a total of 74.9 percent ofthe shares.GEO appears with an initial circu-lation of 100,000 copies. Theprinted circulation reaches itshighpoint in 1996 with 783,386.

1978

G+J is the first German publishinghouse to enter the internationalmagazine market: The CosmosDistribuidora S.A. publishinghouse (DUNIA, SER PADRES

HOY) is taken over in Spain.

G+J acquires the Parents Maga-zine Enterprises Inc. publishinghouse with the PARENTS and YMmagazines in the USA.The popular science magazineP.M. developed by Gerhard Peter Moosleitner is launched in Germany.The G+J School for Journalists isfounded in Hamburg. In 1984, onthe occasion of the 70th birthdayof the founder of STERN, it is re-named the Henri Nannen School.

1979

G+J purchases the gravure and offset printer Brown PrintingCompany in Waseca, Minnesota,USA.The French edition of GEO islaunched in Paris by the Partici-pations Edition Presse S.A.publishing house (later PrismaPresse S.N.C.),which wasfounded in 1978.HÄUSER and ART are launched inGermany.

1980

The business magazine IMPULSE comes onto the market.

DER STERN

Germany, 1948

SCHÖNER WOHNEN

Germany, 1975

CAPITAL

Germany, 1965

BRIGITTE

Germany, 1965

1981

GEO gets an offspring: GEOSPECIAL, a magazine dedicatedto travel. After the successfullaunch of GEO in France, G+Jbrings a magazine onto theFrench market based on theconcept of P.M.: the monthlymagazine ÇA M’INTÉRESSE. Spain is also enthusiastic aboutpopular science topics: MUY INTERESANTE is launchedsuccessfully.

1982

PRIMA, the newly-launchedwomen’s magazine in Francereaches a paid circulation of onemillion copies within one year.

1984

Entry into electronic media with a 50-percent participationin Ufa-Film- und Fernseh-GmbH.During the course of the year,G+J thereby becomes a partnerof the private television broad-casters RTL, RTL2 and VOX, thepay TV program Premiere as wellas various radio broadcasters.FEMME ACTUELLE is started inFrance.

1985

G+J completes the constructionof a new publishing building atBaumwall in Hamburg. TheEhrlich & Sohn publishing houseis taken over 100 percent. G+Jacquires a 24.9 percent participa-tion in the Manager MagazinVerlagsgesellschaft (ManagerMagazin) publishing company.SCHÖNER ESSEN and FLORAjoin the range of magazines. G+J founds Gruner + Jahr of theU.K. in London.

1986

With the purchase of theHAMBURGER MORGENPOST, a step into the newspaper busi-ness is made successfully. Usingthe same basic concept as theFrench magazine, PRIMA is ex-ported to Germany and England.TÉLÉ LOISIRS is started inFrance. The women’s magazineMIA is launched in Spain.Through Ufa, G+J takes a partici-pation in Radio Hamburg, one ofthe first private radio stations inGermany.

1987

Purchase of the Californian prin-ter Riverside County PublishingCompany by the G+J subsidiaryBrown Printing Company.

SPORTS (later SPORTS LIFE) and GEO WISSEN come onto themarket in Germany. G+J startsthe women’s magazine BEST inGreat Britain and the peoplemagazine VOICI in France. GEO appears at the newsstandsin Spain as well.

1989

G+J founds an Italian subsidiarycompany in Milan. The travelmagazine GEO SAISON isbrought onto the market inGermany.On November 16, one week afterthe fall of the wall, the specialedition of STERN “Germany –Borderless Joy” with photos of the peaceful revolution in theGDR, appears. Massive sales are made, especially in EastGermany.

1990

Start of the CHEMNITZER,DRESDNER and MECKLEN-BURGER MORGENPOST. G+J starts the women’s maga-zine VERA in Italy under a jointventure with Mondadori, theMilanese publishing house. G+J brings the German MARIECLAIRE onto the market in a jointcompany with Marie Claire Album.

G+J España receives the licensefor the Spanish edition ofCOSMOPOLITAN. The STERN-TV magazine starts at RTL, theprivate broadcaster. G+J movesinto the Press Building atBaumwall in the Hamburg harborarea. The G+J Board of Manage-ment cements its environmentalawareness as a basic corporateprinciple.

1991

The newspaper business is ex-panded further: The BerlinerVerlag is taken over as a part of ajoint venture. The BERLINERZEITUNG, BERLINER KURIER,WOCHENPOST and the programmagazine F.F. are launched. G+J also acquires the majority ofDresdner Druck- und Verlags-haus, in which the SÄCHSISCHEZEITUNG is published, as well asa 27.5 percent participation in the Druckhaus Friedrichshainprinters. Furthermore, G+Jengages in the advertisementnewspapers in the metropolitanareas of East Germany. The origi-nal East German magazineNEUES WOHNEN appears informer West Germany as well.

Chronicle44 – 45

TELE LOISIRS

France, 1986

FEMME ACTUELLE

France, 1984

MUY INTERESANTE

Spain, 1981

ART

Germany, 1979

’ ’

Directly after its launch in France,CAPITAL becomes market leaderamong business publications.

1992

G+J takes over the remaining 50 percent of the Berliner Verlagand increases its participation inDruckhaus Friedrichshain to 55 percent. The LEIPZIGERMORGENPOST is launched.The popular science magazineFOCUS appears in Italy and GreatBritain, and quickly becomes thelargest monthly popular maga-zine in Italy.

1993

G+J Polska is founded with itsheadquarters in Warsaw. Thewomen’s magazine CLAUDIAappears on the Polish market.G+J acquires a 49 percent hold-ing in Nice Presse Invest (NPI),which publishes the daily news-papers DÉLMAGYARORSZÁGand DÉLVILÁG in Hungarythrough a subsidiary company.The prominent people magazineGALA is launched in France. G+Jparticipates with 50 percent inthe Spanish editions of MARIECLAIRE and LA CASA DE MARIECLAIRE.

1994

The G+J participation in theDruckhaus Friedrichshain print-ing facility is raised to 100 per-cent. The people magazineGALA, the information illustratedTANGO and the program maga-zine TV TODAY are launched inGermany. G+J takes over theinvestment magazine BÖRSEONLINE.G+J acquires seven women’smagazines from the New YorkTimes Company in America,including FAMILY CIRCLE andMc CALL’s. The women’s maga-zine NAJ comes onto the marketin Poland. G+J takes a 51 percentparticipation in the Slovakian dailynewspaper NOVYCAS.

1995

BRIGITTE YOUNG MISS, whichhas been published as a specialedition since1990, appears as anindependent magazine.LEIPZIGER MORGENPOST andTANGO are stopped. 75 percentshares of both SPORTS LIFE andWOCHENPOST are sold.With GEO.DE, MOPO.DE, PM-MAGAZIN.DE, STERN.DEand TVTODAY.DE , G+J starts itsfirst Internet websites and isthereby one of the first profes-

sional providers in the German-language Internet.The management magazineL’ESSENTIEL DU MANAGE-MENT is launched in France. The women’s magazine HALOand the cooking magazine MOJE GOTOWANIE come onto the market in Poland.

1996

FOCUS starts in Poland; ELTERNFOR FAMILY and the children’smagazine GEOLINO, in Germany.The French G+J subsidiaryPrisma Presse takes over theweekly illustrated VSD. G+JFunk- und FernsehproduktionsGmbH is founded.The Berlin newspapers at G+J,BERLINER ZEITUNG, BERLINERKURIER, BERLINER ABEND-BLATT and TIP, go onto the Inter-net at BERLINONLINE.DE. The Advertisement Divisionstarts G+J CommunicationOffice, an Internet service foradvertisement customers.The illustrated printing facility atthe Gruner + Jahr Printing Centerin Dresden and the new news-paper printing facility in Berlin-Lichtenberg begin operation.Operations at DruckhausFriedrichshain are stopped.

1997

Electronic Media Service GmbH(EMS) starts the German-language search engine FIREBALL.DE, while BRIGITTEalso goes online.The Internet program magazineTV TODAY ONLINE+ COM-PUTER (ONLINE TODAY now)comes onto the market inGermany. The US printing facilities, theRiverside County PublishingCompany in California and theBrown Printing Division in Ken-tucky, are sold. As a counter-move, Brown Printing acquiresthe PennWell and Graftek printingfacilities in Woodstock, which arespecialized in printing technicalmagazines.

COSMOPOLITAN

Spain, 1990

FOCUS

Italy, 1992

MARIE CLAIRE

Spain, 1993

GEOLINO

Germany, 1996

1998

G+J brings the women’s maga-zine GRACJA to the newsstandsand takes over the weekly maga-zine MOJE MIESZKANIE inPoland. TOP GIRL, the magazinefor girls and young women fol-lows in Italy. The weekly peoplemagazine ALLO appears inFrance. GEO, already a success-ful magazine in Germany, Franceand Spain, is launched in Russia.G+J brings a magazine onto the market in China as well: CAR & MOTOR. With a 75 percent participation inthe Vienna NEWS Group (NEWS,TV MEDIA), entry into the Austri-an market is successful. FOR-MAT, the third magazine from theNEWS Group, follows in the fall.The G+J business press is com-plemented by BIZZ, the businessmagazine for a younger clientele.The Newspaper Division is ex-panded through a 50 percent par-ticipation in Expres, the Bucha-rest publishing house. Exprespublishes the national dailyshopping newspaper calledEVENIMENTUL ZILEI.Eltern goes online with EL-TERN.DE, while EMS starts thedaily newspaper search enginePAPERBALL.DE.

The new newspaper printingfacility at the Gruner + JahrPrinting Center in Dresden startsoperation.

1999

After 13 years, G+J sells theHAMBURGER MORGENPOSTto two Hamburg media entrepreneurs. The GEO family continues togrow: GEO EPOCHE, the maga-zine for history, appears. Underlicense from the NationalGeographic Society, G+J bringsthe NATIONAL GEOGRAPHICMAGAZINE and complementaryproducts onto the market in ajoint venture with RBA, theSpanish publishing house. Themagazine, which reaches thenewsstands in six countries inFrench, German and Polish, is a great success from its firstissue. Prisma Presse opens a new mag-azine segment on the Frenchmarket with the Internet maga-zine WEB MAGAZINE. The Inter-net travel agency TRAVEL-CHANNEL.DE is started. YOUNGMISS, ART and NATIONAL GEO-GRAPHIC go online.

2000

In a Joint Venture with Pearson,the London media group, G+J brings the FINANCIALTIMES DEUTSCHLAND to thenewsstands. This is the first re-launch of a new inter-regionaldaily newspaper in Germany forseveral decades.E-MEDIA sets a new emphasis inthe segment of Internet maga-zines in Austria. The InternationalMagazine Division starts threenew magazines: the businessmagazine CAPITAL in Spain, thetechnology-oriented consumermagazine JACK in Italy andNATIONAL GEOGRAPHIC in theNetherlands.Activities in the English-speakingarea are concentrated in the USA:G+J successfully enters theAmerican business magazinesegment through the acquisitionof INC and FAST COMPANY. Theactivities of both magazines arebrought together in the BusinessInnovator Group (BIG) in Boston.G+J withdraws from the Britishmarket for strategic reasons.

With the LIVING AT HOME maga-zine and the Internet portal of thesame name, G+J starts an inte-grated multimedia platform fo-cussed on the home, garden,kitchen and hospitality.

2001

G+J USA Publishing advancesinto the ranks of the top fivemagazine publishers in the USAthrough the purchase of the FAST COMPANY and INCbusiness magazines as well asthe relaunch of almost all othermagazines. The internationaliz-ation of successful magazines iscontinued with GALA in Polandand Russia and NATIONALGEOGRAPHIC in Hungary.After the merger with the KurierGroup and the start of theWOMAN women’s magazine, theNEWS publishing group publish-es 14 magazines in Austria.GEOlino, the innovative children’smagazine from G+J, appearsmonthly from January 2001. GEO is 25 years old. The jubileeexhibition “The earth fromabove” attracts 800,000 visitors.BRIGITTE WOMAN appearsregularly four times a year.

Chronicle46 – 47

LIVING AT HOME

Germany, 2000

FAST COMPANY

USA, 2000

GALA

Poland, 2001

Design and layout Agentur MedienMélange, Hamburg Photographs Steffen Rother, Cover page Andreas Bock, P.5 Volker Hinz, P.39 Karin Rocholl, Richard Stradtmann, Christian Kerber

People at Gruner + Jahr

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Netherlands

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Austria

▲

Slowakia

▲Spain

▲

Yugoslawia

▲Poland

▲

Germany

▲

China

▲

Italy

▲

Romania

▲

Hungary

▲

Russia

▲

USASta

tus

11/0

1

▲

France