Tamedia in the year 2001

As of 1 January, 2001, two new editors in chief take up their duties: Hannes Britschgi, previously in charge of the Rundschau news program with Swiss National TV, is now the head of Facts magazine, while Daniel Dunkel, as announced in December 2000, takes over the Schweizer Familie. René Bortolani, its former editor in chief, will develop and run the Medienforum, Tamedia’s own training and advanced training program for journalists.

Supported by TV3 manager Jürg Wildberger and Tamedia’s legal advisor Sandro Macciacchini, Tamedia’s Executive Management develops a position paper regarding the amendment of Switzerland’s radio and TV legislation (RTVG). They charge Victor Schmid of Hirzel.Neef.Rasi.Schmid Communication and Management Consultants with designing a pertinent lobbying campaign.

In February, the first employees of the magazine preproduction department move into their new offices in the Werd Media Building. The step-by-step relocation is scheduled to be complete by the end of March. At that point, there will be 600 people working in Tamedia’s new "glass palace”.

In March, Kurt W. Zimmerman announces that he will go into business for himself as a management consultant in early 2002. Mr. Zimmerman has been working for Tamedia for more than 10 years; his last position has been that of Publishing Manager Tages-Anzeiger/SonntagsZeitung and New Media.

On 19 March, Otto Coninx-Wettstein passes away in his 86th year. He had succeeded his father, Otto Coninx-Girardet, as CEO of the Company in 1956, making a name for himself throughout the industry as an innovative and farsighted publisher. Within the Company, “the boss” was highly appreciated for his social-minded and modest nature. In 1978, Otto Coninx-Wettstein withdrew from the Executive Management, and in 1987, he stepped down as Chairman of the Board. Still, elected honorary Chairman of the Board, he kept close ties with Tamedia until he died.

With retroactive effect from 1 January, 2001, Tamedia takes over a majority interest in BD Bücherdienst AG in Einsiedeln (Switzerland), now owning 72% of its stock capital. The second largest media distributor in Switzerland, BD Bücherdienst AG delivers books, records, tape cassettes, and magazines for various publishing houses.

In late March, Tamedia publishes its gratifying 2000 results: The group's operating result before amortizations increased by 3% to 179 million Swiss francs. The Board proposes a dividend of CHF 4.20 per share.

Tamedia’s TV3 TV station reports a favorable development of the station’s advertising revenues in the first quarter of 2001. Sales are 16.5% or CHF 1.155 million above budget.

In April, Christoph Marty (age 32) is named publishing manager of Facts magazine. He succeeds René Gehrig, who wants to concentrate on his duties as a member of the Group’s Executive Management.

After Facts magazine had freshened up its layout in the previous year, it is now the turn of facts.ch: The website’s redesign is put up for competition, generating proposals from more than 70 web design agencies. Selected by an in-house jury, the eight best designs are submitted to the site’s users. Their choice will be taken into account by the jury in making its decision. The redesigned facts.ch is scheduled to go on the Net in October.

Co-owned by Tamedia (85%) and Bluewin (15%), WinnerMarket AG streamlines its e-commerce business: Falling short in sales and profits, carwinner.ch is shut down in summer. In April, the Winner Group had already pulled out of the online auction business by discontinuing pricewinner.ch. 15 jobs are cut, partly by natural fluctuation and in-house relocation within Tamedia.

In late May, Eva Tobler succeeds René Moser as publishing manager of Du magazine. From 1994 until 1999, she had already worked for Annabelle, first as head of advertising, then as deputy publishing manager.

In June, Clemens Sieber takes over the management of the Bubenberg printing facility. He replaces Heinrich Grimm, who will devote all his time to the Rota 2005 project. Worth 150 million Swiss francs, this major project includes exchanging the old newspaper rotary printing machines and building a new rotary printing building in the Bubenberg printing facility.

In the middle of June, Tamedia celebrates the official inauguration of the new Werd Media Building. Various events, sight-seeing tours, and culinary treats from all over the world attract 2,500 visitors.

On 21 June, the Zurich Convention Center hosts Tamedia’s first shareholders’ meeting since going public. More than 350 shareholders are present. All of the Board’s proposals, including the proposal to declare a dividend of CHF 4.20 per share, are accepted. After the meeting, everybody is seizing the opportunity to meet and discuss with representatives of the Group.

In late June, Tamedia announces further personnel changes: Roger Köppel, previously editor in chief of Das Magazin, switches jobs to become editor in chief of Weltwoche. His successor is Res Strehle, supported by deputy editor in chief Peer Teuwsen. Claudia Curti and Gabriella Zinke quit their jobs as co-heads of Corporate Communications, leaving the group altogether at the same time. The position of Head of Corporate Communications is assumed by Peter Hartmeier, who had been manager of the Swiss Press Association since 1996 and editor in chief/publisher of Bilanz trade magazine before that.

Medienforum, Tamedia’s training and advanced training program for journalists, presents a promising midyear report: 200 applications for the current year, three quarters of which by in-house candidates.

TV3 announces favorable midyear results as well. In the first six months of 2001, its viewer market share doubled from 3.7% in the previous year to 7.4% this year. Revenues are above budget, and losses have decreased noticeably.

In early July, Deutsche Bank Switzerland publishes a study on Tamedia. Its critical analysis concludes that Tamedia shares offer more risks than chances. Deutsche Bank downgrades our stock from “market perform” to “underperform”, reducing the price target from 165 to 90 Swiss francs.

Tamedia strengthens its commitment to radio and TV, purchasing 100% of the stock of Belcom Holding AG, TeleZüri AG, Belcom AG and Takeoff-Communications AG from Roger Schawinski in August. The take-over does not include Roger Schawinski’s Tele 24 station and Money 24 platform.

In September, duties on the Executive Management level are redistributed: As of 1 Octobe, the Newspaper/TV and New Media Publishing Division Kurt W. Zimmerman was in charge of is partitioned into several divisions. Deputy CEO Jürg Brauchli takes over the Newspaper Publishing Division, CFO Patrick Eberle takes over the Informatics Division, and TV3 manager Jürg Wildberger becomes a member of the Executive Management.

Tamedia’s human resources department entrusts the GfS Research Institute with an employee attitude survey in order to find out about our employees’ happiness with their jobs as well as their attitudes towards their jobs and their superiors. The first survey of this kind was launched three years ago. Comparative results are expected in December.

TV3’s third-quarter results are unsatisfactory: Advertising revenues are 30% below budget, and viewers have decreased by 3.6% compared to the prior year period. The station’s advertising order volume is on the decline, fourth-quarter forecasts look gloomy. TV3 is now considered to be a failure.

In October, Tamedia’s Board of Directors appoints Martin Kall Chief Executive Officer. He will succeed Michel M. Favre at a later date, yet to be determined. Mr. Kall studied at the University of Freiburg (Germany) and at the London School of Economics (U.K.), concluding his studies with an MBA at Harvard University (MA).

The Belcom takeover can now be finalized: Tamedia sells its 26.7% interest in Radio Zürisee AG, thereby complying with the requirements made by the Swiss Competition Commission (WeKo) and the Federal Department of Environment, Transport, Energy and Communications (UVEK). Moreover, the Tages-Anzeiger’s radio news team, who used to produce news for Radio Zürisee, is disbanded.

Responding to the change in the economic environment, Tamedia’s Executive Management initiates a cost-cutting program: Costs in general are to be cut by 5%. Furthermore, it decides to put a freeze on hirings and investments. After being announced in August, the Focus project to examine Tamedia’s efficiency and employment of funds is taking its course in parallel.

The traumatic September and October events that took place in the U.S. and Switzerland make a further impact on advertising revenues. At the same time, however, the need for well-founded reporting increases, so both newsstand and subscription sales of the Tages-Anzeiger rise.

Tamedia reinforces its Corporate Communications Division by an investor relations service to ensure the flow of information to analysts, stock exchanges, and banks. The job is given to Regula Tschopp, an alumna of the University of Saint Gall (Switzerland) who left a senior manager’s position with PricewaterhouseCoopers to join us.

The economic downswing and the uncertainty of the international situation cause the advertising business to slump markedly. On 13 November, 2001, Tamedia issues a profit warning. The Group’s result is expected to reach only 30 to 35 million Swiss francs, which corresponds to less than half of last year’s result.

On 21 November, the Board decides to stop payments to TV3 immediately and to close down the station. The conditions Tamedia made when it committed itself to the project failed to be fulfilled. Unable to find a suitable partner after SBS Broadcasting SA bailed out, Tamedia had been financing the station on its own since January 2001. Due to limitations on commercials imposed by law and the rapid deterioration of the economic situation, the decision to abort the project became inevitable.

As a result of the changes in the area of electronic media, Tamedia reorganizes its corporate structure: Radio 24 and TeleZüri now fall under the responsibility of CEO Michel M. Favre, while the online business is integrated into the Advertising/Distribution/Printing/ Newspaper Publishing Division.

In view of the results of the 5% cost-cutting program announced in October, the Executive Management decides to initiate cost-saving measures worth 20 million Swiss francs.

Human resources manager Peter Höhener reports on the outcome of the employee attitude survey: Compared to three years ago, the corporate climate has improved a little, but still not to a satisfactory level. The survey’s analysis is summed up in a brochure which all Tamedia employees receive.

The Executive Management decides to increase salaries as of 1 January, 2002: Low-range salaries are generally increased by 1.5%, while medium-range salaries are increased by 1% or 60 Swiss francs per month at the most. In addition, .3% of the total payroll may be used to grant individual raises.

In December, the Moneycab financial website co-founded by Bluewin, Credit Suisse and Tamedia is sold to the Goldbach Media Group. This decision was made not only because outline conditions in the Web business have changed considerably, but also because Tamedia has redefined its multimedia strategy. Tamedia will now establish a close link between online activities, print activities, and radio and TV activities.

The Board authorizes the spending of 156 million Swiss francs to replace the old rotary printing machines and build a new rotary printing building in the Bubenberg printing facility. In the future, all newspapers can be produced using four-color printing throughout. Furthermore, the new equipment will allow newspaper disposition to be handled much more flexibly.

On 22 December, TV3 goes on the air for the last time, broadcasting the movie Titanic. In cooperation with the trade unions, Tamedia has established a generous redundancy scheme for the station’s 80 employees