Editorial by the Chairman of the Board of Directors

Dr. Pietro Supino, Chairman & Publisher

Dear Shareholders of TX Group,

Dear Business Partners,

Dear Colleagues,

Following the improved results of the first half of the year, business continued to develop positively. TX Group closed the 2023 financial year significantly better than in the previous year. Revenue, net income and cash flow increased considerably in an environment that remained challenging. This deserves great recognition and gratitude to all employees and management!

As in previous years, JobCloud (TX Group holds a 50% stake) made the biggest contribution to net income. Due to the difficult economic situation, the development of JobCloud and, to an even greater extent, karriere.at in Austria (JobCloud holds a 49% stake) slowed down. Revenues and net income have declined. Economic fluctuations have an impact on the cyclical job market. Nevertheless, JobCloud was able to generate a solid result. The long-term outlook remains very good, for which reason investments in business development continue to be made despite the decline in net income.

SMG Swiss Marketplace Group (TX Group holds a 30.74% stake) performed well. Following the establishment of the joint venture at the end of 2021 and the contribution of Homegate, Ricardo, tutti and car4you by TX Group, SMG more than doubled its net income in the 2023 financial year and also took a strategic step in the important real estate segment with the integration of Flatfox. The company confirms its great poten­tial, to be realised in the coming years as it moves towards its planned IPO. It should be noted that in 2023 SMG did not distribute any dividends and has therefore not yet made a contribution to TX Group’s cash flow.

Goldbach, Tamedia and 20 Minuten also made progress in the 2023 financial year. They are directly impacted by the ongoing structural change. Both advertising income and income from the user market are declining due to lower prices as a result of the digital transformation. The dual challenge is to adjust the cost base to economic realities while developing new offers and increasing the value added.

Goldbach took a major step forward in the strategically important area of out-of-home advertising with the acqui­sition of Clear Channel Switzerland. This resulted in a strong position that has already led to an increase in revenue and promises a significant contribution to net income in the future. Goldbach now has three strong business models: out-of-home advertising, the placement of advertising in electronic media (television and radio) and the commer­cialization and brokerage of online advertising. Goldbach continues to invest in the development and expansion of its own booking platforms (particularly for SME customers) and works closely with Tamedia and 20 Minuten.

With the support of Goldbach, 20 Minuten and Tamedia will strengthen their competencies in advertising marketing. Brand sales and the development of premium offers will benefit from this. 20 Minuten’s encouraging development of its leading position with its own platforms and on social media provides a good starting point. At Tamedia, the expansion of monetization in the digital user market remains the top priority. To this end, investments are also being made in new offerings. For example, the “Traffic Monitor” launched in 2023 will offer exclusive news, back­ground reports and investigative journalism specifically for the mobility industry.

Beyond day-to-day business, the mega topic of artificial intelligence (AI) has dominated discussions over the past year. Our industry has always been closely linked to technological developments in our Group: the first experiences with AI were already made several years ago. Now, the industry is becoming aware of AI’s great potential and how easily it can be exploited. What initially promised to boost efficiency and productivity is becoming an integral part of the creative process.

It is helpful that the new possibilities can to a certain extent be explored as a conversation. For the time being, applications are mostly being used behind the scenes to create the media offerings. But new forms of media use and interaction are also becoming imaginable. The development is fasci­nating and offers fantastic perspectives. However, we are still far from understanding everything, making it necessary to handle the new possibilities with care.

In this context, I am thinking above all about the role of transparency. We should develop positive goals and be cautious with restrictions. It would be irresponsible not to experiment with the possibilities of generative artificial intelligence. In any case, we media professionals remain responsible for the content that we publish - regardless of whether it is created by us, with machines or, in the future, most likely a combination of both.

And this responsibility is not a burden, but a great oppor­tunity, especially for journalism. After all, the new techno­logical possibilities will boost content creation. The existing oversupply of content will continue to increase massively. There will be even more questionable content. The danger of manipulation is not new. Now it will be magnified. That is a major concern. This is why we need professional journalism more than ever, which is the base of our confidence that there will be a long-term demand and willingness to pay for it.

Journalistic qualities are differentiating factors in content oversupply. If one does not want to lose relevance, one must offer more:

• journalistic work begins with a proper, independent and fact-oriented research

• whenever possible on spot

• resulting in verified content

• which must be placed in context

• reduced to the essential or prepared broader, depending on needs and taste

• combined with varying degrees of entertainment

• and practical information for everyday life is important.

Insights, deep dives, interpretations and forecasts are only possible on the basis of a carefully studied and clearly presented reality. This is the only way to lead a self-determined life. The aim is for people to be able to form their own opinions. Ultimately, it is about credibility as a prerequisite for freedom.

We documented our views about “Quality in the media” for Tamedia in 2017 in a handbook, which was revised last year and is soon to be published in a second edition. 20 Minuten has developed its own journalistic guidelines, which will be presented at the annual media conference.

It is not complicated but a matter of the basics of the journalistic craft

• to avoid errors and correct errors when these occur

• to strive for truth in the sense of completeness

• to ensure transparency and fairness

And it is about specific qualities that differently positioned media should fulfil according to their value proposition. Granted, this can be more complicated.

On this basis, we conduct an annual quality monitoring with all editorial teams. On the one hand, because dealing with journalistic quality is a question of culture. And secondly, to be accountable to the public for how we fulfil our respon­sibility.

Given the pleasing financial year 2023, I would like to thank our employees for their great commitment and our business partners and shareholders for their valued trust.

Dr. Pietro Supino

Chairman & Publisher