Eine gemeinsame Initiative von The Boston Consulting Group und der Eberhard von Kuenheim Stiftung der BMW AG

JOBLINGE—Joining Forces to Address Youth Unemployment Introduction May 2014

A joint initiative of The Boston Consulting Group and the Eberhard von Kuenheim Foundation of BMW AG

1

Currently, 600,000 youths have not yet found jobs after secondary school …

1. As of the end of 2011

Source: "Education in Germany 2012" Authoring Group Educational Reporting, 2012, statistics from the Federal Employment Agency; Bertelsmann Foundation

• 50% of students in lower secondary school

still do not have a training position one year

after completing school

• 300,000 youths are in the "transition system"

between school and training1

Demographic change and lack of skilled workers do not

solve the problem of these youth!

• Less than 20% of underprivileged youth make

the transition into training

• 1 in 6 fears long-term unemployment

From school straight to social

welfare?

2

Statistics

JOBLINGE participants …

Disadvantaged in many ways

Average of three years in transition

system

Most are over 20 years old

Over 60% with no more than a

lower secondary education

Over 70% have an immigrant

background

Over 60% receive social welfare

Approximately 65% are male

Dreams

JOBLINGE supports in particularly difficult cases … Who is the JOBLINGE target group?

Target group

JOBLINGE target group

Findings of a representative workshop with JOBLINGE participants

Adolescents

age 15–25

100%

Placeable in

state-subsidized

labor market

Placeable in

professional

training

(industry/

school)

No placement

necessary

3

1. Programs are usually one year long—avg. time in the transition system is 17 months; Bertelsmann Foundation: "Influence of demographic development on the transition system and the education

market," October 2010, p. 23 2. Placement rate in industrial and nonindustrial professional training after 18 months according to the Education Report 2008 (BIBB transition study), p 165 3. In 2010,

transition system expenses €4.3B for 324,000 youths in the transition system (Bertelsmann Foundation: "Influence of demographic development on the transition system and the education market,"

October 2010, p. 24 and Bertelsmann Foundation: "Employment in the life cycle," 2011, p. 11); scaled to an average period in the transition system of 17 months

Other measures in the

transition system

… quicker

JOBLINGE is …

… less expensive

… more effective

Ø 6 months Ø 17 months1

65% placement rate

33% placement rate2

Ø €6,400 per participant Ø €19,000 per participant3

vs.

vs.

vs.

… and yet outcomes of the program show real successes

Sustainable success: 80% of participants still

in training position after six months

4

JOBLINGE placement rate highly effective Compared with other measures (source: state government of NRW/Bertelsmann)

8

9

10

12

31

44

0 20 40 60 80

Youth workshop (Jugendwerkstatt)

Training preparation (part time)

Training preparation (full time)

Workshop year (Werkstattjahr)

Vocational orientation year (BOJ)

Vocational preparation measures (BvB)

68

Source: Quota level for JOBLINGE as of Sept. '13, working paper of the Ministry of Labor, Integration, and Social Affairs of the state of NRW : "Neues Übergangssystem Schule – Beruf in NRW"

(January 31, 2012) Note: JOBLINGE only counts placement in unsubsidized training positions or insurable employment as success—placement in further support programs not included

Replacement rate

(in %)

5

JOBLINGE currently active across Germany at 11 locations The success story continues

2014 2020

6,500 youths placed in vocational

training2 and thus aided …

In avoiding a life on social welfare

In shaping their lives in a sensible and self-determined way through vocational training

In becoming sustainably integrated into society

In receiving the opportunity to lead a financially independent life and have a family and children

Vision: In 2020 JOBLINGE will

have

Approx. 20 locations

More than 10,000 youths in

the program1

11 locations, others in the

planning stage

Approx. 1,900 youths in the

program

1. Assumption: JOBLINGE initiative grows with two locations/year; each location will guide 80 youth/year 2. Placement rate of 65%; occasional placement in work; sent to get appropriate help if necessary given the need for therapy, delinquency, etc.

Munich

Leipzig

Berlin

Cologne

Stuttgart

Hamburg

Ruhr

Frankfurt/

Rhine-Main

Munich

Leipzig

Berlin

Cologne

Ruhr

Bayerwald

Frankfurt/

Rhine-Main

Stuttgart

Hamburg

JOBLINGE wants to also initiate reforms in the

transition system between school and occupation

6

Youth work for a vocational training position in

JOBLINGE's six-month program

Apply to JOBLINGE

Program

steps:

Milestones:

duration:

Main

content:

Formats:

• Training or hire • Review of intended

career

• Job skills

• Practical verification

of aptitude for

training/job

• Motivation and

selection

• Career orientation

• Job skills

• Social skills

Orientation Probationary

period

Career chosen Job skills acquired Receive training/

job contract

Practical

experience

Accepted by JOBLINGE

~ 2 weeks ~ 6 weeks ~ 6 weeks ~ 11 weeks

Individual work, coaching

Charitable project work Hands-on work projects Qualification internship Application internship

Cultural and athletic program

On-site training

Betreuung durch/Arbeit mit Mentoren Coaching by/working with mentors

Four groups start

per year with

approx. 20

participants

~ 20

Follow-up Admission

Individual coaching

7

JOBLINGE's success builds on four pillars

Practical experience

from day one

Teamwork

Success in hands-on work

Motivation of being on-site

Bottom-up, empowering teaching methods

Strong partners = reliable central support

One-on-one

mentoring1

Personal connection and role model

Professional prep. and supervision of volunteers

Personal development for both sides

Joint local

commitment

Strong network for the

underprivileged

Public authorities

Industry

(> 1,100 companies)

Civil society

(> 900 mentors and trainers)

Professional

controlling

Transparent and effective

Nonprofit structure (gAG)

Umbrella org. ensures QM and sharing of best practices

Joblinge Foundation for sustainability

1. Volunteer mentors are professionally trained and coached

Joint dedication to excellence

in our contribution to JOBLINGE!

8

JOBLINGE mentoring offers …

JOBLINGE mentoring integrated

in employee development

… Relevant facets of personnel management, e.g.,

• Recognizing strengths and potential

• Promoting initiative and independence

• Demonstrating paths for development

• Leading structured feedback talks

• Persuasion

… Support within the organization

• Informational workshops for employees

• Trainings (mandatory)

• Close volunteer supervision

… Valuable experience

• Professionally and personally enriching for volunteers

• Specific, nonstaged leadership experience

• Ideal supplement to social commitment and targeted

employee qualification

"Because they influence the future of a young person, our junior employees find their work in the development program

to be significant and relevant—an experience that can't be replaced by mere role play" Helaba

1. JOBLINGE project work as part of the trainee program

Growing number of partners employing JOBLINGE mentoring as part of their management development programs

1

9

1,100 companies

Strong partner network based on JOBLINGE's success

Public sector

10

JOBLINGE offers companies a varied CSR package

Local

stockholders

Grants/

donations

Mentoring/

coaching

Training/

internship

Interregional

support

1. European Social Fund (ESF)

"As a stockholder of

JOBLINGE Munich,

we can demonstrate

our commitment

effectively and

sustainably. We can

actively help to shape

the initiative."

"We donate 10,000

euros annually; with

cofinancing from the

public sector1 our

donation is actually

worth 20,000 euros.

Thus we finance four

scholarships and help

four youths get on

track."

"We not only support

JOBLINGE financially,

we also commit

ourselves together

with our employees."

"We also use

JOBLINGE as a

management

development tool."

"We have already had

many from JOBLINGE

as interns and now

our second trainee.

We profit from the

great JOBLINGE

support even after

the end of the

program."

"With our annual

donation to the

umbrella organization,

we enable the

program to expand

quickly throughout

Germany with

consistent quality

…"

Partner

motivation

Duration Long term:

usually 5 years

Medium term:

usually 3 years

Continuously:

6 months,

or periodically

Continuously:

~ 6–10 weeks,

or 2–3 years

Long term:

usually 5 years

One-time application

for stocks +

~ €20,000 p.a.

€5–10,000 p.a. (usually connected

with donation)

(usually connected

with donation)

Premium partners

starting at €50,000 p.a. Grant

amount

Form of

commitment

Taking responsibility

locally as a

stockholder

Supporting local

youths in participating

in the program

Employees volunteer

as mentors/coaches

Training/internship

position offers

Supporting the growth of

the initiative

11

Modular investment structure Companies can invest in many ways

Mentors

Training

partner

Corp.

Volunteer

Stock-

holder

Grantor

Optional

Training

Grants

Stockholder

Duration of

commitment

As long as

possible

(poss. 5 years)

Contribution

per year(€)

1. Investment in stock capital of JOBLINGE Ruhr in the year of foundation plus donation for location setup

Supporter

Interregional partner

Starting at

€50,000—

premium

partner

Usually

€20,000

(Grants:

4 participants)1

€5–10,000

(Grants: 1–2

participants)

-

-

As long as

possible

(poss. 5 year)

Min. 3 years

(starting in

2013)

Continuously

Continuously

Local

partner

12

Currently active nationwide at 11 locations, more announced Charitable stock corporations set the framework for local commitment

Cologne Leipzig

Berlin Under development: Hamburg

Start date

June 2010

No. of employees

5

Participants

80 per year

Start date

February 2012

No. of employees

8

Participants

80 per year

Cologne

Leipzig Frankfurt/

Rhine-Main

Berlin

Munich

Hamburg

Active Under

development

Start date

January 2012

No. of employees

5.5

Participants

80 per year

Ruhr

Ruhr

with Essen and Gelsenkirchen

Start date

January 2013

No. of employees

7.5

Participants

125 per year

Stuttgart

Stockholders

Stockholders

Munich

Start date

April 2009

No. of employees

7

Participants

80 per year

Stockholders

Frankfurt/Rhine-Main

with Frankfurt, Offenbach, the Bergstraße, and Wiesbaden

Start date

March 2011

No. of employees

14,5

Participants

250 per year

Stockholders

Stockholders

Stockholders

gAG Region Stuttgart Start date

May 2014

No. Of employees

5

Participants

80 pro Jahr

Aktionäre

13

Partner

network

• ~ 1,100 corporate partners

• ~ 900 volunteers, ~ 20 public institutions

Growth

• 1,900 participants so far—currently more than 650 spots annually

• 11 locations nationwide—two of which opened in 2014 already

Public • > 70 positive press reports in 2013

• German Fairness Prize 2013, "best practice" in Bertelsmann and

ebs study

Reforms

Vorfinanzierung +

erfolgsabhängiger Bonus

Kontrolle von

Vermittlungserfolg und Nachhaltigkeit

Zahlung nur

bei Erfolg

• Support from administrative board of the Federal Employment

Agency

• Initiator of reforms in the transition system

• Placement rate: 65%

• Sustainability rate: 80%

Social

impact

Financing • Total budget: €3.8M in 2013

• Of which ~ €1.7M donations, ~ €2.1M public support

JOBLINGE seit Start auf starkem Wachstumskurs...

Mehr als 1.500 Teilnehmer bis Ende '13...

Kommentar: HR = Hochrechnung, FC = Forecast1. GrundschuljahrQuelle: Finanzübersicht Stand April 2013, Quotenstand JOBLINGE per Aug '13, Arbeitspapier des Ministerium für Arbeit, Integration und Soziales des Landes NRW : " Neues Übergangssystem Schule – Beruf in NRW" (31.01.2012)

372

304

448

182

102

34

1.582

318

13634

-500

0

500

1.000

1.500

2.000

+72%

2013

(Plan)

512

(+140)

2012

1.070

2011

622

201020092008

Anzahl

Teilnehmer

PlanIstKumuliert

... durch starkes geographisches Wachstum

1

58

5047

32

19

8

2

0

5

10

15

-40

-20

0

20

40

60

2

20102009

4

2011

3

7

2008

Anzahl

MAK

2013

+49%

2012 2014

(Plan)

11

10-1

BY X

MA Kapazität Anzahl Standorte

... bei weiterhin überdurchschnittlichen Vermittlungsquoten trotz starken Wachstums....

Vermittlungserfolge in ungeförderte, sozialversicherungspflichtige Ausbildung

8

9

10

12

12

31

33

68

0 20 40 60 80

Jugendwerkstatt

Ausbildungsvorbereitung (TZ)

Ausbildungsvorbereitung (VZ)

Werkstattjahr

Aktivierungshilfe

Berufsorientierungsjahr

BvB

Quelle: Quotenstand JOBLINGE per Aug '13, Arbeitspapier des Ministerium für Arbeit, Integration und Soziales des Landes NRW : " Neues Übergangssystem Schule – Beruf in NRW" (31.01.2012)

Ø 16%

Vermittlungsraten

(in %)

JOBLINGE—1,900 participants so far Facts and figures

14

Donation account

Recipient: JOBLINGE Stiftung

Account number: 16542466

Routing number: 30220190

IBAN: DE68302201900016542466

BIC: HYVEDEMM414

Ulrike Garanin

Director JOBLINGE umbrella organization

Principal, The Boston Consulting Group

Ludwigstraße 21

80539 Munich

Tel. +49 89 2317 4584

Mobile +49 170 334 4584

garanin.ulrike@bcg.com

JOBLINGE contacts for further information

Christina Schinz

Marketing and Communication

JOBLINGE umbrella organization

Ludwigstraße 21

80539 Munich

Tel. +49 89 2031 8064

Mobile +49 176 7214 0271

christina.schinz@joblinge.de

Appendix

16

32% of participants with vocational training in wholesale/retail and office work

0

20

40

60

80

100

6%

Hotel/hospitality

Regularly placed

participants in %

7%

Other Plant

mechanics/

mechatronics

10%

Social/health

care

11%

Office

administrator

14%

Wholesale/retail

18%

Placed in

training

100%

Warehouse

logistics

IT specialist

30%

4%

Including

• Gardner

• Interior designer

• Road builder

• Carpenter

17

A charitable stock corpora-tion assures the following advantages:

• Civic participation

• Various forms of support

• Regional integration

• Public awareness and interest

• Business-like implementation, e.g.,

– Measurable targets

– Clear quality standards

– Specified responsibilities

– Efficient processes

– Proactive communication

– Transparent performance

JOBLINGE charitable stock corporation

Salaried team

Coordinator

participants

& mentors I

Coordinator

participants

& mentors II

Coordinator

companies

Follow-up

support

Project Leader

Assistant

Voluntary supervisory board (Decision makers from business, politics, and society)

Voluntary board of directors

(Founding) stockholders

Charitable stock corporations allow for shareholding and ensure professional implementation at each location Professional support and controlling

18

Umbrella organization as contact

for all locations Core tasks of the umbrella organization

Charitable

umbrella org.

(JOBLINGE)

JOBLINGE

Bayerwald

JOBLINGE

Munich

JOBLINGE

Frankfurt/

Rhein-Main

JOBLINGE

Leipzig

JOBLINGE

Foundation

JOBLINGE

Berlin

JOBLINGE

Cologne

Future locations

Initiators and licensors

Goal: Accelerated growth, excellent service,

and transparent control

Charitable stock corporations supported by an umbrella organization that assumes control and service tasks

JOBLINGE

Ruhr

Communi-

cation ! Financing €

Growth

Instru-

ments

Quality

mgmt. Organi-

zation

Concept

developm.

19

JOBLINGE changes youths' lives What do participants say about JOBLINGE?

Affirmation and

self-confidence

Note: Names have been changed

Practice and

individual

support

"My mother was very sick over the past years, and I spent most of my time

looking after her, so I didn't have much time for school, homework, or friends.

She passed away last year.

I applied for many jobs, but I only got rejections. When I wanted to give up

entirely, my mentor and the people at JOBLINGE believed in me. Now I am

doing an apprenticeship in warehouse logistics, and I'm definitely going

through with it!" Susanne, 21, German

"Three years ago my family and I arrived here in Germany. I couldn't

speak German at all at the time, and couldn't be bothered about school. I was

sent to a youth home and I often had to deal with the police.

At JOBLINGE, my friends and I started working right away. I realized that I am

good at something after all! That's why I got my internship and now I'm doing

an apprenticeship as a retail salesman. When things don't work there, I

know JOBLINGE will still be there to help me."

Piotr, 17, Russian

20

Heinrich Alt,

Board of basic security,

Federal Employment Agency

Garrelt Duin,

Deputy Mayor, NRW

Prominent politicians support JOBLINGE as a concept to strengthen local civic involvement …

Christine Haderthauer,

Minister of State

Kerstin Liebich,

State Secretary

Stefan Grüttner,

Social Services Minister

Uwe Albrecht,

Deputy Mayor

April 2009: Opening of the Munich location June 2010: Opening of Berlin location March 2011: Opening of the Frankfurt location

April 2012: Opening of the Leipzig location February 2013: Opening of the Ruhr location April 2013: "Five years of JOBLINGE"

21

… and the media coverage is overwhelmingly positive Selected press articles and awards

Handelsblatt,

February 16, 2009:

"Companies give unemployed

youth a chance"

Süddeutsche Zeitung

April 30, 2009:

"Training Inc."

Passauer Neue Presse

March 17, 2012:

"Joblinge: Humanity counts"

FAZ

August 8, 2012:

"Different approach to

finding training positions"

Spiegel

Aug. 12, 2013:

"The new cooperative state"

2012:

"Land of Ideas" award

2010:

Award from

Wertebündnis Bayern

Frankfurter Rundschau

January 27, 2012:

"How the downward spiral

can end"

Berliner Morgenpost

August 8, 2012:

"The legend of the dumb

student"

Leipziger Volkszeitung

September 28, 2012:

"Creative JOBLINGE

youths educate Leipzig"

Der Westen

February 25, 2013:

"'Joblinge' helps Esseners start

their career "

FAZ

April 29, 2013:

"What does full

employment mean?"

2013:

"Fairness Initiative award

2013"

22

JOBLINGE—a joint initiative of