Bertelsmann – Ein international führendes Medienunternehmen€¦ · • Service portfolio: CRM services, supply chain management, financial services, IT services • Developed

Company presentation, last updated July 2020 (FY 2019 figures)

Building Alliances

2 July 2020 · Bertelsmann · Corporate Presentation

Bertelsmann SE & Co. KGaA

First-class media content, services and education offeringsMarket-leading positions in the core businesses of TV, books, magazines, music, services, print and education

International focusA globally operating company with 126,446 employees in some 50 countries


Bertelsmann at a Glance

€18 billionGroup revenues

€2.9 billionOperating EBITDA

€1.1 billionGroup profit

126,446Employees

Media InvestmentsServices Education

GüterslohHeadquarters


The Executive Board

Markus DohleCEO of Penguin Random House

Immanuel HermreckChief Human Resources Officer of Bertelsmann

Thomas RabeChairman & CEO of Bertelsmannand CEO of RTL Group

Bernd HirschCFO of Bertelsmann


Nicolas de TavernostChairman of the Executive Board of Groupe M6

Karin SchlautmannExecutive Vice PresidentCorporate Communicationsof Bertelsmann

Annabelle Yu Long CEO of Bertelsmann China Corporate Center and Managing Partner of Bertelsmann Asia Investments

Gail Rebuck Board Member Penguin Random House

Julia JäkelCEO of Gruner + Jahr

Hartwig MasuchCEO of BMG

Frank SchirrmeisterCEO of Arvato Supply Chain Solutions

Kay KrafftCEO of Bertelsmann Education Group

The Group Management Committee (GMC)

Madeline McIntoshCEO of Penguin Random House U.S.

Shobhna MohnExecutive Vice President Growth Regions Strategyand Bertelsmann Investments

Rolf HellermannCEO of Arvato Financial Solutions

Bernd ReichartCEO of Mediengruppe RTL Deutschland

Das GMC is composed of the members of the Bertelsmann Executive Boardand select executives from the Bertelsmann Group.

Dirk KemmererCEO of Bertelsmann Printing Group

Elmar Heggen COO and Deputy CEO of RTL Group


Corporate Strategy –Strategic Framework

Four Strategic Priorities

Strengthening the Core

Digital Transformation

Growth Platforms

Growth Regions

1

2

3

4

Target Portfolio

Higher Growth

More Digital

More International

More Diversified

Financial Performance


The Bertelsmann Essentials

CreativityCreativity is vital to us. We celebrate and nurture creativity:encouraging the critical and imaginative thinking thatchallenges convention and unlocks opportunity. Our minds areopen and curious and we encourage and develop thepassionate pursuit of fragile ideas. We know thatexperimentation is part of the creative process and thatinnovation best serves our customers and markets. Diversityis crucial. We actively seek out different viewpoints andencourage communication and collaboration.

Entrepreneurial freedom provides us with the vision andcourage to take risks, the decisiveness and perseverance to getthings done, and to be accountable for our actions. Because weact responsibly, we can be proud of our entrepreneurialachievements. We never lose sight of our customers. Mutualrespect and trust between every colleague and partner iscrucial. Collaborating makes us all stronger. We invest in ourpeople, empower them and provide fair working conditions.We’re mindful of the impact we have on society andenvironment, and we seek to make a positive difference.

Entrepreneurship


RTL Group –A Leader Across Broadcast, Content and Digital

Broadcast Content Digital

€6,651mRevenues

€1,439mOperating EBITDA

16,264Employees

LuxemburgHeadquarters


• 68 TV channels and 30 radio stations − RTL Television in Germany− M6 in France− Antena 3 in Spain− RTL channels in the Netherlands,

Belgium, Luxembourg, Croatia and Hungary

• Fremantle is one of the biggest international developers and producers of a wide range of formats − Branches in over 30 countries− Responsible for more than 12,800 hours

of TV programming a year− Distributes more than 20,000 hours of

programming in over 200 territories− Over 400 titles on air or in production at

any given time

• Leading European media company in digital video

• 8 streaming platforms• Leading digital talent networks

(BroadbandTV, Divimove) • 300 YouTube channels from Fremantle• Smartclip: Leading advertising technology

platform


RTL Group –A Leader Across Broadcast, Content and Digital



• More than 320 editorially independent imprints across six continents• More than 15,000 new books published worldwide per year• Sells more than 600 million copies in print, audio and digital formats annually• 496 titles on the “New York Times” bestseller lists in 2019, 61 of them at #1• More than 80 Nobel Prize laureates

Penguin Random House –The World’s Leading Trade Book Publisher

€3,636mRevenues

€561mOperating EBITDA

10,663Employees

New YorkHeadquarters


Authors Bestsellers Publishers

Penguin Random House –The World’s Leading Trade Book Publisher

Vorführender

Präsentationsnotizen

Authors: Left from top to bottom: Khaled Hosseini is an American writer and doctor of Tajik descent from Afghanistan. (“The Kite Runner”) Malcolm Gladwell is a Canadian journalist, author and business consultant. Gladwell is the author of two bestsellers: “The Tipping Point – How Little Things Can Make A Big Difference” and “Blink – The Power Of Thinking Without Thinking” Sir Ahmed Salman Rushdie is an Indian-British writer. He is one of the most important representatives of contemporary literature. He enriches his stories with elements from the world of fairy tales. Center from top to bottom: E. L. James achieved success with the “Shades of Grey” trilogy of erotic novels. Over 125 million copies of the trilogy have been sold worldwide. The first novel is regarded as the fastest-selling paperback ever, even ahead of the Harry Potter paperbacks. Ken Follett is a British writer who writes in the style of the classic thriller. (“The Pillars of the Earth”) Jamie Oliver is a British chef and cookbook author. His nickname “The Naked Chef” dates back to his first cooking show and alludes to the simple ingredients and preparation of his recipes. Right from top to bottom: Danielle Steel is an American writer. With more than 530 million books sold she is one of the world’s most successful writers in terms of sales figures. Toni Morrison is an American writer. She is one of the most important representatives of African-American literature and was awarded the 1993 Nobel Prize for Literature. Nora Roberts is an American writer. She is considered one of the world’s most successful romance authors.


Gruner + Jahr –One of Europe’s Largest Magazine Publishers

• More than 500 magazines and digital offerings in more than 20 countries • G+J stands for independent, credible content of the highest quality• G +J products include brands such as “Stern,” “Geo,” “Brigitte,” “Essen & Trinken,” “Schöner Wohnen” and “Barbara”• Territory, Germany’s largest communications agency for brand content, is a member of the G+J family

€1,355mRevenues


9,273Employees

HamburgHeadquarters


Magazines Digital Offerings Brands

Gruner + Jahr –One of Europe’s Largest Magazine Publishers


• A single, integrated platform for the world, covering music publishing and recordings

• 19 offices in 12 core music markets • Relentless focus on fairness, transparency

and service• More than 3 million songs and recordings • +25 billion music streams per year• Named one of The World’s Most Innovative

Companies by Fast Company in 2020

BMG –The World’s Fourth-biggest International Music Company

€600mRevenues


904Employees

BerlinHeadquarters

Facts Artists & Songwriters Services

• Many of the most renowned and successful catalogs in popular music history

• International and domestic artists including Avril Lavigne, KSI, Kontra K, Jason Aldean, Dido, Kylie Minogue, Blanco Brown, LP, andRun The Jewels

• International and domestic songwriters including Mick Jagger and Keith Richards, Erika Ender, Lewis Capaldi, Ringo Starr, Patricia Kelly, Dianne Warren, and Kamille

• Music Publishing• Recordings• Production Music• Artist Management• Films • Books• Neighboring Rights• Podcasts


Current Projects Classic Repertoire

BMG –The World’s Fourth-biggest International Music Company

Partners

Vorführender


Current Projects Left from top to bottom: Avril Lavigne KSI Lil Dicky LP Middle from top to bottom: Lewis Capaldi Run The Jewels Kontra K Blanco Brown Right from top to bottom: Jason Aldean Kamille Katie Melua Seeed Classic Repertoire Left from top to bottom: Brian Ferry Rolling Stones John Legend Bruno Mars Middle from top to bottom: Nena Kylie Minogue Johnny Cash Scorpions Right from top to bottom: Will I Am Nirvana Ringo Starr David Bowie


Arvato –A Leading International Service Provider

• Service portfolio: CRM services, supply chain management, financial services, IT services• Developed more than 70 online shops for numerous international fashion brands• IT partner of top technology providers such as Amazon, Google, Microsoft and SAP• More than 120 million parcels delivered a year• More than 85 distribution centers are operated by Arvato Supply Chain Solutions worldwide• 170 million online credit checks performed per year

€4,175mRevenues


77,342Employees



Bertelsmann Printing Group –Europe’s Biggest Printing Group

• Produces books, magazines, catalogs, brochures and calendars• Gravure and offset printing plants in Germany and the UK and in the United States• Offers services in the fields of media creation, replication and digital marketing solutions• Together, Bertelsmann’s printing companies print about 1.6 million tons of paper a year• Around 2 million books produced daily• More than 3 billion brochures printed per year

€1,568mRevenues


7,866Employees



Bertelsmann Education Group –Innovative Digital Learning Offers with Global Potential

€333mRevenues


1,834Employees

New YorkHeadquarters

• Focus on education as a global growth market; high overlap with Bertelsmann competencies (content and service expertise)

• Bertelsmann Education Group provides continuing education solutions in the health and technology sectors • The Group comprises various companies:

Training, skills development, and assessment in the healthcare industry

Innovative e-learning solutions to prepare students for technology jobs of the future

Provider of online services for higher education institutions in the US

On-campus and online university for healthcare professions and humanities


• Four internationally active funds with investments in emerging digital startups as well as in growth regions • More than a billion euros invested in digital media, services, e-commerce, Fintech, and education since 2006 • The Digital Partners team promotes cooperation between Bertelsmann divisions and tech startups • Regionally complemented with fund investments in Europe, Africa, and South East Asia

Bertelsmann Investments –A Global Network of Funds that Serves as a Trend Scout for the Group

Largest portfolio with more than 120 holdings, including the streaming provider NetEase Cloud Music

Established Series B/C investor in India, e.g. with holdings in the Fintech startups Lendingkart and Eruditus

Direct holdings and fund investments with a focus on education, including the education provider Afya

Oldest fund (since 2006), with numerous holdings mainly in the USA, including FloSports

Beijing, New Delhi, São Paulo, New York

> 230Active portfolio

holdings

> 50Successful exits


Bertelsmann Management SE

(General Partner)

Bertelsmann SE & Co. KGaA

ExecutiveBoard

Foundations(Bertelsmann Stiftung,

Reinhard Mohn Stiftung, BVG-Stiftung)

The Mohn Family

BertelsmannVerwaltungs-gesellschaft

(BVG)

Management

80.9 %Capital

19.1 %Capital

100 %Control of

voting rights

Shareholder Structure

Vorführender


Bertelsmann SE & Co. KGaA is a privately held Kommanditgesellschaft auf Aktien (KGaA; partnership limited by shares). 80.9 percent of the capital shares in Bertelsmann SE & Co. KGaA are held indirectly by foundations (Bertelsmann Stiftung, Reinhard Mohn Stiftung, BVG-Stiftung), and 19.1 percent are held indirectly by the Mohn family. All voting rights at the General Meeting of Bertelsmann SE & Co. KGaA and Bertelsmann Management SE (general partner) are controlled by Bertelsmann Verwaltungsgesellschaft (BVG). The Mohn Family The Bertelsmann / Mohn Family is the founding family of the company. The publisher C. Bertelsmann Verlag was founded by Carl Bertelsmann in 1835; Reinhard Mohn, in the fifth generation of the founding family, took over the management of the company in 1947. Under his leadership Bertelsmann developed from a medium-sized printing and publishing company into one of the largest internationally active media companies. Reinhard Mohn transferred a large part of his capital share in Bertelsmann AG (now Bertelsmann SE & Co. KGaA) to the Bertelsmann Stiftung in 1993. Today, the Mohn Family owns 19.1 percent of the capital shares in Bertelsmann SE & Co. KGaA. Bertelsmann Verwaltungsgesellschaft mbH (BVG) BVG’s mandate is to ensure continuity in Bertelsmann SE & Co. KGaA’s development and to manage the shareholder interests of the non-profit Bertelsmann Foundations and of the Mohn family. BVG is committed to safeguarding, implementing and enhancing the corporate culture developed by Reinhard Mohn. BVG controls 100 percent of the voting rights in the annual general meeting of Bertelsmann SE & Co. KGaA, which it exercises for these purposes as well as 100 percent of the voting rights in the annual general meeting of Bertelsmann Management SE. The Bertelsmann Stiftung The Bertelsmann Stiftung is an independent, non-profit foundation which identifies social problem areas for which it develops and implements solutions. Its projects focus on education, economic and social affairs, health and international understanding. The Bertelsmann Stiftung was founded in 1977 by Reinhard Mohn, the former Chief Executive Officer and owner of the majority share of Bertelsmann, in order to continue the socio-political, cultural and social commitment of the founding family, Bertelsmann / Mohn, and to guarantee the continuity of Bertelsmann. Towards this purpose, Reinhard Mohn transferred a large part of the capital share in Bertelsmann AG (now Bertelsmann SE & Co. KGaA) to the Bertelsmann Stiftung in 1993.

21 July 2020 · Bertelsmann · Corporate Presentation21

Bertelsmann is engaged in a variety of cultural activities, both in Germany and internationally. Culture@Bertelsmann encompasses exhibitions, literary formats, concerts, and efforts to preserve Europe’s cultural heritage. This commitment is closely linked to Bertelsmann’s tradition and creative products.

Culture@Bertelsmann

• Bertelsmann restores and digitizes artefacts from 200 years of Italian opera history

• Most valuable privately owned music archive in the world

• Archivio for all: Organization of international exhibitions, support of Berliner Operngruppe for opera performances, archive holdings are freely accessible online

• Silent film festival hosted by Bertelsmann and UFA

• Inspires thousands of film fans in Berlin, Brussels, New York and Paris

• Bertelsmann sponsors the restoration of important silent films by the Murnau Foundation

• Cooperation with ARTE in Berlin

• Germany's most successful literary format • More than 2,900 discussions with authors to

date• Crowd puller at book fairs, including

international ones• Cooperation with ZDF, Deutschlandfunk Kultur,

and 3Sat

Exhibitions• Treasures from the Ricordi Archive shown in the

U.S. for the first time: The exhibition “Verdi: Creating Otello and Falstaff” at the New York Morgan Library & Museum attracted more than 70,000 opera fans by the end of 2019

Vorführender


Archivio Storico Ricordi: The Archivio Storico Ricordi in Milan, which has been part of Bertelsmann since 1994, documents 200 years of Italian opera history: thousands of original scores from more than 600 operas (including Verdi, Puccini and Donizetti), plus libretti, historical photographs, costume drawings, stage sets, and business letters. Bertelsmann is indexing, restoring and digitizing these treasures and opening the archive to a broad public, including with the Collezione Digitale, opera exhibitions around the world, and performances of rare operas. UFA Film Nights: With the UFA Film Nights, Bertelsmann and UFA have established a silent film festival that now attracts thousands in Berlin and Brussels, as well as in other big cities. It showcases famous films from a time when pictures had only just started moving, some of them restored and digitized with Bertelsmann funds. In Berlin, for example, the UFA Film Nights present cinema magic under the stars, against a spectacular backdrop and accompanied by live music, on three evenings every summer. The Blue Sofa: Is seen as a “gateway to fame” for writers at the book fairs in Frankfurt/Main and Leipzig. To date, more than 2,700 authors have taken a seat here to talk about their books, including Nobel laureates in literature and many other celebrities. Established 20 years ago with partners, today Bertelsmann’s partners are: ZDF, Deutschlandfunk Kultur, and 3sat.

22 July 2020 · Bertelsmann · Corporate Presentation22

Events@Bertelsmann

Once a year, Bertelsmann brings together politicians, writers, entertainers, film stars and other celebrities at its representative premises in Berlin for a world-class party. Hosts Thomas Rabe and Liz Mohn personally welcome every one of the 600 guests on the red carpet.

Every two years, Bertelsmann and Liz Mohn, founder and president of the German Stroke Foundation, host the Rosenball charity gala in Berlin. Many millions of euros have already been raised in this way to help combat strokes. Around 600 guests enjoy a glamorous evening with live shows, dancing, and a raffle.

Backup


Group Key Financials 2019 –Revenues €18bn, Operating EBITDA at record level of €2.9bn

Operating EBITDAin € m

Revenuesin € bn

20192018

17.7 18.02,9091)

2018 2019

2,586

Group profitin € m

Growth +2.0%

1,104

2018 2019

1,091

Margin 14.6% 16.1%

1) Before new accounting standard IFRS 16 “Leases“ (estimate): €2,634m

€1bn


Group Strategy –Significant Strategic Progress Made in 2019

Strengthening the Core

Founding ofMajorel

Digital Transformation

Implemented Data and Technology agenda

Growth Platforms

Organicgrowth

Growth RegionsExpansion of book publishing business

organically and through acquisitions

Collaboration in the areas of content, advertising, and technology

Digital

Agreed full acquisition of

Penguin Random House

Expansion of video-on-demand

and ad tech offerings

Fund investments andAfya IPO

Digital

1 2 3 4


Creation and distribution of content across all media genres

8,000 creative minds

Content Advertising Technology

Joint ad sales/marketingReaches 99% of the German population

Group-wide bundling of resources and know-howPursuit of a coordinated

tech agenda

Building Alliances –Collaboration in the Areas of Content, Advertising, and Technology

Documents

Bertelsmann – Ein international führendes Medienunternehmen€¦ · • Service portfolio: CRM services, supply chain management, financial services, IT services • Developed