Bertelsmann – Ein international führendes Medienunternehmen · languages, Hindi, Marathi, Tamil, Telugu and Gujarati •Titles occupy ~30% of the top 500 bestselling books weekly

Company presentation, last updated April 2016(FY 2015 figures)

Bertelsmann

2 April 2016 · Bertelsmann · Company presentation

First-class media content, services and education offerings

Market-leading positions in the core businesses of TV, books,

magazines, media services, print, music rights and education

International focus

A globally operating company with 117,000 employees

in some 50 countries

Corporate culture

Shared aims and basic values: partnership,

entrepreneurship, creativity, citizenship

Bertelsmann SE & Co. KGaA


Bertelsmann SE – global overview


Bertelsmann at a Glance

Revenue

Operating EBITDA

Group profit

Employees

€17.1 billion

€2.5 billion

€1.1 billion

117,249

FY 2015 figures


Sustainable positioning of Bertelsmann

• Founded in 1835 in Gütersloh, Germany

• Private shareholder structure consisting of foundations

and family

• Long-term oriented

Culture

• Strong corporate values: Creativity, entrepreneurship,

partnership, citizenship

• Entrepreneurial-empowered employees

• Creativity as part of our DNA standing at the heart of our

value creation approach

Bertelsmann heritage

• Diversified group with three pillars: media, services and

education

• International focus: Global footprint, operating in more

than 50 countries

• Sound financing: Strong ratings and sound equity ratio

Bertelsmann at a Glance


The Executive Board

Anke Schäferkordt

Co-CEO of RTL Group and CEO of

Mediengruppe RTL Deutschland

Fernando Carro

CEO of Arvato

Markus Dohle

CEO of Penguin Random House

Immanuel Hermreck

Chief Human Resources Officer

of Bertelsmann

Thomas Rabe

Chairman and CEO of Bertelsmann

Bernd Hirsch

CFO of Bertelsmann


The Group Management Committee (GMC)

Nicolas de Tavernost

Chairman of the Executive

Board of Groupe M6

Karin Schlautmann

Executive Vice President

Corporate Communications

of Bertelsmann

Guillaume de Posch

Co-CEO of RTL Group

Annabelle Yu Long

CEO of Bertelsmann China

Corporate Center and Managing

Partner of Bertelsmann Asia

Investments

Gail Rebuck

Chair of the Penguin

Random House UK Board

Julia Jäkel

CEO of Gruner + Jahr

Bertram Stausberg

Co-CEO of Bertelsmann

Printing Group

Hartwig Masuch

CEO of BMG

Andreas Krohn

CEO of Arvato CRM

Solutions

Frank Schirrmeister

CEO of Arvato SCM

Solutions

Kay Krafft

CEO of Bertelsmann

Education Group

The GMC advises and assists the Board in important questions of corporate strategy and development and on other company-wide matters


Target portfolio

Strengthening the Core1

Digital Transformation2

Growth Platforms3

Growth Regions4

Four strategic priorities

The Corporate Strategy

higher growth

more digital

more international


RTL Group –The Leading European Entertainment Network

Broadcast

• 57 TV channels and 31 radio stations

• RTL Television in Germany, M6 in

France, Antena 3 in Spain, RTL channels

in the Netherlands, Belgium,

Luxembourg, Croatia, Hungary and

RTL CBS Asia Entertainment Network

in Southeast Asia

Content

• Fremantle Media is one of the biggest

international developers and producers

of a variety of formats

Branches in

29 countries

Produces more than 10,000 hours of

TV programming a year

Distributes more than 20,000 hours of

programming a year worldwide

Digital

• Leading European media company in the

online video sector

• Leading multichannel networks

(StyleHaul, Broadband TV, Divimove)

• Generated approx. 105 billion online

video views in 2015

• SpotX: Leading technology platform for

programmatic advertising

FY 2015 figures


• Nearly 250 editorially independent imprints across five continents

• More than 15,000 new books published worldwide per year

• Sells some 800 million copies in print, audio, and

digital formats annually

• Penguin Random House had 584 titles on the “New York Times”

bestseller lists in 2015, 79 of them at number one

• Bertelsmann‘s stake: 53 percent (47 percent owned by Pearson plc)

• 45 imprints

• About 200 new books published

monthly

• More than 60 million copies in print,

audio and digital

Penguin Random House –The world’s leading trade book publisher

FY 2015 figures


Gruner + Jahr –House of content

• More than 500 media activities, magazines, and

digital offerings in over 20 countries

• G+J stands for self-contained, credible and

independent content of the highest quality

• More than 170 prizes and awards in 2015

• G+J owns 59.9 percent of Motor Presse Stuttgart,

one of Europe’s biggest special-interest magazine publishers

FY 2015 figures


• Management of copyrights, master rights and audiovisual rights in the Digital Age

• Rights to 2.5 million songs

• Represented in all major music markets

• Numerous international and domestic artists signed, including Mick Jagger, Keith Richards,

Janet Jackson, Scorpions, Robbie Williams, The Smashing Pumpkins, Nena, Andreas Bourani

• Music awards 2016: 19 Grammy Awards (84 nominations), 7 BRIT Awards (15 nominations),

prevailed in 19 of 31 ECHO categories

• Market share in music publishing 2015: number 4 worldwide; number 2 in Germany

BMG –The world’s number 4 in music rights

FY 2015 figures


Arvato –A leading international service provider

• Service portfolio: marketing and CRM services, supply chain management,

financial services, IT services

• more than 650 million shipments per year

• 40 million customers serviced in customer loyalty systems

• 100 million online credit checks performed per year

• Runs more than 70 online shops for numerous international fashion brands

FY 2015 figures


Bertelsmann Printing Group –Europe’s Biggest Printing Group

• Produces books, magazines, catalogues, 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 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

FY 2015 figures


Bertelsmann Education Group –Innovative online learning offers with global potential

E-Learning in the Technology sector

• Innovative online learning provider

(“University of Silicon Valley”)

• Graduates in 168 countries;

“nanodegrees” in cooperation with

Google, Facebook, Amazon

• Valued at >1 billion USD

E-Learning in the Healthcare sector

• Leading U.S. provider of e-learning

in the healthcare sector

• >2,500 online courses, >2.75 million users,

>28 million courses completed per year

• Building a global e-learning company

Online services for Universities

• Online services provider for universities;

curriculum development with the

universities, marketing, student

recruitment

• 6,600 students; 7 partner universities

• Building the services business with a

focus on premium universities and

healthcare academiesFY 2015 figures


• Several international investment platforms for acquiring stakes in up-and-coming startups

in the digital domain and in growth regions; in all, shareholdings more than 100 innovative companies

• Bertelsmann Asia Investments (BAI) has approx. 50 investments in China;

Focus on New Media, Internet, Online Education

• Bertelsmann India Investments (BII) has several strategic holdings in India,

including Pepperfry.com (e-commerce) and iNurture (education)

• Bertelsmann Brazil Investments (BBI) bundles corporate activities in Brazil;

holdings in several funds as well as direct investments in companies (incl. Affero Lab)

• Bertelsmann Digital Media Investments has approx. 40 shareholdings in the United States and Europe,

including JukinMedia (online video) and Skimlinks (affiliate marketing); serves as a trend scout for the Group

Bertelsmann Investments –A global network of funds

FY 2015 figures


Growth regions – Expansion of existing activities; investments in digital businesses and education; revenue target €1bn

+

Corporate Investments

BAI with 18 new investments –

more than in any other year

before; significant increase of

market value indications

RTL Group

Investment in a multi-channel

network to strengthen the digital

businesses


BII investments in digital and

education business models

(follow-on investments and new

investments)

Arvato

Investment in financial services

provider Intervalor


BBI investments in

education

+

Brazil ChinaIndia

FY 2015 figures

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Bertelsmann in India


DELHI/NCR1)

Mumbai

Bangalore

Corporate Center

NCR = National Capital Region (including Noida and Gurgaon suburbs)

Bertelsmann in India

http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCJCJjIG97scCFdgJjgod0SQLLw&url=http://www.bertelsmann.com/divisions/arvato/&psig=AFQjCNHGHoeULlV1-AXJeILCdEyuUaHwmg&ust=1442043554779158







Founded: 2009

Office location: Mumbai

Employees: 31

RTL Group: FremantleMedia in India –A country leader in TV production

FremantleMedia India reaches 110 million households over 425 channels in the country. Its core business is production of content spanning

fiction, non-fiction and reality TV for television and digital, as well as licensing key formats to neighbouring territories such as Nepal, Bangladesh,

Pakistan and Maldives

• Production of 500+ hours of programming for broadcasters

such as Star, Colors, Sony, Zee, NGC and regional channels

• India’s Digital Superstar is the production of India’s first

digital talent show; currently at 7.5k+ viewership, 3.6m+

subscribers and 3.6m+ views

Indian versions of top worldwide franchises: Home-grown formats:


RTL Group: BBTV – Yoboho –Global kids MCN

• HooplaKidz is Yoboho’s most popular brand and is the #1 digital-first

producer for kids content and family entertainment, with over 10,000

original content videos online.

• The HooplaKidz network works on licensing, premium exposure and offers

opportunities to co-produce. Captain

discovery

Annie, Ben

& Mango

Derrick &

Debbie

Broadband TV is the leading multi-platform network (MPN) worldwide and it develops an ecosystem of household media brands empowered by

smart technology. Yoboho is an India-based producer and publisher of video content for kids and provides a series of animated nursery rhymes

and stories produced to entertain and educate children. It was launched in 2007 and acquired by BBTV in 2015 which is part of the RTL group.


Penguin Random House in India –The region’s leading international trade book publisher

VISION: “Stories and ideas to entertain and inform everyone, everywhere”

• ~150 employees with headquarters in Gurgaon, Delhi and sales representation in Mumbai,

Bangalore, Chennai, Kerala and Kolkata

• ~240 new adult titles and ~40 new children’s titles each year across genres

• Over 3000+ backlist titles readily available

• 2000+ titles currently available in digital format

• Over 40,000 distributed titles from our international PRH companies and agency clients

• Publisher with the largest digital footprint in the region – 250,000+ engaged customers across

Facebook, Twitter and Instagram

• Country’s largest English language publisher with a co-publishing programme in local

languages, Hindi, Marathi, Tamil, Telugu and Gujarati

• Titles occupy ~30% of the top 500 bestselling books weekly

• Proud publishers of the region’s finest writers who have won prizes (e.g. the Nobel Prize,

Magsaysay Award, Man Booker International Prize, the DSC Prize for South Asian Literature)

Penguin Random House India

Penguin Random House India is a consumer-facing publishing house committed to providing the very best home for the region’s leading talents.

Based on operational excellence in all areas, it aims to connect its authors to their widest possible readership – whether in print or digitally.

4 key strategy pillars

Author-driven,

consumer-focused

publishing

Continuous

operational

excellence

Consumer reach and

engagement

Business model

diversification


DK in India – The world’s leading illustrated reference publisher of distinctive, highly visual products for adults and children

• Titles in 62+ languages and in 87+ countries including India

• Established in London in 1974 as an independent imprint is part of the

Penguin Random House group, the world’s largest trade publisher

• DK’s global range of print products is also repurposed into digital products

across multiple platforms for web, tablet, and mobile devices

About DK

The aim to 'inform, enrich, and entertain' through content that is made 'better by design'.

In 1998 DK began editorial operations in Delhi to support its Global

publishing programme. And in 2013 started a local programme with a special

focus on the children’s segment

DK in India

Young Chefs, the first local tittle for India

in 2013 – in collaboration with Vikas

Khanna

Eyewitness

Gandhi (2014)

100 Indians who

Made History (2014)

Shaken and

Stirred (2015)

Online knowledge website for children

• Interactive global website that supports home and school

learning by offering children’s information and teacher and

parents support

• Available online/app/epub/pdf/video/print

• Schools and students engagement through online quizzes

The DK Quiz – a branding initiative

• School-level knowledge programme that reached 7,800+

students in 45 schools across the Delhi-NCR region in 2015

• Winning teams from each school battled it out in the Grand

Finale

• #TheDKQuizOnline is an online quiz and the winner wins a

wildcard entry into the Grand Finale


Industries served

Gurgaon

Mumbai

Bangalore

Arvato in India –A market-leading solution provider for consumer-oriented industries

Foundation 2003

Headquarter Gurgaon

Employees 2000+

arvato India Overview

Contact Center

Employees: 1600+

Presence: Gurgaon and Mumbai

Services:

• Customer Service

• Technical Support

• Product Support

• A/R Management

• Back Office

Business units

Marketing Services

Employees: 400+

Presence: Gurgaon, Mumbai and

Bangalore

Services:

• Tele-sales and Lead Management

• Events & Promotions

• Campaign Management

• Loyalty and Rewards

• Relationship Marketing

• Digital Campaign Management

• Database Mgnt, Mining & Analytics

Supply Chain Management

Warehouse Space: 20,000+ Sq. Ft

Presence: Gurgaon

Services:

• Order Management

• Warehouse Management

• Returns Management

• After Sales Service

• Packaging & Distribution

• Carrier Management

E-commerce Telco Airline & Travel Automotive IT & High- TechMedia /

Entertainment


Bertelsmann India Investments –Strong anchor investments

Bertelsmann India Investments (BII) is the strategic investment arm of Bertelsmann SE & Co. KGaA in India. It focuses on investing in

pioneering companies in the digital, education, media and services sectors, which are developing new technologies, business models and

visions of the future. It focuses on early stage, as well as growth stage investments.

Portfolio:

India’s leading online

furniture marketplace

India’s leading real

estate marketplace

offering a one stop shop

for total home buying

experience

India’s music streaming

service

Leading Global

Education Technology

Provider

Pioneer in career-ready

and industry relevant

formal education

Early to mid-stage,

India focused venture

fund

Digital Nirvana Fund

Company Ltd

The only fund focused

on investing in human

capital transformation in

Asia

India’s leading seller

enablement platform

Indian social fashion

network

Indian lending platform

for SMEs

Technology enabled

budget hotel chain

Digital Education

Media Services

Focus on:

Last updated August 2016


Appendix


Bertelsmann takes responsibility – for its employees, for the quality of

its media and services, and for the impact its business operations

have on society and the environment. This is an integral part of

Bertelsmann’s corporate culture.

Corporate culture


Bertelsmann

Management SE(General Partner)

Bertelsmann

SE & Co. KGaA

Executive

Board

Foundations(Bertelsmann Stiftung,

Reinhard Mohn Stiftung,

BVG-Stiftung)

The Mohn Family

Bertelsmann

Verwaltungs-

gesellschaft(BVG)

Management

80.9%

Capital

19.1%

Capital

100%

Control of

voting rights

Shareholder structure


Christiane Sussieck

Chairwoman of the Corporate Works Council,

Bertelsmann SE & Co. KGaA, Vice Chairwoman of

Bertelsmann SE & Co. KGaA Corporate Works Council

Kai Brettmann

Chairman of the RTL Group European Works Council,

Chairman of the Mediengruppe RTL Deutschland

Corporate Works Council

Prof. Dr. Ing. Joachim Milberg

Vice Chairman of the Supervisory Board, former

Chairman of the Supervisory Board, BMW AG,

Shareholder Bertelsmann Verwaltungsgesellschaft

mbH

Prof. Dr. Ing. Werner J. Bauer

Former Head of Innovation, Technology, Research and

Development, Nestlé AG, Chairman of the Supervisory

Board of Nestlé Deutschland AG, Shareholder

Bertelsmann Verwaltungsgesellschaft mbH

Dr. Wulf H. Bernotat

Former Chairman of the Executive Board, E.ON AG,

Chairman of the Supervisory Board Vonovia SE

Murat Cetin

Chairman of the Works Council, Arvato Direct Services

Dortmund GmbH, Chairman of the General Works

Council, Arvato CRM II

Helmut Gettkant

Chairman of Bertelsmann SE & Co. KGaA Corporate

Works Council

Ian Hudson

Chief Executive, Penguin Random House International

(English Language) / Deputy Chief Executive Penguin

Random House UK

Gigi Levy-Weiss

Angel Investor

Liz Mohn

Vice Chairwoman of the Executive Board, Bertelsmann

Stiftung, Chairwoman of the Board, Bertelsmann

Verwaltungsgesellschaft mbH

Hans Dieter Pötsch

Chairman of the Executive Board, Volkswagen AG,

Chairman of the Executive Board and CFO of Porsche

Automobil Holding SE

Kasper Rorsted

Former Chairman of the Executive Board, Henkel AG &

Co. KGaA

Bodo Uebber

Member of the Executive Board, Daimler AG

Members of the Executive Board of Bertelsmann Management are appointed and overseen by the Supervisory Board. The Supervisory Board of

Bertelsmann SE & Co. KGaA monitors the management of the company by Bertelsmann Management SE.

Shareholder Works Council Independent

Bertelsmann Management SE & Co. KGaA – Supervisory Board

Christoph Mohn

Chairman of the Supervisory Board, Chairman of the

Reinhard Mohn Foundation Executive Board,


mbH

Dr. Brigitte Mohn

Chairwoman of the Board of Trustees, German Stroke

Foundation, Member of the Executive Board,

Bertelsmann Stiftung and Member of the Supervisory

Board, Bertelsmann SE & Co. KGaA


Christoph Mohn

Chairman of the Supervisory Board, Chairman of the

Reinhard Mohn Foundation Executive Board,

Managing Director Christoph Mohn Internet Holding

GmbH, Shareholder Bertelsmann


Prof. Dr. Ing. Joachim Milberg

Vice Chairman of the Supervisory Board, former

Chairman of the Supervisory Board, BMW AG,


mbH

Prof. Dr. Ing. Werner J. Bauer

Former Head of Innovation, Technology, Research and

Development, Nestlé AG, Chairman of the Supervisory

Board of Nestlé Deutschland AG, Shareholder

Bertelsmann Verwaltungsgesellschaft mbH

Dr. Wulf H. Bernotat

Former Chairman of the Executive Board, E.ON AG,

Chairman of the Supervisory Board Vonovia SE

Gigi Levy-Weiss

Angel InvestorDr. Brigitte Mohn

Chairwoman of the German Stroke Foundation,

Member of the Executive Board, Bertelsmann Stiftung

and Shareholder, Bertelsmann


Liz Mohn

Vice Chairwoman of the Executive Board, Bertelsmann

Stiftung, Chairwoman of the Board, Bertelsmann


Hans Dieter Pötsch

Chairman of the Executive Board, Volkswagen AG,

Finance and Controlling division, Chief Financial

Officer, Porsche Automobil Holding SE

Kasper Rorsted

Chairman of the Executive Board, Henkel AG & Co.

KGaA

Members of the Executive Board of Bertelsmann Management are appointed and overseen by the Supervisory Board. The Supervisory Board of

Bertelsmann SE & Co. KGaA monitors the management of the company by Bertelsmann Management SE.

Bertelsmann Management SE – Supervisory Board

Shareholder Independent

Bodo Uebber

Member of the Executive Board, Daimler AG


Bertelsmann Foundation: Dedication to serving the common good

The Bertelsmann Stiftung is an independent, non-profit foundation located in Germany 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 beginings of long-term commitment to society

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.

Topics

Strengthening economy Improving education Advancing society Vitalizing culture Shaping democracy Promoting health

Bertelsmann Foundation

Bertelsmann India Corporate CenterWindsor IT Park – Tower B, 9th floor, A-1 Sector 125, Noida – 201301+91 120 4517 413www.bertelsmann.in

Documents

Bertelsmann – Ein international führendes Medienunternehmen · languages, Hindi, Marathi, Tamil, Telugu and Gujarati •Titles occupy ~30% of the top 500 bestselling books weekly