Bertelsmann – Ein international führendes Medienunternehmen · 2 January 2019 · Bertelsmann · Corporate Presentation Bertelsmann SE & Co. KGaA First-class media content, services

Entrepreneurship and Creativity

Company presentation, last updated January 2019 (FY 2017 figures)

2 January 2019 · 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 120,000 employees in some 50 countries

Corporate cultureShared aims and basic values: partnership, entrepreneurship, creativity, citizenship


Bertelsmann at a Glance

Media FundsServices Education

€17.2 billionGroup revenues

€2.6 billionOperating EBITDA

€1.2 billionGroup profit

119,089Employees

GüterslohHeadquarters


The Executive Board

Markus DohleCEO of Penguin Random House

Immanuel HermreckChief Human Resources Officer of Bertelsmann

Thomas RabeChairman and CEO of Bertelsmann

Bernd HirschCFO of Bertelsmann


Nicolas de TavernostChairman of the Executive Board of Groupe M6

Karin SchlautmannExecutive Vice PresidentCorporate Communications of Bertelsmann

Bert HabetsCEO of RTL Group

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

Gail RebuckBoard Member Penguin Random House

Julia JäkelCEO of Gruner + Jahr

Hartwig MasuchCEO of BMG

Frank SchirrmeisterCEO of Arvato SCM Solutions

Kay KrafftCEO of Bertelsmann Education Group

The Group Management Committee (GMC)

The GMC is composed of the members of the Bertelsmann Executive Board andselect executives from the Bertelsmann Group.

Axel HentreiCEO of Bertelsmann Printing Group

Madeline McIntoshChief Executive Officer of Penguin Random House U.S.


The 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


Media –Inspiring People with Creativity

8 January 2019 · Bertelsmann · Corporate Presentation8 March 2018 · Bertelsmann · Corporate Presentation

RTL Group –A Leader across Broadcast, Content and Digital

Broadcast Content Digital

€6,373mRevenues

€1,478mOperating EBITDA

12,376Employees

LuxemburgHeadquarters

• 60 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 Media is one of the biggestinternational developers and producers of a wide range of formats

− Branches in 30 countries

− Responsible for more than 12,500 hoursof broadcast content per year

− Sells more than 20,000 hours ofprogramming worldwide each year

• Leading European media companyin online video

• Leading multi-platform networks(BroadbandTV, StyleHaul, Divimove, United Screens)

• 296 YouTube channels from Fremantle Media

• Generates 35 billion online video viewsper month

• SpotX: Leading technology platform for the automated marketing of online video ads


RTL Group –A Leader across Broadcast, Content and Digital

Broadcast Content Digital


• More than 250 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

• 461 titles on the “New York Times” bestseller lists in 2017, 61 of them at number one

• More than 60 Nobel Prize laureates

• Bertelsmann‘s stake: 75 percent (25 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

€3,359mRevenues

€521mOperating EBITDA

10,615Employees

New YorkHeadquarters


Authors Bestseller 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 und digital offerings in more than 20 countries

• G+J stands for independent, credible content of the highest quality

• More than 200 prizes and awards in 2016

• G+J owns 59.9 percent of Motor Presse Stuttgart, one of the largest special-interest magazine publishers in Europe

€1,513mRevenues


10,551Employees

HamburgHeadquarters


Magazines Digital offerings Brands

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


• Management of Copyrights, recording and audiovisual rights in the Digital Age

• Rights to more than 2.5 million songs and recordings

• Represented in all major music markets

• Numerous international and domestic artists signed

BMG –The world’s number 4 in music rights

€507mRevenues


733Employees

BerlinHeadquarters


Artists (recording) Artists (publishing) Labels

BMG –The world’s number 4 in music rights

Vorführender


Artists (recording): �Left from top to bottom: Janet Jackson Scorpions Iron Maiden Kylie Minogue �Middle from top to bottom: Bryan Ferry Jack Savoretti Nickelback Blondie �Right from top to bottom: Backstreet Boys Nena Katie Melua Moby Artists (publishing): Left from top to bottom: MIA Rolling Stones Jean Michel Jarre Bruno Mars Middle from top to bottom: Robbie Williams Jess Glynne Johnny Cash Roger Waters Right from top to bottom: Will I Am Nirvana John Legend David Bowie Labels: Left from top to bottom: BMG S-Curve Records Transatlantic Records Vagrant Records Middle from top to bottom: Infectious Records Mute Records Union Square Music Sanctuary Records Right from top to bottom: Rise Records BBR Music Group Trojan Records Skint Records


Services –At Your Service, 24/7


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

• 600 million customers serviced in customer loyalty systems

• More than 1.1 billion parcels delivered a year

• 1.6 million square meters of storage space are operated by Arvato SCM Solutions worldwide

• 170 million online credit checks performed per year

€3,823mRevenues


72,931Employees



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 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

€1,681mRevenues


8,261Employees



Education –Global Education for the 21st Century


Bertelsmann Education Group –Innovative online learning offers with global potential

€189mRevenues


1,639Employees

New YorkHeadquarters

• Education as a global growth market with high overlap to Bertelsmann competencies(Content and service expertise)

• Bertelsmann Education Group focuses on vocational training in the health and technology sectors• Group unites various educational companies: − Relias (leading US provider of e-learning in the healthcare sector)− Udacity (“University of Silicon Valley“ – innovative US e-learning provider with a focus on technology and IT)− HotChalk (Services for Universities in the United States)− Straightaway (Trainings in assistant professions in health care)− Alliant (US College of Health Care Professions and Humanities)


Bertelsmann Education Group –Innovative online learning offers with global potential

~15,000

~50,000

2016 2017

New Nanodegrees

>3x

Growth in student numbers

Digital Marketing

Robotics

Deep Learning

Virtual Reality

Organic growth

More than 6,000 customers

Expansion into new segments

LearningAssessments

Analytics

Acquisition-related expansion

+17%


Funds –A Global Partner for Innovative Founders


• Four internationally active funds for participation in emerging digital start-ups and in growth regions• Investments in business areas of high relevance to Bertelsmann: digital media offers, services, e-commerce, Fintech, education

Bertelsmann Investments –Global fund network with trend scouting function for the Group

Various investments in China, including SEE (E-Commerce)

Strategic investments in India, including Pepperfry.com (E-Commerce)

Bundles corporate activities in Brazil; Investments in severalfunds and directly investedcompanies (e. g. Affero Lab)

Various investments in the USA and Europe, includingJukinMedia (Onlinevideo)

>185shareholdings in innovative comapnies

>40new start-ups in 2017

Beijing, New Delhi, São Paulo, New York


Bertelsmann Management SE

(General Partner)

Bertelsmann SE & Co. KGaA

Executive Board

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.

Backup


Financial year 2017 – Organic revenue growth, operating EBITDA at record level, Group profit above prior year

Operating EBITDA(in € m)

Revenues(in € bn)

EBITDA-Marge

15.2% 15.3%

17.0

20172016

17.2

20172016

2,568 2,636

Group profit(in € m)

Ausweis

Organisch

+1.4%

+1.7%+5.4%

1,198

2016 2017

1,137


Digital

20172011 Investments €4.6bn

Alte Struktur

Digital

Growth platforms –Foundation laid for further organic expansion


ArvatoShare increase Intervalor

Education GroupExpansion of Udacity

Bertelsmann InvestmentsExpansion of education business in cooperation with Bozano Investimentos

PenguinRandom HouseExtension of offerings in regional languages

Bertelsmann Investments Investment in EruditusExecutive Education, 6 follow-on investments in digital businesses

India ChinaEducation GroupExpansion of Relias and growth of Udacity

Bertelsmann Investments 29 new and 7 follow-on investments (Mobike and SEE among others), capital gains and 4 IPOs

10 years BAI 2018

111 Investments

15 Exits

7 IPOs

Brazil

Growth regions – Expansion of existing activities,further investments in digital and education businesses

http://images.google.com/url?sa=i&rct=j&q=&source=images&cd=&cad=rja&docid=kt6RkU3Ex6WILM&tbnid=pJVSp7nJuyr10M:&ved=0CAUQjRw&url=http://en.wikipedia.org/wiki/File:Fremantle_Media_logo.svg&ei=PRi2UauJPI_20gWTqYHAAw&bvm=bv.47534661,d.bGE&psig=AFQjCNHfouoBy9U7KEI3EplFdu08wGp6ZQ&ust=1370974651554114




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

Vorführender


Bertelsmann Essentials The Bertelsmann Essentials convey the goals and basic values of our company’s employees, executives and shareholders and build on the Corporate Constitution. It is the responsibility of our executives to spread and epitomize these values and to serve as role models. The Bertelsmann Essentials reflect the common understanding of our corporate culture and are subject to constant review, revision and improvement. Our Mission Bertelsmann is an international media corporation. We provide information, entertainment and media services to inspire people’s daily lives. We aspire to make a valuable contribution to society. We strive to be leaders in our markets and achieve returns on capital employed that guarantee growth and continuity of our corporation. Our joint efforts focus on creative content and customer relations. We seek to provide working conditions that are equitable and motivating for our employees. We commit ourselves to ensuring the continuity and ongoing progress of our corporation. Our Core Values Partnership Our corporate culture is based on a mutually-beneficial partnership between our employees and the company. Motivated individuals who identify with the company and its values are the driving force behind quality, efficiency, innovation, and growth within our corporation. The hallmarks of our participatory leadership approach are mutual trust and respect as well as the principle of delegation of responsibilities. Our employees enjoy autonomy to the greatest extent possible. They receive comprehensive information and participate in decision making and our financial success. We are committed to the professional development of our employees and seek to provide longterm employment. Entrepreneurship The principle of decentralization is at the heart of Bertelsmann’s management philosophy. It enables our employees to act with flexibility, responsibility, efficiency, and entrepreneurial freedom. Our operating businesses are run by managers who act as entrepreneurs: They enjoy considerable independence and bear full responsibility for the performance of their companies. Our executives act not only in the best interests of their individual businesses, but are also committed to the interests of the group as a whole. Creativity We provide a home for artists, authors and creative talents in all of our fields of business, promoting their creative development and commercial success. We strive for the protection of intellectual property on a worldwide basis. We promote artistic freedom and freedom of thought, the protection of democracy and human rights and the respect of traditions and cultural values. Consequently, the content we provide reflects a wide range of viewpoints and opinions. Continuous innovation and improvement, guided by customer needs and interests, are the cornerstones of our success. Citizenship The continuity and development of Bertelsmann as an independent entity is ensured by the Bertelsmann Verwaltungsgesellschaft’s (Bertelsmann Management Company) control of the majority of voting rights. In the view of our shareholders, the possession of property creates an obligation to the community. They believe that, in a market economy, a corporation derives its legitimacy from making a valuable contribution to society. The work of the Bertelsmann Stiftung – to which the majority of Bertelsmann shares has been contributed – is also guided by this principle. Our businesses are managed in accordance with the spirit and the letter of the law. They maintain high standards of ethical conduct and act responsibly toward society and the environment. Our Commitment We expect everyone at Bertelsmann to adhere to this mission and these core values.

Documents

Bertelsmann – Ein international führendes Medienunternehmen · 2 January 2019 · Bertelsmann · Corporate Presentation Bertelsmann SE & Co. KGaA First-class media content, services