The New

Bertelsmann
Company presentation, last updated October 2016
(FY 2015 figures)
Bertelsmann SE & Co. KGaA

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 114,000 employees
in some 50 countries

Corporate culture
Shared aims and basic values: partnership,
entrepreneurship, creativity, citizenship

2 October 2016 Bertelsmann Company presentation

 Bertelsmann at a Glance

Revenue 17.1 billion

Operating EBITDA 2.5 billion
Group profit 1.1 billion
Employees 117,249

3 October 2016 Bertelsmann Company presentation

 The Executive Board

Thomas Rabe Fernando Carro Markus Dohle

Chairman and CEO of Bertelsmann CEO of Arvato CEO of Penguin Random House

Immanuel Hermreck Bernd Hirsch Anke Schferkordt

Chief Human Resources Officer CFO of Bertelsmann Co-CEO of RTL Group and CEO of
of Bertelsmann Mediengruppe RTL Deutschland

4 October 2016 Bertelsmann Company presentation

 The Group Management Committee (GMC)

Julia Jkel Kay Krafft Andreas Krohn Annabelle Yu Long Hartwig Masuch
CEO of Gruner + Jahr CEO of Bertelsmann CEO of Arvato CRM CEO of Bertelsmann CEO of BMG
Education Group Solutions China Corporate Center and
Managing Partner of
Bertelsmann Asia Investments

Guillaume de Posch Gail Rebuck Frank Schirrmeister Karin Schlautmann Nicolas de Tavernost
Co-CEO of RTL Group Chair of the Penguin CEO of Arvato SCM Executive Vice President Chairman of the Executive
Random House UK Board Solutions Corporate Communications Board of Groupe M6
of Bertelsmann

5 October 2016 Bertelsmann Company presentation

 The Corporate Strategy

Target portfolio Four strategic priorities

1 Strengthening the Core

more digital

2 Digital Transformation
more international

3 Growth Platforms
higher growth

4 Growth Regions

6 October 2016 Bertelsmann Company presentation

RTL Group
The Leading European Entertainment Network

Broadcast Content Digital

60 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
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
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

7 October 2016 Bertelsmann Company presentation

RTL Group
The Leading European Entertainment Network

Broadcast Content Digital

8 October 2016 Bertelsmann Company presentation

Penguin Random House
The worlds leading trade book publisher

Nearly 250 editorially independent imprints across five continents

More than 15,000 new books published worldwide per year

Sells more than 800 million copies in print, audio, and

digital formats annually
45 imprints
Penguin Random House had 584 titles on the New York Times
bestseller lists in 2015, 79 of them at number one About 200 new books published
monthly
Bertelsmanns stake: 53 percent (47 percent owned by Pearson plc)
More than 60 million copies in print,
audio and digital

9 October 2016 Bertelsmann Company presentation

Penguin Random House
The worlds leading trade book publisher

Authors Bestseller Publishers

10 October 2016 Bertelsmann Company presentation

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 Europes biggest special-interest magazine publishers

11 October 2016 Bertelsmann Company presentation

Gruner + Jahr
House of content

Magazines Digital offerings Brands

12 October 2016 Bertelsmann Company presentation

BMG
The worlds number 4 in music rights

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

13 October 2016 Bertelsmann Company presentation

BMG
The worlds number 4 in music rights

Artists (recording) Artists (publishing) Labels

14 October 2016 Bertelsmann Company presentation

Arvato
A leading international service provider

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

financial services, IT services

1.1 billion parcels delivered a 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

15 October 2016 Bertelsmann Company presentation

Bertelsmann Printing Group
Europes 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, Bertelsmanns 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

16 October 2016 Bertelsmann Company presentation

Bertelsmann Education Group
Innovative online learning offers with global potential

E-Learning in the Healthcare sector E-Learning in the Technology sector Online services for Universities

Leading U.S. provider of e-learning Innovative online learning provider Online services provider for universities;
in the healthcare sector (University of Silicon Valley) curriculum development with the
>2,500 online courses, >2.75 million users, Graduates in 168 countries; universities, marketing, student
>28 million courses completed per year nanodegrees in cooperation with recruitment

Building a global e-learning company Google, Facebook, Amazon 6,600 students; 7 partner universities
Valued at >1 billion USD Building the services business with a
focus on premium universities and
healthcare academies
17 October 2016 Bertelsmann Company presentation
Bertelsmann Investments
A global network of funds

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

18 October 2016 Bertelsmann Company presentation

 Shareholder structure

Executive
Board
Bertelsmann
Management SE
(General Partner)

19.1%
The Mohn Family
Capital

Bertelsmann
100%
Management Verwaltungs-
Control of
voting rights
gesellschaft
(BVG)
Foundations
(Bertelsmann Stiftung,
80.9%
Reinhard Mohn Stiftung, Capital
BVG-Stiftung)

Bertelsmann
SE & Co. KGaA

19 October 2016 Bertelsmann Company presentation

Backup
Financial year 2015,: Highest revenues since 2007,
highest operating EBITDA and Group profit since 2006

Revenues (in bn) Operating EBITDA (in m) Group profit (in m)

EBITDA margin
+2.8% 14.2% 14.5%
+93.7%
16.7 17.1
2,374 2,485 1,108

572

2014 2015 2014 2015 2014 2015

Note: 2014 restated

21 October 2016 Bertelsmann Company presentation

Group strategy
Further increase in revenues and profits

The new Bertelsmann Outlook 2016

Higher revenues
Media Services Education
Continued high operating profitability
Group profit remaining in excess of 1bn

Ambition level

>20bn >15%
Revenues EBITDA margin

22 October 2016 Bertelsmann Company presentation

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

Brazil India China

Arvato RTL Group Corporate Investments

Investment in financial services Investment in a multi-channel BAI with 18 new investments
provider Intervalor network to strengthen the digital more than in any other year
Corporate Investments businesses before; significant increase of
BBI investments in Corporate Investments market value indications
education BII investments in digital
business models (follow-on
investments and new
+
investments)
23 October 2016 Bertelsmann Company presentation
 Corporate culture

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
Bertelsmanns corporate culture.

24 October 2016 Bertelsmann Company presentation