Company presentation last updated September 2021 (FY 2020 figures) Bertelsmann SE & Co. KGaA
First-class media content, services and education offerings Market-leading positions in the core businesses of TV, books, magazines, music, services, print and education
International focus A globally operating company with 132,842 employees in some 50 countries
2 September 2021 · Bertelsmann · Company Presentation Bertelsmann at a Glance
€17.3 Billion €3.143 Billion €1.459 Billion 132,842 Gütersloh Group revenues Operating EBITDA Group profit Employees Headquarters
Media Services Education Investments
3 September 2021 · Bertelsmann · Company Presentation The Executive Board
Thomas Rabe Markus Dohle Rolf Hellermann Immanuel Hermreck Chairman & CEO of Bertelsmann CEO of Penguin Random House CFO of Bertelsmann Chief Human Resources Officer and CEO of RTL Group of Bertelsmann
4 September 2021 · Bertelsmann · Company Presentation The Group Management Committee (GMC)
The GMC is composed of the members of the Bertelsmann Executive Board and select executives from the Bertelsmann Group.
Matthias Dang Elmar Heggen Dirk Kemmerer Kay Krafft Annabelle Yu Long Hartwig Masuch Madeline McIntosh Co-Chief Executive Officer COO and Deputy CEO CEO of Bertelsmann CEO of Bertelsmann CEO of Bertelsmann CEO of BMG CEO of Penguin of RTL Deutschland of RTL Group Printing Group Education Group China Corporate Center Random House U.S. and Managing Partner of Bertelsmann Asia Investments
Shobhna Mohn Gail Rebuck Bernd Reichart Stephan Schäfer Frank Schirrmeister Karin Schlautmann Nicolas de Tavernost Executive Vice President Board Member Co-Chief Executive Officer CEO of Arvato Supply Executive Vice President Chairman of the Growth Regions Strategy Penguin Random of RTL Deutschland and Chain Solutions Corporate Communications Executive Board of and Bertelsmann Chief Executive Officer of House of Bertelsmann Groupe M6 Investments Gruner + Jahr
5 September 2021 · Bertelsmann · Company Presentation Group strategy – Growth along five Strategic Priorities
Target portfolio Strategic growth priorities
Strong growth National Global Global Online Investment Media Content Services Education Portfolio Champions High profitability
Digital
Framework International
Tech & Data Upskilling Cooperation & Alliances Diversified
6 September 2021 · Bertelsmann · Company Presentation RTL Group – A Leader Across Broadcast, Content and Digital
€6,017m €1,097m 15,686 Luxemburg/Cologne Revenues Operating EBITDA Employees Headquarters
Broadcast Content Digital 67 TV channels and 38 radio stations Fremantle is one of the world’s largest • Leading European media company in • RTL Television and Vox in Germany creators, producers and distributors of digital video • M6 in France scripted and unscripted content • 10 streaming services • International production network in over • Antena 3 in Spain • Bedrock: streaming-tech company 30 countries • RTL channels in the Netherlands, Belgium, • Smartclip: leading advertising technology Luxembourg, Croatia and Hungary • Producing over 12,000 hours each year of original programming platform in Europe • Distributing and licensing over 30,000 • We Are Era: digital studio and talent hours of content in 180 countries agency • >360 YouTube channels from Fremantle
7 September 2021 · Bertelsmann · Company Presentation RTL Group – A Leader Across Broadcast, Content and Digital
Broadcast Content Digital
8 September 2021 · Bertelsmann · Company Presentation Penguin Random House – The World’s Leading Trade Book Publisher
€3,802m €691m 10,871 New York Revenues Operating EBITDA Employees Headquarters
• More than 300 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 • Numerous titles on the bestseller lists of “New York Times” in the USA, “Sunday Times” in UK and “Spiegel" in Germany • More than 80 Nobel Prize laureates
9 September 2021 · Bertelsmann · Company Presentation Penguin Random House – The World’s Leading Trade Book Publisher
Authors Bestsellers Publishers
10 September 2021 · Bertelsmann · Company Presentation Gruner + Jahr – One of Europe’s Largest Magazine Publishers
€1,135m €127m 8,777 Hamburg Revenues Operating EBITDA Employees Headquarters
• Around 500 magazines and digital offerings • 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
11 September 2021 · Bertelsmann · Company Presentation Gruner + Jahr – One of Europe’s Largest Magazine Publishers
Magazines Digital Offerings Brands
12 September 2021 · Bertelsmann · Company Presentation BMG – The World’s Fourth-biggest International Music Company
€602m €137m 974 Berlin Revenues Operating EBITDA Employees Headquarters
Facts Artists & Songwriters Services
• A single, integrated platform for the world, • Many of the most renowned and successful • Music Publishing covering music publishing and recordings catalogs in popular music history • Recordings • 20 offices in 12 core music markets • International and domestic artists including • Production Music • Relentless focus on fairness, transparency Avril Lavigne, KSI, Kontra K, Jason Aldean, Artist Management and service Dido, Kylie Minogue, Blanco Brown, LP, and • Run The Jewels • Films • More than 3 million songs and recordings • International and domestic songwriters • Books • +25 billion music streams per year including Mick Jagger and Keith Richards, • Neighboring Rights • Named one of The World’s Most Innovative Erika Ender, Lewis Capaldi, Ringo Starr, Companies by Fast Company in 2020 Patricia Kelly, Dianne Warren, and Kamille • Podcasts
13 September 2021 · Bertelsmann · Company Presentation BMG – The World’s Fourth-biggest International Music Company
Current Projects Classic Repertoire Partners
14 September 2021 · Bertelsmann · Company Presentation Arvato – A Leading International Service Provider
€4,382m €662m 85,662 Gütersloh Revenues Operating EBITDA Employees Headquarters
• Service portfolio: Supply Chain Solutions, financial services and 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
15 September 2021 · Bertelsmann · Company Presentation Bertelsmann Printing Group – Europe’s Biggest Printing Group
€1,362m €55m 7,183 Gütersloh Revenues Operating EBITDA Employees Headquarters
• 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
16 September 2021 · Bertelsmann · Company Presentation Bertelsmann Education Group – Innovative Digital Learning Offers with Global Potential
€301m €89m 1,626 New York Revenues Operating EBITDA Employees Headquarters
• 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 Innovative e-learning solutions Provider of online On-campus and online development, and to prepare students for services for higher university for healthcare assessment in the technology jobs of the future education institutions in professions and humanities healthcare industry the US
17 September 2021 · Bertelsmann · Company Presentation Bertelsmann Investments – A Global Network of Funds Focused on Innovation and Expansion
259 63 15 Active portfolio Successful exits Unicorns in portfolio holdings Companies with a valuation of more than US-$1 billion
• Four internationally active funds with investments in emerging digital start-ups 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 start-ups • Regionally complemented with fund investments in Europe, Africa and Southeast Asia
Largest portfolio with more than Established Series B/C investor Direct holdings and fund Active since 2006 with numerous 140 holdings, including the in India with several holdings, e.g. investments with a focus on holdings mainly in the USA and streaming provider NetEase in the fintech start-ups Lendingkart, education Europe, e.g. FloSports and Art19 Cloud Music Shiprocket and Eruditus
18 September 2021 · Bertelsmann · Company Presentation The Bertelsmann Essentials
Creativity Creativity is vital to us. We celebrate and nurture creativity: Entrepreneurial freedom provides us with the vision and encouraging the critical and imaginative thinking that courage to take risks, the decisiveness and perseverance to get challenges convention and unlocks opportunity. Our minds are things done, and to be accountable for our actions. Because we open and curious and we encourage and develop the act responsibly, we can be proud of our entrepreneurial passionate pursuit of fragile ideas. We know that achievements. We never lose sight of our customers. Mutual experimentation is part of the creative process and that respect and trust between every colleague and partner is innovation best serves our customers and markets. Diversity crucial. Collaborating makes us all stronger. We invest in our is crucial. We actively seek out different viewpoints and people, empower them and provide fair working conditions. encourage communication and collaboration. We’re mindful of the impact we have on society and environment, and we seek to make a positive difference. Entrepreneurship
19 September 2021 · 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
20 September 2021 · Bertelsmann · Company Presentation Culture@Bertelsmann
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. Against the backdrop of the Corona pandemic, Bertelsmann shifted its cultural formats to the digital space in 2020. The “Digital Summer of Culture” generated more than 400,000 views of concert streamings, digital UFA Film Nights and live broadcasts from the Blue Sofa.
• Silent film festival hosted by Bertelsmann and UFA • Bertelsmann restores and digitizes artefacts from • Inspires thousands of film fans in Berlin, Brussels 200 years of Italian opera history and on the Internet • Most valuable privately owned music archive • Bertelsmann sponsors the restoration of important in the world silent films by the Murnau Foundation • Archivio for all: int. exhibitions, performance of rare operas, archive holdings freely accessible online
Exhibitions
• Germany's most successful literary format • Treasures from the Ricordi Archive shown in the • About 3,000 discussions with authors to date United States for the first time: “Verdi: Creating Otello • Crowd puller at book fairs and Falstaff” attracts more than 70,000 opera fans to • Cooperation with ZDF, Deutschlandfunk Kultur New York’s Morgan Library & Museum in late 2019 and 3sat
21 September 2021 · Bertelsmann · Company Presentation Reinhard Mohn Centennial
Bertelsmann honors its post-war founder and long-time Chairman & CEO Reinhard Mohn on what would have been his 100th birthday.
Key elements: • Publication of a new book (author: Prof. Dr. Joachim Scholtyseck) • Presentation of the publication with Thomas Rabe and Prof. J. Scholtyseck as part of the “Blue Sofa” literary format • Ceremony with film tribute • Reinhard Mohn Special Award as part of the “Deutscher Gründerpreis” (German Startup Award) initiative • Presentation of Reinhard Mohn at the “75 Years of NRW” exhibition hosted by the Haus der Geschichte NRW foundation in Düsseldorf • Special projects in Gütersloh: e.g. “Reinhard Mohn-Straße”; city map with references to Reinhard Mohn
22 September 2021 · Bertelsmann · Company Presentation Reinhard Mohn Centennial
Reinhard Mohn was born in Gütersloh on June 29, 1921. He represents the fifth generation of the Bertelsmann/Mohn owner families. After returning from being a prisoner of war in the US, he took over the management of C. Bertelsmann, at that time a medium-sized printing and publishing house, from his father Heinrich Mohn in 1947. In the decades that followed, he laid the foundations for Bertelsmann’s rise to become a global corporation, which today has more than 130,000 employees in 50 countries.
Reinhard Mohn is considered one of the foremost German entrepreneurs of the 20th century. He passed away on October 3, 2009, at the age of 88, but continues to shape Bertelsmann’s corporate values, governance philosophy and entrepreneurial activities to this day.
23 September 2021 · Bertelsmann · Company Presentation Backup Group Key Financials 2020 – Revenues of €17.3bn, EBITDA at record high, Group profit at highest level since 2006
Revenues Operating EBITDA Group profit in € bn in € m in € m
Reported -4.1% Q1 -2.1% Q2 -13.4% Margin 16.0% 18.2% Organic -1.7% Q3 +1.6% Q4 +5.9% 18.0 17.3 3,143 1,459 2,887 1,091
2019 2020 20191) 20202) 2019 2020
1) Restated 2) Including earnings from real-estate transactions
25 September 2021 · Bertelsmann · Company Presentation Group strategy – Substantial progress in all strategic priorities
Strategic growth priorities
National Global Global Online Investment Media Champions Content Services Education Portfolio
Expansion of Expansion of Organic Investments in new Expansion to video on demand drama productions growth +6% products and technologies ~260 investments
Sales partnership
Agreement on 100% Agreement Major Expansion of Shareholdings in + 100% step-up step-up on acquisition client wins online offering 15 unicorns
Expansion of Growth with Partnership in risk Growth with Investments since digital offering music streaming management business B2B clients launch €>1.3bn
26 September 2021 · Bertelsmann · Company Presentation Group strategy – Framework initiatives driven forward; achievements in climate neutrality
Framework Climate neutrality
Tech & data Upskilling Cooperation & alliances Highlights
Launch of „Bertelsmann >60,000 applicants for Internationalization, Expansion of sites Collaboration Platform“ for Udacity scholarships cross-media campaigns with green electricity Group-wide exchange
#50000Chances
Progress in expanding Establishment of Expansion of Corporate Center data, cloud and digital curricula internal cooperation, climate neutral IT security structures admission of new partners
27 September 2021 · Bertelsmann · Company Presentation