Investor Conference Call – Presentation on Interim Results 2021

Bertelsmann Interim Results 2021

Investor Conference Call August 31, 2021 Rolf Hellermann, Member of the Executive Board and CFO of Bertelsmann Interim Results H1 2021 – Highlights and key topics

1. Record business performance | Revenues of €8.7 billion | Operating EBITDA of €1.4 billion (+42.5%) | Group profit more than doubled

2. Strong financial position | Leverage factor at 1.5x | High equity ratio of 42 percent | Commitment to prudent financial policy

3. Comfortable liquidity reserves | Solid cash conversion rate of 88% | Upcoming acquisitions covered | RCF extended to 2026

5. Outlook | Market uncertainties remain | Robust portfolio | Moderate revenue growth | Increase of EBITDA on comparable basis

1 August 31, 2021 · Bertelsmann · Interim Results 2021 Investor Conference Call Group key figures – Strong organic revenue growth, Operating EBITDA at record high, Group profit increased by €880m

Revenues, in € billions Operating EBITDA1), in € millions Group profit, in € millions

Reported +10.7% Margin 15.0% 12.7% 16.3%

Organic +16.6% +7.1% vs. pre- corona year 2019 8.6 8.7 7.8 1,417 1,292 1,368 994

502 488

H1 2019 H1 2020 H1 2021 H1 2019 H1 2020 H1 2021 H1 2019 H1 2020 H1 2021

1) H1 2020 restated

2 August 31, 2021 · Bertelsmann · Interim Results 2021 Investor Conference Call Divisions – Strong performance of Penguin Random House and Arvato, significant recovery of advertising businesses

H1 2020 H1 2021

Revenues 3.0 in € billions 2.7 2.4 2.1 1.8 583 1.6 Operating 1) EBITDA 400 367 324 in € millions 305 0.7 209 0.5 0.5 0.6 EBIT 0.3 0.3 28 57 19 26 0.2 0.1 188 49 50 40 44 23

EBITDA 1) 14% 19% 13% 18% 5% 10% 17% 17% 15% 16% 3% 4% 25% 32% margin

1) Restated

3 August 31, 2021 · Bertelsmann · Interim Results 2021 Investor Conference Call Group profit – Exceeds billion-euro mark already in the first six months of the current financial year

in € millions H1 2020 H1 2021 Change Comment Strong performance of book publishing and service Operating EBITDA1) 994 1,417 +423 businesses, recovery of advertising businesses Depreciation and amortization1) -436 -415 +21 Restructuring/other adjustments Lower restructuring expenses at RTL Deutschland, G+J and -88 -59 +29 Prinovis Impairments/reversals -66 -5 +61 Impairment Atresmedia in previous year Capital gains/losses and FV High capital gains from divestments especially due to 401 991 +590 remeasurements disposal of SpotX (+745) and Prisma (+49) ∑ Special items 247 927 +680 EBIT 805 1,929 +1,124 Lower expenses from derivates, additional expenses from Financial result -184 -155 +29 bond buyback Income tax expense -133 -406 -273 Increase mainly attributable to higher earnings before tax Group profit 488 1,368 +880

1) H1 2020 restated

4 August 31, 2021 · Bertelsmann · Interim Results 2021 Investor Conference Call Further Group key figures – Higher cash flow, investments and divestments above previous year

Operating Free Cash Flow, in € millions Investments1), in € millions Divestments, in € millions

CCR 122% 88%

1,148 +29% 573 860 i.a. Super Purchase prices 124 RTL for consolidated i.a. SpotX 667 investments (net 402 680 of acquired cash) 10 Disposals of 143 79 subsidiaries Investments in and other financial assets business units

i.a. cash- 313 306 in from 173 468 Investments in other Disposals of real-estate other 27 non-current assets disposal in fixed assets 146 2020 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021

1) According to cash flow statement

5 August 31, 2021 · Bertelsmann · Interim Results 2021 Investor Conference Call Financial status (1/2) – Net financial debt and pensions decreased, leverage factor far below limit

Economic Debt, in € millions Economic debt Leverage Factor Operating EBITDA2)

30 June 2020 2.8x 6,511 6,464 31 Dec 2020 1.9x 30 June 2021 1.5x

5,207 Limit: ≤ 2.5x 2,739 2,767 4,432 Equity Ratio Equity Net financial debt1) 1,430 Total assets 1,242 30 June 2020 34% 413 413 413 31 Dec 2020 36% Profit participation capital 413 1,392 1,335 1,355 30 June 2021 42% 1,317 Target: ≥ 25% Lease liabilities

1,967 1,949 2,009 Credit Rating 1,460 Pensions provision

Baa2, outlook: stable 31 Dec 30 June 31 Dec 30 June 2019 2020 2020 2021 BBB, outlook: stable

1) Less 50% par value of hybrid bonds 2) After modifications

6 August 31, 2021 · Bertelsmann · Interim Results 2021 Investor Conference Call Financial status (2/2) – Liquidity used for tender offer and early redemptions, comfortable liquidity position in € millions Financing activities H1 2021 Bonds • Early redemption of €100m floating-rate promissory note (due in April 2023) Promissory notes • Early redemption of €500m bond in March (due in May 2021) Hybrid bonds • Tender offer for bonds due in August 2022, October 2024 and September 2025 totaling a nominal value of €428 million

3,675 1,250 1,200

NC81) NC121) 800 750 650 685 Syndi- 5972) cated 575 4902) Liquidity loan 600 (until 5352) 2026) 500

100 100 150 75 100 30 June 2021 2021 2022 2023 2024 2025 2026 2027 2028 2030 2032 2075

1) Indication of first call date, for illustrative purposes only 2) Outstanding nominal amount has been reduced by tender offer

7 August 31, 2021 · Bertelsmann · Interim Results 2021 Investor Conference Call Group strategy – Substantial progress along all strategic priorities

Strategic growth priorities 1 2 3 4 5

National Global Global Online Investment media champions content services education portfolio

Paying subscribers Organic and acquisition- Organic growth Acquisition of 46 new and >3m (growth +72%) related expansion +32% minority stake follow-on investments

Merger Acquisitions in children's Further expansion of Investments in new Expansion to agreement and young adult book site network products and technologies ~270 participations sector + GER

Merger Alliance for acquisition of Growth Continued expansion IPOs of agreements major music rights pay after delivery of online offering portfolio companies packages + + FR NL

8 August 31, 2021 · Bertelsmann · Interim Results 2021 Investor Conference Call Outlook full year 2021 – Bertelsmann’s business performance expected to further strengthen

Market development Outlook Group development

• Global economic growth • Moderate revenue growth, continued recovery of advertising markets • Continued uncertainty • Significant to strong increase in Operating EBITDA • Mixed market conditions on a comparable basis

− Moderate decline in reported Operating EBITDA as previous year included €376m disposal proceeds from real estate transactions

• Group profit of nearly €2bn

• Continued execution of growth strategy

9 August 31, 2021 · Bertelsmann · Interim Results 2021 Investor Conference Call Q&A-session

Investor Conference Call August 31, 2021 Rolf Hellermann, Member of the Executive Board and CFO of Bertelsmann