Annual Report 2012 Bertelsmann is an international media company whose core divisions encompass television (RTL Group), book publishing (Random House), magazine publishing (Gruner + Jahr), services (Arvato), and printing (Be Printers) in some 50 countries. In 2012, the company’s businesses, with their more than 100,000 employees, generated revenues of €16.1 billion. Bertelsmann stands for a combination of creativity and entrepreneurship that empowers the creation of first-rate media, communications, and service offerings to inspire people around the world and to provide innova- tive solutions for customers. www.bertelsmann.com At a Glance Key Figures (IFRS) in € millions 2012 2011 2010 2009 2008 Business Development Consolidated revenues 16,065 15,368 15,065 15,364 16,118 Operating EBIT 1,735 1,755 1,825 1,424 1,568 Operating EBITDA 2,213 2,243 2,355 2,003 2,130 Return on sales in percent 1) 10.8 11.4 12.1 9.3 9.7 Bertelsmann Value Added (BVA) 2) 364 359 378 26 88 Group profit 619 612 656 35 270 Investments 655 956 753 662 1,095 Consolidated Balance Sheet Equity 6,079 6,149 6,486 5,980 6,231 Equity ratio in percent 32.2 33.9 34.7 30.9 31.0 Total assets 18,865 18,149 18,702 19,378 20,132 Net financial debt 1,218 1,809 1,913 2,793 3,445 Economic debt 3) 4,778 4,913 4,915 6,024 6,627 Leverage factor 2.3 2.4 2.3 3.2 3.2 Employees (in absolute numbers) Germany 38,434 37,519 36,462 36,930 38,421 Other countries 65,852 65,233 61,066 66,053 67,662 Total 104,286 102,752 97,528 102,983 106,083 Dividends to Bertelsmann’s shareholders 180 180 180 60 120 Distribution on profit participation certificates 44 44 44 75 76 Employee profit sharing 92 107 108 65 75 Figures adjusted for the financial year 2011; figures for the financial year 2010 as reported in the Annual Report 2011; before 2010 as reported in the respective financial year. 1) Based on operating EBIT. 2) Bertelsmann uses the BVA as a key performance indicator to evaluate the profitability of the operating business and the return on investment. 3) Net financial debt plus pension provisions (taking into account IAS 19.93A), profit participation capital, and net present value of operating leases. Total Revenues by Segments in percent4) Operating EBIT by Segments in percent 4) 37.6 RTL Group 13.4 Random House 57.3 RTL Group 17.5 Random House 7.3 Be Printers 13.9 Gruner + Jahr 9.0 Gruner + Jahr 27.8 Arvato 3.2 Be Printers 13.0 Arvato 4) Based on total from segments not including Corporate Investments, Corporate, and Consolidation. in € millions 2012 2011 2010 2009 2008 in € millions 2012 2011 2010 2009 2008 Revenues 6,002 5,814 5,591 5,410 5,774 Revenues 2,142 1,749 1,828 1,723 1,721 Operating EBIT 1,065 1,121 1,102 793 927 Operating EBIT 325 185 173 137 137 ( in absolute ( in absolute Employees numbers) 11,931 12,184 12,339 12,520 12,360 Employees numbers) 5,712 5,343 5,264 5,432 5,779 RTL Group is the leading European entertainment network, Random House is the global leader in connecting authors with interests in 53 TV channels and 28 radio stations in with readers, and readers with the world. It is home to more 10 countries and content production throughout the world. than 50 Nobel Prize laureates, 100 Pulitzer Prize winners, The TV portfolio of Europe’s largest broadcaster includes RTL and many of the most widely read and admired authors of Television in Germany, M6 in France, the RTL channels in the our time. Together, its 200 editorially independent imprints Netherlands, Belgium, Luxembourg, Croatia, and Hungary, in 15 countries form a commercial and literary powerhouse and Antena 3 in Spain. The company also operates the that publishes around 10,000 new titles, and sells more joint venture channel Big RTL Thrill in India and has interests than 400 million copies in print, audio, and digital formats in National Media Group in Russia. RTL Group’s flagship annually. More than 47,000 English-, German-, and Spanish- radio station is RTL in France, and it also owns or has language Random House titles are available as e-books. interests in other stations in France, Germany, Belgium, the Random House is comprised of colleagues working together Netherlands, Spain, and Luxembourg. RTL Group’s content to share their love of books as passionate supporters of production arm, Fremantle Media, is one of the largest their authors, booksellers, and readers. Random House is a international producers outside the United States. Each wholly owned subsidiary of Bertelsmann. year, it produces 9,100 hours of programming across 62 countries. Bertelsmann owns an approximately 92 percent interest in RTL Group, making it the principal shareholder of the listed company. www.rtl-group.com www.randomhouse.com Figures adjusted for the financial year 2011; figures for the financial year 2010 as reported in the Annual Report 2011; before 2010 as reported in the respective financial year. in € millions 2012 2011 2010 2009 2008 in € millions 2012 2011 2010 2009 2008 Revenues 2,218 2,287 2,259 2,508 2,769 Revenues 4,449 4,201 5,225 4,826 4,993 Operating EBIT 168 233 260 203 225 Operating EBIT 241 269 347 345 369 ( in absolute ( in absolute Employees numbers) 11,585 11,822 11,637 13,571 14,941 Employees numbers) 63,818 61,257 65,182 60,323 62,591 The Gruner + Jahr printing and publishing house reaches As a global BPO services provider, Arvato supports business readers and users in more than 30 countries with its more customers all over the world in successfully shaping their than 500 media activities, magazines, and digital offerings. customer relationships. More than 63,000 employees in Gruner + Jahr publications include “Stern” (Germany), almost 40 countries design and implement customized “Brigitte” (Germany), “Geo” (Germany, Spain, France), solutions for this purpose. These consist of processes such “Capital” (Germany, France), “Gala” (Germany, France, as marketing and CRM services, supply chain management Poland), “Eltern” (China, Germany, Spain, Poland), “P.M.” and distribution as well as financial services – all of which (Germany), “Essen & Trinken” (Germany), and “National are interlinked by integrated IT platforms. Arvato AG is a Geographic” (Germany, France, Poland, the Netherlands). wholly owned subsidiary of Bertelsmann. Gruner + Jahr owns 59.9 percent of Motor Presse Stuttgart, one of Europe’s biggest special-interest magazine publish- ers. The Brown Printing Company, a G+J subsidiary, is one of the largest offset printers in the United States. With non- domestic sales accounting for 55 percent of its revenue, G+J is one of the world’s most international publishing companies. Bertelsmann owns 74.9 percent of shares in Gruner + Jahr; the Jahr publishing family in Hamburg owns 25.1 percent. www.guj.com www.arvato.com in € millions5) 2012 2011 2010 2009 2008 Revenues 1,174 1,199 – – – Operating EBIT 60 72 – – – ( in absolute Employees numbers) 6,380 7,068 – – – Be Printers, the international printing group, produces Corporate Investments include the music rights company magazines, catalogs, brochures, books, and calendars BMG as well as the BDMI and BAI funds, which invest in for its clients. The company also offers services in the rapidly growing start-ups in the United States, Europe, and areas of media creation and digital solutions. Be Printers Asia. Through the University Ventures Fund, Bertelsmann operates gravure and offset printing plants in Germany is involved in innovative educational initiatives. Corporate and the UK (Prinovis), in Italy and Spain (Southern Europe) Investments is also home to the club and direct marketing and in the United States and Colombia (Americas). The group operations. has approximately 6,400 employees at its 18 production The responsibilities of the Corporate Center comprise in sites, and covers the full spectrum of contemporary printing particular activities in the areas of accounting and repor- technologies (gravure, web and sheet offset, digital). ting, taxes, legal, human resources, information technology, Be Printers has its headquarters in Hamburg (Germany). internal auditing, as well as management, internal control, and strategic development of the Group, financing, risk management, and the optimization of the Group’s portfolio. www.beprinters.com www.bertelsmann.com 5) With effect from January 1, 2012, Arvato’s European gravure operations and offset printers in Southern Europe, the United States, and Colombia were merged into a separate division: Be Printers. Annual Report App The Bertelsmann Annual Report is available as a free app on the Apple App Store or Android Market. This gives you convenient mobile access to all key figures and other information from financial year 2012, including the current structure of the Group. The app works with iPad tablet computers, iPhone mobile digital devices versions iOS 5.0 and up, and Android devices versions 4.0 and up. Contents Company Information Financial Information 2 Letter from the CEO 52 Group Management Report 6 Executive Board 8 Group Management Committee 83 Group Financial Statements 10 The Four Strategic Cornerstones 156 Corporate Governance 12 Strengthening the Core 20 Digital Transformation 158 Report of the Supervisory Board 28 Growth Platforms 36 Growth Regions 162 Boards / Mandates 162 Supervisory Board 44 Bertelsmann Essentials 164 Executive Board 46 Corporate Responsibility 166 Auditor’s Report 167 Responsibility Statement 168 Additional Information 168 Selected Terms at a Glance 169 Financial Calendar / Contact 170 Production Credits Bertelsmann Annual Report 2012 “Bertelsmann is an ideal home for creative and entrepreneurial talent.” Dr.