Bertelsmann Annual Results 2015

Transcription

1 Bertelsmann Annual Results Investor Conference Call March 22, 2016 Thomas Rabe Chairman and CEO of Bertelsmann

2 Summary and highlights Financial year Group key figures Revenues up 2.8 percent, highest level since 2007 Operating EBITDA up by 111m, 14.5% EBITDA margin Group profit over 1bn Financial status Leverage Factor within target range Strategy Significant progress on all strategic priorities Target rating Baa1/BBB+ with stable outlook Education business established as third pillar Financial profile strengthened through issuance of 1.25 billion hybrid bonds New Group structure from 2016 with eight divisions 2 March 22, 2016 Bertelsmann Annual Results Investor Conference Call

3 Group key figures Highest revenues since 2007, operating EBITDA on record level, group profit over 1bn in billions Revenues Operating EBITDA Group profit EBITDA margin +2.8% +94% 14.2% 14.5% Note: restated 3 March 22, 2016 Bertelsmann Annual Results Investor Conference Call

4 Divisions Increased earnings at US book publishing, German TV, CRM and SCM services, music and education businesses Continuing operations Revenues (in billions) ,334 1, Operating EBITDA (in millions) RTL Group Penguin Random House Gruner + Jahr Arvato Be Printers Corporate Investments EBITDA margin 23.0% 22.5% 13.6% 15.0% 9.5% 8.3% 8.2% 8.1% 6.4% 6.3% 8.6% 12.8% Note: restated 4 March 22, 2016 Bertelsmann Annual Results Investor Conference Call

5 Group key figures Diverse revenue base across regions and category Revenue by region Revenues by category 6.9% Other countries 21.6% United States 33.9% Germany 24.7% Advertising 37.1% Own Products and merchandise 17.7% Other European Countries 13.2% France 25.7% Services 12.5% Rights and licenses 6.7% UK Revenue share FY, continuing operations 5 March 22, 2016 Bertelsmann Annual Results Investor Conference Call

6 Group key figures Significant increase of group profit due to improved operating performance and lower special items in millions Change Commentary Operating EBITDA 2,374 2, Profitable growth and earnings improvement program Depreciation & Amortization (606) (613) +7 Special items (619) (191) +428 EBIT 1,149 1, Negative effects in : scaling back of structurally declining businesses, restructuring and integration costs Financial result (295) (230) +65 Previous year included full takeover of Gruner + Jahr Income taxes (286) (346) -60 Earnings of taxes from discontinued operations Deviation due to tax receivables fiscal court proceedings in Group profit 572 1, restated 6 March 22, 2016 Bertelsmann Annual Results Investor Conference Call

7 Investments and free cash flow Investments continuously on high level, cash conversion impacted by increased working capital Investments (in millions) Operating free cash flow (in millions) Cash Conversion Rate 1,601 97% 83% 1, Acquisitions Intangible assets 1,711 1, Other Note: restated 7 March 22, 2016 Bertelsmann Annual Results Investor Conference Call

8 Financial status Leverage Factor in comfortable position, hybrid bonds strengthened financial profile Leverage Factor < 2.5x Economic debt Operating EBITDA 1) Economic debt (in millions) 2.4x 2.3x 2.0x Coverage Ratio > 4.0x 5.2x 6.4x 5.9x 2.7x 2.4x 7.5x Operating EBITDA Financial result )1 10.1x Net debt * less 50% par value of hybrid bonds Profit Participation Capital Operating Leases Pensions 4,913 1, ,738 4,774 1, ,146 4, ,181 1,941 6,039 1, ,238 2,698 5,609 2, ,347 1, Equity Ratio > 25% Equity Total assets Credit Rating 34% 32% 41% 39% 41% Baa1, outlook: stable BBB+, outlook: stable 1) After modifications. 8 March 22, 2016 Bertelsmann Annual Results Investor Conference Call

9 Financial status Issuance of hybrid bonds and promissory notes extended maturity profile in millions Financing Activities in FY Apr : 1.25bn hybrid bonds, 60-yrs term, initial redemption options of 8 and 12 years Dec : 100m promissory note of 5yrs term; 150m promissory note of 10yrs term 1,310 1,200 Hybrid bonds Bonds Promissory notes 1,250 1,000 Liquidity Syndicated loan (until 2020) 786 Repaid in Outstanding NC8 650* 500 NC12 600* Dec *For illustrative purposes only. 9 March 22, 2016 Bertelsmann Annual Results Investor Conference Call

10 Group strategy Continuation of successful transformation and growth strategy Target portfolio Strategy execution: based on 4 strategic priorities Strengthening the core Digital transformation Growth platforms Growth regions Higher growth More digital More international RTL: Four new linear TV channels launched, expansion of production business PRH: Integration nearly completed, strong publishing performance G+J: Expansion of magazine portfolio, relaunch of seven titles Arvato/Be Printers: Restructuring, foundation of Bertelsmann Printing Group Continued Group-wide earnings improvement program RTL: Platforms and offers generated 105bn online video views, RTL Digital Hub founded in June PRH: Remains global leader in e-books (110k titles available) G+J: Expansion of digital content and digital advertising, acquisition of Danato and Delinero Arvato: Growing services for companies in IT/high-tech sector and e-commerce services RTL/Fremantle: Acquired several production companies (e.g. Wildside) Arvato: Investment in Brazilian financial services provider Intervalor BMG: Further catalog acquisitions, new separate division Bertelsmann Education Group: New separate division for education activities Education (e-learning): Acquisition RediLearning, investment in online education platform HotChalk BAI: Significant value increase, further investments in a large number of startups China: BMG signed digital distribution agreement with Alibaba Brazil: Investment in Affero Lab, a leading B2B provider of corporate training India: Expansion of investment in Pepperfry and Saavn Bertelsmann Investments: New separate division 10 March 22, 2016 Bertelsmann Annual Results Investor Conference Call

11 Group strategy New Group structure from 2016 with eight divisions around three pillars Media Services Education 11 March 22, 2016 Bertelsmann Annual Results Investor Conference Call

12 Group strategy Revenues of 20 billion, target EBITDA margin of > 15%, share of growing businesses > 40% Outlook 2016 Revenues in billions Market development Global economic growth Mixed market conditions >20 Group development Slight revenue growth Stable operating EBITDA, continued investment in digital businesses Growing % % >40% Strategy Stable 67% 67% ~55% Continued transformation and further implementation along strategic priorities Declining 8% 5% <5% Declining Stable Growing Trend 12 March 22, 2016 Bertelsmann Annual Results Investor Conference Call

13 Q&A-Session Investor Conference Call March 22, 2016 Thomas Rabe Chairman and CEO of Bertelsmann

14 Group structure Change in divisional organization/reporting structure as of fiscal year 2016 Previous divisional organization RTL Group Penguin Random House Gruner + Jahr Divisional organization from 2016 RTL Group Penguin Random House Gruner + Jahr BMG Media Arvato Be Printers Arvato Bertelsmann Printing Group Services Bertelsmann Education Group Education Corporate Investments Bertelsmann Investments Sum of divisions Corporate Center Consolidation/other Group Sum of divisions Corporate Consolidation/other Group 14 March 22, 2016 Bertelsmann Annual Results Investor Conference Call