European Corporate Day / Commerzbank AG / London

Transcription

1 Education European Corporate Day / Commerzbank AG / London Roger Schweitzer EVP Corporate Treasury and Finance Henrik Pahls SVP Corporate Finance June 10, 2015

2 Agenda Bertelsmann at a Glance Divisional Performance Financial Performance Strategy Outlook 2 June 10, 2015 Bertelsmann European Corporate Day

3 Bertelsmann at a Glance International media and services group with diversified revenue base Revenues: Operating EBITDA: Employees: 16,675 2, ,037 TV / Radio / TV-Production Bertelsmann: 75.1% Revenues: Op. EBITDA: 5,808 1,334 Book Publishing Magazine Publishing Services Bertelsmann: 53% Bertelsmann: 100% Bertelsmann: 100% Bertelsmann: 100% Bertelsmann: 100% Revenues: Op. EBITDA: 3, Revenues: Op. EBITDA: 1, Revenues: Op. EBITDA: 4, Printing Revenues: Op. EBITDA: Education / Music Revenues: Op. EBITDA: Revenue by region Revenues by category 7% Other countries 35% Germany 25% Advertising 39% Own Products and merchandise 19% United States 18% Other European Countries 14% France 25% Services 11% Rights and licenses 6% UK Revenues/Operating EBITDA in millions (financial year, continuing operations) 3 June 10, 2015 Bertelsmann European Corporate Day

4 Bertelsmann at a Glance Bertelsmann s core businesses with strong international presence revenues by divisions (in billions) revenues by regions (in %) RTL Group Penguin Random House Gruner + Jahr 63% 37% 92% 8% 49% 51% Arvato Be Printers Bertelsmann 53% 47% 62% 38% 65% 35% % 6% 14% 18% 19% Other countries Great Britain France Other European countries United States % Germany German revenues (in %) International revenues (in %) 4 June 10, 2015 Bertelsmann European Corporate Day

5 Financial year Summary and highlights Group key figures Revenues and Operating EBITDA at highest level since 2007 Operating EBITDA up 2.7%, 14.2% EBITDA margin Group profit impacted by group transformation Financial status Investments continue to be high at 1.6 billion Target rating Baa1/BBB+ with stable outlook Maturity profile extended in at attractive funding terms Strategy Progress on all four strategic priorities Expansion of digital and growth businesses Significant progress in building an education division 5 June 10, 2015 Bertelsmann European Corporate Day

6 Group key figures Strong operating performance, revenues and Operating EBITDA increased Revenues (in billions) Operating EBITDA (in millions) Group profit (in millions) +3.1% EBITDA margin 14.3% 14.2% ,311 2, Note: restated 6 June 10, 2015 Bertelsmann European Corporate Day

7 Group key figures Group profit below prior year due to special items for continued Group transformation Key effects (in m) Operating EBITDA 2,311 2,374 Depreciation/amortization Special items EBIT 1,717 1,150 Financial result Income taxes Earnings after taxes from discontinued operations Group profit Run-down of structurally declining print and club businesses Expenses for profitability improvement program - Integration of Penguin Random House - Efficiency program at Gruner + Jahr - Profitability program at Arvato - Operational Excellence Impairments at Hungarian TV business Positive special items in prior year Note: restated 7 June 10, 2015 Bertelsmann European Corporate Day

8 Group key figures Q Increase of operating result in Q despite disposal of structurally declining businesses (in m) Q1 Q Change in % Revenues 3,900 3, % Operating EBITDA % Depreciation/amortization % Special items EBIT % Financial result % Income taxes % Earnings after taxes from discontinued operations 2 Group profit % Note: Q1 restated 8 June 10, 2015 Bertelsmann European Corporate Day

9 Agenda Bertelsmann at a Glance Divisional Performance Financial Performance Strategy Outlook 9 June 10, 2015 Bertelsmann European Corporate Day

10 RTL Group High profitability with stable revenues Revenues (in m) -0.3% 5,824 5,808 Operating EBITDA (in m) EBITDA margin 22.7% 23.0% 1,324 1,334 Stable revenues, strong prior-year result exceeded Mediengruppe RTL Deutschland with record results Continued expansion of families of channels Production business strengthened through acquisition of 495 Productions Expansion of digital businesses through acquisitions of StyleHaul and SpotXchange Impairments at RTL Hungary due to new advertising tax Note: restated 10 June 10, 2015 Bertelsmann European Corporate Day

11 Penguin Random House Positive business development, successful merger Revenues (in m) +25.2% 3,324 2,654 Operating EBITDA (in m) EBITDA margin 13.7% 13.6% Organic growth, expansion of market positions Strong performance of US publishers with film adaptations of bestsellers as well as children s and juvenile books Numerous literary awards, including Pulitzer Prize for Dan Fagin; more than 500 titles on New York Times Best Seller list Further expansion of digital business, more than 100 million e-books sold Continued successful integration Acquisition of trade-book publishers from Santillana; strengthening position in Spain, No. 1 in Latin America Note: restated 11 June 10, 2015 Bertelsmann European Corporate Day

12 Gruner + Jahr Continuation of transformation, 100% acquisition through Bertelsmann Revenues (in m) -13.3% 2,014 1,747 Operating EBITDA (in m) EBITDA margin 9.6% 9.5% Revenue decline due to divestments (particularly sale of Brown Printing) as well as declining advertising and circulation revenues Operating EBITDA stable excluding print business sold in Digital business in core markets grew 26%, to 17% of total revenues Expansion of digital business through numerous new e-mags and apps, investments in Veeseo and Trnd Efficiency program in Germany and France Bertelsmann sole owner since November 1, Note: restated 12 June 10, 2015 Bertelsmann European Corporate Day

13 Arvato Expansion of e-commerce and financial services Revenues (in m) +6.2% 4,662 4,388 Operating EBITDA (in m) EBITDA margin 9.0% 8.2% Significant revenue growth Operating result impacted by start-up losses for new businesses and margin pressure in some business units Leading European e-commerce services provider for fashion and lifestyle Strengthening of leading position in growing market for financial services and risk management High demand for IT solutions Profitability program Note: restated 13 June 10, 2015 Bertelsmann European Corporate Day

14 Be Printers Ensuring competitiveness in structurally declining markets Revenues (in m) -11.2% 1, Operating EBITDA (in m) EBITDA margin 8.2% 6.4% Decline in revenues and earnings due to decreasing volumes and prices as well as continued overcapacities in the European businesses Ensuring competitiveness in terms of quality and costs Closing of Prinovis printing plant in Itzehoe Sale of printing plants in Italy, calendar business and printing plant participation in Colombia Stable development of US business Note: restated 14 June 10, 2015 Bertelsmann European Corporate Day

15 Corporate Investments Further growth and efficiency improvements at BMG Rights Management, progress in downscaling of structurally declining businesses Revenues (in m) Operating EBITDA (in m) Music rights BMG -6.6% EBITDA margin 3.7% 8.6% Growth organically and through acquisitions of music publishers Talpa and Union Square, and rights catalogs Montana and Hal David Germany s most successful music publisher in Holds more than 2.5 million song and recording rights including 600,000 master rights Education Relias Learning Target segments in the education sector (1) E-learning (2) Universities specializing in health and human sciences (3) Services Takeover of leading US e-learning provider Relias Learning essential step to develop education as a key pillar 44 Further operating activities 20 Funds activities expanded portfolio: BDMI (digital domain startup-investments in US and Europe) BAI (11 new investments in ) Fund activities in growth regions (Brazil, India) Remaining club and direct-marketing businesses: Sale of club businesses in Czech Republic, Slovakia and Spain Withdrawal from German-language club and direct-marketing business Note: restated 15 June 10, 2015 Bertelsmann European Corporate Day

16 Agenda Bertelsmann at a Glance Divisional Performance Financial Performance Strategy Outlook 16 June 10, 2015 Bertelsmann European Corporate Day

17 Financial status Leverage Factor above target due to increased pensions obligations Leverage Factor < 2.5x Economic debt Operating EBITDA 1) Economic debt (in millions) 2.3x 2.4x 2.3x 2.0x 2.7x 6, Coverage Ratio > 4.0x 4.1x 5.2x 6.4x x Operating EBITDA Financial result )1 7.5x Net debt Profit Participation Capital Operating Leases Pensions 4,915 4,913 1,913 1, , ,565 1,738 4,773 1,218 4, ,181 2,146 1,941 1, ,238 2,698 Equity Ratio > 25% Equity Total assets % % % % 39% Credit Rating Baa1, outlook: stable BBB+, outlook: stable 1) After modifications. 17 June 10, 2015 Bertelsmann European Corporate Day

18 Financial status Issuance of hybrid bonds in April 2015 has strengthened financial profile and extended maturity profile in millions 2,705 Financing Activities in FY /2015 Jan/Feb/Mar : 750m bond and 217m promissory notes repaid Jul : Amendment of Syndicated Loan: margin lowered, extension until July 2019 Oct : 500m bond, 10yrs, coupon 1.75% Nov : 100m private placement of 5yrs floater Apr 2015: Issuance of two hybrid bonds with a total volume of 1.25bn, tenure of 60yrs, NC8/12 Repaid in Hybrid Bonds Bonds Promissory notes 1,329 1, Dec 31 Dec Liquidity * For illustrative purposes only. Syndicated loan (until 2019) NC8 NC * * , June 10, 2015 Bertelsmann European Corporate Day

19 Agenda Bertelsmann at a Glance Divisional Performance Financial Performance Strategy Outlook 19 June 10, 2015 Bertelsmann European Corporate Day

20 Strategy Medium term target: Diversified group with three pillars Bertelsmann 0 Education Media Services Education 20 June 10, 2015 Bertelsmann European Corporate Day

21 Strategy Ongoing implementation of transformation and growth strategy based on 4 priorities Target portfolio characteristics Strategy execution: strong progress in Higher growth More digital More international Strengthening the core RTL: Expansion of families of channels, growth of platform revenues PRH: Integration progressing, strong publishing performance with increasing market shares G+J: 100%-acquisition Be Printers: Sale of Be Printers Italy Direct to consumer: Decision to close German business, exit Spain and Eastern Europe Launch of group-wide cost/profitability improvement programs Digital transformation Growth platforms Growth regions RTL: European leader in online video, acquisition of multi-channel network StyleHaul and online video advertising marketplace SpotXchange PRH: Global leader in e- books (100k titles available) G+J: Expansion of digital content and digital advertising Arvato: Growing services for companies in IT/high-tech sector and e-commerce services RTL/Fremantle: Acquisition 495 productions Arvato: Growth of financial solutions Arvato: Growth of e-commerce services business, acquisition of e-commerce service provider Netrada BMG: Further catalog acquisitions Education (e-learning): Acquisition of Relias Learning and investment in Udacity RTL: Channel launches in Southeast Asia through CBS JV PRH: Acquisition of Santillana trade book publishing in Latin America BAI: Continuation of strong value creation India: First direct investments in education and digital media segments 21 June 10, 2015 Bertelsmann European Corporate Day

22 Group strategy Investments of more than 2 billion in growth businesses Investments > 2 billion +1.2 billion revenue growth of growth businesses since June 10, 2015 Bertelsmann European Corporate Day

23 Agenda Bertelsmann at a Glance Divisional Performance Financial Performance Strategy Outlook 23 June 10, 2015 Bertelsmann European Corporate Day

24 Outlook Continuous expansion of growth businesses and active run-down of structurally declining businesses Share of Group revenues Strategic priorities Growth businesses 22% 27% ~40% Organic development and acquisitions Stable businesses 63% 64% ~55% Securing a strong market position and high profitability Structurally declining businesses 15% 9% ~5% Strengthening competitive position, transformation or withdrawal 2011 Trend 24 June 10, 2015 Bertelsmann European Corporate Day

25 Outlook Revenues of 20 billion with a target EBITDA margin of > 15% Outlook 2015 Target Market development Global economic growth Mixed market conditions 16.7 > 20 Group development Increased revenues Higher operating EBITDA Revenues (in bn) Strategy Continued transformation and further implementation along strategic priorities EBITDA margin Existing businesses Education Growth regions Target 14% > 15% 25 June 10, 2015 Bertelsmann European Corporate Day

26 BACKUP 26 June 10, 2015 Bertelsmann European Corporate Day

27 1 Strengthening the core Expansion of reach in core markets Market share Goals of the merger 28.2% #1 Integration 23.4% #1 Innovation 15.4% #2 #1 Latin America 12.6% #1 Internationality 27 June 10, 2015 Bertelsmann European Corporate Day

28 2 Digital transformation Video as the core of RTL Group s digital strategy Strong growth RTL Group video views Full year, in billions Top 10 Global Player # Company 1 Google/YouTube 2 Facebook 3 AOL 4 RTL Group 5 VEVO 6 Maker Studios 7 Yahoo Sites 8 Fullscreen 9 Hulu 10 Dailymotion 28 June 10, 2015 Bertelsmann European Corporate Day

29 2 Digital transformation Accelerated digital transformation of TV business No. 1 media company in online videos in Europe Acquisition of No. 1 fashion & beauty MCN StyleHaul RTL Group second largest player on YouTube 1) 32,000 YouTube channels globally High growth of digital revenues 295 million online revenues in Revenues from online video advertising +22% versus prior year +26% growth of online revenues vs. prior year Global monetization opportunities Acquisition of leading online video marketplace SpotXchange Establishment of strong branded-content environments 1) MCN ranking by unique viewers, average Q4/ Comscore, without music 29 June 10, 2015 Bertelsmann European Corporate Day

30 3 Growth platforms Growth through innovative services and targeted acquisitions European market leader in e-commerce services > 70 online shops for renowned brands > 60 million shipments per year > 3,000 employees worldwide business activities local expertise online marketing financial services sales know-how transportation management B2B logistics competency in fashion industry e-commerce know-how distribution network customer relationships B2C logistics 30 June 10, 2015 Bertelsmann European Corporate Day

31 3 Growth platforms Intensified development of activities in financial solutions segment Focus Internationalization Innovations Activities Integration of Gothia Financial Group completed Cooperation with incubator Startupbootcamp FinTech Outlook Further expansion of international business activities; in 2015, acquisition of an interest in Intervalor, one of the leading providers of financial services in Brazil Development of fraud detection solutions for digital business models Expansion of services portfolio Acquisition of AfterPay Europe-wide rollout of solutions for purchase on account 31 June 10, 2015 Bertelsmann European Corporate Day

32 3 Growth platforms Further expansion of BMG, creative success, leading music publisher in Germany Significant expansion BMG No. 4 globally in music rights management Double-digit organic revenues growth Most successful music publisher in Germany with a cumulative singles chart share of 18% Business expansion through investment 600,000 master recordings (owned/under license) 1,900,000 publishing copyrights (owned/administered) Integration benefits Successful market entry in China 10 countries (+ global partner network) 53 Grammy and 52 Echo nominations 32 June 10, 2015 Bertelsmann European Corporate Day

33 3 Growth platforms Three target segments to build Education division Target segments Market attractiveness Corporate and consumer e-learning Higher education health and human sciences Higher education services Market size US$19bn globally US$160bn globally US$1bn USA Macro drivers Increasing importance of education in a knowledge society Massive expansion of private educational offerings Growing demand in emerging markets Broad access to education via online services Overall characteristics Fragmented markets High growth High profitability Strong entrepreneurship 33 June 10, 2015 Bertelsmann European Corporate Day

34 3 Growth platforms First direct investments, revenue target 1 billion Corporate and consumer e-learning Building a global e-learning enterprise Leading US-based e-learning provider for healthcare 2,500+ online courses, 2+ million users, 25+ million courses completed per year Higher education Health and human sciences Building a network of health and human sciences universities Alliant is a leading US university focusing on psychology 3,700 students at 10 international locations Higher education services Building a services provider focusing on premium universities and colleges in the healthcare segment US services provider for universities/colleges, e.g., (digital) program design, marketing, IT services 8 partner universities, 61 programs with 5,000 students 34 June 10, 2015 Bertelsmann European Corporate Day

35 4 Growth regions High potential through existing businesses, digital business models and education; 1 billion revenue target Existing businesses and investments Business expansion in BRAZIL CHINA 11 additional investments, highest number since start of BAI, continued value creation BMG market entry Strengthened presence of content businesses through Penguin Random House, market leader for English-language books Investments into digital businesses and education INDIA Acquisition of Objetiva (Santillana) Investment in education fund 35 June 10, 2015 Bertelsmann European Corporate Day