Bertelsmann Annual Results 2010 Investor Conference Call

Transcription

1 Bertelsmann Annual Results 2010 Investor Conference Call March 29, 2011 Dr. Thomas Rabe Member of the Executive Board and Chief Financial Officer Bertelsmann AG

2 Summary and highlights Operating performance significantly improved FY 2010» Recovery of advertising markets, in particular TV» Revenues up by 4.5 percent, organic growth >3 percent» Record Operating EBIT of 1.9bn, Group profit 656m» EBITDA Margin 15.2 percent, Return on Sales 11.7 percent» High cash conversion rate, operating free cash flow of 2.1bn, significant debt reduction» Leverage factor of 2.3 times EBITDA» Business and financial risk profile significantly improved over the past two years 2

3 Group key figures Significant revenue growth, key figures at record level in millions 2009 Change 2010 Revenues 15, % 15,786 Operating EBIT 1) 1, ,852 Operating EBITDA 2, ,400 Group profit or loss BVA Operating free cash flow 2) 1, ,075 Cash conversion rate 2) 125% -13%-P. 112% Net financial debt -2, ,913 Economic debt -6,024 1,109-4,915 Leverage factor ) Earnings before interest, taxes and special items (especially impairments and restructuring expenses) 2) Adjusted for one-time effects 3

4 Group key figures Revenues diversified by source and region Revenue sources 2010 (previous year) Revenue by regions 2010 (previous year) Direct-to-consumer 11.4% (12.9%) Advertising 26.4% (25.1%) Other countries U.S. 5.5% (4.8%) 13.4% Germany (12.7%) 34.9% (35.6%) Services 37.5% (36.9%) 24.7% (25.1%) Content 46.2% (46.8%) Rest of Europe 4

5 Divisions High profitability, growth in all divisions except Direct Group ROS in percent Revenues in billions ,102 Operating EBIT in millions Organic growth RTL Group Random House Gruner + Jahr Arvato Direct Group +6.3% +1.6% +0.8% +3.7% -6.7% 5

6 Group profit High group profit due to better performance and lower level of special items in millions 2009 Change 2010 Operating EBIT of divisions 1, ,936 Corporate/consolidation Operating EBIT 1, ,852 Special items Thereof - Restructuring costs Impairments Others Capital gains/losses EBIT ,496 Financial result Income taxes Earnings from discontinued operations Group profit or loss

7 Cash flow High operating cash flow in line with profitability in millions Cash flow from operating activities 1,777 2,052 Taxes paid Investments in intangible and tangible assets Proceeds from the disposal of intangible and tangible assets Restructuring payments Operating free cash flow 1,763 2,103 One-time effects 8-28 Operating free cash flow (adjusted for one-time effects) 1,771 2,075 Cash conversion rate (adjusted for one-time effects) 125% 112% 7

8 Divisional CCR, BVA High cash conversion rate throughout the group, Group BVA substantially improved RTL Group Random House Gruner + Jahr Arvato Direct Group Total Group Cash Conversion Rate in percent BVA in millions

9 Financial status All key ratios met, significant debt reduction in FY 2010 Leverage Factor < 2.5x Economic debt (in millions) 3.4x 3.1x 3.2x 3.2x 2.3x 10,623 HY Interest Coverage Ratio > 4.0x 6.2x 5.0x 4.7x 4.4x 4.1x Equity Ratio > 25% 35% 29% 28% 31% 31% Net debt 7,995 4,582 7,720 4,282 PPC Pensions Operating 1,472 1,558 Leases 1,235 1, ,627 3,445 6, ,409 1, ,793 1,406 1, BBB, stable Outlook 4,915 1, ,565 1, Baa2, stable Outlook 9

10 Financial status High liquidity position despite redemptions in millions 4,878 gross debt 149 1,318 2,052 2, ,919 gross debt 2, Cash-Flow from Operations Investing activities PPC- Buyback, Redemption Interests, others Dividend 2010 Sufficient liquid funds for maturities in 2012 (476 m), 2013 (200 $m) and 2014 (1,245 m) 10

11 Outlook Continued stabilization expected in 2011 Outlook 2011» Economic stabilization» Revenues above previous year» Continued optimization of core businesses and portfolio review» Return on sales in the range of 11 percent» Group profit to exceed previous year s level» Focus on cash flow and target rating 11

12 Q&A-Session March 29, 2011 Dr. Thomas Rabe Member of the Executive Board and Chief Financial Officer Bertelsmann AG