Bertelsmann Interim Results 2016

Transcription

1 Bertelsmann Interim Results 2016 Investor Conference Call August 31, 2016 Bernd Hirsch Member of the Executive Board and CFO of Bertelsmann

2 Summary and highlights Interim Results 2016 Group key figures Revenues down 0.9 percent, organic growth of 1.3 percent Operating EBITDA up to 1,111 million 13.9% EBITDA margin Group profit increased to 482 million Financial status Leverage Factor above target range due to higher pensions Target rating Baa1/BBB+ with stable outlook Financial profile strengthened through bond issuance, comfortable liquidity position Strategy Significant progress on all strategic priorities Education business established as third pillar New Group structure from 2016 with eight divisions 2 August 31, 2016 Bertelsmann Interim Results 2016 Investor Conference Call

3 Group key figures H Organic revenue growth, operating EBITDA on record level Revenues, in billions Operating EBITDA, in millions Group profit, in millions Reported -0.9% Organic +1.3% EBITDA margin 13.2% 13.9% +4.5% ,063 1, % H H H H H H August 31, 2016 Bertelsmann Interim Results 2016 Investor Conference Call

4 Divisions H Revenue growth at RTL Group, Arvato, Bertelsmann Education Group und BMG Continuing operations H H Revenues (in billions) Operating EBITDA (in millions) RTL Group Penguin Random House Gruner + Jahr BMG Arvato Bertelsmann Printing Group Bertelsmann Education Group EBITDA margin 22.4% 23.5% 12.2% 12.2% 7.2% 6.8% 17.4% 17.4% 7.8% 9.5% 4.8% 6.0% -6.9% -20.9% Note: H restated 4 August 31, 2016 Bertelsmann Interim Results 2016 Investor Conference Call

5 Group profit Increased due to improved operating performance and lower special items in millions H H Change Commentary Operating EBITDA 1,063 1, Strong operating performance Depreciation & Amortization (292) (306) -14 Special items (101) +101 EBIT Lower restructuring expenses and gains on disposals in the Bertelsmann Investments division Financial result (119) (117) +2 Income taxes (156) (206) -50 Earnings after taxes from discontinued operations 3-3 Group profit Higher due to improved earnings, positive special effects in prior year Improved operating performance and lower special items 5 August 31, 2016 Bertelsmann Interim Results 2016 Investor Conference Call

6 Group key figures H Diverse revenue base across regions and category Revenue by region Revenues by category 6.0% Other countries 20.4% United States 35.2% Germany 26.3% Advertising 26.5% Own Products and merchandise 18.5% Other European Countries 14.2% France 35.3% Services 11.9% Rights and licenses 5.7% UK Revenue share H1 2016, continuing operations 6 August 31, 2016 Bertelsmann Interim Results 2016 Investor Conference Call

7 Financial status H Leverage Factor above target due to increased pensions obligations Economic Debt (in millions) Leverage Factor Net financial debt *less 50% par value of hybrid bonds 31 Dec , June ,058* 31 Dec ,140* 30 June ,329* 30 June Dec June 2016 Target: < 2.5 Equity Ratio (in %) 2.7 Pension provisions -2,699-2,069-1,709-2, June % 31 Dec % 30 June % Target: > 25% Operating leases Profit participation capital -1, ,039-1, ,867-1, ,609-1, ,274 Credit Rating Baa1, outlook: stable BBB+, outlook: stable 7 August 31, 2016 Bertelsmann Interim Results 2016 Investor Conference Call

8 Financial status H Issuance of bond and promissory note extended maturity profile in millions 1,811 Financing Activities in H Apr 2016: 500m benchmark bond, 10-yrs term Jun 2016: 200m promissory note, 2-yrs term Hybrid bonds Bonds Promissory notes 1,200 1,250 1,000 Liquidity Syndicated loan (until 2020) Repaid Outstanding NC8 650* NC12 600* June *For illustrative purposes only. 8 August 31, 2016 Bertelsmann Interim Results 2016 Investor Conference Call

9 Group strategy Faster-growing, more digital and more international Group portfolio Key developments first half of Strengthening the core Reorganisation Implementation profitability improvement program Reorganization Expanded families of channels Newly-formed Bertelsmann Printing Group Foundation of Territory, Germany s largest provider of content communication 2 Digital transformation RTL Group: Extended digital advertising marketing PRH global market leader in e-books Gruner + Jahr with organic and acquisitive growth of digital business 3 Growth platforms Fremantle Media: Acquisitions in UK and Israel BMG: further catalog acquisitions/signings Relias Learning with strong growth and international expansion 4 China: Further investments, value creation Growth regions + Cooperation + India: More investment Brazil: Market entry BMG, expansion of education business 9 August 31, 2016 Bertelsmann Interim Results 2016 Investor Conference Call

10 Outlook full year 2016 Further increase in revenues and stable operating EBITDA Market development Global economic growth, increased uncertainty Mixed market conditions Group development Slight revenue growth Stable operating EBITDA 10 August 31, 2016 Bertelsmann Interim Results 2016 Investor Conference Call

11 Q&A-Session Investor Conference Call August 31, 2016 Bernd Hirsch Member of the Executive Board and CFO of Bertelsmann