Bertelsmann Interim Results 2015

Transcription

1 Bertelsmann Interim Results 2015 Investor Conference Call August 31, 2015 Roger Schweitzer, Executive Vice President Corporate Treasury and Finance of Bertelsmann

2 Summary and highlights Interim Results Strong business performance Revenues increased by 2.5 percent Operating EBITDA up 4.4 percent Group profit significantly improved 2 Solid financial position Financial flexibility increased through hybrid bond Target rating Baa1/BBB+ with stable outlook 3 Strategy Progress on all strategic priorities Development of digital businesses and growth platforms as well as activities in international growth markets 2 August 31, 2015 Bertelsmann Interim Results 2015

3 Group key figures H Strong business performance; operating EBITDA at record high Continuing operations, in millions Revenues (in billions) Operating EBITDA Group profit EBITDA margin 13.0% 13.2% +2.5% +4.4% +54.8% ,018 1, H H H H H H Note: 2014 restated 3 August 31, 2015 Bertelsmann Interim Results 2015

4 Divisions H Revenues influenced by positive exchange rate effects; earnings growth at RTL, Penguin Random House, Arvato and Corporate Investments Continuing operations H H ,7 2, ,2 2,3 Revenues (in billions) 1,5 1,7 Operating EBITDA (in millions) ,9 77 0, ,5 25 xx 0,4 12 0,3 0,3 RTL Group Penguin Random House Gruner + Jahr Arvato Be Printers Corporate Investments EBITDA margin 23% 23% 11% 12% 9% 7% 7% 7% 5% 3% 8% 9% Note: 2014 restated 4 August 31, 2015 Bertelsmann Interim Results 2015

5 Group profit Significantly above prior year due to lower burden from special items and increase in operating earnings in millions H H Change abs. Operating EBITDA 1,018 1, Depreciation & Amortisation (289) (292) (3) Restructuring/Other (82) (118) (36) Impairments/Reversals (98) (5) +93 Capital Gains/Losses Special items (172) (101) +71 EBIT Financial result (125) (119) +6 Income taxes (178) (156) +22 Earnings after taxes from discontinued operations 3 3 ±0 Group profit Note: 2014 restated 5 August 31, 2015 Bertelsmann Interim Results 2015

6 Group key figures H Broad diversification by revenue sources and regions Revenue share, continuing operations Revenue sources in H (previous year) Regions in H (previous year) Rights and licenses 18.2% (16.6%) Services 26.5% (25.1%) 11.7% 8.7% (10.7%) (8.5%) Products and merchandise 27.0% 36.6% (28.6%) (39.3%) US 21.5% (18.9%) Other countries 6.8% (6.2%) 34.0% (35.2%) Germany 25.2% (24.9%) Advertising Rest of Europe 17.8% (18.8%) 5.9% (5.7%) UK 14.0% (15.2%) France 6 August 31, 2015 Bertelsmann Interim Results 2015

7 Financial status H High equity ratio; financial flexibility increased through hybrid bonds Economic Debt (in millions) Leverage Factor Net financial debt *less 50% par value of hybrid bonds 31 Dec , June , Dec , June 2015 *-2, June Dec June Target: < 2.5 Equity Ratio (in %) Pension provisions -1,181-2,257-2,699-2, June % 31 Dec % 30 June % Target: > 25% Operating leases Profit participation capital ,216-1, ,135-1, ,039-1, ,867 Rating Baa1, outlook: stable BBB+, outlook: stable 7 August 31, 2015 Bertelsmann Interim Results 2015

8 Financial status H Issuance of hybrid bonds in April 2015 has strengthened financial profile and extended maturity profile in millions Financing Activities in H Apr 2015: Issuance of two hybrid bonds with a total volume of 1.25bn, tenure of 60yrs, NC8/12 1,329 1,507 1,200 Hybrid Bonds Bonds Promissory notes 31 Dec Jun 2015 Liquidity Syndicated loan (until 2019) NC8 NC * * 100 1, * For illustrative purposes only. 8 August 31, 2015 Bertelsmann Interim Results 2015

9 Group strategy Development of digital businesses and growth platforms as well as activities in international growth markets Key developments first half of Strengthening the core Reorganization Implementation profitability improvement program Reorganization US book publishing and German TV business showing strong performance PRH integration showing very good progress Profitability improvement program Run-down of structurally declining businesses 2 Digital transformation Increase of online video views against prior year by more than 170% PRH global market leader in e-books Gruner + Jahr with organic and acquisitive growth of digital business 3 Growth platforms Expansion of education business: Acquisition Alliant, expansion Relias, investment Synergis BMG with further catalog acquisitions/signings Expansion of financial solutions business 4 Growth regions Brazil: Significant expansion of education business, market entry financial solutions China: Further investments, value creation India: More investments 9 August 31, 2015 Bertelsmann Interim Results 2015

10 Outlook full year 2015 Further increase in revenues and operating EBITDA Business performance Slight revenue growth Moderate increase in operating EBITDA Strategy Rapid transformation into a faster-growing, more digital and more international company Building education as a third pillar alongside media and services Strong business performance based on successful strategy implementation 10 August 31, 2015 Bertelsmann Interim Results 2015

11 Q&A