Bertelsmann Annual Results 2016

Transcription

1 Bertelsmann Annual Results Investor Conference Call March 28, 2017 Bernd Hirsch Member of the Executive Board and CFO of Bertelsmann

2 Summary and highlights Financial year Strong operating performance in Revenues of 17.0 billion, organically up by 0.9 percent Operating EBITDA up by 3.3 percent to 2,568 million, group profit up to 1,137 million Revenue share of growth businesses increased to 30 percent, share of declining businesses down to 4 percent Successful start into 2017, macroeconomic tailwind despite increasing political uncertainty Significant progress in strategy implementation Strengthening the core Strong market positions, profit improvement program ongoing Digital transformation Expansion of non-linear TV/Online video, e-books, services for digital businesses and customers Growth platforms Significant growth opportunities for online video, video production, music, e-commerce and financial services, education Growth regions Exposure in Brazil, India and China increased further Solid financial position Total equity close to 10 billion, equity ratio above 40 percent High cash conversion rate, significantly improved vs. previous year despite high investments Leverage factor in line with target, despite higher pensions and operating leases Commitment to prudent financial policies, solid liquidity, extension of debt maturities in 2 March 28, 2017 Bertelsmann Annual Results Investor Conference Call

3 Group key figures Revenues organically above prior year, further increase in operating EBITDA and group profit Revenues, in bn Operating EBITDA, in millions Group profit, in millions Reported Organic -1.1% +0.9% EBITDA margin 14.5% 15.1% ,485 2,568 1,108 1,137 3 March 28, 2017 Bertelsmann Annual Results Investor Conference Call

4 Divisions Operating EBITDA increase at RTL Group, G+J, BMG and Arvato; PRH and BPG impacted by adverse market conditions Continuing operations Revenues (in bn) Operating EBITDA (in millions) 1,355 1, EBIT EBITDA margin 22.5% 22.5% 15.0% 16.0% 8.1% 8.7% 22.6% 22.8% 8.3% 9.4% 7.1% 7.3% neg. neg. Note: restated 4 March 28, 2017 Bertelsmann Annual Results Investor Conference Call

5 Group key figures Diverse revenue base across regions and categories Revenues by region Revenues by category 6.7% Other countries 20.8% United States 34.6% Germany 25.9% Advertising 27.1% Own Products and merchandise 17.0 bn 17.0 bn 18.3% Other European Countries 13.2% France 34.0% Services 13.0% Rights and licenses 6.4% UK Revenue share FY, continuing operations 5 March 28, 2017 Bertelsmann Annual Results Investor Conference Call

6 Group profit High quality of earnings, lower special items; increased group profit despite higher taxes in millions Change Commentary Operating EBITDA 2,485 2, Profitable growth and earnings improvement program Depreciation & Amortization (613) (630) -17 Special items (191) (139) +52 Negative effects in from declining businesses, restructuring and integration costs EBIT 1,681 1, Financial result (230) (244) -14 Income tax expense (346) (419) -73 Normalized tax rate Earnings after taxes from discontinued operations Group profit 1,108 1, March 28, 2017 Bertelsmann Annual Results Investor Conference Call

7 Investments and free cash flow High investment level maintained, increased operating free cash flow in millions Investments Operating free cash flow Cash Conversion Rate 1, , Acquisitions 83% 93% 1,799 1, Intangible assets Other Note: restated 7 March 28, 2017 Bertelsmann Annual Results Investor Conference Call

8 Financial status Leverage factor in line with target despite higher pensions and operating leases Leverage factor 2.5x Economic debt Operating EBITDA 1) Economic debt (in millions) 2.3x 2.0x 2.7x 2.4x 2.5x 6,039 5,609 5, Coverage ratio > 4.0x 6.4x 7.5x 5.9x 10.1x Operating EBITDA Financial result )) 9.7x Net debt * less 50% par value of hybrid bonds Profit participation capital Operating leases Pensions 4,773 1, ,146 4, ,181 1,941 1, ,238 2,698 2, ,347 1,709 2, ,501 1, Equity ratio 25% Equity Total assets Credit rating 32% 41% 39% 41% 42% Baa1, outlook: stable BBB+, outlook: stable 1) After modifications 8 March 28, 2017 Bertelsmann Annual Results Investor Conference Call

9 Financial status Maturity profile extended in, next smaller amount not due until June 2018 in millions 1,373 Financing activities in FY Placement of 500m bond, term 10 years, coupon 1.125% in April Placement of 200m promissory note, term 2 years, coupon 0.09% in June Extension of 1.2bn syndicated loan with 17 banks to 2021 Repayment of 786m bond in September (originally 1bn) 1,200 Hybrid bonds Bonds Promissory notes 1,250 Liquidity Syndicated loan (until 2021) NC NC Dec *For illustrative purposes only. 9 March 28, 2017 Bertelsmann Annual Results Investor Conference Call

10 Group strategy Strategic framework since 2011 Megatrends Strategic priorities Digitization Two-speed economy 1 Strengthening the core Education Healthcare Business process transformation Demographic change 2 Digital transformation Target portfolio 3 Growth platforms Higher growth More digital 4 Growth regions More international More diversified 10 March 28, 2017 Bertelsmann Annual Results Investor Conference Call

11 Group strategy Achievements to a faster-growing, more digital, more international and more diversified group portfolio well on track Share of Group revenues in % Higher growth More digital Group (in bn) Growth businesses Stable businesses Structurally declining businesses ~ % 30% ~40% 64% 66% ~60% 16% 4% 2011 ~2020 Group (in bn) Digital % 17% Advertising, products, sales, customers 30% Distribution Other 70% % 19% 56% 44% ~20.0 >50% <50% ~2020 More international More diversified Group (in bn) Other countries US % % 7% 21% ~20.0 ~10% ~30% 2011 Media Services Education Europe 80% 72% ~60% 2011 ~ March 28, 2017 Bertelsmann Annual Results Investor Conference Call

12 Group strategy Mid-term financial targets achievable; successful transformation will be continued in bn ~20.0 Revenues Sold businesses 1) ~ Operating EBITDA ) Including effects from IFRS 11 changes 2011 ~ March 28, 2017 Bertelsmann Annual Results Investor Conference Call

13 Outlook Diversified group with three pillars, further increase in revenues and profit Group structure Outlook 2017 Market development Media Services Education Moderate economic growth; Mixed market conditions, political uncertainty Group development Slight revenue growth Stable operating EBITDA, continued investments to implement target portfolio Financial ambition level ~2020 Revenues< ~ 20bn EBITDA margin ~15% 13 March 28, 2017 Bertelsmann Annual Results Investor Conference Call

14 Q&A-Session Investor Conference Call March 28, 2017 Bernd Hirsch Member of the Executive Board and CFO of Bertelsmann