Bertelsmann : Investor Conference Call – Präsentation zum 1. Halbjahr 2023

Bertelsmann

Interim Results 2023

Investor Conference Call

August 30, 2023

Rolf Hellermann, CFO of Bertelsmann

Interim Results H1 2023 -

Highlights and key topics

1. Solid business performance | Revenues increased to €9.7 billion | Operating EBITDA of €1.3 billion at high level | Group profit down
2. Sound financial position | Leverage factor at 2.3x | High equity ratio of 46 percent | Commitment to prudent financial policy
3. Comfortable liquidity position | Improved Operating Free Cash Flow | Cash Flow impacted by Boost initiatives
4. Strategy | National media champions | Global content | Global services | Education | Investment portfolio
5. Outlook | Market uncertainties | Robust portfolio | Moderate revenue growth | Stable EBITDA on comparable basis

1	August 30, 2023 · Bertelsmann · Interim Results 2023 Investor Conference Call

Group key figures -

Revenues up to €9.7 billion, Operating EBITDA and Group profit below previous year

Revenues, in € billions

Reported	+4.5%
Organic	+2.3%
	9.3	9.7
	H1 2022	H1 2023

Operating EBITDA, in € millions

Before streaming1)

1,495 1,347

1,429
	1,275
H1 2022	H1 2023

Group profit, in € millions

492
	260
H1 2022	H1 2023

1) Start-up losses streaming RTL Group (RTL+ GER, Videoland, RTL+ HUN, Salto and Bedrock)

2	August 30, 2023 · Bertelsmann · Interim Results 2023 Investor Conference Call

Divisions - Revenue and earnings growth at Penguin Random House, Arvato Group,

BMG and Education Group, RTL Group impacted by TV advertising markets

Revenues	3.3	3.1
in € billions
		1.9	2.1
Operating
EBITDA	610
in € millions		257	258
		376	0.4	0.4
			73	90

EBITDA	19%	12%	13%	12%	20%	22%
margin

					H1 2022		H1 2023
2.6	2.9
446	473
		0.8	0.7
				0.4
		14		0.2	0.2	0.2
		8	141
				74
					23	7
							1)
17%	16%	2%	1%	32%	33%	11%	3%

1. Business development of venture capital business of BI determined primarily on the basis of EBIT, EBIT of BI amounted to €-36 million (H1 2022: €29 million)

3	August 30, 2023 · Bertelsmann · Interim Results 2023 Investor Conference Call

Group profit - Below previous year due to challenging TV advertising markets and higher restructuring costs; partly compensated by lower tax expense

in € millions	H1 2022	H1 2023	Change	Comment
				Challenging TV advertising markets especially in Germany;
Operating EBITDA	1,429	1,275	-154	positive development of music, services and education
				businesses
Depreciation and amortization	-486	-563	-77
				Mainly restructuring costs at RTL (realignment publishing
Restructuring/other adjustments	-90	-216	-126	unit), PRH US (structural reorganization), Bertelsmann
				Marketing Services (closure of gravure printing locations)
Impairments/reversals	2	-4	-6
Capital gains/losses and FV
-15	17	+32
remeasurements
∑ Special items	-103	-203	-100
EBIT	840	509	-331
Financial result	-161	-158	+3
Income tax expense	-187	-91	+96 Mainly attributable to lower earnings before tax
Group profit	492	260	-232

4	August 30, 2023 · Bertelsmann · Interim Results 2023 Investor Conference Call