Values

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Report Statements Supervisory
Board
No risks endangering Bertelsmann’s continued existence
were identified in fiscal year 2009. Equally, from today’s
perspective, no substantial risks are apparent that could
threaten the continued existence of the Group.
Opportunities
Bertelsmann continually examines the technological opportunities
and challenges in the media and service markets. Ongoing
R&D eff orts at all levels help to identify, analyze and advance
potential areas of growth. Assuming a slight general improvement
in overall economic conditions, Bertelsmann will see
new opportunities for growth and profi tability arise through
the cost-cutting measures, effi ciency increases and innovation
initiatives already launched.
A number of emerging opportunities for Bertelsmann divisions
are outlined below: For RTL Group, the TV advertising markets
in some core markets could develop better than assumed.
Th ere are also opportunities in distribution and licensing. At
Random House, successful debut publications present opportunities.
Gruner + Jahr has moderate opportunities in specifi
c markets through the potential for increasing advertising
revenues and copy prices. At Arvato, the successful development
of new businesses, particularly in the service sector and through
the ongoing trend toward outsourcing, is creating additional
opportunities. Direct Group has opportunities through increased
cooperation with other businesses.
Bertelsmann’s potential opportunities will undoubtedly be impacted
by the continued uncertain economic developments.
Given the diversifi cation of the portfolio of businesses and its
entrepreneurial potential, Bertelsmann still sees itself in a position
to convert business opportunities into profi ts for the Group
successfully over the medium to long term.
Bertelsmann Annual Report 2009
Outlook
Th e global economy shrank signifi cantly over the course of 2009.
Th e University of Kiel´s Institute for the World Economy estimates
the decline at 1.0 percent. Following the severe slump in
the fi nal quarter of 2008 and the fi rst quarter of 2009, the global
economy is now in a moderate recovery phase. For 2010, the
European Central Bank (ECB) expects the global economy to
return to growth. Although the short-term outlook for the world
economy seems favorable, the ECB still feels that the strength
of the upsurge is uncertain. Th e emerging countries and the
positive eff ects of the economic stimulus programs worldwide
are expected to off er some stabilization. Th e ECB considers the
risks to the global economic outlook to be largely balanced. Th e
ECB also sees positive growth prospects for the world economy
in global trade and foreign demand within the euro zone.
A slight rise in gross domestic product of about 0.8 percent is
expected in the euro zone in 2010.
Despite improved expectations, the ECB feels that the dynamics
of the economic recovery will only be modest. Th is assessment
is based on the ongoing problems in the fi nancial sector, the
expected rise in unemployment, new increases in the price
of oil and other commodities and a growing protectionism.
Th e Institute for the World Economy expects GDP to grow by
2.0 percent in the U.S. and by about 1.2 percent in Germany.
Th e Institute expects rising domestic demand and higher private
consumer spending in Germany in 2010.
Traditional media markets in the geographic core markets of
Bertelsmann are not expected to grow at all or only very slightly
in 2010, while online advertising revenues might grow slightly.
In the trend years, the advertising markets overall are expected
to stabilize and may even experience moderate growth. In the
coming years, the global media industry will continue to be
characterized primarily by the progressive digitization of content
and distribution channels and by a shift in media usage.
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