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Board
of the fi ve divisions RTL Group, Random House, Gruner + Jahr,
Arvato and Direct Group.
RTL Group businesses concentrate on television, radio and TV
production. With 45 television channels and 31 radio stations
in eleven countries, RTL Group is Europe’s leading entertainment
network. Its television business includes Mediengruppe
RTL Deutschland, Groupe M6 in France, the RTL channels in
the Benelux countries, Five in the U.K. and Alpha TV in Greece.
With its wholly owned subsidiary Fremantle Media, RTL Group
is also among the global leaders in the production and distribution
of TV content. RTL Group is a listed company in Brussels
and Luxembourg.
Random House, the world’s largest publishing group, has a
presence in 17 countries and encompasses over 120 independent
imprints, including Alfred A. Knopf and Doubleday in
the U.S., Ebury and Transworld in the U.K. and Siedler and
Goldmann in Germany. Random House publishes novels, nonfi
ction and youth titles in hardcover, paperback, audio and electronic
format, with more than 11,000 new titles published and
500 million units sold each year around the world.
Printing and publishing giant Gruner + Jahr is Europe’s leading
magazine publisher. Th e company publishes over 500 magazines
and digital content in more than 30 countries. Prisma
Presse, France’s second-largest magazine publisher, represents
the most signifi cant activity outside of Germany. Other
countries in which Gruner + Jahr operates include China, Italy,
Poland and Spain. Gravure printing company Prinovis is a
joint venture of Gruner + Jahr, Arvato (37.45 percent each) and
Axel Springer AG (25.1 percent).
Arvato is an international media and communications service
provider represented in over 35 countries around the world.
Arvato AG’s business units are Arvato Services, Arvato Print,
Arvato Digital Services and Arvato Systems. Th e company’s
business activities include customer loyalty programs, logistics
services, supply chain management, call and service center
activities, gravure and off set printing, optical storage media
production, IT services, address and database management
and direct media sales.
Direct Group operates media clubs, bookstores, online
activities, publishing houses and distribution companies in
16 countries. Direct Group businesses occupy leading positions
in their markets. Th e clubs include popular brands as
Der Club in Germany, France Loisirs in France and Círculo de
Lectores in Spain.
Bertelsmann Annual Report 2009
Strategy
Bertelsmann’s core business is focused on media content and
media-related services and production activities. While developing
the existing businesses further, Bertelsmann is focusing
on moving into new growth markets. Bertelsmann sees the
geographic core markets of Western Europe and the U.S. as the
focus of its future investments as well. Over the medium to long
term, Bertelsmann is working to expand its presence in major
growth markets such as China.
Most of the businesses hold leading positions in attractive,
developed markets. Future investments are focused on business
fi elds with strong organic growth.
In keeping with the objective of operational management,
Bertelsmann aims for 100-percent ownership of its businesses
wherever possible. At present, two divisions (RTL Group,
Gruner + Jahr) are not 100-percent controlled.
Th e Executive Board manages and develops Bertelsmann as
a unifi ed corporation. Th is means continually analyzing the
structure of the businesses and Group portfolio. Th e Executive
Board is focused on optimizing operations and utilizing
organic growth opportunities close to the core business. Noncore
businesses will be divested as the market permits. Th e aim
is to gradually enter new growth businesses with an eye on the
fi nancial targets.
In fiscal year 2009, the work of the Executive Board was
centered around developing and implementing measures to
respond to the global economic crisis. Scenario analyses were
used to simulate various courses the crisis might take, develop
alternative options for action and defi ne appropriate countermeasures.
In addition to a cautious investment policy and
greater orientation on cash fl ow in managing business, a series
of measures were taken to ensure liquidity. Signifi cant costcutting
measures were implemented across the board through a
variety of individual business-specifi c initiatives that produced
sustainable savings of some €1 billion.
Bertelsmann remains committed to accelerating organic growth
for the Group by optimizing the portfolio, investing in growth
businesses and promoting innovation. Th e achievement of
this goal must be seen in the context of the ongoing nature and
ramifi cations of the global economic crisis.
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