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Signifi cant Events in the Fiscal Year
Direct Group’s U.K. businesses were divested with eff ect from
January 1, 2009. Direct Group businesses in the Netherlands and
in the fl emish part of Belgium were also sold with eff ect from
January 1, 2009. Th e aforementioned businesses were included
in discontinued operations as of December 31, 2008.
In January 2009, Bernd Buchholz took over as CEO of
Gruner + Jahr from Bernd Kundrun, who resigned.
Also in January 2009, Bertelsmann AG issued a fi ve-year bond
in a €500 million transaction to ensure liquidity. Th is bond was
increased by €250 million in April 2009 to €750 million.
BMG Rights Management, founded in late 2008, has operated
as a joint venture with KKR since October 2009. Bertelsmann’s
share is currently 49 percent.
Overall Economic Developments
Th e global economy was characterized by a severe crisis which
continued in the early months of 2009. Slight growth tendencies
have become discernible again since the spring of 2009. According
to the University of Kiel´s Institute for the World Economy,
this trend is based primarily on increased production in the
emerging markets and positive eff ects from stimulus programs
around the world.
In the U.S., key factors in the end of the recession were government
interventions and positive eff ects from the lower exchange
rate of the dollar. According to the Institute for the World Economy,
the fi nancial markets in the U.S. further stabilized in the
course of 2009.
According to the Federal Statistics Offi ce, overall economic
performance in Germany declined 5.0 percent in 2009 from the
previous year when adjusted for price changes. Th e primary reason
for this trend was declining exports. Private consumption
proved to be a stabilizing element thanks to government stimulus
programs and the robust labor market.
Bertelsmann Annual Report 2009
Developments in Relevant Markets
Th e severe collapse of the global economy in 2008 and 2009
affected the markets relevant to Bertelsmann to varying
degrees.
Th e European television advertising markets were characterized
by sharp declines and high volatility in 2009. Despite a recovery,
especially in the fourth quarter, the German TV market shrank
9 percent year on year. Th e core countries of France, Great Britain
and the Netherlands suff ered and even greater impact, with
declines of 9 to 13 percent.
Th e trend of the book markets in the U.S., U.K. and Germany
was weaker in the fi rst months of fi scal year 2009. Th e U.S. book
market in particular was characterized by a general consumer
restraint and the depletion of inventory in the retail book business
during this period. Following a gradual recovery, the book
markets showed stable development overall compared to the
previous year.
Th e magazine advertising markets were severely aff ected by
the economic crisis in 2009, with the German market falling
11 percent and the French market declining 9 percent. Th e
overall trend in circulation revenues was largely stable.
Th e trend of the printing markets for magazines, catalogs and
advertising materials in Europe was signifi cantly weaker due
primarily to lower volumes and ongoing price pressure. While
the markets for storage media in Europe and the U.S. declined
due to the growing importance of digital forms of distribution,
the markets for services proved to be stable or only slightly
down despite price pressure.
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