Press Release

Bertelsmann raises its forecast for 2010 after

first-half leap in profits
• Group turnover rises to €7.4 billion
• Operating EBIT soars to record €755 million
• Group result improved by more than half-billion Euros
• 2010 Revenues and Operating EBIT expected to rise above previous year
• Group result for the full year to exceed € 500 million

Gütersloh, August 31, 2010 – The international media group Bertelsmann reports a surge in
profits during the first six months of the year 2010. Against the backdrop of an upturn in
Europe’s advertising markets and the long-view cost-cutting measures of the previous year,
operating EBIT from continued operations rose to €755 million for the period from January to
June (H1 2009: €497 million), a new record. The Group improved its result by more than half-
billion Euros, for a net profit of €246 million (H1 2009: €-333 million). Group turnover, now
adjusted for the British TV channel Five which has since been sold, amounted to €7.4 billion for
the first six months of the year (H1 2009: 7.1 billion €); Return on Sales increased to
10.3 percent (H1 2009: 7.0 percent).

“I am very pleased that business is going so remarkably well in the year of our 175th
anniversary. Our operating result has achieved a record high. The economy and especially the
advertising markets are friendlier. We now are profiting from having expanded our market-
leading positions, while also having lastingly improved our cost structures. This makes us
confident for the rest of the year, and that is why we are raising our profit forecast,” declared
Bertelsmann’s Chairman & CEO Hartmut Ostrowski. “We are well equipped for the future and
will systematically continue to develop our many different businesses. The entire field of
digitization will play an increasingly important role.”

Growth was mainly fueled by the advertising-driven divisions, RTL Group and Gruner + Jahr,
and by Random House where the U.S. business and digital activities have shown particularly
positive development. At RTL Group, all units played a part in boosting profits, and especially
Mediengruppe RTL Deutschland, Groupe M6 in France, and RTL Nederland.
Gruner + Jahr benefited from an improved advertising environment and has gained market
share. Arvato did well, as its services business thrived and the print sector made a recovery,
while Direct Group continued to adjust its portfolio during the period under review. The savings
from the previous year's costs program contributed significantly to the positive performance
across all of Bertelsmann's companies and divisions.

Page 1 of 6
The first half of the year also saw strong operating free cash flow from operations. Debt was
further reduced: at the reporting date of June 30, 2010, net financial debt was €2.78 billion
(December 31, 2009: €2.79 billion). Bertelsmann has significantly reduced its debt by more than
€800 million in the past twelve months. At 2.8, the Leverage Factor remains below the mark of
3.0. In relation to net financial debt, the factor was 1.2.

“Bertelsmann is financially solid. After the measures taken during the previous year, there was
no need for adjustments to the first-half balance sheet,” explained Bertelsmann’s CFO Thomas
Rabe. “We are raising our forecast for the full year. Instead of the stable revenue and operating
EBIT performance predicted at the Annual Press Conference in March, we now expect to see a
year-on-year increase in both, and a Return on Sales of around 10 percent. We are increasing
the predicted Group result corridor of between €400 and €500 million to over € 500 million.
Nonetheless, visibility for the important fourth quarter still remains low in the advertising
markets.”

On June 30, 2010, Bertelsmann had 100,151 employees worldwide (December 31, 2009:
102,704).

Corporate divisions:

RTL Group
Highlights
• RTL Group’s operating EBIT and return on sales reach record levels for a first half year
• All RTL Group profit centers report higher earnings
• RTL Group’s online platforms generate over 715 million video downloads in six months – an
increase of 50 percent

In the first half of 2010, Europe’s leading entertainment network benefited from powerful growth
in the TV advertising markets in Western Europe and comprehensive cost-cutting measures
introduced in the previous year. Both revenues and operating EBIT increased significantly. All
units of RTL Group contributed to the increase in earnings, but in particular Mediengruppe RTL
Deutschland, which outperformed the overall market, the French Groupe M6 and RTL
Nederland. RTL Group maintained its leading positions in audience markets in key countries,
even though almost all of the World Cup matches with the highest ratings were broadcast by
competitors. The German family of channels achieved a record 34.8 percent audience share in
the main target group. In France the digital free TV channel W9 continued its strong growth, and
the main channel M6 also significantly increased its revenues and operating EBIT in the first
half year. Fremantle Media, the production arm of RTL Group, also saw higher revenues and
operating EBIT, thanks to many successful international formats.

Page 2 of 6
Random House
Highlights
• Random House increases sales and profitability, especially in U.S.
• Rapid growth in e-book sales and digital publishing programs
• Pulitzer Prizes for three Random House titles

The world’s largest trade book publishing group, despite difficult market conditions, significantly
increased its first-half 2010 sales and operating EBIT, driven by major increases in revenues
and profits from its U.S. division and rapidly rising digital sales. Random House placed 138 titles
on the “New York Times” bestseller lists, including the Stieg Larsson Millennium trilogy, which
sold 6.5 million print and e-books in the U.S. and Germany during the half year. Random House
UK contributed one quarter of the “Sunday Times” bestsellers. Verlagsgruppe Random House
grew its market share in a flat overall market. Random House U.S. ebook sales surged 300
percent in the first six months, and comparably in Germany and UK. The company’s e-book
program in these countries cumulatively expanded to 20,000 titles. The UK Group’s Nigella
Lawson digital cooking app became an immediate global bestseller. Random House announced
the discontinuation of its publishing operations in Japan and Korea.

Gruner + Jahr
Highlights
• Operating EBIT up sharply due to above-market performance and 2009 cost-cutting 
• Corporate Publishing expands across Europe: Audi, Red Bull, Danone and other big
names turn to G+J for customer communication services
• G+J EMS leads coverage and quality in Germany’s mobile segment with over
650 million mobile page impressions a month

Europe’s leading magazine publisher recorded stable revenues in the period under review;
operating EBIT increased significantly as a result of comprehensive cost-cutting measures in
the previous year and a performance that outpaced the market. G+J was able to improve its
competitiveness by adapting its structures to new market conditions and further lowering its cost
base. Advertising revenues rose thanks to better overall economic performance, while G+J
gained additional market shares. In Germany, several new titles began regular publication
following successful market tests. The online marketing activities of G+J EMS were significantly
extended, while G+J EMS maintained its leading position in coverage and quality in the German
mobile segment. International business performance varied: business in China continued to
gain momentum, while performance in Eastern Europe, Italy and Spain was more modest in a
much weaker market environment. The Corporate Publishing division successfully expanded
across Europe. Meanwhile, the Prinovis and Brown print units saw a slight recovery.

Page 3 of 6
Arvato
Highlights
• Arvato takes over e-commerce services for the Real retail chain – from e-shops to
customer service, logistics and transport
• Arvato Digital Services gains new market shares and enters merchandising and
electronic software distribution business segments with new customers
• Arvato Infoscore awarded German innovation prize PPP (public-private partnership)
in the category of administration modernization

The media and communications service provider Arvato increased its revenues during the first
half year; year-on-year operating EBIT was roughly unchanged. The main growth drivers were
the French call center business and Digital Services division, particularly in Europe and South
America. In a persistently difficult economic environment, the print business slightly recovered
and achieved growth, primarily in offset. The market for print services on the Iberian Peninsula
remained difficult. In the Services division, Arvato was able to win new customers by offering
integrated services. Electronic software distribution grew and the value chain of the music
business was extended with the addition of music merchandising. Arvato also gained market
share in a number of relevant markets, including CD and DVD replication and the German print
business. To offset the late cyclical consequences of the economic crisis, Arvato again focused
on managing costs and optimizing processes, enhancing its competitive position while
continuing the transformation to an integrated provider of comprehensive solutions.

Direct Group
Highlights
• Spanish club Círculo de Lectores: new momentum through joint venture with
leading publishing and bookselling group Planeta
• Growth in Eastern Europe: Family Leisure Club Ukraine celebrates tenth anniversary
and expands
• French club France Loisirs maintains record profitability

The club and bookselling businesses operated by Direct Group recorded lower revenues in the
first half year as a result of divestments and declining membership numbers; year-on-year
operating losses were significantly curtailed thanks to ongoing cost-cutting measures. Falling
member revenues affected the markets in Germany and France in particular. Direct Group
continued to adjust its portfolio. The businesses in Portugal, Italy and Australia were sold in the
first half of the year. In Spain, however, the club and direct marketing business are gaining new
momentum through a joint venture between leading publishing and bookselling group Planeta
and Círculo de Lectores that will see Círculo club corners added to some 25 Casa del Libro
bookstores throughout Spain operated by Planeta. The partnership was approved by the cartel
office in July. In German-speaking countries, Direct Group completed the merger of Austria’s
Donauland club with Der Club Bertelsmann in Germany. Austrian club members have since
been managed from Germany.

Page 4 of 6
Overview of key figures (€ million, continuing operations)

January 1, 2010 – January 1, 2009 –

June 30, 2010 June 30, 2009
Consolidated revenues 7,358 7,085
Operating EBIT by division 796 543
Corporate/consolidation (41) (46)
Operating EBIT 755 497
Special items (30) (290)
EBIT 725 207
Financial result (317) (200)
Earnings before taxes from continuing operations 408 7
Income taxes (109) (135)
Earnings after taxes from continuing operations 299 (128)
Earnings after taxes from discontinued operations (53) (205)
Group profit or loss 246 (333)
attributable to: Earnings attributable to Bertelsmann 170 (368)
shareholders
attributable to: Earnings attributable to non-controlling 76 35
interests

Investments 365 381

Balance as of Balance as of
June 30, December 31,
2010 2009
Net financial debt 2,782 2,793
Economic debt* 6,016 6,024
Employees 100,151 102,704

The corresponding figures for the previous period have been adjusted in accordance with IFRS 5.

*Net financial debt plus provisions for pensions, profit-participation capital and present value of operating
leases (continuing operations)

Page 5 of 6
Division* Revenues Operating EBIT
January 1 – January 1 – January 1 – January 1 –
June 30, 2010 June 30, 2009 June 30, 2010 June 30, 2009
RTL Group 2,661 2,475 533 375
Random House 791 734 40 20
Gruner + Jahr 1,217 1,217 130 55
Arvato 2,312 2,243 99 103
Direct Group 532 581 (6) (10)
Total Divisions 7,513 7,250 796 543
Corporate/Consolidation (155) (165) (41) (46)
Total Group 7,358 7,085 755 497

*Continuing operations

About Bertelsmann AG
Bertelsmann is an international media company encompassing television (RTL Group), book publishing
(Random House), magazine publishing (Gruner + Jahr), media services (Arvato), and media clubs (Direct
Group) in more than 50 countries. Bertelsmann’s claim is to inspire people around the world with first-
class media and communications offerings – entertainment, information and services – and occupy
leading positions in its respective markets. The foundation of Bertelsmann's success is a corporate
culture based on partnership, entrepreneurial spirit, creativity, and corporate responsibility. The company
strives to bring creative new ideas to market and create value.
Bertelsmann celebrates its 175th anniversary in 2010.

For further questions, please contact:

Andreas Grafemeyer
Senior Vice President Media Relations
Phone: +49 – 52 41 / 80 24 66
andreas.grafemeyer@bertelsmann.de

Page 6 of 6