Bertelsmann 2017 05 Eng

INSIDE
The magazine for employees – May 2017
2016 FINANCIALS
Rising
Results
EMPLOYEE SURVEY
Rising
Confidence
Bertelsmann
in Britain
Fifty Years of Business and Stories
Employee Survey 2016
All results in the current insert
n INSIDE de mai 2017

Supplément spécial à l’éditio
17
mayo de 20
INSIDE de Sonderbeilage zu INSIDE Mai 2017
especial de
Suplemento
Special Supplement
to INSIDE May 2017
yés 2016
Enquête auprès des emplo
Les résultats
a para em
pleados 20
16
Mitarbeiterbefragung 2016
Encuest
ados Die Ergebnisse
Los result
Employee Survey 20
16
The Results
More information on BENET:

www.benet.bertelsmann.com
News / Hot Topics /
Employee Survey
2016
EDITORIAL
A Positive
Perspective
B
ertelsmann employees – in other words, you – take
a much more positive view of the future than you
did just a few years ago. That is probably one of the
most gratifying results of the Employee Survey 2016.
And there is every reason for this confidence, as an
economic taking stock of the previous financial year shows.
In this issue, we present both to you: the results of the Em-
ployee Survey and the 2016 financials. In an interview, our CEO
Thomas Rabe elaborates on the strategic progress Bertelsmann
has made in becoming a much more international, more digital,
faster-growing and more diversified company. Chief Human
Resources Officer Immanuel Hermreck talks about the results of
the global Employee Survey, to which we have also devoted a
special supplement containing all the facts and figures.
The third main focus of this issue is a look at the UK, where
Bertelsmann has been active since 1967 – exactly 50 years. Today,
the country is one of our most important and creative markets.
This should not and will not be altered by Brexit. Bertelsmann
and Britain’s shared history is older than the country’s EU mem-
bership. Everything will be done to ensure that this connection
remains as alive and vital as ever – in the interests of both sides.
INSIDE traces the history of Bertelsmann in the UK, and pre-
sents our British entrepreneurs and businesses. In a guest article,
Publisher Gail Rebuck, a member of the House of Lords, outlines Karin Schlautmann
the implications of Brexit for the British creative industry and for Executive Vice President Corporate Communications
Bertelsmann. Bertelsmann SE & Co. KGaA
I wish you an inspiring read.
Yours,
Karin Schlautmann
INSIDE BERTELSMANN / MAY 2017 03

CONTENTS
INSIDE
06 Annual Press Conference
In Berlin, the Executive Board presented the figures for the 2016
financial year – an overview of all the major developments
14 Interview
Thomas Rabe on a Bertelsmann that has become more
international, more digital, faster-growing, and more diversified 06
16 Employee Survey 2016 FINANCIALS
Immanuel Hermreck on the Group-level results of the worldwide The business figures from the last year were
Employee Survey presented in Berlin at the end of March
SPOTLIGHT ON BRITAIN
20 Bertelsmann in Britain
INSIDE presents Bertelsmann’s history and businesses in
Great Britain
22 Foreword
Thomas Rabe believes that the UK will remain one of
Bertelsmann’s most important markets
23 Facts & Figures

Interesting facts & figures about Bertelsmann and the UK
24 Chronicle
Bertelsmann Group has had operations in the UK for
50 years – milestones
28 Guest Article
Baroness Gail Rebuck on Bertelsmann, the British, and Brexit 16
32 Global Brand MAJOR IMPROVEMENT
Ian Hudson is the first and only British member of the Bertelsmann Immanuel Hermreck presents the
Supervisory Board, chairs the BMRC, and is the CEO of DK results of the employee survey
36 British Bestsellers
The most popular authors, music stars and products of Bertelsmann
companies in and from the UK
38 Company Portrait 54 Print

The British television production company Boundless, which is part Prinovis UK has been mastering the challenges of Britain’s difficult
of RTL Group, specializes in Factual Entertainment formats printing market for more than 10 years
42 Entrepreneur Portrait 58 Education

As CEO of Penguin Random House UK, Tom Weldon heads Britain’s Deanna Roepke is managing the expansion of Relias from the U.S.
largest trade publishing group, with more than 50 imprints and
to Britain and Europe
2,000 employees
46 Music 60 Commitment
Year after year, many British colleagues support a variety of good
The UK is the world’s second most important music market after
the U.S. – but songwriters and musicians in other countries are also causes in multiple ways
looked after from Britain
50 Services 62 Magazine
Arvato UK concentrates on individual industries with growth News from the Bertelsmann world
potential and relies on innovative technologies in customer services
67 Publishing Credits
04 INSIDE BERTELSMANN / MAY 2017
INSIDE • MAY 2017
Leeds
Liverpool
Manchester
Sheffield
ENGLAND
Norwich
Birmingham
WALES
Cardigan
Cardiff Slough
London
Dover
Bournemouth
28
IMPRESSIONS FROM
THE HOUSE OF LORDS
Gail Rebuck shares her view on
the impending exit of the United
Kingdom from the EU
32
THE BRITON ON THE
SUPERVISORY BOARD
Ian Hudson on the special
relationships between
Bertelsmann and Great Britain

BALANCE SHEET 2016
The Restructuring
Is Paying Off
Happy about the very good

figures:
Immanuel Hermreck, Markus
Dohle, Bernd Hirsch, Thomas
Rabe, Anke Schäferkordt, and
Fernando Carro (from left to
right), prior to the announcement
of the 2016 business figures at
Bertelsmann’s offices in Berlin.

→ Strongest organic revenue growth in four years
→ Operating EBITDA reaches a record level of €2.57 billion
→ Group profit of €1.14 billion, which is the highest level since 2006
→ The revenue share of growth businesses increased to 30 percent
→ Digital revenues increase to 44 percent of total revenue
→ Revenues from outside of Europe increased to 28 percent

BALANCE SHEET 2016
Record Operating Results and

over €1 Billion in Profit
As part of the Annual Press Conference that took place at the end of March in Berlin, the
Bertelsmann Executive Board presented the 2016 business figures. They reflect Bertelsmann’s
success as it becomes a faster-growing, more digital, more international and more diversified
company.

T
he transformation of Bertelsmann the revenue share of digital activities to
is paying off. In the financial year more than 50 percent.
2016, the company achieved its Bertelsmann has also increased its
strongest organic revenue growth international presence in recent years.
in four years, as well as record operating In 2016, the Group generated 28 percent
results and profits that once again ex- of its revenue outside of Europe (2011:
ceeded €1 billion. Despite the negative ex- 20 percent). This means that in absolute
change rate effects and portfolio effects, terms, Bertelsmann’s revenues from out-
reported revenues last year remained side of Europe have increased by more
almost completely stable at €17.0 bil- than 50 percent since 2011. Alongside
lion (previous year: €17.1 billion). The Brazil, India and China, countries where
Operating EBITDA rose to a record level Bertelsmann has business activities in
of €2.57 billion (previous year: €2.49 bil- the areas of media, service and education,
lion), although start-up losses arose for the Group’s strategic activities are partic-
digital businesses and new businesses. ularly focused on the U.S. In the future,
Despite the higher tax expenditure, group Bertelsmann is aiming to generate around
profit yet again exceeded the previous 30 percent of its revenue in the U.S.
year’s figure, reaching €1.14 billion (previ-
ous year: €1.11 billion).
The business figures reflect the way
“Bertelsmann has
that Bertelsmann is successfully be-
coming a faster-growing, more digital, never before been
more international and more diversified
company. Since 2012, the company has as profitable as it
is today.”
invested more than €4 billion in growth
businesses and digital businesses and the
revenue contribution made by fast-grow-
ing businesses has increased to 30 THOMAS RABE
percent (from 20 percent in 2011). Bertels-
mann aims to increase this contribution The strategic progress made since the
to 40 percent in the coming years. The beginning of 2016 is also evidenced by
revenue share of structurally declining the diversified Group structure, which
businesses, however, has decreased from consists of eight corporate divisions.
16 percent to around 4 percent in the last Bertelsmann announced the first ever total
five years. annual figures for these divisions at the
Annual Press Conference on March 28.
INCREASE IN DIGITAL “Bertelsmann has changed signifi-
REVENUES cantly in recent years,” said Thomas
The revenue share of digital activities, Rabe, Bertelsmann Chairman and CEO.
which Bertelsmann is labeling as one “Our business figures for 2016 show once
entity for the time being, has also been again that the restructuring is paying off.
Faster-growing, more digital, more constantly growing since 2011. Back then, Bertelsmann has never before been as
international and more diversified: digital activities generated 30 percent profitable as it is today. We are now grow-
At the press conference, the members of the (€4.6 billion) of the company’s revenue. ing noticeably faster, and we are more
Bertelsmann Executive Board (pictured with In 2016, this figure had already reached digital, more international, and more di-
Karin Schlautmann, Executive Vice President 44 percent, representing €7.4 billion. The versified. We are continuing to develop in
Corporate Communications of Bertelsmann, share of digital revenue rose across the this way. To do this, we will invest many
center) outlined the Group’s strategic progress. board within this category, including in billions of euros in our growth businesses
the areas of digital advertising, products, and digital businesses between now and
sales and customers. Some specific ex- 2020. We will be expanding our interna-
amples include the RTL Group, which is tional business operations and alongside
now one of the world’s leading providers our activities in Brazil, India and China, we
of online videos; Penguin Random House, will be particularly focusing on the U.S.”
which has a larger e-book portfolio than Despite the negative exchange rate
any other publishing group in the world; effects and portfolio effects, Bertelsmann’s
and Arvato, which provides services for revenues in 2016 remained almost com-
major high-tech corporations. The busi- pletely stable at €17.0 billion (previous
ness models of companies such as BMG year: €17.1 billion). The organic growth
and the Bertelsmann Education Group are rate was 0.9 percent and promising devel-
also tailored for the digital age. In the com- opments in the organic growth rate were
ing years, Bertelsmann aims to increase seen at the RTL Group (3.2 percent), →

BALANCE SHEET 2016
Group strategy: target portfolio –

Arvato (3.9 percent), BMG (12.8 percent), Faster-growing
Higher growth
and the Bertelsmann Education Group
(15.9 percent).
Share of Group revenues in %
Bertelsmann’s operating EBITDA rose
by 3.3 percent (€83 million) to the record Group (in € bn)
level of €2.57 billion (previous year: 15.3 17.0 ~20.0
€2.49 billion), despite the start-up losses
20% In
incurred by digital businesses and new Growth businesses
30% b
businesses. At Bertelsmann Education ~40%
Group and RTL Group alone, these losses
totaled €-71 million. The companies
contributing to the increase in earnings
included RTL Group, BMG, Arvato, and the
Stable businesses 64%
online training provider Relias Learning. At
15.1 percent (previous year: 14.5 percent), 66%
the EBITDA margin once again exceeded the ~60%
record level achieved in the previous year.
Group profit was at its highest level in
Structurally
10 years, despite the higher tax expendi- declining businesses 16%
ture. It exceeded the previous year’s fig- 4%
ures by 2.6 percent, reaching €1.14 billion 2011 2016 ~2020
(previous year: €1.11 billion). This positive
development is due to the increase in op- 1 March 28, 2017 · Annual Press Conference
erating earnings and the lower costs from

special items in comparison to 2015. Group strategy: target portfolio –
More digital
More digital
STRONG CORE BUSINESSES
Thomas Rabe emphasized that Bertelsmann Share of Group revenues in %
had made significant advances with all
four strategic priorities in 2016: strength- Group (in € bn)
15.3 17.0 ~20.0
ening the core, digital transformation,
Advertising, products, 13%
expansion of growth platforms, and ex- D
pansion in growth regions. Digital sales, customers 30% 25% (
The core businesses were strengthened Distribution 17% 44% A
>50%
in many ways. For example, the RTL Group
family of channels expanded even more 19% P
and Mediengruppe RTL Deutschland S
secured the rights to broadcast 28 of the
C
German national team’s football fix-
tures. The creative triumphs of Penguin Other 70% D
Random House included numerous 56% G
<50%
global bestsellers such as the thriller “The
Girl on the Train” by Paula Hawkins, as
well as “Me Before You” and “After You”
by Jojo Moyes. Gruner + Jahr formed
Territory, Germany’s leading content 2011 2016 ~2020
communication provider, partnered with
Landwirtschaftsverlag to found Deutsche 2 March 28, 2017 · Annual Press Conference
Medien-Manufaktur, and worked together

with Mediengruppe RTL Deutschland to marketing company for European digital Arvato grew as a service provider for IT and
establish Ad Alliance. video advertising. Penguin Random House high-tech companies. When combined, the
Last year, Bertelsmann also made grew its portfolio of e-books and now offers social media following of the various com-
progress with the digital transformation more than 128,000 titles. In its core mar- panies and editorial offices belonging to
of its businesses. The RTL Group’s on-de- kets of Germany and France, Gruner + Jahr Bertelsmann comes to a total of 1.6 billion
mand video services, web productions, generated a high proportion of its revenue followers on Twitter, Facebook, Google+
web channels, and multichannel networks from digital services. It also expanded its and Youtube.
amassed a total of 274 billion views in 2016. digital online marketing activities and took The expansion of growth platforms
This equates to a year-on-year increase of over Groupe Cerise, which is one of France’s was also successful. Fremantle Media
161 percent. The takeover of online video leading moving image providers. Further- strengthened its position through new
marketing company Smartclip enabled more, the “Stern,” “Brigitte” and “Gala” participations and acquisitions. One of the
the group to strengthen its position as a websites all achieved record hit counts. companies taken over by the RTL Group

Group
More strategy: target portfolio –
international
More international
“We are
growing notice-
Share of Group revenues in %
Group (in € bn)
ably faster, and

15.3 17.0 ~20.0
Other countries 6% 7% ~10% • Increased focus on countries with
U.S. 14%
21%
~30%
we are more
higher growth potential
• Revenues outside of Europe increased
digital, more
by more than 50% since 2011
• Expansion of US activities via organic
international
growth and acquisitions along all
three pillars
and more
Europe 80%
72% Media Services Education
~60%
diversified.”
THOMAS RABE
2011 2016 ~2020
Konzernstrategie: Zielportfolio –
3 March 28, 2017 · Annual Press Conference
Diversifizierter
More diversified
2011 2016
Medien
Media Dienstleistungen Bildung
Services Education
4 28. März 2017 · Bilanzpressekonferenz
subsidiary was the Israeli company Abot tics network and made various successful Bertelsmann also increased its business
Hameiri, which specializes in entertain- sales. The Arvato Financial Solutions activities in growth regions last year.
ment, scripted reality and drama. The business unit reported positive business Among other activities, BMG expanded
group also enjoyed international success performance. In the education sector, its partnership with Alibaba Music,
with various productions, including Bertelsmann strengthened its subsidi- the music division of the well-known
“Deutschland 83” and “The Young Pope.” ary Relias Learning. The online training Chinese e-commerce platform. The Ber-
Among other deals, BMG acquired a ma- provider acquired six companies and ex- telsmann Asia Investments fund (BAI) in-
jority shareholding in the ARC Music label panded into other European countries as vested in 27 new start-ups, and the gains
and concluded one of the most high-pro- well as into China. The e-learning provider it made from sales of investments made a
file deals in the music industry by signing Udacity also expanded into other coun- positive contribution to the Group profit
Pink Floyd legend Roger Walters. Arvato tries. It is now offering its Nanodegree pro- figure. Bertelsmann also made invest-
SCM Solutions expanded its global logis- grams in Germany, Brazil, China and India. ments in numerous start-ups in →

BALANCE SHEET 2016
Karin Schlautmann, Executive Vice President Corporate Communications of Bertelsmann, chaired the Annual Press Conference in Berlin. Right: In the winter
garden at the Bertelsmann offices, a 2.5-meter-tall sculpture uses blue LEDs to depict a Bertelsmann “B.” The walls behind the pillar pick up the main design
feature of the event and of the new annual report – a blue wave.
Thomas Rabe being interviewed after the conference by N-TV reporter Isabelle Körner.

(previous year: €1.3 billion). The Group
acquired various companies, including
Smartclip and Groupe Cerise, as well as a
range of businesses in the TV production,
Journalists follow music and education sectors.
the progress of
the Annual Press MAJOR INVESTMENTS
Conference at the Investments were also made in music
Bertelsmann offices. catalogs and packages of film rights.
Furthermore, Bertelsmann invested in 43
new start-ups last year. Through its four
investment funds alone, the company
India and Brazil, including in the Indian ings. This gives us the freedom to con- has invested more than €500 billion
FinTech company Lendingkart and the tinue pursuing strategic transformation in young enterprises all over the world
Brazilian company NRE Education Group. with great energy.” since 2012.
Bertelsmann CFO Bernd Hirsch said, As in the previous year, continuing At the end of the fiscal year, the Group
“Last year, we strengthened the compa- business expansion meant that the vol- had a total of 116,434 employees world-
ny’s sturdy financial position even more. ume of investment was high in 2016. wide. In 2016, 1,225 people completed
Bertelsmann has a strong operating cash Including the assumed financial debts, vocational training at Bertelsmann compa-
flow, a high equity ratio and stable rat- Bertelsmann invested €1.2 billion last year nies in Germany.
Group strategy: Financial performance – Significant growth in revenue

Group strategy: financial performance –
and profit, despite divestments
Significant revenue and operating EBITDA growth despite divestments
in € bn
~20.0
+3.0
17.0
Revenues
15.3
Sold +3.5
businesses1) 1.8
~3.0
+0.4
2.6
Operating +0.4
EBITDA 2.2
2011 2016 ~2020

1) Including effects from IFRS 11 changes
5 March 28, 2017 · Annual Press Conference

BALANCE SHEET 2016
“Very Positive Developments”

In an interview with Bertelsmann Chairman and CEO Thomas Rabe,
he provides a positive summary of the strategy process that began in 2012 –
and sets out the next strategic goals for the future.
F
aster-growing, more digital, more regional expansion of our businesses. In The RTL Group is one of the biggest play-
international and more diversi- keeping with this, we have further devel- ers in the online video market. Arvato
fied – that is what Bertelsmann oped our businesses, withdrawn from provides services for the world’s most
is aiming for. It sounds very structurally declining businesses, and important high-tech corporations – and
ambitious, why have four goals at the established new businesses. For example, BMG and our education providers are
same time? since 2011, we have invested more than reaping the benefits of digitizing their
Thomas Rabe: These four aspects do belong €4 billion in the area of digital and growth business models. These factors and others
together but the order in which they ap- businesses alone. are reflected in our portfolio, with digital
pear is not random. Five years ago, when businesses now generating 44 percent of
we formulated our strategy, all of the How would you summarize the develop- Bertelsmann’s revenue. In 2011 this figure
Group’s committees were quick to agree ments to date? was just 30 percent.
that growth needed to be the highest prior- In recent years, there have been some
ity. Growth is the foundation. It enables us very positive developments at Bertels- What are the signs that Bertelsmann is
to invest in our businesses and in develop- mann. Despite carrying out an extensive becoming more international?
ing our employees. restructuring process, we have been able The fact that in recent years, there has been
to increase our operating earnings by an a significant increase in the proportion
How do the other goals fit in with this average of around €100 million each year of our revenue that come from outside
plan? since 2012. The most recent figure is a of Europe. In 2011, it was 20 percent and
They make a direct contribution. Take record high of €2.6 billion. At the same by 2016, this figure had already reached
digitization, for example. It is probably time, we have made significant strategic 28 percent. A particularly important factor
the most important megatrend of our progress. These achievements include the in this was the expansion of our business
times and the growth rates of our digital integration of Penguin Random House, the activities in the U.S., which is the world’s
businesses are therefore very high. It is a full acquisition of BMG and Gruner + Jahr, largest and most innovative media market.
similar story with internationalization. and the formation of our education busi- In the medium term, we want to be gen-
Many market segments in China, India nesses – to name but a few. erating 30 percent of our revenue in the
and South America are growing much U.S. However, we have also increased our
faster than they are in Germany and Eu- To what extent have these developments presence in our strategic growth regions of
rope, for example. Expanding our pres- really made Bertelsmann a faster-grow- China, India and Brazil.
ence in these regions will therefore result ing, more digital, more international and
in faster growth. more diversified company? And where are you up to with diversifi-
We are already a lot closer to our target cation?
And what about the fourth point, the one portfolio. Over the last five years, our The Bertelsmann portfolio has never
about becoming more diversified? growth profile has improved significantly. before been as broad as it is today. It has
This is partly about growth as well – we In 2011, our fast-growing businesses only eight divisions, which are built around
want to expand the business areas that are made up 20 percent of our total revenue. the three pillars of media, services and
growing quickly. But it is also partly about By 2016, this figure had already increased education.
reducing our reliance on single sources to 30 percent. Moving forward, we want
of revenue. to increase this share to 40 percent. In the The intention is that Bertelsmann’s port-
last five years, we have also been scaling folio will continue to develop over the
You were talking about the 2012 strategy back our structurally declining businesses. coming years. What effects will this have
process just now. What has Bertelsmann They now contribute less than five percent on the business growth?
done over the last five years in order to of Bertelsmann’s total revenue, down from In the medium term, we are aiming for
meet its goals? 16 percent in 2011. revenues of €20 billion and an operat-
For us, the four strategic priorities were ing EBITDA of €3 billion. If we continue
and still are as follows: strengthening And how are the other categories looking? with the successful implementation of
our core businesses, the digital trans- Our digital revenues are also growing our strategy, I am confident that we can
formation of this core, establishing and vigorously and many of our divisions are achieve this within the next three to
expanding growth platforms, and the market leaders in their respective sectors. five years.

“We are
already
a lot closer
to our
target
portfolio.”
THOMAS RABE

EMPLOYEE SURVEY 2016
Trust and Confidence

Have Increased
Chief Human Resources Officer Immanuel Hermreck talks about the
Group level results of the Employee Survey 2016
I
mmanuel Hermreck has successfully ment. Our aim is to keep improving and
supervised a number of Bertelsmann making Bertelsmann better.
Employee Surveys, sharpening their
profile, and advancing their interna- What, specifically, are the main findings
tionalization. He says about the 2016 of the survey?
project: “We are very happy with the One essential result is that employee
results. We have significantly improved confidence and trust have increased since
in key categories.” In an interview with 2013. Our colleagues take a positive view of
INSIDE, he discusses those categories, and their future and that of the company. We
where he still sees room for improvement. are seeing significant improvements in the
areas of identification and engagement,
Mr. Hermreck, as a Chief HR Officer, as well as direction and goals. Employees
how would you rate the results of the feel well-informed about the company’s
Employee Survey 2016? strategy, course and plans. Likewise, the
Immanuel Hermreck: I’m very satisfied with employees’ perceived job security has
the results – and we all can be happy with increased significantly in comparison to
them, starting with the 89 percent par- the last survey. In addition, there were
ticipation across all eight corporate divi- positive results for issues that are import-
sions. Only few companies achieve such ant to the employees, such as employer
a high participation rate for such surveys. desirability, corporate training/develop-
This shows the tremendous interest ment, and health.
our employees have in helping to shape
Bertelsmann. I was also very happy Is there a result that you were particu-
about the results themselves. Employee larly happy about?
satisfaction is higher than it was in 2013 Besides the general uptrend and the high
– especially with regard to the topics we participation rate, I am delighted that
focused on improving following the last we identified the right areas of potential
survey. This underlines the fact that we
are on the right track. Of course, the pres-
improvement after the 2013 survey – and
that the measures we took are having an “We are on the
right track.”
ent survey also revealed areas where we effect. We can also be proud of the fact
need to improve. But that is precisely the that the evaluations of the supervisors
aim of such a survey, which serves as a have improved further from their al-
strategic tool for organizational develop- ready-high past levels. Leadership → IMMANUEL HERMRECK

Chief Human Resources
Officer Immanuel Hermreck
is in charge of Bertelsmann’s
worldwide Employee Survey.

EMPLOYEE SURVEY 2016
is an extremely important subject at Which means what exactly? So what happens now?
Bertelsmann, and our executives take The goal should be to have our employees At Group level, we have now identified
their responsibility very seriously. This is participate in the company’s success. This the topics we need to work on. At every
a fantastic affirmation of the fact that we is part of Bertelsmann’s identity. We want company and team, it is up to the execu-
nurture our executives along their devel- to analyze how we can be even more effec- tives to closely examine their own results,
opment path and thus help them achieve tive in this area. discuss them with their teams, and then
peak performance with their teams. take appropriate actions. To this end, we
What were the differences in the Employee offer our managers a wide range of support
... and what results does Bertelsmann Survey results among the various com- options for working with the results, such
still need to improve on? pany divisions? as coaching and digital tutorials. Beyond
There are two issues that we need to take Like the high participation rate, the positive this, I recommend that the companies
a closer look at: On the one hand, in- trend in the results on key issues extended take advantage of the other dialog formats,
volving employees in change processes, across all divisions. That, too, is one of the such as the “January Talks,” to monitor the
which in this day are part of the ongoing gratifying results of the Employee Survey progress of the measures and the satisfac-
development of our businesses. On the 2016. It is also especially nice to see that the tion with their teams on a regular basis.
other hand, the question of appropriate employees feel well-informed and look to We will track these measures in a separate
remuneration and participation in the the future with confidence, even in those reporting process.
economic success of the company. divisions that are in the midst of the trans-
formation process.
Important Facts
Countries: 47 The five questions showing the greatest change
Languages: 15 in comparison to 2013*
Companies: 384
Positive change
Online participation: 63%
(+ 18 %age points) 1. My company offers me job security. +9
2. My company is committed to social and cultural activities. +8
Results reports: 13,535
(+ 2,027) 3. I am satisfied with the programs and services provided by my company
to promote my health. +7
4. I feel well informed about the opportunities to move within the division or Group. +6
5. I am familiar with my company‘s strategy so that I could explain it to
a new colleague. +5
Participation rates
Bertelsmann worldwide: 89%
RTL Group: 84%
Negative change
Penguin Random House: 92% 1. I benefit appropriately from the company‘s financial success. -8
Gruner + Jahr: 84% 2. Employees in my team are well prepared for new assignments. -1
BMG: 92% 3. I am able to maintain a healthy work-life balance. -1
Arvato: 90% 4. I have the resources I need to do a good job. -1
Bertelsmann 5. In my team, we stick to the agreements we have made. -1
Printing Group: 83%
Bertelsmann * Comparison of results for the same questions in the Employee Survey 2016 and 2013,
Education Group: 90% with deviations shown in percentage points

More information on BENET:
“We have Special Supplement to INSIDE May 2017
www.benet.bertelsmann.com
significantly News / Hot Topics /
improved Employee Survey

2016
in key
categories.” More detailed information
in the special supplement to
IMMANUEL HERMRECK Employee Survey 2016
the Employee Survey 2016
The Results in this issue
What Happens after

the Employee Survey?
Group Executive Board, Supervisory Board and Group Supervisors present the results to their teams at team
Works Council are informed about Group results (March) meetings and jointly analyze strengths and potential
↓ for improvement (May)
↓
The results are made available as online reports and Together with their supervisors, the teams derive action
printouts (March) plans, which they then agree with their management
↓ teams (May)
Executives receive their results reports (March) ↓
↓ Teams start to implement their action plans (May)
Executives read and interpret their own results reports ↓
and plan the follow-up process with the team (April) Executives document the follow-up process in online
↓ reporting (June)
Executives receive a wide range of support on People- ↓
net, through their local HR department, and from Ber-
telsmann University (April) The teams use the next “January Talk” or “Team Talk” to
track the progress of the action plan (January 2018)
↓

Since 1894, Tower Bridge
has linked the London
boroughs of Tower Hamlets
and Southwark across the
River Thames. Britain will
soon need new business
bridges across the English
Channel to Europe.

BERTELSMANN IN BRITAIN • FOCUS
Bertelsmann –
a Bridge to the
British Bertelsmann has been active in the United Kingdom
for 50 years. The country is one of our most important
commercial and creative markets. Nor is this expected to
change after Brexit. As Supervisory Board member Ian Hudson says:
“Relations between Bertelsmann and the British are older than our
membership in the EU. They were solid before the accession, and they
will remain so after the exit.” He believes that Britain will continue to
need bridges to Europe – and that Bertelsmann can be such a bridge.
To mark half a century of Bertelsmann in the UK, but also against
the backdrop of Brexit and its consequences, INSIDE takes a look
across the English Channel and introduces you to our company’s
history and present, its businesses and its protagonists in Britain.

BERTELSMANN IN BRITAIN • FOREWORD
The Future Belongs to Europe

an important source of artistic creativity and cultural diversity.
But it is also my personal belief, as a European through and
through. I went to the European School in Brussels. Speaking
four languages was as much a matter of course there as having
schoolmates from all over the world. I worked in Brussels at the
EU Commission and later in Luxembourg, another city with a
pronounced European identity. And today I lead the world’s most
international media, services and education company. I feel that
being able to move around this world largely without barriers,
doing business and meeting people from a wide range of different
backgrounds, is the greatest privilege.
Because of my personal background, the Brexit vote came as a
shock to me – but also because in view of European history I am
firmly convinced that the future belongs to a united Europe. It is
by no means obsolete. Neither politically nor economically, nei-
ther socially nor culturally. Which is why it is clear that we must
be constructive about the British leaving the EU – to ensure that it
doesn’t result in them
turning their backs on
“We need the Europe.

Politically, we need
softest possible
agreements that keep
Britain closely
Brexit.”
connected with the
rest of Europe. We need
open market access
THOMAS RABE and cooperation on se-
curity issues. In short,
we need the “softest”
possible Brexit. Even if Bertelsmann itself is not as directly af-
fected by trade barriers as traditional import-export companies,
Thomas Rabe in the long term, protectionism is detrimental to any national
Chairman & CEO of Bertelsmann – and a European economy. I currently represent and advocate this position in
through and through many conversations – with our CEOs in Britain; the Penguin
Random House writer and politician Nick Clegg, whom I will
welcome at my residence shortly; with the British Ambassador,
Sir Sebastian Wood, whom I visited in Berlin in March; and with
many good friends in the UK and the rest of the world.
I
Bertelsmann will continue to build bridges to the British.
n 1967, Bertelsmann first ventured across the English Channel Britain remains our fourth-largest market; its people valued part-
and took up its activities in Britain with Mohndruck’s British ners for our company; the media metropolis of London, and the
branch, Mohn-Gordon Ltd. Some five years later the country industrial city of Liverpool, our home.
entered the European Economic Community, which later
became the EU – and unfortunately the UK will now be leaving
again. Perhaps the United Kingdom never came to care deeply Yours,
about a united Europe over the decades. Nevertheless, Britain has Thomas Rabe
always been and will always remain an integral part of Europe,
even after Brexit.
This is Bertelsmann’s position, as an international company
that generates revenues of €1.7 billion in Britain alone, employs
5,500 people there, and deeply appreciates the United Kingdom as

BERTELSMANN IN BRITAIN • FACTS
Impressive facts
Strong content
Bertelsmann is a strong player
in the content business in Great
Britain: roughly three-quarters
Great Britain is an equally promising and challenging
of its British revenues come
(media) market – where practically all our divisions
from this segment – only in
are represented. Together, Bertelsmann companies
the United States is the share
employ around 5,500 colleagues there.
attributable to Bertelsmann‘s
creative businesses higher.
Prinovis UK printed
155,000 tons
of paper in 2016.
Prinovis UK produces a Penguin Random
weekly volume of around House UK
2.5 million copies just of
“Weekend,” the supplement encompasses more
of the “Daily Mail.” than 50 imprints.
Fremantle Media UK produced around
360 hours
DK in London employs more
than 500 employees from
around the world, who speak
22 different native languages. of TV programming for the UK market in 2016.
BMG‘s marketing plan for an artist covers

Robotics software used by
Arvato UK (“Robotics Process 18 months – compared to the few
Automation”) takes months that are often the standard at other
42 seconds
music companies.
to process a tax debit, instead 80 percent of the BMG portfolio

of the usual five minutes. consists of works by established artists;
20 percent comes from new talent.
BERTELSMANN IN BRITAIN • CHRONICLE
Bertelsmann‘s Big Birthday

in Britain
Britain is not only one of Bertelsmann‘s most important markets worldwide, but also one
of its oldest. In 1967, Bertelsmann took its initial steps/plunge across the English Channel,
only five years after the company had established its first branch in a non-German-
speaking country, in Spain. At the time, Britain was not even a member of the European
Economic Community. Today, the country has decided to exit from its successor organization,
the EU. INSIDE looks back on the milestone of Bertelsmann’s 50th anniversary in the UK.
Songs of the female soul trio The Three Degrees

were among the hits of Ariola Eurodisc Ltd., founded
in Great Britain in 1977.
The Leisure Circle
in Southampton
(picture from 1980,
bottom), right:
catalog of “The
Leisure Circle”
Reinhard Mohn (from 1981).
→
1967 1972 1977 1977
Bertelsmann first goes to Britain. A joint venture with Thomson A year par excellence for Bertelsmann in Because music in Britain was just
On August 1, Reinhard Mohn Publication Ltd. results in Britain: Bertelsmann enters the British as culturally and commercially
founds Mohn-Gordon Ltd., a Bertelsmann Thomson Fachverlag. club business with the founding of the crucial back then as now, that
small Mohndruck sales office in Bertelsmann own two-thirds of the Leisure Circle. In 1988, the Leisure same year – 1977 – Bertelsmann
London, Here, too, a Bertelsmann shares. Circle is merged into the book club founds its own label, Ariola UK,
success story begins in print. group, Book Club Associates (BCA), in which goes on to become BMG
which Bertelsmann holds 50 percent of Records UK.
the shares. In 2008, Bertelsmann sells
its British club business.
With the majority acquisition of the
American publishing house Bantam
Books, the latter’s British subsidiary
Transworld Publishers becomes part of
Bertelsmann, giving it a footprint in UK
trade publishing. Nearly 40 years later,
this will culminate in the combination
of Random House and Penguin merging.
But more about that later!

The TV talent show “Pop Idol” (picture at top) was
launched in Great Britain in 2001. Many spin-offs
followed around the world. Bottom picture: Finalists
and judges from “The X Factor,” a casting show that
began airing in Great Britain in 2004.
“The Street Lawyer” by best-
selling author John Grisham was
published in Great Britain in
1998 by Century.
BMG headquarters In 1997, the launch of UK’s new

in London (picture TV broadcaster Channel 5 was
from 1992). advertised with the Spice Girls.
→
1986 1997 1998 2000
In the course of following a resolute With the founding of CLT-UFA, Once again, a major transaction RTL Group is born from the merger
strategy of international expansion, Bertelsmann acquires shares in the in the U.S. has ramifications for of CLT-UFA and the British company
G+J now turns its attention to British TV broadcaster, Channel 5. the UK business: In New York, Pearson TV. Pearson contributes a
Britain as well. A new publisher This marks the start of Bertelsmann’s Bertelsmann completes the successful TV production company –
is founded in London; its first TV activities in the UK, which will acquisition of Random House – Fremantle Media – to Europe’s
magazine, “Prima,” launches in this later come to concentrate on the TV in the UK, Random House and its largest television group, and from
first year, with a sold circulation of production business. British publishers become part of this moment on, Bertelsmann is
730,000 copies. Bertelsmann. active in the production business
Sonopress opens a first fulfillment of one of the world’s most creative
center in Birmingham. TV markets, creating exceptional
formats originated in Britain such as
“Britain’s Got Talent,” “Pop Idol,” and
“The X Factor.”

BERTELSMANN IN BRITAIN • CHRONICLE
Millions of people
throughout the world
read the books – and
saw the film version –
of the “Fifty Shades”
trilogy by E L James.
BMG also represented

songs of superstar
David Bowie, who died
in early 2016.
Arvato employees serving

members of the public. The Arvato
headquarters in Slough,
west of London.
→
2005 2006 2008 2010 2012
The Council of East Riding Prinovis celebrates the Arvato takes over all The new BMG, founded in Following Chesterfield Borough
(Yorkshire) entrusts its opening of Europe’s most distribution activities for the 2008, goes on a shopping spree Council, Slough Borough
municipal services to state-of-the-art gravure record label Universal Music in what is arguably the world’s Council also commissions
Arvato in a public-private printing plant in Liverpool. UK, becoming the biggest most innovative music market. Arvato to handle various
partnership. Three of the world‘s largest logistics and fulfillment In July, BMG takes over the municipal services such as the
rotary presses are housed service provider in the renowned independent music collection of local taxes and
at the 60,000 square meter entertainment sector. publisher Stage Three Music, the payment of wages, salaries
(nearly 650,000 square and in November, Chrysalis, an and pensions. The following
feet) site. icon among music publishers, year, the Derbyshire Dales
with artists like Billy Idol, David District Council follows suit.
Bowie and Jethro Tull. BMG UK
Random House publishes the
is based in Paddington, London.
“Fifty Shades” trilogy by the
previously unknown British
author E L James – and
turns her novels into three of
the bestselling books of the
century, on both sides of the
Atlantic.

Entrance to the office
building of Penguin
Random House in London.
“The Girl on the Train” by British

author Paula Hawkins was
published by Penguin Random
House and became a huge
success in the most important
book markets of the world.
The Prinovis
gravure printing
shop in Liverpool.
2013 2014 2015 2016

On July 1, the world‘s largest trade book publisher is StyleHaul, RTL Group’s It is her first book – and At the beginning of the year, Prinovis
created: Penguin Random House. Its heart beats in U.S. multichannel network, becomes the bestselling Liverpool becomes part of the new
New York, and on the banks of the Thames. Penguin, goes to Britain and opens book of the year: “The Girl on Bertelsmann Printing Group.
after all, is part of Britain’s publishing and cultural a branch in London. The Train” by Paula Hawkins.
Relias Learning, the leading
heritage. The publishers of the two groups unite to Penguin Random House
U.S. provider of online learning in
form Penguin Random House UK, an unparalleled turns the British writer’s
healthcare, ”crosses the pond“ and
publishing group currently with 50 imprints. work into the bestselling
launches Relias UK, the Bertelsmann
adult fiction debut of the
Arvato pools large parts of its CRM business at Education Group’s first business in
past 10 years.
the new headquarters in Slough, west of London. Europe.
Its customers include BMW, Renault, Zara and the
Ministry of Transport. Following the acquisition
of Gothia, its sister business Arvato Financial
Solutions also grows in the UK. In the following year,
Arvato takes over the medical technology company
Stok, a specialist in the logistical supply of hospitals.

BERTELSMANN IN BRITAIN • GUEST ARTICLE
Global Britain
or Little Britain?
Baroness Gail Rebuck on Bertelsmann,
Britain and Brexit
Whether as a publisher, a creative, an entre- in January 2017 the British Prime Minister
preneur or a member of the House of Lords – Theresa May finally set out her plans for
what Gail Rebuck says carries weight in Britain. a full “clean,” hard Brexit for the UK but
In 1982 she cofounded a publishing house. In couched in the rhetoric of wanting us to
1998 she took the helm of the Random House be partners, allies and friends of our Euro-
Group UK. In the summer of 2014, Baroness pean neighbours.
Gail Rebuck was appointed to the House of The impact of Brexit on the creative
Lords – where at the beginning of this year, industries was subsequently debated in
she gave a speech about the implications of the House of Lords. In anticipation of our
Brexit for Britain’s creative industry. In her departure from the EU, Thomas Rabe also
guest article for INSIDE, she writes about this, convened a special Brexit Country Coordi-
Bertelsmann, and Brexit. nation meeting in the UK on 14 December
2016, listening to all the CEOs’ concerns
O
and reaffirming Bertelsmann’s support for
n Monday 13 March 2017, as I this important market, the fourth largest
hand in this piece, Britain has in the Group, with excellent growth and
just passed the Brexit Bill, paving profits.
the way for the Government to The pound has weakened and is pre-
trigger Article 50 on the 29th March and dicted to fall further, aiding exports but
begin our withdrawal negotiations from causing counterbalancing issues for all
the European Union. companies. All the Bertelsmann divisions
The divorce proceedings have begun in the UK, in line with the rest of the crea-
with both sides claiming potential finan- tive industries, struggled to match oppor-
cial rebates, the EU number in excess of tunities to the challenges going forward,
Gail Rebuck, Board
£50 billion, and as there will be many despite the current UK economic perfor-
Member Penguin Random
twists and turns by the time this article is mance being strong and defying the pre-
House and member of the
published, I will confine myself to what dictions of those against leaving the EU.
British House of Lords
has happened to date and the implica- That said, warning signs on the economy
tions for our businesses in the UK. Back are beginning to emerge. →

BERTELSMANN IN BRITAIN • GUEST ARTICLE
We also heard from Nick Clegg, the former Europe, and the need for a “meaningful”
Deputy Prime Minister of the UK at the vote on the negotiated exit deal and, in
meeting – a committed European who particular, the ability of the Commons to
speaks five languages fluently and has a vote on action to be taken if there was no
Dutch mother and Spanish wife – and al- acceptable deal after two years.
though his message was equally challeng- These amendments were reversed in
ing, it was delivered with an eloquence, the Commons so the Lords, mindful of the
“I’m worried the

sense of history and intellectual intensity sovereignty of the Commons, allowed the
that lifted our spirits before the holidays. Bill to pass into law unamended. What will
Theresa May has ruled out Britain’s follow, apart from negotiations, will be the
membership in the EU’s single market
and the Customs Union and wants to seek
Great Repeal Bill, which will convert EU
requirements into British law where there
next generation
out new ambitious free trade agreements
and was one of the first leaders to have an
are concerns that amendments may creep
in without scrutiny, the announcement
won’t have
audience with President Trump to discuss
these issues. She will remove the UK from
that Scotland may seek to initiate another
independence referendum possibly as the same
the European Court of Justice and take
back control of UK borders with a new
early as spring 2019 and, of course, the
spectre of a UK election before the set opportunities
we‘ve had.”
immigration policy. In addition, the Prime 2020 date should Theresa May wish to
Minister said she would cease to contrib- consolidate her mandate – although this
ute large sums to the EU budget but simply has been denied by the government.
pay towards specific programmes if that Outside this big picture, the particular GAIL REBUCK
could be negotiated. challenge for the creative industries in the
UK is that they consist of over a quarter of
NO CHERRY-PICKING a million businesses and despite their £87
The instant European response was billion contribution a year to the economy,
scathing towards cherry-picking and growing twice as fast as other sectors, with
an assumption that an à la carte Europe one of the largest export quotas, they lack 2. THE REGULATORY FRAMEWORK
might be available to the UK, partially in the lobbying might of banking, financial – copyright protection, trademarks, terri-
response to Theresa May’s sting in the tail services, pharmaceuticals, construction toriality and the single digital market, in
that if the only offer on the table – at the and the car industries that have all been particular, anti-piracy. With no seat at the
end of the two-year negotiating period given specific reassurances on special table and no influence, the UK creative
post-Article 50 was unacceptable – the UK trade deals and access to global talent. industries worry about the direction of
would turn itself into a deregulated, low The Prime Minister focused on science future legislation. There was also concern
tax haven, a “Singapore” on the shores of and innovation in her speech but failed about any increases in taxation burden,
Europe – a vision that enrages many of the to mention STEAM, putting the Arts and an issue that Bertelsmann agreed to keep
48 percent who voted to remain in the EU Design alongside Science, Technology, under regular review through the Brexit
as this vision of the future was not on the Engineering and Math. negotiations.
ballot paper. Finally, the Prime Minister This position has subsequently been
noted that any agreement would be voted reviewed, thank goodness, with the crea- 3. TRADING RELATIONSHIPS AND
on by both Houses of Parliament and that tive industries cited as a sector worthy of COINVESTMENTS
there would ideally be a phased approach early review in the recent Industrial Strat- The fear of actual tariffs or “non-tariff”
to implementation through a “long lasting egy Green Paper, which will form the basis barriers – with extra paperwork, delays
transitional deal” to avoid a disruptive of the new UK post-Brexit. The first stage and costs. There was also concern about
“cliff edge” for business. The business of the review into the creative industries is future European creative collaborations.
community broadly welcomed the clarity to be led by Sir Peter Bazalgette, outgoing
of the speech. Chair of the Arts Council and Chair of ITV, 4. EU FUNDING AND ACCESS TO GRANTS,
Extensive debate followed the pub- as well as a recently published author. such as “Creative Europe,” where the UK
lication of the Article 50 Bill in both the Key concerns across the creative intakes out £3 billion more than we put in,
House of Commons and the House of dustries relate closely to the Bertelsmann the second largest recipient after Germany.
Lords where the debates, over several reported divisional issues:
days, included hearing from distinguished The other and final issue is the UK’S
historians, former Chancellors and front 1. ACCESS TO TALENT AND SKILLS HIGHER EDUCATION SECTOR, currently
benchers from all parties, EU Commis- We have been told EU nationals already going through a massive process of reform
sioners, senior civil servants and business working here will be able to stay (provid- and liberalisation, which in itself is prob-
leaders. There were two significant amend- ing there is reciprocity for UK nationals ably a good thing but current legislation
ments that were passed back to the Com- abroad) but there is no detail on post- risks diluting the excellence of our leading
mons – the agreement to give certainty to Brexit new intakes. A significant percent- institutions by taking away their intellec-
the three million EU nationals currently age of our workforce is from the EU, from tual and research autonomy. EU research
living and working in the UK, not as a quid 7 to 30 percent, depending on the industry grants may be impossible to access and EU
pro quo for the British nationals living in so this is an issue of huge importance. students too may find their fees doubling,

The British Parliament meets in the “Houses of Parliament,” which consist of the House of Commons
and the House of Lords.
thus forcing them to make other choices Modern European Mind were more stim-
and depriving UK universities of their ulating than any of the mind-expanding
highest achievers and a tremendous re- drugs prevalent in the early 1970s. Reading
source to the workforce. his friend Lukács’s literary criticism on
Another talking point for our creative the power of writers, through their imag
industries is the sense of the UK not be- ination, to grasp the more vital forces at
coming Global Britain but Little Britain, a work in society, to penetrate the surface of
country in which our universities, writers, life and intuit the future led to my career in
musicians, actors, producers, directors publishing and my passion for books, which
and designers will no longer draw from has been more of a vocation than a job.
the rich and diversified European cultural
heritage, which is where innovation and WANTED: VISION
great new ideas are born. I hope I am wrong but I worry that the
One of the first to act on the Brexit next generation will not have those same
vote was German national Martin Roth, a opportunities to experience a blend of
former Director of the Dresden State Art European influences and how this may,
Collection, who resigned as Director of over time, affect the rich intellectual life
the Victoria and Albert Museum, having and unrivalled record of innovation we
regenerated one of our most prestigious currently enjoy.
institutions to Museum of the Year. He is That said, from a professional stand-
returning to Stuttgart to lead the Institute point, the Industrial Strategy Bill does give
for International Relations to focus on the each creative industry the opportunity
new nationalism emerging across Europe. to put its Brexit concerns forward, but I
For me, personally, I fear the rise of would counsel that these should be bal-
populism not only in the UK, but also in the anced by a strong and visionary narrative
U.S. and across Europe and the trashing of on opportunities for investment, growth
the values I have always tried to live by. and development. The UK Government
I was the first in my family to go to is searching for a vision from each of us,
university, my grandparents having fled and we should rise to that challenge as
persecution in Latvia. At the University passionate advocates for our cultural busi-
of Sussex, after a French education at the nesses and begin to imagine and articulate
Lycée Français in London, I read Intellec- a roadmap for British creativity, innova-
tual History. I discovered that Hungarian tion and growth. Our future path is set,
Professor István Mészáros’s lectures on the and we now have to make it work.

In the background
are St. Paul’s and
the financial center
of London; ahead is
the future of DK and
Bertelsmann in the
United Kingdom: Ian
Hudson on the balcony
of 80 Strand, where his
publishing firm DK is
based.

BERTELSMANN IN BRITAIN • DK
The British
Connection
Ian Hudson is the first and, so far, only member of
the Bertelsmann Supervisory Board. He heads the
Bertelsmann Management Representative Committee
(BMRC) and has served as CEO of the DK publishing
company since July 2016, so there were plenty of topics
to discuss in our interview with the “Bertelsmann Brit.”
E
mployee representatives on the
Supervisory Board? Unimaginable
at a British company. Managers
who get involved and provide
input, let alone mediation through a body
like the BMRC? Highly unusual in the
United Kingdom. But not for Ian Hudson.
On the contrary: he is the first and only
British member of the Bertelsmann Super-
visory Board, as a representative of the
Group’s Executives. He is also Chairman of
the BMRC, which, in the spirit of its
founder, Reinhard Mohn, he heads as a
sparring partner for the Executive Board.
He spoke with INSIDE about these two
roles, but also about Bertelsmann and the
UK – a relationship that he himself has
supported and helped shape for almost 20
years. For many years, Hudson bore both
domestic and international responsibili-
ties at Random House, then at Penguin
Random House. Since summer 2016, he
has been CEO of DK – a global publishing
brand headquartered in the UK. →

BERTELSMANN IN BRITAIN • DK
That DK thinks and acts globally perhaps

more so than any other trade publisher is
immediately apparent at its London head-
quarters – over 500 employees from all
over the world, with 22 different native
languages. 81 of them don’t have a British
passport. When Ian Hudson casually asked
before Christmas whether anyone was
planning to do anything special over the
holidays, the answers came immediately:
“I’m going to Paris.” “I’m celebrating in Lis-
bon.” “I’ll be in Venice.” “That’s when I real-
ised, once again, that these colleagues
weren’t planning a holiday getaway; they
were simply going home,” says Hudson,
highlighting how international DK is
today. “And we need people who don’t just
speak the languages of other markets, but
who understand these markets, and are at
home in them.” Global brand “Made in Britain”: Ian Hudson has been CEO of DK since the summer of 2016.
DOZENS OF LANGUAGES
“There’s so much
The publishing house, whose high-quality imum worldwide appeal – a quality that is
reference books are almost always de- largely owed to their nature as richly illus-
that joins the

signed in such a way that they work in trated books with topics that can translate
dozens of languages and countries, thrives internationally.
off this internationality. It is what makes
possible the smooth interlocking of DK’s
global system of logistical gears: of the
Bertelsmann CREATIVITY CONFERENCE
Internationality and creativity are a hall-
London headquarters with a creative team
in New Delhi, with the largest European
countries of mark not only of DK and the British (book)
market, but also of Bertelsmann. Ian Hud-
hub in Munich, and with North American
teams providing access for DK to that gi- Germany and the son sees this as one of the greatest com-
monalities between his company and his
gantic sales market.
Ian Hudson personally believes in United Kingdom.” home country: “It’s no coincidence that
Bertelsmann hosted its first Creativity
such internationality – but quite apart Conference in the heart of London in
from that, the livelihood of the British IAN HUDSON 2014,” says the publisher. “Bertelsmann
economy, depends on it: “Because the Brit- seeks the creativity of the British market
ish market alone was often not big stant, ongoing search for new solutions and promotes it among its 5,500 local em-
enough, we have had to learn over many to new challenges,” Hudson explains, “it ployees.” Hudson says this has resulted
years to operate in international markets would be unthinkable without the great in outstanding creative achievements, just
and cultures; to understand, accept and impetus we receive from other countries witness the success of Paula Hawkins, au-
benefit from their different qualities and and cultures. Creativity and innovation thor of “The Girl on the Train,” or of TV for-
values. We needed partners outside the have evolved and been enriched by the mats like “Pop Idol,” “Britain’s Got Talent”
UK, and we built international trading net- collective input of people from a variety of and “The X Factor.” Bertelsmann, says
works.” On the other hand, the country has backgrounds and experiences. This isn’t Hudson, can look back on a long and
always been open to migration from other just about creative Britons, but about crea- proud heritage in the UK. “The company
countries, says Hudson, who adds that this tivity in Britain.” has a significant presence in the UK with
will not change, even after Brexit. “There Specifically, Hudson’s publishing Penguin Random House, Fremantle Media,
seems to be a desire to control immigra- house DK is also about the creativity of in- BMG, Arvato and the Bertelsmann Printing
tion more intensively, but I can’t imagine ternational teams. “DK is a global brand,” Group, and we are very pleased that new
anybody is thinking of stopping it alto- says Hudson with pride. The core creative businesses such as Relias are coming
gether; the integrated society and econ- power of the DK teams is unique, he says, here, too.”
omy we have today was built on many because, “We develop books with global As Hudson sees it, over the years in
waves of immigration.” appeal and of global interest, completely which he has witnessed Bertelsmann’s de-
It would also undermine the UK as a under the direction of our own teams. We velopment in the UK, the Group’s portfolio
nucleus of creativity. Hudson sees a direct publish, distribute and license our books is the one element that has noticeably
link between internationality and creativ- in all major publishing markets ourselves, changed. Relatively new businesses such
ity. “While the development of our creativ- and we have the world rights to most ti- as BMG and Relias are expanding. The
ity and innovation was given a boost with tles.” Like no other publisher, DK knows company’s clear commitment to the Brit-
the Industrial Revolution and the con- how to help each of its books achieve max- ish market with its 65 million people and

its far-reaching impact has never wavered. in Brussels,” he says. “History, social re- partner, actively putting topics on the
And this is important in the UK: “We very sponsibility, cultural values and shared Group’s agenda. Diversity is probably the
much appreciate continuity, devolved re- traditions will ensure our strong ties hold best example of this. A lot has been hap-
sponsibilities, stable shareholder struc- us together.” pening on this front in the past few years.
tures and long-term investors,” says Hudson is determined to maintain this With Thomas Rabe and the Executive
Hudson. He freely admits: “Especially as attitude not only in leading DK into the Board’s tremendous support, Bertelsmann
we aren’t really used to this form of private future, but also in fulfilling his two [other] is now more committed to diversity than
ownership in the UK.” The kind of long- roles at Bertelsmann. “With members hail- ever before.”
term, committed and stable investments ing from across Europe, Asia and America, Hudson concludes that he is proud
that Bertelsmann has made in the UK are the BMRC is already one of Bertelsmann’s to be able to represent Bertelsmann in
exceptional, he says. most international bodies, and represents the UK, and the United Kingdom at
This is also what gives Hudson hope truly global interests,” enthuses Hudson. Bertelsmann – also or perhaps precisely
for the time after Brexit. Personally, as a “We have embraced our role as the Execu- because a body like the BMRC would be so
committed European, he deeply regrets tive Board’s sounding board and sparring rare in his home country.
the exit, but feels it should now be dealt
with objectively, and its consequences
assessed accordingly: “Relations between
From Idea to Book

Bertelsmann and the British, for example,
are much older than our membership in
the EU. They were stable before Britain
M
joined, and they will remain so after it
leaves.” This is in everyone’s interests, ore than 400 books a year are And while many readers prefer DK to the
the publisher asserts: “On the one hand, published by DK. Half of them Internet as a source of information, it still
Britain will definitely need continued are new releases, covering a has to keep up with the quality of visuals
well-functioning ties to Europe after sheer inexhaustible variety of available online: “Consumers of informa-
Brexit – and Bertelsmann has everything topics: from looks inside the human body tion who are accustomed to exceptional
it takes to be such a connection. On the or outside into space, and encyclopedias, image quality won’t settle for less in a
other hand, Brexit by no means has only family reference, lifestyle, travel guides book,” says the publisher, explaining why
disadvantages, neither for Bertelsmann and beautiful illustrated children’s books, the pictures on a double-page spread in
nor for its British subsidiaries. Hudson to strategy gaming guides and licensed a DK book published in 2017 can really
believes that despite the clear national products from Lego or Lucasfilm Ltd. A compete with those on a screen – and why
economic and social downsides there select number of DK employees work on the bite-size text that is linked to atten-
may be other areas where we will realise the latter in closed-off “secret rooms” pro- tion-grabbing images is more important
that there are two sides to Brexit for tected by locks and codes, so that not even with today’s younger readers.
Bertelsmann. hint of the plot of a new “Star Wars” movie Even after the design and editorial
can leak out to the public before its movie teams, in the UK, Germany, North America
SHARED TRADITIONS theatre premiere. and India where books are created, have
In his opinion, one of the negatives – at But who comes up with the ideas for finished their work on a DK title, the pub-
least at this moment – is the uncertainty so many new books? “Our sources for new lishers process remains in-house. Whether
caused by Brexit. “About half of our 81 books are as manifold as the DK publish- licensing, marketing, translating or dis-
non-British employees come from EU ing programme,” says Global Publisher, tributing – DK does not let a book out of
countries. As they still don’t have a com- Alex Allan. Sometimes it’s a DK author, its hands until it reaches the supply chain
mitment from the British government sometimes a scientist or expert, then again en route to the bookstore; and it does this
that they will be able to stay in the country, it may one of the publishers or a team worldwide.
they are naturally a bit uncomfortable,” member, she says. The path from idea to
says Hudson. For these colleagues, book here differs fundamentally from its
Bertelsmann’s early and unconditional development at a traditional publisher,
commitment to the UK, for example, has where the author is at the heart of the
been especially important. “It reassures process as a book’s creative nucleus. A
people – and we also expect that Brexit DK book is the creation of an entire team:
won’t have any repercussions for EU citi- photographers, designers, copywriters,
zens already living here in the UK.” Hud- scientists, experts, editors, translators – all
son does not currently foresee an developing a new book hand in hand, page
increased tendency to migrate back to con- by page.
tinental Europe in the media sector, but “This generally takes six to 12 months,
new European colleagues do occasionally sometimes longer,” says Allan, “because
have reservations about going to England quality plays an eminently important
now, he says. Hudson reassures his team, role for DK books.” Sources and facts are
“The two Bertelsmann countries of Ger- checked repeatedly for accuracy so that
many and the UK, and our people, are “every book lives up to the trust that read-
linked by so much more than a parliament ers have in the DK brand.” “Star Wars” tie-in book from DK.

BERTELSMANN IN THE UK • BESTSELLERS
Bertelsmann Bestsellers in the UK

Highlights from the Bertelsmann corporate divisions in the UK
→Arvato
Award-winning Partners
Renault, the French automobile manufacturer, and Arvato have been
collaborating in the UK since 2007. At the 2015 “European Contact Centre
and Customer Service Awards,” they were honored for their excellent
customer service and retention in the “Outsourcing Partnership of the
→DK Year” category.
Perfect Cooking
A cookbook was at the top of the DK annual bestseller list 2016 in the UK:
“Mary Berry Cooks the Perfect.” It includes 100 brand-new recipes from one
of the most famous and popular British cookbook and baking book authors.
Mary Berry also hosts a TV baking show.
Author Roald Dahl (bottom left), who

died in 1990, penned some of the
world’s most popular stories, including
“Charlie and the Chocolate Factory,”
“The BFG” and “James and the Giant
Peach.” Penguin Random House has
been publishing the works of Roald
Dahl since 1979.
Jamie Oliver (top) is the most
successful cookbook author in the UK
and has published a total of 20 books
with Penguin Random House since
2007. His television and book career
started in 1999 with the TV cooking
→Penguin Random House series “The Naked Chef.”
International Bestsellers Since her debut novel “White Teeth”

(2000), Penguin Random House UK
Penguin Random House UK has been publishing the has been responsible for the books
books by Dan Brown (center left) since 2004, including of Zadie Smith (center right). “White
bestsellers such as “The Da Vinci Code,” “The Lost Teeth” received numerous awards and
Symbol” and, most recently, “Inferno.” Three of his works was followed by other novels including
have been made into movies, with Tom Hanks in the “The Autograph Man,” “NW” and “The
lead role. Embassy of Cambodia.”
The children’s book author Jacqueline Wilson (center) has published more Penguin Random House UK has published over 100 novels by crime author
than 90 titles with Penguin Random House since 1969. She is the creator of James Patterson (bottom right) since 2008. His “Alex Cross” and “Women’s
famous characters such as Tracy Beaker and Hetty Feather and has received Murder Club” novels have made Patterson one of the most successful bestselling
numerous awards. authors of all time.

→Fremantle Media
Ratings Champions
“Britain’s Got Talent,” produced by the Fremantle Media production company
Thames, is one of the most successful talent shows in UK television history –
and comedian, actor, presenter and children’s book author David Walliams
(above left) has been on the jury panel of this show since 2012.
Singer-songwriter, screenplay author and award-winning actress – Michaela
Coel (above center) is all of the above. In 2016 she received a prestigious BAFTA
Award for her performance in the sitcom “Chewing Gum” produced by Retort.
Michael Portillo (above right) used to be a famous politician; today, he is a
well-known TV presenter. Portillo is the presenter of the shows “Great British
Railway Journeys,” “Great Continental Railway Journeys” and “Great American
Railroad Journeys,” all of which are produced by Boundless and renowned for
their high ratings.
→Prinovis
A Circulation of Millions
Prinovis has been printing the weekly magazines for the publishers
of the British daily newspapers “Daily Mail” and “The Daily Telegraph”
since 2016 – a total of six million copies per week. The “Weekend”
supplement of the “Daily Mail” produced in Liverpool alone is published
with a weekly print run of about 2.5 million copies.
→BMG
Music for Generations
Since the 1980s Rick Astley (“Never Gonna Give You Up,” picture to the far left) has sold
more than 40 million albums worldwide. In 2016 he was able to celebrate his first #1
album (“50”) on the British charts in almost 30 years thanks to BMG, which released the
album and also manages the song rights.
23-year-old George Ezra (large picture) not only has a strikingly “bluesy” voice and
performs with just a guitar during his acclaimed concerts, but he also cowrites his songs.
In 2014/2015 he had his international breakthrough with the hit song “Budapest” and the
album “Wanted on Voyage.” BMG represents his rights as a songwriter worldwide.
The Rolling Stones (bottom): Mick Jagger, Keith Richards and the band are still working.
BMG manages most of the tracks on the album “Blue & Lonesome” released at the end of
2016. Naturally, the album shot to the top of the charts in the UK, Germany and Australia
right away; in the U.S. and Canada it debuted on the charts in the Top 5.

BERTELSMANN IN BRITAIN • RTL GROUP
A Very British Idea

The British production company Boundless specializes in factual
entertainment formats. Managing Director Hannah Wyatt and
the Boundless team of 20 employees produce such renowned
and popular formats as “The Apprentice,” “Grand Designs,”
“Escape to the Country” and “Great British Railway Journeys.”
F
actual entertainment refers to the show about escaping ubiquitous digital
art of observing real people in surveillance, or “Four Rooms,” which
normal – or unusual – situations Boundless has produced, also for Channel
and creating an entertaining TV 4, since 2011, in which people try to sell
format out of it. And it has been one of valuable items or collectibles to one of
the major TV trends of recent years. From four professional traders and get the best
celebrity chefs helping ailing restaurants price, as typical examples. “Landlords” is a
get back on their feet, to flea market spe- format that Boundless is currently produc-
cialists rummaging through lofts and ga- ing. Landlords move into one of their
rages across the country in search of properties to experience life from the per-
profitable finds, to debtors trying to bring spective of their tenants – with the cam-
families out of financial misery, or com- eras rolling, of course.
pany founders visiting their own com-
pany incognito, from the perspective of PROUD OF “THE APPRENTICE”
an ordinary employee – this kind of true- Hannah Wyatt thinks a key show for
to-life entertainment captivates millions Boundless is “The Apprentice,” a classic of
of TV viewers around the world. The Brit- the genre and perennial favorite, in which
ish production company Boundless, part aspiring managers compete with each
of Fremantle Media UK, is an expert in other in the real business world. The win-
the production of factual entertainment ner receives a cash prize and, more impor-
formats. tantly, a promising job in the real world.
“Factual entertainment is a very British “‘The Apprentice’ is based on the real rules
idea,” says Hannah Wyatt, who has led of the business world, but is incredibly
Boundless as Managing Director since Au- entertaining,” says Wyatt. The format is
gust 2015. “A high entertainment value closely associated with Boundless. “This
combined with a real-life story has a par- helps us because broadcasters know we’re
ticularly strong appeal for British audi- able to make these big shows, and we are
ences.” She cites “Hunted” on Channel 4, a enormously proud of it.” →

Hannah Wyatt,
Managing Director of TV
production company Boundless,
a part of Fremantle Media UK,
in her London home.

BERTELSMANN IN BRITAIN • RTL GROUP
“The Apprentice”
A Boundless classic in which the candidates compete for
the favor of the billionaire Lord Alan Sugar and £250,000
of investment capital.
In many factual entertainment formats, ‘Escape to the Country,’ ‘Great British Rail- chicken joint. “Hotel of Mum and Dad”
the “stars” are ordinary people, as for ex- way Journeys’ and ‘Grand Designs,’” says for BBC Three follows young couples who
ample in “Four Rooms.” In others, the for- Wyatt. “For instance, they generate excel- are leaving home and moving in together
mat is watched not only for the idea, but lent DVD sales and are also sought after in- for the first time. And “Young and Married”
also for a well-known personality who ternationally, meaning they create steady for MTV presents the many different prob-
plays a major role. Kevin McCloud, who additional revenues for us.” lems and situations faced by newlyweds.
has been presenting the architecture series Last year, says Wyatt, Boundless
“Grand Designs” since the start of 1999, is a worked on up to 13 productions simulta- THINK ABOUT THE WORLD
well-known designer. Former Tory MP and neously. Her team comprises only 20 full- Wyatt says her history degree from Sussex
minister Michael Portillo started a second time employees, which is normal in an University has been useful for identifying
career after leaving politics by joining industry that works with freelancers at all topics with high entertainment potential.
Boundless as a presenter, among other levels. Wyatt herself worked as a freelancer “Studying anything that makes you think
things, of the series “Great British Railway for many years – “always in the area of about the world, about the past, present,
Journeys” and “Great Continental Railway factual, popular factual, factual entertain- future, is good preparation for the TV
Journeys.” The two Irish comedians Ed ment, whatever you call it.” And almost business,” says Wyatt, whose father also
Byrne and Dara Ó Briain, who drive the en- since the birth of the genre, in fact: Wyatt worked in TV. “After all, in essence, TV is
tire length of the Pan-American Highway worked on the first British version of the all about people, their stories, and telling
for BBC 2 in “Dara and Ed’s Great Big Ad- reality-TV show “Big Brother,” the germ cell them. From that point on, the TV business
venture,” are familiar faces in Britain – as of today’s factual entertainment genre. is a straightforward industry, as well as an
is Lord Alan Sugar, a businessman, politi- This was followed by successful formats exciting one.”
cal adviser, and the main protagonist of such as “Celebrity Big Brother” (Channel Hannah Wyatt describes her leader-
the Boundless classic “The Apprentice.” 4), “School Musical” (Sky 1), “Up All Night: ship style as open and team-oriented.
Minicabs,” “Saturday Kitchen,” “Pet Res- “We’re always talking things through with
STRONG BRANDS cue” and “Great Estates.” each other, working in such a small team
TV viewers in Britain – and beyond – love “I always ask myself: What are the would be unthinkable otherwise.” She sees
factual entertainment formats. They give topics that affect a lot of people? Topics one of her most important tasks as creat-
TV channels stable ratings at manageable that move people? And how can these top- ing the necessary conditions for everyone
production costs, especially during the ics be used as the basis for an entertaining to perform their work as well as possible.
day. But for Hannah Wyatt, the genre show?” Wyatt explains. Good examples This attitude is based not least on her own
also has other advantages: “We have long- of this are “The Fried Chicken Shop” for experiences as a freelancer, “where you
established formats, which are themselves Channel 4, which observes life in front have to integrate into a new company, a
strong brands, such as ‘The Apprentice,’ of and behind the counter of a fast-food new team, very quickly and get to know a

Fremantle Media UK
→Employees: 136
→Fremantle Media UK is one of the United
Kingdom’s biggest TV production companies
→Six production firms: Boundless, Euston Films,
Newman Street, Retort, Talkback, and Thames, plus the
Shotglass Media digital studio
→Hours of TV programming produced in 2016: 360
→TV formats: “The X Factor,” “Britain’s Got Talent,”
“Celebrity Juice,” “Take Me Out,” “Through the Keyhole,”
“The Apprentice,” “Chewing Gum,” “Four Rooms,”
“Grand Designs,” “Birds of a Feather” …
“Escape to the Country”

Another Boundless hit since 2002, this show
follows people who want to escape the big city
and move to the country.
“It’s about only as good as the last format you pro-

duced.” She feels that Boundless is doing
people and their

very well even in this difficult environ-
ment – not least thanks to the aforemen-
stories.”
tioned perennials such as “The Apprentice,”
“Grand Designs,” and “Escape to the Coun-
try.” She says that these shows have only
HANNAH WYATT been so successful for so long because the
team does not take this success as a given
or sure thing. “Today, a lot of formats are
commissioned only for a single season, a
single year,” says Wyatt. “So, we have to
keep convincing the broadcasters of the
quality of our shows.”
load of different management styles,” says
Wyatt. “This is how I know that a company A SIMPLE IDEA
culture needs be put into action from the What exactly does it take to create a suc-
top down.” She says she has always done cessful factual entertainment format?
her best work when she had the support “Of course, you need a good, simple idea
of the company’s management, when she that is immediately clear to viewers,” says
was able to work in an open, encouraging Wyatt. “An idea around which you can
atmosphere, and when she felt her work layer content and entertainment.” Beyond
was appreciated. “Running Boundless this, she says a good team is critical for
means giving the staff exactly these things success. “You’re only as good as the people
so that they can fully live up to their you work with,” says the Boundless MD.
potential.” “That was one of the reasons why I was so
“Another valuable experience from my happy to join Boundless: the truly talented
time as a freelancer,” adds Wyatt, “is that and creative people who work here and
you never take anything for granted.” She make fantastic programs.” This is also true
says that this is extremely important in the for Fremantle Media UK as a whole, she
current TV market. “The market is highly notes: “We make the best programs –
competitive. It changes rapidly and you’re which is why the TV channels trust us.”

BERTELSMANN IN BRITAIN • PENGUIN RANDOM HOUSE
The Best Publishers

Are Gamblers
For nearly four years, Tom Weldon has led Penguin Random
House UK, the largest publishing group in the country, with
more than 50 imprints and 2,000 employees.
W
hen asked how many people twice a month, Weldon visits the horse
he speaks to on a given day, races, where he likes to bet on win and
Tom Weldon – who is not place. Weldon says his enthusiasm for
generally at a loss for an- betting on horses, and sometimes also on
swers – just smiles and shrugs. He can’t dogs, has a lot to do with his work as a
say; it’s just so many. The publisher, who publisher. But more about that later.
has been CEO of the British publishing
group Penguin Random House UK for LONG ROAD
nearly four years now, is a great advocate The local company has come a long way
of personal conversation at all levels. It is since the completion of the merger be-
a key element of his leadership style. He tween the British publishing groups Pen-
holds some 50 employee briefings a year, guin and Random House in July 2013,
each with a maximum of 60 participants, which Tom Weldon helped orchestrate in
as well as numerous breakfast or lunch the UK. No wonder, given that the “most
events with colleagues. Not to mention boring merger in history,” as Penguin
the annual meeting of all the publishing Random House CEO Markus Dohle likes to
group’s 1,000 London employees, where call it, went smoothly in Britain as well. It
the publishers present their upcoming turned Penguin Random House UK into
highlights. the country’s largest trade publishing
So, the publisher is on the road a lot, group, with nine creatively independent
especially as he also prefers to visit his ex- publishing divisions, more than 50 im-
ecutives at their offices, rather than invite prints, and some 2,000 employees. “We
them to his. “I go to see people where they are truly ‘One Penguin Random House’
are, not vice versa,” says Weldon. No won- today – and we managed to do it without
der then that he doesn’t have an imposing our publishers being distracted from their
office with prestigious furniture and an actual job of discovering and publishing
anteroom. Instead, he has inconspicuous fantastic books,” says Weldon. This is also business starts and ends with them,”
space in the publishing group’s buildings borne out by the publishing group’s enor- stresses Weldon. “It’s the books, stupid!”
on Vauxhall Bridge Road and the presti mous number of bestsellers. Last year he says, modifying the famous phrase
gious Strand, both not far from the River alone, it was behind a remarkable 45 per- “It’s the economy, stupid!” which helped
Thames. He spends two days a week at cent of all books on the “Sunday Times” Bill Clinton win the 1992 U.S. presidential
each of them, and the fifth day at the pub- bestseller list, the most important in the election. In the course of his long and
lishing house’s third site in suburban country. And almost half of the country’s successful career as a publisher, Weldon
Ealing, the headquarters of Transworld, #1 titles were published by Penguin himself has repeatedly demonstrated his
Bertelsmann’s oldest publisher in Britain, Random House UK. This in turn led to flair for books, mainly for nonfiction.
or at one of the three distribution centers record-level profits in 2016. After earning a history degree at the Uni-
in Colchester, Grantham and Rugby. Even At the heart of Tom Weldon’s thinking versity of Oxford, he successfully applied
his favorite hobby reflects the pace Tom and action are books and authors. “With- for a trainee program at the renowned
Weldon likes to set in his work. At least out our authors, we would be nothing. Our publisher Macmillan in 1985. What par-

The Regency Cafe,
in the immediate
vicinity of his office
on Vauxhall Bridge
Road, is one of the
favorite places of
Tom Weldon, the CEO
of Penguin Random
House UK.
“It’s the books,

ticularly appealed to him about the Weldon says he “loved publishing from day
book-publishing industry was the connec- one,” so he stuck with it for the next 30
stupid!”
tion between creativity and business, says years, holding several positions at various
Weldon. The Macmillan program slots nonfiction publishers. In 2001, he was pro-
were extremely sought after, and through moted from Publishing Director of the Mi-
“pure luck” the CEO of the publishing TOM WELDON chael Joseph imprint to Managing Director
house at the time shared Weldon’s enthu- of the Penguin General Division, making
siasm for horse racing. For Weldon this is him responsible for the first time for more
no coincidence: “The best publishers are than one publishing house. He then worked
gamblers,” he believes. “As a publisher, you as Deputy CEO and CEO of Penguin UK until
have to like risks and be willing to take he became the CEO of Penguin Random
them. You can’t hesitate too long before House UK in 2013.
making a decision.” →

Vauxhall Bridge Road 20 in the Pimlico district of London, one of the three locations of Penguin Random House UK.
Despite his enthusiasm for discovering Even if he does not select the publishing
new books and authors, Weldon says it group’s books himself any more, you
wasn’t difficult to cut back on this part of can tell Tom Weldon has a love of books.
the job in order to lead an entire publish- “Whenever we acquire new books, I really
ing group. Of course, there are publishing want to read them. Regardless of whether
decisions that he must approve, since they are from our most important authors
some titles represent significant financial or from a young author whose book I’m
investments with corresponding risks. excited about,” says Weldon. He read “Into
“But I rely completely on the instincts of the Water,” the new Paula Hawkins thriller,
Penguin Random House UK
our publishers and editors,” says Weldon. which will be published this May. “It was →Employees: 2,000
“My job is not to question them; my job is simply a great feeling to be involved in →Nine editorially independent publishing units
comprising more than 50 imprints
to trust them.” He says it is easier for him, this kind of project at such an early stage,”
→Biggest bestseller in 2016: “The Girl on the Train”
since he himself worked as a publisher for he says. And the publisher loves dealing by Paula Hawkins
a long time and can very well put himself with authors. “I see myself as an ambassa- →Number-one bestsellers in 2016: around 50 per-
into the role and knows exactly what he dor of our publishing houses, and when- cent of all “Sunday Times“ bestsellers
must pay attention to. Accordingly, he sees ever an author visits our publishers, I try →Popular novelists: James Patterson, Dan Brown,
it as one of his most important tasks as to be there to talk to them,” says Weldon. Kate Atkinson, Lee Child, JoJo Moyes, E L James,
Robert Harris, Marian Keyes, Ian McEwan, Zadie Smith,
CEO to win and retain the best publishers However – and this is probably a good tip – Ali Smith, Sebastian Faulks, Jo Nesbø, Arundhati Roy,
and editors for Penguin Random House you should never meet an author without John le Carré, Rick Riordan
UK. “It’s fun to discover talented people – having read their book beforehand, he →Top nonfiction authors: Jamie Oliver, Nigella
publishers, editors, sales people, market- says, because “he or she will always know.” Lawson, Caitlin Moran, Bill Bryson, Yotam Ottolenghi,
Rick Stein, Stephen Hawking, Simon Schama, Mary
ing people – and help them advance their One of the writers Weldon stays in par- Berry, Yuval Harari, Melissa and Jasmine Hemsley,
careers.” ticularly close contact with is also his Phil Collins

BERTELSMANN IN BRITAIN • PENGUIN RANDOM HOUSE
most important publishing discovery: the

British celebrity chef Jamie Oliver. He met
Oliver for the first time at the end of 1997,
when the then 22-year-old was trying to
find a publisher for his first cookbook. “40
seconds after I entered the room, I knew
that this guy was an absolute star, and that
he would be great,” the publisher recalls,
adding that Oliver was so passionate about
food, so full of charisma, that the chef im-
mediately convinced him, as did the first
handwritten collection of recipes that
Jamie Oliver brought with him, and had
been working on since he was 14. The rest
is (cook) book history. “Jamie Oliver never
fails to inspire me,” says Weldon. “He is
“The Girl on the Train” by Paula
fearless; he believes anything is possible,
Hawkins and “The BFG” by Roald Dahl,
and he believes the good things in life
a debut novel and a classic, were among
should be for everyone.”
the most successful books in the United
KNOWING READERS Kingdom in 2016.
Like any other publisher, Weldon has occa-

sionally “backed the wrong horse,” too, as
they say at the track. In his case, it was a
nonfiction book by the British journalist
Rageh Omaar, or more precisely, his expe- books from the Lesbian, Gay, Bisexual and
riences as a reporter in Baghdad during the Transgender (LGBT) community.
second Gulf War. “It was a great book by a
great guy, for which we paid a great deal of INCLUSIVE COMPANY
money – and it was a flop,” the publisher
recalls. One of the most wonderful and
“I rely completely Penguin Random House UK embraces
these initiatives because Weldon and his
also greatest challenges of publishing is to
cater to readers’ tastes. “Unfortunately, it
on the instincts team believe that it is the only way to en-
sure success into the future. “We need to
doesn’t always work out, but a publisher
must never lose the desire to place bets,” of our publishers make sure that we reflect the society in
which we publish our books,” says Wel-
says Weldon. His colleagues make sure
Weldon will never forget the most expen- and editors.” don. Being an inclusive publishing house
isn’t just about hiring employees with di-
sive failure of his career. Every now and verse educational and ethnic backgrounds,
then, he says, he goes to the greyhound TOM WELDON but rather about different ways of thinking
races with some of the publishing group’s and ways of life. “An inclusive company
Finance department team. And some- appreciates the values of many different
times, when his dog doesn’t win, his col- people and promotes a corporate culture
leagues turn to him and chant “Rageh, in which all voices are heard and re-
Rageh, Rageh.” spected,” says the publisher.
Tom Weldon can tell many a firsthand The publishing group, for example, has In his role as CEO, Tom Weldon cham-
tale about authors and their books. For ex- abolished the need for all its jobs to have a pions diversity on a daily basis. The pub-
ample, that time when he was a young edi- degree. More than 400 employees have lisher makes no secret of the fact that he
tor in the 1990s, and he lost the American already completed a training course to lives with his gay partner. “That’s probably
Hollywood legend Tony Curtis just before raise awareness of unconscious bias. The part of why diversity is so important to
an important BBC interview for his book, company hosts “JobHack” publishing me,” he says. And of course, when the
only to find him again in a neighboring workshops across the UK that target young avowed big-city lover leaves his home on
pub where the star was paying for one people who might otherwise never con- Chesterton Road, Notting Hill, he encoun-
round after another. He managed to get sider a career in publishing. Its entry-level ters the multicultural diversity of a world
Curtis back to the studio again just in time recruiting programme called “The city right on his doorstep. Nearby Porto-
to do the interview. Scheme” doesn’t ask applicants for their bello Road is a well-known melting pot of
And when Weldon talks about how he formal qualifications; instead, applica- cultures where, for example, Caribbean
likes to advance employees’ careers, he tions and interviews focus more on the and Moroccan influences blend together.
also means promoting diversity at the key creative skills they would need in the This is exactly what Tom Weldon loves so
company. In fact, Penguin Random House workaday routine. And with the annual much about his hometown. This, and also,
UK can justifiably call itself a pacemaker “Penguin Pride” summer campaign, the of course, the many horse-racing tracks
in the British book industry in this respect. publishing group celebrates writers and spread around the British capital.

Music for the United Kingdom
and the world: Alexi Cory-Smith,
Alistair Norbury and Peter Stack
(back) in London maintain contact
with artists and songwriters.

BERTELSMANN IN BRITAIN • BMG
We Are Here
for the Artists
The UK is the second most important music market in the
world, after the U.S. Alexi Cory-Smith, Peter Stack and
Alistair Norbury talk about how active BMG is in Britain –
and how songwriters and musicians in other countries are
also served from the London office.
A
s the first fat beats begin to misty London skyline. A few smaller
boom and heads begin to nod in rooms, colorfully decorated and fur-
time, you notice what was miss- nished with comfortable sofas and – of
ing til now: music. Gradually, course – high-end hi-fi systems (as well as
the workstations in front of the screens fill soundproof glass doors), are available as
with people, the smell of coffee wafts havens for meetings with talent and busi-
through the office, a murmur of conversa- ness partners. Colored wall units, some
tion and the occasional “G’morning” is decorated with gold and platinum records
heard here and there – and then, finally, and CDs, create a refreshing ambience. Not
the bass notes, finally music. The unex- to mention the large “break-out” area, in
pected calm of this grey, cold and until one corner of which is a raised wooden
now apparently too-early morning has floor: a stage. The BMG staff are particu-
come to an end, BMG’s UK headquarters in larly proud of this. “This is where our art-
London has woken up. From here, the ists perform and show us what they can
company looks after songwriters and re- do,” says Alistair Norbury, Executive Vice
cording artists in the UK – and the rest of President, International Artists, in an in-
the world. terview with INSIDE. He sits in one of the
Even from the outside, the 14-story of- offices that are separated from the open-
fice building in the new Merchant Square plan office by a glass wall. His position
development near the famous Paddington puts him in charge, among other things, of
Station looks glamorous: Employees of the signing international artists and promot-
companies based here – including col- ing national artists worldwide. The Aus-
leagues from BMG – flock through the re- tralian singer Kylie Minogue, for example,
volving doors and the wide foyer with its recently visited the office to sign contracts
glass exterior walls. They travel up to the for her new first album with BMG.
eighth floor, which the Bertelsmann music
company rented two and a half years ago, SPECIAL PHILOSOPHY
and where some 160 employees work in One of the special things about this BMG
1,600 square meters of office space. The office is that the music that plays here in
interior architecture impressively contin- West London is highly successful far be-
ues what the exterior promised: large win- yond Britain, and this is the result of the
dows provide impressive views of the philosophy behind BMG’s found- →

BERTELSMANN IN BRITAIN • BMG
ing in Berlin in 2008. “We are here for

the artists – rather than the artists being
here for us, as it used to be in the past
and still is elsewhere,” emphasizes Alexi
Cory-Smith, President, Repertoire and
Marketing, who is responsible for BMG’s
British music operation. “We offer artists
and songwriters fair and attractive deals,
and with our lean administrative struc-
ture, which concentrates on the essentials
with around 600 employees around the
world, we operate efficiently and control
costs. This new business model has more
than paid off: We have come from a stand-
ing start to the fourth (and fastest-growing)
company in the UK music business, and
our artist and songwriter clients are
among our greatest advocates. Kylie
Minogue came to BMG because of our re-
cent success with Rick Astley, and Nickel-
back because of what we achieved with
Blink-182. This trend will continue into the
future,” says Cory-Smith confidently.
“We cover all the processes involved in
looking after our artists and bringing their Meeting point for business partners and
music to consumers – and we are doing artists: Two and a half years ago, BMG set up
so with steadily increasing success,” says
Cory-Smith. Of course, the basic principle
its headquarters on the eighth floor of the office
building at the new Merchant Square near the
“We invest a lot
is the same for BMG around the world –
for the Bertelsmann division has offices
famous Paddington Station in London.
of money in
in 12 countries. The UK market, however,
has an extraordinarily extensive wealth of British songwriters
creativity that BMG can draw on – which
makes it correspondingly important for and artists.”
the music markets of other countries, es-
pecially in the age of convenient and bor- ALEXI CORY-SMITH
derless streaming. “This is why we still
invest a lot of money in British songwrit-
ers and artists. This country has a alog company, Union Square Music, before products such as the CD or even the vinyl
history of exporting successful creative it was acquired by BMG in October 2014. record still offer interesting opportunities.
products, in fashion and the arts as well as In his work at BMG, he now has access to “Wherever possible we always involve the
music. After the U.S., the UK is the most hundreds of thousands of recordings from artists themselves in our reissue work; this
important export market for BMG, which such famous labels as Sanctuary Records, is very important to us. We talk to them,
makes it vastly important for other regions Mute Records, Strictly Rhythm and Skint/ ask them for their opinions and ideas.
in the world.” Loaded Records, with such immortal stars Nothing happens without their involve-
and bands as Nick Cave, Black Sabbath, ment,” says Stack, adding: “Many of our
RICH OPPORTUNITIES Motorhead and The Kinks. “The catalog clients find this engaging approach re-
This starts with the music catalog. Thanks business is becoming more and more im- freshingly unique.” Importantly, the rela-
to its long history and many top-class portant and international,” he says. tionships BMG has built after acquiring
music stars, the British music market of- A huge variety of recordings is mar- catalogs are increasingly leading to it sign-
fers particularly rich opportunities here. keted globally from the UK, many of them ing contracts with those artists to release
“Our catalog includes recordings from then adapted locally. Exclusive high-value new material. The first contact between
many of the most iconic artists of all time, box sets – recent examples include iconic BMG and Kylie Minogue, for instance,
covering many different genres and span- 1980s bands Erasure and Frankie Goes to began through the catalog department.
ning every decade from the 1950s to the Hollywood – deluxe albums, and other in- Likewise, BMG has gone on to release new
present, and the catalog is constantly novative formats are among the profitable material by Iron Maiden.
growing,” explains Peter Stack, Executive business ideas conceived by the catalog Alistair Norbury first met BMG CEO
Vice President, Global Catalog Recordings, and marketing experts in the UK. In the Hartwig Masuch in 2009. Norbury had
who runs BMG’s international catalog hub digital world, says Stack, there are many long been “on the other side” of the music
from London. He knows the market well, exciting opportunities to make BMG’s ex- business as a manager of high-profile stars
previously running his own specialist cat- tensive catalog available, whilst physical like Bryan Ferry and James and Texas. Over

dinner, he and Masuch negotiated a new countries, most recently in Brazil and Aus-
contract for Bryan Ferry with BMG – its tralia. China is also becoming increasingly
main points scribbled on the back of an important as a key market and is becom-
envelope. “At the time, I couldn’t imagine ing more and more interesting for artists
how uncomplicated and cooperative a from the United Kingdom. “Nevertheless,
partnership with a music company could we remain focused on our core compe-
be,” says Norbury. “But we just did the job tences and will continue to keep costs
properly right away, signed a recording under control to sustain success long-
and a publishing contract, and a little later term. We are the only company of this
presented ‘The Jazz Age,’ an album that was scale that combines and operates publish-
as unusual as it was successful – thanks to ing, recording and audiovisual in an inte-
special marketing strategies. That was the grated way and off the same platform
first big global star for BMG – and my first worldwide,” emphasizes Cory-Smith.
encounter with the company.”
The ever-closer cooperation and the BACKED BY BERTELSMANN
growing mutual trust finally resulted in an And with Bertelsmann behind it, BMG can
unusual step: Norbury joined the BMG offer even more than other music compa-
team himself in 2015, and since March nies: “At cross-divisional meetings, we’ve
2016, he has been responsible for the sign- gotten to know some interesting col-
ing and marketing of international talent leagues, including from Fremantle Media
worldwide – and for how local talent can and Penguin Random House, with whom
be marketed outside its domestic market. we now collaborate on various projects,”
“I’m very happy I took this step, because says Cory-Smith. “For example, Fremantle
this is the best place for me to make my Media is developing a TV series that uses
ideas about how artists, songwriters and tracks from the BMG catalog. And Penguin
music companies should treat each other Random House has published several
become a reality.” biographies of BMG artists,” says Cory-
Smith, adding that the divisions will also
LONG-TERM PLANNING be collaborating more intensively on the
“When we sign a contract with an artist joint development of junior executives.
we jointly develop a long-term marketing Jack Savoretti’s first album with BMG, “Written The benchmark for a successful music
plan, at that stage. We think about what in Scars,” only really took off 49 weeks after it was business is about more than good chart
products, what media and what countries brought out in 2016 – but then it was a big hit, positions, she says. “For me, success is
we can use to market them over the next especially in the United Kingdom. when we satisfy our artists and songwrit-
18 months. It’s a very considered, and by ers with the many services provided by
music-industry standards, long-term ap- This May, BMG UK will publish a new album by BMG. We meet our financial goals by
proach,” says Norbury. BMG’s distinctive the band Blondie titled “Pollinator.” For decades, helping artists and songwriters achieve
approach is reflected in the fact that 80 the band, founded in 1974 by Deborah Harry, has theirs.”
percent of its portfolio consists of works been under contract with the British music label
by established musicians and songwriters, Chrysalis Music, which was bought by BMG in 2010.
with around 20 percent comprising work
by newer talent, the catalog artists of to-
morrow. Whether pursuing new or estab-
lished artists, Norbury says BMG’s
approach is both collegial and interna-
tional. “I work closely with my many dedi-
cated colleagues at BMG’s many branches
around the world,” he says. This is an ap- BMG UK
proach that is new to many artists: BMG →Founded: 2008
thinks internationally from the outset, →Employees: 160
and doesn’t just focus on a local market. →Headquarters: London
“Many music companies have been →Services: Administration, marketing and
downsizing in recent years,” says Alexi exploitation of music publishing and recording rights
Cory-Smith. “On the contrary, we are grow- →Major labels: Infectious, Sanctuary Records, The
End Records, Trojan Records, RAM Records, Union
ing and continuing to hire.” A few years Square Music
ago, only a handful of BMG colleagues →Major artists and songwriters: Rick Astley,
worked in London. BMG’s growth is ex- Blink-182, Peter Doherty, George Ezra, Bryan Ferry,
pected to continue in the next few years, Hot Chip, Mick Jagger and Keith Richards, Jamiroquai,
Katie Melua, Jack Savoretti, Roger Waters, You Me
and not just in Britain – although the ef- At Six
fects of Brexit are not yet foreseeable. Step →Market share: Number four in the British market
by step, the company has opened up new (world’s second-biggest music market)

BERTELSMANN IN BRITAIN • ARVATO
Less Is More
Companies in the UK are making an effort to improve their customer services and make
them more efficient in order to gain a competitive edge. For external service providers,
these efforts create many opportunities. Arvato UK focuses on individual sectors with
growth potential and banks on innovative technologies. “In establishing the company
as an expert, close in-house cooperation is indispensable,” says Debra Maxwell, CEO,
CRM Solutions UK & Ireland.
T
he yellow wall with the silver UK in 2000, when the first customer ser- charter: “We need to express a very precise
rhombus immediately catches the vice center opened in Liverpool. Supply idea of what we do and how we do it – and
eye. As do the black-and-yellow chain management (logistics) services we need motivated employees, because
jackets of the men and women were added in 2005, and the portfolio ex- the competition here is tough,” she says.
sitting next to each other at the desks panded to include financial services with The United Kingdom is essentially the out-
beneath. Their eyes are focused on the the 2010 purchase of the debt collection sourcing center of Europe. Almost half of
computer screens as they talk into headset provider Credit Solutions and the acquisi- the European headquarters of large multi-
microphones and rapidly type into their tion of Gothia in 2013. nationals are located here, and around a
keyboards. This is where Renault’s cus- third of all European service centers.
tomer service for the UK and Irish market OUTSOURCING KINGDOM British companies have long out-
sits – in Arvatoʼs open-plan office in The Customer Relationship Management sourced a number of services, explains
Slough. Arvato UK has delivered customer (CRM) division still accounts for the ma- Maxwell, so the market is very mature and
services for the French car manufacturer jority of Arvato UK’s business and employs extremely challenging, yet attractive. Both
in the UK and Ireland since 2011. The part- 1,200 of its 2,000 UK employees. Four public and private sector organizations are
nership with Renault is a success story, years ago, Arvato UK moved its headquar- increasingly transferring their customer
boosting sales and customer satisfaction ters to Slough – a town of 160,000 people, support services to external providers.
while reducing costs. As a result of this, in 34 kilometers west of London, which is With a 17 percent share, customer experi-
2015, the partnership won a prestigious home to many international companies ence solutions were the most procured
European Customer Service award as thanks to its proximity to Heathrow Air- services in the UK outsourcing market in
“Outsourcing Partnership of the Year.” port. Based in the UK’s largest industrial 2016, according the Arvato UK. Outsourc-
Renault is one of several renowned estate, four floors, a white façade, lots of ing Index, which Arvato publishes annu-
household consumer brands that Arvato glass surfaces. Directly opposite the eleva- ally in cooperation with the industry
works for in the UK and Ireland. Other cli- tors hangs the “Arvato Charter” showing analysts at Nelson Hall.
ents include Microsoft, BMW, Zara, Bosch, the company’s fundamental values and Given the stiff competition, Arvato UK
Texaco, Adobe, British Gas, O2 and the principles, framed by a colorful collage of relies on a clear positioning, which can
Government’s Department for Transport, employee signatures. be summarized as “less is more.” “We
together with a number of local authori- Debra Maxwell, CEO, CRM Solutions focus on a handful of industries where
ties. Arvato began doing business in the UK & Ireland, Arvato nods towards the we see great growth potential and →

Debra Maxwell is optimistic
about the future of the
services business of Arvato UK.

BERTELSMANN IN BRITAIN • ARVATO
where competitors who seek to serve as groups. In addition to the work done in the
many industries as possible don’t have the UK in the summer of 2016, Arvato Finan-
requisite expertise. This gives us a clear- cial Solutions opened an RPA lab in the
cut differentiated profile, and makes it Irish capital of Dublin, where internal and
much easier to acquire specific expertise external IT specialists work on new robot-
for the subject areas in question,” says ics applications. At the end of 2016, Arvato
Debra Maxwell, explaining her strategy. UK hosted the first Arvato-wide RPA sum-
Retail, automotive and high-tech sectors mit at Daresbury, near Manchester, where
form the main focus of the company’s approximately 50 colleagues from five
CRM activities in the United Kingdom and countries met to exchange knowledge and
Ireland, in addition to public sector – the coordinate joint projects. “The pace of
“niche” (to use Maxwell’s expression) from development is incredibly rapid,” says
which Arvato UK intends to expand its Maxwell. “RPA first came to our attention
business. three years ago. Companies really started
Beyond a focus on specific industries, looking into it two years ago, and the topic
innovation is the second cornerstone of has been positively exploding for a year.”
Arvato UK’s outsourcing strategy. Consum- So, Debra Maxwell and her team tried
ers’ expectations of modern customer ser- to gain more knowledge about RPA, and
vice have risen enormously. “Nowadays, practical experience with the new technol-
they want to be able to pick the channel ogy, as quickly as possible. Last year,
and time they contact a company. As a ser- Arvato UK introduced an RPA solution at
vice provider, we are therefore called upon Sefton Metropolitan Borough Council as
to provide our partners with such options part of a pilot project to support the local Arvato UK has concentrated the CRM
for their customer service. We can only do authority in automating repetitive tasks. business at the headquarters in Slough
this if we have state-of-the-art technol- The results were remarkable. The software near London. One of the most important
ogy,” explains Maxwell. required just 42 seconds instead of the clients is the French automaker Renault,
usual five minutes to process a tax debit. for which Arvato has been handling
PROACTIVE WEBCHATS Employee satisfaction has also increased customer service in the United Kingdom
For instance, several years ago Arvato UK noticeably, since the monotonous comple- and Ireland since 2011.
and Renault jointly introduced “proactive” tion of forms has been reduced, freeing up
webchats, where users who visit the car time for more productive tasks. The time
manufacturer’s English website are di- that an employee previously spent on a tax
rectly contacted by a customer consultant debit can now be used to better track the
via a chat window about whether they re- collection of taxes. “This upgrades the em-
quire help and on what topic. The applica- ployee’s job, and the local authority also
tion has now become the most popular collects more taxes,” says Maxwell.
contact channel for Renault customers in To drive new opportunities with other
the UK and Ireland. Besides web chat, local authorities, Arvato UK signed a stra- “It’s not easy to prepare for a completely
video, social media platforms and apps are tegic partnership with the British software unknown situation. However, I’m confi-
playing an increasingly important role in developer Blue Prism, a pioneer in the dent that we are in a good starting position
the communication between companies field of robotics and automation, in Au- thanks to the extensive cooperation within
and customers. gust 2016. Since then, Arvato has been of- Arvato and the close links to Bertelsmann.”
Two closely interlinked technology fering local authorities solutions from There is already very close cooperation
trends are driving CRM service providers’ Blue Prism to speed up their administra- between the Solution Groups in the UK
innovative thinking: artificial intelligence tive procedures. The new technology and Ireland. There are joint projects,
and robotic process automation. This is makes staff training all the more impor- shared customers and jointly used sites.
about virtual helpers, rather than mechan- tant. “Many of our RPA developers were The exchange with other Arvato countries
ical ones, such as load-carrying robots. It previously employed by Sefton Council. and units is also on a steady rise. This
involves programming special software We took them on and trained them in such strong network is indispensable to the
solutions with data to enable them to in- a way that they are now robotics experts. success of the strategy: “It allows us to
dependently answer simple, recurring en- This is a really great thing.” offer existing and potential customers a
quiries. Because the handling of routine As much as technological advances broad package: customer service, financial
processes is reminiscent of the automated fuel Arvato UK’s growth prospects, the re- services, logistics. And our collective
actions of a robot, the term Robotics Pro- percussions of the Brexit decision for the know-how supports our role as experts,”
cess Automation (RPA) has caught on in economy are still unclear. The public sec- says Maxwell. “Our message is: we know
the tech industry. tor in particular, where contracts of 10 your industry, we know your consumers,
“We believe that RPA solutions will years or longer are the norm, represents a we understand your brand. For us, you are
have a significant influence on our busi- major challenge for service providers. not just one customer among many. In the
ness activities,” says Maxwell. Arvato UK is “Public institutions are reluctant to award end, we ask everyone: why would you
keen to advance the topic in the CRM Solu- contracts as long as the overall economic want to be a small fish in a big pond, when
tions and Financial Solutions solution conditions are uncertain,” says Maxwell. you could be a big fish in our pond?”

Arvato UK
→Active in the UK since: 2000
→Employees: 2,000
→Number of sites: 8
→Services: Customer Relationship Management,
Financial Services, Supply Chain Management
→Major customers: Renault, Microsoft, BMW,
British Gas, O2
Cooperation is key to the success of Arvato UK. Not just within the CRM team but also between
the Solution Groups.
“Our message is: we know

your industry, we know
your consumers, we
understand your brand.”
DEBRA MAXWELL

BERTELSMANN IN BRITAIN • BERTELSMANN PRINTING GROUP
You’ll Never Walk Alone

The Bertelsmann Printing Group has been mastering the
challenges of the difficult British print market for more than
10 years now – thanks to high quality, customer focus, and
a strong network. The winning of two major contracts is a
perfect example of this, as Richard Gray, Managing Director
of Prinovis UK, tells us.
T
he printing press produces a near run of six million copies per week and
endless stream of paper, one page some appear with additional inserts. The
after another, precisely folded; printing plant in Liverpool produces a
40,000 copies per hour. The dark weekly volume of around 2.5 million cop-
background and white typeface race by in ies of “Weekend” alone. “For our clients in
a blur. The scene would almost be hyp- the newspaper industry, the magazine
notic save for the incessant clatter of the supplements are important because they
conveyor belts. Richard Gray takes a quick support sales of their weekend editions.
look at the printed sections rushing past At the same time, they can sell ads in the
him, before fishing one out and checking magazines,” explains Gray.
it. The Managing Director of Prinovis UK is
holding the new edition of “Weekend,” the 70 NEW FULL-TIME JOBS
Saturday supplement of the “Daily Mail.” It In view of decreasing volumes in the
is one of five weekend editions that has printing market, winning these two large
been printed by Prinovis in Liverpool since and well-known customers can be consid-
April 2016. “We’re very pleased we were ered a coup for Prinovis UK. The Liverpool
able to win these orders,” he says. site is therefore well utilized for the fore-
Last year, the publishers of the “Daily seeable future, as both contracts have been
Mail” and “The Daily Telegraph,” two of signed with five-year terms. To be able to
the highest-circulation daily newspapers fulfill the orders reliably and with the
in the United Kingdom, commissioned usual quality, the management has created
Prinovis to produce the weekly magazines around 70 new full-time jobs. Prinovis UK production hall on the green-and-yellow
of their print-edition newspapers. “Satur- now employs 491 people. Machines have safety routes. Several meters above him,
day Telegraph Magazine” is produced for been relocated, reactivated, or bought new, conveyor belts carry the “Weekend” sup-
the Telegraph Media Group, as is “Stella,” such as a Ferag Unidrum saddle-stitcher, plements, pegged like a clothesline, across
which is included in the Sunday edition. to combine sections and add inserts into people and machines. They snake among
“You” and “Event” are produced for DMG finished products. pipes, shafts and struts, on the way to the
Media’s “The Mail on Sunday,” and “Week- “We’ve invested in several areas to be next station in the finishing process.
end” is included in “Daily Mail” Saturday able to cope with the high print runs,” says About a year after the start of production
edition. Together they have a total print Gray, leaving Press No. 2 and crossing the in May 2016, Gray draws a very positive

A happy arrangement for
Managing Director Richard Gray:
interim balance: “We enjoy what we do pleted, the biggest challenge they bring Prinovis UK is printing five weekly
and, most importantly, the customers are has to be overcome anew every week: “The magazines for daily newspapers in
satisfied.” supplements are very time-critical produc- England, a total of six million copies.
At the same time, he makes it clear this tions, where we have to meet tight and
is not a standard job, not just because of precise deadlines. Fortunately, there have
the size of the print runs; but the above- been no major difficulties to date. But we
average size of the “Weekend” title also have to constantly keep renewing our
required adjustments in the work flow and commitment and concentration so that no
equipment. Even as these tasks are com- mistakes occur.” →

BERTELSMANN IN BRITAIN • BERTELSMANN PRINTING GROUP
Prinovis UK
→ Founded: 2006
→ Employees: 490
→ Headquarters: Liverpool
→ Tonnage 2016: 155,000 t
→ Products: Magazines, catalogs, brochures
→ Major customers: DMG Media, News UK, Argos,
JD Williams
“We have a
really outstanding
team at every
Richard Gray has worked in the printing tablished itself as a reliable print partner level and in
all departments.“
business for almost 30 years. He has run that combines high quality with compre-
the Liverpool site since 2007. He knows hensive services. As the last active gravure
the situation in the industry very well and printing company in the UK, Prinovis
knows that quality and customer focus are occupies a strategically valuable position.
RICHARD GRAY
more important than ever before. The Although by now many of the orders are
printing market in the UK as well as in for offset printing, which is cheaper for
other European countries is “very volatile,” smaller orders, gravure printing remains
in other words, subject to constant change. the first choice for many customers, espe-
Many products that were once printed are cially for high print runs, which need to be
now only published digitally. On the other produced quickly – like daily newspaper
hand, in certain areas print runs have re- supplements. “In the end, it’s not a ques-
mained stable or are even increasing: Fly- tion of which printing method a customer
ers, catalogs and brochures play a major prefers,” says Gray. “The overall package of
role for retailers and traders in promoting price, performance and service is always
their products and attracting buyers. JD decisive. And here, gravure puts us ahead
Williams, for example, one of the UK’s in many cases.” Prinovis UK printed “Weekend,” Richard Gray explains: “We in-
largest mail order companies and one of 155,000 tons of paper last year – equiva- tend to further expand our finishing and
Prinovis UK’s largest customers, uses print lent to the weight of 560 Airbus A380s. inserting capacity during the course of the
heavily in its marketing mix and prints The high-performance plant-list is year, and will be investing here.”
most of its catalog and direct mail offers in another decisive factor for rapid, high-
Liverpool. “The market is declining, but quality production. Prinovis has four roto- SOLID GROUP
print is definitely still very much alive and gravure presses in Liverpool, along with The team in Liverpool benefits from sup-
indispensable in the media mix,” empha- five saddle-stitchers, two adhesive bind- port from its sister sites in Germany. In
sizes Gray. ers, and eight polybagging lines, which fact, DMG Media and Telegraph Media
wrap a specific number of magazines in Group, awarded Prinovis UK the bid partly
PRINT PARTNER clear plastic film at high speed, creating because the company operates as part of a
However, remaining indispensable as packages that are ideally suited for trans- powerful network. The German Prinovis
a provider of print products requires porting on pallets. As he walks alongside sites in Dresden, Ahrensburg and Nurem-
thoughtful positioning. Since opening the one of the polybagging machines wrap- berg take over parts of the production of
Liverpool site in 2006, Prinovis UK has es- ping the finished and stapled copies of less time-critical orders for their col-

Thomas Rabe got a firsthand impression of how efficiently Prinovis UK operates (right).
Thanks to the new orders, the machines in Liverpool are running at close to full capacity (left).
leagues in the UK. The resources freed up changes in the medium to long term: “We
by this can be devoted entirely to the are already thinking about what our com-
weekend magazines. “Without this sup- pany might look like five or 10 years from
port, we wouldn’t have been able to cope now. Perhaps at that point we will be a hy-
with the new volumes. This is a very big brid site and offer offset as well as gravure
help for us and shows the value-add that printing.” However, Gray is hesitant about
the Bertelsmann Printing Group offers all making specific predictions. He is familiar
of us,” praises Gray. Bertelsmann’s com- with the great challenges and fluctuations
mitment to the printing business not only of the print market, and says that it will be
helps in the specific case of this order, but crucial to keep up the sales push at a high
also in general: “Our customers know that level, to compensate for declining circula-
we are part of a solid group of companies tion with new orders. In addition, the
and can offer vast capacity thanks to the team is constantly examining all options
international network.” The message of for optimally adapting to customer re-
the most famous soccer anthem in the quirements.
world, which was first sung in Liverpool’s No matter what tasks Prinovis UK may
famous Anfield stadium by thousands of face in the future, Richard Gray is optimi
passionate fans, is true for Prinovis UK as stic about the future. “We have a strong
well: “You’ll never walk alone.” position in the market, based on which we
But to where exactly is Prinovis UK can further expand our business and
walking? Winning the two major contracts hopefully win new orders for Bertelsmann
last year coincided with the site’s tenth Printing Group.” He leaves no doubt about
anniversary. Now the task at hand is to who has played the greatest part in recent
continuously improve the production pro- successes: “Our employees are the key to
cesses for these orders, to increase profits our company. We have a really outstanding
for Prinovis UK and keep the customers team at every level and in all departments.
satisfied, explains Gray. “A renewal of the Everyone works very hard and tirelessly
two contracts in five years’ time must, of caters to the customers’ needs. I’m happy
course, be our goal.” that we have such a strong team here in
There is no question for the Managing Liverpool – as well as the backing of our
Director that the Liverpool site will face colleagues in Germany.”

BERTELSMANN IN BRITAIN • BERTELSMANN EDUCATION GROUP
Relias’s Specialty
previous jobs, says that this parallels the
learner experience the company delivers
in the U.S.
But there are a great many differences
between the two markets. “It proved inap-
Deanna Roepke heads the expansion of an propriate to deliver U.S.-based courses to
American company poised for growth across the UK, so we completely rebuilt our
Britain and Europe. initial product offering. In some cases, we
were able to adapt existing courses, but
most have been developed anew,” says
Roepke. “Not a single course was trans-
W
ferred from the U.S. ‘as is.’” The regulations
hat is “very British”? The of the Atlantic – all the ingredients for a and policies in the healthcare sectors of
Queen, of course. Driving on small company with big goals. Relias has both countries, which form the framework
the left. Not to mention after- arrived in the United Kingdom. for Relias’s training, often require different
noon tea. And the NHS. The first deal was already in place be- details in course content – for example,
Founded in 1948, the National Health fore the company officially launched in training on the correct actions in case of
Service guarantees “free at the point-of- spring 2016. “We didn’t wait to have a fully fire. So, courses were adapted and newly
delivery” healthcare to anyone living in the functioning office in the UK before hitting developed in a constant exchange between
UK. It has 1.6 million employees and an the ground running with Sales. We’ve si- the tiny London office and the Relias head-
annual budget of a staggering £120 billion, multaneously built Relias UK and the sales quarters in Cary, with its 500 employees.
financed – and this is unique in the effort for it from the very beginning,” says
world – exclusively by taxes. The most Deanna Roepke. She had started initial UNIQUELY BRITISH
cherished national institution in the UK – market research on the UK and identified And that was just the first step. The small,
more so than even the Royal Family, the potential customers while back in Relias’s dedicated Relias team in London soon en-
Beatles or the BBC. Not without its chal- hometown of Cary, North Carolina, in countered the idiosyncrasies of the British
lenges, the NHS is often viewed as a gigan- summer 2015. January 2016, the first cus- market in its sales and marketing efforts as
tic, less-than-efficient apparatus. Getting tomer was signed, and in March, the com- well. In the UK, the company finds a com-
to know the NHS “up close and personal” pany opened its doors in London – pletely different commercial environment,
over the past year, Deanna Roepke has initially from BMG’s premises, a stone’s dominated by the National Health Service
come to understand both perspectives. throw from Relias’s current home. “The and the basic idea of providing patients
For the past year, the American has been support we have received from other with free healthcare. “We had to under-
building Relias Learning in the UK. She Bertelsmann companies has been over- stand the impact of commissioning and
has had countless conversations with the whelming – and vital,” recalls Roepke. procurement processes on the buying
NHS and its offshoots, leading her to con- While BMG provided office space, RTL cycle, then reset our value proposition to
clude that in British healthcare “business Group and Penguin Random House help speak to a different kind of buyer with
simply isn’t the top priority.” Meanwhile, with processes such as taxes and payroll different top-of-mind of concerns,” says
she is deeply impressed, saying: “The NHS’ for their new sister company from Amer- Roepke.
mission of ensuring medical care for ica. Arvato opened doors to potential cus- But this model is increasingly coming
everyone regardless of their income, and tomers and provided UK healthcare under pressure. Deficits are on the rise.
Relias’s of supporting the most vulnerable expertise for product development. The government’s calls for more efficiency
in our society and those who care for and productivity, whilst maintaining high
them, simply are a wonderful match.” ENTHUSIASTIC RESPONSES quality of care, are becoming more urgent.
Relias’s small office in Marylebone Sta- Today, not quite a year later, Relias has This is precisely where Relias enters the
tion isn’t easy to find, as it is tucked away nearly 80 clients in the UK, most of them picture. “Relias Learning has a long track
directly above a branch of Starbucks right general practitioners (GPs). These custom- record of dramatically reducing training
inside a typical London brick building. ers are the first 2,000 users of the Relias costs while increasing productivity and
Above the coffee shop, a wooden door Learning system in the UK: doctors, nurses the quality of care,” says Roepke, summing
leads to a wooden staircase, where creak- and office staff who take annual training up her company’s value proposition. She
ing wooden corridors lead us to the Relias using online courses offered by Relias. At says the advantages compared to tradi-
offices. The windows look out onto the present, just over 100 courses are avail tional classroom training methods, which
tracks and grey steel construction of the able, with more being added on a monthly are still common in the UK, are obvious.
station roof, held together by big bolts. basis. The response is enthusiastic, as Now the task at hand is to win over
Outside there is the lively bustle of travel- Deanna Roepke reports. “Our learners tell more and more British healthcare provid-
ers, and inside the no less lively bustle us the system is engaging and easy to use. ers: through systematic marketing, be-
of a typical start-up. Traces of the last Not something you often hear about train- cause Relias is still a relatively new player
meeting; flip charts and whiteboards with ing. Their employers are impressed with in the UK; through tireless sales work; and
wild-looking sketches; screens and tele- the motivation of their employees and the through a steep learning curve regarding
phones from which thousands of calls to efficiency of the Relias Learning Manage- the NHS. It seems to be working out well.
potential customers have been made; plus ment System.” The business leader, who “We are close to signing a contract with
eight dedicated employees from both sides gained experience in Europe from her our first NHS Trust, one that has nearly

Deanna Roepke
in front of Marylebone
Station in London.
Inside is the heart of
Relias UK.
same culture, copyright, trademark and

free-movement-of-people issues facing “The differences
with the United
6,000 employees,” says Roepke. This step other international businesses.) Relias
is “a milestone in Relias UK’s business itself has a value proposition that is built
States are huge.”

development,” as such NHS Trusts operate to answer the challenges of staffing, com-
one or more hospitals. “And once we pliance, efficiencies and safeguarding
have gained one Trust, more will follow,” quality: all of the areas in which Brexit
Roepke believes. could have an impact. “It may be that DEANNA ROEPKE
To the degree she is worried about after Brexit, there will be new rules and
Brexit, Deanna Roepke’s focus is on its im- even greater pressure to be efficient. But
pact to the NHS. Relias in the UK serves efficiency while complying with rules is
strictly a UK market. (It does not have the precisely Relias’s specialty.”

BERTELSMANN IN BRITAIN • CHARITY
Going the Extra Mile

for Charity
Bertelsmann employees in the United Kingdom routinely
give 100 percent when it comes to helping other people.
INSIDE provides a few examples below of what they’re
prepared to do.
C
ommitment to social causes is a variety of ways – through a charity, a
widespread in the UK. Volunteer- nationwide campaign, or an initiative of
ing, especially since Tony Blair their own. Sports challenges, in which
and the New Labor movement participants are sponsored by colleagues
around the turn of the millennium, has for their efforts and sometimes push
seen considerable growth in British soci- themselves to the limits of their physical
ety, and particularly so for Bertelsmann endurance, are especially popular in the
companies and their employees across UK. INSIDE has compiled a small selection
the country. Every year, a large number of the many exemplary endeavors under-
of colleagues work for good causes in way at our companies.
Arvato UK
Mark Barry of Arvato UK aimed high when he spent
nearly two weeks trudging and climbing through the
Himalayas to Mount Everest base camp at 5,400
meters, not only fulfilling a personal dream, but also
raising around €3,500 for CLIC Sargent, a cancer
relief organization for children and teens (photo).
Prinovis UK
Prinovis UK employees get into the saddle. Eleven colleagues –
nine riders and two assistants – set off from Liverpool on a
96-kilometer cycling trip to Llandudno in Wales. It took a lot of
collective stamina to master the challenging route, but the effort
paid off handsomely: together, they raised €3,450 for the Cancer
Research organization.

Arvato UK
Around 50 Arvato UK employees plunged into the mud in the course of four
“Tough Mudder” runs during 2016. The 16- to 18-kilometer cross-country races
were strewn with numerous obstacles. Rewarded for battling through the mud,
the Arvato teams raised a total of around €6,000 for The Prince’s Trust charity
organization.
DK
DK supported the work of the Royal National Institute
of Blind People (RNIB), a charity committed to the
needs of visually impaired people, in many ways last
year. Among them, the publisher’s employees went
on a climbing tour of the roof of the London O2 Arena
Penguin Random House UK (photo). Around €32,000 was raised through voluntary
Penguin Random House UK made eyes light up by donating over actions, which the RNIB used to create audiobooks.
3,500 of its books to schools and orphanages for Christmas 2016. Among
the happy recipients were the pupils at Great Bentley Primary School
in Frating (photo). Beyond this, every week more than 60 employees
volunteer at nine partner schools to read one-on-one with children who
are challenged with their self-confidence and reading ability.

MAGAZINE
WORLD RIGHTS
Obama Books at Penguin Random House has acquired world
Penguin Random House

publication rights to two books by former US
President Barack Obama and his wife, former
First Lady Michelle Obama. The books – whose
content is yet unknown – are set to be
published in around 20 countries. They will be
published by Crown in the United States and
Canada and by Viking in the United Kingdom,
Australia, India, Ireland, New Zealand and South
Africa. The Penguin Random House Grupo
Editorial and Companhia das Letras will be
bringing the books to Latin America, while
Verlagsgruppe Random House will cover their
publication in Germany. With the announcement
of the two Obama books, Penguin Random
House clearly substantiates its political
importance as the premier publishing group
for US presidents – those of any color. Former
Democratic Presidents Jimmy Carter and Bill
Clinton have also published their books and
bestsellers with Penguin Random House, as has
former Republican President George W. Bush.
Former First Ladies Nancy Reagan and Hillary
Clinton also entrusted their books to Penguin
Random House. Additionally, countless books
about the individual presidents have appeared
Writing for Penguin under the group’s publishing houses. Penguin
Random House: Michelle Random House has already published three
and Barack Obama books about Barack Obama alone.
RTL GROUP
Reassignment within the Management Structure

With a reassignment of posts within RTL RTL Group. Anke Schäferkordt has led Medien- serves as a member of the Executive Board
Group’s management structure, the company gruppe RTL Deutschland – RTL Group’s largest of RTL Group alongside Co-CEO Guillaume de
has set the course for long-term continuity. business – since September 2005. During Posch and CFO Elmar Heggen. Furthermore,
Anke Schäferkordt, currently Co-CEO of RTL this time, Mediengruppe RTL Deutschland Bert Habets now serves as Executive Director
Group, has chosen to withdraw from the Board systematically expanded its portfolio with new on the RTL Group Board of Directors. He will
of Directors and the Executive Committee of linear TV channels and digital services, while maintain his role as CEO of RTL Nederland for
RTL Group in order to dedicate her energies simultaneously increasing its EBITA from the time being; a decision on the successor for
to managing Mediengruppe RTL Deutschland €240 million in 2005 to around €700 million this position is expected to be reached by the
and to fulfilling her role on the Bertelsmann (2015: €684 million). As the new Co-CEO, Bert end of this year.
Executive Board, the majority shareholder of Habets, formerly CEO of RTL Nederland, now
Anke Schäferkordt,
Bert Habets, Guillaume
de Posch and Elmar
Heggen (from left)

MAGAZINE
“INSPIRING PEOPLE, SHAPING THE FUTURE”
40 Years of the Bertelsmann Stiftung

For 40 years, the Gütersloh-based Bertelsmann foundation continues to pursue its concept of adds Liz Mohn, Vice Chair of Bertelsmann
Stiftung has been committed to promoting the placing people in a position to take responsibil- Stiftung’s Executive Board, in continuing the
active participation of all people in society – ity for society, to develop their talents and abil- work started by her husband. “In doing so, our
in keeping with its guiding theme “Inspiring ities, and to remove existing barriers. Founder view extends beyond the borders of our own
people. Shaping the future.” The foundation Reinhard Mohn was always convinced that the country. We want to – and have to – learn from
began its work on March 14, 1977. Numerous privilege of property also comes with a respon- the world. And humanity must remain at the
events and campaigns are planned for this year, sibility toward society. “I believe that entrepre- heart of this endeavor.”
during which the foundation hopes to remind neurs – and, as the constitution states, with the www.bertelsmann-stiftung.org
people of the work it has done for the people help of property – have a responsibility toward
and society of Germany while also directing society,” said Reinhard Mohn. “We want the
people’s view to the issues of the future. The foundation to be a catalyst for social change,”
A catalyst for social change:

Bertelsmann Stiftung, with its
headquarters in Gütersloh
BRAZILIAN FINANCIAL SERVICES PROVIDER
Arvato Acquires Majority Share in Intervalor

At the end of March, Arvato Financial our knowledge sharing activities. Our majority
Solutions (AFS) assumed a majority stake in stake acquisition is an additional component
Intervalor, a leading Brazilian company special- in our efforts to internationalize Arvato.” The
izing in investment services and receivables majority acquisition of Intervalor is part of the
management. Having entered the market with Bertelsmann strategy, which includes strength-
a minority shareholding of 41.5 percent in 2015, ening the growth platform of financial services
Arvato now owns 81.5 percent of the shares and expanding business in the growth regions
in Intervalor and plans to further expand the of Brazil, India and China.
company’s growth in its home market of Brazil
and in South America as a whole.
“After our very successful collaboration
with the colleagues at Intervalor, I’m pleased
that we are taking this next step of further
integrating the company into Arvato’s strategy From left: Frank Kebsch (CEO, AFS), Luis Carlos
for the future,” says Arvato CEO Fernando Carro. Bento (Founder and CEO, Intervalor), Rainer
“Together, we will expand financial operations in Majcen (President, Finance BPO, AFS) and Ralf
Brazil and South America while also intensifying Stalleker (VP, Business Central Europe, AFS)

MAGAZINE
ONLINE EDUCATION
Udacity’s
First Acquisition
Udacity has acquired the U.S. company Cloud-
labs, which operates under the name Terminal.com
FRANCE on the market. Cloudlabs is working on the
development of an especially attractive online
New learning environment – a field in which Udacity

is already active. This marks the first acquisition
Arvato Site for made by the online education provider, founded

in 2011; Udacity’s major shareholders include
Zalando Grand opening of the distribution center near Paris

Bertelsmann, a strategic investor in the compa-
ny since 2014.
The international logistics network of Arvato fashion retailer. Thanks to this new site just
SCM Solutions is continuing to grow. In coop- outside of Paris, where up to 200 people are
eration with Zalando, Arvato has opened a new expected to be employed in the future, Zalando
distribution center in Moissy-Cramayel, south customers in France will be able to receive
of Paris, with 20,000 square meters of storage their orders much faster. Gaining Zalando as
space. Since January of this year, Arvato SCM a new customer underlines the importance of
Solutions has used this location to carry out its the fashion industry for Arvato’s e-commerce
distribution services for Europe’s leading online businesses.
FINANCIAL TECHNOLOGY
Arvato Acquires
an Interest in
Solaris Bank
With an eight-figure investment, Arvato
Financial Solutions has acquired an interest in the
Berlin-based technology company Solaris Bank.
The start-up from the field of financial technology
(fintech) provides companies with a platform
for processing bank transactions and offers its
own financial products. The service is primarily
directed at e-commerce vendors, fintech service
NEW ALBUM THIS YEAR
providers and other digital businesses. According
Avril Lavigne to Solaris Bank, if such companies worked with

conventional banks, their clients typically wouldn’t
with BMG
find the technologies and structures needed to
effectively support their rapid growth. Through
its participation in Solaris Bank, Arvato Financial
Solutions hopes that, in the future, it will provide
Another top-class music artist has signed even more innovative, technologically improved
on with BMG. The internationally renowned and entirely new solutions – such as longer-term
award-winning singer/songwriter Avril Lavigne financing options – to its customers that operate
struck a worldwide (except for Japan) record in many different countries. Arvato Financial
deal with the Bertelsmann music publisher at Solutions has been supporting young fintech
the end of February. Her next album is already companies for some time now and will be able to
in the works and is slated to be released some- introduce its extensive range of services into the
time this year – under the BMG label. Solaris Bank network.

MAGAZINE
AWARD E-COMMERCE LOGISTICS
Grand Cross Twenty Years of

for Liz Mohn Arvato in Russia
Liz Mohn has been awarded the Grand Cross The employees and management of Arvato
of the Order of Alfonso X the Wise for her role Russia celebrated the company’s 20th anniver-
as president of the Fundación Bertelsmann sary in March. Since its launch in 1997, Arvato
in Spain. At the beginning of March, Spanish has grown into a key partner for the country’s
Prime Minister Mariano Rajoy and Minister of e-commerce logistics and is now working with
Education and Culture Íñigo Méndez de Vigo major online shops for Russian and international
presented the Grand Cross in Spain’s national retailers. The company’s focus lies on the market
museum, the Prado, in Madrid. Francisco Belil, segments of fashion, cosmetics, household
Vice President of the Fundación Bertelsmann, goods, software and high-tech. Arvato now has
accepted the award on behalf of Liz Mohn. over 1,500 employees in Russia.
With the Grand Cross of the Order of Alfonso X,
Spain honors outstanding achievements in
the fields of education, the sciences, culture,
training and research.
Committed to caring for

society in Spain: Liz Mohn
FREMANTLE MEDIA AND MEDIENGRUPPE RTL Fremantle Media International (FMI) and
Mediengruppe RTL Deutschland have signed a
Bundling TV Program multiyear contract for the acquisition of inter-
national program distribution rights. Under the
Distribution Rights terms of the deal, FMI will become the exclusive
global distributor (except in German-speaking
countries) for Mediengruppe RTL Deutschland’s
fiction and nonfiction productions, both original
and commissioned. This comprises several
hundred hours of content, including all seasons
of RTL’s long-running hit “Alarm für Cobra 11 –
die Autobahnpolizei” (“Alarm for Cobra 11 – the
Highway Police”). With 21 seasons and over
300 episodes already aired, this action series
regularly delivers strong market shares for
the TV broadcaster. New episodes will be aired
on RTL starting in April. Also included in the
deal is RTL’s latest hit series “Der Lehrer” (“The
Teacher”), for which RTL has recently commis-
sioned a sixth season.
RTL hit series: “Cobra 11” and

“Der Lehrer”

MAGAZINE
250 NEW TITLES EACH YEAR
Penguin India’s 30th Anniversary

The Penguin publishing house is a cultural
institution. Not only does this apply in its native
United Kingdom, but also in India, where English
is the second official language and where
Penguin Random House India serves as the
country’s largest publisher of English-language
literature. Penguin’s Indian subsidiary has been
handling the distribution of Penguin books on
the subcontinent since 1985, and has been
publishing books itself here since 1987. Penguin
India will be celebrating this 30-year anniversary GRUNER + JAHR
with a number of special events throughout the
year. Every year, Penguin Random House India
brings around 250 new titles to the market, with
Magazines
a backlist currently comprising over 3,000 titles
in all of its fiction and nonfiction genres. The
for Listening
most successful Indian authors who publish with
the company include Jhumpa Lahiri, Ramach- Many magazine articles from the French
andra Guha, Salman Rushdie, Gurcharan Das, G+J publisher Prisma Media are now available
Basharat Peer, Amartya Sen, Ravinder Singh, not only for reading – but also for listening.
Ravi Subramanian and Nadeem Aslam. This service is now also available via Deezer,
the most popular streaming service in France.
Prisma Media uses the service provider Infonity
to produce audio files containing readings of
Right: Author Sanjeev Sanyal. Below: “Penguin 30,” selected articles from the publisher’s magazines.
a special edition featuring 30 bestsellers by Indian Thanks to this service, articles from the maga-
authors from the last 30 years.
zines “Voici,” “Femme Actuelle,” “Ça m’intéresse,”
“Capital” and “Business Insider” are available
as audio files. With the help of Infonity, Prisma
Media is the first media group with a presence
on Deezer. Deezer currently has 43 million songs
available that 10 million active users per day
listen to. Deezer is available in 180 countries
worldwide and is the number-one service of its
kind in France. The company was established in
2007 and has its headquarters in Paris. Deezer
is available via PC and all portable devices.
CAREER EVENT
10 Years of
“Talent Meets 10TH ANNIVERSARY EDITION
Bertelsmann” Berlin | July 3 - July 5, 2017
Lay_CYOC_TMB17_Snippets_01b_SH.indd 1 27.03.17 15:03
Bertelsmann is accepting applications for the Your Own Career” employer branding campaign. 2013 has included participants from all over the
tenth edition of “Talent Meets Bertelsmann.” Since 2008, the company has regularly met world. Last year, applications were received from
Students from all over the world have until with top students at its Berlin premises, Unter 78 countries. In all, Bertelsmann has hired more
May 21 of this year to apply for the prestigious den Linden 1, where several days are spent than 100 top students from this event format
career event, which will take place July 3 to 5, discussing creative product developments and for internships or permanent positions in recent
2017. The event is once again the highlight of innovative business models. The event was ini- years. In addition, an alumni network of more
Bertelsmann’s multi-award-winning “Create tially aimed at students from Germany, but since than 500 participants has been created.

PUBLISHING CREDITS
INSIDE
The international magazine
for Bertelsmann employees
Published by:
The Executive Board of
Bertelsmann SE & Co. KGaA, Gütersloh
Overall Responsibility:
Karin Schlautmann
Editors:
Markus Harbaum, Markus Laß,
Jan Witt, Hendrik Baumann
Art Direction and Design:

Dirk Bartos, BartosKersten Printmediendesign
Realization:
Territory CTR GmbH, Gütersloh
Production:
Mohn Media Mohndruck GmbH
INSIDE was printed on Respecta 100,

an FSC-certified paper.
Contact:
INSIDE
Corporate Communications
Bertelsmann SE & Co. KGaA
Carl-Bertelsmann-Strasse 270
33311 Gütersloh
Tel.: +49 (0) 5241 80-2368

E-mail: inside@bertelsmann.com
Photo Credits:
Cover: Markus Harbaum. S. 4/5: Alex Griffiths (2),
Dieter Duneka, Arne Weychardt. S. 15: Arne Weychardt.
S. 16/17: Arne Weychardt. S. 20/21: Markus Harbaum.
S. 22: Arne Weychardt. S. 24–27: Arvato, Bertelsmann,
dpa, Intertopics, Picture Alliance/Empics, Picture
Alliance/Photoshot, Prinovis, Sony Music. S. 28/29:
Alex Griffiths. S. 31: Markus Harbaum. S. 32–34:
Alex Griffiths. S. 35: DK. S. 36/37: Arvato, BMG, DK,
Fremantle Media, dpa, Penguin Random House, Picture
Alliance/Citypress 24, Picture Alliance/Photoshot,
Prinovis. S. 38/39: Alex Griffiths. S. 40/41: Fremantle
Media. S. 42–44: Alex Griffiths. S. 45: Penguin Random
House. S. 46–48: Alex Griffiths. S. 39: BMG. S. 51:
Keith van Loen. S. 52/53: Arvato. S. 54–57: Paul
McMullin. S. 59: Alex Griffiths. S. 60/61: Arvato, DK,
Penguin Random House, Prinovis. S. 62–66: Arvato,
Bertelsmann Stiftung, Penguin Random House,
Picture Alliance/Abaca, Picture Alliance/Empics, RTL/
Frank Dicks, RTL/Guido Engels, RTL Group. Back:
Bertelsmann Stiftung.
“Inspiring people.
Shaping the future.”
40 Years of the Bertelsmann Stiftung
www.bertelsmann-stiftung.org

Bertelsmann 2017 05 Eng

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bertelsmann 2017 05 Eng

Uploaded by

Copyright:

Available Formats

INSIDE

The magazine for employees – May 2017

n INSIDE de mai 2017

More information on BENET:

I wish you an inspiring read.

INSIDE BERTELSMANN / MAY 2017 03

23 Facts & Figures

38 Company Portrait 54 Print

42 Entrepreneur Portrait 58 Education

INSIDE BERTELSMANN / MAY 2017 05

Happy about the very good

06 INSIDE BERTELSMANN / MAY 2017

INSIDE BERTELSMANN / MAY 2017 07

Record Operating Results and

08 INSIDE BERTELSMANN / MAY 2017

INSIDE BERTELSMANN / MAY 2017 09

Group strategy: target portfolio –

erating earnings and the lower costs from

Medien-Manufaktur, and worked together

10 INSIDE BERTELSMANN / MAY 2017

Group (in € bn)

ably faster, and

4 28. März 2017 · Bilanzpressekonferenz

INSIDE BERTELSMANN / MAY 2017 11

12 INSIDE BERTELSMANN / MAY 2017

Group strategy: Financial performance – Significant growth in revenue

2011 2016 ~2020

5 March 28, 2017 · Annual Press Conference

INSIDE BERTELSMANN / MAY 2017 13

“Very Positive Developments”

14 INSIDE BERTELSMANN / MAY 2017

INSIDE BERTELSMANN / MAY 2017 15

Trust and Confidence

16 INSIDE BERTELSMANN / MAY 2017

INSIDE BERTELSMANN / MAY 2017 17

18 INSIDE BERTELSMANN / MAY 2017

improved Employee Survey

What Happens after

INSIDE BERTELSMANN / MAY 2017 19

20 INSIDE BERTELSMANN / MAY 2017

INSIDE BERTELSMANN / MAY 2017 21

The Future Belongs to Europe

“We need the Europe.

22 INSIDE BERTELSMANN / MAY 2017

Fremantle Media UK produced around

BMG‘s marketing plan for an artist covers

to process a tax debit, instead 80 percent of the BMG portfolio

Bertelsmann‘s Big Birthday

Songs of the female soul trio The Three Degrees

24 INSIDE BERTELSMANN / MAY 2017

BMG headquarters In 1997, the launch of UK’s new

INSIDE BERTELSMANN / MAY 2017 25

BMG also represented

Arvato employees serving

26 INSIDE BERTELSMANN / MAY 2017

“The Girl on the Train” by British

2013 2014 2015 2016

INSIDE BERTELSMANN / MAY 2017 27

INSIDE BERTELSMANN / MAY 2017 29

“I’m worried the

30 INSIDE BERTELSMANN / MAY 2017

INSIDE BERTELSMANN / MAY 2017 31

32 INSIDE BERTELSMANN / MAY 2017

INSIDE BERTELSMANN / MAY 2017 33