Consolidated Financial Statements
Selected chapters from the Bertelsmann Financial Statements 2018 can be found here in digital form.
The complete Annual Report 2018 can be found here as a PDF flip catalog.
Consolidated Income Statement
| in € millions | Notes | 2018 | 2017 | |
|---|---|---|---|---|
| Revenues | 1 | 17,673 | 17,190 | |
| – thereof revenues from contracts with customers | 17,455 | n/a | ||
| – thereof revenues from financial services | 218 | n/a | ||
| Other operating income | 2 | 473 | 568 | |
| Cost of materials | 13 | (5,535) | (5,487) | |
| Royalty and license fees | (1,593) | (1,547) | ||
| Personnel costs | 3 | (5,658) | (5,541) | |
| Amortization/depreciation, impairment and reversals on intangible assets and property, plant and equipment | 4 | (847) | (691) | |
| Other operating expenses | 5 | (2,954) | (2,781) | |
| Results from investments accounted for using the equity method | 11 | 57 | 63 | |
| Impairment and reversals on investments accounted for using the equity method | 11 | (2) | (50) | |
| Results from financial assets | n/a | (10) | ||
| Results from disposals of investments | 12 | 6 | 182 | |
| EBIT (earnings before interest and taxes) | 1,620 | 1,896 | ||
| Interest income | 6 | 15 | 14 | |
| Interest expenses | 6 | (115) | (134) | |
| Other financial income | 7 | 49 | 26 | |
| Other financial expenses | 7 | (165) | (125) | |
| Financial result | (216) | (219) | ||
| Earnings before taxes from continuing operations | 1,404 | 1,677 | ||
| Income tax expense | 8 | (301) | (472) | |
| Earnings after taxes from continuing operations | 1,103 | 1,205 | ||
| Earnings after taxes from discontinued operations | 1 | (7) | ||
| Group profit or loss | 1,104 | 1,198 | ||
| attributable to: | ||||
| Bertelsmann shareholders | ||||
| Earnings from continuing operations | 752 | 783 | ||
| Earnings from discontinued operations | 1 | (7) | ||
| Earnings attributable to Bertelsmann shareholders | 753 | 776 | ||
| Non-controlling interests | ||||
| Earnings from continuing operations | 351 | 422 | ||
| Earnings from discontinued operations | – | – | ||
| Earnings attributable to non-controlling interests | 351 | 422 | ||
| As of January 1, 2018, the new accounting standards IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers were applied for the first time. In accordance with the transitional provisions of IFRS 9 and IFRS 15, prior year comparatives have not been adjusted. Further details are presented in the section “Impact of New Financial Reporting Standards.” | ||||
Consolidated Statement of Comprehensive Income
| in € millions | Notes | 2018 | 2017 | |
|---|---|---|---|---|
| Group profit or loss | 1,104 | 1,198 | ||
| Items that will not be reclassified subsequently to profit or loss | ||||
| Remeasurement component of defined benefit plans | (60) | 176 | ||
| Changes in fair value of equity instruments | 3 | n/a | ||
| Share of other comprehensive income of investments accounted for using the equity method | – | – | ||
| Items that will be reclassified subsequently to profit or loss when specific conditions are met | ||||
| Exchange differences | ||||
| – changes recognized in other comprehensive income | 94 | (445) | ||
| – reclassification adjustments to profit or loss | 20 | 13 | ||
| Available-for-sale financial assets | ||||
| – changes in fair value recognized in other comprehensive income | n/a | 17 | ||
| – reclassification adjustments to profit or loss | n/a | (35) | ||
| Cash flow hedges | ||||
| – changes in fair value recognized in other comprehensive income | 23 | (45) | ||
| – reclassification adjustments to profit or loss | 2 | (27) | ||
| Share of other comprehensive income of investments accounted for using the equity method | (2) | (8) | ||
| Other comprehensive income net of tax | 17 | 80 | (354) | |
| Group total comprehensive income | 1,184 | 844 | ||
| attributable to: | ||||
| Bertelsmann shareholders | 816 | 508 | ||
| Non-controlling interests | 368 | 336 | ||
| As of January 1, 2018, the new accounting standards IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers were applied for the first time. In accordance with the transitional provisions of IFRS 9 and IFRS 15, prior year comparatives have not been adjusted. Further details are presented in the section “Impact of New Financial Reporting Standards.” | ||||
Consolidated Balance Sheet
| in € millions | Notes | 12/31/2018 | 12/31/2017 | |
|---|---|---|---|---|
| Assets | ||||
| Non-current assets | ||||
| Goodwill | 9 | 8,410 | 8,084 | |
| Other intangible assets | 9 | 2,591 | 2,478 | |
| Property, plant and equipment | 10 | 1,670 | 1,658 | |
| Investments accounted for using the equity method | 11 | 658 | 952 | |
| Minority stakes and other financial assets | 12 | 1,143 | 644 | |
| Trade and other receivables | 14 | 59 | 87 | |
| Other non-financial assets | 15 | 851 | 710 | |
| Deferred tax assets | 8 | 1,051 | 928 | |
| 16,433 | 15,541 | |||
| Current assets | ||||
| Inventories | 13 | 1,735 | 1,664 | |
| Trade and other receivables | 14 | 4,459 | 4,010 | |
| Other financial assets | 12 | 71 | 67 | |
| Other non-financial assets | 15 | 1,002 | 868 | |
| Current income tax receivables | 156 | 120 | ||
| Cash and cash equivalents | 16 | 1,405 | 1,440 | |
| 8,828 | 8,169 | |||
| Assets held for sale | 82 | 3 | ||
| 25,343 | 23,713 | |||
| Equity and liabilities | ||||
| Equity | 17 | |||
| Subscribed capital | 1,000 | 1,000 | ||
| Capital reserve | 2,345 | 2,345 | ||
| Retained earnings | 5,129 | 4,497 | ||
| Bertelsmann shareholders’ equity | 8,474 | 7,842 | ||
| Non-controlling interests | 1,364 | 1,285 | ||
| 9,838 | 9,127 | |||
| Non-current liabilities | ||||
| Provisions for pensions and similar obligations | 18 | 1,738 | 1,685 | |
| Other provisions | 19 | 135 | 126 | |
| Deferred tax liabilities | 8 | 127 | 124 | |
| Profit participation capital | 20 | 413 | 413 | |
| Financial debt | 21 | 4,670 | 4,251 | |
| Trade and other payables | 22 | 353 | 366 | |
| Other non-financial liabilities | 22 | 395 | 391 | |
| 7,831 | 7,356 | |||
| Current liabilities | ||||
| Other provisions | 19 | 299 | 323 | |
| Financial debt | 21 | 667 | 668 | |
| Trade and other payables | 22 | 4,718 | 4,313 | |
| Other non-financial liabilities | 22 | 1,839 | 1,709 | |
| Current income tax payables | 88 | 214 | ||
| 7,611 | 7,227 | |||
| Liabilities related to assets held for sale | 63 | 3 | ||
| 25,343 | 23,713 | |||
| As of January 1, 2018, the new accounting standards IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers were applied for the first time. In accordance with the transitional provisions of IFRS 9 and IFRS 15, prior year comparatives have not been adjusted. Further details are presented in the section “Impact of New Financial Reporting Standards.” | ||||
Consolidated Cash Flow Statement
Consolidated Cash Flow Statement
| in € millions | 2018 | 2017 (adjusted) | ||
|---|---|---|---|---|
| Group earnings before interest and taxes | 1,621 | 1,889 | ||
| Taxes paid | (534) | (434) | ||
| Depreciation and write-ups of non-current assets | 855 | 766 | ||
| Results from disposals of investments | (7) | (176) | ||
| Gains/losses from disposals of non-current assets | (62) | (119) | ||
| Change in provisions for pensions and similar obligations | (113) | (121) | ||
| Change in other provisions | (20) | 7 | ||
| Change in net working capital | (178) | (225) | ||
| Fair value measurement of investments | (157) | (15) | ||
| Other effects | 32 | 33 | ||
| Cash flow from operating activities | 1,437 | 1,605 | ||
| – thereof discontinued operations | – | – | ||
| Investments in: | ||||
| – intangible assets | (295) | (319) | ||
| – property, plant and equipment | (325) | (360) | ||
| – financial assets | (258) | (211) | ||
| – purchase prices for consolidated investments (net of acquired cash) | (556) | (213) | ||
| Disposals of subsidiaries and other business units | 113 | 4 | ||
| Disposals of other fixed assets | 191 | 339 | ||
| Cash flow from investing activities | (1,130) | (760) | ||
| – thereof discontinued operations | 1 | – | ||
| Issues of bonds and promissory notes | 942 | 697 | ||
| Redemption of bonds and promissory notes | (400) | – | ||
| Proceeds from/redemption of other financial debt | (150) | 282 | ||
| Interest paid | (196) | (166) | ||
| Interest received | 27 | 12 | ||
| Dividends to Bertelsmann shareholders | (180) | (180) | ||
| Dividends to non-controlling interests and payments to partners in partnerships (IAS 32.18(b)) | (356) | (743) | ||
| Change in equity | (59) | (657) | ||
| Cash flow from financing activities | (372) | (755) | ||
| – thereof discontinued operations | – | – | ||
| Change in cash and cash equivalents | (65) | 90 | ||
| Exchange rate effects and other changes in cash and cash equivalents | 28 | (24) | ||
| Cash and cash equivalents 1/1 | 1,442 | 1,376 | ||
| Cash and cash equivalents 12/31 | 1,405 | 1,442 | ||
| Less cash and cash equivalents included within assets held for sale | – | (2) | ||
| Cash and cash equivalents 12/31 (according to the consolidated balance sheet) | 1,405 | 1,440 | ||
| As of January 1, 2018, the new accounting standards IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers were applied for the first time. In accordance with the transitional provisions of IFRS 9 and IFRS 15, prior year comparatives have not been adjusted. Further details are presented in the section “Impact of New Financial Reporting Standards.” Details on the cash flow statement and the adjustment made are presented in note 25 “Cash Flow Statement.” | ||||
Change in Net Financial Debt
| in € millions | 2018 | 2017 (adjusted) | ||
|---|---|---|---|---|
| Net financial debt at 1/1 | (3,479) | (2,625) | ||
| Cash flow from operating activities | 1,437 | 1,605 | ||
| Cash flow from investing activities | (1,130) | (760) | ||
| Interest, dividends and changes in equity, additional payments (IAS 32.18(b)) | (764) | (1,734) | ||
| Exchange rate effects and other changes in net financial debt | 4 | 35 | ||
| Net financial debt at 12/31 | (3,932) | (3,479) | ||
| Net financial debt is the balance of the balance sheet positions “Cash and cash equivalents” and “Financial debt.” | ||||
Consolidated Statement of Changes in Equity
| Sub- scribed capital |
Capital reserve1) |
Retained earnings | Bertelsmann shareholders' equity |
Non- controlling interests |
Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Other retained earnings |
Accumulated other comprehensive income2) | ||||||||||
| in € millions | Exchange differences |
Available- for-sale financial assets |
Fair value reserve |
Cash flow hedges |
Share of
other comprehensive income of invest- ments accounted for using the equity method |
||||||
| Balance as of 1/1/2017 | 1,000 | 2,345 | 4,276 | 113 | 85 | n/a | 32 | 21 | 7,872 | 2,023 | 9,895 |
| Group profit or loss | – | – | 776 | – | – | n/a | – | – | 776 | 422 | 1,198 |
| Other comprehensive income | – | – | 170 | (361) | (16) | n/a | (54) | (7) | (268) | (86) | (354) |
| Group total comprehensive income | – | – | 946 | (361) | (16) | n/a | (54) | (7) | 508 | 336 | 844 |
| Dividend distributions3) | – | – | (180) | – | – | n/a | – | – | (180) | (789) | (969) |
| Changes in ownership interests in subsidiaries that do not result in a loss of control |
– | – | (400) | 52 | – | n/a | – | 1 | (347) | (282) | (629) |
| Equity transactions with shareholders | – | – | (580) | 52 | – | n/a | – | 1 | (527) | (1,071) | (1,598) |
| Other changes | – | – | (11) | – | – | n/a | – | – | (11) | (3) | (14) |
| Balance as of 12/31/2017 | 1,000 | 2,345 | 4,631 | (196) | 69 | n/a | (22) | 15 | 7,842 | 1,285 | 9,127 |
| Balance as of 1/1/2018 | 1,000 | 2,345 | 4,631 | (196) | 69 | n/a | (22) | 15 | 7,842 | 1,285 | 9,127 |
| Adjustment | – | – | 59 | – | (69) | 10 | – | (8) | (8) | (3) | (11) |
| Balance as of 1/1/20184) | 1,000 | 2,345 | 4,690 | (196) | n/a | 10 | (22) | 7 | 7,834 | 1,282 | 9,116 |
| Group profit or loss | – | – | 753 | – | n/a | – | – | – | 753 | 351 | 1,104 |
| Other comprehensive income | – | – | (67) | 110 | n/a | 3 | 19 | (2) | 63 | 17 | 80 |
| Group total comprehensive income | – | – | 686 | 110 | n/a | 3 | 19 | (2) | 816 | 368 | 1,184 |
| Dividend distributions | – | – | (180) | – | n/a | – | – | – | (180) | (293) | (473) |
| Changes in ownership interests in subsidiaries that do not result in a loss of control |
– | – | 6 | 1 | n/a | – | – | – | 7 | (8) | (1) |
| Equity transactions with shareholders | – | – | (174) | 1 | n/a | – | – | – | (173) | (301) | (474) |
| Other changes | – | – | (2) | – | n/a | (1) | – | – | (3) | 15 | 12 |
| Balance as of 12/31/2018 | 1,000 | 2,345 | 5,200 | (85) | n/a | 12 | (3) | 5 | 8,474 | 1,364 | 9,838 |
| 1) The capital reserve mainly includes share premiums received from the issue of ordinary shares in excess of their par values. 2) As in the previous year, as of December 31, 2018, no significant amounts relate to assets classified as held for sale in accordance with IFRS 5. 3) The dividend distributions to non-controlling interests recognized in the previous year included a special dividend distribution to the co-shareholder in Penguin Random House in the amount of €430 million. 4) The adjustments result from the first-time application of the financial reporting standards IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers as of January 1, 2018. In accordance with the transitional provisions of IFRS 9 and IFRS 15, prior year comparatives have not been adjusted. Further details are presented in the section “Impact of New Financial Reporting Standards.” |
|||||||||||
Segment Information (Continuing Operations)
| RTL Group | Penguin Random House | Gruner+ Jahr | BMG | Arvato | Bertelsmann Printing Group | Bertelsmann Education Group | Bertelsmann Investments2) | Total divisions | Corporate | Consolidation | Continuing operations | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in € millions | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 |
| Revenues from external customers | 6,494 | 6,358 | 3,424 | 3,359 | 1,420 | 1,493 | 542 | 504 | 4,033 | 3,754 | 1,468 | 1,498 | 257 | 189 | 12 | – | 17,650 | 17,155 | 23 | 35 | – | – | 17,673 | 17,190 |
| Intersegment revenues | 11 | 15 | – | – | 20 | 20 | 3 | 3 | 67 | 69 | 171 | 183 | 1 | – | – | – | 273 | 290 | 32 | 39 | (305) | (329) | – | – |
| Divisional revenues | 6,505 | 6,373 | 3,424 | 3,359 | 1,440 | 1,513 | 545 | 507 | 4,100 | 3,823 | 1,639 | 1,681 | 258 | 189 | 12 | – | 17,923 | 17,445 | 55 | 74 | (305) | (329) | 17,673 | 17,190 |
| Operating EBITDA | 1,402 | 1,478 | 528 | 521 | 140 | 145 | 122 | 104 | 377 | 320 | 85 | 118 | 37 | 3 | (3) | (3) | 2,688 | 2,686 | (95) | (53) | (7) | 3 | 2,586 | 2,636 |
| EBITDA margin1) | 21.5 % | 23.2 % | 15.4 % | 15.5 % | 9.7 % | 9.6 % | 22.5 % | 20.5 % | 9.2 % | 8.4 % | 5.2 % | 7.0 % | 14.5 % | 1.8 % | 25.8 % | n/a | 15.0 % | 15.4 % | n/a | n/a | n/a | n/a | 14.6 % | 15.3 % |
| Impairment (-)/reversals (+) on intangible assets and property, plant and equipment | (105) | (3) | – | – | (46) | (32) | – | – | (6) | (2) | (3) | – | (25) | – | – | – | (185) | (37) | – | – | 2 | – | (183) | (37) |
| Results from investments accounted for using the equity method | 58 | 69 | (2) | – | 9 | 8 | – | – | 7 | 9 | – | – | (5) | (16) | (10) | (6) | 57 | 64 | – | – | – | (1) | 57 | 63 |
| Invested capital | 6,438 | 6,564 | 2,370 | 2,309 | 667 | 690 | 1,885 | 1,816 | 1,619 | 1,673 | 187 | 172 | 1,422 | 904 | 899 | 576 | 15,487 | 14,704 | 124 | 99 | (21) | (36) | 15,590 | 14,767 |
| As of January 1, 2018, the new accounting standards IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers were applied for the first time.
In accordance with the transitional provisions of IFRS 9 and IFRS 15, prior year comparatives have not been adjusted. Further details are presented in the section
“Impact of New Financial Reporting Standards.” Further details on segment reporting are presented in note 26 “Segment Reporting.” 1) Operating EBITDA in percent of revenues. 2) The business development of Bertelsmann Investments is determined primarily on the basis of EBIT. EBIT amounted to €96 million (previous year: €141 million). | ||||||||||||||||||||||||
Reconciliation to Operating EBITDA (Continuing Operations)
| in € millions | 2018 | 2017 |
|---|---|---|
| EBIT from continuing operations | 1,620 | 1,896 |
| Special items | ||
| – impairment on goodwill and other intangible assets with indefinite useful life as well as gains from business combinations | 173 | 30 |
| – adjustment to carrying amounts on assets held for sale | 6 | 4 |
| – impairment on other financial assets at amortized cost | – | 20 |
| – impairment and reversals on investments accounted for using the equity method | 2 | 50 |
| – results from disposals of investments | (6) | (182) |
| – fair value measurement of investments | (157) | (15) |
| – restructuring and other special items | 278 | 176 |
| Amortization/depreciation, impairment and reversals on intangible assets and property, plant and equipment | 847 | 691 |
| Adjustments on amortization/depreciation, impairment and reversals on intangible assets and property, plant and equipment included in special items | (177) | (34) |
| Operating EBITDA from continuing operations | 2,586 | 2,636 |
| As of January 1, 2018, the new accounting standards IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers were applied for the first time. In accordance with the transitional provisions of IFRS 9 and IFRS 15, prior year comparatives have not been adjusted. Further details are presented in the section “Impact of New Financial Reporting Standards.” | ||
Information by Geographical Areas (Continuing Operations)
| Germany | France | United Kingdom | Other European countries | United States | Other countries | Continuing operations | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in € millions | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 |
| Revenues from external customers | 5,859 | 5,840 | 2,336 | 2,306 | 1,152 | 1,169 | 3,336 | 3,212 | 3,896 | 3,526 | 1,094 | 1,137 | 17,673 | 17,190 |
| Non-current assets1) | 3,220 | 3,231 | 1,092 | 1,180 | 1,301 | 1,324 | 3,267 | 3,291 | 3,514 | 2,947 | 277 | 247 | 12,671 | 12,220 |
| 1) Non-current assets comprise property, plant and equipment, and intangible assets (including goodwill). Details on segment reporting are presented in note 26 “Segment Reporting.” | ||||||||||||||
Information on Revenue Sources (Continuing Operations)
| Own products
and merchandise | Services | Advertising | Rights and licenses | Continuing operations | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| in € millions | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |
| Revenues from external customers | 4,349 | 4,335 | 6,375 | 6,073 | 4,061 | 4,406 | 2,888 | 2,376 | 17,673 | 17,190 | |
