2017

Arvato –At a Glance

Arvato is an international service provider. About 70,000 employees in more than

40 countries design and implement innovative solutions for clients from all over the

world, covering a wide range of business processes. These include CRM, SCM, financial

and IT solutions. In short: We manage the flow of information, products and money.

Our clients, leaders in a wide range of industries, rely on Arvato’s portfolio of solutions:

from telecommunications providers and utilities companies, to banks and insurance

companies, to e-commerce, IT and internet providers.

Arvato is a Bertelsmann division.

Dear readers, dear friends of Arvato,

Arvato is a high-performing, strong service provider and a

leader who provides a wide range of solutions for the most

successful and attractive companies around the world. Our

goal is to be the solution partner for our clients, and our key

business goals are to offer scalable operations, cutting-edge

solutions powered by the latest technology, and to maintain

and improve strong client relationships. The Arvato team

consists of about 70,000 people and is active in more than

40 countries around the globe, with sales at €3.8bn.

This brochure provides an overview of our business segments

and gives you a basic idea of what Arvato has on offer – as a

services provider and as an employer.

We invite you to take a look and see how we can be a partner

for you, too.

Yours sincerely,

Karin Schlautmann, Executive Vice President

Corporate Communications of Bertelsmann

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Facts and Figures

€3.838 billion business volume

≈ 70,000 employees worldwide

150 million consumers served in 30 languages

€359 million Operating EBITDA

200 publishers served by Arvato

as service provider

600 million customer interactions

> 1.1 billion shipments per year

170 million credit assessments

per year

> €3.2 billion in processed receivables

> 100,000 hours of digitization capacity

per year

40 countries

325 different payment options

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The Arvato Board

Thomas RabeChairman &

CEO Bertelsmann

Bernd HirschCFO Bertelsmann

Immanuel HermreckCHRO Bertelsmann

Rolf HellermannCFO Arvato

Thomas MackenbrockCSO Arvato

Andreas KrohnCEO Arvato

CRM Solutions

Frank SchirrmeisterCEO Arvato

SCM Solutions

Frank KebschCEO Arvato

Financial Solutions

Matthias MoellerCEO Arvato

Systems

9

Strategic Framework

Scalable operationsArvato is very strong in the operative implementation of services. The reliability

of these services must be ensured in the future as well. By bundling platforms and

systems, Arvato can benefit from economies of scale and offer clients individual

solutions more quickly.

Strong client relationshipsArvato can achieve further growth with an even more targeted client approach in sales

and marketing. Retaining top clients and expanding business relationships with them

is essential. Arvato will systematically develop medium-sized yet promising clients in

order to grow along with them.

Cutting-edge solutionsArvato invests in progressive technologies such as cloud services, big data, artificial

intelligence and robotics. The bundling of know-how in key industries will further

strengthen Arvato’s position. Within the organization, the task is to internationalize

existing solutions as comprehensively as possible.

Portfolio and cultureThese strategic priorities are supported with the ongoing analysis of our portfolio on

one hand, and the development of our culture on the other hand.

Arvato’s strategic framework builds on our Solution Groups’ strategies. It provides the direction of Arvato’s

further growth – based on even more international, even more innovative solutions.

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Arvato provides its solutions in more than 40 countries around the globe

Arvato has around 200 sites in

more than 40 countries around

the globe.

From here, our 70,000 colleagues

provide scalable solutions that

combine our deep industry and

market know-how with our ability

to ensure global delivery.

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Arvato is organized into four Solution Groups

Arvato CRM Solutions Arvato SCM Solutions Arvato Financial Solutions Arvato Systems

15

Driven by technology, differentiated by experience, powered by people

We design, deliver and differentiate customer service on behalf of some of the world’s

most respected brands. Customer service is about technology, because constantly

evolving technology is driving up customer expectations and has the power to simplify

service delivery for you. So naturally we support your customers and your need for

competitive advantage. Customer service demands experience, because service

is one of your most valuable brand assets and becoming more complex to deliver.

Differentiated by our experience, we are global, take a long-term perspective and

have know-how across the customer journey. So we’re your partner for the duration.

Above all, customer service is about people, because service is a human thing even if

it’s delivered by a robot. And it’s people that apply technology, draw on experience,

and add value. Our enterprising spirit means we’re defined by our people, who

deliver effectively in the face of the unpredictable, shape the future, and drive global

consistency as well as individual nuance. Driven by technology and differentiated by

experience, we will ensure you perform. But powered by people we will also help you

transform. More than 43,000 people at 100 locations, across 5 continents, speaking

35 languages to 600 million customers – every day.

crm.arvato.com

44,644Employees worldwide2)

1,315Million € Revenues1)

1) As of 2016

2) As of 03/2017

Arvato CRM Solutions

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13,089Employees worldwide2)

1,450Million € Revenues1)

Engineered to Perform

Arvato SCM Solutions offers supply chain management and beyond. Our focus is on

consumer-oriented industries such as automotive, banking and insurance, consumer

goods (FMCG) and fashion, healthcare, high-tech and entertainment, publishers and

telecommunications. For all of these sectors, we provide tailor-made, sustainable and

innovative solutions that meet the individual needs of our clients and enable them

growth and transformation. We rely on advanced technologies to turn omnichannel,

digital and hybrid business models into reality. Thereby we place a particular priority

on aspects such as global availability, visibility of the supply chain, automation and

digitization of processes. Our strategies for you base on deep industry know-how

and IT expertise, always taking advantage of economies of scale across industries.

Whatever you need – we find the solution. Our industry specialists, more than

14,000 employees worldwide, and not least our passion to keep inspiring our clients

and their customers, are here to make sure of it. What can we do for you?

scm.arvato.com

Arvato SCM Solutions

1) As of 2016

2) As of 03/2017

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10,417Employees worldwide2)

623Million € Revenues1)

Convenience in every transaction

Arvato Financial Solutions is synonymous with professional financial outsourcing

services centering on cash flow in all phases of the customer lifecycle. The portfolio

covers a complete range of stand-alone solutions – from fraud prevention and risk

management to invoicing and debtor management, the sale of receivables and debt

collection, as well as fully integrated end-to-end order-to-cash solutions. We leverage

deep domain expertise, global talent, technology and process engineering to design

innovative solutions with a strong focus on business outcomes. As part of this, we focus

on minimizing default rates in the business initiation phase and during the collection

process. As a result, our services also include optimizing the selection of payment

types internationally. At Arvato Financial Solutions more than 10,000 employees

manage around 10,000 clients, specializing primarily in the retail/e-commerce,

telecommunications, insurance, banking and healthcare sectors. Our aim is to make

financial transactions as convenient as possible and our philosophy is grounded in the

belief that close, long-term partnerships are the key to successful outsourcing. This

approach has turned us into Europe’s third largest integrated financial service provider.

Your one stop shop for financial services. Professional. Reliable. Efficient.

finance.arvato.com

Arvato Financial Solutions

1) As of 2016

2) As of 03/2017

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2,934Employees worldwide2)

397Million € Revenues1)

Smart IT Solutions for your digital business model

Global IT specialist Arvato Systems supports major companies through digital

transformation. Around 3,000 staff at over 25 locations deliver in-depth technology

expertise, industry knowledge and a firm focus on customer requirements. Working

as a team, we develop innovative IT solutions, transition our clients into the Cloud,

integrate digital processes and take on IT systems operation and support. Our business

relationships are personal; we work with our clients as partners, so that together we

can achieve long-term success.

We provide

• Comprehensive IT solutions for retail and media industries as well as for utility

companies and the healthcare sector

• Long-term experience in Digital Transformation

• Competence in key areas like Cloud Computing, CRM, Customer Experience,

Enterprise Information Management (BPM, ECM…), Omni-Channel- and

E-Commerce

• A broad spectrum of IT-Outsourcing and Infrastructure Services, including

Managed Services, and an according Application Management

• Strong technologies and partners, including Microsoft and SAP

it.arvato.com

Arvato Systems

1) As of 2016

2) As of 03/2017

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History

Promising ideas are the driving force behind social development. They provide

motivation and guidance, and tap undreamed-of potential. The beginnings of Arvato

can be traced back to one such visionary idea: a consistent focus on how a company

can support its clients.

The history of Arvato began more than 175 years ago, when Carl Bertelsmann opened

a lithographic printing shop in the East Westphalian town of Gütersloh. This was the

nucleus for the development of a BPO services group that today accounts for about

70,000 of Bertelsmann‘s employees. The business started by printing and later also

shipping books for Bertelsmann’s publishing companies, and then expanded to provide

services for external clients. Arvato subsequently grew larger, became involved in new

industries, developed innovative products, and expanded into other countries and

continents − until it became what it is today: a unique international service provider

that occupies a leading position in numerous market segments and serves the world‘s

most dynamic and admired companies.

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Milestones in the Company’s History

1999

The Bertelsmann division

“Druck und Industrie”

(“Printing and Industry”)

becomes Bertelsmann Arvato

The name reflects the growing

importance of the service business

for the Bertelsmann group.

2012100 million cell phones for China

Arvato consolidates its position in China

as the leading outsourcing provider in

the country’s telecoms industry.

2000Expansion of the

healthcare service business

Arvato enters the

healthcare market.

2014Expansion of integrated

e-commerce services

One of the biggest transactions in

our history: Arvato acquires major

parts of the Netrada group, a leading

e-commerce and logistics provider

for the fashion industry. On this

basis, Arvato further strengthens its

e-commerce-services growth platform.

1946Foundation of the printing

company Mohn & Co. GmbH

Reinhard Mohn founded a new

publishing and printing company

for the German market.1994

First service activities

begin in Poland

The first distribution center

in the Polish city of Poznan.

1835Founding of the publishing com-

pany Bertelsmann Verlag

The company initially publishes

Christian materials in the Protes-

tant tradition; fiction titles were

not added until much later.

1995Cooperation with Microsoft

When Windows 95 was

introduced, Microsoft decided

to launch a cooperative

venture with Bertelsmann

Marketing Services.

1972First service businesses in France

Launch of the first service businesses

in France.

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www.arvato.com/socialcloud arva.to/facebook arva.to/twitter arva.to/youtube arva.to/xing arva.to/linked-in

Further Information about Arvato

WebsiteThe Arvato website gives a clear, comprehensive presentation

of the company with its individual business units, products

and services. The website also features our latest news, facts

and figures about Arvato, and a link that enables you to

contact Arvato directly.

www.arvato.com www.bertelsmann.com/APP_iOS_ARwww.bertelsmann.com/APP_Android_ARwww.bertelsmann.com/AR

Social NetworksWe share entertaining information about Arvato on Facebook

and YouTube. In addition, our Twitter channel, grouped around

@arvato_com, provides the latest news and updates from our

company, our people and our solutions. In the Arvato Social

Cloud, you can follow all social media posts from dozens of

channels in real-time.

Bertelsmann Annual ReportOur parent company’s annual report also provides

information on Arvato’s key business developments and

consolidated financial statements. In addition to the printed

version, the Bertelsmann Annual Report is also available as

an interactive online version and as an app.

Create Your Own CareerAs a global media, services and education company with well

over 110,000 employees, Bertelsmann ranks among the top

employers on both the national and international stage. The

portal features current job openings as well as events and

news related to working and pursuing a career at Bertelsmann

and Arvato.

www.createyourowncareer.com

Visit us on Facebook, Twitter, YouTube, XING and LinkedIn!

ContactBertelsmann SE & Co. KGaA · Corporate CommunicationsCarl-Bertelsmann-Straße 270 · 33311 Gütersloh · Germanyinfo@arvato.com · www.arvato.com 08/2017