Reorganization of the storage media and service business Arvato Creates New Business Division

In line with Arvato’s strategy of offering integrated solutions to customers all over the world, the new division’s service chain will cover post-production, replication, fulfillment, distribution/supply chain management, financial services and electronic content distribution. This entire process chain is supported by end-to-end IT systems. The new strategy corresponds to the requirements of international customers in the Video, Audio, Games and IT/Technology sectors to increasingly buy integrated service packages. The aim is to leverage the operational strengths of the entire Arvato group even more effectively in the future.

The past few weeks have been spent working intensively on a new strategic direction for Arvato’s storage media operations. “Following detailed strategy discussions, the Arvato executive board has decided to continue running the storage media business on its own, as an integral part of Arvato,” said Rolf Buch, a member of the Arvato executive board and Arvato’s designated Chairman & CEO. “The business has an excellent international setup which offers an ideal platform for worldwide expansion.” He added that the replication of storage media will remain an important link in the Arvato service chain.

Strategic organizational changes are also being made which will enable Arvato to offer customers integrated full-service solutions in the relevant core markets: North and South America, EMEA (Europe, Middle East, Africa) and Asia. As of October 1, 2007 the companies in the Arvato storage media group, along with several Arvato services units, will be transformed into a new division named Arvato digital services. Hans-Peter Hülskötter, CEO of the new division, will primarily work from Los Angeles in immediate proximity to key customers in the Video, Audio, Games and IT/Technology sectors.

In North America, the formerly separate business lines Arvato storage media and Arvato services will be merged entirely. Axel Kruse, who currently heads Arvato services North American operations, will serve as CEO of Arvato digital services in North America. Joe Mann-Stadt will support him with the operations side of the business, in his new capacity as Chief Operation Officer (COO).

To provide the best possible service to international customers, the new structure will feature worldwide product lines, i.e. global responsibility for each industry. Hans-Peter Hülskötter will take on the management of the Video product line. Frank Schirrmeister, CEO Supply Chain Management in EMEA, heads the IT/Technology product line and Sven Deutschmann, CEO Replication and Packaging in EMEA, will be in charge of the Games and Audio product lines.

“We are fully confident that the present reorganization ideally equips us to meet our customers’ requirements and the challenges of the markets,” declared Hans-Peter Hülskötter. “Arvato digital services has a very successful future ahead, as already indicated by a number of customer responses.”


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