Arvato: Sights set on continued growth
Arvato, the international media and communication services subsidiary of Bertelsmann AG, has its sights set on continued growth in fiscal year 2008. "Our goal is to forge ahead with our successful development and boost our sales, earnings and workforce again this year," Rolf Buch (43), CEO of Arvato and a member of the Executive Board of Bertelsmann AG, said today in Gütersloh. "The first projects of the current fiscal year have already been successfully kicked off, and our future strategy provides a solid foundation for our positive long-term development." Buch identified three factors that form the core of his future strategy. First, three-dimensional growth – developing new services, tapping new customer segments and expanding the company’s market presence inside and outside Germany. Second, the company’s integrated service range: "Our customers want simple, all-round solutions from a single source, not parts of a jigsaw puzzle that they have to assemble themselves," the executive said. "We offer these types of package solutions. The breadth of Arvato’s capacities is unrivaled in its market." Third, the company’s four-module structure, the so-called Arvato DNA: a unique combination of innovation, customer orientation, performance and particularly employees. "Companies no longer try to stand out by means of technology, which is readily available in the market. What matters now is what employees and teams do with it." According to Buch, the combination of these factors is the basis for Arvato’s future success and continued growth.
A series of projects for this fiscal year shows that the company remains on its successful course. For example, the DeutschlandCard went live at the start of March. More than 2 million consumers are already actively using the new multi-partner reward card. "The strong interest in the DeutschlandCard shows that a new, compelling offer in this area was needed and is being readily embraced by consumers," Buch said. Arvato is also profiting from the new offer: "The DeutschlandCard is our first open customer loyalty system. It helps us expand our know-how and our portfolio of services as well as address new customers."
The PPP project "Würzburg integrates!" was officially launched at the beginning of April with the opening of a networked office for residents. "We are the only provider of this solution in Germany and are pursuing promising leads with other cities." According to Buch, such projects have highly interesting market potential for Arvato and offer a sustainable benefit for German government officials. Rolf Buch said: "Our government officials must improve their performance. And ‘Würzburg integrates!’ points to significant savings potential combined with marked benefits for residents" – because the e-government platform that Arvato has developed helps improve the quality of services, simplify processes and speed up administrative procedures.
Another growth topic relates to the expansion of the service center network. In March, Arvato took over additional locations of Vivento Customer Services (VCS) with more than 600 employees. In doing so, Arvato is continuing to markedly expand its national network of service centers this year and is reinforcing its leading position in the German market for customer communication, an area with extensive untapped potential. In spring 2007, Arvato took over the first five VCS locations. "The locations that we acquired last year have already impressed the first new customers with the quality of their services," said Buch, pointing to the positive impact of the first project. Also on the agenda is the expansion of Arvato’s market presence in southern Europe. "We see considerable potential here – just as we do in the rest of Europe – and are currently negotiating possible acquisitions with various partners."
The top priority in the printing business is the continued expansion and completion of the services chain. "Arvato print will forge ahead with its targeted transformation into an integrated provider of customized solutions related to print production." As examples for the expansion of the service portfolio Buch mentioned numerous developments in the field of pre-press services and the enhancement of the successful businesses of corporate publishing. In doing so the growth strategy of Arvato print shall systematically be pursued and the current challenges in Spain be mastered. There the sales force is being strengthened and reorganized so that it can take a more forceful approach to the market. A comprehensive cost-cutting program will be launched at the joint venture Prinovis. Overall, Buch expressed optimism: "The printing business offers significant growth potential, and we are currently observing stable to slightly rising prices." In 2007, the future direction of the storage media business was charted with the founding of Arvato digital services. According to Buch, Arvato will focus on building and extending its supply chain in Asia this year. He considers the prospects for Arvato to be very good in the Asian markets. "We are the only company in the digital services area with a solid market presence in these markets so far. Incidentally, we strengthened this presence with the acquisition of a Chinese replicator last year." Over the medium term, Buch said that Arvato might pre-produce products in Asia and then deliver them to the North American market. Arvato digital services is integrating the gnab technology into its portfolio to continue to expand its value chain and service line-up. "As a result, Arvato digital services offers its customers efficient, economical and safe digital distribution," Rolf Buch said.
"We are in good shape for the future," Buch said in conclusion. "Our three-dimensional growth strategy continues to work. We offer our customers customized package solutions from a single source and, thanks to our network, are right where they need us. With just the sort of services that they require. And with creative and dedicated employees. This is why we will continue our successful course in the future and reach our growth targets."
With more than 270 subsidiaries worldwide, Arvato is one of the biggest internationally networked media and communication services
providers. In fiscal 2007, the group of companies that is part of Bertelsmann AG generated sales of € 4.917 bn. Arvato’s worldwide subsidiaries employ more than 52,000 people. Arvato comprises the divisions Arvato print (rotogravure and offset printers in Europe and the United States), Arvato services (financial services/data management, full-service CRM services, logistics/supply chain management and direct distribution of knowledge media), Arvato digital services (e.g. replication, fulfillment, distribution/supply chain management, financial services and electronic content distribution) and Arvato systems (international provider of qualified and customized IT services) as well as empolis, a leading provider of company-wide content and knowledge management solutions, and Arvato mobile, a provider of digital entertainment content and interactive applications.
For further information about Arvato please visit our website at
For more information, contact:
Tel.: +49 (0) 5241 80-3408
Fax: +49 (0) 5241 80-3315