Setting a framework (TT Nov08 p32-33)

Bertelsmann is a large media group, mainly operating in Germany, France, England, Spain and the US. In 2007, it reported annual revenues of €18,578m and EBITDA (earnings before interest, taxes, depreciation and amortisation) of €2,467m. The treasury team sits within Bertelsmann’s corporate treasury and finance operation, alongside corporate finance, international finance and insurance. The organisation has a system of treasury review that assesses treasury reports and is responsible for the risk assessment of treasury issues, such as the calculation of value of risk and interest rates. The treasury team reports directly to the head of treasury and finance. The treasury also has a separate back office that deals with daily administration issues.