Please refer to the 2013 Group Management Report for a description of Bertelsmann’s risk management system (RMS) and the accounting-related RMS and internal control system (ICS).

Please also refer to the 2013 Group Management Report for a presentation of key risks to the Bertelsmann Group. The following significant changes have been identified as part of the risk report of June 30, 2014. Overall, after the first half-year, the same Group risks are considered material as those existing as of December 31, 2013. However, the significance of individual types of risk in terms of Bertelsmann’s future business development has changed. The risks of loss of audience and market share assessed as moderate as of December 31, 2013, have become more significant. With respect to customer-related risks, which continue to represent the most significant risk within the Group, the increase in individual risk positions is noticeable, particularly at Arvato and Be Printers.

The economic outlook in the euro zone remains subject to certain risks. In addition, geopolitical uncertainties have increased. For Bertelsmann, this primarily results in risks to businesses that depend on the advertising market.

The consequences of the tax on advertising income introduced by the Hungarian parliament in August 2014 cannot be fully predicted at present. It will inevitably have an adverse impact on the results of operations of the Hungarian television business. In addition, the possibility of further impairmentsWrite-down of intangible assets and property, plant and equipment. cannot be ruled out.

Furthermore, the strategic and operational risk position for the individual divisions and the Group remains essentially unchanged from that depicted in the 2013 Group Management Report.

Please also refer to the 2013 Group Management Report for details of the legal and regulatory risks. No significant changes have been identified.

Risks associated with the financing of the Bertelsmann Group have not changed significantly compared to 2013.

The overall risk position has increased slightly compared with the previous year. No risks endangering Bertelsmann’s continued existence were identified as of June 30, 2014, nor are there any substantial risks discernible from the current perspective that could threaten the continued existence of the Group.

The assessment of opportunities has not changed substantially compared to the information presented in the 2013 Group Management Report.