Financial Statement Release 11/02/2010 11:30
- The Sanoma Group's net sales in 2009 totalled EUR 2,767.9 (3,030.1) million,
8.7% less than in the comparable year.
- Operating profit excluding non-recurring items was EUR 229.5 (295.7) million
in 2009. Non-recurring items totalled EUR -34.1 (-59.3) million.
- In the fourth quarter, the Group net sales were EUR 733.6 (798.7) million.
Operating profit excluding non-recurring items improved to EUR 49.3 (49.0)
million.
- Fourth quarter earnings per share were EUR 0.04 (-0.39). Earnings per share
for 2009 were EUR 0.66 (0.72).
- Cash flow from operations in 2009 totalled EUR 241.8 (250.3) million. Cash
flow per share was EUR 1.50 (1.56)
- The proposed dividend is EUR 0.80 per share.
KEY INDICATORS 10‑12/ 10‑12/ Change 1‑12/ 1‑12/ Change
EUR million 2009 2008 % 2009 2008 %
Net sales 733.6 798.7 -8.2 2,767.9 3,030.1 -8.7
Operating profit excluding 49.3 49.0 0.5 229.5 295.7 -22.4
non-recurring items
% of net sales 6.7 6.1 8.3 9.8
Operating profit 32.3 -28.8 212.0 195.4 236.3 -17.3
Result for the period 8.6 -59.9 114.3 107.1 120.8 -11.4
Capital expenditure 83.4 109.9 -24.2
% of net sales 3.0 3.6
Return on investment (ROI), % 8.9 10.7
Equity ratio, % 41.4 40.0
Net gearing, % 79.4 78.5
Number of employees at the end of the period 16,723 18,453 -9.4
(FTE)
Average number of employees (FTE) 17,343 18,168 -4.5
Earnings/share, EUR 0.04 -0.39 110.2 0.66 0.72 -8.8
Cash flow from operations/share, 0.76 0.59 28.3 1.50 1.56 -3.5
EUR
Equity/share, EUR 7.36 7.59 -3.1
Dividend/share, EUR * 0.80 0.90 -11.1
Dividend/result, % * 122.0 125.1 -2.5
Market capitalisation 2,536.5 1,479.7 71.4
* Year 2009 proposal of the Board of directors
Hannu Syrjänen, President and CEO
"Considering the difficult business environment in 2009, we delivered a solid
operational result. Our EBIT excluding non-recurring items amounted to EUR 229.5
million. When the market decline started at the end of 2008, we reacted quickly
and focused on improving the efficiency of our operations. During the year, our
operating expenses excluding non-recurring costs came down 7.9%. In personnel
costs, we achieved savings of 4.5%. The efficiency improvements were clearly
visible in our fourth quarter result which improved from the comparable period
and many of the effects of the structural changes we made during the year will
first show in the 2010 figures. I am very pleased with the good level of our
cash flow and continuously solid financial position.
Even though we have seen some positive signals from the advertising in our main
markets, no fast recovery is yet in sight. Efficiency continues to be in
Sanoma's focus in 2010. At the same time, we are investing in future growth by
renewing our products and services, developing our concepts and creating new
initiatives. Online operations, one of our key areas, are expected to grow
significantly in the next few years. Transactional services, gaming platforms
and verticals are being developed both through our own innovations as well as
acquisitions. Our new innovation management system will provide further focus to
the Group's efforts in this area and provide the right tools and incentive
systems to foster more ambitious organic growth.
Our strategic goal is to be one of the leading media companies in Europe, with a
focus on sustainable growth and profitability. We continue to aim at being the
market leader in our chosen businesses and markets. Our focus areas are
magazines, news, learning solutions and online business."
Outlook for 2010
In 2010, Sanoma's net sales are expected to grow. The operating profit excluding
non-recurring items is estimated to improve slightly. In the comparable year
2009, operating profit excluding non-recurring items was EUR 229.5 million.
The outlook of Sanoma's net sales and operating profit in 2010 is affected by
the development of advertising and private consumption in the Group's countries
of operation. The current outlook is based on the assumption that the
advertising markets in the Group's operating countries are stable. The
efficiency improvements executed in 2009 will continue to have effects on
Group's results in 2010.
Net sales
In 2009, Sanoma's net sales amounted to EUR 2,767.9 (2008:
3,030.1; 2007: 2,926.3) million, 8.7% less than in the comparable year.
Excluding the effect of exchange rate changes, net sales would have been 7.0%
lower than in the comparable year. Adjusted for changes in the Group structure,
net sales in 2009 decreased by 9.1%. Net sales were at the comparable year's
level in Sanoma Entertainment. Net sales were down in other divisions, with
advertising sales in particular being affected by the general economic
situation.
Advertising sales decreased clearly and accounted for 21% (25%) of the Group's
total net sales. Online advertising sales, however, remained stable in Sanoma
Magazines and Sanoma News with Sanoma Entertainment even reporting growth. The
Group's subscription sales grew slightly. Single copy sales across the Group
fell somewhat, mostly in magazines in Russia and CEE countries. In geographical
terms, Finland accounted for 51% (49%) of net sales, with other EU countries
accounting for 46% (46%) and non-EU countries for 3% (5%).
Result
Sanoma's operating profit excluding non-recurring items in 2009 was EUR 229.5
(295.7) million or 8.3% (9.8%) of net sales. The operating profit excluding
non-recurring items in 2009 was 22.4% less than in the comparable year. The
operating profit included a total of EUR -34.1 (-59.3) million in non-recurring
items. These non-recurring expenses are related to restructuring of operations
in several divisions. In the comparable year, non-recurring items consisted of
capital gains from divestments, as well as write-downs of goodwill, immaterial
rights and inventories as well as costs associated with the restructuring of the
multi-volume book publishing business.
NON-RECURRING ITEMS 10‑12/ 10‑12/ 1‑12/ 1‑12/
EUR million 2009 2008 2009 2008
Magazines
Restructuring expenses (Magazines Belgium) -10.9 -12.4
Restructuring expenses (Magazines Netherlands) -0.1 -4.7
A gain on sale of R.C.V. Entertainment 23.5
A gain on sale of Payback Kft 7.0 7.0
Expenses on closing down a youth site and
related impairment loss -5.1 -5.1
Impairment loss of immaterial
rights and goodwill -78.6 -78.6
News
Expenses related to the efficiency programme -8.4
Learning & Literature
Restructuring expenses -2.4 -3.9
Expense related to the sale of children's magazines -1.1
Inventory write-downs and
restructuring expenses -1.1 -7.6
Trade
Restucturing expenses -3.6 -3.6
Other companies
A gain on sale of a land area 1.5
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NON-RECURRING ITEMS IN OPERATING PROFIT -17.0 -77.8 -34.1 -59.3
Impairment losses on loans and other receivables
and available-for-sale investments -3.7 -8.7
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NON-RECURRING ITEMS IN FINANCIAL ITEMS -3.7 -8.7
The Group's operating profit was EUR 195.4 (2008: 236.3; 2007: 343.8) million or
7.1 (2008: 7.8%; 2007: 11.7%) of net sales. Operating profit grew in Sanoma
Entertainment, where all business units developed favourably. In other
divisions, operating profit decreased mainly as a result of lower sales and
restructuring expenses.
Sanoma's net financial items totalled EUR -30.1 (-51.0) million. Financial
income amounted to EUR 22.5 (18.9) million, of which exchange rate gains were
EUR 15.0 (6.0) million. Financial expenses amounted to EUR 52.6 (69.9) million.
Interest expenses amounted to EUR 25.3 (56.3) million and exchange rate losses
to EUR 16.2 (12.0) million. The refined financing structure and lower reference
rates clearly decreased the Group's interest expenses in 2009. Financial
expenses also included a write-down of the shares in the e-commerce company
Fruugo, amounting to EUR 5.0 million and a write-down of loan receivables
totalling EUR 3.5 million connected with a divestment in 2005.
The result before taxes was EUR 161.4 (190.3) million. Sanoma's effective tax
rate was clearly lower than in the comparable year. Earnings per share in 2009
were EUR 0.66 (0.72). The result for the period totalled EUR 107.1 (120.8)
million.
Efficiency improvements
In 2009, Sanoma completed a large number of efficiency improvement programmes to
strengthen its competitive position as well as safeguard profitability and cash
flows. The non-recurring costs of the restructuring measures in 2009 amount to
EUR 34.1 (91.3) million.
Sanoma News redesigned its editorial and marketing processes to increase
co-operation between print and online operations. Sanoma Magazines Belgium
decided to focus more on its key titles and strengthening relationships with its
readers. Sanoma Magazines Netherlands has gathered all its print operations
under Sanoma Uitgevers and all online operations under Sanoma Digital The
Netherlands. The Dutch direct marketing organisation was closed down since
direct marketing has become less important as a marketing channel. In Estonia,
Sanoma Trade is reorganising its businesses. This reorganisation aims to ensure
its competitiveness in the future, improve the efficiency of operations, and
more importantly, enhance co-operation in marketing and business development. In
Sanoma Learning & Literature, restructuring in multi-volume book publishing was
finalised. The integration of operations in language services continues.
In addition to these larger programmes, Sanoma also reduced personnel and
carried out short-term cost-saving programmes in several other business units
either as a result of the weakened economic outlook or related to restructuring
initiated by changing business needs in, for example, Russia, the Czech Republic
and Finland. In 2009, the Group reduced its total expenses excluding
non-recurring items by 7.9% with both cost of sales and other operating expenses
decreasing more than the net sales. At the end of December, Sanoma had over
1,700 employees (FTE) less than at the year-end 2008, corresponding to a
reduction of 9.4% in work force. Personnel costs, excluding the non-recurring
items, were down by 4.5% from the 2008 level. The effects of personnel
reductions of Sanoma News and Sanoma Magazines Belgium, for example, will become
more visible during the first half of 2010.
Balance sheet and financial position
At the end of the year, the consolidated balance sheet totalled EUR 3,106.3
(3,278.7) million. Sanoma successfully maintained a good cash flow and the
Group's cash flow from operations in 2009 totalled EUR 241.8 (250.3) million.
Cash flow per share was EUR 1.50 (1.56). The weaker operational result was
offset by effective working capital management and clearly lower financial items
and taxes paid.
There were no significant changes in the Group's financial position during the
year. At the end of December, Sanoma's equity ratio was 41.4% (40.0%). Net
gearing increased to 79.4% (78.5%). Equity totalled EUR 1,206.6 (1,237.1)
million. Return on equity (ROE) was 9.2% (2008: 9.1%; 2007: 18.6%), and the
return on investment (ROI) was 8.9% (10.7%). Interest-bearing liabilities
decreased to EUR 1,017.7 (1,082.6) million and interest-bearing net debt to EUR
958.1 (971.6) million. At the end of December, the Group's cash and cash
equivalents totalled EUR 59.7 (110.9) million. Sanoma's net debt/EBITDA ratio
was 2.6 at the end of 2009, in line with the Group's target to keep the ratio
below 3.5.
Sanoma's financial position is stable. The existing credit facilities, such as
the syndicated, long-term credit facility of EUR 802 million, cover all Sanoma's
financing needs and Sanoma has no need for material refinance in the near
future. Sanoma Corporation does not have any other significant agreements
covered by the statutory obligation to disclose. The Group has, within the scope
of normal business operations, agreements or agreements as a whole containing a
standard change-of-control clause.
Investments, acquisitions and divestments
Investments in tangible and intangible assets totalled EUR 83.4 (109.9) million
in 2009, and consisted mainly of ICT systems as well as replacement investments
and renovations. Sanoma has a policy to keep the annual capital expenditure,
excluding M&A, below EUR 100 million. Sanoma's business acquisitions in 2009
totalled EUR 6.7 (190.7) million. R&D expenditure was recorded at EUR 1.5 (4.1)
million or 0.1% (0.1%) of net sales. R&D expenditure does not include costs
related to launches of new products and services or renewal of existing ones,
which are considered normal portfolio management and incurred as costs.
There were no significant transactions during the year. In the comparable year,
Sanoma Magazines divested the Dutch movie distribution company R.C.V.
Entertainment and a capital gain of EUR 23.5 million was recorded for the
transaction. On 11 March 2008, Sanoma Learning & Literature completed its
acquisition of the Polish educational publisher Nowa Era.
SANOMA MAGAZINES
Sanoma Magazines, operating in 13 European countries, is a leading publisher of
magazines and has a strong presence in digital media. The company actively
reaches out to an audience of 290 million consumers at every life stage, and
aims to strengthen its market leader positions in each of the markets it
operates in.
- Sanoma Magazines' strong brands were able to outperform market development in
its key markets.
- Sanoma Magazines improved its result in the fourth quarter with EBIT excluding
non-recurring items being 6.4% higher than in the comparable period.
- The full-year result was strongly affected by the decreasing advertising
sales, in particular in Sanoma Magazines International.
Key indicators 10‑12/ 10‑12/ Change 1‑12/ 1‑12/ Change
EUR million 2009 2008 % 2009 2008 %
Net sales 307.1 338.9 -9.4 1,111.2 1,246.8 -10.9
Operating profit excluding 38.4 36.1 6.4 113.4 138.9 -18.4
non-recurring items *
% of net sales 12.5 10.6 10.2 11.1
Operating profit 27.4 -40.6 167.4 96.3 85.7 12.4
Capital expenditure 24.4 26.8 -9.1
Return on investment (ROI), % 7.9 7.2
Number of employees at the end of the period 5,191 5,900 -12.0
(FTE)
Average number of employees (FTE) 5,452 5,731 -4.9
* In 2009, the non-recurring items included in the second quarter EUR 1.3
million, in the third quarter EUR 0.2 million and in the fourth quarter EUR
10,9 million Sanoma Magazines Belgium's restructuring expenses and in the third
quarter EUR 4.6 million and in the fouth quarter EUR 0,1 million Sanoma
Magazines Netherlands' restructuring expenses. In 2008, the non-recurring items
included EUR 23.5 million capital gain from the divestment of movie distributor
R.C.V. Entertainment in the first quarter as well as EUR 7.0 million capital
gain from sales of online assets and EUR 83.7 million impairment loss on
goodwill and immaterial rights in the fourth quarter.
Operational indicators * 1‑12/ 1‑12/
2009 2008
Number of magazines published 295 344
Magazine copies sold, thousands 372,995 404,750
Advertising pages sold 54,108 70,367
* Including joint ventures
Sanoma Magazines' net sales in 2009 amounted to EUR 1,111.2 (1,246.8) million,
10.9% less than in the comparable year. The general economic situation affected
sales in all operating countries with Sanoma Magazines International's net sales
being impacted the most. The Division's net sales adjusted for changes in the
Group structure were down by 11.3%. Of the Division's net sales, 18% (16%) came
from Finland. In October-December, the Division's net sales decreased by 9.4% to
EUR 307.1 (338.9) million with advertising sales in the Netherlands, Belgium and
Finland showing slight improvement during the last months of the year.
The Division's advertising sales decreased by 23% in 2009 and represented 29%
(33%) of net sales. The economic downturn hit advertising revenues in all
markets, in particular Sanoma Magazines International's advertising sales. The
Division's online advertising sales were at the comparable year's level.
Sanoma Magazines' circulation sales decreased by 3% and represented 60% (55%) of
the Division's net sales. Subscription sales increased slightly in 2009 due to
good development in the Netherlands, Belgium and Finland. Single copy sales
declined, mostly in the CEE countries.
Sanoma Magazines Netherlands' net sales amounted to EUR 493.2 (515.7) million,
due to weaker print advertising sales than in 2008. According to Nielsen Media
Research, the consumer magazine advertising market in the Netherlands decreased
by 16% in 2009. However, with its strong brands Sanoma Magazines Netherlands was
able to outperform the market development both in print and online advertising
and increase its market share. New assets, acquired in the second half of 2008,
contributed to Sanoma Magazines Netherlands' online advertising growth of 6%. In
total, advertising sales represented 27% (29%) of Sanoma Magazines Netherlands'
net sales. Sanoma Magazines Netherlands also improved its market position in the
readers' market. Its circulation revenues were at the comparable year's level,
even though some titles were discontinued during the year. Subscription sales in
particular developed positively with increased sales of core brands offsetting
the changes in the portfolio. During the year, Sanoma Magazines Netherlands
closed down or sold 11 magazines, and launched two magazines as well as nine
online services.
Sanoma Magazines International's net sales were EUR 211.3 (306.7) million. The
economic downturn affected sales strongly in all countries. The reported net
sales were also substantially impacted by negative translation effects,
especially of the Russian rouble and Hungarian forint. Advertising sales,
representing 49% (56%) of Sanoma Magazines International's net sales, decreased
especially in Russia, Hungary and Ukraine. Sanoma Magazines International
reacted quickly to changing market conditions at the beginning of the year and
discontinued 21 unprofitable magazine titles, which also lowered advertising
sales, in particular in the Czech Republic. Circulation sales were clearly below
the comparable year. This is also partly attributable to the reduced number of
magazines published and, in some cases, the number of issues. The publication
frequency of various titles has been adjusted in order to save costs. Sanoma
Magazines International launched one magazine in 2009 and strengthened its
leading position in the Hungarian online market through the acquisition of the
comparison site Olcsobbat.hu. Sanoma Magazines International also improved its
market share in Romania and is now the leading magazine publisher in the
country.
Net sales at Sanoma Magazines Belgium totalled EUR 212.3 (223.2) million. In the
readers' market, Sanoma Magazines Belgium outperformed the market development.
Its circulation sales grew slightly due to increased subscription sales. In line
with the market development, advertising sales were below the comparable period
and represented 25% (27%) of net sales. During the year, Sanoma Magazines
Belgium renewed its strategy and started to redesign its organisation to better
use the opportunities of the changing media environment.
Sanoma Magazines Finland's net sales amounted to EUR 198.8 (205.6) million.
Circulation sales in Finland held up well but advertising sales were down from
the comparable year. According to TNS Gallup Adex, advertising in consumer
magazines in Finland decreased by 21% in 2009 and the volume of the single copy
market for magazines by 7%. Advertising sales represented 13% (15%) of Sanoma
Magazines Finland's net sales. Sanoma Magazines Finland outperformed the market
development both in advertising and the readers' market and has increased its
market shares. In particular the key titles, such as the women's weekly Me
Naiset and the glossy Gloria together with its brand extensions increased their
readership.
Sanoma Magazines' investments in tangible and intangible assets totalled EUR
24.4 (26.8) million and consisted mainly of ICT investments. The most
significant acquisition in 2009 was that of Hungarian SELKO kft, which operates
the comparison site Olcsobbat.hu. In the comparable year, the major acquisitions
were the majority shareholding in magazine publisher Mood for Magazines and the
acquisitions of Netinfo and European Autotrader.
Sanoma Magazines' operating profit excluding non-recurring items in 2009 was
EUR 113.4 (138.9) million, a decrease of 18.4% from the comparable year.
Decreasing advertising sales affected results in all businesses, in particular
in Sanoma Magazines International and also in Sanoma Magazines Netherlands.
Operating profit improved slightly in Finland. Non-recurring items totalled EUR
-17.1 (-53.2) million and were related to restructuring in Sanoma Magazines
Belgium and the direct marketing organisation in the Netherlands. In the
comparable year, the non-recurring items consisted of a recognition of
impairment and write-downs totalling EUR 83.7 million and capital gains of EUR
30.5 million related to the divestments of R.C.V. Entertainment and some online
assets. Operating profit in 2009 amounted to EUR 96.3 (85.7) million. The
Division initiated several programmes to improve the profitability of its
business units and in October-December, Sanoma Magazines improved its operating
profit excluding non-recurring items by 6.4% to EUR 38.4 (36.1) million.
Sanoma Magazines continues to develop its magazine portfolio with a special
focus on its key titles in each operating country. Sanoma Magazines is investing
in strengthening its market positions, and wants to become stronger in digital
media. The growth in digital operations can be done by leveraging existing
assets and will be speeded up by organisational changes made in 2009. At the
same time Sanoma Magazines continues to strongly focus on improving efficiency
and saving costs.
In 2010, Sanoma Magazines' net sales are expected to grow slightly and it is
estimated that operating profit excluding non-recurring items will be at the
previous year's level.
SANOMA NEWS
Sanoma News is the leading newspaper publisher in Finland and its printed and
digital products have a strong presence in the lives of Finns. In addition to
Helsingin Sanomat, the largest daily in the Nordic region, Sanoma News publishes
other national and regional newspapers and it is also one of the most
significant digital media players in Finland.
- Sanoma News improved its result in the fourth quarter and posted 14.5% higher
EBIT than in the comparable period. Total savings of over EUR 30 million were
achieved during 2009.
- In 2009, the tabloidIlta-Sanomat was able to reverse its market share
development. Online visitors and advertising sales continued to grow
significantly.
- The total reach ofHelsingin Sanomat is at an all-time-high due to increasing
print readership and growing online audience.
- After the review period, Sanoma News focused its operations by divesting
picture agency Lehtikuva.
Key indicators 10‑12/ 10‑12/ Change 1‑12/ 1‑12/ Change
EUR million 2009 2008 % 2009 2008 %
Net sales 112.9 119.2 -5.4 428.9 474.7 -9.7
Operating profit excluding 10.8 9.4 14.5 40.6 57.3 -29.2
non-recurring items *
% of net sales 9.6 7.9 9.5 12.1
Operating profit 10.8 9.4 14.5 32.2 57.3 -43.9
Capital expenditure 10.6 19.6 -46.0
Return on investment (ROI), % 12.1 19.2
Number of employees at the end of the period (FTE) 2,306 2,449 -5.8
Average number of employees (FTE) 2,399 2,491 -3.7
* In 2009, the non-recurring items included in the first quarter EUR 2.3 million
and in the second quarter EUR 6.1 million expenses related to the efficiency
programme.
Operational indicators 1‑12/ 1‑12/
2009 2008
Distribution of free sheets, millions 74.8 92.4
1‑12/ 1‑12/
Audited circulation 2009 2008
Helsingin Sanomat 397,838 412,421
Ilta-Sanomat 153,051 161,615
10‑12/ 10‑12/
Online services, unique visitors, weekly 2009 2008
Iltasanomat.fi 1,827,379 1,548,421
HS.fi 1,280,225 1,096,222
Huuto.net 462,347 452,712
Oikotie.fi 374,397 288,133
Taloussanomat.fi 508,089 418,740
Keltainenporssi.fi 169,441 175,199
Sanoma News' net sales in 2009 totalled EUR 428.9 (474.7) million, a decrease of
9.7% from the comparable year. Most of the decrease came from the Helsingin
Sanomat business unit, where advertising sales declined significantly. Adjusted
for changes in the Group structure, net sales decreased by 10.1%. In
October-December, some improvement was seen in advertising and single copy
sales. The Division's net sales were down by 5.4%, clearly less than in the
previous quarters, and amounted to EUR 112.9 (119.2) million.
The advertising market in Finland in 2009 was significantly below the comparable
year. The last months of the year showed small positive signs, but according to
TNS Gallup Adex, newspaper advertising in Finland decreased by 22% in
January-December. Job advertising in Finland decreased by 51% and real estate
advertising by 35%. Advertising in free sheets was down by 19%. Online
advertising included in the statistics also decreased by 4%.
Sanoma News' advertising sales followed the general advertising environment, and
decreased by 22% during the year, with print classified advertising in
particular affecting sales. However, November and December sales showed clear
progress. The Division's online advertising sales performed clearly better than
the market and were almost at the comparable year's level. Advertising sales
represented 45% (53%) of the Division's net sales in 2009.
The Finnish tabloid market has been affected by structural migration to online
and declined by 6% in 2009. However, the decrease in circulation of Ilta-Sanomat
has slowed down markedly with the fourth quarter showing a level close to the
comparable year. With the amount of online visitors increasing constantly, the
total reach of Sanoma News improved during the year. The Division's circulation
sales grew by 3% with both subscription and single copy sales increasing.
Circulation sales accounted for 44% (38%) of the Division's net sales.
The Helsingin Sanomat business unit's net sales totalled EUR 240.3 (279.5)
million. Circulation sales increased from the comparable year due to new hybrid
subscription models combining print and digital products and increases in
subscription prices. In November, the renewed daily newspaper was launched and
the renewed product and promotional measures offset the circulation decrease.
This positive development is expected to continue in 2010. The number of readers
of the Helsingin Sanomat daily newspaper increased according to the latest
National Readership Survey. Together with its growing online audience, the total
reach of Helsingin Sanomat is at an all-time high. Advertising sales of the
business unit were strongly affected by the overall economic situation. Job
advertising in the daily print edition of Helsingin Sanomat was 52% lower than
in 2008 and real estate advertising 53%. In total, advertising sales represented
53% (62%) of the business unit's net sales.
Net sales of the Ilta-Sanomat business unit were almost at the comparable year's
level and amounted to EUR 78.2 (80.4) million. Ilta-Sanomat had a 57.1% (57.1%)
share of the tabloid market. The development of the newsstand market in the last
quarter of 2009 was considerably better than in January-September. The positive
signs in circulation development together with the content revamp in 2008, and
successful marketing efforts in 2009 enabled Ilta-Sanomat to reverse its market
share development. Online advertising sales of the business unit were 28% above
the comparable year. However, the print advertising sales declined and in total,
advertising sales represented 24% (31%) of the business unit's net sales in
2009.
Net sales from other publishing decreased to EUR 91.8 (100.9) million due to
lower advertising revenues in regional papers in particular. However, the
circulation sales of regional papers grew and the number of readers of
Etelä-Saimaa increased markedly. In the Sanoma Kaupunkilehdet business unit for
free sheets net sales decreased due to the merging of the Metro and Uutislehti
100 titles in autumn 2008. In 2009, Sanoma Kaupunkilehdet gained market share.
The Sanoma Digital Finland business unit's net sales were at the comparable
year's level and its advertising sales outperformed the market, in particular in
the second half of the year.
After the review period, Sanoma News decided to sell the picture agency
Lehtikuva to the Finnish News Agency (STT). The purchase price will be partly
paid by means of a share issue directed at Sanoma News. Following the
transaction, Sanoma News' holding in STT will increase from 23.1 to 34.3%. The
deal is subject to the approval by STT's Annual General Meeting and is expected
to be closed at the end of February. Sanoma News will book a non-recurring gain
of some millions on the sale in its 2010 results.
Net sales from other businesses, mainly comprising internal billing, were EUR
143.7 (150.1) million. Net sales decreased due to fewer internal printing jobs.
External printing services developed well and grew by 17% from the comparable
year.
In 2009, Sanoma News' investments in tangible and intangible assets totalled EUR
10.6 (19.6) million, and consisted mainly of investments in digital business and
reader-customer management system. There were no significant acquisitions in
2009. The most significant transaction of the comparable year was the
acquisition of a majority holding in Suorakanava.
In 2009, Sanoma News' operating profit excluding non-recurring items was
EUR 40.6 (57.3) million, 29.2% less than in the comparable year. The
non-recurring items included in the operating profit totalled EUR -8.4 (0.0)
million and consisted of expenses related to the efficiency programme. Operating
profit including the non-recurring items totalled EUR 32.2 (57.3) million.
Efficiency improvements and cost-savings offset partly the effects of decreased
advertising sales, but operating profits were below the comparable year in all
reported businesses, except in the Ilta-Sanomat business unit where the result
improved. The effects of the efficiency improvements became more visible towards
the end of the year and in October-December Sanoma News' operating profit
excluding non-recurring items increased by 14.5% to EUR 10.8 (9.4) million.
Sanoma News will continue the planned development of its printed products and
digital services. The company has also decided to invest in a new
reader-customer management system to support, among other actions, product
development opportunities for newspapers in the multimedia environment. In 2010
the media advertising market continues to be challenging and structural changes
in the market continue. Sanoma News will therefore continue its efforts to
reshape its organisation, adapt its operations to the lower revenue level and
find new revenue sources.
In 2010, Sanoma News' net sales are expected to be at the previous year's level
and operating profit excluding non-recurring items is estimated to improve
slightly.
SANOMA ENTERTAINMENT
Sanoma Entertainment offers entertaining experiences on television, radio and
online. Sanoma Entertainment's business units include Nelonen Media, which
focuses on broadcast operations, and Welho, Finland's largest cable television
operator. The Division's newest business unit is Sanoma Games, which
concentrates on online casual gaming.
- Sanoma Entertainment's operating profit in 2009 grew by 20% with all
businesses improving their results.
- Nelonen Media's viewing and listening shares developed positively. In the
fourth quarter, the TV channels' commercial viewing grew by four percentage
points in its main target group.
- Welho increased the number of both its broadband and pay TV subscribers.
- Nelonen Sport Pro, Finland's most diversified sports channel was launched in
February 2010.
Key indicators 10‑12/ 10‑12/ Change 1‑12/ 1‑12/ Change
EUR million 2009 2008 % 2009 2008 %
Net sales 41.1 41.0 0.3 157.1 157.1 0.0
Operating profit excluding 3.9 4.1 -4.0 20.7 17.3 19.8
non-recurring items
% of net sales 9.5 10.0 13.2 11.0
Operating profit 3.9 4.1 -4.0 20.7 17.3 19.8
Capital expenditure 9.3 13.5 -31.3
Return on investment (ROI), % 18.3 15.8
Number of employees at the end of the period (FTE) 458 488 -6.1
Average number of employees (FTE) 469 482 -2.6
Operational indicators 1‑12/ 1‑12/
Thousands 2009 2008
TV channels' share of Finnish TV advertising 32.6% 29.5%
TV channels' national commercial viewing share 29.8% 29.6%
TV channels' national viewing share 14.8% 14.1%
Number of connected households (31 Dec) 326 323
Number of pay TV customers (31 Dec) 76 68
Number of broadband internet connections (31 Dec) 116 105
Sanoma Entertainment's net sales in 2009 were at the comparable year's level and
amounted to EUR 157.1 (157.1) million. In addition, net sales adjusted for
changes in the Group structure remained stable. Advertising sales accounted for
49% (52%) of Sanoma Entertainment's net sales. In October-December, net sales
were EUR 41.1 (41.0) million.
Broadcast operation's net sales totalled EUR 88.1 (88.9) million, while the
Finnish TV advertising market shrank by 12% in 2009 according to TNS Gallup
Adex. Nelonen Media's multichannel strategy in TV operations has resulted in the
increase of its market share to 32.6% (29.5%). New targeted TV channels,
national radio stations and online TV all increased their advertising sales.
Nelonen Media's lifestyle channel Liv, launched in February 2009, started
broadcasts on the terrestrial network in December, which will further improve
the good viewing shares the channel achieved during 2009. Other TV channels also
posted good viewing shares and Nelonen Media's commercial viewing share in 2009
reached 33.7% in the target group of 10-44 year olds. In the fourth quarter, the
viewing share grew by four percentage points. The online TV service Ruutu.fi,
launched in June 2009, has rapidly become very popular. In December, Nelonen
Media announced that it will launch new sports channels in February 2010. The
pay TV channel Nelonen Sport Pro will be a co-operation with Viasat.
According to the Association of Finnish Broadcasters, national radio advertising
decreased by 1% in 2009. Nelonen Media increased its share of national radio
advertising to 14%. The repositioning of Radio Aalto in August increased the
channel's weekly listeners significantly. Radio Aalto is now reaching its target
group well. Radio Rock has also improved its listening share and increased its
advertising sales.
Net sales from other operations were EUR 70.4 (69.4) million and include cable
and broadband operator Welho and Sanoma Games, the Division's emerging online
gaming business unit. Welho's fast and easy-to use broadband services together
with rewarded customer service were the key to increasing the number of fixed
broadband subscribers in 2009. For the fourth year in a row, Welho received the
most points in the customer satisfaction survey for the Finnish broadband
operators.
Welho has also actively marketed its pay TV services. This, together with the
September launch of Welho Mix, a pay TV channel package offering extensive
customisation, enabled Welho to grow its customer base in the fourth quarter. In
December, Welho started 3DTV test distribution among the first players in the
world. Sanoma Games expanded internationally by launching a fantasy sports game
with the Swedish Hockey League Elitserien in October. Online gaming is one of
the spear heads of the Group's online strategy.
Sanoma Entertainment's investments in tangible and intangible assets totalled
EUR 9.3 (13.5) million, most of which was allocated to the development of
Welho's cable network and services. There were no major acquisitions in 2009 or
the comparable year.
Sanoma Entertainment's operating profit increased by 19.8% in 2009, totalling
EUR 20.7 (17.3) million. The operating profit did not include non-recurring
items. Operating profit improved both in broadcasting and other operations. The
increase was driven by lower expenses in general and cost-saving measures. In
October-December, Sanoma Entertainment invested in increasing customer base and
viewing shares for the future and as a result, the operating profit amounted to
EUR 3.9 (4.1) million, 4.0% less than in the comparable period.
Sanoma Entertainment focuses on developing its television and broadband services
as well as its online gaming operations. In addition, Sanoma Entertainment
continuously refines its processes and service offering to better meet the needs
of its customers and to improve its efficiency.
In 2010, Sanoma Entertainment's net sales and operating profit excluding
non-recurring items are expected to be at the previous year's level.
SANOMA LEARNING & LITERATURE
Sanoma Learning & Literature, operating in 10 countries, is a leading European
provider of learning materials and solutions in print and digital format. The
Division has growing international language service operations and is also the
leading general literature publisher in Finland.
- Learning performed well in 2009, with market positions strengthening in
Belgium and Poland.
- Sales of language services and training were clearly affected by the economic
environment.
- Finnish multi-volume book publishing was restructured in December and new
printing activities were combined in January 2010.
- Sanoma Learning & Literature improved its result in the fourth quarter from
the comparable period's level.
Key indicators 10‑12/ 10‑12/ Change 1‑12/ 1‑12/ Change
EUR million 2009 2008 % 2009 2008 %
Net sales 64.7 88.0 -26.5 345.1 390.0 -11.5
Operating profit excluding -10.4 -11.6 10.5 43.5 53.2 -18.3
non-recurring items *
% of net sales -16.1 -13.2 12.6 13.6
Operating profit -12.8 -12.7 -0.6 38.5 45.6 -15.7
Capital expenditure 13.1 15.6 -16.2
Return on investment (ROI), % 7.2 9.6
Number of employees at the end of the period (FTE) 2,745 2,908 -5.6
Average number of employees (FTE) 2,780 2,737 1.6
*In 2009, the non-recurring items included in the third quarter EUR 1.5 million
and in the fourth quarter EUR 2,4 million restructuring expenses and in the
third quarter EUR 1.1 million expenses related to the sale of children's
magazines. In 2008, the non-recurring items included EUR 6.5 million of
write-downs and restructuring costs in the multi-volume and year book publishing
in the third quarter and EUR 1.1 million restructuring costs in the fourth
quarter.
Operational indicators 1‑12/ 1‑12/
2009 2008
Learning
Number of new titles published, books 1,470 1,539
Number of new titles published, digital products 346 411
Literature and other businesses
Number of new titles published, books 400 443
Number of new titles published, digital products 102 100
Books sold, millions 35.6 33.5
Sanoma Learning & Literature's net sales in 2009 amounted to EUR 345.1 (390.0)
million, a decrease of 11.5% from the comparable year, coming mainly from the
negative translation effect of the Polish zloty and the Hungarian forint and the
effect of incidental government tenders in Young Digital Planet's (YDP)
e-learning sales in 2008. Net sales adjusted for changes in the Group structure
decreased by 13.7%. A total of 62% (62%) of the Division's net sales came from
outside Finland. In October-December, the Division's net sales were EUR 64.7
(88.0) million, a decrease of 26.5% mainly due to decreasing sales of language
services and a decrease in the number of projects through government tenders in
the sales of YDP compared to 2008.
Net sales in learning totalled EUR 239.1 (273.3) million. In the Netherlands net
sales were somewhat below the comparable year's level due to the divestment of
the consumer business and the effects of the downturn in the economy on adjacent
business. Net sales in Finland decreased due to the economic situation affecting
the sales of business training and books. The sales of learning materials and
solutions grew in 2009, although upper secondary sales were under pressure
because of increasing re-use of textbooks. Net sales grew clearly in Belgium,
where Van In's learning materials and solutions were successful in all segments,
in particular new products in primary education sold well. Nowa Era in Poland
was very successful in the material reform and has improved its market share
significantly in secondary education and posted increased net sales. In Hungary,
the sales of learning materials and solutions were at the comparable year's
level, but total net sales were impacted by a severe decrease of sales in the
business training segment. YDP's sales in 2008 were characterized by incidental
government tenders. In 2009 YDP sales were lower but consisted mostly of export
sales of own products.
Net sales in language services were EUR 27.5 (28.8) million. Sales of language
services have been strongly affected by the general economic situation. The
decrease in net sales was partly offset by the new operations acquired in 2008.
The language service business unit has reviewed its processes in 2009 and is now
focusing on integrating its country organisations in order to build an efficient
and distinctive language service provider in the Nordic market.
Net sales in literature and other businesses were EUR 88.9 (101.2) million. In
Finland, the general literature market in 2009 continued to slow down, but WSOY
performed relatively well in the market. Net sales in multi-volume and year-book
publishing are markedly lower than in the comparable year. The Division
downscaled its Nordic multi-volume operations in 2008 and the Finnish
organisation in 2009. Sales were down in book printing, where the market has had
considerable overcapacity. WS Bookwell reinforced its position by acquiring the
assets and business of Gummerus Printing in December, consolidating its
operations and downscaling personnel at the beginning of 2010.
Sanoma Learning & Literature's investments in tangible and intangible assets
totalled EUR 13.1 (15.6) million. They comprised ICT investments, among others.
The most significant transactions were the acquisition of the Belgian Wees
Wegwijs, specialised in publishing road safety books, and the acquisition of the
Finnish book printer Gummerus Printing. In the comparable period, the most
significant acquisitions included that of the Polish educational publisher Nowa
Era and the Swedish language service provider Interverbum.
The Division's operating profit excluding non-recurring items in 2009 amounted
to EUR 43.5 (53.2) million, 18.3% less than in the comparable year. Currency
fluctuations and the result decrease in language service operations, where the
economic downturn has affected sales considerably, explain most of the decrease
in the Division's result. In addition to negative exchange rate developments,
operating profit in learning was affected by the negative impact of the
consolidation of Nowa Era's seasonal losses in the first quarter. The
operational result of learning was up in most countries. The result in
literature and other businesses improved. Cost-savings partly offset the effect
that lower sales have had on profits. The non-recurring items totalled EUR -5.0
(-7.6) million and were related to the restructuring of unprofitable units both
in 2009 and in 2008. Operating profit including non-recurring items totalled EUR
38.5 (45.6) million. In October-December, the Division's operating loss
excluding non-recurring items was EUR 10.4 (11.6) million, 10.5% less than in
the comparable period. The improvement came from increased efficiency in
learning as well as in literature and other businesses.
Sanoma Learning & Literature continues to focus on further internationalising
its learning business, expanding language services and maintaining market
leadership in Finnish general literature publishing. At the same time, the
Division will continue to restructure its operations. Customers are increasingly
looking at customised solutions both in learning and language services. Sanoma
Learning & Literature is well positioned to offer these and can gain efficiency
from developing platforms to be used in several markets.
In 2010, it is estimated that the net sales and operating profit excluding
non-recurring items of Sanoma Learning & Literature will increase somewhat from
the previous year's level.
SANOMA TRADE
Retail specialist Sanoma Trade's strengths are a thorough understanding of
customers' needs and solid concepts. Sanoma Trade serves its customers in 230
million annual sales contacts at kiosks, bookstores and movie theatres.
Operating in eight countries, trade services (previously press distribution) is
a strong link between publishers and retailers.
- Movie operations had another record breaking year in Finland: movie admissions
increased by 4.3% to over 5 million visits and box-office revenues reached an
all-time high.
- The results in business in Finland and in the Netherlands were at the
comparable year's level despite difficult market conditions.
- The Baltic as well as the Russian and Romanian businesses were strongly
affected by the recession.
Key indicators 10‑12/ 10‑12/ Change 1‑12/ 1‑12/ Change
EUR million 2009 2008 % 2009 2008 %
Net sales 235.3 239.3 -1.7 827.8 866.6 -4.5
Operating profit excluding 10.3 14.7 -30.3 27.6 45.1 -38.8
non-recurring items*
% of net sales 4.4 6.2 3.3 5.2
Operating profit 6.7 14.7 -54.7 24.0 45.1 -46.8
Capital expenditure 25.5 33.8 -24.5
Return on investment (ROI), % 8.2 16.5
Number of employees at the end of the period (FTE) 5,943 6,626 -10.3
Average number of employees (FTE) 6,164 6,633 -7.1
* In 2009, the non-recurring items included in the fourth quarter EUR 3,6
million restructuring expenses.
Operational indicators 1‑12/ 1‑12/
Thousands 2009 2008
Customer volume in kiosk operations 194,692 212,171
Customer volume in bookstores 7,239 7,484
Customer volume in movie theatres 9,501 10,192
Number of copies sold (press distribution) 350,186 383,289
Sanoma Trade's net sales in 2009 totalled EUR 827.8 (866.6) million, 4.5% less
than in the comparable year. Net sales of kiosk operations were at the
comparable year's level. Most of the decrease in the Division's net sales came
from trade services and bookstores. Net sales adjusted for changes in the Group
structure decreased by 4.3%. Of Sanoma Trade's net sales, 32% (33%) came from
outside Finland. In October-December, the Division's net sales were down by only
1.7% and totalled EUR 235.3 (239.3) million, with kiosk sales growing from the
comparable period.
Net sales from kiosk operations amounted to EUR 410.9 (409.4) million. Kiosk
sales in Finland were in line with the 2008 level. Net sales increased by 16% in
Lithuania. Sales in the new operations in Romania also grew. In Estonia, Latvia
and Russia, kiosk sales were down. During the year, Sanoma Trade closed down
over 100 loss-making kiosks, mostly in Latvia and Lithuania. In Finland, the
first pilot stores testing a number of new R-kiosk concepts were launched in
November. In Russia, Sanoma Trade has decided to focus its kiosk operations to
the Moscow region.
Net sales from trade services were EUR 222.2 (241.5) million. With all European
markets faced with declines in press distribution volumes, net sales in the
Division's trade services developed satisfactorily and outperformed the markets
in many countries. In Finland, the sales of tabloids showed some positive signs
at the end of the year. In the Netherlands, newsstand sales began to grow in the
second half of 2009. Cumulatively, however, press distribution volumes and net
sales were down. In the Baltic markets, cover prices rose due to VAT increases,
which also affected volumes negatively. In the fourth quarter, contracts for
distributing new products were signed in Finland and Lithuania.
Net sales from bookstores were EUR 123.3 (139.2) million. Net sales of the
comparable year included the subscription business divested in May 2008. In
Finland, Christmas book sales developed positively and sales of fiction,
paperbacks in particular, grew during the year. However, the total book market
was sluggish and net sales from bookstores decreased both in Finland and
Estonia. In Estonia, two new bookstores were opened in the fourth quarter.
Net sales from movie operations totalled EUR 88.0 (94.3) million. In Finland,
2009 was the second record year in row with over 5 million movie admissions and
net sales increased. Alternative content, 3D movies, easy-to-use online ticket
service and the multiplex theatre concept clearly attract customers. The
constant supply of interesting movies has evened out differences between
quarters. The economic downturn and lower private consumption affected movie
sales in the Baltic countries and net sales decreased in Latvia in particular.
Sanoma Trade's investments in tangible and intangible assets totalled EUR 25.5
(33.8) million, and focused mainly on ICT projects, 3D digital equipment as well
as on the expansion of the dispatch centre. There were no major acquisitions in
2009. In the comparable year, the most important acquisitions included minority
shares in the Latvian movie theatre operator Forum Cinemas and Lithuanian press
distributor Impress Teva, and the acquisition of the Russian kiosk chain KP
Rosnitza.
Sanoma Trade's operating profit excluding non-recurring items in 2009 amounted
to EUR 27.6 (45.1) million, a decrease of 38.8% coming from the foreign
operations. The non-recurring items included in the operating profit totalled
EUR -3.6 (0.0) million and consisted of restructuring costs in Russia, Latvia
and Lithuania. The operating profit decreased in all businesses due to lower
sales and earlier investments in new markets. The results in businesses in
Finland and the Netherlands were at the previous year's level. Operating profit
including non-recurring items totalled EUR 24.0 (45.1) million. In
October-December, the Division's operating profit excluding non-recurring items
was down by 30.3% and totalled EUR 10.3 (14.7) million. The fourth quarter's
development is the result of Sanoma Trade's intensive cost-saving programmes in
all businesses and the improved sales in Finnish kiosk operations and
bookstores.
Sanoma Trade continues to develop its concepts, particularly its kiosk and
bookstore concepts. Efficient chain management as well as a product and service
offering that caters to the needs of customers are key success factors in all
markets and will ensure the competitiveness of Sanoma Trade. With its 230
million annual customer contacts, Sanoma Trade gains valuable consumer insight
and has good possibilities to develop its product and service offering.
In 2010, Sanoma Trade's net sales are expected to increase slightly and
operating profit excluding non-recurring items to improve clearly from the
previous year's level.
THE GROUP
Personnel
In 2009, the average number of persons employed by the Sanoma Group was 20,637
(2008: 21,329; 2007: 19,587). In full-time equivalents, the number of Group
employees at the end of the year was 16,723 (2008: 18,453; 2007: 16,730). The
number of employees decreased due to restructuring measures in different
divisions. Some of the arrangements will continue to have an impact on personnel
numbers in 2010. In full-time equivalents, Sanoma Magazines had 5,191 (5,900)
employees at the end of 2009, Sanoma News 2,306 (2,449), Sanoma Entertainment
458 (488), Sanoma Learning & Literature 2,745 (2,908) and Sanoma Trade 5,943
(6,626). The number of employees in the Parent Company was 79 (81).
The total employee benefits to Sanoma employees in 2009, including the expense
recognition of options granted, amounted to EUR 563.0 (2008:
575.5; 2007: 533.0) million.
Dividend
On 31 December 2009, Sanoma Corporation's distributable funds were EUR 668.8
million, of which profit for the year made up EUR 145.0 million.
The Board of Directors proposes to the Annual General Meeting that:
- A dividend of EUR 0.80 per share, or in total an estimated EUR 129.5 million,
shall be paid
- A sum of EUR 0.5 million shall be transferred to the donation reserve and used
at the Board's discretion
- The amount left in equity shall be EUR 538.9 million
In accordance with the Annual General Meeting's decision, Sanoma paid out a
per-share dividend of EUR 0.90 for 2008. Sanoma conducts an active dividend
policy and primarily distributes over half of the Group result after taxes in
dividends.
AGM, Financial Statements and Annual Report
Sanoma Corporation AGM will be held on 8 April 2010 at 2 pm at the Congress Wing
of the Helsinki Exhibition & Convention Centre, Finland. The agenda of the
meeting is available on the Group's website. Sanoma's Annual Report, Financial
Statements and Board of Directors' Report for 2009 will be published in digital
format during week 10 (the week beginning 8 March). A printed copy of the Annual
Report will be available during week 11 (the week beginning 15 March).
Shares and holdings
In 2009, the number of Sanoma shares traded totalled 72,078,344 (100,271,123).
Traded shares accounted for 45% (62%) of the average number of shares for the
year. Sanoma's total stock exchange turnover was EUR 821.6 (1,500.2) million.
The volume-weighted average price of a Sanoma share in 2009 was EUR 11.45, with
a low of EUR 8.02 and a high of EUR 15.80. At the end of the year, Sanoma's
market capitalisation was EUR 2,536.5 (1,479.7) million, with Sanoma's share
closing at EUR 15.76 (9.21). On 31 December 2009, the Company had 21,045
shareholders, with foreign holdings accounting for 10.4% (10.9%) of all shares
and votes. There were no major changes in share ownership in 2009, and Sanoma
did not issue any flagging announcements.
During the year, the Board did not use its authorisation to repurchase the
Company's shares. The Company shares acquired in 2008 were cancelled in February
2009. During the first quarter of 2009, the number of shares also changed
because of shares registered with stock options. At the end of December, Sanoma
had 161,816,894 shares, including the interim shares related to the conversion
and registered on 7 January 2010. The registered share capital totalled EUR
71,258,986.82.
Board of Directors, auditors and management
The AGM of 1 April 2009 confirmed the number of Sanoma's Board members at ten.
Board members Jaakko Rauramo and Sakari Tamminen were re-elected, and Annet Aris
was elected to the Board as a new member. The Board of Directors of Sanoma
consists of the following: Jaakko Rauramo, Chairman; Sakari Tamminen, Vice
Chairman; and Annet Aris, Robert Castrén, Jane Erkko, Paavo Hohti, Sirkka
Hämäläinen-Lindfors, Seppo Kievari, Rafaela Seppälä and Hannu Syrjänen as
members.
The AGM re-appointed Pekka Pajamo, APA, and Sixten Nyman, APA, as his deputy,
and chartered accountants KPMG Oy Ab, with Kai Salli, APA, acting as the Auditor
in Charge, as the auditors of the Company.
During the year, two new members joined Sanoma's Executive Management Group
(EMG). Timo Mänty was appointed President and CEO of the Sanoma Trade division
and a member of the EMG as of 1 January 2009 and Chief Strategy Officer Sven
Heistermann was appointed a member of the EMG as of 1 October 2009. At the end
of 2009, the EMG comprised Hannu Syrjänen (Chairman), Eija Ailasmaa, Jacques
Eijkens, Sven Heistermann, Kim Ignatius, Timo Mänty, Anu Nissinen and Mikael
Pentikäinen.
Board authorisations
The AGM held on 1 April 2009 authorised the Board of Sanoma to decide on the
repurchase of a maximum 16,000,000 of the Company's own shares with the
Company's unrestricted shareholders' equity. The authorisation is effective
until 30 June 2010. The Board did not use this authorisation in 2009.
In addition, the Board has a valid authorisation until the AGM of 2010 to
increase the share capital with a maximum of 82,000,000 new shares and the
transfer of a maximum of 5,000,000 treasury shares. Under this authorisation,
the Board decided on 18 December 2009 on the issuance of Stock Option Scheme
2009.
During the review period, the authorisation by the AGM of 1 April 2008 for
repurchasing the Company's own shares was in force. The authorisation was not
used during the review period and its validity ended on 1 April 2009.
Seasonal fluctuation
The net sales and result of Sanoma Magazines, Sanoma News and Sanoma
Entertainment are particularly affected by the development of advertising.
Advertising sales are influenced, for example, by the number of newspaper and
magazine issues published during each quarter, which varies annually. Television
advertising in Finland is usually strongest in the second and fourth quarters.
Learning accrues most of its net sales and results during the second and third
quarters.
A major portion of the net sales and results in retail are, on the other hand,
generated in the last quarter, particularly from Christmas sales. Of course, the
number of shopping days and, for example, the distribution of holidays over
different quarters impacts the retail sales between quarters.
Seasonal business fluctuations influence the Group's net sales and operating
profit, with the first quarter traditionally being clearly the smallest.
Significant risks and uncertainty factors
While executing strategy, Sanoma and its divisions and subsidiaries are exposed
to numerous risks and risk taking opportunities. Managing business risks and the
opportunities associated with them is a core element in the daily
responsibilities of Sanoma's management.
The most significant risks and uncertainty factors Sanoma is facing are
described in the Financial Statements, together with the main principles of risk
management. Many of the identified risks relate to changes in customer
preferences. Ongoing digitisation has been the driving force behind these
changes for some time, and Sanoma has identified action plans in all its
divisions on how to respond to this challenge.
Normal business risks associated with the industry relate to developments in
media advertising and consumer spending. Media advertising is sensitive to
economic fluctuations. Therefore, the general economic conditions of the
countries in which the Group operates and the economic trends of the industry
influence Sanoma's business activities and operational performance.
GROUP FINANCIAL STATEMENTS (FULL-YEAR FIGURES AUDITED)
Accounting policies
The Sanoma Group has prepared its Financial Statements in accordance with IAS
34 'Interim Financial Reporting' while adhering to related IFRS standards and
interpretations applicable within the EU on 31 December 2009.
The Group has applied the following new or revised standards as of January
2009: IAS 1 'Presentation of Financial Statements' and IFRS 8 'Operating
Segments'. The adoption of IAS 1 'Presentation of Financial Statements' affected
the terminology in the Interim Report and the presentation of some financial
statements. The adoption of IFRS 8 had no material effect on Sanoma's Interim
Report.
Sanoma Learning & Literature has started to capitalize prepublication costs of
learning materials and solutions to intangible assets as of 1 January 2009.
Previously, the principle was to include prepublication expenses in acquisition
cost of inventory. The change in accounting policy does not have any material
impact on Sanoma's income statement or balance sheet.
The accounting policies of the Financial Statements and the definitions of key
indicators are presented on the Sanoma website at Sanoma.com. All figures have
been rounded and consequently the sum of individual figures can deviate from the
presented sum figure. Key figures have been calculated using exact figures.
CONSOLIDATED INCOME STATEMENT 1‑12/ 1‑12/
EUR million 2009 2008
NET SALES 2,767.9 3,030.1
Other operating income 64.6 97.1
Materials and services 1,238.5 1,367.4
Employee benefit expenses 695.5 702.8
Other operating expenses 536.2 588.8
Depreciation, amortisation and impairment losses 167.0 231.9
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OPERATING PROFIT 195.4 236.3
Share of results in associated companies -3.9 4.9
Financial income 22.5 18.9
Financial expenses 52.6 69.9
------------------------------------------------------------------
RESULT BEFORE TAXES 161.4 190.3
Income taxes -54.3 -69.4
------------------------------------------------------------------
RESULT FOR THE PERIOD 107.1 120.8
Result attributable to:
Equity holders of the Parent Company 105.6 115.7
Non-controlling interests 1.6 5.1
Earnings per share for result attributable to the equity
holders of the Parent company
Earnings per share, EUR 0.66 0.72
Diluted earnings per share, EUR 0.66 0.72
STATEMENT OF COMPREHENSIVE INCOME 1‑12/ 1‑12/
EUR million 2009 2008
Result for the period 107.1 120.8
Other comprehensive income:
Change in translation differences -5.0 -39.1
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TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 102.1 81.7
Total comprehensive income attributable to:
Equity holders of the Parent Company 100.5 77.5
Non-controlling interests 1.6 4.2
CONSOLIDATED BALANCE SHEET
EUR million 31.12.2009 31.12.2008
ASSETS
NON-CURRENT ASSETS
Tangible assets 484.2 510.4
Investment property 9.4 10.2
Goodwill 1,488.9 1,491.6
Other intangible assets 399.3 379.7
Interests in associated companies 63.5 69.9
Available-for-sale financial assets 15.7 20.6
Deferred tax receivables 30.1 36.6
Trade and other receivables 31.4 41.0
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NON-CURRENT ASSETS, TOTAL 2,522.3 2,560.0
CURRENT ASSETS
Inventories 141.6 173.2
Income tax receivables 19.3 24.9
Trade and other receivables 362.9 409.1
Available-for-sale financial assets 0.5 0.5
Cash and cash equivalents 59.7 110.9
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CURRENT ASSETS, TOTAL 584.0 718.7
ASSETS, TOTAL 3,106.3 3,278.7
EQUITY AND LIABILITIES
EQUITY
Equity attributable to the equity holders of the Parent Company
Share capital 71.3 71.3
Treasury shares -37.5
Fund for invested unrestricted equity 188.8 192.7
Other equity 931.1 993.7
-----------------------------------------------------------------
1,191.2 1,220.1
Non-controlling interests 15.4 17.0
-----------------------------------------------------------------
EQUITY, TOTAL 1,206.6 1,237.1
NON-CURRENT LIABILITIES
Deferred tax liabilities 101.2 106.2
Pension obligations 29.9 37.9
Provisions 10.7 6.0
Interest-bearing liabilities 541.6 449.0
Trade and other payables 28.2 34.6
CURRENT LIABILITIES
Provisions 23.8 10.9
Interest-bearing liabilities 476.1 633.6
Income tax liabilities 16.9 11.7
Trade and other payables 671.3 751.7
-----------------------------------------------------------------
LIABILITIES, TOTAL 1,899.7 2,041.6
EQUITY AND LIABILITIES, TOTAL 3,106.3 3,278.7
CHANGES IN CONSOLIDATED EQUITY
EUR million
Equity attributable to the equity holders of the Parent
Company
Fund
for
inves- Non-
ted cont-
Share unre- rol-
Share pre- Trea- stric- ling Equi-
capi- mium sury ted Other inte- ty,
tal fund shares equity equity Total rests total
Equity at
1 Jan 2008 71.3 187.6 -51.6 1,138.6 1,345.9 18.3 1,364.2
Share subscription
with options 0.0 0.0 5.1 5.1 5.1
--------------------------------------------------------------------------------
Acquisition
of treasury shares -47.6 -47.6 -47.6
--------------------------------------------------------------------------------
Cancellation
of treasury shares 61.6 -61.6
--------------------------------------------------------------------------------
Expense
recognition of
options granted 5.0 5.0 5.0
--------------------------------------------------------------------------------
Dividends paid -160.8 -160.8 -3.5 -164.3
--------------------------------------------------------------------------------
Change in non-
controlling
interests -3.1 -3.1 -2.1 -5.2
--------------------------------------------------------------------------------
Donations -1.7 -1.7 -1.7
--------------------------------------------------------------------------------
Transfer of
premium fund -187.6 187.6
--------------------------------------------------------------------------------
Comprehensive
income for the period 77.5 77.5 4.2 81.7
--------------------------------------------------------------------------------
Equity at
31 Dec 2008 71.3 -37.5 192.7 993.7 1,220.1 17.0 1,237.1
Equity at
1 Jan 2009 71.3 -37.5 192.7 993.7 1,220.1 17.0 1,237.1
Share subscription
with options 12.3 12.3 12.3
--------------------------------------------------------------------------------
Cancellation
of treasury shares 37.5 -37.5
--------------------------------------------------------------------------------
Expense
recognition of
options granted 3.8 3.8 3.8
--------------------------------------------------------------------------------
Dividends paid -144.9 -144.9 -1.2 -146.2
--------------------------------------------------------------------------------
Change in non-
controlling
interests -2.0 -2.0
--------------------------------------------------------------------------------
Donations -0.5 -0.5 -0.5
--------------------------------------------------------------------------------
Transfer from fund -16.1 16.1
--------------------------------------------------------------------------------
Comprehensive
income for the period 100.5 100.5 1.6 102.1
--------------------------------------------------------------------------------
Equity at
31 Dec 2009 71.3 188.8 931.1 1,191.2 15.4 1,206.6
INCOME STATEMENT BY QUARTER
EUR million 1‑3/ 4‑6/ 7‑9/ 10‑12/ 1‑3/ 4‑6/ 7‑9/ 10‑12/
2009 2009 2009 2009 2008 2008 2008 2008
NET SALES 636.0 697.2 701.1 733.6 683.1 769.8 778.6 798.7
Other operating income 14.1 19.4 13.3 17.9 38.1 17.7 14.8 26.5
Materials and services 286.4 304.8 315.0 332.2 309.4 333.4 352.0 372.6
Employee benefit expenses 176.2 174.8 160.5 184.0 172.2 177.5 167.8 185.2
Other operating expenses 128.2 129.0 122.1 156.8 131.1 141.5 141.9 174.3
Depreciation, amortisation 38.4 42.8 39.8 46.0 35.8 36.6 37.7 121.9
and impairment losses
--------------------------------------------------------------------------------
OPERATING PROFIT 20.9 65.1 77.1 32.3 72.7 98.5 94.0 -28.8
Share of results in 0.3 -0.6 -2.0 -1.6 3.0 1.6 0.4 -0.1
associated companies
Financial income 6.7 8.8 4.1 2.8 3.5 3.1 6.1 6.2
Financial expenses 17.0 12.3 12.0 11.3 12.7 14.5 15.3 27.4
--------------------------------------------------------------------------------
RESULT BEFORE TAXES 10.9 61.1 67.2 22.3 66.5 88.7 85.2 -50.1
Income taxes -3.2 -17.4 -20.0 -13.7 -12.2 -23.4 -24.1 -9.8
--------------------------------------------------------------------------------
RESULT FOR THE PERIOD 7.7 43.7 47.2 8.6 54.4 65.3 61.1 -59.9
Result attributable to:
Equity holders of the Parent 8.3 43.3 47.6 6.4 54.5 64.4 59.0 -62.2
Company
Non-controlling interests -0.6 0.3 -0.3 2.2 -0.2 0.9 2.1 2.3
Earnings per share for result attributable
to the equity holders of the Parent company
Earnings per share, EUR 0.05 0.27 0.30 0.04 0.34 0.40 0.37 -0.39
Diluted earnings per share, 0.05 0.27 0.30 0.04 0.34 0.40 0.37 -0.39
EUR
INCOME STATEMENT BY QUARTER
EUR million 1‑12/ 1‑12/
2009 2008
NET SALES 2,767.9 3,030.1
Other operating income 64.6 97.1
Materials and services 1,238.5 1,367.4
Employee benefit expenses 695.5 702.8
Other operating expenses 536.2 588.8
Depreciation, amortisation and impairment losses 167.0 231.9
------------------------------------------------------------------
OPERATING PROFIT 195.4 236.3
Share of results in associated companies -3.9 4.9
Financial income 22.5 18.9
Financial expenses 52.6 69.9
------------------------------------------------------------------
RESULT BEFORE TAXES 161.4 190.3
Income taxes -54.3 -69.4
------------------------------------------------------------------
RESULT FOR THE PERIOD 107.1 120.8
Result attributable to:
Equity holders of the Parent Company 105.6 115.7
Non-controlling interests 1.6 5.1
Earnings per share for result attributable
to the equity holders of the Parent company
Earnings per share, EUR 0.66 0.72
Diluted earnings per share, EUR 0.66 0.72
CONSOLIDATED CASH FLOW STATEMENT 1‑12/ 1‑12/
EUR million 2009 2008
OPERATIONS
Result for the period 107.1 120.8
Adjustments
Income taxes 54.3 69.4
Financial expenses 52.6 69.9
Financial income -22.5 -18.9
Share of results in associated companies 3.9 -4.9
Depreciation and impairment losses 167.0 231.9
Gains/losses on sales of non-current assets -2.4 -34.2
Other adjustments -56.4 -40.1
Change in working capital
Change in trade and other receivables 47.4 -18.5
Change in inventories 5.6 -0.5
Change in trade and other payables, and provisions -36.9 3.6
Interest paid -34.6 -53.4
Other financial items -2.0 -4.5
Taxes paid -41.4 -70.2
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATIONS 241.8 250.3
INVESTMENTS
Acquisition of tangible and intangible assets -80.2 -113.3
Operations acquired -27.1 -162.3
Sales of tangible and intangible assets 5.4 12.7
Operations sold 0.5 49.2
Loans granted -0.9 -19.8
Repayments of loan receivables 3.3 8.8
Sales of short-term investments 0.0 0.5
Interest received 4.8 7.4
Dividends received 4.3 7.5
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTMENTS -89.9 -209.3
CASH FLOW BEFORE FINANCING 151.9 41.1
FINANCING
Proceeds from share subscriptions 12.3 5.1
Minority capital investment/repayment of equity 1.0
Purchase of treasury shares -48.2
Change in loans with short maturity -42.6 -53.8
Drawings of other loans 399.7 525.1
Repayments of other loans -460.0 -264.6
Payment of finance lease liabilities -3.5 -2.8
Dividends paid -146.2 -164.3
Donations/other profit sharing -0.5 -0.5
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING -240.8 -3.1
CHANGE IN CASH AND CASH EQUIVALENTS
ACCORDING TO CASH FLOW STATEMENT -88.9 38.0
Effect of exchange rate differences on cash and cash equivalents 0.0 0.1
NET CHANGE IN CASH AND CASH EQUIVALENTS -88.9 38.1
Cash and cash equivalents at the beginning of the period 110.5 72.4
Cash and cash equivalents at the end of the period 21.6 110.5
Cash and cash equivalents in cash flow statement include cash and cash
equivalents less bank overdrafts.
NET SALES BY BUSINESS
EUR million 1‑3/ 4‑6/ 7‑9/ 10‑12/ 1‑3/ 4‑6/ 7‑9/ 10‑12/
2009 2009 2009 2009 2008 2008 2008 2008
SANOMA MAGAZINES
Sanoma Magazines Netherlands 110.6 123.2 120.7 138.6 111.7 135.2 124.8 143.9
Sanoma Magazines 50.9 53.2 48.8 58.5 70.1 76.8 77.4 82.4
International
Sanoma Magazines Belgium 51.3 52.6 50.8 57.5 54.2 55.5 53.7 59.8
Sanoma Magazines Finland 50.3 48.0 46.9 53.5 50.7 51.9 49.1 53.9
Eliminations -1.0 -1.2 -1.2 -1.0 -1.3 -0.9 -1.0 -1.1
--------------------------------------------------------------------------------
TOTAL 262.1 275.9 266.1 307.1 285.5 318.5 304.0 338.9
SANOMA NEWS
Helsingin Sanomat 61.7 58.3 56.2 64.1 74.1 71.2 65.6 68.6
Ilta-Sanomat 18.4 19.8 19.6 20.3 19.7 21.2 19.9 19.6
Other publishing 22.9 23.8 21.3 23.8 24.7 25.6 24.2 26.4
Other businesses 36.2 35.9 34.9 36.6 37.9 37.5 36.5 38.2
Eliminations -31.7 -30.8 -30.8 -31.9 -35.5 -34.5 -32.7 -33.5
--------------------------------------------------------------------------------
TOTAL 107.7 107.1 101.2 112.9 120.8 121.1 113.5 119.2
SANOMA ENTERTAINMENT
TV and radio 23.5 23.6 17.4 23.6 22.6 24.5 18.0 23.8
Other businesses 17.3 17.4 17.8 18.0 18.0 16.7 16.8 17.9
Eliminations -0.5 -0.3 -0.2 -0.4 -0.1 -0.3 -0.1 -0.6
--------------------------------------------------------------------------------
TOTAL 40.3 40.6 35.0 41.1 40.5 40.9 34.7 41.0
SANOMA LEARNING & LITERATURE
Learning 30.6 81.6 94.3 32.7 27.8 87.5 105.9 52.2
Language services 8.3 6.2 6.7 6.3 6.2 5.8 7.5 9.3
Literature and other 24.6 17.0 19.3 28.0 27.8 20.4 23.3 29.7
businesses
Eliminations -2.6 -2.8 -2.7 -2.3 -3.4 -3.2 -3.5 -3.2
--------------------------------------------------------------------------------
TOTAL 60.8 101.9 117.6 64.7 58.3 110.5 133.2 88.0
SANOMA TRADE
Kiosk operations 91.1 106.6 100.7 112.6 94.6 102.5 103.8 108.6
Trade services 49.6 55.5 58.1 59.1 58.2 60.2 61.8 61.3
Bookstores 27.3 19.7 31.8 44.5 31.0 24.0 36.9 47.3
Movie operations 23.6 18.0 22.7 23.6 24.4 19.4 23.8 26.7
Eliminations -3.8 -4.0 -4.1 -4.6 -5.5 -3.0 -4.8 -4.5
--------------------------------------------------------------------------------
TOTAL 187.7 195.7 209.2 235.3 202.7 203.2 221.4 239.3
Other companies and -22.7 -24.1 -28.0 -27.5 -24.8 -24.4 -28.2 -27.9
eliminations
--------------------------------------------------------------------------------
TOTAL 636.0 697.2 701.1 733.6 683.1 769.8 778.6 798.7
NET SALES BY BUSINESS 1‑12/ 1‑12/
EUR million 2009 2008
SANOMA MAGAZINES
Sanoma Magazines Netherlands 493.2 515.7
Sanoma Magazines International 211.3 306.7
Sanoma Magazines Belgium 212.3 223.2
Sanoma Magazines Finland 198.8 205.6
Eliminations -4.3 -4.3
--------------------------------------------------
TOTAL 1,111.2 1,246.8
SANOMA NEWS
Helsingin Sanomat 240.3 279.5
Ilta-Sanomat 78.2 80.4
Other publishing 91.8 100.9
Other businesses 143.7 150.1
Eliminations -125.2 -136.2
--------------------------------------------------
TOTAL 428.9 474.7
SANOMA ENTERTAINMENT
TV and radio 88.1 88.9
Other businesses 70.4 69.4
Eliminations -1.4 -1.1
--------------------------------------------------
TOTAL 157.1 157.1
SANOMA LEARNING & LITERATURE
Learning 239.1 273.3
Language services 27.5 28.8
Literature and other businesses 88.9 101.2
Eliminations -10.4 -13.3
--------------------------------------------------
TOTAL 345.1 390.0
SANOMA TRADE
Kiosk operations 410.9 409.4
Trade services 222.2 241.5
Bookstores 123.3 139.2
Movie operations 88.0 94.3
Eliminations -16.6 -17.8
--------------------------------------------------
TOTAL 827.8 866.6
Other companies and eliminations -102.3 -105.2
--------------------------------------------------
TOTAL 2,767.9 3,030.1
OPERATING PROFIT BY DIVISION
EUR million 1‑3/ 4‑6/ 7‑9/ 10‑12/ 1‑3/ 4‑6/ 7‑9/ 10‑12/
2009 2009 2009 2009 2008 2008 2008 2008
Sanoma Magazines 15.5 30.2 23.1 27.4 48.2 46.6 31.6 -40.6
Sanoma News 6.0 3.5 11.8 10.8 17.9 14.7 15.2 9.4
Sanoma Entertainment 6.1 6.9 3.8 3.9 4.0 6.3 2.8 4.1
Sanoma Learning & Literature -6.9 25.1 33.1 -12.8 -4.3 26.4 36.3 -12.7
Sanoma Trade 3.8 3.8 9.7 6.7 9.9 7.4 13.0 14.7
Other companies and eliminations -3.7 -4.3 -4.4 -3.7 -3.0 -2.9 -5.0 -3.7
------------------------------------------------------------------------------
TOTAL 20.9 65.1 77.1 32.3 72.7 98.5 94.0 -28.8
OPERATING PROFIT BY DIVISION
EUR million 1‑12/ 1‑12/
2009 2008
Sanoma Magazines 96.3 85.7
Sanoma News 32.2 57.3
Sanoma Entertainment 20.7 17.3
Sanoma Learning & Literature 38.5 45.6
Sanoma Trade 24.0 45.1
Other companies and eliminations -16.2 -14.6
----------------------------------------------
TOTAL 195.4 236.3
SEGMENT INFORMATION
The operating segments of the Sanoma Group comprise the Group's five divisions:
Sanoma Magazines, Sanoma News, Sanoma Entertainment, Sanoma Learning &
Literature and Sanoma Trade. The segmentation is based on business model and
product differences. The media business, based on advertising and circulation
sales, is divided into three segments: Sanoma Magazines is responsible for
magazines, Sanoma News for newspapers and Sanoma Entertainment for TV and
broadband business. Sanoma Learning & Literature business is mainly b-2-b
business. Sanoma Trade, on the other hand, operates on a retail business model.
In addition to the Group eliminations column, unallocated/eliminations includes
Sanoma Corporation and real estate companies as well as items not allocated to
segments.
The adoption of IFRS 8 has not changed reportable segments because also the
segment information the Group has presented earlier has been based on internal
management reporting.
The accounting policies for segment reporting do not differ from the Group's
accounting policies and have not changed due to the adoption of IFRS 8. The
decisions concerning assessing the performance of operating segments and
allocating resources to the segments are based on segments' operating profit.
The Group's Executive Management Group acts as the chief operating decision
maker. The Group has not aggregated operating segments to form the above
mentioned reportable segments. Segment assets do not include cash and cash
equivalents, interest-bearing receivables and tax receivables. Transactions
between segments are based on market prices.
Sanoma Divisions 1.1-31.12.2009
Lear- Unallo-
Enter- ning & cated/ Con-
Maga- tain- Lite- elimi- soli-
EUR million zines News ment rature Trade nations dated
------------------------------------------------------------------------
External net sales 1,108.8 420.5 155.5 329.9 753.3 -0.2 2,767.9
Internal net sales 2.4 8.4 1.6 15.3 74.5 -102.1
NET SALES, TOTAL 1,111.2 428.9 157.1 345.1 827.8 -102.3 2,767.9
OPERATING PROFIT 96.3 32.2 20.7 38.5 24.0 -16.2 195.4
Share of results in
associated companies -4.4 0.2 -0.1 0.4 -3.9
Financial income 22.5 22.5
Financial expense 52.6 52.6
RESULT BEFORE TAXES 161.4
SEGMENT ASSETS 1,519.1 345.4 125.0 550.4 439.1 3.8 2,982.7
Sanoma Divisions 1.1-31.12.2008
Lear- Unallo-
Enter- ning & cated/ Con-
Maga- tain- Lite- elimi- soli-
EUR million zines News ment rature Trade nations dated
------------------------------------------------------------------------
External net sales 1,243.8 467.2 155.5 372.8 790.9 0.0 3,030.1
Internal net sales 3.1 7.5 1.6 17.2 75.8 -105.2
NET SALES, TOTAL 1,246.8 474.7 157.1 390.0 866.6 -105.2 3,030.1
OPERATING PROFIT 85.7 57.3 17.3 45.6 45.1 -14.6 236.3
Share of results in
associated companies 4.5 0.2 0.0 0.0 0.4 -0.1 4.9
Financial income 18.9 18.9
Financial expense 69.9 69.9
RESULT BEFORE TAXES 190.3
SEGMENT ASSETS 1,576.8 373.6 135.2 552.4 449.3 3.1 3,090.5
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million 31.12.2009 31.12.2008
Carrying amount at the beginning of the period 510.4 498.7
Increases 46.0 81.2
Acquisition of operations 1.0 7.3
Decreases -2.9 -7.0
Disposals of operations 0.0 -0.2
Depreciation for the period -68.5 -66.4
Impairment losses for the period -1.6 -0.7
Exchange rate differences and other changes 0.0 -2.6
----------------------------------------------------------------------
Carrying amount at the end of the period 484.2 510.4
The Group had no commitments for acquisition of tangible assets at the end of
the reporting period or in the comparative period.
EFFECT OF ACQUISITIONS ON THE CONSOLIDATED BALANCE SHEET
EUR million 1‑12/2009
Acquisition costs 6.7
Fair value of acquired net assets 2.8
-------------------------------------------------
Goodwill 3.9
Negative goodwill in income statement -0.9
-------------------------------------------------
Change in goodwill 4.8
1‑12/2008 1‑12/2008
Nowa Era Muut
Acquisition costs 62.5 128.2
Fair value of acquired net assets 7.8 39.4
-------------------------------------------------------
Goodwill 54.6 88.8
CONTINGENT LIABILITIES
EUR million 31.12.2009 31.12.2008
Contingencies for own commitments
Mortgages 22.8 23.7
Pledges 6.8 6.0
Other items 0.4 0.4
TOTAL 30.0 30.1
Contingencies incurred on behalf of associated companies
Guarantees 10.5 10.5
TOTAL 10.5 10.5
Contingencies incurred on behalf of other companies
Guarantees 0.1 0.2
TOTAL 0.1 0.2
Other contingencies
Operating lease liabilities 255.4 263.8
Royalties 18.9 23.6
Other items 27.7 38.1
TOTAL 302.0 325.5
----------------------------------------------------------
TOTAL 342.5 366.2
The Sanoma Group had no derivative contracts during the reporting period or
during the previous year.
KEY EXCHANGE RATES
1‑12/ 1‑12/
Average rate 2009 2008
EUR/CZK (Czech Koruna) 26.52 25.16
EUR/HUF (Hungarian Forint) 280.30 251.25
EUR/PLN (Polish Zloty) 4.33 3.53
EUR/RUB (Russian Rouble) 44.07 36.69
EUR/SEK (Swedish Crown) 10.61 9.66
Closing rate 31.12.2009 31.12.2008
EUR/CZK (Czech Koruna) 26.47 26.88
EUR/HUF (Hungarian Forint) 270.42 266.70
EUR/PLN (Polish Zloty) 4.10 4.15
EUR/RUB (Russian Rouble) 43.15 41.28
EUR/SEK (Swedish Crown) 10.25 10.87
Helsinki
Board of Directors
Sanoma Corporation
Press Conference
Press and analyst meeting in Finnish will be held by Mr Hannu Syrjänen,
President and CEO of Sanoma at 1:30 pm (Finnish time) at Sanomatalo,
Töölönlahdenkatu 2, Helsinki.
A conference call in English for analysts and investors will be arranged at
4:30 pm (Finnish time). Mr Hannu Syrjänen, President and CEO of Sanoma, will
present the result. To join the conference, please dial +44 (0)20 3003 2666
(Europe) or +1 866 966 5335 (US). The event can also be listened at Sanoma.com
either live or later as on demand.
The presentation material of the press and analyst meeting as well as the slides
used in the conference call will be available on Sanoma's website after the
press and analyst meeting has started.
Sanoma will publish its Interim Report for January-March 2010 on Wednesday, 5
May 2010 at approximately 11 am (Finnish time).
Sanoma Corporation
Kim Ignatius
Chief Financial Officer
Additional information: Sanoma's Group Communications, tel +358 105 19 5062 or
communications@sanoma.com
Sanoma.com
Sanoma inspires, informs and connects. As a diversified media group, we bring
information, experiences, education and entertainment to millions of people
every day. We make sure that quality content and interesting products and
services are easily available and meet the demands of our readers, viewers and
listeners. We offer a challenging and interesting working environment for
20,000 people in over 20 countries throughout Europe. In 2009, the Group's net
sales totalled EUR 2.8 billion.
[HUG#1383442]
