Interim Report 3Q01, Slides

SanomaWSOY 1-9/2001

Hannu Syrjänen, President & COO

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Group income statement by quarter € million 1-3/01 4-6/01 7-9/01 7-9/00 Net sales 361.4 362.2 353.8 345.5 Other operational income and change of inventories 21.2 10.2 7.5 6.9 Share of result of associated companies -0.6 4.8 -0.2 4.0 Operational expenses 369.3 359.7 345.7 329.7 Operating profit 12.7 17.5 15.4 26.6 Financial income and expenses 5.4 10.2 -16.1 -4.7 Profit before extraordinary items 18.1 27.6 -0.8 21.9 Extraordinary items 0.0 0.0 0.0 0.0 Profit after extraordinary items 18.1 27.6 -0.8 21.9 Direct taxes (profit-related) -6.6 -6.3 -2.2 -6.9 Minority interest of the result for the period -4.4 -1.5 -2.2 -1.9 Profit for the period 7.1 19.8 -5.1 13.1

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Financial income and expenses

€ million Q1/01 Q2/01 Q3/01 Q1-3/01 Financial income 16.2 14.1 7.4 37.7 Financial expenses 10.8 3.9 23.5 38.3 Financial net 5.4 10.2 -16.1 -0.6

€ million Q1/00 Q2/00 Q3/00 Q1-3/00 Financial income 44.2 23.5 5.8 73.5 Financial expenses 5.9 4.7 10.5 21.1 Financial net 38.3 18.8 -4.7 52.4

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Key developments, 1-9/2001

• Net sales increased in all sectors • Somewhat lower result at Sanoma, SWelcom, and WSOY; better result at Helsinki Media and Rautakirja • Profit before extraordinary items lower as a result of reduced net financial income (sale of technology shares in 2000) • Uncertainty on the advertising market • Increased market share: – Helsinki Media’s magazines, Nelonen • Cost-saving measures continue • Sanoma Magazines began operations on October 1

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 SanomaWSOY Group (by quarter) NET SALES, € million OPERATING PROFIT, € million 450 30 400 361.4 362.2 353.8 25 350 26.6 23.6 300 407.4 20 345.5 17.5 349.0 20.7 15.4 250 345.9 15 12.7 200 150 10 13.1 2000 2001 2000 2001 100 5 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Key indicators, 1-9/2001

€ million 30.9.2001 30.9.2000 Change,% 31.12.2000 Net sales 1,077.4 1,040.4 3.6 1,447.8 Operating profit 45.6 60.4 -24.5 84.0 % of net sales 4.2 5.8 5.8 Operating profit before amortisation *) 55.3 67.2 -17.7 94.3 % of net sales 5.1 6.5 6.5 Balance sheet total 1,671.8 1,429.2 17.0 1,439.3 Gross investments 126.9 118.2 7.3 168.4 Equity ratio, % 56.3 67.8 67.9 Earnings/share, € 0.16 0.56 -71.9 0.67 Market capitalisation 1,390.3 2,273.7 -38.9 1,964.6 Personnel under employment contract 14,051 13,340 5.3 13,364 Personnel, average 11,031 10,287 7.2 10,350 *) Amortisation on consolidated goodwill

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Group income statement, 1-9/2001 € million 1-9/2001 1-9/2000 Change,% 1-12/2000 Net sales 1,077.4 1,040.4 3.6 1,447.8 Other operational income and change in inventories 38.9 30.1 29.2 37.1 Share of result of associated companies 4.0 6.9 -42.4 6.4 Operational expenses 1,074.7 1,017.1 5.7 1,407.3 Operating profit 45.6 60.4 -24.5 84.0 Financial income and expenses -0.6 52.4 -101.15 54.3 Profit before extraordinary items 45.0 112.9 -60.2 138.3 Extraordinary items 0.0 0.0 2.0 Profit after extraordinary items 45.0 112.9 -60.2 140.3 Direct taxes (profit-related) -15.0 -30.8 -51.2 -39.3 Minority interest of the result for the period -8.1 -4.5 82.0 -6.8 Profit for the period 21.8 77.6 -71.9 94.2

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Group balance sheet

€ million 30.9.2001 30.9.2000 Change,% 31.12.2000 Non-current assets, total 858.5 804.0 6.8 827.4 Current assets, total 813.3 625.2 30.1 611.9

Shareholders' equity, total 984.7 808.7 21.8 822.6 Minority interest 118.7 116.8 1.6 120.1 Statutory provisions 5.7 1.7 244.5 2.3 Liabilities, total 562.7 502.0 12.1 494.2

Balance sheet total 1,671.8 1,429.2 17.0 1,439.3

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Advertising sales revenue development in Finland by media €, thousands 1-9/2001 Change, % NEWSPAPERS 405,503 -3.7 Aamulehti 28,716 -3 Helsingin Sanomat 114,342 -8 Helsingin Sanomat, excl. supplements 108,343 -8 Ilta-Sanomat 9,675 -2 Iltalehti 8,927 3 Kauppalehti 15,178 -3 Taloussanomat 4,085 17 Turun Sanomat 26,145 -5 KÄRKIMEDIA *) 68,638 8

Source: Gallup-Mainostieto, *) Kärkimedia 9

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Advertising sales revenue development in Finland by media

€, thousands 1-9/2001 Change, % MAGAZINES 102,033 0.5 TELEVISION 138,321 -7.5 RADIO 25,131 3.6 OUTDOOR ADVERTISING 25,387 3.3 CINEMA 1,395 29.5 INTERNET 5,771 0.9

Source: Gallup-Mainostieto

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Helsinki Media

NET SALES, € million OPERATING PROFIT, € million 50 6.5 6.2 6 45 41.7 2000 2001 39.2 5.5 40 37.7 45.3 5 35 39.5 39.3 4.5 5.1 35.8 30 4 3.5 3.5 25 3 3.5 20 2.5 2 15 2000 2001 10 1.5 1.0 1 0.6 5 0.5 1.0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Helsinki Media / Key developments • Improved circulation and advertising revenue – Helsinki Media's advertising revenue up 6%, compared to overall growth of 0.5% in Finland • Book sales below 2000 • Total number of readers of Helsinki Media titles increased by 4.5% to around 6.8 million (KMT)* • Improved operating profit, driven by good performance at Hansaprint, reduced depreciation, and social security payment refund • Majority holding acquired in July in Suomen Rakennuslehti Oy, a publisher of construction and real estate titles • Publication of men’s lifestyle magazine, MG, terminated in September • As of October 1, Helsinki Media is part of Sanoma Magazines Projection for 2001: • Full-year net sales projected to increase by around 4% • Operating profit is projected to continue to improve

*KMT = National media study 12

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Helsinki Media Operational indicators, 1.1 - 30.9

2001 2000 1999

Share of Finnish magazine advertising market, % 20% 18% Magazine circulation 1.1 -31.12, thousands *) 1,909 1,803 Number of books published 128 172

*) Audited average circulation figures for 1999 and 2000

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 CIG / Key developments The figures for CIG are indicative and have been calculated following SanomaWSOY’s accounting principles, which differ from those of VNU

• Net sales between January and September rose to around € 600 million, and operating profit totalled around € 65 million. • Circulation revenues in The Netherlands were slightly up on 2000. Uncertainty in the advertising market undermined profitability. • Aldipress’ net sales were at 2000 levels. Operating profit was down as a result of lower revenues from special events and products (Olympics, Pokémon) • Circulation sales in Belgium were slightly down • Net sales in other markets were up, but the slower advertising market affected the Czech Republic and Hungary in particular. Cost-cutting measures in these countries have been introduced. • Q4 traditionally strong for CIG’s businesses. • Part of SanomaWSOY from October 1, 2001.

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Sanoma

NET SALES, € million OPERATING PROFIT, € million 140.0 18 119.9 118.3 16 120.0 108.5 14.2 116.0 14 15.7 100.0 112.3 119.9 14.6 110.0 12 13.1 80.0 10 12.4 8.9 60.0 8 7.3 6 40.0 4 20.0 2000 2001 2000 2001 2 0.0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Sanoma / Key developments

• Weaker media advertising impacted both net sales and operating profit • Job advertisements have continued to decline: – 7% from January to June, 35% from July to September • Daily circulation at Helsingin Sanomat rose to last year’s levels. Net sales and operating profit were weaker. • Improved net sales and profitability at Ilta-Sanomat • Advertising revenue up at Keltainen Pörssi • Improved net sales at Startel, and reduced operating loss • Cost-cutting measures have been launched. The effects of these will be seen in 2002

Projection for 2001 • Full-year net sales projected to come in at 2000 levels. • Operating profit projected to be clearly below 2000

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Advertising in Helsingin Sanomat (column metres)

5000

4500

4000 2001 3500 2000 3000 1999 2500

2000

1500

Jul Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Helsingin Sanomat’s net daily circulation 480000 475000 470000 465000 460000 455000 450000 445000 440000 435000 430000 425000 420000 415000 410000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1998 1999 2000 2001

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Ilta-Sanomat’s and Iltalehti’s monthly news stand sales, 1999-2001

250.000

230.000 IS01 210.000 IS00 IS99 190.000 IL01 170.000 IL00 150.000 IL99 130.000 110.000 90.000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Subscriber volume at Taloussanomat, 1998-2001

40000

30000 1998 1999 20000 2000 2001 10000

Jul Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec

Monthly average

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 SWelcom

NET SALES, € million OPERATING PROFIT, € million 25.0 0 21.6 Q1 Q2 Q3 Q4 20.8 -1 24.0 20.0 18.0 -2.3 -2 2000 2001 20.7 -3 -3.6 15.0 18.7 -4.4 15.2 -4 10.0 -5 -6.4 -6 5.0 -5.8 -6.0 2000 2001 -7 -7.0 0.0 -8 Q1 Q2 Q3 Q4

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 SWelcom / Key developments

• Nelonen has emerged as Finland’s third-largest advertising media in terms of net sales • The channel’s net sales remained at 2000 levels, despite a nearly 8% reduction in the overall TV advertising market. • Helsinki Television’s net sales rose by 16% and profitability improved clearly. • Digital-TV broadcasting began in Finland on August 27. Nelonen’s digital broadcasting began as planned. SWelcom’s Movie Channel and CANAL+ launched a selection of forthcoming programmes free of charge. • Swwap Oy initiated statutory employee consultation procedures in September. A reduction of 15 to 20 people is expected.

Projection for 2001 • Full-year net sales projected to be around € 86 million • Operating loss projected to be in the order of € 26 million

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Audience figures for

% Nelonen 28 26 national 10+ 24 commercial 10+ 22 20 18 16 14 12 10 8 6 4 2 0 PTV4 09/97 01/98 05/98 09/98 01/99 05/99 09/99 01/00 05/00 09/00 01/01 05/01 09/01

Source: Finnpanel Oy

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 TV advertising market and Nelonen

25.0 40.0 35.0 20.0 30.0

15.0 25.0

20.0 % 10.0 15.0 EUR million TV advertising market, MEUR 10.0 5.0 Nelonen 5.0 0.0 0.0

Jul,00 Jul,01 Sep,99 Nov,99 Jan,00 Mar,00 May,00 Sep,00 Nov,00 Jan,01 Mar,01 May,01 Sep,01

Source: Gallup-Mainostieto

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Sales revenue at Nelonen (cumulative)

55 50 2000 45 2001 40 35 30

MEUR 25 20 15 10 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 SWelcom Operational indicators, 1.1-30.9

2001 2000

Nelonen’s share of Finnish TV advertising, January - September, % 26% 23.9% Number of cable-TV households, thousands 216 208 Number of pay-TV subscriptions, thousands 39 44 Number of broadband Internet connections, thousands 17 7

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 WSOY

NET SALES, € million OPERATING PROFIT, € million 70 10

60 65.3 8 9.3 52.0 51.9 7.3 50 6.0 42.1 51.3 6 40 47.5 39.4 4 30 4.6 4.3 2000 2001 2 20 0.1 2000 2001 10 0 Q1 Q2 Q3 Q4 0 -2 -1.0 Q1 Q2 Q3 Q4

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 WSOY / Key developments

• Traditional publishing performed positively. eLearning-related investments had a downward impact on operating profit • Comprehensive school books for the 2001/2002 school year did well, full-year sales are projected to be up around 9% • The Opit eLearning environment was opened in October • WSOY decided not to launch its Learning Channel • In October, WSOY increased its holding in Everscreen Mediateam from 25% to 64%, and Everscreen acquired Docendo’s eLearning activities.

Projection for 2001 • Full-year net sales projected to rise by 6% • Operating profit projected to be at 2000 levels

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 WSOY Operational indicators, 1.1-30.9

2001 2000

Number of new titles published Books 482 470 Electronic products 99 107 Number of reprints published Books 936 936 Electronic products 198 195

Books printed, million 16.7 16.5 Paper consumption, tonnes 9,533 8,793

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Rautakirja

NET SALES, € million OPERATING PROFIT, € million 200 16 14.6 170.4 180 164.6 14 156.9 160 178.9 12 13.0 140 157.8 160.5 147.4 120 10 9.1 10.8 100 8 7.9 80 6 60 2000 2001 3.9 4 40 4.5 20 2 2000 2001 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Rautakirja / Key developments • Performance at Finnish-based R-kiosks was at 2000 levels, Estonian-based R-kiosks and Veikkausrasti improved. • Letter of intent signed with four leading Latvian publishers to launch a joint press distribution company lapsed in September. • Rautakirja increased its holding in Narvesen Baltija to 50%. Lehtipiste aims to develop press distribution in Latvia in cooperation with Narvesen and local publishers. • Estonian multiplex exceeded targets. • Finnkino signed a letter of intent in July to acquire 90% of a Lithuanian cinema operator. The transaction was completed in September. • Ferete and Fintoto signed an agreement to launch Fintoto’s products via Ferete’s Hyvä Veto Internet service in summer 2002

Projection for 2001 • Full-year net sales projected to increase to € 680 million • Overall result expected to better than last year's (incl. sale of Narvesen ASA shares)

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Rautakirja Operational indicators 1.1-30.9 *)

2001 2000

Customer volumes in kiosk operations, thousands 61,643 65,086 Customer volumes in bookstore operations, thousands 4,300 4,267 Customer volumes in cinemas, thousands 2,371 2,852 Number of magazines sold, thousands 103,185 103,857

*) Outlets in Finland

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 SanomaWSOY in 2001 • We are now a major European magazine publisher following the CIG acquisition • CIG integration – integration process – impact analysis • A challenging year – cost control – investment-critical – growth and profitability

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3 Outlook for 2001

• Net sales are projected to increase by nearly 20%. Comparable growth will be around 3%. • Operating profit is expected to be around a fifth higher than in 2000. Comparable growth will be clearly below 2000. • CIG (Sanoma Magazines) will be integrated with the Group in Q4: – Q4 traditionally strong for CIG in terms of net sales and operating profit – Goodwill amortisation and financing costs will have a downward impact on CIG’s profit before extraordinary items

Y/Kalvot/Jaana/kalvot/hs01/interimreportQ3