Annual Report 2003

Home , Aftenposten, Sandrew Metronome, Scanpix, Verdens Gang

ANNUAL REPORT 2003 >>02 Main Events >>19 Social responsibility >>30 Newspapers >>53 Schibsted Eiendom >>03 Key Figures >>20 Statement of the >>40 TV, Film & Publishing (Property >>04 The Schibsted Group Election Committee >>48 Business Management) >>05 President & CEO >>21 The Tinius Trust Development >>54 Articles of Kjell Aamot >>22 Focus on Newspaper >>49 Management Association >>06 Business Areas >>24 Focus on Mobile Development >>55 Annual Accounts >>10 The Board of phone >>50 Shareholder >>87 Auditor’s Report Director’s Report >>26 Focus on TV, Film & Information >>88 Company Structure >>16 Corporate Publishing >>52 Schibsted Finans >>89 Addresses Governance >>28 Focus on Internet (Finance) Tomorrow’s media society will be different from that of today. Anyone who doubts this needs only look at how young people use media. Their choices are forging the future direction. Schibsted follows this development closely. In this way, we are better equipped to exploit our strength as a leading media group in Scandinavia. >> 2 THE SCHIBSTED GROUP ANNUAL REPORT 2003 MAIN EVENTS

• avis1 cuts approx. 10 full-time jobs. duction of 925 new episodes of the • Knut L. Tiseth appointed Managing popular series Hotel Cæsar. Q 1 03 Director of Schibsted Trykk. • Establishment of European Works • Morten Kongrød appointed Chief Council (ESU) in the Group. Executive Officer of Sandrew • Sandrew Metronome renews coopera- Metronome. tion agreement with Warner Bros. • Kristin Skogen Lund appointed Chief • 20 Min Holding AG enters into agree- Executive Officer of Scanpix ment with tamedia for the sale of Scandinavia. Swiss operations by 1st quarter 2007. • Metronome Film & Television enters into agreement with TV 2 for the pro-

• 20minutos launched in Seville, with a • Aftonbladet’s online version shows its circulation of 50,000. first profit in June. Q 2 03 • Fish4, the largest UK player in online • New circulation record for VG in July, classified advertising, buys a 25-percent with 419,988 copies. stake in FinnTech. • Highest monthly circulation for • Tique celebrates its 20th anniversary Aftonbladet in July, with 475,000 with record issue. copies. • Schibsted achieves its best quarterly operating profit ever. • TV2 buys 24 percent of Kanal24. Schibsted’s indirect participating interest increases to 23 percent.

• Aftenposten moves to Biskop the fourth city in which the paper is Gunnerus gate 14 after 127 years in published. Q 3 03 Akersgaten. First newspaper produced • Eesti Meedia’s printing plant in Tartu, at the new premises on 10 June. Kroonpress, starts to print the • Aftenposten launches new morning edi- Norwegian Økonomisk Rapport. An tion with one section in tabloid format. agreement which can open up new • New readership surveys show that markets. 20minutos in Spain, with a circulation of • Aftonbladet launches Mediapost AS, 550,000 and 1.2 million readers, is with A-pressen and Orkla Media, which Spain’s largest free newspaper and the will compete with Norway Post for dis- largest newspaper in Madrid. tribution of media products. • 20minutos is launched in Saragossa • Schibsted achieves its highest ever 3rd with a circulation of 40,000, making this quarter profits.

• Hans Erik Matre appointed new Editor- • VG publishes pre-produced newspaper in-Chief of Aftenposten to succeed on Boxing Day for the first time. Q 4 03 Einar Hanseid who retires at the age of • VG, Aftonbladet and Svenska Dagbladet 60, after 10 years in the post. deliver their best results ever in 2003. • P.J. Anders Linder appointed as new • Svenska Dagbladet’s circulation tops Political Editor-in-Chief of Svenska 200,000 every month in 4th quarter. Dagbladet. • Decision to merge Schibsted’s • Aftonbladet Nya Medier launches online Norwegian book and magazine publish- payment services. ing companies under the name • Finnmer AB, which is controlled by Schibsted-Forlagene AS. Aftonbladet Hierta AB, acquires Swedish classified service blocket.se.

• Schibsted increases its stake in 20 Min Holding AG from 41 percent to 98 per- Q 1 04 cent. • Purchase of 67 percent of the shares in Lithuania’s largest magazine publisher Zurnalu Leidybos Grupe (ZLG). • Decision to change the format of the morning edition of Aftenposten to tabloid from January 2005. >> 3 THE SCHIBSTED GROUP ANNUAL REPORT 2003 KEY FIGURES

(NOK MILLION) 2003 2002 2001 2000 1999

Operating revenues 8 555 7 872 7 972 8 270 7 402 Operating expenses (7 422) (6 948) (7 309) (7 349) (6 703) Operating profit (loss) (EBITDA) 1 133 924 663 921 699 Depreciation and amortisation (354) (375) (391) (408) (401) Operating profit (loss) before goodwill and other revenues and expenses (EBITA) 779 549 272 513 298 Operating profit (loss) (EBIT) 701 494 56 537 172 Profit (loss) before taxes 681 271 (387) 950 114

Operating margin: EBITDA margin (%) 13.2 11.7 8.3 11.1 9.4 EBITA margin (%) 9.1 7.0 3.4 6.2 4.0 EBIT margin (%) 8.2 6.3 0.7 6.5 2.3

Profit ratio (%) 5.5 2.0 (5.4) 73 0.6 Equity ratio (%) 36.6 34.1 32.0 37.8 33.3 Return on equity (%) 21.5 7.6 (18.1) 24.2 1.8 Return on total assets (%) 11.3 5.8 (3.4) 14.6 3.5 Net interest bearing debt / EBITDA 0.7 1.1 2.1 1.3 2.2

EPS and EPS diluted (NOK) 6.92 2.26 (6.28) 8.78 0.61 Cash flow per share (NOK) 14.53 9.25 5.44 15.15 8.76 RISK per share 3.27 1.19 4.79 1.68 1.98

NEWSPAPERS Operating revenues 6 511 6 082 6 263 6 637 6 084 Operating profit (loss) (EBITA) 628 474 239 450 322 Operating profit (loss) (EBIT) 587 379 91 463 174 Operating margin (EBITA) (%) 9.6 7.8 3.8 6.8 5.3

ESTONIA Operating revenues 288 242 220 198 194 Operating profit (loss) (EBITA) 28 16 0 (20) (32) Operating profit (loss) (EBIT) 15 (2) (25) (39) (50) Operating margin (EBITA) (%) 9.7 6.6 0.2 (10.1) (16.3)

TV/FILM Operating revenues 1 258 1 131 1 107 1 076 709 Operating profit (loss) (EBITA) 66 26 52 78 32 Operating profit (loss) (EBIT) 50 10 26 66 8 Operating margin (EBITA) (%) 5.2 2.3 4.7 7.3 4.5

PUBLISHING Operating revenues 349 339 320 277 268 Operating profit (loss) (EBITA) 35 34 19 18 8 Operating profit (loss) (EBIT) 26 25 5 19 (8) Operating margin (EBITA) (%) 10.1 10.1 5.9 6.3 2.9

CIRCULATION Aftenposten morning edition, weekdays 256 600 263 000 262 632 276 429 284 251 Aftenposten Aften, afternoon edition, weekdays 155 400 163 900 167 671 175 783 180 497 Aftenposten, Sunday 232 900 234 700 229 857 235 441 236 995

Verdens Gang, weekdays 380 190 390 510 387 508 375 983 373 552 Verdens Gang, Sunday 314 730 314 422 317 051 313 261 307 863

Aftonbladet, weekdays 442 100 435 900 401 500 379 933 380 600 Aftonbladet, Sunday 489 400 489 800 468 000 454 917 475 100

Svenska Dagbladet, weekdays 184 600 184 600 172 945 175 771 178 100 Svenska Dagbladet, Sunday 194 600 194 300 185 816 190 041 193 700

ADVERTISING VOLUMES (COLUMN METERS) Aftenposten 66 152 60 366 60 735 61 599 55 311 Verdens Gang 7 489 7 186 7 416 7 690 7 326 Aftonbladet 11 281 9 638 9 930 10 054 12 274 Svenska Dagbladet 19 891 20 271 19 965 28 514 29 832

DEFINITIONS KEY FIGURES: Operating margin: EBITDA-margin Operating profit (loss) before depreciation and amortisation, goodwill and other revenues and expenses / Operating revenues EBITA-margin Operating profit (loss) before goodwill and other revenues and expenses / Operating revenues EBIT-margin Operating profit (loss) / Operating revenues

Profit ratio Net income (loss) attributable to majority interests / Operating revenues Equity ratio Equity / Total assets Return on equity Net income (loss) attributable to majority interests / Average equity excl. minority interests Return on total assets (Profit (loss) before taxes + interest expenses) / Average total assets EPS Net income (loss) attributable to majority interests / Average number of shares Cash flow per share (Profit (loss) before taxes + depreciation and amortisation +/- net changes in pensions +/- income from associated companies – taxes payable) / Average number of shares >> 4 THE SCHIBSTED GROUP ANNUAL REPORT 2003 THE SCHIBSTED GROUP

1839 Chr. Schibsteds Forlag 1996 Acquisition of Aftonbladet (publishing house) founded 1998 Acquisition of Svenska 1860 Christiania Adresseblad Dagbladet launched in Oslo, renamed 1998 Aftenposten in 1861 Investment in Eesti Meedia Group 1966 Takeover of VG 1999 Launch of the 20minutes 1989 Reorganisation from private free newspaper concept family company to a limited 1999 company and group Acquisition of Bladkompaniet 2000 1992 Listing on the Listing of Scandinavia Online Oslo Stock Exchange (SOL) 2001 1992 First TV and film investments Launch of 20minutos in Spain 2002 1995 First Internet and Launch of 20minutes in new media investments France 2003 1995 First investments in Estonia Acquisition of Blocket AB 1995 Acquisition of Metronome

Schibsted is one of the leading media groups in Scandinavia. The Group’s by having clear financial targets for operating margins, return on capital headquarters are in Oslo. Most of its operations are based in Norway employed and equity ratio. and Sweden, but the Group has operations in 11 European countries. From its establishment in 1839 until 1989, Schibsted was a family- Net operating margin EBITA 12 % owned newspaper and publishing house with operating revenues (1989) Return on capital employed 15 % of approx. NOK 2 billion, 2,000 employees and all operations located in Equity ratio 35 % (min. 25 %) Norway. The Group consisted of Aftenposten, VG and Chr. Schibsteds Long-term target for profitable organic growth in revenues: 7 % Forlag. In 1989, the Company was transformed from a private company to a limited company with a group structure. The Group was listed on the Oslo Stock Exchange in 1992. MAIN STRATEGY • Schibsted will strengthen and develop the traditional media, while Schibsted’s present activities relate to media products and rights in the seeking growth and development in its core areas. Building on the field of newspapers, television, film, publishing, multimedia and mobile strong position and competitive edge which the Group currently pos- services. The news, information and entertainment content are commu- sesses, Schibsted will also seek development and growth in new nicated in a variety of formats: paper, the Internet, television, cinema, media. video, DVD and wireless terminals (mobile telephones, PDAs etc.). The • Schibsted will exploit its position as a central content provider in con- Group has operating revenues of approx. SEK 8.5 billion and 4,690 nection with the major change processes permeating the media indus- employees, of whom 2,130 work in Norway. try. • Scandinavia will be regarded as Schibsted’s domestic market, but aims VISION for gradual internationalisation. “Schibsted’s vision is to be a leading Scandinavian media company, as a • Growth will come mainly from operations where the Group holds content provider for consumers and advertisers, irrespective their choice strategic control or has the potential to achieve such control within a of media” reasonable period (two to three years).

VALUE BASE Schibsted’s publishing tradition provides the value base for the KEY STATISTICS Company’s activities. Editorial integrity, impartiality, reliability and quality Operations in 11 countries: Norway, Sweden, Finland, Denmark, Estonia, are to be the keywords for the Group’s products. The Group’s expertise Switzerland, France, Spain, Latvia, Lithuania and Poland. is to be improved and enhanced, with the main emphasis on product development and productivity. Number of employees: 4 690 (Of which 2,560 outside Norway) OBJECTIVE Daily readers of the Group’s newspapers: 8,8 million1) A main objective is to ensure that the shareholders receive a competitive Daily circulation of the Group’s newspapers: 3,4 million1) return through a combination of an increase in the share price over time and direct dividends. This will be achieved through long-term growth and 1) including regional newspapers >> 5 THE SCHIBSTED GROUP ANNUAL REPORT 2003 PRESIDENT AND CEO

POSITIONED FOR GROWTH After a two-year focus on core operations and profitability, the Group achieved its best result ever, with an operating profit (EBITA) of NOK 779 million (549). This was achieved in a year which continued to bear the hallmark of recession in all our markets.

KJELL AAMOT PRESIDENT AND CEO

These good results help to turnover and good cost control. to the Group’s profitability. Both raised. This means that the net strengthen our financial flexibility Online classified operations, achieved record profits in 2003. operating margin (EBITA) require- and support the capability of real- through FINN.no, also continued ment, over one business cycle, ising our main strategy, which is to show strong growth in 2003. We are pleased to say that the has increased from 11 to 12 per- to strengthen and further develop FINN.no became the most prof- strategy of reinvesting some of cent. At the same time, we have the established media and seek itable of all the companies in the the value creation from traditional defined an ambitious long-term new growth in core business. Schibsted Group, with an operat- media companies in new media, target of seven percent for annu- The autumn strategy review ing margin of 32 percent. with great long-term growth al organic growth. confirms our intention to exploit potential, appears to have been the Group’s strong positions and Schibsted’s free newspaper, 20 successful. This strategy will be This is a demanding target, but competitive advantage, in order minutes, also finally made its continued with renewed vigour. if we consider the results and to seek development and growth breakthrough both in the reader- market positions at year-end, it in new media. ship and advertising markets in In recent years, corporate gover- is nevertheless realistic. It does, 2003. Revenue in the 4th quar- nance has attracted much atten- however, place great demands In many ways, 2003 was the ter was as much as 46 percent tion. It is one of Schibsted’s val- on the organisation, and for this year in which Schibsted’s ven- up on the same period in 2002. ues that its publishing traditions reason we have upgraded the ture into new media finally made Revenue growth continues in must form the basis of all activi- work on organisational develop- its breakthrough. Since the mid- 2004, as do the rising readership ties. This means that editorial ment. A separate department 1990s, the Group has worked figures, which are about to estab- impartiality, reliability and quality has been set up to coordinate consciously to use the traditional lish the newspaper as number must be the watchwords for all the work in management and media in its targeted investment one or two among the most-read the Group’s activities. With this in skills development in the Group. in the new online channels. news-papers in Switzerland, mind, we have found it appropri- Distancing itself from the world’s Spain and France. ate to describe the premises for We face considerable tasks in alternating doubt and belief in editorial corporate governance in the time ahead, but we have the future of the dot com mar- We were therefore delighted to the Group’s Annual Report. This never been better equipped to ket, Schibsted has worked inde- increase our exposure and strate- is continued in more detail in the meet the challenges. This applies fatigably to build positions in gic influence in the project by annual reports of the individual to our established market posi- this area. buying out the largest of our co- newspapers, which also give an tions, our financial conditions investors in 20 minutes in March insight into the editorial depart- and, in particular, our organisation During the year, the online edi- 2004. ments’ internal rules. and employees. tions of the tabloid newspapers strengthened their positions as Although Schibsted’s largest rela- In 2004, Schibsted’s priorities will So, the scene appears to be set the most-visited websites in tive growth is in online opera- continue to be increased prof- for an exciting development for Scandinavia. After several years tions, 20 minutes and our media itability, enhanced financial flexi- the Group, which will benefit our of negative results, these busi- commitments in Estonia, the bility and ability to act, in order to customers, partners, employees nesses were for the first time tabloid newspapers VG and meet any structural changes in and, of course, our shareholders. able to show positive operating Aftonbladet continue to be clearly the media market. In this regard, profits, due to strong growth in the most important contributors our financial targets have been >> 6 THE SCHIBSTED GROUP ANNUAL REPORT 2003 BUSINESS AREAS

NEWSPAPERS Schibsted owns Scandinavia’s two largest newspapers, VG in Norway and Aftonbladet in Sweden. Aftonbladet is also the largest Nordic newspaper. The Group also owns Norway’s second largest newspaper Aftenposten, the Swedish Svenska Dagbladet, the free newspapers avis1 and 20 minutes – and has ownership interests in the largest regional newspapers in Norway.

Schibsted’s international free newspaper concept 20 minutes, is pub- publishes Estonia’s two largest newspapers, SL Õhtuleht (50%) and lished in Switzerland (Zürich, Bern and Basel), Spain (Madrid, Postimees, five Estonian local newspapers, operates Estonia’s Barcelona, Seville and Saragossa) and France (Paris, Lille, Lyon and biggest printing plant, AS Kroonpress, and also owns 50% of Marseille). 20minutes is among the most-read newspapers in the Estonian Magazine Group, which publishes a number of periodicals areas where it is published and in Europe as a whole. In March 2004, and special-interest magazines. Schibsted online newspapers have Schibsted increased its shareholding in 20 Min. Holding AG from 41 achieved a leading position through their established brand names. percent to 98 percent. In Estonia, Schibsted has a majority stake in VG and Aftonbladet are the most-read online newspapers in Norway Eesti Meedia Group, the country’s largest media group. The company and Sweden respectively.

HIGHLIGHTS 2003 BUSINESSES

• Operating profit (EBITA): NOK 656 million, incl. Estonia Newspapers • Svenska Dagbladet, VG and Aftonbladet report their best ever Aftenposten AS 100 % operating profit, despite the continuing recession in the advertising Verdens Gang AS 100 % market. avis1 AS 100 % • Clear breakthrough for the free newspaper 20 minutes which Schibsted Trykk AS 100 % shows profitability Tidningstryckarna Aftonbladet Svenska Dagbladet AB 100 % • Online newspapers show positive results European Media Ventures AS 100 % • Aftenposten moves to Biskop Gunnerus gate in Oslo and launches Svenska Dagbladet Holding AB 99 % new morning edition with a tabloid section 20 Min Holding AG 98 % • 20minutos launched in Seville and Saragossa Scanpix Scandinavia AB 75 % • Continued success for FINN.no – number of unique users increas- Blocket AB 73 % es by 50 percent Aftonbladet Hierta AB 49 %1) • MediaPost AS established by Aftenposten with Orkla Media and Harstad Tidende Gruppen AS 49 % A-pressen. Adresseavisen ASA 32 % • 1st quarter 2004: Schibsted purchases the shares of Apax Stavanger Aftenblad ASA 31 % Partners and a group of Swiss investors in 20 Min Holding AG, Tidningarnas Telegrambyrå AB 30 % thereby owning 98 percent of the shares Fædrelandsvennen AS 25 % Bergens Tidende AS 24 % NTB AS 22 %

Estonia AS Kanal 2 100 % AS Eesti Meedia 93 %

Lithuania UAB Zurnalu Leidybos Grupe 67 %

1) Consolidated 100% in Schibsted’s accounts, as the Group has full financial and operational control. >> 7 THE SCHIBSTED GROUP ANNUAL REPORT 2003 BUSINESS AREAS

TV, FILM & PUBLISHING Schibsted is one of the leading Scandinavian media companies in the TV and film areas. The Group is the majority owner of Metronome Film & Television, the largest independent Scandinavian player in film and TV production, with subsidiaries in Sweden, Norway, Denmark and Finland.

Sandrew Metronome is a leading Nordic company within purchasing Internasjonale Bøker, Bladkompaniet and Svenska Förlaget form the and distribution of films for cinema, video, DVD and TV. The core of Schibsted’s publishing activities. Bladkompaniet is Norway’s Company also has extensive cinema operations in Sweden, Denmark leading publisher of paperbacks and a highly successful publisher of and Finland. Sandrew Metronome is involved in Scandinavian film comics. Schibsted also publishes a number of periodicals, including productions as a producer and investor, and collaborates extensively the interior design magazine Maison, the fashion magazine Tique and with international producers, such as Warner Bros. The Schibsted the financial journal Dine Penger. Schibsted has a 50% stake in the Group owns 33.34% of TV2, Norway’s largest commercial TV newspaper Dagens Medisin, which is targeted at healthcare channel. Chr. Schibsteds Forlag, founded in 1839, Schibsted professionals.

HIGHLIGHTS 2003 BUSINESSES

• Operating profit (EBITA): NOK 101 million TV/Film • Metronome Film & Television consolidates its position as the Metronome Film & Television AB 65 % largest independent TV producer in the Nordic region Sandrew Metronome AB 50 % • Sandrew Metronome achieves excellent results in film and video TV 2 Gruppen AS 33 % distribution, while cinema operations disappoint • Schibsted’s Norwegian publishing companies merge Publishing • Morten Kongrød takes over as CEO of Sandrew Metronome Bladkompaniet AS 100 % • 1000th episode of Hotell Cæsar produced Chr. Schibsteds Forlag AS 100 % • TV 2 Group strengthens its position as an electronic media group Dine Penger AS 100 % by purchasing 34 percent of the shares in Kanal24, the new nation- Schibsted Internasjonale Bøker AS 100 % al commercial Radio channel Svenska Förlaget AB 100 % Dagens Medisin AS 50 %

OTHER OPERATIONS BUSINESSES

Portal and content market operations are mainly carried out in the Schibsted Telecom AS 100 % newspapers and under their brands. This fits in with the strategy of Bokkilden AS 100 % greater use of existing brands in new markets and new distribution Biljett Direkt Ticnet AB 34 % channels. In addition to the newspapers’ online operations, Schibsted also has operations in the mobile services and online bookstore segments.

Participating interests as of 31.03.2004 >> 8 SCHIBSTED ANNUAL REPORT 2003 aftenpostena.no kanal2.ee

1 aftonbladet.se vg.no aftenposten.no svd.se

345 6 scanpix.no eestimeedia.ee 20minutos.es 20minutes.fr 20minutten.ch

7 8 9 vg.no tv2.no metronome.se

1011 12

1. Aftenposten. Norway’s largest morning newspaper. 2. Kanal2. Estonia’s second-largest TV channel. 3. VG WAP. News and more on your mobile. 4. Aftenpostens WAP. News on your mobile. 5. SvD WAP. News on your mobile. 6. Aftonbladet.se. Sweden’s most visited website by far. 7. SCANPIX. Scandi- navia’s leading picture agency. 8. Ajakirjade Kirjastus. Publishes magazines in Estonia. 9. 20 minutter. Free newspaper, published in three countries. 10. VG Nett. Norway’s leading website 11. TV2.no. TV2’s website. 12. Metronome. The Nordic Region’s largest independent TV production company. postimees.ee sch-ib.no

13 14 tv2.no vg.no

15 svd.se

17 16 finn.no dinepenger.no metrome.se

20 18 19

13. Postimees. Estonia’s leading quality newspaper. 14. Schibsted Internasjonale Bøker. Sells foreign language books in Norway. 15. TV2. Norway’s largest advertising-financed TV channel. 16. SvD.se. Svenska Dagbladet’s online newspaper. 17. VG. - Norway’s largest newspaper. 18. FINN-no. The leading marketplace for online classified advertising. 19. Dine Penger Online. Online edition of Dine Penger. 20. Hotell Cæsar. One of Metronome’s many TV productions. svd.se dinepenger.no

21 sandrewmetronome.dk sandrewmetronome.no sandrewmetronome.fi bladkompaniet.no

23 tique.no bladkompaniet.no tique.no sandrewmetronome.se

25 26 27

21. Svenska Dagbladet. Leading Swedish morning newspaper, enjoying strong growth. 22. Dine Penger. Norway’s largest financial magazine. 23. Bladkompaniet. Large publisher of magazines and books for entertainment and information. 24. Sandrew Metronome. Sells films on video and DVD. 24. Sandrew Metronome. Film production, distribution, cinema management and licensees. 25. Tique. Leading fashion and trend magazine. 26. Maison. Well established Norwegian interior design magazine. >> 9 SCHIBSTED ANNUAL REPORT 2003 schibsted-forlag.no aftonbladet.se

28 29 bokkilden.no aftenposten.no

30 31 www.inpoc.no aftonbladet.se

32 20minuten.no 20minuten.se 20minuten.fr

28. Aftonbladet WAP. - Read Aftonbladet on your mobile! 29. Chr. Schibsteds Forlag. Leading non-fiction publisher; publishes books on a wide range of topics. 30. Aftenposten.no. Aftenposten’s online newspaper with increasing support. 31. Bokkilden. Norway’s leading purely online bookstore. 32. Inpoc. Mobile services for young people. 33. 20 minutter. Online version of the free newspaper. 34. Aftonbladet. The largest newspaper in the Nordic Region. >> 10 THE SCHIBSTED GROUP ANNUAL REPORT 2003 THE BOARD OF DIRECTORS’ REPORT

OLE JACOB Trondheim Trafikkselskap. Mannesmann Telekom nalist with Aftenposten, (1993-95). Legal Adviser Board Member of the SUNDE Chairman of Norske (1999-2000). Has resigned Managing Director of with Edwards & Angell, Oslo Union of Graphical Canada, Pan Asia Paper from his Board position. Verdens Gang and Boston (1992-93). Legal Workers. Deputy CHAIRMAN OF THE BOARD and Norwegian Wood Aftenposten. Chairman of representative in the law Representative of the Executive Chairman of Pulp Industry Branch Norwegian Federation of firm Schjødt, Oslo (1991- Committee of the Formuesforvaltning ASA. MONICA Association. Board Newspaper Employers for 92). Former Member of Norwegian Union of Founded Industrifinans Member of PIL, NHO and CANEMAN several terms 1972-87. the Supervisory Board of Graphical Workers. Forvaltning ASA (1983), of CEPI. Former Chairman of Former Vice-President SE- Chairman of the Board of Den Norske Bank (1998- which he was Managing Sparebanken Midt-Norge, Banken (1997-2001). Schibsted for several 2004). Director until June 2000. CATO A. the Norwegian Post Office Employed by SE-Banken terms. Former Chairman of Former Consultant with Services and Norwegian from 1977. Education: the Board of Fædrelands- HOLMSEN McKinsey & Co. (1980- HILDE HARBO State Railways. Stockholm School of vennen, Board Member Chairman and Partner of 83). Board appointments Degree in political science. Economics (1976). and Chairman of the FSN Capital. Formerly include the Tinius Trust Employed by Aftenposten Directorships in Svenska Board of Verdens Gang Deputy Group CEO, and Aftonbladet AB. GUNNAR Dagbladet AB, SJ AB since 1985. Head of Scancem AB and CEO, and Board Member of Politics, News Editorial NORDBY (Swedish Railways), Aftonbladet AB. Scancem International BERIT BJERG Poolia AB, Nocom AB, Staff, Aftenposten. ANS. MSc Eng ETH Employed with Formerly Deputy Member Employed by Aftenposten Frango AB, Resco AB, Zürich 1964. Further Aftenposten AS since ALEXANDRA of the Board of Schibsted AS since 1987. Consul- Xponcard AB, EDB Studies: University of 1955. General Secretary (1990-93), Deputy Leader tant in the Advertising Business Partner ASA, BECH GJØRV Newcastle and IMEDE of Aftenposten’s Printing of Aftenposten’s Editorial Department, Real Estate Citymail AB, Investment Executive VP Organi- 1973. Chairman of Union. Member of the Staff Union, Member of market. Media Consultant AB Öresund, sation and Competence, Eiendomsspar AS, Fesil National Committee of the Board of the Oslo BI Norwegian School of Akademikliniken AB and Norsk Hydro ASA. ASA, Grieg International the Norwegian Union of Union of Journalists, Vice Management (2002). Interverbum AB. Director Human AS/Grieg Shipping AS and Graphic Workers. President of the Press General Secretary of Resources Norsk Hydro Optimera Gruppen AS. Corps of the Norwegian Aftenposten’s Union of (2000-01). Assistant Board Member of LARS M. BERG TINIUS Parliament. Commercial and Office Director of Strategy & Aftenposten AS, 20 Min Independent investor, NAGELL- Employees since 1992. Organisational Develop- Holding AG, Eksportfinans consultant and Board ERICHSEN, ment, Hydro Automotive HÅKON ASA, NorgesGruppen Member of Telefonica DEPUTY CHAIRMAN OF Structures (1998-2000). ASA, Kongsberg JAN REINÅS Moviles, Eniro, Ratos, Net KJERNSMO THE BOARD Company Secretary of Automotive ASA, Jamo Former President and Typographer. Employed Insight, Anoto and a num- Master of Science (1959 Norsk Hydro ASA, Oslo AS, Johan G Olsen As CEO of Norske Skog and by VG since 1991. ber of non-listed compa- LSE). Board Member of (1995-98). Lawyer with and a number of other SAS Norge. Former CEO General Secretary of VG’s nies. President & CEO Aftenposten. Former jour- Norsk Hydro USA, Inc. companies. of Fosen Trafikklag and Telia (1994-98). Head of Graphical Workers’ Union. >> 11 THE SCHIBSTED GROUP ANNUAL REPORT 2003 THE BOARD OF DIRECTORS’ REPORT

In a demanding market, Schibsted in 2003 achieved the highest operating profit in its history. The good result is mainly explained by a dedicated focus on improving the Group's core activities.

Schibsted is one of the leading and is a market leader in the The business area, Publishing, In 2003, financial items amounted media groups in Scandinavia. online purchase and sale of cars achieved an operating margin of to NOK -54 million (-156 million). The Group’s headquarters are in and miscellaneous items in 10.1 percent, the same margin as Lower interest rates, as well as a Oslo. Most of its operations are Sweden. This acquisition in the record year 2002. reduction in interest bearing located in Norway and Sweden, strengthens and complements debt, resulted in lower interest but the Group has operations in Schibsted’s position in online clas- CONTINUED OPERATION expenses in 2003. The Group’s 11 European countries. In 2003 sified advertising services in In accordance with § 3-3 of the share portfolio was written down Schibsted has seen the effects of Sweden. Accounting Act, the Board con- by NOK 10 million (NOK 59 mil- its 2002 strategy, which focused For the Newspapers business firms that the assumption regard- lion). Schibsted has changed its on improving the Group’s core area, profitability improved in ing continued operations for the accounting practice regarding for- activities. Profitability has 2003. The Group’s subscription Group is fulfilled. The 2003 finan- eign currency in 2003. Currency improved within all business newspapers experienced growth cial statements have been pre- gains and losses related to liabili- areas, and the Group achieved in retail and brand advertising. pared on this assumption. The ties, which secure investments an EBITA margin of 9.1 percent However, for Aftenposten, the basis for the assumption is the in foreign units, are reported as (7.0 percent) for the year. The progress within the classifieds Group’s long-term strategic prog- translation differences, which are operating profit of NOK 779 mil- market is still weak. Svenska nosis. The Group is in a sound entered under equity. The change lion is the highest in Schibsted’s Dagbladet achieved its best financial position. in accounting practice implies a history. The good results were operating profit since being in considerable reduction in curren- achieved in spite of continued Schibsted’s ownership. The EXPLANATION OF THE ANNUAL cy gains and losses reflected in weakness in the advertising Group’s single copy sales news- ACCOUNTS the Group’s financial accounts. market, particularly in classified papers maintained their strong In 2003, the Group’s operating The accounts for previous peri- advertising. In 2003 the Group positions andboth VG and revenues were NOK 8,555 mil- ods have been revised corre- further improved its financial Aftonbladet reached new circula- lion (NOK 7,872 million). NOK spondingly. The change does not flexibility, and is well positioned tion records in 2003. The single 200 million of the increase was affect Group equity. for continuing growth in line copy sales newspapers’ advertis- due to the weakening of the During October 2003, the with the Group’s strategy. ing revenues grew by more than Norwegian krone against the Group issued bonds at a total of Per 3 March 12 percent com- Swedish krona. The operating NOK 900 million on the Norwegian 2004, Schibsted pared with 2002. profit (EBITA) showed an bond market, in order to compen- increased its share- ” The acquisition 2003 was improvement from NOK 549 mil- sate for the reduced borrowing holding in 20 Min one of the best lion to NOK 779 million. The limit related to existing credit Holding AG from 41 strengthens years ever for the progress was due to better facility. The credit facility amount- percent to approxi- Schibsted’s TV/ Film business results from all of the Group’s ed to USD 180 million as of mately 98 percent. position” area. The different business areas. The net effect of December 2003, and is due for For the increased business units the weakening of the Norwegian payment in October 2004. During shareholding, improved their krone was positive, adding approx. the spring 2004, the facility will Schibsted is paying between profitability considerably in 2003. NOK 10 million to the operating be replaced by a new facility. EUR 50 million and EUR 55 mil- Increased activity has charac- profit. At the end of 2003, interest- lion, depending on the final terised the year for the Group’s Other revenues bearing debt details regarding participation production companies. However, and expenses of “The Group totalled NOK 1.6 by the investors in loans and fur- the production of commercials is NOK -17 million billion (1.7 billion). ther financing. Within the end of still at a low level. The distribution (8 million) relate to issued bonds Net interest bear- March, the Swiss investors will business in Sandrew Metronome restructuring in at a total of ing debt has been have to decide whether they achieved its best annual result Norway reduced to NOK want to participate. ever. For the year as a whole the and Sweden. NOK 900 million” 733 million (NOK During the autumn 2003 cinema business in Sweden In 2003, 1,002 million), in Schibsted acquired, through reduces operating profits. For TV income from asso- spite of repurchase Finnmer AB, 100 percent of the 2, a strong first half of the year ciated companies was NOK 34 of own shares, payment of divi- shares in the Swedish company was followed by a weaker million (NOK -67 million). 20 min- dend in May and the acquisition Blocket AB for SEK 183 million. autumn. utes, TV 2 and the regional of Blocket in Sweden. Total liq- Blocket runs the classified adver- papers achieved better results uidity reserves for the Group tising service www.blocket.se, than in 2002. totalled approx. NOK 2.0 billion >> 12 THE SCHIBSTED GROUP ANNUAL REPORT 2003 THE BOARD OF DIRECTORS’ REPORT

at the end of 2003. Profit before (NOK 4.7 billion), whereof the has started using the free paper, 67 percent. The circulation on tax in 2003 was NOK 681 million Group’s printing plants amounted avis 1, as a strategic tool for weekdays decreased compared (NOK 271 million). Tax expenses to NOK 1.7 billion. Investments in increasing the reach of real- with 2002, whilst the Sunday in 2003 amounted to NOK 197 shares and associated companies estate advertisements. This tool edition showed a minor increase. million (NOK 115 million). Due to were booked at NOK 0.9 billion. has been well received by estate The decrease on weekdays was differences between the basis The market value of the portfolio agents. As expected, due to a slight fall in the market for income taxes and profit (loss) exceeds the book value. The Aftenposten’s circulation fell for as a whole in recent years. In before taxes, the Group’s tax Group's goodwill reflected in the all editions compared with 2002. 2003 VG was for the first time expenses may deviate from the balance sheet amounted to NOK This corresponds with the trend published on Boxing Day, which nominal Norwegian tax rate of 0.8 billion at the end of 2003. in the market, where the major- reduces the average circulation 28 percent. These differences The increase from 2002 was due ity of subscription newspapers on weekdays. are primarily related to amortisa- to the acquisition of Blocket AB. experience a decline. In 2003 VG delivered its best tion of goodwill, income from The goodwill reflected in the bal- As a consequence of con- operating profit ever, as a result associated companies and loss- ance sheet can be justified for all tinued decreasing revenues in of increased revenues from es in foreign subsidiaries for the investments on an individual Aftenposten, extensive new advertising, increased price per which no deferred tax benefit is basis. measures are needed on the newspaper and good cost con- recognised in the balance sheet. In accordance with the autho- cost and revenue sides beyond trols. As from 1 November 2002, Due to increased profits, risation from the Annual current programme. At the VG increased its price from NOK reduced losses in foreign sub- Shareholder’s Meeting, same time, work will be per- 9 to NOK 10 on weekdays. VG sidiaries and positive contribu- Schibsted ASA has repurchased formed in order to improve the maintained its solid position as tions from associated compa- 1,490,518 shares, of which operating margin significantly market leader. In July 2003 VG nies, the Group’s tax rate was 405,000 were bought in 2003. over the next two to three set a new circulation record of reduced to 29 In the 3rd quar- years. The measures taken will 419,998 weekday copies. In percent in 2003. ter, 47,482 be determined by the product 2003, advertising revenues from The Schibsted “Schibsted has shares were and readership strategy selected the paper edition increased by management has sold to the trust to strengthen 13 percent, to been granted purchased Schibsted- Aftenposten’s posi- NOK 384 million. options on 1,490,518 shares” ansattes tion in the reader “More than VG Nett devel- Schibsted shares Aksjekjøp at a market. The meas- 2, 5 million unique oped in a positive for the years price of NOK ures will be direction in 2003. 2000-2003. In periods the market 100 per share, in connection announced in con- visitors during Revenues price has exceeded the strike with offering employees the junction with the one month” increased by 34 price and, as a consequence, opportunity to buy shares at a publication of the percent, whilst the options have had a dilutive discounted price. 1st quarter of 2004 the operating prof- effect on earnings per share. The The Group’s equity ratio was accounts. it was NOK 5.8 million (loss of dilutive effect is immaterial, 36.6 percent at the end of 2003 In 2003 Aftenposten moved NOK 5.4 million). 2003 was the hence earnings per share and (34.1 percent), of which own from Akersgaten to more suit- first business year in which a earnings per share diluted are shares totalled approx. two per- able premises in Biskop profit was achieved for the year both NOK 6.92 (NOK 2.26). cent. The proposed dividend allo- Gunnerus Gate 14. The move did as a whole. This shows that the In 2003, Schibsted invested cation in 2003 is NOK 3.00 per not cause any significant produc- online newspaper is beginning to NOK 263 million in tangible and share (NOK 2.00). tion problems. reap the benefits of its position intangible fixed assets and NOK There was a great deal of as the leading online paper in 209 million in shares, of which NEWSPAPERS excitement surrounding the terms of readers. In October, VG the investment in Blocket AB The Newspapers business area introduction of the new tabloid Nett became the first website in amounted to NOK 170 million improved it’s profitability in 2003, supplement in Aftenposten. A Norway having more than 2.5 (SEK 183 million). and operating profit (EBITA) reader survey carried out shortly million unique visitors during one In 4th quarter of 2003, 20 Min amounted to NOK 628 million after the launch revealed that the month. The online newspaper’s Holding AG sold 49.5 percent of (NOK 474 million). The improve- target group, women and young advertising revenues increased the shares in the Swiss operation ment is mainly related to the people, were positive towards by 39 percent, roughly in line to Express Zeitung AG based on results of VG, Aftonbladet and the new product. It is still too with market growth as a whole. an agreement entered into in the Svenska Dagbladet. early to say what effect the With an operating profit 1st quarter of 2003. Remaining Aftenposten maintained its launch will have on advertising (EBITA) in 2003 of SEK 12 million shares are agreed sold to position and experienced a revenues. (loss of SEK 49 million), Svenska Express Zeitung AG within progress within both the brand In 2003 Einar Hanseid decided Dagbladet achieved its best 1st quarter of 2007. The price to and retail markets. However, the to use his contractual right to operating profit since being be paid for the remaining 50.5 progress within the classified retire from his position as Editor- acquired by Schibsted. The posi- percent of the shares is depend- advertising market is still weak. in-Chief after reaching the age of tive result was achieved in a ent upon results in 2005 and The market for vacancy advertis- 60, and after 10 years in the job. market where the business con- 2006. ing was weak during 2003. Hans Erik Matre (48) took over ditions for advertising were poor. At the end of 2003, total Within the market for private as new Editor-in-Chief of The is increasing its market assets reflected in the group bal- cars there is an increasing trend Aftenposten after Hanseid on share, and circulation is increas- ance sheet amounted to NOK to go online, where FINN.no has 1 January 2004. ing in the Stockholm region. This 6.9 billion (6.4 billion). Fixed a strong position. The real-estate VG maintained its strong region is the newspaper’s priority assets made the largest account, market showed stable volumes position in 2003, with a market market. During the autumn amounting to NOK 4.8 billion compared with 2002. Aftenposten share for casual sales exceeding 2003, the large estate agents in >> 13 THE SCHIBSTED GROUP ANNUAL REPORT 2003 THE BOARD OF DIRECTORS’ REPORT

Stockholm completed the negoti- advertising revenues tripled in Nordic TV channels enhanced autumn, and the other commer- ations with the large newspapers 2003 compared with the launch their programming with produc- cial channels gained market regarding the use of advertising year 2002. A launch of 20min- tions from the independent pro- shares at the expense of TV 2. channels for real-estate adver- utes in Lille, Lyon and Marseille duction sector, and there was Increased advertising revenues, tisements. A non-exclusive is planned during 1st quarter of high demand for the Metronome a better financial result and a agreement was signed with 2004. Group’s programme concepts. positive income from TV Norge Metro. In 2003 SvD revenues Strong revenue growth from Going into 2004, the order situa- contributed to the TV 2 Group from real-estate advertisements the newspapers’ Internet activi- tion for the Metronome Group’s increasing its profit after tax from in the Stockholm region amount- ties resulted in an operating prof- production companies is good. NOK 166 million in 2002, to NOK ed to approx. SEK 100 million. it of NOK 51 million for the Metronome Film & Television 188 million in 2003. The operat- Various measures will be imple- online newspapers in 2003 (loss is the Nordic ing profit (EBIT) mented to compensate for the of NOK 6.7 million). Revenues region’s largest was NOK 195 possible loss of advertising rev- increased by 44 percent. Growth independent pro- “Several million (NOK 208 enues, striving for a break even was due to increased revenues duction company companies million). Figures profit in 2004. in all the online newspapers, as for TV programmes, from Aftonbladet well as the Group’s drama series, fea- with all time Mediebyråenes developed positively “Aftonbladet acquisitions to ture films and com- high results” Interesse- in 2003 in terms of strengthen its posi- mercials, with organisasjon both circulation and still largest in tion in classified turnover twice as (MIO) show that advertising. 2003 the Nordic advertising servic- high as its nearest competitor. For the media agencies arranged was the best year es in Sweden. In the year, the Metronome Group’s advertising worth a total of NOK in Aftonbladet’s region” 2003 FINN.no turnover increased by seven per- five billion in 2003, an increase history from a strengthened its cent, to SEK 801 million. The of 4.9 percent over 2002. financial point of view. position as Norway’s decidedly operating profit (EBITA) at the end At the end of July 2003, TV 2 Aftonbladet maintained its posi- leading online marketplace for of 2003 was SEK 56 million (SEK agreed to buy 34 percent of tion as the Nordic region’s largest real-estate, recruitment and cars. 15 million). The order situation in Kanal 24 through a private place- newspaper. Aftonbladet still has a Operating profit (EBITA) for the the market for production of new ment. TV 2 has an option to strong position compared with Finn Group was NOK 43.6 mil- commercials was unsatisfactory. increase its shareholding to 51 Expressen/GT/ Kvällsposten, and lion (NOK 26 million), which rep- For Sandrew Metronome, percent. Through TV 2’s agree- its circulation was approx. resents an operating margin of 2003 was characterised by good ment, Schibsted’s indirect share 90,000 ahead of its competitor 32.3 percent. progress in the areas of film and of interest in Kanal 24 increased during 2003. Aftonbladet main- video distribution. The 2003 from 18 percent to 23 percent, tained its market share of 56 per- ESTONIA operating profit was the highest and will increase to 26 percent if cent, and its circulation was at The activities in Estonia contin- in the company’s history. The TV 2 exercises its option. its highest for 27 years. ued to show positive develop- Group’s distribution of feature In 2003 the Publishing busi- According to IRM’s prognosis, ments. Print media progressed films on video and DVD is going ness area had an operating profit the evening newspapers’ adver- well. New investments consider- very well, and showed good (EBITA) of NOK 35 million (NOK tising revenues increased by ably improved the situation at progress compared with 2002. 34 million). The operating margin 11.9 percent in 2003. The corre- the Group’s printing plant, The Nordic video market grew was 10.1 percent (10.1 percent). sponding increase for Kroonpress. This is expected to by 12 percent in 2003, and The operating revenues of Aftonbladet was 13.2 percent have a positive impact in 2004. Sandrew Metronome maintained Schibsted’s publishing companies (incl. Sportmagasinet.) The advertising market for its market share of approx. 20 grew by 3 percent in 2003, to In the autumn of 2003 Postimees was characterised by percent. The DVD format grew NOK 348 million. Several com- Schibsted acquired, through a price war and a weak market, by 60 percent in 2003, while the panies within the group delivered Finnmer AB, the shares in the whilst subscription revenues and VHS format declined. The cine- all time high results in 2003. classified advertising service readership numbers showed ma business, particularly in Effective from 1 April 2004, www.blocket.se. This acquisition solid increases. Other print Sweden, had a negative impact Schibsted’s Norwegian publishing strengthens and complements media in the Group are develop- on Sandrew Metronome’s result. companies will be merged into the Schibsted’s position within clas- ing in line with the market. Ticket sales were down 11 per- company Schibsted-Forlagene AS. sified advertising services. The second half of 2003 cent compared with 2002. In 4th quarter of 2004 20 min- showed no signs of positive Solutions for the Group’s cinema OTHER OPERATIONS utes (incl. France) reached break- developments in the advertising business are under preparation in Other operations had an operating even for the first time. market for electronic media. The order to improve profitability and profit in 2003 of NOK 22 million The Swiss business achieved a advertising revenues of the TV reduce risk. Morten Kongrød, (loss of NOK 1 million). The positive operating profit for the channel Kanal 2 increased by previously a director in improvement was due to year. Revenues increased by 43 EEK 28 million in 2003, and the Schibsted’s TV, Film & Publishing increased royalty revenues for percent, while costs remained channel reduced its loss consid- business area, was appointed as Schibsted Finans, and losses stable. The Spanish business erably from 2002. Intensified new CEO of Sandrew reduced to NOK 6 million (NOK increased advertising revenues competition resulted in large pro- Metronome as of 1 March 34 million) for Telecom. The posi- by 46 percent in 2003. A new gramming costs, and the chan- 2003. tive effects were counteracted reader survey shows that 20 nel was unable to deliver a profit For TV 2, a strong first half of to a certain extent by reduced minutes, with 1.427 million read- for the year as a whole. the year was followed by a rental revenues for Schibsted ers, is ahead of Metro, and is slightly weaker than expected Eiendom due to the sale of prop- only beaten by Spain’s largest TV, FILM & PUBLISHING autumn. The competition on TV erties in 2002. The royalty rev- newspaper El Pais. In France Throughout 2003 the leading was strong throughout the enues from VG to Schibsted >> 14 THE SCHIBSTED GROUP ANNUAL REPORT 2003 THE BOARD OF DIRECTORS’ REPORT

ASA and from Aftenposten to The prospects for Metronome 2002. 2,560 worked outside place within closed systems. Schibsted Finans AS ceased Film & Television are considered Norway. Sickness absence made Most waste is sorted at source. 31 December 2003. to be good. The order situation approx. six percent of the At Schibsted Trykk, 98 percent of for TV production is good for the Group's total working hours. all waste is sorted at source. FUTURE PROSPECTS 1st half of 2004. The significant At the Group’s printing plant in Agreements with approved In Norway the market for brand growth within the DVD market is Nydalen, measures have been transport companies ensure that advertising shows a positive expected to continue in 2004. implemented to reduce the high special waste is transported trend. Furthermore the market Per 3 March 2004, Schibsted sickness absence. Absence has safely. Normal operations do not for vacancy advertising shows increased its ownership in 20 Min been reduced by 2.2 percent, involve any danger of discharges signs of a slight improvement, Holding AG from 41 percent to but is still 17 percent. Further to the ground, atmosphere or while a slight decline from the app. 98 percent. Following these measures are implemented in water from the printing plants. high level in 2003 is expected transactions, 20 Min Holding AG order to reduce absence to a Environmental work is an within the real-estate market. will own 100 percent of the normal level. important area for the printing As a result of continuing Spanish operations, 50.5 percent Of the companies in the plants. Trough a cleaning declines in revenue at of the Swiss operations, and 16 Group, it is particularly the opera- process, Schibsted Trykk has Aftenposten, extensive new percent of the French operations. tions at the printing companies reduced the amount of waste measures are needed on the Schibsted currently owns 34 per- that involve a certain risk of related to humidity by 85 percent cost and revenue beyond current cent of the French operations injury. At Schibsted Trykk nine to 38 tonnes. Tidningstryckarna programme. At the same time, directly, giving Schibsted a total workplace injuries resulting in has reduced the use of deter- work will be performed in order control of 50 percent of the absence were recorded during gents by 90 percent. Kroonpress to improve the operating margin French operations. From 2003. These were primarily possesses a ISO certification for significantly over the next two to takeover, this purchase will lead minor cuts and bruises. At environmental processing. three years. to a full consolidation of 20 Min Tidningstryckarna no workplace In total the three printing The measures taken will be Holding AG, and the operations in injuries resulting in absence plants used 110,000 tonnes of determined by the product and France will be pro rata consolidat- were recorded, while at paper, 2,170 tonnes of printing readership strategy selected to ed (50 percent). Kroonpress two minor accidents ink and approx. 35 GWh of elec- strengthen Aftenposten’s posi- In 2004, 20 minutes will con- resulting in personal injuries tric power in 2003. This is about tion in the reader market. The tinue to focus on profitability in were recorded. No serious acci- the same level as in 2002. measures will be announced in existing operations. During 1st dents were recorded at the print- The Group’s newspaper com- conjunction with the publication quarter of 2004 a launch of ing plants. panies in Norway and Sweden of the 1st quarter of 2004 20minutes in Lille, Lyon and The Schibsted arrange for accounts. The measures may Marseille is planned. In Spain Group stresses the unsold news- result in provisions being re- and Switzerland there are expec- importance of having “43 percent papers to be flected in the 2004 financial tations related to the positive highly qualified per- returned and accounts. In 2004 the casual readership figures, which should sonnel and therefore foreign sold for re- sales newspapers are expected result in greater market shares offers competitive investors” cycling. to maintain their strong posi- and increased advertising prices. terms of employment The Group’s tions, with stable, high circula- At the same time, the advertising as well as scope for other operations tions. markets are expected to improve development. The working envi- hardly pollute the environment. The advertising market in slightly throughout 2004. ronment is considered to be Sweden is showing signs of a In 2003 the Group further good. The Board of Directors EQUAL OPPORTUNITIES slight improvement, with the improved its financial flexibility, wishes to thank all employees Schibsted relies on talent, experi- exception of the vacancy market, and it is well positioned for conti- for their untiring efforts through- ence and competent managers where an improvement is nued growth. Based on a review out the year and for their ability and employees. It is essential to expected towards of the Group’s and willingness to participate in the Group’s continued success the end of the year strategy, growth is restructuring, resulting in more that women are given the same or at the beginning “The importance expected to be secure jobs and improved prof- opportunities for development as of 2005. of having highly achieved both itability in the periods to come. men. This is an important part of The growth organically and the Group’s social responsibility within Internet qualified from acquisitions. EXTERNAL ENVIRONMENT and an important basis for the advertising is personnel” The Group’s strong The newspapers are produced group’s continued commercial expected to remain position and com- digitally up to the point where success. high in 2004. There petitive advantage they are printed, which means Several of the Group’s sub- are expectations related to the will make the basis for further that the production process has sidiaries are working actively at acquisition of the classified growth, and acquisitions will a very limited impact on the envi- ensuring that men and women advertising service complement and strengthen ronment. Schibsted owns three receive equal pay, equal access www.blocket.se. During the existing positions. The growth newspaper printing plants: to management jobs and equal year, FINN renewed its agree- strategy and new projects will be Schibsted Trykk in Oslo, conditions in connection with ment with Eiendomsmegler- assessed against the Group’s Tidningstryckarna in Stockholm recruitment and development gruppen, which holds approx. 40 financial targets. and Kroonpress in Tartu, Estonia. activities. VG’s trainee pro- percent of the real-estate market A newspaper printing plant is a gramme for journalists, which in Norway, which implies that all WORKING ENVIRONMENT relatively environmentally neutral was established in 2003, is one of its real estate advertisements The Schibsted Group had 4,690 industrial operation. The produc- of many examples. 30 percent of will be placed on www.finn.no employees at year-end, com- tion processes that include the Aftenposten’s management posi- for the next three years. pared with 4,760 at the end of use of polluting substances take tions are currently occupied by >> 15 THE SCHIBSTED GROUP ANNUAL REPORT 2003 THE BOARD OF DIRECTORS’ REPORT

women, and the newspaper is holder, Tinius Nagell-Erichsen, con- Profit for the year...... 205 tain the Group’s financial flexibility. working at increasing this propor- trols 26.1percent of the Schibsted Proposed allocation: A large one-off dividend, or going tion. The Group is working sys- shares through Blommenholm Allocated dividend...... 203 actively out in the market with an tematically at ensuring gender Industrier AS. Transferred to other equity...... 2 offer to buy shares, is therefore balance, through measures such SCHIBSTED ASA not recommended. A significant as the development programmes Schibsted ASA is the parent com- Group contributions to subsidi- increase in dividend, combined run by the Group itself and pany within the Schibsted Group. aries total NOK 187 million. At with the possibility for repurchase Schibsted’s trainee programme. Schibsted ASA’s revenues consist 31 December 2003, the non- of own shares, is considered a Certain areas, for example the mainly of royalties from Verdens restricted equity amounted to suitable long-term way of printing operations, have tradi- Gang AS, while operating expens- NOK 950 million. maintaining a capital structure in tionally been very male-dominat- es relate to the ongoing opera- line with the financial goals. ed. tions of the Group administration. DIVIDEND When determining the divi- 2003 loss for Schibsted ASA As Schibsted was listed in 1992, dend, an increase has to be seen OWNERSHIP STRUCTURE AND amounted to NOK 45 million, the Board stated in relation to upon the Group’s strategy and SHAREHOLDER POLICY while profit before taxes amount- dividend policy that: growth potential, while, at the At the beginning of 2003, the ed to NOK 269 million. "The Board’s objective is to same time, maintaining long- Schibsted share was traded at In 2003, the average number maintain a stable, high dividend, term financial flexibility. Due to NOK 72.00. At the beginning of of employees was 58, of whom which at least corresponds to the the changes within the media 2004 the share price was NOK 15 were trainees on placements distribution of the last three industry, interesting strategic 113.50, an increase of 58 percent. in different Group companies. years. Schibsted AS’s dividend growth opportunities are ex- During the same period the Oslo The Group Chief Executive Officer must be competitive compared pected in 2004. Stock Exchange Benchmark Index is Schibsted ASA’s managing with the dividends of other com- Schibsted’s ownership struc- (OSEBX) increased by approx. 48 director. The working environment panies on the Oslo Stock ture also requires long-term sta- percent. In 2003, an average of is good, and the company hardly Exchange. In periods of intensive bility, in case it is not possible to approx. 147,000 shares were trad- pollutes the environment. investment, it is the company’s raise new equity if the financial ed daily, an increase of 29 percent objective that the dividend from situation should require it. from 2002, and at the same level ALLOCATION OF PROFIT FOR THE Schibsted AS will remain at a On the basis of the Group’s as in 2001. The Group’s owner- YEAR FOR SCHIBSTED ASA steady, high level for sharehold- financial position, and after a ship structure changed slightly The Board of Directors of ers." comparison of Schibsted’s divi- during 2003. The proportion of Schibsted ASA proposes the fol- Based on the improved prof- dend ratio with other listed com- shares held by foreign investors lowing allocation of the profit for itability achieved, it is the opinion panies in Norway, and other increased to 43 percent (39 per- the year (NOK million): of shareholders representatives media companies in Europe, the cent). The number of sharehold- of the Board that there is room Board will propose for the ers was 5,544 at the end of 2003, for a significant increase in Annual Shareholder Meeting that compared with 5,507 the previous Schibsted’s dividend level. On the the dividend is set at NOK 3.00 year. Schibsted's largest share- other hand it is important to main- per share for 2003.

Oslo, 25 March 2004 Schibsted ASA’s Board of Directors

Ole Jacob Sunde Alexandra Bech Gjørv Lars M. Berg Chairman of the Board Tinius Nagell-Erichsen Deputy Chaiman of the Board

Berit Bjerg Monica Caneman Hilde Harbo Cato A. Holmsen

Håkon Kjernsmo Gunnar Nordby Jan Reinås Kjell Aamot President & CEO >> 16 THE SCHIBSTED GROUP ANNUAL REPORT 2003 CORPORATE GOVERNANCE IN SCHIBSTED

Schibsted ASA is established with one class of shares, with equal rights attached to each share. With regard to Schibsted’s publishing responsibility and role in society as a media company, Schibsted’s impartiality and integrity are guaranteed by means of restrictions in ownership and voting rights in the company’s regulations.

Changes in company regulations rules on establishment of a cor- reporting of the main figures for represent him until the Annual require approval from more than porate assembly. the Group, the status of com- General Meeting on 6 May 2004. 75 percent of the share capital mercial situation, financial mar- represented at the Annual BOARD OF DIRECTORS ket information and a status To strengthen and best exploit General Meeting. The same The Group’s Board of Directors report for each business area. the Board members’ expertise applies to resolutions on the currently consists of 11 mem- The Board seeks to obtain a and experience in the Schibsted transfer of publication rights in bers. Seven are elected by the detailed presentation of one of Group’s operations, some of Aftenposten and VG. The shareholders and four are elected the Group’s central companies at them also have directorships in Group’s publishing companies by and among the employees. each board meeting. the Group’s subsidiaries. also have provisions in their arti- In accordance with protocols Furthermore, the Board seeks to Among the shareholder-elected cles of association to safeguard from 1988/89, one of the regularly combine its meetings Board members, this applies to their editorial freedom. employees’ seats on the board is with a visit to one of the Group’s Ole Jacob Sunde (Aftonbladet reserved for a VG employee. In subsidiaries outside of Oslo. Hierta AB), Cato A. Holmsen Any shareholder owning at least addition, VG has a permanent (20 Min Holding AG and 25 percent of the shares in the deputy member. Three of the The Board makes regular evalua- Aftenposten AS), Tinius Nagell- company are entitled to desig- employees’ seats on the board tions of the factors which affect Erichsen (Aftenposten AS), Jan nate a board member directly. are reserved for Aftenposten the work and working methods Reinås (Verdens Gang AS) and Blommenholm Industrier AS, employees. of the Board. The size and com- Monica Caneman (Svenska which is owned by Tinius Nagell- position of the Board have also Dagbladet). Erichsen, controls 26.1 percent In 2003, the Board’s work been discussed, including the of the shares in Schibsted ASA. focused on development of our current representation arrange- Some Board members have, These shares will be transferred core operations, and rise in prof- ments for employees. The Board directly or indirectly, consulting to the Tinius Trust at a time itability. During the strategy of Schibsted ASA believes that it functions or business relationships decided by Tinius Nagell- process last autumn, the Board is of positive benefit to its work with the Group. The skills of Lars Erichsen, or in the event of his considered potential new growth that the Board consists of quali- M. Berg and Monica Caneman death. The Tinius Trust is and expansion within the Group. fied members representing a have been utilised at operational described in more detail on page wide range of experience, age, level through consulting agree- 21 of the Annual Report. Ahead of the budget process, gender and education. On pages ments, for fixed annual fees of the Board is involved in a large- 10 of the Annual Report, there is NOK 150,000 and NOK 60,000 CENTRAL FUNCTIONS scale strategy programme, in a more detailed presentation of respectively. Jan Reinås was The company is organised as a which the status and objectives the Board members, which lists Group President of Norske Skog traditional limited company, with of the Group’s different business their experience and expertise. up to the end of 2003. As a paper the General Meeting as the areas are evaluated and acted producer, Norske Skog is a central supreme authority, a Board of upon. The Group’s main long- Lars M. Berg resigned from the supplier to the Schibsted Group. Directors, an external Auditor and term vision, goals and strategies Board following his appointment a Chief Executive Office report- are also being reviewed. as Group President of the The Board of Blommenholm ing to the Board of Directors. As a management tool, the Swedish Enero Group. Deputy Industrier AS, Schibsted’s largest Schibsted is exempted from the Board receives monthly financial member Christian Ringnes will shareholder, comprises >> 17 THE SCHIBSTED GROUP ANNUAL REPORT 2003 CORPORATE GOVERNANCE IN SCHIBSTED

SCHIBSTED´S GROUP MANAGEMENT: JAN ERIK KNARBAKK, SVERRE MUNCK, TROND BERGER, KJELL AAMOT, BIRGER MAGNUS

Tinius Nagell-Erichsen by the Annual General Meeting As far as possible, the Election General Meeting that foreign liv- (Chairman), Ole Jacob Sunde in 2002 and is therefore up for Committee’s proposals for Board ing Board members shall be and Attorney John A. Rein. The election at this year’s Annual members and Deputy Board compensated for the extra travel- latter is the 2nd deputy member General Meeting on 6 May 2004. members are made public in the ling time to the Board meetings. for the shareholder-elected The present Election Committee Notice of Annual General Per today, this will apply for the Board members. John A. Rein comprises Supreme Court Meeting. The Election Swedish Board member Monica provides solicitor’s services to Attorney Lars A. Christensen Committee also proposes Board Caneman, and the Election Blommenholm Industrier (Chairman), Grete Faremo and remuneration. The Annual Committee will propose that her AS/Tinius Nagell-Erichsen Tinius Nagell-Erichsen. Chief General Meeting defines the salary is increased from NOK through the law firm Wikborg, Executive Officer Kjell Aamot is Board remuneration in advance. 120.000 to NOK 180,000. There Rein & Co. deputy member of the Election will be no proposal to change Formuesforvaltning ASA, of Committee. Last year’s Annual General other Board remuneration. which Ole Jacob Sunde is a Meeting, set the Board remunera- major shareholder, has a trust Lars A. Christensen has been tion at NOK 120,000 per member, ESTABLISHMENT OF A EUROPEAN agreement with Blommenholm Chairman for a number of years and also introduced a fixed and WORKS COUNCIL – “THE GROUP Industrier AS/Tinius Nagell- and also chairs Schibsted’s variable percentage. The fixed COUNCIL” – IN SCHIBSTED Erichsen. Blommenholm General Meetings. He is a part- remuneration represents NOK The Group management team Industrier AS has invested in ner in the law firm Wikborg, Rein 90,000 of the total, while the vari- and negotiating committee, con- FSN Capital Fond I (1.75 percent & Co, which has other connec- able proportion is distributed sisting of employees’ represen- share). Group Board member tions with the Company’s princi- across the board meetings and tatives in the Group, have Cato A. Holmsen is Executive pal shareholder. Grete Faremo paid out on the basis of atten- reached an agreement, which Chairman of the fund’s manage- has no other positions or other dance. Fixed remuneration to involves the establishment of ment company FSN Capital form of connection to the Group. deputy members was NOK 5,000 what we have called “the Group Partners AS. Some Group Board The Election Committee has for the period, in addition to a fee Council” in Schibsted. The Group members / deputies are board been granted a more active role of NOK 5,000 per meeting. Council has been set up accord- members in the Tinius Trust. The in Schibsted the last years. At Remuneration to the Chairman ing to the legal model for the Board of the Tinius Trust current- last year’s Annual General of the Board in the same period Establishment of European ly comprises Tinius Nagell- Meeting, the Election was NOK 400,000, with the Works Councils. The agreement Erichsen (Chairman), Ole Jacob Committee gave its first verbal fixed remuneration amounting specifies that the purpose of the Sunde, John A. Rein and editor report on its work. This year, a to NOK 300,000. All Board mem- Group Council is to promote Per Egil Hegge. written report from the bers have the expense of a sub- development, motivation, joint Committee is also included on scription to Aftenposten cov- responsibility and mutual trust ELECTION COMMITTEE page 20 of the Annual Report. ered. Some Board members between the management team The company’s Election The Election Committee propos- have also had special expenses and employees. The Council Committee is elected by the es candidates for the sharehold- connected with their Board must ensure active cooperation Annual General Meeting for a er-elected board seats and the assignments in Schibsted cov- and represent a forum for infor- two-year term. The present three shareholder-elected deputy ered. The Election Committee mation, discussion and dialogue Election Committee was elected members. will propose to the Annual in the Group. The agreement is >> 18 THE SCHIBSTED GROUP ANNUAL REPORT 2003 CORPORATE GOVERNANCE IN SCHIBSTED

The Board of Directors

Ole Jacob Sunde Chairman of the Board

Schibsted ASA

Kjell Aamot President & CEO

Strategic projects and Newspapers TV, Film & Publishing Economy/Finace Business Development Birger Magnus Jan Erik Knarbakk Trond Berger Sverre Munck Executive Vice President Executive Vice President Executive Vice President Executive Vice President

a supplement to the employees’ AUDITING NOK 3,938,000 in 2003, while Directors of the individual com- representation in their own company. Ernst & Young is Schibsted total fees for other services panies are remunerated mainly ASA’s auditor. The Company’s amounted to NOK 2,065,000. It from long-term profit creation. It also specifies that the parties auditor is present when the con- is the Board’s opinion that con- The majority consists of a fixed share a common goal to make solidated accounts are present- sulting services carried out by salary, which is adjusted in line the Group Council a centre of ed to the Board of Directors. Ernst & Young for the Group are with the general market develop- excellence in the Group. The As stated on page 66 of the mainly connected with the audit- ment. There is additional remu- Group Council will help to streng- Annual Report, the Group’s total ing assignments and do not neration in the form of a bonus then employees’ group identity auditors’ fees to Ernst & Young influence the auditor’s impartiali- on achieved profit targets, as and act as a forum for transfer in 2003 amounted to NOK ty. Please refer to Note 8 in the well as a share option scheme and development of skills across 3,339,000, of which NOK annual accounts (page 66 of the (see page 65 of the Annual national boundaries and employ- 550,000 related to Schibsted Annual Report), in which the Report). On the basis of the ees’ own trade unions, organisa- ASA. Other services from Ernst type and scope of the services salary framework discussed with tions and companies. & Young are specially invoiced are described in more detail. the Chairman of the Board, the and in 2003 these amounted to Chief Executive Officer negoti- The employees elect 30 repre- NOK 1,186,000 for the Group, MANAGEMENT SALARIES ates salary terms with the sentatives to the Group Council. of which NOK 191,000 related The Chairman of the Board and Executive Vice Presidents. A cor- The representatives will be to Schibsted ASA. the Vice Chairman constitute the responding model is applied in selected from 23 constituencies, Board’s compensation commit- the Group’s subsidiaries. Key which are defined according to The other assistance is mainly tee, which has full authority employees in Group manage- union groupings and business in connection with questions from the Board to negotiate the ment and the Group’s sub- areas in the Group. The Group relating to taxation, and required Chief Executive’s terms. The sidiaries may hold paid and Council will also include six rep- auditor’s confirmations in con- Board is briefed on the result of unpaid directorships in the resentatives from the Group nection with corporate changes these negotiations. The CEO’s Group’s companies. management team. The first in the Group (capital injections, fixed salary has increased by Group Council election will be mergers, demergers etc). Some approx. 3.5 percent in recent decided before 1 May this year, subsidiaries use other auditing years. Like the Chief Executive and the aim is to hold the first companies. Auditors’ fees to Officer, the Executive Vice Council meeting this autumn. these companies amounted to Presidents and Managing >> 19 THE SCHIBSTED GROUP ANNUAL REPORT 2003 SOCIAL RESPONSIBILITY

For a media company such as Schibsted, trust is a keyword. It is essential to have mutual trust with readers, viewers and listeners, as well as employees, owners and society at large. One does not gain trust without taking responsibility. For Schibsted, it is of vital importance to be ethical and responsible.

“Ownership is much more sig- In addition, each newspaper motivated by the belief that “a torial corporate governance”. nificant to a newspaper than a defines internal rules to ensure newspaper is not a standard This year, for the first time, the normal industrial company”. editorial integrity, source protec- product, but rather a forum for annual reports of VG, These were the opening words tion and compliance with the essential social information and Aftenposten, Aftonbladet, of Tinius Nagell-Erichsen when press ethics standard. This debate, on which our democratic Svenska Dagbladet and Scanpix he presented his report on the means that each editor has per- society depends”. The past 15 will include an editor’s report on Tinius Trust in May 1996, which sonal and full responsibility for years have seen Schibsted how editorial operations are run shows what special social editorial content, in accordance change from being a traditional, and managed.The aim is that all responsibility is involved in run- with the Ethical guidelines for family-owned newspaper opera- Schibsted’s media channels ning newspapers and other Norwegian Editors. This also tion, with VG and Aftenposten as which communicate editorial media. Media owners have a applies to advertisements. its central publications, to become content will clarify the internal special responsibility. an international, listed media management and control mecha- Schibsted builds on the publish- The editor reports to the compa- group with media operations in nisms that have been developed ing tradition which gives editorial ny board, but is in full charge of every sense of the word. by the editor and on which the freedom to newspapers and editorial matters and operates Schibsted currently has a variety of editorial work in each company other media, and emphasises independently based upon the media channels which provide the is based. the requirement for editorial company’s basic articles of asso- society with editorial content in dif- impartiality, reliability and quality. ciation and charter. Editorial activi- ferent arenas. EQUALITY This is an essential part of the ties are carried out in accordance Schibsted thrives on skilful and tal- Group’s 165 year old tradition. with the adopted organisation When the Tinius Trust was set ented managers and employees. chart, with delegated and clear up, it was therefore important for For this reason, it is essential for EDITORIAL CORPORATE responsibility in all areas, 24 Schibsted’s principal shareholder the Group to ensure that men GOVERNANCE hours a day. The work is coordi- to include these significant new and women have equal develop- Where newspapers are con- nated through a fixed meetings media channels in the basic ment opportunities. This is an cerned, operations are guided by structure, adapted to the individ- media ownership requirements. important part of the Group’s editorial integrity, independence, ual editorial department. This is to It was emphasised that “the social responsibility and the basis trustworthiness and quality. guarantee quality and compliance. requirements for editorial integri- for further success. Active efforts Editorial work must be carried When Schibsted’s principal share- ty, independence, trustworthi- are underway to secure equal con- out in compliance with legislation holder Tinius Nagell-Erichsen ness and quality in newspapers ditions for men and women, and ethical rules for media in the founded the Tinius Trust, his must also be followed by other including equal access to manage- individual countries. In Norway, main aim was to make sure that media and publications in opera- rial posts and equal conditions for this means in compliance with Schibsted’s newspapers to be tions owned by the Schibsted recruitment and development Norwegian legislation and the free and indipendent editorial Group”. The Group Board and activities in a number of the principles the Norwegian Press bodies also in the future.In his management team fully support Group’s companies. Several com- Association has highlighted in its report, he affirmed that estab- these important principles. panies have their own equality Code of Ethics of the Norwegian lishing of the Trust as the future At present, major initiatives are plans and many are conducting Press. guardian of the controlling block underway in our leading compa- surveys from an equality per- of shares in Schibsted was nies to clarify what is called “edi- spective. >> 20 THE SCHIBSTED GROUP ANNUAL REPORT 2003 SOCIAL RESPONSIBILITY

VG’s trainee programme for new • Schibsted Management Additional measures are being been introduced for most waste. journalists, which was launched Programme – established in implemented. Injuries in the For example, Schibsted Trykk in 2003, is one of many exam- 2004 – 26 percent Group’s companies are at a low separates 98 percent of its ples of how Schibsted’s sub- However, much remains to be level. Operations in the printing waste at source. Special waste sidiaries are actively taking steps done before Schibsted can be companies are particularly vul- is collected by approved trans- to ensure equality issue. The aim considered to have achieved full nerable , but active HES work is porters. of the programme is to recruit equality. This particularly applies carried out, and no accidents young women with a journalistic to women’s representation in were recorded at any of the The printing plants have imple- to positions in male-dominated managerial positions. At present, printing plants in 2003. A total of mented the following projects editorial environments, such as the proportion of women on 11 minor accidents which were aimed at environmental improve- sport and news. Schibsted’s Board is 36 percent. recorded in 2003, resulted in ments: slight personal injury. • Schibsted Trykk – 85 percent The programme was advertised WORKING ENVIRONMENT Major structural changes in the reduction in waste linked to in autumn 2003 and attracted Schibsted aspires to ensure a readership and advertising mar- humidity. criticism from the Equal high level of satisfaction in its ket are forcing subscription • Tidningstryckarna – 90 percent Opportunities Board, which workplaces, as well as good co- newspapers to undergo tough reduction in use of detergents argued that VG was discriminat- operation among colleagues, and reorganisation processes. to wash rubber blankets. Use ing men. The Board called for a between management and other It is Schibsted’s responsibility to of environmentally marked change to the wording and VG employees. The working environ- ensure that the process is man- electricity acceded to this request. Four ment committees in the individual aged in a professional way, with • Kroonpress – ISO certification female trainees were selected companies deal with working respect for those involved and in for environmental processing for the programme. environment issues. The company close cooperation with the (ISO 14001/1996). health services are used to con- employees’ unions. The Group Group management also works duct working environment sur- believes that it has managed this Use of printing paper, printing ink systematically to ensure a bal- veys, which form the basis for successfully in 2003. and electrical energy is on the ance between men and women, improvements. same level as 2002. Schibsted’s particularly in training pro- THE EXTERNAL ENVIRONMENT printing plants deal with environ- grammes which the Group Sickness absence in the Group is Schibsted’s companies carry out mental conditions in their own arranges. The proportion of approximately six percent and their operations in compliance separate reports. For example, women in these programmes is has remained stable in recent with current environmental regu- Schibsted Trykk, the Group’s only as follows: years. Some companies, such as lations. Newspaper production is printing company in Norway, • Schibsted Management Schibsted Trykk, have a particu- digital until it reaches the printing compiles an annual environmen- Trainee Programme – estab- larly high level of sickness plant. Basically, printing is a clean tal report.The newspaper compa- lished in 1997 – 41 percent. absence. Measures already industry. Where contaminated nies in Norway and Sweden • Schibsted Middle Management carried out have reduced this by materials are used, the process- arrange collection of unsold Programme – established in 2.2 percent, but it still remains es are carried out in sealed sys- newspapers for recycling. 2003 – 50 percent at the high level of 17 percent. tems. Separation at source has THE ELECTION COMMITTEE’S REPORT

Board recruitment has been and bers’ business relationships with ships in subsidiaries. The reason- In its deliberations, the Election will continue to be the main duty shareholders or other parties (p. ing behind this, both from Board Committee has among others, of the Election Committee. The 17). Regarding the evaluation of the and management perspective, has emphasised the importance of Committee works on this all the Board members’ independency, the been to ensure that the Group strengthening the female recruit- time, as shareholder-elected Board Election Committee would like to Board as a body possesses thor- ment base to the Board. The members and deputy members inform that the Chairman of the ough knowledge of the Election Committee has also are up for election every year. Board, Ole Jacob Sunde and the Company’s key operations, so that focused on strengthening the This year, four of the seven 2nd deputy, John A Rein, are both their experience from their Board Board in terms of experience and shareholder-elected Board mem- board members of the Tinius work in these companies acts as a non-Norwegian background. bers and the three shareholder- Trust, which was established by resource when central topics are Large, important parts of the elected deputies are up for election. Tinius Nagell-Erichsen. The only being discussed at Group Board Group’s operations and markets voting share in Blommenholm level. The Election Committee are located outside Norway, prima- It has been important for the Industrier AS will be transferred to supports the Board and manage- rily in Sweden. The Election Election Committee to ensure the Tinius Trust after his death, or ment team in these views and Committee believes that Board continuous strengthening and when Tinius Nagell-Erichsen so does not consider their director- recruitment of recent years has upgrading of the Board’s expertise decides. The Election Committee ships in subsidiaries to affect their succeeded in sharpening and and experience, and to arrange considers the Board’s other share- impartiality as Group Board mem- widening competence among the Board recruitment which ensures holder-elected members and bers. shareholder- elected Board mem- that directorships are also held by deputy members to be independ- bers. impartial Board members who are ent, i.e. that they do not have a Last year, the Board stated that it not taking care of special interests special connection to any groups is of positive benefit to its work if The Election Committee has through their work on the Board. of shareholder. it consists of qualified members received a report from the Board, The Corporate Governance section The Election Committee has also representing a wide range of which provides a briefing on the of the Annual Report contains evaluated the Company’s practice experience, age, gender and edu- composition and work of the information about the Board mem- of giving Board members director- cation. Board in 2003. >> 21 THE SCHIBSTED GROUP ANNUAL REPORT 2003 THE TINIUS TRUST

The Tinius Trust was founded by Schibsted’s principal owner, Tinius Nagell-Erichsen, in order to create the security to guarantee the future freedom and independence of Schibsted’s newspapers and other media.

Tinius Nagell-Erichsen set up the normal industrial company. A Trust by deed of gift on 8 May newspaper is not a standard 1996 and it has a capital base product, but rather a forum for of NOK 10 million. On Tinius essential social information and Nagell-Erichsen’s death or at a debate, on which our democrat- time decided by him, the only ic society rests”. voting share in Blommenholm Industrier AS will be transferred In addition to its long-term to the Trust. This company owns nature, newspaper ownership 26.1 percent of the shares in should openly pledge itself to Schibsted ASA and is its largest the values which the newspaper shareholder. represents. At times it may be called upon to defend these val- Changes to Schibsted ASA’s ues, so that the newspaper can articles of association require a retain its freedom and independ- three-quarters majority, which ence. This is when it is an means that no shareholder can advantage to own a majority.” own or vote for more than 30 percent of the shares. Schibsted The Tinius Trust’s articles of ASA’s articles of association also association specify that it shall ensure that important resolu- work to ensure that the tions in the Group’s subsidiaries Schibsted Group continues as a require a three-quarters majority media group, run in accordance at the Annual General Meeting with the same editorial and busi- of Schibsted ASA. ness guidelines as at present. The principles of editorial free- As long as the 26.1 shareholding dom, credibility and quality shall is held together as single unit, be guiding for all media and pub- these provisions have consider- lishing businesses owned by the able influence over the owner- Schibsted Group. The Trust shall ship of Schibsted. The strength also work for the long-term, of this block of shares is so sound, financial development of great that any takeover would the Schibsted Group. be very difficult. The Board of the Trust compris- At the 1996 Schibsted Annual es Tinius Nagell-Erichsen, Per General Meeting, Tinius Nagell- Egil Hegge, John A. Rein and Erichsen spoke about why he Ole Jacob Sunde. After Tinius had founded the Trust. Nagell-Erichsen’s death, the Board will consist of three mem- TINIUS NAGELL- “Ownership is much more sig- bers. Each member appoints his ERICHSEN nificant to a newspaper than a own successor. >> 22 THE SCHIBSTED GROUP ANNUAL REPORT 2003

The newspaper is dead. Long live the newspaper.

In 1991, 84 percent of young Norwegian people between the ages of 16 and 24 read at least one newspaper every day. The corresponding figure in The “20 minutes” free newspaper concept has 2002 was 62 percent. The loss of young readers is taken just four years to grow to the position of seventh largest newspaper brand in a significant feature of the media market. Europe. The target group is young urbanites who use the city a lot. Many of the At the same time, the newspaper as a medium has been far more robust than newspaper’s readers are people who never previously many had expected. It has also emerged that newspapers as brands can make a read a paper. 20 minutes is currently published in 11 great impact in the new media. cities in three countries: Zürich, Bern, Basel, Madrid, Barcelona, Seville, Saragossa, Paris, Marseille, Lille and Lyon.

Aftonbladet is the largest newspaper in the Nordic region, with a circulation of 448,300, the highest in 27 years. At the same time, aftonbladet.se is clearly the leading online newspaper in Sweden.

VG continues to confirm its position as Norway’s largest newspaper. The paper set a new circulation record with around 420,000 copies in July, but experienced a small decline for the full year. vg.no is the leading online newspaper in Norway.

26 August saw the first appearance of Aftenposten's morning edition in a combined broadsheet and tabloid format. A market survey two months after the change shows that 45 percent of young readers and 42 percent of women think that the newspaper has improved. 35 percent of the young people think that the newspaper is now more inviting to read. >> 23 THE SCHIBSTED GROUP ANNUAL REPORT 2003 >> 24 THE SCHIBSTED GROUP ANNUAL REPORT 2003 >> 25 THE SCHIBSTED GROUP ANNUAL REPORT 2003

Can also be used as a phone .

Schibsted Telecom Schibsted Telecom supplies Over 90 percent of all secondary students have a mobile services in Norway, Sweden, Denmark, Estonia, mobile. They are using their phones ever more, Latvia and Lithuania. The Company has two business areas: but relatively less for chatting. What was once a • ASP delivers mobile infrastructure and applications wireless telephone is now an information medi- to media companies, terminal producers and operators, um, which is developing at a furious pace. • Inpoc is Schibsted’s own mobile brand for end users. The Company increased its SMS, MMS, WAP, UMTS – new abbreviations are lining up, and herald the turnover by 122 percent in 2003 and is constantly growth of a new channel which is already giving the Internet a run for its developing new services money in several areas. Schibsted has a presence in this channel, both as a based on state-of-the-art technology and the needs content provider and as a developer of new services. of mobile people.

Inpoc is Schibsted’s own brand for mobile entertainment services and communication. The Company has over 600,000 registered members in Norway and Sweden and reaches mobile young people via the Internet, print, WAP portals and SMS.

VG is one of several Schibsted newspaper that has developed its own online version for WAP portals. It is an ideal platform for new communication, mainly because it can be easily per- sonalised. Users can choose what type of news they pre- fer. Some 100,000 unique users take advantage of the service every month. Traffic is increasing dramatically and its pattern is the reverse of Internet traffic. When the traffic is quiet on the Internet, it increases on the mobile. The peak time of the week is on Sunday evening, when many people are travelling. >> 26 THE SCHIBSTED GROUP ANNUAL REPORT 2003

Which did you like

Metronome Film & Televisjon comprises the many TV and film produc- best – the book tion companies which are controlled by Schibsted, and is the Norwegian leader in its genre. The Company’s productions include titles such as “Big Brother”, “Hotell Cæsar”, “Pop or the film? Stars”, “Alla mot en”, “Jeopardy!”, “När & Fjärran” and “Sigurds Verden”. New media and major changes in user habits are all very well, but TV, films, books and mag- Sandrew Metronome is a leading Nordic company in azines are still holding their own as strong the purchase and distribution of films for cinema, video, DVD and TV. The media, even among the young. To maintain Company also has major cinema operations in this position will require continued capacity Sweden, Denmark and Finland. Sandrew Metronome is involved in for innovation, both in terms of content, mar- Scandinavian film productions as a producer and keting and distribution. investor, and collaborates extensively with international producers, such as Warner Bros. Schibsted is an important Scandinavian player in TV, film and publishing. It is our clear intention to be involved in shaping this market in the coming years.

Schibsted-Forlagene is the new umbrella organisation for Schibsted’s publishing companies. The main companies in the organisation are Chr. Schibsteds Forlag, Schibsted Internasjonale Bøker, Bladkompaniet and Svenska Förlaget. Bladkompaniet is a leading publisher of paperbacks and comics in Norway. Schibsted also publishes the interior design magazine Maison, the fashion magazine Tique and the financial journal Dine Penger.

Schibsted owns 33.34 percent of TV2, Norway’s largest commercial TV channel. >> 27 THE SCHIBSTED GROUP ANNUAL REPORT 2003 >> 28 THE SCHIBSTED GROUP ANNUAL REPORT 2003 >> 29 THE SCHIBSTED GROUP ANNUAL REPORT 2003

Changing car? Changing job? Log on here.

In just a few years, the Internet has grown into a giant marketplace for the purchase and sale of FINN.no is the largest mar- goods, property and situations vacant. Everything ketplace for online classified advertising in Norway and is continuously strengthening indicates that the trend will continue with undimin- its position. This venture is an important element in ished tempo. There is more on offer, the functionali- Schibsted’s efforts to exploit changes in the advertising market. An ty is improving and new user groups are getting important feature of FINN.no is the marketplace used to this medium. which is at the disposal of the Schibsted-associated newspapers. For Schibsted, this represents both a challenge and potential. For several of our newspapers, it has meant a decline in advertising volumes. At the same time, the market portal FINN.no has helped Schibsted to become a leading Scandinavian player in online classified advertising. The company FinnTech develops and markets the technological side of FINN.no as a separate product. In 2003, Fish4, the UK’s largest online classified advertising player, bought a stake in FINNTech and will in future use its technical platform. Behind Fish4 are five of the UK’s largest regional media groups which together account for 80 percent of the UK’s regional newspaper market and publish 636 newspapers

In 2003, Schibsted purchased the Swedish classified service www.blocket.se through Finnmer AB. Blocket is the leader in online private car trade and retail and wholesale in Sweden. Together with Finnmer.se, Schibsted controls leading websites for classified commerce in Sweden. >> 30 THE SCHIBSTED GROUP ANNUAL REPORT 2003 NEWSPAPERS

2003 was an historic year for Schibsted’s newspapers. Svenska Dagbladet, Aftonbladet and VG delivered their best-ever results. The free newspaper 20 minutter achieved profitability

for the first time and the online news- BIRGER MAGNUS EXECUTIVE VICE PRESIDENT papers began to report positive figures. NEWSPAPERS Newspapers >>p.31 Aftenposten >>p.32 avis1, >>p.33Verdens Gang >>p.34 Aftonbladet >>p.35 Svenska Dagbladet >>p.36 20 minutes >>p.37 Schibsted Trykk >>p.38 Tidningstryckarna, Scanpix Scandinavia >>p.39 Estonia, Kanal 2

Svenska Dagbladet continues to Akersgaten into contemporary, position on the Internet has also For this reason, Schibsted raised impress by delivering constantly efficient premises at Oslo continued to develop. Losses the priority of this area in 2003. improved results, this time giv- Central Station during the year, have been turned into profits, and By using each other's knowl- ing us our first profit in nine has experienced a decline in the aftonbladet.se and vg.no are the edge, the Schibsted companies years. The difficult combination job market advertising. The top online newspapers in Sweden can increase their competence of streamlining operations and change in format, with a tabloid and Norway. Aftonbladet domi- and prepare to meet changes in product development has been section of the morning edition, is nates the Swedish media market, market conditions. This takes managed particularly well. This one example of the large-scale and is as big as all the other place in projects in branding, culminated in record profits, a product development and news-media players combined. advertising sales and measures further increase in circulation, streamlining measures, which FINN.no has continued to to boost the efficiency of opera- and – the icing on the cake – the will be developed further during strengthen its position as tions. Stora Journalistpriset journalism the year. Norway’s biggest marketplace for award. The newspaper faces a online classified advertising, expe- For a group which lives by expe- challenge in the property adver- The profitability of the free news- riencing a sharp increase in sales rience, talent and expert leader- tising market in 2004. paper concept 20 minutes under- and the number of unique users. ship, there will also be increased lines its raison d’être. The news- focus on recruitment, manage- Aftonbladet produced impressive paper is now the sixth-largest in FinnTech, the company which ment development and upgrad- results and circulation figures. Europe. The free newspaper develops industry-standard tech- ing of skills. The results were the best ever remains a priority growth area for nology for this concept, is in the 173-year history of the Schibsted and is also a key part of attracting considerable interna- newspaper, and the circulation the Group’s internationalisation. tional interest. In 2003, Finnmer ONLINE NEWSPAPERS (TOTAL) was the highest in 27 years. The acquired the Swedish classified Schibsted’s online newspapers – news-paper is confirming its In March 2004, Schibsted signed advertising portal Blocket.se, Operating result position as the largest news- an agreement with Apax Partners thus increasing its potential by (NOK million) 2003 2002 paper in the Nordic region and and a group of Swiss investors, being able to benefit from the Advertising revenues 269 188 continues to dominate the whereby Schibsted increased its large traffic at aftonbladet.se. Other revenues 83 49 Internet. shareholding in 20 Min. Holding Operating revenues 352 237 AG from 41 percent to 98 per- COMPETENCE DEVELOPMENT Operating expenses1) (301) (241) VG also reported an impressive cent. The acquisition represents The media world is undergoing Operating profit operating profit, with an operat- a strategic investment in two of major restructuring, with changes (loss) (EBITA) 51 (4) ing margin of over 20 percent, Europe’s largest advertising mar- taking place more frequently and even though there has been a kets, France and Spain. rapidly than before. As a leading The figures are also included in decline in circulation. The reader- operator in such a market, it is the individual newspaper’s ship is still increasing. VG is daily INTERNET LEADER important for Schibsted to results read by 36.6 percent of the In 2003, Schibsted confirmed its ensure competence develop- Norwegian population. position as the leading news- ment and organisational renewal. 1) Includes all costs except edito- paper company in Scandinavia. rial content Aftenposten, which moved from Through the newspapers, our >> 31 THE SCHIBSTED GROUP ANNUAL REPORT 2003 NEWSPAPERS

NEWSPAPERS – OPERATING RESULT (NOK million) 2003 2002 Subscription revenues 865 803 Mediapost Single-copy sales revenues 2677 2506 (33.3 %) Advertising revenues 2456 2307 Romerike Other revenues 513 466 Distribution Media- Operating revenues 6 511 6 082 Innovation distribution (60 %) Operating expenses (5 883) (5 608) (33.3 %) Operating profit (EBITA) 628 474 GW and other revenues and expenses (41) (95) Aftenposten Distribution Operating profit (loss) 587 379 Income from associated companies (31) (123) Felles- Sam- distribusjon Distribusjon Østfold Operating margin (EBITA) (%) 9.6 7.8 (17 %) (50 %)

Exchange rates 2003 2002 Buskerud Distribusjon SEK/NOK 87.69 82.00 (9,9 %) EUR/NOK 7.99 7.51

AFTENPOSTEN DISTRIBUTION ORGANISATION

tabloid format. Taking this a papers, weekly magazines and step further, the future product books at competitive prices and structure is being carefully evalu- with a high level of distribution ated during the first half of 2004 quality. The company has already to guarantee economically sound won distribution contracts with development. This is being done six customers. Aftenposten is with constructive contributions also co-owner of a number of from throughout the organisa- distribution companies in east- tion. ern Norway. AFTENPOSTEN In spring 2003, Aftenposten moved into new, contemporary, THE ADVERTISING MARKET Aftenposten Group – Operating efficient premises in Biskop In 2003, the classified market result Gunnerus gate 14. There has was hit by a five-percent fall in (NOK million) 2003 2002 been a sharp increase in the volume. The recruitment market Circulation revenues1) 653 635 number of users of DISTRIBUTION was affected by high unemploy- Advertising revenues 1 277 1 312 Aftenposten’s online edition. The market for distribution servic- ment and a lack of vacancies, Other revenues 151 153 FINN.no enjoyed a good year, es is in a growth phase and and there was a further decrease Operating revenues 2 081 2 100 with a positive earnings trend Aftenposten has exploited its in the volume of advertisements Operating expenses (2 015) (1 997) and an enhanced position as the expertise in sales, distribution and compared with 2002. Operating profit leading online classified advertis- technology to position itself at the The car market was slow through- (loss) (EBITA) 66 103 ing service. Development of forefront in developing the distri- out the year. This was partly due new electronic distribution chan- bution systems of the future. to an increasing move by the Operating margin nels in Distribution Innovation E-budboken from Distribution private market to the Internet, (EBITA) (%) 3,2 4,9 has moved from the pilot stage Innovation has attracted interna- mainly FINN.no. Initiatives are 1) Circulation revenues consist of to practical use. At the start of tional attention and recognition. underway to stem the flow, and subscription and single copy sales 2004, Aftenposten’s Chief Editor The solution is already up and advertising packages have been revenues of ten years, Einar Hanseid, running in Norway and is cur- developed which combine news- decided to take up another post rently undergoing testing in papers and the Internet. The real Number of employees 877 942 in the Schibsted Group. He is Sweden and Finland. Online estate market showed a stable succeeded by Hans Erik Matre. communication via handheld volume compared with 2002. In 2003, Aftenposten continued After the morning edition’s weak PDAs ensures flexibility and a Guaranteed advertisement inser- its restructuring programme, growth in 2002, the paper’s circula- high level of quality in deliveries. tion due to a more sluggish mar- which will bring increased prof- tion for 2003 was 256,600, a de- During 2003, Aftenposten joined ket resulted in a moderate itability and a sharper competi- crease of 6,400. The afternoon edi- forces with Orkla and A-pressen decline in revenues. At the same tive edge. Product initiatives tion achieved a figure of 155,400, to set up a competitive alterna- time, the basis for comparison included a facelift for the morn- and the Sunday paper 232,900, tive to Norway Post. The busi- from 2002 was the best result ing edition, with part of the which are reductions of 8,500 and ness concept of the company ever in the real estate market. newspaper now produced in 1,800 copies respectively. Mediapost is to distribute news- >> 32 THE SCHIBSTED GROUP ANNUAL REPORT 2003 NEWSPAPERS

0 2001 2002 2003

DISTRIBUTION OF ADVERTISING REVENUES AFTENPOSTEN

Classified Brand/Display

AFTENPOSTEN MULTIMEDIA FinnTech AS, a company in which In 2003, Aftenposten Multimedia, FINN.no AS owns 50 percent of with its websites aftenposten.no the shares, is responsible for tech- and oslopuls.no, achieved more nological development. The other than 1.5 million unique users in shareholders in FinnTech AS are one month for the first time. The Fish4 Ltd and ANM Ltd (both have traffic growth corresponded to their head office in the UK). 24 percent. Of the purely online In December 2003, Finnmer AB in newspapers, aftenposten.no is in Sweden bought out Blocket.se, The most positive development measures to be implemented third position in Norway in terms which is Sweden’s largest web- was in the market for chain during 2004 and 2005. The pro- of unique users. Aftenposten site for classified advertising. stores and shopping malls, with gramme is proceeding as expect- Multimedia achieved record FINN.no AS has a holding of 10.92 revenues increasing by 13 per- ed. The decision to move all turnover in 2003. With effect per cent in the merged company. cent compared with the previous operations from the old premis- from 1 January 2003, the adver- FINN.no expects online advertis- year. Direct Mail in this segment es in Akersgaten was based on tising sales company PrimeTime ing sales to continue to increase, showed a growth of 23 percent. a combination of the desire for was merged with Aftenposten both in the classified and the Brand advertising experienced a more efficient and contemporary Multimedia. brands markets, and is well growth of 10 percent compared premises for modern newspaper equipped to increase its market with 2002, which is partly attrib- production and the need for FINN.NO share and turnover in 2004. The utable to the very positive devel- lower rental costs. Aftenposten FINN.no AS, established in international alliance resulting from opment of the is immersed in its goal of chang- autumn 1999, is located in Oslo FinnTech and Adexalliance is “Storbysamarbeidet” (advertising in pace with society and its and owned mainly by the five expected to have a positive effect ing package) initiative. Sound readership. The desire for a largest regional newspapers in by increasing knowledge of devel- development in these markets is more manageable newspaper Norway: Aftenposten, opment trends in the European expected to continue in 2004. format has been strong in vari- Adresseavisen, Bergens Tidende, classified market. There was a further decrease in ous groups, particularly women Stavanger Aftenblad and Harstad Aftenposten’s advertising rev- and younger readers. The launch Tidende Group. Aftenposten enues in 2003 compared with of the new morning edition on owns 62 percent. The Company AVIS1 the previous year. This was, to 26 August was what could be is organised in a group structure, avis1 some extent, offset by positive called a historic change. For the with subsidiaries in the different (NOK million) 2003 2002 development in circulation and first time, Aftenposten offered business areas. The aim of the Operating revenues 18 29 single copy sales revenues. Total both broadsheet and tabloid for- Company is to develop and oper- Operating expenses (30) (47) operating revenues for printed mats in the morning newspaper. ate advertising bases on the Operating profit newspapers fell by three percent The broadsheet part retained its Internet. The Company has (loss) (EBITA) (12) (18) from 2002, which led to an character as a classic morning strengthened its position as the increased focus on profit- paper, while the tabloid section largest and leading marketplace Number of employees 11 19 increasing measures. concentrated on culture, lifestyle for online classified advertising in and consumer topics. The property, jobs and cars. The num- avis1 was launched in April 1999 REORGANISATION change was very well received ber of unique users grew by over as a competitor to the free The reorganisation programme, in the target groups at which the 50 percent in 2003. FINN is the newspaper Osloposten. In which was initiated in autumn new format was aimed, but we 10th largest website in Norway in autumn 2002, Osloposten closed 2001 with a budget of NOK 200 are also seeing that it has terms of unique users and ranks down, leaving avis1 as the sole million, was topped up with encouraged a change in reading among the top three in page views. player in the capital’s free news- another NOK 200 million in habits, with a greater tendency In 2003, the Company had a turn- paper market. In 2003, there December 2002. The focus in for people to take Aftenposten over of NOK 135 million and an were 40 weekly issues of avis1, 2003 was on executing the pro- along on the train or bus. operating profit of NOK 44 million. with an average of 52 pages, 25 grammes and identifying new of which were advertisements. >> 33 THE SCHIBSTED GROUP ANNUAL REPORT 2003 NEWSPAPERS

750

500

250

0 Peru USA Italia Irland Tyrkia Island Latvia Japan Sveits Norge Belgia Serbia Spania Kroatia Estland Ungarn Canada Sverige Ukraina Tsjekkia Bulgaria Slovakia Slovenia Thailand Tyskland Australia Malaysia Østerrike Danmark Frankrike Singapore Nederland Hong Kong Luxemburg Storbritannia New Zealand CIRCULATION PER 1 000 INHABITANTS Source: WAN 2003

The circulation was approx. INCREASED ADVERTISING SALES With VG’s self-imposed advertis- 155,000. The newspaper is dis- – CIRCULATION DOWN ing “ceiling”, which allows a tributed by the Aftenposten After two years of record circula- maximum of 25 percent of the afternoon edition’s vans, by hand tion figures, VG’s weekday circu- news-paper to be advertise- at junctions and in self-service lation decreased by 10,320 ments, each advertisement dispensers at a number of loca- copies to 380,190 in 2003. attracts a great deal of attention. tions in the city. According to the Sunday circulation increased by After a relatively poor 2002, Gallup Norwegian Consumer & 308 copies to 314,730. VG advertising sales increased by 13 Media survey’s readership survey retained its market share of over percent in 2003. There was a 4.3 in September 2003, avis1 had VERDENS GANG 67 percent in the single copy percent volume increase. The 190,000 readers, which is down marked. There has been a steady advertising mix has moved in on the previous figure of VG Group – Operating result rise in Sunday circulation each the direction of higher priced 223,000. In late January and (incl. VG AS, VG Multimedia AS and year since the Sunday newspaper advertisements. early February 2003, avis1 Avisretur AS) was launched in 1990. Following reduced the number of full-time (NOK million) 2003 2002 a decline in 2002, we have seen PRODUCTION jobs by ten and phased out its Circulation revenues1) 1 300 1 218 a small increase again in 2003. 175 million newspapers were own production of editorial mate- Advertising revenues 426 370 The Norwegian newspaper mar- printed in 2003. On average, rial. Bought-in material from free- Other revenues 27 27 ket is recognised as being a 268,000 newspapers were avail- lancers and NTB/Scanpix became Operating revenues 1 753 1 615 world leader in circulation per able for distribution to the mar- the newspaper's primary source Operating expenses (1 398) (1 345) capita. The circulation is high ket at 05.00 a.m., one hour after of content. In autumn 2003, it Operating profit and has remained relatively sta- the start of printing. This is was decided that, from the end (loss) (EBITA) 355 270 ble. There has nevertheless been 22,000 more than in 2002. of the year, avis1 would assume a slight decline in the market as a The regularity and print quality an active role as a distributor of Operating margin whole in recent years. Norwegian of the daily product is constantly Aftenposten’s real estate adver- (EBITA) (%) 20,3 16,7 single copy newspapers continue improving, due to our methodical tisements in Oslo centre, in east- 1) Circulation revenues consist of to hold a strong position. VG is monitoring and, in particular, in- ern Oslo and in parts of subscription and single copy sales read by 1,376,000 people every creased interest in the work on Romerike. Realtors in these revenues day. This corresponds to 36.6 quality at the printing plants. areas now also have their percent of the Norwegian popu- Aftenposten morning edition Number of employees 521 524 lation over 13 years of age. VG’s VG MULTIMEDIA advertisements in avis1, and so readership is evenly spread VG Multimedia AS experienced gain 190,000 extra readers. In 2003, Verdens Gang Group across the whole country and positive development in 2003. and Verdens Gang AS reported the proportion of male and Revenues increased by 34 per- their best financial results in the female readers is 53.7 percent cent, while costs rose by three Company’s history. The solid and 46.3 percent respectively. percent. Operating profit results are due to increased This means that VG is an effec- amounted to NOK 6 million, advertising sales, increased cover tive and much-used channel for which meant that 2003 was the price and effective cost control. national advertising campaigns. first profitable business year. >> 34 THE SCHIBSTED GROUP ANNUAL REPORT 2003 NEWSPAPERS

AFTONBLADET with the general development in the Swedish newspaper adver- Aftonbladet Hierta Group – tising market. Operating result (SEK million) 2003 2002 AFTONBLADET NYA MEDIER Circulation revenues1) 1 457 1 451 The subsidiary Aftonbladet Nya Advertising revenues 380 334 Medier AB, which was established Other revenues 55 38 in 2000, reported an annual prof- Operating revenues 1 892 1 823 it for the first time. Revenues Operating expenses (1 681) (1 659) increased by SEK 19 million to Operating profit SEK 82 million. (loss) (EBITA) 211 164 www.aftonbladet.se is by far Sweden’s most visited website. Operating margin In November it had more than (EBITA) (%) 11,2 9,0 5.3 million unique visitors, which 1) Circulation revenues consist of is an increase of more than 1.1 subscription and single copy sales million compared with the same revenues month in 2002. The main reasons why Aftonbladet Nya Number of employees 504 503 Medier has managed to turn losses into profits are continued cost control, and the investment in new payment services. media shows that the Internet’s “Viktklubben” and progress in 2003 put it on a par “Pluspaketet” were launched in with radio. VG Multimedia’s 2003. In addition, advertising growth of 38 percent is roughly sales increased by SEK five mil- in line with market growth as lion to SEK 48 million. a whole. FOCUS ON SPORT FUTURE PROSPECTS The financial results show 2003 Aftonbladet’s position in sport Continuous product develop- to be the best year in was further strengthened in ment and improvement is one of Aftonbladet’s 173-year history. 2003. The daily sports supple- VG’s success factors. The focus The newspaper achieved its ment “Sportsbladet” has continues to be on wider selec- highest circulation in 27 years approximately one million read- tion of news content and moder- and a targeted concentration on ers every day. The monthly ate changes in the visual presen- the Internet resulted in a profit sports magazine “S” has per- tation of the printed newspaper. contribution from the subsidiary formed strongly, both in journal- MARKET POSITION VG Multimedia expects contin- Aftonbladet Nya Medier AB. ism and advertising. The circula- vg.no, which is the Company’s ued growth in traffic and reve- The newspaper Aftonbladet tion is around 50,000 and even main product, is established as nues, both for Internet and retained its position as the though it is only one year old, Norway’s largest website and in mobile services. Even though Nordic Region’s leader, with a “S” scooped the “Swedish October became the first website almost all Internet users visit VG daily circulation of 448,300, Magazine of the Year” award, in Norway to exceed 2.5 million Nett during the course of one which was 4,900 up on 2002. presented by the trade associa- unique visitors in one month. For month, there is still a great tion Sveriges Tidskrifter. “S” also the whole year, the number of growth potential in daily use. The nearest competitor in represents a new advertising visitors was up by 33.8 percent The prime strategy continues to Sweden, Expressen/GT/KvP, market, which in 2003 brought on 2002. Since mid-October, be to strengthen and further trailed by around 90,000 copies. in sales of SEK six million. vg.no has had over one million develop VG on paper and at the Aftonbladet’s market share is unique visitors weekly, and same time establish a financial unchanged at 56 percent. A year CHALLENGES according to TNS Gallup’s base for VG Multimedia. It is of high news fever, which includ- Major new challenges await the Consumer and Media survey, VG’s goal to deliver content ed the war in Iraq and the mur- Aftonbladet Group in 2004. In the number of daily users in the through several channels. der of Foreign Minister Anna journalism, there is increasing 4th quarter of 2003 was Development and improvement Lindh, contributed to increased qualitative competition from TV 618,000. This makes vg.no the initiatives are continuing, in a sit- sales of single copy sales news- and other newspapers. The jour- country’s 4th most read newspa- uation where we are seeing papers in Sweden. nalism in single copy sales news- per. VG Mobil, which is the ever-increasing competition from The Aftonbladet Group’s financial papers is becoming increasingly Company’s mobile phone news other media. success is largely attributable to inspiring. For this reason, more service, achieved a figure of careful control of fixed costs in focus is being placed on news 100,000 unique visitors in all areas, as well as increased reporting and finding new ways December. The online advertising sales of newspapers and adver- to reach broader population seg- market also enjoyed consider- tisements. Advertising sales in ments. This applies particularly able success in 2003. An over- the paper newspaper rose by 12 in sport, where the European view of the distribution of adver- percent to SEK 329 million. The Football Championships and the tising sales in the different results are excellent compared Olympics will be major events. >> 35 THE SCHIBSTED GROUP ANNUAL REPORT 2003 NEWSPAPERS

32000' 2400' 3000 SvD GP 24000' 1800' DI 2000

16000' TV4 1200'

1000 8000' DN 600'

Expressen 0 0 0 96 97 98 99 00 Q1 Q2 Q3 Q4 jan mar jun sep jan mar jun sep jan Afton- Aften- VG Afton- SvD 01 01 01 01 02 02 02 02 03 03 03 03 04 bladet posten bladet

ONLINE NEWSPAPERS IN NORWAY Unique visitors in 1 000 per month Aftonbladet.se has more DISTRIBUTION OF REVENUES VG Dagbladet Aftenposten Nettavisen TV2 unique visitors than the Advertising revenues

1) other large news sites Single copy sales revenues Includes TV 2 and Nettavisen together Subscription revenues 2) Nettavisen reported separately until September 2003 Other revenues Source: Gallup

Aftonbladet’s goal is a continued growth in circulation in 2004. Commercially, Aftonbladet created openings for new success in 2003. The acquisition of the classified portal “Blocket” put the newspaper at the head of the online classified advertising market. “Blocket” has increased its potential by being linked to the SVENSKA DAGBLADET traffic on aftonbladet.se. There is much to indicate that the devel- Svenska Dagbladet Group opment in the advertising mar- operating result ket will benefit single copy sales (SEK million) 2003 2002 newspapers in 2004. Circulation revenues1) 359 331 Aftonbladet’s advertising depart- Advertising revenues 424 392 ment is well prepared to meet Other revenues 72 78 the challenge. The programme Operating revenues 855 801 to strengthen the Aftonbladet Operating expenses (843) (850) brand will continue in 2004. All Operating profit operating profit has improved by MORE READERS employees are taking part in this (loss) (EBITA) 12 (49) more than SEK 61 million com- The advertisers’ choice of media work which has been in pared with 2002, which is mainly is largely governed by the num- progress since 2000. A large Operating margin due to increased revenues. ber of readers. The most recent number of seminars and work- (EBITA) (%) 1,4 (6,1) Costs have remained largely research, in autumn 2003, shops have been arranged to 1) Circulation revenues consist of unchanged. The newspaper’s cir- shows that Svenska Dagbladet bring new ideas and increased subscription and single copy sales culation continued its positive is the only large newspaper to vitality to operations. revenues development, rising for the third have increased its reach. The year in a row, this time by 1,100 number of readers was 479,000, Number of employees 367 382 copies to a total of 186,100. The an increase of 22,000. There market in Stockholm, which has was no improvement in the In 2003, Svenska Dagbladet been a priority area in recent advertising market situation in reported its best operating profit years, had a circulation of 2003, but we have now seen an ever, in an advertising slump 124,700, an increase of 3,200 end to the decline. which was the worst in several copies. Circulation revenues “Storstadspress” (the largest decades. This is the result of increased by nine percent to SEK newspapers in Sweden’s three five years of improving efficien- 359 million. This meant the aver- largest cities) which includes cy, product development and age subscription price improved Svenska Dagbladet, experienced intense marketing. The Group’s during the year. negative development, particularly >> 36 THE SCHIBSTED GROUP ANNUAL REPORT 2003 NEWSPAPERS

400000 600000

300000 500000

200000 400000

100000 300000

0 200000 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03

CIRCULATION OF NORWEGIAN SINGLE COPY SALES NEWSPAPERS CIRCULATION OF SWEDISH SINGLE COPY SALES NEWSPAPERS

VG Dagbladet Aftonbladet Expressen – since 2000 incl. Kvällsposten and Göteborgs-Tidningen

At weekends, SvD Helg contains Partners and a group of Swiss more reading material in News, investors, whereby Schibsted Business and Culture. Keywords increased its stake in 20 Min. for SvD Helg are Pleasure, Holding AG from 41 percent to Inspiration, Knowledge and approx. 98 percent. This transac- Outlook. The process which has tion means that Schibsted gains been started has moved readers control of 50.5 percent of the to change their view of the news- Swiss company which publishes paper. A major survey has 20minuten and 50 percent of the revealed that Svenska Dagbladet company which publishes 20min- has moved from being “conceit- utes in France (16 percent through ed, complicated and old-fash- 20 Min Holding AG and 34 per- ioned” to become “honest, open cent directly, with the remaining and topical”. 50 percent owned by SPIR/Sofiouest). In spring, 20 Min Holding AG will exercise an option due to the reduced recruitment as “The modern morning paper by purchasing the remaining shares market. However, this did not for the inquisitive urbanite“. in the company that publishes prevent advertising revenues The newspaper has taken the 20minutos in Spain, which means from rising by nine percent to position as the country’s news that Schibsted will have 100-per- SEK 417 million. leader with eye-catching revela- cent control of this company The competitive situation has tions. Irregularities at Stockholm through 20 Min Holding AG. become harder. The free news- Transport System gave Svenska The acquisition of 20 Min Holding paper Stockholm City is estab- Dagbladet the Stora Journalist- AG represents a strategic venture lished and Metro is a new player priset award in 2003. The news 20 MINUTES for Schibsted in two of Europe’s in the real estate market. In view profile was strengthened with a largest advertising markets, of the weak advertising market number of investigative series of 20 minutes, proforma France and Spain. At the same and the fiercer competition, it is articles. The murder of Foreign (100 % Switzerland, 100 % Spain and time, this ensures control of the pleasing that Svenska Dagbladet Minister Anna Lindh was the 50 % France) Company’s presence in is, for the first time in nine dominant news story throughout (EUR million) 2003 2002 Switzerland until the agreement years, able to show a positive the autumn. Operating revenues 50 32 with tamedia, signed in spring operating profit and increase its Operating expenses (59) (58) 2003, is completed and the re- market share. The strategy of THE READERS’ JUDGEMENT Operating profit (EBITA) (9) (26) maining shares are sold. The buy- concentrating on the Stockholm The website SvD.se was re- out will be in two transactions of area, stronger reader focus and launched with a new, user-friend- Number of employees 225 218 25.25 percent at the beginning of continuous product improve- ly form. The emphasis was 2006 and 2007. The price of the ment all proved successful. placed on news, as well as On 3 March 2004, Schibsted remaining shares will be deter- Svenska Dagbladet stands out increased traffic and profitability. signed an agreement with Apax mined by the result parameters >> 37 THE SCHIBSTED GROUP ANNUAL REPORT 2003 NEWSPAPERS

Sveits

Spania

Paris

Total

0 600 1200 1800 0 1200 2400 3600

20 MINUTES TODAY 20 MINUTES TODAY CIRCULATION DAILY READERS (Figures in 1 000 - Mars 2004) (Figures in 1 000 - December 2003)

for 2005 and 2006. 20 Min ing, five days a week. The main In Paris, 20minutes has continued AS also had important external Holding AG will retain the control- target group is young urbanites to consolidate its position, and its production assignments in 2003. ling interest and will run the news- who “use” the city a lot – a group results are in line with its busi- The printing plant has also been paper until the final transaction of which traditional media, particularly ness plan, despite a very weak effective in obtaining printing 25.25 percent is completed. The newspapers, have found difficult advertising market. With its 1.36 assignments from other news- “commuter” newspaper concept to reach. However, 20 minutes has million readers, the newspaper is papers. Dagsavisen transferred has shown its viability all over quickly managed to create a large the second largest. In February its production to Schibsted Trykk Europe in recent years, and 20 audience in this target group. 2004, 20minutes launched edi- on 1 January 2003. In general minutes has generated very high The Swiss advertising market has tions in Lille, Lyon and Marseille, terms, there is keen competition readership figures in all three coun- continued to be difficult, but the increasing its total circulation in for printing assignments and tries, with a total of 3.5 million situation appears to have bot- France from 450,000 to 675,000. Schibsted Trykk must constantly readers a day, which makes the tomed out. The combination of In 2004, the focus for the 20 min- improve its productivity in order newspaper the sixth largest in good readership figures and sys- utes companies will continue to be competitive. Europe. Revenue growth for 20 tematic, professional sales work be on the profitability of existing Min Holding AG from 2002 to has given 20 minutes strong operations. At the same time, PRODUCTION 2003 was 44 percent, and the growth in the advertising market. new and interesting projects will There is still potential for improve- first two months of 2004 also 2003 saw the Company deliver its be constantly evaluated. It is ment in terms of production- show strong growth compared first annual operating profit. The expected that the advertising mar- related matters, and efforts are with the same months in 2003. Spanish advertising market has kets of Switzerland, Spain and being made to improve output 20 minutes will also be able to also been difficult, but stabilised France will begin to improve dur- capacity and reduce misalign- form the basis of further invest- in 2003. 20minutos increased its ing 2004. ment. A waste-paper project ment in these large markets in revenues by 46 percent in 2003 was initiated early in 2004. mobile, Internet and spin-off compared with 2002, and A conversion of plate production products. Since the “20minutes” achieved its first break-even in the SCHIBSTED TRYKK at the supplier Agfa resulted in free newspaper concept was second and fourth quarters. In Schibsted Trykk major production problems. developed by Schibsted and first 2003, 20minutos expanded to (NOK million) 2003 2002 There was a successful conclu- launched in December 1999, it two new cities in Spain, Seville Operating revenues 662 691 sion to Schibsted Trykk’s negoti- has spread to 11 cities in three and Saragossa, and enjoyed Operating expenses (649) (648) ations with the supplier, with the countries. Further expansion in strong growth in readership, Operating profit installation of new equipment. Spain is planned in spring 2004. enabling the newspaper to rank (loss) (EBITA) 13 43 Aftenposten’s introduction of a The 20minutes concept is based as second-largest in Spain. Only tabloid section of the morning on newspapers which give their El Pais is larger. The biggest chal- Operating margin edition gave a more difficult print readers rapid updates and service, lenge in Spain is still the fierce (EBITA) (%) 1,9 6,3 production, which affected regu- with a focus on four areas: news, competition with Metro larity. The printing of VG on entertainment, consumer material/- International, and the attention the Number of employees 295 300 Sunday was reduced from two to guides and interactive services. free newspaper market is begin- one printing press in September. The newspaper is distributed at ning to receive from the estab- In addition to printing Aften- There are plans to improve public transport points in the morn- lished, traditional newspapers. posten and VG, Schibsted Trykk productivity and regularity even >> 38 THE SCHIBSTED GROUP ANNUAL REPORT 2003 NEWSPAPERS

more in the coming years. TIDNINGSTRYCKARNA downs and web breaks, caused During the year, the Company by poor paper quality, led to pro- continued its work to reduce Tidningstryckarna duction disruption. The produc- sickness absence. The absence (SEK million) 2003 2002 tion volume, measured in the project was concluded in March, Operating revenues 430 465 number of printed pages, in- with a number of proposals put Operating expenses (440) (456) creased for Aftonbladet and forward. Sickness absence con- Operating profit Svenska Dagbladet, but there tinued at its high level, totalling (loss) (EBITA) (10) 9 was a small reduction in ordered 17 percent in 2003. In 2004, the copies. The printing of Metro Company will invest in and Operating margin and other external printing assign- implement new measures to (EBITA) (%) (2,4) 1,9 ments improved, as a result of improve the working environ- increased use of colour. All ment. It is the Company’s goal Number of employees 227 220 agreements relating to perma- SCANPIX to reduce sickness absence to nent and temporary external SCANDINAVIA a normal level in a year or so. In 2003, Tidningstryckarna assignments were renewed for Scanpix Group Aftonbladet Svenska Dagbladet 2004. Personnel expenses were (SEK million) 2003 2002 FINANCIAL SITUATION AB saw its operating profit fall higher in 2003 than in the previ- Operating revenues 139 147 The reduction in turnover in 2003 sharply compared with 2002. ous year, due to wage increases, Operating expenses (130) (140) compared with 2002 is largely This is largely due to reduced overtime and a training pro- Operating profit due to reduced prices. The lower turnover from granting a major- gramme for middle management. (loss) (EBITA) 9 (7) profit can be attributed to customer discount of SEK 12.3 In 2002, Tidningstryckarna in reduced prices, increased over- million to Aftonbladet and Stockholm launched an environ- Operating margin time costs and allocation of pen- Svenska Dagbladet. mental project for cleaning rub- (EBITA) (%) 6,3 (4,4) sion expenses. External printing During 2003, considerable expens- ber blankets in the printing assignments, with increased es accrued, as a result of delayed presses. The project received a Number of employees 98 100 sales and a better contribution delivery to the two newspapers. grant of SEK 13 million from the margin, have reduced the nega- This was caused by unstable sum- EU, paid in 2002 and 2003. The Scanpix Scandinavia AB is the tive effects. Despite lower mer production and a new agree- aims of the project were to cut leading picture agency in prices in 2004, the goal is to im- ment between the parties. the use of solvents by 90 per- Scandinavia, with operations in prove profit by reducing costs. cent, and reduce the number of Norway, Sweden, Denmark and PRODUCTION hours spent on cleaning and Estonia. Schibsted owns 75 per- In other respects, production increase the number of operat- cent of the Company. The other was satisfactory compared with ing hours. The successful project owners are Det Berlingske the major problems of 2002, was completed in autumn 2003. Officin AS (15 percent) and NTB when installation of new colour It was decided to invest in envi- AS (10 percent). Operations printing presses led to a large ronment-friendly production include production, archiving, number of web breaks and deliv- technology on another printing indexing, procurement and sale ery problems. Technical break- press. of news and file images in all >> 39 THE SCHIBSTED GROUP ANNUAL REPORT 2003 NEWSPAPERS

genres. Customers include all Eesti Meedia is the largest media titles, continues its positive trend The TV channel Kanal 2 achieved types of media, from news- company in Estonia, with opera- by reporting excellent results, and a considerable improvement, papers and magazines to tions in newspapers, magazines, is one of the most profitable parts both in viewing figures and Internet and mobile services. printing, Internet, radio and infra- of the Estonian media group. All financial results in 2003. The Scanpix has agreements to sup- structure companies. The Group the most important titles per- channel is established as the ply news photos to the largest publishes the largest national formed well and the Company second-largest of Estonia’s three newspapers in Norway, Sweden, quality newspaper Postimees, the was also able to strengthen its TV channels, and achieves good Denmark and Estonia. tabloid SL Õhtuleht (50 percent), position in the production of cus- viewing figures in peak time and The Company has the Scandi- the magazine company Ajakirjade tomer and consumer magazines. among the important target navian rights to sell Reuters’ and Kirjastus (50 percent) and five Kroonpress is a modern, well run group, 18-49 year-olds. EPA’s pictures and videos, and local newspapers (50-100 per- printing plant and an important Turnover increased by 67 per- also represents a large number of cent). In addition, the Group owns contributor to revenues in Eesti cent compared with 2002, and leading foreign picture agencies the Kroonpress printing plant and Meedia. In 2003, Kroonpress the operating loss was cut to and archives, such as AP, AFP, has shares in radio operations. accounted for more than half of EEK 3 million from EEK 18 mil- Corbis, SIPA, Camera Press and In autumn 2003, Schibsted cele- profits. During the year, the print- lion the previous year. The TV Lehtikuva. The Scanpix Group brated its fifth anniversary of taking plant invested in new machin- market share among the reported much improved results ing over the Postimees Group, ery, which helped to strengthen Estonian media is expected to for 2003 compared with the previ- which became what is now Eesti its position even more. By the increase in 2004. Kanal 2’s ous year. Losses have been Meedia. Postimees kept up its end of 2002, the Company had stronger position means that we turned into profit and the improve- pleasing circulation development, reached full production capacity. can expect the channel to fur- ment has come during a market with a seven-percent increase in The currency situation, with the ther improve its results. situation of falling sales. All sub- subscription figures. Despite a weak dollar, had contributed to sidiaries have shown positive weaker advertising market in reduced opportunities in the dol- Operating profit for ESTONIA results. Cost savings were suc- 2003, the newspaper managed to lar-based export markets. (EEK million) 2003 2002 cessful and savings targets were maintain the same profit level as Kroonpress still managed to main- Operating revenues 562 504 achieved. in 2002, thereby confirming its tain the same profit level as in Operating expenses (507) (471) position as Estonia’s leading quali- 2002 and an operating margin of In 2003, the Company invested ty newspaper. However, the 15 percent. With new equipment Operating profit (EBITA) 55 33 in the commercial market with news-paper is in a tough competi- installed, the Company can look GW and other revenues the launch of Scanpix Creative. tion situation and even though forward to new growth in and expenses (25) (37) The service is aimed at the Postimees is struggling with low turnover and profit in 2004. Operating profit (EBIT) 30 (4) advertising, publishing and busi- operating margins, the main focus ness sectors, with production from now on is to further KANAL 2 Operating margin and sale of rights-protected illus- strengthen the newspaper’s posi- EBITA (%) 9,8 6,5 tration photos. Creative achieved tion in the readership market, par- Kanal 2 – Operating result high turnover growth at the end ticularly in the capital, Tallinn. This (EEK million) 2003 2002 Exchange rates 2003 2002 of the year and already repre- means that continued initiatives Operating revenues 91 58 EEK / NOK 51,13 48,00 sents 10 percent of turnover, to improve and strengthen the Operating expenses (94) (76) which makes it an important editorial product have top priori- Operating profit future growth area. ty. Good results in other opera- (loss) (EBITA) (3) (18) tions, particularly printing, enabled Eesti Meedia to report sound Operating margin operating margins. EBITA (%) (3,0) (31,0)

SL Õhtuleht further enhanced its Number of employees 59 56 position in the readership market and is now established as the most read newspaper in Estonia. The newspaper also managed to increase its market shares in the ESTONIA advertising market and ended the year with an operating margin of EESTI MEEDIA GROUP 16 percent. The five local news- Eesti Meedia Group – Operating result papers controlled by Eesti Meedia (EEK million) 2003 2002 delivered their best results ever. Operating revenues 474 449 For many years the circulation Operating expenses (417) (397) figures for these newspapers Operating profit have shown a slight tendency to (loss) (EBITA) 57 52 decrease, but the trend has been reversed and a modest increase Operating margin is expected in the coming years. EBITA (%) 12,1 11,5 Advertising sales continue to increase. Number of employees 732 629 The magazine company Ajakirjade Kirjastus, which publishes 15 >> 40 THE SCHIBSTED GROUP ANNUAL REPORT 2003 TV, FILM & PUBLISHING

2003 was a successful year for the TV, Film and Publishing business area. Schibsted’s TV and film companies achieved turnover of NOK 1.3 billion, representing a growth of 11%.

The operating profit was almost JAN ERIK KNARBAKK EXECUTIVE VICE PRESIDENT three times as high as in 2002. TV, FILM & PUBLISHING TV, Film & Publishing >>p.40 Metronome Film & Television >>p.41 Sandrew Metronome >>p.42 TV 2 Gruppen >>p.43 Bladkompaniet >>p.44 Chr. Schibsteds Forlag >>p.45 Dagens Medisin, Dine Penger >>p.46 Maison, Tique, Schibsted Internasjonale Bøker >>p.47 Svenska Förlaget

The Group’s publishing sector increasing. The Scandinavian process the Schibsted Group’s pling its profit from the previous was yet again able to show solid DVD market is experiencing very Board decided, in December year. In 2003 the production results, with an operating margin strong growth. 2003, that the Group’s market has been characterised of 10 percent. In addition, the The Schibsted companies in the Norwegian publishing companies by restraint. At the same time, TV2 Group, which is an associat- TV and film sector aim to strength- should be merged. The goal is to the Nordic advertising market ed company, contributed a solid en their position further – both make use of common resources has been at the same low level profit after taxation. The TV and as suppliers of TV programmes amongst units that have a great as in the previous year, albeit film businesses have been an in Scandinavia and as distribu- deal in common. The aim is also with slight growth in the first important part of the Schibsted tors of Nordic and international that the publishing units shall be half of the year, but with Group’s strategy in recent years, feature films through the chan- able to continue their develop- renewed weakness towards the and much of the Group’s growth nels that are, and will become, ment and to run profitable and end of the year. The exception is has come in the TV and film sec- of commercial interest. The avail- good publishing operations. The Denmark, where the end of the tor. Building a strong able TV and film expertise that formal aspects of the merger year was also positive, primarily Scandinavian position as a con- the Schibsted Group has in all of process will be completed in the on account of changed rules for tent provider for TV has been a the Nordic countries is a power- course of the first quarter of medicine advertising. Cost cut- stated ambition since Schibsted ful weapon in the competition 2004. ting at the state-owned channels started its first production com- for current and future visual as a result of demands for in- pany in 1993. At the end of media users. Specialist expertise creased viewing time, as well as 2003, Schibsted was by a clear is also central to the develop- METRONOME FILM preparations for the privatisation margin the largest independent ment of Schibsted’s publishing & TELEVISION of TV 2 in Denmark, has helped player in the market in the companies. Through acquisitions to further increase competition Scandinavian market. As a and organic growth, the publish- (SEK million) 2003 2002 in TV production. whole, the TV and film compa- ing companies have over the Operating revenues 801 747 The Metronome Group has met nies’ 2003 results indicate better past few years become a group Operating expenses (745) (732) these challenges well, and has times to come in the Nordic TV of specialised units which, Operating profit succeeded in increasing turnover production sector after a couple through their expertise and cre- (loss) (EBITA) 56 15 by seven per cent to SEK 801 of challenging years for the ativity, have proven that they can million. The uncertainty surround- industry. The digitalisation make an impact on the market. EBITA operating ing these markets has made it process in the TV sector has The profit performance of the margin (%) 7,0 2,0 necessary to carry out cost started. Internet TV has made its publishing group as a whole has adjustments, in order to be in a entrance. Broadband capacity is been stable and good. As a step Number of employees 488 565 better position to meet any fluc- being expanded. More channels in the development of the pub- tuations. Metronome Film & and an increasingly competitive lishing sector in the Schibsted The Metronome Film & Television is still the Nordic TV market mean that there is Group, a deliberate process of Television Group, which is region’s largest independent pro- growing competition for good co-location has taken place, responsible for all TV and film duction company for TV pro- quality content. Demand both for along with increasing co-opera- production in the Schibsted grammes, drama series, feature national products and for the tion between the various pub- Group, made strong progress in films and commercials, and is rights to international films is lishing units. As a part of this 2003 and succeeded in quadru- now more than twice as large as >> 41 THE SCHIBSTED GROUP ANNUAL REPORT 2003 TV, FILM & PUBLISHING

TV / Film – Operating result (NOK million) 2003 2002 Operating revenues 1 258 1 131 Operating expenses (1 192) (1 105)

Operating profit (loss) (EBITA) 66 26 GW & other revenues & expenses (16) (16) Operating profit (loss) 50 10 Income from associated companies 61 57

EBITA operating margin (%) 5,2 2,3

its nearest competitor. In 2003 tions is that they are not fully Poor demand for commercials SANDREW the Group was responsible for a financed by the TV channels throughout the year has resulted METRONOME number of successful produc- themselves, but are expected to in the production area for com- tions, including three further generate revenue from the audi- mercials having to undergo (SEK million) 2003 2002 series of “Big Brother”. Since ence. In 2003 the production major changes. This also applies Operating revenues 1 272 1 270 the start of 2000, the Group has companies Meter and Rubicon to European Film Group, which Operating expenses (1 231) (1 233) produced as many as nine series started producing this type of has undergone changes and Operating profit with this format. programme. In the feature film reductions to its organisation (loss) (EBITA) 41 37 sector, Filmlance has made and to staff. On the positive excellent progress with films side, it is worth mentioning that EBITA operating such as ”Elina”, which has won the Norwegian and Finnish busi- margin (%) 3,2 2,9 23 prizes all over the world. The nesses have been successful. film has also been nominated as The production company Otto, Number of employees 437 435 Finland’s Oscar contribution and which is part of the European for two Guldbagge awards in Film Group, has established For Sandrew Metronome, 2003 Sweden. Another success is the itself as Finland’s second largest was characterised by very good feature film “The guy in the production company of commer- progress in the areas of film and grave next door”, which has cials. The prospects for 2004 are video distribution. The annual sold almost a million cinema considered good. The production operating profit for this impor- tickets in Sweden. companies in the Metronome tant part of the business was Group are well prepared and the best in the company’s histo- have adapted their resources to ry. Meanwhile, the Group's the prevailing situation. The Swedish cinema business had a Other important productions order situation is good for the weak year, which reduced the include ”Pop Stars”, ”Alla mot first half of the year. It includes, overall profit considerably. Work en”, ”Jeopardy!” and the travel amongst other things, another is being done on solutions to programmes ”När & Fjärran” run of “Big Brother” in Sweden, improve profitability and reduce and ”Sigurds Verden”. The as well as the reality shows risk in the Group's cinema busi- Group also produces so-called “Single 24/7” in Norway and ness. In spite of a weak year for lifestyle programmes in Sweden, “The Block” in Denmark. the Swedish cinema business, Denmark and now also in the Group’s operating profit was Finland. In Norway, more than Metronome Studios now has SEK 41 million, which is SEK 4 1000 episodes of the daily soap commissions in central Europe, million higher than in 2002. opera Hotel Cæsar have been in addition to throughout the Sandrew Metronome’s business produced. Nordic region, which means that concept is to create, buy and Interactive TV is an important 2003 was a very good year for manage feature film rights for all trend in the TV market. The spe- the company. current and future means of dis- cial thing about these produc- tribution. Schibsted and the >> 42 THE SCHIBSTED GROUP ANNUAL REPORT 2003 TV, FILM & PUBLISHING

Nordisk film 4% Jarowskij 8% Metronome 31% MTV/Mastiff 10%

Strix 16%

Andre 31%

THE NORDIC TV AND FILM PRODUCTION COMPANIES MARKET SHARES (TURNOVER) Source: Metronome

Swedish foundation Anders rights from independent produc- by 12 per cent in 2003. Sandrew The development of new forms Sandrews Stiftelse (Trust) each ers. In 2003, Sandrew Metronome maintained its mar- of distribution such as “video on owns 50 percent of the company, Metronome has distributed a ket share. The DVD format is demand” are being monitored, which is one of three large inte- number of the largest films in making strong progress, with and films are being distributed to grated film companies in the the Nordic region: Harry Potter sales increasing 60 percent in selected businesses that have Nordic region. The Group’s par- (video), The Matrix, Chicago, 2003, whilst sales of films in the this as a core business area. We ent company and head office is Kopps, Buddy and many more. old VHS format are decreasing are working actively to prevent in Stockholm, and it has national The Nordic market for film distri- significantly. The VHS format is pirate copying and illegal down- subsidiaries in Norway, Sweden, bution to cinemas is stable. The expected to be phased out of loading of films from the Finland and Denmark. market in 2003 was unusual, the market by 2006. In parallel Internet in the markets where Sandrew Metronome operates in however, in that local films with strong volume growth for the Group is represented. the majority of “windows” in the gained a stronger position. This DVDs, there is noticeable pres- The market for the distribution film industry’s value chain: film was particularly noticeable in sure on prices in the market. and sale of video films is expect- distribution to cinemas and on Norway, where cinema visits to In spite of the pressure on prices, ed to grow very strongly. video and TV, participation in film Norwegian films rose significant- the value of the market is ex- The market for films distributed productions, as well as operating ly on account of several com- pected to grow by 10-12 percent to cinemas is expected to be sta- cinemas. The most important mercially strong films. In 2003 annually in the coming five-year ble. Sandrew Metronome is cur- business area for the company’s Sandrew Metronome increased period. As prices decrease and rently well-positioned to exploit profitability is currently video dis- its share of this market by focus- DVD films become an impulse future growth in the overall mar- tribution, a development that has ing more on local film projects, buy, grocery stores will become ket. strengthened over the past two amongst other things. This strat- a more and more important dis- years, primarily on account of the egy will be continued in 2004. tribution channel, and they will success of the DVD format in The time between a film being represent a significant proportion TV 2 GRUPPEN the market. This market is launched at the cinema and it of sales volumes in the future. (GROUP) expected to grow significantly in being released on video is con- Sandrew Metronome operates the coming years as well. The stantly decreasing. Today it is not cinemas in Norway, Sweden, (NOK million) 2003 2002 financial results of the company unusual for only four to six Finland and Denmark. The Operating revenues 1 618 1 561 are to a large extent dependent months to pass between a film Nordic market for cinema films Operating expenses (1 423) (1 353) on the commercial success being launched at the cinema and is stable. In Sweden the cinema Operating profit achieved by the products it dis- it becoming available on DVD. business has lost market share (loss) (EBIT) 195 208 tributes. The success rate and This has made it more important in 2003 on account of increased profitability of individual film proj- to be commercially successful in competition and weak access to EBIT operating ects can vary greatly. Sandrew the initial period after the launch. major commercial films. The margin (%) 12,1 13,3 Metronome distributes Warner Ever increasing amounts are results of the cinema businesses Bros’ films to cinemas and on therefore being invested in mar- in Denmark and Finland have 2003 started just as well as video in Norway, Sweden, keting, particularly for the largest improved, and our position in 2002 finished for TV 2, and for Denmark and Finland. In addition American film titles. these markets has strength- the first time the channel made it buys and manages film and TV The Nordic video market grew ened. an operating profit in the first >> 43 THE SCHIBSTED GROUP ANNUAL REPORT 2003 TV, FILM & PUBLISHING

60 PUBLISHING – Operating result (NOK million) 2003 2002 Operating revenues 348 339 40 Operating expenses (313) (305)

Operating profit (loss) (EBITA) 35 34 20 GW & other revenues & expenses (9) (9) Operating profit (loss) (EBIT) 26 25 0 EBITA operating margin (%) 10.1 10.1 Jul 03 Jul Jul 02 Jul Okt 03 Okt 02 Apr 03 Apr 02 Jan 03 Jan 03 Feb Jan 02 Jan 02 Feb Jun 03 Jun Jun 02 Jun Des 03 Des 02 Mai 03 Mai 02 Sep 03 Sep Sep 02 Sep Mar 03 Mar 02 Aug 03 Aug 02 Nov 03 Nov Nov 02 Nov

VIEWERS PER TV CHANNEL IN NORWAY 2002-2003

NRK1 TV 2 TVNorge TV 3 NRK2

an audience share of 29 per cent BLADKOMPANIET In the course of 2003 the com- against 32 per cent for 2002. In petitive situation has further comparison, TV Norge increased (NOK million) 2003 2002 intensified, with more players in its share by 0.8 percent to 10.4 Operating revenues 204 190 the market distributing an increas- per cent. The increased competi- Operating expenses (184) (169) ing number of paperback series tion was also an important rea- Operating profit and comic strips through son for the programme costs (loss) (EBITA) 20 21 Bladcentralen. Bladkompaniet has increasing by eight percent in in 2003 raised its market share relation to the previous year. EBITA operating in the Norwegian comic strip TV 2 Nettavisen was acquired at margin (%) 9,9 11,0 market, and now has 19 percent the turn of the year, and integra- of total comic strip sales at tion with tv2.no continued Number of employees 73 78 Bladcentralen. This includes the quarter. As it turned out, how- throughout 2003. This has not monthly Pondus magazine, ever, the positive trend did not yet, however, produced results, In 2003 Bladkompaniet AS had which has an average sale of continue throughout the year. and the website made an oper- the highest turnover in its histo- 57,000 single copies in addition After a strong first half of the ating loss of NOK 10 million for ry. An increased focus on its to approx. 10,000 subscribers, year, the autumn was somewhat the year as a whole. TV Norge core areas of paperback series making it Norway’s second weaker than expected, both in has had a very good year in 2003. and comics for the mass market biggest comic magazine. Growth terms of viewers and advertis- Its strengthened position has reaped benefits. in the comic strip market is in ing. The combined result of amongst attractive viewer seg- Bladkompaniet has a strong the coming years expected to these challenges is an operating ments has produced results, and position as a publisher both of come from the Japanese manga margin that is slightly down on TV 2’s share of the result has Norwegian and foreign paper- last year’s, at 12 percent against gone from being a loss of NOK 2 backs, and of comics in maga- 13 percent for 2002. However, million in 2002 to being a profit of zine, album and book format. positive developments in associ- NOK 19 million in 2003. Being distributed through ated companies and in some of TV 2 took yet another step in the Bladcentralen the products can the Group's investments meant direction of becoming a “broad, sell in large numbers, in addition that the profit before taxes was electronic media group” when at to sales through our own sub- higher than in 2002, at NOK 188 the end of July it signed a con- scription and mail order depart- million against NOK 166 million. tract to buy 34 percent of ment and in bookshops. The battle for viewers was Kanal24 through a private place- The number of publications in tough in 2003. There was partic- ment. The Group also has an 2003 was approx. 325, consist- ularly strong competition in the option to increase its shareholding of 168 books and 157 maga- autumn, and the other commer- ing to 51 percent. zines, comic books and cial channels succeeded in gain- Christmas special editions. The ing audience share at the majority of books and comic expense of TV 2. For the year as strips are published in series at a whole, the channel achieved regular intervals. >> 44 THE SCHIBSTED GROUP ANNUAL REPORT 2003 TV, FILM & PUBLISHING

1500 %

1000 %

500 %

0 % TV2 TV Norge TV3

TURNOVER PER TV CHANNEL IN NORWAY 2003

(Figures in NOK million)

series. In response to this, in Bladkompaniet’s 11 special BLADKOMPANIET’S FOREIGN Bonnierförlagen AB as its owners. October Bladkompaniet Christmas editions had a market SUBSIDIARIES The company is to publish manga launched the new magazine share of 22 per cent, up three Full Stop Media AB is products in Sweden. Since 1982 “Manga Mania” as a joint proper cent on 2002. A large part of Bladkompaniet’s ”bridgehead” in Boknöje AB has run a book club duction with its Swedish sub- the increase can be ascribed to the Swedish comic strip market. and has sold translated sidiary Manga Media AB. good sales of the Larson and Amongst other things, the com- Norwegian books from Agreements with two large Tom & Jerry Christmas albums, pany publishes “Larsons Gale Bladkompaniet’s series, primarily Japanese publishers ensure that as well as “Pondus Jul”, which Verden” and “Tom & Jerry” as Margit Sandemo’s bestselling Bladkompaniet has the rights to alone sold over 77,000 copies. part of Bladkompaniet’s licensing series. The Boknöje book club manga products both in maga- The main goal for 2004 is to agreement with Far Works and has approx. 6,000 members. zine, album and book format. In achieve continued profitable Warner. In addition it publishes a Turnover is stable. The company 2003 the number of Norwegian growth in the core areas of number of its own monthly maga- is based in Helsingborg, and in paperback series at Bladcentralen paperbacks and comic strips. zines and comic books. In total it 2003 it had a total of 23 publica- was greater than ever, and at the One of the challenges in the had 81 publications in 2003. After tions. end of the year Bladkompaniet book market is to appear as an three years of operation the com- had eight Norwegian series run- attractive publisher for pany made a positive contribution, ning. This year’s biggest project, Norwegian authors of series, in addition to synergies relating to CHR. SCHIBSTEDS “Hannah – en slektssaga” by and to cultivate them into leading joint development costs and joint FORLAG the author Laila Brenden, was figures in the special genre of production with Bladkompaniet. launched in July, and after only popular literature. In the comic (NOK million) 2003 2002 a few months it had over 7,900 strip market the challenges are Operating revenues 34 36 subscribers, in addition to over to further develop profitable Operating expenses (32) (33) 22,000 single copy sales of each magazines based on competitive, Operating profit edition. In 2003 Bladkompaniet time-limited royalty and licence (loss) (EBITA) 2 3 had a market share of 37 percent agreements, whilst establishing of the total turnover of books at our own titles that the company EBITA operating Bladcentralen, down 1 percent owns the rights to. With a high margin (%) 6,5 8,3 on the previous year. The biggest level of specialist expertise, high- success of the year in terms of ly motivated staff, a cost-con- Number of employees 16 16 books was the third Pondus scious business culture and a book, “Pondus – Hat Trick”, with well established network of con- Above all, 2003 was a gratifying text and drawings by Frode tacts, Bladkompaniet is in a good year for Norwegian fiction in Øverli. By the end of the year position to succeed against ever bookshops, with a strong focus the book had sold 35,000 tougher competition. on several young authors. In total copies. In December 2003, sales the turnover of Norwegian adult of the uniquely Norwegian phe- Manga Media AB is a 50-50 joint fiction increased by 31 percent nomenon of special Christmas venture, with Bladkompaniet AS from 2002 to 2003. In Chr. editions were greater than ever. and Bonnier Carlsen, Schibsteds Forlag’s main area, >> 45 THE SCHIBSTED GROUP ANNUAL REPORT 2003 TV, FILM & PUBLISHING

non-fiction for adults, there was DAGENS MEDISIN however a nine per cent reduction in the total turnover at book- (NOK million) 2003 2002 stores. In total this meant that Operating revenues 11 13 the company’s turnover fell Operating expenses (11) (13) slightly in 2003. The translation Operating profit of David Beckham’s autobiogra- (loss) (EBITA) - 0 phy ”My Life” was one of the main attractions on Chr. EBITA operating Schibsted Forlag’s autumn list. margin (%) 3,2 4,1 The book was one of the world’s biggest sellers in 2003, and also Number of employees 9 11 featured on Norwegian book- stores’ bestseller lists in the Dagens Medisin is an advertising Christmas run-up. 20,000 copies financed specialist journal focus- of the book were printed, and ing on health issues, with it was the Schibsted book that Norwegian doctors, pharmacists sold most copies after the annu- and nurses as its target group. al classics “Hvem Hva Hvor” The run of 18,600 copies is only and “Guinness World Records”, distributed to people in the tar- of which 30,000 copies each get group, and the journal can were printed. Sportsboken therefore carry advertisements appeared in a new format in for prescription medicines. 2003. Earlier in the year the company bought the rights to Turnover in 2003 was 16 percent this annual publication from down on 2002, which is connect- Sportsboken AS. The revamp ed with five of the largest phar- was a success and the book maceutical players stopping sold out. Hvem Hva Hvor and advertising between 1 April and Junior-HHH were also sold out 1 October. In addition, the mar- ly by Schibsted and the publishing number of subscribers would fall before Christmas. Another ket for specialist periodicals company Medicine Today slightly. In total the company has autumn publication that did well experienced a general downturn International. sold around 730,000 magazines in 2003 was art historian Tommy in advertising turnover of approx. in 2003. This is 11 percent lower Sørbø’s ”Norges kunsthistorie – nine per cent in 2003. In spite of than the record year of 2001, but en kladd”. The funniest book of this, Dagens Medisin delivered DINE PENGER 14 percent over the total sales in the year, thought VG, who gave its best result ever. This is due to 1999, which was the year before it a six out of six. That resulted heavy cost-cutting and a certain (NOK million) 2003 2002 the company had a strong strat- in three editions being printed in degree of compensation for the Operating revenues 43 44 egy of offering short and non- a hectic Christmas run-up. The lost revenues achieved through Operating expenses (34) (35) binding subscriptions. The Smartguide series of travel guides actively working on new advertis- Operating profit change in focus has had the were also given a good reception ing markets. The newspaper (loss) (EBITA) 9 9 desired effect on profitability, – small, handy guidebooks, cur- increased its market share of the and the magazine delivered a rently for 12 destinations. advertising sector in its specialist EBITA operating very strong operating margin of field from 44 percent in 2002 to margin (%) 21,1 19,2 21 percent in 2003. 56 percent in 2003. The Internet company Dine Dagens Medisin is a good exam- Number of employees Penger Online is experiencing ple of a publication distributed free rapid progress. The number of to its readers not necessarily The year 2003 was a year during visitors, advertising revenues being inferior to a paid-for news- which the company consolidated and profitability all increased paper in terms of content. The its position. The poor economic sharply in 2003. For the first editorial team at Dagens Medisin climate meant that there was no time, the company has made an has extensive specialist knowl- foundation for large investments operating profit. In total the Dine edge, which is supported by a and risky choices. Looking back Penger companies as a whole reader survey from 2002 showing at the year it appears that a care- made an operating profit (EBITA) that the journal is very widely read ful strategy in 2003 was the of NOK 9 million and had an by its target group. The journal is right approach. Dine Penger is operating margin of 18 percent. also often quoted as the source still Norway’s largest financial This represents clear progress for health news both on TV, radio magazine by a clear margin. since 2002, when the margin and in newspapers. The printed Focusing on the profitability of was 14 percent. Many of the edition of Dagens Medisin is pub- subscribers has resulted in circu- company’s activities, both edito- lished every other week, and is lation falling by 9.5 percent to rial and sales-related, faced seri- supplemented by an updated 69 362. For the past two years ous challenges in 2003 as a online version (www.dagensme- the company has only aimed for result of the poor economic cli- disin.no). The journal was estab- binding subscriptions, and it was mate. The macro-economic lished in 1998 and is owned equal- therefore expected that the >> 46 THE SCHIBSTED GROUP ANNUAL REPORT 2003 TV, FILM & PUBLISHING

situation meant that the interest Maison has maintained its posi- girls, and will in the course of the ber of copies and turnover. This in traditionally important areas of tion as one of Norway’s leading year be relaunched in a new format. was slightly spoilt by the fact material, such as the stock mar- interior design magazines in a that margins were somewhat ket and personal financial invest- highly competitive market. SCHIBSTED INTER- weaker as a result of pressure ments like houses and cars, was Circulation increased by as much NASJONALE BØKER on prices from other players. very limited for large parts of the as 15 percent, and the magazine year. In addition, the competition strengthened its position as the (NOK million) 2003 2002 Other big titles in the course of for readers is getting ever tough- leading publication for advertis- Operating revenues 37 39 the year have included Michael er, with newspapers and broad- ing in its sector. This year’s Operating expenses (35) (37) Moore’s social satires “Stupid cast media increasingly focusing kitchen edition was fully 316 Operating profit white men” and “Dude, where’s on personal finance. In the pages long, making it Norway's (loss) (EBITA) 2 2 my country”, which were both advertising market, some of the largest ever. Since Schibsted helped by Moore’s TV program- magazine’s most important acquired it at the turn of the year EBITA operating mes during the year. The trend sources of advertising, the finan- 2000/2001, Maison has continu- margin (%) 5,9 6,2 of growth in fiction and a decline cial and car industries, were ously increased its circulation in travel literature is continuing. amongst those hardest hit by and made a profit, and 2003 was Number of employees 4 4 This has been a trend over recent the downturn, and advertising no exception in this respect. In years, and SIB is adapting its revenues fell by 7 percent com- 2004 the number of issues of range accordingly. pared to 2002. Low interest rates Maison will increase from six to The big event of the year on the and generally positive expecta- nine, with two of the editions book front was the launch of the The market has moved towards tions for the economic climate in being special magazines about fifth Harry Potter book, “Harry several of the large groupings 2004 mean that Dine Penger’s food and wine. Last year’s new- Potter and the Order of the choosing to import directly, with prospects are good. comer, Tique, has positioned Phoenix”. On its introduction in SIB being used to ensure a wide itself as the only purely June it surpassed all expecta- product range. Continuous work Norwegian fashion magazine. tions and sold 36,000 copies, is being done on responding MAISON OG TIQUE The magazine’s four issues per which is a new record for to this development by having year focus on spring, summer, Schibsted Internasjonale Bøker products that are competitive in (NOK million) 2003 2002 autumn and winter fashion. In (SIB) both in terms of the num- terms of price and availability. Operating revenues 21 16 spite of both circulation and Operating expenses (23) (18) advertising turnover growth, the After SIB’s distributor gave noti- Operating profit magazine made a loss in 2003. fication of a steep increase in (loss) (EBITA) (2) (2) The specialist magazine publish- the price of its services, a deci- er that is Schibsted’s develop- sion was made in the course of EBITA operating ment unit for magazine publica- the summer to move our stock margin (%) (8,6) (15,0) tions will in 2004 take over to Bladkompaniet’s warehouse. responsibility for the youth mag- This will make it easier to use Number of employees 13 15 azine “4U – for you”. The maga- warehouse capacity more effi- zine is aimed at young teenage ciently, and to achieve synergies >> 47 THE SCHIBSTED GROUP ANNUAL REPORT 2003 TV, FILM & PUBLISHING

on the cost side. Den Norske company’s most important pur- SVENSKA FÖRLAGET turned in the direction of books Bokbasen will continue to be an chasing currencies, the US dollar that are suitable for these sales important interface with the and the British pound, had a cor- (SEK million) 2003 2002 channels. Apart from the pub- company’s customers. respondingly negative effect. Operating revenues 16 16 lishing business, the company In 2003, as in the previous year, Operating expenses (17) (16) also runs the book club the strong Norwegian krone Operating profit Bokklubben Liv & Ledarskap as played an important part in the (loss) (EBITA) (1) - a natural extension of its core good result achieved, and also business. The book club is an made it possible to maintain low EBITA operating important channel for selling and prices. Its weakening towards margin (%) (4,4) (1,0) marketing Svenska Förlaget’s the end of the year against the books to the company’s main Number of employees 8 8 target groups. Like other Swedish book clubs, it is feeling Svenska Förlaget, Schibsted’s the increasing competition from Swedish book publisher, is a Internet bookshops. small specialist publishing company, with specialist literature and textbooks on management and personal development as its core areas. In recent years the company has in addition developed a niche in historical and gift books. In 2003 the company launched 32 new titles. The company changed its management in March 2004, with Peter Stenson taking over from Lena Kamhed as the publisher. In a declining Swedish bookshop market, turnover through bookshops increased by six percent compared to 2002. Bookshop sales and direct sales to large companies/organisations are expected to become more important to Svenska Förlaget in the future, and the company’s publication profile is being >> 48 THE SCHIBSTED GROUP ANNUAL REPORT 2003 BUSINESS DEVELOPMENT

Schibsted has over the past 10 years followed a conscious strategy of diversification from being primarily a Norwegian newspaper group to a Nordic multi-channel media content SVERRE MUNCK producer and distributor. EXECUTIVE VICE PRESIDENT STRATEGIC PROJECT AND BUSINESS DEVELOPMENT

This diversification spreads the existing portfolio, thereby build- Inpoc's own magazine. is considered one of the leading group’s business risk over sever- ing on our established brands The Group is now established in companies in e-commerce in al countries and markets, while and market positions. Denmark. The Company is con- general. Bokkilden is in the at the same time retaining the Furthermore, priority is given to stantly developing new services process of converting to a new focus on quality media products projects in our home markets, based on state-of-the-art tech- technical platform, and will be to mass audiences. Further- which in this context include nology and the needs of mobile launching Nye Bokkilden in May more, due to the Nordic coun- Spain, France and Switzerland in people. New JAVA and MMS 2004. Nye Bokkilden will provide tries’ leading position both as addition to the Nordic and Baltic applications will be launched in more automated e-commerce innovators in digital and mobile countries. 2004. processes, better tools for per- media and within the newspaper sonalisation and improved user- sector, Schibsted’s know-how SCHIBSTED friendliness. can be used in evaluating expan- TELECOM BOKKILDEN sions outside this region. Schibsted Telecom showed Bokkilden is Norway’s leading highly positive development in online bookstore and offers The euphoria that followed the turnover and market share in more than 1.6 million titles, technology around the turn of 2003. There are two business most of them in English. the millennium has now been areas: Turnover in 2003 was just over followed by proven business • ASP delivers infrastructure NOK 30 million. The number of models. Schibsted is engaged in to media customers, terminal visits, members and the average several of these, notably within suppliers and operators. order value are all increasing. on-line newspapers, on-line • Inpoc is Schibsted’s own Bokkilden has a strong position classified markets, e-commerce, mobile brand for end users. among women, who account for online peer-to-peer merchandiz- The Group’s turnover rose by 50 percent of the customer ing, consumer and business ori- 122% to NOK 122 million. The base. ented mobile products, as well loss was reduced by 83 percent. as within the rapidly growing The operating loss was NOK 6 E-commerce in Norway is free, commuter-oriented news- million, compared with a loss of expanding and, having been papers. aftonbladet.se, vg.no, NOK 37 million in 2002. The present since the advent of aftenposten.no, FINN, overall market for mobile con- commercial Internet, Bokkilden Adexalliance, Inpoc, Blocket, tent services enjoyed strong BokKilden, 20 minutes, growth in the period. In Norway, Scandinavia Online (sold in 2001) this market is currently worth 80% are examples of successful ini- NOK 615 million, which is an tiatives arising within or acquired increase of over 50 percent on 60% by Schibsted over the last years. 2002 and twice that of the radio advertising market, for example. 40% Schibsted has been and will con- Both business areas are grow- tinue to be active in terms of ing, but the Inpoc channels have 20% sourcing, selecting and develop- been particularly successful. ing new business opportunities, Inpoc has over 600,000 mem- 0% and spreading these to existing bers in Norway and Sweden. Its Jul. Feb. Okt. Apr. Jun. Jan. Mai. Des. Mar. Aug. Nov. start-up operations. Priority is website is on the list of the top Sept. given to business ideas and 25 most visited sites in Norway INPOC – MARKET SHARES SMS NORWAY 2003

products that complement our and over 130,000 people receive 2002 2003 >> 49 THE SCHIBSTED GROUP ANNUAL REPORT 2003 MANAGEMENT DEVELOPMENT

For a media group, future competitiveness and the capacity for renewal are closely associated with development of the organisation and attracting talented new individuals.

Schibsted’s future success SCHIBSTED MANAGEMENT For more information about these tionised the market in just a few depends on the Group attracting TRAINEE PROGRAMME AND programmes, please visit years. top talents, developing the best SUMMER INTERNSHIP www.schibsted.no/karriere managers and ensuring that Schibsted has two programmes A market in such rapid change employees’ skills match the which help to secure access to SCHIBSTED MIDDLE requires new skills, both from requirements of the changed young talents. These are the MANAGEMENT PROGRAMME AND managers and employees. This media market. Schibsted Management Trainee MANAGEMENT PROGRAMME calls for increased flexibility and Programme, which was initiated As part of its efforts to develop professionalism in many areas. MANAGEMENT AND TALENT in 1997 and Summer Internship, and retain good managers, For this reason, Schibsted has in DEVELOPMENT which is now entering its second Schibsted arranges two manage- recent years concentrated Schibsted’s goal is “to be season. Each year under the ment development programmes increasingly on skills develop- Scandinavia’s most attractive trainee programme, young talents at Group level. These are the ment in brand management, media group to talents, managers from the top university and col- Middle Management Programme product development, market and employees”. Major initiatives lege environments in Scandinavia and the Management analyses, advertising sales and have been launched to ensure are recruited to a two-year Programme. Both editorial and organisational development. The that the Group achieves its goals programme. administration managers partici- Group has established network in this area. New talents and pate in the programmes and all and working groups, which are management at all levels in the The idea is for these candidates the business areas are represent- important tools in ensuring best subsidiaries are the target to hold managerial positions in ed. The programmes last for one practice among Schibsted com- groups. The intention is to assist Schibsted companies during the year and focus on management, panies. Changed competence recruitment by identifying new course of four to five years and the Schibsted Group and strate- requirements have been a key management candidates, develop- to develop the potential to occu- gic challenges faced by the element in Schibsted’s manage- ing individual managerial skills, py a top management job during media sectors. ment programmes and in the increasing strategic understand- their career. Recruitment takes Group’s management meetings ing and creating meeting places places twice a year, in spring and The Group is keen to recruit in 2003, and will continue to be for the development of experi- autumn. women to the management and in years to come. ences and ideas. talent programmes. Summer Internship gives young Schibsted is basing these initia- people who are studying the COMPETENCE tives on clear humanistic values. opportunity to work in one of the Few industries have undergone At the same time, Schibsted is subsidiaries and to get to know so many changes in the last focusing on the values of a per- Schibsted over a six-week period decade as the media industry. formance culture. These values in July and August. Recruitment The establishment of new chan- require individuals to stretch to this programme takes place in nels for media content, such as themselves, set high quality and spring 2004. mobile phones, broadband, production goals and strive for Internet, free newspapers and constant improvement. commercial TV have revolu- >> 50 THE SCHIBSTED GROUP ANNUAL REPORT 2003 SHAREHOLDER INFORMATION

“Schibsted’s shareholders shall over time take part in the Company’s value creation by receiving a competitive return on their investment through a combination of an increase in the share price and dividends”. TROND BERGER EXECUTIVE VICE PRESIDENT EECONOMY/FINANCE

That was the shareholder strate- ority for Schibsted. Our objec- company’s communications with mately 37 percent. The Board of gy Schibsted adopted, in accor- tives are to increase knowledge the stock market. All financial infor- Directors will request the Annual dance with the Board’s resolution about the Company, to establish mation relating to Schibsted is General Meeting to approve a of 1992 when the Company was confidence in Schibsted among made public in the form of presen- dividend of NOK 3,00 per share, listed on the Oslo Stock investors and to increase the liq- tations, quarterly and annual an increase of 50 percent on the Exchange. The objective is linked uidity of the share. Schibsted’s reports, stock exchange notifica- previous three years. The divi- to the goal of financing the development is followed by the tions etc. and on the company’s dend ratio of 43 percent is slight- Group’s investment needs with- leading brokerage houses in the home page. As a media company ly below Schibsted’s dividend out obtaining new capital. Nordic countries, as well as inter- with a major focus on online activi- level of recent years. The objec- A dedicated and active manage- national ones. Schibsted’s goal is ties, it is Schibsted’s aspiration to tive is to maintain a stable, high ment and investor relations to achieve analytical coverage have websites of the highest quali- dividend, which at least corre- department is in daily contact from a wide range of brokerage ty, and the Group’s presentation of sponds to the distribution of the with the investor market in order houses. Communication with information to the market has won last three years. The dividend to provide the market with rele- international investors is impor- awards on several occasions. must be competitive with other vant and timely information, thus tant to Schibsted and meetings shares on the Oslo Stock ensuring that the Schibsted share are held on a regular basis in DIVIDEND Exchange. In periods of intensive is correctly priced. Contact with Europe and the United States. The Group’s financial results for investment, it is the company’s Norwegian and international Schibsted’s website www.schibst- 2003 were very good, with an objective that the dividend from investment markets is a high pri- ed.no is an important tool in the equity ratio increasing to approxi- Schibsted ASA will remain at a

FINANCIAL CALENDAR 2004 10 LARGEST SHAREHOLDERS AS OF 31 DECEMBER 2003

Date Time Number of shares Ownership (%) Nominee 1st Quarter Accounts 2004 1 Blommenholm Industrier AS 18 083 520 26,11 Presentation 6 May 16.10 2 Fidelity Funds 6 876 227 9,93 Annual General Meeting 6 May 17.00 3 Folketrygdfondet 5 680 400 8,20 Conference Call 6 May 18.00 4 State Street Bank & Trust Co. 5 065 385 7,31 x 2nd. Quarter Accounts 2004 5 Marathon Asset Management 4 115 228 5,94 Presentation 12 August 16.10 6 JP Morgan Chase Bank 3 419 786 4,94 x Conference Call 12 August 17.30 7 Mellon Bank 3 396 495 4,90 x 3rd Quarter Accounts 2004 8 Orkla ASA 1 605 331 2,32 Presentation 4 November 16.10 9 JP Morgan Chase Bank 877 675 1,27 x Conference Call 4 November 17.30 10 Vital Forsikring ASA 853 650 1,23 Foreign ownership 42,6 % Number of shareholders 5 544 Total number of shares outstanding 69 250 000 Of which own shares 1 490 518 >> 51 THE SCHIBSTED GROUP ANNUAL REPORT 2003 SHAREHOLDER INFORMATION

250

200

150

100

50 Jul 03 Okt 03 Feb 03 Jan 04 Feb 04 Apr 03 Jun 03 Mai 03 Des 03 Sep 03 Sep Mar 03 Mar 04 Nov 03 Nov Aug 03 SHARE PRICE DEVELOPMENT 2003

Schibsted Norway OSE Benchmark Indes OSBEX Europe Stoxx Media Index

steady, high level for sharehold- the highest was NOK 128.75 on SHARE REPURCHASE ing and retaining skilled employers. The dividend will be paid on 30 October. After a general The Annual General Meeting on 7 ees. Various incentive schemes 27 May 2004 to registered share- slump in media share prices in May 1998 authorised the Board give employees the opportunity holders on 6 May 2004, the date 2002, the sector experienced an of Directors to repurchase shares to take part in the process of of the Annual General Meeting. upturn in 2003, spurred on by in Schibsted ASA. The Annual value creation within the Group. generally brighter economic General Meeting on 7 May 2003 In 2003, Schibsted’s employees SHARE PRICE DEVELOPMENT prospects. The average number decided to extend the share pur- were again given the opportunity Schibsted’s shares are listed on of shares traded per day in 2003 chase authorisation, limited to to purchase shares worth NOK the Oslo Stock Exchange. At the was approximately 147,000, 6,925,000 shares. In 2003, 7,500 at a 20% discount, in start of 2003, the share price was which is 29 percent up on 2002 Schibsted repurchased 405,000 accordance with Norwegian tax NOK 72.50. By the end of the and on a par with 2001. Foreign shares, but sold 47,482 of these laws. Around 19 percent of those year it had risen by as much as ownership at the end of 2003 to the Schibsted Employees’ who received the offer accepted 58% to NOK 114.50. In the same stood at 43 percent, against 39 Share Purchase Scheme. At the in 2003, compared with 17 per- period, the Oslo Stock Exchange percent at the start of the year. end of the year, the number of cent in 2002. The price increase Benchmark Index (OSEBX) The number of shareholders was own shares was 1,490,518. in the months before the offer increased by approx. 48 percent. 5,544 at the end of the year, was probably behind the higher The lowest price at which the compared with 5,507 the previ- EMPLOYEE STOCK PROGRAM take-up for the scheme. Schibsted share was traded was ous year. Schibsted believes that incentive NOK 61.50 on 11 February, while schemes are important in attract-

DIVIDEND PER SHARE (NOK)

Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Div. 1,15 1,30 1,50 1,75 1,75 1,75 2,00 2,00 2,00 3,00

RISK AMOUNT PER SHARE AS OF 1 JANUARY (NOK)

Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 RISK amount 5,16 4,31 4,25 4,96 6,23 1,98 1,68 4,79 1,19 3,27 >> 52 THE SCHIBSTED GROUP ANNUAL REPORT 2003 SCHIBSTED FINANS

Schibsted Finans AS is the Group’s internal bank, responsible for external borrowings and investments. In addition, Schibsted Finans is responsible for the Group’s foreign exchange and interest-rate management.

At the end of 2003, the Group’s Schibsted Finans set up a milti- when the liquidity reserve interest rate, because the dis- interest-bearing debt amounted cunency revolving loan totalling amounted to NOK 2 billion. count rate is higher. to NOK 1.6 billion, of which NOK USD 300 million in October 1997. Liquidity was considerably Correspondingly, the pension lia- 900 million was in bonds issued In October 2002 and 2003, the improved in autumn 2003, follow- bilities are negatively affected in in autumn 2003, (where NOK 600 facility was reduced by USD 60 ing the issuance of two bonds the case of a fall in interest rates. million as a four-year bond with million under the agreement, and totalling NOK 900 million. Surplus This means the Group’s interest- fixed interest rat of 4,98 percent the facility is currently USD 180 liquidity is, for the most part, rate exposure in interest-bearing and NOK 300 million as a three- million. The facility is provided by placed in the Group cashpool in liabilities and pension liabilities year bond with floating interest). a syndicate of nine Norwegian Danske Bank or invested in short- will partly offset each other in the The bonds represent a new and international banks and has a term interest rate instruments event of interest rate changes. source of financing for Schibsted, maturity of seven years. The facil- and money market funds. This therefore reduces the need which relieves the pressure on ity, which was obtained on very to hedge the interest rate on the banks. The issuance of these favourable terms, was establish- FINANCIAL RISK MANAGEMENT interest-bearing long-term debt. bonds has also opened up routes ed in order to provide the Group INTEREST-RATE EXPOSURE to the certificate market. with financial flexibility. At the When the bonds were issued in CURRENCY EXPOSURE end of the year, there were no autumn 2003, Schibsted decided Through activities in Sweden, In addition, Schibsted Finans has draw downs under facility. The to fix the interest rate of 4.98 per- Denmark, Estonia and on the two loans with the Nordic facility expires in autumn 2004 cent to a four-year bond of NOK continent the Group is exposed Investment Bank. In December and Schibsted is well underway 600 million. to change in foreign exchange 1996, Schibsted Finans entered towards replacing it with a new In the first half of 1999, Tidnings- rates. The Group uses dept into a loan agreement of USD 32 five-year facility. The refinancing tryckarna Svenska Dagbladet denominated in foreign currencies million. The loan has been con- risk is considered to be negligi- Aftonbladet AB entered into a six- and forward contracts in order to verted to NOK 206 million. In ble, and the new facility will prob- year lease egreement with fixed reduce this exposure. Schibsted November 1999 Schibsted Finans ably be in place before the end of interest rates to finance the print- previously entered all foreign entered into a 10-year loan agree- April 2004. The Schibsted ing presses totalling SEK 194 mil- exchange gains and losses relat- ment of EUR 25 million. The Group’s financial strength lion. In April 1997, Schibsted ing to foreign-currency receiv- loans will be repaid in full in 2008 improved in 2003, with the equity Finans entered into a 10-year NOK ables and liabilities in the accounts and 2009 respectively. ratio starting the year on 34.1 100 million 7% interest-rate cap, as they incurred. With effect In July 1998, when Schibsted percent and closing on 37 per- thereby partly protecting the from 2003, currency gains and acquired a majority holding in cent. Group against a possible rise in losses relating to liabilities which Svenska Dagbladet Holding AB, it interest rates. These contracts secure investments in foreign also became the majority owner LIQUIDITY headges the interes rate for units are booked as translation of Tidningstryckarna Aftonbladet The Schibsted Group has a target approx. 50 percent of the Group’s differences, and entered under Svenska Dagbladet AB and for total liquidity reserves to rep- liabilities for three to fore years. equity. The change in accounting prac- Fastighets AB Tidningsfabriken. resent a minimum of 10% of the Schibsted has substantial pension tice means a considerable reduction These two companies have next 12 months’ expected oper- liabilities which, unlike interest- in the Group's posted currency external leasing agreements and ating revenues. This target was bearing liabilities, are affected gains and losses, due to a reduction loans totalling SEK 339 million. reached on 31 December 2003, positively by an increase in the in accounting currency exposure. >> 53 THE SCHIBSTED GROUP ANNUAL REPORT 2003 SCHIBSTED EIENDOM

Schibsted Eiendom manages the Group’s properties. Up to December 2002, most of Schibsted’s buildings in Norway were owned directly or through subsidiaries of Schibsted.

On 31 December 2002, Entra At year-end, all the office proper- Eiendom purchased a share of ties were fully let, mainly to Akersgaten 32, as well as companies in the Schibsted Akersgaten 34, 36 and 51 and Group. The industrial premises Apotekergaten 6. At the same Stålfjæra 5 in Oslo have been time, Entra Eiendom took over released for sale. the company Schibsted Drift. Entra Eiendom Service AS is Entra Eiendom is sub-leasing responsible for the day-to-day Apotekergaten 8 from management of the Group’s Aftenposten and three floors of properties in Norway. This Akersgaten 55 from Schibsted includes reception services, Eiendom. In addition, Schibsted security, management and Eiendom is renting eight floors ongoing maintenance. from Entra Eiendom in Biskop Gunnerusgaten. 14. These are being used by Aftenposten.

Schibsted Eiendom AS, 31 December 2003 Total Total Addresses, owned premises m2 Tenants Addresses, owned premises m2 Tenants Akersgaten 55, Oslo 32 000 VG, Schibsted Eiendom / Apotekergt.12/Pilestredet 12,Oslo 4550 Schibsted-Forlagene Entra Eiendom *), and others. Arenavägen - Globen City, Stockholm 7 400 Aftonbladet Apotekergaten 10, Oslo 6 400 Schibsted ASA, Schibsted Biskop Gunnerusgt. 14, Oslo *) 16 174 Schibsted Eiendom/ Telecom Aftenposten Gildi str. 1 Tartu 1 100 Eesti Meedia – offices Gullhaug Torv 3, Oslo *) 7 700 Nydalen Studios, Jenagade 22, København 9 600 Metronome Studios, Riksteateret Metronome Productions Film Teknikk Norge, TV3 DK, and others Aftenposten, Sandakerveien 121, Oslo 45 000 Schibsted Trykk Samferdselsetaten Skjærvaveien 24, Strømmen 2 100 Bladkompaniet Mäster Samuelsgt 56, Stockholm 5 200 Svenske Dagbladet Stålfjæra 5, Oslo 2 200 Vacant Maakri 23, Tallinn 3 800 Eesti Meedia Tähe str. 133 Tartu 7 800 Eesti Meedia offices/printing plant Nydalsveien 17, Oslo (Lager) *) 900 Nydalen Studios Vandagatan 3, Akalla, Stockholm 26 700 Tidningstryckarna Total 132 900 *) Schibsted Eiendom AS sub-lets premises to the tenants. Of which Schibsted owns 132 900 Offices, production facilities and warehouses >> 54 THE SCHIBSTED GROUP ANNUAL REPORT 2003 ARTICLES OF ASSOCIATION (Last changed at the ordinary Annual General Meeting May 7th 2003)

§ 1 Name The company is a public limited company with the name § 8 Board of Directors Schibsted ASA. The affairs of the company shall be governed by a Board of Directors of 11 members of whom 4 shall be elected by and § 2 Registered office among the employees and 7 members by the shareholders. The company´s registered office of business is in Oslo, Norway. Shareholders owning 25% or more of the Company´s share cap- § 3 Objectives ital shall have the right to appoint one of the Board members The objective of the Company is to carry out information and elected by the shareholders. Board members shall be elected publishing activities and commercial activities related thereto. for 2 years though subject to an election arrangement to secure that the service period does not expire simultaneously for all The shareholders shall arrange the Company´s information and shareholders’ board members. publishing business activities in a manner which fully secures the editorial freedom and integrity of Aftenposten AS and § 9 Execution of documents Verdens Gang AS in accordance with the Articles of Association The Chairman of the Board and one of the other members of of these companies. the Board of Directors may jointly sign for the Company. The Board may grant power of procuration. § 4 Share capital The Company´s nominal share capital is NOK 69,250,000 pro § 10 Annual General Meeting rated on 69,250,000 shares each of NOK 1,-. All shares are fully 1. In the ordinary Annual General Meeting, the following matters paid up and registered by name. The Company´s shares shall be shall be acted upon: registered in the Norwegian Registry of Securities. 1. Adoption of the financial statements (profit and loss account § 5 Transferability and balance sheet), resolution as to the application of the The Company´s shares are transferable subject to the restric- years´ profit or coverage of deficit pursuant the balance tions set out in § 6 below. sheet adopted.

Voting rights in respect of shares that have been transferred 2. Adoption of the consolidated accounts (profit and loss may be exercised at the earliest one week after the share trans- account and balance sheet). fer has been registered in the Norwegian Registry of Securities. If the acquisition of shares requires a concession, voting rights 3. Election of an Election Committee at the end of the service in respect of the shares requires that the concession is granted, period. The Election Committee shall consist of 3 members unless the Company´s Board of Directors has already formally and one deputy. The chairman of the Election Committee is recommended that the concession is granted. elected by the General Meeting. The Election Committee is elected for 2 years. The Election Committee shall among § 6 Restrictions on ownership and voting rights others nominate shareholders’ board members and their No shareholder may own or vote at the general meeting in deputies whenever their respective service period expires or respect of more than 30% of the shares. In addition to a share- a by-election is needed. As far as possible, the Election holder´s own shares, shareholdings which are owned or Committee shall announce its nominations in the sharehold- acquired by the following are included: ers’ notice of the Annual General Meeting. The Election Committee propose remunerations to the members of the a) the shareholder´s spouse, minor children or persons with Board of Directors. The proposal shall be made in advance whom the shareholder has a common household for a period of one year counting from the Annual General Meeting. The Election Committee may pass opinions on, b) companies where the shareholder has an influence as speci- and may put forward proposals to the General Meeting, in fied in § 1-2 of the Norwegian Company´s Act of 1976 matters regarding the Board of Directors’ size, composition and working conditions, as well as matters regarding the c) companies within the same group of companies as the Company’s auditor, including proposals regarding the election shareholder, and of the Company’s auditor and the auditor’s remuneration.

d) anyone with whom the shareholder has a binding collabora- 4. Election of shareholders’ Board members and deputies tion with regard to the exercise of their rights as shareholders. whenever their respective service period expires.

§ 7 Changes in the Articles of Association 5. Other matters which by law or the Company´s Articles of Resolutions concerning changes in the Articles of Association, Association fall within the scope of the Annual General the sale of shares in subsidiaries and voting concerning changes Meeting. in the Articles of Association of subsidiaries, shall be taken by the annual general meeting and require the support of more than _ of the share capital represented at the annual general meeting. This is also required for private placements, demergers and mergers as well as the transfer of Aftenposten´s and Verdens Gang´s publishing rights. >> 55

Annual Report

Schibsted Group: Schibsted ASA: >>56 Income statement >>78 Income statement >>57 Balance sheet >>79 Balance sheet >>58 Cash flow statement >>80 Cash flow statement >>59 Notes to the consolidated >>81 Notes to the parent company financial statements financial statements >>87 Auditor’s report >> 56 SCHIBSTED ANNUAL REPORT 2003 INCOME STATEMENT – SCHIBSTED GROUP

(NOK MILLION) NOTE 2003 2002 2001

Operating revenues 5, 6 8 555 7 872 7 972

Raw materials, work in progress and finished goods 7 (1 774) (1 730) (1 755) Personnel expenses 8 (2 591) (2 423) (2 489) Depreciation and amortisation 12 (354) (375) (391) Other operating expenses 9 (3 057) (2 795) (3 065)

Operating profit (loss) before goodwill and other revenues and expenses 779 549 272

Amortisation and write-downs goodwill 12 (61) (63) (85) Other revenues and expenses 4 (17) 8 (131)

Operating profit (loss) 5 701 494 56

Income from associated companies 13 34 (67) (338)

Financial income 92 66 143 Financial expenses (146) (222) (248)

Net financial items 10 (54) (156) (105)

Profit (loss) before taxes 681 271 (387)

Taxes 11 (197) (115) (36)

Net income (loss) 484 156 (423)

Net income (loss) attributable to minority interests 15 1 8 Net income (loss) attributable to majority interests 469 155 (431)

Earnings per share (NOK) 3, 20 6.92 2.26 (6.28) Earnings per share diluted (NOK) 20 6.92 2.26 (6.28)

Oslo, 25. March 2004 The Board of Directors of Schibsted ASA

Ole Jacob Sunde Tinius Nagell-Erichsen Alexandra Bech Gjørv Lars M. Berg Styrets formann Styrets viseformann

Berit Bjerg Monica Caneman Hilde Harbo Cato A. Holmsen

Hakon Kjernsmo Gunnar Nordby Jan Reinås Kjell Aamot Konsernsjef >> 57 SCHIBSTED ANNUAL REPORT 2003 BALANCE SHEET AT 31 DECEMBER – SCHIBSTED GROUP

((NOK MILLION) NOTE 2003 2002 2001

ASSETS

Deferred tax assets 11 87 98 65 Goodwill and other intangible fixed assets 12 933 782 868 Intangible fixed assets 1 020 880 933

Tangible fixed assets 12 2 650 2 652 2 991

Investments in associated companies 13 828 822 740 Investments in other shares 14 79 81 148 Other financial fixed assets 16 259 251 221 Financial fixed assets 1 166 1 154 1 109

Fixed assets 4 836 4 686 5 033

Inventories 17 110 103 99 Receivables 17 1 113 969 1 038 Investments 18 47 57 38 Cash and bank deposits 19 810 587 608 Current assets 2 080 1 716 1 783

Total assets 6 916 6 402 6 816

EQUITY AND LIABILITIES

Share capital 69 69 69 Own shares (1) (1) (1) Share premium reserve 76 76 76 Paid in capital 144 144 144 Retained earnings 2 202 1 876 1 903 Minority interests 184 162 135 Equity 20 2 530 2 182 2 182

Deferred tax liabilities 11 58 34 33 Pension liabilities 21 447 461 462 Other provisions 22 208 183 133 Provisions 713 678 628

Interest bearing long term debt 23 1 624 1 708 2 035 Other long term liabilities 247 Long term liabilities 1 626 1 712 2 042

Current liabilities 24 2 047 1 830 1 964

Total equity and liabilities 6 916 6 402 6 816 >> 58 SCHIBSTED ANNUAL REPORT 2003

CASH FLOW STATEMENT – SCHIBSTED GROUP

((NOK MILLION) NOTE 2003 2002 2001

CASH FLOW FROM OPERATING ACTIVITIES Profit (loss) before taxes 681 271 (387) Income from associated companies (34) 67 338 Dividends received from associated companies 68 43 56 Taxes paid (179) (102) (229) Sales losses / (gains) fixed assets 2 (125) (24) Depreciation, amortisation and write-downs intangible and tangible fixed assets 418 459 529 Write-downs financial fixed assets 11 66 57 Change in working capital (13) (90) (42)

Cash flow from operating activities 954 589 298

CASH FLOW FROM INVESTING ACTIVITIES Investments in intangible and tangible fixed assets (263) (248) (387) Payments for acquisition of subsidiaries, net of cash acquired 26 (180) (11) (68) Proceeds from sale of intangible and tangible fixed assets 6 400 15 Proceeds from sale of subsidiaries, net of cash sold (2) 3 - Investments in / sale of equity investments (18) (122) 72 Other investments / sales 47 (72) 33

Cash flow from investing activities (410) (50) (335)

Cash flow before financing 544 539 (37)

CASH FLOW FROM FINANCING ACTIVITIES New long term interest bearing debt 935 - 356 Repayment of long term interest bearing debt (1 101) (400) (41) Minority’s contribution and withdrawal of capital 2 (7) 2 Repurchase / sale of own shares (22) (16) (71) Dividends paid (135) (137) (138)

Cash flow from financing activities (321) (560) 108

Cash flow for the year 223 (21) 71

Cash and cash equivalents at 1 January 587 608 537

Cash and cash equivalents at 31 December 810 587 608 >> 59 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – KONSERN

NOTE 1. Description of accounting principles

CONSOLIDATION The consolidated financial statements are prepared in accordance with laws and regulations and generally accepted accounting principles in Norway and include Schibsted ASA and companies controlled by Schibsted ASA, directly or indirectly, either through ownership or by agreement (subsidiaries). The consolidated financial statements are prepared on the basis that the Group is a single entity and all material transactions between consolidated companies are eliminated. Companies included in the consolidated financial statements are presented in note 27. Subsidiaries are consolidated 100 % in the consolidated financial statements from the date control is transferred to Schibsted and until Schibsted ceases to have control. In the case of subsidiaries that are not wholly-owned, minority interests in net income and equity are presented as separate lines in the income statement and balance sheet. Business combinations are treated in accordance with the purchase method except in cases where there is a real pooling of interests. Under the purchase method, the Group’s cost of acquisition is allocated to identifiable assets and liabilities based on estimated fair value at the time of acquisition. Any excess of the cost of acquisition over the fair value of identifiable assets and liabilities is recorded as goodwill. Goodwill is amortised on a straight-line basis over expected useful life. Foreign subsidiaries that are included in the consolidated financial statements are all considered as independent units. In translating the financial statements from the respective foreign currencies to Norwegian kroner (NOK), assets and liabilities are translated using the closing rate at the date of the balance sheet while income and expenses are translated using the average exchange rate for the reporting period. Exchange differences are recognised in equity until disposal of the investment. Joint ventures are defined as operations in which Schibsted ASA participate directly or through subsidiaries, and where the participants through agreements have joint control over the operation. Joint ventures are accounted for using pro rata consolidation where the Group’s share of income, expenses, assets and liabilities are recorded line by line in the consolidated financial statements. Associated companies are defined as companies where Schibsted ASA, directly or through subsidiaries does not have a majority interest but exercises significant management influence and has a significant ownership interest, normally 20-50 %. Associated companies are accounted for using the equity method of accounting under which Schibsted recognises its share of the company’s net income and gains or losses on sale on a separate line in the income statement. In the balance sheet the investment is recorded at cost adjusted for share of income and dividends received.

ACCRUAL PRINCIPLES, CLASSIFICATION AND VALUATION Revenue recognition Advertising revenues are recognised when the ads are placed at full price less discounts. Subscription revenues are prepaid and recognised in income when the newspapers are delivered. Casual sales are recognised in income based on copies sold, i.e. copies delivered less returns. Barter agreements are recognised in income at market value at the time of the transaction. Market value is measured based on the value of the service delivered or received, depending on which service that can be most reliably measured. Income related to TV/film-productions performed over more than one accounting period (construction contracts) is recognised using the percentage-of-completion method of accounting. Under this method, income and profit are recognised as work under the contract progresses.

Classification Assets and liabilities connected to the business cycle are classified as current assets or liabilities. Receivables and liabilities not related to the business cycle are classified as current if they are of a short term nature, normally due within one year. Shares and other investments not intended for continued use or ownership are classified as current assets. Other assets are classified as fixed assets and other liabilities as long term.

Shares and bonds Shares and bonds classified as current assets are valued at the lower of cost or market value. Shares and bonds classified as fixed assets are valued at cost or at market value if market value is lower than cost and the decline in value is expected not to be temporary.

Tangible and intangible fixed assets Tangible and intangible fixed assets are stated at cost less accumulated depreciation, amortisation and write-downs. Costs related to the development of software are capitalised as intangible assets when the asset is expected to have sustainable value. Costs include direct and indirect costs attributable to the development of the asset. The cost of assets constructed by the Group includes interest cost on expenditures during the construction period. Fixed assets with limited useful life are depreciated on a straight line basis over the estimated useful life of the assets. Normal repairs and maintenance are expensed as incurred. Major improvements are capitalised and depreciated over the remaining useful life of the asset. Environmental expenditures are expensed as they are incurred, unless the measures increase capacity, productivity, or the remaining useful life of the related facility. Tangible and intangible fixed assets are written down if the carrying value exceeds recoverable amount. Recoverable amount is the higher of net sales value and net present value of future cash flows expected to be generated. The write-down is reversed if the basis for the write- down is no longer present. >> 60 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Leasing Leasing agreements are classified as financial or operational based on the actual content of the agreement. Agreements transferring substanti- ally all the financial rights and obligations related to the leased object to Schibsted, are classified as financial. Assets held under financial lease agreements are capitalised and depreciated according to plan. The present values of lease payments are included in long term interest bearing debt, and the debt is reduced by the amount of lease payments made less the effective interest expense. Other lease agreements are classified as operational, and the annual rental fee is charged to expense as a leasing expense.

Foreign currency Receivables and liabilities in foreign currencies are translated at the closing rate at the date of the balance sheet. Exchange gains and losses arising on liabilities and other financial instruments hedging a net investment in a foreign operation is recognised in equity until disposal of the investment. Other foreign exchange gains or losses are included in other financial income or expenses.

Inventories Inventories are valued at the lower of cost or net realisable value.

Accounts receivable Accounts receivable are valued at realisable value. Provisions are made for bad debts.

Own shares Cost of acquisition and proceeds from sales of own shares are offset against equity.

Pension cost Pension liabilities related to benefit plans are valued at the net present value of future pension benefits earned at the balance sheet date and calculated on the basis of assumptions for the discount rate, expected future wage growth and pension adjustments. Pension plan assets are valued at market value. Net pension liabilities on under-funded contracts are recorded as provisions, while the net assets of over-funded contracts are recorded in financial fixed assets. Net periodic pension cost, which is gross pension cost less estimated return on plan assets adjusted for amortisation of unrecognised gains and losses, is included in personnel expenses. Changes in pension liabilities due to amendments in the terms of pension plans are included in the measurement of net periodic pension cost over the average remaining pension-earning period. Changes in pension liabilities due to changes in and deviations from the calculation assumptions are included in the measurement of net periodic pension cost over the average remaining pension-earning period only if the accumulated effect exceeds 10 % of the larger of plan assets or projected benefit obligations. In the case of pension plans that are defined for accounting purposes as contribution plans, pension costs are expensed in line with the payment of pension premiums.

Share based payment Any intrinsic value measured at grant date for options granted to employees are included in personnel expenses over the vesting period. Related social security costs are charged to expense over the vesting period.

Income taxes Income tax expense is calculated from profit (loss) before taxes and includes current taxes and change in deferred taxes. Deferred tax assets and liabilities are calculated in accordance with the liability method. Deferred income tax is provided for all temporary differences between the carrying amount in the balance sheet and the tax base of assets and liabilities, and for unused tax losses. Deferred taxes are not provided for retained earnings of subsidiaries, joint ventures or associated companies. Deferred tax assets are recognised only when it is expected that the benefit can be realised through sufficient taxable profit from expected future profits. Deferred taxes are not discounted.

Restructuring costs Expenses related to restructuring and reorganisation of operations are recognised in accordance with the matching principle. Expenses not related to revenues in later periods are expensed as incurred. Expenses related to restructuring and reorganisation are considered to be incurred when the implementation plan is adopted and communicated.

Other revenues and expenses Operating revenue and expense items of a non-recurring nature and of material importance to business areas are separated from other ordinary operating revenues and expenses and reported in a separate line in the income statement.

Contingent liabilities Contingent liabilities are recognised if it is more probable than not that the liability will become effective. The best estimate of amounts to be paid is included in other provisions in the balance sheet. Other obligations, for which no liability is recognised, are disclosed in notes to the financial statements.

Cash flows statement The cash flows statement is prepared under the indirect method. Cash and cash equivalents include cash, bank deposits and other monetary instruments with a maturity of less than three months at the date of purchase. >> 61 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Note 2. Implementation of International Financial Reporting Standards (IFRS)

The EU has resolved that from 2005 all listed companies in the EU have to prepare their consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). Under the EEA Agreement, Norwegian listed companies are subject to the same requirements and Schibsted will prepare its financial statements in accordance with IFRS as from 2005. The consolidated financial statements for 2004 will be prepared in accordance with laws and regulations and generally accepted accounting principles in Norway. Restated comparable figures for 2004 according to IFRS will be presented in the 2005 consolidated financial statements. Considerable changes have, and are still taking place, in relation to the accounting standards that are to be applied in the financial statements for 2005. This includes improvements in standards, convergence with US GAAP and preparation of standards in areas previously not regulated. When preparing the opening balance sheet in accordance with IFRS as per 01.01.2004, there are several options regarding first-time adoption of IFRS, among other related to the extent to which previous business combinations are restated and the possibility of measuring fixed assets at other values than depreciated cost. Schibsted will until the transition to IFRS continue to identify effects on the income statement and balance sheet, make the required elections where IFRS grants exemptions from the basic requirement of full retrospective application, decide upon new accounting principles within IFRS and make the required changes to reporting systems and routines in order to meet the reporting requirements. Quantitative information about effects on the income statement and the balance sheet will not be communicated until it is possible to calculate such effects with sufficient degree of certainty. Based on preliminary analyses, the following areas have been identified as areas where the Group’s financial statements may be effected by the implementation of IFRS:

• Goodwill Under IFRS, goodwill is not amortised. As under existing Norwegian practise however, goodwill will have to be written-down if the carrying value exceeds the recoverable amount. • Share based payment Fair value, measured at grant date for options granted to employees will under IFRS have to be charged to expense over the vesting period. Generally accepted accounting principles in Norway have accepted that only the intrinsic value is charged to expense. • Business combinations The requirements under IFRS to identify and separately recognise intangible assets acquired in business combinations may be stricter than current practise in Norway. The effect of this may be that a larger part of future acquisition cost will be allocated to identifiable intangible assets, and that goodwill will be reduced correspondingly. In connection with first-time implementation of IFRS there are limits the requirements to restate historical business combinations. • Pension cost Accumulated actuarial gains or losses may be credited or charged to equity as per 01.01.2004. It is expected that IFRS will require more fre- quent changes in assumptions used for calculation of pension liabilities than what has been practise in Norway. • Financial instruments / hedge accounting IFRS has stricter conditions to be met for hedging relationships to qualify for hedge accounting. The requirements related to documentation of hedging relationships and hedge effectiveness increases.

There may also be other differences between IFRS and the accounting principles applied by Schibsted. The extent of deviations may be affected by which accounting principles Schibsted decides to apply within IFRS and by the elections Schibsted makes in areas where IFRS grants exemptions from the basic requirement of full retrospective application.

Note 3. Significant transactions and other events

Hedge accounting Schibsted has changed its accounting practice regarding foreign currency in 2003. With effect from 2003, all foreign exchange gains (losses) related to liabilities and other financial instruments used for hedging net investments in foreign units are recognised directly in equity until disposal of the investment. Previously, all such foreign gains and losses exchange were reported in net profit on a current basis. In order to facilitate comparison, figures for previous periods have been restated, see table below:

(NOK MILLION) 2002 2001 Net income (loss) reported in previous periods 188 (423) Change in net financial items (45) 0 Change in taxes 13 0 Net income (loss) 156 (423) Earnings per share (NOK) reported in previous periods 2.74 (6.28) Change in earnings per share (0.48) (0.00) Earnings per share (NOK) 2.26 (6.28)

The change does not affect Group equity. >> 62 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Investments in subsidiaries During 2003, NOK 191 million have been invested in shares in subsidiaries. The acquisitions are treated in accordance with the purchase method, and excess values of NOK 173 million, mainly goodwill, is recognised in the consolidated balance sheet in 2003.

In the 4th quarter 2003, Schibsted, via FinnMer AB, acquired all the shares in Blocket AB, a Swedish company, for SEK 183 million. Blocket operates a classified advertisement service called www.blocket.se and is Sweden’s leading company in the field of buying and selling private vehicles and miscellaneous articles on the Internet.

Through the subsidiaries FINN and Aftonbladet, Schibsted acquired in 2002 60 % of the shares in the Swedish company Byt Bil Nordic AB. An additional payment for the shares incurred in 2003 as a function of net profit in 2002/2003. The additional payment was accrued for in 2002 and paid during autumn 2003. In 2002 put-/call option agreements were entered into regarding the remaining 40 % of the shares. The exercise price is linked to fair value of the company at the time of execution. The option may be executed in a period of 2-4 years after signing the contract. In December 2003 4.8 % of the shares were sold to the management.

20 Minutes Per 3 March 2004, Schibsted entered into a contract increasing its ownership share in 20 Min Holding AG. Schibsted is paying between EUR 50 million and EUR 55 million for increasing the ownership share, from 41 % to approximately 98 %. 20 Min Holding AG publishes through subsidiaries in Switzerland and Spain free newspapers. Following these transactions, 20 Min Holding AG will own 100 % of the Spanish operations, 50.5 % of the Swiss operations, and 16 % of the French operations. Schibsted currently owns 34 % of the French operations directly, giving Schibsted a total control of 50 % of the French operations. From takeover, this purchase will lead to a full consolidation of 20 Min Holding AG, and the operations in France will be pro rata consolidated (50 %).

In 4th quarter of 2003, 20 Min Holding AG sold 49.5 % of the shares in the Swiss operation to Express Zeitung AG based on an agreement entered into in the 1st quarter of 2003. Remaining shares are agreed sold to Express Zeitung AG within 1st quarter of 2007. The price to be paid for the remaining 50.5 % of the shares is dependent upon results in 2005 and 2006.

In 2001, 20 Min Holding AG acquired 64.91 % of the shares in the Spanish media company Multiprensa y Mas. Based on an existing option agreement 20 Min Holding AG will, through an investment of EUR 7.5 million purchase the remaining shares in the company during first half of 2004.

Note 4. Other revenues and expenses

Operating revenue and expense items of a non-recurring nature and of material importance to business areas are separated from ordinary operating revenues and expenses and reported in a separate line in the income statement. Other revenues and expenses consist of the following items:

(NOK MILLION) 2003 2002 2001 Refund of pension funds Sweden --16 Restructuring costs Norway (11) (73) (78) Restructuring costs Sweden (6) (14) (69) Gains on sale of fixed assets -87- Gains on sale of subsidiaries etc. -8 - Total (17) 8 (131)

2003 restructuring costs are related to the continued Profitability Program implemented in 2002. Additional provisions may be necessary in 2004 related to measures in Aftenposten, which will be communicated in the 1st quarter 2004 accounts.

Note 5. Business area information

Schibsted’s operations are primary reported in four business areas. The division is in accordance with the Group’s organisation and internal management reporting. The operations of the business areas are mainly carried out through separate companies within the business areas. Allocation of revenues, expenses, assets and liabilities to business areas are based on the financial statements for these companies. All transactions between business areas are made at normal terms. >> 63 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Financial statement items, allocated to business areas, are shown below:

OPERATING REVENUES (NOK MILLION) 2003 2002 2001 Newspapers Subscription revenues 865 803 813 Casual sales revenues 2 677 2 505 2 507 Advertising revenues 2 456 2 308 2 449 Other revenues 513 466 494

TV / Film Other revenues 1 258 1 131 1 107

Publishing Subscription revenues 28 29 32 Casual sales revenues 14 13 12 Advertising revenues 30 28 26 Other revenues 277 269 250

Estonia Subscription revenues 64 56 56 Casual sales revenues 23 21 22 Advertising revenues 113 91 83 Other revenues 88 74 59

Other operations / Eliminations Advertising revenues (3) (10) - Other revenues 152 88 62

Schibsted Group Subscription revenues 957 888 901 Casual sales revenues 2 714 2 539 2 541 Advertising revenues 2 596 2 417 2 558 Other revenues 2 288 2 028 1 972 Total operating revenues 8 555 7 872 7 972

OPERATING EXPENSES* (NOK MILLION) 2003 2002 2001 Newspapers (5 641) (5 350) (5 744) TV / Film (1 138) (1 054) (1 006) Publishing (310) (301) (297) Estonia (249) (215) (209) Other operations / eliminations (84) (28) (53) Schibsted Group (7 422) (6 948) (7 309) * Include raw materials, work in progress and finished goods, personnel expenses and other operating expenses.

DEPRECIATION, AMORTISATION AND WRITE-DOWNS * (NOK MILLION) 2003 2002 2001 Newspapers (266) (280) (301) TV / Film (70) (67) (79) Publishing (13) (13) (14) Estonia (24) (29) (36) Other operations / eliminations (42) (49) (46) Schibsted Group (415) (438) (476) * Include depreciation and amortisation and amortisation and write-downs goodwill.

OTHER REVENUES AND EXPENSES (NOK MILLION) 2003 2002 2001 Newspapers(17) (17) (73) (127) TV / Film -- 4 Publishing - - (4) Other operations / eliminations - 81 (4) Schibsted Group (17) 8 (131) >> 64 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

OPERATING PROFIT (LOSS) (EBIT) (NOK MILLION) 2003 2002 2001 Newspapers 587 379 91 TV / Film 50 10 26 Publishing 26 25 5 Estonia 15 (2) (25) Other operations / eliminations 23 82 (41) Schibsted Group 701 494 56

ASSETS (NOK MILLION) 2003 2002 2001 Newspapers 6 513 5 986 6 060 TV / Film 1 046 899 1 232 Publishing 378 365 371 Estonia 322 261 274 Other operations / eliminations (1 343) (1 109) (1 121) Schibsted Group 6 916 6 402 6 816

LIABILITIES (NOK MILLION) 2003 2002 2001 Newspapers 4 643 4 453 4 539 TV / Film 602 562 919 Publishing 321 331 352 Estonia 482 436 441 Other operations / eliminations (1 662) (1 562) (1 617) Schibsted Group 4 386 4 220 4 634

INVESTMENTS IN INTANGIBLE AND TANGIBLE FIXED ASSETS (NOK MILLION) 2003 2002 2001 Newspapers 145 184 252 TV / Film 59 46 88 Publishing 24 3 Estonia 50 15 10 Other operations / eliminations 7 48 34 Schibsted Group 263 297 387

Note 6. Geographical information

Operating revenues, assets and investments divided geographically, based on the location of the operations are shown below. Operating revenues divided by location of the customers do not deviate materially from operating revenues divided based on Group companies’ locations.

OPERATING REVENUES (NOK MILLION) 2003 2002 2001 Norway 4 668 4 440 4 430 Other Scandinavian countries 3 487 3 063 3 215 Estonia 289 242 220 Other areas 115 127 107 Eliminations (4) - - Total 8 555 7 872 7 972

Included in operating revenues is a press subsidy (Svenska Dagbladet) amounting to NOK 57 million in 2003, NOK 54 million in 2002 and NOK 57 million in 2001. Increased revenues in 2003 are partly explained by a change in foreign exchange rates, mainly a stronger SEK, amounting to NOK 200 million. >> 65 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

ASSETS (NOK MILLION) 2003 2002 2001 Norway 4 388 4 313 4 887 Other Scandinavian countries 2 465 1 928 1 225 Estonia 323 261 274 Other areas 90 113 38 Eliminations (350) (213) (608) Total 6 916 6 402 6 816

INVESTMENTS IN INTANGIBLE AND TANGIBLE FIXED ASSETS (NOK MILLION) 2003 2002 2001 Norway 108 165 225 Other Scandinavian countries 104 116 151 Estonia 50 15 10 Other areas 111 Total 263 297 387

Note 7. Raw materials, work in progress and finished goods

Raw materials, work in progress and finished goods consist of the following items:

(NOK MILLION) 2003 2002 2001 Raw materials and purchased goods 919 961 1 005 TV / Film production expenses 855 769 750 Total 1 774 1 730 1 755

Increased raw materials, work in progress and finished goods in 2003 are partly explained by a change in foreign exchange rates, mainly a stronger SEK, amounting to NOK 30 million.

Note 8. Personnel expenses and average number of employees

Personnel expenses consist of the following items:

(NOK MILLION) 2003 2002 2001 Salaries and wages 1 930 1 824 1 879 Social security costs 403 366 388 Net pension cost (note 21) 152 122 113 Other personnel expenses 106 111 109 Total 2 591 2 423 2 489

Average number of employees 4 725 4 830 4 758

Increased personnel expenses in 2003 are partly explained by a change in foreign exchange rates, mainly a stronger SEK, amounting to NOK 50 million.

The Board of Directors and Schibsted Group Management Schibsted ASA has paid NOK 1,998,000 in remuneration to the Board of Directors. Members of the Board have also received a total amount of NOK 240,000 in director‚s fees from subsidiaries. Schibsted ASA has paid NOK 2,942,000 in salaries, including cash bonus and director‚s fees from subsidiaries to the Chief Executive Officer. He has also received NOK 188,000 in other taxable remuneration and NOK 875,000 in pension plan payments. The other members of Group Management have received NOK 6,261,000 in salaries, including cash bonus and director‚s fees from subsidiaries. They have also received NOK 450,000 in other taxable remuneration and NOK 1,555,000 in pension plan payments. Under certain conditions the company is obliged to pay termination compensation to the CEO and the Executive Vice Presidents amounting to 24 and 18 months‚ salary, respectively. The CEO may choose to leave his position at the age of 65 and receive a pension amounting to 90 % of his salary in the period 65-67 years. The Chairman of the Board has no remuneration if he chooses to leave his position. Remuneration to the Deputy Chairman of the Board is deducted from his pension benefits earned in his previous position in the Group. Schibsted ASA‚s Group Management has an incentive programme that is divided in two, a bonus programme related to achievement of financial goals and an option programme. Annual cash bonus for the Group Management is maximum four months‚ salaries. Schibsted ASA has in 2003 paid NOK 375,000 in cash bonus to the Chief Executive Officer and NOK 737,000 to the Executive Vice Presidents. The Group Management option programme was established in 2002. Each year‚s options are earned over three years and must be executed within a year after completed earning period. The strike price for options granted in 2001, 2002 and 2003 was NOK 100, NOK 93 and NOK 98 respectively. Options granted in 2000 were not executed in 2003. The option programme comprises the following persons: CEO Kjell Aamot, 30,000 shares p.a., Executive Vice Presidents Trond Berger, Sverre Munck, Jan Erik Knarbakk and Birger Magnus, 15,000 shares p.a. >> 66 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

The Auditors The Group auditors 2003 fee consists of: (NOK 1 000, excl. VAT) Statutory Other Tax Other audit confirmations assistance services Total Schibsted ASA Ernst & Young AS 550 47 144 - 741 Schibsted Group Ernst & Young AS 3 339 157 555 272 4 323 Other auditors 3 938 - 29 2 036 6 003 Total 7 277 157 584 2 308 10 326

Note 9. Other operating expenses

Other operating expenses consist of the following items:

(NOK MILLION) 2003 2002 2001 Distribution 717 685 751 Commissions 694 600 587 Rent, maintenance, office expenses and energy 348 369 407 PR, advertising and campaigns 330 264 293 Printing contracts 234 226 236 Editorial material 192 171 185 Professional fees 145 144 193 Travelling expenses 105 118 143 Write-downs intangible and tangible fixed assets 3 - 19 Other operating expenses 289 218 251 Total 3 057 2 795 3 065

Increased other operating expenses in 2003 are partly explained by a change in foreign exchange rates, mainly a stronger SEK, amounting to NOK 100 million.

Note 10. Net financial items

Financial income and expenses consist of the following items:

(NOK MILLION) 2003 2002 2001 Interest income 34 33 55 Interest expense (71) (115) (140) Net foreign exchange gains (losses) 1 (2) 12 Net other financial expenses (18) (72) (32) Net financial items (54) (156) (105)

Net other financial expenses mainly include income from financial investments through gains and losses on sale, change in unrealised losses and dividends received.

Note 11. Taxes

Tax expenses consist of the following items:

(NOK MILLION) 2003 2002 2001 Current income taxes 139 157 98 Deferred income taxes 39 (29) (62) Effect hedge accounting foreign currency 19 (13) - Taxes 197 115 36 >> 67 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Net deferred tax liabilities (assets) consist of the following items:

(NOK MILLION) 2003 2002 2001 Taxable (deductible) temporary differences: Current assets and liabilities (123) (135) (125) Prepaid pension cost 6911 Accrued pension liabilities (427) (441) (335) Other long term differences 472 377 327 Total temporary differences (72) (190) (122)

Unused tax losses (601) (604) (574) Total differences (673) (794) (696)

Calculated net deferred tax liabilities (assets) (188) (221) (195) Unrecognised deferred tax assets 159 157 163 Net deferred tax liabilities (assets) (29) (64) (32)

Of which deferred tax liabilities 58 34 33 Of which deferred tax assets (87) (98) (65)

Change in net deferred tax liabilities (assets) 35 (32) (58)

Approximately 95 % of unused tax losses are related to operations located outside Norway. The main part of the losses expires after 2008.

The change in net deferred tax liability (asset) is allocated between the following items:

(NOK MILLION) 2003 2002 2001 Ordinary income tax expense 39 (29) (62) Effect of acquisitions and sales of subsidiaries etc. (4) (3) 4 Change in net deferred tax liabilities (assets) 35 (32) (58)

Below is set out the differences between profit (loss) before taxes and the basis for income taxes:

(NOK MILLION) 2003 2002 2001 Profit (loss) before taxes 681 271 (387) Amortisation and write-downs goodwill without tax effect 52 54 76 Change in basis for unrecognised deferred tax assets 7 69 532 Difference income and tax basis from associated companies (80) 3 (157) Other permanent differences 44 15 63 Basis for income taxes 704 412 127

Taxes 197 115 36

The basis for income taxes may deviate materially from profit (loss) before taxes. The reasons for such deviations are: • Amortisation and write-downs of goodwill that only to a limited extent affects the tax basis. • Deferred tax assets are recognised only if it is expected that the benefit can be realised through sufficient taxable income from expected future profits. The basis for income taxes is increased by new losses and temporary differences for which no deferred tax assets are recognised. The basis for income taxes is reduced by the effect of previously unrecognised tax assets being utilised. Unrecognised deferred tax assets as per December 31, 2003 are mainly related to Svenska Dagbladet and other subsidiaries in Sweden. • Deferred taxes are not provided for retained earnings of Norwegian associated companies. For foreign associated companies, deferred tax assets are recognised provided that it is expected that the benefit can be realised through sufficient taxable income from future profits or through sale of the investment. • Other permanent differences such as non-deductible expenses and non-taxable revenues. >> 68 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Note 12. Intangible and tangible fixed assets

OTHER CONSTRUC- EQUIPMENT, INTANGIBLE BUILDINGS TION IN FURNITURE, (NOK MILLION) GOODWILL ASSETS AND LAND PROGRESS MACHINERY VEHICLES TOTAL Cost at 31 December 2002 1 042 350 1 612 72 1 337 1 310 5 723 Reclassifications - 8 2 (42) 42 (10) - Additions 168 42 7 61 24 135 437 Disposals at cost - (4) (67) - (32) (489) (592) Translation differences 2003 26 54 61 6 93 68 308 Cost at 31 December 2003 1 236 450 1 615 97 1 464 1 014 5 876

Acc. depreciation, amortisation and write-downs at 31 December 2003 (457) (296) (346) - (505) (689) (2 293) Book value at 31 December 2003 779 154 1 269 97 959 325 3 583

Depreciation and amortisation 2003 (61) (42) (64) - (104) (144) (415) Write-downs 2003 (note 9) - (3) ----(3)

Depreciation method Straight line Straight line Straight line Straight line Straight line Estimated useful life 10-20 years 3–10 years 25–50 years 5–20years 3–10 years

Other intangible assets include film rights. Film rights with a limited license period and self-produced films are amortised over a three-year period according to a 60-20-20 distribution. Film rights with an unlimited license period are amortised with a proportional share of revenues. Tangible fixed assets include assets held under financial lease agreements. The related tangible fixed assets have a cost of NOK 326 million and a book value of NOK 199 million. Depreciation in 2003 amounts to NOK 25 million. The Schibsted Group has operating lease agreements mainly related to office buildings and cinemas. Annual rent related to agreements in force is approximately NOK 150 million, of which approximately NOK 60 million relates to rental agreements in Norway, NOK 83 million rental agreements in other Scandinavian countries and NOK 7 million rental agreements in Estonia.

The table below specifies goodwill by company: ACCUMULATED AMORTISATION BUSINESS AMORTISATION AND WRITE-BOOK AMORTISATION (NOK MILLION) AREA ACQUIRED PERIOD COSTO.A DOWNS VALUE 2003 Aftonbladet Hierta AB Newspaper 1995 20 year 338 (141) 197 (18) Blocket AB Newspaper 2003 20 year 162 (1) 161 (1) AS Eesti Meedia Estonia 1998 20 year 139 (38) 101 (7) Sandrew Metronome AB TV / Film 1998 20 year 112 (34) 78 (6) Dine Penger AS Publishing 1997 20 year 98 (38) 60 (5) Bladkompaniet AS Publishing 1999 20 year 75 (19) 56 (4) Other 10–20 years 312 (186) 126 (20) Total 1 236 (457) 779 (61)

Goodwill is amortised over the useful life. Useful life is estimated based on the financial assessments made in connection with the valuation of each company acquired. These assessments are normally based upon the assumption that goodwill related to the acquired company has an expected useful life exceeding 5 years. Schibsted generally uses an estimated useful life of 20 years for companies that are considered to have strong market positions or which are of significant strategic importance. >> 69 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Note 13. Investments in associated companies

2003 changes in book value related to investments in associated companies were as follows:

BOOK - INCOME BOOK OWNERSHIP VALUE FROM VALUE 31 DECEMBER 31 DECEMBER NET ASSOCIATED DIVIDEND 31 DECEMBER (NOK MILLION) LOCATION 2003 COST 2002 ADDITIONS COMPANIES RECEIVED OTHER 2002 20 Minutes France SAS Paris 41 % 101 62 (46) 7 23 20 Minutes Holding AG Zürich 41 % 120 (174) (28) (202) Adresseavisen ASA Trondheim 32 % 105 115 15 (10) 120 AS Harstad Tidende Harstad 49 % 46 45 3 5 (1) 52 Bergens Tidende AS Bergen 24 % 79 109 6 (5) 110 Fædrelandsvennen AS Kristiansand 25 % 15 44 7 (8) 43 Pressens Morgontjänst KB Stockholm 50 % 84 67 5 72 Scanpix Danmark A/S Copenhagen 49 % 28 3 3 Stavanger Aftenblad ASA Stavanger 32 % 59 105 11 (24) 92 TV 2 AS Bergen 33 % 168 231 61 (20) 272 Other 42 41 6 3 (9) 41 Total 847 648 9 34 (68) 3 626 Reclassified to other provisions (note 22) 174 28 202 Book value investments in associated companies 822 828

Excess values included in book value of investments in associated companies at 31 December, 2003 amounts to NOK 147 million and is mainly related to goodwill being amortised over the estimated useful life. Depreciation and amortisation in 2003 amounted to NOK 13 million.

Note 14. Investments in other shares

Investments in other shares consist of the following items: OWNERSHIP BOOK VALUE 31 DECEMBER 31 DECEMBER (NOK MILLION) 2003 2003 ABC Startsiden AS 16,6 % 7 Asker og Bærums Budstikke ASA 10,2 % 21 Basefarm AS 15,0 % 4 Crossroads Loyalty Solutions AB 16,7 % 1 Datek Wireless AS 16,3 % 2 Digital Ventures II Ltd 3,0 % 6 Human Content AS 19,3 % 4 iVisjon AS 16,7 % 5 Telenor Venture II ASA 4,2 % 11 TV 2 Interaktiv AS 12,0 % 11 Other shares 7 Total 79

Market value related to Shares in Asker og Bærums Budstikke ASA NOK 48 million. There are no quoted market values related to other shares held. >> 70 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Note 15. Joint Ventures

Joint ventures are accounted for using pro rata consolidation. The Group’s share of revenues, expenses, assets and liabilities are recorded line by line in the consolidated financial statements.

Significant operations accounted for as joint ventures are specified below:

OWNERSHIP/ SHARE OF CONTROL 31 DECEMBER 2003 LOCATION BUSINESS AREA Sandrew Metronome AB 50,0 % Stockholm TV / Film AS Ajakirjade Kirjastus (Estonian Magazine Group) 50,0 % Tallinn Estonia AS SL Õhtuleht 50,0 % Tallinn Estonia Finn Tech AS 50,0 % Oslo Newspaper

Key figures for joint ventures included in the consolidated financial statements are presented below:

SHARE OF SHARE OF SHARE OF SHARE OF OPERATING OPERATING OPERATING PROFIT BEFORE (NOK MILLION) REVENUES EXPENSES PROFIT TAXES Sandrew Metronome AB 558 540 18 14 AS Ajakirjade Kirjastus 40 34 6 6 AS SL Õhtuleht 28 24 4 5 Finn Tech AS 12 13 (1) (1) Other 13 12 1 2 Total 651 623 28 26

SHARE OF LONG TERM SHARE OF SHARE OF SHARE OF LIABILITIES AND CURRENT (NOK MILLION) FIXED ASSETS CURRENT ASSETS PROVISIONS LIABILITIES Sandrew Metronome AB 198 142 37 135 AS Ajakirjade Kirjastus 1 17 - 8 AS SL Õhtuleht 112- 6 Finn Tech AS 710- 3 Other -6 -4 Total 207 187 37 156

Note 16. Other financial fixed assets

Other financial fixed assets consist of the following items:

(NOK MILLION) 2003 2002 2001 Prepaid pension cost (note 21) 6911 Receivables from joint ventures and associated companies 230 218 173 Other long term receivables 23 24 37 Total 259 251 221

Receivables from joint ventures and associated companies consist mainly of loans given to 20 Min Holding AG. >> 71 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Note 17. Inventories and receivables

Inventories per 31 December, 2003 amounting to NOK 110 million in consist mainly of newsprint, books and videotapes.

Receivables consist of the following items:

(NOK MILLION) 2003 2002 2001 Accounts receivable 799 725 743 Prepayments to suppliers 96 39 29 Other receivables 218 205 266 Total 1 113 969 1 038

Other receivables include among others accrued revenues, receivables from public authorities and prepaid expenses.

Note 18. Investments

Investments consist of the following items:

(NOK MILLION) 2003 2002 2001 Shares and equity funds --7 Interest bearing investments 47 57 31 Total 47 57 38

Note 19. Cash and bank deposits

Schibsted Group has a cash pool agreement with Danske Bank in which all the Norwegian subsidiaries and most of the Swedish subsidiaries are included. The cash pool system is created to optimise cash management within the Group. The Group has a bank overdraft limit of NOK 300 million. As at 31 December, 2003, this overdraft limit is not used.

Note 20. Equity

Changes in equity were as follows in 2003:

SHARE PREMIUM RETAINED MINORITY TOTAL (NOK MILLION) SHARE CAPITAL OWN SHARES RESERVE EARNINGS INTERESTS EQUITY Equity at 31 December 2002 69 (1) 76 1 876 162 2 182 Net income (loss) 469 15 484 Dividends from Schibsted ASA (203) (203) Repurchase / sale of own shares (0) (22) (22) Dividends from subsidiaries (18) (18) Share issue and changed share of interrest interest in subsidiaries 6 14 20 Translation differences and other 76 11 87 Equity at 31 December 2003 69 (1) 76 2 202 184 2 530

“Share issue and changed share of interest in subsidiaries” is related to a share issue in Scanpix Scandinavia AB and sale of shares in the subsidiaries FinnMer AB, Distribution Innovation AS and Byt Bil Nordic AB. The Annual Shareholders' meeting has authorised the Board of Directors to repurchase shares in Schibsted ASA limited to 6,925,000 shares. The Annual Shareholders’ Meeting on 7 May, 2003 approved an extension of the share repurchase authorisation for a period of 18 months. The Board of Directors’ will place a motion that this authorisation is extended until The Annual Shareholders meeting in 2005 on The Annual Shareholders meeting 6 May, 2004. Schibsted ASA has repurchased 405,000 shares in 2003 for a total of NOK 27 million. The reason for the repurchase is that the Board of Directors assesses the repurchase as a favourable investment and in order to optimize the Groups capital structure. Parts of the shares are acquired in order to be used in connection with the employees share programmes. In connection with employees being given the opportunity to purchase shares at a discounted price, 47,482 shares were sold to the Schibsted Employees’ Share Purchase Fund in the 3rd quarter of 2003 at a price of NOK 100 per share. Per 31 December, 2003 Schibsted held 1,490,518 shares at a cost of NOK 127 million. Schibsted has established a rolling options program targeted at key persons within the Group. The program includes the Group Management (see note 8) and Managing directors and Editors in Chief of Aftenposten and VG. Within this program 120,000 options have been >> 72 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

issued in 2001, 105,000 in 2002 and 105,000 in 2003. Each year’s options are earned over three years. In connection with the option program 60,000 shares were sold at 5 March, 2004 at a cost of NOK 100 per share. After the transaction Scibsted holds 1,430,518 own shares. Earnings per share are calculated using an average number of shares of 67,823,899 in 2003, 68,204,378 in 2002 and 68,689,425 in 2001. Average diluted numbers of shares outstanding is 67,851,552 in 2003, 68,204,378 in 2002 and 68,689,425 in 2001. In periods the market price for the allocated options has been higher than the strike price and implies that the options have a dilutive effect on earnings per share. The dilutive effect is immaterial, henceearnings per share and earnings per share, diluted are both NOK 6.92 (NOK 2.26). For additional information related to the Group’s equity see Group functions and shareholder information on pages 50-51.

Note 21. Pension plans

Norwegian companies within the Schibsted Group maintain their collective pension schemes with Vital. The plans are mainly defined benefit plans, but certain companies have established defined contribution plans. The individual companies’ policies related to defined benefit plans are approximately uniform. The main conditions are 30-years salaried employment to obtain full pension, approximately 66 % retirement pension from the age of 67, and spouse and child pensions. At 31 December, 2003 the pension plan had 2,386 (2,436) working members. In addition to the funded pension obligations, the Group has unfunded obligations. These obligations relate to persons not included in the pension scheme, pensions for salaries above 12G, AFP, early retirement pensions and uninsured disability pensions. The subsidiaries outside Norway have pension schemes based on local practise and regulations. These pension schemes are accounted for as defined contribution plans.

Breakdown of net pension cost:

(NOK MILLION) 2003 2002 2001 Service cost 79 73 69 Interest cost 99 95 96 Expected return on plan assets (95) (97) (101) Amortisation of actuarial (gains) losses and past service cost (4) (2) (3)

Net pension cost – defined benefit plans 79 69 61 Net pension cost – defined contribution plans 73 53 52 Net pension cost 152 122 113

Breakdown of net pension liabilities at 31.December:

(NOK MILLION) 2003 2002 2001 Projected benefit obligation (1 905) (1 749) (1 711) Plan assets 1 440 1 415 1 380 Calculated net pension liabilities (465) (334) (331) Unrecognised actuarial (gains) losses and past service cost 24 (118) (120) Net pension liabilities (441) (452) (451)

Of which prepaid pension cost 6911 Of which accrued pension liabilities (447) (461) (462)

Assumptions: Discount rate 6,0 % 6,0 % 6,0 % Expected return on plan assets 7,0 % 7,0 % 7,0 % Wage growth 3,0 % 3,0 % 3,0 % Inflation / social security base adjustment 2,0 % 2,0 % 2,0 % Pension adjustment 2,0 % 1,6 % 1,6 %

Breakdown of plan assets at 31 December: 2003 2002 2001 Shares 13 % 11 % 23 % Short-term bonds 27 % 24 % 27 % Money market investments 9 % 22 % 13 % Real estate 12 % 11 % 11 % Long-term bonds 33 % 25 % 19 % Other 6 %7 %7 % Total 100 % 100 % 100 % >> 73 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Actual return on plan assets (value-adjusted return in Vital) was in 2003 approximately 10 %, in 2002 approximately 1 % and in 2001 approximately 1 %. The Union of Graphic Workers at Verdens Gang AS, has instituted legal proceedings against Verdens Gang AS regarding the company’s pension plan. The dispute is about what elements of wages that are to be included in the pension base. A potential legal decision will not be ready until the second half of 2004 at the earliest. Should the Union’s views be accepted, and given that any change is applied also to other employees in Verdens Gang AS and given that the pension plan in other respects remain unchanged, the annual net pension cost may increase by approximately NOK 5-6 million. Projected benefit obligations may increase by approximately NOK 40 million.

Note 22. Other provisions

Other provisions consist of the following items:

(NOK MILLION) 2003 2002 2001 Investments in associated companies (note 13) 202 174 128 Other provisions 695 Total 208 183 133

Investments in associated companies included in other provisions are related to the shareholding in 20 Min Holding AG. The investment is included in other provisions as Schibsted is committed to cover its share of losses in 20 Min Holding AG.

Note 23. Interest bearing long term debt

Interest bearing long term debt allocated by lenders and currency:

(NOK MILLION) VALUTA 2003 2002 2001 Den Nordiske Investeringsbank EUR 211 182 199 Den Nordiske Investeringsbank USD 147 177 206 Syndicated loan Flervaluta - 1 027 1 298 Bond issues NOK 900 - - Svenska Handelsbanken SEK 121 117 132 Financial lease agreements SEK 194 185 173 Other 51 20 27 Total 1 624 1 708 2 035

Loan from Den Nordiske Investeringsbank in EUR has a maturity of 10 years from 1999. The loan amounts to EUR 25 million and the interest rate is Euribor plus a margin. Loan from Den Nordiske Investeringsbank in USD has a maturity of 12 years from 1996. The loan amounts to USD 27 million and instal- ments and interest payments are hedged against NOK through a currency- and interest rate swap. The hedge entails an interest rate of NIBOR plus a margin. The syndicated loan is a revolving multicurrency credit facility with a maturity of 7 years entered into with 9 banks in 1997. As at 31 December, 2003 this facility is not used. The interest rate is the reference rate in the various currencies plus a margin. The syndicated loan has favourable terms compared with market terms obtainable today. The remaining borrowing limit (corresponding to USD 180 million) falls due in October 2004. In October 2003 the Group issued bonds in the Norwegian bond market for a total of NOK 900 million as part of the refinancing of the Group’s long term debt. The bonds issued are divided in a NOK 600 million fixed rate loan and a NOK 300 million floating rate loan. The fixed rate loan has a maturity of four years, an interest rate of 4.98 % pa. and the loan is listed at Oslo Stock Exchange (ticker SCHF01). The floating rate loan has a maturity of three years, the interest is three months NIBOR plus a margin of 0.50, and the loan is listed at Oslo Stock Exchange (ticker SCHF02). Loan from Svenska Handelsbanken includes a SEK 30 million loan due for repayment in 2005 and a SEK 100 mill loan due for repayment in 2007. The loans have fixed interest rates. Financial lease liabilities are related to printing machinery in Sweden. Two lease agreements (NOK 138 mill) with fixed interest rates expire in 2004. One lease agreement (NOK 56 million) with floating interest rate expires in 2013. See note 25 Financial market risk, regarding interest rate risk, liquidity reserves and refinancing of long term debt. >> 74 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Interest bearing long term debt is due for repayment as follows:

YEAR (NOK MILLION) 2004 180 2005 113 2006 379 2007 771 2008 77 2009 and later 104 Total 1 624

Note 24. Current liabilities

Current liabilities consist of the following items:

(NOK MILLION) 2003 2002 2001 Trade creditors 345 299 397 Public duties payable 254 243 210 Taxes payable 101 139 79 Dividends payable 207 140 140 Accrued wages 348 294 289 Prepayment from customers 308 224 257 Other current liabilities 484 491 592 Total 2 047 1 830 1 964

Note 25. Financial market risk

Foreign exchange risk NOK is Schibsted’s base currency, but through activities outside Norway the Group is exposed to change in foreign exchanges rates, mainly SEK, EEK and EUR. The Group uses debt denominated in foreign currencies and forward contracts in order to reduce the foreign exchange exposure related to net assets in these currencies. The Group holds at December 31, 2003 two forward contracts entered into for hedging purposes. Both contracts have maturity in 2004. The forward contracts involves sale of SEK 250 million and EUR 15 million, respectively, with purchase of corresponding amount in NOK. Unrealised foreign currency loss related to these contracts amounted to NOK 4 million at 31 December, 2003. Cash flows in foreign currencies related to investments and other significant transactions are hedged using financial instruments. Gains or losses on such instruments are deferred and included in income as part of the hedged transaction. At year-end, the Group did not hold such financial instruments.

Interest rate risk Schibsted has debt with both fixed and floating interest rates, see note 23 Interest bearing long term debt. In addition, Schibsted Finans entered into a 10-year NOK 100 million 7 % interest rate cap in April 1997. Including effects of interest rate agreements, approximately 50 % of the Group’s debt as per 31 December, 2003 has fixed interest rates. Schibsted has substantial pension liabilities which, opposed to interest bearing debt, are affected positively by an increase in the interest rate due to a corresponding increase in the discount rate. This reduces the need to hedge the interest rate on interest bearing long term debt.

Liquidity risk At 31 December, 2003 the Group’s liquidity reserves amounted to approximately NOK 2 billion, corresponding to 23 % of Group operating revenues. This is considered to be satisfactory. The Group’s target is a liquidity reserve corresponding to at least 10 % of the expected operating revenues for the next 12 months. Approximately NOK 1,200 million of the Group’s liquidity reserve related to the syndicated loan expires in October 2004. The Groups expects to refinance this with a new 5-year facility at a corresponding amount. The risk related to the refinancing is considered to be very limited. Schibsted’s loan agreements contain covenants concerning the Group’s equity ratio (equity > 30 %) and cash flow (cash flow/external finance > 10 %). The level of the Group’s liquidity reserves is conditional upon these requirements being met. At 31 December, 2003 the Group was far within the mentioned requirements.

Stock price risk At 31 December, 2003 the Group has limited exposure towards the equity market and therefore limited risk of loss in the event of fall in the market prices. >> 75 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Note 26. Additional information to the cash flow statement

The consolidated cash flow statement shows payments related to acquisition of subsidiaries and joint ventures net of cash acquired. Non-cash transactions in connection with the acquisitions are:

(NOK MILLION) 2003 2002 2001 Cash in companies acquired 11 6 14 Fair value of other current assets 5437 Fair value of fixed assets 174 78 65 Total fair value of assets acquired 190 88 116 Minority interests and liabilities assumed 1 (71) (34) Cash paid for equity 191 17 82 Cash in companies acquired (11) (6) (14) Payments for acquisition of subsidiaries, net of cash acquired 180 11 68

Note 27. Consolidated subsidiaries

The following subsidiaries, owned directly or indirectly by Schibsted ASA are included in the consolidated financial statements at 31 December, 2003:

- OWNERSHIP SHARE OF BUSINESS AREA NEWSPAPERS LOCATION % CONTROL % Aftenposten AS Oslo 100.00 % 100.00 % Aftenposten Annonseguiden AS Oslo 100.00 % 100.00 % Aftenposten Multimedia AS Oslo 100.00 % 100.00 % Distribution Innovation AS Oslo 80.00 % 80.00 % FINN Bil.no AS Oslo 62.00 % 62.00 % FINN Eiendom.no AS Oslo 49.60 % 49.60 % FINN Jobb.no AS Oslo 62.00 % 62.00 % FINN.no AS Oslo 62.00 % 62.00 % Gardermoen Avisdistribusjon AS Oslo 100.00 % 100.00 % Golfaxcess ASA Oslo 100.00 % 100.00 % Mediearkivet.no AS Oslo 100.00 % 100.00 % Oslopuls.no AS Oslo 100.00 % 100.00 % Aftonbladet Hierta AB Stockholm 100.00 % 49.90 % Aftonbladet Kolportage AB Stockholm 100.00 % 49.90 %* Aftonbladet Nya Medier AB Stockholm 100.00 % 49.90 % Hierta Affärsutveckling AB Stockholm 100.00 % 49.90 % Hierta Förlag AB Stockholm 100.00 % 49.90 % Hierta Venture AB Stockholm 100.00 % 49.90 % Tabloiden Förvaltnings AB Stockholm 100.00 % 49.90 % ASF Sverige AB Stockholm 100.00 % 59.14 % FinnMer AB Stockholm 72.80 % 43.00 % Blocket AB Stockholm 72.80 % 43.00 % Scanpix Scandinavia AB Stockholm 74.99 % 74.99 % OÜ Scanpix Baltics Tartu 83.57 % 83.57 % Scanpix Sverige AB Stockholm 74.99 % 74.99 % Scanpix Norge AS Oslo 37.57 % 37.57 % Svenska Dagbladet Holding AB Stockholm 99.41 % 99.41 % Annonsmaterial AB Stockholm 99.41 % 99.41 % HB Svenska Dagbladet AB & Co Stockholm 99.41 % 99.41 % Headhunter AB Stockholm 99.41 % 99.41 % Svensk Radiobokning AB Stockholm 99.41 % 99.41 % Svenska Dagbladets AB Stockholm 99.41 % 99.41 % Svenska Dagbladet Annons AB Stockholm 99.41 % 99.41 % Svenska Dagbladet Distribution AB Stockholm 99.41 % 99.41 % Svenska Dagbladet Executive Club AB Stockholm 99.41 % 99.41 % Svenska Dagbladet Venture AB Stockholm 99.41 % 99.41 % Svenskan Svenska Dagbladet AB Stockholm 99.41 % 99.41 %

*) Aftonbladet Hierta AB is owned by Schibsted and Swedish LO (the Swedish Labour Union). LO holds 50.1% of the voting shares through preferred shares with a fixed annual return (SEK 3.6 million). Schibsted holds 49.9% of the voting shares and is in charge of the industrial and financial development of Aftonbladet. >> 76 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Verdens Gang AS Oslo 100.00 % 100.00 % Avisretur AS Oslo 50.10 % 50.10 % Radio VG AS Oslo 100.00 % 100.00 % VG Multimedia AS Oslo 100.00 % 100.00 % VG Pluss AS Oslo 100.00 % 100.00 % Byt Bil Nordic AB Falkenberg 48.20 % 29.80 % European Media Ventures AB Stockholm 100.00 % 100.00 % European Media Ventures AS Oslo 100.00 % 100.00 % Fastighets AB Tidningsfabriken Stockholm 99.71 % 74.66 % Gratisavisen avis1 AS Oslo 100.00 % 100.00 % Mediearkivet AB Stockholm 66.00 % 66.00 % Osloavisen AS Oslo 100.00 % 100.00 % Schibsted AG Berlin 100.00 % 100.00 % Schibsted Eesti AS Tartu 100.00 % 100.00 % Schibsted Print Media AS Oslo 100.00 % 100.00 % Schibsted Trykk AS Oslo 100.00 % 100.00 % Tidningstryckarna Aftonbladet Svenska Dagbladet AB Stockholm 99.71 % 74.66 %

OWNERSHIP SHARE OF BUSINESS AREA ESTONIA LOCATION % CONTROL % AS Eesti Meedia Tartu 92.50 % 92.50 % AS Kroonpress Tartu 92.20 % 92.20 % AS Postimees Tallinn 92.50 % 92.50 % AS Pärnu Postimees Pärnu 92.50 % 92.50 % AS Viru Press Rakvere 52.03 % 52.03 % OÜ Gildi Maja Tartu 92.50 % 92.50 % OÜ Müügigrupp Tartu 92.50 % 92.50 % AS Kanal 2 Tallinn 100.00 % 100.00 %

- OWNERSHIP SHARE OF BUSINESS AREA TV / FILM LOCATION % CONTROL % Metronome Film & Television AB Stockholm 65.00 % 65.00 % Blarke Sonne Levring A/S Copenhagen 48.75 % 48.75 % Brand Selskapet A/S Copenhagen 48.75 % 48.75 % Bullet Productions A/S Copenhagen 48.75 % 48.75 % C. Wikander Produktion AB Stockholm 65.00 % 65.00 % Cosmo Televisjon AS Oslo 33.15 % 33.15 % Decimeter Film & TV AB Stockholm 65.00 % 65.00 % Drivankaret AB Stockholm 32.50 % 32.50 % Endemol Entertainment Produktion AB Stockholm 65.00 % 65.00 % European Film Group A/S Copenhagen 48.75 % 48.75 % Filmlance International AB Stockholm 39.00 % 39.00 % Helikopter A/S Copenhagen 48.75 % 48.75 % Helikopter Digital Media AB Gothenburg 65.00 % 65.00 % Hotel Seger AB Stockholm 65.00 % 65.00 % Intrige Television AS Oslo 36.40 % 36.40 % Mekano Enterprise AB Stockholm 65.00 % 65.00 % Mekano Film & Television AB Stockholm 48.75 % 48.75 % Mekano Film & Televisjon AS Oslo 65.00 % 65.00 % Meter Fakta AB Stockholm 65.00 % 65.00 % Meter Film & Television AB Stockholm 65.00 % 65.00 % Metronome Aps Copenhagen 65.00 % 65.00 % Metronome Film & Television Oy Helsinki 61.10 % 61.10 % Metronome Productions A/S Copenhagen 61.75 % 61.75 % Metronome Spartacus AB Stockholm 65.00 % 65.00 % Metronome Spartacus AS Oslo 53.95 % 53.95 % Metronome Studios A/S Copenhagen 63.31 % 63.31 % Moland Film Company A/S Copenhagen 48.75 % 48.75 % Moland Film Company AS Oslo 48.75 % 48.75 % Mutter Media AB Stockholm 65.00 % 65.00 % Nordic Entertainment A/S Copenhagen 65.00 % 65.00 % Nordic Entertainment AS Oslo 65.00 % 65.00 % Otto Tuotanto Oy Helsinki 45.83 % 45.83 % >> 77 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP

Peter Emanuel Falck Produktion AB Stockholm 65.00 % 65.00 % Post Selskapet A/S Copenhagen 48.75 % 48.75 % Rubicon TV AS Oslo 65.00 % 65.00 % TV Spartacus AB Stockholm 65.00 % 65.00 % TV Spartacus KB Stockholm 43.55 % 43.55 % Tvålkoppen AB Stockholm 43.55 % 43.55 % Metronome AS Oslo 100.00 % 100.00 % Schibsted Broadcast AS Oslo 100.00 % 100.00 % Schibsted TV & Film Infrastruktur AS Oslo 100.00 % 100.00 % Schibsted TV/Film & Forlag AS Oslo 100.00 % 100.00 %

- OWNERSHIP SHARE OF BUSINESS AREA PUBLISHING LOCATION % CONTROL % Bladkompaniet AS Oslo 100.00 % 100.00 % Boknöje AB Helsingborg 100.00 % 100.00 % Bullhead AB Stockholm 100.00 % 100.00 % Full Stop Media AB Stockholm 100.00 % 100.00 % Maison Sverige AB Stockholm 100.00 % 100.00 % Pol Nordica Publishing sp z.o.o. Warsawa 100.00 % 100.00 % Spesialbladforlaget AS Oslo 100.00 % 100.00 % Cesam Forlag AS Oslo 100.00 % 100.00 % Cesam Bok ANS Oslo 100.00 % 100.00 % Chr. Schibsted Forlag AS Oslo 100.00 % 100.00 % Dine Penger AS Oslo 100.00 % 100.00 % Dine Penger Online AS Oslo 100.00 % 100.00 % Schibsted Forlagene AS Oslo 100.00 % 100.00 % Schibsted Internasjonale Bøker AS Oslo 100.00 % 100.00 % Svenska Förlaget Holding AB Stockholm 100.00 % 100.00 % Svenska Förlaget AB Stockholm 100.00 % 100.00 % Stålfjæra 5 ANS Oslo 100.00 % 100.00 %

- OWNERSHIP SHARE OF OTHER OPERATIONS LOCATION % CONTROL % Schibsted Eiendom AS Oslo 100.00 % 100.00 % Akersgaten 55 AS Oslo 100.00 % 100.00 % AS Akersgaten 34 Oslo 100.00 % 100.00 % Jenagade 22 A/S Copenhagen 100.00 % 100.00 % Sandakerveien 121 AS Oslo 100.00 % 100.00 % Schibsted Finans AS Oslo 100.00 % 100.00 % Schibsted Media AB Stockholm 100.00 % 100.00 % Schibsted Multimedia AS Oslo 100.00 % 100.00 % Be Ep AB Oslo 100.00 % 100.00 % Beep Telekommunikasjon AS Oslo 100.00 % 100.00 % Bokkilden AS Oslo 100.00 % 100.00 % Inpoc AB Stockholm 99.94 % 94.93 % Inpoc AS Oslo 100.00 % 100.00 % Inpoc Baltics AS Tallinn 98.50 % 98.50 % Inpoc Latvia SIA Riga 98.50 % 98.50 % Inpoc UAB Vilnius 98.50 % 98.50 % Memento SOL AS Oslo 100.00 % 100.00 % SI Företagstjänster AB Stockholm 100.00 % 100.00 % SI Företagstjänster Holding AB Stockholm 100.00 % 100.00 % Schibsted Interactive Studio AS Oslo 100.00 % 100.00 % Schibsted Telecom AB Stockholm 99.94 % 94.93 % Schibsted Telecom AS Oslo 100.00 % 100.00 % >> 78 SCHIBSTED ANNUAL REPORT 2003 INCOME STATEMENT – SCHIBSTED ASA

(NOK MILLION) NOTE 2003 2002

Operating revenues 2 53 48

Personnel expenses 3 (48) (41) Depreciation 4 (2) (5) Other operating expenses 5 (48) (56)

Operating profit (loss) (45) (54)

Financial income 6 355 397 Financial expenses 6 (41) (119)

Net financial items 314 278

Profit before taxes 269 224

Taxes 7 (64) (71)

Net income 205 153

Information about:

Dividends (203) (136) Group contribution payable (187) (291) >> 79 SCHIBSTED ANNUAL REPORT 2003 BALANCE SHEET AT 31 DECEMBER – SCHIBSTED ASA

(NOK MILLION) NOTE 2003 2002

ASSETS

Deferred tax asset 7 7 19 IIntangible fixed assets 719

Tangible fixed assets 4 79

Investments in subsidiaries 8 989 885 Investments in associated companies 8 386 387 Investments in other shares 8 25 25 Other financial fixed assets 9,14 1 2 Financial fixed assets 1 401 1 299

Fixed assets 1 415 1 327

Receivables 10 386 401 Cash and bank deposits 11 6 387 Current assets 392 788

Total assets 1 807 2 115

EQUITY AND LIABILITIES

Share capital 69 69 Own shares (1) (1) Share premium reserve 76 76 Paid in capital 144 144

Other equity 957 977 Retained earnings 957 977

Equity 13 1 101 1 121

Pension liabilities 14 17 17 Provisions 17 17

Current liabilities 15 689 977

Total equity and liabilities 1 807 2 115 >> 80 SCHIBSTED ANNUAL REPORT 2003 CASH FLOW STATEMENT – SCHIBSTED ASA

((NOK MILLION) 2003 2002

CASH FLOW FROM OPERATING ACTIVITIES Profit before taxes 269 224 Taxes paid (4) - Depreciation 25 Write-downs financial fixed assets 30 110 Write-downs receivables -8 Group contribution included in financial income (284) (348) Change in short term receivables (49) 53 Change in short term receivables (372) 380 Difference between pension cost and cash flow related to pension plans 2 2

Cash flow from operating activities (406) 434

CASH FLOW FROM INVESTING ACTIVITIES Investments in tangible fixed assets - (1) Investments in equity investments - (10)

Cash flow from investing activities - (11)

CASH FLOW FROM FINANCING ACTIVITIES New short term interest bearing debt 124 91 Group contribution received (net) 58 18 Dividends paid (135) (137) Repurchase / sale of own shares (22) (16)

Cash flow from financing activities 25 (44)

Cash flow for the year (381) 379

Cash and cash equivalents at 1 January 387 8

Cash and cash equivalents at 31 December 6 387 >> 81 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS – SCHIBSTED ASA

Note 1. Accounting principles

Schibsted ASA follows the accounting principles described in note 1 to the consolidated financial statements except for the treatment of investments in subsidiaries and associated companies. Investments in subsidiaries and associated companies are accounted for using the cost method in the parent company financial statements and are written down if the carrying value exceeds recoverable amount. The write-down is reversed if the basis for the write-down is no longer present. Group contribution receivable is included in financial income provided that the group contribution receivable does not represent a repayment of paid in capital. Group contribution receivable which represent a repayment of paid in capital is accounted as a reduction in the cost of investments in subsidiaries. Net group contribution payable (gross group contribution less tax effect) is included in the cost of investments in subsidiaries. Dividends from associated companies are included in financial income.

Note 2. Operating revenues

Operating revenues consists of:

(NOK MILLION) 2003 2002 Revenues 21 Other operating income 51 47 Total 53 48

Revenues consist of accounting fees and other fees for assistance to other group companies. Other operating income consists of royalty related to the publishing rights of VG. The royalty agreement expired 31 December, 2003.

Note 3. Personnel expenses and average number of employees

Personnel expenses consist of:

(NOK MILLION) 2003 2002 Salaries and wages 32 28 Social security cost 76 Net pension cost (note 14) 44 Other personnel expenses 53 Total 48 41

Average number of employees has been 58 in 2003 included trainees.

Note 4. Tangible fixed assets

EQUIPMENT / (NOK MILLION FURNITURE / VEHICLES Cost at 1 January 2003 37 Additions - Disposals at cost - Cost at 31 December 2003 37

Accumulated depreciation at 1 January 2003 (28) Depreciation 2003 ( 2) Disposals - Accumulated depreciation at 31 December 2003 (30)

Book value at 31 December 2003 7

Depreciation method Straight line Estimated useful life 3–10 years Annual operating lease payments 12

Depreciation in 2003 includes depreciation of leasehold improvements with NOK 1 million. >> 82 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS – SCHIBSTED ASA

Note 5. Other operating expenses

Other operating expenses consist of:

(NOK MILLION) 2003 2002 Rent, maintenance etc. 15 15 Office- and administrative expenses 10 16 Professional fees 13 9 Travel, meetings and marketing 10 12 Loss on receivables -4 Total 48 56

Note 6. Net financial items

Financial income consists of:

(NOK MILLION) 2003 2002 Interest income 11 Group contribution receivable 284 348 Dividends from associated companies 70 42 Other financial income -6 Total 355 397

Financial expenses consist of:

(NOK MILLION) 2003 2002 Interest expense -1 Interest expense cash pool system 11 8 Write-downs investments in subsidiaries 30 71 Write-downs investment in other shares - 39 Total 41 119

Group contributions payable to Schibsted Multimedia AS and subsidiaries of Schibsted Multimedia AS in 2003, NOK 41 million (net), has been capitalised as part of the investment in Schibsted Multimedia AS. The investment in Schibsted Multimedia AS has been written down by NOK 30 million in 2003.

Note 7. Taxes

Below is set out the difference between profit before taxes and taxable income:

(NOK MILLION) 2003 2002 Profit before taxes 269 224 Permanent differences 31 74 Change in temporary differences (43) 51 Taxable income 257 349

Tax rate 28 % 28 % >> 83 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS – SCHIBSTED ASA

Income taxes and taxes payable are calculated as follows:

(NOK MILLION) 2003 2002 Calculated taxes payable 72 98 Tax credit on dividends (20) (13) Current income taxes 52 85 Taxes payable related to group contribution payable (52) (81) Taxes payable -4

Current income taxes 52 85 Deferred income taxes 12 (14) Taxes 64 71

Deferred tax asset consists of the following items:

(NOK MILLION) 2003 2002 Temporary differences related to: Tangible fixed assets (6) (7) Investments in other shares - (39) Prepaid pension cost 12 Accrued pension liabilities (17) (17) Other financial fixed assets - (1) Receivables - (8) Own shares 2- Current liabilities ( 7) - Total temporary differences (27) (70)

Tax rate 28 % 28 %

Deferred tax asset (7) (19)

Note 8. Investments in shares

(NOK 1000) OWNERSHIP % LOCATION BOOK VALUE

Investments in subsidiaries Aftenposten AS 100.00 Oslo 30 000 Chr. Schibsteds Forlag AS 100.00 Oslo 70 Metronome AS 100.00 Oslo 119 377 Osloavisen AS 100.00 Oslo 104 Schibsted Eiendom AS 100.00 Oslo 115 905 Schibsted Finans AS 100.00 Oslo 290 127 Schibsted Media AB 100.00 Stockholm 492 Schibsted Multimedia AS 100.00 Oslo 97 200 Schibsted Print Media AS 100.00 Oslo 270 066 Schibsted TV. Film & Forlag AS 100.00 Oslo 40 539 Verdens Gang AS 100.00 Oslo 25 000 Total 988 880

Group contribution payable to subsidiaries, NOK 135 million (net), is capitalised as part of the investments in subsidiaries.

Investments in associated companies Adresseavisen ASA 31.86 Trondheim 105 382 Bergens Tidende AS 22.67 Bergen 78 512 Fædrelandsvennen AS 25.00 Kristiansand 15 000 Fædrelandsvennen Trykkeri AS 25.00 Kristiansand 20 Stavanger Aftenblad ASA 31.48 Stavanger 60 071 TV 2 AS 33.34 Bergen 127 290 Total 386 275 >> 84 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS – SCHIBSTED ASA

(NOK 1000) OWNERSHIP % LOCATION BOOK VALUE Investments in other shares Asker og Bærums Budstikke ASA 10.20 Billingstad 20 781 Harstad Tidende AS 11.21 Harstad 3 132 Scanpix Scandinavia AB 18.32 Stockholm 1 550 Total 25 463

Ownership (%) equals share of control.

Note 9. Other financial fixed assets

Other financial fixed assets consist of:

(NOK MILLION) 2003 2002 Prepaid pension cost (note 14) 12 Total 12

Note 10. Receivables

Receivables consist of:

(NOK MILLION) 2003 2002 Short term receivables group companies 383 396 Other receivables 35 Total 386 401

Note 11. Cash and bank deposits

Schibsted ASA's bank accounts are part of the Schibsted Group’s cash pool with Danske Bank. The cash pool system is created to optimise cash management within the Group. The cash pool is led and administrated by Schibsted Finans AS. Schibsted ASA has per December 31, 2003 an overdraft of NOK 277 million in the cash pool system. The overdraft is included in Current liabilities. Change in cash and bank deposits is primarily due to decrease in short term liabilities to subsidiaries due to settlement of the NOK 370 million property sale.

Note 12. Ownership structure

Shareholders at 31 December, 2003:

NUMBER OF SHARES SHARE % Blommenholm Industrier AS v/Tinius Nagell-Erichsen 18 083 520 26.11 Fidelity Funds 1) 6 876 227 9.93 Folketrygdfondet 5 680 400 8.20 State Street Bank & Trust Co 5 065 385 7.31 Marathon Asset Management 1) 4 115 228 5.94 JP Morgan Chase Bank 3 419 786 4.94 Mellon Bank 3 396 495 4.90 Orkla ASA 1 605 331 2.32 JP Morgan Chase Bank 877 675 1.27 Vital Forsikring ASA 853 650 1.23 The Northern Trust Co 683 830 0.98 Guri Scotford’s Schibsted Trust 650 000 0.93 The Northern Trust Co 562 296 0.81 Svenska Handelsbanken 524 241 0.75

1) Fidelity Funds and Marathon buy using nominee accounts. Shares held by Fidelity Funds and Marathon may thus also be included in shares held by other shareholders on the list. >> 85 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS – SCHIBSTED ASA

NUMBER OF SHARES SHARE % Bank of New York 520 877 0.75 Mellon Bank 507 558 0.73 Storebrand Livsforsikring 466 450 0.67 State Street Bank & Trust Co 433 191 0.62 Euroclear Bank 429 551 0.62 DnB Norge 425 181 0.61 20 largest shareholders 55 176 872 79.68

Berit Bjerg 678 Hilde Harbo 641 Cato A. Holmsen 200 Alexandra Bech Gjørv - Gunnar Nordby 641 Jan Reinås 1 950 Ole Jacob Sunde 50 000 Lars M. Berg - Monica Birgitta Caneman - Håkon Olav Kjernsmo 77 Kjell Aamot 12 641 Trond Berger 5 465 Jan Erik Knarbakk 4 479 Birger Magnus 9 002 Sverre Munck 2 388 Total Board of Directors and Group Management 88 162

Total number of shares outstanding as per December 31, 2003 is 69,250,000 and number of shareholders is 5,544. Foreign ownership is 42.6 %. Schibsted ASA holds 1,490,518 own shares per 31 December, 2003.

In connection with the options program 60,000 shares were sold at 5 March, 2004 at NOK 100 per share. After the transaction the balance of own shares are 1,430,518 shares.

Note 13. Equity

Changes in shareholders’ equity were as follows in 2003:

SHARE SHARE OWN PREMIUM OTHER (NOK MILLION) CAPITAL SHARES RESERVE EQUITY TOTAL Equity at 31 December 2002 69 (1) 76 977 1 121 Repurchase / sale of own shares (0) (22) (22) Net income 205 205 Dividends (203) (203) Equity at 31 December 2003 69 (1) 76 957 1 101

Schibsted ASAs share capital consists of 69,250,000 shares par value NOK 1. Par value of own shares NOK 1,490,518 is presented in a separate line of paid in capital. Purchase price exceeding par value is deducted from other equity.

Note 14. Pension plans

For description and assumptions of the pension plans and a breakdown of plan assets for Schibsted ASA, see note 21 to the consolidated financial statements. As per December 31, 2003 the pension plan had 45 members.

Breakdown of net pension cost:

(NOK MILLION) 2003 2002 Service cost 55 Interest cost 22 Expected return on plan assets (3) (3) Net pension cost 44 >> 86 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS – SCHIBSTED ASA

Breakdown of net pension liabilities at 31 December:

(NOK MILLION) 2003 2002 Accumulated benefit obligation (44) (38) Value of future wage growth (10) ( 9) Projected benefit obligation (54) (47) Plan assets 43 43 Calculated net pension liabilities (11) (4) Unrecognised gains and losses ( 5) (11) Net pension liabilities (16) (15)

Of which prepaid pension cost 12 Of which accrued pension liabilities (17) (17)

Note 15. Current liabilities

Current liabilities consist of following items:

(NOK MILLION) 2003 2002 Trade creditors 31 Taxes payable (note 7) -4 Public duties payable 44 Dividends payable 203 136 Short term liabilities group company (cash pool system) (note 11) 277 153 Short term liabilities group companies 187 672 Other current liabilities 15 7 Total 689 977

Note 16. Guarantees

(NOK MILLION) 2003 2002 Guarantees in respect of loans to group companies 2 859 2 331 Other guarantees in respect of group companies 211 219 Other guarantees 14 11 Total 3 084 2 561

Of total committed loans of NOK 3.1 billion to group companies guaranteed by Schibsted ASA, NOK 1.9 billion was drawn at December 31, 2003. NOK 1.5 billion was drawn at December 31, 2002. Other guarantees in respect of group companies include guarantees issued in respect of leasing of print presses in Tidningstryckarna Aftonbladet Svenska Dagbladet AB of NOK 85 million. In addition, Schibsted ASA has issued guarantees of up to NOK 125 million towards Danske Bank in respect of guaranties for tax withholdings and other guarantees issued by Danske Bank in respect of subsidiaries. Schibsted ASA has issued guarantees in respect of loans to employees in the Schibsted Group totalling NOK 10 million, and issue guarantees in respect of unfunded pension liabilities totalling NOK 4 million.

Note 17. Guarantees in respect of employees

Schibsted ASA has issued guarantees in respect of loans to employees in the Group totalling NOK 10 million of which guarantees in respect of members of the Group Management amounts to NOK 2 million. The loans have an optional repayment plan and an interest rate of 1-1,5 % under marked interest in 2003.

Guarantees in respect of the Group Management are allocated as follows:

(NOK MILLION) 2003 Kjell Aamot 800 Trond Berger 804 Sverre Munck 390 Total 1 994 >> 87 SCHIBSTED ANNUAL REPORT 2003 NOTES – SCHIBSTED GROUP >> 88 THE SCHIBSTED GROUP ANNUAL REPORT 2003 COMPANY STRUCTURE

NEWSPAPERS TV, FILM & PUBLISHING

NEWSPAPERS FILM- AND TV-PRODUCTION

> Aftenposten AS NO 100 % > Metronome Film & Television AB SE 65 % • Oslo Puls AS NO 100 % • Filmlance International AB SE 60 % • Mediearkivet.no AS NO 100 % • Meter Fakta AB SE 100 % • Aftenposten Multimedia AS NO 100 % • Meter Film & Television AB SE 100 % • FINN.no AS NO 62 % • Mutter Media AB (Mekaniken) SE 100 % > Verdens Gang AS NO 100 % • Big Brother KB SE 50 % • VG Multimedia AS NO 100 % Rubicon TV AS NO 100 % • Avisretur AS NO 50 % • Metronome Spartacus AS NO 83 % > Aftonbladet Hierta AB * SE 49 % • Intrige Television AS NO 56 % • Hierta Förlag AB SE 100 % Metronome Film & Television OY FI 94 % • Aftonbladet Nya Medier AB SE 100 % • Metronome Productions AS DK 95 % > Svenska Dagbladet Holding AB SE 99 % • Metronome Studios AS DK 97 % > Gratisavisen Avis 1 AS NO 100 % • European Film Group AS DK 75 % > 20 Min Holding AG CH 98 % Blarke, Sonne Levring AS DK 100 % • 20minuten (Schweiz) AG CH 50,5 % Bullet Productions AS DK 100 % • Multiprensa Holding SL ES 70 % Moland Film Company AS DK 100 % > 20minutes France S.A.S. FR 50 % Moland Film Company AS NO 100 % > Blocket AB SE 72,8 % Otto Tuanato OY FI 100 %

REGIONAL NEWSPAPERS DISTRIBUTION AND RIGHTS > Stavanger Aftenblad ASA NO 31 % > Fædrelandsvennen AS NO 25 % > Sandrew Metronome AB SE 50 % > Harstad Tidende Gruppen AS NO 49 % • Sandrew Metronome Sverige AB SE 100 % > Bergens Tidende AS NO 24 % • Sandrew Metronome Distribution Sverige AB SE 100 % > Adresseavisen ASA NO 32 % • Sandrew Metronome International AB SE 100 % • Sandrew Metronome Danmark AS DK 100 % • Sandrew Metronome Video Danmark AS DK 100 % SCHIBSTED IN ESTONIA • Sandrew Metronome Bio Danmark AS DK 100 % • Sandrew Metronome Finland OY AB FI 95 % > AS Kanal 2 EE 100% • Sandrew Metronome Distribution Finland OY AB FI 100 % > AS Eesti Meedia EE 93 % • Sandrew Metronome Norge AS NO 100 % • AS Postimees EE 100 % • AS Ajakirjade Kirjastus EE 50 % TV (Estonian Magazine Group) • AS SL Õhtuleht EE 50 % > TV 2 Gruppen AS NO 33 % • TV 2 Interaktiv AS NO 88 % • TV 2 Nettavisen AS NO 100 % PRINTING PLANTS • TV 2 Invest AS NO 100 % • TV Norge AS NO 49 % > Schibsted Trykk AS NO 100 % • Kanal 24 Norge AS NO 34 % > AS Kroonpress EE 99,7 % > Tidningstryckarna Aftonbladet PUBLISHING COMPANIES SCHIBSTED-FORLAGENE Svenska Dagbladet AB SE 100%

Bladkompaniet AS NO 100 % PICTURE AND NEWS AGENCIES • Cesam Forlag AS NO 100 % • Spesialbladforlaget AS NO 100 % > Scanpix Scandinavia AB SE 75 % • Boknöje AB SE 100 % • Scanpix Danmark AS DK 49 % • Full Stop Media AB SE 100 % • Scanpix Norge AS NO 50 % • Manga Media AB SE 50 % • Scanpix Sverige AB SE 100 % > Chr. Schibsteds Forlag AS NO 100 % • Scanpix Baltics EE 100 % > Dagens Medisin AS NO 50 % > Norsk Telegrambyrå AS (NTB) NO 22 % > Dine Penger AS NO 100 % > Tidningarnas Telegrambyrå AB SE 30 % • Dine Penger Online AS NO 100 % > Schibsted Internationale Bøker AS NO 100 % > Svenska Förlaget AB SE 100%

*) Schibsted controls 100 % > Schibsted’s ownership • Subsidiary’s Ownership >> 89 THE SCHIBSTED GROUP ANNUAL REPORT 2003 ADDRESSES

AFTENPOSTEN EESTI MEEDIA GROUP SCHIBSTED TRYKK Biskop Gunnerus gate 14 Maakri 23a Sandakerveien 121 P.O. Box 1 EE-10145 TALLIN P.O. Box 4583 Nydalen NO-0159 OSLO Telephone: + 372 666 2350 NO-0404 OSLO Telephone: + 47 22 86 30 00 Fax: + 372 666 2351 Telephone: + 47 23 39 10 00 Fax: + 47 22 86 40 39 E-mail: [email protected] Fax: + 47 23 39 10 01 E-mail: [email protected] www.eestimeedia.ee E-mail: [email protected] www.aftenposten.no EUROPEAN MEDIA VENTURES SVENSKA DAGBLADET AFTONBLADET Apotekergaten 10 Mäster Samuelsgatan 56 Arenavägen 63, Globen City P.O. Box 490 Sentrum SE-105 17 STOCKHOLM SE-105 18 STOCKHOLM NO-0105 OSLO Telephone: + 46 8 13 50 00 Telephone: + 46 8 725 20 00 Telephone: + 47 23 10 66 00 Fax: + 46 8 13 58 50 Fax: + 46 8 600 01 70 (adm.) Fax: + 47 23 10 66 01 E-mail: [email protected] + 46 8 600 01 77 (editorial office) www.svd.se E-mail: [email protected] (tips), FINN.NO [email protected] Grensen 5 SVENSKA FÖRLAGET (readers’ service) P.O. Box 1178 Sentrum Döbelnsgatan 21 www.aftonbladet.se NO-0107 OSLO P.O. Box 3313 Telephone: + 47 22 86 44 10 SE-103 66 STOCKHOLM AVIS1 Fax: + 47 22 82 78 23 Telephone: + 46 8 412 27 00 Biskop Gunnerus gate 14 E-mail: [email protected] Fax: + 46 8 411 41 30 P.O. Box 1 www.finn.no E-mail: [email protected] NO-0159 OSLO www.svenskaforlaget.com Telephone: + 47 22 33 10 00 METRONOME FILM & TELEVISION Mobile/Fax: + 47 949 58 896 Magasin 5, Frihamnen TIDNINGSTRYCKARNA AFTONBLADET E-mail: [email protected] P.O. Box 27 837 SVENSKA DAGBLADET www.avis1.no SE-115 93 STOCKHOLM Vandagatan 3, Akalla Telephone: + 46 8 459 73 40 Box 45 BLADKOMPANIET Fax: + 46 8 459 73 49 SE-164 93 KISTA Apotekergaten 12 E-mail: [email protected] Telephone: + 46 8 703 43 00 P.O. Box 6974 St. Olavs plass www.metronome.se Fax: + 46 8 703 90 04 NO-0130 OSLO E-mail: [email protected] Telephone: + 47 24 14 68 00 SANDREW METRONOME Fax: + 47 24 14 68 01 Floragatan 4 VERDENS GANG E-mail: bladkompaniet@ P.O. Box 5612 Akersgaten 55 bladkompaniet.no SE-114 86 STOCKHOLM P.O. Box 1185 Sentrum www.bladkompaniet.no Telephone: + 46 8 762 17 00 NO-0107 OSLO Fax: + 46 8 762 17 80 Telephone: + 47 22 00 00 00 BOKKILDEN E-mail: morten.kongrod@ Fax: + 47 22 42 67 80 Grensen 16 sandrewmetronome.com E-mail: [email protected] P.O. Box 1178 Sentrum www.sandrewmetronome.se www.vg.no NO-0107 OSLO www.sandrewmetronome.no Telephone: + 47 23 31 77 00 www.sandrewmetronome.dk 20 MIN HOLDING Fax: + 47 23 31 77 01 www.sandrewmetronome.fi Thurgauerstrasse 40 E-mail: kundeservice@ CH-8050 ZÜRICH bokkilden.no SCANPIX SCANDINAVIA Telephone: + 41 1 307 42 82 www.bokkilden.no Smedjegatan 6 Fax: + 41 1 307 42 81 Box 860 E-mail: [email protected] CHR. SCHIBSTEDS FORLAG SE-131 25 NACKA www.20minuten.ch Apotekergaten 12 Telephone: + 46 8 52 72 50 00 www.20minutes.fr P.O. Box 6973 St. Olavs plass Fax: + 46 8 52 72 50 01 www.20minutos.es NO-0130 OSLO E-mail: [email protected] Telephone: + 47 24 14 69 00 www.scanpix.com SCHIBSTED ASA Fax: + 47 24 14 69 01 Apotekergaten 10 E-mail: schibsted.forlag@ schibsted.no SCHIBSTED INTERNASJONALE BØKER P.O. Box 490 Sentrum www.schibsted-forlag.no Apotekergaten 10 NO-0105 OSLO P.O. Box 6972 St. Olavs plass Telephone + 47 23 10 66 00 DAGENS MEDISIN NO-0130 OSLO Fax + 47 23 10 66 01 Apotekergaten 12 Telephone: + 47 24 14 69 30 E-mail: [email protected] P.O. Box 6970 St. Olavs plass Fax: + 47 24 14 69 31 www.schibsted.no NO-0130 OSLO E-mail: [email protected] Telephone: + 47 24 14 68 70 Fax: + 47 24 14 68 71 SCHIBSTED TELECOM E-mail: post@ Pilestredet 10 dagensmedisin.no P.O. Box 1178 Sentrum www.dagensmedisin.no NO-0107 OSLO Telephone: + 47 23 10 67 80 Fax: + 47 23 10 67 81 E-mail: [email protected] The addresses of all Schibsted’s subsidiaries www.inpoc.com can be found at www.schibsted.no Consept and design: COBRA Photo: Schibsted, Ole Walter Jacobsen, Getty Images, © Image Bank Print: Kampen Grafisk

www.schibsted.no

Apotekergaten 10, P.O. Box 490 Sentrum, NO-0105 OSLO, NORWAY Telephone +47 23 10 66 00, Fax +47 23 10 66 01 E-mail: [email protected]