With Customers in Mind. W

ANNUAL REVIEW 2015.

This is Bonnier. We continuously reinvent media. Bonnier is the Nordic region’s leading media company, with over 200 years of experience in changing media markets. We are based in Sweden, have operations in 15 countries and are wholly owned by the Bonnier family. Our businesses span the media spectrum, with a strong historic core in independent journalism and book publishing. Now we are working to turn Bonnier into a leading digital media group.

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Contents 4 6 12

Guaranteeing the future. With Customers in Mind. Where Consumers Are ... In 2015, Bonnier showed that we can reach Three companies. Three different Power lies in the hands of consumers as a balance between investing in the future and approaches to growing and developing never before when it comes to digital media. being profitable, says CEO Tomas Franzén. business with a focus on the consumer. What are the trends affecting media?

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Books. Broadcasting. Business to Business. It was a stable year of literary and Record digital consumption and continued Record profits made 2015 a great year, commercial success, with new initiatives high linear viewing marked the year. And with a number of major acquisitions such like Type & Tell, with head of business new viewers were reached through projects as Deutsche Wirtschafts Nachrichten, development Rebecka Leffler. like multi-channel network ENT. with Christoph Hermann.

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Growth Media. Magazines. News. An intensive year of investments The business area's house & home Earnings improved and digital readership and or ganic growth included the launch titles in the Nordic region improved increased, with more online subscribers of Kit, with Linda Öhrn Lernström, profitability, with Erik Rimmer and digital ad sales than ever, head of features. and Helena la Corte. says CDO Charlotte Svensson.

28 Financial Result 2015. 32 About Bonnier. 32 Our Core Values. 34 Living the values.

36 Board and Group. 38 12 Great Moments in the History of Bonnier.

CEO Guaranteeing the Future. Our common goal is to guarantee the future of Bonnier as a strong media company over the long term with a core in journalism and storytelling.

BONNIER FACES A TRUE CHALLENGE. In order to survive and be a leading digital media group, we need to work in smarter ways and more effectively in our traditional businesses, while at the same time being more innovative than ever in developing our media and creating new services.

WE MUST QUICKLY INCREASE REVENUES from new and digital sources. The year 2015 was a first step towards this for Bonnier. A year in which we showed that we can reach a balance between investing in the future and being profitable in the here and now. We made big investments in digitalization at the same we had an EBITA of more than SEK 1 billion, well in line with what we budgeted.

DURING 2015, we moved further ahead in our goal of having half of our revenues coming from new and digital sources. For 2015, this number was 20 percent compared to 15 percent for 2014.

WITH ALL THE STRONG BRANDS and talent within Bonnier, we have a really good chance at succeeding. More importantly, this is completely up to us. We are streamlining, reinvesting and working with our organization and culture through an increased focus on technology, new business and important revenue sources and, above all, on our customers. Advertising will continue to be a significant and important revenue source, but I believe it is through our customers, not our advertisers, that we will grow.

JOURNALISM will probably be a smaller part of Bonnier’s business in 10 years than it has been historically, but journalism and storytelling will continue to be a part of Bonnier’s core and the company’s identity.

IF WE FAIL TO INCREASE our digital revenues quickly, in just a few years we will lose credibility as a media company that can thrive over the long term. One of our editors-in-chief described a period of poor results in a journalism business as a “wet blanket” over the news desk. And I wholeheartedly believe that to be true. Financial stability is a prerequisite for long-term success and strong and independent media.

We are and will continue to be a media company that is proud of its role Read more about the in society and what we contribute in the form of strong, independent media. financial results on page 28. A wide range of voices is a foundation for an open and democratic society.

Tomas Franzén, CEO Bonnier AB

BONNIER ANNUAL REVIEW 2015 5 “Right now I’m listening mostly to books about Nelly Rapp, who is a monster agent. I listen every night when I go to bed and also while I’m playing with Lego or drawing.” VIDE ERIKSSON, 8-YEAR-OLD BOOK- BEAT FAN FROM SKÖNDAL, SWEDEN CUSTOMERS MIND Money back when you shop, books on your s martphone and a business daily expanding digitally. BookBeat, Refunder CUSTOMERS and Bonnier Business Polska all put digital customers in focus, but in different ways.

TEXT: KARIN STRAND | PHO TOS: PETER JÖNSSON WITH CUSTOMERS IN MIND

ET MONEY BACK when you shop online. That’s the message that cashback site Refunder has tried to hammer home to the Swedish public since it started in April 2014. G Now the message seems to have reso- “Of course you want to get a nated with Swedes, and the number good deal. I always check first of members is growing steadily. with Refunder to see if they’ve “The challenges since we started have got an offer. You earn a bit of been building the brand and recruiting money, naturally, but actually probably end up buying more members,” says Refunder CEO Fredrik in the end.” Ohlsson. “It’s getting people to under- REFUNDER CUSTOMER ALEXANDRA stand that the deal is as good as ASPGREN, VENDELSÖ, SWEDEN it sounds, that there’s no hook. Our strategy has been extremely conserva- tive in our message, and the goal is to get people to make a first purchase.”

REFUNDER IS A SERVICE that connects consumers with e-commerce. Online stores pay a commission for purchases made through Refunder. Consumers get half of the commission in the form Refunder in short only 15 percent of our members make of a refund placed directly into their returns. It speaks for itself that accounts, with Refunder getting the Refunder members are valuable for other half. • Launched on April 1, 2014 online stores. “So actually the online stores are our • Cashback service with 119, 000 member s “We have no problem recruiting new customers, but our members are who we • Six employees work at its offices in stores. It’s completely risk-free for them, Stockholm communicate with,” says Ohlsson. • Some SEK 14 million in turnover for 2015 since they only pay a commission for an With help from Bonnier Growth Media, www.refunder.se actual purchase. Everyone wins under Refunder has gotten access to channels the concept.” within Bonnier, like TV4, daily newspaper Expressen and magazines. LEARNING TO OPTIMIZE the different “It’s been crucial to our success,” says communication channels has been a Ohlsson. “We wouldn’t have been able constant learning curve for Refunder. to do this by ourselves or with a differ- The company has operated in 20 different ent partner.” channels, and Ohlsson describes the environment as “a jungle.” AND IT’S DEFINITELY BEEN a success. Right now, Refunder is working on The number of members in a year and activating members and getting them a half has grown to 119,000 and the to buy more, according to the principle online stores cover essentially all areas. that add-on sales cost less than new The typical member is a 37-year-old sales. This is being done via segmen- woman living in a big city. tation, with members receiving offers “The average online purchase in Sweden tailored just for them. amounts to SEK 830, but for our “But we can be better at this,” says members the average is SEK 1,291,” says Happy Socks is a popular boutique Ohlsson. “We want our members to feel Ohlsson. “If you look at returns, some at Refunder. they’re in a pleasant e-commerce bubble, 30 percent return their purchases but receiving offers tailored for them.”

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HILE MARKETING A NEW service in Sweden has been the challenge for Refunder, for the startup BookBeat the challenge is taking market share in an already existing but fast-growing market. The first users Wregistered at the end of 2015, with a broad launch beginning in the second quarter of 2016. BookBeat is a service that offers subscribers the chance to read and listen to books directly on their smartphones via an app. “There’s already a market for this kind of “We want our service,” says Niclas Sandin, CEO of BookBeat. For Bonnier Books, starting BookBeat is a way members to feel to join in and drive development forward. they’re in a pleasant “WHAT’S UNIQUE ABOUT the initiative is that we’re e-commerce bubble, building a service and organization that from the start can adapt to and handle future changes, receiving offers when it comes to both technical development and customer behavior,” Sandin says. tailored for them.” “So more than half of our internal competence Fredrik Ohlsson, CEO of Refunder consists of technical developers.”

9 WITH CUSTOMERS IN MIND

BookBeat is for digital book service fans as well as people curious about e-book and audiobook services who simply haven’t tried them yet.

to reach the market quickly and once BookBeat in short there, dare to experiment and create the best service with real customer feedback. I believe that if you try to find • Development started in March 2015 • Wide launch in Q2 2016 the perfect solution for all customers’ • Digital subscription service for digital books problems already at the drawing board, • Around 25 employees at end of 2015 you risk paralyzing your organization.” www.bookbeat.com BOOKBEAT’S TARGET AUDIENCE is in part experienced digital book service users, BookBeat offers in part people who are curious about subscribers the such services but haven’t tried them yet. chance to read and To find new subscribers, thecompany listen to books directly is looking to partner up with other on their smartphones “We want to be via an app. digital services that potential customers already use. And of course take advan- a part of people’s tage of the fact that BookBeat is part of the Bonnier group to find internal daily life. We don't partnerships. Development started in March 2015, and “When we start to get subscribers to want to be the by the end of November the first version the service, we will need to be best at gym membership of the app was out. A limited number presenting the right content for the right of users were invited to test it and people and make sure they really use the that you use once provide feedback, and the response was service,” says Sandin. “We don’t want swift. Along with tips for which books to be the gym membership that you use and then never they would like in the app, users have once and then never again. We want to again.” suggested new functions that have been be a part of people’s daily life.” added regularly with each new version Niclas Sandin, of the app released. BOOKBEAT IS A LONG-TERM initiative CEO of BookBeat “The biggest challenge has been to keep that, once established in Sweden, up the fast pace of development and will expand internationally. Sandin to manage expectations for the first is already looking at which markets version,” says Sandin. “We decided early have potential and what new ways of on that it was most important for us marketing will be necessary.

10 BONNIER ANNUAL REVIEW 2015 PHOTOS: BONNIER BUSINESS POLSKA

"Puls Biznesu offers all the modern tools that allow our customers to be updated on the go. We at PB have the know-how to make high-quality content based on old print rules: reliability, depth of knowledge and speed." PULS BIZNESU BANKING JOURNALIST EUGENIUSZ TWAROG

NE COMPANY that “Our strategy has always been to grow reached out into Bonnier Business digitally and find synergies with our a new market in existing business,” says Deyna. “Next up 2015 is Bonnier Polska in short is a push to develop our event business Business Polska. within the newly acquired companies Following two – it’s an area where we have a lot of ex- • Launched at end of 1996 acquisitions, • Business daily Puls Biznesu and portal perience. We might also develop a new the company modeled on Swedish business daily Dagens product in the online test-prep arena.” finds itself in a new, digital and more industri, now includes customer-oriented She stresses that her employees have O finance and business portal and affiliate con sumer-oriented market, something been key to the success. “A team with that’s led to more than half of the com- network common goals, a cost-effective structure • Around 250 employees pany’s revenues in 2015 coming from and an integration plan are deciding • Some SEK 140 million in turnover, SEK 17.2 digital media. million in EBITA for 2015 factors in successful acquisitions.” “The digital shift has been a huge www.bonnier.pl challenge and forced us to think a step further. What are the digital needs of our target audience and what are they Among other pluses, the portal has a prepared to pay for?” says Patricia much-appreciated tool for comparing Deyna, CEO for Bonnier Business Polska. the country’s banks and their prod- “It was obvious early on that we ucts with one another, plus an affiliate couldn’t grow organically, so we started network that connects advertisers with to look for something new that could owners of websites. change our position in the Polish “With the acquisition of Bankier.pl, market.” we broadened our target audience so that, unlike earlier, it was not just B2B UP UNTIL 2015, the company had been but also B2C,” says Deyna. “This has built up with the business daily Puls meant a markedly better market position Biznesu at the core, with a print paper, with increased traffic to our portals.” Web portal and comprehensive event “The digital shift division. Then, in January 2015, the IN SEPTEMBER, THE COMPANY expanded forced us to think company acquired Bankier.pl, the even further with the acquisition of leading Polish finance and business Arslege.pl, an online test-prep service a step further.” portal geared to professionals – such for the bar exam and other high-status Patricia Deyna, CEO of as investors – as well as consumers. professional qualification tests. Bonnier Business Polska.

BONNIER ANNUAL REVIEW 2015 11 WITH CUSTOMERS IN MIND Where Consumers Are… and Where They Will Be. Consumers have more power than ever before when it comes to media. Check out eight trends that digital guru Sara Öhrvall has identified as transformative changes that are profoundly shaping how consumers interact with technology and media, which in turn are having a big effect on businesses.

ILLUSTRATION: JOHAN JARNESTAD

”SILENCIO 16”

1 Soccer on Your VR Headset 2 Paid by the Click 3 Subscriptions 2.0 Sports fans are in for a treat as VR c ompanies Affiliate marketing, where companies reward The success of streaming services such as are starting to tap into the virtual reality other companies and individuals for referring Netflix and Spotify show that consumers are potential. Market researcher Piper Jaffray new customers, is growing faster than ready to pay for subscriptions if the price and says the VR sports market has potential to traditional advertising. Business Insider says content are right for them. The fight for the grow to USD 4 billion in the next 10 years. approximately 15 percent of the digital media cash that consumers are willing to pay for Companies like NextVr and LiveLike VR are industry’s revenues now come from affiliate monthly entertainment is on. Expect to see already providing experiences for fans in the marketing. Social networks are rushing to take content bundles to capture this, from players U.S. and U.K., with new launches planned advantage, while some players are way ahead: like Facebook, Google and others. for 2016. Amazon already says 40 percent of its sales come from affiliate marketing.

4 A+ for Online Learning 6 The Message is the Medium Skills shortages are creating a market for 5 Everything is Social The volume of notifications users get is increasing online education like never before. And it’s It’s time to recognize that social is a behavior, exponentially. Inbox app Snowball says Android not just consumers who are driving the push. not a type of media. All media has a social users get more than 60 notifications a day. According to Forrester, 40 percent of Fortune element to it and content that might have Combined with technology improvements 500 companies use e-learning for competence stayed within its original publishing form now in notifications that let users interact more and development. And in April 2015, LinkedIn paid is spread on all social separating news from in new ways, notifications could become their USD 1.5 billion for Lynda.com, which offers noise. own media and framework, with apps becoming online courses for a monthly subscription. the tool for publishing them.

12 BONNIER ANNUAL REVIEW 2015 7 Content Worth 8 Internet of Paying For Things Expanding Contrary to what many believe, Revenues from connected services the willingness to pay for quality are expected to top USD 152 billion content is gradually increasing, by 2020, says Business Insider. albeit from low levels. And with the release of Google’s Surprisingly, it’s millennials Brillo and Apple’s Homekit who are driving this shift, smart home platforms, new and they place a premium companies are readily getting on self-directed learning and into the digital business and meaningful hobbies. According creating digital ecosystems. to Pew, 45 percent of 16- to Like Mercedes Benz teaming up 24-year-olds say they are willing with Nest so cars can automati- to pay for digital content from cally turn up the thermostat at media publishers. home during the evening commute.

BONNIER ANNUAL REVIEW 2015 13 Bonnier 2015 in short

Our Business Idea We create, select and refine a world of knowledge and stories.

Net Sales by Net Sales by Revenue Streams Country

6 % 7 % 5 % 10 % 7 % 7 % 35 % 23 % 7 % 56 %

12 % 24 %

ADS WHOLESALE SUBSCRIPTION SWEDEN FINLAND GERMANY RETAIL OTHER DENMARK U.S. NORWAY OTHER

Ambition

Key figures To be a leading and high-performing Employees: 8,397 digital media house.

Companies, We embrace technology. Bonnier has leading approximately: 160 positions in key media segments, but only about 20 percent of our revenues come from new sources. By 2017, 30 percent of our revenues should come from Countries: 15 sources sustainable over the long term. With this in mind, our strategy for the next years focuses Net Sales: on investments in technology, new services and 25,906 SEK M getting the right teams. We need to develop a culture of strong cooperation across brands, companies and business areas. If we do this, EBITA: combined with our journalistic and literary credibility, 1,008 SEK M the long-term thinking of our owners and the talent within Bonnier, we have every opportunity to succeed. WHAT HAPPENED IN OUR BUSINESS AREAS IN 2015.

A year of transformation with stable finances. Profits were in line with expectations, with significant investments in developing services and technology.

BOOKS. GROWTH BROADCASTING. MEDIA. BUSINESS MAGAZINES. TO BUSINESS. NEWS. BONNIER BUSINESS AREAS BOOKS. In a changing and tough global book and e-commerce world, Bonnier Books enjoyed stable and increasing business with good profitability and an impressive growth rate.

“A Year of Literary BOOKS’ GLOBAL PRESENCE. and Commercial Success.” FINLAND The year 2015 included big and small initiativ es. NORWAY Such as Bonnier Books having a stand at the UK SWEDEN children’s book fair in Shanghai for the first time. POLAND BookBeat, a digital book subscription service USA GERMANY soft-launched in November, was one example FRANCE of the powerful digital push during 2015. New U.S. self-publishing service Type & Tell also got a lot of attention. Bonnier Books acquired the Academic Bookstore chain in Finland.

The Swedish book market grew, the first time in a long while. For Bonnierförlagen, it was a successful year. Its authors won a majority of the country’s literature awards, including all three categories of the August Prize. Sales of digital AUSTRALIA audiobooks increased significantly, and it was the first year that more digital than physical titles were sold. Online retail Adlibris Group launched a number of growth initiatives, adding other pr oducts to its initial focus on books at Adlibris.com. The gardening product site odla.nu was acquired COMPANIES: ADLIBRIS GROUP, AKATEEMINEN KIRJAKAUPPA (ACADEMIC BOOKSTORE), and online cookware store köketsfavoriter.se was BONNIER BOOKS FINLAND, BONNIER MEDIA DEUTSCHLAND, BONNIER PUBLISHING, launched together with TV4. Adlibris also opened BONNIERFÖRLAGEN, BOOKBEAT, CAPPELEN DAMM (50 PERCENT) AND POCKET SHOP. a brick-and-mortar bookstore in Stockholm. It was a stable year for paperbook bookstore chain Pocket Shop with sales increasing in Sweden and Finland. NET SALES. NUMBERS. Bonnier Media Deutschland had another strong year, with three books topping the bestseller lists. A number of digital initiatives were started and 6,000 developed. The small publisher Lappan was 5,000 acquired, improving Carlsen Verlag’s already strong market position. 4,000 100 Bonnier Publishing in the U.K. had its best year 3,000 MILLION ever. Igloo Books, acquired in late 2014, had its all-time most profitable year. Adult fiction division 2,000 Bonnier Publishing Fiction had a successful start, BOOKS 1,000 and small genre publisher Totally Entwined was were sold altogether by acquired. The group had its first No. 1 book on the 2013 2014 2015 Bonnier’s book publishers in 2015. bestseller lists, only to hit the top spot again later in the year. Sales increased by 42 percent, and (SEK M) profits nearly doubled.

The Finnish economy continued to be tough, DID YOU KNOW? which meant a challenging year for Bonnier EBITA. Books Finland. Despite this, e-commerce for books grew and Adlibris strengthened its position. That the runaway hit 400 and surprise global For Norway’s Cappelen phenomenon Darm Damm, the year was stable, mit Charme by with successes such as 300 having the most titles on Giulia Enders, the bestseller lists and 200 Ullstein Buchverlag, winning the prestigious was No. 1 on the Brage Prize. Bookstore chain Tanum won a con- 100 bestseller list tract to run five new book- in Germany for stores at Oslo’s Gardemoen 2013 2014 2015 75 weeks. airport, with sales of NOK JACOB DALBORG, 200 million a year. Head of Business Area (SEK M)

16 BONNIER ANNUAL REVIEW 2015 PHOTO: PETER JÖNSSON 3 QUESTIONS.

Type & Tell. Breaking new ground in a changed book world. The book industry is in the middle How has it gone so far? of a structural shift. Digitalization, The reception has been very positive, internationalization, new business while at the same time we’re not models and increased c ompetition resting on our laurels since we have have changed the playing field. much to do. The fall was about getting Anyone can be a published author. the best users who are active to give Which is why Bonnier Books launched us feedback. Together with our users, the new self-publishing service we’re sharpening and improving our Type & Tell. Rebecka Leffler, head service all the time, and our hope is of business development, explains. that all authors should experience Why has a book publishing company Type & Tell as inspiring, modern, started up a service for people to fun and user-friendly. publish their own books? How will we see Type & Tell Thanks to digitalization, the develop? possibilities are greater than ever for We will be developing a function Rebecka Leffler, Head writing stories that reach an audience so that many people can work in of Business De velopment in the same channels as authors our tool with the same text at the for Type & tell. published by book publishers. Plus same time. We also want to authors can build relationships with improve writers’ exposure their readers and by themselves create by providing an author a bestseller, merely with marketing on page. But which other Facebook. Self-publishing is growing functions and in what as a market, and the power balance way we develop is within the industry has changed still up to analysis dramatically. For us, it’s always been and determined important to follow what’s happening by concept devel- in our industry, as well as to drive opment and user change. We need to broaden our tests. Within two business in order to be a relevant years we want to player, and we saw the need and an be the biggest opportunity to launch a professional self-publishing self-publishing service. With Type & service in Sweden. Tell, we can offer the knowledge and We also plan expertise that Bonnierförlagen has on expanding nurtured for generations and a service internationally. where authors can get a chance to influence the details that are most important for them.

PH OTO : C H Richard Johnson, R IS More CEO, Bonnier G L Publishing: O A Than G Books Nordic online retailer Adlibris expanded its prod uct range in 2015, adding crafts & DIY, stationery & office supplies and toys & kids' products to its original offering of books. Which meant 20,000 new No other Top 5 products available and U.K. publisher is 293,000 products sold since the June launch. It’s part anything like us. of the retailer’s strategy to give customers what they We are deliberately want at competitive prices. Most popular: crafts & DIY. different.”

BONNIER ANNUAL REVIEW 2015 17 BONNIER BUSINESS AREAS BROADCASTING. With digital records broken at TV4, a change of focus for C More and improved results for MTV, 2015 was a strong year for the Broadcasting business area.

“Year of the Digital.” BROADCASTING’S PRESENCE IN THE NORDIC REGION. TV4 celebrated its 25th anniversary, a year of successes such as all-time highs for ROVANIEMI digital consumption; even linear TV LULEÅ was the second best ever. Expanding KEMI FINLAND the target audience from 12- to NORWAY OULU 59-year-olds to 15- to 64-year-olds UK SWEDEN along with a comprehensive push UMEÅ ÖSTERSUND POLAND for local Swedish content within all KOKKOLA KUOPIO GERMANY genres, from news to sports, entertain- FRANCESUNDSVALL VAASA ment to drama, were two reasons behind the JOENSUU JYVÄSKYLÄ success. The channel inaugurated an up-to-the- TAMPERE minute news studio and launched a number of new PORI MIKKELI FALUN LAHTI initiatives, including multi-channel talent network LAPPEENRANTA ENT, advertising platform Woo and e-commerce TURKU HELSINKI site Kökets favoriter (Kitchen Favorites. VÄSTERÅS UPPSALA KARLSTAD STOCKHOLM Swedish news production company Nyhets SKÖVDE bolaget, after extensive efficiency measures, ÖREBRO NORRKÖPING turned a corner from losses to profits, and shifted GÖTEBORG focus to journalism for any platform, based on JÖNKÖPING news content created for TV4. During the year, HALMSTAD VÄXJÖ an increase in new customers and business took off as well. COPENHAGEN MALMÖ The year 2015 was marked by increased cooperation, digital focus and large technology investments, including for development of COMPANIES: TV4 GROUP, MTV, NYHETSBOLAGET, C MORE. an improved OTT platform. The digital ventures and investments in local content have been very suc cessful – and all operations within the busines s area had better results than the previous year. NET SALES.* NUMBERS.

C More changed its strategic focus, 8,000 becoming digital first, and the Danish mini-pay channels and C Sport Norge in Norway 6,000 were sold as part of the new 3 strategy. The business area’s No. video-on-demand services MTV.fi is the third-biggest biggest 4,000 Filmnet and C Sports were online portal in Finland. consolidated under the subscription-video-on-demand 2,000 service C More, and digital income increased over 2013 2014 2015 70 percent during the year. (SEK M) The macroeconomic climate in Finland continued to be a challenge during 2015, but MTV’s EBITA.* results improved, thanks to structural changes in the business. The radio operations were sold 700 to the Bauer Media Group 600 in order to focus on core busines s. News 500 production for MTV was put under the 400 DID YOU KNOW? newly established sister company 300 During 2015, C More’s Mediahub. The 200 OTT revenues increased recently launched 74 percent compared to Media for Equity fund 100 was a success, fully the previous year. subscribed by the end CASTEN ALMQVIST, 2013 2014 2015 of the year. Head of Business Area (SEK M)

* INCREASES AND DECREASES IN EBITA ARE PRIMARILY DUE TO C MORE NOT BEING PART OF THE BUSINESS AREA IN 2014. 18 BONNIER ANNUAL REVIEW 2015 PHOTO: PETER JÖNSSON 3 QUESTIONS.

Talent Hunt. Boosting upcoming stars in new platforms. ENT is a multi-channel network that got the courage and self-confidence What are your successes so far? offers the expertise of Sweden’s to take that creativity to new arenas. We had a good start in fall 2015. As of No. 1 commercial TV station, TV4, In order to continue to develop our the end of 2015, there are 20 talents on to top content creators on digital position, it’s important to rejuvenate board, which was our goal. Our three platforms, helping them grow and our audience, and we need to meet biggest recruits are “DeVetDu” (you develop in terms of both content and younger viewers in new arenas under know it) and “SpråkFörAlla” (language business. Maria Wiss, head of ENT, new terms. for everyone) within humor/enter- explains. What kinds of stars is ENT looking for? tainment and Alexandra Bring within fitness/lifestyle. All three are incredibly Why has TV4 started a multi-channel We’re looking for talents who are strong influencers among younger network? passionate about what they create. target audiences. We’re excited that When TV4 started, we stood out in the They don’t have to have a big following they’ve chosen to work with us. Even Swedish TV market as a challenger or be extremely well established, though we’ve only been up and running with a new tone and new content for and they don’t have to be only on a few months, we’ve managed to TV viewers. With ENT, we want to YouTube. We contact people we see position ourselves in the market and continue to revolutionize s torytelling with something extra and the drive to attract gifted and strong talents. Ad- and communication. We have unique take the next step in their careers. We vertisers have also been quite interest- experience and competence in creat also have many talents who contact ed, and we’ve already carried out our ing stunning video and content that us directly because they want us as a first campaigns. We’ve got high affects viewers, now we’ve partner. expectations and we’re e xcited for 2016 and beyond!

The ENT team. Back row, from left to right: Adam Navér, Erik Sidung, Edward Dahlbäck Rörström. Front row: Janina Witkowski, Maria Wiss, Linn Weilar, Ella Grundel, Pål Ströbaek, David Larsson. PHOTO: PETER JÖNSSON

Linear TV viewing remained exceptionally high in 2015, at three Reaching All Sweden hours a day... on Facebook ... There are clear signs that linear viewing The various Facebook pages of TV4 together will be supplemented by new ways of reach 1.1 million Swedes directly. But if distribution, especially OTT services, they interact with the content all their to dis tribute content directly to consumers. friends see, essentially the entire Swedish These two facts together with MTV’s Jarkko Nordlund, population comes in contact with TV4’s unique position in Finland give me strong CEO for MTV content via Facebook. confidence in our future.”

BONNIER ANNUAL REVIEW 2015 19 BONNIER BUSINESS AREAS BUSINESS TO BUSINESS. A year of growth for Bonnier Business to Business was marked by major acquisitions as well as organic growth, with record profits.

“Record Profits.” BUSINESS TO BUSINESS’ PRESENCE IN EUROPE. 2015 was the sixth consecutive year with improved profitability for Bonnier Business to Business, and the business reached a new record profit. The business area experienced good revenue growth mainly due to acquisitions, but was able to show organic growth as well. The year 2015 was about continuing the digital transformation, broadening the niche business portfolio and climbing the value FINLAND chain in terms of product and advertising offerings. SWEDEN NORWAY ESTONIA Throughout the year, Bonnier Business to LITHUANIA Business had a strong focus on acquiring new DENMARK businesses and closed fewer than six transactions. POLAND In January one of Poland’s main investment news GERMANY websites, Bankier.pl, was acquired and integrated into Bonnier Business Polska. The acquisition has SLOVENIA allowed Bonnier to establish itself as one of the main players on the Polish business and finance news market. Later during 2015, Bonnier Business Polska also acquired a majority stake in niche e-learning business Prawomaniacy.

In February, a majority stake of Deutsche Wirtschafts Nachrichten (DWN) was acquired.

DWN is the fastest-growing online business news COMPANIES: BONNIER BUSINESS FORUM, BONNIER BUSINESS MEDIA, BONNIER BUSINESS POLSKA, BØRSEN, publisher in Germany and currently reaches more CLIO ONLINE, DEUTSCHE WIRSCHAFTS NACHRICHTEN, FINANCE, VERSLO ŽINIOS AND ÄRIPÄEV. than 2 million unique users each month. MAJORITY SHARES IN RUSSIAN OPERATIONS WERE SOLD AT THE END OF 2015. In the end of March, Bonnier made its comeback in learning materials by acquiring a majority stake in Denmark’s leading digital learning mat erials publisher, Clio Online. The company has played a major role in digitizing Danish elementary schools, NET SALES. NUMBERS. and Bonnier Business to Business is aiming to export that success to new markets together with 1,250 the founders of Clio Online.

1,000 Following the summer holidays, Bonnier Business Media Sweden acquired sustainability publisher Miljöaktuellt from IDG. The deal allows Bonnier 750 to take a holistic grip on the environment and sustainability niche and significantly improve the 500 1.8 product offering on the Swedish market. The final acquisition took place inNo vember 250 BILLION when a majority stake in Sjöströms Nordic was acquired. Sjöströms Nordic (now Bonnier 2013 2014 2015 PAGE VIEWS Pharma Insights) is a digital company serving the were generated by the companies pharmaceutical industry with pricing tools and (SEK M) within the business area in 2015. relevant databases. Due to a Russian ban on foreign ownership exceeding 20 percent of media assets, Bonnier had EBITA. to divest large parts of its Russian operations in December 2015. It still remains in Russia, but with DID YOU KNOW? smaller shares of ownership. 175

150 Bonnier Business to ... that 90 percent of Danish Business also signed 125 public schools use one or a contract to divest Børsen Group to 100 more products from Clio JP/Politikens Hus Online. in Denmark at the 75 beginning of January 50 2016, providing Bonnier with funds 25 to accelerate the digital transformation through ANDERS ERIKSSON, 2013 2014 2015 new acquisitions. Head of Business Area (SEK M)

20 BONNIER ANNUAL REVIEW 2015 PHOTO: KAI MUELLER 3 QUESTIONS.

Smart Business. Unique profile and lean organization spell success for No. 2 German business news website.

In February 2015, Bonnier Business fun-to-read stories. Therefore, we been growing at a rapid pace, so we to Business acquired a majority share use a simple language without any are very optimistic we can become in top business website Deutsche PR, with no addiction to speed. Today, the market leader in the near future. Wirtschafts Nachrichten (DWN). DWN is the No. 2 business news web- Simultaneously, we want to diversify Founded in 2012 by Michael Maier and site in all German-speaking countries. our revenue streams: We will further Christoph Hermann, the website has A major part of our success comes grow our existing revenues in adver- a readership that has grown to nearly from Facebook, where we reach even tising sales and content syndication, 3 million unique visitors per month as more interactions within the business while also pushing into paid products of the end of 2015. Hermann explains audience than all other media in and events. Together with Bonnier its success. Germany. Business to Business, we are about to launch and acquire further news sites What makes DWN special? What’s the key to your to become a leading B2B media player DWN is all about a unique, high- financial success? in Germany. quality, journalistic profile: DWN has been profitable from day We consider business, politics and one, because our stories, analysis and the social implications as a holistic commentary are being reused several playing field of news. Spewing ever times for corporate publishing clients more content is not a strategy. We and studies. We have also built an focus on fewer, more outspoken and in-house advertising-sales team and have been working continuously with all major business advertisers – from banking and IT to automotive – in recent years. DWN still has a very lean structure, with a core in media organization – an editorial and sales team – in-house, but all other tasks outsourced. What do you see for the future for DWN? We want to be the No. 1 business news site in Germany. DWN’s traffic numbers have

Michael Maier and Christoph Hermann at Deutsche Wirtschafts Nachrichten.

PH OTO : R U N E +55% T

Lise Hjertaas, CEO Dagens Medisin Norway Dagens Impressive Growth Medisin ... with an EBITA margin of 32 % in 2015. Bonnier Business to Business saw a big With high focus on integrity and independent jump in digital advertising revenues, which continues to deliver journalism. We create good content for our grew by 55 percent for the entire business readers and also have platforms where area during 2015. strong results ... advertisers see value for money.”

BONNIER ANNUAL REVIEW 2015 21 BONNIER BUSINESS AREAS GROWTH MEDIA. The year 2015 was packed with new investments, organic growth in existing companies and one major turnaround.

“Intensive Year.” GROWTH MEDIA’S GLOBAL PRESENCE. The Bonnier Growth Media business area is focused on digital growth companies, with a portfolio of companies with combined turnover of more than SEK 2 billion. The business area’s FINLAND portfolio contains majority-owned companies NORWAY such as Svensk Filmindustri, Spoon, Evoke SWEDEN Gaming and Tailsweep, as well as a venture DENMARK division that invests in fast-growing and U.K. media-related start-ups, such as Refunder, CANADA United Screens, Acast and Resolution Games.

U.S. (SAN FRANCISCO) MALTA The year was intensive for the business area, U.S. with investments in a range of new businesses, (NEW YORK) as well as organic growth within the companies. Svensk Filmindustri had a significant year of realignment, going from being dominated by physical DVD sales to a much more international studio business with increased focus on production of high-quality film and TV, as well as digital channels in upgraded distribution operations. Svensk Filmindustri COMPANIES: EVOKE GAMING, KIT, MAG+, SAGO SAGO, SF ANYTIME, SPOON, SVENSK FILMINDUSTRI, TAILSWEEP, TOCA BOCA, TRE VÄNNER. BONNIER GROWTH MEDIA ALSO HAS MINORITY SHARES IN ended the year with production ABIOS GAMING, ACAST, OH MY!, REFUNDER, RESOLUTION GAMES AND UNITED SCREENS. of the film A Man Called Ove, which broke Swedish audience cinema attendance records during the last week of 2015.

Spoon became even more digit ally NET SALES. NUMBERS. focused, de veloping its cus tomer offering with specialist digital competence as well as expanding 2,500 geographically. During the year, with investments in agencies OhMy! and InFunnel in 2,000 MILLION Sweden as well as Teft in Norway, Spoon contin- 1.6 ued to expand its network as a “brand engineer.” 1,500 ACTIVE USERS

KIT was launched during the 1,000 in December 2015, a year and during its first months, record for toddler app established itself as a new media 500 developer Sago Sago. pioneer, with a focus on its technology platform and high-quality 2013 2014 2015 content, where mobile and (SEK M) social media int ersect.

United Screens doubled DID YOU KNOW? its revenue and has more PERCENT than 200 million views per REVENUE month. Toca Boca and Sago GROWTH. … the new SF Kids Play has Sago have topped the App hundreds of hours of film Store list with every app and series, everything from launch during the year, classics to exciting new while also building new specialist teams for releases. All in a safe, fun extending their brands. and child-friendly app for 50 % computer, smartphone One of and tablets. the new investments was podcast network 21 % Acast, which expanded its 9 % operations in Sweden ULRIKA SAXON, and the U.K. to include Head of Business Area 2013 2014 2015 the U.S. as well.

22 BONNIER ANNUAL REVIEW 2015 PHOTO: PETER JÖNSSON 3 QUESTIONS.

Pod Platform. Challenging the status quo. Acast launched in April, Bonnier What makes Acast special? sing in podcasts and the world’s first invested in May 2015, and since Acast is the world’s most advanced dynamic sponsorships in podcasts and Bonnier invested it has grown from podcasting platform. We provide the world’s first programmatic buying 12 million monthly listenings to 24 premium hosting, distribution and in podcasts. Advertising is currently million. The platform launched in the monetization of podcasts. Acast's plat- our only source of evenue, so it is U.S. in late 2015, quickly becoming form also provides content creators obviously vital. Acast’s biggest market with content with the unique ability to enrich the What’s your biggest challenge partners such as Buzzfeed and the podcast experience with pictures, links as you go international? Financial Times. Acast is currently and videos. operational in Sweden, the U.K. and Finding the right talent is key to us, but the U.S. and employs 40 people. What’s the business model and what so far we have been fortunate in that Måns Ulvestam, CEO for podcasting role does advertising play? area. We require basically three types of talent to scale Acast. First of all we platform Acast. Acast is a curated service, so we need developers. Then we also need sign on podcasting content and then senior content people who can gain the sell ads toward that content. We trust of both independent podcasters are currently challenging the status and media houses. Finally, we need quo of podcasting, i.e., hard-coded salespeople. However, I would say our sponsorship reads, by giving adverti- biggest challenge is making sure all sers true metrics and groundbr eaking our internal systems scale as fast as ad formats. For instance, Acast de- our business requires. livers the world’s first dynamic adverti-

Måns Ulvestam, CEO for podcasting platform Acast.

The Acast platform offers dynamic advertising for any screen, smartphone, tablet or computer.

ILLUSTRATION: RESOLUTION GAMES PH OTO : L IN Linda Öhrn D A

Lernström, A L F head of features V E at KIT: G R

E N

Creating successful content today for a Want to show someone what virtual reality (VR) has Virtual Reality to offer? Show them a VR game! Stockholm-based mobile generation ... virtual reality game developer Resolution Games ... isn’t just about good instincts. You need to Becomes Reality develops social, accessible games for a global be curious about new technologies and work market. First out during 2016: a VR fishing game. in a data-driven way.”

BONNIER ANNUAL REVIEW 2015 23 BONNIER BUSINESS AREAS MAGAZINES. The magazine industry continues to face significant challenges, but the Magazines business area made heavy investments in the digital and adjacent areas in 2015.

MAGAZINES’ PRESENCE IN EUROPE AND THE U.S. “Strong Digital Growth.”

The magazine business STOCKHOLM area consists of Bonnier OSLO Publications with head- HELSINKI quarters in Denmark and COPENHAGEN subsidiaries in Norway, Finland and Sweden; NEWPORT, R.I. Bonnier Tidskrifter in NEW YORK CITY

Sweden; and Bonnier IRVINE, CA Corporation in the U.S. WINTER PARK, FL Among the largest brands are Illustreret Videnskab (Science Illustrated), Allt om Mat (All About Food) and Outdoor Life.

The print business continued to decline but many of the titles still had a strong position, gene- rating significantr esults COMPANIES: BONNIER CORPORATION, BONNIER PUBLICATIONS, BONNIER TIDSKRIFTER. during the year. The group achieved strong growth in digital sales driven by social media NET SALES. traffic and newf ormats NUMBERS. and products. There was also good growth 5,000 in the adjacent business of licensing, events and 27 MILLION 4,000 content marketing. is the total number of fans and followers of 3,000 Bonnier Corporation’s brands across social New digital offers and channels, including Facebook, Twitter, products were introduced Instagram, Pinterest, Tumblr, Periscope 2,000 to print subscribers in and Google+. order to secure the most important revenue stream 1,000 in the group. 2013 2014 2015 A number of efficiency (SEK M) and productivity programs have led to significant cost savings without compromising quality. DID YOU KNOW? EBITA. Finally, in 2015 long-time Knives are the most head of the Magazines 300 business area Michael important kitchen tool, Cordsen, also CEO of 250 pepper the most Bonnier Public ations, important spice announced his reti- 200 and butter the most rement in Jan. 2016. Jesper Buchvald 150 important ingredient, took over his role 100 according to a survey as CEO and I took of Swedish food over as head of the 50 business area. magazine Allt om Mat’s 2013 2014 2015 462,000 readers. LARS DAHMÉN, Head of Business Area, (SEK M) as of February 2016

24 BONNIER ANNUAL REVIEW 2015 PHOTO: STEEN EVALD 3 QUESTIONS. House & Home. Making the most of a segment. Bonnier Publications is the biggest Advertising finances both your their lives in their homes. If you have the and most profitable media player magazines. How is that working in readers, advertising money will follow. within the house & home segment in today’s media market? Revenues from print advertising in Scandinavia, with magazines like Do It Erik Rimmer: 2015 has not been an Vi i Villa in Sweden increased by 30 % Yourself, homeowner title Vi i Villa annus horribilis – on the contrary! the last year. and upscale interior design magazine We increased 20 % on advertising in What are the digital possibilities? Bo Bedre. Erik Rimmer, editor-in- print magazines and online together ER: Last April, we launched our first chief, Bo Bedre, Denmark, and Helena compared with 2014. Rumors of print English-language magazine, Nordic la Corte, CEO, Vi i Villa, Sweden, talk media's death in our segment are Living by Bo Bedre. If you want to have a about challenges and successes. exaggerated. Let’s talk instead about business in the interior design area, you what we want to tell readers, have to be international. Language is just regardless of platform. a small hurdle – we have the stories and Helena la Corte: It's all about pictures that can inspire gl obally. And putting readers first! Invite and give the easiest way will be digital, combined them space to tell their stories about with a high-quality print magazine. HLC: Just as in print, it’s important to get engagement from visitors by creating interesting and valuable content. But also to get paid for it. For example, Idényt (Vi i Villa in Denmark) has succeeded in building a very profitable digital business. Time-to-market is everything. We have to listen to our readers and adjust to and develop what they ask for – and fast. Where can we be better? HLC: Cooperation among brands within the house & home segment within Bonnier. We have so many readers interested in good content within the segment, regardless of brand. For example, Do it Yourself has unique material that can be used in Vi i Villa, and Vi i Villa can help Do It Yourself get more subscriptions.

Erik Rimmer, editor-in-chief at Bo Bedre, and Helena la Corte, CEO at Vi i Villa. PHOTO: COURTESY FRIDA BOISEN Frida Boisen on how to succeed in social media. Boisen is head of digital media for Bonnier Tidskrifter.

Riding the Custom Wave Dare to The Bonnier Motorcycle Group in the U.S., with 11 brands and 8.3 million motorcycle, UTV and ATV give of yourself. enthusiast readers and viewers, opened its own in-house marketing agency, QuickShift, in 2015. With Be generous and custom content more popular than ever, pr oviding innovative and unique customer mark eting has been positive ... a smart move, and client demand has been big. ... and praise colleagues who’ve done something great. Share what you love. Write from the heart”

BONNIER ANNUAL REVIEW 2015 25 BONNIER BUSINESS AREAS NEWS. Digital is up and earnings improved for the Bonnier News business area, despite tough times for print ad revenues and circulations.

“Profits Up.” NEWS’ PRESENCE IN SWEDEN. Bonnier News strengthened its profitabilityin 2015, despite declining circulations and lower print ad revenues. Profits increased from SEK 332 million to SEK 363 million, even with results affected by SEK 80 million in restructuring costs. STOCKHOLM Significant investments in digital development as well as optimization of the print newspaper business continued. Common organizations for circulation as well as advertising were created for Swedish news dailies Dagens Nyheter and BORÅS Expressen and business daily Dagens industri. GÖTEBORG Dagens Nyheter’s reader revenues increased for the sixth year in a row and profits amounted to SEK 122 million. The number of digital subscriptions HELSINGBORG more than doubled. The paper and its empl oyees LUND won a number of awards during the year, in- MALMÖ cluding the Swedish Grand Prize for Journalism. Dagens Nyheter still faced dropping print ad revenues, and digital ad sales far from compensated for the decline. A new payment system for online content was developed in partnership with leading payment service Klarna, and a new digital product offering was launched.

The digital transformation in the ad sales COMPANIES: DAGENS INDUSTRI, DAGENS NYHETER, EXPRESSEN, HD–SYDSVENSKAN, business continued in full force at Expressen. BOLD PRINTING GROUP Total ad sales increased 3 percent during the year. Digital ad sales increased 30 percent, making up 56 percent of total ad sales. Digital trafficincr eased substantially, with page visits up 17 percent for desktop and 91 percent for mobile, resulting in NET SALES. NUMBERS. increased market shares. Large investments in video and a new robust strategy for Expressen TV were initiated. Profits for the year amounted 5,000 to SEK 88 million. 4,000 Dagens industri’s profit margin remains strong and profits were SEK 136 million. The event business 3,000 continued to grow with revenues of SEK 56 million. Even mobile revenues showed strong growth. 2,000 A new site, Di Digital, was started, with a focus on the digital transformation and entrepreneurship. 1,000 213,876 of Dagens Nyheter’s subscribers have It was the first full year for the combined group 2013 2014 2015 activated digital accounts.* HD-Sydsvenskan in 2015, and profits were SEK 48 million, which was better than the acquisition (SEK M) *AS OF JANUARY 2016 budget. The year was marked by the hard work of integrating operations for the two papers, while continuing to focus on retaining the individual DID YOU KNOW? identities of the two brands. EBITA. After many years in the red, printer Expressen has partnerships Bold Stockholm turned a 400 with Buzzfeed, CNN, Apple, corner in 2015 with a Spotify, Google profit of SEK 13 million. Declining revenues 300 and Facebook. from internal newspaper customers were successfully 200 compensated for by external customers, 100 while the entire production system was made more GUNILLA HERLITZ, efficient and capacity Head of Business Area 2013 2014 2015 (until summer 2016) utilization increased. (SEK M)

26 BONNIER ANNUAL REVIEW 2015 PHOTO: PETER JÖNSSON 3 QUESTIONS.

Data-Driven. Using customer behavior to make decisions.

What customers – readers and advertis target audiences. And we are creating new ers – want and think are key to the daily products based on real target audiences newspapers that make up the business that marry interests to content. area. An insight-driven approach is the Digital dashboards are an important driving force. Charlotte Svensson, CDO element of this approach. How do you use and CIO for Bonnier News, explains why them? and how. Everyone within the organization has What is the thinking behind an insight- information about our traffic, and our driven approach to working, and what are customers’ interests are key to our the results? success. We measure everything from Our way of working is data-driven, which quality of content to traffic patterns, means data is available for everyone within interest areas to conversion rates. We A/B the organization. We follow our perfor- test what we do. A test-driven method of mance in real time, as well as various working allows us to focus consistently trends and patterns as they develop. We on what really reaches our readers within use the information we uncover in order to each brand. be proactive and to apply the correct focus on all the material we produce. The goal is What are your biggest successes? to be consistently relevant, to both readers Increased digital sales, in terms of both and advertisers. Traffic on our digital digital-ad revenues and the number of channels is increasing because we are digital subscribers. Furthermore, during able to adapt more quickly and produce the past year we’ve seen strong growth content based on actual behavior. Readers’ in traffic on all channels. We’ve also see behavior is part of what informs our deci- significantly less churn, while we’ve made sion-making process; with this information sales more efficient anddecr eased the we can build precise and relevant commu- number of customer-service requests. nication, such as article recommenda- tion based on actual interest and time of day. We are increasing the number of digital subscribers, with well- defined offers based on behavior. Using good customer data, we are also improving accuracy for advertisers, enabling them to reach specific

Charlotte Svensson, CDO and CIO for Bonnier News. PHOTO: HUSSEIN EL-ALAWI PHOTO: COURTESY LOTTA EDLING Lotta Edling, newly appointed Pamela editor-in-chief for Dagens industri, Abeja, from which turned 40. Kampala, Uganda, via from #föreflykten With on Instagram. a print edition that continues to be strong and #BeforeFleeing an increase in The southern Swedish daily Sydsvenskan’s noted portrait series #föreflykten (Before Fleeing) shows reading... the people behind the refugee numbers, and how ... in our digital channels, we’re well life looked before it shattered. The series can be equipped to create Dagens industri’s followed on sydsvenskan.se and in social media. future news story.”

BONNIER ANNUAL REVIEW 2015 27 FINANCIAL RESULTS 2015.

Profitability on Track While Transforming. Bonnier AB’s operating profit (EBITA) for 2015 was SEK 1.01 billion* compared to SEK 1.10 billion the previous year, which was an EBITA margin of 3.9 percent (4.7 percent). The group’s revenues amounted to SEK 25.9 billion (SEK 23.7 billion).

ADJUSTED FOR C MORE’S performance, BOOKS’ REVENUES INCREASED, with profit records with an EBITA of SEK which halved losses compared to the an EBITA of SEK 422 million (437). 171 million (132). The year was marked previous year, Bonnier AB’s EBITA for Bonnierförlagen in Sweden had a very by a strong focus on the digital trans- 2015 was more than SEK 100 million strong year with improved profitability. formation of its core business and an better than for 2014.* Bonnier’s German book publishing increased pace of acquisitions. Among Says Bonnier AB’s CEO Tomas group, the business area’s biggest, these were Poland’s biggest business Franzén: again showed solid results. Bonnier site, Bankier.pl, one of Germany’s “I’m very pleased that during 2015 Publishing, through organic growth leading business news sites, DWN, as we achieved operating profits that were as well as an ambitious acquisition well as Clio Online, Denmark’s leading in line with what we had planned, agenda, grew into the U.K.’s fourth company for digital learning materials while at the same time we made signif- largest book publisher, with steadily for elementary schools. During 2016, icant investments in all our business improving profitability. In a still a number of key initiatives are planned areas. Behind the stable profits lies tough Finnish book market, Bonnier for expansion into new markets, as well intensive work in developing services increased its position in retail sales, as continued acquisitions. and products, so that we can meet our partially via strong growth for online strategy goal of 50 percent of our retailer Adlibris, partially with the GROWTH MEDIA, WITH ITS FOCUS on revenues coming from new sources, acquisition of the Academic Bookstore digital companies with global potential, primarily digital, by the year 2020. chain, with its base in Helsinki. During in 2015 invested in podcasting plat- During 2015-2018, we will save SEK 2015, the new digital book service form Acast and virtual reality game 2 billion. In part, through cost-savings with a mobile focus, BookBeat, was studio Resolution Games. Ownership in our traditional businesses, in part developed and launched in beta; it shares were increased in cash-back site by efficiency measures and lowered will be fully launched on the market Refunder and multi-channel network purchasing costs. The SEK 2 billion in 2016. United Screens. Stockholm-based will be directly reinvested in services content agency Spoon made several in- and products that increase our digital BROADCASTING’S EBITA was SEK 417 vestments during the year, with the goal revenues, primarily from the end million (589*). The Swedish TV4 of broadening its offer digitally and geo- customer. Group is strong and continues to invest graphically. Kid’s app developer Toca For 2015, I would especially like to heavily in content and technology. Boca, Evoke Gaming, TV production mention growth in our smallest business The successful focus on local content company FLX and the newly started area, Business to Business, with its spurred an increase in linear viewing media company KIT are among other continually improved margins and a and digital consumption nearly wholly or partially owned growth com- track record of successful acquisitions. doubled, resulting in both national panies that are part of the business area. From being a business area dominated and digital sales records. C More, The EBITA was SEK -127 million (-189). just a few years ago by traditional print through business deals in Norway The improved results are due primarily business dailies, a majority of revenues and Denmark, reversed trends and by Svensk Filmindustri’s turnaround to now come from digital business media showed improved results. C More will profitability, from a clear loss in 2014. and services. develop further from a Nordic pay Svensk Filmindustri has, since its merg- Just days after 2015 became 2016, network into a digital-first company, er with Swedish production company we announced an agreement to sell the and continue to invest in content and Tre Vänner in 2013, focused on devel- Danish business daily Børsen**. It’s a technology. News production company oping its production, illustrated by the good deal for Bonnier, showing we are Nyhetsbolaget achieved a new balance, success of the filmEn man som heter prepared to make the right business showing positive numbers and working Ove (a man called Ove), seen by over deals in the right circumstances. The further at creating profitability through 1.5 million Swedes in the cinema. sale will provide money for continued new customers and an increased acquisitions of purely digital businesses. digital focus. In a persisting tough MAGAZINE’S EBITA was SEK 250 Together, these measures – cost- macroeconomic climate in Finland, million (310). The lower results were savings, investments, acquisitions and MTV improved its results through due in large part to changes in Danish divestments – contribute to our move structural changes and cost-savings. value-added tax rules. Copenhagen-based toward more sustainable revenues and The network sold its radio operations, Bonnier Publications’ home segment a stronger Bonnier over the long term. Radio Nova, to Bauer Media in 2015. titles, Bo Bedre (better living) and In the upcoming years, our new services Vi i Villa (living in houses), had mark- in digital books and video, among BUSINESS TO BUSINESS CONTINUED its edly improved results, and the entire others, will reach the market. We expect strong growth curve during 2015. The business area increased digital reveneus that 2016 will be a year where our digi- business area improved its results for as well as revenues from adjacent tal revenues show powerful growth.” the seventh year in a row and broke new services. Accelerated growth from these

28 BONNIER ANNUAL REVIEW 2015

revenue sources will continue to be in NET SALES BY BUSINESS AREA. [SEK M] 2015 2014 in % focus. Lars Dahmén became the new CEO for Bonnier Tidskrifter in Sweden Books 6,969 6,472 497 7.7 % in August, and took over as head of the Broadcasting 7,738 6,448 1290 20.0 % business area in early 2016. In 2015, Business to Business 1,319 1,142 177 15.5 % Growth Media 2,159 1,962 197 10.0 % Eric Zinczenko took over as CEO for Magazines 4,045 3,944 101 2.6 % Bonnier Corporation in the U.S. and at News 4,675 4,705 –30 –0.6 % the start of 2016, Jesper Buchvald took Other –999 –971 –28 n/a over as CEO for Bonnier Publications. Bonnier AB total 25,906 23,702 2,204 9.3 %

NEWS DELIVERED VERY STRONG results for 2015, despite continued decreases EBITA BY BUSINESS AREA. [SEK M] in print ad sales and falling circulations. 2015 2014 in % The EBITA increased to SEK 363 million Books 422 437 –15 –3.4 % (332) at the same time the business Broadcasting 417 589 –172 –29.2 % area increased investments in digital Business to Business 171 132 39 29.5 % development by SEK 125 million over the Growth Media –127 –189 62 32.8 % Magazines 250 310 –60 –19.4 % previous year, as well as made continued News 363 332 31 9.3 % investments in new competences. Other –488 –508 20 n/a Swedish news daily Dagens Nyheter Bonnier AB total 1,008 1,103 –95 –8.6 % had record reader income for the sixth year in a row. Business daily Dagens industri successfully grew its event EBITA MARGIN BY BUSINESS AREA. business and increased total income. The 2015 2014 in %

digital transformation of afternoon daily Books 6.1 % 6.7 % –0.6 % –9.0 % Expressen’s ad business continued in Broadcasting 5.4 % 9.1 % –3,7 % –40.7 % full force and resulted in an increase for Business to Business 13.0 % 11.5 % 1.5 % 13.0 % total ad sales. HD-Sydsvenskan’s efforts Growth Media –5.9 % –9.6 % –3.7 % –38.5 % in integrating the operations of the two Magazines 6.2 % 7.8 % –1.6 % –20.5 % News 7.8 % 7.1 % 0.7 % 9.9 % newspapers in southern Sweden resulted Other n/a n/a n/a n/a in profits that exceeded the prognosis of the acquisition budget. After many years Bonnier AB total 3.9% 4.7 % –0.8 % –17.0 % of negative results, printer group Bold made a turnaround, showing a profit with EARNINGS. [SEK M] new income from external customers and 2015 2014 in % increased capacity utilization. Sum Net sales 25,906 23,702 2,204 9.3 % EBITA 1,008 1,103 –95 –8.6 % OTHER INCLUDES COMMON group EBIT 939 892 47 5.3 % activities and functions. The effect on Net financial items –230 –365 135 –37.0 % EBITA from these activities was SEK Earnings before tax 709 527 182 34.5 % -488 million (-508). Loss/Profit for the year 43 310 –267 –86.1 %

GEARING RATIO (net debt in relation to OPERATING CAPITAL. [SEK M] shareholder’s equity) was 1.05 (0.82). 2015 2014 The group’s available liquidity, in the Tangible & intangible fixed assets(excl. Goodwill) 3,730 3,043 form of liquid assets and undrawn credit Working Capital –1,317 –1,400 reserves, continues to be very good and Taxes 1,687 2,154 as of the end of December 2015, amounted Other financial assets 579 389 to SEK 6.3 billion. Goodwill 8,245 7,816 Operating capital 12,924 12,002

* C MORE WAS NOT PART OF BONNIER AB IN 2014. Net Debt 6,613 5,395 ** THE AGREEMENT IS SUBJECT TO APPROVAL BY DANISH Shareholder's equity and minority interest 6,311 6,607 COMPETITION AUTHORITIES,A PROCESS EXPECTED TO TAKE APPROXIMATELY SIX MONTHS. Financing of operating capital 12,924 12,002

BONNIER ANNUAL REVIEW 2015 29 Some 130 years ago, book publisher Albert Bonniers Förlag supported August Strindberg's fight for free speech in his books. Free speech remains a core value for Bonnier. BUST OF STRINDBERG AT BONNIERFÖRLAGEN'S OFFICES. SON JÖNS

PETER

PHOTO 30 BONNIER ANNUAL REVIEW 2015 Moluptam eaqui bea perum et officip idigendam qui ut que et pariate quiam qui omnis desecta turerumquas assequid quissincto beaquatur? As as et, quos ipsam illesteMEDIA strunt enia int qui nia elibusIS que OURexplam facesen. BUSINESSLorem From Bonnier’s beginnings ipsumin a bookstall XXX in 1804, storytelling and journalism remainXXXXXX the heart of the business as we transform into a leading XXXXXXdigital media group.

BONNIER ANNUAL REVIEW 2015 31 31 OUR CORE VALUES

What we want.

e have several goals by never choosing short-term profits over as Bonnier’s owners. long-term strength. One is that our business should be DURING 2015, we made big investments financially success- in the future, not least in technology ful. But that goal is development. To ensure Bonnier’s future, balanced with the we are even considering acquisitions and Widea of what our companies should be. divestments that complement the trans- Bonnier’s business has roots in book formation we are undertaking within our publishing and journalism. This has companies. The first week of 2016, the meant our companies play a role in the sale of Denmark’s leading business daily, development of literature, entertain- Børsen, was announced. The paper is ment, information and public opinion in a successful business, which has contin- those countries where we have opera- ually delivered improved earnings and is tions. From our beginning, entrepreneur- the unchallenged No. 1 Danish business ship and building businesses have been daily. Despite this, we decided that selling as much a natural part of Bonnier as our the paper would strengthen Bonnier, literary and journalistic expertise. by creating resources for growth in more digital-only businesses. OUR VISION FOR THE FUTURE continues to focus on both commercial success DURING THE UPCOMING YEARS, Bonnier and content produced by our companies. will invest in and grow in areas where We want Bonnier to continue to develop we haven’t been present before. Not least over the long term as a profitable family- within knowledge-intensive services. owned company, while our businesses During 2015, we acquired majority should include leading journalism shares in the Danish e-learning company companies that contribute to an open, Clio Online, a success story that delivers inclusive society with free speech. digital learning materials to 90 percent of While our colleagues in the industry are Denmark’s grade schools. Our hope is that abandoning journalism and storytelling Clio can quickly expand in Sweden and for other online businesses, we have as it does, change Swedish schools, where chosen to continue as a media company. digitalization has so far had surprisingly little impact. WE BELIEVE THAT ENGAGEMENT by the owners, and the values that the company IF THIS SUCCEEDS, it would be a fantastic is based on, continue to be important for expression of what we want Bonnier the company, and that the family’s and to be: a mix where entrepreneurship company’s histories are closely tied. combines with a desire to contribute We are now in a period of intense to an inclusive and knowledge-based upheaval. We have a goal to quickly in- society, where every individual has the crease the share of our revenues coming opportunity to take part and make her from digital sources, from today’s 20 or his voice heard. percent to 50 percent by the year 2020. Can we combine fast change with a long- Carl-Johan Bonnier term perspective? Yes, we are convinced Chairman of the Board, Bonnier AB we can. As owners, we want to contribute

32 BONNIER ANNUAL REVIEW 2015 FROM THE OWNERS. “As owners, we never choose short-term profits over long-term strength.”

Our core values.

PASSION FOR MEDIA. FREEDOM OF SPEECH. POWER OF THE INDIVIDUAL. COMMITMENT OF A FAMILY COMPANY.

Family owners in New York City in 2012.

BONNIER ANNUAL REVIEW 2015 33 OUR CORE VALUES Living the Values. Activities throughout Bonnier reflect the company’s core values, including a wide range of social responsibility initiatives. PHOTO: KARL GABOR

Nurturing Kids’ Passion for Writing A place to write with adults who care. Sweden’s Berättarministeriet aims to give disadvantaged kids a leg up.

Berättarministeriet – the ministry of storytelling – is a Says Dilsa Demirbag-Sten, author, journalist and head nonprofit organization that provides writing workshops of Berättarministeriet's workshops: “Bonnierförlagen has for children and young adults in disadvantaged areas of supported Berättarministeriet from idea to an organiza- Sweden. As the nonprofit describes its reason for being, tion with three writing workshop spac es with more than “all children have dreams, ideas, thoughts, opinions 17,000 children participating in the various pr ograms. and experiences. Being able to express these is vital. Our cooperation with Bonnierförlagen and now Bonnier’s An environment that shows engagement with childr en’s Family Foundation will make it possible for even more thoughts strengthens their abilities." kids to conquer the written word.” Dilsa Demirbag-Sten

PHOTO: PETER JÖNSSON Welcome With Books At Carlsen Verlag in Germany, a handful of employees wondered how they could A Unique Owner: support refugees arriving into the country using their expertise as a chil Jeanette Bonnier 1934-2016 dren’s book publisher. The result was a special edition of one of Carlsen’s most In April 2016, Jeanette Bonnier died. For many beloved series, Pixi, published in Arabic, years, she was one of Bonnier’s most dedicated, Serbian, Kurdish and Farsi, with 50,000 active and brilliantly intense shareholders, and copies going to 50 refugee camps. board member for Bonnier AB, Expressen, Dagens “We really wanted to demonstrate Nyheter and SF, among others. She was also a gesture of comfort founder of Bonniers Konsthall and one of Sweden’s to people who had left most important patrons for young artists. Her everything behind,” says legacy will live on through a foundation focused Franzicka Dettke, part primarily on supporting artistic creativity, of the group behind the something central to Jeanette Bonnier’s life and initiative. achievements.

34 BONNIER ANNUAL REVIEW 2015 Public Debate PHOTO: COURTESY MTV Takes Center Stage SuomiAreena provides a public forum for decision makers to discuss key issues of the day. Jointly coordinated by broadcasting network MTV and the city of Pori, Suomi Areena is Finland’s biggest public forum for social discussion. Government, private and special interest groups meet to discuss the biggest topics of the day with panels and talks, held in conjunction with the Pori Jazz Festival. MTV not only is a driving force behind the event but also broadcasts 20 hours of programming, and it provides streaming of more than 200 hours of discussion on its on-demand service, Katsomo. SuomiAreena TV has grown over the years, and in 2015 it had record numbers with 1.7 million Front Page viewers, 160 individual events, 800 speakers and almost 60,000 visitors to Pori. for Freedom Expressen Editor-in-Chief Thomas Mattsson on the newspaper’s unique front page supporting The purpose of the campaign was to collect Charlie Hebdo following the 2015 Gear for Good unused sports equipment and get it to chil attacks in Paris: dren who could really use it. In the five cities TV4’s #geborttillsport collects sport "It was a terrible act, not just against the channel visited, 9.5 tons of equipment was equipment for kids who need it. Charlie Hebdo’s journalists and their donated. Zlatan Ibrahimovic, Mats Sundin, families, but also against everyone Annika Sörenstam and a range of Sweden’s In October 2015, TV4 together with Nyhets- – police as well as journalists – who other biggest sports stars also contributed, bolaget and Folkspel, started up the aid cherishes freedom of the press. For both with equipment as well as selling their campaign #geborttillsport (give for sports), Expressen, which sees the protection expertise in the form of lessons and talks that where the channel traveled around Sweden of freedom of expression as part were sold to the highest bidders, bringing and broadcast live from its morning news of its duty, showing our support and in SEK 500,000 during the week. The money program Nyhetsmorgon, on-demand service solidarity with Charlie Hebdo was went straight to Save the Children’s “High TV4 Play and Expressen’s web TV program a given. Five” sports for everyone initiative. Vardagspuls. "The cartoons in this case were clearly of interest to the general PHOTOS: TV4 public and particularly newsw orthy, and Expressen chose to publish them and furthermor e – for the first time – the entire front page of the newspaper was hand-drawn in honor of Charlie Hebdo's cartoon- ists. The c aricature featured on our first page was drawn by Philippe Honoré, who previously had worked for Expressen."

PH OT O: P E T E R

J Ö

Thomas Mattsson, Editor-in-Chief at Expressen

M Ö R T S G Recognizing and honoring the best in in each country. The awards go to the heart R E journalism, Bonnier’s independent of Bonnier’s core values and the importance B

S Grand Prizes journalism awards in Sweden, Finland of protecting free speech and supporting a U N

G in Journalism and Estonia are among the most prestigious pluralistic media landscape. A

H Johanna Bäckström Lerneby, Storyteller of the Year P

BONNIER ANNUAL REVIEW 2015 35 BOARD. The Bonnier Board of Directors.

BACK ROW 1 Peder Bonnier Member of the Board. 2 Christian Caspar Member of the Board. 3 Sara Stenman Member of the Board, Employee Representative. 4 Arne Karlsson Member of the Board. 5 Kerstin Mogull Member of the Board. 6 Carl-Johan Bonnier Chairman of the Board. 7 Pontus Bonnier Vice Chairman of the Board. FRONT ROW 8 Maria Curman Member of the Board. 9 Martin Harris Member of the Board. Employee Representative. 10 Mikael Falk Member of the Board. Employee Representative.

36 BONNIER ANNUAL REVIEW 2015 GROUP. Bonnier Executive Management.

BACK ROW 1 Jacob Dalborg Head of Business Area, Books. 2 Lars Dahmén Head of Business Area, Magazines. 3 Gunilla Herlitz Head of Business Area, News. 4 Tomas Franzén CEO. 5 Göran Öhrn CFO. 6 Anders Eriksson Head of Business Area, Business to Business. 7 Casten Almqvist Head of Business Area, Broadcasting.

MIDDLE ROW 8 Niklas Hydén Head of Group Program Management and Chief Pr ocurement Officer. 9 Fredrik Linton Head of Corporate Development and M&A. 10 Ulrika Saxon Head of Business Area, Growth Media. FRONT ROW 11 Anki Ahrnell Chief Digital & Technical Officer. 12 Jan Lund Director of Strategy and Business Development. 12 Great Moments in the History of Bonnier

1 Beginning 3 Major With Books Magazine Maker 4 Voice Against 1804 | Gerhard Bonnier 1929 | Bonnier purchases publishes an anthology of crime Sweden's largest magazine Fascism stories called Underfulde og publishing company, Åhlén & 1944 | Bonnier leaders found sandfærdige kriminalhistorier Åkerlund. Albert Bonnier Jr., evening newspaper Expressen (Strange and true criminal 2 New Way to is just 22 years old and living in an effort to counteract Nazi histories) in Copenhagen. The in New York when he receives propaganda. The paper gains name on the cover of the book Get News news of the purchase through a reputation for being the was that of German writer 1888 | Bonnier buys shares a telegram from his father, “little man’s” voice against Henrik Spiesz, but Spiesz in Dagens Nyheter, Sweden’s Tor Bonnier. The text of the those in power, and quickly claimed he didn’t actually write first morning newspaper, one telegram reads: "Today we became the largest daily in it. The true identity of Bonnier’s of the 19th century’s most bought Åhlén & Åkerlund. the Nordic area—a position first published author remains popular media innovations. Vogue la galère [roughly, it maintains for more than 50 a mystery to this day. (Full ownership came in 1924.) ‘Make it or break it’].” years.

5 Big Screen Buy 6 Business 7 Founding 8 Broadcasting 1973 | Bonnier acquires Must-Read a Free Press in the Picture major Swedish film company 1976 | Bonnier starts 1989 | Bonnier creates I997 | BBonnier becomes Svensk Filmindustri, SF. Swedish business daily business daily Äripäev co-owner of TV4, Sweden's The company was best known Dagens industri, forming the to assist the democratic largest commercial TV for producing most of the basis of a successful group movement in Estonia. channel, eventually acquiring films by Ingmar Bergman of financial newspapers Because freedom of speech 98.9 percent. In 2005, it and movie adaptations of in countries throughout was still a rare commodity became co-owner of MTV, Astrid Lindgren’s children’s Northern and Eastern in the Baltics at that time, Finland's No. 1 commercial books Pippi Longstocking Europe. Äripäev was printed in TV station. and Karlsson on the Roof. Stockholm and shipped to Estonia for secret, free distribution.

10 Big in the U.S. 2005 | Bonnier becomes 12 Journalism for the 9 On Into part-owner of magazine publisher World Publi- Age of Social Media 11 E-Commerce cations and the following Kid’s Play 2015 | Kit.se launches in 2005 | Bonnier acquires online year, acquires Time4Media 2011 | Children's app Sweden, a new concept for Nordic book retailer Adlibris, and The Parenting Group. maker Toca Boca launches high-quality journalism online which has since branched out Together they become and within four years, has that uses reader data in into other segments. Bonnier Corporation. 100 million downloads. new ways.

Want to know more about Bonnier's history? Visit www.bonnier.com/history 38 BONNIER ANNUAL REVIEW 2015 The Bonnier Annual Review 2015

Editor and Project Manager Bert Menninga Photo Editor and Assistant Project Manager Elin Eriksson Director of Communications David Salsbäck

Production Spoon

Contributing writers, photographers and illustrators Linda Alfvegren, Magnus Bergström, Hussein El-Alawi, Steen Evald, Karl Gabor, Johan Jarnestad, Peter Jönsson, Kai Mueller, Karin Strand, Rune T and Elisabeth Ubbe Translation Translation Scandinavia Printer Trydells

Bonnier AB 113 90 Stockholm Sweden tel. +46 8 736 40 00 [email protected] www.bonnier.com

BONNIER ANNUAL REVIEW 2015 39 www.bonnier.com