Brands Connected Annual Report 2007

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Aftonbladet VG Aftenposten SvD Blocket FINN 20 minmi utes InfoJobs SSegunddamano connected 6 annual report 2007

6 ¸ Internet brands connected annual report 2007

q 66 content: THE FAST READ 1 our company 2 our results 4 our arena KORTVERSJON: For en rask 6 our market versjon, et høykom primert sam- 8 our strategy 9 our responsibility mendrag, av denne årsrapport: Les de neste 9 sidene. Hele histo- 10 WE ARE READY FOR CHANGES rien starter på side 10. Vi anbe- Kjell Aamot, President and CEO faler deg å lese den også…

12 DISCRIPTION OF OPERATIONS

35 BRANDS CONNECTED 36 our market – media users and advertisers 40 our media houses strategy – the new media day (insert) 41 living organisations ET NETTVERK AV MERKE- 44 our most important social responsibility 45 the Tinius trust VARER: Om vårt marked, vår 46 gender equality and environment arena, våre organisasjoner, vår strategi og vårt samfunnsan- 47 the group council svar. I tillegg: Slik er det nye 48 shareholder information mediedøgnet. 50 corporate governance 53 the nomination committee’s report

55 BOARD OF DIRECTOR’S REPORT

67 declaration regarding the determination of salary and other remuneration to managers 72 articles of association

73 ANNUAL REPORT 127 auditor’s report

129 Schibsted’s history SCHIBSTED ANNUAL REPORT 2007 –– THE FAST READ PAGE 1 4 OUR COMPANY

our company: Schibsted is a company with Scandinavian roots and ambitions to be the most attractive 2007 media group in Europe. Operating revenues per business area

INTERNATIONAL We currently have operations in 20,7% NORWAY 21 countries and innovation is a 43,6% key word for us. We are shaping the media of tomorrow – today. SWEDEN 35,7%

NEWSPAPERS have been our core activity since 1860. Schibsted’s newspapers hold leading positions 2007 in Norway, Sweden and Estonia. The free newspaper Operating proﬁt (EBITA) 20 Minutes is the most read newspaper in Spain and per business area France.

INTERNATIONAL 12,5% Our ONLINE activities have grown sharply over the past few years. The way in which this has taken place

SWEDEN has put the focus on Schibsted in the international 21,3% media world. When others jumped off, Schibsted dared NORWAY to continue to invest in online activities and is reaping 66,2% the rewards of this now.

READ MORE ON PAGE 12 our results

Schibsted’s 2007 results were the best ever, as regards both operating revenues and operating proﬁt (EBITA). The operating revenues increased by 17 per cent compared to 2006. The operating margin was 8,6 per cent.

-10 02 03 04 05 06 07 ONLINE ACTIVITIES’ SHARE OF OPERATING PROFIT (EBITA)1) – FIGURES: % Share of reported result Share of reported result adjusted for new initiatives 1) EBITA ex assosiated companies

2007 2006 2005 2004

CIRCULATION Aftenposten morning edition, weekdays 250 179 248 503 252 716 249 861 51% Aften, afternoon edition, weekdays 131 089 137 141 141 612 148 067 Sunday 219 052 221 067 223 228 220 149 The online activities continued to Verdens Gang weekdays 309 610 315 549 343 702 365 266 develop strongly and produced 51 Sunday 262 786 268 355 298 736 315 103 per cent of the Group’s operating Aftonbladet weekdays 388 500 416 500 428 422 444 100 proﬁt (EBITA) (after adjusting for Sunday 455 800 475 300 501 428 504 300 associates). Svenska Dagbladet weekdays 194 900 194 900 187 200 179 200 Sunday 204 500 203 400 197 100 190 800

ADVERTISING VOLUMES (column meters) Aftenposten 89 917 79 589 77 160 70 588 Verdens Gang 11 098 9 278 8 411 7 203 Aftonbladet 15 129 15 296 14 871 14 633 Svenska Dagbladet 26 384 25 350 22 240 18 366 SCHIBSTED ANNUAL REPORT 2007 –– THE FAST READ PAGE 3 4 OUR RESULTS

key ﬁgures Schibsted Group

(NOK million) 2007 2006 2005 2004

Operating revenues 13 610 11 648 9 832 9 690 Operating expenses (11 996) (10 375) (8 709) (8 458) Income from associated companies 149 179 198 84 Operating profit (EBITDA) 1 763 1 452 1 321 1 316 Depreciation and amortisation (586) (439) (344) (376) Operating profit before impairment of good- 1 177 1 013 977 940 will others revenues and expenses (EBITA) Operating profit (EBIT) 1 246 2 495 1 161 514 Profit before taxes 1 028 2 413 1 177 476

Operating margin: EBITDA (%) 13.0 12.5 13.4 13.6 EBITA (%) 8.6 8.7 9.9 9.7 EBIT (%) 9.2 21.4 11.8 5.3

Proﬁt ratio (%) 4.7 18.40 8.9 2.5 Equity ratio (%) 31.0 31.2 40.6 32.8 Return on equity (%) 13.2 54.9 33.5 10.5 Return on total assets (%) 8.1 21.2 16.2 7.7 Net interest bearing debt / EBITDA 2.3 2.3 0.6 0.9

EPS (NOK) 9.52 32.52 12.91 3.55 EPS diluted (NOK) 9.49 32.45 12.89 3.55 Cash ﬂow per share (NOK) 19.36 39.53 18.53 15.39 RISK per share (4.19) (3.18) 1.21

NORWAY Operating revenues 5 979 5 351 4 941 Operating proﬁt (loss) (EBITA) 779 533 631 Operating proﬁt (loss) (EBIT) 947 1 532 710 Operating margin (EBITA) (%) 13.0 10.0 12.8

SWEDEN Operating revenues 4 903 4 626 4 150 Operating proﬁt (loss) (EBITA) 251 430 370 Operating proﬁt (loss) (EBIT) 234 971 275 Operating margin (EBITA) (%) 5.1 9.3 8.9

INTERNATIONAL Operating revenues 2 840 1 735 791 Operating proﬁt (loss) (EBITA) 147 50 (24) Operating proﬁt (loss) (EBIT) 65 (8) 176 Operating margin (EBITA) (%) 5.2 2.9 (3.0)

DEFINITIONS Operating margin: EBITDA margin: Operating profit (loss) before depreciation and amortisation, impairment of goodwill and other revenues and expenses / Operating revenues EBITA margin: Operating profit (loss) before impairment of 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) /Averagenumber of shares

4 READ MORE ON PAGE 73 our arena

Within a few years Schibsted’s operations have expanded from covering one country and 2 000 employees into an international group with companies in 21 countries and 9 000 employees.

PRINTED NEWSPAPERS ONLINE NEWSPAPERS

OTHER CLASSIFIEDS / SEARCH

LIVE PICTURES

*382

* NUMBER OF EMPLOYEESOYEEES SCHIBSTED ANNUAL REPORT 2007 –– THE FAST READ PAGE 5 4 OUR ARENA

*10 4 *2 834 * *2 073 *1 050 5 * 4 125 * * *315 *161

*10

*316 *10 *4

*218 *1 460

4 READ MORE ON PAGE 36 our market

Media users and advertisers in a large geographical arena. Printed products are our tradition, while the Internet is our present and future. Our market is large, expanding and exciting.

the media users the advertisers

A normal person uses many media channels Half of our revenues come from advertising throughout the day. Media usage changes in sales. It is important to understand how the line with technology and society. To Schibsted, advertising “cake” is divided between the it is important to understand which trends will media channels. Analyses of the advertising become dominant in order to develop viable market show that more money will be spent business models whose media content is on advertising in the future. The various chan- adapted to the users’ wishes and needs. nels’ share of this cake is changing a lot.

Some important trends: Main features –– Fragmentation –– Online advertising is increasing –– Multitasking –– The use of video advertising is increasing –– Public control –– The daily press still has a strong position –– Online communities –– TV is still the most important advertising –– Mobile phones window in most markets SCHIBSTED ANNUAL REPORT 2007 –– THE FAST READ SIDE 7 4 OUR MARKET

Internet online classiﬁed ads new, exciting countries

Online advertising just keeps on growing. The classified ads market in Europe is strongly Spain and in part France are on their way to Its share will double on a global basis over affected by the opportunities afforded by becoming “domestic markets” for Schib- the next 4 to 5 years. Radio and magazines the Internet. This is the most important and sted. The media landscape here provides are being surpassed on the list of the largest fastest growing channel and Schibsted is a development opportunities. Newspapers have advertising channels. In several of the coun- key company. In the space of a few years, the traditionally focused on the upper strata of tries that Schibsted defines as new domestic revenues from online classified ads advertis- society and TV has been the largest advertis- markets, the level of online advertising is ing are expected to exceed EUR 1.2 billion. ing channel. The fact that Schibsted’s free lower than average. We expect changes to 90 million Europeans use such marketplaces. newspaper, 20 Minutes, is now the most read take place here. newspaper in both countries is an example of Leading Schibsted websites: a new trend. Russia is an interesting market. Drivers for growth: –– InfoJobs.net in Spain Newspapers have traditionally been an im- –– Paid searches –– Leboncoin.fr in France portant advertising channel, but TV has taken –– Social online communities –– Subito.it in Italy over. Schibsted’s free newspaper, Moi Rayon, –– Changed advertising budgets –– FINN.no in Norway is an example of the fact that this trend can –– Multimedia advertising –– Blocket.se in Sweden be reversed.

4 READ MORE ON PAGE 36 our strategy

In 1995, Schibsted was primarily a Norwegian newspaper house that had been listed on the stock exchange three years earlier. Then it started making its ﬁrst investments in online and other new media. Schibsted has now become an international media group with operations in 21 countries.

Our vision is: Schibsted will be the most attractive media group in Europe. Our goal to shape the media of tomorrow – today, is to be achieved by attracting people who dare, who challenge and who create. 1Schibsted is watched with great interest by other international companies. The core of its strategy 1has been to develop a portfolio of strong brands and positions. Its strong media houses have been 1an important reason for Schibsted’s success in Scandinavia. The Media houses’ strength is their strong, well established position in the market. We believe the media house strategy will continue to be the basis for future growth in Scandinavia and other selected geographical areas. In that sense, it is still a platform for further expansion.

We want to combine the advantages of being part of an international media group with the internal diversity, local knowledge and involvement of our subsidiaries. Our goal is to utilise the potential which lies in our network of sound brands. User insight and innovation are cornerstones of this. We must further develop the traditional newspaper products, export successful concepts and utilise our subsidiaries’ power through increased cooperation and establish strong brands in new channels. 2 In order to be the most attractive media group in Europe, we must also be a leader 2 in developing organisations and pave the way for continuous improvements. At 3 Schibsted, we use many tools and programmes to reach our goals. Living organisations create results. In order to create living organisations, 333 environments where people enjoy working and are able to develop must be created.

That’s why it is important that Schibsted is a good place to work. 4444 READ MORE ON PAGE 40 SCHIBSTED ANNUAL REPORT 2007 –– THE FAST READ PAGE 9 4 OUR RESPONSIBILITY our responsibility

Responsibility and credibility are key words for a serious media group. This applies in relation to users, customers, employees, shareholders and society in general. In a modern, democratic society, the media have important tasks and this also makes great demands on them.

The very ﬁrst in the row of social obligations is the publishing responsibility: To safeguard freedom of speech and editorial freedom and integrity.

Editorial independence, credibility and quality are the Schibsted Group’s publishing credo. This is a proud tradition which is stated and anchored in our articles of association and which is key to the exercise of the ownership and management of the Schibsted Group.

One of the cornerstones of Schibsted’s vision is that the Group is to contribute to democracy and diversity through having respect for the fact that various media are based on different publishing and political viewpoints and have their own distinctive characteristics. This means that Schibsted may be, and is, the publisher and owner of opinion-stating media that are based on different philosophies and state their views in editorials with various political starting points.

Schibsted’s largest owner, Tinius Nagell-Erichsen, died on 12 November 2007. Schibsted’s articles of association assign rights to his 26.1 per cent shareholding which provide a so-called negative majority. The Tinius Trust was established by Nagell-Erichsen in 1996 in order to prevent his shareholding in the Schibsted Group from being split up and to use its inﬂuence to safeguard Schibsted as a media group characterised by free, independent editorial staffs, credibility and quality. This is also 3 stipulated in the Trust’s articles of association. The Trust is now managed by the board which Nagell-Erichsen himself appointed.

4 READ MORE ON PAGE 44

This is where the short version ends THE WHOLE STORY starts on the next page 2007 was characterised by international- we are isation, integration and change. We continued to adapt ourselves and our organisation to ready for the new media world, and these processes will continue in 2008. We are prepared for change a future with new changes in the media President and CEO Kjell Aamot picture and ﬂuctuating economic conditions. SCHIBSTED ANNUAL REPORT 2007 –– PRESIDENT AND CEO PAGE 11

No industry has experienced as large and fast upheavals over the past decade as the media industry. Schibsted has continuously been at the forefront when it comes to adapting to new challenges. We are used to situations of change, and feel conﬁdent that we are well prepared to face the future.

2007 was the year when Schibsted seriously became an international company. That was when we really started to integrate our major acquisition in 2006 – parts of Trader Classi- ﬁed Media. We have succeeded in this. At the same time, we are also managing to safeguard our lengthy traditions, not least when it comes to ensuring the diversity of our media through, among other things, editorial freedom and respect for the fact that different media have their own distinctive nature. We are also continuing to further develop the good collaboration that exists across Group boundaries.

The integration process has given us valuable experience that we can use in the work of internationalising the Group. The change processes we have carried out for several years as a way of adapting to a new media world have aroused great international interest. Harvard University, for example, prepared a business case relating to how Schibsted had managed to handle changes in the media industry better than many other companies, a case for ﬁnal year students on the strategy course.

NOT REST ON OUR LAURELS The fact that Rupert Murdoch invited Schib- sted to a digital seminar – to shed light on this taking place in other countries. An interna- WE WILL CONTINUE THE WORK issue together with 70 of the most important tional forecasting agency predicts that this STARTED BY TINIUS managers in News Corporation – was a pleas- share will be 15 per cent as early as in 2010. Our largest shareholder, our first chairman ant recognition of many skilled employees Naturally, we will compete for the revenues of the board and the last active member of throughout the Schibsted Group. We must be that this increase represents. the original family that owned Schibsted, careful not to just rest on our laurels. On the Tinius Nagell-Erichsen, died on 12 November other hand, we have gained an incredible con- The distribution of Schibsted’s net value crea- 2007. One of the cornerstones of Schibsted’s tact network that may be extremely valuable tion between the various media channels is ownership is unfortunately no longer with us, in our future work. constantly changing. The online operations’ but his influence lives on through the Tinius share will continue to grow. We are adapting Trust, which controls his shareholding. This These processes will continue in 2008, in both our organisation in order to best be able to will ensure ”business as usual”, and there our market places and our own organisation. face this situation. is little doubt that our entire organisation is We have seen for a long time that our growth ready to continue the work started by Tinius. opportunities in Norway are limited. We take The fact that the economic situation may be We feel exceptionally well prepared to tackle the fact that an increasing share of our opera- about to change may make the immediate fu- this challenge. tions are outside Scandinavia very seriously. ttureure especespeciallyially challengchallenging.ing. ThThisis wwillill iincreasencrease the We will also continue to adapt to the changes ffocusocus on our cost base and on rerequiredquired rates ooff OOurur vision is for Schibsted to be the most iinn market develodevelopmentspments that will take pplacelace at rreturneturn on new investments. A quicker way to a aattractivettractive medmediaia group iinn Europe. ThThisis wwillill aann increasinincreasinglygly rapid pace. pprofitrofit must be ffoundound in a ccyclicalyclical downturn than continue to be our guiding star. We have great when all the ssignsigns are popointinginting upwards. aambitionsmbitions and a strong willingness to achieve ONLINONLINEE OPOPERATIONSERATIONS WWILLILL It wwillill be challenchallengingging to contcontinueinue wwithith our oourur ggoals.oals. ININCREASECREASE long-term value-creatvalue-creationion strategy by dardaringing to TThehe online share ofof the total Norwegian adveadver-r- make investments which pproviderovide a basis fforor tisintisingg packapackagege will exceed 10 per cent fforor the long-term growth even in a turbulent market first time in 2008. Similar developments are ssituation.ituation. description of operations business areas

DESCRIPTION Norway In the Norway business area, Schibsted owns among other things the Aftenposten and VG media houses, the classiﬁed ads service FINN.no, Schibsted Forlag (publishing houses) and Schibsted Søk (search), as well as considerable stakes in several regional newspapers.

Aftenposten delivered sound results in 2007. Both real estate and recruitment advertising contributed to a growth of 13 per cent in the print edition’s proﬁts, despite recruitment advertising slowing down a little towards the year-end. The morning newspaper’s circulation rose by more than 1 600 and the circulation revenue increased due to higher subscription prices. Aftenposten Multimedia also achieved a sound increase in operating proﬁt.

The VG media house did well in 2007 too. The print edition’s advertising revenues increased, as did the circulation revenues despite a decline in circulation of just under 6 000. This was due to the launch of the VG7 Sunday supplement and an increase in the sales price on Sundays. VG’s online activities, including the Nettby online community, increased their revenues by all of 44 per cent compared to 2006.

Sweden The Sweden business area mainly includes the two media houses Aftonbladet and Svenska Dag- bladet, in addition to Metronome, a TV and ﬁlm production company, Sandrew Metronome, a ﬁlm distribution company, and Aspiro, a mobile phone contents company.

Aftonbladet was characterised by a number of new investments in directory services, free news-papers and TV in 2007, and these debited the operating proﬁts by SEK 312 million. The print edition’s advertising revenues fell but the circulation revenues increased despite a declining circulation. This was due to a price rise. The online activities’ advertising revenues increased sharply compared to 2006 – by all of 38 per cent (Nya Medier (New Media) including Blocket and Byt Bil). The free newspaper Punkt SE’s readership is increasing but it will take time before this affects the advertising revenues. The TV7 investment was phased out and the operations were taken over by another company in October. The media house will instead continue to focus on live online pictures.

International Since the spring of 2007, all the Group’s activities outside Norway and Sweden have been organised in Schibsted International. For the past few years, online activities and free newspapers are the media types that have experienced the sharpest growth in revenue.

Schibsted’s internationalisation strategy is based on expansion in exactly these segments, with a focus on free newspapers, online news services and online classiﬁed ads. The structural displace- ment of revenues from printed classiﬁed editions to these segments is expected to continue.

Schibsted’s international product portfolio is divided into two main categories: editorial and classiﬁed ads based products.

Editorial activities are carried out in Estonia, Lithuania, Russia, France and Spain. In Estonia, the products range from daily newspapers and magazines to broadcasting and online activities. In Lithuania, the Group publishes magazines, free newspapers and paid-for newspapers, while in the other countries the focus is on free newspapers and online-based editorial services. SCHIBSTED ANNUAL REPORT 2007 –– DESCRIPTION OF OPERATIONS PAGE 13

KEY FIGURES

Schibsted Søk carried out a major restruc- In February 2008, Media Norge was ap- Operating profit Norway turing process in 2007, including savings proved after more than a year of discussions (NOK million) 20072007 2006 measures. Its main focus in future will be when the Media Ownership Appeals Board Subscription revenues 716 674 on directory services, among other things. overturned the Norwegian Media Authority’s Single copy sales revenues1 446666 1 337 The ownership has also been transferred to decision to prohibit the merger between the Advertising revenues2 922 2 488 FINN.no (55%) and VG (45%), while Aften- following four regional newspapers: Aften- Other revenues8 87575 852 Operating revenues5 979979 5 351 posten is one of the owners of the directory posten, Bergens Tidende, Stavanger Aftenblad Operating expenses( (55 340340)) (4 905) service. and Fædrelandsvennen. This approval means Income from associated companies1 14040 87 that the media houses, which also include Operating profit (EBITA)77 7799 533 Schibsted Forlag (publishing) enjoyed great FINN.no, can finally continue the work of Impairment loss goodwill0 0 Other revenues and expenses16 168 8 998 success with the best seller “The Kite Run- implementing this merger. Operating profit (EBITA)9 94747 1 531 ner”. The regional newspapers increased their advertising revenues in 2007 and produced Operating margin (EBITA)(%)13 13.0.0 10.0 better results than in 2006.

The Svenska Dagbladet media house’s results management took over. The advertising film Operating profit Sweden were varied. The print edition’s advertising operations have been sold and the drama film (NOK million)200 20077 2006 revenues increased sharply and circulation operations have been partially shut down and Subscription revenues3 37676 364 revenues rose slightly, producing the best oper- partially integrated into the TV production Single copy sales revenues1 386 1 314 ating profit ever. The newspaper’s share of the operations. At the same time, Metronome has Advertising revenues 1 602 1 344 advertising volume in the Stockholm market bought Stockholm-København, a production Other revenues1 535399 1 604 Operating revenues4 903 4 626 rose throughout the year and the newspaper company. Schibsted has increased its share in Operating expenses( (44 663663)) (4 287) is attracting more and more readers at the ex- Income from associated companies1 111 91 pense of its competitors. The online activities, Metronome from 65 per cent to 100 per cent. Operating profit (EBITA)2 25151 430 however, achieved slightly worse results due to Film distribution company Sandrew Metronome Impairment loss goodwill-5 0 Other revenues and expenses-12 541 increased investment in their services. achieved slightly weaker results than in 2006. Operating profit (EBITA)23 2344 971

Metronome Film & Television strengthened Operating margin (EBITA)(%)5 5.1.1 9.3 its core activities during the year after a new

Several milestones were reached in 2007: in nine countries and thus considerably Operating profit International 20 Minutes has become France’s most read increased this part of the Group’s operations. (NOK million)200 20077 2006 newspaper, and the print edition made an The Group now has classified ads activities in Subscription revenues93 83 operating profit for the first time ever. 20 Spain and five Latin American countries as Single copy sales revenues2 25858 165 Minutos is still Spain’s most read newspaper. well as in France, Italy, Switzerland, Estonia, Advertising revenues2 252555 1 309 Kanal 2 is Estonia’s largest TV channel and Lithuania and Malaysia. During the year, these Other revenues234 178 Operating revenues2 884040 1 735 was awarded a new digital terrestrial network activities were increasingly integrated into the Operating expenses( (22 691) (1 686) licence. Moi Rayon has become St Peters- Group. In addition, new services were Income from associated companies( (2)2) 1 burg’s most read newspaper. In Moscow, this launched in Italy and Malaysia, the latter in a Operating profit (EBITA)147 50 newspaper increased its circulation and joint venture with Singapore Press Holdings. Impairment loss goodwill( (3)3) (10) Other revenues and expenses( (79)79) (48) distribution and is now available in 42 of the Operating profit (EBITA)65 (8) city’s 118 districts and published in 18 different editions. Operating margin (EBITA)(%)5 5.2.2 2.9 In 2006, the Group bought the classified ads services of the former Trader Classified Media description of operations channels

DESCRIPTION

Printed The print newspapers make up the traditional core PART OF REVENUES (%) of Schibsted, and have been the starting point newspapers for the development of media houses in Norway, Sweden, the Baltic region, Spain and France. The 67% print newspapers accounted for 67 per cent of the revenues in 2007, a decline of only three per cent. Their revenues increased by 12 per cent.

After adjusting for the fact that Schibsted Classified Media (ex Trader) was included for half of 2006, the increase is 8 per cent and is primarily due to good advertising growth not only in Aftenposten but also in VG and SvD. The operating revenues of the classified ads newspapers in the Spanish, French and Italian markets declined due to titles being closed down in line with the increased priority given to the websites. The total operating profit made by the print newspaper platform increased by 10 per cent in 2007.

For the ﬁrst time, 20 Minutes in both Spain and France were proﬁtable on an annual basis, and both are the most read newspapers in their countries.

Online The online activities of our media houses have be- PART OF REVENUES (%) come increasingly important over the past few years. newspapers In total, their revenues increased by 25 per cent, 6% primarily due to good growth in VG Multimedia.

The proﬁt for 2007 was slightly lower due to the investment in the 20 Minutes’ online newspapers and some other organic projects. In addition, Afton- bladet Nya Medier’s results were slightly weaker. VG improved its margins and revenues considerably. The online community Nettby made a particularly positive contribution, with higher revenues and strong margins. The restructuring of Aftonbladet’s sales force produced positive results in the form of higher revenues in the last part of 2007.

The number of unique visitors to our online newspapers is more or less unparalleled in our main markets. VG and Aftonbladet are absolute market leaders in Norway and Sweden respectively. 20minutos.es is the third largest online newspaper in the Spanish market, while 20min.fr is the fourth largest in France. SCHIBSTED ANNUAL REPORT 2007 –– DESCRIPTION OF OPERATIONS PAGE 15

REVENUES per media platform PROFIT (EBITA) per media platform

(NOK million) 2007 2006 (NOK million) 20072007 2006 Printed newspapers 9 146146 8 178 Printed newspapers 759 690 Online newspapers 777744 618 Online newspapers 127 148 Classiﬁed/Search 1 921921 1 036 Classiﬁed/Search 398 140 Live pictures 1 342 1 328 Live pictures (20) 80 Other 427427 488 Other (87)(87) (45) Total revenues 1313 610610 11 648 Total 1 177177 1 013

DESCRIPTION

Classified ads/ Since the acquisition of Trader in 2006, online clas- PART OF REVENUES (%) sified ads have made up a large part of Schibsted’s search operations. Both the revenues and results improved 14% greatly in 2007. A lot of this is due to the fact that 2007 was the first year when the new companies contributed throughout, but it is also due to successful development measures since the acquisition. The Scandinavian classified ads companies are continuing to increase both their revenues and their profit margins. FINN.no’s revenues are increasing strongly in all verticals, Blocket.se’s margins are improving, and in the fourth quarter Hitta.se’s revenue increased by all of 117 per cent. The search operations have been restructured and the focus on directory services will increase.

Live pictures Schibsted sold its stakes in traditional TV operations PART OF REVENUES (%) (TV2 and TV4) in 2006 and Aftonbladet’s TV7 was sold 10% in 2007. The full focus on live pictures is now linked to the development of web TV in the online newspapers and TV and ﬁlm production and distribution.

The revenues of the live pictures media platform were stable compared to 2006. Live pictures made an operating loss in 2007, compared to an operating proﬁt of NOK 80 million in 2006. This was partly due to the disappearance of the revenues from the TV2 and TV4 associates and partly due to amounts debited by TV7 in 2007.

Other The category ”other” mainly includes Schibsted’s PART OF REVENUES (%) group administration, the Schibsted Eiendom (real 3% estate) group, Basefarm, Schibsted’s publishing operations and the Aspiro mobile phone company. The worsening of the results is due in part to a larger number of people in Schibsted’s group administration and in part to Aspiro achieving weaker results in 2007 than in 2006. description of operations media houses

DESCRIPTION

Aftenposten is one of Norway’s oldest and largest media houses, and has strong (100%) positions in both the print and online sectors. The morning and afternoon editions are Norway’s second- and fourth-largest newspapers respectively, with a total daily readership of more than one million. The morning edition developed positively, with a growth in circulation and stable readership. The afternoon edition’s circulation declined a little but its readership increased slightly.

The online edition, aftenposten.no, experienced a growth in trafﬁc (see to page 30). Aftenposten invested in all channels in 2007 and this media house now reaches more readers than ever –– FINN.no (62%) before. The new media day makes great demands on all media houses. In Aftenposten, print and –– Aftenposten Multimedia (100%) online activities are to be two equal integrated platforms, with the news work being led from a (integrated in Aftenposten from January 2008) common central editorial department. –– E24 AS (60%) –– Distribution Innovation AS (60%) –– Aftenposten Distribusjon AS (100%) In the autumn of 2007, a very ambitious new initiative was initiated for the afternoon newspaper. –– Retriever AS (51%) Eight local newspapers are now published and distributed to all households along with the –– Schibsted Trykk AS (40%) afternoon newspaper, Aften, every Wednesday – seven in Oslo and one in the neighbouring –– Media Norge Salg AS (20%) municipalities of Asker and Bærum. Good economic conditions, together with targeted work –– NTB AS (11.1%) –– Mediapost AS (33%) to tailor-make products to suit advertisers and through editorial magazines and customer –– Fellesdistribusjon Østfold AS (50%) magazines, have resulted in sound growth in the advertising revenues. –– Romerike Mediadistribusjon AS (34%) Aftenposten’s operations also include the sale of information from databases, publication of magazines, distribution services and development of new distribution systems.

The Verdens Gang AS media house publishes Norway’s largest newspaper, VG, (100%) Norway’s largest website, www.vg.no (see page 30) and Norway’s largest personal ﬁnance magazine, Dine Penger. VG is the majority owner of Nettby.no, a web community that has 600 000 “citizens”. Together with Aftenposten, VG also owns E24, which is Norway’s most visited business and ﬁnance news website.

VG’s goal is to be Norway’s foremost supplier of news, entertainment and useful articles throughout the day. By this is meant that VG is to be best at the topical news in which people are interested. VG aims to be a leader in publishing its own news and to be innovative and make new platforms popular, –– VG Multimedia AS (100%) accessible and proﬁtable. –– Dine Penger AS (100%) –– Avisretur AS (50.1%) VG’s channels reach more than 50 per cent of Norway’s population over the age of 12 years daily. In –– Schibsted Trykk AS (40%) the 20-39 age group, VG reaches almost 60 per cent of the population. –– E24 AS (40%) –– NTB AS (10.7%) –– VG Pluss AS (100%) Its advertising revenues increased by just over 20 per cent in 2007. This media house offers advertis- –– Radio VG AS (100%) ers exciting and attractive solutions which combine paper, the Internet and mobile phones. VG –– Nettby Community (60%) makes continuous efforts to improve its analyses of how these channels inﬂuence each other. With a weekday daily circulation of 310 000, VG captured market shares in a declining single-copy sales market. After several years of a 5-10 per cent fall in circulation, this decline was less than two per cent in 2007.

The ﬁgure in brackets after the parent companies shows Schibsted’s stake in the company. The ﬁgure in brackets after the subsidiaries shows the parent companies’ stakes. SCHIBSTED ANNUAL REPORT 2007 –– DESCRIPTION OF OPERATIONS PAGE 17

SUMMARY KEY FIGURES

THE PAST YEAR –– The best ever operating and annual profit. 1500000 Operating profit Aftenposten Group –– The online activities accounted for more than 50 per cent of the profits for the first (NOK million) 2007 2006 1200000 Circulation revenues 1) 703 672 time. Advertising revenues 2 056 1 726 –– A strategy decision that print and online Other revenues 346 269 900000 activities are to be two equal platforms. Operating revenues 3 105 2 667 Operating costs (2 653) (2 369) –– Ambitious investment in the afternoon 600000 print edition, Aften. Operating profit (EBITA) 452 298 –– Kristin Skogen Lund succeeded Olav Mu- Operating margin (EBITA) (%) 14.6 11.2 gaas, who resigned after 11 years as CEO. 300000 No. of employees 1 108 1 026

AMBITIONS 03 04 05 06 07 –– To strengthen the morning edition’s posi- 1) Circulation revenues consist of subscription and single copy sales revenue tion and increase the number of readers. DISTRIBUTION OF ADVERTISING REVENUE –– To reinforce and strengthen the FINN AFTENSPOSTEN - NOK 1 000 group’s position. Brand/Display –– To double the number of people using the Classiﬁeds websites. –– To become Norway’s largest media house measured in advertising revenue. –– To stabilise the home delivery quality at a constant high level.

THE PAST YEAR –– Dine Penger was bought as part of the 2500 Operating profit VG Group media house’s vertical strategy. (incl. VG AS, VG Multimedia AS, E24 AS (40%), Nettby Community AS (60%), Avisretur AS and Dine Penger AS) –– VG Nett was Norway’s most read news 2000 medium. A new Sunday magazine, VG7, (NOK million) 2007 2006 Circulations revenues 1) 1 223 1 185 was launched in September. 1500 –– The share of the single-copy sales market Advertising revenues 672 559 Other revenues 76 62 increased. Advertising revenues were 1000 Operating revenues 1 971 1 806 higher than ever. Operating costs (1 606) (1 516) –– Organisational developments and im- Operating profit (EBITA) 365 290 proved efficiency, with 20 per cent fewer 500 Operating margin (EBITA) (%) 18.5 16.1 employees in the printed newspaper.

–– Nettby was established as a large, proﬁtable 02 03 04 05 06 07 08 No. of employees 482 496 online community with 600 000 citizens. 1) Circulation revenues consist of subscription and single copy READERSHIP PRINT AND INTERNET sales revenue AMBITIONS – FIGURES IN 1 000 –– VG aims to be a news leader. Internet only –– VG aims to increase its daily audience. Both –– VG aims to be innovative. Print only –– VG aims to become an even more attractive workplace. –– VG aims to export the successful Nettby concept – initially to Sweden and Spain. description of operations media houses

DESCRIPTION

2007 was a dramatic year for the Aftonbladet Hierta media house. Despite the (100%)* newspaper’s fall in circulation and the TV7 operations, it managed to achieve a very positive result due to its stringent savings programme. 2007 was a year of great variation.

Aftonbladet coped with the structural upheavals as the expected changes in the media market took place. These included a programme to save SEK 100 million, half of which was saved in 2007. The revenues increased by 13 per cent, mainly due to the single-copy sales newspaper Nya Medier (New Media – see page 30) and Blocket (see page 22).

–– Aftonbladet Kvällstidningen AB (100%) All of 85 per cent of the media house’s employees took part in the “Great Place to Work” work- –– Aftonbladet Nya Medier AB (100%) ing environment survey. This demonstrates a high level of involvement and willingness to take –– Aftonbladet Gratistidningen AB (100%) part in the work of improving the workplace. Aftonbladet aims to be Sweden’s most attractive –– Byt Bil AB (100%) –– Blocket AB (67.36%) workplace and have the best employees. –– Teleadress Information AB( 96.7%) –– Hittapunkt-se AB (96.7%) Despite the fall in circulation, Aftonbladet has 1 258 000 daily readers and is thus still the –– Prisjakt Sverige AB (70%) Nordic region’s largest newspaper. In addition, the Kropp & Hälsa (Body & Health) magazine –– Jobb 24 HB (50%) increased its circulation by 15.7 per cent. –– Schibsted Søk AB (100%) –– Rörlig Bild Sverige AB (30%) Anders Gerdin resigned after 10 years as editor-in-chief and a total of 38 years with the newspaper. He was succeeded by Jan Helin.

The SvD media house continued to strengthen its position in the Swedish media market. (99,41%) Both the print newspaper and the media house’s websites are growing. The focus on quality journalism in all channels has been well received. SvD is now one of Sweden’s leading media houses. Its concept has been to combine a quality newspaper’s classical credibility with a modern, clear way of imparting news. SvD has once again been awarded the Svenska Designpriset (Swedish Design Prize). The Svenska Dagbladet print newspaper managed to increase its circulation for the third year in a row. The circulation increased by 1 500 copies. Over the past 15 years, Swedish newspa- –– Tidningen Svenska Dagbladet (100%) pers’ circulation has fallen on average by 20 per cent. This is also special in an international –– SvD.se (100%) context - Svenska Dagbladet is one of the few paid-for newspapers in Europe whose circulation –– E24 Näringsliv (60%) is increasing. –– Tasteline (94%) –– Jobb24 (50%) –– MinTur ( 91%) SvD is published in three parts on weekdays: News, Culture and Business. In addition, a new –– Pressens Morgontjänst (50%) magazine, Min Helg (My Weekend) is published on Fridays, a real estate and interior design sup- –– Blocket (15%) plement, Magasinet, is published on Saturdays and a culture magazine, K, and business maga- –– Tidningarnas Telegrambyrå (10%) zine, N, are published on Sundays. As an extra service, SvD also publishes food-supplements four times a year in cooperation with its subsidiary, Tasteline. Apart from this, supplements such as Scenhöst and Scenvår are published, in addition to specialist magazines when major events are held, such as the Olympic Games, Football World Championships and elections. The SvD media house includes the following websites: SvD.se (see page 30), E24 Näringsliv (page 30), Tasteline (page 31) and minTur. The newspaper is printed in Södertälje, Örebro and Gothenburg.

* Aftonbladet Hierta AB is owned by Schibsted and The Swedish Confederation of Trade Unions. The Confederation of Trade Unions owns 50.1% of the voting shares through preference shares with a ﬁxed return (SEK 3.5 million). Schibsted owns 49.9% of the voting shares and has the industrial and ﬁnancial owner responsibilities for Aftonbladet’s development. SCHIBSTED ANNUAL REPORT 2007 –– DESCRIPTION OF OPERATIONS PAGE 19

SUMMARY KEY FIGURES

THE PAST YEAR –– The work of implementing cost savings 3000 Operating proﬁt AFTONBLADET Group continued. (SEK million) 2007 2006 –– Nya Medier (New Media) increased its 2500 Circulation revenues 1) 1 578 1 486 circulation and had a fantastic Q4. Advertising revenues 1 245 1 036 –– Punkt SE increased its readership enor- 2000 Other revenues 175 167 mously at the expense of its competitors. Operating revenues 2 998 2 689 Operating costs (2 795) (2 375) –– Hitta.se saw a huge increase. 1500 –– Blocket was hugely successful, both in Operating proﬁt (EBITA) 208 316 Sweden and abroad. 1000 Operating margin (EBITA) (%) 6.9 11.8

No. of employees 958 828 AMBITIONS 500 –– To ensure that the decline in the single- 1) Circulation revenues consist of subscription and single copy copy newspaper’s circulation bottoms out. sales revenue 02 03 04 05 06 07 –– To continue with the savings programme in 2008. READERSHIP PRINT AND INTERNET –– Punkt SE will continue to strive for positive – FIGURES IN 1 000 financial figures. –– Hitta.se will try to once more surpass Eniro Internet only and make a profit. Both –– Nya Medier will try to reinforce and in- Print only crease its leadership position as Sweden’s largest and best online newspaper.

THE PAST YEAR

–– The Friday magazine Min Helg was 50 Operating proﬁt SVENSKA DAGBLADET Group launched. –– The SvD.se online newspaper was rede- 40 (SEK million) 2007 2006 Circulation revenues 1) 456 442 signed. Chosen as “Media Site of the Year” Advertising revenues 619 521 30 by InternetWorld. Other revenues 74 73 –– The E24 concept was launched in the Operating revenues 1 149 1 036 20 Netherlands under the name Z24. Operating costs (1 100) (1 002) –– The travel portal minTur.se was bought – 10 Operating proﬁt (EBITA) 49 34 a meeting place for those who like to travel. Operating margin (EBITA) (%) 4.3 3.3 –– The media house’s sales department was 0 reorganised into a common organisation No. of employees 454 422 for the printed and online publications. -10 1) Circulation revenues consist of subscription and single copy sales revenue -20 AMBITIONS 04 05 06 07 –– A continued focus on growth, increased advertising sales and circulation. OPERATING PROFIT –– A continued focus on improving results – FIGURES IN SEK MILLION

and efﬁciency enhancement measures. Operating proﬁt (EBITA) –– Continued efforts to make SvD into an even more modern media house. –– A continued optimisation of the channels to adapt to the readers’ and customers’ needs. description of operations media houses

DESCRIPTION

With a daily readership of 2 507 000, 20 Minutos is Spain’s largest newspaper. It was launched in Madrid and Barcelona in 2000 under the name Multiprensa y Mas and bought by Schibsted in 2001. Between 2003 and 2006, the newspaper became a national medium, with (80%) editions published in all of Spain’s most important cities.

On average, just over one million copies are distributed each weekday. 20 Minutos’ print edition made an operating proﬁt of Euro 4.6 million.

The Spanish free newspaper market is one of Europe’s most competitive. 20 Minutos has reinforced its position as the preferred newspaper for readers and advertisers. The website 20minutos.es is Spain’s third most visited news website, and its trafﬁc volume grew by 60 per cent in 2007. 20 Minutos also publishes a monthly magazine, Calle 20, which focuses on culture, urban trends and fashion. 327 employees.

20 Minutes is France’s most read newspaper, and has 2 526 000 readers daily. The newspaper is published in Paris and seven other cities (Lyon, Lille, Marseille, Toulouse, Nantes, Bordeaux and Strasbourg), and has a circulation of 870 000. (49,75%) 20 Minutes was launched in 2002 and has achieved a leading position in the French newspaper market in a short space of time. In a competitive market, 20 Minutes has become the preferred printed medium for young, active, urban Frenchmen. The newspaper is distributed in the morning near to public transport hubs, ofﬁce centres, universities and colleges. In addition, theme supplements are published.

20 Minutes surpassed the L’Equipe sports newspaper in the official readership survey and became France’s largest newspaper. Its advertising revenues have grown annually. The print edition made an operating profit for the first time in 2007. The online newspaper, 20minutes.fr, is expanding rapidly. 166 employees.

Eesti Meedia is Estonia’s leading media company, with newspaper, magazine, online, printing and distribution operations. The company, which was formed in 1998, is registered in Tartu but its headquarters were moved to Tallinn in 1999. (100%) All the activities in Estonia are characterised by strong economic development, increased –– Postimees AS (100%) investments in advertising, a shortage of labour and consequential pressure on wages. Most –– Postimees Online OÜ (100%) companies have therefore produced record results. The Baltic countries have experienced –– Kroonpress AS (99.71%) –– Pärnu Postimees AS (100%) considerable ﬁnancial growth over the past few years, not least since they became members of –– Soov Kirjastus AS (100%) the EU. –– SL Õhtuleht AS (50%) –– Ajakirjade Kirjastus AS (50%) In total, Eesti Meedia’s advertising revenue increased by 35 per cent in 2007. Postimees’ adver- –– Linnaleht AS (50%) tising revenue increased by 40 per cent. The ﬁve local newspapers also improved their results –– Express Post AS (50%) –– Sakala Kirjastuse AS (50%) sharply with circulation gains, a strong growth in advertising and improved operating margins. –– Viru Press AS (53.13%) –– Järva Teataja Kirjastuse AS (50%) –– Litero AS (95.10%) SCHIBSTED ANNUAL REPORT 2007 –– DESCRIPTION OF OPERATIONS PAGE 21

SUMMARY KEY FIGURES

THE PAST YEAR

–– The newspaper is the leader in the reader 2700 Operating proﬁt 20 MINUTOS SPAIN (100%) market with 2.5 million readers daily. (EUR million) 2007 2006 –– The 15th edition was launched in Asturias 2200 Operating revenues 46.8 41.1 (the towns of Gijón, Oviedo and Avilés). Operating costs (46.2) (40.5) Operating proﬁt (EBITA) 0.6 0.6 –– 20minutos.es has 4.3 million visitors each 1700 month. Operating margin (EBITA) (%) 1.3 1.5

1200 No. of employees 327 279 AMBITIONS

–– To reinforce its position as the most read 700 newspaper in Spain. 03 04 05 06 07 –– To continue with the online newspaper’s 20 Minutos Metro Que! ADN progress. READERSHIP FREE NEWSPAPERS IN SPAIN –– To launch a local version of the Nettby – FIGURES: 1 000 online community.

THE PAST YEAR

–– 20 Minutes became the most read news- 2700 Operating profit 20 MINUTES FRANCE (100%) paper in France. (EUR million) 2007 2006 –– The newspaper made an operating profit 2200 Operating revenues 45.4 43.3 for the first time. Operating costs (47.1) (48.7) –– A very strong Q4, with revenues that were 1700 Operating profit (EBITA) (1.7) (5.4) 29 per cent higher than in Q4 2006. Operating margin (EBITA) (%) (3.7) (12.5)

–– 20minutes.fr is now France’s fourth most 1200 No. of employees 166 146 visited news website. 700 AMBITIONS 05 05/06 06 06/07 07 –– Aims to reinforce its position as the most 20 Minutes Metro L´Equipe Le Monde read newspaper with operating proﬁt. READERSHIP IN FRANCE –– 20minutes.fr aims to become one of – FIGURES: 1 000 France’s most visited news websites.

THE PAST YEAR

–– Schibsted bought the Tulevik Foundation’s 1000 Operating proﬁt EESTI MEEDIA GROUP 7.5 per cent stake and gained full control. –– The Russian edition of Postimees led to a 800 (EEK million) 2007 2006 Operating revenues 840 707 strong growth in readership. 600 Operating costs (750) (630) –– Kroonpress continued to expand and Operating proﬁt (EBITA) 90 77 increased its production capacity. 400 Operating margin (EBITA) (%) 10.7 10.9

No. of employees 981 902 AMBITIONS 200 –– The companies aim to consolidate their positions in their market niches. 03 04 05 06 07

–– Positions are to be strengthened, not least Operating proﬁt Operating revenues as regards new media developments. GROWTH –– A new magazine press will service new – FIGURES: EEK MILLION market segments. description of operations FINN/Blocket

DESCRIPTION

2007 was a very good year for the FINN group.FINN reinforced its strong position in the real estate, car and recruitment markets and is still Norway’s fifth largest website measured in (81,5%) numbers of unique visitors. A new record of more than 3.5 million unique visitors in one month was set in October. In total, more than seven billion pages were shown on FINN in 2007. –– FINN Jobb AS (100%) –– FINN Bil AS (100%) On average, every Norwegian spent more than 8.5 hours on FINN in 2007. FINN’s revenue grew by –– FINN Torget AS (100%) NOK 175 million and its operating profit rose by 63 per cent. In 2008, FINN was chosen as Norway’s –– FINN Reise AS (100%) –– FINN Eiendom AS (82.7%) third-best workplace for the second year in a row. This is an award that FINN is proud of. –– FINNTech AS (100%) –– Turistinfo AS (100%) FINN Jobb AS (recruitment) accounted for much of the value creation in the group. –– Vision Completed AS (100%) FINN Torget (marketplace) was spun off from FINN Vekst AS and achieved a profit of NOK 4.8 million. –– Eiendomsprofil AS (100%) FINN Reise (travel), part of FINN Vekst, developed very well. Its traffic volume grew by 120 per cent. –– Human Content AS (60%) –– Mötesplatsen iNorden AB (40%) FINN Eiendom AS (real estate) increased its number of advertisements by 26 per cent and made –– SFI Holding AS (30%) a profit of NOK 67.1 million. –– Sentinel Software AS (16%) FINN Bil (automotive) – all of 578 102 advertisements were published in 2007.

When Blocket was started in 1996, it was as a local buy-and-sell market in Skåne in (94,21%) Southern Sweden. Its operations were run out of a garage in Fjälkinge by one person. Today, the situation is quite different: Blocket has three million unique visitors to its websites every week. More than every second Swede has bought or sold something via Blocket. The value of the goods and services advertised in 2007 was SEK 161 billion. Up to now, the Blocket concept has been exported to Spain, France, Italy and Malaysia.

Trafﬁc record. Advertising record. Sales record. Proﬁt record. Blocket has continued to grow in a competitive market. The value of everything that was advertised during the year equals 5.5 per cent of Sweden’s GDP. In addition, a number of projects are being carried out abroad.

Synovate Temo has conducted a large branding survey that gives Blocket a high score. Visitors perceive the website to be simple and easy to use. A shop concept with new functions, such as a discount card for buying classiﬁed ads, has been developed for corporate customers. The marketing campaign relating to this concept led to increased sales in very varied sectors. SCHIBSTED ANNUAL REPORT 2007 –– DESCRIPTION OF OPERATIONS PAGE 23

SUMMARY KEY FIGURES

THE PAST YEAR 4000000 –– An innovation tool, FINNopp, and astrategy Operating proﬁt FINN Group 3500000 and innovation department were established. –– It was decided to buy Sesam. 3000000 (NOK million) 2007 2006 Operating revenues 575 398 –– A marketing and sales development 2500000 Operating costs (327) (249) department was established. Operating proﬁt (EBITA) 249 149 –– Vision Completed AS, supplies photoserv- 2000000 Operating margin (EBITA) (%) 43.3 37.4

ices to real estate agents, was acquired. 1500000 No. of employees 221 156 1000000 AMBITIONS –– Further development of FINN Reise (travel). 500000 –– Continue to capture market shares 02 03 04 05 06 07 08 –– Maintain our position as one of Norway’s best workplaces. DEVELOPMENT OF UNIQUE USERS, FINN.NO –– Sesam. – FIGURES: 1 000

THE PAST YEAR 400

–– A new shop concept to make it easier for 350 Operating profit BLOCKET/BYTBIL companies to advertise. 300 (SEK million) 2007 2006 –– Greater focus on quality and security. Co- Operating revenues 385 294 250 operation with the police to prevent fraud. Operating costs (171) (151) –– The launch of Subito.it in Italy and 200 Operating profit (EBITA) 214 143 Mudah.com.my in Malaysia. Operating margin (EBITA) (%) 55.6 48.6 150 No. of employees 46 39 AMBITIONS 100 –– Continuous improvement of the websites 50 –– Continued investment in customer support 05 06 07 and security. –– Increased focus on corporate advertisers. GROWTH BLOCKET / BYT BIL –– Continued development of the real estate – FIGURES: SEK MILLION category. Operating profit –– Establish the company in new countries. Operating revenues description of operations Schibsted International Classifieds

DESCRIPTION Spain Spain is Schibsted’s largest classiﬁed ads market. The operations are organised through a holding company, Anuntis Segundamano Holding (ASH), in which the Group owns 76.23 per cent of the shares. The operations cover the entire range of classiﬁed ads products, print-based and online-based, paid distribution, free distribution, general services and specialised, vertical services. The most important brands are Segundamano, InfoJobs, Fotocasa and Coches. In total, the portfolio consists of 72 different newspapers and 11 different online services. The Spanish market was characterised by two phenomena in 2007: –- Firstly, a very quick structural change from paper to online and reduction in the paper-based media, linked to very rapid growth in the online-based operations. –- Secondly, there has been a sharp decline in activity in the real estate sector. Many real estate Mb!xfc!qbsb!dpnqsbs!z!wfoefs agents/brokers have closed down.

During the year, ASH reduced the number of print editions from 128 to 72 and cut staff in this area by 230 persons. The revenue from printed products fell by 20 per cent, of which five percentage points were due to the reduction in the number of editions. The scope of the print-based operations is expected to continue declining. When Schibsted bought the west European operations of Trader Classified Media in 2006, ASH’s market positions in Spain and the opportunities for Latin-Amerika continued profitable growth online were an important factors in this. Developments have been as expected and the online results in Spain are very satisfactory. Revenues rose by 59 per cent to EUR 68 million and the increase in profits is also very satisfactory. Online activities now produce 93 per cent of the operating profit, with Infojobs, Segundamano.es, Fotocasa.es and Coches.net as the largest contributors. Schibsted has a very strong position in the online classified ads sector in Spain. The Group’s services are leading in all segments.

Schibsted has two major classiﬁed ads operations in France. One of them, France Car&Boat Media, has both a print and an online edition. The other is the online-based general services portal leboncoin.fr. Car&Boat Media is a 50/50 joint venture with a French media company, SPIR, and was established in 2007 following a merger of La Centrale, the leading company in the French automotive advertising market, and Caradisiac, the largest online car forum in Europe. The result is a very strong leader in the automotive information and sales market. La Centrale is the clear leader in the market for buying and selling used cars. With its 1.3 million users and 130 000 advertisements, this service is larger than its competitors. It is also the most popular classiﬁed ads magazine for buying and selling used cars, and is particularly strong in the Paris region. In addition to used cars, it is also a channel for buying and selling motor bikes and commercial vehicles. This weekly magazine is 40 years old this year. Despite the fact that used car trading is also moving from print to online in France, the magazine still has a strong position. Caradisiac focuses on car-related content and dominates this market with more than two million unique visitors per month. This forum (www.forum-auto.com) has more than 20 000 user comments per day and is the world’s largest auromotive forum. The combination of these services means that Car&Boat Media is read by more than 30 per cent of those who are interested in cars and around 10 per cent of the total online public in France each month. Car & Boat Media also publishes a boat website and a monthly magazine called “Annonces du Bateau”. Leboncoin.fr is a general online-based service using Swedish Blocket.se’s concept and technology. The service was launched in 2006 and has become the most popular service of it’s kind in a short space of time. Half a million people use it each day and they have 1.5 million advertisements to choose from. SCHIBSTED ANNUAL REPORT 2007 –– DESCRIPTION OF OPERATIONS PAGE 25

Operating proﬁt SCHIBSTED CLASSIFIED MEDIA, proforma (EUR million) 2007 2006 Circulation revenues 1) 23 29 Advertising revenues 167 158 Other revenues 8 8 Operating revenues 198 195 Operating costs (180) (166) Operating proﬁt (EBITA) 18 29 Operating margin (EBITA) (%) 9.1 14.9

No. of employees 2007 2304

1) Circulation revenues consist of subscription and single copy sales revenue

SUMMARY

THE PAST YEAR –– Segundamano.es and CompraVenta.es 3000 3000 were merged. 2500 2500 –– Segundamano.es started to charge for classiﬁed ads in September. 2000 2000 –– InfoJobs.net had more than three million 1500 1500 unique visitors per month in June (NNR). 1000 1000 –– Coches.net had more than 1 million unique visitors per month in September (NNR). 500 500 –– The number of FotoCasa customers almost 0 0 doubled during the year. Jan07 Mar07 May07 Jul07 Sep07 Nov07 Jan08 Jan07 Mar07 May07 Jul07 Sep07 Nov07 Jan08

JOB – UNIQUE USERS (PER MONTH) GENERALIST UNIQUE USERS (PER MONTH) AMBITIONS – FIGURES: 1 000 – FIGURES: 1 000 –– To increase the online positions’ revenues considerably. Infojobs (Schibsted) Segundamano (Schibsted) –– To become the clear market leader in the infoempleo.com SoloStocks.com online sale of real estate. Laboris.net (Schibsted) Loquo.com –– To keep the leader position in automotive Neurona.com Mundoanuncio.com advertising. Campusanuncios.com –– To establish new sources of revenue for InfoJobs. –– To strengthen Segundamano’s leadership position in the generalist market.

THE PAST YEAR

–– The merger of La Centrale and Caradisiac to 2500 2500 form one company – Car&Boat Media. 2000 2000 –– La Centrale had more than 1 million unique visitors per month in September (NNR). 1500 1500

–– Caradisiac had more than 2 million unique 1000 1000 visitors per month in July (NNR). 500 500 –– Leboncoin had more than 350 000 unique visitors per day in November. 0 0 –– Leboncoin had more than a quarter of a Jan07 Mar07 May07 Jul07 Sep07 Nov07 Jan08 Jan07 Mar07 May07 Jul07 Sep07 Nov07 Jan08 billion page views in December. CAR – UNIQUE USERS (PER MONTH) GENERALIST – UNIQUE USERS (PER MONTH) – FIGURES: 1 000 – FIGURES: 1 000

AMBITIONS Caradisiac (Schibsted) Leboncoin.fr (Schibsted) –– To develop synergies from the merger of La Centrale (Schibsted) Vivastreet La Centrale and Caradisiac. eBay Motors Kijiji –– To become a clear number one in the autodecics.com ParuVendu.fr online automotive segment in France. Autoreflex Annonces Jaunes –– To attract more than 5 million unique visitors to our online classified ads services. –– To deliver more than one billion page views through our online classified ads services. –– To expand the market area for sales to car dealers that we initiate. description of operations Schibsted International Classifieds

DESCRIPTION Italy Schibsted has three large classiﬁed ads operations in Italy: Secondamano.it, InfoJobs.it and subito.it

Secondamano’s operations include print- and online-based classiﬁed ads services. Eighty-ﬁve per cent of its revenue is linked to paper. The year has been characterised by a major turna- round operation, including a reduction in the number of products and a new technical platform (iAD – the same platform as FINN.no, among others, uses in Norway). This service primarily targets the automotive and real estate markets and has more than doubled its number of users and quadrupled its number of page views since the change of platform. The car vertical is now no. 2 in the Italian online market, while the real estate vertical is no. 3. Secondamano’s strategy is based on supporting strong online growth with the cost-effective development of the paper-based activities. Three print-based operations were closed down in Secondamano.it 2007. A gradual transition from print to online has resulted in fewer jobs, since online-based activities are less labour-intensive than print-based ones. The number of employees decreased during the year. Subito.it is an online service based on Swedish Blocket.se’s concept and technology. The service was launched in February 2007 and has become the most popular generalist service in Italy in a short space of time, with more than two million unique visitors a month and more than a quarter of a million advertisements. InfoJobs.it is an online recruitment service based on the concept and technology of Spain’s InfoJobs.net. This service was launched in 2004 and has become established as the leader in the Italian online recruitment services market, with more than 1.5 million job-seekers logging on to the service each month.

Schibsted International Classiﬁeds has operations in a further 11 countries: Others Estonia (soov.ee), Lithuania (plius.lt), Switzerland (Cerca & Trova), Austria (willhaben.at), Slovenia (bolha.com), Argentina (segundamano.com.ar, autofoco.com and focopropiedades.com.ar), Brazil (balcao.com.br and fojobs.com.br), Colombia (segundamano.com.co, ﬁncaraiz.com.co and fotocarro.com.co), Mexico (segundamano.com.mx, autofoto.com.mx and fotocasa.com.mx), Venezuela (elnegocioredondo.com.ve and fotocarros.com.ve) and Malaysia (mudah.com.my). These operations are smaller in size than those in Norway, Sweden, Spain, France and Italy, but they represent important footholds for the future.

The activities are primarily online-based but printed publications sometimes form part of them. The growth in the online-based part has been strong and both the usage and number of advertisements have frequently doubled during the year. At the year-end, these services led more than 4.5 million unique monthly visitors to more than 1.5 million classiﬁed ads.

This trend has strengthened our faith in online classiﬁed ads activities as an area that arouses great interest. In some countries, between a quarter and half of the population visit Schibsted’s online services every month. An example of this is bolha.com, which attracts more than 500 000 Slovenian users each month – more than half of the Internet users in the country. This service publishes more than 200 000 advertisements at any one time, equivalent to one advertisement

The marketplace of Malaysia for every tenth Slovenian. That says something about the interest in this type of service. The latest addition to Schibsted’s classiﬁed ads family is the Malaysian mudah.com.my. Mudah was launched in November 2007 and is a copy of Blocket. After just one month, almost 20 000 classiﬁed ads had been published using this service. SCHIBSTED ANNUAL REPORT 2007 –– DESCRIPTION OF OPERATIONS PAGE 27

SUMMARY

THE PAST YEAR –– The launch of a new platform for Seconda- 1500 2500 mano’s online activities in March. –– Subito.it launched in February. 2000 –– Infojobs had more than 1.4 million unique 1000 1500 visitors per month in September (NNR). –– Subito had more than 2 million unique visi- 1000 500 tors per month in November (NNR). –– Secondamano doubled its number of unique 500

visitors. 0 0 Jan07 Mar07 May07 Jul07 Sep07 Nov07 Jan08 Jan07 Mar07 May07 Jul07 Sep07 Nov07 Jan08

AMBITIONS JOB – UNIQUE USERS (PER MONTH) GENERAL SERVICE UNIQUE USERS (PER MONTH) –– To become the market leader in online – FIGURES: 1 000 – FIGURES: 1 000 car sales. –– To become the market leader in online InfoJobs (Schibsted) Secondamano (Schibsted) generalist services. Monster Subito.it (Schibsted) –– To strengthen the company’s position TrovoLavoro Kijiji.at as the leader in the online recruitment Bakeca.it services market. Virgilo Annunci –– To become the second-largest company in online real estate advertising. –– To signiﬁcantly increase the revenues from our online positions.

THE PAST YEAR

–– Mudah was launched in Malaysia in 120000 800 November. 100000 –– Willhaben in Austria doubled its number 600 of unique visitors. 80000 –– Bolha attracted more than 50 per cent of 60000 400 the Internet users in Slovenia each month. –– Autoplius’s online car service was used by 40000 200 more than one third of the Internet users in 20000 Lithuania each month. 0 0 –– Plius launched its real estate portal in Jan07 Jul07 Jan08 Jan07 Mar07 May07 Jul07 Sep07 Nov07 Jan08 Lithuania. DEVELOPMENT NUMBER OF GENERALIST ADS UNIQUE USERS WILLHABEN.AT AUSTRIA – FIGURES: 1 000 AMBITIONS –– To become a leader in the online general Willhaben.at (Schibsted) Willhaben.at (Schibsted) services market in Malaysia. Kijiji.at –– To strengthen Willhaben’s position as Flohmarket.at leader of the general services market in Bazar.at Austria and take a leading position in the Austrian real estate market. –– To develop new online verticals in Lithuania. –– To signiﬁcantly increase the revenues from our online positions. –– To develop new markets for online activities. description of operations other companies

DESCRIPTION KEY FIGURES

This company is registered in Tallinn and Operating results SCHIBSTED BALTICS (100%) BALTICS managed by Eesti Meedia. It is responsible for Kanal 2 in Estonia (100%) and for the activities (NOK million) 2007 2006 in the other Baltic countries, especially Lithua- Operating revenues 1263 971 –– Kanal 2 (Estland) (100%) Operating costs (1148) (910) nia. Lithuania’s economic developments –– Zurnaly Leidybos Grupè AS (66.67%) Income from assosiated companies 1 1 –– Ekstra Zinios UAB (65.98%) are similar to those in Estonia. The media Operating proﬁt (EBITA 116 62 –– 15 Minuciy UAB (65.99%) developments lag slightly behind, especially Operating margin EBITA (%) 9.2 6.4 –– Plius UAB (51.00%) the advertising market. The reader market is different, since newspapers are to a large ex- –– Kanal 2 further reinforced its position as Estonia’s tent read at the weekends. From a distribution largest TV channel. –– Zmones (Lithuanian) is the largest weekly magazine in point of view, the country does not have the Baltic region. a very well developed network of kiosks. –– The free newspaper 15 Minuciy (15 min) is the most read newspaper in Lithuania’s three largest towns.

Schibsted Forlag (publishing), which was Operating results SCHIBSTED FORLAG started in Norway in 1839, was the beginning (100%) of the Schibsted Group. 169 years after (NOK million) 2007 2006 its start, this publishing house is still going Operating revenues 357 377 strong. Its biggest success was the novel The Operating costs 331 346 Operating profit (EBITA) 26 31 Kite Runner, which was at the top of the best Operating margin EBITA (%) 7.3% 8.3% –– Schibsted Förlagen AB (100%) seller lists all year. Annuals also continued to –– Kartago AB (100%) sell well. The publishing house’s policy is to –– Schibsted Magasiner AS (100%) No. of employees 113 137 grow in publishing areas that have a publish- –– Dagens Medisin AS (50%) –– “The Kite Runner” sold 175 000 copies. ing and a financial potential: the company –– “A Thousand Splendid Suns” was printed in 75 000 is developing as a publisher of children’s copies. literature, translated fiction has become –– The “Guinness World of Records” and “Hvem Hva a new work area. Hvor” (Who What Where) annuals are still selling well.

(88.23%) Norway’s leading supplier of pictures and vid- Operating results SCANPIX Group eos within the areas of news, history and illus- trations for Norwegian media. The company is (SEK million) 2007 2006 in the process of changing from a traditional Operating revenues 137 170 Operating costs (116) (147) picture agency into a turnkey supplier of visual Operating proﬁt (EBITA) 21 23 content. The most important customer groups Operating margin (EBITA) (%) 15.6 13.4 are printed and online newspapers, weekly magazines, publishing houses, advertising No. of employees 61 89 agencies, trade press, business and websites. Scanpix cooperates closely with a number of –– The 100/15 target was reached – ie, more than NOK 100 foreign agencies and also has operations in million in revenue and a 15 per cent operating margin. the Baltic countries. 57 employees. –– Start of a project to develop illustration video operations.

Schibsted Søk AS was established in Norway Operating results Schibsted Søk (100%) SØK (SEARCH) in 2005 and launched the search service Sesam.no in November of the same year. (NOK million) 2007 2006 Schibsted Sök AB launched the Sesam.se Operating revenues 69 55 –– Sesam Media AS (100%) Operating costs (223) (181) search service in Sweden one year later. In Operating proﬁt (EBITA) (154) (126) –– Schibsted Søk AB (100%) Norway, the service had more than 500 000 (Sold to Aftonbladet 27.12.07) Operating margin (EBITA) (%) (225.4) (228.4) unique visitors per week during parts of the year and is one of the 15 largest websites in No. of employees 129 113 Norway. In Sweden, Sesam.se is one of the leading search services, with an average of –– Restructuring to implement a more correct cost base. 250 000 unique visitors per week. Well in- –– Arild Nilsen appointed new CEO. dexed contents and categorised result pages –– A proprietary Norwegian web index was replaced by are Sesam’s trademark. Yahoo’s web index. SCHIBSTED ANNUAL REPORT 2007 –– DESCRIPTION OF OPERATIONS PAGE 29

DESCRIPTION KEY FIGURES

The Nordic region’s largest live picture produc- Operating results METRONOME Film & Television Group tion company, with operations in Sweden, (SEK million) 2007 2006 (100%) Norway, Denmark and Finland. A collection of brands with a lot of experience of entertainment, Operating revenues 998 1 074 Operating costs (975) (1 052) drama and factual programmes, interactive TV –– Metronome (100%) Operating proﬁt (EBITA) 23 22 productions and the operation of portals. A main –– Meter (100%) Operating margin EBITA (%) 2.3 2.1 –– Friday (100%) supplier to the major Nordic TV companies. Its –– Stockholm-Köpenhamn (100%) productions include: Idol, Bonderomantikk, Deal No. of employees 866 654 or no Deal, Big Brother and not least the soap –– Filmlance (100%) –– Schibsted bought Endemol’s 35 per cent share and now –– Spartacus (100%) Hotell Cæsar, for which a contract to produce owns the entire company. –– Rubicon (100%) new episodes until 2011 has now been signed –– Several companies were acquired, including Stockholm- –– Bolaget (100%) with TV 2 in Norway. Köpenhamn Produktion AB and Friday TV.

(100%) Harry Potter, Blood Diamond, The Departed, Operating results SANDREW METRONOME Solstorm (Swedish), Switch (Norwegian) and Christmas Story (Finland) - Sandrew Metro- (SEK million) 2007 2006 –– Sandrew Metronome AB (100%) nome’s greatest successes in 2007. Sandrew Operating revenues 367 476 Operating costs (362) (466) –– Sandrew Metronome International AB (100%) Metronome is one of the Nordic region’s –– Sandrew Metronome Distribution Sverige AB (100%) Operating profit (EBITA) 5 10 leading film companies. Its business concept –– Sandrew Metronome Norge AS (100%) Operating margin EBITA (%) 1.3 2.2 is to create, buy and manage film rights to all –– Sandrew Metronome Danmark A/S (100%) No. of employees 108 156 –– Sandrew Metronome Video Danmark A/S (100%) present and future forms of distribution in the Nordic market. The company has offices in –– Sandrew Metronome Finland OY (100%) –– Sandrew Metronome operated within all the “windows” Stockholm, Oslo, Copenhagen and Helsinki. of the film industry’s value chain in 2007: distribution of The year was characterised by a poor supply films to cinemas, DVDs, videos on demand and TV and of film rights internationally. participation in film production work.

Schibsted Trykk AS (printing) has modern Operating results SCHIBSTED TRYKK production facilities at Nydalen in Oslo and (100%) is the largest company of its kind in Norway. (NOK million) 2007 2006 The company prints Aftenposten’s morning Operating revenues 817 774 Operating costs (749) (745) and afternoon editions, VG and Dagsavisen, Operating profit (EBITA) 68 29 a total of 230 million newspapers a year. The Operating margin EBITA (%) 8.3 3.7 company also prints advertising inserts and achieved considerable sales in this segment. No. of employees 264 275 A significant part of its operations is linked to inserts. The company is constantly making –– The ability to deliver was the best since the new print- efforts to improve. Its profits increased by NOK ing works started up. 40 million compared to 2006. –– A new facility for producing printing plates has resulted in cheaper production costs.

Harstad Tidende Gruppen AS (HTG) is the Operating results HARSTAD TIDENDE Group largest media group to have a head office in the north of Norway. A lot of its operations (NOK million) 2007 2006 and results are linked to printed newspapers Operating revenues 287 272 (78,94%) and printing, but its new focus on distribution Operating costs (267) (255) Income from associates 5 4 –– Bladet Tromsø AS (95,64%) and online operations has experienced the Operating profit (EBITA) 25 21 –– Brønnøysund Avis AS (68,73%) strongest growth. Operating margin (EBITA) (%) 8.7 7.7 –– Framtid i Nord AS (99,88%) HTG’s subsidiaries are mainly established in –– Harstad Tidende AS (100%) local markets and benefit from a strong eco- No. of employees 231 235 –– HTG Distribusjon AS (100%) nomic climate. These produced good results –– HTG Trykk (printing) finished replacing five printing –– HTG Multimedia AS (100%) in Finnsnes, Harstad and Brønnøysund. In towers and is now fully modernised. –– HTG Trykk AS (100%) Tromsø, Bladet Tromsø is fighting in a very –– The investment in online products led to the volume of –– Nordlandsposten AS (100%) competitive media market. traffic to HTG’s online newspapers increasing six-fold. description of operations Other companies

DESCRIPTIONBESKRIVELSE THE PAST YEAR Aftonbladet Nya Medier has been the leading Swedish –– Iraq Direct – allowed readers to take part in (100%) online newspaper since it started in 1994. Its use is con- everyday life in Baghdad. –– E24 HB (40%) stantly increasing. It had more than 3.8 million unique –– Plus – this pay service doubled its subscribers. visitors per week (+10%) at the year-end, and more than –– Aftonbladet reinforced its position as the 18.2 million unique visitors in 2007 (+11%). It was also dominant player in the web-TV sector. Its traf- the most popular web-TV site in Sweden. fic volume doubled. VG Multimedia AS wrote press history in 2007. In the –– Became Norway’s most read news medium. first quarter, VG Nett (online) surpassed the VG’s print –– VGTV had a growth of 40 per cent. (100%) edition to become Norway’s most read news medium, –– An average of more than 2.4 million Norwe- –– Nettby Community AS (60%) with 1 293 000 readers daily. Norway’s largest website gian users per week - a 35 per cent increase –– E 24 AS (40%) achieved an operating profit of NOK 119 million. compared to 2006. –– Movie 24 AS (50%) 77 employees. –– Tesked AB (30%) Both Aftenposten Multimedia AS’s revenue and number of –– Strong expansion during the year. (100%) users increased. This website was Norway’s eighth largest –– More than one million users each week. –– E24 AS (60%) at the year-end. Throughout the year, considerable invest- –– Merged to form part of Aftenposten AS ments were made in editorial staff, sales and development. from 1 January 2008. 57 employees.

SvD Digitala Medier consists of the E24, Tasteline, –– Chosen as ”Best Media Site of the Year” in (99.41%) Jobb24, minTur and SvD.se websites. The latter is Sweden by the InternetWorld newspaper. –– E24 HB (60%) the quality newspaper Svenska Dagbladet’s online –– Successful merger of the print and online –– Tasteline (94%) newspaper, and shares the same publishing platform. editions’ sales organisations. –– Jobb24 HB (50%) This website has 575 000 unique visitors per week. –– SvD.se increased its sales by 50 per cent. –– MinTur (91%) 31 employees.

E24 is the Nordic region’s largest ﬁnancial news website. –– The introduction of a new publishing plat- (99.65%) It started in 2005 and now has 700 000 visitors per form development. week. It achieved a proﬁt margin of 20 per cent on –– Successful recruitment of several key –– E24 international (70%) revenue of SEK 50 million. E24 also exists in Norway (see employees. –– Z24 via E24 International (20%) below) and was launched in the Netherlands in 2007. –– E24 was established in the Netherlands 27 employees. under the name Z24.

E24 reinforced its position as the largest financial news –– Sound sales work and good economic condi- (100%) website in Norway. Its weekly readership was stable at tions produced a profit for the first whole year. around 500 000 and the quality of this traffic improved –– Strong position as the website for financial considerably: the number of readers who go directly news. to E24’s front page is rising and there is greater use of –– A new, more effective and visually attractive specialised services. 18 employees. design strengthened the brand.

Hitta.se has exceeded all expectations when it comes to –– Surpassed Eniro.se in March and experi- (99.7%) number of visitors, employees and revenue. The fight for enced an extremely strong growth in traffic first place among the major directory services is a hard volume. one, and hitta.se plans to capture this position and retain –– Sales increased by 143 per cent. it. Its market outlook is good. 103 employees. –– The number of employees in the organisation increased by 100 per cent.

Bytbil.com was launched in 1997 as one of the ﬁrst –– A new technical platform and design. (100%) automotive portals in Sweden and has since the start- –– A strong focus on the service market, with up only worked with commercial customers. With a car repair shop subscriptions, online book- market share of 95 per cent, the company has a very ing and tyre service and storage facilities. strong market position. 29 employees. –– Strong increase in advertising sales. SCHIBSTED ANNUAL REPORT 2007 –– DESCRIPTION OF OPERATIONS PAGE 31

DESCRIPTION THE PAST YEAR Punkt SE is a free newspaper that is published in three –– Increased its readership by 67 per cent to editions, distributed in Stockholm, Gothenburg and 594 000 readers. (100%) Öresund. It has 600 000 readers each day and a smaller –– Its competitor, City, closed down in Gothen- format than its competitors. This is the third-largest burg and sold its Malmö operations. newspaper in Stockholm and the second-largest in –– The newspaper has been successfully Gothenburg and Öresund. redesigned. The Bergens Tidende media house is the leading media –– Growth in circulation. (52.82%) company in the western region of Norway. The Bergens –– Chosen as “Newspaper of the Year”. –– Askøyværingen AS (100%) Tidende newspaper has a quarter of a million readers –– The use of live pictures increased sharply –– Bygdanytt AS (100%) each day. This media house is a leader in the multimedia and new online services were launched. –– Fanaposten AS (100%) sector through bt.no and local TV (BTV). The region’s –– BTV AS (100%) most important marketplace. 520 employees. –– FINN AS (11.3%) Stavanger Aftenblad ASA achieved record results in –– Growth in circulation and strong increase (74.57%) 2007. The company experienced growth in both advertis- in advertising revenues. ing revenues and circulation. The growth in circulation is –– Sale of the existing head office – a new, –– Aftenbladet Trykk AS (100%) due to the change from broadsheet to tabloid format in modern media house was erected. –– Norsk Ombæring AS (100%) the autumn of 2006. 438 employees. –– Aftenbladet Multimedia was established. –– Aftenbladet Multimedia (100%) –– FINN AS (11.3%) Dine Penger is a personal finance adviser magazine –– VG took over the ownership from Schib- (100%) for the public in general. Dine Penger aims to improve sted Forlagene (publishing). people’s finances and create confidence in financial –– Breakthrough for a survey which confirmed decisions. Its circulation is 61 525, of which 85 per untrustworthy savings products. cent are subscribers. 28 employees. –– Trade press prizes in 2007: Dine Penger won the award for the best homepages.

Jobb24 is a job portal with unique opportunities. Its busi- –– A new Jobb24.se launched – business (99.71%) ness concept is to combine media in order to reach both model, website, technical platform. those who are actively looking for a job and those who –– A new CEO was appointed Helena are not via the start pages of SvD.se, Aftonbladet.se and Schreiter. E24.se. Six employees. –– Increase in sales + 167%, visitors + 48%.

(50%) Dagens Medisin is an advertising-ﬁnanced newspaper –– Published weekly since the autumn of 2007. for the health sector that targets physicians, pharma- –– New design and a greater focus on the cists and other decision-makers in the public health online newspaper. service. The circulation is 22 000. It is distributed only –– Dagens Medisin has a market share of to the target groups and can therefore advertise for 72 per cent. prescription medicines. 14 employees.

(93.84%) Tasteline Sweden AB is Sweden’s largest online food –– Major project to technically update Taste- and drink portal. Despite the fact that Bonnier launched line’s entire platform. new products to compete with it, prize-winning –– Success with Sweden’s largest cooking Tasteline’s revenue increased by 38 per cent in 2007 competition – “Home Chef of the Year”. compared to 2006. The company has 15 employees. –– A new competition situation. Bonnier is starting to compete.

Moi Rayon (“My District”) is a new type of free newspa- –– Moi Rayon became St. Petersburg’s largest (66.67%) per intended especially for people living in cities with 32 newspaper with 787 000 readers. weekly editions in Moscow and St. Petersburg. Some of –– The Moscow newspaper achieved the the contents are adapted to suit each individual district. planned circulation of 500 000. It has a total circulation of 933 000 and more than –– Moi Rayon was relaunched with a new 1.2 million readers. 161 employees. design in St. Petersburg. description of operations other companies

DESCRIPTIONBESKRIVELSE THE PAST YEAR Reinforced its position as Estonia’s leading TV programmes, such as “Shall We Dance” and channel, with a 50 per cent increase in revenue “Reporter”. The latter is an in-house developed (100%) and an operating margin of 31 per cent. Achieved concept which combines daily news with entertain- success with several programme concepts: both ment. This has proven to be the “heavy” winner in well-known foreign series and own-produced prime time. 72 employees.

Estonia’s largest newspaper, with a circulation of “ELU 24”.This newspaper has become the clearly (100%) just over 62 000. In addition, the newspaper is leading newspaper for advertisers – and has published in a Russian edition with a circulation increased its share of a strongly growing market. of 15 000. It is also an online leader – and has Its advertising volume grew by 40 per cent during had great success with its entertainment vertical the year.

(50%) This newspaper, which is jointly owned by Express single-copy sales fell while its subscription sales Group and Eesti Meedia, had a good year again in increased. The newspaper is now also focusing on 2007 and achieved an operating margin of 19 per strengthening its online operations. cent. This is now Estonia’s second-largest daily newspaper but its circulation has stagnated. Its

This printing works at Tartu is still in an expan- magazines. Kroonpress also prints magazines and (99.68%) sion phase and the latest new magazine printing printed matter for a number of Scandinavian and press will be taken into use in the spring of 2008. European customers. This share will increase as the The printing works produces all of Eesti Meedia’s new magazine printing press is phased in. newspapers and some of Ajakirjade Kirjastus’s

This company, which is jointly owned by Express The company achieved an operating margin of (50%) Group and Eesti Meedia, achieved a 2007 result 8 per cent in 2007 and efforts will be made to im- that is in line with budget but slightly lower than the prove this in 2008. The weekly magazine Kroonika 2006 result. Greater competition in the market has is still the most important magazine in its portfolio. required more effort and produced lower margins.

The Zurnalu Leidybos Grupe UAB magazine publish- house has expanded its operations by buying small ing house in Lithuania has had great success over titles and developed new magazine concepts in the past few years with its weekly magazine Zmones, order to cope with the competition from its largest (66,67%) which is the largest weekly magazine in the Baltic re- competitor. These countermeasures have proven gion and has a circulation of 140 000. The publishing to be very successful and Zmones’ position is now stronger than ever. The free newspaper 15 Minuciy (15 Minutes) It is now focusing on developing its online news- publishes separate editions in the largest cities in paper in order to build further on its established (65.99%) Lithuania, Vilnius, Kaunas and Klaipeda - and has position in print. become the most read newspaper in these cities.

The tabloid LT (formerly Ekstra Zinios) has re- expected. However, the number of subscriptions placed its management and made efforts to adapt is increasing. At the year-end, it had a circulation (65.98%) its editorial concept to suit the Lithuanian market. of 22 000. The new management, new and more Lithuania’s distribution systems are unsatisfactory ﬂexible printing capacity and greater sales efforts and this led to single-copy sales being lower than are expected to produce improved results. SCHIBSTED ANNUAL REPORT 2007 –– DESCRIPTION OF OPERATIONS PAGE 33

DESCRIPTIONBESKRIVELSE THE PAST YEAR

(72.04%) Infojobs.net dominates the Spanish online job –– More than three million potential job seekers market and is one of the three largest job services in visited the site each month. Europe. In 2007, the company became the world’s –– New record of 3 500 CVs registered per day ﬁrst job service with an “ofﬁce” in the virtual world. –– One of the three largest job services in Europe.

In September 2007, the two dominant buy- mano’s brand name and CompraVenta’s appear- (77%) Mb!xfc!qbsb!dpnqsbs!z!wfoefs and-sell websites in Spain, Segundamano and ance, is twice as large as its closest competitor. CompraVenta, were merged to form one common service. With more than 2.7 million unique visitors a month, the new service, which has Segunda-

(50%) In February 2007, Schibsted and SPIR Communica- also represents an acceleration of the ongoing tion fully merged their online-based operations, consolidation in the online car information seg- Caradisiac and La Centrale, to form the Car&Boat ment in France. –– Caradisiac –– LaCentrale Media company. Car&Boat Media is the absolutely –– Annonces du bateau largest online automotive service in France and

(50%) Leboncoin.fr was launched in the spring of 2006 three-four times the usage of its competitors. based on the Blocket concept. After one year online, LeBonCoin, with its 90 million page views per month, was the largest buy-and-sell website in France measured in page views. This is more than

The Austrian classiﬁed ads website Willhaben.at ex- during the same period. Willhaben was launched (50%) perienced a very strong growth in trafﬁc in 2007. Its in January 2006 based on FINN.no’s concept and unique monthly visitors in December 2007 increased technology. by 135 per cent compared to December 2006. The number of page views increased by 145 per cent

(51%) Autoplius is the car section of Lithuanian classi- 350 000 unique visitors per week. This represents ﬁed ads website Plius.lt. Autoplius was launched 1/3 of the Internet users in Lithuania, which has in 2003 and later became part of Schibsted a population of 3.6 million and 1.2 million Internet Baltics. Around 75 000 cars are for sale at any users. time on Autoplius and the website has around

(40%) Mudah.com.my is the newest branch of the Schibsted’s belief that south-east Asia is an excit- The marketplace of Malaysia “Blocket family” and has been online since ing market with a great future potential. November 2007. The investment in Mudah (which means “simple” and “practical”) was made together with Singapore Press Holdings and reﬂects

Latin-Amerika Through Anuntis Segundamano, Schibsted operates (Mexico). In addition, there are services in Colombia 12 classiﬁed ads websites in Latin America; the most and Venezuela. In total, our Latin American websites important of these are Autofoco.com and Segun- have more than 650 000 advertisements at any one damano.com.ar (Argentina), Infojobs.com.br and time and three million unique visitors each month. Balcao.com.br (Brazil) and Segundamano.com.mx description of operations other companies

DESCRITIONBESKRIVELSE THE PAST YEAR The online community Nettby was launched in Septem- –– Nettby - “Norway’s biggest city”, with ber 2006 and at the year-end 2007 it had 600 000 very 600 000 “inhabitants”. active and loyal “citizens” who shape the community –– Nettby achieved one of the best operating themselves through debates, blogs, pictures and diaries. margins in the Schibsted Group. nettby.no (60%) 250 000 people log in each day. –– Nettby generated 300 million page views each week. Teleadress provides information and services linked to –– A cost programme has been implemented. (99.70%) Direct Marketing. Through a high level of accessibility Fixed costs reduced by SEK 40 million. and ﬂexibility, it provides the “Right information in the –– As the only Swedish supplier of telephone right packaging at the right time”. Searching for new number data, it now supplies the Swedish target groups. 23 employees. Rescue Service SOS Alarm.

Retriever is the Nordic region’s leading supplier of media –– Good growth in customers. (100%) surveillance, media archives and media analyses on a dig- –– The revenue increased by 18 per cent. ital platform. The company supplies relevant and important –– The operating proﬁt increased by information and news 24 hours a day, based on 25 000 16 per cent. online sources and 4 000 printed newspapers. Retriever has a revenue of NOK 61 million and 45 employees.

Basefarm AS operates services for companies that –– A new computer centre was opened. use the Internet as an important customer chan- –– Basefarm AB was chosen as a gazelle (71.57%) nel. Basefarm’s customers all stipulate high quality company. demands. The company is a specialist in efﬁciently –– Basefarm and Infostream merged and now –– Basefarm AB – (100%) operating services with a high trafﬁc volume and level share premises. of complexity. 124 employees.

Aspiro offers mobile phone entertainment services, –– Contract with Telia Sonera to sell mobile phone (43%) company solutions and search services. A market games. –– Mobile Entry (25%) leader in Northern Europe, its products include mobile –– The launch of a mobile phone music shop –– Voolife (51%) TV, music, games and ringing tones for consumers. and a Nordic advertising network for mobile –– Aspiro Mobile Marketing (84%) 158 employees in Norway, Sweden, Finland, Denmark, phones. –– Rubberduck Medialab (100%) Estonia, Latvia and Lithuania. –– Mobile-TV agreements with 3, Thumbplay, etc.

Schibsted Eiendom (real estate) owns or leases ofﬁce –– The property at Apotekergaten 10 was sold (100%) EIENDOM and production properties in Norway. The premises are and leased back in the spring of 2007. mainly used by its sister companies. The company has –– Its Danish subsidiary, Jenagade 22 AS, was two employees and shares an ofﬁce with Schibsted ASA sold in Q4. at Apotekergaten 10 in Oslo. –– Schibsted Eiendom bought and resold the VG building in Q1 2008.

This company is responsible for the Group’s external at least 10 per cent of the next 12 months’ (100%) FINANS borrowings, investments and currency and interest- estimated revenue. For further information on rate positions and is the Group’s internal bank. Schibsted’s financial principles – refer to note Schibsted’s long-term financing is intended to ensure 2 on page 78 that the Group has sufficient financial flexibility. Schib- sted’s goal is for its total liquidity reserve to equal

For a complete overview of all of Schibsted companies, see note 27 (page 108), and note 13 (page 98) and note 25 (page 105) BRANDSbrands CONNECTEDconnected 21 countries on three continents – with 730 million people. Thatannual is Schibsted’s market – a market that is constantly changing. You can read more about this and about reportour organisation, strategy 2007 and corporate social responsibility on the next pages. And, in addition: See what the new media day is like.

–– a glimpse into our world: Page 36 OUR MARKET – MEDIA USERS AND ADVERTISERS

–– foundation for growth: Page 40 OUR MEDIA HOUSE STRATEGY: AN IMPORTANT FACTOR FOR SUCCESS

–– changed usage (insert) THE NEW MEDIA DAY

–– developments: Page 41 LIVING ORGANISATIONS

–– responsibility and credibility: Page 44 OUR MOST IMPORTANT CORPORATE SOCIAL RESPONSIBILITY

–– more corporate social responsibility: Page 46 GENDER EQUALITY AND ENVIRONMENT A GLIMPSE INTO OUR WORLD OUR MARKET – MEDIA USERS AND ADVERTISERS

Schibsted has operations in 21 countries and on three continents that have a total population of more than 730 million. Huge volumes of media are consumed every day in all the countries where Schibsted operates. Our media channels are display windovs for our advertisers.

Aruba (Caribbean)

Liechtenstein

Japan

Norway

Colombia

Finland

Cayman Islands

Macau They see live pictures on the Internet and TV to both media usage and the distribution of Sweden and at the cinema. They listen to the radio. advertising money among the various media They contribute themselves via readers’ let- channels. Our markets are very different, and Faroe Islands ters, blogs and video clips. They buy and sell it is important that we constantly acquire new Switzerland large and small objects, houses, cars, boats knowledge of local factors. Venezuela and motorbikes via advertising magazines, Austria newspapers and online marketplaces. Their Schibsted has operations in these countries: media usage means they are exposed to ad- Norway, Sweden, Denmark, Finland, France, Singapore vertising. Our many media platforms provide Spain, Estonia, Latvia, Lithuania, Austria, Italy, Denmark very valuable display windows Switzerland, Russia, Slovenia, Singapore, Estonia

Malaysia, Brazil, Columbia, Mexico, Venezuela France Our market thus consists of both media and Argentina. Spain users and advertisers. Sales of products and services account for 32 per cent of our 0 250 500 750 1000 revenue, while advertising sales account NEWSPAPER CIRCULATION PER 1000 INHABITANTS for 50 per cent. It is crucial that we have Source: WAN World Press Trends 2007 an in-depth knowledge of trends relating SCHIBSTED ANNUAL REPORT 2007 –– BRANDS CONNECTED PAGE 37

MEDIA USAGE WILL CHANGE RADICALLY

Key words for some of the most important Schibsted has had success with the Nettby is currently still in a start-up phase. The equip- trends in the media picture over the next few concept, which was developed by VG Multi- ment is becoming more and more sophisti- years will be fragmentation, multitasking, public media. After just over one year in operation, cated, mobile broadband is being extended on control, online communities and mobile phones. this online community has more than 600 000 a large scale and key players in the wireless “citizens” and advertisers are now also starting world seem to be willing to make a greater One powerful trend is that the public is to become interested in this media site. One commitment. gaining more and more control over media example of this is the advertising campaign for contents, a trend which can be regarded as lip balm, which managed to get Nettby’s users In Norway, which is a very mature market as both a cause and a consequence of the users’ to send almost 650 000 kisses in 48 hours! regards mobile telephony, only six per cent desire to have more control over their media of the population currently use mobile phone experiences. The increased use of social POWERFUL FORCES contents services each day. Several services network communities creates challenges There are powerful forces behind the assump- owned by Schibsted, such as VG, Aftenposten for traditional media’s revenue bases in that tion that mobile phones will become a much and FINN.no, are on the list of the most used these meeting places are gradually attracting more important marketing and media platform mobile phone contents services. more attention from advertisers. than we have seen so far, although the market ADVERTISING MARKETS CONTINUES GROWTH

The advertising markets are developing dif- European Football Championships. However, ferently in the various countries and for the a lot of the advertising market is dependent 15000 various media platforms. However, the main on cyclical movements. What there is so far trend in Scandinavia, Europe and the rest of limited experience of is how such fluctuations 12000 the world is that most channels are growing affect online advertising sales. as regards revenue but that each channel’s 9000 relative share of the total advertising volume In Schibsted’s traditional domestic markets is changing. – Norway and Sweden – advertising statistics 6000 show that the total volume of advertising is Among other things, ZenithOptimedia expects still growing at a steady pace, more in Norway 3000 the online share to double worldwide from than in Sweden, which has flattened out a 2006 to 2010. The total global advertising mar- bit more in the latest surveys. In Norway, the ket is not expected to be negatively affected by latest figures show that the growth in the past 04 05 06 07 the recent enormous pressure on the financial year looks like being seven per cent. Daily DISTRIBUTION OF REVENUES SCHIBSTED GROUP markets. Instead, ZenithOptimedia and other newspapers still hold a strong position in – FIGURES: NOK MILLION analysts are predicting a growth in the market Norway and comprise around 40 per cent of Other revenues in 2008 due to major events such as the the total media “cake”. Advertising revenues Olympic Games in Beijing, the presidential Single copy sales revenues and congress elections in the USA and the Subscription revenues 1.3 BILLION INTERNET USERS IN THE WORLD 12.7 MILLION READERS OF SCHIBSTED’S NEWSPAPERS – PER CENT

40 3000000

35 2500000

30 2000000 25

20 1500000

15 At the year-end 2007, there were 1 319 872 1000000 10 109 Internet users in the 500000 5 world. Of these, 38.7 per cent lived in Asia. Source: Internet World Stats ASIA SPAIN AFRICA RUSSIA FRANCE EUROPE ESTONIA NORWAY SWETDEN OCEANIA/ LITHUANIA AUSTRALIA CARIBBEAN MIDLE EASTMIDLE LATIN-AMERICA/ LATIN-AMERICA/ NORTH-AMERICA

INTERNET THE MAJOR WINNER

Online advertising just keeps on growing. At the same time, the Internet will surpass greater use of social network pages and quicker ZenithOptimedia expects the online share of the both radio and magazines in the ranking of the changes in budgets in favour of online advertising media “cake” to almost double on a global basis, largest advertising channels. In very mature versus other media channels. By 2012, so-called from 6.4 per cent in 2006 to 11.5 per cent in online markets, such as Norway and Sweden, its rich media advertising (multimedia advertising) 2010. This growth means that the money spent share is already at around 15 per cent and this is is also expected to account for more than half of on online advertising will increase by almost 70 expected to increase to more than 20 per cent all online advertising in European markets, while per cent over three years, with a 24 per cent in the space of three years. Online advertising traditional picture-based brand advertising will growth in 2008 alone. On a European basis, in Norway rose by 32 per cent between 2006 fall to almost 15 per cent after having had a share the online share of the media cake was 8 per and 2007. of almost 60 per cent in 2006. cent in 2007. What is interesting for Schibsted is that several of our new domestic markets are One of the driving forces behind the increasing below this average and their development rate growth in online advertising in Europe is a strong- is expected to approach more mature levels in a er increase in paid searches. In addition, there is few years’ time.

ONLINE CLASSIFIED ADS ROCKETING SKY-HIGH

Schibsted is one of the key classified ads com- papers linked to its classified ads operations Schibsted company Leboncoin.fr was also panies in Europe, where the online channel is and placing greater emphasis on developing the fastest growing search word on French the most important and fastest growing. Schib- existing and new websites. Google in 2007. sted’s classified ads websites in Europe publish a total of more than 4.4 million advertisements. TRIPLED IN SEVEN YEARS In Norway, 51 per cent of Internet users Including the operations in Latin America and Surveys show that more than 90 million visited online marketplaces like FINN.no in Asia, this figure is almost 5.1 million. Europeans used online classified ads pages the third quarter of 2007. Of these, 65 per last year, equal to 43 per cent of all online cent advertised large and small objects during The total revenues from online classified ads users. This number has more than tripled in the last 30 days of the year. Recruitment in Europe are forecast to exceed Euro 1.2 the past seven years. The most active users in websites, such as Schibsted’s InfoJobs.net billion by 2011. The volume of advertising in the major countries of Europe are to be found in Spain, generate both the greatest usage printed classified ads newspapers is decreas- in France, where more than 50 per cent of and the largest revenues in the classified ads ing and Schibsted has faced this trend by the Internet users surfed online classified ads category. closing down a number of the printed news- portals last year. SCHIBSTED ANNUAL REPORT 2007 –– BRANDS CONNECTED PAGE 39

SPAIN, FRANCE AND RUSSIA

Traditionally, Schibsted’s domestic markets ing national daily newspapers, are read by only have been Scandinavia and, most recently, the 4-5 per cent of the population. Baltic region, spearheaded by Eesti Meedia’s operations, but this picture is in the process The free newspapers, led by 20 Minutes, have of changing. Spain is now one of our most im- helped to make newspapers a permanent part portant new domestic markets while France is of the day for young people too. However, TV is just behind. Russia is also an interesting market undoubtedly the most popular medium. French- since it is one of the fastest growing advertising men spend an average of more than three and markets in the world. a half hours a day watching TV.

Spain’s media landscape is to a large extent ONLINE DEVELOPMENTS divided in the same way as the country’s divi- The Russian advertising market is one of the sion into regions. The traditional newspapers fastest growing in the world, with an average have primarily appealed to the upper strata of annual increase of more than 30 per cent from society. A number of free newspapers were 2001-2007. Half of the just over Euro 6 billion introduced to the market in 2000 and have cap- that was invested in advertising in 2007 went to tured strong positions. Schibsted’s 20 Minutos TV, with printed media and outdoor advertis- has become Spain’s most read newspaper. ing as the second and third most important channels. Explosive online developments are The Spanish TV market is becoming increas- expected over the next few years. ingly fragmented, both nationally and regionally. TV is in any case by far the largest advertising The media usage in Russia is primarily charac- channel – around 44 per cent of the approxi- terised by great regional differences. Russians mately Euro 8 billion invested in advertising have traditionally been eager newspaper each year goes to TV. readers, but newspapers’ popularity has fallen sharply since the early 1990s. TV has taken NEWSPAPERS – NOW A PERMA- over as the most important medium and the NENT PART OF THE DAY two state-owned TV channels, Pervyj Kanal France is one of the world’s largest advertising and RTR, are in reality the only media that are markets, with total advertising investments of available throughout this enormous country. just over Euro 11 billion each year. TV is the Internet penetration is increasing rapidly in the most important advertising channel, ahead largest towns. In St. Petersburg, Schibsted’s of newspapers and weekly magazines. As in free newspaper, Moi Rayon, has shown that Spain, newspapers have traditionally been read reader-adapted products which are distributed by the elite in France. Le Figaro and Le Monde, efﬁciently can help to reverse this trend. which have historically speaking been the lead-

Sources: Zenith OptiMedia, Jupiter Research, GroupM, TNS Gallup, IRM, World Press Trends, European Journalism Centre. FOUNDATION FOR GROWTH OUR MEDIA HOUSE STRATEGY: AN IMPORTANT FACTOR FOR SUCCESS

Our media house strategy has been an important reason for Schibsted’s success in Scandinavia. The media houses’ strength is their strong, well established position in the market, strong brands, wide reach and extensive online trafﬁc.

The journalistic platform is the main ele- portunities. Schibsted has utilised the most opportunity, adjustments should probably be ment. Our media houses publish in several obvious market opportunities but requires a made to the organisation. channels and online activities in response stronger collaboration in order to continue to a constantly more differentiated media growing where there is greater competition. EXPORTS AND NEW landscape. DEVELOPMENTS 60 PER CENT FROM Schibsted has developed its products based We believe that the media house strategy CLASSIFIED ADS on a growth potential in existing products will continue to be the basis for our future In Spain and France, where Schibsted’s and new markets. It currently looks as if growth in Scandinavia and other selected position is less well developed, there is a online classified ads are the most attractive geographical markets. need to increase the pace and focus. In order area for future product-focused growth. to develop further, the resources must be NEW CONTENT strengthened. There is a need to systemati- Historically speaking, adapting online clas- However, greater attention must be paid to cally raise the level of expertise and share sified ads concepts to international markets the main platform – the journalistic content. competence across functions and products in has also been successful. In addition, there This applies in both existing channels and all markets. is a potential in constantly developing new new ones, such as mobile phones and online products. Directory products such as Hitta, TV, and in other content verticals, such as Analysts predict that around 60 per cent of online communities like Nettby and news food, travel, sports and lifestyle. Schibsted’s revenues may come from online verticals such as e24 are examples of this. classified ads by 2010. In order to utilise this EXTENDED COLLABORATION Despite the fact that the media house strategy is a market strategy and not an organisational model, in reality Schibsted develops its media houses more or less in parallel. The current situation requires a more organised collaboration.

In Scandinavia and Estonia, where Schibsted has strong positions, extended collaboration is necessary, particularly on new projects, and there needs to be a focus on systematically identifying and utilising new market op- 24:00 The new media day is based on the “24 hours” survey conducted by TNS Gallup in October 2007. This is a time study thatshows people’s media habits, among other things. It is based on diaries kept throughout seven consecutive days. Use MEDIA USAGE for ﬁve minutes qualiﬁes for PER 24-HOUR PERIOD: registration. Respondents were COMPARED TO FORMER SURVEYS, THE TIME Norwegians of 15-70 years of age. SPENT ON THE INTERNET HAS INCREASED. THE THREE OTHER CHANNELS HAVE DECLINED 0 50 100 150 200 SLIGHTLY. SOURCE: TNS GALLUP FIGURES IN MINUTES Morning –– 06–09: Radio- listening time. The period of the 06: day when radio is the most used media channel. Radio is used a lot throughout most of the day. 09:00 However, many people also read 00 newspapers and use the Internet.

0 1000 2000 3000 4000 FIGURES: 1 000 function

09:0Daytime –– 09–16::0 The Internet-usage period. The time of the day when the Internet is the most used media channel. Radio and newspapers are also 16: channels that are used a lot during this period, while TV viewers have 00 not quite started the day yet.

0 1000 2000 3000 4000 FIGURES: 1 000 24:00 Evening –– 16–24 : The TV viewers’ time. Almost 98 per cent of those surveyed watched TV for at least ﬁve 00 minutes. Almost three million use the Internet, and although newspaper reading is the least popular pastime, this is the time of the day when newspaper readership reaches its peak.

0 1000 2000 3000 4000 FIGURES: 1 000 rest

Night –– 00–06: The TV viewers 06: are still going strong, but they only had to keep watching until ﬁve minutes after midnight to be registered. The Internet users are also awake. So maybe we can say that, thankfully, the ﬁgures are 00 quite low at that time of the day.

0 1000 2000 3000 4000 FIGURES: 1 000 the new media day

TheThhe useuse of the mediamedia has never been greater, butbut at tthehe ssameama e titimeme as it is increasing, people’speeople’s mmediaedia hhabitsabits are changing fast. That appliesapplies to bbothoth thethe choicecho of channels and timetime ofof daydaay whenwhhen theythey are used. The new mediamem dia dadayy in NNorwayorway is as follows.

Source: TNS Gallup 00:0: 000 SCHIBSTED ANNUAL REPORT 2007 –– BRANDS CONNECTED PAGE 41

DEVELOPMENT LIVING ORGANI- SATIONS ACHIEVE RESULTS

In 2005 and 2006, comprehensive strategy processes were carried out and several new meeting places were created across national and corporate boundaries in Schibsted. Throughout 2007, the work of implementing even more projects continued with undiminished strength.

We work every day on an extensive network ropean markets. A total of 140 managers have of programmes and development projects, all taken part in the management programmes as a way of achieving our ambitious goal of so far. In addition, for the first time more than becoming the most attractive media company 200 managers from all of Schibsted’s com- in Europe when it comes to innovation, panies worldwide were gathered for a major growth, markets, sales and the development conference. This conference will now be held of organisations, talents, leaders and employ- annually. Networking is one of the main goals ees. In 2007, a large number of managers of this meeting place. in Scandinavia were involved in developing Schibsted’s management principles, which There was a lot of activity across national and are closely linked to our vision. Our vision and corporate boundaries throughout the year, at management principles show the values that both a managerial level and in various profes- we want our operations to be based on and sional and product sectors. In last year’s our managers to strive to achieve. report, we pointed out that “the challenge will be to create new meeting places and arenas HUNGRY AND LISTENING LEADERS internally in order to utilise the strengths to CREATE GOOD EMPLOYEES be found in our media houses and companies Turning a vision and principles into action and to make it easy for ideas to trickle easily requires targeted efforts. A natural place to throughout the organisation.” This challenge start is to focus attention on managers. This is was accepted in 2007, a lot happened and why 45 managers took part in our manage- many pieces fell into place. ment programmes in 2007, and 100 managers completed a 360-degree assessment of their A GOOD PLACE TO WORK personal development measured according to Schibsted’s ambition is to become a leading our management principles. In 2007, we inter- company in Europe at developing organisa- nationalised the management programmes so tions that are continuously improving. In order that they reflect Schibsted’s presence in Eu- to achieve this, we need involved and satisfied THE GROUP MANAGEMENT

President and CEO Kjell Aamot

Executive vice Executive vice president president Economy/ Corporate Finance Governance Trond Berger Jan Erik Knarbakk

Executive vice Executive vice Executive vice president president president Sweden Norway/Group International Gunnar Strömblad Development Sverre Munck Birger Magnus*

* CEO’CEO’sCEO s depudeputyty manmanagerager

Senior vice president Human Resources Cathrine Foss Stene**

** Since 1 March 2008

STRONGLY INVOLVED TOP promising results and triggered a lot of enthu- MANAGEMENT siasm among the employees. In total, 150 of In addition to using Great Place to Work as a Schibsted’s employees have been involved in tool for developing a good working environ- the work so far. ment for the employees, we are working on an initiative to continuously improve work The visits to companies and pilot projects pro-cesses. The goal is to work smarter and have given us valuable knowledge and experi- reduce the time and effort wasted so that we ence which will be important as this work is can become the leading company in Europe in intensiﬁed in 2008. employees. In 2006, we took part for the ﬁrst our focus areas, which are innovation, sales, time in Great Place to Work, the world’s larg- markets and organisations. TOP-SPEED SALES DEVELOPMENTS est employee survey. Each year, more than The sales focus area was pointed out at an one million employees from 3 000 companies This initiative was heavily focused on in 2007. early stage as the spearhead in the work in 30 countries take part in this survey. In The top management of our largest newspa- of lifting Schibsted up to become a leading 2006, 1 400 Schibsted employees took part pers were strongly involved in the introduc- European media company. In 2007, the main and this number doubled in 2007. tory phase, among other things by visiting efforts concentrated on creating inspiration other companies that are good at continuous and incentives for increased sales, and on The survey has created a good starting point improvements. Pilot projects were carried out maintaining and building new arenas for devel- and a common framework for organisa- in Aftonbladet, VG, Aftenposten and Svenska oping a good sales culture at a top manage- tional developments, both locally and across Dagbladet. These pilot projects produced ment level, strategic and operational sales Schibsted company boundaries. Creating a good workplace requires a lot of effort, and Great Place to Work is an important tool for achieving this because it provides an insight into whether the employees enjoy their work and the extent to which they are proud of their company. Targeted efforts are made to bring about improvements. In 2007, four of Schibsted’s companies were on the list of the best workplaces in Norway and Spain respectively (FINN, Schibsted ASA, Scanpix and Infojobs). SCHIBSTED ANNUAL REPORT 2007 –– BRANDS CONNECTED PAGE 43

manager level and Key Account Manager the end of May 2008 in conjunction with a (KAM) level. In total 60 employees took part journalist conference where the goal is to cre- in the sales management programme and ate an arena for journalists and editors across 70 in the KAM programme. In 2008, we will national and media channel boundaries. also strengthen the training given to new sales personnel with the goal of all parts of TRAINEE PROGRAMME the sales organisation being able to acquire a Schibsted’s trainee programme was 10 years fundamental Schibsted perspective. old in the autumn of 2007. So far a total of 125 people have been recruited to Schibsted The Schibsted Sales Awards were one of via this channel. In 2006, we started a sales the major events in sales during the year. trainee programme in addition to the original More than 200 advertising salespersons in management trainee programme. This is a Schibsted took part in this competition, which specialised programme with a clear commer- created enthusiasm and a competitive instinct cial focus and an ambition to develop future in the sales organisations and helped to make commercial managers and key personnel in the best performances visible and selected Schibsted. The first group of sales trainees each month. The salesperson of the year, completed the entire programme in the first sales manager of the year, sales organisation quarter of 2008. The internationalisation of the of the year, sales department of the year and management trainee programme is continuing performance of the year were all chosen at a in 2008. In 2007, we hired our first non-Scan- major awards ceremony in February 2008. dinavian trainees from Spain and Estonia.

JOURNALIST AWARDS In the autumn of 2007, Schibsted was chosen It is not only the sales personnel who get as Norway’s most attractive workplace in the attention in Schibsted. Annual awards for WorkRep2007 survey. The survey is based on journalistic work have also been established. what around 2 000 students at 50 universities Journalists and photographers compete and colleges in Norway consider to be the across Schibsted channels to win the Journal- best companies to work for. ism Awards for the best story, best innovation and best photo. The prizes are awarded at

the programme for key account managers (KAM), in which 52 per cent of participants 41% were women. A total of 180 people took part in various of all the participants in Schibsted’s programmes last year. Overall, 400 people development programme were women have participated. The trainee programme in 2007. This is a higher share than in is 10 years old, making it the oldest previous years. The highest female share programme. The others were established 3 of all the programmes was achieved by to 5 years ago. RESPONSIBILITY AND CREDIBILITY OUR MOST IMPORTANT CORPORATE SOCIAL RESPONSIBILITY

The media have important tasks and a lot of inﬂuence in a modern society. That, in turn, makes great demands on the media themselves and also on their owners. Responsibility and credibility are key words for a serious media group – in relation to users, customers, employees, shareholders and the rest of society. The very ﬁrst in the row of corporate social responsibilities is, however, the publishing responsibility: to safeguard freedom of speech and editorial freedom and integrity.

Editorial independence, credibility and quality means that Schibsted may be the publisher make up the Schibsted Group’s publishing and owner of media which state views that credo. This is a proud tradition. In today’s are based on different philosophies and which listed media group, the value base is stipulat- proclaim their views in editorials based on ed and anchored in Schibsted ASA’s articles different political starting points. of association. This plays a key role in the exercise of the ownership and management This is also the case in practice: Schibsted’s of the Schibsted Group. This proud tradition large Scandinavian wholly owned newspapers imposes obligations: the Group management have basic political attitudes which range has a responsibility to ensure that Schibsted from social democracy via liberal views to as a media owner and publisher lives up to its conservatism. There is only one ideologi- publishing principles and guidelines. cal limitation in the Group’s value base: it The objects clause of the articles of associa- is unthinkable for Schibsted to own media tion state: “The shareholders are to make which proclaim opinions that do not support a conditions suitable so that the Company runs democratic view of society. its information operations in a way that fully safeguards editorial freedom and integrity. THE EDITOR’S RESPONSIBILITY The requirement of editorial freedom and Schibsted’s attitude to the editorial activities integrity shall be normative for all the media of the media owned by the Group is that the and publications in the Schibsted Group’s editorial work must take place in accordance Norwegian and foreign companies.” with the legislation and ethical regulations of each individual country – based on the DEMOCRACY AND DIVERSITY Group’s attitude to editorial independence One of the cornerstones of Schibsted’s vision stated in the articles of association. is that the Group must contribute to democracy and diversity through having respect for The editor-in-chief is personally and fully the fact that different media are based on responsible for the contents of his/her me- different publishing and political platforms dium. The editor is independently in charge and have distinctive characteristics. This of his/her editorial staff on the basis of the SCHIBSTED ANNUAL REPORT 2007 –– BRANDS CONNECTED PAGE 45

medium’s articles of association and incor- Norway, Sweden, Estonia, Lithuania, France, poration documents. Special routines have Spain and Russia. been developed for delegating the editorial responsibility and carrying out the editorial Through Schibsted Editors’ Forum, the Group work throughout the media day. These rules has achieved a European network of leading have been prepared in each company and Schibsted editors. Common challenges, the may vary slightly, depending on the nature of exchange of ideas and fundamental problems the individual medium. The editor-in-chief’s in each country and across national bounda- ﬁnal responsibility for the contents applies, ries are on the forum’s agenda. The forum is however, in each of Schibsted’s media. also a contact point for individual editors who feel the need for this. The Editors’ Forum can 2 000 JOURNALISTS IN SEVEN also, when it wants to, state pan-European COUNTRIES editorial views to the Group’s management Today, Schibsted owns a variety of media and governing bodies. Schibsted looks on imparting editorial content to society in a the formation of the Schibsted Editors’ Forum number of countries. The Group employs as a clear strengthening of its publishing more than 2 000 journalists. Teaching new traditions. editorially based media and their employees about Schibsted’s fundamental attitudes to editorial activities is an important task.

As part of this work, the Schibsted Edi- tors’ Forum was established in the autumn of 2007. When it started up, this editors’ forum included around 30 editors-in-chief, deputy editors-in-chief and news editors from

MANAGES SCHIBSTED’S LARGEST SHAREHOLDING whose long-term ﬁnancial developments were healthy. This is also stated in the objects clause of the Trust’s articles of association.

A trust is now managing Schibsted ASA’s Nagell-Erichsen decided to transfer his largest shareholding since the company’s largest personal and ownership influence over the Schibsted Group to the Tinius Trust in May shareholder and first chairman of the board, Tinius 2006. He was the chairman of the Trust’s Nagell-Erichsen, died on 12 November 2007. The board until his death. Tinius Trust now exercises the influence as an Following Tinius Nagell-Erichsen’s death, his owner that Nagell-Erichsen had in the company. former shareholding is managed in accordance with the Trust’s articles of association by When Schibsted was converted from a the Schibsted Group to the Trust, either upon the board he himself chose: the chairman of privately owned family company into today’s his death or when he so decided. the board is Ole Jacob Sunde, the founder and listed Schibsted ASA, Tinius Nagell-Erichsen, chairman of the board of Formuesforvaltning who had a shareholding of 26.1 per cent, Nagell-Erichsen’s reason for establishing ASA. Sunde is also the chairman of Schibsted was given rights in the company’s articles the Trust was to prevent his shareholding in ASA’s board. The directors of the Tinius Trust of association which were equivalent to the the Schibsted Group from being split up. He are Per Egil Hegge, who has been a journalist influence that a so-called negative majority stated that he wanted to use his influence and editor in Aftenposten for many years, and gives. In 1996, Nagell-Erichsen established to ensure that Schibsted remained a media John Rein, a lawyer admitted to the Supreme the Tinius Trust. His expressed objective was group characterised by free, independent Court and a partner in the law firm of Wikborg to transfer his influence as a shareholder in editorial staffs, credibility and quality and Rein. MORE CORPORATE SOCIAL RESPONSIBILITY GENDER EQUALITY AND ENVIRONMENT

GENDER EQUALITY managers increased significantly in all of them larly vulnerable, but active HSE work is being The Schibsted Group is a knowledge group - compared to 2006. carried out. No accidents or major incidents we make our living from skilled employees at were reported in 2007. In total, five minor all levels in each of the Group’s companies. However, there is still some way to go before injuries were registered in Schibsted’s three Our employees’ expertise, creativity and will- it can be said that full equality has been printing companies, a reduction of almost 30 ingness to constantly develop are some of the achieved. per cent compared to the two previous years. prerequisites for our success. Ensuring that women and men have the same development WORKING ENVIRONMENT EXTERNAL ENVIRONMENT opportunities is a clear goal for the Group and Schibsted wants to provide secure jobs Schibsted’s companies’ operations comply an important part of the Group’s corporate where people enjoy working and there is with prevailing environmental regulations. social responsibility. good collaboration between colleagues and Newspapers are produced digitally until they between the management and other staff. go to the printing works. Schibsted owns 50 per cent of the shareholder-elected Efforts to improve the workplace environment three printing works: Schibsted Trykk and Har- directors on the Group’s board are women. take place through the working environment stad Tidende Trykk in Norway and Kroonpress This percentage is the same if we include committees in each company, for example, in Estonia. Printing operations are basically a the employee representatives. The Group and the continuous HSE (Health, Safety and relatively clean industry. Where polluting sub- management works systematically to ensure Environment) work being carried out. Regular stances are used, the processes take place in a balance between the genders, not least in working environment surveys are conducted closed systems. the Group-run development programmes. and provide a basis for improvements. In 2007, 41 per cent of the participants in Almost all waste is sorted. Schibsted Trykk, these programmes were women. Since the During the past few years, Schibsted ASA for example, sorts 98 per cent of all its waste. programmes started, 37.5 per cent of the and an increasing number of its subsidiaries Special waste is collected by authorised carri- participants have been women. Schibsted’s have taken part in the Great Place to Work ers. The printing works at Nydalen in Oslo is a trainee programmes have had 125 partici- Institute’s surveys. Many initiatives have been member of Green Point and pays an environ- pants in total. 46 per cent of the participants implemented in several companies in the mental fee which ensures that all packaging is on the management programme have been wake of these results. In 2007, 2 500 Schib- properly dealt with and all external suppliers women, while this figure is 44 per cent for the sted employees took part in this survey. Four are inspected. The printing works have car- sales programme. Group companies ended up on the lists of the ried out projects with the aim of introducing 20 best companies in Norway and Spain. environmental improvements. A number of Schibsted subsidiaries are also making active efforts to ensure equal terms, In 2007, so-called “360-degree assess- The three printing works used a total of equal access to managerial positions and ments” of Schibsted’s managers were also 93.3 thousand tons of paper, 2 008 tons of equal conditions in connection with recruit- introduced, starting with the Group’s top printer’s ink and colours and 26.1 GWh of ment and development activities. Several management. These assess the managers in electricity. The consumption of paper and companies have their own gender equality relation to Schibsted’s own managerial values. printer’s ink increased by four per cent, plans and conduct surveys based on a gender All Schibsted’s managers will gradually be reflecting a corresponding increase in the equality perspective. assessed using this management tool. production volume. The energy consumption remained at the 2006 level. Schibsted Trykk The four large media houses are actively work- In 2007, a scheme for giving notice of internal describes its environmental factors in its own ing to recruit skilled women to various posi- misconduct (whistleblowing) was established. environmental report each year. tions. At the year-end, 48 per cent of Svenska Dagbladet’s managerial positions were filled The Group’s overall sickness absence rate is The newspaper companies in Norway and by women, while this figure was 42 per cent reduced to less than six per cent. The level of Sweden collect for unsold newspapers for in Aftonbladet, 35 per cent in VG, and 25 per injury in the Group’s companies is low. The recycling. cent in Aftenposten. The percentage of female printing companies’ operations are particu- SCHIBSTED ANNUAL REPORT 2007 –– THE GROUP COUNCIL SIDE 47 the group council

Schibsted’s Group Council was established in The Council is led by a working committee con- viewpoints, the Group Council is very valuable 2004. The objective of the Group Council is to sisting of four members. Prior to the Council’s in that it allows employees from several coun- strengthen the dialogue, contact, coopera- meetings, the group management and working tries and companies to meet each other and tion and trust between the management and committee discuss which issues are to be the management. The sense of community is employees across company and national raised. The employees’ representatives meet strengthened. boundaries. on the day before the actual Group Council meeting and discuss and exchange experi- MARTIN ULLTIN Schibsted’s Group Council was established in ences at an internal meeting. Chairman of the Group accordance with the rules governing the es- Council tablishment of European Works Councils. The The group management and employee repre- –– Member of Boards of Group Council consists of 29 representatives, sentatives meet at the Group Council meeting. Directors elected by and from among the employees. The chairman provides a summary of the situ- –– Board member of Aftonbladet 2001- Most of them come from Norway and Sweden, ation from the employees’ viewpoint, while the –– Board member of Aftonbladet’s Salaried Employ- but Denmark and Estonia are also represented. CEO reports on the Group’s situation. ees’ Union 1998-2001 Efforts are being made to include representa- –– Chairman of Aftonbladet’s Salaried Employees’ tives from Spain and France. The employee representatives have asked for Union 2001- sufﬁcient time for questions and discussions –– Project manager Aftonbladet’s Media Centre Aftonbladet’s Martin Ulltin (picture) was and their feedback on this has been positive. In 1993- elected as the Council’s new chairman, suc- addition to helping to disseminate good infor- –– Service manager Aftonbladet 1990-1993 ceeding Aftenposten’s Håkon Letvik. mation and allowing the exchange of ideas and –– Lower secondary school teacher 1979-1990 group employee representatives

Since October 2007, Schibsted has had two important, non-Norwegian operations – which full-time Group employee representatives. is currently Sweden. Their task is to safeguard all the employees’ interests in relation to the Group management Marianne Falk, a journalist in Svenska Dagb- in issues that are dealt with at a Group level ladet, was elected by the Swedish unions and and which may be of importance to the em- Group Council members. She has been the ployees of the Group as a whole. These two vice chairman of Schibsted’s Group Council, have the status of observers who are entitled deputy chairman of Svenska Dagbladet’s to speak and submit proposals at Schibsted journalists’ union and on the board of Fojo ASA’s board meetings and they work closely (the Institute for the Further Education of with the Group Council, directors elected by Journalists), as well as being a member of and from among the employees, and the local the board and negotiation committee of the trade unions in Schibsted companies. Swedish Union of Journalists.

Previously, the Norwegian unions elected Tom Berby, a journalist in VG Multimedia, was four directors and one alternate director to elected by the Norwegian unions. He has rep- –– Tom Berby, journalist in VG Multimedia Schibsted’s board. In the spring of 2007, the resented the employees on both VG’s board –– Marianne Falk, journalist in Svenska Dagbladet unions in Aftenposten, VG and Schibsted and Schibsted’s Group board, been the chair- Trykk (printing works) entered into a new man of VG’s Editorial Staff Union, a member absence from their ordinary jobs and an office agreement governing employee representa- of the board and negotiation delegation of the in Schibsted’s Group management premises tion in the Group. According to this, the Norwegian Union of Journalists and on the in Oslo. Norwegian unions elect two directors and one board of the Journalisten magazine. alternate director to the Group board and also The Group Council meeting in October 2007 elect one Group employee representative. An The Group employee representatives are discussed the expectations regarding Group additional Group employee representative is elected for two years and must not normally employee representatives. These can be to be elected outside Norway, in the country remain in office for more than three con- briefly summed up as information, openness where Schibsted has most of its, or its most secutive periods. They are given a leave of and the creation of networks. shareholder information

Schibsted is a listed company, and Schib- pany like Schibsted also has an important role payable on 21 May 2008 to those registered sted’s board considers it essential that to play in democracy. Financial independence as shareholders on the general meeting date shares in the company are perceived to be and a good financial position are essential for of 8 May 2008. an interesting investment alternative. ensuring confidence in and the credibility of A competitive rate of return is to be based on our various media. SHARE PRICE DEVELOPMENTS healthy finances. The goal is to safeguard the The Schibsted share is listed on Oslo Stock return through long-term growth in the share A stable increase in dividend combined with Exchange. The share price was NOK 223 at price and dividend. The company’s shares an opportunity to repurchase shares is regard- the beginning of 2007 and had increased to should, to a largest possible extent, achieve ed as a suitable tool for adjusting the capital NOK 235.50 by the year-end. Including rein- a price that reflects the company’s long-term structure. Schibsted places emphasis on a vested dividend, a return of 7.4 per cent was earnings ability. fixed dividend payout ratio, which over time is achieved in 2007. The Oslo Stock Exchange to be 25-40 per cent of the Group’s cash flow Benchmark Index (OSEBX) rose by 11.5 per The strategy and vision that Schibsted’s board per share. In addition, the Board wants the cent during the same period. The DJ Stoxx has adopted entail rapid changes and high dividend to be stable over time. In years when Media Index, which is a broad benchmark of level of development of the Group’s opera- economic conditions are weak, the dividend the media sector in Europe, fell by 5.8 per tions. Schibsted’s capital structure must be level will be maintained as long as the Group’s cent during the same period. sufficiently robust in order for us to maintain capital structure allows this. the financial freedom of action required by our The Schibsted share price fluctuated a lot in growth ambitions. REPURCHASE OF SHARES 2007. On 8 May, it reached a historical peak The general meeting has authorised Schibsted’s of NOK 315 and its highest ever quoted clos- Schibsted is based on positions in the Scandi- board to repurchase up to 10 per cent of the ing price, NOK 308. Its lowest closing price in navian media market and its centre of gravity shares in the company. The repurchases will be 2007 was NOK 223 on 5 January. is the newspaper sector. These operations are made in the market over time and must be seen affected by cyclical fluctuations at the same in connection with Schibsted’s dividend policy, On average, 207 000 Schibsted shares were time as strong brands, such as VG, Aften- investment opportunities and long-term per- traded daily in 2007, 15 per cent less than in posten and Aftonbladet, contribute to securing spective regarding the Group’s capital structure. 2006. At the year-end 2007, 51 per cent of long-term stable positions. In its shareholder In 2007, the company’s shareholding of its own the Schibsted shares were owned by foreign- policy resolution, the Board also points out that shares increased by 0.9 million. resident shareholders. One year earlier, interesting opportunities for a company that this figure was 55 per cent. The number of has retained its capital strength may also arise Communication with owners, investors and shareholders increased from 3 688 to 3 775 during downswing periods. analysts in the Norwegian and international in 2007. markets is a highly prioritised task for Schibst- STABILITY ed’s management and Investor Relations (IR) EMPLOYEE SHARE SCHEME Blommenholm Industrier, which is in turn department in order to ensure that relevant Schibsted has various incentive programmes controlled by the Tinius Trust, is Schibsted’s information is given to the market at the right which give employees an opportunity to take main shareholder – something which gives the time. This is intended to form the basis for the part in the value creation which is taking place Group long-term stability. Another conse- correct pricing of the Schibsted share. in the Group. In 2007, employees were each quence of this is that the number of shares is- given the chance to buy shares with a market sued will be stable over a long period of time. Schibsted publishes all financial information, value of NOK 7 500 at a 20 per cent discount, Accordingly, the earnings from operations, such as presentations, quarterly and annual in accordance with the Norwegian Tax Act’s combined with loans, will be the most impor- reports, stock exchange notices, etc, on its regulations. A quarter of the employees of- tant financing source for growth in the form website: www.schibsted.com/ir. fered the chance to buy shares did so. of acquisitions or efforts in new ventures. This indicates that freedom of action should DIVIDEND be ensured through a relatively large equity The board has proposed paying a dividend for and a low debt/equity ratio. A media com- 2007 of NOK 6.00 per share. The dividend is SCHIBSTED ANNUAL REPORT 2007 –– SHARHOLDER INFORMATION PAGE 49

140

130

120 6

5 110 4

100 3 *)

2 90

1 80 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 96 97 98 99 00 01 02 03 04 05 06 07 SHARE PRICE DEVELOPMENT IN 2007 DIVIDEND PER SHARE (NOK) Schibsted *) Dividend for 2007 proposed by the board. Hovedindeksen (OSEBX) Nasdaq Composite DJ Stoxx Media

FINANCIAL CALENDAR 2008 10 LARGEST SHAREHOLDERS AS AT 31 DECEMBER 2007 General meeting 8 May 2008 at 4.30 pm Shareholding (%) Nominee 1st quarter 2008 accounts to be published on 9 May 2008 1 Blommenholm Industrier AS 18 083 520 26.11 2nd quarter 2008 accounts to be published on 15 August 2008 2 State Street Bank and Trust Co. 8 857 185 12.79 X 3rd quarter 2008 accounts to be published on 7 November 2008 3 JPMorgan Chase Bank 3 770 283 5.44 X 4 Folketrygdfondet 3 750 050 5.42 INVESTOR CONTACTS 5 Schibsted ASA 3 235 336 4.67 Trond Berger, Executive Vice President & CFO 6 Mellon Bank AS 2 858 509 4.13 X E-mail: [email protected] 7 NWT Media AS 1 601 637 2.31 8 Skandinaviska Enskilda Banken 1 243 184 1.80 X Jo Christian Steigedal, IR Ofﬁcer 9 Orkla ASA 1 040 000 1.50 E-mail: [email protected] 10 Morgan Stanley & Co. Inc. 893 555 1.29 X

Tel: +47 23 10 66 00 % of foreign-resident shareholders 51.15% Fax: +47 23 10 66 01 No. of shareholders: 3 775 Total no. of shares issued 69 250 000 Of which own shares 3 235 336

RISK AMOUNT (ESTIMATED ADJUSTMENT TO THE TAX BASIS) PER SHARE AS AT 1 JANUARY (NOK) Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Risk amount 4.25 4.96 6.23 1.98 1.68 4.79 1.19 3.27 1.21 (3.18) (4.11) – corporate governance

Schibsted’s corporate governance is based on Amendments to the Articles of Association GROUP EMPLOYEE Schibsted’s publishing tradition and the value require the approval of more than 75 per cent REPRESENTATIVES base that has always been key to the Group’s of the share capital represented at the Gen- A Group employee representative scheme operations. eral Meeting. The same applies to resolutions was also established in 2007. One Group to transfer Aftenposten’s and VG’s publisher employee representative has been elected to One of several cornerstones of Schibsted’s rights. The Group’s publishing companies also represent Norway while the other represents vision is that Schibsted is to be a group have provisions in their articles of association Sweden. Both attend Board meetings as that contributes to democracy and diversity to safeguard their editorial freedom. observers. The Group employee representa- through its integrity and editorial independ- tive scheme is described in further detail on ence. Schibsted ensures diversity in the Any shareholder owning at least 25 per cent page 47. media through its editorial independence and of the shares in the company is entitled to respect for the fact that different media are appoint one director directly. Blommenholm THE EDITORS based on different publishing and political Industrier AS owns 26.1 per cent of the An international editors’ forum has been viewpoints and have individual characteristics. shares in Schibsted and is the company’s established in the Group and is described in largest shareholder. The only voting A share further detail on page 45 of the annual report. Editorial integrity, independence, credibility in Blommenholm Industrier AS is owned by One of the editors has been elected as an and quality are crucial for all the media and the Tinius Trust. This share was transferred by observer on the Board. publications in the Schibsted Group’s Norwe- Tinius Nagell-Erichsen in a deed of gift dated gian and foreign companies and are so central 11 May 2006. The Tinius Trust is described in THE BOARD’S WORK to the Group’s corporate governance that more detail in the report on corporate social The Group’s annual strategy meeting takes they are also stated in Schibsted’s Articles of responsibility. place in the spring and forms the basis for the Association. Group’s budget processes.

Schibsted’s corporate governance is also KEY BODIES As a management tool for use in its continu- based on the Norwegian Corporate Govern- The company is organised as a public limited ous monitoring and control of the Group’s ance Recommendations (”the Recommenda- company, with the General Meeting as its operations, the Board receives detailed tions”). The main principles of Schibsted’s supreme authority, a Board of Directors, an reports on the current situation from the corporate governance are to be found in this external auditor and a Chief Executive Officer management. These include financial reports chapter of the annual report. It has been more who is responsible to the Board of Directors. showing the Group’s main figures, the status natural to discuss other parts of the Recom- Schibsted is exempt from the rules regarding of commercial factors, financial market mendations elsewhere in the annual report. the establishment of a corporate assembly. information and a status report for each business area. The Board has established routines SHAREHOLDERS THE GROUP’S BOARD OF to monitor and control the Group’s ongoing Schibsted has one class of shares, with equal DIRECTORS projects. The creation of an Audit Committee rights attaching to each share. The number of directors was reduced in 2007 has strengthened this function in the Group. so that the Board now has eight members. The Board seeks to obtain a detailed presen- Due to Schibsted’s publishing responsibili- Six of these are elected by the shareholders, tation of one of the Group’s key companies ties and role in society as a media company, while two are elected by and from among at each board meeting so that it has a closer Schibsted’s impartiality and integrity have the employees of the Group’s Norwegian relationship with the Group’s individual com- been guaranteed by restrictions on ownership companies. panies and their managers. Furthermore, the and voting rights stipulated in the Articles of Board seeks to regularly combine its meetings Association. with a visit to one of the Group’s subsidiaries outside Oslo. This normally takes place SCHIBSTED ANNUAL REPORT 2007 –– CORPORATE GOVERNANCE PAGE 51

at the same time as the strategy meeting. In situation. In addition, it is positive that the addition, one of the Board’s meetings in the Board is occasionally invited to professional autumn is held in Stockholm. seminars arranged by the management, with external and internal speakers, in addition to THE ANNUAL EVALUATION OF THE the Board meetings. BOARD’S WORK The Directors’ Report contains a presentation THE BOARD’S AND COMMITTEES’ Compensation committee of the Board’s members and of their experi- INDEPENDENCE –– Alexandra Bech Gjørv ence and expertise. See page 58-59. In order to strengthen and utilise the direc- –– Eva Lindqvist –– Ole Jacob Sunde tors’ expertise in and experience of the At the year-end, the Board evaluated its work Schibsted Group’s operations, some of the and way of working. This formed the basis directors are also members of the Group’s Cato A. Holmsen is the executive chairman for the Nomination Committee’s work on the subsidiaries’ boards. Among the shareholder- of the board of FSN Capital Partners, which is annual Board evaluation. elected Group directors, this currently applies this fund’s management company. Christian to Ole Jacob Sunde, who is a director of Ringnes controls the company which leases The Board considers itself to be well func- Aftonbladet, Karl-Christian Agerup (alternate Eesti Meedia’s head office in Tallinn to Schib- tioning, with directors whose expertise and director and regularly attending director sted. Some of the directors and alternate backgrounds complement each other. The since Tinius Nagell-Erichsen’s death), who is directors are directors of the Tinius Trust. The fact that the Board now has fewer directors a director of Aftenposten, Monica Caneman, board of the Tinius Trust currently consists and regularly attending representatives has who is a director of Svenska Dagbladet, and of Tinius Nagell-Erichsen, Ole Jacob Sunde, led to better discussions. A smaller forum also John A. Rein (deputy alternate director), who John A. Rein and Per Egil Hegge. The alternate assigns more responsibility to the individual is a director of VG. The Audit Committee’s director, Karl-Christian Agerup, has been and means that each director becomes more external member, Cato A. Holmsen, is a direc- elected as the personal alternate director for actively involved in the discussions. The tor of Aftenposten. Ole Jacob Sunde in the Tinius Trust. frequency and location of the Board meetings functions well. In 2007, eight ordinary meet- Following the death of Tinius Nagell-Erichsen, THE USE OF COMMITTEES IN THE ings were held, including the strategy meeting the board of Blommenholm Industrier consists BOARD’S WORK which lasted for two days and also encom- of Ole Jacob Sunde and John A. Rein. Ole As Schibsted has grown in size and extent passed a company visit. Jacob Sunde is the chairman of Schibsted’s and become more and more international, board. John A. Rein is the deputy alternate the Board’s scope of work and the complexity Meetings that are not listed on the meeting director for the shareholder-elected directors of the issues have increased. In the Board’s schedule may be attended by telephone. Infor- on the Group’s board. Through the law firm view, the creation of a Compensation Com- mation to the Board is also sent out by e-mail. of Wikborg, Rein & Co, John A. Rein provides mittee and Audit Committee has improved legal services to Blommenholm Industrier and the Board’s preparatory work and discus- There is a great need to be professionally up- the Tinius Trust. John A. Rein is also a director sions of complicated issues relating to these dated in a media group that is in a constantly of the Tinius Trust. For more information on committees’ areas of work. These committees changing technological landscape. The board the Trust, see page [ ] of the annual report. function well and the interaction between the portal which has been established has made Formuesforvaltning, of which Ole Jacob Sunde committees and Board is good as regards the board work simpler and more efficient and is a major shareholder, has a management both the exchange of information and division gives the Board easier access to up to date in- agreement with Blommenholm Industrier. of responsibilities. The committees provide formation. It also allows the directors to study an opportunity for important issues relating to issues themselves – such as framework condi- Blommenholm Industrier holds a 0.6613% corporate governance and internal controls to tions, the industry’s market and competition stake in FSN Capital Limited Partnership II. be dealt with thoroughly, and give the Board corporate governance

more time to discuss fundamental and stra- THE NOMINATION COMMITTEE tegic issues. At the same time, the Board is Following the death of Tinius Nagell-Erichsen, aware that the formation of committees may Schibsted’s Nomination Committee consists lead to the Board having less responsibility for of Supreme Court Attorney Lars A. Chris- issues and that committees should therefore tensen (chairman), Gunn Wærsted (Nordea) only be used when the complexity and scope and Nils Bastiansen (Norwegian National of the issue so require. Insurance Scheme Fund). The Nomination Committee is elected by the Annual General THE BOARD’S COMPENSATION Meeting for two years at a time. Lars A. Chris- COMMITTEE tensen is a partner in the law ﬁrm of Wikborg, The Compensation Committee was estab- Rein & Co, which has a relationship with lished in 2004 and consists of Ole Jacob Blommenholm Industrier and the Tinius Trust Sunde as its chairman, Eva Lindqvist and through John A. Rein. Alexandra Bech Gjørv. Like the Board, the Compensation Committee is up for election A management secretariat function prepares Audit committee each year. issues for the Nomination Committee. The –– Christian Ringnes CEO and Chairman of the Board attend the –– Monica Caneman –– Cato Holmsen The Compensation Committee prepares Nomination Committee meetings as required. issues for the Board relating to the remunera- The Nomination Committee’s mandate is tion of the Group management and senior mainly stated in §10 of Schibsted’s Articles At these meetings, the auditor reviews the management in key subsidiaries. The Group of Association. The Nomination Committee’s issues that have been assessed during the CEO attends meetings of the Compensation most important task is to ensure that the year and answers questions from the Board. Committee unless his own remuneration is Board is continuously evaluated in relation to The auditor is also present at the company’s to be discussed. A management secretariat the challenges facing the Group at any time. General Meeting and comments on the audi- function is used to prepare issues for the The Nomination Committee’s report on the tor’s report that has been provided and invites committee, in addition to other internal and work carried out in 2007 is published on the shareholders to ask questions relating to external expertise. page 52 of the annual report. the audit.

The work includes issues relating to salaries, SCHIBSTED’S GROUP COUNCIL The total auditors’ fee paid to Ernst & Young bonuses, options, severance pay, early Schibsted’s Group Council was established in by the Group in 2007 amounted to NOK 10.6 retirement pensions and retirement pensions. 2004, based on the regulations governing the million, of which NOK 0.8 million related to The Committee’s mandate can be seen on Establishment of European Works Councils. auditing services provided to Schibsted ASA. Schibsted’s website (www.schibsted.com). NOK 8.9 million of the total fee related to the An overview of the prevailing guidelines The purpose of the Group Council is to pro- mandatory audit. Other services provided by relating to compensation/remuneration is mote development, motivation, joint respon- Ernst & Young have been invoiced separately provided in the Board’s declaration regarding sibility and mutual trust between the manage- and in 2007 these amounted to NOK 1.8 this, which is included as part of the Directors’ ment and employees. The Group Council is to million for the Group and NOK 0.3 million Report on page 65 of the annual report. ensure active cooperation and be a forum for for Schibsted ASA. This assistance is mainly information, discussion and dialogue within linked to questions relating to taxation and CREATION OF AN AUDIT COMMIT- the Group. The Group Council is a supplement charges and necessary auditor’s confirma- TEE IN SCHIBSTED to the employees’ representation in their own tions in connection with corporate changes in The Board’s Audit Committee was established companies. A more detailed presentation of the Group. Some of the Group’s subsidiaries following the Annual General Meeting in May the Group Council is given on page 47. use other auditing firms. Auditors’ fees to 2007 and consists of Monica Caneman as these firms amounted to a total of NOK 9.0 its chair, in addition to Christian Ringnes and AUDIT million in 2007, of which NOK 6.3 million Cato A. Holmsen. Cato A. Holmsen is an Ernst & Young is Schibsted ASA’s auditor. related to mandatory audits. Otherwise refer external member. The company’s auditor is present when the to note 8 to the accounts, where the nature preliminary consolidated accounts are submit- and extent of these services is described in The Audit Committee’s main tasks are linked ted to the Group’s Board by the management greater detail. to auditing and internal controls and to fol- and sometimes also in connection with the lowing up important projects in the Group. final presentation of the accounts. The audi- In the Board’s opinion, the consulting services The Committee’s mandate can be seen on tor regularly attends meetings of the Audit provided by Ernst & Young do not affect the Schibsted’s website (www.schibsted.no). Committee. auditor’s impartiality. SCHIBSTED ANNUAL REPORT 2007 –– THE NOMINATION COMMITTEE’S REPORT PAGE 53 the nomination committee’s report

THE NOMINATION COMMITTEES interview candidates for the Board of Direc- Karl-Christian Agerup has broad experience of Composition and election tors. Lars A. Christensen invoiced a total of starting up, operating and investing in new me- Following the death of Tinius Nagell-Erichsen, NOK 93 750 for this work in 2007. dia and has wide-ranging technology expertise, the Nomination Committee has consisted of a factor which will be important for Schibsted Lars A. Christensen (chairman), Gunn Wærsted The volume of work dealt with by the Nomina- in the future. When assessing the Board other- and Nils Bastiansen (formerly the regularly tion Committee varies from year to year. The wise, the Nomination Committee has weighed attending alternate member).The Nomination Nomination Committee therefore proposes up the need for continuity against the Board’s Committee’s members are up for re-election making the fee payable to its members a need for renewal over time. In its assessment, at this year’s Annual General Meeting and fixed fee per meeting of NOK 15 000 to the the Nomination Committee has also taken into are to be elected for two years. According to Nomination Committee’s chairman and NOK consideration the Board’s own evaluation of its the company’s Articles of Association, three 10 000 to the other members. work and had talks with the directors – includ- members and one regularly attending alternate ing the employee-elected directors. On this member are to be elected to the Nomination THE GROUP BOARD basis, the Nomination Committee nominates Committee. The Nomination Committee be- Composition Marie Ehrling as a new director. Alexandra lieves there is no need for an alternate member The General Meeting decided to reduce the Bech Gjørv is resigning from the Board. Marie and therefore proposes winding up the alter- number of directors in 2007. The Board now Ehrling has broad international management nate member scheme. Should this proposal be consists of eight directors: six shareholder- experience from large public and private sector agreed to at the General Meeting, this means elected directors and two directors elected organisations and has been on the boards of that the second sentence of §10, item 3 is to from among the employees of the Group’s major companies. The Nomination Committee be amended in line with this (refer to the notice Norwegian companies. Three alternate direc- is of the opinion that her expertise, background of the General Meeting). tors have been elected for the shareholder- and experience will be important resources to elected directors while four alternate directors draw on in future Board work. The Nomination The company’s 14 largest shareholders were have been elected for the employee-elected Committee believes that the Group Board will asked on 21 November 2007 to propose shareholders. The directors are presented on thus include a wide, good mix of expertise, candidates for the Nomination Committee. pages 50-59 of the annual report. experience, age, gender and education. A more Based on this, the Nomination Committee’s detailed presentation of the candidates is en- members are nominated for re-election for a Election of shareholder-elected directors closed with the notice of the General Meeting new two-year term of office. A brief presenta- and alternate directors and is also published on Schibsted’s website. tion of the candidates is enclosed with the The Board’s shareholder-elected directors and notice of the General Meeting. alternate directors are up for re-election each THE GROUP BOARD’S ALTERNATE year. The Nomination Committee is therefore DIRECTOR SCHEME Fees payable to the Nomination Com- continuously working on Board recruitment The Nomination Committee has assessed mittee and evaluating the Board’s work. the need to maintain the scheme involving The Nomination Committee’s fees are deter- alternate directors for the shareholder- mined in advance for one year at a time at the The company’s 14 largest shareholders were elected directors. The directors are presumed company’s General Meeting. In 2007, the fee asked in a letter dated 21 November 2007 for to prioritise their board appointments and paid to the Nomination Committee’s chairman their views on the Board’s composition and experience has shown that alternate directors was NOK 60 000, while the other members, whether they wished to propose any candi- do not often attend board meetings. The including the regularly attending alternate dates. The Nomination Committee nominates alternate directors thus have little board work member, received NOK 35 000. In 2007, Karl-Christian Agerup as a new director. continuity, making it difficult to participate the Nomination Committee’s chairman was Karl-Christian Agerup has been an alternate actively in ongoing discussions and individual paid separately by the company for providing director on the Board since 2004 and has matters. advice and chairing the company’s General attended Board meetings regularly since the Meetings (two in 2007) and for travelling to death of Tinius Nagell-Erichsen. the nomination committee’s report

The Nomination Committee has therefore site and the committees are also described of the Board and to NOK 265 000 for the decided that the alternate director scheme in greater detail on pages 51 and 52 of the other directors. should be wound up, and proposes that this is annual report. done after this year’s Annual General Meeting. FEES FOR WORK ON COMMITTEES This does not require any amendment to the In the Board’s evaluation of its own work, The Nomination Committee proposes continu- company’s Articles of Association, since it is the work in the committees is pointed out as ing to pay a separate fee for the work done up to the General Meeting to decide whether being positive and important when compli- on the Group Board’s committees. The fees or not alternate directors are to be elected to cated issues within the committees’ areas of payable to the Compensation Committee’s the board (§8 of the Articles of Association). work are to be dealt with by the Board. The members are currently NOK 60 000 to the Nomination Committee sees the need for the Committee’s chairman and NOK 35 000 to THE DIRECTORS’ INDEPENDENCE Group Board to be able to prepare complicat- the Committee’s other members. The Nomi- Information on the directors’ business rela- ed issues in committees, but also underlines nation Committee also proposes increasing tionships with shareholders or other parties the Board’s overall responsibility for the these fees slightly: to NOK 65 000 for the linked to these or with Schibsted is stated on assessments and decisions made, including Committee’s chairman and NOK 38 000 for page 51 of the annual report. The Nomination those relating to the issues prepared by com- the Committee’s other members. Committee does not believe these relation- mittees. The Nomination Committee wishes The experience gained from establishing the ships make the directors less independent. As to draw attention to this issue since it makes Compensation Committee indicated that the regards Blommenholm Industrier, in particular, demands on how the committees prepare and Audit Committee members would have to the Nomination Committee believes that this present the issues to the Group Board. carry out extensive, time-consuming work company’s representation on the Group Board during the start-up phase. At last year’s An- reflects in a well-balanced way the ownership FEES PAYABLE TO MEMBERS OF nual General Meeting, therefore, the fee pay- of Schibsted and the right to elect directors THE GROUP BOARD able to the Audit Committee’s chairman was which, according to Schibsted’s Articles of During the last term of office, the Chairman set at NOK 100 000, while the fee payable to Association, belongs to shareholders that own of the Board was paid a fee of NOK 625 each of this committee’s other two members more than 25 per cent of the company. 000 while the other directors received NOK was set at NOK 60 000. Based on the Audit 250 000. Up to NOK 50 000 may be paid to Committee’s experience after its first year in GROUP BOARD DIRECTORS’ persons living outside Oslo to compensate operation and the plans for work in 2008, the MEMBERSHIP OF SUBSIDIARIES’ them for extra travelling time. The decision Nomination Committee proposes maintaining BOARDS on this is made by the Nomination Commit- the 2007 fee levels. The Nomination Committee is aware that tee’s chairman following a recommendation some of the members of the Group Board are by the Chairman of the Group Board. In 2007, DETERMINATION AND PAYMENT also on the boards of the subsidiaries. The Monica Caneman and Eva Lindqvist were OF FEES Nomination Committee believes this is useful paid an extra remuneration of NOK 50 000 All the fees payable to Schibsted’s corporate when key issues are to be discussed and has each. Both live in Stockholm. The fee paid to bodies are determined in advance for one no objections to this practice continuing. the Board’s alternate directors consisted of a year at a time at the Annual General Meeting basic fee of NOK 35 000 and a fee per meet- and are paid at the end of the term of office, THE COMPENSATION COMMITTEE ing of NOK 15 000. ie, at the next year’s Annual General Meeting. AND AUDIT COMMITTEE The Group Board established a Compensation In order to achieve more even develop- Committee in 2004 and an Audit Commit- ments in the fees, the Nomination Com- tee in 2007. Both these committees prepare mittee proposes that the directors’ fees for issues for the Group Board. The committees’ the forthcoming General Meeting period be mandates are published on Schibsted’s web- increased to NOK 660 000 for the Chairman boardbrands of directors’ reportconnected Schibsted is focusing on building strong media houses in itsannual domestic markets and utilising its core expertise to develop new positions in other markets. Itreport achieved an operating 2007 profit (EBITA) of NOK 1 177 million in 2007. the board of directors’ report 2007

HIGHLIGHTS IN 2007: Schibsted is a Scandinavian media group whose head ofﬁce is in — Schibsted is continuing to build strong media houses Oslo. Although most of its operations are linked to Norway and Swe- in its domestic markets and to utilise the Group’s core expertise to establish new positions in other markets. den, the Group has operations in 21 countries.

— The advertising market developed positively in both During the past year, Schibsted has increased its level of ambition Sweden and Norway in 2007. from that of creating strong positions in the Scandinavian media market to building further positions in the European market. Schibsted’s — The Group achieved an operating profit before impair- ambition is to be the most attractive media group in Europe. ment of goodwill and other revenues and expenses (EBITA) in 2007 of NOK 1 177 million (1 013 million), producing an operating margin of 9 per cent (9%). The Schibsted prioritises growth in countries where it can create media underlying growth in the Group’s operating revenues houses. Schibsted has considerable operations in several European was 9 per cent (after adjusting for acquisition and sales countries, especially Norway, Sweden, Estonia, Spain and France. of subsidiaries and currency effects). The Group is developing several new core products in order to complement its media houses. In addition to this, Schibsted will utilise — Schibsted continus it’s strategy of focusing on organic market developments and its specialist expertise to capture positions growth and acquisitions. Organic projects debited the in more peripheral markets, currently markets such as Italy, Austria, 2007 operating profit by NOK 590 million (384 million), Russia and Singapore. of which other expences, NOK 49 million, is included in other expences. ANALYSIS OF THE 2007 ANNUAL ACCOUNTS — The Group’s online activities achieved good results in Schibsted reports its consolidated accounts in accordance with the 2007. Their revenue grew by 39 per cent (after adjust- International Financial Reporting Standards (IFRS). The main figures ing for acquisitions and sales of subsidiaries) and their are shown below: share of the Group’s operating profit (EBITA) came to 45 per cent. Figures in NOK million 2007 2006 — The Group has freed up capital and strengthened its Operating revenues 13 610 11 648 financial position through the sale of shareholdings and Operating profit1) 1 177 1 013 real estate. The sale of subsidiaries, joint ventures, tan- Impairment loss goodwill (8) (10) gible fixed assets and intangible assets produced NOK Other revenues and expenses 77 1 492 705 million in 2007. Profit before taxes 1 028 2 413 Net income 737 2 225 — The Group has increased its stake in Stavanger Aften- 1) Operating profit berfore impairment of goodwill and other revenues and expenses blad (74.6 per cent) and Metronome Film & Television (100 per cent) The operating revenues increased by 17 per cent in 2007 compared — The Board proposes distributing dividend of NOK 6.00 to 2006. After adjusting for the acquisition and sale of subsidiaries (5.00) per share for the 2007 financial year. and currency effects, the underlying operating profit grew by 8.7 per cent. — Schibsted has strong positions in print newspapers in Norway, Sweden and Estonia. Aftenposten and Svenska The 2007 accounts were affected by the Group’s investments in new Dagbladet achieved particularly good results in 2007. activities relating to free newspapers, digital TV, directory services, — The establishment of Media Norge was approved by the search services and the internationalisation of classified ads services, Media Ownership Appeals Board on 26 February 2008. among other things. These investments made a negative contribution to the 2007 accounts of NOK 590 million (384 million), of which NOK 49 million is included in other expences. SCHIBSTED ANNUAL REPORT 2007 –– BOARD OF DIRECTORS’ REPORT PAGE 57

Other revenues and expences consisted in 2007 of the sale of RISK ANALYSIS Apotekergaten 10 in Oslo, Jenagade 22 in Copenhagen, Metronome’s Liquidity advertising operations and Scanpix Sverige, as well as various The Group’s capital structure did not change significantly in 2007. restructuring costs relating to Schibsted Classified Media (formerly Schibsted’s long-term financing, which currently includes syndicated Trader), Aftonbladet and the Sesam search service. and bank loans, aims to ensure that the Group has sufficient financial flexibility. Schibsted’s goal is to have a total liquidity reserve equal to The Group’s tax cost came to NOK 291 million (188 million). This at least 10 per cent of its estimated revenues for the next 12 months. produces an effective tax rate of 28 per cent for 2007. At the end of 2007, Schibsted had net interest-bearing debt of NOK THE BALANCE SHEET 4.1 billion and a long-term liquidity reserve of approximately NOK 1.7 At the end of 2007, the Group had total balance sheet assets of NOK billion. 16.0 billion (16.5 billion). Non-current assets comprise the largest item of NOK 12.2 billion (11.9 billion). The carrying amount of the A considerable proportion of the Group’s debt falls due for payment Group’s goodwill and other intangible assets is NOK 8.1 billion (8.0 in 2008. Schibsted postponed the refinancing of the bridge loan billion). The carrying amount of the goodwill can be justified for all the that was raised in connection with the acquisition of Trader Classi- investments. fied Media in 2006 awaiting clarification of the Media Norge issue. Refinancing will therefore take place in 2008. Despite more unstable The amount of NOK 2.2 billion (1.2 billion) has been recognised as in- credit markets, the refinancing risk is considered to be low. vestments in shares and associates. The increase compared to 2006 is primarily due to the purchase of additional shares in Stavanger Market risk Aftenblad (NOK 726 million) and the share of the 2007 results of Schibsted runs a considerable cyclical risk linked to its advertising associates (NOK 149 million). The market value of the Group’s invest- revenues, especially relating to recruitment and real estate advertis- ments exceeds their carrying amount. ing in its print newspapers. Advertising revenues made up 50 per cent (44) of Schibsted’s total revenues in 2007. Of the advertising In 2007, the Group invested NOK 1.2 billion (5.2 billion) in shares and revenues, recruitment advertising in a print newspaper (Aftenposten) NOK 619 million (498 million) in tangible fixed assets and intangible produced NOK 391 million while real estate advertising produced assets. The main share items relate to: NOK 340 million. A greater share of the revenue is linked to advertising revenue from online activities and some of these activities are — Stavanger Aftenblad, from 32.4 to 74.6 per cent (associate) assumed to be less exposed to cyclical fluctuations. The share of the — Metronome – from 65 to 100 per cent (subsidiary) advertising revenue that comes from online activities will increase in — Harstad Tidende/Brønnøysund Avis – increased stake (subsidiary) the years to come. — STO-CPH Production AB 100 per cent (owned by Metronome) (subsidiary) Although Schibsted’s base currency is Norwegian kroner (NOK), its operations outside Norway mean that the Group is also exposed to In 2007, Schibsted bought 861 714 of its own shares (net). At the fluctuations in the exchange rates of other currencies, mainly the year-end, the Group owned 3 235 336 of its own shares, equal to 4.7 Euro, Swedish kroner (SEK) and Estonian krone (EEK). Schibsted has per cent of the shares issued. currency risks linked to both balance-sheet monetary items and the translation of net assets in foreign entities. The Group makes use The Group’s other long-term liabilities increased by NOK 0.6 billion of loans in foreign currencies and forward exchange contracts to from the year-end 2006 to the year-end 2007. Most of this increase reduce its currency risk. The loans in foreign currencies and forward is related to the rise in the estimated market value of the minority’s exchange contracts are managed actively in accordance with the put option relating to Schibsted’s subsidiary Anuntis Segundamano Group’s strategy in order to reduce the currency risk. Holdings. OLE JACOB SUNDE ALEXANDRA BECH GJØRV BERIT SIMENSTAD Chairmanhai of the Group’s board Vicece president of StatoilHydro’s New Energy Head of department in Aftenposten with The founderund of Formuesforvaltning ASA and Departmentrtm (the equivalent position in Hydro responsibility for the REISE (travel) and BOLIG chairman of its board since 2000. Established from 200505 until the merger with Statoil), (housing) sections. She has been a journalist Industrifinans FoForvaltning ASA (1983), of which senior vice presidentpre of Corporate Human with Aftenposten since 1989. Board member he was general managerman until 2000. Formerly Resources in NorskNor Hydro ASA (2001-05). of Schibsted since May 2007. Member of the a consultant with McKinseycKin & Co. (1980-83). Personnel directorr NNorsk Hydro (2000-01). Media Norge project board since June 2006. Various directorships, includingclu of the Tinius Assistant director of strategystr & organisational Director of Aftenposten 1999-2007. Chairman of Trust. Sunde has a Master’s degreede in business development, Hydro Automotiveto Structures the board and before that director of SKUP (the economics from the University of FFribourg, (1998-00), company secretary,ary Norsk Hydro Norwegian foundation for investigative journal- Switzerland in 1976 and graduated frofrom the ASA (1995-98), lawyer with Norskors Hydro USA, ism) from 1991 until 1998. Member of the SKUP Kellogg School of Management, Northwesternwes Inc, New York (1993-95), legal adviservis with Ed- award jury 2003-2006. Executive committee University (USA) (with distinction) in 1980. wards & Angell, Boston (1992-93), associatesso member and deputy chairman of Aftenposten’s lawyer with the law firm of Schjødt (1991-92).1-9 editorial union at the beginning of the 1990s. EVA LINDQUIST She was educated at the College of Journalism Formerorm senior vice president of Mobile Business in Oslo and has studied criminology and political in TeliaSonera,elia president and head of Business science at the University of Oslo. Area TeliaSoneraeli International Carrier, senior vice presidentide and head of Business Area Telia Equity, managingag partner Sandberg Trygg, various positions inn the Ericsson Group (1981-1999). Chairman of the boboard of ELFA AB and director of Vin&Sprit AB, Securitas Systems AB, Trolltech ASA, Transmode AB and Nordia Innovation AB. MBA, Melbourne University, Aus- tralia (1992). MSc, Linköping University (1981). SCHIBSTED ANNUAL REPORT 2007 –– BOARD OF DIRECTORS’ REPORT PAGE 59

AUDUN SOLBERG KARL-CHRISTIAN AGERUP Duty officer and deputy manager of VG’s editorial Deputy Chairman of the Group’s board desk. Employed by VG since 1995. Has worked as Northzone Ventures, founder and partner editor, head editor and duty officer at the editorial (1994- ). HUGIN AS, founder and CEO desk, head of news with the news department (1995-1999). McKinsey & Co, Associate and duty officer in the sports department. Has (1991-93), Engagement Manager (1993-94). also been affiliated with the consumer and re- Millipore Corp, Boston, USA, Corporate Planner search department and Rampelys (entertainment (1990-91). Deputy chairman of the board of section). Journalist with Fremtiden (1991-1995). Norfund. Massachusetts Institute of Technol- Chairman of VG’s editorial union (2001-2002). ogy (MIT) – Alfred P Sloan School of Manage- Member of the national committee of the Norwe- ment, Master of Science in Management gian Union of Journalists (2003- ). Deputy chair- (1990). Copenhagen Business School, Master’s man of the Oslo Union of Journalists (2002-2003). degree in business economics/HA (1988). Regularly attending alternate board member on the Schibsted Group’s board (2005-2007). Mem- ber of the Schibsted Group Council (2004-2006). Chairman of the Norwegian Union of Journalists’ editorial advertising committee (2006-2007).

CHRISTIAN RINGNES

CEO and largest shareholder (1984- ) of Eien- domsspar AS/Victoria Eiendom AS. Consultant (1981-82) and project manager (1983-84) with McKinsey & Company, INC – Scandinavia. Assistant to area manager, Nordic Countries, Manufactures Hanover Trust Company (1978-79). Chairman of the boards of NSV-Invest AS, Dermanor AS, Mini Bottle Gallery AS and the Association of City Folk in Oslo Centre (Foreningen Byfolk Oslo Sentrum). Director of Norsk Scania AS, Thor Energi AS, Nationalthe- atret (deputy chairman) and Oslo City’s Town Architecture Council (Oslo Bys Råd for Byarkitektur). MBA from Harvard Business School, Boston, USA (1979-81). Master’s degree in economics from École des Hautes Études Commerciales, University of Lausanne (1975-78).

MONICA CANEMAN

Former deputy CEO of SE-Banken (1997-2001), employed by SE-Banken since 1977. Chairman of the board of Linkmed AB, Point Scandinavia AB and SOS International AS and director of Nordisk Energiförvaltning ASA, Svenska Dagbladet AB, SJ AB (Swedish State Railways), Poolia AB, Orexo AB, Point Scandinavia AS, Xponcard AB, EDB Business Partner ASA, Citymail AB and Investment AB Öresund. Graduated from the School of Management in Stockholm (1976). the board of directors’ report 2007

Schibsted has floating interest rates on its long-term debt. The Group –– The internationalisation of classified ads services (CompraVenta. has considerable pension liabilities which provide a natural hedging com, Leboncoin.fr, Willhaben.at, Subito.it) of its floating debt since the present value of the liabilities decreases if the interest rate rise. This reduces the need to hedge the interest In September 2007, CompraVenta and Segundamano in Spain were rate on long-term interest-bearing debt. merged to form a common online service. The Group sold TV7.

Schibsted uses newsprint and is therefore exposed to price changes The investments in organic projects are managed on a portfolio basis, in the paper market. A change in price of 1 per cent alters the with quarterly reporting based on both financial and risk factors. They Group’s raw materials costs by around NOK 10 million per annum. are monitored to ensure that all the projects comply with the Group’s The price of newsprint in Norway and Sweden is negotiated with the strategy and that the portfolio of projects has the correct risk com- suppliers each year and is already fixed for 2008. position. This again is intended to ensure that the Group prioritises correctly when investing, improve the Group’s ability to execute the At the end of 2007, the Group had limited exposure to the stock individual projects, and maintain the goal of an organic growth rate market and thus only a slight risk of loss. of 7 per cent over time. The risk classification is determined on the basis of various commercial risk considerations. Since many of the Group’s products are sold on the basis of advance payments (subscription sales) or cash payments (single copy sales), THE GROUP’S ONLINE ACTIVITIES there is little credit risk associated with the Group’s circulation rev- The operating profit before impairment of goodwill and other revenues. Deposit schemes and credit insurances have been established enues and expenses (EBITA): for much of the Group’s advertising revenue. Figures in NOK million 2007 2006 Organic projects Operating revenues 2 695 1 654 Schibsted is focusing strongly on expansion through organic growth. Operating expenses (2 024) (1 301) Schibsted’s investment projects are not defined as R&D projects Depreciation and amortisation (146) (65) in an accounting sense and are thus not recognised in the bal- Operating profit (EBITA) 525 288 ance sheet. However, Schibsted’s subsidiaries invest considerable amounts in organic projects and these investments are charged to The Group’s online activities are continuing to develop strongly the Group’s profit and loss account. The projects are investments in and accounted for 45 per cent (28 per cent) of the Group’s operating new operations and future growth. The organic projects are intended profit (EBITA) in 2007. Revenue from these activities grew by 39 per to strengthen the Group’s position in a rapidly changing media world. cent compared to 2006 (before the acquisition of subsidiaries). The We define these projects as being primarily aimed at new markets or Group’s investments in new activities debited the online activities’ the development of products in which the Group has not previously EBITA by NOK 261 million (250 million). The Group’s online activities held a position. The projects are characterised by a short develop- are developing strongly. FINN, Blocket/BytBil and VG Multimedia ment phase and a high level of marketing to build market positions, achieved particularly good results. including users and readers. BUSINESS AREA ANALYSIS – NORWAY, SWEDEN The organic projects debited Schibsted’s operating results by NOK AND INTERNATIONAL 590 million (384 million) in 2007, of which NOK 49 million is reported as other excpences. The largest projects in 2007 were: The Norway business area –– Search and directory services in Norway and Sweden (Sesam, the The operating profit before impairment of goodwill and other rev- Sesam directory, Hitta) enues and expenses (EBITA) for selected companies in the Norway –– Free newspapers (Punkt SE, Moi Rayon) business area: –– TV (the digital TV channel TV7) SCHIBSTED ANNUAL REPORT 2007 –– BOARD OF DIRECTORS’ REPORT PAGE 61

Figures in NOK million 2007 2006 Other Aftenposten Media House 452 298 2007 was a good year for Schibsted’s publishing operations, espe- Aftenposten newspaper 221 152 cially for Schibsted Forlag AS, which achieved an operating margin of Aftenposten online 245 148 11 per cent (9 per cent). This conﬁrms Schibsted Forlag AS’s position VG Media House 365 290 as one of the most proﬁtable large publishing houses in Norway. VG newspaper 241 209 VG online 119 82 The regional newspapers increased their advertising revenues in Schibsted Søk (154) (126) 2007 and achieved better results than in 2006.

The Aftenposten media house The Sweden business area In 2007, the advertising revenues of Aftenposten’s print newspaper The operating profit before impairment of goodwill and other increased by 13 per cent compared to 2006. Both the real estate revenues and expenses (EBITA) for selected companies within the and recruitment markets contributed to this growth in revenue. The Sweden business area: circulation revenues increased by 4 per cent compared to 2006 as a result of an increase in the subscription price. The morning edition’s Figures in SEK million 2007 2006 circulation increased by 1 per cent compared to 2006, while the Aftonbladet Media House 208 316 circulation figures for the afternoon and Sunday editions fell by 6 per Aftonbladet newspaper 243 254 cent and 1 per cent respectively. Aftonbladet online 356 178 Aftonbladet organic projects (319) (160) Within Aftenposten’s online activities, FINN’s revenue increased by Svenska Dagbladet Media House 47 34 45 per cent in 2007. FINN’s operating margin came to 43 per cent (37%). In 2007, revenues from recruitment advertisements increased The Aftonbladet media house by 54 per cent, real estate 55 per cent, car 27 per cent, travel 94 per The Aftonbladet Group’s results were affected by investments in cent and miscellaneous 69 per cent. directories (hitta.se), free newspapers and TV channels, etc, in 2007. These activities debited the 2007 operating profit by SEK 319 million The VG media house (160 million). VG’s print newspaper increased its advertising revenues by 11 per cent compared to 2006. This was due to good advertising markets The Aftonbladet print newspaper produced slightly weaker results in 2007. The weekday circulation fell by around 5 900 (1.9%) in 2007 than in 2006. The newspaper’s advertising revenues fell by 7 per compared to 2006. cent in 2007 compared to the previous year. The weekday circulation declined by 28 000 and the Sunday circulation fell by 19 500 VG’s online activities, VG Nett including Nettby, increased their rev- compared to 2006. Aftonbladet increased the price of its newspaper enues by 44 per cent compared to 2006 and achieved an operating and the Sunday magazine as from June 2007 and this had a positive margin of 43 per cent in 2007 (42 per cent). effect on the results. The circulation revenues rose by 6.2 per cent compared to 2006. Online search services Schibsted restructured its search services in Norway and Sweden in Punkt SE’s readership increased but it takes time before this results 2007 to make annual savings of NOK 130 million for Schibsted Søk in increased revenues. Aftonbladet has pulled out of TV7, which was (the effect on the Schibsted Group is around NOK 90 million). The launched in the digital terrestrial network in October 2006. search services will be continued and will remain part of Schibsted’s ambition to be one of the leading media groups in Europe. The results of the Aftonbladet Group are affected by costs relating to directory services (hitta.se), the aforementioned organic projects (Punkt SE and TV7) and other factors. In 2007, these activities deb- the board of directors’ report 2007

ited the operating profit by SEK 319 million (160 million). The International business area The operating profit before impairment of goodwill and other The advertising revenues from Aftonbladet’s online activities (Afton- revenues and expenses (EBITA) for selected companies within the bladet Nya Medier, Blocket, BytBil and Hitta) rose by 36 per cent International business area: compared to 2006. Of Aftonbladet’s total advertising revenues, 55 2007 2006 per cent (49 per cent) came from online activities. Blocket developed 20 Minutes 1) (0.6) (2.6) well throughout 2007 as regards the number of advertisements and Baltics 2) 62 33 unique visitors. Its operating profit increased considerably compared Schibsted Classified Media 1) 38.9 42.7 to 2006. 1) Figures in EUR million 2) Figures in NOK million

Hitta.se has had a strong development in traffic in 2007 and is now 20 Minutes Swedens fifth largest website with more than 2.3 million visitors. BytBil The 20 Minutes companies’ revenue increased in 2007 compared to produced its best result ever. Aftonbladet Nya Medier had a weaker 2006: by 14 per cent in Spain and 5 per cent in France. Developing year than in 2006, but produced one of the best results of the Schib- 20 Minutes’ online activities has been and will be given high priority sted Group’s online newspapers. in both countries. In the last part of 2007, 20 Minutes in France produced strong results while 20 Minutes in Spain achieved slightly The Svenska Dagbladet (SvD) media house weaker results. Although Spain’s GDP growth is expected to continue The SvD print newspaper’s advertising revenues rose sharply in 2007: to be good in 2008, the outlook is rather more uncertain due to the by 16 per cent compared to 2006. The circulation revenues grew cooling down in the real estate sector. The operating profit of 20 by 3 per cent in 2007 compared to 2006. This increase in revenue Minutes in Spain is on a level with that achieved in 2006. In France, produced the newspaper’s best ever operating profit in 2007. the newspaper has improved its results during the year, especially for the print edition. SvD’s online operations, (svd.se, tasteline.se, E24.se, Jobb24.se, MinTur.se) made a slight loss for the year due to increased invest- 20 Minutes’ operations reached several milestones in 2007. 20min- ments in the services. utes in France surpassed the sports newspaper L’Equipe and is now France’s most read newspaper, with 2.4 million readers each day. Other This newspaper made an operating profit for the first time ever in Metronome Film & Television obtained a new management in 2007 2007. In Spain, its sister newspaper, 20minutos, widened the gap and has worked to strengthen its core activities. The advertising film between it and its competitors and reinforced its position as Spain’s operations were sold in 2007 and the drama operations, which are most read newspaper with its 2.5 million readers each day. subject to a pressure on the margins, were in part closed down and in part integrated into the TV production operations at the end of 2007. Based on these strong offline positions, both companies also Metronome Film & Television bought the Swedish production compa- achieved good online developments in 2007. At the end of 2007, ny Stockholm – København Produksjon AB, which develops and owns 20minutos.es was Spain’s third most visited news website, while its own formats, in 2007. In September 2007, Schibsted increased its 20minutes.fr is the fourth most visited news website in France. With a stake in Metronome Film & Television AB from 65 per cent to 100 per targeted focus on up to date news and interactivity with users, these cent after buying out the other owner, Endemol Finance BV. companies hope to further close the distance between them and their competitors in 2008. Sandrew Metronome produced an operating profit that was slightly weaker than in 2006. The Baltic region and Russia Among the Group’s operations in Estonia, Eesti Meedia increased its advertising revenues by 35 per cent in 2007 compared to 2006. Its operating profit rose by 27 per cent. All Eesti Meedia’s publications SCHIBSTED ANNUAL REPORT 2007 –– BOARD OF DIRECTORS’ REPORT PAGE 63

developed well: increased advertising revenues, a stable circulation Secondamano in Italy produced weak results (both for the print and and higher circulation revenues as a result of higher prices. online versions) and the Group has initiated specific measures to reverse this situation. Subito.it was launched in February 2007 and is The TV channel Kanal2 reinforced its position as the number one a purely online-based general marketplace website based on Swedish measured in viewer figures in 2007. Its advertising revenues rose by Blocket.se’s concept and technology. This has had the most traffic of 50 per cent compared to 2006 and its operating profit more than the general marketplace websites since September. doubled, producing an operating margin of 31 per cent (18 per cent). In Q4 2007, La Centrale, the French market leader for print and In Lithuania, the weekly magazine Zmones continued to increase its online car ads, merged with Caradisiac, the French online car portal circulation, readership and advertising revenues. The free newspaper that was owned by SPIR. Caradisiac is the largest online car forum 15 Minutes covers the three largest cities and holds the number one in Europe. Together, these companies have a strong, leading position position in each of them. The tabloid LT made a negative contribution among the car-related classified ads and information websites in to the results of NOK 18 million (22 million) in 2007. Changes were France. made to the organisation at the end of 2007 and the product was further improved due to better printing quality in January 2008. Other international classified ads In France, Schibsted launched a joint venture with SPIR in 2006 - Autoplius is the car section of Lithuanian classified ads website Plius. leboncoin.fr – a classified ads service based on the Blocket model. lt. Autoplius was launched in 2003 and incorporated into Schibsted This classified ads service has experienced very strong growth in Baltics in 2007. This website has around 350 000 unique visitors each its volume of advertisements and traffic since it started up and has week. become the most popular online general marketplace in France in a short space of time. The Group’s weekly free newspaper in Russia, Moi Rayon, is the most read newspaper in St. Petersburg, with 787 000 readers. In Moscow, Austrian classified ads service willhaben.at was launched in January the circulation at the year-end was 503 000, but surveys show that 2006 (a 50 per cent joint venture with Styria Medien), based on the the number of readers is much lower. FINN platform. This classified ads service has experienced good growth in its volume of advertisements and traffic since it started up. Schibsted Classified Media (formerly Trader) The migration from print to online activities continued in 2007. In Bolha.com is a new classified ads service in Slovenia. The service has total, the online activities’ revenue grew by 48 per cent in 2007. The more than 500 000 unique users a month, representing more than share of the companies’ operating profits (EBITDA) produced by the half of the total number of Internet users in Slovenia. online activities was 84 per cent in 2007 (63 per cent). Mudah.com.my is the latest addition to the Schibsted classified ads The revenue from print products fell by 21 per cent in 2007. This is family. Mudah was launched in Malaysia in December 2007 and is a more than the Group expected. Measures are being implemented to copy of our Swedish service, blocket.se. After just one month, almost slow the decline in revenue and adapt the print editions’ cost base, 20 000 classified ads have been published. especially in Spain and Italy. Several publications were closed down in Spain in 2007, equivalent to just over five per cent of the 2006 MEDIA NORGE revenues. There are 66 fewer titles in January 2008 (40) than there The Media Ownership Appeals Board decided on 26 February 2008 to were in January 2007 (106). allow the formation of Media Norge. This means that Schibsted and InfoJobs.net expanded strongly once more in 2007, with a growth in the Media Norge parties will continue with the work and process of revenue of 72 per cent. Other online activities in Spain also produced establishing Media Norge within the frameworks determined by the sound results, with an organic growth in revenue of 45 per cent. Norwegian Media Ownership Act and the assumptions on which the Appeals Board has based its decision. the board of directors’ report 2007

–– Schibsted’s shareholding in Stavanger Aftenblad will be converted is based on the Group’s long-term strategic forecasts. The Group’s into shares in Media Norge and will thus be covered by Schib- economic and financial position is good. sted’s contractually agreed duty to reduce its shareholding in Media Norge. Working environment –– Schibsted will sell its 34.3 per cent shareholding in Adresseavisen ASA At the year-end, Schibsted had approximately 9 000 (8 500) em- and will reduce its stake in the Harstad Tidende Group to 40 per cent. ployees, around 6 400 (5 800) of whom worked outside Norway. The Group’s sickness absence rate came to just under 6 per cent of the FUTURE PROSPECTS Group’s total working hours and has fallen slightly from a stable level The advertising markets in Scandinavia remain good. Apart from the of 6 per cent over the past few years. The Group’s printing works recruitment advertising market in Norway, there are few signs of a at Nydalen, where the average age of the employees is almost 50 slowdown. However, the cyclical uncertainty has increased. years, has implemented measures to reduce its high rate of sickness absence. In 2007, the printing works’ sickness absence rate was 11 The macroeconomic outlook in Spain has worsened in a short space per cent, a decline from 17 per cent in 2004. of time, primarily as a result of a cooling-down in the real estate sector. Schibsted will mainly notice this in the classified ads area, Of the Group’s companies, printing companies’ operations in particu- especially in the print editions. The online operations are continuing lar involve a certain risk of injury. At the year-end, Schibsted owned to experience strong growth due to the structural migration from print three newspaper printing works: Schibsted Trykk in Oslo, Harstad publications. Tidende Trykk in Harstad and Kroonpress in Tartu, Estonia. In 2007, a total of five occupational injuries resulting in absences were recorded In the Norway business area, FINN’s revenues and profits are at these printing works. These were minor personal injuries. No ac- expected to achieve good growth in 2008. Aftenposten believes cidents were registered at any of the printing works in 2007. the advertising market will continue to be good, but there is greater uncertainty linked to this, especially in relation to the recruitment Schibsted aims to be a leading company in Europe when it comes to market. VG expects its circulation to continue falling, but 2008 developing talent, managers and employees. The work of attracting started off well as regards advertising sales. talented people, developing good managers and creating compe- tent organisations is given priority by the senior managements of In Sweden, Aftonbladet’s circulation is expected to continue declin- the Group and the subsidiaries. Competitive conditions and good ing. Punkt SE will continue to significantly debit the operating profit development opportunities are part of this prioritisation. The working but its operating revenues are expected to grow. environment is considered to be good.

Blocket/BytBil’s strong developments look likely to continue. Hitta.se External environment is expected to continue growing rapidly and make an operating profit The production of the Group’s newspapers is a digital process up in 2008. From a sales point of view, 2008 started off well. to the printing stage and only affects the external environment to a slight extent. A newspaper printing works has a relatively neutral Over the past few years, Schibsted has incurred high costs linked effect on the environment and the chemicals used to manufacture to organic projects. A considerable reduction in this type of cost is the newspapers are dealt with as special waste and recycled as far as planned for 2008. These costs will be around NOK 350-400 million possible. Agreements with approved transport companies ensure that (550 million), including some additional online projects. special waste is collected safely. Normal operations do not involve any danger of emissions from the printing plants. Going concern The printing works consumed 93.3 (89.6) thousand tonnes of paper, In accordance with section 3-3a of the Norwegian Accounting Act, 2 000 (1 935) tonnes of printing ink and approx. 26.1 (26.2) GWh of the Board confirms that the Group is a going concern. The financial electricity in 2007. statements for 2007 have been prepared on this assumption, which SCHIBSTED ANNUAL REPORT 2007 –– BOARD OF DIRECTORS’ REPORT PAGE 65

The Group’s newspaper companies in Norway and Sweden arrange for unsold newspapers to be returned and resold for recycling. Schibsted’s foundation is based on strong positions in the Scandina- vian media market, especially in the newspaper sector. The earnings The Group’s other operations only pollute the environment to a very and cash flows from these operations are characterised by cyclical limited extent. fluctuations but Schibsted’s strong brands indicate a long-term, stable position. During downturns, interesting opportunities may open Gender equality up for a company that has maintained its capital strength. Schibsted makes its living from skilled managers and employees. It is essential to the Group’s continued success that women and men are In 2005, Schibsted’s Board adopted a new vision and strategy that ensured the same development opportunities. allow for the fact that the media sector is changing rapidly. This strategy involves an increased rate of change to and development of Several of the Group’s subsidiaries are making active efforts to the Group’s operations. Schibsted’s capital structure must be suffi- ensure that men and women are ensured equal terms, equal access ciently robust so that we can maintain the financial freedom of action to management positions and equal conditions in connection with re- required by the Group’s growth ambitions. cruitment and development activities. The Group management is also working systematically to ensure a balance between the genders, In future, Schibsted will place greater emphasis on having a fixed among other things through Group-run development programmes and dividend payout ratio that, over time, is to be 25-40 per cent of the Schibsted’s trainee programme. In some areas, such as the printing Group’s cash flow per share. In addition, the Group wants to have a operations, traditional graphic production areas and IT, there is a high certain stability in the dividend over time. In years when economic level of male dominance. conditions are weak, the level of dividend will be maintained as far as the Group’s capital structure so permits. Such a dividend level will The percentage of women in the subsidiaries’ managements has lead to Schibsted’s direct yield being competitive both in the Norwe- increased over the past few years. At the year-end, the percentages gian market and compared to European media companies. of women in the managements of the Group’s largest subsidiaries were as follows: The Group’s strategic direction and ownership structure place some restrictions on the capital structure. A stable increase in dividend and Aftenposten 25 per cent the opportunity to repurchase shares are regarded as suitable tools Aftonbladet 42 per cent for adjusting the capital structure. Svenska Dagbladet 48 per cent VG 35 per cent Following the acquisition of Schibsted Classified Media (formerly Trader) in the summer of 2006, several measures have been carried Schibsted’s group management currently consists of six men and one out according to plan to free up capital and improve the Group’s woman. financial flexibility. The Group expects to have strong cash flows in the future. Dividend and capital structure Schibsted is a listed company that aims to provide a competitive rate The Board will propose a dividend of NOK 6.00 per share for the 2007 of return based on healthy finances. The Schibsted Board believes financial year (NOK 5.00) to the Annual General Meeting. it is essential that the company’s shares are perceived to be an interesting investment alternative. It is therefore one of the Schibsted Board’s goals to maximise the shareholders’ return through long-term SCHIBSTED ASA growth in the share price and dividend. The Board will make efforts Schibsted ASA is the parent company of the Group. The company’s to ensure that the price of the company’s shares reflects, in so far as accounts are presented in accordance with the Norwegian Accounting possible, the company’s long-term earnings ability. Act and generally accepted accounting practices in Norway (NGAAP). the board of directors’ report 2007

Schibsted ASA’s operating revenues of NOK 20 million (NOK 4 million) At the year-end, Schibsted ASA had 110 (84) employees, 38 of whom consist mainly of consulting fees for services carried out for subsidiar- were trainees working in the Group companies. The Group Chief ies and fees for subsidiaries’ participation in sales- and management- Executive Officer is Schibsted ASA’s managing director. development programmes. The ordinary operating expenses of NOK 216 million (NOK 180 million) relate to the Group administration The Board of Schibsted ASA proposes allocating the profit for the services. The company made an operating loss of NOK 196 million in year as follows: 2007 (a loss of NOK 176 million), while its financial items came to NOK 861 million (1 837 million), of which the gain on the sale of Asker og Profit for the year NOK 503 million Bærum Budstikke comprised NOK 25.5 million. Schibsted ASA records Proposed allocation: Group contributions received as financial income, and these amounted Transferred to other equity NOK 113 million to NOK 815 million (764 million). Profit before taxes came to NOK 665 Provisions for dividend, NOK 6.00 per share NOK 390 million million (1 661 million). Group contributions to subsidiaries total NOK 558 million. Schibsted ASA had distributable equity of NOK 1 832 million (2 079 million) at 31 December 2007.

Oslo, 27 March 2008 Schibsted ASA’ Board of Directors

Ole Jacob Sunde Karl-Christian Agerup Monica Caneman Chairman of the Board Deputy Chairman of the Board

Alexandra Bech Gjørv Eva Lindqvist Christian Ringnes

Berit Simenstad Audun Solberg Kjell Aamot President and CEO SCHIBSTED ANNUAL REPORT 2007 –– BOARD OF DIRECTORS’ REPORT PAGE 67 declaration regarding the determination of salary and other remuneration to managers of Schibsted ASA

1. The starting point for the company’s management remu- and the Nordic region. The Schibsted Group’s managerial salaries are neration policy to be competitive in relation to such managers’ special needs. The Board of Schibsted ASA views the employees as the Schibsted Group’s most important resource and has a focus on the Group offering However, it is assumed that the increase in the managers’ annual competitive conditions in order to attract and retain skilled employees. salaries will be moderate. From 2006 to 2007, the average increase The managers’ salaries (their total remuneration) should be on a level in the managers’ annual salaries was 6.23 per cent. Managers are with managers’ salaries in companies and operations that we compete not to receive directors’ fees for board appointments they accept as with for skilled employees, both in Norway and abroad. part of their work for the Schibsted Group.

2. Who is covered by the guidelines 5. Guidelines for remuneration in addition to the annual salary The guidelines for determining managers’ remuneration have been 5.1 Benefits in kind decided on by the board of Schibsted ASA and apply to Schibsted Managers will normally be given the benefits in kind that are normal ASA and to all subsidiaries in the Schibsted Group. in comparable positions, ie, telephone expenses, a PC at home, free broadband connection and use, newspapers, a company car and The guidelines apply to remuneration to managers but will also free parking. There are no special limitations on the type of other provide guidance for the remuneration to other Group employees. benefits that can be agreed on. The managers who are directly covered by the guidelines are the CEO and executive vice presidents of Schibsted ASA, the Chief 5.2 Bonuses and incentive schemes Operating Officer of Schibsted International Classified, the CEOs Managers have a bonus programme which is linked to the attain- and editors-in-chief of Aftenposten, VG, Svenska Dagbladet and ment of defined goals. Other Group employees may also participate Aftonbladet, and the CEO of Metronome Film & Television. in bonus schemes. The main elements of the guidelines linked to the Group’s bonus schemes are as follows: With effect from the allotment in 2008, those participating in the option programme will be changed as stated in item 5.3 below. The bonus payment is limited to a maximum of six months’ salary for the CEO and executive vice presidents of Schibsted ASA and 3. The period for which the declaration applies other senior administrative managers as mentioned in item 2. For The declaration applies for the coming financial year, cf section other employees, bonus payments in one year are limited to a 6-16 a) (2) of the Norwegian Public Limited Companies Act. The maximum of four months’ salary. Board will base its work on this declaration following discussions at the Annual General Meeting in the spring of 2008. The bonus is to be two-part, linked to both financial and strategic criteria that form part of an overall assessment. An account of the management remuneration policy complied with in the previous financial year, ie, in 2007, is given in item 5 below. The payment of any bonus is to take place at the same time as the salary payment in the first calendar month after the Annual General 4. The main principles of the company’s management Meeting has adopted the company’s annual report and accounts for remuneration policy the accrual year. A fixed salary (the annual salary) is to be an important part of the manager’s remuneration. The Schibsted Group’s continued growth The bonus payments to managers for the 2007 financial year are and profitability depend on the employees’ efforts to ensure the shown in the overview in note 8 to the accounts. lasting development of the company and improvement in its profitability. To motivate managers to make such efforts, additional ben- Guidelines have been determined governing the use of other incen- efits are to be given linked to factors that the managers themselves tive schemes in the Schibsted Group’s subsidiaries in addition to can influence. The additional benefits are to appear reasonable bonus schemes as described above. The Group’s Board believes compared to the Schibsted Group’s results and the value created there is a need to be able to offer various incentive schemes apart for Schibsted ASA’s shareholders that year. from bonus schemes to managers of important subsidiaries in order to ensure long-term value creation and entrepreneurship and to at- The Schibsted Group will expand internationally in the years to come tract or retain key managers. Such incentive schemes may consist and wants to attract and retain managers that belong outside Norway of long-term bonus schemes or option or share-purchase schemes. declaration regarding the determination of salary and other remuneration to managers of Schibsted ASA

5.3 Share-based remuneration reason for this change was a desire to tie the management employ- Schibsted ASA has an option programme linked to the Schibsted ees to the company/Group for a longer period. share that was introduced in 2000. Accrued options may be exercised during a period of two years from The objective of the option programme is to promote long-term value the date when the options have been accrued. Accrued options that creation by contributing to increased ownership by key managers of are not exercised within the two-year period lapse automatically. the Schibsted Group and to ensure that the management and shareholders have common interests due to their share ownership. The exercise price is to be determined on the basis of the average market price one week before and one week after the publication The option programme covers key Group managers whose functions of the company’s first quarter figures for the allotment year. The apply to the entire Group or who have important operational posi- exercise price remains unchanged during the accrual period and tions within the Group. exercise period. The Board of Schibsted ASA have decided that an exercise price that is not adjusted provides the best basis for the At the end of 2007, the option programme covered the CEO and management’s efforts to ensure long-term value creation for the executive vice presidents of Schibsted ASA, the Chief Operating Of- Group. In this, the Board has placed emphasis on such things as the ficer of Schibsted International Classified, the CEOs and editors-in- stock market’s volatility and the challenges linked to determining an chief of Aftenposten, VG, Aftonbladet and Svenska Dagbladet, and annual “foreseeable” value-creation amount. the CEO of Metronome Film & Television. As from the allotments in 2008, unaccrued options will lapse when Options are allotted on three levels, with 30 000 options allotted to the employment relationship is terminated by the option-holder or the CEO, 15 000 to the executive vice presidents and 7 500 to the the company/Group. Accrued options must be exercised within other managers encompassed by the programme. A total of 180 short deadlines. If the option-holder’s employment relationship with 000 options were allotted under the option programme in 2007. the company or Group is terminated as a result of early retirement or retirement due to disability or age, one third of the options are Certain changes will be made to the circle of people covered by to be regarded as having been accrued at the end of each year the programme when options are allotted in 2008. The CEO of counted from the allotment date during the accrual period. The Metronome Film & Television withdrew from the programme as at same applies in the case of the option-holder’s death or termination 31 December 2007 in order to be covered by a separate incentive of employment due to serious illness during the accrual period. programme in Metronome Film & Television. At the same time, a new fourth level for option allotments is being introduced and When options are exercised, the company can choose between will grant entitlement to 3 750 options. The increase in the circle issuing the shares in whole or in part in accordance with a Board au- of managers is made in accordance with central key functions in thorisation or General Meeting resolution or acquiring shares from the Group’s further growth and internationalisation strategy. The other shareholders or the company and transferring these to the framework for the allotment of options in 2008 has therefore been option-holder. The company has usually either bought shares in the increased by around 10 per cent to 198 750 options. market or used its shareholding of its own shares.

The Board decides on the allotment to the CEO. The other allot- In the Board’s opinion, the option programme should be further ments are determined by the CEO within the option programme’s changed so that it provides predictable results. Predictability reduc- frameworks and such that the CEO reports these allotments to the es the risk of effects which have a negative inﬂuence on Schibsted’s Board’s Compensation Committee. reputation or value creation. Predictability considerations indicate that, as one of the company’s risk management tools, a limit is to The allotment of options under the option programme normally be set for the maximum gain per option share that can be achieved takes place by the end of the ﬁrst half-year. Options allotted in 2007 when the options are exercised. and previous years are basically accrued in equal parts (1/3) over a three-year period counted from the allotment year. When considering what this limit should be, the Board has consid- As from the allotments in 2008, the options cannot be exercised ered on the one hand the main purpose of the option programme until at least after a period of three years counted from the allot- – to promote long-term value-creation – and on the other the fact ment date. There is no accrual during the three-year period. The that there should be a maximum limit for the annual remuneration SCHIBSTED ANNUAL REPORT 2007 –– BOARD OF DIRECTORS’ REPORT PAGE 69

to managers which is not perceived to be unreasonable compared The option value of the allotment framework in 2008 is to be calcu- to the results achieved. lated by using the Black-Scholes option-pricing model. The option values and accounting consequences of allotments in previous In the Board’s view, the Schibsted Group is - in relation to market, years are stated in note 8 to Schibsted’s consolidated accounts. business-condition, sector and structural factors – in a situation that is interesting but demanding. Those participating in the option 5.4 Pension schemes programme are of great importance to the Group’s value creation. The Group’s CEO is entitled and, if Schibsted so requires, obliged to The Board also places emphasis on the fact that the number of retire at the age of 62 years. His full annual early retirement pension shares in the option programme is modest compared to the total is 66 per cent of his annual salary. The retirement pension solution number of shares in Schibsted ASA and that the accrual period as means that, when he reaches 67 years of age, the Group CEO will from the allotments in 2008 will be three years, with no accrual dur- receive a retirement pension for life which, with full accrual (30 ing the period. years), equals 66 per cent of his annual salary as Group CEO. He is entitled to a disability pension of 66 per cent of his salary. The On this background, the Board has decided that, as from the option spouse/cohabitant pension is 60 per cent of his retirement pension allotments in 2008, a maximum gain per share that managers can and the child pension is 15 per cent of his retirement pension. The achieve when exercising the options - equal to 1.460375 x the right to an early retirement pension lapses if the CEO resigns from exercise price per share - is to be stipulated. This is equivalent to his position or is dismissed by the company due to a fundamental an annual increase in value of 35 per cent during the three-year breach/summary dismissal. accrual period. The option-holder’s total gain cannot exceed the maximum gain per share x the number of shares allotted. A limit on New early retirement agreements were negotiated for the Norwe- the total gain for each allotment has thus been established. gian executive vice presidents and the then CEOs and editors- in-chief of Aftenposten and VG in 2006. According to previous There is an obligation to reinvest when options are exercised and/ contracts, these were entitled to retire at the age of 65 years on or a prohibition against the sale of shares until a certain minimum a pension of 90 per cent of their annual salary until the age of 67 shareholding of the Schibsted share is achieved. When options were years. These are now entitled and, if Schibsted so demands, obliged allotted in 2007 and previous years, the reinvestment obligation for to retire at the age of 62 years. Should the parties agree, they can the CEO was an ownership requirement equal to two annual salaries, retire at the age of 60 years. During the period leading up to the while it equalled one annual salary for the executive vice presidents ordinary retirement age (67 years), they will receive a pension that and half an annual salary for the other managers. Until the minimum is 66 per cent of their annual salary. The pension will be reduced if requirement has been achieved, up to 50 per cent of the profits after they have been with the Group for less than 10 years. The right to tax on exercised options must be reinvested in Schibsted shares. an early retirement pension lapses if the manager resigns from his/ her position or is dismissed by the company due to a fundamental The reinvestment obligation is tightened up as from the option breach/summary dismissal. The current managers are also ensured allotments in 2008. When option-holders sell shares acquired by a disability pension equal to their retirement pensions and a per- exercising options, they must use at least 50 per cent of the net centage pension for their dependants calculated on their retirement gain after tax to acquire further shares in Schibsted. Shares that are pension in the same way as for the CEO. acquired due to compliance with the reinvestment obligation cannot be sold until at least three years after they were bought. The same level of benefits (66 per cent of the annual salary) applies to future managers at corresponding management levels, but the The framework for the allotment in 2008 and other wording of the pension rights will be accrued in a straight line during the period of option programme reflect on the one hand a desire to promote the employment and entail a right and a duty to retire at the age of 62 long-term views and continuity which form a basis for the efficient years. The Group’s early retirement pension is payable through the management of the operations – managers and shareholders have management accounts. Future managers are ensured a disability common interests due to their share ownership – and on the other pension equal to their retirement pension and percentage pensions hand shareholder considerations, such as the power balance, to their dependants calculated on their retirement pension in the dilution, the sharing of value creation and the share’s liquidity. In same way as for current managers. Competition restrictions apply the Board’s opinion, the framework and wording of this programme as long as managers receive an early retirement pension from represent a reasonable balance between these two considerations. Schibsted. declaration regarding the determination of salary and other remuneration to managers of Schibsted ASA

The CEO and other managers based in Norway are covered by the The Chairman of the Board has no special remuneration scheme Schibsted Group’s company pension schemes, refer to note 8 to that applies if he resigns. Schibsted’s consolidated financial statements. Until the year-end 2006, managers were members of a group life annuity (a so-called 5.6 Other variable payments and/or special benefits top-hat scheme) which ensured them a retirement pension equal The Group has a loan scheme for managers which entitles them to to 66 per cent of their salaries even if these were more than 12G a loan of NOK 400 000-800 000, depending on their position. A (G = the Norwegian National Insurance Scheme’s basic amount) mortgage on the borrower’s home of up to 100 per cent of the ap- and a disability pension and dependants’ pensions. Managers have proved market value is established. In addition, Schibsted ASA has been issued paid-up policies to cover their accrued rights under the established a guarantee for the total loan portfolio. The loans are top-hat scheme and, as from 2007, they are assured correspond- interest-only, with interest and charges falling due quarterly. ing benefit levels payable through the management accounts of their respective companies, guaranteed by Schibsted ASA, so that The interest on the loans is determined by Schibsted ASA and was the paid-up policies together with the pension payable through the 4 per cent at the end of 2007 (equal to 1 per cent below the prevail- management accounts will provide the agreed benefits. ing standardised interest rate for fringe benefit taxation determined in the National Budget, which was 5 per cent as at 31 December 2007). The Schibsted Group’s managers who are based in Sweden mainly have defined contribution pension insurances, which ensure Should the borrower terminate his/her employment or retire, the benefits on a level with those of the Norwegian managers as from loans automatically fall due for repayment one month after the the age of 62 years. The executive vice president in Sweden has a termination of employment date. The loan scheme will be wound defined benefit pension insurance on a level with the Norwegian up over time. executive vice presidents. 6. Guidelines for the management remuneration policy in 2007 The Board considers the present schemes for managers based in The guidelines for the management remuneration policy in 2007 Sweden to be adapted to suit the market. Today’s practice will be were more or less the same as the guidelines stated above. During continued, with certain guidelines for determining defined contribu- the first quarter of 2008, the company has completed a review of tion rates based on age and salary. the option programme and decided to make some changes with effect from the option allotments in 2008. The pension level and solution for managers outside Norway and Sweden must be viewed in connection with the individual manager’s A fourth level has been added to the option programme, involving overall salary and employment conditions, and is intended to be the allotment of 3 750 shares to those taking part at this level. comparable to the overall solution for managers in Norway and Sweden. Local rules linked to pension legislation, social security A maximum gain per share has been stipulated, providing a limit on rights, tax, etc, are to be taken into account when shaping the the total gain that an option allotment can lead to. individual pension agreements. The scheme of annual accrual during a three-year accrual period 5.5 Termination payment schemes has been replaced by a requirement of a three-year accrual and, The Group CEO’s termination payment equals 24 months’ salary in usually, no accrual during the period. addition to the six-month period of notice. If other pay or remuneration for work is received during the last 12 months of the termination-pay When options were allotted in 2007 and previous years, the CEO’s period, the termination pay will be reduced correspondingly. The other reinvestment obligation entailed an ownership requirement of managers based in Norway have termination-pay schemes which two annual salaries, while for the executive vice presidents and provide 18 months’ salary in addition to the six-month period of notice. other managers this requirement was one annual salary and half an annual salary respectively. Until the minimum requirement has To the extent that termination-pay schemes are agreed on for other been reached, up to 50 per cent of the profit after tax on exercised managers in the Group, these will not normally exceed 12 months’ options must be reinvested in Schibsted shares. As from the option salary and competition restrictions will apply during the termination- allotments in 2008, option-holders must, if they sell shares acquired pay period. by exercising options, spend at least 50 per cent of the net gain af- SCHIBSTED ANNUAL REPORT 2007 –– BOARD OF DIRECTORS’ REPORT PAGE 71

ter tax on buying additional Schibsted shares. These shares cannot which, in the case of full accrual, ensured these 66 per cent of their be sold until at least three years after they were acquired. salaries, including salaries above 12 G. Due to new tax rules, these schemes were terminated at the year-end 2006. In 2007, schemes Procedural rules have been established to safeguard considerations were established according to which a corresponding level of ben- of impartiality and independence when implementing, amending or eﬁts is payable through the management accounts of the respective winding up the option programme. companies and is guaranteed by Schibsted ASA.

7. The effects on the company and shareholders of In real terms, the costs for the company/Group are more or less agreements entered into or amended in 2007 the same, but the effects on liquidity are postponed until the pay- As mentioned above, the option programme will include 198 750 ment dates. options in 2008, compared to 180 000 options in 2007. 8. Procedural rules The increase in the number of shares in the 2008 option program The Board of Schibsted ASA has since 2004 had a Compensation can mainly be explained by the introduction of a fourth level with Committee that prepares issues for the Board relating to salaries the allotment of 3 750 shares to the managers taking part on this and other remuneration to the Group’s senior managers. The Com- level. Following this expansion, the option programme will continue mittee’s mandate is published on the company’s website. In the ﬁrst to be limited in scope compared to the total number of shares in quarter of 2008, the Compensation Committee has discussed the Schibsted ASA. guidelines for the management remuneration policy. The Board of Schibsted has on this basis adopted guidelines for the remuneration In addition, a limit has been introduced on the gain per share of managers in Schibsted. that managers can achieved when they exercise options, equal to 1.460375 x the exercise price per share. This is equivalent to a The Compensation Committee prepares for a Board resolution all im- 35 per cent increase in value during each year of the three-year portant issues relating to the implementation of, changes to or winding accrual period. up of share-based remuneration schemes for the Group’s management. The Committee’s chairman is in charge of the preparatory work. The reinvestment obligation is tightened up as from the option allotments in 2008 in that 50 per cent of the net gain after tax on Appointing the CEO of Schibsted ASA is among the duties of the the sale of shares that stem from the exercise of options must be Board. At its meetings the Board determines the salary and other reinvested. The shares may not be sold until they have been owned remuneration of the CEO, cf. Section 6-19 (1) of the Public Limited for three years. Companies Act. The CEO (Group President) determines the salaries and other remuneration of other senior executives within the guide- The Board believes that the amendments to the guidelines for share- lines for compensation for senior executives at Schibsted ASA. based remunerations described above will promote value creation in the company/Group and that the effects on the company and The Board of Schibsted ASA has had an Audit Committee since shareholders must, on this background, be regarded as positive. 2007. The Audit Committee’s mandate is published on the com- As stated in item 5.4 above, changes were made in 2007 to the pany’s website. company’s so-called top-hat scheme for the company’s managers

Oslo, 27 March 2008 Board of Directors Schibsted ASA articles of association of Schibsted ASA

Last changed at the Annual General Meeting Companies Act and loss account and balance sheet), on 10 May 2007. c) companies within the same group of resolution as to the application of the companies as the shareholder, and years’ profit or coverage of deficit pursuant § 1 NAME d) anyone with whom the shareholder has a the balance sheet adopted. The company is a public limited company with binding collaboration with regard to the 2. Adoption of the consolidated accounts the name Schibsted ASA. exercise of their rights as shareholders. (profit and loss account and balance sheet). § 2 REGISTERED OFFICE § 7 CHANGES IN THE ARTICLES 3. Election of an Election Committee at the The company’s registered office of business is OF ASSOCIATION end of the service period. The Election in Oslo, Norway. Any resolution to amend the Articles of As- Committee shall consist of 3 members and sociation, to sell shares of subsidiaries, or one deputy. The chairman of the Election § 3 OBJECTIVES relating to the casting of votes respecting Committee is elected by the General Meet- The purpose of the Company is to engage in an amendment to the Articles of Associa- ing. The Election Committee is elected the information business, as well as related tion of subsidiaries, shall be passed by the for 2 years. The Election Committee business activities. Shareholders’ Meeting and shall require the shall among others nominate sharehold- endorsement of more than of the share ers’ board members and their deputies The shareholders shall enable the Company capital represented in the relevant Sharehold- whenever their respective service period to operate its information business in such a ers’ Meeting. This same shall apply to any expires or a by-election is needed. As far way that editorial freedom and integrity are assignment of the publication rights pertaining as possible, the Election Committee shall fully ensured. The requirement for edito- to Aftenposten or Verdens Gang. announce its nominations in the sharehold- rial freedom and integrity shall apply to all ers’ notice of the Annual General Meeting. media and publications encompassed by the § 8 BOARD OF DIRECTORS Norwegian and international activities of the The Company’s Board of Directors shall com- The Election Committee proposes Schibsted Group. prise from 6 to 11 members, as well as deputy remunerations to the members of the members, as decided by the Annual General Board of Directors. The proposal shall be § 4 SHARE CAPITAL Meeting. The employees in the Group shall made in advance for a period of one year The Company’s nominal share capital is NOK be represented on the Board by the number counting from the Annual General Meeting. 69.250.000 pro rated on 69.250.000 shares of representatives in accordance with current each of NOK 1.00. All shares are fully paid agreements with the Company. This means The Election Committee may pass opinions up and registered by name. The Company’s that the employees in the Group shall have on, and may put forward proposals to the shares shall be registered in the Norwegian two Board members when the Board com- General Meeting, in matters regarding the Registry of Securities. prises six, seven or eight members, and that Board of Directors’ size, composition and the employees in the Group shall have three working conditions, as well as matters § 5 TRANSFERABILITY Board members when the Board comprises regarding the Company’s auditor, including The Company´s shares are freely transferable nine, ten or eleven members. proposals regarding the election of the subject to the restrictions set out in Company’s auditor and the auditor’s § 6 below. Shareholders owning 25 per cent or more of remuneration. the Company’s share capital shall have the § 6 RESTRICTIONS ON OWNERSHIP right to appoint one of the Board members 4. Election of shareholders’ Board members AND VOTING RIGHTS elected by the shareholders. Board members and deputies whenever their respective No shareholder may own or vote at the shall be elected for 1 year. service period expires. general meeting in respect of more than 5. In the notice of the Annual General 30 per cent of the shares. In addition to a § 9 EXECUTION OF DOCUMENTS Meeting, the company may stipulate a shareholder’s own shares, shareholdings The Chairman of the Board and one of the registration deadline which may not be which are owned or acquired by the following other members of the Board of Directors may less than five days before the Annual are included: jointly sign for the Company. The Board may General Meeting. grant power of procuration. 6. Other matters which by law or the a) the shareholder’s spouse, minor children or Company’s Articles of Association falls persons with whom the shareholder has a § 10 ANNUAL GENERAL MEETING within the scope of the Annual General common household In the ordinary Annual General Meeting, the Meeting. b) companies where the shareholder has following matters shall be acted upon: an influence as specified in § 1-2 of the Norwegian Public Limited Liability 1. Adoption of the financial statements (profit annualbrands report

–– Income statement – Group page 74 –– Balance sheet – Group page 75 –– Cash ﬂow statementconnected – Group page 76 –– Statement of changes in equity – Group page 77 –– Notes to the consolidated ﬁnancial statement – Group page 78 Subsidiaries pageannual 108 INCOME STATEMENT - SCHIBSTED GROUP

(NOK million) Note 2007 2006 2005

Operating revenues 6 13 610 11 648 9 832

Raw materials, work in progress and ﬁnished goods 7 (2 209) (2 126) (1 908) Personnel expenses 8 (4 438) (3 659) (2 961) Depreciation and amortisation 12 (586) (439) (344) Other operating expenses 9 (5 349) (4 590) (3 840) Income from associated companies 13 149 179 198

Operating proﬁt before impairment of goodwill and other revenues and expenses 1 177 1 013 977

Impairment loss goodwill 12 (8) (10) - Other revenues and expenses 5 77 1 492 184

Operating proﬁt 6 1 246 2 495 1 161

Financial income 10 93 124 94 Financial expenses 10 (311) (206) (78)

Proﬁt before taxes 1 028 2 413 1 177

Taxes 11 (291) (188) (230)

Net income 737 2 225 947

Net income attributable to minority interests 102 82 73 Net income attributable to majority interests 635 2 143 874

Earnings per share (NOK) 20 9.52 32.52 12.91 Diluted earnings per share (NOK) 20 9.49 32.45 12.89 Earnings per share - adjusted (NOK) 20 8.31 9.87 9.76 Diluted earnings per share - adjusted (NOK) 20 8.28 9.85 9.74 SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 75

BALANCE SHEET AT 31 DECEMBER - SCHIBSTED GROUP

(NOK million) Note 2007 2006 2005

ASSETS Deferred tax assets 11 194 289 311 Intangible assets 12 8 093 8 049 1 406 Investment property 12 - 139 198 Property, plant and equipment 12 1 720 2 070 1 931 Investments in associated companies 13 2 001 1 164 1 584 Long-term ﬁnancial instrument 15 155 81 137 Other non-current assets 19 82 96 100 Non-current assets 1212 245 11 888 5 667

Inventories 18 123 125 94 Trade and other receivables 17 2 466 2 218 1 442 Short-term ﬁnancial instruments 15 3 78 56 Cash and bank deposits 16 842 2 240 676 Current assets 3 434 4 661 2 268

Non-current assets held for sale 12 312 - -

Total assets 15 991 16 549 7 935

EQUITY AND LIABILITIES Share capital 69 69 69 Treasury shares (3) (2) (2) Other paid-in capital 190 178 89 Other equity 4 514 4 630 2 778 Majority interest in equity 4 770 4 875 2 934 Minority interests 193 294 287 Equity 4 963 5 169 3 221

Deferred tax liabilities 11 508 627 116 Pension liabilities 23 744 729 756 Interest-bearing loans and borrowings 14 757 740 1 078 Other non-current liabilities 24 1 557 956 - Non-current liabilities 3 566 3 052 1 950

Interest-bearing loans and borrowings 14 4 206 5 270 493 Income tax payable 11 193 165 176 Other current liabilities 22 3 063 2 893 2 095 Current liabilities 7 462 8 328 2 764

Total equity and liabilities 15 991 16 549 7 935

Oslo, 27 March 2008 Schibsted ASA’s Board of Directors

Ole Jacob Sunde Karl-Christian Agerup Monica Caneman Chairman of the Board Deputy Chairman of the Board

Alexandra Bech Gjørv Eva Lindqvist Christian Ringnes

Berit Simenstad Audun Solberg Kjell Aamot President and CEO CASH FLOW STATEMENT – SCHIBSTED GROUP

(NOK million) Note 2007 2006 2005

CASH FLOW FROM OPERATING ACTIVITIES Profit before taxes 1 028 2 413 1 177 Income from associated companies 13 (149) (179) (194) Dividends received from associated companies 13 70 132 157 Taxes paid (203) (254) (232) Sales losses / (gains) non-current assets (311) (1 731) (371) Depreciation, amortisation and impairment losses intangible assets and property, plant and equipment 12 619 449 352 Impairment losses financial instruments and current assets - 7 1 Change in working capital 91 (16) 94 Net cash flow from operating activities 28 1 145 821 984

CASH FLOW FROM INVESTING ACTIVITIES Purchase of intangible assets and property, plant and equipment 12 (619) (498) (363) Acquisition of subsidiaries and joint ventures, net of cash acquired 28 (323) (4 727) (442) Sale of intangible assets and property, plant and equipment 352 172 58 Sale of subsidiaries and joint ventures, net of cash sold 28 353 53 654 Investments in / sale of other shares (768) 2 149 (99) Other investments / sales 68 (22) 2 Net cash ﬂow from investing activities (937) (2 873) (190)

Net cash ﬂow before ﬁnancing 208 (2 052) 794

CASH FLOW FROM FINANCING ACTIVITIES New interest-bearing loans and borrowings 1 560 4 773 104 Repayment of interest-bearing loans and borrowings (2 501) (537) (373) Minority’s contribution and withdrawal of capital (79) (57) (27) Purchase / sale of treasury shares (252) (285) (134) Dividends paid 21 (334) (278) (220) Net cash ﬂow from ﬁnancing activities 28 (1 606) 3 616 (650)

Net cash ﬂow for the year (1 398) 1 564 144

Cash and cash equivalents at 1 January 2 240 676 532

Cash and cash equivalents at 31 December 16 842 2 240 676 SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 77

STATEMENT OF CHANGES IN EQUITY - SCIBSTED GROUP

FOREIGN NET SHARE OTHER CURRENCY UNREALISED SHARE- TREASURY PREMIUM PAID-IN RETAINED TRANSL. GAINS MINORITY (NOK mill.) CAPITAL SHARES RESERVE EQUITY EARNINGS RESERVE RESERVE INTERESTS TOTAL As at 31 December 2004 69 (1) 76 7 2 191 (51) - 140 2 431 Implementation of IAS 32/39 - - - - (5) - 63 - 58 Net income 2005 - - - - 874 - - 73 947 Share-based payment (Note 8) - - - 3 - - - - 3 Dividends (Note 21) - - - - (220) - - - (220) Dividends to minority interests ------(27) (27) Change in treasury shares (Note 20) - (1) - 3 (136) - - - (134) Change in fair value of investments available for sale ------(12) - (12) Additions, disposals and change in ownership of subsidiaries and associated companies - - - - 104 - - 111 215 Translation differences - - - - - (77) - (10) (87) Effect of hedging of net investment in foreign operations - - - - - 47 - - 47

As at 31 December 2005 69 (2) 76 13 2 808 (81) 51 287 3 221 Net income 2006 - - - - 2 143 - - 82 2 225 Share-based payment (Note 8) - - - 4 - - - - 4 Dividends (Note 21) - - - - (278) - - - (278) Dividends to minority interests ------(59) (59) Change in treasury shares (Note 20) - - - 85 (102) - - - (17) Change in fair value of investments available for sale ------(20) - (20) Additions, disposals and change in ownership of subsidiaries and associated companies - - - - (21) - - (24) (45) Translation differences - - - - - 260 - 8 268 Effect of hedging of net investment in foreign operations - - - - - (130) - - (130)

As at 31 December 2006 69 (2) 76 102 4 550 49 31 294 5 169 Net income 2007 - - - - 635 - - 102 737 Share-based payment (Note 8) - - - 8 - - - - 8 Dividends (Note 21) - - - - (334) - - - (334) Dividends to minority interests ------(88) (88) Change in treasury shares (Note 20) - (1) - 4 (255) - - - (252) Change in fair value of investments available for sale ------29 - 29 Additions, disposals and change in ownership of subsidiaries and associated companies - - - - (31) - - (100) (131) Translation differences - - - - - (284) - (15) (299) Effect of hedging of net investment in foreign operations - - - - - 124 - - 124

As at 31 December 2007 69 (3) 76 114 4 565 (111) 60 193 4 963 NOTES TO THE GROUP ACCOUNTS

All amounts are in NOK million unless otherwise stated.

NOTE 1 COMPANY INFORMATION

Schibsted ASA is domiciled in Norway. The company’s head office is located at Apotekergt. 10, Oslo. The company’s postal address is P.O. Box 490 Sentrum, 0105 Oslo. The company is a public limited company that is listed on the Oslo Stock Exchange under ticker SCH.

Schibsted is one of Scandinavia’s leading media groups. The major business are in Norway, Sweden, Baltics, Spain and France but the Group also has operations in Denmark, Finland, Austria, Italy, Switzerland, Russia, Slovenia, Singapore, Malaysia and Latin America. Schibsted currently has a presence in newspaper, TV, film, online, mobile-phone, book and magazine media.

The financial statements were approved by the Board of Directors on 27 March 2008 and will be proposed to the General Meeting 8 May 2008.

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), issued by International Accounting Standards Board (IASB), EU-approved and in accordance with the Norwegian Accounting Act § 3-9. The consolidated financial statements have been prepared based on a historical cost basis, with the exception of financial instruments which are measured at fair value.

The Group’s income statement is divided by reference to the nature of income and expenses.

The preparation of annual financial statements in accordance with IFRS requires management to use estimates and assumptions that affect the reported amounts. Furthermore, management is required to make evaluations relating to the application of the Group’s accounting policies. Areas that are strongly affected by estimates and evaluations that are complex or material to the consolidated accounts are described in note 4.

CONSOLIDATION PRINCIPLES The consolidated financial statements comprise Schibsted ASA and companies controlled by Schibsted ASA, directly or indirectly, 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.

Subsidiaries are consolidated in the consolidated financial statements from the date control is obtained 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 on separate lines in the income statement and balance sheet. Business combinations are accounted for by applying the purchase method, under which the cost of acquisition is allocated to identifiable assets and liabilities measured at estimated fair value at the date of exchange. Any excess cost of acquisition not allocated to identifiable assets and liabilities is recognised as goodwill. In translating the financial statements of foreign subsidiaries from the respective func- tional currencies to Norwegian kroner, assets and liabilities are translated using the closing rate at the date of the balance sheet, while income and expenses are translated using average exchange rates. Translation differences are recognised in equity until disposal of the investment.

For business combinations achieved in stages, assets and liabilities are recognised at their fair value at the acquisition date. On subsequent acquisitions of minority interests, assets and liabilities are not restated, except for goodwill which is recognised with the amount arising on each transaction.

Joint ventures are defined as companies in which Schibsted participates, directly or through subsidiaries, and where the participants through agreements have joint control over the operation’s activities. Joint ventures are accounted for using proportionate consolidation whereby Schibsted’s share of revenue, expenses, assets and liabilities are recorded line by line in the consolidated financial statements.

Associated companies are defined as companies in which Schibsted ASA, directly or through subsidiaries, does not have a controlling interest but exercises significant management influence and has a significant ownership share, normally 20-50%, but also when ownership share exceeds 50% but limitations in voting right restricts control. Associated companies are accounted for applying the equity method of accounting under which Schibsted recognises its share of the company’s net income and gains or losses on sale in a separate line item in the income statement within operating profit. In the balance sheet, the investment is carried at cost adjusted for the share of net income and dividends received.

ACCRUAL, CLASSIFICATION AND VALUATION PRINCIPLES Revenue recognition Advertising revenues for printed media are recognised when the ads are placed, at full price less discounts and credits for errors. Subscription revenues for printed media are invoiced in advance and recognised in income upon delivery over the agreement period. Other sales, including casual sales are recognised in income based on copies delivered less returns. SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 79

Income from Internet activities, including advertising revenues and subscription based revenues, are recognised to income over the agreement period.

Barter agreements are recognised in income at fair value at the time of the transaction. Fair value is measured based on the value of the service delivered or received, depending on which service can be most reliably measured.

Revenues related to TV and film productions performed over more than one accounting period are recognised using the percentage-of-completion method of accounting. Under this method, revenues and profits are recognised as work under the contract progresses.

Government grants are recognised as income on a systematic basis over the periods necessary to match them with the related costs.

Classification Assets and liabilities related to the normal operating cycle are classified as current assets and liabilities. Assets and liabilities not related to the normal operating cycle are classified as current if they are of a short-term nature, normally due within one year. Shares and other investments held for trading or expected to be sold within the next 12 months are classified as current assets. Other assets and liabilities are classified as non-current assets or liabilities, respectively.

Financial instruments The group classifies its financial instruments in one of the following categories:

–– Financial assets or financial liabilities at fair value through profit or loss. A financial asset or liability is classified in this category if it is acquired primarily with a view of selling in the near term or it is designated by management in this category. Financial derivatives are included in this category unless acquired for hedging purposes. Changes in fair value are recognised in profit or loss.

–– Loans and receivables. The category includes non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. The assets are measured at amortised cost using the effective interest method.

–– Held-to-maturity investments. The category includes non-derivative financial assets with fixed or determinable payments that the group has the intention and ability to hold to maturity. The Group had no such investments in the financial year.

–– Avaliable-for-sale financial assets. The category includes financial assets that are designated as available for sale or which are not classified in any other category. Assets in this category are measured at fair value, and gains and losses arising from changes in fair value, except for impairment losses, are recognised in equity until the asset is derecognised.

Financial liabilities not included in any of the above categories, including interest-bearing debt are measured at amortised cost.

The purchase and sale of financial instruments is recognized initially on the transaction day. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire and the Group has transferred substantially all the risks and rewards of the asset. Financial liabilities are derecognised when the obligation is discharged, cancelled or expires.

Foreign currency and hedging Financial instruments (monetary items and derivatives) in foreign currencies are translated at the closing rate at the date of the balance sheet. Normally, changes in fair value are recognised in profit or loss. In the case of hedge accounting, provided that the requirements related to documen- tation and assessment of hedge effectiveness are met, the change in fair value of both the hedging instrument and the hedged object will be recognised in the same period. In the case of cash flow hedges and hedges of net investments in foreign operations, the change in fair value of the hedging instrument is recognised in equity until disposal of the investment, and then recognised in profit or loss corresponding to the underlying transaction.

Intangible assets, investment property and property, plant and equipment Property, plant and equipment and intangible assets are measured at cost less accumulated depreciation and impairment losses. Costs of developing software and other intangible assets are charged to expense until all requirements, including the requirement to demonstrate probable future economic benefits and that the cost of the asset can be measured reliably, are recognised as an asset. Costs incurred after the requirements for recognition are met, including the requirement to demonstrate probable future economic benefits, are recognised as an asset. Cost includes direct and indirect costs attributable to the development of the asset. Borrowing costs are not capitalised as part of cost of assets. Property, plant and equipment and intangible assets with limited useful lives are depreciated systematically over the expected useful life. Depreciation schedules take account of residual values and where significant cost components with different useful lives can be identified, the asset is depreciated over the individual component’s expected period of use.

Repairs and maintenance are expensed as incurred. Costs related to upgrading are recognised as cost of the asset and depreciated over remaining useful life. Environmental expenditures are expensed as incurred unless the measures increase capacity, productivity or the remaining useful life of the related facility. Investment property is reported on a separate line in the balance sheet, and is measured at cost less accumulated depreciation and impairment losses. Investment property is property that is not owner-occupied but is held to earn rentals or for capital appreciation.

An impairment loss related to property, plant and equipment and intangible assets is recognised if the carrying amount exceeds the recoverable amount. The recoverable amount is the higher of fair value less selling expenses and the present value of future cash flows the asset is expected to generate. Impairment losses are reversed if the loss no longer exists for all property, plant and equipment and intangible assets with the exception of goodwill where impairment losses are not reversed.

Leasing Leasing agreements are classified as financial or operational based on the extent to which risks and rewards incidental to ownership of a leased asset lie with the lessor or the lessee. Agreements transferring substantially all the financial rights and obligations related to the leased object to Schibsted are classified as financial. Property, plant and equipment held under financial lease agreements is recognised in the balance sheet and depreciated over the estimated useful life of the asset. The present value of lease payments is included in interest-bearing debt. The debt is reduced by the amount of lease payments less the effective interest rate. Other lease agreements are classified as operational and the leasing fee is charged to the income statement as a leasing expense.

Inventories “Inventories are measured at the lower of acquisition cost and net realisable value. The cost of inventories are assigned by using the first-in, first-out (FIFO) cost formula and comprises all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. Net realisable value is the net amount expected to be realised from sale in the ordinary course of business.

Trade receivables Trade receivables are measured at amortised cost less expected losses.

Treasury shares Cost of acquisition and proceeds from sale of treasury shares are offset against equity.

Pension cost Pension obligations related to defined benefit plans are measured at the net present value of future pension benefits earned at the balance sheet date and calculated on the basis of assumptions for, among others, the discount rate, expected future wage growth and pension adjustments. Plan assets are measured at fair value. Net pension liabilities related to under-funded plans are reported as non-current liabilities, while the net assets of over-funded plans are reported as non-current assets. Net pension expense, which is gross pension expense less the expected return on plan assets adjusted for past service cost and effects of changes in estimates, are included in personnel expenses. Changes in pension obligations due to amendments in pension plans are included in net pension expenses over the vesting period or immediately if the benefits are immediately vested. Changes in pension obligations and plan assets, due to changes in and deviations from the calculation assumptions, are included in net pension expenses over the average remaining working lives of participants for that part of the accumulated effect that exceeds 10% of the greater of plan assets or pension liabilities. In the case of pension plans that are defined as contribution plans for accounting purposes, including multi-employer plans for which the participants’ share of liabilities and plan assets cannot be reliably measured, the premiums are charged to pension expense for the period.

Share-based payment The fair value of options granted to employees, measured at grant date, is charged to expense as personnel expenses over the vesting period. Related social security costs, calculated on the difference between the exercise price and share price at the balance sheet date, are charged over the vesting period, and charge to expense as personnel expenses.

Income taxes Income tax expense is calculated from the profit (loss) before taxes and comprises current taxes and the change in deferred taxes. Deferred tax assets and liabilities are calculated without discounting for all 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 profits from expected future earnings.

Restructuring costs Expenses related to the restructuring of operations are recognised when the liability is incurred. Such expenses are considered to be incurred when the implementation plan is adopted and announced.

Other revenues and expenses Revenues and expenses included in operating profit, but being of a non-recurring nature and material in relation to business segments, are reported on a separate line item in the income statement. SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 81

Provisions, contingent assets and liabilities Provisions 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 current or non-current liabilities. Contingent liabilities are not recognised, but disclosed in the notes to the financial statements. Contingent assets are not recognised, but are disclosed in notes to the financial statements where an inflow of economic benefits is probable.

Cash flow statement The cash flow 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.

IFRSs and IFRIC Interpretations not yet effective Below is a table showing new standards and interpretations issued but not yet effective at 31.12.2007. They will or may have effect on consolidated financial statements in later periods:

New standards Effective for periods commencing IFRS 8 Operating Segments 1.1.2009 Amendments to standards IAS 1 IAS 1 Revised Presentation of Financial Statements 1.1.2009 IFRS 2 Amendments to IFRS 2 Share-based Payments - Vesting Conditions and Cancellations 1.1.2009 IAS 32 and IAS 1 Amendments to IAS 32 and IAS 1 Puttable Financial Instruments 1.1.2009 IAS 23 Revised IAS 23 Borrowing costs 1.1.2009 IAS 27 Revised IAS 27R Consolidated and Separate Financial Statements 1.1.2010 IFRS 3 Revised IFRS 3R Business Combinations 1.1.2010 New Interpretations IFRIC 11 Group and Treasury Share Transactions 1.1.2008 IFRIC 12 Service Consession Arrangements 1.1.2008 IFRIC 13 Customer Loyalty Programmes 1.1.2008 IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction 1.1.2008

Schibsted has not carried out a full analysis of consequences of the new standards and interpretations, but preliminary analyses indicate that they will not have any material effect on existing financial statements.

The new standards will affect the disclosure requirements relating to segment reporting as from 2009 at the latest. NOTE 3 SIGNIFICANT TRANSACTIONS AND EVENTS AFTER THE BALANCE SHEET DATE

Purchase and sale of businesses in 2007 In 2007 Schibsted has invested NOK 1,160 million in shares. Investments in subsidiaries are accounted for in accordance with the purchase method and have given rise to excess values, mainly goodwill and intangible assets.

Through its subsidiary Metronome Film & Television AB, Schibsted acquired on 15 May 2007 100 % of the shares in Stockholm-Köpenhamn Produktion AB for NOK 52 million. Excess values resulting from the acquisition are allocated to goodwill (NOK 38 million) and intangible assets (NOK 13 million). In addition to the purchase price, an additional amount might be paid in 2011 based on the earnings of the company in the period up until 2011.

On 28 September 2007, Schibsted bought Endemol Finance BV’s share of 35 % in Metronome Film & Television AB for NOK 122 million. The transaction gave rise to a goodwill of NOK 51 million. Excess values attributable to assets are charged directly to equity with NOK 23 million. After the completion of the transaction, Schibsted owns 100 % of the shares in Metronome Film & Television AB.

During 2007 Schibsted has bought 7,624 shares in Harstad Tidende for a total of NOK 42 million. The transaction gave rise to a goodwill of NOK 7 million.The block of shares constitutes 27.49 % of the total share capital in the company. The transaction has increased Schibsted’s ownership stake from 51.45 % to 78.94 %.

In addition to the above Schibsted made several smaller acquisitions in 2007.

Amounts allocated to goodwill will mainly relate to the acquired companies’ market position, work force and synergies with the Group’s other activities.

In connection with material acquisitions, Schibsted is using the expertise of external consultants when the valuation of assets and liabilities is performed.

In February Schibsted and SPIR Communications made an agreement to merge parts of the French operations of Schibsted International Classifieds (previously Trader Classified Media) with the French online car portal Caradisiac, which is owned by SPIR. The execution of the agreement implied approval by the French competition authorities. Their approval was given in September. The fusioned company is owned 50 % by Schibsted and 50 % by SPIR and is included as a joint venture. The transaction did not give material accounting effects for Schibsted.

In February Schibsted sold all its 1,039,560 shares in Asker og Bærums Budstikke ASA for NOK 46 million. The block of shares constituted an ownership of 10.1 %. The purchasers were Asker og Bærums Budstikke ASA, 1,030,000 shares, and Stiftelsen Magnus Blikstads Stipendiefond, 9,560 shares. The accounting gain for Schibsted was NOK 25 million and is included in financial income, see note 10.

In 2006 Scanpix Scandinavia and Bonnier sold 20 % each in the joint venture Scanpix Sweden to Tidningarnas Telegrambyrå AB (TT). At the same time, TT obtained a right, but not an obligation, to buy the remaining 60 % of the shares in the company for SEK 75 million during the period from entering the agreement until 15 days after a draft for the 2006 annual account was available. This option was exercised in its entirety in February 2007 and led to an accounting gain of NOK 21 million. The gain is included in Other revenues and expenses, see note 5.

In March Schibsted sold an office building in Apotekergaten 10 in Oslo for NOK 334 million. The accounting gain for Schibsted came to NOK 198 million, and is included in Other revenues and expenses, see note 5.

In the period from May to July Schibsted acquired 3,055,438 shares in Stavanger Aftenblad for a total price of NOK 716 million. The block of shares constituted 42.21 % of the total share capital in the company. Schibsted’s shareholdings after the purchase is 5,424,078 shares, equivalent to 74.57 % of the shares in the company.

In November Schibsted sold an office building in Jenagade 22 in Copenhagen, Denmark for DKK 110 million. The accounting gain for Schibsted was NOK 72 million and is included in Other revenues and expenses, see note 5.

Purchase and sale of businesses in 2006 In 2006 Schibsted invested NOK 5,200 million in shares. Investments in subsidiaries were accounted for in accordance with the purchase method and excess values, mainly goodwill and intangible assets, were recognised in the consolidated balance sheet.

In June 2006 Schibsted acquired 50% of the shares in Sandrew Metronome AB. Up until acquisition the company was a 50% owned joint venture recognised using proportionate consolidation. In the second quarter of 2006 Sandrew Metronome AB sold its Danish and Finnish cinemas. The increased ownership share in Sandrew Metronome contributed NOK 6 million to net profit in 2006.

In July 2006 Schibsted acquired the Western European operations of Trader Classified Media (Schibsted International Classifieds). The acquisition included 100% of Trader Classified Media in France, 100% of Editoriale Secondamano in Italy, 100% of Trader Classified Media in Switzerland and 77% SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 83

of Anuntis Segundamano Holdings (Spanish and Latin American operations). At acquisition Anuntis Segundamano Holdings owned 60% of InfoJobs. All of the companies have operations within classified ads products online and offline. There exists put and call options related to the minority interests in Anuntis Segundamano Holdings and InfoJobs. The acquired business has contributed NOK 11 million (including restructuring costs) to net profit in 2006. The purchase price includes directly attributable costs of approximately NOK 50 million.

During autumn 2006 Schibsted increased its ownership in Blocket AB to 100%. The shares were acquired through a combination of cash and Schibsted shares.

In December 2006 Anuntis Segundamano Holding increased its stake in InfoJobs from 60% to 93.56% by executing an existing option agreement and a subsequent share capital increase. The total consideration by Anuntis Segundamano Holding was EUR 12.5 million.

In addition to the above Schibsted made several smaller acquisitions in 2006. With the exception for the acquisition of Trader Classified Media, no material transaction costs have been accrued for the other acquisitions.

If all business combinations had taken place with effect from 1 January 2006 the group’s operating revenues would have increased by approximately NOK 1,018 million and net income would have decreased by approximately NOK 27 million in 2006.

Based on analyses performed, the purchase price is allocated as follows to the assets and liabilities of the acquired businesses:

SCHIBSTED SANDREW INTERNATIONAL METRONOME CLASSIFIEDS BLOCKET OTHER TOTAL

Deferred tax assets - 40 - 22 62 Other intangible assets 89 1 865 - 15 1 969 Property, plant and equipment 2 69 - 8 79 Other non-current assets (15) 13 - (2) (4) Current assets 130 397 - 58 585

Equity - (1) 69 (5) 63 Pension liabilities - - - (5) (5) Deferred tax liabilities (5) (580) - 1 (584) Non-current interest-bearing loans and borrowings (2) (40) - (4) (46) Other non-current liabilities - (886) - (3) (889) Current liabilities (70) (410) - (16) (496)

Total fair value identiﬁable assets and liabilities 129 467 69 69 734

Goodwill 19 4 068 255 102 4 444

Purchase price 148 4 535 324 171 5 178

Carrying amount of assets acquired and liabilities assumed in Schibsted Classified Media at the acquisition date is assumed to reflect fair value, except for goodwill, other intangible assets and deferred tax liabilities for which the carrying amount was NOK 2,526 million, NOK 799 million and NOK 211 million, respectively.

The allocation includes the recognition of financial liabilities related to put options on the minority shareholdings in Schibsted International Classifieds.

In November 2006 Schibsted sold its shares in TV2 AS to A-pressen Nasjonale Medier AS, A-pressen TV Invest AS and Egmont Holding AS for NOK 1,150 million. The shares are equivalent to 33.37% of the total share capital in the company. The accounting gain for Schibsted was NOK 940 million.

In November 2006 Schibsted sold its shares in TV4 AB to Nordic Broadcasting Oy for SEK 270 per share, in total SEK 1,455 million. The shares are equivalent to 26.9% of the total share capital in the company. The accounting gain for Schibsted was NOK 541 million.

Schibsted’s shares in Hugin were sold in December 2006 to Euronext for EUR 4.7 million. The shares are equivalent to 25.7% of the total share capital in the company. The accounting gain for Schibsted was NOK 34 million.

In October 2006 Schibsted purchased 443,754 shares in Bergens Tidende AS for NOK 472 million in total. The shares are equivalent to 28.5% of the total share capital in the company. Schibsted’s total holding after the purchase is 823,594 shares, corresponding to 52.8% of the shares.

In December 2006 Schibsted sold its shares in ABC Startsiden AS to Telenor Telecom Solutions for NOK 81 million. The shares are equivalent to 16.6% of the total share capital in the company. The accounting gain for Schibsted was NOK 74 million.

In February 2006 Schibsted, through its subsidiary Sandakerveien 121 AS, sold an unused property reserve situated close to the printing plant in Oslo to a subsidiary of Avantor ASA. The transaction price of NOK 170 million gave Schibsted an accounting gain of NOK 111 million.

Purchase and sale of businesses in 2005 In 2005 Schibsted invested NOK 693 million in shares. Investments in subsidiaries were accounted for in accordance with the purchase method and gave rise to excess values in 2005, mainly goodwill.

In January 2005 Schibsted, through its subsidiary 20 Min Holding AG, sold its 50.5 % interest in 20 Minuten (Switzerland) AG to Express Zeitung AG, a subsidiary of Tamedia. The sale gave rise to a gain of NOK 200 million. Express Zeitung AG purchased 49.5 % of the company in 2003. The sale of the remaining 50.5 % followed the agreement signed in 2003 but the sale took place on an earlier date than originally agreed.

In April 2005 the Spanish media group Grupo Zeta acquired 20 % of the shares in 20 Minutos España through a combination of a sale of shares and a share issue. The transaction gave rise to a gain of approximately NOK 68 million which has been recognised directly in the Group’s equity.

In February 2005 Schibsted sold the Group’s printing plant in Sweden to JMS Mediasystem. During the summer of 2005 production of Aftonbladet and Svenska Dagbladet was moved to Tabloidtryck. The sale involved write-downs of plant and equipment of NOK 303 million, which were charged to the financial statements for 2004. Costs relating to demanning and the relocation of production of NOK 81 million were charged to the financial statements for 2005.

In March 2005 Schibsted sold 100 % of the shares in Schibsted Mobile AS to Aspiro AB with settlement in newly issued shares in Aspiro AB. Following the transaction Schibsted held 44.5% of the shares in Aspiro. The sale gave rise to a gain of NOK 88 million.

Schibsted sold 100% of the shares in Bokkilden AS in November 2005. The sale gave rise to a gain of NOK 11 million.

In 2005 Sandrew Metronome sold its cinema business in Sweden. In addition the distribution cooperation with Warner Home Video was modified leading to a significant reduction in the operating revenues of this joint venture.

The Swedish part of the operations in Scanpix group was reorganised in 2005 through a merger of the businesses of Scanpix Sverige and Pressens Bild and the establishment of a joint venture owned 50% by Schibsted and 50% by Bonnier. The reorganisation gave rise to a gain of NOK 6 million relating to the sale of Scanpix Sverige and created goodwill of NOK 13 million relating to the purchase of Pressens Bild.

In the first quarter of 2005 Schibsted, through its subsidiary Aftonbladet Hierta AB, acquired 95 % of the shares in TA Teleadress Information Holding AB, which, among other things, operates the number information service www.hitta.se.

In the fourth quarter of 2005 Schibsted, through its subsidiary Schibsted Søk AS, acquired 100 % of the shares in Internettkatalogen AS which operates an online yellowpages database. The final purchase price was based on the company’s results for 2005. The estimated purchase price used in the allocation of the purchase price to assets and liabilities was therefore changed in 2006.

Schibsted acquired 59.1% of the shares in Basefarm AS in the fourth quarter of 2005. Together with holdings acquired in previous years the Group’s interest in Basefarm is 73.58%. Basefarm AS is a leading participant in the provision of Internet, application and server operating services in the Nordic region.

In the fourth quarter of 2005 Schibsted acquired 100% of the shares in Mera AB which operates a dating service in Norway and Sweden.

During 2005 Schibsted invested NOK 194 million in the Swedish company TV4 AB, through, among other things, the exercise of an option agreement signed in 2004 to acquire 5.9%. Schibsted thereby increased its holding from 20.1% to 26.9%.

In addition to the above Schibsted made several smaller acquisitions in 2005.

If all acquisitions had taken place with effect from 1 January 2005 the Group’s operating revenues would have increased by approximately NOK 123 million and operating profit would have increased by approximately NOK 10 million.

EVENTS AFTER THE BALANCE SHEET DATE Sale of property Schibsted entered in January 2008 an agreement to sell its office building in Akersgaten 55 in Oslo, the VG-building. The building consists of offices and the shopping center VG-passasjen, in total just over 33,000 square meters. The sales price came to NOK 1,203 million, and the transaction gives Schibsted an accounting gain of approximately NOK 840 million. The handing over and payment is agreed to take place on 3 March 2008, and the trans- SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 85

action will be recognised in the first quarter of 2008. At Group level, the sale will lead to a net decrease in the operating profit before Other revenues and expenses (EBITA) of approximately NOK 60 million per year.

Media Norge On 26 February 2008 The Independent Media Ownership Council decided to allow the establishment of Media Norge. This means that Schibsted and the Media Norge partners will continue the process with establishing Media Norge in accordance with the Media Ownership Regulation and the conditions in the Media Ownership Council’s decision. The establishment of Media Norge implies that Schibsted will be obligated to sell all shares, 34.3% ownership, in Adresseavisen ASA and reduce the ownership to 40% in Harstad Tidende Gruppen.

The execution of the establishment of the Media Norge Group will influence on Schibsted’s Group accounts from the execution of the transaction by the fact that the Media Norge Group will be consolidated as a subsidiary of Schibsted’s Group accounts. Before the establishment, Aftenposten AS and Finn.no AS are consolidated as subsidiaries, while Bergens Tidende AS, Fædrelandsvennen AS, Fædrelandsvennen Trykkeri AS and Stavanger Aftenblad ASA are recognised as associated companies using the equity method of accounting. This will have an effect on the Schibsted Group’s operating profit and net income by the fact that these will include 100% of the result in Bergens Tidende AS, Fædrelandsvennen AS, Fædrelandsvennen Trykkeri AS and Stavanger Aftenblad ASA, while the recognition of the share of the result as Income from associated companies will cease. Correspondingly, the Group’s assets and liabilities will be affected by the fact that 100% of the assets and liabilities in Bergens Tidende AS, Fædrelandsvennen AS, Fædrelandsvennen Trykkeri AS and Stavanger Aftenblad AS will be recognised in Schibsted’s balance sheet, while the recognision as Investments in associated companies will cease.

As a consequence of the downsale in Media Norge ASA and the consolidation of Bergens Tidende AS, Fædrelandsvennen AS, Fædrelandsvennen Trykkeri AS and Stavanger Aftenblad AS, the Group’s net interest bearing debt (NIBD) will be reduced, with corresponding reductions in future net interest expenses.

The downward sale to an ownership of 50.1% will imply that the net income attributable to minority interests will increase.

NOTE 4 USE OF ESTIMATES

In many areas the consolidated accounts are affected by estimates. Important areas in which the use of estimates has significant effect on carrying amounts and thus involve a risk of changes that could affect results in future periods are described below.

The valuation of intangible assets in connection with acquisitions and the testing of property, plant and equipment and intangible assets for impairment (see Note 12 Intangible assets, investment property and property, plant and equipment) will largely be based on estimated future cash flows. Correspondingly the expected useful lives and residual values included in the calculation of depreciation will be based on estimates. The Group has activities within established media, but is also active in establishing positions at an early point in time in new media channels both through acquisitions and its own start-ups. Estimates related to future cash flows and the determination of discount rates to calculate present values are based on management’s expectations on market developments, the competitive situation, technological developments, the ability to realise synergies, interest rate levels and other relevant factors. Such estimates involves uncertainty, and management’s view, and the actual development in the matters referred to, may change over time. Changes in management’s opinion and actual developments may lead to impairment losses in future periods. The risk of changes that affect the financial statements will naturally be higher in markets in an early phase and be more limited in established markets.

Intangible assets that are not amortised are tested annually for impairment. Other assets are tested for impairment if there are indications that an asset is impaired. Such indications will typically be changes in market developments, the competitive situation and technological developments. In the same way depreciation and amortisation schedules and any residual values are reviewed periodically.

Accounting for pension liabilities (see Note 23 Pension plans) requires that financial assumptions relating, among others to the discount rate, expected salary increases, and expected increases in pensions and social security base are determined. Changes in unrecognised actuarial gains or losses from changes in assumptions affect the fair value of pension liabilities, but will affect the consolidated income statement through amortisation only when accumulated actuarial gains or losses exceed 10% of the higher of pension liabilities and plan assets.

Financial instruments are measured at fair value. When no quoted market price is available, fair value is established using different valuation tech- niques.

Net present value of future acquisition price related to the minorities put options on shares in subsidiaries are recogniced as long term debt, see note 24. The liabilities are recognised using estimated value, and the estimate can be changed in future periods as the pricing is dependent upon future fair value and / or future results. NOTE 5 OTHER REVENUES AND EXPENSES

Operating revenues and expenses that are of a non-recurring nature and are of material importance to the business segments are separated from other ordinary operating revenues and expenses and reported in a separate line in the income statement. Other revenues and expenses include:

2007 2006 2005

Restructuring costs Norway (47) (77) - Restructuring costs Sweden (95) (14) (93) Restructuring costs International (75) (40) - Gains on sale of property, plant and equipment and investment property 270 111 - Gains on sale of subsidiaries, joint ventures and associated companies 21 1 536 305 Impairment loss intangible assets - - (8) Other costs (15) (24) (20) Other income 18 - - Total 77 1 492 184

2007 Restructuring of the search operations in Schibsted Søk in Norway has been undertaken. One-off costs of NOK 42 million were mainly related to impairment of licences and severance pay. The remaining NOK 5 million of the restructuring costs in Norway are related to the downsizing programme that VG implemented in 2006. The costs for 2007 relate to Agreement-based pension (AFP).

A substantial part of the restructuring costs in Sweden relate to early retirement pensions in Aftonbladet newspaper. Furthermore, there has been restructuring in Metronome Film & Television AB (NOK 14 million).

Restructuring costs International relate to restructuring within Schibsted International Classifieds.

The sale of the main office in Apotekergaten 10 resulted in a gain of NOK 198 million in the 2nd quarter. In the 4th quarter the sale of an office building in Jenagade 22 in Copenhagen gave a gain of NOK 72 million.

During the 1st quarter Schibsted sold the joint venture Scanpix Sweden with an accounting gain of NOK 21 million.

Other costs: NOK 4 million relates to a provision concerning a legal dispute regarding the Group’s previous operations in Switzerland, see note 24. The item Other costs also includes one-off costs (NOK 11 million) related to the fraud case in Metronome.

Other income relates to an effect from changes in the pension plans in Schibsted’s subsidiaries Schibsted Trykk and Dine Penger.

2006 Restructuring costs in Norway of NOK 77 million is linked to the downsizing programme in VG AS that was implemented in 2006. The cost relate to demanning (voluntarily and through Agreement-based pension, AFP).

In Sweden the restructuring costs relate to Metronome Film & Television AB and their restructuring including change in management.

Restructuring costs International relate to restructuring after the purchase of the companies within Schibsted International Classifieds.

In the first quarter of 2006, Schibsted sold an unused property reserve close to the printing plant in Oslo. The sales price was NOK 170 million, which gave rise to an accounting gain of NOK 111 million.

Gains on sale of subsidiaries and associated companies relate to accounting gains made on sale of Schibsted’s ownership in TV 2 AS (NOK 940 million), TV4 AB (NOK 541 million), Hugin AS (NOK 34 million) and Cesam ANS (NOK 7 million). In addition, Sandrew Metronome AB sold its Danish and Finnish cinemas. The sale gave rise to an accounting gain of NOK 14 million.

Of other costs totalling NOK 24 million, NOK 16 million relate to the settlement in the dispute with graphic workers in VG. Other costs of NOK 8 million represents an accrual in connection with a legal dispute regarding the Group’s earlier activities in Switzerland.

2005 Restructuring costs in Sweden in 2005 relate to costs in connection with the demanning, relocation and sale of Tidningstryckarna of NOK 81 million, restructuring of Scanpix Sverige AB and Pressens Bild AB in connection with the merger of the companies of NOK 8 million and restructuring of Teleadress Information AB of NOK 4 million. SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 87

The financial statements for 2005 include a gain on the sale of 20 Min Switzerland of NOK 200 million, a gain on the sale of Schibsted Mobile in exchange for Aspiro shares of NOK 88 million, a gain on the sale of 50 % of Scanpix Sverige AB in exchange for 50 % of Pressens Bild AB of NOK 6 million and a gain on the sale of Bokkilden AS of NOK 11 million.

The write-down of intangible assets relates partly to the write-down of the film library in the joint venture Sandrew Metronome of NOK 6 million and partly to the write-down of an ERP system in the same group of NOK 2 million.

Other costs include NOK 11 million relating to the dispute between Verdens Gang AS and the Union of Graphic Workers at Verdens Gang AS. Pension expense recognized in 2005 related to past service cost is included in other costs. In addition, provision for early retirement pensions of NOK 9 million which relates to a provision for 16 persons in VG who have retired with an early retirement pension and a gratuity pension is included in other costs.

NOTE 6 SEGMENT INFORMATION

The executive vice presidents’ areas of responsibility are geographically based, with the main divisions into Norway, Sweden and International. 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 each business segment and the allocation of revenues, expenses, assets, liabilities and investments is based on the financial statements for these companies. All transactions between business areas are made on normal commercial terms.

Norway includes the Aftenposten and VG media houses, the publishing companies, the search engines Sesam and Internettkatalogen and common functions. Sweden includes the Aftonbladet and Svenska Dagbladet media houses, the TV/Film operations Metronome Film & Television, Sandrew Metronome and the mobile contents operations, Aspiro. International includes the operations in the Baltic Region, 20 Minutes and the international search and classified ads online operation including Schibsted Classified Media.

There are no significant differences between the allocation of operating revenues based on the location of group companies and a breakdown based on the customers’ location.

Financial statement items allocated to business segments are shown below:

INTER- ELIMIN- SCHIBSTED 2007 NORWAY SWEDEN NATIONAL ATIONS GROUP

Subscription revenues 716 376 93 - 1 185 Casual sales revenues 1 466 1 386 258 - 3 110 Advertising revenues 2 922 1 602 2 255 - 6 779 Other revenues 812 1 491 233 - 2 536 Total external revenues 5 916 4 855 2 839 - 13 610 Internal revenues 63 48 1 (112) - Operating revenues 5 979 4 903 2 840 (112) 13 610 Operating expenses (5 084) (4 527) (2 497) 112 (11 996) Depreciation and amortisation (256) (136) (194) - (586) Income from associated companies 140 11 (2) - 149 Impairment loss goodwill - (5) (3) - (8) Other revenues and expenses 168 (12) (79) - 77 Operating proﬁt (loss) 947 234 65 - 1 246

Assets 10 272 3 196 7 907 (5 384) 15 991 Of which investments in associated companies 1 751 221 29 - 2 001 Liabilities (7 277) (1 281) (7 854) 5 384 (11 028) Investments in intangible assets and property, plant and equipment 210 188 221 - 619 INTER- ELIMIN- SCHIBSTED 2006 NORWAY SWEDEN NATIONAL ATIONS GROUP

Subscription revenues 674 364 83 - 1 121 Casual sales revenues 1 337 1 314 165 - 2 816 Advertising revenues 2 488 1 344 1 309 - 5 141 Other revenues 829 1 572 169 - 2 570 Total external revenues 5 328 4 594 1 726 - 11 648 Internal revenues 23 32 9 (64) - Operating revenues 5 351 4 626 1 735 (64) 11 648 Operating expenses (4 661) (4 185) (1 593) 64 (10 375) Depreciation and amortisation (244) (102) (93) - (439) Income from associated companies 87 91 1 - 179 Impairment loss goodwill - - (10) - (10) Other revenues and expenses 999 541 (48) - 1 492 Operating proﬁt (loss) 1 532 971 (8) - 2 495

Assets 10 886 3 362 7 622 (5 321) 16 549 Of which investments in associated companies 937 224 3 - 1 164 Liabilities (8 087) (1 274) (7 340) 5 321 (11 380) Investments in intangible assets and property, plant and equipment 254 162 82 - 498

INTER- ELIMIN- SCHIBSTED 2005 NORWAY SWEDEN NATIONAL ATIONS GROUP

Subscription revenues 658 341 74 - 1 073 Casual sales revenues 1 348 1 245 43 - 2 636 Advertising revenues 2 195 1 045 534 - 3 774 Other revenues 726 1 494 129 - 2 349 Total external revenues 4 927 4 125 780 - 9 832 Internal revenues 14 25 11 (50) - Operating revenues 4 941 4 150 791 (50) 9 832 Operating expenses (4 234) (3 729) (796) 50 (8 709) Depreciation and amortisation (214) (110) (20) - (344) Income from associated companies 138 59 1 - 198 Other revenues and expenses 79 (95) 200 - 184 Operating proﬁt (loss) 710 275 176 - 1 161

Assets 4 403 3 276 841 (585) 7 935 Of which investments in associated companies 674 908 2 - 1 584 Liabilities (3 719) (1 003) (577) 585 (4 714) Investments in intangible assets and property, plant and equipment 229 92 42 - 363

Secondary reporting format for segments Shown below is a breakdown of the Group’s operating revenues, assets and investments based on the previous reporting format for the Group; Newspaper, TV/Film, publishing, Baltic and other operations. Schibsted International Classifieds that was acquired in the summer of 2006, is presented separately.

Operating revenues 2007 2006 2005

Newspaper 9 676 8 654 7 819 TV/Film 1 176 1 240 1 168 Publishing 357 377 356 Baltic 646 500 388 International Classiﬁed 1 592 709 - Other operations 459 369 271 Eliminations (296) (201) (170) Total 13 610 11 648 9 832 SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 89

Operating revenues include government grants (press subsidies Sweden) totalling NOK 57 million in 2007, NOK 57 million in 2006 and NOK 56 million in 2005. In addition barter agreements are included with NOK 61 million in 2007, NOK 60 million in 2006 and NOK 70 million in 2005.

Assets 2007 2006 2005

Newspaper 7 839 8 304 7 253 TV/Film 413 1 746 1 609 Publishing 340 304 279 Baltic 470 386 286 International Classiﬁed 6 579 7 656 - Other operations 8 880 3 285 4 503 Eliminations (8 530) (5 132) (5 995) Total 15 991 16 549 7 935

Investments in intangible assets and property, plant and equipment 2007 2006 2005

Newspaper 242 224 234 TV/Film 107 96 61 Publishing - 3 4 Baltic 95 54 26 International Classiﬁed 110 19 - Other operations 65 102 38 Total 619 498 363

NOTE 7 RAW MATERIALS, WORK IN PROGRESS AND FINISHED GOODS

Raw materials, work in progress and ﬁnished goods consist of: 2007 2006 2005

Raw materials and purchased goods 1 315 1 201 1 060 TV / Film production expenses 894 925 848 Total 2 209 2 126 1 908

NOTE 8 PERSONNEL EXPENSES AND SHARE-BASED PAYMENT

Personnel expenses consist of: 2007 2006 2005

Salaries and wages 3 283 2 705 2 185 Social security costs 726 562 436 Net pension expense (note 23) 267 241 211 Share-based payment 8 4 3 Other personnel expenses 154 147 126 Total 4 438 3 659 2 961

Number of man-years 8 973 7 220 5 226 Details of salary, bonus and other benefits provided to group management and board of directors in 2007 (in NOK 1 000):

SALARY INCL. BONUS OTHER PENSION LOAN Name: HOLIDAY PAY (PAID 2007) BENEFITS COST OUTSTANDING

Kjell Aamot 2 992 1 125 4 869 1 520 800 Trond Berger 2 188 788 2 478 1 085 800 Jan Erik Knarbakk 1 839 696 170 939 - Birger Magnus 2 397 900 2 501 1 253 - Sverre Munck 2 169 733 2 486 1 115 380 Gunnar Strömblad 2 897 1 084 1 046 2 180 -

Gain on options exercised represents the major part of other benefits.

Bonus Schibsted’s Group management has a bonus programme that is linked to the achievement of targets. The bonus for the 2007 accounting year is calculated and will be paid in June 2008. The main elements in the bonus scheme for 2007 are as follows:

–– Bonus payments are limited to a maximum of six months’ salary. –– The bonus is divided into two parts, with one related to financial targets and one to strategic themes. –– The financial criteria of the bonus should normally represent 2/3rds of the total bonus. –– The remaining 1/3rd is linked to one or more targets within selected strategic areas.

Termination payment schemes The Group CEO’s termination payment equals 24 months’ salary in addition to the six-month period of notice. If other pay or remuneration for work is received during the last 12 months of the termination-pay period, the termination pay will be reduced correspondingly. The other managers based in Norway have termination-pay schemes which provide 18 months’ salary in addition to the six-month period of notice. To the extent that termination-pay schemes are agreed on for other managers in the Group, these will not normally exceed 12 months’ salary and competition restrictions will apply during the termination-pay period. The Chairman of the Board has no special remuneration scheme that applies if he resigns.

Pension schemes The Group’s CEO is entitled and, if Schibsted so requires, obliged to retire at the age of 62 years. His full annual early retirement pension is 66 per cent of his annual salary. The retirement pension solution means that, when he reaches 67 years of age, the Group CEO will receive a retirement pension for life which, with full accrual (30 years), equals 66 per cent of his annual salary as Group CEO. He is entitled to a disability pension of 66 per cent of his salary. The spouse/cohabitant pension is 60 per cent of his retirement pension and the child pension is 15 per cent of his retirement pension.

The other managers based in Norway are entitled and, if Schibsted so demands, obliged to retire at the age of 62 years. Should the parties agree, they can retire at the age of 60 years. During the period leading up to the ordinary retirement age (67 years), they will receive a pension that is 66 per cent of their annual salary. The pension will be reduced if they have been with the Group for less than 10 years. The right to an early retirement pension lapses if the manager resigns from his/her position or is dismissed by the company due to a fundamental breach/summary dismissal. The current managers are also ensured a disability pension equal to their retirement pensions and a percentage pension for their dependants calculated on their retirement pension in the same way as for the CEO. The manager based in Sweden has a defined benefit pension insurance on a level with the Norwegian managers.

BOARD REMUNE- RATION FROM BOARD COMMITEES PENSION OTHER OTHER GROUP TOTAL MEMBERS OF THE BOARDS AND COMMITTEES REMUNERATION*) REMUNERATION COST BENEFITS COMPANIES REMUNERATION

Ole Jacob Sunde, chairman of the Board and the Compensation Committee 413 50 - - 35 498 Karl-Christian Agerup, deputy chairman of the Board 73 - - - 70 143 Monica Caneman, member of the Board and chairman of the Audit Commitee 165 30 - - 71 266 Christian Ringnes, member of the Board and the Audit Commitee 108 - - - - 108 Alexandra Bech Gjørv, member of the Board and the Compensation Committee 113 30 - - - 143 Eva Lindqvist, member of the Board and the Compensation Committee 161 - - - - 161 Audun Solberg, employee representative in the Board 110 - - - - 110 Berit Simenstad, employee representative in the Board - - - - 23 23 John A. Rein, deputy member of the Board 52 - - - 36 88 Carine Smith, deputy member of the Board ------SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 91

Per Syversen, deputy employee representative in the Board ------Hilde Kristin Mork, deputy employee representative in the Board ------Berit Bjerg, deputy employee representative in the Board ------Håkon Rene Bach Mikkelsen, deputy employee representative in the Board ------Lars A. Christensen, chairman of the Election Committee - 50 - - - 50 Gunn Wærsted, member of the Election Committee - 30 - - - 30 Nils Bastiansen, member of the Election Committee - 30 - - - 30 Cato A. Holmsen, member of the Audit Commitee 113 - - - 70 183

Former members : Tinius Nagell-Erichsen, deputy chairman of the Board and member of the Election Committee 107 30 2 302 104 - 2 543 Hilde Harbo, employee representative in the Board 169 - - - - 169 Berit Bjerg, employee representative in the Board 113 - - - - 113 Gunn Inger Aasen, employee representative in the Board 108 - - - - 108 Roger Hollund, employee representative in the Board 52 - - - - 52 Frank Johansen, deputy employee representative in the Board 22 - - - - 22 Håkon Letvik, deputy employee representative in the Board 32 - - - - 32 Øystein Simensen, deputy employee representative in the Board 42 - - - - 42 Total 1 953 250 2 302 104 305 4 914 *) 20% of the Board remunerations is linked to attendance.

Auditor Fees to the Group’s auditors for the 2007 accounting year were as follows:

OTHER TAX OTHER AUDIT ATTEST ADVISORY NON-AUDIT (NOK 1 000 EXCL VAT) SERVICES SERVICES SERVICES SERVICES TOTAL

Schibsted Group Ernst & Young AS 8 879 313 498 954 10 644 Other auditors 6 322 347 616 1 709 8 994 Total 15 201 660 1 114 2 663 19 638

Schibsted ASA Ernst & Young AS 840 - 140 126 1 106

Share-based payment Schibsteds option programme today includes the Chief Executive Officer, Executive Vice Presidents, and Managing Director and Chief Editors of Aftenposten, VG, Svenska Dagbladet and Aftonbladet. In addition the Managing Director of Metronome Film & Television AB and the Chief Operating Officer of International Classifieds are included.

The development in the number of options outstanding has been as follows: 2007 2006 2005

Outstanding 1 January 566 250 536 250 378 750 Granted 190 000 165 000 157 500 Excercised (123 750) (135 000) - Outstanding 31 December 632 500 566 250 536 250

Of which fully vested 453 333 403 750 385 000

Outstanding options as at 31 December 2007 had the following terms: EXCERCISE NUMBER Expiry date PRICE (NOK) OF OPTIONS 31. December 2008 120.00 120 000 31. December 2009 151.30 157 500 31. December 2010 179.40 172 500 *) 31. December 2011 302.10 182 500 *)

*) In February 2007 Mats Alders was granted 7,500 options in the Schibsted share. The options were granted under the same conditions as were given the other participants of the option program for the allotment of 2006.

Total exercise price for options exercised in 2007 was NOK 12.5 million. The fair value of the shares at the time of execution was NOK 31.1 million. In 2006 the total exercise price for options exercised was NOK 12.6 million while the fair value of the shares at the time of execution was NOK 26.5 million. In 2005 there were no options exercised. Below is presented options granted and options outstanding for managers included in the option programme:

OPENING AVERAGE ENDING AVERAGE BALANCE AWARDED EXERCISED EXERCISE BALANCE EXERCISE AVERAGE 1.1.2007 2007 2007 PRICE A 31.12.2007 PRICE B MATURITY

Kjell Aamot 120 000 30 000 30 000 98.00 120 000 188.00 2.5 Trond Berger 60 000 15 000 15 000 98.00 60 000 188.00 2.5 Jan Erik Knarbakk 45 000 15 000 - - 60 000 188.00 2.5 Birger Magnus 60 000 15 000 15 000 98.00 60 000 188.00 2.5 Sverre Munck 60 000 15 000 15 000 98.00 60 000 188.00 2.5 Gunnar Strömblad 30 000 15 000 7 500 120.00 37 500 223.00 3.2 Bernt Olufsen 30 000 7 500 7 500 98.00 30 000 188.00 2.5 Lena K. Samuelsson 22 500 7 500 - - 30 000 188.00 2.5 Olav Mugaas 30 000 2 500 7 500 98.00 25 000 165.00 2.2 Hans Erik Matre 22 500 7 500 7 500 120.00 22 500 211.00 3.0 Rolv Erik Ryssdal 15 000 7 500 - - 22 500 211.00 3.0 Carl Gyllfors 15 000 7 500 - - 22 500 211.00 3.0 Anders Gerdin 15 000 7 500 - - 22 500 211.00 3.0 Aslak Ona 22 500 - 7 500 98.00 15 000 136.00 1.5 Raoul Grünthal 7 500 7 500 - - 15 000 241.00 3.5 Mats Alders - 15 000 - - 15 000 241.00 3.5 Kristin Skogen Lund - 7 500 - - 7 500 302.00 4.0 Bob van Dijk - 7 500 - - 7 500 302.00 4.0 Einar Hanseid 7 500 - 7 500 98.00 - - - Torry Pedersen 3 750 - 3 750 120.00 - - - Total 566 250 190 000 123 750 632 500

A: average exercise price for options exercised during the year B: average exercise price for options in stock at the end of the year

Determination of fair value of options The fair value of options granted in the period is calculated using the Black-Scholes’ model for option pricing. The fair value in 2007 is calculated at NOK 14.4 million (2006: NOK 5.8 million and 2005: NOK 4.8 million).

Several factors have been used in the pricing model that affects the fair value of options granted. The following assumptions have been used in the calculation:

2007 2006 2005

Price on award 302.1* 179.4 151.3 ** Exercise price 302.1 179.4 151.3 Option’s duration 4 years 4 years 4 years Risk-free interest rate 5.3% 4.0% 3.5% Volatility 30.0% 30.0% 30.0%

*) The grant of options to Mats Alders (7,500), Kristin Skogen Lund and Bob van Dijk took place in February, August and October 2007 when the share price was NOK 275, NOK 254 and NOK 293.

**) The grant of options to management of Aftonbladet took place in September 2005 when the share price was NOK 181.

Volatility is a statistical measure of price fluctuations and thus describes the probability that an option in the underlying share will have a value. Expected volatility is measured as standard deviation on the share’s daily returns for the last three years.

Employees in the Group are given the opportunity each year to buy shares to value of NOK 7,500 at a 20% discount through Schibsted Employees’ Share Purchase Scheme. SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 93

NOTE 9 OTHER OPERATING EXPENSES

Other operating expenses include: 2007 2006 2005

Distribution 993 916 918 Commissions 1 035 791 695 Rent, maintenance, ofﬁce expenses and energy 471 396 339 PR, advertising and campaigns 664 512 429 Printing contracts 739 585 372 Editorial material 279 272 217 Professional fees 387 379 271 Travelling expenses 187 167 138 Other operating expenses 594 572 461 Total 5 349 4 590 3 840

The comparison between the years is effected by the fact that Schibsted Classified Media (former Trader) is consolidated with effect from 14 July 2006.

NOTE 10 FINANCIAL ITEMS

Financial income and financial expenses consist of: 2007 2006 2005

Interest income 47 38 17 Net foreign exchange gains 2 - 4 Gain on the sale of shares 41 78 61 Dividends received 1 7 9 Other ﬁnancial income 2 1 3 Total ﬁnancial income 93 124 94

Interest expenses (289) (185) (68) Net foreign exchange losses - (1) - Impairment loss investments available for sale (2) (8) (1) Other ﬁnancial expenses (20) (12) (9) Total ﬁnancial expenses (311) (206) (78) NOTE 11 TAXES

The Group’s income tax charge comprises the following: 2007 2006 2005

Current income taxes 269 142 227 Deferred income taxes 70 (5) 21 Effect of hedge accounting foreign currency (48) 51 (18) Taxes 291 188 230

The Group’s effective tax rate differs from the nominal tax rate in countries where the Group has operations. The Group’s effective tax rate is arrived at as follows:

2007 2006 2005

Profit before taxes 1 028 2 413 1 177

Estimated tax charge based on nominal tax rate in Norway 288 28.0% 676 28.0% 330 28.0% Tax effect income associated companies (42) (4.0%) (50) (2.1%) (56) (4.7%) Tax effect other permanent differences 26 2.5% (426) (17.6%) (68) (5.8%) Change in unrecognised deferred tax assets 28 2.7% (13) (0.5%) 31 2.6% Effect of tax rate differential abroad (9) (0.9%) 1 - (7) (0.6%) Taxes 291 28.3% 188 7.8% 230 19.5%

Permanent differences include, in addition to non-deductible expenses, tax-free gains on sale of shares. Such gains are included in Other revenue and expenses with regard to gains on the sale of subsidiaries and associated companies and in Financial income with regard to gains on the sale of shares categorised as Shares available for sale.

The Group’s net deferred tax liabilities (assets) are made up as follows:

Tax effect of temporary differences: 2007 2006 2005

Current items (31) (22) (41) Pension liabilities (207) (203) (211) Other non-current items 673 763 229 Unused tax losses (407) (469) (391)

Calculated net deferred tax liabilities (assets) 28 69 (414) Unrecognised deferred tax assets 286 269 219 Net deferred tax liabilities (assets) 314 338 (195)

Of which deferred tax liabilities 508 627 116 Of which deferred tax assets (194) (289) (311)

The Group’s unused tax losses are mainly related to operations in Norway, Sweden, France and Spain. The major part of the tax losses can be carried forward for an unlimited period. Only approximately 9% of the unused tax losses expire in the period up until 2017.

The development in the net deferred tax liabilities (assets) is as follows: 2007 2006 2005

As at 1 January 338 (195) (239) Change included in tax charge 70 (5) 21 Change on purchase and sale of subsidiaries (74) 522 18 Translation differences (20) 16 5 As at 31 December 314 338 (195)

Deferred tax assets are recognised when it is likely that the benefit can be realised through expected future taxable profits. The Group’s deferred tax assets are mainly related to pension liabilities and unused tax losses in the Norwegian business, losses carried forward in Sweden where the losses can be utilised against future taxable profits in the Aftonbladet Group and unused tax losses in Spain. The Group’s unrecognised deferred tax assets SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 95

mainly relate to operations in Sweden where the tax benefit cannot be utilised against future taxable profits in the Aftonbladet Group, as well as to other operations abroad where utilisation must be against the business’s own future taxable profits.

Deferred tax liabilities and assets are offset for liabilities and assets in companies which are included in local tax groups.

NOTE 12 INTANGIBLE ASSETS, INVESTMENT PROPERTY AND PROPERTY, PLANT AND EQUIPMENT

OTHER BUILDINGS INVEST- CONS- EQUIPMENT, INTANGIBLE AND MENT TRUCTION IN MACH- FURNITURE, GOODWILL ASSETS LAND PROPERTIES PROGRESS INERY VEHICLES TOTAL 1 January – 31 December 2005 Net carrying amount 1.1.2005 1 104 169 937 201 8 761 307 3 487 Additions - 84 6 1 23 103 146 363 Additions on purchase of businesses 350 73 - - - - 39 462 Disposals - (9) (24) - (3) (29) (11) (76) Disposals on sale of businesses (242) (2) - - - - (31) (275) Reclassification - 2 (5) - - - 3 - Depreciation and amortisation for the year - (54) (59) (4) - (95) (132) (344) Impairment losses - (8) - - - - - (8) Translation differences (47) (14) (4) - - (3) (6) (74) Net carrying amount 31.12. 2005 1 165 241 851 198 28 737 315 3 535

As at 31 December 2005 Cost 1 653 592 1 110 231 30 1 061 1 003 5 680 Accumulated depreciation, amortisation and impairment losses (488) (351) (259) (33) (2) (324) (688) (2 145) Net carrying amount 1 165 241 851 198 28 737 315 3 535

1 January – 31 December 2006 Net carrying amount 1.1.2006 1 165 241 851 198 28 737 315 3 535 Additions - 115 63 1 50 63 206 498 Additions on purchase of businesses 4 444 1 976 - - - - 79 6 499 Disposals - (4) - (56) - (1) (5) (66) Disposals on sale of businesses (13) - (5) - - - (14) (32) Reclassification (2) 8 6 - (54) 43 (1) - Depreciation and amortisation for the year - (133) (46) (4) - (95) (161) (439) Impairment losses (10) ------(10) Translation differences 178 84 2 - - 3 6 273 Net carrying amount 31.12. 2006 5 762 2 287 871 139 24 750 425 10 258

As at 31 December 2006 Cost 6 265 2 791 1 204 176 26 1 367 1 271 13 100 Accumulated depreciation, amortisation and impairment losses (503) (504) (333) (37) (2) (617) (846) (2 842) Net carrying amount 5 762 2 287 871 139 24 750 425 10 258 OTHER BUILDINGS INVEST- CONS- EQUIPMENT, INTANGIBLE AND MENT TRUCTION IN MACH- FURNITURE, GOODWILL ASSETS LAND PROPERTIES PROGRESS INERY VEHICLES TOTAL

1 January – 31 December 2007 Net carrying amount 1.1.2007 5 762 2 287 871 139 24 750 425 10 258 Additions - 244 6 - 80 50 239 619 Additions on purchase of businesses 698 33 - - - - 3 734 Disposals - (10) (118) - - - (13) (141) Disposals on sale of businesses (199) (126) (33) (14) - - (3) (375) Reclassification (15) 15 (184) (123) (12) 2 5 (312) Depreciation and amortisation for the year - (247) (50) - - (98) (191) (586) Impairment losses (8) (25) - - - - - (33) Translation differences (235) (81) (1) (2) (1) (3) (28) (351) Net carrying amount 31.12. 2007 6 003 2 090 491 - 91 701 437 9 813

As at 31 December 2007 Cost 6 478 2 783 786 - 94 1 413 1 363 12 917 Accumulated depreciation, amortisation and impairment losses (475) (693) (295) - (3) (712) (926) (3 104) Net carrying amount 6 003 2 090 491 - 91 701 437 9 813

The Group did not have investment property by year end 2007. An office building included in investment property was sold in 2007 (see note 5), another held for sale. An undeveloped site included in investment property in 2005 was sold in 2006, see note 5. Rental income from investment property was NOK 31 million in 2007, NOK 31 million in 2006 and NOK 30 million in 2005 and direct costs relating to investment property were NOK 8 million for the years 2005 – 2007.

Non-current assets classified as held for sale is Akersgaten 55 and amounts to NOK 312 million, see note 3.

Investment properties and property, plant and equipment, excluding land, are depreciated on a straight line basis over their useful life. Depreciation schedules take account of the asset’s residual value. Items of property, plant and equipment where material costs components can be identified with different useful lives are depreciated over the individual components expected useful life.

Depreciation and amortisation is charged based on the following useful lives: Buildings (25-50 years), Plant and machinery (5-20 years), Equipment, furniture, vehicles (3-10 years) and Intangible assets (1.5-10 years). The depreciation method, expected useful life and any residual value is assessed annually.

Intangible assets with finite useful life are as a general rule amortised on a straight line basis over the expected useful life. Film rights are amortised on a declining basis or in accordance with another systematic method depending on what is considered to best reflect the expected pattern of future economic benefits embodied in the relevant asset.

CARRYING AMOUNT 31 DECEMBER

Other intangible assets include: Expected useful life 2007 2006 2005

Trademarks Finite / Indeﬁnite 1 392 1 560 19 Film rights Finite 263 220 83 Data systems and licenses Finite 249 269 139 Customer relations Finite 186 238 - Total 2 090 2 287 241

Other intangible assets apart from large parts of the trademarks have a limited period of use. Trade marks with an indefinite life have been acquired through acquisitions and are expected to be able to generate income flows for an indefinite period.

The acquisition of Trader Classified Media has led to an increase in the Group’s intangible assets of NOK 1.9 billion. Increased intangible assets give increased yearly amortisation of approximately NOK 120 million in the first 3 year period after the acquisition in July 2006.

SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 97

Goodwill can be speciﬁed on companies as follows: Business area 2007 2006 2005

Schibsted Forlagene AS Norway 56 117 119 Dine Penger AS Norway 62 - - Basefarm AS Norway 85 87 74 Internettkatalogen AS Norway 51 51 48 Aftonbladet Hierta AB Sweden 174 187 175 Blocket AB Sweden 390 420 151 TA Teleadress Holding AB Sweden 116 126 105 20 Min Holding AG International 102 106 107 AS Eesti Meedia International 97 96 93 Schibsted International Classiﬁeds International 4 383 4 186 - Other Norway 96 83 59 Other Sweden 309 245 198 Other International 82 58 36 Total 6 003 5 762 1 165

Goodwill and other intangible assets with an indefinite useful life are not amortised but tested annually for impairment. Other intangible assets and operating assets are tested for impairment if there are indications that an asset is impaired. Such indications will typically be changes in market developments, the competitive situation or technological developments. Impairment loss is calculated as the difference between the asset’s carrying amount and the recoverable amount. The recoverable amount is the higher of the asset’s net sales value and its value in use. When the recoverable amount is based on value in use, the value in use is calculated on the basis of the net present value of expected cash flows from the asset. In calculating the value in use, management’s expectations based on experience and market knowledge are used for the first five years’ cash flows. For subsequent periods growth factors are used that do not exceed the long-term average rate of growth for the relevant market. Expected cash flows are discounted using a discount rate that takes into account the expected long-term interest rate with the addition of a risk margin appropriate for the assets being tested.

Carrying value of goodwill and other intangible assets with indefinite useful lives related to Schibsted International Classifieds is NOK 4,383 million and NOK 1,159 million, respectively. The amount allocated to identifiable intangible assets with indefinite useful lives is in its entirety related to trade marks. The amounts allocated is a consequence of the purchase price for the business when acquired in 2006 and the valuations of assets acquired and liabilities assumed in that connection.

The following key assumptions are used in the valuations – Expected cash flow projections for 5 years and declining growth rates thereafter. Expected cash flows are based on Schibsted’s assessments in connection with the acquisitions, forecasts prepared by subsidiaries and assessments by external consultants involved in the valuations – Discount rate 9.5% pretax. – Individually assessed market based royalty rates of 6.4-8.0%

In 2007 the consolidated income statement was charged with NOK 5 million relating to impairment loss on goodwill in Aftonbladet Allt Om AB, and NOK 3 million in the Lithuanian newspaper LT. In 2006 the consolidated income statement was charged with NOK 10 million relating to impairment loss on goodwill in the Lithuanian newspaper LT. In 2005 the consolidated income statement was charged with NOK 8 million relating to impairment loss on intangible assets in the swedish company Sandrew Metronome as a result of changes in the distribution and market situation.

Lease agreements Plant and machinery includes assets owned under financial lease agreements. These have a cost price of NOK 16 million and a carrying amount of NOK 5 million. Depreciation for the year amounts to NOK 8 million.

Schibsted has lease obligations relating to off-balance sheet operating assets, mainly office buildings.

Future total minimum payments under non-cancellable operational leases are as follows: 2007

2008 241 2009 – 2012 718 After 2012 158 NOTE 13 INVESTMENTS IN ASSOCIATED COMPANIES

The development in the carrying amount of investments in associated companies is as follows: 2007 2006 2005

Carrying amount 1 January 1 164 1 584 1 202 Implementation of IAS 32/39 - - (4) Additions/disposals 767 (2 044) 378 Income from associated companies 149 1 694 198 Dividends received (70) (132) (157) Other changes (9) 62 (33) Carrying amount 31 December 2 001 1 164 1 584

The share of the income and carrying amount breaks down as follows:

LOCATION OWNERSHIP % INCOME CARRYING AMOUNT 31.12.2007 2007 2006 2005 2007 2006 2005

Adresseavisen ASA Trondheim 36 32 25 25 170 149 136 Bergens Tidende AS Bergen 53* 56 26 22 646 610 121 Fædrelandsvennen AS Kristiansand 25 13 6 14 57 50 48 Stavanger Aftenblad ASA Stavanger 75* 34 22 30 859 109 99 TV 2 AS Bergen - - 945 47 - - 248 TV 4 AB Stockholm - - 602 48 - - 726 Aspiro AB Stockholm 43 8 27 5 187 193 157 Hugin ASA Oslo - - 34 (1) - - 2 Others 6 7 8 82 53 47 Total 149 1 694 198 2 001 1 164 1 584

Of which reported as Other revenues and expenses - 1 515 - Of which reported as Income from associated companies 149 179 198

* Schibsted owns 52.8% of the shares in Bergens Tidende and 74.6% of the shares in Stavanger Aftenblad ASA, but the companies are treated as associated companies because of restrictions on voting rights. The articles of association in Bergens Tidende includes a clause saying no shareholder can vote for a total of more than 1/10 of the shares. For Stavanger Aftenblad the voting rights are restricted to 5% of the shares.

Schibsted has on 28 February entered into an agreement with Montrica Global Opportunities Master Fund, giving them the right to sell up to 1,446,209 shares in Stavanger Aftenblad to Schibsted for NOK 250 per share. According to the new agreement, the right to sell can be exercised from the third business day prior to expiration date and until the expiration date, 1 May 2008. Until 1 April 2008, Schibsted has the opportunity to determine that the expiration date shall be 1 May 2009. In this case, the right can be exercised from the third working day prior to the new expiration date and on the new expiration date. In this case the strike price will be NOK 278 per share.

Market prices are available for shares in Adresseavisen ASA, Stavanger Aftenblad ASA and Aspiro AB. In the case of some of the companies liquidity is limited and there is a large difference between the bid and offer prices. Based on the last traded prices the fair value of the shares in Adresseavisen ASA is NOK 453 million, Stavanger Aftenblad ASA NOK 966 million and Aspiro AB NOK 93 million. The carrying amount related to Aspiro exceeds the market capitalisation of Schibsted’s ownership share. Based on expectations to the associated company’s future earnings, Schibsted is of the opinion that it is not necessary to recognise any impairment loss.

The Group’s share of assets, liabilities, operating revenues and net income in associated companies is as follows:

2007 2006 2005

Assets 2 893 1 775 2 534 Liabilities (892) (611) (950) Carrying amount 2 001 1 164 1 584

Operating revenues 1 759 2 620 2 280 Net income 149 174 194 SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 99

NOTE 14 INTEREST-BEARING LOANS AND BORROWINGS

The Group has the following composition and maturity structure on its interest-bearing debt:

Short-term Long-term 31.12.2007 31.12.2006 31.12.2005 31.12.2007 331.12.2006 31.12.2005

Overdraft 5 30 105 - - - Commercial Paper issues 1 300 - - - - - Bond issues - 600 300 - - 600 Bank loans 2 837 4 631 73 747 643 379 Financial lease agreements 6 8 7 1 9 9 Other loans 58 1 8 9 88 90 Total 4 206 5 270 493 757 740 1 078 Maturity between 1 and 2 years 71 445 679 Maturity between 2 and 5 years 410 157 223 Maturity after more than 5 years 276 138 176 Total 757 740 1 078

Almost all of the Group’s interest-bearing debt is at floating interest rates. For information on interest rate risk, see note 26.

For the fair value of interest-bearing debt, see note 26, Financial market risk.

Carrying amount in NOK million of interest-bearing debt breaks down as follows by currency: 31.12.2007 31.12.2006 31.12. 2005

NOK 1 531 940 1 038 SEK 5 1 32 EEK 8 5 - EUR 3 394 5 007 408 USD 25 57 93 Total 4 963 6 010 1 571

The bond of NOK 600 million (issued in 2003) matured in October 2007, and Schibsted Finans AS has no issues in the Bond market as per year-end.

The Group has two bank loans in EUR totalling EUR 35 million. One loan is for EUR 10 million and has a term of 10 years from 1999. The other loan is for EUR 25 million and has a term of 12 years from 2004. The interest terms on both loans are six month Euribor with the addition of a margin.

The Group has a bank loan of USD 5 million. The loan has a term of 12 years from 1996 and interest and instalments are hedged against Norwegian kroner through a currency and interest rate swap. After taking account of the hedging, the interest terms are six month NIBOR with the addition of a margin.

The Group has a bank loan of NOK 202 million. The loan has a term of 12 years from 2007 and the interest terms are six month NIBOR with the addition of a margin.

In the autumn of 2005 Schibsted Finans arranged a new syndicated multi-currency loan facility for a total of EUR 250 million, syndicated to eight Norwegian and international banks. The facility is a 5-year drawing facility with an option to extend for a further one year. The option has been exercised and the final maturity of the facility is in December 2011. EUR 35 million was drawn on the facility at the end of 2007. The facility has interest terms based on Euribor plus a margin. Schibsted must pay a commitment fee to maintain the facility’s availability. The commitment fee is calculated on the undrawn part of the facility.

The acquisition of Trader Classified Media was financed through bridge financing from DnBNOR and Nordea to Schibsted Finans in June 2006. This loan facility originally totalled EUR 680 million with maturity in June 2007. During 2007 the total facility has been reduced to EUR 400 million and the maturity has been extended to 30 September 2008. EUR 335 million was drawn on the facility at the end of 2007. The interest term on the facility is based on Euribor with the addition of a margin. Schibsted must pay a commitment fee to maintain the facility’s availability.

Schibsted Finans started in March 2007 to issue loans in the Norwegian Commercial Paper Market and at the end of 2007 these loans amounted to totally NOK 1,300 million.

Other loans consist mainly of loans from minority owners in subsidiaries. Schibsted’s loan agreements contain covenants regarding the ratio of net interest-bearing debt (NIBD) to the operating profit before depreciation (EBITDA). The ratio should be at a maximum of 3.0. Nevertheless, it is possible to report NIBD/EBITDA < 4.0 for up to 4 quarters during the term of the loan facility. In addition, the loan agreements contain negative pledge clauses that limit the Group’s ability to provide or establish mortgages or other security in excess of what follows from normal operations. The Group was within the above-mentioned requirements by a good margin as at 31.12.2007.

The Group has provided guarantees of NOK 27 million. Mortgage debt amounts to NOK 121 million, of which NOK 101 million is Schibsted’s share of mortgage debt in joint venture. Carrying amount of assets pledged as security is NOK 228 million.

Schibsted has long-term credit facilities totalling approximately NOK 1.7 billion through the unutilised syndicated multi-currency loan facility of EUR 250 million. In addition, Schibsted has short-term credit facilities of NOK 400 million in the form of unutilised overdraft limits under the Group’s cash pool system with Danske Bank, see Note 16.

NOTE 15 SHORT-TERM AND LONG-TERM FINANCIAL INSTRUMENTS

The development in carrying amount of financial instruments categorised as available for sale is as follows: 2007 2006 2005

As at 1 January 159 193 223 Additions 69 18 36 Disposals (96) (27) (97) Additions / disposals on purchase / sale of subsidiaries - - (2) Reclassified to associated companies or subsidiaries (1) (2) (16) Changes in fair value Implementation of IAS 32 and 39 - - 63 Change recognised in equity 54 (9) 28 Change recognised in profit or loss (2) (8) (1) Value change from equity on disposals (25) (10) (37) Value change from equity on reclassification - - (2) Translation differences - 4 (2)

As at 31 December 158 159 193 Of which short-term 3 78 56 Of which long-term 155 81 137

The Group has the following short-term and long-term ﬁnancial instruments: 2007 2006 2005

Shares Listed Canada 10 10 20 Unlisted 145 71 117 Short-term interest-bearing securities 3 78 56 Total short-term and long-term ﬁnancial instruments 158 159 193

NOTE 16 CASH AND BANK DEPOSITS

Cash and bank deposits include the following: 2007 2006 2005

Cash and bank 842 2 189 601 Interest-bearing securities - 51 75 Total 842 2 240 676

Schibsted has a cash pool system with Danske Bank in which almost all the Nordic subsidiaries are included. The cash pool system has been established to contribute to an optimal liquidity management for Schibsted.

As a result of minority shareholders, the companies Aftonbladet and Harstad Tidende Group are not included in the Group’s cash pool system.

The Group has a drawing limit under the cash pool system of NOK 400 million. At the end of 2007 nothing was drawn on this limit.

Surplus liquidity is mainly placed on the Group account or in the short-term money market. The reason for the high bank deposit at December 31, 2006 was the payment of SEK 1,455 million relating to the sale of TV4 just prior to the turn of the year. This payment was used as settlement of debt in January 2007. SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 101

The deposit and borrowing interest rates in Danske Bank are based on Danske BID and Danske BOR. Danske BID and Danske BOR are set daily by the bank on the basis of market interest rates in the individual countries. Under the group account system marginalnetting takes place across national frontiers.

Other bank deposits are credited with interest based on the bank’s daily deposit rates in the individual countries.

NOTE 17 TRADE AND OTHER RECEIVABLES

Trade receivables and other receivables consist of: 2007 2006 2005

Trade receivables 1 877 1 666 1 056 Less expected losses (71) (77) (30) Trade receivables (net) 1 806 1 589 1 026 Prepaid expenses and accrued revenues 360 374 238 Financial derivatives (see Note 26, Financial market risk) 10 - 5 Other prepayments and receivables 290 255 173 Total 2 466 2 218 1 442

NOTE 18 INVENTORIES

Inventories consist of: 2007 2006 2005

Books 57 57 52 Newsprint purchased 39 47 28 DVDs and video cassettes 27 21 14 Total 123 125 94

NOTE 19 OTHER NON-CURRENT ASSETS

2007 2006 2005

Loans to joint ventures and associated companies 9 7 20 Prepaid costs 43 58 60 Other receivables 30 31 20 Total 82 96 100

There are no significant differences between the fair value and the carrying amount of long-term receivables as a result of all receivables carrying a market interest rate.

NOTE 20 EARNINGS PER SHARE

The development in share capital and other paid-in capital is set out in the Statement of changes in equity. The development in the number of issued and outstanding shares is as follows: NUMBER OF OUTSTANDING TREASURY SHARES ISSUED As at 1 January 2005 67 929 530 1 320 470 69 250 000 Purchase of treasury shares (798 350) 798 350 - Sale of treasury shares 37 269 (37 269) - As at 31 December 2005 67 168 449 2 081 551 69 250 000 Purchase of treasury shares (1 670 950) 1 670 950 - Sale of treasury shares 1 378 879 (1 378 879) - As at 31 December 2006 66 876 378 2 373 622 69 250 000 Purchase of treasury shares (1 016 900) 1 016 900 - Sale of treasury shares 155 186 (155 186) - As at 31 December 2007 66 014 664 3 235 336 69 250 000

The company’s share capital consists of 69,250,000 shares of NOK 1 par value. No shareholder may own or vote at a shareholders’ meeting for more than 30% of the shares. The Annual Shareholders’ Meeting has given the Board authority to acquire own shares up to 6,925,000 shares (10 %). The authority was renewed at the Annual Shareholders’ Meeting on 10 May 2007 for a period until the Annual Shareholders’ Meeting in 2008. At the Annual Shareholders’ Meeting on 8 May 2008 the Board will present a resolution to extend this authorisation until the Annual General Meeting in 2009.

Schibsted purchased 798,350 shares in 2005 for an aggregate consideration of NOK 141 million. 37 269 shares were sold to Schibsted Employees’ Share Purchase Scheme in 2005 at a price of NOK 180 in connection with an offer to employees to purchase shares at a discounted price.

In 2006 Schibsted purchased 1,670,950 shares for an aggregate consideration of NOK 305 mill.

Schibsted sold 1,378,879 own shares in 2006. 135,000 shares were sold to managers in the Group in connection with the exercise of options. Reference is made to the Board of Director’s Report for a description of the option programme. Of these shares, 120,000 where sold at a price of NOK 93 and 15,000 at a price of NOK 98. 41,697 shares were sold to Schibsted Employees’ Share Purchase Scheme in 2006 at a price of NOK 201.50 in connection with an offer to employees to purchase shares at a discounted price. Schibsted used 1,202,182 own shares as payment in connection with the purchase of minority shares in Blocket AB.

In 2007 Schibsted has purchased 1,016,900 shares for an aggregate consideration of NOK 274 mill.

In 2007 Schibsted has sold 155,186 own shares. 123,750 shares were sold to managers in the Group in connection with the exercise of options. Of these shares, 105,000 where sold at a price of NOK 98 and 18,750 at a price of NOK 120. 31,436 shares were sold to Schibsted Employees’ Share Purchase Scheme in 2007 at a price of NOK 302 in connection with an offer to employees to purchase shares at a discounted price.

As at 31.12.2007 Schibsted held 3,235,336 treasury shares. The background to the purchases is that the Board of Directors has considered the repurchase of shares as advantageous compared with alternative investments and in order to optimise the capital structure of the Group. Parts of the shares are acquired in order to be used in connection with the employee share programmes.

During the first quarter of 2008 the company has bought 1,105,000 own shares and sold 12,500 own shares so that the holding as at 27 March 2008 was 4,327,836 shares.

Earnings per share are calculated on net income attributable to majority interests divided by the average number of shares outstanding: 2007 2006 2005

Net income attributable to majority interests 635 2 143 874 Average number of shares outstanding 66 718 726 65 903 518 67 727 417 Earnings per share (NOK) 9.52 32.52 12.91

Diluted earnings per share are calculated on the net income attributable to majority interests divided by the average number of shares outstanding, adjusted for the dilutive effect of all potential shares.

The dilutive effect is arrived at as the difference between the number of shares which can be acquired on exercise of outstanding options and the total number of shares which could be acquired at fair value (calculated as the average price of the Schibsted share in the period) for the consideration which is to be paid for the shares which can be acquired based on outstanding options.

2007 2006 2005

Net income attributable to majority interests 635 2 143 874 Average number of shares outstanding 66 718 726 65 903 518 67 727 417 Adjustment for dilutive effect options outstanding 206 030 141 629 130 638 Average number of shares outstanding (diluted) 66 924 756 66 045 147 67 858 055 Diluted earnings per share (NOK) 9.49 32.45 12.89

Earnings per share - adjusted and Diluted earnings per share - adjusted are calculated on the net income attributable to majority interests corrected for items reported in the income statement on the lines Other revenues and expenses (after tax) and Impairment loss goodwill. The number of shares that is included in the calculation is the same as the number for Earnings per share and Diluted earnings per share, as described above. SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 103

2007 2006 2005

Net income attributable to majority interests 635 2 143 874 Other revenues and expenses (77) (1 492) (184) Tax and minority effect of other revenues and expenses (12) (10) (30) Impairment loss goodwill 8 10 - Net income attributable to majority interests – adjusted 554 651 660 Average number of shares outstanding 66 718 726 65 903 518 67 727 417 Earnings per share – adjusted (NOK) 8.31 9.87 9.76 Average number of shares outstanding (diluted) 66 924 756 66 045 147 67 858 055 Diluted earnings per share – adjusted (NOK) 8.28 9.85 9.74

NOTE 21 DIVIDENDS

Dividends were paid in 2007, 2006 and 2005 in amounts of NOK 334 million (NOK 5.00 per share), NOK 278 million (NOK 4.25 per share) and NOK 220 million (NOK 3.25 per share).

At the company’s Annual Shareholders’ Meeting on 8 May 2008 a dividend of NOK 6.00 per share will be proposed (total NOK 390 million). No provision for this dividend has been recognised in the Group’s balance sheet as at 31 December 2007.

NOTE 22 OTHER CURRENT LIABILITIES

Other current liabilities include: 2007 2006 2005

Trade payables 852 877 494 Prepayments from customers 572 485 391 Public duties payable 460 437 276 Accrued salaries 460 394 346 Accrued expenses 465 414 308 Financial derivatives (see Note 26, Financial market risk) 5 11 45 Restructuring costs 72 71 31 Other 177 204 204 Total other current liabilities 3 063 2 893 2 095

The Group has no significant liabilities with an uncertain payment date. The restructuring costs relate to accepted redundancy packages.

NOTE 23 PENSION PLANS

Schibsted has had collective pension plans with Vital Forsikring ASA for its employees in Norwegian companies. These plans are mainly established as defined benefit plans, but certain companies have established defined contribution plans. The companies in Norway are obligated to follow the Act on Mandatory company pensions. The companies’ pension schemes meet the requirements of that Act. The policies relating to defined benefit plans in the respective companies are virtually uniform. The main terms are a 30-year period of employment to obtain full pension, approximately 66 % retirement pension level from 67 years, and spouse and child pensions. As at 31.12.2007 the collective pension schemes covered approximately 2,200 working members and approximately 1,000 pensioners. Schibsted decided on December 21, 2007 to transfer the Norwegian defined benefit plans to Storebrand Livsforsikring AS, with transfer of risk at December 30, 2007. Estimated pension premiums for the above mentioned plans in 2008 is approximately NOK 85 million.

In addition to the pension obligations that are covered through collective service pension schemes, the Group’s Norwegian companies have unfunded pension liabilities. The pensions relate to persons not included in the collective pension plans, supplemental pensions for salaries above 12G, Agreement- based pension (AFP), early retirement pensions as well as disability pensions for the companies which do not have insured disability pensions.

The Group’s companies outside Norway have pension plans in accordance with local practice and local legislation. The greater part of the Group’s pension schemes in Sweden are established in multi-employer plans. These multi-employer plans are defined benefit plans, but the Group does not have access to the necessary information for the accounting years 2005, 2006 and 2007 in order to recognise these plans as benefit plans in the financial statements, and in accordance with IAS 19.30 the plans have been accounted for as defined contribution plans. Approx. 65% in 2007, approx. 50% in 2006 and approx. 60% in 2005 of the costs reported under Pension expenses – defined contribution plans relate to such multi-employer plans. The development in the net pension liability is as follows: 2007 2006 2005

As at 1 January 729 756 761 Net pension expense – defined benefit plans 156 172 163 Contributions / benefits paid (141) (204) (172) Purchase and sale of subsidiaries - 5 4 As at 31 December 744 729 756

The Group’s net pension expense is made up as follows: 2007 2006 2005

Current service cost 118 106 98 Interest cost on the pension obligation 112 111 117 Expected return on plan assets (102) (98) (95) Net actuarial gain / loss recognised 2 - - Past service cost and other special events 4 29 20 Administrative expenses 3 3 3 Social security tax 19 21 20 Net pension expense - defined benefit plans 156 172 163 Pension expense - defined contribution plans 98 87 68 Net pension expense 254 259 231 Of which included in Personnel expenses 267 241 211 Of which included in Other revenues and expenses (13) 18 20

The Group’s net pension liability as at 31.12 was made up as follows: 2007 2006 2005

Present value of funded obligations 2 133 2 359 2 288 Plan assets (1 858) (1 888) (1 767) Present value of funded obligations, net 275 471 521 Present value of unfunded obligations 364 207 224 Unrecognised net actuarial gains/losses 16 (43) (94) Social security tax 89 94 105 Net pension liability 744 729 756

The following principal assumptions have been used in calculating net pension expenses and the net pension obligations for the Group’s defined benefit plans: Pension expense Pension obligation 2007 2006 2005 31.12.2007 31.12.2006 31.12.2005

Discount rate 4.50% 4.50% 5.00% 5.00% 4.50% 4.50% Expected return on plan assets 5.50% 5.50% 6.00% - - - Expected salary increases 4.50% 3.50% 3.50% 4.50% 4.50% 3.50% Expected social security base adjustment 4.25% 3.00% 3.00% 4.25% 4.25% 3.00% Expected pension increases 1.60% 2.50% 2.50% 2.25% 1.60% 2.50% Use of agreement based pension (AFP) 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% Demographic assumption mortality rate K1963 K1963 K1963 K2005 K1963 K1963

The Group’s plan assets have the following composition as at 31.12: 2007 2006 2005

Shares 25% 30% 23% Short-term bonds 22% 21% 18% Money market investments 7% 4% 17% Real estate 16% 13% 12% Long-term bonds 28% 30% 27% Other 2% 2% 3% Total 100% 100% 100%

The actual return on plan assets (value-adjusted return in Vital) was approximately 9% in 2007, approximately 8% in 2006 and approximately 8% in 2005. SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 105

In 2005 a judgement was given in the legal proceedings brought by the Union of Graphic Workers at Verdens Gang AS against Verdens Gang AS regarding the company’s pension plan. The dispute was about which elements of wages are to be included in the pension base. An appeal was filed against the judgement, and an out-of-court settlement was entered into in 2006. The settlement implies that the shift supplements and certain other supplements to the fixed wage will be included in the pension base with effect from 1st of May 2001. In addition, VG has to pay a cash consideration to the graphic workers which is distributed to the approx. 70 prosecutors, employed and the retired graphic workers. The settlement also affects other groups of employees as the supplements will be included in the pension base for all employees with effect from 1 May 2001.

NOTE 24 OTHER NON-CURRENT LIABILITIES

Other long term debt includes: 2007 2006 2005

Financial liability related to minority interest put options 1 465 907 - Other obligations 17 14 - Other post-employment beneﬁts 32 27 - Other non-current liabilities 43 8 - Total other non-current liabilities 1 557 956 -

A put / call option exists between Schibsteds subsidiary Anuntis Segundamano Holdings and the minority shareholder Primerama (23 %). Schibsted has a call option on 12% of the shares owned by Primerama starting in July 2009, and on the remaining shares starting in July 2013. Primerama has put options on their shares until 2019. All options are exercisable at market value. Estimated present value of future exercise price is at December 31, 2007 approximately EUR 154 million (approximately EUR 90 mill. at December 31, 2006).

When Schibsted acquired 60% of InfoJobs in July 2006 (owned by Anuntis Segundamano Holdings) an option to purchase the minority shareholders of InfoJobs (Grupo Intercom) at a maximum price of EUR 25 million was included in the transfer. In December 2006, Anuntis Segundamano Holding increased its stake in InfoJobs from 60% to 93.56% by executing the existing option agreement between Anuntis Segundamano and Grupo Intercom and a subsequent share capital increase. The total consideration by Anuntis Segundamano is EUR 12.5 million. In conjunction with the execution of this agreement, Anuntis Segundamano and Grupo Intercom have entered into a new shareholding agreement, entailing amongst other, that Grupo Intercom will retain a 6.44 % shareholding in InfoJobs. This shareholding is governed by mutual call put arrangements, the conditions of which will depend on the financial performance of InfoJobs. Estimated present value of future exercise price is at December 31, 2007 approximately EUR 30 million (approximately EUR 20 mill. at December 31, 2006).

Change in liability, exceeding change reflecting retained earnings related to the minority’s shareholding is recognised as goodwill.

The options are measured at net present value, and an interest expense of approximately NOK 40 million is debited in the financial statement in 2007 (approximately NOK 20 mill. in 2006).

20 Minutes is involved in legal proceedings related to the early termination of a supply agreement in May 2002. The issue is related to the Swiss operations disposed of in 2005, but Schibsted is responsible for any potential liability. The dispute is expected to be resolved during the first half of 2008 and NOK 17 million is accrued in the consolidated financial statements at December 31, 2007 in relation to the likely outcome of these proceedings.

NOTE 25 INTEREST IN JOINT VENTURES

Significant operations accounted for as joint ventures are specified below:

OWNERSHIP AS AT 31 DECEMBER Company 2007 2006 2005 Location Segment Business 20 Minutes France S.A.S 50% 50% 50% Paris International Free newspapers AS Arjakirjade Kirjastus 50% 50% 50% Tallinn International Magazines AS SL Õhtuleht 50% 50% 50% Tallinn International Newspapers Car & Boat Media S.A.S 50% - - Paris International Classifieds on paper and Internet Editions Aixoises Multimedia S.A.S 50% 50% - Paris International Classifieds on the Internet Fellesdistribusjonen Østfold AS 50% 50% 50% Fredrikstad Norway Distribution Romerike Mediadistribusjon AS 34% 34% 34% Kjeller Norway Distribution Express Post AS 50% 50% 50% Tallinn International Distribution Finn Tech AS - - 50% Oslo Norway Technology development Sandrew Metronome AB - - 50% Stockholm Sweden Distribution and rights Scanpix Sweden AB (former Pressens Bild – Scanpix AB) - 30% 50% Stockholm Sweden Picture agency Willhaben Internet Service GmbH & Co KG 50% 50% - Vienna International Classifieds on the Internet

In 4th quarter 2007 Car & Boat Media Group was established as a result of a merger of parts of the French operations of Schibsted International Classifieds and the French online car portal Caradisiac. Scanpix Sweden AB was sold during 2007. The following amounts are included in the Group’s income statement and balance sheet from joint ventures subject to using proportionate consolidation: 2007 2006 2005

Operating revenues 484 526 680 Operating expenses (500) (553) (704) Operating proﬁt before impairment of goodwill and other revenues and expenses (16) (27) (24) Proﬁt (loss) before taxes (17) (15) (42)

Non-current assets 108 41 172 Current assets 351 183 285 Total assets 459 224 457 Non-current liabilities 198 70 92 Current liabilities 295 169 235 Total liabilities 493 239 327 Net assets (liabilities) (34) (15) 130

NOTE 26 FINANCIAL MARKET RISK

Classification of the Groups financial assets and liabilities:

Financial assets Available- Non- Balance and liabili- Loans and for-sale Other financial as of ties at fair receiva- financial financial instru- 31.12.07 value bles assets liabilities ments Deferred tax assets 194 - - - - 194 Intangible assets 8 093 - - - - 8 093 Property, plant and equipment 1 720 - - - - 1 720 Investments in associated companies 2 001 - - - - 2 001 Long-term financial instruments 155 - - 155 - - Other non-current assets 82 - 39 - - 43 Inventories 123 - - - - 123 Trade and other receivables 2 466 10 2 096 - - 360 Short-term financial instruments 3 - - 3 - - Cash and bank deposits 842 - 842 - - - Non-current assets held for sale 312 - - - - 312 Total assets 15 991 10 2 977 158 - 12 846

Deferred tax liabilities 508 - - - - 508 Pension liabilities 744 - - - - 744 Long-term interest-bearing loans and borrowings 757 - - - 757 - Other non-current liabilities 1 557 - - - 1 508 49 Short term interest-bearing loans and borrowings 4 206 - - - 4 206 - Income tax payable 193 - - - 193 - Other current liabilities 3 063 5 - - 2 486 572 Total liabilities 11 028 5 - - 9 150 1 873

There are no significant differences between the carrying amounts and fair value of the Group’s financial instruments. Fair value of financial instruments is based on quoted prices in an active market if such markets exist. If an active market does not exist, fair value is established by using a valuation tech- nique that is expected to provide a reliable estimate of the fair value.

The fair value of the group’s financial derivatives is as follows: Asset Liabilities 2007 2006 2005 2007 2006 2005

Forward contracts 10 - 1 - 9 45 Interest and currency swap – for trading purposes - - 4 5 2 - Total 10 - 5 5 11 45 SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 107

Foreign exchange risk Norwegian kroner are Schibsteds base currency, but the Group is also exposed to changes in other countries’ exchange rates, mainly the Euro and Swedish kronor and Estonian kroons, through its businesses outside Norway. Schibsted has foreign exchange exposure relating to both balance sheet monetary items and the translation of assets in foreign operations. Schibsted uses loans in foreign currencies and forward contracts to reduce the foreign exchange exposure. As at 31.12.2007 the group had entered into several forward contracts involving the purchase and sale of currencies for this purpose.

As at 31.12.2007 Schibsted had the following forward contracts which mature in 2008: Currency Amount NOK Forward contracts, sale EUR 170 1 353 Forward contracts, sale SEK 760 643 Forward contracts, sale EEK 172 88 Forward contracts, sale SGD 14 51 Forward contracts, purchase DKK 35 37 Forward contracts, purchase SEK 275 233

Currency gains and losses relating to forward contracts which hedge net investments in foreign businesses are recognised in equity until the foreign operation is disposed of. As at 31.12.2007 forward contracts for the sale of SEK 760 million, EUR 76 million and SGD 14 million are related to hedging net investments in foreign operations. The fair value of the contracts accounted for as hedges was NOK 8 million. Other currency gains and losses are recognised in the income statement on an ongoing basis under Other financial income or expenses. The fair value ot other contracts was NOK 2 million.

Cash flow in foreign currencies relating to investments or significant individual transactions is hedged by using financial instruments. At the year-end the group had purchased SEK 275 million related to purchase of raw materials for 2008. The fair value of the contracts was NOK (2) million. The Group’s foreign exchange exposure relating to operations is low, since most of its sales take place in the individual business’s own home country.

Schibsted has an interest and currency swap which hedges interest and instalments on a USD loan against NOK, see Note 14, Interest-bearing debt. The fair value of the derivative as at 31.12.2007 was NOK (5) million.

Interest rate risk Schibsted has floating interest rates on its long-term debt, see Note 14, Interest-bearing debt.

As at 31.12.2007 almost 100 per cent of the Group’s debt was at floating interest rates. For each 1 per cent change in floating interest rates, Schibsted’s interest costs change by approximately NOK 50 million.

The Group has substantial pension liabilities. The pension liabilities provide a natural hedge for its floating rate debt since the present value of the liabilities decreases on a rise in interest rates. This reduces the need to hedge the interest rate on the Group’s interest-bearing debt.

In the autumn of 2005 Schibsted Finans entered into two interest rate derivative contracts relating to parts of the Group’s debt. The instruments give an interest calculation based on average 6 month NIBOR (the average of daily observations). The instruments give lower variability in the average interest rate than the interest rate that Schibsted will pay on ordinary NIBOR with an observation once each coupon period. The fair value of the instruments was zero at the year-end.

Raw materials risk Schibsted is a consumer of newsprint and is therefore exposed to price changes. A change in the price of 1 per cent has an impact on raw materials costs for the Group of approximately NOK 10 million per year. Newsprint prices in Norway and Sweden are negotiated annually with suppliers and have already been fixed for 2008.

Share price risk At the end of 2007 Schibsted had limited exposure to the stock market and thus a limited risk from a fall in stock markets.

Credit risk The Group has recorded a low level of losses relating to turnover, see Note 17 Trade receivables.

There is a low credit risk relating to the Group’s circulation revenues since many of the Group’s products are sold on the basis of prepayment (newspaper subscriptions) or cash payment (casual sale newspapers). For large parts of the Group’s advertising revenue, deposit schemes and credit insurance have been established.

Liquidity risk Schibsted’s long-term financing which today includes syndicated loans and bank loans, should ensure that the Group has sufficient financial flexibility.

At the end of 2006 Schibsted has a substantial long-term liquidity reserve of approximately NOK 1.7 billion and net interest-bearing debt is NOK 4,121 million. The liquidity reserve corresponds to approximately 12 per cent of the Group’s turnover. The Group has a target that the aggregate liquidity reserve should be at least 10 per cent of the next 12 months’ expected turnover. The Group has provided guarantees of NOK 27 million. Mortgage debt amounts to NOK 121 million, of which NOK 101 million is Schibsted’s share of mortgage debt in joint venture. Carrying amount of assets pledged as security is NOK 228 million.

In the autumn of 2007 Schibsted extended its drawing facility of EUR 250 million to December 2011, see Note 14, Interest-bearing debt. In addition, the bridge financing relating to the acquisition of Trader Classified Media is extended until 30 September 2008. Schibsted is planning to refinance during 2008. The refinancing risk is considered to be low.

NOTE 27 SUBSIDIARIES

The following subsidiaries were directly and indirectly owned as at 31.12.: (* = Merged with other companies in Schibsted Group)

Business segment Norway Location 2007 2006 2005

Aftenposten AS Oslo 100.00% 100.00% 100.00% Aftenposten Distribusjon AS Oslo 100.00% 100.00% 100.00% Aftenposten Forbruker AS * Oslo - 100.00% 100.00% Aftenposten Forlag AS * Oslo - 100.00% 100.00% Aftenposten Multimedia AS Oslo 100.00% 100.00% 100.00% Distribution Innovation AS Oslo 60.00% 60.00% 60.00% E24 Næringsliv AS Oslo 100.00% 100.00% - Eiendomsprofil AS Bergen 26.16% 26.16% - FINN Bil.no AS Oslo 62.00% 62.00% 62.00% FINN Eiendom.no AS Oslo 51.29% 51.29% 51.29% FINN Jobb.no AS Oslo 62.00% 62.00% 62.00% Finn Tech AS Oslo 62.00% 62.00% - Finn Torget AS Oslo 62.00% - - Finn Vekst AS Oslo 62.00% 62.00% 62.00% FINN.no AS Oslo 62.00% 62.00% 62.00% Turistinfo AS Oslo 62.00% - - Human Content AS Høvik 37.20% 37.20% - Vision Completed AS Hamar 51.29% 30.77% - Vision Completed Baltic Osaühing Tallin 51.29% - - Mediearkivet AB Stockholm 100.00% 100.00% 100.00% Mediearkivet.no AS Oslo 100.00% 100.00% 100.00% Retriever Holding AB Stockholm 100.00% 100.00% 100.00% Retriever Norge AS Oslo 100.00% 100.00% 100.00% Retriever Sverige AB Stockholm 100.00% 100.00% 100.00% Retriever Information AB Stockholm 88.00% - - Mediehusene AS Oslo 100.00% - - Småbarnsliv AS * Oslo - 100.00% - Basefarm AS Oslo 71.57% 73.58% 73.58% Basefarm AB Stockholm 71.57% 73.58% 73.58% Harstad Tidende Gruppen AS Harstad 78.94% 51.45% 50.63% Bladet Tromsø AS Tromsø 75.50% 48.96% 48.15% Brønnøysund Avis AS Brønnøysund 54.26% 32.88% 25.33% Framtid i Nord AS Nordreisa 78.05% 50.85% 50.57% Harstad Tidende AS Harstad 78.94% 51.45% 50.63% HTG Distribusjon AS Harstad 78.94% 51.45% 50.63% HTG Multimedia AS Harstad 77.82% 50.70% 49.78% HTG Trykk AS Harstad 78.94% 51.45% 50.63% Nordlandsposten AS Harstad 78.94% 51.45% 50.63% Radio 10 BA Harstad 78.94% 51.45% 50.63% Troms Folkeblad AS Finnsnes 78.94% 51.45% 50.63% TV 10 Harstad AS Harstad 78.94% 51.45% 50.63% Schibsted Eiendom AS Oslo 100.00% 100.00% 100.00% Akersgaten 55 AS Oslo 100.00% 100.00% 100.00% AS Akersgaten 34 * Oslo - 100.00% 100.00% SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 109

Business segment Norway Location 2007 2006 2005

Jenagade 22 A/S Copenhagen - 100.00% 100.00% Sandakerveien 121 AS Oslo 100.00% 100.00% 100.00% Stålfjæra 5 ANS Oslo 100.00% 100.00% 100.00% Schibsted Forlag AS (previous Schibsted Forlagene AS) Oslo 100.00% 100.00% 100.00% Boknöje AB * Helsingborg - - 100.00% Cesam Bok ANS Oslo - - 100.00% Kartago Förlag AB Stockholm 100.00% 100.00% - Schibsted Förlagen AB Stockholm 100.00% 100.00% 100.00% Schibsted Magasiner AS Oslo 100.00% 100.00% - Svenska Förlaget AB * Stockholm - - 100.00% Svenska Förlaget Holding AB * Stockholm - - 100.00% Schibsted Søk AS Oslo 100.00% 100.00% 100.00% Sesam Media AS (previous Internettkatalogen.no AS) Oslo 100.00% 100.00% 100.00% Sesam.no AS Oslo 100.00% - - Schibsted Sök AB Stockholm 100.00% 100.00% - Verdens Gang AS Oslo 100.00% 100.00% 100.00% Avisretur AS Oslo 50.10% 50.10% 50.10% Nettby Community AS Oslo 60.00% 60.00% - Radio VG AS Oslo 100.00% 100.00% 100.00% VG Multimedia AS Oslo 100.00% 100.00% 100.00% Dine Penger AS Oslo 100.00% 100.00% - VG Pluss AS Oslo 100.00% 100.00% 100.00% European Media Ventures AS Oslo 100.00% 100.00% 100.00% Gratisavisen avis1 AS Oslo 100.00% 100.00% 100.00% Metronome AS Oslo 100.00% 100.00% 100.00% Osloavisen AS Oslo 100.00% 100.00% 100.00% Schibsted Finans AS Oslo 100.00% 100.00% 100.00% Schibsted Interactive Studio AS Oslo 100.00% 100.00% 100.00% Schibsted Multimedia AS Oslo 100.00% 100.00% 100.00% Schibsted Print Media AS Oslo 100.00% 100.00% 100.00% Schibsted Trykk AS Oslo 100.00% 100.00% 100.00% Schibsted TV/Film og Forlag AS * Oslo - 100.00% 100.00%

Business segment Sweden Location 2007 2006 2005

Aftonbladet Hierta AB ** Stockholm 100.00% 100.00% 100.00% Aftonbladet Allt Om AB Stockholm 100.00% 100.00% 100,00% Aftonbladet Gratistidningen AB (previous Aftonbladet Förlag AB) Stockholm 100.00% 100.00% - Aftonbladet Kolportage AB Stockholm 100.00% 100.00% 100.00% Aftonbladet Kvällstidningen AB Stockholm 100.00% 100.00% - Aftonbladet Mediehusbolaget AB (previous Tabloiden Förvaltnings AB) Stockholm 100.00% 100.00% 100.00% Aftonbladet Nya Medier AB Stockholm 100.00% 100.00% 100.00% Aftonbladet Produktion AB Stockholm 100.00% 100.00% - Aftonbladet Tillväxtmedier AB Stockholm 100.00% 100.00% - Aftonbladet Tilväkstteknik AB Stockholm 100.00% - - Aftonbladet Tilväkstteknik 2 AB Stockholm 100.00% - - Aftonbladet TV AB Stockholm 100.00% 100.00% - ASF Sverige AB Stockholm 94.21% 94.21% 94.21% Bilen Sverige SE AB Stockholm - - 80.30% Blocket AB Stockholm 94.21% 94.21% 68.58% Byt Bil Nordic AB Stockholm 100.00% 80.30% 80.30% Fastighetsdatabasen AB Stockholm - - 96.70% Hierta Affärsutveckling AB Stockholm 100.00% 100.00% 100.00% Hittapunktse AB Stockholm 99.70% 96.70% 96.70% Prisjakt.nu AB Stockholm 70.00% 70.00% - Svenska Skivklubben Delfin AB Skara 51.00% 51.00% 51.00% TA Teleadress Holding AB Stockholm 99.70% 99.70% 96.70% Teleadress Information AB Stockholm 99.70% 99.70% 96.70% Business segment Sweden Location 2007 2006 2005

Metronome Film & Television AB Stockholm 100.00% 65.00% 65.00% Blarke Sonne Levring A/S Copenhagen - 65.00% 65.00% Bullet Productions A/S Copenhagen - 65.00% 65.00% C. Wikander Produktion AB Stockholm 100.00% 65.00% 65.00% Cosmo Televisjon AS Oslo 100.00% 65.00% 33.15% Decimeter Film & TV AB Stockholm 100.00% 65.00% 65.00% Drivankaret AB Stockholm 50.00% 32.50% 32.50% Dropout AS Oslo 100.00% 65.00% 65.00% Endemol Entertainment Produktion AB Stockholm 100.00% 65.00% 65.00% European Film Group A/S Copenhagen - - 65.00% Filip Hammar Rättigheter AB Stockholm 100.00% - - Filmlance International AB Stockholm 100.00% 58.50% 39.00% Fredrik Wikingsson Rättigheter AB Stockholm 100.00% - - Friday TV AB Stockholm 100.00% - - Helikopter A/S Copenhagen - 65.00% 65.00% Helikopter Digital Media AB Göteborg 100.00% 65.00% 65.00% Mekano Film & Television AB (previous Mekano Enterprise AB) Stockholm 100.00% 65.00% 65.00% Meteor Films OÜ Tallinn 100.00% 65.00% 65.00% Meter Fakta AB Stockholm 100.00% 65.00% 65.00% Meter Film & Television AB Stockholm 100.00% 65.00% 65.00% Metrix Interactive AB (previous Mekano Film & Television AB) Stockholm 100.00% 65.00% 65.00% Metronome Aps Copenhagen - - 65.00% Metronome Film & Television Oy Helsingfors 100.00% 63.05% 63.05% Metronome Film A/S Copenhagen 100.00% 58.50% - Metronome Productions A/S Copenhagen 100.00% 65.00% 65.00% Metronome Spartacus AB Stockholm 100.00% 65.00% 65.00% Metronome Spartacus AS Oslo 100.00% 53.95% 53.95% Metronome Studios A/S (previous Studios A/S) Copenhagen 100.00% 65.00% 65.00% Moland Film Company A/S Copenhagen - 65.00% 65.00% Moland Film Company AS Oslo - 65.00% 65.00% Mutter Media AB Stockholm 100.00% 65.00% 65.00% Nordic Entertainment A/S Copenhagen - - 65.00% Otto Tuotanto Oy Helsingfors - 63.70% 65.00% Peter Emanuel Falck Produktion AB Stockholm 100.00% 65.00% 65.00% Post Selskabet A/S Copenhagen - 65.00% 65.00% Premierpaketet Lance AB Stockholm 100.00% 58.50% - Rettighetsselskapet Intrige AS Oslo 67.00% 36.40% 36.40% Rubicon Film AS (previous Nordic Entertainment AS) Oslo 100.00% 58.50% 65.00% Rubicon TV AS Oslo 100.00% 65.00% 65.00% Spartacus TV production KB Stockholm 67.00% 43.55% 43.55% Stockholm - Köpenhamn Produktion AB Stockholm 100.00% - - Studios AS Oslo 100.00% 65.00% 65.00% Studios Mekaniken AB Stockholm 100.00% 65.00% 65.00% TV Spartacus AB Stockholm 100.00% 65.00% 65.00% Tvålkoppen AB Stockholm 100.00% 43.55% 43.55% Sandrew Metronome AB Stockholm 100.00% 100.00% - Movie 24 AS (previous Sandakerveien 121 Fusjonspartner AS) Oslo 100.00% 100.00% 100.00% Sandrew Metronome Danmark A/S Copenhagen 100.00% 100.00% - Sandrew Metronome Distribusjon Finland OY Helsingfors 100.00% 100.00% - Sandrew Metronome Distribution Sverige AB Stockholm 100.00% 100.00% - Sandrew Metronome International AB Stockholm 100.00% 100.00% - Sandrew Metronome Norge AS Oslo 100.00% 100.00% - Sandrew Metronome Video Danmark A/S Copenhagen 100.00% 100.00% - Scanpix Scandinavia AB Stockholm 88.23% 88.23% 88.23% OÜ Scanpix Baltics Tartu 90.32% 90.32% 90.32% Scanpix Norge AS Oslo 44.20% 44.20% 44.20% SI Företagstjänster Holding AB Stockholm 100.00% 100.00% 100.00% SI Företagstjänster AB Stockholm 100.00% 100.00% 100.00% SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAG E 111

Business segment Sweden Location 2007 2006 2005

Svenska Dagbladet Holding AB Stockholm 99.41% 99.41% 99.41% E24 International AB (previous N24.se AB) Stockholm 99.65% 99.65% 99.65% E24 Näringsliv HB Stockholm 99.65% 99.65% - HB Svenska Dagbladets AB & Co Stockholm 99.41% 99.41% 99.41% Svenska Dagbladet Digitala Medier AB (previous Svenska Dagbladet Nya Medier AB) Stockholm 99.41% 99.41% 99.41% MinTur AB (previous Svensk Radiobokning AB) Stockholm 90.46% 99.41% 99.41% Svenska Dagbladet Annons AB Stockholm 99.41% 99.41% 99.41% Svenska Dagbladet Digitala Medier AB (previous Min Tur AB) Stockholm 99.41% - - Svenska Dagbladet Distribution AB Stockholm 99.41% 99.41% 99.41% Svenska Dagbladet Executive Club AB Stockholm 99.41% 99.41% 99.41% Svenska Dagbladet Venture AB Stockholm 99.41% 99.41% 99.41% Svenska Dagbladets AB Stockholm 99.41% 99.41% 99.41% Svenskan Svenska Dagbladet AB Stockholm 99.41% 99.41% 99.41% Tasteline Sweden AB Stockholm 93.84% 93.84% 93.84% Tesked AB Varberg 84.80% 84.80% 84.80% Mötesplatsen i Norden AB (previous Mera AB) Varberg 84.80% 84.80% 84.80% Tidningstryckarna Holding Sweden AB Stockholm 100.00% 100.00% 100.00% Fastighets AB Tidningsfabriken Stockholm 100.00% 100.00% 100.00% Tidningstryckarna Aftonbladet Svenska Dagbladet AB Stockholm 100.00% 100.00% 100.00% Jobb 24 HB Stockholm 99.71% 99.71% - Schibsted Sverige AB (previous Schibsted Multimedia AB) Stockholm 100.00% 100.00% 100.00% Schibsted Rörliga Bild AB Stockholm 99.82% - - TV.nu AB Stockholm 50.91% - - Webbtraffic Sverige AB Stockholm 100.00% - -

Business segment International Location 2007 2006 2005

20 Min Holding AS Oslo 100.00% 100.00% 100.00% 20 Min GP Ltd St. Helier - - 100.00% 20 Min Holding AG Zürich 100.00% 100.00% 100.00% 20 Min International B.V. Rotterdam 100.00% 100.00% 100.00% 20 Minutos España S.A. Madrid 80.00% 80.00% 80.00% Ganymed GmbH Cologn 100.00% 100.00% 100.00% Multiprensa Y M@s S.L: Madrid 80.00% 80.00% 80.00% AS Eesti Meedia Tartu 100.00% 92.50% 92.50% AS Kroonpress Tartu 99.71% 92.20% 92.20% AS Litero Valga 95.10% 87.96% 82.05% AS Postimees Tallinn 100.00% 92.50% 92.50% AS Pärnu Postimees Pärnu 100.00% 92.50% 92.50% AS Viru Press Rakvere 53.13% 49.14% 49.14% OÜ Meediasüsteemid Tartu 100.00% 92.50% 92.50% Soov Kirjastus OU Tallinn 100.00% 92.50% 61.67% AS Schibsted Baltics Tallinn 100.00% 100.00% 100.00% UAB 15 Minuciu Vilnius 65.99% 66.99% - LT (previous UAB Extra Zinios) Vilnius 65.98% 50.98% 50.98% UAB Zurnalu Leidybos Grupe (ZLG) Vilnius 66.67% 66.67% 66.67% UAB Plius Vilnius 51.00% - - Schibsted International Classified & Search AS (previous Memento SOL AS) Oslo 100.00% 100.00% 100.00% Anuntis Chile S.A. Santiago 76.23% 76.99% - Anuntis Peru S.A.C Lima 76.23% 76.99% - Anuntis Segundamano Argentina Holdings S.A. Buenos Aires 76.23% 77.00% - Anuntis Segundamano Argentina S.A. Buenos Aires 76.23% 77.00% - Anuntis Segundamano Espana SL Barcelona 76.23% 77.00% - Anuntis Segundamano Holdings SL Barcelona 76.23% 77.00% - Anuntis Segundamano Trademark (Mexico) BV Amsterdam 76.23% 77.00% - Anuntis Venezuela S.A. Caracas 76.23% 73.38% - ASM Clasificados de Mexico SA de CV Mexico 76.23% 77.00% - Business segment International Location 2007 2006 2005

Cerca e Trova SA Lugano 100.00% 100.00% - Compraventa S.L.* Madrid - 80.00% 80.00% Editora Balcão Ltda Rio de Janeiro 76.15% 77.00% - Editora Urbana Ltda Bogotá 68.61% 69.30% - Editoria Anuntis Segundamano Online do Brazil Ltda. Rio de Janeiro 76.23% 77.00% - Editoriale Secondamano S.R.L. Milano 100.00% 100.00% - Garantie System S.A. Paris 50.00% 100.00% - Hebdo Mag Brazil Holdings B.V. Amsterdam 76.23% 77.00% - Hebdo Mag Brazil Holdings Ltda. Rio de Janeiro 76.23% 77.00% - Inedit S.p.A* Milano 100.00% 100.00% - InfoJobs S.A. Barcelona 71.40% 72.04% - Inmobolsa Factory SL Barcelona 38.88% 39.27% - IT competence Center S.L Barcelona 76.23% 77.00% - Multimedia Communication - MMC SARL Paris - 50.00% - Primo Pentagono S.p.A* Milano - 100.00% - Que Facil Alicante S.A.* Alicante - 77.00% Recuperacion y Direction de Empress S.A.* Madrid - 77.00% - Schibsted Classified Media (Switzerland) S.A. Lugano 100.00% 100.00% - Schibsted Classified Media NV Amsterdam 76.23% 100.00% - Schibsted Classifieds France S.A. Paris - 100.00% - Schibsted France Holdings S.A. Paris - 100.00% - Schibsted Classified Media Italy SRL Milano 100.00% - - Servicios de Geomarketing Immobiliario S.L. Barcelona 76.23% 77.00% - Subito.it Srl Milano 100.00% 100.00% - Unimail S.A. Madrid 76.23% 77.00% - AS Kanal 2 Tallinn 100.00% 100.00% 100.00% Regional Independent Newspapers North-West Moskow 66.67% 66.67% - Schibsted AG Berlin 100.00% 100.00% 100.00% Schibsted Iberica SL Madrid 100.00% 100.00% 100.00% SFI Holding AS Oslo 88,60% 88.60% 88.60%

** Aftonbladet Hierta AB is owned by Schibsted and the Swedish LO (Swedish Labour Union). LO owns 50.1 % of the voting shares through preference shares with a fixed annual return (SEK 3.6 million). Schibsted owns 49.9 % of the voting shares and has the industrial and financial ownership responsibility for Aftonbladet’s development.

NOTE 28 SUPPLEMENTAL INFORMATION TO THE CASH FLOW STATEMENT

Interest and dividends included in the cash flow statement are as follows: 2007 2006 2005

In cash ﬂow from operating activities: Interest paid (318) (146) (67) Interest received 47 37 17 Dividends received 71 139 166

In cash ﬂow from ﬁnancing activities: Dividends paid (to majority) (334) (278) (220) Dividends paid (to minority interests) (88) (59) (27)

Schibsted’s cash flow statement shows net payments and receipts on the acquisition and sale of subsidiaries and interests in joint ventures.

SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 113

The liquidity effect of acquisitions is arrived at as follows: 2007 2006 2005

Cash in acquired companies 7 184 34 Acquisition cost other current assets 11 401 54 Acquisition cost non-current assets 216 6 330 463 Aggregate acquisition cost assets 234 6 915 551 Minority interests and liabilities assumed 96 (2 004) (150) Deferred payment previous years’ acquisitions - - 75 Gross purchase price 330 4 911 476 Cash in acquired companies (7) (184) (34) Acquisition of subsidiaries, net of cash acquired 323 4 727 442

The liquidity effect of sales is arrived at as follows: 2007 2006 2005

Cash in sold companies 11 2 60 Carrying amount other current assets 53 1 121 Carrying amount non-current assets 358 35 133 Aggregate carrying amount assets 422 38 314 Minority interests and liabilities transferred (131) (4) 16 Gain 73 21 384 Gross sales price 364 55 714 Cash in sold companies (11) (2) (60) Sale of subsidiaries, net of cash sold 353 53 654

NOTE 29 TRANSACTIONS WITH RELATED PARTIES

For remuneration to management, see note 8, Personnel expenses and share-based payment.

For loans to associated companies and joint ventures, see note 19, Other non-current assets.

Verdens Gang AS has printing contracts with Norwegian regional newspapers that are associated companies to the Group. Total expenditure under these agreements was NOK 152 million in 2007. annual report Schibsted ASA

–– Income statement – ASA page 116 –– Balance sheet – ASA page 117 –– Cash ﬂow statement – ASA page 118 –– Notes to the ﬁnancial statement – ASA page 119 –– Auditor’s report page 127 INCOME STATEMENT - SCHIBSTED ASA

(NOK million) NOTE 2007 2006

Operating revenues 2 20 4

Personnel expenses 3 (123) (90) Depreciation and amortisation 4 (2) (2) Other operating expenses 5 (91) (88)

Operating proﬁt (loss) (196) (176)

Financial income 6 905 1 869 Financial expenses 6 (44) (32)

Net ﬁnancial items 861 1 837

Proﬁt before taxes 665 1 661

Taxes 7 (162) (52)

Net income 503 1 609 SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 117

BALANCE SHEET AT 31 DECEMBER – SCHIBSTED ASA

(NOK million) NOTE 2007 2006

ASSETS Licences 4 1 1 Deferred tax asset 7 16 13 Intangible ﬁxed assets 17 14

Tangible ﬁxed assets 4 8 8

Investments in subsidiaries 8 1 872 1 472 Investments in associated companies 8 1 748 1 022 Investments in other shares 8 14 25 Financial ﬁxed assets 3 634 2 519

Fixed assets 3 659 2 541

Receivables 9 840 818 Cash and bank deposits 10 8 9 Current assets 848 827

Total assets 4 507 3 368

EQUITY AND LIABILITIES Share capital 69 69 Treasury shares (3) (2) Share premium reserve 76 76 Other paid-in capital 107 98 Paid-in capital 249 241

Other equity 2 033 2 176 Retained earnings 2 033 2 176

Equity 12 2 282 2 417

Pension liabilities 13 52 38 Provisions 52 38

Current liabilities 14 2 173 913

Total equity and liabilities 4 507 3 368

Oslo, 27 March 2008 Schibsted ASA’s Board of Directors

Ole Jacob Sunde Karl-Christian Agerup Monica Caneman Chairman of the Board Deputy Chairman of the Board

Alexandra Bech Gjørv Eva Lindqvist Christian Ringnes

Berit Simenstad Audun Solberg Kjell Aamot President and CEO CASH FLOW STATEMENT - SCHIBSTED ASA

(NOK Million) 2007 2006

CASH FLOW FROM OPERATING ACTIVITIES Profit before taxes 665 1 661 Taxes paid - (52) Depreciation and amortisation 2 2 Gain on sale of fixed assets (24) (1 020) Share-based payment 5 3 Group contributions included in financial income (815) (764) Change in short-term receivables 19 (30) Change in current liabilities 1 (66) Difference between pension cost and cash flow related to pension plans 14 3 Net cash flow from operating activities (133) (263)

CASH FLOW FROM INVESTING ACTIVITIES Payments on purchase of tangible ﬁxed assets (2) (2) Payments on purchase of equity investments (735) (497) Receipts on sale of shares 48 1 150 Net cash ﬂow from investing activities (689) 651

CASH FLOW FROM FINANCING ACTIVITIES Change in short-term interest-bearing debt 820 (233) Group contributions received (net) 587 410 Dividends paid (334) (278) Purchase / sale of treasury shares (252) (285) Net cash ﬂow from ﬁnancing activities 821 (386)

Net cash ﬂow for the year (1) 2

Cash and cash equivalents at 1 January 9 7 Cash and cash equivalents at 31 December 8 9 SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 119

NOTES TO THE FINANCIAL STATEMENTS SCHIBSTED ASA

All amounts in NOK million unless otherwise stated.

NOTE 1 ACCOUNTING POLICIES

The financial statements of Schibsted ASA have been prepared in accordance with the provisions of the Norwegian Accounting Act and generally accepted accounting principles in Norway.

Revenue recognition Operating revenues are recognised when the goods are delivered or the service rendered.

Classification Assets and liabilities related to the normal operating cycle are classified as current assets and current liabilities. Receivables and liabilities not related to the normal operating 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 Shares are measured at cost and are written down if the carrying amount exceeds the recoverable amount. The write-down is reversed if the basis for the write-down is no longer present.

Group contributions received are included in financial income provided that the group contribution received does not represent a repayment of capital invested. Group contributions that represent a repayment of capital invested are accounted for as a reduction in the cost of investments in subsidiaries. Net group contributions payable (gross group contributions less the associated tax effect) is included in the cost of investments in subsidiaries. Dividends from associated companies are included in financial income.

Tangible fixed assets and intangible assets Tangible fixed assets and intangible assets are measured at cost less accumulated depreciation and write-downs. Tangible fixed assets and intangible assets with limited useful lives are depreciated over the expected useful life. Tangible fixed assets and intangible assets are written down if the carrying amount exceed the recoverable amount. The recoverable amount is the higher of net sales value and the present value of future cash flows expected to be generated. Write-downs are reversed if the basis for the write-down is no longer present.

Leasing Leasing agreements are classified as financial or operational based on the actual content of the agreement. Agreements transferring substantially all the financial rights and obligations related to the leased object to Schibsted are classified as financial. Tangible fixed assets held under financial lease agreements is recognised in the balance sheet and depreciated over the estimated useful life of the asset. The present value of lease payments is included in long-term interest-bearing debt. The debt is reduced by the amount of lease payments less the effective interest rate. Other lease agreements are classified as operational and the annual leasing fee is charged to expense as a leasing expense.

Foreign currency Foreign currency monetary items are translated at the closing rate at the date of the balance sheet. Foreign currency gains and losses are reported in the income statement in the line items other financial income or financial expenses.

Trade receivables Trade receivables are measured at realisable value. Provisions are made for bad debts.

Treasury shares The cost of acquisition and proceeds from sale of treasury shares are offset against equity.

Pension cost Pension liabilities related to defined benefit plans are measured at the net present value of future pension benefits earned at the balance sheet date and calculated on the basis of assumptions for, among others, the discount rate, expected future wage growth and pension adjustments. Plan assets are measured at fair value. Net pension liabilities related to under-funded plans are recorded as provisions, while the net assets of over-funded plans are recorded in financial fixed assets. Net pension expense, which is gross pension expense less the expected return on plan assets adjusted for past service cost and the effects of changes in estimates, are included in personnel expenses. Changes in pension liabilities due to amendments in pension plans are included in net pension expense over the vesting period or immediately if the benefits are immediately vested. Changes in pension liabilities and plan assets, due to changes in and deviations from the calculation assumptions, are included in net pension expense over the average remaining working lives of participants for that part of the accumulated effect that exceeds 10% of the greater of plan assets or pension liabilities. In the case of pension plans that are defined as contribution plans for accounting purposes the premiums are charged to pension expenses for the period. Share-based payment The fair value of options granted to employees, measured at grant date, is charged to expense as personnel expenses over the vesting period. Related social security costs, calculated on the difference between the exercise price and share price at the balance sheet date, are charged over the vesting period.

Income taxes The tax charge is calculated from the profit (loss) before tax and comprises current taxes and the change in deferred taxes. Deferred tax assets and liabilities are calculated in accordance with the liability method without discounting and provided for all differences between the carrying amount in the balance sheet and the tax base of assets and liabilities, and for unused tax losses. Deferred tax assets are recognised only when it is expected that the benefit can be utilised through sufficient taxable profits from expected future earnings.

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.

Dividend The dividend for the financial year, as proposed by the Board of Directors, is recognised as liability at 31.12.

Cash flow statement The cash flow statement is prepared using 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.

NOTE 2 OPERATING REVENUES

Operating revenues consist of: 2007 2006

Sales revenues 20 4 Total 20 4

Sales revenues regards assistance Schibsted ASA provides to companies in the group and consists of consultant fees and other fees for participation in management development programs

NOTE 3 PERSONNEL EXPENSES AND MAN-YEARS

Personnel expenses consist of: 2007 2006

Salaries and wages 82 56 Social security costs 14 10 Net pension expense (note 13) 18 16 Other personnel expenses 4 5 Share-based payment 5 3 Total 123 90

The company has 110 full-time equivalents in 2007 included trainees. With regard to auditor’s fee, salaries and share-based payment, see Note 8 to the conolidated financial statements SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 121

NOTE 4 TANGIBLE FIXED ASSETS AND LICENCES

Equipment, furniture, vehicles Licences Cost as at 1 January 2007 42 1 Additions 2 - Cost as at 31 December 2007 44 1

Accumulated depreciation and amortisation 1 January 2007 (34) - Depreciation and amortisation for the year (2) - Accumulated depreciation and amortisation 31 December 2007 (36) -

Carrying amount 31 December 2007 8 1

Depreciation method Lineear Lineear Depreciation period 3–10 years 3–5 years

Depreciation charge includes depreciation of leasehold improvements of NOK 0.8 million.

Operating lease payments amounting to NOK 17 million, mainly related to leased office buildings with a remaining lease term of 12 years, are charged to expence in 2007.

NOTE 5 OTHER OPERATING EXPENSES

Other operating expenses consist of: 2007 2006

Rent, maintenance etc (Note 4) 18 14 Ofﬁce and administrative expenses 16 15 Professional fees 32 39 Travel, meetings and marketing 25 20 Total 91 88

NOTE 6 FINANCIAL ITEMS

Financial income consist of: 2007 2006

Interest income 1 - Group contributions received 815 764 Dividends from associated companies 63 81 Gain on sale of shares 25 1 020 Other ﬁnancial incomer 1 4 Total 905 1 869

Gain of sale of shares relates to the sale of Asker og Bærum Budstikke in 2007. In 2006 this regards to sale of TV2 AS.

Financial expenses consist of: 2007 2006

Interest expenses cash pool system (Note 10) 36 31 Other financial expenses 8 1 Total 44 32

Other financial expenses in 2007 relate to the Media Norge project, and the utilisation of the options regarding investments in Stavanger Aftenblad. NOTE 7 TAXES

Set out below is a specification of the difference between the profit before taxes and taxable income for the year: 2007 2006

Proﬁt before taxes 665 1 661 Permanent differences (87) (1 476) Change in temporary differences 13 - Taxable income 591 185

Tax rate 28% 28%

Tax payable and the year’s tax charge is calculated as follows 2007 2006

Calculated current taxes 165 52 Current taxes related to group contributions payable (156) (52) Taxes payable 9 -

Calculated current taxes 9 - Tax on change in temporary differences (3) - Tax related to group contributions payable 156 52 Tax charge 162 52

The net deferred tax asset consists of the following: 2007 2006

Temporary differences related to: Tangible ﬁxed assets (2) (3) Pension liabilities (52) (38) Other short-term liabilities (4) (4) Total basis for deferred tax asset (58) (45)

Tax rate 28% 28%

Net deferred tax liability (asset) (16) (13)

NOTE 8 INVESTMENTS IN SHARES

Ownership % Carrying 31.12.2007 Location amount Shares in subsidiaries 20 MIN Holding AS 100.00 Oslo 2 Aftenposten AS 100.00 Oslo 32 Basefarm AS 71.57 Oslo 96 Metronome AS 100.00 Oslo 180 Osloavisen AS 100.00 Oslo - Schibsted Eiendom AS 100.00 Oslo 116 Schibsted Finans AS 100.00 Oslo 290 Schibsted Forlag AS 100.00 Oslo 46 Schibsted Multimedia AS 100.00 Oslo 566 Schibsted Print Media AS 100.00 Oslo 495 Schibsted Sverige AB 100.00 Stockholm 4 SFI Holding AS 70.00 Oslo 20 Verdens Gang AS 100.00 Oslo 25 Total 1 872

Group contributions payable to subsidiaries, NOK 402 million (net) is capitalised as part of investments in subsidiaries. SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 123

Ownership % Carrying Shares in associated companies 31.12.2007 Location amount Equity Net income Adresseavisen ASA 35.65 Trondheim 128 387 103 Bergens Tidende AS 51.12 Bergen 551 475 139 Blocket AB 18.20 Stockholm 267 225 80 Fædrelandsvennen AS 25.00 Kristiansand 14 96 21 Fædrelandsvennen Trykkeri AS 25.00 Kristiansand - 25 3 Stavanger Aftenblad ASA 74.57 Stavanger 787 352 94 Svanedamsveien 10 AS 25.00 Kristiansand 1 64 3 Total 1 748

Other shares Harstad Tidende AS 16.54 Harstad 13 Scanpix Scandinavia AB 13.32 Stockholm 1 Stålfjæra ANS 1.00 Oslo - Total 14

In February 2007 Asker og Bærum Budstikke was sold with a gain of NOK 25 million.

Ownership (%) equals share of control, all with the expection of the share of control of Bergens Tidende on 10%, and for Stavanger Aftenblad and Adresseavisen on 5%.

In February 2007 Schibsted entered into an agreement with Montrica Global Opportunities Master Fund, giving them the right to sell up to 1,446,209 shares in Stavanger Aftenblad to Schibsted ASA for NOK 250 per share within 1 May 2008. Until 1 April, Schibsted has the opportunity to determine that the expiration date shall be 1 May 2009. In this case the strike price will be NOK 278 per share. If Media Norge is established prior to the date on which the option may be exercised, the right applies for a number of Media Norge Shares

NOTE 9 RECEIVABLES

Receivables consist of: 2007 2006

Short-term receivables from group companies 830 805 Other receivables 10 13 Total 840 818

NOTE 10 CASH AND BANK DEPOSITS

The total of cash and bank deposits of NOK 8 million consist of NOK 4 million which is bounded funds to secure trades from Nord Pool ASA

Schibsted ASA’s bank account is included in the Schibsted Group’s cash pool with Danske Bank. The cash pool system has been established to contribute to an optimal liquidity management for the Schibsted Group. As at 31.12.2007 Schibsted ASA had drawn NOK1,169 million on sub-accounts in the cash pool system, which is managed and controlled by Schibsted Finans AS. The overdraft is included in short-term liabilities in the balance sheet. With regard to financial market risk see Note 16 and 26 to the consolidated financial statements.

NOTE 11: OWNERSHIP

The 20 largest shareholders as at 31 December 2007: Number of sharess Interest in %

Blommenholm Industrier AS by Ole Jacob Sunde* 18 083 520 26.11 State Street Bank & Trust Co 8 864 231 12.80 Folketrygdfondet 3 750 050 5.42 JPMorgan Chase Bank 3 749 300 5.42 Schibsted ASA 3 235 336 4.68 Mellon Bank AS Agent for Clients 2 855 969 4.13 NWT Media AS 1 601 637 2.32 Skandinaviska Enskilda Banken 1 243 184 1.80 The 20 largest shareholders as at 31 December 2007: Number of sharess IInterest in %

Orkla ASA 1 040 000 1.51 Morgan Stanley & Co. 892 957 1.29 Svenska Handelsbanken 832 400 1.20 Nordea Bank Sweden AB 741 107 1.07 Danske Bank 730 334 1.06 State Street Bank A/C 701 259 1.02 Vital Forsikring ASA 683 513 0.99 JPMBLSA Nordea Lux Lending A/C 676 805 0.98 Guri Scotford’s Schibsted Trust 650 000 0.94 BNP Paribas Secs Service 514 489 0.75 SEB Private Bank S.A. 512 336 0.74 Citibank N.A. London A/C 506 536 0.73 Total 20 largest shareholders 51 864 963 74.96

Number of shares owned by Board of Directors and Group Management: Number of shares Karl-Christian Agerup 1 062 Berit Bjerg 827 Monica Birgitta Caneman - Alexandra Bech Gjørv - Cato A. Holmsen 3 200 Eva Lindqvist - Håkon Rene Mikkelsen 30 Hilde Kristin Mork 44 Jon A Rein - Christian Ringnes 10 850 Berit Simenstad - Catrine Smith - Audun Solberg 470 Ole Jacob Sunde* 100 000 Per Syversen - Gunnar Strömblad 3 845 Sverre Munck 8 566 Trond Berger 8 653 Jan Erik Knarbakk 8 743 Birger Magnus 13 360 Kjell Aamot 23 798 Total Board of Directors and Group Management 183 448

The total number of shares in Schibsted ASA as at 31.12.2007 was 69,250,000 and the number of shareholders 3,759. Foreign ownership was 51.26%. Schibsted ASA owned 3,235,336 treasury shares as at 31.12.2007. The shares are bought in accordance with de decision made on the general meeting of 10 May 2007, which gave approval for Schibsted ASA to by up to 6,925,000 treasury shares within a period of 12 months.

*) The Chairman of the Board in Schibsted ASA, Ole Jacob Sunde, do also represent Blommenholm Industrier AS with 26.11% SCHIBSTED ANNUAL REPORT 2007 –– ACCOUNTS PAGE 125

NOTE 12 EQUITY

SHARE OTHER The development in the company’s equity capital TREASURY PREMIUM PAID-IN OTHER in 2007 is as follows: SHARE CAPITAL SHARES RESERVE CAPITAL EQUITY TOTAL

Equity as at 31.12.06 69 (2) 76 98 2 176 2 417 Sale of treasury shares - - 4 17 21 Purchase of treasury shares - (1) - - (273) (274) Share-based payment - - - 5 - 5 Net income - - - - 503 503 Dividends accrued - - - - (390) (390) Equity as at 31.12.07 69 (3) 76 107 2 033 2 282

Schibsted ASA’s share capital consists of 69,250,000 shares of NOK 1 par value. The par value of treasury shares is presented in a separate line within paid-in capital with a negative amount.

NOTE 13 PENSION PLANS

The company is obligated to have an occupational pension scheme in accordance with the Act on Mandatory company pensions (“lov om obligatorisk tjenestepensjon”). The company’s pension scheme meets the requirements of that Act.

As at 31.12.2007 the company’s pension plan had 102 members. With regard to a description of the pension plans and the principal assumptions, see Note 8 and 23 to the consolidated financial statements.

The development in the net pension liability has been as follows : 2007 2006

As at 1 January 38 35 Net pension expense 18 15 Contributions / beneﬁts paid (4) (12) As at 31 December 52 38

Breakdown of net pension expense: 2007 2006

Current service cost 13 8 Past service cost - 4 Interest cost on pension liability 5 4 Expected return on plan assets (2) (3) Social security tax 2 2 Net pension expense – defined benefit plans 18 15 Pension expense – defined contribution plans 2 1 Net pension expense 20 16

Breakdown of net pension liabilities at 31 December: 2007 2006

Present value of funded obligations (51) (84) Plan assets 41 61 Present value of funded obligations, net (10) (23) Present value of unfunded obligations (54) (26) Unrecognised net actuarial losses 21 18 Social security tax (9) (7) Net pension liability (52) (38) NOTE 14 CURRENT LIABILITIES

Short-term liabilities consist of: 2007 2006

Trade creditors 6 7 Taxes payable (Note 7) 9 - Public duties payable 12 8 Dividends accrued 390 334 Short term liabilities group company (cash pool system) (Note 10) 1 169 350 Short-term liabilities to group companies 564 190 Other current liabilities 23 24 Total 2 173 913

NOTE 15 GUARANTEES AND PROVISION OF SECURITY

2007 2006

Guarantees for loans and drawing facilities on behalf of group companies 7 385 9 050 Other guarantees on behalf of group companies 167 143 Other guarantees 9 14 Total 7 561 9 207

With regard to guarantees for loans and drawing facilities of NOK 7 billion, NOK 4.8 billion had been drawn on the loan facility at the end of 2007. NOK 5.8 billion had been drawn at the end of 2006. Other guarantees on behalf of group companies relate to guarantees towards Danske Bank for up to NOK 150 million in respect of guarantees for tax withholdings and other guarantees, and towards Scibsted Sverige AB’s equity for up to NOK 17 million. There are also guarantees for loans to employees in the group of NOK 5 million, as well as unfunded pension liabilities of NOK 4 million. With regard to loans to senior managers, see note 8 to the consolidated financial statements.

NOTE 16 SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

On 26 February 2008 The Independent Media Ownership Council decided to allow the establishment of Media Norge. This means that Schibsted and the Media Norge partners will continue the process with establishing Media Norge in accordance with the Media Ownership Regulation and the conditions in the Media Ownership Council’s decision. The establishment of Media Norge implies that Schibsted ASA will be obligated to sell all shares in Adresseavisen ASA and that the Schibsted Group reduces the ownership in Harstad Tidende Gruppen from 78.94% (where Schibsted ASA’s share is 16.54%) to 40%.

The establishment of Media Norge implies that, through mergers, a new company Media Norge ASA will be established. The new company will be the owner of 100% of Aftenposten AS, Bergens Tidende AS, Fædrelandsvennen AS, Fædrelandsvennen Trykkeri AS and Stavanger Aftenblad ASA. At the establishment of Media Norge ASA, Schibsted will get an owner’s share of 76.67% (were Schibsted ASA’s share is 76.31%), based on the existing shareholding in the participating companies. However, the Schibsted Group will be obligated to reduce its ownership to 50.1% by selling shares. SCHIBSTED ANNUAL REPORT 2007 –– AUDITOR’S REPORT PAGE 127 Schibsted’s history 2008 –– The go-ahead for Media Norge 2007 –– Tinius Nagell-Erichsen died at 73 years of age 2006 –– Acquisition of selected parts of Trader Classiﬁed Media 2005 –– Schibsted Søk launches Sesam 2003 –– Acquisition of Blocket AB 2002 –– Launch of 20 Minutes in France 2001 –– Launch of 20 Minutes in Spain 2000 –– Scandinavian Online (SOL) listed on the stock exchange

1999 –– Launch of the free newspaper concept 20 Minutes –– FINN.no is established 1998 –– Acquisition of Svenska Dagbladet –– Investment in the Eesti Meedia Group 1996 –– Acquisition of Aftonbladet 1995 –– Acquisition of Metronome Film & Television –– First investments in online and new media activities –– First investments in Estonia - Kanal 2 1992 –– Listing on Oslo Børs –– First investments in TV and ﬁlms 1989 –– Converted from private company to limited company and group 1966 –– Takeover of VG

1885 –– Aftenposten starts to be published twice a day 1860 –– Launch of Christiania Adresseblad/Aftenposten 1839 –– Chr. Schibsteds Forlag is established Christian Michael Schibsted grew up in poverty and was orphaned at an early age. When he was nine years old, he was sent to Christiania’s workhouse (Opfos- tringsanstalt), which had bought a printing house that had the rights to publish “Christiania Intelligenssedler”. Here, Christian trained to be a typographer and printer and gained an insight into newspaper operations, something that laid the foundation for Schibsted. In 1839, he became a partner in a printing works. That was the start of what would later become a large media group. He is pictured together with his second wife, Thomasine Dorthea, and his son Amandus, who later became a legendary editor and head of Aftenposten. annual report 2007 report annual Concept and design: CREUNA Photo: Ole Walter Jacobsen, Scanpix Translation: Amesto Translations Print: Kampen Graﬁsk

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