BONNIER ANNUAL REVIEW 2017

BONNIER ANNUAL REVIEW 2017 1 This is Bonnier. We continuously reinvent media. Bonnier is the Nordic Contents region’s leading media company, with over 200 years of experience in changing­ media markets. We are based in Sweden, have operations in 15 countries and are wholly owned by the Bonnier family. Our businesses span the media spectrum, with a strong ­historic core in independent ­journalism and book publishing.

3 4 8 The Bonnier Annual Review 2017

From the CEO. Bonnier and Sustainability. Reporting & Publishing. Editor and Project Manager Bonnier’s journalism, storytelling and Planning for the long-term is one of Bonnier’s Our editors’ top picks of Bert Menninga ­knowledge-sharing continue to make our core values and a starting point for how stories from 2017. Photo Editor and Assistant Project Manager ­communities more open and interesting. we run our businesses. Elin Eriksson Director of Communications David Salsbäck

Production Spoon

Cover Tomas Monka Joanna Lavén

Contributing writers, photographers and illustrators Karl Gabor 14 21 22 Peter Jönsson Karin Strand Our Business Areas. Vision for Journalism. Financial Results. Translation A look at 2017 within our business areas What we stand for from board chair and A year with two faces for 2017. Mikaela Hincks Books, Broadcasting, Business to Business, owner Carl-Johan Bonnier. Printer Growth Media, Magazines and News. PÅ Media

Bonnier AB 113 90 Stockholm Sweden 6 BONNIER 2017 IN SHORT 8 REWARDING THE HARD WORK OF JOURNALISM 9 BONNIER SOCIAL IMPACT Phone: +46 8 736 40 00 [email protected] 10 THE IMPACT OF #METOO 11 C MORE’S GLBTQ CERTIFICATON 25 HISTORY OF A FAMILY COMPANY 26 BOARD AND MANAGEMENT www.bonnier.com

2 BONNIER ANNUAL REVIEW 2017 FROM THE CEO

businesses that provide a positive social ­network TV4 have grown both in terms of Tomas Franzén contribution. I’m proud to be the leader of reach and advertising revenues. companies that really make a difference. WE CAN SEE that where we are successful, IT HAS ALSO BEEN a tough year, without a there are a number of parameters in place: doubt (more on the financial results here). A better understanding of our customers’ “We’ve made important Which is true regardless of whether you needs; the ability with the right technology measure in terms of finances or the intensity and specific competences to introduce new of work. In a market undergoing radical content and services that meet user’s needs; contributions to society” changes, we need to be simultaneously inno- and having a culture and leadership that take vative and cost-effective if we want to ensure advantage of opportunities to collaborate During 2017, Bonnier has continued through journalism, our future as a powerful media group over within companies and even over company the long term. We need to be very careful boundaries. We have a lot left to do, but also ­storytelling and knowledge-sharing to make the communities with our finances and work more efficiently a number of good examples and successes to in the countries we work in more open, more interesting and in our traditional businesses in order to learn from. more entertaining. free up the resources needed to invest in new technology, new competences and new DURING FALL 2017, public debate as well services. This makes huge demands on those as workplace discussions were dominated ur times call for professional Magda Gad’s unique and award-winning of us working at Bonnier. by the revolutionary power of #metoo. For journalism, trustworthy voices, coverage from Raqqa and Mosul. those of us working in media, it’s had double shining a light on those in WE WILL CONTINUE to focus on our trans- significance as our organizations have been positions of power within THROUGH THE MORE than 100 million books formation of revenues from traditional to affected directly, while at the same time the public as well as private sold and initiatives encouraging children to digital sources, and on ensuring we are doing media has played a central role in publicizing spheres, and a diversity of read. the right things for the long-term success of #metoo. Operspectives and opinions. Our times also ­Bonnier. Does this mean that profitability in call for storytelling and entertainment that THROUGH BRINGING TOGETHER audiences of the short-term is unimportant? On the contra- I’M CONVINCED THAT there is a before and contribute to bringing millions for our own formats, productions ry, profitability is necessary in order to hold to an after #metoo. Workplace environment people and societies and stories, we create important common our strategic direction over the long haul. issues have seldom been on the agenda for together. During 2017, cultural reference points. Swedish corporate leaders, including for we’ve made important DURING 2017, a number of pieces have fallen Bonnier. This has changed, and the change contributions to society THROUGH OUR KNOWLEDGE-BASED services into place that make me very hopeful that is ­permanent. in all of these areas. – in schools such as with Nordic learn- during 2018 we can take more steps in ing portal Clio Online and in health with the right direction, including in terms of WITHIN BONNIER, we can rightfully be THROUGH INVESTIGATIVE Bonnier Health, medical journal Medicine finances. One important puzzle piece is that proud of the contribution to society that REPORTING and in-depth Today and fertility app Natural Cycles – all our news and business dailies in Sweden our companies­ and products provide. We Tomas Franzén, journalism, such as news of which contribute to important areas of our continue to prove that customers are willing make tough demands on others through CEO Bonnier AB. (Photo: Peter Jönsson) daily Dagens Nyheter’s ­communities. to pay for high-quality journalism in a digital our journalism.­ Naturally, we need to make uncovering a serious data format, with a total of 200,000 purely ­equally as tough demands on ourselves. breach at the Swedish Department of Trans- IN THIS ANNUAL REVIEW, you’ll find a varied digital subscribers. Another sign is that portation; and Expressen war correspondent selection of stories about our different both ­Swedish news daily Expressen and TV Tomas Franzén, CEO Bonnier AB

BONNIER ANNUAL REVIEW 2017 3 Sustainability Bonnier and Sustainability

Bonnier is responsible for the influence we have in the world.

4 BONNIER ANNUAL REVIEW 2017 Bonnier has a ­history of over 200 years as a ­family-owned media company. Planning for the long-term is a core value and a starting point for how we run our businesses.

IT’S THROUGH THIS thinking over the ­long-term that we want to have a positive effect on those communities we operate in and contribute to a sustainable society. We want our communities to be more open, more interesting, more entertaining and Expressen’s news desk worked more well-informed. hard during the terror attack in Stockholm in April 2017. AS A PART of society and as a company, ­Bonnier has a responsibility for the influ- FREEDOM OF SPEECH. Bonnier shall be retain the right competences is a deciding ENVIRONMENT AND EFFECTIVE USE OF ence, negative and positive, that we have in ­Sweden’s leading force for wide-ranging success factor. Creating environments where ­RESOURCES. Global and local challenges the world. Our world has distinct challenges freedom of expression and for free media. people can develop and successfully handle connected to the environment and the related to health, equality, climate change Freedom of speech and openness should the push for change the media industry is impact on the climate affect all companies. and much more, where the 17 Global Goals even define our internal corporate culture. experiencing are central challenges for our Even if Bonnier’s own environmental impact offer a way forward in terms of the three businesses. is limited and varies considerably given the dimensions of sustainable development: GOVERNANCE. As a family-owned media com- broad portfolio of businesses, we shall work economic, social and environmental. pany, we are aware that our businesses are DIVERSITY. Our companies shall offer fair to minimize our direct impact on the run in a sustainable fashion, with well-known employment conditions regardless of climate and where relevant, BONNIER HAS IDENTIFIED the following five ethical guidelines and a functioning warning sex or background, and our busi- in our value chain. areas that are especially central to our work system for when ethical guidelines are broken. nesses should contribute to an with sustainability and long-term social inclusive society where more More on benefit: OUR EMPLOYEES. To attract, develop and can take an active part. our website! ANNUALREVIEW2017. BONNIER ANNUAL REVIEW 2017 5 BONNIER.COM IN SHORT

Ambition: To Bonnier 2017 be a leading and Key figures high-­performing Our Business Idea: We create, select and digital ­media refine a world of knowledge and stories. house. 8 343 EMPLOYEES

We embrace technology. Bonnier has Revenue Streams' Goals Net Sales by Country leading positions in key media seg- ments, but only about 25 ­percent of Traditional Digital and new our revenues come from new sources. 7% By 2018, 35 percent of our revenues 150 8% should come from ­sources sustain- COMPANIES, able over the long term and by 2020 ­APPROXIMATELY 6% the target is 50 percent. With this in

54% 45% 30% 25% 35% 50% mind, our strategy for the next years 6% 58% focuses on ­investments in ­technology, 2017 2018 2020 2017 2018 2020 new services and getting the right 4% teams. We are developing a culture of strong cooperation across brands, 15 Books and other In the year 2020, ­companies and business areas. COUNTRIES sustainable we aim for 50% of 11% revenues coming from When we do this, combined with our digital and other journalistic and l­iterary credibility, 21% 20% 20% new sources. the long-term ­thinking of our owners

2017 2018 2020 SWEDEN FINLAND NORWAY and the talent within Bonnier, we have DENMARK U.S. GERMANY OTHER every ­opportunity to succeed. 625SEK M EBITA

Bonnier’s Freedom Passion Commitment of Power of the Core Values of Speech for media a Family Company Individual 25 740 SEK M NET SALES

6 BONNIER ANNUAL REVIEW 2017 CSR IN ACTION 2017 EDITORS’ TOP PICKS | FOR NEW READERS | #METOO C MORE AND GLBTQ CERTIFICATION | JOURNALISM PRIZES BONNIER SOCIAL IMPACT­ ACTIVITIES 2017

Journalism departure of several ministers and dominated public debate for a number of months. “Investigative journalism has seldom been as important as it is now. Mikael Holmström’s The Good Case for Publishing and Kristoffer Örstadius’ investigation of the actions of the Department of Transportation have shaken things up and resulted in big Bonnier editors and SUFFERING IN A BADLY LEAKING SOCIAL changes. It shows how important it is to set ­WELFARE SYSTEM aside resources for this type of reporting.” ­publishers talk about Mikael is single, poor and mentally ill. After Peter Wolodarski, Editor-in-Chief, having fought for eight years to get proper Dagens Nyheter some of their most care, he’s given up, pulled down his house ­important publications and escaped to the woods. KIT follows TERROR ATTACK IN STOCKHOLM STORIES SMUGGLED Mikael’s battle in real time, over fields and The terror attack in Stockholm in April 2017 OUT OF NORTH KOREA of the year and the meadows, to a watchtower on the shores was among the biggest national news of the In May 2017, Mu- of Lake Vänern. This is a story of a human year in Sweden. Just hours after the attack nich-based Piper ­impact they’ve had. being as well as a blunt portrayal of a badly and before the police made it public, Expressen Verlag published leaking social welfare system. was first out with a photo from ­security ­ Denunciation, a “Few reporters would take Mikael’s case camera footage of Rakhmat Akilov that book with stories since the issue of responsibility is messy made it ­possible to identify and arrest him. from North Korea. WHISTLEBLOWER AT THE NATIONAL and the story isn’t complete. Mikael’s fight “I stood in the small auditorium at “The author’s ­PROPERTY BOARD with the system isn’t unique, but that’s what ­Expressen’s offices in front of some 60 pseudonym is Bandi, A police raid on a government agency. A makes the reporting of particular interest ­advertisers when the notification flashed a literary writer who general director fired. Eight people suspected to the reader. Many recognize themselves on my mobile about the insane driving. It throughout the past of crime. One whistleblower who had in Mikael’s helplessness and are actively pinged and I finished my talk about DiTV decades has become enough. Per Hermanrud’s and Phil Poystis’ ­concerned with his disappearance. And the and went up to the news desk. There, a sharp critic of the North Korean regime, investigation of the National Property Board story of his fight isn’t done yet.” I understood immediately that something which he blames for mass starvation and on TV4’s Kalla fakta (cold facts) investigative Jenny Agö, Editor, KIT horrible had happened.” human suffering. In his work, Bandi records journalism show contains everything that a Thomas Mattsson, Editor-in-Chief, the suffering of common North Koreans who real scoop should have. ­Expressen have no one they can commiserate with and “An example of extraordinary journalistic who are imprisoned in their own state. The craft, which was nominated for Sweden’s top DATA LEAK AT DEPARTMENT OF stories were smuggled out of North Korea TV award, Kristallen. It’s more important ­TRANSPORTATION and have attracted a great deal of attention than ever now, in a time where dark forces Dagens Nyheter’s revelations of an in Germany, both by media and the public, want to undermine democracy and legisla- IT ­scandal at the Swedish as Bandi offers a unique insight into the tors want to restrict freedom of expression, Department of Transpor- private lives of North Koreans.” that media has owners and management tation was the biggest Felicitas von Lovenberg, ­Publisher, that protect investigative journalism.” ­political news of the Piper Verlag Viveka Hansson, Program Director for year. The report- See more News and Current Affairs, TV4 ing led to the activities at ANNUALREVIEW2017. 8 BONNIER ANNUAL REVIEW 2017 BONNIER.COM ACTIVITIES 2017

Inclusiveness For a New Generation of Readers

Empowering kids through reading and writing at Berättar­ ministeriet, funded in part by the Bonnier ­Family Foundation and ­Bonnierförlagen.

A SWEDEN WHERE everyone feels comfortable

with the written word and has a chance to KARL GABOR PHOTO: actively participate in social life. That’s the vision of Berättarministeriet – The Ministry sub­urban areas outside Stockholm, Göteborg secretary for the organization. “The written of Storytelling – a non-profit, politically and and Malmö and receives public funding as word is necessary to be able to take part in THE WORD IS FREE SUPPORTS religiously independent organ- well as from corporations and all the magical stories that help us under- ­BERÄTTARMINISTERIET ization that aims to empower foundations, including from stand what it is to be human and the key to The annual charity auction of Swedish book children to conquer the Swedish Swedish book publishing house gaining knowledge. publishing house Bonnierförlagen aims to strengthen and support free speech. For language and improve their grades Bonnier­förlagen and the Bonnier “Berättarministeriet’s mission is to 2017, comic book artists Nina Hemmingsson in school. With nearly 35,000 edu- Family Foundation. Berättar­ strengthen children’s chance to conquer the and Frida Malmgren donated original illustra- cation centre visits from kids, over ministeriet is a strong match and a written word, and in that way achieve a basic tions from the book Ordet är fritt (The word is free) as part of the auction, along with signed 2,600 from teachers and some 500 Dilsa Demirbag-Sten, vision that fits well with Bonnier’s foundation to be able to take an active role portraits of musical artist Veronica Maggio volunteers, Berättarministeriet has general secretary for strong support of reading and core in society. For a democracy to be viable, the and her autobiography Everything’s Good ­ Berättarministeriet. clearly had an impact. value of power of the individual. active participation of citizens is crucial.” for Now and signed copies of the photo book “At Berättarministeriet, Last Night in Sweden. All the proceeds from BERÄTTARMINISTERIET FOCUSES IN par- children discover how fun it is to read and the auction went to Berättarministeriet. ticular on underprivileged kids in several write,” says Dilsa Demirbag-Sten, general

BONNIER ANNUAL REVIEW 2017 9 ACTIVITIES 2017

Equality a thing in our campaign. The timing was perfect and we had a great response with hundreds of thousands of views,” she says.

FOR POZAR, the #metoo campaign was the The Impact of #metoo most important thing that happened in 2017. “It made a big difference, I can tell when I meet my girlfriends. Now, women dare to A look at the widespread Milano aimed to put the focus on how sexual both talk about and report sexual offenses,” harassment of women is a structural problem says Pozar. anti-sexual harassment in society, and the response was way beyond “In terms of journalism, the campaign was expectations. In just a few weeks, millions a big challenge. In part because there were campaign, with a personal­ of women described their own abuse and many workplaces within media that needed take from Vecko­revyn’s harassment using the hashtag #metoo. themselves to be investigated, in part due to the ethical problem of when to publish ­Irena Pozar. IN SWEDEN, thousands of women in industry names.” after industry joined forces and attested to sexist behavior, harassment and rape. THE QUESTION OF publishing names came up Actresses, women in the military, lawyers, almost immediately. The first Swedish testi- Irena Pozar, Editor-in-Chief for IN THE FALL of 2017, #metoo hit the world politicians, teachers, dancers, archeologists monies under the hashtag #metoo involved Veckorevyn­ (photo: Peter Jönsson) like a tidal wave, not least in Sweden. Media, and journalists were just some of the different a popular program host for TV4’s do-it-your- including many of Bonnier’s publications, professions with their own hashtags and self show Äntligen hemma (home at last) “On the whole, I think that question played an important role in keeping focus stories published in Swedish media. and a well-known columnist for Swedish of how to handle publishing names was on the structures that allowed for sexual news daily Aftonbladet. handled well by the media. If I under- ­harassment and assault of women in the AT BONNIER MAGAZINES & Brands women’s stand ­correctly, there haven’t been more workplace in Sweden. magazine Veckorevyn, the editorial team BONNIER BROADCASTING’S TV4 chose to ­complaints than usual to the Swedish Press had created earlier a hashtag – #anmälalla discontinue working with the TV host and Ombudsman [responsible for handling IN THE FINAL issue of 2017 of Journalisten of (report all), aimed at encouraging and removed the program from its line-up. ­complaints against the press],” says Pozar. the Swedish Union of Journalists, the paper supporting women in daring to report sexual Simultaneously, the channel ordered an “However, I think the media could have asked 18 journalists what the biggest media offenses to the police. independent investigation of the charges of been better in communicating with readers event of the year was. A total of 14 answered: “The campaign consisted of a series of abusive discrimination and sexual harass- when it came to why they published or #metoo. Of the four remaining, three of articles interviewing young women who ment during production of Äntligen hemma. didn’t publish each individual name of those them named #metoo as the year’s sensation told their stories of sex offenses they’d The investigation criticized TV4 for not accused. Unfortunately, there’s a credibil- and the fourth called #metoo the witch hunt been ­subjected to and their experiences in taking action earlier to ensure a safe working ity problem for media and many readers of the year – but adding “in the best way.” ­reporting them or deciding not to,” says environment during production of the wondered what the media’s reasoning was Irena Pozar, Editor-in-Chief. show. As a result, TV4 has adopted a “zero behind the different cases.” THE HASHTAG, started by U.S. actress Alyssa “We worked with the campaign during the tolerance” goal, which aims to combat and Milano on October 15 after producer Harvey entire fall and we were going to publish it prevent harassment, bullying and harm, and BOTH DAGENS NYHETER and Expressen Weinstein was accused of rape by several two weeks earlier but I got the flu. So when among other things includes a new whistle- ­together with other Swedish nationwide media well-known actresses, spread like wildfire. #metoo started, we didn’t need to change blower function. played leading roles during the #metoo

10 BONNIER ANNUAL REVIEW 2017 ACTIVITIES 2017 campaign. The news dailies regularly Equality ­published the different campaigns and even carried out their own investigative reporting, which among other things ­resulted in Dagens Nyheter’s disclo- Towards a More Inclusive Playing Field sure of misconduct by a cultural figure ­connected to the Swedish Academy and a senior manager at Schibstedt. C More is using its “I’m proud of these investigations, they were important,” says Pozar. power within sports

SHE HOPES AND believes that #metoo to make a ­difference will leave a permanent mark on society. “In the beginning, I was worried that for openly gay and #metoo would evaporate after a few ­transgender people. weeks, but that hasn’t been the case at all. I know that many men now see what a problem this is and can say ‘me too’ to call out a friend who is acting sexist,” THE SPORTS WORLD is still conservative in says Pozar. many respects, often criticized for being “I hope that all work places now on homogeneous and stereotypical, and not have an active gender equality policy terribly inviting for anyone breaking gender and not just an old piece of paper that’s norms. There is no openly gay player in any ­collecting dust somewhere. I also hope of the major sports league matches that C that everyone has seen that the problem More broadcasts. With this in mind, C More that’s surfaced is structural and it is wants to use its strong position, not least everywhere – in every occupation and within Swedish sports, to make a difference in all social classes.” for those outside traditional gender norms: The streaming service is the first media C More’s GLBTQ certification is ­company in Sweden to be GLBTQ certified. BONNIER CEO TOMAS FRANZÉN  both a matter of principle and ON #METOO good business. THE CERTIFICATION FOR C More is via RFSL, “I’m convinced that we as a media group, and all other employers, have much to the Swedish Federation for Lesbian, Gay, of knowledge or awareness. With this as a ment in particular,” says Kristina Ullgren learn from the debate that is underway. Bisexual, Transgender and Queer Rights, first step, C More plans to go further with from RFSL. “We know that the sports world If there is something that the #metoo which also provides education. The goal is more initiatives in 2018 to make Swedish is prone to exclude GLBTQ people and campaign has shown, it is that this isn’t both a matter of principle as well as good sports more inclusive. ­especially young people who are GLBTQ. happening on the margins, it’s a problem business sense: that all sports fans should With its powerful influence within the sports throughout our entire society. It’s our ­responsibility to make things better feel welcome watching C More’s sports “WE AT RFSL are happy that C More was the world, C More can through its certification based on this insight.” broadcasting, and not to alienate any first media company to choose to be GLBTQ push for broader representation and more ­possible viewers or employees through lack certified and that it was the sports depart- role models for young athletes.”

BONNIER ANNUAL REVIEW 2017 11 ACTIVITIES 2017

Journalism Rewarding the Hard Work of Journalism

A range of journalism prizes from Bonnier support the best in journalism in three ­different countries.

WHEN THE FIRST Swedish Grand Prize for Journalism was given out in 1966, it was the start of a long Bonnier tradition of ­honoring the best that journalism has to offer with independent journalism awards. From exposing corruption to giving a voice to the invisible, revealing surprising truths to telling amazing stories in a way no one else can. For over 50 years, the awards have rec- ognized the best in Swedish journalism, and the best in Finland as well since 2000 when the Finnish Grand Prize for Journalism was instituted. In Estonia, the Bonnier Award for top investigative journalism was established in 1996. And there are even journalism awards given out by individual publications, such as Swedish news daily Expressen’s Per Wendel Prize awarded annually. “Serving as a watchdog over power, what­ Prizewinner Magda Gad, war ever it looks like and however it’s expressed, ­correspondent for Expressen. is the duty of journalism and its most impor-

12 BONNIER ANNUAL REVIEW 2017 ACTIVITIES 2017 tant job,” says Jonas Bonnier, chairman Inclusiveness of the jury for the Swedish Grand Prize for Journalism. “And in times when those in power are actively working to stop this and will avoid being scrutinized, it feels Positive Impact Beyond Business like the Grand Prize for Journalism is more important than ever. To once a year get a chance to highlight, encourage and Bonnier Social Impact­ reward the high-quality journalism that’s undertaken by big and small news desks provides funding all over Sweden, has been a Bonnier ­tradition of the very best sort,” says for initiatives­ within Jonas Bonnier. ­Bonnier that serve NON-STOP DIALOGUE a social ­purpose. A finalist in 2016 and named Innovator of the Year in the Swedish Grand Prize for Journalism 2017, Expressen’s Magda Gad is one of the country’s most visible OFTEN, PROJECTS WITHIN Bonnier have journalists, with her extensive onsite a social responsibility aspect beyond the war coverage in Syria and the Middle business value for the company. Estab- East and an enormous following on lished in 2016, the Bonnier Social Impact social media. In giving her the prize, fund aims to fill the breach for projects the jury noted Gad’s talent for taking that fill an important purpose but other- her ­audience with her to the front, wise might never see the light of day. ­reinventing war coverage with a popular and ongoing dialogue. “THE IDEA WITH the fund is to support “I do my journalism collaborating initiatives that are both positive for our with the readers,” says Gad. “We have businesses as well as for society, but that two-way communication, where both might not meet strict market require- sides provide information, questions ments,” says Tomas Franzén, CEO for and discussion. It leads to much better Bonnier AB. and deeper journalism. Even engage- ment and influence and the possibility to FINANCED BY BONNIER AB and the Bonnier change things increases. It’s this that’s Family Foundation, the Bonnier Social the whole meaning of my work. The ­Impact fund has provided financial support readers spread the reporting by talking so far for three projects: Filmtegration, with their children and colleagues, and with C More; Clio Prep Course for New New immigrants learn Swedish with they write letters to everyone from our Immigrants, with Clio Online Sweden; and the help of classic Swedish movies prime minister to aid organizations.” Bonnier Hoops, with Bonnierförlagen. from Filmtegration.

BONNIER ANNUAL REVIEW 2017 13 BONNIER BUSINESS AREAS BOOKS | BROADCASTING | BUSINESS TO BUSINESS GROWTH MEDIA | MAGAZINES | NEWS BONNIER BUSINESS AREAS

The year 2017 was characterized by contrasts: on the one hand, NET SALES EBITA a strong and wide-ranging publishing list and enormous digital growth, on the other hand big challenges and weak profits for (MSEK) (MSEK) 7 000 400 our physical bookstores and some of our publishers. 6 000 5 000 300 4 000 200 3 000 2 000 Books 100 1 000

0 0 YET AT THE same time the year posed continued to go extremely well. There were 2017 2016 2015 2017 2016 2015 challenges, it was a pleasure to see that our 25 titles that sold more than 100,000 copies COMPANIES largest publishing houses, particularly in during the year. In addition, the acquisition COUNTRIES Germany and Sweden, have been highly of Münchner Verlagsgruppe (MVG), a fast- • Australia • Adlibris Group* • Finland • Akateeminen Kirjakauppa profitable. Profitability driven by a relevant paced, agile and trend-driven publisher, • France (Academic Bookstore) and modern publishing list combined with ­exceeded expectations and further strength- • Germany • Bonnier Books Finland skilled book launches. ened our business and our position in the • Poland • Bonnier Books Nova important and large German book market. • Norway • Bonnier Books Polska WE ARE ACTIVE in industries • Sweden • Bonnier Media Deutschland • U.K. • Bonnier Publishing undergoing rapid change, and BONNIERFÖRLAGEN CONTINUED TO retain its • U.S. • Bonnierförlagen within book publishing we leading position in the Swedish market. The • BookBeat are involved in and drive this publishing group had an excellent year, not *Adlibris Group was broken off into Bonnier’s newly formed • Cappelen Damm (50 percent) change. But our physical retail just due to the continued positive growth in E-Commerce Business Area at the beginning of 2018. • Pocket Shop Håkan Rudels, Business Area Head businesses, like many others, digital audiobooks, but physical book sales were hit hard by changing increased as well. Digital formats accounted consumer behavior that is affecting all retail. for 22 percent of total revenues. New initi- profitable business with a strategy to strengthen Finland and Cappelen Damm’s bookstore When I became business area head for atives were launched, for example digital-­ our position there. Bonnier Publishing in the Tanum in Norway wrestled with extremely Bonnier Books in late fall, we set a clear, only publisher Bonnier Bookery, with a list U.K. has grown rapidly in recent years, but difficult retail markets. more publishing-focused strategy. In the ­chosen to attract the digital book consumer. we experienced growth pains and profitability coming years, we will be a smaller but Our digital subscription service BookBeat problems. There is a clear action plan to deal THE ADLIBRIS GROUP continued to per- more profitable business area, with the aim grew strongly and now has 63,000 users. with this and to build a strong book publishing form well in book sales, and sales in other to strengthen our position as a modern, group for the future in the U.K. categories increased sharply. Unfortunately, ­powerful European book publishing group. IN OUR OTHER publishing businesses, Norwegian the year was also characterized by logistics Cappelen Damm had a stable year. Bonnier AS MENTIONED PREVIOUSLY, there are major problems in December, which had a severe I AM REALLY pleased with German book pub- Books Finland showed positive development challenges in physical retailing where our toll on results. In December, Bonnier AB’s lishing group Bonnier Media Deutschland’s in terms of sales but with continued weak bookstores Pocket Shop in Sweden, Finland, Board of Directors decided to make Adlibris successful year, with publishing activities that gross margins. In Poland, we have a small but the U.K. and Germany, Akateeminen in a separate business area.

BONNIER ANNUAL REVIEW 2017 15 BONNIER BUSINESS AREAS

Bonnier Broadcasting’s digital transformation accelerated NET SALES EBITA during 2017. (MSEK) (MSEK)

7 000 400 6 000 5 000 300 4 000 200 3 000 2 000 Broadcasting 100 1 000

0 0 SWEDISH TV NETWORK TV4 had its best year more big news during the year: TV4’s ad-free 2017 2016 2015 2017 2016 2015 ever financially, thanks to a systematic focus programming and SF Kids became part of the on high-quality Swedish content in all genres, SVOD service, and the first C More Original COUNTRIES COMPANIES a strong focus on technical development series premiered. In addition, sports channel and a talent for meeting the advertising Sportkanalen was launched and the over-the- • Finland • C More • Sweden • MTV market with the strongest offer. The long- top (OTT) package Standard Sport. The new • TV4 Group term work on total TV – where the way of sports selection is for a broad target audience watching makes no difference – made a real at a lower price level than the premium pack- breakthrough. Thanks to TV4 Play’s strong age. During the fall, a comprehensive growth growth, the total reach project to increase conversions for C More Broadcasting has been pursuing for ­several IN CONNECTION WITH the #metoo ­campaign, for TV4’s total TV offering was undertaken. The number of sign-ups years has meant a comprehensive program of TV4 was criticized for its failure to act increased over time. Stream- doubled during over the year. restructuring. Nyhetsbolaget was ­dissolved on poor working conditions during the ing service TV4 Play grew as a separate news production company ­production of one of its TV series. After by 18 percent, representing IN FINLAND, the advertising market con- and news and current affairs producers extensive work, the network established a over half of time spent on all tinued to be a challenge despite better and journalists moved back to the core powerful action plan – Mission Zero – with Casten Almqvist, ad-based video-on-demand macro-economic conditions. For MTV, business at TV4 and Bonnier ­Broadcasting. the ­purpose of combating and ­preventing Head Bonnier Broad- (AVOD) services in Sweden its high-quality Finnish content focus Work on integrating TV4 and C More’s violations and harassment, while also casting and CEO, TV4 according to independent and ­average viewer share during the year ­operations intensified further to increase simplifying identification of violations and analysts MMS, with over 3.8 was 25.7 percent (for ages 10-54) was the the pace of growth. Toward the end of the how they are handled. The zero tolerance million registered users. At the same time, market leader in all commercial audience year, TV4’s head of operations Mathias Berg policy includes, among other things, clearer the TV4 Group had an average viewer share groups. The AVOD service MTV Katsomo was ­appointed also head of operations for C guidelines, education for employees and of 33.8 percent (for ages 15–64) for linear had 2 ­million registered users by the end More. The linear TV channels TV4 ­Komedi managers, establishment of industry-wide TV, its highest ever. of the year. The SVOD service C More was and TV4 Fakta XL were discontinued in meetings, an internal ethics advisory group, launched in Finland during the year and order to focus more on TV4, Sjuan, TV4 clearer dialogue and requirements in relation FOR THE THIRD year in a row, C More was was well-received by the Finnish public. Play and C More. Some 90 positions were to external productions, and a whistleblower the fastest growing subscription-video-on-­ terminated as a result of restructuring and system that can be used also by the produc- demand (SVOD) service. And there was a lot THE DIGITAL TRANSFORMATION that ­Bonnier cost-savings measures. tion companies that TV4 uses.

16 BONNIER ANNUAL REVIEW 2017 BONNIER BUSINESS AREAS

The year 2017 is now history. If anything good has come out NET SALES EBITA of the year’s world-changing political events, then it is that the value of independent and professional journalism has come (MSEK) (MSEK) 1 400 160 into the spotlight stronger than ever. 1 200 140 120 1 000 100 800 80 600 60 Business to Business 400 40 200 20 0 0 THE OVERALL VIEW that digital news should We have many examples of growing advertising 2017 2016 2015 2017 2016 2015 be free has changed. This was certainly helpful sales, which is an achievement on its own. to all professional publishers including us, COUNTRIES COMPANIES where increasing revenues for paid content is ONE OF THE proofs of our entrepreneurial • Austria* • Lithuania • Bonnier Business Press one of our primary strategic goals. mind has been that challenging times in • Denmark • Norway • Børsen • Estonia • Poland • Clio Group advertising markets have pushed us to focus • Finland • Slovenia AT BONNIER’S BUSINESS to Business compa- even more on finding additional revenues in • Germany • Sweden nies, which consist of a range of business news other areas. Our conferences and training and niche publications as well as handbooks, revenues have been growing by double-digit *KnowledgeFox in Austria was sold in the beginning of 2018 events and other related business in Eastern percentage in all markets. Europe and the Nordic region, our editorial offices THE YEAR 2017 also saw us welcoming IT KOOLITUS – an IT training company OUR SCHOOLS E-LEARNING business Clio in have made many im- many new colleagues into the business area acquired in Estonia – will help our business Denmark started to re-focus its approach to provements together with through acquisitions. take a market-leading position in the niche of the market for 2018, after which subsidies commercial teams to focus IT professionals. will disappear. In Sweden, middle school on engagement of paying LEXNET IN LITHUANIA has opened up a new portals were launched in addition to the high Karmo Kaas-Lutsberg, readers and attracting line of business for B2B by providing decision IN THE HEALTHCARE and pharma niche, we school launch in September 2016. Business Area Head potential new subscribers. support solutions to legal professionals. launched a clinical decision support tool, Many of our businesses Gesinform/Deximed, in Germany in January. delivered growing subscription numbers after SPOTDATA IN POLAND is a step towards estab- Netdoktor, acquired in 2016 in Sweden, has years of decline. A combination of corporate lishing ourselves as a business information been expanding to Finland and Norway during sales, data analytics and relentless sales efforts provider beyond more traditional content the year. Norwegian online have put us back on a growth track. publishing. subscription and medical informa- IN JANUARY, a 49.9 percent share in our Danish tion service for OUR ADVERTISING TEAMS across the board ALSO IN POLAND, eRanking will help us business daily Børsen was sold to JP/Politikens physicians, NHI is have continued their strong efforts to make strengthen our offer in the lead-generation Hus, following objections from Danish compe- the market leader the best of the overall challenging situation. business. tition authorities to a full sale of the paper. with 40 percent.

BONNIER ANNUAL REVIEW 2017 17 BONNIER BUSINESS AREAS

Within Bonnier Growth Media, the value of the investment NET SALES EBITA portfolio developed strongly during the year. (MSEK) (MSEK)

2 800 400 2 400 2 000 200 1 600 0 1 200 800 Growth Media -200 400

0 -400 WITHIN BONNIER GROWTH MEDIA, the year: Evoke Gaming (a wholly owned com- 2017 2016 2015 2017 2016 2015 value of the investment portfolio devel- pany within Bonnier Growth Media), which oped strongly during the year. Investment was sold to Malta-based Mr Green; and COUNTRIES COMPANIES activities under the name Bonnier Ventures United Screens (a minority owned company • Denmark • Spoon included a portfolio of nine growth compa- within Bonnier Ventures), which was sold to • Finland • Bonnier Ventures Portfolio nies. The holdings in these companies were Germany’s RTL. Both of these divestitures • Malta* • SF Studios** valued at over SEK 550 million at the end of had a positive effect for Bonnier, where • Norway the year, corresponding to an internal rate of Evoke had had a negative impact on EBITA, • Sweden return (IRR) of 28 percent. and United Screens as of the time of sale had • U.K. • U.S. provided after three years a combined IRR of BONNIER VENTURES made 13 percent. *The sale of Malta-based Evoke Gaming was **SF Studios became part of a new business several further investments concluded in February 2018 area in 2018 during the year in conjunc- SF STUDIOS REPRESENTED the biggest share tion with external invest- of Bonnier Growth Media, with SEK 1.39 Ulrika Saxon, ment rounds in podcasting million in revenues and SEK -14 million as well as feature films. The movie Borg vs Business Area Head platform Acast, fertility app in EBITA. The Sweden-based film and McEnroe won a number of industry awards, Natural Cycles, cashback TV production­ company will be reported both in Sweden as well as internationally, service Refunder and film and TV produc- ­separately as of the beginning of 2018. This and a feature film of Swedish TV series tion company FLX. All of these companies is to avoid confusion with Bonnier Ventures, Solsidan, which was a joint production showed strong growth during 2017. Bonnier which will become a business area solely with FLX and distributed by SF Studios, Ventures also made a new investment in focused on ­investments, with IRR as the ­ended the year with high cinema attendance DaisyGrace, a content-driven omni-channel primary ­financial performance indicator. ­numbers. company; and became financially involved with the U.S.-based Betaworks and the GROWTH AND DEVELOPMENT for SF Studios ­Nordic fintech player NFT Ventures. has been for the greatest part positive in Podcast platform Acast reaches 18 million most areas, where productions grew signifi- unique individuals across its 45 million monthly TWO EXITS WERE carried out at the end of the cantly, both via a number of TV productions listenings.

18 BONNIER ANNUAL REVIEW 2017 BONNIER BUSINESS AREAS

Reading habits change and advertising money gets spent else- NET SALES EBITA where – there’s nothing new about this for magazines. But in 2017 we saw the rate of change accelerate. And it posed (MSEK) (MSEK) 4 000 200 ­challenges at an even faster pace for our existing businesses. 3 500 3 000 150 2 500 100 2 000 1 500 Magazines 50 1 000

0 0 AT THE SAME TIME, our new growth areas WE ALSO TESTED new products and formats, 2017 2016 2015 2017* 2016 2015

showed great potential, and the plan is to such as a focus on a higher price and more *EBITA was negatively affected by restructuring increase our speed forward to match the exclusive special issues (bookazines), where costs of SEK 55 million for Bonnier Corporation COUNTRIES big shift. we managed to create new revenue in an and Bonnier Magazines & Brands. • Denmark otherwise pressed market for single-issue • Estonia COMPANIES THE RAPID CHANGE is most apparent in newsstand sales. • Finland • Bonnier Corporation the U.S. market, where print revenue for • Norway • Bonnier Publications • Sweden magazines dropped by almost 20 percent in IT IS ALSO a very positive sign that more • Bonnier Magazines & Brands 2017. While Google and complex concepts, such as native advertis- • U.K. • U.S. Facebook are growing, ing, have gained traction: We really know everyone else has to our target groups and can handle everything struggle, both in print and from idea and design to production and de- digital. As a result, we saw livery. Other positive areas are the increase 2017, over 30,000 nominations were made THE FIRST MORE extensive trials of consolidation during the in agency activity at Benjamin Creative in in 12 categories. consumer­-paid digital products showed year with several major Denmark and the growth of services such as the way to the future. The Nordic all-you- Lars Dahmén, acquisitions and mergers. travel and education. IN SWEDEN, we strengthened the influencer can-read magazine app WYPE has evolved Business Area Head business and with the acquisition of the positively during the year, and several new EVEN IN THE Nordic IN THE U.S., we signed a long-term coopera- Tailsweep network, we are now clearly the digital services have been developed. countries, the rate of change is increasing, tion agreement with Li & Fung, world leader market leader. In the fall, we also witnessed but both of our companies there, Bonnier in manufacturing different types of goods, the birth of a new event in the fashion area: COSTUME WAS THE first fashion magazine in Publications with headquarters in Copenhagen and an important partner in the plan to grow Sweden Fashion & Beauty Day, a joint ven- Norway with a model on the cover wearing and Bonnier Magazines & Brands with head- our strong brands through licensing. ture from all four fashion and beauty brands. a hijab, with actress Iman Meskini from the quarters in Stockholm, have strong reader Norwegian television series Skam. The cover revenues and have been able to keep up well: IN THE FOOD SEGMENT, Saveur held its eight FITNESS TITLE Active Training was re-launched gained a lot of media attention and had a 2017 saw net sales of SEK 2.23 billion as annual Blog Awards in Charleston, South for the entire Nordic market. Going from an global impact as a consequence. budgeted and was at about the same level Carolina, honoring outstanding food and entirely male audience, it is now a unisex as 2016. travel content from around the world. In ­magazine, and circulation is up 10 percent.

BONNIER ANNUAL REVIEW 2017 19 BONNIER BUSINESS AREAS

The year 2017 was marked by continued pressure on our entire NET SALES EBITA business; an advertising market undergoing powerful changes, development of our digital subscription offering and a print (MSEK) (MSEK) 7 000 400 market with investments in both our products and structural 6 000 business within printing and distribution. 5 000 300 4 000 200 3 000 2 000 100 News 1 000 0 0 2017 2016 2015 2017 2016 2015 THE INTEGRATION WITH business-to-business PRINTING COMPANY BOLD continued to take group Bonnier Business Media (BBM) market share and has been able to lower COUNTRIES CORPORATIONS and Southern Swedish newspaper group production costs for our newspapers and • Sweden • Bonnier Business Media HD-Sydsvenskan as well as the acquisi- successfully streamline the printing compa- • Dagens Industri tion of real-estate news and event business nies. During the year, the commercial and • Dagens Nyheter ­Fastighetsnytt strengthened opportunities administrative functions were combined into • Expressen for future development of our operations. a common company. • HD-Sydsvenskan

BONNIER NEWS BRAND STUDIO continued WITH AN EBITA of SEK 303 million, the to develop not just as a leading player in ­business area had a strong finish to 2017. development and analysis resulted in traffic ­million. The business was fully integrated ­Sweden, but even inter­nationally. growth of 28 percent. Digital ad revenue with the rest of Bonnier News during 2017. SWEDISH BUSINESS DAILY Dagens industri growth was 21 percent and total ad revenues The news dailies have refined their digital WE WILL SOON reach the (Di) and Bonnier Business Media (BBM) had grew by 6 percent. TV viewing increased by ­subscription offer and received strong 200,000 mark for digital profits of SEK 144 million. Di launched DiTV 82 percent and revenues grew by 69 percent. growth in digital subscribers, which at the subscribers in our combined in collaboration with Expressen, which had a Expressen’s profits were SEK 37 million. end of the year was around 20,000. news dailies and had positive positive reception from the market. Dagens growth as well in the total industri’s digital subscriptions grew to nearly SWEDISH MORNING PAPER Dagens Nyheter’s With Bonnier as Anders Eriksson, number of subscribers for 30,000 by the end of the year. Collaboration had profits of SEK 116 million. Digital a new owner, Business Area Head our combined papers. with BBM continued to deepen. Integration subscriber growth continued and at the end Fastighetsnytt had with Fastighetsnytt continued and BBM has of the year stood at 120,000 subscriptions. a clear boost in per- OUR EXTRA EFFORTS in video resulted in the come a long way in its digital transformation. Dagens Nyheter also made significant formance. Its flag- launch of DiTV as strong growth in traffic for investments in its news team to further ship event Business Arena had a record number of participants, part- Swedish afternoon paper Expressen. New DURING 2017, Expressen had strong growth strengthen its product offer and to prepare ners and financial results. Close cooperation with collaborations with CNN and the New York both in traffic and ad revenues while the for the upcoming election in 2018. Dagens industri and Di TV among others helped Times have strengthened our offering, and print circulation decreased notably. A increase the visibility of real estate industry we are investing in our news staff. close cooperation among the editorial side, HD-SYDSVENSKAN HAD profits of SEK 52 issues more than ever. (Photo Elias Ljungberg)

20 BONNIER ANNUAL REVIEW 2017 Letter from the chairman Vision for Journalism

Bonnier protects freedom BONNIER’S BUSINESSES HAVE always been driven by the market. Independence, of speech, freedom of press high quality and longevity are predi­cated and the free flow of infor- on ­commercial success and economic viability. mation. We stand for jour- THE EDITORIAL CONTENT must also be nalistic diversity and create ­independent from us, the owners. In our opportunities for people to ­media, editorial executives own their ­journalism and editorial decisions. ­Editorial be heard. Readers, viewers executives and managers are free to develop and listeners­ are the clients their media from their perspective of the traditions and missions of each respective of our media. media channel. We ­respect our businesses’ individual identities and ­guarantee their freedom and independence.

THROUGH JOURNALISM, STORYTELLING and BONNIER HAS A liberal tradition. But it’s knowledge-sharing, we want to make the ­liberal with a small “l” without ties to a societies in the countries we work in more ­political party. This is characterized by a open, more interesting, more well-informed ­belief in the freedom of the individual, in and more entertaining. free speech that’s broadly and freely ­practiced, and in an open society. OUR INFORMING PUBLIC opinion must be free of ties to political parties, financial OUR MEDIA STAND in safeguard of power spheres and other organized social ­democracy, equality and fundamental interests, and the news we provide must ­human rights and freedom. be independent. A diversity of voices and perspectives should be heard in our ­media. Stockholm, January 2017 We believe in professional ­journalism with Carl-Johan Bonnier, Chairman of the Board, the legal responsibility that entails; this is Carl-Johan Bonnier Bonnier AB. (Photo: Peter Jönsson) our ­cornerstone. Chairman of the Board, Bonnier AB

BONNIER ANNUAL REVIEW 2017 21 Financial Results 2017 Bonnier 2017: Strong Underlying Development – Weak Year-End Financial Results

Bonnier AB’s operating profit sales lagged and write-offs affected profits. media, TV4 and Expressen, both increased the growth in digital subscribers for News, our (EBITA) for 2017 was SEK 625 After operational measures and write-offs, ­advertising revenues and reach. The TV book publishers’ digital sales are nearing SEK ­Bonnier Publishing has a good chance of network TV4 had a record year with a sharp 500 million and our biggest publishing groups, million, compared to SEK 731 ­sharply improving its profitability for 2018. increase in digital advertising revenues, while Bonnier Media Deutschland in Germany and million the previous year. The Our Finnish TV operations, MTV, continued linear advertising revenues also continued Bonnierförlagen in Sweden had strong years, group’s revenues were SEK 25.7 to have big challenges in a weak advertising to grow. Growth for streaming service TV4 yet again. Digital audiobook service BookBeat market with tough pricing competition. Play contributed to an increase in total reach. has some 70,000 users. Our Nordic online billion (25.5 billion). News daily Expressen increased market share retailer the Adlibris Group continued to grow “We see many breakthroughs in reach, page views and video, and digital and has ambitious growth plans for the future, ­advertising revenues grew, more than compen- driven by expansion into new product catego- BONNIER AB’S CEO TOMAS FRANZÉN SAYS: in our underlying transforma- sating for decreases in print advertising. ries, which informed our decision to put it into For Bonnier, 2017 has been a year of two faces. tion, with strong digital growth its own business area starting in 2018. Our On the one side, the year-end results were for our products and services SECONDLY, THAT WE’VE succeeded in build- Swedish paid streaming service C More has affected by a number of turnaround cases that ing further on our digital subscription services grown substantially during 2017, doubling the continue to run at a loss. In addition, we have ­within journalism, storytelling at Swedish newspapers Dagens Nyheter, number of its subscribers and for the third year comprehensive goodwill write-offs, primarily and entertainment.” Dagens industri and HD-Sydsvenskan. After in a row, had the greatest growth in the Swed- the result of investments in the U.S. in 2006- a year of fast customer growth, at the end of ish subscription video-on-demand (SVOD) 2008. On the other side, we see many break- AT THE SAME time that the year-end results 2017 the entire business area News had nearly market. throughs in our underlying transformation, are weak, we’re taking big steps forward in 200,000 purely digital subscribers. This was with strong digital growth for our products and our transformation with a focus on increased a significant contribution to News’ year-end C MORE STILL had significant losses, but services within journalism, storytelling and digital user revenues. Which is reason to be results, and important testimony to the willing- continued customer growth and distribution entertainment. optimistic. This, in conjunction with a number ness of our customers to pay for high-quality of the newly started Sportkanalen channel to of acquisitions and divestments, means we’re journalism, now and in the future. 1.5 million Swedish households is expected to THERE WERE PRIMARILY two business areas well-equipped to improve profitability during contribute to further improvements to C More’s that performed weaker than expected. Our 2018. In particular, I would like to highlight a THIRDLY, IN A number of areas we’re moving financial results for 2018. U.K.-based book publishing house ­Bonnier few milestones from the year: forward in our work to organically increase Publishing has had several years of great digital revenue streams and reduce our depend- WE HAVE MADE a number of interesting ­expansion and acquisition, but during 2017 FIRSTLY, OUR TWO Swedish maximum-reach ency on traditional revenues. In addition to strategic acquisitions during 2017. In particu-

22 BONNIER ANNUAL REVIEW 2017 lar, I would like to highlight our acquisition of continued to perform strongly, while physical revenues, and even advertising sales for linear during 2017 was the continued rollout of digital Fastighetsnytt and the German book publishing retail had a challenging year. On the publishing TV increased. The record results are a conse- learning portal Clio Online on the Swedish company Münchner Verlagsgruppe (MVG). side, the two biggest publishing groups, Bonnier quence of recent years’ investments in Swedish market. During 2017, a complete product port- Fastighetsnytt is a unique successful and Media Deutschland in Germany and Swedish high-quality content in all genres. Despite a folio of subject portals geared toward Swedish ­profitable Swedish real estate industry news Bonnierförlagen, had strong publication lists slowdown in linear TV viewership, the total middle schools was launched, an addition to and event company. And MVG is a data-driven together with growth in digital as well as physical reach for TV4 increased thanks to TV4 Play’s the existing products for secondary schools. and fast-moving book publishing group, also book sales – and continued good profitability. strong growth, a rise that was well-received by Deximed, a digital clinical decision support with an unusually strong profit margin. Along The U.K.-based Bonnier Publishing wrestled advertisers. tool for general practitioner physicians based with these companies performing extremely with profitability problems as the result of rapid on the Swedish Medibas and Norwegian NEL well, I’m also convinced that we will benefit growth, which had a strong negative effect on PAY SERVICE C MORE increased both in models, was launched in Germany. In January from their skills and experience in our continued the financial results. streaming (SVOD) and digital TV revenues, 2017, 49.9 percent of ownership in the Danish transformation. and it was the fastest growing SVOD service business daily Børsen was sold to JP/Politikens WITHINPHYSICALRETAIL, the substantial in Sweden for the third year in a row. During Hus. At the beginning of 2018, Bjarne Corydon, AT THE END of the year, we made deals to increase in e-commerce sales hit bookstores the year, C More released its first original former Danish Finance Minister, took over the sell Evoke Gaming, the Malta-based gaming hard, where Pocket Shop, Academic Bookstore drama series and also launched a completely helm as editor-in-chief and CEO for Børsen. company, as well our remaining shares in in Finland and Tanum in Norway altogether new sports channel, Sportkanalen, and a new multi-channel network United Screens, both had a negative effect on the financial results. OTT sports package. The financial results were MAGAZINES INCLUDES THE Swedish ­Bonnier of which were concluded at the beginning of somewhat improved compared to the previous Magazines & Brands (formerly Bonnier 2018. These acquisitions and divestments will THEADLIBRISGROUP continued to grow, year, but the company continues to experience Tidskrifter), the Copenhagen–based ­Bonnier together contribute positively to our financial however the end of 2017 was marked by logistics significant losses. Publications and the U.S.-based Bonnier results for 2018. problems that affected profits. The EBITA for ­Corporation. The EBITA for the business Books was SEK 105 million (427 million). FINLAND’S MTV CONTINUED to have area was SEK 167 million (267 million). The “Our steps forward in 2017 challenges, with a very tough macro-economic two Nordic publishers had a strong year and give us every opportunity FORBROADCASTING,EBITA amounted to market, where advertising investments con- contributed positive results in line with ex- SEK 423 million (373 million). The businesses tinue to fall and consequentially profits. The pectations. The U.S. market has been under- to improve our profitability continued their digital transformation at a rapid investments of MTV in Finnish high-quality going very substantial change, and Bonnier in 2018.” pace. As part of a continued reorganization, content continued to result in viewer successes, Corporation couldn’t repeat its successes from news production unit Nyhetsbolaget’s employees and now 2 million registered users for MTV’s 2016. In the beginning of 2018, a significant BASED ON OUR strategic plans for 2015- moved back to TV4/Bonnier Broadcasting ad-financed streaming service. During the year, ­restructuring as instituted at Bonnier Cor- 2020, we will continue to develop Bonnier and TV4 and C More continued to work ever MTV also launched C More as a pay SVOD poration, which included as well some 120 from a marked long-term perspective, with more closely together. The reorganization also service in Finland. positions made redundant. Despite growth for an ­ambition to build a group that is strong resulted in some 90 positions being made digital and adjacent services, the traditional and well-positioned for the future. Our steps redundant. BUSINESS TO BUSINESS had an EBITA of core business­ of print magazines continues to forward in 2017 give us every opportunity to SEK 131 million (164 million). The business dominate. One-time costs for the restructuring improve our profitability in 2018. SWEDISHTVNETWORK TV4 had a record area, which comprises B2B media and digital at Bonnier Corporation and Bonnier M­ agazines year, both in revenues and reach. Successes B2B services, increased revenues slightly & Brands’ move to the Bonnier Building in OUR BUSINESS AREAS with streaming service TV4 Play, which had during 2017. The decrease in profits is due to Stockholm affected the financial results. For Books, 2017 was a year of contrasts, where 3.8 million registered users, resulted in a investments in new products and launches above all the German and Swedish publishers significant increase in digital advertising in new markets. The biggest single initiative NEWS HAD A strong year with EBITA of SEK

BONNIER ANNUAL REVIEW 2017 23 303 million (294 million), which for Swedish in DaisyGrace, a content-driven omni-channel NET SALES BY BUSINESS AREA [SEK M] news daily Dagens Nyheter, business daily company, as well as engaged financially with 2017 2016 ­Dagens industri and Southern Swedish news- the U.S.-based startup platform Betaworks Books 8,098 7,690 paper group HD-Sydsvenskan was marked and the Nordic fintech player NFT Ventures. Broadcasting 7,497 7,397 Business to Business 1,130 1,111* by successful digital subscription initiatives. Two exits were concluded shortly after the end Growth Media 1,806 1,806 ­Swedish news daily Expressen continued of the year, in the form of the wholly owned Magazines 3,441 3,782 to show strong growth in digital ad sales, Evoke Gaming, which was sold to Malta-based News 4,890 4,679* ­following initiatives to increase reach and Mr Green, as well as all shares in the partially Other -1,121 -973* ­consequent strong rise in traffic. owned multi-channel network United Screens, Bonnier AB total 25,740 25,492 which was sold to the German RTL. FOR HD-SYDSVENSKAN, which was ­integrated OPERATING PROFIT (EBITA) BY BUSINESS AREA [SEK M] 2017 2016 fully into the rest of the business area, the year FILMANDTVproduction and distribution Books 05 427 saw considerable financial improvements. company SF Studios, the business area’s largest Broadcasting 423 373 The group had its best year financially since company, improved its profits and had strong Business to Business 131 164* ­Helsingborgs Dagblad and Sydsvenskan growth in its production business, both in Growth Media -106 -205 merged. In conjunction with the integration, terms of number of TV productions as well as Magazines 167 267 News 303 294* business area head Anders Eriksson took in the feature film segment. The movie Borg Other and eliminations 397 -589 over as CEO for HD-Sydsvenskan. vs McEnroe won a number of industry awards, Bonnier AB total 625 731 both in Sweden and internationally. Solsidan, IN JANUARY, FASTIGHETSNYTT was a co-production of FLX with distribution by SF EARNINGS [SEK M] ­acquired. The company, Sweden’s leading Studios, ended the year with very strong ticket 2017 2016 ­media and event business within real estate, sales. Net sales 25,740 25,492 had a very strong first year as a part of Bonnier. EBITA 625 731 EBIT -1,423 630** THEEBITAFOR the business area was SEK Net financial items -212 -239 THE VALUE OF Growth Media’s investment -106 million (-205 million). From Jan. 1, 2018 Earnings before tax -1,635 391** portfolio increased considerably during the SF Studios will be reported as its own business Earning after tax -2,239 276** year. The investment business, which goes by area, which means the Bonnier Ventures will be the name Bonnier Ventures, comprised a port- a business area purely with an investment focus folio of nine growth companies, and the hold- and IRR as primary performance indicator. *The comparative figures have been adjusted for a transfer of business from segment Business to ings in these companies were valued at SEK Business to News. 550 million at the end of 2017, which reflects an WRITE-OFFS: During 2017, Bonnier had **The comparative figures have been adjusted due to a reevaluation of the group’s accounting of internal rate of return (IRR) of 28 percent. goodwill write-offs of SEK 1.6 billion, of which intangible assets and inventory relating to development costs and publishing rights and the majority (SEK 1.3 billion) are related to the correction of errors. BONNIER VENTURES MADE several additional acquisitions of the magazine business in the investments during the year in connection U.S. during 2006-2008. The write-offs do not with new investment rounds in companies affect liquidity. including Acast, Natural Cycles, Refunder and FLX. Both Natural Cycles and Acast experi- OTHERCOMPRISES COMMON group activities enced very substantial increases in their value. and functions. This had an effect of SEK -397 Bonnier Ventures also made a new investment million (-589 million) on EBITA in 2017.

24 BONNIER ANNUAL REVIEW 2017 A look at Bonnier’s past in five epics History of a Family Company

1804–1890 1890-1930 The Emigrants: The Entrepreneurs: It all starts in Denmark when Gerhard Bonnier leaves Dresden to open a book- More than just book publishers, Albert Bonnier and son Karl Otto Bonnier stall in Copenhagen in 1804. Continues in Sweden, where son Albert Bonnier ­become established as major forces in Swedish culture with their stable of opens his own book publishing company in 1837. And grows as books become important writers. August Strindberg. Selma Lagerlöf. Ellen Key. They’re hugely popular in Sweden. patrons of the arts. People of influence.

2000 and onward The Innovators: 1930–1970 1970–2000 Digitalization. Transformation – first slowly and carefully, then in full The Media Moguls: The Entertainers: force. Consumers call the shots as The age of mass media begins. And Karl Otto's sons Tor, Åke and Kaj are Branching out from its base in books, newspapers and magazines, Bonnier media becomes digital and social, and in the thick of it. Acquiring a majority stake in news daily Dagens Nyheter. jumps into entertainment. Commercial network TV4. Cinema chain SF Bio. competition is global. Technology has a Buying magazine­ house Åhlén & Åkerlund. Founding the anti-Nazi newspaper Opportunities abound in an environment of deregulation and expansion. place at the table with companies such ­Expressen. Defending free speech. But it’s not without challenges. as BookBeat, Clio Online and KIT.

BONNIER ANNUAL REVIEW 2017 25 Board The Bonnier Board of Directors

Carl-Johan Bonnier Peder Bonnier Christian Caspar Maria Curman Arne Karlsson Chairman of the Board Member of the Board Member of the Board Member of the Board Member of the Board

Kerstin Mogull Jens Müffelmann Martin Harris Mikael Falk Sara Stenman Member of the Board Member of the Board Member of the Board Member of the Board Member of the Board Employee Representative Employee Representative Employee Representative

26 BONNIER ANNUAL REVIEW 2017 Group Bonnier Executive Management

Tomas Franzén Anki Ahrnell Casten Almqvist Lars Dahmén Anders Eriksson Niklas Hydén CEO, Bonnier AB CDO, Bonnier AB Head of Business Area, Head of Business Area, Head of Business Area, Head of Group Program Management Broadcasting Magazines News and Chief Procurement Officer

Karmo Kaas-Lutsberg Jan Lund Håkan Rudels Ulrika Saxon Göran Öhrn Head of Business Area, Head of Strategy, Corporate Head of Business Area, Head of Business Area, CFO, Bonnier AB Business to Business Development and M&A Books Ventures and Film Studios

BONNIER ANNUAL REVIEW 2017 27 At annualreview2017.bonnier.com you’ll find the full Annual Review 2017 as well as more examples of Bonnier’s CSR in practice.