ANNUAL REPORT 2003 >>02 Main Events >>19 Social responsibility >>30 Newspapers >>53 Schibsted Eiendom >>03 Key Figures >>20 Statement of the >>40 TV, Film & Publishing (Property >>04 The Schibsted Group Election Committee >>48 Business Management) >>05 President & CEO >>21 The Tinius Trust Development >>54 Articles of Kjell Aamot >>22 Focus on Newspaper >>49 Management Association >>06 Business Areas >>24 Focus on Mobile Development >>55 Annual Accounts >>10 The Board of phone >>50 Shareholder >>87 Auditor’s Report Director’s Report >>26 Focus on TV, Film & Information >>88 Company Structure >>16 Corporate Publishing >>52 Schibsted Finans >>89 Addresses Governance >>28 Focus on Internet (Finance) Tomorrow’s media society will be different from that of today. Anyone who doubts this needs only look at how young people use media. Their choices are forging the future direction. Schibsted follows this development closely. In this way, we are better equipped to exploit our strength as a leading media group in Scandinavia. >> 2 THE SCHIBSTED GROUP ANNUAL REPORT 2003 MAIN EVENTS • avis1 cuts approx. 10 full-time jobs. duction of 925 new episodes of the • Knut L. Tiseth appointed Managing popular series Hotel Cæsar. Q 1 03 Director of Schibsted Trykk. • Establishment of European Works • Morten Kongrød appointed Chief Council (ESU) in the Group. Executive Officer of Sandrew • Sandrew Metronome renews coopera- Metronome. tion agreement with Warner Bros. • Kristin Skogen Lund appointed Chief • 20 Min Holding AG enters into agree- Executive Officer of Scanpix ment with tamedia for the sale of Scandinavia. Swiss operations by 1st quarter 2007. • Metronome Film & Television enters into agreement with TV 2 for the pro- • 20minutos launched in Seville, with a • Aftonbladet’s online version shows its circulation of 50,000. first profit in June. Q 2 03 • Fish4, the largest UK player in online • New circulation record for VG in July, classified advertising, buys a 25-percent with 419,988 copies. stake in FinnTech. • Highest monthly circulation for • Tique celebrates its 20th anniversary Aftonbladet in July, with 475,000 with record issue. copies. • Schibsted achieves its best quarterly operating profit ever. • TV2 buys 24 percent of Kanal24. Schibsted’s indirect participating inter- est increases to 23 percent. • Aftenposten moves to Biskop the fourth city in which the paper is Gunnerus gate 14 after 127 years in published. Q 3 03 Akersgaten. First newspaper produced • Eesti Meedia’s printing plant in Tartu, at the new premises on 10 June. Kroonpress, starts to print the • Aftenposten launches new morning edi- Norwegian Økonomisk Rapport. An tion with one section in tabloid format. agreement which can open up new • New readership surveys show that markets. 20minutos in Spain, with a circulation of • Aftonbladet launches Mediapost AS, 550,000 and 1.2 million readers, is with A-pressen and Orkla Media, which Spain’s largest free newspaper and the will compete with Norway Post for dis- largest newspaper in Madrid. tribution of media products. • 20minutos is launched in Saragossa • Schibsted achieves its highest ever 3rd with a circulation of 40,000, making this quarter profits. • Hans Erik Matre appointed new Editor- • VG publishes pre-produced newspaper in-Chief of Aftenposten to succeed on Boxing Day for the first time. Q 4 03 Einar Hanseid who retires at the age of • VG, Aftonbladet and Svenska Dagbladet 60, after 10 years in the post. deliver their best results ever in 2003. • P.J. Anders Linder appointed as new • Svenska Dagbladet’s circulation tops Political Editor-in-Chief of Svenska 200,000 every month in 4th quarter. Dagbladet. • Decision to merge Schibsted’s • Aftonbladet Nya Medier launches online Norwegian book and magazine publish- payment services. ing companies under the name • Finnmer AB, which is controlled by Schibsted-Forlagene AS. Aftonbladet Hierta AB, acquires Swedish classified service blocket.se. • Schibsted increases its stake in 20 Min Holding AG from 41 percent to 98 per- Q 1 04 cent. • Purchase of 67 percent of the shares in Lithuania’s largest magazine publisher Zurnalu Leidybos Grupe (ZLG). • Decision to change the format of the morning edition of Aftenposten to tabloid from January 2005. >> 3 THE SCHIBSTED GROUP ANNUAL REPORT 2003 KEY FIGURES (NOK MILLION) 2003 2002 2001 2000 1999 Operating revenues 8 555 7 872 7 972 8 270 7 402 Operating expenses (7 422) (6 948) (7 309) (7 349) (6 703) Operating profit (loss) (EBITDA) 1 133 924 663 921 699 Depreciation and amortisation (354) (375) (391) (408) (401) Operating profit (loss) before goodwill and other revenues and expenses (EBITA) 779 549 272 513 298 Operating profit (loss) (EBIT) 701 494 56 537 172 Profit (loss) before taxes 681 271 (387) 950 114 Operating margin: EBITDA margin (%) 13.2 11.7 8.3 11.1 9.4 EBITA margin (%) 9.1 7.0 3.4 6.2 4.0 EBIT margin (%) 8.2 6.3 0.7 6.5 2.3 Profit ratio (%) 5.5 2.0 (5.4) 73 0.6 Equity ratio (%) 36.6 34.1 32.0 37.8 33.3 Return on equity (%) 21.5 7.6 (18.1) 24.2 1.8 Return on total assets (%) 11.3 5.8 (3.4) 14.6 3.5 Net interest bearing debt / EBITDA 0.7 1.1 2.1 1.3 2.2 EPS and EPS diluted (NOK) 6.92 2.26 (6.28) 8.78 0.61 Cash flow per share (NOK) 14.53 9.25 5.44 15.15 8.76 RISK per share 3.27 1.19 4.79 1.68 1.98 NEWSPAPERS Operating revenues 6 511 6 082 6 263 6 637 6 084 Operating profit (loss) (EBITA) 628 474 239 450 322 Operating profit (loss) (EBIT) 587 379 91 463 174 Operating margin (EBITA) (%) 9.6 7.8 3.8 6.8 5.3 ESTONIA Operating revenues 288 242 220 198 194 Operating profit (loss) (EBITA) 28 16 0 (20) (32) Operating profit (loss) (EBIT) 15 (2) (25) (39) (50) Operating margin (EBITA) (%) 9.7 6.6 0.2 (10.1) (16.3) TV/FILM Operating revenues 1 258 1 131 1 107 1 076 709 Operating profit (loss) (EBITA) 66 26 52 78 32 Operating profit (loss) (EBIT) 50 10 26 66 8 Operating margin (EBITA) (%) 5.2 2.3 4.7 7.3 4.5 PUBLISHING Operating revenues 349 339 320 277 268 Operating profit (loss) (EBITA) 35 34 19 18 8 Operating profit (loss) (EBIT) 26 25 5 19 (8) Operating margin (EBITA) (%) 10.1 10.1 5.9 6.3 2.9 CIRCULATION Aftenposten morning edition, weekdays 256 600 263 000 262 632 276 429 284 251 Aftenposten Aften, afternoon edition, weekdays 155 400 163 900 167 671 175 783 180 497 Aftenposten, Sunday 232 900 234 700 229 857 235 441 236 995 Verdens Gang, weekdays 380 190 390 510 387 508 375 983 373 552 Verdens Gang, Sunday 314 730 314 422 317 051 313 261 307 863 Aftonbladet, weekdays 442 100 435 900 401 500 379 933 380 600 Aftonbladet, Sunday 489 400 489 800 468 000 454 917 475 100 Svenska Dagbladet, weekdays 184 600 184 600 172 945 175 771 178 100 Svenska Dagbladet, Sunday 194 600 194 300 185 816 190 041 193 700 ADVERTISING VOLUMES (COLUMN METERS) Aftenposten 66 152 60 366 60 735 61 599 55 311 Verdens Gang 7 489 7 186 7 416 7 690 7 326 Aftonbladet 11 281 9 638 9 930 10 054 12 274 Svenska Dagbladet 19 891 20 271 19 965 28 514 29 832 DEFINITIONS KEY FIGURES: Operating margin: EBITDA-margin Operating profit (loss) before depreciation and amortisation, goodwill and other revenues and expenses / Operating revenues EBITA-margin Operating profit (loss) before goodwill and other revenues and expenses / Operating revenues EBIT-margin Operating profit (loss) / Operating revenues Profit ratio Net income (loss) attributable to majority interests / Operating revenues Equity ratio Equity / Total assets Return on equity Net income (loss) attributable to majority interests / Average equity excl. minority interests Return on total assets (Profit (loss) before taxes + interest expenses) / Average total assets EPS Net income (loss) attributable to majority interests / Average number of shares Cash flow per share (Profit (loss) before taxes + depreciation and amortisation +/- net changes in pensions +/- income from associated companies – taxes payable) / Average number of shares >> 4 THE SCHIBSTED GROUP ANNUAL REPORT 2003 THE SCHIBSTED GROUP 1839 Chr. Schibsteds Forlag 1996 Acquisition of Aftonbladet (publishing house) founded 1998 Acquisition of Svenska 1860 Christiania Adresseblad Dagbladet launched in Oslo, renamed 1998 Aftenposten in 1861 Investment in Eesti Meedia Group 1966 Takeover of VG 1999 Launch of the 20minutes 1989 Reorganisation from private free newspaper concept family company to a limited 1999 company and group Acquisition of Bladkompaniet 2000 1992 Listing on the Listing of Scandinavia Online Oslo Stock Exchange (SOL) 2001 1992 First TV and film investments Launch of 20minutos in Spain 2002 1995 First Internet and Launch of 20minutes in new media investments France 2003 1995 First investments in Estonia Acquisition of Blocket AB 1995 Acquisition of Metronome Schibsted is one of the leading media groups in Scandinavia. The Group’s by having clear financial targets for operating margins, return on capital headquarters are in Oslo. Most of its operations are based in Norway employed and equity ratio. and Sweden, but the Group has operations in 11 European countries. From its establishment in 1839 until 1989, Schibsted was a family- Net operating margin EBITA 12 % owned newspaper and publishing house with operating revenues (1989) Return on capital employed 15 % of approx. NOK 2 billion, 2,000 employees and all operations located in Equity ratio 35 % (min. 25 %) Norway. The Group consisted of Aftenposten, VG and Chr. Schibsteds Long-term target for profitable organic growth in revenues: 7 % Forlag.