Announcement no. 2/2010 Page 1 of 6 Copenhagen, 22 January 2010 NASDAQ OMX Copenhagen A/S Nikolaj Plads 6 DK-1007 Copenhagen K Carl Allers Etablissement A/S: Consolidated Accounts 2008/09 Profit and Loss Statement for the period 1.10.2008 – 30.9.2009 DKK 1,000 2008/09 2007/08 2006/07 Net turnover 3,864,941 4,303,450 4,066,727 Production costs -2,398,789 -2,508,814 -2,312,202 Gross profit 1,466,152 1,794,636 1,754,525 Marketing and distribution costs -994,614 -1,091,527 -1,020,662 Administration costs -586,459 -604,414 -480,464 Other income 3,884 2,401 11,628 Result of primary activities -111,037 101,096 265,027 Share of result in associated companies -20,360 -22,320 -5,531 Income from other shares and securities (fixed assets) 109,755 -64,908 46,977 Other financial income 69,537 82,790 66,416 Interest expense -20,068 -95,239 -10,344 Result before tax 27,827 1,419 362,545 Tax on the year’s income -23,811 -22,876 -87,156 The year’s result before minority interests 4,016 -21,457 275,389 The minority interests’ share of the result 494 1,581 1,363 Net profit for the year 4,510 -19,876 276,752 The CAE Board of Directors comment upon the business year as follows: “The result of The Aller Group did not live up to the expectations expressed in last year’s Annual Report. In 2008/09, The Aller Group realized a negative result of primary activities of DKK 111m, a decrease of DKK 212m compared to 2007/08. The result is primarily influenced a decrease in sale of weeklies and lower advertising income totaling DKK 439m. Out of this amount, DKK 241m is due to currency adjustments, and DKK 172m due to lower income from printed advertisements and internet turnover. In addition, the result has been influenced by extraordinary obligations concerning salaries, redundancy payments and pensions for previous employees of DKK 179m. Financial net income is DKK 159m, which is DKK 236m more than last year due to higher earnings on securities etc. c/o PricewaterhouseCoopers | Strandvejen 44 | DK-2900 Hellerup | Telephone +45 39 45 30 50 | Email: [email protected] | CVR no. 15359439 | www.rella.dk Announcement no. 2/2010 Page 2 of 6 The Aller Group’s surplus liquidity is represented by investments in both domestic and foreign bonds and shares totaling DKK 2,308m (2007/08: DKK 2.426m). Cash flow from operations was also positive this year: DKK 310m against DKK 763m last year. The year’s result after tax amounted to DKK 5m, which is DKK 25m better than in 2007/08.” The subsidiary groups’ after-tax results: DKKm 2008/09 2007/08 Aller Media A/S, Denmark -2 63 Aller International as -18 -6 Aller Media AS, Norway -33 -69 Svenska Aller AB, Sweden -12 62 Aller Media Oy, Finland 6 -5 “In general, the media markets – including Aller Media A/S - have been hard hit by the financial crisis. The advertising market has fallen by 20-25% which has also influenced the Aller Media Group in Denmark, not least within the free publication area, which is 100% dependent on advertising income. As a consequence of the general recession, Aller Media A/S initiated a major cost savings plan at the beginning of 2009 involving the closure or sale of several non-profitable titles and a substantial reduction of the company’s organization. The accounting year has thus been influenced by both falling advertising income and extraordinary costs re closure of titles and severance payments to employees given notice. The weeklies division is still doing well in spite of a falling total market for weeklies. The free publications from Chili Group and Where2Go are still loss-making and a major restructuring was therefore carried out during the accounting year. In total, the 2009/10 result of the free publications is expected to be in balance. During the accounting year, the special media division has been characterized by a high activity level and investments in new technological platforms which will support Aller Media A/S’ future investments in new media. For Aller Media A/S, the year’s result was a deficit of DKK 2m compared to a profit of DKK 63m last year.” The Annual Report mentions that the company – after the end of the accounting year – has disposed of its previous domicile in Valby as at 1 January 2010. The sales price is DKK 139m, which will result in a gain of approximately DKK 110m before tax in the 2009/10 accounts. Concerning the expected development in Aller Media A/S, the Annual Report states “that for the accounting year 2009/10, a markedly improved result is expected based on the cost savings carried out and a stabilizing market for weeklies and magazines plus extraordinary income from the sale of the old domicile.” Aller International as’ deficit of DKK 18m compared to last year’s deficit of DKK 6m “is characterized as unsatisfactory.” c/o PricewaterhouseCoopers | Strandvejen 44 | DK-2900 Hellerup | Telephone +45 39 45 30 50 | Email: [email protected] | CVR no. 15359439 | www.rella.dk Announcement no. 2/2010 Page 3 of 6 “As at 1 October 2009, G & S International as has been transferred to Aller Media A/S. As regards the remaining activities in Aller International as, all the activities of the subsidiary Aller Business have been put up for sale and a restructuring of the corporate organization will take place.” As a consequence of the expected deficit for 2009/10, “the company will be in need of additional liquidity and capital. The company has taken the necessary steps to secure this.” Concerning the expected development, it is mentioned “that the above-mentioned restructuring process will be continued during 2009/10 which is expected to lead to an improved but still negative result.” In the Aller Media AS Group, Norway, “turnover decreased from DKK 1,308m in 2007/08 to DKK 970m in 2008/09. Out of this, DKK 112 is due to currency losses, DKK 101m decrease in income from the printing division which was transferred internally in The Aller Group, and DKK 126m was the result of decreasing advertising income and income from internet activities plus missing turnover from closed titles. In addition, redundancy payments following a substantial reduction in the number of employees has negatively influenced the accounts. The year’s result has been reduced from a deficit of DKK 69m to a deficit of DKK 34m.” For the coming year, the Group is expecting “improved profitability due to the cost savings measures carried out and signs of a stabilized or even improved advertising market. This is in spite of increasing competition and the fact that the financial crisis is still expected to have a negative impact on sales. Within the internet activities which have seen the largest investments in later years, a higher profitability is expected. During the accounting year, the internet division has reduced its costs substantially and is therefore well positioned towards an improved advertising market. In total, a substantially better and positive result is expected for 2009/10.” Concerning the Svenska Aller AB Group, the Annual Report states “that the printing works in Helsingborg were closed during the accounting year and the activities transferred to the printing facilities in Norway and Denmark and to external printers. In addition, the activity Spray Portal Internet KB was sold. The above has negatively affected the year’s result and the equity by DKK 114m. Due to the above disposal, closure of the printing works and sale of the internet activity Spray Passagen Internet KB, Svenska Aller AB has had a difficult year. Turnover fell by DKK 138m to DKK 996m. The cost development has been stable. The result of primary activities shows a deficit of DKK 34m, a decrease of DKK 108m out of which DKK 114m must be characterized as extraordinary. The year’s result after tax is a deficit of DKK 12m compared to last year’s profit of DKK 62m.” For 2009/10, “a stable development in the activity level is expected together with a substantially better and positive result.” In the Aller Media Oy Group, Finland, “turnover fell from DKK 398m to DKK 385m. Costs developed satisfactorily, and seen in the light of the market development during 2008/09, the DKK 20m result of primary activities was satisfactory compared to the result of DKK 23m in 2007/08. The after tax result was a profit of DKK 6m against a deficit of DKK 5m last year. For 2009/10, a positive result in line with the 2008/09 result is expected.” c/o PricewaterhouseCoopers | Strandvejen 44 | DK-2900 Hellerup | Telephone +45 39 45 30 50 | Email: [email protected] | CVR no. 15359439 | www.rella.dk Announcement no. 2/2010 Page 4 of 6 Carl Allers Etablissement A/S: Consolidated Accounts 2008/09 Main figures from the Consolidated Balance Sheet as at 30.9.2009 DKK 1,000 2008/09 2007/08 2006/07 Assets Immaterial assets 399,350 556,693 375,533 Tangibe fixed assets 1,665,624 1,371,103 1,074,723 Financial long term assets 2,077,883 2,095,121 2,738,172 Total fixed assets 4,124,857 4,022,917 4,188,428 Stocks and goods 99,590 114,629 96,575 Total debtors 361,656 457,166 402,496 Other securities and shares 8,913 0 36,224 Cash 547,825 732,128 585,438 Total current assets 1,017,984 1,303,923 1,120,733 Total assets 5,160,841 5,326,840 5,309,161 DKK1,000 2008/09 2007/08 2006/07 Liabilities Total equity 3,702,238 3,752,953 3,899,844 Minority interests 376 390 1,533 Total provisions 273,051 280,181 287,093 Long term debt 49,575 69,335 33,194 Short term debt 1,135,601 1,223,981 1,087,497 Total debt 1,185,176 1,293,316 1,120,691 Total liabilities 5,160,841 5,326,840 5,309,161 As at 30.9.2009, the Group’s cash amounts to DKK 548m which combined with a holding of liquid securities and shares valued at DKK 1,760m adds up to a total liquid reserve of DKK 2,308m (2007/08: DKK 2,426m).