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1 ANNUAL REPORT 2003

2 >>02 Main Events >>03 Key Figures >>04 The Schibsted Group >>05 President & CEO Kjell Aamot >>06 Business Areas >>10 The Board of Director s Report >>16 Corporate Governance >>19 Social responsibility >>20 Statement of the Election Committee >>21 The Tinius Trust >>22 Focus on Newspaper >>24 Focus on Mobile phone >>26 Focus on TV, Film & Publishing >>28 Focus on Internet >>30 Newspapers >>40 TV, Film & Publishing >>48 Business Development >>49 Management Development >>50 Shareholder Information >>52 Schibsted Finans (Finance) >>53 Schibsted Eiendom (Property Management) >>54 Articles of Association >>55 Annual Accounts >>87 Auditor s Report >>88 Company Structure >>89 Addresses

3 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.

4 >> 2 MAIN EVENTS Q 1 03 Q 2 03 Q 3 03 Q 4 03 Q minutos launched in Seville, with a circulation of 50,000. Fish4, the largest UK player in online classified advertising, buys a 25-percent stake in FinnTech. Tique celebrates its 20th anniversary with record issue. Schibsted achieves its best quarterly operating profit ever. TV2 buys 24 percent of Kanal24. Schibsted s indirect participating interest increases to 23 percent. Aftenposten moves to Biskop Gunnerus gate 14 after 127 years in Akersgaten. First newspaper produced at the new premises on 10 June. Aftenposten launches new morning edition with one section in tabloid format. New readership surveys show that 20minutos in Spain, with a circulation of 550,000 and 1.2 million readers, is Spain s largest free newspaper and the largest newspaper in Madrid. 20minutos is launched in Saragossa with a circulation of 40,000, making this Hans Erik Matre appointed new Editorin-Chief of Aftenposten to succeed Einar Hanseid who retires at the age of 60, after 10 years in the post. P.J. Anders Linder appointed as new Political Editor-in-Chief of Svenska Dagbladet. Aftonbladet Nya Medier launches online payment services. Finnmer AB, which is controlled by Aftonbladet Hierta AB, acquires Swedish classified service blocket.se. Schibsted increases its stake in 20 Min Holding AG from 41 percent to 98 percent. 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 avis1 cuts approx. 10 full-time jobs. Knut L. Tiseth appointed Managing Director of Schibsted Trykk. Morten Kongrød appointed Chief Executive Officer of Sandrew Metronome. Kristin Skogen Lund appointed Chief Executive Officer of Scanpix Scandinavia. Metronome Film & Television enters into agreement with TV 2 for the production of 925 new episodes of the popular series Hotel Cæsar. Establishment of European Works Council (ESU) in the Group. Sandrew Metronome renews cooperation agreement with Warner Bros. 20 Min Holding AG enters into agreement with tamedia for the sale of Swiss operations by 1st quarter Aftonbladet s online version shows its first profit in June. New circulation record for VG in July, with 419,988 copies. Highest monthly circulation for Aftonbladet in July, with 475,000 copies. the fourth city in which the paper is published. Eesti Meedia s printing plant in Tartu, Kroonpress, starts to print the Norwegian Økonomisk Rapport. An agreement which can open up new markets. Aftonbladet launches Mediapost AS, with A-pressen and Orkla Media, which will compete with Norway Post for distribution of media products. Schibsted achieves its highest ever 3rd quarter profits. VG publishes pre-produced newspaper on Boxing Day for the first time. VG, Aftonbladet and Svenska Dagbladet deliver their best results ever in Svenska Dagbladet s circulation tops 200,000 every month in 4th quarter. Decision to merge Schibsted s Norwegian book and magazine publishing companies under the name Schibsted-Forlagene AS.

5 >> 3 KEY FIGURES (NOK MILLION) Operating revenues Operating expenses (7 422) (6 948) (7 309) (7 349) (6 703) Operating profit (loss) (EBITDA) Depreciation and amortisation (354) (375) (391) (408) (401) Operating profit (loss) before goodwill and other revenues and expenses (EBITA) Operating profit (loss) (EBIT) Profit (loss) before taxes (387) Operating margin: EBITDA margin (%) EBITA margin (%) EBIT margin (%) Profit ratio (%) (5.4) Equity ratio (%) Return on equity (%) (18.1) Return on total assets (%) (3.4) Net interest bearing debt / EBITDA EPS and EPS diluted (NOK) (6.28) Cash flow per share (NOK) RISK per share NEWSPAPERS Operating revenues Operating profit (loss) (EBITA) Operating profit (loss) (EBIT) Operating margin (EBITA) (%) ESTONIA Operating revenues Operating profit (loss) (EBITA) (20) (32) Operating profit (loss) (EBIT) 15 (2) (25) (39) (50) Operating margin (EBITA) (%) (10.1) (16.3) TV/FILM Operating revenues Operating profit (loss) (EBITA) Operating profit (loss) (EBIT) Operating margin (EBITA) (%) PUBLISHING Operating revenues Operating profit (loss) (EBITA) Operating profit (loss) (EBIT) (8) Operating margin (EBITA) (%) CIRCULATION Aftenposten morning edition, weekdays Aftenposten Aften, afternoon edition, weekdays Aftenposten, Sunday Verdens Gang, weekdays Verdens Gang, Sunday Aftonbladet, weekdays Aftonbladet, Sunday Svenska Dagbladet, weekdays Svenska Dagbladet, Sunday ADVERTISING VOLUMES (COLUMN METERS) Aftenposten Verdens Gang Aftonbladet Svenska Dagbladet 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 Equity ratio Return on equity Return on total assets EPS Cash flow per share Net income (loss) attributable to majority interests / Operating revenues Equity / Total assets Net income (loss) attributable to majority interests / Average equity excl. minority interests (Profit (loss) before taxes + interest expenses) / Average total assets Net income (loss) attributable to majority interests / Average number of shares (Profit (loss) before taxes + depreciation and amortisation +/- net changes in pensions +/- income from associated companies taxes payable) / Average number of shares

6 >> 4 THE SCHIBSTED GROUP 1839 Chr. Schibsteds Forlag (publishing house) founded 1860 Christiania Adresseblad launched in Oslo, renamed Aftenposten in Takeover of VG 1989 Reorganisation from private family company to a limited company and group 1992 Listing on the Oslo Stock Exchange 1992 First TV and film investments 1995 First Internet and new media investments 1995 First investments in Estonia 1996 Acquisition of Aftonbladet 1998 Acquisition of Svenska Dagbladet 1998 Investment in Eesti Meedia Group 1999 Launch of the 20minutes free newspaper concept 1999 Acquisition of Bladkompaniet 2000 Listing of Scandinavia Online (SOL) 2001 Launch of 20minutos in Spain 2002 Launch of 20minutes in France 2003 Acquisition of Blocket AB 1995 Acquisition of Metronome Schibsted is one of the leading media groups in Scandinavia. The Group s headquarters are in Oslo. Most of its operations are based in Norway and Sweden, but the Group has operations in 11 European countries. From its establishment in 1839 until 1989, Schibsted was a familyowned newspaper and publishing house with operating revenues (1989) of approx. NOK 2 billion, 2,000 employees and all operations located in Norway. The Group consisted of Aftenposten, VG and Chr. Schibsteds Forlag. In 1989, the Company was transformed from a private company to a limited company with a group structure. The Group was listed on the Oslo Stock Exchange in Schibsted s present activities relate to media products and rights in the field of newspapers, television, film, publishing, multimedia and mobile services. The news, information and entertainment content are communicated in a variety of formats: paper, the Internet, television, cinema, video, DVD and wireless terminals (mobile telephones, PDAs etc.). The Group has operating revenues of approx. SEK 8.5 billion and 4,690 employees, of whom 2,130 work in Norway. VISION Schibsted s vision is to be a leading Scandinavian media company, as a content provider for consumers and advertisers, irrespective their choice of media VALUE BASE Schibsted s publishing tradition provides the value base for the Company s activities. Editorial integrity, impartiality, reliability and quality are to be the keywords for the Group s products. The Group s expertise is to be improved and enhanced, with the main emphasis on product development and productivity. OBJECTIVE A main objective is to ensure that the shareholders receive a competitive return through a combination of an increase in the share price over time and direct dividends. This will be achieved through long-term growth and by having clear financial targets for operating margins, return on capital employed and equity ratio. Net operating margin EBITA 12 % Return on capital employed 15 % Equity ratio 35 % (min. 25 %) Long-term target for profitable organic growth in revenues: 7 % MAIN STRATEGY Schibsted will strengthen and develop the traditional media, while seeking growth and development in its core areas. Building on the strong position and competitive edge which the Group currently possesses, Schibsted will also seek development and growth in new media. Schibsted will exploit its position as a central content provider in connection with the major change processes permeating the media industry. Scandinavia will be regarded as Schibsted s domestic market, but aims for gradual internationalisation. Growth will come mainly from operations where the Group holds strategic control or has the potential to achieve such control within a reasonable period (two to three years). KEY STATISTICS Operations in 11 countries: Norway, Sweden, Finland, Denmark, Estonia, Switzerland, France, Spain, Latvia, Lithuania and Poland. Number of employees: (Of which 2,560 outside Norway) Daily readers of the Group s newspapers: 8,8 million 1) Daily circulation of the Group s newspapers: 3,4 million 1) 1) including regional newspapers

7 >> 5 PRESIDENT AND CEO POSITIONED FOR GROWTH After a two-year focus on core operations and profitability, the Group achieved its best result ever, with an operating profit (EBITA) of NOK 779 million (549). This was achieved in a year which continued to bear the hallmark of recession in all our markets. KJELL AAMOT PRESIDENT AND CEO These good results help to strengthen our financial flexibility and support the capability of realising our main strategy, which is to strengthen and further develop the established media and seek new growth in core business. The autumn strategy review confirms our intention to exploit the Group s strong positions and competitive advantage, in order to seek development and growth in new media. In many ways, 2003 was the year in which Schibsted s venture into new media finally made its breakthrough. Since the mid- 1990s, the Group has worked consciously to use the traditional media in its targeted investment in the new online channels. Distancing itself from the world s alternating doubt and belief in the future of the dot com market, Schibsted has worked indefatigably to build positions in this area. During the year, the online editions of the tabloid newspapers strengthened their positions as the most-visited websites in Scandinavia. After several years of negative results, these businesses were for the first time able to show positive operating profits, due to strong growth in turnover and good cost control. Online classified operations, through FINN.no, also continued to show strong growth in FINN.no became the most profitable of all the companies in the Schibsted Group, with an operating margin of 32 percent. Schibsted s free newspaper, 20 minutes, also finally made its breakthrough both in the readership and advertising markets in Revenue in the 4th quarter was as much as 46 percent up on the same period in Revenue growth continues in 2004, as do the rising readership figures, which are about to establish the newspaper as number one or two among the most-read news-papers in Switzerland, Spain and France. We were therefore delighted to increase our exposure and strategic influence in the project by buying out the largest of our coinvestors in 20 minutes in March Although Schibsted s largest relative growth is in online operations, 20 minutes and our media commitments in Estonia, the tabloid newspapers VG and Aftonbladet continue to be clearly the most important contributors to the Group s profitability. Both achieved record profits in We are pleased to say that the strategy of reinvesting some of the value creation from traditional media companies in new media, with great long-term growth potential, appears to have been successful. This strategy will be continued with renewed vigour. In recent years, corporate governance has attracted much attention. It is one of Schibsted s values that its publishing traditions must form the basis of all activities. This means that editorial impartiality, reliability and quality must be the watchwords for all the Group s activities. With this in mind, we have found it appropriate to describe the premises for editorial corporate governance in the Group s Annual Report. This is continued in more detail in the annual reports of the individual newspapers, which also give an insight into the editorial departments internal rules. In 2004, Schibsted s priorities will continue to be increased profitability, enhanced financial flexibility and ability to act, in order to meet any structural changes in the media market. In this regard, our financial targets have been raised. This means that the net operating margin (EBITA) requirement, over one business cycle, has increased from 11 to 12 percent. At the same time, we have defined an ambitious long-term target of seven percent for annual organic growth. This is a demanding target, but if we consider the results and market positions at year-end, it is nevertheless realistic. It does, however, place great demands on the organisation, and for this reason we have upgraded the work on organisational development. A separate department has been set up to coordinate the work in management and skills development in the Group. We face considerable tasks in the time ahead, but we have never been better equipped to meet the challenges. This applies to our established market positions, our financial conditions and, in particular, our organisation and employees. So, the scene appears to be set for an exciting development for the Group, which will benefit our customers, partners, employees and, of course, our shareholders.

8 >> 6 BUSINESS AREAS NEWSPAPERS Schibsted owns Scandinavia s two largest newspapers, VG in Norway and Aftonbladet in Sweden. Aftonbladet is also the largest Nordic newspaper. The Group also owns Norway s second largest newspaper Aftenposten, the Swedish Svenska Dagbladet, the free newspapers avis1 and 20 minutes and has ownership interests in the largest regional newspapers in Norway. Schibsted s international free newspaper concept 20 minutes, is published in Switzerland (Zürich, Bern and Basel), Spain (Madrid, Barcelona, Seville and Saragossa) and France (Paris, Lille, Lyon and Marseille). 20minutes is among the most-read newspapers in the areas where it is published and in Europe as a whole. In March 2004, Schibsted increased its shareholding in 20 Min. Holding AG from 41 percent to 98 percent. In Estonia, Schibsted has a majority stake in Eesti Meedia Group, the country s largest media group. The company publishes Estonia s two largest newspapers, SL Õhtuleht (50%) and Postimees, five Estonian local newspapers, operates Estonia s biggest printing plant, AS Kroonpress, and also owns 50% of Estonian Magazine Group, which publishes a number of periodicals and special-interest magazines. Schibsted online newspapers have achieved a leading position through their established brand names. VG and Aftonbladet are the most-read online newspapers in Norway and Sweden respectively. HIGHLIGHTS 2003 BUSINESSES Operating profit (EBITA): NOK 656 million, incl. Estonia Svenska Dagbladet, VG and Aftonbladet report their best ever operating profit, despite the continuing recession in the advertising market. Clear breakthrough for the free newspaper 20 minutes which shows profitability Online newspapers show positive results Aftenposten moves to Biskop Gunnerus gate in Oslo and launches new morning edition with a tabloid section 20minutos launched in Seville and Saragossa Continued success for FINN.no number of unique users increases by 50 percent MediaPost AS established by Aftenposten with Orkla Media and A-pressen. 1st quarter 2004: Schibsted purchases the shares of Apax Partners and a group of Swiss investors in 20 Min Holding AG, thereby owning 98 percent of the shares Newspapers Aftenposten AS 100 % Verdens Gang AS 100 % avis1 AS 100 % Schibsted Trykk AS 100 % Tidningstryckarna Aftonbladet Svenska Dagbladet AB 100 % European Media Ventures AS 100 % Svenska Dagbladet Holding AB 99 % 20 Min Holding AG 98 % Scanpix Scandinavia AB 75 % Blocket AB 73 % Aftonbladet Hierta AB 49 % 1) Harstad Tidende Gruppen AS 49 % Adresseavisen ASA 32 % Stavanger Aftenblad ASA 31 % Tidningarnas Telegrambyrå AB 30 % Fædrelandsvennen AS 25 % Bergens Tidende AS 24 % NTB AS 22 % Estonia AS Kanal % AS Eesti Meedia 93 % Lithuania UAB Zurnalu Leidybos Grupe 67 % 1) Consolidated 100% in Schibsted s accounts, as the Group has full financial and operational control.

9 >> 7 BUSINESS AREAS TV, FILM & PUBLISHING Schibsted is one of the leading Scandinavian media companies in the TV and film areas. The Group is the majority owner of Metronome Film & Television, the largest independent Scandinavian player in film and TV production, with subsidiaries in Sweden, Norway, Denmark and Finland. Sandrew Metronome is a leading Nordic company within purchasing and distribution of films for cinema, video, DVD and TV. The Company also has extensive cinema operations in Sweden, Denmark and Finland. Sandrew Metronome is involved in Scandinavian film productions as a producer and investor, and collaborates extensively with international producers, such as Warner Bros. The Schibsted Group owns 33.34% of TV2, Norway s largest commercial TV channel. Chr. Schibsteds Forlag, founded in 1839, Schibsted Internasjonale Bøker, Bladkompaniet and Svenska Förlaget form the core of Schibsted s publishing activities. Bladkompaniet is Norway s leading publisher of paperbacks and a highly successful publisher of comics. Schibsted also publishes a number of periodicals, including the interior design magazine Maison, the fashion magazine Tique and the financial journal Dine Penger. Schibsted has a 50% stake in the newspaper Dagens Medisin, which is targeted at healthcare professionals. HIGHLIGHTS 2003 Operating profit (EBITA): NOK 101 million Metronome Film & Television consolidates its position as the largest independent TV producer in the Nordic region Sandrew Metronome achieves excellent results in film and video distribution, while cinema operations disappoint Schibsted s Norwegian publishing companies merge Morten Kongrød takes over as CEO of Sandrew Metronome 1000th episode of Hotell Cæsar produced TV 2 Group strengthens its position as an electronic media group by purchasing 34 percent of the shares in Kanal24, the new national commercial Radio channel BUSINESSES TV/Film Metronome Film & Television AB 65 % Sandrew Metronome AB 50 % TV 2 Gruppen AS 33 % Publishing Bladkompaniet AS 100 % Chr. Schibsteds Forlag AS 100 % Dine Penger AS 100 % Schibsted Internasjonale Bøker AS 100 % Svenska Förlaget AB 100 % Dagens Medisin AS 50 % OTHER OPERATIONS Portal and content market operations are mainly carried out in the newspapers and under their brands. This fits in with the strategy of greater use of existing brands in new markets and new distribution channels. In addition to the newspapers online operations, Schibsted also has operations in the mobile services and online bookstore segments. BUSINESSES Schibsted Telecom AS 100 % Bokkilden AS 100 % Biljett Direkt Ticnet AB 34 % Participating interests as of

10 >> 8 SCHIBSTED ANNUAL REPORT 2003 kanal2.ee aftenpostena.no 2 1 aftonbladet.se svd.se aftenposten.no vg.no minutten.ch 20minutes.fr 20minutos.es eestimeedia.ee scanpix.no metronome.se tv2.no vg.no Aftenposten. Norway s largest morning newspaper. 2. Kanal2. Estonia s second-largest TV channel. 3. VG WAP. News and more on your mobile. 4. Aftenpostens WAP. News on your mobile. 5. SvD WAP. News on your mobile. 6. Aftonbladet.se. Sweden s most visited website by far. 7. SCANPIX. Scandinavia s leading picture agency. 8. Ajakirjade Kirjastus. Publishes magazines in Estonia minutter. Free newspaper, published in three countries. 10. VG Nett. Norway s leading website 11. TV2.no. TV2 s website. 12. Metronome. The Nordic Region s largest independent TV production company.

11 sch-ib.no postimees.ee tv2.no vg.no 15 svd.se metrome.se dinepenger.no finn.no Postimees. Estonia s leading quality newspaper. 14. Schibsted Internasjonale Bøker. Sells foreign language books in Norway. 15. TV2. Norway s largest advertising-financed TV channel. 16. SvD.se. Svenska Dagbladet s online newspaper. 17. VG. - Norway s largest newspaper. 18. FINN-no. The leading marketplace for online classified advertising. 19. Dine Penger Online. Online edition of Dine Penger. 20. Hotell Cæsar. One of Metronome s many TV productions.

12 dinepenger.no svd.se sandrewmetronome.fi sandrewmetronome.no sandrewmetronome.dk bladkompaniet.no bladkompaniet.no tique.no tique.no sandrewmetronome.se Svenska Dagbladet. Leading Swedish morning newspaper, enjoying strong growth. 22. Dine Penger. Norway s largest financial magazine. 23. Bladkompaniet. Large publisher of magazines and books for entertainment and information. 24. Sandrew Metronome. Sells films on video and DVD. 24. Sandrew Metronome. Film production, distribution, cinema management and licensees. 25. Tique. Leading fashion and trend magazine. 26. Maison. Well established Norwegian interior design magazine.

13 >> 9 SCHIBSTED ANNUAL REPORT 2003 schibsted-forlag.no aftonbladet.se bokkilden.no aftenposten.no aftonbladet.se minuten.fr 20minuten.se 20minuten.no Aftonbladet WAP. - Read Aftonbladet on your mobile! 29. Chr. Schibsteds Forlag. Leading non-fiction publisher; publishes books on a wide range of topics. 30. Aftenposten.no. Aftenposten s online newspaper with increasing support. 31. Bokkilden. Norway s leading purely online bookstore. 32. Inpoc. Mobile services for young people minutter. Online version of the free newspaper. 34. Aftonbladet. The largest newspaper in the Nordic Region.

14 >> 10 THE BOARD OF DIRECTORS REPORT OLE JACOB SUNDE CHAIRMAN OF THE BOARD Executive Chairman of Formuesforvaltning ASA. Founded Industrifinans Forvaltning ASA (1983), of which he was Managing Director until June Former Consultant with McKinsey & Co. ( ). Board appointments include the Tinius Trust and Aftonbladet AB. BERIT BJERG Employed by Aftenposten AS since Consultant in the Advertising Department, Real Estate market. Media Consultant BI Norwegian School of Management (2002). General Secretary of Aftenposten s Union of Commercial and Office Employees since JAN REINÅS Former President and CEO of Norske Skog and SAS Norge. Former CEO of Fosen Trafikklag and Trondheim Trafikkselskap. Chairman of Norske Canada, Pan Asia Paper and Norwegian Wood Pulp Industry Branch Association. Board Member of PIL, NHO and CEPI. Former Chairman of Sparebanken Midt-Norge, the Norwegian Post Office Services and Norwegian State Railways. GUNNAR NORDBY Employed with Aftenposten AS since General Secretary of Aftenposten s Printing Union. Member of the National Committee of the Norwegian Union of Graphic Workers. LARS M. BERG Independent investor, consultant and Board Member of Telefonica Moviles, Eniro, Ratos, Net Insight, Anoto and a number of non-listed companies. President & CEO Telia ( ). Head of Mannesmann Telekom ( ). Has resigned from his Board position. MONICA CANEMAN Former Vice-President SE- Banken ( ). Employed by SE-Banken from Education: Stockholm School of Economics (1976). Directorships in Svenska Dagbladet AB, SJ AB (Swedish Railways), Poolia AB, Nocom AB, Frango AB, Resco AB, Xponcard AB, EDB Business Partner ASA, Citymail AB, Investment AB Öresund, Akademikliniken AB and Interverbum AB. TINIUS NAGELL- ERICHSEN, DEPUTY CHAIRMAN OF THE BOARD Master of Science (1959 LSE). Board Member of Aftenposten. Former journalist with Aftenposten, Managing Director of Verdens Gang and Aftenposten. Chairman of Norwegian Federation of Newspaper Employers for several terms Chairman of the Board of Schibsted for several terms. Former Chairman of the Board of Fædrelandsvennen, Board Member and Chairman of the Board of Verdens Gang and Board Member of Aftonbladet AB. ALEXANDRA BECH GJØRV Executive VP Organisation and Competence, Norsk Hydro ASA. Director Human Resources Norsk Hydro ( ). Assistant Director of Strategy & Organisational Development, Hydro Automotive Structures ( ). Company Secretary of Norsk Hydro ASA, Oslo ( ). Lawyer with Norsk Hydro USA, Inc. ( ). Legal Adviser with Edwards & Angell, Boston ( ). Legal representative in the law firm Schjødt, Oslo ( ). Former Member of the Supervisory Board of Den Norske Bank ( ). HILDE HARBO Degree in political science. Employed by Aftenposten since Head of Politics, News Editorial Staff, Aftenposten. Formerly Deputy Member of the Board of Schibsted ( ), Deputy Leader of Aftenposten s Editorial Staff Union, Member of the Board of the Oslo Union of Journalists, Vice President of the Press Corps of the Norwegian Parliament. HÅKON KJERNSMO Typographer. Employed by VG since General Secretary of VG s Graphical Workers Union. Board Member of the Oslo Union of Graphical Workers. Deputy Representative of the Committee of the Norwegian Union of Graphical Workers. CATO A. HOLMSEN Chairman and Partner of FSN Capital. Formerly Deputy Group CEO, Scancem AB and CEO, Scancem International ANS. MSc Eng ETH Zürich Further Studies: University of Newcastle and IMEDE Chairman of Eiendomsspar AS, Fesil ASA, Grieg International AS/Grieg Shipping AS and Optimera Gruppen AS. Board Member of Aftenposten AS, 20 Min Holding AG, Eksportfinans ASA, NorgesGruppen ASA, Kongsberg Automotive ASA, Jamo AS, Johan G Olsen As and a number of other companies.

15 >> 11 THE BOARD OF DIRECTORS REPORT In a demanding market, Schibsted in 2003 achieved the highest operating profit in its history. The good result is mainly explained by a dedicated focus on improving the Group's core activities. Schibsted is one of the leading media groups in Scandinavia. The Group s headquarters are in Oslo. Most of its operations are located in Norway and Sweden, but the Group has operations in 11 European countries. In 2003 Schibsted has seen the effects of its 2002 strategy, which focused on improving the Group s core activities. Profitability has improved within all business areas, and the Group achieved an EBITA margin of 9.1 percent (7.0 percent) for the year. The operating profit of NOK 779 million is the highest in Schibsted s history. The good results were achieved in spite of continued weakness in the advertising market, particularly in classified advertising. In 2003 the Group further improved its financial flexibility, and is well positioned for continuing growth in line with the Group s strategy. Per 3 March 2004, Schibsted increased its shareholding in 20 Min Holding AG from 41 percent to approximately 98 percent. For the increased shareholding, Schibsted is paying between EUR 50 million and EUR 55 million, depending on the final details regarding participation by the investors in loans and further financing. Within the end of March, the Swiss investors will have to decide whether they want to participate. During the autumn 2003 Schibsted acquired, through Finnmer AB, 100 percent of the shares in the Swedish company Blocket AB for SEK 183 million. Blocket runs the classified advertising service The acquisition strengthens Schibsted s position and is a market leader in the online purchase and sale of cars and miscellaneous items in Sweden. This acquisition strengthens and complements Schibsted s position in online classified advertising services in Sweden. For the Newspapers business area, profitability improved in The Group s subscription newspapers experienced growth in retail and brand advertising. However, for Aftenposten, the progress within the classifieds market is still weak. Svenska Dagbladet achieved its best operating profit since being in Schibsted s ownership. The Group s single copy sales newspapers maintained their strong positions andboth VG and Aftonbladet reached new circulation records in The single copy sales newspapers advertising revenues grew by more than 12 percent compared with was one of the best years ever for the TV/ Film business area. The different business units improved their profitability considerably in Increased activity has characterised the year for the Group s production companies. However, the production of commercials is still at a low level. The distribution business in Sandrew Metronome achieved its best annual result ever. For the year as a whole the cinema business in Sweden reduces operating profits. For TV 2, a strong first half of the year was followed by a weaker autumn. The business area, Publishing, achieved an operating margin of 10.1 percent, the same margin as in the record year CONTINUED OPERATION In accordance with 3-3 of the Accounting Act, the Board confirms that the assumption regarding continued operations for the Group is fulfilled. The 2003 financial statements have been prepared on this assumption. The basis for the assumption is the Group s long-term strategic prognosis. The Group is in a sound financial position. EXPLANATION OF THE ANNUAL ACCOUNTS In 2003, the Group s operating revenues were NOK 8,555 million (NOK 7,872 million). NOK 200 million of the increase was due to the weakening of the Norwegian krone against the Swedish krona. The operating profit (EBITA) showed an improvement from NOK 549 million to NOK 779 million. The progress was due to better results from all of the Group s business areas. The net effect of the weakening of the Norwegian krone was positive, adding approx. NOK 10 million to the operating profit. Other revenues and expenses of NOK -17 million (8 million) relate to restructuring in Norway and Sweden. In 2003, income from associated companies was NOK 34 million (NOK -67 million). 20 minutes, TV 2 and the regional papers achieved better results than in The Group issued bonds at a total of NOK 900 million In 2003, financial items amounted to NOK -54 million (-156 million). Lower interest rates, as well as a reduction in interest bearing debt, resulted in lower interest expenses in The Group s share portfolio was written down by NOK 10 million (NOK 59 million). Schibsted has changed its accounting practice regarding foreign currency in Currency gains and losses related to liabilities, which secure investments in foreign units, are reported as translation differences, which are entered under equity. The change in accounting practice implies a considerable reduction in currency gains and losses reflected in the Group s financial accounts. The accounts for previous periods have been revised correspondingly. The change does not affect Group equity. During October 2003, the Group issued bonds at a total of NOK 900 million on the Norwegian bond market, in order to compensate for the reduced borrowing limit related to existing credit facility. The credit facility amounted to USD 180 million as of December 2003, and is due for payment in October During the spring 2004, the facility will be replaced by a new facility. At the end of 2003, interestbearing debt totalled NOK 1.6 billion (1.7 billion). Net interest bearing debt has been reduced to NOK 733 million (NOK 1,002 million), in spite of repurchase of own shares, payment of dividend in May and the acquisition of Blocket in Sweden. Total liquidity reserves for the Group totalled approx. NOK 2.0 billion

16 >> 12 THE BOARD OF DIRECTORS REPORT at the end of Profit before tax in 2003 was NOK 681 million (NOK 271 million). Tax expenses in 2003 amounted to NOK 197 million (NOK 115 million). Due to differences between the basis for income taxes and profit (loss) before taxes, the Group s tax expenses may deviate from the nominal Norwegian tax rate of 28 percent. These differences are primarily related to amortisation of goodwill, income from associated companies and losses in foreign subsidiaries for which no deferred tax benefit is recognised in the balance sheet. Due to increased profits, reduced losses in foreign subsidiaries and positive contributions from associated companies, the Group s tax rate was reduced to 29 percent in The Schibsted management has been granted options on Schibsted shares for the years In periods the market price has exceeded the strike price and, as a consequence, the options have had a dilutive effect on earnings per share. The dilutive effect is immaterial, hence earnings per share and earnings per share diluted are both NOK 6.92 (NOK 2.26). In 2003, Schibsted invested NOK 263 million in tangible and intangible fixed assets and NOK 209 million in shares, of which the investment in Blocket AB amounted to NOK 170 million (SEK 183 million). In 4 th quarter of 2003, 20 Min Holding AG sold 49.5 percent of the shares in the Swiss operation to Express Zeitung AG based on an agreement entered into in the 1 st quarter of Remaining shares are agreed sold to Express Zeitung AG within 1 st quarter of The price to be paid for the remaining 50.5 percent of the shares is dependent upon results in 2005 and At the end of 2003, total assets reflected in the group balance sheet amounted to NOK 6.9 billion (6.4 billion). Fixed assets made the largest account, amounting to NOK 4.8 billion Schibsted has purchased 1,490,518 shares (NOK 4.7 billion), whereof the Group s printing plants amounted to NOK 1.7 billion. Investments in shares and associated companies were booked at NOK 0.9 billion. The market value of the portfolio exceeds the book value. The Group's goodwill reflected in the balance sheet amounted to NOK 0.8 billion at the end of The increase from 2002 was due to the acquisition of Blocket AB. The goodwill reflected in the balance sheet can be justified for all the investments on an individual basis. In accordance with the authorisation from the Annual Shareholder s Meeting, Schibsted ASA has repurchased 1,490,518 shares, of which 405,000 were bought in In the 3 rd quarter, 47,482 shares were sold to the trust Schibstedansattes Aksjekjøp at a price of NOK 100 per share, in connection with offering employees the opportunity to buy shares at a discounted price. The Group s equity ratio was 36.6 percent at the end of 2003 (34.1 percent), of which own shares totalled approx. two percent. The proposed dividend allocation in 2003 is NOK 3.00 per share (NOK 2.00). NEWSPAPERS The Newspapers business area improved it s profitability in 2003, and operating profit (EBITA) amounted to NOK 628 million (NOK 474 million). The improvement is mainly related to the results of VG, Aftonbladet and Svenska Dagbladet. Aftenposten maintained its position and experienced a progress within both the brand and retail markets. However, the progress within the classified advertising market is still weak. The market for vacancy advertising was weak during Within the market for private cars there is an increasing trend to go online, where FINN.no has a strong position. The real-estate market showed stable volumes compared with Aftenposten has started using the free paper, avis 1, as a strategic tool for increasing the reach of realestate advertisements. This tool has been well received by estate agents. As expected, Aftenposten s circulation fell for all editions compared with This corresponds with the trend in the market, where the majority of subscription newspapers experience a decline. As a consequence of continued decreasing revenues in Aftenposten, extensive new measures are needed on the cost and revenue sides beyond current programme. At the same time, work will be performed in order to improve the operating margin significantly over the next two to three years. The measures taken will be determined by the product and readership strategy selected to strengthen Aftenposten s position in the reader market. The measures will be announced in conjunction with the publication of the 1 st quarter of 2004 accounts. In 2003 Aftenposten moved from Akersgaten to more suitable premises in Biskop Gunnerus Gate 14. The move did not cause any significant production problems. There was a great deal of excitement surrounding the introduction of the new tabloid supplement in Aftenposten. A reader survey carried out shortly after the launch revealed that the target group, women and young people, were positive towards the new product. It is still too early to say what effect the launch will have on advertising revenues. In 2003 Einar Hanseid decided to use his contractual right to retire from his position as Editorin-Chief after reaching the age of 60, and after 10 years in the job. Hans Erik Matre (48) took over as new Editor-in-Chief of Aftenposten after Hanseid on 1 January VG maintained its strong position in 2003, with a market share for casual sales exceeding More than 2, 5 million unique visitors during one month 67 percent. The circulation on weekdays decreased compared with 2002, whilst the Sunday edition showed a minor increase. The decrease on weekdays was due to a slight fall in the market as a whole in recent years. In 2003 VG was for the first time published on Boxing Day, which reduces the average circulation on weekdays. In 2003 VG delivered its best operating profit ever, as a result of increased revenues from advertising, increased price per newspaper and good cost controls. As from 1 November 2002, VG increased its price from NOK 9 to NOK 10 on weekdays. VG maintained its solid position as market leader. In July 2003 VG set a new circulation record of 419,998 weekday copies. In 2003, advertising revenues from the paper edition increased by 13 percent, to NOK 384 million. VG Nett developed in a positive direction in Revenues increased by 34 percent, whilst the operating profit was NOK 5.8 million (loss of NOK 5.4 million) was the first business year in which a profit was achieved for the year as a whole. This shows that the online newspaper is beginning to reap the benefits of its position as the leading online paper in terms of readers. In October, VG Nett became the first website in Norway having more than 2.5 million unique visitors during one month. The online newspaper s advertising revenues increased by 39 percent, roughly in line with market growth as a whole. With an operating profit (EBITA) in 2003 of SEK 12 million (loss of SEK 49 million), Svenska Dagbladet achieved its best operating profit since being acquired by Schibsted. The positive result was achieved in a market where the business conditions for advertising were poor. The is increasing its market share, and circulation is increasing in the Stockholm region. This region is the newspaper s priority market. During the autumn 2003, the large estate agents in

17 >> 13 THE BOARD OF DIRECTORS REPORT Stockholm completed the negotiations with the large newspapers regarding the use of advertising channels for real-estate advertisements. A non-exclusive agreement was signed with Metro. In 2003 SvD revenues from real-estate advertisements in the Stockholm region amounted to approx. SEK 100 million. Various measures will be implemented to compensate for the possible loss of advertising revenues, striving for a break even profit in Aftonbladet developed positively in 2003 in terms of both circulation and advertising was the best year in Aftonbladet s history from a financial point of view. Aftonbladet maintained its position as the Nordic region s largest Aftonbladet still largest in the Nordic region newspaper. Aftonbladet still has a strong position compared with Expressen/GT/ Kvällsposten, and its circulation was approx. 90,000 ahead of its competitor during Aftonbladet maintained its market share of 56 percent, and its circulation was at its highest for 27 years. According to IRM s prognosis, the evening newspapers advertising revenues increased by 11.9 percent in The corresponding increase for Aftonbladet was 13.2 percent (incl. Sportmagasinet.) In the autumn of 2003 Schibsted acquired, through Finnmer AB, the shares in the classified advertising service This acquisition strengthens and complements Schibsted s position within classified advertising services. In 4 th quarter of minutes (incl. France) reached breakeven for the first time. The Swiss business achieved a positive operating profit for the year. Revenues increased by 43 percent, while costs remained stable. The Spanish business increased advertising revenues by 46 percent in A new reader survey shows that 20 minutes, with million readers, is ahead of Metro, and is only beaten by Spain s largest newspaper El Pais. In France advertising revenues tripled in 2003 compared with the launch year A launch of 20minutes in Lille, Lyon and Marseille is planned during 1st quarter of Strong revenue growth from the newspapers Internet activities resulted in an operating profit of NOK 51 million for the online newspapers in 2003 (loss of NOK 6.7 million). Revenues increased by 44 percent. Growth was due to increased revenues in all the online newspapers, as well as the Group s acquisitions to strengthen its position in classified advertising services in Sweden. In 2003 FINN.no strengthened its position as Norway s decidedly leading online marketplace for real-estate, recruitment and cars. Operating profit (EBITA) for the Finn Group was NOK 43.6 million (NOK 26 million), which represents an operating margin of 32.3 percent. ESTONIA The activities in Estonia continued to show positive developments. Print media progressed well. New investments considerably improved the situation at the Group s printing plant, Kroonpress. This is expected to have a positive impact in The advertising market for Postimees was characterised by a price war and a weak market, whilst subscription revenues and readership numbers showed solid increases. Other print media in the Group are developing in line with the market. The second half of 2003 showed no signs of positive developments in the advertising market for electronic media. The advertising revenues of the TV channel Kanal 2 increased by EEK 28 million in 2003, and the channel reduced its loss considerably from Intensified competition resulted in large programming costs, and the channel was unable to deliver a profit for the year as a whole. TV, FILM & PUBLISHING Throughout 2003 the leading Nordic TV channels enhanced their programming with productions from the independent production sector, and there was high demand for the Metronome Group s programme concepts. Going into 2004, the order situation for the Metronome Group s production companies is good. Metronome Film & Television is the Nordic region s largest independent production company for TV programmes, drama series, feature films and commercials, with turnover twice as high as its nearest competitor. For the year, the Metronome Group s turnover increased by seven percent, to SEK 801 million. The operating profit (EBITA) at the end of 2003 was SEK 56 million (SEK 15 million). The order situation in the market for production of new commercials was unsatisfactory. For Sandrew Metronome, 2003 was characterised by good progress in the areas of film and video distribution. The 2003 operating profit was the highest in the company s history. The Group s distribution of feature films on video and DVD is going very well, and showed good progress compared with The Nordic video market grew by 12 percent in 2003, and Sandrew Metronome maintained its market share of approx. 20 percent. The DVD format grew by 60 percent in 2003, while the VHS format declined. The cinema business, particularly in Sweden, had a negative impact on Sandrew Metronome s result. Ticket sales were down 11 percent compared with Solutions for the Group s cinema business are under preparation in order to improve profitability and reduce risk. Morten Kongrød, previously a director in Schibsted s TV, Film & Publishing business area, was appointed as new CEO of Sandrew Metronome as of 1 March For TV 2, a strong first half of the year was followed by a slightly weaker than expected autumn. The competition on TV was strong throughout the Several companies with all time high results autumn, and the other commercial channels gained market shares at the expense of TV 2. Increased advertising revenues, a better financial result and a positive income from TV Norge contributed to the TV 2 Group increasing its profit after tax from NOK 166 million in 2002, to NOK 188 million in The operating profit (EBIT) was NOK 195 million (NOK 208 million). Figures from Mediebyråenes Interesseorganisasjon (MIO) show that the media agencies arranged advertising worth a total of NOK five billion in 2003, an increase of 4.9 percent over At the end of July 2003, TV 2 agreed to buy 34 percent of Kanal 24 through a private placement. TV 2 has an option to increase its shareholding to 51 percent. Through TV 2 s agreement, Schibsted s indirect share of interest in Kanal 24 increased from 18 percent to 23 percent, and will increase to 26 percent if TV 2 exercises its option. In 2003 the Publishing business area had an operating profit (EBITA) of NOK 35 million (NOK 34 million). The operating margin was 10.1 percent (10.1 percent). The operating revenues of Schibsted s publishing companies grew by 3 percent in 2003, to NOK 348 million. Several companies within the group delivered all time high results in Effective from 1 April 2004, Schibsted s Norwegian publishing companies will be merged into the company Schibsted-Forlagene AS. OTHER OPERATIONS Other operations had an operating profit in 2003 of NOK 22 million (loss of NOK 1 million). The improvement was due to increased royalty revenues for Schibsted Finans, and losses reduced to NOK 6 million (NOK 34 million) for Telecom. The positive effects were counteracted to a certain extent by reduced rental revenues for Schibsted Eiendom due to the sale of properties in The royalty revenues from VG to Schibsted

18 >> 14 THE BOARD OF DIRECTORS REPORT ASA and from Aftenposten to Schibsted Finans AS ceased 31 December FUTURE PROSPECTS In Norway the market for brand advertising shows a positive trend. Furthermore the market for vacancy advertising shows signs of a slight improvement, while a slight decline from the high level in 2003 is expected within the real-estate market. As a result of continuing declines in revenue at Aftenposten, extensive new measures are needed on the cost and revenue beyond current programme. At the same time, work will be performed in order to improve the operating margin significantly over the next two to three years. The measures taken will be determined by the product and readership strategy selected to strengthen Aftenposten s position in the reader market. The measures will be announced in conjunction with the publication of the 1st quarter of 2004 accounts. The measures may result in provisions being reflected in the 2004 financial accounts. In 2004 the casual sales newspapers are expected to maintain their strong positions, with stable, high circulations. The advertising market in Sweden is showing signs of a slight improvement, with the exception of the vacancy market, where an improvement is expected towards the end of the year or at the beginning of The growth within Internet advertising is expected to remain high in There are expectations related to the acquisition of the classified advertising service During the year, FINN renewed its agreement with Eiendomsmeglergruppen, which holds approx. 40 percent of the real-estate market in Norway, which implies that all of its real estate advertisements will be placed on for the next three years. The importance of having highly qualified personnel The prospects for Metronome Film & Television are considered to be good. The order situation for TV production is good for the 1st half of The significant growth within the DVD market is expected to continue in Per 3 March 2004, Schibsted increased its ownership in 20 Min Holding AG from 41 percent to app. 98 percent. Following these transactions, 20 Min Holding AG will own 100 percent of the Spanish operations, 50.5 percent of the Swiss operations, and 16 percent of the French operations. Schibsted currently owns 34 percent of the French operations directly, giving Schibsted a total control of 50 percent of the French operations. From takeover, this purchase will lead to a full consolidation of 20 Min Holding AG, and the operations in France will be pro rata consolidated (50 percent). In 2004, 20 minutes will continue to focus on profitability in existing operations. During 1st quarter of 2004 a launch of 20minutes in Lille, Lyon and Marseille is planned. In Spain and Switzerland there are expectations related to the positive readership figures, which should result in greater market shares and increased advertising prices. At the same time, the advertising markets are expected to improve slightly throughout In 2003 the Group further improved its financial flexibility, and it is well positioned for continued growth. Based on a review of the Group s strategy, growth is expected to be achieved both organically and from acquisitions. The Group s strong position and competitive advantage will make the basis for further growth, and acquisitions will complement and strengthen existing positions. The growth strategy and new projects will be assessed against the Group s financial targets. WORKING ENVIRONMENT The Schibsted Group had 4,690 employees at year-end, compared with 4,760 at the end of ,560 worked outside Norway. Sickness absence made approx. six percent of the Group's total working hours. At the Group s printing plant in Nydalen, measures have been implemented to reduce the high sickness absence. Absence has been reduced by 2.2 percent, but is still 17 percent. Further measures are implemented in order to reduce absence to a normal level. Of the companies in the Group, it is particularly the operations at the printing companies that involve a certain risk of injury. At Schibsted Trykk nine workplace injuries resulting in absence were recorded during These were primarily minor cuts and bruises. At Tidningstryckarna no workplace injuries resulting in absence were recorded, while at Kroonpress two minor accidents resulting in personal injuries were recorded. No serious accidents were recorded at the printing plants. The Schibsted Group stresses the importance of having highly qualified personnel and therefore offers competitive terms of employment as well as scope for development. The working environment is considered to be good. The Board of Directors wishes to thank all employees for their untiring efforts throughout the year and for their ability and willingness to participate in restructuring, resulting in more secure jobs and improved profitability in the periods to come. 43 percent foreign investors EXTERNAL ENVIRONMENT The newspapers are produced digitally up to the point where they are printed, which means that the production process has a very limited impact on the environment. Schibsted owns three newspaper printing plants: Schibsted Trykk in Oslo, Tidningstryckarna in Stockholm and Kroonpress in Tartu, Estonia. A newspaper printing plant is a relatively environmentally neutral industrial operation. The production processes that include the use of polluting substances take place within closed systems. Most waste is sorted at source. At Schibsted Trykk, 98 percent of all waste is sorted at source. Agreements with approved transport companies ensure that special waste is transported safely. Normal operations do not involve any danger of discharges to the ground, atmosphere or water from the printing plants. Environmental work is an important area for the printing plants. Trough a cleaning process, Schibsted Trykk has reduced the amount of waste related to humidity by 85 percent to 38 tonnes. Tidningstryckarna has reduced the use of detergents by 90 percent. Kroonpress possesses a ISO certification for environmental processing. In total the three printing plants used 110,000 tonnes of paper, 2,170 tonnes of printing ink and approx. 35 GWh of electric power in This is about the same level as in The Group s newspaper companies in Norway and Sweden arrange for unsold newspapers to be returned and sold for recycling. The Group s other operations hardly pollute the environment. EQUAL OPPORTUNITIES Schibsted relies on talent, experience and competent managers and employees. It is essential to the Group s continued success that women are given the same opportunities for development as men. This is an important part of the Group s social responsibility and an important basis for the group s continued commercial success. Several of the Group s subsidiaries are working actively at ensuring that men and women receive equal pay, equal access to management jobs and equal conditions in connection with recruitment and development activities. VG s trainee programme for journalists, which was established in 2003, is one of many examples. 30 percent of Aftenposten s management positions are currently occupied by

19 >> 15 THE BOARD OF DIRECTORS REPORT women, and the newspaper is working at increasing this proportion. The Group is working systematically at ensuring gender balance, through measures such as the development programmes run by the Group itself and Schibsted s trainee programme. Certain areas, for example the printing operations, have traditionally been very male-dominated. OWNERSHIP STRUCTURE AND SHAREHOLDER POLICY At the beginning of 2003, the Schibsted share was traded at NOK At the beginning of 2004 the share price was NOK , an increase of 58 percent. During the same period the Oslo Stock Exchange Benchmark Index (OSEBX) increased by approx. 48 percent. In 2003, an average of approx. 147,000 shares were traded daily, an increase of 29 percent from 2002, and at the same level as in The Group s ownership structure changed slightly during The proportion of shares held by foreign investors increased to 43 percent (39 percent). The number of shareholders was 5,544 at the end of 2003, compared with 5,507 the previous year. Schibsted's largest shareholder, Tinius Nagell-Erichsen, controls 26.1percent of the Schibsted shares through Blommenholm Industrier AS. SCHIBSTED ASA Schibsted ASA is the parent company within the Schibsted Group. Schibsted ASA s revenues consist mainly of royalties from Verdens Gang AS, while operating expenses relate to the ongoing operations of the Group administration loss for Schibsted ASA amounted to NOK 45 million, while profit before taxes amounted to NOK 269 million. In 2003, the average number of employees was 58, of whom 15 were trainees on placements in different Group companies. The Group Chief Executive Officer is Schibsted ASA s managing director. The working environment is good, and the company hardly pollutes the environment. ALLOCATION OF PROFIT FOR THE YEAR FOR SCHIBSTED ASA The Board of Directors of Schibsted ASA proposes the following allocation of the profit for the year (NOK million): Profit for the year Proposed allocation: Allocated dividend Transferred to other equity... 2 Group contributions to subsidiaries total NOK 187 million. At 31 December 2003, the nonrestricted equity amounted to NOK 950 million. DIVIDEND As Schibsted was listed in 1992, the Board stated in relation to dividend policy that: "The Board s objective is to maintain a stable, high dividend, which at least corresponds to the distribution of the last three years. Schibsted AS s dividend must be competitive compared with the dividends of other companies on the Oslo Stock Exchange. In periods of intensive investment, it is the company s objective that the dividend from Schibsted AS will remain at a steady, high level for shareholders." Based on the improved profitability achieved, it is the opinion of shareholders representatives of the Board that there is room for a significant increase in Schibsted s dividend level. On the other hand it is important to maintain the Group s financial flexibility. A large one-off dividend, or going actively out in the market with an offer to buy shares, is therefore not recommended. A significant increase in dividend, combined with the possibility for repurchase of own shares, is considered a suitable long-term way of maintaining a capital structure in line with the financial goals. When determining the dividend, an increase has to be seen upon the Group s strategy and growth potential, while, at the same time, maintaining longterm financial flexibility. Due to the changes within the media industry, interesting strategic growth opportunities are expected in Schibsted s ownership structure also requires long-term stability, in case it is not possible to raise new equity if the financial situation should require it. On the basis of the Group s financial position, and after a comparison of Schibsted s dividend ratio with other listed companies in Norway, and other media companies in Europe, the Board will propose for the Annual Shareholder Meeting that the dividend is set at NOK 3.00 per share for Oslo, 25 March 2004 Schibsted ASA s Board of Directors Ole Jacob Sunde Chairman of the Board Tinius Nagell-Erichsen Deputy Chaiman of the Board Alexandra Bech Gjørv Lars M. Berg Berit Bjerg Monica Caneman Hilde Harbo Cato A. Holmsen Håkon Kjernsmo Gunnar Nordby Jan Reinås Kjell Aamot President & CEO

20 >> 16 CORPORATE GOVERNANCE IN SCHIBSTED Schibsted ASA is established with one class of shares, with equal rights attached to each share. With regard to Schibsted s publishing responsibility and role in society as a media company, Schibsted s impartiality and integrity are guaranteed by means of restrictions in ownership and voting rights in the company s regulations. Changes in company regulations require approval from more than 75 percent of the share capital represented at the Annual General Meeting. The same applies to resolutions on the transfer of publication rights in Aftenposten and VG. The Group s publishing companies also have provisions in their articles of association to safeguard their editorial freedom. Any shareholder owning at least 25 percent of the shares in the company are entitled to designate a board member directly. Blommenholm Industrier AS, which is owned by Tinius Nagell- Erichsen, controls 26.1 percent of the shares in Schibsted ASA. These shares will be transferred to the Tinius Trust at a time decided by Tinius Nagell- Erichsen, or in the event of his death. The Tinius Trust is described in more detail on page 21 of the Annual Report. CENTRAL FUNCTIONS The company is organised as a traditional limited company, with the General Meeting as the supreme authority, a Board of Directors, an external Auditor and a Chief Executive Office reporting to the Board of Directors. Schibsted is exempted from the rules on establishment of a corporate assembly. BOARD OF DIRECTORS The Group s Board of Directors currently consists of 11 members. Seven are elected by the shareholders and four are elected by and among the employees. In accordance with protocols from 1988/89, one of the employees seats on the board is reserved for a VG employee. In addition, VG has a permanent deputy member. Three of the employees seats on the board are reserved for Aftenposten employees. In 2003, the Board s work focused on development of our core operations, and rise in profitability. During the strategy process last autumn, the Board considered potential new growth and expansion within the Group. Ahead of the budget process, the Board is involved in a largescale strategy programme, in which the status and objectives of the Group s different business areas are evaluated and acted upon. The Group s main longterm vision, goals and strategies are also being reviewed. As a management tool, the Board receives monthly financial reporting of the main figures for the Group, the status of commercial situation, financial market information and a status report for each business area. The Board seeks to obtain a detailed presentation of one of the Group s central companies at each board meeting. Furthermore, the Board seeks to regularly combine its meetings with a visit to one of the Group s subsidiaries outside of Oslo. The Board makes regular evaluations of the factors which affect the work and working methods of the Board. The size and composition of the Board have also been discussed, including the current representation arrangements for employees. The Board of Schibsted ASA believes that it is of positive benefit to its work that the Board consists of qualified members representing a wide range of experience, age, gender and education. On pages 10 of the Annual Report, there is a more detailed presentation of the Board members, which lists their experience and expertise. Lars M. Berg resigned from the Board following his appointment as Group President of the Swedish Enero Group. Deputy member Christian Ringnes will represent him until the Annual General Meeting on 6 May To strengthen and best exploit the Board members expertise and experience in the Schibsted Group s operations, some of them also have directorships in the Group s subsidiaries. Among the shareholder-elected Board members, this applies to Ole Jacob Sunde (Aftonbladet Hierta AB), Cato A. Holmsen (20 Min Holding AG and Aftenposten AS), Tinius Nagell- Erichsen (Aftenposten AS), Jan Reinås (Verdens Gang AS) and Monica Caneman (Svenska Dagbladet). Some Board members have, directly or indirectly, consulting functions or business relationships with the Group. The skills of Lars M. Berg and Monica Caneman have been utilised at operational level through consulting agreements, for fixed annual fees of NOK 150,000 and NOK 60,000 respectively. Jan Reinås was Group President of Norske Skog up to the end of As a paper producer, Norske Skog is a central supplier to the Schibsted Group. The Board of Blommenholm Industrier AS, Schibsted s largest shareholder, comprises

21 >> 17 CORPORATE GOVERNANCE IN SCHIBSTED SCHIBSTED S GROUP MANAGEMENT: JAN ERIK KNARBAKK, SVERRE MUNCK, TROND BERGER, KJELL AAMOT, BIRGER MAGNUS Tinius Nagell-Erichsen (Chairman), Ole Jacob Sunde and Attorney John A. Rein. The latter is the 2nd deputy member for the shareholder-elected Board members. John A. Rein provides solicitor s services to Blommenholm Industrier AS/Tinius Nagell-Erichsen through the law firm Wikborg, Rein & Co. Formuesforvaltning ASA, of which Ole Jacob Sunde is a major shareholder, has a trust agreement with Blommenholm Industrier AS/Tinius Nagell- Erichsen. Blommenholm Industrier AS has invested in FSN Capital Fond I (1.75 percent share). Group Board member Cato A. Holmsen is Executive Chairman of the fund s management company FSN Capital Partners AS. Some Group Board members / deputies are board members in the Tinius Trust. The Board of the Tinius Trust currently comprises Tinius Nagell- Erichsen (Chairman), Ole Jacob Sunde, John A. Rein and editor Per Egil Hegge. ELECTION COMMITTEE The company s Election Committee is elected by the Annual General Meeting for a two-year term. The present Election Committee was elected by the Annual General Meeting in 2002 and is therefore up for election at this year s Annual General Meeting on 6 May The present Election Committee comprises Supreme Court Attorney Lars A. Christensen (Chairman), Grete Faremo and Tinius Nagell-Erichsen. Chief Executive Officer Kjell Aamot is deputy member of the Election Committee. Lars A. Christensen has been Chairman for a number of years and also chairs Schibsted s General Meetings. He is a partner in the law firm Wikborg, Rein & Co, which has other connections with the Company s principal shareholder. Grete Faremo has no other positions or other form of connection to the Group. The Election Committee has been granted a more active role in Schibsted the last years. At last year s Annual General Meeting, the Election Committee gave its first verbal report on its work. This year, a written report from the Committee is also included on page 20 of the Annual Report. The Election Committee proposes candidates for the shareholder-elected board seats and the three shareholder-elected deputy members. As far as possible, the Election Committee s proposals for Board members and Deputy Board members are made public in the Notice of Annual General Meeting. The Election Committee also proposes Board remuneration. The Annual General Meeting defines the Board remuneration in advance. Last year s Annual General Meeting, set the Board remuneration at NOK 120,000 per member, and also introduced a fixed and variable percentage. The fixed remuneration represents NOK 90,000 of the total, while the variable proportion is distributed across the board meetings and paid out on the basis of attendance. Fixed remuneration to deputy members was NOK 5,000 for the period, in addition to a fee of NOK 5,000 per meeting. Remuneration to the Chairman of the Board in the same period was NOK 400,000, with the fixed remuneration amounting to NOK 300,000. All Board members have the expense of a subscription to Aftenposten covered. Some Board members have also had special expenses connected with their Board assignments in Schibsted covered. The Election Committee will propose to the Annual General Meeting that foreign living Board members shall be compensated for the extra travelling time to the Board meetings. Per today, this will apply for the Swedish Board member Monica Caneman, and the Election Committee will propose that her salary is increased from NOK to NOK 180,000. There will be no proposal to change other Board remuneration. ESTABLISHMENT OF A EUROPEAN WORKS COUNCIL THE GROUP COUNCIL IN SCHIBSTED The Group management team and negotiating committee, consisting of employees representatives in the Group, have reached an agreement, which involves the establishment of what we have called the Group Council in Schibsted. The Group Council has been set up according to the legal model for the Establishment of European Works Councils. The agreement specifies that the purpose of the Group Council is to promote development, motivation, joint responsibility and mutual trust between the management team and employees. The Council must ensure active cooperation and represent a forum for information, discussion and dialogue in the Group. The agreement is

22 >> 18 CORPORATE GOVERNANCE IN SCHIBSTED The Board of Directors Ole Jacob Sunde Chairman of the Board Schibsted ASA Kjell Aamot President & CEO Newspapers TV, Film & Publishing Economy/Finace Strategic projects and Business Development Sverre Munck Executive Vice President Birger Magnus Executive Vice President Jan Erik Knarbakk Executive Vice President Trond Berger Executive Vice President a supplement to the employees representation in their own company. It also specifies that the parties share a common goal to make the Group Council a centre of excellence in the Group. The Group Council will help to strengthen employees group identity and act as a forum for transfer and development of skills across national boundaries and employees own trade unions, organisations and companies. The employees elect 30 representatives to the Group Council. The representatives will be selected from 23 constituencies, which are defined according to union groupings and business areas in the Group. The Group Council will also include six representatives from the Group management team. The first Group Council election will be decided before 1 May this year, and the aim is to hold the first Council meeting this autumn. AUDITING Ernst & Young is Schibsted ASA s auditor. The Company s auditor is present when the consolidated accounts are presented to the Board of Directors. As stated on page 66 of the Annual Report, the Group s total auditors fees to Ernst & Young in 2003 amounted to NOK 3,339,000, of which NOK 550,000 related to Schibsted ASA. Other services from Ernst & Young are specially invoiced and in 2003 these amounted to NOK 1,186,000 for the Group, of which NOK 191,000 related to Schibsted ASA. The other assistance is mainly in connection with questions relating to taxation, and required auditor s confirmations in connection with corporate changes in the Group (capital injections, mergers, demergers etc). Some subsidiaries use other auditing companies. Auditors fees to these companies amounted to NOK 3,938,000 in 2003, while total fees for other services amounted to NOK 2,065,000. It is the Board s opinion that consulting services carried out by Ernst & Young for the Group are mainly connected with the auditing assignments and do not influence the auditor s impartiality. Please refer to Note 8 in the annual accounts (page 66 of the Annual Report), in which the type and scope of the services are described in more detail. MANAGEMENT SALARIES The Chairman of the Board and the Vice Chairman constitute the Board s compensation committee, which has full authority from the Board to negotiate the Chief Executive s terms. The Board is briefed on the result of these negotiations. The CEO s fixed salary has increased by approx. 3.5 percent in recent years. Like the Chief Executive Officer, the Executive Vice Presidents and Managing Directors of the individual companies are remunerated mainly from long-term profit creation. The majority consists of a fixed salary, which is adjusted in line with the general market development. There is additional remuneration in the form of a bonus on achieved profit targets, as well as a share option scheme (see page 65 of the Annual Report). On the basis of the salary framework discussed with the Chairman of the Board, the Chief Executive Officer negotiates salary terms with the Executive Vice Presidents. A corresponding model is applied in the Group s subsidiaries. Key employees in Group management and the Group s subsidiaries may hold paid and unpaid directorships in the Group s companies.

23 >> 19 SOCIAL RESPONSIBILITY For a media company such as Schibsted, trust is a keyword. It is essential to have mutual trust with readers, viewers and listeners, as well as employees, owners and society at large. One does not gain trust without taking responsibility. For Schibsted, it is of vital importance to be ethical and responsible. Ownership is much more significant to a newspaper than a normal industrial company. These were the opening words of Tinius Nagell-Erichsen when he presented his report on the Tinius Trust in May 1996, which shows what special social responsibility is involved in running newspapers and other media. Media owners have a special responsibility. Schibsted builds on the publishing tradition which gives editorial freedom to newspapers and other media, and emphasises the requirement for editorial impartiality, reliability and quality. This is an essential part of the Group s 165 year old tradition. EDITORIAL CORPORATE GOVERNANCE Where newspapers are concerned, operations are guided by editorial integrity, independence, trustworthiness and quality. Editorial work must be carried out in compliance with legislation and ethical rules for media in the individual countries. In Norway, this means in compliance with Norwegian legislation and the principles the Norwegian Press Association has highlighted in its Code of Ethics of the Norwegian Press. In addition, each newspaper defines internal rules to ensure editorial integrity, source protection and compliance with the press ethics standard. This means that each editor has personal and full responsibility for editorial content, in accordance with the Ethical guidelines for Norwegian Editors. This also applies to advertisements. The editor reports to the company board, but is in full charge of editorial matters and operates independently based upon the company s basic articles of association and charter. Editorial activities are carried out in accordance with the adopted organisation chart, with delegated and clear responsibility in all areas, 24 hours a day. The work is coordinated through a fixed meetings structure, adapted to the individual editorial department. This is to guarantee quality and compliance. When Schibsted s principal shareholder Tinius Nagell-Erichsen founded the Tinius Trust, his main aim was to make sure that Schibsted s newspapers to be free and indipendent editorial bodies also in the future.in his report, he affirmed that establishing of the Trust as the future guardian of the controlling block of shares in Schibsted was motivated by the belief that a newspaper is not a standard product, but rather a forum for essential social information and debate, on which our democratic society depends. The past 15 years have seen Schibsted change from being a traditional, family-owned newspaper operation, with VG and Aftenposten as its central publications, to become an international, listed media group with media operations in every sense of the word. Schibsted currently has a variety of media channels which provide the society with editorial content in different arenas. When the Tinius Trust was set up, it was therefore important for Schibsted s principal shareholder to include these significant new media channels in the basic media ownership requirements. It was emphasised that the requirements for editorial integrity, independence, trustworthiness and quality in newspapers must also be followed by other media and publications in operations owned by the Schibsted Group. The Group Board and management team fully support these important principles. At present, major initiatives are underway in our leading companies to clarify what is called editorial corporate governance. This year, for the first time, the annual reports of VG, Aftenposten, Aftonbladet, Svenska Dagbladet and Scanpix will include an editor s report on how editorial operations are run and managed.the aim is that all Schibsted s media channels which communicate editorial content will clarify the internal management and control mechanisms that have been developed by the editor and on which the editorial work in each company is based. EQUALITY Schibsted thrives on skilful and talented managers and employees. For this reason, it is essential for the Group to ensure that men and women have equal development opportunities. This is an important part of the Group s social responsibility and the basis for further success. Active efforts are underway to secure equal conditions for men and women, including equal access to managerial posts and equal conditions for recruitment and development activities in a number of the Group s companies. Several companies have their own equality plans and many are conducting surveys from an equality perspective.

24 >> 20 SOCIAL RESPONSIBILITY VG s trainee programme for new journalists, which was launched in 2003, is one of many examples of how Schibsted s subsidiaries are actively taking steps to ensure equality issue. The aim of the programme is to recruit young women with a journalistic to positions in male-dominated editorial environments, such as sport and news. The programme was advertised in autumn 2003 and attracted criticism from the Equal Opportunities Board, which argued that VG was discriminating men. The Board called for a change to the wording and VG acceded to this request. Four female trainees were selected for the programme. Group management also works systematically to ensure a balance between men and women, particularly in training programmes which the Group arranges. The proportion of women in these programmes is as follows: Schibsted Management Trainee Programme established in percent. Schibsted Middle Management Programme established in percent Schibsted Management Programme established in percent However, much remains to be done before Schibsted can be considered to have achieved full equality. This particularly applies to women s representation in managerial positions. At present, the proportion of women on Schibsted s Board is 36 percent. WORKING ENVIRONMENT Schibsted aspires to ensure a high level of satisfaction in its workplaces, as well as good cooperation among colleagues, and between management and other employees. The working environment committees in the individual companies deal with working environment issues. The company health services are used to conduct working environment surveys, which form the basis for improvements. Sickness absence in the Group is approximately six percent and has remained stable in recent years. Some companies, such as Schibsted Trykk, have a particularly high level of sickness absence. Measures already carried out have reduced this by 2.2 percent, but it still remains at the high level of 17 percent. Additional measures are being implemented. Injuries in the Group s companies are at a low level. Operations in the printing companies are particularly vulnerable, but active HES work is carried out, and no accidents were recorded at any of the printing plants in A total of 11 minor accidents which were recorded in 2003, resulted in slight personal injury. Major structural changes in the readership and advertising market are forcing subscription newspapers to undergo tough reorganisation processes. It is Schibsted s responsibility to ensure that the process is managed in a professional way, with respect for those involved and in close cooperation with the employees unions. The Group believes that it has managed this successfully in THE EXTERNAL ENVIRONMENT Schibsted s companies carry out their operations in compliance with current environmental regulations. Newspaper production is digital until it reaches the printing plant. Basically, printing is a clean industry. Where contaminated materials are used, the processes are carried out in sealed systems. Separation at source has been introduced for most waste. For example, Schibsted Trykk separates 98 percent of its waste at source. Special waste is collected by approved transporters. The printing plants have implemented the following projects aimed at environmental improvements: Schibsted Trykk 85 percent reduction in waste linked to humidity. Tidningstryckarna 90 percent reduction in use of detergents to wash rubber blankets. Use of environmentally marked electricity Kroonpress ISO certification for environmental processing (ISO 14001/1996). Use of printing paper, printing ink and electrical energy is on the same level as Schibsted s printing plants deal with environmental conditions in their own separate reports. For example, Schibsted Trykk, the Group s only printing company in Norway, compiles an annual environmental report.the newspaper companies in Norway and Sweden arrange collection of unsold newspapers for recycling. THE ELECTION COMMITTEE S REPORT Board recruitment has been and will continue to be the main duty of the Election Committee. The Committee works on this all the time, as shareholder-elected Board members and deputy members are up for election every year. This year, four of the seven shareholder-elected Board members and the three shareholderelected deputies are up for election. It has been important for the Election Committee to ensure continuous strengthening and upgrading of the Board s expertise and experience, and to arrange Board recruitment which ensures that directorships are also held by impartial Board members who are not taking care of special interests through their work on the Board. The Corporate Governance section of the Annual Report contains information about the Board members business relationships with shareholders or other parties (p. 17). Regarding the evaluation of the Board members independency, the Election Committee would like to inform that the Chairman of the Board, Ole Jacob Sunde and the 2nd deputy, John A Rein, are both board members of the Tinius Trust, which was established by Tinius Nagell-Erichsen. The only voting share in Blommenholm Industrier AS will be transferred to the Tinius Trust after his death, or when Tinius Nagell-Erichsen so decides. The Election Committee considers the Board s other shareholder-elected members and deputy members to be independent, i.e. that they do not have a special connection to any groups of shareholder. The Election Committee has also evaluated the Company s practice of giving Board members directorships in subsidiaries. The reasoning behind this, both from Board and management perspective, has been to ensure that the Group Board as a body possesses thorough knowledge of the Company s key operations, so that their experience from their Board work in these companies acts as a resource when central topics are being discussed at Group Board level. The Election Committee supports the Board and management team in these views and does not consider their directorships in subsidiaries to affect their impartiality as Group Board members. Last year, the Board stated that it is of positive benefit to its work if it consists of qualified members representing a wide range of experience, age, gender and education. In its deliberations, the Election Committee has among others, emphasised the importance of strengthening the female recruitment base to the Board. The Election Committee has also focused on strengthening the Board in terms of experience and non-norwegian background. Large, important parts of the Group s operations and markets are located outside Norway, primarily in Sweden. The Election Committee believes that Board recruitment of recent years has succeeded in sharpening and widening competence among the shareholder- elected Board members. The Election Committee has received a report from the Board, which provides a briefing on the composition and work of the Board in 2003.

25 >> 21 THE TINIUS TRUST The Tinius Trust was founded by Schibsted s principal owner, Tinius Nagell-Erichsen, in order to create the security to guarantee the future freedom and independence of Schibsted s newspapers and other media. Tinius Nagell-Erichsen set up the Trust by deed of gift on 8 May 1996 and it has a capital base of NOK 10 million. On Tinius Nagell-Erichsen s death or at a time decided by him, the only voting share in Blommenholm Industrier AS will be transferred to the Trust. This company owns 26.1 percent of the shares in Schibsted ASA and is its largest shareholder. Changes to Schibsted ASA s articles of association require a three-quarters majority, which means that no shareholder can own or vote for more than 30 percent of the shares. Schibsted ASA s articles of association also ensure that important resolutions in the Group s subsidiaries require a three-quarters majority at the Annual General Meeting of Schibsted ASA. As long as the 26.1 shareholding is held together as single unit, these provisions have considerable influence over the ownership of Schibsted. The strength of this block of shares is so great that any takeover would be very difficult. At the 1996 Schibsted Annual General Meeting, Tinius Nagell- Erichsen spoke about why he had founded the Trust. Ownership is much more significant to a newspaper than a normal industrial company. A newspaper is not a standard product, but rather a forum for essential social information and debate, on which our democratic society rests. In addition to its long-term nature, newspaper ownership should openly pledge itself to the values which the newspaper represents. At times it may be called upon to defend these values, so that the newspaper can retain its freedom and independence. This is when it is an advantage to own a majority. The Tinius Trust s articles of association specify that it shall work to ensure that the Schibsted Group continues as a media group, run in accordance with the same editorial and business guidelines as at present. The principles of editorial freedom, credibility and quality shall be guiding for all media and publishing businesses owned by the Schibsted Group. The Trust shall also work for the long-term, sound, financial development of the Schibsted Group. The Board of the Trust comprises Tinius Nagell-Erichsen, Per Egil Hegge, John A. Rein and Ole Jacob Sunde. After Tinius Nagell-Erichsen s death, the Board will consist of three members. Each member appoints his own successor. TINIUS NAGELL- ERICHSEN

26 >> 22 The newspaper is dead. Long live the newspaper. The 20 minutes free newspaper concept has taken just four years to grow to the position of seventh largest newspaper brand in Europe. The target group is young urbanites who use the city a lot. Many of the newspaper s readers are people who never previously read a paper. 20 minutes is currently published in 11 cities in three countries: Zürich, Bern, Basel, Madrid, Barcelona, Seville, Saragossa, Paris, Marseille, Lille and Lyon. In 1991, 84 percent of young Norwegian people between the ages of 16 and 24 read at least one newspaper every day. The corresponding figure in 2002 was 62 percent. The loss of young readers is a significant feature of the media market. At the same time, the newspaper as a medium has been far more robust than many had expected. It has also emerged that newspapers as brands can make a great impact in the new media. Aftonbladet is the largest newspaper in the Nordic region, with a circulation of 448,300, the highest in 27 years. At the same time, aftonbladet.se is clearly the leading online newspaper in Sweden. VG continues to confirm its position as Norway s largest newspaper. The paper set a new circulation record with around 420,000 copies in July, but experienced a small decline for the full year. vg.no is the leading online newspaper in Norway. 26 August saw the first appearance of Aftenposten's morning edition in a combined broadsheet and tabloid format. A market survey two months after the change shows that 45 percent of young readers and 42 percent of women think that the newspaper has improved. 35 percent of the young people think that the newspaper is now more inviting to read.

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29 >> 25 Can also be used as a phone. Over 90 percent of all secondary students have a mobile. They are using their phones ever more, but relatively less for chatting. What was once a wireless telephone is now an information medium, which is developing at a furious pace. SMS, MMS, WAP, UMTS new abbreviations are lining up, and herald the growth of a new channel which is already giving the Internet a run for its money in several areas. Schibsted has a presence in this channel, both as a content provider and as a developer of new services. Schibsted Telecom Schibsted Telecom supplies mobile services in Norway, Sweden, Denmark, Estonia, Latvia and Lithuania. The Company has two business areas: ASP delivers mobile infrastructure and applications to media companies, terminal producers and operators, Inpoc is Schibsted s own mobile brand for end users. The Company increased its turnover by 122 percent in 2003 and is constantly developing new services based on state-of-the-art technology and the needs of mobile people. Inpoc is Schibsted s own brand for mobile entertainment services and communication. The Company has over 600,000 registered members in Norway and Sweden and reaches mobile young people via the Internet, print, WAP portals and SMS. VG is one of several Schibsted newspaper that has developed its own online version for WAP portals. It is an ideal platform for new communication, mainly because it can be easily personalised. Users can choose what type of news they prefer. Some 100,000 unique users take advantage of the service every month. Traffic is increasing dramatically and its pattern is the reverse of Internet traffic. When the traffic is quiet on the Internet, it increases on the mobile. The peak time of the week is on Sunday evening, when many people are travelling.

30 >> 26 Which did you like Metronome Film & Televisjon comprises the many TV and film production companies which are controlled by Schibsted, and is the Norwegian leader in its genre. The Company s productions include titles such as Big Brother, Hotell Cæsar, Pop Stars, Alla mot en, Jeopardy!, När & Fjärran and Sigurds Verden. Sandrew Metronome is a leading Nordic company in the purchase and distribution of films for cinema, video, DVD and TV. The Company also has major cinema operations in Sweden, Denmark and Finland. Sandrew Metronome is involved in Scandinavian film productions as a producer and investor, and collaborates extensively with international producers, such as Warner Bros. best the book or the film? New media and major changes in user habits are all very well, but TV, films, books and magazines are still holding their own as strong media, even among the young. To maintain this position will require continued capacity for innovation, both in terms of content, marketing and distribution. Schibsted is an important Scandinavian player in TV, film and publishing. It is our clear intention to be involved in shaping this market in the coming years. Schibsted-Forlagene is the new umbrella organisation for Schibsted s publishing companies. The main companies in the organisation are Chr. Schibsteds Forlag, Schibsted Internasjonale Bøker, Bladkompaniet and Svenska Förlaget. Bladkompaniet is a leading publisher of paperbacks and comics in Norway. Schibsted also publishes the interior design magazine Maison, the fashion magazine Tique and the financial journal Dine Penger. Schibsted owns percent of TV2, Norway s largest commercial TV channel.

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33 >> 29 Changing car? Changing job? Log on here. In just a few years, the Internet has grown into a giant marketplace for the purchase and sale of goods, property and situations vacant. Everything indicates that the trend will continue with undiminished tempo. There is more on offer, the functionality is improving and new user groups are getting used to this medium. For Schibsted, this represents both a challenge and potential. For several of our newspapers, it has meant a decline in advertising volumes. At the same time, the market portal FINN.no has helped Schibsted to become a leading Scandinavian player in online classified advertising. FINN.no is the largest marketplace for online classified advertising in Norway and is continuously strengthening its position. This venture is an important element in Schibsted s efforts to exploit changes in the advertising market. An important feature of FINN.no is the marketplace which is at the disposal of the Schibsted-associated newspapers. The company FinnTech develops and markets the technological side of FINN.no as a separate product. In 2003, Fish4, the UK s largest online classified advertising player, bought a stake in FINNTech and will in future use its technical platform. Behind Fish4 are five of the UK s largest regional media groups which together account for 80 percent of the UK s regional newspaper market and publish 636 newspapers In 2003, Schibsted purchased the Swedish classified service through Finnmer AB. Blocket is the leader in online private car trade and retail and wholesale in Sweden. Together with Finnmer.se, Schibsted controls leading websites for classified commerce in Sweden.

34 >> 30 NEWSPAPERS 2003 was an historic year for Schibsted s newspapers. Svenska Dagbladet, Aftonbladet and VG delivered their best-ever results. The free newspaper 20 minutter achieved profitability for the first time and the online newspapers began to report positive figures. BIRGER MAGNUS EXECUTIVE VICE PRESIDENT NEWSPAPERS Newspapers >>p.31 Aftenposten >>p.32 avis1, >>p.33verdens Gang >>p.34 Aftonbladet >>p.35 Svenska Dagbladet >>p minutes >>p.37 Schibsted Trykk >>p.38 Tidningstryckarna, Scanpix Scandinavia >>p.39 Estonia, Kanal 2 Svenska Dagbladet continues to impress by delivering constantly improved results, this time giving us our first profit in nine years. The difficult combination of streamlining operations and product development has been managed particularly well. This culminated in record profits, a further increase in circulation, and the icing on the cake the Stora Journalistpriset journalism award. The newspaper faces a challenge in the property advertising market in Aftonbladet produced impressive results and circulation figures. The results were the best ever in the 173-year history of the newspaper, and the circulation was the highest in 27 years. The news-paper is confirming its position as the largest newspaper in the Nordic region and continues to dominate the Internet. VG also reported an impressive operating profit, with an operating margin of over 20 percent, even though there has been a decline in circulation. The readership is still increasing. VG is daily read by 36.6 percent of the Norwegian population. Aftenposten, which moved from Akersgaten into contemporary, efficient premises at Oslo Central Station during the year, has experienced a decline in the job market advertising. The change in format, with a tabloid section of the morning edition, is one example of the large-scale product development and streamlining measures, which will be developed further during the year. The profitability of the free newspaper concept 20 minutes underlines its raison d être. The newspaper is now the sixth-largest in Europe. The free newspaper remains a priority growth area for Schibsted and is also a key part of the Group s internationalisation. In March 2004, Schibsted signed an agreement with Apax Partners and a group of Swiss investors, whereby Schibsted increased its shareholding in 20 Min. Holding AG from 41 percent to 98 percent. The acquisition represents a strategic investment in two of Europe s largest advertising markets, France and Spain. INTERNET LEADER In 2003, Schibsted confirmed its position as the leading newspaper company in Scandinavia. Through the newspapers, our position on the Internet has also continued to develop. Losses have been turned into profits, and aftonbladet.se and vg.no are the top online newspapers in Sweden and Norway. Aftonbladet dominates the Swedish media market, and is as big as all the other news-media players combined. FINN.no has continued to strengthen its position as Norway s biggest marketplace for online classified advertising, experiencing a sharp increase in sales and the number of unique users. FinnTech, the company which develops industry-standard technology for this concept, is attracting considerable international interest. In 2003, Finnmer acquired the Swedish classified advertising portal Blocket.se, thus increasing its potential by being able to benefit from the large traffic at aftonbladet.se. COMPETENCE DEVELOPMENT The media world is undergoing major restructuring, with changes taking place more frequently and rapidly than before. As a leading operator in such a market, it is important for Schibsted to ensure competence development and organisational renewal. For this reason, Schibsted raised the priority of this area in By using each other's knowledge, the Schibsted companies can increase their competence and prepare to meet changes in market conditions. This takes place in projects in branding, advertising sales and measures to boost the efficiency of operations. For a group which lives by experience, talent and expert leadership, there will also be increased focus on recruitment, management development and upgrading of skills. ONLINE NEWSPAPERS (TOTAL) Schibsted s online newspapers Operating result (NOK million) Advertising revenues Other revenues Operating revenues Operating expenses 1) (301) (241) Operating profit (loss) (EBITA) 51 (4) The figures are also included in the individual newspaper s results 1) Includes all costs except editorial content

35 >> 31 NEWSPAPERS NEWSPAPERS OPERATING RESULT (NOK million) Subscription revenues Single-copy sales revenues Advertising revenues Other revenues Operating revenues Operating expenses (5 883) (5 608) Operating profit (EBITA) GW and other revenues and expenses (41) (95) Operating profit (loss) Income from associated companies (31) (123) Operating margin (EBITA) (%) Exchange rates SEK/NOK EUR/NOK Romerike Mediadistribution (33.3 %) Fellesdistribusjon Østfold (50 %) Mediapost (33.3 %) Aftenposten Distribution Buskerud Distribusjon (9,9 %) Distribution Innovation (60 %) Sam- Distribusjon (17 %) AFTENPOSTEN DISTRIBUTION ORGANISATION AFTENPOSTEN Aftenposten Group Operating result (NOK million) Circulation revenues 1) Advertising revenues Other revenues Operating revenues Operating expenses (2 015) (1 997) Operating profit (loss) (EBITA) Operating margin (EBITA) (%) 3,2 4,9 1) Circulation revenues consist of subscription and single copy sales revenues Number of employees In 2003, Aftenposten continued its restructuring programme, which will bring increased profitability and a sharper competitive edge. Product initiatives included a facelift for the morning edition, with part of the newspaper now produced in tabloid format. Taking this a step further, the future product structure is being carefully evaluated during the first half of 2004 to guarantee economically sound development. This is being done with constructive contributions from throughout the organisation. In spring 2003, Aftenposten moved into new, contemporary, efficient premises in Biskop Gunnerus gate 14. There has been a sharp increase in the number of users of Aftenposten s online edition. FINN.no enjoyed a good year, with a positive earnings trend and an enhanced position as the leading online classified advertising service. Development of new electronic distribution channels in Distribution Innovation has moved from the pilot stage to practical use. At the start of 2004, Aftenposten s Chief Editor of ten years, Einar Hanseid, decided to take up another post in the Schibsted Group. He is succeeded by Hans Erik Matre. After the morning edition s weak growth in 2002, the paper s circulation for 2003 was 256,600, a decrease of 6,400. The afternoon edition achieved a figure of 155,400, and the Sunday paper 232,900, which are reductions of 8,500 and 1,800 copies respectively. DISTRIBUTION The market for distribution services is in a growth phase and Aftenposten has exploited its expertise in sales, distribution and technology to position itself at the forefront in developing the distribution systems of the future. E-budboken from Distribution Innovation has attracted international attention and recognition. The solution is already up and running in Norway and is currently undergoing testing in Sweden and Finland. Online communication via handheld PDAs ensures flexibility and a high level of quality in deliveries. During 2003, Aftenposten joined forces with Orkla and A-pressen to set up a competitive alternative to Norway Post. The business concept of the company Mediapost is to distribute newspapers, weekly magazines and books at competitive prices and with a high level of distribution quality. The company has already won distribution contracts with six customers. Aftenposten is also co-owner of a number of distribution companies in eastern Norway. THE ADVERTISING MARKET In 2003, the classified market was hit by a five-percent fall in volume. The recruitment market was affected by high unemployment and a lack of vacancies, and there was a further decrease in the volume of advertisements compared with The car market was slow throughout the year. This was partly due to an increasing move by the private market to the Internet, mainly FINN.no. Initiatives are underway to stem the flow, and advertising packages have been developed which combine newspapers and the Internet. The real estate market showed a stable volume compared with Guaranteed advertisement insertion due to a more sluggish market resulted in a moderate decline in revenues. At the same time, the basis for comparison from 2002 was the best result ever in the real estate market.

36 >> 32 NEWSPAPERS DISTRIBUTION OF ADVERTISING REVENUES AFTENPOSTEN Classified Brand/Display The most positive development was in the market for chain stores and shopping malls, with revenues increasing by 13 percent compared with the previous year. Direct Mail in this segment showed a growth of 23 percent. Brand advertising experienced a growth of 10 percent compared with 2002, which is partly attributable to the very positive development of the Storbysamarbeidet (advertising package) initiative. Sound development in these markets is expected to continue in There was a further decrease in Aftenposten s advertising revenues in 2003 compared with the previous year. This was, to some extent, offset by positive development in circulation and single copy sales revenues. Total operating revenues for printed newspapers fell by three percent from 2002, which led to an increased focus on profitincreasing measures. REORGANISATION The reorganisation programme, which was initiated in autumn 2001 with a budget of NOK 200 million, was topped up with another NOK 200 million in December The focus in 2003 was on executing the programmes and identifying new measures to be implemented during 2004 and The programme is proceeding as expected. The decision to move all operations from the old premises in Akersgaten was based on a combination of the desire for more efficient and contemporary premises for modern newspaper production and the need for lower rental costs. Aftenposten is immersed in its goal of changing in pace with society and its readership. The desire for a more manageable newspaper format has been strong in various groups, particularly women and younger readers. The launch of the new morning edition on 26 August was what could be called a historic change. For the first time, Aftenposten offered both broadsheet and tabloid formats in the morning newspaper. The broadsheet part retained its character as a classic morning paper, while the tabloid section concentrated on culture, lifestyle and consumer topics. The change was very well received in the target groups at which the new format was aimed, but we are also seeing that it has encouraged a change in reading habits, with a greater tendency for people to take Aftenposten along on the train or bus. AFTENPOSTEN MULTIMEDIA In 2003, Aftenposten Multimedia, with its websites aftenposten.no and oslopuls.no, achieved more than 1.5 million unique users in one month for the first time. The traffic growth corresponded to 24 percent. Of the purely online newspapers, aftenposten.no is in third position in Norway in terms of unique users. Aftenposten Multimedia achieved record turnover in With effect from 1 January 2003, the advertising sales company PrimeTime was merged with Aftenposten Multimedia. FINN.NO FINN.no AS, established in autumn 1999, is located in Oslo and owned mainly by the five largest regional newspapers in Norway: Aftenposten, Adresseavisen, Bergens Tidende, Stavanger Aftenblad and Harstad Tidende Group. Aftenposten owns 62 percent. The Company is organised in a group structure, with subsidiaries in the different business areas. The aim of the Company is to develop and operate advertising bases on the Internet. The Company has strengthened its position as the largest and leading marketplace for online classified advertising in property, jobs and cars. The number of unique users grew by over 50 percent in FINN is the 10th largest website in Norway in terms of unique users and ranks among the top three in page views. In 2003, the Company had a turnover of NOK 135 million and an operating profit of NOK 44 million. FinnTech AS, a company in which FINN.no AS owns 50 percent of the shares, is responsible for technological development. The other shareholders in FinnTech AS are Fish4 Ltd and ANM Ltd (both have their head office in the UK). In December 2003, Finnmer AB in Sweden bought out Blocket.se, which is Sweden s largest website for classified advertising. FINN.no AS has a holding of per cent in the merged company. FINN.no expects online advertising sales to continue to increase, both in the classified and the brands markets, and is well equipped to increase its market share and turnover in The international alliance resulting from FinnTech and Adexalliance is expected to have a positive effect by increasing knowledge of development trends in the European classified market. AVIS1 avis1 (NOK million) Operating revenues Operating expenses (30) (47) Operating profit (loss) (EBITA) (12) (18) Number of employees avis1 was launched in April 1999 as a competitor to the free newspaper Osloposten. In autumn 2002, Osloposten closed down, leaving avis1 as the sole player in the capital s free newspaper market. In 2003, there were 40 weekly issues of avis1, with an average of 52 pages, 25 of which were advertisements.

37 >> 33 NEWSPAPERS Norge Japan Sverige Sveits Storbritannia Østerrike Canada Peru Singapore Island Danmark Tyskland Nederland Luxemburg New Zealand Ukraina USA Hong Kong Thailand Estland Slovenia Australia Belgia Bulgaria Latvia Irland Tsjekkia Ungarn Malaysia Frankrike Serbia Kroatia Tyrkia Spania Slovakia Italia CIRCULATION PER INHABITANTS Source: WAN 2003 The circulation was approx. 155,000. The newspaper is distributed by the Aftenposten afternoon edition s vans, by hand at junctions and in self-service dispensers at a number of locations in the city. According to the Gallup Norwegian Consumer & Media survey s readership survey in September 2003, avis1 had 190,000 readers, which is down on the previous figure of 223,000. In late January and early February 2003, avis1 reduced the number of full-time jobs by ten and phased out its own production of editorial material. Bought-in material from freelancers and NTB/Scanpix became the newspaper's primary source of content. In autumn 2003, it was decided that, from the end of the year, avis1 would assume an active role as a distributor of Aftenposten s real estate advertisements in Oslo centre, in eastern Oslo and in parts of Romerike. Realtors in these areas now also have their Aftenposten morning edition advertisements in avis1, and so gain 190,000 extra readers. VERDENS GANG VG Group Operating result (incl. VG AS, VG Multimedia AS and Avisretur AS) (NOK million) Circulation revenues 1) Advertising revenues Other revenues Operating revenues Operating expenses (1 398) (1 345) Operating profit (loss) (EBITA) Operating margin (EBITA) (%) 20,3 16,7 1) Circulation revenues consist of subscription and single copy sales revenues Number of employees In 2003, Verdens Gang Group and Verdens Gang AS reported their best financial results in the Company s history. The solid results are due to increased advertising sales, increased cover price and effective cost control. INCREASED ADVERTISING SALES CIRCULATION DOWN After two years of record circulation figures, VG s weekday circulation decreased by 10,320 copies to 380,190 in Sunday circulation increased by 308 copies to 314,730. VG retained its market share of over 67 percent in the single copy marked. There has been a steady rise in Sunday circulation each year since the Sunday newspaper was launched in Following a decline in 2002, we have seen a small increase again in The Norwegian newspaper market is recognised as being a world leader in circulation per capita. The circulation is high and has remained relatively stable. There has nevertheless been a slight decline in the market as a whole in recent years. Norwegian single copy newspapers continue to hold a strong position. VG is read by 1,376,000 people every day. This corresponds to 36.6 percent of the Norwegian population over 13 years of age. VG s readership is evenly spread across the whole country and the proportion of male and female readers is 53.7 percent and 46.3 percent respectively. This means that VG is an effective and much-used channel for national advertising campaigns. With VG s self-imposed advertising ceiling, which allows a maximum of 25 percent of the news-paper to be advertisements, each advertisement attracts a great deal of attention. After a relatively poor 2002, advertising sales increased by 13 percent in There was a 4.3 percent volume increase. The advertising mix has moved in the direction of higher priced advertisements. PRODUCTION 175 million newspapers were printed in On average, 268,000 newspapers were available for distribution to the market at a.m., one hour after the start of printing. This is 22,000 more than in The regularity and print quality of the daily product is constantly improving, due to our methodical monitoring and, in particular, increased interest in the work on quality at the printing plants. VG MULTIMEDIA VG Multimedia AS experienced positive development in Revenues increased by 34 percent, while costs rose by three percent. Operating profit amounted to NOK 6 million, which meant that 2003 was the first profitable business year.

38 >> 34 NEWSPAPERS MARKET POSITION vg.no, which is the Company s main product, is established as Norway s largest website and in October became the first website in Norway to exceed 2.5 million unique visitors in one month. For the whole year, the number of visitors was up by 33.8 percent on Since mid-october, vg.no has had over one million unique visitors weekly, and according to TNS Gallup s Consumer and Media survey, the number of daily users in the 4th quarter of 2003 was 618,000. This makes vg.no the country s 4th most read newspaper. VG Mobil, which is the Company s mobile phone news service, achieved a figure of 100,000 unique visitors in December. The online advertising market also enjoyed considerable success in An overview of the distribution of advertising sales in the different media shows that the Internet s progress in 2003 put it on a par with radio. VG Multimedia s growth of 38 percent is roughly in line with market growth as a whole. FUTURE PROSPECTS Continuous product development and improvement is one of VG s success factors. The focus continues to be on wider selection of news content and moderate changes in the visual presentation of the printed newspaper. VG Multimedia expects continued growth in traffic and revenues, both for Internet and mobile services. Even though almost all Internet users visit VG Nett during the course of one month, there is still a great growth potential in daily use. The prime strategy continues to be to strengthen and further develop VG on paper and at the same time establish a financial base for VG Multimedia. It is VG s goal to deliver content through several channels. Development and improvement initiatives are continuing, in a situation where we are seeing ever-increasing competition from other media. AFTONBLADET Aftonbladet Hierta Group Operating result (SEK million) Circulation revenues 1) Advertising revenues Other revenues Operating revenues Operating expenses (1 681) (1 659) Operating profit (loss) (EBITA) Operating margin (EBITA) (%) 11,2 9,0 1) Circulation revenues consist of subscription and single copy sales revenues Number of employees The financial results show 2003 to be the best year in Aftonbladet s 173-year history. The newspaper achieved its highest circulation in 27 years and a targeted concentration on the Internet resulted in a profit contribution from the subsidiary Aftonbladet Nya Medier AB. The newspaper Aftonbladet retained its position as the Nordic Region s leader, with a daily circulation of 448,300, which was 4,900 up on The nearest competitor in Sweden, Expressen/GT/KvP, trailed by around 90,000 copies. Aftonbladet s market share is unchanged at 56 percent. A year of high news fever, which included the war in Iraq and the murder of Foreign Minister Anna Lindh, contributed to increased sales of single copy sales newspapers in Sweden. The Aftonbladet Group s financial success is largely attributable to careful control of fixed costs in all areas, as well as increased sales of newspapers and advertisements. Advertising sales in the paper newspaper rose by 12 percent to SEK 329 million. The results are excellent compared with the general development in the Swedish newspaper advertising market. AFTONBLADET NYA MEDIER The subsidiary Aftonbladet Nya Medier AB, which was established in 2000, reported an annual profit for the first time. Revenues increased by SEK 19 million to SEK 82 million. is by far Sweden s most visited website. In November it had more than 5.3 million unique visitors, which is an increase of more than 1.1 million compared with the same month in The main reasons why Aftonbladet Nya Medier has managed to turn losses into profits are continued cost control, and the investment in new payment services. Viktklubben and Pluspaketet were launched in In addition, advertising sales increased by SEK five million to SEK 48 million. FOCUS ON SPORT Aftonbladet s position in sport was further strengthened in The daily sports supplement Sportsbladet has approximately one million readers every day. The monthly sports magazine S has performed strongly, both in journalism and advertising. The circulation is around 50,000 and even though it is only one year old, S scooped the Swedish Magazine of the Year award, presented by the trade association Sveriges Tidskrifter. S also represents a new advertising market, which in 2003 brought in sales of SEK six million. CHALLENGES Major new challenges await the Aftonbladet Group in In journalism, there is increasing qualitative competition from TV and other newspapers. The journalism in single copy sales newspapers is becoming increasingly inspiring. For this reason, more focus is being placed on news reporting and finding new ways to reach broader population segments. This applies particularly in sport, where the European Football Championships and the Olympics will be major events.

39 >> 35 NEWSPAPERS ' 2400' SvD GP 24000' 1800' 2000 DI 16000' TV4 1200' ' DN 600' Q1 01 Q2 01 Q3 01 Q4 01 jan mar jun sep jan mar jun sep 03 jan 04 0 Aftonbladet Expressen 0 Aftenposten VG Aftonbladet SvD ONLINE NEWSPAPERS IN NORWAY Unique visitors in per month VG Dagbladet Aftenposten Nettavisen TV2 1) Includes TV 2 and Nettavisen 2) Nettavisen reported separately until September 2003 Source: Gallup Aftonbladet.se has more unique visitors than the other large news sites together DISTRIBUTION OF REVENUES Advertising revenues Single copy sales revenues Subscription revenues Other revenues Aftonbladet s goal is a continued growth in circulation in Commercially, Aftonbladet created openings for new success in The acquisition of the classified portal Blocket put the newspaper at the head of the online classified advertising market. Blocket has increased its potential by being linked to the traffic on aftonbladet.se. There is much to indicate that the development in the advertising market will benefit single copy sales newspapers in Aftonbladet s advertising department is well prepared to meet the challenge. The programme to strengthen the Aftonbladet brand will continue in All employees are taking part in this work which has been in progress since A large number of seminars and workshops have been arranged to bring new ideas and increased vitality to operations. SVENSKA DAGBLADET Svenska Dagbladet Group operating result (SEK million) Circulation revenues 1) Advertising revenues Other revenues Operating revenues Operating expenses (843) (850) Operating profit (loss) (EBITA) 12 (49) Operating margin (EBITA) (%) 1,4 (6,1) 1) Circulation revenues consist of subscription and single copy sales revenues Number of employees In 2003, Svenska Dagbladet reported its best operating profit ever, in an advertising slump which was the worst in several decades. This is the result of five years of improving efficiency, product development and intense marketing. The Group s operating profit has improved by more than SEK 61 million compared with 2002, which is mainly due to increased revenues. Costs have remained largely unchanged. The newspaper s circulation continued its positive development, rising for the third year in a row, this time by 1,100 copies to a total of 186,100. The market in Stockholm, which has been a priority area in recent years, had a circulation of 124,700, an increase of 3,200 copies. Circulation revenues increased by nine percent to SEK 359 million. This meant the average subscription price improved during the year. MORE READERS The advertisers choice of media is largely governed by the number of readers. The most recent research, in autumn 2003, shows that Svenska Dagbladet is the only large newspaper to have increased its reach. The number of readers was 479,000, an increase of 22,000. There was no improvement in the advertising market situation in 2003, but we have now seen an end to the decline. Storstadspress (the largest newspapers in Sweden s three largest cities) which includes Svenska Dagbladet, experienced negative development, particularly

40 >> 36 NEWSPAPERS CIRCULATION OF NORWEGIAN SINGLE COPY SALES NEWSPAPERS CIRCULATION OF SWEDISH SINGLE COPY SALES NEWSPAPERS VG Dagbladet Aftonbladet Expressen since 2000 incl. Kvällsposten and Göteborgs-Tidningen due to the reduced recruitment market. However, this did not prevent advertising revenues from rising by nine percent to SEK 417 million. The competitive situation has become harder. The free newspaper Stockholm City is established and Metro is a new player in the real estate market. In view of the weak advertising market and the fiercer competition, it is pleasing that Svenska Dagbladet is, for the first time in nine years, able to show a positive operating profit and increase its market share. The strategy of concentrating on the Stockholm area, stronger reader focus and continuous product improvement all proved successful. Svenska Dagbladet stands out as The modern morning paper for the inquisitive urbanite. The newspaper has taken the position as the country s news leader with eye-catching revelations. Irregularities at Stockholm Transport System gave Svenska Dagbladet the Stora Journalistpriset award in The news profile was strengthened with a number of investigative series of articles. The murder of Foreign Minister Anna Lindh was the dominant news story throughout the autumn. THE READERS JUDGEMENT The website SvD.se was relaunched with a new, user-friendly form. The emphasis was placed on news, as well as increased traffic and profitability. At weekends, SvD Helg contains more reading material in News, Business and Culture. Keywords for SvD Helg are Pleasure, Inspiration, Knowledge and Outlook. The process which has been started has moved readers to change their view of the newspaper. A major survey has revealed that Svenska Dagbladet has moved from being conceited, complicated and old-fashioned to become honest, open and topical. 20 MINUTES 20 minutes, proforma (100 % Switzerland, 100 % Spain and 50 % France) (EUR million) Operating revenues Operating expenses (59) (58) Operating profit (EBITA) (9) (26) Number of employees On 3 March 2004, Schibsted signed an agreement with Apax Partners and a group of Swiss investors, whereby Schibsted increased its stake in 20 Min. Holding AG from 41 percent to approx. 98 percent. This transaction means that Schibsted gains control of 50.5 percent of the Swiss company which publishes 20minuten and 50 percent of the company which publishes 20minutes in France (16 percent through 20 Min Holding AG and 34 percent directly, with the remaining 50 percent owned by SPIR/Sofiouest). In spring, 20 Min Holding AG will exercise an option by purchasing the remaining shares in the company that publishes 20minutos in Spain, which means that Schibsted will have 100-percent control of this company through 20 Min Holding AG. The acquisition of 20 Min Holding AG represents a strategic venture for Schibsted in two of Europe s largest advertising markets, France and Spain. At the same time, this ensures control of the Company s presence in Switzerland until the agreement with tamedia, signed in spring 2003, is completed and the remaining shares are sold. The buyout will be in two transactions of percent at the beginning of 2006 and The price of the remaining shares will be determined by the result parameters

41 >> 37 NEWSPAPERS Sveits Spania Paris Total MINUTES TODAY CIRCULATION (Figures in Mars 2004) 20 MINUTES TODAY DAILY READERS (Figures in December 2003) for 2005 and Min Holding AG will retain the controlling interest and will run the newspaper until the final transaction of percent is completed. The commuter newspaper concept has shown its viability all over Europe in recent years, and 20 minutes has generated very high readership figures in all three countries, with a total of 3.5 million readers a day, which makes the newspaper the sixth largest in Europe. Revenue growth for 20 Min Holding AG from 2002 to 2003 was 44 percent, and the first two months of 2004 also show strong growth compared with the same months in minutes will also be able to form the basis of further investment in these large markets in mobile, Internet and spin-off products. Since the 20minutes free newspaper concept was developed by Schibsted and first launched in December 1999, it has spread to 11 cities in three countries. Further expansion in Spain is planned in spring The 20minutes concept is based on newspapers which give their readers rapid updates and service, with a focus on four areas: news, entertainment, consumer material/- guides and interactive services. The newspaper is distributed at public transport points in the morning, five days a week. The main target group is young urbanites who use the city a lot a group which traditional media, particularly newspapers, have found difficult to reach. However, 20 minutes has quickly managed to create a large audience in this target group. The Swiss advertising market has continued to be difficult, but the situation appears to have bottomed out. The combination of good readership figures and systematic, professional sales work has given 20 minutes strong growth in the advertising market saw the Company deliver its first annual operating profit. The Spanish advertising market has also been difficult, but stabilised in minutos increased its revenues by 46 percent in 2003 compared with 2002, and achieved its first break-even in the second and fourth quarters. In 2003, 20minutos expanded to two new cities in Spain, Seville and Saragossa, and enjoyed strong growth in readership, enabling the newspaper to rank as second-largest in Spain. Only El Pais is larger. The biggest challenge in Spain is still the fierce competition with Metro International, and the attention the free newspaper market is beginning to receive from the established, traditional newspapers. In Paris, 20minutes has continued to consolidate its position, and its results are in line with its business plan, despite a very weak advertising market. With its 1.36 million readers, the newspaper is the second largest. In February 2004, 20minutes launched editions in Lille, Lyon and Marseille, increasing its total circulation in France from 450,000 to 675,000. In 2004, the focus for the 20 minutes companies will continue to be on the profitability of existing operations. At the same time, new and interesting projects will be constantly evaluated. It is expected that the advertising markets of Switzerland, Spain and France will begin to improve during SCHIBSTED TRYKK Schibsted Trykk (NOK million) Operating revenues Operating expenses (649) (648) Operating profit (loss) (EBITA) Operating margin (EBITA) (%) 1,9 6,3 Number of employees In addition to printing Aftenposten and VG, Schibsted Trykk AS also had important external production assignments in The printing plant has also been effective in obtaining printing assignments from other newspapers. Dagsavisen transferred its production to Schibsted Trykk on 1 January In general terms, there is keen competition for printing assignments and Schibsted Trykk must constantly improve its productivity in order be competitive. PRODUCTION There is still potential for improvement in terms of productionrelated matters, and efforts are being made to improve output capacity and reduce misalignment. A waste-paper project was initiated early in A conversion of plate production at the supplier Agfa resulted in major production problems. There was a successful conclusion to Schibsted Trykk s negotiations with the supplier, with the installation of new equipment. Aftenposten s introduction of a tabloid section of the morning edition gave a more difficult print production, which affected regularity. The printing of VG on Sunday was reduced from two to one printing press in September. There are plans to improve productivity and regularity even

42 >> 38 NEWSPAPERS more in the coming years. During the year, the Company continued its work to reduce sickness absence. The absence project was concluded in March, with a number of proposals put forward. Sickness absence continued at its high level, totalling 17 percent in In 2004, the Company will invest in and implement new measures to improve the working environment. It is the Company s goal to reduce sickness absence to a normal level in a year or so. FINANCIAL SITUATION The reduction in turnover in 2003 compared with 2002 is largely due to reduced prices. The lower profit can be attributed to reduced prices, increased overtime costs and allocation of pension expenses. External printing assignments, with increased sales and a better contribution margin, have reduced the negative effects. Despite lower prices in 2004, the goal is to improve profit by reducing costs. TIDNINGSTRYCKARNA Tidningstryckarna (SEK million) Operating revenues Operating expenses (440) (456) Operating profit (loss) (EBITA) (10) 9 Operating margin (EBITA) (%) (2,4) 1,9 Number of employees In 2003, Tidningstryckarna Aftonbladet Svenska Dagbladet AB saw its operating profit fall sharply compared with This is largely due to reduced turnover from granting a majorcustomer discount of SEK 12.3 million to Aftonbladet and Svenska Dagbladet. During 2003, considerable expenses accrued, as a result of delayed delivery to the two newspapers. This was caused by unstable summer production and a new agreement between the parties. PRODUCTION In other respects, production was satisfactory compared with the major problems of 2002, when installation of new colour printing presses led to a large number of web breaks and delivery problems. Technical breakdowns and web breaks, caused by poor paper quality, led to production disruption. The production volume, measured in the number of printed pages, increased for Aftonbladet and Svenska Dagbladet, but there was a small reduction in ordered copies. The printing of Metro and other external printing assignments improved, as a result of increased use of colour. All agreements relating to permanent and temporary external assignments were renewed for Personnel expenses were higher in 2003 than in the previous year, due to wage increases, overtime and a training programme for middle management. In 2002, Tidningstryckarna in Stockholm launched an environmental project for cleaning rubber blankets in the printing presses. The project received a grant of SEK 13 million from the EU, paid in 2002 and The aims of the project were to cut the use of solvents by 90 percent, and reduce the number of hours spent on cleaning and increase the number of operating hours. The successful project was completed in autumn It was decided to invest in environment-friendly production technology on another printing press. SCANPIX SCANDINAVIA Scanpix Group (SEK million) Operating revenues Operating expenses (130) (140) Operating profit (loss) (EBITA) 9 (7) Operating margin (EBITA) (%) 6,3 (4,4) Number of employees Scanpix Scandinavia AB is the leading picture agency in Scandinavia, with operations in Norway, Sweden, Denmark and Estonia. Schibsted owns 75 percent of the Company. The other owners are Det Berlingske Officin AS (15 percent) and NTB AS (10 percent). Operations include production, archiving, indexing, procurement and sale of news and file images in all

43 >> 39 NEWSPAPERS genres. Customers include all types of media, from newspapers and magazines to Internet and mobile services. Scanpix has agreements to supply news photos to the largest newspapers in Norway, Sweden, Denmark and Estonia. The Company has the Scandinavian rights to sell Reuters and EPA s pictures and videos, and also represents a large number of leading foreign picture agencies and archives, such as AP, AFP, Corbis, SIPA, Camera Press and Lehtikuva. The Scanpix Group reported much improved results for 2003 compared with the previous year. Losses have been turned into profit and the improvement has come during a market situation of falling sales. All subsidiaries have shown positive results. Cost savings were successful and savings targets were achieved. In 2003, the Company invested in the commercial market with the launch of Scanpix Creative. The service is aimed at the advertising, publishing and business sectors, with production and sale of rights-protected illustration photos. Creative achieved high turnover growth at the end of the year and already represents 10 percent of turnover, which makes it an important future growth area. Eesti Meedia is the largest media company in Estonia, with operations in newspapers, magazines, printing, Internet, radio and infrastructure companies. The Group publishes the largest national quality newspaper Postimees, the tabloid SL Õhtuleht (50 percent), the magazine company Ajakirjade Kirjastus (50 percent) and five local newspapers ( percent). In addition, the Group owns the Kroonpress printing plant and has shares in radio operations. In autumn 2003, Schibsted celebrated its fifth anniversary of taking over the Postimees Group, which became what is now Eesti Meedia. Postimees kept up its pleasing circulation development, with a seven-percent increase in subscription figures. Despite a weaker advertising market in 2003, the newspaper managed to maintain the same profit level as in 2002, thereby confirming its position as Estonia s leading quality newspaper. However, the news-paper is in a tough competition situation and even though Postimees is struggling with low operating margins, the main focus from now on is to further strengthen the newspaper s position in the readership market, particularly in the capital, Tallinn. This means that continued initiatives to improve and strengthen the editorial product have top priority. Good results in other operations, particularly printing, enabled Eesti Meedia to report sound operating margins. titles, continues its positive trend by reporting excellent results, and is one of the most profitable parts of the Estonian media group. All the most important titles performed well and the Company was also able to strengthen its position in the production of customer and consumer magazines. Kroonpress is a modern, well run printing plant and an important contributor to revenues in Eesti Meedia. In 2003, Kroonpress accounted for more than half of profits. During the year, the printing plant invested in new machinery, which helped to strengthen its position even more. By the end of 2002, the Company had reached full production capacity. The currency situation, with the weak dollar, had contributed to reduced opportunities in the dollar-based export markets. Kroonpress still managed to maintain the same profit level as in 2002 and an operating margin of 15 percent. With new equipment installed, the Company can look forward to new growth in turnover and profit in KANAL 2 Kanal 2 Operating result (EEK million) Operating revenues Operating expenses (94) (76) Operating profit (loss) (EBITA) (3) (18) Operating margin EBITA (%) (3,0) (31,0) The TV channel Kanal 2 achieved a considerable improvement, both in viewing figures and financial results in The channel is established as the second-largest of Estonia s three TV channels, and achieves good viewing figures in peak time and among the important target group, year-olds. Turnover increased by 67 percent compared with 2002, and the operating loss was cut to EEK 3 million from EEK 18 million the previous year. The TV market share among the Estonian media is expected to increase in Kanal 2 s stronger position means that we can expect the channel to further improve its results. Operating profit for ESTONIA (EEK million) Operating revenues Operating expenses (507) (471) Operating profit (EBITA) GW and other revenues and expenses (25) (37) Operating profit (EBIT) 30 (4) Operating margin EBITA (%) 9,8 6,5 Exchange rates EEK / NOK 51,13 48,00 ESTONIA EESTI MEEDIA GROUP Eesti Meedia Group Operating result (EEK million) Operating revenues Operating expenses (417) (397) Operating profit (loss) (EBITA) Operating margin EBITA (%) 12,1 11,5 Number of employees SL Õhtuleht further enhanced its position in the readership market and is now established as the most read newspaper in Estonia. The newspaper also managed to increase its market shares in the advertising market and ended the year with an operating margin of 16 percent. The five local newspapers controlled by Eesti Meedia delivered their best results ever. For many years the circulation figures for these newspapers have shown a slight tendency to decrease, but the trend has been reversed and a modest increase is expected in the coming years. Advertising sales continue to increase. The magazine company Ajakirjade Kirjastus, which publishes 15 Number of employees 59 56

44 >> 40 TV, FILM & PUBLISHING 2003 was a successful year for the TV, Film and Publishing business area. Schibsted s TV and film companies achieved turnover of NOK 1.3 billion, representing a growth of 11%. The operating profit was almost three times as high as in JAN ERIK KNARBAKK EXECUTIVE VICE PRESIDENT TV, FILM & PUBLISHING TV, Film & Publishing >>p.40 Metronome Film & Television >>p.41 Sandrew Metronome >>p.42 TV 2 Gruppen >>p.43 Bladkompaniet >>p.44 Chr. Schibsteds Forlag >>p.45 Dagens Medisin, Dine Penger >>p.46 Maison, Tique, Schibsted Internasjonale Bøker >>p.47 Svenska Förlaget The Group s publishing sector was yet again able to show solid results, with an operating margin of 10 percent. In addition, the TV2 Group, which is an associated company, contributed a solid profit after taxation. The TV and film businesses have been an important part of the Schibsted Group s strategy in recent years, and much of the Group s growth has come in the TV and film sector. Building a strong Scandinavian position as a content provider for TV has been a stated ambition since Schibsted started its first production company in At the end of 2003, Schibsted was by a clear margin the largest independent player in the market in the Scandinavian market. As a whole, the TV and film companies 2003 results indicate better times to come in the Nordic TV production sector after a couple of challenging years for the industry. The digitalisation process in the TV sector has started. Internet TV has made its entrance. Broadband capacity is being expanded. More channels and an increasingly competitive TV market mean that there is growing competition for good quality content. Demand both for national products and for the rights to international films is increasing. The Scandinavian DVD market is experiencing very strong growth. The Schibsted companies in the TV and film sector aim to strengthen their position further both as suppliers of TV programmes in Scandinavia and as distributors of Nordic and international feature films through the channels that are, and will become, of commercial interest. The available TV and film expertise that the Schibsted Group has in all of the Nordic countries is a powerful weapon in the competition for current and future visual media users. Specialist expertise is also central to the development of Schibsted s publishing companies. Through acquisitions and organic growth, the publishing companies have over the past few years become a group of specialised units which, through their expertise and creativity, have proven that they can make an impact on the market. The profit performance of the publishing group as a whole has been stable and good. As a step in the development of the publishing sector in the Schibsted Group, a deliberate process of co-location has taken place, along with increasing co-operation between the various publishing units. As a part of this process the Schibsted Group s Board decided, in December 2003, that the Group s Norwegian publishing companies should be merged. The goal is to make use of common resources amongst units that have a great deal in common. The aim is also that the publishing units shall be able to continue their development and to run profitable and good publishing operations. The formal aspects of the merger process will be completed in the course of the first quarter of METRONOME FILM & TELEVISION (SEK million) Operating revenues Operating expenses (745) (732) Operating profit (loss) (EBITA) EBITA operating margin (%) 7,0 2,0 Number of employees The Metronome Film & Television Group, which is responsible for all TV and film production in the Schibsted Group, made strong progress in 2003 and succeeded in quadrupling its profit from the previous year. In 2003 the production market has been characterised by restraint. At the same time, the Nordic advertising market has been at the same low level as in the previous year, albeit with slight growth in the first half of the year, but with renewed weakness towards the end of the year. The exception is Denmark, where the end of the year was also positive, primarily on account of changed rules for medicine advertising. Cost cutting at the state-owned channels as a result of demands for increased viewing time, as well as preparations for the privatisation of TV 2 in Denmark, has helped to further increase competition in TV production. The Metronome Group has met these challenges well, and has succeeded in increasing turnover by seven per cent to SEK 801 million. The uncertainty surrounding these markets has made it necessary to carry out cost adjustments, in order to be in a better position to meet any fluctuations. Metronome Film & Television is still the Nordic region s largest independent production company for TV programmes, drama series, feature films and commercials, and is now more than twice as large as

45 >> 41 TV, FILM & PUBLISHING TV / Film Operating result (NOK million) Operating revenues Operating expenses (1 192) (1 105) Operating profit (loss) (EBITA) GW & other revenues & expenses (16) (16) Operating profit (loss) Income from associated companies EBITA operating margin (%) 5,2 2,3 its nearest competitor. In 2003 the Group was responsible for a number of successful productions, including three further series of Big Brother. Since the start of 2000, the Group has produced as many as nine series with this format. Other important productions include Pop Stars, Alla mot en, Jeopardy! and the travel programmes När & Fjärran and Sigurds Verden. The Group also produces so-called lifestyle programmes in Sweden, Denmark and now also in Finland. In Norway, more than 1000 episodes of the daily soap opera Hotel Cæsar have been produced. Interactive TV is an important trend in the TV market. The special thing about these productions is that they are not fully financed by the TV channels themselves, but are expected to generate revenue from the audience. In 2003 the production companies Meter and Rubicon started producing this type of programme. In the feature film sector, Filmlance has made excellent progress with films such as Elina, which has won 23 prizes all over the world. The film has also been nominated as Finland s Oscar contribution and for two Guldbagge awards in Sweden. Another success is the feature film The guy in the grave next door, which has sold almost a million cinema tickets in Sweden. Metronome Studios now has commissions in central Europe, in addition to throughout the Nordic region, which means that 2003 was a very good year for the company. Poor demand for commercials throughout the year has resulted in the production area for commercials having to undergo major changes. This also applies to European Film Group, which has undergone changes and reductions to its organisation and to staff. On the positive side, it is worth mentioning that the Norwegian and Finnish businesses have been successful. The production company Otto, which is part of the European Film Group, has established itself as Finland s second largest production company of commercials. The prospects for 2004 are considered good. The production companies in the Metronome Group are well prepared and have adapted their resources to the prevailing situation. The order situation is good for the first half of the year. It includes, amongst other things, another run of Big Brother in Sweden, as well as the reality shows Single 24/7 in Norway and The Block in Denmark. SANDREW METRONOME (SEK million) Operating revenues Operating expenses (1 231) (1 233) Operating profit (loss) (EBITA) EBITA operating margin (%) 3,2 2,9 Number of employees For Sandrew Metronome, 2003 was characterised by very good progress in the areas of film and video distribution. The annual operating profit for this important part of the business was the best in the company s history. Meanwhile, the Group's Swedish cinema business had a weak year, which reduced the overall profit considerably. Work is being done on solutions to improve profitability and reduce risk in the Group's cinema business. In spite of a weak year for the Swedish cinema business, the Group s operating profit was SEK 41 million, which is SEK 4 million higher than in Sandrew Metronome s business concept is to create, buy and manage feature film rights for all current and future means of distribution. Schibsted and the

46 >> 42 TV, FILM & PUBLISHING MTV/Mastiff 10% Nordisk film 4% Jarowskij 8% Metronome 31% Strix 16% Andre 31% THE NORDIC TV AND FILM PRODUCTION COMPANIES MARKET SHARES (TURNOVER) Source: Metronome Swedish foundation Anders Sandrews Stiftelse (Trust) each owns 50 percent of the company, which is one of three large integrated film companies in the Nordic region. The Group s parent company and head office is in Stockholm, and it has national subsidiaries in Norway, Sweden, Finland and Denmark. Sandrew Metronome operates in the majority of windows in the film industry s value chain: film distribution to cinemas and on video and TV, participation in film productions, as well as operating cinemas. The most important business area for the company s profitability is currently video distribution, a development that has strengthened over the past two years, primarily on account of the success of the DVD format in the market. This market is expected to grow significantly in the coming years as well. The financial results of the company are to a large extent dependent on the commercial success achieved by the products it distributes. The success rate and profitability of individual film projects can vary greatly. Sandrew Metronome distributes Warner Bros films to cinemas and on video in Norway, Sweden, Denmark and Finland. In addition it buys and manages film and TV rights from independent producers. In 2003, Sandrew Metronome has distributed a number of the largest films in the Nordic region: Harry Potter (video), The Matrix, Chicago, Kopps, Buddy and many more. The Nordic market for film distribution to cinemas is stable. The market in 2003 was unusual, however, in that local films gained a stronger position. This was particularly noticeable in Norway, where cinema visits to Norwegian films rose significantly on account of several commercially strong films. In 2003 Sandrew Metronome increased its share of this market by focusing more on local film projects, amongst other things. This strategy will be continued in The time between a film being launched at the cinema and it being released on video is constantly decreasing. Today it is not unusual for only four to six months to pass between a film being launched at the cinema and it becoming available on DVD. This has made it more important to be commercially successful in the initial period after the launch. Ever increasing amounts are therefore being invested in marketing, particularly for the largest American film titles. The Nordic video market grew by 12 per cent in Sandrew Metronome maintained its market share. The DVD format is making strong progress, with sales increasing 60 percent in 2003, whilst sales of films in the old VHS format are decreasing significantly. The VHS format is expected to be phased out of the market by In parallel with strong volume growth for DVDs, there is noticeable pressure on prices in the market. In spite of the pressure on prices, the value of the market is expected to grow by percent annually in the coming five-year period. As prices decrease and DVD films become an impulse buy, grocery stores will become a more and more important distribution channel, and they will represent a significant proportion of sales volumes in the future. Sandrew Metronome operates cinemas in Norway, Sweden, Finland and Denmark. The Nordic market for cinema films is stable. In Sweden the cinema business has lost market share in 2003 on account of increased competition and weak access to major commercial films. The results of the cinema businesses in Denmark and Finland have improved, and our position in these markets has strengthened. The development of new forms of distribution such as video on demand are being monitored, and films are being distributed to selected businesses that have this as a core business area. We are working actively to prevent pirate copying and illegal downloading of films from the Internet in the markets where the Group is represented. The market for the distribution and sale of video films is expected to grow very strongly. The market for films distributed to cinemas is expected to be stable. Sandrew Metronome is currently well-positioned to exploit future growth in the overall market. TV 2 GRUPPEN (GROUP) (NOK million) Operating revenues Operating expenses (1 423) (1 353) Operating profit (loss) (EBIT) EBIT operating margin (%) 12,1 13, started just as well as 2002 finished for TV 2, and for the first time the channel made an operating profit in the first

47 >> 43 TV, FILM & PUBLISHING PUBLISHING Operating result (NOK million) Operating revenues Operating expenses (313) (305) 20 Operating profit (loss) (EBITA) GW & other revenues & expenses (9) (9) Operating profit (loss) (EBIT) Jan 02 Feb 02 Mar 02 Apr 02 Mai 02 Jun 02 Jul 02 Aug 02 Sep 02 Okt 02 Nov 02 Des 02 Jan 03 Feb 03 Mar 03 Apr 03 Mai 03 Jun 03 Jul 03 Aug 03 Sep 03 Okt 03 Nov 03 Des 03 EBITA operating margin (%) VIEWERS PER TV CHANNEL IN NORWAY NRK1 TV 2 TVNorge TV 3 NRK2 quarter. As it turned out, however, the positive trend did not continue throughout the year. After a strong first half of the year, the autumn was somewhat weaker than expected, both in terms of viewers and advertising. The combined result of these challenges is an operating margin that is slightly down on last year s, at 12 percent against 13 percent for However, positive developments in associated companies and in some of the Group's investments meant that the profit before taxes was higher than in 2002, at NOK 188 million against NOK 166 million. The battle for viewers was tough in There was particularly strong competition in the autumn, and the other commercial channels succeeded in gaining audience share at the expense of TV 2. For the year as a whole, the channel achieved an audience share of 29 per cent against 32 per cent for In comparison, TV Norge increased its share by 0.8 percent to 10.4 per cent. The increased competition was also an important reason for the programme costs increasing by eight percent in relation to the previous year. TV 2 Nettavisen was acquired at the turn of the year, and integration with tv2.no continued throughout This has not yet, however, produced results, and the website made an operating loss of NOK 10 million for the year as a whole. TV Norge has had a very good year in Its strengthened position amongst attractive viewer segments has produced results, and TV 2 s share of the result has gone from being a loss of NOK 2 million in 2002 to being a profit of NOK 19 million in TV 2 took yet another step in the direction of becoming a broad, electronic media group when at the end of July it signed a contract to buy 34 percent of Kanal24 through a private placement. The Group also has an option to increase its shareholding to 51 percent. BLADKOMPANIET (NOK million) Operating revenues Operating expenses (184) (169) Operating profit (loss) (EBITA) EBITA operating margin (%) 9,9 11,0 Number of employees In 2003 Bladkompaniet AS had the highest turnover in its history. An increased focus on its core areas of paperback series and comics for the mass market has reaped benefits. Bladkompaniet has a strong position as a publisher both of Norwegian and foreign paperbacks, and of comics in magazine, album and book format. Being distributed through Bladcentralen the products can sell in large numbers, in addition to sales through our own subscription and mail order department and in bookshops. The number of publications in 2003 was approx. 325, consisting of 168 books and 157 magazines, comic books and Christmas special editions. The majority of books and comic strips are published in series at regular intervals. In the course of 2003 the competitive situation has further intensified, with more players in the market distributing an increasing number of paperback series and comic strips through Bladcentralen. Bladkompaniet has in 2003 raised its market share in the Norwegian comic strip market, and now has 19 percent of total comic strip sales at Bladcentralen. This includes the monthly Pondus magazine, which has an average sale of 57,000 single copies in addition to approx. 10,000 subscribers, making it Norway s second biggest comic magazine. Growth in the comic strip market is in the coming years expected to come from the Japanese manga

48 >> 44 TV, FILM & PUBLISHING 1500 % 1000 % 500 % 0 % TV2 TV Norge TV3 TURNOVER PER TV CHANNEL IN NORWAY 2003 (Figures in NOK million) series. In response to this, in October Bladkompaniet launched the new magazine Manga Mania as a joint production with its Swedish subsidiary Manga Media AB. Agreements with two large Japanese publishers ensure that Bladkompaniet has the rights to manga products both in magazine, album and book format. In 2003 the number of Norwegian paperback series at Bladcentralen was greater than ever, and at the end of the year Bladkompaniet had eight Norwegian series running. This year s biggest project, Hannah en slektssaga by the author Laila Brenden, was launched in July, and after only a few months it had over 7,900 subscribers, in addition to over 22,000 single copy sales of each edition. In 2003 Bladkompaniet had a market share of 37 percent of the total turnover of books at Bladcentralen, down 1 percent on the previous year. The biggest success of the year in terms of books was the third Pondus book, Pondus Hat Trick, with text and drawings by Frode Øverli. By the end of the year the book had sold 35,000 copies. In December 2003, sales of the uniquely Norwegian phenomenon of special Christmas editions were greater than ever. Bladkompaniet s 11 special Christmas editions had a market share of 22 per cent, up three per cent on A large part of the increase can be ascribed to good sales of the Larson and Tom & Jerry Christmas albums, as well as Pondus Jul, which alone sold over 77,000 copies. The main goal for 2004 is to achieve continued profitable growth in the core areas of paperbacks and comic strips. One of the challenges in the book market is to appear as an attractive publisher for Norwegian authors of series, and to cultivate them into leading figures in the special genre of popular literature. In the comic strip market the challenges are to further develop profitable magazines based on competitive, time-limited royalty and licence agreements, whilst establishing our own titles that the company owns the rights to. With a high level of specialist expertise, highly motivated staff, a cost-conscious business culture and a well established network of contacts, Bladkompaniet is in a good position to succeed against ever tougher competition. BLADKOMPANIET S FOREIGN SUBSIDIARIES Full Stop Media AB is Bladkompaniet s bridgehead in the Swedish comic strip market. Amongst other things, the company publishes Larsons Gale Verden and Tom & Jerry as part of Bladkompaniet s licensing agreement with Far Works and Warner. In addition it publishes a number of its own monthly magazines and comic books. In total it had 81 publications in After three years of operation the company made a positive contribution, in addition to synergies relating to joint development costs and joint production with Bladkompaniet. Manga Media AB is a joint venture, with Bladkompaniet AS and Bonnier Carlsen, Bonnierförlagen AB as its owners. The company is to publish manga products in Sweden. Since 1982 Boknöje AB has run a book club and has sold translated Norwegian books from Bladkompaniet s series, primarily Margit Sandemo s bestselling series. The Boknöje book club has approx. 6,000 members. Turnover is stable. The company is based in Helsingborg, and in 2003 it had a total of 23 publications. CHR. SCHIBSTEDS FORLAG (NOK million) Operating revenues Operating expenses (32) (33) Operating profit (loss) (EBITA) 2 3 EBITA operating margin (%) 6,5 8,3 Number of employees Above all, 2003 was a gratifying year for Norwegian fiction in bookshops, with a strong focus on several young authors. In total the turnover of Norwegian adult fiction increased by 31 percent from 2002 to In Chr. Schibsteds Forlag s main area,

49 >> 45 TV, FILM & PUBLISHING non-fiction for adults, there was however a nine per cent reduction in the total turnover at bookstores. In total this meant that the company s turnover fell slightly in The translation of David Beckham s autobiography My Life was one of the main attractions on Chr. Schibsted Forlag s autumn list. The book was one of the world s biggest sellers in 2003, and also featured on Norwegian bookstores bestseller lists in the Christmas run-up. 20,000 copies of the book were printed, and it was the Schibsted book that sold most copies after the annual classics Hvem Hva Hvor and Guinness World Records, of which 30,000 copies each were printed. Sportsboken appeared in a new format in Earlier in the year the company bought the rights to this annual publication from Sportsboken AS. The revamp was a success and the book sold out. Hvem Hva Hvor and Junior-HHH were also sold out before Christmas. Another autumn publication that did well in 2003 was art historian Tommy Sørbø s Norges kunsthistorie en kladd. The funniest book of the year, thought VG, who gave it a six out of six. That resulted in three editions being printed in a hectic Christmas run-up. The Smartguide series of travel guides were also given a good reception small, handy guidebooks, currently for 12 destinations. DAGENS MEDISIN (NOK million) Operating revenues Operating expenses (11) (13) Operating profit (loss) (EBITA) - 0 EBITA operating margin (%) 3,2 4,1 Number of employees 9 11 Dagens Medisin is an advertising financed specialist journal focusing on health issues, with Norwegian doctors, pharmacists and nurses as its target group. The run of 18,600 copies is only distributed to people in the target group, and the journal can therefore carry advertisements for prescription medicines. Turnover in 2003 was 16 percent down on 2002, which is connected with five of the largest pharmaceutical players stopping advertising between 1 April and 1 October. In addition, the market for specialist periodicals experienced a general downturn in advertising turnover of approx. nine per cent in In spite of this, Dagens Medisin delivered its best result ever. This is due to heavy cost-cutting and a certain degree of compensation for the lost revenues achieved through actively working on new advertising markets. The newspaper increased its market share of the advertising sector in its specialist field from 44 percent in 2002 to 56 percent in Dagens Medisin is a good example of a publication distributed free to its readers not necessarily being inferior to a paid-for newspaper in terms of content. The editorial team at Dagens Medisin has extensive specialist knowledge, which is supported by a reader survey from 2002 showing that the journal is very widely read by its target group. The journal is also often quoted as the source for health news both on TV, radio and in newspapers. The printed edition of Dagens Medisin is published every other week, and is supplemented by an updated online version ( The journal was established in 1998 and is owned equally by Schibsted and the publishing company Medicine Today International. DINE PENGER (NOK million) Operating revenues Operating expenses (34) (35) Operating profit (loss) (EBITA) 9 9 EBITA operating margin (%) 21,1 19,2 Number of employees The year 2003 was a year during which the company consolidated its position. The poor economic climate meant that there was no foundation for large investments and risky choices. Looking back at the year it appears that a careful strategy in 2003 was the right approach. Dine Penger is still Norway s largest financial magazine by a clear margin. Focusing on the profitability of subscribers has resulted in circulation falling by 9.5 percent to For the past two years the company has only aimed for binding subscriptions, and it was therefore expected that the number of subscribers would fall slightly. In total the company has sold around 730,000 magazines in This is 11 percent lower than the record year of 2001, but 14 percent over the total sales in 1999, which was the year before the company had a strong strategy of offering short and nonbinding subscriptions. The change in focus has had the desired effect on profitability, and the magazine delivered a very strong operating margin of 21 percent in The Internet company Dine Penger Online is experiencing rapid progress. The number of visitors, advertising revenues and profitability all increased sharply in For the first time, the company has made an operating profit. In total the Dine Penger companies as a whole made an operating profit (EBITA) of NOK 9 million and had an operating margin of 18 percent. This represents clear progress since 2002, when the margin was 14 percent. Many of the company s activities, both editorial and sales-related, faced serious challenges in 2003 as a result of the poor economic climate. The macro-economic

50 >> 46 TV, FILM & PUBLISHING situation meant that the interest in traditionally important areas of material, such as the stock market and personal financial investments like houses and cars, was very limited for large parts of the year. In addition, the competition for readers is getting ever tougher, with newspapers and broadcast media increasingly focusing on personal finance. In the advertising market, some of the magazine s most important sources of advertising, the financial and car industries, were amongst those hardest hit by the downturn, and advertising revenues fell by 7 percent compared to Low interest rates and generally positive expectations for the economic climate in 2004 mean that Dine Penger s prospects are good. MAISON OG TIQUE (NOK million) Operating revenues Operating expenses (23) (18) Operating profit (loss) (EBITA) (2) (2) EBITA operating margin (%) (8,6) (15,0) Number of employees Maison has maintained its position as one of Norway s leading interior design magazines in a highly competitive market. Circulation increased by as much as 15 percent, and the magazine strengthened its position as the leading publication for advertising in its sector. This year s kitchen edition was fully 316 pages long, making it Norway's largest ever. Since Schibsted acquired it at the turn of the year 2000/2001, Maison has continuously increased its circulation and made a profit, and 2003 was no exception in this respect. In 2004 the number of issues of Maison will increase from six to nine, with two of the editions being special magazines about food and wine. Last year s newcomer, Tique, has positioned itself as the only purely Norwegian fashion magazine. The magazine s four issues per year focus on spring, summer, autumn and winter fashion. In spite of both circulation and advertising turnover growth, the magazine made a loss in The specialist magazine publisher that is Schibsted s development unit for magazine publications will in 2004 take over responsibility for the youth magazine 4U for you. The magazine is aimed at young teenage girls, and will in the course of the year be relaunched in a new format. SCHIBSTED INTER- NASJONALE BØKER (NOK million) Operating revenues Operating expenses (35) (37) Operating profit (loss) (EBITA) 2 2 EBITA operating margin (%) 5,9 6,2 Number of employees 4 4 The big event of the year on the book front was the launch of the fifth Harry Potter book, Harry Potter and the Order of the Phoenix. On its introduction in June it surpassed all expectations and sold 36,000 copies, which is a new record for Schibsted Internasjonale Bøker (SIB) both in terms of the number of copies and turnover. This was slightly spoilt by the fact that margins were somewhat weaker as a result of pressure on prices from other players. Other big titles in the course of the year have included Michael Moore s social satires Stupid white men and Dude, where s my country, which were both helped by Moore s TV programmes during the year. The trend of growth in fiction and a decline in travel literature is continuing. This has been a trend over recent years, and SIB is adapting its range accordingly. The market has moved towards several of the large groupings choosing to import directly, with SIB being used to ensure a wide product range. Continuous work is being done on responding to this development by having products that are competitive in terms of price and availability. After SIB s distributor gave notification of a steep increase in the price of its services, a decision was made in the course of the summer to move our stock to Bladkompaniet s warehouse. This will make it easier to use warehouse capacity more efficiently, and to achieve synergies

51 >> 47 TV, FILM & PUBLISHING on the cost side. Den Norske Bokbasen will continue to be an important interface with the company s customers. In 2003, as in the previous year, the strong Norwegian krone played an important part in the good result achieved, and also made it possible to maintain low prices. Its weakening towards the end of the year against the company s most important purchasing currencies, the US dollar and the British pound, had a correspondingly negative effect. SVENSKA FÖRLAGET (SEK million) Operating revenues Operating expenses (17) (16) Operating profit (loss) (EBITA) (1) - EBITA operating margin (%) (4,4) (1,0) Number of employees 8 8 Svenska Förlaget, Schibsted s Swedish book publisher, is a small specialist publishing company, with specialist literature and textbooks on management and personal development as its core areas. In recent years the company has in addition developed a niche in historical and gift books. In 2003 the company launched 32 new titles. The company changed its management in March 2004, with Peter Stenson taking over from Lena Kamhed as the publisher. In a declining Swedish bookshop market, turnover through bookshops increased by six percent compared to Bookshop sales and direct sales to large companies/organisations are expected to become more important to Svenska Förlaget in the future, and the company s publication profile is being turned in the direction of books that are suitable for these sales channels. Apart from the publishing business, the company also runs the book club Bokklubben Liv & Ledarskap as a natural extension of its core business. The book club is an important channel for selling and marketing Svenska Förlaget s books to the company s main target groups. Like other Swedish book clubs, it is feeling the increasing competition from Internet bookshops.

52 >> 48 BUSINESS DEVELOPMENT Schibsted has over the past 10 years followed a conscious strategy of diversification from being primarily a Norwegian newspaper group to a Nordic multi-channel media content producer and distributor. SVERRE MUNCK EXECUTIVE VICE PRESIDENT STRATEGIC PROJECT AND BUSINESS DEVELOPMENT This diversification spreads the group s business risk over several countries and markets, while at the same time retaining the focus on quality media products to mass audiences. Furthermore, due to the Nordic countries leading position both as innovators in digital and mobile media and within the newspaper sector, Schibsted s know-how can be used in evaluating expansions outside this region. The euphoria that followed the technology around the turn of the millennium has now been followed by proven business models. Schibsted is engaged in several of these, notably within on-line newspapers, on-line classified markets, e-commerce, online peer-to-peer merchandizing, consumer and business oriented mobile products, as well as within the rapidly growing free, commuter-oriented newspapers. aftonbladet.se, vg.no, aftenposten.no, FINN, Adexalliance, Inpoc, Blocket, BokKilden, 20 minutes, Scandinavia Online (sold in 2001) are examples of successful initiatives arising within or acquired by Schibsted over the last years. Schibsted has been and will continue to be active in terms of sourcing, selecting and developing new business opportunities, and spreading these to existing start-up operations. Priority is given to business ideas and products that complement our existing portfolio, thereby building on our established brands and market positions. Furthermore, priority is given to projects in our home markets, which in this context include Spain, France and Switzerland in addition to the Nordic and Baltic countries. SCHIBSTED TELECOM Schibsted Telecom showed highly positive development in turnover and market share in There are two business areas: ASP delivers infrastructure to media customers, terminal suppliers and operators. Inpoc is Schibsted s own mobile brand for end users. The Group s turnover rose by 122% to NOK 122 million. The loss was reduced by 83 percent. The operating loss was NOK 6 million, compared with a loss of NOK 37 million in The overall market for mobile content services enjoyed strong growth in the period. In Norway, this market is currently worth NOK 615 million, which is an increase of over 50 percent on 2002 and twice that of the radio advertising market, for example. Both business areas are growing, but the Inpoc channels have been particularly successful. Inpoc has over 600,000 members in Norway and Sweden. Its website is on the list of the top 25 most visited sites in Norway and over 130,000 people receive Inpoc's own magazine. The Group is now established in Denmark. The Company is constantly developing new services based on state-of-the-art technology and the needs of mobile people. New JAVA and MMS applications will be launched in BOKKILDEN Bokkilden is Norway s leading online bookstore and offers more than 1.6 million titles, most of them in English. Turnover in 2003 was just over NOK 30 million. The number of visits, members and the average order value are all increasing. Bokkilden has a strong position among women, who account for 50 percent of the customer base. E-commerce in Norway is expanding and, having been present since the advent of commercial Internet, Bokkilden 80% 60% 40% 20% 0% Jan. Feb. Mar. Apr. Mai. Jun. is considered one of the leading companies in e-commerce in general. Bokkilden is in the process of converting to a new technical platform, and will be launching Nye Bokkilden in May Nye Bokkilden will provide more automated e-commerce processes, better tools for personalisation and improved userfriendliness. Jul. Aug. INPOC MARKET SHARES SMS NORWAY Sept. Okt. Nov. Des.

53 >> 49 MANAGEMENT DEVELOPMENT For a media group, future competitiveness and the capacity for renewal are closely associated with development of the organisation and attracting talented new individuals. Schibsted s future success depends on the Group attracting top talents, developing the best managers and ensuring that employees skills match the requirements of the changed media market. MANAGEMENT AND TALENT DEVELOPMENT Schibsted s goal is to be Scandinavia s most attractive media group to talents, managers and employees. Major initiatives have been launched to ensure that the Group achieves its goals in this area. New talents and management at all levels in the subsidiaries are the target groups. The intention is to assist recruitment by identifying new management candidates, developing individual managerial skills, increasing strategic understanding and creating meeting places for the development of experiences and ideas. Schibsted is basing these initiatives on clear humanistic values. At the same time, Schibsted is focusing on the values of a performance culture. These values require individuals to stretch themselves, set high quality and production goals and strive for constant improvement. SCHIBSTED MANAGEMENT TRAINEE PROGRAMME AND SUMMER INTERNSHIP Schibsted has two programmes which help to secure access to young talents. These are the Schibsted Management Trainee Programme, which was initiated in 1997 and Summer Internship, which is now entering its second season. Each year under the trainee programme, young talents from the top university and college environments in Scandinavia are recruited to a two-year programme. The idea is for these candidates to hold managerial positions in Schibsted companies during the course of four to five years and to develop the potential to occupy a top management job during their career. Recruitment takes places twice a year, in spring and autumn. Summer Internship gives young people who are studying the opportunity to work in one of the subsidiaries and to get to know Schibsted over a six-week period in July and August. Recruitment to this programme takes place in spring For more information about these programmes, please visit SCHIBSTED MIDDLE MANAGEMENT PROGRAMME AND MANAGEMENT PROGRAMME As part of its efforts to develop and retain good managers, Schibsted arranges two management development programmes at Group level. These are the Middle Management Programme and the Management Programme. Both editorial and administration managers participate in the programmes and all the business areas are represented. The programmes last for one year and focus on management, the Schibsted Group and strategic challenges faced by the media sectors. The Group is keen to recruit women to the management and talent programmes. COMPETENCE Few industries have undergone so many changes in the last decade as the media industry. The establishment of new channels for media content, such as mobile phones, broadband, Internet, free newspapers and commercial TV have revolutionised the market in just a few years. A market in such rapid change requires new skills, both from managers and employees. This calls for increased flexibility and professionalism in many areas. For this reason, Schibsted has in recent years concentrated increasingly on skills development in brand management, product development, market analyses, advertising sales and organisational development. The Group has established network and working groups, which are important tools in ensuring best practice among Schibsted companies. Changed competence requirements have been a key element in Schibsted s management programmes and in the Group s management meetings in 2003, and will continue to be in years to come.

54 >> 50 SHAREHOLDER INFORMATION Schibsted s shareholders shall over time take part in the Company s value creation by receiving a competitive return on their investment through a combination of an increase in the share price and dividends. TROND BERGER EXECUTIVE VICE PRESIDENT EECONOMY/FINANCE That was the shareholder strategy Schibsted adopted, in accordance with the Board s resolution of 1992 when the Company was listed on the Oslo Stock Exchange. The objective is linked to the goal of financing the Group s investment needs without obtaining new capital. A dedicated and active management and investor relations department is in daily contact with the investor market in order to provide the market with relevant and timely information, thus ensuring that the Schibsted share is correctly priced. Contact with Norwegian and international investment markets is a high priority for Schibsted. Our objectives are to increase knowledge about the Company, to establish confidence in Schibsted among investors and to increase the liquidity of the share. Schibsted s development is followed by the leading brokerage houses in the Nordic countries, as well as international ones. Schibsted s goal is to achieve analytical coverage from a wide range of brokerage houses. Communication with international investors is important to Schibsted and meetings are held on a regular basis in Europe and the United States. Schibsted s website is an important tool in the company s communications with the stock market. All financial information relating to Schibsted is made public in the form of presentations, quarterly and annual reports, stock exchange notifications etc. and on the company s home page. As a media company with a major focus on online activities, it is Schibsted s aspiration to have websites of the highest quality, and the Group s presentation of information to the market has won awards on several occasions. DIVIDEND The Group s financial results for 2003 were very good, with an equity ratio increasing to approximately 37 percent. The Board of Directors will request the Annual General Meeting to approve a dividend of NOK 3,00 per share, an increase of 50 percent on the previous three years. The dividend ratio of 43 percent is slightly below Schibsted s dividend level of recent years. The objective is to maintain a stable, high dividend, which at least corresponds to the distribution of the last three years. The dividend must be competitive with other shares on the Oslo Stock Exchange. In periods of intensive investment, it is the company s objective that the dividend from Schibsted ASA will remain at a FINANCIAL CALENDAR LARGEST SHAREHOLDERS AS OF 31 DECEMBER 2003 Date Time 1 st Quarter Accounts 2004 Presentation 6 May Annual General Meeting 6 May Conference Call 6 May nd. Quarter Accounts 2004 Presentation 12 August Conference Call 12 August rd Quarter Accounts 2004 Presentation 4 November Conference Call 4 November Number of shares Ownership (%) Nominee 1 Blommenholm Industrier AS ,11 2 Fidelity Funds ,93 3 Folketrygdfondet ,20 4 State Street Bank & Trust Co ,31 x 5 Marathon Asset Management ,94 6 JP Morgan Chase Bank ,94 x 7 Mellon Bank ,90 x 8 Orkla ASA ,32 9 JP Morgan Chase Bank ,27 x 10 Vital Forsikring ASA ,23 Foreign ownership 42,6 % Number of shareholders Total number of shares outstanding Of which own shares

55 >> 51 SHAREHOLDER INFORMATION Feb 03 Mar 03 Apr 03 Mai 03 Jun 03 Jul 03 Aug 03 Sep 03 Okt 03 Nov 03 Des 03 Jan 04 Feb 04 Mar 04 SHARE PRICE DEVELOPMENT 2003 Schibsted Norway OSE Benchmark Indes OSBEX Europe Stoxx Media Index steady, high level for shareholders. The dividend will be paid on 27 May 2004 to registered shareholders on 6 May 2004, the date of the Annual General Meeting. SHARE PRICE DEVELOPMENT Schibsted s shares are listed on the Oslo Stock Exchange. At the start of 2003, the share price was NOK By the end of the year it had risen by as much as 58% to NOK In the same period, the Oslo Stock Exchange Benchmark Index (OSEBX) increased by approx. 48 percent. The lowest price at which the Schibsted share was traded was NOK on 11 February, while the highest was NOK on 30 October. After a general slump in media share prices in 2002, the sector experienced an upturn in 2003, spurred on by generally brighter economic prospects. The average number of shares traded per day in 2003 was approximately 147,000, which is 29 percent up on 2002 and on a par with Foreign ownership at the end of 2003 stood at 43 percent, against 39 percent at the start of the year. The number of shareholders was 5,544 at the end of the year, compared with 5,507 the previous year. SHARE REPURCHASE The Annual General Meeting on 7 May 1998 authorised the Board of Directors to repurchase shares in Schibsted ASA. The Annual General Meeting on 7 May 2003 decided to extend the share purchase authorisation, limited to 6,925,000 shares. In 2003, Schibsted repurchased 405,000 shares, but sold 47,482 of these to the Schibsted Employees Share Purchase Scheme. At the end of the year, the number of own shares was 1,490,518. EMPLOYEE STOCK PROGRAM Schibsted believes that incentive schemes are important in attracting and retaining skilled employees. Various incentive schemes give employees the opportunity to take part in the process of value creation within the Group. In 2003, Schibsted s employees were again given the opportunity to purchase shares worth NOK 7,500 at a 20% discount, in accordance with Norwegian tax laws. Around 19 percent of those who received the offer accepted in 2003, compared with 17 percent in The price increase in the months before the offer was probably behind the higher take-up for the scheme. DIVIDEND PER SHARE (NOK) Year Div. 1,15 1,30 1,50 1,75 1,75 1,75 2,00 2,00 2,00 3,00 RISK AMOUNT PER SHARE AS OF 1 JANUARY (NOK) Year RISK amount 5,16 4,31 4,25 4,96 6,23 1,98 1,68 4,79 1,19 3,27

56 >> 52 SCHIBSTED FINANS Schibsted Finans AS is the Group s internal bank, responsible for external borrowings and investments. In addition, Schibsted Finans is responsible for the Group s foreign exchange and interest-rate management. At the end of 2003, the Group s interest-bearing debt amounted to NOK 1.6 billion, of which NOK 900 million was in bonds issued in autumn 2003, (where NOK 600 million as a four-year bond with fixed interest rat of 4,98 percent and NOK 300 million as a threeyear bond with floating interest). The bonds represent a new source of financing for Schibsted, which relieves the pressure on the banks. The issuance of these bonds has also opened up routes to the certificate market. In addition, Schibsted Finans has two loans with the Nordic Investment Bank. In December 1996, Schibsted Finans entered into a loan agreement of USD 32 million. The loan has been converted to NOK 206 million. In November 1999 Schibsted Finans entered into a 10-year loan agreement of EUR 25 million. The loans will be repaid in full in 2008 and 2009 respectively. In July 1998, when Schibsted acquired a majority holding in Svenska Dagbladet Holding AB, it also became the majority owner of Tidningstryckarna Aftonbladet Svenska Dagbladet AB and Fastighets AB Tidningsfabriken. These two companies have external leasing agreements and loans totalling SEK 339 million. Schibsted Finans set up a milticunency revolving loan totalling USD 300 million in October In October 2002 and 2003, the facility was reduced by USD 60 million under the agreement, and the facility is currently USD 180 million. The facility is provided by a syndicate of nine Norwegian and international banks and has a maturity of seven years. The facility, which was obtained on very favourable terms, was established in order to provide the Group with financial flexibility. At the end of the year, there were no draw downs under facility. The facility expires in autumn 2004 and Schibsted is well underway towards replacing it with a new five-year facility. The refinancing risk is considered to be negligible, and the new facility will probably be in place before the end of April The Schibsted Group s financial strength improved in 2003, with the equity ratio starting the year on 34.1 percent and closing on 37 percent. LIQUIDITY The Schibsted Group has a target for total liquidity reserves to represent a minimum of 10% of the next 12 months expected operating revenues. This target was reached on 31 December 2003, when the liquidity reserve amounted to NOK 2 billion. Liquidity was considerably improved in autumn 2003, following the issuance of two bonds totalling NOK 900 million. Surplus liquidity is, for the most part, placed in the Group cashpool in Danske Bank or invested in shortterm interest rate instruments and money market funds. FINANCIAL RISK MANAGEMENT INTEREST-RATE EXPOSURE When the bonds were issued in autumn 2003, Schibsted decided to fix the interest rate of 4.98 percent to a four-year bond of NOK 600 million. In the first half of 1999, Tidningstryckarna Svenska Dagbladet Aftonbladet AB entered into a sixyear lease egreement with fixed interest rates to finance the printing presses totalling SEK 194 million. In April 1997, Schibsted Finans entered into a 10-year NOK 100 million 7% interest-rate cap, thereby partly protecting the Group against a possible rise in interest rates. These contracts headges the interes rate for approx. 50 percent of the Group s liabilities for three to fore years. Schibsted has substantial pension liabilities which, unlike interestbearing liabilities, are affected positively by an increase in the interest rate, because the discount rate is higher. Correspondingly, the pension liabilities are negatively affected in the case of a fall in interest rates. This means the Group s interestrate exposure in interest-bearing liabilities and pension liabilities will partly offset each other in the event of interest rate changes. This therefore reduces the need to hedge the interest rate on interest-bearing long-term debt. CURRENCY EXPOSURE Through activities in Sweden, Denmark, Estonia and on the continent the Group is exposed to change in foreign exchange rates. The Group uses dept denominated in foreign currencies and forward contracts in order to reduce this exposure. Schibsted previously entered all foreign exchange gains and losses relating to foreign-currency receivables and liabilities in the accounts as they incurred. With effect from 2003, currency gains and losses relating to liabilities which secure investments in foreign units are booked as translation differences, and entered under equity. The change in accounting practice means a considerable reduction in the Group's posted currency gains and losses, due to a reduction in accounting currency exposure.

57 >> 53 SCHIBSTED EIENDOM Schibsted Eiendom manages the Group s properties. Up to December 2002, most of Schibsted s buildings in Norway were owned directly or through subsidiaries of Schibsted. On 31 December 2002, Entra Eiendom purchased a share of Akersgaten 32, as well as Akersgaten 34, 36 and 51 and Apotekergaten 6. At the same time, Entra Eiendom took over the company Schibsted Drift. Entra Eiendom is sub-leasing Apotekergaten 8 from Aftenposten and three floors of Akersgaten 55 from Schibsted Eiendom. In addition, Schibsted Eiendom is renting eight floors from Entra Eiendom in Biskop Gunnerusgaten. 14. These are being used by Aftenposten. At year-end, all the office properties were fully let, mainly to companies in the Schibsted Group. The industrial premises Stålfjæra 5 in Oslo have been released for sale. Entra Eiendom Service AS is responsible for the day-to-day management of the Group s properties in Norway. This includes reception services, security, management and ongoing maintenance. Schibsted Eiendom AS, 31 December 2003 Total Addresses, owned premises m 2 Tenants Akersgaten 55, Oslo VG, Schibsted Eiendom / Entra Eiendom *), and others. Apotekergaten 10, Oslo Schibsted ASA, Schibsted Telecom Gildi str. 1 Tartu Eesti Meedia offices Jenagade 22, København Metronome Studios, Metronome Productions TV3 DK, and others Sandakerveien 121, Oslo Schibsted Trykk Skjærvaveien 24, Strømmen Bladkompaniet Stålfjæra 5, Oslo Vacant Tähe str. 133 Tartu Eesti Meedia offices/printing plant Vandagatan 3, Akalla, Stockholm Tidningstryckarna Total Of which Schibsted owns Offices, production facilities and warehouses Total Addresses, owned premises m 2 Tenants Apotekergt.12/Pilestredet 12,Oslo 4550 Schibsted-Forlagene Arenavägen - Globen City, Stockholm Aftonbladet Biskop Gunnerusgt. 14, Oslo *) Schibsted Eiendom/ Aftenposten Gullhaug Torv 3, Oslo *) Nydalen Studios, Riksteateret Film Teknikk Norge, Aftenposten, Samferdselsetaten Mäster Samuelsgt 56, Stockholm Svenske Dagbladet Maakri 23, Tallinn Eesti Meedia Nydalsveien 17, Oslo (Lager) *) 900 Nydalen Studios *) Schibsted Eiendom AS sub-lets premises to the tenants.

58 >> 54 ARTICLES OF ASSOCIATION (Last changed at the ordinary Annual General Meeting May 7th 2003) 1 Name The company is a public limited company with the name Schibsted ASA. 2 Registered office The company s registered office of business is in Oslo, Norway. 3 Objectives The objective of the Company is to carry out information and publishing activities and commercial activities related thereto. The shareholders shall arrange the Company s information and publishing business activities in a manner which fully secures the editorial freedom and integrity of Aftenposten AS and Verdens Gang AS in accordance with the Articles of Association of these companies. 4 Share capital The Company s nominal share capital is NOK 69,250,000 pro rated on 69,250,000 shares each of NOK 1,-. All shares are fully paid up and registered by name. The Company s shares shall be registered in the Norwegian Registry of Securities. 5 Transferability The Company s shares are transferable subject to the restrictions set out in 6 below. Voting rights in respect of shares that have been transferred may be exercised at the earliest one week after the share transfer has been registered in the Norwegian Registry of Securities. If the acquisition of shares requires a concession, voting rights in respect of the shares requires that the concession is granted, unless the Company s Board of Directors has already formally recommended that the concession is granted. 6 Restrictions on ownership and voting rights No shareholder may own or vote at the general meeting in respect of more than 30% of the shares. In addition to a shareholder s own shares, shareholdings which are owned or acquired by the following are included: a) the shareholder s spouse, minor children or persons with whom the shareholder has a common household b) companies where the shareholder has an influence as specified in 1-2 of the Norwegian Company s Act of 1976 c) companies within the same group of companies as the shareholder, and d) anyone with whom the shareholder has a binding collaboration with regard to the exercise of their rights as shareholders. 7 Changes in the Articles of Association Resolutions concerning changes in the Articles of Association, the sale of shares in subsidiaries and voting concerning changes in the Articles of Association of subsidiaries, shall be taken by the annual general meeting and require the support of more than _ of the share capital represented at the annual general meeting. This is also required for private placements, demergers and mergers as well as the transfer of Aftenposten s and Verdens Gang s publishing rights. 8 Board of Directors The affairs of the company shall be governed by a Board of Directors of 11 members of whom 4 shall be elected by and among the employees and 7 members by the shareholders. Shareholders owning 25% or more of the Company s share capital shall have the right to appoint one of the Board members elected by the shareholders. Board members shall be elected for 2 years though subject to an election arrangement to secure that the service period does not expire simultaneously for all shareholders board members. 9 Execution of documents The Chairman of the Board and one of the other members of the Board of Directors may jointly sign for the Company. The Board may grant power of procuration. 10 Annual General Meeting 1. In the ordinary Annual General Meeting, the following matters shall be acted upon: 1. Adoption of the financial statements (profit and loss account and balance sheet), resolution as to the application of the years profit or coverage of deficit pursuant the balance sheet adopted. 2. Adoption of the consolidated accounts (profit and loss account and balance sheet). 3. Election of an Election Committee at the end of the service period. The Election Committee shall consist of 3 members and one deputy. The chairman of the Election Committee is elected by the General Meeting. The Election Committee is elected for 2 years. The Election Committee shall among others nominate shareholders board members and their deputies whenever their respective service period expires or a by-election is needed. As far as possible, the Election Committee shall announce its nominations in the shareholders notice of the Annual General Meeting. The Election Committee propose remunerations to the members of the Board of Directors. The proposal shall be made in advance for a period of one year counting from the Annual General Meeting. The Election Committee may pass opinions on, and may put forward proposals to the General Meeting, in matters regarding the Board of Directors size, composition and working conditions, as well as matters regarding the Company s auditor, including proposals regarding the election of the Company s auditor and the auditor s remuneration. 4. Election of shareholders Board members and deputies whenever their respective service period expires. 5. Other matters which by law or the Company s Articles of Association fall within the scope of the Annual General Meeting.

59 >> 55 Annual Report Schibsted Group: >>56 Income statement >>57 Balance sheet >>58 Cash flow statement >>59 Notes to the consolidated financial statements Schibsted ASA: >>78 Income statement >>79 Balance sheet >>80 Cash flow statement >>81 Notes to the parent company financial statements >>87 Auditor s report

60 >> 56 SCHIBSTED ANNUAL REPORT 2003 INCOME STATEMENT SCHIBSTED GROUP (NOK MILLION) NOTE Operating revenues 5, Raw materials, work in progress and finished goods 7 (1 774) (1 730) (1 755) Personnel expenses 8 (2 591) (2 423) (2 489) Depreciation and amortisation 12 (354) (375) (391) Other operating expenses 9 (3 057) (2 795) (3 065) Operating profit (loss) before goodwill and other revenues and expenses Amortisation and write-downs goodwill 12 (61) (63) (85) Other revenues and expenses 4 (17) 8 (131) Operating profit (loss) Income from associated companies (67) (338) Financial income Financial expenses (146) (222) (248) Net financial items 10 (54) (156) (105) Profit (loss) before taxes (387) Taxes 11 (197) (115) (36) Net income (loss) (423) Net income (loss) attributable to minority interests Net income (loss) attributable to majority interests (431) Earnings per share (NOK) 3, (6.28) Earnings per share diluted (NOK) (6.28) Oslo, 25. March 2004 The Board of Directors of Schibsted ASA Ole Jacob Sunde Tinius Nagell-Erichsen Alexandra Bech Gjørv Lars M. Berg Styrets formann Styrets viseformann Berit Bjerg Monica Caneman Hilde Harbo Cato A. Holmsen Hakon Kjernsmo Gunnar Nordby Jan Reinås Kjell Aamot Konsernsjef

61 >> 57 SCHIBSTED ANNUAL REPORT 2003 BALANCE SHEET AT 31 DECEMBER SCHIBSTED GROUP ((NOK MILLION) NOTE ASSETS Deferred tax assets Goodwill and other intangible fixed assets Intangible fixed assets Tangible fixed assets Investments in associated companies Investments in other shares Other financial fixed assets Financial fixed assets Fixed assets Inventories Receivables Investments Cash and bank deposits Current assets Total assets EQUITY AND LIABILITIES Share capital Own shares (1) (1) (1) Share premium reserve Paid in capital Retained earnings Minority interests Equity Deferred tax liabilities Pension liabilities Other provisions Provisions Interest bearing long term debt Other long term liabilities Long term liabilities Current liabilities Total equity and liabilities

62 >> 58 SCHIBSTED ANNUAL REPORT 2003 CASH FLOW STATEMENT SCHIBSTED GROUP ((NOK MILLION) NOTE CASH FLOW FROM OPERATING ACTIVITIES Profit (loss) before taxes (387) Income from associated companies (34) Dividends received from associated companies Taxes paid (179) (102) (229) Sales losses / (gains) fixed assets 2 (125) (24) Depreciation, amortisation and write-downs intangible and tangible fixed assets Write-downs financial fixed assets Change in working capital (13) (90) (42) Cash flow from operating activities CASH FLOW FROM INVESTING ACTIVITIES Investments in intangible and tangible fixed assets (263) (248) (387) Payments for acquisition of subsidiaries, net of cash acquired 26 (180) (11) (68) Proceeds from sale of intangible and tangible fixed assets Proceeds from sale of subsidiaries, net of cash sold (2) 3 - Investments in / sale of equity investments (18) (122) 72 Other investments / sales 47 (72) 33 Cash flow from investing activities (410) (50) (335) Cash flow before financing (37) CASH FLOW FROM FINANCING ACTIVITIES New long term interest bearing debt Repayment of long term interest bearing debt (1 101) (400) (41) Minority s contribution and withdrawal of capital 2 (7) 2 Repurchase / sale of own shares (22) (16) (71) Dividends paid (135) (137) (138) Cash flow from financing activities (321) (560) 108 Cash flow for the year 223 (21) 71 Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December

63 >> 59 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS KONSERN NOTE 1. Description of accounting principles CONSOLIDATION The consolidated financial statements are prepared in accordance with laws and regulations and generally accepted accounting principles in Norway and include Schibsted ASA and companies controlled by Schibsted ASA, directly or indirectly, either 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. Companies included in the consolidated financial statements are presented in note 27. Subsidiaries are consolidated 100 % in the consolidated financial statements from the date control is transferred to Schibsted 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 as separate lines in the income statement and balance sheet. Business combinations are treated in accordance with the purchase method except in cases where there is a real pooling of interests. Under the purchase method, the Group s cost of acquisition is allocated to identifiable assets and liabilities based on estimated fair value at the time of acquisition. Any excess of the cost of acquisition over the fair value of identifiable assets and liabilities is recorded as goodwill. Goodwill is amortised on a straight-line basis over expected useful life. Foreign subsidiaries that are included in the consolidated financial statements are all considered as independent units. In translating the financial statements from the respective foreign currencies to Norwegian kroner (NOK), assets and liabilities are translated using the closing rate at the date of the balance sheet while income and expenses are translated using the average exchange rate for the reporting period. Exchange differences are recognised in equity until disposal of the investment. Joint ventures are defined as operations in which Schibsted ASA participate directly or through subsidiaries, and where the participants through agreements have joint control over the operation. Joint ventures are accounted for using pro rata consolidation where the Group s share of income, expenses, assets and liabilities are recorded line by line in the consolidated financial statements. Associated companies are defined as companies where Schibsted ASA, directly or through subsidiaries does not have a majority interest but exercises significant management influence and has a significant ownership interest, normally %. Associated companies are accounted for using the equity method of accounting under which Schibsted recognises its share of the company s net income and gains or losses on sale on a separate line in the income statement. In the balance sheet the investment is recorded at cost adjusted for share of income and dividends received. ACCRUAL PRINCIPLES, CLASSIFICATION AND VALUATION Revenue recognition Advertising revenues are recognised when the ads are placed at full price less discounts. Subscription revenues are prepaid and recognised in income when the newspapers are delivered. Casual sales are recognised in income based on copies sold, i.e. copies delivered less returns. Barter agreements are recognised in income at market value at the time of the transaction. Market value is measured based on the value of the service delivered or received, depending on which service that can be most reliably measured. Income related to TV/film-productions performed over more than one accounting period (construction contracts) is recognised using the percentage-of-completion method of accounting. Under this method, income and profit are recognised as work under the contract progresses. Classification Assets and liabilities connected to the business cycle are classified as current assets or liabilities. Receivables and liabilities not related to the business 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 and bonds Shares and bonds classified as current assets are valued at the lower of cost or market value. Shares and bonds classified as fixed assets are valued at cost or at market value if market value is lower than cost and the decline in value is expected not to be temporary. Tangible and intangible fixed assets Tangible and intangible fixed assets are stated at cost less accumulated depreciation, amortisation and write-downs. Costs related to the development of software are capitalised as intangible assets when the asset is expected to have sustainable value. Costs include direct and indirect costs attributable to the development of the asset. The cost of assets constructed by the Group includes interest cost on expenditures during the construction period. Fixed assets with limited useful life are depreciated on a straight line basis over the estimated useful life of the assets. Normal repairs and maintenance are expensed as incurred. Major improvements are capitalised and depreciated over the remaining useful life of the asset. Environmental expenditures are expensed as they are incurred, unless the measures increase capacity, productivity, or the remaining useful life of the related facility. Tangible and intangible fixed assets are written down if the carrying value exceeds recoverable amount. Recoverable amount is the higher of net sales value and net present value of future cash flows expected to be generated. The write-down is reversed if the basis for the writedown is no longer present.

64 >> 60 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP 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. Assets held under financial lease agreements are capitalised and depreciated according to plan. The present values of lease payments are included in long term interest bearing debt, and the debt is reduced by the amount of lease payments made less the effective interest expense. Other lease agreements are classified as operational, and the annual rental fee is charged to expense as a leasing expense. Foreign currency Receivables and liabilities in foreign currencies are translated at the closing rate at the date of the balance sheet. Exchange gains and losses arising on liabilities and other financial instruments hedging a net investment in a foreign operation is recognised in equity until disposal of the investment. Other foreign exchange gains or losses are included in other financial income or expenses. Inventories Inventories are valued at the lower of cost or net realisable value. Accounts receivable Accounts receivable are valued at realisable value. Provisions are made for bad debts. Own shares Cost of acquisition and proceeds from sales of own shares are offset against equity. Pension cost Pension liabilities related to benefit plans are valued at the net present value of future pension benefits earned at the balance sheet date and calculated on the basis of assumptions for the discount rate, expected future wage growth and pension adjustments. Pension plan assets are valued at market value. Net pension liabilities on under-funded contracts are recorded as provisions, while the net assets of over-funded contracts are recorded in financial fixed assets. Net periodic pension cost, which is gross pension cost less estimated return on plan assets adjusted for amortisation of unrecognised gains and losses, is included in personnel expenses. Changes in pension liabilities due to amendments in the terms of pension plans are included in the measurement of net periodic pension cost over the average remaining pension-earning period. Changes in pension liabilities due to changes in and deviations from the calculation assumptions are included in the measurement of net periodic pension cost over the average remaining pension-earning period only if the accumulated effect exceeds 10 % of the larger of plan assets or projected benefit obligations. In the case of pension plans that are defined for accounting purposes as contribution plans, pension costs are expensed in line with the payment of pension premiums. Share based payment Any intrinsic value measured at grant date for options granted to employees are included in personnel expenses over the vesting period. Related social security costs are charged to expense over the vesting period. Income taxes Income tax expense is calculated from profit (loss) before taxes and includes current taxes and change in deferred taxes. Deferred tax assets and liabilities are calculated in accordance with the liability method. Deferred income tax is provided for all temporary 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 profit from expected future profits. Deferred taxes are not discounted. Restructuring costs Expenses related to restructuring and reorganisation of operations are recognised in accordance with the matching principle. Expenses not related to revenues in later periods are expensed as incurred. Expenses related to restructuring and reorganisation are considered to be incurred when the implementation plan is adopted and communicated. Other revenues and expenses Operating revenue and expense items of a non-recurring nature and of material importance to business areas are separated from other ordinary operating revenues and expenses and reported in a separate line in the income statement. 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. Cash flows statement The cash flows 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.

65 >> 61 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Note 2. Implementation of International Financial Reporting Standards (IFRS) The EU has resolved that from 2005 all listed companies in the EU have to prepare their consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). Under the EEA Agreement, Norwegian listed companies are subject to the same requirements and Schibsted will prepare its financial statements in accordance with IFRS as from The consolidated financial statements for 2004 will be prepared in accordance with laws and regulations and generally accepted accounting principles in Norway. Restated comparable figures for 2004 according to IFRS will be presented in the 2005 consolidated financial statements. Considerable changes have, and are still taking place, in relation to the accounting standards that are to be applied in the financial statements for This includes improvements in standards, convergence with US GAAP and preparation of standards in areas previously not regulated. When preparing the opening balance sheet in accordance with IFRS as per , there are several options regarding first-time adoption of IFRS, among other related to the extent to which previous business combinations are restated and the possibility of measuring fixed assets at other values than depreciated cost. Schibsted will until the transition to IFRS continue to identify effects on the income statement and balance sheet, make the required elections where IFRS grants exemptions from the basic requirement of full retrospective application, decide upon new accounting principles within IFRS and make the required changes to reporting systems and routines in order to meet the reporting requirements. Quantitative information about effects on the income statement and the balance sheet will not be communicated until it is possible to calculate such effects with sufficient degree of certainty. Based on preliminary analyses, the following areas have been identified as areas where the Group s financial statements may be effected by the implementation of IFRS: Goodwill Under IFRS, goodwill is not amortised. As under existing Norwegian practise however, goodwill will have to be written-down if the carrying value exceeds the recoverable amount. Share based payment Fair value, measured at grant date for options granted to employees will under IFRS have to be charged to expense over the vesting period. Generally accepted accounting principles in Norway have accepted that only the intrinsic value is charged to expense. Business combinations The requirements under IFRS to identify and separately recognise intangible assets acquired in business combinations may be stricter than current practise in Norway. The effect of this may be that a larger part of future acquisition cost will be allocated to identifiable intangible assets, and that goodwill will be reduced correspondingly. In connection with first-time implementation of IFRS there are limits the requirements to restate historical business combinations. Pension cost Accumulated actuarial gains or losses may be credited or charged to equity as per It is expected that IFRS will require more frequent changes in assumptions used for calculation of pension liabilities than what has been practise in Norway. Financial instruments / hedge accounting IFRS has stricter conditions to be met for hedging relationships to qualify for hedge accounting. The requirements related to documentation of hedging relationships and hedge effectiveness increases. There may also be other differences between IFRS and the accounting principles applied by Schibsted. The extent of deviations may be affected by which accounting principles Schibsted decides to apply within IFRS and by the elections Schibsted makes in areas where IFRS grants exemptions from the basic requirement of full retrospective application. Note 3. Significant transactions and other events Hedge accounting Schibsted has changed its accounting practice regarding foreign currency in With effect from 2003, all foreign exchange gains (losses) related to liabilities and other financial instruments used for hedging net investments in foreign units are recognised directly in equity until disposal of the investment. Previously, all such foreign gains and losses exchange were reported in net profit on a current basis. In order to facilitate comparison, figures for previous periods have been restated, see table below: (NOK MILLION) Net income (loss) reported in previous periods 188 (423) Change in net financial items (45) 0 Change in taxes 13 0 Net income (loss) 156 (423) Earnings per share (NOK) reported in previous periods 2.74 (6.28) Change in earnings per share (0.48) (0.00) Earnings per share (NOK) 2.26 (6.28) The change does not affect Group equity.

66 >> 62 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Investments in subsidiaries During 2003, NOK 191 million have been invested in shares in subsidiaries. The acquisitions are treated in accordance with the purchase method, and excess values of NOK 173 million, mainly goodwill, is recognised in the consolidated balance sheet in In the 4th quarter 2003, Schibsted, via FinnMer AB, acquired all the shares in Blocket AB, a Swedish company, for SEK 183 million. Blocket operates a classified advertisement service called and is Sweden s leading company in the field of buying and selling private vehicles and miscellaneous articles on the Internet. Through the subsidiaries FINN and Aftonbladet, Schibsted acquired in % of the shares in the Swedish company Byt Bil Nordic AB. An additional payment for the shares incurred in 2003 as a function of net profit in 2002/2003. The additional payment was accrued for in 2002 and paid during autumn In 2002 put-/call option agreements were entered into regarding the remaining 40 % of the shares. The exercise price is linked to fair value of the company at the time of execution. The option may be executed in a period of 2-4 years after signing the contract. In December % of the shares were sold to the management. 20 Minutes Per 3 March 2004, Schibsted entered into a contract increasing its ownership share in 20 Min Holding AG. Schibsted is paying between EUR 50 million and EUR 55 million for increasing the ownership share, from 41 % to approximately 98 %. 20 Min Holding AG publishes through subsidiaries in Switzerland and Spain free newspapers. Following these transactions, 20 Min Holding AG will own 100 % of the Spanish operations, 50.5 % of the Swiss operations, and 16 % of the French operations. Schibsted currently owns 34 % of the French operations directly, giving Schibsted a total control of 50 % of the French operations. From takeover, this purchase will lead to a full consolidation of 20 Min Holding AG, and the operations in France will be pro rata consolidated (50 %). In 4th quarter of 2003, 20 Min Holding AG sold 49.5 % of the shares in the Swiss operation to Express Zeitung AG based on an agreement entered into in the 1st quarter of Remaining shares are agreed sold to Express Zeitung AG within 1st quarter of The price to be paid for the remaining 50.5 % of the shares is dependent upon results in 2005 and In 2001, 20 Min Holding AG acquired % of the shares in the Spanish media company Multiprensa y Mas. Based on an existing option agreement 20 Min Holding AG will, through an investment of EUR 7.5 million purchase the remaining shares in the company during first half of Note 4. Other revenues and expenses Operating revenue and expense items of a non-recurring nature and of material importance to business areas are separated from ordinary operating revenues and expenses and reported in a separate line in the income statement. Other revenues and expenses consist of the following items: (NOK MILLION) Refund of pension funds Sweden Restructuring costs Norway (11) (73) (78) Restructuring costs Sweden (6) (14) (69) Gains on sale of fixed assets Gains on sale of subsidiaries etc Total (17) 8 (131) 2003 restructuring costs are related to the continued Profitability Program implemented in Additional provisions may be necessary in 2004 related to measures in Aftenposten, which will be communicated in the 1st quarter 2004 accounts. Note 5. Business area information Schibsted s operations are primary reported in four business areas. 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 the business areas. Allocation of revenues, expenses, assets and liabilities to business areas are based on the financial statements for these companies. All transactions between business areas are made at normal terms.

67 >> 63 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Financial statement items, allocated to business areas, are shown below: OPERATING REVENUES (NOK MILLION) Newspapers Subscription revenues Casual sales revenues Advertising revenues Other revenues TV / Film Other revenues Publishing Subscription revenues Casual sales revenues Advertising revenues Other revenues Estonia Subscription revenues Casual sales revenues Advertising revenues Other revenues Other operations / Eliminations Advertising revenues (3) (10) - Other revenues Schibsted Group Subscription revenues Casual sales revenues Advertising revenues Other revenues Total operating revenues OPERATING EXPENSES* (NOK MILLION) Newspapers (5 641) (5 350) (5 744) TV / Film (1 138) (1 054) (1 006) Publishing (310) (301) (297) Estonia (249) (215) (209) Other operations / eliminations (84) (28) (53) Schibsted Group (7 422) (6 948) (7 309) * Include raw materials, work in progress and finished goods, personnel expenses and other operating expenses. DEPRECIATION, AMORTISATION AND WRITE-DOWNS * (NOK MILLION) Newspapers (266) (280) (301) TV / Film (70) (67) (79) Publishing (13) (13) (14) Estonia (24) (29) (36) Other operations / eliminations (42) (49) (46) Schibsted Group (415) (438) (476) * Include depreciation and amortisation and amortisation and write-downs goodwill. OTHER REVENUES AND EXPENSES (NOK MILLION) Newspapers(17) (17) (73) (127) TV / Film Publishing - - (4) Other operations / eliminations - 81 (4) Schibsted Group (17) 8 (131)

68 >> 64 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP OPERATING PROFIT (LOSS) (EBIT) (NOK MILLION) Newspapers TV / Film Publishing Estonia 15 (2) (25) Other operations / eliminations (41) Schibsted Group ASSETS (NOK MILLION) Newspapers TV / Film Publishing Estonia Other operations / eliminations (1 343) (1 109) (1 121) Schibsted Group LIABILITIES (NOK MILLION) Newspapers TV / Film Publishing Estonia Other operations / eliminations (1 662) (1 562) (1 617) Schibsted Group INVESTMENTS IN INTANGIBLE AND TANGIBLE FIXED ASSETS (NOK MILLION) Newspapers TV / Film Publishing Estonia Other operations / eliminations Schibsted Group Note 6. Geographical information Operating revenues, assets and investments divided geographically, based on the location of the operations are shown below. Operating revenues divided by location of the customers do not deviate materially from operating revenues divided based on Group companies locations. OPERATING REVENUES (NOK MILLION) Norway Other Scandinavian countries Estonia Other areas Eliminations (4) - - Total Included in operating revenues is a press subsidy (Svenska Dagbladet) amounting to NOK 57 million in 2003, NOK 54 million in 2002 and NOK 57 million in Increased revenues in 2003 are partly explained by a change in foreign exchange rates, mainly a stronger SEK, amounting to NOK 200 million.

69 >> 65 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP ASSETS (NOK MILLION) Norway Other Scandinavian countries Estonia Other areas Eliminations (350) (213) (608) Total INVESTMENTS IN INTANGIBLE AND TANGIBLE FIXED ASSETS (NOK MILLION) Norway Other Scandinavian countries Estonia Other areas Total Note 7. Raw materials, work in progress and finished goods Raw materials, work in progress and finished goods consist of the following items: (NOK MILLION) Raw materials and purchased goods TV / Film production expenses Total Increased raw materials, work in progress and finished goods in 2003 are partly explained by a change in foreign exchange rates, mainly a stronger SEK, amounting to NOK 30 million. Note 8. Personnel expenses and average number of employees Personnel expenses consist of the following items: (NOK MILLION) Salaries and wages Social security costs Net pension cost (note 21) Other personnel expenses Total Average number of employees Increased personnel expenses in 2003 are partly explained by a change in foreign exchange rates, mainly a stronger SEK, amounting to NOK 50 million. The Board of Directors and Schibsted Group Management Schibsted ASA has paid NOK 1,998,000 in remuneration to the Board of Directors. Members of the Board have also received a total amount of NOK 240,000 in director s fees from subsidiaries. Schibsted ASA has paid NOK 2,942,000 in salaries, including cash bonus and director s fees from subsidiaries to the Chief Executive Officer. He has also received NOK 188,000 in other taxable remuneration and NOK 875,000 in pension plan payments. The other members of Group Management have received NOK 6,261,000 in salaries, including cash bonus and director s fees from subsidiaries. They have also received NOK 450,000 in other taxable remuneration and NOK 1,555,000 in pension plan payments. Under certain conditions the company is obliged to pay termination compensation to the CEO and the Executive Vice Presidents amounting to 24 and 18 months salary, respectively. The CEO may choose to leave his position at the age of 65 and receive a pension amounting to 90 % of his salary in the period years. The Chairman of the Board has no remuneration if he chooses to leave his position. Remuneration to the Deputy Chairman of the Board is deducted from his pension benefits earned in his previous position in the Group. Schibsted ASA s Group Management has an incentive programme that is divided in two, a bonus programme related to achievement of financial goals and an option programme. Annual cash bonus for the Group Management is maximum four months salaries. Schibsted ASA has in 2003 paid NOK 375,000 in cash bonus to the Chief Executive Officer and NOK 737,000 to the Executive Vice Presidents. The Group Management option programme was established in Each year s options are earned over three years and must be executed within a year after completed earning period. The strike price for options granted in 2001, 2002 and 2003 was NOK 100, NOK 93 and NOK 98 respectively. Options granted in 2000 were not executed in The option programme comprises the following persons: CEO Kjell Aamot, 30,000 shares p.a., Executive Vice Presidents Trond Berger, Sverre Munck, Jan Erik Knarbakk and Birger Magnus, 15,000 shares p.a.

70 >> 66 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP The Auditors The Group auditors 2003 fee consists of: (NOK 1 000, excl. VAT) Statutory Other Tax Other audit confirmations assistance services Total Schibsted ASA Ernst & Young AS Schibsted Group Ernst & Young AS Other auditors Total Note 9. Other operating expenses Other operating expenses consist of the following items: (NOK MILLION) Distribution Commissions Rent, maintenance, office expenses and energy PR, advertising and campaigns Printing contracts Editorial material Professional fees Travelling expenses Write-downs intangible and tangible fixed assets 3-19 Other operating expenses Total Increased other operating expenses in 2003 are partly explained by a change in foreign exchange rates, mainly a stronger SEK, amounting to NOK 100 million. Note 10. Net financial items Financial income and expenses consist of the following items: (NOK MILLION) Interest income Interest expense (71) (115) (140) Net foreign exchange gains (losses) 1 (2) 12 Net other financial expenses (18) (72) (32) Net financial items (54) (156) (105) Net other financial expenses mainly include income from financial investments through gains and losses on sale, change in unrealised losses and dividends received. Note 11. Taxes Tax expenses consist of the following items: (NOK MILLION) Current income taxes Deferred income taxes 39 (29) (62) Effect hedge accounting foreign currency 19 (13) - Taxes

71 >> 67 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Net deferred tax liabilities (assets) consist of the following items: (NOK MILLION) Taxable (deductible) temporary differences: Current assets and liabilities (123) (135) (125) Prepaid pension cost Accrued pension liabilities (427) (441) (335) Other long term differences Total temporary differences (72) (190) (122) Unused tax losses (601) (604) (574) Total differences (673) (794) (696) Calculated net deferred tax liabilities (assets) (188) (221) (195) Unrecognised deferred tax assets Net deferred tax liabilities (assets) (29) (64) (32) Of which deferred tax liabilities Of which deferred tax assets (87) (98) (65) Change in net deferred tax liabilities (assets) 35 (32) (58) Approximately 95 % of unused tax losses are related to operations located outside Norway. The main part of the losses expires after The change in net deferred tax liability (asset) is allocated between the following items: (NOK MILLION) Ordinary income tax expense 39 (29) (62) Effect of acquisitions and sales of subsidiaries etc. (4) (3) 4 Change in net deferred tax liabilities (assets) 35 (32) (58) Below is set out the differences between profit (loss) before taxes and the basis for income taxes: (NOK MILLION) Profit (loss) before taxes (387) Amortisation and write-downs goodwill without tax effect Change in basis for unrecognised deferred tax assets Difference income and tax basis from associated companies (80) 3 (157) Other permanent differences Basis for income taxes Taxes The basis for income taxes may deviate materially from profit (loss) before taxes. The reasons for such deviations are: Amortisation and write-downs of goodwill that only to a limited extent affects the tax basis. Deferred tax assets are recognised only if it is expected that the benefit can be realised through sufficient taxable income from expected future profits. The basis for income taxes is increased by new losses and temporary differences for which no deferred tax assets are recognised. The basis for income taxes is reduced by the effect of previously unrecognised tax assets being utilised. Unrecognised deferred tax assets as per December 31, 2003 are mainly related to Svenska Dagbladet and other subsidiaries in Sweden. Deferred taxes are not provided for retained earnings of Norwegian associated companies. For foreign associated companies, deferred tax assets are recognised provided that it is expected that the benefit can be realised through sufficient taxable income from future profits or through sale of the investment. Other permanent differences such as non-deductible expenses and non-taxable revenues.

72 >> 68 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Note 12. Intangible and tangible fixed assets OTHER CONSTRUC- EQUIPMENT, INTANGIBLE BUILDINGS TION IN FURNITURE, (NOK MILLION) GOODWILL ASSETS AND LAND PROGRESS MACHINERY VEHICLES TOTAL Cost at 31 December Reclassifications (42) 42 (10) - Additions Disposals at cost - (4) (67) - (32) (489) (592) Translation differences Cost at 31 December Acc. depreciation, amortisation and write-downs at 31 December 2003 (457) (296) (346) - (505) (689) (2 293) Book value at 31 December Depreciation and amortisation 2003 (61) (42) (64) - (104) (144) (415) Write-downs 2003 (note 9) - (3) (3) Depreciation method Straight line Straight line Straight line Straight line Straight line Estimated useful life years 3 10 years years 5 20years 3 10 years Other intangible assets include film rights. Film rights with a limited license period and self-produced films are amortised over a three-year period according to a distribution. Film rights with an unlimited license period are amortised with a proportional share of revenues. Tangible fixed assets include assets held under financial lease agreements. The related tangible fixed assets have a cost of NOK 326 million and a book value of NOK 199 million. Depreciation in 2003 amounts to NOK 25 million. The Schibsted Group has operating lease agreements mainly related to office buildings and cinemas. Annual rent related to agreements in force is approximately NOK 150 million, of which approximately NOK 60 million relates to rental agreements in Norway, NOK 83 million rental agreements in other Scandinavian countries and NOK 7 million rental agreements in Estonia. The table below specifies goodwill by company: ACCUMULATED AMORTISATION BUSINESS AMORTISATION AND WRITE- BOOK AMORTISATION (NOK MILLION) AREA ACQUIRED PERIOD COSTO.A DOWNS VALUE 2003 Aftonbladet Hierta AB Newspaper year 338 (141) 197 (18) Blocket AB Newspaper year 162 (1) 161 (1) AS Eesti Meedia Estonia year 139 (38) 101 (7) Sandrew Metronome AB TV / Film year 112 (34) 78 (6) Dine Penger AS Publishing year 98 (38) 60 (5) Bladkompaniet AS Publishing year 75 (19) 56 (4) Other years 312 (186) 126 (20) Total (457) 779 (61) Goodwill is amortised over the useful life. Useful life is estimated based on the financial assessments made in connection with the valuation of each company acquired. These assessments are normally based upon the assumption that goodwill related to the acquired company has an expected useful life exceeding 5 years. Schibsted generally uses an estimated useful life of 20 years for companies that are considered to have strong market positions or which are of significant strategic importance.

73 >> 69 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Note 13. Investments in associated companies 2003 changes in book value related to investments in associated companies were as follows: BOOK - INCOME BOOK OWNERSHIP VALUE FROM VALUE 31 DECEMBER 31 DECEMBER NET ASSOCIATED DIVIDEND 31 DECEMBER (NOK MILLION) LOCATION 2003 COST 2002 ADDITIONS COMPANIES RECEIVED OTHER Minutes France SAS Paris 41 % (46) Minutes Holding AG Zürich 41 % 120 (174) (28) (202) Adresseavisen ASA Trondheim 32 % (10) 120 AS Harstad Tidende Harstad 49 % (1) 52 Bergens Tidende AS Bergen 24 % (5) 110 Fædrelandsvennen AS Kristiansand 25 % (8) 43 Pressens Morgontjänst KB Stockholm 50 % Scanpix Danmark A/S Copenhagen 49 % Stavanger Aftenblad ASA Stavanger 32 % (24) 92 TV 2 AS Bergen 33 % (20) 272 Other (9) 41 Total (68) Reclassified to other provisions (note 22) Book value investments in associated companies Excess values included in book value of investments in associated companies at 31 December, 2003 amounts to NOK 147 million and is mainly related to goodwill being amortised over the estimated useful life. Depreciation and amortisation in 2003 amounted to NOK 13 million. Note 14. Investments in other shares Investments in other shares consist of the following items: OWNERSHIP BOOK VALUE 31 DECEMBER 31 DECEMBER (NOK MILLION) ABC Startsiden AS 16,6 % 7 Asker og Bærums Budstikke ASA 10,2 % 21 Basefarm AS 15,0 % 4 Crossroads Loyalty Solutions AB 16,7 % 1 Datek Wireless AS 16,3 % 2 Digital Ventures II Ltd 3,0 % 6 Human Content AS 19,3 % 4 ivisjon AS 16,7 % 5 Telenor Venture II ASA 4,2 % 11 TV 2 Interaktiv AS 12,0 % 11 Other shares 7 Total 79 Market value related to Shares in Asker og Bærums Budstikke ASA NOK 48 million. There are no quoted market values related to other shares held.

74 >> 70 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Note 15. Joint Ventures Joint ventures are accounted for using pro rata consolidation. The Group s share of revenues, expenses, assets and liabilities are recorded line by line in the consolidated financial statements. Significant operations accounted for as joint ventures are specified below: OWNERSHIP/ SHARE OF CONTROL 31 DECEMBER 2003 LOCATION BUSINESS AREA Sandrew Metronome AB 50,0 % Stockholm TV / Film AS Ajakirjade Kirjastus (Estonian Magazine Group) 50,0 % Tallinn Estonia AS SL Õhtuleht 50,0 % Tallinn Estonia Finn Tech AS 50,0 % Oslo Newspaper Key figures for joint ventures included in the consolidated financial statements are presented below: SHARE OF SHARE OF SHARE OF SHARE OF OPERATING OPERATING OPERATING PROFIT BEFORE (NOK MILLION) REVENUES EXPENSES PROFIT TAXES Sandrew Metronome AB AS Ajakirjade Kirjastus AS SL Õhtuleht Finn Tech AS (1) (1) Other Total SHARE OF LONG TERM SHARE OF SHARE OF SHARE OF LIABILITIES AND CURRENT (NOK MILLION) FIXED ASSETS CURRENT ASSETS PROVISIONS LIABILITIES Sandrew Metronome AB AS Ajakirjade Kirjastus AS SL Õhtuleht Finn Tech AS Other Total Note 16. Other financial fixed assets Other financial fixed assets consist of the following items: (NOK MILLION) Prepaid pension cost (note 21) Receivables from joint ventures and associated companies Other long term receivables Total Receivables from joint ventures and associated companies consist mainly of loans given to 20 Min Holding AG.

75 >> 71 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Note 17. Inventories and receivables Inventories per 31 December, 2003 amounting to NOK 110 million in consist mainly of newsprint, books and videotapes. Receivables consist of the following items: (NOK MILLION) Accounts receivable Prepayments to suppliers Other receivables Total Other receivables include among others accrued revenues, receivables from public authorities and prepaid expenses. Note 18. Investments Investments consist of the following items: (NOK MILLION) Shares and equity funds Interest bearing investments Total Note 19. Cash and bank deposits Schibsted Group has a cash pool agreement with Danske Bank in which all the Norwegian subsidiaries and most of the Swedish subsidiaries are included. The cash pool system is created to optimise cash management within the Group. The Group has a bank overdraft limit of NOK 300 million. As at 31 December, 2003, this overdraft limit is not used. Note 20. Equity Changes in equity were as follows in 2003: SHARE PREMIUM RETAINED MINORITY TOTAL (NOK MILLION) SHARE CAPITAL OWN SHARES RESERVE EARNINGS INTERESTS EQUITY Equity at 31 December (1) Net income (loss) Dividends from Schibsted ASA (203) (203) Repurchase / sale of own shares (0) (22) (22) Dividends from subsidiaries (18) (18) Share issue and changed share of interrest interest in subsidiaries Translation differences and other Equity at 31 December (1) Share issue and changed share of interest in subsidiaries is related to a share issue in Scanpix Scandinavia AB and sale of shares in the subsidiaries FinnMer AB, Distribution Innovation AS and Byt Bil Nordic AB. The Annual Shareholders' meeting has authorised the Board of Directors to repurchase shares in Schibsted ASA limited to 6,925,000 shares. The Annual Shareholders Meeting on 7 May, 2003 approved an extension of the share repurchase authorisation for a period of 18 months. The Board of Directors will place a motion that this authorisation is extended until The Annual Shareholders meeting in 2005 on The Annual Shareholders meeting 6 May, Schibsted ASA has repurchased 405,000 shares in 2003 for a total of NOK 27 million. The reason for the repurchase is that the Board of Directors assesses the repurchase as a favourable investment and in order to optimize the Groups capital structure. Parts of the shares are acquired in order to be used in connection with the employees share programmes. In connection with employees being given the opportunity to purchase shares at a discounted price, 47,482 shares were sold to the Schibsted Employees Share Purchase Fund in the 3rd quarter of 2003 at a price of NOK 100 per share. Per 31 December, 2003 Schibsted held 1,490,518 shares at a cost of NOK 127 million. Schibsted has established a rolling options program targeted at key persons within the Group. The program includes the Group Management (see note 8) and Managing directors and Editors in Chief of Aftenposten and VG. Within this program 120,000 options have been

76 >> 72 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP issued in 2001, 105,000 in 2002 and 105,000 in Each year s options are earned over three years. In connection with the option program 60,000 shares were sold at 5 March, 2004 at a cost of NOK 100 per share. After the transaction Scibsted holds 1,430,518 own shares. Earnings per share are calculated using an average number of shares of 67,823,899 in 2003, 68,204,378 in 2002 and 68,689,425 in Average diluted numbers of shares outstanding is 67,851,552 in 2003, 68,204,378 in 2002 and 68,689,425 in In periods the market price for the allocated options has been higher than the strike price and implies that the options have a dilutive effect on earnings per share. The dilutive effect is immaterial, henceearnings per share and earnings per share, diluted are both NOK 6.92 (NOK 2.26). For additional information related to the Group s equity see Group functions and shareholder information on pages Note 21. Pension plans Norwegian companies within the Schibsted Group maintain their collective pension schemes with Vital. The plans are mainly defined benefit plans, but certain companies have established defined contribution plans. The individual companies policies related to defined benefit plans are approximately uniform. The main conditions are 30-years salaried employment to obtain full pension, approximately 66 % retirement pension from the age of 67, and spouse and child pensions. At 31 December, 2003 the pension plan had 2,386 (2,436) working members. In addition to the funded pension obligations, the Group has unfunded obligations. These obligations relate to persons not included in the pension scheme, pensions for salaries above 12G, AFP, early retirement pensions and uninsured disability pensions. The subsidiaries outside Norway have pension schemes based on local practise and regulations. These pension schemes are accounted for as defined contribution plans. Breakdown of net pension cost: (NOK MILLION) Service cost Interest cost Expected return on plan assets (95) (97) (101) Amortisation of actuarial (gains) losses and past service cost (4) (2) (3) Net pension cost defined benefit plans Net pension cost defined contribution plans Net pension cost Breakdown of net pension liabilities at 31.December: (NOK MILLION) Projected benefit obligation (1 905) (1 749) (1 711) Plan assets Calculated net pension liabilities (465) (334) (331) Unrecognised actuarial (gains) losses and past service cost 24 (118) (120) Net pension liabilities (441) (452) (451) Of which prepaid pension cost Of which accrued pension liabilities (447) (461) (462) Assumptions: Discount rate 6,0 % 6,0 % 6,0 % Expected return on plan assets 7,0 % 7,0 % 7,0 % Wage growth 3,0 % 3,0 % 3,0 % Inflation / social security base adjustment 2,0 % 2,0 % 2,0 % Pension adjustment 2,0 % 1,6 % 1,6 % Breakdown of plan assets at 31 December: Shares 13 % 11 % 23 % Short-term bonds 27 % 24 % 27 % Money market investments 9 % 22 % 13 % Real estate 12 % 11 % 11 % Long-term bonds 33 % 25 % 19 % Other 6 % 7 % 7 % Total 100 % 100 % 100 %

77 >> 73 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Actual return on plan assets (value-adjusted return in Vital) was in 2003 approximately 10 %, in 2002 approximately 1 % and in 2001 approximately 1 %. The Union of Graphic Workers at Verdens Gang AS, has instituted legal proceedings against Verdens Gang AS regarding the company s pension plan. The dispute is about what elements of wages that are to be included in the pension base. A potential legal decision will not be ready until the second half of 2004 at the earliest. Should the Union s views be accepted, and given that any change is applied also to other employees in Verdens Gang AS and given that the pension plan in other respects remain unchanged, the annual net pension cost may increase by approximately NOK 5-6 million. Projected benefit obligations may increase by approximately NOK 40 million. Note 22. Other provisions Other provisions consist of the following items: (NOK MILLION) Investments in associated companies (note 13) Other provisions Total Investments in associated companies included in other provisions are related to the shareholding in 20 Min Holding AG. The investment is included in other provisions as Schibsted is committed to cover its share of losses in 20 Min Holding AG. Note 23. Interest bearing long term debt Interest bearing long term debt allocated by lenders and currency: (NOK MILLION) VALUTA Den Nordiske Investeringsbank EUR Den Nordiske Investeringsbank USD Syndicated loan Flervaluta Bond issues NOK Svenska Handelsbanken SEK Financial lease agreements SEK Other Total Loan from Den Nordiske Investeringsbank in EUR has a maturity of 10 years from The loan amounts to EUR 25 million and the interest rate is Euribor plus a margin. Loan from Den Nordiske Investeringsbank in USD has a maturity of 12 years from The loan amounts to USD 27 million and instalments and interest payments are hedged against NOK through a currency- and interest rate swap. The hedge entails an interest rate of NIBOR plus a margin. The syndicated loan is a revolving multicurrency credit facility with a maturity of 7 years entered into with 9 banks in As at 31 December, 2003 this facility is not used. The interest rate is the reference rate in the various currencies plus a margin. The syndicated loan has favourable terms compared with market terms obtainable today. The remaining borrowing limit (corresponding to USD 180 million) falls due in October In October 2003 the Group issued bonds in the Norwegian bond market for a total of NOK 900 million as part of the refinancing of the Group s long term debt. The bonds issued are divided in a NOK 600 million fixed rate loan and a NOK 300 million floating rate loan. The fixed rate loan has a maturity of four years, an interest rate of 4.98 % pa. and the loan is listed at Oslo Stock Exchange (ticker SCHF01). The floating rate loan has a maturity of three years, the interest is three months NIBOR plus a margin of 0.50, and the loan is listed at Oslo Stock Exchange (ticker SCHF02). Loan from Svenska Handelsbanken includes a SEK 30 million loan due for repayment in 2005 and a SEK 100 mill loan due for repayment in The loans have fixed interest rates. Financial lease liabilities are related to printing machinery in Sweden. Two lease agreements (NOK 138 mill) with fixed interest rates expire in One lease agreement (NOK 56 million) with floating interest rate expires in See note 25 Financial market risk, regarding interest rate risk, liquidity reserves and refinancing of long term debt.

78 >> 74 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Interest bearing long term debt is due for repayment as follows: YEAR (NOK MILLION) and later 104 Total Note 24. Current liabilities Current liabilities consist of the following items: (NOK MILLION) Trade creditors Public duties payable Taxes payable Dividends payable Accrued wages Prepayment from customers Other current liabilities Total Note 25. Financial market risk Foreign exchange risk NOK is Schibsted s base currency, but through activities outside Norway the Group is exposed to change in foreign exchanges rates, mainly SEK, EEK and EUR. The Group uses debt denominated in foreign currencies and forward contracts in order to reduce the foreign exchange exposure related to net assets in these currencies. The Group holds at December 31, 2003 two forward contracts entered into for hedging purposes. Both contracts have maturity in The forward contracts involves sale of SEK 250 million and EUR 15 million, respectively, with purchase of corresponding amount in NOK. Unrealised foreign currency loss related to these contracts amounted to NOK 4 million at 31 December, Cash flows in foreign currencies related to investments and other significant transactions are hedged using financial instruments. Gains or losses on such instruments are deferred and included in income as part of the hedged transaction. At year-end, the Group did not hold such financial instruments. Interest rate risk Schibsted has debt with both fixed and floating interest rates, see note 23 Interest bearing long term debt. In addition, Schibsted Finans entered into a 10-year NOK 100 million 7 % interest rate cap in April Including effects of interest rate agreements, approximately 50 % of the Group s debt as per 31 December, 2003 has fixed interest rates. Schibsted has substantial pension liabilities which, opposed to interest bearing debt, are affected positively by an increase in the interest rate due to a corresponding increase in the discount rate. This reduces the need to hedge the interest rate on interest bearing long term debt. Liquidity risk At 31 December, 2003 the Group s liquidity reserves amounted to approximately NOK 2 billion, corresponding to 23 % of Group operating revenues. This is considered to be satisfactory. The Group s target is a liquidity reserve corresponding to at least 10 % of the expected operating revenues for the next 12 months. Approximately NOK 1,200 million of the Group s liquidity reserve related to the syndicated loan expires in October The Groups expects to refinance this with a new 5-year facility at a corresponding amount. The risk related to the refinancing is considered to be very limited. Schibsted s loan agreements contain covenants concerning the Group s equity ratio (equity > 30 %) and cash flow (cash flow/external finance > 10 %). The level of the Group s liquidity reserves is conditional upon these requirements being met. At 31 December, 2003 the Group was far within the mentioned requirements. Stock price risk At 31 December, 2003 the Group has limited exposure towards the equity market and therefore limited risk of loss in the event of fall in the market prices.

79 >> 75 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Note 26. Additional information to the cash flow statement The consolidated cash flow statement shows payments related to acquisition of subsidiaries and joint ventures net of cash acquired. Non-cash transactions in connection with the acquisitions are: (NOK MILLION) Cash in companies acquired Fair value of other current assets Fair value of fixed assets Total fair value of assets acquired Minority interests and liabilities assumed 1 (71) (34) Cash paid for equity Cash in companies acquired (11) (6) (14) Payments for acquisition of subsidiaries, net of cash acquired Note 27. Consolidated subsidiaries The following subsidiaries, owned directly or indirectly by Schibsted ASA are included in the consolidated financial statements at 31 December, 2003: - OWNERSHIP SHARE OF BUSINESS AREA NEWSPAPERS LOCATION % CONTROL % Aftenposten AS Oslo % % Aftenposten Annonseguiden AS Oslo % % Aftenposten Multimedia AS Oslo % % Distribution Innovation AS Oslo % % FINN Bil.no AS Oslo % % FINN Eiendom.no AS Oslo % % FINN Jobb.no AS Oslo % % FINN.no AS Oslo % % Gardermoen Avisdistribusjon AS Oslo % % Golfaxcess ASA Oslo % % Mediearkivet.no AS Oslo % % Oslopuls.no AS Oslo % % Aftonbladet Hierta AB Stockholm % % Aftonbladet Kolportage AB Stockholm % %* Aftonbladet Nya Medier AB Stockholm % % Hierta Affärsutveckling AB Stockholm % % Hierta Förlag AB Stockholm % % Hierta Venture AB Stockholm % % Tabloiden Förvaltnings AB Stockholm % % ASF Sverige AB Stockholm % % FinnMer AB Stockholm % % Blocket AB Stockholm % % Scanpix Scandinavia AB Stockholm % % OÜ Scanpix Baltics Tartu % % Scanpix Sverige AB Stockholm % % Scanpix Norge AS Oslo % % Svenska Dagbladet Holding AB Stockholm % % Annonsmaterial AB Stockholm % % HB Svenska Dagbladet AB & Co Stockholm % % Headhunter AB Stockholm % % Svensk Radiobokning AB Stockholm % % Svenska Dagbladets AB Stockholm % % Svenska Dagbladet Annons AB Stockholm % % Svenska Dagbladet Distribution AB Stockholm % % Svenska Dagbladet Executive Club AB Stockholm % % Svenska Dagbladet Venture AB Stockholm % % Svenskan Svenska Dagbladet AB Stockholm % % *) Aftonbladet Hierta AB is owned by Schibsted and Swedish LO (the Swedish Labour Union). LO holds 50.1% of the voting shares through preferred shares with a fixed annual return (SEK 3.6 million). Schibsted holds 49.9% of the voting shares and is in charge of the industrial and financial development of Aftonbladet.

80 >> 76 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Verdens Gang AS Oslo % % Avisretur AS Oslo % % Radio VG AS Oslo % % VG Multimedia AS Oslo % % VG Pluss AS Oslo % % Byt Bil Nordic AB Falkenberg % % European Media Ventures AB Stockholm % % European Media Ventures AS Oslo % % Fastighets AB Tidningsfabriken Stockholm % % Gratisavisen avis1 AS Oslo % % Mediearkivet AB Stockholm % % Osloavisen AS Oslo % % Schibsted AG Berlin % % Schibsted Eesti AS Tartu % % Schibsted Print Media AS Oslo % % Schibsted Trykk AS Oslo % % Tidningstryckarna Aftonbladet Svenska Dagbladet AB Stockholm % % OWNERSHIP SHARE OF BUSINESS AREA ESTONIA LOCATION % CONTROL % AS Eesti Meedia Tartu % % AS Kroonpress Tartu % % AS Postimees Tallinn % % AS Pärnu Postimees Pärnu % % AS Viru Press Rakvere % % OÜ Gildi Maja Tartu % % OÜ Müügigrupp Tartu % % AS Kanal 2 Tallinn % % - OWNERSHIP SHARE OF BUSINESS AREA TV / FILM LOCATION % CONTROL % Metronome Film & Television AB Stockholm % % Blarke Sonne Levring A/S Copenhagen % % Brand Selskapet A/S Copenhagen % % Bullet Productions A/S Copenhagen % % C. Wikander Produktion AB Stockholm % % Cosmo Televisjon AS Oslo % % Decimeter Film & TV AB Stockholm % % Drivankaret AB Stockholm % % Endemol Entertainment Produktion AB Stockholm % % European Film Group A/S Copenhagen % % Filmlance International AB Stockholm % % Helikopter A/S Copenhagen % % Helikopter Digital Media AB Gothenburg % % Hotel Seger AB Stockholm % % Intrige Television AS Oslo % % Mekano Enterprise AB Stockholm % % Mekano Film & Television AB Stockholm % % Mekano Film & Televisjon AS Oslo % % Meter Fakta AB Stockholm % % Meter Film & Television AB Stockholm % % Metronome Aps Copenhagen % % Metronome Film & Television Oy Helsinki % % Metronome Productions A/S Copenhagen % % Metronome Spartacus AB Stockholm % % Metronome Spartacus AS Oslo % % Metronome Studios A/S Copenhagen % % Moland Film Company A/S Copenhagen % % Moland Film Company AS Oslo % % Mutter Media AB Stockholm % % Nordic Entertainment A/S Copenhagen % % Nordic Entertainment AS Oslo % % Otto Tuotanto Oy Helsinki % %

81 >> 77 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP Peter Emanuel Falck Produktion AB Stockholm % % Post Selskapet A/S Copenhagen % % Rubicon TV AS Oslo % % TV Spartacus AB Stockholm % % TV Spartacus KB Stockholm % % Tvålkoppen AB Stockholm % % Metronome AS Oslo % % Schibsted Broadcast AS Oslo % % Schibsted TV & Film Infrastruktur AS Oslo % % Schibsted TV/Film & Forlag AS Oslo % % - OWNERSHIP SHARE OF BUSINESS AREA PUBLISHING LOCATION % CONTROL % Bladkompaniet AS Oslo % % Boknöje AB Helsingborg % % Bullhead AB Stockholm % % Full Stop Media AB Stockholm % % Maison Sverige AB Stockholm % % Pol Nordica Publishing sp z.o.o. Warsawa % % Spesialbladforlaget AS Oslo % % Cesam Forlag AS Oslo % % Cesam Bok ANS Oslo % % Chr. Schibsted Forlag AS Oslo % % Dine Penger AS Oslo % % Dine Penger Online AS Oslo % % Schibsted Forlagene AS Oslo % % Schibsted Internasjonale Bøker AS Oslo % % Svenska Förlaget Holding AB Stockholm % % Svenska Förlaget AB Stockholm % % Stålfjæra 5 ANS Oslo % % - OWNERSHIP SHARE OF OTHER OPERATIONS LOCATION % CONTROL % Schibsted Eiendom AS Oslo % % Akersgaten 55 AS Oslo % % AS Akersgaten 34 Oslo % % Jenagade 22 A/S Copenhagen % % Sandakerveien 121 AS Oslo % % Schibsted Finans AS Oslo % % Schibsted Media AB Stockholm % % Schibsted Multimedia AS Oslo % % Be Ep AB Oslo % % Beep Telekommunikasjon AS Oslo % % Bokkilden AS Oslo % % Inpoc AB Stockholm % % Inpoc AS Oslo % % Inpoc Baltics AS Tallinn % % Inpoc Latvia SIA Riga % % Inpoc UAB Vilnius % % Memento SOL AS Oslo % % SI Företagstjänster AB Stockholm % % SI Företagstjänster Holding AB Stockholm % % Schibsted Interactive Studio AS Oslo % % Schibsted Telecom AB Stockholm % % Schibsted Telecom AS Oslo % %

82 >> 78 SCHIBSTED ANNUAL REPORT 2003 INCOME STATEMENT SCHIBSTED ASA (NOK MILLION) NOTE Operating revenues Personnel expenses 3 (48) (41) Depreciation 4 (2) (5) Other operating expenses 5 (48) (56) Operating profit (loss) (45) (54) Financial income Financial expenses 6 (41) (119) Net financial items Profit before taxes Taxes 7 (64) (71) Net income Information about: Dividends (203) (136) Group contribution payable (187) (291)

83 >> 79 SCHIBSTED ANNUAL REPORT 2003 BALANCE SHEET AT 31 DECEMBER SCHIBSTED ASA (NOK MILLION) NOTE ASSETS Deferred tax asset IIntangible fixed assets 7 19 Tangible fixed assets Investments in subsidiaries Investments in associated companies Investments in other shares Other financial fixed assets 9, Financial fixed assets Fixed assets Receivables Cash and bank deposits Current assets Total assets EQUITY AND LIABILITIES Share capital Own shares (1) (1) Share premium reserve Paid in capital Other equity Retained earnings Equity Pension liabilities Provisions Current liabilities Total equity and liabilities

84 >> 80 SCHIBSTED ANNUAL REPORT 2003 CASH FLOW STATEMENT SCHIBSTED ASA ((NOK MILLION) CASH FLOW FROM OPERATING ACTIVITIES Profit before taxes Taxes paid (4) - Depreciation 2 5 Write-downs financial fixed assets Write-downs receivables - 8 Group contribution included in financial income (284) (348) Change in short term receivables (49) 53 Change in short term receivables (372) 380 Difference between pension cost and cash flow related to pension plans 2 2 Cash flow from operating activities (406) 434 CASH FLOW FROM INVESTING ACTIVITIES Investments in tangible fixed assets - (1) Investments in equity investments - (10) Cash flow from investing activities - (11) CASH FLOW FROM FINANCING ACTIVITIES New short term interest bearing debt Group contribution received (net) Dividends paid (135) (137) Repurchase / sale of own shares (22) (16) Cash flow from financing activities 25 (44) Cash flow for the year (381) 379 Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December 6 387

85 >> 81 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS SCHIBSTED ASA Note 1. Accounting principles Schibsted ASA follows the accounting principles described in note 1 to the consolidated financial statements except for the treatment of investments in subsidiaries and associated companies. Investments in subsidiaries and associated companies are accounted for using the cost method in the parent company financial statements and are written down if the carrying value exceeds recoverable amount. The write-down is reversed if the basis for the write-down is no longer present. Group contribution receivable is included in financial income provided that the group contribution receivable does not represent a repayment of paid in capital. Group contribution receivable which represent a repayment of paid in capital is accounted as a reduction in the cost of investments in subsidiaries. Net group contribution payable (gross group contribution less tax effect) is included in the cost of investments in subsidiaries. Dividends from associated companies are included in financial income. Note 2. Operating revenues Operating revenues consists of: (NOK MILLION) Revenues 2 1 Other operating income Total Revenues consist of accounting fees and other fees for assistance to other group companies. Other operating income consists of royalty related to the publishing rights of VG. The royalty agreement expired 31 December, Note 3. Personnel expenses and average number of employees Personnel expenses consist of: (NOK MILLION) Salaries and wages Social security cost 7 6 Net pension cost (note 14) 4 4 Other personnel expenses 5 3 Total Average number of employees has been 58 in 2003 included trainees. Note 4. Tangible fixed assets EQUIPMENT / (NOK MILLION FURNITURE / VEHICLES Cost at 1 January Additions - Disposals at cost - Cost at 31 December Accumulated depreciation at 1 January 2003 (28) Depreciation 2003 ( 2) Disposals - Accumulated depreciation at 31 December 2003 (30) Book value at 31 December Depreciation method Straight line Estimated useful life 3 10 years Annual operating lease payments 12 Depreciation in 2003 includes depreciation of leasehold improvements with NOK 1 million.

86 >> 82 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS SCHIBSTED ASA Note 5. Other operating expenses Other operating expenses consist of: (NOK MILLION) Rent, maintenance etc Office- and administrative expenses Professional fees 13 9 Travel, meetings and marketing Loss on receivables - 4 Total Note 6. Net financial items Financial income consists of: (NOK MILLION) Interest income 1 1 Group contribution receivable Dividends from associated companies Other financial income - 6 Total Financial expenses consist of: (NOK MILLION) Interest expense - 1 Interest expense cash pool system 11 8 Write-downs investments in subsidiaries Write-downs investment in other shares - 39 Total Group contributions payable to Schibsted Multimedia AS and subsidiaries of Schibsted Multimedia AS in 2003, NOK 41 million (net), has been capitalised as part of the investment in Schibsted Multimedia AS. The investment in Schibsted Multimedia AS has been written down by NOK 30 million in Note 7. Taxes Below is set out the difference between profit before taxes and taxable income: (NOK MILLION) Profit before taxes Permanent differences Change in temporary differences (43) 51 Taxable income Tax rate 28 % 28 %

87 >> 83 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS SCHIBSTED ASA Income taxes and taxes payable are calculated as follows: (NOK MILLION) Calculated taxes payable Tax credit on dividends (20) (13) Current income taxes Taxes payable related to group contribution payable (52) (81) Taxes payable - 4 Current income taxes Deferred income taxes 12 (14) Taxes Deferred tax asset consists of the following items: (NOK MILLION) Temporary differences related to: Tangible fixed assets (6) (7) Investments in other shares - (39) Prepaid pension cost 1 2 Accrued pension liabilities (17) (17) Other financial fixed assets - (1) Receivables - (8) Own shares 2 - Current liabilities ( 7) - Total temporary differences (27) (70) Tax rate 28 % 28 % Deferred tax asset (7) (19) Note 8. Investments in shares (NOK 1000) OWNERSHIP % LOCATION BOOK VALUE Investments in subsidiaries Aftenposten AS Oslo Chr. Schibsteds Forlag AS Oslo 70 Metronome AS Oslo Osloavisen AS Oslo 104 Schibsted Eiendom AS Oslo Schibsted Finans AS Oslo Schibsted Media AB Stockholm 492 Schibsted Multimedia AS Oslo Schibsted Print Media AS Oslo Schibsted TV. Film & Forlag AS Oslo Verdens Gang AS Oslo Total Group contribution payable to subsidiaries, NOK 135 million (net), is capitalised as part of the investments in subsidiaries. Investments in associated companies Adresseavisen ASA Trondheim Bergens Tidende AS Bergen Fædrelandsvennen AS Kristiansand Fædrelandsvennen Trykkeri AS Kristiansand 20 Stavanger Aftenblad ASA Stavanger TV 2 AS Bergen Total

88 >> 84 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS SCHIBSTED ASA (NOK 1000) OWNERSHIP % LOCATION BOOK VALUE Investments in other shares Asker og Bærums Budstikke ASA Billingstad Harstad Tidende AS Harstad Scanpix Scandinavia AB Stockholm Total Ownership (%) equals share of control. Note 9. Other financial fixed assets Other financial fixed assets consist of: (NOK MILLION) Prepaid pension cost (note 14) 1 2 Total 1 2 Note 10. Receivables Receivables consist of: (NOK MILLION) Short term receivables group companies Other receivables 3 5 Total Note 11. Cash and bank deposits Schibsted ASA's bank accounts are part of the Schibsted Group s cash pool with Danske Bank. The cash pool system is created to optimise cash management within the Group. The cash pool is led and administrated by Schibsted Finans AS. Schibsted ASA has per December 31, 2003 an overdraft of NOK 277 million in the cash pool system. The overdraft is included in Current liabilities. Change in cash and bank deposits is primarily due to decrease in short term liabilities to subsidiaries due to settlement of the NOK 370 million property sale. Note 12. Ownership structure Shareholders at 31 December, 2003: NUMBER OF SHARES SHARE % Blommenholm Industrier AS v/tinius Nagell-Erichsen Fidelity Funds 1) Folketrygdfondet State Street Bank & Trust Co Marathon Asset Management 1) JP Morgan Chase Bank Mellon Bank Orkla ASA JP Morgan Chase Bank Vital Forsikring ASA The Northern Trust Co Guri Scotford s Schibsted Trust The Northern Trust Co Svenska Handelsbanken ) Fidelity Funds and Marathon buy using nominee accounts. Shares held by Fidelity Funds and Marathon may thus also be included in shares held by other shareholders on the list.

89 >> 85 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS SCHIBSTED ASA NUMBER OF SHARES SHARE % Bank of New York Mellon Bank Storebrand Livsforsikring State Street Bank & Trust Co Euroclear Bank DnB Norge largest shareholders Berit Bjerg 678 Hilde Harbo 641 Cato A. Holmsen 200 Alexandra Bech Gjørv - Gunnar Nordby 641 Jan Reinås Ole Jacob Sunde Lars M. Berg - Monica Birgitta Caneman - Håkon Olav Kjernsmo 77 Kjell Aamot Trond Berger Jan Erik Knarbakk Birger Magnus Sverre Munck Total Board of Directors and Group Management Total number of shares outstanding as per December 31, 2003 is 69,250,000 and number of shareholders is 5,544. Foreign ownership is 42.6 %. Schibsted ASA holds 1,490,518 own shares per 31 December, In connection with the options program 60,000 shares were sold at 5 March, 2004 at NOK 100 per share. After the transaction the balance of own shares are 1,430,518 shares. Note 13. Equity Changes in shareholders equity were as follows in 2003: SHARE SHARE OWN PREMIUM OTHER (NOK MILLION) CAPITAL SHARES RESERVE EQUITY TOTAL Equity at 31 December (1) Repurchase / sale of own shares (0) (22) (22) Net income Dividends (203) (203) Equity at 31 December (1) Schibsted ASAs share capital consists of 69,250,000 shares par value NOK 1. Par value of own shares NOK 1,490,518 is presented in a separate line of paid in capital. Purchase price exceeding par value is deducted from other equity. Note 14. Pension plans For description and assumptions of the pension plans and a breakdown of plan assets for Schibsted ASA, see note 21 to the consolidated financial statements. As per December 31, 2003 the pension plan had 45 members. Breakdown of net pension cost: (NOK MILLION) Service cost 5 5 Interest cost 2 2 Expected return on plan assets (3) (3) Net pension cost 4 4

90 >> 86 SCHIBSTED ANNUAL REPORT 2003 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS SCHIBSTED ASA Breakdown of net pension liabilities at 31 December: (NOK MILLION) Accumulated benefit obligation (44) (38) Value of future wage growth (10) ( 9) Projected benefit obligation (54) (47) Plan assets Calculated net pension liabilities (11) (4) Unrecognised gains and losses ( 5) (11) Net pension liabilities (16) (15) Of which prepaid pension cost 1 2 Of which accrued pension liabilities (17) (17) Note 15. Current liabilities Current liabilities consist of following items: (NOK MILLION) Trade creditors 3 1 Taxes payable (note 7) - 4 Public duties payable 4 4 Dividends payable Short term liabilities group company (cash pool system) (note 11) Short term liabilities group companies Other current liabilities 15 7 Total Note 16. Guarantees (NOK MILLION) Guarantees in respect of loans to group companies Other guarantees in respect of group companies Other guarantees Total Of total committed loans of NOK 3.1 billion to group companies guaranteed by Schibsted ASA, NOK 1.9 billion was drawn at December 31, NOK 1.5 billion was drawn at December 31, Other guarantees in respect of group companies include guarantees issued in respect of leasing of print presses in Tidningstryckarna Aftonbladet Svenska Dagbladet AB of NOK 85 million. In addition, Schibsted ASA has issued guarantees of up to NOK 125 million towards Danske Bank in respect of guaranties for tax withholdings and other guarantees issued by Danske Bank in respect of subsidiaries. Schibsted ASA has issued guarantees in respect of loans to employees in the Schibsted Group totalling NOK 10 million, and issue guarantees in respect of unfunded pension liabilities totalling NOK 4 million. Note 17. Guarantees in respect of employees Schibsted ASA has issued guarantees in respect of loans to employees in the Group totalling NOK 10 million of which guarantees in respect of members of the Group Management amounts to NOK 2 million. The loans have an optional repayment plan and an interest rate of 1-1,5 % under marked interest in Guarantees in respect of the Group Management are allocated as follows: (NOK MILLION) 2003 Kjell Aamot 800 Trond Berger 804 Sverre Munck 390 Total 1 994

91 >> 87 SCHIBSTED ANNUAL REPORT 2003 NOTES SCHIBSTED GROUP