Bonnier_Annual_Report_ENG_2010 by IZDAI

Annual Report 2010

Content Board of Directors’ Report

3–7

Income Statements

Cash Flow Statements

Balance Sheets at December 31

Change in Shareholders’ Equity

Notes to the Financial Statements

11–33

Audit Report

Multi-year Summary

Annual Report for fiscal year January 1 – December 31, 2010 The Board of Directors and the President of Bonnier AB, corporate registration number 556508-3663, herewith submit the following Annual Report and Consolidated Financial Statements, pages 3–33, including the Board of Directors’ Report with the Proposed Disposition of Unappropriated Earnings, Income Statements, Balance Sheets, Cash-Flow Statements, Change in Shareholders’ Equity and Notes to the Financial Statements.

Translation from the Swedish original.

Cover: A close up of a stack of magazines from Bonnier companies worldwide. Photo: Niklas Palmklint

bonnier ab annual report

2010

Board of Directors’ Report Strong rebound in all business areas he total sales for the Group increased in 2010 by T 1 percent compared with the previous year, primarily because of lower exchange rates due to the strong Swedish Krona, amounting to SEK 30,578 M. Advertising revenues increased by 8 percent. roup profit/loss after net financial items increased G by SEK 1,228 M and amounted to SEK 1,000 M (–228). Excluding goodwill amortization, profit amounted to SEK 1,788 M (658). Profit/loss for the year after tax and minority interests amounted to SEK 711 M (–381).

Earnings SEK M Net sales EBITA Operating profit1) Net financial items Profit/loss after net financial items1) Profit/loss for the year Of which, items affecting comparability (see Note 9)

2010 30,578 2,111 1,522 –522 1,000 711

2009 30,867 1,185 212 –440 –228 –381

–281

• Sales fell by 1 percent to SEK 30,578 M (30,867). • Profit/loss after net financial items was SEK 1,000 M (–228). Profit/loss after tax and minority share was SEK 711 M (–381). • Rate of return on operating capital1) was 10 percent (1) and on shareholders’ equity1) 10 percent (–5). • Net debt at year’s end was SEK 7,207 M (8,497). • Shareholders’ equity including minority interests amounted to SEK 7,577 (7,135) M. • Gearing Ratio (Net debt/Shareholders’ equity including minority interests) amounted to 0.95 (1.19). Ownership. Bonnier AB is a wholly-owned subsidiary of Bonnier Holding AB, a subsidiary of Albert Bonnier AB, which, in turn, is owned by more than 70 members of the Bonnier family. Address and corporate registration number. The Bonnier AB Group’s Parent Company is Bonnier AB, whose corporate registration number is 556508-3663. The Head Office is located on Kungsgatan 49 and its postal address is SE-113 90 Stockholm, Sweden. The Internet address is www.bonnier.com. Business areas. The Group conducts operations in the media sphere, including books, magazines, daily newspapers, printed and electronic business information, music, cinemas, film and TV production, commercial local radio and Internet products. Operations are conducted in 16 countries. Important external factors affecting group earnings. The most important external factors that affect the Group’s earnings are business conditions in Sweden, household consumption, advertising investment and consumer expectations. These factors are also important for Group earnings in other Nordic countries, as well as in Eastern Europe, Germany, the US and other markets where the Group operates, along with the competitive situation in key markets. Extensive changes are occurring in the media sphere as a result of rapid developments in the IT sector and the Internet. The significant risk and uncertainty factors for the Group are dependent on how these external factors develop in the future.

All business areas increased their profits. Morning Paper improved its EBITA by SEK 414 M, Broadcasting & Evening Paper by SEK 269 M, Magazines by SEK 168 M and Business Press by SEK 148 M. The profit for Entertainment increased by SEK 25 M and the cinema division had its best year ever. This was true for Books as well, which hit an all-time high despite a lack of “megasellers”.

Business areas

Group overview

BITA (operating profit before capital gains/losses, E before share of profit/loss in associated companies and before goodwill and other write-downs and depreciation related to acquisitions) amounted to SEK 2,111 M (1,185).

Net sales by business area SEK M Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Total

2010 6,265 5,658 9,978 3,828 1,758 3,405 –314 30,578

2009 6,710 5,671 9,524 4,203 1,866 3,196 –303 30,867

Change, % –6.6 –0.2 4.8 –8.9 –5.8 6.5

EBITA by business area SEK M Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Total

2010 720 155 1,260 280 210 39 –553 2,111

2009 710 –13 991 255 62 –375 –445 1,185

Change, % 1.4

–0.9

27.1 9.8 238.7

78.1

Bonnier Books includes book publishers and book clubs in several

countries. The Swedish Bonnierförlagen includes among others Albert Bonniers Förlag and Wahlström & Widstrand. In Sweden there is also Semic International, in Finland Tammi and in Norway Cappelen Damm (50 percent). Through Bonnier Media, Bonnier is the leading publisher of children’s books in Germany and there it also has an extensive publishing of fiction. The British book publisher Bonnier Publishing has subsidiaries in among other countries France, Australia and the US. Moreover it includes the largest on-line book retailer in the Nordic region, Adlibris. Books had an EBITA1) of SEK 720 M (710), the business area’s best result so far. Sales fell slightly due to unfavorable exchange rates. In contrast to 2009, sales in 2010 were not driven by individual bestsellers but by a broad and attractive assortment. Publishing houses within Books increased sales even in shrinking markets. The strong profits were the result of long-term work at improving gross profit margins, primarily within Bonnierförlagen and Bonnier Media Deutschland. Bonnierförlagen had its best year ever, as did online bookstore Adlibris. Bonnier Magazine Group is comprised of three publishers of periodicals, Bonnier Publications with head offices in Copenhagen and Oslo, Bonnier Tidskrifter in Stockholm and Bonnier Corporation in the US. The business area is, in the first place, oriented towards consumer publications but has also a significant publication of business to business titles as well as cost free newspapers.

For definition see Note 39 in the Annual Report.

bonnier ab annual report

2010

Board of Directors’ Report

Magazines had nearly the same sales as the year before. The EBITA was SEK 155 M (–13). Bonnier Publications, with operations in the Nordic countries and Russia, improved profits primarily due to lower costs, while the Swedish Bonnier Tidskrifter’s improved results were primarily from higher advertising revenues. The US operations, Bonnier Corporation, showed strong improvement as a result of increased ad sales revenues during the second half of the year. Bonnier’s own Mag+ platform for the iPad was launched and was very well received. Bonnier Broadcasting & Evening Paper covers TV, radio and eve-

ning newspapers. This business area includes TV4 AB, with C More Group AB, MTV Media Oy in Finland and the evening newspapers Expressen, GT and Kvällsposten. Sales increased by 5 percent. The EBITA was SEK 1,260 M (991). The main reason for the improvement was better ad sales for TV4 and Expressen, with TV4’s ad space completely sold out during the latter part of the year. The Finnish MTV didn’t see the same growth in ad sales as in Sweden but showed better results than the previous year. Bonnier Entertainment covers mainly film and music. This business area includes Svensk Filmindustri (SF) with activities in all the Nordic countries as well as SF Bio with cinemas in Sweden and Norway. Homeenter sells film and music throughout the Nordic region and Bonnier Gaming operates and markets gaming concepts on the Internet. Sales decreased by 9 percent as a result of lower sales for Svensk Filmindustri and Homeenter. SF Bio continued with strong growth, however. The EBITA for the business area was SEK 280 M (255). The main reason for the improvement was SF Bio, with record results, primarily due to a strong start of the year. The most popular films were Avatar, Harry Potter and the Deadly Hallows, Part 1 and Inception. On the downside, Homeenter had a tough year and reported lowered profits from the previous year because of weak growth in the mail-order clubs. Svensk Filmindustri reported profits at the same level as the previous year. Bonnier Business Press publishes mainly daily business newspapers. In addition to Dagens Industri in Sweden and Børsen in Denmark it publishes Äripäev in Estonia, Verslo Žinios in Lithuania, Delovoj Peterburg in Russia, Puls Biznesu in Poland, Finance in Slovenia and Pari (50 percent) in Bulgaria. The Russian weekly Delovaja Gazeta Yug is published in Krasnodar in Russia. The business area includes the Internet sites dp.ru in Moscow, rynok. biz in the Ukraine and cv.lt in Lithuania. Medicine Today International has been included in the business area since 2007. Sales decreased by 6 percent, but when excluding divested operations showed an increase of 2 percent. The EBITA was SEK 210 M (62). Ad sales revenues increased throughout the year, primarily for Dagens Industri but even for Dagbladet Børsen, while the ad sales in the Baltic countries continued to be problematic in 2010. Circulation remained stable during the year and the companies continued to have good control over costs. In December, Dagens Industri launched Di+, an iPad application on Bonnier’s News+ platform. Bonnier Morning Paper publishes daily newspapers in Sweden.

The Swedish newspaper operations comprise the large city morning newspapers Dagens Nyheter (Stockholm) and Sydsvenskan (Malmö) as well as the regional newspapers Ystads Allehanda, Trelleborgs Allehanda and Kristianstadsbladet. This business area also includes the Swedish daily press printing operations in Bold Printing Group and Premo (50 percent). The sales increased by 7 percent. The EBITA was SEK 39 M (–375). Both circulation and ad sales revenues increased during

the year, and the ad sales market’s rebound grew stronger during the second half of 2010. Cost-reduction measures improved the results for the newspapers, and investments were made in converting the print operations within Bold. Along with the business newspapers, morning papers also launched iPad applications on the News+ platform. Other includes group-wide activities and functions. This includes

investments in the new business area Digital, which is under development, as well as the costs for establishing a shared service center for Bonnier’s Nordic operations. The effects of these group-wide activities on the group’s EBITA was SEK –553 M (–445). Acquisitions and divestments. Acquisitions were carried out to a value of SEK 223 M1). Divestments amounted to SEK 1,130 M with a total capital gain of SEK 158 M. The most significant acquisitions and divestments of the year were: • Bonnier Gaming acquired 100 percent of Soft Capital AB. • Bonnier Broadcasting & Evening Paper divested 35 percent of the shares in C More AB. • At the end of the year Tryckfast AB was divested to Bonnier Holding AB. Cash flow influence of the years acquisitions and divestments amounted to net SEK 896 M. Geographical distribution Net sales by geographical market SEK M Sweden Finland Norway Denmark United States Germany Other markets Total

2010 16,749 3,587 2,885 2,174 2,141 1,765 1,277 30,578

2009 15,761 3,937 2,982 2,434 2,158 2,128 1,467 30,867

Change, % 6.3 –8.9 –3.3 –10.7 –0.8 –17.1 –13.0 –0.9

The foreign share of sales decreased by 3.7 percentage points to 45.2 percent. This is mainly explained by a stronger Swedish recovery and lower exchange rates due to the strong Swedish Krona. Investments and net debt Change in net debt, condensed SEK M Funds generated internally Change in working capital Net investments in operations Free cash flow Net acquisitions and divestments of operations, shareholdings and participations Cash flow after acquisitions and divestments Group contributions, dividends etc. Translation difference Change in net debt

2010 4,918 –39 4,879 –4,383 496

2009 3,798 170 3,968 –3,806 162

907 1,403 –326 213 1,290

310 472 –338 59 193

Net debt decreased during the year by SEK 1,290 M. Free cash flow in relation to sales increased by 1.1 percentage points to 1.6 (0.5) percent. The Parent Company’s investments amounted to SEK 29 M (12), of which tangible fixed assets accounted for SEK 1 M (1) and investments in shares and participations for SEK 28 M (11). The Parent Company’s liquid funds amounted to SEK 0 M (0) at year-end.

The values of acquisitions and divestments refer to the effect on net debt.

bonnier ab annual report

2010

Board of Directors’ Report

Capital structure Operating capital SEK M Tangible and intangible fixed assets, excl. goodwill Working capital Other financial assets Goodwill Operating capital

31 dec 2010 5,420 65 233 9,066 14,784

31 dec 2009 4,957 –500 193 10,982 15,632

Net debt Shareholders’ equity and minority interests Financing of operating capital

7,207 7,577 14,784

8,497 7,135 15,632

0.95

1.19

Net debt/shareholders’ equity1), multiple 1)

Including minority interests. For definition see Note 39 in the Annual Report.

Net debt/equity ratio1) (gearing) was 0.95 (1.19). The equity/assets ratio1) rose by 3.1 percentage points to 31.5 (28.4) percent. Research and development. The Group’s research and development operations are primarily conducted by the concerned business areas. Bonnier Media University is at the central Group level. Personnel and personnel policy. The average number of employees amounted to 10,238 (10,905), a decrease of 667. In the Parent Company the average number was 49 employees (48). Bonnier AB particularly values talent, entrepreneurship, professionalism and integrity and strives to do what is right, and to be the best at doing it. The work environment is sensitive to change and decision-making paths are short. Bonnier AB attracts and develops the best employees in the industry, offering them good personal development and career opportunities in a work environment characterized by creativity, success, job satisfaction, an atmosphere of openness and tolerance. Ideas flow. Work locations shall be friendly and with respect consideration for each other. In 2010, more than 250 employees actively saved an amount of their salary each month in a skills insurance program while the company contributed a corresponding amount. Started in 2000, the program continues in 2010. These funds can be used for payment of wages and salaries during future training/education programs. In consultation with their particular managers, many employees financed their training and skills development by this means during the year. In addition, Bonnier AB conducts its own educational program, Bonnier Media University, which focuses on leadership development, seminar activities, and provides individual companies within the Group with training and educational support. During 2010, nearly 1,000 employees participated in such programs. Bonnier Media University also arranges the distribution of National Journalism Award. Corporate Social Responsibility. This concept, CSR, includes environmental impact and social responsibility. The Group has operations in more than 170 companies in 16 countries. All business areas shall carry on an active environmental effort. The business area managers have the responsibility for the environmental work within the respective business area, while the President for each company within the group determines the scope and forms of the environmental inputs in accordance with Bonnier AB’s environmental policy. The ambition is to produce products and services with the aid of processes and methods that generate minimal negative environmental impact. Bonnier AB’s CSR Council, where all business areas are represented, is a platform for the interchange of experiences and co-operation and pushes forward the environmental work as well

as preparing policy proposals on important issues. CSR Council reports to the Group Management. Environmental impact. The Group’s subsidiary DNEX Tryckeriet AB conducts activities that require a permit in accordance with the Swedish Environmental Code. Operations mainly impact the external environment through emissions to air in connection with handling organic solvents. Social responsibility. Bonnier AB creates work opportunities

and contributes to development within the community. Providing meaningful jobs to our employees and providing culture, news, information, knowledge, analysis and entertainment to the general public and the advertising market is a major responsibility. Bonnier AB welcomes the increasing demands made on companies by consumers in regard to ethics and responsibility. The Group strives to ensure that products and services procured externally are manufactured under reasonable work conditions and it places demands on suppliers and partners. Child labour, discrimination, deficiencies in regard to health and safety, and indentured servitude are examples of unacceptable conditions that Bonnier AB does not accept and strives to avoid through this policy and the demands placed on suppliers. Financial policy. Management of foreign exchange transactions is determined by the Group’s financial policy. Long-term holdings in subsidiaries are not hedged since this is considered to be advantageous for the long-term risk diversification and it also avoids a short-term negative impact on liquidity. Except for some local financing in the currency used by the subsidiary concerned, financial transactions are confined to the Parent Company and its financing company. Group companies work mainly in local currencies and primarily in their own markets. As a result, major currency risks are uncommon, and are normally hedged. The Group’s financial policy regulates the interest-rate risk. Interest-rate risk is the risk that changes in the market interest rate will affect the Group’s net of interest income and expense adversely. The fixed-interest term of the loan determines how rapidly the change in rate impacts the net interest income and expense. The standard is that the average fixed-interest period of net debt should be 12 ± four months. Board activities during the year. The Board of Directors of Bonnier AB consists of eight members elected by the shareholder, and three members and three deputy members appointed by trade union organizations. The company’s Chief Financial Officer attended meetings on a regular basis, and other senior executives attended in a reporting capacity. The Board held six meetings during the year at which minutes were taken. In addition to decisions taken, the minutes also indicate the basis for decisions and provide an account of discussions. The meetings follow an agenda distributed prior to meetings, and the Board receives full documentation of the issues to be discussed in advance. The Board’s operations comply with procedural instructions. A remuneration committee determines salaries, incentive programs and other conditions of employment for the President. The Board of Directors has an Audit Committee. The Committee is led by Chairman of the Board Carl-Johan Bonnier. Other committee members include Arne Karlsson (Board member) and Jonas Nyrén (President of the Parent Company Bonnier Holding AB). The company’s CFO Göran Öhrn presents reports to the committee. The company’s auditors are co-opted onto the committee. The committee’s principle task is to support the Board with respect to monitoring risk management, internal control in systems and processes, financial reporting and the audit.

For definition see Note 39 in the Annual Report.

bonnier ab annual report

2010

Board of Directors’ Report

Work includes approval of the auditors’ risk analysis, audit plan and fees. The work also includes a review of the auditors’ report on their examination of the administration and internal control, applied accounting policies, annual accounts and the annual report. To satisfy the Board’s information requirement, the company’s auditors participate in one Board meeting each year. On this occasion, the auditors present a brief report on their observations from the annual audit. Parent Company. The Parent Company includes primarily Group-wide functions. Net sales and profit/loss SEK M Net sales Of which, invoicing to other Group companies Profit before appropriations and tax

2010 54 33 542

2009 53 38 670

Outlook for 2011. Profit for 2011 is expected to be in line with 2010.

Summary of earnings and financial position Condensed income statement SEK M Net sales Advertising tax Other operating revenues Operating costs1) Amortization and write-downs of goodwill Depreciation and write-downs Share of profit/loss in associated companies Operating profit2) Result from financial investments Profit/loss after financial items Tax expense for the year Minority share of profit/loss for the year Profit/loss for the year

2010 30,578 –48 300 –24,699 –788 –3,861 40 1,522 –522 1,000 –284 –5 711

2009 30,867 –43 115 –26,406 –886 –3,456 21 212 –440 –228 –133 –20 –381

–6,880

–7,261

–281

31 dec 2010 9,066 3,818 1,603 33 239 1,103 1,371 3,383 2,267 752 427 24,062

31 dec 2009 10,984 3,000 1,957 23 200 938 1,488 3,739 2,119 453 228 25,129

Shareholders’ equity Minority interests Interest-bearing provisions and liabilities1) Restructuring reserve

7,025 552 8,224 195

7,024 111 8,961 240

Accounts payable – trade Subscription liabilities and other advances from customers Other noninterest-bearing provisions and liabilities Total shareholders’ equity and liabilities

2,240

2,521

1,562 4,264 24,062

1,561 4,711 25,129

Of which, personnel costs, see also Note 9

Of which, items affecting comparability

Condensed balance sheet SEK M Goodwill Other intangible fixed assets Tangible fixed assets Interest-bearing long-term receivables Other financial assets Deferred tax receivables Inventories Accounts receivable – trade Other current assets Interest-bearing current receivables1) Short-term investments, cash and bank balances Total assets

Including accrued and prepaid interest income and expenses.

bonnier ab annual report

2010

Board of Directors’ Report

Change in shareholders’ equity SEK M Shareholders’ equity, opening balance

2010 7,024

2009 7,990

Effect change of accounting principle Dividend Translation difference Group contributions granted Tax on Group contributions granted Total direct charges to shareholders’ equity

–255 –374 –110 29 –710

–130 –235 –175 –60 16 –584

Profit for the year Shareholders’ equity, closing balance

711 7,025

–382 7,024

2010

2009

472 4,941 –39 5,374

–648 4,562 170 4,084

–4,383

–3,806

Condensed cash-flow statement SEK M Operating activities Profit after taxes paid Items not included in cash flow Change in working capital Cash flow from operating activities Investing activities Net investments in operations Net acquisitions and divestments of operations, shares and participations

906

310

Cash flow from investing activities

–3,477

–3,496

Cash flow after investing activities

1,897

588

Financing activities Dividend/Group contributions Net borrowing/amortization Cash flow from financing activities

–326 –1,341 –1,667

–378 –196 –574

Cash flow for the year

230

Liquid funds Liquid funds, Jan. 1 Cash flow for the year Translation difference Liquid funds, Dec. 31

228 230 –31 427

233 14 –19 228

bonnier ab annual report

2010

Board of Directors and President’s Proposed Disposition of Unappropriated Earnings

The following earnings are at the disposal of the Annual Meeting: Retained earnings Earnings in 2010

SEK 13,552,610,759 471,696,176 14,024,306,935

The Board of Directors and the President propose that these funds be disposed of as follows: Dividend to the shareholder of SEK 45.19 per share, total To be carried forward to new account

271,140,000 13,753,166,935 14,024,306,935

Board’s statement regarding the proposed dividend Before the proposed dividend, the Bonnier AB Group’s nonrestricted shareholders’ equity amounts to SEK 5,179 M and after the dividend to SEK 4,908 M. The equity/assets ratio before the dividend is 31.5 percent and is reduced, if the proposed dividend is implemented, by 0.8 percentage points to 30.7 percent. This equity/assets ratio is satisfactory against the background that the Group’s operations is expected to be carried out with profit and positive cash flow. The Parent Company’s non-restricted shareholders’ equity is SEK 14,024 M before the proposed dividend and after the dividend SEK 13,753 M. The equity/assets ratio before the dividend is 74.4 percent and is reduced with the proposed dividend with 0.3 percentage point to 74.1 percent. The Group reports a net debt of SEK 7,207 M. Liquidity is satisfactory. It is the Board’s opinion that the proposal for disposition of unappropriated earnings does not hinder the companies included in the Group from meeting their obligations in the short and long term nor from completing necessary investments. Accordingly, the proposal for disposition of unappropriated earnings is consistent with the requirements placed by the form, scope and size of the operations on shareholders’ equity and take into account the company’s consolidation needs, liquidity and financial position in general. The dividend can be justified in relation to the Swedish Companies Act’s prudence principle in Chap. 17, Section 3, Para. 2–3. The dividend will be paid on May 16, 2010. In the prepared annual report a Group contribution of SEK 110 M was provided to the Parent Company Bonnier Holding AB by another Group company.

Income Statements SEK M Net sales Advertising tax Other operating revenues Operating costs Raw materials and supplies Goods for resale Other external costs Personnel costs Amortization/depreciation and write-downs of intangible and tangible fixed assets Other operating costs

Note 2, 3 9

6, 7, 9 4, 5, 9 8

Total operating costs Share of profit/loss in associated companies before tax

Operating profit/loss

2, 9

Income from financial investments Income from participation in subsidiaries Income from participation in associated companies Income from other securities and receivables held as fixed assets Other interest income and similar items Interest expense and similar items Total income from financial investments

11 11 12 13 13

Profit/loss after financial items Appropriations Tax on profit/loss for the year Minority participations in profit/loss for the year PROFIT/LOSS FOR THE YEAR

14 15

Cash Flow Statements SEK M Operating activities Profit/loss after financial items Adjustments for items not included in cash flow, etc.

Note

Group 2010 2009 30,577.9 30,866.9 –47.8 –42.9 299.9 114.6 30,830.0 30,938.6

Parent Company 2010 2009 54.0 53.1 0.6 54.6

1.3 54.4

–161.9 –99.3

–164.3 –98.0

–3,359.9 –5,013.5 –9,377.3 –6,879.6

–3,824.8 –5,540.2 –9,615.3 –7,260.8

–4,648.6 –69.3

–4,341.6 –165.0

–2.1

–2.3

–29,348.2 –30,747.7

–263.3

–264.6

–208.7

–210.2

848.8

40.0

21.2

1,521.8

212.1

4.4 29.6 –555.6 –521.6

2.9 58.2 –500.9 –439.8

59.5 12.6 –170.7 750.2

976.7 –4.6 88.0 13.7 –188.0 885.8

1,000.2

–227.7

541.5

675.6

–283.7 –5.4 711.1

–133.7 –20.1 –381.5

–40.5 –29.3

176.8 1.1

471.7

853.5

Group 2010 2009

Parent Company 2010 2009

Taxes paid Cash flow from operating activities before change in working capital

1,000.2 4,941.1 5,941.3 –528.5 5,412.8

–227.7 4,562.1 4,334.4 –419.7 3,914.7

541.5 –143.9 397.6 –148.9 248.7

1,704.3

Change in working capital Cash flow from operating activities

–39.3 5,373.5

169.9 4,084.6

38.3 287.0

–14.3 1,690.0

906.6 –4,383.2

309.7 –3,806.2

–3,476.6

–3,496.5

–28.4 –0.9 –68.0 757.0 659.7

–25.1 0.1 –493.3 50.8 –467.5

–625.9 –10.9 1,727.1 –2,431.6 –62.1 –264.3 –1,667.7

11.9 –299.1 7,175.6 –7,084.7 –91.0 –286.7 –573,9

1,204.1 –1,895.5

1,302.8 –2,290.1

–255.3 –946.7

–235.2 –1,222.5

229.2 228.2 –30.3 427.1

14.2 232.9 –18.9 228.2

0.0 0.0

0.0

Investing activities Acquisition and divestment of operations Acquisition and divestment of fixed assets New lending Amortization received Cash flow from investing activities Financing activities New borrowing/receivables repaid, net Liabilities and receivables via acquisitions and divestments New borrowing, etc. Amortization of debt Group contributions Dividend paid Cash flow from financing activities Cash flow for the year Liquid funds, Jan. 1 Translation difference in liquid funds Liquid funds, Dec. 31

675.6 1,028.7 1,704.3

bonnier ab annual report

2010

Balance Sheets at December 31 SEK M ASSETS Fixed assets Intangible fixed assets

Note

Tangible fixed assets Buildings and land Plant and machinery Equipment, tools, fixtures and fittings Construction in progress and advance payments for tangible fixed assets

Financial fixed assets Participations in subsidiaries Participations in associated companies Other securities held as fixed assets Interest-bearing receivables Noninterest-bearing receivables

Group 2010 2009

Parent Company 2010 2009

17, 29

12,883.8

13,983.9

18, 30 18, 30 30, 31

336.3 535.2 673.2

549.0 671.8 724.5

5.7

6.9

58.1 1,602.8

11.3 1,956.6

5.7

6.9

152.5 86.7 33.0 1,103.0 1,375.2

139.8 59.8 23.6 937.8 1,161.0

16,094.6 0.7

16,300.4 1.4

2,534.0 33.9 18,663.2

2,768.8 30.8 19,101.4

15,861.8

17,101.5

18,668.9

19,108.3

83.7 660.7 744.4

574.8 209.9 784.7

33, 35, 36 20, 32, 33 32, 33 32, 33 32, 33

Total fixed assets Current assets Inventories, etc.

1,371.0

1,488.6

Short-term receivables Interest-bearing receivables Noninterest-bearing receivables

22 22, 23

721.2 5,681.1 6,402.3

328.2 5,982.8 6,311.0

3.3 423.9

2.5 225.8

8,200.5 24,062.3

8,027.9 25,129.4

744.4 19,413.3

784.7 19,893.0

300.0

300.0 91.8

1,545.2

1,531.1 391.8

391.8

4,468.3

5,574.3

711.1

–381.5

7,024.6

7,023.9

13,552.6 471.7 14,024.3 14,416.1

12,954.4 853.5 13,807.9 14,199.7

41.7

1.1

Short-term investments Cash and bank balances Total current assets TOTAL ASSETS SHAREHOLDERS’ EQUITY AND LIABILITIES Shareholders’ equity Share capital (5,228,296 Series A shares and 771,704 Series C shares)1) Statutory reserve Restricted reserves Restricted equity in the Parent Company Non-restricted reserves Profit brought forward Profit/loss for the year Non-restricted equity in the Parent Company Total shareholders’ equity Untaxed reserves Minority interests Provisions Interest-bearing provisions Noninterest-bearing provisions Total provisions

24, 34, 37, 38 24, 34

Long-term liabilities Interest-bearing liabilities Noninterest-bearing liabilities Total long-term liabilities

25, 26, 37 25

Current liabilities Interest-bearing liabilities Noninterest-bearing liabilities Total current liabilities TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES Pledged assets Contingent liabilities 1)

27, 37 27, 28

37 38

552.5

110.7

1,714.9 387.2 2,102.1

1,706.1 399.1 2,105.2

158.9

150.4

158.9

150.4

5,251.0 7.9 5,258.9

5,867.2 23.3 5,890.5

1,831.5

631.5

1,831.5

631.5

1,415.9 7,708.3 9,124.2 24,062.3

1,579.6 8,419.5 9,999.1 25,129.4

2,764.5 200.6 2,965.1 19,413.3

4,662.4 247.9 4,910.3 19,893.0

51.0 1,749.1

761.5 1,282.9

10,109.9

12,796,1

All shares are paid in full, and the number remained unchanged during 2009 and 2010. Series A shares carry one vote and Series C shares carry 10 votes. The shares quota value is 50.

bonnier ab annual report

2010

Change in Shareholders’ Equity Share capital 300.0

SEK M Opening balance, Jan. 1, 2009 Appropriation of profit Dividend Effect change of accounting principle 1) Translation difference Group contributions granted Tax on Group contributions granted Transfer between restricted and non-restricted reserves Profit for the year

611.8

Opening balance, Jan. 1, 2010 Appropriation of profit Dividend Translation difference Group contributions granted Tax on Group contributions granted Transfer between restricted and non-restricted reserves Profit for the year Closing balance, Dec. 31, 2010

300.0

Share capital 300.0

SEK M Opening balance, Jan. 1, 2009 Appropriation of profit/loss Dividend Profit for the year Opening balance, Jan. 1, 2010 Appropriation of profit/loss Dividend Profit for the year Closing balance, Dec. 31, 2010

Restricted reserves 919.3

300.0

1,531.1

Group Nonrestricted reserves 5,718.8 1,052.1 –235.2 –130.2 –174.8 –60.6 16.0 –611.8

14.1

5,574.3 –381.5 –255.3 –374.3 –109.6 28.8 –14.1

1,545.2

4,468.3

Total 7,990.2 –235.2 –130.2 –174.8 –60.6 16.0

–381.5

–381.5 381.5

7,023.9 –255.3 –374.3 –109.6 28.8

711.1 711.1

711.1 7,024.6

Parent Company Profit/loss brought Statutory Profit/loss reserve forward for the year 91.8 11,289.3 1,900.3 1,900.3 –1,900.3 –235.2 853.5

Total 13,581.4

91.8

12,954.4 853.5 –255.3

300.0

Profit/loss for the year 1,052.1 –1,052.1

91.8

13,552.6

853.5 –853.5 471.7 471.7

–235.2 853.5 14,199.7 –255.3 471.7 14,416.1

See Note 1.

bonnier ab annual report

2010

Notes to the Financial Statements Note 1 Principles of accounting and valuation The annual report is prepared in accordance with the Annual Accounts Act and general recommendations of the Swedish Accounting Standards Board. Bonnier AB is not a listed company and thus does not report according to International Financial Reporting Standards, IFRS. However, Bonnier AB complies with the former Swedish Financial Accounting Standards Councils recommendations (RR) and statements (URA) to the extent that these are applicable to non-listed companies according to the Swedish Accounting Standards Board. The Group’s valuation principles agree with these recommendations whereas Bonnier AB deviates from certain of the requirements for information. The income statement employs classification of items by type of cost. This form of presentation conforms more closely with the Group’s internal control systems than allocation by functions. In 2010, advance payments for film and broadcasting rights are reported as fixed assets. For 2009, comparable figures has been restated by SEK 642.9 M. During 2009, the subsidiary Weldon Owen Publishing Inc. changed accounting principle for the valuation of inventory. The change was made to conform to the Group’s valuation principles. The subsequent earnings effect was negative in the amount of SEK 130.2 M, which was recognized directly in equity. Comparative figures of inventory was not restated since the value of this information was not deemed to be in reasonable proportion to the expense of compiling such information. Consolidated accounts. The consolidated accounts include subsidiaries in which the Parent Company directly or indirectly has decisive influence. The consolidated financial statements have been prepared in accordance with the purchase method, whereby the equity in subsidiaries at the date of acquisition – established as the difference between the actual values of the assets and liabilities – is eliminated in its entirety. Accordingly, Group equity only includes the proportion of subsidiaries’ equity arising after the date of acquisition. When the Group’s acquisition value for shares is higher than the value shown in the acquisition analysis of the subsidiary’s net assets, the difference is reported as Group goodwill. The accounts of foreign subsidiaries are translated into SEK in accordance with the current-rate method, whereby all balance sheet items are translated at year-end exchange rates, while the income statements are translated at the average rate for the year. The resulting translation difference is credited/charged directly to restricted and non-restricted reserves in accordance with the Swedish Financial Accounting Standards Council’s recommen dation. Income of companies acquired during the year is consolidated for the period after the date of acquisition. Income of companies sold during the year is included in the consolidated accounts up until the date of sale. Internal profits within the Group are eliminated in their entirety, without taking minority interests into account. Minority participation in profit/loss for the year is reported in the consolidated income statement. Minority participation in the equity of subsidiaries is reported in a separate item in the consolidated balance sheet. Accounting for associated companies. Companies which are not subsidiaries, but in which the Parent Company has a significant influence and in which the Parent Company directly or indirectly holds at least 20 percent of the voting rights for all participations are regarded as associated companies. See Note 10 and Note 20. Associated companies are reported in the consolidated accounts by applying the equity method in accordance with RR 13. In the equity method, consolidation primarily takes the form of separate lines in the consolidated income statement and consolidated balance sheet. In the income statement, the Group’s share of earnings in associated companies after financial items is reported

bonnier ab annual report

2010

on a separate line as part of Group operating profit/loss. Shares of taxes in associated companies are included in Group tax expense. Participations in associated companies are reported in the balance sheet under financial assets. The item is increased or decreased by a percentage of income after deduction for any dividends received. Certain associated companies that are partnerships, and are mainly owned by SF Bio AB, have been reported in a manner stipulated by RR 13, appendix 1. Joint ventures. Operations where Bonnier AB is joint owner under agreement on joint determining influence are classified as joint ventures. The Group is only involved in joint ventures which constitute a separate legal entity and these are reported in the Group financial statements according to the proportional method. The proportional method means that the Group’s share of assets, liabilities, income and expense in the jointly controlled company is merged item by item with equivalent items in the Group’s income statement and balance sheet. Interests in joint-owned companies are reported in the parent company at acquisition value with deduction for any write-downs. Cash flow statements. The cash flow statements have been prepared in accordance with the indirect method. The reported cash flow only includes transactions that result in incoming or outgoing payments. In addition to cash and bank balances, financial instruments exposed merely to an insignificant risk of fluctuations, which are traded in an open market at known amounts or with a maximum maturity of three months, have also been classified as liquid funds. Fixed assets. Straight-line amortization/depreciation of intangible and tangible fixed assets is based on historical cost and is systematically written off over the estimated useful life of the asset. The following annual rates of amortization/depreciation are applied: Intangible fixed assets Buildings and land

5–20 percent 1–5 percent

Plant and machinery

5–33 percent

Equipment, tools, fixtures and fittings

5–33 percent

A 20 percent amortization is normally applied to intangible assets. On acquisition values of more than SEK 5 M a lower percentage rate may be used if special reasons justify this. The most important deviations from 20 percent amortization for intangible assets are as follows: Goodwill arising from the acquisition of Sydsvenska Dagbladets AB is amortized at 5 percent per year. This goodwill is attributable to the special value of the publishing licenses held by the newspapers acquired, and their strong positions in the local markets in Skåne. The same rate of amortization of goodwill was applied to the acquisition by Sydsvenska Dagbladets AB of the Allehanda Syd Group and its very strong local newspapers, Ystads Allehanda and Trelleborgs Allehanda. This also applied to the application of the equity method for the acquisition of Kristianstadsbladet AB and was justified by the strong position of the Kristianstadsbladet newspaper in its market. In 2002, operations were restructured and the three newspapers formed Skånemedia AB. As a result of adjustment to the earlier time schedule, goodwill in this company is amortized over 18 years. A 5 percent goodwill amortization is applied to the TV operations. This is justified by the possession of strong brands on the TV market in the Nordic region. A 5 percent goodwill amortization is applied to Bonnier Corporation (holding 80%) and is justified by the company’s strong position within special periodicals for sports, fishing, boats and science as well as leading titles for new parents and parents-to-be.

Notes to the Financial Statements

Note 1 cont. 5 percent amortization is applied to goodwill from the acquisition of Cappelen Damm Holding AS (ownership interest 50%) and is justified by the company’s strong position as one of Norway’s largest publishing groups with a broad market basis and high quality publication activities within all areas of literature. Amortization of 6.67 percent (15 years) is applied to AB Kvälls tidningen Expressen’s acquisition of GT/Göteborgs-Tidningen AB, and is warranted by the strong position GT has in the local newspaper market in Gothenburg. Amortization of 10 percent is applied to the book publishers arsEdition GmbH, Ullstein Buchverlage GmbH and Thienmann Verlag GmbH in Germany, The Five Mile Press Pty Ltd. in Australia and the children’s book publisher The Templar Company Ltd. in UK due to the stability of operations and portfolio of strong book titles. 10 percent amortization is applied to Weldon Owen Publishing, Inc., in the US, which is justified by the company’s leading position in branded literature. Amortization of 10 percent is applied to Adlibris AB and is justified by the company’s strong position as the dominant Internet bookstore on the Swedish market. Amortization of 10 percent is also applied to Idé-Nyt A/S, which is warranted by the fact that the newspaper is an established brand and market leader in coupon book distribution in Denmark. The same amortization rate is also applied to Forlaget Benjamin ApS as a result of the strong position that the company enjoys in the Danish magazine market. Amortization of 10 percent was applied to goodwill from the acquisition of the Russian specialty magazine publisher Bonnier Publications, OOO and is justified by the company’s strong position on the market. Amortization of 10 percent is applied to Suorayhtiöt Oy, which is justified by the company’s strong position in the distribution of coupon books in Finland, among other areas. Amortization of 10 percent for Discshop Svenska Näthandel AB and Soft Capital Investment AB is warranted by these operations’ considerable market shares in a growing market. Individual amortization is applied to acquired film and broadcasting rights depending on the conditions in each contract. The buildings and land at DNEX Tryckeriet’s Akalla printing complex and Sydsvenskan Tryck AB’s printing plant in Fosie are assumed to have a useful life of 40 years. The useful life of the buildings’ fittings and fixtures is estimated to be 15 years. A useful life of 20 years is assumed for the presses, and the life of other equipment is assumed to be 10 years. The useful life in each main category is an average, since each category contains equipment with both shorter and longer estimated useful life. The printing plants were originally designed to meet what was expected to be a growing demand – especially with respect to fourcolor and on-line insertion capacity – since this was deemed to be more rational than increasing capacity by stages. The depreciation plan recognized that utilization of capacity would rise gradually during the first 10 years after commencement of production in 1993 at Akalla and in 1994 at Fosie. This would result in a better correlation between costs and revenues. In connection with the acquisition by Bonnier AB of the Akalla printing plant in 1998, the depreciation model was changed. The value assigned to Bonnier AB’s acquisition is subject to straight-line depreciation for the remainder of the above depreciation period. The depreciation model in which depreciation is based on gradually increased capacity utilization continues to apply to the Fosie plant, however. Straight-line depreciation is applied to newly acquired equipment with the abovementioned useful periods.

“Month-by-month” depreciation is applied, whereby equipment purchased in January and depreciated over five years is depreciated at a rate of 20 percent in the first year, while assets purchased in December are depreciated by one twelfth of 20 percent. Film and broadcasting rights are recognized under the heading Film rights. The costs for these are reported under the heading Amortization/depreciation and write-downs of intangible and tangible assets. Guaranteed royalties, reported as Prepaid expenses, are expensed following a case-by-case review, taking into account future estimated revenues. Royalty costs are included in Other external costs in the income statement. Intangible investments that are of significant value for the business in future years, and which are of a significant size, are capitalized and amortized over a conservatively estimated useful life. Fixed assets are reported on the asset side of the balance sheet at acquisition value, after deduction for accumulated depreciation according to plan and write-downs and with addition of possible write-ups. Negative goodwill. Negative Group goodwill consists of the amount by which real value of the Group’s share of acquired net assets exceeds the acquisition value. Negative goodwill is reported as noninterest-bearing provisions. When negative goodwill is associated with expectations of future losses and costs that have been identified in the acquisition and can be measured in a reliable manner, but does not represent identifiable liabilities, this portion of negative goodwill is reported in the income statement when the future losses and costs are realized. Any outstanding negative goodwill that does not exceed the real value of the acquired nonmonetary assets is reported in the income statement on an accrual basis over the remaining weighted average useful life for these assets. The portion of negative goodwill that exceeds the real value of these assets is reported immediately in the income statement. Dissolution of negative goodwill is reported in the income statement in the item Amortization/depreciation and write-downs of intangible and tangible assets. Write-downs. If there is any indication that an asset has declined in value, an assessment is made of the asset’s reported value. In cases in which an asset’s reported value exceeds its computed recovery value, the asset is written down to its recovery value. Leasing. The financial leasing agreements concluded mainly relate to vehicle leasing, and the amount is of negligible importance in assessing the Group’s position and income. In 2010, the Group has entered into a financial leasing agreement regarding Strandboulevarden 130 in Copenhagen. The property, essentially used by the Group, was sold to Danske Leasing A/S. The rent level is market based. The agreement includes a buyback right in 2016 at a fixed price. Major operational leasing agreements primarily involve rental agreements and a limited number of other leasing agreements. See also Note 6. Receivables. Receivables are stated in the amounts expected to be received, based on evaluation in each specific case. Receivables and liabilities in foreign currency. Receivables and liabilities in foreign currency are translated in the individual subsidiaries at year-end exchange rates, in accordance with RR 8. Foreign exchange gains are offset against foreign exchange losses, regardless of the currency.

bonnier ab annual report

2010

Notes to the Financial Statements

Note 1 cont. Short-term investments. Short-term investments are valued at the lower of acquisition value and market value at year-end. Items affecting comparability. Profit/loss from items affecting comparability is recorded in note to the Condensed income statement on page 6 in the Board of Directors’ Report. Items affecting comparability are specified in Note 9. Valuation of inventories. Inventories are valued at the lower of cost – in accordance with the first-in/first-out principle – and net realizable value at year-end, or alternatively at 97 percent of the acquisition value.

Reporting of revenues and expenses. Sales of goods are reported on delivery to the customer in accordance with the terms and conditions of sale. Advertising revenues are reported net. Gross revenues are reduced by discounts and by advertising tax. Circulation revenues are reported net. Gross revenues are reduced by commissions and any discounts that apply. Rental income is reported for the period to which renting pertains, and royalty and similar items in accordance with the financial implication of the particular agreement. Other operating revenues comprise revenues not related to the company’s current operations. In accordance with the Act relating to Tax on Advertisements and Advertising (1972:266), advertising has in 2010 been subject to advertising tax of 3 percent (3) of taxable value. Government grants for joint distribution of newspapers, and a small number of other minor subsidies, are reported as cost reductions. Employee benefits. For defined-benefit pension plans the Group is applying RR 29. There are a number of defined-contribution as well as definedbenefit pension plans within the Group. In Sweden and Germany, the employees are covered mainly by defined-benefit pension plans and in other countries mainly by defined-contribution plans. In defined-contribution plans, the company pays a fixed fee to a separate legal entity and has no obligation to pay any additional fees. The Group’s earnings are charged with the costs incurred as the benefits are earned. In defined-benefit plans, payments are made to employees and former employees based on salary at the time of retirement on pension and the number of service years. The Group carries the risk that the committed payments are made. Defined-benefit pension plans are both funded and unfunded. The net of the calculated present value of the commitments and the current value of the managed assets is reported in the balance sheet as either a provision or a long-term financial receivable. In such cases in which the surplus in a plan cannot be utilized fully, only that portion of the surplus that the company can recover through reduced future payments or repayments is reported. The pension costs and pension commitments for definedbenefit plans are calculated based on actuarial grounds. The method distributes the costs for pensions in pace with the benefits earned by the employee through service to the company that increases their right to future payments. The company’s commitments are valued at the present value of future payments by applying a discount rate of interest that corresponds to the interest on first-class corporate bonds or alternatively government bonds with a term equivalent to the actual commitments. The interest expenses less the expected return on the managed assets are classified as a financial expense. Other cost items in the pension cost are charged against operating profit. If the pension cost and pension provisions that are determined for Swedish plans in accordance with RR 29 deviate from the

bonnier ab annual report

2010

corresponding amount pursuant to FAR SRS’s Recommendation RedR 4, Reporting of Pension Liabilities and Pension Costs, an expense for a special payroll tax on the difference is also reported, in accordance with URA 43. The accounting principle described above for defined-benefit pension plans is only applied in the consolidated accounts. The Parent Company reports defined-benefit pension plans in accordance with RedR 4. The Parent Company has undertaken defined-benefit pension due to employees. The Parent Company’s obligations to pay pension in the future thus have a present value, determined for each employee by, among other factors, pension level, age and to what degree the full pension has been earned. This present value has been calculated in accordance with actuarial grounds and is based on the salary and pension levels at the closing date. The pension obligations are reported as a provision in the balance sheet. The pension commitment for salaried employees secured trough insurance with Alecta is reported in the Parent Company as a defined-contribution plan. The interest portion of pension costs for the year is reported as a financial expense. The interest rate specified by the PRI (Pension Registration Institute) is 5.0 percent (3.9). Other pension costs are charged against operating profit. Research and development. Expenditures for research programs are expensed as incurred. Development expenses are also normally expensed as incurred. These expenses primarily pertain to the development of new publishing products – paperbased and electronic – and normally do not fulfil the criteria of RR 15 for reporting as an asset in the balance sheet. Some major development projects are capitalized and amortized over their estimated useful lives. Software. Standard software is expensed. Expenses incurred for software that has been developed for or considerably adapted for the Group are capitalized if they probably offers financial advantages that exceed costs after one year. Loan costs. Interest expense for certain large investment projects has been capitalized in the consolidated accounts during the construction period. On the other hand, no capitalization has occurred in the subsidiaries concerned. The tax implications have been taken into account and are reported as deferred tax liability. Income tax. Reported income tax consists of tax to be paid or received for the year in question, adjustments pertaining to current tax for prior years, changes in deferred tax and participation in the tax of associated companies. All tax liabilities/receivables are valued at the nominal amount and in accordance with the tax regulations and tax rates determined or announced and which will certainly be approved. The concomitant tax effects for items reported in the income statement are also reported in the income statement. The tax effects of items booked directly against shareholders’ equity are reported against shareholders’ equity. Deferred tax is estimated in accordance with the balance sheet method, based on all temporary differences between reported and taxable values for assets and liabilities. Temporary differences arise mainly through valuation of loss carry-forwards and untaxed reserves. Deferred tax assets for loss carry-forward deductions or other future deductions for tax purposes are reported if it is likely that the deduction may be offset against a surplus for future taxation purposes. Due to the correlation between reporting and taxation, the deferred tax liability on untaxed reserves is reported in the Parent Company as part of untaxed reserves.

Notes to the Financial Statements

Note 2 Net sales and operating profit Net sales by business areas are distributed as follows: SEK M Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Total net sales

Group 2010 2009 6,265.0 6,710.3 5,658.5 5,671.5 9,978.1 9,523.5 3,827.8 4,203.4 1,757.9 1,866.2 3,404.9 3,196.0 –314.3 –304.0 30,577.9 30,866.9

Parent Company 2010 2009

Group 2010 2009 16,748.7 15,760.7 3,587.1 3,936.7 2,884.7 2,982.2 2,174.3 2,434.1 2,140.7 2,158.0 1,764.7 2,128.2 171.9 156.4 145.9 139.1 116.4 118.9 113.0 107.8 111.4 129.4 108.4 121.7 100.8 91.4 100.0 114.1 70.5 87.9 53.9 46.8 30.1 42.8 14.9 15.2 140.5 295.5 30,577.9 30,866.9

Parent Company 2010 2009 50.4 49.4

Group 2010 2009 615.5 571.8 –37.1 –208.0 1,002.3 529.0 268.3 192.8 190.0 –35.4 44.0 –385.4 –561.2 –452.7 1,521.8 212.1

Parent Company 2010 2009

54.0 54.0

53.1 53.1

Net sales by geographical markets are distributed as follows: SEK M Sweden Finland Norway Denmark United States Germany Russia UK France Australia Austria Switzerland Poland Slovenia Estonia Netherlands Lithuania Spain Other markets Total net sales

2.5 0.1

1.8

1.0

1.9

54.0

53.1

Operating profit/loss by business areas are distributed as follows: SEK M Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Total operating profit/loss

–208.7 –208.7

–210.2 –210.2

Note 3 Intra-group transactions

Purchases, % Sales, %

Parent Company 2010 2009 20.2 19.5 61.5 71.2

The price applied in connection with purchases and sales between Group companies is normally the lowest price in transactions with external parties.

bonnier ab annual report

2010

Notes to the Financial Statements

Note 4 Average number of employees, etc. Average number of employees

2010 Number of of whom employees women, % 49 53

Parent Company Subsidiaries Sweden United States Denmark Finland Germany Norway Russia Poland Estonia Slovenia Lithuania UK Bulgaria Australia France Ukraine Latvia Croatia Other countries Subsidiaries Joint ventures in Norway Group

5,357 1,050 805 709 423 362 333 204 165 135 87 83 74 59 43 20

50 55 51 58 75 57 64 55 72 63 25 61 26 73 49 65

9,909 280 10,238

2009 Number of of whom employees women, % 48 54

5,465 1,069 857 717 407 386 355 176 187 137 98 78 91 60 41 18 397 20 6 10,565

49 55 51 58 75 53 65 57 70 64 74 64 69 77 49 78 62 100 67 54

66 54

292 10,905

65 54

The average number of employees is calculated as the average number of employees on various dates during the year. Part-time employment is translated to full-time.

Board members and senior executives

2010 Number on of whom closing date women, %

2009 Number on of whom closing date women, %

Group Board members Presidents and other senior executives

810 496

20 29

819 498

20 25

Parent Company Board members President and other senior executives

11 3

11 4

18 25

2010 1.8 0.6

2009 1.7 0.5

Illness absenteeism for men Illness absenteeism for women

0.5 2.9

0.6 2.7

Illness absenteeism for employees aged â&#x20AC;&#x201C;29 Illness absenteeism for employees aged 30â&#x20AC;&#x201C;49 Illness absenteeism for employees aged 50 and older

0.9 2.3 1.3

0.4 2.5 1.2

Absence due to illness Parent Company Total absence due to illness, % of which, long-term illness absenteeism

bonnier ab annual report

2010

Notes to the Financial Statements

Note 5 Wages, salaries, other remuneration and social security costs Principles for remuneration to the Board and senior executives The Annual Meeting approves fees paid to Board members. Certain Board members of Bonnier AB are also paid fees for their work on the Boards of subsidiaries. No special fee is paid for committee work. Board members elected by the Annual Meeting and who are employed by Bonnier AB with subsidiaries, as well as employee representatives, do not receive Board fees from the Bonnier AB Group. The Chairman is remunerated by Bonnier Holding AB, Parent Company of Bonnier AB. A remuneration committee (Board Chairman Carl-Johan Bonnier as well as Board members Pontus Bonnier and Arne Karlsson) makes decisions concerning terms of employment for the President. The terms of employment for other senior executives are determined by the President in consultation with the Board Chairman. Variable portions of commissions on profits or bonuses have ceilings denominated in SEK or as a percentage of the basic salary. Group

SEK M Parent Company Subsidiaries in Sweden Subsidiaries outside Sweden Joint ventures in Norway Group

Board members who are not employed by Bonnier AB with subsidiaries have not received consulting fees or other remuneration from the Bonnier AB Group above and beyond Board fees. Agreement on severance pay and termination period For the President, the period of notice is 6 months when notice is served by the President and 18 months when served by the company. No severance pay is provided. The period of notice for other senior executives normally amounts to between 6 and 12 months. The period of notice when served by the company is subject to agreements and in certain cases there are also agreements covering severance pay. In cases in which severance pay is not made, the period of notice is usually longer. The total period for severance pay and period of notice ranges between 6 and 24 months. Only the company may trigger agreements governing severance pay.

2010 2009 Wages/salaries Wages/salaries and other Social (of which and other Social (of which remuneration security costs pension costs) remuneration security costs pension costs) 58.5 41.5 17.8 56.1 39.4 16.9 2,626.9 1,189.3 331.7 2,588.7 1,242.5 391.6 2,154.0 319.3 140.1 2,391.3 345.7 144.7 167.0 41.1 14.6 171.5 42.6 14.8 5,006.4 1,591.2 504.2 5,207.6 1,670.2 568.0

In addition SEK 0.0 M (0.8) of provisions made in prior years for approved restructuring measures in connection with pension agreements was transferred to Provisions for PRI pensions. The relevant social security costs have been treated in a corresponding manner. SEK 1.4 M (1.4) of the Parent Company’s pension costs pertains to current President. SEK 6.3 M (0.3) pertains to members of the Board and former Presidents (incl. Executive Vice Presidents).

The increase is primarily due to changes in interest rate assumptions. The company’s pension obligations to these persons, which are reported as a liability, amount to SEK 90.2 M (82.9). SEK 29.6 M (35.5) of the Group’s pension costs pertains to members of Boards and Presidents. The Group’s pension obligations to these persons, which are reported as a liability, amount to SEK 196.6 M (179.5).

Wages, salaries and other remuneration distributed among Boards and Presidents and Other employees:

SEK M Parent Company Subsidiaries in Sweden Subsidiaries outside Sweden Australia Bulgaria Denmark Estonia Finland France Germany Latvia Lithuania New Zealand Norway Poland Russia Slovenia UK Ukraine United States Other countries Subsidiaries outside Sweden Joint ventures in Norway Group

Boards and Presidents 9.8

2010 (of which bonus, etc.) 1.9

Other employees 48.7

Boards and Presidents 9.4

84.3

19.9

2,542.6

73.2

9.5

2,515.5

29.7 6.2 491.6 24.0 374.6 15.3 195.6

0.1

29.0

26.1 7.6 574.6 30.0 396.3 16.3 204.4 59.9 17.1 2.2 127.1 35.2 66.2 36.2 31.3 1.1 615.0 7.0 2,253.6

38.5

4,984.5

6.4 0.5 32.4 1.7 21.0 1.6 32.5 0.7

12.3

1.5 2.3 4.4 0.9 5.3 0.7 5.4

2.7

130.2 36.5 62.7 33.1 29.8 1.1 594.0

6.1 0.9 33.7 2.0 28.2 1.8 38.6 0.8 1.0 0.9 3.2 1.5 4.5 1.1 5.5 0.7 7.2

117.3

24.8

2,036.7

137.7

164.7

2.8

46.6

4,792.7

223.1

0.3 1.4 0.2 18.6

1.6

2.3 213.7

2009 (of which bonus, etc.)

0.6 4.0 22.2

0.3

0.1

1.7

Other employees 46.7

168.7

bonnier ab annual report

2010

Notes to the Financial Statements

Note 6 Leasing agreements Group 2010 2009

SEK M Financial leasing agreements

Parent Company 2010 2009

In 2010, the Group has entered into a financial leasing agreement regarding Strandboulevarden 130, see below. Other financial leasing primarily involves the leasing of vehicles. Operational leasing agreements Operational leasing agreements of material importance primarily involve rental agreements and a limited number of other leasing agreements. Leasing fees for the year Contracted future leasing fees Within 1 year 1–5 years More than 5 years

In 2010, Bonnier Publications A/S sold its property at Strandboulevarden 130 in Copenhagen to Danske Leasing A/S. The property is essentially used by the seller, who pays market-based

892.7

741.1

11.8

10.9

787.7 2,523.7 1,830.8

722.5 2,348.1 1,783.0

6.2 18.9

6.1 24.9

rent. Bonnier AB has taken on a joint rent lease. Bonnier Publications A/S is entitled but not obliged to buy back the property in 2016 at a fixed price.

Note 7 Fees to auditors SEK M Öhrlings PricewaterhouseCoopers AB Audit fees Audit-related fees Tax advisory fees Other fees

Group 2010 2009 18.4 0.5 1.9 5.5

16.5 0.6 2.1 6.2

KPMG AB Audit fees Audit-related fees Tax advisory fees Other fees

3.5 0.3 1.1 0.7

5.2 0.1 0.9 2.4

Other auditors Audit fees Audit-related fees Tax advisory fees Other fees Total

3.1 0.4 2.2 0.3 37.9

6.6 1.6 0.3 42.5

Parent Company 2010 2009 1.9

1.6

0.5 2.6

2.7

5.0

4.3

Note 8 Amortization/depreciation and write-downs of intangible and tangible fixed assets SEK M Intangible fixed assets (see also Note 29) Tangible fixed assets (see also Note 19 and 30) Total

bonnier ab annual report

2010

Group 2010 2009 –4,242.7 –3,874.7 –405.9 –466.9 –4,648.6 –4,341.6

Parent Company 2010 2009 –2.1 –2.1

–2.3 –2.3

Notes to the Financial Statements

Note 9 Items affecting comparability SEK M Capital gain on subsidiaries and associated companies sold Restructuring costs Total

Group 2010 2009 158.4 –108.6 –78.4 –172.6 80.0 –281.2

Items affecting comparability are shown in the following lines in the income statement: Other operating revenues Other external costs Personnel costs Total

164.0 –5.6 –78.4 80.0

5.4 –114.0 –172.6 –281.2

Note 10 Share of profit/loss in associated companies before tax The Group’s participation in associated companies with not insignificant profit/loss and in shareholders’ equity is presented in the consolidated a ccounts in accordance with the equity method,

SEK M Borås Tidning Tryckeri AB Dagens Nyheter Reservbolaget AB1) Scandinavian Media Alliance A/S SF Kino Stavanger/Sandnes AS Tidningarnas Telegrambyrå AB Tidsam AB Other Total 1)

as shown in Note 1. Share of profit/loss before tax is reported on a separate line as part of operating profit and the results by associat ed company were as follows: Ownership, % Dec. 31, 2010 50.0 100.0 50.0 49.0 30.0 42.5

Group 2010 2009 10.2 7.4 1.8 –10.1 5.9 6.0 6.9 12.6 16.8 7.2 7.1 2.2 –12,8 40.0 21.2

The company became a subsidiary in 2010.

Note 11 Income from participation in subsidiaries and associated companies SEK M Subsidiaries Dividends Group contribution, dividends Result from sale of shares Write-downs Group contribution, cover for losses Total

Parent Company 2010 2009 628.1 508.6 –11.8 –223.4 –52.7 848.8

Associated companies Write-downs Total

886.0 88.9 2.3 –0.5 976.7

–4.6 –4.6

bonnier ab annual report

2010

Notes to the Financial Statements

Note 12 Income from other securities and receivables held as fixed assets SEK M Dividends Interest income from Group companies Other interest income Capital gain on sales Write-downs Total

Group 2010 2009 1.3 2.1 1.0 2.5 –0.4 4.4

Parent Company 2010 2009 61.6

105.8

–2.1 59.5

–17.8 88.0

1.9 –1.1 2.9

Note 13 Other interest income and similar items and interest expense and similar items SEK M Other interest income and similar items Interest income from Group companies Other interest income Total Interest expense and similar items Interest expense owed to Group companies Other interest expense Exchange-rate differences Total

Group 2010 2009

Parent Company 2010 2009

0.4 29.2 29.6

7.3 50.9 58.2

7.4 5.2 12.6

13.1 0.6 13.7

–2.6 –553.0

–8.3 –492.6

–555.6

–500.9

–126.1 –52.2 7.6 –170.7

–142.4 –53.4 7.8 –188.0

Note 14 Appropriations Parent Company 2010 2009 –40.9 176.6 0.4 0.2 –40.5 176.8

SEK M Tax allocation reserve Accelerated depreciation Total

Note 15 Tax on profit/loss for the year SEK M Current tax expense Deferred tax expense Share of tax in associated companies Tax on profit/loss for the year Tax effect of Group contributions reported directly against shareholders’ equity Taxes paid

Group 2010 2009 –424.0 –304.7 156.4 180.0 –16.1 –9.0 –283.7 –133.7 –28.8

–16.0

–527.1

–419.7

Parent Company 2010 2009 –32.4 3.1 1.1 –29.3

1.1

Note 16 Adjustments for items not included in cash flow, etc. SEK M Amortizations, depreciations and write-downs Anticipated dividends, Group contributions Share of profit/loss in associated companies Capital gains Accrued interest income and interest expense Unrealized exchange-rate differences Other Total

bonnier ab annual report

2010

Group 2010 2009 4,648.6 4,341.6 –30.3 –153.5 93.7

3.0 110.7 –139.4

382.6 4,941.1

246.2 4,562.1

Parent Company 2010 2009 227.6 7.4 –367.5 994.3 11.8 34.5 –58.9 8.6 –143.9

–2.3 –10.0 31.9 7.4 1,028.7

Notes to the Financial Statements

Note 17 Intangible fixed assets Group 2010 2009 9,066.1 10,983.8 2.1 4.7 2,348.5 1,950.9 1,070.5 642.9 396.6 401.6 12,883.8 13,983.9

SEK M Goodwill Publishing rights Film rights Advances to suppliers Other intangible fixed assets Total Major goodwill items: SEK M TV operations Bonnier Corporation Tidnings AB Marieberg Forlaget Benjamin ApS Sydsvenska Dagbladets AB Ullstein Buchverlage GmbH Weldon Owen Publishing, Inc. Idé-Nyt A/S GT/Göteborgs-Tidningen AB Adlibris AB Other companies1) Total 1)

Acquisition value 7,395.3 2,005.5 1,870.6 291.3 224.6 194.0 192.9 172.0 156.0 153.7 2,451.3 15,107.2

Group Planned residual value 6,080.6 1,581.0

Outstanding number of years 17.9 16.2

162.7 38.8 47.8 101.3 82.0 20.1 69.7 882.1 9,066.1

8.8 3.5 2.5 5.3 8.8 1.9 4.2

Including goodwill items with acquisition value below SEK 100 M.

See also Note 29.

Note 18 Capitalized interest SEK M Tangible fixed assets include capitalized interest in the following amounts: Buildings and land Plant and machinery Total

Group 2010 2009 10.2 9.2 19.4

10.6 11.7 22.3

Note 19 Construction in progress and advance payments for tangible fixed assets SEK M Construction in progress Balance, Jan. 1 Costs accrued during the year Reallocations during the year Acquisitions and sales of companies Depreciation for the year Translation difference Total

Group 2010 2009 11.3 79.7 –21.6 –10.2 –1.1 58.1

165.9 45.9 –198.9 –0.4 –0.6 –0.6 11.3

bonnier ab annual report

2010

Notes to the Financial Statements

Note 20 Participations in associated companies

Holdings in associated companies: News and Crowd Casting AB Indirect holdings in associated companies: Bokrondellen HB Borås Tidning Tryckeri AB Börs-SM AB City Skåne AB Den Norske Bokdatabasen AS Elib AB Ess Media AB Fem Förlag AB Filmkameratene AS GP Sydsvenskan Media AB Hela Skåne AB HemNet Service HNS AB Lägenhetsbyte Sverige AB Media Mätning i Skandinavien MMS AB Nordic World AS Oy Mediuutiset Ab Platco Oy Pramedi AB Pressens Morgontjänst AB Pressens Morgontjänst KB Print Panel AB Scandinavian Media Alliance A/S SF Kino Stavanger/Sandnes AS Suomen Radioviestintä Oy Svenska Bio Lidingö, HB Taskukirja Loisto Oy Tidningarnas Telegrambyrå AB Tidningstryckarna/Vanda AB Tidningstryckarna/Vanda KB Tidsam AB Västerås Biografer, AB Svensk Filmindustri & Co HB Group total

Reg. office

556754-8440

Stockholm

30.0

750

0.0

969698-9996 556268-0578 556502-9088 556754-8515 990820023 556600-2126 556271-0649 556187-5054 937731647 556712-6197 556701-4922 556260-0089 556685-6018 556353-3032 988873160 1471935-8 1703676-3 556739-9497 556137-8638 916642-7139 556636-9491 13703108 882288072 1012135-9 916615-5698 0457897-7 556564-5487 556721-5545 969716-9630 556423-4788 902002-1664

Stockholm Borås Stockholm Malmö Oslo Stockholm Ystad Gothenburg Oslo Stockholm Malmö Stockholm Stockholm Stockholm Oslo Helsinki Helsinki Stockholm Stockholm Solna Stockholm Copenhagen Sandnes Helsinki Lidingö Helsinki Stockholm Stockholm Stockholm Stockholm Stockholm

25.0 50.0 50.0 50.0 12.5 25.0 33.4 50.0 50.0 50.0 50.0 33.0 45.0 24.0 50.0 50.0 33.3 50.0 50.0 50.0 33.3 50.0 49.0 27.7 50.0 25.0 30.0 50.0 50.0 42.5 50.0

1 20,000 500 500 15,000 500 334 510 50 1,000 300 3,300 450 1,225 5,000 2,000 100 500 500 1 200 150 490,000 20,414 1 35 149,301 50,000 1 42,500 1

0.0 25.5 0.1 0.1 1.9 0.9 0.4 0.3 4.9 0.2 0.2 4.4 0.7 6.3 0.0 3.3 0.1 0.0 0.1 0.6 0.0 0.1 28.6 1.5 0.0 1.1 45.3 0.1 0.0 25.8 0.0 152.5

54.5 98.0

Reported value refers to the Group. After write-downs, as circumstances dictate.

Associated companies reported for the first time in accordance with the equity method:

Group Proportion of shareholders’ equity1) 1.5 1.5

SEK M Filmkameratene AS Total 1)

Reported value in SEK M1)

Corp. Reg. No

Total acquisition value2) Total change in shareholders’ equity due to the application of the equity method instead of the acquisition method 1)

Number of participations/ shares

% of share capital

Reported value 4.9 4.9

Difference –3.4 –3.4

In the associated company.

bonnier ab annual report

2010

Notes to the Financial Statements

Note 21 Inventories, etc. SEK M Raw materials and consumables Semi-finished goods Finished goods Goods for resale Work in progress on contract Advance payments to suppliers Total

Group 2010 2009 126.6 154.3 90.6 105.2 544.4 669.8 317.0 272.4 188.8 181.6 103.6 105.3 1,371.0 1,488.6

Note 22 Short-term receivables SEK M Interest-bearing receivables Receivables from Group companies Receivables from subsidiaries Receivables from associated companies Other receivables Total Noninterest-bearing receivables Receivables from Group companies Receivables from subsidiaries Receivables from associated companies Accounts receivable - trade Tax receivables Other receivables Prepaid expenses and accrued income (Note 23) Total

Group 2010 2009

Parent Company 2010 2009

439.0

96.2

80.0

80.0 492.6

30.0 252.2 721.2

13.6 218.4 328.2

3.7 83.7

2.2 574.8

0.8

0.1 509.3

92.0

48.0 3,383.2 160.2 434.4 1,654.5 5,681.1

44.6 3,739.0 119.5 465.2 1,614.4 5,982.8

0.1 0.1

20.2

151.2 660.7

97.7 209.9

Note 23 Prepaid expenses and accrued income SEK M Noninterest-bearing receivables Accrued advertising revenues Accrued subscription revenues Accrued interest income Prepaid films Prepaid rents Prepaid marketing costs Prepaid editorial costs Exchange-rate differences in foward transactions Other items Total

Group 2010 2009 75.7 218.0 30.3 257.7 112.3 172.3 33.5 58.4 696.3 1,654.5

30.0 201.7 124.5 244.4 110.8 167.6 33.5 142.5 559.4 1,614.4

Parent Company 2010 2009

72.3

77.6

1.7

57.9 19.3 151.2

bonnier ab annual report

20.1 97.7

2010

Notes to the Financial Statements

Note 24 Provisions SEK M Interest-bearing provisions Provisions for PRI pensions Provisions for other pensions Reserves for restructuring costs Provisions for future purchase from minority owners Other provisions Total Noninterest-bearing provisions Provision for deferred tax Negative goodwill Other provisions Total

Group 2010 2009 1,125.0 352.6 31.3 202.6 3.4 1,714.9

1,048.3 359.5 47.8 227.7 22.8 1,706.1

365.3

367.3 2.3 29.5 399.1

21.9 387.2

Negative goodwill Acquisition value, Jan. 1 Reclassifications Additional negative goodwill Accumulated acquisition value, Dec. 31 Accumulated dissolution, Jan. 1 Accumulated dissolution, Dec. 31 Closing reported value

42.3 –2.3

Parent Company 2010 2009 44.3 114.6

42.9 107.5

158.9

150.4

40.0

2.3 42.3

–40.0 –40.0

0.0

2.3

Dissolution for the year is reported in the income statement on the line Amortization/depreciation and write-downs of intangible and tangible fixed assets. Refer also to Note 34.

Note 25 Long-term liabilities SEK M Interest-bearing liabilities Overdraft facilities Other liabilities to credit institutions Total Noninterest-bearing liabilities Other liabilities Total

Group 2010 2009

5,251.0 5,251.0

5,867.2 5,867.2

7.9 7.9

23.3 23.3

Parent Company 2010 2009 631.5 1,200.0 1,831.5

631.5 631.5

Note 26 Credit limits Group 2010 2009 8,500 9,250 3,882 5,823

SEK M Total loan programs1) Of which, utilized amount 1)

Parent Company 2010 2009 8,500 9,250

Excluding pension provisions.

bonnier ab annual report

2010

Notes to the Financial Statements

Note 27 Current liabilities SEK M Interest-bearing liabilities Liabilities to Group companies Liabilities to subsidiaries Liabilities to associated companies Reserves for restructuring costs Liabilities to credit institutions Liabilities to other companies Total Noninterest-bearing liabilities Advances from subscribers Other advances from customers Accounts payable - trade Liabilities to Group companies Liabilities to associated companies Tax liabilities Other liabilities Accrued expenses and prepaid income (Note 28) Total

Group 2010 2009 331.0

328.6

8.8 164.1 912.0

6.7 192.5 1,051.8

1,415.9

1,579.6

1,272.9 288.7 2,240.2 147.5 28.0 251.6 601.5 2,877.9 7,708.3

1,292.0 269.1 2,521.1 60.8 22.0 417.0 728.3 3,109.2 8,419.5

Parent Company 2010 2009

2,764.5

4,196.2

2,764.5

466.2 4,662.4

9.0 64.6

12.7 1.0

32.0 3.0 92.0 200.6

148.5 2.6 83.1 247.9

Note 28 Accrued expenses and prepaid income Group 2010 2009 517.8 538.1 273.6 257.3 259.1 242.7 128.5 73.6 37.2 48.7 208.9 155.8 129.0 152.9 274.1 405.6 1,049.7 1,234.5 2,877.9 3,109.2

SEK M Liability for vacation payments Social security charges Accrued royalties Accrued marketing costs Accrued interest expense Personnel-related accrued costs Exchange-rate differences in forward transactions Program rights Other items Total

Parent Company 2010 2009 8.9 10.7 3.0 4.1

37.7 9.1

16.2 5.0 23.3

33.3 92.0

23.8 83.1

Note 29 Intangible fixed assets, Group SEK M Acquisition value, Jan. 1, 2010 Purchases/Altered purchase price Sales and disposals Acquisitions and sales of companies Reclassifications Translation difference Accumulated acquisition value, Dec. 31 Amortization, Jan. 1, 2010 Sales and disposals Acquisitions and sales of companies Amortization for the year Reclassifications Translation difference Accumulated amortization, Dec. 31

Goodwill 16,484.2 99.2 –9.9 –747.8 –718.5 15,107.2 –5,418.8 12.3 29.1 –783.7 193.3 –5,967.8

Publishing rights 86.2 0.5

Film rights 8,386.6 3,809.1

Advances to suppliers 642.9 427.6

–0.1 –4.2 –3.8 78.7

–105.2 12,090.4

–81.3

–6,435.4

–2.9 4.2 3.6 –76.4

–3,307.5

1,070.5

1.2 –9,741.7

Write-ups, Jan. 1, 2010 Accumulated write-ups, Dec. 31 Write-downs, Jan. 1, 2010 Sales and disposals Acquisitions and sales of companies Write-downs for the year Translation difference Accumulated write-downs, Dec. 31 Planned residual value, Dec. 31 Planned residual value, Dec. 31, 2009

–0.3

Other 1,017.0 179.9 –49.6 5.3 –7.5 –68.0 1,077.1

Total 26,616.9 4,516.3 –59.5 –742.6 –11.7 –895.5 29,423.9

–602.1 46.0 –2.6 –130.7 –1.3 40.9 –649.8

–12,537.6 58.3 26.5 –4,224.8 2.9 239.0 –16,435.7

0.1 0.1

–13.4 0.7 –18.3 0.2 –30.8

–95.5 –1.7 1.3 –17.9 9.3 –104.5

–81.6 –2.4 1.2 0.4 9.1 –73.3

–0.2

9,066.1

2.1

2,348.5

1,070.5

396.6

12,883.8

10,983.8

4.7

1,950.9

642.9

401.6

13,983.9

0.1

Write-downs for the period are reported in the income statement on the line Amortization/depreciation and write-downs of intangible and tangible fixed assets.

bonnier ab annual report

2010

Notes to the Financial Statements

Note 30 Tangible fixed assets, Group

SEK M Acquisition value, Jan. 1 Purchases Sales and disposals Acquisitions and sales of companies Reclassification Translation difference Accumulated acquisition value, Dec. 31

Buildings and land 2010 2009 1,592.1 1,892.3 156.0 6.9 –2.5 –236.9 –1,292.3 –66.6 15.0 –18.7 –3.6 449.6 1,592.1

Depreciation, Jan. 1 Sales and disposals Acquisitions and sales of companies Depreciation for the year Reclassification Translation difference Accumulated depreciation, Dec. 31

–410.7 0.2 331.9 –26.4 0.1 3.8 –101.1

–418.7 13.0 25.9 –32.6

Write-downs, Jan. 1 Purchases Sales and disposals Acquisitions and sales of companies Write-downs for the year Reclassification Translation difference Accumulated write-downs, Dec. 31

–632.4

–633.0

1.7 –410.7

Plant and machinery 2010 2009 3,008.4 3,142.9 9.3 20.8 –8.0 –162.5 –25.3 –129.5 –45.9 141.5 –6.1 –4.8 2,932.4 3,008.4

Equipment, tools, fixtures and fittings 2010 2009 3,078.8 2,758.1 206.0 224.2 –312.4 –134.5 –156.3 –51.0 61.4 318.4 –129.3 –36.4 2,748.2 3,078.8

–1,782.0 5.7 25.0 –143.8 46.9 4.8 –1,843.4

–1,725.8 81.3 56.1 –179.8 –16.5 2.7 –1,782.0

–2,254.3 300.9 87.4 –231.4 –46.5 98.0 –2,045.9

–1,837.7 95.2 38.7 –243.7 –335.2 28.4 –2,254.3

–554.6 1.0 0.1

–554.6

–100.0

–95.6

1.3

–0.4 0.1

–1.3

4.0 0.7 –8.9 –0.2 –100.0 724.5

1.6 –12.2

0.6 –632.4

–553.8

–554.6

3.6 70.0 –3.9 –0.5 1.7 –29.1

Planned residual value, Dec. 31

336.3

549.0

535.2

671.8

673.2

Reported value outside Sweden Buildings Land

178.5 1.4

39.5 1.6

98.8 17.8

448.5 22.0

Taxable value in Sweden Buildings Land

618.6

Write-downs for the year are reported in the income statement on the line Amortization/depreciation and write-downs of intangible and tangible fixed assets.

Note 31 Tangible fixed assets, Parent Company

SEK M Acquisition value, Jan. 1 Purchases Sales and disposals Accumulated acquisition value, Dec. 31 Depreciation, Jan. 1 Sales and disposals Depreciation for the year Accumulated depreciation, Dec. 31 Planned residual value, Dec. 31 Accelerated depreciation, Jan. 1 Accelerated depreciation for the year Accumulated accelerated depreciation, Dec. 31

bonnier ab annual report

2010

Equipment, tools, fixtures and fittings 2010 2009 14.2 22.5 0.9 0.6 –2.2 –8.9 12.9 14.2 –7.3 2.2 –2.1 –7.2

–13.2 8.2 –2.3 –7.3

5.7

6.9

–1.1 0.4 –0.7

–1.3 0.2 –1.1

Notes to the Financial Statements

Note 32 Financial fixed assets, Group

SEK M Acquisition value, Jan. 1, 2010 Purchases Change in share of equity Sales and disposals Acquisitions and sales of companies Reclassification Translation difference Accumulated acquisition value, Dec. 31

Write-ups, Jan. 1, 2010 Translation difference Accumulated write-ups, Dec. 31

Other Interest-bearing Other securities receivables interest-bearing held as from associated long-term fixed assets companies receivables 63.7 5.4 45.0 33.4 0.4 26.0

Participations in associated companies 143.9 6.1 12.7 –18.7 18.6 –1.5 –3.0 158.1

–2.2 –1.0 –0.7 –3.1 90.1

5.9

–10.6

157.7

5.8

–4.0 –2.5 53.9

–42.6 1,103.0

0.5 –0.1 0.4

5.9

Write-downs, Jan. 1, 2010 Sales and disposals Write-downs for the year Reclassification Translation difference Accumulated write-downs, Dec. 31

Deferred tax receivables 937.8 50.1

–10.0 –8.2 –2.1 9.1 –0.3 –11.5

–4.4

–5.4

–21.4

–0.3 0.8 0.1 –3.8

–5.4

0.1 –21.3

Planned residual value, Dec. 31

152.5

86.7

0.4

32.6

1,103.0

Planned residual value, Dec. 31, 2009

139.8

59.8

0.0

23.6

937.8

Write-downs for the year are reported in the income statement on the lines Other operating revenues and Income from other securities and receivables held as fixed assets.

Note 33 Financial fixed assets, Parent Company Participations in subsidiaries 26,300.2 8.4 20.3 6.0

SEK M Acquisition value, Jan. 1, 2010 Acquisitions/new loans Shareholder contributions Reclassification Translation difference Sales/amortization Accumulated acquisition value, Dec. 31

Write-downs, Jan. 1, 2010 Reclassification Sales and disposals Write-downs for the year Accumulated write-downs, Dec. 31

Participations in associated companies 11.0

–17.1 26,317.8

Interest-bearing receivables from Group companies 2,768.8 2.0 26.4

Deferred tax receivables 30.8 3.1

–36.7 –224.5 2,534.0

33.9

2,534.0

33.9

2,768.8

30.8

Participations in other companies

–6.0

5.0

2.0

–9,999.8 –5.3 5.3 –223.4 –10,223.2

–9.6 5.3

–4.3

–2.0 –2.0

Planned residual value, Dec. 31

16,094.6

0.7

0.0

Planned residual value, Dec. 31, 2009

16,300.4

1.4

Write-downs for the year are reported in the income statement on the lines Income from participation in subsidiaries and Income from other securities and receivables held as fixed assets.

Note 34 Provisions

SEK M Value, Jan.1, 2010 Provisions/reductions Utilized Reclassification Other incl. acquisitions/sales of companies Translation difference Value, Dec. 31

PRI pensions 1,048.3 119.2 –43.4 0.9 1,125.0

Other pensions 359.5 40.5 –34.8 1.4 2.5 –16.5 352.6

Group Provision for future pur Restructuring chase from costs min. owners 47.8 227.7 11.6 –14.3 –6.7 –1.2 –13.0 –1.0 –17.0 31.3 202.6

Parent Company

Deferred tax 367.3 54.4

–54.0 –2.4 365.3

Other 54.6 –6.0 –16.6 –3.1 –3.6 25.3

PRI pensions 42.9 3.5 –2.1

Other pensions 107.5 12.8 –5.7

44.3

114.6

The closing balance for provisions for restructuring costs pertains to Books, Broadcasting & Evening Paper, Morning Paper and Other business areas. Provisions will be utilized gradually during the period 2011–2012. Provision for future purchase from minority owners pertains to shares in companies where Bonnier AB Group has conducted option agreements to buy the shares from the minority shareholders.

bonnier ab annual report

2010

Notes to the Financial Statements

Note 35 Participations in subsidiaries

1. 2. 3. 4.

5. 6.

7. 8.

Corp. Reg. No. B Media Invest AB 556748-2632 Bink AB 556166-2023 Bonnier Annons AB 556458-9124 Bonnier Books AB 556233-3111 Adlibris AB 556261-3512 Adlibris ApS 29619549 Adlibris Finland Oy 0195663-7 Bonnier Publishing Ltd. 01273558 Bonnier Media Ltd. 05311887 Editions Piccolia, S.A. 380771733 The Five Mile Press Pty. Ltd. 005966245 The Templar Company Ltd. 01549157 Bonnierförlagen AB 556023-8445 Albert Bonniers Förlag AB 556203-3752 Bokförlaget Bonnier Fakta AB 556145-9636 Bokförlaget Forum AB 556014-8727 Bokförlaget Maxström AB 556526-8918 Bonnier Audio AB 556074-9318 Bonnier Utbildning AB 556203-2481 Förlaget Rebus AB 556483-4207 Kartago Mediahus AB 556512-5381 Månadens Bok, HB 902003-8106 Pocketgrossisten Bonnierförlagen AB 556560-4583 Samdistribution Bonnierförlagen AB 556042-9887 Wahlström & Widstrand, AB 556043-7724 Jultidningsförlaget Semic AB 556166-9572 Kustannusosakeyhtiö Tammi 0599340-0 Bonnier Kirjat Oy 2320862-1 Readme.fi Oy 2160350-5 Pandaförsäljningen AB 556369-7720 SEMIC International AB 556046-1336 Bonnier Brands AB 556802-5646 Bonnier Business Press AB 556490-1832 Bonnier Business (Polska) Sp. z o.o. 0000024847 Informedia Polska Sp. z o.o. 015879064 Puls Biznesu Net S.A. 0000062826 Bonnier Business Media OÜ 11460687 Bonnier Business Press, ZAO N 76340 Bonnier Business Press International AB 556555-7187 Dagens Medicin Sverige AB 556560-0037 Dagens Medisin AS 979914253 Editora Paulista de Comunicações Científicas e CNPJ 08.528.247 Técnicas Ltda. Medicine Today International Advertising Medad AB 556617-5518 Medicine Today Poland Sp. z o.o. 0000099422 Bonnier Holding Ukraine LLC 33629876 Rynok Media LLC 33784724 Business Media Group AD 839/2003 ˇ Casnik Finance, d.o.o. 13140200 Dagens Industri AB 556221-8494 Dagens Industri Privatekonomi AB 556509-5188 di.se online AB 556509-7267 DiTV AB 556110-9140 Processor, AB 556023-6258 Verslo Žinios, UAB 1068281 Äripäev, AS 10145981 Bonnier Business Publishing AB 556468-8892 Bonnier Deutschland GmbH HRB 156443 Bonnier Media Deutschland GmbH HRB 136800 arsEdition GmbH HRB 145362 Bonnier 1. Beteiligungs- und Verwaltungs GmbH HRB 103563 BuchVertrieb Blank GmbH HRB 92253 Carlsen Verlag GmbH HRB 43092 Hörbuch Hamburg HHV GmbH HRB 98748 Libresco GmbH HRB 723887

bonnier ab annual report

2010

Reg. office Stockholm Västerås Stockholm Stockholm Stockholm Copenhagen Helsinki Chichester Chichester St-Michel-sur-Orge Melbourne Dorking Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Helsingborg Stockholm Stockholm Stockholm Stockholm Stockholm Sundbyberg Helsinki Helsinki Helsinki Karlstad Stockholm Stockholm Stockholm Warsaw Warsaw Warsaw Tallinn St. Petersburg Stockholm Stockholm Oslo São Paulo Stockholm Warsaw Kiev Kiev Sofia Ljubljana Stockholm Stockholm Stockholm Stockholm Stockholm Vilnius Tallinn Stockholm Munich Munich Munich Hamburg Vierkirchen Hamburg Hamburg Stuttgart

% of share capital 100.0 100.0 100.0 100.0 84.9 100.0 100.0 100.0 100.0 100.0 100.0 65.0 100.0 100.0 100.0 100.0 91.0 70.0 100.0 100.0 100.0 70.0 100,0 100.0 100.0 100.0 100.0 100,0 95.0 100.0 100.0 100,0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.9 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 72.8 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

% of votes1)

Number of participations/shares 1,000 20,000 1,000 2,500

Reported value SEK M 19.8 2.4 0.1 1,604.5

1,000 200,000

0.1 1,978.5

1,000 30,000,000

0.1 1,014.4

3) 2)

Notes to the Financial Statements

NotE 35 cont.

9. 10. 11.

12.

13.

14.

15. 16.

Pendo Beteiligungsgesellschaft mbH Piper Verlag GmbH R. Piper & Co Verlag GmbH Thienemann Verlag GmbH Ullstein Buchverlage GmbH K. Verlags- und Vertriebsgesellschaft mbH Bonnier Digital Consumer Services AB Bonnier Digital Services AB Bonnier Entertainment AB Bonnier Gaming AB Bonnier Lottery AB Mix Megapol.com AB Sagev AB Soft Capital Investment AB Soft Capital Holding Ltd. Bertil - bingo på Internet Ltd. Internet and Media Consulting Ltd. Know How Gaming Ltd. Bonnier MultiMedia AB Homeenter AB Discshop Svenska Näthandel AB Discshop Alandia Ab Homeenter Alandia Ab Homeenter Polska Sp. z o.o. SF Bio AB Biograf Sture AB SF Anytime AB SF Media AB Svensk Filmindustri Kino AS Svensk Filmindustri, Kino Skien AS Svensk Filmindustri, AB Filmbolaget Treklövern HB FS Film Oy InfoCom Bonnier ICB AB Juonifilmi Oy SF Norge AS Syncron Film AS Sonet Film AB Happy Life Animation GmbH Svensk Filmproduktion 2 KB Svensk Filmindustri International AB Bonnier Euro Holding AB TV4 AB C More Group AB C More Entertainment AB C More Entertainment Oy Enterprize UNLMT AB Nordisk Television AB TV4 Expressen Mobilab AB TV4 Sport AB TV4 Stockholm AB TV4 Sverige AB TV4 Vision AB Bonnier Finans, AB Bonnier Belgium N.V. Bonnier Financial Services AB Partitiv AB Bonnier Holding Norway AS Bonnier Blader AS Bonnier Media AS Capris AS Bonnier International Magazines AB Bonnier Magazine Group A/S Bonnier Magazine Data A/S Bonnier Publications A/S

Corp. Reg. No. HRB 150968 HRB 71118 020.4.900.429-9 HRB 3287 HRB 91717 HRB 4862 556796-5487 556496-0630 556047-0667 556096-9411 556525-5535 556472-0554 556761-1941 556682-8413 C 45931 C 38582 1451981 003639V 556031-8775 556293-3381 556604-9952 1932506-7 1655221-3 017467294 556035-1651 556503-3650 556748-2616 556379-4014 962277055 982856493 556003-5213 916404-8804 1571957-9 556187-4115 1914756-3 947714732 964346453 556478-1705 HRB 82146 916618-2924 556540-3937 556725-8644 556242-7152 556630-5180 556053-7309 1530976-4 556728-0085 556273-6032 556630-6808 556246-8164 556423-2626 556289-4237 556417-6898 556026-9549 0831519731 556067-9887 556789-5403 990212880 984424221 987904151 990335214 556072-0293 53376614 26340136 12376405

Reg. office Munich Munich Zürich Stuttgart Berlin Freiburg Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Valletta Valletta Br. Virgin Islands Douglas Stockholm Burlöv Stockholm Mariehamn Mariehamn Warsaw Stockholm Stockholm Stockholm Stockholm Tønsberg Skien Stockholm Stockholm Helsinki Stockholm Helsinki Oslo Oslo Stockholm Berlin Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Helsinki Stockholm Stockholm Stockholm Stockholm Stockholm Malmö Stockholm Stockholm Brussels Stockholm Stockholm Oslo Oslo Oslo Oslo Stockholm Copenhagen Copenhagen Copenhagen

% of share capital 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 91.0 100.0 100.0 100.0 66.0 100.0 67.0 100.0 99.9 100.0 100.0 100.0 100.0 100.0 69.0 100.0 100.0 100.0 65.0 100.0 100.0 65.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

% of votes1)

Number of participations/shares

Reported value SEK M

1,000 16,000 150,000

0.1 0.5 1,151.3

1,000

0.1

1,000,000

308.8

1,100

11.7

1,000 157

1.0 1,663.4

bonnier ab annual report

2010

Notes to the Financial Statements

NotE 35 cont.

Benjamin Media A/S Benjamin Publications AS Benjamin Media AB Bonnier A/S Bonnier Business Press A/S BAM (2005) Ltd. Dagbladet Børsen A/S Dagens Medicin A/S SF Film A/S SF Film Productions ApS Bonnier Publications AB Bonnier Publications Försäljning AB Suoramedia Oy Vi i villa AS Bonnier Publications Annons AB Bonnier Publications Oy Bonnier Publications International AS Bonnier Publications Ltd. Bonnier Publications, OOO Børsen Forum A/S Bonnier Business Forum AS Bonnier Business Forum Oy Idé-Nyt A/S PSE 38 nr 2090, A/S 17. Bonnier Media Holding AB Spring Media Inc. Bonnier States AB Bonnier US Holding Inc. Bonnier Corporation Bonnier Active Media, Inc. Transworld Magazine Corporation Warren Miller Entertainment Bonnier Working Mother Media, Inc. The Parenting Group, Inc. World Publications Holding, LLC Virgin Islands Publications, LLC World Entertainment Services, LLC World Publications, LLC World Publications II, LLC World Publications III, LLC World Sports and Marketing, LLC Byeway Books Inc. Weldon Owen Publishing, Inc. Weldon Owen Education, Inc. Weldon Owen Education Ltd. Weldon Owen, Inc. Weldon Owen Magazine, Inc. Weldon Owen Proprietary, Ltd. Weldon Russel Proprietary, Ltd. 18. Bonnier Solutions AB 19. Bonnier Tidskrifter AB Allt om Mat på Nätet AB AlltomBarn i Stockholm AB B2B Sales AB Bonnier Zoo Förlag AB City Bild i Stockholm AB Netsu AB Privata Affärer Förlag AB Resumé Förlag AB Spoon Experience AB Spoon Publishing AB Spoon On Demand AB Stockholm City i Sverige AB Stockholm City i Sverige Försäljning AB vetgirig internet quiz Stockholm AB

bonnier ab annual report

2010

Corp. Reg. No. 25796829 986321829 556659-2522 70978016 24205258 SC203787 76156328 20052678 21388939 26390168 556105-0351 556548-7096 0741464-4 983435564 556534-9692 0996378-6 977041066 212894 1087746660540 19409775 990238367 1878245-0 11450970 25044649 556262-5052 20-4505209 556707-0007 98-0494191 98-0522510 13-2620517 13-3936719 22-3828960 80-0256860 13-4034430 59-3754944 30-0093378 59-3574946 30-0093378 59-3670973 59-3670971 59-3754949 161671300 52-2098266 94-3394914 79-229-571 94-3097435 94-3342617 003733720 003603343 556748-2624 556012-7713 556006-0658 556067-9697 556662-4713 556042-5877 556556-2658 556692-8049 556529-6851 556150-5180 556637-5597 556561-8989 556444-7489 556320-6381 556631-7433 556733-6713

Reg. office Copenhagen Oslo Stockholm Copenhagen Copenhagen Edinburgh Copenhagen Copenhagen Copenhagen Copenhagen Lidingö Lidingö Helsinki Oslo Stockholm Helsinki Oslo Limassol Moscow Copenhagen Oslo Helsinki Herlev Copenhagen Stockholm Delaware Stockholm Delaware Delaware New York New York Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Kansas Delaware Delaware Auckland Delaware Delaware Sydney Sydney Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Huddinge

% of share capital 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 51.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 80.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

% of votes1)

Number of participations/shares

Reported value SEK M

10,000

2.5

1,000 28,000

0.1 669.6

Notes to the Financial Statements

NotE 35 cont.

20. Bonnier Tyskland Holding AB 21. GI Viktkoll AB GI-boxen Sweden AB 22. Giftsvampen i Stockholm AB 23. Marieberg International AB 24. Moving Media + AB 25. Nordic Broadcasting Oy MTV Oy Alexpress Oy MTV Tekniikka Oy Subtv Oy Suomen Kansallisviestintä Oy Suomen Uutisradio Ab, Oy Suomen Sävelradio Oy NB Finance Oy 26. Sural AB Bildhuset Images i Stockholm AB 27. Tidnings AB Marieberg Bold Printing Group AB DNEX Tryckeriet AB Sydsvenskan Tryck AB Bonnier Dagstidningar AB Bonnier Office AB Citypaketet Sweden AB Citypaketet KB Dagens Nyheter, AB Bokförlaget DN, AB Dagens Nyheter Annonsförsäljning, AB Dagens Nyheter Reservbolaget AB DN På Stan, AB Fordonstorget AB Koll KB Kvällstidningen Expressen, AB Generate Sweden AB GT/Göteborgs-Tidningen AB Kvällsposten AB Segelman Retail Television AB Spörten, AB Marieberg Media AB Pressens Bild Images AB Sydsvenska Dagbladets AB City Malmö Lund AB Fastighetsaktiebolaget Nr 48 Cronholm Kompetens i Skåne AB Look Media 2 AB Skånemedia AB Otto Marsvin KB SkåneMedia Försäljnings AB Sydsvenska Dagbladets Försäljnings AB Comzo 2 AB Sydsvenskan Innovator AB Total Reported value 2009

Corp. Reg. No. 556548-5207 556674-9387 556709-4486 556064-0723 556759-0376 556821-6450 1882626-5 1093944-1 0722557-9 0414814-1 0224147-3 0810342-6 1042680-6 0577699-1 2368678-9 556158-9531 556102-7169 556002-8796 556312-2554 556246-8180 556256-4038 556414-2155 556162-7745 556621-8300 969711-9817 556246-8172 556334-7961 556320-6704 556750-4740 556246-8156 556655-4555 969697-5862 556025-4525 556657-0049 556284-8720 556051-3599 556646-7113 556206-2868 556334-7953 556005-5104 556002-7608 556743-5580 556169-8126 556754-8796 556680-7276 556620-7105 938200-2393 556622-0751 556335-2722 556722-4398 556230-7792

Reg. office Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Helsinki Helsinki Helsinki Jyväskylä Helsinki Helsinki Helsinki Hyvinkää Helsinki Stockholm Stockholm Stockholm Stockholm Stockholm Malmö Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Gothenburg Malmö Stockholm Stockholm Stockholm Stockholm Malmö Malmö Malmö Malmö Malmö Malmö Kristianstad Malmö Malmö Stockholm Malmö

% of share capital 100.0 91.0 60.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 74.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 97.4 100.0 100.0 66.7 66.7 100.0 100.0 100.0 100.0 100.0 66.7 66.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 90.5 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

% of votes1)

Number of participations/shares 250,000

Reported value SEK M 30.1

200,000 1,000 1,000 800,002

24.5 0.1 0.1 4,668.3

1,000

8.5

29,842,230

2,934.0

6) 6)

16,094.6 16,300.4

In the event of deviation from equity share. The Bonnier AB Group has conducted an options agreement pertaining the remaining shares, which means that the Bonnier AB Group in practice carries the financial benefits and risks for 100 percent of the shares. Accordingly, the holding is reported in the consolidated financial statements without minority interest. 3) Of which 30 percent is owned by Bonnier Business Press AB. 4) Owned by 45.8 percent by TV4 AB and by 33.5 percent by AB Kvällstidningen Expressen. 5) Owned by 28 percent by MTV Oy, 20 percent by Alexpress Oy, 13 percent by MTV Tekniikka Oy and by 13 percent by Suomen Kansallisviestintä Oy. 6) Owned by 33.3 percent by AB Dagens Nyheter and by 33.3 percent by Sydsvenska Dagbladets AB. 1)

bonnier ab annual report

2010

Notes to the Financial Statements

NotE 36 Joint ventures Corp. Reg. No. 991172041 948061937 556481-8259 981037316 974682680 994278258 984058128 987204958 914752876 556812-6279

Indirect holdings Cappelen Damm Holding AS Cappelen Damm AS Askeladden Förlag AB Ex Libris Forlag AS Mapsolution AS Sentraldistribusjon AS Cappelen Damm Salg AS Larsforlaget AS Tanum AS Templ AB

Reg. office Oslo Oslo Gothenburg Oslo Oslo Oslo Oslo Oslo Oslo Gothenburg

% of share capital 50.0 100.0 100.0 100.0 100.0 100.0 100.0 66.0 100.0 50,0

The above companies are joint ventures where Bonnier AB is joint owner under the collaboration agreement on determining influence. Cappelen Damm Holding AS runs publishing operations in Norway. The joint-owned companies are reported in the Bonnier AB Group in accordance with the proportional method. The Group’s share of the average number of employees, salaries etc. in the joint venture companies appears from Note 4 and Note 5. The following amount constitutes the Group’s stake in the joint venture companies assets and liabilities and is included in the Group’s balance sheet.

Group SEK M Fixed assets Current assets Total assets

2010 322.6 324.2 646.8

2009 343.0 357.7 700.7

Shareholders’ equity Provisions Liabilities Total shareholders’ equity and liabilities

106.5 51.8 488.5 646.8

79.8 70.1 550.8 700.7

The Bonnier AB Group has no contingent liabilities for the joint venture companies. On the other hand, the owned share of the joint venture companies’ contingent liabilities and assets pledged is included. The following amount constitutes the Group’s share in the joint venture companies income and expense and is included in the Group’s income statement. Group

Note 37 Pledged assets SEK M Pertaining to pensions and similar commitments Other pledged assets

Pertaining to long-term liabilities to financial institutions Real estate mortgages Other pledged assets

Total

2010 863.8 –810.5 53.3 –16.9 36.4 –2.7 33.7

SEK M Net sales Operating costs Operating profit/loss Income from financial investments Profit after financial items Tax Profit/loss for the year

2009 935.9 –884.2 51.7 –26.8 24.9 –17.1 7.8

Group 2010

2009

46.2 46.2

4.4 4.4

4.8 4.8

750.0 7.1 757.1

51.0

761.5

Group 2010

2009

Note 38 Contingent liabilities SEK M Contingent liabilities on behalf of subsidiaries Contingent liabilities on behalf of associated companies Partnership companies Other contingent liabilities Total

The Parent Company’s contingent liabilities on behalf of subsidi aries pertain to liability for the subsidiaries’ overdraft facilities. In the Other contingent liabilities category, the major items are contingent liabilities for film and program rights, contingent

bonnier ab annual report

2010

41.0 2.1 1,706.0 1,749.1

38.7 1.7 1,242.5 1,282.9

Parent Company 2010 2009 10,098.2 12,762,0

30.2 10,128.4

34.1 12,796.1

liabilities to FPG (Försäkringsbolaget Pensionsgaranti) pertaining to collateral for pension commitments and contingent liabilities for certain disputes.

Notes to the Financial Statements

Note 39 Definitions of key ratios EBITA (Earnings Before Interest, Tax and Amortization) Operating profit before capital gains/losses, before share of profit/ loss in associated companies and before goodwill and other writedowns and depreciation related to acquisitions. Operating capital Total capital employed, less noninterest-bearing provisions and liabilities, excluding accrued interest expense, and less interestbearing assets and accrued interest income. Net debt/equity ratio (gearing ratio) Interest-bearing provisions and liabilities, including accrued inter est expense, and less interest-bearing assets and accrued interest income, divided by shareholders’ equity and minority interests.

Note 40 Information about Bonnier AB and its Parent Company

Bonnier AB, corporate registration no. 556508-3663, is a wholly owned subsidiary of Bonnier Holding AB, 556576-7463, a sub sidiary of Albert Bonnier AB. The companies’ registered offices are located in Stockholm, Sweden. Bonnier AB is located on Kungsgatan 49 and its postal address is SE-113 90 Stockholm. Bonnier Holding AB and Albert Bonnier AB are located on Torsgatan 21 with postal address SE-113 90 Stockholm. Bonnier AB conducts operations in the media sphere via subsidiaries. The Parent Company of the largest and smallest group in which Bonnier AB is a subsidiary and in which consolidated accounts are prepared is Albert Bonnier AB, 556520-0341, Stockholm.

Return on operating capital Operating profit as a percentage of the average total assets, less noninterest-bearing provisions and liabilities excluding accrued interest expense, and less interest-bearing assets and accrued interest income. Return on equity Profit before minority participation as a percentage of average shareholders’ equity and minority interests. Operating margin Operating profit as a percentage of net sales. Equity/assets ratio Shareholders’ equity and minority interests divided by total assets.

bonnier ab annual report

2010

The income statements and balance sheets will be submitted to the Annual Meeting on May 2, 2011, for adoption.

Stockholm, March 31, 2011

Bรถrje Andersson

Carl-Johan Bonnier Chairman

Per-Olov Atle

Hans-Jacob Bonnier

Pontus Bonnier First Vice Chairman

Jeanette Bonnier

Lars Carlberg

Bengt Braun Second Vice Chairman

Claes Hallin

Arne Karlsson

Jonas Bonnier President

Pernilla Strรถm

Our audit report was issued on April 14, 2011 ร hrlings PricewaterhouseCoopers AB

Bertil Johanson Authorized Public Accountant

bonnier ab annual report

2010

Audit Report To the annual meeting of the shareholders of Bonnier AB Corporate identity number 556508-3663

We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the managing director of Bonnier AB for the year 2010. These accounts and the administration of the company and the application of the Annual Accounts Act when preparing the annual accounts and the consolidated accounts are the responsibility of the board of directors and the managing director. Our responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on our audit. We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and significant estimates made by the board of directors and the managing director when preparing the annual accounts and consolidated accounts as well as evaluating the overall presen-

tation of information in the annual accounts and the consolidated accounts. As a basis for our opinion concerning discharge from liability, we examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the managing director. We also examined whether any board member or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion set out below. The annual accounts and the consolidated accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the company’s and the Group’s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The statutory administration report is consistent with the other parts of the annual accounts and the consolidated accounts. We recommend to the annual meeting of shareholders that the income statements and balance sheets of the parent company and the Group be adopted, that the profit of the parent company be dealt with in accordance with the proposal in the administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year.

Stockholm, April 14, 2011 Öhrlings PricewaterhouseCoopers AB

Bertil Johanson Authorized Public Accountant

bonnier ab annual report

2010

Multi-year Summary From the income statement SEK M Net sales Growth EBITA EBITA margin Operating profit Operating margin Profit/loss after financial items Profit/loss for the year

2010 30,578 –0.9% 2,111 6.9% 1,522 5.0% 1,000 711

2009 30,867 4.3% 1,185 3.8% 212 0.7% –228 –381

2008 29,597 1.3% 2,414 8.2% 1,816 6.2% 1,533 1,052

2007 29,207 44.3% 2,845 9.7% 2,710 9.3% 2,425 1,542

2006 20,247 1.0% 1,160 5.7% 1,424 7.0% 1,439 948

2005 20,051 2.5% 1,048 5.2% 2,658 13.3% 2,585 2,167

From the balance sheet SEK M Operating capital Return on operating capital Net debt (– = net cash) Shareholders’ equity and minority interests Total assets Net debt1)/shareholders’ equity, ratio

2010 14,784 9.8% 7,207 7,577 24,062 0.95

2009 15,632 1.3% 8,497 7,135 25,129 1.19

2008 16,852 13.1% 8,690 8,162 27,078 1.06

2007 13,535 23.1% 6,691 6,844 22,056 0.98

2006 3,818 22.3% –1,680 5,498 13,882 0.14

2005 4,484 40.7% –795 5,279 13,794 0.14

2010 496

2009 162

2008 1,463

2007 922

2006 400

2005 803

907 1,403 1,290

310 472 193

–2,860 –1,397 –1,999

–8,900 –7,978 –8,371

999 1,399 885

3,077 3,880 3,571

2005 and 2006 pro forma incl. 50 percent of Nordic Broadcasting Oy’s net debt.

From change in net debt SEK M Cash flow after operating investments Net acquisitions and divestments of operations, shares and participations Cash flow after acquisitions and divestments Change in net debt (– = increased debt)

From business area financial reports SEK M Net sales Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Total

2010

2009

2008

2007

2006

2005

6,265 5,658 9,978 3,828 1,758 3 405 –314 30,578

6,710 5,671 9,524 4,203 1,866 3,196 –303 30,867

5,917 6,202 7,703 3,969 2,495 3,678 –367 29,597

6,314 6,031 6,979 4,019 2,525 3,787 –448 29,207

5,489 3,971 1,453 3,595 2,187 3,627 –75 20,247

5,238 3,641 1,377 3,567 1,876 3,445 907 20,051

EBITA Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Total

720 155 1,260 280 210 39 –553 2,111

710 –13 991 255 62 –375 –445 1,185

568 466 1,374 251 194 –161 –278 2,414

678 699 1,159 252 337 38 –318 2,845

511 497 127 136 195 –81 –225 1,160

522 458 84 123 189 –153 –175 1,048

bonnier ab annual report

2010

Bonnier AB SE-113 90 Stockholm Sweden +46 8 736 40 00 bonnier.com