Metro International 4th Quarter 2011 results

Q4

LUXEMBOURG, 2 FEBRUARY 2012 – METRO INTERNATIONAL S.A. (“METRO” OR “THE GROUP") (MTROA, MTROB), TODAY ANNOUNCED ITS FINANCIAL RESULTS FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED 31 DECEMBER 2011.

INFORMATION WAS SUBMITTED FOR PUBLICATION ON 2 FEBRUARY 2012 AT 8:00 CET.

“ANOTHER GOOD YEAR” FINANCIAL SUMMARY €'000 Net revenue EBIT Net profit/(loss)

Q4 2011 58,038 14,642 11,398

Q4 2010 55,529 7,516 5,670

FY 2011 196,879 19,375 4,709

FY 2010 175,145 11,712 2,880

The figures relate to continuing operations (excluding France, Hungary and English Canada), refer Note 13

Q4 HIGHLIGHTS  EBIT of €14.6 million (€7.5 million) includes a one-off gain of €7.0 million (€0.3 million) related to a revaluation of the investment in Metro English Canada. Adjusted for these one-off items, EBIT would have been €7.6 million (€7.2 million)  Net revenue increased by 5 percent to €58.0 million (€55.5 million)  Increase in stake in St Petersburg, Russia from 58.5 percent to 95 percent FULL YEAR HIGHLIGHTS  EBIT of €19.4 million (€11.7 million) includes a net one-off gain of €4.2 million (€3.1 million).

Adjusted for these items, EBIT would have been €15.2 million (€8.6 million)  Net revenue increased by 12 percent to €196.9 million (€175.1 million)  Strong sales growth in Chile, Mexico and Russia  Sale of operations in English Canada and France  Three new operations launched in Latin America

“ANOTHER GOOD YEAR”

2011 has been an exciting year for Metro and we are well on track to reach the target announced back in May 2008; that Metro on Group-level will be double-digit margin in 2012.

We have expanded our reach, growing both offline and online. Among the highlights: We launched in three more Latin American countries, added nine new editions and approximately 1 million readers; our global print readership currently stands at 17.6 million. Online growth has continued as well, and in December this year, we had 7.7 million unique users across our various web properties and constantly growing.

We continue to build on our expansion strategy in emerging markets. To capitalize on the growing advertising market in Latin America we launched in Colombia, Guatemala and Peru. Using funds from the divestment of English Canada, we acquired further stake in Metro St Petersburg - an operation that has the best EBIT margin in the Group, 34 percent.

I am satisfied with the results for the full year 2011.

The latter half of this year has been impacted by the global economic crisis, but in spite of the impact our full year results are solid. Sweden, Denmark, Russia and Mexico had improvement in results based on better pricing. We are closely monitoring Holland as that market is experiencing a decline in ad spend on newspapers. In Hong Kong, market conditions are tough with the increased competition but we have performed relatively well. We have also been able to reduce net costs at headquarter to €12.5 million (excluding the Spanish lawsuit provision). This is better than the set target of €14 million net HQ costs.

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PRODUCT DEVELOPMENT In May 2011, we invited pop superstar Lady Gaga to serve as our Global Guest Editor for a day. The event and the surrounding coverage reached over 500 million people, and increased revenue and visibility in all markets. To further build on this initiative's success, we will have one of the fashion world's most legendary icons, Karl Lagerfeld, as our Global Guest Editor on 7 February 2012.

These partnerships exemplify the appeal that the world’s largest newspaper has in the eyes of celebrities and influential leaders. In line with our commitment to quality and innovative content, we have partnered with Scoopshot, a mobile crowd sourcing news photo service, to further engage our readers and provide them with an opportunity to sell their photos.

CURRENT ECONOMIC ENVIRONMENT Although revenues have increased in 2011, the unrest in the world economy may have an impact on the performance of our most important advertising markets. To ensure our results keep improving, we will continue to strengthen our editorial products to attract advertisers and readers, and continue a very tight cost control.

Our financial targets for 2012 are clear. We need to further improve our results to achieve the double digit group margin target. Taking into account the cumulative effect of the improvements we have made over the last few years, I am reasonably confident that we will be able to deliver.

Per Mikael Jensen, President and CEO

MARKET REVIEW THE ADVERTISING MARKET Despite the current economic turmoil in Europe, the global ad expenditure is expected to be up by 3.5 percent year-on-year in nominal terms for 2011 according to the latest ZenithOptimedia forecast (December 2011). Thanks to the extra stimuli of the summer Olympics, the European Football Championship and elections in a number of countries, global ad expenditure is expected to increase by 4.7 percent in 2012. Further worsening of the debt crisis in Europe would clearly depress the advertising spend.

Newspapers advertising expenditure is expected to decline by 1.1 percent in 2012 in Western Europe and to increase by 3.2 percent in emerging and developing markets.

SEASONALITY Q4 is the strongest quarter for Metro accounting for approximately 30 percent of sales. The upcoming Q1 nevertheless is a relatively weak quarter due to lower consumer spending after the Christmas period.

READERSHIP AND CIRCULATION Metro is published in over 100 major cities in 22 countries across Europe, Asia, North and South America. Metro’s global readership has increased by 5 percent year-on-year to approximately 17.6 million daily readers. Total readership for existing editions was stable year-on-year, while seven new editions in Latin America (Bogota in Colombia, Guadalajara in Mexico, Lima in Peru, Guatemala City in Guatemala, Porto Alegre, Belo Horizonte and Curitiba in Brazil) contributed with 4 percent yearon-year. Guadalajara and Porto Alegre were launched during the quarter and estimates are now included in the figures.

On a country level, readership was up in eight countries year-on-year. In Brazil, Metro consolidated

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its position as the largest newspaper nationwide based on circulation, thanks to the launch of its eighth edition in Porto Alegre in October. Readership is estimated to be up by 28 percent year-on-year.

Metro Russia, the most read newspaper in Moscow and St Petersburg increased its daily readership by 16 percent year-on-year to 1.7 million readers.

In Sweden, Metro is still by far the most read newspaper in the country and now the most read newspaper in Stockholm. While national readership has declined, the distribution focus on larger metropolitan areas is paying off with Stockholm, Gothenburg and MalmĂś editions increasing readers by 12 percent, 18 percent and 2 percent respectively.

Daily Readership per country ('000s) ('000s) Q4'11 Q4'10 France 2,401 2,461 Netherlands 1,684 1,727 Russia 1,675 1,446 Italy 1,609 1,549 Sweden 1,493 1,549 Canada 1,398 1,364 USA 1,113 1,209 Brazil 755 590 Hong Kong 725 733 Korea 721 713 Denmark 682 622 Hungary 624 518 Mexico 448 380 Chile 366 386 Portugal 352 426 Czech rep.

343 348 Greece 300 318 Finland 239 302 Colombia 210 Guatemala 145 Peru 143 Ecuador 141 141 TOTAL 17,566 16,782

% -2 -2 16 4 -4 3 -8 28 -1 1 10 21 18 -5 -17 -1 -6 -21

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Source: Latest published National Readership Surveys (2009-11) except new editions in Latin America (estimates).

FINANCIAL REVIEW Net revenue €'000 Net revenue Colombia Mexico SubTV Greece Net revenue (like-for-like)

Q4 2011 58,038 (488) 57,550

Q4 2010 55,529 55,529

FY 2011 196,879 (488) (14,610) (3,255) 178,526

FY 2010 175,145 (4,381) (974) (742) 169,048

EBIT €'000 EBIT Colombia Mexico SubTV Greece Sale, impairment and revaluation of shares Provision for legal cases EBIT (like-for-like)

Q4 2011 14,642 901 (6,960) 8,583

Q4 2010 7,516 (335) 7,181

FY 2011 19,375 901 (3,410) (992) (6,960) 2,800 11,714

FY 2010 11,712 (1,004) (246) 641 (3,097) 8,007

Like-for-like comparison above refers to Net revenue and EBIT for continuing operations adjusted for closed, divested, and acquired operations and one-off items.

FINANCIAL PERFORMANCE Net revenue like-for-like increased by 4 percent for Q4 and by 6 percent for the full year. In local currencies, net revenue like-for-like increased by 3 percent for Q4 and by 4 percent for the full year.

EBIT like-for-like increased by €3.7 million for the full year.

CASH FLOW Net cash (excluding debenture loans) has increased from €17.7 million as of 1 January 2011 to €42.1 million as of 31 December 2011.

Operating activities used €3.4 million (contributed €6.3 million) after interest and taxes. The change year-on-year is mainly due to the Swedish advertising tax payment of €11.2 million.

acquiring party on the sale of Metro France.

Dividends of €4.2 million has been paid to minorities.

BALANCE SHEET Total equity has increased by €21.2 million since 31 December 2010. The main reason for the change in equity is the gain on the sale of English Canada.

DIVIDENDS As part of the 2009 rights issue, the Group is restricted from paying dividends.

RISKS, UNCERTAINTIES AND SIGNIFICANT ESTIMATES No risks, uncertainties and significant estimates are believed to have appeared over and above those described in the 2010 Annual Report.

SUBSEQUENT EVENTS

In investing activities an amount of €35.0 million, net of capital gains tax, has been received on the sale of English Canada, France and Hungary.

Correspondingly, an amount of €8.0 million has been paid for acquiring shares in Metro St. Petersburg and SubTV. In financing activities, €3.0 million, borrowed for the acquisition of SubTV has been paid back. Also, a €3.0 million bank loan was taken over by the

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After balance sheet date, the shareholding in Metro Czech Republic has decreased from 40 percent to 7 percent as a result of non-participation in a local rights issue.

SHARES OUTSTANDING The total number of issued and outstanding shares as of 31 December 2011 was 528,009,231 (refer note 5).

OPERATIONAL REVIEW SUBSIDIARIES

SWEDEN €'000 Net revenue EBIT EBIT margin

Q4 2011 21,573 5,945 28%

Q4 2010 21,726 5,007 23%

FY 2011 71,879 13,899 19%

FY 2010 66,962 11,415 17%

Sales in local currency decreased by 3 percent in Q4 due to a slight reduction in the market ad spend. For the full year, sales in local currency increased by 2 percent.

Metro has decreased by 4 percent, the readership has increased in Stockholm, Gothenburg and Malmo.

The increased readership in the big cities has helped in improving the prices.

The Q4 EBIT for Sweden is €5.9 million, an increase of €0.9 million year-on-year. The full year EBIT was €13.9 million. The improvement in EBIT is mainly due to better page rates and lower print and paper costs due to lesser pagination compared to 2010.

Metrojobb.se has established itself as one of Sweden's biggest recruitment websites with a growing number of returning customers. 15% of total recruitment sales is from online products.

AllaStudier.se too has grown with double digit in terms of traffic and customers and several new contracts have been signed with key customers in the Education segment.

The distribution is focused on the three big cities in Sweden, thus although the national readership of

DENMARK €'000 Net revenue EBIT EBIT margin

Q4 2011 7,434 674 9%

Q4 2010 6,670 744 11%

Sales in local currency increased by 11 percent in Q4 and 3 percent for the full year.

Sales in the two newspapers, Metroxpress and 24Timer, are down by 8 percent for the quarter which reflects a similar decline in ad volumes in the Danish market. Almost all segments showed a decline in the quarter. Although the newspaper revenue has decreased, total revenue for Metro Denmark has increased due to the consolidation of the results of Soundvenue, a niche music magazine acquired during the year.

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FY 2011 27,064 1,914 7%

FY 2010 26,267 749 3%

The Q4 EBIT is flat at €0.7 million and the full year EBIT has improved by €1.1 million. The increased sales and cost savings on print and distribution have improved the results.

MetroXpress continues to maintain its position as the most read newspaper in Denmark.

THE NETHERLANDS €'000 Net revenue EBIT EBIT margin

Q4 2011 6,616 333 5%

Q4 2010 7,114 2,842 40%

The downturn in the economy has impacted the ad spend in newspapers with sales in local currency declining by 7 percent for Q4 and by 5 percent for the full year.

FY 2011 23,454 451 2%

FY 2010 24,797 3,661 15%

The Q4 EBIT was €0.3 million. The decline in EBIT year-on-year is due to the drop in sales and the investments made in new products. Also, in Q4 the local management team was changed and the redundancy cost too has impacted the EBIT.

We have launched new products both offline and online like Metro Mode and SaveMyDay to counter the sales decline in Green Metro.

RUSSIA (ST PETERSBURG) €'000 Net revenue EBIT EBIT margin

Q4 2011 3,298 1,473 45%

Q4 2010 3,125 980 31%

The print ad market in St Petersburg showed a negative growth in Q4 due to the uncertain global economic environment. In spite of this, sales in local currency increased by 7 percent in Q4.

FY 2011 11,213 3,811 34%

FY 2010 9,870 2,879 29%

The EBIT for Q4 is €1.5 million, an increase of €0.5 million year-on-year. The full year EBIT was €3.8 million.

The strong brand perception and better quality product has helped to increase the market share as well as realise better prices.

HONG KONG €'000 Net revenue EBIT EBIT margin

Q4 2011 6,492 585 9%

Q4 2010 6,045 933 15%

With the launch of two new free dailies in Hong Kong the total circulation of free dailies is more than 3 million copies now, double the number of 2010.

Even though the competition has increased and economic indicators are negative, sales in local currency increased by 7 percent in Q4 and by 9 percent for the full year.

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FY 2011 23,085 2,260 10%

FY 2010 22,371 3,746 17%

Hong Kong has an EBIT of €0.6 million for Q4 and €2.3 million for the full year. The new subway contract requires a higher circulation which has led to an increase in the print, paper and distribution costs. Also, the paper prices have been higher compared to 2010 further impacting EBIT.

MEXICO €'000 Net revenue EBIT EBIT margin

Q4 2011 4,699 1,385 29%

Q4 2010 3,447 839 24%

FY 2011 14,610 3,410 23%

FY 2010 11,849 2,249 19%

The numbers for 2010 are actual results for Mexico (consolidated from 1 September 2010)

Sales in local currency increased by 47 percent in Q4 and 27 percent for the full year. The launch of a new edition in Guadalajara and overall growth in the ad spend has helped increase sales. There has been growth in all segments with Telecom, Automotive and Retail the highest growing segments.

To diversify and grow the revenue stream two new Online products were launched in Q4. The daily deals offering SaveMyDay and a travel site.

EBIT for Q4 was €1.4 million, an increase of €0.6 million year-on-year. EBIT margin too has increased compared to 2010 due to better prices and cost efficiencies.

CHILE €'000 Net revenue EBIT EBIT margin

Q4 2011 3,989 570 14%

Q4 2010 4,296 677 16%

Sales in local currency decreased by 2 percent in Q4 due to a small decline in the ad volume, although for the full year sales increased by18 percent.

FY 2011 15,715 2,103 13%

FY 2010 13,500 1,766 13%

EBIT for Q4 was €0.6 million, a decrease of €0.1 million year-on-year. Chile, has launched the daily deals offering, SaveMyDay, which has increased costs.

COLOMBIA €'000 Net revenue EBIT

Q4 2011 488 (901)

Q4 2010 -

Metro Colombia was launched in September 2011.

FY 2011 488 (901)

FY 2010 -

In the short period since its launch, net revenue was €0.5 million. The paper has been able to attract top advertising brands in Retail, Telecom and Automotive.

SUBTV €'000 Net revenue EBIT EBIT margin

Q4 2011 933 335 36%

Q4 2010 974 246 25%

FY 2011 3,255 992 30%

FY 2010 3,210 992 31%

The numbers for 2010 are actual results for SubTV (consolidated from 1 October 2010)

SubTV in Chile has developed a successful television business exclusively delivering news, entertainment and information to commuters in Santiago through television screens in stations and subway trains.

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Sales in local currency in SubTV increased by 1 percent in Q4 and the EBIT was €0.3 million.

ASSOCIATED COMPANIES

FRENCH CANADA €'000 Net revenue EBIT EBIT margin

Q4 2011 3,996 438 11%

Q4 2010 4,337 653 15%

The Canadian economy is experiencing the adverse effects of the economic situation in USA and Europe.

Local currency sales in French Canada declined by 8 percent in Q4.

The Q4 EBIT was €0.4 million, a decline of €0.3 million year-on-year which is mainly attributed to the sales decline.

FY 2011 13,679 582 4%

FY 2010 14,534 1,528 11%

Readership has increased by 9 percent in Montreal and Metro has become the number one read newspaper on the island of Montreal.

Metro holds a financial interest of 50 percent in French Canada.

BRAZIL €'000 Net revenue

Q4 2011 8,750

Q4 2010 5,980

Sales in local currency increased by 51 percent in Q4 and by 54 percent for the full year. Sales growth was recorded in all editions with the Sao Paulo and Rio de Janeiro editions being the biggest contributors to the increased sales.

FY 2011 27,368

FY 2010 17,770

During Q4 a new edition was launched in Porto Alegre.

Metro now has eight editions in Brazil with a daily circulation of more than 400,000 copies making it the largest newspaper in Brazil, Monday to Friday.

Metro holds a financial interest of 30 percent in Brazil.

GUATEMALA €'000 Net revenue EBIT

Q4 2011 620 (82)

Q4 2010 -

The edition in Ciudad de Guatemala, capital city of Guatemala, was launched in February 2011.

Net revenue for 2011 was €1.7 million and the EBIT loss was €1.0 million.

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FY 2011 1,701 (956)

FY 2010 -

Metro holds a 25 percent financial interest in the venture.

HEADQUARTERS €'000 Revenue Shared Services Management & Administration Central Online Cost

Q4 2011 2,516 (2,142) (2,244) (818) (5,204)

Q4 2010 2,132 (2,980) (3,370) (931) (7,282)

Revenue at Headquarters consists of franchise fees from non-controlled operations and commission on global advertising campaigns.

Net headquarter costs for 2011 excluding the provision of €2.8 million for ongoing lawsuits against Metro in Spain were €12.5 million. This is better than the target

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FY 2011 6,117 (6,730) (11,618) (3,072) (21,420)

FY 2010 5,275 (8,743) (10,720) (3,176) (22,639)

of €14 million net costs at the start of 2011. Decrease in headcount and lower costs on the Latin American expansion are the main reasons for the decrease in HQ costs.

THE BOARD OF DIRECTORS’ STATEMENT The Board of Directors declare, to the best of our knowledge, that the condensed set of interim financial statements (refer to page 11-21) which has been prepared in accordance with IAS 34 “Interim financial reporting” as adopted by the European Union presents fairly the assets, liabilities, financial position and profit or loss of Metro International S.A., or undertakings included in the consolidation as a whole as required under Article 4 of the Transparency Law, and that the interim management report includes a fair review of the information required under Article 4 of the Transparency Law. A complete set of financial statements will be subject to the approval of the Board of Directors of Metro in March 2012 after the completion of the audit.

The Board of Directors Luxembourg, 2 February 2012 Metro International S.A. 2-4 Avenue Marie-Therese P.O. BOX 285 L-2132 Luxembourg Registration no: B73790

AUDIT STATEMENT This interim report has not been subject to review by the Group’s auditors

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INTERIM FINANCIAL STATEMENTS CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME Note

Q4 2011

Q4 2010

YTD 2011

YTD 2010

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56,749 1,289 58,038

54,279 1,250 55,529

191,605 5,274 196,879

170,134 5,011 175,145

(28,512) 29,527

(26,597) 28,932

(104,088) 92,791

(94,382) 80,763

(11,789) (10,029) 6,960 (26) 14,642

(10,744) (11,090) (640) 975 83 7,516

(40,071) (40,098) 6,960 (206) 19,375

(36,154) (37,166) (2,483) (1,523) 7,103 1,172 11,712

194 (3,297) (3,103)

37 (1,650) (1,613)

388 (10,837) (10,450)

112 (7,380) (7,268)

Profit/(loss) before incom e tax

11,540

5,903

8,926

4,444

Current tax expense Deferred tax expense Incom e tax

(1,159) 1,018 (142)

(886) 653 (233)

(2,748) (1,468) (4,217)

(2,218) 653 (1,564)

Net profit/(loss) from continuing operations

11,398

5,670

4,709

2,880

€'000 Continuing operations Net sales Other income Net revenue Cost of production Gross incom e Selling expenses Administrative expenses Loss on sale of shares in subsidiaries Impairment of goodw ill and shares in associated companies Revaluation of shares in associated companies Share of profit/(loss) in associated companies Operating profit/(loss) from continuing operations, EBIT Financial income Financial expense Net financial expense

Discontinued operations Net profit/(loss) from discontinued operations

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11 3

4

13

25,858

2,647

26,761

1,081

37,257

8,317

31,471

3,960

830 830

(920) (920)

(1,142) (1,142)

(806) (806)

Total com prehensive incom e/(expense) for the period

38,087

7,397

30,329

3,154

Net profit/(loss) attributable to: Equity holders of the parent company Non-controlling interest Net profit/(loss)

34,983 2,274 37,257

7,296 1,020 8,317

27,672 3,798 31,471

212 3,748 3,960

Total com prehensive incom e/(expense) attributable to: Equity holders of the parent company Non-controlling interest Total com prehensive incom e/(expense) for the period

35,480 2,607 38,087

5,246 2,151 7,397

26,611 3,717 30,329

(1,777) 4,931 3,154

Net profit/(loss)

Foreign currency translation differences Other com prehensive incom e

Earnings per share Basic earnings per share (€) Diluted earnings per share (€)

5 5

0.07 0.02

0.02 0.00

0.06 0.02

0.01 0.00

Earnings per share - Continuing operations Basic earnings per share (€) Diluted earnings per share (€)

5 5

0.02 0.01

0.01 0.00

0.01 0.00

0.01 0.00

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CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION â‚Ź'000 Trademarks and licenses Capitalised development costs Goodw ill Intangible assets

Note

Office and IT equipm ent Shares in associated companies Other investments Receivables from associated companies Long-term receivables Financial assets

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Deferred tax assets Total non-current assets Accounts receivable Other current receivables Prepaid expenses and accrued income Cash and cash equivalents Total current assets Assets held for sale

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Total assets Equity holders of the parent company Non-controlling interest Total equity Liability to non-controlling interests Subordinated debentures Long-term bank loans Non-current liabilities Short-term bank loans Accounts payable Ad tax Provision Other liabilities Accrued expenses and deferred income Current liabilities Liabilities held for sale Total equity and liabilities

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4

6

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31 Decem ber 2011 4,712 1,669 24,746 31,126

31 Decem ber 2010 5,269 2,635 27,741 35,644

4,174

4,692

1,538 9,750 1,010 12,298

2,351 277 7,503 2,549 12,680

1,773

4,318

49,371

57,334

34,506 11,911 5,952 48,659 101,028

46,327 14,910 5,680 29,389 96,306

2,438

-

152,836

153,640

31,517 6,373 37,890

13,997 2,751 16,748

6,217 52,705 58,922

6,397 44,252 1,367 52,016

306 12,906 16,111 24,895 54,219

3,941 21,292 8,735 23,482 27,427 84,876

1,805

-

152,836

153,640

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

â‚Ź'000 Balance at 1 January 2010 Total comprehensive income/(expense) Dividends to non-controlling interest Share based payment transactions Minority share of acquired equity Balance at 31 Decem ber 2010 Balance at 1 January 2011 Total comprehensive income/(expense) Share based payment transactions Dividends to non-controlling interest Non-controlling interest share of capital contribution from parent Non-controlling interest share in divested operations Non-controlling interest share in acquired operations Increased shareholding in Metro Mexico Increased shareholding in Metro St Petersburg Liability as a result of option contracts in Metro St Petersburg Balance at 31 Decem ber 2011

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Equity holders of the parent Note com pany 15,437 (1,777) 337 13,997

Non-controlling interest (1,690) 4,931 (1,340) 850 2,751

Total equity 13,747 3,154 (1,340) 337 850 16,748

13,997 26,611 346 (3,741) (568) (4,498) (630) 31,517

2,751 3,717 (4,204) 3,741 728 312 (602) (70) 6,373

16,748 30,329 346 (4,204) 728 312 (568) (5,100) (700) 37,890

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CONSOLIDATED STATEMENT OF CASH FLOWS Note

FY 2011

FY 2010

13

8,926 27,783

4,444 1,403

4,370 10,373 (27,998) (6,960) (462) 2,800 18,832

4,338 6,223 2,483 1,523 (7,103) (2,591) 565 11,285

Changes in w orking capital: Net w orking capital (increase)/decrease

(7,237)

(3,102)

Cash contributed/(used) by operations

11,595

8,183

98 (11,210) (3,899) (3,416)

(30) (1,818) 6,335

34,964 (7,992) 1,890 (1,097) (1,806) 25,959

3,970 (5,034) 2,770 (558) (1,165) (17)

(3,038) 3,012 306 778 (4,204) (3,147)

1,367 1,317 32 (1,340) 1,376

19,396 29,389 (126) 48,659

7,694 20,165 1,530 29,389

â‚Ź'000 Operating activities Profit/(loss) before income tax - continuing operations Profit/(loss) before income tax - discontinued operations Adjustm ents for: Depreciation and amortisation Financial items, net (Profit)/loss on sale of shares in subsidiaries/associates Impairment of goodw ill and shares in associated company Revaluation of shares Share of (profit)/loss in associated companies Dividends from associated companies Provision for legal cases Cash flow before change in w orking capital

Net interest received/(paid) Ad tax paid Income tax paid Net cash contributed/(used) by operations Investing activities Disposal of shares - net of tax and cash disposed of Investments in shares (Increase)/decrease in long-term receivables Investment in intangible assets Investments in office and IT equipment Net cash contributed/(used) in investing activities Financing activities Long term bank loan proceeds/(paid) Disposal of shares - short-term bank loans taken over Short term bank loan proceeds Capital contribution from minority partner Dividends paid to non-controlling interest Net cash contributed/(used) in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Currency effects on cash Cash and cash equivalents at end of the period

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6

10

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NOTES Note 1: Accounting policies and definitions The interim report has been prepared in accordance with IAS 34. The interim report is presented in accordance with the accounting principles used in the 2010 Annual Report.

Note 2: Related party transactions No significant related party transactions have occurred in 2011. Related parties are presented in note 30 of the 2010 Annual Report.

Note 3: Operating segments IFRS 8 requires presentation and disclosure of segment information based on the internal reports regularly reviewed by the Group’s executive management.

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The segment reporting is at a country level: Sweden, Denmark, the Netherlands, Russia, Hong Kong, Chile Mexico and Colombia. The exception is SubTV, Chile, which is a different business and therefore reviewed as a separate segment.

The previous operations Hungary, France and English Canada are presented as discontinued operations, refer note 13.

The segment “Other� includes the result from Headquarters and equity interests in associated companies. Headquarters also include revenues from franchise fees and income derived from global sales and logistics. Headquarters also includes costs for management and administration, shared operational services and central online.

Net revenue There are no inter-segmental sales and consequently the table below present’s external sales only.

Net revenue €'000 Sw eden

Q1 2011 17,351

Q2 2011 19,992

Q3 2011 12,964

Q4 2011 21,573

FY 2011 71,879

Denmark

6,661

6,835

6,134

7,434

27,064

The Netherlands

6,059

6,025

4,754

6,616

23,454

Russia

2,126

3,042

2,747

3,298

11,213

Hong Kong

4,980

5,690

5,923

6,492

23,085

Chile

3,746

4,029

3,951

3,989

15,715

Mexico

2,800

3,512

3,598

4,699

14,610

Sub TV

698

810

815

933

3,255

-

-

-

488

488

44,421

49,935

40,885

55,522

190,763

745

1,694

1,163

2,516

6,117

45,166

51,629

42,048

58,038

196,879

Q1 2010 14,630

Q2 2010 17,688

Q3 2010 12,918

Q4 2010 21,726

FY 2010 66,962

Denmark

6,634

7,447

5,516

6,670

26,267

The Netherlands

6,067

6,415

5,201

7,114

24,797

Greece

457

285

-

-

742

Russia

1,567

2,576

2,602

3,125

9,870

Hong Kong

4,750

5,613

5,963

6,045

22,371

Chile

Colombia Operating segm ents Other Continuing operations

Net revenue €'000 Sw eden

2,496

3,364

3,344

4,296

13,500

Mexico

-

-

934

3,447

4,381

Sub TV

-

-

-

974

974

36,601

43,388

36,478

53,397

169,864

Operating segm ents Other Continuing operations

16

836

1,426

886

2,132

5,280

37,437

44,814

37,364

55,529

175,145

Operating Profit/(Loss) Operating Profit/(Loss) â‚Ź'000 Sw eden

Q1 2011 2,313

Q2 2011 4,408

Denmark

518

550

The Netherlands

483

166

Russia

480

974

Hong Kong

291

Chile

532

Mexico Sub TV Colombia

Q3 2011 1,233

Q4 2011 5,945

FY 2011 13,899

172

674

1,914

(531)

333

451

885

1,473

3,811

730

655

585

2,260

578

423

570

2,103

472

755

798

1,385

3,410

137

262

258

335

992

-

-

-

(901)

(901)

5,225

8,423

3,892

10,401

27,941

(4,090)

(2,981)

(5,736)

(2,719)

(15,526)

-

-

-

6,960

6,960

1,135

5,442

(1,844)

14,642

19,375

Q1 2010 1,330

Q2 2010 3,323

Q3 2010 1,755

Q4 2010 5,007

FY 2010 11,415

(455)

735

(275)

744

749

202

867

(250)

2,842

3,661

Greece

(404)

(237)

-

-

(641)

Russia

292

804

803

980

2,879

Hong Kong

769

908

1,136

933

3,746

Chile

273

513

303

677

1,766

-

-

164

839

1,004

-

246

246

Operating segm ents Other Revaluation of shares in associate Continuing operations

Operating Profit/(Loss) â‚Ź'000 Sw eden Denmark The Netherlands

Mexico Sub TV Operating segm ents Other

2,007

6,913

3,636

12,269

24,825

(4,507)

(2,851)

(3,763)

(5,088)

(16,209)

Sale of shares in subsidiaries

-

(1,843)

-

(640)

(2,483)

Impairment of goodw ill and shares

-

-

(1,523)

-

(1,523)

Revaluation of shares in associate Continuing operations

-

-

6,128

975

7,103

(2,500)

2,219

4,478

7,516

11,712

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Note 4: Rights issue In 2009, the Group issued 1,319 million debentures and 1,319 million warrants. Through the rights issue, the Group received €48.5 million before transaction costs.

The debentures, which are denominated in Swedish krona, have an aggregate nominal amount of €73.7 million. No interest is paid to the holders of the debentures prior to maturity. The debentures are due for repayment on 30 December 2013. The warrants are exercisable between 28 October and 22 November 2013. If all warrants are exercised, the Group will receive €58.9 million. Thus, if all warrants are exercised, the Group will pay a net amount of €14.7 million in 2013 to settle the warrants and the debentures.

The debentures are recognised at amortised cost, which means that the difference between initial value and nominal value is amortised in the profit or loss as interest expense. €8.1 million (€6.5 million) out of the €10.8 million (€7.4 million) in financial expenses relates to interest on the debenture loans.

The warrants were recognised as the difference between the initial receipts from the rights issue after transaction costs and the fair value of the financial liability at the time of issue. Subsequently, the equity component is not re-measured.

The debentures give rise to foreign currency translation differences on translation from the parent company’s functional currency (Swedish krona) to the Group’s presentation currency (euro). These translation differences are recognised as part of other comprehensive income.

Note 5: Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing profit or loss attributable to the equity holders of the parent company by the weighted average number of shares outstanding during the year. There has been no change in the number of issued and outstanding shares during the year.

Diluted earnings per share For the calculation of diluted earnings per share, the weighted average number of shares is adjusted for effects of potential shares. However, dilution is calculated only for potential shares that reduce the profit per share or increase the loss per share.

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The number of shares is presented below:

Num ber of shares Number of outstanding shares, basic Number of shares, w eighted average Number of shares after dilution Number of shares after dilution, w eighted average

Decem ber 31 2011

Decem ber 31 2010

528,009,231

528,009,231

528,009,231

528,009,231

1,858,619,467

1,857,996,853

1,856,223,331

1,857,996,853

Dilution is mainly related to warrants issued in the 2009 rights issue:

Potential shares Warrants CEO shares Directors' shares LTIP 2010 LTIP 2011 Total

Decem ber 31 2011 1,319,531,478 1,851,961 3,639,063 5,587,733 1,330,610,236

Decem ber 31 2010 1,319,531,478 2,777,942 2,361,488 5,316,714 1,329,987,622

The Directors’ shares were settled in cash, as decided at the 2011 AGM. A new equity settled incentive program for management has been launched during the year.

Note 6: Swedish advertising case As reported in the 2007 Annual Report of Metro International, the Group contested the view of the Swedish Tax Authority regarding the advertising tax imposed on the Swedish operation. The case was finally appealed to the Swedish Supreme Administrative Court of Appeal in 2009. In March 2011, the Swedish Supreme Administrative Court of Appeal denied grant to appeal. As a result, the Group paid €11 million in April 2011 to the Swedish Tax Authorities. This amount has been provided for since 2007. The provision was released upon payment.

As part of the hold harmless clause in the sale agreement with Schibsted from 2008, the parent company of the Group has reimbursed the Swedish operation the full €11 million related to ad tax.

Note 7: Provision for legal proceedings in Spain Metro is defendant in two legal cases in Spain, one relating to an agreement with an ad sales agency and the other relating to a consultancy contract with a former managing director of Metro Spain. In September 2011, the court of first instance found against Metro for an amount of €2.8 million.

Following the decision by the court of first instance, Metro made a provision of €2.8 million (representing the full amount decided by the first instance) in the third quarter 2011.

not be issued. Consequently, the tax authorities will claim this amount from the customers.

Metro Sweden has received a claim for €0.3 million from the tax authorities which has been appealed.

The Group believes that the claim from the tax authorities is unreasonable and there is no direct connection between the printers and the customers VAT. The Group has sought legal advice and the directors believe that a provision is not required.

Metro has appealed the decision.

Note 8: Contingent liabilities Legal proceedings in Italy A lawsuit has been filed in Italy requesting that the Group be prohibited to use the trademark Metro for newspapers in Italy. If the lawsuit is successful, the Group must cease its use of the trademark Metro in Italy. The Group may also be liable for damages for infringement, currently amounting to approximately €0.3 million.

Note 9: Investment in St Petersburg The Group has increased its shareholding in Metro St Petersburg from 58.5 percent to 95 percent. The additional shares were acquired for €5.1 million.

The Group has an option to buy the remaining 5 percent of the shares. Similarly, the counterpart has an option to sell. The options have been treated as a liability of €0.7 million, reflecting the expected future outflow obligation.

Note 10: Divestments The Directors believe that a provision is not required.

Advertising for gambling in Denmark The editor in chief in the Danish operation has been charged with violation of the previous Danish Pools and Lotto Act, which prohibited advertising for gambling. The law has now been changed, but the charge is for the period 2004-2010 when advertising for gambling was prohibited.

The Group believes that the then Danish Pools and Lotto Act violates EU’s antimonopoly regulation. A ruling in the European Court of Justice is expected to be completed in 2-3 years.

The Group estimate the maximum exposure at €1.3 million plus interest.

The Directors believe that a provision is not required.

Print VAT in Sweden The Swedish Tax Authorities have retroactively changed the VAT rate on printing services from 2004 onwards to 6 percent from a previous level of 25 percent and the printers can claim a refund based on submission of reassessment forms. But for the period from 2004-2007 the legislation does not require the printers to issue credit notes to the customers and there is a risk that the credit notes will

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Divestment of Metro Hungary On 7 June 2011 Metro signed an agreement on the sale of its operation in Hungary (“Metro Hungary”) to Megapolis Media Inc. In Q2, 2011 a capital loss of €2.5 million was recognized on the sale:

Capital loss Sales price Net assets at the time of sale Capital loss

€'000 303 (2,775) (2,472)

The sale of Metro Hungary resulted in a positive cash flow of €0.2 million:

Effect on Group cash flow Sales price Cash at the time of sale Cash flow from sale

€'000 303 (141) 162

Upon sale, Metro Hungary has been classified as a discontinued operation, refer note 13.

Divestment of Metro France On 28 July 2011 Metro signed an agreement on the sale of its operation in France (“Metro France”) to Télévision Française 1 ("TF1"). In Q3, 2011 a capital gain of €4.8 million was recognized on the sale:

Capital gain Sales price Net assets at the time of sale Transaction costs Capital gain

€'000 3,209 1,723 (179) 4,753

Metro English Canada has been classified as a discontinued operation, refer note 13.

Note 11: Revaluation of investments The 10 percent shareholding in Metro English Canada still held by the Group has been revalued to €8.5 million, which resulted in a revaluation gain of €7.0 million.

The sale of Metro France resulted in a positive cash flow of €2.5 million:

The Group has an option to sell the remaining 10 percent interest in Metro English Canada for €8.5 million. Similarly, the counterpart has an option to buy the remaining 10 percent interest for €8.5 million.

Effect on Group cash flow Sales price Cash at the time of sale Cash flow from sale

Note 12: Assets held for sale

€'000 3,209 (689) 2,520

The Group incurred disposal costs of €0.2 million on the sale of Metro France. A €3.0 million bank loan was taken over by the acquiring party on the sale of Metro France.

Upon sale, Metro France has been classified as a discontinued operation, refer note 13.

Divestment of Metro English Canada On 14 October 2011 Metro signed an agreement for the sale of 40 percent of Metro English Canada to Torstar. Metro retains a 10 percent interest in Metro English Canada.

In Q4, 2011 a capital gain of €25.7 million was recognized on the sale: Capital gain

€'000

Sales price

36,834

Tax

(4,281)

Net assets at the time of sale

(6,555)

Transaction costs Capital gain

(282) 25,717

The sale of Metro English Canada resulted in a positive cash flow of €32.3 million: Effect on Group cash flow Sales price Tax Cash at the time of sale Cash flow from sale

€'000 36,834 (4,281) (268) 32,285

The Group incurred disposal costs of €0.3 million on the sale of Metro English Canada.

20

Metro French Canada The Group is negotiating a sale of its shareholding in Metro French Canada.

The Group’s non-current assets relating to Metro French Canada has been reclassified to assets held for sale as at 31 December 2011. The full €2.4 million in assets held for sale in the balance sheet relates to Metro French Canada. The Group does not have liabilities related to Metro French Canada.

Metro Czech Republic The Group is negotiating a sale of its shareholding in Metro Czech Republic.

The Group’s non-current liabilities relating to Metro Czech Republic has been reclassified to liabilities held for sale as at 31 December 2011. The full €1.8 million in liabilities held for sale relate to Metro Czech Republic. The Group does not have assets related to Metro Czech Republic.

Note 13: Discontinued operations Metro Hungary, Metro France and Metro English Canada have been divested during the year. The operations and cash flows can be clearly distinguished and represent major geographical areas of the Group’s operations. Therefore, Metro Hungary, Metro France and Metro English Canada have been presented as discontinued operations.

Discontinued operations Income statement Net revenue Operating expenses Share of profit in associated companies Operating profit/(loss), EBIT

Condensed statements of profit or loss and cash flow for discontinued operations are presented below:

Q4 2011

Q4 2010

YTD 2011

YTD 2010

540 (572) (31)

14,968 (13,451) 767 2,284

28,874 (29,834) 668 (291)

47,324 (48,385) 1,419 358

Gain on sale of shares Net financial items Profit before tax

25,717 455 26,141

455 2,739

27,998 77 27,783

1,045 1,403

Tax Net profit/(loss)

(282) 25,858

(91) 2,647

(1,022) 26,761

(322) 1,081

Net profit/(loss) attributable to: Equity holders of the parent company Non-controlling interest Net profit/(loss)

25,858 25,858

2,150 497 2,647

27,738 (977) 26,761

1,498 (417) 1,081

YTD 2011

YTD 2010

1,194 34,834 36,028

366 1,745 2,111

Discontinued operations Cash flow statement Cash flow from operating activities Cash flow from investing activities Net increase/(decrease) in cash

21

CONFERENCE CALL Metro International will host a conference call today at 10.00 A.M. CET which will be broadcast live on the internet and as a conference call. Participants can take part in the call either through the audiocast or the conference call.

To follow the internet audiocast: A live audiocast of the presentation will be available on www.metro.lu, on 2 February 2012 at 10.00 A.M. CET. To participate in the conference call, please dial in on the following numbers: Sweden Tel: +46 8 505 598 53 UK / International Tel: +44 20 304 324 36 US free phone number Tel: +1 866 458 40 87 Conference call participants can access the presentation slides on http://www.metro.lu/node/79 .

A re-play will be available on Metro’s website www.metro.lu approximately one hour after the event.

For further information please visit www.metro.lu or contact: Per Mikael Jensen, President and CEO Tel: +46 8 120 570 00 Anders Kronborg, CFO Tel: +44 79 125 40 800

DATE OF NEXT REPORT Metro’s financial results for Q1 ended 31 March 2012 will be published on 18 April 2012.

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