Stock Exchange Release 12/4/2012 11:15
On 5 March 2012, Sanoma Corporation announced that it had signed an agreement to
sell its kiosk operations in Finland, Lithuania and Estonia as well as its press
distribution operations in Estonia and Lithuania to the Norwegian Reitan
Servicehandel AS. According to International Financial Reporting Standards
(IFRS) any material divestment that represents a separate major line of business
shall be classified as discontinued operation. Hence, Sanoma has to classify
these operations to be divested as discontinued operations for the 2012
reporting. The discontinued operations are eliminated in the Consolidated Income
Statement and only the result for the period of these discontinued operations
are presented as a separate item after the result for continuing operations.
Accordingly, the Consolidated Income Statement for 2011 has been restated.
The tables with the restated Consolidated Income Statement, Statement of
Comprehensive Income, Income Statement by quarter, segment information, net
sales by business unit, operating profit by segment and operating profit
excluding non-recurring items by segment for 2011 can also be found on Sanoma's
website at www.sanoma.com/archive/files.
Group's outlook for 2012 unchanged
In 2012, Sanoma expects its net sales to grow slightly, mostly due to the
acquired SBS operations in the Netherlands and Belgium. Operating profit margin,
excluding non-recurring items, is estimated to be around 10% of net sales.
Earnings per share excluding non-recurring items are estimated to grow.
Sanoma's net sales and result are affected by the underlying environment,
particularly by the development of advertising markets in the Group's countries
of operation. The 2012 outlook is based on the assumption that the advertising
markets in the Group's main operating countries will vary from stable to
slightly decreasing, as the economic uncertainty continues.
The restated 2011 figures in the tables are unaudited.
CONSOLIDATED INCOME STATEMENT
EUR million
1-3/ 1-6/ 1-9/ 1-12/
CONTINUING OPERATIONS 2011 2011 2011 2011
NET SALES 530.2 1,122.8 1,750.2 2,378.1
Other operating income 7.0 77.0 87.4 116.5
Materials and services 205.5 422.8 651.2 858.2
Employee benefit expenses 148.1 300.2 442.8 611.7
Other operating expenses 118.7 255.2 394.2 541.3
Share of results in associated companies -0.1 -1.2 -1.2
Depreciation, amortisation and impairment losses 37.7 77.5 221.4 309.5
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OPERATING PROFIT 27.2 143.9 126.7 172.6
Share of results in associated companies 1.9 1.8 -1.5 -3.7
Financial income 2.3 3.6 4.6 13.9
Financial expenses 4.7 11.3 24.3 46.6
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RESULT BEFORE TAXES 26.7 138.0 105.5 136.3
Income taxes -8.3 -26.7 -48.0 -57.7
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RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS 18.4 111.3 57.4 78.6
DISCONTINED OPERATIONS
Result for the period from discontinued 0.1 4.7 4.2 7.4
operations
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RESULT FOR THE PERIOD 18.5 116.0 61.6 86.0
Result from continuing operations
attributable to:
Equity holders of the Parent Company 18.4 111.4 62.2 77.0
Non-controlling interests 0.0 -0.1 -4.7 1.5
Result attributable to:
Equity holders of the Parent Company 18.5 116.1 66.3 84.5
Non-controlling interests 0.0 -0.1 -4.7 1.5
Equity per share for result attributable
to equity holders of the Parent company:
Earnings per share, EUR, continuing operations 0.11 0.68 0.38 0.47
Diluted earnings per share, EUR, continuing 0.11 0.68 0.38 0.47
operation
Earnings per share, EUR, discontinued operations 0.00 0.03 0.03 0.05
Diluted earnings per share, EUR, discontinued 0.00 0.03 0.03 0.05
operations
Earnings per share, EUR 0.11 0.71 0.41 0.52
Diluted earnings per share, EUR 0.11 0.71 0.41 0.52
STATEMENT OF COMPREHENSIVE INCOME
EUR million 1-3/ 1-6/ 1-9/ 1-12/
2011 2011 2011 2011
Result for the period 18.5 116.0 61.6 86.0
Other comprehensive income:
Change in translation differences 6.0 6.5 -23.4 -25.6
Cash flow hedges 1.8 0.8 -6.9 -11.7
Income tax related to cash flow hedges -0.5 -0.2 1.8 2.9
Other comprehensive income for the period, net 7.3 7.1 -28.5 -34.4
of tax
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TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 25.8 123.1 33.1 51.6
Total comprehensive income attributable to:
Equity holders of the Parent Company 25.9 123.2 37.8 50.1
Non-controlling interests 0.0 -0.1 -4.7 1.5
INCOME STATEMENT BY QUARTER
EUR million
1-3/ 4-6/ 7-9/ 10-12/
CONTINUING OPERATIONS 2011 2011 2011 2011
NET SALES 530.2 592.6 627.4 627.9
Other operating income 7.0 70.0 10.4 29.1
Materials and services 205.5 217.3 228.4 207.0
Employee benefit expenses 148.1 152.1 142.6 168.8
Other operating expenses 118.7 136.6 139.0 147.1
Share of results in associated companies -0.1 -1.1
Depreciation, amortisation and impairment losses 37.7 39.8 143.9 88.1
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OPERATING PROFIT 27.2 116.7 -17.2 46.0
Share of results in associated companies 1.9 -0.1 -3.2 -2.2
Financial income 2.3 1.4 1.0 9.3
Financial expenses 4.7 6.6 13.1 22.2
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RESULT BEFORE TAXES 26.7 111.3 -32.5 30.8
Income taxes -8.3 -18.4 -21.3 -9.7
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RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS 18.4 92.9 -53.8 21.1
DISCONTINUED OPERATIONS
Result for the period from discontinued operations 0.1 4.6 -0.5 3.3
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RESULT FOR THE PERIOD 18.5 97.5 -54.4 24.4
Result from continuing operations
attributable to:
Equity holders of the Parent Company 18.4 92.9 -49.2 14.9
Non-controlling interests 0.0 -0.1 -4.6 6.2
Result attributable to:
Equity holders of the Parent Company 18.5 97.5 -49.7 18.1
Non-controlling interests 0.0 -0.1 -4.6 6.2
Equity per share for result attributable
to equity holders of the Parent company:
Earnings per share, EUR, continuing operations 0.11 0.57 -0.30 0.09
Diluted earnings per share, EUR, continuing operation 0.11 0.57 -0.30 0.09
Earnings per share, EUR, discontinued operations 0.00 0.03 0.00 0.02
Diluted earnings per share, EUR, discontinued 0.00 0.03 0.00 0.02
operations
Earnings per share, EUR 0.11 0.60 -0.31 0.11
Diluted earnings per share, EUR 0.11 0.60 -0.31 0.11
SEGMENT INFORMATION
The continuing operations of the Group include four reportable segments: Media,
News, Learning and Trade. The segmentation is based on business model and
product differences. Media, operating in 12 countries, is responsible for
magazines and TV operations. Sanoma News is responsible for newspapers in
Finland. Both segments also have a great variety of online and mobile services.
Learning's business is mainly B2B business. In 2012, Trade segment includes the
Trade services in Finland, the bookstore operations in Estonia, and the real
estate and administration operations of the segment. The figures of Trade
segment in 2011 include also the operations that were divested during 2011. In
addition to the Group eliminations column unallocated/eliminations includes
Sanoma Corporation and real estate companies as well as items not allocated to
segments.
Segment assets do not include cash and cash equivalents, interest-bearing
receivables and tax receivables. Transactions between segments are based on
market prices.
Sanoma segments 1.1-31.3.2011
Unallo-
cated/
Lear- elimi- Continuing
EUR million Media News ning Trade nations operations
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External net sales 290.1 107.7 57.7 74.7 -0.2 530.0
Internal net sales 1.0 0.6 3.0 7.1 -11.5 0.2
NET SALES, TOTAL 291.1 108.4 60.7 81.8 -11.7 530.2
OPERATING PROFIT 22.7 12.9 -5.2 3.3 -6.5 27.2
Share of results in
associated companies 1.7 0.0 0.0 0.2 1.9
Financial income 2.3 2.3
Financial expenses 4.7 4.7
RESULT BEFORE TAXES 26.7
SEGMENT ASSETS 1,808.1 320.8 569.8 258.9 40.3 2,997.9
Sanoma segments 1.1-30.6.2011
Unallo-
cated/
Lear- elimi- Continuing
EUR million Media News ning Trade nations operations
------------------------------------------------------------------
External net sales 612.8 219.5 163.8 126.2 -0.1 1,122.3
Internal net sales 2.0 1.1 5.4 14.7 -22.7 0.5
NET SALES, TOTAL 614.8 220.6 169.2 140.9 -22.7 1,122.8
OPERATING PROFIT 69.7 22.8 22.1 43.1 -13.8 143.9
Share of results in
associated companies 2.6 0.5 0.0 -1.3 1.8
Financial income 3.6 3.6
Financial expenses 11.3 11.3
RESULT BEFORE TAXES 138.0
SEGMENT ASSETS 1,830.4 318.7 596.9 153.0 71.1 2,970.1
Sanoma segments 1.1-30.9.2011
Unallo-
cated/
Lear- elimi- Continuing
EUR million Media News ning Trade nations operations
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External net sales 967.3 322.6 280.6 179.2 -0.2 1,749.6
Internal net sales 2.9 1.2 9.8 22.7 -36.0 0.6
NET SALES, TOTAL 970.2 323.8 290.5 201.9 -36.2 1,750.2
OPERATING PROFIT 38.8 35.3 39.4 35.0 -21.8 126.7
Share of results in
associated companies -1.0 0.7 -0.1 -1.1 -1.5
Financial income 4.6 4.6
Financial expenses 24.3 24.3
RESULT BEFORE TAXES 105.5
SEGMENT ASSETS 3,048.5 319.8 540.3 84.7 47.8 4,041.2
Sanoma segments 1.1-31.12.2011
Unallo-
cated/
Lear- elimi- Continuing
EUR million Media News ning Trade nations operations
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External net sales 1,412.1 434.1 331.9 198.4 0.3 2,376.8
Internal net sales 3.7 1.7 11.2 30.4 -45.7 1.2
NET SALES, TOTAL 1,415.8 435.8 343.1 228.7 -45.4 2,378.1
OPERATING PROFIT 92.0 40.2 16.6 38.9 -15.1 172.6
Share of results in
associated companies -2.5 0.6 0.1 -1.9 -3.7
Financial income 13.9 13.9
Financial expenses 46.6 46.6
RESULT BEFORE TAXES 136.3
SEGMENT ASSETS 3,048.7 320.7 549.0 81.1 47.2 4,046.8
NET SALES BY BUSINESS UNIT
EUR million 1-3/ 4-6/ 7-9/ 10-12/ 1-12/
2011 2011 2011 2011 2011
MEDIA
The Netherlands 105.3 130.6 174.0 232.2 642.0
Finland 74.2 79.4 70.0 86.2 309.7
Russia & CEE 51.4 54.3 50.8 56.7 213.1
Belgium 50.1 48.7 48.4 61.9 209.1
Other businesses and eliminations 10.2 10.7 12.3 8.6 41.8
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TOTAL 291.1 323.7 355.5 445.6 1,415.8
NEWS
Helsingin Sanomat 61.2 61.2 55.3 60.8 238.5
Ilta-Sanomat 19.1 22.2 21.6 21.6 84.4
Other publishing 23.7 25.0 22.9 25.4 97.0
Other businesses and eliminations 4.4 3.9 3.4 4.2 15.9
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TOTAL 108.4 112.2 103.2 112.0 435.8
LEARNING
Learning 34.3 87.4 100.2 34.7 256.6
Language services 8.7 8.1 7.2 8.4 32.4
Literature and other businesses 20.1 15.1 13.9 10.4 59.5
Eliminations -2.4 -2.1 -0.1 -0.8 -5.4
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TOTAL 60.7 108.6 121.2 52.7 343.1
TRADE
Kiosk operations 6.7 6.9 7.3 0.0 20.9
Trade services 28.8 27.3 24.4 23.2 103.6
Bookstores 24.8 18.8 29.7 3.7 77.0
Movie operations 21.9 6.5 0.0 0.0 28.4
Eliminations -0.3 -0.5 -0.4 0.0 -1.2
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TOTAL 81.8 59.1 61.0 26.9 228.7
Other companies and eliminations -11.7 -11.0 -13.5 -9.3 -45.4
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CONTINUING OPERATIONS 530.2 592.6 627.4 627.9 2,378.1
OPERATING PROFIT BY SEGMENT
EUR million 1-3/ 4-6/ 7-9/ 10-12/ 1-12/
2011 2011 2011 2011 2011
Media 22.7 47.0 -31.0 53.2 92.0
News 12.9 9.9 12.5 4.9 40.2
Learning -5.2 27.3 17.3 -22.7 16.6
Trade 3.3 39.8 -8.1 3.9 38.9
Other companies and eliminations -6.5 -7.4 -7.9 6.7 -15.1
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CONTINUING OPERATIONS 27.2 116.7 -17.2 46.0 172.6
OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS BY SEGMENT
EUR million 1-3/ 4-6/ 7-9/ 10-12/ 1-12/
2011 2011 2011 2011 2011
Media 22.7 37.9 25.8 64.6 151.1
News 12.9 9.9 12.5 14.1 49.4
Learning -6.1 29.0 42.4 -19.7 45.5
Trade 3.3 -2.9 4.8 -1.4 3.8
Other companies and eliminations -6.5 -8.4 -7.9 -2.9 -25.7
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CONTINUING OPERATIONS 26.3 65.6 77.6 54.7 224.1
Sanoma Corporation
Kim Ignatius
Chief Financial Officer
Additional information: Sanoma's Investor Relations, Martti Yrjö-Koskinen tel.
+358 105 19 5064 or ir@sanoma.com
Sanoma.com
Sanoma inspires, informs and connects. As a diversified media group, we bring
information, experiences, education and entertainment to millions of people
every day. We make sure that quality content and interesting products and
services are easily available and meet the demands of our readers, viewers and
listeners. We offer a challenging and interesting working environment for nearly
15,000 people in over 20 countries. In 2011, the Group's net sales totalled EUR
2.7 billion.
[HUG#1601791]
Kiosk operations in Finland, Lithuania and Estonia, and press distribution operations in Estonia and Lithuania to be classified as discontinued operations in 2012 - Group's outlook for 2012 unchanged
| Source: Sanoma Oyj