Growth opportunities

1
Growth opportunities from paper to electronic
media Kjell Aamot CEO

• Enskilda Securities Telecom, Media and Technology
  Seminar,
• Stockholm 14 September 2005

2
Strong Position in Old and New Economy

Strong Brands Content Know-how Marketing
Capacity Strong Cash Flow Execution Skills
Online Platforms

Off-line Positions
New Business Opportunities
Newspapers TV-production Publishing Film Rights
Internet (www) Mobile Internet Broadband
Build on core activities for continuous
development
3
Strategy

• Previous announced strategy to be continued
  financials and market position enables increased
  focus on growth
• Growth through both acquisitions and organic
  growth
• The Groups strong position and competitive
  advantages as a basis
• Acquisitions complementing and strengthening
  already existing positions
• New media and free newspaper engagements
• Financial targets unchanged

4
Financial targets over a business cycle
EBITA-margin 12
EBITDA-margin 16
Return on equity 22
Return on assets 15
Long term target for organic profitable growth 7
Equity ratio 35 (min. 25)
Net interest bearing debt/EBITDA 3
Minimum net cashflow from operations after maintenance capex (before dividend) NOK 400 million
5
Strategic repositioning
Electronic media
2004
Newspapers
1995
Norway Scandinavia Europe
Geographic focus area
6
Four fundamental trends which influence the media
industry
Loss of younger readers and migration from paper
to online
Classifieds from paper to the net
The mobile phone as a new media channel
Online search and directories increasingly
important categories
Schibsteds strategic response
7
Classifieds migrate to the net regional
newspaper business model is changing
Revenues from classified advertising, NOK million
CAGR -13
CAGR 45
2001
2002
2003
2004
2000
2001
2002
2003
2004
2000
8
Migration of classified advertising Recruitment
Number of ads, 12-month rolling average
9
Financials 2000 Q2 2005
NOK million
44
40
33
24
-10
-42

As of 30 June 2005
10
Readership on- and offline
Daily readership, thousands
1,754
1,696
1,655
1,571
1,522
1,481
1,403
1,392
1,391
96/97
97/98
98/99
99/00
00/01
01/02
03/04
2004
02/03
Source Gallup 96/97 represents Forbruker
Media 02/97
11
Operating profit (loss) Online newspapers
12
Operations overview
Online newspaper and development of new content
services
Online classified portal for consumers
Online classified portal for second hand car
dealers
Online number information service, direct
marketing and number information
13

• New services taking off
• Aftonbladet TV had 130,000 daily viewers on
  average on the weekdays after only 2 months of
  operation
• Number of paying subscribers on Aftonbladet Plus
  has increased from 4,000 to 23,000 in four months
• Viktklubben has sold more than 160,000
  subscriptions in Sweden so far
• Ad sales on Hitta.se started 15 August

14
Internet traffic on media sites
Unique visits, January 2005
58,269,624
53,975,864
2,855,269
4,111,222
4,986,758
5,545,962
5,571,035
12,046,111
18,859,507
Source Red Measure, January 2004
15
Operating profit (loss) Online activities
Includes FINN, Byt Bil, Blocket and Retriever in
addition to the groups online newspapers. The
results are included in the newspaper business
area.
16
Online activities share of Schibsteds operating
profit (EBITA1))
Percent
2002
2003
2004
2005

1. EBITA excluding associated companies

17
A 20 Minutes edition goes through three phases
Distribution audience Revenues
Phase 1 Optimize circulation
Phase 2 Readership growth
Phase 3 Revenue growth
Time
18
Circulation development
2000
2001
2002
2003
2004
2005
Luzern
St. Gallen Nantes
Cordoba Bilbao Valladolid Vigo Las Coruna
Strasbourg
Lille Lyon Marseille
Madrid Barcelone
Bern Basle
Paris
Sevilla
Zaragoza
Valence Alicante
Zurich
Toulouse Bordeaux
19
Latest development

• Stable positive development
• Break-even for the total operations in Q2
• Circulation increase and more cities lead to cost
  increase from Q2 last year
• Continued strong growth in both markets
• Spain 16
• France 49
• Operating profit for the Paris edition in Q2
• Competitive situation in Spain lead to launch in
  new cities
• Considering new countries

20
France 2 overall, but 1 in target group
Readership, May 2005, thousands
Readersship in target group 15 to 34 year olds
Overall readersship
21
Q2 highlights

• Successful integration continued growth
• EBITDA excl. restructuring costs of SEK 11.1
  million
• Strong product sales
• 2.2 million ringtones
• 1.1 million pictures/movie clips
• 680,000 java games
• Annual synergies from merger between Aspiro and
  Schibsted Mobile of SEK 9 million full effect
  from Q4

22
Online search

• Search expected to account for a significant part
  of total online ad spend
• Building of improved local indices to improve
  search results for the Scandinavian markets
• Investments in the Swedish directories market
  (Hitta.se) and the building of a Norwegian search
  service of NOK 50 million this year
• Norwegian organization built from scratch
  currently 25 FTEs
• Launch of Norwegian search service in November

23
Online advertising forecasts search is expected
to be important
Online advertising in the US, USD billion
Source Jupiter Research
24
Costs in Q2 relating to new growth initiatives
NOK million
New online projects in Aftenposten and FINN
Online search in Sweden hitta.se
New projects based on 20 Min and Blocket
Total costs in Q2 relating to new growth
initiatives
Online search in Norway
Other projects
25
Outlook (1/2)

• The group is well positioned for further growth
  new strategic initiatives are being evaluated
  continuously
• Continued strong growth for the online operations
• Continued growth expected in the recruitment
  market for Aftenposten total classified
  development highly dependent on real estate
  market
• Product development and increased cost focus in VG

26
Outlook (2/2)

• Break-even for the year as a whole including new
  initiatives possible for Svenska Dagbladet
• Good order situation for H2 in Metronome Film
  Television
• Revenue decline in Sandrew Metronome following
  the divestment of the Swedish cinemas and changes
  in the distribution agreement with Warner Home
  Video
• Positive circulation development for Aftonbladet
  gap to Expressen in July of 90 700

27
Sometimes following a gut feeling makes sense
2001
September 2005
Repositioned with significant upside
Restructuring challenge
Turnaround and repositioning successful
Huge losses/high risk
Huge losses/high risk
Concept proven viable
True believers are awarded
Online activities
The burst of the bubble
Operating profit (loss) from these activities
NOK (600) million
NOK 300 million1)
1) Last Twelve Months
28
As we said in Q4 1999