Sanoma's Interim Report 1 Jan-30 Sept 2009: Reshaping for the Future
(Thomson Reuters ONE) - Interim Report 6/11/2009 8:00- Sanoma Group's net sales totalled EUR 2,034.4 (2,231.4) million inthe first nine months, 8.8% less than in the comparable period. Netsales in the third quarter were EUR 701.1 (778.6) million.- Operating profit excluding non-recurring items was EUR 180.2(246.6) million. Non-recurring items totalledEUR -17.1 (18.5) million. The third quarter EBIT excludingnon-recurring items was EUR 84.5 (100.5) million.- Earnings per share were EUR 0.62 (1.10) in January-September. Thethird quarter EPS amounted to EUR 0.30 (0.37).- Sanoma's outlook for 2009 is unchanged, but divisional outlooks forEntertainment and Trade have been adjusted.KEY INDICATORS 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 701.1 778.6 -9.9 2,034.4 2,231.4 -8.8 3,030.1Operating profit 84.5 100.5 -15.9 180.2 246.6 -26.9 295.7excludingnon-recurring items % of net sales 12.0 12.9 8.9 11.1 9.8Operating profit 77.1 94.0 -18.0 163.1 265.2 -38.5 236.3Result for the 47.2 61.1 -22.7 98.5 180.7 -45.5 120.8periodCapital expenditure 61.2 77.6 -21.1 109.9 % of net sales 3.0 3.5 3.6Equity ratio, % 39.4 39.0 40.0Net gearing, % 90.3 75.9 78.5Number of employees at the end of the 16,998 18,693 -9.1 18,453period FTEAverage number of employees FTE 17,507 18,031 -2.9 18,168Earnings/share, EUR 0.30 0.37 -19.7 0.62 1.10 -44.2 0.72Cash flow from 0.70 0.74 -5.5 0.74 0.97 -23.0 1.56operations/share,EURHannu Syrjänen, President and CEO"Our focus this year has been on improving efficiency and I ampleased that we have cut our operating expenses by 6.7% so far. Newefficiency improvement initiatives were launched in the third quarterand efficiency will continue to be the focus of all our operations inthe fourth quarter and 2010 as well.As the operating environment continues to change, we are preparingourselves for the future and are ready to invest further indeveloping our operations: renewing our products and services,developing our concepts and creating new initiatives. At the sametime, we are reshaping our operations by closing down businesses,which are no longer meeting our set targets. These actions, togetherwith other restructuring expenses, are having a visible impact on ourresult for the second half of 2009.In parallel, we are putting a strong emphasis on our onlineoperations, one of Sanoma's focus areas. By using the experience ofexperts across our five divisions, we are continuously developing ourtransactional services, such as comparison and classified sites, aswell as gaming platforms and verticals. All these efforts are beingdriven by enhanced innovation as well as a clearly up-scaled mergerand acquisition ambition."Outlook for 2009In 2009, Sanoma's net sales are expected to decrease. It is estimatedthat the Group's operating profit excluding non-recurring items willclearly decline from the previous year. In the comparable year of2008, operating profit excluding non-recurring items was EUR 295.7million. The Group's interest expenses are expected to decreasemarkedly, and as a result, Sanoma's net result for 2009 is expectedto decrease less than its operating profit. The Group will stronglyincrease the efficiency of its operations in all markets.The outlook for Sanoma's net sales and operating profit in 2009 isaffected by the development of advertising and private consumption inthe Group's countries of operation. In 2009, advertising and privateconsumption are expected to decrease from 2008 levels in all ofSanoma's markets.Net salesIn January-September Sanoma's net sales were EUR 2,034.4 (2,231.4)million, 8.8% below the comparable period. Excluding the effect ofexchange rate changes, net sales would have been 7.0% lower than inthe comparable period. Adjusted for changes in the Group structure,January-September net sales decreased by 9.5%. Net sales were at thecomparable year's level in Sanoma Entertainment. Net sales were downin other divisions, with advertising sales in particular beingaffected by the general economic situation.Advertising sales decreased clearly and accounted for 21% (24%) ofthe Group's total net sales. Online advertising sales, however,remained stable with Sanoma Magazines Netherlands and SanomaEntertainment even reporting growth. The Group's subscription salesremained stable. Single copy sales across the Group fell somewhat,mostly in magazines in Russia and CEE countries. In geographicalterms, Finland accounted for 51% (49%) of net sales, with other EUcountries accounting for 46% (46%) and non-EU countries for 3% (5%).ResultSanoma's operating profit excluding non-recurring items was EUR 180.2(246.6) million in January-September, 26.9% less than in thecomparable period. The operating profit included a total of EUR -17.1(18.5) million in non-recurring items. These non-recurring expensesare related to restructuring of operations in several divisions andinclude, for example, voluntary severance packages offered toemployees. In the comparable period, non-recurring items consisted ofcapital gains from divestments, and restructuring costs and inventorywrite-downs in multi-volume book publishing.NON-RECURRING ITEMS 7-9/ 7-9/ 1-9/ 1-9/ 1-12/EUR million 2009 2008 2009 2008 2008MagazinesRestructuring expenses (Magazines Belgium) -0.2 -1.5Restructuring expenses (Magazines -4.6 -4.6Netherlands)A gain on sale of R.C.V. Entertainment 23.5 23.5A gain on sale of Payback Kft 7.0Expenses on closing down a youth site andrelated impairment loss -5.1Impairment loss of immaterialrights and goodwill -78.6NewsExpenses related to the efficiency -8.4programmeLearning & LiteratureRestructuring expenses -1.5 -1.5Expense related to the sale of children's -1.1 -1.1magazinesInventory write-downs andrestructuring expenses -6.5 -6.5 -7.6Other companiesA gain on sale of a land area 1.5 1.5NON-RECURRING ITEMS TOTAL -7.4 -6.5 -17.1 18.5 -59.3The Group's operating profit was EUR 163.1 (265.2) million or 8.0%(11.9%) of net sales. Operating profit grew in Sanoma Entertainment,where all business units developed favourably. In other divisions,operating profit decreased mainly as a result of lower sales andrestructuring expenses.Sanoma's net financial items totalled EUR -21.7 (-29.8) million.Financial income amounted to EUR 19.6 (12.7) million, of whichexchange rate gains were EUR 13.1 (3.4) million. Financial expensesamounted to EUR 41.3 (42.5) million and consisted mainly of interestexpenses, which amounted to EUR 21.5 (38.5) million. The refinedfinancing structure and lower reference rates have clearly decreasedthe Group's interest expenses. Exchange rate losses amounted to EUR13.2 (2.9) million. Financial expenses also included a write-down ofthe shares in the e-commerce company Fruugo, amounting to EUR 5million.The result before taxes was EUR 139.2 (240.4) million. Sanoma'seffective tax rate was higher than in the comparable period, mainlybecause of a non-taxable capital gain in the first quarter of 2008.Earnings per share were EUR 0.62 (1.10). The result for the periodtotalled EUR 98.5 (180.7) million.Efficiency improvementsIn 2009, Sanoma has initiated a large number of efficiencyimprovement programmes to strengthen its competitive position as wellas safeguard profitability and cash flows.Structural changes initiated by Sanoma so far include an extensiveprogramme in Sanoma News, where editorial and marketing processeshave been redesigned to increase co-operation between print andonline operations. In addition, Sanoma News will cut costs by EUR 30million in 2009 through diminished personnel expenses, among others.Sanoma Magazines Belgium will in the future focus more on its keytitles and strengthening relationships with its readers. This renewedstrategy will also lead to annual cost savings of EUR 12 million anda reduced number of personnel. In Estonia, Sanoma Trade has decidedto reorganise its businesses. This reorganisation aims to ensure itsability to compete also in the future, improve the efficiency ofoperations, and more importantly, enhance co-operation in marketingand business development. Sanoma Magazines Netherlands willstrengthen the two pillars of its operations by gathering all printoperations under Sanoma Uitgevers and all online operations underSanoma Digital Netherlands. The Dutch direct marketing organisationhas been closed down since direct marketing has become less importantas a marketing channel. In Sanoma Learning & Literature,restructuring continues in multi-volume books and integration ofoperations in language services.Sanoma has also reduced personnel and carried out short-term costsaving programmes in several other business units either as a resultof the weakened economic outlook or related to restructuringinitiated by changing business needs in, for example, Russia, theCzech Republic and Finland. In the first nine months, the Group hascut back its operating expenses by 6.7% with both cost of sales andother operating expenses decreasing in line with the net salesdevelopment. At the end of September, Sanoma had over 1,400 employees(FTE) less than at the year-end, corresponding to a reduction of 7.9%in work force. Compared to the end of September 2008, the reductionis nearly 1,700 or 9.1%. The effects of personnel reductions arebecoming more visible in personnel expenses towards the end of theyear and at the beginning of 2010.The non-recurring costs of the restructuring measures in the firstnine months amount to EUR 17.1 (6.5) million. Since the efficiencyimprovements will continue in the fourth quarter as well, morerestructuring costs will be incurred.Balance sheet and financial positionAt the end of September, the consolidated balance sheet totalled EUR3,186.0 (3,649.1) million. Cash flow from operations was EUR 119.6(155.4) million and cash flow per share was EUR 0.74 (0.97). Cashflow from operations was down as a result of a weaker operationalresult in January-September. The development of cash flow fromoperations was balanced by a decrease in working capital, lowerfinancial items and taxes paid.There were no significant changes in the Group's financial positionin January-September. Sanoma's equity ratio at the end of Septemberwas 39.4% (39.0%). Net gearing increased to 90.3% (75.9%). Equitytotalled EUR 1,181.7 (1,346.2) million. Interest-bearing liabilitieswere EUR 1,133.4 (1,326.7) million and interest-bearing net debt EUR1,067.0 (1,021.5) million. At the end of September, the Group's cashand cash equivalents totalled EUR 66.4 (305.1) million. In thecomparable period, the Group prepared for the instability of thefinancial markets by increasing its cash balance. The cash balancewas normalised by the end of 2008.Sanoma's financial position is stable. The existing creditfacilities, such as the syndicated, long-term credit facility of EUR802 million, cover all Sanoma's financing needs and Sanoma has noneed for material refinance in the near future. Net debt/EBITDA ratioat the end of September was 2.8, in line with the Group's target tokeep the ratio below 3.5.Investments, acquisitions and divestmentsInvestments in tangible and intangible assets totalled EUR 61.2(77.6) million in January-September, and consisted mainly of ICTsystems as well as replacement investments and renovations. Sanomahas a policy to keep the annual capital expenditure below EUR 100million. In 2009 the Group's expenditure is expected to be well belowthat level.There were no significant transactions during the review period. Inthe comparable period, Sanoma Magazines divested the Dutch moviedistribution company R.C.V. Entertainment and a capital gain of EUR23.5 million was recorded for the transaction. On 11 March 2008,Sanoma Learning & Literature completed its acquisition of the Polisheducational publisher Nowa Era.SANOMA MAGAZINESSanoma Magazines, operating in 13 European countries, is a leadingpublisher of magazines and has a strong presence in digital media.The company actively reaches out to an audience of 290 millionconsumers at every life stage, and aims to strengthen its marketleader positions in each of the markets it operates in.- Sanoma Magazines' strong brands have been able to outperform marketdevelopment in its key markets.- Efficiency improvements are becoming visible: Sanoma Magazines'EBIT excluding non-recurring items developed clearly better in thethird quarter than in the two previous quarters.- Sanoma Magazines prepares for the future by reorganising its Dutchprint and online operations.Key indicators 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 266.1 304.0 -12.5 804.2 907.9 -11.4 1,246.8Operating profit 27.9 31.6 -11.6 75.0 102.8 -27.1 138.9excluding non-recurringitems % of net sales 10.5 10.4 9.3 11.3 11.1Operating profit 23.1 31.6 -26.8 68.9 126.3 -45.5 85.7Capital expenditure 17.8 19.9 -10.7 26.8Number of employees at the end of the 5,355 5,911 -9.4 5,900period FTEAverage number of employees FTE 5,521 5,668 -2.6 5,731* In 2009, the non-recurring items included in the second quarter EUR1.3 million and in the third quarter EUR 0.2 million Sanoma MagazinesBelgium's restructuring expenses and in the third quarter EUR 4.6million Sanoma Magazines Netherlands' restructuring expenses. In2008, the non-recurring items included EUR 23.5 million capital gainfrom the divestment of movie distributor R.C.V. Entertainment in thefirst quarter.Operational indicators * 1-9/ 1-9/ 2009 2008Number of magazines published 298 333Magazine copies sold, thousands 280,874 312,835Advertising pages sold 37,788 49,123* Including joint venturesSanoma Magazines' net sales in January-September amounted to EUR804.2 (907.9) million, 11.4% less than in the comparable period. Thegeneral economic situation affected advertising sales in alloperating countries with Sanoma Magazines International's net salesbeing impacted the most. The Division's net sales adjusted forchanges in the Group structure were down by 12.2%. Of the Division'snet sales, 18% (17%) came from Finland. In July-September, theDivision's net sales decreased by 12.5% to EUR 266.1 (304.0) milliondue mainly to weakening sales in Sanoma Magazines International.The Division's advertising sales decreased by 24% inJanuary-September and represented 28% (32%) of net sales. Theeconomic downturn has hit Sanoma Magazines International'sadvertising revenues in particular. The Division's online advertisingsales were on the comparable period's level.Sanoma Magazines' circulation sales decreased by 4% and represented61% (57%) of the Division's net sales. Subscription sales remainedstable during the first nine months and even increased slightly inthe Netherlands, Belgium and Finland. Single copy sales declined,mostly in the CEE countries.In January-September Sanoma Magazines Netherlands' net sales amountedto EUR 354.5 (371.7) million, due to weaker print advertising salesthan in the comparable period. According to Nielsen Media Research,the consumer magazine advertising market in the Netherlands decreasedby 17% in January-August 2009. However, Sanoma Magazines Netherlands'strong brands outperformed advertising market development both inprint and online. New assets contributed to Sanoma MagazinesNetherlands' online advertising growth of over 7%. In total,advertising sales represented 26% (27%) of Sanoma MagazinesNetherlands' net sales. Sanoma Magazines Netherlands also improvedits market position in the readers' market. Its circulation revenueswere almost at the comparable period's level, even though some titleshave been discontinued during the year. Subscription sales inparticular developed positively. Managing the Division's key titlesis important in all markets and in the Netherlands, one of the mostpopular women's weeklies, Margriet, was renewed in July to furtherstrengthen its position in the readers' and advertising markets.Sanoma Magazines Netherlands has decided to simplify itsorganisational structure and will combine all printed products underSanoma Uitgevers and all online operations under Sanoma DigitalNetherlands. This enables Sanoma Magazines Netherlands to betterrespond to the needs of the consumers and advertisers, shareknowledge internally and improve efficiency.Sanoma Magazines International's net sales in January-September wereEUR 152.8 (224.3) million. The economic downturn has affected SanomaMagazines International's sales strongly. The reported net sales werealso clearly affected by the negative translation effects ofespecially Russian Rouble and Hungarian Forint. Advertising salesdecreased in all countries, especially in Russia, Hungary andUkraine. Sanoma Magazines International reacted quickly to changingmarket conditions at the beginning of the year and discontinued anumber of unprofitable magazine titles, which also loweredadvertising sales, in particular in the Czech Republic. In total,advertising sales represented 48% (55%) of Sanoma MagazinesInternational's net sales. Circulation sales were clearly below thecomparable period. This is also partly attributable to the reducednumber of magazines published and, in some cases, the number ofissues. The publication frequency of various titles has been adjustedin order to save costs. Sanoma Magazines International has improvedits market share in Romania and is now the leading magazine publisherin the country. In Hungary, the company's leading position in theonline market was further strengthened through the acquisition of thecomparison site Olcsobbat.hu in September.Net sales at Sanoma Magazines Belgium totalled EUR 154.8 (163.3)million. In the readers' market, Sanoma Magazines Belgiumoutperformed the market development. Its circulation sales remainedstable, with subscription sales even growing. In line with the marketdevelopment, advertising sales were below the comparable period andrepresented 25% (27%) of net sales. Sanoma Magazines Belgium'srenewed strategy builds on its portfolio of strong brands, the highquality of its magazines and its strong relationships with readers.Sanoma Magazines Belgium is redesigning its organisation to be ableto better use the opportunities in the changing media environment.Sanoma Magazines Finland's net sales amounted to EUR 145.3 (151.7)million. Circulation sales in Finland held up well but advertisingsales were down from the comparable period. According to TNS GallupAdex, advertising in consumer magazines in Finland decreased by 21%in January-September and the magazine single copy market decreased involume by 9%. Advertising sales represented 13% (16%) of SanomaMagazines Finland's net sales. Sanoma Magazines Finland outperformedthe market development both in advertising and the readers' marketand has increased its market shares. In particular the key titles,like the women's weekly Me Naiset and the glossy Gloria together withits brand extensions have increased their readership. In addition,the custom publishing operations of Sanoma Magazines Finland havegained new customers and improved their market share.In January-September, Sanoma Magazines' operating profit excludingnon-recurring items was EUR 75.0 (102.8) million, a decrease of 27.1%from the comparable period. Decreasing advertising sales affectedresults in all businesses, in particular in Sanoma MagazinesInternational and also in Sanoma Magazines Netherlands. Operatingprofit improved slightly in Finland. Non-recurring items totalled EUR-6.1 (23.5) million and were related to restructuring in SanomaMagazines Belgium and the direct marketing organisation in theNetherlands. In the comparable period, operating profit was improvedby a EUR 23.5 million non-recurring gain from the divestment of moviedistributor R.C.V. Entertainment. Operating profit for the first ninemonths amounted to EUR 68.9 (126.3) million. The Division hasinitiated several programmes to improve the profitability of itsbusiness units. These contingency plans executed in all markets arebecoming more visible and in July-September, the Division's operatingprofit excluding non-recurring items developed clearly better than inthe two previous quarters and totalled EUR 27.9 (31.6) million, 11.6%less than in the comparable period.Sanoma Magazines continues to develop its magazine portfolio andinvest in strengthening its market positions, with a special focus onits key titles in each operating country. Sanoma Magazines wants tobecome stronger in digital media, and can do so by leveraging itsexisting assets. The growth in digital operations will be speeded upby organisational changes. At the same time Sanoma Magazinescontinues to strongly focus on improving efficiency and savingcosts.In 2009, Sanoma Magazines' net sales are expected to decrease and itis estimated that operating profit excluding non-recurring items willbe clearly below the previous year's level.SANOMA NEWSSanoma News is the leading newspaper publisher in Finland, and itsproducts, both in print and digital format, have a strong presence inthe lives of their readers. In addition to Helsingin Sanomat, thelargest daily in the Nordic region, Sanoma News publishes othernational and regional newspapers and is also a significant digitalplayer in Finland.- Sanoma News reshapes its organisation to better respond to changingneeds of its customers and improve efficiency. The total savings goalof EUR 30 million will be achieved during 2009. The efficiencyimprovements are visible in Sanoma News' third quarter results.- The daily newspaper Helsingin Sanomat prepares to celebrate its120th anniversary by launching revamped content supported by renewededitorial processes.- The circulation development of the tabloid Ilta-Sanomat continuedto show encouraging signs in the third quarter. Online advertising ofthe Ilta-Sanomat business unit increased in the third quarter by 45%.- Online display advertising performed well, partly boosted by SanomaOutlet, a performance based online advertising sales system launchedin the summer with very promising results.Key indicators 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 101.2 113.5 -10.8 316.0 355.5 -11.1 474.7Operating profit 11.8 15.2 -22.7 29.8 47.9 -37.8 57.3excluding non-recurringitems % of net sales 11.6 13.4 9.4 13.5 12.1Operating profit 11.8 15.2 -22.7 21.4 47.9 -55.4 57.3Capital expenditure 8.0 13.5 -40.5 19.6Number of employees at the end of the period 2,322 2,433 -4.6 2,449FTEAverage number of employees FTE 2,431 2,504 -2.9 2,491* In 2009, the non-recurring items included in the first quarter EUR2.3 million and in the second quarter EUR 6.1 million expensesrelated to the efficiency programme.Operational indicators 1-9/ 1-9/ 2009 2008Distribution of free sheets, millions 56.0 70.2 1-12/ 1-12/Audited circulation 2008 2007Helsingin Sanomat 412,421 419,791Ilta-Sanomat 161,615 176,531 7-9/ 7-9/Online services, unique visitors, weekly 2009 2008Iltasanomat.fi 1,603,731 1,364,050HS.fi 1,094,630 939,063Huuto.net 429,449 437,834Oikotie.fi 347,121 317,769Taloussanomat.fi 444,694 286,012Keltainenporssi.fi 184,658 196,560Sanoma News' net sales in January-September totalled EUR 316.0(355.5) million, a decrease of 11.1% from the comparable period. Mostof the decrease came from the Helsingin Sanomat business unit, whereadvertising sales declined significantly. Net sales in other businessunits were also lower than in the comparable period. Adjusted forchanges in the Group structure, net sales decreased by 11.7%. InJuly-September, the advertising market continued to be weak and theDivision's net sales were down by 10.8%, to EUR 101.2 (113.5)million.Although the advertising market contraction seems to have stabilisedin Finland in the past few months, the market is significantly belowthe comparable period. According to TNS Gallup Adex, newspaperadvertising in Finland decreased by 24% in January-September. Jobadvertising in Finland decreased by 55% and real estate advertisingby 38%. Advertising in free sheets was down by 18%. Onlineadvertising included in statistics also decreased by 7%. Followingthe general advertising environment, the advertising sales of SanomaNews decreased by 25% from the comparable period, with the classifiedadvertising development affecting the sales the most. Onlineadvertising sales, especially display advertising, performed clearlybetter than the market and were almost at the comparable period'slevel. Advertising sales represented 45% (53%) of the Division's netsales in January-September.The Finnish printed tabloid market is affected by the structuralmigration to online and declined by 8% in January-September. However,the circulation development over the summer showed positive signs.The amount of online visitors is increasing constantly, improving thereach of Sanoma News. The Division's circulation sales grew by 3%with both subscription and single copy sales increasing. Circulationsales accounted for 44% (38%) of the Division's net sales.The Helsingin Sanomat business unit's net sales totalled EUR 176.3(210.9) million. Circulation sales increased from the comparableperiod due to new hybrid subscription models combining print anddigital products and increases in subscription prices. Advertisingsales were down markedly, and Helsingin Sanomat's job and real estateprint advertising, in particular, continued to be strongly affectedby the overall economic situation. Job advertising in the HelsinginSanomat daily paper was 56% behind the comparable period and realestate advertising by 55%. In total, advertising sales represented53% (62%) of business unit's net sales. According to the latestNational Readership Survey, Helsingin Sanomat daily newspaperincreased the number of its readers. Together with its growing onlineaudience, the reach of Helsingin Sanomat is at an all-time high.Helsingin Sanomat has restructured its operations to develop itsmultichannel news publishing further in order to better respond tothe changing needs of readers, as well as strengthen its media salesand improve the efficiency.Net sales of the Ilta-Sanomat business unit amounted to EUR 57.9(63.0) million. Ilta-Sanomat had a 56.9% (57.1%) share of the tabloidmarket. The positive development of the newsstand market togetherwith the content revamp in 2008, price increase at the end of 2008and successful campaigning during 2009 raised Ilta-Sanomat's singlecopy sales to the comparable period's level. The overall readershipwas further strengthened by the continuous growth of online readers.The unit's advertising sales decreased due to declining printadvertising revenues. Online advertising sales of the Iltasanomat.fisite developed positively in the second and third quarters. In total,advertising sales represented 22% (28%) of the business unit's netsales in January-September.Net sales from other publishing decreased to EUR 68.0 (72.8) milliondue to lower advertising revenues in the regional papers inparticular. However, the circulation sales in the regional papersgrew slightly. Sanoma Lehtimedia has streamlined its organisation andis now building a joint multilocal virtual newsroom for all itsregional papers. In the Sanoma Kaupunkilehdet business unit for freesheets net sales decreased due to the merging of the Metro andUutislehti 100 titles last autumn. During the year, SanomaKaupunkilehdet has improved its efficiency and gained market sharewithin the free sheet market. The Sanoma Digital business unit's netsales increased and its advertising sales developed positively inparticular during the third quarter.Net sales from other businesses, mainly comprising internal billing,were EUR 107.1 (111.8) million. Net sales decreased due to fewerinternal printing jobs. External printing services developed well andgrew by 26% from the comparable period.In January-September, Sanoma News' operating profit excludingnon-recurring items was EUR 29.8 (47.9) million, 37.8% less than inthe comparable period. The non-recurring items included in theoperating profit totalled EUR -8.4 (0.0) million and consisted ofexpenses related to the efficiency programme, including such items asvoluntary severance packages to employees. The non-recurring costswere incurred in the first and second quarters. Operating profitincluding the non-recurring items totalled EUR 21.4 (47.9) million inthe first nine months. Efficiency improvements and cost-savingsoffset only partly the effects of decreased advertising sales andoperating profits were below the comparable period in all reportedbusinesses. In July-September, the Division's operating profitexcluding non-recurring items decreased by 22.7% and was at EUR 11.8(15.2) million. A number of cost-saving measures helped Sanoma Newsto improve its efficiency compared to the previous quarters.Sanoma News will continue the planned development of its printedproducts and digital services. Renewal projects are ongoing in allunits to develop the products so that they will meet the changingcustomer needs. The company has also decided to invest in a newreader-customer management system to support, among other actions,product development opportunities for newspapers in the multimediaenvironment. However, in 2009 the media advertising market continuesto be challenging. Sanoma News will therefore continue its programmeto reshape its organisation and to adapt its operations to the lowerrevenue level.In 2009, net sales of Sanoma News are estimated to decrease clearlyand operating profit excluding non-recurring items will lessenmarkedly from the previous year due to the decline in the advertisingmarket.SANOMA ENTERTAINMENTSanoma Entertainment offers entertaining experiences on television,radio, online and mobile. Sanoma Entertainment's business unitsinclude Nelonen Media, which focuses on broadcast operations, andWelho, Finland's largest cable television operator. The Division'slatest business unit is Sanoma Games, which is focused on onlinecasual gaming.- Sanoma Entertainment continues to perform very well. The Division'soperating profit continued to grow significantly also in the thirdquarter, with all businesses improving from 2008.- Welho launched a new pick-and-mix pay TV service, Welho Mix,enabling customised channel choices.- In August, Nelonen Media reached its all-time high market share ofFinnish TV advertising, 36.7%.Key indicators 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 35.0 34.7 0.9 115.9 116.1 -0.1 157.1Operating profit excluding 3.8 2.8 33.9 16.8 13.2 27.1 17.3non-recurring items % of net sales 10.8 8.2 14.5 11.4 11.0Operating profit 3.8 2.8 33.9 16.8 13.2 27.1 17.3Capital expenditure 6.1 9.4 -35.1 13.5Number of employees at the end of the period 445 487 -8.6 488FTEAverage number of employees FTE 474 478 -0.9 482Operational indicators 1-9/ 1-9/Thousands 2009 2008TV channels' share of Finnish TV advertising 33.6% 29.8%TV channels' national commercial viewing share 29.8% 30.2%TV channels' national viewing share 14.7% 14.2%Number of connected households (30 Sept) 326 322Number of pay TV customers (30 Sept) 67 68Number of broadband internet connections (30 Sept) 112 103Sanoma Entertainment's net sales in January-September were at thecomparable period's level and amounted to EUR 115.9 (116.1) million.In addition, net sales adjusted for changes in the Group structureremained stable. Advertising sales accounted for 49% (50%) of SanomaEntertainment's net sales. In July-September, net sales were EUR 35.0(34.7) million.Broadcast operations' net sales totalled EUR 64.5 (65.1) million inJanuary-September, while the Finnish TV advertising market shrank by13% according to TNS Gallup Adex. Nelonen Media's advertising salesoutperformed the market, in particular due to the successfulimplementation of the multichannel strategy. New targeted TVchannels, national radio stations and WebTV all increased theiradvertising sales. Nelonen Media has increased its market share ofFinnish TV advertising significantly in January-September, to 33.6%(29.8%).Nelonen Media's new WebTV service, Ruutu.fi, launched in June 2009has rapidly become very popular. Ruutu.fi offers streaming broadcastsof TV series as a free catch-up service, extra materials for popularprogrammes, and podcasts. The lifestyle channel Liv was granted aone-year licence on the terrestrial network and the broadcasts willbegin in December, which will further improve the good viewing sharesthe channel has achieved in its first year of operations.According to the Association of Finnish Broadcasters, national radioadvertising decreased by 1% in January-September. Nelonen Mediaincreased its share of the national radio advertising to 12.7%(11.3%). Nelonen Media repositioned Radio Aalto in August to focus onsoft rock. Weekly audiences of both Radio Aalto and Radio Rock havedeveloped positively.Net sales from other operations were EUR 52.4 (51.5) million andinclude cable and broadband operator Welho and Sanoma Games, theDivision's emerging online gaming business unit. Welho's fast andeasy-to use broadband services together with rewarded customerservice have been the key in increasing the number of fixed broadbandsubscribers while the market has been declining. For the fourth yearin row, Welho scored the highest points in the customer satisfactionsurvey for the Finnish broadband operators. In line with the Finnishpay TV market development, Welho's pay TV operations were stable.Welho Mix, a pay TV channel package offering extensive customisation,was launched successfully in September. Sanoma Games launched newversions of its main products as well as a new service, Gamer.fi, inSeptember.Sanoma Entertainment's operating profit increased markedly inJanuary-September, by 27.1%, and totalled EUR 16.8 (13.2) million.The operating profit did not include any non-recurring items.Operating profit improved in all operations. The increase was drivenby lower expenses in general and effective cost-saving measures. Thegood development of both broadcasting and other operations continuedin July-September, and operating profit grew by 33.9% amounting toEUR 3.8 (2.8) million.In line with its strategy, Sanoma Entertainment focuses on its corebusinesses: television, broadband services, online gaming and onlinevideo. Sanoma Entertainment continues to develop its digital contentand media solutions business, invest resources in the development ofits online services and in its viewing and listening shares. Inaddition, Sanoma Entertainment is refining its processes and serviceoffering to better meet the needs of its customers and to improve itsefficiency.In 2009, Sanoma Entertainment's net sales are expected to be at theprevious year's level but operating profit excluding non-recurringitems is expected to increase clearly.SANOMA LEARNING & LITERATURESanoma Learning & Literature is a leading European educationalpublisher offering learning materials in print and digital format.With operations in nine countries, the Division has growinginternational language service operations and is also the leadinggeneral literature publisher in Finland.- Learning performed well.- Economic environment impacted language services, which are focusingon building a strong player in the Nordic countries.- Restructuring in multi-volume books continued in Finland and innon-core activities in the Netherlands.Key indicators 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 117.6 133.2 -11.7 280.4 302.0 -7.1 390.0Operating profit 35.7 42.8 -16.6 53.8 64.8 -16.9 53.2excluding non-recurringitems % of net sales 30.3 32.1 19.2 21.5 13.6Operating profit 33.1 36.3 -8.9 51.2 58.3 -12.1 45.6Capital expenditure 9.8 10.9 -9.9 15.6Number of employees at the end of the period 2,683 2,854 -6.0 2,908FTEAverage number of employees FTE 2,801 2,684 4.3 2,737* In 2009, the non-recurring items included EUR 1.5 millionrestructuring expenses and EUR 1.1 million expenses related to thesale of children's magazines. In 2008, the non-recurring itemsincluded EUR 6.5 million of write-downs and restructuring costs inthe multi-volume and year book publishing in the third quarter.Operational indicators 1-9/ 1-9/ 2009 2008LearningNumber of new titles published, books 1,199 1,191Number of new titles published, digital products 332 357Literature and other businessesNumber of new titles published, books 342 383Number of new titles published, digital products 46 47Books sold, millions 31.6 32.1In January-September Sanoma Learning & Literature's net salesamounted to EUR 280.4 (302.0) million, a decrease of 7.1% from thecomparable period, coming mainly from exchange rates and decreasingnet sales of literature and printing and lower sales in the businesstraining markets in Finland and Hungary. Net sales adjusted forchanges in the Group structure decreased by 9.7%. A total of 65%(63%) of the Division's net sales came from outside Finland. InJuly-September, the Division's net sales were EUR 117.6 (133.2)million, a decrease of 11.7% due to decreasing sales in literature aswell as learning sales in the Netherlands occurring already in thesecond quarter. In addition, the reported net sales were affected bythe negative translation effect of the Polish zloty and the Hungarianforint.Net sales in learning totalled EUR 206.4 (221.1) million. In theNetherlands net sales were at the comparable period's level. Malmbergincreased its market share in the primary education market and hasdivested unprofitable adjacent businesses like educational magazinesand student event organising. In Finland net sales were largelyaffected by the decrease in sales of training and business books. Theupper secondary sales were under pressure because of increasingre-use of textbooks. Net sales grew clearly in Belgium, where VanIn's learning solutions have been successful in all segments. NowaEra in Poland has also increased its market share. In Hungary, thesales of learning materials are stable, but net sales were impactedby a severe decrease of sales in the business training segment. Thegovernment spending for e-learning initiatives has been delayed inPoland, which has lowered YDP's sales from the comparable period,when a lot of tenders were opened already during the second quarter.Net sales in language services grew to EUR 21.2 (19.5) million. Theincrease is attributable to the new operations acquired in 2008.Sales of language services have been strongly affected by the generaleconomic situation. The language service business unit is nowfocusing on integrating its six country organisations and processesin order to build an efficient and distinctive language serviceprovider in the Nordic market.Net sales in literature and other businesses were EUR 60.9 (71.5)million. WSOY General Literature's net sales are under pressure sincebookstores are purchasing less to avoid high inventory risks. InFinland, the general literature market has slowed down considerably,but WSOY General Literature has performed relatively well in themarket. Net sales in multi-volume and year-book publishing areclearly lower than in the comparable period and the restructuring ofthese operations continues in Finland. Printing sales were down.The Division's operating profit excluding non-recurring items inJanuary-September amounted to EUR 53.8 (64.8) million, 16.9% lessthan in the comparable period. The decrease came mainly from thelanguage service operations, where the economic downturn has affectedsales considerably. Operating profit also weakened in learning,mainly due to negative exchange rate developments, but also from thenegative impact of the consolidation of Nowa Era's seasonal losses inthe first quarter and lower profits in Finland. Operating profit inliterature and other businesses improved. Cost-savings have partlyoffset the effect lower sales have had on profits. The non-recurringitems totalled EUR -2.6 (-6.5) million and were related to therestructuring of unprofitable units both during the period under thereview and the comparable period. Operating profit includingnon-recurring items totalled EUR 51.2 (58.3) in the first ninemonths. In July-September, the Division's operating profit excludingnon-recurring items decreased by 16.6% to EUR 35.7 (42.8) million dueto lower net sales. In learning, sales and profits in some countrieswere accrued already in the second quarter whereas in 2008 they weremore focused on the third quarter. The Division's business is veryseasonal. Profit in learning is mainly accrued in the second andthird quarters.Sanoma Learning & Literature continues to focus on furtherinternationalising its learning business, expanding language servicesand maintaining market leadership in Finnish general literaturepublishing. Customers are increasingly looking at customisedsolutions both in learning and language services. Sanoma Learning &Literature is well positioned to offer these and can gain efficiencyfrom developing platforms to be used in several markets.In 2009, it is estimated that the net sales and operating profitexcluding non-recurring items of Sanoma Learning & Literature willdecrease from the previous year's level. The development of net salesand operating profit is significantly affected by the exchange ratedevelopments in Sanoma Learning & Literature's operating countries.SANOMA TRADERetail specialist Sanoma Trade's strengths are a thoroughunderstanding of customers' needs and solid concepts. Sanoma Tradeserves its customers in 230 million annual sales contacts at kiosks,bookstores and movie theatres. Operating in seven countries, pressdistribution is a strong link between publishers and retailers.- Kiosk operations performed relatively well; sales growth inLithuania, for example.- Good content and concept filled the seats in the movie theatres. InFinland, movie admissions have grown 7% in 2009 and box-officerevenues reached all-time high figures in the third quarter.- The recession in the Baltic countries affects sales in allbusinesses, but cost-savings partly offset its impact on profits.Key indicators 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 209.2 221.4 -5.5 592.6 627.3 -5.5 866.6Operating profit 9.7 13.0 -25.4 17.3 30.4 -42.9 45.1excluding non-recurringitems % of net sales 4.7 5.9 2.9 4.8 5.2Operating profit 9.7 13.0 -25.4 17.3 30.4 -42.9 45.1Capital expenditure 19.3 23.2 -16.7 33.8Number of employees at the end of the period 6,118 6,930 -11.7 6,626FTEAverage number of employees FTE 6,201 6,598 -6.0 6,633Operational indicators 1-9/ 1-9/Thousands 2009 2008Customer volume in kiosk operations 147,117 159,173Customer volume in bookstores 4,857 5,082Customer volume in movie theatres 7,061 7,487Number of copies sold (press distribution) 263,205 292,288Sanoma Trade's net sales in January-September totalled EUR 592.6(627.3) million, 5.5% less than in the comparable period. Net salesof kiosk operations were at the comparable period's level. Most ofthe decrease in the Division's net sales came from pressdistribution. Net sales adjusted for changes in the Group structuredecreased by 5.3%. Of Sanoma Trade's net sales, 32% (34%) came fromoutside Finland. In July-September, the Division's net sales weredown by 5.5% and totalled EUR 209.2 (221.4) million.Net sales from kiosk operations amounted to EUR 298.3 (300.9)million. Kiosk sales in Finland were in line with the comparableperiod's level. Net sales increased by 5% in Lithuania. There was anincrease also in the new operations of Romania. In Latvia and Russia,kiosk sales were down. Sanoma Trade has closed down over 100loss-making kiosks, mostly in Latvia and Lithuania. The R-kioskconcept will be renewed in the coming years and the first pilots ofthe new concept in Finland will be launched from November onwards. InRomania, the entry phase, which started in 2008 when the first 18kiosks in the country were opened, was finalised.Net sales from press distribution were EUR 163.1 (180.2) million. InFinland, the sales of tabloids have developed positively since thesummer, and also in the Netherlands, the newsstand volumes have shownsigns of recovery in the last couple of months. Cumulatively,however, press distribution volumes were down everywhere. In theBaltic markets, cover prices rose due to VAT increases, which alsoaffected volumes.Net sales from bookstores were EUR 78.8 (91.9) million. Net sales ofthe comparable period included the subscription business divested inMay 2008. In line with the sluggish literature market development,net sales from bookstores decreased both in Finland and Estonia.September saw the launch of new titles from many popular Finnishauthors, which is expected to contribute positively to sales.Net sales from movie operations totalled EUR 64.4 (67.6) million.Movie admissions in Finland have grown steadily during the first ninemonths from the record year in 2008 and net sales increased inFinland. Operations also developed positively in Estonia where,however, the competition is expected to increase when a new playerwill begin operations in the fourth quarter. Alternative content and3D movies clearly attract customers. The economic downturn and lowerprivate consumption affected movie sales in the Baltic countries andnet sales decreased in Latvia in particular, where also competitionhas increased.In January-September, Sanoma Trade's operating profit amounted to EUR17.3 (30.4) million, a decrease of 42.9% mainly coming from theforeign operations. The operating profit did not include anynon-recurring items. The operating profit of kiosk operationsdecreased due to declining sales and the earlier investments inRussia and Romania. In press distribution, the operating profit alsodeclined in all markets. The operating profit was below thecomparable period in bookstores and movie operations. However, theFinnish and Estonian movie theatres performed well. InJuly-September, the Division's operating profit was down by 25.4% andtotalled EUR 9.7 (13.0) million. The third quarter's development isthe result of Sanoma Trade's intensive cost-saving programmes in allbusinesses. Sanoma Trade is aiming to save some EUR 20 million in2009. Sanoma Trade has also initiated restructuring measures. InEstonia, the Division will consolidate all its operations in thecountry to ensure its ability to compete also in the future and tobring added value to the consumers. The target is to seek growthopportunities, improve the efficiency of marketing and conceptdevelopment, as well as to reduce costs. Press distribution and movieoperations performed well in Finland, but the weak results of foreignoperations in general decreased the Division's result in the thirdquarter.Sanoma Trade continues to develop concepts in all its businesses,particularly its kiosk and bookstore concepts. Efficient chainmanagement as well as the product and service offering catering tothe needs of customers are key success factors in all markets andwill ensure the competitiveness of Sanoma Trade. With its 230 millionannual customer contacts, Sanoma Trade gains valuable consumerinsight and has good possibilities to develop its product and serviceoffering.In 2009, Sanoma Trade's net sales are expected to decrease somewhatand operating profit excluding non-recurring items to decreasemarkedly.THE SANOMA GROUPDividendIn line with the Board's proposal, the Annual General Meeting decidedto pay out a dividend of EUR 0.90 (1.00) per share for the year 2008.The dividend was paid in the second quarter. Sanoma conducts anactive dividend policy and primarily distributes over half of theGroup result after taxes in dividends.Shares and holdingsIn January-September, a total of 57,269,565 (80,877,526) Sanomashares were traded on the NASDAQ OMX Helsinki. Traded sharesaccounted for 36% (50%) of the average number of shares forthe period. Sanoma's total stock exchange turnover was EUR 609.7(1,285.1) million.In January-September, the volume-weighted average price of a Sanomashare was EUR 10.61, with a low of EUR 8.02 and a high of EUR 15.65.At the end of the review period, Sanoma's market capitalisation wasEUR 2,428.6 (2,128.7) million and the closing price of the share wasEUR 15.09 (13.29). At the end of September 2009, Sanoma had 20,922shareholders, with foreign holdings accounting for 10.1% (10.9%) ofall shares and votes. There were no major changes in share ownershipduring the review period and Sanoma did not issue any flaggingannouncements.During the period under review, the Board had an authorisation torepurchase the Company's shares. No shares were repurchased inJanuary-September 2009 and the Company shares acquired in 2008 werecancelled in the first quarter. During the first quarter, the numberof shares also changed because of shares registered with stockoptions. There were no changes during the following quarters and atthe end of September, Sanoma had 160,943,658 shares and theregistered share capital totalled EUR 71,258,986.82.Board of Directors and auditorsThe AGM of 1 April 2009 confirmed the number of Sanoma's Boardmembers at ten. Board members Jaakko Rauramo and Sakari Tamminen werere-elected, and Annet Aris was elected to the Board as a new member.The Board of Directors of Sanoma consists of the following: JaakkoRauramo, Chairman; Sakari Tamminen, Vice Chairman; and Annet Aris,Robert Castrén, Jane Erkko, Paavo Hohti, Sirkka Hämäläinen-Lindfors,Seppo Kievari, Rafaela Seppälä and Hannu Syrjänen as members.The AGM re-appointed Pekka Pajamo, APA, and Sixten Nyman, APA, as hisdeputy, and chartered accountants KPMG Oy Ab, with Kai Salli, APA,acting as the Auditor in Charge, as the auditors of the Company.Board authorisationsThe AGM held on 1 April 2009 authorised the Board of Sanoma to decideon the repurchase of maximum 16,000,000 of the Company's own shareswith the Company's unrestricted shareholders' equity. Theauthorisation is effective until 30 June 2010. The Board has not usedthis authorisation.In addition, the Board has a valid authorisation to increase theshare capital with a maximum of 82,000,000 new shares and thetransfer of a maximum of 5,000,000 treasury shares. Under thisauthorisation, the Board decided on 19 December 2008 on the issuanceof Stock Option Scheme 2008.During the review period, the authorisation by the AGM of 1 April2008 for repurchasing the Company's own shares was in force. Theauthorisation was not used during the review period and its validityended on 1 April 2009.Seasonal fluctuationThe net sales and result of Sanoma Magazines, Sanoma News and SanomaEntertainment are particularly affected by the development ofadvertising. Advertising sales are influenced, for example, by thenumber of newspaper and magazine issues published during eachquarter, which varies annually. Television advertising in Finland isusually strongest in the second and fourth quarters.Learning accrues most of its net sales and results during the secondand third quarters.A major portion of the net sales and results in retail are, on theother hand, generated in the last quarter, particularly fromChristmas sales. Of course, the number of shopping days and, forexample, the distribution of holidays over different quarters alsoimpacts the retail sales between quarters.Seasonal business fluctuations influence the Group's net sales andoperating profit, with the first quarter traditionally being clearlythe smallest.Significant risks and uncertainty factorsManagement of business risks and utilisation of the opportunitiesassociated with them is included in the daily responsibilities ofSanoma's management. The management takes calculated risks in orderto ensure that the Company develops its business as successfully aspossible.The most significant risks and uncertainty factors Sanoma is facingare described in the Financial Statements, together with the mainprinciples of risk management. The most significant uncertaintyfactors of the current year are related to the development of mediaadvertising and consumer spending. There is also uncertainty in thedevelopment of currency exchange rates. Due to the uncertain generaleconomic situation, reliable estimates on, for example, thedevelopment of media advertising in the Group's various markets arenot available. Sanoma expects media advertising to continue todecrease in 2009. A rapid change in media advertising and consumerconfidence would affect the Group result.Sanoma's relatively stable business and strong balance sheet, as wellas current loan agreements ensure the Group's financial position evenif the uncertainty in the financial markets continues.INTERIM REPORT (UNAUDITED)Accounting policiesThe Sanoma Group has prepared its Interim Report in accordance withIAS 34 'Interim Financial Reporting' while adhering to related IFRSstandards and interpretations applicable within the EU on 30September 2009.The Group has applied the following new or revised standards as of 1January 2009: IAS 1 'Presentation of Financial Statements' and IFRS 8'Operating Segments'. The adoption of IAS 1 'Presentation ofFinancial Statements' affected the terminology in the Interim Reportand the presentation of some financial statements. The adoption ofIFRS 8 had no material effect on Sanoma's Interim Report.Sanoma Learning & Literature has started to capitalise prepublicationcosts of learning material to intangible assets as of 1 January 2009.Previously, the principle was to include prepublication expenses inacquisition cost of inventory. The change in accounting policy doesnot have any material impact on Sanoma's income statement or balancesheet.The accounting policies of the Interim Report and the definitions ofkey indicators are presented on the Sanoma website at Sanoma.com. Allfigures have been rounded and consequently the sum of individualfigures can deviate from the presented sum figure. Key figures havebeen calculated using exact figures.CONSOLIDATED INCOME STATEMENTEUR million 1-9/ 1-9/ 1-12/ 2009 2008 2008NET SALES 2,034.4 2,231.4 3,030.1Other operating income 46.7 70.6 97.1Materials and services 906.3 994.8 1,367.4Employee benefit expenses 511.4 517.6 702.8Other operating expenses 379.4 414.4 588.8Depreciation and impairment losses 120.9 110.0 231.9OPERATING PROFIT 163.1 265.2 236.3Share of results in associated companies -2.3 5.0 4.9Financial income 19.6 12.7 18.9Financial expenses 41.3 42.5 69.9RESULT BEFORE TAXES 139.2 240.4 190.3Income taxes -40.6 -59.6 -69.4RESULT FOR THE PERIOD 98.5 180.7 120.8Result attributable to:Equity holders of the Parent Company 99.2 177.9 115.7Non-controlling interests -0.6 2.8 5.1Earnings per share for result attributable tothe equityholders of the Parent companyEarnings per share, EUR 0.62 1.10 0.72Diluted earnings per share, EUR 0.62 1.10 0.72STATEMENT OF COMPREHENSIVE INCOMEEUR million 1-9/ 1-9/ 1-12/ 2009 2008 2008Result for the period 98.5 180.7 120.8Other comprehensive income:Change in translation differences -8.7 8.7 -39.1TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 89.8 189.4 81.7Total comprehensive income attributable to:Equity holders of the Parent Company 90.6 186.4 77.5Non-controlling interests -0.8 3.1 4.2CONSOLIDATED BALANCE SHEETEUR million 30.9.2009 30.9.2008 31.12.2008ASSETSNON-CURRENT ASSETSTangible assets 490.7 510.9 510.4Investment property 9.4 10.0 10.2Goodwill 1,494.2 1,567.6 1,491.6Other intangible assets 402.3 400.3 379.7Interests in associated companies 65.4 70.9 69.9Available-for-sale financial assets 16.0 20.9 20.6Deferred tax receivables 40.5 46.4 36.6Trade and other receivables 38.5 38.9 41.0NON-CURRENT ASSETS, TOTAL 2,557.0 2,665.9 2,560.0CURRENT ASSETSInventories 150.5 180.1 173.2Income tax receivables 15.6 45.2 24.9Trade and other receivables 396.0 452.2 409.1Available-for-sale financial assets 0.5 0.5 0.5Cash and cash equivalents 66.4 305.1 110.9CURRENT ASSETS, TOTAL 629.1 983.2 718.7ASSETS, TOTAL 3,186.0 3,649.1 3,278.7EQUITY AND LIABILITIESEQUITYEquity attributable to the equity holders of the Parent CompanyShare capital 71.3 71.3 71.3Treasury shares -37.5 -37.5Fund for invested unrestricted equity 176.6 187.8 192.7Other equity 920.5 1,103.3 993.7 1,168.3 1,324.9 1,220.1Non-controlling interests 13.3 21.4 17.0EQUITY, TOTAL 1,181.7 1,346.2 1,237.1NON-CURRENT LIABILITIESDeferred tax liabilities 102.8 110.3 106.2Pension obligations 36.3 42.7 37.9Provisions 6.9 7.3 6.0Interest-bearing liabilities 640.3 613.0 449.0Trade and other payables 32.8 34.9 34.6CURRENT LIABILITIESProvisions 19.5 12.2 10.9Interest-bearing liabilities 493.1 713.7 633.6Income tax liabilities 21.8 45.6 11.7Trade and other payables 650.8 723.2 751.7LIABILITIES, TOTAL 2,004.4 2,302.9 2,041.6EQUITY AND LIABILITIES, TOTAL 3,186.0 3,649.1 3,278.7CHANGES IN CONSOLIDATED EQUITYEUR million Equity attributable to the equity holders of the Parent Company Fund for inves- Non- ted cont- Share unre- rol- Share pre- Trea- stric- ling Equi- capi- mium sury ted Other inte- ty, tal fund shares equity equity Total rests totalEquity at1 Jan 2008 71.3 187.6 -51.6 1,138.6 1,345.9 18.3 1,364.2Unregisteredusage ofshare -0.1 -2.4 0.1 -2.4 -2.4optionsAcquisitionof treasury shares -47.6 -47.6 -47.6Cancellationof treasury shares 61.6 -61.6Registration ofnew shares 0.1 2.4 0.1 2.7 2.7Expenserecognition ofoptions granted 3.9 3.9 3.9Dividends paid -160.8 -160.8 -3.0 -163.9Change in non-controllinginterests -3.1 -3.1 3.0 -0.1Transfer ofpremium fund -187.6 187.6Comprehensiveincome for the period 186.4 186.4 3.1 189.4Equity at30 Sept 2008 71.3 -37.5 187.8 1,103.3 1,324.9 21.4 1,346.2Equity at1 Jan 2009 71.3 -37.5 192.7 993.7 1,220.1 17.0 1,237.1Unregisteredusage ofshare options -1.8 -1.8 -1.8Cancellationof treasury shares 37.5 -37.5Registration ofnew shares 1.8 1.8 1.8Expenserecognition ofoptions granted 3.0 3.0 3.0Dividends paid -144.9 -144.9 -0.9 -145.8Change in non-controllinginterests -2.0 -2.0Donations -0.5 -0.5 -0.5Transferfromfund -16.1 16.1Comprehensiveincome for the period 90.6 90.6 -0.8 89.8Equity at30 Sept 2009 71.3 176.6 920.5 1,168.3 13.3 1,181.7INCOME STATEMENT BY QUARTEREUR million 1-3/ 4-6/ 7-9/ 1-3/ 4-6/ 7-9/ 10-12/ 1-12/ 2009 2009 2009 2008 2008 2008 2008 2008NET SALES 636.0 697.2 701.1 683.1 769.8 778.6 798.7 3,030.1Other operating 14.1 19.4 13.3 38.1 17.7 14.8 26.5 97.1incomeMaterials and 286.4 304.8 315.0 309.4 333.4 352.0 372.6 1,367.4servicesEmployee benefit 176.2 174.8 160.5 172.2 177.5 167.8 185.2 702.8expensesOther operating 128.2 129.0 122.1 131.1 141.5 141.9 174.3 588.8expensesDepreciation and 38.4 42.8 39.8 35.8 36.6 37.7 121.9 231.9impairmentlossesOPERATING PROFIT 20.9 65.1 77.1 72.7 98.5 94.0 -28.8 236.3Share of results 0.3 -0.6 -2.0 3.0 1.6 0.4 -0.1 4.9in associatedcompaniesFinancial income 6.7 8.8 4.1 3.5 3.1 6.1 6.2 18.9Financial 17.0 12.3 12.0 12.7 14.5 15.3 27.4 69.9expensesRESULT BEFORE 10.9 61.1 67.2 66.5 88.7 85.2 -50.1 190.3TAXESIncome taxes -3.2 -17.4 -20.0 -12.2 -23.4 -24.1 -9.8 -69.4RESULT FOR THE 7.7 43.7 47.2 54.4 65.3
Datum: 06.11.2009 - 07:01 Uhr
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