Page 1

2008 Annual Report


Contents Board of Directors’ Report

1–5

Income Statements

6

Cash Flow Statements

6

Balance Sheets at December 31

7

Change in Shareholders’ Equity

8

Notes to the Financial Statements

9–31

Audit report

32

10-year Summary

33

Annual Report for fiscal year January 1 – December 31, 2008 The Board of Directors and the President of Bonnier AB, corporate registration number 556508-3663, herewith submit the following Annual Report and Consolidated Financial Statements, pages 1–31, including the Board of Directors’ Report with the Proposed Disposition of Unappropriated Earnings, Income Statements, Balance Sheets, Cash-Flow Statements, Change in Shareholders’ Equity and Notes to the Financial Statements.


Board of Directors’ Report A strong year with a weak close • Group sales rose by SEK 390 M t0 SEK 29,597 M. Growth occurred within the Bonnier Broadcasting and Bonnier Magazine Group business areas. • Operating profit before items affecting comparability and goodwill amortization amounted to SEK 2,645 M (2,901), a decrease of SEK 256 M. The operating margin declined one percentage point to 8.9 (9.9) percent. • Group earnings after net financial items amounted to SEK 1,533 M (2,425). Corresponding earnings in the preceding year included capital gains totaling SEK 445 M, which amounted to only SEK 17 M in 2008. Goodwill amortization and other write-offs and depreciation related to acquisitions totaled SEK 637 M (561). • Profit for the year after tax and minority interests amounted to SEK 1,052 M (1,542). • EBITA (operating profit before capital gains/losses, before share of profit/loss in associated companies and before goodwill and other write-downs and depreciation related to acquisitions) amounted to SEK 2,414 M (2,845). Bonnier Broadcasting reported significantly improved earnings. Bonnier Evening Paper also posted ­higher earnings. Bonnier Entertainment’s profit was largely unchanged compared with the preceding year, while the Group’s other business areas reported lower earnings. For Bonnier Books, the decline was due to exceptionally strong results in 2007, when the last book in the Harry Potter series was published in Germany. The other business areas were impacted by a decline in the advertising market during the last few months of the year. • Through its subsidiary TV4 AB, Bonnier acquired C More toward year-end.

Group overview Earnings SEK M Net sales EBITA Operating profit1) Net financial items Profit after net financial items1) Profit for the year 1) Of

which, items affecting comparability

2008 29,597 2,414 1,816 –283 1,533 1,052 –189

2007 29,207 2,845 2,710 –285 2,425 1,542  370

• Sales rose by 1 percent to SEK 29,597 M (29,207). • Profit after net financial items was SEK 1,533 M (2,425). Adjusted for capital gains, profit was SEK 1,516 M (1,980). Profit after tax and minority share was SEK 1,052 M (1,542). • Rate of return on operating capital1) was 13 percent (23) and on shareholders’ equity1) 15 percent (25). • Net debt at year’s end was SEK 8,690 M (6,691). • Shareholders’ equity including minority interests amounted to SEK 8,162 (6,844) M, an increase of SEK 1,318 M in 2008. • Gearing Ratio (Net Debt/Shareholders’ equity including minority interests) amounted to 1.06 (0.98). Ownership. Bonnier AB is a wholly-owned subsidiary of Bonnier Holding AB, a subsidiary of Albert Bonnier AB, which, in turn, is owned by more than 70 members of the Bonnier family. Address and corporate registration number. The Bonnier AB Group’s Parent Company is Bonnier AB, whose corporate registration number is 556508-3663. The Head Office is located on Kungsgatan 49 and its postal address is SE-113 90 Stockholm, Sweden. The Internet address is www.bonnier.com. Business areas. The Group conducts operations in the media sphere, including books, daily newspapers, magazines, printed and electronic business information, music, cinemas, film and TV production, commercial local radio and Internet products. Operations are conducted in more than 20 countries. Important external factors affecting group earnings. The most important external factors that affect the Group’s earnings are business conditions in Sweden, household consumption, advertising investment and consumer expectations. These factors are also important for Group earnings in other Nordic countries, as well as 1) For

in Eastern Europe, Germany, the US and other markets where the Group operates, along with the competitive situation in key markets. Extensive changes are occurring in the media sphere as a result of rapid developments in the IT sector and the Internet. The significant risk and uncertainty factors for the Group are dependent on how these external factors develop in the future. Business areas Net sales by business area SEK M Bonnier Books Bonnier Magazine Group Bonnier Broadcasting Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Bonnier Evening Paper Other Total

2008 5,917 6,202 6,038 3,969 2,494 3,678 1,666 –367 29,597

2007 6,314 6,031 5,336 4,019 2,526 3,787 1,642 –448  29,207

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

2008 568 466 1,229 251 194 –161 145 –278 2,414

2007 678 699 1,024 252 337 38 135 –318  2,845

Change 2008/2007, % –6.3 2.8 13.2 –1.2 –1.3 –2.9 1.5 1.3 Change 2008/2007, % –16.2 –33.3 20.0 –0.4 –42.4 7.4 –15.1

Bonnier Books includes book publishers and book clubs in several countries. The Swedish Bonnierförlagen includes among others ­Albert Bonniers Förlag and Wahlström & Widstrand. In Sweden there is also Semic International, in Finland Tammi and in Norway Cappelen Damm (50%). Through Bonnier Media, Bonnier is the leading publisher of children’s books in Germany and there it also has an extensive publishing of fiction. The British book publisher Bonnier Publishing has subsidiaries in among other countries France, Australia and the US. Moreover it includes the largest ­on-line book retailer in the Nordic region, AdLibris. Sales decreased by 6 percent. EBITA was SEK 568 M (678). Most of the decline was attributable to Bonnier Germany, but this was due to exceptionally strong sales in 2007, when the Harry Potter books were published in Germany. Markets in the US and Australia were weak.

definition see Note 39 in the Annual Report.

bonnier ab annual report

2008

1


Board of Directors’ Report

Cappelen Damm, the jointly owned business operations in Norway, had a strong year. In Sweden, 2008 was characterized by stable sales and a major reorganization. The new Bonnierförlagen was established through a merger of Bonnierförlagen, Semic and AdLibris to create a single business unit. Acquisitions during the year included Templar, a well-known children’s book company in the UK that has published the highly successful ”Ology” books, which have sold more than 15 million copies worldwide.

later in 2008, and the daily newspapers in these three countries reported earnings in line with earnings during 2007. For the DI-Group in Sweden, 2008 was a tougher year than anticipated, although earnings remained at a very high level. During the autumn, for example, di.se had more than one million unique visitors per week several times. In the Baltic countries, the autumn of 2008 was historically weak, as Estonia, Latvia and Lithuania were affected by serious financial crises that also impacted the media markets.

Bonnier Magazine Group comprises of three publishers of periodicals, Bonnier Publications with head offices in Copenhagen and Oslo, Bonnier Tidskrifter in Stockholm and Bonnier Corporation in the US. All in all, these publishing companies publish 170 titles in ten different countries. The business area is, in the first place, oriented towards consumer publications but has also a significant publication of business to business titles as well as free newspapers. Sales increased by 3 percent. EBITA was SEK 466 M (699). Although earnings in Sweden and Denmark did not reach the level achieved in the preceding year, both units reported strong results and maintained favorable rates of new launches. Bonnier Publications in Copenhagen entered the Russian market through the acquisition of a special newspaper publishing company in Moscow. In a tough and slightly weaker American market, Bonnier Corporation continued to strengthen its positions in priority market segments, partly through the acquisition of Working Mother and Scuba Diver, and now has slightly more than 80 million readers monthly.

Bonnier Morning Papers publishes daily newspapers in Sweden. The Swedish newspaper operations comprise the large city morning newspapers Dagens Nyheter (Stockholm) and Sydsvenskan (Malmö), the cost-free news­paper Stockholm City as well as the ­regional newspapers within Skånemedia with Ystads Allehanda, Trelleborgs Allehanda and Kristianstadsbladet. This business area also ­includes the Swedish daily press printing operations in Bold Printing Group and Premo (50%). The sales declined 3 percent. EBITA amounted to a loss of SEK 161 M (profit: 38). Several consolidation measures were taken within the business area during the year. Sydsvenska Dagbladet and Skånemedia were merged, and a number of programs designed to improve earnings were introduced, resulting in very substantial initial costs. Stockholm City also underwent a major transformation and is now published three days a week. After many years of modest declines in circulation, Dagens Nyheter reversed this trend during 2008, and the newspaper has increased its percentage of subscribers every month since June 2008.

Bonnier Broadcasting covers TV and radio. This business area includes TV4 AB, with its newly acquired C More Group AB and MTV Media Oy in Finland. Sales rose by 13 percent. The acquisition of C More during the year accounted for slightly more than one-third of the increase. The operating profit rose to a record-high level, totaling SEK 1,229 M (1,024). TV4 and MTV3 continued their highly successful concentration on niche channels, with the extremely strong parent channels as the driving force. In December, TV4 acquired C More (pay-TV channels in the Nordic region under the Canal Plus brand), which was Bonnier AB’s largest acquisition during the year. Bonnier Entertainment covers mainly film and music. This busi-

ness area includes Svensk Filmindustri (SF) with activities in all the Nordic countries as well as SF Bio with cinemas in Sweden and Norway. Homeenter sells film and music throughout the Nordic region and Bonnier Amigo Music Group produces music in the Nordic countries. Bonnier Gaming operates and markets gaming concepts on the Internet and Expericard offers the market a way of packaging and distributing CDs and DVDs as well as developing new business concepts for the retail sector. Sales declined by 1 percent. EBITA was SEK 251 M (252). SF and SF Bio had a highly successful year. Arn was a box-office hit and nearly 2 million people saw the movie Mamma mia! Homeenter, the membership club that sells music and film, reported its best year ever.

Bonnier Evening Paper publishes the evening newspapers Expres-

sen, GT and Kvällsposten. Sales increased 1 percent. EBITA was SEK 145 M (135), the second highest level of earnings ever achieved, while profit for the year was charged with substantial structural and closure expenses. Other includes, above all, joint Group operations including the Parent Company.

Acquisitions and divestments. Acquisitions were carried out to a value of SEK 3,490 M1). Divestments amounted to SEK 630 M with a total capital gain of SEK 17 M (445). The most significant of these were: • In December, TV4 acquired C More (pay-TV channels in the Nordic region under the Canal Plus brand). The acquired operations have annual sales of approximately SEK 2,400 M. • In the autumn, Bonnier Publishing (English-language book operations) acquired Templar, a highly reputable children’s book company in the UK that has published the successful ”Ology” books, which have sold more than 15 million copies worldwide. The operations have annual sales of about SEK 200 M. • Bonnier Publications in Copenhagen entered the Russian market through its acquisition of a special newspaper company in Moscow. The acquired operations have annual sales of about SEK 80 M. • MTV Media sold the building in which its operations are based at the beginning of the year.

Bonnier Business Press publishes mainly daily business news-

papers. In addition to Dagens Industri in Sweden and Børsen in Denmark it publishes Äripäev in Estonia, Dienas Bizness in Latvia, Verslo Žinios in Lithuania, Delovoj Peterburg in Russia, Puls Biznesu in Poland, Finance in Slovenia, Pari (50%) in Bulgaria and business.hr in Croatia. The Russian weekly Delovaja Gazeta Yug is published in Krasnodar in Russia. The business area includes the Internet sites dp.ru in Moscow, rynok.biz in the Ukraine and cv.lt in Lithuania. Medicine Today International has been included in the business area since 2007. Diena, a Latvian daily newspaper, is now also included in the business area following its structural transfer from the Group’s daily newspaper operations. Sales were down 1 percent compared with the preceding year. EBITA amounted to SEK 194 M (337). A strong first half of the year in Denmark, Russia and Slovenia compensated for the slowdown

Geographical distribution Net sales by geographical market SEK M Sweden Finland Denmark Norway United States Germany Other markets Total

1) The 

2

2008 15,519 3,673 2,330 2,301 2,237 1,601 1,936 29,597

2007 15,479 3,293 2,455 2,208 2,067 1,823 1,882  29,207

Change, % 0.3 11.5 –5.1 4.2 8.2 –12.2 2.9 1.3

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

bonnier ab annual report

2008


Board of Directors’ Report

The foreign share of sales rose by 0.6 percentage points to 47.6%. Finland accounted for the largest increase with a rise of SEK 380 M followed by The US with SEK 170 M. Investments and net debt Change in net debt, condensed SEK M Funds generated internally Change in working capital Net investments in operations Free cash flow Net acquisitions and divestments of operations, shareholdings and participations Cash flow after acquisitions and divestments Group contributions, dividends etc. Translation difference Free cash flow

2008 4,114 143 4,257 –2,794 1,463

2007 3,866 –880 2,986 –2,064 922

–2,860 –1,397 –348 –254 –1,999

–8,900 –7,978 –377 –16 –8,371

The Parent Company’s investments amounted to SEK 2,206 M (5,007), of which tangible fixed assets accounted for SEK 7 M (2) and investments in shares and participations for SEK 2,199 M (5,005). The Parent Company’s liquid funds amounted to SEK 0 M (0) at year-end. Net debt increased during the year by SEK 1,999 M, whereas in 2007 it increased by SEK 8,371 M. This difference is mainly explained by the fact that large acquisitions were carried out during 2007. Free cash flow in relation to sales increased by 1.7 percentage points to 4.9 (3.2) percent.

Capital structure Operating capital SEK M Tangible and intangible fixed assets, excl. goodwill Working capital Other financial assets Goodwill Operating capital Net debt Shareholders’ equity and minority interests Financing of operating capital Net debt/shareholders’ equity1), multiple 1) Including

Dec. 31 2008 4,792 90 182 11,788 16,852

Dec. 31 2007 4,563 331 173 8,468  13,535

8,690 8,162 16,852

6,691 6,844  13,535

1.06

0.98 

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

Net debt/equity ratio1) was 1.06 (0.98). The equity/assets ratio1) declined marginally to 30.1 (31.0) percent. Substantial fluctuations in currency exchange rates during the year impacted most balance sheet items. The relatively comprehensive acquisition activities during the year also contributed to higher levels of net debt and goodwill. Research and development. The Group’s research and development operations are primarily conducted by the concerned business areas. Bonnier Media University and Research & Development are at the central Group level. Environmental impact. The Group’s two subsidiaries, DNEX ­Tryckeriet AB and Sydsvenskan Tryck AB, carry on activities that require a permit in accordance with the Swedish Environmental Code. Operations mainly impact on the external environment through emissions to air on the handling of cleaning agents and discharges of rinsing water to drains in the production of images and page production. 1) For

Corporate Social Responsibility. The Group has operations in more than 150 companies in over 20 countries. All business areas shall carry on an active environmental effort. The business area managers have the responsibility for the environmental work within the respective business area, while the President for each company within the group determines the scope and forms of the environmental inputs in accordance with Bonnier AB’s environmental policy. The ambition is to produce products and services with the aid of processes and methods that generate minimal environmental impact. Bonnier AB’s CSR Council is a platform for the interchange of experiences and co-operation and pushes forward the environmental work as well as preparing policy proposals on important issues. All business areas are represented and the CSR Council, each year, draws up a report on the work within the Group that is presented to the ­Parent Company’s President and Board of Directors. Personnel and personnel policy. The average number of employees amounted to 12,162 (11,868), an increase of 294. In the Parent Company the average number was 39 employees (34). Bonnier AB particularly values talent, entrepreneurship, professionalism and integrity and strives to do what is right, and to be the best at doing it. The work environment is sensitive to change and decision-making paths are short. Bonnier AB attracts and develops the best employees in the industry, offering them good personal development and career opportunities in a work environment characterized by creativity, success, job satisfaction, an atmosphere of openness and tolerance. Ideas flow. Work locations shall be friendly, with respect consideration for each other. In 2008, more than 250 employees actively saved an amount of their salary each month in a skills insurance program while the company contributed a corresponding amount. Started in 2000, the program continues in 2009. These funds can be used for payment of wages and salaries during future training/education programs. In consultation with their particular managers, many employees financed their training and skills development by this means during the year. In addition, Bonnier AB conducts its own educational program, Bonnier Media University, which focuses on leadership development, seminar activities and provides individual companies within the Group with training and educational support. During 2008, 1,062 employees participated in such programs. Social responsibility. Bonnier AB creates work opportunities and contributes to development within the community. Providing meaningful jobs to our employees, and providing culture, news, information, knowledge, analysis and entertainment to the general public, the business community and the advertising market, is a major responsibility. Bonnier AB welcomes the increasing demands made on companies by consumers in regard to ethics and responsibility. The Group strives to ensure that products and services procured externally are manufactured under reasonable work conditions and it places demands on suppliers and partners. Child labour, discrimination, deficiencies in regard to health and safety, and indentured servitude are examples of unacceptable conditions that Bonnier AB does not accept and strives to avoid through this policy and the demands placed on suppliers. Financial policy. Management of foreign exchange transactions is determined by the Group’s financial policy. Long-term holdings in subsidiaries are not hedged since this is considered to be advantageous for the long-term risk diversification and it also avoids a short-term negative impact on liquidity. In addition to some local financing in the currency used by the subsidiary concerned, financial transactions are confined to the Parent Company and its financing company. Group companies work in local currencies and primarily

definition see Note 39 in the Annual Report.

bonnier ab annual report

2008

3


Board of Directors’ Report

in their own markets. As a result, major currency risks are uncommon, and are normally hedged. The Group’s financial policy regulates the interest-rate risk. Interest-rate risk is the risk that changes in the market interest rate will affect the Group’s net of interest income and expense adversely. The fixed-interest term of the loan determines how rapidly the change in rate impacts the net interest income and expense. The standard is that the average fixed-interest period of net debt (excluding pension liabilities) should be 12 ± four months. Board activities during the year. The Board of Directors of Bonnier AB consists of 9 members elected by the shareholder, and three members and three deputy members appointed by trade union organizations. The company’s Chief Financial Officer attended meetings on a regular basis, and other senior executives attended in a reporting capacity. The Board held six meetings during the year at which minutes were taken. In addition to decisions taken, the minutes also indicate the basis for decisions and provide an account of discussions. The meetings follow an agenda distributed prior to meetings, and the Board receives full documentation of the issues to be discussed in advance. The Board’s operations comply with procedural instructions. A salary committee determines salaries, incentive programs and other conditions of employment for the President. Parent Company. The Parent Company includes primarily Groupwide functions. Net sales and profit/loss SEK M Net sales Of which, invoicing to other Group companies Profit/loss before appropriations and tax

2008 33 27 2,231

2007 30 16 627 

Outlook for 2009. Profit for 2009 is expected to be lower than 2008.

Summary of earnings and financial position Condensed income statement SEK M Net sales Advertising tax Other operating revenues Operating costs1) Amortization and write-downs of goodwill Depreciation and write-downs Share of profit/loss in associated companies Operating profit2) Result from financial investments Profit after financial items Tax expense for the year Minority share of profit/loss for the year Profit for the year 1) Of

which, personnel costs, see also Note 9

2) Of

which, items affecting comparability

Condensed balance sheet SEK M Goodwill Other intangible fixed assets Tangible fixed assets Interest-bearing long-term receivables Other financial assets Deferred tax receivables Inventories Accounts receivable – trade Other current assets Interest-bearing current receivables1) Short-term investments, cash and bank balances Total assets Shareholders’ equity Minority interests Interest-bearing provisions and liabilities1) Restructuring reserve Accounts payable – trade Subscription liabilities and other advances from customers Other noninterest-bearing provisions and liabilities Total shareholders’ equity and liabilities 1) Including 

4

2008 29,597 –58 171 –24,796 –634 –2,486 22 1,816 –283 1,533 –460 –21 1,052

2007 29,207 –65 555 –24,449 –557 –1,962 –19  2,710 –285  2,425 –836 –47  1,542

–7,147

–6,749

–189

370

Dec. 31 2008 11,788 2,098 2,694 45 187 820 1,698 3,976 3,097 510 165 27,078

Dec. 31 2007 8,475 1,473 3,090 29 174 433 1,512 4,127 2,124 277 342  22,056

7,990 171 9,167 243 2,806

6,659 185 7,158 181 2,288

1,542 5,159 27,078

1,366 4,219  22,056

accrued and prepaid interest income and expenses.

bonnier ab annual report

2008


Board of Directors’ Report

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

2008 6,659

2007 5,328

Dividend Translation difference Shareholders’ contribution Group contributions granted Tax on Group contributions granted Total direct charges to shareholders’ equity

–278 623 –91 25 279

–428 39 200 –30 8  –211

Profit for the year Shareholders’ equity, closing balance

1,052 7,990

1,542  6,659

2008

2007

1,013 3,367 143 4,523

1,809 2,208 –880  3,137

–2,794

–2,064

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

–2,860

–8,900 

Cash flow from investing activities

–5,654

–10,964

Cash flow after investing activities

–1,131

–7,827 

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

–348 1,497 1,149

–377 8,214  7,837

Cash flow for the year

18

10 

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

342 18 –195 165

384 10 –52  342

bonnier ab annual report

2008

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

The following earnings are at the disposal of the Annual Meeting:

Retained earnings Earnings in 2008

SEK 11,289,344,068 1,900,298,995 13,189,643,063

The Board of Directors and the President propose that these funds be disposed of as follows: Dividend to the shareholder of SEK 39.20 per share, total To be carried forward to new account

235,200,000 12,954,443,063 13,189,643,063

Board’s statement regarding the proposed dividend Before the proposed dividend, the Bonnier AB Group’s nonrestricted shareholders’ equity amounts to SEK 6,771 M and after the dividend to SEK 6,536 M. The equity/assets ratio before the dividend was 30.1 percent and is reduced, if the proposed dividend is implemented, by 0.6 percentage points to 29.5 percent. This equity/ assets ratio is satisfactory against the background that the Group’s operations continue to be carried out profitably. The Parent Company’s non-restricted shareholders’ equity was SEK 13,190 M before the proposed dividend and after the dividend SEK 12,954 M. The equity/assets ratio before the dividend was 66.8 percent and is reduced with the proposed dividend with 0.4 percentage point to 66.4 percent. The Group reports a net debt of SEK 8,690 M. Liquidity is satisfactory. It is the Board’s opinion that the proposal for disposition of unappropriated earnings does not hinder the companies included in the Group from meeting their obligations in the short and long term nor from completing necessary investments. Accordingly, the proposal for disposition of unappropriated earnings is consistent with the requirements placed by the form, scope and size of the operations on shareholders’ equity and take into account the company’s consolidation needs, liquidity and financial position in general. The dividend can be justified in relation to the Swedish Companies Act’s prudence principle in Chap. 17, Section 3, Para. 2–3. The dividend will be paid on May 15, 2009. In the prepared annual report no Group contribution was made to the Parent Company Bonnier Holding AB.

5


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

Note 2, 3 9

6, 7, 9 4, 5, 9 8

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

9, 10

Operating profit/loss

2, 9

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

9, 11 11 9, 12 13 13

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

14 15

Group 2008 2007 29,597.0 29,207.5 –58.3 –64.6 170.9 554.7  29,709.6 29,697.6

Parent Company 2008 2007 33.2 30.3

33.2

  30.3

–131.4 –83.1

–119.0 –72.8

–3,819.7 –5,535.9 –8,146.6 –7,147.1

–2,468.1 –6,330.6 –8,868.8 –6,748.9

–3,119.5 –146,9

–2,518.8 –32.7 

–2.6

–1.2  

–27,915.7 –26,967.9

–217.1

–193.0

21,7

–19.3

1,815.6

2,710.4

–183.9

–162.7

724.6

0.9 52.9 –336.8 –283.0

12.1 79.6 –377.4  –285.7

2,411.8 –5.0 178.5 6.8 –177.6 2,414.5

287.1 0.7 –222.5  789.9

1.532.6

2,424.7

2,230.6

627.2

–460.2 –20.3 1,052.1

–836.3 –46.7  1,541.7

–177.6 –152.7

–7.7   619.5

1,900.3

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

Note

Group 2008 2007

Parent Company 2008 2007

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

1,532.6 3,367.3 4,899.9 –519.9 4,380.0

2,424.7 2,208.2  4,632.9 –616.0  4,016.9

2,230.6 –917.4 1,313.2 –8.4 1,304.8

627.2 2,720.5  3,347.7 –52.1  3,295.6

Change in working capital Cash flow from operating activities

143.0 4,523.0

–880.0  3,136.9

14.8 1,319.6

–3.8  3,291.8

–2,860.0 –2,794.0

–8,900.0 –2,064.0

–1,376.4 –6.7 –154.4 60.2 –1,477.3

–3,215.6 –2.4 –835.1 435.8  –3,617.3

1,074.0 –616.3 –300.0 157.7

3,245.3 –2,557.5 66.0 –428.3  325.5

0.0 0.0

0.0 0.0

0.0

  0.0

Investing activities Acquisition and divestment of operations Acquisition and divestment of fixed assets New lending Amortization received Cash flow from investing activities

16

  –5,654.0 –10,964.0

Financing activities New borrowing/receivables repaid, net Liabilities and receivables via acquisitions and divestments New borrowing, etc. Amortization of debt Shareholders’ and Group contributions Dividend paid Cash flow from financing activities

–204.5 244.0 1,894.6 –436.9 –30.3 –317.7 1,149.2

856.8 7,015.3 341.9

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

18.2 341.9 1.0 –196.3 164.8

9.9 383.8 –5.3 –46.5  341.9

6

95.9 –472.9  7,837.0

bonnier ab annual report

2008


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

Note

Tangible fixed assets Buildings and land Plant and machinery Equipment, tools, fixtures and fittings Construction in progress and advance payments for tangible fixed assets Financial fixed assets Participations in subsidiaries Participations in associated companies Other securities held as fixed assets Interest-bearing receivables Noninterest-bearing receivables

Group 2008 2007

Parent Company 2008 2007

17, 29

13,886.6

9,948.3

18, 30 18, 30 30, 31

840.6 862.5 824.8

1,429.1 910.1 696.0

9.3

5.2

165.9 2,693.8

54.6  3,089.8

9.3

5.2

100.1 73.8 29.4 432.8  636.1

16,326.2 3.5

15,148.3

124.9 62.5 44.9 820.2 1,052.5

2,881.5 29.7 19,240.9

2,598.8 33.8  17,780.9

17,632.9

13,674.2

19,250.2

17,786.1

123.0 1,158.6 1,281.6

81.3 191.9  273.2

19

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

Total fixed assets Current assets Inventories, etc.

21

1,698.4

1,511.8

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

22 22, 23

499.4 7,083.0 7,582.4

275.3 6,252.9  6,528.2

7.7 157.1

11.3 330.6

9,445.6 27,078.5

8,381.9  22,056.1

1,281.6 20,531.8

273.2  18,059.3

300.0

300.0

300.0 91.8

300.0 91.8

919.3

554.2 391.8

391.8

5,718.8

4,263.0

1,052.1

1,541.7

7,990.2

6,658.9

11,289.3 1,900.3 13,189.6 13,581.4

10,948.2 619.5  11,567.7 11,959.5

177.9

0.3

171.3

185.3

2,098.0 577.4 2,675.4

1,847.2 658.2  2,505.4

145.5

149.5

145.5

149.5

4,866.4 26.7 4,893.1

4,175.4 11.0  4,186.4

2,281.9

1,450.0

2,281.9

1,450.0

2,360.1 8,988.4 11,348.5 27,078.5

1,253.4 7,266.7  8,520.1  22,056.1

4,009.1 336.0 4,345.1 20,531.8

4,344.5 155.5  4,500.0  18,059.3

2,248.6 1,087.0

1,894.9 709.0

940.3

624.2

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

24, 34, 37, 38 24, 34

25, 26, 37 25

27 27, 28

37 38

1) All

shares are paid in full, and the number remained unchanged during 2007 and 2008. Series A shares carry one vote and Series C shares carry 10 votes. The shares quota value is 50.

bonnier ab annual report

2008

7


Change in Shareholders’ Equity

SEK M Opening balance, Jan. 1, 2007 Appropriation of profit Dividend Translation difference Shareholders’ contribution Group contributions granted Tax on Group contributions granted Transfer between restricted and non-restricted reserves Profit for the year Opening balance, Jan. 1, 2008 Appropriation of profit Dividend Translation difference Group contributions granted Tax on Group contributions granted Transfer between restricted and non-restricted reserves Profit for the year Closing balance, Dec. 31, 2008

SEK M Opening balance, Jan. 1, 2007 Appropriation of profit/loss Dividend Shareholders’ contribution Group contributions, net Tax on Group contributions Profit for the year Opening balance, Jan. 1, 2008 Appropriation of profit/loss Dividend Profit for the year Closing balance, Dec. 31, 2008

8

Share capital 300.0

Restricted reserves 223.3

330.9

300.0

300.0

Share capital 300.0

300.0

300.0

554.2

Group Nonrestricted reserves 3,856.0 948.3 –428.3 39.5 200.0 –30.0 8.4 –330.9

365.1

4,263.0 1,541.7 –278.4 623.0 –91.0 25.5 –365.1

919.3

5,718.7

Profit/loss for the year 948.3 –948.3

–428.3 39.5 200.0 –30.0 8.4 1,541.7

1,541.7

1,541.7 –1,541.7

6,658.9 –278.4 623.0 –91.0 25.5

1,052.1 1,052.1

Parent Company Profit/loss brought Statutory Profit/loss reserve forward for the year 91.8 9,776.3 1,421.8 1,421.8 –1,421.8 –428.3 200.0 –30.0 8.4 619.5 91.8

91.8

10,948.2 619.5 –278,4 11,289.3

Total 5,327.6

619.5 –619.5 1,900.3 1,900.3

1,052.1 7,990.1

Total 11,589.9 –428.3 200.0 –30.0 8.4 619.5 11,959.5 –278,4 1,900.3 13,581.4

bonnier ab annual report

2008


Notes to the Financial Statements Note 1 Principles of accounting and valuation The annual report is prepared in accordance with the Annual ­Accounts Act and general recommendations of the Swedish Account­ ing Standards Board. Bonnier AB is not a listed company and thus does not report according to International Financial Reporting Standards, IFRS. However, Bonnier AB complies with the former Swedish Financial Accounting Standards Councils recommendations (RR) and statements (URA) to the extent that these are applicable to non-listed companies according to the Swedish Accounting Standards Board. The group’s valuation principles agree with these recommendations whereas Bonnier AB deviates from certain of the requirements for information. The income statement employs classification of items by type of cost. This form of presentation conforms more closely with the Group’s internal control systems than allocation by functions. The Bonnier AB Group was formed as of January 1, 1999 when AB Bonnierföretagen combined all media operations in a single subGroup. Shares in media subsidiaries were acquired by Bonnier AB at AB Bonnierföretagen’s acquisition values for tax purposes. In the consolidated accounts, net assets in these companies are reported at the Bonnier Holding’s Group value after the merger of AB Bonnier­ företagen and Bonnier Holding AB. The Swedish Financial Account­ ing Standards Council’s Recommendation RR 1:96 was not applied in connection with the establishment of this sub-Group, since the transactions were not made between independent parties. Reporting complied with a statement by the Swedish Financial Accounting ­Standards Council’s Emerging Issues Task Force on December 1997. The accounting principles for film and broadcasting rights were changed during the year. See also below. Consolidated accounts. The consolidated accounts include subsidiaries in which the Parent Company directly or indirectly has decisive influence. The consolidated financial statements have been prepared in accordance with the purchase method (see above, however), whereby the equity in subsidiaries at the date of acquisition – established as the difference between the actual values of the assets and liabilities – is eliminated in its entirety. Accordingly, Group equity only includes the proportion of subsidiaries’ equity arising after the date of acquisition. When the Group’s acquisition value for shares is higher than the value shown in the acquisition analysis of the subsidiary’s net assets, the ­difference is reported as Group goodwill. The accounts of foreign subsidiaries are translated into SEK in accordance with the current-rate method, whereby all balance sheet items are translated at year-end exchange rates, while the income statements are translated at the average rate for the year. The resulting translation difference is credited/charged directly to restricted and non-restricted reserves in accordance with the Swedish Financial ­Accounting Standards Council’s recommendation. Income of companies acquired during the year is consolidated for the period after the date of acquisition. Income of companies sold during the year is included in the consolidated accounts up until the date of sale. Internal profits within the Group are eliminated in their entirety, with­out taking minority interests into account. Minority participation in profit/loss for the year is reported in the consolidated income statement. Minority participation in the equity of subsidiaries is reported in a separate item in the consolidated balance sheet. Accounting for associated companies. Companies which are not subsidiaries, but in which the Parent Company has a significant influence and in which the Parent Company directly or indirectly holds at least 20 percent of the voting rights for all participations are regarded as associated companies. See Note 10. Associated companies are reported in the consolidated accounts by applying the equity method in accordance with RR 13. In the equity method, consolidation primarily takes the form of separate lines in the consolidated income statement and consolidated balance sheet. In the income statement, the Group’s share of

bonnier ab annual report

2008

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

5–20 percent 1–5 percent

Plant and machinery

5–33 percent

Equipment, tools, fixtures and fittings

5–33 percent

A 20 percent amortization is normally applied to intangible assets. On acquisition values of more than SEK 5 M a lower percentage rate may be used if special reasons justify this. The most important deviations from 20 percent amortization for intangible assets are as follows: Goodwill arising from the acquisition of Sydsvenska ­Dagbladets AB is amortized at 5 percent per year. This goodwill is attributable to the special value of the publishing licenses held by the newspapers acquired, and their strong positions in the local markets in Skåne. The same rate of amortization of goodwill was applied to the acquisition by Sydsvenska Dagbladets AB of the Allehanda Syd Group and its very strong local newspapers, Ystads Allehanda and Trelleborgs Allehanda. This also applied to the application of the equity method for the acquisition of Kristianstadsbladet AB and was justified by the strong position of the Kristianstadsbladet newspaper in its ­market. In 2002, operations were restructured and the three news­ papers formed Skånemedia AB. As a result of adjustment to the earlier time schedule, goodwill in this company is amortized over 18 years. A 5 percent goodwill amortization is applied to Nordic Broadcast­ing Oy. This is justified by the strong brands the company has on the Finnish commercial-TV market and the holding of TV4 AB with its strong position as Sweden’s leading channel. Amortization of 5 percent was applied to goodwill from the acquisition of C More Group AB and is justified by the company’s strong position on the pay-TV market in the Nordic region. A 5 percent goodwill amortization is applied to Bonnier Corporation (holding 80%) and is justified by the company’s strong position within special periodicals for sport, fishing, boats and science as well as leading titles for new parents and parents-to-be.

9


Notes to the Financial Statements

Note 1 cont. 5 percent amortization is applied to goodwill from the acquisition of Cappelen Damm Holding AS (ownership interest 50%) and is justified by the company’s strong position as one of Norway’s largest publishing groups with a broad market basis and high quality publication activities within all areas of literature. Amortization of 6.67 percent (15 years) is applied to AB Kvälls­ tidningen Expressen’s acquisition of GT, and is warranted by the strong position GT has in the local newspaper market in Gothenburg. Amortization of 10 percent is applied to the book publishers arsEdition GmbH, Ullstein Buchverlage GmbH and Thienemann Verlag GmbH in Germany, The Five Mile Press Pty Ltd. in ­Australia and the children’s book publisher The Templar Company Ltd. in UK due to the stability of operations and portfolio of strong book titles. 10 percent amortization is applied to Weldon Owen Publishing, Inc. in the US, which is justified by the company’s leading position in branded literature. Amortization of 10 percent is applied to Adlibris AB and is justified by the company’s strong position as the dominant Internet bookstore on the Swedish market. Amortization of 10 percent is also applied to Idé-Nyt A/S (60% holding), which is warranted by the fact that the newspaper is an established brand and market leader in coupon book distribution in Denmark. The same amortization rate is also applied to Forlaget ­Benjamin ApS as a result of the strong position that the company enjoys in the Danish magazine market. Amortization of 10 percent was applied to goodwill from the acquisition of the Russian specialty magazine publisher Bonnier Publications, OOO and is justified by the company’s strong position on the market. Amortization of 10 percent is applied to Suorayhtiöt Oy, which is justified by the company’s strong position in distribution of coupon books in Finland, among other areas. Amortization of 10 percent for Discshop Svenska Näthandel AB and the Finnish F-Film Club and F-Music Club is warranted by these operations’ considerable market shares in a growing market. Individual amortization is applied to acquired film and broadcasting rights depending on the conditions in each contract. The buildings and land at DNEX Tryckeriet’s Akalla printing complex and Sydsvenskan Tryck AB’s printing plant in Fosie are ­assumed to have a useful life of 40 years. The useful life of the buildings’ fittings and fixtures is estimated to be 15 years. A useful life of 20 years is assumed for the presses, and the life of other equipment is assumed to be 10 years. The useful life in each main category is an average, since each category contains equipment with both shorter and longer estimated useful life. The printing plants were originally designed to meet what was expected to be a growing demand – especially with respect to fourcolor and on-line insertion capacity – since this was deemed to be more rational than increasing capacity by stages. The depreciation plan recognized that utilization of capacity would rise gradually during the first 10 years after commencement of production in 1993 at Akalla and in 1994 at Fosie. This would result in a better correlation between costs and revenues. In connection with the acquisition by Bonnier AB of the Akalla printing plant in 1998, the depreciation model was changed. The value assigned to Bonnier AB’s acquisition is subject to straight-line depreciation for the remain­der of the above depreciation period. The depreciation model in which depreciation is based on gradually increased capacity utilization continues to apply to the Fosie plant, however. Straightline depreciation is applied to newly acquired equipment with the abovementioned useful periods. “Month-by-month” depreciation is applied, whereby equipment purchased in January and depreciated over five years is depreciated at a rate of 20 percent in the first year, while assets purchased in December are depreciated by one twelfth of 20 percent.

10

The accounting principles for film and broadcasting rights were changed during the year. Film and broadcasting rights are now recognized under the heading Film rights. The costs for these are now reported under the heading Amortization/depreciation and write-downs of intangible and tangible assets. Previously, these were reported as Inventories and the costs under the heading Raw materials and supplies. The value in 2008 for these rights was SEK 1,719 M (914) and amortization amounted to SEK 1,788 M (1,456). The comparative figures for 2007 were adjusted to reflect the new accounting principles. Guaranteed royalties, reported as Prepaid expenses, are expensed following a case-by-case review, taking into account future estimated revenues. Royalty costs are included in Other external costs in the income statement. Intangible investments that are of significant value for the business in future years, and which are of a significant size, are capitalized and amortized over a conservatively estimated useful life. Fixed assets are reported on the asset side of the balance sheet at acquisition value, after deduction for accumulated depreciation accord­ing to plan and write-downs and with addition of possible write-ups. Negative goodwill. Negative Group goodwill consists of the amount by which real value of the Group’s share of acquired net assets exceeds the acquisition value. Negative goodwill is report­ ed as noninterest-bearing provisions. When negative goodwill is associated with expectations of future losses and costs that have been identified in the acquisition and can be measured in a reliable manner, but does not represent identifiable liabilities, this portion of negative goodwill is reported in the income statement when the future losses and costs are realized. Any outstand­ing negative goodwill that does not exceed the real value of the acquir­ed non-monetary assets is reported in the income statement on an accrual basis over the remaining weighted average useful life for these assets. The portion of negative goodwill that exceeds the real value of these assets is reported immediately in the income statement. Dissolution of negative goodwill is reported in the income statement in the item Amortization/depreciation and write-downs of intangible and tangible assets. Write-downs. If there is any indication that an asset has declined in value, an assessment is made of the asset’s reported value. In cases in which an asset’s reported value exceeds its computed recovery value, the asset is written down to its recovery value. Leasing. The Group has not entered into any financial leasing agreements of significant importance. The financial leasing agreements concluded mainly relate to vehicle leasing, and the amount is of negligible importance in assessing the Group’s position and income. Major operational leasing agreements primarily involve rental agree­ments and a limited number of other leasing agreements. The property at Strandboulevarden 130 in Copenhagen, which is essentially used by the Group, was sold to FIH A/S. The rent level is market based. The agreement includes a buyback right in 2010 at a price corresponding to the estimated market value. See also Note 6. Receivables. Receivables are stated in the amounts expected to be received, based on evaluation in each specific case. Receivables and liabilities in foreign currency. Receivables and liabilities in foreign currency are translated in the individual subsid­iaries at year-end exchange rates, in accordance with RR 8. Foreign exchange gains are offset against foreign exchange losses, regardless of the currency.

bonnier ab annual report

2008


Notes to the Financial Statements

Note 1 cont. Short-term investments. Short-term investments are valued at the lower of acquisition value and market value at year-end. Items affecting comparability. Profit/loss from items affecting comparability is recorded in note to the Condensed income statement on page 4 in the Board of Directors’ Report. Items affecting comparability are specified in Note 9. Valuation of inventories. Inventories are valued at the lower of cost – in accordance with the first-in/first-out principle – and net realizable value at year-end, or alternatively at 97 percent of the acquisition value.

Reporting of revenues and expenses. Sales of goods are reported on delivery to the customer in accordance with the terms and conditions of sale. Advertising revenues are reported net. Gross revenues are reduced by discounts and by advertising tax. Circulation revenues are reported net. Gross revenues are reduced by commissions and any discounts that apply. Rental income is reported for the period to which renting pertains, and royalty and similar items in accordance with the financial implication of the particular agreement. Other operating revenues comprise revenues not related to the company’s current operations. In accordance with the Act relating to Tax on Advertisements and Advertising (1972:266), advertising has in 2008 been subject to advertising tax of 3 percent (3) of taxable value. Government grants for joint distribution of newspapers, and a small number of other minor subsidies, are reported as cost reductions. Employee benefits. For defined-benefit pension plans the Group is applying RR 29. There are a number of defined-contribution as well as definedbenefit pension plans within the Group. In Sweden and Germany, the employees are covered mainly by defined-benefit pension plans and in other countries mainly by defined-contribution plans. In defined-contribution plans, the company pays a fixed fee to a separate legal entity and has no obligation to pay any additional fees. The Group’s earnings are charged with the costs incurred as the benefits are earned. In defined-benefit plans, payments are made to employees and former employees based on salary at the time of retirement on pension and the number of service years. The Group carries the risk that the committed payments are made. Defined-benefit pension plans are both funded and unfunded. The net of the calculated present value of the commitments and the current value of the managed assets is reported in the balance sheet as either a provision or a long-term financial receivable. In such cases in which the surplus in a plan cannot be utilized fully, only that portion of the surplus that the company can recover through reduced future payments or repayments is reported. The pension costs and pension commitments for definedben­efit plans are calculated based on actuarial grounds. The method distributes the costs for pensions in pace with the benefits earned by the employee through service to the company that increases their right to future payments. The company’s commitments are valued at the present value of future payments by applying a discount rate of interest that corresponds to the interest on first-class corporate bonds or alternatively government bonds with a term equivalent to the actual commitments. The interest expenses less the expected return on the managed assets are classified as a financial expense. Other cost items in the pension cost are charged against operating profit.

bonnier ab annual report

2008

If the pension cost and pension provisions that are determined for Swedish plans in accordance with RR 29 deviate from the correspond­ing amount pursuant to FAR SRS’s Recommendation RedR 4, Reporting of Pension Liabilities and Pension Costs, an expense for a special payroll tax on the difference is also reported, in accordance with URA 43. The accounting principle described above for defined-benefit pension plans is only applied in the consolidated accounts. The Parent Company reports defined-benefit pension plans in accordance with RedR 4. The Parent Company has undertaken defined-benefit pension due to employees. The Parent Company’s obligations to pay pension in the future thus have a present value, determined for each employee by, among other factors, pension level, age and to what degree the full pension has been earned. This present value has been calculated in accordance with actuarial grounds and is based on the salary and pension levels at the closing date. The pension obligations are reported as a provision in the balance sheet. The pension commitment for salaried employees secured through insurance with Alecta is reported in the Parent Company as a defined-contribution plan. The interest portion of pension costs for the year is reported as a financial expense. The interest rate specified by the PRI (Pension Registration Institute) is 5.7 percent (4.4). Other pension costs are charged against operating profit. Research and development. Expenditures for research programs are expensed as incurred. Development expenses are also normally expensed as incurred. These expenses primarily pertain to the development of new publishing products – paperbased and electronic – and normally do not fulfil the criteria of RR 15 for reporting as an asset in the balance sheet. Software. Standard software is expensed. Expenses incurred for software that has been developed for or considerably adapted for the Group are capitalized if it probably offers financial advantages that exceed costs after one year. Loan costs. Interest expense for certain large investment projects has been capitalized in the consolidated accounts during the construction period. On the other hand, no capitalization has occurred in the subsidiary concerned. The tax implications have been taken into account and are reported as deferred tax liability. Income tax. Reported income tax consists of tax to be paid or received for the year in question, adjustments pertaining to current tax for prior years, changes in deferred tax and participation in the tax of associated companies. All tax liabilities/receivables are valued at the nominal amount and in accordance with the tax regulations and tax rates determined or announced and which will certainly be approved. The concomitant tax effects for items reported in the income statement are also reported in the income statement. The tax effects of items booked directly against shareholders’ equity are reported against shareholders’ equity. Deferred tax is estimated in accordance with the balance sheet method, based on all temporary differences between reported and taxable values for assets and liabilities. Temporary differences arise mainly through valuation of loss carry-forwards and untaxed reserves. Deferred tax assets for loss carry-forward deductions or other future deductions for tax purposes are reported if it is likely that the deduction may be offset against a surplus for future taxation purposes. Due to the correlation between reporting and taxation, the deferred tax liability on untaxed reserves is reported in the Parent Company as part of untaxed reserves.

11


Notes to the Financial Statements

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

Group 2008 2007 5,916.9 6,313.6 6,201.8 6,031.5 6,037.8 5,336.4 3,969.4 4,019.3 2,494.6 2,525.4 3,678.1 3,786.7 1,665.5 1,642.3 –367.1 –447.7  29,597.0 29,207.5

Parent Company 2008 2007

Group 2008 2007 15,518.5 15,478.9 3,673.0 3,293.0 2,329.9 2,454.6 2,300.6 2,208.1 2,237.2 2,067.1 1,601.4 1,823.1 372.1 391.6 230.6 146.9 133.0 136.7 128.0 150.4 125.3 112.8 117.8 122.4 115.8 144.0 105.2 111.5 98.8 118.5 94.8 102.2 93.7 112.3 82.6 68.9 238.7 164.5  29,597.0 29,207.5

Parent Company 2008 2007 28.6 25.9

Group 2008 2007 461.9 607.1 322.0 585.3 935.9 745.1 284.5 253.6 168.1 328.9 –164.8 41.5 124.7 91.7 –316.7 57.2  1,815.6 2,710.4

Parent Company 2008 2007

33.2 33.2

30.3  30.3

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

0.2 2.0 0.1

0.2 2.6 0.1

2.3

1.5

  33.2

30.3

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

–183.9 –183.9

–162.7  –162.7

Note 3 Intra-group transactions

Purchases, % Sales, %

Parent Company 2008 2007 24.2 27.8 80.7 52.9

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

12

bonnier ab annual report

2008


Notes to the Financial Statements

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

2008 Number of of whom employees women, % 39 56

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

5,587 63 120 79 880 254 732 42 387 1,080 140 21 291 212 528 135 126 51 16 1,070 2 11,816 307 12,162

49 76 68 59 54 78 58 50 75 67 72 62 57 52 64 68 25 63 75 54 100 55 64 55

2007 Number of of whom employees women, % 34 59

5,553 58 138 80 921 258 661 40 366 1,214 138 25 509 228 439 131 140 34 10 837 2  11,782 52  11,868

48 76 69 49 55 68 57 48 74 65 70 68 58 54 62 67 76 68 50 53 50  55 62  55

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

Board members and senior executives

2008 Number on of whom closing date women, %

2007 Number on of whom closing date women, %

Group Board members Presidents and other senior executives

909 536

20 27

901 519

19 28

Parent Company Board members President and other senior executives

12 4

17 25

12 4

17

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

2008 1.2 0.1

2007 1.7 1.3

of which, illness absenteeism for men of which, illness absenteeism for women

0.1 1.1

0.1 1.6

of which, employees aged 30–49 of which, employees aged 50 and older

0.8 0.4

0.6 1.1

bonnier ab annual report

2008

13


Notes to the Financial Statements

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

Board members who are not employed by Bonnier AB with subsidiaries have not received consulting fees or other remuneration from the Bonnier AB Group above and beyond Board fees. Agreement on severance pay and termination period For the President, the period of notice is 6 months when notice is served by the President and 18 months when served by the company. No severance pay is provided. The period of notice for other senior executives normally amounts to between 6 and 12 months. The period of notice when served by the company is subject to agreements and in certain cases there are also agreements covering severance pay. In cases in which severance pay is not made, the period of notice is usually longer. The total period for severance pay and ­period of notice ranges between 18 and 36 months. Only the company may trigger agreements governing severance pay.

2008 Group, SEK M Parent Company Subsidiaries in Sweden Subsidiaries outside Sweden Joint ventures in Norway Group

2007

Wages/salaries Wages/salaries and other Social (of which and other Social (of which remuneration security costs pension costs) remuneration security costs pension costs)

46.2 2,569.7 2,318.8 164.2 5,098.9

In addition SEK 15.3 M (0.0) of provisions made in prior years for approved restructuring measures in connection with pension agreements was transferred to Provisions for PRI pensions. The relevant social security costs have been treated in a corresponding manner. SEK –1,5 M (2.0) of the Parent Company’s pension costs pertains to members of the Board and the President (incl. Executive Vice Presidents).

34.5 1,130.2 353.5 21.1 1,539.3

12.2 261.6 152.7 –2.4 424.1

42.9 2,496.5 2,212.7  28.9  4,781.0

26.3 1,152.9 321.6  14.6  1,515.4

8.4 278.2 142.5  6.7  435.8

The company’s pension obligations to these persons, which are reported as a liability, amount to SEK 83.0 M (84.4). SEK 24.1 M (32.6) of the Group’s pension costs pertains to members of Boards and Presidents. The Group’s pension obligations to these persons, which are reported as a liability, amount to SEK 160.5 M (168.4).

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

SEK M Parent Company Subsidiaries in Sweden

Boards and Presidents 10.3 87.6

2008 (of which bonus, etc.) 0.6 11.0

Other employees 35.9 2,482.1

Boards and Presidents 21.2 102.2

3.9 0.7 1.6 33.9 2.1 24.7 2.2 33.7 1.8 0.8 2.3 10.0 0.3 1.9 1.0 1.4 3.1

Subsidiaries outside Sweden Australia Bulgaria Croatia Denmark Estonia Finland France Germany Latvia Lithuania New Zealand Norway Poland Russia Slovenia Spain UK Ukraine United States Other countries Subsidiaries outside Sweden Joint ventures in Norway

7.1

0.6

126.9 2.3

21.4 0.3

25.9 8.7 11.6 506.7 48.1 358.2 14.5 169.2 132.2 23.4 6.8 112.0 51.9 91.0 33.2 49.1 16.5 2.1 530.2 0.6 2,191.9 161.9

Group

227.1

33.3

4,871.8

14

6.1 1.0 0.8 32.3 2.5 22.3 2.4 34.3 1.6 1.1 1.8 4.2 0.4 1.9 1.3 1.4 4.4

0.2

1.5 0.3 18.0

0.6

0.2

2007 (of which bonus, etc.) 5.4 17.9

Other employees 21.7 2,394.3

0.1

0.2

24.7 6.5 10.3 507.3 42.3 322.0 18.5 153.4 121.2 20.0 6.7 219.7 50.0 68.0 38.5 44.0 13.8

8.4 0.7  134.5 0.9 

1.3   26.7 0.2 

409.6 1.7  2,078.2 28.0 

258.8

50.2

4,522.2

1.9 1.9 19.5 0.1 0.4 1.3

bonnier ab annual report

2008


Notes to the Financial Statements

Note 6 Leasing agreements Group 2008 2007

SEK M Financial leasing agreements

Parent Company 2008 2007

The Group has not entered into any financial leasing agreements of material importance. Financial leasing primarily involves the leasing of vehicles. Operational leasing agreements Operational leasing agreements of material importance primarily involve rental agreements and a limited number of other leasing agreements. Leasing fees for the year Contracted future leasing fees Within 1 year 1–5 years More than 5 years In 2002, Bonnier Publications A/S sold its property at Strandboule­varden 130 in Copenhagen to FIH A/S. The property is essentially used by the seller, who pays market-based rent. Bonnier AB has taken on a joint rent lease. Bonnier

953.8

604.9

10.4

4.5

737.7 2,142.9 1,464.9

658.3 1,923.8 1,346.4

8.5 25.7 6.5

3.4

Publications A/S is entitled but not obliged to buy back the property in 2010 at a price correspond­ing to the estimated market value.

Note 7 Fees to auditors SEK M Öhrlings PricewaterhouseCoopers AB Auditing assignments Other assignments Other auditors Auditing assignments Total Auditing assignments comprise auditing of the Annual Report and bookkeeping, the Board of Directors’ and the President’s administration, and any other duties which the company’s corporate auditors may be liable to

Group 2008 2007

Parent Company 2008 2007

20.2 12.6

14.5 6.3

1.6 4.3

1.2 1.6

9.0 41.8

7.5  28.3

5.9

  2.8

perform, and also advisory services or other assist­ance that may arise due to such an audit or the implementation of such other duties. Any other assignments are Other assignments.

Note 8 Amortization/depreciation and write-downs of intangible and tangible fixed assets SEK M Provisions (see also Note 24, Negative goodwill) Intangible fixed assets (see also Note 29) Tangible fixed assets (see also Note 30) Total

Group 2008 2007 7.4 8.0 –2,675.4 –2,114.3 –451.5 –412.5  –3,119.5 –2,518.8

Parent Company 2008 2007

Group 2008 2007 10.7 19.4 499.7

Parent Company 2008 2007

–2,6 –2,6

–1.2  –1.2

Note 9 Items affecting comparability SEK M Capital gain on properties sold Capital gain on subsidiaries and associated companies sold Capital gain on other shares Write-downs of associated company shares Write-downs of shares Restructuring costs Other items affecting comparability, expenses Total

bonnier ab annual report

2008

–0.1 163.3

–21.5 –1,845.0 –208.8 –189.4

–75.1 –43.9  369.9

  –1,681.8

15


Notes to the Financial Statements

Note 9 cont. Items affecting comparability are shown in the following lines in the income statement: Group 2008 2007 56.1 445.0 –36.7 –208.8 –75.1

SEK M Other operating revenues Other external costs Personnel costs Income from participation in subsidiaries Income from other securities and receivables held as fixed assets Total

–189.4

Parent Company 2008 2007

–1,845.1 163.3  –1,681.8

  369.9

Note 10 Share of profit/loss in associated companies before tax The Group’s participation in associated companies with not insignificant profit/loss and in shareholders’ equity is presented in the consolidated ­accounts in accordance with the equity method, as shown in Note 1.

SEK M Borås Tidning Tryckeri AB Koll KB1) Lokal-TV Nätverket i Sverige AB PR-Media ApS SF Kino Stavanger/Sandnes AS Tidningarnas Telegrambyrå AB Tidningstryckarna/Vanda KB Tidsam AB Workey AB Other Total 1)

Ownership, % Dec. 31, 2008 50.0 66.7 20.4 35.0 49.0 30.0 50.0 42.5 33.3

Share of profit/loss before tax is reported on a separate line as part of operating profit and the results by associated company were as follows:

Group 2008 2007 9.2 2.8 –13.7 –4.2 –17.6 –5.6 3.9 10.6 11.0 –1.3 –16.7 15.1 11.7 –4.4 –1.6 3.2  21.7 –19.3

The company became a subsidiary in 2008.

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

16

Parent Company 2008 2007 2,522.5 902.7 –1,013.3 –0.1 2,411.8

2,253.0 316.7 –0.1 –1,845.0   724.6

–5.0  –5.0

bonnier ab annual report

2008


Notes to the Financial Statements

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

Group 2008 2007 2.3 1.8 1.5 1.2 0.8 8.1 2.9 1.2 –6.6 –0.2  0.9 12.1

Parent Company 2008 2007 178.5

123.8

178.5

163.3   287.1

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

Group 2008 2007

Parent Company 2008 2007

8.4 44.5 52.9

27.3 52.3  79.6

5.5 1.3 6.8

0.1 0.6 0.7

–17.3 –319.5 –336.8

–5.8 –371.6   –377.4

–276.5 –57.6 156.5 –177.6

–187.3 –74.9 39.7  –222.5

Note 14 Appropriations Parent Company 2008 2007 –176.6 –1.0   –177.6

SEK M Tax allocation reserve Accelerated depreciation Total

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

Group 2008 2007 –554.8 –644.4 106.9 –180.0 –12.3 –11.9  –460.2 –836.3 –25.5

8.4

–519.9

–616.0 

Parent Company 2008 2007 –148.5 –8.4 –4.2 0.7   –152.7 –7.7 8.4 –8.4

–52.1 

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

bonnier ab annual report

2008

Group 2008 2007 3,119.7 1,062.8 –21.7 –20.0 78.7

41.2 –445.0 150.3

210.6 3,367.3

–57.1  752.2

Parent Company 2008 2007 1,020.9 1,846.2 –1,763.9 1,035.1

–22.9 –156.2 4.7 –917.4

–163.2 30.2 –31.1 3.3  2,720.5

17


Notes to the Financial Statements

Note 17 Intangible fixed assets Group 2008 2007 11,788.1 8,474.9 5.1 168.2 4.4 5.0 1,773.9 1,044.8 1) 315.1 255.4  13.886.6 9,948.3

SEK M Goodwill Publishing rights Leasing and tenant rights Film rights Other intangible fixed assets Total 1)

Changed accounting principle, see Note 1.

Major goodwill items: Group, SEK M Nordic Broadcasting Oy Bonnier Corporation C More Group AB Tidnings AB Marieberg Sydsvenska Dagbladets AB Weldon Owen Publishing, Inc. Ullstein Buchverlage GmbH GT/Göteborgs-Tidningen AB Adlibris AB The Templar Company Ltd. Forlaget Benjamin ApS Thienemann Verlag GmbH Bonnier Publications, OOO Other companies1) Total 1)

Acquisition value 5,458.0 2,721.2 2,591.1 1,870.6 224.6 219.9 200.1 156.0 153.7 134.4 124.7 122.6 115.4 2,152.8 16,245.1

Planned residual value 5,162.2 2,477.9 2.580,3

Outstanding number of years 18.0 18.2 19.9

61.1 159.4 106.2 41.0 103.1 111.6 35.9 25.6 109.6 814.2 11,788.1

5.5 7.3 4.5 4.0 6.2 9.8 3.5 2.0 9.5

Including goodwill items with acquisition value below SEK 100 M.

See also Note 29.

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

Group 2008 2007 11.1 14.2 25.3

11.5 16.7  28.2

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

18

Group 2008 2007 54.6 146.4 –39.0 3.9 165.9

79.3 71.7 –101.7 4.4 0.9  54.6

bonnier ab annual report

2008


Notes to the Financial Statements

Note 20 Participations in associated companies

Indirect holdings in associated companies: 118 100 online AB Allt om Motor Sverige AB Biograf Sture AB Bokrondellen HB Border Productions Oy Borås Tidning Tryckeri AB Börs-SM AB Dagens Medisin AS Den Norske Bokdatabasen AS Drivankaret AB Elib AB Elittera AS Ess Media AB Fem Förlag AB GP Sydsvenskan Media AB Hela Skåne AB HemNet Service HNS AB KA-biografer HB Lägenhetsbyte Sverige AB Mindpark AB News and Crowd Casting AB Nordic World AS Novadu Zinas, SIA Oy Mediuutiset Ab Platco Oy PR-Media ApS Pramedi AB Pressens Morgontjänst AB Pressens Morgontjänst KB Print Panel AB Scandinavian Media Alliance A/S SF Kino Stavanger/Sandnes AS Suomen Radioviestintä Oy Svenska Bio Lidingö, HB Swede Media Inc. Taskukirja Loisto Oy Tidningarnas Telegrambyrå AB Tidningstryckarna/Vanda AB Tidningstryckarna/Vanda KB Tidsam AB Västerås Biografer, HB Workey AB Group total

Corp. Reg. No 556696-3160 556750-4740 556503-3650 969698-9996 2021795-2 556268-0578 556502-9088 979914253 990820023 556512-4194 556600-2126 991054545 556271-0649 556187-5054 556712-6197 556701-4922 556260-0089 916527-8921 556685-6018 556740-7597 556754-8440 988873160 000348800 1471935-8 1703676-3 28687818 556739-9497 556137-8638 916642-7139 556636-9491 13703108 882288072 1012135-9 916615-5698 77-0582358 0457897-7 556564-5487 556721-5545 969716-9630 556423-4788 902002-1664 556700-0509

Reg. office Stockholm Stockholm Stockholm Stockholm Nakkila Borås Stockholm Oslo Oslo Stockholm Stockholm Horten Ystad Gothenburg Stockholm Malmö Stockholm Lidingö Stockholm Malmö Stockholm Oslo Tukums Helsinki Helsinki Hellerup Stockholm Stockholm Solna Stockholm Copenhagen Sandnes Helsinki Lidingö Los Gatos Helsinki Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm

% of share capital 48.0 65.0 49.0 25.0 50.0 50.0 50.0 50.0 15.0 50.0 29.5 16.0 33.4 50.0 50.0 50.0 33.0 49.0 45.0 22.2 30.0 50.0 34.0 50.0 33.3 35.0 50.0 50.0 50.0 33.3 50.0 49.0 27.7 50.0 58.5 25.0 30.0 50.0 50.0 42.5 50.0 33.3

Number of participations/ shares 480 650 343 1 4,000 20,000 500 6,000 15,000 500 500 408,332 334 510 1,000 300 3,300 1 450 100 750 5,000 238 2,000 100 50,480 500 500 1 200 150 490,000 20,414 1 1,000,000 35 149,301 50,000 1 42,500 1 727,670

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

Reported value in SEK M1) 0.0 3.7 0.6 0.0 0.0 12.5 0.1 0.6 1.7 0.1 0.5 1.4 0.5 0.0 0.4 0.2 2.1 0.0 0.8 0.1 0.3 0.0 0.5 4.4 0.1 0.0 0.0 0.1 0.6 0.1 0.1 19.4 1.8 0.0 0.9 2.7 36.4 0.1 0.0 30.5 0.0 1.6 124.9 –62.5 62.4

1) Reported 2) After

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

Associated companies reported for the first time in accordance with the equity method: Group, SEK M Allt om Motor Sverige AB Elittera AS News and Crowd Casting AB PR-Media ApS SF Kino Stavanger/Sandnes AS Workey AB Total 1)

Proportion of shareholders’ equity1) 5.0 0.9 0.3 –1.6 16.7 1.6 22.9

Reported value 3.7 1.4 0.3 0.0 19.4 1.6 26.4

Difference 1.3 –0.5 0.0 –1.6 –2.7 0.0 –3.5

In the associated company.

bonnier ab annual report

2008

19


Notes to the Financial Statements

Note 21 Inventories, etc. SEK M Raw materials and consumables Semi-finished goods Finished goods Goods for resale Work in progress on contract Advance payments to suppliers Total 1)

Group 2008 2007 192.3 152.1 125.9 117.8 728.4 655.9 1) 300.7 283.4 237.3 210.8 113.8 91.8  1,698.4 1,511.8

Changed accounting principle, see Note 1.

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

Group 2008 2007 258.2

216.1

15.0 226.2 499.4

14.8 44.4  275.3

0.1

8.7

43.9 3,975.6 180.8 466.3 2,416.3 7,083.0

41.1 4,127.5 117.5 429.2 1,528.9  6,252.9

Parent Company 2008 2007 60.0 61.9

80.0

1.1 123.0

1.3  81.3

1,085.2 0.2

142.8 13.2

3.5 69.7 1,158.6

0.8 35.1  191.9

Note 23 Prepaid expenses and accrued income SEK M Noninterest-bearing receivables Accrued interest income, Group companies Accrued interest income Prepaid films Prepaid rents Other items Total

20

Group 2008 2007

11.0 851.7 107.0 1,446.6 2,416.3

0.2 1.1 577.2 89.5 860.9  1,528.9

Parent Company 2008 2007

57.8

32.0

1.9 10.0 69.7

1.2 1.9  35.1

bonnier ab annual report

2008


Notes to the Financial Statements

Note 24 Provisions SEK M Interest-bearing provisions Provisions for PRI pensions Provisions for other pensions Reserves for restructuring costs Provisions for future purchase from minority owners Other provisions Total Noninterest-bearing provisions Provision for deferred tax Negative goodwill Other provisions Total Negative goodwill Acquisition value, Jan. 1 Accumulated acquisition value, Dec. 31 Accumulated dissolution, Jan. 1 Dissolution for the year Accumulated dissolution, Dec. 31 Closing reported value

Group 2008 2007 947.7 351.8 107.4 656.4 34.7 2,098.0

860.5 354.7 94.7 507.1 30.2  1,847.2

566.8 10.6 577.4

604.6 7.4 46.2  658.2

40.0 40.0

40.0  40.0

–32.6 –7.4 –40.0

–24.6 –8.0  –32.6

0,0

7.4

Parent Company 2008 2007 40.1 105.4

38.1 102.0

145.5

9.4  149.5

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

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

Group 2008 2007

4,866.4 4,866.4

0.3 4,175.1  4,175.4

26.7 26.7

11.0  11.0

Parent Company 2008 2007

2,281.9 2,281.9

1,450.0 1,450.0

Note 26 Credit limits Group 2008 2007 7,662 8,253 5,018 3,650 

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

Parent Company 2008 2007 4,800 4,279 2,883 1,450

Excluding pension provisions.

bonnier ab annual report

2008

21


Notes to the Financial Statements

Note 27 Current liabilities Group 2008 2007

SEK M Interest-bearing liabilities Liabilities to Group companies Liabilities to subsidiaries Liabilities to associated companies Reserves for restructuring costs Liabilities to credit institutions Total

325.4

188.8

8.0 135.8 1,890.9 2,360.1

1.5 86.5 976.6  1,253.4

Noninterest-bearing liabilities Advances from subscribers Other advances from customers Accounts payable – trade Liabilities to Group companies Liabilities to associated companies Tax liabilities Other liabilities Accrued expenses and prepaid income (Note 28) Total

1,301.3 240.6 2,805.6 93.0 23.9 645.0 810.9 3,068.1 8,988.4

1,111.9 254.1 2,287.5 30.0 18.4 388.9 706.4 2,469.5  7,266.7

Parent Company 2008 2007

4,009.1

4,344.5

4,009.1

  4,344.5

12.1 56.1

6.2 83.6

148.5 1.8 117.5 336.0

5.6 60.1  155.5

Note 28 Accrued expenses and prepaid income Group 2008 2007 533.4 491.1 239.4 240.2 217.7 216.8 85.8 62.9 221.1 211.6 1,770.7 1,246.9  3,068.1 2,469.5

SEK M Liability for vacation payments Social security charges Accrued royalties Accrued interest expense Personnel-related accrued costs Other items Total

Parent Company 2008 2007 8.7 7.8 3.6 3.1 12.2 4.3 88.7 117.5

17.5 9.6 22.1  60.1

Note 29 Intangible fixed assets, Group SEK M Acquisition value, Jan. 1, 2008 Purchases Sales and disposals Acquisitions and sales of companies Reclassifications Translation difference Accumulated acquisition value, Dec. 31 Amortization, Jan. 1, 2008 Sales and disposals Acquisitions and sales of companies Amortization for the year Reclassifications Translation difference Accumulated amortization, Dec. 31

Goodwill 11,996.9 3,068.1 –5.4 148.6 10.0 1,026.9 16,245.1

Publishing rights 251.8 6.7 –1.2 –6.9 –165.7 0.2 84.9

–3,451.8 5.4 –91.9 –627.5 –10.0 –188.6 –4,364.4

–83.6 1.2 2.4 –3.0 6.0 –2.6 –79.6

Write-ups, Jan. 1, 2008 Acquisitions and sales of companies Translation difference Accumulated write-ups, Dec. 31 Write-downs, Jan. 1, 2008 Sales and disposals Acquisitions and sales of companies Write-downs for the year Translation difference Accumulated write-downs, Dec. 31 Planned residual value, Dec. 31 Planned residual value, Dec. 31, 2007

Film rights 2,483.7 2,137.9 450.6 –5.9 269.7 5,336.0 –1,438.8

–1,943.9 –179.1 –3,561.8

16.9 –17.1 0.2 0.0 –70.2 –0.3 –13.4 –8.7 –92.6

–16.9 17.1 0.6 –0.8 –0.2 –0.2

11,788.1 8,474.9

Other 527.4 98.4 –17.0 –6.6 119.8 73.9 795.9

Total 15,259.8 5,311.1 –23.6 585.7 –41.8 1,370.7 22,461.9

–254.4 9.6 2.3 –69.9 –109.0 –41.8 –463.2

–5,228.6 16.2 –87.2 –2,644.3 –113.0 –412.1 –8,469.0

0.1

17.0 –17.1 0.2 0.1

0.1 –0.1

–0.2

–12.7 1.7 14.4 –16.7

–0.3

–13.3

–99.9 18.8 14.7 –31.1 –8.9 –106.4

5.1

1,773.9

319.5

13,886.6

168.2

1,044.8

260.4

9,948.3

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

22

bonnier ab annual report

2008


Notes to the Financial Statements

Note 30 Tangible fixed assets, Group

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

Buildings and land 2008 2007 2,423.6 1,805.8 12.3 21.8 –0.3 –12.1 –566.3 565.7 20.5 23.0 21.9  1,892.3 2,423.6

Plant and machinery 2008 2007 3,125.4 2,566.7 90.4 55.1 –17.3 –8.8 429.3 –80.8 78.0 25.2 5.1  3,142.9 3,125.4

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

–373.2 0.4 –5.3 –34.8

–335.5 3.7

–1,657.1 11.9

–40.3

–5.8 –418.7

–1.1  –373.2

–177.6 108.5 –11.5 –1,725.8

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

–621.3

–622.9 1.8

–558.2 4.0

–0.2   –621.3

–0.4

–1.1 –633.0

–554.6

Planned residual value, Dec. 31

840.6

1,429.1

862.5

Reported value outside Sweden Buildings Land

83.6 8.6

466.0 189.9

490.5 22.4

491.0 20.4

Taxable value in Sweden Buildings Land

Equipment, tools, fixtures and fittings 2008 2007 2,381.7 1,877.5 383.3 245.9 –349.8 –81.8 88.7 315.9 162.6 6.7 91.6 17.5  2,758.1 2,381.7

–1,192.4 7.0 –302.9 –165.2 –2.0 –1.6  –1,657.1

–1,583.8 269.0 –74.2 –236.6 –159.2 –52.9 –1,837.7

–1,290.5 67.9 –143.2 –206.4 –1.5 –10.1  –1,583.8

–558.2

  –558.2

–101.9 3.2 3.1 –2.1 2.1 –95.6

–106.4 4.3 –0.2 –0.4 0.8  –101.9

910.1

824.8

696.0

–10.6

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

Note 31 Tangible fixed assets, Parent Company

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

bonnier ab annual report

2008

Equipment, tools, fixtures and fittings 2008 2007 16.8 14.4 6.7 2.4 –1.0   22.5 16.8 –11.6 1.0 –2.6 –13.2

–10.4

9.3

5.2

–0.3 –1.0 –1.3

–0.3   –0.3

–1.2  –11.6

23


Notes to the Financial Statements

Note 32 Financial fixed assets, Group Other Interest-bearing Other securities receivables interest-bearing held as from associated long-term fixed assets companies receivables 89.2 6.5 24.3 4.0 0.6 47.0

Participations in associated companies 342.2 34.0 –6.4 –69.3 –170.2 –5.4 0.2 125.1

SEK M Acquisition value, Jan. 1, 2008 Purchases Change in share of equity Sales and disposals Acquisitions and sales of companies Reclassification Translation difference Accumulated acquisition value, Dec. 31 Write-ups, Jan. 1, 2008 Accumulated write-ups, Dec. 31

–33.1 1.0 5.2 –0.9 65.4

–0.9

Deferred tax receivables 432.8 134.5

–4.0 –11.5 –10.1 –0.3 45.4

6.2

182.3 70.6 820.2

5.9 5.9

0.5 0.5

–248.0 2.4 247.0

–15.9

–7.4 –0.1 –6.1

–1.3 –0.1 –3.4

–5.4

0.1 –1.3

Planned residual value, Dec. 31

124.9

62.5

0.8

44.1

820.2

Planned residual value, Dec. 31, 2007

100.1

73.8

6.5

22.9

432.8

Write-downs, Jan. 1, 2008 Sales and disposals Acquisitions and sales of companies Reclassification Write-downs for the year Translation difference Accumulated write-downs, Dec. 31

–1.4

13.9 –5.4

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

Note 33 Financial fixed assets, Parent Company Participations in subsidiaries 24,212.4 834.7 1,356.5

SEK M Acquisition value, Jan. 1, 2008 Acquisitions Shareholder contributions Translation difference Sales/amortization Accumulated acquisition value, Dec. 31

Interest-bearing receivables from Group companies 2,598.8 8.5 57.3

Participations in associated companies

Deferred tax receivables 33.8

225.4 –0.1 26,403.5

8.5

–9,064.1 –1,013.2 –10,077.3

–5.0 –5.0

Planned residual value, Dec. 31

16,326.2

3.5

Planned residual value, Dec. 31, 2007

15,148.3

Write-downs, Jan. 1, 2008 Write-downs for the year Accumulated write-downs, Dec. 31

2,881.5

–4.1 29.7

2,881.5

29.7

2,598.8

33.8

Write-downs for the year are reported in the income statement on the line Income from participation in subsidiaries.

Note 34 Provisions

SEK M Value, Jan.1, 2008 Provisions/reductions Utilized Reclassification Other incl. acquisitions/sales of companies Translation difference Value, Dec. 31

PRI pensions 860.5 95.9 –14.0 15.3 –10.0 947.7

Other pensions 354.7 –20.8 –32.8 7.4 32.6 10.7 351.8

Group Provision for future pur­ Restruc­­turing chase from costs min. owners 94.7 507.1 68.8 75.8 –7.3 –53.9 –44.8 33.9 –4.0 93.5 107.4 656.4

Parent Company

Deferred tax 604.6 –51.5

–8.4 22.1 566.8

Other 83.8 9.5 –50.1 25.9 –26.5 2.7 45.3

PRI pensions 38.1 3.9 –1.9

Other pensions 102.0 9.3 –5.9

40.1

105.4

Other 9.4 –9.4

0.0

The closing balance for provisions for restructuring costs pertains to Books, Broadcasting, Business Press, Morning Paper, Evening Paper and Other business areas. Provisions will be utilized gradually during the period 2009–2015. Provision for future pur­chase from minority owners pertains to shares in companies where Bonnier AB Group has conducted option agreements to buy the shares from the minority shareholders.

24

bonnier ab annual report

2008


Notes to the Financial Statements

Note 35 Participations in subsidiaries

1. Bonnier & Bonnier AB 2. Bonnier Annons AB 3. Bonnier Books AB Adlibris AB Adlibris ApS Adlibris Finland Oy Bonnier Manga AB Bonnier Publishing Ltd. Bonnier Media Ltd. Brimax Publishing Ltd. Editions Piccolia, S.A. The Five Mile Press Pty. Ltd. The Templar Company Ltd. Bonnierförlagen AB Albert Bonniers Förlag AB Bokförlaget Bonnier Fakta AB Bokförlaget Forum AB Bokförlaget Maxström AB Bonnier Audio AB Bonnier Utbildning AB Fitnessförlaget i Europa AB Förlaget Rebus AB Manga Media i Stockholm AB Månadens Bok, HB Samdistribution Bonnierförlagen AB Streiffert Förlag AB Wahlström & Widstrand, AB Jultidningsförlaget Semic AB Kustannus Oy Tammi Readme.fi Oy Pandaförsäljningen AB SEMIC International AB 4. Bonnier Business Press AB Bonnier Asia Holdings Ltd. Sino Sweden Bonnier Beijing Business Service Co. Ltd. Bonnier Business (Polska) Sp.z.o.o. Processor, AB Puls Biznesu Net S.A. Bonnier Business Media OÜ Bonnier Business Press, ZAO Bonnier Holding Ukraine LLC Rynok Media LLC Business Media Group AD Business.hr d.o.o. Zagreb Casnik Finance, d.o.o. Dagens Industri AB Dagens Industri Privatekonomi AB DI Online AB Dienas bizness, SIA Izdevnieciba DiTV AB MediAyr Ltd. Medicine Today International MTI AB Dagens Medicin Sverige AB Editora Paulista de Comunicações Científicas e ­Técnicas Ltda. Medicine Today International Advertising Medad AB Medicine Today Poland Sp.z.o.o. Verslo Žinios, UAB Äripäev, AS 5. Bonnier Business Publishing AB 6. Bonnier Deutschland GmbH Bonnier Media Deutschland GmbH arsEdition AG arsEdition GmbH Bonnier 1. Beteiligungs- und Verwaltungs GmbH Buch Vertrieb Blank GmbH Carlsen Verlag GmbH bonnier ab annual report

2008

Corp. Reg. No. 556279-0294 556458-9124 556233-3111 556261-3512 29619549 0195663-7 556157-7189 01273558 5311887 5311882 380771733 005966245 01549157 556023-8445 556203-3752 556145-9636 556014-8727 556526-8918 556074-9318 556203-2481 556623-3986 556483-4207 556645-3378 902003-8106 556042-9887 556274-6734 556043-7724 556166-9572 0599340-0 2160350-5 556369-7720 556046-1336 556490-1832

0000024847 556023-6258 0000062826 11460687 N 76340 33629876 33784724 839/2003 MB1949179 1/31402/00 556221-8494 556509-5188 556509-7267 000311872 556110-9140 SC219885 556555-7187 556560-0037 CNPJ 08.528.247 556617-5518 0000099422 1068281 10145981 556468-8892 HRB 156443 HRB 136800 170.3.003.869-4 HRB 145362 HRB 103563 HRB 92253 HRB 43092

% of share Reg. office capital Stockholm 100.0 Stockholm 100.0 Stockholm 100.0 Stockholm 84.9 Copenhagen 100.0 Helsinki 100.0 Stockholm 100.0 Chichester 100.0 Chichester 100.0 Chichester 100.0 St. Michel sur Orge 100.0 Melbourne 100.0 Dorking 65.0 Stockholm 100.0 Stockholm 100.0 Stockholm 100.0 Stockholm 100.0 Stockholm 91.0 Stockholm 70.0 Stockholm 100.0 Stockholm 100.0 Helsingborg 100.0 Stockholm 100.0 Stockholm 70.0 Stockholm 100.0 Stockholm 100.0 Stockholm 100.0 Sundbyberg 100.0 Helsinki 100.0 Helsinki 95.0 Karlstad 100.0 Stockholm 100.0 Stockholm 100.0 Hongkong 100.0 Beijing 100.0 Warsaw 100.0 Stockholm 100.0 Warsaw 100.0 Tallinn 100.0 St. Petersburg 100.0 Kiev 100.0 Kiev 100.0 Sofia 50.0 Zagreb 100.0 Ljubljana 100.0 Stockholm 100.0 Stockholm 100.0 Stockholm 100.0 Riga 100.0 Stockholm 100.0 Ayr 100.0 Stockholm 100.0 Stockholm 100.0 São Paulo Stockholm Warsaw Vilnius Tallinn Stockholm Munich Munich Zug Munich Hamburg Vierkirchen Hamburg

99.9 100.0 100.0 72.8 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Number of % of participations/ votes1) shares 300,000 1,000 2,500

Reported value SEK M 34.0 0.1 1,604.5

200,000

1,978.5

1,000 30,000,000

0.1 1,014.4

2)

2)

3) 2)

25


Notes to the Financial Statements

Note 38 cont.

Fahrenheit Mediengesellschaft mbH Hörbuch Hamburg HHV GmbH Libresco GmbH Pendo Beteiligungsgesellschaft mbH Piper Verlag GmbH R. Piper & Co Verlag GmbH Thienemann Verlag GmbH Ullstein Buchverlage GmbH Euroline Publishing GmbH K. Verlags- und Vertriebsgesellschaft mbH 7. Bonnier Entertainment AB Bonnier Amigo Music Group AB Bonnier Amigo Music Denmark A/S Bonnier Amigo Music Distribution AB Bonnier Amigo Music Finland Ab, Oy Bonnier Amigo Music Norway AS Tuba Records AS Bonnier Gaming AB Bonnier Lottery AB Mix Megapol.com AB Bonnier MultiMedia AB Expericard AB Homeenter AB Discshop Svenska Näthandel AB Discshop Alandia Ab Discshop Norge AS Homeenter Alandia Ab Homeenter Polska Sp.z.o.o. SF Bio AB SF Anytime AB SF Partner AB Svensk Filmindustri Kino AS Kino1 Skien AS Svensk Filmindustri, AB Filmbolaget Treklövern HB InfoCom Bonnier ICB AB Distributionsselskabet SF A/S Sonet Film AB Happy Life Animation GmbH Svensk Filmproduktion 2 KB Sällskapsfilmerna AB Svensk Filmindustri International AB FS Film Oy Juonifilmi Oy SF Norge AS Syncron Film AS 8. Bonnier Finans, AB Bonnier Financial Services AB Parasol N.V. 9. Bonnier Holding Norway AS Bonnier Blader AS Bonnier Media AS Bonnier Media II AS Cappelen Adlibris AS 10. Bonnier International Magazines AB 11. Bonnier Magazine Group A/S Bonnier Comics A/S Bonnier Magazine Data A/S Bonnier Publications A/S Benjamin Media A/S Benjamin Publications AS Benjamin Media AB Thor Publications ApS Bonnier A/S Bonnier Business Press A/S

26

Corp. Reg. No. HRB 170525 HRB 98748 HRB 723887 HRB 150968 HRB 71118 020.4.900.429-9 HRB 3287 HRB 91717 HRB 169323 HRB 4862 556047-0667 556059-7766 24208141 556599-2434 0840682-2 881174502 881115972 556096-9411 556525-5535 556472-0554 556031-8775 556623-9355 556293-3381 556604-9952 1932506-7 914864445 1655221-3 0000103243 556035-1651 556748-2616 556379-4014 962277055 982856493 556003-5213 916404-8804 556187-4115 25353277 556478-1705 HRB 82146 916618-2924 556631-4588 556540-3937 1571957-9 1914756-3 947714732 964346453 556026-9549 556067-9887 451911518 990212880 984424221 986609105 987904151 990335214 556072-0293 53376614 21772836 26340136 12376405 25796829 986321829 556659-2522 25809874 70978016 24205258

Reg. office Munich Hamburg Stuttgart Munich Munich Zürich Stuttgart Berlin Munich Freiburg Stockholm Stockholm Copenhagen Skara Helsinki Oslo Oslo Stockholm Stockholm Stockholm Stockholm Stockholm Burlöv Stockholm Mariehamn Lysaker Mariehamn Warsaw Stockholm Stockholm Stockholm Tønsberg Skien Stockholm Stockholm Stockholm Copenhagen Stockholm Berlin Stockholm Stockholm Stockholm Helsinki Helsinki Oslo Oslo Stockholm Stockholm Edegem Oslo Oslo Oslo Oslo Oslo Stockholm Copenhagen Copenhagen Copenhagen Copenhagen Copenhagen Oslo Stockholm Copenhagen Copenhagen Copenhagen

% of share capital 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 55.0 100.0 100.0 100.0 60.8 100.0 100.0 100.0 100.0 100.0 100.0 66.6 100.0 67.0 99.9 100.0 100.0 100.0 69.0 100.0 100.0 100.0 91.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 50.5 100.0 100.0 100.0 100.0 100.0

Number of % of participations/ votes1) shares

Reported value SEK M

150,000

1,151.3

1,000,000

308.8

1,100

11.7

1,000 157

1.0 1,663.4

57.0

bonnier ab annual report

2008


Notes to the Financial Statements

Note 38 cont.

BAM (2005) Ltd. Dagbladet Børsen A/S Dagens Medicin A/S SF Film A/S SF Film Productions ApS The Freeway ApS Bonnier Publications AB Bonnier Publications Oy Bonnier Publications International AS Bonnier Alandia Ab Semic Trading AS Bonnier Publications Ltd. Bonnier Publications, OOO Bonnier Responsmedier A/S Idé-Nyt A/S Bonnier Responsmedier Group AB Bonnier Responsmedier AS Bonnier Responsmedier AB Bonnier Responsmedier Försäljning AB Suorayhtiöt Oy Suoramedia Oy Bonniers ServiceCenter A/S Børsen Forum A/S Bonnier Business Forum AS Bonnier Business Forum Oy Marked og Media Konsulentene AS PSE 38 nr 2087, A/S PSE 38 nr 2088, A/S PSE 38 nr 2089, A/S PSE 38 nr 2090, A/S Over-Trading ApS 12. Bonnier Media Holding AB Spring Media Inc. Bonnier States AB Bonnier US Holding Inc. Bonnier Corporation Bonnier Active Media, Inc. Transworld Magazine Corporation Warren Miller Entertainment Bonnier Working Mother Media, Inc. The Parenting Group, Inc. TPG Sampling & Customer Publishing, Inc. World Publications Holding, LLC Virgin Islands Publications, LLC World Entertainment Services, LLC World Publications, LLC World Publications II, LLC World Publications III, LLC World Sports and Marketing, LLC Byeway Books Inc. Weldon Owen Publishing, Inc. Weldon Owen Education, Inc. Weldon Owen Education Ltd. Weldon Owen, Inc. Weldon Owen Magazine, Inc. Weldon Owen Proprietary, Ltd. Weldon Russel Propriety, Ltd 13. Bonnier Tidskrifter AB Allt om Mat på Nätet AB AlltomBarn i Stockholm AB Bonnier Zoo Förlag AB City Bild i Stockholm AB Laredius & Daniels Media AB iLike i Stockholm AB L G Karlsson Producenterna i Stockholm AB

bonnier ab annual report

2008

Corp. Reg. No. SC203787 76156328 20052678 21388939 26390168 26399866 556534-9692 0996378-6 977041066 1473733-7 912952711 212894 1087746660540 14416781 11450970 556385-3620 983435564 556105-0351 556548-7096 0741464-4 0368968-3 20758600 19409775 990238367 1878245-0 960204573 25044479 25044533 25044630 25044649 45732819 556262-5052 20-4505209 556707-0007 98-0494191 98-0522510 13-2620517 13-3936719 22-3828960 80-0256860 13-4034430 13-4035530 59-3754944 30-0093378 59-3574946 30-0093378 59-3670973 59-3670971 59-3754949 161671300 52-2098266 94-3394914 79-229-571 94-3097435 94-3342617 003733720 003603343 556012-7713 556006-0658 556067-9697 556042-5877 556556-2658 556662-4713 556709-9519 556637-5597

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

% of share capital 100.0 100.0 100.0 100.0 80.0 100.0 100.0 100.0 100.0 100.0 100.0 51.0 100.0 100.0 60.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 75.3 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 80.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 70.0

Number of % of participations/ votes1) shares

Reported value SEK M

10,000

2.5

28,000

819.6

4)

2)

5)

27


Notes to the Financial Statements

NotE 35 cont.

14. 15. 16. 17. 18.

19. 20.

28

Privata Affärer Förlag AB Resumé Förlag AB Spoon Publishing AB Swebrand Publishing AB vetgirig internet quiz Stockholm AB Bonnier Tyskland Holding AB Coolangatta AB Cooranga AB Giftsvampen i Stockholm AB Nordic Broadcasting Oy MTV Oy Alexpress Oy MTV Tekniikka Oy Subtv Oy Suomen Kansallisviestintä Oy Suomen Uutisradio Ab, Oy Suomen Sävelradio Oy TV4 AB Blipworld AB Bloggvärlden Svensson & Alsén AB C More Group AB C More Entertainment AB C More Entertainment Oy Nordisk Television AB TV Fakta Nordic Oy TV4 Sport AB TV4 Stockholm AB TV4 Sverige AB TV4 Uppland AB TV4 Vision AB TV4 Väst AB TV4 Öst AB Sural AB Tidnings AB Marieberg Bold Printing Group AB DNEX Tryckeriet AB Tryckfast AB Sydsvenskan Tryck AB Bonnier Dagstidningar AB Netsu AB Bonnier Office AB Citypaketet Sweden AB Citypaketet KB CityXpress i Sverige AB Dagens Nyheter, AB Bokförlaget DN, AB Dagens Nyheter Annonsförsäljning, AB DN På Stan, AB Marieberg International AB Diena, AS Dienas Zurnali, SIA Laikraksts Diena, SIA Abonesanas centrs Diena, SIA Mukusalas Druka, SIA Mukusalas Maja, SIA Poligrafijas grupa Mukusala, SIA Regionala prese Diena, SIA Bauskas Dzive, SIA Staburags, SIA Tirdzniecibas agentura Diena, SIA Fordonstorget AB Kvällstidningen Expressen, AB Generate Sweden AB GT/Göteborgs-Tidningen AB Kvällsposten AB

Corp. Reg. No. 556529-6851 556150-5180 556561-8989 556444-7489 556733-6713 556548-5207 556748-2632 556748-2624 556064-0723 1882626-5 1093944-1 0722557-9 0414814-1 0224147-3 0810342-6 1042680-6 0577699-1 556242-7152 556630-6808 556728-0085 556630-5180 556053-7309 1530976-4 556273-6032 1956124-6 556246-8164 556423-2626 556289-4237 556496-0630 556417-6898 556491-8422 556166-2023 556158-9531 556002-8796 556312-2554 556246-8180 556304-8676 556256-4038 556414-2155 556692-8049 556162-7745 556621-8300 969711-9817 556334-7953 556246-8172 556334-7961 556320-6704 556246-8156 556759-0379 000308610 000335677 000380449 000375749 000357436 000380450 000377124 000363887 360301016 870300053 000366088 556655-4555 556025-4525 556657-0049 556284-8720 556051-3599

Reg. office Stockholm Stockholm Stockholm Stockholm Huddinge Stockholm Stockholm Stockholm Stockholm Helsinki Helsinki Helsinki Jyväskylä Helsinki Helsinki Helsinki Hyvinkää Stockholm Stockholm Stockholm Stockholm Stockholm Helsinki Stockholm Helsinki Stockholm Stockholm Malmö Uppsala Stockholm Gothenburg Västerås Stockholm Stockholm Stockholm Stockholm Stockholm Malmö Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Riga Riga Riga Riga Riga Riga Riga Riga Bauska Aizkraukle Riga Stockholm Stockholm Stockholm Gothenburg Malmö

% of share capital 100.0 100.0 70.0 100.0 51.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 74.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 97.4 100.0 100.0 100.0 66.7 66.7 100.0 100.0 100.0 100.0 100.0 100.0 91.2 100.0 100.0 100.0 100.0 100.0 100.0 100.0 51.0 51.6 100.0 66.7 100.0 91.0 100.0 100.0

Number of % of participations/ votes1) shares

Reported value SEK M

250,000 1,000 1,000 200,000 800,002

34.8 0.1 0.1 24.5 4,668.3

1,000 29,842,230

8.5 3,000.0

6)

7)

78,9

8) 8)

9)

8)

bonnier ab annual report

2008


Note 35 cont.

Corp. Reg. No. 556646-7113 556206-2868 969697-5862 556005-5104 556102-7169 556320-6381 556631-7433 556002-7608 556743-5580 556169-8126 556766-3686 556754-8796 556680-7276 556685-8667 556620-7105 938200-2393 556622-0751 556335-2722 556230-7792 556722-4398 556674-9387

Segelman Retail Television AB Spörten, AB Koll KB Pressens Bild Images AB Bildhuset Images i Stockholm AB Stockholm City i Sverige AB Stockholm City i Sverige Försäljning AB Sydsvenska Dagbladets AB City Malmö Lund AB Fastighets AB Nr 48 Cronholm Sydsvenskans Konstförvaltning AB Kompetens i Skåne AB Look Media AB Manolo AB Skånemedia AB Otto Marsvin KB SkåneMedia Försäljnings AB Sydsvenskan Annons AB Sydsvenskan Innovator AB Comzo AB 21. GI Viktkoll Sverige AB Total

Reg. office Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Malmö Malmö Malmö Malmö Malmö Malmö Malmö Kristianstad Kristianstad Kristianstad Malmö Malmö Stockholm Stockholm

% of share capital 91.0 100.0 66.7 100.0 100.0 100.0 100.0 90.5 100.0 100.0 100.0 100.0 100.0 50.1 100.0 100.0 100.0 100.0 100.0 100.0 71.2

Number of % of participations/ votes1) shares

Reported value SEK M

2)

8)

10)

16,326.2

1) In

the event of deviation from equity share. 2) The  Bonnier AB Group has conducted an options agreement pertaining the remaining shares, which means that the Bonnier AB Group in practice carries the financial benefits and risks for 100 percent of the shares. Accordingly, the holding is reported in the consolidated financial statements without minority interest. 3) Of which 30 percent is owned by Bonnier Business Press AB. 4) Owned by 50 percent by Bonnier Publications A/S and by 50 percent by Benjamin Media A/S. The total indirect minority is 24,7 percent. 5) Owned by 66 percent by Laredius & Daniels Media AB and by 34 percent by Bonnier Tidskrifter AB. 6) Owned by 28 percent by MTV Oy, 20 percent by Alexpress Oy, 13 percent by MTV Tekniikka Oy and 13 percent by Suomen Kansallisviestintä Oy. 7) Of which 24 percent is owned by MTV Oy. 8) Is 33.3 percent owned by AB Dagens Nyheter and 33.3 percent owned by Sydsvenska Dagbladets AB. 9) Is 51 percent owned by Laikraksts Diena, SIA and 49 percent owned by AS Diena. 10) Is 41.3 percent owned by TV4 AB and 29.8 percent owned by AB Kvällstidningen Expressen.

Note 36 Joint ventures Corp. Reg. No.

Indirect holdings Cappelen Damm Holding AS Cappelen Damm AS Askeladden Förlag AB Ex Libris Forlag AS Mapsolution AS

991172041 948061937 556481-8259 981037316 974682680

Sentraldistribusjon ANS Damm Direkte AS Larsforlaget AS Tanum AS Tanum-Gruppen AS

953582449 984058128 987204958 914752876 930771813

Reg. office

% of share capital

Oslo Oslo Gothenburg Oslo Oslo

50.0 100.0 100.0 100.0 100.0

Oslo Oslo Oslo Oslo Oslo

100.0 100.0 66.0 100.0 100.0

The above companies are joint ventures where Bonnier AB is joint owner under the collaboration agreement on determining influence. Cappelen Damm Holding AS runs publishing operations in Norway. The joint-owned companies are reported in the Bonnier AB Group in accordance with the proportional method. The Group’s share of the average number of employees, salaries etc. in the joint venture companies appears from Note 4 and Note 5. The following amount constitutes the Group’s stake in the joint venture companies assets and liabilities and is included in the Group’s balance sheet. The proportional method is applied as of October 31, 2007.

bonnier ab annual report

2008

Group SEK M Fixed assets Current assets Total assets

2008 280.6 329.0 609.6

2007 392.4 447.6 840.0

Shareholders’ equity Provisions Liabilities Total shareholders’ equity and liabilities

63.8 64.0 481.8 609.6

121.5 81.6 636.9 840.0

The Bonnier AB Group has no contingent liabilities for the joint venture companies. On the other hand, the owned share of the joint venture companies’ contingent liabilities and assets pledged is included. The following amount constitutes the Group’s share in the joint venture companies income and expense and is included in the Group’s income statement. Group SEK M Net sales Operating costs Operating profit/loss Income from financial investments Profit after financial items Tax Profit/loss for the year

2008 893.6 –809.9 83.7 –25.3 58.4 –11.9 46.5

2007 160.8 –178.3 –17.5 –3.9 –21.4 0.9 –20.5

29


Notes to the Financial Statements

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

Pertaining to long-term liabilities to financial institutions Real estate mortgages Net assets in subsidiaries Other shares and participations Other pledged assets

Pertaining to current liabilities to financial institutions Net assets in subsidiaries

Total

Group 2008

2007

3.4 3.4

8.5  8.5

775.0 206.8

775.0 485.0 6.0 41.3  1,307.3

32.3 1,014.1

1,231.1 1,231.1 2,248.6

579.1  579.1   1,894.9

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

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

Note 39 Definitions of key ratios Operating capital Total capital employed, less noninterest-bearing provisions and liabilities, excluding accrued interest expense, and less interest-bearing assets and accrued interest income. Net debt/equity ratio (gearing ratio) Interest-bearing provisions and liabilities, including accrued interest expense, and less interest-bearing assets and accrued interest income, divided by shareholders’ equity and minority interests.

Group 2008 28.7 2.3 1,056.0 1,087.0

2007 3.7 1.8 703.5  709.0

Parent Company 2008 2007 936.4 620.8

3.9 940.3

3.4  624.2

(Försäkringsbolaget Pensionsgaranti) pertaining to collateral for pension commitments and contingent liabilities to Swedish Newspaper Publishers’ Association.

Note 40 Information about Bonnier AB and its Parent Company Bonnier AB, corporate registration no. 556508-3663, is a wholly owned subsidiary of Bonnier Holding AB, 556576-7463, a subsidiary of Albert Bonnier AB. The companies’ registered offices are located in Stockholm, Sweden. Bonnier AB is located on Kungsgatan 49 and its postal address is SE-113 90 Stockholm. Bonnier AB conducts operations in the media sphere via subsidiaries. The Parent Company of the largest and smallest group in which Bonnier AB is a subsidiary and in which consolidated accounts are prepared is Albert Bonnier AB, 556520-0341, Stockholm.

Return on operating capital Operating profit (1999–2003 before goodwill amortization on the Marieberg acquisition) as a percentage of the average total assets, less noninterest-bearing provisions and liabilities excluding accrued interest expense, and less interest-bearing assets and accrued interest income. Return on equity Profit before minority participation as a percentage of average share­ holders’ equity and minority interests. Operating margin Operating profit (1999–2003 before goodwill amortization on the ­Marieberg acquisition) as a percentage of net sales. Equity/assets ratio Shareholders’ equity and minority interests divided by total assets.

30

bonnier ab annual report

2008


The income statements and balance sheets will be submitted to the Annual Meeting on May 4, 2009, for adoption.

Stockholm, March 9, 2009

Carl-Johan Bonnier Bรถrje Andersson Chairman Per-Olov Atle

Hans-Jacob Bonnier

Pontus Bonnier First Vice Chairman

Bengt Braun Second Vice Chairman

Jeanette Bonnier

Lars Carlberg

Claes Hallin

Arne Karlsson Carl Wilhelm Ros

Pernilla Strรถm

Jonas Bonnier President

Our audit report was issued on March 23, 2009 ร–hrlings PricewaterhouseCoopers AB

bonnier ab annual report

Bertil Johanson Authorized Public Accountant Partner in charge

2008

Peter Nyllinge Authorized Public Accountant

31


Audit report

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

We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the managing director of Bonnier AB for the year 2008. These ­accounts and the administration of the company and the application of the Annual Accounts Act when preparing the annual accounts and the consolidated accounts are the responsibility of the board of directors and the managing director. Our responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on our audit. We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and significant estimates made by the board of directors and the managing director when preparing the annual accounts and consolidated accounts as well as evaluating the overall presentation of informa-

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

Stockholm, March 23, 2009 Öhrlings PricewaterhouseCoopers AB

32

Bertil Johanson Authorized Public Accountant Partner in charge

Peter Nyllinge Authorized Public Accountant

bonnier ab annual report

2008


10-year Summary From the income statement SEK M Net sales Growth Operating profit1) Operating margin1) Profit/loss after financial items1) Marieberg goodwill Profit/loss before tax Profit/loss for the year 1)

2007 29,207 44.3% 2,710 9.3% 2,425

2006 20,247 1.0% 1,424 7.0% 1,439

2005 20,051 2.5% 2,658 13.3% 2,585

2004 19,564 4.6% 920 4.7% 800

1,533 1,052

2,425 1,542 

1,439 948

2,585 2,167

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

800 439

2003 18,710 6.9% 1,179 6.3% 1,011 –189 822 465

2002 17,498 3.9% 19 0.1% –175 –374 –549 –642

2001 16,839 0.3% 217 1.3% 140 –374 –234 –364

2000 16,787 13.5% 1,612 9.6% 1,532 –374 1,158 645

1999 14,787 7.2% 1,059 7.2% 991 –374 617 235

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

2004 6,179 14.8% 2,776 3,403 12,464 0.82

2003 6,171 19.8% 3,134 3,037 12,559 1.03

2002 5,886 0.3% 2,977 2,909 12,014 1.02

2001 6,279 3.4% 2,719 3,560 12,305 0.76

2000 6,037 26.9% 2,075 3,962 13,857 0.52

1999 5,812 17.2% 2,466 3,346 12,301 0.74

1999–2003 before goodwill amortization on the Marieberg acquisition.

From the balance sheet SEK M Operating capital Return on operating capital Net debt (– = net cash) Shareholders’ equity and minority interests Total assets Net debt2)/shareholders’ equity, ratio 2)

2008 29,517 1.3% 1,816 6.2% 1,533

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

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

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

From change in net debt SEK M Cash flow after operating investments Net acquisitions and divestments of operations, shares and participations Cash flow after acquisitions and divestments Change in net debt (– = increased debt) From business area financial reports SEK M Net sales Bonnier Books Bonnier Magazine Group Bonnier Broadcasting Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Bonnier Evening Paper Other Total Operating profit/loss Bonnier Books Bonnier Magazine Group Bonnier Broadcasting Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Bonnier Evening Paper Other Total

bonnier ab annual report

2008

2008 1,463

2007 922

2006 400

2005 803

2004 1,076

2003 784

2002 231

2001 –109

2000 1,338

1999 608

–2,860 –1,397 –1,999

–8,900 –7,978 –8,371 

999 1,399 885

3,077 3,880 3,571

–602 474 358

–670 114 –87

–312 –81 –258

–364 –473 –644

–720 618 391

296 904 835

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

5,917 6,202 6,038 3,969 2,495 3,678 1,665 –367 29,597

6,314 6,031 5,336 4,019 2,525 3,787 1,642 –447  29,207

5,489 3,971

5,238 3,641

4,573 3,248

4,788 3,003

4,020 2,759

3,839 2,595

3,668 2,657

2,856 2,750

3,595 2,187 3,627 1,453 –75 20,247

3,567 1,876 3,445 1,377 907 20,051

3,491 1,613 3,265 1,302 2,072 19,564

3,561 1,466 3,272 1,190 1,430 18,710

3,407 1,481 3,418 1,118 1,295 17,498

2,765 1,526 3,485 1,259 1,370 16,839

2,304 1,545 3,881 1,452 1,280 16,787

2,142 1,186 3,534 1,427 892 14,787

462 322 936 285 168 –165 125 –317 1,816

607 585 745 254 329 41 92 57 2,710

433 470 116 232 261 –58 101 –131 1,424

457 442 50 216 169 –180 70 1,434 2,658

423 391 –40 276 144 –363 84 5 920

561 367 6 414 127 –229 20 –87 1,179

327 322 18 200 –87 –350 –267 –144 19

278 180 22 –61 –43 93 –181 –71 217

438 324 45 –53 187 740 65 –134 1,612

194 312 –156 234 512 –99 62 1,059

33


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

Annual Review 2008  

This is Bonnier's Annual Review for 2008.

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