Talentum Q3 2005 Interim Report

STOCK EXCHANGE RELEASE

October 26, 2005 at 8.30 pm

TALENTUM OYJ Malminkatu 30 FIN-00100 Helsinki Tel.+358(0) 20 442 40 Fax +358(0)20 4424 130 www.talentum.com 1(14)

TALENTUM'S OPERATING PROFIT FOR JANUARY-SEPTEMBER WAS BOOSTED BY THE SALE OF SATAMA SHARES Talentum’s interim report for January-September 2005 in accordance with IFRS standards - Net sales: EUR 69.0 million (EUR 67.5 million) - Operating profit: EUR 16.5 million (EUR 4.7 million) - Cash flow from business operations: EUR 2.0 million (EUR 3.1 million) - Earnings per share: EUR 0.34 (EUR 0.09) - Earnings per share, ongoing operations: EUR 0.08 (EUR 0.08) - Equity ratio: 42.0% (45.0%) July-September - Net sales: EUR 19.9 million (EUR 19.8 million) - Operating profit: EUR 11.9 million (EUR 0.6 million) The most significant positive factor for the Group’s profitability in January-September was the profit of EUR 10.5 million on the sale of Satama Interactive Oyj's shares recorded in the third quarter of the year. Publishing’s growth of 9.5% and a further improvement in its profitability also made a positive contribution to the Group’s profitability. IAS/IFRS REPORTING In accordance with its previous announcement, Talentum transferred to IFRS (International Financial Reporting Standards) reporting on January 1, 2005. The figures used for comparison purposes are the IFRS-compatible 2004 figures, which were published on April 25, 2005. In accordance with the IFRS terminology, the terminated business areas in this interim report refer to Internet consulting. As announced on September 16, 2005, Talentum Oyj has sold its entire holding in Satama Interactive. As a result of the deal, the contribution of Satama Interactive to the Talentum Group’s consolidated net sales has been eliminated. CEO Harri Roschier: "The third quarter of the year went as planned. Publishing and Direct Marketing performed well, as was expected. Efficiency measures within TV Content Production and Premedia continued, which led to results in these areas remaining modest. "The biggest event was the sale of Talentum’s 60% ownership in Satama Interactive. Talentum had been looking into the possibilities of reducing its ownership of Satama Interactive for quite some time, and now a situation arose in which we received a reasonably good price for our holding, EUR 23 million in cash, and a resulting profit of EUR 10.5 million. "The sale of Satama will give a clearer definition to the Group structure and improve Talentum’s chances of developing and expanding Publishing at a brisk pace. The first step was the acquisition of the Swedish Ekonomi & Teknik Förlag AB at the beginning of October. "E+T’s biggest magazines, Ny Teknik and Affärsvärlden, are so similar to Talentum’s magazines that cooperation will bring operational benefits in both




countries. Talentum’s operations are more diversified in Finland than E+T’s in Sweden, and we believe that book publishing, online operations and job advertising contain elements that will enable the business operations in Sweden to grow. Product development in the future will be implemented more successfully by working together rather than separately. Furthermore, selling advertising internationally is an area where combining will probably bring benefits to both parties. "Integrating the Finnish and Swedish operations will take time, and developing the Swedish operations will require both intellectual and financial investment, but in the medium/long-term we believe that this acquisition will make a very positive contribution to Talentum’s product development and international operations. "The organizational change that took place in publishing last August aims at speeding up growth and will initially incur a certain amount of extra costs. "Our strategic policy at Talentum is to develop operations in such a way that Publishing will grow significantly and that most of our net sales will come from Publishing." CONSOLIDATED NET SALES The change in Talentum’s consolidated net sales for January-September was 2.2% (5.3%). The change in the net sales for the third quarter was 0.2% (5.2%) and amounted to EUR 19.9 million (EUR 19.8 million). Publishing saw the fastest growth in January-September at 9.5% (5.9%). Direct Marketing’s net sales increased by 2.6% (-2.0%). Premedia’s net sales were down -1.3% (+7.4%), and the net sales for TV Content Production were down -7.2% (0.0%). Publishing accounted for 52% (48%) of the consolidated net sales for January-September. TV Content Production accounted for 22% (24%) of the net sales, Premedia for 23% (23%) and Direct Marketing 8% (8%). Inter-group business activities accounted for 5% (4%) of the consolidated net sales. Circulation revenue from Talentum’s magazines was up 1% and advertising revenue 9%. The most significant factor for the growth in advertising revenue was the more than 30% increase in job advertising. The trend in advertising sales is a key variable for Publishing’s financial performance. Magazines and online activities account for about 75% of Publishing’s net sales, of which advertising sales account for 60%. Books and training bring in the remaining 25% of the net sales. Talentum has integrated its business operations portfolio with resolute development work and the implementation of synergy. Both the sale of Satama Interactive and the acquisition of Ekonomi & Teknik Förlag AB are the results of a logical refinement of operations, and these results will open up further avenues for future growth via the chosen business areas. The sale of Satama will allow Talentum to allocate resources more effectively to the chosen business areas. Strong growth will still be sought for Publishing; the acquisition of Ekonomi & Teknik Förlag AB will create the conditions not only for geographical expansion but also for future growth in Publishing via an exchange of skills and joint product development. Investment in the development of Premedia has also been increased. Talentum’s objective is to continue refining the business




operations and synergy potential in a way that will support the company’s growth and create value added for the owners. CONSOLIDATED RESULTS Talentum’s consolidated operating profit for January-September totalled EUR 16.5 million (EUR 4.7 million), i.e. 23.9% (7.0%), and the profit was EUR 15.0 million (EUR 3.8 million), i.e. 21.7% (5.6%). A profit of EUR 10.5 million on the sale of Satama shares recorded in the third quarter of the year has been entered into the operating profit. The operating profit for the third quarter increased to EUR 11.9 million (EUR 0.6 million), i.e. 60.0% of the net sales (3.1%), and the profit was EUR 12.0 million (EUR 0.2 million), i.e. 60.5% (0.9%). Publishing and Direct Marketing performed very well, while the performance of Premedia together with TV Content Production was unsatisfactory. Fluctuations in exchange rates did not have a direct bearing on Talentum’s consolidated net sales or results. The earnings per share for January-September amounted to EUR 0.34 (EUR 0.09); for ongoing operations it was EUR 0.08 (EUR 0.08). CASH FLOW, FINANCIAL POSITION AND BALANCE SHEET The cash flow from business operations in January-September totalled EUR 2.0 million (EUR 3.1 million), and in July-September EUR -2.9 million (EUR -2.1 million). Net financial items and taxes in January-September were EUR –1.4 million (EUR –0.9 million), i.e. -2.0% of the net sales (-1.4%). Expenditure on other investment has increased considerably. The main reason for this was the growth in the proportion of annual statutory employment pension contributions paid in advance in order to obtain an interest rate benefit. The effect of this on the cash flow for the period was EUR –1.2 million (EUR –0.5 million). The balance sheet total on September 30, 2005 was EUR 80.6 million (EUR 77.4 million), of which cash assets totalled EUR 35.0 million (EUR 25.3 million). The Group’s liquid assets are invested primarily in financial instruments and a small amount in shares. The change in cash assets in January-September was EUR 6.6 million (EUR –9.8 million). Talentum Group’s financial standing was good and the equity ratio at the end of the period under review was 42.0% (45.0%). The Group’s equity per share was EUR 0.74 (EUR 0.60) at the end of September. The Group’s interest-bearing liabilities at the end of the period under review stood at EUR 25.7 million (EUR 21.0 million). DEPRECIATION, AMORTIZATION AND WRITE-DOWNS Consolidated depreciation, amortization and write-downs amounted to 3.8% of the net sales (4.6%), which is EUR 3.3 million (EUR 3.9 million).




INVESTMENT Gross investment in fixed assets in January-September totalled EUR 8.2 million (EUR 6.5 million), which is 9.3% (7.7%) of the net sales. Of this amount, EUR 5.8 million (EUR 4.2 million) was invested in Group company shares and acquisitions. Other investment comprised mainly normal replacement and maintenance investment, such as procuring equipment, software and fixtures. PERSONNEL In January-September, the Group employed an average of 1,224 (1,154) persons of whom 16.5% (16.3%) worked abroad. The average number of staff, broken down by business area, was as follows: Publishing 279 TV Content Production 103 Premedia 225 Direct Marketing 305 Internet Consulting 296 Group administration 16 MANAGEMENT During the third quarter, Seppo Summanen, M.Sc. (Technology), EMBA, was appointed a director with responsibility for Premedia and TV Content Production. He is a member of the Talentum Group’s Management Group and Executive Management Group and will report to CEO Harri Roschier. BUSINESS AREAS Publishing Publishing performed very well during January-September. The net sales for publishing in January-September amounted to EUR 35.8 million (EUR 32.7 million), and the operating profit totalled EUR 5.3 million (EUR 3.9 million), i.e. 14.8% of the net sales (11.9%). Publishing was up by 8% during the third quarter and the operating margin was 12.8% (13.3%). Magazine publishing’s net sales in January-September were EUR 26.3 million (EUR 23.8 million); Internet services accounted for around EUR 2.5 million (EUR 2.4 million). The net sales for book publishing amounted to EUR 6.0 million (EUR 5.6 million) and the net sales for training activities were EUR 1.0 million (EUR 1.0 million). Profitability improved significantly in all the areas. The circulation revenue of Talentum’s magazines was up 1% and advertising revenue 9%. The most significant factor in the growth in advertising sales was again the continued upturn in job advertising that started in the latter half of 2004. TV Content Production The January-September net sales of Varesvuo Partners Oy, which concentrates on TV Content Production, fell 7.2% and totalled EUR 15.3 million (EUR 16.5 million). The operating profit was EUR 0.3 million (EUR -0.3 million).




TV Content Production continued to focus on producing TV programmes, as the demand for producing commercials has declined. During the first nine months the production of commercials contracted 22% and TV programme production 5% compared with the previous year. The net sales for the production of commercials in January-September totalled EUR 5.3 million (EUR 6.9 million), and for TV programme production EUR 7.2 million (EUR 7.7 million), and other net sales amounted to EUR 1.8 million (EUR 1.7 million). The net sales for the third quarter contracted 19% and the operating margin was 1.7% (-1.7%). Premedia The January-September net sales for the Premedia business sector totalled EUR 15.6 million (EUR 15.8 million), down 1.3% on the previous year. The operating profit was EUR 0.4 million (EUR 0.8 million). Premedia’s net sales rose by 2.8% in the third quarter. The operating margin was 0.6% (3.8%). Direct Marketing Direct Marketing’s net sales in January-September went up 2.6% and totalled EUR 5.4 million (EUR 5.2 million). The operating profit was EUR 0.9 million (EUR 0.9 million), i.e. 16.0% of the net sales (17.1%). In the third quarter, Direct Marketing’s net sales continued the upturn that began in the previous quarter. The growth in the third quarter was 21%, which was reflected favourably in the profitability. The operating margin in the third quarter was 13.4% (13.1%). Internet consulting On September 16, 2005 Talentum Oyj sold 23,170,000 shares in Satama Interactive Oyj, thereby reducing its holding on that date from about 60 per cent to around 3.8 per cent. 1,000,000 shares were sold in forward trade maturing in December 2005, whereupon the sale of these shares will be finally concluded and Talentum’s holding will be reduced to nil. The average price of the sold shares was EUR 1.0/share i.e. the selling price totalled EUR 23,170,000. A profit of EUR 10.5 million on the sale was recorded by Talentum in the third quarter of the year. Seasonal variations in the media markets There are seasonal variations in the media and media services markets, and business activity is strongest during the last quarter of the year. During the summer holiday season, not all of Talentum’s personnel resources are available and neither are magazines and books published as a rule. Customers usually make the bulk of their purchases in the last quarter of the year. Because of these features that are characteristic of the sector, Talentum’s quarterly net sales and profit in particular can vary considerably; these figures are bigger during the last quarter of the year than in other quarters, while the third quarter is generally lower than the first and second quarters. As a result of the considerable seasonal variations in publishing and especially the book business, the major share of their net sales and an even more significant share of the profit is accrued during the latter half of the year. It is therefore expected that the financial performance at the end of the year will be better than at the start of the year.




IMPORTANT EVENTS AFTER THE PERIOD UNDER REVIEW On October 6, 2005 Talentum Oyj acquired outright the Swedish magazine company Ekonomi & Teknik Förlag AB. The sellers of the company are the private equity fund Strukturfonden, which is managed by the Swedish finance group Catella, and Ingenjörsförlagets Förvaltnings AB, which is owned by the Swedish Association of Graduate Engineers and the Swedish Association of Engineers. The acquisition price was EUR 15.2 million (SEK 142 million), of which EUR 8.8 million (SEK 82 million) was paid in cash and EUR 6.4 million (SEK 60 million) in Talentum Oyj shares. 1,669,641 shares were issued in a targeted issue at a subscription price of EUR 3.855 (not the exact value; the subscription price is the computational average price on the Helsinki Stock Exchange between September 14 and October 4, 2005 weighted by the volume of trading in Talentum shares). The new shares were recorded in the Trade Register on October 13, 2005. The stock offered in the targeted issue represented 3.78% of Talentum’s total shares after the issue and will entitle its owners to a dividend for 2005. The sellers will be entitled to an additional EUR 2.15 million (SEK 20 million) maximum on the basis of net sales for 2005 and EBIT (earnings before interest and taxation) for the fourth quarter of 2005. In order to obtain the maximum additional selling price, the company will have to record net sales of SEK 165 million for 2005 and a profit margin of 13% for October-December 2005. EFFECTS OF THE ACQUISITION OF EKONOMI & TEKNIK FÖRLAG AB Talentum’s strategic position In accordance with Talentum Oyj’s strategic policy, the company structure will be developed by increasing its publishing business significantly so that a major part of consolidated net sales will be generated by publishing. Following this strategy, Talentum sold its holding in Satama Interactive last September. Acquiring Ekonomi & Teknik Förlag AB is a logical step in this direction that will increase publishing and expand it into new market areas. Impact of the acquisition on net sales The acquisition of Ekonomi & Teknik Förlag AB will increase Talentum’s publishing operations by approximately 30%. In 2004, the consolidated net sales totalled EUR 16.6 million. Talentum’s operations in Finland are more diversified than those of E&T Förlag AB in Sweden and we believe that there are elements, for example in book publishing, online operations, and job advertising, that will enable business to expand in Sweden. In addition, international advertising sales is an area where operation will probably benefit both parties. Operational benefits of the deal Ny Teknik and Affarsvärlden, Ekonomi & Teknik Förlag AB’s major magazines, are so similar to those of Talentum that cooperation will generate operational benefits in both countries. Product development will be more successful together than separately. Economic impact of the deal As announced previously, the impact of the acquisition on Talentum’s performance in 2005 will be minor. E+T has recorded losses for the past few years, but much has been done to improve efficiency during the current year. In the opinion of




Talentum, these measures and the forthcoming cooperation with Talentum’s publishing operations will quickly make E+T’s operating result profitable. Talentum aims to promote product development and increase growth significantly, as a result of which the effect on the E+T’s performance will probably continue to be small in 2006. SHARES AND SHARE CAPITAL The entire share capital of Talentum Oyj at the end of the period under review comprised 42,551,176 shares and amounted to EUR 17,891,485.15. On September 30, 2005, Talentum Oyj and its subsidiaries held 181,000 company shares, or the equivalent of 0.4% of Talentum’s share capital and votes. Shareholdings of the Board of Directors and CEO On September 30, 2005, the number of Talentum Oyj shares and options owned by members of the Board of Directors and the CEO personally and through companies in which they have a controlling interest was 120,776, representing 0.3% of the company's total shares and votes. Board of Directors’ authorizations The Annual General Meeting on March 29, 2005 authorized the Board of Directors to decide, within one year of the meeting, on taking out one or several convertible bonds and/or issuing options and/or on increasing the share capital by a rights issue in one or several instalments, provided that the increase is no more than EUR 893,149 and that no more than 2,124,169 new shares are subscribed. The maximum increase in the share capital and the combined number of votes of the shares issued correspond to less than 5% of the company’s registered share capital and of the combined number of votes conferred by the shares. The Board of Directors has the right to decide on the subscription price, the grounds for determining the subscription price, other terms and conditions of the subscription price, and the other terms and factors relating to the rights issue, issuing of options and taking out of a convertible loan. The authorization includes the right to overrule the shareholders' right of pre-emption. The authorization can be exercised only for financing mergers and acquisitions. As of September 30, 2005, the authorization had not been exercised. The Annual General Meeting on March 29, 2005 authorized the Board of Directors to decide, within one year of the meeting, on the acquisition of the company’s own shares using the company’s disposable funds in one or several instalments, but placed a limit of 2,124,169 on the maximum number of shares to be acquired, including the 181,000 shares acquired on the basis of previous acquisition authorizations. The limit is equivalent to less than 5% of the company’s registered share capital and combined votes conferred by the shares. The authorization includes the right to acquire shares in a manner other than in proportion to the shareholders’ holdings. As of September 30, 2005, the authorization had not been exercised. The Annual General Meeting on March 29, 2005 authorized the Board of Directors to decide, within one year of the meeting, on the relinquishment in one or several instalments of the company’s own shares acquired for the company, but placed a limit of 2,124,169 on the maximum number of shares to be relinquished. The limit is equivalent to less than 5% of the company’s registered share capital and combined votes conferred by the shares. The authorization includes




the right to relinquish shares in a manner other than in the proportion to the shareholders’ pre-emptive rights to acquire the company’s own shares. As of September 30, 2005, the authorization had not been exercised. Targeted issue for former owners of Suomen Arvopaperimediat Oy Talentum Oyj acquired the entire shareholding of Suomen Arvopaperimediat Oy, the publisher of the magazine Arvopaperi, pursuant to a share exchange agreement signed on July 9, 2004. Under the share exchange agreement, Talentum Oyj agreed to pay the shareholders of Suomen Arvopaperimediat Oy an additional purchase price provided that the conditions for this set out in the agreement are met. On March 17, 2005, Talentum Oyj and the former owners of Suomen Arvopaperimediat Oy agreed on March 17, 2005 that the additional purchase price set in the share exchange agreement will, contrary to the terms of the agreement, be paid in one instalment, after which the purchase price will have been paid in full. In order to pay the additional purchase price the Board of Directors of Talentum Oyj decided, on the basis of the authorization given by the Annual General Meeting of Talentum Oyj on March 24, 2004, to increase the share capital through a targeted rights issue of shares. In the targeted rights issue the share capital of the company may be increased by a maximum of EUR 28,506.17 by offering for subscription a maximum of 67,796 new shares in the company to the former owners of Suomen Arvopaperimediat Oy. The subscription price was EUR 2.95/share. In the issue targeted at the former owners of Suomen Arvopaperimediat Oy, 67,796 Talentum shares were subscribed. The increase of EUR 28,506.17 in the share capital was entered in the Trade Register on March 23, 2005. Targeted issue for former shareholders of E+T, Ekonomi och Teknik Förlag AB On October 5, 2005 the Board of Directors of Talentum Oyj decided, in order to pay the subscription price for the acquisition of the entire shareholding of Ekonomi och Teknik Förlag AB, to increase the share capital of the company by means of a targeted new issue on the basis of the authorization given by the Annual General Meeting on March 29, 2005. The subscription price was paid by contributions in kind so that the subscribers gave to Talentum Oyj, as consideration for the share subscriptions, their shares in Ekonomi och Teknik Förlag AB. The increase in the share capital was EUR 702,033.64 and the increase in the number of shares was 1,669,641. The increase in the share capital was entered in the Trade Register on October 12, 2005. After the increase, the share capital of Talentum Oyj rose to EUR 18,593,518.79, which is divided among 44,220,817 shares. OUTLOOK Profitability for the final quarter of the year will be good because the end of the year is traditionally strong in publishing at Talentum. The operating profit for the entire year will be unusually good because of the sale of Satama Interactive. GENERAL STATEMENT The forecasts and estimates presented here are based on the management’s current view of economic trends. The actual results may differ considerably from those expected at this time.




Net Sales 7-9/ 2005

7-9/ 2004

1-9/ 2005

1-9/ 2004

1-12/ 2004

1000 EUR Net Sales 19861 19831 68998 67527 96431 Operating profit (adjusted) *) 11935 612 16525 4712 9298 Financial income and expenses -171 -22 -657 30 -295 Share of profit of associates 11 13 131 213 308 Adjusted profit before tax *) 11775 603 15998 4955 9311 Operating profit on discontinued operations -10759 318 -11231 -375 -640 Profit before tax 1016 921 4768 4580 8670 Income tax expense -282 -477 -1263 -1320 -2564 Profit after tax – ongoing activities 734 445 3505 3260 6106 Discontinued operations 11283 -270 11500 584 863 Profit for the period 12017 175 15005 3843 6969 Attributable to: Equity holders of the parent 11720 293 14431 3528 6280 Minority interest 297 -119 574 315 690 Earnings per share (EUR) 0.28 0.01 0.34 0.09 0.15 Earnings per share, ongoing operations (EUR) 0.02 0.01 0.08 0.08 0.14 Earnings per share, discontinued operations (EUR) 0.26 0.00 0.26 0.01 0.01 *) Including discontinued operations




Balance sheet 30.9.2005 30.9.2004 31.12.2004 1000 EUR ASSETS Non-current assets Intangible assets 2657 2638 2569 Goodwill 14769 10856 12748 Tangible assets 7489 9884 9460 Investments in associates 1281 1394 1234 Deferred income taxes 1107 6206 5754 Other long term receivables and

investments 379 1049 1091 Total non-current assets 27682 32027 32855 Current assets Inventories 3525 1929 1878 Trade receivables and other

receivables **) 14436 18196 15314 Cash and cash equivalents 34988 25252 28418 Total current assets 52949 45377 45610 TOTAL ASSETS 80631 77404 78464 **) The receivable on the Satama Interactive Oyj divestment was 1 Meur

SHAREHOLDERS’ EQUITY AND LIABILITIES Shareholders’ equity Share capital 17891 8931 17863 Share premium reserve 166 2632 -4 Fair value reserve and other reserves 15 7100 7 Exchange differences 83 85 84 Retained earnings -1210 2796 -1252 Net income 14431 3528 6280 Total 31376 25073 22977 Minority interest 1832 9594 9875 Total equity 33209 34667 32852 Long term debt 5948 10939 10552 Short term debt 41473 31798 35060 SHAREHOLDERS’ EQUITY AND LIABILITIES 80631 77404 78464 Interest bearing debt 25683 21052 21177




Cash flow statement (1000 EUR) 1-9/2005 1-9/2004 1-12/2004 Profit for the period 15005 3843 6969 Adjustments -6469 4852 7522 Change in working capital -5194 -4724 -1194 Net financial items and taxes -1378 -915 -1045 Net cash from operating activities 1964 3056 12253 Acquisitions of subsidiaries and

associates -6057 -27 -1069 Purchase of other non-current assets -2399 -3534 -4359 Other investments -1188 -882 -411 Sales of subsidiaries 16786 Sales of other non-current assets 324 493 664 Net cash used in investing activities 7466 -3950 -5175 Issue of share capital 0 3 3 Change in short term loans 10000 10000 10000 Change in long term loans -4174 -8963 -8772 Payment of finance lease liabilities -112 -130 -196 Dividends paid and equivalents -6620 -9634 -13869 Other financing items -230 -133 -829 Share repurchases -1724 Net cash used in financing activities -2860 -8857 -13663 Net change in cash and cash equivalents 6570 -9751 -6585 Cash and cash equivalents at beginning

of period 28418 35003 35003 Cash and cash equivalents at end of

period 34988 25252 28418 Including discontinued operations: Cash flow from operating activities 628 596 1070 Cash flow from investing activities -2481 -977 -1385 Cash flow from financing activities -1400 -3163 -3165 Investments (1000 EUR) 1-9/2005 1-9/2004 1-12/2004 Investments in non-current assets, ongoing activities 5332 6120 7544 Investments in non-current assets, discontinued activities 2876 368 1485 Total 8208 6488 9029 % of net sales 9.3 7.7 7.5




1-9/2005 1-9/2004 1-12/2004 Average number of employees Talentum Group ***) 965 897 940 Part-time telemarketing staff 258 257 263 Total 1224 1154 1203 ***) Including employees of discontinued operations 296 268 281 Contingent liabilities (1000 EUR) 30.9.2005 30.9.2004 31.12.2004 Given as security 17220 17220 17220 loans with securities as collateral 3974 4459 4308 Rental and other commitments ****) 16120 6819 22924 Leasing commitments ****) 2690 3219 3361 ****) Including the commitments of discontinued operations 4485 4717 Number of shares Adjusted average number 42354126 41793256 41793256 Number at the end of period 42370176 42298780 42298780 Key figures Earnings per share, adjusted (EUR) 0.34 0.09 0.15 Earnings per share, ongoing activities (EUR) 0.08 0.08 0.14 Earnings per share, discontinued operations (EUR) 0.26 0.01 0.01 Equity per share (EUR) 0.74 0.60 0.54 Equity ratio, % 42.02 45.03 42.34 RECONCILIATION OF NET PROFIT FOR COMPARISON PERIODS 2004 1000 EUR 7-9/2004 1-9/2004 1-12/2004 Profit for the period before minority interest according to FAS -463 1645 4460 Income taxes 59 -2 -228 Leases -2 -12 -12 Employee benefits 31 95 132 Share-based payments -222 -394 -653 Impairment of assets 771 2 511 3270 Profit for the period according to IFRS 174 3 843 6969 Attributable to: Equity holders of the parent 293 3528 6280 Minority interest -119 315 690




RECONCILIATION OF EQUITY FOR COMPARISON PERIODS 2004 1000 EUR 1.1.2004 30.9.2004 31.12.2004 Total equity incl. Minority interest according to FAS 46519 41062 38925 Effects of adopting IFRS: Income taxes 4322 4097 3640 Leases 85 73 71 Employee benefits -721 -625 -588 Financial instruments -1118 -1264 -1312 Impairment of assets -11187 -11187 -11187 Reversal of goodwill amortization 2511 3303 Total equity according to IFRS 37901 34667 32852

STATEMENT OF CHANGES IN EQUITY

1000 EUR Equity

Share premium reserve

Fair value reserve

and other reserves

Exchange differences

Retained earnings

Minority interest

Total equity

Equity 1.1.2004 8759 391 7204 86 8899 12561 37901 Share-based payments 236 158 394 Net income recognized directly in equity

-104

-119

-29

-252

Profit for the period 3528 315 3843 Dividends paid -6221 -329 -6550 Issue of share capital 173 2241 2414 Return of equity -3082 -3082 Equity 30.9.2004 8932 2632 7100 86 6323 9594 34667 Equity 31.12.2004 17863 -4 7 84 5028 9875 32852 Share-based payments 54 36 90 Net income recognized directly in equity 8 64 2 74 Profit for the period 14431 574 15005 Dividends paid -6356 -265 -6621 Issue of share capital 28 170 198 Other -1 0 -8390 -8391 Equity 30.9.2005 17891 166 15 83 13221 1832 33209




TALENTUM GROUP - SUB SEGMENTS 1000 EUR

7-9/ 2005

7-9/ 2004

1-9/ 2005

1-9/ 2004

1-12/ 2004

Net Sales Publishing 10464 9719 35823 32729 48895 TV content production 3959 4856 15341 16533 23168 Premedia 4724 4595 15629 15841 21210 Direct marketing 1753 1449 5369 5234 6885 Internet consulting *****) 6591 4543 19717 16947 23602 Sales within Group -1141 -789 -3396 -2872 -3837 Total 26350 24373 88483 84412 119923 -Discontinued operations -6591 -4543 -19717 -16947 -23602 Adjustments and eliminations 102 1 232 62 110 Total 19861 19831 68998 67527 96431 Operating profit Publishing 1343 1 295 5305 3889 7947 TV content production 68 -566 285 -284 180 Premedia 27 177 425 759 1204 Direct marketing 234 191 861 893 1117 Internet consulting *****) 271 -317 743 375 640 Parent company and group items -496 -167 -1582 -920 -1791 Capital gain on discontinued operations 10488 10488 0 Total 11935 612 16525 4712 9298 Average number of employees Publishing 279 245 268 TV content production 103 120 124 Premedia 225 200 203 Direct marketing 305 304 310 Internet consulting *****) 296 268 281 Group administration 16 17 17 Total 1224 1154 1203 *****) Discontinued operations, gross The interim report is unaudited. FURTHER INFORMATION Harri Roschier, CEO, tel +358 (0)20 442 4220 Kai Järvikare, CFO, tel +358 (0)40 342 4210 www.talentum.com A press conference will be held today on Wednesday 26 October, 2005 for members of the press and analysts at 11.00 am at the hotel Radisson SAS Royal. The address is Runeberginkatu 2, Helsinki. The conference will be held in Finnish. COPIES TO Helsinki Stock Exchange Key media

Talentum Q3 2005 Interim Report

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Transcript of Talentum Q3 2005 Interim Report