North Media

Earnings Release • Nov 3, 2016

3 November 2016
Company announcement no 11-16

The Group’s earnings expectations for 2016 upheld and specified

In Q3 2016, developments in FK Distribution’s revenue are still affected by the
loss of Coop as a customer from 1 January this year, although efficiency
measures and cost savings curb the adverse impact on performance.

At North Media Newpapers, the new Executive Board is concentra­ting fully on
making Søndagsavisen more commercially orienta­ted and on restoring
profitability.

North Media Online’s revenue growth is underperforming, although it is positive
for future developments that BoligPortal succeeded in restoring its revenue
growth in Q3.

BEKEY’s revenue growth too is lower because customers have postponed project
start-ups and tenders, yet BEKEY still holds a very strong position in the
emerging electronic key systems market and now has products that are in
operation or being tested in Denmark, Sweden, Norway, Finland and the USA.

All in all, the Group’s revenue has not developed as expected this year, on the
other hand the process of optimising the business segments has been successful.
This is why we uphold and specify the Group’s earnings expectations.

Group financial highlights from Q3 2016

-- Group revenue reached DKK 208.0 million (2015: DKK 228.0 million), which is
9% down on last year.
-- EBITDA was negative by DKK 2.4 million (2015: a negative DKK 1.2 million).
-- EBIT before special items was a loss of DKK 11.8 million (2015: a loss of
DKK 13.0 million).
-- Securities yielded a positive return of DKK 6.2 million in Q3 2016. The
Group’s total portfolio of securities amounted to DKK 220.3 million at 30
September 2016.
-- The Group’s net interest-bearing cash position was DKK 91.8 million at the
balance sheet date, and its capital resources amounted to DKK 269.4
million. Consequently, the Group's financial resources remain strong.

Earnings expectations for 2016 upheld

Expectations for group earnings and performance for the financial year 2016 are
specified. In 2016, group revenue is expected to be realised between DKK 850
million and DKK 870 million. EBIT before special items is now expected to be a
loss ranging between DKK 34 million and DKK 52 million. The operations divested
and restructured in North Media Aviser A/S are expected to generate an income
from net special items of around DKK 4.0 million for the financial year. The
profit earned from divesting the Group’s stake in A/S Vestsjællandske
Distrikts-blade totals DKK 27.2 million and is recognised as a share of
profit/loss from associates.

FK Distribution in Q3 2016

-- Revenue was DKK 141.7 million (2015: DKK 156.4 million), down 9%. Compared
to last year, revenue has been adversely affected by the loss of Coop as a
customer from 1 January 2016, while general market conditions have kept
steady.
-- EBITDA reached DKK 9.1 million (2015: DKK 12.5 million).
-- EBIT before special items was DKK 5.5 million (2015: DKK 6.8 million), thus
producing a profit margin of 3.9% (2015: 4.3%).
-- At 30 September 2016, 672,000 households had joined the NoAds+ arrangement.
The number continues to go up
although more slowly as marketing efforts are now targeting the No Ads
Please households.

North Media Newpapers in Q3 2016

-- Revenue was DKK 36.7 million (2015: DKK 43.7 million), down 16%.
-- EBITDA was negative by DKK 8.0 million (2015: a negative DKK 8.3 million).
-- EBIT before special items was negative by DKK 11.1 million (2015: a
negative DKK 11.6 million).
-- In Q2 2016, some local editions of Søndagsavisen were divested and a major
reorganisation of North Media Newpapers took place. This has had a negative
effect on developments in revenue. Gorm Wesing Flyvholm took up the
position as Chief Executive Officer of North Media Aviser A/S from 1
September 2016. Focus is now on formulating a new stra­tegy to restore
profit from the Group's newspaper operations.
-- A cooperation agreement was signed 3 November 2016 with Politikens
Lokalaviser A/S.

North Media Online in Q3 2016

-- Revenue was DKK 25.4 million (2015: DKK 24.0 million), up 6%.
-- EBITDA was negative by DKK 1.0 million (2015: a negative DKK 3.6 million).
-- EBIT before special items was negative by DKK 1.3 million (2015: a negative
DKK 3.9 million).
-- Revenue from online activities generally developed more weakly in Q3 2016
than expected, which is not satisfactory.

BEKEY in Q3 2016

-- Revenue was DKK 4.2 million (2015: DKK 3.9 million), up 8%.
-- EBITDA was negative by DKK 6.5 million (2015: a negative DKK 5.1 million).
-- EBIT before special items was negative by DKK 6.5 million (2015: a negative
DKK 5.2 million).
-- Revenue developed more weakly than expected due to the postponed start-up
of the contract won in Malmö, Sweden. Also, financial performance is
adversely affected by DKK 3.0 million in partial write-down of inventories.

The Interim Management Statement for Q3 2016 in its full is attached.

For further information, please contact:

-- Kåre Wigh, Group Executive Director & CFO,
mobile +45 25 65 21 45
-- Mads Dahl Andersen, Chief Executive Officer of FK Distribution,
mobile +45 20 42 09 85
-- Gorm Wesing Flyvholm, Chief Executive Officer of North Media Aviser,
mobile +45 25 45 67 74
-- Henrik Løvig, Chief Executive Officer of North Media Online,
mobile +45 61 79 94 31
-- Søren Holmblad, Chief Executive Officer of BEKEY,
mobile +45 25 65 21 30.

This Interim Management Statement for Q1 2016 has been prepared in Danish and
English. The Danish text shall be the governing text for all purposes and in
case of any discrepancy the Danish wording shall be applicable.