North Media

Earnings Release • Nov 3, 2016

3 November 2016
Company announcement no 10-16

North Media Aviser has signed a cooperation agreement entailing that, effective
from 15 November 2016, Politikens Lokalaviser will integrate the regional
editions of Søndagsavisen in parts of North Zealand, in Odense and Horsens in
its own local weekend editions. Søndagsavisen’s other regional editions in
Funen and the Triangle Region in Jutland are closed down. The agreement also
includes cooperation on editorial content and key account sales as well as the
transfer of a number of employees.

In H1 2016, North Media Newspapers implemented some changes to their strategy
to be better equipped for the media market of tomorrow. In the ongoing process
of restoring the newspaper operations’ profitability, the assessment is now
that some editions of Søndagsavisen cannot in their present form be expected to
achieve satisfactory earnings within a reasonable period of time.

Cooperation agreement with Politikens Lokalaviser
As a consequence, North Media Aviser will sign a cooperation agreement with
Politikens Lokalaviser effective from 15 November 2016 regarding the regional
editions of Søndagsavisen in Funen, eastern Jutland and parts of North Zealand.
A number of employees engaged in advertisement sales will be transferred in
this context.

The cooperation agreement means that, in future, Politikens Lokalaviser will
integrate Søndagsavisen's 2, 3V and 6 editions as well as the regional editions
of 21 in Odense and 24 in Horsens in its own local weekend editions.
Søndagsavisen’s other regional editions of 21, 24 and 25 in the rest of Funen
and the Triangular Region in Jutland will be closed down. The agreement also
includes cooperation on editorial content and key account sales.

”Søndagsavisen holds a strong position in the editorial fields within consumer
material and lifestyle. Combined with our local coverage, we will have a strong
editorial profile for the benefit of both readers and advertisers,“ says Søren
Riis, Chief Executive Officer of Politikens Lokalaviser.

North Media Newspapers sharpens focus on Copenhagen
North Media Newspapers’ future focus will be to intensify efforts where a
combined strong market position exists and where there is an opportunity to
create long-term profitable growth and earnings.

Going forward, the eight market-leading local mid-week newspapers issued by
North Media Newspapers in Greater Copenhagen and in Frederiksberg will be
published in close conjunction with the editions of Søndagsavisen that are
issued in the same areas. For advertisers, this constitutes a unique
opportunity to establish rapport – both mid week and weekend – with a
deep-pocketed audience that is interested in what is going on in their local
community as well as in their region.

North Media Newspapers will launch a string of commercial activities, including
a completely new digital strategy aimed at local Copenhagen advertisers. This
strategic work will be initiated now, and expectations are that it will be
fully implemented some time during H1 2017.

”North Media Newspapers’ unique market position in Copenhagen holds a huge
potential, and offers to both local and regional retailers, chains and shopping
centres are to a much higher degree to cater for the advertisers’ needs. One of
the means to do this is by thinking all of North Media Newspapers’ media
platforms into one package. At the same time we need to focus on developing new
digital products that will be tailored together with local partners. The
objective is to gain a larger share of the Copenhagen advertisement market and
so boost profitability considerably," says Gorm Wesing Flyvholm.

Adjustment of North Media Newspapers’ earnings expectations for the financial
year 2016
The Søndagsavisen editions that are covered by the cooperation agreement and/or
will be closed down, accounted for DKK 49 million in annual revenue in 2015.

Revenue of North Media Newspapers is now expected to range from DKK 170 million
to DKK 175 million for 2016 compared to previously from DKK 175 million to DKK
185 million. Expectations are now that North Media Newspapers’ EBIT before
special items will be a loss ranging between DKK 33 million and DKK 37 million.
The previous EBIT expectations before special items in North Media Newspapers
was a loss ranging between DKK 30 million and DKK 35 million.

The cooperation agreement involves special items such as costs related to the
transfer of staff in the total amount of approx DKK 3 million.

The Group’s Interim Management Statement for Q3 2016 is released today, 3
November 2016.

For further information, please contact Gorm Wesing Flyholm, Chief Executive
Officer of North Media Aviser A/S, at +45 25 45 67 74 or Søren Riis, Chief
Executive Officer of Politikens Lokalaviser A/S, at +45 20 33 10 20.

Yours faithfully
North Media A/S

Kåre Wigh
Group Executive Director & CFO

This Company announcement no 10-16 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.