North Media

Board/Management Information • Jun 28, 2016

28 June 2016

Company announcement no 07-16

North Media Aviser is giving notice of the cutting of 25-30 jobs that are
related primarily to the main product, Søndagsavisen. The restructuring will
reduce costs by approx DKK 20 million. At the same time, Chief Executive
Officer of North Media Aviser A/S, Arne Ullum, resign and will be replaced by
Gorm Wesing Flyvholm, who is the former Executive Officer of Berlingske Media’s
local newspaper business, among others.

In May 2016, North Media Aviser divested six local editions of Søndagsavisen
and its equity interest in A/S Vestsjællandske Distriktsblade to Sjællandske
Medier. This way, North Media Aviser actively assisted in the consolidation
that is intended to increase scale economies, synergies and profitability of
the newspaper industry.

To further improve the basis for value creation at North Media Aviser, the
activities of Søndagsavisen will be restructured. The key steps in the
restructuring process are to intensify focus on sales activities and reduce the
newspaper’s cost base. The other newspaper activities, including the eight
local Copenhagen newspapers and Ugeavisen Nordsjælland and Helsingør Dagblad,
will not be directly affected by the changes.

Reduction in costs

As part of the restructuring of Søndagsavisen, expectations are that 25-30 jobs
will be cut. The jobs are widely spread over most functions of Søndagsavisen,
in staff functions and to a great extent in management. Overall, this
restructuring will result in special cost items of approx DKK 8 million in 2016
and a reduction in annual capacity costs by approx DKK 20 million.

New Chief Executive Officer of North Media Aviser

As part of the restructuring process, Arne Ullum will resign as Chief Executive
Officer of North Media Aviser A/S and as member of the Executive Board of North
Media A/S and be replaced by Gorm Wesing Flyvholm. Gorm Wesing Flyvholm will
take up his position on 1 September 2016. Also, Sales and Marketing Executive
Michael Garver Burgaard will be appointed Chief Executive Officer of
Søndagsavisen A/S. Until Gorm Wesing Flyvholm takes up his position, Michael
Garver Burgaard will serve as acting Chief Executive Officer of North Media
Aviser A/S.

”We have to acknowledge that our current strategy of focussing on growth in
readership and resulting advertisement sales no longer works - the past two
years' decline seen in the print market has led to a dramatic change in the
conditions for free newspapers. In future, the strategy needs to be of a more
directly commercial nature, and in that context I have recommended to the Board
of Directors to appoint an executive officer whose focus is more commercial
than mine,” says Arne Ullum.

Arne Ullum will resign as Chief Executive Officer of North Media Aviser A/S and
as member of the Executive Board of North Media A/S effective from 1 July 2016,
and he will for some time after that perform strategic tasks for North Media's
Board of Directors.

”Arne has since 2009 been a valued member of the Group’s Executive Board and a
valued Chief Executive Officer of the newspaper business. He has headed the
efforts of establishing the new structure for Søndagsavisen that we present
today. Of course, we are sorry that Arne has informed us that he thinks new
people should be called in to take the next step, but we respect his decision.
At the same time, we are pleased that Gorm Wesing Flyvholm will join us as new
Chief Executive Officer of North Media Aviser. With his strong management and
sales competencies, we have the management team to restore Søndagsavisen's
earnings capacity determinedly and efficiently," says Richard Bunck, Chairman
of the Board of Directors.

Intensified focus on sales

Besides cost savings, Søndagsavisen will launch a string of commercial
activities to boost sales. The intention is to capitalise on the unique market
position in Northern Zealand, among other areas, and offers to that area’s
large local retailers, chains and shopping centres are to be tailored more to
customer needs. One of the means to do this is by thinking all of the newspaper
business’ media platforms into one package. This will create the basis for
Søndagsavisen once more beating the market.

”I believe there is an under-penetrated local and regional market that the
Group’s newspapers may tap into. This requires innovation, but also going back
to the cornerstones that Søndagsavisen has being relying on for many years. I
firmly believe that, with a serious and targeted effort based more on the
advertisers' need to attract customers, there is a good chance of providing
fresh impetus and generating profitable operations in spite of difficult
markets," says Gorm Wesing Flyvholm.

Søndagsavisen will still have 23 regional editions, eight of which are
published by Sjællandske Medier.

”This puts Søndagsavisen in a unique position with regional advertisers who,
with our newspaper, will be able to reach all of their customers better and
cheaper,” says Gorm Wesing Flyvholm, who also intends to strengthen the
commercial cooperation between Søndagsavisen and the Group’s local newspapers
which cover, for example, the Greater Copenhagen area, including Frederiksberg
and Northern Zealand.

Unchanged earnings expectations for the financial year 2016

Revenue of North Media Aviser is expected to continue to range from DKK 185
million to DKK 195 million. Expectations are that North Media Aviser’s EBIT
before special items will remain unchanged at a loss between DKK 30 million and
DKK 35 million. The restructuring of Søndagsavisen will also result in special
cost items in the region of DKK 8 million in 2016.

The original expectations of group revenue between DKK 865 million and DKK 915
million and EBIT before special items between a negative DKK 25 million and a
negative DKK 55 million are maintained as well.

For further information, please contact Chief Executive Officer of North Media
Aviser A/S Arne Ullum at +45 21 63 22 27, Group Executive Director & CFO Kåre
Wigh at +45 25 65 21 45 or Gorm Wesing Flyvholm at +45 25 45 67 74.

Yours faithfully

North Media A/S

Kåre Wigh

Group Executive Director & CFO

This Company announcement no 07/16 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.