Eniro Group

Interim / Quarterly Report • Jul 16, 2014

Weak sales performance in Sweden had a negative impact on revenue and earnings for the quarter. Organizational changes and actions have been carried out. Changed full-year guidance.

Second quarter: April–June 2014

• Revenue for Mobile search grew organically by 58% (101%).
• Total multiscreen revenue (Desktop search, Mobile search and Campaign products) decreased organically by 5% (2%). Revenue was negatively affected by weak sales in Sweden.
• 27% of total searches performed via mobile channel in Q2.
• Organic revenues decreased by 10% (-4%). Total operating revenue amounted to SEK 793 M (893).
• EBITDA amounted to SEK 194 M (234) and includes a capital gain of approximately SEK 6 M from the sale of Krak Markedsdata and revaluation of provisions for synthetic shares totaling approximately SEK 4 M. Adjusted EBITDA amounted to SEK 187 M (247). The adjusted EBITDA margin was 23.6% (27.7%).
• Income for the period amounted to SEK 73 M (80), and earnings per common share were SEK 0.59 (0.66).
• Operating cash flow improved by SEK 71 M to SEK 174 M (103). During the quarter, SEK 186 M in bank borrowings was repaid.

Six-month period: January–June 2014

• Multiscreen revenues decreased organically by 1% (3%). Total operating revenue amounted to SEK 1,585 M (1,779), a decrease of 11% (-9%).
• EBITDA amounted to SEK 421 M (404), corresponding to an EBITDA margin of 26.6% (22.7%). Adjusted EBITDA amounted to SEK 356 M (430).
• Income for the period was SEK 144 M (169), and earnings per common share were SEK 1.18 (1.41).
• Operating cash flow was SEK 121 M (191).

Events during the second quarter

• As a result of weak sales performance in Sweden, Eniro has carried out management changes. Stefan Kercza, President of Eniro Denmark, has been named as acting President of eniro.se.
• Eniro further concentrated its business on digital local search with the divestment of Krak Markedsdata in Denmark. The capital gain amounted to approximately SEK 6 M.

Events after the end of the reporting period

• Eniro has signed an agreement to acquire Idium, one of the leading media agencies in Norway. The acquisition complements and strengthens Eniro's offering in the Campaign products revenue area.
• As a result of weak earnings performance during the second quarter, the full-year forecast has been revised. The new forecast for the full-year 2014 is for adjusted EBITDA of SEK 850 M.

Eniro is a search company that aggregates, filters, organizes and presents local information. Our growth is driven by users' increasing mobility and multiscreen behavior, where we are at the forefront with modern technical solutions. For more than 100 years Eniro has helped people find local information and companies find customers. Today it is a multiscreen solution – our users search for information using their smart phones, tablets and desktops. Mobile advertising is today the fastest growing part of Eniro's business. Eniro is the local search engine. A smart shortcut to what you need, no matter where you are or where you are going. Eniro – Discover local. Search local.

Eniro AB Gustav III:s Boulevard 40 Solna SE-169 87 Stockholm, Sweden Telephone: +46 8 553 310 00 E-mail: info@eniro.com

Website: www.enirogroup.com Corporate identity number: 556588-0936

CEO's comments: Sweden a disappointment during the quarter. Actions taken, and changed full-year guidance.

"Eniro is a search company that filters, organizes and presents local information and makes it accessible for the eight million unique visitors who use Eniro's search service every week. The strategy of providing the best search service for local information in the growing multiscreen channels remains firm."

The second quarter was a disappointment and blip in the curve of Eniro's work on returning to growth. Performance for eniro.se, which accounts for roughly 25% of Eniro Sweden's total revenue, has not met our expectations. This has had a negative impact on our multiscreen business and on Desktop search in particular. To optimize sales in the coming quarters, a decision was made during the first quarter to await new launches before the sales force begun its broader customer penetration campaign. The decision to wait with the cultivation of existing customer until the second and third quarters has had a positive effect on sales in all markets except Sweden. In Sweden, the number of new customers increased towards the end of the quarter, while sales to existing customers have shown somewhat weaker performance. I can ascertain that the new services that were launched at the end of the first quarter have been wellreceived and that use of our search services increased during the quarter.

A number of measures have been taken to get sales back on track for eniro.se. Extensive changes in the price and packaging structure are being launched in conjunction with the start of sales in August. In addition, management changes and a reorganization of the Swedish operations have been carried out. To facilitate the implementation of necessary measures and activities, the Swedish organization has been split into two parts, where Stefan Kercza, President of Eniro Denmark, has taken over responsibility also for eniro.se until further notice. We believe that the actions we have taken will lead to improved performance during the second half of the year.

Sales performance in Norway, Denmark and Poland develops according to plans. The Campaign products revenue stream continued to grow during the quarter at the same time that the decline for the mature segments Voice and local printed directories is continuing as previously communicated. Multiscreen revenue as a share of total advertising revenue continues to rise and is now 87%.

We are continuing to run the business in accordance with our long-term growth strategy. As a consequence of Eniro's focus on digital local search services, Krak Markedsdata in Denmark was divested during the quarter. Through the sale of Krak Markedsdata, I believe that we have completed the realignment of our brands that we have been carrying out in recent years.

To strengthen Eniro Norway's position in Campaign products, Eniro has signed an agreement to acquire Idium, one of the leading media agencies in Norway. The acquisition gives Eniro a stronger product portfolio and will give rise to cost synergies. Idium is expected to contribute approximately SEK 35 M in revenue in 2014 and EBITDA of SEK 2 M. The purchase price amounts to SEK 35 M. It is important to stress that Eniro's revenue growth going forward – despite this acquisition – will primarily be organic.

Eniro is working to return to growth. We believe that the actions taken during the second quarter will have an effect during the second half of the year. Despite this it will not be possible to fully compensate for the weak earnings performance during the second quarter, and as a result we have adjusted our earnings forecast for 2014.

Solna, July 16, 2014 Johan Lindgren, President and CEO

Important events and activities

Second quarter 2014

Eniro carries out management changes in the Swedish operations

In response to weak sales performance in Sweden, Eniro has made management changes. Stefan Kercza, President of Eniro Denmark, has been appointed as acting President of the Swedish operations.

Eniro divests Krak Markedsdata (KMD) in Denmark As part of its continued efforts to concentrate its business on digital, local search, Eniro divested the Danish B2B service Krak Markedsdata (KMD). Eniro's revenue from KMD in 2013 amounted to approximately SEK 14 M, with EBITDA of approximately SEK 2 M. The sale generated a capital gain of approximately SEK 6 M.

Launch of new app for Eniro På Sjön and commercialization of Eniro Navigation

During the quarter Eniro launched an entirely new app for Eniro På Sjön in Sweden and Norway. The app, which is available for free download, offers new functionality and enables users to buy add-on services and sea charts. Eniro Navigation, which since its launch in March has been downloaded approximately 250,000 times, has been upgraded and commercialized. The local search function is now integrated into the app what makes all companies in Eniro's database searchable in the navigation interface.

Ratings and reviews integrated in the main sites alongside expansion of booking function To improve user-friendliness and the content of Eniro's main sites, the separate review sites – Rejta (Sweden), Det Hitter (Denmark) and Anbefalt (Norway) – have been integrated with the respective markets' main sites. In addition, Eniro has signed a partnership agreement with Boka Direkt in Sweden. Through the agreement, small- and medium sized companies within some 30 industries becomes bookable through eniro.se.

After the end of the reporting period

Eniro signs agreement to acquire Idium, one of the leading media agencies in Norway

The acquisition of Idium complements and strengthens Eniro's offering in the Campaign products revenue area. Eniro's share of revenues from Idium in 2014 is expected to amount to approximately SEK 35 M, with EBITDA of approximately SEK 2 M. Eniro Norge AS will pay a total consideration of approximately SEK 35 M, of which cash consideration upon acquisition date, beginning of August, will amount to approximately SEK 22 M.

Revised earnings forecast

As a result of weak earnings performance during the second quarter, the full-year forecast has been revised. Adjusted EBITDA is expected to amount to approximately SEK 850 M.

Second quarter 2014

Revenue

Total operating revenue decreased by 11% to SEK 793 M (893). Organic revenue decreased during the quarter by 10% (-4%). Changed publication dates for directories had a minor effect on total revenue compared with a year ago, while currency effects were positive, by SEK 7 M.

Multiscreen

Revenue from multiscreen channels (Desktop search, Mobile search and Campaign products) decreased organically by 5% (2%), to SEK 557 M (608). Multiscreen revenue as a share of total advertising revenue (excluding Voice) was 87% (86%).

Mobile search revenue grew by 58% to SEK 104 M (66). Organic revenue also saw an increase, by 58% (101%). The share of searches in the mobile channel, where Eniro has a strong market position, continues to grow and currently accounts for 27% of total unique browsers (UB). Desktop search revenue amounted to SEK 393 M (483), corresponding to an organic decrease by 18% (-4%). Campaign products reported revenues of SEK 60 M (59), an increase of 2%. Adjusted for divestments of InTouch and Scandinavia Online AS in Norway organic revenues grew 28% (1%).

Print/Voice

In line with the company's projections, the Print and Voice revenue areas continued to contract as a result of the shift towards digital search channels. The decision to stop publishing the regional printed directories contributed to lower Print revenue. Changed publication dates compared with the corresponding period a year ago had a minor effect on revenue during the quarter. Print revenue during the second quarter amounted to SEK 61 M (80), a decrease of 24%. Local directories, which continue to have high use and a stabilized pace of decline, accounted for 83% (75%) of print revenue for the quarter. Print revenue decreased organically by 24% (-26%). The forecast for total Print revenue of approximately SEK 250 M remains.

Market volumes for directory information services continued to fall as a result of greater digitalization. Operating revenue for Voice decreased during the second quarter by 16%, to SEK 155 M (184). Organic revenues also decreased, by 17% (-11%).

Revenue and result

	Apr-Jun	Apr-Jun		Jul-Jun	Jan-Dec
SEK M	2014	2013	%	2013/14	2013
Operating revenue	793	893	-11	3 466	3 660
EBITDA	194	234	-17	866	849
Net income	73	80	-9	209	234
Operating cash flow	174	103	69	259	329
Total operating cost	606	661	-8	2 685	2 828
Interest-bearing net debt	2 232	2 453	-9	2 232	2 340

Earnings

Adjusted EBITDA, excluding restructuring costs and other items affecting comparability, amounted to SEK 187 M (247). Earnings were negatively affected by weak sales performance in Sweden and positively affected by the reversal of provisions for synthetic shares, totaling approximately SEK 4 M. The adjusted EBITDA margin for the quarter was 23.6% (27.7%). Items affecting comparability totaled SEK 7 M and consisted mainly of a capital gain from the divestment of Krak Markedsdata. EBITDA totaled SEK 194 M (234). The EBITDA margin for the quarter was 24.5% (26.2%). Net income for the quarter was SEK 73 M (80).

Cost efficiencies

Eniro has continued to improve efficiency and lower its cost base. Total operating costs were SEK 55 M lower than during the corresponding quarter a year ago. Cost savings for the quarter, adjusted for divested operations, currency effects and thirdparty costs, amounted to SEK 72 M. The cost savings consisted mainly of lower costs for personnel and marketing.

Acquisitions/divestments

As part of its continued efforts to concentrate its business on digital, local search, Eniro has divested the Danish B2B service Krak Markedsdata (KMD). Eniro's revenue from KMD in 2013 amounted to

approximately SEK 14 M, with EBITDA of approximately SEK 2 M. The capital gain recognized during the second quarter amounted to approximately SEK 6 M.

Amortization and impairment loss

Amortizations of the brands Gule Sider and Ditt Distrikt, reclassified during 2013, amounted to SEK 20 M in the second quarter. In addition to this, the carrying amount of the Norwegian Voice brand 1888 was amortized by SEK 8 M during the quarter.

Events after the reporting period

Eniro has signed an agreement to acquire Idium, one of the leading media agencies in Norway. The acquisition complements and strengthens Eniro's offering in the Campaign products revenue area and will give rise to cost synergies. Idium conducts a broad range of business in digital advertising and offers search engine optimization, video and website production, and keyword advertising on Google and Microsoft Bing. Eniro's share of revenues from Idium in 2014 is expected to amount to approximately SEK 35 M, with EBITDA of approximately SEK 2 M. Eniro Norge AS will pay a total consideration of approximately SEK 35 M, whereof approximately SEK 22 M will be paid as cash consideration when finalizing the acquisition in beginning of August.

Six-month period 2014

Total operating revenue decreased by 11% to SEK 1,585 M (1,779). Organic revenue decreased during the period by 8% (-5%). Changed publication dates for directories had a negative effect on total revenue, by SEK 35 M, compared with a year ago. Currency effects were negative by SEK 4 M.

Multiscreen

Revenue from multiscreen channels (Desktop search, Mobile search and Campaign products) decreased organically by 1% (3%), to SEK 1,146 M (1,189).

Mobile search revenue grew by 73% to SEK 202 M (117). Organic revenue growth was 74% (101%). Desktop search revenue amounted to SEK 809 M (956), corresponding to an organic decrease by 14% (-3%). Revenue for Campaign products grew 16% during the period, to SEK 135 M (116), including effect of discontinued operations from InTouch and Scandinavia Online AS in Norway, corresponding to an organic increase of 31% (4%).

Print/Voice

Print revenue during the period amounted to SEK 116 M (178), a decrease of 35%. Print revenue decreased organically by 24% (-36%).

Operating revenue for Voice decreased during the period by 20%, to SEK 292 M (365). Organic revenue also decreased, by 20% (-8%).

Earnings

Adjusted EBITDA, excluding restructuring costs and other items affecting comparability, amounted to SEK 356 M (430). Items affecting comparability totaled SEK 68 M and consisted mainly of capital gains from the divestments of InTouch, Scandinavia Online and Krak Markedsdata. Earnings were charged with approximately SEK 5 M pertaining to provisions for synthetic shares. EBITDA totaled SEK 421 M (404). Net income for the period was SEK 144 M (169).

Cost efficiencies

Total operating costs were SEK 143 M lower than during the corresponding period a year ago. Cost savings for the six-month period, adjusted for divested operations, currency effects and thirdparty costs, amounted to SEK 148 M. The cost savings consisted mainly of costs for personnel and marketing.

Amortization and impairment loss

Amortization pertaining to the reclassified brands Gule Sider and Ditt Distrikt totaled SEK 42 M. In addition to this, the carrying amount of the Norwegian Voice brand 1888 was amortized by SEK 17 M during the period.

Revenue and result

	Jan-Jun	Jan-Jun		Jul-Jun	Jan-Dec
SEK M	2014	2013	%	2013/14	2013
Operating revenue	1 585	1 779	-11	3 466	3 660
EBITDA	421	404	4	866	849
Net income	144	169	-15	209	234
Operating cash flow	121	191	-37	259	329
Total operating cost	1 236	1 379	-10	2 685	2 828
Interest-bearing net debt	2 232	2 453	-9	2 232	2 340

Revenue by category

	Apr-Jun	Apr-Jun		Jan-Jun	Jan-Jun		Jul-Jun	Jan-Dec
SEK M	2014	2013	%	2014	2013	%	2013/14	2013
Desktop search	393	483	-19	809	956	-15	1 687	1 834
Mobile search	104	66	58	202	117	73	372	287
Campaign products	60	59	2	135	116	16	265	246
M ultiscreen	557	608	- 8	1 146	1 189	- 4	2 324	2 367
Print	61	80	-24	116	178	-35	445	507
Other products	20	21	- 5	31	47	-34	81	97
Local search	638	709	-10	1 293	1 414	- 9	2 850	2 971
Voice	155	184	-16	292	365	-20	616	689
Total revenue	793	893	-11	1 585	1 779	-11	3 466	3 660

Organic revenue by category

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jul-Jun	Jan-Dec
%	2014	2013	2014	2013	2013/14	2013
Desktop search	-18	- 4	-14	- 3	n.a.	- 5
Mobile search	58	101	74	101	n.a.	99
Campaign products	28	1	31	4	n.a.	7
M ultiscreen	- 5	2	- 1	3	n.a.	2
Print	-24	-26	-24	-36	n.a.	-29
Other products	-11	-11	-34	- 7	n.a.	1
Local search	- 8	- 2	- 5	- 5	n.a.	- 5
Voice	-17	-11	-20	- 8	n.a.	-15
Total organic development	-10	- 4	- 8	- 5	n.a.	- 7

Revenue by country

	Apr-Jun	Apr-Jun		Jan-Jun	Jan-Jun		Jul-Jun	Jan-Dec
SEK M	2014	2013	%	2014	2013	%	2013/14	2013
Sw eden	366	427	-14	721	837	-14	1 603	1 719
ay1) Norw	193	249	-22	429	514	-17	913	998
Denmark	130	114	14	241	223	8	533	515
Finland	49	56	-13	89	109	-18	187	207
Poland	55	47	17	105	96	9	230	221
Total revenue	793	893	-11	1 585	1 779	-11	3 466	3 660

1) Of which SEK 22 M during the second quarter is attributable to divested businesses and 57 million during the full year 2013.

EBITDA by revenue area

	Apr-Jun	Apr-Jun		Jan-Jun	Jan-Jun		Jul-Jun	Jan-Dec
SEK M	2014	2013	%	2014	2013	%	2013/14	2013
Local search	141	181	-22	341	307	11	704	670
Voice	62	73	-15	111	130	-15	232	251
Other	- 9	-20	55	-31	-33	6	-70	-72
Total EBITDA	194	234	-17	421	404	4	866	849
Items affecting comparability
Restructuring costs	- 1	13		3	26		83	106
Other items affecting comparability	- 6	-		-68	-		-67	1
Total adjusted EBITDA	187	247	-24	356	430	-17	882	956

Earnings, cash flow and financial position

Earnings

Operating profit for the half year amounted to SEK 289 M (323).

Net financial items amounted to SEK -100 M (-69). Exchange rate differences had a negative impact on net financial items of SEK 21 M (+20).

Income before tax for the period amounted to SEK 189 M (254). Earnings per common share were SEK 1.18 (1.41).

Taxes

The reported tax cost for the six-month period was SEK -45 M (-85). The underlying tax rate for the period was 23% (22%).

Eniro's taxes are paid primarily in the first half of the year. Accordingly, paid taxes are low during the second half of the year. As a result of substantial tax-loss carry forwards in Sweden, Denmark and Finland, Eniro is expected to have low tax payments in the years immediately ahead.

Investments

During the six-month period, Eniro's net investments in business activities amounted to SEK 74 M (79).

Cash flow

Operating cash flow amounted to SEK 121 M (191) during the period. Cash flow was affected by lower sales and payment outflows that were expensed last year.

Financial position

Eniro renegotiated the company's loans during the second quarter of 2013. All six banks in the company's bank consortium (Danske Bank, DNB, Handelsbanken, Nordea, SEB and Swedbank) are included in the agreement, which is valid for three years with an extension to four years if SEK 800 M of the bank loan is replaced by a corporate bond. The new financing creates greater stability, more flexible repayment terms, and increased operational flexibility.

Upon inception of the agreement, the loan amounted to SEK 3 billion and was provided at interest-rate terms in line with the previous agreement. For the years 2014 through 2016, scheduled repayments will amount to approximately SEK 375 M annually (to be paid semiannually). To date in 2014, through June 30, Eniro has amortized SEK 186 M of the loan. As per June 30 the Group's interest-bearing net debt amounted to SEK 2,232 M (2,453), compared with SEK 2,340 M on December 31, 2013.

At the end of the quarter, outstanding debt under existing credit facilities amounted to NOK 404 M, DKK 81 M and SEK 1,985 M, respectively. At the close of the quarter, Eniro had an unutilized credit facility of SEK 54 M. Cash and cash equivalents and unutilized credit facilities amounted to SEK 185 M.

The Group's indebtedness, expressed as interest-bearing net debt in relation to adjusted EBITDA, was 2.5 (2.5) at the end of the second quarter, compared with 2.4 on December 31, 2013.

Eniro has credit insurance with PRI Pensionsgaranti (PRI) which remains in force until 2015. Total pledged funds amount to SEK 122 M including the return. Eniro pledged SEK 10 M in March 2014 and will pledge an additional SEK 10 M in March 2015.

Shares and holdings of treasure shares

Eniro has two classes of stock: common shares and preference shares. The total number of shares is 102,880,740, of which 101,880,740 are common shares and 1,000,000 are preference shares. The total number of votes is 101,980,740, of which common shares correspond to 101,880,740 votes and preference shares to 100,000 votes. Eniro held 1,703,266 treasury shares on June 30, 2014. The average holding of treasury shares during the period was 1,703,266.

Other information

Forecast for 2014

EBITDA

Adjusted EBITDA for the full year is expected to amount to approximately SEK 850 M.

Investments

Investments are expected to be approximately SEK 150 M.

Capital structure

The long-term target is that net debt in relation to EBITDA should not exceed a multiple of 2.

Dividend and dividend policy

Priority will be given to lowering net debt above paying dividends, in line with the goal to reduce net debt in relation to EBITDA. The company's long-term dividend policy is that, once the net debt target has been met, the dividend should amount to at least 30% of net income. Eniro's preference shares are entitled to an annual dividend of SEK 48 per share.

Publication dates

Since revenues from the sale of printed directories are recognized when the various directories are published, changes in planned publication dates can affect comparisons. The table below shows the distribution among quarters and markets in 2014. The net effect on operating revenue in 2014 compared with 2013 is expected to be negative, by SEK 87 M. Recognized revenue for these directories will be lower in 2014 as a result of the structural decline in the market for printed products.

Transferred publications in 2014 compared with 2013

SEK M	Q1	Q2	Q3	Q4	2014
Sweden	-19	4	-6	-66	-87
Norway	-5	-6	18	-16	-9
Denmark	0	0	0	9	9
Poland	0	0	0	0	0
Total effect	-24	-2	12	-73	-87

Employees

On June 30, 2014, the number of full-time employees was 2,625, compared with 3,073 on June 30, 2013.

Full-time employees at the end of the period

	2014	2013
	June 30	June 30
Sweden, including Other	672	767
Norway	451	512
Denmark	349	434
Poland	789	829
Local search, including Other	2,261	2,542
Sweden	153	210
Norway	45	86
Finland	166	235
Voice	364	531
Group total	2,625	3,073

Accounting policies as from 2014

This interim report has been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations, as endorsed by the European Union (EU). A detailed description of the accounting policies applied by Eniro can be found in the 2013 Annual Report, Note 1, with the exception of new and amended standards and interpretations adopted by the EU that came into effect in January 2014. The quarterly report has been prepared in accordance with IAS 34 Interim Financial Reporting.

The following new standards are obligatory for fiscal years that begin on January 1, 2014, or later.

IFRS 10 – Consolidated Financial Statements is based on existing policies, since it identifies control as the decisive factor in establishing whether a company is to be consolidated. The standard provides additional guidance for the establishment of control in cases where this is difficult to evaluate.

IFRS 11 – Joint Arrangements focuses on the rights and obligations of the parties in a joint arrangement rather than the legal form of the arrangement. Two types of joint arrangements have been defined: joint operations and joint ventures. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. In such an arrangement, the assets, liabilities, income and expenses are to be reported based on the party's share of ownership in these. A joint venture involves a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.

IFRS 12 – Disclosures of Interests in Other Entities includes disclosure requirements for subsidiaries, joint arrangements, associated companies and nonconsolidated structured entities.

No other IFRS or IFRIC interpretations are expected to have any significant impact on the Group.

Risks and uncertainties

Eniro conducts risk analysis in an annual Enterprise Risk Management process, which covers all parts of the business.

A detailed description of factors that could affect Eniro's business, financial position and performance is provided on pages 50-53 in the 2013 Annual Report.

The principal risks and uncertainties that could impact the Group's performance in 2014 involve mobile and online traffic trends, product development that attracts users and thus customer yield, sales efficiency and employee turnover, and the impact of the general economy on demand.

Other information

The information in this interim report is such that Eniro AB (publ) is obligated to disclose pursuant to the Securities Market Act.

This information was submitted for publication on July 16, 2014, at 8:00 a.m. CET.

Solna, July 16, 2014

Johan Lindgren CEO

FOR FURTHER INFORMATION, PLEASE CONTACT:

Johan Lindgren, President and CEO Tel: +46 8 553 310 01

Cecilia Lannebo, Head of IR Tel: +46 72 220 82 77 cecilia.lannebo@eniro.com

PRESS AND ANALYST CONFERENCE

Conference call/webcast Wednesday July 16, 2014 10:00 a.m. Sweden: +46 (0) 8 519 993 65 UK: +44 (0) 207 660 2078

WEBCAST

Follow the presentation by webcast at www.enirogroup.com

FINANCIAL CALENDAR 2014/2015

Interim report Jan.-Sept. 2014	Oct. 24, 2014
Interim report Jan.-Dec. 2014	Feb. 6, 2015
Interim report Jan.-March 2015	Apr. 24, 2015
Annual General Meeting	Apr. 24, 2015
Interim report Jan.-June 2015	Jul. 16, 2015
Interim report Jan.-Sept. 2015	Oct. 29, 2015

The Board of Directors and the President certify that the six-month report provides an accurate overview of the Parent Company's and the Group's operations, financial position and results, and that it describes the significant risks and uncertainties faced by the Parent Company and the companies in the Group.

Stockholm, July 16, 2014

Lars-Johan Jarnheimer Chairman

Cecilia Daun Wennborg Board member

Ketil Eriksen Board member

Leif Aa. Fredsted Board member

Stina Honkamaa Bergfors Board member

Staffan Persson Board member

Katarina Emilsson-Thudén Employee representative

Jonas Svensson Employee representative

Johan Lindgren President and CEO

Consolidated Income Statement

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jul-Jun	Jan-Dec
SEK M	2014	2013	2014	2013	2013/14	2013
Gross operating revenue	794	895	1 587	1 783	3 472	3 668
Advertising tax	- 1	- 2	- 2	- 4	- 6	- 8
Operating revenue	793	893	1 585	1 779	3 466	3 660
Production costs	-185	-197	-379	-412	-842	-875
Sales costs	-264	-257	-532	-562	-1 110	-1 140
Marketing costs	-74	-53	-139	-100	-301	-262
Administration costs	-89	-125	-206	-246	-463	-503
Product development costs	-59	-66	-112	-135	-236	-259
Other income/costs	7	2	72	4	85	17
Impairment of non-current assets	-	- 5	-	- 5	-99	-104
Operating income**	129	192	289	323	500	534
Financial items, net	-50	-56	-100	-69	-173	-142
Income before tax	79	136	189	254	327	392
Income tax	- 6	-56	-45	-85	-118	-158
Net income	73	80	144	169	209	234
Of which, attributable to:
Ow ners of the Parent Company	71	78	142	165	209	232
Non-controlling interests	2	2	2	4	0	2
Net Income	73	80	144	169	209	234

Earnings per common share, SEK	0,59	0,66	1,18	1,41	1,61	1,84
Average number of common shares, thousands	100 177	100 177	100 177	100 177	100 177	100 177
Preference shares on closing date, thousands Preference dividends on cumulative preference	1 000	1 000	1 000	1 000	1 000	1 000
shares declared in the period	-12	-12	-24	-24	-48	-48
Earnings used for net income per common share	59	66	118	141	161	184
EBITDA	194	234	421	404	866	849
Operating cost	-606	-661	-1 236	-1 379	-2 685	-2 828
** Includes depreciation of	- 5	- 7	-11	-14	-23	-26
** Includes amortization of	-60	-30	-121	-62	-244	-185
** Includes impairment losses of	-	- 5	-	- 5	-99	-104
Total	-65	-42	-132	-81	-366	-315

Consolidated statement of comprehensive income

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jul-Jun	Jan-Dec
SEK M	2014	2013	2014	2013	2013/14	2013
Net income	73	80	144	169	209	234
Other comprehensive income
Items that cannot be reclassified to income statement
Revaluation of pension obligations	12	7	15	16	232	233
Tax attributable to revaluation pension obligations	- 2	- 1	- 3	- 3	-51	-51
Total	10	6	12	13	181	182
Items that have been or can be reclassified subsequently to income statement
Exchange rate differences	88	50	172	-183	37	-318
Hedge of net investment	-10	- 2	-21	60	2	83
Tax attributable to other items	3	1	5	-13	0	-18
Total	81	49	156	-136	39	-253
Other comprehensive income, net after tax	91	55	168	-123	220	-71
Total comprehensive income	164	135	312	46	429	163
Of which, attributable to:
Equity holders of the parent company	162	133	310	42	429	161
Non-controlling interests	2	2	2	4	0	2
Total comprehensive income	164	135	312	46	429	163

Consolidated balance sheet

	Jun. 30	Jun. 30	Dec. 31
SEK M	2014	2013	2013
Assets
Non-current assets
Tangible assets	36	39	40
Intangible assets	7 056	7 227	6 948
Deferred tax assets	193	369	209
Financial assets	172	149	148
Total non-current assets	7 457	7 784	7 345
Current assets
Trade receivables	332	452	430
Current tax assets	1	0	0
Other current receivables	306	292	267
Other interest-bearing receivables	1	1	3
Cash and cash equivalents	131	117	113
Total current assets	771	862	813
TOTAL ASSETS	8 228	8 646	8 158
Equity and liabilities
Equity
Share capital	309	2 529	309
Additional paid in capital	5 125	5 125	5 125
Reserves	-205	-243	-360
Retained earnings	-1 314	-3 830	-1 421
Total equity share holders of the Parent company	3 915	3 581	3 653
Non-controlling interests	62	39	68
Total equity	3 977	3 620	3 721
Non-current liabilities
Borrow ing	1 950	2 309	2 115
Deferred tax liabilities	269	278	276
Pension obligations	289	496	273
Provisions	5	7	5
Other non-current liabilities	1	7	6
Total non-current liabilities	2 514	3 097	2 675
Current liabilities
Trade payables	155	171	181
Current tax liabilities	26	32	25
Other current liabilities	990	1 332	1 030
Provisions	30	21	74
Borrow ing	536	373	452
Total current liabilities	1 737	1 929	1 762
TOTAL EQUITY AND LIABILITIES	8 228	8 646	8 158

Interest-bearing net debt

	Jun. 30	Jun. 30	Dec. 31
SEK M	2014	2013	2013
Borrow ing	-2 486	-2 682	-2 567
Other current interest-bearing receivables	1	1	3
Other non-current interest-bearing receivables**	122	111	111
Cash and cash equivalents	131	117	113
Interest-bearing net debt	-2 232	-2 453	-2 340

** included in financial assets

Consolidated statement of changes in equity

		Additional			Total equity, owners of	Non
	Share	paid in		Retained	the Parent	controlling	Total
SEK M	Capital	capital	Reserves	earnings	Company	interest	equity
Opening balance, January 1, 2013	2 529	5 125	-107	-4 004	3 543	-	3 543
Change in non-controlling interests	-	-	-	44	44	35	79
Dividend on preference shares	-	-	-	-48	-48	-	-48
Total comprehensive income	-	-	-136	178	42	4	46
Closing balance, June 30, 2013	2 529	5 125	-243	-3 830	3 581	39	3 620
Opening balance, January 1, 2014	309	5 125	-360	-1 421	3 653	68	3 721
Total comprehensive income	-	-	155	155	310	1	311
Dividend on preference shares	-	-	-	-48	-48	-	-48
Dividend non-controlling interest	-	-	-	-	-	- 7	- 7
Closing balance, June 30, 2014	309	5 125	-205	-1 314	3 915	62	3 977

Key ratios

	Jun. 30	Jun. 30	Dec. 31
	2014	2013	2013
Equity, average 12 months, SEK M	3 737	3 510	3 614
Return on equity (ROE), 12 months, %	5,6	8,2	6,4
Return on Assets (ROA), 12 months, %	6,2	7,7	6,9
Earnings per common share, SEK	1,18	1,41	1,84
Adjusted earning per common share (non-IFRS), excl. items affecting
comparability and PPA related depr/amort	1,12	1,64	3,00
Interest-bearing net debt, SEK M	-2 232	-2 453	-2 340
Debt/equity ratio, times	0,56	0,68	0,63
Equity/assets ratio, %	48	42	46
Interest-bearing net debt/EBITDA 12 months, times	2,6	2,5	2,8
Interest-bearing net debt/adjusted EBITDA, times	2,5	2,5	2,4
Average number full-time employees YTD	2 721	3 130	3 002
Number of full-time employees on the closing date	2 625	3 073	2 816
Number of common shares on the closing
date after deduction of treasury shares, 000s	100 177	100 177	100 177
Number of preference shares on the closing
date, 000s	1 000	1 000	1 000

Consolidated statement of cash flows

SEK M	Apr-Jun 2014	Apr-Jun 2013	Jan-Jun 2014	Jan-Jun 2013	Jul-Jun 2013/14	Jan-Dec 2013
Operating income	129	192	289	323	500	534
Depreciation, amortization and impairment	65	42	132	81	366	315
Other non-cash items	12	-26	-94	-32	-56	6
Financial items, net	-35	-40	-70	-79	-143	-152
Income tax paid	-11	-25	-22	-56	-25	-59
Cash flow from operating activities before
changes in working capital	160	143	235	237	642	644
Changes in w orking capital	49	1	-40	33	-236	-163
Cash flow from operating activities	209	144	195	270	406	481
Acquisitions/divestments of group companies and
other assets	0	0	49	41	41	33
Investments in non-current assets, net	-35	-41	-74	-79	-147	-152
Cash flow from investing activities	-35	-41	-25	-38	-106	-119
Proceeds from borrow ings	49	2 738	72	2 738	213	2 879
Repayment of borrow ings	-186	-2 972	-186	-2 972	-435	-3 221
Long-term investments	0	-50	-10	-50	-10	-50
Dividend on preference shares	-12	-12	-24	-24	-48	-48
Dividend minority ow ners	- 7	-	- 7	0	- 7	-
Rights issue	-	-	-	-	0	0
Cash flow from financing activities	-156	-296	-155	-308	-287	-440
Cash flow	18	-193	15	-76	13	-78
Cash and cash equivalents at start of period	111	308	113	198	117	198
Cash flow	18	-193	15	-76	13	-78
Exchange rate difference in cash and cash equivalents	2	2	3	- 5	1	- 7
Cash and cash equivalents at end of period	131	117	131	117	131	113

Analysis of interest-bearing net debt

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jul-Jun	Jan-Dec
SEK M	2014	2013	2014	2013	2013/14	2013
Opening balance	-2 374	-2 539	-2 340	-2 704	-2 453	-2 704
Operating cash flow	174	103	121	191	259	329
Acquisitions and divestments	0	0	49	41	41	33
Share issue	-	-	-	-	0	0
Translation difference and other changes	-32	-17	-62	19	-79	2
Closing balance	-2 232	-2 453	-2 232	-2 453	-2 232	-2 340
Net debt/adjusted EBITDA, times	2,5	2,5	2,5	2,5	2,5	2,4

Financial instruments by category

Assets on the balance sheet	Jun. 30	Jun. 30	Dec. 31
SEK M	2014	2013	2013
Loans and accounts receivables
Interest-bearing assets and blocked bank funds	122	111	111
Trade receivables and other receivables	351	471	457
Cash and cash equivalents	131	117	113
TOTAL	604	699	681
Liabilities on the balance sheet, SEK M	Jun. 30	Jun. 30	Dec. 31
SEK M	2014	2013	2013
Other financial liabilities
Borrow ing	2 486	2 682	2 567
Trade payables	155	171	181
TOTAL	2 641	2 853	2 748

Parent company

Income statement

	Jan-Jun	Jan-Jun	Jan-Dec
SEK M	2014	2013	2013
Revenues	19	15	37
Earnings before tax	-58	-102	486
Net Income	-39	-79	399

Balance sheet

	Jun. 30	Jun. 30	Dec. 31
SEK M	2014	2013	2013
Non-current assets	8 556	8 715	8 525
Current assets	1 964	1 431	2 093
TOTAL ASSETS	10 520	10 146	10 618
Equity	5 694	5 302	5 780
Provisions	66	63	64
Non-current liabilities	4 672	4 672	4 672
Current liabilities	88	109	102
TOTAL EQUITY AND LIABILITIES	10 520	10 146	10 618

Financial definitions

Adjusted EBITDA

EBITDA excluding restructuring costs and other items affecting comparability

Adjusted earnings per common share (non-IFRS)

Net income excluding items affecting comparability, PPA related amortization/ depreciation and impairment losses as well as other PPA related items.

Average number of common shares

Calculated as an average number of common shares outstanding on a daily basis after redemptions and repurchases. Excluding shares held by Eniro.

Average shareholders' equity

Based on average shareholders' equity attributable to owners of the Parent Company at the start and end of each quarter.

Debt/equity ratio

Interest-bearing net debt divided by shareholders' equity including holdings excluding for controlling interests.

Earnings per common share for the period

Earnings attributable to owners of the Parent Company for the period less the predetermined dividend on preference shares for the period, divided by the average number of common shares.

EBITDA

Operating income before depreciation, amortization and impairment losses.

EBITDA margin (%)

EBITDA divided by operating revenues, multiplied by 100.

Equity/assets ratio (%)

Shareholders' equity including non-controlling interests divided by the balance sheet total, multiplied by 100.

Interest-bearing net debt

Borrowings excluding interest-rate derivatives less cash and cash equivalents and interest-bearing receivables.

Interest-bearing net debt/EBITDA

Interest-bearing net debt divided by EBITDA.

Organic growth

The change in operating revenues for the year adjusted for currency effects, changed publication dates, acquisitions and divestments.

Operating cash flow

Cash flow from operating activities and cash flow from investing activities excluding company acquisitions/ divestments.

Operating income

Operating income after depreciation, amortization and impairment losses.

Return on equity (%)

Net income divided by average shareholders' equity attributable to owners of the Parent Company multiplied by 100.

Shareholders' equity per share

Equity attributable to owners of the Parent Company divided by the number of shares at year-end after redemptions repurchases and share issues.

Total operating costs

Production, sales, marketing, administration, product and development costs excluding depreciation, amortization and impairment losses.