North Media

Earnings Release • Nov 5, 2015

FK Distribution is heavily and adversely affected by unreasonably price
competition by Post Danmark

5 November 2015
Company announcement no 09-15

FK Distribution is heavily and adversely affected by unreasonably price
competition by Post Danmark:

The total number of letters continues to go down – yet Post Danmark continues
to increase the letter rate!

The total volume of unaddressed printed matter continues to decline – yet Post
Danmark continues to lower distribution prices!

-- Close on 500,000 households have now signed up for NoAds+, which progresses
as planned.
-- The Group’s strategic efforts of strengthening and developing its market
positions are generally proceeding as planned.
-- Considerable resources are still dedicated to expanding NoAdds+, BEKEY and
Online activities.
-- Group revenue is DKK 228.0 million for Q3 2015. This is within the range of
expectations, although at the lower end.
-- Group EBITDA for Q3 2015 is negative by DKK 1.3 million and EBIT stands at
a negative DKK 13.0 million. This is as anticipated.
-- The Group’s net interest-bearing cash position is DKK 71.6 million, and
capital resources come to DKK 263.2 million at 30 September 2015.

FK Distribution’s revenue dropped by approx 10% in Q3 2015 on the same quarter
last year. This is the main reason for group revenue for Q3 2015 being 8% lower
than for Q3 2014. Revenue from newspaper activities went down by 8% on the same
period last year and fell short of expectations. Revenue from the Online
segment was 5% lower compared to the same period last year and behind
expectations, which is a result of the divestment of Godmail.dk, the change in
strategy for håndværker.dk in mid-2014 and the readjustment of the pricing
model for BoligPortal.dk.

In Q3 2015, Group EBIT was negative by DKK 13.0 million, which is DKK 20.4
million down on the same quarter last year, when Group EBIT was DKK 7.4
million. This decline came as expected and was caused primarily by FK
Distribution but also by the lower revenue generated this year from the
newspaper activities. The Q3 2015 EBIT from the Online segment was a negative
DKK 3.9 million compared to positive EBIT of DKK 2.4 million for the same
period last year. This decrease in performance was a little larger than
expected due to the decision to develop and strengthen the market position of
BoligPortal.dk and håndværker.dk by way of new products and intensified
marketing efforts.

FK Distribution continues to increase the number of households signed up for No
Ads+.
During Q3 2015, close on 60,000 new households signed up for NoAds+. The number
of NoAds+ households now totals almost 500,000, and the activity is developing
very satisfactorily and according to plan.

BEKEY expands its product portfolio and activities outside Denmark.
BEKEY is selling electronic lock systems and increasingly also key cabinets
that are also controlled from the internet-based administration system NETKEY.
The sale of emergency call systems is growing rapidly too.

The BEKEY system is now being tested or in operation in 21 municipalities in
Denmark, two in Sweden and three in Norway. In addition, arrangements have been
made with a Finnish partner, and some other co-operation agreements with other
countries are in the process of negotiation.

As anticipated, BEKEY’s revenue was substantially higher in Q3 2015 compared to
the same quarter last year.

Developments in revenue from newspaper activities were a little behind
expectations and revenue is lower than last year
Newspaper sales to regional retail customers were lower than last year and
behind expectations. Sales to large customers and chains, however, were up to
expectations and higher than last year.

Viewed on a three-month basis, the Søndagsavisen readership has gone up by 3%
on the same period in 2014.

Ofir’s revenue is weaker than expected
Both advertisement revenue from Ofir Jobunivers and sales of the electronic
recruiting system Emply-Hire saw weaker development in Q3 2015 than expected.

New media have been added to Ofir Jobunivers, which has prompted a massive
increase in the number of applications received by employers when posting their
vacancies through Ofir Jobunivers.

håndværker.dk improves its market position.
håndværker.dk continues to develop positively, seeing growth in the number of
builders registered and recommendations. To strengthen this position further,
more money was invested in marketing initiatives in Q3 2015 than projected,
which has an adverse short-term effect on performance. Together with Renault
and Danish consumers, håndværker.dk will in Q4 2015 elect Denmark’s best
builder.

In Q3 2015, BoligPortal.dk readjusted its pricing structure, leading to more
users and better conversion.
Primarily due to the decision to readjust prices and thus stagger revenue,
BoligPortal.DK’s revenue for Q3 2015 came out lower than anticipated. The
strategic initiatives are proceeding according to expectations, and a portfolio
of new products is in the pipeline.

Expectations for group revenue and performance for FY 2015 are maintained and
made more specific.
Group’s revenue is expected to range from DKK 1,000 million to DKK 1,020
million for 2015. Group EBIT is expected to range from a negative DKK 15
million to DKK 0 million for 2015.

Please contact Lars Nymann Andersen, CEO, at +45 40 36 26 30 or Kåre Wigh, CFO,
at +45 25 65 21 45 for further information.