North Media — Interim / Quarterly Report 2021

Aug 18, 2021

Interim Report

Q2 2021

NORTH MEDIA A/S

Gladsaxe Møllevej 28, DK-2860

Søborg CVR-no. 66 59 01 19

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Contents

Management report

• Performance in H1 2021 3
• Q2 performance - business areas 4
• Full-year 2021 guidance 5
• Guidance for business areas in 2021 6
• Group financial highlights 7
• Selected profit and loss and balance sheet items 8
• Group quarterly highlights 10

Interim Report

• Management's statement 11
• Consolidated statement of comprehensive income 12
• Consolidated balance sheet 13
• Consolidated statement of changes in equity 14
• Consolidated cash flow statement 15
• Notes 16

The Interim Report Q2-2021 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.

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Performance in H1 2021

Planned targets achieved

H1 2021 results in line with expectations

Revenue

Consolidated revenue down by 2% year on year in the H1 2021 period. Revenue down by 3% in FK Distribution (Last Mile), but up by 10% in Digital Services.

EBIT

Consolidated H1 2021 EBIT amounted to DKK 132m, a DKK 10m increase over last year. Last Mile and Digital Services both contributed to the EBIT improvement.

EBIT margin

The consolidated EBIT margin rose to 26.3%, a 2.4 percentage point improvement year on year. Last Mile and Digital Services both reported improved EBIT margins.

Better than expected

• Ofir (Digital Services) improved its revenue by 84% relative to the year-earlier period, which was briefly adversely affected by the COVID-19 situation.

As expected

• FK Distribution (Last Mile) expanded its contract with Deutsche Post and has since 1 July 2021 been packing leaflet bundles for 480,000 households per week in Germany.
• FK Distribution (Last Mile) volumes normalised in the second quarter following the impact of the COVID-19 situation in the first quarter. Leaflet volumes fell by 4% and overall revenue was down by 3% in the first half-year. Implemented cost savings led to improved earnings.
• BoligPortal (Digital Services) continues to develop new SaaS products and new data solutions. Some have already been launched while others are scheduled for the third quarter as part of the plans to build a larger and more broad-based business.
• Bekey (Digital Services) has signed a contract with nemlig.com, the first major active customer in the "Stairwells" customer segment.

Not as expected

• BoligPortal's (Digital Services) new digital lease contract, a free service to landlords and tenants which had been delayed, was launched in mid-June.
• At the request of its customers, Bekey (Digital Services) has rescheduled the installation and implementation of its access system for three Danish municipalities to the second half of 2021.

North Media A/S Interim Report Q2 2021 / 3

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North Media A/S Interim Report Q2 2021 / 4

Q2 performance – business areas

Last Mile

Q2 2021 (Q2 2020) (DKKm)

FK Distribution

• FK Distribution reported revenue 1% higher than last year. The increase was mainly due to timing differences for volumes of leaflets, as campaigns were rescheduled from January/February to the second quarter due to COVID-19.
• Overall leaflet volumes in the second quarter were in line with the figure for Q2 2020. Generally speaking, small customers have cut back on their marketing for structural reasons or due to uncertainty relating to COVID-19, whereas large retail shops and chains have either ramped up or kept their leaflet marketing activity unchanged.
• Prices of distributing leaflets follow general cost trends, rising by about 2% year on year in the Q2 2021 period.
• FK Distribution has served a writ of summons on the Danish Competition and Consumer Authority in order to have the Authority's decision of 30 June 2020 on the use of tying conditions for users of minetilbud.dk tried before the courts. The matter is being tried for reasons of principle.

Revenue	EBIT	EBIT margin
223
(221)	62
(54)	27.9%
(24.3%)

Digital Services

Q2 2021 (Q2 2020) (DKKm)

BoligPortal

• Revenue was up by 1%. As expected, the performance was impacted by the fact that certain products are now available free of charge following the launch of a new freemium platform.
• Tenant-driven revenue continues to grow, especially in Denmark.
• Q2 EBIT at 35.5% even with the loss of revenue from products that are now free and ramped up marketing of products that will not generate revenue until late in the third quarter.

| Revenue | 21.7
(21.5) |
| --- | --- |
| EBIT | 7.7
(8.0) |

Ofir

• Revenue was up by 102% year on year.
• Private-sector employers contributed most of the revenue improvement.
• Partnership with Google For Jobs, launched in April, drove up traffic and applicant numbers.
• EBIT improved from a DKK 0.6m loss in Q2 2020 to a DKK 1.9m profit and an EBIT margin of 20.9% in Q2 2021.

| Revenue | 9.1
(4.5) |
| --- | --- |
| EBIT | 1.9
(-0.6) |

Bekey

• Revenue was down by 10% because a project with three municipal customers was rescheduled for the second half of the year, while Q2 revenue in 2020 was lifted by projects implemented for three municipal customers.
• SmartRelay is now installed in 25,500 stairwells (equal to 57%) in the Greater Copenhagen area.
• Increased targeting of property managers and property developers.

| Revenue | 5.6
(6.2) |
| --- | --- |
| EBIT | -2.0
(-1.9) |
| Revenue | EBIT | EBIT margin |
| --- | --- | --- |
| 36
(32) | 8
(6) | 20.9%
(17.1%) |

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Full-year 2021 guidance

The Group upgrades its full-year revenue and EBIT guidance on 12. August 2021 (company announcement no 17-2021). FK Distribution (Last Mile) and Ofir (Digital Services) raise guidance for revenue and EBIT, while BoligPortal (Digital Services) and Bekey (Digital Services) lower their guidance.

Group revenue (DKKm)

North Media Group now expects consolidated revenue in the range of DKK 1,015m-1,035m, up from previously DKK 995m-1,025m. The updated guidance implies a 1%-3% drop in revenue year on year.

EBIT (DKKm)

Consolidated EBIT is now expected in the DKK 250m-265m range, up from previously DKK 235m-255m. Accordingly, the 2021 EBIT is expected to surpass the result achieved in 2020.

Expected group financial highlights for 2021 (DKKm)

Revenue

1.015 - 1.035

Guidance provided on 12 August 2021 1,015-1,035
Guidance provided on 5 May 2021 995-1,025
Guidance provided on 10 February 2021 985-1,025
Actual 2020 revenue 1,045

EBIT

250 - 265

Guidance provided on 12 August 2021 250-265
Guidance provided on 5 May 2021 235-255
Guidance provided on 10 February 2021 230-255
Actual 2020 EBIT 240

North Media A/S Interim Report Q2 2021 / 5

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□

Guidance for business areas in 2021

Last Mile

Digital Services

FK Distribution

• Guidance upgraded due to greater clarity about how the COVID-19 situation impacts volumes.
• Revenue still expected to fall relative to 2020, mainly due to reduced volumes from small customers.
• Distribution of printed matter, newspapers and direct mail etc. accounts for more than 90% of revenue. Rest of revenue consists of Minetilbud.dk and other services.
• Potential for expanding collaboration with Deutsche Post to be explored in autumn 2021 i.e. possible expansion to take place in 2022 at the earliest. Packing of leaflets for 480,000 households starting from 1 July 2021 accounts for about 1% of FK Distribution's overall guided revenue.

Guidance for 2021 (DKKm)

Interim Report Q2 2021
Revenue: 865-880
EBIT: 235-245

Interim Report Q1 2021
Revenue: 850-870
EBIT: 215-230

Actual 2020 (DKKm)
Revenue: 913.6
EBIT: 233.7

BoligPortal

• Revenue and EBIT guidance lowered due to delays in transition to make revenue streams subscription-driven.
• The years EBIT are still expected to be better than in 2020
• Launch of SaaS products to landlords, data products to property investors and service offerings to tenants expected to generate double-digit growth rate from fourth quarter.

Guidance for 2021 (DKKm)

Interim Report Q2 2021
Revenue: 90-94
EBIT: 29-31

Interim Report Q1 2021:
Revenue: 93-97
EBIT: 31-33

Actual 2020 (DKKm)
Revenue: 82.3
EBIT: 27.2

Ofir

• Guidance upgraded.
• High double-digit revenue growth, driven mainly by more job postings from private-sector employers and better prices.
• EBIT margin continues to improve, driven by economies of scale on increased volumes and pricing.
• Data team expanded, adding further strength to data and research capabilities involving job ads and job applicants.

Guidance for 2021 (DKKm)

Interim Report Q2 2021
Revenue: 31-34
EBIT: 3-5

Interim Report Q1 2021:
Revenue: 24-27
EBIT: 1-2

Actual 2020 (DKKm)
Revenue: 20.9
EBIT: -1.9

Bekey

• Revenue and EBIT guidance lowered due to anticipated delays in installation and implementation of projects for municipal customers in both Denmark and Norway.
• The target rate of cover of SmartRelay in locked multi-storey buildings in Greater Copenhagen area expected to reach 60% by the end of 2021 against 70% previously.

Guidance for 2021 (DKKm)

Interim Report Q2 2021
Revenue: 26-30
EBIT: -7 til -6

Interim Report Q1 2021:
Revenue: 28-31
EBIT: -7 til -5

Actual 2020 (DKKm)
Revenue: 28.6
EBIT: -6.8

Revenue	EBIT
865-880	235-245
Revenue	EBIT
---	---
147-158	25-30

North Media A/S Interim Report Q2 2021 / 6

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Group financial highlights

DKKm	Q2		Q2 YTD		full year
	2021	2020	2021	2020	2020
Income statement
Revenue	258.9	253.6	501.6	510.3	1,045.4
Gross profit	156.5	150.9	305.3	305.2	619.8
EBITDA	74.4	65.0	145.7	137.9	270.4
Amortisation and depreciation	6.8	8.9	13.9	16.0	30.2
EBIT	67.6	56.1	131.8	121.9	240.2
Return on securities	61.3	101.7	62.2	56.9	154.5
Financials, net	1.8	1.6	-2.4	-3.0	-5.5
Profit before tax	127.6	155.7	192.3	175.3	388.1
Tax for the period	29.3	36.3	41.0	40.7	85.1
Net profit, continuing operations	98.3	119.4	151.3	134.6	303.0
Net profit, discontinuing operations	0.0	6.4	0.0	3.5	3.5
Net profit for the period	98.3	125.8	151.3	138.1	306.5
Comprehensive income	98.3	125.8	151.1	138.3	306.8
Net profit excluding return on securities	50.5	46.5	102.8	93.7	186.0
Balance sheet, end period
Total assets	-	-	1,226.3	1,135.1	1,189.1
Shareholders' equity	-	-	956.8	781.4	879.0
Net interest-bearing cash position	-	-	590.2	506.3	579.0
Properties	-	-	244.6	252.8	248.2
Mortgage Debt	-	-	-120.5	-125.2	-122.8
Capital resources	-	-	771.1	689.9	738.9
Net working capital (NWC)	-	-	-13.4	-88.2	-58.4
Invested capital	-	-	366.6	275.1	300.0
Investments in property, plant and equipment	-	-	8.4	8.4	16.4
Free cash flow	-	-	74.2	176.5	291.3

Reference is made to Note 3 in the Annual Report 2020 for Ratio definitions.

1) Profit for the period annualised

DKKm	Q2		Q2 YTD		full year
	2021	2020	2021	2020	2020
Cash flow statement
Cash flows from operating activities	39.3	115.0	66.3	180.2	218.6
Cash flows from investing activities	-3.4	-9.1	-2.8	-8.6	-47.3
Cash flows from financing activities	-2.1	-1.8	-87.9	-33.3	-110.4
Total cash flows, continuing activities	33.8	104.1	-24.4	138.3	60.9
Total cash flows, discontinued activities	0.0	8.6	0.0	7.8	7.8
Other information
Average number of employees	-	-	406	440	445
Number of shares end of period, in thousand in denominations of DKK5	-	-	20,055	20,055	20,055
Treasury shares	-	-	1,909	2,100	2,100
Share price end of period, DKK	-	-	112.2	55.8	79.8
Ratios
Gross margin	60.4%	59.5%	60.9%	59.8%	59.3%
EBIT margin	26.1%	22.1%	26.3%	23.9%	23.0%
Equity ratio	-	-	78.0%	68.8%	73.9%
Return on equity (ROE) 1)	-	-	33.0%	38.0%	39.5%
Return on capital employed (ROIC) 1)	-	-	79.1%	79.8%	75.5%
Earnings per share (EPS)	5.4	7.0	8.4	7.6	16.9
Diluted earnings per share (EPS-D)	5.3	6.9	8.2	7.5	16.7
Earnings per share excluding return on securities (EPS-adj)			5.7	5.2	10.3
Price/Earnings (P/E) 1)	-	-	6.7	3.7	4.7
Price/Book Value (P/BV)	-	-	2.4	1.4	1.8
Cash flow per share (CFPS)	2.2	6.5	3.7	10.0	12.1

North Media A/S Interim Report Q2 2021 / 7

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Selected profit and loss and balance sheet items

Net profit for the period

Net profit for the H1 2021 period was DKK 151.3m (H1 2020: DKK 138.1m). The improvement was driven in particular by the DKK 9.9m EBIT and a slight increase in the return on securities.

Earnings per share (diluted) for H1 2021 was DKK 8.2 (H1 2020: DKK 7.5).

Earnings per share (exclusive of the return on securities) for H1 2021 was 5.7 (H1 2020: DKK 5.2).

Capital resources remaining strong after dividend payout

The Group had capital resources of DKK 771m at 30 June 2021, consisting of DKK 129m in cash and DKK 642m in securities. At 31 December 2020, capital resources amounted to DKK 739m.

Capital resources have increased by DKK 32m since the start of the year despite the payment of a total of DKK 91m in dividends, DKK 30m in employee income taxes due after COVID-19-related deadline extensions and DKK 18m in frozen holiday pay. At the end of June 2021, working capital had normalised at a new level, which involved substantially reduced holiday pay obligations and normal deadlines for the payment of employee income taxes and VAT.

Cash flow from ordinary activities

Cash flows from operating activities amounted to DKK 66.3m in the H1 2021 period compared with DKK 180.2m a year earlier, when cash flow were supported by extended deadlines for the payment of VAT as well as employee and corporate income taxes and which payments have since been settled.

Capital appreciation drives up value of securities portfolio

The H1 2021 return on the Group's securities was a DKK 62.2m (10.7%) gain, compared with a gain of DKK 56.9m or 14.6% in H1 2020.

Quarterly return on securities (DKKm)

Securities portfolio market value (DKKm)	31.07.2021	30.06.2021	31.12.2020
Amazon	82.8	85.7	78.5
DSV	76.4	73.1	51.0
Genmab	71.2	64.4	61.8
Sea	51.8	51.6	36.2
Teradyne	47.7	50.3	43.6
SimCorp	52.3	47.2	54.3
Ørsted	46.6	44.0	62.2
MasterCard	45.6	43.1	40.8
Microsoft	44.5	42.4	33.7
Paypal	34.5	36.5	-
Novo Nordisk	34.8	31.5	25.6
Mercado Libre	29.4	29.2	30.4
NVIDIA Corp	14.6	15.0	9.5
Fundamental Invest ABC	14.6	14.1	12.3
Fundamental Invest ABD	14.4	13.9	12.4
Visa	-	-	33.1
Total	661.2	642.0	585.4

North Media A/S Interim Report Q2 2021 / 8

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North Media A/S Interim Report Q2 2021 / 9

The risk on the portfolio at 30 June 2021 was calculated at 20.7%. Risk is calculated as the annualised standard deviation measured over the past 90 days of trading. Value at Risk, which reflects the maximum loss over a three-month period at a 95% probability amounted to DKK 110.1m.

The value of the portfolio of shares at 31 July 2021 was DKK 661.2m, and the return for April was a 19.2m gain.

The Group's properties

The Group owns a number of properties, including mainly the headquarter properties in Søborg, Taastrup and Tilst. The properties are recognised at a carrying value of DKK 245 m (31 December 2020 248m) and have been mortgaged against long-term, fixed-rate loans at a total of DKK 121m (31 December 2020 123m).

The Group's business areas pay rent on market terms for the use of the properties. The Group's operating profit on the property portfolio is recognised in the item "unallocated income and expenses". The item also includes group-related functions not charged to operating companies, such as board members' fees, IR-related costs and certain shared group functions.

Equity and the portfolio of treasury shares

Equity amounted to DKK 956.8m at 30 June 2021, which was DKK 77.8m more than at 31 December 2020.

The increase in equity was based on the profit for the reporting period of DKK 151.1m and the sale of treasury shares for DKK 7.0m in connection with a share option programme, less dividends paid of DKK 91m.

The Group held 1,909k treasury shares at 30 Jun2 2021, equal to 9.52% of the share capital of North Media A/S.

The holding of treasury shares is intended to cover 706,000 share options awarded to senior executives as part of a share option programme introduced in 2018. The holding of treasury shares is also reserved for full or partial payment of any future acquisitions of or investments to be made in other companies.

Positive share price performance

The price of North Media shares appreciated from DKK 79.8 per share at 31 December 2020 to DKK 112.2 per share at 30 June 2021, corresponding to a gain of 41%.

By comparison, the OMX Copenhagen Small Cap index was up by 27% during the period.

Purpose of capital resources

• To maintain sufficient financial strength to exploit market opportunities and meet strategic objectives
• To have the financial strength to carry out business acquisitions; of businesses holding a potential for positive synergies and scalability and matching our existing businesses
• To have the financial strength to pay stable, attractive dividends and make occasional share buy-backs
• To have the financial strength to withstand society lockdowns and other significant changes in society during periods of COVID-19 pandemics, or the like

Security investments

• Liquid listed shares and investment associations
• Industries offering growth potential, also on 5Y-10Y horizon
• Focused portfolio of from eight to twenty stocks
• Long-term investment focus
• Value-protecting investments

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Group quarterly highlights

DKKm	Q2 YTD		Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
	2021	2020		2021				2020				2019
Revenue
Last Mile
FK Distribution	431.3	446.5	222.5	208.8	239.0	228.1	221.4	225.1	261.9	215.8	240.4	216.8
Index cp. same period last year	96.6	97.7	100.5	92.8	91.3	105.7	92.1	103.8	103.2	101.5	102.6	97.1
Digital Services
BoligPortal	42.1	40.7	21.7	20.4	20.0	21.6	21.5	19.2	17.0	18.8	17.3	16.3
Index cp. same period last year	103.4	121.1	100.9	106.3	117.6	114.9	124.3	117.8	109.0	108.7	108.1	112.4
Ofir	16.7	9.1	9.1	7.6	6.6	5.2	4.5	4.6	4.2	3.8	4.3	4.5
Index cp. same period last year	183.5	103.4	202.2	165.2	157.1	136.8	104.7	102.2	105.0	95.0	95.6	102.3
Bekey	11.5	14.0	5.6	5.9	8.9	5.7	6.2	7.8	8.3	5.0	4.6	6.6
Index cp. same period last year	82.1	125.0	90.3	75.6	107.2	114.0	134.8	118.2	159.6	61.0	93.9	122.2
Digital Services, total	70.3	63.8	36.4	33.9	35.5	32.5	32.2	31.6	29.5	27.6	26.2	27.4
Index cp. same period last year	110.2	119.0	113.0	107.3	120.3	117.8	122.9	115.3	119.0	93.6	103.1	112.8
Revenue, total	501.6	510.3	258.9	242.7	274.5	260.6	253.6	256.7	291.4	243.4	266.6	244.2
Index cp. same period last year	98.3	99.9	102.1	94.5	94.2	107.1	95.1	105.1	104.6	100.5	102.7	98.7
EBIT
Last Mile
FK Distribution	123.6	117.9	62.1	61.5	56.8	59.0	53.9	64.0	65.2	33.6	43.8	29.8
EBIT margin	28.7%	26.4%	27.9%	29.5%	23.8%	25.9%	24.3%	28.4%	24.9%	15.6%	18.2%	13.7%
Digital Services
BoligPortal	13.4	14.1	7.7	5.7	6.0	7.1	8.0	6.1	4.0	5.0	3.7	3.2
EBIT margin	31.8%	34.6%	35.5%	27.9%	30.0%	32.9%	37.2%	31.8%	23.5%	26.6%	21.4%	19.6%
Ofir	3.0	-2.0	1.9	1.1	0.5	-0.5	-0.6	-1.4	-1.8	-1.8	-1.8	-1.5
EBIT margin	18.0%	-22.0%	20.9%	14.5%	7.6%	-9.6%	-13.3%	-30.4%	-42.9%	-47.4%	-41.9%	-33.3%
Bekey	-3.5	-3.3	-2.0	-1.5	-1.5	-2.0	-1.9	-1.4	-2.3	-2.7	-3.6	-1.8
EBIT margin	-30.4%	-23.6%	-35.7%	-25.4%	-16.9%	-35.1%	-30.6%	-17.9%	-27.7%	-54.0%	-78.3%	-27.3%
Digital Services, total	12.9	8.8	7.6	5.3	5.0	4.6	5.5	3.3	-0.1	0.5	-1.7	-0.1
EBIT margin	18.3%	13.8%	20.9%	15.6%	14.1%	14.2%	17.1%	10.4%	-0.3%	1.8%	-6.5%	-0.4%
Unallocated income/cost	-4.7	-4.8	-2.1	-2.6	-3.9	-3.2	-3.3	-1.5	-0.6	-1.4	-1.5	-1.6
EBIT, total	131.8	121.9	67.6	64.2	57.9	60.4	56.1	65.8	64.5	32.7	40.6	28.1
EBIT margin	26.3%	23.9%	26.1%	26.5%	21.1%	23.2%	22.1%	25.6%	22.1%	13.4%	15.2%	11.5%

North Media A/S Interim Report Q2 2021 / 10

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North Media A/S Interim Report Q2 2021 / 11

Management's statement

The Board of Directors and the Executive Board have today considered and approved the Consolidated Interim Report of North Media A/S for the period 1 January to 30 June 2021.

The Consolidated Interim Report, which has not been audited or reviewed by the auditors of the Company, has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU and Danish disclosure requirements for interim reports of listed companies.

In our opinion, the Consolidated Interim Financial Statement gives a true and fair view of the Group's assets, liabilities and financial position at 30 June 2021 and of the results of the group's operations and cash flows for the period 1 January - 30 June 2021.

In our opinion, the management commentary includes a true and fair account of developments in the operations and financial circumstances of the Group, of the results for the period and of the financial position. Other than as described in the management commentary of this Interim Report, there have been no significant changes to the Group's risks and elements of uncertainty compared to the description provided in the 2020 Annual Report.

Kåre Stausø Wigh
Group Executive Director & CFO

Jannik Bray Christensen
CEO, Bekey A/S

Ole Elverdam Borch
Chairman

Ulrik Holsted-Sandgreen

Ulrik Falkner Thagesen

Søborg 18 August 2021

Executive Board

Lasse Ingemann Brodt
CEO, Forbruger-Kontakt A/S

Henrik Løvig Jensen
CEO, North Media Online A/S

Lasse Brunnenberger Wulff Hansen
Group Director, Business Development

Board of Directors

Richard Gustav Bunck
Vice-chirman

Mads Dahl Møberg Andersen

Thomas Weikop

Ann-Sofie Østberg Bjergby

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North Media A/S Interim Report Q2 2021 / 12

Consolidated statement of comprehensive income

DKKm	Q2		Q2 YTD		full year
	2021	2020	2021	2020	2020
Revenue	258.9	253.6	501.6	510.3	1,045.4
Direct costs	58.7	57.1	111.2	116.0	245.4
Direct staff costs	43.7	45.6	85.1	89.1	180.2
Gross profit	156.5	150.9	305.3	305.2	619.8
Staff costs	55.6	56.6	108.0	111.6	225.8
Other costs	27.8	31.2	54.2	61.1	131.7
Amortisation and depreciation	6.8	8.9	13.9	16.0	30.2
Other operating income	1.3	1.9	2.6	5.4	8.1
Operating profit (EBIT)	67.6	56.1	131.8	121.9	240.2
Share of profit/loss in associates	0.5	-0.5	0.7	-0.5	-1.1
Return on securities	61.3	101.7	62.2	56.9	154.5
Financial income	0.0	0.0	0.3	0.1	0.1
Financial costs	1.8	1.6	2.7	3.1	5.6
Profit before tax	127.6	155.7	192.3	175.3	388.1
Tax for the period	29.3	36.3	41.0	40.7	85.1
Net profit, continuing operations	98.3	119.4	151.3	134.6	303.0
Net profit, discontinued operations	0.0	6.4	0.0	3.5	3.5
Net profit for the period	98.3	125.8	151.3	138.1	306.5
Attributable, net profit/loss
Shareholders in North Media A/S	98.3	125.8	151.3	138.1	306.5
	98.3	125.8	151.3	138.1	306.5
Earnings per share, in DKK
Earnings per share (EPS) - total	5.4	7.0	8.4	7.6	16.9
Diluted earnings per share (EPS-D) - total	5.3	6.9	8.2	7.5	16.7
Earnings per share excluding return on securities (EPS-adj)	2.8	2.6	5.7	5.2	10.3
DKKm	Q2		Q2 YTD		full year
---	---	---	---	---	---
	2021	2020	2021	2020	2020
Net profit for the period	98.3	125.8	151.3	138.1	306.5
Financial statement items that may later be reclassified to the income statement:
Translation adjustments, foreign companies	0.0	0.0	-0.2	0.2	0.3
Other comprehensive income	0.0	0.0	-0.2	0.2	0.3
Comprehensive income	98.3	125.8	151.1	138.3	306.8
Attributable, comprehensive in-come
Shareholders in North Media A/S	98.3	125.8	151.1	138.3	306.8
	98.3	125.8	151.1	138.3	306.8

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North Media A/S Interim Report Q2 2021 / 13

Consolidated balance sheet

Assets

DKKm	30 June 2021	30 June 2020	31 Dec. 2020
Goodwill	39.1	39.1	39.1
Other intangible assets	9.5	10.7	10.1
Software	9.7	3.8	6.9
Intangible assets	58.3	53.6	56.1
Land and buildings	232.3	241.8	236.7
Investment property	17.2	17.6	17.4
Plant and machinery	38.8	43.0	39.6
Operating equipment, fixtures and fittings	9.7	11.7	12.0
Property, plant and equipment	298.0	314.1	305.7
Investments in associates	6.9	6.7	6.1
Other securities and investments	1.5	0.0	1.9
Other receivables	1.5	1.2	1.2
Other non-current assets	9.9	7.9	9.2
Total non-current assets	366.2	375.6	371.0
Inventories	5.6	4.7	3.7
Trade receivables	69.2	46.7	60.6
Other receivables	0.8	0.8	0.6
Prepayments	13.4	17.4	14.3
Securities	642.0	459.1	585.4
Cash at bank and in hand	129.1	230.8	153.5
Total current assets	860.1	759.5	818.1
Total assets	1,226.3	1,135.1	1,189.1

Equity and liabilities

DKKm	30 June 2021	30 June 2020	31 Dec. 2020
Share capital	100.3	100.3	100.3
Reserve, translation adjustments	-2.8	-2.7	-2.6
Retained earnings	859.3	683.8	781.3
Total equity	956.8	781.4	879.0
Deferred tax	2.9	11.1	11.4
Financial institutions	115.8	120.5	118.1
Lease debt	4.7	7.7	6.3
Total non-current liabilities	123.4	139.3	135.8
Financial institutions	4.7	4.7	4.7
Lease debt	3.6	3.7	3.6
Trade payables	29.5	22.8	34.3
Income tax payable	33.9	47.0	9.0
Contract liabilities	4.3	8.4	8.6
Other payables	70.1	127.8	114.1
Total current liabilities	146.1	214.4	174.3
Total liabilities	269.5	353.7	310.1
Total equity and liabilities	1,226.3	1,135.1	1,189.1

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C

Consolidated statement of changes in equity

DKKm	Share capital	Reserve, translation adjustments	Retained earnings	Total equity
Equity 1 January 2020	100.3	-2.9	573.8	671.2
Changes in equity for the period
Net profit for the period	0.0	0.0	138.1	138.1
Translation adjustments, foreign companies	0.0	0.2	0.0	0.2
Other comprehensive income after tax	0.0	0.2	0.0	0.2
Total comprehensive income	0.0	0.2	138.1	138.3
Purchase of treasury shares	0.0	0.0	-29.2	-29.2
Share-based payment	0.0	0.0	1.1	1.1
Changes in equity for the period	0.0	0.2	110.0	110.2
Equity at 30 June 2020	100.3	-2.7	683.8	781.4
Equity 1 January 2021	100.3	-2.6	781.3	879.0
Changes in equity for the period
Net profit for the period	0.0	0.0	151.3	151.3
Translation adjustments, foreign companies	0.0	-0.2	0.0	-0.2
Other comprehensive income after tax	0.0	-0.2	0.0	-0.2
Total comprehensive income	0.0	-0.2	151.3	151.1
Tax on options	0.0	0.0	9.7	9.7
Sale of treasury shares	0.0	0.0	7.0	7.0
Share-based payment	0.0	0.0	0.8	0.8
Dividend paid	0.0	0.0	-100.3	-100.3
Dividend on treasury shares	0.0	0.0	9.5	9.5
Changes in equity for the period	0.0	-0.2	78.0	77.8
Equity at 30 June 2021	100.3	-2.8	859.3	956.8

North Media A/S Interim Report Q2 2021 / 14

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North Media A/S Interim Report Q2 2021 / 15

Consolidated cash flow statement

DKKm	Q2		Q2 YTD		full year
	2021	2020	2021	2020	2020
Net profit for the period, continuing activities	98.4	119.2	151.3	134.6	303.0
Adjustments for non-cash items	-23.7	-54.0	-4.8	4.3	-30.6
Changes in working capital	-34.0	51.2	-62.9	44.2	33.0
Cash flow from operating activities before net financials	40.7	116.4	83.6	183.1	305.4
Interest received	0.0	0.0	0.0	0.1	0.1
Interest paid	-1.4	-1.3	-2.4	-2.5	-5.2
Cash flow from ordinary activities before tax	39.3	115.1	81.2	180.7	300.3
Income tax paid	0.0	-0.1	-14.9	-0.5	-81.7
Cash flow from operating activities, continuing operations	39.3	115.0	66.3	180.2	218.6
Cash flow from operating activities, discontinued operations	0.0	-1.9	0.0	-2.1	-2.1
Cash flow from operating activities, total	39.3	113.1	66.3	178.1	216.5
Investments in intangible assets and PP&E	-3.9	-5.1	-8.4	-8.5	-16.4
Disposals of PP&E	0.3	2.1	0.4	2.1	2.1
Investment in securities	0.0	-31.8	-29.3	-31.8	-61.2
Divestment in securities	0.0	27.2	32.7	27.2	27.2
Dividend from securities	0.2	0.6	2.2	2.4	3.0
Purchase/investments in other non-current assets	0.0	-2.1	-0.4	0.0	-1.9
Cash flow from investing activities, continuing operations	-3.4	-9.1	-2.8	-8.6	-47.2
Cash flow from investing activities, discontinued operations	0.0	10.9	0.0	10.9	10.9
Cash flow from investing activities, total	-3.4	1.8	-2.8	2.3	-36.3
DKKm	Q2		Q2 YTD		full year
---	---	---	---	---	---
	2021	2020	2021	2020	2020
Repayment of non-current liabilities	-2.1	-1.8	-4.2	-4.1	-9.4
Purchase of treasury shares	0.0	0.0	0.0	-29.2	-29.2
Sale of treasury shares	0.0	0.0	7.0	0.0	0.0
Dividend paid	0.0	0.0	-90.7	0.0	-71.8
Cash flow from financing activities, continuing operations	-2.1	-1.8	-87.9	-33.3	-110.4
Cash flow from financing activities, discontinued operations	0.0	-0.4	0.0	-1.0	-1.0
Cash flow from financing activities, total	-2.1	-2.2	-87.9	-34.3	-111.4
Total cash flow for the period	33.8	112.7	-24.4	146.1	68.8
Cash and cash equivalents at 1 January	95.3	118.1	153.5	84.7	84.7
Cash at 30 June	129.1	230.8	129.1	230.8	153.5

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North Media A/S Interim Report Q2 2021 / 16

Note 1 Accounting policies

The consolidated interim financial statements include a summary of the consolidated financial statements of North Media A/S for the period 1 January to 30 June 2021. The consolidated interim financial statements are presented in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies.

At the date of publication of this interim report, a number of new or amended standards and interpretations have been approved by the IASB, none of which, however, are expected to have a material influence on North Media A/S.

In the consolidated interim financial statements, income tax on profit or loss before tax is calculated at a rate of 22%, adjusted for major permanent differences.

In connection with the divestment of North Media Aviser A/S in 2020, these activities were presented as discontinued operations in the 2020 financial statements, in a separate line item of the statement of comprehensive income, "Profit/Loss on discontinued operations". Similarly, cash flows from discontinued operations were presented separately for 2020 in the cash flow statement.

The accounting policies applied in these consolidated interim financial statements are consistent with those applied in the Annual Report for 2020, but with the adjustments for segment changes as set out in the interim report for the first quarter of 2021.

Note 2 Return on securities

DKKm	Q2 YTD		full year
	2021	2020	2020
Dividend	2.2	2.4	3.0
Net capital gains on shares	60.0	54.5	151.5
Total return on securities	62.2	56.9	154.5

All securities are stated at market value at 30 June 2021 (level 1).

Note 3 Discontinued operations

DKKm	Q2		Q2 YTD		full year
	2021	2020	2021	2020	2020
Revenue and other operating income	0.0	5.0	0.0	25.4	29.3
Costs	0.0	7.9	0.0	32.0	35.9
Loss before tax	0.0	-2.9	0.0	-6.6	-6.6
Tax	0.0	0.7	0.0	1.5	1.5
Operating profit/loss, discontinued operations	0.0	-2.2	0.0	-5.1	-5.1
Gains on disposal of North Media Aviser A/S	0.0	8.6	0.0	8.6	8.6
Profit/loss, discontinued operations	0.0	6.4	0.0	3.5	3.5

Due to the divestment of North Media Aviser, the above items are no longer consolidated.

At 30 June 2021, the balance sheet contains no outstanding assets or liabilities relating to the discontinued operations.

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Note 4 Segment information

Q2

DKKm	Last MileFK Distribution		Digital ServicesTotal		BoligPortal		Ofir		Bekey		Unallocated costs/elimin.*		Total
	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Segment revenue	222.5	221.4	37.9	35.5	21.7	21.5	9.2	4.5	7.0	9.5	0.0	0.0	260.4	256.9
Internal revenue	0.0	0.0	-1.5	-3.3	0.0	0.0	-0.1	0.0	-1.4	-3.3	0.0	0.0	-1.5	-3.3
External revenue	222.5	221.4	36.4	32.2	21.7	21.5	9.1	4.5	5.6	6.2	0.0	0.0	258.9	253.6
Revenue recognition
Immediately	222.5	221.4	12.7	9.0	0.0	0.0	9.1	4.5	3.5	4.5	-	-	235.2	230.4
Over time	0.0	0.0	23.7	23.2	21.7	21.5	0.0	0.0	2.1	1.7	-	-	23.7	23.2
External revenue	222.5	221.4	36.4	32.2	21.7	21.5	9.1	4.5	5.6	6.2	0.0	0.0	258.9	253.6
Direct costs	98.6	102.1	1.3	-1.1	0.2	0.3	1.3	0.4	-0.3	-1.8	2.5	1.7	102.4	102.7
Gross profit	123.9	119.3	35.1	33.3	21.5	21.2	7.8	4.1	5.9	8.0	-2.5	-1.7	156.5	150.9
Other costs	58.8	63.0	26.8	25.1	13.3	12.6	6.1	4.8	7.7	7.9	-2.2	-0.3	83.4	87.8
EBITDA	65.7	57.6	8.5	8.3	8.4	8.7	1.9	-0.6	-1.8	0.1	0.2	-0.9	74.4	65.0
Amortisation and depreciation	3.6	3.7	0.9	2.8	0.7	0.7	0.0	0.0	0.2	2.0	2.3	2.4	6.8	8.9
EBIT	62.1	53.9	7.6	5.5	7.7	8.0	1.9	-0.6	-2.0	-1.9	-2.1	-3.3	67.6	56.1
Share of profit/loss in associates	0.0	0.0	0.5	-0.5	0.6	-0.5	0.0	0.0	0.0	0.0	0.0	0.0	0.5	-0.5
Return on securities	-	-	-	-	-	-	-	-	-	-	-	-	61.3	101.7
Net financials	-	-	-	-	-	-	-	-	-	-	-	-	-1.8	-1.6
Profit before tax	-	-	-	-	-	-	-	-	-	-	-	-	127.6	155.7
Gross margin	55.7%	53.9%	96.4%	103.4%	99.1%	98.6%	85.7%	91.1%	105.4%	129.0%	-	-	60.4%	59.5%
EBITDA margin	29.5%	26.0%	23.4%	25.8%	38.7%	40.5%	20.9%	-13.3%	-32.1%	1.6%	-	-	28.7%	25.6%
EBIT margin	27.9%	24.3%	20.9%	17.1%	35.5%	37.2%	20.9%	-13.3%	-35.7%	-30.6%	-	-	26.1%	22.1%

Other information

North Media A/S' revenue consist of Last Mile activities of 222.5 DKKm and Digital Services activities of 36.4 DKKm.

North Media A/S Interim Report Q2 2021 / 17

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Note 4 Segment information, continued

Q2 YTD

	Last Mile		Digital Services		BoligPortal	Ofir	Bekey	Unallocated costs/ellml.*	Total
	FK Distribution		Total
DKKm	Q2 YTD 21	Q2 YTD 20	Q2 YTD 21	Q2 YTD 20	Q2 YTD 21	Q2 YTD 20	Q2 YTD 21	Q2 YTD 20	Q2 YTD 21	Q2 YTD 20	Q2 YTD 21	Q2 YTD 20	Q2 YTD 21	Q2 YTD 20
Segment revenue	431.3	446.5	73.1	68.0	42.1	40.7	16.9	9.2	14.3	18.1	0.0	0.0	504.4	514.5
Internal revenue	0.0	0.0	-2.8	-4.2	0.0	0.0	-0.2	-0.1	-2.8	-4.1	0.0	0.0	-2.8	-4.2
External revenue	431.3	446.5	70.3	63.8	42.1	40.7	16.7	9.1	11.5	14.0	0.0	0.0	501.6	510.3
Revenue recognition
Immediately	431.3	446.5	23.9	19.9	0.0	0.0	16.7	9.1	7.1	10.8	0.0	0.0	455.2	466.4
Over time	0.0	0.0	46.4	43.9	42.1	40.7	0.0	0.0	4.4	3.2	0.0	0.0	46.4	43.9
External revenue	431.3	446.5	70.3	63.8	42.1	40.7	16.7	9.1	11.5	14.0	0.0	0.0	501.6	510.3
Direct costs	188.7	200.0	2.6	1.3	0.4	0.4	2.5	1.1	-0.3	-0.2	5.0	3.8	196.3	205.1
Gross profit	242.6	246.5	67.7	62.5	41.7	40.3	14.2	8.0	11.8	14.2	-5.0	-3.8	305.3	305.2
Other costs	112.7	125.2	53.4	50.1	26.9	24.8	11.1	10.0	15.0	15.2	-3.9	-2.6	162.2	172.7
EBITDA	131.2	125.5	14.7	12.5	14.8	15.5	3.1	-2.0	-3.2	-1.0	-0.2	-0.1	145.7	137.9
Amortisation and depreciation	7.6	7.6	1.8	3.7	1.4	1.4	0.1	0.0	0.3	2.3	4.5	4.7	13.9	16.0
EBIT	123.6	117.9	12.9	8.8	13.4	14.1	3.0	-2.0	-3.5	-3.3	-4.7	-4.8	131.8	121.9
Share of profit/loss in associates	0.0	0.0	0.7	-0.5	0.8	-0.5	0.0	0.0	0.0	0.0	0.0	0.0	0.7	-0.5
Return on securities	-	-	-	-					-	-	-	-	62.2	56.9
Net financials	-	-	-	-					-	-	-	-	-2.4	-3.0
Profit before tax	-	-	-	-					-	-	-	-	192.3	175.3
Gross margin	56.2%	55.2%	96.3%	98.0%	99.0%	99.0%	85.0%	87.9%	102.6%	101.4%	-	-	60.9%	59.8%
EBITDA margin	30.4%	28.1%	20.9%	19.6%	35.2%	38.1%	18.6%	-22.0%	-27.8%	-7.1%	-	-	29.0%	27.0%
EBIT margin	28.7%	26.4%	18.3%	13.8%	31.8%	34.6%	18.0%	-22.0%	-30.4%	-23.6%	-	-	26.3%	23.9%

Other information

North Media A/S' revenue consists of Last Mile activities of DKKm 431.3 and Digital Services activities of DKKm 70.3.

North Media A/S Interim Report Q2 2021 / 18

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North Media A/S Interim Report Q2 2021 / 19

Note 5 Adjustment for non-cash operating items

DKKm	Q2		Q2 YTD		full year
	2021	2020	2021	2020	2020
Share of profit/loss in associates	-0.6	0.5	-0.7	0.5	1.1
Tax on profit/loss for the year	29.3	36.3	41.0	40.7	85.1
Amortisation and depreciation of assets	6.8	7.1	14.0	14.3	28.6
Gain/loss on disposals of assets	0.0	1.8	-0.1	1.7	1.6
Share-based payment	0.4	0.6	0.8	1.1	2.0
Special items, reversal	0.0	0.0	0.0	0.0	0.0
Net financials	1.7	1.4	2.4	2.9	5.5
Value adjustments, securities	-61.3	-101.7	-62.2	-56.9	-154.5
Total adjustments (non-cash)	-23.7	-54.0	-4.8	4.3	-30.6

Note 6 Changes in working capital

DKKm	Q2		Q2 YTD		full year
	2021	2020	2021	2020	2020
COVID-19 extension of payment deadlines for VAT and employee income taxes	-10.0	45.0	-30.0	45.0	30.0
Frozen holiday pay	-18.2	0.0	-18.2	0.0	0.0
Changes in ordinary working capital	-5.8	6.2	-14.7	-0.8	3.0
Changes in working capital	-34.0	51.2	-62.9	44.2	33.0

Note 7 Other payables

Other payables previously contained holiday pay of DKK 18.2m accumulated during the period holiday pay was frozen (1 September 2019 to 31 August 2020). The amount was paid in the second quarter of 2021.

Note 8 Special risks and elements of uncertainty for the rest of 2021

The Group's activities are distinct high-volume enterprises subject to high start-up costs and subsequent low unit costs, for which reason revenue growth would support a EBIT margin increase. Conversely, a decline in revenue would have a negative effect on the EBIT margin as it is only possible to slightly reduce costs in the short term. Moreover, operations are conducted in markets characterised by massive structural change, which adds to the uncertainty.

In addition, the spread of COVID-19 means the guidance provided for the rest of 2021 is subject to an increased level of uncertainty. The full-year guidance assumes a level of activity in Danish society as seen in the period up to mid-August 2021.

Note 9 Contingent liabilities and assets

Contingent liabilities

In a decision of 30 June 2020, the Competition and Consumer Authority decided that Forbruger-Kontakt A/S (FK Distribution) had violated the prohibition against abusing a dominant position by applying tying conditions in its contracts with customers during the period from 2018 to October 2019. In a decision of 28 April 2021, the Danish Competition Appeals Board upheld the Competition and Consumer Authority's decision. FK Distribution disagrees with the decision and has appealed the matter to the courts (the Maritime and Commercial High Court). Given the information currently available, a liability cannot be reliably estimated.

At 30 June 2021, no material changes had occurred in respect of the Group's contingent liabilities and assets.

Note 10 Subsequent events

The Board of Directors and the Executive Board are not aware of any significant events having occurred since 30 June 2021 which would have a material impact on the Group's financial position.

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North Media A/S

Gladsaxe Møllevej 28

DK - 2860 Søborg

Telephone: +45 39 57 70 00

E-mail: investor@northmedia.dk

www.northmedia.dk

CVR-no. 66 59 01 19

NORTH MEDIA A/S