North Media

Interim / Quarterly Report • Aug 17, 2022

Interim Report Q2 2022

Gladsaxe Møllevej 28, 2860 Søborg CVR-no. 66 59 01 19

Contents

Management commentary

Group developments Q2 2022	3
Last Mile Q2 2022 results	4
Digital Services Q2 2022 results	5
Developments at group level YTD (1H)	6
FY 2022 consolidated guidance	7
FY 2022 guidance by business area	8
Consolidated financial highlights	9
Results for 2022 YTD and balance sheet items	10
Results in associates	12
Group quarterly financial highlights	13

Interim Report

Management's statement	15
Consolidated statement of compreh. income	16
Consolidated balance sheet	17
Consolidated statement of changes in equity	18
Consolidated statement of cash flows	19
Notes	20

The Interim Report Q2-2022 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.

EBIT as expected

Revenue

Consolidated revenue improved slightly year on year in the second quarter. Revenue fell by 1.7% in Last Mile (FK Distribution), but was up 13.5% in Digital Services, with all three businesses contributing.

52 DKKm

EBIT

The drop in consolidated EBIT had been expected and was mainly due to higher distribution wage costs in Last Mile and the cost of growth initiatives in Digital Services, which included the acquisition of Boligmanager.

EBIT margin

The consolidated EBIT margin declined, as expected. EBIT margins were 22.7% in Last Mile and 10.2% in Digital Services. The EBIT margin was adversely affected by the acquisition of Boligmanager and the recognition of development costs in Bekey.

Development in consolidated revenue

Development in consolidated EBIT

Last Mile Q2 2022 results

Comparative figures for Q2 2021 in brackets (DKKm)

FK Distribution

• FK Distribution reported a 1.7% drop in total revenue. Revenue declined in the Danish packing and distribution business and grew in both minetilbud and the packing services for Deutsche Post.
• The year-earlier period was supported by orders being delayed from Q1 to Q2 due to the COVID-19 pandemic.

Packing and distribution in Denmark

• As expected, a slight structural loss of volume and changes in customer and product mixes had negative impacts on revenue, which were only partly offset by moderate price increases.
• In addition, the very high prices of paper led certain customers to reduce page counts and formats or select thinner and less expensive paper for their printed matter. The resulting lower weight reduced FK Distribution's revenue.
• The total volume of printed matter was 5.2% lower in the second quarter than in same quarter of last year due to orders being delayed from the first to the second quarter of 2021. FK Distribution continues to expect a drop in volumes of around 4% for the full year.
• Rising consumer and energy prices have raised consumers' interest in deals and leaflets, and retail chains have stepped

up their focus on special offers, private label, and low-cost products.

• Local newspaper numbers were stable, but with a distinct tendency towards thinner issues.
• There was an upward trend in activities involving selected mail items, with volumes increasing following an inflow of new customers.

Other activities

• Revenue from the minetilbud digital service grew in the double digits, driven in particular by more digital catalogues and more product feeds from both existing and new customers.
• minetilbud is expected to generate double-digit growth for the rest of 2022, driven by innovation and new product offers that will include Boostkoncept and minefordele.
• Income from packing for Deutsche Post rose after the collaboration was expanded from 143,000 to 475,000 households weekly as from 1. July 2021. However, the volume per household remains lower than originally anticipated, and the start-up of packing for the city of Lubeck has been pushed to Q4 2022.

Earnings

• As expected, EBIT was DKK 12.5m lower than in Q2 2021 due to an increase in variable costs across the value chain and the effect of reduced volumes and changes in customer and product mixes.
• Distribution costs increased due to higher wages paid to young deliverers and rising recruitment costs.
• Packing and transport costs were also higher, due to rising prices of paper for wrappers, extra wage costs to hourlypaid employees due to new formats and lower-quality paper as well as higher fuel prices.
• FK Distribution launched a number of measures to cut overhead costs in order to maintain a satisfactory EBIT margin.

Other matters

• The solar panel plant at the Taastrup facility was inaugurated on 31 May. When completely phased in, the 5,400 m2 facility combined with a battery solution will provide about 40% of the terminal's power consumption from Q3 onwards.
• A similar solar panel plant being planned for the terminal in Tilst, and installation will begin end of august 2022.
• FK Distribution began distributing unaddressed printed matters on the island of Bornholm on 1 June.

	Revenue	EBIT	EBIT margin
	218.7	49.6	22.7%
(222.5) (62.1) (27.9%)

North Media A/S Interim Report Q2 2022 / 4

Report

Digital Services Q2 2022 results

Comparative figures for Q2 2021 in brackets (DKKm)

Boligportal

• Generating 9.2% growth, Boligportal recorded its highest quarterly revenue ever in Q2 2022. Driving growth were new products and growing income from the advertising of rental units in the platform's marketplace.
• The sale of new products and services grew by 167% to make up almost 10% (<5%) of revenue.
• In June, Boligportal set new records for its revenue from partnerships and landlord advertising and for the number of signed move-in/out inspection reports and rental contracts.
• The market has recovered since the drop in the supply of vacant flats recorded in H2 2021. The number of ads in the marketplace increased, and more landlords purchased supplementary services.
• The acquisition of Boligmanager had a negative effect on EBIT in the amount of DKK 1.6m for depreciation, earn-out provisions and the company's operating costs.
• Adjusted for the Boligmanager acquisition, EBIT was up by DKK 0.1m compared to the same period last year.

Ofir

• Revenue was up 19.8% The core business of job ads grew by 27%, whereas revenue from the software licences business dropped by 20%, as expected.
• Advertising revenue from public sector customers grew in the high double digits, even though many public sector employers decided in June to postpone orders for large advertising packages until after the summer holidays.
• Growth in advertising revenue from private sector employers was relatively modest.
• The number of job campaigns involving social media grew which was fully consistent with the objective of strengthening Ofir's role as a SoMe market leader.
• Job market demand was higher than in Q2 2021, but after several quarters of market growth, a softening trend set in relative to Q1 2022.
• As expected, EBIT fell by DKK 0.5m due to an increase in business development costs and a new data platform, including the effects of new hires in 2021.

Bekey

• Revenue was up 19.6%, as Bekey won and initiated contracts with local authorities in Denmark, including contracts postponed from 2021.
• The 'Homecare DK' segment accounted for the lion's share of revenue and was profitable thanks to economies of scale.
• The 'Distributors' segment contributed to growth, but from a low starting point.
• Income from the 'Licences and Services' segment was up 17% and accounted for 62% of revenue (62%).
• Bekey incurred extra expenses from relocating Ukrainian IT developers to other and more secure areas following Russia's invasion. Bekey's system operations were not affected,
• EBIT was lower due to the decision to recognise SmartRelay development and installation costs, which were capitalised last year. Apart from this change, the EBIT loss was unchanged from last year.

	Revenue	23.7 (21.7)	Revenue	10.9 (9.1)		6.7 Revenue (5.6)
EBIT		6.2 (7.7)	EBIT	1.4 (1.9)		-3.4 EBIT (-2.0)
		Revenue		EBIT	EBIT margin
		41.3 (36.4)		4.2 (7.6)	10.2% (20.9%)

EBIT as expected

Revenue

Consolidated revenue was up by 1.3% year on year in H1 2022. Revenue was down by 1.1% in Last Mile (FK Distribution) and up by 16.4% in Digital Services on double-digit growth in all three businesses.

EBIT

Consolidated EBIT fell as expected by DKK 31.7m. The setback was due in particular to higher distribution wage costs in Last Mile, costs of growth initiatives in Digital Services, which included the acquisition of Boligmanager and the expenses of development costs in Bekey.

The consolidated EBIT margin fell as expected, by 6.6 percentage points. EBIT margins were 22.8% in Last Mile and 8.3% in Digital Services.

508 DKKm

Status of strategic priorities in 2022

Better than expected

• Ofir is ahead of schedule in the development of a new data platform and data warehouse. The data warehouse has been launched.
• FK Distribution is enjoying double-digit growth in digital distribution of offers and selected mail items, two business activities intended to help make up for the structural loss of volume in printed matter.
• BoligPortal is reporting higher-than-expected income from landlord advertising and partnerships.

As expected

• FK Distribution is experiencing a slight downward trend in volumes, as expected. The company seeks to mitigate the effects of higher prices of paper and rising distribution costs by continuing to optimise the core business.
• Ofir increased the number of paid job ads and continued to grow business in new job segments.
• BoligPortal's integration of Boligmanager is on target, but, unchanged, no significant revenue from Boligmanager is expected in 2022. BoligPortal and Boligmanager have merged their product and development teams with a view to accelerating the pace of development.
• In addition to growing its homecare business, Bekey is focused on winning new contracts and re-winning existing ones.

Not as expected

• Volumes per household under FK Distribution's contract with Deutsche Post have not met the parties' joint targets. The parties will begin a dialogue on how to increase momentum after the summer holidays.
• With one customer in operation and one customer with a pilot project, momentum in Bekey's 'Properties' segment is too slow. A new market approach is intended to activate the pipeline and increase penetration.

FY 2022 consolidated guidance range narrowed

North Media narrows its full-year 2022 revenue and EBIT guidance relative to the guidance ranges provided in the 2021 annual report. The companies are off to a good start to the year, but uncertainty remains high due to the war in Ukraine and related impact on inflation, while the high employment rate and other external factors are driving up costs.

Group revenue (DKKm)

The North Media Group now expects consolidated revenue in the range of DKK 1,015–1,040m, up from previously DKK 1,010–1,045m.

Accordingly, consolidated revenue is still expected to be in line with the 2021 figure.

EBIT (DKKm)

The Group now expects FY 2022 EBIT in the DKK 195– 220m range. The previous guidance was for DKK 190– 220m.

The consolidated EBIT margin for 2021 was 23.6%, and it is expected to be about 20% in 2022. EBIT is being affected by lower Last Mile earnings and by the acquisition of Boligmanager, which will reduce EBIT by about DKK 8m.

2022 guidance – group financial highlights (DKKm)

Revenue

1,015 – 1,040

Guidance provided on 4 May 2022	1,010-1,045
Guidance provided on 9 February 2022	1,010-1,045
Actual 2021:	1,034

EBIT

195 - 220

Guidance provided on 4 May 2022	190-220
Guidance provided on 9 February 2022	190-220
Actual 2021:	244

FY 2022 guidance by business area

Last Mile narrows revenue and EBIT guidance.

FK Distribution BoligPortal Ofir Bekey

• Revenue guidance narrowed, but revenue is still expected to decline by about 3%, while volumes of printed matter and local newspapers are forecast to be about 4% lower than in 2021.
• A potential expansion of the collaboration with Deutsche Post is not expected until Q4 2022 at the earliest.
• Revenue from minetilbud is now expected to be slightly higher than previously expected.
• EBIT guidance narrowed. EBIT margin is still expected to drop to about 23% due to substantial cost increases, including for distribution.

Guidance for 2022 (DKKm)

Interim Report Q2 2022 Revenue: 851-866

EBIT:	192-208
Interim Report Q1 2022
Revenue: EBIT:	850-870 190-210
Actual 2021 (DKKm)
Revenue:	888.8

EBIT: 249.0

Digital Services narrows revenue guidance and raises guidance for EBIT.

• Revenue guidance narrowed, EBIT guidance raised.
• Strong growth in revenue from partnerships and advertising products to landlords.
• EBIT for the core business is expected to be higher than the 2021 figure, but Boligmanager's EBIT and the provision for the residual purchase price and depreciation of the purchase price will reduce 2022 EBIT by approximately DKK 8m.

Guidance for 2022 (DKKm)

Interim Report Q2 2022

Revenue: 94-98 EBIT: 21-25 Interim Report Q1 2022 Revenue: 93-99 EBIT: 18-22 Actual 2021 (DKKm) Revenue: 84.8

EBIT: 26.8

• EBIT margin of around 13%.

ture.

Guidance for 2022 (DKKm)

Interim Report Q2 2022 Revenue: 43-46 EBIT: 5-7

• Revenue guidance narrowed, but EBIT guidance remains unchanged. • For the year, the increased revenue is offset by increased costs of expanding the organisation to secure growth and development opportunities for the fu-

Interim Report Q1 2022 REvenue: 42-46 EBIT: 5-7

Actual 2021 (DKKm) Revenue: 36.0 EBIT: 5.6

• Revenue guidance narrowed, but EBIT guidance remains unchanged.
• Higher costs for team of IT developers in Ukraine expected to be offset by cost savings in other parts of the organisation.
• Constructive dialogue with several customer leads in the Distributor and Properties segments.

Guidance for 2022 (DKKm)

Interim Report Q2 2022
Revenue:	27-30
EBIT:	-14 til -12

Interim Report Q1 2022
Revenue:	25-30
EBIT:	-14 til -12

Actual 2021 (DKKm)

Omsætning: 24.0 EBIT: -29.3

Revenue

851-866 (formerly 850-870)

EBIT

12-20 (formerly 9-17)

EBIT

Consolidated financial highlights

	Q2		Q2 YTD		full year
DKKm	2022	2021	2022	2021	2021
Income statement
Revenue	260.0	258.9	508.2	501.6	1,033.6
Gross profit	146.9	156.5	289.0	305.3	620.5
EBITDA	58.9	74.4	114.1	145.7	292.2
Amortisation, depreciation and impair
ments losses etc.	7.0	6.8	14.0	13.9	47.8
EBIT	51.9	67.6	100.1	131.8	244.4
Return on securities	-115.7	61.3	-210.6	62.2	103.2
Financials, net	-0.4	-1.8	-1.2	-2.4	-4.8
Profit/loss before tax	-62.2	127.6	-107.7	192.3	347.0
Tax for the period	-14.2	29.3	-24.4	41.0	73.4
Net profit/loss for the period	-48.0	98.3	-83.3	151.3	273.6
Comprehensive income	-48.0	98.3	-83.3	151.1	273.3
Net profit for the period excluding return
on securities	42.2	50.5	81.0	102.8	193.1
Balance sheet, end period
Total assets	-	-	1,142.2	1,226.3	1,320.6
Shareholders' equity	-	-	910.8	956.8	1,080.0
Net interest-bearing cash position	-	-	549.0	608.4	758.0
Properties	-	-	242.3	244.6	246.4
Mortgage Debt	-	-	-115.7	-120.5	-118.1
Capital resources	-	-	670.7	771.1	882.8
Net working capital (NWC)	-	-	-18.1	-13.4	-33.7
Invested capital	-	-	361.8	348.4	322.0
Investments in property, plant and equip
ment	-	-	3.7	5.3	18.8
Free cash flow	-	-	93.2	74.2	224.3

	Q2		Q2 YTD	full year
DKKm	2022	2021	2022	2021	2021
Cash flow statement
Cash flows from operating activities	56.1	39.3	93.2	66.3	156.1
Cash flows from investing activities	-21.3	-3.4	-24.1	-2.8	-88.2
Cash flows from financing activities	-1.4	-2.1	-85.1	-87.9	-91.7
Total cash flows	33.4	33.8	-16.0	-24.4	-23.8
Other information
Average number of employees	-	-	422	406	411
Number of shares of DKK 5 nominal value
each, end of period (thousands)	-	-	20,055	20,055	20,055
Treasury shares (thousands)	-	-	1,629	1,909	1,909
Share price end of period, DKK	-	-	66.4	112.2	108.0
Ratios
Gross margin (%)	56.5%	60.4%	56.9%	60.9%	60.0%
EBIT margin (%)	20.0%	26.1%	19.7%	26.3%	23.6%
Equity ratio (%)	-	-	79.7%	78.0%	81.8%
Return on equity (ROE) (%) 1)	-	-	-16.7%	33.0%	27.9%
Return on capital employed (ROIC) 1)	-	-	58.6%	81.3%	78.6%
Earnings per share (EPS)	-2.6	5.4	-4.5	8.4	15.0
Diluted earnings per share (EPS-D)	-2.6	5.3	-4.5	8.2	14.7
Earnings per share excluding return on se
curities (EPS-adj)	2.3	2.8	4.4	5.7	10.6
Price/Earnings (P/E) 1)	-	-	-	6.7	7.2
Price/Book Value (P/BV)	-	-	1.5	2.4	2.0
Cash flow per share (CFPS)	3.0	2.2	5.1	3.7	8.6

For ratio definitions, see note 3 to Annual Report 2021.

1) Profit for the period annualised

Results for 2022 YTD and selected balance sheet items

Share of profit/loss in associates

Karman Connect (formerly Lead Supply), the 50%-owned subsidiary contributed DKK 4.0m of the H1 2022 profit (2021: DKK 0.7m). See separate section on page 12.

Return on securities

The securities portfolio yielded a net negative (unrealised) return for H1 2022 of DKK 211m, as compared with a positive return of DKK 62m in H1 2021. This equals a negative return of 27.9% compared to a positive return of 10.7% last year. By comparison, the MSCI World index produced a negative return of 21% in H1 2022 compared with a positive return of 12% in H1 2021.

Quarterly return on securities (DKKm)

Net result for the period

The result after tax for the H1 2022 period was a loss of DKK 83.3m (H1 2021: net profit of DKK 151.3m). This year's EBIT was DKK 32m lower than last year and the return on securities was DKK 273m lower.

Earnings per share (exclusive of the return on securities) for H1 2022 were DKK 4.4 (H1 2021: DKK 5.7). Earnings per share (diluted) for H1 2022 were negative at DKK 4.5 (H1 2021: positive at DKK 8.4).

Cash flows from operating activities

Cash flows from operations amounted to DKK 93m in H1 2022 against DKK 66m in the yearearlier period, when cash flows were adversely affected by about DKK 58m in deferred payments of employee income taxes, payment of frozen holiday pay and increased corporate income tax.

The free cash flows amounted to DKK 93m against DKK 74m in H1 2021.

Securities portfolio

At 30 June 2022, the securities portfolio consisted of 18 highly liquid listed shares and share-based investment associations with a combined market value of DKK 557.0m (DKK 753.1m at 31 December 2021). Since the end of 2015, the value of the securities portfolio has appreciated from DKK 196m to DKK 557.0m. Of this value accretion, DKK

Securities portfolio market value

(DKKm)	31/07/2022	30/06/2022	31/12/2021
Novo Nordisk	106.8	98.4	73.5
Genmab	65.1	57.6	66.0
DSV	61.0	49.6	76.4
Microsoft	51.2	46.0	55.2
Teradyne	44.2	38.5	64.4
Ørsted	42.3	37.1	41.8
NVIDIA Corp	39.8	32.6	57.9
SimCorp	32.5	30.9	42.9
Amazon	39.4	30.4	43.8
Apple	35.6	29.4	34.9
MasterCard	25.8	22.6	23.6
Sea	16.7	14.4	44.0
Facebook	13.9	13.9	26.5
MercadoLibre	17.8	13.7	26.5
Infinion Techology	15.8	13.7	24.2
Fundamental Invest ABC	12.3	10.3	14.2
EQT AB	12.7	9.4	23.3
Fundamental Invest ABD	10.1	8.5	14.0
Total	643.0	557.0	753.1

203m was driven by capital value appreciation, while net share purchases have accounted for DKK 158m. In other words, more than half of the gains on the securities portfolio since the end of 2015 are due to appreciating prices in spite of the substantial price falls recorded in H1 2022, which produced unrealised capital losses of DKK 211m.

The risk on the portfolio at 30 June 2022 was calculated at 29.6%. The risk (as measured by the same shares) at 31 December 2021 was 19.4%. 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 140.1m.

The value of the securities portfolio at 31 July 2022 was DKK 643.0m, and a return of DKK 86.0m.

Capital resources

The Group had capital resources of DKK 671m at 30 June 2022, consisting of DKK 114m in cash and DKK 557m in liquid securities. At 31 December 2021, capital resources amounted to DKK 883m.

Capital resources have been reduced by DKK 212m since the start of the year after the payment of DKK 92m in dividends and an unrealised loss on securities of DKK 211m.

The Group's properties

The Group owns a number of properties, including mainly the head office properties in Søborg, Taastrup and Tilst. The properties are recognised at a total carrying amount of DKK

242m (DKK 246m at 31 December 2021) and have been mortgaged against long-term, fixed-rate loans at a total of DKK 116m (DKK 118m at 31 December 2021).

The Group's business segments 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 costs of IR activities and parts of shared group functions, including parts of board members' fees.

An agreement was concluded at the end of October 2021 for the installation of solar panels and a battery at the property in Taastrup. The solar panel plant was inaugurated on 31 May 2022, whereas the battery solution has been delayed by a couple of months due to component shortages.

Once the solar panels and the battery solution have been installed, about 40% of power consumption at the Taastrup site will be generated in-house by solar panels. The solar panels installed cover an area of 2,100 m2 on the roof of the building and 3,300 m2 on the ground, for a total of 5,400 m2 with an installed capacity of 1,100 kWp.

A similar solar panel plant being planned for the property in Tilst and the installation will begin at the end of August 2022.

Money deposit in securities

• Liquid listed shares and investment associations
• Industries offering growth potential, also on a 5Y-10Y horizon
• Focused portfolio of 15 to 25 securities
• Long-term and value-protecting investments

Equity and the portfolio of treasury shares

Equity amounted to DKK 910.8m at 30 June 2022, which was DKK 169.2m less than at 31 December 2021.

The equity reduction was mainly due to dividend paid of DKK 92m along with the loss for the period of DKK 83.3m and the sale of treasury shares for DKK 10.0m in relation to the Group's share option scheme.

The Group's holding of treasury shares stood at 1,629,000 shares at 30 June 2022, equal to 8.12% of the share capital of North Media A/S.

The holding of treasury shares is intended to cover 337,500 share options awarded to senior executives as part of the share option programme introduced in 2018. The holding of treasury shares may also be used for full or partial payment of any future acquisitions of or investments to be made in other companies.

Purpose of capital resources

• To maintain sufficient financial strength to exploit market opportunities, meet strategic objectives and to fend off both new and existing competitors
• To have the financial strength to acquire businesses that hold potential for positive synergies and scalability for our existing businesses
• To have the financial strength to pay stable, attractive dividends , and make occasional share buybacks
• To be financially robust enough to withstand society lockdowns and other significant changes in society during periods of COVID-19 surges or the like
• To have the financial strength to be financially independent of financial funds from shareholders or lenders

North Media share

The price of North Media shares declined from DKK 108.0 per share at 31 December 2021 to DKK 66.4 per share at 30 June 2022, corresponding to a drop of 39%. The decline was for 34% when adjusted for the dividend of DKK 5 per share paid out.

By comparison, the OMX Copenhagen Mid Cap index fell by 19% during the period.

Results in associates – Karman Connect (formerly Lead Supply)

Strong growth and record earnings

The 50%-owned fintech business Karman Connect A/S (formerly Lead Supply A/S) continued to generate revenue growth in Q2 2022, reporting a strong earnings improvement. The realised EBIT for the H1 2022 period was DKK 10.6m, up from DKK 2.0m in H1 2021.

The Q2 EBIT was the best quarterly performance ever for the company, exceeding its record Q1 earnings by DKK 0.4m.

North Media recognises DKK 4.0m profit from Karman Connect under share of profit/loss in associates, which is shown after tax.

Growth was driven by optimised initiatives to acquire customers and build data insights, targeted efforts in core markets, higher lending volumes and better prices from the banks for borrower referrals.

Change of name

Lead Supply A/S changed its name to Karman Connect A/S effective on 16 June. The name change is a natural next step in the company's efforts to internationalise its business.

Karman Connect operates in several European markets and is reporting decent improvements in most of these markets. Driving the improvement was a change to the business model implemented in 2020, when the company refocused its business from growth

through acquisitions of SEO sites to optimising its core business and concentrating on individual leads in the individual countries.

The changed approach has produced better results for customers and better interaction for users. The improvements have been achieved through increased data insights, new systems enabling customers to make better use of their resources and the development of additional commercial skills. In addition, the company has optimised existing offers to customers and launched new ones.

Guidance for 2022

Karman Connect expects to continue its strong growth in revenue in 2022 and to continue improving earnings. Growth will likely soften in the second half of the year, both because the company already generated strong growth in H2 2021 and because consumer borrowing appetite has slowed and banks have tightened their credit policies in most markets.

The improved earnings performance has accelerated a number of hirings, and the company plans to invest for further growth in the new markets.

The guidance for 2022 is subject to increased uncertainty due to the war in Ukraine, and that inflation has increased throughout the EU. How this will affect consumer willingness to borrow and banks' future credit policies remains to be seen.

Highlights, Karman Connect (DKKm)	H1-2022	H1-2021	2021
Revenue	41.6	24.4	63.2
EBITDA	10.6	2.0	10.8
EBIT	10.6	2.0	10.8
Result before tax	10.4	1.9	10.7
Result after tax	8.1	1.5	8.4
EBITDA-margin	25.5%	8.2%	17.1%
EBIT-margin	25.5%	8.2%	17.1%
Average number of employees	15	12	13

EBITDA – rolling 12 months (DKKm)

Group quarterly financial highlights - revenue

	Q2 YTD		Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
DKKm	2022	2021		2022				2021				2020
Revenue
Last Mile
Packing and distribution	407.3	415.0	209.4	197.9	243.3	205.0	215.8	199.2	233.6	219.8	210.4	214.5
Online	19.1	16.3	9.3	9.8	4.6	4.6	6.7	9.6	5.4	8.3	11.0	10.6
Last Mile, total	426.4	431.3	218.7	207.7	247.9	209.6	222.5	208.8	239.0	228.1	221.4	225.1
Index cp. same period last year	98.9	96.6	98.3	99.5	103.7	91.9	100.5	92.8	91.3	105.7	92.1	103.8
Digital Services
BoligPortal	46.4	42.1	23.7	22.7	20.8	21.9	21.7	20.4	20.0	21.6	21.5	19.2
Index cp. same period last year	110.2	103.4	109.2	111.3	104.0	101.4	100.9	106.3	117.6	114.9	124.3	117.8
Ofir	22.1	16.7	10.9	11.2	10.4	8.9	9.1	7.6	6.6	5.2	4.5	4.6
Index cp. same period last year	132.3	183.5	119.8	147.4	157.6	171.2	202.2	165.2	157.1	136.8	104.7	102.2
Bekey	13.3	11.5	6.7	6.6	6.5	6.0	5.6	5.9	8.9	5.7	6.2	7.8
Index cp. same period last year	115.7	82.1	119.6	111.9	73.0	105.3	90.3	75.6	107.2	114.0	134.8	118.2
Digital Services, total	81.8	70.3	41.3	40.5	37.7	36.8	36.4	33.9	35.5	32.5	32.2	31.6
Index cp. same period last year	116.4	110.2	113.5	119.5	106.2	113.2	113.0	107.3	120.3	117.8	122.9	115.3
Revenue, total	508.2	501.6	260.0	248.2	285.6	246.4	258.9	242.7	274.5	260.6	253.6	256.7
Index cp. same period last year	101.3	98.3	100.4	102.3	104.0	94.6	102.1	94.5	94.2	107.1	95.1	105.1

Group quarterly financial highlights - EBIT

	Q2 YTD		Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
DKKm	2022	2021		2022				2021				2020
EBIT
Last Mile
FK Distribution	97.1	123.6	49.6	47.5	74.1	51.3	62.1	61.5	56.8	59.0	53.9	64.0
EBIT margin	22.8%	28.7%	22.7%	22.9%	29.9%	24.5%	27.9%	29.5%	23.8%	25.9%	24.3%	28.4%
Digital Services
BoligPortal	11.4	13.4	6.2	5.2	6.7	6.7	7.7	5.7	6.0	7.1	8.0	6.1
EBIT margin	24.6%	31.8%	26.2%	22.9%	32.2%	30.6%	35.5%	27.9%	30.0%	32.9%	37.2%	31.8%
Ofir	2.9	3.0	1.4	1.5	1.4	1.2	1.9	1.1	0.5	-0.5	-0.6	-1.4
EBIT margin	13.1%	18.0%	12.8%	13.4%	13.5%	13.5%	20.9%	14.5%	7.6%	-9.6%	-13.3%	-30.4%
Bekey	-7.5	-3.5	-3.4	-4.1	-23.4	-2.4	-2.0	-1.5	-1.5	-2.0	-1.9	-1.4
EBIT margin	-56.4%	-30.4%	-50.7%	-62.1%	-360.0%	-40.0%	-35.7%	-25.4%	-16.9%	-35.1%	-30.6%	-17.9%
Digital Services, total	6.8	12.9	4.2	2.6	-15.3	5.5	7.6	5.3	5.0	4.6	5.5	3.3
EBIT margin	8.3%	18.3%	10.2%	6.4%	-40.6%	14.9%	20.9%	15.6%	14.1%	14.2%	17.1%	10.4%
Unallocated income/cost	-3.8	-4.7	-1.9	-1.9	-1.8	-1.2	-2.1	-2.6	-3.9	-3.2	-3.3	-1.5
EBIT	100.1	131.8	51.9	48.2	57.0	55.6	67.6	64.2	57.9	60.4	56.1	65.8
EBIT margin	19.7%	26.3%	20.0%	19.4%	20.0%	22.6%	26.1%	26.5%	21.1%	23.2%	22.1%	25.6%

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 2022.

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 statements give a true and fair view of the Group's assets, liabilities and financial position at 30 June 2022 and of the results of the group's operations and cash flows for the period 1 January to 30 June 2022.

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 2021 Annual Report.

Søborg, 17 August 2022

Executive Board

Kåre Stausø Wigh CFO

Lisbeth Britt Larsen Group CHRO

Board of Directors

Ole Elverdam Borch Chairman

Lasse Ingemann Brodt CEO

Richard Gustav Bunck Vice-Chairman

Ulrik Holsted-Sandgreen Ulrik Falkner Thagesen Ann-Sofie Østberg Bjergby

Consolidated statement of comprehensive income

	Q2			Q2 YTD
DKKm	2022	2021	2022	2021	2021
Revenue	260.0	258.9	508.2	501.6	1,033.6
Direct costs	66.5	58.7	127.1	111.2	236.7
Direct staff costs	46.6	43.7	92.1	85.1	176.4
Gross profit	146.9	156.5	289.0	305.3	620.5
Staff costs	58.7	55.6	114.4	108.0	221.0
Other external costs	30.7	27.8	63.2	54.2	112.2
Amortisation, depreciation and im
pairments losses etc.	7.0	6.8	14.0	13.9	47.8
Other operating income	1.4	1.3	2.7	2.6	4.9
Operating profit (EBIT)	51.9	67.6	100.1	131.8	244.4
Share of profit/loss in associates	2.0	0.5	4.0	0.7	4.2
Return on securities	-115.7	61.3	-210.6	62.2	103.2
Financial income	0.2	0.0	0.3	0.3	0.5
Financial costs	0.6	1.8	1.5	2.7	5.3
Profit/loss before tax	-62.2	127.6	-107.7	192.3	347.0
Tax on profit/loss for the period	-14.2	29.3	-24.4	41.0	73.4
Net profit for the period	-48.0	98.3	-83.3	151.3	273.6
Attributable, net profit/loss
Shareholders in North Media A/S	-48.0	98.3	-83.3	151.3	273.6
	-48.0	98.3	-83.3	151.3	273.6
Earnings per share, in DKK
Earnings per share (EPS) - total	-2.6	5.4	-4.5	8.4	15.0
Diluted earnings per share (EPS-D) -
total	-2.6	5.3	-4.5	8.2	14.7
Earnings per share excluding return on securities (EPS-adj)	2.3	2.8	4.4	5.7	10.6

	Q2		Q2 YTD	full year
DKKm	2022	2021	2022	2021	2021
Net profit for the period	-48.0	98.3	-83.3	151.3	273.6
Financial statement items that may later be reclassified to the income statement:
Translation adjustments, foreign companies	0.0	0.0	0.0	-0.2	-0.3
Other comprehensive income	0.0	0.0	0.0	-0.2	-0.3
Comprehensive income	-48.0	98.3	-83.3	151.1	273.3
Attributable, comprehensive in come
Shareholders in North Media A/S	-48.0	98.3	-83.3	151.1	273.3
	-48.0	98.3	-83.3	151.1	273.3

Consolidated balance sheet

Assets

	30 June	30 June	31 Dec
DKKm	2022	2021	2021
Goodwill	40.0	39.1	39.1
Other intangible assets	8.3	9.5	8.9
Software	5.0	9.7	1.4
Intangible assets	53.3	58.3	49.4
Land and buildings	228.5	232.3	233.6
Investment property	16.8	17.2	16.9
Plant and machinery	27.7	38.8	29.1
Operating equipment, fixtures and fittings	8.9	9.7	10.0
Property, plant and equipment	281.9	298.0	289.6
Investments in associates	11.1	6.9	8.1
Other securities and investments	3.4	1.5	2.2
Deferred tax asset	0.0	0.0	0.1
Other receivables	1.3	1.5	1.2
Other non-current assets	15.8	9.9	11.6
Total non-current assets	351.0	366.2	350.6
Inventories	5.9	5.6	5.6
Trade receivables	59.9	69.2	57.5
Income tax receivables	38.2	0.0	6.3
Other receivables	0.8	0.8	1.5
Prepayments	15.7	13.4	16.3
Securities	557.0	642.0	753.1
Cash at bank and in hand	113.7	129.1	129.7
Total current assets	791.2	860.1	970.0
Total assets	1,142.2	1,226.3	1,320.6

Equity and liabilities

	30 June	30 June	31 Dec
DKKm	2022	2021	2021
Share capital	100.3	100.3	100.3
Reserve, translation adjustments	0.0	-2.8	-2.9
Retained earnings	810.5	859.3	982.6
Total equity	910.8	956.8	1,080.0
Deferred tax	8.0	2.9	0.0
Financial institutions	111.0	115.8	113.3
Lease debt	2.6	4.7	3.3
Total non-current liabilities	121.6	123.4	116.6
Financial institutions	4.7	4.7	4.8
Lease debt	3.4	3.6	3.4
Trade payables	31.2	29.5	44.7
Income tax payable	0.0	33.9	0.0
Contract liabilities	7.2	4.3	5.4
Other payables	63.3	70.1	65.7
Total current liabilities	109.8	146.1	124.0
Total liabilities	231.4	269.5	240.6
Total equity and liabilities	1,142.2	1,226.3	1,320.6

Consolidated statement of changes in equity

		Reserve,
	Share	translation	Retained	Total
DKKm	capital	adjustments	earnings	equity
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
Equity 1 January 2022	100.3	-2.9	982.6	1,080.0
Changes in equity for the period
Net profit for the period	0.0	0.0	-83.3	-83.3
Reserve dissolved in connection with closure of foreign activities	0.0	2.9	-2.9	0.0
Other comprehensive income after tax	0.0	2.9	-2.9	0.0
Total comprehensive income	0.0	2.9	-86.2	-83.3
Tax on options	0.0	0.0	-4.3	-4.3
Sale of treasury shares	0.0	0.0	10.1	10.1
Share-based payment	0.0	0.0	0.4	0.4
Dividend paid	0.0	0.0	-100.3	-100.3
Dividend on treasury shares	0.0	0.0	8.2	8.2
Changes in equity for the period	0.0	2.9	-172.1	-169.2
Equity at 30 June 2022	100.3	0.0	810.5	910.8

Consolidated statement of cash flows

	Q2			Q2 YTD
DKKm	2022	2021	2022	2021	2021
Net profit for the period	-47.9	98.3	-83.3	151.3	273.6
Adjustments for non-cash items	107.0	-23.7	197.8	-4.8	19.7
Changes in working capital	-2.3	-33.9	-15.5	-62.9	-42.8
Cash flow from operating activities before
net financials	56.8	40.7	99.0	83.6	250.5
Interest received	0.1	0.0	0.1	0.0	0.5
Interest paid	-0.6	-1.4	-1.4	-2.4	-4.9
Cash flow from ordinary activities before
tax	56.3	39.3	97.7	81.2	246.1
Income tax paid	-0.2	0.0	-4.5	-14.9	-90.0
Cash flow from operating activities, total	56.1	39.3	93.2	66.3	156.1
Investments in intangible and tangible as
sets	1.5	-3.9	-5.4	-8.4	-25.5
Sale of property, plant and equipment	0.0	0.3	0.0	0.4	0.5
Dividend from associates	0.0	0.0	1.0	0.0	2.2
Investment in securities	-19.3	0.0	-19.3	-29.3	-185.7
Divestment of securities	0.0	0.0	0.0	32.7	118.4
Dividend from securities	0.9	0.2	4.8	2.2	2.9
Purchase of subsidiary	-4.0	0.0	-4.0	0.0	0.0
Investments in other non-current assets	-0.4	0.0	-1.2	-0.4	-0.9
Sale of other non-current assets	0.0	0.0	0.0	0.0	-0.1
Cash flow from investing activities, total	-21.3	-3.4	-24.1	-2.8	-88.2
Repayment of non-current liabilities	-1.5	-2.1	-3.1	-4.2	-8.0
Sale of treasury shares	0.1	0.0	10.1	7.0	7.0
Dividend paid	0.0	0.0	-92.1	-90.7	-90.7
Cash flow from financing activities, total	-1.4	-2.1	-85.1	-87.9	-91.7
Total cash flow for the period	33.4	33.8	-16.0	-24.4	-23.8
Cash and cash equivalents beginning of
period	80.3	95.3	129.7	153.5	153.5
Cash and cash equivalents, end of period	113.7	129.1	113.7	129.1	129.7

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 2022. 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, but none of these 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. A loss on the Group's security portfolio for the full year would be deductible against the operating profit expected to be realised.

The accounting policies applied in the consolidated interim financial statements are consistent with those applied in the Annual Report for 2021,

Note 2 Return on securities

	Q2		Q2 YTD	full year
DKKm	2022	2021	2022	2021	2021
Dividend	0.9	0.2	4.8	2.2	2.9
Net capital gains/losses on shares	-116.6	61.1	-215.4	60.0	100.3
Total return on securities	-115.7	61.3	-210.6	62.2	103.2

All securities are stated at market value at 30 June 2022 (level 1).

Q2

	Last Mile		Digital Services								Unallocated costs/
	FK Distribution		Total		BoligPortal		Ofir			Bekey	elimi.*)			Total
DKKm	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Segment revenue	218.7	222.5	42.8	37.9	23.7	21.7	11.0	9.2	8.1	7.0	0.0	0.0	261.5	260.4
Internal revenue	0.0	0.0	-1.5	-1.5	0.0	0.0	-0.1	-0.1	-1.4	-1.4	0.0	0.0	-1.5	-1.5
External revenue	218.7	222.5	41.3	36.4	23.7	21.7	10.9	9.1	6.7	5.6	0.0	0.0	260.0	258.9
Revenue recognition
Immediately	218.7	222.5	15.3	12.7	0.0	0.0	10.9	9.1	4.4	3.5	-	-	234.0	235.2
Over time	0.0	0.0	26.0	23.7	23.7	21.7	0.0	0.0	2.3	2.1	-	-	26.0	23.7
External revenue	218.7	222.5	41.3	36.4	23.7	21.7	10.9	9.1	6.7	5.6	0.0	0.0	260.0	258.9
Direct costs	110.4	101.1	3.9	2.7	0.3	0.2	1.7	1.4	1.9	1.1	-1.2	-1.4	113.1	102.4
Gross profit	108.3	121.4	38.9	35.2	23.4	21.5	9.3	7.8	6.2	5.9	-0.3	-0.1	146.9	156.5
Other external costs	58.9	58.8	33.7	26.9	16.3	13.3	7.9	5.9	9.5	7.7	-3.2	-2.3	89.4	83.4
EBITDA	53.1	65.7	5.4	8.5	7.3	8.4	1.4	1.9	-3.3	-1.8	0.4	0.2	58.9	74.4
Amortisation, depreciation and im
pairments losses etc.	3.5	3.6	1.2	0.9	1.1	0.7	0.0	0.0	0.1	0.2	2.3	2.3	7.0	6.8
EBIT	49.6	62.1	4.2	7.6	6.2	7.7	1.4	1.9	-3.4	-2.0	-1.9	-2.1	51.9	67.6
Share of profit/loss in associates	-	-	-	-	-	-	-	-	-	-	2.0	0.5	2.0	0.5
Return on securities	-	-	-	-	-	-	-	-	-	-	-	-	-115.7	61.3
Net financials	-	-	-	-	-	-	-	-	-	-	-	-	-0.4	-1.8
Profit/loss before tax	-	-	-	-	-	-	-	-	-	-	-	-	-62.2	127.6
Gross margin	49.5%	54.6%	94.2%	96.7%	98.7%	99.1%	85.3%	85.7%	92.5%	105.4%	-	-	56.5%	60.4%
EBITDA margin	24.3%	29.5%	13.1%	23.4%	30.8%	38.7%	12.8%	20.9%	-49.3%	-32.1%	-	-	22.7%	28.7%
EBIT margin	22.7%	27.9%	10.2%	20.9%	26.2%	35.5%	12.8%	20.9%	-50.7%	-35.7%	-	-	20.0%	26.1%

* Internal revenue is eliminated in other operating expenses. Other items relate to unallocated expenses.

Q2 YTD

	Last Mile		Digital Services								Unallocated costs/
		FK Distribution		Total		BoligPortal		Ofir		Bekey		elimi.*)		Total
					Q2 YTD	Q2 YTD	Q2 YTD	Q2 YTD	Q2 YTD	Q2 YTD
DKKm	Q2 YTD 22	Q2 YTD 21	Q2 YTD 22	Q2 YTD 21	22	21	22	21	22	21	Q2 YTD 22	Q2 YTD 21	Q2 YTD 22	Q2 YTD 21
Segment revenue	426.4	431.3	84.9	73.3	46.4	42.1	22.4	16.9	16.1	14.3	0.0	0.0	511.3	504.6
Internal revenue	0.0	0.0	-3.1	-3.0	0.0	0.0	-0.3	-0.2	-2.8	-2.8	0.0	0.0	-3.1	-3.0
External revenue	426.4	431.3	81.8	70.3	46.4	42.1	22.1	16.7	13.3	11.5	0.0	0.0	508.2	501.6
Revenue recognition
Immediately	426.4	431.3	30.8	23.9	0.0	0.0	22.1	16.7	8.7	7.1	0.0	0.0	457.2	455.2
Over time	0.0	0.0	51.0	46.4	46.4	42.1	0.0	0.0	4.6	4.4	0.0	0.0	51.0	46.4
External revenue	426.4	431.3	81.8	70.3	46.4	42.1	22.1	16.7	13.3	11.5	0.0	0.0	508.2	501.6
Direct costs	213.5	193.6	8.4	5.5	0.4	0.4	3.9	2.7	4.0	2.5	-2.7	-2.8	219.2	196.3
Gross profit	212.9	237.7	76.5	67.8	46.0	41.7	18.5	14.2	12.1	11.8	-0.4	-0.2	289.0	305.3
Other external costs	116.0	112.6	68.0	53.5	33.1	27.3	15.6	11.1	19.4	15.0	-6.4	-3.9	177.6	162.2
EBITDA	104.3	131.2	9.0	14.7	13.4	14.8	2.9	3.1	-7.3	-3.2	0.8	-0.2	114.1	145.7
Amortisation, depreciation and im
pairments losses etc.	7.2	7.6	2.2	1.8	2.0	1.4	0.0	0.1	0.2	0.3	4.6	4.5	14.0	13.9
EBIT	97.1	123.6	6.8	12.9	11.4	13.4	2.9	3.0	-7.5	-3.5	-3.8	-4.7	100.1	131.8
Share of profit/loss in associates	-	-	-	-	-	-	-	-	-	-	4.0	0.7	4.0	0.7
Return on securities	-	-	-	-	-	-	-	-	-	-	-	-	-210.6	62.2
Net financials	-	-	-	-	-	-	-	-	-	-	-	-	-1.2	-2.4
Profit/loss before tax	-	-	-	-	-	-	-	-	-	-	-	-	-107.7	192.3
	49.9%	55.1%	93.5%	96.4%	99.1%	99.0%	83.7%	85.0%	91.0%	102.6%	-	-	56.9%	60.9%
Gross margin	24.5%	30.4%	11.0%	20.9%	28.9%	35.2%	13.1%	18.6%	-54.9%	-27.8%	-	-	22.5%	29.0%
EBITDA margin EBIT margin	22.8%	28.7%	8.3%	18.3%	24.6%	31.8%	13.1%	18.0%	-56.4%	-30.4%	-	-	19.7%	26.3%

* Internal revenue is eliminated in other operating expenses. Other items relate to unallocated expenses.

Other information

FK Distribution's revenue is based on packing and distribution services, amounting to DKK 407.3m (2021: DKK 415.0m) and online sales of DKK 19.1m (2021: DKK 16.3m).

BoligPortal's revenue consists of subscription-based income from the platform's marketplace and income from various subscription-based SaaS solutions, amounting to DKK 46.4m (2021: DKK 42.1m). Ofir's revenue consists mainly of transaction-based job banner ads, amounting to DKK 22.1m (2021: DKK 16.7m). Bekey's revenue consists of sales of software access systems, including the sale of physical products closely associated with user access, amounting to DKK 13.3m (2021: DKK 11.5m).

Note 4 Adjustment for non-cash operating items

	Q2		Q2 YTD		full year
DKKm	2022	2021	2022	2021	2021
Share of profit/loss in associates	-2.0	-0.6	-4.0	-0.7	-4.2
Tax on profit/loss for the year	-14.2	29.3	-24.4	41.0	73.4
Amortisation and depreciation of
assets	7.0	6.8	14.0	14.0	27.7
Gain/loss on disposals of assets	0.0	0.0	0.0	-0.1	0.0
Share-based payment	0.1	0.4	0.4	0.8	1.2
Impairments Intangible and tangi
ble assets	0.0	0.0	0.0	0.0	20.1
Net financials	0.4	1.7	1.2	2.4	4.7
Value adjustments, securities	115.7	-61.3	210.6	-62.2	-103.2
Total adjustments for non-cash
items	107.0	-23.7	197.8	-4.8	19.7

Note 5 Change in working capital/other debt

	Q2		Q2 YTD
DKKm	2022	2021	2022	2021
COVID-19 extension of payment deadlines for VAT and employee income taxes	0.0	-10.0	0.0	-30.0
Frozen holiday pay	0.0	-18.2	0.0	-18.2
Changes in ordinary working capital	-2.3	-5.7	-15.5	-14.7
Changes in working capital	-2.3	-33.9	-15.5	-62.9

In 2021, the change in working capital was adversely affected by the payment of VAT and employee income tax due to the COVID-19- induced extended deadlines for paying VAT and employee income tax, and holiday pay frozen was paid to the Labour Market Holiday Fund in the second quarter of 2021. No particular changes were recorded for 2022.

Note 6 Acquired business and operations

In connection with BoligPortal acquiring 51% of the voting shares in Boligmanager ApS effective on 1 February 2022 and concluding a put/call option for the remaining 49%, North Media A/S has made a preliminary calculation of identifiable assets, liabilities and contingent liabilities at fair value. There was no significant activity in the company in January 2022.

Boligmanager has developed and launched a digital housing and property management system. The system enables landlords to manage, among other things, contracts, deposits, billings and payments, arrears, utility accounts, VAT, communication with tenants and bookkeeping at tenant/property level. This is a full-scale digital solution, and bookkeeping entries are integrated with e-economic and other online accounting software. The SaaS products are available as monthly subscriptions. The acquisition strengthens BoligPortal's product offering to property owners.

DKKm	Fair value at time of acqusition
Software	4.0
Cash	8.0
Deferred tax	-0.9
Acquried net assets	11.1
Goodwill	0.9
Acquisition cost	12.0
Of which contributed cash	-8.0
Net cash acquisition price	4.0

DKK 8m was contributed to equity as part of the transaction. The capital contribution will be used to grow and scale Boligmanager's operations. Accordingly, the cash acquisition price amounted to DKK 4.0m. The identifiable assets (other than the cash contribution) were allocated to software, which was the company's only asset.

Boligmanager is recognised in both the consolidated and the subsidiary financial statements at a 100% ownership interest. Pursuant to the shareholders' agreement including the related contingent residual consideration, Boligmanager's founders are entitled only to the contingent consideration relating to the remaining 49% of the shares. As part of the acquisition, an agreement has been made with Boligmanager's founders on their future employment until the end of 2026. The

related contingent consideration is not considered as part of the purchase price, but as remuneration for future employment, and the amount will be recognised as earned. The amount is expected to equal 1.5x Boligmanager's revenue in the 2026 financial year, depending on its revenue and EBIT margin performance. The entire purchase price for Boligmanager (including the cash purchase price of DKK 4.0m for 51% of the shares) will be recognised by the end of the 2026 financial year.

Overall, Boligmanager is expected to reduce BoligPortal's 2022 EBIT by approximately DKK 8m, about half of which amount will consist of amortisation of the identified software and the ongoing provision for the outstanding consideration for the remaining 49% of the shares, while the remaining amount will consist of the operating loss in Boligmanager. No significant revenue is expected for Boligmanager in 2022.

Note 7 Special risks and elements of uncertainty for the rest of 2022

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 will support an EBIT margin in-crease. Conversely, a decline in revenue would have a negative effect on the profit margin as it is only possible to reduce costs slightly in the short term. Moreover, operations are conducted in markets characterised by massive structural change, which adds to the uncertainty.

Note 8 Contingent liabilities and assets

Contingent liabilities

In a decision announced on 30 June 2020, the Danish Competition Council ruled 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 Council'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 2022, no material changes had occurred in respect of the Group's contingent liabilities and assets.

Note 9 Solar panels on FK Distribution's buildings and land areas

An agreement was concluded at the end of October 2021 for the installation of solar panels and a battery at the property in Taastrup. The solar panel plant was inaugurated on 31 May 2022, whereas the battery solution has been delayed by a couple of months due to component shortages. Once the solar panels and the battery solution have been installed, about 40% of power consumption at the Taastrup site will be generated in-house by solar panels.

The solar panels installed cover an area of 2,100 m2 on the roof of the building and 3,300 m2 on the ground, for a total of 5,400 m2 with an installed capacity of 1,100 kWp.

The investment amounts to approximately DKK 15m.

A similar solar panel plant being planned for the property in Tilst and the installation will begin at the end of August 2022.

To date, DKK 7m of the total DKK 30m investment has been capitalised, while the rest of the payment is subject to gradual installation and launch of the system.

Note 10 Subsequent events

The Board of Directors and the Executive Board are not aware of any significant events having occurred since 30 June 2022 which would have a material impact on the Group's financial position.

FK Distribution, Taastrup

North Media A/S

Gladsaxe Møllevej 28 DK – 2860 Søborg Telefon: +45 39 57 70 00 E-mail: investor@northmedia.dk www.northmedia.dk CVR-nr. 66 59 01 19

North Media A/S Interim Report Q2 2022 / 25