Vend Marketplaces ASA — Annual Report 2009

Apr 19, 2010

CHIBSTED

Annual report 2009

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CONTENT

Well equipped for the future > 1
President and CEO Rolv Erik Ryssdal

Key figures > 2
Our company / vision / strategy > 4
Our year 2009 > 6

Description of operations > 7
- Business areas > 8
- Media Norge > 10
- VG / Schibsted Sverige > 12
- Schibsted International Editorials > 14
- Free newspapers > 15
- Online newspapers > 16
- Other > 17
- Schibsted Classified Media > 18

Social responsibilities > 20
- Editorial freedom > 20
- The Tinius Trust > 21
- Gender equality and environment > 21

Shareholders information > 22
Schibsted Group Council Group employee representatives > 23
Corporate Governance > 24
The Nomination Committee's report > 27

Board of director's report and financial statements > 29
- Declaration regarding the determination of salary and other remuneration to managers > 40
- Articles of association > 42
- Financial statements > 43

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SCHIBSTED ANNUAL REPORT 2009

WELL EQUIPPED FOR THE FUTURE

By President and CEO Rolv Erik Ryssdal

2009 was a difficult year for many people. The media sector is always especially hard hit during economic slumps. Around half of Schibsted's revenues come from advertising. When these revenues fall by 20 per cent, as they did in the second quarter, this obviously affects the balance sheet. Our operations are such that we have a large share of fixed costs that cannot be removed immediately.

Luckily, we are in a much better situation than many of our competitors. After such a very special year, we are better equipped than most others. This is mainly for three reasons:

In the first place, we have implemented a very large and extensive profitability programme which is worth more than NOK 1 billion. We have also sold some operations that were not part of our core areas.

In the second place, we have carried out a very successful share issue which was well received and oversubscribed. Our shareholders demonstrated their faith in the company when we needed them to. That means we are in a good financial situation and are flexible.

In the third place, it is fortunately the case that the world has not completely collapsed. Although we have a presence in markets, like the Spanish one, that were very badly affected, the situation was thankfully much better here in the north.

We are facing the future with strong strategic legs to stand on.

The first leg consists of the big media houses, the largest of which is Media Norge. The other big media houses are VG and Schibsted Sverige, whose Aftonbladet and Svenska Dagbladet will soon move into a common office building. We also have exciting but slightly smaller media houses in other parts of Europe: 20 Minutes in Spain and France and Eesti Meedia in Estonia.

The second strategic leg consists of online classified ads, a sector in which we have a leading position in Europe. Schibsted was one of the first to see online opportunities. Today, we can say that our strong position in the online classified ads market is an important reason for us weathering the financial crisis reasonably well. We can still see growth opportunities for Schibsted in this area – in an international perspective.

The media houses will continue to be restructured. The establishment of Media Norge is a milestone for Schibsted. The entire structure is a collaboration, a community and a tool that will enable our large Norwegian regional newspapers to better solve their primary tasks in a good way and ensure editorial quality and breadth.

Schibsted Sverige has in many ways the same structure and also has the practical advantage that both its main companies are located in Stockholm and can share an office building. Naturally, that provides additional opportunities which it will be interesting to follow when the companies move into the same building at the end of 2010.

Our profitability programme has primarily been implemented in the media houses. The measures have been tough but have enabled the media houses to face the future full of expectation.

The online segment in particular will face future challenges. Of our editorially based websites, only Aftonbladet and VG have found really good business models. Several must further develop in order to find such models.

Schibsted's operations are characterised by the Group being a positive driving force behind current debates on social affairs and thus social developments. This is where our genes and entire DNA are located. This characterises our articles of association and the Tinius Trust, which is our largest shareholder. Our tradition for editorial freedom is a primary guideline.

Our media must be good and they must be profitable. If we are to fill this role in the future, we must think about how to further develop. In the past, we have been very good at this, but it is important to always remember to develop if we are to continue being at the forefront and maintain our strong positions.

Competence development is one of Schibsted's foundations as a knowledge-based group of companies and is necessary for realising our ambitions – from recruitment through the trainee programme to the development of a sales force and managers. The creation of a good internal network and dynamic working environment is one of the goals of all our development programmes.

Newspapers are one of Schibsted's core activities. We believe that our newspapers will continue to survive and be successful in the long term too.

Our now international online classified ad operations have been successful and are constantly being further developed.

Blocket is only one example of this – a little fairy tale that is in the process of becoming a big one. It originally started in the small village of Fjällking outside the town of Kristianstad in southern Sweden in 1996, as a local advertisement market for the purchase and sale of items in the Skåne region. Today, it is Sweden's biggest national online marketplace. The concept has been exported to 11 countries and has become the biggest sales portal in Spain, France and Malaysia. That indicates good opportunities for further growth for both the existing concepts and new services.

Schibsted has wonderful, skilled employees in many companies in many countries. I would like to thank them all for their efforts in excess of that which can reasonably be expected in the demanding year we have been through.

The exciting continuation has already started. The future will be demanding but Schibsted is well equipped to face it.

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SCHIBSTED ANNUAL REPORT 2009

Our reporting is based on the dimensions in the management structure: Norway, Sweden and International.

KEY FIGURES

OPERATING REVENUE PER BUSINESS AREA

DEVELOPMENT OPERATING REVENUE AND PROFIT (EBITA) PER BUSINESS AREA NORWAY
SWEEDEN
OPERATING REVENUE OPERATING PROFIT (EBITA)

SWEEDEN
INTERNATIONAL

NOK MILLION

OPERATING PROFIT (EBITA) PER CHANNEL
1: PRINTED NEWSPAPERS 2: ONLINE NEWSPAPERS
3: CLASSIFIED/DIRECTORIES 4: LIVE PICTURES
5: OTHER

DEVELOPMENT OPERATING REVENUE PER CHANNEL
NOK MILLION
PRINTED NEWSPAPERS CLASSIFIED/DIRECTORIES

NOK MILLION
ONLINE NEWSPAPERS LIVE PICTURES OTHER

DISTRIBUTION OF REVINUES THE SCHIBSTED GROUP
15000
15000
12000
9000
6000
3000
05 06 07 08 09
■ SUBSCRIPTION SINGLE, COPY SALES
■ ADVERTISING OTHER

SCHIBSTED GROUP OPERATING REVENUES AND PROFIT (EBITA)

OPERATING PROFIT (EBITA) THE SCHIBSTED GROUP
1500
1500
900
600
300
05 06 07 08 09

12 745

GROUP
OPERATING REVENUE 2009
NOK MILLION

832

GROUP
OPERATING PROFIT (EBITA) 2009
NOK MILLION

59%

THE ONLINE ACTIVITIES
PART OF OPERATING PROFITS (EBITA)

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SCHIBSTED ANNUAL REPORT 2009

KEY FIGURES - SCHIBSTED GROUP

(NOK million)	2009	2008	2007	2006*
Operating revenues	12 745	12 851	12 745	11 648
Operating expenses	(11 184)	(11 420)	(11 177)	(10 375)
Income from associated companies	(67)	(73)	149	179
Operating profit (EBITDA)	1 494	1 358	1 717	1 452
Depreciation and amortisation	(662)	(592)	(560)	(439)
Operating profit before impairment loss and other revenues and expenses (EBITA)	832	766	1 157	1 013
Operating profit (EBIT)	435	(310)	1 186	2 495
Profit before taxes	279	(740)	970	2 413
Operating margin:
EBITDA (%)	11.7	10.6	13.5	12.5
EBITA (%)	6.5	6.0	9.1	8.7
EBIT (%)	3.4	(2.4)	9.3	21.4
Profit ratio (%)	3.1	(7.1)	5.0	18.4
EPS diluted (NOK)	34.7	22.8	31.0	31.2
Net interest bearing debt / EBITDA	1.7	4.0	2.4	2.3
EPS (NOK)	4.7	(14.0)	9.5	32.5
EPS diluted (NOK)	4.7	(13.9)	9.5	32.5
Cash flow per share (NOK)	19.3	26.1	19.4	39.5
NORWAY
Operating revenues	6 499	6 034	6 078	5 351
Operating profit (loss) (EBITA)	660	748	973	533
Operating profit (loss) (EBIT)	501	1 513	1 170	1 532
Operating margin (EBITA) (%)	10.2	12.4	16.0	10.0
SWEDEN
Operating revenues	3 692	3 866	3 587	4 626
Operating profit (loss) (EBITA)	143	58	27	430
Operating profit (loss) (EBIT)	(6)	(250)	(59)	971
Operating margin (EBITA) (%)	3.9	1.5	0.8	9.3
INTERNATIONAL
Operating revenues	2 705	3 053	3 172	1 735
Operating profit (loss) (EBITA)	240	213	332	50
Operating profit (loss) (EBIT)	185	(1 320)	250	(8)
Operating margin (EBITA) (%)	8.9	7.0	10.5	2.9

DEFINITIONS

Operating margin:

EBITDA margin

Operating profit (loss) before depreciation and amortisation, impairment loss and other revenues and expenses / Operating revenues

EBITA margin

Operating profit (loss) before impairment loss and other revenues and expenses / Operating revenues

EBIT margin

Operating profit (loss) / Operating revenues

Profit ratio

Net income (loss) attributable to majority interests / Operating revenues

Equity ratio

Equity / Total assets

EPS

Net income (loss) attributable to majority interests / Average number of shares

Cash flow per share

(Profit (loss) before taxes + depreciation and amortisation +/- net changes in pensions +/- income from associated companies - taxes payable) / Average number of shares

Rate of exchange	2009	2008
SEK/NOK	82.23	85.48
EUR/NOK	8.729	8.223
EEK / NOK	55.79	52.55

*The figures for 2006 are not converted according to the new business area structure.

CIRCULATION	2009	2008	2007	2006
Aftenposten morning edition, weekdays	243 188	247 557	250 179	248 503
Aftenposten Aften, afternoon edition, weekdays	111 566	124 807	131 089	137 141
Aftenposten, Sunday	212 834	216 465	219 152	221 067
Verdens Gang, weekdays	262 374	284 414	309 610	315 549
Verdens Gang, Sunday	221 349	240 264	262 786	268 355
Aftonbladet, weekdays	348 800	368 200	387 933	416 500
Aftonbladet, Sunday	410 800	425 600	455 508	475 300
Svenska Dagbladet, weekdays	195 400	193 300	194 900	194 900
Svenska Dagbladet, Sunday	204 900	203 800	204 500	203 400
ADVERTISING VOLUMES (column meters)
Aftenposten	65 356	84 509	89 917	79 589
Verdens Gang	11 146	11 721	11 098	9 278
Aftonbladet	18 158	16 749	15 129	15 296
Svenska Dagbladet	23 788	26 020	26 384	25 350

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SCHIBSTED ANNUAL REPORT 2009

OUR COMPANY

Schibsted is a Scandinavian media group that aims to be the most attractive in Europe. We currently have 7,500 employees in 26 countries. Our business is based on three dimensions in the management structure: Norway, Sweden and International. We are currently focusing on two strategic axes: the further development of our media houses and the establishment of online classified ads services.

In 2008, our international classified ads operations were organised in a separate company, Schibsted Classified Media (SCM). This company now has operations in 18 countries, most of which are copies of the Swedish success Blocket. It is a good example of how our product strategy is being sharpened and strengthened.

Two companies that were established in 2009 must be said to be milestones for Schibsted.

In Norway, the collaboration between the following regional newspapers - Aftenposten, Bergens Tidende, Stavanger Aftenblad and Fædrelandsvennen – was finally formalised by the creation of Media Norge. The aim is to achieve economies of scale through editorial and commercial cooperation. This cooperation will enable the newspaper companies to carry out their primary tasks well and ensure high quality editorial work.

Schibsted Sverige has been established in Sweden and includes all the companies in the Aftonbladet and SvD groups. Its structure is very similar to the one in Norway and the goals are the same. In Sweden, the companies also have the advantage of both being located in Stockholm and can coordinate their operations in one building. This will take place around the end of 2010.

Strong media houses form the core of our operations, and our growth strategy is based on close interaction between various media channels. We aim to develop our operations so that we have a robust product irrespective of the channels chosen by users. Our various products are linked by our strong tradition of editorial freedom and our ability to adapt to a media market that is developing rapidly. Companies in 26 countries:

Norway, Sweden, Denmark, Finland, Estonia, Latvia, Lithuania, Russia, the Netherlands, Belgium, France, Portugal, Spain, Italy, Greece, Switzerland, Austria, Hungary, Mexico, Colombia, Brazil, Argentina, Singapore, Malaysia, the Philippines and Indonesia. (Refer to the overview on page 7)

THE GROUP MANAGEMENT

• Until 1 April 2010

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SCHIBSTED ANNUAL REPORT 2009

OUR VISION

"Schibsted will be the most attractive media group in Europe, through people who dare, who challenge and who create."

OUR STRATEGY

Schibsted's strategy is based on two strong strategic legs:

A leading position when it comes to printed and online
EDITORIAL ACTIVITIES in Norway and Sweden and internationally.

A leading position in Europe in rapidly growing
ONLINE MARKETPLACES.

PRODUCT STRATEGY

During the past few years, Schibsted has proven that individual products and concepts developed in the Group's media houses can be established in new markets and stand on their own feet. This element in Schibsted's growth strategy has resulted in the Group achieving strong positions in important markets.

Many new companies were established in 2009. The online classified ads market has great growth opportunities for Schibsted. Sound products such as FINN, Blocket and InfoJobs form the starting point for exports to other countries. Schibsted's goal is to be the leading multinational player in a product niche, such as real estate, recruitment or car advertising. Growth over the next few years will primarily be based on further development, the establishment of new products and the mapping of opportunities in new markets.

The structured cooperation which is continuously taking place between the companies is a good example of how product development and innovation are carried out across national boundaries.

MEDIA HOUSE STRATEGY

Schibsted's media house strategy is a cornerstone of the Group's success in Scandinavia. At its core lies our ambition to further develop dominant positions and sound, popular brands in the individual national markets. The media house strategy is to develop products under the same roof and same brand umbrella. Our goal is to create loyalty to the brand, irrespective of channel. Within the media houses, attempts are made to optimise each channel's qualities and ensure that they complement each other as regards contents and areas of usage.

In order to maintain the media houses' strengths, Schibsted focuses on ensuring that its online products are innovative and user-adapted while also continuously renewing the traditional newspapers' business models. The dissemination of news, useful articles and entertainment

in several channels is the main idea on which the creation of the media houses is based. This strategy is key to growth in both Scandinavia and other selected geographical areas, such as Estonia, France and Spain.

The main elements in the media house strategy are:

• From product to customer focus
• More attention paid to market insight
• Structured cooperation regarding innovation, product development and internal efficiency

Schibsted's media houses are: Aftonbladet and Svenska Dagbladet in Sweden, the newspapers belonging to Media Norge and VG in Norway, Eesti Meedia in Estonia, 20 Minutos in Spain and 20 Minutes in France. All have leading positions in their markets and are based on newspaper operations.

COMPETENCE DEVELOPMENT

Management development, continuous improvement, sales and market insight are key elements in Schibsted's competence development work and are crucial to us achieving our ambition to be one of the most attractive media companies in Europe.

• Our media house strategy – we must change in order to maintain.
• Our product strategy – a foundation for international export.

Our competence strategy is crucial to the realisation of our ambitions and to making Schibsted an attractive workplace where we utilise the advantages of being an international group that has experience of various markets characterised by different media habits.

SCHIBSTED STRATEGIC LEGS

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SCHIBSTED ANNUAL REPORT 2009

OUR YEAR 2009

1st quarter

• Schibsted affected by the financial crisis. Advertising revenues fall by 18 per cent.
• A NOK 1 billion profitability programme is agreed to and implemented.
• Schibsted Sverige is established as a separate company with its own group management.

2nd quarter

• Metronome Film & Television is sold for SEK 719 million.
• Schibsted ASA's board of director's appoints Rolv Erik Ryssdal as the new CEO. He succeeds Kjell Aamot who has held this position for 20 years.
• Media Norge is established as a company. The work of realising coordination effects between the four media houses is intensified.
• Svenska Dagbladet is awarded as the best sales organisation during Stockholm Media Week.
• Aftenposten.no is chosen as the Website of the Year in Norway.

3rd quarter

• Schibsted carries out a rights issue and raises NOK 1.3 billion in new equity.
• New group management team appointed.
• Schibsted sells Retriever for SEK 115 million.
• Schibsted increases its stake in 20 Minutes in Spain from 80 to 100 per cent.

4th quarter

• Schibsted invests EUR 33 million in InfoJobs.net, a Spanish recruitment ads portal, and increases its stake from 75.2 to 98.5 per cent. This transaction also leads to a 73 per cent stake in InfoJobs in Italy, compared to 56 per cent before.
• Schibsted sells Basefarm and Teleadress for NOK 155 million and SEK 60 million respectively.
• Tori, a Blocket copy, is launched in Finland. This is the 10th country outside Sweden in which Blocket is rolled out. Tori is the fourth new launch of the Blocket concept in 2009.
• Schibsted increases its stake in FINN.no from 71 to 80 per cent.
• Aftenposten.no had 1.3 million unique visitors and made an operating profit for the first time.
• E24 became Europe's largest business website, with more than 5.3 million unique visitors per month. It has operations in Sweden, Norway, France and Estonia.

1st quarter 2010

• Schibsted's Swedish websites opened 2010 with new records: Aftonbladet.se had more than five million unique visitors in one week and more than two million visitors in one day. E24.se, the business website, had one million visitors in one week.
• Schibsted Classified Media launched new classified ads services: tutti.ch in Switzerland and jofogás.hu in Hungary.
• Blocket.se was chosen as Sweden's seventh-best brand by the Superbrands organisation. Hitta.se was awarded the eighth-best brand.

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SCHUBSTED ANNUAL REPORT 2009

Description of operations

OUR MEDIA WORLD

NORWAY

Printed newspapers, online newspapers, classifieds directories, live pictures, other. 3 450 employees.

SWEDEN

Printed newspapers, online newspapers, classifieds/directories, live pictures, other. 1 337 employees.

DENMARK

Live pictures. 25 employees.

FINLAND

Classifieds, other. 11 employees.

ESTONIA

Printed newspapers, online newspapers, classifieds, live pictures, other. 963 employees.

LATVIA

Other. 2 employees

LITHUANIA

Printed newspapers, online newspapers, classifieds and other. 241 employees.

RUSSIA

Printed newspapers, online newspapers. 74 employees.

NETHERLAND

Classifieds. 1 employee.

BELGIUM

Classifieds. 14 employees.

FRANCE

Printed newspapers, online newspapers, classifieds. 188 employees.

PORTUGAL

Classifieds. 3 employees.

SPAIN

Printed newspapers, online newspapers, classifieds and other. 909 employees.

ITALY

Classifieds. 24 employees.

GREECE

Classifieds. 4 employees.

SWITZERLAND

Classifieds. 1 employee.

AUSTRIA

Classifieds. 16 employees.

HUNGARY

Classifieds. 1 employee.

MEXICO

Classifieds. 44 employees.

COLOMBIA

Classifieds. 76 employees.

BRAZIL

Classifieds. 18 employees.

ARGENTINA

Classifieds. 94 employees.

SINGAPORE

Classifieds. 2 employees.

MALAYSIA

Classifieds. 6 employees.

PHILIPPINES

Classifieds. 4 employees.

INDONESIA

Classifieds.

Employees
TOTAL 2009
7500

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SCHIBSTED ANNUAL REPORT 2009

DESCRIPTION OF OPERATIONS

Norway

Schibsted launched a new group structure based on a geographic model in 2006. Norway is the largest of the business areas. VG and Media Norge's media houses and Schibsted Forlag (publishing house) are the most important Norwegian companies. Media Norge was consolidated as a subsidiary of Schibsted as from the 2nd half of 2009.

The operations in Norway are also affected by the financial crisis, although the effects are less here than in many other places. The general media trend, with a transition from print to online products, is continuing.

Despite its falling circulation, VG had higher circulation revenues than in 2008 due to new products and higher prices. Lower advertising revenues mean that the total revenues, margin and profits were about the same as the year before.

MEDIA NORGE

Media Norge ASA was established on 25 June 2009 as a leading Norwegian media group. This company comprises the Aftenposten, Bergens Tidende, Fædrelandsvennen and Stavanger Aftenblad media houses as wholly owned subsidiaries, as well as FINN.no.

Media Norge is a leader in the Norwegian market when it comes to printed media, online services, printing and distribution. Two million Norwegians over the age of 12 years use one or more of the group's media each day.

Media Norge Group had total revenue of NOK 4,945 million in 2009 and made a profit (EBITDA) of NOK 322 million.

Media Norge consists of four media houses that are strongly anchored in the regions. The proximity to the public and markets is important for the position that each individual media house has developed. Common measures, a shared support system and synergies in Media Norge are intended to help free-up resources so that the media houses' impact and individuality can be further strengthened. This is expected to have a further positive effect on both the costs and revenues.

The largest shareholder is Schibsted ASA, which has a shareholding of 80.4 per cent. The head office is in Bergen.

Sweden

Schibsted's Swedish operations were gathered into one group, Schibsted Sverige AB, in 2009. The group consists of three units: Aftonbladet, Svenska Dagbladet and Schibsted Tillväxtmedier. The CEO of this group is Raoul Grünthal. Blocket and Byt Bil are, as before, a part of Schibsted Classified Media.

Schibsted's stake in Aftonbladet was changed when the Swedish Confederation of Trade Unions reduced its shareholding from 50.01 per cent of the preference shares to nine per cent of the ordinary shares. Schibsted Sverige thus now controls 91 per cent of Aftonbladet's shares.

The Teleadress company was sold in 2009. At the same time, shares were bought in Lendo AB, an Internet company, and Hard Hat AB, a company that produces web-TV.

Efforts are being made to co-locate Schibsted's Swedish companies. In October, a lease was signed with Jernhusen, a real estate company, for just over 10,000 sq m of office space in a new building, Kungsbrohuset, in Stockholm City. The companies will move in at the end of 2010.

Aftonbladet and Svenska Dagbladet implemented extensive savings programmes during the year, and among other things these involved considerable staff cuts. The restructuring costs equal SEK 166 million. At the same time, the newspapers reorganised their day-to-day operations by, among other things, integrating the editorial work carried out by the print and online newspapers.

Aftonbladet's circulation continued to decline (-5%) - to 348,800 per weekday.

Svenska Dagbladet's circulation came to 195,400 (+1%) on weekdays.

Hitta's sales grew by more than 15 per cent. For the first time ever, the company had more than three million unique Internet visitors in one week, a growth in traffic of 15 per cent. During the year, Street View was introduced, showing pictures from 29 towns. Hitta.se was chosen as Sweden's eighth-strongest brand by Superbrands, a global organisation.

E24 became Europe's biggest financial and business website in 2009, with five million unique visitors each month. The Swedish record of 951,862 unique visitors was achieved

International

All of Schibsted's operations outside Norway and Sweden, whether editorial or advertisement-based, have been organised in Schibsted International since 2006. In the spring of 2008, the Group's classified ads operations were, with the exception of FINN.no and soov.ee, gathered in Schibsted Classified Media AS (SCM).

This marked a strategic escalation and structuring of the Group's international portfolio and made Schibsted better equipped to further develop existing services and establish new ones. 2009 was an important year for launches in new markets, a trend which is continuing in 2010. Innovation and structured cooperation are important key words for further growth.

Schibsted's international editorial operations outside Scandinavia consist of the following free newspapers: 20 Minutes in France, 20 Minutes in Spain and Moi Rayon in Russia (with associated news websites), as well as a number of companies in Estonia and Lithuania. The latter are organised in a holding company, Eesti Meedia Group, whose headquarters are in Tallinn.

The advertising market declined sharply in all countries in 2009 – least in France and most in the Baltic region and Russia. As a result, all the companies had to implement extensive downsizing and cost cuts. However, at the end of the year there was hope that the market had bottomed out and 20 Minutes in France achieved its best quarterly result ever. The Eesti Meedia Group made a profit for the year, which is extremely impressive given the dramatic downturn in the Estonian and Lithuanian economies in 2009.

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SCHIBSTED ANNUAL REPORT 2009

Key figures

OPERATING PROFIT NORWAY

NOE MILLION	2009	2008
Subscription revenues	936	729
Single copy sales revenues	1 535	1 462
Advertising revenues	2 910	2 855
Other revenues	1 116	988
Operating revenues	6 499	6 034
Operating expenses	(5 759)	(5 299)
Income from associated companies	(80)	13
Operating profit (EBITA)	660	748
Impairment loss	(83)	(12)
Other revenues and expenses	(76)	777
Operating profit (EBIT)	501	1 513
Operating margin (EBITA) (%)	10.2	12.4

OPERATING REVENUES AND PROFIT (EBITA)

The figures for 2005/2006 are not converted according to the new business area structure.

in the autumn of 2009. Aktie-SM, Sweden's biggest stock exchange competition, was held in the spring of 2009 and attracted a record number of participants. A new website, E24 Entreprenör (Contractors) quickly became Sweden's largest website for small companies and contractors. A new exciting collaboration with the Financial Times means that E24 is launching a new international business news section.

OPERATING PROFIT SWEDEN

NOE MILLION	2009	2008
Subscription revenues	377	375
Single copy sales revenues	1 334	1 402
Advertising revenues	1 303	1 447
Other revenues	678	642
Operating revenues	3 692	3 866
Operating expenses	(3 563)	(3 736)
Income from associated companies	14	(72)
Operating profit (EBITA)	143	58
Impairment loss	(50)	(228)
Other revenues and expenses	(99)	(80)
Operating profit (EBIT)	(6)	(250)
Operating margin (EBITA) (%)	3.9	1.5

OPERATING REVENUES AND PROFIT (EBITA)

The figures for 2005/2006 are not converted according to the new business area structure.

All the main operations reinforced their leading market positions in 2009: the 20 Minutes newspapers are France's and Spain's most-read general newspapers, while the Postimees newspaper, Kanal 2 TV channel, Ajakirjade Kirjastus magazine publishing house and Kroonpress printing works are all number one in their markets in Estonia.

Schibsted International now has operations in Estonia, Lithuania, Russia, France, Spain, Portugal, Italy, Belgium, the Netherlands, Switzerland, Austria, Hungary, Greece, Argentina, Mexico, Brazil, Colombia, Malaysia, the Philippines and Indonesia.

OPERATING PROFIT INTERNATIONAL

NOE MILLION	2009	2008
Subscription revenues	111	103
Single copy sales revenues	102	208
Advertising revenues	2 128	2 450
Other revenues	364	292
Operating revenues	2 705	3 053
Operating expenses	(2 464)	(2 826)
Income from associated companies	111	114
Operating profit (EBITA)	240	213
Impairment loss	(28)	(1 318)
Other revenues and expenses	(27)	(215)
Operating profit (EBIT)	185	(1 320)
Operating margin (EBITA) (%)	8.9	7.0

OPERATING REVENUES AND PROFIT (EBITA)

The figures for 2005/2006 are not converted according to the new business area structure.

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SCHIBRTED ANNUAL REPORT 2009

MEDIA NORGE

Aftertaste (100%)

Aftertaste Distribusjon AS (100%), Din Mat AS (43.3%), Distribution Innovation AS (60%), E24 Næringsliv AS (60%), Edda Distribusjon AS (13%), FINN.no (23.4%), Mediapost AS (33.3%), Mylder AS (35%), Norsk Telegrambyrå (11.1%), Romerike Mediadistribusjon AS (34%), 100% Fotball DA (20%), (Media Norge's ownership in per cent).

Afterposten is one of Norway's largest media houses and holds strong positions in both the print and online sectors. This media house's print and/or online newspapers have a total of around 1.1 million readers each day. The morning and afternoon print editions are the second- and third-largest newspapers in Norway respectively. 2009 was characterised by ambitious, targeted efforts to improve profitability. The sharp fall in advertising revenues in the autumn of 2008 continued in 2009 and was met with, among other things, considerable cost cuts. In addition, a significant turnaround operation was implemented for the online operations, which produced a profit for the first time in 2009. The publishing operations also made a profit.

Afterposten's morning edition circulation fell by 4,369 to 243,188. Compared with the other large newspapers in Norway, this is not a severe reduction. The circulation of the evening edition, which has since May only been published three times a week instead of five, fell by 13,241 to 111,566. The evening edition maintained its position as Norway's third-largest newspaper.

Parallel to the profitability programme, there has been a focus on product development in both the print and online newspapers. In May, the morning edition expanded its coverage of foreign affairs by starting to publish a separate World section every day. The reaction from readers has been entirely positive. Separate income-creating classified ads services for real estate and recruitment have been established by the online newspaper. The use of Afterposten's mobile phone services more than doubled during the year. Afterposten.no was chosen as "Website of the Year" by the Norwegian Media Businesses' Association.

THE PAST YEAR

• The online operations made a profit.
• Reduction in the shareholding in FINN.no and sale of stake in Retriever AS.
• The evening edition is published three times a week instead of five.
• Significant cost cuts.
• Hilde Haugsgjerd new editor-in-chief.

AMBITIONS

• To develop products that the market wants.
• To strengthen the organisation.
• To reduce costs.
• To improve processes.

OPERATING PROFIT

BOE MILLION	2009	2008
Circulation revenues 1)	798	755
Advertising revenues	1 058	1 373
Other revenues	270	293
Operating revenues	2 126	2 421
Operating expenses	(2 063)	(2 356)
Income from associated companies	-	(-2)
Operating profit (EBITA)	63	63
Operating margin (EBITA) (%)	3.0	2.6
Number of employees	769	953

1) Circulation revenues consist of subscription and single copy sales revenues

Circulation volume	2009	2008
Afterposten, morning, weekdays	243 188	247 557
Afterposten, Aften, weekdays	111 566	124 807
Afterposten, Sundays	212 834	216 465

OPERATING REVENUES AND PROFIT (EBITA)

Bergens Ældende (100%)

Avisprodukter AS (100%), Bergensopplevelser AS (100%), BT Respons AS (100%), BTV AS (100%), Din Mat AS (16.4%), FINN.no (11.3%), Forlaget Strilen (100%), Lokalavisene AS (100%), Mediatrykk AS (100%), Vestnytt AS (10%), Åsane-posten (100%), 100% Fotball DA (20%) (Media Norge's ownership in per cent).

Bergens Tidende is the leading media house in the western region of Norway and both its print and online editions hold strong positions. It has 330,000 readers of its print and/or online editions each day. The print newspaper is Norway's largest newspaper outside Oslo and its daily circulation in 2009 was 83,086 (-2,740). This media house also publishes five local newspapers and one free newspaper. In addition, it has extensive printing and distribution operations. In 2009, the media house was extensively reorganised with a major focus on cost-cutting measures. At the same time, both print and online products continued to be developed.

THE PAST YEAR

• Voted "Newspaper of the Year" for the second time in three years.
• The editorial "Fact Check" influenced the election campaign.
• BTV, a local TV station, was closed down.
• 35,000 – a new attendance record at the "Lysfesten" (Light Party) event.

AMBITIONS

• To increase readership and market shares.
• To grow the online and mobile phone operations and achieve profitable digital operations.
• To continue with the profitability programme.

OPERATING PROFIT

BOE MILLION	2009	2008
Circulation revenues 1)	253	243
Advertising revenues	510	613
Other revenues	231	217
Operating revenues	994	1 073
Operating expenses	(964)	(1 004)
Income from associated companies	-	-
Operating profit (EBITA)	30	69
Operating margin (EBITA) (%)	3.0	6.4
Number of employees	599	692

1) Circulation revenues consist of subscription and single copy sales revenues

Circulation volume	2009	2008
Bergens Tidende, weekdays	83 086	85 826
Bergens Tidende, Sundays	80 235	82 634

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SCHIBSTED ANNUAL REPORT 2009

Stavanger Aftenblad (100%)

Aftenbladet Distribusjon AS (100%), Aftenbladet Eiendom AS (100%), Aftenbladet Trykk AS (100%), Din Mat AS (15.6%), FINN.no (11.3%) Woldcam AS (100%), 100% Fotball DA (20%), (Media Norge's ownership in per cent).

Stavanger Aftenblad is the south-western region of Norway's leading media house and both its print and online editions hold strong positions. It has 230,000 readers of its print and/or online editions each day. This media house has extensive printing and distribution operations.

This media house has undergone a radical and tough reorganisation that provides a solid foundation for the future. It has an editorial focus on increasing reader involvement, finding new subjects to report on and sources, understanding and meeting the users' needs and on providing the public with articles they are interested in. The digital area was consolidated in 2009 and there will be a stronger focus on this in 2010. The print edition's daily circulation in 2009 was 65,298 (-1,046).

THE PAST YEAR

• 25% fewer man-years.
• The closure of a local TV station.
• A focus on local and investigative journalism.

AMBITIONS

• To strongly improve the results.
• To improve the quality and reader-friendliness.
• To establish new online useful and paid services.

OPERATING PROFIT

BOE MILLION	2009	2008
Circulation revenues 1)	157	140
Advertising revenues	365	482
Other revenues	93	85
Operating revenues	615	707
Operating expenses	(634)	(695)
Income from associated companies
Operating profit (EBITA)	(19)	12
Operating margin (EBITA) (%)	(3.1)	1.7
Number of employees	426	454

1) Circulation revenues consist of subscription and single copy sales revenues

Circulation volume	2009	2008
Stavanger Aftenblad, weekdays	65 298	66 344

Fædrelandsøvennen (100%)

AS Farsunds Aktiebogtrykkeri (87%), Fædrelandsvennen Distribusjon AS (100%), Kristiansand Avis (49%), Lindesnes AS (100%), Media AS (100%), Pragma AS (34%), Radio Lindesnes AS (68%), Søgne og Songdalen Budstikke AS (57.6%), Sør Distribusjon AS (96%), Sørlandsamkjøringen AS (67%), TV Sør (100%), 100% Fotball DA (15%) (Media Norge's ownership in per cent).

Fædrelandsvennen is the leading media house in the southern region of Norway. Its main activities are the publication of the Fædrelandsvennen newspaper and fvn.no, an online newspaper that has a total of around 150,000 unique visitors each day. This media house owns several local newspapers and has its own printing works and distribution operations.

2009 was characterised by a drop in revenues and profitability. As a result, Fædrelandsvennen implemented an extensive reorganisation project that has reduced its cost base considerably. This will enable Fædrelandsvennen to meet new challenges in 2010. The print edition's daily circulation in 2009 was 39,454 (-1,275).

THE PAST YEAR

• Bought Farsunds Avis and Kristiansand Avis.
• The "Ny Tid" (A New Age) efficiency improvement project resulted in significant reductions in the cost base.
• Nominated as Schibsted's best sales organisation.
• A TV station was closed down.
• Increased focus on live online pictures.

AMBITIONS

• To prepare a new strategy plan to ensure growth.
• To further develop the print newspaper.
• To further develop the online operations.

OPERATING PROFIT

BOE MILLION	2009	2008
Circulation revenues 1)	111	99
Advertising revenues	257	278
Other revenues	77	89
Operating revenues	445	466
Operating expenses	(436)	(437)
Income from associated companies	-	2
Operating profit (EBITA)	9	31
Operating margin (EBITA) (%)	2.0	6.7
Number of employees	319	366

1) Circulation revenues consist of subscription and single copy sales revenues

Circulation volume	2009	2008
Fædrelandsvennen, weekdays	39 454	40 729

Finn Bil AS (100%), Finn Eiendom AS (87.4%), Finn Oppdrag AS (Former Schibsted Søk). (100%), Finn Jobb AS (100%), Finn Reise AS (100%), Finn Torget AS (100%), Sentinel Software AS (33%), SFI Holding AS (30%), Tesked AB (40%). (Media Norge's ownership in per cent. In addition Schibsted owns 39.9% directly).

FINN is Norway's clearly leading classified ads portal, with Cars, Boats, Real Estate, Recruitment, Miscellaneous Items and Travel as its main markets. FINN.no AS is the parent company. In 2009, FINN maintained its almost 100 per cent share of the car and real estate advertising markets and had around 80 per cent of the recruitment advertising market. Its volume of miscellaneous items ads grew considerably while its travel ads section experienced a very strong autumn and captured significant market shares. FINN is Norway's fifth most visited website but the distance to third place has never been shorter than it was in 2009.

THE PAST YEAR

• Classified ad number 10,000,000 was published.
• Chosen as Norway's second-best workplace.
• Schibsted Søk (Search) and Sesam media were downscaled.
• More than two million unique visitors in one week.
• Christian Printzell Halvorsen appointed new CEO.

AMBITIONS

• To launch FINN assignment, the next-generation bidding marketplace for workmen's services.
• To develop B2C e-trade on FINN's Miscellaneous Items ads site.
• To improve the way applicants are dealt with by FINN's Recruitment ads site.
• To improve the efficiency of sales and product development operations.

OPERATING PROFIT

BOE MILLION	2009	2008
Operating revenues	764	723
Operating expenses	(487)	(457)
Operating profit (EBITA)	277	288
Operating margin (EBITA) (%)	36.3	38.8
Number of employees	283	366

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SCHIBSTED ANNUAL REPORT 2009

VG

(100%)

VG Multimedia AS...(100%)
Dine Penger AS...(100%)
Avisretur AS...(50.1%)
Pengenedine AS...(100%)
Schibsted Trykk AS...(40%)
NTB AS...(10.7%)
Nettby AS...(70%)

The VG media house publishes Norway's largest newspaper, VG, Norway's largest website, www.vg.no, and Norway's largest personal finance magazine, Dine Penger. VG is the majority shareholder in Nettby.no, a web community which had more than 810,000 citizens at the year-end. Together with Aftenposten, VG also owns E24, Norway's most visited business and finance news website. Its subsidiary Pengenedine AS launched a service called Mittanbud.no in 2009.

VG aims to be Norway's foremost supplier of news, entertainment and useful articles throughout the day. Through various channels (print/online/mobile phone), it reaches more than 53 per cent of Norway's population over the age of 12 years every day. More than 60 per cent of the 20-39 age group come into contact with VG every day. This media house can develop and offer to advertisers exciting and attractive solutions which combine printed, online and mobile products.

With an average weekday circulation of 262,374 (-22,040) and 1.1 million readers each day, VG won market shares in a declining single-copy sales market. The weekday circulation declined by just under eight per cent. VG has maintained its circulation revenues in a demanding newspaper market by establishing new products and increasing its cover price. Compared to the record year of 2008, advertising revenues for the VG Group fell by 12.6 per cent in 2009.

VG Nett (online) is Norway's biggest website. VG Multimedia experienced considerable economic growth during a challenging year. VGTV has developed very strongly and the introduction of football matches online has been successful. VG Mobil strengthened its number one position during the year and developed four popular iPhone applications.

THE PAST YEAR

• Profitability measures and downsizing ensured good results.
• VG Multimedia has retained its sound number one position as regards traffic volume and increased its market share.
• Successful launch and utilisation of online football rights.
• Launch of VG Fredag (Friday), a new consumer-oriented newspaper supplement, in January 2009.
• The price of VG was increased from NOK 11 to NOK 12 from Mondays to Thursdays as from 1 July 2009.

AMBITIONS

• VG is to further develop and strengthen its online, print and mobile phone publishing strategy.
• VG Lørdag (Saturday) and VG Helg (Weekend) are to be strengthened.
• VG is to reinforce its no. 1 position as regards mobile phone online services.
• VG is to achieve digital growth.
• VG is to adapt its organisation and cost level.

OPERATING PROFIT

BOX MILLION	2009	2008
Circulation revenues *	1 269	1 216
Advertising revenues	611	699
Other revenues	61	70
Operating revenues	1 961	1 985
Operating expenses	(1 638)	(1 659)
Operating profit (EBITA)	323	326
Operating margin (EBITA) (%)	16.5	16.4
Number of employees	491	519

• Circulation revenues consist of subscription and single copy sales revenues

Circulation volume	2009	2008
Verdens Gang, weekdays	262 374	284 414
Verdens Gang, Sundays	221 349	240 264

OPERATING REVENUES AND PROFIT (EBITA)

BOX MILLION
8800
8000
8800
1800
1000
800

OPERATING REVENUES PROFIT (EBITA)

SCHIBSTED SWEDEN

AFTONBLADER (91.0%)

Aftonbladet Kolportage AB...(100%)
Tidningsretur Nyköping AB...(50%)

Aftonbladet is Sweden's biggest newspaper and news website. Its various channels are read by 2.5 million people each day. 2009 was a turbulent year for this media house, with cutbacks and falling circulation for the print newspaper.

However, its online operations reached new record levels. Right at the beginning of 2010, a new wonderful limit was passed: five million unique visitors each week for aftonbladet.se – a figure that just keeps on growing. The readers' involvement – comments, pictures and other interactive operations – is also steadily increasing, and the same is true for the mobile phone services.

In connection with the cutbacks, the online and print newspapers were reorganised so they had one editorial staff. The new organisation was immediately put to the test in connection with a spectacular helicopter robbery in Stockholm.

Despite the difficult times, the newspaper is looking to the future and started extensive branding work during the year. In a major survey, readers were asked what they wanted from Aftonbladet. The results were presented at a conference in September.

In order to develop the newspaper's journalism and products, the employees have attended workshops to learn about new target groups. This work paved the way for several aggressive efforts at the start of 2010 to strengthen the newspaper as a source of news and improve its credibility among readers.

Despite the economic slump, advertising revenues did well. The online curves were pointing upwards at the end of the year. Surveys of the last four months of the year show that Aftonbladet (both the main newspaper and supplements) is extending its lead over its competitor, Expressen.

Aftonbladet is ready for the most news intensive year in a long time, with the Winter Olympics, the wedding of Sweden's Crown Princess and the Football World Championships. In addition, it is election year.

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SCHIBSTED ANNUAL REPORT 2009

THE PAST YEAR

• Downsizing with severance payments and contractually agreed early retirement pensions.
• The merger of the print and online editorial staffs.
• Strong results despite a difficult advertising market.
• A new strategic agenda with clear goals.
• The volume of online traffic reached record levels.

AMBITIONS

• Several innovations launched at the beginning of 2010.
• These are intended to provide higher advertising revenues.
• To be at the forefront of technical developments for online and mobile phone services.
• The gathering of operations in a new Schibsted media house provides new opportunities.

OPERATING PROFIT

SIDE MILLION	2009	2008
Circulation revenues 1)	1 599	1 617
Advertising revenues	701	776
Other revenues	113	159
Operating revenues	2 409	2 552
Operating expenses	(2 212)	(2 225)
Income from associated companies	7	5
Operating profit (EBITA)	204	332
Operating margin (EBITA) (%)	8.5	13.0
Number of employees	566	615

1) Circulation revenues consist of subscription and single copy sales revenues

Circulation volume	2009	2008
Aftonbladet, weekdays	348 800	368 200
Aftonbladet, Sundays	410 800	425 800

OPERATING REVENUES AND PROFIT (EBITA)

SIDE MILLION
BBOO
OPERATING REVENUES ■ PROFIT (EBITA)
Not comparable for the period 2005 - 2007

SvD

(99.4%)

HB Svenska Dagbladet AB (100%)
SvD Annons SB (100%)
Pressens Morgontjänst AB (50%)

Due to the financial crisis, SvD faced the classical challenge: how to accelerate and brake at the same time. A drastic savings programme and major downsizing, mainly of the editorial staff, were combined with aggressive efforts to develop the journalism in all channels.

In August, the largest editorial change in SvD for many years was launched - a major focus on weekend, cultural and more in-depth articles. The work of creating the new journalism together with readers was intensified. A clear example of this is SvD's series of open articles, which received the price for "Best Innovative Entry" during Schibsted Journalism Award.

Opinion journalism was also developed in Korseld (Crossfire), a unique editorial collaboration with Aftonbladet that has become a success with readers. SvD's twittering and blogging editorial department was also given more space in the print newspaper.

Due to an exciting collaboration between the advertising department and business editorial staff, a weekly supplement, SvD Bil & Motor (Cars and Engines) was also launched. Parallel to this, the advertising and marketing department achieved great success despite the difficult market. SvD increased its market shares and further strengthened its position in the real estate, recruitment and car advertising markets. The advertising department was rewarded the Schibsted Sales Award for best sales department.

SvD's circulation once again went against the flow. The print newspaper's circulation on workdays rose by 2.100. In the first quarter, the newspaper had 538.000 readers, the highest number of readers ever. 2009 was the seventh year running with an increase in readership.

In the middle of the economic slump, the company started SvD Accent, which sells special products such as travel, art, kitchen equipment, various courses, etc. This is a new source of revenue within the framework of SvD's brand and has been very well received.

THE PAST YEAR

• Increased share of the print newspaper market.
• Changes to the print newspaper, with a focus on weekend, cultural, lifestyle and in-depth articles.
• Journalism with greater reader involvement.
• Growth in all channels – simultaneously.
• Higher circulation figures and circulation revenues.

AMBITIONS

• To continue implementing editorial developments, new product in January 2010.
• To reinforce the position as the SvD business newspaper.
• To lay the foundation for a successful move to Schibsted's Swedish media house.
• To continue to capture shares in all markets.
• To create satisfied and loyal customers.

OPERATING PROFIT

SIDE MILLION	2009	2008
Circulation revenues 1)	461	461
Advertising revenues	516	615
Other revenues	82	71
Operating revenues	1 078	1 147
Operating expenses	(1 096)	(1 156)
Income from associated companies	3	3
Operating profit (EBITA)	(14)	(6)
Operating margin (EBITA) (%)	(1.3)	(0.5)
Number of employees	398	456

1) Circulation revenues consist of subscription and single copy sales revenues

Circulation volume	2009	2008
Svenska Dagbladet, weekdays	195 400	193 300
Svenska Dagbladet, Sundays	204 900	203 800

OPERATING REVENUES AND PROFIT (EBITA)

SIDE MILLION
BBOO

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SCHIBSTED ANNUAL REPORT 2009

INTERNATIONAL EDITORIALS

SCHIBSTED TILDAXTMEDER

Sweden's leading website for all those searching for companies, persons or places in Sweden. Established in 2004 and set a traffic record in 2009 with three million unique visitors a week – one of Sweden's absolutely biggest websites. Has launched several new services, including "Gatubild".

TASTELINE.COM

Sweden's largest and best food website, with almost 25,000 recipes and 200,000 visitors each week. Came 4th in Internetworld's top 100 list in 2009. Tasteline can also be accessed from a mobile phone. Mobil.tasteline.com has been chosen as Sweden's fourth-best mobile website by the Mobil news paper.

Prisjakt.nu

Prisjakt Sverige AB runs the Prisjakt.nu website, Sweden's biggest price-comparison website. It came eighth in Internetworld's ranking of Sweden's best websites. In 2009, the service was adapted to suit several languages so that it can expand internationally.

DestinationLSE

The company was fully launched in 2009 – and became profitable. Destination's booking system searches through several hundreds of tour operators' offers. Its ambition is to gather all Swedish travel in one place. This service is based on the same technology as Norway's FINN Reise (Travel).

Prisjakt.dk

Schibsted Tillväxtmedier bought Sweden's largest online travel society, Resdagboken.se, which was started in 2000. It now has 240,000 members. Its users write diaries when they are out travelling, add pictures and create e-mail lists.

SV

Sweden's largest online TV guide. Established in 1999, it is currently the absolute leader in this market. With its focus on user-friendliness, tv.nu plays a key role in helping users to find their way in the jungle of live pictures offered on all channels. Launched in Spain and Italy.

HARD Hat

Hard Hat was started on 1 November 2009, and Schibsted Tillväxtmedier acquired 70 per cent of the company on 1 December. Hard Hat develops and produces live pictures for all digital channels and works closely with several of the biggest online companies in various fields. Five employees.

INTERNATIONAL EDITORIALS

20minutos.es (100%)
Calle 20 (100%)

20 Minutos is Spain's most read general newspaper and has 2.4 million readers every weekday. The newspaper is published in 15 different local versions which cover Spain's largest urban areas. Its readership fell slightly due to reduced circulation. Its lead over other free newspapers increased.

The advertising market has fallen in line with the general slump in the Spanish economy which started in 2007. 20 Minutos had a tough year in 2009, with a large drop in its operating revenues and considerable cutbacks. At the start of 2010, however, there are many indications that the advertising market has bottomed out.

20minutos.es is Spain's third-biggest news website, with almost ten million unique visitors a month at the start of 2010.

THE PAST YEAR

• Schibsted bought out the minority shareholder, Grupo Zeta.
• 20 Minutos reinforced its position as the most read newspaper in Spain.
• The volume of traffic visiting 20minutos.es continued to grow.
• Major cost cuts.

AMBITIONS

• To strengthen its position as Spain's most read newspaper.
• To increase its share of the advertising market.
• To continue to increase the volume of traffic visiting 20minutos.es and further develop the car/engine, housing and finance sections, etc.

OPERATING PROFIT

BOIR MILLION	2009	2008
Operating revenues	28.2	37.3
Operating expenses	(31.8)	(43.0)
Operating profit (EBITA)	(3.6)	(5.7)
Operating margin (EBITA) (%)	(12.8)	(15.3)
Number of employees	188	241

In 2009, 20 Minutes reinforced its position as France's most read newspaper, well ahead of its competitors Metro, L'Equipe (a sports newspaper), Le Parisien and Le Monde. It is published in eight of the country's largest towns and is read by 2.7 million Frenchmen every weekday.

The volume of traffic visiting the 20minutes.fr website grew in 2009 and this is one of France's five most popular news websites.

In a difficult French advertising market, 20 Minutes increased its market share. Its revenues were on a level with those in 2008 but the fourth quarter produced the best results in the company's history, with a 33% operating margin (EBITDA) for the company as a whole.

THE PAST YEAR

• The newspaper's readership rose to 2,745,000.
• The newspaper increased its share of the advertising market.
• 20minutes.fr had more than four million unique visitors each month.
• E24.fr co-located with 20minutes.fr.

AMBITIONS

• To strengthen its position as France's most read newspaper.
• To continue to capture shares in the advertising market.
• To continue to increase the volume of traffic visiting 20minutes.fr.

OPERATING PROFIT

BOIR MILLION	2009	2008
Operating revenues	49.3	50.4
Operating expenses	(48.4)	(49.7)
Operating profit (EBITA)	0.9	0.7
Operating margin (EBITA) (%)	1.8	1.4
Number of employees	176	182

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SCHIBSTED ANNUAL REPORT 2009

FREE NEWSPAPERS

20 MINUTOS / 20 MINUTES See page 14

MOD UNION (79.4%)

The Moi Rayon weekly newspaper is St Petersburg's second-most-read newspaper, with 738,000 readers of each edition. It is published in 14 different variants each Friday and is mainly distributed at shopping centres and supermarkets. The volume of traffic visiting the Mr7.ru website increased a lot in 2009 making this one of St Petersburg's three largest news websites at the beginning of 2010. 74 employees.

THE PAST YEAR

• Moi Rayon lost its position as St Petersburg's most-read newspaper to Argumenty i fakty, but the reader statistics show it is just behind this newspaper.
• Schibsted increased its stake from 66.6 per cent to 79.4 per cent after the company was restructured.
• The Moscow edition of the newspaper was converted into a franchise.

15 MIN (100%)

The Lithuanian free newspaper 15 Min is the second-largest newspaper in the country's three most important towns, Vilnius, Kaunas and Klaipeda. Due to the decline in the advertising market, the newspaper started to be published three days a week instead of five at the end of 2009. The online newspaper, 15min.lt, which was launched as late as in August 2008, experienced very strong growth in its volume of traffic in 2009 and at the beginning of 2010 it is aspiring to the position of Lithuania's third-most-visited news website. 97 employees.

THE PAST YEAR

• The newspaper is now published three days a week instead of five.
• Strong growth in the volume of traffic visiting 15min.lt.
• The print and online editorial staffs were merged.

Unnaleht (50%)

Linnaleht is the leading free newspaper in Estonia. It was published less frequently in 2009 and is now published once a week in Tallinn - in an Estonian and Russian edition - Tartu and Pärnu. 11 employees.

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Eesti

Postimees (100%), Ühinenud Ajalehed (66%), SL Õhtuleht (50%), Linnaleht (50%), Ajakirjade Kirjastus (50%), Kroonpress (99.7%), Kanal 2 (100%), Soov (100%), ZLG (100%), 15 Min (100%), Plius (100%).

The Eesti Meedia Group is the holding company for all of Schibsted's operations in Estonia and Lithuania. It is the dominant media company in Estonia. It also owns the largest TV channel (Kanal 2).

The Lithuanian operations consist of ZLG, a weekly magazine publishing house, 15 Min, a free newspaper, and Plius, a classified ads company, all of which hold leading positions in their market segments.

The Baltic countries have been badly affected by the financial downturn in Europe. The gross domestic product fell by around 15 per cent while the advertising markets shrank by all of 50 per cent in some segments. The decline in revenue led to considerable downsizing and restructuring processes.

THE PAST YEAR

• An operating profit despite the major economic downturn.
• Good growth in Kroonpress's volume of orders, revenues and results.
• Strong growth in the volume of traffic visiting the Postimees.ee and 15min.lt news websites.
• E24 launched in Estonia with great success.

AMBITIONS

• To continue achieving good results.
• To safeguard the number one positions.
• To continue to increase the volume of online traffic.
• To utilise synergies in Lithuania.

OPERATING PROFIT

KRE MILLION	2009	2008
Operating revenues	1 069	1 309
Operating expenses	(1 048)	(1 282)
Income from associated companies	1	2
Operating profit (EBITA)	22	29
Operating margin (EBITA) (%)	2.1	2.2
Number of employees	1 200	1 271

Postimees is Estonia's largest newspaper with a circulation of 59,000 for the Estonian-language variant and of 12,000 for the Russian-language one. Postimees also publishes a weekly newspaper, Den za Dnyom, which is the second-most-read Russian-language newspaper after Postimees. The Postimees.ee news website is Estonia's second largest, with more than 600,000 unique visitors each week. 242 employees.

THE PAST YEAR

• A stable circulation despite the downturn.
• Postimees and Den za Dnyom now dominate the Russian-language newspaper market.
• E24.ee, which is run by Postimees.ee, immediately became Estonia's most visited financial news website.

StÕhtuleht (50%)

Õhtuleht is Estonia's second-largest newspaper after Postimees. Although it is a more tabloid newspaper than Postimees it is mainly distributed to subscribers. Õhtuleht did relatively well in 2009 and was one of Eesti Meedia's most profitable projects. 52 employees.

THE PAST YEAR

• It reinforced its position as Estonia's second-most-read newspaper.
• A decline in advertising revenues, but nonetheless a satisfactory operating profit.
• 27 per cent growth in the volume of traffic visiting Õhtuleht.ee.

ÜHINENUD AJALEHED (66%)

Ühinenud Ajalehed is the parent company of five of Estonia's most important local and regional newspapers. This is Estonia's answer to Media Norge and was established at the year-end 2008. The local advertising markets declined less than the national one in 2009, and the five newspapers together produced a good operating profit in 2009. 119 employees.

THE PAST YEAR

• All the newspapers retained their strong market positions in their regions.
• The total circulation fell by around 10%.
• Strong growth in the volume of traffic visiting the newspapers' websites.

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SCHIBSTED ANNUAL REPORT 2009

ONLINE NEWSPAPERS

19 February 2009 (91.0%)

Sweden's largest news website. Most people choose Aftonbladet.se as their source of news and it is an interesting meeting place for its visitors. Major news, such as the death of Michael Jackson and the helicopter robbery in Stockholm, have led to the volume of traffic increasing to incredible heights and there were five million unique visitors per week at the beginning of 2010. Dramatic increase for web-TV and reader contribution too. The same is true for mobile phone services. Yet more evidence that things are progressing: the online advertising revenues also rose in the last four months of 2009.

THE PAST YEAR

• Successful coverage of the helicopter robbery and Michael Jackson's death.
• Web-TV achieved impressive view ratings.
• Reader contribution is becoming more and more important.

20 February 2009 (99.41%)

VG Multimedia (100%)

Nettby Community AS (70%), E 24 AS (40%), Tesked AB (30%), Absolutt Fotball AS (50%), Pengene dine (100%).

VG Nett has an established position as Norway's biggest website. It has for years increased its traffic volume through sound coverage of news, sport, entertainment and consumer-related topics. It allows for a high level of interactiveness. It has achieved considerable traffic growth in a challenging year and very good developments for VGTV and has launched successful online football programmes. VG Mobil strengthened its number one position during the year. Four popular iPhone applications were developed. 92 employees.

THE PAST YEAR

• Maintained its sound number one position.
• Successful launch of online football.
• VGTV attracted attention with live pictures in the Fanthomas animation series.

21 February 2009 (80.44%)

With its massive news coverage combined with a number of useful and user-friendly services, Aftenposten.no is maintaining its position as one of Norway's biggest online newspapers. At the same time, it has made a profit instead of the loss it made last year. The use of Aftenposten's mobile phone services more than doubled in 2009.

THE PAST YEAR

• Chosen as Website of the Year.
• New classified ads service for recruitment and real estate.
• Launch of own iPhone applications.

22 February 2009 (99.41%)

Has noted a number of new visitors' records and now has almost 900,000 readers each week – an increase of 25 per cent. At the same time, the visits are lasting longer. The focus on greater reader participation has been a success. These advances are rewarded with higher revenues and much greater market shares, as well as by the Schibsted Sales Award, among other things.

THE PAST YEAR

• Sharp increase in online traffic.
• Success with new investigative online journalism.
• Increased market shares with a new design and more advertising-friendly formats.

23 February 2009 (100%)

20minutes.es is Spain's third-biggest news website and had almost 10 million unique visitors each month at the beginning of 2010.

24 February 2009 (50%)

The volume of traffic visiting the 20minutes.fr website increased in 2009 and this website had more than four million visitors each month at the beginning of 2010. That makes 20minutes.fr one of France's five most popular news websites.

25 February 2009 (100%)

Europe's biggest financial website, with more than five million visitors each month. Launched in Estonia too in 2009. Also arranges Sweden's biggest stock exchange competition, E24 Aktie-SM, which has a record number of participants. E24 Entreprenör (Contractor) was launched in 2009 and immediately became Sweden's biggest website for small companies and contractors. 32 employees.

26 February 2009 (88.26%)

E24.no is collaboration between Aftenposten (60%) and VG (40%), and is Norway's largest online financial and business newspaper. This newspaper contains both stock exchange notices and share prices as well as in-depth articles, comments and analyses. 24 employees

27 February 2009 (85%)

E24.fr is the French edition of Schibsted's online financial newspapers. This website was launched in October 2008 and was co-located with 20minutes.fr at the beginning of 2010

28 February 2009 (100%)

E24.ee is run in collaboration with the Postimees online newspaper. It was launched in April 2009 and immediately became Estonia's most visited financial website.

29 February 2009 (100%)

The website of the Postimees newspaper is Estonia's second-largest news website. At the end of 2009, it had 600,000 unique visitors. Its revenues increased despite the falling market.

30 February 2009 (79%)

The free newspaper 15 Min launched its website as late as in August 2008 but it is already one of Lithuania's 10 largest websites, with 450,000 visitors each month. Despite the fierce competition in the news sector, 15min. It aspires to third place among the country's most important news websites. A number of new services were launched during the year, including Zmones24.lt, in cooperation with ZLG. 97 employees.

31 February 2009 (79.4%)

The free newspaper Moi Rayon's news website was relaunched in February 2009 with a new domain – Mr7.ru, a news portal for St Petersburg which also covers the most important national and international news. With just over 300,000 unique visitors each month, Mr7.ru is one of St Petersburg's three largest news websites. 74 employees.

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SCHIBSTED ANNUAL REPORT 2009

OTHER

SCHIBSTED

FORCAL

(100%)

This was where the Schibsted Group started in 1839. Now, it is the fourth-largest book-dominated publishing house in Norway and one of the most profitable. It doubled its operating profit in 2009. Publishes general literature, translated fiction, children's books, light reading, comics and specialist magazines. 82 employees.

SCANPIX

(100%)

The leading supplier of visual products to Norwegian media. Cooperates with the major international picture agencies and also has operations in the Baltic countries. Its revenues fell by 20 per cent due to the financial crisis and structural changes in the industry. Has implemented an extensive process to adapt its operations. 59 employees.

METBRY.NO

(70%)

At the end of 2009, Nettby.no had more than 810,000 active and loyal citizens. Social media are constantly being focused on by media customers. Eight employees.

DINE PENGER

(100%)

Dine Penger AS publishes the Dine Penger magazine, the dinepenger.no website, books and is VG's editorial staff for financial articles. Dine Penger is a personal finance adviser for ordinary people. Market leader in the financial magazine segment. 25 employees.

SANDRE W. EIROBONI

(100%)

Sandrew Metronome is one of the Nordic region's leading film companies. Its business idea is to create, buy and manage film rights in the Nordic market. The company has offices in Stockholm, Oslo, Copenhagen and Helsinki.

AJAKIRJADE KIRJASTUS

(50%)

Ajakirjade Kirjastus, which is owned in equal parts by Eesti Meedia and Ekspress Group, is the dominant player in the Estonian weekly magazine market. Its most important magazine is Kroonika. Difficult advertising market. One magazine has been closed down while two new have been launched. 73 employees.

SCHIBSTED TRYKK

(100%)

Kanal 2 is Estonia's biggest TV channel and is watched by 20 per cent of viewers. Retained its position as Estonia's leading TV channel. A decline in advertisements created challenges. Kanal 11, a digital niche channel, improved its market share. 52 employees.

SCHIBSTED TRYKK

(100%)

Schibsted Trykk is Norway's biggest newspaper printing works and has a modern production facility at Nydalen in Oslo. Produces Aftenposten's morning edition and evening editions, VG and Dagsavisen. It has considerable revenues linked to the production of advertising supplements. 229 employees.

KROONPRESS.NO

(99.7%)

Kroonpress, which is located in the town of Tartu, produces all of Schibsted's Estonian newspapers as well as weekly magazines for both Estonia and Lithuania. In addition, publications for internal and external customers. Strong growth in the printing of magazines and orders from Scandinavia and Lithuania. 244 employees

SCHIBSTED

(100%)

formly leitplus gruel

ZLG (Zumalu leidybos grupel) is the largest publisher of weekly magazines in Lithuania. The company publishes 12 different magazines, of which the most important is Zmones ("People"). A new focus on books produced promising results. 110 employees.

plius.lt

(100%)

Plius is one of Lithuania's biggest classified ads companies, with a strong position in the car ads (Autoplius.lt) and real estate ads (Domoplius.lt) sectors. The company was transferred from SCM to Eesti Meedia. Autoplius.lt is Lithuania's most important marketplace for the purchase and sale of cars. 34 employees.

AGENS VEBRISH

(50%)

Advertising-financed newspaper for the health sector, with physicians, nurses, pharmacists and others in the health sector as its target group, which means it can advertise prescription medicines. Circulation 22,000. 11 employees.

SCHIBSTED

(100%)

The Group's real estate company owns and rents office and production properties in Norway. The premises are mainly used by sister companies. The company shares offices with Schibsted ASA in Oslo.

SCHIBSTED

(100%)

This company is responsible for the Group's external borrowing and investments and currency and interest-rate positions and is the Group's internal bank. For more about Schibsted's financial principles, refer to the Accounting Principles in note 2.

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SCHIBSTED ANNUAL REPORT 2009

SCHIBSTED CLASSIFIED MEDIA

SCHIBSTED CLASSIFIED MEDIA

[100%]

blocket.se, Sweden (100%), BytBil.se, Sweden (100%), leboncoin.fr, France (50%), Car & Boat Media, France (50%), Anuntis Segundamano, Spain (76.23%), InfoJobs.net, Spain (98.5%), Infojobs.it, Italy (72.9%), subito.it srl, Italy (100%), willhaben.at, Austria (50%), mudah.my, Malaysia (50%), Kapaza!, the Netherlands (100%), CustoJusto.pt, Portugal (100%), AggelioPolis.gr, Greece (100%), AyosDito.ph, the Philippines (50%), berniaga.com, Indonesia (50%), tori.fi, Finland (100%) tutti.ch, Switzerland (100%), jófogås.hu, Hungary (100%) (launched in Q1 2010)

The establishment of SCM in 2008 marked a strategic escalation and structuring of Schibsted's international expansion. 2009 was an important year due to the launch of new companies in new markets and the focus on further growth in established markets and sale of operations which fall outside the company's strategy. Innovation and structured collaboration are important key words for further growth.

In 2009, SCM's new CEO, Terje Seljeseth (who took over from Rolv Erik Ryssdal) joined Schibsted's group management. The focus on international classified ads operations is one of the cornerstones of Schibsted's strategy for the future, and the Group believes that a large part of its estimated growth in revenue will come from these operations. Terje Seljeseth was previously the CEO of FINN.no and his background means he has a lot to add to SCM.

SCM wants to make conditions suitable for synergies and the development and sharing of expertise across markets and national boundaries. It has also developed a strong growth strategy for its classified ads operations. SCM now has classified ads operations in Sweden, France, Spain, Argentina, Mexico, Brazil, Colombia, Italy, Austria, Malaysia, Belgium, Portugal, Greece, the Philippines, Indonesia and Finland. In addition, the company started new operations in Switzerland and Hungary in the first quarter of 2010. Its aim is to establish the Blocket concept in new markets and strengthen established market positions. Most of the print-based operations have been closed down. In 2009, SCM stopped publishing printed car ads in France and Mexico. It also

sold its Secondamano operations in Italy, which published some print-based products, and its stake in Bolha in Slovenia.

THE PAST YEAR

• Large number of launches of the Blocket concept.
• Increased its shareholding in Infojobs and now owns 98.5 per cent in Spain and 72.9 per cent in Italy.
• The closure of the print-based operations has more or less been completed.
• The operations in Italy which came under SCM srl (Secondamano) have been sold.

AMBITIONS

• To establish the Blocket concept in new markets.
• To strengthen established market positions.
• To become a market leader for online generalist classified services in countries with new Blocket concepts.
• To increase the revenues in the existing portfolio.

OPERATING PROFIT

BOX MILLION	2009	2008
Operating revenues	186.6	227.2
Operating expenses	(155.1)	(191.8)
Income from associated companies	0.0	0.2
Operating profit (EBITA)	31.5	35.6
Operating margin (EBITA) (%)	16.9	15.7
Number of employees	1 207	1 637

blocket.se

[100%]

SCHIBSTED CLASSIFIED MEDIA

Sweden (100%)

BytBil AB (100%)

Blocket was established in 1996 and has grown from a regional company into Sweden's biggest marketplace. It is Sweden's third-largest website, with more than three million unique visitors each week.

Almost seven out of 10 Swedes have bought or sold something on Blocket. In Sweden, goods worth SEK 192 billion were advertised on Blocket in 2009 (equivalent to €19 billion/ NOK 155 billion). That is equal to 6.4 per cent of Sweden's GDP. The concept has been very successfully exported to several other countries.

THE PAST YEAR

• Continued strong growth in the volume of traffic and advertisements.
• Continuous improvement of the services and new functions, such as an iPhone application.
• Launched in four new countries in 2009: the Philippines, Greece, Indonesia and Finland.

bytbil Sweden (100%)

Bytbil.com was started in 1997 as one of the first car ad websites in Sweden. Since its start, it has solely worked with companies. Today, around 95 per cent of all car sales in Sweden take place on Bytbil. In other words, it has an extremely strong market position.

THE PAST YEAR

• Successful efforts to increase the number of visitors.
• Continued development of bytbil.com.
• A new product website.
• The development of a publishing system.
• New version of service online.

OPERATING PROFIT (Blocket og BytBil)

SEK MILLION	2009	2008
Operating revenues	551	475
Operating expenses	(228)	(195)
Operating profit (EBITA)	323	280
Operating margin (EBITA) (%)	58.7	58.9
Number of employees	62	50

InfoJobs.net infojobs.net (Spain) (98.5%)

InfoJobs.it (Italy) (72.9%)

Infojobs.net maintained its position as the clear market leader in the field of online recruitment in the Spanish job market in 2009. In addition to recruitment adverts from more than 12,000 companies, a considerable number of CVs are registered on the website. Unemployment has risen sharply as a result of tough times in the Spanish job market and this has had an effect on Infojobs. Fewer advertised jobs affect the number of adverts and the revenues.

Infojobs.net in Spain owns 74 per cent of a corresponding website in Italy. Infojobs.it is based on the same concept and technology and was launched in 2004. The recruitment website in Italy does not yet have as strong a position as the one in Spain, due to strong competition from other players in the Italian recruitment

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SCHIBSTED ANNUAL REPORT 2009

market. The website has more unique visitors each month than its main competitor, Monster. No. of man-years: 167 in Infojobs in Spain and 14 in Infojobs in Italy.

Groundman.ie

(Spain) (76.2%)

Segundamano.es is the company's website for the purchase and sale of miscellaneous items in Spain. The classified ads operations use the same technical solution as Blocket in Sweden. Segundamano.es is the clear leader in the Spanish generalist classifieds market. It has 1.2 million adverts in its database and more than five million people visit the website each month.

fotocasa.es

(Spain) (76.2%)

Fotocasa.es is the real estate ads portal in Spain and, together with its main competitor Idealista, it has a leading position in the real estate vertical. For several years, these two companies have competed for the market leader position. Fotocasa has almost half a million homes in its database. It is continuing to work towards the goal of becoming the dominant market leader in the Spanish real estate market.

coches.ent

(Spain) (76.2%)

Coches.net is the car classified ads service in Spain. Coches.net is twice as big as its main competitor AutoScout24.es and has around 2.5 million visitors each month. It developed well throughout 2009 and its focus in 2010 is on maintaining and strengthening its position. No. of man-years: all the Spanish operations (excluding Infojobs.net) 557.

Latin America

(76.2%)

Several classified ads websites in Latin America, the most important of which are Autofoco.com and Segundamano.com.ar (Argentina), Infojobs.com.br and Balcao.com.br (Brazil) and Segundamano.com.mx (Mexico). There are also services in Colombia.

subito.it

Italy) (100%)

A website for the sale of miscellaneous items that was launched in 2007 based on Blocket's concept and technology. The service has more than one million adverts and more than five million visitors each month. Subito.it is facing stiff competition from other companies, including eBay and eBay's classified ads company Kijiji. No. of man-years: 8

leboncoin.fr

France) (50%)

This is based on the concept and technology of Blocket.se in Sweden and is a 50/50 joint venture with French media company SPIR. Launched in 2006, it is the largest classified ads website in France. The company made a profit (EBITDA) after two and a half years and had an EBITDA margin of 47 per cent in 2009. The website has all of 9.3 million adverts in its database and more than 200,000 new adverts every day. More than 20 million people use the service each month. Leboncoin.fr is the clear market leader in the French generalist classifieds market. No. of man-years: 11

Car.Boat

(France) (50%)

A 50/50 joint venture with French media company SPIR, established in 2007. Despite stiff competition and a large number of other companies, it has a strong position in the car classified ads market and is regarded as a high quality website for car adverts. Has been published in a print and online version but most of the print operations were closed down in 2009. Is experiencing fierce competition from leboncoin.fr in the private adverts market. No. of man-years: 203

MILLIARA.R.A.C.

(Austria) (50%)

Launched in January 2006 based on the same concept and technology as FINN.no. An Austrian classified ads website, a joint venture between SCM and Styria Medien AG. The website is particularly strong in the real estate and miscellaneous items ads verticals and the volume of traffic is in general increasing. No. of man-years: 27

Kapaza!

(Belgium) (100%)

This company was acquired by Schibsted in May 2008 and has the biggest and most visited classified ads website in Belgium. More than three million unique visitors each month. A generalist classifieds website that is strong in the fields of miscellaneous items and car ads. No. of man-years: 8

CustaJusto.ir

(Portugal) (100%)

CustoJusto.pt was started in the last quarter of 2008 and is part of the Blocket family. The name means "Fair Price". Competition from the market leader, olx.pt, has been stronger than first assumed and it has still not achieved the desired position in the Portuguese market. No. of man-years: 1

mudah.com.my

(Malaysia) (50%)

Mudah.my (the name means "simple" and "practical") was started in Malaysia in December 2007, the first "Blocket" company outside Europe. The website is a collaboration with Singapore Press Holdings and is the largest classified ads service in Malaysia, with around two million visitors each month. Its database contains half a million adverts.

In addition and in cooperation with Singapore Press Holdings, SCM launched AyosDito.ph in the Philippines and Berniaga.com in Indonesia in 2009, and these are also members of the Blocket family. In total the Asian operations employ 23 man-years.

AggelisPellis.gr

(Greece) (100%)

A Blocket copy that was launched in July 2009. This website is in a development phase and its volume of traffic has increased a lot despite its young age. No. of man-years: 1

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Corporate Social Responsibility

Our most important corporate social responsibility

EDITORIAL FREEDOM

There are three key words for a large, serious media group like Schibsted: responsibility, credibility and quality. These apply in relation to the readers and users of our media, customers, employees, shareholders and the society in which we work.

At the forefront is the publishing responsibility: to safeguard editorial independence and defend freedom of speech in the media which we own. Free media are among the main contributors to strong, live democracies. The Group's value base rests on this foundation and is stipulated and anchored in Schibsted ASA's articles of association. The objects clause states:

"The shareholders are to make conditions suitable so that the Company runs its information operations in a way that fully safeguards editorial freedom and integrity. The requirement of editorial freedom and integrity shall be normative for all the media and publications in the Schibsted Group's Norwegian and foreign companies."

The Group's management has a duty to ensure that Schibsted, as a media owner, lives up to its publishing principles.

DEMOCRACY AND DIVERSITY

Schibsted's editorially based media defend important values such as religious freedom, tolerance, human rights and democratic principles. These media have differing political and ideological foundations. They reflect a diversity of opinion which includes the trade union movement and social democracy as well as liberal attitudes and conservatism. For this reason, they also provide different ways of looking at issues and views on important questions in current debates on social affairs.

There is only one fundamental ideological limitation in the Group's value base: it is unthinkable for Schibsted to own media which proclaim opinions that do not support a democratic view of society.

FREEDOM AND RESPONSIBILITY

All the editorial operations of Schibsted-owned media must comply with the legislation and ethical regulations of the country where the operations take place. Editorial quality and credibility are the cornerstone of the Group's publishing activities and these, together with the individual medium's articles of association, form the basis for the editors' work. The editor-in-chief has full freedom and is personally and fully responsible for the content of the medium of which he or she is in charge.

The Group employs more than 2,000 journalists in its wholly and partly owned companies. Teaching editorial employees, irrespective of where they work, about Schibsted's fundamental attitudes to editorial activities is an important task.

A significant milestone in the work of strengthening the Group's publishing activities was the formation of the Schibsted Editors' Forum in the autumn of 2007. Through this forum, Schibsted has created a European network where leading editors in our media companies can discuss common challenges, exchange ideas and experiences and deal with fundamental problems which affect editors in individual countries and across national boundaries.

The forum can also state pan-European editorial views to Schibsted's Group management and governing bodies. The forum meets regularly twice a year. At the end of 2009, the Schibsted Editors' Forum consisted of around 40 editors-in-chief, deputy editors-in-chief and news/managing editors from Norway, Sweden, France, Spain, Estonia, Russia and Lithuania.

PRIZE-WINNING JOURNALISM

When the volume of information in the media increases, credibility - the confidence of the users - becomes more and more important. As a way of improving the quality of the journalistic work - and to clearly show that good journalism is fundamentally important in Schibsted - the Group established the Schibsted Journalism Awards in 2008.

Three awards are competed for – for the best story, best innovation and best exposé. Projects carried out by Schibsted journalists and photographers in all the countries where Schibsted has editorial activities were assessed by a multinational jury. In 2010, the awards ceremony and a journalist seminar for 250 editorial staff will take place in the Oslo Consert Hall at the beginning of June.

SUSTAINABLE VALUE CREATION

Schibsted has adopted the UN's Global Compact and the OECD's guidelines for multinational companies, two documents which form a starting point for the concepts of sustainable value creation and Corporate Social Responsibility.

Sustainable value creation means creating both financial and social values. There is a focus on the companies' attitudes to human rights, gender equality, discrimination, health, safety and the environment (HSE) and responsible business conduct and opposition to forced labour, child labour, discrimination and corruption as well as a wide range of environmental issues.

The OECD guidelines are voluntary principles which cover a number of areas relating to corporate social responsibility. They apply to such things as a company's conduct both in or out from countries that have adopted the guidelines and everywhere else where companies have operations. These are the only guidelines for multinational companies that are approved by the authorities.

Schibsted's leading subsidiaries have clear guidelines relating to these areas. The Group's management principles and visions, which are known to all the subsidiaries' top managements, are also important here. In future, efforts will be made to increase the awareness of the UN Global Compact, the OECD guidelines and sustainable value creation at management level throughout the Group.

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SCHIBSTED ANNUAL REPORT 2009

THE TINIUS TRUST

Tinius NAGELL-ERICHSEN

"Ownership is much more significant to a newspaper than a normal industrial company. A newspaper is not a standard product, but rather a forum for essential social information and debate on which our democratic society rests".

So said the now deceased Tinius Nagell-Erichsen when the Trust was established in 1996. He was Schibsted's largest shareholder and the first chairman of the board. His reason for establishing the Trust was to prevent his shareholding in the Schibsted Group from being broken up.

He wanted to use his influence to safeguard Schibsted as a media group characterised by free, independent editorial staffs, credibility and quality and to ensure its long-term, healthy financial development. This is also stipulated in the objects clause of the Trust's articles of association.

The Trust is currently Schibsted's largest owner, with a shareholding of 26.1 per cent. It is managed by the board of the Tinius Trust, of which Ole Jacob Sunde is the chairman. Per Egil Hegge and John Rein are members of the board.

GENDER EQUALITY AND THE ENVIRONMENT

Schibsted is a knowledge group that makes its living from skilled employees. It is our clear goal to ensure that women and men have the same development opportunities. In 2009, 47 per cent of those participating in the competence programmes were women while 53 per cent were men. Over the years, the ratio has been 46:54. Of those participating in Schibsted's trainee programmes, 45 per cent were women and 55 per cent were men. Since these programmes started, 46 per cent of the participants have been women while 54 per cent have been men.

Many of our companies are making vigorous efforts to ensure gender equality and the four large media houses are actively recruiting skilled women. Although our companies have a high level of gender equality that is increasing slowly from year to year, there is still some way to go before it can be said that there is full gender equality.

Fifty per cent of the shareholder-elected members of Schibsted ASAs board are women and this percentage is the same if we include the employee representatives.

WORKING ENVIRONMENT

Our aim is to provide safe workplaces where our employees enjoy working and there is good collaboration between colleagues and between the management and other staff. Improvements are achieved through the continuous HSE work and regular working environment surveys. Schibsted ASA and a steadily increasing number of subsidiaries take part in the Great Place to Work Institute's annual surveys. Many measures have been implemented in several companies in the wake of these results. Two years ago, 2,500 Schibsted employees took part. In the survey which was concluded in February 2010, 3,748 employees of 39 companies in six countries participated.

The Group's overall sickness absence rate has fallen to less than five per cent. The level of injury in the Group's companies is low. The printing companies' operations are particularly exposed to injury but no accidents or major incidents were reported in 2009 either. A total of 15 minor injuries were registered in Schibsted's printing companies during the year, mainly crushing injuries or cuts.

EXTERNAL ENVIRONMENT

Our companies' operations comply with prevailing environmental regulations. Newspapers are produced digitally until they go to the printing plant. Schibsted now owns six printing plants: Schibsted Trykk in Norway and Kroonpress in Estonia in addition to Media Norge's two printing plants in Bergen, one in Stavanger and one in Kristiansand.

Printing operations are basically a relatively clean industry. Where polluting substances are used, the processes take place in closed systems. Almost all waste is sorted - Schibsted Trykk now sorts 99 per cent of its waste. Special waste is collected by authorised carriers. The volume of waste has been considerably reduced and 96 per cent of the total volume consists of wastepaper, cardboard, roll waste and undistributed newspapers

The printing plant at Nydalen in Oslo is a member of Green Point and pays an environmental fee which ensures that all packaging is properly dealt with and all external suppliers are inspected. The printing plant has started the process of obtaining approval for the use of the Nordic Swan Ecolabel (Svanemerket).

The printing plants used a total of 117 thousand tonnes of paper, 2,466 tonnes of printer's ink and colours and 38.2 GWh of electricity in 2009. The consumption of paper thus increased sharply but this is due to the addition of Media Norge's printing plants.

The two printing plants that were reported last year achieved a total decrease of 8.8 per cent, with Schibsted Trykk attaining a considerable reduction and Kroonpress making good progress.

The newspaper companies in Norway and Sweden arrange for the collection of unsold newspapers for recycling.

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SCHIBSTED ANNUAL REPORT 2009

SHAREHOLDER INFORMATION

Schibsted is a listed company, and Schibsted's board emphasizes that shares in the company are perceived to be an interesting investment alternative.

A competitive rate of return is to be based on healthy finances. The goal is to safeguard the return through long-term growth in the share price and dividend. The company's shares should, to the largest possible extent, achieve a price that reflects the company's long-term earnings ability.

The strategy and vision that Schibsted's board has adopted entail rapid changes and a high level of development of the Group's operations. Schibsted's capital structure must be sufficiently robust in order for us to maintain desired financial flexibility. Schibsted's main platform is its positions in the Scandinavian media market and its centre of gravity is the newspaper sector. These operations are affected by cyclical fluctuations. On the other hand, strong brands such as VG, Aftenposten and Aftonbladet together with well established online classifieds positions contribute to securing long-term stable positions.

STABILITY

Blommenholm Industrier, which is controlled by the Tinius Trust, is Schibsted's main shareholder –which gives the Group long-term predictability in terms of ownership. Another consequence of this is that the number of shares issued will normally be stable over a long period of time. Accordingly, the earnings from operations, combined with loans, will be the most important source of financing for growth in the form of acquisitions or efforts in new ventures. This indicates that freedom of action should be ensured through a relatively large equity and a low debt/equity ratio over time. Financial independence and a good financial position are also essential for ensuring public confidence in and the credibility of our various media.

DIVIDENDS AND SHARE BUY BACKS

Dividends combined with the opportunity to buy back shares are regarded as a suitable tool for adjusting our capital structure. Schibsted places emphasis on a fixed dividend payout ratio, which over time is to be 25-40 per cent of the Group's cash flow per share. In addition, the Board wants the dividend to be stable over time. In years when economic conditions are weak, the dividend level will be maintained as long as the Group's capital structure allows this.

The board has proposed to the Annual General Meeting to pay a dividend of NOK 1.50 per share for 2009. Dependent on the decision of the annual general meeting, the dividend will be paid out on 27 May to those registered as shareholders on the day of the meeting.

The general meeting has authorized Schibsted's board to repurchase up to 10 per cent of the shares in the company. The repurchases will be made in the market over time and must be seen in connection with Schibsted's dividend policy, investment opportunities and long-term perspective regarding the Group's capital structure. The board proposes to the Annual General Meeting to renew the authorization for one year at this year's annual general meeting and that it may also be used in an acquisition situation. No shares were repurchased in the market during 2009. However, 39,500 Schibsted shares were acquired as a consequence of the establishing of Media Norge. The shares are held by Bergens Tidende.

Communication with owners, investors and analysts in the Norwegian and international markets is a highly prioritized task for Schibsted's management and Investor Relations (IR) department in order to ensure that relevant information is given to the market at the right time. This is intended to form the basis for the correct pricing of the Schibsted share.

Schibsted publishes all financial information, such as presentations, quarterly and annual reports, stock exchange notifications, etc, on its website, www.schibsted.com/ir.

SHARE PRICE DEVELOPMENTS

The Schibsted share is listed on Oslo Børs (Oslo Stock Exchange). The share price was NOK 66.16 at the beginning of 2009, adjusted for the effect of the split out of subscriptions rights in connections with a rights issue in 2009. At the year-end, the share price was NOK 130.10. No dividend was paid out in 2009, which implies that the return was 96.6 per cent during the year. The Oslo Stock Exchange Benchmark Index (OSEBX) appreciated by 64.8 per cent during the same period. The DJ Stoxx Media Index, which is a broad benchmark of the media sector in Europe, increased with 6.5 per cent in 2009. This index is regarded as being less affected by cyclical fluctuations than the Schibsted share.

DIVIDEND PER SHARE NOK
1996-2009

SHARE PRICE DEVELOPMENT
2009

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SCHIBSTED ANNUAL REPORT 2009

FINANCIAL CALENDAR 2010
Q1 Report 2010: 12 May 2010
Annual General Meeting 2010: 12 May 2010
Q2 Report 2010: 13 August 2010
Q3 Report 2010: 12 November 2010

SHAREHOLDERS PER COUNTRY
Norway 55.4%
USA 14.3%
Great Britain 13.0%
Sweden 5.4%

On average, 453,675 Schibsted shares were traded daily in 2009, 23 per cent more than in 2008. At the year-end 2009, 45 per cent of the Schibsted shares were owned by foreign-resident shareholders. One year earlier, this figure was 46 per cent. The number of shareholders increased from 4,195 to 4,754 in 2009.

EMPLOYEE SHARE SCHEME
Schibsted has a share scheme for the Group's employees which gives them an opportunity to take part in the value creation which is taking place in the Group. In 2009, employees were each given the chance to buy shares with a market value of NOK 7,500 at a 20 per cent discount, in accordance with the Norwegian Tax Act's regulations. 13 per cent of the employees offered the chance to buy shares did so, compared to 21 per cent in 2008.

INVESTOR CONTACTS
Trond Berger, Executive Vice President & CFO
E-mail: trond.berger@schibsted.no

Jo Christian Steigedal, IR Officer
E-mail: jo.christian.steigedal@schibsted.no
Phone: +47 23 10 66 00, Fax: +47 23 10 66 01

10 LARGEST SHAREHOLDERS AS AT 31 DECEMBER 2009
| | Shares | Nominee |
| --- | --- | --- |
| Blommenholm Industrier | 29 158 589 | 27.0% |
| Folketrygdfondet | 7 062 543 | 6.5% |
| JPMorgan Chase Bank | 6 108 925 | 5.7% |
| State Street Bank And Trust | 5 764 758 | 5.3% |
| Bank Of New York Mellon | 5 067 340 | 4.7% |
| Schibsted ASA | 4 660 641 | 4.3% |
| NWT Media AS | 2 962 619 | 2.7% |
| Skandinaviska Enskilda Banken | 2 119 000 | 2.0% |
| Orkla ASA | 1 945 200 | 1.8% |
| SHB Stockholm Clients | 1 940 237 | 1.8% |
| ) Nominee-konto | | |

FOREIGN-RESIDENT SHAREHOLDERS
No. of shareholders: 4,754
Total no. of shares issued: 108,003,615
Of which own shares: 4,700,141

SCHIBSTED EUROPEAN WORK COUNCIL (EWC)

Schibsted's Group Council - the Schibsted European Work Council (EWC) - was established in 2004 in accordance with EU guidelines. The Council is intended to be a forum for information, dialogue and consultation between employees and the group management. Another of its important tasks is to create contact and dialogue between employees across national boundaries.

The Council currently consists of 34 representatives elected by and from among the employees. At the beginning, the EWC's members came from Norway, Sweden and Estonia. In 2009, Spain, France, Lithuania and Russia were also represented. In December, it was decided that Italy is to be given a place as a representative of those countries that do not have a permanent representative on the Council.

The Council meets twice a year. These meetings last for three days and the CEO presents a report on the current situation. The two group employee representatives – Marianne Falk from SvD and Terje Johansen from Aftenposten – share the position as chairperson until the spring meeting in April 2010. In addition to these, the working committee has consisted of Anne-Lise von der Fehr from VG, who is also one of the employee representatives on the Group Board, and Per Syversen from Aftenposten.

GROUP EMPLOYEE REPRESENTATIVES

Since October 2007, Schibsted has had two full-time Group employee representatives. Their function is anchored in the central Norwegian body of agreements. In 2007, an agreement was entered into between Schibsted ASA and the local unions in Aftenposten, Schibsted Trykk (printing plant) and VG regarding the election of two such employee representatives.

Norway. This is currently Sweden. The two employee representatives attend Schibsted ASA's board meetings and are entitled to speak and submit proposals at them. They work closely with the two elected employee representatives on Schibsted ASA's board, with the European Works Council's working environment committee and with other employee forums.

Their task is to safeguard the interests of all the employees – whether unionised or not – in relation to Schibsted in cases dealt with at Group level. One of the Group employee representatives is to be elected in Norway, while the other is to be elected in the country that is currently the most important or most central in the Schibsted sphere outside

Marianne Falk was elected by the heads of the Swedish unions. She has worked for Svenska Dagbladet as a journalist and project manager. Terje Johansen was elected by the heads of the Norwegian unions. He is a typographer in Aftenposten and was formerly the head of Aftenposten's Union of Graphic Workers.

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Corporate Governance

CORPORATE GOVERNANCE

Schibsted's corporate governance is based on Schibsted's publishing tradition and the value base that has always been key to the Group's operations.

One of several cornerstones of Schibsted's vision is that Schibsted is to be a group that contributes to democracy and diversity through its integrity and editorial independence. Schibsted is to respect the fact that different media are based on varying publishing and political viewpoints and have individual characteristics. The Group's publications are to strive to achieve quality and credibility and must defend values such as freedom of religion, tolerance, human rights and democratic principles. The board is working to ensure the long-term, healthy financial development of the Schibsted Group.

The requirements of editorial freedom and integrity are to be normative for all the media and publications of the Group's Norwegian and foreign companies. This is so central to the Group's corporate governance that it is also stated in Schibsted's Articles of Association.

Schibsted's corporate governance is also based on the Norwegian Corporate Governance Recommendations ("the Recommendations"). The main principles of Schibsted's corporate governance are stated below. It has been more natural to discuss other parts of the Recommendations elsewhere in the annual report.

SHAREHOLDERS

Schibsted has one class of shares, with equal rights attaching to each share.

Due to Schibsted's publishing responsibilities and role in society as a media company, Schibsted's independence and integrity are guaranteed by restrictions on ownership and voting rights stipulated in the Articles of Association.

§7 of the Articles of Association guarantees that important decisions relating to the Group's key companies are to be submitted to Schibsted's shareholders for their approval. According to the wording of this provision, any amendment to the Articles of Association or any sale of shares or operations or corresponding transaction in any subsidiary is to be submitted to Schibsted's General Meeting for approval, provided these are not intercompany transactions, which are exempt in their entirety. Through annual resolutions, the General Meeting can authorise the Group's board to manage further specified parts of the protection which is inherent in this provision. Such an authorisation was given at last year's Annual General Meeting and it will be proposed that this authorisation be renewed, with certain simplifications, at this year's Annual General Meeting. In total, the proposed authorisation means that major transactions are not covered by the Board's authorisation and must thus be submitted to Schibsted's General Meeting. The proposal is explained in further detail in the notice of the general meeting.

Any shareholder owning at least 25 per cent of the shares in the company is entitled to appoint one director directly. Blommenholm Industrier AS, which owns 270 per cent of the shares, is the only shareholder that has this right. The four voting A shares in Blommenholm Industrier AS are owned by the Tinius Trust. The 999,996 B shares are owned by Alba, Odden, Faros and Beltenut, private limited companies which each own 249,999 shares. These four companies were owned by the estate of Tinius Nagell-Erichsen at the year-end. The Tinius Trust is described in more detail in the report on corporate social responsibility, in the Trust's own annual report and on the Trust's website, www.tinius.com.

KEY BODIES

The company is organised as a public limited company, with the General Meeting as its supreme authority, a Group board, an external auditor and a Group chief executive officer who is responsible to the Group board. Schibsted is exempt from the rules regarding the establishment of a corporate assembly.

THE GROUP'S BOARD OF DIRECTORS

The board consists of eight directors. Six of these are elected by the shareholders, while two are elected by and from among the employees of the Group's Norwegian companies. The board's shareholder-elected members are elected for one year at a time. The employee-elected representatives are elected for two years at a time.

GROUP EMPLOYEE REPRESENTATIVES

A Group employee representative scheme has been established to safeguard the employees' interests vis-à-vis the group management in issues that are dealt with at Group level and which may be of importance to the employees of the Group as a whole. One Group employee representative has been elected from Norway and one from Sweden. Both attend board meetings as observers. The Group employee representative scheme is described in further detail on page 23.

THE EDITORS

The Group's international editors' forum is described in further detail under corporate social responsibility. One of the editors has been elected as an observer on the board.

THE BOARD'S WORK

The board works on the basis of an annual meeting schedule which is normally decided on at the first meeting after the General Meeting. At that same meeting, the board elects the members of the board's Compensation Committee and Audit Committee. The company's legal director is the Group board secretary.

The meeting schedule, board documents and other important documents linked to the board's work (stock exchange manual, board instructions, mandates for the board and committees, stock exchange notices and press releases, etc), as well as general analyses and market information, are available to the directors via the Board Portal, which is a web-based reading tool for the directors.

The board is regularly invited to selected seminars and conferences arranged by Schibsted – such as Schibsted's annual "Journalism Award" From time to time, the directors are also invited to take part in Schibsted's analyst presentations outside Oslo. Schibsted became a member of the Norwegian Institute of Directors in 2009, and this gives the directors an opportunity to participate in seminars and discussion groups that focus on key issues which affect the board's work and the work in the board's committees.

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SCHIBSTED ANNUAL REPORT 2009

COMPENSATION COMMITTEE

Marie EHRLING
Ole Jacob SUNDE
Eva LINDQUIST

The chairman of the board attends Schibsted's presentation of its quarterly results in Oslo.

In 2009, the board held a total of 10 meetings, of which two were extraordinary meetings and one was a strategy meeting that lasted for two days. In addition, some issues were decided on in e-mails following discussions at meetings. The board believes such a procedure may be justifiable when issues have previously been discussed at a board meeting. The strategy meeting is held at the beginning of summer each year, normally in June, and forms the basis of the Group's budget processes. Very few of the directors are unable to attend the board meetings or committee meetings. During the 2009-2010 election period, one director was unable to attend an Audit Committee meeting due to illness.

The board assesses the instructions to the board and general management each year. As a management tool for the continuous follow-up and control of the Group's operations, the board receives a thorough situation report from the management. This includes financial reports on the Group's main figures, the status of business factors, financial market information and a status report for each business area. The Group board has established routines for following up and managing the Group's ongoing projects. The creation of an Audit Committee has strengthened this function in the Group.

In 2009, the board introduced the "board half-hour," at which only the eight directors are present. The observers and management do not attend. Typical issues discussed during this part of the meeting are those which are prepared by the Compensation Committee.

In order to strengthen and utilise the directors' expertise and experience relating to the Schibsted Group's operations, some Group directors are also members of the boards of the Group's subsidiaries. Among the shareholder-elected directors, these are currently Karl-Christian Agerup, a director of Aftenposten, and Monica Caneman, a director of Schibsted Sverige.

THE BOARD'S USE OF COMMITTEES IN ITS BOARD WORK

As Schibsted has gradually grown in size and extent and become more international, the board's scope of work and the complexity of the issues dealt with have increased. In the board's view, the creation of a Compensation Committee and Audit Committee has improved the board's preparatory work and discussions of complicated cases relating to these committees' areas of work. The committees function well and interact well with the board as regards both the exchange of information and the division of responsibilities and work. The committees allow the board to deal thoroughly with issues in important areas relating to corporate governance and internal controls, and give the board more time to discuss fundamental and strategic issues. At the same time, the Group board is aware that the creation of committees may lead to the board having less responsibility for issues. Committees are therefore only used when the complexity and scope of an issue so require.

THE GROUP BOARD'S COMPENSATION COMMITTEE

The Compensation Committee is elected by the Group board for one year at a time. The Compensation Committee prepares matters relating to the

Group CEO's remuneration for the board. In addition, the committee deals with fundamental questions and guidelines linked to the remuneration of the rest of the Group management and senior managers in key subsidiaries. This work includes questions linked to salaries, variable pay and other incentive schemes, termination payment schemes and pension schemes. These guidelines form the basis for the Group's management remuneration policy.

In addition, the Compensation Committee discusses issues linked to the succession to key positions in the Group.

The Group CEO attends committee meetings unless his own remuneration is to be discussed. The company's legal director carries out the secretariat function for the Compensation Committee.

The Compensation Committee's mandate is published on Schibsted's website.

An overview of the prevailing guidelines relating to compensation is stated in the board's management remuneration declaration.

THE GROUP BOARD'S AUDIT COMMITTEE

The Audit Committee is elected by the board for one year at a time. The Audit Committee prepares the board's quality assurance of the financial reports. In addition, the committee checks whether the company's internal control system and risk management systems function efficiently and monitors the statutory audit of the annual financial statements and the auditor's independence.

The Group's CFO and external auditor attend Audit Committee meetings on a regular basis. The Group controller's task is work on internal control, report to the CFO. If necessary, the Group controller reports directly to the Audit Committee.

The Audit Committee's mandate is published on Schibsted's website.

RISK MANAGEMENT AND INTERNAL CONTROLS

The Audit Committee's special responsibility is to monitor the process prior to the closing of the accounts and to follow up the internal controls linked to financial reporting. This takes place through reports from the management and external auditor.

Schibsted ASA is a Norwegian group of companies with considerable international interests. Companies outside Norway have their own governing bodies in accordance with the local legislation in each individual country. The internal controls linked to financial reporting are monitored by these governing bodies with assistance from the management's day-to-day follow-up work and the external auditor's tests.

In order to further increase the focus on risk management and internal controls, Schibsted is implementing more detailed guidelines for all the companies regarding their continuous follow-up of risk management and internal control of financial reporting.

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SCHIBSTED ANNUAL REPORT 2009

AUDIT COMMITTEE

Monica CANEMAN
Christian RINGNES
Carl-Christian. AGERUP

THE ANNUAL EVALUATION OF THE BOARD'S WORK

At the year-end, the Group board evaluates its own work and way of working. This forms the basis for the Nomination Committee's annual board evaluation work.

The Group board considers itself to be well functioning, with directors whose expertise and backgrounds complement each other. The fact that the board now has fewer directors has led to better and more open discussions. It has also helped to make each director's responsibilities clear and led to each director becoming more actively involved in the discussions. The frequency and location of the board meetings function well. In 2009, eight ordinary meetings were held, including the strategy meeting which lasted for two days and encompassed a visit to a company. In addition, two extraordinary meetings were held.

Meetings that are not listed on the meeting schedule may be attended by telephone. Directors may also attend meetings by telephone if there are other good reasons for this.

The board portal simplifies the board work and makes it more efficient, and gives the board easier access to up-to-date information. It also allows the directors to study presentations given at meetings, framework conditions and the industry's market and competitive situation, etc.

THE BOARD'S INDEPENDENCE

The board of Blommenholm Industrier, Schibsted's largest shareholder, consists of John A. Rein (chairman of the board), Ole Jacob Sunde and Per Egil Hegge. Ole Jacob Sunde is the chairman of Schibsted ASA's board.

The Tinius Trust controls Blommenholm Industrier. The board of the Tinius Trust consists of Ole Jacob Sunde (chairman), John A. Rein and Per Egil Hegge. Schibsted director Karl-Christian Agerup has been elected as the personal alternate director for Ole Jacob Sunde in the Tinius Trust. John A. Rein is a director of Verdens Gang (VG).

For further information on the Trust, refer to "our responsibilities", Schibsted's website, the Trust's own annual report or the Trust's website, www.tinius.com.

Formuesforvaltning, of which Ole Jacob Sunde is a major shareholder, has a management agreement with Blommenholm Industrier.

Christian Ringnes controls the company which leases Eesti Meedia's head office in Tallinn to Schibsted.

The board complies with the requirements stipulated in the Recommendation Regarding Independence. Refer to the Nomination Committee's report for further information on this.

THE NOMINATION COMMITTEE

The Nomination Committee is elected by the General Meeting for two years at a time. The General Meeting elects the chair of the Nomination Committee. The Nomination Committee's mandate is mainly stated in §10 of Schibsted's Articles of Association. The Nomination Committee's most important task is to ensure that the board's overall expertise and experience is continuously evaluated in relation to the challenges facing the Group at any time.

The Group CEO and chairman of the board attend Nomination Committee meetings as required, normally once or twice a year. Schibsted's legal director carries out the secretariat function for the Nomination Committee.

SCHIBSTED'S GROUP COUNCIL

Schibsted's Group Council was established in 2004, based on the regulations governing the Establishment of European Works Councils.

The purpose of the Group Council is to promote development, motivation, co-responsibility and mutual trust between the management and employees. The Council is to ensure active cooperation and be a forum for information, discussion and dialogue within the Group. It cooperates closely with the two Group employee representatives and is a supplement to the employees' representation in their own companies.

A further presentation of the Group Council is given on page 23 of the annual report.

AUDIT

Ernst & Young is Schibsted ASA's auditor. The company's auditor is present when the preliminary consolidated financial statements are submitted to the Group's board by the management and sometimes also in connection with the final presentation of the financial statements. The auditor also regularly attends Audit Committee meetings.

At the board meetings, the auditor reviews the issues that have been assessed during the year and answers questions from the board. The auditor is also present at the company's General Meeting and comments on the auditor's report.

The total auditors' fee paid by the Group to Ernst & Young for the mandatory audit amounted to NOK 12.0 million in 2009, of which NOK 1.0 million relates to Schibsted ASA. Other services provided by Ernst & Young are invoiced separately and in 2009 these amounted to NOK 4.8 million for the Group and NOK 1.7 million for Schibsted ASA. This assistance was mainly linked to work on the capital increase, questions relating to taxation and charges and the necessary auditor's confirmations in connection with corporate changes in the Group.

Some of the Group's subsidiaries use other auditing firms. The total auditors' fees paid to these firms amounted to NOK 6.5 million in 2009, of which NOK 4.3 million related to mandatory audits. Otherwise refer to note 11 to the consolidated accounts, where the extent of these services is described in greater detail.

In the board's opinion, the consulting services provided by Ernst & Young and other auditing firms do not affect the auditor's independence, but the board is aware of the problems that may be linked to this. This issue is also being monitored by the Audit Committee.

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SCHIBSTED ANNUAL REPORT 2009

THE NOMINATION COMMITTEE'S REPORT

The Nomination Committee consists of Lars A. Christensen (chairman), Gunn Wærsted and Nils Bastiansen.

The Nomination Committee is elected for a two-year term of office and is up for election at this year's Annual General Meeting.

The Nomination Committee's members are all willing to be re-elected. In a letter dated 8 January 2010, the company's largest shareholders were asked to propose candidates for the Nomination Committee and state their views on the Nomination Committee's work. The Nomination Committee has taken these views into account in its work.

THE COMPOSITION OF THE GROUP BOARD

The Board consists of eight directors: six shareholder-elected directors and two directors elected from among the employees of the Group's Norwegian companies. No alternate directors have been elected for the shareholder-elected directors. In accordance with the representation agreement, the employees have elected four alternate directors. The members of the Board are presented on pages 14-15.

ELECTION OF SHAREHOLDER-ELECTED DIRECTORS AND ALTERNATE DIRECTORS

The Board's shareholder-elected directors and alternate directors are up for election each year. The Nomination Committee is therefore continuously working on the recruitment of new members to the Board and evaluating the Board's work.

In a letter dated 8 January 2010, the company's largest shareholders were asked to state their views on the Board's composition and whether they wished to propose any candidates. The Nomination Committee has taken these views into account in its work.

The Nomination Committee makes efforts to ensure that recruitment to Schibsted's Board has a sufficient balance between considerations of continuity and renewal and that the Board as a whole has expertise in and experience of the Group's operations both in and outside Scandinavia. In addition, the Norwegian Public Limited Companies Act's gender balance requirements must be complied with. In its assessment of the Board, the Nomination Committee has taken the Board's evaluation of its own work into account and has had individual talks with the shareholder-elected directors

The Nomination Committee's nominations for shareholder-elected directors are stated on the notice of the Annual General Meeting. A further presentation of the candidates is enclosed with the notice and is also published on Schibsted's website.

The Nomination Committee has considered whether there should be a ballot for each individual director instead of for the entire Board. Such a solution is advised in item 6 of the Norwegian Recommendations. Some shareholders have also pointed this out to the Board and Nomination Committee. The Nomination Committee believes that the Board should be elected as one body because the individual's

expertise and experience must be seen in connection with the Board's overall expertise and requirements. In addition, the requirement of a gender balance on the Board makes voting on each individual candidate difficult. The General Meeting must decide whether there is to be a ballot for each individual director or for the Board as a whole. Among other things, this will be affected by whether candidates for the Board are proposed in addition to those proposed by the Nomination Committee.

THE DIRECTORS' INDEPENDENCE

Information on the directors' business relationships with shareholders or others with links to these or with Schibsted is stated under "Corporate Governance". The representation on the Group Board reflects the ownership shares in Schibsted and the right to elect directors which, according to Schibsted's Articles of Association, belongs to shareholders that own more than 25 per cent of the shares. The Nomination Committee is of the opinion that Ole Jacob Sunde's links with Blommenholm Industrier and the Tinius Trust and Karl-Christian Agerup's links with the Tinius Trust, in that he has been chosen as Ole Jacob Sunde's personal alternate member, mean that these two, in relation to this assessment, are not considered to be independent directors. The Nomination Committee considers the other directors to be independent, so that four of the six shareholder-elected directors are regarded as being independent.

The chairman of the board, Ole Jacob Sunde, and Monica Caneman, a director, have provided consultancy services to the company and have been paid separately for this. These fees are stated in note 34 to the financial statements. To safeguard the Board's independence, the Nomination Committee is of the opinion that directors should not as a rule carry out separate assignments for the management.

GROUP BOARD MEMBERS' DIRECTORSHIPS OF SUBSIDIARIES

The Nomination Committee is aware that some of the Group Board's members are also on the boards of the Group's subsidiaries. The Nomination Committee does not believe that the Group Board directors' membership of subsidiaries' boards weakens their independence as Group Board directors. When considering this practice, the Nomination Committee has also placed emphasis on the fact that the majority of the subsidiaries' directors are not members of the Group Board. The Nomination Committee therefore considers this practice to be useful when key issues are to be discussed, and has no objections to it continuing.

THE GROUP BOARD'S COMPENSATION COMMITTEE AND AUDIT COMMITTEE

The Group Board's Compensation Committee and Audit Committee are bodies that prepare issues for the Group Board. The committees' mandates are published on Schibsted's website.

In the Board's evaluation of its own work, the committees' work is pointed out as being positive and important when complicated issues within the committees' areas of work are to be discussed by the Group Board. The Nomination Committee sees the need for the

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SCHIBSTED ANNUAL REPORT 2009

Group Board to be able to prepare complicated issues in committees, but also underlines the Board's overall responsibility for the assessments and decisions made, including those relating to the issues prepared by the committees. The Nomination Committee wishes to draw attention to this matter since it makes demands on how the committees prepare and present the issues to the Group Board.

FEES

In 2008, the Nomination Committee stated that the fees should normally be adjusted annually in order to achieve a more steady increase in the fees and follow the general wage growth in society. For the 2008-2009 period, all the fees were adjusted slightly in line with this. The Group's special situation in 2009 meant that no fees were adjusted for the 2009-2010 period. In order to ensure that the Group's fee level sufficiently reflects the increasing volume of work and responsibilities which accompany the directorship and also ensure the recruitment of the right directors, including internationally, the Nomination Committee proposes increasing the directors' and committee members' fees by more than the general wage growth would indicate. At the same time, the Nomination Committee proposes removing the basic fee of NOK 35,000 payable to the directors' alternate members.

The Nomination Committee assumes that the directors prioritise board work and that it is only in extraordinary cases that a director will be unable to attend a board meeting. This is also the reason why the Nomination Committee has not proposed electing alternate members for the shareholder-elected directors during the past few years, and why the Nomination Committee is proposing to remove the basic fee payable to the alternate members. The Nomination Committee also notes that it has been very rare for a director to be unable to attend a board meeting.

The proposed fees payable to the members of the Group Board, Audit Committee, Compensation Committee and Nomination Committee for the 2010-2011 period are stated on the notice of the General Meeting.

DETERMINATION AND PAYMENT OF FEES

All the fees payable to Schibsted's corporate bodies are determined in advance for one year at a time at the Annual General Meeting and are paid at the end of the term of office. The fees determined at the General Meeting on 12 May 2010 will thus apply to the period from May 2010 – May 2011. The fees for the term of office from May 2009 – May 2010 were determined by the General Meeting in May 2009 and will be paid in May 2010.

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Board of director's report

Schibsted is a Scandinavian media group headquartered in Oslo. Although most of its activities are linked to Norway and Sweden, the Group has operations in 26 countries.

BOARD OF DIRECTORS' REPORT

Schibsted aims to be the most attractive media group in Europe.

The Group has two strategic axes. One is the strong media houses in its core markets. These media houses have sound positions and strong brands in various channels, especially printed and online but also web-TV and mobile phone channels. Schibsted will continue to strengthen its media houses' positions and further develop products in old and new channels while striving to run the media houses as efficiently as possible.

Schibsted's other strategic axis is its position as one of Europe's leading companies in the field of online marketplaces and classified ads services. Schibsted has market-leading and profitable operations in a number of categories in Norway, Sweden, Spain and France. Based on successful concepts in Schibsted's core markets, online classified ads services have been established in several countries, including outside the core markets. Schibsted is continuing to grow the online classified ads segment by both developing new revenue flows for existing companies and rolling out established concepts in new markets.

In order to help achieve these strategic goals, Schibsted is systematically mapping and further developing the expertise in all its companies. Management development, continuous improvements, sales and market insight are all key elements in the Group's competence-development work.

Schibsted considerably strengthened its market positions and improved its earnings in 2009. The Group's online classified ads services continued to grow and be profitable, even in a year of financial crisis. The media houses have strong positions in the printing and online markets and the continued further development of online and printed media led to them strengthening these positions in 2009.

2009 ended on a high note. The fourth quarter produced the Group's best ever operating profit before impairment loss and other revenues and expenses.

Highlights in 2009:

• The printed newspapers' revenues fell sharply towards the end of 2008. The weak economic conditions continued to have a negative effect on the Group's advertising revenues in 2009.
• In the autumn of 2008, Schibsted increased its work on profitability improvement measures and on a new, extensive profitability programme intended to produce savings of NOK 1 billion in 2009. The successful implementation of this programme resulted in an effect of NOK 1.2 billion on the operating profit before impairment loss and other revenues and expenses. Additional improvements are aimed for in 2010 and 2011.
• The work on measures to free up capital was further intensified in 2009. Companies such as Metronome, Basefarm, Retriever and Teleadress Information that were defined as being outside the core activities were sold.

• Due to the uncertainty in the markets and to ensure financial flexibility, Schibsted chose to carry out a rights issue in July 2009. New equity of NOK 1.3 billion was raised. The share issue amount minus share issue costs was used to repay debt.

• The Group's financial flexibility at the year-end is considered to be very good compared to the target range for the debt-equity ratio.

• The Group achieved an operating profit of NOK 832 million (766 million) before impairment loss and other revenues and expenses in 2009, equal to an operating margin of six per cent (6%).
• Organic projects debited the 2009 operating profit before impairment loss and other revenues and expenses by NOK 135 million (272 million).
• The Board proposes paying dividend for the 2009 financial year of NOK 1.50 (0.00) per share.
• Media Norge was established on 25 June 2009. This group comprises the Aftenposten, Bergens Tidende, Fædrelandsvennen and Stavanger Aftenblad media houses as well as FINN.no.
• Rolv Erik Ryssdal succeeded Kjell Aamot as Group CEO on 1 June 2009.

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SCHIBSTED ANBIAL REPORT 2009

ANALYSIS OF THE 2009 FINANCIAL STATEMENTS

Schibsted presents its consolidated financial statements in accordance with International Financial Reporting Standards that are approved by the EU (IFRS).

SCHIBSTED GROUP

(NOK million.)	2009	2008
Operating revenues	12 745	12 851
Operating expenses	(11 184)	(11 420)
Depreciation and amortisation	(662)	(592)
Operating profit before income from associated companies, impairment loss and other revenues and expenses	899	839
Income from associated companies	(67)	(73)
Operating profit before impairment loss and other revenues and expenses	832	766
Impairment loss	(161)	(1 558)
Other revenues and expenses	(236)	482
Operating profit	435	(310)

Operating revenues fell by one per cent in 2009 compared to 2008. After adjusting for acquisitions and sales of companies and currency effects, the operating revenues fell by four per cent compared to the previous year. Higher unemployment levels and frailer real estate markets as a result of the weakened real economy led to a considerable decline in the printed advertising markets. This was especially true for classified ads. For the Group as a whole, advertising revenues had an underlying fall of nine per cent from 2008 to 2009. However, the total revenues from online activities experienced underlying growth of nine per cent during the year.

The operating profit before impairment loss and other revenues and expenses rose by nine per cent from 2008 to 2009. After adjusting for the acquisition and sale of companies, currency effects and nonrecurring effects included in the income from associated companies, the operating profit before impairment loss and other revenues and expenses fell by 16 per cent.

Schibsted continued to develop its operations in 2009 but at a slower rate than before. It particularly invested in directory services, search services, free newspapers and the international expansion of classified ads services. These investments reduced the operating profit before impairment loss and other revenues and expenses by NOK 135 million (272 million) in 2009.

Schibsted's successful profitability programme produced an effect of

BOARD OF DIRECTORS OF SCHIBSTED ASA

Ole Jacob SUNDE
CHAIRMAN OF THE BOARD AND CHAIRMAN OF THE COMPENSATION COMMITTEE

Board member since May 2000. Chairman of the Board since May 2002. Chairman of the Compensation Committee since it was established in 2004.

The founder and chairman of the board of Formuesforvaltning ASA (2000). Established Industrifinans Forvaltning ASA in 1983 and was managing director until 2000. Former consultant in McKinsey & Co. (1980-83). Various other directorships, including chairman of the board of The Tinius Trust and member of the board of Blommenholm Industrier AS. MBA (Université de Fribourg, Swits) 1976 and Kellogg School of Management, Northwestern University (USA) (with distinction) 1980.

Anne Lise von der FEHR
BOARD MEMBER
REPRESENTING THE EMPLOYEES

Reporter at VG since April 2002, first in the department of politics, now the department for consumers' interests. Worked several periods as a subeditor. Elected leader of the board of the local journalist union in VG 2007. Member of the European Work Council, Schibsted (2008-). Leader of Norwegian Journalists' local union within Schibsted (2008-). Deputy member of the board of VG AS (2007-2009). Reporter and subeditor Asker og Bærum Budstikke (2000-2002). Researcher at Holmgang, TV2 (1999-2000). Board member of the Foundation of Asker and Bærum Budstikke (2009-), deputy member (2007-2009). Deputy member to the board of Universitas (2008-). She holds a masters degree in Political Science from the University of Oslo, has studied History of Literature and has an International Diploma in Journalism from England.

Marie EHRLING
BOARD MEMBER AND MEMBER OF THE COMPENSATION COMMITTEE

Board member in Schibsted since May 2008. Member of the Compensation Committee from May 2008. Board member in Nordea AB, Securitas AB, Loomis AB, Oriflame Cosmetics SA, Safegate AB, Centre for Advanced Studies of Leadership (CASL) at the Stockholm School of Business and Administration, Business Executive Council IVA and for the World Childhood Foundation. Marie Ehrling was CEO of TeliaSonera AB from 2003 to 2006. From 1982 until 2002 she worked for the SAS Group, among others as Vice CEO in SAS AB and CEO for SAS Scandinavian Airlines (2001-2002) and as CEO for SAS Ground Services (1997-2001). Head of Information at the Swedish Ministry of Finance (1980-til 1982) and the Swedish Ministry of Education (1979-1980), Financial Analystist in Fourth Swedish National Pension Fund (1977-1979). Bachelor of Science Business Administration and Economics from Stockholm School of Business and Administration (1977).

Eva LINDQUIST
BOARD MEMBER AND MEMBER OF THE COMPENSATION COMMITTEE

Board Member since May 2006.

Former Senior Vice President Mobile Business in TeliaSonera, President and Head of Business Area TeliaSonera International Carrier, Senior Vice President and Head of Business Area Telia Equity, Managing Partner Sandberg Trygg, various positions in Ericsson during 1981-1999. Chairman of the board in Xelerated AB and in Admeta AB, and board member in Assa Abloy AB, Niscayah AB, Birdstep ASA, Transmode AB, and Nordia Innovation AB. MBA, Melbourne University, Australia (1992). MSc, Linköping University (1981).

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SCHIBSTED ANNUAL REPORT 2009

NOK 1.2 billion in 2009. This is more than the estimated NOK 1 billion and is due, among other things, to measures being implemented more quickly.

Income from associated companies includes a charge of NOK 47 million linked to restructuring costs in Stavanger Aftenblad, Bergens Tidende and Fædrelandsvennen during the first half of 2009.

The 2009 financial statements include impairment losses of NOK 161 million (1.6 billion).

Other revenues and expenses in 2009 consist of a net gain of NOK 83 million on the sale of companies (including Teleadress Information, Retriever and Basefarm) and restructuring costs of NOK 319 million, most of which are linked to the profitability programme.

THE BALANCE SHEET

At the close of 2009, the Group had total balance sheet assets of NOK 15.2 billion (16.4 billion). Non-current assets constitute the largest component at NOK 10.9 billion (12.7 billion). The carrying amount of the Group's goodwill and other intangible assets is NOK 7.2 billion (7.6 billion).

In connection with preparing the 2009 financial statements, Schibsted has impaired the value of the intangible assets and goodwill in its balance sheet. Goodwill has been written down by NOK 80 million (1.4 billion) in 2009, while intangible assets have been written down by NOK 58 million (170 million).

The carrying amount of investments in shares and associated companies is NOK 628 million (2.9 billion). The reduction compared to 2008 is mainly due to the formation of the Media Norge Group, when Stavanger Aftenblad, Bergens Tidende and Fædrelandsvennen were converted from associated companies into subsidiaries.

In 2009, the Group invested NOK 196 million (1.0 billion) in shares and NOK 390 million (603 million) in tangible fixed assets and intangible assets. In addition, it paid EUR 67 million relating to the increase in Schibsted's shareholding in Infojobs.net.

The carrying amount of the Group's total assets fell by NOK 1.2 billion to NOK 15.2 billion in 2009. The total assets increased due to the formation of Media Norge, but the stronger Norwegian krone had the opposite effect. The formation of Media Norge also contributed to an increase in the total liabilities, but the effect was counteracted by the stronger Norwegian krone and the repayment of debt.

Carl-Dristian AGERUP

BOARD MEMBER AND MEMBER OF THE AUDIT COMMITTEE

Elected as a deputy board member in Schibsted in May 2004. Board member since May 2008.

Forskningsparken AS, Managing director (2010 - d.d.). Northzone Ventures, Founder and partner (1994-2009). HUGIN AS, Founder and managing director (1995-1999). McKinsey & Co, Associate (1991-93), Engagement Manager (1993-94). Millipore Corp, Boston, USA, Corporate Planner (1990-91). Vice Chairman of the board of Norfund. Massachusetts Institute of Technology (MIT) – Alfred P Sloan School of Management, Master of Science in Management (1990). The Copenhagen School of Business and Administration. MBA/HA (1988). Personal deputy for Ole Jacob Sunde in the Tinius Trust.

Christian RINGNES

BOARD MEMBER AND MEMBER OF THE AUDIT COMMITTEE

Deputy board member in Schibsted from May 2002 to 2005. Elected as ordinary board member in May 2005. Member of the Audit Committee since it was established in 2007. Managing director and major owner in Eiendomsspar AS/Victoria Eiendom AS (1984-1. McKinsey & Company, INC - Scandinavia, consultant (1981/82) and project manager (1983/84), Manufactures Hanover Trust Company, Assistant to Area Manager, Nordic Countries (1978/79). Chairman of the board in NSV-Invest AS, Sundt AS, Dermanor AS and Mini Bottle Gallery AS. Board member in Thor Corporating AS and Oslo's Council for City Architecture. Harvard Business School, Boston, USA (1979-81), Master of Business Administration. Ecole des Hautes Estudes Commerciales, Universite de Lausanne (1975-78), MBA.

Gunnar KAGGE

BOARD MEMBER REPRESENTING THE EMPLOYEES

Gunnar Kagge has worked at Aftenposten since 1997. Formerly employed at NTB and the Norwegian Confederation of Business and Industry (NHO). He has mainly been writing about politics and economy, covering negotiations between employers and unions, trends in the workplace and the big organizations. He was elected leader of the local journalist union in 2007, a full time position. He is educated with a degree in history from the University of Oslo. All through school and studies he worked as a freelancer at Aftenposten, from 1975 and onwards.

Monica CANEMAN

BOARD MEMBER AND CHAIRMAN OF THE AUDIT COMMITTEE

Board member in Schibsted since May 2003. Chairman of the Audit Committee since it was established in 2007.

Former vice CEO of SE-Banken (1997-2001), employed in SE-Banken from 1977. Chairman of the board in Linkmed AB, Point Scandinavia AB, SOS International AS and Fjärde APFonden. Board member in SJ AB (Statens Järnvägar), Poolia AB, Orexo AB, Investment AB Öresund, Schibsted Sverige AB and Securia AB. Educated at the Stockholm School of Business and Administration (1976).

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SCHIBSTED ANNUAL REPORT 2009

In 2009, Schibsted repurchased 39,500 of its own shares. It did not sell any of its own shares during the period. The repurchase of own shares was related to Schibsted shares that were owned by Bergens Tidende when Media Norge was established. Schibsted ASA owned 4,700,141 own shares at the year-end, equivalent to 4.4 per cent of the shares issued.

Due to the uncertainty in the advertising markets and to ensure further growth for the Schibsted Group, a rights issue was carried out in July 2009. This issue was over-subscribed by 40 per cent and raised NOK 1.3 billion in new equity for Schibsted. The share issue amount minus the issue costs was used to repay interest-bearing debt.

Net interest-bearing debt was reduced to NOK 2.5 billion at the end of 2009, compared to NOK 5.4 billion at the end of 2008. At the end of 2009, Schibsted had two loan facilities that fall due at the end of 2011. One of these has a borrowing framework of EUR 250 million, while the other has a borrowing framework of EUR 375 million (originally EUR 500 million). Schibsted also has long-term loans from the Nordic Investment Bank. Most of the Group's financing is thus long-term.

During the year, the Euro share of the Group's debt fell to around 50%. In addition to EUR and NOK, the Group has interest-bearing debt and forward contracts in SEK and EEK. The currency composition of the debt is balanced in relation to the Group's cash flows. Future exchange rate fluctuations will therefore to a lesser extent than before affect the net interest-bearing debt compared to the operating profit before depreciation, amortisation, impairment loss and other revenues and expenses (EBITDA).

CASH FLOWS

The net cash flow from operating activities totalled NOK 933 million (757 million) in 2009. Stronger developments in ordinary operations at the year-end contributed to this increase.

The net cash flow from investing activities was NOK 148 million. In 2009, the Group sold shares for NOK 1,168 million. During the same period, NOK 390 million (603 million) was invested in tangible fixed assets and intangible assets while NOK 196 million (1,001 million) was invested in shares.

The net cash flow from financing activities was NOK -573 million in 2009. The effect of the rights issue in July 2009 was counteracted by the reduction in interest-bearing debt.

RISK ANALYSIS

MARKET RISK

Schibsted's advertising revenues depend to a large extent on developments in real economy figures such as GDP growth and unemployment. Advertising revenues came to 50 per cent (53%) of the total revenues in 2009. Weak economic conditions continued to have a negative effect on the Group's advertising revenues in 2009. Most affected by these were Aftenposten and the regional newspapers, which have a considerable share of their advertising revenues from the recruitment and real estate markets, as well as InfoJobs, whose advertising revenues come from the recruitment market.

Macro-economic forecasts in the market indicate a certain levelling out or growth during the coming quarters but there are considerable variations between the markets. Online media are also affected by the economic slump – primarily online newspapers and recruitment websites. Other classified ads websites are less affected. The online media are expected to continue strengthening their relative position.

Although Schibsted's basic currency is the Norwegian krone (NOK), its operations outside Norway mean that the Group is also exposed to fluctuations in the exchange rates of other currencies, mainly the Euro, Swedish krone (SEK) and Estonian krone (EEK). Schibsted has currency risks linked to both balance sheet monetary items and the translation of investments in foreign operations. The Group makes use of loans in foreign currencies and forward contracts to reduce its currency risk. The loans in foreign currencies and forward contracts are managed actively in accordance with the Group's strategy in order to reduce the currency risk.

Virtually all of the Group's debt as at 31 December 2009 had a variable interest rate, and the Group's debt is affected by changes in interest rate markets. A change of 1 percentage point in the floating interest rates increases or decreases Schibsted's interest expenses by approx. NOK 30 million. A significant proportion of the Group's revenues are advertising revenues, which makes the company sensitive to changes in economic conditions. Normally Schibsted will therefore be highly profitable in periods of prosperity (allowing it to cope with higher interest rates) and less profitable during economic slumps (when it benefits from lower interest rates).

Schibsted uses newsprint and is therefore exposed to price changes in the paper market. A 1 per cent change in price alters the Group's raw materials costs by around NOK 8 million per annum. This is more than in previous years as a result of the total raw materials used by the Group increasing following the formation of Media Norge. The price of newsprint in Norway, Sweden and Spain is negotiated with suppliers each year and is already fixed for 2010.

At the end of 2009, the Group had limited exposure to the stock market and therefore less risk of losses.

Since many of the Group's products are sold on the basis of advance payments (subscription sales) or cash payments (single-copy sales), there is little credit risk associated with the Group's circulation revenues. Deposit schemes and credit insurances have been established for much of the Group's advertising revenues. A lot of the private online ads are paid for by credit card when the ad is ordered.

LIQUIDITY

At the end of 2009, Schibsted had two credit facilities, which mature

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SCHIBSTED ANNUAL REPORT 2009

at the end of 2011. The total borrowing limit for the facilities was originally EUR 750 million but Schibsted reduced one of the loan facilities by EUR 125 million in the autumn of 2009. The total borrowing limit was therefore EUR 625 million at the year-end. The refinancing of the facilities is planned to be completed by the end of 2010. In this context, emphasis will be placed on achieving a more diversified due-date structure and other sources of capital will be considered. In addition, Schibsted has long-term loans from the Nordic Investment Bank (NIB).

At the beginning of 2009, Schibsted had net interest-bearing debt of NOK 5,390 million. The increase in interest-bearing debt at the end of 2008 was reinforced by the weak NOK at the year-end. At the same time, the company seriously noticed the effect of the economic downturn in its markets.

During 2009, Schibsted reduced its net interest-bearing debt to NOK 2,554 million. Measures to improve profitability combined with the rights issue and sale of assets enabled this reduction in debt. The stronger NOK also helped to reduce the net interest-bearing debt. The ratio of net interest-bearing debt (NIBD) to EBITDA was 1.7 at the end of 2009, and is well within the covenant set for the company's loans and the Group's financial target figure. The Group's financial flexibility is considered to be very good and within the defined interval for the debt ratio.

Schibsted's long-term financing is intended to ensure that the Group has sufficient financial flexibility. Schibsted aims for its total liquidity reserve to be at least around 10 per cent of the next 12 months' estimated revenue.

At the end of 2009, Schibsted had a long-term liquidity reserve of approximately NOK 3.4 billion, equivalent to around 26 per cent of its revenues for 2009.

ORGANIC GROWTH PROJECTS

Schibsted's organic growth projects are investments in new companies and future growth. They do not meet the criteria for R&D projects in an accounting sense and are therefore not capitalised. The organic growth projects are intended to strengthen the Group's position and support the Group's vision of being the most attractive media group in Europe. The projects are primarily aimed at new markets or the development of products that the Group has not previously been involved in. These projects are characterised by a short development phase and active marketing to develop positions in the market.

Organic growth projects reduced the 2009 operating profit before impairment loss and other revenues and expenses by NOK 135 million (272 million). The largest projects were:

• The international expansion of classified ads (Subito.it, CustoJusto. pt, Mudah.my, Willhaben.at, AggelioPolis.gr, Ayosdito.ph)

• Search and directory services in Norway and Sweden (Sesam and the Sesam directory)

• Editorial products (the free newspapers 15 minuciu in Lithuania and E24.fr in France)

Future organic growth will particularly take place in Schibsted Classified Media.

THE PROFITABILITY PROGRAMME

At the end of 2008, the Group Board decided to implement a NOK 1 billion profitability programme. This programme was successful and carried out as planned and produced an effect of NOK 1.2 billion, including further measures that were not part of the original profitability programme.

The profitability programme included several types of measures and affected the entire Group. It included:

• A significant reduction in the number of employees. This has been done by using severance packages, hiring freezes and contractually agreed early retirement pensions and by closing down or selling operations, among other measures.
• A higher sales price for some products and other product-related adjustments.
• The reduction or winding up of products.
• The sale or closure of operations.
• A reduction in the variable costs through changes to the distribution and circulation of free newspapers as well as smaller formats.
• A reduction in general costs such as marketing, travel and meeting expenses and the cost of external consultants.

A total of 800 employees were affected by the profitability programme in the form of downsizing in 2009. Including the downsizing carried out in Q4 2008, the profitability programme has led to around 1,240 fewer employees.

Restructuring costs of NOK 256 million linked to the profitability programme debited the 2009 financial statements as other revenues and expenses. In addition, regional newspapers that were owned as associates in the first half of 2009 incurred restructuring costs of NOK 83 million.

BUSINESS AREA ANALYSIS – NORWAY, SWEDEN AND INTERNATIONAL

BUSINESS AREA NORWAY

(NOK million)	2009	2008
Operating revenues	6 499	6 034
Operating expenses	(5 470)	(5 055)
Depreciation and amortisation	(289)	(244)
Operating profit before income from associated companies, impairment loss and other revenues and expenses	740	735
Income from associated companies	(80)	13
Operating profit before impairment loss and other revenues and expenses	660	748
Impairment loss	(83)	(12)
Other revenues and expenses	(76)	777
Operating profit	501	1 513

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SCHIBITED ANNUAL REPORT 2009

Business Area Norway had operating revenues of NOK 6.50 billion in 2009, 8 per cent more than in 2008. The inclusion of Media Norge in the consolidated accounts as from the 2nd half-year 2009 was the main reason for the increase. Underlying this, increased circulation revenues in Media Norge and VG had a positive impact, as did Finn. no's advertising revenues. Lower advertising revenues from both printed and certain online newspapers had a negative impact. Business Area Norway's 2009 operating profit before impairment loss and other revenues and expenses came to NOK 660 million (748 million).

MEDIA NORGE

Media Norge was established on 25 June 2009. This group comprises the Aftenposten, Bergens Tidende, Fædrelandsvennen and Stavanger Aftenblad media houses as wholly owned subsidiaries, as well as FINN.no (50.01%). Schibsted is currently Media Norge's largest shareholder, with an 80.4 per cent stake. Schibsted also directly owns 39.9 per cent of the shares in FINN.no.

Before the formation of Media Norge, Aftenposten and FINN.no were subsidiaries of the Schibsted Group in which Schibsted held a 100 per cent and 62 per cent stake respectively. Bergens Tidende, Fædrelandsvennen and Stavanger Aftenblad were associated companies in which Schibsted owned 52.8 per cent, 25 per cent and 94.3 per cent respectively.

THE AFTENPOSTEN MEDIA HOUSE

2009 was characterised by ambitious and targeted work to improve profitability. The sharp fall in advertising revenues in the autumn of 2008 continued in 2009 and was met by, among other things, considerable cost cuts. The printed edition's advertising revenues fell by 25 per cent in 2009 compared to 2008. The real estate and recruitment advertising markets were the hardest hit. At the end of 2009, the advertising revenues were still considerably affected by weak markets but the decline was less noticeable than at the beginning of the year.

The morning edition's circulation fell by two per cent (4,020 copies) compared to 2008. The evening edition, which was reduced from five to three editions a week as from May, saw an 11 per cent decline in its circulation (13,695 copies). The Sunday edition's circulation dropped by one per cent (3,086 copies). The printed edition's circulation revenues increased by six per cent compared to 2008 as a result of an increase in the subscription prices.

The printed edition's total operating expenses fell sharply as a result of the extensive profitability programme. The total operating expenses fell by 14 per cent in 2009 compared to 2008.

FINN

FINN's operating revenues increased by seven per cent (20%) in 2009. As from 1 July 2009, Schibsted Søk's Norwegian activities were integrated into FINN's operations and accounting figures. FINN achieved an operating margin of 40 per cent (43%). FINN was also affected by the weaker economic conditions at the beginning of the year but ended 2009 with good results. Only FINN's recruitment advertising had operating revenues that were lower than in 2008. For 2009 as a whole, the growth in the revenues was as follows: Recruitment -16 per cent (15%), Real Estate 8 per cent (18%), Cars 18 per cent (25%), Travel 32 per cent (91%) and Miscellaneous Advertisements 35 per cent (19%).

THE BERGENS TIDENDE MEDIA HOUSE

The advertising revenues of the printed newspapers in the Bergens Tidende media house fell by 18 per cent in 2009 compared to 2008. The circulation revenues rose by four per cent despite the circulation declining by three per cent on weekdays (2,740 copies) and Sundays (2,399 copies). The circulation revenues improved as a result of price increases. In 2009, this media house underwent considerable changes that involved a strong focus on cost-cutting measures. The operating expenses were reduced by five per cent compared to 2008.

THE STAVANGER AFTENBLAD MEDIA HOUSE

The advertising revenues of the Stavanger Aftenblad printed newspaper fell by 26 per cent in 2009 compared to 2008. The circulation revenues rose by 12 per cent despite the circulation falling by two per cent (1,046 copies). The circulation revenues improved as a result of price increases. In 2009, this media house underwent considerable changes that involved a strong focus on cost-cutting measures. The operating expenses were reduced by nine per cent compared to 2008.

THE FÆDRELANDSVENNEN MEDIA HOUSE

The advertising revenues of the Fædrelandsvennen printed newspaper fell by 15 per cent in 2009 compared to 2008. The circulation revenues rose by three per cent despite the circulation falling by three per cent (1,275 copies). The circulation revenues improved as a result of price increases. This media house carried out a restructuring project in 2009 which has lowered its cost base by three per cent.

VERDENS GANG MEDIA HOUSE

(NOK million)	2009	2008
Operating revenues	1 961	1 985
of which print	1 645	1 653
of which VG Multimedia	305	310
Operating profit before income from associated companies, impairment loss and other revenues and expenses	323	326
of which print	255	214
of which VG Multimedia	69	109

The advertising revenues of the VG printed newspaper fell by 15 per cent (+2%) in 2009 compared to 2008. The volume of advertisements dropped by five per cent. There was great pressure on prices in the market in 2009. The circulation revenues rose by five per cent (-1%) despite the circulation falling by almost eight per cent on both weekdays (22,040 copies) and Sundays (18,915 copies). The circulation revenues improved as a result of single-copy price increases. The newspa

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SCHIBSTED ANNUAL REPORT 2009

per has reduced its costs through the profitability programme and its operating profit increased by 19 per cent (-11%) compared to 2008.

The revenues of VG Multimedia including Nettby fell by two per cent (+11%) compared to 2008. The advertising revenues dropped by seven per cent during the period. The operating profit was cut by 37 per cent. The reduction in operating profit was due to the decline in revenues and increased costs linked to the focus on football. The operating margin came to 23 per cent (35%) in 2009.

BUSINESS AREA SWEDEN

(NOK million)	2009	2008
Operating revenues	3 692	3 866
Operating expenses	(3 416)	(3 603)
Depreciation and amortisation	(147)	(133)
Operating profit before income from associated companies, impairment loss and other revenues and expenses	129	130
Income from associated companies	14	(72)
Operating profit before impairment loss and other revenues and expenses	143	58
Impairment loss	(50)	(228)
Other revenues and expenses	(99)	(80)
Operating profit	(6)	(250)

Business Area Sweden's operating revenues were NOK 3.69 billion in 2009, a reduction of 4.5 per cent compared to 2008. Hitta.se made the biggest positive contribution. Aftonbladet and Svenska Dagbladet made a negative contribution to the growth as a result of weak advertising markets and a decline in Aftonbladet's circulation. The sale of operations in 2009 also contributed to the reduction. Business Area Sweden made an operating profit before impairment loss and other revenues and expenses of NOK 143 million (58 million).

SCHIBSTED SVERIGE

Most of Schibsted's operations in Sweden were gathered into one holding company, Schibsted Sverige AB, in 2009. This group consists of three units: Aftonbladet Hierta, Svenska Dagbladet and Schibsted Tillväxtmedier.

AFTONBLADET HIERTA

(SEK million)	2009	2008
Operating revenues	2 409	2 552
of which print	2 042	2 185
of which Aftonbladet Nya Medier	367	367
Operating profit before income from associated companies, impairment loss and other revenues and expenses	197	327
of which print	129	225
of which Aftonbladet Nya Medier	68	102

Schibsted's stake in Aftonbladet was changed when the Swedish Federation of Trade Unions reduced its ownership share from just over 50.01 per cent of preference shares to nine per cent of ordinary shares. Schibsted Sverige thus controls 91 per cent of Aftonbladet's shares.

The advertising revenues of the Aftonbladet printed newspaper fell by 18 per cent from 2008 to 2009 while the advertising volume increased by eight per cent. There was a strong pressure on prices in the Swedish newspaper market in 2009. Compared to 2008, the circulation fell by 19,400 copies (-5%) on weekdays and 14,800 copies (-3%) on Sundays. The circulation revenues fell by one per cent (+3%) from 2008 to 2009. Aftonbladet increased its single-copy sales price from SEK 10 to SEK 11 on 21 December. This had a limited effect in 2009 but is expected to produce SEK 70 million more in revenue in 2010 provided the circulation volume remains the same as in 2009. The operating expenses fell by two per cent in 2009 compared to 2008. The operating profit dropped by 25 per cent and the operating margin was six per cent (10%).

Aftonbladet Nya Medier achieved the same operating revenue in 2009 as in 2008. However, its advertising revenues increased by four per cent (+22%) compared to 2008. Its operating profit fell by 33 per cent while its operating margin dropped to 19 per cent (28%).

SVENSKA DAGBLADET (SVD)

(SEK million)	2009	2008
Operating revenues	1 079	1 147
of which print	1 028	1 060
of which online activities	51	87
Operating profit before income from associated companies, impairment loss and other revenues and expenses	(17)	(9)
of which print	(6)	9
of which online activities	(11)	(18)

Once again, SvD's printed newspaper's circulation figures went against the flow. The printed edition's circulation increased by 2,100 copies (1%) on weekdays and 1,100 copies (0.5%) on Sundays. The circulation revenues rose by four per cent in 2009 compared to 2008. However, SvD too saw a drop in its advertising revenues – by 12 per cent compared to 2008. The advertising volume fell by nine per cent during the same period. The company has cut its costs by two per cent so that the large decline in advertising revenues (SEK 61 million) has not had as negative an effect on the operating profit before impairment loss and other revenues and expenses.

SCHIBSTED TILLVÄXTMEDIER

(SEK million)	2009	2008
Operating revenues	621	392
of which Hitta	306	235
Operating profit before income from associated companies, impairment loss and other revenues and expenses	11	(42)
of which Hitta	51	21

Schibsted Tillväxtmedier consists of a portfolio of Internet-based growth companies. Hitta.se is by far the biggest measured by operating revenues and operating profit. In total, the operating revenues of the Tillväxtmedier companies grew by 58 per cent in 2009 compared to 2008. The operating results changed from an operating loss of SEK 42 million in 2008 to an operating profit of SEK 11 million in

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SCHIBSTED ANNUAL REPORT 2009

1. Hitta increased its operating revenues by 30 per cent from 2008 to 2009 and its operating profit rose by 243 per cent. Hitta.se's operating margin increased to 17 per cent (9%) in 2009.

BUSINESS AREA INTERNATIONAL

(NOK million)	2009	2008
Operating revenues	2 705	3 053
Operating expenses	(2 242)	(2 614)
Depreciation and amortisation	(222)	(212)
Operating profit before income from associated companies, impairment loss and other revenues and expenses	241	227
Income from associated companies	(1)	(14)
Operating profit before impairment loss and other revenues and expenses	240	213
Impairment loss	(28)	(1 318)
Other revenues and expenses	(27)	(215)
Operating profit	185	(1 320)

Business Area International had operating revenues of NOK 2.71 billion (3.05 billion) in 2009. The closure of Schibsted Classified Media's print-based operations, sale of the Italian business Secondamano and performance of 20 Minutes in Spain and France and the Baltic operations all contributed to the decline in revenues. Schibsted Classified Media's online classified ads operations grew in 2009. The operating profit (EBITA) in 2009 came to NOK 240 million (213 million). Growth and strong cost control in the online classified ads operations contributed to the improvement, as did cost cuts at 20 Minutes and in the Baltic operations.

SCHIBSTED CLASSIFIED MEDIA (SCM)

(EUR million)	2009	2008
Operating revenues	186.6	227.2
of which Blocket/Bytbil	51.8	49.5
Operating profit before income from associated companies, impairment loss and other revenues and expenses	31.5	35.6
of which Blocket/Bytbil	31.0	29.3

The formation of SCM in 2008 marked a strategic escalation and structuring of Schibsted's international expansion. 2009 was an important year, with launches in new markets, a focus on further growth in established markets and the sale of businesses that fall outside the company's strategy. Innovation and structured cooperation are important for further growth.

SCM has classified ads operations in Sweden, France, Spain, Argentina, Mexico, Brazil, Colombia, Italy, Austria, Malaysia, Belgium, Portugal, Greece, the Philippines, Indonesia and Finland. The aim is to establish the Blocket concept in new markets and strengthen established market positions. Most of the print-based operations have been wound up. During 2009, the publication of printed car ads ceased in France and Mexico. Schibsted sold the Secondamano company in Italy and its stake in Bohla in Slovenia (49.6%).

SCM's total operating revenues came to EUR 186.6 million (227.2 million) in 2009, a reduction of 18 per cent compared to 2008. Revenues from online activities increased by one per cent (20%), while revenues from the print companies fell by 76 per cent (48%). The decline for the print companies is due to the negative trend for printed publications, the closure of the printing operations in Spain, France and Mexico and the sale of the business in Italy.

The online activities are divided into online operations in an established phase and online operations in an investment phase.

Online operations in an established phase comprise the business in Sweden (Blocket/Bytbil), Spain/Latin America (Anuntis and InfoJobs) and France (LaCentrale/Caradisiac and LeBoncoin (as from Q3 2009)). These companies' operating revenues fell by a total of one per cent compared to 2008. The operating profit before depreciation, amortisation, impairment loss and other revenues and expenses fell by five per cent in 2009 compared to 2008.

The Swedish companies Blocket/Bytbil experienced growth of 16 per cent (24%) in their operating revenues in 2009 measured in local currency and a corresponding growth in their operating profit of 15 per cent (31%) before impairment loss and other revenues and expenses. Their operating margin was 59 per cent in both 2008 and 2009.

The operating revenues of Spanish recruitment portal InfoJob.net fell by 30 per cent from 2008 to 2009. This company is affected by the weak real-economy situation in Spain, where there are high levels of unemployment. That has a considerable negative effect on the volume of recruitment ads. The operating margin fell to 54 per cent (66%).

Anuntis Segundamano operates in the advertising markets for cars, real estate and "miscellaneous services". This company's revenue grew by five per cent in 2009. Its operating margin increased from 18 per cent in 2008 to 25 per cent in 2009.

French companies Car & Boat Media (LaCentrale/Caradisiac in the field of car classified ads) and the Blocket copy LeBoncoin are joint ventures in which Schibsted and SPIR own equal shares. These companies' operating revenues and operating profits grew in 2009 compared to 2008.

Online activities in the investment phase include the roll-out of the Blocket concept to 11 countries outside Sweden. These companies' operating revenues grew by 18 per cent in 2009

20 MINUTES

(EUR million)	2009	2008
Operating revenues
20 Minutes Spain (100 %)	28.2	37.3
20 Minutes France (50 %)	24.7	25.2
Operating profit before income from associated companies, impairment loss and other revenues and expenses
20 Minutes Spain (100 %)	(3.6)	(5.7)
20 Minutes France (50 %)	0.5	0.4

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SCHIBSTED ANNUAL REPORT 2009

20Minutes in France consolidated its position as France's most read newspaper in 2009, with a good gap between it and its competitors. In a difficult French advertising market, 20 Minutes increased its market share during the year. The operating revenues fell by two per cent (+11%) from 2008 to 2009. Underlying this was a flat development in the revenues during the period. The operating profit before impairment loss and other revenues and expenses grew by 29 per cent.

20Minutos in Spain experienced a 24 per cent reduction in its operating revenues in 2009 compared to 2008 (-20%). The advertising market fell in line with the general decline in the Spanish economy that started in 2007. 20Minutos had a tough year in 2009, with considerable cutbacks. Despite the fall in its operating revenues, the company improved its operating loss before impairment loss and other revenues and expenses from EUR 5.7 million in 2008 to EUR 3.6 million in 2009 as a result of the profitability programme.

BALTICS
(EEK million)
| | 2009 | 2008 |
| --- | --- | --- |
| Operating revenues | 1 069 | 1 309 |
| Operating profit before income from associated companies, impairment loss and other revenues and expenses | 22 | 27 |

The Baltic countries have been hard hit by the economic downturn in Europe. The GDP fell by around 15 per cent and advertising markets declined by all of 50 per cent in some segments. The reduction in revenue led to considerable cutbacks and restructuring processes.

Eesti Meedia is the holding company for all of Schibsted's operations in Estonia and Lithuania. This is the largest media group in Estonia and also owns the biggest TV channel (Kanal 2). Schibsted's Baltic companies' operating revenues fell by 18 per cent in 2009 compared to 2008. Advertising revenues declined by 37 per cent while circulation revenues were reduced by 11 per cent. The circulation dropped by a total of eight per cent. These companies have implemented an extensive profitability programme and cut their costs by 18 per cent, so that the decline in the operating profit was limited to 18 per cent.

Postimees is Estonia's largest newspaper. Its operating revenues fell by 16 per cent in 2009, while its advertising revenues dropped by 29 per cent and its circulation revenues increased by two per cent.

The Kroonpress printing plant produces all of Schibsted's Estonian newspapers and weekly magazines for both Estonia and Lithuania. In addition, it prints publications for the Group and external customers in Scandinavia. The revenues from printing weekly magazines are growing sharply, as is the number of orders from customers in Scandinavia and Lithuania, but the number of orders from Latvia and Russia has fallen. The operating revenues rose by 15 per cent in 2009 and the operating profit was almost tripled compared to 2008.

Kanal 2 is the biggest TV channel in Estonia measured in number of viewers. Its total operating revenues and advertising revenues fell by 29 per cent in 2009 compared to 2008.

The total operating revenues of Schibsted's companies in Lithuania dropped by 42 per cent in 2009 compared to 2008. The advertising revenues declined by 54 per cent during this period.

FUTURE PROSPECTS

Schibsted's advertising revenues are highly dependent on the development of real-economy indicators, such as GDP growth and unemployment. Macroeconomic forecasts in the market suggest that certain parameters will level out or grow in the coming quarters but there is significant variation between markets. Online media are also affected by the economic downturn. This is particularly true of online newspapers and recruitment websites. Other classified ads websites are somewhat less affected. Online media are expected to continue strengthening their relative position.

In Scandinavia, the advertising markets remain hesitant but underlying small improvements are still anticipated in certain categories. This particularly relates to online classified ads. Online classified ads operations are expected to do better than the printed publications. Tabloid newspapers are subject to pressure on their circulation as a result of the migration to online news media. VG and Aftonbladet are likely to continue being affected by this trend. More stable circulation developments are expected for subscription-based newspapers.

In Schibsted's other main markets - Spain, France and the Baltic region - the structural transition to online media is expected to support the development of Schibsted's activities. However, independent macro-economic forecasts show few signs of short-term improvement in the advertising markets, and the markets in Spain and the Baltic are particularly demanding.

Schibsted is continuing to focus on costs and implement measures to improve profitability. The profitability programme had a cumulative effect of NOK 1.2 billion in 2009 including additional measures which were not part of the original profitability programme. The programme aims to achieve a cumulative effect of NOK 1.6 billion by the end of 2011.

The Group is continuing to make targeted investments in online growth opportunities. New classified ads websites will continue to be established and, depending on the opportunities which arise in the market, the level of this type of investment may be slightly higher in 2010 than in 2009.

Schibsted expects the price of newsprint to fall by 15-20 per cent in 2010 compared to 2009.

GOING CONCERN ASSUMPTION

In accordance with section 3-3a of the Norwegian Accounting Act, the Board confirms that the Group is a going concern. The 2009 financial statements have been prepared on this assumption. The assumption is based on the Group's long-term strategic forecasts. The Group's economic and financial position is good.

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SCHIBSTED ANNUAL REPORT 2009

WORKING ENVIRONMENT

Schibsted aims to be one of the leading companies in Europe in terms of developing talent, managers and employees. The work of attracting talented people, developing good managers and creating competent organisations is given high priority by the senior management of the Group and subsidiaries. Providing competitive terms of employment and a stimulating working environment with good opportunities for personal and professional development form part of that strategy.

At the year-end, Schibsted had approximately 7,500 (8,100) employees, around 4,000 (5,400) of whom worked outside Norway. The Group's sickness absence rate was five per cent of the total working hours, up from the previous year (4%). However, this is lower than the levels in previous years, which remained stable at six per cent for a long time.

Of the Group's companies, the operations of the printing companies in particular involve a certain risk of injury. At the year-end, Schibsted owned five newspaper printing plants: Schibsted Trykk in Oslo, Kroonpress in Tartu, Estonia and Media Norge's printing plants in Bergen, Stavanger and Kristiansand in Norway. No accidents or major incidents were registered at any of the printing plants in 2009. During the year, a total of 15 minor injuries occurred in Schibsted printing companies. These were minor personal injuries, such as crushing injuries or cuts.

EXTERNAL ENVIRONMENT

The production of the Group's newspapers is a digital process up to the printing stage, and only affects the external environment to a slight extent. A newspaper printing works has a relatively neutral effect on the environment, and the chemicals used to produce the newspapers are dealt with as special waste and recycled in so far as possible. Agreements with approved transport companies ensure that special waste is collected safely. Normal operations do not involve any danger of emissions from the printing plants.

The printing works consumed 117 (91.6) thousand tonnes of paper, 2.5 (1.9) thousand tonnes of printing ink and 38.2 (26.5) GWh of electricity in 2009. The considerable increase in all these three input factors is due to the inclusion of three Media Norge printing plants in 2009.

The Group's newspaper companies in Norway and Sweden arrange for unsold newspapers to be returned and resold for recycling.

The Group's other operations only pollute the environment to a slight extent.

GENDER EQUALITY

Skilled managers and employees are a vital part of Schibsted's business. It is essential to the Group's continued success that women and men are given equal opportunities for development.

Several of the Group's subsidiaries are taking active steps to ensure that men and women are employed on equal terms, have equal access to management positions and receive equal treatment in recruitment and development processes. The Group management is also working systematically to ensure a balance between the sexes through the development programmes run by the Group and Schibsted's trainee programme, etc. Some areas, such as the printing operations, traditional graphic production areas and IT, are male-dominated.

The percentage of management positions in subsidiaries held by women has been relatively stable in recent years, although some companies increased their share of female managers in 2009. At the year-end, the percentages of women in the managements of some of the Group's largest subsidiaries were as follows:

Aftenposten	20 per cent (30%)
Aftonbladet	46 per cent (41%)
Svenska Dagbladet	50 per cent (45%)
VG	43 per cent (36%)
SCM Spania / LatAm	29 per cent (33%)

Schibsted's Group management consisted of seven men and two women (22 per cent women) as at 31 December 2009. Fifty per cent of the members of the Group's Board are women.

DISCRIMINATION

The companies' working environment committees are continuously striving to promote a good working environment and thus minimise the chance of discrimination taking place among the employees in the workplace. Further measures to promote the objective stated in the Norwegian Anti-Discrimination Act are not regarded as being necessary.

DIVIDEND AND CAPITAL STRUCTURE

Schibsted is a listed company that aims to provide a competitive rate of return based on healthy finances. Schibsted's Board believes it is essential that the company's shares are considered to be an interesting investment alternative. It is therefore one of the Board's goals to maximise the shareholders' return through long-term growth in the share price and dividend. The Board will attempt to ensure that the price of the company's shares reflects, in so far as possible, the company's long-term earnings ability.

Schibsted's main investments are in the media markets in Scandinavia, the Baltic, Spain and France. The Group's operations span most media categories, and electronic media are now just as important to the Group as printed newspapers. One thing that most of Schibsted's businesses have in common is that they are affected by cyclical fluctuations. However, strong brand names like VG, Aftenposten and Aftonbladet in the field of editorial publications and Blocket, Finn and InfoJobs in the advertising media contribute to long-term stability.

In 2005, Schibsted's Board adopted a new vision and strategy. The strategy entails an increased rate of change and development of the Group's operations. Schibsted's capital structure must appear to be sufficiently robust so that we can maintain the financial room for manoeuvre required by the Group's growth ambitions.

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SCHIBSTED ANNUAL REPORT 2009

At the start of 2009, the Group's financial flexibility was restricted. This was a result of considerable net investments over the past few years, the postponement of the establishment of Media Norge and the weak NOK, while the economic downturn also had a negative effect on the company's earnings. This led to the Group's debt being higher than previously estimated. In order to protect the Group's capital structure in a situation where the advertising markets were developing weakly and there was uncertainty concerning the macro-economic developments in Schibsted's markets, the Group Board advised the general meeting not to pay dividend for 2008.

The past year was characterised by weaker revenues, demanding cost cuts and considerable downsizing. At the same time, NOK 1.3 billion was raised through the rights issue. When the rights issue was carried out, there was great uncertainty linked to the outlook for the real economy. It was important to safeguard financial flexibility and further growth. In hindsight, the results were better than feared and a considerable amount has been raised from the sale of assets. There are signs that the economic situation is improving although many of our companies' markets are still weak.

Schibsted will place emphasis on having a fixed dividend payout ratio which, over time, is to be 25-40 per cent of the Group's normalised cash flow per share. In years when there is an economic slowdown, the company will try to pay dividend at the upper part of the target interval provided the Group's capital structure allows this.

The Group Board will advise the general meeting to pay dividend for the 2009 financial year. As a result of the continued uncertainty relating to future economic developments, the Board recommends that the payout ratio is to be at the low end and proposes a dividend of NOK 1.50 per share for the 2009 financial year. This is around 25% of a normalised cash flow per share.

As a result of the rights issue in July 2009, the total number of shares has increased from 69.25 million to 108 million. A dividend of NOK 1.50 per share thus leads to a payout of around NOK 155 million (after adjusting for the fact that no dividend is payable on shares owned by Schibsted) and is equivalent to a dividend of NOK 2.34 based on the number of shares prior to the share issue.

SCHIBSTED ASA

Schibsted ASA is the parent company of the Group. The company's accounts have been presented in accordance with the Norwegian Accounting Act and generally accepted accounting practices in Norway (NGAAP).

The operating revenues were NOK 36 million (36 million). The ordinary operating expenses of NOK 282 million (289 million) relate to Group administration services. The company made an operating loss of NOK 246 million (loss of 253 million), while the financial items came to NOK 1,313 million (1,000 million). The financial items mainly consist of dividend of NOK 700 million received from Media Norge and group contributions of NOK 626 million received from Group companies. Profit before taxes came to NOK 1,067 million (747 million).

Schibsted ASA had distributable equity of NOK 3,481 million (2,034 million) at 31 December 2009.

Schibsted ASA had 97 (127) employees at the close of the year, 27 (41) of whom were trainees seconded to the Group's companies. The Group's CEO is Schibsted ASA's President and CEO.

The Board of Schibsted ASA proposes allocating the profit for the year as follows:

Profit for the year	NOK 969 million
Proposed allocation:
Transferred to retained earnings	NOK 814 million
Allocated to dividend, NOK 1.50 per share	NOK 155 million
Group contributions to subsidiaries total NOK 319 million

Oslo, 22 March 2010
Schibsted ASA's Board of Directors

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SCHIBSTED ANNUAL REPORT 2009

DECLARATION REGARDING THE DETERMINATION OF SALARY AND OTHER REMUNERATION TO MANAGERS OF SCHIBSTED ASA

1. THE BASIS FOR THE COMPANY'S MANAGEMENT REMUNERATION POLICY

Schibsted's Group Board views the employees as the Group's most important resource and has a focus on the Group offering competitive conditions in order to attract and retain skilled employees. The company's human resource policy covers several factors, including the pay and pension conditions, working environment, various development programmes and more traditional employee benefits. The management policy is part of the company's human resource policy.

2. WHO IS COVERED BY THE GUIDELINES

The guidelines for determining the manager's remuneration are decided on by the Group Board and apply to remuneration to managers. Schibsted's Group CEO and Group management are directly covered by the guidelines. The guidelines also provide guidance for the remuneration of other senior managers and management groups in the Group's core activities in Norway and abroad.

3. THE PERIOD FOR WHICH THE DECLARATION APPLIES

The declaration applies for the coming financial year, cf section 6-16 a) (2) of the Norwegian Public Limited Companies Act. The Board will base its work on this declaration following discussions at the Annual General Meeting on 12 May 2010.

4. THE MAIN PRINCIPLES OF THE COMPANY'S MANAGEMENT REMUNERATION POLICY

The fixed salary of the Group's managers is perceived to be moderate. This also forms the basis of the Group Board's assessment of various additional benefits as a natural part of the managers' total remuneration.

The Group's further growth and profitability depend on the employees' efforts to ensure the continuous development of the operations and improvement in profitability. To motivate managers to make such efforts, variable pay and other incentive schemes are linked to factors that the managers themselves can influence. These schemes must appear reasonable compared to the Group's results and value creation for the shareholders that year.

4.1. Fixed salary

The fixed salary (the gross annual salary before tax and before variable pay and other additional benefits have been calculated) is to be an important part of the manager's salary.

With a few exceptions, the Group managers' salaries were not increased from 2008 to 2009. The increase in fixed salaries is expected to be moderate in 2010.

4.2. Directors' fees

Employees do not receive directors' fees for Board appointments they accept as part of their work for the Group. Employee representatives are not covered by this rule.

4.3. Benefits in kind and other special schemes

Managers will normally be given the benefits in kind that are normal in comparable positions, ie, telephone expenses, a laptop, free broadband connection and use, newspapers, a company car or car allowance and free parking. There are no special limitations on the type of other benefits that can be agreed on.

The Group's manager-loan scheme was wound up in 2006 and has not been offered to new managers since then. This scheme entitled the manager to a loan of NOK 400,000-800,000 in return for a charge on the borrower's home of up to 100 per cent of the approved market value. Schibsted ASA has established a guarantee for the entire loan portfolio, which is currently approximately NOK 5 million for the entire Group.

4.4. Variable pay and other incentive schemes

Guidelines have been established for the use of variable pay and other incentive schemes in the Group. The Group Board believes there is a need to be able to offer various incentive schemes in order to ensure long-term value creation and entrepreneurship. Such incentive schemes may consist of short-term incentives (normally an annual bonus) and long-term incentives (normally three-year schemes).

4.4.1. Annual bonus

Managers take part in an annual variable pay programme which is linked to the attainment of goals each year. Other Group employees may also take part in such schemes. The variable pay is limited to a maximum of six months' salary for the Group CEO and varies from four to six months' salary for other members of the Group management. For other employees, the payment each year is normally limited to three months' salary. The variable pay is to be in two parts, one which is to be linked to financial criteria and another which is to be linked to strategic and operational criteria. These criteria form part of an overall assessment.

The payment of variable pay to managers for the 2009 financial year is shown in note 11 to the financial statements.

4.4.2. Long-term incentive schemes

The objective of having multi-year incentive schemes is to promote long-term value creation in the companies and contribute to key Group manager's owning more of the Group so that the management and shareholders have the same interests.

During the past year, the Group Board has conducted an extensive review of Schibsted's prevailing option programme. The Board's conclusions and recommendations to the General Meeting regarding a future long-term incentive programme for the Schibsted Group are enclosed with the notice of the General Meeting as a separate annex. The complete version of the management remuneration declaration is published on Schibsted's website and will also be available from Schibsted and at the company's General Meeting on 12 May 2010.

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SCHIBSTED ANNUAL REPORT 2009

5. PENSION SCHEMES

The Group CEO and other managers in Norway are, like other employees, members of the Group's company pension schemes, see note 26 to Schibsted's consolidated financial statements.

The Group CEO and other managers in the Group have individual pension contracts which mainly entitle them to a retirement pension from the age of 62 years until death (early retirement pension), as well as to a disability pension, child pension and spouse/cohabitant pension. The full retirement/disability pension normally equals 66 per cent of the fixed salary. Coordination provisions, restraints on competition and scaling down provisions apply as long as a manager receives an early retirement pension or any other pension from Schibsted.

As from 2007, pension schemes in excess of the Group schemes are secured through the management accounts of the respective companies. The pension costs linked to Schibsted ASA's managers are stated in note 11 to the financial statements.

The Group has a goal of creating as uniform as possible a pension system within the Group, and it will continue this work in 2010. The schemes are assessed in relation to both the managers' overall remuneration and comparable companies.

The Group's managers based in Sweden mainly have defined contribution pension insurances which ensure them benefits in line with those of Norwegian managers as from the age of 62 years. Guidelines have been established to determine contribution rates based on age and salary. The executive vice president for Sweden has a defined benefit pension insurance on a level with those of the Norwegian executive vice presidents. The Group Board believes that today's schemes for managers based in Sweden are adapted to the market and these schemes will be continued without any major changes.

The pension level and solution for managers outside Norway and Sweden are to be viewed in connection with the individual manager's overall salary and employment conditions and are intended to be comparable to the overall solution for managers in Norway and Sweden. Local rules linked to pension legislation, social security rights, tax, etc, are taken into account when shaping the individual pension contracts.

6. TERMINATION PAYMENT SCHEMES

The Group CEO is entitled to a termination payment equal to 24 months' salary in addition to the six-month period of notice. The other Group management and managers are normally entitled to termination payments equal to 6-18 months' salary, depending on their job level. A prohibition against competition and normal scaling down provisions apply during the termination payment period. A termination payment is only made if the company dismisses the employee with notice; not if the manager resigns and not if there are grounds for summary dismissal.

7. THE EFFECTS ON THE COMPANY AND SHAREHOLDERS OF AGREEMENTS ENTERED INTO OR AMENDED IN 2009

The option allocation framework was 198,750 options in 2009, of which 150,000 options were allocated to 14 participants.

The option programme contains an adjustment mechanism for cases when the company's financial structure is changed, among other things as a result of share issues. The rights issue in the summer of 2009 was such an event that indicated an adjustment. Since the adjustment mechanism was not clearly referred to in the declaration regarding management remuneration for 2008, a cash compensation agreement has been entered into, subject to the General Meeting's approval, for options that were exercised during the period between the rights issue and the Annual General Meeting on 12 May 2010. The costs to the company of the compensation scheme are not expected to exceed NOK 2 million. For options exercised after the General Meeting, the adjustment mechanism means that the number of shares and strike prices are to be adjusted in accordance with the Oslo Stock Exchange's Derivatives Regulations, so that the value of the options is maintained after the share issue.

The Board believes that the guidelines for share-based remunerations promote value creation in the company/Group and that the effects on the company and shareholders are for this reason positive.

The changes made to the company's so-called "top hat scheme" linked to a pension for the company's managers in 2007 were due to new tax rules. In real terms, the Group's pension costs are more or less the same but the effects on liquidity are postponed until the payment dates.

Oslo, 22 March 2010

Board of Directors Schibsted ASA

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SCHIBSTED ANNUAL REPORT 2009

ARTICLES OF ASSOCIATION OF SCHIBSTED ASA

Last changed at the Extraordinary General Meeting on June 10, 2009

§ 1 NAME

The company is a public limited company with the name Schibsted ASA.

§ 2 REGISTERED OFFICE

The company's registered office of business is in Oslo, Norway.

§ 3 OBJECTIVES

The purpose of the Company is to engage in the information business, as well as related business activities.

The shareholders shall enable the Company to operate its information business in such a way that editorial freedom and integrity are fully ensured. The requirement for editorial freedom and integrity shall apply to all media and publications encompassed by the Norwegian and international activities of the Schibsted Group.

§ 4 SHARE CAPITAL

The Company's nominal share capital is NOK 108,003,615 pro rated on 108,003,615 shares each of NOK 1.00. All shares are fully paid up and registered by name. The Company's shares shall be registered in the Norwegian Registry of Securities.

§ 5 TRANSFERABILITY

The Company's shares are freely transferable subject to the restrictions set out in § 6 below.

§ 6 RESTRICTIONS ON OWNERSHIP AND VOTING RIGHTS

No shareholder may own or vote at the general meeting in respect of more than 30% of the shares. In addition to a shareholder's own shares, shareholdings which are owned or acquired by the following are included:

a) The shareholder's spouse, minor children or persons with whom the shareholder has a common household
b) Companies where the shareholder has an influence as specified in § 1-2 of the Norwegian Public Limited Liability Companies Act
c) Companies within the same group of companies as the shareholder, and
d) Anyone with whom the shareholder has a binding collaboration with regard to the exercise of their rights as shareholders.

§ 7 CHANGES IN THE ARTICLES OF ASSOCIATION

Any resolution to amend the Articles of Association, shall be passed by the Shareholders' Meeting and shall require the endorsement of more than 3/4 of the share capital represented in the relevant Shareholders' Meeting.

The first paragraph correspondingly applies to decisions or voting concerning:

a) The sale of shares or operations, hereunder private placing, mergers or demergers in directly or indirectly owned subsidiaries to others than another company in the Schibsted group.
b) Transfer of the publishing rights to Aftenposten and Verdens Gang to others than another company in the Schibsted group.

The Shareholders' Meeting may through majority vote as mentioned in the first paragraph decide to give the board the authority to decide on matters as mentioned in the second paragraph (itra a) and b).

The board ensures that the statutes of subsidiaries include provisions required to ensure the implementation of this provision.

§ 8 BOARD OF DIRECTORS

The Company's Board of Directors shall comprise from 6 to 11 members, as well as deputy members, as decided by the Annual General Meeting. The employees in the Group shall be represented on the Board by the number of representatives in accordance with current agreements with the Company. This means that the employees in the Group shall have two Board members when the Board comprises six, seven or eight members, and that the employees in the Group shall have three Board members when the Board comprises nine, ten or eleven members.

Shareholders owning 25% or more of the Company's share capital shall have the right to appoint one of the Board members elected by the shareholders. Board members shall be elected for 1 year.

§ 9 EXECUTION OF DOCUMENTS

The Chairman of the Board and one of the other members of the Board of Directors may jointly sign for the Company. The Board may grant power of procuration.

§ 10 ANNUAL GENERAL MEETING

In the ordinary Annual General Meeting, the following matters shall be acted upon:

1. Adoption of the financial statements (profit and loss account and balance sheet), resolution as to the application of the years' profit or coverage of deficit pursuant the balance sheet adopted.
2. Adoption of the consolidated accounts (profit and loss account and balance sheet).
3. Election of an Election Committee at the end of the service period. The Election Committee shall consist of 3 members. The chairman of the Election Committee is elected by the General Meeting. The Election Committee is elected for 2 years. The Election Committee shall among others nominate shareholders' board members and their deputies whenever their respective service period expires or a by-election is needed. As far as possible, the Election Committee shall announce its nominations in the shareholders' notice of the Annual General Meeting.

The Election Committee proposes remunerations to the members of the Board of Directors. The proposal shall be made in advance for a period of one year counting from the Annual General Meeting.

The Election Committee may pass opinions on, and may put forward proposals to the General Meeting, in matters regarding the Board of Directors' size, composition and working conditions, as well as matters regarding the Company's auditor, including proposals regarding the election of the Company's auditor and the auditor's remuneration.

1. Election of shareholders' Board members and deputies whenever their respective service period expires.
2. In the notice of the Annual General Meeting, the company may stipulate a registration deadline which may not be less than five days before the Annual General Meeting.
3. Other matters which by law or the Company's Articles of Association falls within the scope of the Annual General Meeting.

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Financial statements

CONTENTS

CONSOLIDATED FINANCIAL STATEMENTS

PAGE 44-47

Consolidated income statement > 44
Consolidated statement of comprehensive income > 44
Consolidated balance sheet > 45
Consolidated cash flow statement > 46
Consolidated statement of changes in equity > 47

PAGE 48-76

Notes
1 Company information > 48
2 Significant accounting policies > 48
3 Financial risk management > 53
4 Use of estimates > 54
5 Significant transactions > 54
6 Discontinued operations > 56
7 Events after the balance sheet date > 56
8 Segment information > 56
9 Other revenues > 58
10 Raw materials, work in progress and finished goods > 58
11 Personnel expenses and share-based payment > 58
12 Other operating expenses > 61
13 Financial items > 61
14 Taxes > 61
15 Intangible assets > 62
16 Property, plant and equipment and investment property > 63
17 Investments in associated companies > 64
18 Financial instruments by category > 65
19 Financial assets > 66
20 Other non-current assets > 66
21 Inventories > 66
22 Trade and other receivables > 66
23 Cash and cash equivalents > 67
24 Earnings per share > 67
25 Dividends > 68
26 Pension plans > 68
27 Interest-bearing borrowings > 69
28 Other non-current liabilities > 70
29 Other current liabilities > 70
30 Financial liabilities related to minority interest put options > 70
31 Joint Ventures > 71
32 Subsidiaries > 71
33 Supplemental information to the cash flow statement > 76
34 Transactions with related parties > 76

FINANCIAL STATEMENTS SCHIBSTED ASA

PAGE 78-80

Income statement > 78
Balance sheet > 79
Cash flow statement > 80

PAGE 81-85

Notes
1 Accounting policies > 81
2 Operating revenues > 82
3 Personnel expenses and man-years > 82
4 Non-current tangible assets and licences > 82
5 Other operating expenses > 82
6 Financial items > 82
7 Taxes > 82
8 Investments in shares > 83
9 Receivables > 83
10 Cash and bank deposits > 84
11 Ownership > 84
12 Equity > 84
13 Pension plans > 85
14 Current liabilities > 85
15 Guarantees and provision of security > 85
16 Events after the balance sheet date > 85

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SCHRISTED ANNUAL REPORT 2009

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER

(NOK million)	Note	2009	2008	2007
Operating revenues	8	12 745	12 851	12 745
Raw materials, work in progress and finished goods	10	(1 334)	(1 470)	(1 593)
Changes in inventories		(37)	(36)	8
Personnel expenses	11	(4 533)	(4 590)	(4 308)
Depreciation and amortisation	15,16	(662)	(592)	(560)
Other operating expenses	12	(5 280)	(5 324)	(5 284)
Operating profit before income from associated companies, impairment loss and other revenues and expenses		899	839	1 008
Income from associated companies	17	(67)	(73)	149
Operating profit before impairment loss and other revenues and expenses		832	766	1 157
Impairment loss	15,16	(161)	(1 558)	(33)
Other revenues and expenses	9	(236)	482	62
Operating profit (loss)		435	(310)	1 186
Financial income	13	206	88	90
Financial expenses	13	(362)	(518)	(306)
Profit (loss) before taxes		279	(740)	970
Taxes	14	(94)	(169)	(289)
Net income (loss) continuing operations		185	(909)	681
Net income (loss) discontinued operations	6	327	39	56
Net income (loss)		512	(870)	737
Net income (loss) attributable to minority interests		117	36	102
Net income (loss) attributable to majority interests		395	(906)	635
Earnings per share (NOK)	24	4.74	(13.95)	9.52
Earnings per share continuing operations (NOK)	24	0.81	(14.55)	8.68
Diluted earnings per share (NOK)	24	4.74	(13.94)	9.49
Diluted earnings per share continuing operations (NOK)	24	0.81	(14.54)	8.65
Earnings per share - adjusted (NOK)	24	4.42	2.79	8.31
Diluted earnings per share - adjusted (NOK)	24	4.42	2.79	8.28

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER

(NOK million)	2009	2008	2007
Net income (loss)	512	(870)	737
Change in fair value of investments available for sale	207	(7)	29
Translation differences	(1 035)	1 161	(299)
Effect of hedging of net investment in foreign operations	565	(780)	124
Comprehensive income	249	(496)	591
Comprehensive income attributable to minority interests	116	49	87
Comprehensive income attributable to majority interests	133	(545)	504

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SCHIBSTED ANNUAL REPORT 2009

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER

(NOK million)	Note	2009	2008	2007
ASSETS
Deferred tax assets	14	234	514	194
Intangible assets	15	7 222	7 617	8 093
Investment property	16	63	-	-
Property, plant and equipment	16	2 459	1 615	1 720
Investments in associated companies	17	411	2 743	2 001
Non-current financial assets	19	217	122	155
Other non-current assets	20	246	81	82
Non-current assets		10 852	12 692	12 245
Inventories	21	138	164	123
Trade and other receivables	22	2 490	2 781	2 466
Current financial assets	19	485	7	3
Cash and cash equivalents	23	1 255	747	842
Current assets		4 368	3 699	3 434
Non-current assets held for sale	16	-	-	312
Total assets		15 220	16 391	15 991
EQUITY AND LIABILITIES
Share capital		108	69	69
Treasury shares		(5)	(5)	(3)
Other paid-in capital		1 416	198	190
Other equity		3 318	3 355	4 514
Majority interest in equity		4 837	3 617	4 770
Minority interests		437	124	193
Equity		5 274	3 741	4 963
Deferred tax liabilities	14	552	674	508
Pension liabilities	26	1 567	861	744
Non-current interest-bearing borrowings	27	3 405	5 418	757
Other non-current liabilities	28	111	137	1 557
Non-current liabilities		5 635	7 090	3 566
Current interest-bearing borrowings	27	404	726	4 206
Income tax payable		71	255	193
Other current liabilities	29	3 836	4 579	3 063
Current liabilities		4 311	5 560	7 462
Total equity and liabilities		15 220	16 391	15 991

Oslo, 22 March 2010

Schibsted ASA's Board of Directors

President and CEO

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SCHIBITED ANNUAL REPORT 2009

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER

(NOK million)	Note	2009	2008	2007
CASH FLOW FROM OPERATING ACTIVITIES
Profit (loss) before taxes (continuing operations)		279	(740)	970
Profit (loss) before taxes discontinued operations	6	335	56	58
Income from associated companies	17	67	73	(149)
Dividends received from associated companies	17	37	109	70
Taxes paid		(206)	(217)	(203)
Sales losses / (gains) non-current assets		(424)	(880)	(311)
Amortisation and impairment losses intangible assets	15	461	1 845	280
Depreciation and impairment losses property, plant and equipment	16	372	333	339
Impairment losses financial instruments	13	43	82	-
Change in working capital		(31)	96	91
Net cash flow from operating activities		933	757	1 145
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of intangible assets and property, plant and equipment	15,16	(390)	(603)	(619)
Acquisition of subsidiaries and joint ventures, net of cash acquired	33	(491)	(249)	(323)
Proceeds from sale of intangible assets and property, plant and equipment		33	1 221	352
Proceeds from sale of subsidiaries and joint ventures, net of cash sold	33	797	(28)	353
Investments in / sale of other shares		360	(744)	(768)
Other investments / sales		(161)	(15)	68
Net cash flow from investing activities		148	(418)	(937)
Net cash flow before financing activities		1 081	339	208
CASH FLOW FROM FINANCING ACTIVITIES
New interest-bearing loans and borrowings		1 146	5 672	1 560
Repayment of interest-bearing loans and borrowings		(2 928)	(5 361)	(2 501)
Capital increase	24	1 252	-	-
Minority's contribution and withdrawal of capital		(43)	(134)	(79)
Purchase / sale of treasury shares		-	(221)	(252)
Dividends paid	25	-	(390)	(334)
Net cash flow from financing activities		(573)	(434)	(1 606)
Net increase (decrease) in cash and cash equivalents		508	(95)	(1 398)
Cash and cash equivalents as at 1 January		747	842	2 240
Cash and cash equivalents as at 31 December	23	1 255	747	842

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SCHIBSTED ANNUAL REPORT 2009

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(NOK million)	Share Capital	Treasury shares	Share premium reserve	Other paid-in equity	Retained earnings	Foreign currency transl. reserve	Net unrealised gains reserve	Total	Minority interests	Total
As at 31 December 2006	69	(2)	76	102	4 550	49	31	4 875	294	5 169
Net income (loss) 2007	-	-	-	-	635	-	-	635	102	737
Change in fair value of investments available for sale (Note 19)	-	-	-	-	-	-	29	29	-	29
Translation differences	-	-	-	-	-	(284)	-	(284)	(15)	(299)
Effect of hedging of net investment in foreign operations	-	-	-	-	-	124	-	124	-	124
Comprehensive income for the period	-	-	-	-	635	(160)	29	504	87	591
Share-based payment (Note 11)	-	-	-	8	-	-	-	8	-	8
Dividends (Note 25)	-	-	-	-	(334)	-	-	(334)	-	(334)
Dividends to minority interests	-	-	-	-	-	-	-	-	(88)	(88)
Change in treasury shares (Note 24)	-	(1)	-	4	(255)	-	-	(252)	-	(252)
Additions, disposals and change in ownership of subsidiaries and associated companies	-	-	-	-	(31)	-	-	(31)	(100)	(131)
Total transactions with the owners	-	(1)	-	12	(620)	-	-	(609)	(188)	(797)
As at 31 December 2007	69	(3)	76	114	4 565	(111)	60	4 770	193	4 963
Net income (loss) 2008	-	-	-	-	(906)	-	-	(906)	36	(870)
Change in fair value of investments available for sale (Note 19)	-	-	-	-	-	-	(7)	(7)	-	(7)
Translation differences	-	-	-	-	-	1 148	-	1 148	13	1 161
Effect of hedging of net investment in foreign operations	-	-	-	-	-	(780)	-	(780)	-	(780)
Comprehensive income for the period	-	-	-	-	(906)	368	(7)	(545)	49	(496)
Share-based payment (Note 11)	-	-	-	8	-	-	-	8	-	8
Dividends (Note 25)	-	-	-	-	(390)	-	-	(390)	-	(390)
Dividends to minority interests	-	-	-	-	-	-	-	-	(136)	(136)
Change in treasury shares (Note 24)	-	(2)	-	-	(220)	-	-	(222)	-	(222)
Additions, disposals and change in ownership of subsidiaries and associated companies	-	-	-	-	(4)	-	-	(4)	18	14
Total transactions with the owners	-	(2)	-	8	(614)	-	-	(608)	(118)	(726)
As at 31 December 2008	69	(5)	76	122	3 045	257	53	3 617	124	3 741
Net income (loss) 2009	-	-	-	-	395	-	-	395	117	512
Change in fair value of investments available for sale (Note 19)	-	-	-	-	-	-	207	207	-	207
Translation differences	-	-	-	-	-	(1 034)	-	(1 034)	(1)	(1 035)
Effect of hedging of net investment in foreign operations	-	-	-	-	-	565	-	565	-	565
Comprehensive income for the period	-	-	-	-	395	(469)	207	133	116	249
Capital increase	39	-	1 213	-	-	-	-	1 252	-	1 252
Share-based payment (Note 11)	-	-	-	5	-	-	-	5	-	5
Dividends (Note 25)	-	-	-	-	-	-	-	-	-	-
Dividends to minority interests	-	-	-	-	-	-	-	-	(43)	(43)
Change in treasury shares (Note 24)	-	-	-	-	(2)	-	-	(2)	-	(2)
Additions, disposals and change in ownership of subsidiaries and associated companies	-	-	-	-	(168)	-	-	(168)	240	72
Total transactions with the owners	39	-	1 213	5	(170)	-	-	1 087	197	1 284
As at 31 December 2009	108	(5)	1 289	127	3 270	(212)	260	4 837	437	5 274

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SCHIBITED ANNUAL REPORT 2009

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

All amounts are in NOK million unless otherwise stated.

NOTE 1: COMPANY INFORMATION

Schibsted ASA is domiciled in Norway. The company's head office is located at Apotekergt. 10, Oslo. The company's postal address is P.O. Box 490 Sentrum, 0105 Oslo. The company is a public limited company that is listed on the Oslo Stock Exchange under ticker SCH.

Schibsted is one of Scandinavia's leading media groups. The major businesses are in Norway, Sweden, Baltics, Spain and France, but the Group also has operations in Denmark, Finland, Austria, Italy, Switzerland, Hungary, Belgium, Netherlands, Portugal, Greece, Russia, Singapore, Malaysia, Philippines, Indonesia and Latin America. Schibsted currently has a presence in printed newspapers, online newspapers, classifieds, directories and live pictures.

The financial statements were approved by the Board of Directors on 22 March 2010 and will be proposed to the General Meeting 12 May 2010.

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

BASIS FOR THE PREPARATION OF THE FINANCIAL STATEMENTS

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), issued by International Accounting Standards Board (IASB), EU-approved and in accordance with the Norwegian Accounting Act § 3-9. The consolidated financial statements have been prepared based on a historical cost basis, with the exception of financial instruments in the categories "Financial assets or financial liabilities at fair value through profit or loss" and "Available-for-sale financial assets" which are measured at fair value.

In the consolidated income statement, expenses are presented using a classification based on the nature of expenses.

Determining the carrying amounts of some assets and liabilities requires management to estimate the effects of uncertain future events on those assets and liabilities at the balance sheet date. Key sources of estimation uncertainty at the balance sheet date having a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed in note 4.

CHANGES IN ACCOUNTING POLICIES

The Group has implemented the following IFRS-standards with effect from 1 January 2009:

IFRS 8 Operating Segments

Segment information presented under IFRS 8 is based on a management approach and is presented consistent with internal management reporting. Former segment reporting was based on geography as primary segment.

With effect from 2009, the Group has three segments; Norway, Sweden and International. Until 2008, the Group also had three segments; Norway, Sweden and International. The operations included in the segments have though changed, mainly through the Group's classified ads operations in Sweden, which for management purposes is included in the international classified ads operations being reclassified from segment Sweden to segment International.

Segment information for previous periods is restated for comparison purposes.

Revised IAS 23 Borrowing Costs

In the past, the Group has expensed borrowing costs, but prospectively from 1 January 2009, borrowing costs directly attributable to qualifying assets, are capitalised.

Revised IAS 1 Presentation of Financial Statements

The implementation changes the Group's presentation of income statement and changes in equity. The statement of changes in equity only shows details on transactions with owners. Non-owner related changes in equity is presented in two statements; Consolidated income statement and Statement of comprehensive income.

Previous periods are restated.

CONSOLIDATION PRINCIPLES

The consolidated financial statements include the parent Schibsted ASA and all subsidiaries, presented as the financial statements of a single economic entity. Intragroup balances, transactions, income and expenses are eliminated.

Subsidiaries are all entities that are controlled, directly or indirectly by Schibsted ASA. Control is the power to govern the financial and operational policies of an entity and is normally achieved through ownership of more than half of the voting power of an entity or by virtue of an agreement with other investors. The existence and effect of potential voting rights that are currently exercisable or convertible, are considered when assessing whether control exists.

Subsidiaries are included in the consolidated financial statements from the date Schibsted ASA effectively obtains control of the subsidiary (acquisition date) and until the date Schibsted ASA ceases to control the subsidiary.

Minority interest is that portion of the profit or loss and net assets of a subsidiary attributable to equity interests that are not owned, directly or indirectly, by Schibsted ASA. Minority interests are presented in the consolidated balance sheet within equity, separately from the parent shareholders' equity. Profit or loss attributable to minority interests is disclosed on the face of the income statement as allocation of profit or loss for the period.

All business combinations in which Schibsted ASA or a subsidiary is the acquirer, i.e. the entity that obtains control of an other entity or business, are accounted for by applying the purchase method. The cost of the business combination is allocated by recognising the acquiree's identifiable assets, liabilities and contingent liabilities at their fair values at the acquisition date. The excess, when cost exceeds fair value of net assets acquired, is recognised as goodwill. The excess, when fair value of net assets acquired exceeds cost, is recognised immediately in profit or loss.

In the case of successive share purchases, identifiable assets, liabilities and contingent liabilities are recognised at their fair values at the acquisition date. Any adjustment to the fair value of identifiable net assets, from the dates of earlier transactions until the acquisition date, is recognised as a revaluation directly in equity. Goodwill is recognised with the aggregate amount of goodwill determined separately for each transaction.

On increase of ownership share in subsidiaries, goodwill related to the acquired ownership share, measured using the principles of the purchase method, is recog

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SCHIBSTED ANNUAL REPORT 2009

nised. The remaining difference between the cost of the additional interest in the subsidiary and carrying amount of the related minority interest is recognised directly in equity. Reduced ownership share in subsidiaries with no loss of control, is accounted for as a transaction with other equity shareholders. Gain on disposal, calculated as proceeds received less share of identifiable net assets and goodwill disposed of, is recognised in equity until control ceases.

Joint ventures

Joint ventures are defined as companies in which Schibsted participates, directly or through subsidiaries, and where the participants through agreements have joint control over the operation's activities.

Joint ventures are accounted for using proportionate consolidation whereby Schibsted's share of revenue, expenses, assets and liabilities are recorded line by line in the consolidated financial statements.

Associated companies

Associated companies are defined as companies in which Schibsted ASA, directly or through subsidiaries, does not have a controlling interest but exercise significant management influence. Significant influence is normally presumed to exist when Schibsted controls 20% or more of the voting power of the investee.

Associated companies are accounted for applying the equity method of accounting and are initially recognised at costs. The group's investment in associates includes goodwill identified on acquisition, net of any accumulated impairment loss.

Schibsted recognises its share of the company's net income and gains or losses on sale in a separate line item in the income statement within operating profit.

When the group's share of losses in an associate equals or exceeds its interest in the associate, the group does not recognise further losses. In the balance sheet, the investment is carried at cost adjusted for the share of net income, changes in equity not recognised in profit or loss and dividends received.

ACCRUAL, CLASSIFICATION AND VALUATION PRINCIPLES

Classification – current / non-current distinction

Cash and cash equivalents, assets included in the normal operating cycle and other financial assets expected to be realised within twelve months after the balance sheet date are classified as current assets. Liabilities included in the normal operating cycle and liabilities expected to be realised within twelve months after the balance sheet date are classified as current liabilities. Other assets and liabilities are classified as non-current.

Operating segments

The division into operating segments is based on the organization of the group and corresponds to the internal management reporting to the chief operating decision maker, defined as the President and CEO.

Revenue recognition

Revenue from sale of goods is recognised when delivery has occurred and the significant risks and rewards of ownership have been transferred to the buyer.

Revenue from the rendering of services is recognised by reference to the stage of completion of the transaction (the percentage of completion method) provided that the outcome of the transaction can be estimated reliably. Discounts are recognised as a revenue reduction.

Advertising revenue in printed media is recognised when inserted. Subscription revenues for printed media are invoiced in advance and recognised upon delivery over the subscription period. Revenue from other sales of goods, including casual sales, are recognised upon delivery, taking into account estimated future returns.

Advertising revenue from the internet is recognised when displayed. Other revenues from the internet, including subscription based revenues, are recognised in the periods in which the service is rendered.

Commissions related to sales of ads and casual sales are recognised as operating expenses.

Revenue from TV and film productions are recognised under the percentage of completion method.

When goods are sold or services rendered in exchange for dissimilar goods or services, revenue is recognised in accordance with the recognition policy related to relevant goods or services. Revenue is measured at the fair value of the goods or services delivered or received, depending on which item that can be measured reliably.

Interest income is recognised using the effective interest method and dividends are recognised when the right to receive payment is established.

Government grants

Government grants are recognised when there is reasonable assurance that the conditions attaching to them will be complied with, and that the grants will be received.

Government grants (press subsidies) are recognised as income on a systematic basis over the periods necessary to match them with the related costs which they are intended to compensate.

Financial instruments

The Group initially recognises loans, receivables and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.

The Group classifies at initial recognition its financial instruments in one of the following categories: Financial assets or financial liabilities at fair value through profit or loss, loans and receivables, available-for-sale financial assets and other financial liabilities. The classification depends on the purpose for which the financial instruments were acquired.

Financial assets or financial liabilities at fair value through profit or loss are financial assets held for trading and acquired primarily with a view of selling in the near term. The category consists of financial derivatives unless they are designated and effective hedging instruments. Financial derivatives are included in the balance sheet items trade and other receivables and other current liabilities.

These financial assets and liabilities are measured at fair value when recognised initially, and transaction costs are charged to expense as incurred. Subsequently, the instruments are measured at fair value, with changes in fair value, including interest income, recognised in profit or loss as financial income or financial expenses.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. The category is included in the balance sheet items other non-current assets, trade and other receivables and cash and cash equivalents. Loans and receivables are recognised initially at fair value plus directly attributable transaction costs. Subsequently, loans and receivables are measured at amortised cost using the effective interest method, reduced by any impairment loss. Short-term loans and receivables are for practical reasons not amortised. Effective interest related to loans and receivables are recognised in income as financial income.

Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale or which are not classified in any other category.

Carrying amount of available-for-sale financial assets are included in the balance sheet items non-current financial assets and current financial assets.

These financial assets are measured at fair value plus directly attributable transaction costs. Changes in fair value are recognised in equity (net unrealised gains

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reserve), except for impairment losses that are recognised in profit or loss. When an investment is derecognised, the cumulative gain or loss is transferred to profit or loss under financial income or financial expenses. Dividends are recognised when the right to receive payment is established.

Financial liabilities not included in any of the above categories are classified as other financial liabilities. The category other financial liabilities are included in the balance sheet items non-current interest-bearing borrowings, other non-current liabilities, current interest-bearing borrowings and other current liabilities. Other financial liabilities are recognised initially at fair value. Subsequently, other financial liabilities are measured at amortised cost using the effective interest method. Effective interest is recognised in income as financial expenses. Short-term financial liabilities are for practical reasons not amortised.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire and the Group has transferred substantially all the risks and rewards of ownership. Financial liabilities are derecognised when the obligation is discharged, cancelled or expires. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the balance sheet when the Group has a legal right to offset the amounts and intends to settle on a net basis or to realise the asset and settle the liability simultaneously.

The group assesses at each balance sheet date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is considered as an indicator that the securities are impaired. Indications of impairment is evaluated separately for each investment, but normally will a decline in value of more than 20% compared to cost be considered to be significant, and normally will a decline in value below cost lasting for more than 12 months be considered to be prolonged. For trade and other receivables default in payments, significant financial difficulties of the debtor or probability that the debtor will enter bankruptcy or debt settlement negotiations are considered to be indicators that the group will not be able to collect all amounts due according to the original terms of the receivables. The carrying amount of the trade receivables is reduced through the use of an allowance account, and the amount of the loss is recognised as other operating expenses in the income statement, while impairment of other financial assets are recognised as financial expenses.

Fair value of financial instruments is based on quoted prices in an active market if such markets exist. If an active market does not exist, fair value is established by using a valuation technique that is expected to provide a reliable estimate of the fair value. The fair value of listed securities are based on current bid prices. The fair value of unlisted securities are based on cash flows discounted using an applicable risk free market interest rate and the risk premium specific to the unlisted securities. Fair value of forward contracts is estimated based on the difference between the spot forward price of the contracts and the closing rate at the date of the balance sheet. The forward rate addition and deduction is recognised as interest income or interest expense. Fair value of interest and currency swaps is estimated based on discounted cash flows, where future interest rates are derived from market based future rates.

Equity and treasury shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity (share premium reserve), net of any tax effects.

Share capital that is repurchased is classified as treasury shares and presented separately. Consideration paid, including directly attributable costs, net of any tax effects, is recognised as a deduction from equity. When treasury shares are sold or reissued, the consideration received is recognised as an increase in equity.

Foreign currency translation

Each individual entity included in the consolidated financial statements measures its results and financial position using the currency of the primary economic environment in which it operates (the functional currency). The consolidated financial statements are presented in NOK which is Schibsted ASA's functional and presentation currency.

Foreign currency transactions are translated into the entity's functional currency on initial recognition by using the spot exchange rate at the date of the transaction. At the balance sheet date, assets and liabilities are translated from foreign currency to the entity's functional currency by

• translating monetary items using the exchange rate at the balance sheet date
• translating non-monetary items that are measured in terms of historical cost in a foreign currency using the exchange rate at the transaction date, and
• translating non-monetary items that are measured at fair value in a foreign currency using the exchange rate at the date when the fair value was determined.

Exchange differences arising on the settlement of, or on translating monetary items not designated as hedging instruments, are recognised in profit or loss in the period in which they arise. When a gain or loss on a non-monetary item is recognised directly in equity, any exchange component of that gain or loss is also recognised directly in equity. When a gain or loss on a non-monetary item is recognised in profit or loss, any exchange component of that gain or loss is also recognised in profit or loss.

On initial designation of a hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged item(s), including risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Group makes an assessment both at the inception of the hedge relationship as well as on an ongoing basis, whether the hedging instruments are expected to be highly effective in offsetting the changes in the fair value or cash flows for the respective hedged items during the period for which the hedge is designated.

Gains or losses related to loans or currency derivatives in foreign currencies, designated as hedging instruments in a hedge of a net investment in a foreign operation, are recognised directly in equity until disposal of the operation.

Upon incorporation of a foreign operation into the consolidated financial statements by consolidation, proportionate consolidation or the equity method, the results and financial position is translated from the functional currency of the foreign operation into NOK (the presentation currency). Assets and liabilities are translated at the closing rate at the balance sheet date and income and expenses are translated at average rates for the period. Resulting exchange differences are recognised as a separate component of equity until the disposal of the foreign operation.

Goodwill and fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation, is treated as assets and liabilities of that foreign operation. Thus they are expressed in the functional currency of the foreign operation and translated at the closing rate at the balance sheet date.

Property, plant and equipment

Property, plant and equipment are measured at its cost less accumulated depreciation and accumulated impairment losses.

The depreciable amount (cost less residual value) of property, plant and equipment is allocated on a systematic basis over its useful life. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item, is depreciated separately.

Costs of repairs and maintenance are recognised in profit or loss as incurred. Cost of replacements and improvements are recognised in the carrying amount of the asset.

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SCHIBSTED ANNUAL REPORT 2009

The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no economic benefits are expected from its use or disposal. Gain or loss arising from derecognition is included in profit or loss when the item is derecognised.

Investment property

Property that is not owner-occupied, but held to earn rentals or for capital appreciation, is classified as investment property. Investment property is measured at cost less accumulated depreciation and accumulated impairment losses.

Intangible assets

Intangible assets are measured at its cost less accumulated amortisations and accumulated impairment losses. Costs of developing software and other intangible assets are charged to expense until all requirements for recognition as an asset is met. Costs incurred after the requirements for recognition as an asset are met, including the requirement to demonstrate probable future economic benefits and that the cost of the asset can be measured reliably, are recognised as an asset.

Amortisation of intangible assets with a finite useful life is allocated on a systematic basis over its useful life. Intangible assets with an indefinite useful life are not amortised.

Impairment of non-financial assets

Property, plant, equipment, intangible assets and goodwill are reviewed for impairment whenever an indication that the carrying amount may not be recoverable is identified. Goodwill and other intangible assets that have an indefinite useful life are tested annually for impairment. Impairment indicators will typically be changes in market developments, the competitive situation or technological developments.

An impairment loss is recognised in the profit or loss statement if the carrying amount of an asset (cash generating unit) exceeds its recoverable amount.

The recoverable amount is the higher of value in use and fair value less cost to sell. Value in use is assessed by discounting estimated future cash flows. Estimated cash flows are based on management's experience and market knowledge for the given period, normally five years. For subsequent periods growth factors are used that do not exceed the long-term average rate of growth for the relevant market. Expected cash flows are discounted using a pre-tax discount rate that takes into account the expected long-term interest rate with the addition of a risk margin appropriate for the assets being tested. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates independent cash flows (cash-generating units). Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill. Any remaining amount is then allocated to reduce the carrying amounts of the other assets in the unit on a pro rata basis. Impairment losses are reversed if the loss no longer exists for all property, plant and equipment and intangible assets with the exception of goodwill where impairment losses are not reversed.

Leases

Leases are classified as either finance leases or as operating leases. Leases that transfers substantially all the risks and rewards incidental to the asset are classified as finance leases. Other leases are classified as operating leases.

When Schibsted is lessee in a finance lease, the leased asset and the liability related to the lease is recognised in the balance sheet. Depreciable leased assets are depreciated systematically over the useful life of the asset. Lease payments are apportioned between interest expense and reduction of the liability.

Lease payments related to operating leases are recognised as an expense over the lease term.

Borrowing Costs

Borrowing costs are generally recognised as an expense in the period in which they are incurred. Borrowing costs that are directly attributable to the acquisition,

construction or production of an asset, that necessarily takes a substantial period of time to get ready for its intended use or sale ("qualifying asset"), are included in the cost of that asset.

Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of inventories are assigned by using the first-in, first-out (FIFO) cost formula and comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Net realisable value is estimated selling price in the ordinary course of business, less estimated cost to sell.

Post-employment benefits

Pension plans, including multi-employer plans, are classified as defined contribution plans or defined benefit plans depending on the economic substance of the plan. Pension plans in which Schibsted's obligation is limited to the payment of agreed contributions and in which the actuarial risk and the investment risk fall on the employee, are classified as defined contribution plans. Other plans are classified as defined benefit plans.

As net defined benefit obligation is recognised the present value of the benefit obligation at the balance sheet date, less fair value of plan assets, adjusted for unrecognised actuarial gains (losses) and unrecognised past service cost.

Net benefit expense related to defined benefit plans include current service cost, interest cost, expected return on plan assets, actuarial gains or losses recognised and past service cost.

The present value of defined benefit obligations, current service cost and past service cost is determined using the Projected Unit Credit Method and actuarial assumptions regarding demographic variables and financial variables.

Net cumulative actuarial gains or losses exceeding the higher of either 10% of the present value of the defined benefit obligation or 10% of the fair value of plan assets, are recognised in profit or loss over the expected average remaining working lives of the employees participating in the plan.

Past service cost is recognised in profit or loss over the average period until the benefits become vested. Past service cost is recognised immediately to the extent the benefits are already vested immediately after the introduction of, or changes to, a defined benefit plan.

The contribution payable to a defined contribution plan attributable to the reporting period is recognised in profit or loss.

Multi-employer plans classified as defined benefit plans, but for which sufficient information is not available to enable recognition as a defined benefit plan, are accounted for as if they were defined contribution plans.

Social security taxes are included in the determination of defined benefit obligations and net benefit expense.

Share-based payment

In equity settled share-based payment transactions with employees, the fair value of the employee services and the corresponding equity increase is measured by reference to the fair value of the equity instruments granted. The fair value of options granted to employees are measured at grant date, and recognised as personnel expenses and equity increase immediately or over the vesting period when performance vesting conditions require an employee to serve over a specified time period.

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At each reporting date the companies remeasures the estimated number of options that is expected to vest. The amount recognised as an expense is adjusted to reflect the number of options which is expected to be, or actually become vested.

In cash settled share-based payment transactions with employees, the employee services and the incurred liability is measured at the fair value of the liability. The employee services and the liability are recognised immediately or over the vesting period when performance vesting conditions require an employee to serve over a specified time period. Until the liability is settled, the fair value of the liability is revised at each balance sheet date and at settlement date, with changes in fair value recognised in the profit or loss statement.

Income taxes

Current tax, which is the amount of income taxes payable in respect of taxable profit for a period, is, to the extent unpaid, recognised as a liability. If the amount paid exceeds the amount due, the excess is recognised as an asset.

A deferred tax liability is recognised for all taxable temporary differences, except for liabilities arising from the initial recognition of goodwill.

A deferred tax asset is recognised for deductible temporary differences, the carryforward of unused tax losses and the carryforward of unused tax credits to the extent that it is probable that future taxable profit will be available against which these benefits can be utilised.

No deferred tax liability is recognised for taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures when Schibsted is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Tax expense (tax income) comprises current tax expense (current tax income) and deferred tax expense (deferred tax income). Any amount recognised as current tax assets or liabilities and deferred tax assets or liabilities are recognised in profit or loss, except to the extent that the tax arises from a transaction or event recognised directly in equity or from a business combination.

Provisions, contingent liabilities and contingent assets

A provision is recognised when an obligation exists (legal or constructive) as a result of a past event, it is probable that an economic settlement will be required as a consequence of the obligation, and a reliable estimate can be made of the amount of the obligation.

The best estimate of the expenditure required to settle the obligation is recognised as a provision. When the effect is material, the provision is discounted using a market based pre-tax discount rate.

A provision for restructuring costs is recognised when a constructive obligation arises. Such an obligation is assumed to have arisen when the restructuring plan is approved and the implementation of the plan has begun or its main features are announced to those affected by it.

Contingent liabilities and contingent assets are not recognised. Contingent liabilities are disclosed unless the possibility of an economic settlement as a consequence of the obligation is remote. Contingent assets are disclosed where an economic settlement as a consequence of the asset is probable.

Other revenues and expenses

Revenues and expenses included in operating profit, but being of a non-recurring nature and material in relation to business segments, are reported on a separate line item in the income statement. Other revenues and expenses will normally include restructuring costs, material gains and losses on sale of property, plant and equipment or intangible assets, as well as gains or losses relating to sale of subsidiaries, joint ventures and associated companies.

Non-current assets held for sale

A non-current asset (or disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sales transaction rather than through continuing use.

A disposal group includes assets to be disposed of, by sale or otherwise, together in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction.

A non-current asset or a disposal group classified as held for sale is measured at the lower of carrying amount and fair value less costs to sell. Non-current assets classified as held for sale and non-current assets that are a part of a disposal group, are not depreciated.

Non-current assets and assets of a disposal group classified as held for sale is presented separately from other assets in the balance sheet. The liabilities of a disposal group classified as held for sale is presented separately from other liabilities in the balance sheet.

Discontinued operations

The results of discontinued operations are presented separately in the income statement. A component of the Group that is either disposed of or classified as held for sale, and represents a separate and major operation, is classified as discontinued operations.

The results of discontinued operations are presented separately from the period the operation is disposed of or classified as held for sale. Previous periodies are represented so that all items related to discontinued operations are presented separately from continuing operations for all periods presented.

Cash flow statement

The cash flow statement is prepared under the indirect method. Cash and cash equivalents include cash, bank deposits and other monetary instruments with a maturity of less than three months at the date of purchase.

Earnings per share

Earnings per share and diluted earnings per share is presented for ordinary shares. Earnings per share is calculated by dividing net income attributable to majority interests by the weighted average number of shares outstanding. Diluted earnings per share is calculated by dividing net income attributable to majority interests by the weighted average number of shares outstanding, adjusted for all dilutive potential shares. The dilutive effect is related to employee share options.

Dividends

Dividends are recognised as a liability at the date such dividends are appropriately approved by the company's shareholders' meeting.

IFRS AND IFRIC INTERPRETATIONS NOT YET EFFECTIVE

A number of new standards, amendments and interpretations are not yet effective for the year ended 31 December 2009, and have not been applied in preparing these consolidated financial statements.

The following standards, amendments and interpretations to existing standards, that may have an impact on the consolidated financial statements when implemented, have been published and are mandatory for the accounting periods beginning after 1 January 2010:

IFRS 3 Revised Business Combinations

The revised standard incorporates certain amendments, including allowing to choose whether goodwill should be attributed to minority interests or not. In addition, in business combinations achieved in stages, goodwill will be measured at the acquisition date only. Contingent considerations will be recognised at fair value and acquisition-related costs will be expensed as incurred.

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SCHIBSTED ANNUAL REPORT 2009

Amended IAS 27 Consolidated and Separate Financial Statements

Revised version of the standard which includes guidance on accounting for changes in ownership interests in subsidiaries without loss of control, loss of control of a subsidiary, and attribution of losses to minority interest even if this results in the minority interests having a deficit balance.

Amendment to IAS 39 Financial instruments - recognition and measurement

Additional guidance is given on how to apply the principle that a portion of cash flows and fair values is eligible for designation as hedged items.

NOTE 3: FINANCIAL RISK MANAGEMENT

Foreign exchange risk

Norwegian kroner are Schibsted's base currency, but the Group is through its business outside Norway also exposed to changes in other countries' exchange rates, mainly the Euro, Swedish kronor and Estonian kroons. Schibsted has foreign exchange exposure relating to both balance sheet monetary items and through net investments in foreign operations. Schibsted uses loans in foreign currencies and forward contracts to reduce the foreign exchange exposure. The Group's monetary items exposure is evident in note 27 Interest bearing borrowings and in note 23 Cash and cash equivalents. As at 31.12.2009 the Group had entered into several forward contracts involving the purchase and sale of currencies for this purpose.

Currency gains and losses relating to forward contracts which hedge net investments in foreign operations are recognised in equity until the foreign operation is disposed of. Other currency gains and losses are recognised in the income statement on an ongoing basis under Other financial income or expenses.

As at 31.12.2009 Schibsted had the following forward contracts, which all mature in 2010:

	Currency	Amount	NOK
Forward contracts, sale	SEK	482	390
Forward contracts, sale	EEK	239	127
Forward contracts, purchase	SEK	667	540

As at 31.12.2009 forward contracts for the sale of SEK 482 million are related to hedging net investments in foreign operations. The fair value of the contracts accounted for as hedges was NOK 0.3 million at 31.12.2009. The fair value of other forward contracts was NOK 1.7 million at 31.12.2009.

Cash flows in foreign currencies relating to investments or significant individual transactions are hedged by using financial instruments. At the year-end the Group had no such contracts. The Group's foreign exchange exposure relating to operations is low, since most of its cashflows take place in the individual business's own home currencies.

Schibsted follows a currency hedging strategy where net investments in foreign operations are hedged. The degree to which hedging is carried out was reduced throughout 2009 compared to earlier years due to Schibsted's desire to reduce the EUR-share of net interest-bearing debt. As of 31.12.2009 about 50% of the Group's net interest-bearing debt was in EUR. The rest of the Group's interest-bearing debt is in the form of interest-bearing loans and forward contracts denominated in NOK, SEK and EEK. The Group's interest-bearing debt is as a result of these changes better balanced with the cash flows in each of the currencies.

The sensitivity of exchange rate fluctuations is as follows: if the currency rate between NOK and EUR changes 1% compared to the actual rate as at 31.12.2009, the Group's interest-bearing debt (including currency derivatives) will change with about NOK 20 million. Correspondingly, a change in the exchange rate between NOK and SEK of 1% will result in a movement in the interest-bearing debt of around NOK 1 million. Interest rate movements will have a limited effect on Group profits since any change in value will be tied to instruments hedging the net foreign investments.

A change in exchange rates also affects the translation of net foreign assets to NOK. The equity effect of these changes are limited by the Group's currency hedging strategy, where changes in the value of net foreign assets are mitigated by changes in the value of the Group's foreign-denominated interest bearing debt and currency derivatives.

Interest rate risk

Schibsted has floating interest rates on its interest-bearing borrowings, see note 27 Interest-bearing borrowings and is thereby influenced by changes in the interest market. A change of 1 percentage point in the floating interest rate means a change in Schibsted's interest expenses of approximately NOK 30 million. A significant part of the Group's income is advertisement revenues, making the Group sensitive to macroeconomic fluctuations. Hence Schibsted will normally have good earnings in good markets (and be able to withstand higher interest rates) and lower earnings in bad markets (and benefit from lower interest rates).

Raw materials risk

Schibsted is a consumer of newsprint and is therefore exposed to price changes. A change in the price of 1% has an impact on raw materials costs for the Group of approximately NOK 8 million per year. This increase is higher than previous year due to the establishment of Media Norge. Newsprint prices in Norway, Sweden and Spain are negotiated annually with suppliers and have already been fixed for 2010.

Credit risk

The Group has recorded a low level of losses relating to trade receivables, see Note 22 Trade and other receivables.

There is a limited credit risk relating to the Group's circulation revenues since many of the Group's products are sold on the basis of prepayment (newspaper subscriptions). For parts of the Group's advertising revenue, deposit schemes and credit insurance have been established. For private advertisements online payment are to a large extent made by charging their credit cards when the advertisement is ordered. Net carrying amount of the Group's financial assets, except for equity instruments, represents maximum credit exposure, and the exposure is disclosed in note 18 Financial instruments by category. Exposure related to the Group's trade receivables is disclosed in note 22 Trade and other receivables.

Liquidity risk

Schibsted's long-term financing, which today includes two loan facilities and bank loans, should ensure that the Group has sufficient financial flexibility.

At the end of 2009 Schibsted has a long-term liquidity reserve of approximately NOK 3.4 billion and net interest-bearing debt is NOK 2,554 million. The liquidity reserve corresponds to approximately 26 per cent of the Group's turnover. The Group has a target that the aggregate liquidity reserve should be at least 10 per cent of the next 12 months' expected turnover.

As at 31.12.2009 Schibsted has two loan facilities, one facility of EUR 250 million and one of EUR 375 million (originally EUR 500 million), both maturing by the end of 2011. Schibsted is planning to refinance both facilities during 2010.

Schibsted's loan agreements contain financial covenants regarding the ratio of net interest-bearing debt (NIBD) to the operating profit before depreciation and amortization (EBITDA). The ratio shall not exceed 3.25 in 2010. Schibsted reported NIBD/ EBITDA of 1.7 per 31.12.2009 and is well within the accepted ratio.

Investment management

Schibsted has a placement policy whereby excess liquidity is used for loan repayments. Up until the due date the excess liquidity is temporarily placed in the cash pool, and at times in the short-term money market with banks the Group has credit facilities in.

53

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SCHIBSTED ANNUAL REPORT 2009

NOTE 4: USE OF ESTIMATES

In many areas the consolidated accounts are affected by estimates. Important areas in which the use of estimates has significant effect on carrying amounts and thus involve a risk of changes that could affect results in future periods are described below.

The valuation of intangible assets in connection with acquisitions and the testing of property, plant and equipment and intangible assets for impairment (see Note 15 Intangible assets and Note 16 Property, plant and equipment and investment property) will largely be based on estimated future cash flows. Correspondingly the expected useful lives and residual values included in the calculation of depreciation and amortisation will be based on estimates. The Group has activities within established media, but is also active in establishing positions at an early point in time in new media channels both through acquisitions and its own start-ups. Estimates related to future cash flows and the determination of discount rates to calculate present values are based on management's expectations on market developments, the competitive situation, technological developments, the ability to realise synergies, interest rate levels and other relevant factors. Such estimates involves uncertainty, and management's view, and the actual development in the matters referred to, may change over time. Changes in management's opinion and actual developments may lead to impairment losses in future periods.

The risk of changes in expected cash flows that affect the financial statements will naturally be higher in markets in an early phase and be more limited in established markets. Further, the risk of changes will be significantly higher in periods with uncertain macroeconomic prognosis.

Intangible assets that are not amortised are tested annually for impairment. Other assets are tested for impairment if there are indications that an asset is impaired. Such indications will typically be changes in market developments, the competitive situation and technological developments. In the same way, depreciation and amortisation schedules and any residual values are reviewed periodically.

Schibsted has in 2009 recognised impairment losses of NOK 137 million related to goodwill and other intangible assets. The most significant amounts are related to goodwill in Sesam Media in Norway as a result of the decision to close down the operation and impairment of other intangible assets in Sandrew Metronome in Sweden.

Note 15 Intangible assets shows the details on goodwill and other intangible assets.

In 2008 Schibsted recognised impairment loss of NOK 1,291 million related to goodwill in SCM Spain. Changes in significant assumptions used would have increased (decreased) recoverable amount (NOK million) at 31.12.2009 for this unit:

WACC	+1%	(482)
	(1%)	602
Sustained growth year 6 and forward	+1%	433
	(1%)	(347)

In 2009, none of these changes in assumptions would have resulted in further impairment losses related to SCM Spain.

Accounting for pension liabilities (note 26 Pension plans) requires that financial assumptions relating among others to the discount rate, expected salary increases, and expected increases in pensions and social security base are determined. Changes in assumptions affect the fair value of pension obligations, but will affect the consolidated income statement through amortisation only when accumulated actuarial gains or losses exceed 10% of the higher of pension obligations and plan assets.

An increase / decrease of the discount rate by 1 percentage point will reduce / increase the present value of defined benefit obligations by approximately 6%.

Financial instruments are measured at fair value. When no quoted market price is available, fair value is established using different valuation techniques.

Net present value of future acquisition price related to minority interest put options on shares in subsidiaries are recognised as debt (note 30 Financial liabilities related to minority interest put options). The liabilities are recognised using estimated value, and the estimate can be changed in future periods as the pricing is dependent upon future fair value and / or future results.

NOTE 5: SIGNIFICANT TRANSACTIONS

Purchase and sale of businesses in 2009

Schibsted has in 2009 invested NOK 22 million in connection with acquisitions of subsidiaries. The provisional allocation of the purchase price to assets acquired and liabilities assumed have resulted in recognition of goodwill and other intangible assets of NOK 27 million. Schibsted has in 2009 invested NOK 163 million related to increased ownership share in subsidiaries. The purchase of minority shares have resulted in recognition of goodwill and other intangible assets of NOK 202 million.

Investment related to increased ownership share in subsidiaries includes purchased of 1.24% of the shares in Finn.no. Furthermore, the ownership share of Aftonbladet Hierta AB is changed as the Swedish Confereration of Unions, with effect from 1. July 2009 has reduced its ownership share from owning 50.01% of the voting shares through preference shares with a fixed annual return, to owning 9% ordinary shares.

Schibsted has in addition paid EUR 67 million related to increase of the ownership share in Infojobs from 70.56% to 98.5%. The amount paid has reduced the previously recognised financial liability related to minority interest put options.

Media Norge was established on 25 June 2009. The group consists of the media houses Aftenposten, Bergens Tidende, Fædrelandsvennen and Stavanger Aftenblad, in addition to Finn.no (88.64% owned by Media Norge prior to sale of 38.63% to Schibsted). Schibsted owns 80.44% of Media Norge. Prior to establishing of Media Norge, Aftenposten and Finn.no were subsidiaries of Schibsted with ownership shares of 100% and 62%, respectively. Bergens Tidende, Fædrelandsvennen and Stavanger Aftenblad were associated companies of the Schibsted Group with ownership shares of 52.8%, 25.0% og 94.3%, respectively.

The establishing of Media Norge involves exchange of ownership positions that for Schibsted implies that former associated companies become subsidiaries, combined with increased ownership shares in some subsidiaries and reduced ownership shares in other subsidiaries. In the absence of cash transfers or quoted market prices, estimated fair value is applied when recognising new subsidiaries and changes in ownership shares as a consequence of the establishing. No gains or losses are recognised as a consequence of the establishing.

The table below shows the effect on the balance sheet of the Schibsted Group from the establishing, specified as:

• Carrying amounts of assets and liabilities in companies becoming subsidiaries of Schibsted as a consequence of the establishing.
• Fair value adjustments recognised (provisional) related to new subsidiaries and change in ownership shares of existing subsidiaries.
• Other adjustments, including the elimination of former carrying amounts of associated companies becoming subsidiaries.

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SCHIBSTED ANNUAL REPORT 2009

	Fair value		Other ad-justments	Effect Schibsted
	Carrying amounts	reconised
Goodwill	99	703	-	802
Other intangible assets	63	455	-	518
Property, plant and equipment	991	335	-	1 326
Investments in associated companies	9	13	(1 756)	(1 734)
Other non-current assets	275	-	(244)	31
Current assets	472	-	-	472
Total assets	1 909	1 506	(2 000)	1 415
Equity	844	1 149	(1 855)	138
Non-current liabilities	511	357	(106)	762
Current liabilities	554	-	(39)	515
Total equity and liabilities	1 909	1 506	(2 000)	1 415

Fair value adjustments related to intangible assets are related to trademarks, customer contracts / relations and software. Fair value adjustments related to property, plant and equipment are related to office buildings and printing plants.

Furthermore, increase of pension obligations and the effect of deferred taxes related to fair value adjustments of assets and liabilities are recognised.

If the establishing of Media Norge had taken place with effect from 1.1.2009, the Group's operating revenues would have increased by approximately NOK 966 million and net income would have decreased by approximately NOK 38 million.

Companies becoming subsidiaries following the establishing of Media Norway, contribute, for the period after the establishing, NOK 4 million to consolidated net profit.

Schibsted has in December 2009 increased its ownership share in Finn.no with 7.63% by purchasing 38.63% of the shares in Finn.no from Media Norge. After the completion of the transaction, Schibsted owns 80.1% of the shares in Finn.no.

Schibsted divested the subsidiaries SCM Italia Srl and Bolha in June 2009, Retriever AB in August 2009, Basefarm AS in November 2009, Teleadress Information AB and Kartago in December 2009. Total gain is NOK 83 million, see note 9 for further details on gain or loss per company.

Schibsted sold on 28 April 2009 100% of the shares of Metronome Film & Television AB. See note 6 Discontinued operations.

Schibsted entered on 30 March 2009 into a Total Return Swap (TRS) related to 23.1% of the shares of Aspiro. The entering into the contract implies that Schibsted's share of the voting power of Aspiro is reduced from 42.9% to 19.8%, while the financial interest remains with Schibsted. Until 30 March 2009, Schibsted's ownership interest in Aspiro was accounted for as an associated company. After that date, Schibsted's remaining ownership interest is accounted for as financial assets available for sale.

Schibsted entered on 11 June 2009 into a Total Return Swap (TRS) related to 36.3% of the shares of Polaris. The entering into the contract implies that Schibsted's share of the voting power of Polaris is reduced from 43.4% to 7.1%, while the financial interest remains with Schibsted. Until entering into the agreement, Schibsted's ownership interest in Polaris was accounted for as an associated company. After that date, Schibsted's remaining ownership interest is accounted for as financial assets available for sale.

The TRS agreements implies that Schibsted has financial assets and financial liabilities representing the rights and obligations Schibsted has towards the counterpart. The assets are in the balance sheet included in Current financial assets at NOK 476 million, and the liabilities are included in Other current liabilities at NOK 457 million. See note 19 Financial assets and note 29 Other current liabilities.

Purchase and sale of businesses in 2008

In 2008 Schibsted has invested NOK 1,001 million in shares, of which NOK 249 million is related to shares in subsidiaries. Investments in subsidiaries are accounted for in accordance with the purchase method and have given rise to excess values, mainly goodwill and intangible assets.

Schibsted acquired in May 2008 100% of the shares in Kapaza Holding for NOK 162 million. The entity operates the Belgian online classified site Kapaza.be. Allocation of the purchase price to assets acquired and liabilities assumed has resulted in recognition of goodwill of NOK 121 million, other intangible assets of NOK 55 million, and deferred taxes of NOK 14 million.

Schibsted has in addition made a number of minor acquisitions. In total, these acquisitions have resulted in recognition of goodwill of NOK 17 million, other intangible assets of NOK 6 million and deferred taxes of NOK 2 million. Schibsted has in 2008 invested NOK 70 million related to increased ownership interests in subsidiaries, mainly related to Finn Eiendom AS and Nettby AS.

Schibsted has in 2008 invested NOK 700 million in shares in associated companies, of which NOK 350 million is related to the acquisition of 19.76% of the shares in Stavanger Aftenblad ASA and NOK 316 million to the acquisition of 35% of the shares of Metro Nordic Sweden AB.

In March 2008, Schibsted sold the building in Akersgaten 55 in Oslo, the VG building, through a sale of 100% of the shares in Akersgaten 55 AS for NOK 1,196 million. The gain on the sale was NOK 843 million and is included in Other revenues and expenses, see note 9. Leaseback agreements is entered into related to parts of the building, implying that, after the disposal, the Group's operating profit before income from associated companies, impairment loss and other revenues and expenses, on an annual basis, will be reduced by approximately NOK 60 million.

Aftonbladet closed in May 2008 down the free newspaper Punkt SE. This operation has had a negative effect on the Group's operating profit before income from associated companies, impairment loss and other revenues and expenses of SEK 75 million in 2008 and SEK 198 million in 2007. See note 9 regarding costs related to the closing down.

Polaris Media ASA was established in October 2008 through a merger of Adresseavisen ASA and Harstad Tidende Gruppen AS. Prior to the merger, Schibsted had a 35.65% ownership interest in Adresseavisen ASA (associated company) and a 78.96% ownership interest in Harstad Tidende Gruppen AS (subsidiary). Schibsted's ownership interest in Polaris Media ASA is 43.4% and the investment was accounted for as an associated company. A gain of NOK 40 million was recognised related to the reduction in ownership interest related to Harstad Tidende Gruppen AS, see note 9 Other revenues and expenses.

Purchase and sale of businesses in 2007

In 2007 Schibsted has invested NOK 1,160 million in shares. Investments in subsidiaries are accounted for in accordance with the purchase method and have given rise to excess values, mainly goodwill and intangible assets.

Through its subsidiary Metronome Film & Television AB, Schibsted acquired on 15 May 2007 100% of the shares in Stockholm-Köpenhamn Produktion AB for NOK 52 million. Excess values resulting from the acquisition are allocated to goodwill (NOK 38 million) and intangible assets (NOK 13 million). In addition to the purchase price, an additional amount might be paid in 2011 based on the earnings of the company in the period up until 2011.

On 28 September 2007, Schibsted bought Endemol Finance BV's share of 35% in Metronome Film & Television AB for NOK 122 million. The transaction gave rise to a goodwill of NOK 51 million. Excess values attributable to identifiable assets are charged directly to equity with NOK 23 million. After the completion of the transaction, Schibsted owns 100% of the shares in Metronome Film & Television AB.

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SCHIBSTED ANNUAL REPORT 2009

During 2007 Schibsted has bought 7,624 shares in Harstad Tidende for a total of NOK 42 million. The transaction gave rise to a goodwill of NOK 7 million. The block of shares constitutes 27.49% of the total share capital in the company. The transaction has increased Schibsted's ownership stake from 51.45% to 78.94%.

In addition to the above Schibsted made several smaller acquisitions in 2007.

Amounts allocated to goodwill will mainly relate to the acquired companies' market position, work force and synergies with the Group's other activities.

In connection with material acquisitions, Schibsted is using the expertise of external consultants when the valuation of assets and liabilities is performed.

In February Schibsted and SPIR Communications made an agreement to merge parts of the French operations of Schibsted Classified Media (previously Trader Classified Media) with the French online car portal Caradisiac, which is owned by SPIR. The execution of the agreement implied approval by the French competition authorities. Their approval was given in September. The merged company is owned 50% by Schibsted and 50% by SPIR and is included as a joint venture. The transaction did not give material accounting effects for Schibsted.

In February Schibsted sold all its 1,039,560 shares in Asker og Bærums Budstikke ASA for NOK 46 million. The block of shares constituted an ownership of 10.1%. The purchasers were Asker og Bærums Budstikke ASA, 1,030,000 shares, and Stiftelsen Magnus Blikstads Stipendiefond, 9,560 shares. The accounting gain for Schibsted was NOK 25 million and is included in financial income, see note 13 Financial income and expenses.

In 2006 Scanpix Scandinavia and Bonnier sold 20% each in the joint venture Scanpix Sweden to Tidningarnas Telegrambyrå AB (TT). At the same time, TT obtained a right, but not an obligation, to buy the remaining 60% of the shares in the company for SEK 75 million during the period from entering the agreement until 15 days after a draft for the 2006 annual account was available. This option was exercised in its entirety in February 2007 and led to an accounting gain of NOK 21 million. The gain is included in Other revenues and expenses, see note 9.

In March Schibsted sold an office building in Apotekergaten 10 in Oslo for NOK 334 million. The accounting gain for Schibsted came to NOK 198 million, and is included in Other revenues and expenses, see note 9.

In the period from May to July Schibsted acquired 3,055,438 shares in Stavanger Aftenblad for a total price of NOK 716 million. The block of shares constituted 42.21% of the total share capital in the company. Schibsted's shareholdings after the purchase is 5,424,078 shares, equivalent to 74.57% of the shares in the company.

In November Schibsted sold an office building in Jenagade 22 in Copenhagen, Denmark for DKK 110 million. The accounting gain for Schibsted was NOK 72 million. The gain is allocated to continued operations (NOK 8 million), see note 9 Other revenues and expenses, and to discontinued operations (NOK 64 million), see note 6 Discontinued operations.

NOTE 6: DISCONTINUED OPERATIONS

Schibsted sold on 28 April 2009 100% of the shares of Metronome Film & Television AB. The result for Metronome Film & Television AB is with effect from 2009, and with effect for previous periods, presented in a separate line in the consolidated income statement as Discontinued operations.

Net income discontinued operations consist of:

(NOK million)	2009	2008	2007
Operating revenues	258	889	865
Raw materials, work in progress and finished goods	(170)	(617)	(624)
Personnel expenses	(44)	(124)	(130)
Depreciation and amortisation	(9)	(28)	(26)
Other operating expenses	(23)	(64)	(65)
Operating profit before impairment loss and other revenues and expenses	12	56	20
Other revenues and expenses	-	-	40
Operating profit (loss)	12	56	60
Financial income	-	2	3
Financial expenses	-	(2)	(5)
Profit (loss) before taxes	12	56	58
Taxes related to profit (loss)	(5)	(17)	(2)
Gain on sale	323	-	-
Tax related to gain on sale	(3)	-	-
Net income discontinued operations	327	39	56

Net income discontinued operations is in its entirety related to net income attributable to majority interests.

Earnings per share discontinued operations (NOK)	3.93	0.60	0.84
Diluted earnings per share discontinued operations (NOK)	3.93	0.60	0.84

NOTE 7: EVENTS AFTER THE BALANCE SHEET DATE

A new law regarding Agreement-based pension (AFP) in Norway was approved on 19 February 2010. Schibsted has accounted for the old AFP-plan as a defined benefit plan. Net benefit expense for 2010 may be affected by recognition of a gain (loss) related to curtailment and settlement of obligations recognised related to the old AFP-plan in relation to employees being comprised by the new AFP-plan. The new AFP-plan is a defined benefit multi-employer plan, but if sufficient information is not available, it will be accounted for as if it were a defined contribution plan. It is uncertain when sufficient information may be available, and reliable estimates of gain (loss) related to curtailment and settlement of the old plan does not exist. Therefore, at the date of the approval of these financial statements, it is not possible to quantify the potential effect of the changes in the AFP-plan on net benefit expense for 2010.

NOTE 8: SEGMENT INFORMATION

Schibsted reports three operating segments; Norway, Sweden and International.

Segment Norway includes the media houses VG and Media Norge and the Group's publishing operations. Media Norge comprises the media houses Aftenposten, Bergens Tidende, Stavanger Aftenblad and Fædrelandsvennen, and the Norwegian classified ads operation Finn.no.

Segment Sweden comprises the media houses Aftonbladet and Svenska Dagbladet, and a portfolio of internet based growth companies (Schibsted Tillvaktmedier). In addition, the filmcompany Sandrew Metronome is included.

Segment International comprises the Group's classified ads operations except for Finn.no, and the Group's international editorial operations.

Holding comprises the Group's headquarter Schibsted ASA and its centralised finance function, Schibsted Finans AS.

Eliminations comprise inter-segment sales. Transactions between segments are made on normal commercial terms.

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SCHIBSTED ANNUAL REPORT 2009

The division into operating segments correspond to internal reporting to the chief operating decision maker, defined as the President and CEO. The division reflects an allocation based partly on kind of operation and partly on geographical location.

Schibsted uses Operating profit as measure of profit or loss for each segment.

Financial statement items allocated to segments are shown below:

2009	Norway	Sweden	International	Holding	Eliminations	Schibsted Group
Subscription revenues	938	377	111	-	-	1 426
Casual sales revenues	1 535	1 334	102	-	-	2 971
Advertising revenues	2 910	1 303	2 128	-	-	6 341
Other revenues	1 053	657	295	2	-	2 007
Total external revenues	6 436	3 671	2 636	2	-	12 745
Internal revenues	63	21	69	34	(187)	-
Total revenues	6 499	3 692	2 705	36	(187)	12 745
Operating expenses	(5 470)	(3 416)	(2 242)	(243)	187	(11 184)
Depreciation and amortisation	(289)	(147)	(222)	(4)	-	(662)
Income from associated companies	(80)	14	(1)	-	-	(67)
Impairment loss	(83)	(50)	(28)	-	-	(161)
Other revenues and expenses	(76)	(99)	(27)	(34)	-	(236)
Operating profit (loss)	501	(6)	185	(245)	-	435
Assets	15 757	3 162	6 454	4 561	(14 714)	15 220
Of which investments in associated companies	120	287	4	-	-	411
Liabilities	(6 278)	(3 140)	(10 523)	(4 719)	14 714	(9 946)
Investments	195	83	108	4	-	390
2008
Subscription revenues	729	375	103	-	-	1 207
Casual sales revenues	1 462	1 402	208	-	-	3 072
Advertising revenues	2 855	1 447	2 450	-	-	6 752
Other revenues	917	638	262	3	-	1 820
Total external revenues	5 963	3 862	3 023	3	-	12 851
Internal revenues	71	4	30	33	(138)	-
Total revenues	6 034	3 866	3 053	36	(138)	12 851
Operating expenses	(5 054)	(3 603)	(2 614)	(287)	138	(11 420)
Depreciation and amortisation	(245)	(133)	(212)	(2)	-	(592)
Income from associated companies	13	(72)	(14)	-	-	(73)
Impairment loss	(12)	(228)	(1 318)	-	-	(1 558)
Other revenues and expenses	777	(80)	(215)	-	-	482
Operating profit (loss)	1 513	(250)	(1 320)	(253)	-	(310)
Assets	9 401	4 493	7 514	6 242	(11 259)	16 391
Of which investments in associated companies	2 246	479	18	-	-	2 743
Liabilities	(4 476)	(1 768)	(11 478)	(6 187)	11 259	(12 650)
Investments	218	182	200	3	-	603
2007
Subscription revenues	716	376	93	-	-	1 185
Casual sales revenues	1 466	1 386	258	-	-	3 110
Advertising revenues	2 922	1 297	2 560	-	-	6 779
Other revenues	905	526	239	1	-	1 671
Total external revenues	6 009	3 585	3 150	1	-	12 745
Internal revenues	69	2	22	19	(112)	-
Total revenues	6 078	3 587	3 172	20	(112)	12 745
Operating expenses	(4 989)	(3 464)	(2 643)	(193)	112	(11 177)
Depreciation and amortisation	(256)	(107)	(195)	(2)	-	(560)
Income from associated companies	140	11	(2)	-	-	149
Impairment loss	(25)	(5)	(3)	-	-	(33)
Other revenues and expenses	222	(81)	(79)	-	-	62
Operating profit (loss)	1 170	(59)	250	(175)	-	1 186
Assets	5 660	2 974	8 129	4 612	(5 384)	15 991
Of which investments in associated companies	1 751	221	29	-	-	2 001
Liabilities	(2 380)	(1 191)	(7 944)	(4 897)	5 384	(11 028)
Investments	210	186	223	-	-	619

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SCHIBSTED ANNUAL REPORT 2009

Information about products and services

Operating revenues (NOK million)	2009	2008	2007
Printed newspapers	8 355	8 608	9 146
Online newspapers	1 014	874	774
Classified/directories	2 676	2 449	1 921
Live pictures	466	512	477
Others	234	408	427
Total	12 745	12 851	12 745

Operating revenues include government grants (press subsidies Sweden) totalling NOK 55 million in 2009, NOK 64 million in 2008 and NOK 57 million in 2007. In addition barter agreements are included with NOK 101 million in 2009, NOK 73 million in 2008 and NOK 61 million in 2007.

Information about geographical areas

In presenting geographical information, operating revenues are based on the location of group companies. There are no significant differences between the attribution of operating revenues based on the location of group companies and an attribution based on the customers' location. Non-current assets are attributed on the geographical location of the assets.

Operating revenues (NOK million)	2009	2008	2007
Norway	6 452	5 939	5 940
Sweden	3 915	4 086	3 839
Baltics	610	695	648
Other Europe	1 687	2 037	2 204
Other countries	81	94	114
Total	12 745	12 851	12 745
Non-current assets (NOK million)	2009	2008	2007
---	---	---	---
Norway	3 932	4 093	3 760
Sweden	929	1 675	1 757
Baltics	420	452	397
Other Europe	4 823	5 634	6 095
Other countries	80	159	161
Total	10 184	12 013	12 170

Non-current assets comprise assets excluding financial instruments, expected to be recovered more than twelve months after the reporting period.

NOTE 9: OTHER REVENUES AND EXPENSES

Operating revenues and expenses that are of a non-recurring nature and are of material importance to the business segments are separated from other ordinary operating revenues and expenses and reported in a separate line in the income statement.

Other revenues and expenses include:	2009	2008	2007
Restructuring costs Norway	(122)	(105)	(22)
Restructuring costs Sweden	(142)	(75)	(81)
Restructuring costs International	(21)	(127)	(75)
Restructuring costs Holding	(34)	-	-
Gain on sale of property, plant and equipment and investment property	-	843	206
Gain (loss) on sale of subsidiaries, joint ventures and associated companies	83	(59)	21
Other	-	5	13
Total	(236)	482	62

2009

Restructuring costs amount to NOK 319 million in 2009. Schibsted introduced in 2008 a profitability programme including several types of measures applying to more or less all companies in the group. The measures include, among other, a considerable reduction in the number of employees and reduction in or terminations of products and operations. Of the 2009 restructuring costs NOK 211 million relates to personnel expenses, NOK 58 million to pension expenses, NOK 31 million to termination of printing contracts and NOK 19 million related to other costs.

Gain (loss) on sale of subsidiaries of NOK 83 million relates to sale of Bolha of NOK 4 million, Retriever of NOK 41 million, Teleadress Information of NOK 43 million, Basefarm of NOK 11 million, Kartago of NOK -6 million and SChf Italy of NOK -10 million.

2008

Restructuring costs in Norway relate to severance pay concerning downsizing costs in Aftenposten of NOK 79 million, Agreement-based pension (AFP) in VG of NOK 16 million, write-downs of inventory and downsizing costs in Schibsted Forlag of NOK 10 million.

In Sweden, restructuring costs of NOK 59 million related to the closure of Punkt SE have been booked, as well as 22 million related to severance pay in Svenska Dagbladet.

Restructuring costs in business area International are mainly related to the restructuring of the print operations of Schibsted Classified Media in Spain of NOK 125 million.

During the 1st quarter, Schibsted divested the building in Akersgaten 55 with an accounting gain of NOK 843 million.

A gain of NOK 40 million related to the divestment of Harstad Tidende is booked, as well as a provision of NOK 94 million related to Schibsted Classified Media in Italy.

2007

Restructuring of the search operations in Schibsted Søk in Norway has been undertaken. One-off costs of NOK 17 million were mainly related to severance pay. The remaining NOK 5 million of the restructuring costs in Norway are related to the downsizing programme that VG implemented in 2006. The costs for 2007 relate to Agreement-based pension (AFP).

The restructuring costs in Sweden relate to early retirement pensions in Aftonbladet newspaper.

Restructuring costs International relate to restructuring within Schibsted Classified Media

The sale of the main office in Apotekergaten 10 resulted in a gain of NOK 198 million in the 2nd quarter. In the 4th quarter the sale of an office building in Jenagade 22 in Copenhagen gave a gain of NOK 8 million.

During the 1st quarter Schibsted sold the joint venture Scanpix Sweden with an accounting gain of NOK 21 million.

NOTE 10: RAW MATERIALS, WORK IN PROGRESS AND FINISHED GOODS

Raw materials, work in progress and finished goods consist of:

	2009	2008	2007
Raw materials and purchased goods	1 083	1 161	1 323
TV / Film production expenses	251	309	270
Total	1 334	1 470	1 593

NOTE 11: PERSONNEL EXPENSES AND SHARE-BASED PAYMENT

Personnel expenses consist of:
	2009	2008	2007
Salaries and wages	3 294	3 419	3 184
Social security costs	716	687	710
Net pension expense (note 26)	349	278	265
Share-based payment	5	8	8
Other personnel expenses	169	198	141
Total	4 533	4 590	4 308
Number of man-years	7 957	8 689	8 973

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SCHIBSTED ANNUAL REPORT 2009

Details of salary, bonus and other benefits provided to group management and board of directors in 2009 (in NOK 1 000):

Name:	Salary incl. holiday pay (paid 2009)	Bonus	Other benefits	Pension cost	Loan outstanding
Rolv Erik Ryssdal	2 445	580	221	1 333	800
Kjell Aarnot	3 129	248	268	1 451	800
Trond Berger	2 326	184	181	1 410	800
Camilla Jarlsby	1 267	104	121	399	400
Jan Erik Knarbakk	1 940	154	170	957	-
Birger Magnus	2 499	198	172	1 462	-
Sverre Munck	2 378	184	197	1 351	370
Cathrine Foss Stene	1 402	117	147	841	-
Gunnar Strömblad	2 722	227	129	2 851	-

Loans to group management have no instalments, and interest rate is 1% lower than government set benchmark interest rate.

Rolv Erik Ryssdal entered the job as group chief executive officer at June 1, 2009. Kjell Aarnot resigned from the position at the same date. He will keep his economical benefits until early retirement age of 62 years, which is September 7, 2012. Birger Magnus resigned from his position as manager at August 15, 2009. His employment at Schibsted ended at February 15, 2010. Termination payment period is 18 months from that date. Jan Erik Knarbakk resigned from his position as manager at August 15, 2009. He will continue working in Schibsted until early retirement age of 60 years, which is May 31, 2012.

Bonus

Schibsted's Group management has a bonus programme that is linked to the achievement of targets. The bonus for the accounting year 2009 will be calculated and paid in June 2010. The Bonus limit is four to six months' salary. The bonus is divided in two parts, with one related to financial targets and one to strategic themes. The criteria are part of a total evaluation.

Termination payment schemes

The group chief executive officer's termination payment equals 18 months' salary

in addition to the six-month period of notice. Curtailment of the termination payment apply if other remuneration is received within the last 12 months of the termination-pay period. Executive vice presidents have termination-pay schemes which provide 18 months' salary in addition to the six-month period of notice. Other members of Group management and senior executives normally have termination-pay schemes of 6-18 months' salary, depending on the level of their position. Competition restrictions and curtailments will apply during the termination-pay period. The Chairman of the Board has no special remuneration scheme that applies if he resigns.

Pension schemes

The group's chief executive officer is entitled and, if Schibsted so requires, obliged to retire at the age of 62 years. His full annual early retirement pension is 66 per cent of his pensionable earnings. The retirement pension solution means that, when he reaches 67 years of age, the group chief executive officer will receive a retirement pension for life which equals 66 per cent of his pensionable earnings. He is entitled to a disability pension of 66 per cent of his pensionable earnings. The spouse/cohabitant pension is 50 per cent of his pensionable earnings and the child pension is 15 per cent of his pensionable earnings.

The Norwegian executive vice presidents are entitled and, if Schibsted so requires, obliged to retire at the age of 62 years. Should the parties agree, they can retire at the age of 60 years. During the period leading up to the ordinary retirement age (67 years), they will receive a pension that is 66 per cent of their fixed salary. The pension will be reduced if they have been with the group for less than 10 years. The right to an early retirement pension lapses if the executive vice president resigns from his position or is dismissed by the company due to a fundamental breach/summary dismissal. Full annual retirement/disability pension for the Norwegian executive vice presidents is 66 per cent of their fixed salary. Other members of the group management have different pension schemes within the limit of benefits to the Norwegian executive vice presidents. The executive vice president based in Sweden has a defined benefit pension insurance on a level with the Norwegian executive vice presidents.

Members of the Board and Committees:	Board remuneration*†	Committees remuneration	Other benefits	Board remuneration from other group companies	Total remuneration
Ole Jacob Sunde, chairman of the Board and the Compensation Committee	660	65	7	-	732
Karl-Christian Agerup, member of the Board and the Audit Committee	315	-	-	70	385
Monica Caneman, member of the Board and chairman of the Audit Committee	309	100	-	74	483
Marie Ehrling, member of the Board and the Compensation Committee	315	38	-	-	353
Christian Ringnes, member of the Board and the Audit Committee	260	60	-	-	320
Eva Lindqvist, member of the Board and the Compensation Committee	315	38	-	-	353
Anne-Lise Mørch von der Fehr, employee representative in the Board	-	-	-	-	-
Gunnar Kagge, employee representative in the Board	-	-	-	-	-
Frank Johan Johansen, deputy employee representative in the Board	-	-	-	-	-
Arve Jakobsen, deputy employee representative in the Board	-	-	-	-	-
Hege Lyngved Odinsen, deputy employee representative in the Board	-	-	-	-	-
Øystein Simensen, deputy employee representative in the Board	-	-	-	-	-
Lars A. Christensen, chairman of the Election Committee	-	150	-	-	150
Gunn Wærsted, member of the Election Committee	-	60	-	-	60
Nils Bastiansen, member of the Election Committee	-	70	-	-	70
Former members :
Cato A. Holmsen, member of the Audit Committee	-	60	-	70	130
Audun Solberg, employee representative in the Board	265	-	1	-	266
Berit Simenstad, employee representative in the Board	265	-	1	-	266
Per Syversen, deputy employee representative in the Board	35	-	-	-	35
Hilde Kristin Mork, deputy employee representative in the Board	35	-	-	-	35
Berit Bjerg, deputy employee representative in the Board	35	-	-	-	35
Håkon Rene Bach Mikkelsen, deputy employee representative in the Board	35	-	-	-	35
Total	2 044	641	9	214	3 708

*) Board remunerations include special fee to directors who do not live in Oslo. 20% of the Board remunerations is linked to attendance.

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SCHIBSTED ANNUAL REPORT 2009

Auditor
Fees to the group's auditors for the fiscal year 2009 were as follows:

(NOK 1 000 excl. VAT)	Audit services	Other attest services	Tax advisory services	Other non-audit services	Total
Schibsted group
Ernst & Young	11 979	1 878	779	2 165	16 801
Other auditors	4 299	112	851	1 196	6 458
Total	16 278	1 990	1 630	3 361	23 259

Schibsted ASA

Ernst & Young	990	1 415	277	-	2 682

Share-based payment

At the end of 2009, Schibsted's option programme included 14 persons.

The development in the number of options outstanding has been as follows:

	2009	2008	2007
Outstanding 1 January	662 500	632 500	566 250
Granted	150 000	180 000	190 000
Exercised	-	(12 500)	(123 750)
Expired and forfeited	(230 000)	(137 500)	-
Outstanding 31 December	582 500	662 500	632 500
Of which fully vested	292 500	426 667	453 333

Outstanding options as at 31 December 2009 have the following terms:

Expiry date	Exercise price (NOK)	Number of options
31 December 2010	179.40	147 500
31 December 2011	302.10	145 000
24 June 2013	166.70	140 000
7 October 2014	64.10	150 000

The maximum gain per share that a manager can achieve when exercising the options is equal to 1.460375 multiplied with the exercise price per share.

The Board of Directors will propose to the Annual General Meeting in 2010 an adjustment of the value dilution that occurs as a consequence of the rights issue that Schibsted carried out during the summer 2009. The adjustment will be proposed according to the Derivatives rules of Oslo Stock Exchange, for the options allotted in 2009 and in previous years.

No options have been exercised during 2009. Total exercise price for options exercised in 2008 was NOK 2.0 million. The fair value of the shares at the time of execution was NOK 3.0 million. In 2007 the total exercise price for options exercised was NOK 12.5 million while the fair value of the shares at the time of execution was NOK 31.1 million.

Below is presented options granted and options outstanding for managers included in the option programme:

	Opening balance 1.1.2009	Granted 2009	Expired and forfeited during 2009	Ending balance 31.12.2009	Average exercise price*	Average maturity
Rolv Erik Ryssdal	30 000	30 000	7 500	52 500	129.00	3.6
Kjell Aamot	120 000	-	40 000	80 000	222.00	2.0
Trond Berger	60 000	15 000	15 000	60 000	178.00	2.8
Sverre Munck	60 000	15 000	15 000	60 000	178.00	2.8
Gunnar Strömblad	52 500	15 000	7 500	60 000	178.00	2.8
Jan Erik Knarbakk	60 000	-	15 000	45 000	216.00	2.2
Birger Magnus	60 000	-	30 000	30 000	241.00	1.5
Bernt Olufsen	30 000	7 500	7 500	30 000	178.00	2.8
Lena K. Samuelsson	30 000	7 500	7 500	30 000	178.00	2.8
Raoul Grünthal	22 500	7 500	-	30 000	178.00	2.8
Hans Erik Matre	30 000	-	7 500	22 500	216.00	2.2
Cathrine Foss Stene	7 500	7 500	-	15 000	115.00	4.1
Jan Helin	7 500	7 500	-	15 000	115.00	4.1
Torry Pedersen	7 500	7 500	-	15 000	115.00	4.1
Olav Mugaas	17 500	-	10 000	7 500	220.00	1.3
Camilla Jarlsby	-	7 500	-	7 500	64.00	4.8
Mats Eriksson	-	7 500	-	7 500	64.00	4.8
Erik Hjelmstedt	-	7 500	-	7 500	64.00	4.8
Gunilla Asker	-	7 500	-	7 500	64.00	4.8
Carl Gyllfors	30 000	-	30 000	-	-	-
Mats Alders	15 000	-	15 000	-	-	-
Kristin Skogen Lund	15 000	-	15 000	-	-	-
Aslak Ona	7 500	-	7 500	-	-	-
Total	662 500	150 000	230 000	582 500

• Average exercise price for options in stock at the end of the year.

Determination of fair value of options

The fair value of options granted in the period is calculated using the Black-Scholes' model for option pricing. The fair value in 2009 is calculated at NOK 4.0 million (2008: NOK 6.6 million and 2007: NOK 14.4 million).

Several factors have been used in the pricing model that affects the fair value of options granted. The following assumptions have been used in the calculation:

	2009	2008	2007
Price when granted	96.3	166.7	302.1
Exercise price	64.1	166.7	302.1
Option's duration	5 years	4 years	4 years
Risk-free interest rate	3.6%	5.5%	5.3%
Volatility	30.0%	30.0%	30.0%

Volatility is a statistical measure of price fluctuations and thus describes the probability that an option in the underlying share will have a value. Expected volatility is measured as standard deviation on the share's daily returns for the last three years. Employees in the Group are given the opportunity each year to buy shares to value of NOK 7,500 at a 20% discount through Schibsted Employees' Share Purchase Scheme.

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SCHIBSTED ANNUAL REPORT 2009

NOTE 12: OTHER OPERATING EXPENSES

Other operating expenses consist of:

	2009	2008	2007
Distribution	1 170	1 106	988
Commissions	892	935	1 035
Rent, maintenance, office expenses and energy	452	499	447
PR, advertising and campaigns	653	662	659
Printing contracts	556	650	739
Editorial material	310	298	279
Professional fees	405	400	371
Travelling expenses	193	230	180
Other operating expenses	649	544	586
Total	5 280	5 324	5 284

NOTE 13: FINANCIAL ITEMS

Financial income and financial expenses consist of:

	2009	2008	2007
Interest income	33	79	45
Net foreign exchange gains	169	-	1
Gain on the sale of financial assets available for sales	1	4	41
Dividends received	1	2	1
Other financial income	2	3	2
Total financial income	206	88	90
Interest expenses	(280)	(360)	(284)
Net fair value loss on interest rate swap at fair value through profit or loss	-	(10)	-
Net foreign exchange losses	-	(43)	-
Impairment loss financial assets available for sale	(43)	(82)	(2)
Impairment loss loans and receivables	-	(8)	-
Other financial expenses	(39)	(15)	(20)
Total financial expenses	(362)	(518)	(306)
Net foreign exchange gain (losses) consist of:	2009	2008
---	---	---
Net foreign exchange gain (losses) on receivables and borrowings	47	(17)
Net fair value gain (loss) on forward contracts through profit or loss	122	(26)
Net foreign exchange gain (losses) on receivables and borrowings	169	(43)

Net foreign exchange gains are mainly related to reductions in foreign currency debt (borrowings and forward contracts). As a consequence of impairment losses on goodwill recognised in 2008, forward contracts and borrowings corresponding to the impaired amount, was reclassified from being hedging instruments for net investments in foreign operations, for which foreign exchange gains or losses are recognised in equity, to being forward contracts and borrowings for which foreign exchange gains or losses are recognised in profit or loss. Strengthening of NOK during the period of 2009 used to gradually converting these forward contracts and borrowings to NOK, resulted in a significant positive effect on net income.

Financial income and expenses include the following amounts of interest income and interest expense related to financial assets and liabilities that is not included in the catheory Financial assets or financial liabilities at fair value through profit or loss:

	2009	2008
Interest income	26	48
Interest expenses	(275)	(360)

NOTE 14: TAXES

The Group's income tax charge comprises the following:

	2009	2008	2007
Current income taxes	137	166	269
Deferred income taxes	184	(283)	70
Effect of hedge accounting foreign currency recognised in equity	(219)	303	(48)
Taxes	102	186	291
Of which included in taxes continuing operations	94	169	289
Of which included in taxes discontinued operations (note 6)	8	17	2

The Group's effective tax rate differs from the nominal tax rate in countries where the Group has operations. The Group's effective tax rate is arrived at as follows:

	2009	2008	2007
Profit (loss) before taxes (continuing operations)	279	(740)	970
Profit (loss) before taxes discontinued operations	12	56	58
Gain on sale discontinued operations	323	-	-
Total profit (loss) before taxes	614	(684)	1 028
Estimated tax charge based on nominal tax rate in Norway	172	(192)	288
Tax effect income associated companies	19	20	(42)
Tax effect impairment loss goodwill	20	376	-
Tax effect other permanent differences	(91)	(44)	26
Change in unrecognised deferred tax assets	(24)	125	28
Effect of tax rate differential abroad	6	3	(9)
Effect of changes in tax rates	(2)	(32)	-
Effect of adjustments recognised related to prior periods	2	(70)	-
Taxes	102	186	291
Of which included in taxes continuing operations	94	169	289
Of which included in taxes discontinued operations (note 6)	8	17	2

Permanent differences include, in addition to non-deductible expenses, tax-free gains on sale of shares and non-deductible impairment losses related to shares. Such gains are included in Other revenue and expenses with regard to gains on the sale of subsidiaries and associated companies and in Financial income with regard to gains on the sale of shares categorised as Shares available for sale. Impairment losses related to shares are included in Financial expenses.

The Group's net deferred tax liabilities (assets) are made up as follows:

	2009	2008	2007
Current items	(31)	(64)	(31)
Pension liabilities	(439)	(239)	(207)
Other non-current items	985	730	673
Unused tax losses	(474)	(711)	(407)
Calculated net deferred tax liabilities (assets)	41	(284)	28
Unrecognised deferred tax assets	277	444	286
Net deferred tax liabilities (assets) recognised	318	160	314
Of which deferred tax liabilities	552	674	508
Of which deferred tax assets	(234)	(514)	(194)

Changes in calculated deferred tax liabilities (assets) related to pension liabilities and other non-current items are mainly a consequence of consolidation of new subsidiaries following the establishing of Media Norge. The Group's unused tax losses are mainly related to operations in Norway, Sweden, France and Spain. The majority of the tax losses can be carried forward for an unlimited period. Only approximately 10% of the unused tax losses expire in the period up until 2019.

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SCHIBSTED ANNUAL REPORT 2009

The development in the recognised net deferred tax liabilities (assets) is as follows:

	2009	2008	2007
As at 1 January	160	314	338
Change included in tax charge	184	(283)	70
Change on purchase and sale of subsidiaries	40	29	(74)
Translation differences	(66)	100	(20)
As at 31 December	318	160	314

Deferred tax assets are recognized when it is likely that the benefit can be realized through expected future taxable profits. The Group's deferred tax assets recognized are mainly related to pension liabilities and unused tax losses in Norwegian operations, and to unused tax losses in Sweden and Spain. The Group's unrecognized deferred tax assets are mainly related to operations abroad where the utilization must be against the operation's own future taxable profits.

Deferred tax liabilities and assets are offset for liabilities and assets in companies which are included in local tax groups.

NOTE 15: INTANGIBLE ASSETS

	Goodwill	Other intangible assets	Total
1 January – 31 December 2007
Net carrying amount 1.1.2007	5 762	2 287	8 049
Additions	-	244	244
Additions on purchase of businesses	698	33	731
Disposals	-	(10)	(10)
Disposals on sale of businesses	(199)	(126)	(325)
Reclassification	(15)	15	-
Amortisation for the year	-	(247)	(247)
Impairment losses	(8)	(25)	(33)
Translation differences	(235)	(81)	(316)
Net carrying amount 31.12. 2007	6 003	2 090	8 093

As at 31 December 2007

Cost	6 478	2 783	9 261
Accumulated amortisation and impairment losses	(475)	(693)	(1 168)
Net carrying amount	6 003	2 090	8 093

1 January – 31 December 2008

Net carrying amount 1.1.2008	6 003	2 090	8 093
Additions	-	283	283
Additions on purchase of businesses	257	71	328
Disposals	-	(27)	(27)
Disposals on sale of businesses	(24)	(2)	(26)
Reclassification	-	10	10
Adjustment put option	(713)	-	(713)
Amortisation for the year	-	(287)	(287)
Impairment losses	(1 388)	(170)	(1 558)
Translation differences	1 147	367	1 514
Net carrying amount 31.12. 2008	5 282	2 335	7 617

As at 31 December 2008

Cost	7 270	3 551	10 821
Accumulated amortisation and impairment losses	(1 988)	(1 216)	(3 204)
Net carrying amount	5 282	2 335	7 617
	Goodwill	Other intangible assets	Total
---	---	---	---
1 January – 31 December 2009
Net carrying amount 1.1.2009	5 282	2 335	7 617
Additions	-	170	170
Additions on purchase of businesses	1 019	530	1 549
Disposals	-	(2)	(2)
Disposals on sale of businesses	(308)	(50)	(358)
Reclassification	-	9	9
Adjustment put option	(264)	-	(264)
Amortisation for the year	-	(324)	(324)
Impairment losses	(80)	(57)	(137)
Translation differences	(708)	(330)	(1 038)
Net carrying amount 31.12. 2009	4 941	2 281	7 222

As at 31 December 2009

Cost	6 703	3 751	10 454
Accumulated amortisation and impairment losses	(1 762)	(1 470)	(3 232)
Net carrying amount	4 941	2 281	7 222

Other intangible assets include:

	Expected useful life	Carrying amount 31 December
		2009	2008	2007
Trademarks	Indefinite	1 724	1 536	1 159
Trademarks	Finite	188	204	233
Film rights	Finite	-	132	263
Data systems and licenses	Finite	296	339	249
Customer relations	Finite	73	124	186
Total		2 281	2 335	2 090

Trade marks with an indefinite expected useful life have been acquired through acquisitions and are expected to generate cash flows over an indefinite period of time.

Intangible assets with a finite expected useful life are as a general rule amortised on a straight line basis over the expected useful life. Film rights are amortised on a declining basis or in accordance with another systematic method depending on what is considered to best reflect the expected pattern of future economic benefits embodied in the relevant asset. The amortisation period of intangible assets are 1.5-10 years. The amortisation method, expected useful life and any residual value is assessed annually.

Goodwill can be specified on companies as follows:

	Business area	2009	2008	2007
Media Norge	Norway	624	-	-
Finn	Norway	281	-	-
Schibsted Forlag AS	Norway	55	56	56
Dine Penger AS	Norway	61	62	62
Basefarm AS	Norway	-	85	85
Sesam Media AS	Norway	-	51	51
Aftonbladet Hierta AB	Sweden	272	186	174
Metronome Film & Television	Sweden	-	192	134
Hitta.se/TA Teleadress Holding AB	Sweden	109	127	116
Blocket AB	International	373	416	390
20 Min Holding AG	International	119	127	102
AS Eesti Meedia	International	175	153	161
Schibsted Classified Media	International	2 752	3 512	4 383
Other	Norway	26	132	96
Other	Sweden	91	140	175
Other	International	3	43	18
Total		4 941	5 282	6 003

Schibsted has in 2009 recognised impairment losses of NOK 137 million related to goodwill and other intangible assets. The most significant amounts are related to goodwill in Sesam Media in Norway as a result of the decision to close down the

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SCHIRSTED ANNUAL REPORT 2009

operation and impairment of other intangible assets in Sandrew Metronome in Sweden.

As a consequence of adverse development in profitability the consolidated income statement was in 2008 charged with an impairment loss of goodwill of NOK 1 388 million and NOK 170 million relating to other intangible assets. NOK 1 291 million of the goodwill impairment loss relates to SCM Spain in the Group's international segment and NOK 48 million to Sandrew Metronome in the Group's Sweden segment. The impairment loss on other intangible assets is related to Sandrew

Metronome. In 2007 the consolidated income statement was charged with NOK 5 million relating to impairment loss on goodwill in Aftonbladet Allt Om AB, and NOK 3 million in the Lithuanian newspaper LT.

Recoverable amount of the cash-generating units were estimated based on value in use. Expected cash flows in 2009 are discounted using a pre-tax discount rate (WACC) from 9.4% to 13.4%. In determining WACC, risk-free interest rate and risk premiums for the relevant country and the specific operation, is taken into account.

NOTE 16: PROPERTY, PLANT AND EQUIPMENT AND INVESTMENT PROPERTY

	Buildings and land	Investment properties	Construction in progress	Machinery	Equipment, furniture, and similar assets	Total
1 January – 31 December 2007
Net carrying amount 1.1.2007	871	139	24	750	425	2 209
Additions	6	-	80	50	239	375
Additions on purchase of businesses	-	-	-	-	3	3
Disposals	(118)	-	-	-	(13)	(131)
Disposals on sale of businesses	(33)	(14)	-	-	(3)	(50)
Reclassification	(184)	(123)	(12)	2	5	(312)
Depreciation for the year	(50)	-	-	(98)	(191)	(339)
Translation differences	(1)	(2)	(1)	(3)	(28)	(35)
Net carrying amount 31.12. 2007	491	-	91	701	437	1 720
As at 31 December 2007
Cost	786	-	94	1 413	1 363	3 656
Accumulated depreciation and impairment losses	(295)	-	(3)	(712)	(926)	(1 936)
Net carrying amount	491	-	91	701	437	1 720
1 January – 31 December 2008
Net carrying amount 1.1.2008	491	-	91	701	437	1 720
Additions	39	-	42	9	230	320
Additions on purchase of businesses	-	-	-	-	1	1
Disposals	(1)	-	-	-	(19)	(20)
Disposals on sale of businesses	(27)	-	-	(85)	(14)	(126)
Reclassification	32	-	(132)	100	(10)	(10)
Depreciation for the year	(42)	-	-	(102)	(189)	(333)
Translation differences	(11)	-	15	23	36	63
Net carrying amount 31.12. 2008	481	-	16	646	472	1 615
As at 31 December 2008
Cost	782	-	16	1 431	1 569	3 798
Accumulated depreciation and impairment losses	(301)	-	-	(785)	(1 097)	(2 183)
Net carrying amount	481	-	16	646	472	1 615
1 January – 31 December 2009
Net carrying amount 1.1.2009	481	-	16	646	472	1 615
Additions	11	-	2	10	197	220
Additions on purchase of businesses	764	63	-	345	156	1 328
Disposals	(5)	-	-	(7)	(9)	(21)
Disposals on sale of businesses	(10)	-	-	-	(164)	(174)
Reclassification	-	-	(9)	-	-	(9)
Depreciation for the year	(46)	-	-	(100)	(201)	(347)
Impairment losses	(1)	-	-	(2)	(21)	(24)
Translation differences	(10)	-	(2)	(31)	(23)	(66)
Net carrying amount 31.12. 2009	1 184	63	7	861	407	2 522
As at 31 December 2009
Cost	1 514	63	7	1 725	1 326	4 635
Accumulated depreciation and impairment losses	(330)	-	-	(864)	(919)	(2 113)
Net carrying amount	1 184	63	7	861	407	2 522

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SCHIBSTED ANNUAL REPORT 2009

Investment properties and property, plant and equipment, excluding land, are depreciated on a straight line basis over their estimated useful lives. Depreciation schedules reflects the asset's residual value. Items of property, plant and equipment where material costs components can be identified with different useful lives are depreciated over the individual components expected useful life.

Depreciation is calculated over the estimated useful lives: Buildings (25-50 years), Plant and machinery (5-20 years), Equipment, furniture and similar assets (3-10 years). The depreciation method, expected useful life and any residual value are reviewed annually.

Non-current assets held for sale

Non-current assets classified as held for sale in 2007 relates to office building in Akersgaten 55. The property was sold in 2008, see note 5.

Investment properties

The Group have one property at 31.12.2009 classified as investment property. This property is an unused property reserve in Stavanger with a carrying amount of NOK 63 million.

In 2007 the Group had two properties that were classified as investment properties. One of the properties (Jenagade 22 in Copenhagen), was sold in 2007, see note 5 Significant transactions. The other property (Akersgaten 55 in Oslo) was in 2007 reclassified to non-current assets held for sale.

Lease agreements

Property, plant and equipment includes assets owned under financial lease agreements. These have a cost of NOK 12 million and a carrying amount of NOK 0 million. Depreciation for the year amounts to NOK 4 million.

Schibsted has lease obligations relating to off-balance sheet operating assets, mainly office buildings.

Future minimum payments under non-cancellable operational leases are as follows:

	2009
Within one year	309
Between one and five years	1 124
More than five years	186

NOTE 17: INVESTMENTS IN ASSOCIATED COMPANIES

The development in the carrying amount of investments in associated companies is as follows:

	2009	2008	2007
Carrying amount 1 January	2 743	2 001	1 164
Additions	38	849	768
Disposals	(2 196)	(12)	(1)
Income from associated companies	(67)	(73)	149
Dividends received	(37)	(109)	(70)
Translation differences	(52)	33	(18)
Other changes	(18)	54	9
Carrying amount 31 December	411	2 743	2 001

Disposals in 2009 include NOK 1 770 million being the effect of establishing Media Norge, whereby Bergens Tidende, Stavanger Aftenblad and Fædrelandsvennen changed from being associated companies to being subsidiaries, see Note 5 Significant transactions. Further is included NOK 416 million being the effect of entering into Total Return Swaps related to Aspiro and Polaris, whereby these investments changed from being associated companies to being financial assets available for sale, see note 5 Significant transactions and note 19 Financial Assets.

Income from associated companies and carrying amount breaks down as follows:

	Location	Ownership% 31.12.2009	Income			Carrying amount
			2009	2008	2007	2009	2008	2007
Adresseavisen ASA	Trondheim	-	-	16	32	-	-	170
Aspiro AB	Stockholm	-	(2)	(82)	8	-	113	187
Bergens Tidende AS	Bergen	-	(17)	7	56	-	633	646
Fædrelandsvennen AS	Kristiansand	-	(4)	6	13	-	55	57
Metro Nordic Sweden AB	Stockholm	35	9	5	-	304	339	-
Polaris Media ASA	Trondheim	-	(4)	(8)	-	-	340	-
Stavanger Aftenblad AS	Stavanger	-	(56)	(10)	34	-	1 179	859
Other			7	(7)	6	107	84	82
Total			(67)	(73)	149	411	2 743	2 001

The Group's share of assets, liabilities, operating revenues and net income in associated companies is as follows:

	2009	2008	2007
Assets	563	3 838	2 893
Liabilities	(152)	(1 095)	(892)
Carrying amount	411	2 743	2 001
Operating revenues	1 243	2 108	1 759
Net income	(67)	(73)	149

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SCHINSTED ANNUAL REPORT 2009

NOTE 18: FINANCIAL INSTRUMENTS BY CATEGORY

Classification of the Group's financial assets and liabilities:

	Note	Balance as of 31.12.09	Financial assets and liabilities at fair value through profit or loss *	Loans and receivables	Financial assets available for sale	Other financial liabilities	Non-financial instruments
Deferred tax assets	14	234	-	-	-	-	234
Intangible assets	15	7 222	-	-	-	-	7 222
Property, plant and equipment and investment property	16	2 522	-	-	-	-	2 522
Investments in associated companies	17	411	-	-	-	-	411
Non-current financial assets	19	217	-	-	217	-	-
Other non-current assets	20	246	-	217	-	-	29
Inventories	21	138	-	-	-	-	138
Trade and other receivables	22	2 490	-	2 172	-	-	318
Current financial assets	19	485	-	-	485	-	-
Cash and cash equivalents	23	1 255	-	1 255	-	-	-
Total assets		15 220	-	3 644	702	-	10 874
Deferred tax liabilities	14	552	-	-	-	-	552
Pension liabilities	26	1 567	-	-	-	-	1 567
Non-current interest-bearing borrowings	27	3 405	-	-	-	3 405	-
Other non-current liabilities	28	111	-	-	-	109	2
Current interest-bearing borrowings	27	404	-	-	-	404	-
Income tax payable		71	-	-	-	-	71
Other current liabilities	29	3 836	2	-	-	3 834	-
Total liabilities		9 946	2	-	-	7 752	2 192
	Note	Balance as of 31.12.08
Deferred tax assets	14	514	-	-	-	-	514
Intangible assets	15	7 617	-	-	-	-	7 617
Property, plant and equipment and investment property	16	1 615	-	-	-	-	1 615
Investments in associated companies	17	2 743	-	-	-	-	2 743
Non-current financial assets	19	122	-	-	122	-	-
Other non-current assets	20	81	-	43	-	-	38
Inventories	21	164	-	-	-	-	164
Trade and other receivables	22	2 781	1	2 678	-	-	102
Current financial assets	19	7	-	-	7	-	-
Cash and cash equivalents	23	747	-	747	-	-	-
Total assets		16 391	1	3 468	129	-	12 793
Deferred tax liabilities	14	674	-	-	-	-	674
Pension liabilities	26	861	-	-	-	-	861
Non-current interest-bearing borrowings	27	5 418	-	-	-	5 418	-
Other non-current liabilities	28	137	-	-	-	101	36
Current interest-bearing borrowings	27	726	-	-	-	726	-
Income tax payable		255	-	-	-	-	255
Other current liabilities	29	4 579	103	-	-	4 476	-
Total liabilities		12 650	103	-	-	10 721	1 826
	Note	Balance as of 31.12.07
Deferred tax assets	14	194	-	-	-	-	194
Intangible assets	15	8 093	-	-	-	-	8 093
Property, plant and equipment and investment property	16	1 720	-	-	-	-	1 720
Investments in associated companies	17	2 001	-	-	-	-	2 001
Non-current financial assets	19	155	-	-	155	-	-
Other non-current assets	20	82	-	39	-	-	43
Inventories	21	123	-	-	-	-	123
Trade and other receivables	22	2 466	10	2 096	-	-	360
Current financial assets	19	3	-	-	3	-	-
Cash and cash equivalents	23	842	-	842	-	-	-
Non-current assets held for sale	16	312	-	-	-	-	312
Total assets		15 991	10	2 977	158	-	12 846

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SCHIBITED ANNUAL REPORT 2009

(...Continued from previous page)	Note	Balance as of 31.12.07	Financial assets and liabilities at fair value through profit or loss *	Loans and receivables	Financial assets available for sale	Other financial liabilities	Non-financial instruments
Deferred tax liabilities	14	508	-	-	-	-	508
Pension liabilities	26	744	-	-	-	-	744
Non-current interest-bearing borrowings	27	757	-	-	-	757	-
Other non-current liabilities	28	1 557	-	-	-	1 508	49
Current interest-bearing borrowings	27	4 206	-	-	-	4 206	-
Income tax payable		193	-	-	-	-	193
Other current liabilities	29	3 063	5	-	-	2 486	572
Total liabilities		11 028	5	-	-	8 957	2 066

• Fair value on financial assets and liabilities at fair value through profit or loss are based on quoted prices in active markets.

The fair value of the Group's financial derivatives are as follows:

	Assets			Liability
	2009	2008	2007	2009	2008	2007
Forward contracts	-	1	10	2	93	-
Interest and currency swap	-	-	-	-	10	5
Total	-	1	10	2	103	5

NOTE 19: FINANCIAL ASSETS

The development in carrying amount of investments categorised as available for sale is as follows:

	2009	2008	2007
As at 1 January	129	158	159
Additions	11	68	69
Disposals	(36)	(8)	(96)
Change by acquisition or disposal of subsidiaries	19	1	-
Reclassified to/from associated companies or subsidiaries	416	(4)	(1)
Changes in fair value
Change recognised in equity	207	(3)	54
Change recognised in profit or loss	(43)	(82)	(2)
Value change from equity on disposals	-	(4)	(25)
Translation differences	(1)	3	-
As at 31 December	702	129	158
Of which current	485	7	3
Of which non-current	217	122	155

The Group has the following financial assets:

	2009	2008	2007
Shares
Listed Scandinavia	614	-	-
Listed Canada	-	-	10
Listed France	-	17	-
Unlisted	88	105	145
Current interest-bearing securities	-	7	3
Total financial assets	702	129	158

The amounts above include shares in Polaris and Aspiro held under Total Return Swaps where Schibsted has the financial interest, but no voting rights related to the underlying shares. See note 5 Significant transactions.

NOTE 20: OTHER NON-CURRENT ASSETS

Other non-current assets consist of:

	2009	2008	2007
Loans to joint ventures and associated companies	1	6	9
Prepaid costs	29	38	43
Other receivables	216	37	30
Total	246	81	82

There are no significant differences between the fair value and the carrying amount of non-current loans to joint ventures and associated companies and other receivables as the receivables are carrying a market interest rate.

NOTE 21: INVENTORIES

Inventories consist of:

	2009	2008	2007
Books	47	51	57
Newsprint purchased	55	75	39
DVDs and publication rights	36	38	27
Total	138	164	123

In 2009 the write-down of inventories to net realisable value amounted to NOK 1 million, in 2008 to NOK 16 million and 2007 to NOK 0 million. Inventories carried at fair value less cost to sell was as of 31.12.2009 NOK 2 million, as of 31.12.2008 NOK 33 million and NOK 0 as of 31.12.2007.

NOTE 22: TRADE AND OTHER RECEIVABLES

Trade receivables and other receivables consist of:

	2009	2008	2007
Trade receivables	1 766	1 859	1 877
Less provision for impairment of trade receivables	(76)	(87)	(71)
Trade receivables (net)	1 690	1 772	1 806
Prepaid expenses and accrued revenues	239	421	360
Financial derivatives (note 18)	-	1	10
Other receivables	561	587	290
Total	2 490	2 781	2 466

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SCHIBSTED ANNUAL REPORT 2009

Movements on the Group's provision for impairment of trade receivables are as follows:

	2009	2008
As at 1 January:	(87)	(71)
Provision for receivables impairment	(62)	(63)
Receivables written off during the year as un-collectible	50	42
Used amounts reversed	4	5
Disposal on sale of group companies	8	-
Translation differences	11	-
As at 31 December:	(76)	(87)

The carrying amount of trade and other receivables are considered to represent a reasonable approximation of fair value.

As at 31.12.2009, trade receivables of NOK 421 million were past due but not impaired. As at 31.12.2008, trade receivables of NOK 495 million were past due but not impaired. These receivables relate to a number of independent customers in different locations. The aging analysis of these trade receivables are as follows:

	2009	2008
Up to 90 days	368	405
More than 90 days	53	90
Total	421	495

NOTE 23: CASH AND CASH EQUIVALENTS

	2009	2008	2007
Cash and bank	1 255	747	842

The carrying amounts of the Group's cash and cash equivalents are denominated in the following currencies:

	2009	2008
NOK	772	(13)
SEK	242	343
DKK	11	9
EUR	127	317
EEK	40	66
Other	63	25
Sum	1 255	747

Carrying amount of cash and bank deposits are considered to represent a reasonable approximation of fair value.

Schibsted has a multicurrency cash pool system with Danske Bank in which almost all the Nordic subsidiaries are included. The cash pool has been established to optimize liquidity management for Schibsted.

The Group has an overdraft facility under the cash pool system of NOK 400 million. At the end of 2009 nothing was drawn on this limit.

Excess liquidity is mainly placed on the Group account or in the short-term money market. Bank deposits with subsidiaries outside the Nordic countries are deposited at local banks.

The deposit and borrowing interest rates in Danske Bank are based on Danske BID and Danske BOR. Danske BID and Danske BOR are set daily by the bank on the basis of market interest rates in the individual countries. Under the group account system marginal netting takes place between different countries.

Other bank deposits are credited with interest based on the bank's daily deposit rates in the individual countries.

Of the Group's cash and cash equivalents NOK 8 million are considered to be restricted as of 31.12.2009.

NOTE 24: EARNINGS PER SHARE

The development in share capital and other paid-in capital is set out in the Statement of changes in equity. The development in the number of issued and outstanding shares is as follows:

	Number of shares
	Outstanding	Treasury shares	Issued
As at 1 January 2007	66 876 378	2 373 622	69 250 000
Purchase of treasury shares	(1 016 900)	1 016 900	-
Sale of treasury shares	155 186	(155 186)	-
As at 31 December 2007	66 014 664	3 235 336	69 250 000
Purchase of treasury shares	(1 495 450)	1 495 450	-
Sale of treasury shares	70 145	(70 145)	-
As at 31 December 2008	64 589 359	4 660 641	69 250 000
Purchase of treasury shares	(39 500)	39 500	-
Rights issue	38 753 615	-	38 753 615
As at 31 December 2009	103 303 474	4 700 141	108 003 615

The Group's share capital consists of 108,003,615 shares of NOK 1 par value. No shareholder may own or vote at a shareholders' meeting for more than 30% of the shares.

The Annual Shareholders' Meeting has given the Board authority to acquire own shares up to 6,925,000 shares (10%). The authority was renewed at the Annual Shareholders' Meeting on 15 May 2009 for a period until the Annual Shareholders' Meeting in 2010. At the Annual Shareholders' Meeting on 12 May 2010 the Board will present a resolution to extend the authorisation for the Board to purchase and dispose of up to 10% of the share capital in Schibsted ASA according to the Norwegian public limited liability companies act under the conditions evident from the notice of the Annual Shareholders' Meeting.

In 2007 Schibsted purchased 1,016,900 shares for an aggregate consideration of NOK 274 million.

Schibsted sold 155,186 own shares in 2007. 123,750 shares were sold to managers in the Group in connection with the exercise of options. Of these shares, 105,000 where sold at a price of NOK 98 and 18,750 at a price of NOK 120. 31,436 shares were sold to Schibsted Employees' Share Purchase Scheme in 2007 at a price of NOK 302 in connection with an offer to employees to purchase shares at a discounted price.

In 2008 Schibsted purchased 1,495,450 shares for an aggregate consideration of NOK 230 million.

In 2008 Schibsted has sold 70,145 own shares. 12,500 shares were sold to managers in the Group in connection with the exercise of options. Of these shares, 7,500 where sold at a price of NOK 151 and 5,000 at a price of NOK 179. It is referred to the Board of Directors' declaration regarding the determination of salary and other remuneration to managers of Schibsted ASA for a description of the option programme. 57,645 shares were sold to Schibsted Employees' Share Purchase Scheme in 2008 at a price of NOK 117 in connection with an offer to employees to purchase shares at a discounted price.

In 2009 Schibsted acquired 39,500 treasury shares. The increase is related to Schibsted shares owned by Bergens Tidende AS when establishing Media Norge.

In July 2009 Schibsted carried out a rights issue where 38,753,615 new shares were subscribed. The subscription price was NOK 34 and the total subscription amount came to NOK 1,318 million. Rights issue costs after taxes came to NOK 66 million.

As at 31.12.2009 Schibsted held 4,700,141 treasury shares. The background to the purchases is that the Board of Directors has considered the repurchase of shares as advantageous compared to alternative investments and in order to optimise the capital structure of the Group. Parts of the shares are acquired in order to be used in connection with the employee share programmes.

87

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SCHIBITED ANNUAL REPORT 2009

During the first quarter of 2010 the company has neither bought nor sold treasury shares. The holding as at 22 March 2010 was 4,700,141 shares.

Earnings per share is calculated on net income (loss) attributable to majority interests divided by the average number of shares outstanding:

	2009	2008	2007
Net income (loss) attributable to majority interests	395	(906)	635
Average number of shares outstanding	83 256 121	64 969 763	66 718 726
Earnings per share (NOK)	4.74	(13.95)	9.52

Earnings per share continuing operations is calculated on net income (loss) continuing operations attributable to majority interests divided by average number of shares outstanding.

	2009	2008	2007
Net income (loss) continuing operations attributable to majority interests	68	(945)	579
Average number of shares outstanding	83 256 121	64 969 763	66 718 726
Earnings per share continuing operations (NOK)	0.81	(14.55)	8.68

Diluted earnings per share are calculated on the net income (loss) attributable to majority interests divided by the average number of shares outstanding, adjusted for the dilutive effect of all potential shares.

The dilutive effect is estimated as the difference between the number of shares which can be acquired on exercise of outstanding options and the total number of shares which could be acquired at fair value (calculated as the average price of the Schibsted share in the period) for the consideration which is to be paid for the shares which can be acquired based on outstanding options.

	2009	2008	2007
Net income (loss) attributable to majority interests	395	(906)	635
Average number of shares outstanding	83 256 121	64 969 763	66 718 726
Adjustment for dilutive effect options outstanding	6 949	18 035	206 030
Average number of shares outstanding (diluted)	83 263 070	64 987 798	66 924 756
Diluted earnings per share (NOK)	4.74	(13.94)	9.49

Diluted earnings per share continuing operations is calculated on net income/(loss) continuing operations attributable to majority interests divided by the average number of shares outstanding, adjusted for the dilutive effect of all potential shares.

	2009	2008	2007
Net income (loss) continuing operations attributable to majority interests	68	(945)	579
Average number of shares outstanding	83 256 121	64 969 763	66 718 726
Adjustment for dilutive effect options outstanding	6 949	18 035	206 030
Average number of shares outstanding (diluted)	83 263 070	64 987 798	66 924 756
Diluted earnings per share continuing operations (NOK)	0.81	(14.54)	8.65

Earnings per share - adjusted is calculated from the net income (loss) attributable to majority interests corrected for items reported in the income statement on the line items other revenues and expenses and impairment loss, adjusted for taxes, minority share and discounted operations. The number of shares that is included in the calculation is the same as the number for Earnings per share and Diluted earnings per share, as described above.

	2009	2008	2007
Net income (loss) attributable to majority interests	395	(906)	635
Other revenues and expenses	236	(482)	(62)
Impairment loss	161	1 558	33
Tax and minority effect of other revenues and expenses and impairment loss	(104)	11	(12)
Other revenues and expenses in discontinued operations	-	-	(40)
Gain on sale (after taxes) of discontinued operations	(320)	-
Net income attributable to majority interests - adjusted	368	181	554
Average number of shares outstanding	83 256 121	64 969 763	66 718 726
Earnings per share - adjusted (NOK)	4.42	2.79	8.31
Average number of shares outstanding (diluted)	83 263 070	64 987 798	66 924 756
Diluted earnings per share - adjusted (NOK)	4.42	2.79	8.28

NOTE 25: DIVIDENDS

Dividends were not paid in 2009. In 2008 and 2007 dividends were paid with the amounts of NOK 390 million (NOK 6.00 per share) and NOK 334 million (NOK 5.00 per share).

At the company's Annual Shareholders' Meeting on 12 May 2010 a dividend of NOK 1.50 per share will be proposed (total NOK 155 million). No provision for this dividend has been recognised in the Group's balance sheet as at 31.12.2009.

NOTE 26: PENSION PLANS

Schibsted has collective pension plans with Storebrand Livsforsikring AS for its employees in Norwegian companies. The plans were transferred from Vital Forskring ASA with transfer of risk at December 30, 2007. These plans are mainly established as defined benefit plans, but certain companies have established defined contribution plans. The companies in Norway are obligated to follow the Act on Mandatory company pensions. The companies' pension schemes meet the requirements of that Act. The policies relating to defined benefit plans in the respective companies are virtually uniform. The main terms are a 30-year period of employment to obtain full pension, approximately 66% retirement pension level from 67 years, and spouse and child pensions. As at 31.12.2009 the collective pension schemes covered approximately 2,950 working members and approximately 1,550 pensioners.

Estimated pension premiums for the above mentioned plans in 2010 is approximately NOK 125 million.

In addition to the pension obligations that are covered through collective service pension schemes, the Group's Norwegian companies have unfunded pension liabilities. The pensions relate to persons not included in the collective pension plans, supplemental pensions for salaries above 12G, Agreement-based pension (AFP), early retirement pensions as well as disability pensions for the companies which do not have insured disability pensions.

The Group's companies outside Norway have pension plans in accordance with local practice and local legislation. A significant part of the Group's pension schemes in Sweden are established in multi-employer plans. These multi-employer plans are defined benefit plans, but the Group does not have access to the necessary information for the accounting years 2009, 2008 and 2007 in order to recognise these plans as benefit plans in the financial statements, and in accordance with IAS 19.30 the plans have been accounted for as defined contribution plans. Approx. 30% in 2009, approx. 31% in 2008 and approx. 65% in 2007 of the costs reported under Benefit expense defined contribution plans relate to such multi-employer plans.

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SCHIBSTED ANNUAL REPORT 2009

The amounts recognised in profit or loss are as follows:

	2009	2008	2007
Current service cost	179	122	135
Interest cost	141	123	113
Expected return on plan assets	(132)	(109)	(99)
Actuarial gains or losses recognised	2	4	2
Past service cost	57	89	5
Net benefit expense defined benefit plans	247	229	156
Benefit expense defined contribution plans	160	118	96
Net benefit expense	407	347	252
Of which included in Personnel expenses (note 11)	349	278	265
Of which included in Other revenues and expenses	58	69	(13)

The amounts recognised in the balance sheet are as follows:

	2009	2008	2007
Present value of funded defined benefit obligations	3 246	2 497	2 171
Fair value of plan assets	(2 798)	(2 007)	(1 858)
Present value (net of plan assets) of funded defined benefit obligations	448	490	313
Present value of unfunded defined benefit obligations	826	611	415
Unrecognised actuarial gains or losses	293	(240)	16
Net defined benefit obligation	1 567	861	744
Social security tax included in present value of defined benefit obligations	157	135	89

Changes in present value of defined benefit obligations are as follows:

	2009	2008	2007
Present value of defined benefit obligations at January 1	3 108	2 586	2 660
Current service cost	179	122	135
Interest cost	141	123	113
Actuarial gains or losses	(642)	375	(141)
Benefits paid	(114)	(95)	(186)
Past service cost	57	89	5
Acquisition and disposal of operations	1 343	(92)	-
Present value of defined benefit obligations at December 31	4 072	3 108	2 586
Experience adjustments	(282)	110
Effects of changes in actuarial assumptions	(360)	265
Actuarial gains or losses	(642)	375

Experience adjustments are the effects of differences between previous actuarial assumptions and what has actually occurred.

Changes in fair value of plan assets are as follows:

	2009	2008	2007
Fair value of plan assets at January 1	2 007	1 858	1 888
Expected return on plan assets	132	109	99
Actuarial gains or losses	(102)	87	(84)
Contributions by employer	65	72	119
Benefits paid	(59)	(48)	(164)
Acquisition and disposal of operations	755	(71)	-
Fair value of plan assets at December 31	2 798	2 007	1 858

Actuarial gains or losses are entirely attributable to experience adjustments.

The following principal assumptions have been used in calculating net pension expenses and the net pension obligations for the Group's defined benefit plans:

	Pension expense			Pension obligation
	2009	2008	2007	31.12. 2009	31.12. 2008	31.12. 2007
Discount rate	4.00%	5.00%	4.50%	4.50%	4.00%	5.00%
Expected return on plan assets	5.70%	6.00%	5.50%	-	-	-
Expected salary increases	4.00%	4.50%	4.50%	4.25%	4.00%	4.50%
Expected social security base adjustment	3.75%	4.25%	4.25%	4.00%	3.75%	4.25%
Expected pension increases	1.75%	2.25%	1.60%	1.50%	1.75%	2.25%
Use of agreement based pension (AFP)	15.00%	15.00%	15.00%	15.00%	15.00%	15.00%
Demographic assumption mortality rate	K2005	K2005	K1963	K2005	K2005	K2005

The Group's plan assets have the following composition as at 31.12.:

	2009	2008	2007
Shares	16%	9%	25%
Short-term bonds	34%	40%	22%
Money market investments	23%	22%	7%
Real estate	14%	17%	16%
Long-term bonds	8%	-	28%
Hedgefund	2%	4%	-
Other	3%	8%	2%
Total	100%	100%	100%

The actual return on plan assets (value-adjusted return in relevant of portfolio of assets) was approximately 5.4% in 2009, approximately -0.5% in 2008 and approximately 9% in 2007.

NOTE 27: INTEREST-BEARING BORROWINGS

The Group has the following composition and maturity structure on its interest-bearing borrowings:

	Current			Non-current
	2009	2008	2007	2009	2008	2007
Overdraft	-	-	5	-	-	-
Commercial Paper issues	300	500	1 300	-	-	-
Bank loans	6	80	2 837	3 372	5 352	747
Financial lease agreements	2	-	6	13	-	1
Other loans	96	146	58	20	66	9
Total	404	726	4 206	3 405	5 418	757
Maturity between 1 and 2 years				3 127	88	71
Maturity between 2 and 5 years				157	4 974	410
Maturity beyond 5 years				121	356	276
Total				3 405	5 418	757

Almost all of the Group's interest-bearing debt is at floating interest rates. For information on interest rate risk, see note 3 Financial risk management. The interest rate periods relating to the Group's borrowings are between 1 and 6 months.

Schbsted re-negotiated the terms of the Group's loan facilities and other bank loans in the autumn of 2009. The current terms of the Group's interest bearing borrowings as of 31.12.2009 has been reviewed and compared to the market pricing at year's end and the carrying value is considered to represent a reasonable approximation to fair value.

Carrying amount in NOK million of interest-bearing debt breaks down as follows by currency:

	2009	2008	2007
NOK	1 384	703	1 531
SEK	303	316	5
EEK	8	11	8
EUR	2 114	5 114	3 394
USD	-	-	25
Total	3 809	6 144	4 963

The Group has a EUR bank loan of EUR 13 million. The loan, from 2004, follows a repayment schedule with installments twice a year and final maturity is in 2014. The interest terms on the loan is six month Euribor with the addition of a margin.

The Group has a bank loan of NOK 202 million. The loan has a term of 12 years from 2007 and the interest terms are six month NIBOR with the addition of a margin. The loan has a repayment schedule with installments twice a year. The first installment is in 2012.

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SCHIBSTED ANNUAL REPORT 2009

In December 2005 the Group arranged a new syndicated multi-currency loan facility for a total of EUR 250 million, syndicated to eight Norwegian and international banks. The facility is a 5-year drawing facility with an option to extend for a further one year. The option has been exercised and the final maturity of the facility is in December 2011. The facility was drawn with EUR 85 million as of year-end 2009. The facility has interest terms based on Euribor plus a margin. Schibsted must pay a commitment fee to maintain the facility's availability. The commitment fee is calculated as a percentage of the loan margin, on the un-drawn part of the facility.

In October 2008 the Group entered into a new 3-year multi currency loan facility with a total of EUR 500 mill. The facility is drawn as a club-facility where five Nordic banks provide the financing. After the rights issue in 2009, Schibsted decided to reduce the facility limit to EUR 375 million. EUR 287 million was drawn on the facility as of 31.12.09. The interest terms are based in Euribor with the addition of a margin. Schibsted must pay a commitment fee to maintain the availability of the facility. The commitment fee is calculated as a percentage of the loan margin, on the un-drawn part of the facility.

The Group has issued loans in the Norwegian Commercial Paper Market since March 2007. At the end of 2009 outstanding loan amounted to NOK 300 million.

Other loans consist mainly of liabilities relating to a factoring agreement in a joint venture.

Schibsted's loan agreements contain financial covenants regarding the ratio of net interest-bearing debt (NIBD) to operating profit before depreciation and amortisation (EBITDA). The reported ratio was well within the financial covenants as at 31.12.2009. See note 3 Financial risk management – Liquidity risk.

The Group has provided guarantees of NOK 16 million. Mortgage debt amounts to NOK 58 million, which is Schibsted's share of mortgage debt in a joint venture. Carrying amount of assets pledged as security is NOK 58 million.

Schibsted has available long-term credit facilities totalling approximately NOK 2.1 billion through the unutilised drawing right on the loan facility of EUR 250 million and EUR 375 million. In addition, Schibsted has short-term credit facilities of NOK 400 million in the form of unutilised overdraft limits under the Group's cash pool with Danske Bank, see Note 23 Cash and cash equivalents.

NOTE 28: OTHER NON-CURRENT LIABILITIES

Other non-current liabilities includes:
	2009	2008	2007
Financial liability related to minority interest put options (note 30)	64	-	1 465
Provision for other obligations	-	-	17
Contingent consideration business combinations	2	47	4
Other post-employment benefits	2	36	32
Other non-current liabilities	43	54	39
Total other non-current liabilities	111	137	1 557

Some business combination agreements includes contingent consideration requirements based on uncertain future events, usually financial performance. The estimated future consideration is recognised as liabilities. As at December 31, 2008 NOK 47 million is recognised as liability, in all material respect relating to the purchase of 100% of the shares in STO-CPH Produktion AB and Friday TV AB. This liability is related to Metronome Film & Television AB which was sold in 2009.

NOTE 29: OTHER CURRENT LIABILITIES

Other current liabilities include:
	2009	2008	2007
Financial liability related to minority interest put options (note 30)	227	1 197	-
Financial liability related to Total Return Swaps (note 5)	457	-	-
Trade payables	723	895	852
Prepayments from customers	631	643	572
Public duties payable	432	412	460
Accrued salaries	536	492	460
Accrued expenses	289	483	465
Financial derivatives (Note 18)	2	103	5
Provision for restructuring costs	196	157	72
Other	343	197	177
Total other current liabilities	3 836	4 579	3 063

The Group has no other significant liabilities with an uncertain payment date.

Provision for restructuring costs at 31.12.2009 is related to unpaid part of restructuring costs related to the profitability programme introduced in 2008, see note 9 Other revenues and expenses. Provision for restructuring costs at 31.12.2008 is related to accepted redundancy packages and provision related to SCM Italy.

The restructuring costs in 2008 relate to accepted redundancy packages and provision related to Schibsted Classified Media in Italy.

NOTE 30: FINANCIAL LIABILITIES RELATED TO MINORITY INTEREST PUT OPTIONS

The following financial liabilities related to minority interest put options are recognised:
	2009	2008	2007
Anuntis Segundamano Holdings SL / Anuntis Segundamano Espana SL	227	795	1 228
InfoJobs S.A	64	402	237
Total financial liabilities related to minority interest put options	291	1 197	1 465
Of which current (note 29)	227	1 197	-
Of which non-current (note 28)	64	-	1 465

Call-/ put options exist between Schibsted and the minority shareholders (23.77%) of Anuntis Segundamano Espana. Schibsted has a call option exercisable in the period 1.7.-31.12.2013. The minority interests have a put option exercisable in the period 17.10.2010-31.12.2019. The options related to Anuntis Segundamano Espana is a continuance of previous options related to Anuntis Segundamano Holdings. In October 2009 Schibsted paid EUR 33 million related to the ownership of InfoJobs S.A being lifted out from the sub-group in which the minority interests hold 23.77%. Schibsted's effective ownership interest in InfoJobs S.A thereby increased from 75.1% to 98.5%.

Call-/ put options exist between Schibsted and the minority shareholders (1.5%) of InfoJobs S.A. Schibsted has a call option exercisable in the period 31.12.2013-31.12.2015. The minority interests have a put option exercisable in the period 31.12.2011-31.12.2013. The minority interests in InfoJobs S.A reduced their ownership share in April 2009 by 6.94% through exercising a put option. Anuntis Segundamano Holdings SL paid EUR 34 million for the shares.

The options are to be exercised at values based on the existing agreements, which normally will correspond to market value at the exercise date.

The liability recognised is based on the best estimate of future amount to be paid. The estimates take into account the principles for determination of value in the existing agreements. The estimates take further into account, if relevant, management's expectations regarding future economic development used in determining recoverable amount in impairment tests.

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SCHIBSTED ANNUAL REPORT 2009

The liabilities related to minority interest put options are measured at net present value, and an interest expense of approximately NOK 30 million is charged to expense in 2009 (approximately NOK 68 million in 2008 and approximately NOK 40 million in 2007).

Change in the liability, exceeding change reflecting retained earnings related to the minority's shareholding and calculated interest expense, is recognised as change in goodwill.

NOTE 31: JOINT VENTURES

Significant operations reported as joint ventures are specified below:

Company	Ownership as at 31 December
	2009	2008	2007	Location	Segment	Business
20 Minutes France S.A.S	50%	50%	50%	Paris	International	Free newspapers
AS Arjakirjade Kirjastus	50%	50%	50%	Tallinn	International	Magazines
AS SL Öhtuleht	50%	50%	50%	Tallinn	International	Newspapers
Car & Boat Media group	50%	50%	50%	Paris	International	Classifieds on the Internet
Editions Aivoises Multimedia S.A.S	50%	50%	50%	Paris	International	Classifieds on the Internet
Fellesdistribusjonen Østfold AS	-	50%	50%	Fredrikstad	Norway	Distribution
Romerike Mediadistribusjon AS	34%	34%	34%	Kjeller	Norway	Distribution
Express Post AS	50%	50%	50%	Tallinn	International	Distribution
Scanpix Sweden AB	-	-	-	Stockholm	Sweden	Picture agency
Willhaben Internet Service GmbH & Co KG	50%	50%	50%	Vienna	International	Classifieds on the Internet

Fellesdistribusjonen Østfold AS was sold during 2009. In 4th quarter 2007 Car & Boat Media Group was established as a result of a merger of parts of the French operations of Schibsted Classified Media and the French online car portal Caradisiac. Scanpix Sweden AB was sold during 2007.

The following amounts are included in the Group's income statement and balance sheet from joint ventures subject to using proportionate consolidation:

	2009	2008	2007
Operating revenues	674	672	484
Operating expenses	(625)	(641)	(500)
Operating profit before impairment loss and other revenues and expenses	49	31	(16)
Profit (loss) before taxes	30	24	(17)
	2009	2008	2007
---	---	---	---
Non-current assets	537	622	504
Current assets	396	505	351
Total assets	933	1 127	855
Non-current liabilities	127	240	198
Current liabilities	279	422	295
Total liabilities	406	662	493
Net assets	527	465	362

NOTE 32: SUBSIDIARIES

The following subsidiaries were directly and indirectly owned as at 31.12.:

Business segment Norway	Location	2009	2008	2007
Media Norge ASA	Bergen	80.44%	100.00%	-
Aftenposten AS	Oslo	80.44%	100.00%	100.00%
Aftenposten Distribusjon AS	Oslo	80.44%	100.00%	100.00%
Aftenposten Multimedia AS *	Oslo	-	-	100.00%
Distribution Innovation AS	Oslo	48.26%	60.00%	60.00%
E24 Næringsliv AS	Oslo	88.26%	100.00%	100.00%
Eiendomsprofil AS	Bergen	35.69%	27.63%	26.16%
FINN Bil.no AS	Oslo	80.10%	62.00%	62.00%
FINN Eiendom.no AS	Oslo	69.99%	54.18%	51.29%
FINN Jobb.no AS	Oslo	80.10%	62.00%	62.00%
Finn Tech AS *	Oslo	-	-	62.00%
Finn Torget AS	Oslo	80.10%	62.00%	62.00%
Finn Reise AS	Oslo	80.10%	62.00%	62.00%
FINN.no AS	Oslo	80.10%	62.00%	62.00%
Turistinfo AS *	Oslo	-	62.00%	62.00%
Finn HC AS *	Oslo	-	62.00%	37.20%
Finn Foto Prosjekter AS (previous Finn Foto AS)	Oslo	80.10%	54.18%	51.29%
Vision Completed Baltic Osauhing	Tallin	-	-	51.29%
Finn Foto AS (previous Meglerassistenten AS)	Gjølme	80.10%	54.18%	-
Schibsted Søk AS	Oslo	80.10%	79.10%	100.00%
Sesam Media AS *	Oslo	-	79.10%	100.00%
Mediearkivet AB	Stockholm	-	100.00%	100.00%
Mediearkivet.no AS	Oslo	-	100.00%	100.00%

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SCHIBRTED ANNUAL REPORT 2009

Business segment Norway	Location	2009	2008	2007
Retriever Holding AB	Stockholm	-	100.00%	100.00%
Retriever Norge AS	Oslo	-	100.00%	100.00%
Retriever Sverige AB	Stockholm	-	100.00%	100.00%
Retriever Information AB	Stockholm	-	88.00%	88.00%
Mediehusene AS	Oslo	80.44%	100.00%	100.00%
Din Mat AS	Stavanger	67.49%	-	-
Fædrelandsvennen AS	Kristiansand	80.44%	-	-
Fædrelandsvennen Distribusjon AS	Kristiansand	80.44%	-	-
Radio Sør AS	Kristiansand	80.44%	-	-
Media AS	Kristiansand	80.44%	-	-
TV Sør AS	Kristiansand	80.44%	-	-
Lindesnes AS	Mandal	80.44%	-	-
Sørlandssamkjeringen AS	Mandal	49.88%	-	-
Sogne og Songdalen Budstikke AS	Sogne	46.35%	-	-
AS Fersund Aktiebogtrykkeri	Fersund	69.34%	-	-
Sør Distribusjon AS	Mandal	76.78%	-	-
Radio Lindesnes AS	Lindesnes	54.38%	-	-
Kristiansand Avis AS	Kristiansand	39.42%	-	-
Stavanger Aftenblad AS	Stavanger	80.44%	-	-
Aftenbladet Trykk AS	Sandnes	80.44%	-	-
Aftenbladet Distribusjon AS	Sandnes	80.44%	-	-
Aftenbladet Eiendom AS	Stavanger	80.44%	-	-
WoldCam AS	Stavanger	80.44%	-	-
Bergens Tidende AS	Bergen	80.44%	-	-
BT Respons AS	Bergen	80.44%	-	-
BTV AS	Bergen	80.44%	-	-
Bergensopplevelser AS	Bergen	80.44%	-	-
Avisprodukter AS	Bergen	80.44%	-	-
Mediatrykk AS	Bergen	80.44%	-	-
Åsaneposten AS	Bergen	80.44%	-	-
Vestnytt AS	Fjell	80.44%	-	-
Forlaget Strilen AS	Lindås	80.44%	-	-
Lokalavisene AS	Bergen	80.44%	-	-
Askøyværingen AS	Askøy	80.44%	-	-
Fanaposten AS	Bergen	80.44%	-	-
Bygdanytt AS	Bergen	80.44%	-	-
Bergens Ringen DA	Bergen	80.44%	-	-
Basefarm AS	Oslo	-	71.57%	71.57%
Basefarm AB	Stockholm	-	71.57%	71.57%
Harstad Tidende Gruppen AS	Harstad	-	-	78.94%
Bladet Tromsø AS	Tromsø	-	-	75.50%
Brønnøysund Avis AS	Brønnøysund	-	-	54.26%
Framtid i Nord AS	Nordreisa	-	-	78.05%
Harstad Tidende AS	Harstad	-	-	78.94%
HTG Distribusjon AS	Harstad	-	-	78.94%
HTG Multimedia AS	Harstad	-	-	77.82%
HTG Trykk AS	Harstad	-	-	78.94%
Nordlandsposten AS	Harstad	-	-	78.94%
Radio 10 BA	Harstad	-	-	78.94%
Troms Folkeblad AS	Finnsnes	-	-	78.94%
TV 10 Harstad AS	Harstad	-	-	78.94%
Schibsted Eiendom AS	Oslo	100.00%	100.00%	100.00%
Akersgaten 55 AS	Oslo	-	-	100.00%
Sandakerveien 121 AS	Oslo	100.00%	100.00%	100.00%
Stålfjæra 5 ANS	Oslo	100.00%	100.00%	100.00%
Schibsted Forlag AS	Oslo	100.00%	100.00%	100.00%
Kartago Förlag AB	Stockholm	-	100.00%	100.00%
Schibsted Förlag AB	Stockholm	100.00%	100.00%	100.00%
Schibsted Magasiner AS	Oslo	100.00%	100.00%	100.00%
Verdens Gang AS	Oslo	100.00%	100.00%	100.00%
Avisretur AS	Oslo	50.10%	50.10%	50.10%
Nettby Community AS	Oslo	70.00%	70.00%	60.00%
Radio VG AS	Oslo	100.00%	100.00%	100.00%
VG Multimedia AS	Oslo	100.00%	100.00%	100.00%
Dine Penger AS	Oslo	100.00%	100.00%	100.00%

72

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SCHRISTED ANNUAL REPORT 2009

Business segment Norway	Location	2009	2008	2007
Pengenedine AS	Oslo	100.00%	100.00%	100.00%
Absolutt Fotball AS	Oslo	80.16%	-	-
European Media Ventures AS	Oslo	100.00%	100.00%	100.00%
Gratisavisen avis1 AS	Oslo	100.00%	100.00%	100.00%
Schibsted Movie AS (previous Metronome AS)	Oslo	100.00%	100.00%	100.00%
Osloavisen AS	Oslo	100.00%	100.00%	100.00%
Schibsted Finans AS	Oslo	100.00%	100.00%	100.00%
Schibsted Interactive Studio AS	Oslo	100.00%	100.00%	100.00%
Schibsted Multimedia AS	Oslo	100.00%	100.00%	100.00%
Schibsted Print Media AS	Oslo	100.00%	100.00%	100.00%
Schibsted Trykk AS	Oslo	100.00%	100.00%	100.00%
Adwise Network AS (previous Sesam.no AS)	Oslo	100.00%	100.00%	100.00%
Media Norge Salg AS	Oslo	64.35%	-	-
Business segment Sweden	Location	2009	2008	2007
E24 International AB	Stockholm	100.00%	100.00%	99.65%
Metronome Film & Television AB	Stockholm	-	100.00%	100.00%
C. Wikander Produktion AB *	Stockholm	-	-	100.00%
Cosmo Televisjon AS	Oslo	-	-	100.00%
Drivankaret AB	Stockholm	-	50.00%	50.00%
Dropout AS	Oslo	-	-	100.00%
Endemol Entertainment Produktion AB	Stockholm	-	100.00%	100.00%
Filip Hammar Rättigheter AB *	Stockholm	-	-	100.00%
Filmlance International AB	Stockholm	-	100.00%	100.00%
Fredrik Wikingsson Rättigheter AB *	Stockholm	-	-	100.00%
Friday TV AB	Stockholm	-	100.00%	100.00%
Helikopter Digital Media AB *	Gothenburg	-	-	100.00%
Intrige Televisjon AS	Oslo	-	100.00%	67.00%
Mekano Film & Television AB *	Stockholm	-	-	100.00%
Meteor Films OÜ	Tallinn	-	100.00%	100.00%
Meter Film & Television AB	Stockholm	-	100.00%	100.00%
Metrix Interactive AB	Stockholm	-	100.00%	100.00%
Metronome Digital Media AB	Stockholm	-	100.00%	100.00%
Metronome Film & Television Oy	Helsinki	-	100.00%	100.00%
Metronome Film A/S	Copenhagen	-	100.00%	100.00%
Metronome International AB	Stockholm	-	100.00%	100.00%
Metronome LLC	Los Angeles	-	100.00%	-
Metronome Productions A/S	Copenhagen	-	100.00%	100.00%
Metronome Spartacus AB *	Stockholm	-	-	100.00%
Metronome Spartacus AS	Oslo	-	100.00%	100.00%
Mutter Media AB	Stockholm	-	100.00%	100.00%
Peter Emanuel Falck Produktion AB	Stockholm	-	100.00%	100.00%
Rocilla Script AB	Stockholm	-	100.00%	-
Rubicon Film AS	Oslo	-	100.00%	100.00%
Rubicon TV AS	Oslo	-	100.00%	100.00%
Spartacus TV production KB	Stockholm	-	-	67.00%
STO-CPH Produktion AB	Stockholm	-	100.00%	100.00%
Studios A/S	Copenhagen	-	100.00%	100.00%
Studios AS	Oslo	-	100.00%	100.00%
Studios Mekaniken AB	Stockholm	-	100.00%	100.00%
TV Spartacus AB *	Stockholm	-	-	100.00%
Tvålkoppen AB	Stockholm	-	100.00%	100.00%
Premiärpaketet Lance AB	Stockholm	100.00%	100.00%	100.00%
Sandrew Metronome AB	Stockholm	100.00%	100.00%	100.00%
AB Sandrew-Ateljéerna	Stockholm	100.00%	100.00%	100.00%
Filmfolket A/S*	Fredriksberg	-	100.00%	100.00%
Movie 24 AS	Oslo	-	100.00%	100.00%
Produktion S. Bauman AB	Stockholm	100.00%	100.00%	100.00%
Sandrew Film 86 KB	Stockholm	100.00%	100.00%	100.00%
Sandrew Film 87 KB	Stockholm	100.00%	100.00%	100.00%
Sandrew Film 97 KB	Stockholm	100.00%	100.00%	100.00%
Sandrew Metronome Danmark A/S	Copenhagen	100.00%	100.00%	100.00%
Sandrew Metronome Distribution Finland OY	Helsinki	100.00%	100.00%	100.00%
Sandrew Metronome Distribution Sverige AB	Stockholm	100.00%	100.00%	100.00%
Sandrew Metronome International AB	Stockholm	100.00%	100.00%	100.00%

73

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SCHIBSTED ANNUAL REPORT 2009

Business segment Sweden	Location	2009	2008	2007
Sandrew Metronome Norge AS	Oslo	100.00%	100.00%	100.00%
Sandrew Metronome Video Danmark A/S*	Copenhagen	-	100.00%	100.00%
Selskabet af 2/9 1999 ApS	Copenhagen	100.00%	100.00%	100.00%
Scanpix Scandinavia AB	Stockholm	100.00%	88.23%	88.23%
OÜ Scanpix Baltics	Tartu	100.00%	94.00%	94.00%
Scanpix Norge AS	Oslo	50.10%	44.20%	44.20%
Schibsted Sverige AB	Stockholm	100.00%	100.00%	100.00%
Aftonbladet Allt Om AB*	Stockholm	-	100.00%	100.00%
Aftonbladet Gratistidningen AB*	Stockholm	-	100.00%	100.00%
Aftonbladet Hierta AB **	Stockholm	91.00%	100.00%	100.00%
Aftonbladet Kolportage AB	Stockholm	91.00%	100.00%	100.00%
Aftonbladet Kvällstidningen AB*	Stockholm	-	100.00%	100.00%
Aftonbladet Mediehusbolaget AB*	Stockholm	-	100.00%	100.00%
Aftonbladet Nya Medier AB*	Stockholm	-	100.00%	100.00%
Aftonbladet Produktion AB*	Stockholm	-	100.00%	100.00%
Aftonbladet Tillväxtmedier Annonsförsäljning AB	Stockholm	100.00%	100.00%	-
Aftonbladet Tillväxtteknik 2 AB*	Stockholm	-	100.00%	100.00%
Aftonbladet Tillväxtteknik AB*	Stockholm	-	100.00%	100.00%
Aftonbladet TV AB	Stockholm	-	-	100.00%
ASF Sverige AB *	Stockholm	-	-	99.90%
Bostadsmobilen AB	Stockholm	-	49.71%	99.41%
Destination Redaktionell Produktion AB	Stockholm	100.00%	81.00%	-
Destinationpunktse AB	Stockholm	90.05%	81.00%	100.00%
E24 Näringsliv HB	Stockholm	100.00%	99.65%	99.65%
Fastighets AB Tidningsfabriken*	Stockholm	-	100.00%	100.00%
Hard Hat AB	Stockholm	70.00%	-	-
HB Svenska Dagbladets AB & Co	Stockholm	99.41%	99.41%	99.41%
Hierta Affärsutveckling AB*	Stockholm	-	100.00%	100.00%
Hittapunktse AB	Stockholm	100.00%	100.00%	99.70%
Jobb 24 HB	Stockholm	94.03%	88.39%	99.71%
Kundkraft i Sverige AB	Stockholm	91.00%	-	-
Mediateam Bernanning AB	Stockholm	51.00%	51.00%	-
Mini Media Sweden AB	Stockholm	51.00%	51.00%	-
MinTur AB	Stockholm	99.41%	90.46%	90.46%
PriceSpy Media Ltd	Wellington	70.00%	-	-
Prisjakt.nu AB	Ängelholm	70.00%	70.00%	70.00%
Resdagboken AB	Stockholm	100.00%	-	-
Rörlig Bild Sverige AB (previous Schibsted Rörliga Bild AB)	Stockholm	100.00%	99.82%	99.82%
Schibsted Sök AB	Stockholm	100.00%	100.00%	100.00%
Schibsted Tillväxtmedier AB (previous Aftonbladet Tillväxtmedier AB)	Stockholm	100.00%	100.00%	100.00%
Skivklubben Alfa AB (previous Svenska Skivklubben Delfin AB)	Skara	46.41%	51.00%	51.00%
Svenska Dagbladet Annons AB	Stockholm	99.41%	99.41%	99.41%
Svenska Dagbladet Digitala Medier AB	Stockholm	99.41%	99.41%	99.41%
Svenska Dagbladet Distribution AB	Stockholm	99.41%	99.41%	99.41%
Svenska Dagbladet Executive Club AB	Stockholm	99.41%	99.41%	99.41%
Svenska Dagbladet Holding AB	Stockholm	99.41%	99.41%	99.41%
Svenska Dagbladet Venture AB	Stockholm	99.41%	99.41%	99.41%
Svenska Dagbladets AB	Stockholm	99.41%	99.41%	99.41%
TA Teleadress Holding AB*	Stockholm	-	100.00%	99.70%
Tasteline Sweden AB	Stockholm	100.00%	100.00%	93.84%
Teleadress Information AB	Kalmar	-	80.10%	99.70%
Tidningstryckarna Aftonbladet Svenska Dagbladet AB*	Stockholm	-	100.00%	100.00%
Tidningstryckarna Holding Sweden AB*	Stockholm	-	100.00%	100.00%
TV.nu Sweden AB	Stockholm	51.00%	50.91%	50.91%
WebTraffic Norge AS	Oslo	100.00%	-	-
WebTraffic Sverige AB	Stockholm	100.00%	100.00%	100.00%
SI Företagstjänster Holding AB	Stockholm	100.00%	100.00%	100.00%
SI Företagstjänster AB	Stockholm	100.00%	100.00%	100.00%
Tesked AB	Varberg	92.04%	84.80%	84.80%
Mötesplatsen i Norden AB	Varberg	92.04%	84.80%	84.80%
Business segment International	Location	2009	2008	2007
20 Min Holding AG	Zürich	100.00%	100.00%	100.00%
20 Min International B.V.	Rotterdam	100.00%	100.00%	100.00%
20 Minutos España S.A.	Madrid	100.00%	80.00%	80.00%

74

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SCHIBSTED ANNUAL REPORT 2009

Business segment International	Location	2009	2008	2007
Multiciudad SL	Madrid	88.00%	76.00%	-
Multiprensa Y M@s S.L.	Madrid	99.87%	80.00%	80.00%
20 Min Holding AS	Oslo	100.00%	100.00%	100.00%
Regional Independent Newspapers North-West	Moscow	79.41%	66.67%	66.67%
20 Min Holding Germany GmbH (previous Ganymed GmbH)	Cologne	100.00%	100.00%	100.00%
AS Eesti Meedia	Tartu	100.00%	100.00%	100.00%
AS Kroonpress	Tartu	99.90%	99.90%	99.71%
AS Postimees	Tallinn	100.00%	100.00%	100.00%
Postimees Online OÜ	Tallinn	100.00%	100.00%	100.00%
OÜ Meediasüsteemid	Tartu	100.00%	100.00%	100.00%
Soov Kirjastus OU	Tallinn	100.00%	100.00%	100.00%
AS Kanal 2	Tallinn	100.00%	100.00%	100.00%
Ühinenud Ajalahed AS	Tartu	66.00%	-	-
Valgamaalase Kirjastus OÜ (previous AS Literio)	Valga	66.00%	100.00%	95.10%
Pärnu Postimees OÜ	Pärnu	66.00%	100.00%	100.00%
Virumaa Teataja OÜ (previous AS Viru Press)	Rakvere	66.00%	53.13%	53.13%
Järva Teataja OÜ	Paide	66.00%	-	-
Sakala Kirjastus OÜ	Viljandi	66.00%	-	-
AS Schibsted Baltics	Tallinn	100.00%	100.00%	100.00%
UAB 15 Minuciu	Vilnius	100.00%	65.99%	65.99%
UAB Ekstra Žinios	Vilnius	98.88%	98.88%	65.98%
UAB Žurnalu Leidybos Grupe (ZLG)	Vilnius	100.00%	66.67%	66.67%
UAB Plius	Vilnius	100.00%	51.00%	51.00%
E24 France SAS	Paris	85.00%	84.75%	-
Schibsted Classified Media AS	Oslo	100.00%	100.00%	100.00%
Anuntis Chile S.A.	Santiago	76.22%	76.23%	76.23%
Anuntis Peru S.A.C	Lima	76.22%	76.23%	76.23%
Anuntis Segundamano Argentina Holdings S.A.	Buenos Aires	76.23%	76.23%	76.23%
Anuntis Segundamano Argentina S.A.	Buenos Aires	76.23%	76.23%	76.23%
Anuntis Segundamano Espana SL	Barcelona	76.23%	76.23%	76.23%
Anuntis Segundamano Holdings SL	Barcelona	100.00%	76.23%	76.23%
Anuntis Segundamano Trademark (Mexico) BV	Amsterdam	100.00%	76.23%	76.23%
Anuntis Venezuela S.A.	Caracas	72.65%	76.23%	76.23%
ASM Clasificados de Mexico SA de CV	Mexico	76.22%	76.23%	76.23%
Blocket AB	Stockholm	100.00%	100.00%	99.90%
Byt Bil Nordic AB	Stockholm	100.00%	100.00%	100.00%
Cerca e Trova SA	Lugano	-	-	100.00%
CustoJusto, Unipessoal Lda	Lisbon	100.00%	100.00%	-
Editoria Anuntis Segundamano Online do Brazil Ltda.	Rio de Janeiro	76.22%	76.23%	76.23%
Editora Balcão Ltda	Rio de Janeiro	99.89%	76.15%	76.15%
Editora Urbana Ltda	Bogotá	68.61%	68.61%	68.61%
Hebdo Mag Brazil Holdings B.V.	Amsterdam	100.00%	76.23%	76.23%
Hebdo Mag Brazil Holdings Ltda.	Rio de Janeiro	99.99%	76.23%	76.23%
InfoJobs S.A.	Barcelona	98.50%	70.56%	71.40%
InfoJobs Italia Srl	Milan	72.89%	-	-
Inmobolsa Factory SL	Barcelona	76.23%	38.88%	38.88%
IT competence Center S.L	Barcelona	76.23%	76.23%	76.23%
Kapaza Holding BV	Utrecht	100.00%	100.00%	-
Kapaza BV	Utrecht	100.00%	100.00%	-
Kapaza Belgium NV	Brussels	100.00%	-	-
Schibsted Classified Media Hellas MEPE	Athens	100.00%	-	-
Schibsted Classified Media NV	Amsterdam	100.00%	76.23%	76.23%
Schibsted Classified Media (Switzerland) S.A.	Lugano	-	-	100.00%
Schibsted Classified Media Srl (previous Editoriale Secondamano S.R.L.)	Milan	-	100.00%	100.00%
Servicios de Geomarketing Immobiliario S.L.	Barcelona	76.23%	76.23%	76.23%
Subito.it Srl (previous SCM Italy Srl)	Milan	100.00%	100.00%	100.00%
Unimail S.A.*	Madrid	-	76.23%	76.23%
Schibsted AG	Berlin	100.00%	100.00%	100.00%
Schibsted Iberica SL	Madrid	100.00%	100.00%	100.00%
SFI Holding AS	Oslo	94.00%	88.60%	88.60%

• Merged with other companies in Schibsted Group.

** Aftonbladet Hierta AB was owned by Schibsted and the Swedish LO (Swedish Confederation of Unions) until the 1 of July 2009. LO owned 50.1% of the voting shares through preference shares with a fixed annual return (SEK 1.4 million). Schibsted owned 49.9% of the voting shares and had the industrial and financial ownership responsibility for Aftonbladet's development.

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SCHIBITED ANNUAL REPORT 2009

NOTE 33: SUPPLEMENTAL INFORMATION TO THE CASH FLOW STATEMENT

Interest and dividends included in the cash flow statement are as follows:

	2009	2008	2007
In cash flow from operating activities:
Interest paid	(270)	(384)	(318)
Interest received	32	81	47
Dividends received	38	111	71
In cash flow from financing activities:
Dividends paid (to majority)	-	(390)	(334)
Dividends paid (to minority interests)	(43)	(136)	(88)

Schibsted's cash flow statement shows net payments and receipts on the acquisition and sale of subsidiaries and interests in joint ventures.

The liquidity effect of acquisitions consists of the following:

	2009	2008	2007
Cash in acquired companies	167	6	7
Acquisition cost other current assets	313	5	11
Acquisition cost non-current assets	1 167	331	216
Aggregate acquisition cost assets	1 647	342	234
Equity and liabilities assumed	(989)	(87)	96
Gross purchase price	658	255	330
Cash in acquired companies	(167)	(6)	(7)
Acquisition of subsidiaries, net of cash acquired	491	249	323

The liquidity effect of sales consists of the following:

	2009	2008	2007
Cash in sold companies	49	36	11
Carrying amount other current assets	295	45	53
Carrying amount non-current assets	563	12	358
Aggregate carrying amount assets	907	93	422
Equity and liabilities transferred	(475)	(118)	(131)
Gain (loss)	414	33	73
Gross sales price	846	8	364
Cash in sold companies	(49)	(36)	(11)
Sale of subsidiaries, net of cash sold	797	(28)	353

NOTE 34: TRANSACTIONS WITH RELATED PARTIES

For remuneration to management, see note 11 Personnel expenses and share-based payment.

For loans to associated companies and joint ventures, see note 20 Other non-current assets.

Verdens Gang AS has printing contracts with Norwegian regional newspapers that during the first half year were associated companies to the Group. Total expenditure under these agreements was NOK 83 million in the first half year in 2009.

Christian Ringnes, member of the Board, controls the company from which Schibsted's subsidiary Eesti Meedia hires offices in Tallinn.

Chairmann of the Board, Ole Jacob Sunde, and member of the Board, Monica Caneman, have been paid separately NOK 420.000 and NOK 60.000 for consultancy work through their companies.

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SCHIBSTED ANNUAL REPORT 2009

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SCHIBSTED ANNUAL REPORT 2009

SCHIBSTED ASA INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER

(NOK million)	Note	2009	2008
Operating revenues	2	36	36
Personnel expenses	3	(187)	(149)
Depreciation and amortisation	4	(4)	(3)
Other operating expenses	5	(91)	(137)
Operating profit (loss)		(246)	(253)
Financial income	6	1 556	1 115
Financial expenses	6	(243)	(115)
Net financial items		1 313	1 000
Profit before taxes		1 067	747
Taxes	7	(98)	(122)
Net income		969	625

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SCHIBSTED ANNUAL REPORT 2009

SCHIBSTED ASA BALANCE SHEET AS AT 31 DECEMBER

(NOK million)	Note	2009	2008
ASSETS
Licences	4	1	1
Deferred tax assets	7	38	21
Intangible assets		39	22
Tangible assets	4	8	8
Investments in subsidiaries	8	4 181	2 217
Investments in associated companies	8	1 670	2 164
Investments in other shares	8	143	2
Other non-current receivables		15	-
Financial assets		6 009	4 383
Non-current assets		6 056	4 413
Receivables	9	742	838
Cash and bank deposits	10	173	24
Current assets		915	862
Total assets		6 971	5 275
EQUITY AND LIABILITIES
Share capital		108	69
Treasury shares		(5)	(5)
Share premium reserve		1 289	76
Other paid-in capital		116	112
Paid-in capital		1 508	252
Other equity		3 253	2 439
Retained earnings		3 253	2 439
Equity	12	4 761	2 691
Pension liabilities	13	119	73
Provisions		119	73
Current liabilities	14	2 091	2 511
Total equity and liabilities		6 971	5 275

Oslo, 22. March 2010

Schibsted ASAs Board of Directors

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SCHIBSTED ANNUAL REPORT 2009

SCHIBSTED ASA CASH FLOW STATEMENT FOR THE YEAR ENDED 31. DECEMBER

(NOK million)	2009	2008
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxes	1 067	747
Taxes paid	-	(9)
Depreciation and amortisation	4	3
Reversed previous impairment losses	(170)	-
Impairment losses of shares	169	-
Gain on sale of non-current assets	(31)	(183)
Share-based payment	4	5
Group contributions included in financial income	(626)	(797)
Change in current receivables	(73)	(15)
Change in current liabilities	296	3
Difference between pension cost and cash flow related to pension plans	46	21
Net cash flow from operating activities	686	(225)
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of tangible assets	(4)	(3)
Change in non-current receivables	(15)	-
Purchase of equity investments	(1 473)	(688)
Sale of shares	141	450
Net cash flow from investing activities	(1 351)	(241)
CASH FLOW FROM FINANCING ACTIVITIES
Capital increase	1 226	-
Change in current interest-bearing borrowings	(734)	837
Group contributions received (net)	322	256
Dividends paid	-	(390)
Purchase / sale of treasury shares	-	(221)
Net cash flow from financing activities	814	482
Net cash flow for the year	149	16
Cash and cash equivalents at 1 January	24	8
Cash and cash equivalents at 31 December	173	24

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SCHIBSTED ANNUAL REPORT 2009

SCHIBSTED ASA NOTES TO THE FINANCIAL STATEMENTS

All amounts in NOK million unless otherwise stated.

NOTE 1: ACCOUNTING POLICIES

The financial statements of Schibsted ASA have been prepared in accordance with the provisions of the Norwegian Accounting Act and generally accepted accounting principles in Norway.

Revenue recognition

Operating revenues are recognised when the goods are delivered or the service rendered.

Classification

Assets and liabilities related to the normal operating cycle are classified as current assets and current liabilities. Receivables and liabilities not related to the normal operating cycle are classified as current if they are of a short-term nature, normally due within one year. Shares and other investments not intended for continued use or ownership are classified as current assets. Other assets are classified as fixed assets and other liabilities as long term.

Shares

Shares are measured at cost and are impaired if the carrying amount exceeds the recoverable amount. The impairment is reversed if the basis for the write-down is no longer present.

Group contributions received are included in financial income provided that the Group contribution received does not represent a repayment of capital invested. Group contributions that represent a repayment of capital invested are accounted for as a reduction in the cost of investments in subsidiaries. Net Group contributions payable (gross Group contributions less the associated tax effect) is included in the cost of investments in subsidiaries. Dividends from subsidiaries and associated companies are included in financial income.

Non-current tangible assets and intangible assets

Non-current tangible and intangible assets are measured at cost less accumulated depreciation, amortisation and impairment. Non-current tangible and intangible assets with limited economic lives are depreciated over the expected economic life. Non-current tangible and intangible assets are impaired if the carrying amount exceeds the recoverable amount. The recoverable amount is the higher of net sales value and the present value of future cash flows expected to be generated. Impairments are reversed if the basis for the impairment is no longer present.

Leasing

Leasing agreements are classified as financial or operational based on the actual content of the agreement. Agreements transferring substantially all the financial rights and obligations related to the leased object to Schibsted are classified as financial. Non-current tangible assets held under financial lease agreements are recognised in the balance sheet and depreciated over the estimated economic life of the asset. The present value of lease payments is included in non-current interest-bearing borrowings. The borrowings are reduced by the amount of lease payments less the effective interest rate. Other lease agreements are classified as operational and the annual leasing fee is charged as a leasing expense.

Foreign currency

Foreign currency monetary items are translated at the closing rate at the date of the balance sheet. Foreign currency gains and losses are reported in the income statement in the lines Financial income and Financial expenses.

Trade receivables

Trade receivables are measured at realisable value. Provisions are made for bad borrowings.

Treasury shares

The cost of acquisition and proceeds from sale of treasury shares are offset against equity.

Pension cost

Pension liabilities related to defined benefit plans are measured at the net present value of future pension benefits earned at the balance sheet date and calculated on the basis of assumptions for, among others, the discount rate, expected future wage growth and pension adjustments. Plan assets are measured at fair value. Net pension liabilities related to under-funded plans are recorded as provisions, while the net assets of over-funded plans are recorded in non-current financial assets. Net pension expense, which is gross pension expense less the expected return on plan assets adjusted for past service cost and the effects of changes in estimates, are included in personnel expenses. Changes in pension liabilities due to amendments in pension plans are included in net pension expenses over the vesting period or immediately if the benefits are immediately vested.

Changes in pension liabilities and plan assets, due to changes in and deviations from the calculation assumptions, are included in net pension expense over the average remaining working lives of participants for that part of the accumulated effect that exceeds 10% of the greater of plan assets or pension liabilities. In the case of pension plans that are defined as contribution plans for accounting purposes the premiums are charged to pension expenses for the period.

Share-based payment

The fair value of options granted to employees, measured at grant date, is charged to expense as personnel expenses over the vesting period. Related social security costs, calculated on the difference between the exercise price and share price at the balance sheet date, are charged over the vesting period.

Restructuring costs

Restructuring costs are recognised in accordance with the matching principle, which implies that expenses not related to revenues in future periods are charged to expense when incurred. Restructuring costs are incurred when a restructuring plan is approved and announced.

Taxes

The tax charge is calculated from the profit (loss) before tax and comprises current taxes and the change in deferred taxes. Deferred tax assets and liabilities are calculated in accordance with the liability method without discounting and provided for all differences between the carrying amount in the balance sheet and the tax base of assets and liabilities, and for unused tax losses. Deferred tax assets are recognised only when it is expected that the benefit can be utilised through sufficient taxable profits from expected future earnings.

81

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SCHIBSTED ANNUAL REPORT 2009

Contingent liabilities

Contingent liabilities are recognised if it is more probable than not that the liability will become effective. The best estimate of amounts to be paid is included in other provisions in the balance sheet. Other obligations, for which no liability is recognised, are disclosed in notes to the financial statements.

Dividend

Dividend for the financial year, as proposed by the Board of Directors, is recognised as liability at 31.12.

Cash flow statement

The cash flow statement is prepared using the indirect method. Cash and cash equivalents include cash, bank deposits and other monetary instruments with a maturity of less than three months at the date of purchase.

NOTE 2: OPERATING REVENUES

Operating revenues consist of:
	2009	2008
Sales revenues	36	36
Total	36	36

Sales revenues consists of consultant fees and fees for subsidiaries' participation in programs for management and organizational development.

NOTE 3: PERSONNEL EXPENSES AND MAN-YEARS

Personnel expenses consist of:
	2009	2008
Salaries and wages	105	94
Social security costs	16	12
Net pension expense (note 13)	61	30
Other personnel expenses	1	8
Share-based payment	4	5
Total	187	149

The company has 109 full-time equivalents in 2009 included trainees. For information concerning auditor's fee, remuneration to management including share-based payment, refer to note 11 Personnel expenses and share-based payment in the consolidated financial statements.

NOTE 4: NON-CURRENT TANGIBLE ASSETS AND LICENCES

	Equipment, furniture, vehicles	Licences
Cost as at 1 January 2009	46	2
Additions	2	2
Disposals	(18)	-
Cost as at 31 December 2009	30	4
Accumulated depreciation and amortisation 1 January 2009	(38)	(1)
Accumulated depreciation and amortisation disposals	18	-
Depreciation and amortisation for the year	(2)	(2)
Accumulated depreciation and amortisation 31 December 2009	(22)	(3)
Carrying amount 31 December 2009	8	1
Depreciation method	Straight line	Straight line
Depreciation period	3 - 10 years	3 - 5 years

Depreciation charge includes depreciation of leasehold improvements of NOK 0.4 million. Operating lease payments amounting to NOK 20 million, mainly related to leased office buildings with a remaining lease term of 10 years, are charged to expense in 2009.

NOTE 5: OTHER OPERATING EXPENSES

Other operating expenses consist of:
	2009	2008
Rent, maintenance etc (note 4)	24	19
Office and administrative expenses	17	23
Professional fees	28	51
Travel, meetings and marketing	22	44
Total	91	137

NOTE 6: FINANCIAL ITEMS

Financial income consists of:
	2009	2008
Interest income	9	1
Group contributions received	626	797
Dividends from subsidiaries	700	-
Dividends from associated companies	17	127
Dividends from other companies	1	5
Reversed previous impairment losses	170	-
Gain on sale of shares	31	183
Other financial income	2	2
Total	1 556	1 115

Gain on sale of shares relates to the sale of Basefarm AS to Reiten & Co Capital Partners VII LP. Dividends from subsidiaries is from Media Norge ASA. Reversed previous impairment losses of shares in 2009 is related to Schibsted Multimedia AS.

Financial expenses consists of:	2009	2008
Interest expenses	10	-
Interest expenses cash pool system (note 10)	59	110
Interest expenses to Group companies	-	2
Impairment losses of shares	169	-
Other financial expenses	5	3
Total	243	115

Impairment losses of shares in 2009 relates to Schibsted Movie AS, 20 Min Holding AS and Schibsted Trykk AS. Other financial expenses in 2009 and 2008 regards foreign exchange losses.

NOTE 7: TAXES

Set out below is a specification of the difference between the profit before taxes and taxable income for the year:
	2009	2008
Profit before taxes	1 067	747
Permanent differences	(718)	(309)
Change in temporary differences	61	17
Taxable income	410	455
Tax rate	28%	28%

Tax payable and the year's tax charge is calculated as follows:

	2009	2008
Calculated current taxes	115	127
Calculated current taxes related to rights issue costs	(26)	-
Current taxes related to Group contributions payable	(89)	(127)
Taxes payable	-	-

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SCHIBSTED ANNUAL REPORT 2009

	2009	2008
Taxes payable	-	-
Change in net deferred tax assets	(17)	(5)
Tax related to rights issue costs	26	-
Tax related to Group contributions payable	89	127
Tax charge	98	122
The net deferred tax asset consists of the following:
---	---	---
	2009	2008
Temporary differences related to:
Non-current tangible assets	(2)	(2)
Pension liabilities	(119)	(73)
Other current liabilities	(15)	-
Total basis for deferred tax asset	(136)	(75)
Tax rate	28%	28%
Net deferred tax liability (asset)	(38)	(21)

NOTE 8: INVESTMENTS IN SHARES

Shares in subsidiaries	Ownership% 31.12.09	Location	Carrying amount
20 MIN Holding AS	100.00	Oslo
Schibsted Movie AS	100.00	Oslo	130
Osloavisen AS	100.00	Oslo	-
Schibsted Eiendom AS	100.00	Oslo	124
Schibsted Finans AS	100.00	Oslo	392
Schibsted Forlag AS	100.00	Oslo	46
Schibsted Multimedia AS	100.00	Oslo	1 098
Schibsted Print Media AS	100.00	Oslo	546
Schibsted Sverige AB	100.00	Stockholm	67
SFI Holding AS	70.00	Oslo	20
Verdens Gang AS	100.00	Oslo	25
Media Norge ASA	80.07	Bergen	1 733
Total			4 181

Group contributions payable to subsidiaries, NOK 229 million (net) is capitalised as part of investments in subsidiaries.

Shares in associated companies	Ownership % 31.12.09	Location	Carrying amount	Equity	Net income
Finn.no AS	39.87	Oslo	1 412	566	209
Schibsted Trykk AS	40.00	Oslo	257	510	26
Svanedamsveien 10 AS	25.00	Kristiansand	1	68	3
Total			1 670
Other shares
Scanpix Scandinavia AB	13.32	Stockholm	2
Polaris Media ASA	32.29	Trondheim	141
Stålfjæra ANS	1.00	Oslo	-
Total			143

Ownership (%) equals share of voting power, with the exception of Polaris Media ASA were the voting power is 7.1%.

Media Norge ASA was established in June 2009 through a merger of Aftenposten AS, Fædrelandsvennen AS, Fædrelandsvennen Trykkeri AS, Stavanger Aftenblad ASA and Bergens Tidende AS. The transaction was recognised to carrying amounts.

Markets prices are available for shares in Polaris Media ASA. Based on the latest traded prices the fair value of the shares in Polaris Media ASA is NOK 363 million.

In November 2009 Basefarm was sold to Reiten & Co Capital Partners VII LP with a gain of NOK 31 million.

Schibsted entered on 11 June 2009 into a Total Return Swap (TRS) related to 25.2% of the shares of Polaris Media ASA. The entering into the contract implies that Schibsted ASA's share of the voting power of Polaris is reduced from 32.3% to 7.1%, while the financial interest remains with Schibsted ASA. Until entering into the agreement, Schibsted's ownership interest in Polaris was accounted for as an associated company. After that date, Schibsted ASA's remaining ownership interest (including shares held under the Total Return Swap) is accounted for as investments in other shares.

The Total Return Swap agreements implies that Schibsted has financial assets and financial liabilities representing the rights and obligations Schibsted ASA has towards the counterpart. The assets are in the balance sheet included in non-current financial assets at NOK 110 million, and the liabilities are included in other current liabilities at NOK 271 million. See note 14 Current liabilities.

NOTE 9: RECEIVABLES

Receivables consist of:
	2009	2008
Current receivables from Group companies	636	819
Other receivables	106	19
Total	742	838

Other receivables include NOK 91 million receivables from SEB Enskilda related to the Total Return Swap related to Polaris Media ASA.

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SCHIBSTED ANNUAL REPORT 2009

NOTE 10: CASH AND BANK DEPOSITS

Total cash and bank deposits of NOK 173 million, include NOK 8 million, pledged as a security for trading on Nord Pool ASA.

Schibsted ASA's bank account is included in the Schibsted Group's cash pool with Danske Bank. The cash pool system has been established to contribute to an optimal liquidity management for the Schibsted Group. As at 31.12.2009 Schibsted ASA had drawn NOK 1,272 million on sub-accounts in the cash pool system, which is managed and controlled by Schibsted Finans AS. The overdraft is included in current liabilities in the balance sheet. For information concerning financial market risk refer to note 3 Financial risk management and 23 Cash and cash equivalents in the consolidated financial statements.

NOTE 11: OWNERSHIP

The 20 largest shareholders as at 31 December 2009:

	Number of shares	Interest in %
Nye Blommenholm Industrier AS	29 158 589	27.00
Folketrygdfondet	7 062 543	6.54
JPMorgan Chase Bank	6 108 925	5.66
State Street Bank AN A/C (Omnibus D)	5 764 758	5.34
Bank of New York S/A Mellon	5 067 340	4.69
Schibsted ASA	4 660 641	4.32
NWT Media AS	2 962 619	2.74
Skandinaviska Enskilda Banken, Sverige	2 119 000	1.96
Orkla ASA	1 945 200	1.80
SHB Stockholm Clients	1 940 237	1.80
Clearstream Banking	1 563 575	1.45
State Street Bank AN A/C (Omnibus F)	1 115 654	1.03
Citibank N.A. London A/C	1 000 000	0.93
Bank of New York S/A Mellon	963 615	0.89
JPMorgan Chase Bank	956 804	0.89
Skandinaviska Enskilda Banken, Sverige	946 000	0.88
DnB Nor Bank ASA Egenhandelskonto	808 496	0.75
JPMBLSA	761 839	0.71
BNP Paribas Secs Service Paris	758 400	0.70
RBC Dexia Investor Service Trust	755 648	0.70
Total 20 largest shareholders	76 419 883	70.78

The total number of shares in Schibsted ASA as at 31.12.2009 was 108,003,615 and the number of shareholders 4,754. Foreign ownership was 44.6%. Schibsted ASA owned 4,700,141 treasury shares, including 39,500 shares owned by the subsidiary Bergens Tidende AS, at 31.12.2009.

The Annual Shareholders' Meeting has given the Board authority to acquire own shares up to 6,925,000 shares (10%). The authority was renewed at the Annual Shareholders' Meeting on 15 May 2009 for a period until the Annual Shareholders' Meeting in 2010. At the Annual Shareholders' Meeting on 12 May 2010 the Board will present a resolution to extend the authorisation for the Board to purchase and dispose of up to 10% of the share capital in Schibsted ASA according to the Norwegian public limited liability companies act under the conditions evident from the notice of the Annual Shareholders' Meeting.

NOTE 12: EQUITY

The development in the company's equity in 2009 is as follows:

	Share capital	Treasury shares	Share premium reserve	Other paid-in capital	Other equity	Total
Equity as at 31.12.2008	69	(5)	76	112	2 439	2 691
Capital increase	39	-	1 213	-	-	1 252
Share-based payment	-	-	-	4	-	4
Net income	-	-	-	-	969	969
Dividend	-	-	-	-	(155)	(155)
Equity as at 31.12.2009	108	(5)	1 289	116	3 253	4 761

Schibsted ASA's share capital consists of 108,003,615 shares of NOK 1 par value. The par value of treasury shares is presented in a separate line within paid-in capital with a negative amount.

In 2009 Schibsted ASA completed a capital increase and 38,753,615 shares was subscribed at NOK 34.

No shareholder may own or vote at the shareholder's meeting for more than 30% of the shares.

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SCHIBSTED ANNUAL REPORT 2009

NOTE 13: PENSION PLANS

The company is obligated to have an occupational pension scheme in accordance with the Act on Mandatory company pensions ("lov om obligatorisk tjenestepensjon"). The company's pension scheme meets the requirements of that Act.

As at 31.12.2009 the company's pension plan had 99 members. For information concerning description of the pension plans and the principal assumptions, refer to note 26 in the consolidated financial statements.

	2009	2008
The amounts recognised in profit or loss are as follows:
Current service cost	18	16
Interest cost	9	6
Expected return on plan assets	(3)	(3)
Actuarial gains or losses recognised	5	3
Past service cost	26	4
Net benefit expense – defined benefit plans	55	26
Benefit expense – defined contribution plans	6	4
Net benefit expense	61	30
The amounts recognised in the balance sheet are as follows:	2009	2008
---	---	---
Present value of funded defined benefit obligations	60	66
Fair value of plan assets	(49)	(49)
Present value (net of plan assets) of funded defined benefit obligations	11	17
Present value of unfunded defined benefit obligations	162	108
Unrecognised actuarial gains or losses	(54)	(52)
Net defined benefit liability	119	73
Social security tax included in present value of defined benefit obligations	23	15
Changes in net defined benefit liability are as follows:	2009	2008
---	---	---
As at 1 January	73	52
Net pension benefit expense	55	26
Contributions / benefits paid	(9)	(5)
As at 31 December	119	73

NOTE 14: CURRENT LIABILITIES

Current liabilities consists of:	2009	2008
Trade creditors	9	6
Taxes payable (note 7)	-	-
Public duties payable	6	4
Dividends accrued	155	-
Current liabilities Group company (cash pool system) (note 10)	1 272	2 006
Current liabilities to Group companies	334	466
Financial liability related to Total Return Swap (note 8)	271	-
Other current liabilities	44	29
Total	2 091	2 511

NOTE 15: GUARANTEES AND PROVISION OF SECURITY

	2009	2008
Guarantees for loans and drawing facilities on behalf of Group companies	7 246	8 797
Other guarantees on behalf of Group companies	300	257
Other guarantees	16	9
Total	7 562	9 063

With regard to guarantees for loans and drawing facilities of NOK 7.2 billion, NOK 3.7 billion had been drawn on the loan facility at the end of 2009. NOK 5.9 billion had been drawn at the end of 2008. Other guarantees on behalf of Group companies relate to guarantees towards Danske Bank for up to NOK 300 million regarding guarantees for tax withholdings and other guarantees.

There are also guarantees for loans to employees in the Group of NOK 5 million, as well as unfunded pension liabilities of NOK 4 million. For information concerning loans to senior managers, refer to note 11 Personnel expenses and share-based payment in the consolidated financial statements.

NOTE 16: EVENTS AFTER THE BALANCE SHEET DATE

In 2010 Schibsted ASA sold its shares in Schibsted Trykk to Media Norge ASA at NOK 257 million.

DECLARATION BY THE BOARD OF DIRECTORS AND PRESIDENT AND CEO

We confirm that, to the best of our knowledge, the financial statements for the period from 1 January to 31 December 2009 has been prepared in accordance with applicable accounting standards and gives a true and fair view of the Group and the Company's consolidated assets, liabilities, financial position and results of operations, and that the Report of the Board of directors provides a true and fair view of the development and performance of the business and the position of the Group and the Company together with a description of the key risks and uncertainty factors that they are facing.

Oslo, 22 March 2010

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SCHIBITED ANNUAL REPORT 2009

ERNST & YOUNG

Statsautoriserte revisorer
Ernst & Young AS
Christian Frederiks pl. 6, NO-0154 Oslo
Oslo Atrium, P.O.Box 20, NO-0051 Oslo
Foretaksregisteret: NO 976 389 387 MVA
Tlf.: +47 24 00 24 00
Fax: +47 24 00 24 01
www.ey.no
Medlemmer av Den norske Revisorforening

To the Annual Shareholders' Meeting of Schibsted ASA

Auditor's report for 2009

We have audited the annual financial statements of Schibsted ASA as of 31 December 2009, showing a net income of NOK 969 million for the Parent Company and a net income of NOK 512 million for the Group. We have also audited the information in the Directors' report concerning the financial statements, the going concern assumption, and the proposal for the allocation of the profit. The financial statements comprise the financial statements for the Parent Company and the Group. The financial statements of the Parent Company comprise the balance sheet, the statements of income, cash flows as well as the accompanying notes. The financial statements of the Group comprise the consolidated balance sheet, the statements of income, comprehensive income, cash flows and changes in equity as well as the accompanying notes. The regulations of the Norwegian Accounting Act and accounting standards, principles and practices generally accepted in Norway have been applied in the preparation of the financial statements of the Parent Company. IFRSs as adopted by the EU have been applied in the preparation of the financial statements of the Group. These financial statements and the Directors' report are the responsibility of the Company's Board of Directors and President. Our responsibility is to express an opinion on these financial statements and on other information according to the requirements of the Norwegian Act on Auditing and Auditors.

We conducted our audit in accordance with laws, regulations and auditing standards and practices generally accepted in Norway, including the auditing standards adopted by the Norwegian Institute of Public Accountants. These auditing standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. To the extent required by law and auditing standards, an audit also comprises a review of the management of the Company's financial affairs and its accounting and internal control systems. We believe that our audit provides a reasonable basis for our opinion.

In our opinion,

• the financial statements of the Parent Company are prepared in accordance with laws and regulations and present fairly, in all material respects the financial position of the Company as of 31 December 2009, and the results of its operations, cash flows for the year then ended, in accordance with accounting standards, principles and practices generally accepted in Norway
• the financial statements of the Group are prepared in accordance with laws and regulations and present fairly, in all material respects, the financial position of the Group as of 31 December 2009, and the results of its operations, cash flows and changes in equity for the year then ended, in accordance with IFRSs as adopted by the EU
• the Company's management has fulfilled its duty to properly record and document the Company's accounting information as required by law and bookkeeping practice generally accepted in Norway
• the information in the Directors' report concerning the financial statements, the going concern assumption, and the proposal for the allocation of the profit is consistent with the financial statements and complies with law and regulations.

Oslo, 22 March 2010
ERNST & YOUNG AS
Jan Egil Haga
State Authorised Public Accountant (Norway)
(sign)
Note: The translation to English has been prepared for information purposes only.

A member firm of Ernst & Young Global Limited

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SCHIBSTED ANNUAL REPORT 2009

SCHIBSTED's HISTORY

CHRISTIAN MICHAEL SCHIBSTED

He grew up in poverty and was orphaned at an early age. He was placed in Christiania Opfostringsanstalt, a poorhouse which had a printing works with the rights to publish "Christiania Intelligenssedler." Here he trained as a typographer and printer, laying the foundation for a large media group. In the picture, he is with his second wife, Thomasine Dorthea, and son Amandus, who later became a legendary editor and manager of Aftenposten.

2009

> Media Norge established
> Schibsted Sverige established

2006

> Acquisition of selected parts of Trader Classified Media
> Established in Russia through the free newspaper Moi Rayon

2005

> A new vision with European ambitions
> Launch of E24 Näringsliv

2003

> Acquisition of Blocket AB

2002

> Launch of 20 Minutes in France

2001

> Launch of 20 Minutes in Spain

2000

> Scandinavian Online (SOL) listed on the stock exchange

1999

> Launch of the free newspaper concept 20 Minutes
> FINN.no was established

1998

> Acquisition of Svenska Dagbladet
> Investment in the Eesti Meedia Group

1996

> Acquisition of Aftonbladet

1995

> Acquisition of Metronome Film & Television
> A new vision with Scandinavian ambitions
> First investments in online and new media activities
> First investments in Estonia – Kanal 2

1992

> Listing on the Oslo Stock Exchange (Oslo Børs)
> First investments in TV and films

1989

> Converted from a private company into a private limited company and group

1966

> Takeover of VG

1911

> Aftenposten obtained the "exclusive rights" to Amundsen's journey to the South Pole

1885

> Aftenposten started to be published twice a day

1860

> Launch of Christiania Adresseblad/Aftenposten

1839

> Chr. Schibsteds Forlag was established

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SCHIBSTED

Apotekergata 10

PO box 490 Sentrum

NO - 0106 Oslo

Phone: +47 23 10 66 00

Fax: +47 23 10 66 01

E-mail: schibsted@schibsted.no

www.schibsted.com

Photo: Berti Roald, Scanpix. Cover: ADUNDAS DESIGN. Translation: Amesto Translations. Graphic Production: Kampen Grafisk AS 8.9. Lisensnr. 241 625