Annual Report 2011 bonnier ab annual report
2011
1
Content Board of Directors’ Report
3–7
Income Statements
8
Cash Flow Statements
8
Balance Sheets at December 31
9
Change in Shareholders’ Equity
10
Notes to the Financial Statements
11–33
Auditor’s Report
34
Multi-year Summary
35
Annual Report for fiscal year January 1 – December 31, 2011 The Board of Directors and the President of Bonnier AB, corporate registration number 556508-3663, herewith submit the following Annual Report and Consolidated Financial Statements, pages 3–33, including the Board of Directors’ Report with the Proposed Disposition of Unappropriated Earnings, Income Statements, Balance Sheets, Cash-Flow Statements, Change in Shareholders’ Equity and Notes to the Financial Statements.
Translation from the Swedish original.
The Cover: The world according to Bonnier, with 175 companies in 16 countries
2
bonnier ab annual report
2011
Board of Directors’ Report Investing in the Future onnier’s sales in 2011 amounted to SEK 29,819 M B (29,824), remaining unchanged compared with 2010. Adjusted for currency effects, sales rose by 2.5 percent. “For Bonnier, 2011 was a year of big investments in restructuring and adapting to a digital environment, as well as investments in positioning and content within the Broadcasting business area,” says CEO Jonas Bonnier. “Together with a decline in the global advertising market during the fall, these were major contributing factors to lower profitability compared to 2010.” “The global change in the media market continues at a rapid pace and during 2011, Bonnier took on significant restructuring costs within a range of its businesses. Group overview Earnings SEK M Net sales EBITA Operating profit (EBIT)1) Net financial items Profit/loss after net financial items Profit/loss for the year 1)
Of which, restucturing costs and other items affecting comparability
roup profit before tax, excluding goodwill amortizaG tion, amounted to SEK 1,472 M (1,788). Profit/loss for the year after tax and minority interests amounted to SEK 463 M (711). he Operating EBITA1) margin decreased from 8.1 T percent to 6.4 percent before restructuring and transformation costs and other non-recurring and extraordinary items affecting comparability. as a result of rapid developments in the IT sector and the Internet. The significant risk and uncertainty factors for the Group are dependent on how these external factors develop in the future.
2011 29,819 1,263 1,019 –355 664 463
2010 29,824 2,111 1,522 –522 1,000 711
–632
–319
• Sales remained unchanged SEK 29,819 M (29,824). • Profit/loss after net financial items was SEK 664 M (1,000). Profit/loss after tax and minority share was SEK 463 M (711). • Rate of return on operating capital1) was 7 percent (10) and on shareholders’ equity1) 5 percent (10). • Net debt at year’s end was SEK 7,437 M (7,207). • Shareholders’ equity including minority interests amounted to SEK 7,581 M (7,577). • Gearing Ratio (Net debt/Shareholders’ equity including minority interests) amounted to 0.98 (0.95). Ownership. Bonnier AB is a wholly-owned subsidiary of Bonnier Holding AB, a subsidiary of Albert Bonnier AB, which, in turn, is owned by more than 70 members of the Bonnier family. Address and corporate registration number. The Bonnier AB Group’s Parent Company is Bonnier AB, whose corporate registration number is 556508-3663. The Head Office is located on Kungsgatan 49 and its postal address is SE-113 90 Stockholm, Sweden. The Internet address is www.bonnier.com. Business areas. The Group conducts operations in the media sphere, including books, magazines, daily newspapers, printed and electronic business information, music, cinemas, film and TV production, commercial local radio and Internet products. Operations are conducted in 16 countries. Important external factors affecting group earnings. The most important external factors that affect the Group’s earnings are business conditions in Sweden, household consumption, advertising investment and consumer expectations. These factors are also important for Group earnings in other Nordic countries, as well as in Eastern Europe, Germany, the US and other markets where the Group operates, along with the competitive situation in key markets. Extensive changes are occurring in the media sphere
1)
The major part of the decrease in income before tax for 2011, which amounted to SEK 664 million (SEK 1 billion), can be attributed to these investments in the future. Restructuring costs are expected to remain high before normalizing in 2013. The goal, naturally, is that the costs we’re taking on now will create the best conditions for long-term growth and profitability.”
Business areas Net sales by business area SEK M Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Total Operating EBITA by business area SEK M Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Operating EBITA total
2011 6,267 5,352
2010 6,265 5,658
Change, % 0.0 –5.4
9,436 3,810 1,877 3,403 –326 29,819
9,225 3,828 1,758 3,405 –315 29,824
2.3 –0.5 6.8 –0.1
2011 648 128
2010 720 155
Change, % –10.0 –17.4
917 273 248 84 –403 1,895
1,260 280 210 115 –310 2,430
–27.2 –2.5 18.1 –27.0
Restructuring costs and other items affecting comparability
–632
–319
EBITA total
1,263
2,111
0.0
–22.0
–40.2
Bonnier Books includes book publishers and book clubs in several countries. The Swedish Bonnierförlagen includes among others Albert Bonniers Förlag and Wahlström & Widstrand. In Sweden there is also Semic International, in Finland Tammi and WSOY and in Norway Cappelen Damm (50 percent). Through Bonnier Media, Bonnier is the leading publisher of children’s books in Germany and there it also has an extensive publishing of fiction. The British book publisher Bonnier Publishing has subsidiaries in among other countries France, Australia and the US. Moreover it includes the largest on-line book retailer in the Nordic region, Adlibris. Books sales in 2011 remained nearly unchanged. The Operating EBITA1) of SEK 648 M (720) reflects a decrease, but was at the same time the second best result ever for books. During the year, Bonnier strengthened its position as Scandinavia’s leading publisher of gen-
For definition see Note 38 in the Annual Report.
bonnier ab annual report
2011
3
Board of Directors’ Report
eral literature with the acquisition of WSOY from Sanoma, while Bonnier Utbildning was sold. Bonnier Magazine Group is comprised of three publishers of periodicals, Bonnier Publications with head offices in Copenhagen and Oslo, Bonnier Tidskrifter in Stockholm and Bonnier Corporation in the US. The business area is, in the first place, oriented towards consumer publications but has also a significant publication of business to business titles as well as cost free newspapers. Magazines is the business area where a clear decline in sales during 2011 is apparent. The Operating EBITA was SEK 128 M (155) and the year was marked by restructuring that will continue during 2012. Not least at Bonnier Corporation in the U.S., where the advertising market is still significantly below levels before the financial crisis. While digital sales volumes increased dramatically, they require continued investments but also represent a big opportunity. Bonnier Broadcasting & Evening Paper covers TV, radio and eve-
ning newspapers. This business area includes TV4 AB, with C More Group AB, MTV Media Oy in Finland and the evening newspapers Expressen, GT and Kvällsposten. Sales increased in 2011 slightly over last year’s record level. The Operating EBITA decreased to SEK 917 M (1,260) following extensive investments in broadcasting rights and positioning in the various Nordic markets. For example, the repositioning of the Swedish channel Sjuan (previously TV4+), the launch of TV11 and the investments in Nyhetsbolaget and TV4 News. In December, Finnish MTV Media received a national broadcasting license for the TV channel AVA. Expressen’s circulation fell during 2011 but through cost savings and an increase in the price of single copies from SEK 11 to SEK 12, the paper continues to be profitable. Bonnier Entertainment covers mainly film and music. This business area includes Svensk Filmindustri (SF) with activities in all the Nordic countries as well as SF Bio with cinemas in Sweden and Norway. Homeenter sells film and music throughout the Nordic region and Bonnier Gaming operates and markets gaming concepts on the Internet. The Operating EBITA was SEK 273 M (280), with sales decreasing slightly as well. SF Bio’s market share in Sweden declined some in the growing Swedish cinema market, while continued expansion in Norway was made possible through a contract to build the new Festningen Kino cinema in Oslo, which will be the country’s biggest movie theater. Bonnier Business Press publishes mainly daily business news-
papers. In addition to Dagens industri in Sweden and Børsen in Denmark it publishes Äripäev in Estonia, Verslo Žinios in Lithuania, Delovoj Peterburg in Russia, Puls Biznesu in Poland and Finance in Slovenia. The Russian weekly Delovaja Gazeta Yug is published in Krasnodar in Russia. The business area includes the Internet sites dp.ru in Moscow, rynok.biz in the Ukraine and cv.lt in Lithuania. Medicine Today International is included in the business area. Business Press succeeded in improving its EBITA to SEK 248 M (210) with positive developments for Dagens industri in Sweden, Børsen in Denmark and in Eastern Europe, where the fall of the advertising market finally reached bottom and the results of consolidations made the previous year began to bear fruit. The Bulgarian business daily Pari was sold during the year. Bonnier Morning Paper publishes daily newspapers in Sweden.
The Swedish newspaper operations comprise the large city morning newspapers Dagens Nyheter (Stockholm) and Sydsvenskan (Malmö) as well as Premo (50 percent) and the Swedish daily press printing operations in Bold Printing Group.
The sales were unchanged and Operating EBITA amounted to SEK 84 M (115). Dagens Nyheter strengthened its performance through cost savings and increased ad sales, primarily for DN.se. Sydsvenskan’s ad sales revenues fell compared with the previous year, which resulted in negative returns and an extensive restructuring program conducted during the second half of the year. In the fall, Bonnier sold its shares in the three newspapers that were part of Skånemedia. Other consists of group-wide activities and functions. This includes
the work of the business area Digital, which is under development, including costs to establish Bonnier Solutions, a shared service center for Bonnier’s Nordic operations. The effect on the group’s Operating EBITA for these activities during 2011 was SEK –403 M (–310) . Acquisitions and divestments. Acquisitions were carried out to a value of SEK 442 M1). Divestments amounted to SEK 707 M with a total capital gain of SEK 522 M. The most significant acquisitions and divestments of the year were: • Bonnier Books AB acquired the last 15 percent of Adlibris AB. • Bonnier Kiryat Oy acquired WSOY. • Bonnier Tidskrifter acquired 60 percent of Mediafy AB. • Bonnierförlagen divested Bonnier Utbilding AB. Cash flow influence of the years acquisitions and divestments amounted to net SEK 178 M. Geographical distribution Net sales by geographical market SEK M Sweden Finland Norway Denmark United States Germany Other markets Total
2011 16,785 3,713 2,579 2,000 1,885 1,677 1,180 29,819
2010 16,326 3,587 2,621 2,107 2,141 1,765 1,277 29,824
Change, % 2.8 3.5 –1.6 –5.1 –12.0 –5.0 –7.6 0.0
The foreign share of sales decreased by 1.5 percentage points to 43.7 percent. Investments and net debt Change in net debt, condensed SEK M Funds generated internally Change in working capital Net investments in operations Free cash flow Net acquisitions and divestments of operations, shareholdings and participations Cash flow after acquisitions and divestments Group contributions, dividends etc. Translation difference Change in net debt
2011 4,791 –314 4,477 –4,507 –30
2010 4,918 –39 4,879 –4,383 496
264 234 –407 –57 –230
907 1,403 –326 213 1,290
Net debt increased during the year by SEK 230 M. Free cash flow in relation to sales was –0,1 (1.7) percent. The Parent Company’s investments amounted to SEK 2,091 M
(29), of which tangible fixed assets accounted for SEK 1 M (1) and investments in shares and participations for SEK 2,090 M (28). The Parent Company’s liquid funds amounted to SEK 0 M (0) at year-end.
The values of acquisitions and divestments refer to the effect on net debt.
1)
4
bonnier ab annual report
2011
Board of Directors’ Report
Capital structure Operating capital SEK M Tangible and intangible fixed assets, excl. goodwill Working capital Other financial assets Goodwill Operating capital
31 dec 2011 5,776 409 205 8,628 15,018
31 dec 2010 5,420 65 233 9,066 14,784
Net debt Shareholders’ equity and minority interests Financing of operating capital
7,437 7,581 15,018
7,207 7,577 14,784
0.98
0.95
Net debt/shareholders’ equity1), multiple 1)
Including minority interests. For definition see Note 38 in the Annual Report.
Net debt/equity ratio1) (gearing) was 0.98 (0.95). The equity/assets ratio1) decreased by 0.2 percentage points to 31.3 (31.5) percent. Research and development. The Group’s research and development operations are primarily conducted by the concerned business areas. Bonnier Media University and Bonnier Research & Development are at the central Group level. Personnel and personnel policy. The average number of employees amounted to 10,144 (10,100), an increase of 44. In the Parent Company the average number was 38 employees (49). Bonnier AB particularly values talent, entrepreneurship, professionalism and integrity and strives to do what is right, and to be the best at doing it. The work environment is sensitive to change and decision-making paths are short. Bonnier AB attracts and develops the best employees in the industry, offering them good personal development and career opportunities in a work environment characterized by creativity, success, job satisfaction, an atmosphere of openness and tolerance. Ideas flow. In 2011, more than 250 employees actively saved an amount of their salary each month in a skills insurance program while the company contributed a corresponding amount. Started in 2000, the program continues in 2012. These funds can be used for payment of wages and salaries during future training/education programs. In consultation with their particular managers, many employees financed their training and skills development by this means during the year. In addition, Bonnier AB conducts its own educational program, Bonnier Media University, responsible for inspiration and leadership development for key staff in the Bonnier Group. It includes international training program for leadership and business development, as well as seminars and conferences for the inspiration and networking. In 2011, just over 1,000 people participated in such activities. Bonnier Media University is also leading the distribution of National Journalism Award in Sweden, Finland and Estonia. Corporate Social Responsibility. This concept, CSR, includes environmental impact and social responsibility. The Group has operations in more than 170 companies in 16 countries. All business areas shall carry on an active environmental effort. The business area managers have the responsibility for the environmental work within the respective business area, while the President for each company within the group determines the scope and forms of the environmental inputs in accordance with Bonnier AB’s environmental policy. The ambition is to produce products and services with the aid of processes and methods that generate minimal negative environmental impact. Bonnier AB’s CSR Council, where all business areas are represented, is a platform for the interchange of experiences and co-operation and pushes forward the environmental work as well as preparing policy proposals on important issues. CSR Council reports to the Group Management. 1)
Environmental impact. The Group’s subsidiary DNEX Tryckeriet AB conducts activities that require a permit in accordance with the Swedish Environmental Code. Operations mainly impact the external environment through emissions to air in connection with handling organic solvents. Social responsibility. Bonnier AB creates work opportunities
and contributes to development within the community. Providing meaningful jobs to our employees and providing culture, news, information, knowledge, analysis and entertainment to the general public and the advertising market is a major responsibility. Bonnier AB welcomes the increasing demands made on companies by consumers in regard to ethics and responsibility. The Group strives to ensure that products and services procured externally are manufactured under reasonable work conditions and it places demands on suppliers and partners. Child labour, discrimination, deficiencies in regard to health and safety, and indentured servitude are examples of unacceptable conditions that Bonnier AB does not accept and strives to avoid through this policy and the demands placed on suppliers. Financial policy. Management of foreign exchange transactions is determined by the Group’s financial policy. Long-term holdings in subsidiaries are not hedged since this is considered to be advantageous for the long-term risk diversification and it also avoids a short-term negative impact on liquidity. Except for some local financing in the currency used by the subsidiary concerned, financial transactions are confined to the Parent Company and its financing company. Group companies work mainly in local currencies and primarily in their own markets. As a result, major currency risks are uncommon, and are normally hedged. The Group’s financial policy regulates the interest-rate risk. Interest-rate risk is the risk that changes in the market interest rate will affect the Group’s net of interest income and expense adversely. The fixed-interest term of the loan determines how rapidly the change in rate impacts the net interest income and expense. The standard is that the average fixed-interest period of net debt should be 12 ± four months. Board activities during the year. The Board of Directors of Bonnier AB consists of nine members elected by the shareholder, and three members and three deputy members appointed by trade union organizations. The company’s Chief Financial Officer attended meetings on a regular basis, and other senior executives attended in a reporting capacity. The Board held six meetings during the year at which minutes were taken. In addition to decisions taken, the minutes also indicate the basis for decisions and provide an account of discussions. The meetings follow an agenda distributed prior to meetings, and the Board receives full documentation of the issues to be discussed in advance. The Board’s operations comply with procedural instructions. A remuneration committee determines salaries, incentive programs and other conditions of employment for the President. The Board of Directors has an Audit Committee. The Committee is led by Chairman of the Board Carl-Johan Bonnier. Other committee members include Arne Karlsson (Board member) and Jonas Nyrén (President of the Parent Company Bonnier Holding AB). The company’s CFO Göran Öhrn presents reports to the committee. The company’s auditors are co-opted onto the committee. The committee’s principle task is to support the Board with respect to monitoring risk management, internal control in systems and processes, financial reporting and the audit. Work includes approval of the auditors’ risk analysis, audit plan and fees. The work also includes a review of the auditors’ report on their examination of the administration and internal control, applied accounting policies, annual accounts and the annual report.
For definition see Note 38 in the Annual Report.
bonnier ab annual report
2011
5
Board of Directors’ Report
To satisfy the Board’s information requirement, the company’s auditors participate in one Board meeting each year. On this occasion, the auditors present a brief report on their observations from the annual audit. Parent Company. The Parent Company includes primarily Group-wide functions. Net sales and profit/loss SEK M Net sales Of which, invoicing to other Group companies Profit before appropriations and tax
2011 58 35 220
2010 54 33 542
Outlook for 2012. Profit for 2012 depends heavily on the economic development of our environment and is expected to be slightly better than 2011.
Summary of earnings and financial position Condensed income statement SEK M Net sales Advertising tax Other operating revenues Operating costs1) Amortization and write-downs of goodwill Depreciation and write-downs Share of profit/loss in associated companies Operating profit2) Result from financial investments Profit after financial items Tax expense for the year Minority share of profit for the year Profit for the year
2011 29,819 –47 707 –24,455 –808 –4,239 42 1,019 –355 664 –264 63 463
2010 29,824 –48 300 –23,945 –788 –3,861 40 1,522 –522 1,000 –284 –5 711
–7,014
–6,880
407
80
31 dec 2011 8,628 3,997 1,780 57 214 1,251 1,311 3,653 2,465 482 350 24,188
31 dec 2010 9,066 3,818 1,603 33 239 1,103 1,371 3,383 2,267 752 427 24,062
Shareholders’ equity Minority interests Interest-bearing provisions and liabilities1) Restructuring reserve
7,172 409 8,070 256
7,025 552 8,224 195
Accounts payable – trade Subscription liabilities and other advances from customers Other noninterest-bearing provisions and liabilities Total shareholders’ equity and liabilities
2,556
2,240
1,544
1,562
4,181 24,188
4,264 24,062
1)
Of which, personnel costs, see also Note 9
2)
Of which, items affecting comparability
Condensed balance sheet SEK M Goodwill Other intangible fixed assets Tangible fixed assets Interest-bearing long-term receivables Other financial assets Deferred tax receivables Inventories Accounts receivable – trade Other current assets Interest-bearing current receivables1) Short-term investments, cash and bank balances Total assets
Including accrued and prepaid interest income and expenses.
1)
6
bonnier ab annual report
2011
Board of Directors’ Report
Change in shareholders’ equity SEK M Shareholders’ equity, opening balance
2011 7,025
2010 7,024
Dividend Translation difference Group contributions granted Tax on Group contributions granted Total direct charges to shareholders’ equity
–271 6 –69 18 –316
–255 –374 –110 29 –710
Profit for the year Shareholders’ equity, closing balance
463 7,172
711 7,025
Board of Directors and President’s Proposed Disposition of Unappropriated Earnings
The following earnings are at the disposal of the Annual Meeting:
Condensed cash-flow statement SEK M Operating activities Profit after taxes paid Items not included in cash flow Change in working capital Cash flow from operating activities Investing activities Net investments in operations Net acquisitions and divestments of operations, shares and participations
2011
2010
323 4,442 –314 4,451
472 4,941 –39 5,374
–4,507
–4,383
264
906
–4,243
–3,477
Cash flow after investing activities
208
1,897
Financing activities Dividend/Group contributions Net borrowing/amortization Cash flow from financing activities
–395 54 –341
–326 –1,341 –1,667
Cash flow for the year
–133
230
Liquid funds Liquid funds, Jan. 1 Cash flow for the year Translation difference Liquid funds, Dec. 31
427 –133 56 350
228 230 –31 427
2011
SEK 13,753,166,935 215,985,332 13,969,152,267
The Board of Directors and the President propose that these funds be disposed of as follows: Dividend to the shareholder of SEK 50.52 per share, total To be carried forward to new account
Cash flow from investing activities
bonnier ab annual report
Retained earnings Earnings in 2011
303,120,000 13,666,032,267 13,969,152,267
Board’s statement regarding the proposed dividend Before the proposed dividend, the Bonnier AB Group’s nonrestricted shareholders’ equity amounts to SEK 5,371 M and after the dividend to SEK 5,068 M. The equity/assets ratio before the dividend is 31.3 percent and is reduced, if the proposed dividend is implemented, by 0.8 percentage points to 30.5 percent. This equity/assets ratio is satisfactory against the background that the Group’s operations is expected to be carried out with profit and positive cash flow. The Parent Company’s non-restricted shareholders’ equity is SEK 13,969 M before the proposed dividend and after the dividend SEK 13,666 M. The equity/assets ratio before the dividend is 67.3 percent and is reduced with the proposed dividend with 0.5 percentage point to 66.8 percent. The Group reports a net debt of SEK 7,437 M. Liquidity is satisfactory. It is the Board’s opinion that the proposal for disposition of unappropriated earnings does not hinder the companies included in the Group from meeting their obligations in the short and long term nor from completing necessary investments. Accordingly, the proposal for disposition of unappropriated earnings is consistent with the requirements placed by the form, scope and size of the operations on shareholders’ equity and take into account the company’s consolidation needs, liquidity and financial position in general. The dividend can be justified in relation to the Swedish Companies Act’s prudence principle in Chap. 17, Section 3, Para. 2–3. The dividend will be paid on May 16, 2012. In the prepared annual report a Group contribution of SEK 69 M was provided to the Parent Company Bonnier Holding AB by another Group company.
7
Income Statements SEK M Net sales Advertising tax Other operating revenues Operating costs Raw materials and supplies Goods for resale Other external costs Personnel costs Amortization/depreciation and write-downs of intangible and tangible fixed assets Other operating costs
Note 2, 3 9
6, 7, 9 4, 5, 9 8
Total operating costs Share of profit/loss in associated companies before tax
10
Operating profit/loss
2, 9
Income from financial investments Income from participation in subsidiaries Income from other securities and receivables held as fixed assets Other interest income and similar items Interest expense and similar items Total income from financial investments
11 12 13 13
Profit after financial items Appropriations Tax on profit for the year Minority participations in profit for the year PROFIT FOR THE YEAR
14 15
Cash Flow Statements SEK M Operating activities Profit after financial items Adjustments for items not included in cash flow, etc.
Note
Group 2011 29,819.1 –46.9 706.6 30,478.8
2010 29,824.3 –47.8 299.9 30,076.4
–3,256.7 –5,333.7 –8,791.0 –7,014.3
–3,359.9 –5,013.5 –8,623.7 –6,879.6
–5,046.8 –59.0
Parent Company 2011 57.5
2010 54.0
0.7 58.2
0.6 54.6
–170.5 –84.9
–161.9 –99.3
–4,648.6 –69.3
–2.0
–2.1
–29,501.5
–28,594.6
–257.4
–263.3
41.6
40.0
1,018.9
1,521.8
–199.2
–208.7
6.0 57.0 –418.0 –355.0
4.4 29.6 –555.6 –521.6
662.3 62.3 46.7 –352.2 419.1
848.8 59.5 12.6 –170.7 750.2
663.9
1,000.2
219.9
541.5
–263.8 63.2 463.3
–283.7 –5.4 711.1
–3.9
–40.5 –29.3
216.0
471.7
Group 2011
2010
Parent Company 2011
2010
Taxes paid Cash flow from operating activities before change in working capital
663.9 4,442.3 5,106.2 –341.1 4,765.1
1,000.2 4,941.1 5,941.3 –528.5 5,412.8
219.9 753.6 973.5 –32.0 941.5
541.5 –143.9 397.6 –148.9 248.7
Change in working capital Cash flow from operating activities
–314.0 4,451.1
–39.3 5,373.5
30.5 972.0
38.3 287.0
263.7 –4,507.4
906.6 –4,383.2
–4,243.7
–3,476.6
–64.2 –0.9 –657.8 282.2 –440.7
–28.4 –0.9 –68.0 757.0 659.7
Financing activities New borrowing/receivables repaid, net Liabilities and receivables via acquisitions and divestments New borrowing, etc. Amortization of debt Group contributions Dividend paid Cash flow from financing activities
74.8 –85.6 972.2 –907.6 –142.4 –252.2 –340.8
–625.9 –10.9 1,727.1 –2,431.6 –62.1 –264.3 –1,667.7
566.5 –826.6 –0.1 –271.1 –531.3
1,204.1 –1,895.5
Cash flow for the year Liquid funds, Jan. 1 Translation difference in liquid funds Liquid funds, Dec. 31
–133.4 427.1 55.9 349.6
229.2 228.2 –30.3 427.1
0.0 0.0
0.0 0.0
0.0
0.0
Investing activities Acquisition and divestment of operations Acquisition and divestment of fixed assets New lending Amortization received Cash flow from investing activities
8
16
–255.3 –946.7
bonnier ab annual report
2011
Balance Sheets at December 31 SEK M ASSETS Fixed assets Intangible fixed assets
Note
Tangible fixed assets Buildings and land Plant and machinery Equipment, tools, fixtures and fittings Construction in progress and advance payments for tangible fixed assets
Financial fixed assets Participations in subsidiaries Participations in associated companies Other securities held as fixed assets Interest-bearing receivables Noninterest-bearing receivables
Group 2011
2010
Parent Company 2011
2010
17, 28
12,624.8
12,883.8
29 29 29, 30
280.3 403.2 660.1
336.3 535.2 673.2
4.6
5.7
436.0 1,779.6
58.1 1,602.8
4.6
5.7
13,020.4 165.0 49.5 56.6 1,250.8 1,521.9
152.5 86.7 33.0 1,103.0 1,375.2
16,094.6 0.7
2,817.6 33.6 15,871.6
2,534.0 33.9 18,663.2
15,926.3
15,861.8
15,876.2
18,668.9
4,909.0 605.6 5,514.6
83.7 660.7 744.4
18
32, 34, 35 19, 31, 32 31, 32 31, 32 31, 32
Total fixed assets Current assets Inventories, etc.
20
1,311.2
1,371.0
Short-term receivables Interest-bearing receivables Noninterest-bearing receivables
21 21, 22
416.7 6,184.0 6,600.7
721.2 5,681.1 6,402.3
2.1 347.5
3.3 423.9
8,261.5 24,187.8
8,200.5 24,062.3
5,514.6 21,390.8
744.4 19,413.3
300.0
300.0
300.0 91.8
300.0 91.8
1,501.5
1,545.2 391.8
391.8
4,907.5
4,468.3
463.3
711.1
7,172.3
7,024.6
13,753.1 216.0 13,969.1 14,360.9
13,552.6 471.7 14,024.3 14,416.1
41.6
41.7
Short-term investments Cash and bank balances Total current assets TOTAL ASSETS SHAREHOLDERS’ EQUITY AND LIABILITIES Shareholders’ equity Share capital (5,228,296 Series A shares and 771,704 Series C shares)1) Statutory reserve Restricted reserves Restricted equity in the Parent Company Non-restricted reserves Profit brought forward Profit/loss for the year Non-restricted equity in the Parent Company Total shareholders’ equity Untaxed reserves Minority interests Provisions Interest-bearing provisions Noninterest-bearing provisions Total provisions
23, 33, 36, 37 23, 33
Long-term liabilities Interest-bearing liabilities Noninterest-bearing liabilities Total long-term liabilities
24, 25, 36 24
Current liabilities Interest-bearing liabilities Noninterest-bearing liabilities Total current liabilities TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES Pledged assets Contingent liabilities 1)
26, 36 26, 27
36 37
409.1
552.5
1,677.3 377.7 2,055.0
1,714.9 387.2 2,102.1
166.7
158.9
166.7
158.9
5,329.2
2,555.1
1,831.5
5,329.2
5,251.0 7.9 5,258.9
2,555.1
1,831.5
1,260.6 7,961.6 9,222.2 24,187.8
1,415.9 7,708.3 9,124.2 24,062.3
1,919.4 2,347.1 4,266.5 21,390.8
2,764.5 200.6 2,965.1 19,413.3
5.7 291.7
51.0 253.4
4,901.5
10,128.4
All shares are paid in full, and the number remained unchanged during 2010 and 2011. Series A shares carry one vote and Series C shares carry 10 votes. The shares quota value is 50.
bonnier ab annual report
2011
9
Change in Shareholders’ Equity Share capital 300.0
SEK M Opening balance, Jan. 1, 2010 Appropriation of profit Dividend Translation difference Group contributions granted Tax on Group contributions granted Transfer between restricted and non-restricted reserves Profit for the year
14.1
Opening balance, Jan. 1, 2011 Appropriation of profit Dividend Translation difference Group contributions granted Tax on Group contributions granted Transfer between restricted and non-restricted reserves Profit for the year Closing balance, Dec. 31, 2011
300.0
300.0
Share capital 300.0
SEK M Opening balance, Jan. 1, 2010 Appropriation of profit/loss Dividend Profit for the year Opening balance, Jan. 1, 2011 Appropriation of profit/loss Group contributions Dividend Profit for the year Closing balance, Dec. 31, 2011
10
Restricted reserves 1,531.1
300.0
1,545.2
Group Nonrestricted reserves 5,574.3 –381.5 –255.3 –374.3 –109.6 28.8 –14.1
–43.7
4,468.3 711.1 –271.1 6.4 –69.0 18.1 43.7
1,501.5
4,907.5
Statutory reserve 91.8
91.8
91.8
Total 7,023.9 –255.3 –374.3 –109.6 28.8
711.1
711.1
711.1 –711.1
7,024.6 –271.1 6.4 –69.0 18.1
463.3 463.3
463.3 7,172.3
Parent Company Profit/loss brought Profit/loss forward for the year 12,954.4 853.5 853.5 –853.5 –255.3 471.7
Total 14,199.7
13,552.6 471.7 –0.1 –271.1
300.0
Profit/loss for the year –381.5 381.5
13,753.1
471.7 –471.7
216.0 216.0
–255.3 471.7 14,416.1 –0.1 –271.1 216.0 14,360.9
bonnier ab annual report
2011
Notes to the Financial Statements Note 1 Principles of accounting and valuation The annual report is prepared in accordance with the Annual Accounts Act and general recommendations of the Swedish Accounting Standards Board. Bonnier AB is not a listed company and thus does not report according to International Financial Reporting Standards, IFRS. However, Bonnier AB complies with the former Swedish Financial Accounting Standards Councils recommendations (RR) and statements (URA) to the extent that these are applicable to non-listed companies according to the Swedish Accounting Standards Board. The Group’s valuation principles agree with these recommendations whereas Bonnier AB deviates from certain of the requirements for information. The income statement employs classification of items by type of cost. This form of presentation conforms more closely with the Group’s internal control systems than allocation by functions. During 2011, the subsidiary C More Entertainment AB changed its accounting principle for sales via distributor. Previously, the sales from the distributor was reported as Net sales and commissions as Other external costs. Now sales, after deducting of distributor commissions, are reported as Net sales. For 2010, the comparative figures for Net sales are restated by SEK –753.6 M. The corresponding reduction has been made in Other external costs. Consolidated accounts. The consolidated accounts include subsidiaries in which the Parent Company directly or indirectly has decisive influence. The consolidated financial statements have been prepared in accordance with the purchase method, whereby the equity in subsidiaries at the date of acquisition – established as the difference between the actual values of the assets and liabilities – is eliminated in its entirety. Accordingly, Group equity only includes the proportion of subsidiaries’ equity arising after the date of acquisition. When the Group’s acquisition value for shares is higher than the value shown in the acquisition analysis of the subsidiary’s net assets, the difference is reported as Group goodwill. The accounts of foreign subsidiaries are translated into SEK in accordance with the current-rate method, whereby all balance sheet items are translated at year-end exchange rates, while the income statements are translated at the average rate for the year. The resulting translation difference is credited/charged directly to restricted and non-restricted reserves in accordance with the Swedish Financial Accounting Standards Council’s recommendation. Income of companies acquired during the year is consolidated for the period after the date of acquisition. Income of companies sold during the year is included in the consolidated accounts up until the date of sale. Internal profits within the Group are eliminated in their entirety, without taking minority interests into account. Minority participation in profit/loss for the year is reported in the consolidated income statement. Minority participation in the equity of subsidiaries is reported in a separate item in the consolidated balance sheet. Accounting for associated companies. Companies which are not subsidiaries, but in which the Parent Company has a significant influence and in which the Parent Company directly or indirectly holds at least 20 percent of the voting rights for all participations are regarded as associated companies. See Note 10 and Note 19. Associated companies are reported in the consolidated accounts by applying the equity method in accordance with RR 13. In the equity method, consolidation primarily takes the form of separate lines in the consolidated income statement and consolidated balance sheet. In the income statement, the Group’s share of earnings in associated companies after financial items is reported on a separate line as part of Group operating profit/loss. Shares of taxes in associated companies are included in Group tax expense. Participations in associated companies are reported in the balance sheet under financial assets. The item is increased or decreased by a percentage of income after deduction for any dividends received.
bonnier ab annual report
2011
Certain associated companies that are partnerships, and are mainly owned by SF Bio AB, have been reported in a manner stipulated by RR 13, appendix 1. Joint ventures. Operations where Bonnier AB is joint owner under agreement on joint determining influence are classified as joint ventures. The Group is only involved in joint ventures which constitute a separate legal entity and these are reported in the Group financial statements according to the proportional method. The proportional method means that the Group’s share of assets, liabilities, income and expense in the jointly controlled company is merged item by item with equivalent items in the Group’s income statement and balance sheet. Interests in joint-owned companies are reported in the parent company at acquisition value with deduction for any write-downs. Cash flow statements. The cash flow statements have been prepared in accordance with the indirect method. The reported cash flow only includes transactions that result in incoming or outgoing payments. In addition to cash and bank balances, financial instruments exposed merely to an insignificant risk of fluctuations, which are traded in an open market at known amounts or with a maximum maturity of three months, have also been classified as liquid funds. Fixed assets. Straight-line amortization/depreciation of intangible and tangible fixed assets is based on historical cost and is systematically written off over the estimated useful life of the asset. The following annual rates of amortization/depreciation are applied: Intangible fixed assets Buildings and land
5–20 percent 1–5 percent
Plant and machinery
5–33 percent
Equipment, tools, fixtures and fittings
5–33 percent
A 20 percent amortization is normally applied to intangible assets. On acquisition values of more than SEK 5 M a lower percentage rate may be used if special reasons justify this. The most important deviations from 20 percent amortization for intangible assets are as follows: Goodwill arising from the acquisition of Sydsvenska Dagbladets AB is amortized at 5 percent per year. This goodwill is attributable to the special value of the publishing licenses held by the newspapers acquired, and their strong positions in the local markets in Skåne. The same rate of amortization of goodwill was applied to the acquisition by Sydsvenska Dagbladets AB of the Allehanda Syd Group and its very strong local newspapers, Ystads Allehanda and Trelleborgs Allehanda. This also applied to the application of the equity method for the acquisition of Kristianstadsbladet AB and was justified by the strong position of the Kristianstadsbladet newspaper in its market. In 2002, operations were restructured and the three newspapers formed Skånemedia AB. As a result of adjustment to the earlier time schedule, goodwill in this company is amortized over 18 years. Operations in Skånemedia was sold late 2011. A 5 percent goodwill amortization is applied to the TV operations. This is justified by the possession of strong brands on the TV market in the Nordic region. A 5 percent goodwill amortization is applied to Bonnier Corporation (holding 80%) and is justified by the company’s strong position within special periodicals for sports, fishing, boats and science as well as leading titles for new parents and parents-to-be. 5 percent amortization is applied to goodwill from the acquisition of Cappelen Damm Holding AS (ownership interest 50%) and is justified by the company’s strong position as one of Norway’s largest publishing groups with a broad market basis and high quality publication activities within all areas of literature. Amortization of 6.67 percent (15 years) is applied to AB Kvälls tidningen Expressen’s acquisition of GT/Göteborgs-Tidningen AB,
11
Notes to the Financial Statements
Note 1 cont. and is warranted by the strong position GT has in the local newspaper market in Gothenburg. Amortization of 10 percent is applied to the book publishers arsEdition GmbH, Ullstein Buchverlage GmbH and Thienmann Verlag GmbH in Germany, The Five Mile Press Pty Ltd. in Australia and the children’s book publisher The Templar Company Ltd. in UK due to the stability of operations and portfolio of strong book titles. 10 percent amortization is applied to Weldon Owen Publishing, Inc., in the US, which is justified by the company’s leading position in branded literature. Amortization of 10 percent is applied to Adlibris AB and is justified by the company’s strong position as the dominant Internet bookstore on the Swedish market. Amortization of 10 percent is also applied to Idé-Nyt A/S, which is warranted by the fact that the newspaper is an established brand and market leader in coupon book distribution in Denmark. The same amortization rate is also applied to Forlaget Benjamin ApS as a result of the strong position that the company enjoys in the Danish magazine market. Amortization of 10 percent was applied to goodwill from the acquisition of the Russian specialty magazine publisher Bonnier Publications, OOO and is justified by the company’s strong position on the market. Amortization of 10 percent is applied to Suorayhtiöt Oy, which is justified by the company’s strong position in the distribution of coupon books in Finland, among other areas. Amortization of 10 percent for Discshop Svenska Näthandel AB and Soft Capital Investment AB is warranted by these operations’ considerable market shares in a growing market. 10 percent amortization is applied to Norsk Helseinformatikk AS, which is justified by its strong position in health informationion Norway 10 percent amortization is applied to Företagslitteratur Sverige AB and is justified because the company is well established in its field and has acted in the market for a long time. The business is profitable, has strong growth and a diverse customer base. Goodwill related to acquisitions of Mediafy AB is amortized by 10 percent per year since the company is expanding rapidly in the area selling magazine subscriptions online, in Sweden under the name Tidningskungen, and has a platform that allows for continued growth in new markets. 10 percent amortization is applied to Tailsweep AB, which is justified by its strong position in a growing market. Individual amortization is applied to acquired film and broadcasting rights depending on the conditions in each contract. The buildings and land at DNEX Tryckeriet’s Akalla printing complex and Sydsvenskan Tryck AB’s printing plant in Fosie are assumed to have a useful life of 40 years. The useful life of the buildings’ fittings and fixtures is estimated to be 15 years. A useful life of 20 years is assumed for the presses, and the life of other equipment is assumed to be 10 years. The useful life in each main category is an average, since each category contains equipment with both shorter and longer estimated useful life. The printing plants were originally designed to meet what was expected to be a growing demand – especially with respect to fourcolor and on-line insertion capacity – since this was deemed to be more rational than increasing capacity by stages. The depreciation plan recognized that utilization of capacity would rise gradually during the first 10 years after commencement of production in 1993 at Akalla and in 1994 at Fosie. This would result in a better correlation between costs and revenues. In connection with the acquisition by Bonnier AB of the Akalla printing plant in 1998, the depreciation model was changed. The value assigned to Bonnier AB’s acquisition is subject to straight-line depreciation
12
for the remainder of the above depreciation period. The depreciation model in which depreciation is based on gradually increased capacity utilization continues to apply to the Fosie plant, however. Straight-line depreciation is applied to newly acquired equipment with the abovementioned useful periods. “Month-by-month” depreciation is applied, whereby equipment purchased in January and depreciated over five years is depreciated at a rate of 20 percent in the first year, while assets purchased in December are depreciated by one twelfth of 20 percent. Film and broadcasting rights are recognized under the heading Film rights. The costs for these are reported under the heading Amortization/depreciation and write-downs of intangible and tangible assets. Guaranteed royalties, reported as Prepaid expenses, are expensed following a case-by-case review, taking into account future estimated revenues. Royalty costs are included in Other external costs in the income statement. Intangible investments that are of significant value for the business in future years, and which are of a significant size, are capitalized and amortized over a conservatively estimated useful life. Fixed assets are reported on the asset side of the balance sheet at acquisition value, after deduction for accumulated depreciation according to plan and write-downs and with addition of possible write-ups. Negative goodwill. Negative Group goodwill consists of the amount by which real value of the Group’s share of acquired net assets exceeds the acquisition value. Negative goodwill is reported as noninterest-bearing provisions. When negative goodwill is associated with expectations of future losses and costs that have been identified in the acquisition and can be measured in a reliable manner, but does not represent identifiable liabilities, this portion of negative goodwill is reported in the income statement when the future losses and costs are realized. Any outstanding negative goodwill that does not exceed the real value of the acquired nonmonetary assets is reported in the income statement on an accrual basis over the remaining weighted average useful life for these assets. The portion of negative goodwill that exceeds the real value of these assets is reported immediately in the income statement. Dissolution of negative goodwill is reported in the income statement in the item Amortization/depreciation and write-downs of intangible and tangible assets. Write-downs. If there is any indication that an asset has declined in value, an assessment is made of the asset’s reported value. In cases in which an asset’s reported value exceeds its computed recovery value, the asset is written down to its recovery value. Leasing. The financial leasing agreements concluded mainly relate to vehicle leasing, and the amount is of negligible importance in assessing the Group’s position and income. In 2010, the Group entered into a financial leasing agreement regarding Strandboulevarden 130 in Copenhagen. The property, essentially used by the Group, was sold to Danske Leasing A/S. The rent level is market based. The agreement includes a buyback right in 2016 at a fixed price. Major operational leasing agreements primarily involve rental agreements and a limited number of other leasing agreements. See also Note 6. Receivables. Receivables are stated in the amounts expected to be received, based on evaluation in each specific case. Receivables and liabilities in foreign currency. Receivables and liabilities in foreign currency are translated in the individual subsidiaries at year-end exchange rates, in accordance with RR 8. Foreign exchange gains are offset against foreign exchange losses, regardless of the currency. bonnier ab annual report
2011
Notes to the Financial Statements
Note 1 cont. Short-term investments. Short-term investments are valued at the lower of acquisition value and market value at year-end. Items affecting comparability. Profit/loss from items affecting comparability is recorded in note to the Condensed income statement on page 6 in the Board of Directors’ Report. Items affecting comparability are specified in Note 9. Valuation of inventories. Inventories are valued at the lower of cost – in accordance with the first-in/first-out principle – and net realizable value at year-end, or alternatively at 97 percent of the acquisition value.
Reporting of revenues and expenses. Sales of goods are reported on delivery to the customer in accordance with the terms and conditions of sale. Advertising revenues are reported net. Gross revenues are reduced by discounts and by advertising tax. Circulation revenues are reported net. Gross revenues are reduced by commissions and any discounts that apply. Rental income is reported for the period to which renting pertains, and royalty and similar items in accordance with the financial implication of the particular agreement. Other operating revenues comprise revenues not related to the company’s current operations. In accordance with the Act relating to Tax on Advertisements and Advertising (1972:266), advertising has in 2011 been subject to advertising tax of 3 percent (3) of taxable value. Government grants for joint distribution of newspapers, and a small number of other minor subsidies, are reported as cost reductions. Employee benefits. For defined-benefit pension plans the Group is applying RR 29. There are a number of defined-contribution as well as definedbenefit pension plans within the Group. In Sweden and Germany, the employees are covered mainly by defined-benefit pension plans and in other countries mainly by defined-contribution plans. In defined-contribution plans, the company pays a fixed fee to a separate legal entity and has no obligation to pay any additional fees. The Group’s earnings are charged with the costs incurred as the benefits are earned. In defined-benefit plans, payments are made to employees and former employees based on salary at the time of retirement on pension and the number of service years. The Group carries the risk that the committed payments are made. Defined-benefit pension plans are both funded and unfunded. The net of the calculated present value of the commitments and the current value of the managed assets is reported in the balance sheet as either a provision or a long-term financial receivable. In such cases in which the surplus in a plan cannot be utilized fully, only that portion of the surplus that the company can recover through reduced future payments or repayments is reported. The pension costs and pension commitments for definedbenefit plans are calculated based on actuarial grounds. The method distributes the costs for pensions in pace with the benefits earned by the employee through service to the company that increases their right to future payments. The company’s commitments are valued at the present value of future payments by applying a discount rate of interest that corresponds to the interest on first-class corporate bonds or alternatively government bonds with a term equivalent to the actual commitments. The interest expenses less the expected return on the managed assets are classified as a financial expense. Other cost items in the pension cost are charged against operating profit. If the pension cost and pension provisions that are determined for Swedish plans in accordance with RR 29 deviate from the corresponding amount pursuant to FAR SRS’s Recommendation RedR 4, Reporting of Pension Liabilities and Pension Costs, an bonnier ab annual report
2011
expense for a special payroll tax on the difference is also reported, in accordance with URA 43. The accounting principle described above for defined-benefit pension plans is only applied in the consolidated accounts. The Parent Company reports defined-benefit pension plans in accordance with RedR 4. The Parent Company has undertaken defined-benefit pension due to employees. The Parent Company’s obligations to pay pension in the future thus have a present value, determined for each employee by, among other factors, pension level, age and to what degree the full pension has been earned. This present value has been calculated in accordance with actuarial grounds and is based on the salary and pension levels at the closing date. The pension obligations are reported as a provision in the balance sheet. The pension commitment for salaried employees secured trough insurance with Alecta is reported in the Parent Company as a defined-contribution plan. The interest portion of pension costs for the year is reported as a financial expense. The interest rate specified by the PRI (Pension Registration Institute) is 4.5 percent (5.0). Other pension costs are charged against operating profit. Research and development. Expenditures for research programs are expensed as incurred. Development expenses are also normally expensed as incurred. These expenses primarily pertain to the development of new publishing products – paperbased and electronic – and normally do not fulfil the criteria of RR 15 for reporting as an asset in the balance sheet. Some major development projects are capitalized and amortized over their estimated useful lives. Software. Standard software is expensed. Expenses incurred for software that has been developed for or considerably adapted for the Group are capitalized if they probably offers financial advantages that exceed costs after one year. Loan costs. Interest expense for certain large investment projects has been capitalized in the consolidated accounts during the construction period. On the other hand, no capitalization has occurred in the subsidiaries concerned. The tax implications have been taken into account and are reported as deferred tax liability. Income tax. Reported income tax consists of tax to be paid or received for the year in question, adjustments pertaining to current tax for prior years, changes in deferred tax and participation in the tax of associated companies. All tax liabilities/receivables are valued at the nominal amount and in accordance with the tax regulations and tax rates determined or announced and which will certainly be approved. The concomitant tax effects for items reported in the income statement are also reported in the income statement. The tax effects of items booked directly against shareholders’ equity are reported against shareholders’ equity. Deferred tax is estimated in accordance with the balance sheet method, based on all temporary differences between reported and taxable values for assets and liabilities. Temporary differences arise mainly through valuation of loss carry-forwards and untaxed reserves. Deferred tax assets for loss carry-forward deductions or other future deductions for tax purposes are reported if it is likely that the deduction may be offset against a surplus for future taxation purposes. Due to the correlation between reporting and taxation, the deferred tax liability on untaxed reserves is reported in the Parent Company as part of untaxed reserves.
13
Notes to the Financial Statements
Note 2 Net sales and operating profit Net sales by business areas are distributed as follows: SEK M Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Total net sales
Group 2011 6,267.1 5,351.7 9,436.1 3,809.6 1,877.1 3,403.4 –325.9 29,819.1
2010 6,265.0 5,658.5 9,224.5 3,827.8 1,757.9 3,404.9 –314.3 29,824.3
Group 2011 16,785.2 3,712.7 2,579.4 2,000.3 1,884.6 1,677.3 167.4 141.1 130.0 105.8 100.4 93.5 92.8 77.3 72.3 57.6 31.9 15.5 13.4 80.6 29,819.1
2010 16,326,0 3,587.1 2,620.7 2,107.4 2,140.7 1,764.7 171.9 145.9 113.0 100.8 111.4 100.0 116.4 70.5 108.4 53.9 30.1 13,0 14.9 127.5 29,824.3
Group 2011 805.2 –55.9 428.7 192.5 218.8 187.2 –757.6 1,018.9
2010 615.5 –37.1 1,002.3 268.3 190.0 44.0 –561.2 1,521.8
Parent Company 2011 2010
57.5 57.5
54.0 54.0
Net sales by geographical markets are distributed as follows: SEK M Sweden Finland Norway Denmark United States Germany Russia UK Australia Poland Austria Slovenia France Estonia Switzerland Netherlands Lithuania Italien Spain Other markets Total net sales
Parent Company 2011 2010 54.2 50.4 2.3
2.5 0.1
1.0
1.0
57.5
54.0
Operating profit/loss (EBIT) by business areas are distributed as follows: SEK M Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Total operating profit/loss (EBIT)
Parent Company 2011 2010
–199.2 –199.2
–208.7 –208.7
Note 3 Intra-group transactions
Purchases, % Sales, %
Parent Company 2011 2010 23.1 20.2 60.2 61.5
The price applied in connection with purchases and sales between Group companies is normally the lowest price in transactions with external parties.
14
bonnier ab annual report
2011
Notes to the Financial Statements
Note 4 Average number of employees, etc. Average number of employees
2011 Number of employees 38
Parent Company Subsidiaries Sweden United States Denmark Finland Germany Russia Norway Poland Estonia Slovenia Lithuania UK Australia Bulgaria France Ukraine Malta Belgium Subsidiaries Joint ventures in Norway Group
of whom women, % 61
2010 Number of employees 49
of whom women, % 53
5,331 1,060 784 714 435 364 237 221 173 133 96 88 64 47 45 23 4 2 9,821
49 55 52 53 75 62 60 58 74 65 71 61 69 26 49 83
5,357 1,050 805 709 423 333 224 204 165 135 87 83 59 74 43 20
50 55 51 58 75 64 62 55 72 63 25 61 73 26 49 65
50 53
9,771
54
285 10,144
65 54
280 10,100
66 54
The average number of employees is calculated as the average number of employees on various dates during the year. Part-time employment is translated to full-time.
Board members and senior executives
2011 Number on closing date
of whom women, %
2010 Number on closing date
of whom women, %
Group Board members Presidents and other senior executives
835 548
21 31
810 496
20 29
Parent Company Board members President and other senior executives
12 9
17 56
11 3
18
bonnier ab annual report
2011
15
Notes to the Financial Statements
Note 5 Wages, salaries, other remuneration and social security costs Principles for remuneration to the Board and senior executives The Annual Meeting approves fees paid to Board members. Certain Board members of Bonnier AB are also paid fees for their work on the Boards of subsidiaries. Board members elected by the Annual Meeting and who are employed by Bonnier AB with subsidiaries, as well as employee representatives, do not receive Board fees from the Bonnier AB Group. The Chairman is remunerated by Bonnier Holding AB, Parent Company of Bonnier AB. A remuneration committee (Board Chairman Carl-Johan Bonnier as well as Board members Pontus Bonnier and Arne Karlsson) makes decisions concerning terms of employment for the President. The terms of employment for other senior executives are Group
SEK M Parent Company Subsidiaries Joint ventures Group
determined by the President in consultation with the Board Chairman. Variable portions of commissions on profits or bonuses have ceilings denominated in SEK or as a percentage of the basic salary. Agreement on severance pay and termination period For the President, the period of notice is 6 months when notice is served by the President and 18 months when served by the company. No severance pay is provided. The period of notice for other senior executives normally amounts to between 6 and 12 months. The period of notice when served by the company is subject to agreements and in certain cases there are also agreements covering severance pay.
2011 Wages/salaries and other remuneration 46.3 4,854.8 165.4 5,066.5
2010
Social security costs 36.8 1,540.3 42.0 1,619.1
SEK 0.7 M (1.4) of the Parent Company’s pension costs pertains to current President. SEK 6.9 M (6.3) pertains to members of the Board and former Presidents (incl. Executive Vice Presidents). The company’s pension obligations to these persons, which are reported as a liability, amount to SEK 85.5 M (90.2).
(of which pension costs) 16.1 433.4 15.6 465.1
Wages/salaries and other remuneration 58.5 4,780.9 167.0 5,006.4
Social security costs 41.5 1,508.6 41.1 1,591.2
(of which pension costs) 17.8 471.8 14.6 504.2
SEK 32.4 M (29.6) of the Group’s pension costs pertains to members of Boards and Presidents. The Group’s pension obligations to these persons, which are reported as a liability, amount to SEK 194.8 M (196.6).
Wages, salaries and other remuneration distributed among Boards and Presidents and Other employees:
SEK M Parent Company Subsidiaries Joint ventures Group
16
Boards and Presidents 9.4 206.1 2.5
2011 (of which bonus, etc.) 1.3 49.1 0.5
Other employees 36.9 4,648.7 162.9
Boards and Presidents 9.8 201.6 2.3
218.0
50.9
4,848.5
213.7
2010 (of which bonus, etc.) 1.9 44.7 46.6
Other employees 48.7 4,579.3 164.7 4,792.7
bonnier ab annual report
2011
Notes to the Financial Statements
Note 6 Leasing agreements SEK M Financial leasing agreements
Group 2011
2010
Parent Company 2011
856.6
892.7
11.0
11.8
849.8 2,450.1 1,531.8
787.7 2,523.7 1,830.8
8.8 18.7
6.2 18.9
2010
The Group has entered into a financial leasing agreement regarding Strandboulevarden 130, see below. Other financial leasing primarily involves the leasing of vehicles. Operational leasing agreements Operational leasing agreements of material importance primarily involve rental agreements and a limited number of other leasing agreements. Leasing fees for the year Contracted future leasing fees Within 1 year 1–5 years More than 5 years
In 2010, Bonnier Publications A/S sold its property at Strandboulevarden 130 in Copenhagen to Danske Leasing A/S. The property is essentially used by the seller, who pays market-based
rent. Bonnier AB has taken on a joint rent lease. Bonnier Publications A/S is entitled but not obliged to buy back the property in 2016 at a fixed price.
Note 7 Fees to auditors Group 2011
2010
17.2 1.7 1.8 9.1
18.4 0.5 1.9 5.5
KPMG AB Audit fees Audit-related fees Tax advisory fees Other fees
2.8 0.2 0.3 0.6
3.5 0.3 1.1 0.7
Other auditors Audit fees Audit-related fees Tax advisory fees Other fees Total
3.5 0.4 1.4 1.3 40.3
3.1 0.4 2.2 0.3 37.9
SEK M Öhrlings PricewaterhouseCoopers AB Audit fees Audit-related fees Tax advisory fees Other fees
Parent Company 2011
2010
1.6 0.2 0.4 2.2
1.9
4.4
5.0
0.5 2.6
Note 8 Amortization/depreciation and write-downs of intangible and tangible fixed assets SEK M Intangible fixed assets (see also Note 28) Tangible fixed assets (see also Note 18 and 29) Total
bonnier ab annual report
2011
Group 2011 –4,649.0 –397.8 –5,046.8
2010 –4,242.7 –405.9 –4,648.6
Parent Company 2011 –2.0 –2.0
2010 –2.1 –2.1
17
Notes to the Financial Statements
Note 9 Items affecting comparability SEK M Capital gain on subsidiaries and associated companies sold Restructuring costs Total
Group 2011 522.3 –115.1 407.2
2010 158.4 –78.4 80.0
Items affecting comparability are shown in the following lines in the income statement: Other operating revenues Other external costs Personnel costs Total
558.9 –36.6 –115.1 407.2
164.0 –5.6 –78.4 80.0
Note 10 Share of profit/loss in associated companies before tax The Group’s participation in associated companies with not insignificant profit/loss and in shareholders’ equity is presented in the consolidated a ccounts in accordance with the equity method,
SEK M Borås Tidning Tryckeri AB HemNet Service HNS AB1) Nordic World AS SF Kino Stavanger/Sandnes AS Tidningarnas Telegrambyrå AB Tidsam AB Other Total 1)
Ownership, % Dec. 31, 2011 50.0 0.0 50.0 49.0 30.0 42.5
as shown in Note 1. Share of profit/loss before tax is reported on a separate line as part of operating profit and the results by associat ed company were as follows: Group 2011 12.1 4.9 –2.6 3.8 15.0 11.3 –2.9 41.6
2010 10.2 1.7 –1.1 6.0 12.6 7.2 3.4 40.0
The company was sold in 2011.
Note 11 Income from participation in subsidiaries SEK M Subsidiaries Dividends Group contribution, dividends Result from sale of shares Write-downs Group contribution, cover for losses Total
18
Parent Company 2011 5,615.3 492.7 –40.1 –5,366.8 –38.8 662.3
2010 628.1 508.6 –11.8 –223.4 –52.7 848.8
bonnier ab annual report
2011
Notes to the Financial Statements
Note 12 Income from other securities and receivables held as fixed assets SEK M Dividends Interest income from Group companies Other interest income Capital gain on sales Write-downs Total
Group 2011 1.9 5.3 1.7 3.5 –6.4 6.0
2010 1.3
Parent Company 2011 61.4
1.0 2.5 –0.4 4.4
2010 61.6
0.9 62.3
–2.1 59.5
Note 13 Other interest income and similar items and interest expense and similar items SEK M Other interest income and similar items Interest income from Group companies Other interest income Total Interest expense and similar items Interest expense owed to Group companies Other interest expense Exchange-rate differences Total
Group 2011
2010
Parent Company 2011
3.6 53.4 57.0
0.4 29.2 29.6
26.1 20.6 46.7
7.4 5.2 12.6
–13.2 –404.8
–2.6 –553.0
–418.0
–555.6
–136.5 –86.4 –129.3 –352.2
–126.1 –52.2 7.6 –170.7
2010
Note 14 Appropriations Parent Company 2011
SEK M Tax allocation reserve Accelerated depreciation Total
2010 –40.9 0.4 –40.5
Note 15 Tax on profit for the year SEK M Current tax expense Deferred tax income/expense Share of tax in associated companies Tax on profit for the year Tax effect of Group contributions reported directly against shareholders’ equity Taxes paid
Group 2011 –343.4 95.2 –15.6 –263.8
2010 –424.0 156.4 –16.1 –283.7
18.1
–28.8
–341.1
–527.1
Group 2011 5,046.5
2010 4,648.6
–41.6 –576.3 12.9
–30.3 –153.5 93.7
0.8 4,442.3
382.6 4,941.1
Parent Company 2011 2010 –3.6 –32.4 –0.3 3.1 –3.9
–29.3
–32.0
Note 16 Adjustments for items not included in cash flow, etc. SEK M Amortizations, depreciations and write-downs Anticipated dividends, Group contributions Share of profit/loss in associated companies Capital gains Accrued interest income and interest expense Unrealized exchange-rate differences Other Total
bonnier ab annual report
2011
Parent Company 2011 2010 5,368.8 227.6 –4,853.5 –367.5 40.1 45.4 143.0 9.8 753.6
11.8 34.5 –58.9 8.6 –143.9
19
Notes to the Financial Statements
Note 17 Intangible fixed assets Group 2011 8,628.3 1.6 2,649.4 856.9 488.6 12,624.8
SEK M Goodwill Publishing rights Film rights Advances to suppliers Other intangible fixed assets Total Major goodwill items: SEK M TV operations Bonnier Corporation Tidnings AB Marieberg Forlaget Benjamin ApS Adlibris AB Cappelen Damm Holding AS Sydsvenska Dagbladets AB Weldon Owen Publishing, Inc. Ullstein Buchverlage GmbH Idé-Nyt A/S Mediafy AB GT/Göteborgs-Tidningen AB Other companies1) Total 1)
Acquisition value 7,392.2 1,963.5 1,870.6 290.3 289.1 227.9 224.6 196.4 192.8 171.3 167.4 156.0 2,280.9 15,423.0
Group Planned residual value 5,702.3 1,439.6
2010 9,066.1 2.1 2,348.5 1,070.5 396.6 12,883.8
Outstanding number of years 16.9 15.2
138.9 174.8 193.3 27.7 83.5 27.8 64.5 159.1 9.7 607.1 8,628.3
7.8 9.0 16.8 2.5 4.3 1.5 7.8 9.5 0.9
Including goodwill items with acquisition value below SEK 100 M.
See also Note 28.
Note 18 Construction in progress and advance payments for tangible fixed assets SEK M Construction in progress Balance, Jan. 1 Costs accrued during the year Sales and disposals during the year Reallocations during the year Acquisitions and sales of companies Depreciation for the year Translation difference Total
20
Group 2011 58.1 408.7 –0.1 –26.9
2010 11.3 79.7 –21.6 –10.2
–3.8 436.0
–1.1 58.1
bonnier ab annual report
2011
Notes to the Financial Statements
Note 19 Participations in associated companies
Corp. Reg. No Indirect holdings in associated companies: Besöksupplevelser Sverige AB Bokrondellen HB Borås Tidning Tryckeri AB Börs-SM AB City Skåne AB Den Norske Bokdatabasen AS Elib AB Fem Förlag AB Filmkameratene AS GP Sydsvenskan Media AB Hela Skåne AB Kvällspressen Impact, AB Lägenhetsbyte Sverige AB Media Mätning i Skandinavien MMS AB Nordic World AS Oy Mediuutiset Ab Platco Oy Pramedi AB Pressens Morgontjänst AB Pressens Morgontjänst KB Scandinavian Media Alliance A/S SF Kino Stavanger/Sandnes AS Suomen Radioviestintä Oy Svenska Bio Lidingö, HB Svenska Mässor och Events AB Taskukirja Loisto Oy Tidningarnas Telegrambyrå AB TidningsRetur i Nyköping AB Tidningstryckarna/Vanda AB Tidsam AB Västerås Biografer, AB Svensk Filmindustri & Co HB Group total
556848-8174 969698-9996 556268-0578 556502-9088 556754-8515 990820023 556600-2126 556187-5054 937731647 556712-6197 556701-4922 556621-8276 556685-6018 556353-3032 988873160 1471935-8 1703676-3 556739-9497 556137-8638 916642-7139 13703108 882288072 1012135-9 916615-5698 556857-6333 0457897-7 556564-5487 556230-0102 556721-5545 556423-4788 902002-1664
Reg. office Stockholm Stockholm Borås Stockholm Malmö Oslo Stockholm Gothenburg Oslo Stockholm Malmö Stockholm Stockholm Stockholm Oslo Helsinki Helsinki Stockholm Stockholm Stockholm Copenhagen Sandnes Helsinki Lidingö Malmö Helsinki Stockholm Stockholm Stockholm Stockholm Stockholm
Total acquisition value2) Total change in shareholders’ equity due to the application of the equity method instead of the acquisition method 1) 2)
% of share capital
Number of participations/ shares
Reported value in SEK M1)
50,0 25.0 50.0 50.0 50.0 12.5 25.0 50.0 50.0 50.0 50.0 50,0 45.0 24.0 50.0 50.0 33.3 50.0 50.0 50.0 50.0 49.0 27.7 50.0 50,0 25.0 30.0 50,0 50.0 42.5 50.0
250 1 20,000 500 500 15,000 500 510 50 1,000 200 1,000 450 1,225 5,000 2,000 100 500 500 1 150 490,000 20,914 1 500 35 149,301 2,500 50,000 42,500 1
0.0 0.0 34.4 0.1 0.1 2.0 1.1 0.0 4.1 0.2 0.1 0.3 0.7 6.1 0.0 2.2 0.1 0.0 0.1 0.6 0.1 28.8 1.4 0.0 3.0 1.2 51.3 0.3 0.0 26.7 0.0 165.0
–55.1 109.9
Reported value refers to the Group. After write-downs, as circumstances dictate.
Associated companies reported for the first time in accordance with the equity method: SEK M Besöksupplevelser Sverige AB Svenska Mässor och Events AB Total 1)
Group Proportion of shareholders’ equity1) 0.0 3.0 3.0
Reported value 0.0 3.0 3.0
Difference 0.0 0.0 0.0
In the associated company.
bonnier ab annual report
2011
21
Notes to the Financial Statements
Note 20 Inventories, etc. SEK M Raw materials and consumables Semi-finished goods Finished goods Goods for resale Work in progress on contract Advance payments to suppliers Total
Group 2011 116.2 108.1 523.1 308.0 135.1 120.7 1,311.2
2010 126.6 90.6 544.4 317.0 188.8 103.6 1,371.0
Group 2011
2010
131.3
439.0
27.2 258.2 416.7
30.0 252.2 721.2
0.7
0.8
51.3 3,653.1 120.6 516.9 1,841.4 6,184.0
48.0 3,383.2 160.2 434.4 1,654.5 5,681.1
Note 21 Short-term receivables SEK M Interest-bearing receivables Receivables from Group companies Receivables from subsidiaries Receivables from associated companies Other receivables Total Noninterest-bearing receivables Receivables from Group companies Receivables from subsidiaries Receivables from associated companies Accounts receivable - trade Tax receivables Other receivables Prepaid expenses and accrued income (Note 22) Total
Parent Company 2011
2010
131.3 4,776.5
80.0
1.2 4,909.0
3.7 83.7
507.5
509.3
0.3
0.1 0.1
2.1 95.7 605.6
151.2 660.7
Note 22 Prepaid expenses and accrued income SEK M Noninterest-bearing receivables Accrued advertising revenues Accrued subscription revenues Accrued interest income Prepaid films Prepaid rents Prepaid marketing costs Prepaid editorial costs Exchange-rate differences in foward transactions Other items Total
22
Group 2011 81.5 240.1 65.6 274.6 105.7 225.8 32.6 74.1 741.4 1,841.4
2010 75.7 218.0 30.3 257.7 112.3 172.3 33.5 58.4 696.3 1,654.5
Parent Company 2011
2010
47.7
72.3
1.7
1.7
32.0 14.3 95.7
57.9 19.3 151.2
bonnier ab annual report
2011
Notes to the Financial Statements
Note 23 Provisions SEK M Interest-bearing provisions Provisions for PRI pensions Provisions for other pensions Reserves for restructuring costs Provisions for future purchase from minority owners Other provisions Total Noninterest-bearing provisions Provision for deferred tax Other provisions Total Negative goodwill Acquisition value, Jan. 1 Reclassifications Accumulated acquisition value, Dec. 31 Accumulated dissolution, Jan. 1 Accumulated dissolution, Dec. 31 Closing reported value
Group 2011
2010
1,143.8 355.5 18.8 155.5 3.7 1,677.3
1,125.0 352.6 31.3 202.6 3.4 1,714.9
340.3 37.4 377.7
365.3 21.9 387.2
40.0 40.0
42.3 –2.3 40.0
–40.0 –40.0
–40.0 –40.0
0.0
0.0
Parent Company 2011
2010
48.6 118.1
44.3 114.6
166.7
158.9
Dissolution for the year is reported in the income statement on the line Amortization/depreciation and write-downs of intangible and tangible fixed assets. Refer also to Note 33.
Note 24 Long-term liabilities SEK M Interest-bearing liabilities Overdraft facilities Other liabilities to credit institutions Total
Group 2011
5,329.2 5,329.2
Noninterest-bearing liabilities Other liabilities Total
2010
5,251.0 5,251.0
Parent Company 2011 631.5 1,923.6 2,555.1
2010
631.5 1,200.0 1,831.5
7.9 7.9
Note 25 Credit limits Group 2011 9,500 3,256
SEK M Total loan programs Of which, utilized amount
bonnier ab annual report
2011
2010 8,500 3,882
Parent Company 2011 2010 9,500 8,500
23
Notes to the Financial Statements
Note 26 Current liabilities SEK M Interest-bearing liabilities Liabilities to Group companies Liabilities to subsidiaries Liabilities to associated companies Reserves for restructuring costs Liabilities to credit institutions Total Noninterest-bearing liabilities Advances from subscribers Other advances from customers Accounts payable - trade Liabilities to Group companies Liabilities to associated companies Tax liabilities Other liabilities Accrued expenses and prepaid income (Note 27) Total
Group 2011
2010
99.8
331.0
56.0 237.0 867.8 1,260.6
8.8 164.1 912.0 1,415.9
1,208.8 334.8 2,555.6 72.0 190.3 733.4 2,866.7 7,961.6
1,272.9 288.7 2,240.2 147.5 28.0 251.6 601.5 2,877.9 7,708.3
Group 2011 515.1 268.4 244.5 124.2 58.4 212.9 77.3 250.8 1,115.1 2,866.7
2010 517.8 273.6 259.1 128.5 37.2 208.9 129.0 274.1 1,049.7 2,877.9
Parent Company 2011
2010
1,919.4
2,764.5
1,919.4
2,764.5
11.6 2,235.8
9.0 64.6
3.6 1.2 94.9 2,347.1
32.0 3.0 92.0 200.6
Parent Company 2011 5.3 4.5
2010 8.9 3.0
Note 27 Accrued expenses and prepaid income SEK M Liability for vacation payments Social security charges Accrued royalties Accrued marketing costs Accrued interest expense Personnel-related accrued costs Exchange-rate differences in forward transactions Program rights Other items Total
51.2 9.1
37.7 9.1
24.8 94.9
33.3 92.0
Note 28 Intangible fixed assets, Group SEK M Acquisition value, Jan. 1, 2011 Purchases/Altered purchase price Sales and disposals Acquisitions and sales of companies Reclassifications Translation difference Accumulated acquisition value, Dec. 31 Amortization, Jan. 1, 2011 Sales and disposals Acquisitions and sales of companies Amortization for the year Reclassifications Translation difference Accumulated amortization, Dec. 31
Goodwill 15,107.2 120.5 –128.5 307.3
Publishing rights 78.7 0.4
Film rights 12,090.4 3,796.4 –8,609.0 213.6 –5.0 7,486.4
16.5 15,423.0
–0.3 78.8
–5,967.8 93.8 –28.2 –808.0
–76.4
–9,741.7 8,611.3
–0.9
–3,706.5
–10.6 –6,720.8
0.3 –77.0
0.1 –4,836.8
Advances to suppliers 1,070.5
–213.6 856.9
Write-ups, Jan. 1, 2011 Accumulated write-ups, Dec. 31 Write-downs, Jan. 1, 2011 Sales and disposals Acquisitions and sales of companies Write-downs for the year Reclassifications Translation difference Accumulated write-downs, Dec. 31
–73.3
Other 1,077.1 213.7 –22.3 –17.6 20.3 4.7 1,275.9
Total 29,423.9 4,131.0 –8,759.8 289.7 20.3 15.9 25,121.0
–649.8 6.9 19.1 –131.1 –8.6 –3.7 –767.2
–16,435.7 8,712,0 –9.1 –4,646.5 –8.6 –13.9 –12,401.8
0.1 0.1
0.1 0.1
–0.2
–0.2
–30.8 2.5 1.4 –2.5 9.2
0.5 –73.9
–0.2
–0.2
–20.2
–104.5 2.5 0.3 –2.5 9.2 0.5 –94.5
Planned residual value, Dec. 31
8,628.3
1.6
2,649.4
856.9
488.6
12,624.8
Planned residual value, Dec. 31, 2010
9,066.1
2.1
2,348.5
1,070.5
396.6
12,883.8
–1.1
Write-downs for the period are reported in the income statement on the line Amortization/depreciation and write-downs of intangible and tangible fixed assets.
24
bonnier ab annual report
2011
Notes to the Financial Statements
Note 29 Tangible fixed assets, Group
SEK M Acquisition value, Jan. 1 Purchases Sales and disposals Acquisitions and sales of companies Reclassification Translation difference Accumulated acquisition value, Dec. 31
Buildings and land 2011 2010 449.6 1,592.1 0.4 156.0 –30.5 –2.5 –25.7 –1,292.3 –15.0 15.0 –0.6 –18.7 378.2 449.6
Plant and machinery 2011 2010 2,932.4 3,008.4 23.9 9.3 –317.4 –8.0 –0.1 –25.3 –2.5 –45.9 –0.3 –6.1 2,636.0 2,932.4
Equipment, tools, fixtures and fittings 2011 2010 2,748.2 3,078.8 212.9 206.0 –260.4 –312.4 –38.1 –156.3 –130.8 61.4 –2.8 –129.3 2,529.0 2,748.2
Depreciation, Jan. 1 Sales and disposals Acquisitions and sales of companies Depreciation for the year Reclassification Translation difference Accumulated depreciation, Dec. 31
–101.1 9.7 12.1 –9.0 –0.1 0.2 –88.2
–410.7 0.2 331.9 –26.4 0.1 3.8 –101.1
–1,843.4 320.9 0.1 –156.7 –0.1 0.2 –1,679.0
–1,782.0 5.7 25.0 –143.8 46.9 4.8 –1,843.4
–2,045.9 241.5 25.7 –225.4 148.7 1.9 –1,853.5
–2,254.3 300.9 87.4 –231.4 –46.5 98.0 –2,045.9
Write-downs, Jan. 1 Purchases Sales and disposals Acquisitions and sales of companies Write-downs for the year Reclassification Translation difference Accumulated write-downs, Dec. 31
–12.2
–632.4
–553.8
–29.1 7.4 9.1
–100.0
0.5 1.9
–554.6 1.0 0.1
618.6 4.4 –4.4
–0.4 0.1
0.1 –9.7
1.6 –12.2
–553.8
–553.8
–7.3 4.4 0.1 –15.4
3.6 70.0 –3.9 –0.5 1.7 –29.1
Planned residual value, Dec. 31
280.3
336.3
403.2
535.2
660.1
673.2
Write-downs for the year are reported in the income statement on the line Amortization/depreciation and write-downs of intangible and tangible fixed assets.
Note 30 Tangible fixed assets, Parent Company
SEK M Acquisition value, Jan. 1 Purchases Sales and disposals Accumulated acquisition value, Dec. 31 Depreciation, Jan. 1 Sales and disposals Depreciation for the year Accumulated depreciation, Dec. 31 Planned residual value, Dec. 31 Accelerated depreciation, Jan. 1 Accelerated depreciation for the year Accumulated accelerated depreciation, Dec. 31
bonnier ab annual report
2011
Equipment, tools, fixtures and fittings 2011 12.9 1.0 –2.2 11.7
2010 14.2 0.9 –2.2 12.9
–7.2 2.1 –2.0 –7.1
–7.3 2.2 –2.1 –7.2
4.6
5.7
–0.7
–1.1 0.4 –0.7
–0.7
25
Notes to the Financial Statements
Note 31 Financial fixed assets, Group Participations in associated companies 158.1 3.6 16.9 –16.0 9.3 7.2
SEK M Acquisition value, Jan. 1, 2011 Purchases Change in share of equity Sales and disposals Acquisitions and sales of companies Reclassification Translation difference Accumulated acquisition value, Dec. 31 Write-ups, Jan. 1, 2011 Translation difference Accumulated write-ups, Dec. 31
Other securities held as fixed assets 90.1 7.2
Interest-bearing receivables from associated companies 5.8
Other interest-bearing long-term receivables 53.9 35.9
Deferred tax receivables 1,103.0 70.1
–4.3 0.1
63.2
5.8
–1.6 84.0
14.5 1,250.8
–3.8 2.4 –2.0 –0.5
–5.4
–21.3
–0.4
–6.1
–3.9
–5.8
–27.4
–45.4 1.6 –0.5
179.1
53.0
5.9 –5.9 0.0
0.4 0.4
Write-downs, Jan. 1, 2011 Sales and disposals Write-downs for the year Reclassification Translation difference Accumulated write-downs, Dec. 31
–11.5
Planned residual value, Dec. 31
165.0
49.5
0.0
56.6
1,250.8
Planned residual value, Dec. 31, 2010
152.5
86.7
0.4
32.6
1,103.0
–1.6 –0.4 –0.6 –14.1
Write-downs for the year are reported in the income statement on the lines Income from other securities and receivables held as fixed assets.
Note 32 Financial fixed assets, Parent Company Participations in subsidiaries 26,317.8 131.2 2,234.4 5.0
SEK M Acquisition value, Jan. 1, 2011 Acquisitions/new loans Shareholder contributions Reclassification Translation difference Sales/amortization Accumulated acquisition value, Dec. 31 Write-downs, Jan. 1, 2011 Reclassification Sales and disposals Write-downs for the year Accumulated write-downs, Dec. 31
Participations in associated companies 5.0
Participations in other companies 2.0
Interest-bearing receivables from Group companies 2,534.0 606.5
Deferred tax receivables 33.9
–5.0
–73.7 28,614.7
0.0
–10,223.2 –4.3
–4.3 4.3
–2.0 0.0
–43.3 –279.6 2,817.6
–0.3 33.6
–2.0 2,0
–5,366.8 –15,594.3
0.0
0.0
Planned residual value, Dec. 31
13,020.4
0.0
0.0
2,817.6
33.6
Planned residual value, Dec. 31, 2010
16,094.6
0.7
0.0
2,534.0
33.9
Write-downs for the year are reported in the income statement on the lines Income from participation in subsidiaries and Income from other securities and receivables held as fixed assets.
Note 33 Provisions
SEK M Value, Jan.1, 2011 Provisions/reductions Utilized Reclassification Other incl. acquisitions/sales of companies Translation difference Value, Dec. 31
PRI pensions 1,125.0 54.8 –36.0
1,143.8
Other pensions 352.6 36.4 –32.0 –0.3 –0.6 –0.6 355.5
Group Provision for future pur Restructuring chase from costs min. owners 31.3 202.6 –16.8 –12.5 –23.9
18.8
–6.4 155.5
Parent Company
Deferred tax 365.3 –22.0
–2.6 –0.4 340.3
Other 25.3 14.2 –2.1 0.8 2.9 41.1
PRI pensions 44.3
Other pensions 114.6
–2.2
–7.3
6.5
10.8
48.6
118.1
The closing balance for provisions for restructuring costs pertains to Books, Broadcasting & Evening Paper, Morning Paper and Other business areas. Provisions will be utilized gradually during the period 2012–2013. Provision for future purchase from minority owners pertains to shares in companies where Bonnier AB Group has conducted option agreements to buy the shares from the minority shareholders.
26
bonnier ab annual report
2011
Notes to the Financial Statements
Note 34 Participations in subsidiaries
1. 2.
3. 4.
5. 6.
7. 8.
B Media Invest AB Bink AB Open AdExchange Sverige AB Tailsweep AB Bonnier Annons AB Bonnier Books AB Adlibris AB Adlibris ApS Adlibris Finland Oy Företagslitteratur Sverige AB Bonnier Publishing Ltd. Bonnier Media Ltd. Editions Piccolia, S.A. Hot Key Books Ltd. Smellessence Ltd. The Five Mile Press Pty. Ltd. The Templar Company Ltd. Weldon Owen Ltd. Bonnierförlagen AB Albert Bonniers Förlag AB Bokförlaget Bonnier Fakta AB Bokförlaget Forum AB Bokförlaget Maxström AB Bonnier Audio AB Kartago Mediahus AB Månadens Bok, HB Pocketgrossisten Bonnierförlagen AB Samdistribution Bonnierförlagen AB Wahlström & Widstrand, AB Jultidningsförlaget Semic AB Kustannusosakeyhtiö Tammi Bonnier Kirjat Oy Werner Söderström Oy Readme.fi Oy Pandaförsäljningen AB SEMIC International AB Bonnier Brands AB Bonnier Business Press AB Bonnier Business (Polska) Sp. z o.o. Informedia Polska Sp. z o.o. Puls Biznesu Net S.A. Bonnier Business Media OÜ Bonnier Business Press, ZAO Bonnier Business Press International AB Dagens Medicin Sverige AB Dagens Medisin AS Editora Paulista de Comunicações Científicas e Técnicas Ltda. Mediabas AB Medicine Today Poland Sp. z o.o. Norsk Helseinformatikk AS Bonnier Holding Ukraine LLC Rynok Media LLC ˇ Casnik Finance, d.o.o. Dagens Industri AB Dagens Industri Annons AB di.se online AB DiTV AB Verslo Žinios, UAB Äripäev, AS Bonnier Business Publishing AB Bonnier Deutschland GmbH Bonnier Media Deutschland GmbH arsEdition GmbH Bonnier 1. Beteiligungs- und Verwaltungs GmbH
bonnier ab annual report
2011
Corp. Reg. No. 556748-2632 556166-2023 556873-9220 556712-7146 556458-9124 556233-3111 556261-3512 29619549 0195663-7 556641-3281 01273558 05311887 380771733 07735953 07724898 005966245 01549157 07891331 556023-8445 556203-3752 556145-9636 556014-8727 556526-8918 556074-9318 556512-5381 902003-8106 556560-4583 556042-9887 556043-7724 556166-9572 0599340-0 2320862-1 1522079-4 2160350-5 556369-7720 556046-1336 556802-5646 556490-1832 0000024847 0000223380 0000062826 11460687 N 76340 556555-7187 556560-0037 979914253 CNPJ 08.528.247 556617-5518 0000099422 976516397 33629876 33784724 13140200 556221-8494 556509-5188 556509-7267 556110-9140 110682810 10145981 556468-8892 HRB 156443 HRB 136800 HRB 145362 HRB 103563
Reg. office Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Copenhagen Helsinki Stockholm Chichester Chichester St-Michel-sur-Orge Chichester Chichester Melbourne Dorking Chichester Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Sundbyberg Helsinki Helsinki Helsinki Helsinki Karlstad Stockholm Stockholm Stockholm Warsaw Warsaw Warsaw Tallinn St. Petersburg Stockholm Stockholm Oslo São Paulo Stockholm Warsaw Trondheim Kiev Kiev Ljubljana Stockholm Stockholm Stockholm Stockholm Vilnius Tallinn Stockholm Munich Munich Munich Hamburg
% of share capital 100.0 100.0 80.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 95.0 83.0 100.0 65.0 100.0 100.0 100.0 100.0 100.0 91.0 70.0 100.0 70.0 100,0 100.0 100.0 100.0 100.0 100.0 100.0 95.0 100.0 100.0 100,0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.9 100.0 100.0 63.2 100.0 100.0 100.0 100.0 100.0 100.0 100.0 72.8 100.0 100.0 100.0 100.0 100.0 100.0
% of votes1)
Number of participations/shares 1,000 20,000
Reported value SEK M 34.6 2.4
1,000 2,500
0.1 1,604.5
1,000 200,000
0.1 1,978.5
1,000 30,000,000
0.1 1,014.4
2)
2)
2)
3)
27
Notes to the Financial Statements
NotE 34 cont.
9. 10. 11.
12.
13. 14.
15.
28
BuchVertrieb Blank GmbH Carlsen Verlag GmbH Nelson Verlag GmbH Hörbuch Hamburg HHV GmbH Libresco GmbH Pendo Beteiligungsgesellschaft mbH Piper Verlag GmbH R. Piper & Co Verlag GmbH Thienemann Verlag GmbH Ullstein Buchverlage GmbH K. Verlags- und Vertriebsgesellschaft mbH Bonnier Digital Consumer Services AB Bonnier Digital Services AB Bonnier Entertainment AB Bonnier Gaming AB Bonnier Lottery AB Mix Megapol.com AB Soft Capital Investment AB Soft Capital Holding Ltd. Bonnier Gaming Malta Ltd. Internet and Media Consulting Ltd. Bonnier MultiMedia AB Homeenter AB Discshop Svenska Näthandel AB Discshop Alandia Ab Homeenter Alandia Ab Homeenter Polska Sp. z o.o. SF Bio AB Biograf Sture AB SF Anytime AB SF Media AB Svensk Filmindustri Kino AS Svensk Filmindustri, Kino Skien AS Svensk Filmindustri, AB Filmbolaget Treklövern HB FS Film Oy InfoCom Bonnier ICB AB Juonifilmi Oy SF Norge AS Syncron Film AS Sonet Film AB Happy Life Animation GmbH Svensk Filmproduktion 2 KB Svensk Filmindustri International AB Bonnier Euro Holding AB TV4 AB C More Group AB C More Entertainment AB C More Entertainment Oy Enterprize UNLMT AB TV4 Expressen Mobilab AB TV4 Retail Television AB TV4 Sport AB TV4 Stockholm AB TV4 Sverige AB TV4 Vision AB Bonnier Financial Control AB Bonnier Finans, AB Bonnier Belgium N.V. Bonnier Financial Services AB Bonnier Luxembourg S.à r.l. Bonnier Treasury S.A. Bonnier World S.à r.l. Partitiv AB Bonnier Holding Norway AS
Corp. Reg. No. HRB 92253 HRB 43092 HRB 113971 HRB 98748 HRB 723887 HRB 150968 HRB 71118 020.4.900.429-9 HRB 3287 HRB 91717 HRB 4862 556796-5487 556496-0630 556047-0667 556096-9411 556525-5535 556472-0554 556682-8413 C 45931 C 38582 1451981 556031-8775 556293-3381 556604-9952 1932506-7 1655221-3 0000103243 556035-1651 556503-3650 556748-2616 556379-4014 962277055 982856493 556003-5213 916404-8804 1571957-9 556187-4115 1914756-3 947714732 964346453 556478-1705 HRB 82146 916618-2924 556540-3937 556725-8644 556242-7152 556630-5180 556053-7309 1530976-4 556728-0085 556630-6808 556646-7113 556246-8164 556423-2626 556289-4237 556417-6898 556855-1211 556026-9549 0831519731 556067-9887 B 57013 B 161605 B 164843 556789-5403 990212880
Reg. office Vierkirchen Hamburg Hamburg Hamburg Stuttgart Munich Munich Zurich Stuttgart Berlin Freiburg Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Valletta Valletta Br. Virgin Islands Stockholm Burlöv Stockholm Mariehamn Mariehamn Warsaw Stockholm Stockholm Stockholm Stockholm Tønsberg Skien Stockholm Stockholm Helsinki Stockholm Helsinki Oslo Oslo Stockholm Berlin Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Helsinki Stockholm Stockholm Stockholm Stockholm Stockholm Malmö Stockholm Stockholm Stockholm Brussels Stockholm Luxembourg Luxembourg Luxembourg Stockholm Oslo
% of share capital 100.0 100.0 80.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 91.0 100.0 100.0 100.0 66.0 100.0 67.0 100.0 99.9 100.0 100.0 100.0 100.0 100.0 69.0 100.0 100.0 100.0 65.0 100.0 100.0 90.0 100.0 100.0 100.0 100.0 100.0 100.0 100,0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
% of votes1)
Number of participations/shares
Reported value SEK M
1,000 16,000 150,000
0.1 0.5 1,151.3
1,000
0.1
500 1,000,000
0.0 308.8
1,100
11.7
bonnier ab annual report
2011
Notes to the Financial Statements
NotE 34 cont.
16. 17.
18.
19. 20.
Bonnier Blader AS Capris AS Bonnier International Magazines AB Bonnier Media B.V. Bonnier Magazine Group A/S Bonnier Magazine Data A/S Bonnier Publications A/S Benjamin Media A/S Benjamin Publications AS Bonnier A/S Bonnier Business Press A/S Dagbladet Børsen A/S Dagens Medicin A/S SF Film A/S SF Film Productions ApS Bonnier Publications AB Bonnier Publications Försäljning AB Kvittoexponering AB Suoramedia Oy Vi i villa AS Bonnier Publications International AS Bonnier Media AS Bonnier Publications Ltd. Bonnier Publications, OOO Bonnier Publications Oy Børsen Forum A/S Bonnier Business Forum AS Bonnier Business Forum Oy Idé-Nyt A/S PSE 38 nr 2090, A/S Bonnier Media Holding AB Spring Media Inc. Bonnier States AB Bonnier US Holding Inc. Bonnier Corporation Bonnier Active Media, Inc. Transworld Magazine Corporation Warren Miller Entertainment Bonnier Working Mother Media, Inc. The Parenting Group, Inc. World Publications Holding, LLC Virgin Islands Publications, LLC World Entertainment Services, LLC World Publications, LLC World Publications II, LLC World Publications III, LLC World Sports and Marketing, LLC Bonnier Vertical Media, Inc. Magplus Inc. Toca Boca Inc. Byeway Books Inc. Weldon Owen Publishing, Inc. Weldon Owen Education, Inc. Weldon Owen Education Ltd. Weldon Owen, Inc. Weldon Owen Magazine, Inc. Weldon Owen Proprietary, Ltd. Weldon Russel Proprietary, Ltd. Bonnier Solutions AB Bonnier Tidskrifter AB Allt om Mat på Nätet AB AlltomBarn i Stockholm AB B2B Sales AB Bonnier Antik & Livsstil AB Bonnier Zoo Förlag AB
bonnier ab annual report
2011
Corp. Reg. No. 984424221 990335214 556072-0293 54369810 53376614 26340136 12376405 25796829 986321829 70978016 24205258 76156328 20052678 21388939 26390168 556105-0351 556548-7096 556871-8794 0741464-4 983435564 977041066 987904151 212894 1087746660540 0996378-6 19409775 990238367 1878245-0 11450970 25044649 556262-5052 20-4505209 556707-0007 98-0494191 98-0522510 13-2620517 13-3936719 22-3828960 80-0256860 13-4034430 59-3754944 30-0093378 59-3574946 30-0093378 59-3670973 59-3670971 59-3754949 45-2713096 45-2494282 45-3785359 161671300 52-2098266 94-3394914 79-229-571 94-3097435 94-3342617 003733720 003603343 556748-2624 556012-7713 556006-0658 556067-9697 556662-4713 556556-2658 556042-5877
Reg. office Oslo Oslo Stockholm Utrecht Copenhagen Copenhagen Copenhagen Copenhagen Oslo Copenhagen Copenhagen Copenhagen Copenhagen Copenhagen Copenhagen Lidingö Lidingö Lidingö Helsinki Oslo Oslo Oslo Limassol Moscow Helsinki Copenhagen Oslo Helsinki Herlev Copenhagen Stockholm Delaware Stockholm Delaware Delaware New York New York Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Kansas Delaware Delaware Auckland Delaware Delaware Sydney Sydney Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm
% of share capital 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 75.0 100.0 100.0 100.0 100.0 51.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 80.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 70.0 100.0
% of votes1)
Number of participations/shares
Reported value SEK M
1,000
0.9
157
1,663.4
10,000
2.5
1,000 28,000
0.1 669.6
2)
2)
29
Notes to the Financial Statements
NotE 34 cont.
21. 22. 23. 24. 25. 26. 27. 28.
29.
30. 31.
32.
Mediafy AB Mediafy Magazines AB Mediafy Magazines AS Mediafy Magazines Oy Mediafy Marketing Group AB Netsu AB Privata Affärer Förlag AB Resumé Förlag AB Spoon Experience AB Spoon Publishing AB Spoon On Demand AB Stockholm City i Sverige AB Stockholm City i Sverige Försäljning AB vetgirig internet quiz Stockholm AB Bonnier Tyskland Holding AB Fordonstorget AB Generate Sweden AB Giftsvampen i Stockholm AB Mag+ AB Marieberg International AB Newsmill AB Nordic Broadcasting AB Nyhetsbolaget Sverige AB Scandinavian Studios AB Nordic Broadcasting Oy MTV Oy Suomen Uutisradio Ab, Oy NB Finance Oy Sural AB Bildhuset Images i Stockholm AB Tidnings AB Marieberg Bold Printing Group AB DNEX Tryckeriet AB Sydsvenskan Tryck AB Bonnier Dagstidningar AB Bonnier Office AB Citypaketet Sweden AB Citypaketet KB Dagens Nyheter, AB Bokförlaget DN, AB Dagens Nyheter Annonsförsäljning, AB Dagens Nyheter Reservbolaget AB DN På Stan, AB Kvällstidningen Expressen, AB GT/Göteborgs-Tidningen AB Kvällsposten AB Spörten, AB Marieberg Media AB Pressens Bild Images AB Sydsvenska Dagbladets AB City Malmö Lund AB Kompetens i Skåne AB Sydsvenska Dagbladets Försäljnings AB Toca Boca AB Total Reported value 2010
Corp. Reg. No. 556619-8205 556713-7053 992305134 2317923-4 556667-7471 556692-8049 556529-6851 556150-5180 556637-5597 556561-8989 556444-7489 556320-6381 556631-7433 556733-6713 556548-5207 556655-4555 556657-0049 556064-0723 556821-6450 556759-0376 556754-8440 556848-7838 556273-6032 556854-2855 1882626-5 1093944-1 0577699-1 2368678-9 556158-9531 556102-7169 556002-8796 556312-2554 556246-8180 556256-4038 556414-2155 556162-7745 556621-8300 969711-9817 556246-8172 556334-7961 556320-6704 556750-4740 556246-8156 556025-4525 556284-8720 556051-3599 556206-2868 556334-7953 556005-5104 556002-7608 556743-5580 556754-8796 556335-2722 556870-3721
Reg. office Stockholm Stockholm Oslo Helsinki Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Huddinge Stockholm Gothenburg Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Helsinki Helsinki Hyvinkää Helsinki Stockholm Stockholm Stockholm Stockholm Stockholm Malmö Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Stockholm Gothenburg Malmö Stockholm Stockholm Stockholm Malmö Malmö Malmö Malmö Stockholm
% of share capital 60.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 68.0 100.0 100.0 74.0 100.0 100.0 100.0 100.0 100.0 100.0 97.4 100.0 100.0 66.7 66.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 97.6 100.0 100.0 100.0 100.0
% of votes1)
Number of participations/shares
Reported value SEK M
250,000 1,200 1,000 200,000 1,000 1,000 2.500 500
30.1 0.1 15.5 24.5 25.0 0.1 4.6 6.7
800,002
1,527.5
1,000
8.5
29,842,230
2,934.0
1,000
0.1 13,020.4
2)
4) 4)
16,094.6
In the event of deviation from equity share. The Bonnier AB Group has conducted an options agreement pertaining the remaining shares, which means that the Bonnier AB Group in practice carries the financial benefits and risks for 100 percent of the shares. Accordingly, the holding is reported in the consolidated financial statements without minority interest. 3) Of which 30 percent is owned by Bonnier Business Press AB. 4) Owned by 33.3 percent by AB Dagens Nyheter and by 33.3 percent by Sydsvenska Dagbladets AB. 1)
2)
30
bonnier ab annual report
2011
Notes to the Financial Statements
NotE 35 Joint ventures Corp. Reg. No. 991172041 948061937 556481-8259 981037316 994278258 984058128 997274148 987204958 914752876 556812-6279
Indirect holdings Cappelen Damm Holding AS Cappelen Damm AS Askeladden Förlag AB Ex Libris Forlag AS Sentraldistribusjon AS Cappelen Damm Salg AS Flamme Forlag AS Larsforlaget AS Tanum AS Templ AB
Reg. office Oslo Oslo Gothenburg Oslo Oslo Oslo Oslo Oslo Oslo Gothenburg
% of share capital 50.0 100.0 100.0 100.0 100.0 100.0 80.0 66.0 100.0 50,0
The above companies are joint ventures where Bonnier AB is joint owner under the collaboration agreement on determining influence. Cappelen Damm Holding AS runs publishing operations in Norway. The joint-owned companies are reported in the Bonnier AB Group in accordance with the proportional method. The Group’s share of the average number of employees, salaries etc. in the joint venture companies appears from Note 4 and Note 5. The following amount constitutes the Group’s stake in the joint venture companies assets and liabilities and is included in the Group’s balance sheet.
Group SEK M Fixed assets Current assets Total assets
2011 314.0 354.6 668.6
2010 322.6 324.2 646.8
Shareholders’ equity Provisions Liabilities Total shareholders’ equity and liabilities
133.8 45.4 489.4 668.6
106.5 51.8 488.5 646.8
The Bonnier AB Group has no contingent liabilities for the joint venture companies. On the other hand, the owned share of the joint venture companies’ contingent liabilities and assets pledged is included. The following amount constitutes the Group’s share in the joint venture companies income and expense and is included in the Group’s income statement. Group SEK M Net sales Operating costs Operating profit/loss Income from financial investments Profit after financial items Tax Profit/loss for the year
Note 36 Pledged assets SEK M Pertaining to pensions and similar commitments Other pledged assets
2011 835.5 –781.8 53.7 –14.6 39.1 –11.7 27.4
2010 863.8 –810.5 53.3 –16.9 36.4 –2.7 33.7
Group 2011
2010 46.2
Pertaining to long-term liabilities to financial institutions Other pledged assets
5.7
4.8
Total
5.7
51.0
Note 37 Contingent liabilities SEK M Contingent liabilities on behalf of subsidiaries Contingent liabilities on behalf of associated companies Partnership companies Other contingent liabilities Total
Group 2011
2010
116.3 2.5 172.9 291.7
108.3 2.1 143.0 253.4
Parent Company 2011 2010 4,871.3 10,098.2
30.2 4,901.5
30.2 10,128.4
The Parent Company’s contingent liabilities on behalf of subsidiaries pertain to liability for the subsidiaries’ overdraft facilities. In addition, the Parent Company issued capital cover guarantees for certain of its subsidiaries In the Other contingent liabilities category, the major items are contingent liabilities for film and program rights, contingent liabilities to FPG (Försäkringsbolaget Pensionsgaranti) pertaining to collateral for pension commitments and contingent liabilities for certain disputes.
bonnier ab annual report
2011
31
Notes to the Financial Statements
Note 38 Definitions of key ratios EBITA (Earnings Before Interest, Tax and Amortization) Operating profit before capital gains/losses, before share of profit/ loss in associated companies and before goodwill and other writedowns and depreciation related to acquisitions. Operating EBITA Operating profit before capital gains/losses, before share of profit/ loss in associated companies and before goodwill and other writedowns and depreciation related to acquisitions and before restructuring costs and other items affecting comparability. Operating capital Total capital employed, less noninterest-bearing provisions and liabilities, excluding accrued interest expense, and less interestbearing assets and accrued interest income.
Note 39 Information about Bonnier AB and its Parent Company
Bonnier AB, corporate registration no. 556508-3663, is a wholly owned subsidiary of Bonnier Holding AB, 556576-7463, a sub sidiary of Albert Bonnier AB. The companies’ registered offices are located in Stockholm, Sweden. Bonnier AB is located on Kungsgatan 49 and its postal address is SE-113 90 Stockholm. Bonnier Holding AB and Albert Bonnier AB are located on Torsgatan 21 with postal address SE-113 90 Stockholm. Bonnier AB conducts operations in the media sphere via subsidiaries. The Parent Company of the largest and smallest group in which Bonnier AB is a subsidiary and in which consolidated accounts are prepared is Albert Bonnier AB, 556520-0341, Stockholm.
Net debt/equity ratio (gearing ratio) Interest-bearing provisions and liabilities, including accrued inter est expense, and less interest-bearing assets and accrued interest income, divided by shareholders’ equity and minority interests. Return on operating capital Operating profit as a percentage of the average total assets, less noninterest-bearing provisions and liabilities excluding accrued interest expense, and less interest-bearing assets and accrued interest income. Return on equity Profit before minority participation as a percentage of average shareholders’ equity and minority interests. Operating margin Operating profit as a percentage of net sales. Equity/assets ratio Shareholders’ equity and minority interests divided by total assets.
32
bonnier ab annual report
2011
The income statements and balance sheets will be submitted to the Annual Meeting on May 2, 2012, for adoption.
Stockholm, March 30, 2012
Börje Andersson
Carl-Johan Bonnier Chairman
Per-Olov Atle
Hans-Jacob Bonnier
Pontus Bonnier First Vice Chairman
Jeanette Bonnier
Bengt Braun Second Vice Chairman
Christian Caspar
Claes Hallin
Arne Karlsson
Pernilla Ström
Jonas Bonnier President
Lars Carlberg
Our audit report was issued on April 13, 2012 Öhrlings PricewaterhouseCoopers AB
Bertil Johanson Authorized Public Accountant
bonnier ab annual report
2011
33
Auditor’s Report To the annual meeting of the shareholders of Bonnier AB, corporate identity number 556508-3663
We have audited the annual accounts and consolidated accounts of Bonnier AB for the year 2011. The annual accounts and consolidat ed accounts of the company are included in the printed version of this document on pages 3–33.
in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the annual meeting of shareholders adopt the income statement and balance sheet for the parent company and the group.
Responsibilities of the Board of Directors and the Managing Director for the annual accounts and consolidated accounts
Report on other legal and regulatory requirements
Report on the annual accounts and consolidated accounts
The Board of Directors and the Managing Director are responsible for the preparation and fair presentation of these annual accounts and consolidated accounts in accordance with the Annual Accounts Act, and for such internal control as the Board of Directors and the Managing Director determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error.
In addition to our audit of the annual accounts and consolidated accounts, we have examined the proposed appropriations of the company’s profit or loss and the administration of the Board of Directors and the Managing Director of Bonnier AB for the year 2011.
Auditor’s responsibility
The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss, and the Board of Directors and the Managing Director are responsible for administration under the Companies Act.
Responsibilities of the Board of Directors and the Managing Director
Our responsibility is to express an opinion on these annual accounts and consolidated accounts based on our audit. We conducted our audit in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the annual accounts and consolidated accounts are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accounts and consolidated accounts. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the annual accounts and consolidated accounts in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors and the Managing Director, as well as evaluating the overall presentation of the annual accounts and consolidated accounts. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Our responsibility is to express an opinion with reasonable assur ance on the proposed appropriations of the company’s profit or loss and on the administration based on our audit. We conducted the audit in accordance with generally accepted auditing standards in Sweden. As a basis for our opinion on the Board of Directors’ proposed appropriations of the company’s profit or loss, we examined the Board of Directors’ reasoned statement and a selection of supporting evidence in order to be able to assess whether the proposal is in accordance with the Companies Act. As a basis for our opinion concerning discharge from liability, in addition to our audit of the annual accounts and consolidated accounts, we examined significant decisions, actions taken and circumstances of the company in order to determine whether any member of the Board of Directors or the Managing Director is liable to the company. We also examined whether any member of the Board of Directors or the Managing Director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinions
Opinions
In our opinion, the annual accounts and consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the parent company and the group as of 31 December 2011 and of their financial performance and cash flows for the year then ended
We recommend to the annual meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.
Auditor’s responsibility
Stockholm, April 13, 2012 Öhrlings PricewaterhouseCoopers AB
Bertil Johanson Authorized Public Accountant
34
bonnier ab annual report
2011
Multi-year Summary From the income statement SEK M Net sales Growth EBITA EBITA margin Operating profit Operating margin Profit/loss after financial items Profit/loss for the year
2011 29,819 0.0% 1,263 4.2% 1,019 3.4% 664 463
2010 29,824 –0.9% 2,111 7.1% 1,522 5.1% 1,000 711
2009 30,080 1.9% 1,185 3.9% 212 0.7% –228 –381
2008 29,518 1.1% 2,414 8.2% 1,816 6.2% 1,533 1,052
2007 29,207 44.3% 2,845 9.7% 2,710 9.3% 2,425 1,542
2006 20,247 1.0% 1,160 5.7% 1,424 7.0% 1,439 948
2005 20,051 2.5% 1,048 5.2% 2,658 13.3% 2,585 2,167
From the balance sheet SEK M Operating capital Return on operating capital Net debt (– = net cash) Shareholders’ equity and minority interests Total assets Net debt1)/shareholders’ equity, ratio
2011 15,018 6.8% 7,437 7,581 24,188 0.98
2010 14,784 9.8% 7,207 7,577 24,062 0.95
2009 15,632 1.3% 8,497 7,135 25,129 1.19
2008 16,852 13.1% 8,690 8,162 27,078 1.06
2007 13,535 23.1% 6,691 6,844 22,056 0.98
2006 3,818 22.3% –1,680 5,498 13,882 0.14
2005 4,484 40.7% –795 5,279 13,794 0.14
2011 –30
2010 496
2009 162
2008 1,463
2007 922
2006 400
2005 803
264 234 –230
907 1,403 1,290
310 472 193
–2,860 –1,397 –1,999
–8,900 –7,978 –8,371
999 1,399 885
3,077 3,880 3,571
1)
2005 and 2006 pro forma incl. 50 percent of Nordic Broadcasting Oy’s net debt.
From change in net debt SEK M Cash flow after operating investments Net acquisitions and divestments of operations, shares and participations Cash flow after acquisitions and divestments Change in net debt (– = increased debt)
From business area financial reports SEK M Net sales Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Total
2011
2010
2009
2008
2007
2006
2005
6,267 5,352 9,436 3,810 1,877 3,403 –326 29,819
6,265 5,658 9,225 3,828 1,758 3 405 –315 29,824
6,710 5,671 8,737 4,203 1,866 3,196 –303 30,080
5,917 6,202 7,624 3,969 2,495 3,678 –367 29,518
6,314 6,031 6,979 4,019 2,525 3,787 –448 29,207
5,489 3,971 1,453 3,595 2,187 3,627 –75 20,247
5,238 3,641 1,377 3,567 1,876 3,445 907 20,051
EBITA Bonnier Books Bonnier Magazines Bonnier Broadcasting & Evening Paper Bonnier Entertainment Bonnier Business Press Bonnier Morning Paper Other Total
648 102 800 211 248 –6 –740 1,263
720 155 1,260 280 210 39 –553 2,111
710 –13 991 255 62 –375 –445 1,185
568 466 1,374 251 194 –161 –278 2,414
678 699 1,159 252 337 38 –318 2,845
511 497 127 136 195 –81 –225 1,160
522 458 84 123 189 –153 –175 1,048
bonnier ab annual report
2011
35
Bonnier AB SE-113 90 Stockholm Sweden +46 8 736 40 00 bonnier.com
