Annual Review 2012

Different Markets, Different Developments ONE OF THE GREATEST challenges of 2012 had to do with communication. All over the western world, people discussed the “media crisis” last year. That referred to print media in general, to newspapers and magazines and in particular to the decline in advertising. This was relevant for us as well. Print advertising was down 10 to 20 percent in 2012. And at the same time, our newspapers and magazines had, in terms of profits, a stronger year in 2012 than in 2011.

In other words: Yes, there was a crisis. And no, that crisis was not a problem for Bonnier in 2012. Because we saw it coming. We knew about it. We were prepared for it. The reason behind the strong economic performance for print in 2012 had to do with decisions made in 2011. We were not surprised, and we know that the hard times we saw last year will continue for as long as the digital shift is going on. The hard times and the poor financial results in 2012 had to do with the kinds of media that were not included in the “media crisis” – books and broadcasting. Although that is not entirely true either. Our biggest TV operations, TV4 in Sweden, had a strong year with all-time high revenues. The problem was the Finnish TV market and the Swedish book market. (In Germany and Norway we had yet another successful year with our book publishing companies, and in particular Ullstein in Berlin showed an exceptional performance). The softness of the Finnish advertising market is continuing into 2013, but Bonnier’s underlying faith in MTV Media is as strong as ever. ALL OF THE ABOVE IS what happens when you are running a media conglomerate. Each media form has its structural development, each territory its own economic cycle. Which means that the communication challenge is to try to make sense out of almost 200 specific circumstances/ developments. Last year, unfortunately, some of the big companies had a hard time. But that shouldn’t stand in the way of the fact that in 2012, SF Bio, Bonnier Business Press and Børsen had their best years ever.

Jonas Bonnier President & CEO, Bonnier AB

2  BONNIER ANNUAL REVIEW 2012

ILLUSTRATION: ELISABETH MOCH

BONNIER ANNUAL REVIEW 2012  3

BONNIER. Continuously

reinventing media. BONNIER IS A CULTURALLY progressive, humanistic company with a belief in the power of the individual and freedom of speech. This forms the basis for our future media development, as we face the paradigm shift from an analog to a digital world. The company combines a true fascination for media products with a keen

business mindset, promoting highquality media products while collaborating closely with authors, journalists and publishers. When Gerhard Bonnier put out his first book and opened a small book store in 1804 in Copenhagen, he couldn’t have realized 200 years later it would have developed into an interna-

Australia

Books

China

Business to Business

Denmark

Growth Media, Magazines and Business to Business

Estonia

Business to Business

Finland

Books, Growth Media, Magazines, Business to Business, Broadcasting

France

Books

Germany

Books

Lithuania

Business to Business

tional media conglomerate, working in all media channels in companies and brands across 17 countries. Bonnier AB is wholly owned by the Bonnier family.

Netherlands Magazines Norway

Books, Growth Media, Magazines, Business to Business

Poland

Newspapers

Russia

Magazines, Newspapers

Slovenia

Newspapers

Sweden

Books, Broadcasting, Magazines, News, Growth Media

Ukraine

Newspapers

U.K.

Books

U.S.

Books, Magazines

NET SALES BY BUSINESS AREA (SEK M)

OPERATING EBITA BY BUSINESS AREA (SEK M)

8,000

800

6,000

600

4,000

400

2,000

200

Bo

Bo

B ok ook s In s N te or Bu r d si Br nat ic ne oa io ss dc na to as l Bu tin s g M ine a N ga ss ew z s in Gr Sw es ow e th den M ed ia

1,000

B ok ook s In s N te or Bu r d si Br nat ic ne oa io ss dc na to as l Bu tin s g M ine a N ga ss ew z s in Gr Sw es ow e th den M ed ia

10,000

4  BONNIER ANNUAL REVIEW 2012

SWEDEN 56%

NET SALES BY COUNTRY NORWAY 9%

U.S. 6%

FINLAND 12%

DENMARK 7%

GERMANY 6%

OTHER 4%

NET SALES BY REVENUE STREAM ADVERTISING 34% SUBSCRIPTION 22%

BOX OFFICE 4%

BONNIER ANNUAL REVIEW 2012  5

0THER 7%

DIRECT SALES 11%

RETAIL 22%

COMPANIES WITHIN BOOKS NORDIC *B  onnier Books Finland * Bonnier Books Sweden * Cappelen Damm – Norway

Digitalization remains a big issue for the Nordic book market – and Bonnier.

6  BONNIER ANNUAL REVIEW 2012

ILLUSTRATION: ELISABETH MOCH

E-Books on the Way

BOOKS NORDIC. Lower sales in several tough

markets meant Bonnier’s Nordic book operations had a tough year. But it was still a year with some important prizewinners.

Book sales fell some 13 percent in Sweden, a number of publishers announced they would publish fewer books in the coming year, No rstedt’s discontinued three of its book clubs and online book retailer giant Amazon contacted Bokrondellen so it could sell Swedish books. The year 2012 was hardly fantastic for the book industry in Sweden, and with new international players the question is what will happen in the near future. In those countries that Amazon has already established itself, it has meant price dumping, especially for e-books, and in Sweden that clearly would mean a threat to the big local actors on the online scene, Bokus and Adlibris. CHRISTMAS 2012 had Norway’s answer to the Zlatan Ibrahimović book success in Sweden, with Lars Myttings Hel Ved (Solid Wood), which sold some 150,000 copies. Other talk of the year was of course e-books, hopes for a law for fixed book prices and the general book industry crisis. During 2012 the bookstore chain Notabene closed 13 of its shops (the chain has over a hundred). The reason was the difficult financial situation in Norway, and even competitor Norli-Libros did worse in 2012. But the low-price chain Boklageret invested heavily: It plans to expand from six to 20 stores during 2013 and increase turnover with the help of lowered prices. EVEN IN FINLAND, book publishers were forced to cut back as book sales continued to decrease. Among others, Gummerus took the difficult decision to lay off staff during the year. Cutbacks were made in children’s books and non-fiction on account of the shrinking market, but Finnish literature continues to sell well.

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BY KLAS EKMAN

BONNIER ANNUAL REVIEW 2012  7

NET SALES BOOKS NORDIC (SEK M) 5,000 4,000 3,000 2,000 1,000 2009

2010

2011

2012

BONNIER.

Receding Markets.

In 2012, Bonniers’ Nordic book and e-commerce operations were merged to form a single group, Bonnier Books Nordic. The acquisition of the Pocket Shop bookstore chain was one of the most significant events for Bonnier Books Nordic and was approved by the Swedish Competition Authority in October 2012. Pocket Shop has 16 stores in Sweden, three in Germany and one in Finland. Pocket Shop generates highly favorable earnings and has well-functioning operations. Bonnierförlagen is active in a highly pressurized and receding Swedish book market with weak sales. Continued favorable sales levels but weaker earnings than previously and the requirement for continued digital expansion led to the implementation of an extensive improvement program featuring a focus on profitability. The August

Prize 2012 was awarded to Göran Rosenberg’s Ett kort uppehåll på vägen från Auschwitz - A Brief Stopover on the Way From Auschwitz (Albert Bonniers Förlag) and A B C å allt om D – A B C and Everything About D by Nina Ullmaja (Bonnier Carlsen). The growth of Adlibris in the Nordic countries increased. In June, Adlibris successfully relaunched Letto, its own e-reader. IN A DECLINING Finnish book market, 2012 was characterized by work to complete the integration of the WSOY and Tammi publishing houses, which following the merger now comprise the largest group of general literature publishers in Finland. During the year, the Finnish publishing operations relocated to the same address. In addition, the Kirjakeskus book distribution company was acquired during the year. CAPPELEN DAMM, the largest publisher in Norway, continued to post strong earnings with robust growth in academic literature publications. Torbjørn Færøvik, an author at the publishing house, was awarded the 2012 Brage Prize for his book Maos rike: En lidelsehistorie – Mao’s Kingdom: A Story of Suffering. Akribe A/S was acquired during the year.

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COMPANIES WITHIN BOOKS INTERNATIONAL *B  onnier Media Deutschland – Germany * Bonnier Publishing – Australia, France and U.K.

E-books, like Carlsen's app for kids, Benny Bär auf dem Bauernhof, are increasing their sales share in Germany.

8  BONNIER ANNUAL REVIEW 2012

ILLUSTRATION: ELISABETH MOCH

A Bigger Share for Digital

BOOKS INTERNATIONAL. With book markets

decreasing around the world, e-books and online sales are ever more in focus.

After the huge successes of E.L. James erotic book series, self-published books became a hot topic for the year, yet another potential threat for established book publishers. But the phenomenon isn’t necessarily all negative. The Fifty Shades series would never have sold as much without Random House. By picking out a book that was already a hit, the publisher took less of a risk than if it had pulled James’ trilogy from the slush pile. And at the Frankfurt Book Fair, one of the hottest books was James Oswald’s supernatural thriller Natural Causes. Already then, a reported 100,000 copies had been sold as a self-published book. The decrease in the number of brick-and-mortar bookstores has meant fewer chances to show off books and possibly fewer impulse purchases. But even here there are some silver linings. Two years ago, the mammoth American bookstore chain Borders went bankrupt, but in the summer of 2012 the American Booksellers Association (ABA) reported that small independent bookstores had increased during the year. The growth is still pretty modest – the association gained 43 new members during the year – and the number is still barely half of what it was before the big chains and Amazon started to dominate the market. In May, the ABA reported also that booksellers sold 8 percent more books in bookstores than they had the year before. ONE INTERESTING development in e-books is the Book Genome Project. Launched in 2011 by the U.S. company Booklamp, it became much bigger during 2012. The project is particularly inspiring since not only does it send recommendations based on earlier purchases and searches, but also analyzes the individual books. With the help of this metadata, the “DNA” of books can be understood and compared. With the Book Genome Project, language and design are important factors, which can reasonably give a more interesting “long-tail” effect for the book industry in that customers can get tips not just for the most popular books others have bought but also find interesting older books. Publisher’s earlier book release lists with out-of-print books can become profitable again in an e-book format. Global sales do lead to certain cultural problems. For example, China is a market with different rules. E-books are significantly cheaper than in other markets. The profit margin per e-book is considered lousy. Instead it’s the huge population

BONNIER ANNUAL REVIEW 2012  9

and the economy of scale that is interesting. China differentiates itself in another way: reading a book in a cellphone is far from unusual. BY KLAS EKMAN

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NET SALES BOOKS INTERNATIONAL (SEK M) 5,000 4,000 3,000 2,000

Piccolia in France had a much better year with a big improvement in its returns rate. Hot Key Books in London launched its first nine fiction titles to critical acclaim and Templar and Autumn Publishing appointed new managing directors in the summer following poor starts to the year. The Five Mile Press was the best performing company and was one of only three publishers to show any growth in Australia between 2011 and 2012.

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1,000 2009

2010

2011

2012

BONNIER.

M&A.

Bonnier Media Deutschland faced a difficult market in Germany. But the publisher had a number of titles in the top ten of the German bestseller list. Two new units joined the group: the acquisition Berlin Verlag and the start-up Aladin Verlag. Digital products for Bonnier Media Deutschland are gaining more and more importance: In 2012 the share increased to 4.5 percent of total turnover. It has been a promising and profitable year for Bonnier Publishing, based in the U.K. with additional companies in Australia and France. Weldon Owen was successfully moved from Sydney to London.

Whenever and Wherever TV

ILLUSTRATION: ELISABETH MOCH

Mobile viewing is on the upswing as smart phones become ubiquitous around the world.

COMPANIES WITHIN BROADCASTING * MTV Media and Radio Nova – Finland * Nyhetsbolaget – Sweden * T V4 - Sweden

10  BONNIER ANNUAL REVIEW 2012

BROADCASTING. Television viewing habits

continue to change as video-on-demand makes big gains.

We were expected to abandon the TV guide for good in 2012 and instead choose to watch what we want, when we want and where we want. Not surprisingly, a large share of the viewing audience switched from TV screens to tablets, computers and mobiles. However, it is too early to declare “linear” TV as officially dead. Television viewing had been increasing steadily since 1997, aside from a slight dip in 2005. However, for the first time since that year, TV viewing declined in 2011 in Sweden, measured as the number of minutes. And the decline continued slightly in 2012, with viewing ending at about 160 minutes per person per day, down from 162. This is a trend that is similar in most western countries. The exceptions are live TV transmissions, which are still highly popular. In both the U.S. and the U.K., major sporting events such as the Olympics are strong, with American football topping all viewing lists in the U.S. Even entertainment programs such as American Idol have a strong following both on TV and the Internet. But, according to Nielsen, the proportion of people worldwide who watch television at least once per month declined from 90 percent to 83 percent in the past year. SO, WHERE HAVE ALL the TV viewers gone? The play on-demand services offered by the established channels account for a large proportion, and this largely involves programs that are also popular on regular linear TV. Already next year, Internet use is estimated to surpass traditional scheduled television viewing in most of Europe. At the same time, mobile viewing is increasing as more people purchase smartphones. But acquiring a tablet or a smartphone does not necessarily mean abandoning the television set. According to a survey from independent analysts Nielsen, 88 percent of Americans who have tablets use it while watching television. In the U.K., the figure is 80 percent, while 71 percent of Greeks and Italians surf while watching television. DURING THE YEAR, scheduled TV viewing received competition from streaming services. Other media, such as daily newspapers, are also investing in more mobile material on their websites and YouTube and Vimeo continue to be tough competitors for the viewers’ time. But despite so many different players and platforms vying for viewers’ time, particularly adver-

BONNIER ANNUAL REVIEW 2012  11

tising revenue, traditional TV viewing remains strong.

*

BY OSKAR HAMMARKRANTZ

NET SALES BROADCASTING (SEK M) 10,000 8,000 6,000 4,000 2,000 2009

2010

2011

2012

BONNIER.

Highs and Lows Swedish TV viewing in 2012 was stable albeit very slightly lower than 2011. And according to independent analysts IRM, while total advertising investments declined, with television and the Internet the only media not affected. Bonnier’s Swedish TV company, TV4, reported recordhigh advertising sales and captured market shares. The year was characterized by major sporting events and higher investments in and successes for Swedish program content. These were investments that entailed higher scheduling costs and thus weaker profit margins compared with the preceding year. Bonnier’s Nordic pay TV company C More reported strong growth in the number of subscribers but the cost of rights continued to increase

through intensified competition for movies. During the fall, a new web-based film service Filmnet was launched, providing on-demand movies and TV series. NYHETSBOLAGET Sverige AB, in which TV4 Group’s talk show department and local news programs have been incorporated, was established on January 1, 2012. The company was formed with the task of launching Sweden’s only dedicated news channel, TV4 News. The new company produces news programs and talk shows for TV4, while TV news programs and social material are sold to external media. By the end of the year, TV4 News was available at all major Swedish distributors. Bonnier’s Finnish TV company MTV Media launched AVA, a new TV channel directed at younger women. The weak local economy and increased competition resulted in lower results for MTV Media, which implemented a major austerity package in the fall to better meet the challenges for the coming year.

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for granted in Russia, where business newspaper Delovoy Peterburg faces powerful critics every day. Editor-in-Chief Maxim Vasjukov explains.

A Neutral Voice Against Corruption What is Delovoy Peterburg’s policy on freedom of the press? Our policy on freedom of speech is no different from leading political Western European publications or from the Bonnier Group’s policies. The principles of freedom of speech are strictly observed by other major Russian business print and online media. Putin and his inner circle don’t infringe on this freedom. In order to control the mood of the electorate, the TV and major newspapers’ censors are enough for the Kremlin. What are the biggest threats to Delovoy’s freedom to publish news? Our greatest threat is from staunch supporters of the current government, who, in contrast to the officials themselves, don’t understand why the officials are being criticized or why information should be spread about violations in budget spending or information on corruption. The State Duma regularly introduces idiotic legislative initiatives. Just recently, the idea of including the Russian media as a strategically important industry for the economy was quite seriously discussed, as was the construction of submarines or intercontinental missiles. In the event this happened, private capital and especially foreign capital in media would be reduced to zero. Fortunately, it didn’t pass and I hope it doesn’t in the future. But Putin’s

DELOVOY PETERBURG AT A GLANCE * A leading business daily for the St. Petersburg region of Russia, Delovoy Peterburg is part of Bonnier Business Press. * Founded in 1993 * 20,000 circulation * 2.5-2.7 million monthly site visitors * 260 employees

supporters are a hundred times more dangerous than Putin himself. In a country where freedom of the press is relatively new and still shaky at times, what are the expectations of readers? Our readers pay us for objective and unbiased coverage of what is happening in

city business. If we do our job well, they will continue to pay. A distinctive feature of Russia is that many people, especially the elderly, were brought up with Soviet propaganda. They honestly don’t understand why it is important to criticize the government. They expect information from us and aren’t interested in our assessments on what’s happening. And in fact, we make very few value judgments: We have an editorial column from Monday to Thursday and columnists on Fridays. Still, we should consider the expectations of our audience - the entire audience - not just the liberal part. Of course, we give space to different people with various points of view. But if only you knew how hard it is to find a columnist who, for example, praises the financial policies of the cabinet of ministers. Someone who won’t just say the minister of finance is right because Putin appointed him, but explains what is right about him. The problem is, whereas the majority of print readers are satisfied on the whole with what’s happening in this country, most journalists (not just at Delovoy Peterburg) are regular critics of the regime. We constantly have to strive for some kind of balance – we can't have our colleagues letting opposition spokesmen do the thinking for us. Have you had to face difficulties? The most pressure we have ever been subject to was in 2006-2007. At that

12  BONNIER ANNUAL REVIEW 2012

PHOTO: ANDRE KOLGUN

FREEDOM OF THE PRESS is nothing to be taken

“Our readers pay us for objective and unbiased coverage of what is happening in city business. If we do our job well, they will continue to pay.”

time, the city administration initially stopped us from earning money from public contracts and later created a special section on its website where it published rebuttals to our articles. Sometimes they were denials of material from other publications, but that was rare. They wanted to form the perception that our newspaper never pub-

BONNIER ANNUAL REVIEW 2012  13

lished truthful material, even accidentally. The campaign against us didn’t yield any results and we didn’t lose any advertisers or subscribers. Eventually, officials had enough and were resigned to the fact that we remained an independent media source. I still get a lot of negative reviews on articles critical of

the city administration, but they nevertheless are still one of our biggest subscribers.

*

COMPANIES WITHIN BUSINESS TO BUSINESS * Bonnier Business Press – Denmark, Estonia, Finland, Lithuania, Norway, Poland, Russia, Slovenia and Ukraine *B  ørsen – Denmark

Danish business daily Børsen had a record year in 2012.

14  BONNIER ANNUAL REVIEW 2012

ILLUSTRATION: ELISABETH MOCH

Savings, Profits and more Subscribers

BUSINESS TO BUSINESS. Readers get their

financial news in their phones and on their tablets as digital subscriptions for business papers increase substantially. Pearson, owner of the British Financial Times, came out with a profit warning prior to the release of its 2012 results. The venerable paper gave the transition from print to digital as the reason. The restructuring was concrete, with 35 of 600 editorial positions disappearing; the paper’s management hoped to solve it with voluntary resignations. At the same time the editorial staff got the news about the downsizing, it was announced the paper would be recruiting ten new “digital reporters” in line with the Financial Times’ strategy “digital first.” “News now is not the newspaper,” reflected the Financial Times editor-in-chief, Lionel Barber. The Financial Times went into 2012 with profits of GBP 76 million from 2011, thanks primarily due to its online successes. Digital subscribers increased 28 percent during a one-year period and stood at 267,000 at the beginning of 2012. The Financial Times had 600,000 subscribers total both print and digitally, and was read by 2.2 million each day. One way the newspaper is saving money is that the first pages in the U.S., Asia and Europe look alike now – the night desk does a special edition for the U.K. only. IN GERMANY, Handelsblatt managed to beat out the Financial Times Deutschland in the end. The 12-year-old German Financial Times adventure is estimated to have cost its various owners approximately EUR 250 million. The Wall Street Journal’s total circulation at the end of September 2012 increased to 2.3 million, with 800,000 of those digital subscribers. The Wall Street Journal is also increasing the frequency of its monthly magazine – WSJ. – which provides new income from luxury advertisers. WSJ. has taken in 143 new advertisers and the magazine has spawned another luxury title, WSJ. Money, with a focus on wealth and another magazine on real estate. The website WSJ.com has increased to 60 million unique visitors per month and an important reason for the digital success are new local sites in growth markets. The paper had at the end of the year 11 different special editions in eight different languages – Korean and Indonesian were the latest to come in 2012. The Wall Street Journal reports also how readers are taking to their cell phones. Some 32 percent of those surfing WSJ.com are coming in via

BONNIER ANNUAL REVIEW 2012  15

mobile devices – phones account for 60 percent of the traffic and tablets for 40 percent. “Record profits and record circulation,” was how the Economist Group summarized the year. The Economist managed to increase profits to GBP 64 million, according to the figures for 2011-2012, which are calculated from March to March. Circulation increased to 1.6 million, including 123,000 digital subscribers.

*

BY FREDRIK SJÖSHULT

NET SALES BUSINESS TO BUSINESS (SEK M) 5,000 4,000 3,000 2,000 1,000 2009

2010

2011

2012

BONNIER.

Good for Business

Bonnier’s Danish business daily Børsen reported another strong year with a profit margin of 13 percent – the highest in the history of Børsen – following the successful effort to increase the quality of its contents and to improve the profitability of subscriptions. The EBITA for Bonnier Business Press (BBP) improved for the fourth consecutive year and generated or-

ganic growth for the second consecutive year. Continued cost savings and an increased focus on new products and services, such as events and conference activities, contributed to the improvement. The operations in the Baltic region and Russia also benefitted from the recovery in the economic trend and favorable growth of 2.5-4 percent in GDP. The business magazines Veckans Affärer and Resumé will be integrated in BBP’s organization as of January 1, 2013. The handbook operations in Børsen Forum were restructured during the year and partly integrated with Børsen. World History magazine was launched in Estonia and Lithuania. The remaining 50 percent of medical journal Praktisk Medicin in Denmark and Poland was acquired. In Slovenia, Stotka was started, a magazine for older readers. Half a dozen new websites, directed at smaller sections of the business community, were established in Estonia, Slovenia and Poland. Finally, new presidents were appointed in Poland and Ukraine.

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PHOTOS: SIMA KORENIVSKI

Life At Bonnier

GRID is about inspiration. Speakers included, top right, violence interrupter Ameena Matthews; bottom right, former Buddhist monk Andy Puddicombe.

GRID. Not Your Usual Conference LUNCH AND A TALK by top chef Marcus Samuelsson, tips from Google’s user experience director Margaret Stewart, inspiration from book cover design star Chip Kidd. These and other speakers from Bonnier’s 2012 GRID conference give employees a fresh take on the world. GRID helps Bonnier staff from across the globe stay inspired, gives them a chance to network and feel a part of the bigger Bonnier.

Started up by Jonas Bonnier six years ago, GRID is not your usual company conference. Modeled on the prestigious TED conferences, speakers talk for 18 minutes on a range of topics that are designed to inspire, provoke, delight and think long and hard. There is lots of built-in networking time, including periods where participants are matched up to talk with each other in “dates.” The event is held over two days and

the 250 participants come from all parts of Bonnier, with 50 percent of those attending have not attended the previous year. Well-established within Bonnier, getting a coveted place at GRID and becoming a “GRIDster” is a badge of honor.

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PHOTO: MAGNUS BERGSTRÖM

TOP REPORTING. Swedish Grand Journalism SWEDEN’S MOST prestigious award for journalists, the Swedish Grand Journalism Prize has been awarded annually by Bonnier since 1966. Each year, the start of the fall season is marked by speculation within media as to who will be finalists, which are announced at the end of October. The winners are revealed at a gala ceremony and dinner – in 2012, held at Opera Rotundan in Stockholm.

Carina Bergfeldt.

THE 2012 WINNERS of the Swedish Grand Journalism Prize were: Carina Bergfeldt, Aftonbladet, Storyteller of the Year; Olle Zachrison, Carolina Neurath, Jan Almgren, Mark Malmström, Peter Grensund and Ola Henriksson of Svenska Dagbladet, Innovation of the Year; Bo Göran Bodin and

Daniel Öhman, Swedish Radio, Investigation of the Year; and Inger Atterstam, medicinreporter, Svenska Dagbladet, the Lukas Bonniers Stora Journalistpris for lifetime achievement. ALONG WITH the Swedish Grand Journalism Prize, Bonnier sponsors the Finnish Grand Journalism Prize, awarded each spring in Helsinki since 2001. In Estonia, the Bonnier Award is the country’s oldest and most prestigious journalism prize, established in 1996. Expressen, the Swedish national daily, since 2006 has given out a journalism prize in honor of long-time reporter Per Wendel.

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16  BONNIER ANNUAL REVIEW 2012

PHOTO: K ARIN PORSHAGE

PHOTO: K ARL OSK AR BJURENSTEDT

Bonnier Sales Awards winners Fredrik Sundberg and David Ginsberg (with Jennifer Girhammar on the plaque).

Karin Porshage.

SALES. Recognizing Top Sellers

GROW. Exchange

AN INCENTIVE AND reward for the ad sales staff that bring in a large proportion of the company’s income, the Bonnier Sales Awards recognize those who have gone above and beyond just meeting their sales goals. Competing against other sales representatives and managers within newspapers, magazines, TV, radio and cinemas, the winners were announced at an awards ceremony in March at Stockholm’s Grand Hôtel.

The winners in 2012 were: Jennifer Girhammar, Bonnier Tidskrifter for Rookie of the Year; Fredrik Sundberg of TV4 Sverige for Sales Manager of the Year; and David Ginsberg of Bonnier Corporation for Sales Representative of the Year.

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RECOGNITION. Prizes & Grants BONNIER HAS A LONG tradition of supporting creative minds – from August Strindberg to Tomas Tranströmer – by nurturing their talent and publishing their works. Stipends and grants both to Bonnier employees as well as prizes to people outside Bonnier are another way to support talent. INTERNAL STIPENDS & GRANTS INCLUDE:

The Albert Bonnier 100th Anniversary Private Stipend, the Gerard Bonnier Employee Stipend and the Åke Bonnier Private Foundation 75th Anniversary Stipends and Albert Bonnier Stipend Fund, among others.

EXTERNAL PRIZES & GRANTS INCLUDE:

The Albert Bonnier Foundation 100th Anniversary Stipend Fund, Albert Bonnier Prize for Business Owner of the Year (Dagens industri), Albert Bonnier Stipend Fund for Swedish Authors, Albert Bonnier Stipend Fund for Young and New Authors, Gerard Bonnier Essay Prize, Gerard Bonnier Poetry Prize, Maria Bonnier Dahlin Foundation Stipends for Current Young Swedish Artists and the Osterwold Prize of Hörbuch Hamburg, among others.

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BONNIER’S UNIQUE EXCHANGE program GROW gives employees a chance to apply for three-month positions in a different Bonnier company in a new country. Instituted in 2009, the program has given 133 employees a chance to take advantage of the inspiration and idea-exchange that GROW provides. We talked with former GROW participant Karin Porshage of Swedish online bookseller Adlibris, who spent three months in Australia at the Five Mile Press.

Why did you apply for GROW? I’ve worked in the Swedish book industry for 12 years and I wanted to get an international perspective: How do you sell books on the other side of the world? I also wanted to challenge myself by changing work places and situation completely so I could learn a lot of new things – and I’ve really done that! One of your greatest memories? Being invited to lunch by photographer Andrew Chapman and his wife to their home in the mountains. I got to see the photos to the sequel to the beautiful bestseller Woolsheds. What’s best about GROW? I learned so much about the book business, about Bonnier, about Melbourne and Australia and about myself and what drives me.

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BONNIER ANNUAL REVIEW 2012  17

Figuring Out the Digital Jump

Digital takes a bigger share for magazines – and advertising – everywhere.

18  BONNIER ANNUAL REVIEW 2012

ILLUSTRATION: ELISABETH MOCH

COMPANIES WITHIN MAGAZINES * Bonnier Corporation – U.S. *B  onnier Publications – Denmark, Finland, Norway, Russia and Sweden *B  onnier Tidskrifter – Sweden, Netherlands

MAGAZINES. The year 2012 has been tough for

magazines, with decreasing market shares and fewer readers. A successful transition from print to digital is ever more important.

For the magazine industry, 2012 closed with the legendary title Newsweek ending the publication of its print edition. From 2013, only the digital version of the magazine will be published. This closing symbolizes the difficulties faced by print media in many corners of the world. But, Newsweek’s move also can be seen as an example of the continuous renewal of the magazine in the form of new titles, content changes and keen interest in new technological ways of telling stories that are perfectly suited to the magazine. But talk about the demise of print is entirely misleading, particularly regarding magazines. During the year, global advertising in magazines rose slightly more than 4 percent, according to independent analysts Zenith Optimedia. Growth for 2013 and 2014 is expected to exceed 5 percent and 6 percent, respectively. HOWEVER, THESE POSITIVE figures can be compared with other statistics showing that circulations for many paper magazines in Europe and the U.S. are falling and that the high growth in the advertising market is attributable to digital media. Magazines are losing market share in the advertising markets of almost all countries, even in parts of the world showing extremely rapid growth. The U.S. market is showing the fastest changes, with the consumer magazine market estimated to have lost almost USD 1 of every USD 5 of revenue between 2007 and 2011. Although PricewaterhouseCoopers predicts modest growth of slightly more than 2 percent over the next two years, no one is expecting the revenue peaks of the past anytime soon. The change has been less dramatic in Europe, in part due to the fact that European magazines are less reliant on advertising than in the U.S. Consequently, the challenge faced by the magazine industry in the next few years is to adjust costs to the new revenue levels, while major investments are needed to develop digital products that can leverage the opportunities presented by new technological platforms.

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BY ANDERS MALMSTEN

BONNIER ANNUAL REVIEW 2012  19

NET SALES MAGAZINES (SEK M) 5,000 4,000 3,000 2,000 1,000 2009

2010

2011

2012

BONNIER.

Digital Shift. A rapidly changing advertising market combined with declining circulations resulted in major changes to conditions in the magazine market for Bonnier Tidskrifter, Bonnier’s main magazine operations in Sweden. A far-reaching savings plan was implemented during the year, which included a 15 percent reduction in personnel. Bonnier Tidskrifter has a number of titles that are market leaders in their respective segments, meaning that the publisher fared reasonably well despite the conditions. In parallel with the focus on print magazines, a shift is under way to the digital world. Online traffic has risen 40 percent. The publisher radically revamped its digital products and launched a world-class advertising environment. In the U.S., Bonnier Corporation experienced another tough advertising market in 2012. Revenues declined,

with print advertising lower and digital ad revenues higher than the previous year, both consistent with industry trends. Bonnier Corporation also significantly reduced its expenses. Digital operations for the company continue to improve as Bonnier Corporation becomes more advanced and sophisticated with database marketing and data management. Bonnier Publications, with headquarters in Denmark, launched several print products and achieved a high profit despite the poor market conditions. The company launched Tara Frisk in Norway and Costume in Finland as well as two video series. Bonnier Publications devoted great attention to the development of digital services and products. Bundling of print and digital products and services combined with new payment methods and subscription models is assumed to mitigate the negative effect from the present print business to a certain extent.

*

The Right News Equation

Afternoon daily Expressen broke records this year with the number of visitors to its mobile site.

ILLUSTRATION: ELISABETH MOCH

COMPANIES WITHIN NEWS SWEDEN * Dagens industri * Dagens Nyheter * Expressen * Sydsvenskan * Bink * Bold Printing Group

20  BONNIER ANNUAL REVIEW 2012

NEWS SWEDEN. Hitting the balance for paid

versus free content online has been a focus for newspapers. In Sweden, newspapers found their own digital payment solutions.

Screaming headlines warning of a newspaper crisis continued to make life glum for the global daily press, punctuated by harsh recommendations for press laws from the Leveson Inquiry following the News International phone hacking in the U.K. But all is not doom and gloom. The success continues for the world’s largest online newspaper, MailOnline, with revenue increasing 74 percent by August. The newspaper now has 7.1 million unique visitors per day. The website has a clear digital focus, creating a distance between it and other newspapers in the group, and with its own web editorial offices in New York and Los Angeles, which now have been expanded. MailOnline also launched a special Indian edition during the year and ventured into TV in the U.S. and U.K. – an area in which Aftonbladet, Expressen, Verdens Gang and Ekstrabladet from the Scandinavian daily press are considered to be at the forefront. The daily press also continued to seek out successful models for consumers to pay for online content. Some 11 of the 20 largest newspapers in the U.S. have now set up paywalls. The greatest source of inspiration in the industry is the New York Times, which gives users a certain number of free clicks a month under a “metered model.” This payment model has now been hailed as a success and praised as the best in the daily press sector. The New York Times, and its sister publication the International Herald Tribune, now have 566,000 digital subscribers, which is estimated to have brought in USD 600 million for the New York Times in 2012 – a full 12 percent of its total circulation revenues. The success of mobile versions was another cause for celebration for the daily press, although trends in recent years have been toward traditional – albeit increasingly sophisticated – mobile websites gaining in importance, while specially developed apps have not always enjoyed the breakthroughs that developers had hoped for. One of the most successful players in Europe is the German publication Bild, which has reveled in the major success of the simplified PDF version of its newspaper edition. BY FREDRIK SJÖSHULT

*

BONNIER ANNUAL REVIEW 2012  21

NET SALES NEWS SWEDEN (SEK M) 5,000 4,000 3,000 2,000 1,000 2009

2010

2011

2012

BONNIER. Ads Down, Subscriptions up The year 2012 was characterized by declining advertising revenue for Bonnier’s Swedish morning papers Dagens Nyheter and Sydsvenskan. At the same time, revenue from readers became more significant and Dagens Nyheter was able to once again report an all-time-high for subscription revenue. During the year, DN launched a digital package making it possible for readers to access the contents of several different platforms. Sydsvenskan continued to reduce its costs and implemented a highly appreciated revamping of the newspaper in the fall. At the end of the year, Editor-in-Chief Daniel Sandström announced that he will be stepping down and the board of directors decided to appoint CEO Lars Dahmén as the editor-in-chief from January 1, 2013. For the tenth consecutive year, Bonnier’s Swedish evening paper Expressen posted

a profit for 2012, despite the continued decline in the Swedish circulation and advertising market. Expressen’s circulation is now equal to that of its main competitor and several records were broken during the year, such as for visitors to the Expressen mobile site and to Expressen TV. Expressen gained several new business areas in the autumn – Magazines, Digital Media, GT and Kvällsposten – and the operation is now focusing intently on new media. BONNIER’S BUSINESS daily in Sweden, Dagens industri, had a profit margin of over 20 percent despite falling advertising. In September, the successful weekend supplement Di Weekend celebrated its 10th year with a special 124-page anniversary issue. The paper’s Gazelle awards program continued to be developed during the year, with a record number attending to see Swedish Prince CarlPhilip announce the winners of the Super Gazelle. For Bonnier’s Swedish print operations, Bold Printing Group, 2012 was an intense year, with the installation of a new printing press in DN/Ex, which considerably increased the capacity and significantly improved print quality.

*

CONTENT MARKETING gives companies an

alternate route to get their message out. Spoon founders Anders Ribba and Melker Forssén explain.

How to Choose Your Channels

BUT ONE OF THE fastest growing responses to such fragmented target groups is to create your own way to reach customers with editorial content, whatever the medium. “We believe the content should be the brand, and the brand the content,” says Melker Forssén, creative director for Spoon and one of the co-founders of the company along with Ribba. “It’s more effective than interrupting someone else’s brand with an advertisement for your brand. Corporate brands are becoming stronger, strong enough that they can easily carry the content in their own channels, which can be just as popular with consumers as regular media channels.” Big brands are very publicly making

a commitment to content marketing: In the summer of 2012, Coca Cola released Content 2020, a video explaining the company’s strategic plan to use content marketing and brand stories, and it quickly went viral. THIS KIND OF initiative only bodes well for those providing content marketing services. Even “traditional” media brands are getting into the act – in early 2013, Swedish evening paper Expressen launched Wasp Communications, which will focus on contract publishing. In Finland, magazine publisher Bonnier Publications Oy has an unofficial side business providing graphic design for a range of clients. While the current content marketing boom is a huge plus for Spoon and its future, the company has a long history of successes behind it to build on. “We got our start when I needed someone to do the design for a pitch I was making for a customer magazine and a mutual friend recommended Melker,” says Ribba. “Our pitch didn’t win, but we realized that we had a win-

SPOON AT A GLANCE. * Founded in 1998 by Melker Forssén, Anders Ribba and Håkan Johansson (who left the company in 2010) * 130 employees * Offices in Stockholm and Göteborg, Sweden * Turnover 2012: SEK 200 million

ning idea for how we could do customer magazines.” THEY QUICKLY proved it when they started up Du&Co, a ground-breaking customer magazine for the Swedish postal service, which was followed in short order by a number of big clients including H&M, Telia and Microsoft. Bonnier bought first 70 percent of the company in 2006 and then the remaining 30 percent in 2010. In 2012, Spoon significantly expanded when it bought Tidningskompaniet, which made the combined company into the biggest content agency in Sweden. “Our biggest challenge now is to keep on delivering what we always have at the same high quality, but in ever greater amounts and new formats,” says Forssén. “Media is no longer linear, it’s not a matter of putting out a print magazine and then putting it up on the web, instead everything is done in symbiosis. Our challenge is to take contract publishing to video, and create TV at the same level as we first made Du&Co.”

*

ANDERS RIBBA: SPOON IN THREE WORDS * Entrepreneurial – “Our entrepreneurial spirit throughout the entire staff is a key part of our success” * Courage – “We dare to push our customers to break out of their boxes” * Artistry – “When we do something, we have to do it better than anyone else”

22  BONNIER ANNUAL REVIEW 2012

PHOTO: PETER JÖNSSON

Content is still king. Whether you call it contract publishing, branded media, content marketing or customer publishing, companies are increasingly putting out their own articles, videos and and other content in their own channels – everything from business-to-business magazines to game apps tied to a campaign for a new product. “The media world is so fragmented and audiences have become so sophisticated at filtering out advertisements that companies need to find new ways to reach people,” says Anders Ribba, CEO of Swedish content agency Spoon. With consumer groups moving rapidly between types of media, companies are concerned about whether they get value for their money with advertising and cross-media advertising solutions are becoming standard.

Content agency Spoon co-founders Melker Forssén and Anders Ribba.

BONNIER ANNUAL REVIEW 2012  23

Earning Attention COMPANIES WITHIN GROWTH MEDIA * SF Consumer Entertainment *S  vensk Filmindustri *M  obilab * Toca Boca *S  poon *B  onnier Gaming *S  candinavian Studios AB *M  ag+ 

ILLUSTRATION: ELISABETH MOCH

Reserving tickets online is popular in Sweden, with 1 million downloads of SF Bio's smart phone app.

24  BONNIER ANNUAL REVIEW 2012

GROWTH MEDIA. As social media evolves,

content shifts and so do those producing it. Have you ever seen an ad for Facebook? No, yet despite not spending a single penny in advertising, the site has managed to become the center of the world. Why? Because it’s earned its place. The media landscape, which ten years ago was about purchased media, has become fragmented and today it is increasingly divided up into three types: bought, earned and owned media. Traditionally, the media houses have been best at bought media: to attract target audiences with attractive content – journalism for example – and offer it to advertisers at an appropriate price. But since 2010 its appeared increasingly clear that earned and owned media are growing quickly. Owned media, where traditional non-media companies publish their own content, known as content marketing, is one of the fastest growing marketing techniques in the world. What was originally customer magazine publishing has developed into an advanced strategic piece of the puzzle for marketing managers, where content drives sites, newsletters, apps, LinkedIn sites, videos and events. SOCIAL MEDIA HAS had lots of users for a number of years now, but during 2012 social media gained power as a disseminator of news. A recent survey from Pew showed that a fifth of U.S. news consumers got their news via social media (primarily Facebook), and among youth, social channels are much more important than daily papers. In the social feed, there’s no longer an editor who decides what is important, instead it is driven by a friend’s recommendations and choice of news. This new kind of social media “editing” is growing quickly and during 2012 has given rise to sites like Buzzfeed and Waterpaint. Both have quickly established themselves as news sources with their Facebook-friendly and clickable journalism. Even old standards like The Guardian and The Economist have gotten closer to readers and let social behavior steer the choice of digital news. The new social way of pushing certain stories, tales and events to prominence has also shown itself to work well in mobile channels. Despite the growth of owned and earned media while social “editing,” it’s the growth of mobile that has had the strongest impact on the future’s media companies. In 2012, 63 percent of all Swedes aged 16-45 surfed on mobile devices. Two years ago, the number was 6 percent – the question is whether any other new technology has ever won acceptance so quickly. The word “explosion” tends to be overused, but for those who look at mobile development, any other word would seem too weak.

*

BY OLLE LIDBOM

BONNIER ANNUAL REVIEW 2012  25

NET SALES GROWTH MEDIA (SEK M) 5,000 4,000 3,000 2,000 1,000 2009

2010

2011

2012

BONNIER.

Growing Globally

Bonnier Growth Media, a business area that groups together a number of growth companies with a digital focus mainly on kids media, online ads & leads, publishing tools and online gaming, was founded in the last fourmonth period of the year. Since their launch, both the Toca Boca and Mag+ start-up companies have been operating in a global market, with the growth in tablets and smartphones as a strong driving force. The Swedish market is a growth area for Bonnier Gaming, with the potential for expansion to several other areas. The Bonnier Growth Media companies have offices in Stockholm, New York and San Francisco. The new format and production company Scandinavian Studios AB was established in partnership with Anna Bråkenhielm in Sweden. The company’s first proprietary format, Våra Skön-

aste Gårdar (our loveliest gardens), was broadcast on TV4. The format has been sold to several countries. Bonnier's cinema businesses include SF Bio, with movie theaters in Sweden, Norwegian cinema chain SF Kino and video-on-demand service SF Anytime. The year was a commercial success for movie theaters with an alltime high for all business areas. Production and distribution company Svensk Filmindustri had many huge commercial successes at Nordic movie theaters in 2012, such as Ice Age 4 (Twentieth Century Fox), The Dark Knight Rises (Warner Bros) and Skyfall (MGM – with more than 3 million tickets sold). Svensk Filmindustri also produced Lasse Hallström’ s first Swedish film in 25 years, The Hypnotist (based on the Lars Kepler book), and Bille August’s first Danish film in 25 years, Marie Krøyer.

*

A CHALLENGING YEAR. Bonnier’s turnover

amounted to SEK 29.17 billion in 2012, a decrease of 2 percent compared with the previous year. The EBITA margin went from 4.2 percent (SEK 1.26 billion) in 2011 to 2.8 percent (SEK 806 million) in 2012.

NET SALES BY BUSINESS AREA (SEK M) 10,000 8,000 6,000 4,000

Bo

B ok ook s In s N te or Bu r d si Br nat ic ne oa io ss dc na to as l Bu tin s g M ine a N ga ss ew z s in Gr Sw es ow e th den M ed ia

2,000

OPERATING EBITA BY BUSINESS AREA (SEK M) 1,000 800 600 400

Bo

B ok ook s In s N te or Bu r d si Br nat ic ne oa io ss dc na to as l Bu tin s g M ine a N ga ss ew z s in Gr Sw es ow e th den M ed ia

200

“WHILE OUR DAILY newspapers and magazines did well in 2012, retaining or improving their profitability while facing a historic downturn in advertising, it was in TV and books that the results decreased markedly,” says Jonas Bonnier, CEO for Bonnier AB. “Earnings before goodwill and amortization amounted to SEK 555 million (950), and earnings before tax to SEK -217 million (664). The majority of the decline from last year was due to the weaker results from the previously very profitable book and broadcasting operations,” says Jonas Bonnier. “Despite a historical peak for TV4 in advertising sales, the earnings from broadcasting were lowered due to increased rights costs and a weak Finnish economy and advertising sales market. “The year 2012 was altogether a very challenging year for Bonnier, as well as for the media industry in general. On the bright side were significant improvements at southern Swedish daily Sydsvenskan, cinema chain SF Bio’s continued strong growth in earnings and the Danish business daily Børsen’s fantastic results in a difficult market.” BOOKS NORDIC’S earnings increased during 2012, while EBITA shrunk significantly to SEK 147 million (379). The decrease was due in part to a general downturn in the market: During 2012 book sales fell some 13 percent in Sweden. Part of the decrease can also be attributed to divestments and acquisitions from 2011, when Bonnier Utbildning was sold and WSOY was bought. During 2012, Pocket Shop was acquired, the leading paperback bookseller in Sweden, with stores in Sweden as well as in Finland and Germany.

BOOKS INTERNATIONAL’S earnings decreased somewhat, and EBITA was SEK 214 million (277), a decrease attributable primarily to a general downturn in the German book market and the absence of any megasellers. During 2012, Bloomsbury Verlag was acquired in Berlin. BROADCASTING’S earnings increased somewhat during 2012, while EBITA was nearly halved, ending at SEK 385 million (731). The lower results were due in large part to increased investments in programming and broadcast rights in an advertising market that, in Finland above all, grew worse than expected. The Swedish advertising market continued to be strong even if local advertising was somewhat worse than expectations, which were perhaps set too high. The results were offset by planned cost-savings and the newly established news production and distribution company Nyhetsbolaget and Sweden’s only 24-hour news channel TV4 News. BUSINESS TO BUSINESS had lowered earnings in 2012, while EBITA, primarily due to strong results from Denmark’s Børsen, grew in comparison to 2011 and ended at SEK 80 million (56). MAGAZINE’S earnings decreased by 5 percent during 2012. The EBITA was relatively unchanged at SEK 142 million (164). The results were lower due to a downturn in the Nordic markets, while the U.S.-based Bonnier Corporation achieved better results. The year was characterized by continued restructuring in all markets. NEWS SWEDEN, which consists of Bonnier’s Swedish daily newspapers,

26  BONNIER ANNUAL REVIEW 2012

NET SALES BY BUSINESS AREA SEK M 2012 2011 ∆ ∆ in % Books Nordic 4,096 3,964 132 3.3 % Books International 2,204 2,302 −98 −4.3 % Broadcasting 8,161 8,014 147 1.8 % Business to Business 1,040 1,093 −53 −4.8 % Magazines 4,907 5,250 −343 −6.5 % News Sweden 4,736 5,360 −624 −11.6 % Growth Media 4,216 3,987 229 5.7 % Other −184 −151 −33 21.9 % Bonnier AB total 29,176 29,819 −643 −2.2 %

showed greatly reduced revenues, while EBITA improved and amounted to SEK 232 million (222). The greatest improvement was for Sydsvenskan, which after restructuring in 2011 and 2012, achieved an EBITA on the plus side, like its fellow daily newspapers. GROWTH MEDIA consists of Bonnier’s digital media companies with a focus on global growth within the areas of publishing tools & leads, digital toys, gaming, and rights & moving images, via companies such as Mag+, Spoon, Toca Boca, Bonnier Gaming, SF Bio, Svensk Filmindustri, Sonet and Scandinavian Studios. The EBITA during 2012 for the business area was SEK 222 million (79). The reason for the significant improvement was the continued strong growth of SF Bio, which during 2012 had a record year with over 12 million cinema visits, an increase of 11 percent over the previous year. OTHER consists of common Bonnierwide activities and functions. This includes the costs for setting up Bonnier Solutions, a shared service center for Bonnier’s Nordic operations. These common activities affected Bonnier’s EBITA during 2012 by SEK -616 million (-645). Gearing ratio (net debt in relation to shareholders’ equity) amounted to 1.17 (0.98). The congolmerate’s liquidity, in the form of liquid assets and unused credit, continues to be good and at the end of December amounted to SEK 5.7 billion (6.2).

*

BONNIER ANNUAL REVIEW 2012  27

EBITA BY BUSINESS AREA SEK M 2012 2011 ∆ ∆ in % Books Nordic 147 379 −232 −61.2 % Books International 214 277 −63 −22.7 % Broadcasting 385 731 −346 −47.3 % Business to Business 80 56 24 42.9 % Magazines 142 164 −22 −13.4 % News Sweden 232 222 10 4.5 % Growth Media 222 79 143 181.0 % Other −616 −645 29 −4.5 % Bonnier AB total 806 1,263 −643 −36.2 % EBITA MARGIN BY BUSINESS AREA SEK M 2012 2011 ∆ ∆ in % Books Nordic 3.6 % 9.6 % −6.0 % −62.5 % Books International 9.7 % 12.0 % −2.3 % −19.3 % Broadcasting 4.7 % 9.1 % −4.4 % −48.3 % Business to Business 7.7 % 5.1 % 2.6 % 50.1 % Magazines 2.9 % 3.1 % −0.2 % −7.4 % News Sweden 4.9 % 4.1 % 0.8 % 18.3 % Growth Media 5.3 % 2.0 % 3.3 % 165.7 % Other n/a n/a n/a n/a Bonnier AB total 2.8 % 4.2 % −1.5 % −34.8 % EARNINGS SEK M 2012 2011 ∆ ∆ in % Net sales 29,176 29,819 −643 −2.2 % EBITA 806 1,263 −457 −36.2 % EBIT 81 1,019 −938 −92.1 % Net Financial Items −298 −355 57 −16.1 % Earnings before tax −217 664 −881 n/a Loss/Profit for the year −365 463 −828 n/a Earnings before GW, CG/CL & tax 555 950 −395 −41.6 % OPERATING CAPITAL SEK M Tangible & intangible fixed assets, excl. goodwill Working capital Other financial assets Goodwill Operating capital Net debt Shareholders' equity and minority interest Financing of operating capital

2012 2011 5,898 5,776 541 409 203 205 7,981 8,628 14,623 15,018 7,892 7,437 6,731 14,623

7,581 15,018

PHOTOS: PETER JÖNSSON

BOARD. The Bonnier Board of Directors.

Carl-Johan Bonnier, Chairman of the Board

Hans-Jacob Bonnier

Jeanette Bonnier

Pontus Bonnier

Bengt Braun

Lars Carlberg

Christian Caspar

Maria Curman

Claes Hallin

Arne Karlsson

Sara Stenman

Pernilla Ström

28  BONNIER ANNUAL REVIEW 2012

PHOTOS: PETER JÖNSSON

GROUP. Bonnier Executive Management.*

Jonas Bonnier, President & CEO, Bonnier AB

Jacob Dalborg, CEO, Bonnier Books Nordic

Bodil Ericsson Torp, VP for Communications and Human Development, Bonnier AB

Anders Eriksson, CEO, Bonnier Business Press

Gunilla Herlitz, CEO, Dagens Nyheter

Torsten Larsson, CEO, Nordic Broadcasting

Ulrika Saxon, CEO, Bonnier Growth Media

Frida Westerberg, VP Corporate Development and M&A, Bonnier AB

Göran Öhrn, CFO, Bonnier AB

Sara Öhrvall, VP Research & Development, Bonnier AB

BONNIER ANNUAL REVIEW 2012  29

* through Dec. 31, 2012

VALUES. The heart of Bonnier PASSION FOR MEDIA. We’re in media, adapting to

changing market conditions is our inherited strength, innovation is our focus. COMMITMENT OF A FAMILY COMPANY. We plan for generations, not for quarters. POWER OF THE INDIVIDUAL. We’re creating businesses and organizations around people, not the other way around. FREEDOM OF SPEECH. We believe that a public ongoing, pluralistic conversation is the foundation of a democracy.

BUSINESS IDEA. We create, select and refine a

world of knowledge and stories. VISION. To continuously reinvent media.

30  BONNIER ANNUAL REVIEW 2012

ORGANIZATION. Our structure BONNIER AB Books Nordic

Books International

Broadcasting

Business to Business

Magazines

News Sweden

Growth Media

Bonnier Books Finland

Bonnier Media Deutschland

C More

Bonnier Business Press

Bonnier Corporation

Bink

Bonnier Gaming

Bonnier Books Sweden

Bonnier Books New Markets

MTV Media

Børsen

Bonnier Publications

Bold Printing Group

Scandinavian Studios

Cappelen Damm

Bonnier Publishing

Nyhetsbolaget

Bonnier Tidskrifter

Dagens industri

Svensk Filmindustri

Dagens Nyheter

SF Bio

Expressen

Toca Boca

Sydsvenskan

Tools & Leads

TV4 Group

The Bonnier Annual Review Editor and Project Manager Bert Menninga Photo Editor and Assistant Project Manager Elin Eriksson Graphic Design and Layout Oktavilla Translations Bugli Company and Translator Scandinavia

BONNIER ANNUAL REVIEW 2012  31

Contributing writers, photographers and illustrators Magnus Bergström, Karl-Oskar Bjurenstedt, Klas Ekman, Oskar Hammarkrantz, Peter Jönsson, Andre Kolgun, Sima Korenivski, Olle Lidbom, Anders Malmsten, Elisabeth Moch and Fredrik Sjöshult The Cover The world according to Bonnier, with 175 companies in 17 countries

Printer Åtta.45 Paper ProfiSilk This report bears Svanen, the environmental seal of approval of the Nordic Ecolabel; it was printed on approved paper with an approved printer.

Bonnier AB 113 90 Stockholm Sweden tel. +46 8 736 40 00 [email protected] www.bonnier.com