SanomaWSOY's EBITA increased to EUR 39.5 (17.1) million during the first quarter 2002. Operating profit was EUR 14.0 (12.7) million. The comparable operating profit excluding recently acquired magazine operations increased 6%. Profit before extraordinary items increased to EUR 23.9 (18.1) million. In spite of higher interest expenses the Group's net financial income grew to EUR 9.8 (5.4) million thanks to gains on the sale of securities. The Group's net sales totalled EUR 555.0 (361.4) million.

KEY INDICATORS, EUR million

31.3.2002

31.3.2001

Change,%

31.12.2001

Net sales

555.0

361.4

53.5

1,730.0

Operating profit before

depreciation and decrease

in value

59.6

34.0

75.3

206.8

% of net sales

10.7

9.4

12.0

Operating profit before

amortisation

39.5

17.1

131.5

133.2

% of net sales

7.1

4.7

7.7

Operating profit

14.0

12.7

10.4

96.5

% of net sales

2.5

3.5

5.6

Profit before

extraordinary items

23.9

18.1

31.9

92.5

% of net sales

4.3

5.0

5.3

Balance sheet total

3,004.8

1,486.2

102.2

3,053.1

Gross investments

17.8

67.7

-73.8

1,473.9

% of net sales

3.2

18.7

85.2

Equity ratio, % *)

40.1

62.9

38.6

Equity ratio, %

32.9

62.4

31.6

Gearing, % *)

68.9

-19.4

75.7

Gearing, %

105.7

-18.8

114.7

Financial cost of

liabilities

16.1

2.9

448.8

31.3

Interest-bearing

liabilities

1,360.5

181.3

650.5

1,439.7

Interest-free liabilities

692.7

426.0

62.6

678.7

Securities, cash and bank

354.8

346.6

2.4

367.9

Personnel under employment

contract, average

18,472

13,614

35.7

15,129

Personnel, average

(full-time equivalents)

15,247

10,780

41.4

12,077


Earnings/share, EUR

0.07

0.05

39.0

0.35

Cash flow/share, EUR

0.53

0.29

82.9

1.26

Equity/share, EUR

5.98

5.54

7.8

5.87

Market capitalisation

1,823.7

1,704.1

7.0

1,510.4

*) Capital notes included in equity


Outlook

As estimated, the trend of advertising markets both in Finland and the Netherlands was weaker than in the previous year, but the market situation is expected to improve during autumn.

We estimate that SanomaWSOY's net sales and operating profit will grow significantly in 2002, as the net sales and operating profit generated at operations acquired from VNU will impact the consolidated figures for the full year instead of one quarter. The Group's net sales are expected to increase to EUR 2,400 million. If no unexpected changes occur in the economic situation, operating profit is expected to improve by one third instead of the previously estimated one fourth, partly as a result of divestment of assets and real estates.

SanomaWSOY intends to achieve an average operating profit of 9% during 2002 - 2005. The average targets for operating profit in 2002 - 2005 are 12.5% for Sanoma, 9% for Sanoma Magazines, 0% for SWelcom, 12.5% for WSOY and 5.5% for Rautakirja. Mid-term equity ratio target is 50%. Net sales

SanomaWSOY's net sales increased to EUR 555.0 (361.4) million during the first quarter 2002. The 53.5% sales growth was mainly attributable to the magazine operations acquired from VNU. The acquired operations were integrated in the Group at the beginning of October 2001 and the operations are presently organised as Sanoma Uitgevers, Sanoma Magazines Belgium, Sanoma Magazines International and Aldipress. Net sales improved in all divisions, with the exception of Sanoma. Growth was strongest at Rautakirja. The comparable net sales decreased about 1%. Result

The Group's EBITA (operating profit before amortisation of goodwill, consolidated goodwill and immaterial rights) increased to EUR 39.5 (17.1) million during the first quarter. Operating profit was EUR 14.0 (12.7) million. The comparable operating profit excluding recently acquired magazine operations increased 6%. Some of the Group's non-core assets were sold during the first quarter in accordance with the Group's objectives. Operating profit increased especially at Sanoma Magazines Finland, which sold its Blue Book unit in March. The Group's operating profit improved also as a result of the sale of real estates of SanomaWSOY Corporation. SWelcom's operating result improved to some extent driven by cost savings. While the operating results of Sanoma, WSOY and Rautakirja declined the operational results of WSOY and Rautakirja improved. The R&D expenditure booked as expenses totalled EUR 7.5 (5.9) million.

SanomaWSOY's profit before extraordinary items increased to EUR 23.9 (18.1) million. In spite of higher interest expenses the Group's net financial income grew by EUR 4.4 million thanks to gains on the sale of securities. Earnings per share amounted to EUR 0.07 (0.05). Investments

As planned, investments were evaluated carefully. The Group's investments totalled EUR 17.8 (67.7) million. The biggest investments related to the Sanomala printing unit. Market situation

Economic growth in the Euro area is expected to remain relatively slow in 2002. According to the forecast published by Nordea in May, GDP in the Euro area will increase 1.6%. Total production in Finland is estimated to grow 2.8%. Finnish consumers' confidence in the national economy remained unchanged from the level of March 2001 but improved from the year-end 2001. The daily consumer goods business grew nearly 5% in January - February.

According to a survey published by Gallup-Mainostieto, the volume of media advertising declined about 6% in Finland during January - March. Newspaper advertising decreased 8% and magazine advertising 7%. TV advertising grew slightly from the previous year. Radio advertising increased 11%, while outdoor advertising declined 19%, cinema advertising 11% and online media advertising 27%. Magazine advertising decreased also in the Netherlands but grew in Belgium and Hungary. Key events

In March, Sanoma Magazines Finland sold its directory-publishing unit Blue Book to Danish TDC Forlag A/S. The value of the deal was EUR 11.8 million.

In January 2002, the Board of Directors decided to issue warrants to management. The issue will comprise a maximum of 4,500,000 warrants, each entitling the holder to one SanomaWSOY Corporation Series B share. The warrants will be distributed in three stages, at the turn of 2001/2002, 2002/2003, and 2003/2004, and will be identified as warrants 2001A, 2001B, and 2001C respectively. A maximum of 1,500,000 warrants in each category will be issued. A total of some 700,000 warrants were distributed to 101 senior managers within the Group at the beginning of 2002; the remainder were held for later distribution at the discretion of the Board of Directors. The subscription price is the average price of SanomaWSOY's Series B share as quoted in November - December in each of the three years in question (2001, 2002, and 2003) plus 20%. The subscription period will begin three years from the issuing of warrants and will continue for three years thereafter. The subscription price for 2001A warrants was set at EUR 12.74. Balance sheet and financial position

The Group's consolidated balance sheet totalled EUR 3,004.8 (1,486.2) million due to acquisition of magazine operations in 2001. Shareholders' equity excluding capital notes totalled EUR 826.8 (766.7) million, or EUR 5.98 (5.54) per share. Equity ratio increased during the first quarter and was 40.1 (62.9); the positive impact of the capital notes on equity ratio was 7.2 percentage points.

Interest-bearing liabilities totalled EUR 1,360.5 (181.3) million. The book value of securities and cash totalled EUR 354.8 (346.6) million and their market value was EUR 390.9 (402.8) million. Net debt (interest-bearing liabilities less securities and cash) decreased during the first quarter due to strong operating cash flow and divestments of non-core assets, and was EUR 1,005.7 (-165.3) million.

The Group's net financial income rose to EUR 9.8 (5.4) million during the first quarter of 2002. Financial income was EUR 31.4 (16.2) million, and financial expenses were EUR 21.5 (10.8) million. The financial income was mainly attributable to the gains on the sale of securities, as a part of the investment portfolio was successfully realised after improved market conditions. Financial expenses mainly related to interest expenses (EUR 17.0 million). Shares

A total of 30,355 SanomaWSOY A-shares and 2,884,493 B-shares were traded in the first quarter of 2002.

The average trading price of A-share was EUR 12.67 and the price of B-share EUR 12.22 in January - March. The high of A-share was EUR 13.20 and the low EUR 11.51. The high of B-share was EUR 13.63 and the low EUR 10.75. The total value of shares traded on the stock exchange during the first quarter was EUR 35.6 (14.4) million.

SanomaWSOY's market capitalisation at the end of March less shares held by the Group was EUR 1,823.7 (1,704.1) million. The number of B-shares held by the Group was 7,187,276. The conversion period of convertible capital notes issued in 2001 began on 2 January 2002. No notes were converted in the first quarter of 2002. Personnel

SanomaWSOY's number of personnel grew significantly during 2001 as a result of acquisitions, and the average number of persons under employment contract during the first quarter of 2002 was 18,472 (13,614). Translated into full-time positions, this was equivalent to 15,247 (10,780). Events after first quarter

In April, Sanoma Magazines completed the sale of its shares in the business unit British European Associated Publishers Ltd. (BEAP) in the United Kingdom to a group of investors, including BEAP's operative management and ABN Amro Capital. The transaction value amounts to slightly over EUR 50 million. The result of the first quarter will impact the final price of the transaction. The shares were transferred to the buyer on 26 April.

SanomaWSOY Oyj's Annual General Meeting held in April 2002 approved the financial statements and the consolidated financial statements for 2001 and granted release from liability to the members of the Board of Directors and the Managing Director for the financial year 2001. The dividend paid for 2001 was EUR 0.51 per share. The record date for distribution of dividends was April 12, 2002 and the payment date April 19, 2002.

In accordance with the Articles of Association, the term of the Board of Directors elected in connection with the SanomaWSOY merger ended at the Annual General Meeting. The meeting decided to retain the number of Board members at 11, and re-elected Mr. Robert Castrén, Mr. Aatos Erkko, Ms. Jane Erkko, Ms. Marjukka af Heurlin, Mr. Paavo Hohti, Mr. Kyösti Järvinen, Mr. Esko Koivusalo, Mr. Robin Langenskiöld, Mr. Jaakko Rauramo, Ms. Rafaela Seppälä and Mr. Hannu Syrjänen. Mr. Jaakko Rauramo was elected Chairman and Mr. Paavo Hohti Vice Chairman of the Board. All the above-mentioned persons have announced that they will vacate their seats for a new election at the Annual General Meeting in spring 2003. SANOMA Newspaper publishing and printing

KEY INDICATORS

31.3.2002

31.3.2001

Change,%

31.12.2001

Net sales, EUR million

110.3

119.9

-8.0

459.3

Operating profit before

amortisation, EUR million

9.6

15.8

-39.0

49.9

% of net sales

8.7

13.2

10.9

Operating profit,

EUR million

7.9

14.2

-44.5

43.3

% of net sales

7.1

11.8

9.4

Operating profit excl.

associated companies,

EUR million

6.6

11.3

-41.3

35.1

% of net sales

6.0

9.4

7.6

Balance sheet total,

EUR million

506.1

494.0

2.5

490.7

Gross investments,

EUR million

7.3

37.4

-80.5

76.5

Personnel under employment

contract, average

4,919

4,796

2.6

4,929

Personnel, average

(full-time equivalents)

3,499

3,449

1.5

3,563

OPERATIONAL INDICATORS, 1.1 - 31.3

2002

2001

2000

HELSINGIN SANOMAT

Weekday circulation,

copies *)

436,009

446,972

Sunday circulation,

copies *)

507,011

517,860

Advertising volume

(column metres)

10,386

12,631

ILTA-SANOMAT

Circulation, copies *)

218,829

214,610

Advertising volume

(column metres)

1,486

1,503

TALOUSSANOMAT

Circulation, copies *)

31,192

25,162

Advertising volume

(column metres)

719

1,242


*) Audited circulation figures 1.1 - 31.12. Next audit period is 1.1 - 30.6.

Sanoma's net sales decreased by 8% in January - March to EUR 110.3 (119.9) million; the fall-off was slightly bigger than estimated and was attributable to the continuously declining trend in media advertising. According to a study by Gallup Mainostieto, the money used on newspaper advertising decreased 8%, and on job advertising 37%. Advertising sales accounted for 49% of Sanoma's total net sales. For Sanoma, the corresponding period in 2001 was still a period of strong growth.

Operating profit decreased by 44% to EUR 7.9 (14.2) million, mainly due to the weak trend of media advertising. Expenses declined 5% compared with the previous corresponding period, and operating profit exceeded the estimate at the beginning of the year, thanks to successful cost reduction initiatives. Also other operating income and share of the results of associated companies decreased slightly from the previous year. Operating profit included a EUR 1.3 (2.5) million share of Rautakirja's result. EBITA was EUR 9.6 (15.8) million.

Investments totalled EUR 7.3 (37.4) million. Most of the investments related to the Sanomala printing plant; implementation of the project progresses according to plan.

Net sales at the Helsingin Sanomat business unit decreased 9% from the comparison period, mainly due to continuously declining advertising revenue. The trend was weaker than anticipated particularly in job advertising, and the decrease in total advertising net sales was 14%, while the revenue from circulation sales increased over the previous year. The circulation trend of the newspaper developed according to plan, and remained in the first quarter unchanged from the previous year's level. Although the operating profit of the unit declined from the corresponding previous period, it exceeded the budget for the first quarter, driven by saving programs introduced in 2001.

Net sales at Ilta-Sanomat decreased 1%; operating profit declined but was better than estimated. The net sales decrease was attributable to the lower sales volume of news stand copies that fell by 2%. The figures for the comparison period were boosted by some significant news events at the beginning of 2001. On the other hand, advertising sales improved 7% in the first quarter of 2002. Ilta-Sanomat's market share of the news stand sales of tabloids was 60.7%.

Net sales at Kymen Lehtimedia decreased 13% from the previous year and its operating profit weakened slightly in spite of cost savings. Like in the previous year, the change was attributable to a decline in the sales of printed products to Russia; no new printing orders are anticipated from Russia due to the lower price level of local printing companies. Circulation revenue increased as a result of price increases implemented at the beginning of 2002, although the subscription volumes of daily newspapers decreased to some extent. Advertising revenue decreased 5%. In February, Kymen Lehtimedia acquired the operating assets of Kaupunkilehti Seiska.

Infosto's net sales decreased 12% but its operating profit improved clearly. The sales decrease and the improved operating profit were mainly the result of the decision to focus on the development of consumer-to-consumer products and services and to divest non-core operations. The circulation revenue at Keltainen Pörssi remained unchanged from the previous corresponding period as a result of price increases although the number of subscription copies declined to some extent. The advertising sales of the paper decreased 4% compared with the previous corresponding period.

Net sales at Startel Oy decreased 17% due to the declining trend of media advertising. In spite of achieved cost savings, its operating loss also increased. Taloussanomat's advertising sales decreased by more than one third. According to a survey published by Kansallinen Mediatutkimus, however, Taloussanomat was the only paper in its competitive category that managed to increase its readership. The net sales of Startel News Agency increased.

Esmerk continued to commit resources to expanding its activities in Central Europe. Most of the operations of the small offices closed were transferred to other units.

In April, Lehtikuva acquired 40% of Compad Oy and is today the sole shareholder of the company.

As anticipated, the advertising market during the first quarter failed to reach the good level of the early 2001. The declining trend of media advertising is expected to stop during the summer although an upturn is not in sight until autumn. For Sanoma, this means a need to adapt operations to the prevailing market situation. The top priority for the year is to improve long-term profitability by efficient cost management and by a leaner structure. In spite of the weakening trend in the first quarter, Sanoma is expected to achieve the same annual level of net sales as in 2001 and to improve its operating profit as a result of cost savings. SANOMA MAGAZINES Magazine publishing, press distribution

The financial comparison data for the first quarter of 2001 include the figures of Sanoma Magazines Finland only.

KEY INDICATORS

31.3.2002

31.3.2001

Change,%

31.12.2001

Net sales, EUR million

232.1

39.2

491.9

394.3

Operating profit before

amortisation, EUR million

28.4

1.2

2,219.2

60.9

% of net sales

12.2

3.1

15.4

Operating profit,

EUR million

7.7

1.0

641.7

41.7

% of net sales

3.3

2.7

10.6

Operating profit excl.

associated companies,

EUR million

4.3

-0.9

597.6

31.4

% of net sales

1.9

-2.2

8.0

Balance sheet total,

EUR million

1,764.5

64.9

2,617.6

1,766.0

Gross investments,

EUR million

3.0

1.0

214.8

1,314.8

Personnel under employment

contract, average

4,823

834

478.2

1,828

Personnel, average

(full-time equivalents)

4,326

804

438.3

1,707

OPERATIONAL INDICATORS, 1.1. - 31.3.

2002

2001

Number of copies sold

(press distribution /

Aldipress), thousands

30,254

31,521

Number of magazines

published

264

270

Magazine copies sold,

thousands

107,236

108,978

Number of advertising

pages sold

10,244

10,791


Sanoma Magazines' net sales totalled EUR 232.1 (39.2) million in the first quarter. Magazine advertising decreased in Finland and the Netherlands, and grew in Belgium and Hungary. Advertising revenue accounted for about 21% of Sanoma Magazines' net sales for the first quarter.

Operating profit for the first quarter was EUR 7.7 (1.0) million and EBITA amounted to EUR 28.4 (1.2) million. The divestment of the Blue Book unit boosted the operating profit, which was, however, adversely affected by the development trend at Sanoma Uitgevers.

Investments totalled EUR 3.0 (1.0) million, and the investments mostly related to the SAP implementation at Sanoma Uitgevers.

The Dutch unit Sanoma Uitgevers posted net sales of EUR 106.6 million for the first quarter. The development of the unit was weaker than estimated, mainly due to advertisers' lower investments, harsher competition in the Dutch magazine market and price competition faced from other media. However, Sanoma Uitgevers' profitability remained at a good level.

In February, Sanoma Uitgevers launched a new magazine, Prenza, whose publishing was discontinued after nine weeks because of its sluggish sales trend. Women's titles were successful in spite of decreasing advertising sales.

Operations of the MX press distribution system will be gradually transferred to the Dutch Postal Service. The project progresses according to plan.

Net sales at Aldipress totalled EUR 50.1 million in the first quarter. Construction of the new distribution centre in Duiven progresses on schedule and the centre will be opened in July.

Sanoma Magazines Finland posted net sales of EUR 40.3 (39.2) million. The growth was attributable to circulation revenue, while advertising revenue decreased because of the recession. Sanoma Magazines Finland held a share of 20% of the magazine advertising market, and the company retained its leading market position. The Blue Book directory operations were sold to Danish TDC Forlag A/S at the end of March. The transaction value totalled EUR 11.8 million.

Women's magazine Me Naiset was revamped in March; in April, Sanoma Magazines Finland launched a new title, Sport, for active women. In April, Sanoma Magazines Finland decided to discontinue the publishing of its Swedish magazine Sköna Dagar because of its low circulation volume.

Sanoma Magazines Belgium's net sales totalled EUR 36.0 million for the first quarter. The good performance of the unit was driven by the positive trend of advertising and circulation volumes. Magazine advertising in Belgium grew, and magazines increased their share of media advertising. The circulation volumes of the magazines published by the unit improved mainly boosted by the success of its top titles.

Sanoma Magazines International, which operated during the first quarter in Hungary, Slovakia, Czech Republic, UK, Romania and Croatia, posted net sales of EUR 25.0 million. Development was dynamic especially in Hungary as well as in Romania and Slovakia. Two new titles, Wellness and Best, were launched in Hungary, and one magazine, Story, in Croatia.

In February, Sanoma Magazines signed a Heads of Agreement to sell its British crossword puzzle publisher British European Associated Publishers Ltd to the operative management and a group of investors. The deal was finalised at the end of April.

Sanoma Magazines Zagreb was established in Croatia at the beginning of the year; initially, the unit publishes one title.

Sanoma Magazines is expected to reach net sales of around EUR one billion and its EBITA ratio is estimated to be 12 although the operating profit is expected to be slightly below 6% due to high goodwill amortisation. SWELCOM Electronic media

KEY INDICATORS

31.3.2002

31.3.2001

Change,%

31.12.2001

Net sales, EUR million

21.5

20.8

3.4

84.9

Operating profit before

amortisation, EUR million

-5.9

-6.3

5.8

-21.6

% of net sales

-27.6

-30.3

-25.5

Operating profit,

EUR million

-6.7

-7.0

4.8

-24.5

% of net sales

-31.0

-33.7

-28.8

Operating profit excl.

associated companies,

EUR million

-6.2

-6.8

9.2

-23.2

% of net sales

-28.7

-32.7

-27.4

Balance sheet total,

EUR million

125.3

125.2

0.1

152.4

Gross investments,

EUR million

2.2

2.7

-20.5

12.5

Personnel under employment

contract, average

417

411

1.5

441

Personnel, average

(full-time equivalents)

388

380

2.1

403

OPERATIONAL INDICATORS, 31.3.

2002

2001

Nelonen's share of Finnish

TV advertising, Jan.-March

26.1%

26.9%

Number of connected

households, thousands

223

212

Number of pay-TV

subscriptions, thousands

39

43

Number of broadband

Internet connections,

thousands

22

11


SWelcom's net sales increased 3% in January - March to EUR 21.5 (20.8) million. The growth was mainly driven by the good success of HTV's broadband Internet services. Advertising revenue accounted for 58% of net sales.

Operating loss decreased by 5% to EUR 6.7 (7.0) million, mainly thanks to the new operative focus of mobile services producer 2ndhead, and the adaptation of its business to the current level of operations. Nelonen's operating loss was also reduced to some extent. SWelcom's EBITA was EUR -5.9 (-6.3) million.

SWelcom's investments totalled EUR 2.2 (2.7) million. The investments mainly related to the construction of HTV's cable system and the development of the cable modem system.

Net sales at Nelonen fell slightly below the level of the previous corresponding period and totalled EUR 12.7 (13.0) million. Sales of advertising time amounted to EUR 12.4 (12.8) million. Operating result improved slightly, by 5.5%.

TV viewing time increased by 9 minutes, or 5%, on an average day in January - March compared with the previous corresponding period. Nelonen's daily coverage remained unchanged at 46% and its weekly coverage was 77 (76)%. In March, Nelonen exceeded the limit of 900,000 viewers for the first time, as the Finnish movie Levottomat (the Restless) attracted 905,000 spectators. Twenty per cent of all Finns aged over 10 years saw the film.

In February, Nelonen began broadcasting the Tuesday matches of the UEFA Champion League on its parallel digi-TV channel called Nelonen Plus. These matches were shown on the analogue channel as repeat broadcasts until the semi-finals. This practice was continued throughout spring 2002.

Helsinki Television's net sales increased 26% in January - March. Operating profit remained unchanged from the comparison period, due to investments in broadband operations. At the end of March, more than 222,800 households were connected to HTV's cable network; about 3,700 of these households had joined as customers in the first quarter. The target is to have 10,000 new customer households join the network in 2002. Nearly 22,000 customers had subscribed broadband Internet connections by the end of March.

Consumers' mobile portal 2ndhead.com will be closed during the summer as part of the refocusing of 2ndhead's operations and of its cost-reduction program. The portal will be changed into a mobile technology platform for services connected with SanomaWSOY Group's products.

The trend of the TV advertising markets in the first quarter was weaker than anticipated, and it will be difficult to catch up with the sales target during the rest of the year. This notwithstanding, SWelcom is expected to achieve a sales increase of 10% in 2002 and the operating result is expected to continue improving clearly. Nelonen will improve its profitability significantly boosted by the anticipated halving of the TV licence fee as from 1 July 2002. The strong demand for cable-TV services is also expected to continue. SWelcom will continue adapting its cost structure, and development resources will be focused according to the market situation. Achievement of targets will depend on the trend of the overall TV advertising market. WSOY Publishing, printing and calendar operations

KEY INDICATORS

31.3.2002

31.3.2001

Change,%

31.12.2001

Net sales, EUR million

42.2

42.1

0.2

211.0

Operating profit before

amortisation, EUR million

-1.0

0.0

22.1

% of net sales

-2.3

0.0

10.5

Operating profit,

EUR million

-2.1

-1.0

-112.4

18.1

% of net sales

-4.9

-2.3

8.6

Operating profit excl.

associated companies,

EUR million

-3.7

-4.1

9.5

9.5

% of net sales

-8.8

-9.7

4.5

Balance sheet total,

EUR million

265.3

267.2

-0.7

281.3

Gross investments,

EUR million

1.9

4.2

-53.7

14.7

Personnel under employment

contract, average

1,918

1,960

-2.2

1,971

Personnel, average

(full-time equivalents)

1,814

1,834

-1.1

1,863

OPERATIONAL INDICATORS, 1.1. - 31.3.

2002

2001

NUMBER OF NEW TITLES PUBLISHED

Books

152

144

Electronic products

34

25

NUMBER OF REPRINTS PUBLISHED

Books

349

403

Electronic products

62

51

Printed books,

million copies

5.9

5.6

Paper consumption, tonnes

3,111

3,112


WSOY's net sales for the first quarter remained unchanged from the previous year at EUR 42.2 (42.1) million. In the publishing sector, WSOY's textbooks and Genimap Oy's map products met with strong demand, while other book sales remained on the previous year's level because of the sluggish trend of bookstores at the beginning of the year.

The operating result was EUR -2.1 (-1.0) million. Operating result from own activities improved boosted by the good trend of the traditional book publishing and printing operations. Cost adaptation and structural measures introduced in the previous year especially in the new media sector had a positive impact on the result. The share of the result of associated company Rautakirja decreased to EUR 1.8 (3.4) million. EBITA was EUR -1.0 (0.0) million.

WSOY's investments totalled EUR 1.9 (4.2) million. The biggest single investment was the redemption of the 10% minority interest in Genimap Oy from MapInfo Corporation. Two four-colour offset printing machines were ordered as replacement investments during the first quarter, one for Ajasto Osakeyhtiö and one for WS Bookwell Oy.

Net sales at Publishing totalled EUR 30.3 (29.9) million for the first quarter, and operating profit was EUR -0.6 (-1.0) million. Sales of general literature decreased slightly but operating profit improved thanks to efficient cost management. Like other specialised stores, also bookstores suffered from the sluggish business trend in February - March. Book clubs retained their membership on the previous year's level at 200,000. General Literature established a new publishing unit, Johnny Kniga, which focuses on popular culture and intends to publish 30 - 50 new titles yearly. Weilin+Göös Oy, which publishes multi-volume books and yearbooks, increased its order book but net sales and operating profit fell below the level of the comparison period.

Sales of textbooks by Educational Materials were up from the previous year, and the volume of current orders for the school year 2002/2003 indicates a good success in spite of the harsher competitive situation. The Opit eLearning environment was well received at schools.

The market situation of IT literature in the new publishing environments continued to be weak, and Docendo Group's performance remained unprofitable in spite of a lighter cost structure. Everscreen Oy, which supplies eLearning concepts to businesses, fell clearly short of its sales targets in spite of an increase in sales compared with the previous year. It is anticipated that the business-to-business market will recover towards the end of the year. The sales and result of Genimap Oy, which supplies location data concepts, developed well in all customer categories.

Net sales from the Publishing operations increased 2% to EUR 15.9 (15.6) million. Operating profit remained unchanged at EUR 2.1 (2.2) million. The profitability of WS Bookwell Oy's exports improved boosted by the trend of currency exchange rates and by Lönnberg Oy's good competitiveness in terms of quality; the company was nominated the best Finnish advertising printing house already for the fifth year running.

The Calendar operation's net sales for the first quarter totalled EUR 1.7 (1.9) million, and its operating result, EUR -3.7 (-4.1) million, improved over the previous corresponding period, thanks to a lower cost level. The operational result for the year will improve compared with the previous year.

WSOY Group's annual result is generated during the latter part of the year due to the cyclical nature of operations. The performance for the first quarter indicates that net sales will grow about 5% as previously estimated, and operating profit will improve from the previous year. RAUTAKIRJA Kiosk operations, press distribution, bookstores, movie theatre operations, restaurant operations and eBusiness

KEY INDICATORS

31.3.2002

31.3.2001

Change,%

31.12.2001

Net sales, EUR million

176.0

164.6

6.9

696.5

Operating profit before

amortisation, EUR million

8.5

15.5

-45.1

46.5

% of net sales

4.8

9.4

6.7

Operating profit,

EUR million

7.5

14.6

-48.7

42.6

% of net sales

4.2

8.8

6.1

Operating profit excl.

associated companies,

EUR million

8.3

15.1

-45.0

44.0

% of net sales

4.7

9.2

6.3

Balance sheet total,

EUR million

405.8

375.7

8.0

412.7

Gross investments,

EUR million

3.1

8.9

-65.6

35.9

Personnel under employment

contract, average

6,321

5,530

14.3

5,877

Personnel, average

(full-time equivalents)

5,148

4,233

21.6

4,461

OPERATIONAL INDICATORS, 1.1. - 31.3. *)

2002

2001

Customer volume in kiosk

operations, thousands

19,784

20,222

Customer volume in bookstore

operations, thousands

1,545

1,565

Customer volume in movie

theatres, thousands

1,144

1,036

Number of copies sold (press

distribution), thousands

30,852

33,692

*) Own units in Finland


During the first quarter, Rautakirja's net sales improved 7% to EUR 176.0 (164.6) million. The comparable net sales increased 4%. Sales from kiosk, cinema and restaurant operations increased, while sales from press distribution and bookstores declined.

Operating profit decreased to EUR 7.5 (14.6) million, while the operational result improved almost 10%. Operating profit for the comparison period included a profit of EUR 7.8 million on the sale of the shares in Norwegian Narvesen. EBITA was EUR 8.5 (15.5) million. Earnings per share declined to EUR 0.94 (1.70).

Rautakirja's investments totalled EUR 3.1 (8.9) million. The largest single investment was the construction project of the multiplex movie theatre for UAB Vingio kino teatras in Lithuania.

Rautakirja's Annual General Meeting held in April 2002 decided to distribute a dividend for 2001 of EUR 2.30 per share both on A-shares and B-shares.

Net sales at Kiosk Operations improved 9% to EUR 88.1 million. This growth was generated in all units. Operating profit decreased 3% to EUR 3.0 million. The result at R-kiosks operating in Finland and Estonia improved from the previous year and the performance of Veikkausrasti decreased. Narvesen Baltija posted an unprofitable result.

Net sales in the Press Distribution business decreased slightly more than 1% to EUR 38.7 million. The unit's operating profit decreased by 16% to EUR 2.1 million. The result for the period was burdened by start-up investments in connection with the May 2002 launch of press distribution operations in Latvia. Profit from Finnish operations declined somewhat relative to the previous year, while the Estonian performance improved.

Net sales at Bookstore Business decreased 4% to EUR 30.8 million. The unit's operating profit decreased to EUR 0.5 million. Operating result declined in Finland, and improved in Estonia but did not yet reach profitability in Estonian market. Suomalainen Kirjakauppa's sales decreased, mainly in juvenile books and cd-roms.

Net sales at Movie Theatre Operations increased by 24% to EUR 14.6 million. The sales growth is mainly attributable to the good movie offering, which is expected to continue this year. The Movie Theatre Operations' operating profit grew even faster than net sales and amounted to EUR 2.0 million. The operating profit grew in Finland, Estonia and Latvia. The Lithuanian operations were integrated in the unit in September 2001. The foundation stone of the multiplex built for Finnkino's subsidiary UAB Vingio kino teatras was laid in Vilnius in March. The complex will be taken into use towards the end of 2002. The total investment of the multiplex is EUR 8.4 million. A letter of intent was signed at the end of March between Finnkino and YIT Rakennus Oy for leasing of facilities for six movie theatres in a new multiplex complex to be built in downtown Lahti. The multiplex will open its doors at the year-end 2003/2004.

Net sales at Restaurant Operations grew 28% to EUR 10.7 million, mainly as a result of the takeover of Motorest units in 2001. By contrast, net sales at Pizza Hut restaurants declined. The operating result from Restaurant Operations improved to EUR -0.6 million. The highway service areas and Pizza Hut restaurants improved their performances.

The eBusiness recorded net sales of EUR 0.3 million and its operating result was EUR -0.5 million. The eBusiness projects did not turn into concrete business according to the anticipated schedule, and the unit completed the statutory cooperation negotiations with personnel. The eBusiness operation will be phased out, and other business units will assume some of its activities. Ferete will continue developing and operating the Dose concept and shops, and will participate in various eBusiness projects within Rautakirja.

Rautakirja's net sales are estimated to grow about 5% in 2002. The result is expected to fall below the record performance of 2001, which included a profit of EUR 7.8 million on the sale of Narvesen's shares. The operational result will remain largely unchanged from the previous year's level.

Helsinki, 14 May 2002

Board of Directors

SanomaWSOY Corporation

INTERIM REPORT TABLES

Figures are unaudited.

GROUP INCOME STATEMENT

1-3

1-3

Change,%

1-12

EUR million

2002

2001

2001

NET SALES

555.0

361.4

53.5

1,730.0

Increase (+) / decrease (-)

in inventories of finished

goods and work in progress

4.7

5.4

-12.0

0.7

Production for own use

0.0

0.0

-38.9

0.0

Other operating income

25.2

15.8

60.0

44.5

Share of result of

associated companies

1.0

-0.6

0.0

5.5

Materials and services

261.5

169.1

54.6

786.0

Personnel expenses

143.5

99.9

43.6

433.8

Depreciation and decrease in value

45.6

21.3

114.1

110.3

Other operating expenses

121.4

79.0

53.7

354.1

OPERATING PROFIT

14.0

12.7

10.4

96.5

Financial income

31.4

16.2

93.4

42.9

Financial expenses

21.5

10.8

98.9

46.9

PROFIT BEFORE

EXTRAORDINARY ITEMS

23.9

18.1

31.9

92.5

Extraordinary items

PROFIT AFTER

EXTRAORDINARY ITEMS

23.9

18.1

31.9

92.5

Direct taxes

(profit-related)

-12.8

-6.6

95.3

-31.0

Minority interests

-1.1

-4.4

-74.4

-13.7

PROFIT FOR THE PERIOD

9.9

7.1

39.0

47.8


GROUP BALANCE SHEET

EUR million

31.3.2002

31.3.2001

Change,%

31.12.2001

ASSETS

NON-CURRENT ASSETS

Intangible assets

101.2

48.0

110.9

101.2

Goodwill

1,287.8

121.1

963.8

1,311.1

Tangible assets

501.3

420.7

19.2

509.6

Investments

263.8

247.2

6.7

266.3

NON-CURRENT ASSETS, TOTAL

2,154.2

837.0

157.4

2,188.2

CURRENT ASSETS

Inventories

124.7

104.5

19.4

122.6

Long-term receivables

60.0

43.5

37.9

63.3

Short-term receivables

311.1

154.5

101.3

311.0

Securities

267.7

305.6

-12.4

282.6

Cash and bank

87.0

41.0

112.4

85.4

CURRENT ASSETS, TOTAL

850.6

649.1

31.0

864.8

ASSETS, TOTAL

3,004.8

1,486.2

102.2

3,053.1

SHAREHOLDERS' EQUITY AND LIABILITIES

SHAREHOLDERS' EQUITY

Share capital

62.6

62.6

62.6

Premium fund

16.1

16.1

16.1

Other funds

364.4

364.1

0.1

364.4

Retained earnings

373.8

316.8

18.0

321.5

Profit for the period

9.9

7.1

39.0

47.8

Capital notes

207.3

6.9

207.3

SHAREHOLDERS' EQUITY, TOTAL

1,034.1

773.6

33.7

1,019.7

MINORITY INTEREST

124.8

112.2

11.3

122.3

STATUTORY PROVISIONS

6.5

2.3

178.3

8.1

LIABILITIES

Deferred tax liability

35.3

37.1

-4.8

36.6

Long-term liabilities

912.4

81.9

922.7

Current liabilities

891.7

479.1

86.1

943.7

SHAREHOLDERS' EQUITY AND

LIABILITIES, TOTAL

3,004.8

1,486.2

102.2

3,053.1


GROUP CASH FLOW STATEMENT

1-3

1-3

Change,%

1-12

EUR million

2002

2001

2001

Operating profit

14.0

12.7

10.4

96.5

Adjustments to

operating profit

25.2

12.7

99.2

91.6

Change in working capital

32.3

23.4

37.9

11.4

Cash flow from operations

before financial items

and taxes

71.5

48.8

46.7

199.4


Financial items and taxes

1.2

-9.0

-113.4

28.0

Cash flow from operations

72.7

39.8

82.9

174.4

Cash flow from investments

2.3

-21.8

-110.7

-1,201.3

Cash flow before financing

75.0

17.9

318.6

-1,027.0

Cash flow from financing

-85.7

10.6

-907.1

1,087.8

CHANGE IN LIQUIDITIES

ACCORDING TO THE CASH FLOW

STATEMENT

-10.6

28.5

-137.2

60.8

Exchange rate differences

under liquidities

-2.5

1.1

-323.4

-9.8

Net increase (+)/

decrease (-) in liquidities

-13.1

29.7

-144.3

51.0

Liquidities according to the

balance sheet at Jan. 1

367.9

316.9

16.1

316.9

Liquidities according to the

balance sheet at March 31 /

Dec. 31

354.8

346.6

2.4

367.9


DEPRECIATION AND DECREASE IN VALUE

1-3

1-3

Change,%

1-12

EUR million

2002

2001

2001

DEPRECIATION ACCORDING TO PLAN

Goodwill and

immaterial rights

25.5

4.4

484.2

36.7

Others

20.1

16.9

18.7

72.4

DECREASE IN VALUE OF

NON-CURRENT ASSETS

1.2

TOTAL

45.6

21.3

114.1

110.3

PERSONNEL, AVERAGE *)

1-3

1-3

Change,%

1-12

2002

2001

2001

Sanoma

3,499

3,449

1.5

3,563

Sanoma Magazines

4,326

804

438.3

1,707

Swelcom

388

380

2.1

403

WSOY

1,814

1,834

-1.1

1,863

Rautakirja

5,148

4,233

21.6

4,461

Other companies **)

73

81

-10.5

80

TOTAL

15,247

10,780

41.4

12,077


*) Stated as average number of full-time salaried personnel

**) Parent Company SanomaWSOY Corporation and real estate and investment companies

SHAREHOLDERS' EQUITY

EUR million

31.3.2002

31.3.2001

31.12.2001

Share capital at Jan. 1

62.6

62.6

62.6

SHARE CAPITAL

62.6

62.6

62.6

Premium fund at Jan. 1

16.1

16.1

16.1

PREMIUM FUND

16.1

16.1

16.1

Other funds at Jan. 1

364.4

364.1

364.1

Change

0.3

OTHER FUNDS

364.4

364.1

364.4

Profit brought forward at Jan. 1

369.3

379.9

379.9

Dividends

-65.0

-65.0

Change in translation difference

3.8

1.5

5.9

HTV connection fees

0.5

0.3

1.4

Other changes

0.2

0.1

-0.7

PROFIT BROUGHT FORWARD

373.8

316.8

321.5

PROFIT FOR THE PERIOD

9.9

7.1

47.8

Capital notes at Jan. 1

207.3

7.3

7.3

Changes

-0.4

200.1

CAPITAL NOTES

207.3

6.9

207.3

TOTAL SHAREHOLDERS' EQUITY

1,034.1

773.6

1,019.7


CONTINGENCIES AND PLEDGED ASSETS

EUR million

31.3.2002

31.3.2001

Change,%

31.12.2001

DEBTS WITH COLLATERAL CONSISTING OF REAL ESTATE AND SHARES

Pension loans

17.4

24.1

-27.8

21.7

Loans from financial

institutions

6.2

7.6

-18.6

6.7

Other loans

15.5

15.3

1.6

13.3

Mortgages, real estate,

total

21.9

21.9

21.9

Mortgages, movable property,

total

2.8

3.1

-9.5

2.9

Pledged securities, total

54.3

54.3

0.0

54.3

OTHER CONTINGENCIES FOR OWN COMMITMENTS

Mortgaged bearer bonds

0.9

0.9

0.9

Corporate mortgages

4.7

4.5

5.2

4.7

Book value of pledged securities

4.5

17.9

-74.9

10.7

Deposits

1.1

1.0

12.1

1.1

Guarantees

32.1

2.9

27.6

TOTAL

43.3

27.2

59.6

45.1

CONTINGENCIES GIVEN ON BEHALF OF ASSOCIATED COMPANIES

Guarantees

8.9

1.0

768.2

8.9

CONTINGENCIES GIVEN ON BEHALF OF OTHER COMPANIES

Guarantees

24.5

0.8

24.5

OTHER CONTINGENCIES

Leasing liabilities

54.7

3.7

45.2

Interest on capital notes

2.6

1.8

45.7

2.4

Pension liabilities

0.6

Repurchase liabilities

1.3

3.3

-62.1

1.3

Other liabilities

14.2

13.8

2.6

19.3

OTHER CONTINGENCIES, TOTAL

72.8

23.3

212.5

68.2

ALL LIABILITIES, TOTAL

228.6

131.6

73.7

225.9


NOMINAL VALUE OF THE GROUP'S OPEN DERIVATIVE CONTRACTS

EUR million

31.3.2002

31.3.2001

Change,%

31.12.2001

INTEREST RATE DERIVATIVES

Forward contracts

200.0

200.0

Options

Purchased

480.0

480.0

Written

480.0

480.0

Interest rate swaps

400.0

400.0

TOTAL

1,560.0

1,560.0

CURRENCY DERIVATIVES

Forward contracts

25.7

50.9

-49.6

36.2

Options

Purchased

49.9

TOTAL

75.6

50.9

48.4

36.2

SHARE DERIVATIVES

Forward contracts

12.0

7.0

70.8

32.9

TOTAL

12.0

7.0

70.8

32.9

TOTAL

1,647.5

57.9

1,629.1

MARKET VALUE OF THE GROUP'S OPEN DERIVATIVE CONTRACTS

EUR million

31.3.2002

31.3.2001

Change,%

31.12.2001

INTEREST RATE DERIVATIVES

Forward contracts

0.3

-0.1

Options

Purchased

1.7

1.5

Written

-0.4

-1.1

Interest rate swaps

4.5

1.1

TOTAL

6.2

1.4

CURRENCY DERIVATIVES

Forward contracts

0.1

0.5

-70.9

-0.2

Options

Purchased

0.0

TOTAL

0.1

0.5

-70.9

-0.2

SHARE DERIVATIVES

Forward contracts

0.5

-0.1

0.2

TOTAL

0.5

-0.1

0.2

TOTAL

6.8

0.4

1.4

GROUP INCOME STATEMENT BY QUARTER

1-3

1-3

4-6

7-9

10-12

1-12

EUR million

2002

2001

2001

2001

2001

2001

NET SALES

555.0

361.4

362.2

353.8

652.6

1,730.0

Increase (+) / decrease (-)

in inventories of finished

goods and work in progress

4.7

5.4

0.8

0.3

-5.8

0.7

Production for own use

0.0

0.0

0.0

0.0

0.0

0.0

Other operating income

25.2

15.8

9.4

7.2

12.0

44.5

Share of result of associated companies

1.0

-0.6

4.8

-0.2

1.5

5.5

Materials and services

261.5

169.1

161.6

162.7

292.5

786.0

Personnel expenses

143.5

99.9

96.7

93.0

144.2

433.8

Depreciation and decrease

in value

45.6

21.3

21.9

23.0

44.1

110.3

Other operating expenses

121.4

79.0

79.5

67.0

128.7

354.1

OPERATING PROFIT

14.0

12.7

17.5

15.4

50.9

96.5

Financial income

31.4

16.2

14.1

7.4

5.3

42.9

Financial expenses

21.5

10.8

3.9

23.5

8.6

46.9

PROFIT BEFORE

EXTRAORDINARY ITEMS

23.9

18.1

27.6

-0.8

47.6

92.5

Extraordinary items

0.0

0.0

0.0

0.0

0.0

0.0

PROFIT AFTER

EXTRAORDINARY ITEMS

23.9

18.1

27.6

-0.8

47.6

92.5

Direct taxes (profit-related)

-12.8

-6.6

-6.3

-2.2

-16.0

-31.0

Minority interests

-1.1

-4.4

-1.5

-2.2

-5.6

-13.7

PROFIT FOR THE PERIOD

9.9

7.1

19.8

-5.1

26.0

47.8


NET SALES BY BUSINESS AREA

1-3

1-3

4-6

7-9

10-12

1-12

EUR million

2002

2001

2001

2001

2001

2001

SANOMA

Newspaper publishing

and printing

110.3

119.9

118.3

108.5

112.6

459.3

TOTAL

110.3

119.9

118.3

108.5

112.6

459.3

SANOMA MAGAZINES

Magazine publishing

207.9

39.2

41.7

37.7

254.6

373.3

Press distribution

50.1

0.0

0.0

0.0

52.8

52.8

Intracompany transactions

-25.9

0.0

0.0

0.0

-31.7

-31.7

TOTAL

232.1

39.2

41.7

37.7

275.6

394.3

SWELCOM

Electronic media

21.5

20.8

21.6

18.0

24.5

84.9

TOTAL

21.5

20.8

21.6

18.0

24.5

84.9

WSOY

Publishing

30.3

29.9

38.3

29.0

34.7

131.8

Printing

15.9

15.6

14.9

15.6

16.1

62.2

Calendar operations

1.7

1.9

2.9

12.5

18.4

35.8

Others

0.9

1.0

1.0

0.9

1.1

3.9

Intracompany transactions

-6.6

-6.3

-5.1

-6.1

-5.3

-22.8

TOTAL

42.2

42.1

52.0

51.9

65.0

211.0

RAUTAKIRJA

Kiosk operations

88.1

80.7

87.8

88.2

103.1

359.8

Press distribution

38.7

39.3

41.6

41.5

42.7

165.1

Bookstores

30.8

32.1

16.6

25.1

40.2

113.9

Movie theatre operations

14.6

11.8

8.4

11.3

16.0

47.6

Restaurant operations

10.7

8.3

11.0

12.3

10.8

42.4

E-business

0.3

0.0

0.0

0.0

0.3

0.4

Others

0.0

0.0

0.0

0.0

0.0

0.0

Intracompany transactions

-7.2

-7.7

-8.6

-7.9

-8.6

-32.7

TOTAL

176.0

164.6

156.9

170.4

204.6

696.5

Intragroup transactions

-27.1

-25.2

-28.3

-32.7

-29.8

-115.9

TOTAL

555.0

361.4

362.2

353.8

652.6

1,730.0


OPERATING PROFIT BY BUSINESS AREA

1-3

1-3

4-6

7-9

10-12

1-12

EUR million

2002

2001

2001

2001

2001

2001

SANOMA

Newspaper publishing and printing *)

7.9

14.2

7.3

8.9

12.9

43.3

TOTAL

7.9

14.2

7.3

8.9

12.9

43.3

SANOMA MAGAZINES

Magazine publishing

9.0

1.0

6.2

3.5

30.5

41.3

Press distribution

-1.3

0.0

0.0

0.0

0.4

0.4

Intracompany eliminations

0.0

0.0

0.0

0.0

0.0

0.0

TOTAL

7.7

1.0

6.2

3.5

30.9

41.7

SWELCOM

Electronic media

-6.7

-7.0

-5.8

-6.0

-5.6

-24.5

TOTAL

-6.7

-7.0

-5.8

-6.0

-5.6

-24.5

WSOY

Publishing

-0.6

-1.0

7.1

0.8

-0.5

6.3

Printing

2.1

2.2

1.6

1.7

2.0

7.4

Calendar operations

-3.7

-4.1

-3.5

4.1

3.8

0.3

Others *)

1.4

2.6

-0.1

1.8

2.0

6.4

Intracompany eliminations

-1.2

-0.7

0.9

-1.0

-1.5

-2.3

TOTAL

-2.1

-1.0

6.0

7.3

5.7

18.1

RAUTAKIRJA

Kiosk operations

3.0

3.1

3.2

5.0

3.5

14.8

Press distribution

2.1

2.5

2.8

2.8

2.2

10.3

Bookstores

0.5

0.8

-1.9

0.2

7.6

6.7

Movie theatre operations

2.0

0.8

-0.5

0.0

1.8

2.0

Restaurant operations

-0.6

-0.7

-0.2

0.6

-0.8

-1.1

E-business

-0.5

-0.3

-0.4

-0.4

-0.6

-1.7

Others

1.0

8.5

0.9

0.9

1.3

11.5

Intracompany eliminations

0.0

0.0

0.0

0.0

0.0

0.0

TOTAL

7.5

14.6

3.9

9.1

15.1

42.6

Other companies **)

-3.8

-4.7

-1.1

-4.8

-5.1

-15.8

Intragroup eliminations

3.5

-4.4

1.0

-2.6

-3.0

-8.9

TOTAL

14.0

12.7

17.5

15.4

50.9

96.5


*) Includes a share of Rautakirja's results

**) Parent company SanomaWSOY Corporation and real estate and investment companies

SANOMAWSOY CORPORATION


Raija Kariola
Vice President
Investor Relations and Group Communications


DISTRIBUTION
Helsinki Exchanges, Principal media