Stock Exchange Release 14/6/2012  9:00

At Sanoma's Capital Markets Day, starting today at 12:30 at Hotel Kämp in Helsinki, Harri-Pekka Kaukonen, President and CEO, will speak about the business environment, Sanoma's strategy, position and the need for new business models as well as the on-going transformation.

"We have now finalised the first phase in our transformation journey. During the past 18 months we have set the strategy focusing on consumer media and learning, executed the major portfolio changes to support our strategy and made the necessary changes in the management of the Group. Now we will focus on executing our strategy and fine-tuning our operations to enable the next phases of the transformation. Our success will continue to be built on our strong local markets positions and our competencies, where we differ ourselves from our peers through our deeper and broader consumer media and learning insights and portfolios. We are at the forefront and well positioned in the gradual transformation of the industry towards multi-channel and cross-media landscape", says Harri-Pekka Kaukonen.

At the meeting, Sanoma reiterates its outlook for 2012, financial targets for the long-term and dividend policy.

Outlook for 2012 (reconfirmed)

In 2012, Sanoma expects its net sales to grow slightly, mostly due to the acquired SBS operations in the Netherlands and Belgium. Operating profit margin, excluding non-recurring items, is estimated to be around 10% of net sales. Earnings per share excluding non-recurring items are estimated to grow.

Sanoma's net sales and result are affected by the underlying environment, particularly by the development of advertising markets in the Group's countries of operation. The 2012 outlook is based on the assumption that the advertising markets in the Group's main operating countries will vary from stable to slightly decreasing, as the economic uncertainty continues.

Long-term financial targets (reconfirmed)

Sanoma's long-term financial targets are to grow net sales faster than the growth of GDP in our main operating countries and to achieve an EBIT margin excluding non-recurring items of 12%. We will target for a net debt to EBITDA ratio below 3.5, an equity ratio within 35% to 45%, gearing of less than 100%, and capital expenditures to be annually less than EUR 100 million.

Dividend policy (reconfirmed)

Sanoma conducts an active dividend policy and primarily pays out over half of Group result excluding non-recurring items for the period in dividends.

At the meeting, Sanoma also provides estimates that the combined net sales of the acquired Dutch SBS TV and TV magazines operations for 2012 will be slightly below last year (2011 pro forma: EUR 322 million) and that the EBIT excluding non-recurring items and purchase price allocation amortizations to be over 20% of the combined net sales.

Other featured Sanoma speakers at the Capital Markets Day are Anu Nissinen, CEO Sanoma Media Finland, Dick Molman, CEO Sanoma Media Netherlands, Pekka Soini, CEO Sanoma News, Jacques Eijkens, CEO Sanoma Learning and Kim Ignatius, CFO.

Sanoma Corporation

Kim Ignatius
Chief Financial Officer

Additional information: Sanoma's Investor Relations, Martti Yrjö-Koskinen, tel. +358 40 684 4643 or

Sanoma inspires, informs and connects. As a diversified media group, we bring information, experiences, education and entertainment to millions of people every day. We make sure that quality content and interesting products and services are easily available and meet the demands of our readers, viewers and listeners. We offer a challenging and interesting working environment for around 11,000 people in over 20 countries throughout Europe. In 2011, the Group's restated net sales totalled EUR 2.4 billion.