1. INTERNATIONAL A Publisher’s Internet Strategy Bert Wiggers Director New Media Sanoma Magazines International

2. INTERNATIONAL 2 Division of SanomaWSOY * Personnel under employment contract, average. Net sales M€ 1,219 EBIT M€ 132 Personnel 5,584 Net sales M€ 457 EBIT M€ 63 Personnel 2,672 Net sales M€ 684 EBIT M€ 51 Personnel 7,214 Net sales M€ 132 EBIT M€ 13 Personnel 437 Net sales M€ 309 EBIT M€ 48 Personnel 2,455 SanomaWSOY SanomaWSOY Education and Books Sanoma Magazines Rautakirja Sanoma SWelcom Net sales M€ 2,742 EBIT M€ 293 Personnel 18,434 *

3. INTERNATIONAL 3 Sanoma Magazines, some facts > 50 million people read our magazines monthly Sales > € 1,2 billion (2006) 4th European consumers magazines publisher Market leader in Finland, Belgium, Hungary, the Netherlands, Bulgaria, Russia, Czech Republic Operate in 13 countries with 6 editions of National Geographic; 8 editions of Story; 10 editions of Cosmopolitan (including Kazakhstan) We sold 442,632,000 copies in 2005 Serious online positions and ambitions Online sales now 8%, growing double digits The Russian Cosmopolitan is the biggest edition outside of the US. 5,500 people on the payroll

4. INTERNATIONAL 4 Our leading magazines titles FIN 265,650 320,500 RUS 980,000 240,000 NL BEL HUN 233,045 221.439 512,160 337,880 356,500 295,000

5. INTERNATIONAL 5 Go East, Young Man, Go East! CROATIASERBIA SLOVENIA THE UKRAINE BULGARIA RUSSIA 2001 2004 2004 2005 2005 2006

6. INTERNATIONAL 6 Belgium # 1 market position Sanoma Magazines Belgium GDP growth 2.9% Finland # 1 market position Sanoma Magazines Finland GDP growth 4.3% Hungary # 1 market position Sanoma Budapest Kiadói Hearst Sanoma Press Pub. GDP growth 4.7% Croatia # 2 market position Adria Media Zagreb GDP growth 7.1% The Netherlands # 1 market position Sanoma Uitgevers Sanoma Magazines Int. GDP growth 4.5% Bulgaria # 1 market position Sanoma Bliasak Bulgaria GDP growth 7.8% Romania # 4 market position Sanoma Hearst Romania GDP growth 8.2% Czech Republic leading market position Sanoma Magazines Praha GDP growth 7.2% Sanoma Magazines’ chosen markets Serbia #2 market position Adria Media Serbia GDP growth 7.8% Russia # 1 market position IMH Group GDP growth 8.2% GDP growth 9.1% Slovakia trade magazines only Sanoma Mag. Slovakia GDP growth 8.4% Slovenia #2 market position Adria Media Ljubljana GDP growth 6.2% Sources: EIU GDP growth is Nominal GDP growth, purchasing power parity 2007 (FC) compared to 2006 Ukraine # 4 market position

7. INTERNATIONAL 7 Preferred license partner The best known global brands: Cosmopolitan - Playboy - Elle FHM - Maxim - Disney - Auto Bild National Geographic Czech Rep. Hungary Romania Croatia Russia Bulgaria Elle Serbia and Elle Bulgaria The Russian edition of Cosmopolitan is the biggest outside of the US; we also publish Cosmo in The Netherlands, Finland, Hungary and Romania Finland The Netherlands

8. INTERNATIONAL 8 Transferring Concepts - own titles Ukraine Bulgaria Croatia Serbia Czech Republic Hungary Romania Belgium The Netherlands

9. INTERNATIONAL 9 Where are we, on internet? Market leader (as ‘internet publisher’) in the Netherlands (ilse media) and Hungary (Sanoma Budapest) Strong position in Finland All 13 SMI countries have POP sites (=marketing) Some ‘real sites’ in some countries A lot of ambition to realize a number 1 position in more countries –Acquisitions in the pipeline –More internet staff to be hired

10. INTERNATIONAL 10

11. INTERNATIONAL 11 West grows, East booms Source: PWC internet outlook 2007-2011

12. INTERNATIONAL 12 3 types of sites, businesswise Point of Presence (POP) brand extension Subscriptions, more info for readers, etc etc Not making a lot of money Sites with a business model Run as business units, making profit Some community sites (dedicated) Sites without a business model Fun sites Communication sites A lot of community sites

13. INTERNATIONAL 13 Strategy: simple approach A lot of ways to analyze internet sites Horizontal vs vertical Click away vs destiny sites Editorial vs user generated content Content vs services Web 1.0 vs 2.0 Social networks vs editorial broadcasting... The right way: follow the money Forget magazine-driven visions Don’t think of existing business focuses within your company Follow the user’s clicktrails (and wallets) Banners&buttons are important, but clicks generate most of the revenues

14. INTERNATIONAL 14 Internet value chain content & services impressionimpression clickthruclickthru salesale leadlead €0,015€0,015 €0,12€0,12 €1,15€1,15 €20,00€20,00 €0,03€0,03 €1,50€1,50 €300€300 €3000€3000

15. INTERNATIONAL 15 And in Western Europe... Saturated magazine markets Magazines are competing in time of the consumer with TV, newspapers, radio, internet, mobile phones, events... Every other medium is a replacement in time A different approach is needed...

16. INTERNATIONAL 16 Rules of the games MagazinesInternet Sites brandsusers audiencetraffic target groupstarget interests reports per monthstats per hour distribution is keyone click away

17. INTERNATIONAL 17 questions