Rautakirja's (Sanoma Trade) result 1.1.-31.12.2011

The Trade segment includes Sanoma's kiosk operations and trade services in Finland, Estonia and Lithuania.

- Customer volumes and sales of Finnish kiosks showed positive development for the second consecutive quarter and the operational result improved significantly.
- The Finnish press distribution unit Lehtipiste has managed to keep the sales of single copies of magazines at the comparable year's level contrary to the trend in many other countries.
- Despite the continued challenging economic conditions in the Baltic countries, Trade's Estonian and Lithuanian businesses improved their performance significantly.
- Bookstore operations in Finland were divested at the end of September and the kiosk and press distribution operations in Latvia in October. The sold operations were deconsolidated as of 1 October.

Fourth quarter

In October-December, Trade's net sales decreased by 37.9%, due to the divestment of operations. Net sales adjusted for structural changes increased by 3.2%.

Net sales from kiosk operations were down by 8.2% in the fourth quarter due to the divestment of the Latvian, Russian and Romanian operations. The growth both in net sales and in the number of customers in the comparable part of the kiosk chain in Finland continued, mainly as the result of a major optimisation of the kiosk network and continued performance uplift measures during the past three quarters. Net sales grew in Lithuania and were at the comparable quarter's level in Estonia.

Trade services' net sales decreased by 16.9% due to the divestment of the Latvian, Russian and Romanian operations. Net sales increased in Finland and Estonia.

Bookstore operations in Finland, divested at the end of September, were no longer included in Trade's figures in the fourth quarter.

Movie operations, divested at the end of April, were no longer included in Trade's figures in the second half of 2011.

Trade's operating profit excluding non-recurring items decreased by 18.7% in October-December due to the divestment of bookstores, where Christmas sales are important. The operational result in kiosk operations improved significantly as a result of increased customer volumes, several efficiency measures and divestments of loss-making operations. The average margin per customer increased, improving the result in Finnish kiosk operations. The result improved also in trade services. Trade's operating profit in the fourth quarter included EUR 5.3 million (2010: EUR -2.6 million) of non-recurring items, related to the sales gain of the divested operations in Latvia.

2011

In January-December, Trade's net sales decreased by 17.8% due to the divestments of the Finnish and Baltic movie operations in April, the Romanian kiosk and press distribution operations in April, the remaining Russian kiosk operations in April, the Finnish bookstore operations in September and the Latvian kiosk and press distribution operations in October. Net sales adjusted for structural changes increased by 0.1%.

In 2011, Trade's operating profit excluding non-recurring items decreased by 1.4%. The positive effects of divesting loss-making operations as well as the improved performance of kiosk operations and trade services compensated almost fully for the loss of result from the divested movie and bookstore operations. The non-recurring items included in Trade's operating profit totalled EUR 30.4 million (2010: EUR -3.6 million) and consisted mainly of sales gains and losses related to divestments.

Trade's investments in tangible and intangible assets totalled EUR 32.4 million (2010: EUR 29.7 million), and focused mainly on concept development in kiosks, ICT projects and the renewal of Finnkino's long-term rental agreements, which alone accounted for close to one half of the investments. There were no material acquisitions in 2011.

Sanoma Financial Statement Release 2011