Annual Review 2020
Contents
Financial highlights 2020
Key investment highlights
Sanoma Sustainability Strategy 4
Sanoma value creation model 5
We accelerated our transformation during 2020 6
Chairman’s greetings 7
CEO’s greetings 8
Board of Directors’ Report 11
Financial Statements
Consolidated income statement 37
Statement of comprehensive income 38
Consolidated balance sheet 39
Changes in consolidated equity 40
41
42
Audited Part of the Board of Directors’ Report
103
113
Auditor’s report 114
For investors 119
2020 cover continuing operations only. Figures related to balance sheet and
Further information on Sanoma as an investment is available at
sanoma.com/en/investors
2 Sanoma Annual Review 2020
Board of Directors’ Report Financial StatementsYear 2020
Dividend per share
Financial highlights 2020
Operational EBIT margin excl. PPA
Earnings improved in Learning and
(2019: 15.1%)
14.7%
(2019: € 0.50)
€ 0.52
Leverage
(2019: 2.7)
2.6
In December, the Group's leverage target
Sanoma is an innovative and agile learning and
media company impacting the lives of millions
every day.
Our learning products and services enable teach-
ers to develop the talents of every child to reach
teaching platforms for primary, secondary and vo-
across Europe.
Our Finnish media provide independent journalism
and engaging entertainment also for generations
for our business partners.
information is available at
.
Sanoma in brief
3 Sanoma Annual Review 2020
Board of Directors’ Report Financial StatementsYear 2020
Key investments highlights
We continue to grow Sanoma
Learning, the leading European
K12 learning business
We focus on K12 (= primary, secondary and
barriers to entry due to local nature of the business
We are the leading player in a highly fragmented
We have a M&A headroom of
300-400m€ and focus on growing
our learning business further
Continued focus on European K12 learning services;
ongoing consolidation driven e.g. by digitalisation in
and digital platforms
Highly synergistic, bolt-on acquisitions in the media
business in Finland could be considered
We pay a solid dividend
Sanoma is a sustainable
investment with learning and
media having a positive impact
on society
data, Vital environment and Valued People
Responsible and ethical business practices and
supply chain integrity are fundamental for us
We are the leading cross-media
company in Finland and
continue our successful digital
transformation
Increasing share of consumer income and
transformation
4 Sanoma Annual Review 2020
Board of Directors’ Report Financial StatementsYear 2020
Inclusive
learning
We develop inclusive learning
solutions that help all students to
achieve their potential.
Sustainable
media
We provide trusted Finnish
journalism and inspiring
entertainment, now and in
the future.
Trustworthy
data
We use the data you trust us
with to make learning and
media better.
Vital
environment
We act to reduce our climate
impact and build fact-based
awareness of sustainability
Valued
people
We promote equality and provide
an inspiring workplace with
excellent opportunities to develop.
Sanoma Sustainability Strategy
Sanoma impacts the lives of millions of people every day. We work hard to provide them with the highest-quality learning resources and Finnish independent media and local entertainment. We aim to
create better understanding for people, communities and businesses to evolve and thrive. To improve our sustainability eorts, we conduct regular materiality assessments and stakeholder engage-
ment for our impact and activities. Our most recent assessment was conducted in autumn 2020. As a result, we identied six material themes that provide the framework for our work. The Sanoma
Board of Directors approved the strategy in December 2020. The updated Sanoma Sustainability Strategy is designed to maximise our positive impact on society – our ‘brain-print’ – and to minimise
our environmental footprint.
Responsible and ethical business practices and supply chain integrity are fundamental for us.
Sanoma Annual Review 2020
Board of Directors’ Report Financial StatementsYear 2020
Inputs
Business activities
Outputs
Impacts
Sanoma value creation model
Operational
Systems and applications
Own and external printing facilities
Distribution and transportation
User data
Human, social & intellectual
Committed and diverse personnel
(about 5,000 employees at the
end of 2020) and freelancers,
who have competence and
know-how in learning and media
content creation, innovation and
development
Key stakeholder relations and
engagement with teachers,
readers and users to understand
customers’ needs
Financial
Equity M€ 710
Net debt M€ 661
Natural
Energy used 46,800 MWh
Paper used 57,700 tonnes
Operational, intellectual & social
Modern learning materials,
methods and digital platforms
Independent, high-quality
journalism
Local entertainment
Optimal reach and targeting
for successful and
responsible advertising
Customer value by responsible
use of data
New products and solutions to meet
the changing customer needs
Human
Engaged diverse employees
Increased knowledge and
knowhow
Financial
Earnings* M€ 157
Employee benets M€ 295
Net nancial costs M€ 9
Taxes and employer charges M€ 60
Free cash ow M€ 95
Dividends paid M€ 83
Natural
GHG emissions 89,100 t CO
2
/e
Learning materials,
methods &
digital platforms
Media content
Advertising
Business
development
Leadership
and talent
management
Data & privacy
Governance framework
We are a
front-running
learning and
media company
Our products have a positive
impact on the lives of
millions of people every day.
Customers are at the heart
of everything we do.
We think and work
according to our values.
The value creation model describes Sanoma’s business model as well as Sanoma’s role and impacts in its value chain. Sanoma uses certain resources and inputs in developing, producing, curating
and distributing learning and media content and oering services. The model also describes the most material outputs of Sanoma’s business operations, and their impacts on Sanoma’s audiences,
customers, society and other stakeholders. The value creation model is part of non-nancial information included in the Report of the Board of Directors. All numbers presented in the model are for
continuing operations in 2020.
* Operational EBIT excl. PPA
Our products have a positive
impact on the lives of millions of
people every day
Our modern, high-quality
materials, methods and digital
platforms support high learning
results and contribute to successful
and stable development of
societies
Our independent, high-quality
journalism supports freedom
of speech and increases
people’s awareness and
intellectual capital
We enrich people’s lives by
entertainment contributing to
shared values and experiences
We contribute to economic
growth via responsible advertising
and employment
We support users' awareness
about the benets of data and
their trust on our data integrity
We play an active role in
responsible and forward-looking
development of learning and
media industries
We work to minimise the
environment and climate impact
across our value chain
6 Sanoma Annual Review 2020
Board of Directors’ Report Financial StatementsYear 2020
We accelerated our transformation during 2020
Two focused,
leading
businesses
with solid
300-400m€
headroom for
M&A
ACQUISITIONS
Four acquisitions
in K12 learning
services in 2019
Regional news
media business
in Finland
Santillana Spain,
leading provider of K12
learning content
in Spain; closed on
31 December
Media
Netherlands
business Oikotie
Our learning
business
Our media business
7 Sanoma Annual Review 2020
Board of Directors’ Report Financial StatementsYear 2020
Chairman’s greetings
Dear Shareholders,
We continued to execute our thoroughly prepared strategic
transformation. 2020 became a milestone year for Sanoma.
local cross-media business in Finland. The learning business
invest in developing our businesses.
Change for us is an everyday reality. Anticipating the direction
and magnitude of change helps us evaluate and understand
our strengths. Our leading driver in this is to serve our customers
better in their changing needs.
-
est-quality learning materials and platforms. We aim at
creating better understanding for people and communities to
support every child in reaching their full potential. Education
We relentlessly promote the prerequisites for freedom of
part of an open and democratic society. Freedom of expression
in our society in Finland.
Learning and media have an intrinsically positive impact on
of our sustainability programme and set our goals for the
coming years. Sustainability has already for years been part
climate impact and respecting people and diversity are among
the critical challenges facing all players in our industries and
societies. These responsible and ethical business practices
commit to the same.
learning and media. With our solid financial position and
for further acquisitions. Our ambition is to continue to create
increasing value for both our customers and our shareholders.
strongly impacted by the pandemic.
Pekka Ala-Pietilä
Chairman of the Board
Sanoma Annual Review 2020
Board of Directors’ Report Financial StatementsYear 2020
CEO’s greetings
Dear Shareholders,
certainly also for Sanoma. The global pandemic crisis had a
I am proud to say that despite these unprecedented conditions,
-
previous year.
continue to serve and support our customers. We proceeded
from Alma and acquiring Santillana Learning business in Spain.
-
Managing through the Corona pandemic
crisis with three key priorities
hit all societies hard and brought profound changes to our daily
possible.
others, nor that it stimulated others to behave dangerously.
almost fully remotely.
The second priority was supporting our customers.
our tools and content to teach at a distance and, if needed,
free-of-charge.
Our third priority was to ensure our long-term strategy
stayed intact and our capabilities improved. We focused on
continuing the integrations of our recently acquired businesses
and supporting the buyers of our divested businesses through
this pandemic.
Even though our advertising sales declined by 13% in January–
place in 2020; the business still contributed due to insurance
compensation. In Learning, the prolonged pandemic had
in the daily operations compensated for that mostly.
apply for governmental support.
Having become the leading K12 learning
company in Europe
Sanoma is today the leading European K12 learning company
Sanoma Annual Review 2020
Board of Directors’ Report Financial StatementsYear 2020
of K12 learning services, K12 being primary, secondary and
vocational education. Our Learning services cover blended
our experience in our international platforms give us strong
competitive advantages.
The Learning business has elements of stability and predicta-
for further acquisitions.
Continuing to be the leading media
company in Finland successful in its digital
transformation
-
“Sanoma is a
sustainable
investment with
learning and
media having an
intrinsically positive
impact on society.”
ment in the digitization of both consumer and advertiser products
to increasing misinformation through social media. We have
-
-
titles are strong brands and have an extensive and dedicated
customer base in their regions and are complementary to our
-
regional relationships. We believe the sharing of learnings and
Sanomat can accelerate our combined digital usage and
increase attractiveness especially for the younger audiences
across the regions.
-
mand to more than 300,000 subscriptions and launched a paid
-
Sanoma as an investment
leading K12 European learning company and the leading cross-
important that our shareholders receive a solid dividend.
10 Sanoma Annual Review 2020
Board of Directors’ Report Financial StatementsYear 2020
Our Dividend policy has remained unchanged. We pay an
company that today obtains close to 70% of its earnings from
the stable and predictable learning business.
company has a very light environmental footprint. As you can
on formulating our sustainability goals last year.
Our teams make our success
-
-
mance and dedication in this far from easy year.
and employees for your trust and commitment during this
company and focus on our sustainability goals. We hope that
Susan Duinhoven
President & CEO
11 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Strategic review
strengthen its media business in Finland in the chosen core
Spain, the leading provider of learning materials in Spain, and
-
and B2C media businesses.
-
health and safety of its employees and providing solid support
to its customers and business partners. With its approach to the
pandemic, the company’s management and employees have
-
Sanoma Learning is the leading European K12 learning
company serving more than 20 million students across Europe.
exclusively on K12 mainly through four acquisitions completed
and distribution services operating also in Belgium and Spain.
publishers. At the end of December 2020, the company closed
the acquisition of Santillana Spain, the leading Spanish provider
more digitalised countries.
solutions. At the end of April, Sanoma closed the acquisition
Sanoma’s digital subscription base, and in the sustainable
Report of the Board of Directors for 2020
younger audiences. The integration of the acquired business
term competitive advantages in its strategic core businesses.
Sustainability is in the DNA of Sanoma. Its learning and media
businesses have a positive impact on the lives of millions of
people every day and its environmental footprint is small.
Sanoma has further enforced its positive role in society through
Vital environment, Valued people, and Responsible business
-
able business across the value chain also in the coming years.
12 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Financial review
NET SALES BY SBU
EUR million FY 2020 FY 2019 Change
Learning 336.0
-2%
Other operations -0.3
Group total 1,061.7 16%
impact of the coronavirus pandemic on events and advertising
OPERATIONAL EBIT EXCL. PPA BY SBU
EUR million FY 2020 FY 2019 Change
Learning 27%
66.6 -4%
Other operations -7.4 20%
Group total 156.5 137.6 14%
-
navirus pandemic.
IACs, PPAs AND RECONCILIATION OF OPERATIONAL EBIT
EUR million FY 2020 FY 2019
EBIT 270.1
Restructuring expenses -23.0
Impairments -0.6
Capital gains / losses
IACs total 135.9
Purchase price allocation
adjustments and amortisations
(PPAs)
-22.3
Operational EBIT excl. PPA 156.5 137.6
A detailed reconciliation on SBU level is presented on p. 32.
the IACs consisted of transaction and integration costs related
to recent acquisitions, in particular Santillana Spain and the
recent acquisitions especially in Learning.
-
tinued operations.
Financial position
Compared to the end of September 2020, net debt increased
31 December 2020.
At the end of December 2020, the Group’s equity totalled
Cash ow
typical seasonal pattern. For dividend calculation purposes, the
operations compared to the previous year.
digital platform and ICT development as a result of recent
acquisitions in Learning.
13 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Acquisitions and divestments
Santillana Spain, a leading Spanish provider of K-12 learning
on average. The acquisition is estimated to create annual
to be realised during 2022. The agreed enterprise value of
completed on 31 December 2020. Total assets and liabilities in
the Group’s consolidated balance sheet at the end of December
Learning SBU as of 1 January 2021.
On 16 July 2020, Sanoma announced it had divested its online
-
On 20 April 2020, Sanoma announced it had completed the
subject to customary closing conditions, including the approval
received at closing. The EV corresponds to an EV / Adjusted
-
ment to reduce its debt.
On 11 February 2020, Sanoma announced it had signed an
or approx. EUR 20 million including the impact of the delivery
The acquisition is estimated to create annual net synergies
in full as of 2022. Enterprise value of the acquired business is
forma adjusted EBITDA including the impact of the delivery
In the beginning of 2020, the acquired business had approx.
including approval by the Finnish Competition and Consumer
and earlier is available at Sanoma.com.
Events during the year
increased to an operational EBIT margin excl. PPA of ‘above
Sanoma Group Target
Net debt / Adj. EBITDA
Equity ratio
Dividend policy
1
increasing dividend
corresponding to 40-60% of
Sanoma Learning Target
Operational EBIT margin excl. PPA above 23%
Sanoma Media Finland Target
Operational EBIT margin excl. PPA 12-14%
1
current and target capital structure, Sanoma’s future business
On 3 December 2020, Sanoma signed a EUR 200 million
-
2020. With the term loan, Sanoma converted part of the acqui-
14 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Learning
Sanoma Learning is the leading European learning company,
serving over 20 million students in 11 countries. Our learning
products and services enable teachers to develop the talents of
platforms for K12, i.e. primary, secondary and vocational
We develop our methodologies based on deep teacher and
student insight and truly understanding their individual needs.
By combining our educational technologies and pedagogical
highest learning impact.
KEY INDICATORS
EUR million FY 2020 FY 2019 Change
Net sales 336.0
Operational EBITDA
1
167.1 127.3 31%
Operational EBIT excl.
PPA
2
27%
2
EBIT 66.4 16%
Capital expenditure 32.6 21.4
Average number of
1,472
1
Excluding IACs.
2
Full reconciliation of operational EBITDA and operational EBIT
excl. PPA is presented in a separate table on p. 32.
NET SALES BY COUNTRY
EUR million FY 2020 FY 2019 Change
The Netherlands
Poland
Finland 1%
Belgium 76.1 33%
Other countries and
eliminations
1
Net sales total 499.7 336.0
1
The learning business has, by its nature, an annual cycle with
strong seasonality. Most net sales and earnings are accrued
during the second and third quarters, while the rst and fourth
quarters are typically smaller in net sales and loss-making.
The recent acquisition of Santillana Spain will further increase
the importance of the third quarter, when the new school
year starts, for the business. Shifts of single orders between
quarters may have a material impact when comparing
quarterly net sales and earnings on a year-on-year basis,
and, therefore year-to-date gures typically provide a more
comprehensive picture of Learning’s business performance
and development than quarterly gures.
upper primary and upper secondary education. Net sales also
The coronavirus pandemic had a limited impact on net sales,
visible during the second and fourth quarters.
Poland and the Netherlands. Faster than expected shift from
acquisitions. PPA amortisations increased to EUR 16 million
digital platforms and ICT.
Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Media Finland
experiences, inspiration and entertainment through multiple
online and mobile channels. We have leading brands and
and reach.
KEY INDICATORS
EUR million FY 2020 FY 2019 Change
Net sales -2%
Operational EBITDA
1
146.6 -3%
Operational EBIT excl.
PPA
2
66.6 -4%
2
12.0%
EBIT
Capital expenditure 32%
Average number of
14%
1
Excluding IACs .
2
Full reconciliation of operational EBITDA and operational EBIT
excl. PPA is presented in a separate table on p. 32.
NET SALES BY CATEGORY
EUR million FY 2020 FY 2019 Change
Print 7%
Non-print 271.1 -11%
Net sales total 562.6 -2%
EUR million FY 2020 FY 2019 Change
Advertising sales 231.6 247.3 -6%
Subscription sales 230.0 17%
Single copy sales
Other -34%
Net sales total 562.6 -2%
net sales of the events business amounted to EUR 0.6 million
media business acquired on 30 April 2020 amounted to
year driven by strong development in both Helsingin Sanomat,
had a negative impact especially on print advertising. Digital
especially in TV, online and radio advertising. Due to restrictions
According to the Finnish Advertising Trends survey for
Finland declined by 17% on a net basis in 2020. The decline
by 4% in radio, and increased by 3% in online (including search
-
16 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
tained mainly due to active cost mitigation actions across
cost categories, including personnel, operating expenses,
received.
the transaction and integration costs related to the acquisi-
consisted of maintenance investments.
Personnel
In 2020, the average number of employees in full-time equiva-
operations. The number of employees increased as a conse-
quence of acquisitions.
Wages, salaries and fees paid to Sanoma’s employees,
including the expense recognition of share-based payments,
Non-nancial information
As a leading European K12 learning company and the leading
cross-media company in Finland, Sanoma plays an important
role in society, and its products have a positive impact on the
lives of millions of people every day. Sanoma aims to maximise
its positive social and economic impact and minimise its envi-
ronmental footprint across its business. Sanoma is committed
to promoting ethical and responsible business practices in its
impacts in its value chain are described in more detail in the
information on sustainability is available at
en/sustainability.
-
Governance Statement 2020 available at
en/investors.
Sanoma sustainability strategy
-
holder engagement for its sustainability impact and activities.
approved the strategy in December 2020. Topics in the Sanoma
Sustainability Strategy relate to the themes reported in this
respect for human rights, and anti-corruption and anti-bribery.
future by implementing the UN Sustainable Development Goals
into its Sustainability Strategy.
The updated Sanoma Sustainability Strategy focuses on the
Inclusive learning: We develop equal learning solutions
that help all students to achieve their potential
Sustainable media: We provide trusted Finnish journalism
Trustworthy data:
Vital environment: We act to reduce our climate impact
Valued people: We promote diversity and provide an
Responsible and ethical business practices and supply
chain integrity are fundamental for us
Compliance and Code of Conduct
Sanoma applies responsible business practices and promotes
responsible behaviour of employees by enforcing a common set
of rules and values and ensuring that all employees commit to
and regulations applicable in its operating countries, ethical
Group’s internal policies and standards.
-
responsible manner. The Code encompasses the Ten Principles of
the UN Global Compact on human rights, labour, environment and
anti-corruption and is an integral part of shared values that guide
the principles of business and is publicly available on Sanoma’s
full in their day-to-day conduct and business decisions.
17 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
the acquisition is completed.
Together, the Code of Conduct and the Sanoma Supplier Code
sets out the ethical standards and responsible business prin-
-
step for successful selection. The Supplier Code is an integral
component of the standard contractual procurement and
and performance appraisal.
Reporting Channels
Sanoma’s Code of Conduct, the Supplier Code of Conduct,
and Sanoma’s group policies and operating procedures are
intended to prevent and detect misconduct and improper
or illegal activities. Any suspicions about violations can be
reported anonymously through internal or external reporting
-
-
of investigations are reported to the Ethics and Compliance
Committee and to the Audit Committee of the Board.
The policies are applicable to all employees of Sanoma Group,
and are available on the intranet.
Disclosure policy
Donations policy
External travel policy
Fair competition policy
Information security policy
Insider policy
Internal audit policy
Internal control policy
IPR policy
Privacy and data protection policy
Procurement policy
Related party policy
Tax policy
Travel policy
Treasury policy.
such as requiring completion of compliance related trainings
from all employees. Sanoma has a Code of Conduct e-learning,
Trustworthy data
Data is an increasingly essential part of Sanoma’s business
putting privacy and consumer trust at the core of the Group’s
to optimise teaching and students to receive personalised
and personalised media.
Sustainability Strategy. Sanoma has invested in data-se-
Programme that monitors development and enforcement of
privacy regulations, has oversight of the implementation of the
Privacy is incorporated into product development through a
‘Privacy by Design’ process supported by ’Privacy Champions’,
their respective business areas.
Sanoma has a privacy e-learning in use. In addition, role-based
employee groups. In 2020, the completion rate of the privacy
3–6 months after the acquisition is completed.
of these sustainability targets are related to achieving certain
data and privacy targets.
Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
its climate goals. To ensure the fact-base of its climate actions,
Sanoma calculates its emissions annually throughout the
change for Sanoma’s business, transparent reporting and
comparable monitoring of emissions on annual basis.
ENERGY USE
2019 2020
Energy intensity,
11.0
GHG EMISSIONS
2019 2020
Scope 1. Direct GHG
emissions tCO
2
e, total
70
Scope 2. Energy indirect GHG
emissions tCO
2
based, total
10,116
Scope 3. Other indirect GHG
emissions tCO
2
e, total
74 300
intensity, tCO
2
e /employee
2.4 2.4
GHG emissions intensity,
tCO
2
e /employee
23 23
Sanoma’s Paper Procurement Standard is annexed to all paper
procurement agreements. The aim of the standard is to ensure
that paper used by Sanoma is produced responsibly and origi-
Vital environment
emissions in its supply chain, mainly resulting from the trans-
portation and distribution of its learning and media products
-
ronmental impacts through the emissions resulting from energy
e in 2020
-
Together, the Sanoma Code of Conduct and the Supplier
Codeset out Sanoma’s environmental principles. Sanoma aims
to prevent and minimise environmental and climate impacts
Sanoma’s goal is to become carbon neutral throughout the
in Finland, including a modern, state-of-the-art printing plant
increased during 2020.
Sanoma’s paper use increased by 2,000 tonnes, or by 3.7%
Finland at the end of April 2020. Overall, driven by the prevailing
media trend of consumers moving from printed to hybrid or
digital media products, comparable paper usage continued to
2018 2019 2020
Newsprint
Includes paper used in Sanoma’s own printing facilities for
own and externally sold print products, as well as paper
acquired for own products printed by third parties. Book
paper is used in Learning and newsprint and magazine
paper in Media Finland. Figures refer to continuing
operations.
Magazine paper
Book paper
PAPER USE
tonnes
36,900
32,200
33,700
15,800
16,000
17,000
8,400
7,50 0
6,900
Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Valued people
Valuing our people is one of the six main themes of the Sanoma
Sustainability Strategy and Sanoma is committed to promoting
opportunities to develop. Sanoma’s Code of Conduct sets
out the general principles of ethical conduct and Sanoma’s
responsibilities as an employer. Sanoma has zero tolerance
for any form of discrimination, harassment or bullying at
employees and ensures fair treatment, remuneration and good
In 2020, Sanoma’s visible and transparent leadership model
became a crucial part of the crisis management during the
coronavirus pandemic. During the pandemic, Sanoma’s
employees and providing solid support to its customers and
business partners. To foster creativity, Sanoma’s corporate
culture supports employees’ autonomy and freedom in
user-friendly, cloud-based IT tools and systems, also supported
started in spring 2020.
As a learning and media company, professional development
of employees is crucially important to Sanoma, and on-going
in a normal year also as live training courses. The main focus is
and digitalising operating environment are in place.
Inclusion policy. According to the policy, Sanoma recruits,
ethnicity, sexual orientation, family status, disability or other
discrimination. Recruitment, remuneration and career advance
-
ment are based on employee competence and performance.
Sanoma also supports professional development, motivation,
survey’s for employees to ensure, that the management has
Sanoma measures employee engagement, leadership, the
feeling of inclusiveness, internal communication and decision
previous year being overall at a very good level.
of these sustainability targets are related to the results of the
Employee Engagement Survey.
According to the Employee Engagement Survey, employees
e.g.
-
rus pandemic, and
support and appreciate the company’s leadership culture.
56%
16%
17%
4%
7%
Finland
The Netherlands
Poland
Belgium
Other
EMPLOYEES BY COUNTRY
2018 2019 2020 2021
Response rate 2021: 88%, 2020: 88%, 2019: 92%, 2018: 92%
71.1
68.8
69.8 71.1
RESULTS OF EMPLOYEE
ENGAGEMENT SURVEY
People power rating, 0–100
20 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
MANAGEMENT AND PERSONNEL BY GENDER
Women Men
Board of Directors 20%
All employees
Anti-bribery, corruption and supply chain
Sanoma has an anti-bribery and corruption e-learning in use.
In 2020, completion rate of the e-learning among targeted
the acquisition is completed.
Sanoma expects the same commitment to ethical and respon-
sible business conduct also from its suppliers.
The Supplier Code of Conduct forms an important component
supplier selection, evaluation and performance appraisal. All
contract solution incorporate the Supplier Code of Conduct as
a mandatory step for successful selection. The Supplier Code of
and general terms of purchase.
activities and role. The process includes anti-bribery, sanctions
Group Procurement.
employees on the intranet to screen thoroughly not just
suppliers, but any third party Sanoma intends to do business
refers employees to consult Group Legal before engaging in any
Share capital and shareholders
At the end of December 2020, Sanoma’s registered share
-
share-based incentive plans.
at the end of December 2020. List of the largest shareholders,
shareholder distribution by number of shares and distribution
Acquisition of own shares
2020. During that time, Sanoma acquired a total of 304,000
-
used as part of the Company’s incentive programme.
Share trading and performance
In 2020, the cumulative value of Sanoma’s share turnover on
number of shares. Sanoma’s share turnover, including alter-
<25 25–29 30–39 40–49 50–59 >60
135
445
1,301
1,387
1,029
267
EMPLOYEES BY AGE
21 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
treasury shares held by the Company in one or several instal-
ments. The issuance of shares, the conveyance of treasury
shares and the granting of option rights and other special rights
entitling to shares may be done in deviation from the share-
to decide on issuance of shares, option rights and other special
Executive Management Team
Related party transactions
SBU management teams are under obligation to submit certain
approval. In addition, the Board Charter includes instructions
for Board members’ conduct in related party transactions and
Risk review
-
Corporate Governance
Sanoma has published a separate Corporate Governance
Statement and Remuneration Report. They are available at
.
Decisions of the Annual General
Meeting 2020
Financial Statements, the Board of Directors’ Report and the
-
tion Policy for governing bodies and discharged the members
donations to be used at the Board of Directors’ discretion. The
-
tered in the shareholders’ register of the Company maintained
in the shareholders’ register of the Company maintained by
Board of Directors decided the dividend record date for the
second instalment to be 30 October 2020 and the dividend
payment date 6 November 2020.
Herlin as the Vice Chairman. The term of all the Board members
the members of the Board of Directors shall be increased. The
the Board, EUR 7,000 for the Vice Chairman of the Board, and
EUR 6,000 for the members of the Board. The meeting fees of
the Board of Directors remained unchanged.
The Auditor shall be reimbursed against invoice approved by
the Company.
Board authorisations
funds from the Company's unrestricted shareholders’ equity,
and the repurchases shall reduce funds available for distribution
it terminated the corresponding authorisation granted by the
option rights and other special rights entitling to shares as
Companies Act. Option rights and other special rights entitling
Limited Liability Companies Act may not be granted as part
22 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
become material in the future.
management principles, objectives, roles, responsibilities and
procedures also covering sustainability and the climate-re-
-
priorities. Strategic Business Units are responsible for identi-
planned mitigation actions is done to the Audit Committee and
roles and responsibilities are presented in more detail in the
each Interim Report during the course of the year.
Strategic risks
Mergers & Acquisitions (M&A)
parties and the transaction process itself, including the regula-
or suitable targets may not be available at the right valuation.
as by the development of alternative distribution channels
-
tition may arise from large international media and telecom
-
international media companies, digital entrants, educational
technology companies, open educational resources and user
established businesses.
-
opment of digital and hybrid learning and media products
in the business, and digital solutions are typically combined
branded and premium content. The share of print advertising of
in 2020.
Political and legislative risks
regulations in the countries the Group operates and changes
of acquisitions or that the anticipated economies of scale or
synergies do not materialise.
-
-
Changes in customer preferences and the threat of
new entrants
materials, methods and platforms have gradually been gaining
and digital learning materials. Also in the learning material
distribution services, this shift is being paralleled by a move
commercial models. Both trends and/or their acceleration
With the continued development of alternative forms of media,
particularly digital media, the Group’s media businesses and
the strength of its media brands depend on its continued ability
to identify and respond to constantly shifting consumer pref-
Changes in customer preferences are visible not only in
consumer behaviour, but also both directly and indirectly in
advertising demand. Demand for digital advertising has been
in recent years, and the trend is expected to continue. The
decreasing.
are highly competitive and include many regional, national and
23 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
-
particularly advertising and events sales more than others. In
of the Group’s business.
Sanoma’s diverse business portfolio and active actions to
-
Operational risks
Data and privacy risks
Data is an increasingly essential part of Sanoma’s products
and services in both the learning and media business. The
requirements for implementing data subject rights, and for
companies to demonstrate their accountability for complying
the ePrivacy Directive imposes requirements for online data
privacy are potential data breaches resulting from unauthor-
ised or accidental loss of or access to personal data managed
by Sanoma or by third parties processing data on Sanoma’s
a Privacy Programme that monitors the development and
enforcement of privacy regulations and has oversight of
the implementation of Sanoma’s Privacy Policy. Key privacy
implementation processes include data lifecycle management,
information security measures to protect data, data breach
example, changes in educational regulation could have a
-
the introduction or delay, pace, scope and timing of changes
in education-related legislation in Sanoma Learning’s other
Data is an increasingly essential part of Sanoma’s business
putting privacy and consumer trust at the core of the Group’s
daily operations. Regulatory changes regarding the use of
consumer data for commercial purposes could, therefore,
its business. The proposed ePrivacy Regulation related to
telesales and content personalisation may have an impact on
B2C media sales and B2B advertising business. Changes in the
digital advertising ecosystem, such as the deprecation of third
in digital advertising sales.
and practices applicable to Sanoma’s products and services
-
on the Group’s circulation sales due to a decrease of demand.
Furthermore, the deterioration of publishers’ and broadcasters’
copyright protection or increase in legal obligations (such as
increase costs related to acquiring and managing copyrights.
Close monitoring and anticipation of political and regulatory
development and adaption of business models accordingly
ecosystems is mitigated through Sanoma’s direct customer
contacts and domestic capabilities in direct display sales,
digital sales channels, digital direct sales product portfolio
General economic conditions
The general economic conditions in Sanoma’s operating
countries and the overall industry trends could influence
Sanoma’s business, performance or financial status. In
learning business relate to the development of public and
private education spending especially during the curriculum
characterised by declines in overall economic activity and
consumer spending typically result in a decreased demand
for advertising.
events that are beyond Sanoma’s control, such as natural
disasters and pandemics. For example, the ongoing corona-
virus pandemic has, in general, caused a reduction in business
labour shortages, supply chain interruptions and overall
24 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
management procedures, and the implementation of data
subject rights. Privacy requirements and threat assessments
are incorporated into product development, and privacy
impact assessments are conducted to ensure the compliance
privacy responsibilities have been nominated and trained to
in industry-level cooperation in creating and implementing
standardised approaches to manage data both in learning
and media businesses.
Information and communication technology (ICT)
Reliable ICT systems form an integral part of Sanoma’s
business. The systems include online services, digital learning
-
production control, customer relations management and
-
ality, integrity and/or availability of information or systems as
of persona data or other sensitive data assets, and employee
recovery plans for its critical systems and clear responsibilities
regarding ICT security in place. Information security controls
include the use of threat intelligence capabilities, cyber security
incident detection capabilities, identity and access manage-
ment solutions, log management capabilities and the use of
external information security audits.
Risks related to third parties
Sanoma’s daily business. Third-party suppliers in Sanoma’s
value chain include, among others, technology solution and
as content providers for learning materials and media content.
to become material unless it escalates to concern a large group
-
-
Although Sanoma is not dependent on any individual suppliers,
third party suppliers that meet Sanoma standards and iden-
-
-
Counterparty controls as part of the supplier approval process,
and monitors the performance of third parties by performance
approvals and service-level agreements.
Intellectual Property Rights (IPRs)
Sanoma’s products and services largely consist of intellectual
property delivered through a variety of media. Key intellectual
property rights related to Sanoma’s products and services are
and procedures to establish and protect its proprietary rights in
these products. Because of a dispersed IPR portfolio, no material
Hazard risks and business disruption
Operational disruption to the Group’s business may be caused
by a major disaster and/or external threats that could restrict
its ability to supply products and services to its customers.
The Group is exposed to various health and safety and envi-
Sanoma’s control and that could cause business interruption
disrupting daily business activities. Any failure to maintain high
levels of safety management could result in physical injury,
result in the impairment of Sanoma’s reputation or inability to
planning. In addition, Sanoma’s insurance programme provides
performance.
Non-nancial risks
Talent attraction and retention
engaged management and employees, and on their competen-
become increasingly difficult as a result of various factors,
-
fying competition for personnel. Should the Group fail to attract,
retain, develop, train and motivate qualified, engaged and
Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
and development of its business operations in the long-term.
businesses after closing.
set in Sanoma’s Code of Conduct and Diversity Policy. The culture
is further supported by open and transparent leadership and
professional development. For acquired businesses, Sanoma
-
enhancing the corporate culture as part of the integration plan.
Environmental and climate risks
emissions and energy use in its value chain, use of paper as
-
tation and distribution of its learning and media products. Even
though Sanoma’s business as a media and learning company
is not highly carbon-intensive, all companies face increasing
may not be able to directly impact the mix of energy sources
used. In addition, Sanoma may not be able to control the use
of energy of its third-party suppliers. The declining demand
remain relatively stable on a comparable basis.
Sanoma prevents and minimises negative environmental
-
Strategy set concrete targets and action plans to minimise
its environmental impacts related to energy and paper use
relevant environmental legislative, regulatory and operating
standards. Due to the nature of Sanoma’s business, no material
Risks related to human rights, anti-corruption and
bribery
Sanoma operates in eleven European countries and is
committed to conducting business in a legal and ethical
they may act unethically. In the learning business, Sanoma’s
business partners mainly include municipalities, other govern-
selling advertising space to companies. Breaches of the appli-
employees or business partners may lead to legal processes,
operations.
human rights and labour conditions, and it clearly prohibits
all corruption and bribery. The requirements of the Code are
extended to Sanoma’s suppliers through the Supplier Code of
e-learning course on the Code of Conduct to all employees.
violations against the Code can be reported anonymously.
Financial risks
are mitigated according to the Group’s Treasury Policy, e.g.
assets at the end of December 2020. After the acquisitions
being amortised regularly, it is tested for impairment on an
-
ment. Changes in business fundamentals could lead to further
impairment, thereby impacting Sanoma’s equity-related ratios.
Key impacts of the coronavirus
pandemic
certain extent; after the acquisitions completed in Learning
26 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
the Group’s operational earnings came from Learning in 2020.
In Learning, the coronavirus pandemic had some adverse
Sanoma’s main operating countries may lead to continuing
net sales impact related to training sales and opportunities
comparable basis, and by 17% including the acquired regional
On 22 April, the Finnish authorities decided to prohibit all large
cancelled. In 2020, net sales of the events business amounted to
-
The coronavirus pandemic had a material impact on the full
-
-
pandemic continues, Sanoma expects continued uncertainty
Signicant near-term risks and
uncertainties
environment. The ongoing coronavirus pandemic may
related to the pandemic in 2020 are presented under the title
or become material in the future.
parties and the transaction process itself, including the regula-
or suitable targets may not be available at the right valuation.
of acquisitions or that the anticipated economies of scale or
synergies do not materialise.
materials, methods and platforms have gradually been gaining
and digital learning materials. Also in the learning material
distribution services, this shift is being paralleled by a move
commercial models. Both trends and/or their acceleration
With the continued development of alternative forms of media,
particularly digital media, the Group’s media businesses and
the strength of its media brands depend on its continued ability
to identify and respond to constantly shifting consumer pref-
Changes in customer preferences are visible not only in
consumer behaviour, but also both directly and indirectly in
advertising demand. Demand for digital advertising has been
in recent years, and the trend is expected to continue. The
decreasing.
are highly competitive and include many regional, national and
as by the development of alternative distribution channels
-
tition may arise from large international media and telecom
-
international media companies, digital entrants, educational
technology companies, open educational resources and user
established businesses.
27 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
regulations in the countries the Group operates and changes
example, changes in educational regulation could have a
-
Furthermore, the deterioration of publishers’ and broadcasters’
and services and may increase costs related to acquiring and
managing copyrights. In addition, changes in the Digital Single
and practices applicable to Sanoma’s products and services
The general economic conditions in Sanoma’s operating
countries and the overall industry trends could influence
business relate to the development of public and private
declines in overall economic activity and consumer spending
typically result in a decreased demand for advertising.
Data is an increasingly essential part of Sanoma’s business
putting privacy and consumer trust at the core of the Group’s
daily operations. Regulatory changes regarding the use of
consumer data for commercial purposes could, therefore,
its business. The proposed ePrivacy Regulation related to
telesales and content personalisation may have an impact on
B2C media sales and B2B advertising business. Changes in the
digital advertising ecosystem, such as the deprecation of third
in digital advertising sales.
impairment of assets. As part of the full-year reporting, Sanoma
on the expected credit losses and adjusted provisions related
Sanoma’s consolidated balance sheet included
and other intangible assets at the end of December 2020. After
indication of impairment. Changes in business fundamentals
could lead to further impairment, thus impacting Sanoma’s
equity-related ratios. Based on the impairment testing at the
Outlook for 2021
compared to the previous year and that there are no major
restrictions related to the events business in Finland. In addition,
impacted by prolonged school closures in its main operating
countries.
Dividend proposal
On 31 December 2020, Sanoma Corporation’s distributable
up EUR 40 million. Including the fund for non-restricted equity
of EUR 210 million, the distributable funds amounted to
of the company maintained by Euroclear Finland Ltd on the
this instalment is 22 April 2021. Record date for the second
Board of Directors in October, and the estimated payment
A sum of EUR 700,000 shall be transferred to the donation
reserve and used at the Board’s discretion.
According to its dividend policy, Sanoma aims to pay an
increasing dividend, equal to 40–60% of the annual free cash
Sanoma’s current and target capital structure, Sanoma’s future
capital structure.
Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
MAJOR SHAREHOLDERS 31 DECEMBER 2020
Shareholders Shares % of shares
1
2 Herlin Antti
12.03
Herlin Antti 0.02
3 12,273,371
4 10,273,370
Helsingin Sanomat Foundation
6 4,400,000
7 Noyer Alex 1.16
Aubouin Lorna 1.13
Foundation for Actors´ Old-Age Home 1.10
10 The State Pension Fund 1,760,000
11
12 Evli Finnish Small Cap Fund 0.66
13 1,000,000 0.61
14 OP-Finland Small Firms Fund
766,771 0.47
16 0.40
17
20 Oy Etra Invest Ab 0.34
20 largest shareholders total 106,945,135 65.38
Nominee registered 21,970,801 13.43
Other shares 34,649,727 21.19
Total 163,565,663 100.00
Annual General Meeting 2021
Tuesday, 13 April 2021 pursuant to temporary legislation
shareholders of the Company and their proxy representatives
can only participate in the meeting and exercise the share-
-
.
Share and shareholders
equal voting rights and other shareholder rights. The shares
have no redemption and consent clauses, nor any other transfer
related to holdings in Sanoma shares and the exercise of voting
rights.
On 31 December 2020, the combined holdings in the Com-
pany’s shares of the members of the Board of Directors, the
President and CEO, and the bodies they control (as referred
information on management shareholding and remuneration
is available in Note 30.
Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Alternative performance measures
on a non-IFRS basis as alternative performance measures
not be considered as a substitute for performance measures
Sanoma has included Operational EBITDA, and the corre-
non-cash based depreciation and amortisation, for investors. The
Sanoma.com
are available on p. 32–33.
32.4%
15.4%
15.9%
28.0%
2.7%
5.5%
Non-prot
organisations
Households
Foreigners
Financial and
insurance institutions
Public entities
Private companies
HOLDINGS BY SECTOR 31 DECEMBER 2020
SHAREHOLDERS BY NUMBER OF SHARES HELD 31 DECEMBER 2020
Number of shares
Number of
shareholders % Number of shares %
1 - 100 7,374 32.42 0.23
37.60 1.44
1.41
3,023 4.10
422
324 1.42 6,436,330
0.22 2.20
47 0.21
24 0.11
Total 22,748 100.00 163,486,214 99.95
In the joint account
Total 163,565,663 100.00
Discontinued operations
and discontinued operations.
operations during the course of the year. Sanoma’s continuing
30 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Key indicators
EUR million 2020 2019 2018 2017
4
2016
Net sales
1
1,061.7 1,434.7
Operational EBITDA
1
244.7
1
30.3 27.4 27.3
Operational EBIT excl. PPA
1
137.6
% of net sales 14.7
Operational EBIT
1
176.7
% of net sales 12.3 10.6
1
-417.2 42.0
22.3
EBIT
1
270.1 106.7
% of net sales 12.0 13.3
Result before taxes
1
261.0 -262.4 167.3
% of net sales 24.6 10.6
Result for the period from continuing operations
1
72.6 -301.6 122.7
% of net sales 22.4 7.1 -21.0
Result for the period 247.1 13.3 116.0
% of net sales 23.3 14.1
Balance sheet total
Capital expenditure
2
31.7 32.0
% of net sales 3.7 2.4 2.4 2.2
3
131.3 104.7 123.2
40.7 2.2 22.1
24.0 -17.0
Equity ratio, % 37.4 44.7 41.0
Net gearing, % 144.2 71.6
Interest-bearing liabilities 412.4
Non-interest-bearing liabilities 620.1 773.3
Net debt 660.7
Net debt / Adj. EBITDA 2.6 2.7 1.4 1.7
1
3,404 4,746
1
3,410
1
Figures for 2016-2020 contain only continuing operations.
2 Capital expenditure is presented on cash basis for 2017-2020 and on an accrual basis for 2016.
3
4
31 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Share indicators
EUR 2020 2019 2018 2017
3
2016
Earnings/share, continuing operations
1, 6
1.46 0.44 -1.02
Earnings/share
6
0.07 0.76 -1.00
Earnings/share, diluted, continuing operations
1, 6
0.43 -1.02
Earnings/share, diluted
6
0.07 0.76 -1.00
Operational earnings/share, continuing operations
1, 6
0.70
Operational earnings/share
6
0.67 0.72
2
0.67 0.64 0.76
Equity/share 4.23 3.73 3.34
Dividend/share
4
0.20
Dividend payout ratio, %
4
34.4 707.0 neg.
Operational dividend payout ratio, %
4
5
2,240.1
4
3.2 2.4
P/E ratio 133.6 11.1 neg. 12.7
Adjusted number of shares at the end of the period
5
Adjusted average number of shares
5
Highest share price 14.00 10.44 11.47 12.03
Average share price 6.14
Share price at the end of the period 13.74
Trading volumes, shares
% of shares 11.7 24.1 22.3
1
Figures for 2016-2020 contain only continuing operations.
2
3
4
5 The number of shares does not include treasury shares.
6
32 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Reconciliation of operational EBIT excl. PPA
EUR million 2020 2019
EBIT 270.1
and amortisations
1
Learning
Impairments -0.6
Restructuring expenses -12.7 -12.0
PPA adjustments and amortisations -16.2 -6.1
Media Finland
Capital gains/losses
Restructuring expenses -10.0
PPA adjustments and amortisations -6.1 -4.4
Other companies
Capital gains/losses 0.2
Restructuring expenses -0.2 -1.0
and amortisations total
113.6 -33.0
Operational EBIT excl PPA, continuing operations 156.5 137.6
Depreciations of buildings and structures
-13.2 -3.7
Amortisation of prepublication rights -20.7
Other depreciations, amortisations and impairments
impairments
0.6
Operational EBITDA 309.9
EUR million 2020 2019
expenses
Capital gains/losses 1.0
Financial items 0.6
Impairments -1.1
Total 0.6 -0.2
and amortisations in discontinued operations
Capital gains/losses
Impairments
2
-2.6
Restructuring expenses -0.6
PPA adjustments and amortisations -1.4
Total -6.4 -107.3
1
2 In 2020, capital gains/losses include capital loss of EUR 1.6 million related to costs to sell for the
33 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Reconciliation of operational EPS
EUR million 2020 2019
Result for the period attributable to the equity holders of the
Parent Company
246.7
-131.6 126.1
-6.3 -7.2
0.0 0.0
Operational result for the period attributable to the equity
holders of the Parent Company
108.8 130.4
Operational EPS 0.67
Reconciliation of net debt
EUR million 31 Dec 2020 31 Dec 2019
317.7
400.7
Non-current lease liabilities 163.2 162.0
Current lease liabilities 27.3
Cash and cash equivalents -114.6 -23.2
Net debt 660.7
as part of assets and liabilities held for sale in the balance sheet 31 December 2020. In addition,
Reconciliation of adjusted EBITDA
EUR million 2020 2019
12-month rolling operational EBITDA
Impact of acquired and divested operations 31.0
Impact of programming rights
Impact of prepublication rights -23.2
-10.7
Adjusted EBITDA 252.1
Reconciliation of comparable net sales growth
EUR million 2020 2019
Net sales 1,061.7
Impact of acquired and divested operations
Comparable net sales 859.8
Reconciliation of return on equity (ROE), %
EUR million 2020 2019
Result for the period 247.1 13.3
Return on equity, % 40.7 2.2
Reconciliation of return on investment (ROI), %
EUR million 2020 2019
Result before taxes 273.6
14.7 23.3
Balance sheet total - non-interest-bearing liabilities (average of
Return on investment, % 24.0
Non-interest-bearing liabilities include certain Learning operations that are presented as part of
assets and liabilities held for sale in the balance sheet 31 December 2020. In addition, non-inter-
details are presented in Note 26.
34 Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
Denitions of key indicators
KPI Reason to use
=
=
that exceed EUR 1 million
reporting periods
Operational EBITDA =
reporting periods
Operational EBIT excl. PPA =
Equity ratio, % =
Equity total
x 100
equity to total assets
Balance sheet total – advances received
= Basis for Sanoma’s dividend policy
=
Basis for Sanoma’s dividend policy
Net debt = Interest-bearing liabilities – cash and cash equivalents
Net debt / Adj. EBITDA =
The adjusted EBITDA used in this ratio is the 12-month rolling operational EBITDA,
Sanoma’s ability to service its debt
=
Result for the period attributable to the equity holders of the Parent Company
Operational EPS =
Result for the period attributable to the equity holders of the Parent Company – IACs
Net gearing, % =
Interest-bearing liabilities - cash and cash equivalents
x 100
Equity total
=
Result for the period
x 100
employed
=
x 100
assets employed
Sanoma Annual Review 2020
Financial StatementsBoard of Directors’ Report
KPI Reason to use
Non-interest-bearing liabilities =
Non-interest-bearing liabilities include trade and other payables, contract liabilities,
deferred and income tax liabilities, provisions and pension liabilities
Equity/share =
Equity attributable to the equity holders of the Parent Company
Dividend payout ratio, % =
Dividend/share
x 100
Result/share
Operational dividend payout
ratio, %
=
Dividend/share
x 100
Operational EPS
=
Dividend/share
x 100
Share price on the last trading day of the year
P/E ratio =
Share price on the last trading day of the year
Result/share
=
share price on the last trading day of the year
36 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Consolidated Financial Statements
Consolidated income statement 37
Statement of comprehensive income 38
Consolidated balance sheet 39
Changes in consolidated equity 40
41
42
Audited
37 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Consolidated income statement
EUR million Note 2020
Restated
2019
NET SALES 2, 3 1,061.7 912.6
Other operating income 4 207.5 31.0
6 -356.5 -282.5
-294.9 -242.6
Other operating expenses 6 -171.9 -164.8
Share of results in joint ventures 13 0.5 0.4
Depreciation, amortisation and impairment losses 10–12 -176.3 -149.8
EBIT 270.1 104.5
Share of results in associated companies 13 -0.4 0.0
Financial income 7 6.9 3.1
Financial expenses 7 -15.7 -24.9
RESULT BEFORE TAXES 261.0 82.7
Income taxes -23.2 -17.9
RESULT FOR THE PERIOD FROM CONTINUING
OPERATIONS
DISCONTINUED OPERATIONS
Result for the period from discontinued operations 26 9.3 -51.5
RESULT FOR THE PERIOD 247.1 13.3
EUR million Note 2020
Restated
2019
Result from continuing operations attributable to:
Equity holders of the Parent Company 237.4 63.1
Non-controlling interests 0.4 1.7
Result from discontinued operations attributable to:
Equity holders of the Parent Company 9.3 -51.6
Non-controlling interests 0.1 0.1
Result attributable to:
Equity holders of the Parent Company 246.7 11.5
Non-controlling interests 0.5 1.8
Earnings per share for result attributable to the equity
holders of the Parent Company:
Earnings per share, EUR, continuing operations 1.46 0.39
Diluted earnings per share, EUR, continuing operations 1.45 0.39
Earnings per share, EUR, discontinued operations 0.06 -0.32
Diluted earnings per share, EUR, discontinued operations 0.06 -0.32
Earnings per share, EUR 1.51 0.07
Diluted earnings per share, EUR 1.51 0.07
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Statement of comprehensive income
1
EUR million 2020 2019
Result for the period 247.1 13.3
Other comprehensive income:
-2.4 2.5
Share of other comprehensive income of equity-accounted investees 0.1
4.1 6.1
-0.8 -1.1
Other comprehensive income for the period, net of tax 0.9 7.6
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 248.0 20.9
Total comprehensive income attributable to:
Equity holders of the Parent Company 247.6 19.1
Non-controlling interests 0.5 1.8
1
Statement of comprehensive income includes both continuing and discontinued operations.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Consolidated balance sheet
ASSETS
EUR million Note
31 Dec
2020
31 Dec
2019
NON-CURRENT ASSETS
Property, plant and equipment 4, 6, 10 73.9 78.0
Right-of-use assets 10 186.7 157.0
Investment property 4, 6, 11 7.9 9.1
12 752.7 505.8
Other intangible assets 12 685.7 443.3
Equity-accounted investees 13 2.3 1.9
Other investments 14 4.0 3.9
Deferred tax receivables 18.2 12.6
Trade and other receivables 15.3 13.6
NON-CURRENT ASSETS, TOTAL 1,746.7 1,225.2
CURRENT ASSETS
Inventories 16 45.8 25.4
Income tax receivables 19.4 7.6
Contract assets 3 0.4 0.4
Trade and other receivables 17 120.9 103.8
Cash and cash equivalents 114.6 16.3
CURRENT ASSETS, TOTAL 301.1 153.5
Assets held for sale and discontinued operations 26 0.4 619.2
ASSETS, TOTAL 2,048.3 1,997.9
EQUITY AND LIABILITIES
EUR million Note
31 Dec
2020
31 Dec
2019
EQUITY
Share capital 71.3 71.3
Treasury shares -4.3 -4.6
Fund for invested unrestricted equity 209.8 209.8
-19.0 -16.6
Retained earnings 432.4 269.7
Total equity attributable to the equity holders of the
Parent Company
Non-controlling interests 19.7 21.5
EQUITY, TOTAL 709.9 550.9
NON-CURRENT LIABILITIES
Deferred tax liabilities 140.9 74.6
Pension obligations 7.4 7.1
Provisions 21 0.8 0.6
Financial liabilities 22 317.7 221.3
Lease liabilities 22 163.2 138.4
Contract liabilities 3 3.5 4.2
Trade and other payables 23 2.8 6.5
NON-CURRENT LIABILITIES, TOTAL 636.4 452.8
CURRENT LIABILITIES
Provisions 21 0.9 1.3
Financial liabilities 22 265.0 398.4
Lease liabilities 22 29.4 22.5
Income tax liabilities 22.5 8.4
Contract liabilities 3 148.1 129.7
Trade and other payables 23 235.4 210.4
CURRENT LIABILITIES, TOTAL 701.4 770.8
Liabilities related to assets held for sale and discontinued
operations
26 0.7 223.3
LIABILITIES, TOTAL 1,338.4 1,447.0
EQUITY AND LIABILITIES, TOTAL 2,048.3 1,997.9
40 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Changes in consolidated equity
Equity attributable to the equity holders of the Parent Company
EUR million Note Share capital
Treasury
shares
Fund for
invested
unrestricted
equity
Translation
Retained
earnings Total
Non-
controlling
interests Total
Equity at 1 Jan 2019 71.3 -8.4 209.8 -19.3 353.0 606.4 5.0 611.4
Result for the period 11.5 11.5 1.8 13.3
Other comprehensive income 2.6 5.0 7.6 7.6
Total comprehensive income 2.6 16.5 19.1 1.8 20.9
Share-based compensation 20 -0.4 -0.4 -0.4
Shares delivered 20 3.8 -3.8
Dividends paid -73.4 -73.4 -1.2 -74.5
Total transactions with owners of the company 3.8 -77.5 -73.8 -1.2 -74.9
Acquisitions and other changes in non-controlling
interest
-22.3 -22.3 15.9 -6.4
Total change in ownership interest -22.3 -22.3 15.9 -6.4
Equity at 31 Dec 2019 71.3 -4.6 209.8 -16.6 269.7 529.4 21.5 550.9
Equity at 1 Jan 2020 71.3 -4.6 209.8 -16.6 269.7 529.4 21.5 550.9
Result for the period 246.7 246.7 0.5 247.1
Other comprehensive income -2.4 3.2 0.9 0.9
Total comprehensive income -2.4 249.9 247.6 0.5 248.0
Purchase of treasury shares -2.4 -2.4 -2.4
Share-based compensation 20 -0.4 -0.4 -0.4
Shares delivered 20 2.8 -2.8
Dividends paid -81.6 -81.6 -1.0 -82.6
Total transactions with owners of the company 0.3 -84.8 -84.4 -1.0 -85.4
Acquisitions and other changes in non-controlling
interest
-2.4 -2.4 -1.3 -3.6
Total change in ownership interest -2.4 -2.4 -1.3 -3.6
Equity at 31 Dec 2020 71.3 -4.3 209.8 -19.0 432.4 690.2 19.7 709.9
41 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Consolidated cash ow statement
EUR million Note 2020 2019
OPERATIONS
Result for the period 247.1 13.3
Adjustments
Income taxes 26.5 32.5
Financial expenses 7 16.0 26.7
Financial income 7 -6.9 -3.2
Share of results in equity-accounted investees 13 -1.2 -4.3
Depreciation, amortisation and impairment losses 177.8 266.2
Gains/losses on sales of non-current assets -161.1 -12.4
Other adjustments -3.9 -4.1
Adjustments total 47.1 301.4
Change in trade and other receivables 8.6 19.9
Change in inventories 1.5 3.2
Change in trade and other payables, and provisions -39.3 -41.5
Acquisitions of broadcasting rights, prepublication costs and
-88.0 -83.9
Dividends received 0.5 4.7
Interest paid -9.9 -15.0
-3.7 -2.9
Taxes paid -26.6 -36.2
CASH FLOW FROM OPERATIONS 137.4 163.0
INVESTMENTS
Capital expenditure -42.5 -31.7
Operations acquired 27 -461.3 -236.3
Joint ventures and associated companies acquired 13 -0.7 -0.7
Proceeds from sale of tangible and intangible assets 2.5 2.5
Operations sold 27 606.5 53.4
EUR million Note 2020 2019
Joint ventures and associated companies sold 13 0.1
Loans granted 0.0 -0.4
Repayments of loan receivables 0.3 0.0
Interest received 1.4 0.3
CASH FLOW FROM INVESTMENTS 106.1 -212.8
CASH FLOW BEFORE FINANCING 243.5 -49.7
FINANCING
Contribution by non-controlling interests 0.2
Purchase of treasury shares -2.4
22 -325.8 193.6
22 405.0 250.3
Repayments of other loans 22 -109.3 -289.2
Payment of lease liabilities 22 -29.4 -24.8
Acquisitions of non-controlling interests 27 -8.4
Dividends paid -82.6 -74.5
CASH FLOW FROM FINANCING -144.4 47.3
Change in cash and cash equivalents according to cash
equivalents
-0.4 -0.1
Net increase(+)/decrease(-) in cash and cash equivalents 98.7 -2.6
Cash and cash equivalents at 1 Jan 15.9 18.4
Cash and cash equivalents at 31 Dec 114.6 15.9
Includes continuing and discontinued operations.
sale in the balance sheet 31 December 2020.
42 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Notes to the consolidated
43
2. Operating segments 50
3. Net sales 54
4. Other operating income 58
58
62
7. Financial items 63
63
66
10. Property, plant and equipment and right-of-use assets 67
11. Investment property 69
12. Intangible assets 71
13. Equity-accounted investees 75
14. Other investments 75
75
16. Inventories 75
17. Trade and other receivables, current 76
76
77
20. Share-based payments 78
21. Provisions 82
22. Financial liabilities and lease liabilities 82
23. Trade and other payables 84
24. Contingent liabilities 84
85
26. Assets held for sale and discontinued operations 90
27. Acquisitions and divestments 91
97
99
100
31. Events after the balance sheet date 102
43 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Notes to the consolidated nancial statements
1. Accounting policies for consolidated nancial statements
Corporate information
businesses. Sanoma Learning is the leading European learning company serving over 20 million
students in 11 countries. Its learning products and services enable teachers to develop the talents
methodologies based on deep teacher and student insight and truly understanding their individual
needs. By combining educational technologies and pedagogical expertise, Sanoma Learning
sanoma.com or from the Parent
Basis of preparation of nancial statements
Liability Companies Act.
Financial statements are presented in millions of euros, based on historical cost conventions unless
Applied new and amended standards
a transaction should be accounted for as a business combination or as an asset acquisition. The
and services provided to customers and by removing the reference to an ability to reduce costs.
reinstating prudence as a component of neutrality
removing the probability threshold for recognition and adding guidance on derecognition
44 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
amendments provide practical relief to lessees in accounting for rent concessions arising as a
statements.
Management judgement in applying the most signicant accounting policies and
other key sources of estimation uncertainty
-
allocating acquisition cost of acquired businesses and determining the estimated useful lives
and depreciation methods for property, plant and equipment and amortisation methods for
broadcasting rights, prepublication assets and other intangible assets. In addition, management
assets and pension obligations and provisions. The assumptions are derived from external
performed to determine the impact on carrying amounts. Although these estimates are based on
the accounting policies and notes. Other uncertainties related to management judgement are
presented, as applicable, in the relevant notes.
Consolidation principles
policies.
-
-
acquisition date.
On the date of acquisition, the cost is allocated to the assets and liabilities of the acquired business
by recognising them at their fair value. In business combinations achieved in stages, the interest
measured at fair value at the date of acquiring control. This value has an impact on calculating
combination are measured at fair value on the date of acquisition. The acquisition-related costs are
expensed excluding the costs to issue debt or equity securities. The potential contingent purchase
price is the consideration paid to the seller after the original consolidation of the acquired business
consideration shall be paid or returned is usually dependent on the performance of the acquired
acquisition date and subsequently on each balance sheet date. Changes in the fair value are
presented in income statement.
are accounted for using the equity method. The Group’s share of the strategically important joint
carrying amount of equity-accounted investees is presented on one line in the balance sheet and it
or losses and movements in other comprehensive income of the investee. Dividends received
or receivable from associates and joint ventures are recognised as a reduction in the carrying
amount of the investment.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Joint ventures are entities that are controlled jointly based on a contractual agreement by the
If Sanoma’s share of the losses from an associated company exceeds the carrying value of the
of non-controlling interests is presented in the income statement. The statement of comprehensive
Company and to the holders of non-controlling interests. The amount of equity attributable to
equity holders of the Parent Company and to holders of non-controlling interests is presented as
Foreign currency items
Foreign currency transactions of the Group entities are translated to the functional currency at the
exchange rate quoted on the transaction date. The monetary assets and liabilities denominated in
foreign currencies on the balance sheet are translated into the functional currency at the exchange
rate prevailing on the balance sheet date.
The gains and losses resulting from the foreign currency transactions and translating the monetary
items are recognised in income statement. The exchange rate gains and losses are reported in
The income and expense items in the income statement and in the statement of comprehensive
are translated into euros using the monthly average exchange rates and balance sheets using
other comprehensive income.
accounted investees’ balance sheets are recognised under shareholders’ equity. When a foreign
income statement as part of the gain or loss on disposal.
Government grants
Grants from the government or other similar public entities that become receivable as compen-
sation for expenses already incurred are recognised in the income statement on the period on
in other operating income in income statement. Government grants related to the purchase of
property, plant and equipment or intangible assets are recognised as a reduction of the asset’s
Assets held for sale and discontinued operations
sale rather than through continuing use and a sale is considered highly probable. Such assets
held for sale are no longer depreciated. When equity-accounted investees meet the criteria to be
business or geographical area of operations. In addition, the disposal should be part of a single
coordinated plan to dispose of a separate major line of business or geographical area of opera-
The result for the period of discontinued operations is presented as a separate item in the consol-
idated income statement.
46 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Goodwill and other intangible assets
events.
rights- and if their fair value can be reliably measured. Intangible assets are initially measured at
lives cannot be determined are not amortised but they are subject to annual impairment testing.
In Sanoma, expected useful lives can principally be determined for intangible rights. With regard
The Group recognises the cost of broadcasting rights to TV programmes under intangible assets
and their cost is amortised based on broadcasting runs. The prepublication costs of learning
materials and solutions are recognised in intangible assets and amortised over the useful lives.
from operations.
Publishing rights 2-20 years
Customer relationships 3-20 years
Online sites 3-10 years
Amortisation is calculated using the straight-line method. Recognising amortisation is discon-
Impairment testing
impairment loss is recorded in the income statement. Primarily, the impairment loss is deducted
other non-current assets of the cash-generating unit. The useful life of the asset is re-estimated
-
not reversed beyond the amount the asset had before recognising impairment losses. Impairment
Impairment testing is described in more detail in Note 12.
Property, plant and equipment
impairment losses. The cost includes any costs directly attributable to acquiring the item of PPE.
Any subsequent costs are included in the carrying value of the item of PPE only if it is probable that
Lease premises’ renovation expenses are treated as other tangible assets in the consolidated
balance sheet. Ordinary repairs and maintenance costs are expensed as incurred.
Other tangible assets 3-10 years
Depreciation is calculated using the straight-line method. Land areas are not depreciated. Recog-
47 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Gains and losses from disposing or selling items of PPE are recognised in the income statement
and they are reported in other operating income or expenses.
Investment property
rental yields or for capital appreciation. Investment property is initially measured at cost and
presented as a separate item on the balance sheet. Investment properties include buildings, land
on their nature, such shareholdings are divided into land or buildings.
statements. Fair values are determined by using the yield value method or using the information on
term of the lease period, other conditions of the lease, the location of the premises and the nature
Leases
a period of time in exchange for consideration.
and liabilities for the lease term. The cost of right-of-use asset comprises the amount of initial
measurement of the lease liability, any lease payments made at or before the commencement
date, less any lease incentives and any initial direct costs incurred by the lessee. The asset is
depreciated during the lease term or, if shorter, during its useful life.
In leases of premises there are extension and termination options. The entity considers all
relevant facts and circumstances that create an economic incentive for the lessee to exercise,
or not to exercise, the option, including any expected changes in facts and circumstances from
the commencement date until the exercise date of the option. Lease term is reassessed if there’s
or not to exercise an option previously included in the lease term.
The lease liability is valued at the present value of the unpaid rents at the valuation date
account for each lease component and any associated non-lease components as a single lease
component. Other variable rents included in the lease are treated as an expense for the period.
Rents are discounted at the internal rate of the lease. If the internal rate is not readily determinable,
the company's additional credit interest rate is used.
The right-of-use assets and lease liabilities are presented separately in the balance sheet. The
Sanoma applies the exemption for short-term leases (lease term 12 months or shorter than 12
Inventories
Net realisable value is the estimated selling price, received as part of the normal course of business,
Financial assets
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
are measured at fair value.
measured at amortised cost include loan receivables, trade receivables and cash. According to
measured at amortised cost. Sanoma has adopted the general expected credit loss model for
from initial recognition of the receivable. Sanoma uses provision matrix as a practical expedient
are based on past information on actual credit loss experience, adjusted by current information
Cash and cash equivalents
Financial liabilities
term liabilities unless the Group has an unconditional right to postpone settling of the liability at
liability and are amortised over the remaining term of the issued instrument. A gain or loss arising
are initially recognised at fair value including the transaction costs directly attributable to the
items in the income statement on the period the changes arise.
Derivatives
does not apply hedge accounting.
Derivatives are initially recognised at fair value on the date of entering to a hedging agreement and
they are subsequently measured at their fair value on each balance sheet date. The fair value of
the unrealised and realised gains and losses arising from changes in fair values of the derivatives
Fair value hierarchy
Financial assets and liabilities measured at fair value are divided into three levels in the fair value
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
For assets and liabilities in level 3, the fair values are based on input data that is not based on
Income taxes
statement. Tax related to transactions or other items recognised in other comprehensive income or
directly in equity, are recognised accordingly in other comprehensive income or directly in equity.
balance sheet date. Changes in the applicable tax rate are recorded as changes in deferred tax in
the income statement. Deferred tax assets are recognised to the extent that it appears probable
be utilised.
No deferred tax liability on undistributed retained earnings of subsidiaries has been recognised
-
business combinations.
The amount of current and deferred tax payable or receivable is the best estimate of the tax
Provisions
and a reliable estimate of the amount of this obligation can be made.
and started to implement that plan or announced the matter.
Share-based payments
-
conditions set for receiving the shares are met. Shares in the Restricted Share Plans are delivered to
the duration of the plan until the shares are delivered. In addition to the continuous employment
in full as equity-settled arrangements despite the fact that the employer pays in cash the taxes
The fair value for the equity settled portion has been determined at grant using the fair value
of Sanoma share as of the grant date less the expected dividends paid before possible share
delivery. The fair value for the cash settled portion is remeasured at each reporting date until the
Sanoma share price. Liabilities arising from share-based payments represent estimate of the
expenses until vesting.
A more detailed description of the share-based payments is provided in Note 20.
Revenue recognition
transfers control over a product or service to a customer.
Revenue recognition is described in more detail in Note 3.
Research and development expenditure
Research expenditure is expensed as incurred.
products or services for sale, or fundamentally improving the features of its existing products or
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Development expenditure is either expensed as incurred or recorded as other intangible asset if
it meets the recognition criteria.
Pensions
-
plans and the related pension cover is managed by both pension funds and insurance companies.
paid to insurance companies the Group has no obligation to pay further contributions. All other
obligations or pension assets represent the present value of future pension payments less the fair
obligation is determined by using discount interest rates that are based on high-quality corporate
authorised actuaries.
-
hensive income.
IFRS standards and amendments to be applied later
2. Operating segments
Learning
Sanoma Learning is the leading European learning company serving over 20 million students in
11 countries. Our learning products and services enable teachers to develop the talents of every
learning and teaching platforms for K12, i.e. primary, secondary and vocational education, and
teacher and student insight and truly understanding their individual needs. By combining our
Media Finland
Unallocated/eliminations
In addition to the Group eliminations, the column unallocated/eliminations includes non-core
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
SEGMENTS 2020
EUR million Learning Media Finland
Unallocated /
Eliminations Total
External net sales 1,061.7
Internal net sales 0.0
NET SALES 1,061.7
Depreciation, amortisation and impairment losses -2.0 -176.3
EBIT 66.4 270.1
OPERATIONAL EBIT EXCL PPA ¹ 66.6
Share of results in associated companies -0.4 -0.4
Financial income
Financial expenses
RESULT BEFORE TAXES 261.0
Income taxes -23.2
RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS
Result for the period from discontinued operations
RESULT FOR THE PERIOD 247.1
Capital expenditure 32.6 0.4
107.3 -167.1
Equity-accounted investees 2.3 0.1 2.3
Segment assets 422.3 -132.1
Other assets
Asset held for sale and discontinued operations 0.4
TOTAL ASSETS
Segment liabilities -40.3
Other liabilities
Liabilities related to assets held for sale and discontinued operations 0.7
TOTAL LIABILITIES
1
77.1 70.3
1
-44.4
1
216
1
Non-audited
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
SEGMENTS 2019, RESTATED
EUR million Learning
Media
Finland
Unallocated /
Eliminations Total
External net sales 336.0 0.1
Internal net sales 0.0 0.3 -0.4 0.0
NET SALES 336.0 -0.3
Depreciation, amortisation and impairment losses
EBIT
OPERATIONAL EBIT EXCL PPA ¹ -7.4 137.6
Share of results in associated companies 0.0 0.0
Financial income 3.1 3.1
Financial expenses
RESULT BEFORE TAXES
Income taxes
RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS
Result for the period from discontinued operations
RESULT FOR PERIOD 13.3
Capital expenditure 21.4 30.0
-167.7
Equity-accounted investees 0.1
Segment assets -141.3
Other assets
Asset held for sale and discontinued operations
TOTAL ASSETS
Segment liabilities 200.6
Other liabilities
Liabilities related to assets held for sale and discontinued operations 223.3
TOTAL LIABILITIES 1,447.0
1
-27.0 104.1
1
27.3
1
131.3
1,472
1
Non-audited
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
INFORMATION ABOUT GEOGRAPHICAL AREAS 2020
EUR million Finland
The
Netherlands
Other EU
countries
Other
countries Eliminations Total
External net sales 230.4 17.2 0.0 1,061.7
Non-current assets 642.2 10.2 1,713.2
INFORMATION ABOUT GEOGRAPHICAL AREAS 2019
EUR million Finland
The
Netherlands
Other EU
countries
Other
countries Eliminations Total
External net sales 1.4 0.1
Non-current assets
or more of the Group’s net sales.
operating segments and allocating resources to the segments are based on segments’ EBIT
and operational EBIT excl PPA. Sanoma’s President and CEO acts as the chief operating decision
tax liabilities and deferred tax liabilities. Capital expenditure includes investments in tangible and
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
3. Net sales
Nature of goods and services
information about operating segments, see Note 2.
Learning segment
Sanoma Learning is the leading European learning company serving over 20 million students in
11 countries. Our learning products and services enable teachers to develop the talents of every
learning and teaching platforms for K12, i.e. primary, secondary and vocational education, and
teacher and student insight and truly understanding their individual needs. By combining our
-
Products and
services
Nature of products and services, timing of satisfaction of performance obligations
Educational
books
Educational books
Access
to online
learning
platforms
Access to online learning platforms
Access services are usually paid in advance in monthly, quarterly or annual instalments.
Access to
online teacher
solutions
and school
management
systems
Access to online teacher solutions and school management systems includes revenue
Other
Other sales mainly include physical distribution of learning materials. For learning
services are billed and paid on a monthly basis.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Media Finland segment
Through combining media content and customer data, advertising revenue is generated by
is 12 months or less.
Print sales are generated primarily from circulation sales, both subscriptions and single copy
sales. In addition, print sales include advertising sales. Non-print sales include advertising sales
generated through TV, VOD, radio, online and mobile channels. Also revenue generated from events
For each customer contract, the Group accounts for individual performance obligations separately
Products and
services
Nature of products and services, timing of satisfaction of performance obligations
Advertising
Print advertising
-
discounts are subtracted. Discounts can be agency discounts, generic discounts or volume
TV and radio advertising
Online and mobile advertising is generated through display sales (e.g. banners and
non-display sales are recognised over-time, during the running time of the advertising
revenue is recognised at a point-in-time. Advertising services are usually billed and paid
Subscription
Print subscriptions
Revenue is recognised based on the issue dates of respective products during the contract
annual instalments.
TV subscriptions include consumer subscriptions to VOD. Revenue is recognised over the
in monthly, quarterly or annual instalments.
Single copy
Single copy
and other retail channels. Retailers have a right of return for unsold copies. Revenue is
into account a provision for estimated returns. Single copy are usually billed and paid on
Other B2C
sales
Other B2C sales
consumer announcements and other consumer income. Revenue is recognised at a point-
in-time. Other B2C sales are usually billed and paid on a monthly basis.
Other B2B
sales
Other B2B sales
cards, service sales, commission sales and distribution sales. Based on the nature of
the performance obligations other B2B sales are recognised both at a point-in-time and
over-time. Other B2B are usually billed and paid on a monthly basis.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Disaggregation of revenue
services lines and timing of revenue recognition. The table also includes a reconciliation of the
segments is presented in Note 2.
DISAGGREGATION OF REVENUE 2020
EUR million Learning
Media
Finland
Unallocated/
eliminations Total
Finland
The Netherlands
Poland
Belgium 76.1 76.1
Other companies and
eliminations
Primary geographical
markets
499.7 562.6 -0.5 1,061.7
Learning solutions 377.2 0.0 377.2
Advertising 231.6 -0.3 231.3
Subscription 230.0 0.0 230.0
Single copy
Other -0.2
Major product lines/
services
499.7 562.6 -0.5 1,061.7
Recognition at a point-in-
time
363.0 166.2
Recognition over-time 136.7
Timing of revenue
recognition
499.7 562.6 -0.5 1,061.7
DISAGGREGATION OF REVENUE 2019, RESTATED
EUR million Learning
Media
Finland
Unallocated/
eliminations Total
Finland -0.3
The Netherlands
Poland
Belgium
Other companies and
eliminations
Primary geographical
markets
336.0 576.8 -0.3 912.6
Learning solutions 0.0
Advertising 247.3 -0.1 247.2
Subscription 0.0
Single copy
Other -0.2 102.0
Major product lines/
services
336.0 576.8 -0.3 912.6
Recognition at a point-in-
time
216.6 -0.3
Recognition over-time 70.6 360.2
Timing of revenue
recognition
336.0 576.8 -0.3 912.6
The revenue per country is based on the location of the entity that generates the revenue.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Contract balances
CONTRACT BALANCES
2020 2019
EUR million
Contract
assets
Contract
liabilities
Contract
assets
Contract
liabilities
1 Jan 0.4 133.9 147.2
included in the contract liability
at beginning of the period
-142.1
Increases due to cash received,
excluding amounts recognised
as revenue during the period
Transfers from contract assets
recognised at the beginning of
the period to receivables
-0.4
Increase in contract assets
obligations not yet invoiced
0.4 0.4
31 Dec 0.4 151.6 0.4
invoicing and therefore becoming unconditional. The contract liabilities primarily relate to advance
-
Transaction price allocated to remaining performance obligations
UNSATISFIED PERFORMANCE OBLIGATIONS
EUR million
2021 > 2021 Total
Learning
Total 148.1 3.5 151.6
DISTRIBUTION OF NET SALES BETWEEN GOODS AND SERVICES,
CONTINUING OPERATIONS
EUR million 2020
Restated
2019
Sale of goods 600.7
Rendering of services 461.1 423.6
Total 1,061.7
physical items.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
4. Other operating income
OTHER OPERATING INCOME, CONTINUING OPERATIONS
EUR million 2020
Restated
2019
Technology service fees
Gains on sale of property, plant and equipment
Gains on sale of Group companies and operations 0.3
Gains on sale of investment property 0.2
Rental income from investment property 0.1 0.1
Other rental income
Government grants 0.1 1.4
Other 12.7
Total 207.5 31.0
statements. Although intra-group transactions have been fully eliminated in the consolidated
continuance of these transactions subsequent to the disposal. Consequently recharged centralised
operations.
Group's other rental income is mostly related to sub-leases.
claims related to cancelled festivals due to a coronavirus pandemic.
5. Employee benet expenses
EMPLOYEE BENEFIT EXPENSES, CONTINUING
OPERATIONS
EUR million 2020
Restated
2019
Wages, salaries and fees -242.7
Equity-settled share-based payments -3.7
-30.0
-2.3 -1.6
Other social expenses -16.2 -13.1
Total -294.9 -242.6
based payments are described in Note 20.
Post-employment benets
-
In Finland the Group has a pension fund responsible for the statutory pension cover for certain
by insurance companies.
old-age, disability and surviving dependent pensions. The supplementary pension schemes
average salary.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
member of the board.
The board of the Finnish pension fund sets out on annual basis the strategic investment policy and
plan. The Investment Committee of Sanoma Group is assisting the board and delegate of the pension
the calculated assumption. A pension expense development forecast has been prepared for the
very rapidly.
statutory retirement age by supplementary pensions.
PENSION COSTS RECOGNISED IN THE INCOME STATEMENT
EUR million 2020 2019
Current service costs
Net interest 0.0 0.1
Past service cost -0.4 -0.1
Administration costs -0.1 -0.1
Total -2.3 -1.7
Includes continuing and discontinued operations.
NET DEFINED BENEFIT PENSION LIABILITIES (ASSETS) IN THE BALANCE SHEET
EUR million 2020 2019
7.4 7.1
1
-6.4
1
60 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
EUR million
obligation
Fair value of
plan assets Total
1 Jan 2019 -1.4
Current year service cost
Interest cost/income 2.3 -2.3 -0.1
Past service cost 0.1 0.1
Administration cost 0.1 0.1
Total recognised in the result for the
period
-2.2 1.7
assumptions
Experience adjustments 0.6 0.6
Return on plan assets excluding interest
income
-22.6 -22.6
Total recognised in other comprehensive
income
-22.6 -6.1
Contributions by the employer 0.0 0.0
Contributions by plan participants 0.4 -0.4
Other changes -0.1 0.1
31 Dec 2019 166.2 -172.0 -5.8
EUR million
obligation
Fair value of
plan assets Total
1 Jan 2020 166.2 -172.0 -5.8
Current year service cost
Interest cost/income -1.0 0.0
Past service cost 0.4 0.4
-1.3 1.3
Administration cost 0.1 0.1
Total recognised in the result for the
period
0.4 2.3
assumptions
Experience adjustments 0.7 0.7
Return on plan assets excluding interest
income
Total recognised in other comprehensive
income
4.1
Group companies acquired 0.3
Group companies sold -1.4 1.6 0.2
Contributions by the employer 0.4 0.4
Contributions by plan participants
31 Dec 2020 168.7 -175.1 -6.4
61 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
NET DEFINED BENEFIT PENSION LIABILITIES (ASSETS) IN THE BALANCE SHEET 2020
EUR million Finland Belgium Total
Present value of funded obligations 14.0
Fair value of plan assets -167.6 -7.4
Total -12.9 6.6 -6.4
NET DEFINED BENEFIT PENSION LIABILITIES (ASSETS) IN THE BALANCE SHEET 2019
EUR million Finland Belgium Total
Present value of funded obligations 166.2
Fair value of plan assets -163.0 -172.0
Total -11.9 6.1 -5.8
2.0 million.
PLAN ASSETS BY MAJOR CATEGORIES
% 2020 2019
Equity instruments 46.2
Bonds and debentures 46.7
Other items 7.6 6.1
Cash 1.0
Total 100.0 100.0
PRINCIPAL ACTUARIAL ASSUMPTIONS AT 31 DEC
1
% 2020 2019
Discount rate 0.4 0.6
Expected future salary increase
Expected future pension increases 0.7
1
Assumptions regarding future mortality have been based on published statistics and mortality
LONGEVITIES AT 31 DEC
Years 2020 2019
21.4 21.4
Females
23.7 23.7
Females
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions,
SENSITIVITY ANALYSIS AT 31 DEC
2020 2019
% Increase Decrease Increase Decrease
-6.4 7.2 -6.3 7.2
Expected future salary increase
1.0 -1.0 1.0 -1.0
Expected future pension
6.7 -6.2 6.6 -6.2
Future mortality (1 year
4.0
62 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
6. Materials and services and other operating expenses
MATERIALS AND SERVICES, CONTINUING OPERATIONS
EUR million 2020
Restated
2019
Paper costs -26.2
Purchased transport and distribution service -71.2
Purchased printing
Sales and commission costs -14.7
Editorial subcontracting -11.7 -10.0
Royalties -37.0
Other purchased services
Other -26.4
Total -356.5
OTHER OPERATING EXPENSES, CONTINUING OPERATIONS
EUR million 2020
Restated
2019
Operating costs of premises -7.2
Rents -2.2 -2.3
Professional fees -22.4
Travel expenses -3.1
Other -0.6 -14.6
Total -171.9
during the comparative year.
contracts.
EUR million 2020
Restated
2019
Expense relating to short-term leases -1.2
-0.4 -0.3
Expense relating to variable lease payments not included in lease
liabilities
-0.7 -0.7
AUDIT FEES
EUR million 2020
Restated
2019
Statutory audit -1.0 -1.0
Audit related services 0.0 -0.1
Tax services 0.0 0.0
Other non-audit services -0.4
Total -1.6 -1.6
auditor.
auditors' statements, tax services and other services.
63 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
8. Income taxes and deferred taxes
INCOME TAXES, CONTINUING OPERATIONS
EUR million 2020
Restated
2019
Income taxes on operational income -27.7 -22.2
Income taxes from previous periods 4.3 1.6
Change in deferred tax 0.2
Tax expense in the income statement -23.2
INCOME TAX RECONCILIATION AGAINST LOCAL TAX RATES, CONTINUING
OPERATIONS
EUR million 2020
Restated
2019
Result before taxes 261.0
-1.2 -1.0
Non-taxable income 2.2
Non-deductible expenses -3.2 -6.1
Tax relating to previous accounting periods 4.3 1.6
Change in deferred tax due to change in tax rate 1.3
0.0 0.1
Other items -0.1 0.6
Income taxes in the income statement -23.2
8.9 21.6
tax legislation is tax-exempt.
7. Financial items
FINANCIAL ITEMS, CONTINUING OPERATIONS
EUR million 2020
Restated
2019
Dividend income 0.1 0.1
0.3
change in fair value
0.0 0.0
Exchange rate gains 1.6
1.0
Financial income total 6.9 3.1
cost
-4.4 -11.6
Interest expenses on leases
change in fair value
-0.2
Impairment losses on other investments -0.1
Exchange rate losses -3.7
-4.3
Financial expenses total -15.7
Total -8.8
64 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
DEFERRED TAX RECEIVABLES AND LIABILITIES 2020
EUR million At 1 Jan
Recorded in
the income
statement ¹
Operations
acquired/ sold
Recorded in other
comprehensive
income
Translation
At 31 Dec
Deferred tax receivables
1.4 0.4 0.1 7.7
PPE and intangible assets 1.7 0.3 0.3 0.6
Inventories 0.1 0.2 0.0 0.3
Trade and other receivables 0.2 -0.1 0.2 0.2
Provisions 4.1 -0.3 0.1
1.7 0.1 0.0 -0.1
Other items -0.7 0.4
Total 14.4 1.0 3.6 0.0 1.3 20.2
-2.0
Total 12.6 18.2
Deferred tax liabilities
PPE and intangible assets 73.3 2.0
Inventories 0.0 0.0 0.0
-0.1 0.0
Other items 0.3 0.4
Total 76.4 0.0
-2.0
Total 74.6 140.9
1
Operations acquired/sold includes mainly acquisition of Santillana.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
DEFERRED TAX RECEIVABLES AND LIABILITIES 2019
EUR million At 1 Jan
Recorded in
the income
statement
1
Operations
acquired/ sold
Recorded in other
comprehensive
income
Translation
At 31 Dec
Deferred tax receivables
3.4 -1.7 -1.7
PPE and intangible assets 2.0 1.7
Inventories 0.1 0.0 0.0 0.1
Trade and other receivables 0.2 0.0 0.2
Provisions 0.7 -2.1 4.1
0.1 -0.2 -0.1 1.7
Other items 0.1 1.4 0.2
Total 13.1 -1.3 7.2 -0.2 14.4
-3.2
Total 12.6
Deferred tax liabilities
PPE and intangible assets 33.6 -4.0 73.3
Inventories 0.2 -0.2
2.1 -0.4 1.0 -0.2
Other items 0.1 -0.3 -0.1
Total 36.0 -4.7 1.0 76.4
-3.2
Total 32.7 74.6
1
Includes the change from continuing operations EUR 2.7 million and from discontinued operations EUR 0.6 million, total EUR 3.3 million.
66 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
TAX LOSSES
Tax losses
carried forward
Recognised
deferred tax asset
Unrecognised
deferred tax asset
EUR million 2020 2019 2020 2019 2020 2019
1.3 0.1 1.3 1.0
6.6 0.4 0.2 0.3 1.0
No expiry 7.1 6.2 1.4 2.0
Total 46.1 7.7 2.6
Includes continuing and discontinued operations.
9. Earnings per share
Undiluted earnings per share is calculated by dividing result for the period attributable to the
EARNINGS PER SHARE
2020
Restated
2019
Result attributable to the equity holders of the Parent Company,
EUR million, continuing operations
237.4 63.1
Result attributable to the equity holders of the Parent Company,
EUR million, discontinued operations
Result attributable to the equity holders of the Parent Company,
EUR million
246.7
163,042
Earnings per share, EUR, continuing operations 1.46
Earnings per share, EUR, discontinued operations 0.06 -0.32
Earnings per share, EUR 1.51 0.07
DILUTED EARNINGS PER SHARE
2020 2019
continuing operations
237.4 63.1
discontinued operations
246.7
163,042
Diluted average number of shares, thousands
Diluted earnings per share, EUR, continuing operations
Diluted earnings per share, EUR, discontinued operations 0.06 -0.32
Diluted earnings per share, EUR 1.51 0.07
Information on share plans is presented in Note 20. For more information on shares and share-
67 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
10. Property, plant and equipment and right-of-use assets
PROPERTY, PLANT AND EQUIPMENT 2020
EUR million Land and water
Buildings and
structures
Machinery and
equipment Rental books
Other tangible
assets
Advance
payments Total
Acquisition cost at 1 Jan 0.6 20.4 1.1
Increases 0.0 3.3 10.7 1.3 17.2
Acquisition of operations 1.6 0.0 0.0 7.1
Decreases -0.1 0.0
Disposal of operations -0.4 0.0 -0.4
2.3 0.3 -1.3 1.3
Transfer to assets held for sale 0.0 0.0
0.0 -0.1 -0.4 -0.1 0.0 -0.6
Acquisition cost at 31 Dec 0.6 311.3
Accumulated depreciation and impairment losses at 1 Jan -11.3 -6.4
Decreases, disposals and acquisitions -0.2 -2.4 -0.1
Depreciation for the period -0.3 -7.1 -13.2
Impairment losses for the period -0.1 0.0 -0.6
0.0 -1.1 0.0 -1.1
Transfer to assets held for sale 0.0 0.0
0.0 0.0 0.4 0.1
Accumulated depreciation and impairment losses at 31 Dec -0.1 -12.2 -14.7 -237.3
Carrying amount at 31 Dec 2020 0.4 7.5 17.2 40.3 7.7 0.8 73.9
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
PROPERTY, PLANT AND EQUIPMENT 2019
EUR million Land and water
Buildings and
structures
Machinery and
equipment Rental books
Other tangible
assets
Advance
payments Total
Acquisition cost at 31 Dec 0.6 24.0
Acquisition cost at 1 Jan 0.6 24.0 233.7
Increases 3.0 0.7 1.0
Acquisition of operations 0.0 3.2
Decreases -0.2 -10.1 -10.3
Disposal of operations -0.2 -0.1 -1.1
0.3 0.1 -0.4
Transfer to assets held for sale -40.7
0.0 0.0 0.1 0.0 0.0 0.1
Acquisition cost at 31 Dec 0.6 20.4 1.1
Accumulated depreciation and impairment losses at 31 Dec -16.4 -214.6
Accumulated depreciation and impairment losses at 1 Jan -16.4 -213.7
Decreases, disposals and acquisitions -2.6 -4.0
Depreciation for the period -0.3 -6.6 -3.7 -2.6 -13.3
Impairment losses for the period 0.0 0.0
Transfer to assets held for sale
-0.1 -0.1 0.0 -0.2
Accumulated depreciation and impairment losses at 31 Dec -11.3 -6.4
Carrying amount at 31 Dec 2019 0.6 6.9 19.1 42.8 7.5 1.1 78.0
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Right-of-use assets
DEPRECIATION OF RIGHT-OF-USE ASSETS, CONTINUING OPERATIONS
EUR million 2020 2019
Depreciation for the period
Buildings -23.6
Vehicles -2.0
Total -28.3 -20.4
CARRYING AMOUNT OF RIGHT-OF-USE ASSETS
EUR million 31.12.2020 31.12.2019
Carrying amount
Buildings
24.1
Vehicles
Total 186.7 157.0
The group’s leasing activities
end of the contract term or terminate the contract during the lease term. The Group assesses at the
not to recognise right-of-use assets and lease liabilities for these leases. Also short-term leases
are reported as expense in income statement.
Lease liabilities are presented in Note 22.
11. Investment Property
INVESTMENT PROPERTY 2020
EUR million
Land and
water
Buildings
and
structures Total
Acquisition cost at 1 Jan
Increases 0.0 0.0
Decreases -1.2 -1.2
Acquisition cost at 31 Dec 7.7 13.6
Accumulated depreciation and impairment
losses at 1 Jan
Accumulated depreciation and impairment
losses at 31 Dec
Carrying amount at 31 Dec 2020 7.7 0.2 7.9
Fair values at 31 Dec 2020 19.4 0.2 19.6
INVESTMENT PROPERTY 2019
EUR million
Land and
water
Buildings
and
structures Total
Acquisition cost at 1 Jan
Decreases -1.6 -2.1
Acquisition cost at 31 Dec
Accumulated depreciation and impairment
losses at 1 Jan
-6.6 -6.6
Decreases
Depreciation for the period -0.1 -0.1
Accumulated depreciation and impairment
losses at 31 Dec
Carrying amount at 31 Dec 2019 8.9 0.2 9.1
Fair values at 31 Dec 2019 20.9 0.2 21.1
70 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
The fair values of investment property have been determined by using either the yield value method
OPERATING EXPENSES OF INVESTMENT PROPERTY
EUR million 2020
Restated
2019
Investment property, rental income 0.0
Investment property, no rental income 0.0 0.0
Total 0.0 0.0
RENTAL INCOME OF INVESTMENT PROPERTY
EUR million 2020
Restated
2019
Rental income of investment property 0.1 0.1
71 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
12. Intangible assets
INTANGIBLE ASSETS 2020
EUR million Goodwill Immaterial rights
Prepublication
rights
Other intangible
assets Advance payments Total
Acquisition cost at 1 Jan 334.3
Increases 24.7 30.2 6.1 113.7
Acquisition of operations
Decreases -0.2
Disposal of operations -16.4 -0.7 -0.7 -26.2
-2.2 -0.6 -0.3
Transfer to assets held for sale -1.2 -3.0 -4.2
0.3 -0.6 -2.0 -0.2 -3.3
Acquisition cost at 31 Dec 474.7 23.0
Accumulated amortisation and impairment losses at 1 Jan
Decreases, disposals and acquisitions -4.2
Amortisation for the period -61.3 -42.1 -124.2
Impairment losses for the period -1.7 -0.3 -0.1 -2.0
0.1 -0.6 -0.4
Transfer to assets held for sale 0.6 2.1
0.2 0.4 2.4
Accumulated amortisation and impairment losses at 31 Dec -302.7
Carrying amount at 31 Dec 2020 752.7 171.9 79.6 411.2 23.0 1,438.4
72 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
INTANGIBLE ASSETS 2019
EUR million Goodwill Immaterial rights
Prepublication
rights
Other intangible
assets Advance payments Total
Acquisition cost at 1 Jan 1,327.3
Increases 62.1 23.2 4.4
Acquisition of operations 214.3
Decreases -0.3 -43.1
Disposal of operations -12.4
-20.1 -2.6 -4.2
Transfer to assets held for sale
1
-161.7 -3.6 -1,040.1
-0.1 0.1 0.1 0.0 0.0 0.1
Acquisition cost at 31 Dec 334.3
Accumulated amortisation and impairment losses at 1 Jan -421.1
Decreases, disposals and acquisitions -27.4
Amortisation for the period -20.1 -30.1
Impairment losses for the period -2.2 -0.7 -2.2
-1.4 6.7
Transfer to assets held for sale
1
333.6 471.4
0.1 0.0 -0.2 0.0 -0.1
Accumulated amortisation and impairment losses at 31 Dec
Carrying amount at 31 Dec 2019 505.8 101.3 65.9 257.7 18.4 949.1
1
discontinued operations can be found in note 26.
assets.
73 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Impairment losses recognised from immaterial rights and other intangibles assets
there is any indication that these intangible assets may be impaired. If any such indication exists,
the recoverable amount of the asset is estimated by determining the present value of future cash
-
ments in the Sanoma Learning SBU mainly related to outdated learning solutions. In the compa-
rable year, the impairment of corporate intangible assets related to ICT legacy systems.
Allocation of goodwill and intangible assets with indenite useful life
CARRYING AMOUNTS OF GOODWILL IN THE CGUS
EUR million 2020 2019
Sanoma Learning 421.1
CGUs, total 752.7
Impairment losses recognised from goodwill
-
Methodology and assumptions used in impairment testing
in Use is used as the recoverable amount. The recoverable amount is determined based on the
income tax assets and liabilities (including deferred tax liabilities related to previous purchase
estimates are based on management approved strategic plans at the time of testing, including
On 31 December 2020, Sanoma completed the acquisition of Santillana Spain, a leading Spanish
provider of K12 learning materials. Santillana Spain is reported as part of Sanoma Learning SBU.
Learning carrying amount to be tested and the Sanoma Learning CGU recoverable amount.
plans and forecasts made annually in each business unit and approved by the Sanoma Executive
assumptions are based on past experience, the assessment of the SBU and Group management
as the impact of Sanoma’s transformation strategy and cost savings initiatives.
THE TERMINAL GROWTH RATE USED IN CALCULATION OF THE RECOVERABLE AMOUNT
% 2020 2019
Sanoma Learning 1.0 1.6
-1.1 -1.4
74 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
THE DISCOUNT RATE USED IN CALCULATION OF THE RECOVERABLE AMOUNT
%
2020
Post-tax
2019
Post-tax
Sanoma Learning
-
ters and updates the WACC accordingly. In impairment test calculations, capital expenditure is
assumed to comprise normal replacement investments, and foreign exchange rates are based
on euro rates at the time of testing.
Sensitivity analysis of the impairment testing
EXCESS OF RECOVERABLE AMOUNT IN RELATION TO CARRYING AMOUNT
% 2020 2019
Sanoma Learning
and the discount rate. According to management’s estimate, the carrying amount of the segment
post-tax discount rate rises above 14.0%. These estimates exclude simultaneous changes in
other variables.
-
ability and the discount rate. According to management’s estimate, the carrying amount of the
other variables.
The coronavirus pandemic has impacted, and is expected to continue to impact, certain parts of
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
13. Equity-accounted investees
INTERESTS IN JOINT VENTURES AND ASSOCIATED COMPANIES
EUR million 2020 2019
Interests in joint ventures 1.2 1.1
Interests in associated companies 1.1
Total 2.3
Joint ventures
INTERESTS IN JOINT VENTURES
EUR million 2020 2019
Carrying amount at 1 Jan 1.1 17.0
Share of total comprehensive income 4.4
Dividends received -0.4
Transfer to assets held for sale
0.0
Carrying amount at 31 Dec 1.2 1.1
Associated companies
-
INTERESTS IN ASSOCIATED COMPANIES
EUR million 2020 2019
Carrying amount at 1 Jan 1.4
Share of total comprehensive income -0.4 0.0
Dividends received -0.1
Increases 0.7 0.7
Transfer to assets held for sale 0.0
Other changes
1
-1.3
Carrying amount at 31 Dec 1.1 0.8
1
14. Other investments
EUR million 2020 2019
Other investments, non-current 4.0
Other investments mainly include investments in shares, and the Group does not intend to sell
level 3.
15. Trade and other receivables, non-current
EUR million 2020 2019
Financial assets at amortised cost
Loan receivables 0.4 0.4
Other receivables 1.1 0.4
Accrued income 0.1
1
12.6
Total 15.3 13.6
1
repayment plans.
16. Inventories
EUR million 2020 2019
2.6
2.0
Finished products/goods
Other 1.1
Total 45.8
76 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
17. Trade and other receivables, current
EUR million 2020 2019
Financial assets at amortised cost
Trade receivables
1
70.4
Other receivables 13.7 13.1
Financial assets at fair value
Accrued income
Advance payments 3.1
Other receivables 1.2 2.0
Total 120.9
1
Accrued income
18. Cash and cash equivalents
CASH AND CASH EQUIVALENTS IN THE BALANCE SHEET
EUR million 2020 2019
16.2
Deposits 0.1 0.1
Total 114.6 16.3
carrying amounts.
CASH AND CASH EQUIVALENTS IN THE CASH FLOW STATEMENT
EUR million 2020 2019
Cash and cash equivalents in the balance sheet 114.6 16.3
-7.4
Cash and cash equivalents of discontinued operations
Total 114.6
77 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
19. Equity
Number of shares Share capital and funds, EUR million
All shares Treasury shares Total Share capital Treasury shares
Fund for invested
unrestricted equity Total
71.3 272.6
Shares delivered
At 31 Dec 2019 163,565,663 -549,140 163,016,523 71.3 -4.6 209.8 276.4
Purchase of treasury shares -304,000 -304,000 -2.4 -2.4
Shares delivered 324,163 324,163
At 31 Dec 2020 163,565,663 -528,977 163,036,686 71.3 -4.3 209.8 276.7
has no nominal value and no accountable par is in use. The shares have been fully paid.
Treasury shares
the Group did not purchase shares.
Fund for invested unrestricted equity
The fund for invested unrestricted equity includes other equity-related investments and that part
decision.
Translation dierences
of foreign group companies from their operational currencies into euros.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Restricted Share Plan
and managers of Sanoma Corporation and its subsidiaries. The conditions and the issuance of the
The Board of Directors of Sanoma Corporation has on 6 February 2017 approved a share-based
and managers of Sanoma Corporation and its subsidiaries. The conditions and the issuance of
and managers of Sanoma Corporation and its subsidiaries. The conditions and the issuance of
and vesting is subject to meeting service condition.
20. Share-based payments
Performance share plan and restricted share plan
The Performance Share Plan and the Restricted Share Plan form the long-term part of the remu-
Sanoma and its subsidiaries. The purpose of the Performance Share Plan and the Restricted Share
to increase shareholder value and to commit to the company.
Performance Share Plan
The Board of Directors of Sanoma Corporation has on 7 February 2013 approved a share-based
managers of Sanoma Corporation and its subsidiaries. The conditions and the issuance of the
Human Resources Committee’s proposal. In general, Performance Shares vest over 3-year period
and vesting is subject to meeting Group performance targets set by the Board of Directors for
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Basic information
Plan Performance Share Plan Restricted Share Plan
Instrument
Performance
Share Plan
Performance
Share Plan
Performance
Share Plan
Performance
Share Plan
Performance
Share Plan
Restricted
Share Plan
1
Restricted
Share Plan
Restricted
Share Plan
Total/
Average
Initial amount, gross pcs (includes share and cash
Initial allocation date 6.2.2017 6.2.2020 6.2.2017
30.4.2020 30.4.2021 30.4.2022 30.4.2023 30.4.2022
3.2 3.2 3.2 3.2 3.2 3.2 2.2 3.3 3.2
Remaining contractual life, yrs Expired Expired 0.3 1.3 2.3 Expired Expired 1.3 1.3
Number of persons at the end of the reporting year 131 4
Payment method
Equity and
cash
Equity and
cash
Equity and
cash
Equity and
cash
Equity and
cash
Equity and
cash
Equity and
cash
Equity and
cash
1
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Changes Performance Share Plan Restricted Share Plan
Performance
Share Plan
Performance
Share Plan
Performance
Share Plan
Performance
Share Plan
Performance
Share Plan
Restricted
Share Plan
1
Restricted
Share Plan
Restricted
Share Plan
Total/
Average
1 Jan 2019
Outstanding at the beginning of the reporting
period
692,160 684,651 537,116 140,500 150,000 2,204,427
Changes during the period
Granted 677,400
Forfeited
Exercised
31 Dec 2019
Outstanding at the end of the period 0 665,076 486,577 620,625 0 0 44,250 1,816,528
1 Jan 2020
Outstanding at the beginning of the reporting
period
665,076 486,577 620,625 0 44,250 1,816,528
Changes during the period
Granted
Forfeited 347,300
Exercised
31 Dec 2020
Outstanding at the end of the period 0 432,200 526,266 168,738 44,250 1,171,454
1
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Fair value determination
Liabilities arising from share-based payments at the end of the period represent the amount
the Sanoma share price.
The fair value for the equity settled portion has been determined at grant using the fair value of
Sanoma share as of the grant date less the expected dividends paid before possible share delivery.
The fair value is expensed until vesting.
VALUATION PARAMETERS FOR INSTRUMENTS GRANTED DURING PERIOD
EUR 2020 2019
Share price at grant
Share price at reporting period end 13.74
Expected dividends pa.
Fair value of the equity-settled portion at grant 6.76
EFFECT OF SHARE-BASED INCENTIVES ON THE RESULT AND FINANCIAL POSITION
DURING THE PERIOD, CONTINUED OPERATIONS
EUR million 2020 2019
3.4 3.3
3.2 3.3
Liabilities arising from share-based payments at the end of the period 0.2 0.2
At the end of the period the estimated future cash payment to be paid to the tax authorities from
acquisition of all the shares of itslearning AS, Sanoma has established a management investment
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
21. Provisions
CHANGES IN PROVISIONS
EUR million
Restructuring
provisions
Other
provisions Total
At 1 Jan 2020 1.6 0.4
0.0 0.0
Acquisition of operations
Increases 0.4 0.1
Amounts used -0.7 -0.4 -1.0
Unused amounts reversed 0.0 -0.1 -0.1
At 31 Dec 2020 1.2 0.5 1.7
CARRYING AMOUNTS OF PROVISIONS
EUR million 2020 2019
Non-current 0.6
Current 1.3
Total 1.7
Provisions are based on best estimates on the balance sheet date. Other provisions include
are not material at the Group level.
22. Financial liabilities and lease liabilities
EUR million 2020 2019
200.0
Lease liabilities 163.2
Other liabilities 21.3
Total 480.9
Commercial papers 341.2
Lease liabilities
Other liabilities 0.0 0.1
Total 294.4
Total 775.3
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
RECONCILIATION OF MOVEMENT OF LIABILITIES TO CASH FLOW ARISING FROM
FINANCIAL ACTIVITIES
EUR million
Non-current
liabilities
Current
liabilities
Lease
liabilities Total
Non-current
other
liabilities Total
16.1
111.2 43.6 130.0 0.0 130.0
Acquisition of operations 0.3
Disposal of operations
0.0 0.0 0.0 0.0 0.1
Other non-cash movements 4.2 41.1
At 31 Dec 2019 227.9 400.7 189.2 817.9 10.7 828.6
Transfer to liabilities related to assets held for sale -6.6 -2.3 -37.2
In the balance sheet 31 Dec 2019 221.3 398.4 161.0 780.7 10.7
1 Jan 2020 221.3 161.0 10.7
100.0 -4.2
Acquisition of operations 63.3
-0.2 -0.2 -0.1 -0.3
Other non-cash movements -3.7 -7.7 7.3 -4.0 -13.3
At 31 Dec 2020 317.7 265.0 192.7 775.3 6.4 781.7
Transfer to liabilities related to assets held for sale -0.1 -0.1
In the balance sheet 31 Dec 2020 317.7 265.0 192.6 775.3 6.4
Includes continuing and discontinued operations
Group’s lease activities, please see Note 10.
Loans from nancial institutions
outstanding at year end. Loans are valued at amortised cost.
Commercial papers
for short-term liquidity needs. Commercial papers are valued at amortised cost, and transaction
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
24. Contingent liabilities
EUR million 2020 2019
Contingencies for own commitments
Pledges 1.4
Other items
Total 25.6 16.4
Other commitments
Royalties 6.0
17.0 22.6
Other items 36.1
Total 55.6
Total 81.2
NON-CANCELLABLE MINIMUM LEASE PAYMENTS TO BE RECEIVED BY MATURITY
EUR million 2020 2019
Not later than 1 year 4.1 4.6
3.4 6.1
0.0 0.1
Total 7.5
head lease.
Disputes and litigations
by approximately EUR 20 million value added tax. The amount does not include potential penalties
23. Trade and other payables
EUR million 2020 2019
Non-current
Accrued expenses 2.0 1.6
Total 2.8
Current
Trade payables
Other liabilities 30.6 23.4
Derivatives, non-hedge accounted
1
0.1 0.1
Accrued expenses
Advances received 0.0
Total 235.4 210.4
Total 238.3
1
Accrued expenses
Accrued expenses mainly consisted of accrued personnel expenses, royalty liabilities and accruals
related to common business activities.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Adjustment Board. Sanoma has not made any provisions related to the matter.
The Group is periodically involved in incidental litigation or administrative proceedings primarily
arising in the normal course of business. Sanoma feels that its gross liability, if any, under any
25. Financial risk management
Sanoma’s treasury operations are managed centrally by the Group Treasury. Operating as
a counterparty to the Group’s operational units, Group Treasury is responsible for managing
Treasury Policy.
Group's earnings.
Interest rate risks
of the Treasury Policy. According to the Treasury Policy interest rate derivatives may also be utilised.
LOAN PORTFOLIO BY INTEREST RATE
EUR million 2020 2019
Floating-rate loans
Total 565.4
Average duration, years 0.3 0.2
Average interest rate, % 1.0 0.7
Interest sensitivity, EUR million
1
2.6 3.6
1
Interest rate sensitivity is calculated by assuming a one percentage point increase in interest rates. The
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Currency risks
related to intra-Group loans.
balance sheet items of foreign subsidiaries into euros. Business operations outside the euro area
of consolidated net sales of continuing operations and mainly consist of revenues in Polish zloty,
Derivative instruments
Nominal values of derivative instruments
includes gross nominal values of all active agreements. The outstanding nominal value is not
FAIR VALUES OF DERIVATIVE INSTRUMENTS
EUR million 2020 2019
Forward currency exchange contracts
- Outside hedge accounting
Negative fair values -0.1 -0.1
Liquidity risks
spreading loan repayment programmes over a number of calendar years. The Group’s committed
In addition, the Sanoma Group Treasury Policy sets minimum requirements for liquidity reserves.
The corona virus pandemic did not have any material impact on the funding sources or general
THE GROUP’S FINANCING PROGRAMMES IN 2020
EUR million
Amount of
limits
Unused
credit lines
Syndicated RCF 300.0 300.0
Syndicated term loan
Bridge facility 200.0
Commercial paper programmes 1,100.0
Current account limits 47.0 47.0
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
purposes. Sanoma signed an additional EUR 100 million Revolving Credit Facility in November
the requirements of all covenants.
FINANCIAL LIABILITIES
2020 2019
EUR million
Carrying
amount
1
Undrawn from
limits Total
Carrying
amount
1
Undrawn
from limits Total
300.0 400.0
Commercial paper programmes 341.2
Lease liabilities 161.0 161.0 161.0
Other interest-bearing liabilities 21.4 21.4 21.4
Trade payables and other liabilities
2
100.2 100.2 100.2
Derivatives
-2.6 -2.6 -2.6
2.7 2.7 2.7
Total 875.6 878.7 300.0 1,178.7 869.0 869.7 400.0 1,269.7
1
The estimate of the interest liability is based on the interest level at the balance sheet date.
2 Trade payables and other liabilities do not include accrued expenses and advances received.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
MATURITY OF FINANCIAL LIABILITIES 2020
EUR million 2021 2022 2023 2024 2025 2026– Total
Commercial paper programmes
Lease liabilities 27.3 20.6
Other interest-bearing liabilities
Trade payables and other
liabilities
1
0.2 0.2 100.2
Derivatives
-2.6 -2.6
2.7 2.7
Total 415.1 102.5 264.9 20.6 17.8 57.8 878.7
1
Trade payables and other liabilities do not include accrued expenses and advances received.
MATURITY OF FINANCIAL LIABLITIES 2019
EUR million 2020 2021 2022 2023 2024 Total
100.0
Commercial paper programmes
Lease liabilities 21.6 20.6 161.0
Other interest-bearing liabilities 21.4 21.4
Trade payables and other
liabilities
1
Derivatives
Total 526.7 76.1 70.6 117.8 17.5 60.9 869.7
1
Trade payables and other liabilities do not include accrued expenses and advances received.
Credit risks
related to their businesses.
of the receivables. Sanoma uses a provision matrix to measure expected credit losses of trade
loss experience. These rates are adjusted by current information and future expectations on
credit losses. For the Learning SBU, management currently considers the impact of the corona
virus pandemic to be very limited and not material, mainly due to the fact that the majority of the
customers are B2B customers funded by state, regional or municipal governments. With respect to
-
The carrying amounts of trade receivables and other receivables best indicate the amount that
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
THE AGING OF TRADE RECEIVABLES
2020 2019
EUR million Gross
Weighted
average loss
rate (%) Impairment Net Gross
Weighted
average loss
rate (%) Impairment Net
Not due 0.0 0.0 0.0
Past due 1-30 days 0.3 -0.1 0.4 0.0
Past due 31-120 days 10.0 1.1 -0.1 6.3 4.4 -0.3 6.1
2.3 6.4 -0.1 2.1 0.6 41.1 -0.3 0.4
7.6 -0.2 2.6 71.7 -0.6 0.2
Past due more than 1 year -4.3 3.4 -3.0 0.3
Total 90.6 -4.9 85.8 74.6 -4.2 70.4
Capital risk management
and prepublication rights are deducted for the reporting period.
NET DEBT
EUR million 2020 2019
Interest-bearing liabilities
Cash and cash equivalents 114.6 23.2
Total 660.7
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
26. Assets held for sale and discontinued operations
-
these transactions subsequent to the disposal.
INCOME STATEMENT OF DISCONTINUED OPERATIONS
EUR million 2020
Restated
2019
NET SALES 101.5
Other operating income 1.0
Other operating expenses -21.6 -76.4
Share of results in joint ventures 1.1 4.0
Depreciation, amortisation and impairment
losses
-116.4
EBIT 13.0
Financial income 0.0 0.1
Financial expenses -0.3
RESULT BEFORE TAXES 12.6
Income taxes -3.3 -14.6
RESULT FOR THE PERIOD FROM
DISCONTINUED OPERATIONS
9.3
CASH FLOWS RELATED TO DISCONTINUED OPERATIONS
EUR million 2020
Restated
2019
-40.0
63.7
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
EUR million 2020 2019
Property, plant and equipment and right-of-use assets
1
Other intangible assets 27.4
Equity-accounted investees
Non-current trade and other receivables
Deferred tax receivables
Inventories
Income tax receivables
Trade and other receivables 0.4 76.4
Contract assets
Cash and cash equivalents
Total 0.4
1
LIABILITIES RELATED TO DISCONTINUED OPERATIONS
EUR million 2020 2019
Deferred tax liabilities 0.2
Non-current provisions 3.0
0.0 30.2
Current provisions
0.1 7.1
Income tax liabilities 0.0
Current trade and other payables 0.3 122.3
Contract liabilities 0.2
Total 0.7 223.3
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
27. Acquisitions and divestments
Acquisitions in 2020
-
The net sales of the acquired business included in the Group's consolidated income statement
approx. EUR 3 million.
annual synergies of approx. EUR 13 million. These synergies are expected to be realised in full in
and support functions.
on 20 April 2020.
-
is attributable mainly to the synergies related to the leverage of Sanoma's digital capabilities,
-
are mainly included in other operating expenses.
On 31 December 2020 Sanoma acquired 100% of the shares of Santillana Spain, a leading Spanish
Sanoma Learning SBU as of 31 December 2020.
Sanoma Learning as from closing.
Total assets and liabilities of Santillana are included in the Group’s consolidated balance sheet on
SBU as of 1 January 2021.
million. The synergies are expected to be realised in full during 2022 and mainly relate to procure-
-
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Sanoma Learning business.
Sanoma Learning’s 2020 result. In the income statement transaction costs are included in other
operating expenses.
relationships and learning technology platform.
leading providers of digital educational platforms in Spain. The Group elected to recognise the
-
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
IMPACT OF BUSINESS ACQUISITIONS ON GROUP'S ASSETS AND LIABILITIES
2020 2019
EUR million Santillana Alma Other Total Iddink Other
Total
Property, plant and equipment 1.0 2.0 3.1 0.3
Right-of-use assets 16.2
Intangible assets 34.0 264.3 40.1 232.1
Other non-current assets 4.3 0.4 4.6 1.4 7.2
Inventories 0.0 20.6 0.1 4.0
Other current assets 21.4 0.0 11.6
Assets, total 271.8 120.8 8.9 401.5 60.4 377.3
Non-current liabilities -67.3 -2.3 -121.2 -143.3 -11.1
Current liabilities -0.1 -17.6 -101.3
Liabilities, total -93.2 -80.5 -2.4 -176.1 -227.0
Fair value of acquired net assets 40.3 6.4 31.7 121.6
Acquisition cost 0.7 212.1
Non-controlling interests, based on the proportionate interest in the
recognised amounts of the assets and liabilities
-0.2 -0.2 0.0 0.2 0.2
Fair value of acquired net assets -40.3 -6.4 -31.7 -121.6
Goodwill from the acquisitions 230.1 38.8 -5.9 262.9 122.2 27.2
ACQUISITIONS OF NON-CONTROLLING INTERESTS
EUR million 2020 2019
Acquisition cost -
- 1.0
Impact on consolidated equity - -7.4
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
CASH PAID TO OBTAIN CONTROL, NET OF CASH ACQUIRED
2020 2019
EUR million Santillana Alma Other Total Iddink Other
Total
Acquisition cost 0.7 212.1
Cash and cash equivalents of acquired operations -24.7 0.0 -12.3
2.0 2.0 -11.0 -11.2 -22.2
Cash paid to obtain control, net of cash acquired 404.2 54.4 2.7 461.3 236.3
Cash paid on acquisitions of non-controlling interests
Acquisitions in 2019
Iddink
leading Dutch provider of educational platforms and distribution services. The acquisition
educational publisher for primary, secondary and vocational education. The acquisition
enables further development of integrated digital learning platforms for secondary and voca-
Sanoma Learning and continues to serve all educational publishers and content providers in
is expected to be deductible for tax purposes.
-
Other
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
entertainment house.
education in the Netherlands.
nine countries and about 200 employees. The acquisition expands Sanoma’s footprint in digital
mainly include learning technology platform.
Divestments in 2020
In total, the divestment resulted in a non-cash capital loss of EUR 107 million (incl. divestment-re-
-
million of debt repayments.
-
On 27 August 2020 Sanoma divested itslearning Inc.
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
IMPACT OF DIVESTMENTS ON GROUP’S ASSETS AND LIABILITIES
2020 2019
EUR million SMN Oikotie Other Total Total
Property, plant and equipment 1.6 0.2 0.0
Right-of-use assets 24.2 0.2 24.4 2.1
440.3 17.0
Other intangible assets 2.4 33.2 0.3
Equity-accounted investees
Inventories 10.2 0.0 10.2 0.3
Trade and other receivables 2.0 2.3
Cash and cash equivalents 0.6 27.0 3.0
Assets, total 626.0 29.3 2.9 658.2
Deferred tax liabilities -0.2
Financial liabilities -37.2 -0.1 -37.3
Trade and other payables -3.2
Liabilities, total -561.1 -5.1 -3.3 -569.6
Derecognised non-controlling interest -4.4 -4.4
Net assets 60.4 24.2 32.1
Sales price 62.4 44.3
Transaction fees paid -2.0 -0.2 -1.1
Adjustment to capital loss 0.1 -0.4
Recognised in Other comprehensive
income
-0.3 -0.3
Net result from sale of operations -1.6 164.8 -0.2 163.0 11.1
CASH FLOW FROM SALE OF OPERATIONS
2020 2019
EUR million SMN Oikotie Other Total Total
Sales price 62.4 44.3
Debt repayments
Cash and cash equivalents of divested
operations
-0.6 -27.0 -3.0
from divestment
0.0 0.0 0.1 0.1 12.1
423.8 183.1 -0.5 606.5
Divestments in 2019
-
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
28. Subsidiaries and equity-accounted investees
SUBSIDIARIES AT 31 DEC 2020
Parent
Company
holding,
%
Sub-group’s
Parent
Company
holding,
%
Group
holding,
%
Book value
in Parent
Company,
EUR million
Subsidiaries of Parent Company
Sanoma Trade Oy, Finland 100.0 100.0 10.0
1
100.0 100.0
Sanoma B.V., The Netherlands 100.0 100.0 0.7
Sanoma Pro Oy, Finland
1
100.0 100.0
100.0 100.0
Subsidiaries of Sanoma Learning B.V.
Bureau ICE B.V., The Netherlands 100.0
100.0
Uitgeverij Van In N.V., Belgium 100.0
100.0
Uitgeverij Essener B.V., The Netherlands 100.0
Subsidiary of Sanoma Trade Oy
100.0
Subsidiaries of Sanoma B.V.
100.0
100.0
100.0
Subsidiaries of Sanoma Media Finland Ltd
Sanomala Oy, Finland 100.0 100.0
Sanoma Kids Finland Oy, Finland 100.0 100.0
60.0 60.0
Savon Paino Oy, Finland 100.0 100.0
60.0 60.0
SUBSIDIARIES AT 31 DEC 2020
Parent
Company
holding,
%
Sub-group’s
Parent
Company
holding,
%
Group
holding,
%
Book value
in Parent
Company,
EUR million
Finland
60.0 60.0
100.0 100.0
100.0 100.0
Subsidiaries of Sanoma Pro Ltd
100.0 100.0
Sanoma Learning B.V., The Netherlands 100.0 100.0
100.0 100.0
Tutorhouse Oy, Finland
100.0 100.0
Santillana Educatión, S.L., Spain 100.0
Ítaca, S.L., Spain 100.0
Subsidiaries of Santillana Education
Grup Promotor D´Ensenyement i Difusió en Catalá,
S.L., Spain
100.0
Edicions Voramar, S.A., Spain 100.0
Ediciones Grazalema, S.L., Spain 100.0
Edicions Obradoiro, S.L., Spain 100.0
Zubia Editoriala, S.L., Spain 100.0
Santillana Infantil y Juvenil, S.L., Spain 100.0
Subsidiaries of itslearning AS
itslearning Ltd, United Kingdom 100.0
itslearning UK Ltd, United Kingdom 100.0
100.0
itslearning GmbH, Germany 100.0
itslearning France SA, France 100.0
itslearning Nederland BV, The Netherlands 100.0
100.0
100.0
1
Parent Company of sub group
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
SUBSIDIARIES AT 31 DEC 2020
Parent
Company
holding,
%
Sub-group’s
Parent
Company
holding,
%
Group
holding,
%
Book value
in Parent
Company,
EUR million
itslearning Oy, Finland 100.0
Subsidiary of Nowa Era Sp. z.o.o.
Vulcan Sp. z.o.o., Poland 100.0
Subsidiary of Iddink Holding B.V.
100.0
Subsidiaries of Iddink Group B.V.
De Rode Planet B.V., The Netherlands 100.0
100.0
100.0
100.0
The Implementation Group B.V., The Netherlands 100.0
SBDC BvbA, Belgium 100.0
Subsidiary of Iddink Spain Srl
67.3
453.4
1
Parent Company of sub group
-
EQUITY-ACCOUNTED INVESTEES
AT 31 DEC 2020
Parent
Company
holding,
%
Sub-group’s
Parent
Company
holding,
%
Group
holding,
%
Book value
in Parent
Company,
EUR million
Sanoma Corporation
0.2
Sanoma Media Russia & CEE B.V.
Netherlands
Sanoma Media Finland Ltd
Egmont Kustannus Oy Ab, Finland
Platco Oy, Finland 33.3 33.3
Beely Oy, Finland
Oy Suomen Tietotoimisto - Finska Notisbyrån
Ab
Retriever Suomi Oy, Finland
0.2
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
29. Related party transactions
Sanoma Group’s related parties include subsidiaries, associated companies, joint ventures,
The transactions of the other shareholders of joint ventures are not presented as related party
transactions because those shareholders are not considered to be related parties on the basis of
Pension funds are described in more detail in accounting policies and pension calculations in
TRANSACTIONS WITH RELATED PARTIES
EUR million
Transaction values
for the year
Balance as at 31
December
2020 2019 2020 2019
Sale of goods and services
Entities controlled by management personnel 0.1 0.1 0.0 0.0
Joint ventures 0.0 0.0
Associates 0.0 0.1
Total 0.1 0.2 0.0
Purchase of goods and services
Entities controlled by management personnel -1.3 -1.3 0.2 0.2
Joint ventures 0.0 0.6
Associates -0.1 0.0
Total -1.3 -1.4 0.2 1.3
100 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
30. Management compensation, benets and ownership
MANAGEMENT REMUNERATION AND OWNERSHIP, 2020
Number of performance shares and restricted shares
Remuneration
(EUR 1,000)
Number of shares
on 31 December
2020
Performance and
restricted share
plan costs
(EUR 1,000)
Performance
Share Plan
2
Performance
Share Plan
2
Performance Share
2
Restricted Share
Plan 2019-2021
2
Board of Directors
134
Antti Herlin, Vice Chairman
1
Nils Ittonen
Denise Koopmans
73
74 10,273,370
77
Total 813 30,868,398
President and CEO
Susan Duinhoven 211,200
Total 3,546 358,341 1,409 211,200 216,810 50,000
Executive Management Team
26,740
Pia Kalsta
31,220 27,000
Total 2,158 81,211 477 38,720 77,473 28,750 27,000
1
Includes the holdings of interest parties.
2
restricted shares received.
do not receive separate remuneration for their Board memberships in the Group companies. Performance and restricted share plan costs include costs during membership. The Group has no outstanding
101 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
MANAGEMENT REMUNERATION AND OWNERSHIP, 2019
Number of performance shares and restricted shares
Remuneration
(EUR 1,000)
Number of
shares on 31
December 2019
Performance and
restricted share
plan costs
(EUR 1,000)
Performance
Share Plan
2
Performance
Share Plan
2
Performance
Share Plan
2
Restricted Share
Plan 2019-2021
2
Board of Directors
102 10,000
Antti Herlin, Vice Chairman
1
Anne Brunila 76
70
Nils Ittonen
Denise Koopmans
70 10,273,370
74
Total 692 30,654,308
President and CEO
Susan Duinhoven 211,200
Total 3,455 250,935 1,382 225,000 211,200 150,000
Executive Management Team
Pia Kalsta
21,600 27,000
Total 3,512 96,894 615 82,500 57,024 68,600 27,000
1
Includes the holdings of interest parties.
2
shares received.
102 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
-
according to the short-term incentive plan approved each year by the Board of Directors. The
performance criteria set at the beginning of the year 2020 in the 2020 short-term incentive plan
environment due to coronavirus pandemic, the Board decided to adjust the performance targets
The long-term incentives are part of the Group’s incentive and commitment programme and
Committee’s proposal.
sanoma.
com
Governance section at sanoma.com.
Other benets of the management
The President and CEO Susan Duinhoven’s period of notice is six months either from the President
and CEO’s or the Company’s part. If the executive contract is terminated by the Company, a
-
petition clause.
-
31. Events after the balance sheet date
103 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Parent Company Financial Statements
1. Parent Company’s accounting policies for Financial Statements 106
2. Other operating income 106
3. Personnel expenses 106
4. Other operating expenses 107
107
6. Income taxes 107
7. Intangible assets 108
109
110
10. Short-term receivables 111
11. Shareholders’ equity 111
12. Appropriations 112
13. Non-current liabilities 112
14. Current liabilities 112
112
Parent Company income statement, FAS 104
Parent Company balance sheet, FAS 104
105
106
Audited
104 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Parent Company income statement, FAS
EUR million Note 2020 2019
Other operating income 2 110.1
Personnel expenses 3 -21.7 -24.0
Depreciation. amortisation and impairment losses -277.1 -170.2
Other operating expenses 4
OPERATING PROFIT (LOSS) -287.5
Financial income and expenses 67.1
RESULT BEFORE APPROPRIATIONS AND TAXES -0.9
Appropriations 12 47.3
Income taxes 6 -7.0
RESULT FOR THE YEAR 39.6 -62.3
Parent Company balance sheet, FAS
ASSETS
EUR million Note
31 Dec
2020
31 Dec
2019
NON-CURRENT ASSETS
Intangible assets 7 6.1
Tangible assets 11.0
Investments
NON-CURRENT ASSETS. TOTAL 1,397.6
CURRENT ASSETS
Short-term receivables 10 103.3
Cash and cash equivalents 1.6
CURRENT ASSETS. TOTAL 187.1
ASSETS. TOTAL 1,584.8 1,676.7
EQUITY AND LIABILITIES
EUR million Note
31 Dec
2020
31 Dec
2019
SHAREHOLDERS' EQUITY 11
Share capital 71.3 71.3
Treasury shares -4.3 -4.6
Fund for invested unrestricted equity
Retained earnings 421.1
-62.3
SHAREHOLDERS' EQUITY. TOTAL 594.4
APPROPRIATIONS 12 0.7 0.4
LIABILITIES
Non-current liabilities 13 300.4 200.1
Current liabilities 14
LIABILITIES. TOTAL 989.6 1,041.1
EQUITY AND LIABILITIES. TOTAL 1,584.8 1,676.7
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Parent Company cash ow statement, FAS
EUR million 2020 2019
OPERATIONS
Result for the period -62.3
Adjustments
Income taxes 7.0
Appropriations -47.3
Financial income and expenses -67.1
Depreciation, amortisation and impairment losses 277.1 170.2
Gains / losses on sale of non-current assets -0.2 -0.6
Other adjustments 2.1
Change in trade and other receivables -4.0
Change in trade and other payables, and provisions -7.0
Dividends received and refunds of capital
Interest paid -4.3 -11.4
2.1
Taxes paid -6.2
CASH FLOW FROM OPERATIONS 251.4 73.6
EUR million 2020 2019
INVESTMENTS
Acquisition of tangible and intangible assets -3.7
Sales of tangible and intangible assets 1.6 1.1
Group companies sold 0.0 0.0
Loans granted -324.0
Repayments of loan receivables 327.1 20.2
Interest received 10.4 7.0
CASH FLOW FROM INVESTMENTS -83.7
CASH FLOW BEFORE FINANCING 167.7 -226.0
FINANCING
Purchase of treasury shares -2.4
-331.3 201.3
Repayments of other loans -306.7
Dividends paid -73.4
Group contributions
CASH FLOW FROM FINANCING -73.5
statement
94.3 -2.6
Net increase(+)/decrease(-) in cash and cash equivalents 94.3 -2.6
Cash and cash equivalents at 1 Jan -1.6 4.2
Cash and cash equivalents at 31 Dec 95.9 1.6
106 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Notes to the Parent Company nancial statements
1. Parent Company’s accounting policies for
Financial Statements
-
accounting principles of IFRS standards are mainly consistent thus the main accounting principles
Pensions
Statutory pension cover of Sanoma Corporation’s employees is managed by pension insurance
insurance companies. Pension settlements and pension costs are recognised during the period
-
nised as an obligatory provision under the balance sheet of Sanoma Corporation.
Interest in Group companies
Interest in Group companies is measured at cost less any impairment losses. Interest in Group
companies is tested for impairment annually.
dividend discount model. Impairment need is assessed by comparing the fair value of the subsid-
Real estate investments and housing property investments
presented as investments of non-current assets.
2. Other operating income
EUR million 2020 2019
Technology management fee 12.2
Other management and service fees
Rental income 0.1 0.1
Capital gains 0.2 0.6
Gains on mergers
Other 26.7 14.2
Total 93.9 110.1
3. Personnel expenses
EUR million 2020 2019
Wages, salaries and fees -21.1
Pension costs -2.4 -2.4
Other social expenses -0.6
Total -21.7 -24.0
177
The remuneration to the President and CEO and Board of Directors is presented separately, divided
by persons, in Note 30 to the Financial Statements.
107 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
4. Other operating expenses
EUR million 2020 2019
Professional fees -21.6
Rents
Losses on sales 0.0 -0.1
Other -3.7 -4.6
Total -82.6
PRINCIPAL AUDIT FEES
EUR million 2020 2019
Statutory audit -0.4 -0.3
Tax services 0.0 0.0
Other non-audit services -0.4
Total -0.4 -0.7
5. Financial income and expenses
EUR million 2020 2019
Dividend income
From Group companies
Total 285.0
Interest income from investments under non-current assets
From Group companies
Total 8.1
From Group companies 0.2
From other companies 0.1 0.1
Exchange rate gains 2.1 1.4
Total 2.4
To Group companies -0.1 -0.2
To other companies -7.0 -13.2
Exchange rate losses
Total -8.9
Total 286.6 67.1
In 2020 dividend income from Group companies relates mainly to Dutch subsidiary in consequence
6. Income taxes
EUR million 2020 2019
Income tax on operational income -7.2
Income taxes from previous periods 0.4 0.6
Total -6.9 -7.0
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
7. Intangible assets
INTANGIBLE ASSETS 2020
EUR million
Immaterial
rights
Other intangible
assets
Advance
payments Total
Acquisition cost at 1 Jan 2.2 16.7
Increases 2.0 1.3 3.3
Decreases -0.2 -0.2
Acquisition cost at 31 Dec 2.0
Accumulated amortisation and impairment losses at 1 Jan -2.7 -12.0
Depreciation for the period -0.1 -1.7
Accumulated amortisation and impairment losses at 31 Dec -11.0
Book value at 31 Dec 2020 0.0 4.0 2.0 6.1
INTANGIBLE ASSETS 2019
EUR million
Immaterial
rights
Other intangible
assets
Advance
payments Total
Acquisition cost at 1 Jan 2.1
Increases 1.3 2.2
Decreases -2.6 -2.6
2.4 -2.1 0.3
Acquisition cost at 31 Dec 2.2 16.7
Accumulated amortisation and impairment losses at 1 Jan -10.4
Decreases 0.7 0.7
Depreciation for the period -0.1 -2.1 -2.3
Accumulated amortisation and impairment losses at 31 Dec -2.7 -12.0
Book value at 31 Dec 2019 0.1 2.5 2.2 4.8
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
8. Tangible assets
TANGIBLE ASSETS 2020
EUR million Land and water
Buildings and
structures
Machinery and
equipment Other
Advance
payments Total
Acquisition cost at 1 Jan 0.3 3.1 0.3 14.6
Increases 0.1 0.4
Decreases -1.2 -1.2
Acquisition cost at 31 Dec 0.3 3.2 0.3 0.4
Accumulated depreciation and impairment losses at 1 Jan -0.1 -2.7
Depreciation for the period 0.0 -0.1 -0.1
Accumulated depreciation and impairment losses at 31 Dec -0.1
Book value at 31 Dec 2020 9.7 0.2 0.4 0.3 0.4 11.0
TANGIBLE ASSETS 2019
EUR million Land and water
Buildings and
structures
Machinery and
equipment Other
Advance
payments Total
Acquisition cost at 1 Jan 11.4 0.3 3.1 0.3
Increases 0.4 0.4
Decreases -0.4 -0.2 -0.3 -1.4
Acquisition cost at 31 Dec 0.3 3.1 0.3 0.0 14.6
Accumulated depreciation and impairment losses at 1 Jan -0.1
Decreases 0.3 0.3
Depreciation for the period 0.0 -0.2 -0.2
Accumulated depreciation and impairment losses at 31 Dec -0.1 -2.7
Book value at 31 Dec 2019 10.9 0.2 0.4 0.3 0.0 11.9
110 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
9. Investments
INVESTMENTS 2020
EUR million
Interest in
Group companies
Receivables from
Group companies
Interest in associated
companies
Other shares and
holdings Total
Acquisition cost at 1 Jan 0.2
Increases 100.7 100.7
Decreases -0.1 -0.1
Acquisition cost at 31 Dec 0.2
Accumulated impairment losses at 1 Jan
Impairment losses for the period
Accumulated impairment losses at 31 Dec -730.2 -731.0
Book value at 31 Dec 2020 453.4 922.4 0.2 4.5 1,380.5
INVESTMENTS 2019
EUR million
Interest in
Group companies
Receivables from
Group companies
Interest in associated
companies
Other shares and
holdings Total
Acquisition cost at 1 Jan 0.2 1,721.4
Increases
Decreases
1
-12.6 -0.2
Acquisition cost at 31 Dec 0.2
Accumulated impairment losses at 1 Jan
Impairment losses for the period
Accumulated impairment losses at 31 Dec
Book value at 31 Dec 2019 728.5 821.7 0.2 4.6 1,555.1
1
111 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
10. Short-term receivables
EUR million 2020 2019
Trade receivables
Loan receivables
Accrued income
1
61.2 66.7
Total 91.3 103.3
Receivables from Group companies
Trade receivables
Loan receivables
Accrued income
Total 80.6
1
11. Shareholders’ equity
EUR million 2020 2019
Restricted equity
Share capital at 1 Jan 71.3 71.3
Share capital at 31 Dec 71.3 71.3
Restricted equity 31 Dec 71.3 71.3
Unrestricted equity
Treasury shares at 1 Jan -4.6
Purchase of treasury shares -2.4
Shares delivered
Treasury shares at 31 Dec -4.3 -4.6
Fund for invested unrestricted equity at 1 Jan
Fund for invested unrestricted equity at 31 Dec
EUR million 2020 2019
Retained earnings at 1 Jan
Dividends paid -73.4
Share-based compensation 1.6 2.0
Shares delivered -1.4
Retained earnings at 31 Dec 421.1
-62.3
Unrestricted equity 31 Dec 523.1
Total 594.4
DISTRIBUTABLE EARNINGS
EUR million 2020 2019
Treasury shares -4.3 -4.6
Fund for invested unrestricted equity
Retained earnings 421.1
-62.3
Total 523.1
112 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
12. Appropriations
EUR million 2020 2019
0.7 0.4
Total 0.7 0.4
13. Non-current liabilities
EUR million 2020 2019
300.0 200.0
Accrued expenses 0.4 0.1
Total 300.4 200.1
14. Current liabilities
EUR million 2020 2019
Commercial papers 341.2
Trade payables 13.2
Accrued expenses
1
14.3
Other liabilities
Total 689.2
Liabilities to Group companies
Trade payables 3.4
Accrued expenses 0.7
Other liabilities
2
Total 400.1 417.4
1
expenses..
2 Other liabilities to group companies include balances in IHC account.
15. Contingent liabilities
EUR million 2020 2019
Contingencies for own commitments
Total 15.0
Contingencies incurred on behalf of Group companies
Guarantees
Total 194.6
Other liabilities 7.3
Total 7.3
Total 216.9 216.7
NOMINAL VALUES OF DERIVATIVES
EUR million 2020 2019
Currency derivatives
2.7
-4.4
Total 2.7
FAIRVALUES OF DERIVATIVES
EUR million 2020 2019
Currency derivatives
-0.1 -0.1
Total -0.1 -0.1
113 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Board’s proposal for
The retained earnings of the parent company Sanoma Corporation according to the balance
December 2020.
donation reserve and used at the Board's discretion EUR 700,000.00
year. The Company’s liquidity is good and according to the Board of Directors the proposed
instalment is 22 April 2021.
The second instalment of EUR 0.26 per share shall be paid in November 2021. The second instalment shall be
Signatures to the Financial Statements
and the Board of Directors’ Report
Pekka Ala-Pietilä Antti Herlin Julian Drinkall
Chairman Vice Chairman
Rolf Grisebach Mika Ihamuotila Nils Ittonen
Denise Koopmans Sebastian Langenskiöld Rafaela Seppälä
Kai Öistämö
Susan Duinhoven
President and CEO
Auditor's note
A report on the audit carried out has been submitted today.
Authorized Public Accountants
APA
114 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
In our opinion
-
-
What we have audited
the consolidated balance sheet, income statement, statement of comprehensive income,
Basis for Opinion
under good auditing practice are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report.
basis for our opinion.
Independence
6 to the Financial Statements.
Our Audit Approach
Overview
companies and covers the vast majority of group’s revenues,
assets and liabilities.
Valuation of prepublication rights included in intangible assets
Revenue recognition
Accounting for changes in group structure
Valuation of interests in group companies and receivables from
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Materiality
-
-
Overall group materiality
How we determined it
group materiality.
Rationale for the materiality benchmark
applied
before tax as a combination provide a suitable
representation of the volume of Sanoma’s
How we tailored our group audit scope
procedures related to the balance sheet of the acquired Santillana Group as it has been consoli-
Key Audit Matters
-
Key audit matter in the audit of the group How our audit addressed the key audit matter
Valuation of goodwill
Refer to Accounting policies for consolidated
nancial statements and Note 12
is not amortized but tested at least once a year for
possible impairment. For the purpose of impairment
million
of the CGUs. This assessment involves considerable
discount rate.
due to the management judgement involved in the
valuation.
Our audit procedures included, for example, the
We obtained an understanding of the method-
We tested the mathematical accuracy of the
calculations
We assessed the reasonableness of the
forecasts
We involved our valuation experts to test the
reasonableness of the discount rates, the long-
We tested management’s sensitivity analysis to
-
tions that either individually or collectively could
We assessed the adequacy of the disclosures.
116 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Key audit matter in the audit of the group How our audit addressed the key audit matter
Valuation prepublication rights included in
intangible assets
Refer to Accounting policies for consolidated
nancial statements and Note 12
As of December 31, 2020, prepublication rights
The prepublication rights of learning materials and
solutions are mostly internally generated intangible
assets that are amortized using the straight-line
the carrying values of these intangible assets to
determine that they do not exceed the estimated
Valuation of these intangible assets is considered
involved in determining the amortization period and
in assessing the recoverability of these assets.
Our audit procedures included, for example, the
We obtained an understanding of the account-
ing and valuation principles of the prepublica-
tion rights
We evaluated the management’s estimate of the
amortization period used for the prepublication
rights
We evaluated management’s estimate of the
We tested, on a sample basis, additions to the
prepublication rights..
Revenue recognition
Refer to Note 3 in the consolidated nancial
statements
The group’s total net sales from continued
operations amount to EUR 1 062 million.
Revenue from the Learning segment is primarily
Finland segment principally generates revenue
Radio operations, online and subscription video
recognition principles vary depending on the nature
of the revenue stream.
statements and due to management judgement
involved in selecting the appropriate revenue
Our audit procedures included, for example, the
We obtained an understanding of the company’s
revenue recognition policies and compared
these to the respective standards on revenue
recognition
We tested the internal controls that the company
uses to assess the completeness, accuracy and
timing of revenue recognized
We tested revenue contracts and transactions
on a sample basis
We tested, on a sample basis, revenue related
balances in the balance sheet, such as provision
for returns and advances received.
Key audit matter in the audit of the group How our audit addressed the key audit matter
Accounting for changes in group structure
Refer to Accounting policies for consolidated
nancial statements and Note 26 and 27
The group has announced several acquisitions
significant being the acquisition of the Spanish
learning material provider Santillana Spain,
Accounting for changes in group structure
transactions.
Our audit procedures included, for example, the
We obtained an understanding of the company’s
accounting policies for acquisitions and divest-
ments
We assessed management’s application of the
accounting policies and the assumptions related
divestments and acquisitions
-
ments and the impact of the transaction on the
We tested, on a sample basis, the appropriate
disclosure of the discontinued operations in the
Valuation of interests in group companies and
receivables from group companies in the Parent
Refer to the Parent Company’s accounting
policies and Note 9
The investments in group companies’ shares
receivables from group companies.
Interest in group companies is tested for impairment
annually using the income approach. In applying
this approach, the fair value of an investment is
or the discounted dividend model.
Valuation of interests in group companies and
receivables from group companies is considered a
financial statements and due to management
judgement involved in the income approach used to
test the valuation of these investments.
Our audit procedures included, for example, the
We assessed the reasonableness of manage-
ment assumptions relating to the estimated
We involved our valuation experts to assess
the inputs and methodology in determining the
discount rates, and in evaluating the long-term
in respect of the impairment testing.
117 Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Responsibilities of the Board of Directors and the President and
CEO for the Financial Statements
The Board of Directors and the President and CEO are responsible for the preparation of consoli-
President and CEO are also responsible for such internal control as they determine is necessary to
due to fraud or error.
responsible for assessing the parent company’s and the group’s ability to continue as a going
concern, disclosing, as applicable, matters relating to going concern and using the going concern
accounting unless there is an intention to liquidate the parent company or the group or to cease
operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
considered material if, individually or in the aggregate, they could reasonably be expected to
of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
Evaluate the appropriateness of accounting policies used and the reasonableness of account-
ing estimates and related disclosures made by management.
Conclude on the appropriateness of the Board of Directors’ and the President and CEO’s use
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
or the group to cease to continue as a going concern.
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
-
tionships and other matters that may reasonably be thought to bear on our independence, and
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
Other Reporting Requirements
Appointment
Other Information
The Board of Directors and the President and CEO are responsible for the other information. The
other information comprises the report of the Board of Directors and the information included in
materially misstated. With respect to the report of the Board of Directors, our responsibility also
In our opinion
and regulations.
Other statements
Act. We support that the Board of Directors of the parent company and the President and CEO be
PricewaterhouseCoopers Oy
Authorised Public Accountants
Sanoma Annual Review 2020
Board of Directors’ Report Financial Statements
For investors
Investor Relations
Investor Relations function that serves analysts and investors, and coordinates investor meetings
and activities.
Financial reporting and 2021 AGM
Interim Report 1 January–30 September 2021 Wednesday, 27 October
legislation.
Changes in contact information
Euroclear Finland Ltd maintains a list of the Company’s shares and shareholders. Shareholders
IR contact
Kaisa Uurasmaa
Head of Investor Relations and Sustainability
Meeting requests and inquiries
sanoma.com
