Sanoma Oyj - Company Announcement

Sanoma accelerates its transformation in Finland

Sanoma Corporation, Stock Exchange Release, 25 August 2015 at 9:45 CET+1

Sanoma today announces the acceleration of its transformation in Sanoma Media
Finland. 

As stated in its Q2 financial announcement on 23 July 2015, two out of three of
Sanoma's strategic business units - Sanoma Media BeNe (Belgium and the
Netherlands) and Sanoma Learning - are performing on track. However, in order
to position the company for long term and sustained success, the transformation
of its media operations in Finland will be stepped up. 

Harri-Pekka Kaukonen, President and CEO, Sanoma Group, said: “Building on our
leading position in the Finnish media market, our strong brands and success in
digital, we need to take additional measures to improve profitability and
respond to the challenges posted by the changing media environment and a weak
economy.” 

As part of this, an adjustment of the company's cost base is planned, with a
EUR 50 million cost savings target. A significant portion of these measures is
expected to be implemented by the end of 2015, with the vast majority of
savings projected to be realised by the end of 2016. Savings are anticipated
across the areas of distribution and printing, as well as efficiency
improvements in content creation, marketing and sales. In addition, Sanoma's
Group-wide support functions are planned to be streamlined in order to simplify
structures and increase agility. 

The cost savings are likely to result in redundancies across multiple parts of
Sanoma Media Finland as well as Sanoma's Group-wide support functions, with a
maximum of 280 employees potentially affected. Sanoma will initiate
co-operation negotiations in accordance with local laws and regulations, and
make the final decisions based on the outcome of these negotiations. 

Pia Kalsta, CEO, Sanoma Media Finland added: “These are tough times for the
media industry in Finland and unfortunately they have an impact on our people.
I am confident that the plans announced today will improve our financial
performance and competitiveness in the market.” 

Additional information

Sanoma's Communications in Finland,
Hanna Johde
tel. +358 40 673 8977
hanna.johde@sanoma.com

Sanoma's Communications in the Netherlands,
Robin Janszen
tel. +31 6 2293 2643
robin.janszen@sanoma.com

Sanoma's Investor Relations
Olli Turunen
tel. +358 40 552 8907
olli.turunen@sanoma.com

Sanoma.com

Get the world. Sanoma helps people access and understand the world.

We believe in a world full of opportunities, feelings, reactions and
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Sanoma is a front running consumer media and learning company in Europe. In
Finland and the Netherlands we are the market leading media company with a
broad presence across multiple platforms. Our main markets in learning are
Belgium, Finland, the Netherlands, Poland and Sweden. In 2014, Sanoma's net
sales totalled EUR 1.9 billion. Sanoma is listed on the Nasdaq Helsinki stock
exchange.