P4 · P4 makes significant contributions to a variety of public authorities and social institutions. In 2001, P4 spent more than NOK 135 million on various social causes. Culture

2001P4 Annual report

Annual report 2001 P4 Radio Hele Norge

value added statement

to public authorities

contributesP4

substantial amounts

and

institutionssocial

44 804 000

11 438 000

21 334 000

9 088 000

22 640 000

13 020 000

12 920 000

VAT

135 244 000

State tax

PAYE

Employer´s NIcontributions

Norkring

Tono

Gramo

3

On 15 January 1993, P4 Radio Hele Norge was

granted a licence by the Ministry of Cultural

Affairs to set up and operate a national radio

network to be financed by advertising

revenues. P4 Radio Hele Norge’s head office

is in Lillehammer and it also has regional

offices in Oslo, Bergen and Tromsø.

P4 reaches 94 % of the population in Norway,

and has a daily audience of 25 %, which

amounts to 1 million listeners a day and

makes P4 Norway’s second largest radio sta-

tion. P4 has a market share of 29 % of the

total listener figures. P4 is also the station

that most people listen to when driving. P4 is

broadcast on the Internet and in addition to

the main station, P4 has 4 niche stations,

which can only be heard via the Internet.

P4 is involved in the expansion of a broad-

casting network for digital radio and has

assumed a national responsibility by entering

into long-term agreements relating to this

expansion. P4 wishes to draw attention to the

fact that, both in Norway and abroad, going

digital is the strategically correct approach

for commercial radio stations.

In Finland, P4 and Modern Times Group (MTG)

control 26 % of Radio Nova, Finland’s only

national commercial radio station.

In 2001, P4 had a turnover of NOK 255

million, with pre-tax profits of NOK 15 million.

facts about P4

contentsvalue added statement 3

summary 4

programming 5

listener figures 10

distribution – broadcasting 12

radio advertising 14

annual report 16

profit and loss account 18

cash flow statement 19

balance sheet 20

accounting policies 22

notes to the accounts 24

auditor’s report 34

P4 makes significant contributions to a varietyof public authorities and social institutions. In2001, P4 spent more than NOK 135 million onvarious social causes.

CultureMusic is an important part of P4’s editorial con-tent. Through agreements with the rights admi-nistrations societies Tono and Gramo, P4 contri-buted NOK 26 million in 2001 to performingartists, composers, songwriters and other rightsholders in the music industry. P4 also contribu-tes with support for cultural, humanitarian andsporting causes. P4 is one of the principal colla-boration partners in SOS Children’s Villages.

Nationwide broad-casting network andnew technologyEvery year, P4 spends a great deal on achievinghigh-quality, nationwide coverage via FM.However, P4 also feels a national obligation totake the medium of radio one step further intothe digital age. The cost of building a digital terrestrial network with the related distributionelements comes in addition to P4’s costs foranalogue distribution. In 2001, P4 spent NOK 23million on the distribution and expansion of ana-logue and digital radio in Norway.

Taxes and dutiesIn 2001, P4 paid approximately NOK 65 millionin taxes and duties. In addition to this, the com-pany’s employees paid over NOK 21 million inincome tax.

Silj

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tt

lighter lifestyle profile, was replaced in2001 by «Tors Dag». «Tors Dag»gives the listeners the oppor-tunity to have their ques-tions answered by profes-sionals and meet persona-lities in the news. The pro-gramme has also focused onethical and moral issues in theregular column «P4 Panelet». Norwegian music has beenstrongly focused on in «TorsDag», along with reports, inter-views and musical pieces by Norwegianmusicians.

The discussion programme «TvertImot», was continued in 2001, and«Kjønnskampen» was introduced as aregular weekly feature, where gender-related subjects are discussed.

«Rett & Slett» was one of P4’s new pro-grammes in 2001. Here Silje Stang andKårstein Eidem Løvaas focus on cultu-re, entertainment and topical issues. In2001, the programme broadcast a num-ber of interviews with writers, alongwith music and theatre reviews andsimilar features.

«Evens Etermiddag» makes well-aimeddigs at prominent personalities frompolitics, culture and the celebrity world.«Midt I Trafikken» is then broadcastwith traffic and public transport up-dates, and other traffic-related material.This programme also includes variouslistener activities, interviews on currentissues, and reports.

The current affairs programme «SyttenTretti», airs every weekday, and is roundedoff by the news in the Sami language.Following this slot, P4 broadcasts a

4 Annual report 2001 P4 Radio Hele Norge 5

P4 is a commercial public broadcaster.P4’s programming policy is first andforemost to fulfil the obligations set bythe licence conditions and public broadcasting conditions. In order toachieve this, P4 offers varied program-ming that combines news, music, cul-ture, public interest features, entertain-ment and sports.

Varied contentA major part of P4’s distinctive charac-ter is the station’s composition of trans-missions with varied programme con-tent. The combination of features andmusic has been a major factor in thestation’s success with the public. P4 alsoprovides programmes specially aimed atchildren and young people.

P4 has continuously updated and deve-loped its programming, and in 2001provided an extremely varied product.The station has strengthened its focuson culture and Norwegian music, pro-grammes for children and young people, ethnic minorities and publicinterest features.

Programming menuThe day starts with «P4’s Radiofrokost»,which has more than 500 000 listenersa day, and combines news, reports, adaily guest, debates, music, sports, culture and entertainment. In 2001, the current affairs part of this programmewas given an extra focus whereby amajor part of P4’s election campaigncoverage was broadcast on the breakfastshow. All the political party leaderswere interviewed and the parties wereanalysed by P4’s election commentatorSteinar Hansson.

The «Fem Høns» programme, with its

programming 2001

in recent years

focussedP4 has

strongly onNorwegianmusic

P4’s Radiofrokost has 514 000 listeners every day ...

summary

Tor

Anders

enw

asthe host of Tor

s

Dag

fullyP4 concentrates

on itscore activity:

commercial radio

2001 was P4 Radio Hele Norge’s eighth year of normal operations. Thegroup had a turnover of NOK 255 million, which was a drop of 12 % fromthe previous year. The year was marked by a reduction in advertisements inthe second half of the year and a restructuring of the operations in thefourth quarter.

In 2001, P4 was a strong and stable radio station with a daily listeneraudience of 25 % and a market share of 29 % of the total radio audience.In one week, half of Norway’s population listen to P4. P4 is established asNorway’s second largest radio station, and is the largest of those less than50 years old. In addition to this, more than half of all those listening to theradio while driving listen to P4.

P4’s strong position with the population was further highlighted by MMI’sprofile survey in 2001, which rated P4 as number three of the media com-panies, ahead of the newspapers VG and Aftenposten.

As with many other media companies, P4 has reorganised its digital strate-gy and focus on the Internet and multimedia services. The company is nowconcentrating fully on the core activity of nationwide commercial radiocoverage. Nevertheless P4 has also built up considerable expertise in multi-media production. This expertise can be used commercially if the market forthese services recovers.

The restructuring will lead to annual savings of around NOK 20 million from2002. The restructuring has not affected the radio product and the generalbroadcasting obligations. The terms of the licence are being upheld as laiddown in the licence.

P4’s programming has been developed and refined throughout the year. In2001, the news and current affairs profile was raised, the cultural side wasstrengthened and the proportion of Norwegian music increased by 20 %.The total effect of the changes has made P4 an even better radio station.


Children and youngpeopleIn 2001, P4 continued andstrengthened its focus on chil-dren and young people. Theprogrammes «Sånn Sirkus» and«Badeanda», are broadcast on week-days and weekends, and the youth pro-gramme «Guru» is broadcast everyTuesday and Thursday. P4 is continu-ing to expand its range of programmesfor children and young people in 2002.

RiksteateretP4 also worked with the travelling theatre known as Riksteateret in 2001on one of the theatre’s family shows;Snow White and the Seven Dwarfs.This collaboration made good radiolistening and increased public supportfor Riksteateret.

SOS Children’s VillagesP4 collects money for SOS Children’sVillages. In 2001, the network carriedout a number of radio activities togenerate income for a children’s villagein Ipiales in Colombia. This work isbeing continued in 2002 with a large-

P4 has renewed its agreement with theNorwegian Football League Associationgranting P4 rights to broadcast gamesfrom the Norwegian Premier Leagueup to the football season in 2004. Thisagreement gives P4 an option for a fur-ther 2 years.

«P4 Sport» has focused strongly on thecoverage of the Premier League. P4 hasprovided live coverage of all games inthe Premier League and cup matches inthe Norwegian championships from thequarterfinals. P4’s live broadcast beganan hour before kick off and ended anhour after the final whistle was blownin all the Premier League matches.

Popular sporting eventsIn 2001, P4 also supported Norwegiansports clubs with tracksuits, travel, etc.through the activity «Det ordner seg...».Each week, an application is selectedfrom a sports club that has applied forsupport. In 2001, P4 received morethan 600 of these applications.

SamiP4 has an ongoing collaboration withKautokeino Nærradio for news inSami. These news bulletins are broad-cast in association with P4’s currentaffairs programme «Sytten Tretti». TheSami news is also published on P4’sweb site P4.no .

Ethnic minoritiesIn 2001, P4 launched the programme«Multi-Kulti». This programme hasbeen a «voyage of discovery» into newand old ethnic minorities and culturesin Norway, and has covered issues oneverything from people of Finnish des-cent to events among African immi-grant groups.

Norwegian musicP4 has particularly focused onNorwegian music in recent years. In2000, P4 increased the proportion ofNorwegian music by 25 %, and gene-rally stepped up the focus on Norwegianmusic in all programmes in 2001.Features about and with Norwegianartists have seen a major increase, andthe station’s proportion of Norwegianmusic grew a further 20 % in 2001.

In addition to this, P4 has also investedtime and effort in making musical chro-nicles with known Norwegian artists.These are programmes that take a chro-nological look at the artist’s career bothinside and outside the music industry.In 2001, the column «P4 Unplugged»,was launched, where Norwegian artistsare invited to perform live in the stu-dio. P4 also has an Internet stationwhich plays only Norwegian music 24hours a day.

P4 Sport«P4 Sport» seeks to provide listenerswith live coverage of all sports high-lights in which Norway is participating.In 2001, P4 had reporters at the AlpineWorld Championship in St. Anton, theSki World Championship in Lahti, theHandball World Championship inItaly, the world cup qualificationrounds and Champions League.

P4 has had a collaboration agreementwith NRK radio where rights to cham-pionships in recent years have beenexchanged. Both parties have thereforehad broadcasting rights for all themajor sports championships. This agre-ement has now been extended for a fur-ther 2 years.

variety of programmes throughout theweek, with emphasis on programmesfor children and young people, ring-inprogrammes, music programmes andvarious topical issues.

The weekend has a different patternfrom the weekdays, with more emphasison topical programmes, music docu-

mentaries, portraits, cultural issu-es and sporting events.

P4 NewsThe bulk of the news division is locatedin Lillehammer, where all the news broadcasts originate. In addition, thenews division has journalists stationedin Oslo, Tromsø, Trondheim, Bergen,Stavanger and Kristiansand.

In 2001, P4 began extended news broadcasts at 7.30 am and 12 noon. As before, P4 also had extended news bulletins with sport at 7 am and 8 am.This focus has strengthened the depthof P4’s news coverage, with additionalfocus on debates, analysis and foreignaffairs.

The current affairs programme «SyttenTretti», has gained a great deal ofrespect in the corridors of power. Theprogramme has three times as manylisteners as its NRK rival «Dagsnytt 18».

P4 has correspondents in Cologne,Prague, Paris, Jerusalem, London, NewYork and Hong Kong. Internationalcoverage is important for P4, andaccounted for around 30 % of the newson P4 in 2001.

6 Annual report 2001 P4 Radio Hele Norge 7

corridors

Sytten Trettihas gained

great respect in the

powerof

SveinTore

TynningBergestuen of Sytten Tretti

Tvert Imot has 269 000 listeners every day ...

Continuation of programming 2001

Ander

sTa

nge

nof

Badeanda

young people

Increased

focusonculture and

Norwegianmusic,

plus programmesfor

children and


8 Annual report 2001 P4 Radio Hele Norge Rett & Slett has 301 000 listeners every day ...

<Percentage of program

me

distribution, verbal material 2001*

Entertainment 10,2 8,6 13,5

Drama 0,4 0,2

Religion/life philosophy 1,4 2,0 2,4

News 16,2 15,6 17,6

Sport 10,5 10,3 9,7

Social issues 9,9 9,3 13,5

Home/leisure 14,8 16,5 8,4

Nature/science 1,3 2,2 2,7

Culture 5,2 8,1 10,0

Programme information 2,9 1,3 2,9

Sami news 0,5 0,3

Children’s programmes 5,1 7,8 5,5

Source: Observer Norway

Classification 1999 2000 2001

Continuation of programming 2001

Annual report 2001 P4 Radio Hele Norge 9

*The programm

e statistics for 2001 show a

decrease for children’s programm

es and Sami

news. This does not give an overall true picture,

but is based on a statistical variance.

scale collection initiative known as«Barneaksjonen» (Children’s Campaign),based on the format of the NRK TV collection.

Election campaign on P4The campaign in the run-up to thegeneral election in 2001 and the electionitself received extremely good coverageon P4. Leaders from all the politicalparties were invited to three differentquestion sessions, with various anglesand styles. The «P4 news» and «SyttenTretti» followed developments fromhour to hour and provided summariesevery day. There were also regular dis-cussions on different aspects of the elec-tion campaign on «Tvert Imot». Variousfeatures and reports on the electionwere included in other programmes aswell, including the young people’s pro-gramme «Guru».

TrafficRadio has been the most importantsource of road traffic information formotorists for many years. Since P4began broadcasting almost eight yearsago, traffic bulletins have played animportant role in the service to the sta-tion’s listeners. P4 is the radio stationthat most motorists listen to. P4 receivesa large number of messages from liste-ners, the P4 helicopter, P4’s road team,the Public Roads Administration, thepolice and a number of other partners.These traffic messages are collected andedited centrally in P4’s Traffic Centrein Lillehammer. The Project «ICT inroad traffic», in which P4 participatedwith companies such as Telenor Mobil,Sintef and the Public Roads Admini-stration, came to an end in 2001.During the project, P4 developed anICT system for handling messages,routines for quality assurance, and fur-ther developed language and commu-nication methods.

Information and messages to road usersis an important contribution to theefficient and safe flow of traffic and isclassed as an editorial priority area in P4.

Sponsorship and editorial independenceP4 pursues journalistic principles, inde-pendent of sponsors and advertisers. In2001, Oslo District Court passed ajudgement in a legal case concerningVAT. The grounds of the judgementthat were presented were such that P4’seditorial independence was brought

into question. The circumstancesreferred to date back several

years, but in order to clari-fy the situation P4

carried out a thorough legal review ofthe company’s agreements. These agree-ments were reviewed in relation toregulations on broadcasting, sponsor-ship and ethical standards on advertising.

P4.noP4’s focus on the Internet in 2001 con-centrated on P4.no, where a number ofchanges were made in order to trans-form the web site into a fully-developedradio portal. The Internet newspaperprofile that previously characterised theweb site has been dispensed with. P4.nowill reflect the programme content andthe activities carried out on the air. Inaddition to the main station, P4.no alsotransmits another four Internet stations:P4 Norsk, P4 Hits, P4 Ballade and P4Oldies.

Religion and beliefsP4 broadcast the programme«Møteplassen» every Saturday andSunday in 2001. These programmeswere a collaboration with Norea Radio,and had an evangelic profile but werepresented in report formats. The pur-pose was reflection, but the form was topresent people with beliefs and doubts.The programme «Tro og Utro», withMadeleine Cederstrøm, has continuedsince 2000. This programme analysesand discusses in depth a broad range ofissues such as life philosophies, beliefs,ethics and morals. In 2001, the pro-gramme introduced listeners to themain religions in the world and variousassortments of philosophers.

CultureP4 has many and varied programmes

dealing with culture and culturallife. In 2001, the station beganthe daily culture programme «Rett

& Slett» with SiljeStang and Kårstein

Eidem Løvaas. The pro-gramme is broadcast two

hours every weekday and reflects on abroad range of cultural events. Culturenews, entertainment, interviews withwriters, theatre features and in-depthreviews of literature and films can alsobe heard here. The «Stormagasinet»show contained features, interviews andreports with a cultural flavour. Theportrait show «Klikk» is a weekly pro-gramme with radio portraits of diffe-rent cultural personalities and per-sons with a strong link to cultural

issues. P4 also has a broad rangeof programmes with portraits,

features, interviews andreports that put the

Norwegian music cultureon the map.

music

successP4’s public

= the combinationof features and

Bjørn Faarlund was the

host

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irekte

Leif

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For

berg

ofS

torm

agasinet

and

Klik

k

Annual report 2001 P4 Radio Hele Norge 1110 Annual report 2001 P4 Radio Hele Norge

0

10

20

30

40

50

60

70

80%

day week

P1

P2

Petre

P4

Local radio

1 %

= 1

9 82

0 pe

rson

s

Lokalradio

P4

Petre

P2

P1

P1

15 %

30 %

3 %

41 %

10 %

P2

Petre

P4

Local radio

0

100 000

200 000

300 000

400 000

500 000

06.00

08.00

10.00 12.00

14.00

16.00

18.00

20.00

00.00

22.00

P4

TV 2

TV 3

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listener figures Daily and weekly audience

20-50 years

Radio market performance

1993-2001. 9 years+, daily audience

Market shares (as per listening time)

20-50 yearsStable radio listening for P42001 was a good year for radio listener

figures for P4. Thestation maintained its

high listener audience of25 %, which equates to a

million listeners a day. Duringthe course of a week, half of the

Norwegian population tuned in toP4. P4’s previous years’ stable audience

figures continued in 2001, whilst NRKsuffered a slight drop in daily figures.This led to a slight reduction in thetotal listener audience in Norway.

Most popular with 20-50 year oldsP4 is Norway’s most listened to radiostation for people aged between 20 and50, with a market share of 41 %. NRKP1 is the second most listened to stationwith a market share of 30 % in thesame age group. In a typical week, 1.3million people, or 63 % of the popula-tion of Norway between the ages of 20and 50, tuned in to P4. P4 is also themost listened to station amongst theyoungest listeners; 20 % of those under20 listen to P4 every day. In compari-

son, 16 % in the same age group listento NRK Petre. P4’s most listened toprogramme is P4’s «Radiofrokost», withan average of 514 000 listeners a day in2001. This ranks P4’s «Radiofrokost» asone of the most listened to programmesin Norway.

Radio is the main daytime mediumRadio is the main daytime medium,with most listeners tuning in between 6am and 6 pm. This is a unique charac-teristic of radio, which means that P4can convey breaking news and issues ata time when few other media are partof the population’s day.

The high listener figures that P4 enjoysprovide the station with all types oflisteners. The characteristics of a P4listener are the same as the characteris-tics of an average Norwegian. The stationhas listeners of all ages, from all parts ofthe country, with all types of education,all levels of income and with a widevariety of preferences.

Source: Norsk Gallup Institutt AS

Evens EterMiddag has 265 000 listeners every day ...

5

10

15

20

25

30

35

40

P1

P2

Petre

P4

Local radio

%

1994

1995

1996

1997

1998

1999

2000

2001

0

Ger

dJo

hans

enis the host of P4s Helgefrokost

Even

andD

iffen

of Ukens Media Molbo

P4 has listeners of all ages,

fromall partsof the

country, with all types of

jobs and qualifications

Audience throughout the day

20-50 years

Annual report 2001 P4 Radio Hele Norge 12 Annual report 2001 P4 Radio Hele Norge 13

P4’s backbone and most important dis-tribution channel is FM radio. The P4network reaches about 94 % of thepopulation. A major part of the radiolistening originate from portable andmobile receivers. Coverage on roadsand in places where people travel butdon’t necessarily live, is therefore veryimportant. Despite the fact that the P4network uses up less frequency resour-ces than any other national network, ithas successfully created an efficient net-work that provides good coverage forthis type of user. P4 is the station mostlistened to by motorists.

In addition to this, distribution of P4has been established in other channels;satellite, cable TV network and theInternet. P4 is the largest station on theInternet in Norway.

Digitalisation of radio As with all other electronic media,radio is experiencing a period of deve-lopment. P4 have put great efforts intoadapting employees, routines and pro-duction systems to the digital world ofthe present and the future.

In order to be able to operate in amedia world that is becoming increa-singly complex and bringing with itmany technological challenges, P4 hasbuilt up extensive internal expertiseboth in development and operations.This has led to the establishment of adigital production environment thatenables P4 to work with all formats forall types of media, i.e. sound, text,image and video. P4 provides contentto its own and other distribution chan-nels over the radio, Internet, text TV,mobile phone etc. Based on the infra-structure that has been built up, P4 is

able to provide new services in new,digital media at short notice.

DABThe digitalisation of radio is a strategi-cally important area for P4. The digitalradio system known as DAB is designedto provide high quality to both mobileand stationary users. DAB provides theradio medium with multimedia possibi-lities and is a cost-effective broadcastingsystem. DAB is a superior system fortransmitting top quality sound andother digital information, and will pro-vide listeners with many more servicesand possibilities than the current FMsystem. Only DAB can offer transmis-sion of large volumes of data to a num-ber of mobile users simultaneously, atno cost to them.

The success of the introduction of newtechnology depends on the willingnessof all the parties involved to make acommitment. As a national DAB licenceholder, P4 has taken upon itself a natio-nal responsibility for entering into long-term agreements to expand the broad-casting network for digital radio, and tomake it known both in Norway andabroad that this is a strategically appro-priate policy for commercial radio stati-ons. The work in Norway is based onpolitical decisions and a mutual colla-boration with the other DAB players.Internationally, P4 participates in theWorldDab Forum and its related wor-king parties, amongst others.

The digitalisation of radio depends onthe success of larger countries with largermarkets. There are now clear and posi-tive indications from a number of coun-tries with regard to new, low price recei-vers, well-developed networks and new

distribution - broadcasting

area for P4

digitalisation of

radio is a strategically

important

the

Midt i Trafikken has 427 000 listeners every day ...

Mic

hael A

ndre

ass

en

of Midt i Trafikken

MadeleineCederström

of

Troog

utro

Anders Høglund of Tvert Imot

radio station

One millionlisteners

largestsecond

a daymakes P4 Norway´s

services. At the end of 2001, the natio-nal network in Norway achieved 50 %coverage of the population, as well asextensive mobile coverage. This, there-fore, forms a suitable market in which to introduce new types of receivers.

Kar

ianne

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<Advertising market 2001

(percentage of gross advertising expenditure)

2001 was an unusual year for the adver-tising market in Norway, where a longupward trend was followed by stagna-tion and a slump. The effects of thiswere felt by the radio market as well asP4. P4 earned NOK 244 million fromadvertising revenues in 2001.

Almost 1 000 advertising campaignswere launched in 2001, and the playerswith the highest growth were those inthe travel industry, special interestgroups and oil companies.

Radio strategyRadio has gained the confidence ofmany new players. Some of these playershave opted to use radio as the principalmedium and have successfully planneda number of media strategies according-ly. The Synnøve Finden dairy is one ofthe advertisers that P4 takes pride indoing business with. This company hasdone what many did not dare to; to puteverything into the radio medium.Together with media agencies, adverti-sing agencies and P4, Synnøve Findendevised a strategy using radio as theprincipal medium. With an appropriatemedia strategy and a well-defined con-cept, Synnøve Finden has presented itscompetitors with major challenges, despite having far fewer resources at itsdisposal.

Radio and the InternetEarning money on Internet-based acti-vities has proven to be a major chal-lenge. However, there’s no escaping thefact that the Internet is a very usefulchannel for communicating and inter-acting with customers. In 2001, P4 sawhow well the radio and Internet canwork together. The radio’s qualities withhigh coverage and frequency, as well asits daytime presence, form an extremelyuseful channel for conveying informationand generating traffic for a web site.Some of P4’s biggest clients have disco-vered this unique combination andmany more are expected to do so in thefuture.

tvtvukebladukeblad

P2

P1

Newspaper 44 %

TV 36 %

Popular Magazines 8 %

Trade Journals 5 %

Radio 4 %

Billboards 2 %

Cinema 1 %

Sytten Tretti has 146 000 listeners every day ...

Source: ACNielsenMedia Measurements 2001

Industry turnover 2001

Industry Percentage of turnover

1 Household provisions/Groceries 12.2 %

2 Gambling/Lotteries/Entertainment 9.1 %

3 Transport/Tourism 8.7 %

4 Telecom/Telephony services 7.4 %

5 Oil companies 7.1 %

6 Car/Car accessories 7.1 %

7 House & garden/Property 6.8 %

8 White goods/Brown goods 5.9 %

9 Banking/Insurance 5.8 %

10 Catalogues/Publishers/Books 5.7 %

11 Media 4.9 %

12 Special interest organisations 4.5 %

13 Shoes/Clothing 3.2 %

14 Gifts/Miscellaneous 2.9 %

15 Public information services 2.6 %

16 Data/Office equipment 1.4 %

17 Electronics/Watches/Optical/Photo 1.3 %

18 Music 1.2 %

19 Pharmaceutical 1.1 %

20 Sport 0.5 %

21 Health care products 0.3 %

22 Schooling/Education 0.2 %

Source: P4/CBSI-programme

1 Norsk Tipping

2 AS Norske Shell

3 Verdens Gang

4 KappAhl

5 Eilag Expert

6 Telenor

7 If...

8 Statoil

9 Telenor Mobil

10 FINN.no

Kårstein Eidem Løvaas of Rett & Slett

-> Narvesen doubled hot dog sales

-> Coop Mega captured the position as «the BBQ shop»

-> FINN.no – greater brand awareness and more traffic

<

radio advertising P4’s largest customers

16 Annual report 2001 P4 Radio Hele Norge Annual report 2001 P4 Radio Hele Norge 17

annual report P4 Radio Hele Norge ASA

Oslo, 21 March 2002

P4 Radio Hele Norge ASA

Pelle TörnbergChairman of the Board

Endre Røsjø Paul A. Rabl Tor Andersen

Hans-Holger Albrecht Line Fuglehaug

Hein Espen HattestadCEO

In 2001, the Group consolidated its position

as Norway’s second largest radio network. The

aspiration for economic growth in new distri-

bution channels was thwarted by the negative

development of the Internet market. Our

efforts have nevertheless been valuable and the

company is now equipped to provide effective

digitalisation of the content production. A tur-

bulent advertising market had a major effect

on P4 in 2001 and the company had a drop in

turnover compared to 2000.

Turnover for the P4 Group dropped from

NOK 290.4 million in 2000 to NOK 254.9

million in 2001, and the pre-tax profit was

NOK 14.9 million.

As of 31 December 2001, the Group had no

interest-bearing debt, while liquid assets

amounted to NOK 69.1 million (NOK 85.9

million). Capitalised development costs for the

same period amounted to NOK 2.6 million

(NOK 3.4 million). The total balance for the

Group was NOK 169.0 million.

At the year-end, the shareholders’ equity for

the Group stood at NOK 63.8 million (NOK

83.8 million), which equates to an equity ratio

of 37.7 % (39.4 %). The Board proposes a

dividend of NOK 1 per share (NOK 1.50

million), which amounts to a total of NOK

32.2 million (NOK 48.3 million).

With regard to P4’s commitment in South

Africa, the Board has approved financial provi-

sions totalling NOK 32.8 million. These pro-

visions have been necessary due to ICASA’s

refusal to recognise the agreement with NAM

for the transfer of P4’s ownership interests in

the two South African radio stations. The pre-

tax profits for the Group are accordingly redu-

ced by a corresponding figure, and are booked

as financial provisions in line with generally

accepted accounting principles and in accor-

dance with the prudence concept. This provision

does not mean that the company has given up

on the debts.

In accordance with paragraph 5, section 3-3 of

the Norwegian Accounting Act

(Regnskapsloven), there have been no circum-

stances of material consequence for the

Group’s position and profit since the end of

the financial year.

Going concern

The Board confirms that the premise for con-

tinuing operations exists and the annual

accounts for 2001 are prepared according to

the going concern principle.


P4 Radio Hele Norge ASA runs Norway’s only

analogue nationwide commercial radio station.

For Digital radio (DAB), Radio2Digital has a

national licence for the digital network.

Revenues are primarily from the sale of radio

advertising. The company’s head office is in

Lillehammer.

The operating profit for radio activities in

Norway was NOK 57 million (NOK 104

million) -45.1 %, with a turnover of NOK

243.9 million (NOK 272.9 million) -10.6 %.

This equates to an operating margin of 23.4 %

(38.1 %).

Due to the negative development in the subsi-

diary P4 Radio International’s commitment in

South Africa (see below), the parent company

has found it necessary to undertake a write-

down totalling NOK 18.5 million on its shares

in P4 Radio International AS, and allocate

NOK 32.3 million for possible losses on loans

to the company.

Radio’s share of the advertising market as a

whole suffered a decline in 2001 and closed

the year at 4 % (5.6 %).

The listener market as a whole showed great

stability in 2001 with only minor fluctuations.

P4 had a daily listener audience of 25 % and

maintained its clear position as Norway’s

second largest station. This means that the sta-

tion has a daily listener audience of approxi-

mately 1 million people.

For the age group 20-50 years, P4 is the clear

market leader, with a daily listener audience of

36 %. P4 is also the most listened to radio sta-

tion by motorists.

Licence

In 1993, P4 was granted a licence by the

Ministry of Cultural Affairs to operate a natio-

nal commercial radio station. P4’s current

licence expires on 31 December 2003.

Throughout 2001, the station has operated

according to the licence’s framework condi-

tions concerning editorial content and com-

mercial operation. P4 has also assumed a

national responsibility by participating in the

financing of the development of a national

digital network. This commitment will continue

until 2013.

P4 Radio International AS

During the course of the year, it became clear

that the South African broadcasting authorities

(ICASA) were not going to recognise the agree-

ment for the sale of P4’s ownership interests in

the two South African radio stations.

The company had no operating income in

2001, and had a pre-tax loss of NOK -33.3

million.

In Finland, P4 has concentrated its activities

on national radio. P4 International and MTG

Radio AB each own 50 % of Finland Radio

Investment AS. This company controls 26 %

of Radio Nova, Finland’s only national com-

mercial radio station.

P4 Instant Media AS

Activities in this company were heavily marked

by the slump and uncertainty in the Internet

market. In autumn 2001, the company there-

fore decided to give a lower priority to this

area, and hand the operation over to P4 Radio

in 2002. This means that projects directly rela-

ted to radio activities will be given priority.

Stig & Stein Radiobyrå AS

This company was sold in June 2001 as part of

the measures to develop the radio activity in

the Group. The company’s function was pri-

marily to produce radio commercials.

The company had a turnover of NOK 5.7

million in the first half of the year, and a pre-

tax profit of NOK 0.4 million.

Hunderfossen Familiepark AS

Hunderfossen Familiepark AS runs one of

Norway’s largest theme parks just outside

Lillehammer.

P4 owns 34 % of Hunderfossen Familiepark.

Hunderfossen suffered a pre-tax loss of

NOK -3.1 million and had a turnover of

NOK 32.6 million (NOK 40.3 million). P4’s

share of the loss after amortisation of goodwill

amounted to NOK 2.1 million.

Organisation and environment

At the end of 2001, the parent company had

89 employees. The company’s head office is in

Lillehammer, where P4 is a major employer.

The working environment in P4 is good and

the company does not pollute the external

environment.

In general terms, the company has a low rate

of absence due to illness. In 2001, the average

rate of absences due to illness came to approxi-

mately 2 % of the total hours worked. No

employees were involved in accidents at work

or suffered occupational injuries in 2001.

The company carried out restructuring in

2001, which resulted in manpower reductions.

The workforce was reduced without any

redundancies or court action being brought.

The restructuring costs were included in their

entirety in the accounts for 2001.

Financial results 2001

The Board proposes that the loss for 2001 of

NOK -9.8 million be covered as follows:

Dividend proposed NOK 32 233’

- dividend NOK 1 per share,

transferred from other equity NOK 42 049’

Total loss NOK -9 816’

After this, the parent company has distribu-

table equity of NOK 3.6 million.

Future

P4 restructured its activities in 2001 and now

has a clearer focus and more distinct profile.

The company will continue to concentrate its

activities on the core area, with the objective of

further strengthening its position as Norway’s

most popular radio station.

The licence to operate national radio comes up

for review in 2002 and P4 will apply to renew

the licence. P4 has complied with all the con-

ditions of the licence in the current licence

period and is confident that its renewal appli-

cation will be approved. The current licence

states that «renewal will normally be granted».

The advertising market was turbulent in 2001

and P4 is prepared for 2002 being a tough

year for the sale of radio advertising. The com-

pany will carry out a number of activities in

order to maintain and improve the network’s

income and listener figures.

P4 continues to develop and adapt its activities

to the digital radio (DAB) of the future.

The opportunities that digital radio affords can

strengthen the radio medium for both listeners

and advertisers alike.

19Annual report 2001 P4 Radio Hele NorgeAnnual report 2001 P4 Radio Hele Norge18

profit and loss account cash flow statementP4 Radio Hele Norge ASA The Group

1999 2000 2001 (All figures in NOK 1000) Note 2001 2000 1999

256 696 272 900 243 938 Advertising revenue 2,3 244 319 278 104 256 096Sales revenue, goods and services 10 615 12 300 21 421

256 696 272 900 243 938 Operating income 254 934 290 404 277 517

21 606 22 117 22 640 Broadcast costs 22 641 22 117 21 60640 816 45 566 50 960 Programme costs 50 935 45 442 40 816

Costs of purchased goods and services 1 417 2 060 4 93958 624 55 906 72 130 Salaries 4,22 82 997 65 814 69 1535 969 6 617 6 386 Depreciation 19,20 8 244 8 903 8 380

Write-downs 19 2 06933 496 38 660 34 781 Other operating costs 2,5,6 41 453 47 537 44 193

160 511 168 866 186 897 Operating costs 209 756 191 873 189 087

96 185 104 034 57 041 OPERATING PROFIT 45 178 98 531 88 430

-2 948 -60 869 Losses (-) on investments in subsidiaries1 464 -431 -2 093 Losses (-) on inv. in assoc/jointly contr. business 15 -34 806 -8 017 -23 5363 469 5 484 4 210 Other financial income 2,7 4 987 6 226 3 614

-3 004 -2 598 -2 004 Other financial costs 7,12 -442 -3 218 -4 588

-1 019 2 455 -60 756 Net financial items -30 261 -5 009 -24 510

95 166 106 489 -3 715 ORDINARY PROFIT BEFORE TAX 14 917 93 522 63 920

27 910 32 438 6 101 Tax on ordinary profit 10 2 054 29 145 18 711

67 256 74 051 -9 816 PROFIT FOR THE YEAR 12 863 64 377 45 209

Earnings per share 8 0,40 2,00 1,40

INFORMATION ABOUT:14 983 10 479 9 754 Group contributions paid (after tax)40 323 48 387 32 233 Proposed dividend

P4 Radio Hele Norge ASA The Group1999 2000 2001 (All figures in NOK 1000) Note 2001 2000 1999

Net cash flows from operating activities95 166 106 489 -3 715 Profit before tax 14 917 93 522 63 919

-15 205 -23 811 -26 952 Tax paid for the period 10 -27 098 -24 030 -21 9805 969 6 617 6 386 Ordinary depreciation 19,20 10 313 8 903 8 380

46 -36 249 Gain/loss on sale of operating equipment 249 -36 85-952 1 700 Gain/loss on sale of shares -932

2 948 60 869 Loss (-) on investments in subsidiaries1 484 431 2 093 Loss (-) on inv. in assoc/jointly contr. business 15 34 806 8 017 23 536

-6 795 7 342 4 302 Change in customers, stocks, accounts payable 3 723 6 682 -2 537-2 229 -4 968 13 444 Change in other short term balance sheet items 3 895 -6 225 -6 734

80 432 92 064 58 376 Net cash flow from operating activities 40 805 86 833 63 737

Cash flow from investing activities-3 768 -9 759 -7 356 Purchases of tangible and intangible assets 19,20 -9 154 -13 481 -11 599

202 36 Proceeds from sale of tangible fixed assets 36 3581 743 540 Proceeds from sale of shares and participating interests 540 2 577

Expenditure for purchases of shares in subsidiaries-1 608 -317 and associated companies -11 905 -5 208

544 2 107 1 388 Proceeds from other investments 8 064 3 497 544-2 118 Expenditure for purchases of other investments -6 394 -9 643 -11 663

Cash proceeds of sale of subsidiaries -1 029 -2 002-28 381 -33 461 -14 563 Expenditure for financing subsidiaries

-31 268 -42 972 -20 531 Net cash flow from financing activities -8 513 -32 958 -24 991

Cash flow from financing activitiesProceeds/expenditures, new long-term debt -683 7 157

-24 194 -40 323 -48 387 Dividend paid -48 387 -40 323 -24 194-637 Purchase of own shares 25 -637

-24 194 -40 323 -49 024 Net cash flow from financing activities -49 024 -41 006 -17 037

24 970 8 769 -11 179 Net change in cash and cash equivalents -16 732 12 869 21 70943 990 68 960 77 729 Cash and cash equivalents, beginning of year 85 867 72 998 51 289

68 960 77 729 66 550 Cash and cash equivalents, year end 9 69 135 85 867 72 998

20 Annual report 2001 P4 Radio Hele Norge Annual report 2001 P4 Radio Hele Norge 21

balance sheetP4 Radio Hele Norge ASA The Group

1999 2000 2001 (All figures in NOK 1000) Note 2001 2000 1999ASSETS

2 589 Development costs 19 2 589 3 388 7 029Goodwill 19 763 12 141

7 644 6 259 15 388 Deferred tax assets 10 25 277 15 704 17 692

7 644 6 259 17 977 Total intangible assets 27 866 19 855 36 862

2 631 4 584 3 323 Leashold improvements 20 3 323 5 326 3 4286 216 7 405 6 798 Fixture and fittings, equipment, etc. 20 6 798 8 029 8 432

8 847 11 989 10 121 Total tangible fixed assets 10 121 13 355 11 860

16 694 26 843 336 Investments in subsidiaries 1348 548 67 456 33 750 Loans to group undertakings 189 562 9 131 7 037 Investments in associated companies 14,15 7 037 9 131 9 562

Inv. in jointly controlled businesses 14,15 6 868 6 941785 500 214 Loans to assoc./jointly contr. business 14,15 909 25 179 21 417227 227 227 Investments in shares 12 227 227 227

6 155 4 333 9 401 Other receivables 16,22 9 401 4 651 5 512

81 971 108 490 50 965 Total financial fixed assets 24 442 46 129 36 718

98 462 126 738 79 063 Total fixed assets 62 429 79 339 85 440

33 247 30 924 23 792 Trade debtors 11 24 268 32 419 35 1631 753 3 747 4 932 Other receivables 17 12 348 14 619 3 761

35 000 34 671 28 724 Total receivables 36 616 47 038 38 924

3 641 213 853 Market-based shares 12 853 213 3 641

68 960 77 729 66 550 Bank deposits, cash etc. 9 69 135 85 867 72 998

107 601 112 613 96 127 Total current assets 106 604 133 118 115 563

206 063 239 351 175 190 TOTAL ASSETS 169 033 212 457 201 003

P4 Radio Hele Norge ASA The Group1999 2000 2001 (All figures in NOK 1000) Note 2001 2000 1999

EQUITY AND LIABILITIES 32 258 32 258 32 258 Share capital 32 258 32 258 32 258

-25 Own shares -2519 117 19 117 19 117 Share premium account 19 117 19 117 19 117

51 375 51 375 51 350 Total paid-up share capital 51 350 51 375 51 375

38 544 64 209 21 548 Other reserves 12 431 32 411 16 780

89 919 115 584 72 898 Total equity 25,26 63 781 83 786 68 155

Other long-term liabilities 8 437

8 586 13 605 10 775 Trade creditors 10 884 14 906 11 27523 786 26 952 11 438 Tax payable 10 11 654 27 209 24 64212 689 12 556 9 853 Unpaid public charges and taxes 9 868 13 343 14 25340 323 48 387 32 233 Dividend 32 233 48 387 40 32330 760 22 267 37 993 Other current liabilities 21 40 613 24 826 33 918

116 144 123 767 102 292 Total current liabilities 105 252 128 671 124 411

116 144 123 767 102 292 Total liabilities 105 252 128 671 132 848

206 063 239 351 175 190 TOTAL EQUITY AND LIABILITIES 169 033 212 457 201 003

Oslo, 21 March 2002


Pelle TörnbergChairman of the Board

Endre Røsjø Paul A. Rabl Tor Andersen

Hans-Holger Albrecht Line Fuglehaug

Hein Espen HattestadCEO

NOTE 1

Annual report 2001 P4 Radio Hele Norge22 Annual report 2001 P4 Radio Hele Norge 23

accounting policiesCONSOLIDATION PRINCIPLESConsolidated companiesThese consolidated accounts have beenprepared as if the Group were a singleunit. The accounts include the ParentCompany, P4 Radio Hele Norge ASAand the subsidiaries of which P4 RadioHele Norge ASA directly or indirectlyowns more than 50 per cent of the sharesor by agreement has a controlling inte-rest in the company.

Subsidiaries acquired during the yearare fully consolidated in the balancesheet at 31.12, and the profit and lossaccount shows the profit/loss generatedfrom the time of acquisition until31.12. For subsidiaries sold during theyear, transactions from 01.01 to thetime of sale are included in the profitand loss account.

Investments in associated companies inwhich the Group owns between 20 and50 per cent of the shares and in whichthe Group has a controlling interest aretreated according to the equity method.

Elimination of shares insubsidiaries/goodwillShares in subsidiaries are eliminatedagainst the subsidiaries’ equity at thetime of acquisition. Difference in valueat the time of acquisition is attributedto the relevant assets and subsequentlydepreciated in line with same. Excessvalues that cannot be attributed toassets are entered into the consolidatedbalance sheet as financial goodwill andamortised over five years.

Translation of foreign subsidiaries All balance sheet items referring to fore-ign subsidiaries are translated into NOKusing the exchange rate on 31.12.Average exchange rates for the financialyear as a whole have been used for pro-fit and loss account translations.

The translation differences that ariseduring consolidation are included inthe consolidated balance sheet underOther reserves.

Associated companiesAssociated companies are companies ofwhich the Group owns 20 per cent ormore without having a controllinginterest. Ownership interests in associa-ted companies are valued according tothe equity method in the consolidatedaccounts. In accordance with generallyaccepted accounting principles, tempo-rary investments are not considered asassociated companies.

Elimination of internal transactionsIn the consolidated accounts, all signi-ficant accounts and transactions for theyear between consolidated subsidiarieshave been eliminated.

VALUATION AND CLASSIFICATION PRINCIPLESGeneralThe annual accounts have been prepa-red in accordance with the NorwegianAccounting Act of 17 July 1998 andgenerally accepted accounting princi-ples, and are based on the fundamentalaccounting principles defined in thesaid Act.

Principles for valuing and classifyingassets and liabilitiesAssets and liabilities linked to theCompany’s operating activities are clas-sified as current assets and short-termliabilities, respectively. Other receiva-bles and other short-term liabilities areclassified as short-term items if they falldue within a year of the closing of theaccounts. Other assets and liabilitiesare classified as fixed assets and long-term liabilities respectively.

Fixed assets are valued at original cost

but written down to fair value whenthe fall in value is not expected to betransitory. Fixed assets with a limitedeconomic life are depreciated accordingto plan. Long-term liabilities are ente-red in the balance sheet at the nominalamount received at the time of esta-blishment.

Current assets are valued at the lower oforiginal cost price and fair value.Current liabilities are entered in thebalance sheet at the nominal amountreceived at the time of establishment.

Trade debtorsTrade debtors are valued at their antici-pated fair value at 31.12 and are ente-red in the balance sheet after deduc-tions for provisions to cover anticipatedlosses.

Shares in subsidiariesShares in subsidiaries are valued in theParent Company accounts according tothe general valuation rules laid down inthe Accounting Act, in accordance withsection 9-3 in the transitional provisi-ons. According to these, shares in subsi-diaries are valued at purchase cost withthe addition of Group contributionsreceived (net Group contributions afterallowance for tax).

Shares in associated companies andjointly controlled companiesShares and units in associated compani-es are included in the Parent Companyaccounts and valued according to theequity method. Excess value linked toinvestment in associated companies isdepreciated over five years.

Shares in other companiesLong-term investments in shares incompanies that are neither subsidiariesnor associated companies are booked tothe balance sheet at cost.

Tangible fixed assets/depreciationTangible fixed assets are valued at his-torical cost with deductions for accu-mulated ordinary depreciation.Ordinary depreciation is carried out inaccordance with a fixed depreciationplan and calculated on a straight-linebasis over the expected economic life ofthe asset.

Leasehold improvements are deprecia-ted over the expected remaining periodof the lease.

Gains and losses on the sale of opera-ting equipment are entered in the pro-fit and loss account as ordinary opera-ting income/costs.

Capitalised development costsCommercial projects are developed inthe Group on an ongoing basis. It nor-mally takes a certain amount of timefrom the initialisation of a project tooperational start-up. Initial costs con-cerning such projects are entered intothe balance sheet as a closer evaluationof the commercial potential shows thatthe project has long-term value for theCompany.

Project costs are entered into the balancesheet at cost. When each project entersregular operation, capitalised develop-ment costs are depreciated in line withincome earned. The intention here isto achieve the best possible matchingof the income and costs related to theinvestment. If the actual value is signi-ficantly lower than the book value, andthis is due to non-transitory factors,the capitalised costs are written downto fair value.

Other intangible assetsOther intangible assets are capitalisedto the extent that the criteria for balan-cing have been fulfilled.

PensionsPensions are entered into the accountson the basis of the linear earnings pro-file and expected final salary.Deviations in estimates and pensionplan changes are amortised over theexpected remaining earning period tothe degree that they exceed 10 per centof the greater of pension obligations orpension funds (corridor). Employer’snational insurance contributions areincluded in the amounts.

Pensions are entered into the accountson the basis of actuarial calculations.

Sales revenueAdvertising revenue is regarded as earned once the advertisement in ques-tion has been broadcast and is thereforeentered as income on transmission.

Income from sales of other goods andservices is entered as income in theperiod in which the sale was made.Other income is booked in the periodin which it was earned. Income that isnot earned is capitalised as unearnedincome.

Leasing contractsContracts concerning the lease of stu-dio equipment, vehicles and the like aretreated in the same way as ordinary lea-sing contracts in the accounts. Leasingcharges are classified as ordinary opera-ting costs. Any prepaid leasing chargesare accrued over the leasing period.

TaxesTaxes are expensed as they arise; i.e. taxcosts are linked to the accounting pro-fit/loss before tax.

Tax costs consist of tax payable (tax onthe taxable income for the year) andthe change in net deferred tax. Tax

costs are split between result from ordi-nary operations and extraordinaryitems in accordance with the tax base.Deferred tax and deferred tax assets areentered into the balance sheet as netamounts.

Provisions for deferred tax are madeaccording to the liability method wit-hout discounting. Deferred tax in thebalance sheet is based on the set-offmethod. This means that any capitali-sed tax asset/obligation is a netamount.

24

PURCHASE AND SALE OF COMPANIES

2001At 31 December 2001, long-term receivables for the companies in South Africa werewritten down by a further 32,757 in the consolidated accounts. In 1999, these recei-vables were written down by 25,000. The write-down in 2001 was carried out after itbecame clear in May 2001 that ICASA would not approve the agreement with NAMconcerning the transfer of P4’s ownership interests in the two South African radiostations. See the annual report for details. On this basis, the Parent Company foundit necessary to write down its shares in P4 Radio International AS by 18,540 and tomake a provision of 32,308 for possible losses on loans to the Company.

With effect from 1 July 2001, P4 sold 100 per cent of its shares in Stig og SteinRadiobyrå AS. As the activities of this company are insignificant in relation to the P4Group, pro forma figures have not been prepared.

In spring 2001, Finland Radio Investment AS (FRI) purchased a further 5.2 per centof the shares in Suomen Radioviestintä Oy. This increased its shareholding to 68.8per cent. In 2000, FRI purchased 100 per cent of the shares in the company Special-Hopea Oy Suomi as well as 63.6 per cent of the shares in Suomen Radioviestintiä Oy.Each of these companies owns 13 per cent of the shares in Suomen Uutisradio Oy,which runs the Finnish national radio station Radio NOVA.

2000In autumn 2000, P4 Radio International AS sold 50 per cent of its shares in FinlandRadio Investment AS to MTG.

The companies owned in Hungary and the Czech republic were discontinued in 2000.

With effect from 1 January 2000, P4 sold 100 per cent of its shares in P4 Event AS toleading employees of the company. As the activities of this company are insignifi-cant in relation to the P4 Group, pro forma figures have not been prepared.

ELIMINATIONS

Under operating income for the Group, eliminations in the amount of 2,226 havebeen registered on intercompany deliveries. Under financal items, eliminations inthe amount of 240 have been registered on intercompany interest charges.


NOTE 1


notes

NOTE 2

BUSINESS AREAS

As of 31 December 2001, the Group has a single business area; radio, which is linked to P4 Radio Hele Norge ASA. The business areas of radioadvertising production and Internet portals, which were linked to Stig og Stein Radiobyrå AS og P4 Instant Media AS, were sold and discontinued,respectively, in 2001. The subsidiary P4 Radio International AS functions as a holding company for all activities outside the Nordic region. Alltransactions between business areas are carried out under normal business terms.

All operating income in the Group is generated from business activities in Norway.

P4 Radio Hele Norge P4 Radio International Stig og Stein Radiobyrå P4 Instant Media(Group)

PROFIT AND LOSS ACCOUNT 2001 2000 2001 2000 2001 2000 2001 2000

Operating income 243 938 272 900 5 672 10 648 3 097 7 423Operating costs 186 897 168 866 1 413 4 253 5 328 10 358 16 481 7 652Operating profit/(-)loss 57 041 104 034 -1 413 -4 253 344 290 -13 384 -229

Income subsidiaries/assoc. companies -62 962 -431 -32 712 -7 586Net financial items 2 206 2 887 785 702 21 47 -175 -114Profit before tax -3 715 106 489 -33 340 -11 137 365 337 -13 559 -342

Tax -6 101 -32 438 9 296 3 399 -199 3 794 94

Profit after tax -9 816 74 051 -24 044 -7 738 365 138 -9 765 -249

BALANCE SHEET

Fixed assets 79 063 126 738 26 318 41 365 1 066 175 3 716Current assets 96 127 112 613 8 147 14 435 2 873 2 121 2 978

Total assets 175 190 239 351 34 465 55 800 3 939 2 296 6 694

Equity 105 131 115 584 -32 370 -8 326 2 266 125 136Long-term liabilities 64 612 63 002 1 436 4 287Current liabilities 70 059 123 767 2 224 1 124 1 673 736 2 271

Total equity and liabilities 175 190 239 351 34 465 55 800 3 939 2 296 6 694

NOTE 3

(All figures in NOK 1000 unless otherwise indicated)

26

SALARIES AND OTHER REMUNERATION

The Parent Company The Group

Salary costs 2001 2000 2001 2000

Salaries 61 471 46 707 71 589 55 380National insurance contributions 9 218 7 833 9 595 8 664Pension costs 654 636 640 684Other remuneration 787 729 1 173 1 087

Total 72 130 55 906 82 997 65 814

Average number of employees 101 96 104 112

Remuneration to senior personnel CEO Board

Salaries* 1 384 762Pension costs 7 0Other remuneration 24 0

* CEO salary concerns two different persons

There are no agreements concerning severance pay to the CEO or members of theBoard.

At 31 December 2001, there were bonus agreements for the CEO and the GroupManagement Team based on the achievement of goals according to specified criteria.In addition, the Annual General Meeting approved a share option programme forsenior personnel and for 2 board members. It was decided to issue 2,100,000 sub-scription rights, which provide those entitled to subscriptions the right to request theissue of shares in the parent company. The subscription rights could not be exercisedbefore 2 May 2001 and any rights not exercised by 1 November 2003 would be annul-led. As payment for the issue of the new shares, the subscription holders are to payNOK 60 per share issued with a nominal value of NOK 1, with the exception of theCEO, whose strike price has been set at NOK 50 per share issued.

Auditors The Parent Company The GroupAudit fees 322 433Consultancy 388 461

OTHER OPERATING COSTSThe Parent Company The Group

2001 2000 2001 2000Costs, premises 4 949 4 972 5 262 5 675Fittings, fixtures, equipment,maintenance 2 461 2 186 2 707 3 152Fees 6 596 1 870 9 565 8 178Office supplies, phones, communication 5 498 5 577 5 750 6 256Travel costs 2 858 3 213 3 230 3 609Marketing, entertainment 7 180 15 368 8 764 15 947Bad debts 1 751 56 2 340 -39Other operating costs 3 488 5 419 3 834 4 759

Total other operating costs 34 781 38 660 41 453 47 537


NOTE 4


SIGNIFICANT RENTAL AGREEMENTSThe company has valid contracts for the rent of premises in Lillehammer, Bergen,Oslo and Tromsø. The rental agreement on the premises in Lillehammer expires on 1April 2003, but P4 has an option to extend. Expensed rental charges in 2001 for thepremises in Lillehammer amount to 737.

The Company’s rental agreement concerning the premises in Oslo expires on 31December 2006. Expensed rental charges amount to 1,601. In accordance with thecontract, P4 has an option to extend for 5+5 years.

Other rental agreements have been expensed in the combined amount of 1,401. Thisalso includes leases on computer equipment and vehicles, as well as the lease ofthe Media Centre at Hunderfossen Familiepark.

AGGREGATED ITEMSThe Parent Company The Group

Other financial income 2001 2000 2001 2000Interest income 4 098 4 051 4 415 4 062Other financial income 112 1 433 572 2 164

Total other financial income 4 210 5 484 4 987 6 226

The Parent Company The GroupOther financial costs 2001 2000 2001 2000Interest costs 205 291Write-downs on other financial current assets 1 906 19 1 906Other financial costs 2 004 487 423 1 021

Total other financial costs 2 004 2 598 442 3 218

EARNINGS PER SHARE2001 2000 1999

Earnings per share (NOK) 0,40 2,00 1,40Profit for the year (NOK 1000) 12 863 64 377 45 209Time-weighted number of ordinary shares (NOK 1000) 32 245 683 32 258 080 32 258 080Average number of ordinary shares 32 233 080 32 258 080 32 258 080

CASH IN BANK AND AT HAND, ETC.

Of bank deposits, restricted tax funds total NOK 4,535 for the Parent Company andNOK 5,063 for the Group.

NOTE 5

NOTE 6

NOTE 7

NOTE 8

NOTE 9

28

TAXES

Tax for the year comprises:

The Parent Company The Group

Tax payable 15 231 11 466Change in deferred tax -9 129 -9 412Insufficient provisions for tax in previous years 0 0

Tax on ordinary profit 6 101 2 054

Reconciliation from nominal to actual tax rate:

Ordinary profit before tax -3 715 14 917

Expected income tax according to nominal tax rate (28 %) -1 040 4 177

Tax effect of the following items:Non-deductible costs 628 630Goodwill amortisation 153Write-downs, shares in subsidiaries 7 997 0RISK -1 289 -1 289Other items -194 -1 617

Estimated tax 6 101 2 054

Actual tax rate -164,2 % 13,8 %

Specification of tax effect of temporary differences

The Parent Company The Group2001 2000 2001 2000

Tangible fixed assets 2 604 2 005 2 631 2 009Receivables 9 705 777 19 308 9 954Shares 3 273 3 577 3 528 3 841Pension funds -390 -240 -390 -240Current liabilities 196 140 200 140

Net capitalised deferred tax assets 15 388 6 259 25 277 15 704

The likelihood of the deferred tax assets is based on expected future earnings and inter-company Group contributions.

TRADE DEBTORS


Trade debtors 26 392 32 254 27 418 33 809- Provisions for possible losses -2 600 -1 330 -3 150 -1 390

Net trade debtors 23 792 30 924 24 268 32 419


NOTE 10

NOTE 11


SHARESPurchase Book

Current assets Shareholding price valueElectric Farm ASA 640 640Cotech Ltd. (formerly CoShopper) 1 % 2 118 213

Total 2 758 853

Fixed assetsHit Company Management AS 1) 22 % 200 200Other shares 0 % 27 27

Total 227 227

1) Activity in the company is insignificant and the shareholding is therefore presentedaccording to the cost method.

SHARES IN SUBSIDIARIES

Shares owned by P4 Registered ShareRadio Hele Norge ASA: office holding VotesP4 Radio International AS Lillehammer 100 % 100 %P4 Instant Media AS Lillehammer 100 % 100 %Nyby Internettportal AS Lillehammer 100 % 100 %P4 Tomt Selskap AS Lillehammer 100 % 100 %

Shares owned by subsidiaries:P4 Radio AS (Denmark) Copenhagen 100 % 100 %

SHARES IN ASSOCIATED COMPANIES AND JOINTLY CONTROLLED COMPANIES

Shares owned by P4 Registered ShareRadio Hele Norge ASA: office holding VotesHunderfossen Familiepark AS Lillehammer 34 % 34 %

Shares owned by subsidiaries:

Finland Radio Investment AS Lillehammer 50 % 50 %P4 Radio Durban (Pty.) Ltd. Durban 20 % 20 %P4 Radio Cape Town (Pty.) Ltd. Cape Town 20 % 20 %

NOTE 12

NOTE 13

NOTE 14

30

INVESTMENTS AND LOSSES ON INVESTMENTS IN ASSOCIATED COMPANIES AND JOINTLY CONTROLLED BUSINESSESP4 Radio P4 Radio

Hunderfossen Cape Town Durban Finland RadioFamiliepark AS (Pty.) Ltd. (Pty.)Ltd. Investment AS Total

Shareholding 34 % 20 % 20 % 50 %

Purchase price 9 200 913 0,3 6 940 17 053Capitalised equity at the time of purchase 2 918 913 0,3 6 940 10 771Attributable excess value 6 282 6 282

Opening balance, 1.1.2001 9 131 6 941 16 072Disposals in the period 0Additions in the period 0Share of profits for the year -764 -73 -837Deprec. on attributable excess value -1 255 -1 255Adjustment to share of profits for 2000 -74 -74

Investments in associated companies and jointly controlled businesses at 31.12 7 037 6 868 13 905

Of which, non-depreciated attributable excess value 628 628

Share of profits for the year -764 -73 -837Depreciation on attributable excess value -1 255 -1 255Write-down, receivables -14 665 -17 975 -32 640Adjustment to share of profits for 2000 -74 -74

Losses on investments in associated companiesand jointly controlled businesses -2 093 -14 665 -17 975 -73 -34 806

RECEIVABLES WITH MATURITY PERIODS IN EXCESS OF ONE YEARThe Parent Company The Group

2001 2000 2001 2000Loans to employees 671 685 671 685Net pension funds 1 391 856 1 391 856Other long-term receivables 7 339 2 792 7 339 3 110

Total other long-term receivables 9 401 4 333 9 401 4 651

Loans to employees are subject to 7 %.

RELATED PARTIESIn the work to discontinue P4 Radio International AS’ investments in P4 Radio Cape Town (Pty.) Ltd. and P4 Radio Durban (Pty.) P4 Radio Durban(Pty.) Ltd., P4 has sought assistance from MTG AB. The basis for this is that MTG has available resources in South Africa that can assist P4. P4does not have the administrative resources available itself.

MTG is financing the operation of the companies in South Africa during a period originally set to six months from November 2001, and, in paral-lel, is to assist P4 Radio International AS with the discontinuation of the investments in the best possible manner. In addition to minor amountsinvested in shares in the companies, the investments consist of loans to the companies. On the sale of the companies, P4 Radio International isto cover MTG AB’s costs for the operation of the stations. MTG is subsequently to receive remuneration for its assistance by arrangement. A draftcontract between MTG AB and P4 Radio International AS defining the details of this agreement has been prepared and will be officially adoptedin spring 2002.

P4 Radio International AS and MTG Radio AB each own 50 % of the shares in Finland Radio Investment AS (FRI). FRI owns 100 % of the sharesin Special-Hopea Oy Suomi and 68.8% of the shares in Suomen Radioviestintiä Oy. Each of these Finnish companies owns 13 % of SuomenUutisradio Oy, which runs the national commercial radio station Radio Nova. There is a collaboration agreement between MTG Radio AB and P4Radio International AS concerning FRI. None of the Finnish companies has generated significant activity in 2001.

Hein Espen Hattestad is CEO of MTG Norge AS. He has also been acting CEO of P4 Radio Hele Norge ASA following the departure of the Company’sprevious CEO in October 2001. He will relinquish his temporary duties as soon as Rune Brynhildsen takes over as CEO of P4 Radio Hele Norge ASAon 1 April 2002.

Mats Blomberg is employed by MTG AB, but since 24 October 2001, he has been hired by P4 Radio Hele Norge ASA to assist the acting CEO inmanaging the Company.

Both Mr Hattestad and Mr Blomberg have issued assurances to P4 Radio Hele Norge ASA that they will treat with utmost confidentiality all infor-mation of which they may become aware through the performance of their duties for P4.


NOTE 15

NOTE 16

NOTE 17


INTERCOMPANY ACCOUNTSP4 Radio Instant

Intl. Media Misc. Total

Debt to Parent Company 32 304 1 436 10 33 750

INTERCOMPANY INTANGIBLE ASSETS

R&D costs Goodwill TotalAcquisition cost per 01.01 3 683 6 535 10 218Additions 2001 4 411 4 411Reductions in acquisition value 5 482 6 535 12 017Acquisition value at 31.12 2 613 2 613Acc. ordinary depreciation, 01.01 295 5 772 6 067Reductions in acc. ordinary depreciation 1 343 6 317 7 660Depreciation for the year 1 072 545 1 618Acc. ordinary depreciation, 31.12 24 24Write-downs for the year 2 069 2 069Book value at 31.12 2 589 2 589

Ordinary straight-line depreciation rates 20 % 20 %

R&D costs refer to the establishment of the Internet portals nyby.no, p4.no, and etter6.com. nyby.no and etter6.comwere discontinued in 2001 so the R&D costs for these portals have been written down to NOK 0 at 31.12. Theremaining capitalised R&D costs - which refer to P4.no - were transferred from P4 Instant Media to the ParentCompany as of 31.12.01.

TANGIBLE FIXED ASSETS

Fittings, fixtures,The Parent Company equipment, etc. Leasehold improvements TotalAcquisition cost per 01.01 28 214 11 011 39 225Additions 2001 4 034 710 4 744Reductions in acquisition value 156 561 717Acquisition value at 31.12 32 092 11 160 43 252Acc. ordinary depreciation, 01.01 20 809 6 402 27 211Reductions in acc. ordinary depreciation 150 292 442Depreciation for the year 4 634 1 728 6 361Acc. ordinary depreciation, 31.12 25 293 7 837 33 130Book value at 31.12 6 799 3 323 10 122

Ordinary straight-line depreciation rates 20-33.33 % 20 %

Fittings, fixtures,The Group equipment, etc. Leasehold improvements TotalAcquisition cost per 01.01. 30 681 12 361 43 042Additions 2001 4 034 710 4 744Reductions in acquisition value 2 167 1 910 4 077Acquisition value at 31.12 32 548 11 161 43 708Acc. ordinary depreciation, 01.01 22 652 7 035 29 687Reductions in acc. ordinary depreciation 1 730 997 2 727Depreciation for the year 4 827 1 799 6 626Acc. ordinary depreciation, 31.12 25 749 7 837 33 587Book value at 31.12 6 799 3 323 10 122

Ordinary straight-line depreciation rates 20-33.33 % 10-20 %

NOTE 18

NOTE 19

NOTE 20

32

OTHER CURRENT LIABILITIES


Salaries, holiday pay, etc. 16 289 7 133 16 356 7 558Prepayments from customers 16 997 8 354 16 997 8 354Accrued costs 4 452 6 034 4 852 7 686Other current liabilities 255 747 2 408 1 228

Total other current liabilities 37 993 22 267 40 613 24 826

PENSIONS

Pension costs 2001 2000 1999 Pension rights earned during the year 1 299 1 117 809 Interest costs on pension obligations 269 182 93 Employer’s NICs 179 157 106

Pension costs (gross) 1 747 1 456 1 008

Expected return on pension funds -360 -235 -128 Booked estimate changes and deviations 65 47 -24

Pension costs (net) 1 452 1 268 856

Pension obligations - balance at 31.12 2001 2000 1999Current value of obligations -5 415 -3 905 -2 230Pension funds 5 734 3 994 2 442Deferred obligations on losses 900 661 Accrued employer’s NICs 172 106 30

Net pension funds/obligations (-) 1 391 856 242

P4 Radio Hele Norge ASA has entered into an agreement with a life insurance company concerning a group life insurance scheme for its employees.This pension scheme involves 109 people.

In the accounts, the pension scheme is dealt with in accordance with Norwegian Accounting Standards for pension costs.

Estimated obligations at 31.12.2001 were used in the measurement of accrued pension obligations. The accrued pension obligations were calcu-lated by an actuary.

The following conditions were used as the basis for the calculation:Discount rate for calculating obligations 7.00 %Future salary development 3.30 %Regulation of fundamental social security amoun t 3.30 %Expected return on funds 8.00 %Increase in instalment pension 2.50 %Employer’s national insurance contributions 14.10 %Staff turnover 5.00 %

GROUP GUARANTEE LIABILITY2001 2000 1999

Security liability, capped to 2 921 5 399 9 028

DISPUTES

In Autumn 2000, P4 Radio Hele Norge ASA initiated legal proceedings against the Ministry of Finance of the Norwegian State as the Companycontests the conclusion and the claim raised in a governmental tax audit report from 1996. The disagreement concerns the charges on competiti-ons run over the radio, and the prizes that P4’s partners give away through these competitions. The case was brought before Oslo District Court inMarch 2001, and a decision against P4 was handed down on 31 May 2001. The case has now been referred to Borgarting Court of Appeal.

No provisions have been made in the accounts for this case, as P4 - on the basis of the opinion ofthe Company’s legal representative - believes that it is very likely that the appeal will be successful.


NOTE 21

NOTE 22

NOTE 23

NOTE 24


CHANGE IN EQUITYShare

Share Own premium Other Profit TOTALThe Parent Company capital shares account reserves for the year Equity

Balance at 01.01 32 258 19 117 64 210 115 584Purchase of own shares -25 -613 -638Profit for the year -9 816 -9 816Allocation of profit for the year -9 816 9 816 0Dividend -32 233 -32 233

Balance at 31.12 32 258 -25 19 117 21 548 72 898

ShareShare Own premium Other Profit TOTAL

The Group capital shares account reserves for the year Equity

Balance at 01.01 32 258 19 117 32 411 83 786Purchase of own shares -25 -613 -638Profit for the year 12 863 12 863Allocation of profit for the year 12 863 -12 863 Dividend -32 233 -32 233Elimination differences 3 3

Balance at 31.12 32 258 -25 19 117 12 431 63 781

In 2001 P4 Radio Hele Norge ASA purchased 25,000 of its own shares at a total cost price of 636.

SHAREHOLDERS / OWNERSHIP STRUCTURE

The share capital in P4 Radio Hele Norge ASA as of 31 December 2001 consists of the following categories of shares:

Number Nominal value Capitalised

A-shares 32 258 080 NOK 1 32 258 080

Each share carries the same rights in the Company. The Board may refuse to assign shares if such assignment will entail a breach of theCompany’s agreement of licence.

See note 4 for details of the share option programme for senior personnel.

In accordance with P4’s licence, no investor is permitted to own more than 33.3 per cent of the Company. At 31 December 2001, there were 649Norwegian shareholders in the Company. A total of 50 overseas owners were registered, with a combined shareholding of 53.4 per cent. In additi-on, the Swedish media company Modern Times Group AB owns 33.1 per cent of P4 through its Norwegian media companies.

At 31 December 2001, the three largest shareholders in the Company were Modern Times Group (33.1 %), Endre Røsjø (12.5 %) and State StreetBank & Trust Co. (12.2 %).

Hein Espen Hattestad, CEO, owned 7,000 shares at 31 December 2001. As regards the members of the Board of Directors, Endre Røsjø owned4,018,620 shares and Tor Andersen 3,000 at the end of the year. See note 4.

The largest shareholders in P4 Radio Hele Norge ASA as of 31 December 2001 were:A-shares Shareholding

Modern Times Group 10 022 366 31.1 %Banque Invik SA Luxembourg, (Endre Røsjø) 4 018 620 12.5 %State Street Bank & Trust Co. 3 951 238 12.2 %JPMorgan Chase Bank, Clients Treaty Account 3 116 081 9.7 %Fidelity Funds, Brown Brothers Harriman 1 455 400 4.5 %K-Avkastning (unit trust) 1 200 000 3.7 %K-Vekst (unit trust) 1 000 000 3.1 %JPMorgan Chase Bank, Omnibus Account 891 911 2.8 %Boston Safe Dep. & Trust 729 700 2.3 %Lazard International Fund 724 800 2.2 %Metro Norge AS 651 142 2.0 %Brown Brothers Harriman & Co. 450 000 1.4 %

Total, largest shareholders >1% ownership share 28 211 258 87.5 %

Total, others 4 046 822 12.5 %

Total number of shares 32 258 080 100.0 %

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P4 Radio Hele Norge ASA • Servicebox NO-2626 Lillehammer Norway • Telephone +47 61 24 84 44 • Telefax +47 61 24 84 45 • Org.no. 963789505 mva • www.P4.no

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P4 · P4 makes significant contributions to a variety of public authorities and social institutions. In 2001, P4 spent more than NOK 135 million on various social causes. Culture