Eniro: YEAR-END REPORT 2014

Regulatory News:

Eniro (STO:ENRO)

The Board of Directors proposes a fully guaranteed rights issue of common stock approximately SEK 458 M and a placed directed issue of convertible bonds of nominal value of SEK 500 M in combination with an amended loan agreement including reduced amortization and extended duration. The issues are being carried out to create greater financial flexibility and realize the company’s strategy. The fourth quarter was initially strongly affected by the uncertainty surrounding the company, but was followed by a recovery in December. Adjusted EBITDA for 2014 was SEK 675 M.

Fourth quarter: October–December 2014

· Total operating revenue amounted to SEK 722 M (952), a decrease of 24%. Revenue decreased organically by 17% (-15%).

· Revenue from Desktop and Mobile search amounted to SEK 415 M (496), a decrease of 16%. Revenues decreased organically by 15% (-7%). Revenue from Mobile search grew organically by 3% (84%). During Q4, 31% of total searches were performed via the mobile channel.

· Total multiscreen revenue (Desktop search, Mobile search and Campaign products) decreased organically by 11% (-5%). Revenue was negatively affected by weak sales following the turmoil around the company during the fourth quarter.

· EBITDA amounted to SEK 134 M (148) and was negatively affected primarily by weak sales. The EBITDA margin was 18.6% (15.5%). Adjusted EBITDA was SEK 160 M (212). The adjusted EBITDA margin was 22.2% (22.3%).

· The amortization of SEK 187 M due on December 31, 2014, was reduced by SEK 90 M to SEK 97 M, in accordance with an agreement with the bank consortium.

· Net income for the period totaled SEK 52 M (-80) and earnings per common share for the period were SEK 0.40 (-0.88).

· Operating cash flow totaled SEK 134 M (207).

Full year: January–December 2014

· Total operating revenue amounted to SEK 3,002 M (3,588), a decrease of 16%.

· Revenue from Desktop and Mobile search amounted to SEK 1,869 M (2,136), a decrease of 13%. Revenues decreased organically by 11% (-2%).

· Total multiscreen revenue decreased organically by 8% (-1%).

· EBITDA amounted to SEK 631 M (777) and was negatively affected by weak sales, while capital gains during the first six months and net savings had a positive effect. The EBITDA margin was 21.0% (21.7%). Adjusted EBITDA was SEK 675 M (884). The adjusted EBITDA margin was 22.5% (24.6%).

· Income for the year amounted to SEK -1,662 M (179) and was negatively impacted mainly by an impairment loss of SEK 1,797 M. Earnings per common share for the year were SEK -17.09 (1.29).

· Operating cash flow totaled SEK 151 M (329).

Events during the fourth quarter

· The Board of Directors appointed Stefan Kercza as permanent President and CEO of Eniro.

Events after the end of the reporting period

· The Board of Directors has announced a rights issue of common stock of approximately SEK 458 M and a placed directed issue of convertible bonds of nominal SEK 500 M. The issues are being carried out to create greater financial flexibility and realize the company’s strategy. The main shareholders in Eniro, Staffan Persson (with companies) and Danske Capital as well as among others the company’s chairman Lars-Johan Jarnheimer, have submitted irrevocable subscription commitments for subscription of shares corresponding to their respective pro rata shares of the rights issue, as well as declared their intention to vote in favor of both issues at the Extraordinary General Meeting. The remaining share of the rights issue is guaranteed by a consortium, comprising mainly Swedish institutional investors including Catella and Bure Equity.

· Extraordinary General Meeting to be held on March 9, 2015. The Annual General Meeting will be held on March 27, 2015.

· Eniro has reached an agreement to amend its loan agreement with the bank consortium by extending its term through 2018, reducing the amortizations from SEK 375 M annually to SEK 150 M in 2015 and to SEK 175 M annually for the years 2016–2018. The amendments are conditional on the completion of the planned issues.

· EBITDA for 2015 is expected to be in line with 2014.

· Pierre Mårtensson resigned in January 2015 as CEO of Eniro Norway. Mattias Wedar, a member of Group Management and Head of Group Product and Marketing, was appointed as acting CEO of the Norwegian company.

· Allan Jakobsen has been appointed as CEO of Eniro Denmark and will be a member of Group Management. He will assume his position in March 2015.

The information in this year-end report is such that Eniro AB (publ) is obligated to disclose pursuant to the Securities Market Act. This information was submitted for publication on February 6, 2015, at 8:00 a.m. CET.

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