Sanoma names Harri-Pekka Kaukonen as president and CEO, replacing Eija Ailasmaa, renews structure, organization of company into seven business units

Kendall Sinclair

HELSINKI , August 5, 2011 (press release) – Sanoma has decided to renew its structure and organisation to speed up digital transition and organic growth. In the future, Sanoma will focus on media and learning, and is currently looking into the possibility of divesting assets in the Trade division.

"Sanoma has built a strong, versatile media portfolio. We are market leaders in our key markets, both in consumer media and learning. Our strong brands and excellent content are loved by readers and viewers in over 20 countries. However, we see many declining trends in our markets and we need to change in order to address these trends and remain the preferred choice of our customer also in the future," says Harri-Pekka Kaukonen, President and CEO of the Sanoma Group. "We are also seeking to increase our organic growth and improve our performance."

During the spring, Sanoma already made a number of changes in its business portfolio. Another key element in the change process is the new organisational model. "Our new organisation will speed up our digital transition, increase customer insight, foster innovation and improve the efficiency of our processes. We are also building strong, international competence centres to ensure the best possible allocation of resources globally," Kaukonen continues.

The new organisation will consist of seven strategic business units: Sanoma News, Sanoma Media Finland (former Sanoma Magazines Finland and Sanoma Entertainment), Sanoma Media Netherlands, Sanoma Media Russia & CEE, Sanoma Media Belgium, Sanoma Learning (former Sanoma Learning & Literature) and Sanoma Trade. Two new corporate functions will be established. These new operations, Digital Operations and Customer Market Operations, work in very close cooperation with the business units and their purpose is to align the Group's efforts in digital operations and improve customer insight and process efficiency within Sanoma. The Chief Digital Officer (CDO) is responsible for the development of an integrated digital offering as well as identifying new opportunities and executing them. The Customer Market Officer (CMO) will develop Sanoma's strategic marketing processes and ensure the development of superior consumer and advertiser understanding. The new organisation will be in force as of 1 September 2011. The name of Sanoma Learning & Literature will change by the end of September.

Executive Management Group

As of 1 September, Sanoma's Executive Management Group (EMG) will comprise:

- Harri-Pekka Kaukonen, President and CEO of the Sanoma Group, chairman of the EMG
- Jacqueline Cuthbert, Chief Human Resources Officer (CHRO)
- Jacques Eijkens, head of Sanoma Learning
- Koos Guis, head of Sanoma Media Russia & CEE (acting)
- Kim Ignatius, Chief Financial Officer (CFO)
- John Martin, Chief Digital Officer (CDO)
- Dick Molman, head of Sanoma Media Netherlands
- Anu Nissinen, head of Sanoma Media Finland
- Pekka Soini, head of Sanoma News
- Aimé Van Hecke, head of Sanoma Media Belgium
- Customer Market Officer (CMO), which will be appointed later.

"I'm very pleased to have this great team in place to work with. The new organisation and the corporate culture that we are starting to build are important building blocks in transforming Sanoma to meet the changes in the consumer media and learning markets, just like our recent acquisitions have been," Kaukonen says.

Eija Ailasmaa, current President & CEO of Sanoma Media, will retire according to her contract by the end of the year. "I would like to extend my warmest thanks to Eija. She has a fantastic career in the Group, and has had a key role in building Sanoma Media since the magazine acquisition in 2001," Kaukonen praises.

Hellevi Kekäläinen will continue as head of Sanoma Trade.

Reporting structure

This organisation change does not affect the operating segments used in Sanoma's financial reporting. The four operating segments will be Media, News, Learning and Trade. Media comprises the following strategic business units: Sanoma Media Netherlands, Sanoma Media Finland, Sanoma Media Russia & CEE and Sanoma Media Belgium. News comprises e.g. the Group's Finnish newspaper and online classified operations. Learning comprises the Group's learning as well as language services operations and Trade is responsible for retail operations. Also Sanoma's Cash generating units (CGUs) will remain as before.


Sanoma.com

Sanoma inspires, informs and connects. As a diversified media group, we bring information, experiences, education and entertainment to millions of people every day. We make sure that quality content and interesting products and services are easily available and meet the demands of our readers, viewers and listeners. We offer a challenging and interesting working environment for nearly 20,000 people in over 20 countries throughout Europe. In 2010, the Group's net sales totalled EUR 2.8 billion.

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