Successful Nation as a Framework for Successful Business Jaakko Rauramo Chairman of SanomaWSOY December 4, 2006

Jaakko Rauramo | | 2 The SanomaWSOY Group Net sales M€ 2,622 EBIT M€ Personnel 16,885 EBIT including major non-recurring capital gains Personnel under employment contract, average Net sales, EBIT and personnel in 2005 * Will start in January 2007 SWelcom Net sales M€ EBIT 9.6 M€ Commercial TV, Cable TV, Broadband, and Radio* Sanoma Net sales M€ EBIT 59.1 M€ Newspaper publishing, Digital media, Printing SanomaWSOY Education and Books Net sales M€ EBIT 55.8 M€ Educational publishing, Publishing Rautakirja Net sales M€ EBIT 51.2 M€ Press distribution, Kiosk operations, Bookstores, Movie theatres Sanoma Magazines Net sales 1,181.9 M€ EBIT M€ Magazine publishing, Digital media, Press distribution

Jaakko Rauramo | | 3 SanomaWSOY in Hungary Sanoma Budapest Kiadói Zrt –The leading magazine publisher in Hungary with nearly 40 titles –Also considerable online businesses, e.g. the leading consumer portal Startlap.hu, nlcafe.hu (women’s portal), profession.hu (job portal), teszvez.hu (internet auction site) –Book publishing, event and conference organization –Some 400 employees Hearst Sanoma Budapest (50%) –Publishes Cosmopolitan and FHM Láng Kiadói, which consists of –Nemzeti Tankönyvjiadó Rt. (NTK), the leading educational publisher –Perfekt Zrt., one of the leading vocational training companies –Some 300 employees

Jaakko Rauramo | | 4 The Framework 1/2 Main Economic Indicators Rule of Law Rule of Moral Age Structure Development Indicators of Age Structure Foreign Population Labour Market Education Levels World Top Universities Research and Developmnet Expenditure Patents R&D Funding in the State Budget Taxation

Jaakko Rauramo | | 5 The Framework 2/2 Public Subsidies of Businesses Public Sector Expenditure and Revenue Number of Towns Structure of the Economy by Sector Energy Balances Largest Companies Venture Capital Investments Foreign Direct investment Criminality and Safety Broadband Subscribers Internet Usage Penetrations Trends Driving the Global Economy

Jaakko Rauramo | | 6 Main Economic Indicators Hungary GDP change (%) GDP, EUR million50,32163,61377,84383,709 GDP/capita, EUR5,0796,4537,9368,577 Inflation (%) General government financial balance, deficit/surplus of GDP (%) Current account, EUR million-3,593-5,593-6,863-6,733 Population, million USD = EUR Sources: Finpro, Worldbank, Statistics Finland

Jaakko Rauramo | | 7 Main Economic Indicators Finland GDP, change (%) GDP, EUR million103,167126,121144,373148,070 GDP/capita, EUR19,81624,16927,66028,325 Inflation (%) General government financial balance, deficit/surplus of GDP (%) Current account, EUR million6,9285,4507,2743,641 Population, million5.2 1 USD = EUR Sources: Worldbank, Statistics Finland

Jaakko Rauramo | | 8 Rule of Law Legal system Security Public trust Speed of justice Business law

Jaakko Rauramo | | 9 Rule of Moral Overall Rank EU and other Western European CountryScoreConfidence range Surveys Used 11Finland9.69.4– Iceland9.69.5– Denmark9.59.4– Sweden9.29.0– Switzerland9.18.9– Norway8.88.4– Netherlands8.78.3–9.07 …. 4121Hungary5.25.0–5.48 Source: Corruption Perceptions Index 2006, Transparency International

Jaakko Rauramo | | 10 Education Levels Number of degrees in 2005 Hungary2005 A levels or similar37,974 Masters19,188 Finland2005 A levels or similar34,058 Masters19,176 Technical2,854 Business School2,159 Other14,163 Sources: Statistics Finland, Hungary: Ministry of Education, statistical yearbook

Jaakko Rauramo | | 11 World Top Universities World Rank InstitutionCountryScore on Alumni Score on Award Score on HiCi Score on N&S Score on SCI Score on Size Total Score 1Harvard UnivUSA Univ CambridgeUK Stanford UnivUSA Univ California - BerkeleyUSA Massachusetts Inst Tech (MIT) USA California Inst TechUSA Columbia UnivUSA Princeton UnivUSA Univ ChicagoUSA Univ OxfordUK **** 74University of HelsinkiFinland University of TurkuFinland Eotvos Lorand UnivHungary Source: Institute of Higher Education, Shanghai Jiao Tong University

Jaakko Rauramo | | 12 Research and Development Expenditure In Hungary MHUF Business enterprises 30,07039,79048,98450,93653,92667,35181,954 Government41,62452,20775,386100,392102,00894,049102,666 Other domestic source 2,1312,1893,3172, , From abroad4,36311,20212,91817,77318,84718,79122,171 Total78,188105,388140,605171,470175,773181,525207,764 Of GDP (%) EUR = HUF Source: Hungarian Central Statistical Office

Jaakko Rauramo | | 13 Research and Development Expenditure In Finland MEUR Business enterprises2,6443,1363,2843,3753,5283,6833,770 Public sector University sector ,0401,080 Total3,8794,4234,6194,8305,0055,2535,388 Of GDP (%) *3.5 1 Estimate on the basis of inquiry responses and other calculations, 2 Incl. private non-profit sector 3 Incl. central university hospitals and polytechnics, * preliminary data Source: Statistics Finland

Jaakko Rauramo | | 14 Public Sector Expenditure and Revenue HUNGARY2005 Expense of GDP42% Revenue, excluding grants of GDP38% FINLAND Expense of GDP37% Revenue, excluding grants of GDP40% Source: The World Bank. Data & Statistics: Public Sector

Jaakko Rauramo | | 15 Venture Capital Investments HUNGARY Investments, MEUR Number of transactions3241 FINLAND Investments, MEUR Number of transactions Source: Hungarian Venture Capital and Private Equity Association, Suomen pääomasijoitusyhidstys

Jaakko Rauramo | | 16 Foreign Direct Investment % of GDP HUNGARY FINLAND Source: Globalis

Jaakko Rauramo | | 17 Penetrations Mobile phones/100 persons Hungary Finland PCs/100 persons Hungary Finland Broadband connections/100 persons Hungary Finland Internet users/1000 persons Hungary Finland Source: Statistics Finland

Jaakko Rauramo | | 18 Trends Driving the Global Economy People power –Blogs, user reviews, photo-sharing – the peer production era has arrived Personalize it –Jeans cut just for your hips, drugs designed just for your genome. The new me decade is a perfect fit. Video unlimited –Any time, any place, any format, any screen – there’s always something on. All-access economy –Closed systems are dead. From software to supply chains, open is the new standard. Carbon Killers –Hug that tree: For some companies, going green is generating serious greenbacks Buy it now –Forget old-school R&D. These companies purchase their ideas one startup at a time. Source: Wired 07/2006

Jaakko Rauramo | | 19 Future is in our own hands.

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