NDC Holding B.V. Nederland Nee www.ndcvbk.nl/

Bijlage 1: Lijst uitgevers

Onderneming Land Beursnotering Website Agora S.A.. Polen Ja www.agora.pl Arnoldo Mondadori Editore Italië Ja www.mondadori.com Daily Mail and General Trust Engeland Ja www.dmgt.co.uk De Persgroep België Nee www.persgroep.be EMAP PLC Engeland Ja www.emap.com Future PLC Engeland Ja www.futurenet.com Gruppo Edirtoriale L’espresso Italië Ja www.cirgroup.it Guardian Media Group PLC Engeland Nee www.gmgplc.co.uk Informa PLC Engeland Ja www.tfinforma.com International Masters Publishers Nederland Nee www.imp.nl

Johnston Press PLC Engeland Ja www.johnstonpress.co.uk Koninklijke Wegener N.V. Nederland Ja www.wegener.nl

NDC Holding B.V. Nederland Nee www.ndcvbk.nl/

PCM Uitgevers B.V. Nederland Nee www.pcmuitgever.nl Pearson PLC Engeland Ja www.pearson.com RCS Quotidiani S.P.A..A. Italië Nee www.rcsmediagroup.it Reed Elsevier Nederland / Engeland Ja www.reedelsevier.com Reuters Group PLC Engeland Ja www.reuters.com Roularta Media Group België Ja www.roularta.be Sanoma Magazines BV Nederland Ja www.sanoma.nl Schibsted ASA Noorwegen Yes www.schibsted.no SDU N.V. Nederland No www.sdu.nl Telegraaf Media Groep N.V. Nederland Yes www.telegraaf.nl Trader Media Group LIMITED Engeland No www.autotrader.co.uk Trinity Mirror PLC Engeland Yes www.trinity-mirror.co.uk

United Business Media PLC Engeland Yes www.unitedbusinessmedia.com VNU NV Nederland Yes www.vnu.nl

VUM Media België No www.vum.be

Wolters Kluwer NV Nederland Yes www.wolters-kluwer.com

WPG Nederland Nee www.wpg.nl

Bijlage 2:

Immateriële activa / balanstotaal tot 2004 (30 ondernemingen)

Ondernemingen 2004 2000 1995

AGORA S.A. 7% 2%

ARNOLDO MONDADORI EDITORE 9% 14% 14%

DAILY MAIL AND GENERAL TRUST P L C 39% 31%

DE PERSGROEP 22%

EMAP PLC 55% 73%

FUTURE PLC 63% 73%

GRUPPO EDITORIALE L'ESPRESSO - SOC 34% 45% 39%

GUARDIAN MEDIA GROUP PLC 63% 0% 0%

INFORMA PLC 72% 57%

INTERNATIONAL MASTERS PUBLISHERS B.V. 4% 0% 0%

JOHNSTON PRESS PLC 79% 72% 19%

WPG UITGEVERS BV 4% 0% 22%

KONINKLIJKE WEGENER NV 60% 57% 0%

NDC HOLDING B.V. 5% 7% 0%

PCM UITGEVERS B.V. 35% 50%

PEARSON PLC 48% 51% 0%

RCS QUOTIDIANI S.P.A..A. 6% 3%

REED ELSEVIER GROUP PLC 65% 56% 49%

REUTERS GROUP PLC 11% 6%

ROULARTA MEDIA GROUP 19% 17%

SANOMA MAGAZINES BV 71% 72%

SCHIBSTED ASA 20% 12% 0%

SDU N.V. (SDU) 56% 22% 0%

TELEGRAAF MEDIA GROEP N.V. 20% 23% 1%

TRADER MEDIA GROUP LIMITED 92%

TRINITY MIRROR PLC 73% 75% 23%

UNITED BUSINESS MEDIA PLC 38% 29% 18%

VNU NV 57% 74% 24%

VUM MEDIA 19% 3% 0%

WOLTERS KLUWER NV 55% 77% 30%

Gemiddeld 42% 35% 13%

Immateriële activa / balanstotaal t/m 2005 (15 ondernemingen)

Ondernemingen 2005 2004 2000 1995

VNU NV 64,49% 56,60% 74,23% 23,65%

WOLTERS KLUWER NV 63,42% 55,03% 76,74% 30,33%

KONINKLIJKE WEGENER NV 68,55% 59,93% 57,41% 0,00%

TELEGRAAF MEDIA GROEP N.V. 21,90% 20,36% 22,87% 1,30%

PEARSON PLC 50,71% 48,28% 51,33% 0,00%

REUTERS GROUP PLC 22,79% 10,90% 6,21%

DAILY MAIL AND GENERAL TRUST P L C 38,13% 39,23% 31,43%

TRINITY MIRROR PLC 71,13% 72,80% 75,22% 23,25%

EMAP PLC 55,38% 57,54% 79,71%

UNITED BUSINESS MEDIA PLC 47,60% 38,05% 29,36% 18,47%

GUARDIAN MEDIA GROUP PLC 63,35% 67,11% 0,94%

JOHNSTON PRESS PLC 80,12% 78,60% 72,47% 18,88%

INFORMA PLC 87,64% 71,82% 56,75%

TRADER MEDIA GROUP LIMITED 90,49% 91,73%

FUTURE PLC 65,67% 63,43% 72,72%

Gemiddeld 59,42% 55,43% 50,53% 14,48%

Bijlage 3: Correlatie immateriële activa

Correlatie immateriële activa in tijd 1995-2004

Onderneming Correlatie

DAILY MAIL AND GENERAL TRUST P L C 0,977458

SDU N.V. (SDU) 0,914806

KONINKLIJKE WEGENER NV 0,914271

INFORMA PLC 0,900738

SCHIBSTED ASA 0,887053

VUM MEDIA 0,846709

TELEGRAAF MEDIA GROEP N.V. 0,832564

PEARSON PLC 0,829845

RCS QUOTIDIANI S.P.A..A. 0,826627

INTERNATIONAL MASTERS PUBLISHERS B.V. 0,798081

REED ELSEVIER GROUP PLC 0,795425

NDC HOLDING B.V. 0,783803

GUARDIAN MEDIA GROUP PLC 0,752218

TRINITY MIRROR PLC 0,750762

VNU NV 0,744665

REUTERS GROUP PLC 0,738091

AGORA S.A. 0,689266

JOHNSTON PRESS PLC 0,680236

UNITED BUSINESS MEDIA PLC 0,390883

SANOMA MAGAZINES BV 0,142594

ROULARTA MEDIA GROUP 0,133704

WOLTERS KLUWER NV 0,120404

EMAP PLC -0,05831

WPG UITGEVERS BV -0,34614

GRUPPO EDITORIALE L'ESPRESSO - SOC -0,4404

ARNOLDO MONDADORI EDITORE -0,82087

PCM UITGEVERS B.V. -0,85557

FUTURE PLC -0,89352

DE PERSGROEP -0,98921

TRADER MEDIA GROUP LIMITED

Correlatie immateriële activa in tijd 1995 - 2005

DAILY MAIL AND GENERAL TRUST P L C 0,973159357

KONINKLIJKE WEGENER NV 0,920771615

INFORMA PLC 0,917734548

TELEGRAAF MEDIA GROEP N.V. 0,843254529

PEARSON PLC 0,807007831

REUTERS GROUP PLC 0,788903629

GUARDIAN MEDIA GROUP PLC 0,752345051

TRINITY MIRROR PLC 0,708805204

VNU NV 0,693713373

JOHNSTON PRESS PLC 0,680554626

UNITED BUSINESS MEDIA PLC 0,470127919

WOLTERS KLUWER NV 0,086793968

EMAP PLC -0,05830127

FUTURE PLC -0,786698567

TRADER MEDIA GROUP LIMITED -1

Bijlage 4: Regressie-analyse

Excel

y = 0,0385x - 76,601 R

= 0,12

0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1

1994 1996 1998 2000 2002 2004 2006

Reeks1

Lineair (Reeks1)

Stata

0 .2 .4 .6 .8 1

0 2 4 6 8 10

Time1

95% CI Fitted values

IFA

Stata

Bijlage 5a: Toelichting jaarrekeningen 2004

Agora

Arnolda Mondadori

Daily Mail and General Trust De Persgroep

EMAP Future

Gruppo Editoriale L’espresso Guardian Media Group Informa

Johnston Press NDC Holding PCM

RCS Qoutidiani Reed Elsevier Reuters

Roularta Media Group Sanoma

Schibsted SDU

Telegraaf Media Groep Trader Classified Media Trader Classified Media Trinity Mirror

United Business Media VNU

VUM Media Wolters Kluwer WPG

Agora (Polish GAAP)

Intangible assets

Goodwill arising on an acquisition represents the excess of the cost of the acquisition over the fair value of the net identifiable assets acquired. Goodwill is stated at cost less accumulated amortisation and impairment losses, if any (see accounting policy x). In respect of associates, the carrying amount of goodwill is included in the carrying amount of the investment in the associate.

Other intangible assets that are acquired by the Group are stated at cost less accumulated amortisation and impairment losses, if any (see accounting policy x).

Estimated useful lives of intangible assets (amortised on a straight-line basis over the estimated useful lives) are as follows:

Acquired magazine titles 5 - 20 years Goodwill 5 - 20 years

Other intangible assets (licences, copyrights, etc.) 3 - 7 years

Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred.

IFRS

3.5.1. New International Financial Reporting Standards

Beginning 1 January 2005, all public companies in the EU are obliged to report in accordance with International Financial Reporting Standards (IFRS). Heretofore, the Agora Group has been preparing its financial statements in accordance with both IFRS and Polish accounting regulations for many years.

Starting from the fi rst quarter of 2005, financial statements of the Agora Group companies will be prepared in accordance with IFRS only. As on 1 January 2005 signifi cant amendments to IFRS concerning goodwill treatment and share-based

payments came into force.

As of the date of introduction of the new standards, goodwill amortization will not be reflected in profit and loss account (annual non-cash expense for goodwill amortization amounts to PLN 13 million). At the same time, the Group will be

obliged to conduct an annual impairment test. With regards to IFRS 2 “Share-based payments”, all shares acquired by employees prior to the end of 2004 do not affect the Group’s P&L. The potential impact of future stock incentive plans is still under review.

Arnoldo Mondadori (Italian GAAP)

Valuation methods

Historical cost has been adopted as a basic principle in most cases, except for the revaluation of fixed assets as referred to in specific legal regulations and for the revaluations made of certain fixed assets on the basis of a sworn expert appraisal in the 1984 financial statements.

The more significant accounting principles and evaluation methods have been applied on a consistent basis over time and are explained below:

Intangible assets. Intangible assets and costs with long-term utilisation are booked to the assets in the financial statements. Goodwill acquired for a money consideration is booked to the cost incurred and is amortised during the period of its economic utilisation, as explained in the details referring to fixed assets.

Imprints and titles are booked to the cost of their purchase or creation, since they are intangible goods and juridically independent.

Imprints are generally amortised over a period of five years. The depreciation period for titles calculated on the basis of their useful life represented by their future capacity to produce profits and to maintain a satisfactory position in the market, as explained in greater detail in the details referring to intangible assets.The economic integrity

of the titles is periodically re-examined in the light of economic performances.

Other long-term charges (cost of maintaining rented buildings and offices, cost of software, etc.) are booked at cost and are amortised at a constant rate, which in the majority of cases is spread over a period of not more than five years while in other cases (cost of purchasing rented property) is spread over the duration of the respective contracts.

Development and advertising costs are not normally booked under intangible assets but are entirely charged to the Income Statement in the year they are incurred. However, the cost of

“launch campaigns” for new products and new company activities are booked under intangible assets when their development and advertising costs will mean that their utility and capacity to generate a corresponding flux of income will be felt in future years.

Intangible assets are booked at acquisition or internal production cost, including accessory charges. Goodwill is booked under assets if it has been bought, at a value up to the cost incurred. The value attributed to titles and series includes part of the difference between the purchase cost of certain investments and their book net equity, and the cost incurred for buying or creating new titles and series.

The value of titles is constantly reviewed in the light of economic prospects. Consolidation differences emerge when the Consolidated Financial Statements are drawn up and the value of investments is eliminated, the first time, with the corresponding portion of the shareholders’

equity of the investment.

Research, development and advertising costs are charged to the Income Statement in the year they are incurred, with the exception of the cost of “launch campaigns” for new products and new company activities, since their utility and capacity to generate a corresponding influx of income will be felt in future years.

Intangible assets are systematically amortised at a constant rate, for the period of their foreseeable future utility.

IFRS

Conversion to International Accounting Principles During 2004 a qualitative analysis and a study into the impact on the Mondadori Group of the introduction of international accounting principles (IFRS) was carried out. In relation to this, apart from the impact deriving from the different methods of dealing with specific items in the balance sheet, such as booking treasury stock held in the portfolio or eliminating some long-term charges that cannot be capitalised with the new principles, the following were defined: Group guidelines in relation to the representation of the Business Units where it operates; the approach to the First Time Application of optional and obligatory exemptions; the impairment test process for non- defined

life intangible assets (titles and series); the quantification and itemising of the value of warehoused goods for assets valued with the Lifo method (raw materials).

During the first few months of 2005, the re-opening data as of 1 January 2004 will be audited and the process of readjusting the Group’s information systems to take account of the new principles will be completed.

Daily Mail and General Trust ^{(UK GAAP)}

Goodwill and Other Intangible Assets

(a) Goodwill arising on consolidation in respect of acquisitions, prior to the adoption of FRS 10 on 28th September, 1998, was written off against reserves in the year of acquisition. On disposal or closure of businesses, goodwill previously written off against reserves is taken through the profit and loss account in arriving at the gain or loss on disposal.

(b) Goodwill arising on consolidation, in respect of acquisitions made since 28th September, 1998, is capitalised and amortised through the profit and loss account over the lower of their useful economic lives and a period of 20 years.

(c) In calculating the goodwill, the total consideration, both actual and deferred, is taken into account. Where the deferred consideration is payable in cash, the liability is discounted to its present value. Where the deferred consideration is contingent and dependant upon future trading performance, an estimate of the present value of the likely consideration payable is made. This contingent deferred consideration is re-assessed annually and corresponding adjustment is made to the goodwill arising

on acquisition. The difference between the present value and the total amount payable at a future date gives rise to a finance charge which is charged to the profit and loss account and credited to the liability over the period in which the consideration

is deferred. The discount used approximates to market rates.

(d) Impairment reviews of goodwill and other intangible assets are carried out at the end of the first financial year after acquisition and where there is any indication of impairment.

Purchased intangible assets relating to newspaper publishing rights,

titles, radio licences and certain other intangible assets are capitalised and amortised through the profit and loss account over the lower of their useful economic lives, if any, and a period of 20 years.

Changes in Presentation of Financial Information

The Group has changed its accounting policy to reclassify the Group’s investment in its own shares within shareholders funds in accordance with UITF Abstract 38. As a consequence, provision is no longer made for the cost of shares formerly purchased to match options, granted under the Company’s 1997 Executive Share Option Scheme, in excess of the option exercise price.

As a result of these changes, the prior year primary statements and shareholders’ funds have been restated to show the Company’s own shares of £27.5 million as a negative reserve, offset by a prior year adjustment to release the provision held and hence to increase revenue reserves by £2.5 million at 28th September, 2003. Group operating profit for the prior year has also been restated, being increased by £0.4 million. The sale of these shares in August resulted in a loss of £3.8 million being taken through shareholders’ funds, of which £2.5 million had been charged against operating profits under the previous policy.

Furthermore, the Group’s policy in respect of revenue recognition has been amended to

reflect the publication in November 2003 of Application Note G to FRS 5 so that the earnings

of exhibitions straddling the year end are recognised over the life of the event, where

appropriate, and advertising revenues from the business to business careers division’s web

sites are spread over the term of contract. The effect of this change is that the prior year Group

balance sheet has been restated so as to increase net assets by £0.2 million. This change is one of timing only and has no impact on the results of the prior year.

Other than these changes of policy, the accounts have been prepared in accordance with the accounting policies adopted last year. The Group continues to comply with the transitional arrangements for the implementation of FRS 17, Retirement

Benefits and, as permitted, to prepare its accounts under SSAP 24 ‘Accounting for Pension Costs’.

De Persgroep (Belgium GAAP)

Immateriële vaste activa

De immateriële vaste activa worden gewaardeerd tegen hun aanschaffingswaarde. Titels worden niet gewaardeerd, tenzij bij aankoop van derden. De kosten van onderzoek en ontwikkeling en de intra-groep aangekochte goodwill worden volledig ten laste van het bedrijfsresultaat genomen. De afschrijving gebeurt volgens de lineaire methode à rato van 10% per jaar. Goodwill kan enkel gehandhaafd worden op de balans indien er een return voorzien is op de onderliggende activiteiten.

EMAP ^{(UK GAAP)}

Intangible fixed assets

Purchased goodwill, publishing rights, titles and exhibitions are capitalised and amortised through the profit and loss account over their estimated useful economic lives, which the Directors view as being a period not exceeding 20 years based on the

nature, age and stability of the industry in which the business operates. The net book amounts of intangible fixed assets are reviewed by the Directors at the end of the first full Financial year after acquisition and on the occurrence of any event or change in circumstances indicating that there may have been a decline in the carrying value.

Acquired publishing rights, titles and exhibitions are valued according to the net present value of expected future cash flows. Acquired goodwill is calculated as the excess of the purchase consideration over the fair values of the separable net assets.

Internally developed goodwill and other intangible fixed assets are not capitalised.

Impairment is measured by comparing the carrying value of the asset with the higher of the net realisable value and the value in use. The value in use is measured with reference to discounted cash flows based on future revenue and the Group’s weighted average cost of capital. Any impairment charges are recognised in the profit and loss account for the period in which they arise, unless they relate to previously revalued assets.

Future ^{(UK GAAP)}

Intangible assets On acquisition of a subsidiary, associated undertaking or business, the

purchase consideration is allocated between the underlying net assets on a fair value basis,

with any excess purchase consideration representing goodwill. The purchase consideration is

stated at fair value. Purchased goodwill is capitalised and

amortised on a straight line basis over the estimated useful life of each acquisition. Internally developed goodwill and other intangible assets are not capitalised.

Gruppo Edirtoriale L’espresso (Italian GAAP)

Niet te kopieren uit jaarrekening, wel een toelichting

Guardian Media Group ^{(UK GAAP)}

Consolidatiebasis

On acquisition of a subsidiary, the subsidiary’s assets and liabilities at the date of acquisition are recorded at their fair values reflecting their condition at that date. Goodwill is capitalised as an intangible asset and written off to the profit and loss account over its estimated useful life, a maximum period of 20 years. Radio licences that are acquired as part of a company acquisition are capitalised as goodwill.

Informa ^{(UK GAAP)}

Intangible Fixed Assets

Publishing goodwill, comprising intellectual property rights on individual titles acquired, is valued at cost less provision for impairment and is written off on a straight line basis over estimated life, which is between 3 and 20 years.

Goodwill arising on the acquisition of subsidiary companies and businesses is calculated as the excess of the purchase consideration over the fair value of the net identifiable assets and liabilities acquired and is then written off on a straight-line basis over the estimated life, which is between 3 and 20 years.

In the opinion of the Directors this is an appropriate basis given the nature of the markets and customer base served. The Board carries out a full impairment review on each acquired subsidiary or business after the first full year following its acquisition or where a change in circumstances warrants a further review.

IFRS

The combined Group will be required to adopt International Financial Reporting Standards (IFRS) in producing its results for 2005 and beyond. The adoption of IFRS will necessitate material changes to both the bases and format of financial reports sent to shareholders. To help shareholders better understand the impact of adopting IFRS, prior to the Annual General Meeting in May 2005 the Board intends to issue a separate report showing the 2004 results prepared under IFRS.

International Masters Publishers ^{(UK GAAP)}

2.5.9 Intangible faed assets

Goodwill Goodwill, including consolidated goodwill, is capitalised as an intangible asset and

amortised on a straight-Iine basis over the estimated'useful economic life. The usefül

econornic life is deemed to be thee years.

Software development

The direct costs of computer software development are capitalised and arnortised on a straightline basis over the shorter of their useful economic life or 3 years. Direct costs include the software license costs and costs related to the internal and extemal development team.

Interest costs on borrowing to finance the sofbvare development are expensed as incurred.

Product Development

Research costs are expensed as incurred. Costs incurred in relation to product development are recognised as an intangible asset to the extent that the expenditure on a product is expected to generate future economic benefits. No development costs have been recognised as an intangible asset due to the uncertainty related to the future economic value.

Johnston Press (UK GAAP)

IFRS en immateriele activa

IAS 38 ‘Intangible assets’ – the publishing titles held by the Group as intangible assets meet the recognition criteria under IAS 38 and will therefore continue to be held as intangible assets. Impairment reviews will continue to be performed on an annual basis as the Group’s current policy of charging no amortisation will also continue under IAS.

NDC Holding (Dutch GAAP)

2.4 Immateriële vaste activa

De immateriële vaste activa worden gewaardeerd op aanschafwaarde, verminderd met de jaarlijkse afschrijvingen, gebaseerd op de geschatte economische levensduur.

3.3 Afschrijving immateriële en materiele vaste activa

De afschrijving op immateriële en materiele vaste activa wordt berekend door middel van vaste percentages van de aanschafwaarde op basis van de verwachte economische levensduur.

Boekwinsten en boekverliezen bij verkoop van materiele vaste activa worden verwerkt onder de afschrijvingen.

PCM (Dutch GAAP)

Immateriële vaste activa

Van derden gekochte uitgavenrechten worden, indien zij een bepaalde minimum-omvang te boven gaan, voor de bij acquisitie toegekende waarde in de balans opgenomen. De toegekende waarde is gerelateerd aan de winstgevendheid van het uitgaverecht en de intern gehanteerde minimumrendementseis voor investerings-projecten, doch kan niet hoger zijn dan de verwervingsprijs.

Uitgavenrechten worden lineair afgeschreven over de verwachte levensduur. De aarde van de

uitgavenrechten wordt jaarlijks getoetst. De uitvoering van deze toets is aan bestendig

toegepaste regels onderworpen. Als daarbij een duurzame verlaging van de winstgevendheid

van een uitgavenrecht wordt vastgesteld, wordt de geactiveerde waarde van dat uitgavenrecht

verlaagd door middel van een afschrijving ten laste van het resultaat.

Bij verwerving van deelnemingen wordt een in de koop begrepen vergoeding voor goodwill geactiveerd en gedurende de levensduur ten laste van het resultaat afgeschreven. Hierbij geldt een maximale afschrijvingstermijn van twintig jaar.De levensduur wordt onder meer ontleend aan de omvang van de betaalde goodwill en de relatie tot de verwachte winst. Jaarlijks wordt nagegaan of de verwachtingen die aan het afschrijvingsstelsel ten grondslag liggen niet zodanig zijn gewijzigd, dat de afschrijvingen moeten worden aangepast. Duurzame waardeverminderingen worden ten laste van het resultaat gebracht zodra deze worden geconstateerd. Bij de bepaling van goodwill wordt rekening gehouden met voorzieningen voor de kosten van herstructurering, rekening houdende met latente belastingen. In verband met de looptijd van de herstructureringsprogramma’s worden de voorzieningen en daarmee de goodwill uiterlijk één jaar na verkrijgingdatum definitief vastgesteld.

Investeringen in ICT projecten en software worden gewaardeerd op aanschafprijs. De afschrijvingen worden berekend volgens de lineaire methode met inachtneming van getax- eerde technische of kortere economische levensduur.

Met ingang van 1 januari 2004 worden externe kosten voor het ontwikkelen van leermethoden, alsmede het rechtstreeks toerekenbare deel van interne kosten geactiveerd als ontwikkelkosten. Tot en met 2003 werden alleen externe kosten geactiveerd onder voorraden.

De jaarlijkse amortisatie is afhankelijk van de verkoopontwikkeling van de betreffende leermethode, waarbij een maximum van 5 jaar wordt aangehouden. Met deze stelselwijziging wordt een betere aansluiting op internationale waarderingsgrondslagen, alsmede een beter inzicht in de kostprijs van leermethoden beoogd. Het effect van deze stelselwijziging op het bedrijfsresultaat 2004 bedraagt € 6,3 miljoen en is opgebouwd uit een lagere kostprijs verkoop boeken van € 5,8 miljoen en lagere personeelskosten van € 0,5 miljoen.

Aangezien voor 2004 geen gebruik werd gemaakt van een urenregistratiesysteem, kan het cumulatieve effect van de aanpassing tot en met 2003 niet worden bepaald. Er heeft derhalve geen aanpassing van vergelijkende cijfers plaatsgevonden.

Voor geactiveerde investeringen in software en ontwikkelkosten wordt een wettelijke reserve aangehouden.

Pearson (UK GAAP)

IFRS

1. Goodwill and other intangibles: Under IFRS 3, goodwill is no longer amortised and, instead, is assessed annually for impairment. Goodwill arising on acquisitions before 1 January 2003 will not be restated; other intangible assets arising from acquisitions after 1 January 2003 will be separately identified and amortised over their estimated useful economic lives, often over shorter periods than goodwill has previously been amortised. As a result of this change, Pearson’s operating profit will be increased by the amount of goodwill amortisation recorded under UK GAAP (amounting to £224m for 2004 and £264m in 2003) but reduced by the amortisation of other purchased intangible assets (estimated to be up to

£10m in each of 2004 and 2003).

2. Share based payments: Under IFRS 2, the imputed fair value at the date of grant of

restricted shares, SAYE schemes and share options issued to employees will be charged to

operating profit over the relevant vesting period. This will result in a reduction in Pearson’s reported operating profit, as the cost will be higher than that currently charged under UK GAAP. The UK GAAP charge is based upon the intrinsic value of the award being the difference between exercise price and grant price.

The impact is estimated to be between £15m and £25m in 2003 and 2004.

RCS Quotidiani (IFRS)

Intangible fixed assets

Intangible fixed assets are recorded at purchase cost and amortized on a straight-line basis over their residual useful life.

Goodwill is capitalized only if acquired against consideration, up to the limit of that expense, and consists of the amounts paid for goodwill in connection with acquisitions or other corporate dealings. It is amortized over a period not exceeding its useful life. The following amortization periods generally apply to intangible fixed assets in relation to their long-term utility:

Notes to the consolidated financial statements at december 31, 2004:

> start-up and expansion costs: five years;

> patents and intellectual property rights: three to five years;

> concessions, licenses and similar rights: three years in the case of software licenses;

Otherwise five years;

> trademarks: three to twenty years;

> goodwill and consolidation differences: five to twenty years.

The 20-year period is used exceptionally for goodwill paid on major groups that have been well-established in the market for many years;

> leasehold improvements: over the duration of the lease or rental contract.

Intangible fixed assets whose year-end value has fallen below cost on a long-term basis are written down to that figure. In accordance with the prudence principle, most research, development and advertising costs are booked to the income statement in the year incurred.

IFRS

In compliance with EU Regulation 1606 issued in July 2002, all companies with shares listed on organized markets within the European Union must prepare their consolidated financial statements in accordance with international accounting standards (IAS) from January 1, 2005.

As recommended by the Committee of European Securities Regulators on December 30, 2003, we shall now review the status of the project planned and started in 2003 for achieving the transition

to IFRS/IAS and complying with the obligation to prepare the consolidated financial statements in 2005 in accordance with the new standards.

The first stage was a diagnostic one, designed to identify the most important differences

between the accounting principles currently used for preparing the consolidated financial

statements and the international accounting standards soon to be adopted. The principal areas of impact were identified at the end of this first stage. Furthermore, where the adoption of the new principles involved discretionary choices, the following information was defined:

– RCS's own accounting policies, codified in a group manual;

– the parameters for application in models for performing valuations and estimates (discounted cash flow), required by the new principles; such parameters, which are applicable to the valuations at January 1, 2004 (date of first application), must be periodically updated or reconfirmed;

– the date from when accounting principles which are allowed to be introduced after January 1,

2004 shall first apply (IAS 39 and IFRS 5).

The group's cash-generating units were also identified, meaning the smallest possible identifiablegroup of like assets for the purposes of balance sheet valuation. We then defined the reporting structure for the purposes of “segment information”. This remained largely the same as the one currently used by the group.

Following this first stage, we then established priorities for making changes to the operating systems and processes of the group's Italian and foreign companies. Once finished, the modifications currently in progress will make it possible to prepare outside of the main accounting system a balance sheet and income statement at the transition date, together with all the notes, along with a restatement of the prior period figures in accordance with IFRS for comparison with those in 2005. RCS will adopt IFRS/IAS for the first time in its half year report, by when it will have engaged its independent auditors to check the figures resulting from the transition. Based on the results of the work performed, the principal effects of using IFRS/IAS for preparing

future consolidated balance sheets and income statements are discussed below.

Intangible fixed assets

The relevant accounting standards are: IAS 38, IAS 36, IFRS 5 and SIC 32.

Consolidation differences and goodwill

At January 1, 2004, 87.1% of the group's intangible fixed assets were represented by Concessions, licenses and similar rights and Consolidation differences, combining to make a significant overall total.

Under the group's current accounting policies, if the cost of an equity investment is higher than the share of net equity acquired at the date of acquisition and first-time consolidation, then this difference is allocated to the assets of the company being consolidated, whose market values are then higher than the historical cost contained in its balance sheet. Any amounts not allocated to the company's assets are recorded as “Consolidation differences”.

The adoption of this policy has involved allocating certain consolidation differences to publishing titles, concessions and licenses as well as trademarks. This method is also accepted under international accounting standards.

The amounts booked under the Italian standards are amortized systematically over the period they are expected to benefit. With the introduction of international accounting standards, unallocated consolidation differences may no longer be amortized since they are treated as intangible assets with an indefinite life. However such differences must undergo regular

"impairment tests". This involves valuing the net present value of the cash-generating unit to

which the asset refers, also taking into account the investment's degree of risk. This method is also applied to the consolidation differences allocated to assets with an indefinite life and goodwill recognized in

company balance sheets.

The overall impact of the first-time application of international accounting standards on consolidated shareholders' equity and the associated performance of “impairment tests” on all the assets mentioned above, is expected to be immaterial. Furthermore, any impairment losses arising on balances at January 1, 2004, the transition date, have also been recorded in the 2004 financial statements prepared in accordance with Italian accounting standards.

Advertising costs

Under the EU regulation referred to earlier, it is no longer allowed to capitalize advertising costs. The RCS group's consolidated financial statements prepared under Italian accounting standards systematically expense advertising costs to income. However, there is one exception in the books division where the release phase for partworks involves vital advertising investment for launching specific series on the market. This investment is currently deferred over the life of the series, which is generally no longer than twelve months. The transition to IAS/IFRS will involve eliminating this deferral, which is currently recorded under current assets.

Start-up and expansion costs The EU regulation does not allow the capitalization of start-up and expansion costs. However, the application of this rule will have a limited impact since the balances in question now represent a small proportion of the group's overall assets.

Reed Elsevier ^{(UK GAAP)}

Goodwill and intangible assets Reed Elsevier’s accounting policy is that, on acquisition of a subsidiary, associate, joint venture or business, the purchase consideration is allocated between the net tangible and intangible assets other than goodwill on a fair value basis, with any excess purchase consideration representing goodwill. The valuation of intangible assets other than goodwill represents the estimated economic value in use, using standard valuation methodologies, including as appropriate, discounted cash flow, relief from royalty and comparable market transactions. Acquired goodwill and intangible assets are capitalised and amortised

systematically over their estimated useful lives up to a maximum of 40 years, subject to annual impairment review. Appropriate amortisation periods are selected based on

assessments of the longevity of the brands and imprints, the market positions of the acquired assets and the technological and competitive risks that they face.

The carrying amounts of goodwill and intangible assets are regularly reviewed, at least twice a year. The carrying amounts of goodwill and intangible assets arising on all significant acquisitions, on all acquisitions made in the previous financial year, and on any acquisitions for which there are indications of possible impairment are compared with estimated values in use based on latest management cash flow projections. Key areas of judgement in estimating the values in use of businesses

are the forecast long term growth rates and the appropriate discount rates to be applied to forecast cash flows. Based on the latest value in use calculations, no goodwill or intangible assets were impaired as at 31 December 2004.

International Financial Reporting Standards

Under a regulation adopted by the European Parliament, the Reed Elsevier combined financial statements and the financial statements of the two parent companies, Reed

Elsevier PLC and Reed Elsevier NV, will be prepared in accordance with International Financial Reporting Standards (IFRS) with effect from the 2005 financial year. The 2004 financial statements have been restated (unaudited) under IFRS, assuming a 1 January 2004 transition date, and are summarised on pages 115 to 139. The restated IFRS financial

information, which will form the results and financial position for the comparative year in the 2005 financial statements, assumes the endorsement of certain standards by the European Commission in 2005.

IFRS: Goodwill and Intangible Assets

IFRS 3 – Business Combinations prohibits the amortisation of acquired goodwill. Goodwill amortisation of £206m/ €304m charged under UK GAAP in 2004 is therefore reversed under IFRS. On the balance sheet, the net book amount of goodwill under IFRS is £262m/ €370m higher as at 31 December 2004 than under UK GAAP. This higher amount reflects the reversal of the UK GAAP amortisation charge for 2004, together with an increase of

£68m/ €96m in the amount of goodwill arising on 2004 acquisitions under IFRS due to the recognition of additional deferred taxation liabilities (see below), less the effects of currency translation on adjustments.

IAS38 – Intangible Assets requires more detailed evaluations to be made of acquired intangible assets and their estimated useful lives than under UK GAAP. Estimated useful lives of acquired intangible assets under IFRS are typically shorter than under UK GAAP, although in certain cases may be considered indefinite. The adoption of IAS38 gives rise to a net increase in the amortisation charge in respect of acquired intangible assets of

£55m/ €81m. Capitalised software costs, previously included within tangible fixed assets, are now included within intangible assets. The net book amount reclassified as at 31 December 2004 is £227m/ €321m. There is no change to the depreciation charges in respect of such assets, although these will now be classified, separately, within intangible asset amortisation.

On the balance sheet, the net book amount of intangible assets under IFRS is £178m/ €251m higher as at

31 December 2004 than under UK GAAP. This is due to the reclassification of capitalised software costs, partly offset by the higher amortisation of acquired intangible assets and the effects of currency translation on adjustments. There is no retrospective restatement of the acquired goodwill and intangible asset values as at the 1 January 2004 transition date.

Reuters (UK GAAP)

Goodwill & Other Intangible Assets

Goodwill and other intangible assets Goodwill is calculated as the difference between the fair value of the consideration paid and the fair value of the Group’s share of the net assets at the date of acquisition. No value is attributed to internally generated

Intangible assets. Purchased goodwill and other intangibles are capitalised and amortised

through the profit and loss account on a straight line basis over their

estimated useful economic lives, which are up to 20 years depending on the nature of the business acquired. Impairment reviews are carried out at the end of the first financial year after acquisition and where there is any indication of impairment.

Impairment is measured by comparing the carrying value of the asset with the higher of the net realisable value and the value in use. Any impairment charges are recognised in the profit and loss account for the period in which they arise.

Accounting Policies

Under UK GAAP, goodwill and other intangible assets are amortised. Under US GAAP, prior to 1 July 2001, goodwill was amortised over its estimated useful life consistent with UK GAAP. In 2002, Reuters adopted the provisions of Financial Accounting Standard No. 142 (FAS 142) ‘Goodwill and Other Intangible Assets’ and as a result goodwill is no longer subject to amortisation under US GAAP. In addition, the non-amortisation of goodwill provisions of FAS 142 were effective immediately for goodwill arising on all acquisitions completed after 30 June 2001.

Under UK GAAP, goodwill impairment reviews are carried out at the end of the first financial year after acquisition and where there is any indication of impairment. Impairment is measured by comparing the carrying value of the business with the higher of the net realisable value and the value in use. Under US GAAP, the Group performed a transitional impairment test effective 1 January 2002, as required by FAS 142. Goodwill impairment reviews are also conducted whenever the Group considers there to be an indication of impairment. Beginning in 2002, the Group also completes an annual goodwill impairment test, as required by FAS 142.

Under US GAAP, where the carrying value of a reporting unit exceeds its fair value then a goodwill impairment is recorded based on the excess of the carrying value of goodwill in a reporting unit over the implied fair value of that goodwill.

Under UK GAAP, the fair value of quoted securities issued to effect a business combination is measured at the market price at the date of closing the acquisition. Under US GAAP, the fair value of the securities issued is determined using the market price for a reasonable period before and after the date that the terms of the acquisition are agreed to and announced.

Under UK GAAP, contingent consideration arising as part of a business combination is included within goodwill and recorded as a liability at the time of the acquisition. Under US GAAP, contingent consideration is recorded as an adjustment to goodwill at the time it is realised. Under UK GAAP, liabilities recorded in respect of contingent consideration are discounted to net present value and included within goodwill at the time of the business combination. Under US GAAP, as the liability is recorded when the contingency is resolved, the value taken to goodwill can be different.

Both UK GAAP and US GAAP require purchase consideration in respect of subsidiaries

acquired to be allocated on the basis of fair values to the various net assets of the acquiree at

the date of acquisition. The excess of purchase consideration over the fair value assigned to

the net assets is treated as goodwill. Both UK GAAP and US GAAP require separately

identifiable intangible assets to be held separately from goodwill. Under US GAAP a different

definition of intangible assets applies, therefore additional intangible assets may be identified

under US GAAP.

Roularta Media Group ^(IFRS)

Immateriele activa andere dan goodwill

Immateriële activa omvatten de van derden verworven of door inbreng verkregen titels, software, grafieken en generieken, scenario’s enz., alsook intern gegenereerde software.

Onderzoeksuitgaven, ondernomen met het oog op het verwerven van nieuwe wetenschappelijke of technische kennis en inzichten, worden als kosten in de jaarrekening genomen op het ogenblik dat ze zich voordoen. Ontwikkelingsuitgaven, waarbij de resultaten van het onderzoek worden toegepast in een plan of een ontwerp voor de productie van nieuwe of aanzienlijk verbeterde producten en processen, worden enkel in de balans opgenomen indien het product of het proces technisch of commercieel uitvoerbaar is, de Groep voldoende middelen ter beschikking heeft ter voltooiing ervan en er kan aangetoond worden dat het actief waarschijnlijk toekomstige economische voordelen zal genereren.

Het geactiveerde bedrag omvat de kosten van materialen, directe loonkosten en een evenredig deel van de overheadkosten. De immateriële activa worden geboekt aan hun kostprijs verminderd met de eventuele geaccumuleerde afschrijvingen en de

eventuele geaccumuleerde bijzondere waardeverminderingsverliezen. Gezien titels een onbeperkte gebruiksduur hebben, worden titels niet afgeschreven en jaarlijks onderworpen aan een test op bijzondere waardevermindering van activa.

Latere uitgaven

Latere uitgaven voor geactiveerde immateriële activa worden enkel in de balans opgenomen wanneer ze de waarschijnlijk toekomstige economische voordelen eigen aan de activapost waaraan ze verwant zijn, vergroten. Alle andere uitgaven worden opgenomen als last op het moment waarop ze worden gedaan.

Afschrijvingen

Immateriële activa worden afgeschreven volgens de lineaire methode vanaf de datum waarop het actief beschikbaar is en dit over de verwachte gebruiksduur.

Volgende gebruiksduren worden toegepast: - Software 5 jaar - Grafieken en generieken 3 jaar

- Scenario’s 2 jaar

Titels worden, conform de ‘improvement’ op IAS 38.107, geclassificeerd als activa met onbepaalde gebruiksduur en worden bijgevolg niet afgeschreven maar elk jaar onderworpen aan een test op bijzondere waardevermindering.

Goodwill

Goodwill is het verschil tussen de kostprijs van de bedrijfscombinatie en het aandeel van de Groep in de reële waarde van de verworven activa, en de overgenomen verplichtingen en voorwaardelijke verplichtingen van de dochteronderneming, joint venture of geassocieerde deelneming op het moment van de overname. Ingevolge de vervroegde toepassing van IFRS 3 wordt goodwill niet afgeschreven maar elk jaar onderworpen aan een test op bijzondere waardevermindering.

IFRS

IFRS wordt voor het eerst toegepast op de geconsolideerde cijfers van het boekjaar dat eindigt op 31 december 2004. De vergelijkende cijfers van het boekjaar 2003 werden herwerkt conform de in 2004 gebruikte waarderingsregels. Dit betekent

dat de datum van de overgang naar de IFRS 1 januari 2003 (IAS/IFRS openingsbalans) is.

De toepassing van IFRS heeft voor RMG vooral een invloed op volgende domeinen:

- waardering van immateriële en materiële vaste activa - waardering van de voorraad filmrechten

- actieve en passieve belastinglatenties

De IFRS 3-norm en de daarmee overeenstemmende aanpassingen van IAS 36 en IAS 38, stelt dat titels en goodwill een onbeperkte levensduur hebben. Bijgevolg worden deze activa niet meer afgeschreven en wordt er een jaarlijkse test uitgevoerd op bijzondere waardevermindering (impairment test).

Sanoma Magazines (Dutch GAAP)

2.4 Intangible fixed assets

Intangible fixed assets include publishing rights, goodwill, film rights and software licenses. Publishing rights are stated at fair value on acquisition and are not

subsequently revalued. Publishing rights are amortised on a straight-line basis over a range of 3 - 20 years, depending on the estimated econornic life.

Goodwill represents the difference between the cost of acquisition of an enterprise and the fair value of identifiable assets less identifiable liabilities acquired, taking into account related tax effects to the extent that these are considered realisable.

Goodwill is capitalised and amortised on a straight-line basis over the estimated useful economic life with a maximum of 20 years.

Film rights are valued at acquisition cost. Film rights are amortized using fixed percentages depending on the acquisition value and the type of media that is used to distribute the film.

Permanent decreases in value as at balance sheet date are taken into account.

Schibsted (Norway GAAP)

Tangible and intangible fixed assets

Tangible and intangible fixed assets are stated at cost less accumulated depreciation,

amortisation and write-downs. Costs related to the development of software are capitalised as

intangible assets when the asset is expected to have sustainable value. Costs include direct and

indirect costs attributable to the development of the asset. The cost of assets constructed by

the Group includes interest cost on expenditures during the construction period. Fixed assets

with limited useful life are depreciated on a straight line basis over the estimated useful life of

the assets. Normal repairs and maintenance are expensed as incurred. Major improvements

are capitalised and depreciated over the remaining useful life of the asset. Environmental

expenditures are expensed as they are incurred, unless the measures increase capacity,

productivity, or the remaining useful life of the related facility. Tangible and intangible fixed

assets are written down if the carrying value exceeds recoverable amount. Recoverable amount is the higher of net sales value and net present value of future cash flows expected to be generated. The writedown is reversed if the basis for the write-down is no longer present.

Other intangible assets include film rights. Film rights with a limited license period and self- produced films are amortised over a three-year period according to a 60-20-20 distribution.

Film rights with an unlimited license period are amortised annualy with an amount reflecting actual revenue in proportion to total expected revenue.

Implementation of International Financial Reporting Standards (IFRS) (Unaudited)

Schibsted will, in accordance with the requirements applicable to listed companies, from 1st quarter 2005 report its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). In order to present comparable figures for 2004, an opening balance sheet as per January 1, 2004 in accordance with IFRS is prepared.

In addition, income statement for 2004 and balance sheet as per December 31, 2004 in accordance with IFRS is prepared. Below is a description of the material differences between the accounting principles applied previously by Schibsted (NGAAP) and IFRS. In addition, reconciliations between financial statements prepared in accordance with NGAAP and restated financial statements in accordance with IFRS are presented. The figures presented may change as a consequence of new information and changes in interpretations of IFRS during 2005.

SDU (Dutch GAAP)

Waardering Immateriële vaste activa

Onder immateriële vaste activa zijn uitgavenrechten, goodwill en ontwikkelings-kosten opgenomen. Aan van derden verworven uitgavenrechten, waaronder begrepen adresbestanden en databanken, wordt een waarde toegekend die is gebaseerd op de contante waarde van toekomstige bedrijfsresultaten na aftrek van belastingen.

Uitgavenrechten worden lineair geamortiseerd in maximaal 20 jaar.

Onder goodwill wordt verstaan het verschil tussen de verwervingsprijs van een deelneming en de actuele waarde van de verkregen identificeerbare activa onder aftrek van de verkregen passiva. Goodwill wordt lineair geamortiseerd gedurende de geschatte economische levensduur met een maximum van 20 jaar.

Ontwikkelingskosten, waarvan wordt verwacht dat deze dienstbaar zullen zijn aan de toekomstige resultaten van de groep, worden geactiveerd. Op deze activa wordt stelselmatig afgeschreven. Conform de vigerende regelgeving wordt ten bedrage van de geactiveerde ontwikkelingskosten een wettelijke reserve gevormd.

Jaarlijks vindt ten aanzien van de uitgavenrechten, goodwill en ontwikkelingskosten een

beoordeling plaats van de boekwaarde op basis van de gerealiseerde en verwachte

toekomstige opbrengsten. Indien en voorzover een duurzame waardedaling is opgetreden

wordt deze ten laste van het resultaat gebracht.

Telegraaf Media Group (Dutch GAAP)

Immateriële vaste activa

Goodwill, zijnde hetgeen bij de acquisitie van deelnemingen, ondernemings-activiteiten en uitgaverechten betaald wordt boven de waarde op het tijdstip van verwerving, wordt in maximaal twintig jaar afgeschreven ten laste van het resultaat. De waarde op het tijdstip van verwerving wordt bepaald op basis van de reële waarde van de overgenomen (onderliggende) activa en passiva.

Overige immateriële vaste activa betreffen licentierechten, (in eigen beheer ontwikkelde) informatiesystemen voor eigen gebruik en tijdelijke uitgaverechten. Nadat de technische en economische toepasbaarheid van ontwikkelde informatie-systemen is vastgesteld worden gemaakte kosten geactiveerd en in drie jaar afgeschreven. Voor het geactiveerde deel dat betrekking heeft op interne uren wordt een wettelijke reserve gevormd.

Trader Classified Media ^{(UK GAAP)}

Goodwill and intangible assets

Intangible assets, substantially all of which resulted from business combinations, include tradenames and advertiser base. Purchase price amounts allocated to these intangibles, and their related amortisation periods, are determined principally by external valuation studies and by the Company. Tradenames and advertiser base are amortised over their estimated useful lives which are ranging from 10 to 20 years for tradenames and from 6 to 12 years for advertiser base.

Trinity Mirror ^{(UK GAAP)}

Intangible fixed assets

Intangible fixed assets comprise goodwill and acquired publishing rights and titles.

On the acquisition of a business, including an interest in an associated undertaking, the cost of the investment is allocated between net tangible assets, goodwill and publishing rights and titles on a fair value basis. The fair value of publishing rights and titles is assessed by the directors at the date of acquisition, based on discounted cash flow valuations.

In the opinion of the directors, publishing rights and titles have an indefinite economic life and are not, therefore, subject to annual amortisation. The carrying values of these assets are reviewed annually and provision made for any impairment in the carrying value if required.

Goodwill in respect of subsidiaries and associated undertakings is

capitalised in the year of acquisition and amortised over the directors’ assessment of its useful economic life up to a maximum of 20 years. The directors regard 20 years as a reasonable maximum for the useful economic life of goodwill, since it is difficult to make projections beyond this period.

Any goodwill arising from acquisitions prior to the implementation of FRS 10 was written-off

to reserves as a matter of accounting policy, remains eliminated in reserves and will be

charged or credited to the profit and loss account on the subsequent disposal of the business to

which it relates.

Notes to the pro forma IFRS financial information

We have audited the accompanying preliminary International Financial Reporting Standards (‘IFRS’) consolidated financial information of Trinity Mirror plc (‘the Company’) and its subsidiaries (together, ‘the Group’) as at 2 January 2005 which comprises the preliminary consolidated income statement, the preliminary consolidated balance sheet, the preliminary consolidated cash flow statement and related notes (hereinafter referred to as ‘the Preliminary Comparative IFRS Financial Information’).

Goodwill – IAS 38, Intangible Assets

Under IAS 38 goodwill is not amortised. Instead it is subject to an annual impairment review.

An adjustment has been made to remove the goodwill amortisation charge.

United Business Media (IFRS)

Intangible assets

Goodwill and intangible fixed assets

Purchased goodwill is capitalised as an intangible asset and amortised on a straight-line basis over its estimated useful life, which the directors view as being a period generally between six and twenty years based on the nature, age and stability of the industry in which the business operates.

Where a business is sold, or where goodwill is considered to have been impaired, the net book value of goodwill or the amount of impaired goodwill, as applicable, is charged through the profit and loss account as part of the profit or loss on disposal or through operating profit in the year of impairment.

Impairment reviews are carried out at the end of the first full financial year after acquisition and on the occurrence of any event or change in circumstances indicating that there may have been a decline in the carrying value or change in useful life.

Other intangible assets are stated at cost and comprise certain product rights including licences and related costs, which are amortised over the shorter of their useful lives or the licence period; publishing rights and titles and purchased internet domain names and websites, which are amortised on a straight line basis over their estimated useful lives, not exceeding two years.

Software costs are written off as incurred, except for purchases from third parties in respect of major systems. In such cases, the costs are written off over the expected useful life of the asset, not exceeding five years from the date of implementation of the software.

IFRS

In accordance with European Union regulations, United is required to prepare its financial

statements for the year ending 31 December 2005 in accordance with International Financial

Reporting Standards (“IFRS”). The group is also required to present comparative information

for the year ended 31 December 2004 in accordance with IFRS.

To assist shareholders in understanding this change in the basis of preparation of the group’s financial statements, the tables below set out reconciliations from UK GAAP to IFRS for profit attributable to members for the year ended 31 December 2004, together with a reconciliation of shareholders’ funds from UK GAAP to IFRS as at 1 January 2004 and as at 31 December 2004. These reconciliations set out all significant differences which are expected to result from the conversion from UK GAAP to IFRS.

The reconciliations are unaudited: they do not form part of the audited financial statements for the year ended 31 December 2004 and are included for guidance purposes only. It should be noted that the actual IFRS profit and shareholders’ equity which will be presented as part of the comparative information to be shown in the financial statements for the year ending 31 December 2005 may differ from the amounts shown below as a result of further implementation guidance or industry interpretations. It should also be noted that the format of the published financial statements will change as a result of the adoption of IFRS.

The IFRS restatement may also be amended as a result of future rulings by the US securities and Exchange Commission, who may require foreign registrants to file two years of comparative information under IFRS in the 20-F filing for the year ending 31 December 2005.

This would require the group to adopt IFRS with effect from 1 January 2003; the information presented below is based on a transition date of 1 January 2004.

United is taking advantage of the exemption not to apply IFRS 32 and IFRS 39 until 1 January 2005, and as such no adjustments relating to these Standards have been included.

VNU (Dutch GAAP)

Immateriële vaste activa

Immateriële vaste activa De cijfers over 2004 zijn opgesteld overeenkomstig de grondslagen voor de waardering van de immateriële vaste activa en voor de bepaling van de amortisatie- en impairment lasten zoals toegepast in de jaarrekeningen over de

laatste vier jaren. Met ingang van 2001 moet, volgens de Nederlandse Richtlijnen voor de Jaarverslaggeving, op alle immateriële vaste activa worden afgeschreven. Ter vergelijking, in de Verenigde Staten geldt een richtlijn op basis waarvan goodwill amortisatie met ingang van juli 2002 niet langer is toegestaan tenzij dit verband houdt met de jaarlijkse impairment tests.

Van derden gekochte immateriële vaste activa met een eindige levensduur worden echter lineair over de geschatte economische levensduur afgeschreven.

In 2004 heeft de International Accounting Standards Board (IASB) haar Business Combinations project afgerond met de publicatie van IFRS3, van de wijzigingen in IAS38 Intangible Fixed Assets en van wijzigingen in IAS36 Impairment of Assets. Deze standaarden verbieden eveneens goodwill amortisatie tenzij dit verband houdt met de jaarlijkse impairment tests. Gezien deze ontwikkelingen heeft VNU besloten haar waarderingsgrondslagen in 2004 niet te wijzigen omdat wij van mening zijn dat opeenvolgende wijzigingen in de waarderingsgrondslagen voor immateriële vaste activa het inzicht in de jaarrekening niet ten goede komen.

Uitgavenrechten

Van derden gekochte uitgavenrechten worden, indien zij een bepaalde minimumomvang te

boven gaan, voor de bij de acquisitie toegekende waarde in de balans opgenomen. De toe te

kennen waarde is gerelateerd aan de winstgevendheid van het uitgavenrecht, doch kan niet

hoger zijn dan de verwervingsprijs. Als uitgavenrechten niet slijten door het gebruik of het

verloop van de tijd worden zij niet stelselmatig afgeschreven. In geval wel verwacht moet

worden dat de waarde van een uitgavenrecht zal dalen naarmate de tijd voortschrijdt, vindt lineaire afschrijving plaats over de verwachte economische levensduur. Tenminste twee maal per jaar vindt, in samenhang met de beoordeling van de boekwaarde van goodwill, een toetsing plaats van de waarde van uitgavenrechten. De uitvoering van deze toets is aan bestendig toegepaste regels onderworpen. Als daarbij een bijzondere vermindering van de winstgevendheid van een uitgavenrecht wordt vastgesteld, waardoor de

realiseerbare waarde lager blijkt te zijn dan de geactiveerde waarde, wordt door een additionele afschrijving ten Balans Winst- en verliesrekening laste van het resultaat de geactiveerde waarde van dat uitgavenrecht verlaagd tot de realiseerbare waarde. In het

VNU-aandeel in de nettovermogenswaarde van deelnemingen kunnen geactiveerde uitgavenrechten begrepen zijn.

Goodwill

Onder goodwill wordt verstaan het verschil tussen de verwervingsprijs van een onderneming en de reële waarde van de verkregen identificeerbare activa en passiva op het moment van acquisitie. Tot de betreffende activa behoren tevens nog niet eerder bij de onderneming geactiveerde uitgavenrechten. Onder de passiva zijn

noodzakelijk geachte voorzieningen voor reorganisaties begrepen. Goodwill wordt geactiveerd en lineair afgeschreven over de geschatte economische levensduur van de verworven activiteiten tot ten hoogste 40 jaar. Een maximaal geschatte economische levensduur van 20 jaar is het weerlegbare vermoeden onder Nederlandse grondslagen. Gelet op de duurzaamheid van de goodwill van de acquisities van World Directories in 1998, van Nielsen Media Research in 1999, van Miller Freeman USA in 2000 en van ACNielsen in 2001 is ten aanzien van deze activa dat vermoeden weerlegd en is de geschatte economische levensduur bepaald op maximaal 30 jaar. De duurzaamheid van deze activa blijkt uit de omstandigheid dat de betreffende merken al lange tijd bestaan, uit hun goede naam, alsmede uit hun kenmerkende stabiele marktpositie. Periodiek vindt, in samenhang met de toetsing van de waarde van uitgavenrechten, een beoordeling plaats van de boekwaarde op basis van de gerealiseerde en verwachte toekomstige opbrengsten. De waarde van goodwillposten, die worden afgeschreven in

een periode langer dan 20 jaar, wordt tenminste tweemaal per jaar getoetst. De uitvoering van deze toets is aan bestendig toegepaste regels onderworpen. Indien en voorzover de toets aangeeft dat de realiseerbare waarde lager is dan de geactiveerde waarde, wordt een additionele afschrijving ten laste van het resultaat gebracht.

IFRS

Een van de wijzigingen in rapportagegrondslagen betreft de behandeling van immateriële vaste activa. Bij de samenstelling van de jaarrekening over 2004 zijn dezelfde grondslagen gebruikt voor de waardering van immateriële vaste activa en voor de vaststelling van amortisatie- en impairment lasten als de afgelopen vier jaar. Vanaf 2001 moet volgens de Nederlandse Richtlijnen voor de Jaarverslaggeving amortisatie worden toegepast op alle immateriële vaste activa.

Anderzijds staan de huidige Amerikaanse standaarden geen goodwill amortisatie meer toe, tenzij deze is gerelateerd aan de jaarlijkse impairment tests. In 2004 heeft de International Accounting Standards Board (IASB) het in 2001 begonnen Business

Combination project (IFRS 3) voltooid, alsmede haar revisie van IAS38 (immateriële vaste

activa) en IAS36 (impairment van activa). Net als de standaarden in de V.S. staan deze

nieuwe IASB standaarden geen amortisatie van goodwill meer toe, tenzij deze verslag van de

Raad van Bestuur samenhangt met de jaarlijkse impairment tests. De Nederlandse wetgeving

stond niet toe dat VNU deze nieuwe IASB standaarden al in 2004 toepaste. Tegelijkertijd