Metro internationaL S.a.
annuaL report 2009
Table of contents
This is Metro...2
Introduction ...2
Innovative global campaigns...4
Metro special products ...6
Financial summary ...8
CEO statement ...10
CFO statement ...14
Corporate governance...17
The Company ...17
Annual General Meeting ...17
The 2009 Annual General Meeting...17
Nomination Committee ...17
Board of Directors...17
The Board’s responsibility and work during 2009...19
Remuneration Committee ...19
Audit Committee ...19
Remuneration of the Board ...19
Evaluation of the Board ...19
The Executive Management team ...20
External auditors ...22
Internal control ...22
Control environment ...22
Risk assessment ...22
Control activities ...22
Information and communication ...22
Monitoring ...22
Directors’ report ...23
Management responsibility statement ...24
Independent auditors’ report ...25
Financial statements ...26
Consolidated statement of comprehensive income...26
Consolidated statement of financial position ...27
Consolidated statement of changes in equity...28
Consolidated statement of cash flows...29
Notes ...30
Metro International S.A. shareholders ...53
Contact details...53
FREE DAILY NEWSPAPERS
209 free daily newspaper
titles are published in 56 countries across the world
35 million copies of free
daily newspapers are distributed every day across the world
94 % increase in free daily
newspaper circulation over the last 5 years (2004–2009)
6.1 % of total worldwide
daily newspaper circulation is free
1 in 5 daily newspaper
copy is free in Europe
22 % of free daily
newspaper circulation in the world is provided by Metro International
30 % of free daily newspaper
circulation in the world is provided by Metro In- ternational (and com- mercial partners)
Source:MetrointernationaL(2009)baSedonnewSpaperinnovationS.coM/wan
WORLDWIDE
100 125 150 175 200 225
20,000 25,000 30,000 35,000 40,000 45,000
eroftitles/countries
culationin000scopies
Free Daily Newspapers (1995-2009)
0 25 50 75
0 5,000 10,000 15,000
1995 2000 2005 2009
Numbe
DailyCirc
Number of Titles Number of countries Circulation 000s
2 introduction annuaL report 2009
annuaL report 2009 introduction 3
EUROPE
METRO IS PUBLISHED IN 119 MAJOR CITIES*
- 42 OF WHICH HAVE MORE THAN 1 MILLION INHABITANTS:
SEOUL, MEXICO CITY, NEW YORK, SAO PAULO, MOSCOW, PARIS, HONG KONG, PHILADELPHIA, SANTIAGO, TORONTO, BOSTON, ST PETERSBURG, MONTERREY, MONTREAL, ATHENS, BUSAN, MILAN, ROME, DAEGU, LISBON, VANCOUVER, BUDAPEST, GUAYAQUIL, STOCKHOLM, AMSTERDAM, TURIN, GWANGJU, MARSEILLE, DAEJEON, ROTTERDAM, QUITO, LYON, THE HAGUE, COPENHAGEN, LILLE, PRAGUE, PORTO, CALGARY,
OTTAWA, EDMONTON, HELSINKI, VALPARAISO...
*over 100,000 inhabitants
Countries 19 Editions 57 Circulation 7,643,000 Cities 119 Languages 15 Readership 16,705,000
Countries 11
Editions 36
Cities 81
Languages 11
Circulation 4,580,000 Readership 11,482,000
Countries 6
Editions 18
Cities 32
Languages 4
Circulation 2,030,000 Readership 3,795,000
Countries 2
Editions 3
Cities 6
Languages 2
Circulation 1,033,000 Readership 1,428,000
AMERICAS ASIA
Source:MetrointernationaL(2009),nrSS(2008-09),abcS/pubLiSherS’StateMentS(2008-09),aSof15/04/2010
CITIES
6.8 3.1
2.6 1.9 1.4 1.2 0.6 Metro*
NYT weekly Time The Economist FT Newsweek BusinessWeek
A
0.5 0.5 0.3 0.3 0.2
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
Fortune Forbes IHT WSJ Europe USA Today
Source: Synovate EMS Summer 2009. * including 24timer and commercial partners
MOST READ AMONG AFFLUENT READERS IN EUROPE
Average Issue Readership in %
4 innovative global campaigns annuaL report 2009
Client
Timberland
The campaign
Timberland wanted to raise their green credentials by associating themselves with the Copenhagen Climate Conference. The Green Metro Special devoted to the environment proved to be the perfect platform to achieve this.
Timberland also sponsored Metro’s countdown to Copenhagen and tacti- cally advertised around Copenhagen editorial during the two weeks of the conference across seven markets. The next green edition is out 22 April to coincide with Earth Day’s 40th Anniversary.
Metro International continues to deliver innovative multi-market advertising campaigns.
Here are a few examples of our recent case studies.
Client
Korean Air
The campaign
Korean Air chose Metro International to help celebrate their 40th
anniversary. A bespoke airline ticket
sleeve was created by the Metro
creative team. The Metro newspaper
was hand distributed in Paris and
Milan within business areas likely to
reach Korean Air’s target audience of
business readers. This unique
solution proved to be a success for
the airline in which 32% of readers
said as a result they were likely to
travel to Asia with Korean Air and
nearly 50% said they were going to
check the website.
annuaL report 2009 innovative global campaigns 5
Client
ES Madrid
The campaign
Metro International produced a cross-platform campaign to entice urbanites to Madrid. We created microsites, street promotions, themed editorial spreads (art, culture, food, fashion) and competitions for the Madrid tourism board. Our objective was to promote Madrid as the destina- tion of choice for international travellers. The marketing program was stylish, beautifully designed and ran across the world. Research results were fantastic - intention to travel to Madrid increased dramatically in all the cities where we ran our promotions.
Client
20th Century Fox: Avatar
The campaign
Metro International and 20th Century Fox International re- teamed for the global launch of AVATAR, arguably the biggest movie release in history. Metro International’s highly impactful campaign was a combination of front page sky box & banner activity, outside back covers in the newspaper along with the distri- bution of a 12 page special AVATAR glossy booklet. The eight country campaign within Europe, South America and Asia, helped Avatar make over $2bn at the global box office, the only movie ever to do so.
In Freixa's point of view, the bare minimum is never acceptable:
why serve a single appetizer when one can choose from a plate of "snacks" including foie gras and a bite size cone piped with creamed chorizo? Why serve a simple tomato salad when preparing a tomato ten different ways offers up so much variety? And who needs liquid broth when Freixa can create one that tastes incredible and gelati- nizes instantly when poured over fish?
After the meal, you are led out to a vibrant green lawn where lush patio furniture waits to cradle your newly fattened self. As you recline – and waiters serve you five different post- dessert chocolates – surely Freixa has you convinced that more is, in fact, more.
Mercado de San Miguel (Plaza San Miguel, Madrid ph: 34-91-542-4939) Intoxicating to all five senses, Mercado de San Miguel is a fully restored marketplace, re-made in its own image.
Sitting just across from majestic Plaza Mayor – and with 33 vendors selling food, spirits and
related odds and ends – it's forgivable to get lost in the market's atmos- phere. Beautiful iron pillars point upwards to a bright red brick ceiling. Glistening, smooth white marble bars are perfect counter- points to dark, rich and detailed carved wood. A bustling crowd elbows for room at the cerve- cería, just feet away from a stall featuring a tableau of whole iced fish, waiting to be sliced up for the right price.
Once lost, Mercado de San Miguel's aromas will snap you back to your senses. With whiffs of cured meats, sea- food, wine, beer, coffee and pastries fighting for your attention, you'll likely give in. Here you can buy fish or veg- etables from one stall and have the next one cook it up just the way you like it.
The market is open late (10am- 10pm Sunday through Wednes- day, 10am-2am Thursday through Satur- day), and is perhaps one of the few places to find French champagne, oysters and chocolate all in the same place after midnight in Madrid.
El Plató (Paseo Castellana 36, Madrid ph: 34-914- 354-618) In Spanish, "plato" means plate.
But if you use a handy accent mark to turn it into "plató," then it takes on the meaning of a tele- vision set.
And thus, the motif for El Plató, chef Pedro Larumbe's new gastropub, which happens to share a glass wall with "El Gato al Agua," a televised politi- cal news roundtable. As diners enjoy Larumbe's creations – in- ventive dishes that make even the most gourmet dishes acces- sible, and the most pedestrian ones divine – they need only look to the back wall for entertain- ment: talking heads arguing about politics.
The effect is like observing animals in the zoo: you've seen these creatures before, perhaps on television. But from a new perspective, up close and caged, news pundits are entirely differ- ent animals.
The main attraction, of course, is Larumbe's food. Ravioli stuffed with duck and served with potato offers a savory delight, while you may be asking for seconds of the chef's inventive take on huevos asados con patatas y chistorra.
(Think steak and eggs served as a cocktail.)
La Latina (the area around Calle Segovia, Calle Toledo, Plaza de la Cebada and Calle del Humilladero) Though tapas have been growing in popularity here in the States, Madrid has been doing it right for a long time, particularly in La Latina.
Small plates are the best way to try a range of delicious Madrid specialties, like the meatballs or tripe served at Casa Alberto (Huertas 18), and the ox tail at Taberna de Antonio Sánchez (Mesón de Paredes 13), a bar that has maintained close connections to the bullfighting world since opening in the late 19th century.
When night hits, take a culinary stroll around La Latina, making sure to hit Casa Lucio (Cava Baja 35) for some of their famous fried eggs and La Camarilla (Cava Baja 21) for their cod and pepper snacks with stewed onions. When you’re through with the fish and craving some beef again, head over to Taberna El Almendro (Almendro 13) and grab a blood pudding roll. Made from black sausage, they taste as delicious as they sound gruesome.
Restaurante Botín (Calle de los Cuchilleros 17, Madrid ph: 34-913-664-217)
In a city as rich with history as Madrid, it's only appropriate to eat historically as well. That's where Restaurante Botín, the world's oldest restaurant, comes in.
In continual operation since 1725, Botin offers food and atmosphere that makes you feel lost in time.
Though its label as "oldest restaurant in the world" makes it a tourist destination by default, don't let that
deter you from visiting. Local Madrileños still flock to this restaurant in droves to sample the tested-by-time cuisine.
Their speciality is pork, offering tapas of jamón and an entree of suckling pig so juicy and tender, you barely need a knife. You can't go wrong with the roast lamb either, but even the food has a hard time compet- ing with the atmosphere.
Botín offers four floors of dining space – including a basement and wine cellar that may date back to the sixteenth century – each offering the spice of history.
If you feel at home in Botín, you're in good company. Ernest Hemingway was a regular at the restaurant, labeling it one of his favorite eateries in the world, and it is said that Francisco de Goya worked there before becoming a painter.
Ramón Freixa Madrid (Hotel Selenza, Calle Claudio Coello 67, Madrid ph: 34-917- 818-262) Master chef Ramón Freixa does not want to feed you. He wants to give you an experience. In leaving Barcelona to open his new restaurant – conveniently titled Ramón Freixa Madrid – he has succeeded wildly.
Freixa's small, intimate room seats only a handful of tables.
Much like his food, Freixa's decor is served up with a twist: think French Provincial-meets-CB2 chic.
The room is quiet and well-lit, all the better to focus on your meal.
And what a meal it is. Freixa experiments with each dish, offering up unexpected and playful concoctions that defy expectations at every bite.
PROMOTION
FOOD&DRINK
GUIDE
Simply go towww.metro.us/contests and answer one question.
Good luck and see you in Madrid.
In association with
Of course, it would be impossible to make a trip to Madrid without experiencing traditional tapas. Small plates of delectabletreats served with a drink, tapas are an integral part of life in Madrid.
The tradition goes back to the Middle Ages, when taverns would serve wine in small jugs with slices of bread over the top topre- vent spillage, giving tapas (meaning "covers") its name.Today, tapas go way beyond just bread. Bars and restaurants go all out, offering up anything from fish, meat, cheeseor any combination thereof.
It's not just the tapas that have historical roots, though.
Madrid's gastronomical history goes far back to 1561,when Felipe II established the city as the capital of the SpanishKing- dom. From there, Madrileño cuisine split onto two distinctbut parallel tracks: common and aristocratic. Though the twostyles often borrowed from one another, they remained different through and through.
Today, however, it is easy to enjoy the best of both worlds wherever you go in Madrid. Traditional soups like gazpachoand garlic soup are served just about anywhere you go, andgiven the quality of Madrid's water are probably the best you'llever have. If you think you've had paella – a traditionalrice-based dish that comes in many varieties – then you haven'thad it in Madrid. Seafood also plays a large part in Madrileñocuisine, particularly shrimp and sea bass. Despite its centralSpain location, Madrid is the second biggest fish market in theworld after Tokyo and has some of the best fish in the country, with daily shipments making their way to the city.Of course, not every bite is historical in Madrid. The cityis home to a growing number of creative chefs who takechances on their dishes, the same way Picasso took a chance on Guernica. In these restaurants, you are ordering a workof art, an experience, a meal that requires five senses firing on all cylinders so that you can appreciate them fully. You cannot order a meal of oysters with green apples and champagne at just any food joint outside. It takes a well-trained artisan with a refined palette to realize that artichokes with potatoes and orange is a brilliant combi- nation. And Madrid is teeming with them.
And that's just the beginning of what's on the menu in Madrid. Now you know that when you're here, you won't go hungry.
PROMOTION
FashionFood&Drink Art Nightlife PART TWOOF A FOUR PART SERIES
MADRID will feed your hunger
2
This is a city that takes its food seriously. From hearty traditional cuisine to experimental dishes that delightin bending the rules, you can find a culinary style to suit whatever your desire while in Madrid.
With over 3,000 restaurants, Madrid can be considered a city where one can taste all the different cuisines in the world, as well as Spanish dishes.
DAILY FLIGHTSNEW YORK MADRIDFROM $ 605.98*
*ALL TAXES INCLUDED AIR EUROPA
Spanish Style, Latin Flair, Personal Touch
For more information, call our reservations department at 1-800-238-7672
4
AIR EUROPA AND MADRID ARE INVITING THREE LUCKY METRO READERS – AND A FRIEND EACH – TO FLY TO MADRID
WIN FLIGHTS TO MADRID
1
Paolo Giocoso © E.M. Promoción de Madrid S.A. 2009
WHETHER YOU'RE LOOKING FOR GOURMET OR TRADITIONAL, MADRID WILL FILL YOU UP
Adrian Dominguez © E.M.
Promoción de Madrid S.A. 2009
For more information about Madrid as a destination and how to get there, visit:
www.esmadrid.com www.turismomadrid.es www.spain.info www.aireuropa.com
3
Paolo Giocoso © E.M. Promoción de Madrid S.A. 2009 Paolo Giocoso © E.M. Promoción de Madrid S.A. 2009
Paolo Giocoso © E.M. Promoción de Madrid S.A. 2009
5
© Ramón Freixa Madrid 2009
© El Plató 2009
© Casa Botín 2009
Gregorio Reche © E.M.
Promoción de Madrid S.A. 2009
Metro International continues to deliver innovative multi-market advertising campaigns.
Here are a few examples of our recent case studies.
© Vicente Ferrater 2009
Carmen March (Calle Puigcerdá 2, Madrid ph:
34-914-312-735) If David Delfin looks back at pop culture with the eye of a Dadaist, then Carmen March is a pure nostalgist.
Taking inspiration from clas- sic Hollywood stars and the leisurely lives they lived, March's designs would not feel out of place at a coun- try club in the Hamptons.
And yet the pieces are accessible, all the class without the stuffiness. Per- haps that is owing partly to the store's atmosphere, designed and laid out like a 3-story walk-in closet.
Antique and custom-made furniture intermingle, and shoppers are encouraged to explore. Opening this closet door reveals a grey and white checkered dress begging to be accessorized.
A display case holds jewelry designed specifically to complement March's clothing.
The third floor is the store's cosmetic room, where you can find several French and Australian brands exclusively in the store. That means in all of Spain, only Carmen March has it.As fate would have it, March's store itself is also a little exclu- sive. Most items are unique, limited runs that can not be found anywhere else, and asa result can be a bit pricey. But hey, you're only in Madrid once:
if you're going to splurge, splurge in style.
Las Salesas(The area surrounded by Conde de Xiquena, Argensola, Almirante, Bárbara de Braganza, Fernando VI and Piamonte) When Jesús del Pozo opened up a little men's boutique backin the '70's, he had no idea what kind of cultural shift he had begun in the Las Salesas district.
What was then a small, unas- suming neighborhood has since transformed into the shopping mecca it is today. Big name cou- ture like Marc Jacobs (Marqués de la Ensenada 2, Madrid) and jewlery designers Luxenter (Plaza de las Salesas 8, Madrid) call Las Salesas home, as do smaller shops and labels. Zadig
& Voltaire (Calle Almirante 27, Madrid) offers wearable high-end fashion to a hipper set, whileCristina Castaner (Calle Almi- rante 8, Madrid) will satiate any shoe lover's appetite. Mercado Fuencarral(Calle de Fuencarral 35, Madrid
ph: 34-91-521-4152) In what used to be a
deteriorating locale of Madrid's downtown sat a downscale market where vendors sold produce and meat.
About ten years ago, food was swapped for couture and Mercado Fuencarral was born.
The three-level fash- ion market helped spur development in the area, and now sits amid an out- door shopping pavilion packed with Madrileños where cars once zipped by. Inside, vendors
specialize in alternative chic clothing and shoes. Though big name brands and designers have crept their way into the market,it remains a place where you can buy unique designs from inde- pendent artists.
Bonus: Mercado Fuencarral is a good place to snag some flyers and learn where all the cool kids in Madrid are hanging out.
PROMOTION
FASHION
GUIDESimply go towww.metro.us/contests and answer one question.
Good luck and see you in Madrid.
In association with
4 Eyes is an enthusiastic projectdriven by four experienced Spanish fashiondesigners – Ana Locking, Juanjo Oliva, CarmenMarch and Juan Duyos – who have come to theNew York Fashion Week, sponsored by the Cityof Madrid, to present their Spring/Summer 2010 collectionsin a unique way. Yesterday, the NY PublicLibrary hosted their innovative virtual catwalk: agiant screen where the four collections could be seensimultaneously.
davidelfin(Calle Jorge Juan 31 Madrid ph: 34-913-100-622)
Sometimes arts bleed into one another. Music, painting, design, theater, they can all come together to create a perfect storm of creative energy.
Enter David Delfin. The designer, painter, actor and avid Pez collector says fashion is a world where all of his interests collide, and his line of davidelfin clothes is the product of that convergence.
One of Spain's most exciting fashion designers, Delfin calls Madrid his home even as he made his way to New York to debut a new line at Fashion Week, sponsored by the City of Madrid.
Taking inspiration from a wide range of sources – including David Bowie, comic book super- heroes, and Disney's "The Jungle Book" – Delfin's latest collection stands in contrast to his past work.
His clothes are brighter and more playful than before, full of lush greens that don't scream dark romanticism so much as,
"Tennis anyone?" (Albeit, a wicked strange game of tennis.) Watching models pose with the collection, there is a feeling of
surrealism bordering on Dada.
Has something changed in the designer?
"My past four or five collec- tions were dark," Delfin said dur- ing a recent visit to his shop. "This time I needed exercise, something totally different. But at the same time, I'm going back to a lot of things I've done before."
Luckily for Delfin, different is not bad. Anything he touches turns gold.
Triball(The area surrounded by calle Ballesta, Valverde, Desengaño, Corredera Baja de San Pablo, Barco and Plaza ‘de los Luna’)
When new fashions respect what comes before them, magical things can happen.
Something familiar appears new again, tradition blends with experimentation, and a new perspective sheds light on what was thought of as the past.
In Triball – an up-and- coming neighborhood named for the triangle of streets created around Calle de la Ballesta – just such magic is
happening. Shops that have been mainstays in the area for decades are seeing stylish neigh- bors popping up left and right.
New fashion boutiques and gour- met restaurants intermingle with old music shops and poultry stores. The blend is a potent one.Dolores Promesas (Desengaño 22, Madrid), a designer who has dressed Spanish celebrities to the hilts, calls Triball home for her shop.
Corochan y Delgado (Barco 42, Madrid) offers vintage de- signs from the 1920's up until the '80's. And Carlos Díez (Loreto y Chicote 9, Madrid) is one of Spain's most audacious new designers, whose store was formerly a butcher's shop.
PROMOTION
FashionFood&Drink Art Nightlife PART ONEOF A FOUR PART SERIES
Fashion is serious business in MADRID
1
2 3
MADRID IS A CITY OF END
LESS STYLE, BUT HERE'SFIVE PLACES TO GET YOUSTARTED New York and Paris may be
the world's twin fashion cap- itals, but Madrid has more than enough couture to keep any style seeker satisfied.
Whether you're looking for wearable avant garde art or traditional upscale designs, Madrid has you taken care of.
Carlos Díez
4 EYES
DAILY FLIGHTSNEW YORK MADRIDFROM $ 605.98*
*ALL TAXES INCLUDED AIR EUROPA
Spanish Style, Latin Flair, Personal Touch
For more information, call our reservations departmentat 1-800-238-7672
4
5
For more information about Madrid as a destination and how to get there, visit www.esmadrid.com www.turismomadrid.es www.spain.info and www.aireuropa.com Paolo Giocoso © E.M. Promoción de Madrid S.A. 2009
© davidelfin 2009
José Barea © E.M. Promoción de Madrid S.A. 2009 AIR EUROPA AND MADRIDARE INVITING THREE LUCKY METRO READERS
– AND A FRIEND EACH – TOFLY TO MADRID
WIN FLIGHTS TO MADRID
© Dolores Promesas 2009
© Carmen March 2009 Luxenter
6 metro special products annuaL report 2009
00 news www.metro.xxxxx 00
XXXDAY, 00 MONTH 200X
Kalashnikov turns ninety
Kalashnikov in pictures
1 2
PHOTOS 1 PRIVATE 2 METRO RUSSIA3 PRIVATE 4 METRO RUSSIA 5 OLEG NIKISHIN/GETTY IMAGES
Kalashnikov facts
World records Kalashnikov’s name was put in the Guinness Book of Records a long time ago.
Not only because of his in- vention, but for being the only weapon specialist in the world who has had two monuments erected in his honour during his lifetime.
Monuments There are monuments to AK-47 all over the world, several of them in North Korea. The most well-known was erected in Egypt. A mosque with minarets in form of AK-47 cartridge storages was build in Iraq.
Autobiographies Society has paid much attention to Michail Kalash- nikovs’ birthdays during the last 15 years. Every 5 years the inventor of the AK-47 writes a new autobiography.
On November 10, Mikhail Kalashnikov, famous Russ- ian small arms designer and inventor of the AK-47, the most popular assault rifle in the world, will celebrate his 90th birthday. Metro Russia’s reporter met Kalashnikov in Izhevsk, the city where he has been working for many decades.
How do you feel about this cel- ebration?
I’m happy that my assault rifle continues to live and develop. I couldn’t wish any more. So I will celebrate my 90th birthday as a happy man.
What is the secret behind the popularity of AK-47?
A soldier created a weapon for a soldier. I served as a private in the Soviet army and knew well all the trou- bles soldiers face during their life. I wanted to make my assault rifle not only effective but comfortable.
When I improved its design, I always consulted with the experts. And soldiers told me what was nearly perfect and what I needed to make better. As a result, AK-47 became simple and effective. The assault rifle works under any condition, can shoot after being in water or falling to the ground. But remember that sometimes to make simple thing is much more compli- cated than making something sophisticated.
Is there a school of Kalashnikov today?
I have followers and succes- sors. My son took over me in weaponry. But he’s been very independent since the beginning of his career. And it’s great that I’m not irreplaceable. The industry can’t depend on a single man.
How long will your assault rifle be popular?
Every inventor wants his in- vention to live as long as it can. I think that AK-47 will be useful for the army in the future. Many experts think that no one can beat this weapon in its class be- fore 2025. But nothing should stay still, everything must develop.
Are you upset when you think that many countries produce millions of illegal copies of your assault rifle?
It’s a pity not only for me, but for the country, all the small arms specialists. The counterfeits harm the repu- tation of Russia. It began long ago, in 1990’s, not yes- terday. But now the govern- ment pay much more attention to the problem trying to resolve it.
You’ve been criticized many times because your assault rifle is used in different conflicts around the world.
I can’t agree with that. I cre- ated this weapon to defend my own country. And this is the main goal for what it serves. But the fact that AK- 47 is used in many hot spots
depends not on small arms specialists but on politicians.
Weapons don’t shoot. Men do. And I feel pain when peo- ple die. But if my weapon didn't exist, there would be something else instead.
If you could live in the West, you would be among the rich- est men … Money can’t be a criteria for everything. The most preci- ous thing when people come to me in different countries and say: ‘Your weapon saved my life’. Why should I need all those mil- lions? I’m happy with my life.
Metro interview
Michail Kalashnikov launced Kalashnikov Vodka in 2004. It is distilled in St Petersburg.
GETTY IMAGES
Inventor of the world’s most popular assault weaponinthe world celebrates his 90th birthdayMetro Russia meets Michail Kalashnikov for anexclusive interview inhometownIzhevsk“I am happy with my life”, he says.
MICHAIL KALASHNIKOV.
“WEAPONS DON’T SHOOT”
“I created this weapon to defend my own country.
And this is the main goal for whatit serves.”
MICHAIL KALASHNIKOV
ALENA BOBROVICH METRO WORLD NEWS IN RUSSIA
Izhevsk honors weapons legend
Shy inventor of world famous weaponMuseum and statues honour a living legend Michail Kalashnikov has put gunmanufacturing townIzhevsk onthe map
Effective range 100–800m sight adjustments Rate of fire 600rounds/
min
Cartridge 7.62x39mm Feed system 30-round detach- able box magazine Length 870 mm fixed wooden stock 875 mm folding stock extended 645 mm stock folded АК-47
100 milion 100
Weight 4.3 kg
More than of those assault
rifles have been produced until now in countries of the world.
АK-47 is the only weapon which is presented on national flags and coats of arms of several states – e.g. Mozambique and Zimbabwe.
It is considered that because of illegal production of Ak-47 Russia loses 2 billion dollars a year.
Artillery, bombers and rockets of all countries of the world have killed less people than the AK-47 has.
Kalash is one of the most widespread names in some African countries.
AK-47 is such a widespread weapon that sometimes it is cheaper than food.
World’s most popular weapon World’s most popular weapon
Created in 1946 Adopted for army in 1948
Kalashnikov on one of his business trips abroad. If he had lived in the west, the weapons designer would have made a massive fortune. AK47 has far outsold its Western rival the M-16 assault rifles.
A statue to honour all of Izhevsk gunsmiths – among the names is Kalash- nikovs’. There are two statues of Kalashnikov, one bronze bust in Kurya, the village in Siberia where he was born. And there is one made of metal at the museum in Izhevsk where he works.
Michail Kalashnikov meeting Russian president Vladimir Putin. The weapons designer was twice named Hero of Socialist Labor. In 1998 he was awarded an Or- der of Saint Andrew the Protoclete.
Kalashnikov with his neighbour Zoya Bogomolova, who has helped edit his autobiographies. “We came closer because of his writing”, she says. “But he is not so well know for his books.”
A worker makes an AK-47 at the gun plant in Izhevsk.
According to the Moscow-based Center for Analysis of Strategic and Technologies 70 million to 100 million Kalashnikovs have been built worldwide since 1947.
A statuette of Kalashnikov that was launched for his anniversary. “We have a tradition here in Izhevsk to decorate our flats with statuettes of Pyotr Tchaikovsky. Now we can add statuettes of Kalashnikov,” a shop assistant says.
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4 AK-47 made Mikhail Kalash-
nikov, its inventor from Rus- sia, famous all over the world. But his name was re- vealed only in 1990’s. Dur- ing the Soviet period people abroad thought that a big think-tank created this as- sault rifle and were sur- prised that the most popular weapon of the 20th century was engineered by a single person. Mikhail Kalashnikov has been living in Izhevsk, a city in the Ural, for 60 years and has been working in weapon factory Izhmash.
“There was an idea to re- name Izhevsk to Kalash- nikov after him,” says Zoya Bogomolova, Kalashnikov's neighbour. “Mikhail protest- ed against it. And the idea disappeared. He doesn't like themuseumeither.We were together at the open- ing ceremony. Kalashnikov felt uncomfortable, because he is modest and shy.”
But the museum is the mostpopularplacein Izhevsk.
“Now everyone knows who Kalashnikov is, that he is from our city,” says Dmit- ry Belyaev, a museum em- ployee.
“Whenwesaywhat
Mikhail Kalashnikov works in the factory, some visitors
of the museum are really surprised. ‘Is he still alive?’, they ask. AK-47 is so famous that many people think the inventor died long time ago.”
MikhailKalashnikov doesn't pay that much atten- tion to his popularity. He lives in the same 3-room flat he moved to 40 years ago with his family.
“There is no elevator, but when the building was fin- ished it was considered as an elite house,” says Zoya Bogomolova.
“We came here at the same time. During the Sovi- et period everyone knew thatfamousKalashnikov was living here, but no one talked to him because he was always surrounded by security guards. They were even in his flat.”
Kalashnikovovercame two tragedies there. First his wife Katya died, then his daughter Natasha died in car accident.
“She was 30 years-old when it happened,” says ZoyaBogomolova.“We knew her well and lament- ed, but couldn't tell him per- sonallybecauseofhis special status”.
ALENA BOBROVICH Kalashnikov vodka.
When?
Ongoing!
What?
Metro brings a high-quality, interesting, impactful free daily newspaper to nearly 17 million readers everyday. Our exclusive content surprises, informs and educates our readers. In 2009, we have interviewed world leaders, trendsetters, tastemakers and celebrities.
Exclusive content
When?
weekly section
What?
Metro Travel — “We live where you’re going.” Our 400 city experts and 8 million potential travelers are goers and doers:
Metro’s experts give you the inside track on how to get into their cities and get out of yours, in a high-density, high-frequency section.
Travel
When?
daily blog, weekly section, biannual runway preview
What?
As the global fashion editor for Metro International, Kenya Hunt gives readers a fun, inside look at the world of style.
Whether you’re a die-hard fashionista who knows your Lanvin from your Louis Vuitton or someone who just wants to find cute and affordable clothes to wear to work, she gives a behind-the-scenes look at the trends, personalities and products that drives fashion.
Style
The editorial direction of Metro is well-defined. Metro has created a virtual
newsroom where content is shared globally and the same stories are published on the
same day worldwide. All 19 local markets also contribute to the globally shared content.
annuaL report 2009 metro special products 7
Metro is a global newspaper published locally. As the world’s largest global newspaper, Metro is in a unique position to create global events, themes and products, selecting topics that are covered globally.
When?
April 22 & December 4; weekly section
What?
Our research shows that over 4 in 5 of our readers would like to become more green. Our twice- yearly GREEN METRO special editions, and weekly Green/Eco sections inform, raise
awareness and educate our readers on the issues and trends surrounding “green” lifestyles.
Green Metro
When?
weekly section
What?
Metro readers are active and health-
conscious. We respond to this interest with our
“BE” section, which features the latest in fitness, health, superfoods, yoga, alternative exercise – trends you won’t believe and exercises you can’t wait to try.
“BE”: well-being and fitness
“There’s a Victoria’s Secret model in every woman”
This is Anderson’s unique selling point.
“You can create your body. Muscle is a form of clay — a direct result of the
movementyouputit
through,” she says. The fit- ness world has never tack- led how to give women the body they dream of.
Most people have no ex- ercise plan, working out withoutreallyknowing how and why, which is where it all goes wrong.
Commitment is one thing, but jumping haphazardly from one machine to an- other at the gym confuses your body.
"The best is a series of 13 to 20 movements you know serve a purpose to your body and help wake up your muscles. Getting rid of problem areas is a strategic process.You have to use every muscle.”
“Burning calories is one thing —it’s genetic,” Ander-
son says. “What’s vital is yourmuscularstructure and how you change that.
Thisisnotsomething you’re born with.Calorie burning is not as important as muscular structure — we all have different weakness- es that are the key to why we are storing fat.
After 10 years of re- search, Anderson created a unique body-sculpting ma- chine "The Hybrid Body Re- former," and patented some 2,800 moves. “I have creat- ed a very specific type of workout, I can change any-
one’sbody.Without doubt.”
Anderson subscribes to the "have your cake — and eat it, too… " camp.
“I dislike the whole men- tality of dieting — if it’s your kids birthday, have a cupcake, don’t be afraid of food," she said.
Her guilty pleasure? “It’s really bad…” she admits.
“It’s this ice cream that’s in- sanely rich and enormous
—meltedchocolate,
chunks of peanut butter, roasted marshmallow- and thisisaftersteakand mashed potato.”
View weight loss as up- ping efficiency: If your ex- ercise plan involves cardio, and you’re too heavy to jump up and down, you must shift the weight. Her cutthroat diet? Cut out dairy, and limit carbohy- drates- some people can’t eat brown rice, especially if they carry weight around theirstomach–they should eat lean protein (grilled, steamed), vegeta- bles,lotsofkaleand spinach.
“I drink a green juice every day," she says. "Break- fast with power, and I’m
not opposed to eggs. Oils in any form — nuts, avocado
— are a no-no."
However, whatever you eat,forresults,people must work out 6 days a week.
“It’s taking care of your- self,” explains Anderson.
“You wouldn’t go for days withoutshoweringor brushing your teeth, would you?”
Three days a week isn’t enough — 20 minutes a day is better. "There are so many workout misconcep- tions," she says. "Calories in, calories out, sure it’s a fact but it doesn’t change themuscularstructure.
Everyone has a different problemarea,muscles build and develop a certain way and people need to un- derstand that.”
+
pluswww.metro.xxx MONDAY, 04 JANUARY 2010 00 fitness
Madonna’s
muscle
muse
ROMINA MCGUINNESS ROMINA.MCGUINNESS@METRO.LU METRO WORLD NEWS IN LONDON XXXXXXXXXX She’s the magic potion behind Madonna’s stage strength, Gwyneth Paltrow’s "Iron Man" pecs and helped Stella McCartney slip straight back into her pre-baby frocks. Personal trainer Tracy Anderson is surgery’s arch enemy and that’s why they all follow her moves — from London to L.A.
CRUNCH WITH SINGLE LEG DROP Lower Abs Lay on towel on the ground.
Both legs extend up so your heels rest on the counter top. Hands behind the neck and start in a crunched posi- tion. Keeping leg extended, drop on leg out to the side and un-crunch, crunch up when the leg goes back to the counter top.
AB AND EXERCISESARM
FROG CRUNCH Hip lines This exercise starts to use legs as an effective lever against the abs and the opening of the frog starts to get those sexy hip lines.
Crunch with knees bent in towards you, then extend feet out back to the top of the counter top.
ARM PULSES Triceps Up over the head, 1 small pulse, 1 reaching pulse ...
T LIFT Shoulders Arms out to both sides, ro- tate back and forth W LIFT Biceps Arms into a high V and then moving elbows to hips
Anderson’s advice
Be consistent:working out isn’t a joke Be focused:don’t drink wa- ter every five minutes – you won’t be able to con- nect with your body.
Be mentally tuned:tuning in will mean improved performance Be realistic:set goals you know you can achieve Be true:choose a program you know will have the outcome you want. If you don’t want to look like a body builder, don’t do bulky weights.
“It’s taking care of yourself,” explains Anderson. “You wouldn’t go for days without showering or brushing your teeth, would you?”
New design & identity
When?
2009 rollout
What?
The new design for the newspaper layout is the tool to produce the newspaper of today, not last night. Behind
— and beyond the headlines. We advance the story, using:
1) Expert analysis, commentary, powerful pictures and
new ways of using pictures to tell the stories, reader inter-
action, graphics, data 2) Newer, sleeker design that has a
magazine feel 3) Fewer colored one-page sections are less
choppy and give more continuity.
8 financial summary annuaL report 2009
2009 2008
€’000 €’000
Net revenue 220,232 295,475
Net revenue (excluding closed and divested operations) 197,870 220,946
Operating result (13,420) (19,954)
Operating result (excluding closed and divested operations) (3,046) (6,060)
Net profit/(loss) (21,650) 4,066
Operating result is excluding profit/(loss) on sale of shares in subsidiaries. The loss on sale of shares in 2009 was €6,606 thousand (2008: profit of
€37,261 thousand).
Closed and divested operations in the table above represents - Spain, Italy, Portugal and US.
Operations
The graphs below presents the net revenue and operating margin for Metro’s controlled operations (excluding closed and divested) for the past five years.
Sweden
Financial summary
-0,1 0 0,1 0,2 0,3 0,4 0,5
-20000 0 20000 40000 60000 80000 100000
2005 2006 2007 2008 2009
Northen Europe
-0,1 0 0,1 0,2 0,3 0,4 0,5
-20000 0 20000 40000 60000 80000 100000
2005 2006 2007 2008 2009
Southern Europe
-0,1 0 0,1 0,2 0,3 0,4 0,5
-10000 0 10000 20000 30000 40000 50000
2005 2006 2007 2008 2009
Rest of the world
-0,1 0 0,1 0,2 0,3 0,4 0,5
-10000 0 10000 20000 30000 40000 50000
2005 2006 2007 2008 2009
annuaL report 2009 9
48 percent of Metro readerS are feMaLe
10 ceo statement annuaL report 2009
M etro enters the new decade with a revitalized self confidence and awareness that we not only have managed to survive 2009’s global crisis, but that we have also outperformed the mar- ket.
The total operating loss for the full year excluding closed and divested operations was halved in 2009 to €3 million from €6 million in 2008. The year ended with record quarterly result of operating profits of €9.3 million. This proves the strength of Metro’s business model and Metro’s adaptability to changes in the economic climate.
When we entered 2009 the outlook did not seem as bright.
No improvements of market conditions were in sight and the advertising market was forecasted to decrease by 17 percent globally and by 23 percent where Metro is published.
1In comparison, total Metro sales adjusting for currency move- ments, closed and divested operations (Spain, US, Portugal and Italy) were down by only 7 percent. A substantial propor- tion of the 7 percent sales drop can be explained by a deci- mated recruitment sector in mature markets. However steady growth continues to be recorded in emerging markets.
In 2009 we started our zero tolerance strategy towards loss-making operations.
Consequently all major loss-making opera- tions were closed or divested. US, Portugal and Italy were fully divested to buyers who will publish Metro under a franchise agreement, providing continued revenues and value to the Group. I’m happy to see that these three operations have weath- ered the storm and seem to be well on
track. Spain, representing big losses in 2008, was closed in January.
During the year management has successfully implemented a cost cutting program in operations including right-sizing operations, lowering overheads and optimization of circula- tion and pagination, bringing operation costs down by 8 per- cent. Headquarter costs declined by 23 percent compared to 2008 and 50 percent compared to 2007, partly attributed to the restructuring of senior management.
Although 2009 has been one of the most turbulent years in the Group’s history, Metro has managed to make progress in
continueS
2009 has been
a year of change
for Metro
the long-term growth strategy by means of geographical ex- pansion in growth markets such as Russia and Latin America.
Launches of franchise operations in Ecuador and Moscow and further editions in Brazil, prove that growth is possible without large cash outflow. Metro has also acquired con- trolled interests in St Petersburg and increased a number of joint ventures in Chile.
Several successful brand extensions such as SubTV in Chile, Beauty magazine in St Petersburg, Metro Box and Pop in Hong Kong, and Student Magazine in Sweden, have been fur- ther developed in 2009. Online we, among others, launched Metrojobb in Sweden and Metropoker in France,
which already are showing profits. We are also creating creative solutions in the mobile sec- tor, with Canada as one of the leading opera- tions.
During the year we invested in Metro World News (“MWN”) the global news desk based in London. More pages in all Metro newspapers now contain high-qual- ity unique content produced by MWN, providing both a cost and competitive ad- vantage. We have also introduced a new layout for the newspaper to be imple- mented in all operations. In 2009, the new design was introduced in 15 opera- tions and has been exceptionally well re- ceived by both readers and advertisers across all markets. The remaining coun- tries will undergo the redesign in 2010.
By undertaking these actions, we are showing the market that Metro will continue to be at the forefront of news- paper innovation now and for years to come.
Additional proof of our commitment to innovation was seen in June when Metro was awarded “Newspaper of the Year 2009” at the inaugural Festival of Media Awards in Spain, Valencia. Metro In- ternational won the prestigious title over other international titles such as the Finan- cial Times, the Wall Street Journal and the New York Times. In September we also won the prestigious M&M award for the Best Con- tribution to an International Campaign by a media owner. This is the fourth award that the Group has won in consecutive years, compet- ing with companies such as MTV, CNN and Na- tional Geographic.
We enter 2010 with a stronger market position in most of our countries. For the full year 2009, all subsidiaries ex- cept Greece and Hungary were prof- itable. The successful implementation of the Group’s strategy has helped us to
move in the right direction and we are well positioned to benefit from a recovery of the global advertising market.
The main focus for 2010 will be:
• Continuous cost control whilst working hard to in- crease revenues
• Further expansion in Russia, Asia and Latin America
• Growth by brand extension in existing operations
• Increase the digital presence
• Show profit for the full year
2010 is an anniversary year. In February we celebrated the 15th anniversary of the mod- ern free daily newspaper. Whilst traditional
newspapers today suffer from decreased readership and an aging target group, free dailies experience the opposite. As the first ever free daily newspaper, Metro has revolu- tionized the media industry with its smart format, unique distribution and ability to at- tract a large, hard-to-reach young and active urban audience. I would like to take this op- portunity to thank our readers, advertisers and employees alike for making this small revolu-
tion possible.
Metro will continue to shape the future of media.
Not only in print but also in some of the many digital services that have been launched within
the last few years. We believe that with Metro’s strong focus on our target readers we will be able to serve them - and thereby our clients - with compelling on-line services as well as printed media.
I look forward to further progress in 2010!
Per Mikael Jensen
President & CEO
1Zenith Optimedia Dec 200
annuaL report 2009 ceo statement 11
“We enter 2010 with a stronger market position”
Per Mikael Jensen
12 annuaL report 2009
47 percent of Metro readerS are SingLe
annuaL report 2009 13
80 percent of Metro readerS are aged between 18 and 44 yearS oLd
