Pearson : Financial Document

Forward-looking statements

Except for the historical information contained herein, the matters discussed in this statement include forward-looking statements. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability of financing, anticipated costs savings and synergies and the execution of Pearson's strategy, are forward- looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will occur in future. They are based on numerous assumptions regarding Pearson's present and future business strategies and the environment in which it will operate in the future.

There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including a number of factors outside Pearson's control. These include international, national and local conditions, as well as competition.

They also include other risks detailed from time to time in Pearson's publicly-filed documents and you are advised to read, in particular, the risk factors set out in Pearson's latest annual report and accounts, which can be found on its website (pearsonplc.com).

Any forward-looking statements speak only as of the date they are made, and Pearson gives no undertaking to update forward- looking statements to reflect any changes in its expectations with regard thereto or any changes to events, conditions or circumstances on which any such statement is based. Readers are cautioned not to place undue reliance on such forward- looking statements.

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Pearson 2022 Interim Results

1st August 2022

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Our clear focus on growth is delivering results

Continued strategic and operational momentum across the business with an expanding consumer base

Strong H1 financial performance, full year expectations reaffirmed

New operating model has identified at least £100m of further efficiencies

Driving successful change with targeted investments, acquisitions and disposals

Proven resilience despite inflationary and economic headwinds with a balanced sector footprint

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Financial

Review &

Outlook

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Strong H1 financial performance

• Strong H1 financial performance and continued momentum, full year expectations reaffirmed
• Underlying sales up 6%, adjusted operating profit up 22%, EPS up 12p
• Dividend up 5%
• Share buyback programme progressing well, over £165m repurchased
• Further efficiencies accelerating mid- teens margins from 2025 to 2023

Revenue

£1,788m

up 6% underlying

(H1 2021: £1,597m)

Adjusted earnings per share

22.5p

up 114%

(H1 2021: 10.5p)

Adjusted operating profit

£160m

up 22% underlying

(H1 2021: £127m)

Interim dividend

6.6p

up 5%

(H1 2021: 6.3p)

Operating cash flow

£9m

(H1 2021: £10m)

Net debt

£(810)m

(H1 2021: £(646)m)

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