Sanoma Oyj : Pörssisijoittajan viikko 14 September 2022, presentation

Leading K12 learning company capturing further growth

in an attractive global market

Susan Duinhoven, President & CEO Pörssisijoittajan viikko, 14 September 2022

1	Pörssisijoittajan viikko, 14 Sep 2022

We have an ambitious strategy for sustainable, profitable growth

We are one of the global leaders in K12 education serving 25 million students

• Producing inclusive learning materials and platforms to promote equal learning opportunities
• Strengthening our #1 position in European K12 learning services
• Aiming for selective growth globally through M&A

We are Finland's #1 cross-media company with a weekly reach of 97%

• Providing trusted Finnish journalism and inspiring entertainment
• Continuing our successful digital transformation towards higher margin
• Increasing share of B2C provides sustainable future opportunities

Growing through M&A while paying an increasing dividend

• Supporting our growth strategy in learning with a solid balance sheet
• Growing our dividend with an attractive yield
• Investing in further digital growth and in our people

Our purpose

Through learning and

media, we have a positive

impact on the lives of millions of people every day

Our ambition

Group net sales* over 2bn€ by 2030

at least 75% from Learning

*1.3bn€ in 2021

2	Pörssisijoittajan viikko, 14 Sep 2022

We are #1 in K12 learning services

in Europe…

• We focus on K12, which is primary, secondary and vocational education (ie. 6−18 year-olds)
• • Supporting more than 25m students in 12 European countries
  • Having a ~16% market share
• Teachers and schools are our primary customers
• • Teachers are key decision-makers on which learning content to use
  • In our operating countries, learning content is largely publicly funded and typically represents 1−3% of public education spend
• Our learning services provide the teachers everything they need
• • Printed and digital learning content created together with teachers and matching the local curriculum
  • Digital learning platforms, either linked to our content or open
  • Content distribution services
• Our content has a positive impact on learning outcomes
• • Inclusive learning materials promote equal learning opportunities and support diversity and differentiation

3	Pörssisijoittajan viikko, 14 Sep 2022

…and are leading the way in

consolidating the market

• K12 is a stable and resilient market
• • Stable population of approx. 75 million students in Europe, corresponding to a market size of 4−5bn€
  • Public spending on education is increasing, spend per student varies between countries
  • Significant fragmentation and high barriers to entry due to localised nature
  • Stability and predictability as teachers typically consider changing the learning materials only every 4−8 years
• Our best-in-classdigital platforms and footprint in highly digitalised countries with high-quality learning outcomes give us unique benefits of scale
• Digitalisation within education is accelerating
• • Helping to drive market consolidation
  • Generating more stable revenue streams and higher profitability
  • Offering better scalability

Market growth estimate

steady

low single digit %

pa.

4	Pörssisijoittajan viikko, 14 Sep 2022

In Learning, we have a successful track record and ambitious plan for profitable growth

700 25%

	600					20%
	500					15%
	400
						10%
	300
	200					5%
						134
	100	56	61	76	96	0%
	0					-5%
		2017	2018	2019	2020	2021
		Net sales			Operational EBIT excl. PPA
		Comparable growth, %		Margin, %
		Long-term organic growth		Long-term margin
		target range			target range
5	Pörssisijoittajan viikko, 14 Sep 2022

M&A has accelerated our transformation

• 2019: Four acquisitions in K12 learning services
• 2020: Santillana, leading provider of K12 learning content in Spain
• 2022: Pearson Italy, the third largest provider of K12 learning materials in Italy

IncreaseM&A

Grow value per

market student share

Three levers for further growth

Long-term financial targets in Learning

Organic growth	Operational EBIT margin excl. PPA
2-5%	> 23%*
	* with current portfolio