Sanoma Oyj : Private investor event (Pörssi-ilta), presentation

Sanoma:

An innovative and agile learning and media company

We impact the lives of millions of people every day

Rob Kolkman, President & CEO

Pörssi-ilta, Helsinki, 5 March 2024

We are a leading

European K12

learning company

and

#1 digital media

company in Finland

2	Pörssi-ilta, Helsinki 5 March 2024

Sanoma at a glance

Net sales

FY 2023

57%

Learning 1,393m€

43%

Media

Finland

Operational EBIT excl.PPA

A leading European

K12 learning company

• Size doubled in the past five years resulting from M&A and organic growth
• Serving approx. 25 million students
• Leading positions in key markets
• Stable and resilient K12 market
• High barriers to entry

Net sales 795m€

Operational EBIT excl. PPA 148m€, corresponding to 18.7%

#1 digital media company in Finland

• Leading Finnish media brands in News & feature, Entertainment and B2B marketing solutions
• 900k subscriptions with paid for digital, out of 2.7m households in Finland
• Print advertising <10% of net sales

Net sales 598m€

Operational EBIT excl. PPA 40m€, corresponding to 6.7%

FY 2023

79%

Learning

175m€

Sanoma Group

Net debt / Adj.

Equity

Free cash

Free cash flow

Dividend per

Margin 12.6%

21%

Media

Finland

EBITDA	ratio	flow	per share	share
2.8	42.5%	105m€	0.64€	0.37€

3	Pörssi-ilta, Helsinki 5 March 2024

We are Finland's #1 digital media company reaching 97%

of all Finns every week

Strong portfolio of independent and complementing brands with substantial digital synergies

News & Feature	Entertainment
(~2/3 of Media Finland net sales)	(~1/3 of Media Finland net sales)

Large audiences to build reach for B2B

(<50% of Media Finland net sales)

Monetising B2C

subscriptions

(>50% of Media

Finland net sales)

Ad-funded journalism

Linear TV and Radio

Free articles		Ad-fundedon-demand	We have strong
	1 standalone
			brands …
Paid subs	1.4m	Paid subs
	subscriptions

2

… with further potential to combine digital subscription products

4	Pörssi-ilta, Helsinki 5 March 2024

We are a leading European K12 learning company

• We focus on K12, which is primary, secondary and vocational education (ie. 6−18 year-olds)
• Teachers and schools are our primary customers, and we provide them with everything they need
• • Teachers are key decision-makers on which learning content to use
  • They typically change learning materials every 4−8 years
  • In our operating countries, learning content is largely publicly funded and typically represents 1−3% of public education spend
• Our learning content has a positive impact on learning outcomes

Supporting about

25

million students

5	Pörssi-ilta, Helsinki 5 March 2024

Different blended offerings reflect the different stages of our markets

Blended

learning is the

preferred

solution for

teachers

Print

Different levels of blended learning

Digital

Print book with	Print book with	Print and digital fully blended
digital version	digital version and exercise platform	adding distinctly different parts
		of the learning experience

Teacher materials on how to teach blended learning

6	Pörssi-ilta, Helsinki 5 March 2024

Sanoma represents a unique sustainability profile

We have a unique sustainability profile…

Intrinsic positive impact of both business in the lives of millions of people every day combined with ambitious targets and solid ESG performance

… and ambitious climate targets

• Our emission reduction targets were validated by Science Based Targets initiative (SBTi) in November 2023
• SBTi targets by 2030
• • Own operations absolute Scope 1 and 2 GHG emissions -42%
  • Supply chain absolute Scope 3 GHG emissions -38%
• SBTi targets and developing inclusive learning solutions also linked into the pricing of our 300m€ RCF

Scope 3 categories included in the target are purchased goods and services, fuel and energy related activities, and upstream transportation and distribution, base year for all targets 2021

MSCI		Sustainalytics
AA		10.9
		Scale 100-0,
Scale CCC to AAA		lower score = lower risk
Upright		ISS
+75%		C+
Scale limitless negative		Scale D to A+
to +100%
CDP Climate		S&P Global ESG
A-		44
Scale D- to A		Scale 0-100

7	Pörssi-ilta, Helsinki 5 March 2024

Solid position and clear path to meet our long-term financial targets

Increasing profitability

Improving cash flow generation

Strengthening the balance sheet

Long-term financial targets

Learning

Organic growth	2−5%
Operational EBIT	> 23%
margin excl. PPA	(from 2026 onwards)
Media Finland
Organic growth	+/- 2%
Operational EBIT	12−14%
margin excl. PPA
Sanoma Group
Net debt / Adj.	< 3.0
EBITDA
Equity ratio	35−45%

Dividend policy	Increasing dividend, 40−60%
of annual free cash flow *

8 Pörssi-ilta, Helsinki 5 March 2024

• When proposing a dividend to the AGM, the Board of Directors will look at the general macro-economic environment, Sanoma's current and target capital structure,
  Sanoma's future business plans and investment needs as well as both previous year's cash flows and expected future cash flows affecting capital structure.

Our purpose

Through learning

and media, we have a positive impact on the lives of millions of people every day

Key takeaways

• Aiming for the Group's net sales to be over 2bn€ by 2030, with at least 75% coming from the learning business
  - Continued focus on M&A in Learning
• Learning achieving its long-term profitability target of 23% by 2026, supported by our increased scale
• Dividend continues to be an important part of our equity story, payout ratio 40−60% of free cash flow

9	Pörssi-ilta, Helsinki 5 March 2024

Thank You!