Sanoma Oyj : Roadshow presentation, May-June 2024

Unique sustainability profile with increasing profitability

Roadshow presentation

May-June 2024

We are a leading European K12 learning company and #1 digital media company in Finland

• We are a leading European K12 learning company serving 25 million students

-	Focusing on stable and resilient K12 market (ie. 6−18 year-olds) with high barriers to entry	#1
-	Teachers and schools are our primary customers	#2

• Providing printed and digital content, digital platforms and distribution services

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

- News & feature, Entertainment and B2B marketing solutions

• 900k subscriptions with paid for digital, out of 2.7m households in Finland

- Print advertising already <10% of net sales

Net sales	Operational EBIT excl.PPA
FY 2023	FY 2023
57%		79%
Learning	1,393	Learning	175
	m€		m€
	43%		21%
	Media		Media
	Finland		Finland	#1

#1

#1#1

#3

2 Roadshow presentation May-June 2024

We have more than doubled Learning's net sales, creating

a leading European K12 learning business

Iddink

ITS Learning

the Netherlands, 9 countries Belgium, Spain

2019

Essener ClickEdu

the Netherlands Spain

Successful

integration and implementation of LOMLOE

Santillana Spain

Spain

20202021

	Highly
	synergistic and
Regional news	successful
media business	integration,
Finland	completed end
of 2021

Italian

integration

nearly

completed

Pearson Italy			Group net sales
Italy
			development
Pearson Germany
							m€
Germany
					~800
	Learning	~300
2022	Media Finland	~600	~600
		2018	2023

Learning representing ~80% of Group's profitability in 2023

3 Roadshow presentation May-June 2024

Three strategic focus areas to deliver increasing profitability and prepare for future growth

1. Increasing profitability of Learning and Media Finland

• In Learning, we benefit from our increased scale and will reach the long-term profitability target in 2026 through Program Solar
• In Media Finland, we continue our successful digitalisation and efficiency improvements while expecting to benefit from future recovery in the Finnish economy

1. Growing organically and through smaller in-market acquisitions

• Growing the learning content business through price increases and market share gains
• Strengthening our digital offering in journalism and entertainment in Finland also through partnerships
• Finding smaller, highly synergistic acquisitions in our current operating countries

1. Deleveraging the balance sheet

• Long-termleverage target unchanged at < 3.0, improving free cash flow will allow deleveraging
• Dividend continues to be an important part of our equity story - 40−60% payout range in dividend policy allows for changing economic conditions, investments levels and deleveraging needs

Our purpose

Through learning

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

4 Roadshow presentation May-June 2024

Sanoma's learning and media businesses have

a unique sustainability profile

A unique positive impact with…

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

…clear commitments and ambitious targets

• Alignment with UN Sustainable Development Goals
• Signatory of UN Global Compact
• Included in Nasdaq Helsinki Sustainability Index
• Emission reduction targets for Scopes 1, 2 and 3* validated by Science Based Targets initiative (SBTi)
• SBTi targets and developing inclusive learning solutions linked to the 300m€ revolving credit facility (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		10.4
		Scale 100-0,
Scale CCC to AAA		lower score = lower risk
Upright		ISS
74%		C+
Scale CC to AAA		Scale D to A+
CDP Climate		S&P Global ESG
A-		44
Scale D- to A		Scale 0-100

5 Roadshow presentation May-June 2024

Learning

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 about 25 million students across Europe
  • Having a ~17% market share
• Teachers and schools are our primary customers
• • Teachers are key decision-makers on which learning content to use and 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 services provide teachers with 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

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• Inclusive learning materials promote equal learning opportunities and support diversity and differentiation

Learning

K12 learning services offer attractive opportunities…

K12 is stable and predictable business

• Stable population of approx. 75 million students in Europe, corresponding to a market size of 4−5bn€
• Public spending on education is increasing and resilient to crises
• Significant fragmentation and high barriers to entry due to localised nature
• Digitalisation brings more

stable revenue streams and	Market
in general, better profitability	growth estimate
steady
	low single
	digit % p.a.

K12 learning

services

Empowering

learning of

about 25 million

students

We are #1 in K12 learning services in Europe and see benefits from scale

• Harmonising our digital platforms and technology across countries
• Further investigating opportunities for shared use of content

K12 offers growth opportunities to reach our long-term goals

• Sustained organic growth in-line with our long-term target of 2−5%
• Focus on synergistic in-market acquisitions
• Digitalisation one of the key consolidation drivers

Underlying trends in K12 learning

Use of (generative) AI		Structural shortage of teachers		Changes in economic environment

7 Roadshow presentation May-June 2024

Learning

…while learning content sales vary driven by

curriculum renewals in our major operating countries

• Expected development of learning K12 publishing market values in Sanoma's key

content sales in 2023−2026 is a	operating countries indexed to 2020
function of changes in	140

Learning

content

74%

of net sales in 2023

• • Number of students
  • Expenditure
  • Market share
• Mix within learning content sales is changing

	Poland
	Sanoma
130	learning
	content
	net sales*
	Nordics
120	Belgium
	Netherlands
110	Spain
	Italy
100

90
2020	2021	2022	2023	2024	2025	2026

8 Roadshow presentation May-June 2024

* Sanoma learning content net sales excl. the impact of the Italian acquisition in 2022 and 2023

Learning

We aim to reach our long-term profitability target of 23% in

2026…

In 2026, net sales are expected to be stable vs. 2023 with higher share of more profitable learning content business

			Long-term
Printed and digital			organic net
~75%	~80%	sales growth
learning content
	target

Local margins varying	2−5%
between 15−35%

Digital platforms *
~10%
Average margin 5−10%		~15%
Distribution	~15%
	5−10%
Average margin 0−5%
		2023		2026 est

Learning's profitability to reach the long-term target of 23% in 2026 supported by Solar

Operational EBIT margin excl. PPA, %

		Annual Solar benefits…	~23%
19.4%	18.7%
		…offset by the impact
		of fewer curriculum
		changes until 2026
2022	2023	2024	2025	2026

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… supported by Program Solar

• Solar brings full benefits from the increased scale of the business
• Costs related to Solar booked as IACs totalling 45m€; 22m€ booked in 2023, approximately similar amount expected in 2024
• Program streams touch our key business operations across countries and most of them will be completed by the end of 2024

Learning

Solar benefits are split between program streams

%

Organisational optimisation*

Publishing process improvement

Harmonisation of digital platforms

Other optimisations

• Post-curriculumrenewal optimisation in Spain and Poland
• Optimising selected other operations
• Increasingly leveraging benefits of scale in content creation (sharing) and production (centres of excellence)
• Reviewing publishing portfolios and plans
• Optimising product development and maintenance through outsourcing and nearshoring mainly to Poland and Spain
• Rightsizing support functions by optimising the overall organisational structure

55m€

EBIT impact

from 2026

onwards

Organisational optimisation

Publishing process improvements

Digital harmonisation

Other optimisations

* All organisational optimisation actions are subject to works council negotiations and other local legal procedures.

10 Roadshow presentation May-June 2024

More information about the progress of Solar on p. 25