Scholastic : Q3 2024 Presentation

Third Quarter 2024 Earnings Call Presentation

Thursday, March 21, 2024

Forward-Looking Statements / Regulation G

This presentation contains certain statements made today which will be forward-looking. These forward-looking statements, by their nature, are subject to various risks and uncertainties, and actual results may differ materially from those currently anticipated.

Today's comments include references to certain non-GAAP financial measures as defined in Regulation G. The reconciliation of these non-GAAP financial measures with the relevant GAAP financial information and other information required by Regulation G is provided in the Company's earnings release, which is posted on the Company's investor relations website at investor.scholastic.com.

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Peter Warwick

President and Chief Executive Officer

Third Quarter 2024 Highlights

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Strong Trade publishing sales and 360-degreecontent-creation strategy, further establishing leadership in children's publishing and media

Announced strategic investment in 9 Story Media Group, a highly successful children's media creator with incremental opportunities for production and global licensing of Scholastic IP

Solidly executed in School Reading Events and Education Solutions, navigating currently complex environment in U.S. schools and positioning for strong Q4 and long-term growth

Returned over $60 million to shareholders in Q3, demonstrating confidence in long-term outlook

Recorded Q3 results in-line with expectations for seasonally small quarter

Affirmed previously revised FY24 guidance for Adjusted EBITDA of $165 to $175 million

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Third Quarter 2024 Segment Highlights

• Children's Books revenues declined 5%, reflecting planned resizing of Book Clubs and lower expected production revenue from Scholastic Entertainment
• • Consolidated Trade revenues up 15%, excluding Scholastic Entertainment, outperforming retail book-selling market as new releases dominated best-seller lists
  • Scholastic Entertainment continues to execute 360-degreecontent-creation strategy for core and "newstalgia" brands
  • In seasonally smaller quarter, School Reading Events revenues down, reflecting strategic resizing of Book Clubs. Book Fairs revenues down slightly
• Education Solutions revenues decreased modestly, as growth strategy operationalized, and key product lines aligned with market to deliver blended, literacy-focused solutions
• International revenues were up 16% on continued recovery in major markets, particularly in Canada and the U.K., and in Asia

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Transaction Overview - Scholastic + 9 Story™

• Scholastic to acquire 100% of the economic interest in and a minority of voting rights in 9 Story Media Group ("9 Story"), a leading creator, producer and distributor of premium, animated & live-action children's content
• Purchase price of approximately USD $186M1, subject to customary purchase price adjustments
• Provides significant strategic benefits and incremental opportunities to build and monetize global, multi-media children's brands, accelerating Scholastic's 360° content creation strategy
• Expected to close in Scholastic's fiscal 2025 first quarter2, funded from Scholastic's available cash and revolving credit facility

1) Represents CAD $250M at CAD/USD exchange rate of 0.74 as of March 11, 2024; 2) Scholastic's fiscal 2025 first quarter begins June 1, 2024

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9 Story At A Glance

9 Story is a leading independent creator, producer and distributor of premium children's content

• Award-winning,turn-key global production studios in Toronto, Dublin, and Bali with state-of-the-art animation and live-action production capabilities
• Ability to tap significant Canadian and Irish tax subsidies & pre-sell productions through global distribution relationships to de-risk project financing
• Extensive kids' content library across a wide range of genres including 2-D and 3-D animation and live action
• In-housedistribution and merchandising & licensing teams with global sales network maximizes long-term monetization opportunities

KEY METRICS

5,000+		74%
Half Hours of		of Library Content Owned
Distributed Catalog		IP or Long-Term Rights
131		18
Consumer Product		Animation
Licenses Globally		Production Lines
70+		~1,000
Properties Placed on Major		Half Hours on
AVOD Platforms		Streaming Platforms

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Emmy® Award Wins

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Transaction Accelerates 360° Content Creation Strategy

Supports growth of Scholastic children's franchises, driving book sales, creating additional value for Scholastic authors and partners, with the power to introduce millions of new kids and families to

Scholastic books and$ stories

Bring Scholastic's award-winning content from the pages of books and series to big and small screens

9 Story enables acceleration of page-to-screen capabilities including development

and production, with enhanced distribution, merchandising & licensing capabilities

Drive long-term book sales & new book and series print publishing

Introducing More

Children & Families to

Scholastic Brands & Stories by Reaching Kids Where They Are

Build valuable global franchises through expanded distribution, merchandising & licensing, accelerating already strong momentum of Scholastic Entertainment

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Transaction Highlights

• Accelerates 360° content creation strategy with significant brand & content monetization opportunity

• Investment in best-in-class production studios with global distribution & licensing capabilities

• Risk-mitigatedproduction model through advantageous tax opportunities & ability to pre-sell productions

• Complementary end-to-end creative and production capabilities across the IP lifecycle

• Talented and experienced management team with highly-aligned cultures and values

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Haji Glover

Chief Financial Officer and Executive Vice President