Slide 1: Pearson 2025 Interim Results
Pearson 2025 Interim Results Friday 1st August 2025 1
Slide 2: Forward-looking statements
Forward-looking statements Except for the historical information contained herein, the matters There are a number of factors which could cause actual results and discussed in this presentation include forward-looking statements. developments to differ materially from those expressed or implied by th
Slide 3: Agenda
INTERIM RESULTS Agenda 1 Market Dynamics 2 Strategic and Operational Progress 3 Interim Financials 4 Q&A Copyright 2025 Pearson. All rights reserved. 3
Slide 4: Key Takeaways
INTERIM RESULTS Key Takeaways Strategy remains unchanged and Ongoing execution focus On track to meet 2025 well established across the and delivery priorities organisation Progress to date strengthens conviction in medium term trajectory Copyright 2025 Pearson. All rights reserved. 4
Slide 5: Market dynamics
INTERIM RESULTS Market dynamics Context Go Forward • Confident in PDRI's merit-based hiring value prop US Federal • PDRI <2% of Pearson Group sales • Long standing relationship with Federal Govt & Office for Government • Federal Govt hiring and funding freezes Personnel Management • Enterprise oppor
Slide 6: Strategic framework is unchanged
INTERIM RESULTS Strategic framework is unchanged The World’s Lifelong Learning Company Why Helping people realise the life they imagine through learning Medium term guidance Driving Performance Execution in the Core Business Synergies Mid-single digit underlying sales CAGR What Average margin growth
Slide 7: Driving performance in the Core Business
INTERIM RESULTS Driving performance in the Core Business Assessment & Qualifications Higher Education • Operationalised Career & College • Pearson VUE contract wins and strong retention Readiness K12 sales team • US Student Assessment customer renewals Execution • First statewide adoption of Clinica
Slide 8: Driving performance in the Core Business
INTERIM RESULTS Driving performance in the Core Business Virtual Learning Enterprise Learning & Skills English Language Learning • Positive retention trends in Spring semester • Global Sales Team and key account management • Partnership with BorderPass to • New enrolment portal rolled out across bro
Slide 9: Driving performance in the Core Business
INTERIM RESULTS Driving performance in the Core Business Transforming Implemented Modern Organisational AI-driven Operational Revenue Operations Marketing Approach Effectiveness Improvements Enhancing sales processes and Improved outcomes across Performance culture AI customer service systems for re
Slide 10: Execution Synergies
INTERIM RESULTS Execution Synergies Product & Modern Software & Product Strategic Service Bundling Development Partnerships Vu Consolidation to key strategic Simplification of product estate Single product management tool partners Hyperscalers Services Partners Lead with Pearson research improving
Slide 11: Targeted Market Expansion
INTERIM RESULTS Targeted Market Expansion Capital allocation targeting investment into faster growth segments Adjacent Market Opportunities Innovation to Support Future Growth ~$80B+ ~$15B (5%+ CAGR) (2% CAGR) Core + Adjacent Core Opportunities Partnership with McGraw Hill Formative Assessment Colle
Slide 12: Medium Term Growth Vectors
INTERIM RESULTS Little smaller Medium Term Growth Vectors Early Careers Enterprise Skilling Existing capabilities with a licence to win Leaders are struggling to understand employee skills Fastfor Meta growth adjacent market Education Meta Capabilities for Education for talent planning, sourcing & d
Slide 13: Interim Financials
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Slide 14: H1 2025 Financial Highlights
INTERIM RESULTS H1 2025 Financial Highlights • H1 financial performance in line with our Sales £1,722m Adjusted operating profit expectations up 2% underlying £242m up 2% underlying (2024: £1,754m) (2024: £250m) • Full year outlook reaffirmed • Sales and adj. operating profit up 2% on an underlying
Slide 15: H1 2025 Sales
INTERIM RESULTS H1 2025 Sales Underlying £m 2025 20241 Headline growth growth2 Assessment & Qualifications 802 811 (1)% 2% Virtual Learning 242 254 (5)% (1)% Higher Education 337 336 0% 4% English Language Learning 171 188 (9)% (3)% Enterprise Learning & Skills 170 165 3% 4% Total sales 1,722 1,754
Slide 16: H1 2025 Adjusted Operating Profit
INTERIM RESULTS H1 2025 Adjusted Operating Profit Headline Underlying £m 2025 20241 Margin 2025 Margin 2024 growth growth2 Assessment & Qualifications 170 187 21% 23% (9)% (6)% Virtual Learning 39 31 16% 12% 26% 32% Higher Education (3) (7) (1)% (2)% 57% 75% English Language Learning (7) 4 (4)% 2% (
Slide 17: H1 2025 Cash Performance
INTERIM RESULTS H1 2025 Cash Performance £m H1 2025 H1 2024 YoY Change Adjusted Operating Profit 242 250 (8) Net capex investment 13 31 (18) • Good operating cash performance driven by Net product development investment 14 14 - ongoing working capital Working capital, FX and other (143) (166) 23 man
Slide 18: 2025 Outlook Unchanged
INTERIM RESULTS 2025 Outlook Unchanged Full year H2 phasing considerations Group In line with market expectations* Stronger sales growth in H2, in particular in Q4 Assessment & Growth will be H2 weighted, in particular to Q4, due to new and renewed Grow low to mid-single digit Qualifications contrac
Slide 19: 2025 Outlook Unchanged
INTERIM RESULTS 2025 Outlook Unchanged Full year Adjusted operating profit In line with market expectations* Group profit Interest c.£65m – cashflow strength offsetting acquisition funding Tax 24 - 25% Free cash flow conversion** of 90-100% + £0.1bn Cash flow State Aid repayment received in Q1 2025
Slide 20: Financial Summary
INTERIM RESULTS Financial Summary H1 performance in line with expectations Remain on track to deliver 2025 outlook Known business unit dynamics in place to support stronger H2 growth Strong financial position driven by excellent cash performance, supporting continued investment in the business and s
Slide 21: Wrap up
Wrap up Copyright 2025 Pearson. All rights reserved. 21
Slide 22: Key Takeaways
INTERIM RESULTS Key Takeaways Strategy remains unchanged and well established across the organisation Ongoing execution focus and delivery On track to meet 2025 priorities Progress to date strengthens conviction in medium term trajectory 22 Copyright 2025 Pearson. All rights reserved. 22
Slide 23: Appendix
Appendix Copyright 2025 Pearson. All rights reserved. 23
Slide 24: Selected Data Points for reference
APPENDIX Selected Data Points for reference Higher Education Inclusive Access No. of virtual US digital VUE test growth PTE volume schools and subscriptions volumes career programmes School year 25/26: 42 virtual schools H1 2025 21% 4.7m 491k 10.8m and 42 career programmes* School year 24/25: 40 vir