Sanoma Oyj · OMXHEX:SANOMA

Sanoma Oyj — Non-Deal Roadshow (November 2020)

29 slides from Sanoma Oyj's roadshow presentation, November 2020

  1. Slide 1: Two strong businesses, Learning and Media Finland, ready for growth

    Two strong businesses, Learning and Media Finland, ready for growth Roadshow presentation, November 2020

  2. Slide 2: Sanoma as an investment: two strong businesses, focus on growth and dividends

    1. Solid net sales and profitability 2. Sanoma Learning Growing business with strong digital SANOMA AS AN INVESTMENT: footprint and benefits of scale Two strong businesses, 3. Sanoma Media Finland focus on growth and Leading cross-media offering with stable dividends net sales and improving profitab

  3. Slide 3: Well-balanced business portfolio with majority of earnings from learning

    We have a well-balanced business portfolio with majority of earnings from the learning business already in 2020 Net sales Operational EBIT around 1,050m€ 1 excl. PPA around 14% 1 Sanoma Learning A growing European-based learning company offering Learning Learning 44% blended learning solutions, plat

  4. Slide 4: YTD 2020: Continued transformation and increasing focus

    YTD 2020: Continued transformation and increasing focus Acquisition of Santillana Spain was announced on 19 October, EV 465m€ and EV/EBITDA multiple 9.3, closing expected during H1 2021 Continued focus on Oikotie was divested to Schibsted on 16 July, growing esp. EV 185m€ and EV/EBITDA multiple 19.6

  5. Slide 5: Santillana Spain: a leading provider of learning content in Spain

    Santillana Spain: a leading provider of learning content in Spain  On 19 October, Sanoma announced the acquisition of Santillana Net sales split 2019 Spain, a leading provider of learning materials, primarily textbooks, K-12 for primary and secondary education in Spain 6% 7% ~90% 4%  Net sales wer

  6. Slide 6: Q1-Q3 2020: Net sales grew, operational EBIT and free cash flow improved

    Q1-Q3 2020: Net sales grew, operational EBIT and free cash flow improved ’ Net sales Comparable net Operational EBIT Free cash flow Net debt / Adj. sales growth excl. PPA EBITDA 835m€ -6% 156m€ 65m€ 1.0 (2019: 707) (2019: -1%) (2019: 133) (2019: 56) (2019: 2.8)  Net sales grew significantly in Lear

  7. Slide 7: Outlook for 2020

    Outlook for 2020 (published on 8 October) In 2020, Sanoma expects that the Group’s reported net sales will be around 1,050m€ (2019: 913). The Group’s operational EBIT margin excluding PPA is expected to be around 14% (2019: 14.8%), which in this case means the margin is not expected to be below 13%

  8. Slide 8: Continuing M&A growth strategy beyond the Santillana Spain acquisition

    Aiming to continue our M&A growth strategy also beyond the Santillana Spain acquisition M&A focus areas Using our scale and capabilities in learning design, technology and Learning services to  Enter new geographies Solid M&A  Expand offering in existing markets pipelines in both businesses Synerg

  9. Slide 9: We are well on track with our long-term targets

    We are well on track with our long-term targets Key ratios Long-term target 31 Dec 2019 30 September 2020 Net debt / adj. EBITDA < 2.5 2.7 1.0 Equity ratio 35-45% 30.5% 48.5% Increasing dividend Dividend payout 40-60% 58% n/a of free cash flow Q1-Q3 2020 Learning Comparable net sales growth 2-5% 0%

  10. Slide 10: Growing dividend supported by good profitability and solid cash flow

    Growing dividend supported by good profitability and solid cash flow  Dividend for 2019 is 0.50€ per share Dividend per share € – Increase of 11% vs. 2018 – 58% of free cash flow 1 – Dividend yield 5.3% (end of 2019) 60%  Paid in two parts – 0.25€ on 3 April 40% – 0.25€ on 6 November Dividend poli

  11. Slide 11: Both learning and media have an important role in society

    Both learning and media have an important role in society Learning Media  Our modern learning methods and platforms  Journalistic content supports freedom of speech support teachers in developing the full potential of and independent information gathering every student  Local entertainment contri

  12. Slide 12: Sanoma Learning, a growing European education company

    Sanoma Learning, a growing European education company Printed and Long-term target Operations in digital course materials and 20-22% 11 digital platforms ≈20% countries for teaching and oper. EBIT administration margin excl. 350 PPA 1 employees in tech Serving ≈500m€ 15m students net sales 1 Long-te

  13. Slide 13: We focus on learning services for K12

    We focus on learning services for K12 Education K12 Higher Corporate Life-long Pre-school Key Market Sectors Primary Secondary Vocational education learning learning School infrastructure  ICT and other equipment  Distribution & Maintenance services Learning services  Content: materials and metho

  14. Slide 14: From a publisher into an integrated provider of learning services

    We have grown from a publisher into an integrated provider of learning services… Commercial contact Net sales 1 480m€ Teachers Administrators Learning services Content: printed and digital materials and 55% methods Material distribution 30% Digital platforms for teaching 5% .me Digital platforms for

  15. Slide 15: Customer base grown to over 21 million students

    … and grown #1 our customer base #2 to over 21 million students Germany: 9.7 mn students UK: 8.7 mn students Spain: 6.4 mn students Learning content Digital platforms for teaching #1 France: 5.5 mn students Digital platforms for administration #1 Poland: 4.7 mn students #1 Distribution services Neth

  16. Slide 16: Sanoma Learning built through M&A to approximately 500m€ business

    Sanoma Learning has been successfully built through M&A to approximately 500m€ business… Tammi (Sanoma Pro) Iddink Finland the Netherlands, Sanoma Belgium, Spain WSOY Van In Sanoma Utbildning Essener Santillana Spain Finland Belgium Sweden the Netherlands Spain 1999 2004 2008 2011 2016 2019 2021 Mal

  17. Slide 17: We want to continue to grow through M&A

    … and we want to continue to grow through M&A  Using our scale and capabilities in learning design, technology and services – To enter new geographies in K12 – To expand our offering in existing markets  With the “High Five” business development program we have achieved scale benefits in our exist

  18. Slide 18: Media Finland, the leading cross media company

    Media Finland, the leading cross media company… Long-term target 12-14% Strong, independent 12.0% oper. EBIT media for generations margin excl. PPA 2,100 employees to come Long-term target for comparable growth +/-2% 577m€ 50% 97% non-print weekly reach net sales 18 Roadshow presentation, November 2

  19. Slide 19: Focusing on three core businesses

    … focusing on three core businesses  Sustainable demand  Our strong history and position Leading in domestic,  Our proven track record in independent journalism News & feature successful digital transformation  Growing market Leading entertainment  Unique combination of strengths house with mos

  20. Slide 20: Highly synergistic acquisition supporting digital news subscriptions in Finland

    Highly synergistic acquisition supporting the growth of Sanoma’s digital news subscriptions in Finland On 30 April 2020, Sanoma acquired Supporting Media Sustainable Alma Media’s regional news media future for business in Finland: 2019 net sales Finland’s long- Growing term profitability independent

  21. Slide 21: Learnings and successes at Helsingin Sanomat supporting digital growth

    Recent learnings and successes at Helsingin Sanomat supporting combined digital growth  Number of digital-only subscriptions at HS clearly above 1-2% annual growth in HS subscription base 100k, 30% of total subscription base – Total number of subscriptions growing for the fourth year 400k in a row,

  22. Slide 22: Digital transformation reduces net sales but increases contribution per subscriber

    Digital transformation reduces net sales but increases contribution per incremental subscriber  Acquiring an additional subscriber Net sales per additional … but contribution increases 1 for digital instead of printed news subscription 1 reduces… will Indexed – Generate half the net incremental 150

  23. Slide 23: Two strong businesses, focus on growth and dividends

    1. Solid net sales and profitability 2. Sanoma Learning Growing business with strong digital SANOMA AS AN INVESTMENT: footprint and benefits of scale Two strong businesses, 3. Sanoma Media Finland focus on growth and Leading cross-media offering with stable dividends net sales and improving profitab

  24. Slide 24: Appendix

    Appendix

  25. Slide 25: Oikotie was divested to Schibsted for an EV of 185m€

    Oikotie was divested to Schibsted for an EV of 185m€  Divestment of Oikotie, the leading online classifieds player in Finland, was announced and closed on 16 July  EV 185m€, corresponding to EV/EBITDA multiple of 19.6 1)  Evaluation of strategic options for Oikotie announced on 11 February conclu

  26. Slide 26: Divestment of Media Netherlands

    Divestment of Media Netherlands  On 10 December 2019, Sanoma announced it has signed an agreement to divest the strategic business unit Sanoma Media Netherlands  The divestment was completed on 20 April 2020  Media Netherlands is reported as Discontinued operations in Sanoma’s 2019-2020 financial

  27. Slide 27: Key impacts and risks of the coronavirus pandemic and their mitigation

    Key impacts and risks of the corona virus pandemic and their mitigation  In Learning, no major impact on net sales and profitability are currently Monthly advertising development, Jan-September 2020 1 expected as there will be no major changes in school purchasing and % curriculum renewals Jan Feb

  28. Slide 28: Disclaimer

    Disclaimer The information above contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or future financial performance, including, but not limited to, expectations regarding market growth and development as well growth and profitability of Sanoma

  29. Slide 29: Please contact our Investor Relations

    Please contact our Investor Relations: Kaisa Uurasmaa, Head of IR & CSR M +358 40 560 5601 E kaisa.uurasmaa@sanoma.com ir@sanoma.com www.sanoma.com

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