Sanoma Oyj · OMXHEX:SANOMA

Sanoma Oyj — FY 2024 Earnings Presentation

36 slides from Sanoma Oyj's earnings presentation, Feb 11, 2025

  1. Slide 1: Full-Year Result 2024

    Full-Year Result 2024 Increased operational EBIT and strong free cash flow improvement Rob Kolkman, President & CEO Alex Green, CFO

  2. Slide 2: Continued progress towards our mid-term targets

    FY 2024 Continued progress towards our mid-term targets Operational EBIT margin excl. PPA 2024 Target Increasing profitability of Learning 19.2% > 23% Learning and Media Finland (18.7%) from 2026 onwards Media 8.2% 12−14% Finland (6.7%) Improving cash flow Group free 145m€ generation cash flow (105)

  3. Slide 3: Increased operational EBIT and strong free cash flow improvement

    FY 2024 Increased operational EBIT and strong free cash flow improvement Net sales Organic net sales Operational EBIT Operational EBIT Free cash Net debt / development excl. PPA margin excl. PPA flow Adj. EBITDA 1,345m€ -2% 180m€ 13.4% 145m€ 2.2 (2023: 1,393) (2023: 2%) (2023: 175) (2023: 12.6%) (20

  4. Slide 4: Net sales decreased mainly driven by discontinuation of low value contracts

    LEARNING FY 2024 Net sales decreased mainly driven by discontinuation of low value contracts  Net sales amounted to 764m€ (2023: 795) – The planned discontinuation of low value distribution contracts in the Netherlands and Belgium had an impact of -28m€ – Net sales declined by 17m€ in Spain (Q4 sta

  5. Slide 5: Stable operational earnings, margin improved

    LEARNING FY 2024 Operational EBIT excl. PPA Stable operational earnings, m€ margin improved  Operational EBIT excl. PPA was stable and amounted to 147m€ (2023: 148) 20.1 % 19.3 % 19.4 % 19.1 % 19.2 % – Net sales decrease in Spain 18.7 % 17.1 % 17.2 % 164 155 – Lower paper and personnel costs and pr

  6. Slide 6: Program Solar actions now materially completed

    Program Solar actions now materially completed  More than 80% of the actions related to Program Solar completed as planned by the end of 2024 – On track to deliver the 55m€ efficiencies in 2026 – Supports reaching Learning’s long-term profitability target of 23% in 2026 Realisation of Solar initiat

  7. Slide 7: Continued growth in digital within lower net sales

    MEDIA FINLAND FY 2024 Continued growth in digital within lower net sales  Net sales amounted to 581m€ (2023: 598)  Subscription sales grew by 3% – Good development in Ruutu+ throughout the year – Continued growth in digital news subscriptions  Advertising sales declined by 2% – Good growth in dig

  8. Slide 8: Improvement in operational earnings and margin

    MEDIA FINLAND FY 2024 Operational EBIT excl. PPA Improvement in operational m€ earnings and margin 6.7% 8.2% margin FY 2023 margin FY 2024  Operational EBIT excl. PPA improved to 48m€ 12.2 % (2023: 40) and margin to 8.2% (2023: 6.7%) 11.2 % – Continued growth in digital subscription sales 9.0 % mor

  9. Slide 9: The Board proposes a dividend of 0.39€ per share

    The Board proposes a Dividend per share € dividend of 0.39€ per share  The Board proposes a dividend of 0.39€ (2023: 0.37) per share to be paid for 2024 – Representing a total of approx. 64m€ – Pay-out of 44% of FCF  To be paid in three equal parts following the seasonality in Sanoma’s free cash f

  10. Slide 10: Key factors influencing 2025 performance

    Key factors influencing 2025 performance Expected 2025 Long-term targets Learning financial impact y-o-y for SBUs unchanged  Net sales:  Organic growth − Growth in other learning content businesses more than offsetting the  Lower net sales 2−5% last year of lower cycle in Spain − Ongoing disconti

  11. Slide 11: Outlook for 2025

    Outlook for 2025  In 2025, Sanoma expects that the Group’s reported net sales will be 1.28‒1.33bn€ (2024: 1.34)  The Group’s operational EBIT excluding PPA is expected to be 170‒190m€ (2024: 180)  The outlook is based on the following assumptions: – Demand for learning content will be relatively

  12. Slide 12: We continue with our ambitious strategy for sustainable long-term growth

    We continue with our ambitious strategy for sustainable long-term growth  Increasing profitability and free cash flow  Growing organically in Learning with curriculum renewals accelerating from 2026  Successful and accelerating digital transformation in Media Finland  Expanding through value-cre

  13. Slide 13: Financials

    Financials

  14. Slide 14: Stable operational EBIT in both businesses

    Q4 2024 Operational EBIT excl. PPA Q4 2024 vs. Q4 2023 Stable operational EBIT in m€ both businesses Learning + Favourable business mix as a result of the discontinuation of low-value contracts in the Netherlands and Belgium + Lower variable costs – Divestment of Stark -27 -27 Media + Growth in digi

  15. Slide 15: EBIT improved driven by solid operational performance and lower IACs

    EBIT improved driven by solid operational performance and lower IACs  FY 2024 IACs amounted to -62m€ Key income statement related items (2023: -82) and consisted of m€ Q4 2024 Q4 2023 FY 2024 FY 2023 – 17m€ restructuring costs related to Operational EBIT excl. PPA -27.3 -27.0 180.0 175.4 Program So

  16. Slide 16: Strong free cash flow improvement

    Strong free cash flow Free cash flow m€ improvement 140 Working 145 120 capital Financing Taxes Investments costs 100 EBITDA 105  Free cash flow improved to 145m€ (2023: 105) in 80 2024 60 40 + Higher operational results 20 + Lower investments in prepublication costs partly driven 0 by Solar 2023 E

  17. Slide 17: Continued progress in deleveraging the balance sheet

    Continued progress in Net debt m€ deleveraging the balance sheet 3.2 3.2 3.3 Long-term  Net debt and leverage significantly lower vs. target 2.9 2.9 2.8 2.8 previous year <3.0 – Net debt / Adj. EBITDA improved to 2.2 2.4 (2023: 2.8), below the long-term target of < 3.0 2.2  Equity ratio at 45.0% (

  18. Slide 18: Refinancing improved the maturity of external debt

    Refinancing improved the Maturity profile of external debt m€, 31 December 2024 maturity of external debt  Maturity of the 300m€ RCF extended to November 2027 with the 2nd and final extension option  150m€ Social Bond with a maturity of 3 years 100 issued in September – Funds used to finance or re

  19. Slide 19: Q&A

    Q&A

  20. Slide 20: Financial reporting in 2025

    Financial reporting in 2025 Interim Report Q1 2025 29 April Half-Year Report 2025 30 July Interim Report Q3 2025 30 October Financial Statements and Directors’ Report for 2024 week 14 AGM 2025 29 April 20 Full-Year Result 2024

  21. Slide 21: Appendix

    ~SUURET mh E

  22. Slide 22: Sanoma in 2024

    Sanoma in 2024 Learning Media Finland Net sales 764m€ Net sales 581m€ NET SALES Non-print 46% Non-print 57% 1,345m€ Margin 19.2% Margin 8.2% NON-PRINT SALES 51% Net sales, m€ Net sales, m€ Netherlands Subscription OPERATIONAL EBIT MARGIN Spain Non-print advertising 13.4% Poland Italy Print advertisi

  23. Slide 23: Unchanged long-term targets in both businesses

    Unchanged long-term targets in both businesses… Learning Media Finland 25% 700 20% 800 600 15% 20% 500 10% 600 15% 400 5% 10% 400 300 0% 5% 200 -5% 200 148 147 134 132 96 0% 100 66 70 69 67 74 66 -10% 56 61 76 40 48 0 -5% 0 -15% 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2

  24. Slide 24: Good progress towards the Group's ambitious long-term targets

    …and good progress towards the Group’s ambitious long-term targets Our key long-term financial and sustainability targets (FY 2024 in brackets) Net debt / Equity Increasing Adj. EBITDA ratio dividend < 3.0 35−45% 40−60% (2.2) (45.0%) of free cash flow (44%, Board’s proposal) Employee Experience Mana

  25. Slide 25: Group: Key figures

    Group: Key figures m€ Q4 2024 Q4 2023 m€ FY 2024 FY 2023 Net sales 241.5 253.4 Net sales 1,344.8 1,392.9 Operational EBITDA 23.5 27.8 Operational EBITDA 360.8 358.3 margin 9.7% 11.0% margin 26.8% 25.7% Operational EBIT excl. PPA -27.3 -27.0 Operational EBIT excl. PPA 180.0 175.4 margin -11.3% -10.7%

  26. Slide 26: Learning: Key figures

    Learning: Key figures m€ Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 Q3 23 Q2 23 Q1 23 FY 2024 FY 2023 Net sales 96.5 395.9 190.6 81.1 100.4 430.4 188.0 76.3 764.2 795.2 Operational EBITDA -4.3 178.9 72.2 -5.2 -5.5 186.4 69.5 -12.9 241.5 237.6 Operational EBIT excl. PPA -30.6 155.2 49.8 -27.6 -30.6 164.3 48.3 -33

  27. Slide 27: Current view on curriculum renewals in Learning's major operating countries

    Current view on curriculum renewals in Learning’s Learning major operating countries content 79% of net sales  Expected development of learning K12 publishing market values in Sanoma’s key in 2024 content sales in 2025−2027 is a operating countries indexed to 2020 function of changes in 150 Poland

  28. Slide 28: Media Finland: Key figures

    Media Finland: Key figures m€ Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 Q3 23 Q2 23 Q1 23 FY 2024 FY 2023 Net sales 145.0 144.1 151.9 139.9 153.1 149.9 153.4 141.5 580.9 597.8 Operational EBITDA 32.7 35.3 34.5 29.9 38.6 35.9 31.3 26.6 132.5 132.4 Operational EBIT excl. PPA 8.5 17.6 13.7 7.7 9.2 16.8 8.7 5.1 47.

  29. Slide 29: Finnish advertising market development 1/2

    Finnish advertising market development 1/2 Finnish measured media advertising markets Q4 24 Q3 24 Q2 24 Q1 24 Q4 23 Q3 23 Q2 23 Q1 23 FY 2024 FY 2023 Newspapers -16% -17% -17% -20% -13% -14% -11% -7% -18% -13% Magazines -10% -12% -9% -12% -14% -17% -22% -6% -10% -15% TV -2% 3% 2% 3% -6% -5% -4% -1%

  30. Slide 30: Finnish advertising market development 2/2

    Finnish advertising market development 2/2 Share of media advertising groups and development in 2024 (change % vs. 2023) Newspaper (-18%) 7% 3% 10% Freesheets (-22%) 2% 3% Magazines (-10%) 16% TV (+1%) 1,302m€ Radio (-2%) 5% Online incl. search and 55% social media (+3%) Movies (-7%) Outdoor (+3%) F

  31. Slide 31: Estimated amortisations of acquired intangible assets (PPA) of the Group

    Estimated amortisations of acquired intangible assets (PPA) of the Group  Acquired subsidiaries are consolidated using the Estimated amortisations of acquired intangible assets (PPA) 2024−2027 acquisition method, whereby the cost is allocated m€ to the acquired assets and liabilities assumed at the

  32. Slide 32: Group debt portfolio, December 2024

    Group debt portfolio, December 2024 External debt structure 1) Maturity profile of external debt m€, 31 December 2024 m€, 31 December 2024 37 100 100 169 150 456m€ 1) 32 269 119 50 2025 2026 2027 150 Term Loan 2022 RCF (fully unused) Term Loan 2022 Social Bond Term Loan 2023 Social Bond Term Loan 20

  33. Slide 33: Largest shareholders

    Largest shareholders 31 December 2024 Largest shareholders Holding by sector Number of % of Shareholders shares shares 1. Jane and Aatos Erkko Foundation 39,820,286 24.35 3% 13% 2. Holding Manutas Oy 21,870,000 13.37 Private companies 3. Langenskiöld Robin 12,273,371 7.50 17% 4. Seppälä Rafaela 7,65

  34. Slide 34: Analyst coverage

    Analyst coverage Carnegie Investment Bank Pia Rosqvist-Heinsalmi +358 9 6187 1232 Danske Markets Equities Sami Sarkamies +358 10 546 8468 Inderes Petri Gostowski +358 40 821 5982 Kepler Cheuvreux Kristoffer Carleskär +44 207 621 5149 Nordea Sanna Perälä +358 40 779 0845 OP Corporate Bank Joona Harja

  35. Slide 35: 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

  36. Slide 36: Please contact our Investor Relations

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

Sanoma — FY 2024 Earnings Presentation on 6ix