Slide 1: Full-Year Result 2022
Full-Year Result 2022: Net sales continued to grow and operational EBIT was affected by inflation Susan Duinhoven, President & CEO Alex Green, CFO
Slide 2: Net sales continued to grow and operational EBIT was affected by inflation
FY 2022 Net sales continued to grow and operational EBIT was affected by inflation Net sales Organic net sales Operational EBIT Operational EBIT Free cash Net debt / growth excl. PPA margin excl. PPA flow Adj. EBITDA 1,298m€ 1% 189m€ 14.6% 112m€ 3.2 (2021: 1,252) (2021: 7%) (2021: 197) (2021: 15.8%)
Slide 3: Solid underlying performance in both businesses in a challenging environment
FY 2022 Solid underlying performance in both businesses in a challenging environment We strengthened our position as one of the global leaders in K12 education The acquired Italian and German business had a positive earnings and cash flow contribution In Spain, solid net sales growth and perform
Slide 4: Learning: net sales grew driven by the acquisition in Italy
LEARNING FY 2022 Net sales grew driven by the acquisition in Italy and organic growth in learning content sales… Net sales grew to 681m€ (2021: 637) – The acquired Italian and German business made a 37m€ contribution to the net sales growth for September-December – Comparable net sales growth was
Slide 5: Learning: earnings were stable
LEARNING FY 2022 Operational EBIT excl. PPA …while earnings were stable m€ Operational EBIT excl. PPA was 132m€ (2021: 134) 22.2 % – The acquired Italian business had 5m€ positive impact 21.0 % 21.0 % on earnings as indicated at closing 19.8 % 19.5 % 19.4 % 18.5 % – Earnings in the learning conten
Slide 6: Media Finland: net sales remained stable
MEDIA FINLAND FY 2022 Net sales remained stable… Net sales amounted to 618m€ (2021: 615) – Total advertising sales declined Digital and radio advertising sales grew Print and TV advertising sales declined – Subscription sales were stable Digital subscription sales continued to grow while pri
Slide 7: Media Finland: earnings impacted by lower advertising sales and higher paper costs
MEDIA FINLAND FY 2022 Operational EBIT excl. PPA …earnings impacted by lower m€ advertising sales and higher paper costs 15.4 % 13.3 % Operational EBIT excl. PPA declined to 66m€ 12.5 % 24 11.7 % (2021: 74) 10.5 % 11.4 % 21 – Advertising sales declined, while sales of lower 19 19 18 margin events
Slide 8: Free cash flow was lower in 2022
Free cash flow was lower Free cash flow 2022 m€ in 2022 325 Free cash flow from the underlying business in 2022 significantly lower due to significant investments made Large positive contribution from the working capital of the Italian business due to – Timing of the acquisition near the end of
Slide 9: The Board proposes a reduced dividend of 0.37€
The Board proposes a Dividend per share € reduced dividend of 0.37€ The Board proposes a dividend of 0.37€ (2021: 0.54) per share to be paid for 2022 in order to balance capital use between dividend and continuing growth investments – Representing a total of approx. 60m€ – Pay-out of 93% of underl
Slide 10: In 2023, we continue building the long-term strengths of our businesses
In 2023, we continue building the long-term strengths of our businesses Expected 2023 Long-term targets Learning financial impact for SBUs unchanged Organic growth driven by the continued implementation of the new curriculum in Organic growth Organic growth Spain and Poland returning to growth
Slide 11: Outlook for 2023
Outlook for 2023 In 2023, Sanoma expects that the Group’s reported net sales will be 1.35‒1.4bn€ (2022: 1.3) The Group’s operational EBIT excluding PPA is expected to be 150‒180m€ (2022: 189) Regarding the operating environment Sanoma expects that: – The economies in the Group’s operating coun
Slide 12: 2030 growth ambition and long-term financial targets unchanged
2030 growth ambition and long-term financial targets unchanged We are aiming for the Group’s net sales to be over 2bn€ by 2030, with at least 75% coming from the learning business – Organic growth in-line with long-term targets in Learning and Media Finland – In Learning, focus on in-market acquis
Slide 13: Financials
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Slide 14: Operational EBIT improved while being seasonally negative
Q4 2022 Operational EBIT excl. PPA Q4 2022 vs. Q4 2021 Operational EBIT improved m€ while being seasonally negative Learning + Solid performance in most major learning content markets + In the Dutch distribution business, delayed -2.2 deliveries from Q3 ‒ Seasonally negative contribution of the acqu
Slide 15: Net debt and leverage increased with the acquisition in Italy and Germany
Net debt and leverage Net debt m€ increased with the acquisition in Italy and Germany Long-term 3.1 3.2 3.3 3.2 target < 3.0 Net debt / Adj. EBITDA was 3.2 (2021: 2.4), above the 2.8 long-term target of <3.0 2.6 2.6 Interest-bearing net debt totalled 823m€ (2021: 616) 2.5 2.4 Equity ratio was
Slide 16: The Italian business had a significant positive impact on free cash flow in 2022
The Italian business had a Free cash flow 2022 m€ significant positive impact on free cash flow in 2022 due to 325 timing of the acquisition… − Significantly lower underlying free cash flow due to − Lower EBITDA incl. transaction and integration costs of recent acquisitions − Higher investments in l
Slide 17: 2023 free cash flow expected to decline temporarily
… while 2023 free cash flow Free cash flow m€ expected to decline temporarily 200 Key items impacting the 2023 free cash flow 150 + Improved working capital – Lower EBITDA in Media Finland 100 – Integration project costs of the Italian business – Continued investments in business development 50 an
Slide 18: Financial reporting in 2023
Financial reporting in 2023 Financial Statements and Directors’ Report for 2022 week 10 AGM 2023 Wed 19 April Interim Report Q1 2023 Thu 4 May Half-Year Report 2023 Wed 26 July Interim Report Q3 2023 Thu 26 October 18 Full-Year Result 2022
Slide 19: Q&A
Q&A
Slide 20: Appendix
: Appendix
Slide 21: Sanoma in 2022
Sanoma in Learning Media Finland 2022 Net sales 681m€ Net sales 618m€ NET SALES Non-print 62% Non-print 52% 1,298m€ Margin 19.4% Margin 10.6% NON-PRINT SALES NET SALES, m€ NET SALES, m€ 57% Netherlands Subscription Spain Non-print advertising OPERATIONAL EBIT MARGIN Poland 14.6% Belgium Finland Prin
Slide 22: Group key figures Q4 2022
Group key figures Q4 2022 m€ Q4 2022 Q4 2021 Q4 2022 Q4 2021 Net sales 259.5 252.4 Average number of employees (FTE) 5,018 4,885 Operational EBITDA 45.3 42.1 Number of employees at the end of 5,079 4,822 margin 17.4% 16.7% the period (FTE) Operational EBIT excl. PPA -2.3 -5.2 margin -0.9% -2.1% EBIT
Slide 23: Group key figures FY 2022
Group key figures FY 2022 m€ 2022 2021 2022 2021 Net sales 1,298.3 1,251.6 Average number of employees (FTE) 5,018 4,885 Operational EBITDA 355.4 361.0 Number of employees at the end of 5,079 4,822 margin 27.4% 28.8% the period (FTE) Operational EBIT excl. PPA 189.3 197.2 margin 14.6% 15.8% EBIT 112
Slide 24: Learning: Quarterly key figures
Learning: Quarterly key figures m€ FY 22 FY 21 Q4 22 Q3 22 Q2 22 Q1 22 Q4 21 Q3 21 Q2 21 Q1 21 Net sales 681.0 637.3 101.6 360.3 149.8 69.3 88.5 331.6 149.0 68.2 Operational EBITDA 212.8 213.1 4.8 150.7 58.6 -1.3 3.0 144.9 66.0 -0.9 Operational EBIT excl. PPA 131.8 133.9 -18.9 129.4 41.0 -19.7 -20.6
Slide 25: Adjusted key figures of Pearson Italy and Germany
Adjusted key figures of Pearson Italy and Germany (preliminarily adjusted for IFRS and Sanoma accounting principles, unaudited) Quarterly figures m€ Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Net sales, total 31 11 18 58 29 12 Operational EBIT excl. PPA 6 -4 FY figures m€ FY 2021 FY 2020 Net sa
Slide 26: Media Finland: Quarterly key figures
Media Finland: Quarterly key figures m€ FY 22 FY 21 Q4 22 Q3 22 Q2 22 Q1 22 Q4 21 Q3 21 Q2 21 Q1 21 Net sales 618.1 615.3 158.0 154.8 163.7 141.6 164.1 154.8 154.1 142.2 Operational EBITDA 150.2 155.0 41.7 39.2 38.8 30.7 41.9 40.9 40.0 32.2 Operational EBIT excl. PPA 65.8 73.5 18.1 20.6 17.2 9.9 19.
Slide 27: Finnish advertising market development 1/2
Finnish advertising market development 1/2 Finnish measured media advertising markets FY 22 Q4 22 Q3 22 Q2 22 Q1 22 FY 21 Q4 21 Q3 21 Q2 21 Q1 21 Newspapers -7% -13% -7% -12% 0% 3% 2% 0% 36% -14% Magazines -11% -20% -5% -5% -14% -4% -5% -4% 11% -16% TV -3% -5% -4% -1% -2% 9% 0% 4% 43% -3% Radio 4% -
Slide 28: Finnish advertising market development 2/2
Finnish advertising market development 2/2 Share of media advertising groups and development in 2022 (change % vs 2021) Newspaper (-7%) 6% 13% Freesheets (-9%) 2% 4% Magazines (-9%) 1,328m€ TV (-3%) 17% Radio (+4%) 53% 5% Online incl. search and social media (+10%) Movies (+77%) Outdoor (+21%) Sourc
Slide 29: We have a well-balanced debt portfolio
We have a well-balanced debt portfolio External debt structure 1) Maturity profile 2023–2026 m€, 31 December 2022 m€, 31 December 2022 1,000 25 70 5 800 350 250 600 200 700m€ 1) 900 400 350 550 200 175 200 200 Term loan 2022 Term loan 2020 Bond 0 2023 2024 2025 2026 Commercial papers Other loans Com
Slide 30: Largest shareholders
Largest shareholders 31 December 2022 Largest shareholders Holding by sector Number of % of Shareholders shares shares 3% 1. Jane and Aatos Erkko Foundation 39,820,286 24.4 15% Antti Herlin 16% 2. 19,816,800 12.1 Holding Manutas Oy: 12.10%, personal: 0.02% 3. Langenskiöld Robin 12,273,371 7.5 4. Sep
Slide 31: Analyst coverage
Analyst coverage Carnegie Investment Bank Pia Rosqvist-Heinsalmi +358 9 6187 1232 Danske Markets Equities Sami Sarkamies +358 40 502 9194 Inderes Petri Gostowski +358 40 821 5982 Nordea Sanna Perälä +358 40 779 0845 OP Corporate Bank Kimmo Stenvall +358 10 252 4561 SEB Maria Wikström +358 9 6162 868
Slide 32: 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
Slide 33: 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