Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Non-Deal Roadshow (June 2025)
51 slides from Sanoma Oyj's roadshow presentation, June 2025
Slide 1: Unique sustainability profile with increasing profitability
Pictures to be changed Unique sustainability profile with increasing profitability Roadshow presentation May–June 2025
Slide 2: Sanoma at a glance
Sanoma A leading European K12 learning company #1 digital cross-media company in Finland at a glance ▪ Size doubled in the past five years ▪ Leading Finnish media brands in resulting from M&A and organic growth News & feature, Entertainment and Net sales ▪ Serving approx. 25 million students B2B mar
Slide 3: We are a leading European K12 learning service company
We are a leading European K12 learning service company ▪ We focus on K12, which is primary, secondary and vocational education (ie. 6−18 year-olds) – Supporting about 25 million students across Europe – Having a ~17% market share ▪ Teachers and schools are our primary customers – Teachers are key de
Slide 4: We are Finland's #1 digital media company with a weekly reach of 96%
We are Finland’s #1 digital media company with a weekly reach of 96% Strong portfolio of independent and complementing brands with substantial digital synergies News & Feature Entertainment (~2/3 of Media Finland net sales) (~1/3 of Media Finland net sales) Ad-funded journalism Linear TV and Radio L
Slide 5: Since 2018, we have more than doubled Learning's net sales
Since 2018, we have more than doubled Learning’s net sales, creating a leading European K12 learning business Pearson Italy Italy Group net sales Iddink ITS Learning the Netherlands, 9 countries Santillana Spain Pearson Germany development Spain m€ Belgium, Spain Germany ~800 Learning ~300 2019 2020
Slide 6: Three strategic focus areas to deliver increasing profitability
Three strategic focus areas to deliver increasing profitability and prepare for future growth Mid-term focus areas: 1. Increasing profitability of Learning and Media Finland ▪ In Learning, we benefit from our increased scale and will reach the long-term profitability target in 2026 through Program S
Slide 7: Actions to improve margins in both Learning and Media Finland
1. We are taking actions to improve margins in both Learning and Media Finland Learning’s profitability to reach the long-term Media Finland’s profitability to improve towards target of 23% in 2026 supported by Solar the target of 12−14% in the long-term Operational EBIT margin excl. PPA, % Operatio
Slide 8: Strong portfolio with organic growth opportunities
2. Strong portfolio with organic growth opportunities in both Learning and Media Finland Growing share of higher margin Accelerating growth in digital learning content business subscription and advertising sales Learning net sales 2024, m€ Media Finland net sales 2024, m€ 2−5%* +/-2%* 800 800 ▪ Grow
Slide 9: Deleveraging is central to our near-term capital allocation
3. Deleveraging is central to our near-term capital allocation In recent years, we have grown Short-term cash flow will be In 2024−2026 we focus Learning through M&A impacted by on deleveraging to build − Higher financing costs headroom for future growth − Costs related to Program Capital allocation
Slide 10: Dividend is an important part of our equity story
Dividend is an important part Dividend per share € of our equity story ▪ The Board resolved that a dividend of 0.39€ (2023: 0.37) per share will 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 fre
Slide 11: Sanoma represents a unique sustainability profile
Sanoma represents a unique sustainability profile Sustainalytics We have a unique sustainability profile… ISS Prime Intrinsic positive impact of both business in the lives of millions of people every day combined with ambitious B- 11.3 Scale 100-0, Scale D to A+ targets and solid ESG performance low
Slide 12: Responsible use of AI in Media and Learning
Responsible use of AI in Media and Learning With human Driver for product innovation and productivity oversight following ethical principles, the use of AI can improve the way In Learning – to support our In Media – to engage and Internally – to improve we create, teach, teachers and students suppor
Slide 13: We continue with our ambitious strategy for sustainable long-term growth
Sanoma as an investment: 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 ▪ Me
Slide 14: Our learning business
Our learning business
Slide 15: K12 learning services offer attractive opportunities
Learning K12 learning services offer attractive opportunities… K12 is stable and predictable We are #1 in K12 learning services in business Europe and see benefits from scale ▪ Stable population of approx. 75 million ▪ Harmonising our digital platforms and students in Europe, corresponding to a K12
Slide 16: Learning content sales vary driven by curriculum renewals
Learning …while learning content sales vary driven by Learning curriculum renewals in our 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 fun
Slide 17: We offer high-quality blended learning content
Learning We offer high-quality blended learning content Case: Primary math learning method by Sanoma Learning Nordics Teacher introduces the topic, Learn and practice the basics classroom learning Independent practice and homework Personalised and gamified digital exercises 17 Roadshow presentation
Slide 18: Different blended offerings reflect the different stages of our markets
Learning Blended Different blended offerings reflect the different learning is the stages of our markets… preferred solution for teachers Print Different levels of blended learning Digital Print book with Print book with Print and digital fully blended digital version digital version and exercise pl
Slide 19: Leading the way with our blended offering across all markets
…and with our blended offering, we are leading the way in across all our markets Stage Print Free digital Paid digital Subscription digital Digital Model Print only Free digital Paid digital Subscription digital Markets Poland Finland Netherlands Italy Belgium ~65% Spain Sweden of learning material
Slide 20: Reaching long-term profitability target of 23% in 2026 with Program Solar
Learning We aim to reach our long-term profitability target of 23% in 2026 supported by Program Solar ▪ Solar brings full benefits from the increased scale of the business Realised Program Solar benefits are ▪ Program Solar initiatives were mostly completed by the end of Q1 2025 split between progra
Slide 21: Key market features in our major learning content countries
Key market features in our major learning content countries (as of 2024) Annual spend per Sanoma market K12 student Public spend on Level of digitalisation Funding student Total annual spend position in learning population K12 as % of GDP mechanism primary/secondary content ▪ Primary via public subs
Slide 22: Our media business
Our media business
Slide 23: Increasing the value of digital for our customers
Media Finland We are increasing the value of digital for our customers to prepare for digital-only future Up to 2023 In 2024−2026 Digital transformation push Increasing value of digital for our customers Subscriptions ▪ Strong digital portfolio of independent and complementary We reach 96% brands wi
Slide 24: News media subscription base has become highly digitalised
Media Finland News & Feature News media subscription Digital subscription base in news media has grown by 20pp in last 5 years base has become highly thousands of subscriptions, annual avg. 600k digitalised +1% p.a. ~2% Print ~25% 98% ▪ 98% of news media subscribers pay for a digital component 47% ▪
Slide 25: Transformation away from 7-day hybrid improves B2C contribution
Media Finland News & Feature Transformation away from 7-day hybrid B2C contribution of Helsingin Sanomat (HS) subscription types improves B2C contribution ▪ Currently price paid by customer contributes relatively similar irrespective of the product – Customer pays for the printing and logistics cost
Slide 26: Advertising market is expected to gradually recover
Media Finland B2B Advertising market is expected to gradually recover Ad market continues to be uncertain… …but our long-term advertising sales outlook is stable Domestic measurable media market by segment, m€ ▪ Digital advertising sales Media Finland B2B 1 200 CAGR approx. compensating for the sale
Slide 27: Financials FY 2024 & Q1 2025
Financials FY 2024 & Q1 2025
Slide 28: Continued progress towards our mid- and long-term targets
FY 2024 Continued progress towards our mid- and long-term targets Operational EBIT margin excl. PPA 2024 Target Increasing profitability of Learning 19.2% > 23% (18.7%) from 2026 onwards Learning and Media Finland Media 8.2% 12−14% Finland (6.7%) Improving cash flow Group free 145m€ generation cash
Slide 29: Learning Q1 2025: net sales grew and operational earnings improved
LEARNING Q1 2025 Operational EBIT excl. PPA Net sales grew and operational m€ earnings improved ▪ Net sales increased to 89m€ (2024: 81) in a seasonally small quarter 19,4 % 19,6 % – Growth in learning content sales in the 19,3 % 19,1 % 19,2 % Netherlands, partially driven by earlier ordering 155 –
Slide 30: Media Finland Q1 2025: stable operational earnings
MEDIA FINLAND Q1 2025 Operational EBIT excl. PPA Stable operational earnings m€ ▪ Net sales amounted to 132m€ (2024: 140) – Advertising sales decreased 12,2 % ▪ TV, print and radio decreased incl. the impact of ending the reselling of certain third-party TV channel advertising in the beginning of 20
Slide 31: The Board decided on a dividend of 0.39€ per share
The Board decided on Dividend per share € a dividend of 0.39€ per share ▪ The Board resolved a dividend of 0.39€ (2023: 0.37) per share will 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 ca
Slide 32: Income statement items relatively stable
Income statement items Key income statement related items Q1 2025 relatively stable ▪ IACs were -4m€ (2024: 2) and consisted mainly of m€ Q1 2025 Q1 2024 strategic development costs Operational EBIT excl. PPA -18.8 -23.7 – 1m€ of costs related to Solar IACs -3.7 1.5 PPAs -8.8 -9.2 – Q1 2024 included
Slide 33: Strong free cash flow improvement
Strong free cash flow Free cash flow m€ improvement 200 ▪ Free cash flow improved to -30m€ (2024: -44) + Positive working capital development in Learning 150 + Higher operational earnings in Learning + Lower financial items 100 ‒ Higher investments in TV programs 50 ➢ Full-year free cash flow expect
Slide 34: Continued progress in deleveraging the balance sheet
Continued progress in Net debt m€ deleveraging the balance sheet 3,2 3,3 Long-term ▪ Net debt and leverage significantly lower vs. target 2,9 2,9 <3.0 2,8 2,8 previous year – Net debt / Adj. EBITDA improved to 2.4 2,4 2,4 (2024: 2.9), below the long-term target of < 3.0 2,2 ▪ Equity ratio at 42.7% (
Slide 35: Refinancing improved the maturity of external debt
Refinancing improved the Maturity profile of external debt m€, 31 March 2025 maturity of external debt ▪ Maturity of the 300m€ RCF extended to November 2027 with the 2nd and final extension option 100 ▪ 150m€ Social Bond with a maturity of 3 years issued in September 2024 150 – Funds used to finance
Slide 36: 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
Slide 37: 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
Slide 38: 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 ▪ Meeting leverage and equity
Slide 39: Appendix
Appendix
Slide 40: We are a leading European K12 learning company & #1 digital cross-media company in Finland
We are a leading European K12 learning company & #1 digital cross- media company in Finland… 40 Roadshow presentation May-June 2025
Slide 41: 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 13.4% Non-print advertising Poland Italy Print advertisi
Slide 42: 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
Slide 43: Good progress towards the Group's 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%) Employee Experience Reduction in Reduction
Slide 44: Good progress among the key sustainability themes
Good progress among the key sustainability themes 84% of teachers say that 53 media brands with an The Employee Experience -44% reduction in own Sanoma’s materials support increasingly important role Index remained on a good level operations GHG emissions* in reaching curriculum in promoting indepen
Slide 45: Finnish advertising market development 1/2
Finnish advertising market development 1/2 Finnish measured media advertising markets Q1 25 Q4 24 Q3 24 Q2 24 Q1 24 Newspapers -12% -16% -17% -17% -20% Magazines -19% -10% -12% -9% -12% TV -4% -2% 3% 2% 3% Radio -3% -3% -5% 3% -4% Online (excl. search and social media) -2% -2% 3% 4% -2% Total market
Slide 46: 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
Slide 47: Group debt portfolio, March 2025
Group debt portfolio, March 2025 External debt structure 1) Maturity profile of external debt m€, 31 March 2025 m€, 31 March 2025 85 100 169 150 100 503m€ 1) 32 269 119 50 2025 2026 2027 150 Term Loan 2022 RCF (fully unused) Term Loan 2022 Social Bond Social Bond Term Loan 2023 Term Loan 2023 Commer
Slide 48: Largest shareholders
Largest shareholders 31 March 2025, source: Euroclear 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 7,654,746
Slide 49: Analyst coverage
Analyst coverage Carnegie Investment Bank Pia Rosqvist-Heinsalmi +358 9 6187 1232 Danske Bank Markets 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 Harjama +
Slide 50: 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 51: 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