Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Debt Investor Presentation (May 2025)
30 slides from Sanoma Oyj's debt investor presentation, May 2025
Slide 1: Unique sustainability profile with increasing profitability
Unique sustainability profile with increasing profitability Alex Green, CFO, Sanoma OP Bond Seminar, May 2025
Slide 2: 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 3: 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… 3 Credit investor presentation May 2025
Slide 4: Positive impact on the lives of millions of people every day
…and have a positive impact on the lives of millions of people every day Reaching Serving 96% 25million of all Finns students across every week Europe 4 Credit investor presentation May 2025
Slide 5: We have more than doubled Learning's net sales
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 2022 2025 M
Slide 6: Leading European K12 learning company and #1 digital cross-media company in Finland
We are a leading European K12 learning company and #1 digital cross-media company in Finland ▪ We are a leading European K12 learning company serving about 25 million students – Focusing on stable and resilient K12 market (i.e., 6−18-year-olds) with high barriers to entry #1 – Teachers and schools a
Slide 7: We support teachers to help all students reach their full potential
Learning We support teachers to help all students reach their full potential A leading ▪ We focus on K12, which is primary, secondary and vocational European K12 education (i.e., 6−18-year-olds) learning – Supporting about 25 million students in 12 European countries services company – Having a ~17%
Slide 8: 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 8 Credit investor present
Slide 9: Demand for learning content expected to grow from 2026
Learning Demand for learning content expected to grow in Learning our major operating countries from 2026 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 c
Slide 10: This is Sanoma Media Finland
Media Finland This is Sanoma Media Finland Trusted and interesting journalism, inspiring entertainment Entertainment News & Feature 96% weekly reach – 88% digital 1.4m subscriptions – 850,000 pay for digital 10 Credit investor presentation May 2025
Slide 11: Strong portfolio of independent and complementing brands
Media Finland Strong portfolio of independent and complementing brands with substantial commercial 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 Large audiences to build reach for B2B We have (<50%
Slide 12: Responsible use of AI in our businesses
Responsible use of AI in our businesses With human oversight following Driver for product innovation and productivity ethical principles, the use of AI can improve the way In Learning – to support our In Media Finland – to engage Internally – to improve we create, teach, teachers and students and su
Slide 13: Sanoma represents a unique sustainability profile
Sanoma represents a unique sustainability profile ISS Prime Sustainalytics We have a unique sustainability profile… Intrinsic positive impact of both business in the lives of millions of people every day combined with ambitious B- 11.3 Scale 100-0, targets and solid ESG performance Scale D to A+ low
Slide 14: Social Bond Framework linked to promoting access to education
Social Bond Framework linked to promoting access to education ▪ We provide access to essential education across our target population of about 25 million K12 students data Va y e imp lu h sitiv act e rt o of ▪ Our learning solutions P d o pe stw – support diversity, accessibility and differentiation
Slide 15: Continued progress towards our mid- and long-term targets
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 flow (10
Slide 16: We are taking actions to improve margins in both Learning and Media Finland
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, % Operational
Slide 17: We have a strong portfolio with high seasonality
We have a strong portfolio with high seasonality Seasonality between quarters is typical for K12 learning business Net sales, m€ 600 500 400 300 200 100 0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Learning Media Finland 17 Credit investor presentation May 2025
Slide 18: Continued free cash flow improvement
Continued free cash flow Free cash flow m€ improvement 200 ▪ Free cash flow improved to 145m€ (2023: 105) in FY 2024 and to -30m€ (2024: -44) in Q1 although 150 being negative according to its seasonal pattern ▪ Q1 improvement driven by 100 + Positive working capital development in Learning + Higher
Slide 19: Continued progress in deleveraging the balance sheet
Continued progress in Long- Net debt term m€ target deleveraging the balance sheet 3,2 2,8 <3.0 2,6 2,4 2,4 2,2 ▪ At the end of Q1 2025, net debt amounted to 617m€ and decreased year-on-year, although increased from Q4 2024 due to its seasonal pattern 661 616 823 640 569 617 – Net debt / Adj. EBITDA
Slide 20: We have a well-balanced debt portfolio
We have a well-balanced debt portfolio 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 50 150 2025 2026 2027 Term Loan 2022 Social Bond Term Loan 2022 RCF (fully unused) Term Loan 2023 Commercial papers Social Bo
Slide 21: 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 22: 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 23: 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 24: Thank You!
saqnomad Thank You!
Slide 25: 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
Slide 26: Long-term financial performance by SBU
Long-term financial performance by SBU Learning Media Finland 25% 700 20% 800 600 15% 20% 500 10% 600 15% 400 5% 10% 400 300 0% 5% 200 -5% 200 134 148 147 132 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 2023 2024
Slide 27: 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 28: Program Solar mostly completed
Program Solar mostly completed ▪ Program Solar initiatives were mostly completed by the end of Q1 2025 – On track to deliver the 55m€ efficiencies in 2026 – Supports reaching Learning’s long-term profitability target of 23% in 2026 – First impacts were visible in Q1 2025 in free cash flow and cost b
Slide 29: 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 30: Please contact us:
Please contact us: Kaisa Uurasmaa, Head of IR & Sustainability +358 40 560 5601 | kaisa.uurasmaa@sanoma.com Sirpa Louhevirta, SVP, Group Treasurer +358 50 303 8299 | sirpa.louhevirta@sanoma.com ir@sanoma.com | www.sanoma.com