Houghton Mifflin Harcourt Company
Houghton Mifflin Harcourt — Merger or Acquisition (March 2021)
10 slides from Houghton Mifflin Harcourt's merger presentation, Mar 29, 2021
Slide 1: Divestiture of HMH Books & Media
Divestiture of HMH Books & Media March 29, 2021 Exhibit 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures This presentation and oral statements made in connection with this presentation contain certain statements that are not historical facts, including information regarding our intentions, beliefs or current expectations concerning, among other things, o
Slide 3: HMH Books & Media Divestiture Overview
3 HMH to divest HMH Books & Media to HarperCollins, a division of News Corp for $349 million in cash Transaction expected to close in 2Q 2021, after HSR review Divestiture creates pure-play K-12 learning technology company Accelerates growth momentum in digital sales, annual recurring revenue and fr
Slide 4: Digital First, Connected Strategy & Key Pillars
Digital First, Connected Strategy & 3 Key Pillars 2020 ARR1 was $58 million, or 6% of Education Billings2 Beginning in Q1 2021, we will disclose Net Retention Rate 2020 Education Adjusted Variable Costs 32% of Education Billings2 2020 Connected Sales1 were 50% of Education Billings2 Beginning in Q1
Slide 5: Divestiture Additional Detail
5 HMH Books & Media is focused on consumer publishing, including print and multi-channel delivery of leading general interest and young readers titles Outside of our core K-12 Digital First, Connected Strategy HMH Books & Media employees will join HarperCollins, a division of News Corp As part of th
Slide 6: Divestiture Financial Impact
6 HMH Books & Media generated billings1 of $192 million in 2020 Expect to use net proceeds of $337 million to pay down debt, further aligning capital structure with Digital First, Connected strategy Net of estimated transaction fees and expenses Adequate NOL carry forwards offset any potential taxab
Slide 7: Revised 2021 Outlook
Revised 2021 Outlook Annual Billings1 Unlevered FCF Margin2 Original Outlook Revised Outlook 7 1 An operating measure which we derive from net sales taking into account the change in deferred revenue. 2 Non-GAAP measure. Management is unable, without unreasonable efforts, to present a quantitative r
Slide 8: Questions & Answers
Questions & Answers Ave HMH
Slide 9: Billings
Billings1 9 1 An operating measure which we derive from net sales, taking into account the change in deferred revenue. Details may not sum to total due to rounding.
Slide 10: Operating Metrics
Operating Metrics 10 Annualized Recurring Revenue (ARR) for a given period is the annualized revenues derived from termed subscription contracts existing at the end of the period. ARR excludes contracts that are one-time in nature. ARR is currently one of the key performance metrics being used by ma
Houghton Mifflin Harcourt — Merger or Acquisition (March 2021) on 6ix