Sanoma (SAA1V) investor relations material

Strategic positioning and growth drivers

• Leading European K12 learning content provider, serving 25 million students and reaching 96% of Finns weekly through Media Finland.

• Growth powered by curriculum renewal cycles, digital transformation, and AI-driven personalized learning.

• Clear M&A strategy with recent acquisitions in Spain (Vicens Vives) and Poland (Fluentbe) to strengthen market positions.

• Media Finland benefits from digital subscription growth and new opportunities from the gambling market opening in 2027.

• Unique sustainability profile with strong ESG ratings and science-based climate targets.

Financial performance and outlook

• FY 2025 net sales €1,303m, adjusted operating profit €188m, margin 14.4%, and free cash flow €160m.

• Learning segment: net sales €746m, margin 20.4%; Media Finland: net sales €557m, margin 8.8%.

• Dividend per share €0.42, representing 43% of free cash flow, with a policy of 40-60% payout.

• Net debt/EBITDA improved to 1.8x, with continued deleveraging and refinancing extending debt maturities.

• 2026 outlook: net sales €1.29–1.34bn, adjusted operating profit €205–225m, driven by curriculum renewals and stable Finnish advertising market.

Operational highlights and initiatives

• AI integration enhances learning personalization, teacher support, and content creation across both segments.

• Over 60 new learning methods published in H1 2026; strong digital platform growth in Poland and the Netherlands.

• Media Finland's digital transformation continues, with 50% of subscriptions digital-only and 80% direct traffic.

• Cost containment and efficiency improvements offset lower advertising sales in Media Finland.

• Free cash flow seasonally negative in H1 due to investments and acquisitions, but full-year growth expected.