Sanoma (SAA1V) AGM 2025 summary

Opening remarks and agenda

• CEO and business leaders reviewed 2024, emphasizing increased operational EBIT and strong free cash flow improvement, with a focus on both media and learning segments.

Financial performance review

• Revenue split: 57% from learning, with 76% of profitability from learning, reflecting a strategic shift.

• Operational EBIT margin excl. PPA improved to 13.4% (2023: 12.6%), with EBIT at €180m (2023: €175m).

• Group free cash flow rose to €145m (2023: €105m), driven by higher EBITDA and lower investments.

• Learning segment margin improved to 19.2% (2023: 18.7%), targeting 23% by 2026; Media Finland margin rose to 8.2% (2023: 6.7%).

• Net debt/EBITDA reduced to 2.2, below long-term target; equity ratio at 45.0% (2023: 42.5%); credit facility extended to 2027 and €150m social bond issued.

Board and executive committee updates

• CEO total compensation for 2024 was €1.3 million, with 54% fixed and 46% variable components.

• Long-term incentive structure updated to a three-year performance period with annual targets.

• Board proposes a dividend of €0.39 per share (2023: €0.37), to be paid in three instalments, representing a 44% payout of free cash flow.