Sanoma (SAA1V) Investor presentation summary

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 strategy leverages curriculum renewal cycles, AI-driven personalised learning, and targeted M&A, including the acquisition of Vicens Vives in Spain.

• Media Finland benefits from digital transformation and the opening of the gambling market, expected to add €20m+ in annual advertising sales from 2027.

• High barriers to entry in K12 markets due to localisation and public spending support resilience.

• ESG leadership recognised with CDP Climate A List status and strong ratings across major indices.

Financial performance and outlook

• FY25 net sales €1,303m, adjusted operating profit €188m, and free cash flow €160m; net debt/EBITDA improved to 1.8.

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

• Dividend per share for 2025 set at €0.42, representing 43% of free cash flow, paid in three instalments.

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

• High single-digit organic earnings growth targeted for 2026–2030, with continued deleveraging and increasing dividends.

Operational highlights and innovation

• AI initiatives enhance learning personalisation, teacher support, and media content creation, boosting productivity and customer value.

• Learning content sales growth in the Netherlands, Poland, and Spain, supported by digital platforms and acquisitions.

• Media Finland's digital subscriptions offset declines in print and TV advertising; cost containment and efficiency improvements drive margin gains.

• Free cash flow improvement attributed to working capital, lower financing costs, and higher earnings.

• Refinancing activities improved debt maturity profile and reduced average interest rates.