Sanoma (SAA1V) Investor presentation summary

Strategic overview and growth drivers

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

• Growth strategy centers on curriculum renewal cycles, personalised learning via AI, and value-creating M&A.

• AI integration enhances both learning and media operations, driving innovation, efficiency, and customer value.

• Strong business fundamentals with resilient K12 funding, high barriers to entry, and opportunities for consolidation.

• Dividend policy targets 40-60% of annual free cash flow, with increasing payouts supported by robust cash generation.

Financial performance and outlook

• FY25 net sales €1,303m, adjusted operating profit €188m, and free cash flow €160m; non-print sales 51%.

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

• H1 2026: net sales €556m, adjusted operating profit €46m, with Learning segment growth offsetting Media Finland's advertising decline.

• Leverage peaked at 3.0x due to seasonality and acquisitions, expected to decline with H2 cash flow.

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

Learning segment highlights

• High single-digit organic earnings growth targeted for 2026–2030, leveraging curriculum renewals and AI-driven personalisation.

• Net sales in H1 2026 rose to €290m, with strong growth in the Netherlands, Poland, and from acquisitions.

• Over 60 new learning methods published and three acquisitions completed in 2026, expanding digital and AI capabilities.

• AI-powered Teacher and Student Assistants support differentiated, inclusive learning and teacher efficiency.

• Market consolidation and expansion into adjacent offerings are key M&A routes.