Sanoma (SAA1V) investor relations material

Strategic direction and growth outlook

• Targeting high single-digit adjusted operating profit growth for 2026–2030, primarily driven by K-12 learning expansion, curriculum renewals, and digital transformation, with Media Finland benefiting from digital subscriptions and a significant uplift from the gambling market opening in 2027.

• Updated financial targets include mid single-digit net sales growth and high single-digit adjusted operating profit growth in learning, and stable net sales with low single-digit profit growth in media, with a step change from gambling advertising.

• Emphasis on organic growth through curriculum renewal cycles, personalized and blended learning solutions, and disciplined M&A to expand in K-12 markets across Europe, supported by over €300 million in M&A headroom.

• Commitment to a strong balance sheet, with a net debt/EBITDA target below 2.5, and an unchanged dividend policy of 40–60% of annual free cash flow.

• Shift from previous numeric targets to more flexible growth and margin ambitions, reflecting market dynamics and acquisition opportunities.

Learning business: growth drivers and innovation

• Leading K-12 position in Europe, serving 25 million students, with high barriers to entry and strong relationships with teachers and governments.

• Organic growth fueled by curriculum renewal cycles in key markets (Spain, Poland, Netherlands), with 80% of 2025 net sales tied to these cycles.

• Expansion into adjacent areas and new business models, including digital and AI-powered tools for teachers, students, and parents, with AI teacher and student assistants launching in 2026.

• Personalized and blended learning methods are central, leveraging AI for adaptive content, efficiency, and improved outcomes, always with human oversight.

• M&A remains a priority for scaling, focusing on market-leading K-12 content and synergies in existing or new European markets.

Media Finland: digital transformation and new opportunities

• Digital subscriptions and advertising are the main growth engines, with over 50% of subscriptions now digital-only and strong direct digital reach.

• Print and linear TV remain resilient, but digitalization is paced with customer preferences to maintain high reach.

• AI is embedded across operations, driving productivity, content innovation, and customer value, with significant impact expected by 2030.

• Opening of the gambling market in 2027 is projected to add over €20 million in high-margin advertising revenue annually.

• Media Finland targets stable net sales and low single-digit profit growth, with a step-up from gambling and ongoing efficiency improvements.