Sanoma:
An innovative and agile learning and media company
We impact the lives of millions of people every day
Rob Kolkman, President & CEO
Pörssi-ilta, Helsinki, 5 March 2024
We are a leading
European K12
learning company
and
#1 digital media
company in Finland
2 | Pörssi-ilta, Helsinki 5 March 2024 |
Sanoma at a glance
Net sales
FY 2023
57%
Learning 1,393m€
43%
Media
Finland
Operational EBIT excl.PPA
A leading European
K12 learning company
- Size doubled in the past five years resulting from M&A and organic growth
- Serving approx. 25 million students
- Leading positions in key markets
- Stable and resilient K12 market
- High barriers to entry
Net sales 795m€
Operational EBIT excl. PPA 148m€, corresponding to 18.7%
#1 digital media company in Finland
- Leading Finnish media brands in News & feature, Entertainment and B2B marketing solutions
- 900k subscriptions with paid for digital, out of 2.7m households in Finland
- Print advertising <10% of net sales
Net sales 598m€
Operational EBIT excl. PPA 40m€, corresponding to 6.7%
FY 2023
79%
Learning
175m€
Sanoma Group
Net debt / Adj. | Equity | Free cash | Free cash flow | Dividend per |
Margin 12.6%
21%
Media
Finland
EBITDA | ratio | flow | per share | share |
2.8 | 42.5% | 105m€ | 0.64€ | 0.37€ |
3 | Pörssi-ilta, Helsinki 5 March 2024 |
We are Finland's #1 digital media company reaching 97%
of all Finns every week
Strong portfolio of independent and complementing brands with substantial digital synergies
News & Feature | Entertainment |
(~2/3 of Media Finland net sales) | (~1/3 of Media Finland net sales) |
Large audiences to build reach for B2B
(<50% of Media Finland net sales)
Monetising B2C
subscriptions
(>50% of Media
Finland net sales)
Ad-funded journalism | Linear TV and Radio |
Free articles | Ad-fundedon-demand | We have strong | |
1 standalone | |||
brands … | |||
Paid subs | 1.4m | Paid subs | |
subscriptions |
2
… with further potential to combine digital subscription products
4 | Pörssi-ilta, Helsinki 5 March 2024 |
We are a leading European K12 learning company
- We focus on K12, which is primary, secondary and vocational education (ie. 6−18 year-olds)
- Teachers and schools are our primary customers, and we provide them with everything they need
- Teachers are key decision-makers on which learning content to use
- They typically change learning materials every 4−8 years
- In our operating countries, learning content is largely publicly funded and typically represents 1−3% of public education spend
- Our learning content has a positive impact on learning outcomes
Supporting about
25
million students
5 | Pörssi-ilta, Helsinki 5 March 2024 |
Different blended offerings reflect the different stages of our markets
Blended
learning is the
preferred
solution for
teachers
Different levels of blended learning | Digital |
Print book with | Print book with | Print and digital fully blended |
digital version | digital version and exercise platform | adding distinctly different parts |
of the learning experience |
Teacher materials on how to teach blended learning
6 | Pörssi-ilta, Helsinki 5 March 2024 |
Sanoma represents a unique sustainability profile
We have a unique sustainability profile…
Intrinsic positive impact of both business in the lives of millions of people every day combined with ambitious targets and solid ESG performance
… and ambitious climate targets
- Our emission reduction targets were validated by Science Based Targets initiative (SBTi) in November 2023
- SBTi targets by 2030
- Own operations absolute Scope 1 and 2 GHG emissions -42%
- Supply chain absolute Scope 3 GHG emissions -38%
- SBTi targets and developing inclusive learning solutions also linked into the pricing of our 300m€ RCF
Scope 3 categories included in the target are purchased goods and services, fuel and energy related activities, and upstream transportation and distribution, base year for all targets 2021
MSCI | Sustainalytics | |
AA | 10.9 | |
Scale 100-0, | ||
Scale CCC to AAA | lower score = lower risk | |
Upright | ISS | |
+75% | C+ | |
Scale limitless negative | Scale D to A+ | |
to +100% | ||
CDP Climate | S&P Global ESG | |
A- | 44 | |
Scale D- to A | Scale 0-100 | |
7 | Pörssi-ilta, Helsinki 5 March 2024 |
Solid position and clear path to meet our long-term financial targets
Increasing profitability
Improving cash flow generation
Strengthening the balance sheet
Long-term financial targets
Learning
Organic growth | 2−5% |
Operational EBIT | > 23% |
margin excl. PPA | (from 2026 onwards) |
Media Finland | |
Organic growth | +/- 2% |
Operational EBIT | 12−14% |
margin excl. PPA | |
Sanoma Group | |
Net debt / Adj. | < 3.0 |
EBITDA | |
Equity ratio | 35−45% |
Dividend policy | Increasing dividend, 40−60% |
of annual free cash flow * | |
8 Pörssi-ilta, Helsinki 5 March 2024
-
When proposing a dividend to the AGM, the Board of Directors will look at the general macro-economic environment, Sanoma's current and target capital structure,
Sanoma's future business plans and investment needs as well as both previous year's cash flows and expected future cash flows affecting capital structure.
Our purpose
Through learning
and media, we have a positive impact on the lives of millions of people every day
Key takeaways
-
Aiming for the Group's net sales to be over 2bn€ by 2030, with at least 75% coming from the learning business
- Continued focus on M&A in Learning - Learning achieving its long-term profitability target of 23% by 2026, supported by our increased scale
- Dividend continues to be an important part of our equity story, payout ratio 40−60% of free cash flow
9 | Pörssi-ilta, Helsinki 5 March 2024 |
Thank You!
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Sanoma Oyj published this content on 05 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 12:22:07 UTC.