Sanoma as an investment

Sanoma is a front running learning and media company impacting the lives of millions every day. We enable teachers to excel at developing the talents of every child, provide consumers with engaging content, and offer unique marketing solutions to business partners.

We have three strategic business units: Sanoma Learning, Sanoma Media Finland and Sanoma Media Netherlands. With operations in Finland, the Netherlands, Poland, Belgium, Sweden and Spain, our net sales totalled EUR 1.3 billion and we employed more than 4,400 professionals in 2018.

We aim for:

Read more about our long-term financial targets

We can achieve our aims as:

1. We have a more balanced business portfolio

> Higher share of more stable subscription and learning sales

> Lower exposure to more volatile advertising sales

2. We have a solid profitability and aim to improve our cash flow

> In the mid-term, we are targeting a cash conversion of 60-70% (2018: 55%)

> Outlook: In 2019, Sanoma expects that the Group’s comparable net sales will be in line with 2018 and operational EBIT margin excluding PPA will be above 15% (2018: 15.7%).

The outlook is based on an assumption of the consumer confidence and advertising market development in Finland and in the Netherlands to be in line with 2018.

3. Our leverage allows us acquisitions

> We aim to keep our leverage at the target level (net debt / adj. EBITDA < 2.5).

> We target mainly synergistic bolt-on acquisitions, organic growth initiatives and active portfolio management.

> We have flexibility to temporarily exceed the leverage target level if we identify a major transaction fitting our M&A strategy.

Opportunities across all three businesses

Learning
> Core business in current footprint markets
> Core business outside current footprint markets
> Adjacent business in current footprint markets

Media Finland
> Entertainment: Total TV strategy and live experiences
> News: Aiming for growth in B2C
> B2B: Growth in value-added services and supporting SME companies

Media Netherlands
> News and data
> Creating 360 media brands

4. We remain fully committed to our dividend policy

Dividend policy: Sanoma aims to pay an increasing dividend, equal to 40–60% of annual free cash flow.

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, future business plans and investment needs as well as both previous year’s cash flows and expected future cash flows affecting capital structure.