Sanoma as an investment

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

We have three strategic business units: Sanoma Media Finland, Sanoma Media Netherlands, and Learning. With operations in Finland, the Netherlands, Poland, Belgium and Sweden, our net sales totalled EUR 1.4 billion and we employed more than 4,400 professionals in 2017.

We aim for:

Read more about our long-term financial targets

We can achieve our aims as:

1. We have completed our major portfolio changes and have a more balanced business portfolio

> Higher share of more stable subscription and learning sales: Subscription 27%, learning 24% of Group’s net sales in 2017

> Lower exposure to more volatile advertising sales: 26% of Group’s net sales in 2017

2. We continue to focus on our customers, profitability and cash flow

> Our profitability has improved in 2016-2017

> In the mid-term, we are targeting a cash conversion of 60-70% (2017: approx. 50%)

3. We increasingly focus on selective growth through M&A

> With our leverage at the target level (net debt / adj. EBITDA < 2.5), we estimate to have approx. EUR 300-400 million headroom for acquisitions

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

> In addition, we have flexibility to temporarily exceed the leverage target level if we identify a major transaction fitting our M&A criteria

Opportunities across all three businesses

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

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

Media Netherlands
> Topline growth by increasing value of advertising

4. We remain fully committed to our dividend policy

Dividend policy: Sanoma aims to pay an increasing dividend, equal to 40–60% of annual cash flow from operations, after capital expenditure.

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.