Translation: Original published in Finnish on 11/25/2025 at 9:40 am EET.

Sanoma announced its updated financial targets for 2026-2030 in connection with its Capital Markets Day. Learning segment’s growth expectations increased and the drivers for Media Finland’s earnings growth became more precise. The company also tightened its leverage target. We will comment on the new strategy in more detail after the Capital Markets Day.

The new financial targets are a notch more ambitious

Sanoma's new financial targets are:

• In Learning, mid single-digit revenue growth (previously 2-5%).
• In Learning, high single-digit adjusted operating profit growth.
• In Media Finland, stable revenue development.
• In Media Finland, low single-digit adjusted operating profit growth.

The new financial targets reinforce our view that the Group's growth prospects have improved due to efficiency measures in recent years, a strengthened balance sheet, and structural drivers in the segments. The targets are more ambitious than before, especially for Learning, but we consider them realistic overall in relation to the growth base of the strategy period.

Growth expectations rose and segment-specific drivers were defined more precisely

Sanoma targets high single-digit adjusted EBIT growth at Group level in 2026–2030. This aligns with the strategic shift towards growth, which is well in line with our expectations, as Learning's efficiency programs are largely behind and the balance sheet enables more active M&A.

In Learning, the new mid-single-digit growth target exceeded the previous 2–5% level. According to the company, growth is especially supported by the curriculum reforms in Spain and Poland, as well as the utilization of AI in learning products. The company also reiterated its expectation that the divestment of the Dutch distribution business will raise the segment's adjusted EBIT margin to well over 23% in 2026, which will especially support the early part of the strategy period.

In Media Finland, the stable revenue target is largely in line with the previous one (+/– 2%), and the earnings growth target (low single-digit) was well in line with our expectations. The opening of the gambling market is expected to generate over 20 MEUR in annual revenue and a significant improvement in earnings from 2027 onwards.

Debt target tightened and dividend policy remained unchanged

Sanoma tightened its target for the net debt to adjusted EBITDA ratio to below 2.5x from the previous one (< 3.0x). In our opinion, this reflects the company's successful balance sheet strengthening in recent years. At the same time, the company abandoned its equity ratio target.

The dividend policy remained unchanged as expected, and the company aims for a growing dividend of 40-60% of free cash flow. However, Sanoma updated its definition of free cash flow from 2026 onwards to include lease liability payments. The change is technical and improves the descriptiveness of cash flow in terms of distributable funds, and thus does not affect the absolute dividend proposal.