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Sanoma publishes pro forma financial information including the acquisition of Santillana Spain

Sanoma Corporation, Stock Exchange Release, 8 March 2021 at 10:35 EET

Sanoma publishes pro forma financial information including the acquisition of Santillana Spain

Sanoma has today announced that it considers issuance of a new bond, proceeds of which would be used to repay the EUR 200 million bridge loan facility used in financing the acquisition of Santillana Spain. Related to the possible bond issuance, Sanoma discloses the following unaudited pro forma financial information of 2020. The information is presented to illustrate only the effect of the acquisition of Santillana Spain on Sanoma’s financials, and it does not take into account the impact of other acquisitions or divestments.

UNAUDITED PRO FORMA FINANCIAL INFORMATION

Basis of Compilation

Introduction

The following unaudited pro forma combined financial information (the "Pro Forma Information") is presented for illustrative purposes only to give effect to the acquisition of Santillana Spain, part of Santillana Group, the learning business division of Promotora de Informaciones S.A. ("Grupo Prisa") (the "Santillana Acquisition") and the financing of the Santillana Acquisition on Sanoma’s income statement information as if the acquisition and related financing had occurred on 1 January 2020.

The Pro Forma Information has been compiled in accordance with Annex 20 to the Commission Delegated Regulation (EU) 2019/980 and on a basis consistent with the accounting policies applied by Sanoma in its consolidated financial statements prepared in accordance with IFRS as adopted by the EU.

The Pro Forma Information illustrates the impact of the acquisition and the financing for the acquisition as if the acquisition and related financing had been undertaken at an earlier date. The Pro Forma Information addresses a hypothetical situation and is not therefore necessarily indicative of what Sanoma’s results would actually have been had the acquisition been completed on 1 January 2020 and does not purport to project the operating results of Sanoma as of any future date.

The Pro Forma Information reflects adjustments to Sanoma’s historical financial information to give pro forma effect to events that are directly attributable to the Santillana Acquisition and to the financing of the acquisition and are factually supportable. The pro forma adjustments include certain assumptions, described in the accompanying notes below, that the management believes are reasonable under the circumstances. Actual results of Santillana Spain and the related financing costs in the future may materially differ from the assumptions used in the Pro Forma Information. Further, the Pro Forma Information does not reflect any cost savings, synergy benefits, impacts on any refinancing or future integration costs that are expected to be generated or may be incurred as a result of the acquisition.

Acquisition of Santillana Spain and Acquisition Financing

Sanoma completed the acquisition of Santillana Spain, a leading Spanish provider of K12 learning materials, from Grupo Prisa on 31 December 2020, and accordingly, has consolidated Santillana Spain’s assets and liabilities to its year‑end audited consolidated balance sheet. The acquisition accounting for Santillana Spain disclosed in the notes to Sanoma’s audited 2020 consolidated financial statements is provisional. As Santillana Spain has been consolidated to Sanoma’s balance sheet as at 31 December 2020 and the consolidated balance sheet also includes the impact from the acquisition financing, no pro forma balance sheet is presented in the Pro Forma Information.

The final cash purchase price of Santillana Spain was EUR 409 million. Sanoma has financed the acquisition through two debt facilities: a syndicated three-year term loan of EUR 200 million with a group of ten relationship banks signed on 3 December 2020, with a one year extension option, and the EUR 200 million bridge loan facility. The remaining purchase price was paid from Sanoma’s cash and cash equivalents. Sanoma expects to convert the bridge loan facility into long‑term funding through the contemplated issuance of notes.

Sanoma has recorded a total of EUR 5 million of transaction costs incurred in connection with the Santillana Acquisition which are included within other operating expenses in the 2020 audited consolidated income statement.

Other 2020 Acquisitions

Sanoma has executed the following acquisitions during the year 2020 that have affected Sanoma’s results of operations since the date of the acquisitions in addition to the Santillana Acquisition. The pro forma income statement presented herein does not reflect the pro forma effect for the other 2020 acquisitions described herein.

On 30 April 2020, Sanoma completed the acquisition of Alma Media’s regional news media business. The final purchase price was EUR 79 million, and the net sales of the acquired business included in Sanoma’s consolidated income statement since acquisition from 1 May 2020 were approximately EUR 53 million and result for the period was approximately EUR 3 million. On 1 December 2020, Sanoma acquired media sales operations of Four Partners for a total purchase price of EUR 0.7 million with an immaterial impact to the year ended 31 December 2020 results or financial position.

Sanoma’s net sales would have totalled approximately EUR 1,196 million and result for the period approximately EUR 256 million, if the acquisitions of Santillana Spain, Alma Media’s regional news business and Four Partners had taken place on 1 January 2020.

See note 27 to Sanoma’s audited consolidated financial statements as at and for the year ended 31 December 2020 for more information on the 2020 acquisitions.

Historical Financial Information

The historical financial information in the Pro Forma Information has been derived from Sanoma’s audited consolidated financial statements as at and for the financial year ended 31 December 2020 and Santillana Spain’s unaudited carve-out income statement for the year ended 31 December 2020, based on the consolidated trial balances of the acquired entities prepared in accordance with Spanish GAAP adjusted with certain reclassifications between income statement line items.

Other Considerations

All amounts in the Pro Forma Information are presented in millions of euros, unless otherwise indicated. All figures have been rounded and consequently, the sum of individual figures can deviate from the sum figure presented for a row or column.

Unaudited Pro Forma Income Statement for the Year Ended 31 December 2020

 For the year ended 31 December 2020
 Sanoma historicalSantillana Spain carve-out IFRSSantillana Acquisition and FinancingSanoma
pro forma
 (audited)(note 1)(note 2)(unaudited)
 (EUR in millions, unless otherwise indicated)
Net sales........................................................................................................................................................................1,061.7105.51,167.2
Other operating income..................................................................................................................................................207.50.8208.3
Materials and services....................................................................................................................................................(356.5)(15.6)(5.3)(377.4)
Employee benefit expenses............................................................................................................................................(294.9)(32.9)(327.8)
Other operating expenses...............................................................................................................................................(171.9)(20.1)(192.0)
Share of results in joint ventures....................................................................................................................................0.50.5
Depreciation, amortisation and impairment losses.........................................................................................................  (176.3)   (8.5)(10.6)  (195.4)
EBIT..............................................................................................................................................................................270.129.2(15.9)283.4
Share of results in associated companies.......................................................................................................................(0.4)(0.4)
Financial income............................................................................................................................................................6.93.210.1
Financial expenses.........................................................................................................................................................    (15.7)   (3.9)  (4.9)    (24.5)
Result before taxes........................................................................................................................................................261.028.5(20.8)268.7
Income taxes..................................................................................................................................................................    (23.2)   (1.4)   5.0    (19.6)
Result for the period from continuing operations........................................................................................................   237.8  27.1(15.9)   249.1
     
Discontinued operations    
Result for the period from discontinued operations.......................................................................................................       9.3       –      –       9.3
Result for the period.....................................................................................................................................................   247.1  27.1(15.9)   258.4
     
Result from continuing operations attributable to:    
Equity holders of the Parent Company...........................................................................................................................237.427.1(15.9)248.7
Non-controlling interests................................................................................................................................................0.40.4
     
Result from discontinued operations attributable to:    
Equity holders of the Parent Company...........................................................................................................................9.39.3
Non-controlling interests................................................................................................................................................0.10.1
     
Result attributable to:    
Equity holders of the Parent Company...........................................................................................................................246.727.1(15.9)257.9
Non-controlling interests................................................................................................................................................0.50.5
     
Earnings per share for result attributable to the equity holders of the Parent Company:    
Earnings per share, EUR, continuing operations............................................................................................................1.46  1.53
Diluted earnings per share, EUR, continuing operations.................................................................................................1.45  1.52
     
Earnings per share, EUR, discontinued operations.........................................................................................................0.06  0.06
Diluted earnings per share, EUR, discontinued operations.............................................................................................0.06  0.06
     
Earnings per share, EUR................................................................................................................................................1.51  1.58
Diluted earnings per share, EUR....................................................................................................................................1.51  1.58

Refer to the accompanying notes to the Pro Forma Information

Notes to the Pro Forma Information

Note 1 – Santillana Spain Carve-out IFRS

Sanoma acquired Santillana Spain on 31 December 2020. Santillana Spain is a carve-out entity comprised of eight legal entities. The historical carve-out income statement for Santillana Spain for the year ended 31 December 2020, has been derived from the consolidated trial balances of the acquired entities prepared in accordance with Spanish GAAP. The historical Spanish GAAP carve-out income statement line items have been reclassified to conform to Sanoma’s income statement presentation in connection with the preparation of the historical carve-out income statement information. Santillana Spain net sales for the year ended 31 December 2020, are fully attributable to Spain.

The following table sets forth the pro forma adjustments to Santillana Spain carve-out income statement information:

 For the year ended 31 December 2020
 Santillana Spain carve-out Spanish GAAP reclassifiedIFRS accounting policy alignmentsElimination
of internal transactions
Santillana Spain carve-out IFRS
 (unaudited)  (unaudited)
  (note 1a)(note 1b)(note 1)
 (EUR in millions)
Net sales........................................................................................................................................................................106.6(0.8)(0.3)105.5
Other operating income..................................................................................................................................................0.80.8
Materials and services....................................................................................................................................................(16.5)0.50.3(15.6)
Employee benefit expenses............................................................................................................................................(32.9)(32.9)
Other operating expenses...............................................................................................................................................(21.8)1.7(20.1)
Share of results in joint ventures....................................................................................................................................
Depreciation, amortisation and impairment losses.........................................................................................................   (6.8)(1.7)    –   (8.5)
EBIT..............................................................................................................................................................................29.5(0.3)29.2
Financial income............................................................................................................................................................3.23.2
Financial expenses.........................................................................................................................................................   (3.7)(0.2)    –   (3.9)
Result before taxes........................................................................................................................................................29.0(0.5)28.5
Income taxes..................................................................................................................................................................   (1.5) 0.1    –   (1.4)
Result for the period from continuing operations........................................................................................................  27.5(0.4)    –  27.1

Note 1a – IFRS Accounting Policy Alignments

Sanoma has performed a preliminary analysis of accounting policies applied by Santillana Spain in its carve-out income statement information prepared in accordance with Spanish GAAP in order to determine whether adjustments are necessary to align with the IFRS accounting policies applied by Sanoma.

Sanoma has identified the following accounting policy differences that have been adjusted in the Pro Forma Information, and based on the information available at this time, management is not aware of other accounting policy differences that could have a material impact on the Pro Forma Information. Sanoma will continue to conduct a detailed review of Santillana Spain’s accounting policies.

●             "IFRS 16 – Leases": Santillana Spain’s lease contracts mainly comprise premises, vehicles and office equipment. In accordance with the Spanish GAAP, only financial leases with a purchase option are recognised in the statement of financial position, and operational leases are expensed. Sanoma applies "IFRS 16 – Leases" which requires lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. To align with Sanoma’s accounting policies, an adjustment of EUR 1.9 million was made to decrease other operating expenses, an adjustment of EUR 1.7 million to increase depreciation, amortisation and impairment losses and an adjustment of EUR 0.2 million was made to increase financial expenses for income statement presentation purposes. Sanoma has recognised right-of-use assets and lease liabilities, respectively, in the acquisition balance sheet consolidated as at 31 December 2020.

●             "IFRS 9 – Financial Instruments": Calculation of Santillana Spain’s expected credit losses have been aligned with Sanoma’s accounting policy. This adjustment increased other operating expenses by EUR 0.1 million.

●             "IFRS 15 – Revenue from Contracts with Customers": Santillana Spain’s revenue recognition has been aligned with Sanoma’s accounting policies. Sanoma identified preliminary differences regarding revenue recognition principles as described below decreasing net sales by EUR 0.8 million, decreasing materials and services expenses by EUR 0.5 million and increasing other operating expenses by EUR 0.1 million.

●             Sales with a right of return: Sanoma considers that if books or other materials are sold with right of return, Sanoma recognises revenue only to extent it is entitled based on the expected level of returns. Sanoma recognises a refund liability to an amount to which Sanoma does not expect to be entitled and reduces the revenue for the same amount. Sanoma also recognises an asset for the right to recover products from customers. Sanoma updates the measurement of the refund liability at each reporting date for change in expectations about the amount of the refunds. Santillana Spain has recognised a provision for returns however the accounting principles differs from the Sanoma’s accounting policy and was based on the gross margin of the sold books estimated to be returned. When calculating the IFRS adjustments the gross margin-based provision was reversed, and refund liability and an asset recognised in accordance with the Sanoma accounting policy.

●             Digital services: Santillana Spain provides online services via a digital platform. These digital services include full content in digital format and teachers can interact with students through the platform. Service includes a distinct license with a term that is equal with the school year (ending in June). Santillana Spain has recognised the revenue from these licenses when a license is sold. In accordance with Sanoma’s accounting policy, when access is granted to online learning platforms, revenue is recognised over the period that the customer has access to the online platform. Therefore, the revenue generated from the online platforms license are deferred and recognised over the license period.

Income tax impact from accounting policy adjustments has been calculated with the enacted Spanish tax rate of 25 per cent.

Note 1b – Elimination of Internal Transactions

The transactions incurred between Sanoma and Santillana Spain have been eliminated in the Pro Forma Information.

Note 2 – Santillana Acquisition and Financing

The Santillana Acquisition is accounted for as a business combination at consolidation using the acquisition method of accounting under the provision of "IFRS 3 – Business Combinations". Applying the acquisition method of accounting, Sanoma has recognised the identifiable assets acquired and liabilities assumed at their fair values as of the acquisition date, with the excess of the purchase consideration over the fair value of Santillana Spain’s net assets acquired recognised as goodwill. The accounting for the acquisition in Sanoma’s 31 December 2020 consolidated balance sheet is provisional.

The following table sets forth the provisional fair values of the acquired net assets of Santillana Spain on the acquisition date 31 December 2020:

 As at 31 December 2020 
 Acquired assets and assumed liabilities at fair value
 (EUR in millions)
Property, plant and equipment...........................................................................................................................................1.0
Right-of-use assets............................................................................................................................................................5.6
Customer relationships...................................................................................................................................................154.1
Trademarks....................................................................................................................................................................55.9
Others.............................................................................................................................................................................11.5
Intangible assets................................................................................................................................................................221.5
Other non-current assets...................................................................................................................................................4.3
Inventories........................................................................................................................................................................18.1
Other current assets...........................................................................................................................................................21.4
Assets, total.........................................................................................................................................................................271.8
Non-current liabilities........................................................................................................................................................(67.3)
Current liabilities...............................................................................................................................................................(25.9)
Liabilities, total...................................................................................................................................................................(93.2)
Fair value of acquired net assets..........................................................................................................................................178.7
  
Acquisition cost...................................................................................................................................................................408.7
Fair value of acquired net assets .........................................................................................................................................(178.7)
Goodwill from the acquisition............................................................................................................................................230.1

The final purchase price of EUR 409 million has been allocated to the acquired net assets including fair valued intangible assets comprising of customer relationships and trademarks and inventories with the remaining residual accounted for as goodwill. The goodwill is attributable mainly to the skills of Santillana Spain’s workforce and the synergies expected to be achieved from integrating the company into the Sanoma Learning business. The Santillana Acquisition has been estimated to create annual net synergies of approximately EUR 4 million, expected to be realised during 2022. 

Sanoma has financed the acquisition through two debt facilities: a syndicated three-year term loan of EUR 200 million with a group of ten relationship banks signed on 3 December 2020, with a one year extension option, and the EUR 200 million bridge loan facility provided by Nordea Bank Abp and OP Corporate Bank plc. The remaining purchase price was paid from Sanoma’s cash and cash equivalents. Sanoma expects to convert the Bridge Loan Facility into long-term funding through the contemplated issuance of notes.

The following table sets forth the unaudited pro forma adjustments for the Santillana Acquisition and acquisition financing in the pro forma income statement for the year ended 31 December 2020:

 Fair valuation of net assetsFinancing 
 Additional amortisation of intangible assets Inventory fair value adjustment Interest expenses from bridge loan Interest expenses from syndicated term loan Santillana Acquisition and Financing
 (note 2a)(note 2b)(note 2c)(note 2d)(note 2)
 (EUR in millions)
Materials and services....................................................................................................................................................(5.3)(5.3)
Depreciation, amortisation and impairment losses.........................................................................................................(10.6) –(10.6)
EBIT..............................................................................................................................................................................(10.6)(5.3)(15.9)
Financial expenses.........................................................................................................................................................(1.9)(3.0)(4.9)
Result before taxes........................................................................................................................................................(10.6)(5.3)(1.9) (3.0)(20.8)
Income taxes (note 2e)...................................................................................................................................................2.61.30.40.65.0
Result for the period from continuing operations........................................................................................................(7.9)(4.0)(1.5)(2.4)(15.9)

Note 2a – Additional Amortisation of Intangible Assets

The provisional fair values of customer relationships and trademarks have been determined primarily through the use of income approach which requires an estimate or forecast of expected future cash flows. Either multi-period excess earnings method or the relief-from-royalty method has been used as the income-based valuation method. For other intangible assets comprising prototypes, software and copyright, their carrying value was assumed to approximate their fair value.

The following table sets forth the provisional fair values for customer relationships and trademarks and the estimated average useful lives representing the amortisation periods as well as the estimated amortisation arising from fair value adjustments for the year ended 31 December 2020:

 For the year ended 31 December 2020
 Fair value of the acquired intangiblesEstimated average useful life Amortisation expense
 (EUR in millions)(years)(EUR in millions)
Customer relationships..................................................................................................................................................154.120(7.7)
Trademarks...................................................................................................................................................................  55.910–20  (2.9)
Total.............................................................................................................................................................................210.0 (10.6)
    

The amortisation of acquired intangible assets will have a continuing impact on Sanoma’s results.

Note 2b – Inventory Fair Value Adjustment

The inventory fair value adjustment reflects the additional expense arising from the fair valuation of acquired inventories. Sanoma expects that the acquired inventories will turn over within 15 months and accordingly, an adjustment reflecting the expense for the first 12 months has been recorded in the pro forma income statement for the year ended 31 December 2020.

The inventory fair valuation adjustment will not have a continuing impact on Sanoma’s results after the 15 months turnover.

Note 2c – Interest Expenses from Bridge Loan

In the Pro Forma Information, the interest expenses arising from the bridge loan facility are adjusted for the year ended 31 December 2020, as if the bridge loan facility of EUR 200 million had been drawn on 1 January 2020 to finance the acquisition on that date. Subsequently, Sanoma expects to convert the Bridge Loan Facility into long-term funding through the contemplated issuance of notes and accordingly, interest expense from bridge financing is expected to be replaced with the cost of long-term funding.

Note 2d – Interest Expenses from Syndicated Term Loan

The interest expenses arising from the EUR 200 million syndicated term loan are adjusted in the pro forma income statement for the year ended 31 December 2020 to illustrate the impact to Sanoma’s financial expenses as if the loan had been drawn on 1 January 2020 to finance the acquisition on that date. The interest expense adjustment has been calculated with the effective interest rate method, the effective interest rate for pro forma purposes being 1.5 per cent. The interest expense adjustment will have a continuing impact on Sanoma’s results over the loan maturity period of 3 years.

Note 2e – Income Taxes

The income tax impacts from the pro forma adjustments arising from the fair valuation of net assets are calculated based on the enacted Spanish tax rate of 25 per cent. The income tax impacts from the pro forma adjustments related to the acquisition financing are calculated based on the enacted Finnish corporate income tax rate of 20 per cent. The effective tax rate of Sanoma could be significantly different depending on the post-acquisition activities, including cash need, geographical mix of net income and tax planning strategies.

Note 3 – Pro Forma Earnings per Share

Pro forma basic and diluted earnings per share are calculated by dividing the pro forma result for the period attributable to the equity holders of the Parent Company by Sanoma’s historical weighted average number of shares on the market and historical diluted average number of shares, respectively.

The following table sets forth the pro forma basic and diluted earnings per share for the year ended 31 December 2020:

 For the year ended 31 December 2020
 (unaudited)
Pro forma result for the period from continuing operations attributable to the equity holders of the Parent Company, EUR in
millions.............................................................................................................................................................................
248.7
Pro forma result for the period from discontinued operations attributable to the equity holders of the Parent Company, EUR in
millions.............................................................................................................................................................................
9.3
Result for the period attributable to the equity holders of the Parent Company, EUR in millions.........................................257.9
  
Weighted average number of shares on the market, thousands – historical..........................................................................163,042
Diluted average number of shares, thousands – historical...................................................................................................163,498
  
Pro forma earnings per share, EUR, continuing operations..............................................................................................1.53
Pro forma earnings per share, EUR, discontinued operations...........................................................................................0.06
Pro forma earnings per share, EUR...................................................................................................................................1.58
  
Pro forma diluted earnings per share, EUR, continuing operations..................................................................................1.52
Pro forma diluted earnings per share, EUR, discontinued operations...............................................................................0.06
Pro forma diluted earnings per share, EUR.......................................................................................................................1.58

Note 4 – Additional Pro Forma Information

Pro Forma Segment Information

Pro forma segment information herein is presented to reflect the pro forma impact of the acquired business of Santillana Spain to Sanoma’s operating segments presented in accordance with "IFRS 8 – Operating Segments". Sanoma has two operating segments: Sanoma Learning and Sanoma Media Finland. The acquired business of Santillana Spain is reported as part of the Sanoma Learning segment.

The following table sets forth unaudited pro forma net sales by operating segments for the year ended 31 December 2020:

 For the year ended 31 December 2020
 Sanoma historicalSantillana Spain carve-out IFRS Sanoma
pro forma
 (audited)(note 1)(unaudited)
 (EUR in millions)
Learning...................................................................................................................................................................499.7105.5605.2
Media Finland...........................................................................................................................................................562.6562.6
Unallocated / Eliminations........................................................................................................................................(0.5)(0.5)
Total net sales..........................................................................................................................................................1,061.7105.51,167.2

The following table sets forth the reconciliation of pro forma operational EBIT excluding purchase price allocation ("PPA") by operating segments for the year ended 31 December 2020:

 For the year ended 31 December 2020
 Sanoma historicalSantillana Spain carve-out IFRSSantillana Acquisition and FinancingSanoma
pro forma
 (unaudited)(note 1)(note 2)(unaudited)
 (EUR in millions)
EBIT..............................................................................................................................................................................270.1(1)29.2(15.9)283.4
     
Items affecting comparability (IACs) and PPA adjustments and amortisations    
Learning    
Impairments...................................................................................................................................................................(0.6)(0.6)
Restructuring expenses..................................................................................................................................................(12.7)1.3(11.4)
PPA adjustments and amortisations...............................................................................................................................(16.2)(15.9)(32.1)
Media Finland    
Capital gains/losses........................................................................................................................................................164.8164.8
Restructuring expenses..................................................................................................................................................(15.7)(15.7)
PPA adjustments and amortisations...............................................................................................................................(6.1)(6.1)
Other companies    
Capital gains/losses........................................................................................................................................................0.20.2
Restructuring expenses..................................................................................................................................................(0.2)(0.2)
Items affecting comparability (IACs) and PPA adjustments and amortisations total.................................................113.61.3(15.9)99.0
Operational EBIT excluding PPA, continuing operations............................................................................................156.527.9184.4

____________

(1)                   Audited.

Capital Expenditure

Sanoma’s capital expenditure was EUR 42.5 million for the year ended 31 December 2020. Santillana Spain’s historical capital expenditure in accordance with Sanoma’s presentation was EUR 0.6 million for the year ended 31 December 2020.

Alternative Performance Measures

The following table sets forth the reconciliation of pro forma operational EBIT excluding PPA for the year ended 31 December 2020:

 For the year ended 31 December 2020
 Sanoma historicalSantillana Spain carve-out IFRSSantillana Acquisition and FinancingSanoma
pro forma
 (unaudited)(note 1)(note 2)(unaudited)
 (EUR in millions)
EBIT..............................................................................................................................................................................270.1(1)29.2(15.9)283.4
Items affecting comparability    
Restructuring expenses..................................................................................................................................................(28.5)1.3(27.2)
Impairments...................................................................................................................................................................(0.6)(0.6)
Capital gains/losses........................................................................................................................................................165.0165.0
IACs total......................................................................................................................................................................135.91.3137.2
Purchase price allocation adjustments and amortisations (PPAs)...............................................................................(22.3)(15.9)(38.3)
Operational EBIT excluding PPA.................................................................................................................................156.527.9184.4

____________

(1)                   Audited.

The following table sets forth the reconciliation of operational EBITDA for continuing operations for the year ended 31 December 2020:

 For the year ended 31 December 2020
 Sanoma historicalSantillana Spain carve-out IFRSSantillana Acquisition and FinancingSanoma
pro forma
 (unaudited)(note 1)(note 2)(unaudited)
 (EUR in millions)
Operational EBIT excluding PPA.......................................................................................................156.527.9184.4
Depreciation of buildings and structures..............................................................................................(23.8)(1.0)(24.8)
Depreciation of rental books................................................................................................................(13.2)(13.2)
Amortisation of film and TV broadcasting rights.................................................................................(52.4)(52.4)
Amortisation of prepublication rights...................................................................................................(20.7)(6.1)(26.8)
Other depreciations, amortisations and impairments............................................................................(43.8)(1.4)(45.2)
Items affecting comparability in depreciation, amortisation and impairments.......................................    0.6     –      0.6
Operational EBITDA..........................................................................................................................309.936.4346.3

Additional information
Kaisa Uurasmaa, Head of Investor Relations and Sustainability, tel. +358 40 560 5601

Sanoma

Sanoma is an innovative and agile learning and media company impacting the lives of millions every day. 

Our learning products and services enable teachers to develop the talents of every child to reach their full potential. We offer printed and digital learning content as well as digital learning and teaching platforms for primary, secondary and vocational education, and want to grow our business across Europe. 

Our Finnish media provide independent journalism and engaging entertainment also for generations to come. Our unique cross-media position offers the widest reach and tailored marketing solutions for our business partners. 

Today, we operate in eleven European countries and employ close to 5,000 professionals. In 2020, our net sales amounted to approx. 1.1bn€ and our operational EBIT margin excl. PPA was 14.7%. Sanoma shares are listed on Nasdaq Helsinki. More information is available at www.sanoma.com


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