743700XJC24THUPK0S03-2024-12-31-en


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Strategic review

In 2024, Sanoma continued to build on the long-term competitive strengths of both Learning and Media Finland by enhancing

its three strategic focus areas for 2024–2026: 1) increasing the profitability of Learning and Media Finland, 2) growing

organically and through smaller in-market acquisitions in Learning and 3) deleveraging the balance sheet.

Sanoma Learning continued to focus on and invest in developing inclusive, digital and printed learning materials across

markets and in harmonising and developing its digital learning platforms. Strategic choices to discontinue low-value

distribution contracts in the Netherlands and Belgium and divest the exam preparation business Stark were implemented

during the year, resulting in lower net sales but an improved business mix for future years. In 2024, learning content

represented approx. 79% (2023: 74%) of Learning’s net sales.

The implementation of Learning’s process and efficiency program Solar proceeded as planned, with 80% of the actions

completed by the end of 2024. Program Solar is estimated to bring EUR 55 million operational efficiencies from 2026 onwards,

and it consists of four streams: 1) organisational optimisation post curriculum renewals in Poland and Spain, 2) process

improvements in publishing operations, 3) continuing harmonisation of digital learning platforms, and 4) overhead and other

optimisations across the SBU. Supported by Program Solar, Learning is expected to reach its long-term profitability target

(operational EBIT margin excl. PPA) of 23% in 2026.

In Media Finland, enhancing and investing in successful digital transformation both in news media and entertainment

remained a strategic focus area, with the aim of strengthening the sustainable long-term competitive position of the business.

Media Finland’s total subscription base continued to grow overall as solid growth in digital subscriptions offset the decline in

print subscriptions. In B2B, digital advertising demand was stable, while Sanoma’s market share within domestic digital

advertising increased. Media Finland has a reasonably balanced business portfolio, with 55% (2023: 52%) of net sales

attributable to the relatively stable B2C business, mainly subscription, and 45% (2023: 48%) to the B2B business in 2024.

Within B2B, print advertising represented only 15% (2023: 17%) of net sales. During the year, Media Finland successfully

continued to implement its well-established cost conscious way of working, resulting in a significant improvement in

profitability.

In both Learning and Media Finland, Sanoma continued to move forward with numerous AI initiatives. Several new services

empowered by generative AI were launched during the year, with a strong emphasis on responsible use and human oversight.

Sustainability is deeply rooted in the purpose of Sanoma’s learning and media businesses, which have a positive impact on

the lives of millions of people every day. During the year, Sanoma’s sustainability work included reducing its carbon footprint

as well as on developing diversity, equality and inclusion (DE&I), leadership, ethical use of AI and suppliers’ sustainability

practices across the Group. More information on the sustainability performance is available in the Sustainability Statement.

Successful implementation of the strategy in 2024 resulted in a strong free cash flow improvement and a significant

strengthening of the balance sheet with the key ratios within long-term target levels at the end of the year. In September,

Sanoma launched its first social bond framework and issued a EUR 150 million three year Social Bond, which was allocated to

more than 40 investors. This, together with the extension of the maturity of the majority of the committed Revolving Credit

Facility (RCF) to November 2027, extended significantly the average maturity of Sanoma’s external debt.

From a competitive and financial perspective, Sanoma is in a strong position to implement its ambitious strategy for

sustainable long-term growth, including the aim to expand through value-creating M&A in K12 learning services. The long-term

financial and sustainability targets and 2030 growth ambition are unchanged (details available in this Annual Report under

Sanoma as an investment).


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Financial review FY 2024

Net sales decreased in both businesses and the Group’s net sales amounted to EUR 1,344.8 million (2023: 1,392.9). In

Learning, net sales declined mainly due to the planned discontinuation of low-value distribution contracts in the Netherlands

and Belgium and the divestment of the exam preparation business Stark. The net sales decline in Spain, visible in the third

quarter, was offset by growth in other learning content businesses, in particular in Poland and the Netherlands. In Media

Finland, the net sales decline was mainly driven by small divestments in the beginning of the year, while lower advertising

sales were mostly offset by continued growth in subscription sales. The Group’s comparable net sales development was -2%

(2023: 2%), amounting to -2% in Learning and -1% in Media Finland.

Operational EBIT excl. PPA improved to EUR 180.0 million (2023: 175.4). In Learning, earnings were relatively stable. The

adverse earnings impact related to the lower sales in Spain was offset by the positive impact of lower paper costs and price

increases across learning content businesses. The divestment of Stark had a minor adverse impact on earnings. In Media

Finland, strong earnings improvement was mainly driven by lower paper costs and continuing efficiency enhancement. Costs

in Other operations increased mainly due to higher hosting and other technology costs as well as incentive provisions.

EBIT improved to EUR 81.8 million (2023: 51.7), driven by lower IACs and improved operational earnings. The IACs

amounted to EUR -61.5 million (2023: -82.3). The restructuring expenses were at the previous year's level and were mostly

related to strategic development costs, including Program Solar, and integration costs of recent acquisitions. The impairments

were largely related to the planned discontinuation of low-value distribution contracts in the Netherlands and Belgium. The

comparison period included a EUR 36 million booking related to VAT claims in Media Finland. PPAs amounted to EUR 36.7

million (2023: 41.3).

Net financial items increased to EUR -33.4 million (2023: -30.5) as a result of higher interest rates for external loans. The

impact was partially mitigated by the lower amount of external debt. The average interest rate of external loans was 4.8%

(2023: 3.6%).

Result before taxes improved to EUR 48.4 million (2023: 20.6). Income taxes amounted to EUR -7.8 million (2023: -16.5).

Result for the period was EUR 40.6 million (2023: 4.1).

Operational earnings per share increased to EUR 0.46 (2023: 0.39) and earnings per share to EUR 0.19 (2023: -0.03).

IACs, PPAs and reconciliation of operational EBIT excl. PPA


EUR million	2024	2023
EBIT	81.8	51.7
Items affecting comparability (IACs)
Restructuring expenses	-37.6	-37.6
Of which related to Program Solar	-17.0	-21.8
Impairments	-29.0	-13.3
Capital gains/losses	5.2	4.6
VAT claims for years 2015−2018 and 2019−2021		-35.9
IACs total	-61.5	-82.3
Purchase price allocation adjustments and amortisations (PPAs)	-36.7	-41.3
Operational EBIT excl. PPA	180.0	175.4

A detailed reconciliation on SBU level is presented under Reconciliation of certain key figures.

Financial position

At the end of December 2024, net debt amounted to EUR 568.5 million (2023: 639.7). Net debt to adjusted EBITDA ratio

improved to 2.2 (2023: 2.8), being within the long-term target of below 3.0. Supported by the strong cash flow development

during the year and in line with the seasonality of the learning business, the Group's net debt decreased not only compared to

the previous year but also compared to the end of September 2024. In September 2024, Sanoma issued a EUR 150 million

three-year social bond and used part of the funds to prepay a EUR 100 million term loan related to the acquisition of Santillana

due in December 2024. The issuance of the Social Bond in September, together with the extension of the maturity of the

majority of Sanoma’s EUR 300 million committed Revolving Credit Facility (RCF) to November 2027, significantly extended

the average maturity of Sanoma’s external debt (more information on p. 135). At the end of December 2024, the RCF was fully

unused. Equity ratio was 45.0% (2023: 42.5%), being within the long-term target range of 35−45%.

At the end of December 2024, the Group’s equity totalled EUR 771.7 million (2023: 799.4) and the consolidated balance sheet

amounted to EUR 1,879.1 million (2023: 2,036.6).


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Cash flow

The Group’s free cash flow improved to EUR 145.3 million (2023: 105.1) or EUR 0.89 per share (2023: 0.64). The

improvement was driven by higher operational results as well as lower investments in prepublication assets, partially resulting

from Program Solar, and TV programme rights. The impact of higher financial expenses paid was more than offset by lower

taxes paid, partially due to phasing between years.

Capital expenditure included in the Group’s free cash flow decreased to EUR 37.7 million (2023: 43.1). The capital

expenditure mainly consisted of growth investments in digital platforms and ICT in Learning, as well as investments in

technology and adapting offices to the hybrid way of working in Media Finland.

Progress in Program Solar in Learning

On 26 October 2023, Sanoma announced that Sanoma Learning’s operational EBIT margin excl. PPA is expected to reach its

long-term target level of 23% in 2026 (2023: 18.7%), supported by the new process and efficiency improvement program

Solar. Annual operational efficiencies from Program Solar are estimated to amount to approx. EUR 55 million from 2026

onwards. The implementation of Solar is materially completed, with 80% of the initiatives taken by the end of 2024, as

indicated earlier.

The costs related to Solar are estimated to be approx. EUR 45 million and are mainly related to restructuring expenses. The

costs of Solar are treated as IACs and are booked in Learning’s result. The majority of Solar-related costs occurred during

2023–2024. The costs of Solar, treated as IACs, amounted to EUR 17 million in 2024 and EUR 22 million in 2023. The

remainder of the costs are expected to occur in 2025. All organisational optimisation actions are subject to works council

negotiations and other local legal procedures.

Acquisitions and divestments

On 18 January 2024, Sanoma announced that it will divest its majority holding in Netwheels Oy to Alma Media. Net sales of

the divested business were approx. EUR 8 million in 2023, and the company employed 29 people who were transferred to the

buyer at completion. The transaction was completed at the end of January.

On 8 January 2024, Sanoma announced it had divested Stark, an exam preparation business in Germany, which it acquired

with the Italian K12 learning content business from Pearson in August 2022. Net sales of the divested business were approx.

EUR 14 million in 2023 and the company employed 56 people who were transferred to the buyer with the divestment.

Information on acquisitions and divestments conducted in 2023 and earlier is available on Sanoma’s website.

Events during the reporting period

On 5 September 2024, Sanoma issued a EUR 150 million three-year social bond. The bond matures on 13 September 2027.

It carries a fixed annual interest of 4.000% and had an issue price of 99.872%. The offering was allocated to over 40 investors.

In accordance with Sanoma’s Social Bond Framework, published on 2 September 2024, the funds will be used to finance or

refinance expenditures aimed at improving access to essential education services.

On 28 August 2024, Sanoma announced that the Supreme Administrative Court had rejected Sanoma’s application for a

permission to appeal the administrative court’s decision regarding the value added tax (VAT) payment decision given by the

Finnish Tax Adjustment Board related to the tax audits at Sanoma Media Finland Oy for the years 2015–2018. The decision

had no impact on Sanoma’s financials or free cash flow, as the VAT claim has been paid in 2021 and booked in Sanoma’s

result in Q2 2023.

On 19 June 2024, Sanoma announced the composition of its Shareholders’ Nomination Committee. The four largest

shareholders have appointed the following members to the Shareholders’ Nomination Committee: Juhani Mäkinen (Vice Chair

of the Board, Jane and Aatos Erkko Foundation), Antti Herlin (Chair of the Board, Holding Manutas), Robin Langenskiöld (3rd

largest shareholder in Sanoma) and Rafaela Seppälä (4th largest shareholder in Sanoma). At its meeting on 19 June 2024,

the Committee elected Juhani Mäkinen as Chair of the Committee and invited Pekka Ala-Pietilä, Chair of Sanoma’s Board of

Directors, to serve as an expert on the Committee.

Strategic business units

In 2024, Sanoma Group included two strategic business units (SBU), Learning and Media Finland.


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Learning

Sanoma Learning is one of the global leaders in K12 education, serving about 25 million students in 12 European countries. Our

learning products and services enable teachers to develop the talents of every child to reach their potential. We offer printed and

digital learning materials as well as digital learning and teaching platforms for K12. i.e., primary, secondary and vocational

education, and we aim to continue to grow our business in Europe and beyond. We develop our methodologies based on deep

teacher and student insight and truly understanding their individual needs. By combining our educational technologies and

pedagogical expertise, we create learning products and services with the highest learning impact.

Key indicators


EUR million	2024	2023	Change
Net sales	764.2	795.2	-4%
Operational EBITDA1	241.5	237.6	2%
Operational EBIT excl. PPA 2	146.9	148.4	-1%
Margin2	19.2%	18.7%
EBIT	59.1	70.6	-16%
Capital expenditure	30.3	33.8	-10%
Average number of employees (FTE)	2,612	2,849	-8%

1 Excluding IACs

2 Excluding IACs of EUR -57.4 million in 2024 (2023: -43.4) as well as PPA adjustments and amortisations of EUR 30.4 million in 2024 (2023: 34.5).

Full reconciliation of operational EBITDA and operational EBIT excl. PPA is presented in a separate table under Reconciliation of certain key figures.

Net sales by country


EUR million	2024	2023	Change
The Netherlands	220.8	218.7	1%
Poland	139.2	125.7	11%
Spain	135.6	152.4	-11%
Italy	105.5	104.7	1%
Finland	59.4	60.9	-2%
Belgium	64.1	82.1	-22%
Other countries and eliminations1	39.6	50.8	-22%
Net sales total	764.2	795.2	-4%

1 Other countries include Sweden, Norway, France, Germany, Denmark and the UK.

Net sales of Learning decreased to EUR 764.2 million (2023: 795.2). The decrease was mainly attributable to the planned

discontinuation of low-value distribution contracts in the Netherlands and Belgium. The net sales decline in Spain during the

third quarter was offset by growth in other learning content businesses, in particular in Poland and the Netherlands.

Comparable net sales development was -2% (2023: 6%). Divestment of the exam preparation business Stark at the beginning

of 2024 had a EUR -14 million impact on net sales.

Operational EBIT excl. PPA was stable and amounted to EUR 146.9 million (2023: 148.4), while the corresponding margin

improved to 19.2% (2023: 18.7%). The adverse earnings impact related to the lower sales in Spain and the divestment of

Stark was offset by the positive impact of lower paper costs and price increases across learning content businesses.

EBIT amounted to EUR 59.1 million (2023: 70.6). IACs increased to EUR -57.4 million (2023: -43.4) and mainly consisted of

impairments, which were largely related to the planned discontinuation of low-value distribution contracts in the Netherlands

and Belgium as well as costs related to Program Solar. PPAs were EUR 30.4 million (2023: 34.5).

Capital expenditure amounted to EUR 30.3 million (2023: 33.8) and mainly consisted of growth investments in digital platforms

and ICT.


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Media Finland

Sanoma Media Finland is the leading cross-media company in Finland, reaching 96% of all Finns weekly. We provide

information, experiences, inspiration and entertainment through multiple media platforms: newspapers, TV, radio, events,

magazines, online and mobile channels. We have leading brands and services, such as Helsingin Sanomat, Ilta-Sanomat,

Aamulehti, Me Naiset, Aku Ankka, Nelonen, Ruutu, Supla and Radio Suomipop. For advertisers, we are a trusted partner with

insight, impact and reach.

Key indicators


EUR million	2024	2023	Change
Net sales	580.9	597.8	-3%
Operational EBITDA1	132.5	132.4	0%
Operational EBIT excl. PPA2	47.5	39.8	19%
Margin2	8.2%	6.7%
EBIT	38.2	-8.4	557%
Capital expenditure	7.2	8.6	-16%
Average number of employees (FTE)	2,109	2,144	-2%

1 Excluding IACs.

2 Excluding IACs of EUR -3.0 million in 2024 (2023: -41.3) as well as PPA adjustments and amortisations of EUR 6.3 million in 2024 (2023: 6.8).

Full reconciliation of operational EBITDA and operational EBIT excl. PPA is presented in a separate table under Reconciliation of certain key figures.

Net sales by category


EUR million	2024	2023	Change
Print	251.1	272.8	-8%
Non-print	329.9	325.0	1%
Net sales total	580.9	597.8	-3%


EUR million	2024	2023	Change
Advertising sales	214.8	219.2	-2%
Subscription sales	254.3	246.0	3%
Single copy sales	37.0	38.3	-3%
Other	74.8	94.3	-21%
Net sales total	580.9	597.8	-3%

Other sales mainly include festivals and events, marketing services, event marketing, custom publishing, books and printing services.

Net sales of Media Finland declined slightly and amounted to EUR 580.9 million (2023: 597.8). Advertising sales declined

slightly as lower sales in TV and newsprint advertising were not fully offset by continued growth in digital. Subscription sales

continued to increase, especially driven by growth in the SVOD service Ruutu+ and price increases across the product

portfolio. The decline in other sales was attributable to the recent small divestments, lower number of events held compared to

the previous year and lower external printing sales. Comparable net sales development was -1% (2023: -3%).

According to the Finnish Advertising Trends survey for December 2024 by Kantar TNS, the advertising market in Finland

declined by 3% year-on-year on a net basis in 2024. Advertising grew by 1% in TV and 1% in online excluding search and

social media (3% including search and social media), but decreased by 18% in newspapers, 10% in magazines and 2% in

radio.

Operational EBIT excl. PPA improved and amounted to EUR 47.5 million (2023: 39.8). The corresponding margin improved to

8.2% (2023: 6.7%). Strong earnings improvement was mainly driven by lower paper costs and continuing efficiency

enhancement.

EBIT improved to EUR 38.2 million (2023: -8.4) as a result of higher operational earnings and lower IACs. The IACs

decreased to EUR -3.0 million (2023: -41.3) as the comparison period included a booking of EUR 36 million VAT claims. PPAs

were EUR 6.3 million (2023: 6.8).

Capital expenditure amounted to EUR 7.2 million (2023: 8.6) and consisted of investments in technology and adapting offices

to the hybrid way of working.


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Personnel

In January–December 2024, the average number of employees in full-time equivalents (FTE) was 4,820 (2023: 5,119). The

average number of employees (FTE) per SBU was as follows: Learning 2,612 (2023: 2,849), Media Finland 2,109

(2023: 2,144) and Other operations 100 (2023: 125). The number of employees declined as a result of certain restructuring

actions, including Program Solar, across the Group and small divestments.

At the end of December 2024, the number of employees (FTE) of the Group decreased to 4,648 (2023: 5,017).

Employee benefit expenses amounted to EUR 395.0 million (2023: 405.4).

Risks and risk management

Sanoma is exposed to numerous risks and opportunities, which may arise from its own operations or the changing operating

environment in the short or long term. Sanoma divides its key risks into four main categories: strategic, operational, non-

financial and financial risks.

The most significant risks that could have a negative impact on Sanoma’s business, performance or financial status are

described below. Under the different categories, the most material risks are presented first. In addition to the risks presented in

this review, currently unknown or immaterial risks may arise or become material in the future. Significant near-term risks and

uncertainties are reported on a continuous basis in each Interim Report.

Sanoma’s Enterprise Risk Management Policy defines the Group-wide risk management principles, objectives, roles,

responsibilities and procedures also covering sustainability-related risks. The President and CEO, supported by the Executive

Management Team, is responsible for defining risk management strategies, procedures and setting risk management

priorities. SBUs are responsible for identifying, measuring, reporting and managing risks. The updated risk assessment

results, with related ongoing or planned mitigation actions, are reported to the Audit Committee and, further to the Board of

Directors twice a year. Risk management and internal control policies, processes, roles and responsibilities are presented in

more detail in the Corporate Governance Statement and in the Sustainability Statement sections of this Annual Report.

Sustainability-related risks are also further described in the Sustainability Statement.

Strategic risks

Mergers & Acquisitions (M&A)

Sanoma’s strategic aim is to grow through acquisitions primarily in Learning, where Sanoma is looking for growth opportunities

in the K12 learning services business. In Media Finland, Sanoma is interested in synergistic acquisitions in the chosen

strategic focus areas of news and feature, entertainment or B2B marketing solutions. However, Sanoma may not be able to

identify suitable M&A opportunities or suitable targets may not be available at the right valuation. Even if suitable M&A

opportunities were identified and feasible, there are several risks related to M&A transactions. M&A risks may relate to

unidentified liabilities of the target companies or their assets, changes in the market conditions, the inability to ensure the right

valuation and effective integration of acquisitions or that the anticipated economies of scale or synergies do not materialise.

Future M&A transactions may also be financed with debt, increasing Sanoma’s overall indebtedness, which may, in turn,

adversely affect the availability, costs or other terms of future financing. Regulation of M&A activity by competition authorities

may, among other things, also restrict or delay the Group’s ability to engage in M&A transactions.

To focus its business on areas where it has clear competitive advantages and leading market positions, the Group divested

some of its non-core businesses in 2024, including, the Stark exam preparation business in Germany and the 55.8% holding

in Netwheels in Finland. Information on acquisitions and divestments conducted in 2024 and earlier is available on Sanoma's

website. The success of the recent acquisitions largely depends on the timely and efficient integration of the business

operations, processes and ways of working. The process of integrating the acquired businesses into Sanoma’s existing

businesses involves uncertainties, and there can be no assurance that Sanoma will be able to integrate the businesses in the

manner or within the timeframe anticipated and achieve the anticipated benefits of the acquisitions.

Sanoma is mitigating these risks by actively maintaining its industry networks, proactively seeking potential targets, working

with well-known parties in transaction processes and following its internal policies and procedures in the decision-making,

organisation and follow-up concerning M&A transactions. Despite this, there can be no assurance that the acquisitions will be

successful and that Sanoma will achieve its strategic aim of acquisition-based growth.

Changes in customer preferences, technology and industry trends

In learning, digital and blended (combined print and digital) learning materials, methods and platforms have gradually been

gaining ground. Blended learning materials are seen to optimally support learning outcomes, and the usage of digital learning

tools has continued to increase across most markets. In the learning material distribution services, this shift towards digital is

being mirrored by a move from renting and selling books towards subscription-based commercial models, most notably in the

Dutch market. Both trends and/or their acceleration or slow-down may have an effect on the operational performance, financial

performance and/or financial position of Learning. In addition, Learning is, by nature, subject to seasonal fluctuation, with most

of the sales and earnings accrued during the second and third quarters when the new school year starts, which further

increases the pressure to be able to respond to changes in a timely manner.

On top of the key trends and market fluctuations over the last years, generative artificial intelligence (AI) has been introduced

to the market, providing Learning both opportunities and uncertainties. Applications of generative AI may bring efficiency gains

in core processes related to, for example, method creation and software development. In learning content, generative AI

provides opportunities for personalisation, underpinning the value of curated, high-quality content published and owned by

Sanoma, albeit potentially adding competitive pressure. As the speed in which new technologies develop and penetrate the

market is uncertain, there can be no assurance that Learning’s development work would keep it ahead or aligned with market

trends.

With the continued development of alternative forms of media, particularly digital media, the Group’s media businesses and

the strength of its media brands depend on its continued ability to identify and respond to constantly shifting consumer

preferences and industry trends, as well as its ability to develop new and appealing products and services in a timely manner.

Ongoing digitalisation is the driving force behind many of these changes, and adaption of new technologies is changing the

way people consume media. Print news media consumption is transforming to digital channels and viewing time of free-to-air


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(FTA) television is decreasing while online video-on-demand (VOD) consumption is increasing. The demand for advertising

derived from printed media has also been in decline in recent years as advertisers shift to digital channels, and this trend is

expected to continue. However, even the digital advertising ecosystem is changing. For example, advertisers’ preference for

performance-based advertising or the deprecation of third-party cookies may result in changes in business models related to

the sales of digital advertising.

In Media Finland, generative AI may provide opportunities for productivity improvements and possibilities to accelerate

technology development, support journalism in reaching more audiences and enhance customer communication and services.

Risks with generative AI include misuse of the Group’s data and content. AI advancements also pose risks to media brand

trust by creating seemingly credible content or increasing the volume of AI-generated content that starts to compete with

curated content.

To mitigate these risks, Sanoma is continuously developing digital and hybrid learning and media products and services. In

addition, Sanoma maintains close and long-term relationships with schools, teachers and governing bodies and typically sells

digital solutions and printed materials together. The wide cross-media offering provides Sanoma a base to constantly develop

its offering to advertisers. However, there can be no assurance that Sanoma will be able to adjust to and meet the changes of

consumer preferences, industry trends and technological developments in the future. Failure to respond to market changes by

developing and/or adopting new products and services, through both established and new platforms, on a competitive and

profitable basis may result in the Group losing market share in its established businesses to competitors. To capture potential

upsides and mitigate potential risks related to generative AI, Sanoma focuses on having up-to-date AI principles and employee

instructions and the right technology in place upfront, and on following the market developments closely.

Competitive environment and threat of new entrants

The learning and media markets in which the Group operates are highly competitive and include many regional, national and

international companies. In media, competition is affected by the level of consolidation within the Group’s markets as well as

by the development of alternative distribution channels, especially for digital products and services offered by the Group.

Competition may arise from large international media companies entering new geographic markets or expanding the

distribution of their products and services to new distribution channels. Risks may arise if competitors are faster than the

Group to adopt new technologies, such as generative AI and alternative forms of media or digital destinations, catering to both

consumer and advertiser needs. Additionally, consolidation within relevant markets may increase existing competition or give

rise to new entrants in the market. In Learning, there is a similar risk stemming from large international media companies,

digital entrants, educational technology companies, open educational resources, user-generated content or digital tools.

Furthermore, Learning is exposed to competition also from traditional publishers in different countries.

To mitigate these risks, the Group’s ability to compete effectively will require continuous efforts by the Group in, among other

things, sales and marketing, cost innovation and investment in technology to respond to changes in the markets. Although the

Group currently holds solid positions in its key markets, there can be no assurance that it will be able to maintain these

positions or that these positions will enable the Group to compete effectively in the future.

Changes in applicable laws, regulations or the political environment

The Group’s operations are subject to various laws and regulations in relation to matters including, for example, intellectual

property, health and safety, consumer protection and marketing, environment and climate, sustainability, employment,

competition, securities markets and company law, compliance, data protection, international trade and taxation, in the

countries in which the Group operates. Changes in such laws and regulations could have a material effect on Sanoma’s ability

to conduct its business effectively. For example, changes in education or digital platforms-related regulation could have a

material effect on Sanoma’s commercial propositions, technology or content investment needs, or financial performance.

Although legislation related to learning is typically country specific, which limits the magnitude of said risk at the Group level,

Sanoma faces an increased legislative risk in Poland and Spain, both of which are large markets and where broad or abrupt

education-related legislative changes could have a material effect on Learning. The introduction or delay, pace, scope and

timing of changes in education-related legislation, or their reflections in public educational spending, in the markets in which

Sanoma operates – most notably in Poland or Spain, but potentially also other markets – may also influence the performance

of Learning as a whole. In media, any adverse developments affecting the freedom of the press or source protection could

have an adverse effect on the performance of Media Finland.

Changes in taxation as well as in the interpretation of tax laws and practices may have an effect on the operations of the

Group or on its financial performance (e.g., value-added tax, VAT, applicable to Sanoma’s printed, digital and hybrid products).

Tightening of consumer protection-related laws may necessitate the amendment of some consumer media sales business

models imposing additional costs on Sanoma and having an adverse effect on its profitability. Furthermore, the deterioration of

publishers’ and broadcasters’ copyright protection or increase in legal obligations (such as reporting or monetary obligations)

towards original authors of copyright protected works affects the Group’s ability to provide its customers with new products

and services and may increase costs or impact the valuation of balance sheet items related to acquiring and managing

copyrights.

Data is an increasingly essential part of Sanoma’s business, putting privacy and consumer trust at the core of the Group’s

daily operations. Regulatory changes and new guidance by authorities or regulatory enforcement actions regarding the use of

consumer or cookie data could, therefore, have an adverse effect on Sanoma’s ability to utilise data in its business.

The Group may also be faced with the risk of overregulation on the European or national levels, or different, potentially tighter

national interpretations on the European Union (EU) regulation in its operating countries. In particular, this risk is seen to relate

to sustainability, compliance, intellectual property rights (IPR), data protection, digital transformation, consumer protection,

accessibility and AI. The EU's AI Act has entered into force in all 27 EU member states on 1 August 2024. The enforcement of

the majority of its provisions will commence on 2 August 2026, and could potentially have some impacts on certain products of

Learning.

To mitigate these risks, Sanoma aims to anticipate any changes by closely monitoring the regulatory developments and

adapting its business models accordingly. However, implementing changes to its business models in order to adapt to new

regulations is likely to impose additional costs and may take time. Violations of any applicable laws or regulations could also

result in penalties and fines.


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General economic and market conditions

The general economic and political conditions in Sanoma’s operating countries and overall industry trends could influence

Sanoma’s business activities and operational performance. In addition to the increasing global risks, including geopolitical

unrest, the fluctuating costs and supply of global commodities, such as energy, and overall inflation, general economic

conditions may be affected by various additional events that are beyond Sanoma’s control, such as natural disasters or

pandemics. Although Sanoma’s diversified and balanced business portfolio to a certain extent mitigates this type of risk, it may

cause disruption to Sanoma, its employees, markets, suppliers and customers, which could have a material adverse effect on

Sanoma’s business, operating model, financial condition and/or results of operations.

In general, long- and mid-term cyclicality associated with the performance of Learning relate to the development of public and

private education spending especially during curriculum renewals, and may affect the demand of Learning content year-on-

year. Moreover, changes in the overall economic environment can affect Learning’s cost base, particularly the cost and

availability of paper and printing, as well as of personnel. Such changes could also affect demand in segments where the

parents or students themselves (rather than the government or schools) pay for learning materials, e.g., by increasing the

demand for second-hand books. Such segments constitute a minority of Learning’s business.

In Media Finland, risks associated with business and financial performance typically relate to advertising demand (B2B) and

consumer spending (B2C). A significant proportion of Group’s net sales is derived from advertising in digital media, printed

newspapers and magazines, television and radio, and from subscriptions and single copies sold to consumers. Both of these

sources of income are sensitive to changes in the general economic environment and consumer confidence, with advertising

sales being historically somewhat more sensitive to economic downturns than consumer sales, particularly in subscription

sales. Moreover, changes in the overall economic environment can affect Media Finland’s cost base, particularly the cost and

availability of paper and printing, as well as of personnel and distribution costs. In addition to increasing Media Finland’s direct

operating costs, higher cost inflation may have an adverse indirect impact in the demand of its products and services.

Changes in the geopolitical situation, particularly in Finland, could have an indirect impact in the business operations and

financial performance of Sanoma’s businesses in Finland.

Sanoma’s diverse business portfolio and actions to manage the risks and costs related to prevailing and expected economic

conditions, partially mitigate these risks. In 2024, approx. 57% (2023: 57%) of Sanoma’s net sales was derived from learning,

approx. 22% (2023: 20%) from single copy or subscription sales, approx. 3% (2023: 3%) from print advertising, approx. 13%

(2023: 12%) from non-print advertising and approx. 6% (2023: 7%) from other sales.

Operational risks

Changes in economic conditions

Changes in general economic conditions may be reflected in Sanoma’s operational and financial performance. Cost inflation

may continue to have some impact on Sanoma’s operating costs. The availability of newsprint paper, the paper quality most

used by Sanoma, has recently remained at a good level, but there can be no assurance that the situation will persist in the

future. Weakened confidence among Finnish consumers, impacted by the inflation and high interest rates since the start of the

war in Ukraine, may have an adverse impact on the demand of Media Finland’s products and services. In addition, the

weakening of the euro against main currencies, including the US dollar, may increase the cost of the goods and services

Sanoma buys in currencies other than euro (e.g., hosting and TV content) and poses a risk to Sanoma’s financial

performance, albeit part of the currency transaction risk is hedged with forward contracts. Sanoma can partly mitigate these

impacts on its financial performance through, for example, costs management actions, such as the process and efficiency

improvement program Solar, launched in October 2023 in Learning. Failure in implementing the cost management actions

related to Solar, or otherwise, may have an impact on Sanoma’s financial performance in the coming years. At the end of

2024, the implementation of Solar was materially completed, with 80% of the initiatives taken.

Data and privacy

Data is an increasingly essential part of Sanoma’s products and services in both Learning and Media Finland. The Group

holds large volumes of personal data, including that of employees, customers and, in its digital learning businesses, students

and teachers. Sanoma is subject to the General Data Protection Regulation ((EU) 2016/679, “the GDPR”), which sets strict

requirements for implementing data subject rights, and for companies to demonstrate their accountability for complying with

the regulation. Non-compliance with the GDPR in Sanoma’s business and operations, or potential inadequacy of the data

protection processes and practices may cause problems, difficulties or additional costs to Sanoma. Any infringement of the

GDPR could adversely affect Sanoma’s reputation. Furthermore, under the GDPR, a national data protection authority is

vested with the power to impose corrective actions, such as temporary or definitive bans on processing, and to impose

administrative fines for breaches of the GDPR up to EUR 20 million or 4% of the total worldwide annual turnover of a

company. The Directive on Privacy and Electronic Communications 2002/58/EC also imposes requirements for online data

collection and use. There have been various authority enforcement actions across the EU since 2021 regarding consent

practices for the use of cookies and similar identifiers. While these are benefiting the media and advertising industry in the

long term by creating a level playing field for small media players, in the short term they could also have a negative impact on

media through additional costs. Although Sanoma runs a privacy programme that monitors development and enforcement of

privacy regulations, there can be no assurance that such measures will be successful in ensuring compliance with privacy

laws, which could lead to penalties, significant remediation costs and reputational damage to Sanoma.

In addition, Sanoma is exposed to potential data breaches resulting from unauthorised or accidental loss of, or access to

personal data managed by Sanoma or by third parties processing data on Sanoma’s behalf. For example, Sanoma’s or its

third-party suppliers’ systems could be vulnerable to unauthorised access, misuse, breaches due to employee error or

malfeasance, computer viruses, attacks by hackers or other similar threats. Data is key in the development of Sanoma’s

products and services, as it enables content and learning services to be better tailored to the needs of customers, such as by

providing individualised learning paths and even more compelling media content. Continuing the use of data in the future is

dependent on maintaining the trust of customers, and potential data breaches could significantly undermine this trust.

To mitigate these risks, Sanoma’s key privacy implementation processes include conducting privacy impact assessments, data

lifecycle management, negotiating data processing agreements with third parties, information security measures to protect

data, data breach management procedures and implementation of data subject rights. However, there can be no assurance

that data breaches will not occur despite these efforts to prevent such breaches or, in the event that breaches occur, that

Sanoma will be able to mitigate the effects of such a breach. This could lead to reputational damage which could ultimately

lead to Sanoma’s inability to effectively compete for future business and to potential cancellations of existing contracts.


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Information and Communications Technology (ICT)

Functioning and reliable information and communication technology systems are integral to the Group’s businesses and

operations. The systems include online services, digital learning platforms, VOD platforms, newspaper and magazine

subscriptions, advertising and delivery systems, as well as various internal systems for production control, customer relations

management and supporting functions. Information and communication technology security risks may relate to confidentiality,

integrity and/or availability of information, as well as to reliability and compliance of data processing. The risks can be divided

into physical risks, such as fire, sabotage and equipment breakdown, and logical risks, such as information security risks,

including the increasing threat of malware and cyber-attacks, hacking of personal data or other sensitive data assets, and

employee or software failure. Additionally, fragmentation of the data landscape and legacy systems or failure in meeting

customer needs or local requirements when developing or harmonising the digital offering could cause a delay or hinder the

Group’s digitalisation.

To mitigate these risks, Sanoma has continuity and disaster recovery plans in place for its critical systems and clear

responsibilities regarding information and communication technology security. Information security controls include the use of

threat intelligence capabilities, cyber security incident detection capabilities, identity and access management solutions, log

management capabilities and the use of external information security audits. Sanoma’s insurance programme provides partial

coverage for insurable information security risk. Although Sanoma has several information security control measures in place,

there can be no assurance that such measures will be adequate to prevent failures of one or more of the Group’s essential

information and communication technology systems, which could cause disruptions to its business and reputational damage

resulting from possible data breaches.

Third parties

A broad network of third parties in a wide variety of countries plays an integral role in Sanoma’s daily operations. Third-party

suppliers in Sanoma’s value chain include, among others, technology solution and service providers, paper, print and logistics

suppliers as well as content providers both for Learning and Media Finland. Therefore, risks relating to the availability, price,

quality, security and delivery schedules of third-party suppliers are material for Sanoma’s operations. During recent years,

these include increased use of external cloud-based services, the functioning of which is strongly dependent on usability and

accessibility of global internet connections.

The expanding global supply chain risks that are a combination of, for example, geopolitics, post-pandemic situation,

economic environment, high inflation, growing sustainability requirements and production factors, may result in much tighter

supply market conditions, cost and availability concerns. The current global geopolitical and economic situation may also

cause delivery delays and cost overruns. To mitigate the risks inherent in its supply chain, Sanoma has diversified its supplier

base with a targeted selection of regional and local suppliers and developed response strategies should disruption materialise.

Close cooperation with the suppliers helps Sanoma to assess and understand which suppliers are most at risk under different

circumstances.

Sanoma uses freelancers to support its own editorial staff in content creation. The status of freelancers and related copyright

legislation development may vary by authority and country, but no individual case is estimated to become material unless it

escalates to concern a large group of freelancers working for Sanoma. The development in the status of freelancers or the

related regulation may, however, also increase the related costs.

In addition, certain advertising and marketing efforts are executed with the help of third parties. The advertising technology

ecosystem consists of players, such as Google and Facebook, that have dominant market power, which may lead to an

imbalance in their agreements entered into with Sanoma. Sanoma participates in a class action by European publishers

against Google regarding abuse of Google's dominant position in the advertising technology ecosystem.

Sanoma’s daily business is dependent on its ability to identify sources of supply that meet Sanoma’s standards and identified

business, technology and sustainability requirements, although Sanoma is not dependent on any individual suppliers. To

mitigate third-party-related risks, Sanoma follows the guiding principles of supplier risk management set in the Group’s

Procurement Policy, Supplier Code of Conduct and legal framework. The most significant suppliers are selected through

competitive bidding and qualification processes. Suppliers and other third parties are subject to a Know Your Counterparty

(KYC) process to identify any risks related to anti-bribery, sanctions regulations and other issues.

With suppliers most relevant for Sanoma’s business continuity, Sanoma has set up steering practices and supplier

engagement to jointly mitigate the identified risks, for example, by increasing the paper inventory and agreeing on steps to

avoid problems with newspaper delivery. If any of the key suppliers had to be replaced abruptly, it could cause temporary

business interruptions and/or increase costs.

Despite the processes and risk mitigation activities that Sanoma has in place, Sanoma may not be able to ensure that its

suppliers or other third parties comply with all relevant regulations and its internal policies and standards, which could, for

example, lead to legal processes and/or reputational damage. In addition, cooperation with third parties may expose Sanoma

to certain data-related risks.

Intellectual Property Rights (IPR)

The Group’s products and services largely consist of intellectual property delivered through a variety of media. Key IPR related

to Sanoma’s products and services are copyrights including rights to make the copyright protected works available to the

public, trademarks, business names, domains and know-how owned and licensed by the Group. In addition, the Group

conducts business in certain countries where the extent of effective legal protection and enforcement of IPR may differ and,

therefore, cause uncertainty. Moreover, despite trademark and copyright protection, third parties may copy, commercially

exploit, infringe on or otherwise profit from the Group’s proprietary rights without authorisation. These unauthorised activities

may be more easily facilitated by internet and generative AI tools. The scarcity of internet and generative AI-specific legislation

relating to trademark and copyright protection or enforcement of rights, as well as effective and concrete means to intervene

with online IPR infringements, create an additional challenge for the Group in protecting its proprietary rights relating to its

online business processes and other digital rights, and failure to protect its proprietary rights or IPR could result in the loss or

diminution in value of these rights. Sanoma also uses a high volume of third-party IPR in its operations, which exposes it to

possible infringement claims from third parties. Such claims could result in burdensome litigations and additional costs as well

as adversely affect Sanoma’s reputation, which could, in turn, have a negative impact on Sanoma’s operations.


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To mitigate these risks, the Group relies on copyright, trademark and other intellectual property laws as well as its Group-wide

IPR Policy and procedures to establish and protect its proprietary rights in these products. However, there can be no

assurance that the Group’s proprietary rights will not be challenged, invalidated or circumvented.

Business interruption, health and safety and physical climate-related hazards

Operational disruption to the Group’s business may be caused by a major disaster and/or external threat that could restrict its

ability to supply products and services to its customers, including potential disruptions, such as the availability of internet or energy

in the Group’s main operating countries. The Group is exposed to various health and safety and environmental risks, such as

natural disasters and hazards following physical risks of climate change, that are beyond Sanoma’s control and that could cause

business interruption and result in significant costs. External threats including, but not limited to pandemics, terrorist attacks,

strikes and weather conditions, could affect the Group’s businesses and employees, disrupting daily business activities. Also, any

failure to maintain high levels of safety management could result in physical injury, sickness or liability to Sanoma’s employees,

which could, in turn, result in the impairment of Sanoma’s reputation or inability to attract and retain skilled employees.

Despite Sanoma’s operational policies, efficient and accurate process management and contingency planning, there can be

no assurance that these will be sufficient in preventing any of the above-mentioned risks, or recovering from such risks. To

mitigate potential risks, Sanoma has continuity and disaster recovery plans in place for its critical systems and operations, but

there can be, however, no assurance that these will be sufficient in preventing such risks impacting Sanoma negatively.

Sanoma’s insurance programme provides coverage for insurable hazard risks, subject to insurance terms and conditions, but

there can be no assurance that Sanoma’s insurance coverage would adequately cover all or any of such costs, if such an

incident were to occur, which could result in significant costs.

Non-financial risks

Talent attraction and retention

The Group’s success depends on having competent, skilled and engaged management and employees, and on their

competencies and skills in developing appealing products and services in accordance with customer needs in a changing

environment. Recruiting and retaining skilled and motivated personnel may become increasingly difficult as a result of various

factors, including a shortage of skills in the labour market and intensifying competition for talent. In addition, Sanoma’s

involvement in M&A transactions generally exposes it to the risk of employees, including senior management and other key

employees, leaving before such projects are completed or the acquired businesses are integrated to Sanoma’s existing

business. Also, cultural differences and resistance to change may hinder the Group’s performance or transformation. Should

the Group fail to attract, retain, develop, train and motivate qualified, engaged and diverse employees at all levels, it could

have an adverse effect on the Group’s profitability and value creation, competitiveness and development of its business

operations in the long term.

To mitigate these risks, Sanoma aims to enhance a corporate culture that supports learning, innovation, creativity, diversity,

managing continuous change, as well as ethical and efficient ways of working, for which the framework is set in Sanoma’s

Code of Conduct and People Policy. Sanoma measures employee engagement on an annual basis, and the results are also

linked to executive and senior management remuneration. Further details of Sanoma's material impacts related to its own

workforce are available in the Sustainability Statement of this Report of the Board of Directors, section S1 Own workforce.

Human rights, anti-corruption and bribery

Sanoma operates across Europe and both of its business segments use a wide network and variety of business partners that

provide products and services. These business partners range from individual third-party content providers to international

paper and print producers and cloud-service providers (more information on risk related to third-parties is available above

under Operational risks). Sanoma is committed to conducting business in a legal and ethical manner in compliance with local

and international laws and regulations applicable to its business as well as its Code of Conduct and Supplier Code of Conduct.

Nevertheless, there is a risk that Sanoma’s employees or business partners may act in a way that potentially impacts or

violates human rights or anti-corruption and bribery laws and regulations or they may act unethically.

To mitigate these risks, all Sanoma employees, for example, must comply with Sanoma’s Code of Conduct, which supports the

international standards on human rights and labour conditions and clearly prohibits all corruption and bribery. The requirements

of the Code of Conduct are extended to Sanoma’s suppliers through the Supplier Code of Conduct. Sanoma aims to ensure

compliance with measures such as a mandatory e-learning course on the Code of Conduct to all employees; however, there can

be no assurance that Sanoma’s internal control measures will detect and prevent misbehaviour by individual employees or third-

party suppliers. Breaches of applicable laws and regulations or corporate policies by Sanoma’s employees or business partners

may lead to legal processes, sanctions and fines, as well as reputational damage affecting Sanoma’s operations, which could

have a material adverse effect on Sanoma’s business, financial condition or results of operations. Further details of Sanoma's

material impacts and risks related to human rights, anti-corruption and bribery are available in the Sustainability Statement of

this Report of the Board of Directors, sections S1 Own workforce, S2 Workers in the value chain, S4 Customers and End-users

and G1 Business conduct.

Environment and climate

Sanoma’s most significant climate and biodiversity impacts derive from greenhouse gas emissions caused by resources, i.e.,

energy and materials, used in its value chain. As Sanoma’s business is not highly carbon intensive, no significant climate risks

are expected to arise in the short term. In the medium to long term, Sanoma has identified low to medium climate and

biodiversity-related transition risks related to regulatory changes as well as brand and changing customer behaviour. Physical

climate-related risks include the increased severity and frequency of extreme weather events such as cyclones or floods.

Through its resource use, the availability and price of certified paper and renewable energy pose some risk for Sanoma and

changes in them may potentially have an adverse impact on the Group’s business and financial performance. The effects of

climate change are wide-ranging and may, in the long term, bring, for example, considerable social uncertainty, which may in

turn cause risks that are currently unidentified.

Sanoma mitigates climate-related risks through its ambitious climate strategy and by developing sustainability together with its

stakeholders. Sanoma works alongside its suppliers to improve their sustainability performance by monitoring and collecting

relevant data and using this to compare suppliers. To identify and control environmental and climate-related risks and

opportunities, Sanoma evaluates them as part of its annual risk-assessment process. Further details of Sanoma's material


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impacts and risks related to environmental topics are available in the Sustainability Statement of this Report of the Board of

Directors, sections E1 Climate change, E4 Biodiversity and ecosystems and E5 Resource use and circular economy.

Financial risks

Funding and liquidity

Under all circumstances, the Group seeks to maintain adequate liquidity, which depends on a number of factors. The Group’s

liquidity risk relates to servicing debt, financing investments and retaining adequate working capital. Sanoma aims to minimise

its liquidity risks by ensuring sufficient revenues, maintaining adequate committed credit limits, using several financing

institutions and forms of financing, and spreading loan repayment programmes over a number of calendar years. The Group’s

Treasury Policy sets minimum requirements for liquidity reserves.

There can be no assurance that the Group will be able to maintain a sufficient level of liquidity or that the Group will be able to

obtain, on a timely basis or at all, sufficient funds on acceptable terms to provide adequate liquidity in the event that cash flows

from operations, unused committed credit line and cash reserves prove to be insufficient. Negative changes in economic

environment could affect the Group’s profitability and cash flow in a manner that could adversely impact the Group’s ability to

comply with financial covenants in loan agreements. Failure to comply with the financial covenants could lead to acceleration

of loans. Failure to generate additional funds, whether from operations or additional debt or equity financings, may, for

example, require the Group to delay or abandon some or all of its strategy initiatives, including its strategic aim of acquisition-

based growth, which could have a material adverse effect on the Group’s business, financial condition or results of operations.

In addition, any future adverse developments, such as a deterioration in the financial markets and a worsening of general

economic conditions, may adversely affect Sanoma’s ability to borrow additional funds as well as the cost and other terms of

the funding. For example, global financial markets have experienced, and may continue to experience, significant volatility and

liquidity disruption, for example, due to geopolitical risks, high inflation or the impacts of the war in Ukraine, which may

adversely affect Sanoma’s funding costs and access to funding and ultimately affect Sanoma’s ability to finance its operations.

A more detailed description of the funding and liquidity risks and their management is available in the Consolidated Financial

Statements, Note 5.2.

Interest rate

The Group’s interest rate risk is mainly related to changes in the reference rates and loan margins of floating rate loans in the

Group’s loan portfolio. The Group manages its exposure to interest rate risk by ensuring that the interest duration of the gross

debt of the Group is within a certain time range approved by the Board of Directors as part of the Group’s Treasury Policy. The

Group may also manage its exposure to interest rate risk by using a mix of fixed rate and floating rate loans or by utilising

interest rate derivatives.

As at 31 December 2024, the Group’s total interest-bearing loans amounted to EUR 456 million. The share of fixed rate loans

was 33%, amounting to EUR 149 million. As at 31 December 2024, the Group did not have any interest rate derivatives. As a

result of the floating rate loans, a significant rise in interest rates would lead to an increase in financial expenses limiting for

example the Group’s ability to pay dividends. For example, one percentage point increase in interest rates for the loan portfolio

as at 31 December 2024 would cause a EUR 2.6 million (2023: 3.1) increase in Sanoma's net financing costs. A failure to

manage interest rate risk may have an adverse effect on the Group’s financial condition.

A more detailed description of the interest rate risks and their management is available in the Consolidated Financial

Statements, Note 5.2.

Currency

The majority of the Group’s cash flow from operations is denominated in euros. However, the Group is exposed to some

transaction risk resulting from cash flows generated from sales and expenses denominated in other currencies. Group

companies are responsible for monitoring and hedging material transaction risks related to their business operations in

accordance with the Group’s Treasury Policy. The majority of the Group’s transaction risk in 2024 was related to the

procurement of IT services and TV programming rights, both denominated in US dollars, the strengthening of which could

significantly increase the Group’s operating costs. The Group has selectively entered into forward contracts as a means of

hedging against significant transaction risks.

Internal funding transactions within the Group are mainly carried out in the functional currency of the subsidiary. Group

Treasury is responsible for monitoring and hedging the currency risks related to intra-group loans. Derivative instruments are

used to hedge future cash flows, hence changes in their value will offset changes in the value of cash flows at the time they

are paid or received. The materialisation of any of these risks could have a materially adverse effect on the Group’s earnings

and cash flow directly, and there can be no assurance that the hedging of these risks is sufficient. As at 31 December 2024,

the Group had hedged intra-group loans of EUR 14.3 million (2023: 10). If the hedged currencies weakened by 10% against

the euro at the year-end date 31 December 2024, the change in the value of forward contracts would have decreased financial

expenses for 2024 by EUR 1.7 million (2023: 1.0). If the currencies strengthened by 10% against the euro, financial expenses

would have increased by EUR 1.7 million (2023: 1.0).

The Group is also exposed to translation risk resulting from converting the income statement and balance sheet items of

foreign subsidiaries into euros. A significant change in exchange rates may have an effect on the value of the businesses in

Poland, Norway and Sweden. For the year ended 31 December 2024, business operations outside the euro area accounted

for 13.1% (2023: 11.7%) of consolidated net sales and mainly consisted of revenues in Polish złoty, Norwegian krone and

Swedish krona. The Group did not hedge against translation risk in 2024, in accordance with the Group’s Treasury Policy

approved by the Board of Directors.

A more detailed description of the currency risks and their management is available in the Consolidated Financial Statements,

Note 5.2.

Credit

The Group’s credit risks are related to its business operations, that is, the risk of the Group not being able to collect the

payments for its receivables. Possible weakening of the economy, for example due to geopolitical risks or high inflation, may

increase the Group’s credit risk, although potential concentrations of credit risk are offset by the Group’s diversified operations

and the fact that no individual customer or group of customers is material to the Group. As part of the quarterly reporting,

Sanoma reviews the potential changes on the expected credit losses and adjusts provisions accordingly if needed. In


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Learning, credit risk of certain customers with a high-risk profile is partially covered by credit insurance. The Group’s

operational units are responsible for managing credit risks related to their businesses.

Agreements Sanoma has entered into with financial institutions contain an element of risk of the counterparties being unable

to meet their obligations, which could have a material adverse effect on Sanoma’s business and financial condition. The

Group’s Treasury Policy specifies that financing, deposits and derivative transactions are carried out with counterparties of

good credit standing and divided between a sufficient number of counterparties in order to protect financial assets. The Group

has spread its credit risks efficiently by dealing with several financing institutions. Sanoma’s ability to manage its financial

counterparty-related risks depends on a number of factors, including market conditions affecting its financial counterparties,

and there can be no assurance that Sanoma’s measures will be successful in preventing the realisation of financial

counterparty-related risks, which could have a material adverse effect on Sanoma’s business and financial condition.

A more detailed description of the credit risks and their management is available in the Consolidated Financial Statements,

Note 5.2.

Impairment of goodwill, immaterial rights and other intangible assets

At the end of December 2024, Sanoma’s consolidated balance sheet included EUR 1,455.9 million (2023: 1,532.7) of goodwill,

immaterial rights and other intangible assets. The majority of these are related to the learning business. In accordance with

IFRS, instead of goodwill being amortised regularly, it is tested for impairment on an annual basis or more frequently if there is

any indication of impairment. Changes in business fundamentals could lead to further impairment, thus impacting Sanoma’s

equity and equity-related ratios. Furthermore, as Sanoma’s strategic aim is to grow through acquisitions, material amounts of

goodwill, immaterial rights and other intangible assets might be recorded on Sanoma’s balance sheet in the future in

connection with the completions of acquisitions and may be impaired. The impairment losses on goodwill, immaterial rights

and other intangible assets for the year ended 31 December 2024, totalled EUR 33 million (2023: 11). Impairments of other

intangible assets amounted to EUR 29 million (2023: 1) and mainly related to the discontinuation of low-value distribution

contracts in the Netherlands and Belgium.

Seasonal fluctuation

The Group’s businesses are exposed to seasonal fluctuation. For example, the Group’s learning business has, by its nature,

an annual cycle with strong seasonality. Most net sales and earnings are accrued during the second and third quarters, while

the first and fourth quarters are typically loss-making. Shifts of single orders between quarters may have a material impact

when comparing quarterly net sales and earnings on a year-on-year basis, and thus year-to-date figures typically provide a

more comprehensive picture of Learning’s business performance and development.

In the media business, net sales and earnings are particularly affected by the development of advertising. Advertising sales

are influenced, for example, by the number of newspaper and magazine issues published each quarter, which varies annually.

TV advertising in Finland is usually strongest in the second and fourth quarters. The events business in Finland is typically

focused on the second and third quarters.

Such seasonal fluctuations influence the Group’s net sales, EBIT and free cash flow and, thus, could have a material adverse

effect on Sanoma’s business, financial condition or results of operations and impact the comparability of the quarterly financial

information of the Group.

Changes to tax laws or their application, or tax audits

Sanoma’s tax burden depends on tax laws and regulations and their application and interpretation. Changes in them may

increase Sanoma’s tax costs to a significant degree, which could have an adverse effect on Sanoma’s financial condition and/

or results of operations. In addition, Sanoma may, at times, be subject to tax audits conducted by national tax authorities. Tax

audits or other auditing measures carried out by tax or other authorities could result in an imposition of additional taxes (such

as income taxes, VAT and withholding taxes), which could lead to an increase in Sanoma’s tax liability.

Changes in taxation, as well as in the interpretation of tax laws and practices applicable to Sanoma’s products and services or

their distribution, e.g. VAT, may have an effect on the Group’s operations or its financial performance. Sanoma booked a total

net amount of EUR 31 million of VAT claims for the years 2015−2018 and 2019−2021 concerning the treatment of VAT on

certain magazines that were printed in multiple locations in Europe and processed in and distributed through a centralised

logistics centre in Norway, as IACs in Media Finland’s result in 2023. In August 2024, the Supreme Administrative Court

rejected Sanoma’s application for permission to appeal the decision regarding the years 2015−2018. Thus, it will not give a

resolution to the Company’s appeal. A decision regarding 2019−2021 is still pending Tax Adjustment Board's decision. The

VAT regulations have changed as of 1 July 2021 and, thus, further claims related to the matter are not expected.

A more detailed description of the Group’s financial risks and their management is available in the Consolidated Financial

Statements, Note 5.2.

Outlook for 2025

In 2025, Sanoma expects that the Group’s reported net sales will be EUR 1.28‒1.33 billion (2024: 1.34). The Group’s

operational EBIT excl. PPA is expected to be EUR 170−190 million (2024: 180).

The outlook is based on the following assumptions:

■ Demand for learning content will be relatively stable across the Group's main operating markets.

■ The advertising market in Finland will be relatively stable.


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Corporate governance

Separate Corporate Governance Statement 2024 and Remuneration Report 2024 can be read in the Governance section of

this Annual Report.

Decisions of the Annual General Meeting 2024

Sanoma Corporation’s Annual General Meeting (AGM) was held on 17 April 2024, in Helsinki, Finland. For the purposes of

expanding the opportunities for shareholders’ participation, the opportunity was reserved for the shareholders to exercise their

rights by voting in advance.

The meeting adopted the Financial Statements, the Board of Directors’ Report and the Auditor’s Report for the year 2023, as

well as discharged the members of the Board of Directors and the President and CEO from liability for the financial year 2023.

In addition, the meeting made an advisory decision on the adoption of the Remuneration Report of the governing bodies.

The AGM resolved that a dividend of EUR 0.37 per share shall be paid. The dividend shall be paid in three instalments. The

first instalment of EUR 0.13 per share was paid to a shareholder who was registered in the shareholder register of the

Company maintained by Euroclear Finland Oy on the dividend record date 19 April 2024. The payment date was 26 April

2024.

The second instalment of EUR 0.13 per share was paid to a shareholder who was registered in the shareholder register of the

Company on the dividend record date 17 September 2024. The payment date for the instalment was 24 September 2024.

The third instalment of EUR 0.11 per share was paid to a shareholder who was registered in the shareholder register of the

Company on the dividend record date 5 November 2024. The payment date for the instalment was 12 November 2024.

The AGM resolved that the number of the members of the Board of Directors shall be set at eight. Pekka Ala-Pietilä, Julian

Drinkall, Rolf Grisebach, Anna Herlin, Mika Ihamuotila, Sebastian Langenskiöld and Eugenie van Wiechen were re-elected as

members, and Klaus Cawén was elected as a new member of the Board of Directors. Pekka Ala-Pietilä was elected as the

Chair of the Board and Klaus Cawén as the Vice Chair. The term of all Board members ends at the end of the AGM 2025.

The AGM resolved that the remuneration payable to the members of the Board of Directors remains unchanged. The monthly

remunerations are EUR 12,000 for the Chair of the Board of Directors, EUR 7,000 for the Vice Chair of the Board of Directors,

and EUR 6,000 for the members of the Board of Directors.

The meeting fees of the Board of Directors are:

■ For Board members who reside outside Finland: EUR 1,000 / Board meeting where the member was present;

■ For members of the Board of Directors who reside in Finland: No separate fee is paid for attending Board meetings

■ For the Chairs of Board of Directors’ Committees: EUR 3,500 / Committee meeting participated in;

■ For Committee members who reside outside Finland: EUR 2,500 / Committee meeting where the member was present

and EUR 1,500 / Committee meeting participated in; and

■ For Committee members who reside in Finland: EUR 1,500 / Committee meeting participated.

The meeting fees of the Shareholders’ Nomination Committee remain unchanged and are:

■ For the Chair of the Shareholders’ Nomination Committee: EUR 3,500 / Committee meeting participated in;

■ For members of the Shareholders’ Nomination Committee who reside outside Finland: EUR 2,500 / Committee meeting

where the member was present and EUR 1,500 / Committee meeting participated in; and

■ For members of the Shareholders’ Nomination Committee who reside in Finland: EUR 1,500 / Committee meeting

participated in.

The AGM appointed audit firm PricewaterhouseCoopers Oy as the Auditor and the Sustainability Auditor of the Company with

Tiina Puukkoniemi, Authorised Public Accountant, Authorised Sustainability Auditor (ASA), as the Auditor with principal

responsibility and responsible Sustainability Auditor. The Auditor and Sustainability Auditor shall be reimbursed against an

invoice approved by the Company.

Board authorisations

The AGM authorised the Board of Directors to decide on the repurchase of a maximum of 16,000,000 of the Company’s own

shares (approx. 9.8% of all shares of the Company) in one or several instalments. The shares shall be repurchased with funds

from the Company's unrestricted shareholders’ equity, and the repurchases shall reduce funds available for distribution of

profits. The authorisation will be valid until 30 June 2025, and it terminates the corresponding authorisation granted by the

AGM 2023. The shares shall be repurchased to develop the Company’s capital structure, to carry out or finance potential

corporate acquisitions or other business arrangements or agreements, to be used as a part of the Company’s incentive

programme or to be otherwise conveyed further, retained as treasury shares, or cancelled.

The AGM authorised the Board of Directors to decide on the issuance of new shares and the conveyance of the Company's

own shares held by the Company (treasury shares) and the issuance of option rights and other special rights entitling to

shares as specified in Chapter 10, Section 1 of the Finnish Companies Act. Option rights and other special rights entitling to

shares as specified in Chapter 10, Section 1 of the Finnish Companies Act may not be granted as part of the Company’s

incentive programme. The Board will be entitled to decide on the issuance of a maximum of 16,000,000 new shares (approx.

9.8% of all shares of the Company) as well as conveyance of a maximum of 21,000,000 treasury shares held by the Company

in one or several instalments. The issuance of shares, the conveyance of treasury shares and the granting of option rights and

other special rights entitling to shares may be done in deviation from the shareholders’ pre-emptive right (directed issue). The

authorisation will be valid until 30 June 2025, and it will replace the corresponding authorisation granted by the AGM 2023.


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Executive Management Team

In 2024, Sanoma’s Executive Management Team consisted of the following members: Rob Kolkman (President and CEO as of

1 January 2024), Alex Green (CFO) and Pia Kalsta (CEO of Media Finland).

Related party transactions

Sanoma has a Related Party Policy, under which members of the Board of Directors, the Executive Management Team and

the SBU management teams are under obligation to submit certain related party transactions, as defined in the Policy, for a

prior approval. In addition, the Board Charter includes instructions for Board members’ conduct in related party transactions

and other conflict of interest situations.

Sanoma reports related party transactions in accordance with IFRS. More information on transactions with related parties is

available in the Consolidated Financial Statements, Note 6.1.

Annual General Meeting 2025

The Annual General Meeting 2025, is planned to be held on Tuesday, 29 April 2025, in Helsinki. The shareholders of the

Company and their proxy representatives can also exercise the shareholder’s rights by voting in advance as well as by

submitting counterproposals and asking questions in advance in accordance with the instructions set out in the Notice to the

Annual General Meeting of the Company published on 11 February 2025. More information is available on Sanoma’s website.

Dividend proposal

On 31 December 2024, Sanoma Corporation’s distributable funds were EUR 338 million, of which profit for the year made up

EUR -1 million. Including the fund for non-restricted equity of EUR 210 million, the distributable funds amounted to EUR 548

million. The Board of Directors proposes to the Annual General Meeting that:

■ A dividend of EUR 0.39 per share shall be paid for the year 2024. The dividend shall be paid in three equal instalments.

The first instalment of EUR 0.13 per share shall be paid to a shareholder who is registered in the shareholders’ register of

the Company maintained by Euroclear Finland Ltd on the dividend record date 2 May 2025. The payment date for this

instalment is 9 May 2025. The record date for the second instalment of EUR 0.13 per share will be decided by the Board of

Directors in September, and the estimated payment date will be in September 2025. The record date for the third

instalment of EUR 0.13 per share will be decided by the Board of Directors in October, and the estimated payment date

will be in November 2025.

■ The amount left in equity shall be EUR 484 million.

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

When proposing a dividend to the AGM, the Board of Directors looks at the general macroeconomic environment, Sanoma’s

current and target capital structure, Sanoma’s future business plans and investment needs, as well as both the previous year’s

cash flows and expected future cash flows affecting capital structure.

Shares and shareholders

Sanoma has one series of shares, with all shares producing equal voting rights and other shareholder rights. The shares have

no redemption and consent clauses, nor any other transfer restrictions. Sanoma share has no nominal value or book value.

Share capital

At the end of December 2024, Sanoma’s registered share capital was EUR 71.3 million (2023: 71.3), and the total number of

shares was 163,565,663 (2023: 163,565,663), including 349,690 (2023: 298,045) of its own shares. Sanoma’s own shares

represented 0.2% (2023: 0.2%) of all shares and votes. The number of outstanding shares excluding Sanoma’s own shares

was 163,215,973 (2023: 163,267,618).

In March 2024, Sanoma delivered a total of 214,554 (2023: 89,850) of its own shares (without consideration and after taxes)

as part of its long-term share-based incentive plans.

Acquisition of own shares

On 31 October, Sanoma announced that it would start to repurchase the Company's own shares on the basis of the

authorisation given by the 2024 Annual General Meeting. The shares shall be repurchased to be used as part of Sanoma’s

incentive programme. The maximum number of shares to be acquired is 720,000, corresponding to 0.44% of the total number

of shares. The maximum sum to be used for the repurchase is EUR 5.9 million. The shares shall be acquired in public trading

on Nasdaq Helsinki Ltd. at the market price prevailing at the time of purchase. The share repurchase started on 1 November

2024, and will end by 30 June 2025, at the latest. By 31 December 2024, Sanoma had acquired a total of 275,899 of its own

shares.

Share trading and performance

At the end of December 2024, Sanoma’s market capitalisation was EUR 1,251.9 million (2023: 1,134.7) with Sanoma’s share

closing at EUR 7.67 (2023: 6.95). In January–December 2024, the volume-weighted average price of Sanoma’s share on

Nasdaq Helsinki Ltd. was EUR 6.90 (2023: 7.58), with a low of EUR 6.27 (2023: 5.91) and a high of EUR 7.80 (2023: 10.30).

In January–December 2024, the cumulative value of Sanoma’s share turnover on Nasdaq Helsinki Ltd. was EUR 80 million

(2023: 166). The trading volume of 12 million shares (2023: 22) equalled an average daily turnover of 46,400 shares (2023:

87,200). The traded shares accounted for some 7% (2023: 13%) of the average number of shares. Sanoma’s share turnover,

including alternative trading venues, CBOE DXE, Turquoise and Frankfurt, was 14 million shares (2023: 26). Nasdaq Helsinki

represented 83% (2023: 83%) of the share turnover. (Source: Euroland, Nasdaq Helsinki)


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Ownership structure and shareholders

The Board of Directors is not aware of any effective agreements related to holdings in Sanoma shares and the exercise of

voting rights.

Sanoma had 24,315 (2023: 24,466) registered shareholders at the end of December 2024.

On 31 December 2024, the combined holdings in the Company’s shares of the members of the Board of Directors, the

President and CEO, and the bodies they control (as referred to in Chapter 2, Section 4 of the Finnish Securities Market Act)

accounted for 0.5% (2023: 0.9%) of all shares and votes. More information on management shareholding and remuneration is

available in the Consolidated Financial Statements, Note 6.3.

Major shareholders 31 December 2024


	Shareholder	Shares	% of shares
1	Jane and Aatos Erkko Foundation	39,820,286	24.35
2	Holding Manutas Oy	21,870,000	13.37
3	Langenskiöld Robin	12,273,371	7.50
4	Seppälä Rafaela	7,654,746	4.68
5	Varma Mutual Pension Insurance Company	5,538,352	3.39
6	Helsingin Sanomat Foundation	4,701,570	2.87
7	Ilmarinen Mutual Pension Insurance Company	4,073,424	2.49
8	Noyer Alex	3,213,277	1.96
9	Elo Mutual Pension Insurance Company	2,284,722	1.40
10	Bernardin-Aubouin Lorna	1,852,470	1.13
11	The State Pension Fund	1,760,000	1.08
12	Foundation for Actors' Old-Age Home	1,600,000	0.98
13	Evli Finnish Small Cap Fund	1,032,536	0.63
14	Säästöpankki Kotimaa Mutual Fund	864,139	0.53
15	Stiftelsen för Åbo Akademi	800,000	0.49
16	Samfundet Folkhälsan i Svenska Finland	764,389	0.47
17	Overseas Cattle Company Oy Ltd	700,000	0.43
18	Langenskiöld Christoffer	645,996	0.39
19	Langenskiöld Sebastian	645,963	0.39
20	Langenskiöld Pamela	645,963	0.39
	20 largest shareholders total	112,741,204	68.93
	Nominee registered	16,374,195	10.01
	Other shares	34,450,264	21.06
	Total	163,565,663	100.00


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Shareholders by number of shares held 31 December 2024


Number of shares	Number of shareholders	%	Number of shares	%
1–100	8,820	36.27	401,605	0.25
101–500	8,720	35.86	2,391,164	1.46
501–1,000	2,945	12.11	2,305,215	1.41
1,001–5,000	3,004	12.35	6,574,870	4.02
5,001–10,000	411	1.69	2,939,066	1.80
10,001–50,000	299	1.23	5,713,380	3.49
50,001–100,000	45	0.19	3,308,115	2.02
100,001–500,000	45	0.19	9,329,713	5.70
500,001 +	26	0.11	130,523,086	79.80
Total	24,315	100.00	163,486,214	99.95
In the joint book-entry account			79,449	0.05
Number of shares issued			163,565,663	100.00

Holdings by sector 31 December 2024


Sector	Shareholders		Shares and votes
	Number	%	Number	%
Private companies	806	3.31	5,590,734	3.42
Financial and insurance institutions	53	0.22	27,112,303	16.58
Public sector organisations	23	0.09	14,100,835	8.62
Households	22,974	94.48	44,010,471	26.91
Non-profit organisations	310	1.27	50,971,422	31.16
Foreigners	149	0.61	21,700,449	13.27
Total	24,315	100.00	163,565,663	100.00
In the joint book-entry account			79,449	0.05
Number of shares issued			163,565,663	100.00

Events after the reporting period

On 20 January 2025, Sanoma announced that it had acquired a portfolio of learning materials for secondary and vocational

education from Finnish publisher Edita Oppiminen Oy, which had made a decision to discontinue its learning material

publishing business. The acquired product offering complements Sanoma’s current product portfolio for secondary and

vocational education in Finland. In 2024, pro forma net sales of the acquired portfolio amounted to approx. EUR 4 million. No

employees transferred from the seller to Sanoma with the transaction.

On 15 January 2025, the Shareholders’ Nomination Committee proposed to the Annual General Meeting 2025, that the

number of the members of the Board of Directors is set at nine. The Nomination Committee also proposed that Pekka Ala-

Pietilä, Klaus Cawén, Julian Drinkall, Rolf Grisebach, Anna Herlin, Sebastian Langenskiöld and Eugenie van Wiechen are re-

elected as members of the Board of Directors. Mika Ihamuotila informed that he does not stand for re-election to the Board.

Consequently, the Nomination Committee proposed that Jannica Fagerholm and Timo Lappalainen be elected as new

members of the Board. In addition, the Shareholders’ Nomination Committee has proposed that Pekka Ala-Pietilä is elected as

the Chair and Klaus Cawén as the Vice Chair of the Board of Directors. The proposed Board members have all given their

consent to being elected. The term of all the Board members ends at the end of the Annual General Meeting 2026. The

Shareholders’ Nomination Committee also proposed that the monthly remuneration and meeting fees payable to the members

of the Board of Directors remain unchanged, while the meeting fees of the members of the Board Committees are to be

increased by EUR 1,000 / meeting for the Committee chairs and by EUR 500 / meeting for the Committee members. Essential

biographical information on all Board member candidates is available on Sanoma’s website.

Alternative performance measures

Sanoma presents certain financial performance measures on a non-IFRS basis as alternative performance measures (APMs).

Sanoma considers that these alternative performance measures provide useful and relevant supplemental information to the

management and investors on Sanoma’s financial performance, financial position or cash flows. Some APMs exclude certain

non-operational or non-cash valuation items affecting comparability (IACs) and are provided to reflect the underlying business

performance and to enhance comparability between reporting periods. The APMs should not be considered as a substitute for

performance measures in accordance with IFRS.

Definitions of key IFRS indicators and APMs are available on p. 87. Reconciliations are available on p. 88.


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Sustainability Statement

General information

ESRS 2 General Disclosures

Basis of preparation

BP-1 General basis for preparation of the Sustainability Statement

Sanoma's Sustainability Statement (“Sustainability Report” as per the Finnish Accounting Act) has been prepared in

accordance with the Corporate Sustainability Reporting Directive (EU) 2022/2464 and the European Sustainability Reporting

Standards (ESRS) defined in the Commission Delegated Regulation (EU) 2023/2772, the requirements of Chapter 7 of the

Finnish Accounting Act on sustainability reporting, and the EU Taxonomy legislation (2020/852).

The Sustainability Statement has been prepared on a consolidated basis and comprises Sanoma Corporation and its

subsidiaries. The scope of consolidation is the same as for the Consolidated Financial Statements. Aligned with the Financial

Statements, the figures include joint operations according to the Sanoma’s ownership share exceeding 50%. ownership share

(50%).

The reported topics are based on Sanoma’s double materiality assessment process conducted in 2024. The identified material

impacts, risks and opportunities cover Sanoma’s own operations as well as the upstream and downstream value chain. For

the upstream value chain, the statements cover information on Sanoma’s tier 1 suppliers. In addition, Sanoma traces and

monitors the origin of its purchased materials further in the supply chain to tier 2 suppliers. For downstream value chain, the

statements cover information extending to consumers and end-users.

No information corresponding to intellectual property, know-how or the results of innovation has been omitted from the

Sustainability Statement. Sanoma has not either omitted from disclosure of any impending developments or matters that are

currently in the course of negotiation.

BP-2 Disclosures in relations to specific circumstances

Sanoma’s Sustainability Statement fulfils the characteristics of specific circumstances for the disclosures described below.

Time horizons

The European Sustainability Reporting Standards (ESRS) recommends to adopt the following time horizons: short-term time

horizon being the reporting period in the financial statements, medium-term time horizon being from 1–5 years and long-term

time horizon being more than 5 years. Sanoma deviates from the ESRS 1 definitions of medium- and long-term time horizons

as it has used in its reporting the same time horizons as in the Company's Enterprise Risk Management (ERM) process. In its

sustainability reporting, Sanoma’s has used the following time horizons: short-term one year, medium-term 1-3 years and long-

term 3 years and beyond.

Value chain estimation

Sanoma’s reporting includes data mainly from own operations, and the reporting is based on Sanoma’s policies and standards

as well as actions and targets related to their implementation. The emissions data for Scope 3 related to categories 1, 4, 5 and

7 is partially estimated using indirect sources. 33% of Sanoma’s Scope 3 greenhouse gas (GHG) emissions are calculated

using non-primary data. The methodology is described in more detail in section E1-6. Sanoma evaluates the accuracy level of

the data to be sufficient. Methods of collecting GHG emission data from suppliers are continuously improved by cooperating

with suppliers and developing standardised methods for data collection.

Sources of estimation and outcome uncertainty

No monetary amounts or quantitative metrics in Sanoma’s reporting are subject to a high level of measurement uncertainty.

Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements

Sanoma uses the GHG Protocol for emissions calculations, and its climate targets are validated by the Science Based Targets

initiative (SBTi). Entity-specific metrics are partially based on the 2016 or newer version of the Global Reporting Initiative (GRI)

Standards for each material topic standard: E5 Resource inflows (GRI 301-1 Materials) as well as S4 Customers and end-

users (GRI 417-3 Marketing and labelling, GRI 418-1 Customer Privacy). For S4 Customers and end-users, the Company has

utilised the Sustainability Accounting Standard Board’s (SASB) Media & Entertainment, Advertising & Marketing (Media

Pluralism, Journalistic Integrity & Sponsorship Identification, Intellectual Property Protection & Media Piracy, Data Privacy,

Advertising Integrity) and Education (Data Security, Quality of Education & Gainful Employment) sectors’ Sustainability

Accounting Standards as inspiration.

Use of phase-in provisions in accordance with Appendix C of ESRS 1

Sanoma applies the phase-in provisions for the following data requirements:

■ ESRS 1, 10.3 Transitional provision related to section 7.1 Presenting comparative information

■ ESRS 2 SBM-1 40 (b) (breakdown of total revenue by significant ESRS sector) and (c) (list of additional significant ESRS

sectors)

■ ESRS 2 SBM-3 48 (e) (anticipated financial effects)

■ ESRS E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related

opportunities

■ ESRS E4-6 Anticipated financial effects from biodiversity and ecosystem-related risks and opportunities

■ ESRS S1-7 Characteristics of non-employees in the undertaking’s own workforce

■ ESRS S1-13 Training and skills development metrics

■ ESRS S1-14 Health and safety data points on cases of work-related ill health and on number of days lost to injuries,

accidents, fatalities and work-related ill health as well as health and safety data related to non-employees.


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Minimum disclosure requirement MDR-M 77b

No metrics presented in this report have been validated by an external body other than the assurance provider. The only

exception to this is the entity-specific metric related to the Employee Engagement Survey under S1, which is carried out

entirely by a third-party service provider. In addition, Sanoma’s climate targets have been third-party validated by the Science

Based Targets initiative.

Sustainability governance

GOV-1 The role of the administrative, management and supervisory bodies

The composition, diversity and expertise of the administrative, management and supervisory bodies

Information on the composition of the administrative, management and supervisory bodies of the undertaking and the diversity

of their members at 31 December 2024:

Table 1. Number of executive and non-executive Board members


	2024
Executive members	0	0%
Non-executive board members	8	100%
Total	8	100%

The numbers presented above include the Audit Committee as its members are also members of the Board of Directors.

Sanoma does not have representation of employees and other workers in its administrative, management and supervisory

bodies.

Table 2. Gender distribution of the members of the Board of Directors


	Female		Male		Others		Not Disclosed		Total
	Headcount	%	Headcount	%	Headcount	%	Headcount	%	Headcount	%
Members of the Board	2	25%	6	75%	0	0%	0	0%	8	100%

Table 3. Other information on the members of the Board of Directors


	2024
Board's gender ratio	0.3
Share of independent Board members	88%

The Board’s gender ratio is calculated by dividing the number of female Board members by the number of male Board members.

All Board members were independent of the Company, but one member is non-independent of a major shareholder. For the

Audit Committee, the gender ratio was 0 as all four members were male, and the share of independent members 100%.

The competences, experience and knowledge required for the Board composition is set out in the Charter of the Shareholders’

Nomination Committee. Together with the Board Charter and the Diversity and Inclusion Policy, it establishes that diversity

aspects are taken into account. In addition, the Board of Directors’ Human Resources Committee discusses the composition

and succession of the Board. The Finnish Corporate Governance Code also has requirements related to Board composition

and diversity.

According to Sanoma’s Corporate Governance Statement, the Board of Directors must collectively have sufficient knowledge

of and competence in:

■ the learning and media business with current and potential future geographical reach,

■ the management of a public company of corresponding size, good corporate governance, corporate and financial

administration and internal control and risk management,

■ strategic work as well as mergers and acquisitions,

■ technology, including digitalisation and the ethical use of artificial intelligence (AI) in consumer and publishing products,

and

■ sustainability, including environmental, social and governance aspects.

In order to ensure that the Board has sufficient and versatile competencies, mutually complementing experience and

knowledge of the industry for the needs of Sanoma expressed in the strategy at any given time, the Shareholders’ Nomination

Committee considers a range of diversity aspects, such as business experience, international experience, nationality, age,

education and gender, when preparing its proposal of the composition of the Board to the Annual General Meeting (AGM).

Until 17 April 2024, the members of the Board of Directors were Pekka Ala-Pietilä (Chair), Julian Drinkall, Rolf Grisebach,

Anna Herlin, Mika Ihamuotila, Nils Ittonen (Vice Chair), Denise Koopmans, Sebastian Langenskiöld and Eugenie van

Wiechen.

On 17 April 2024, the AGM elected the following members to the Board of Directors: Pekka Ala-Pietilä (Chair), Klaus Cawén

(Vice Chair), Julian Drinkall, Rolf Grisebach, Anna Herlin, Mika Ihamuotila, Sebastian Langenskiöld and Eugenie van Wiechen.

In its organisation meeting held after the AGM, the Board of Directors decided to appoint from among its members Rolf

Grisebach (Chair), Klaus Cawén, Mika Ihamuotila and Sebastian Langenskiöld to its Audit Committee.


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Table 4. Gender distribution of Executive Management Team (EMT)


	Female		Male		Others		Not Disclosed		Total
	Headcount	%	Headcount	%	Headcount	%	Headcount	%	Headcount	%
Members of the EMT	1	33%	2	67%	0	0%	0	0%	3	100%

Table 5. Other information on the members of the Executive Management Team


	2024
EMT's gender ratio	0.5

The EMT’s gender ratio is calculated by dividing the number of female EMT members by the number of male EMT members.

The Executive Management Team (EMT) remained unchanged during the reporting period and included Rob Kolkman

(President and CEO, Chair of the EMT), Alexander Green (CFO) and Pia Kalsta (CEO, Media Finland).

The roles and responsibilities of the administrative, management and supervisory bodies

In its operations and governance, Sanoma follows the laws and regulations applicable in its operating countries, the ethical

guidelines set by the Sanoma Code of Conduct as well as the Group’s internal policies and standards. Sustainability is

embedded to Sanoma’s governance, strategy and business model. The sustainability governance and management model is

defined in Sanoma’s Sustainability and Human Rights Policy. From the sustainability governance perspective, Sanoma’s

administrative body is the Board of Directors, the management body the President and CEO supported by the EMT, and the

supervisory body the Board of Directors’ Audit Committee. In addition, the Board of Directors’ Human Resources Committee

supports the Board is human resources related tasks, such as compensation and performance evaluation of the President and

CEO and key executives, Group compensation and human resources policies and practices as well as the target setting for

short- (STI) and long-term incentives (LTI).

Board of Directors

Sanoma’s Board of Directors is responsible for the management of the Company and its business operations. The Board of

Directors of Sanoma Corporation has a Charter to govern its work. The basis for the duties of the Board of Directors is set

forth in the Finnish Limited Liability Companies Act. In addition to being the ultimate decision-maker on the long-term goals

and business strategy of the Group, Sanoma’s Board of Directors is responsible for

■ the approval of strategic sustainability guidelines and sustainability management model,

■ the appropriate arrangement of the control of the sustainability reporting and its assurance,

■ the oversight of sustainability-related impacts, risks and opportunities,

■ the approval of the Sustainability and Human Rights Policy, which is supported by internal policies, standards and

manuals,

■ the approval of the statutory Sustainability Statement, and

■ the review of the double materiality assessment process and the approval of its outcomes.

Audit Committee

The Board of Directors’ Audit Committee acts as Sanoma’s Sustainability Committee and supports the Board in overseeing

sustainability-related impacts, risks and opportunities. The Audit Committee reviews Sanoma’s sustainability progress and

monitors the implementation of the Sustainability Strategy through regular updates it receives from the management.

President and CEO and the Executive Management Team

The President and CEO is responsible for the implementation of strategic sustainability guidelines. The EMT supports the

President and CEO in assessing and validating sustainability-related impacts, risks and opportunities and outlining Sanoma’s

strategic approach to sustainability, managing sustainability development, and monitoring regularly how sustainability is

reflected in the business units. The Chief Financial Officer (CFO), who is a member of the EMT, is responsible for

sustainability on the management level.

The President and CEO and the Executive Management Team (EMT) are ultimately responsible for ensuring that Sanoma

employees are aware of and comply with the Group policies. In addition, the President and CEO approves the Group-level

standards.

The EMT supports the President and CEO in duties related to coordinating the Group’s management and preparing

sustainability-related matters to be discussed at the Audit Committee meetings. The Board receives a summary of the Audit

Committee meetings, and can address the topics in its meetings if relevant.

The Board of Directors, the Human Resources Committee and the EMT approve the annual short-term incentive targets and

performance outcomes that also include targets related to Sanoma’s material impacts, risks and opportunities. The

sustainability-related performance in incentive schemes are presented in more detail in section ESRS 2 GOV-3. In addition,

the long-term sustainability targets that are part of Sanoma’s sustainability scorecard are monitored annually as part of the

review of the Annual Report. The sustainability scorecard includes targets related to material impacts, risks and opportunities.

Sanoma monitors sustainability progress both on the Group and strategic business unit (SBU) levels and identifies

sustainability related impacts, risks and opportunities as part of the Group-wide double materiality assessment and annual

Enterprise Risk Management process. Sanoma hosts internal sustainability-related working groups to support the

implementation of the strategic sustainability guidelines, where relevant. The Group Sustainability team supports the Group

and SBUs in target achievement, project implementation and communications. Controls and procedures related to the

management of impacts, risks and opportunities are defined in relevant functions. Group-level controls and procedures are

applied to the Sustainability Statement reporting process.

Sanoma’s Board of Directors, including the Audit Committee, has been trained on sustainability matters related to the

European Sustainability Reporting Standards (ESRS) directive. In addition, some Board members have experience from

sustainability topics for example related to their role in an environmental organisation.


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The EMT is responsible for allocating appropriate skills and expertise related to sustainability matters at the Group and SBU

levels. The EMT consults internal experts, such as the members of the Sustainability and Ethics Working Group, on material

sustainability topics and related impacts, risks and opportunities.

The Sustainability and Ethics Working Group consists of selected members across the Group representing all material

sustainability topics. It evaluates sustainability-related impacts, risks and opportunities, monitors the implementation of the

Sustainability Strategy and coordinates related development work and actions as well as ethics and compliance.

Disclosure Requirement related to ESRS 2 G1 GOV-1 – The role of the administrative, management and supervisory

bodies

The Board of Directors, including the members of the Audit Committee, have approved all of Sanoma’s policies related to

business conduct. The EMT is responsible for the implementation of these policies. The policies related to business conduct

are presented in section G1-1. According to the Charter of the Shareholders’ Nomination Committee, the Board of Directors

must collectively have sufficient knowledge of, and competence in the management of a public company of corresponding

size, good corporate governance, corporate and financial administration and internal control and risk management.

GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative,

management and supervisory bodies

The Board of Directors, the Audit Committee and the EMT regularly discuss matters related to Sanoma’s material

sustainability topics. The Board of Directors approves Sanoma’s double materiality assessment and Sustainability Statement.

In 2024, the Audit Committee received five updates on material sustainability impacts, risks and opportunities, and the Board

of Directors received eight updates. The Board receives a summary of the Audit Committee meetings, and can address the

topics in its meetings if relevant. As sustainability is embedded into Sanoma’s operations, it is also included in the operative

and business updates to the Board. The updates are given by the CFO or the Head of Investor Relations and Sustainability,

who reports to the CFO. In addition, as described in section GOV-1, the Board’s Human Resources Committee addressed

human resources-related matters in each of their meetings, and these were summarised to the Board.

Sanoma’s sustainability performance is regularly discussed with the President and CEO and the EMT, prior to discussions with

the Audit Committee and communication to stakeholders. In 2024, the EMT received eight updates on material sustainability

impacts, risks and opportunities, mainly from the members of the Sustainability and Ethics Working Group. The Sustainability

and Ethics Working Group providers information on material sustainability topics and reviews the policies and standards

before they are reviewed and approved by the administrative, management and supervisory bodies.

The effectiveness of the sustainability-related policies, actions, metrics and targets are integrated into the sustainability

scorecard that is monitored annually by the Board of Directors, Audit Committee and the EMT as part of the review of the

Annual Report. In addition, the Ethics and Compliance Programme that monitors corporate culture, corruption and bribery-

related risks is reviewed by the Audit Committee twice a year.

Sanoma aims to identify, prevent and mitigate potential and actual negative impacts on people and environment. These

include social and environmental impacts connected with Sanoma’s own operations as well as its upstream and downstream

value chain through its products, services or business relationships. The due diligence process, included in Sanoma’s

Sustainability and Human Rights Policy, is defined in the UN Guiding Principles on Business and Human Rights and the

OECD Guidelines for Multinational Enterprises. Sanoma’s Procurement team regularly conducts due diligence as part of its

supplier assessment process.

Sustainability-related impacts, risks and opportunities as well as potential trade-offs are considered by the administrative,

management and supervisory bodies when overseeing Sanoma’ strategy or related to major transactions. When overseeing

the strategy, impacts, risks and opportunities are taken into account in decision-making to ensure that they support the

strategy. In major transactions, the due diligence process is led by Sanoma’s M&A team, and the EMT and Board consider its

outcome, as well as related impacts, risks and opportunities in its decision-making. The frequency of this process is case-

dependent. Where there is a gap, an integration plan is initiated so that the matter is aligned with Sanoma's operations.

Sustainability-related risks are assessed in Sanoma’s double materiality assessment, and as part of Sanoma’s Enterprise Risk

Management processes. The EMT reviews the risk map and risk management process, and the Audit Committee approves

them. The bodies ensure that the risk map includes relevant sustainability-related impacts, risks and opportunities and that the

risk management process supports the mitigation of these risks.

Sanoma’s management of sustainability and human rights impacts is based on targeted measures on areas with the highest

risks. If Sanoma cannot address the impacts immediately, the due diligence process allows for actions to be prioritised based

on the severity and likelihood of the impacts.

In 2024, the administrative, management and supervisory bodies reviewed the progress of the Corporate Sustainability

Reporting Directive project at Sanoma, and participated in the double materiality assessment process that included reviewing,

validating and approving material impacts, risks and opportunities.


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The following sustainability-related topics covering material impacts, risks and opportunities were discussed during the

reporting year:

The Board of Directors and Audit Committee:

■ Materiality assessment: approval of the double materiality assessment1)

■ Policy approval: new Sustainability and Human Rights Policy and People Policy2) and updated Code of Conduct, IPR

Policy, Anti-Bribery and Corruption Policy, Privacy and Data Protection Policy and Procurement Policy

■ Performance monitoring: Ethics and Compliance Programme3), Privacy Programme4) and sustainability-related STIs

(people, climate and privacy topics)

■ Sustainable finance development: approval of the issuance of the EUR 150 million Social Bond, review of the Social Bond

Framework and monitoring of ESG ratings

■ Internal audit: sustainability reporting readiness assessment

The President and CEO and the Executive Management Team:

■ Materiality assessment: approval of the double materiality assessment1)

■ Policy review: new Sustainability and Human Rights Policy and People Policy2) and updated Code of Conduct, IPR Policy,

Anti-Bribery and Corruption Policy, Privacy and Data Protection Policy and Procurement Policy

■ Standards review and approval: new Environmental Standard5) and Supplier Code of Conduct

■ Performance monitoring: Ethics and Compliance Programme3), Privacy Programme4) and sustainability-related STIs

(people, climate and privacy topics)

■ Sustainable finance development: Social Bond, Social Bond Framework and ESG ratings monitoring

■ Regulatory monitoring related to sustainability reporting, due diligence, deforestation, artificial intelligence, privacy and

accessibility regulation

■ Internal audit: sustainability reporting readiness assessment

1) The double materiality assessment includes sustainability-related impacts, risks and opportunities. The list of IROs are presented in SBM-3.

2) The People Policy includes material impacts related to own workforce. The list of IROs are presented in SBM-3 in the Own Workforce section.

3) The Ethics and Compliance Programme includes corporate culture and corruption and bribery-related risks.

4) The Privacy Programme includes the development of the responsible use of personal data and artificial intelligence. Privacy is incorporated into

Sanoma’s product and business development through a ‘Privacy and Security by Design’ process.

5) The Environmental Standard covers climate, biodiversity, resource use, energy and waste related topics.

GOV-3 and GOV-3 E1 Integration of sustainability-related performance in incentive schemes

Sanoma has performance-based incentive schemes that cover the Company’s management bodies and personnel.

Sustainability targets are embedded into the short-term incentives of the executive management. In 2024, alongside financial

metrics, sustainability targets constituted 20% of the total annual short-term incentives for the members of the EMT at the

target level. 10% out of the overall targets were linked to the Employee Engagement Survey (EES), 5% to internal data and

privacy targets and 5% to the climate targets.

The EES is a key component of the sustainability metrics, reflecting Sanoma’s focus on employee well-being. Privacy-related

metrics covered the standardisation of processes for managing privacy and conducting Privacy Impact Assessments for new

products. Climate targets were linked to the Science Based Targets initiative (SBTi), which drives ambitious climate action in the

private sector. In practice, the EMT members' incentives were linked to Sanoma’s SBTi emissions reduction targets for Scopes 1, 2

and 3. These targets have been described in detail under E1-4. The Board of Directors’ Human Resources Committee reviews and

approves the incentive schemes, including the sustainability targets, annually. Sanoma’s sustainability administrative and

supervisory bodies, the Audit Committee and the Board of Directors, do not have performance-based incentives related to

sustainability.

GOV-4 Statement on due diligence

Due diligence is the process by which Sanoma identifies, prevents, mitigates and accounts for how it addresses potential and

actual negative impacts on the environment and people. This process is also defined in the international instruments of the UN

Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Sanoma’s due

diligence process is defined in the Sustainability and Human Rights Policy and included into relevant operating policies.


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Table 6. Locations of core elements of due diligence disclosures in the Sustainability Statement


Core elements of due diligence	Paragraphs in the Sustainability Statement
a) Embedding due diligence in governance, strategy and business model	ESRS 2 GOV-2 ESRS 2 GOV-3 ESRS 2 GOV-3 E1 ESRS 2 SBM-3 E1 SBM-3 E4 SBM-3 S1 SBM-3 S2 SBM-3 S4 SBM-3
b) Engaging with affected stakeholders in all key steps of the due diligence	ESRS 2 GOV-2 ESRS 2 SBM-2 S1-SBM-2 S2-SBM-2 S4-SBM-2 ESRS 2 IRO-1 E1-2 E4-2 E5-1 S1-1 S2-1 S4-1 G1-1
c) Identifying and assessing adverse impacts	ESRS 2 IRO-1 E1-IRO-1 E2-IRO-1 E3-IRO-1 E4-IRO-1 E5-IRO-1 G1-IRO-1 ESRS 2 SBM-3 E1 SBM-3 E4 SBM-3 S1 SBM-3 S2 SBM-3 S4 SBM-3
d) Taking actions to address those adverse impacts	E1-1, E1-3 E4-1, E4-3 E5-2 S1-4 S2-4 S4-4 G1-1, G1-2, G1-3
e) Tracking the effectiveness of these efforts and communicating	E1-4, E1-5, E1-6 E4-4 E5-3, E5-4, E5-5 S1-5, S1-6, S1-8, S1-9 , S1-10 , S1-11, S1-14, S1-15, S1-16, S1-17 S2-5 S4-5 G1-4

GOV-5 Risk management and internal controls over sustainability reporting

Sanoma has defined the roles and responsibilities related to sustainability reporting and management in its Sustainability and

Human Rights Policy. The Board of Directors of Sanoma is responsible for the appropriate arrangement of the risk

management and controls of sustainability reporting and its verification, the oversight of sustainability-related impacts, risks

and opportunities, the approval of the statutory Sustainability Statement, the review of the double materiality assessment

process and the approval of its outcomes. Sustainability-related risks are also reviewed as part of Sanoma’s Enterprise Risk

Management process, which also contributed to Sanoma’s double materiality assessment during 2024. Risks related to

sustainability reporting are managed through developing internal controls and processes.

Sanoma’s governance, management, processes and operations, including sustainability-related topics, are subject to separate

internal audits every year, following the Internal Audit Policy. Internal audit operates independently, reporting directly to the

Audit Committee of the Board of Directors. Internal audits are based on an annual plan and the results of the inspections and

the follow-up of possible observations are reported to the Audit Committee. Internal audit reports contain a description of the

audit, findings and recommendations, and follow the Global Internal Audit Standards. Each auditee, representing relevant

internal functions, provides comments, corrective actions and responsible persons for the observations.

During 2024, internal audit performed a readiness assessment for Sanoma’s statutory sustainability reporting. The

assessment was conducted by e.g. interviewing internal stakeholders involved in the reporting process. The scope of the

assessment was the project to prepare for the Corporate Sustainability Reporting Directive (CSRD). According to the findings,

Sanoma is well prepared towards compliance with the CSRD requirements. No major risks were identified in either the internal

audit or overall risk assessment of the reporting process. Minor risks were related to e.g., Sanoma’s ability to retrieve all data

in a timely manner. In these cases, estimates and phase-in opportunities for the reporting are used.

Sustainability strategy

SBM-1 Strategy, business model and value chain

Strategy and sustainability-related goals

Sanoma’s strategy aims for sustainable, profitable growth through producing printed and digital learning products and

services, and journalistic media, entertainment and advertising. Sanoma’s ambition is to increase the Group’s net sales to over

EUR 2 billion by 2030, with at least 75% coming from the learning business.

In the learning business, significant groups of products and services offered include a portfolio of printed and digital learning

products and services. Significant markets and customer groups served include primary, secondary and vocational education

(K12) i.e., 6–18 year-old students. Primary customers are teachers and schools. Sanoma has learning businesses in the

Netherlands, Spain, Poland, Italy, Belgium, Finland, Sweden, Norway, Denmark, Germany and the UK.

In the media business, significant groups of products and services offered include media products in multiple forms: printed

and digital domestic journalism including newspapers and magazines, entertainment through TV, audio, radio and events as

well as marketing opportunities through Sanoma’s reach and consumer insights for advertisers. Significant markets and

customer groups served include Finnish consumers, as Sanoma reaches almost all Finns every week according to Kantar


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Media Finland's Mind consumer survey. The survey is carried out in the Kantar Forum panel on a continuous basis. In addition

to consumers, primary customers of Sanoma’s media business include B2B customers.

At the end of 2024, Sanoma employed 5,267 professionals in total. The headcount is presented as a breakdown per country in

section S1-6 Characteristics of the undertaking’s employees. No significant changes in products and services offered or

markets and customer groups served took place during the reporting period.

The elements of Sanoma’s strategy, business model and value chain that relate to, or impact sustainability matters, are

compiled into Sanoma’s Sustainability Strategy, which focuses on environmental, social and governance topics and includes

sustainability-related commitments to the UN Sustainable Development Goals and the UN Global Compact Ten Principles, for

example. The key elements of Sanoma’s business model, strategy and value chain, exposing and enabling Sanoma’s

sustainability-related impacts, risks and opportunities, are summarised below using the structure of the six key topics of

Sanoma’s Sustainability Strategy. Sanoma’s sustainability-related goals in terms of significant groups of products and

services, customer categories, geographical areas and relationships with stakeholders, including an assessment of current

products and services, challenges and critical projects, are also summarised below.

■ Inclusive learning: Within its learning business, Sanoma has a positive impact on its customers' and end-users' access to

quality learning materials and education through printed and digital learning content, as well as digital learning and

teaching platforms for primary, secondary and vocational education. Sanoma aims to co-create high-quality and motivating

learning materials with teachers, to develop inclusive learning solutions that support diversity, accessibility and

differentiation and to promote equal access to education. Critical projects include continuous development of aspects

related to the inclusiveness of its products and to ensuring that all common accessibility components used in Sanoma’s

core digital learning products are compliant with the AA-level of the Web Content Accessibility Guidelines from 2025

onwards. Sanoma also aims to grow its learning business, and thus impact, organically and through acquisitions. These

goals apply to the entire Learning SBU operating across Europe.

■ Sustainable media: Within its Media Finland business, Sanoma has a positive impact on freedom of expression by providing

independent journalism, which promotes open democratic society. To ensure journalistic ethics, Sanoma’s key projects

include the monitoring and development of practices concerning aspects of news articles as defined in the Guidelines for

Journalists by The Council of Mass Media. Through its cross-media business model, Sanoma offers tailored marketing

solutions for business partners, which requires Sanoma to consider advertising-related ethics and impacts carefully. Sanoma

aims to ensure compliance with the Advertising and Marketing Communications Code of the International Chamber of

Commerce, with key projects and challenges related to the monitoring of the reliability of sustainability and green claims

within its platforms containing advertising. These goals apply to the entire Media Finland SBU, which operates in Finland.

■ Valued people: Sanoma’s success depends on having competent, skilled and engaged management and employees, and

on their competencies and skills in developing appealing products and services in accordance with customer needs in a

changing environment. This exposes Sanoma’s business model and strategy to dependencies related to its own

workforce, as recruiting and retaining skilled and motivated personnel may become increasingly difficult as a result of

various factors, including shortage of skills in the labour market and intensifying competition for talent. Sanoma aims to

promote equality and provide an inspiring workplace with excellent opportunities to develop. Key projects include

continuous development of corporate culture, for example through Sanoma’s DE&I programme and through monitoring of

employee engagement on an annual basis, with results also linked to executive and senior management remuneration.

These goals and actions apply to all Sanoma’s operations across Europe.

■ Trustworthy data: Data is an increasingly essential part of Sanoma’s business model, products and services in both

businesses. Sanoma holds large volumes of personal data, including the data of its own workforce as well as customers

and end-users, such as media consumers, and students and teachers in Learning. This exposes Sanoma to privacy risks

and requires it to consider carefully its processes for implementing data subject rights and demonstrating accountability for

compliance with the GDPR. Sanoma is also exposed to potential data breaches resulting from unauthorised or accidental

loss of, or access to personal data managed by Sanoma or by third parties processing data on Sanoma’s behalf. At

Sanoma, artificial intelligence (AI) is also used for, among other things, providing journalistic recommendations,

personalised features in entertainment, and adaptive learning solutions. Applications of generative AI may bring

opportunities related to efficiency, personalisation and support in delivering quality products, with risks including the

misuse of the data and content. To mitigate data and privacy risks, Sanoma continuously develops trustworthy use of the

learning and media customers' data. Key projects include implementing Sanoma’s Privacy Programme and Privacy and

Security by Design process to ensure that privacy and data protection is built into Sanoma’s products. To mitigate AI-

related risks, Sanoma continuously develops its digital and hybrid learning and media products and services with key

projects including e.g., up-to-date ethical AI principles and employee instructions as well as having the right technology in

place upfront. These goals and actions apply to all Sanoma’s operations across Europe.

■ Vital environment: Following its business model, Sanoma produces printed and digital learning and media products.

Sanoma’s printed products are produced either in its own operations, i.e., two newspaper printing houses in Finland, or by

upstream printing suppliers used for books and magazines. This exposes Sanoma to environmental impacts though the

use of resources. Key environmental impacts include the generation of GHG emissions as well as biodiversity impacts

especially through the use of paper. The use of resources, especially paper, also generates dependencies and causes

transition risks such as the availability of certified paper, availability of renewable energy and regulatory and customer

demand risks. In addition, risks include physical risks related to climate change hazards, such as flooding. Sanoma aims to

protect the climate and environment through its climate transition plan and biodiversity actions, with key projects focusing

on reducing its impacts and cooperating with suppliers especially in the upstream value chain. These goals and actions

apply to all Sanoma’s operations across Europe.

■ Responsible business practices: Good governance and ethics play a key role in Sanoma’s business model and value

chain in many ways. Third-party suppliers in Sanoma’s value chain include, among others, technology solution and service

providers, paper, print and logistics suppliers as well as content providers for both Learning and Media Finland. Sanoma’s

daily business is dependent on its ability to identify sources of supply that meet its standards, although Sanoma is not

dependent on any individual suppliers. Sanoma aims to follow strong business ethics, supply chain integrity and ethical

partnerships both within its own operations and throughout the supply chain. Key projects include the Ethics and

compliance programme as well as supplier risk management. Suppliers and other third parties are subject to a Know Your

Counterparty (KYC) process to identify risks related to anti-bribery, sanctions regulations and other issues. These goals

and actions apply to all Sanoma’s operations across Europe.


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Sanoma has assessed that its products and services as well as significant market and customer groups are aligned with the

sustainability-related goals. All impacts, risks and opportunities including Sanoma’s exposure, activities and goals to manage

them are further described under ESRS 2 IRO-1, ESRS 2 SBM-3 and topic-specific disclosures under E1 Climate change, E4

Biodiversity and ecosystems, E5 Resource use and circular economy, S1 Own workforce, S2 Workers in the value chain, S4

Customers and end-users and G1 Business conduct.

Business model and value chain

Upstream value chain

The actors in Sanoma’s upstream value chain include individuals and companies that supply Sanoma with the necessary

inputs to produce products and services for consumers and end-users. Sanoma’s Procurement team is responsible for the

management of the Company’s supply chain.

Sanoma’s main procurement categories are: content, paper & print, logistics, technology, facilities, HR & professional services,

marketing & sales as well as travel. To gather and secure inputs, the Procurement team actively cooperates with suppliers,

maintaining sustainable supplier relationships.

Content creation is needed for both learning and media businesses. In addition to in-house content creation, Sanoma buys

content creation from external resources, such as freelancers, to generate media and learning content. Content can be text,

illustrations or photographs, for example.

In its operations, Sanoma uses resources, particularly paper, for its printed products in both the learning and media

businesses. Logistics partners are used to transfer the materials to warehouses. Paper, print and logistics procurement are

categories with the most significant environmental impact.

As content use is increasingly moving to digital platforms, Sanoma collaborates with various technology and digital suppliers.

Data centres provide the infrastructure needed to support the Company's digital platforms, ensuring the availability, security,

and performance of its online services.

To promote its products and services, Sanoma also buys marketing and sales-related inputs from external agencies. In

addition, Sanoma buys HR-related services to support the well-being of its employees through, for example, occupational

healthcare services.

Own operations

Sanoma employs 5,267 professionals in total. The breakdown by geographical area is presented in the section S1-6. With the

support of the inputs from the upstream value chain, Sanoma’s employees create and develop products and services for its

customers and end-users.

Sanoma’s operations use energy, generate greenhouse gas emissions and impact biodiversity through materials use, and the

target is to minimise the environmental and climate impact across the value chain.

Downstream value chain

Downstream actors in the value chain acquire products and services from Sanoma. In addition, Sanoma uses distributors to

deliver its products to its customers, and third parties to process data on its behalf.

For schools and teachers, Sanoma provides printed and digital learning materials that support learning outcomes and

contribute to equal access to education.

For Finnish consumers, Sanoma delivers independent journalism that supports freedom of expression and increases people’s

awareness. Sanoma offers entertainment through TV and video, radio and audio as well as live events. For B2B customers,

Sanoma offers marketing solutions that contribute to economic growth.

For its employees, Sanoma aims to create a working environment and culture that inspires employees, values their diversity,

embraces their views and respects their individual rights.

For investors, Sanoma aims to offer opportunities for sustainable equity and debt investments. The issuance of the EUR 150

million Social Bond in 2024, further validated Sanoma’s strong impact on the UN Sustainable Development Goals, especially

Goal 4 Quality Education.

SBM-2, S1 SBM-2, S2 SBM-2 and S4 SBM-2 Interests and views of stakeholders

At Sanoma, stakeholder engagement is a continuous process both on the strategic and local levels. Understanding the views

and expectations of stakeholders is key to the success of the business and the implementation of the Sustainability Strategy.

Sanoma’s key stakeholders as well as the purpose and methods of the engagement are described in Table 7 Summary of

interests and views of stakeholders. Sanoma’s stakeholder engagement survey results, including engagement related to

respect of employees, workers in the value chain and consumers' and end-users' human rights, have been used as

background information in the Sustainability Strategy target setting. The views of its own workforce are reflected in the Valued

People theme, the views of workers in the value chain in the Responsible business practices and the views of customers and

end-users in the Inclusive learning, Sustainable media, Trustworthy data, Vital environment and Responsible business

practices themes. Sanoma’s Sustainability Strategy has been created to manage the impacts, risks and opportunities related

to environmental, social and governance topics, which arise from the interests and views of the stakeholders. Detailed

information on Sanoma’s Sustainability Strategy is available in ESRS 2 SBM-1.

During 2024, Sanoma updated the following policies and standards related to material impacts, risks and opportunities:

Sustainability and Human Rights Policy, People Policy, Environmental Standard and Supplier Code of Conduct. The interests

and views of the stakeholders have an impact also on Sanoma’s due diligence process, which is used to assess sustainability

and human rights impacts especially on key stakeholders. In Sanoma’s double materiality assessment process, stakeholders’

interests and views were reviewed when assessing impacts, risks and opportunities related to environmental, social and

governance topics. Relevant interests and views have been relayed to Sanoma’s administrative, management and supervisory

bodies as part of the approval process of the double materiality assessment. The double materiality assessment has been

reviewed and approved by the EMT, Audit Committee and the Board, following Sanoma’s sustainability management model.

Further details of Sanoma’s due diligence process related to each impact, risk and opportunity can be found under topic-

specific disclosures.


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Table 7. Summary of interests and views of stakeholders


Stakeholder category	Purpose and method of stakeholder engagement	Material sustainability topics for stakeholder group
Learning customers and end-users (schools, teachers and students)	Purpose ▪ Co-creation and development of learning materials with teachers and students and providing inclusive learning materials Method ▪ Engaging with teachers through face-to-face and online meetings, newsletters and marketing ▪ Arranging and participating in customer webinars and events ▪ Gathering insight and managing customer satisfaction through surveys	▪ High-quality learning content ▪ Diverse and inclusive learning content and personalisation ▪ Reliable and accessible digital learning platforms ▪ Ethical use of Artificial Intelligence (AI) ▪ Data privacy and security of customer data ▪ Environmental impact of printed books and digital services
Media Finland end-users, consumers and customers	Purpose ▪ Supporting freedom of expression and responsible marketing practices Method Consumers: ▪ Engaging with customers through newsletters and marketing ▪ Gathering insight and managing customer satisfaction through surveys ▪ Receiving proactive feedback from media consumers through different channels ▪ Monitoring of compliance with the Journalistic Guidelines and number of Council for Mass Media cases B2B customers: ▪ Engaging with customers through face-to-face and online meetings, newsletters, marketing and sustainability-related training sessions ▪ Arranging and participating in customer webinars and events ▪ Gathering insight and managing customer satisfaction through surveys ▪ Monitoring of compliance with the Advertising and Marketing Communications Code and number of Ethical Council of Advertising cases	▪ Freedom of expression ▪ Independent journalism ▪ Pluralism and diverse and high-quality media content ▪ Media literacy and literacy in society ▪ Responsible marketing and advertising practices ▪ Respecting children’s rights in advertising ▪ Responsible entertainment ▪ Ethical use of Artificial Intelligence (AI) ▪ Data privacy and security of customer data ▪ Environmental impact of printed newspapers and magazines, TV productions and digital services ▪ Accuracy of green and sustainability claims in advertising


Stakeholder category	Purpose and method of stakeholder engagement	Material sustainability topics for stakeholder group
Own workforce, employees and non-employees	Purpose ▪ Creating a working environment and culture that inspires employees, values their diversity, embraces their views and respects their individual rights Method ▪ Performance management and people development ▪ Employee engagement through several measures, e.g. employee feedback through Pulse and annual Employee Engagement surveys, team and individual discussions, town hall meetings ▪ Locally organised health and well-being services ▪ Internal events and personnel info sessions in different compositions ▪ Active communication, dialogue and cooperation with internal stakeholders, including employees, line managers, employee representatives	▪ Mental and physical health and safety, well-being, work-life balance, working time ▪ Diversity, inclusion and equal opportunities as well as equal pay ▪ Training and skills development ▪ Business ethics, speak up culture and human rights, e.g., Code of Conduct
Investors	Purpose ▪ Information sharing on ESG, sustainable finance and impact investment opportunities Method ▪ Regular engagement through regulatory financial communications (financial reporting, stock exchange releases) ▪ Conference calls, roadshows, individual and group meetings, investor events ▪ Sustainable Finance-related engagement e.g., Social Bond and Social Bond Framework ▪ Annual General Meeting and Capital Markets Day ▪ Analyst and investor perception studies	▪ Development of ESG ratings and reporting ▪ Sustainable finance opportunities ▪ Positive impact of the learning and media businesses on society ▪ Climate strategy
Supply chain partners and workers in the value chain	Purpose ▪ Collaboration with suppliers to ensure sustainability and quality Method ▪ Evaluating suppliers against the sustainability and human rights criteria of the Supplier Code of Conduct ▪ Evaluating counterparty security and reputation risks through the Know Your Counterparty (KYC) -process alongside sustainability assessments in paper and print procurement category ▪ Engagement with paper and print suppliers in biennial Supplier Day ▪ Collecting climate-related and materials data annually in specific procurement categories ▪ Conducting internal audits on supplier sustainability ▪ Helping partners to perform corrective actions in cases of non-compliance	▪ Business ethics and human rights following the Supplier Code of Conduct requirements ▪ Climate and energy strategy implementation and GHG emissions reductions ▪ Regulation-related compliance cooperation e.g., regulation on deforestation-free product (EUDR)


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Stakeholder category	Purpose and method of stakeholder engagement	Material sustainability topics for stakeholder group
Governmental organisations, policymakers and legislators	Purpose ▪ Regulatory and governmental monitoring Method ▪ Sharing views on policies, laws and regulations with officials and legislators through public consultations, meetings, as well as part of a larger stakeholder dialogue with policymakers ▪ Replying to public consultations and providing insights and analysis to government officials and politicians ▪ Participating in the work of industry associations	▪ Policy and legislation topics related to the learning business ▪ Policy and legislation topics related to the media business ▪ Business ethics and human rights
Non- governmental organisations and industry associations	Purpose ▪ Dialogue with NGOs on relevant sustainability topics and cooperation to develop literacy and media literacy ▪ Development of industry practices ▪ Dialogue with stakeholders, such as NGOs, related to the role of media and learning in society as well as the role of literacy and media literacy Method ▪ Cooperation through initiatives and projects to develop media and learning industry practices	▪ Topics related to the learning business (see row Learning customers) ▪ Topics related to the media business (see row Media Finland consumers and customers)
Local communities, universities and research organisations	Purpose ▪ Monitoring of the curriculum changes ▪ Science-based development of sustainability topics Method ▪ Regulatory and governmental monitoring of the curriculum changes ▪ Engaging and meeting with authorities and local city representatives, especially related to the learning business ▪ Cooperation with universities and research organisations to develop sustainability	▪ Topics related to the learning business (see row Learning customers) ▪ Topics related to the media business (see row Media Finland consumers and customers)

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

Sanoma’s material impacts, risks and opportunities originate from its learning and media businesses, its strategy and business

model. Its own workforce plays a key role in ensuring Sanoma’s ability to deliver its products to customers. Environmental

impacts occur due to the production of the physical and digital products. The production of physical and digital products

potentially also has an impact on the workers in the value chain. Impacts on the consumers and end-users mainly occur during

the use-phase of the products, either via privacy and security or through ensuring the quality, reliability and ethics of the

products and solutions.

Sanoma’s assets are mostly intangible and in the double materiality assessment, no significant financial effects related to

sustainability impacts, risks or opportunities were identified. Sanoma has not identified any material sustainability risks which

would pose a significant risk for its financial position, performance, cash flows, or a risk of a material adjustment to the carrying

amounts of assets and liabilities reported in the related financial statements within the next annual reporting period.

During its double materiality assessment, Sanoma has qualitatively assessed that its current strategy and business model are

in general resilient in regards to its capacity to address the material topics identified. Sanoma has analysed its ability to

manage and mitigate identified climate and biodiversity risks in its climate and biodiversity risk assessment. Sanoma’s

emission reduction plans are aligned with the 1.5-degree scenario and during the SBTi target setting, Sanoma used modelling

to ensure its ability to meet the targets. The analysis of resilience in regards to other environmental, social and governance

topics is based on assessing the coverage of Sanoma’s Sustainability Strategy compared to the identified impacts, risks and

opportunities. Sanoma has management measures in place to manage materials impacts, risks and opportunities and all

material topics are covered with Sanoma’s Sustainability Strategy. Resilience was assessed until 2030, as that is the current

time-horizon of Sanoma’s strategy. As the management of impacts, risks and opportunities is embedded into the current

strategy and business model, Sanoma does not identify significant needs, originating from the identified sustainability-related

impacts, risks or opportunities, to adapt its current strategy or business model.


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Table 8. Environmental impacts, risks and opportunities

To produce its learning and media products and services, Sanoma and its suppliers use resources, such as materials which

cause climate and biodiversity impacts, generate GHG emissions, consume energy and generate waste. The use of

resources, especially paper, also generates dependencies and causes transition risks such as the availability of certified

paper, availability of renewable energy and regulatory and customer demand risks. In addition, risks include physical risks

related to climate change hazards, such as flooding.

The following table describes Sanoma’s material impacts, risks and opportunities related to environmental topics as they result

from the double materiality assessment, including the location and expected time horizon of them. All environmental IROs are

covered with ESRS Disclosure Requirements. Further information of material impacts, risks and opportunities, plans to

respond to them, connection to Sanoma’s strategy and business model as well as policies, actions and targets are disclosed

under the topical ESRS E1, E4 and E5.


ESRS Topic	ESRS Sub-topic	Impact, risk or opportunity	Description of material impacts, risks and/or opportunities (IROs)	Location in value chain			Expected time horizon
ESRS Topic	ESRS Sub-topic	Impact, risk or opportunity		Upstream	Own operations	Downstream	Short-term	Medium-term	Long-term

E1 Climate change	Climate change adaptation	Risk	▪ Physical risk of flooding related to facilities, warehouses and printing houses
		Risk	▪ Transition risk of enhanced reporting and other regulations related to sustainability and climate change
		Risk	▪ Transition risk of changing customer behaviour related to climate change
		Opportunity	▪ Opportunities related to sustainable finance
		Opportunity	▪ Opportunities related to meeting shifting consumer preferences
		Opportunity	▪ Reduced energy costs through energy efficiency
	Climate change mitigation	Actual negative impact	▪ Impact of GHG emissions, to a large extent through the value chain (95% of emissions)
	Energy	Actual negative impact	▪ Impact of energy use in facilities, warehouses and printing houses as well as through the supply chain in the production of products, which generates GHG emissions


E4 Biodiversity and ecosystems	Direct impact drivers of biodiversity loss	Actual negative impact	▪ Impact of paper use on biodiversity and use of certification schemes to manage impacts
		Risk	▪ Risks through the availability of certified paper
		Risk	▪ Compliance risk through regulatory changes, such as the regulation on deforestration- free products (EUDR)


E5 Circular economy	Resources inflows, including resource use	Actual negative impact	▪ Impacts of resource inflows, such as materials used in the production of newspapers, magazines and books
E5 Circular economy	Waste	Actual negative impact	▪ Impact of waste generated in facilities, warehouses and printing houses


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Table 9. Social impacts, risks and opportunities

Employees are at the centre of Sanoma’s strategy and operations and Sanoma’s strategic growth ambition requires

excellence and alignment from the employees. Sanoma also impacts consumers and end-users such as teachers and

students by delivering high-quality, inclusive and accessible learning products and services. Through its media business,

Sanoma promotes freedom of expression by delivering reliable information through multiple media platforms and following

journalistic ethics. Sanoma’s media business generates potential negative impacts through advertising, which are managed

though robust practices. Data, especially personal data, is an essential part of Sanoma’s business model and strategy putting

privacy and security impacts at the core of its daily work. To manage privacy impact and risks, Sanoma is committed to

protecting privacy, advancing data security as well as ensuring the ethical use of artificial intelligence (AI).

The following table describes Sanoma’s material impacts, risks and opportunities related to social topic as they result from the

double materiality assessment, including the location and expected time horizon of them. All social IROs are covered by ESRS

Disclosure Requirements, except for the addition of the entity-specific metric Employee Engagement Survey in S1, and all S4

disclosures that include entity-specific metrics. Further information of material impacts, risks and opportunities, plans to

respond to them, connection to Sanoma’s strategy and business model as well as policies, actions and targets are disclosed

under the topical ESRS S1, S2 and S4.


ESRS Topic	ESRS Sub-topic	Impact, risk or opportunity	Description of material impacts, risks and/or opportunities (IROs)	Location in value chain			Expected time horizon
ESRS Topic	ESRS Sub-topic	Impact, risk or opportunity		Upstream	Own operations	Downstream	Short-term	Medium-term	Long-term

S1 Own workforce	Working conditions	Actual negative impact	▪ Impacts on working time of own workforce
		Potential negative impact	▪ Potential impacts on work-life balance of own workforce
		Potential negative impact	▪ Potential impacts on the health and safety of own workforce
		Potential positive impact	▪ Potential impacts on employment security (protection of workers against fluctuations) of own workforce
		Actual positive impact	▪ Potential impacts on adequate wages of own workforce
		Potential negative impact	▪ Potential impacts on social dialogue opportunities of own workforce
		Potential negative impact	▪ Potential impacts on freedom of association of own workforce
		Potential negative impact	▪ Potential impacts on collective bargaining of own workforce
	Equal treatment and opportunities for all	Actual negative impact and potential positive impact	▪ Impacts on gender equality and equal pay of own workforce
		Potential negative impact and potential positive impact	▪ Impacts on diversity of own workforce
		Actual positive impact	▪ Impacts on training and skills development opportunities of own workforce
		Potential negative impact	▪ Potential impacts on anti-harassment of own workforce
	Other work-related rights	Potential negative impact	▪ Potential impacts on privacy of own workforce


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ESRS Topic	ESRS Sub-topic	Impact, risk or opportunity	Description of material impacts, risks and/or opportunities (IROs)	Location in value chain			Expected time horizon
ESRS Topic	ESRS Sub-topic	Impact, risk or opportunity		Upstream	Own operations	Downstream	Short-term	Medium-term	Long-term

S2 Workers in the value chain	Working conditions	Actual negative impact	▪ Impacts on excess working time of printing suppliers’ workforce
		Potential negative impact	▪ Potential impacts on work-life balance of suppliers’ workforce
		Potential negative impact	▪ Potential impacts on health and safety of suppliers’ workforce
		Potential negative impact	▪ Potential impacts on employment security (protection of workers against fluctuations) of suppliers’ workforce
		Potential negative impact	▪ Potential impacts on adequate wages of suppliers’ workforce
		Potential negative impact	▪ Potential impacts on social dialogue opportunities of suppliers’ workforce
		Potential negative impact	▪ Potential impacts on freedom of association opportunities of suppliers’ workforce
		Potential negative impact	▪ Potential impacts on collective bargaining opportunities of suppliers’ workforce
	Equal treatment and opportunities for all	Potential negative impact	▪ Potential impacts on gender equality and equal pay of suppliers’ workforce
	Equal treatment and opportunities for all	Potential negative impact	▪ Potential impacts on training and skills development of suppliers’ workforce


S4 Consumers and end users	Information-related impacts: Privacy	Actual negative impact	▪ Impacts of privacy and info security on media and learning customers
	Information-related impacts: Privacy	Risk	▪ Risk of negative privacy impacts and violation of GDPR
	Information-related impacts: Freedom of expression and media ethics	Actual positive impact	▪ Impact of journalistic ethics and operations as a media company on freedom of expression
	Information-related impacts: Access to quality information and education	Actual positive impact	▪ Impacts of access to high-quality and inclusive learning products and services
	Social inclusion: Accessibility, access to products and services	Potential negative impact	▪ Impacts of digital accessibility on customers, especially students and teachers in the learning business
	Social inclusion: Responsible advertising	Potential negative impact	▪ Impact of responsible advertising practices and compliance with green claims regulation


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Table 10. Governance impacts, risks and opportunities

Throughout its business, Sanoma is committed to responsible business conduct, including managing risks related to corporate

culture and clarity of ethical expectations, IPR rights, generative AI, and regulatory landscape. As a part of responsible

business conduct, Sanoma ensures protection of whistleblowers, monitors its potential impacts to political engagement and

lobbying activities to ensure reliability and monitors risks related to anti-bribery, corruption, gifts and hospitality as well as

potential impacts of payment practices on suppliers. As a part of continuous cooperation with key suppliers, Sanoma manages

risks of supplier non-compliance with sustainability and human rights requirements as well as aims to identify impacts on

workers in the value chain.

The following table describes Sanoma’s material impacts, risks and opportunities related to governance topic, as they result

from the double materiality assessment, including the location and expected time horizon of them. All governance IROs are

covered with ESRS Disclosure Requirements, except G1-1, where additional entity-specific metrics related to the Code of

Conduct trainings’ completion rate is used. Further information on material impacts, risks and opportunities, plans to respond

to them, connection to Sanoma’s strategy and business model as well as policies, actions and targets are disclosed under the

topical ESRS G1.


ESRS Topic	ESRS Sub-topic	Impact, risk or opportunity	Description of material impacts, risks and/or opportunities (IROs)	Location in value chain			Expected time horizon
ESRS Topic	ESRS Sub-topic	Impact, risk or opportunity		Upstream	Own operations	Downstream	Short-term	Medium-term	Long-term

G1 Business conduct	Corporate culture	Risk	▪ Risk related to clarity of ethical expectations
		Risk	▪ Risk related to management of IPR rights
		Risk	▪ Risk related to Gen AI -assisted works
		Risk	▪ Risk related to the regulatory landscape
	Protection of whistle- blowers	Potential negative impact	▪ Impacts on whistle-blowers and existence of a channel and speak-up culture
	Political engagement and lobbying activities	Potential negative impact	▪ Potential negative impacts of political engagement and lobbying of media and learning businesses
	Management of relationships with suppliers including payment practices	Potential negative impact	▪ Impact on suppliers through payment practices
		Risk	▪ Risk of supplier non-compliance with SCoC and lack of sufficient DD or audits regarding supplier compliance
	Corruption and bribery	Risk	▪ Risk related to anti-bribery, corruption, gifts and hospitality


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Impact, risk and opportunity management

IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities

The aim of the double materiality assessment (DMA), is to identify actual and potential sustainability-related impacts, risks and

opportunities relevant for the company. Sanoma’s material impacts, risks and opportunities have been identified in an

assessment conducted during 2023–2024, and covering Sanoma’s own operations as well as upstream and downstream

value chain. This process follows the European Sustainability Reporting Standards' requirements as well as the principles of

Sanoma’s Enterprise Risk Management process. The responsibilities of the administrative and supervisory bodies related to

the DMA are determined in Sanoma’s sustainability management model. The results of the assessment were reviewed by the

Executive Management Team and approved by the Board of Directors in 2024. The DMA process was hosted by Sanoma’s

Sustainability team, in close cooperation with the Compliance team. All members of Sanoma’s Sustainability and Ethics

Working Group participated in the DMA, in addition to other key internal stakeholders, such as the Managing Directors of all

Learning operating companies. The DMA considers Sanoma’s impacts through its own operations and as a result of its

business relationships. It focuses on Sanoma’s business activities related to its learning and media businesses, with the

geographies including all Sanoma’s operating countries. Business relationships have been especially assessed for tier 1

suppliers, extending the assessment to tier 2 suppliers within categories of higher risk, such as the paper and print suppliers.

Sanoma’s DMA included two phases. During the first phase in 2023, Sanoma listed all actual and potential impacts, risks and

opportunities by using the ESRS 1 longlist of sustainability topics and complementing the list with company-specific topics,

consolidating existing insights within the Company. Insights included the results of the Enterprise Risk Management (ERM)

process, compliance risk survey, climate and biodiversity risks assessment, Human Rights Impact Assessment, Employee

Engagement Survey, DE&I survey, a previous impact-focused sustainability materiality assessment as well as a review of

misconduct cases reported via Sanoma’s whistleblowing channel. The views of key internal and external stakeholders were

included into the consolidated existing insights and therefore considered in the double materiality assessment: own workforce,

value chain workers, customers and end-users as well as investors. Sanoma also used insights and reports from credible

proxies and interviewed internal experts to ensure a comprehensive view.

During the second phase in 2024, all actual and potential impacts, risks and opportunities were prioritised by performing

impact and financial assessments in workshops together with internal topic owners. Internal topic owners include

Procurement, HR, Compliance, Legal, Privacy, Security and Strategy representatives as well as managing directors for key

business areas. The topic owners used available sources and their overall expertise and judgement to assess each topic.

Several calibration meetings were held to align interpretations of the criteria and scales used. Sanoma’s double materiality

assessment approach applies the double materiality concept described in ESRS 1. Each impact was assessed for:

■ Severity of negative impacts (scale, scope and irremediability) and significance of positive impacts (scale and scope)

■ Likelihood of potential impacts on a scale of very unlikely (10%), unlikely (30%), uncertain (50%), likely (70%) or very likely

(90%)

■ Location of the impact in the value chain (upstream, own operations, downstream)

■ Time horizon of the impact: short term (0–1 years), medium term (1–3 years) or long term (3 years and beyond)

■ With regard to potential negative human rights impacts, it was noted that the severity of the impact takes precedence over

likelihood.

Financial materiality of each sustainability risk and opportunity was assessed as follows:

■ Financial significance of risk or opportunity on a scale of not significant (EUR 0–1 million), low (EUR 1–5 million), average

(EUR 5–20 million), high (EUR 20–40 million) or very high (EUR 40+ million)

■ Likelihood of risk or opportunity on a scale of very unlikely (10%), unlikely (30%), uncertain (50%), likely (70%) or very

likely (90%)

■ Location of the risk or opportunity in the value chain (upstream, own operations, downstream)

■ Time horizon of impact on short term (0–1 years), medium term (1–3 years) or long term (3 years and beyond)

■ Financial risks and opportunities assessment followed the same scale as used in Sanoma’s ERM process.

After the topic owners had performed their assessments, the results of the assessments were consolidated to a list of impacts,

risks and opportunities material to Sanoma. To ensure comparability between topics, the Sustainability and Compliance teams

performed a final review of the list of material impacts, risks and opportunities for reporting purposes. This review also

included discussions with the Executive Management Team.

The double materiality process determines the impacts, risks and opportunities for the sustainability disclosure and all topics

that are impact or financially material, or both, are disclosed in the Sustainability Statement. A sustainability matter was

deemed material if at least one impact, risk or opportunity indicated either impact materiality, financial materiality, or both. Non-

material sustainability matters were those where no impacts, risks or opportunities were identified or all IROs were found

unlikely, financially not significant or not causing impacts. The financial threshold for sustainability-related risks disclosed is the

same as in Sanoma’s Enterprise Risk Management process. All potential risks identified in Sanoma’s double materiality

assessment fall into the category of low risk.

During the double materiality assessment, Sanoma assessed risks related to sustainability separately from the ERM process

and re-assessed sustainability risks identified within the ERM process. In addition, the preliminary results of the DMA were

used to enrich the ERM results during autumn 2024, and to evaluate Sanoma’s overall risk profile.

The double materiality process guides the priorities of the sustainability issues. The process to identify, assess and manage

impacts and opportunities is integrated into Sanoma’s overall management process through Sanoma’s sustainability

management model, which determines that annually Sanoma identifies and assesses its impacts, risks and opportunities and

determines actions to manage the material IROs. In many areas identified as material, Sanoma has defined specific KPIs to

measure performance and discloses these metrics and targets in its Sustainability Statement. Sanoma’s management of

sustainability impacts, risks and opportunities is based on targeting measures at areas where the impact or risks are the

highest. Where Sanoma cannot address all impacts or risks at once, the due diligence process allows for actions to be

prioritised based on the severity or financial significance and likelihood of impacts.


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There is certain inherent uncertainty related to the double materiality assessment as practices of the assessment are evolving.

Sanoma will evaluate the need to update its double materiality assessment annually. Going forward, Sanoma plans to analyse

the time horizon of impacts, risks and opportunities using longer time horizons. Also, upstream and downstream impacts

require continuous assessment, e.g., due to the EU deforestation regulation, which will enhance the traceability of paper-

related products and Sanoma’s ability to review its biodiversity impacts throughout its upstream value chain. Sanoma has

assessed sustainability-related dependencies during both its ERM risk assessment as well as the double materiality

assessment process. Identified dependencies include e.g., dependencies related to the availability of key staff, availability of

certified paper to produce its printed products and dependency of customer data to develop its digital products. No external

consultations were conducted in regards to climate, pollution, water, biodiversity or resource-use impacts.

E1 IRO-1 Climate change

Sanoma assesses its impacts on climate change, in particular on GHG emissions, by annually calculating its actual climate

impacts according the GHG Protocol, as described under E1-6. As a part of its annual GHG emission calculations and

transition planning, Sanoma also screens and identifies potential future GHG emission sources.

Sanoma evaluates climate- and biodiversity-related physical and transition risks annually and in 2024, they were assessed as

part of the double materiality assessment. Physical and transition risks were analysed over short (0–1 years), medium (1–3

years), and long-term (3– years) horizons. These timeframes are used for strategic and financial planning as well as in the

ERM process. The assessment covers both own operations as well as the upstream and downstream value chain.

Three climate-related potential risks and opportunities were identified through the assessment and scenario analysis. Sanoma

identifies certain climate-related physical risks which may impact the business on a short- to long-term timeframe. Acute

physical hazards like flooding, driven by increased severity of extreme weather events, may pose a risk to Sanoma’s printing

houses, facilities and warehouses. The risk is particularly related to damages to facilities due to floods and heavy rain in high

flooding risk locations. To manage and mitigate the risk of damage, Sanoma develops comprehensive response plans and

acquires insurances. Some minor increases in the pricing of the insurances can be forecasted.

In addition to physical risks, Sanoma identifies certain transition risks which may impact the business on short- to long-term

timeframe. Sanoma identifies a risk of increasing complexity and cost associated with compliance with enhanced emissions

reporting obligations and regulations. Regulations, such as the Corporate Sustainability Reporting Directive (CSRD) and the

EU Deforestation Regulation (EUDR), require extensive data collection, data management, and reporting infrastructure. This

can lead to increased operational costs, both directly within Sanoma’s operations and indirectly through the supply chain, as

suppliers also face stricter emissions regulations. Additionally, non-compliance with these regulations could result in financial

penalties and reputational damage, further impacting business operations and financial performance. Sanoma identifies an

opportunity to enhance brand value and increase demand by actively promoting and developing robust and transparent

climate and biodiversity actions. Contrarily, changing customer behaviour can also be a risk if customer expectations are not

met. Sanoma addresses transition risks and opportunities by monitoring and complying with regulations such as the CSRD,

CSDDD, and EUDR, managing reputational risks related to stakeholder demands for climate action and working with suppliers

to reduce emissions and transition to lower-carbon products.

Sanoma's scenario analysis for transition and physical risks has included assessing the impacts of current and future

regulations on operations and supply chains, evaluating changes in customer behaviour and market demand for sustainable

products as well as identifying opportunities for adopting new technologies to reduce emissions. In its assessment, Sanoma

has used climate scenarios, including scenarios in line with limiting global warming to 1.5°C with no or limited overshoot and

high-climate scenarios, such as RCP 1.9, RCP 4.5, RCP 8.5 and IEA SDS to understand potential alternative futures and to

develop strategies to mitigate identified risks based on scenario outcomes. These scenarios are based on best available

scientific evidence, such as the IPCC assessments. As Sanoma’s assets are mostly intangible, no assets or business activities

that are sensitive to significant physical hazards or transition risks or incompatible with the transition to a climate-neutral

economy have been identified. Sanoma continuously monitors and develops its ability to assess climate-related risks.

E2 IRO-1 Pollution

Sanoma’s double materiality assessment process identified pollution as a non-material topic due to the Company's minimal

pollution impacts, with no substances of concern found in comparison to the ECHA Candidate List. Consultations confirmed

that Media Finland's printing houses report small VOC (volatile organic compounds) emissions and that the Group's plastic

use is minor and continuously minimised, with no significant microplastics identified.

E3 IRO-1 Water and marine resources

Sanoma’s double materiality assessment deemed water and marine resources as non-material topics due to minimal impacts,

with no significant water or marine resource impacts identified.

E4 IRO-1 Biodiversity and ecosystems

Sanoma evaluates climate- and biodiversity-related physical and transition risks annually, and in 2024 as a part of the double

materiality assessment, as described above under E1 IRO Climate change. Sanoma identified two transitional risks related to

biodiversity and ecosystems in its assessment: the availability of certified paper and regulatory uncertainty from the EU

Deforestation Regulation. These risks were assessed as low, with no physical or systemic risks identified. Sanoma

continuously monitors and develops its ability to assess these risks.

In relation to biodiversity, no significant impacts were identified in Sanoma’s double materiality assessment at own site

locations, but upstream value chain impacts were recognised, particularly from paper production and sourcing, which can lead

to biodiversity loss, ecosystem disruption, and pollution. Sanoma has assessed its dependencies on biodiversity and

ecosystems, particularly related to forest commodities, focusing on the availability of certified paper and the carbon profiles of

paper suppliers. Sanoma has not conducted consultations with affected communities on sustainability assessments of shared

biological resources and ecosystems. Sanoma does not have sites near biodiversity-sensitive areas and therefore does not

need to implement biodiversity mitigation measures in own sites were not identified. Sanoma has not used biodiversity and

ecosystems scenario analysis to inform the identification and assessment of material risks and opportunities over short-,

medium- and long-term time horizons. Sanoma continuously monitors and develops its ability to assess biodiversity-related

risks.


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E5 IRO-1 Resource use and circular economy

Sanoma screened its assets, own operations and upstream and downstream value chain activities during the double

materiality assessment and ERM process to identify resource use-related impacts, risks, and opportunities. The screening

identified actual upstream value chain and own operations impacts related to the use of materials like paper, printing plates,

inks, and solvents, but there were no significant risks or opportunities outside those reported under biodiversity related to

paper use and availability, and no significant impacts on Sanoma’s mostly intangible assets. In addition, the impact of waste

generated in facilities, warehouses and printing houses was identified as own operations' impact. Sanoma did not conduct

specific consultations with affected communities.

G1 IRO-1 Business conduct

The double materiality process in relation to business conduct matters included sector-specific analysis of business activities,

operations, functions, transactions as well as geographical areas where the business operates in relation to risk locations and

where its impacts are most significant. As a result, procurement, as well as the sales teams in countries, where the sales

happens through agents, such as Spain and Italy, have been identified as functions that are most at risk in respect of

corruption and bribery.


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IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s Sustainability Statement

Sanoma has determined the material information to be disclosed by conducting a comprehensive double materiality

assessment process, as outlined in ESRS 1 section 3.2 and described in ESRS 2 IRO-1. The assessment considers both the

financial materiality, which focuses on sustainability impacts, risks and opportunities related to the Company's financial

performance, and the impact materiality, which addresses Sanoma’s impacts on the environment and society. To implement

the criteria in ESRS 1 section 3.2, Sanoma has gathered information about the perspectives of its stakeholders on what

constitutes material information. The Company has used both qualitative and quantitative thresholds to prioritise the most

significant impacts, risks, and opportunities. These thresholds are based on the magnitude of the impact, the likelihood of

occurrence, and the relevance to Sanoma’s business strategy and stakeholder interests. The results of this assessment have

been integrated into Sanoma’s sustainability reporting, ensuring that the disclosed information is relevant, reliable, and aligned

with stakeholder expectations. This approach not only enhances transparency but also supports Sanoma’s commitment to

sustainable business practices and long-term value creation.

Table 11. Content index: Disclosure Requirements complied with in preparing the Sustainability Statement


Standard	Disclosure requirement (DR)	Sustainability Statement section
ESRS 2 General disclosures	ESRS 2 BP-1	ESRS 2 General disclosures, Basis of preparation
	ESRS 2 BP-2	ESRS 2 General disclosures, Basis of preparation
	ESRS 2 GOV-1 ESRS 2 G1 GOV-1 ESRS 2 GOV 2 ESRS 2 GOV 3 ESRS 2 E1 GOV-3 ESRS 2 GOV 4 ESRS 2 GOV 5	ESRS 2 General disclosures, Sustainability governance
	ESRS 2 SBM-1 ESRS 3 SBM-2 ESRS 2 S1 SBM-2 ESRS 2 S2 SBM-2 ESRS 2 S4 SBM-2 ESRS 2 SBM-3	ESRS 2 General disclosures, Sustainability strategy
	ESRS 2 IRO-1 ESRS 2 E1 IRO-1 ESRS 2 E4 IRO-1 ESRS 2 E5 IRO-1 ESRS 2 E2 IRO-1 ESRS 2 E3 IRO-1 ESRS 2 G1 IRO-1	ESRS 2 General disclosures, Impact, risk and opportunity management
	ESRS 2 IRO-2	ESRS 2 General disclosures, Impact, risk and opportunity management
E1 Climate change	EU Taxonomy	Environmental information, EU Taxonomy disclosure
	ESRS E1-SBM 3	Environmental disclosure, ESRS E1 Climate change, Strategy
	ESRS E1-1	Environmental disclosure, ESRS E1 Climate change, Strategy
	ESRS E1-2	Environmental disclosure, ESRS E1 Climate change, Impact, risk and opportunity management
	ESRS E1-3	Environmental disclosure, ESRS E1 Climate change, Impact, risk and opportunity management
	ESRS E1-4	Environmental disclosure, ESRS E1 Climate change, Metrics and targets
	ESRS E1-5	Environmental disclosure, ESRS E1 Climate change, Metrics and targets
	ESRS E1-6	Environmental disclosure, ESRS E1 Climate change, Metrics and targets
	ESRS E1-7	Environmental disclosure, ESRS E1 Climate change, Metrics and targets


Standard	Disclosure requirement (DR)	Sustainability Statement section
E4 Biodiversity and ecosystems	ESRS E4-1	Environmental disclosure, ESRS E4 Biodiversity and ecosystems, Strategy
	ESRS E4-SBM 3	Environmental disclosure, ESRS E4 Biodiversity and ecosystems, Strategy
	ESRS E4-2	Environmental disclosure, ESRS E4 Biodiversity and ecosystems, Impact, risk and opportunity management
	ESRS E4-3	Environmental disclosure, ESRS E4 Biodiversity and ecosystems, Impact, risk and opportunity management
	ESRS E4-4	Environmental disclosure, ESRS E4 Biodiversity and ecosystems, Metrics and targets
E5 Resource use and circular economy	ESRS E5-1	Environmental disclosure, ESRS E5 Resource use and circular economy, Impact, risk and opportunity management
	ESRS E5-2	Environmental disclosure, ESRS E5 Resource use and circular economy, Impact, risk and opportunity management
	ESRS E5-3	Environmental disclosure, ESRS E5 Resource use and circular economy, Metrics and targets
	ESRS E5-4	Environmental disclosure, ESRS E5 Resource use and circular economy, Metrics and targets
	ESRS E5-5	Environmental disclosure, ESRS E5 Resource use and circular economy, Metrics and targets


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Standard	Disclosure requirement (DR)	Sustainability Statement section
S1 Own workforce	ESRS S1-SBM 3	Social information, ESRS S1 Own workforce, Strategy
	ESRS S1-1	Social information, ESRS S1 Own workforce, Impact, risk and opportunity management
	ESRS S1-2	Social information, ESRS S1 Own workforce, Impact, risk and opportunity management
	ESRS S1-3	Social information, ESRS S1 Own workforce, Impact, risk and opportunity management
	ESRS S1-4	Social information, ESRS S1 Own workforce, Impact, risk and opportunity management
	ESRS S1-5	Social information, ESRS S1 Own workforce, Metrics and targets
	ESRS S1-6	Social information, ESRS S1 Own workforce, Metrics and targets
	ESRS S1-8	Social information, ESRS S1 Own workforce, Metrics and targets
	ESRS S1-9	Social information, ESRS S1 Own workforce, Metrics and targets
	ESRS S1-10	Social information, ESRS S1 Own workforce, Metrics and targets
	ESRS S1-11	Social information, ESRS S1 Own workforce, Metrics and targets
	ESRS S1-14	Social information, ESRS S1 Own workforce, Metrics and targets
	ESRS S1-15	Social information, ESRS S1 Own workforce, Metrics and targets
	ESRS S1-16	Social information, ESRS S1 Own workforce, Metrics and targets
	ESRS S1-17	Social information, ESRS S1 Own workforce, Metrics and targets
S2 Workers in the value chain	ESRS S2-SBM 3	Social information, ESRS S2 Workers in the value chain, Strategy
	ESRS S2-1	Social information, ESRS S2 Workers in the value chain, Impact, risk and opportunity management
	ESRS S2-2	Social information, ESRS S2 Workers in the value chain, Impact, risk and opportunity management
	ESRS S2-3	Social information, ESRS S2 Workers in the value chain, Impact, risk and opportunity management
	ESRS S2-4	Social information, ESRS S2 Workers in the value chain, Impact, risk and opportunity management
	ESRS S2-5	Social information, ESRS S2 Workers in the value chain, Metrics and targets


Standard	Disclosure requirement (DR)	Sustainability Statement section
S4 Customers and end-users	ESRS S4-SBM 3	Social information, ESRS S4 Customers and end-users, Strategy
	ESRS S4-1	Social information, ESRS S4 Customers and end-users, Impact, risk and opportunity management
	ESRS S4-2	Social information, ESRS S4 Customers and end-users, Impact, risk and opportunity management
	ESRS S4-3	Social information, ESRS S4 Customers and end-users, Impact, risk and opportunity management
	ESRS S4-4	Social information, ESRS S4 Customers and end-users, Impact, risk and opportunity management
	ESRS S4-5	Social information, ESRS S4 Customers and end-users, Metrics and targets
G1 Business conduct	ESRS G1-1	Governance information, ESRS G1 Business conduct, Impact, risk and opportunity management
	ESRS G1-2	Governance information, ESRS G1 Business conduct, Impact, risk and opportunity management
	ESRS G1-3	Governance information, ESRS G1 Business conduct, Impact, risk and opportunity management
	ESRS G1-4	Governance information, ESRS G1 Business conduct, Metrics and targets
	ESRS G1-5	Governance information, ESRS G1 Business conduct, Metrics and targets
	ESRS G1-6	Governance information, ESRS G1 Business conduct, Metrics and targets


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Table 12. List of data points in cross-cutting and topical standards that derive from EU legislation


Disclosure Requirements and Data Point complied with in preparing the Sustainability Statement	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Location in the Sustainability Statement / Not material
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d)	Indicator number 13 of Table #1 of Annex 1		Commission Delegated Regulation (EU) 2020/1816 (27), Annex II		ESRS 2 GOV-1
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e)			Delegated Regulation (EU) 2020/1816, Annex II		ESRS 2 GOV-1
ESRS 2 GOV-4 Statement on due diligence paragraph 30	Indicator number 10 Table #3 of Annex 1				ESRS 2 GOV-4
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i	Indicators number 4 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk	Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii	Indicator number 9 Table #2 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii	Indicator number 14 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv			Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14				Regulation (EU) 2021/1119, Article 2(1)	ESRS E1-1
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book-Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article 12.1 (d) to (g), and Article 12.2		ESRS E1-1
ESRS E1-4 GHG emission reduction targets paragraph 34	Indicator number 4 Table #2 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 6		ESRS E1-4
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38	Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1				ESRS E1-5
ESRS E1-5 Energy consumption and mix paragraph 37	Indicator number 5 Table #1 of Annex 1				ESRS E1-5
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43	Indicator number 6 Table #1 of Annex 1				ESRS E1-5
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44	Indicators number 1 and 2 Table #1 of Annex 1	Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1)		ESRS E1-6
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55	Indicators number 3 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 8(1)		ESRS E1-6
ESRS E1-7 GHG removals and carbon credits paragraph 56				Regulation (EU) 2021/1119, Article 2(1)	ESRS E1-7
ESRS E1-9 Exposure of the benchmark portfolio to climate- related physical risks paragraph 66			Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II		Not material


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Disclosure Requirements and Data Point complied with in preparing the Sustainability Statement	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Location in the Sustainability Statement / Not material
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book–Climate change physical risk: Exposures subject to physical risk.			Phase-in used
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34;Template 2:Banking book -Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral			Not material
ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69			Delegated Regulation (EU) 2020/1818, Annex II		Not material
ESRS E2-4 Amount of each pollutant listed in Annex II of the E- PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28	Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1				Not material
ESRS E3-1 Water and marine resources paragraph 9	Indicator number 7 Table #2 of Annex 1				Not material
ESRS E3-1 Dedicated policy paragraph 13	Indicator number 8 Table #2 of Annex 1				Not material
ESRS E3-1 Sustainable oceans and seas paragraph 14	Indicator number 12 Table #2 of Annex 1				Not material
ESRS E3-4 Total water recycled and reused paragraph 28 (c)	Indicator number 6.2 Table #2 of Annex 1				Not material
ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29	Indicator number 6.1 Table #2 of Annex 1				Not material
ESRS 2- SBM 3 - E4 paragraph 16 (a) i	Indicator number 7 Table #1 of Annex 1				E4-SBM-3
ESRS 2- SBM 3 - E4 paragraph 16 (b)	Indicator number 10 Table #2 of Annex 1				E4-SBM-3
ESRS 2- SBM 3 - E4 paragraph 16 (c)	Indicator number 14 Table #2 of Annex 1				E4-SBM-3
ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b)	Indicator number 11 Table #2 of Annex 1				Not material
ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c)	Indicator number 12 Table #2 of Annex 1				Not material
ESRS E4-2 Policies to address deforestation paragraph 24 (d)	Indicator number 15 Table #2 of Annex 1				ESRS E4-2
ESRS E5-5 Non-recycled waste paragraph 37 (d)	Indicator number 13 Table #2 of Annex 1				ESRS E5-5
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39	Indicator number 9 Table #1 of Annex 1				ESRS E5-5


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Disclosure Requirements and Data Point complied with in preparing the Sustainability Statement	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Location in the Sustainability Statement / Not material
ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f)	Indicator number 13 Table #3 of Annex I				Not material
ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g)	Indicator number 12 Table #3 of Annex I				Not material
ESRS S1-1 Human rights policy commitments paragraph 20	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I				ESRS S1-1
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21			Delegated Regulation (EU) 2020/1816, Annex II		ESRS S1-1
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22	Indicator number 11 Table #3 of Annex I				ESRS S1-1
ESRS S1-1 Workplace accident prevention policy or management system paragraph 23	Indicator number 1 Table #3 of Annex I				ESRS S1-1
ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c)	Indicator number 5 Table #3 of Annex I				ESRS S1-3
ESRS S1-14 Number of fatalities and number and rate of work- related accidents paragraph 88 (b) and (c)	Indicator number 2 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		ESRS S1-14
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)	Indicator number 3 Table #3 of Annex I				Phase-in used
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)	Indicator number 12 Table #1 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		ESRS S1-16
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)	Indicator number 8 Table #3 of Annex I				ESRS S1-16
ESRS S1-17 Incidents of discrimination paragraph 103 (a)	Indicator number 7 Table #3 of Annex I				ESRS S1-17
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 104 (a)	Indicator number 10 Table #1 and Indicator number 14 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1)		ESRS S1-17
ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b)	Indicators number 12 and number 13 Table #3 of Annex I				Not material
ESRS S2-1 Human rights policy commitments paragraph 17	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1				ESRS S2-1
ESRS S2-1 Policies related to value chain workers paragraph 18	Indicator number 11 and number 4 Table #3 of Annex 1				ESRS S2-1
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		ESRS S2-1
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19			Delegated Regulation (EU) 2020/1816, Annex II		ESRS S2-1
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36	Indicator number 14 Table #3 of Annex 1				ESRS S2-4
ESRS S3-1 Human rights policy commitments paragraph 16	Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1				Not material
ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17	Indicator number 10 Table #1 Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		Not material
ESRS S3-4 Human rights issues and incidents paragraph 36	Indicator number 14 Table #3 of Annex 1				Not material


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Disclosure Requirements and Data Point complied with in preparing the Sustainability Statement	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Location in the Sustainability Statement / Not material
ESRS S4-1 Policies related to consumers and end-users paragraph 16	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1				ESRS S4-1
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		ESRS S4-1
ESRS S4-4 Human rights issues and incidents paragraph 35	Indicator number 14 Table #3 of Annex 1				ESRS S4-4
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b)	Indicator number 15 Table #3 of Annex 1				ESRS G1-1
ESRS G1-1 Protection of whistle-blowers paragraph 10 (d)	Indicator number 6 Table #3 of Annex 1				ESRS G1-1
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a)	Indicator number 17 Table #3 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		ESRS G1-4
ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b)	Indicator number 16 Table #3 of Annex 1				ESRS G1-4


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Environmental information

EU Taxonomy disclosure

Disclosures pursuant to Article 8 of Regulation 2020/852 (Taxonomy Regulation)

The EU’s Sustainable Finance Classification System (‘Taxonomy’) is a system for defining environmentally sustainable

economic activities. According to the Taxonomy, an economic activity is classified as environmentally sustainable if it

contributes substantially to one or more of the six environmental objectives, fulfils the 'do no significant harm' (DNSH) criteria

to the other environmental objectives (i.e., complies with DNSH technical screening criteria in the delegated acts

supplementing the Taxonomy Regulation) and complies with Minimum Safeguards related to the OECD MNE Guidelines, the

UNGPs, the Declaration of the International Labour Organization on Fundamental Principles and Rights at Work and the

International Bill of Human Rights. The six environmental objectives defined by the EU are:

1. climate change mitigation,

2. climate change adaptation,

3. sustainable use and protection of water and marine resources,

4. transition to a circular economy,

5. pollution prevention and control and

6. protection and restoration of biodiversity and ecosystems.

For 2024, the eligibility of all six environmental objectives, with three KPIs – Turnover, CapEx and OpEx – is reported following

Sanoma’s Taxonomy Accounting Policy. In addition, alignment is reported for climate change mitigation and adaptation.

The Taxonomy currently focuses on the most carbon-intensive industries, green energy and innovations. Sanoma’s

environmental footprint is not significant, and as a learning and media company, only a few of its businesses are defined as

Taxonomy-eligible activities, while none are Taxonomy-aligned. Sanoma’s Taxonomy disclosure is based on an annual

assessment of Taxonomy-eligibility and Taxonomy-alignment. The assessment model was developed in internal workshops

with representatives from the businesses, sustainability and finance operations.

According to Sanoma’s assessment, the following economic activities are identified as eligible under the objective 2) climate

change adaptation: 8.2 Computer programming, consultancy and related activities (digital learning businesses) and 8.3

Programming and broadcasting activities (TV and radio broadcasting business in Finland). Economic activities 13.1 Creative,

arts and entertainment activities (live events business in Finland) and 13.3 Motion picture, video and television programme

production, sound recording and music publishing activities (music publishing business in Finland) were also found to be

potentially eligible for Sanoma, but to avoid double counting, Sanoma reports all eligible Turnover, CapEx and OpEx related to

Nelonen Media and these activities under economic activity 8.3. According to Sanoma’s assessment, the Taxonomy’s

economic activity 11 Education, only refers to the organising of public and private education, and thus does not cover

Sanoma’s Learning business. The Taxonomy’s list of potentially eligible activities does not include any news media-related

economic activities and therefore Sanoma’s news media business is not considered as an eligible economic activity.

Sanoma’s eligible activities only include potential substantial contribution to objective 2) climate change adaptation. None of

Sanoma’s eligible activities were identified to substantially contribute to 2) climate change adaptation and therefore none of

Sanoma’s activities are Taxonomy-aligned. None of Sanoma’s eligible activities include any DNSH criteria. Sanoma has

reviewed the Minimum Safeguards criteria related to the Taxonomy and complies with respect to human rights, bribery and

corruption, taxation and fair competition.

Taxonomy accounting policy

In Sanoma’s reporting, Taxonomy-eligible and Taxonomy-aligned Turnover, CapEx and OpEx are only accounted once,

although some Taxonomy-eligible businesses would be eligible under several economic activities.

Taxonomy-eligible and aligned turnover: Turnover of Taxonomy-eligible economic activities is reported in relation to the

Group’s total net sales (Consolidated Financial Statements, Note 2.2), which means the Turnover of products and services

associated with Taxonomy-eligible economic activities is divided with the Group’s consolidated net sales. The Taxonomy-

eligible Turnover includes net sales of activity 8.3. Net sales of economic activity 8.2. is not included in the Taxonomy-eligible

net sales, because this activity is not an enabling activity. Enabling economic activities are a sub-category of environmentally

sustainable economic activities under the Taxonomy Regulation, which do not substantially contribute to climate change

mitigation through their own performance. Taxonomy-aligned Turnover would be calculated following the same formula as

eligible activities, if the activity-specific substantial contribution criteria would be met.

Taxonomy-eligible and aligned capital expenditure: CapEx of Taxonomy-eligible activities is reported in relation to the

Group’s total CapEx (Consolidated Financial Statements, Note 3.2 and Note 3.3). The Taxonomy-eligible CapEx deviates

from the Group’s total CapEx. Total CapEx includes additions in the Group’s tangible and intangible assets during the year.

The Taxonomy-eligible CapEx includes additions in the tangible and intangible assets of all Taxonomy-eligible activities.

According to the Taxonomy Regulation, the total acquisition value of TV programming rights is considered as Taxonomy-

eligible CapEx under the activity 8.3 forming a major part of Sanoma’s taxonomy-eligible CapEx. In Sanoma’s financial

reporting, the acquisition of TV programming rights is excluded from the cash-based CapEx. Taxonomy-aligned CapEx would

be calculated following the same formula as eligible activities, if the activity-specific substantial contribution criteria would be

met.

Taxonomy-eligible and aligned operating expenses: OpEx of Taxonomy-eligible activities is reported in relation to net

opex. Net OpEx deviates from the Group’s operating expenditure and includes direct non-capitalised costs related to the use

of Sanoma’s taxonomy-eligible economic activities’ assets. The direct non-capitalised costs are related to TV broadcasting,

digital production, purchased digital traffic, research and development (incl. related employee benefit expenses), ICT

development and short-term leasing payments. OpEx of Taxonomy-eligible activity 8.2 includes non-capitalised R&D costs

(incl. employee benefit expenses). OpEx of Taxonomy-eligible activity 8.3 includes distribution expenses and direct employee

expenses of broadcasting activities. Taxonomy-aligned OpEx would be calculated following the same formula as eligible

activities, if the activity specific substantial contribution criteria would be met.


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Table 13. Nuclear and fossil gas related activities


	Nuclear energy related activities
1.	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation Facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
2.	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	NO
3.	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	NO
	Fossil gas related activities
4.	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gas fuels.	NO
5.	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gas fuels.	NO
6.	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gas fuels.	NO


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Table 14. Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering the year 2024

Financial year 2024

2024

Substantial Contribution Criteria

DNSH criteria

('Do No Significant Harm')(h)

Economic Activities (1)

Code (a) (2)

Turnover (3)

Proportion of

Turnover, year 2024

(4)

Climate Change

Mitigation (5)

Climate Change

Adaptation (6)

Water (7)

Pollution (8)

Circular Economy

(9)

Biodiversity (10)

Climate Change

Mitigation (11)

Climate Change

Adaptation (12)

Water (13)

Pollution (14)

Circular Economy

(15)

Biodiversity (16)

Minimum

Safeguards (17)

Proportion of

Taxonomy-aligned

(a.1.) or eligible

(A.2.) Turnover,

year 2023 (18)

Category enabling

activity (19)

Category

transitional activity

(20)

MEUR

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

8.2. Computer programming,

consultancy and related activities

CCA 8.2

N/EL

8.3 Programming and

broadcasting activities

CCA 8.3

N/EL

Turnover of environmentally

sustainable activities

(Taxonomy-aligned) (A.1)

Of which Enabling

Of which Transitional

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL; N/EL (f)

8.3 Programming and

broadcasting activities

CCA 8.3

186.8

14%

N/EL

13%

Turnover of Taxonomy-eligible

but not environmentally

sustainable activities (not

Taxonomy-aligned activities)

(A.2)

186.8

14%

13%

A. Turnover of Taxonomy-

eligible activities (A.1 + A.2)

186.8

14%

13%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Turnover of Taxonomy-non-

eligible activities

1,158.0

86%

Total

1,344.8

100%


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Table 15. Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering the year 2024

Financial year 2024

2024

Substantial Contribution Criteria

DNSH criteria

('Do No Significant Harm')(h)

Economic Activities (1)

Code (a) (2)

CapEx (3)

Proportion of

CapEx, year 2024

(4)

Climate Change

Mitigation (5)

Climate Change

Adaptation (6)

Water (7)

Pollution (8)

Circular Economy

(9)

Biodiversity (10)

Climate Change

Mitigation (11)

Climate Change

Adaptation (12)

Water (13)

Pollution (14)

Circular Economy

(15)

Biodiversity (16)

Minimum

Safeguards (17)

Proportion of

Taxonomy-aligned

(a.1.) or eligible

(A.2.) CapEx, year

2023 (18)

Category enabling

activity (19)

Category

transitional activity

(20)

MEUR

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

8.2. Computer programming,

consultancy and related activities

CCA 8.2

N/EL

8.3 Programming and

broadcasting activities

CCA 8.3

N/EL

CapEx of environmentally

sustainable activities

(Taxonomy-aligned) (A.1)

Of which Enabling

Of which Transitional

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL; N/EL (f)

8.2. Computer programming,

consultancy and related activities

CCA 8.2

6.6

N/EL

8.3 Programming and

broadcasting activities

CCA 8.3

53.6

35%

N/EL

33%

CapEx of Taxonomy-eligible

but not environmentally

sustainable activities (not

Taxonomy-aligned activities)

(A.2)

60.2

39%

37%

A. CapEx of Taxonomy-eligible

activities (A.1 + A.2)

60.2

39%

37%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

CapEx of Taxonomy-non-

eligible activities

94.6

61%

Total

154.8

100%


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Table 16. Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering the year 2024

Financial year 2024

2024

Substantial Contribution Criteria

DNSH criteria

('Do No Significant Harm')(h)

Economic Activities (1)

Code (a) (2)

OpEx (3)

Proportion of OpEx,

year 2024 (4)

Climate Change

Mitigation (5)

Climate Change

Adaptation (6)

Water (7)

Pollution (8)

Circular Economy

(9)

Biodiversity (10)

Climate Change

Mitigation (11)

Climate Change

Adaptation (12)

Water (13)

Pollution (14)

Circular Economy

(15)

Biodiversity (16)

Minimum

Safeguards (17)

Proportion of

Taxonomy-aligned

(a.1.) or eligible

(A.2.) OpEx, year

2023 (18)

Category enabling

activity (19)

Category

transitional activity

(20)

MEUR

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y; N; N/EL

(b) (c)

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

8.2. Computer programming,

consultancy and related activities

CCA 8.2

N/EL

8.3 Programming and

broadcasting activities

CCA 8.3

N/EL

OpEx of environmentally

sustainable activities

(Taxonomy-aligned) (A.1)

Of which Enabling

Of which Transitional

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL; N/EL (f)

8.2. Computer programming,

consultancy and related activities

CCA 8.2

19.2

47%

N/EL

31%

8.3 Programming and

broadcasting activities

CCA 8.3

10.9

27%

N/EL

25%

OpEx of Taxonomy-eligible but

not environmentally

sustainable activities (not

Taxonomy-aligned activities)

(A.2)

30.1

74%

56%

A. OpEx of Taxonomy-eligible

activities (A.1 + A.2)

30.1

74%

56%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

OpEx of Taxonomy-non-eligible

activities

10.6

26%

Total

40.7

100%


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ESRS E1 Climate change

Strategy

E1-1 Transition plan for climate change mitigation

Sanoma’s transition plan related to climate change mitigation focuses on minimising its climate impacts. The Science Based

Targets initiative (SBTi) has approved Sanoma’s near-term 2030 science-based emission reduction targets for its own

operations (Scope 1 and 2) and value chain (Scope 3). This validation confirms that Sanoma’s climate strategy and business

model are compatible with the transition to a sustainable economy and the limiting of global warming to 1.5-degrees in line

with the Paris Agreement.

Sanoma’s validated SBTi target for its own operations is to reduce combined absolute Scope 1 and 2 GHG emissions by 42%

by 2030, from the 2021 base year. A majority of Sanoma’s greenhouse gas emissions originate from indirect Scope 3

emissions. Sanoma aims to reduce Scope 3 emissions by 38% by 2030, from the 2021 base year. This Scope 3 target applies

to Sanoma’s GHG emissions under categories 1 Purchased goods and services, 3 Fuel and energy-related activities and 4

Upstream transportation and distribution, which together accounted for over 75% of Sanoma’s value chain emissions in 2024.

Methodologies and assumptions used for these targets include using the SBTi guidelines as well as the cross-sector (ACA)

reduction pathways. Further details are available under E1-4.

Sanoma has not identified significant capital expenditure and operational expenses which would currently be required to

implement its climate transition plan. To ensure compatibility with the transition to a sustainable economy and with the limiting

of global warming in line with the Paris Agreement, Sanoma aims to adjust its business through decarbonisation levers

including GHG emissions reductions through energy efficiency, energy consumption reduction and use of renewable energy in

Scope 2 as well as supplier cooperation, material efficiency and energy consumption reduction in Scope 3. Key actions

planned to reduce direct own operations’ Scope 1 emissions include continuous transition to electricity and hybrid cars where

possible, taking into consideration country-specific availability of the electricity charging grid. Key actions planned to reduce

own operations’ indirect Scope 2 emissions include switching the energy formats to fossil-free and renewable sources as well

as the purchase of guarantees of origin for renewable and fossil-free energy use. Sanoma’s Scope 3 emissions reduction

initiatives focus on cooperating with the suppliers to reduce GHG emissions related to materials production and transport.

Sanoma measures the performance of its suppliers by collecting GHG emissions data and encourages suppliers to measure

their climate footprint, set science-based targets and transition to renewable energy.

The digitalisation of the media business is expected to reduce GHG emissions related to print media. Sanoma expects the

transition from print to digital to continue and as a result, the amount of print-related (paper, materials, logistics) GHG

emissions to decline. In its learning business, Sanoma continues to offer digital and blended (combined print and digital)

products, with digitalisation gradually gaining ground. The key actions include optimising the GHG emissions related to

upcoming curriculum renewals in cooperation with the paper suppliers. Sanoma also monitors GHG emissions related to its

digital products and develops methods to ensure the efficient use of data.

Sanoma’s climate transition plan is embedded to the Group’s overall strategy through linking the targets to funding and

executive management’s short-term incentives. Sanoma has linked the SBTi climate targets as sustainability KPIs to its EUR

300 million Syndicated Revolving Credit Facility. Sanoma’s executive management’s short-term incentives for 2024 included

metr related to Sanoma’s science-based emission reduction targets. These incentives are described in more detail under

ESRS 2 GOV-3.

Sanoma’s sustainability management approach supports in ensuring the transition plan is taken into account in business

decision-making and financial planning. The transition plan was approved in 2021 by Sanoma’s Board, AC and EMT. During

2021–2024, Sanoma has made progress in implementing its climate transition plan by reducing its absolute combined Scope

1 and 2 emissions by 44% and Scope 3 emissions in categories 1, 3 and 4 by 38%. Progress and actions in 2024 are

described under E1-3.

As the EU Taxonomy’s list of potentially eligible activities does not include any learning or news media-related economic

activities relevant to Sanoma, Sanoma’s core business activities are not currently included into the scope of the EU Taxonomy.

Therefore Sanoma does not have plans in place to align its economic activities (revenues, CapEx, OpEx) with the criteria

established in the EU Commission Delegated Regulation 2021/2139 (29).

Sanoma is not excluded from the EU Paris-Aligned Benchmarks. Sanoma does not identify any significant locked-in GHG

emissions e.g., future GHG emissions that are likely to be caused by key assets or products sold within their operating lifetime.

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

Sanoma’s climate strategy is an important part of its 2030 business strategy, ensuring the business meets the requirements of

a low-carbon economy, aligned with the Paris Agreement 1.5-degree goal.

To identify and control environmental risks and opportunities, Sanoma evaluates climate- and biodiversity-related physical and

transition risks annually. In 2024, this assessment was conducted as part of the double materiality assessment. This resilience

analysis includes risk and opportunity identification and assessment, defining risk management activities as well as reporting

of risks and opportunities to the EMT, AC and Board, where relevant. The assessment is qualitative and quantitative and

performed annually by the Sustainability and Procurement Teams, collecting information also from other relevant functions.

Sanoma applies the financial thresholds, the likelihood scale as well as time horizons of its Enterprise Risk Management

(ERM) process in its risk, opportunity and resilience analysis. Time horizons for sustainability include short term (0–1 years),

medium term (1–3 years), and long term (3 years and beyond). Further details about the EMR process and double materiality

assessment are available under ESRS 2 SBM-3 and IRO-1. Time horizons vary from the ones used in setting Sanoma’s

greenhouse gas emission reduction targets, where the long-term time horizon extends to 2030. Sanoma’s resilience analysis

covers direct operations as well as the upstream and downstream value chain. Tier 1 suppliers were analysed in particular, but

for example to analyse the printing houses’ ability to reduce emissions, also tier 2 paper suppliers data was reviewed.

Sanoma uses scenario analysis to identify risks and opportunities and to enrich its resilience analysis and understanding of

transition and physical risks. In its assessment, Sanoma has used climate scenarios, including scenarios in line with limiting

the global warming to 1.5-degrees with no or limited overshoot and high-climate scenarios, such as RCP 1.9, RCP 4.5, RCP

8.5 and IEA SDS to understand potential alternative futures and to develop strategies to mitigate identified risks based on

scenario outcomes. This includes assessing the impacts of current and future regulations on operations and supply chains,

evaluating changes in customer behaviour and market demand for sustainable products as well as identifying opportunities for

adopting new technologies to reduce emissions. Relevant risks are managed through operational policies and the

Sustainability Strategy.


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Sanoma identifies certain climate-related physical risks which may impact the business on short-, medium- and long-term

timeframes. Acute physical risks like flooding, driven by increased severity of extreme weather events, may pose a risk to

Sanoma’s printing houses, facilities and warehouses. The risk is particularly related to damages to facilities due to floods and

heavy rain in high flooding risk locations. To manage and mitigate the risk of damage, Sanoma develops comprehensive

response plans and acquires insurances. During 2024, some of Sanoma’s facilities in Spain suffered some damages due to

heavy flooding.

Sanoma identifies certain transition risks which may impact the business on short-, medium- and long-term timeframes.

Sanoma identifies a risk of increasing complexity and cost associated with compliance with enhanced emissions- and

sustainability-reporting obligations and regulations. Regulations, such as the Corporate Sustainability Reporting Directive

(CSRD) and the EU Deforestation Regulation (EUDR), require extensive data collection, data management and reporting

infrastructure. This can lead to increased operational costs, both directly within Sanoma’s operations and indirectly through the

supply chain, as suppliers also face stricter emissions regulations. Additionally, non-compliance with these regulations could

result in financial penalties and reputational damage, impacting business operations and financial performance. Changing

customer behaviour can also be a risk if customer expectations are not met. Sanoma addresses transition risks by monitoring

and preparing to comply with regulations such as the CSRD, CSDDD, and EUDR, advancing its climate transition plan and

working with the suppliers to reduce emissions and transition to lower-carbon products.

Sanoma also identifies certain opportunities which relate to the implementation of its climate transition plan. Transparent

climate- and biodiversity action may offer the opportunity to enhance brand value and increase demand. Sanoma also

identifies a number of climate-related opportunities through reducing indirect operating costs. By transitioning to renewable

energy sources and implementing energy-efficiency projects, Sanoma can lower its energy consumption, emissions and

related costs. For example, AI optimisation of heating in facilities and the switch to renewable heating in Finland have already

led to energy savings. Sanoma also identifies opportunities linked to sustainable finance, involving leveraging its climate

targets to access capital at more favourable rates. By aligning its climate strategy with the Science Based Targets initiative

(SBTi) and incorporating these KPIs into its EUR 300 million Syndicated Revolving Credit Facility, Sanoma can benefit from

reduced interest costs when meeting its emission reduction targets.

Sanoma has not identified reasons for significant adjustments to its strategy or business model as a result of the climate-

related resilience analysis. Sanoma evaluates that adaptation to climate change over the short-, medium- and long-term does

not pose a significant threat to securing ongoing access to finance. The shift to digital is expected to continue especially in its

media business, which will support its climate transition. The transition towards digital is expected to also increase energy

consumption and, through that, demand for fossil-free energy. Sanoma’s resilience analysis includes uncertainties, which

relate to the length of the time horizons used in the analysis and the severity types of the scenarios used. Sanoma aims to

further develop its scenario analysis going forward. Sanoma’s ability to adjust or adapt its strategy and business model to

climate change depends on and includes transitioning to renewable and fossil-free energy sources, engaging and cooperating

with suppliers to reduce GHG emissions, setting and achieving ambitious science-based targets for GHG emissions

reductions as well as regular updates to the Sustainability Strategy and risk management processes to address emerging risks

and opportunities.

Impact, risk and opportunity management

E1-2 Policies related to climate change mitigation and adaptation

In this section, Sanoma describes the policies and principles adopted to manage environmental impacts. The principles set in

Sanoma’s policies and standards govern Sanoma and its subsidiaries and apply to all companies, in which Sanoma has

financial control. Sanoma’s policies are approved by the Board of Directors. Sanoma’s internal standards are approved by the

President and CEO. The President and CEO and the Executive Management Team (EMT) are ultimately responsible for

ensuring that Sanoma personnel is aware of and complies with the policies. Sanoma’s Group Sustainability team is

responsible for updating, communicating and leading the implementation of the Sustainability and Human Rights Policy as well

as the Environmental Standard. Sanoma’s Group Procurement team is responsible for updating, communicating and leading

the implementation of the Supplier Code of Conduct (SCoC).

Stakeholders’ views were taken into consideration in both policy and standard setting by analysing insights received from the

suppliers, customers and employees. The SCoC, the Environmental Standard and the Sustainability and Human Rights Policy

are made available to stakeholders, for example internally to employees via Sanoma’s intranet. In addition, relevant parts from

each policy are embedded into Sanoma’s annual Code of Conduct refresher training which is mandatory for all employees.

Externally, these policies and standards are made available to stakeholders, such as customers and suppliers, on Sanoma’s

website. Sanoma also engages with its suppliers, such as paper and print suppliers, to ensure the implementation of its

climate transition plan.

Supplier Code of Conduct (SCoC)

Sanoma’s key standard related to guiding its suppliers is the SCoC, last updated in November 2024. The SCoC outlines

Sanoma’s environmental principles and requirements towards all Sanoma suppliers and addresses climate change, use of

renewable energy, use of plastics, deforestation or forest degradation impacts, waste management, circularity and pollution

prevention. The SCoC sets out the ethical standards and responsible business principles key suppliers and service providers

are required to comply with. It applies to all Sanoma suppliers in all geographies.

Sustainability and Human Rights Policy

The Sustainability and Human Rights Policy, published in December 2024, outlines Sanoma’s sustainability-related principles

and summarises its core commitments in own operations. It defines Sanoma’s sustainability due diligence process in general,

including identification, assessment, management and remediation of sustainability-related impacts. This policy also outlines

Sanoma’s sustainability management model as well as the responsibilities to identify impact, risks and opportunities though

the double materiality assessment process. As a signatory of the UN Global Compact (UNGC), Sanoma commits to the UN

Guiding Principles and the Agenda 2030, including UN Sustainable Development Goals (SDGs). In relation to environmental

topics, Sanoma commits to the Ten Principles related to fundamental responsibilities, especially environment, as well as the

Rio Declaration on Environment and Development. The policy applies to all Sanoma operations across Europe.

Environmental Standard

Sanoma’s key standard related to environmental impacts is the Environmental Standard, published in December 2024.

Sanoma's Environmental Standard outlines Sanoma’s environmental principles and determines how Sanoma manages its

environmental impacts. The Environmental Standard addresses climate change adaptation and mitigation, energy efficiency,


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use of fossil-free energy, use of plastics, biodiversity impacts, waste management, circularity and pollution prevention. It

applies to all Sanoma operations across Europe.

As a signatory of the United Nations (UN) Global Compact, Sanoma recognises the importance of the Agenda 2030 and UN

Sustainable Development Goals (SDGs) and through the Environmental Standard, advances especially SDGs related to

Responsible consumption and production (11), Climate Change (13) and Partnerships for the Goals (17). Sanoma is

committed to the UN Ten Principles related to fundamental responsibilities, such as the environment as well as to the Rio

Declaration on Environment and Development. Sanoma adheres to relevant local, national, and international environmental

laws and regulations. Sanoma is a supporter of the European Climate Pact. Launched by the European Commission, the

Climate Pact is part of the European Green Deal and is helping the EU to meet its goal to become climate-neutral by 2050.

Third-party standards and initiatives that are respected through the implementation of the policy include FSC and PEFC

certification schemes, and the environmental management system, such as the ISO 14001 certification.

E1-3 Actions and resources in relation to climate change policies

Sanoma’s climate change mitigation focuses on reducing GHG emissions in both its own operations (Scope 1 and 2) and

value chain (Scope 3). Sanoma’s targets, approved by the Science Based Targets initiative (SBTi), ensure that the ambition of

Sanoma’s climate strategy is compatible with limiting of global warming in line with the Paris Agreement. Sanoma’s key

actions taken in 2024, and planned for the future, are aligned with its SBTi targets and actions related to both climate change

mitigation and adaptation are to be completed by 2030. Sanoma has allocated resources to the implementation of its climate

transition plan, including e.g., investments in supplier cooperation, renewable and fossil-free energy, energy efficiency, and AI

optimisation. Sustainability and Procurement teams cooperate with both own production as well as suppliers’ production teams

to reduce emissions. Sanoma hosts internal environmental working groups in both SBUs to ensure progress in emission

reduction initiatives. Sanoma’s financial resources for the implementation of the climate transition plan are integrated into its

overall financial plan. In general, investments have been and are expected to be minor. No significant monetary amounts of

capital expenditure and operational expenses are currently required to implement the actions taken or planned. Sanoma does

not expect that its ability to implement its climate transition plan depends significantly on the availability and allocation of

financial and operational resources. In own operations Scope 1 and 2, minor investments are required in renewable and fossil-

free energy. In Scope 3, the success of actions is mainly dependent on the cooperation and commitment of suppliers and

partners to reduce emissions and transition to a low-carbon economy.

Energy

To reduce the impacts of energy use, Sanoma invests in energy efficiency initiatives, own energy production and the use of

fossil-free and renewable energy sources. The scope of these actions is Sanoma’s own operations, more specifically printing

houses in Finland and facilities and warehouses throughout Europe. During 2024, 2,125 solar panels were planted on the

roofs of the Sanoma House in Helsinki and Manu printing house in Tampere, Finland to increase own renewable electricity

production. In 2024, all facilities and printing houses in Finland used fossil-free electricity. In addition, office facilities in

Sweden, Poland, Netherlands, Belgium, Spain and Italy used fossil-free or renewable electricity. In Finland, facilities and

printing houses also transitioned to fully renewable heating during 2023–2024. Renewable heating was also used in the

Netherlands, Sweden and Norway. In 2024, Sanoma also carried out office restructuring projects and discontinued

unnecessary office facilities in Finland, Sweden, Norway, France and the Netherlands. As a result of these projects, the

consumption of electricity, district heating and cooling in both owned and leased properties controlled by Sanoma declined in

2024. As is a continuous action to reduce the heating consumption, Sanoma uses AI optimisation of heating use in Finland in

the Sanoma House headquarters in Helsinki and in both printing houses. In Sanoma’s printing houses and facilities in Finland,

Italy and Norway, international standards, such as ISO 14001 and Breeam-certification, create a foundation for energy

management.

Climate change mitigation in Scope 1 and 2 own operations

Sanoma has reduced its combined Scope 1 and 2 emissions by 44% by the end of 2024 from the 2021 baseline. The scope of

actions related to Scope 1 and 2 emissions reductions is Sanoma’s own operations, more specifically printing houses in

Finland and facilities and warehouses throughout Europe. In Scope 2, these reductions are especially a result of Sanoma’s

renewable and fossil-free electricity and heating initiatives, described above under Energy. In addition, office floorspace

restructuring reduced energy consumption both in Media Finland and Learning and resulted in reduced Scope 2 emissions. To

reduce its emissions related to company cars in Scope 1, Sanoma renewed its car policies in Italy, the Netherlands and

Belgium during 2024 to support the transition to electric and hybrid cars.

Sanoma’s key actions to reduce energy-related own operations Scope 2 emissions further involve continuing the transition to

renewable energy sources especially in heating and cooling and improving energy efficiency across operations. The

intermediate targets included the aim to achieve 100% fossil-free electricity in 2024 – with 97% level achieved – and

transitioning to fossil-free energy by 2030. Initiatives also include continuing the restructuring of office spaces for better energy

efficiency. In Scope 1, Sanoma continues to shift towards electric and hybrid company cars. The scope of these key actions

covers Sanoma’s own operations, including car policies as well as printing houses, offices, and warehouses across multiple

countries in Europe.

Climate change mitigation in the Scope 3 value chain

Sanoma’s most significant climate impacts derive from the indirect emissions of its supply chain. Sanoma has reduced Scope

3 emission by 38% in categories 1, 3 and 4 by the end of 2024 from the 2021 base year, reaching its SBTi target already

ahead of 2030. Categories 1, 3 and 4 represented over 75% of Sanoma’s Scope 3 emissions in 2024.

To reduce value chain Scope 3 emissions, key actions during 2024 included partnering with suppliers, as the majority of Scope

3 emissions originate from purchases of materials, logistics and production. The scope of actions related to Scope 3 emissions

reductions is Sanoma’s upstream value chain in all sourcing countries. During 2024, Sanoma continued its cooperation with

paper suppliers to use lower-carbon paper. Sanoma also continued to cooperate with its printing suppliers to ensure ambitious

target setting and reliable carbon accounting. Annually, Sanoma collects supplier-specific emissions data from paper, printing

and logistic suppliers, and follows-up on key suppliers’ climate targets. During 2024, a Supplier Day was hosted to enhance

cooperation with paper and print suppliers, including e.g., know-how on product-level emission calculations, EUDR, CSRD,

CSDDD and other regulatory developments. In addition to supplier cooperation, the transition from print to digital continued in

the media business, and as a result, the amount of print-related (paper, materials, logistics) GHG emissions declined. In its

learning business, paper consumption also decreased, and following this, the printing-related emissions (energy, materials and

logistics) also declined. As other purchased services, such as IT equipment, consulting, marketing, cloud-services and TV

productions, also generate a portion of Sanoma’s GHG emissions, Sanoma continuously develops its calculation models and

cooperation with these suppliers to ensure further reductions.


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Sanoma’s key actions to reduce value chain Scope 3 emissions further include cooperation with its paper, printing and

logistics suppliers. Sanoma aims to continue reducing paper-related emissions through more extensive use of low-carbon

paper qualities. In cooperation with logistic suppliers, Sanoma aims to reduce GHG emissions through further use of low-

carbon transport options. Some further emissions reductions are expected especially as a result of the digitalisation of media.

In the learning business, future curriculum renewals may cause increases in emissions, which Sanoma aims to prevent in

advance through, for example, changes in paper carbon profiles to low-carbon options and optimising of paper weights in its

products.

Climate change adaptation

Sanoma adapts to transition risks related to its customers and stakeholders expectations through its climate transition plan,

which is described under climate change mitigation. To meet the growing reporting and other regulatory requirements,

Sanoma invested in 2024 in a new reporting tool. Sanoma will continue to develop compliance by ensuring adequate

resources as well as supplier cooperation to ensure data quality and availability.

Sanoma adapts to physical risks related to climate change through its operational policies, contingency planning and

insurances. To prepare for and manage potential physical risks, Sanoma has continuity and disaster recovery plans in place

for its critical systems and operations. Sanoma’s insurance programme provides coverage for insurable hazard risks, subject

to insurance terms and conditions. The scope of actions related to physical risks is Sanoma’s own operations, more

specifically printing houses in Finland and facilities and warehouses throughout Europe.

Metrics and targets

E1-4 Targets related to climate change mitigation and adaptation

Energy

Sanoma aims to transition to fossil-free energy (electricity, heating, cooling and reserve power) by 2030. In addition, Sanoma

aims to use only fossil-free or renewable electricity. Both targets were established in 2021. As Sanoma’s energy-related

targets are continuous, no base-year and values are disclosed. The target has been established with input from internal

stakeholders at Sanoma. The target covers all facilities, warehouses and printing houses operated by Sanoma. The target is in

line with Sanoma’s Environmental Standard and supports in the achievement of Scope 1 and 2 emission reduction targets.

In 2024, 92% of all energy used by Sanoma was already fossil-free. The increase in the share of fossil-free energy followed

Sanoma’s switch to renewable heating in Finland where all electricity and heating used is fossil-free or renewable at the end of

2024. Sanoma also finalised its transition to fossil-free electricity in Sweden, Norway, Denmark, Netherlands and Spain. The

share of fossil-free renewable and nuclear electricity was 97%.

Climate change mitigation

Sanoma measures and evaluates its performance of mitigating its climate and GHG emission impacts through its science-

based emission reduction targets described under E1-1. The Science Based Targets initiative (SBTi) has approved Sanoma’s

near-term science-based emission reduction targets for own operations (Scope 1 and 2) and value chain (Scope 3). This

validates that Sanoma’s GHG emission reduction targets are compatible with limiting global warming to 1.5-degrees. The SBTi

targets are based on IPCC reports and projections. The effectiveness of these metrics is evaluated by analysing Sanoma’s

performance related to emission reductions.

Sanoma’s targets include a commitment to reduce Scope 1 and 2 emissions by 42% and Scope 3 emissions by 38% by 2030,

compared to the 2021 baseline. Methodologies and assumptions used for these targets include using the SBTi guidelines as

well as the cross-sector (ACA) reduction pathways. Sanoma’s GHG emission reduction targets are gross targets, meaning

that no GHG removals, carbon credits or avoided emissions as means of achieving the GHG emission reduction targets have

been included. Internal stakeholders were involved in Sanoma's climate target setting project through workshops. Customers,

employees and suppliers views were considered in target setting through Sanoma’s materiality assessment conducted for the

Sustainability Strategy in 2021.

Table 17. E1-4-34 and AR 31 Science Based Targets initiative validated GHG emission reduction targets


	Base year 2021, tCO2-eq	Emissions in reporting year 2024, tCO2-eq	Share of emissions reduction in reporting year compared to 2021, %	Emission reduction 2030 target, %	1.5 degree-aligned pathway value 2030, tCO 2-eq
Scope 1 and Scope 2 market-based GHG emissions	8,974	5,038	-44%	-42%	5,205
Scope 3 GHG emissions, categories 1, 3 and 4	123,126	76,473	-38%	-38%	76,338

Table 18. E1-4 AR 28 Cross-sector reduction pathway used to model targets


	2030	2050
Cross-sector (ACA) reductions pathway based on the year 2020 as the reference year	-42%	-90%

Source: Based on Pathways to Net-zero –SBTi Technical Summary (Version 1.0, October 2021)

As critical assumptions for setting GHG emission reduction targets, Sanoma has considered future developments, such as

changes in paper volumes and print production, shifts in customer demand especially related to the pace of digitalisation in

both businesses as well as regulatory changes and the general transition pace towards fossil-free energy formats. All

developments considered have the capacity to reduce Sanoma’s emissions. Increases in paper volumes and print production

following curriculum renewals in particular, may also cause increases in emissions, which Sanoma aims to prevent in advance

through, for example, changes in paper carbon profiles to low-carbon options and optimising of paper weights. Sanoma’s key

decarbonisation levers include GHG emissions reductions through energy efficiency, consumption reduction and use of

renewable energy in Scope 2 as well as supplier cooperation, material efficiency and consumption reduction in Scope 3. In

addition, following the media business digitalisation, decreasing usage of printed media will reduce Scope 3 emissions. To

review opportunities to meet its targets and to identify potential decarbonisation levers, Sanoma has considered climate

scenarios. The scenarios used have been described under E1 SBM-3 and E1-1. Sanoma is currently not planning to adopt

new technologies to achieve GHG emission reduction targets.


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In 2024, Sanoma’s own operations' emissions (Scope 1 and 2) declined by 44% compared to the 2021 base year. The

Company achieved significant reductions in Scope 2 emissions mainly due to continuing to transition to renewable heating in

addition to the use of fossil-free electricity. In 2024, Sanoma’s value chain emissions (Scope 3) declined by 38% in categories

1, 3 and 4 compared to the 2021 base year. These categories represented more than 75% of Sanoma’s Scope 3 emissions

and are covered by Sanoma’s SBTi target.

Sanoma’s baseline year for emissions reductions is 2021, providing a reference point for measuring progress. It includes all

relevant emissions from owned and controlled operations, as well as value chain emissions. The baseline is representative of the

Company's activities and considers external factors such as market trends and regulatory changes. Sanoma has, for example,

reviewed the baseline calculations for potential anomalities in a certain year by comparing both the data used and emission

factors used, to the previous years data and factors. Sanoma evaluates annually the need to restate the previous years

emissions figures to ensure comparability based on potential changes in the business. Sanoma’s targets are set for 2030, and

progress is tracked annually. Sanoma ensures the consistency of GHG emission reduction targets with GHG inventory

boundaries by using the GHG Protocol for emissions calculations and including all operations under financial control. Sanoma’s

emission reduction targets cover all relevant Scope 1, 2, and 3 emissions categories. Inventory boundaries and GHG's included

have been further described under E1-6.

Table 19. E1-4 MDR-T 80 Absolute value of GHG emission reductions


Absolute value of Greenhouse gas emissions reduction as of emissions of base year 2021	2024
Total	-46,627
Scope 1, own operations direct GHG emissions	259
Scope 2, own operations market-based energy indirect GHG emissions	-4,195
Scope 2, own operations location-based energy indirect GHG emissions	-4,680
Scope 3, other indirect GHG emissions, all categories	-42,690

Table 20. E1-4 MDR-T 80 GHG emission reductions as %


% of Greenhouse gas emissions reduction as of emissions of base year 2021	2024
Total	-31%
Scope 1, own operations direct GHG emissions	7%
Scope 2, own operations market-based energy indirect GHG emissions	-79%
Scope 2, own operations location-based energy indirect GHG emissions	-55%
Scope 3, other indirect GHG emissions, all categories	-31%

Climate change adaptation

Sanoma tracks the effectiveness of its climate change adaptation actions related to the physical risks of climate change

through for example regular continuity and disaster recovery planning, and insurance coverage reviews in its facilities. To

review the effectiveness of its measures related to transition risks, Sanoma conducts internal audits, such as the readiness

assessment performed in 2024 in relation to the CSRD reporting requirements. In addition, Sanoma tracks its stakeholders

views related to its climate action.

Decarbonisation levers

Sanoma’s key decarbonisation levers include transitioning to fossil-free energy on own operations and supply chain, energy

efficiency, materials efficiency, optimisation of materials use and supplier cooperation. The transition to fossil-free energy

reduces both own operations Scope 2 emissions and Scope 3 value chain emissions. Energy efficiency improvements and the

use of AI to optimise energy consumption can lead to further reductions in energy consumption in owned and leased

properties. Supplier engagement is also one of Sanoma’s decarbonisation levers. Encouraging suppliers to measure and

reduce their GHG emissions, particularly in the categories of purchased goods and services and transportation, enhances the

ability to reduce Sanoma’s Scope 3 emissions. In addition to supplier cooperation, Sanoma minimises material consumption,

analyses the carbon profiles of its materials usage and changes materials to reduce its emissions. Digitalisation will also

reduce Sanoma’s materials-related emissions.


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E1-5 Energy consumption and mix

Sanoma’s total energy consumption in 2024 was 34,664 MWh. The share of renewable and fossil-free energy in its overall

energy mix was 92%. The energy figures cover all owned and leased properties controlled by Sanoma, including printing

houses, offices, and warehouses across all Sanoma’s operating countries. Sanoma’s energy data has been collected from

energy management systems and landlords. Less than 1% of Sanoma’s energy consumption figures are based on estimates.

Sanoma classifies energy as renewable or nuclear-based if the origin of the purchased energy is either defined in the

contractual instruments with its suppliers or guarantees of origin are available to prove the source. If the origin is unknown, the

source is classified as fossil. Data related to self-generated energy e.g., solar panels, has been collected from energy

management systems of Sanoma House in Helsinki and Manu printing house in Tampere with no significant assumptions to

disclose which would impact the data coverage.

Table 21. E1-5 AR 34 Energy and fuel consumption


Energy consumption and mix	2024
(1) Fuel consumption from coal and coal products (MWh)	0
(2) Fuel consumption from crude oil and petroleum products (MWh)	40
(3) Fuel consumption from natural gas (MWh)	0
(4) Fuel consumption from other fossil sources (MWh)	0
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)	2,626
(6) Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5)	2,666
Share of fossil sources in total energy consumption (%)	8%
(7) Consumption from nuclear sources (MWh)	18,482
Share of consumption from nuclear sources in total energy consumption (%)	53%
(8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh)	0
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)	13,318
(10) The consumption of self-generated non-fuel renewable energy (MWh)	238
(11) Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10)	13,556
Share of renewable sources in total energy consumption (%)	39%
Total energy consumption (MWh) (calculated as the sum of lines 6, and 11)	34,664
E1-5-39 Renewable energy production	238
E1-5-39 Non-renewable energy production	40
Total energy consumption from activities in high climate impact sectors (MWh)1	18,891
Energy intensity (total energy consumption per net revenue) from activities in high climate impact sectors1	75

1 To determine energy intensity, Sanoma has reviewed the high climate impact sectors list of the EU Commissions Delegated Regulation (EU) 2022/1288. Sanoma

has two printing houses in Finland, which are classified under C18.1.1 Printing of newspapers. The net revenue from Sanoma’s printing houses is included under the

Media Finland net sales category for print, which amounted EUR 251.1 million in 2024. For further details on the net sales reconciliation, see section Report of the

Board of Directors, Media Finland.


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E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions

Sanoma’s operations generate greenhouse gas emissions in our own operations (Scope 1 and 2) and value chain (Scope 3).

In 2024, Sanoma’s total market-based GHG emissions were 101,810 tCO2e. Sanoma’s own operations’ Scope 1 and 2 GHG

emissions represented 5% of our total GHG emissions in 2024. Value chain (Scope 3) emissions are the most significant

source of GHG emissions for Sanoma. In 2024, 95% of Sanoma’s total GHG emissions resulted from the value chain. In

Scope 1, no GHG emissions originate from regulated emission trading schemes.

Table 22. E1-6 AR 48 Gross GHG emissions by categories


Gross GHG emissions categories	Retrospective1				Milestones and target years2
	Base year 2021	2023	2024	Change, %	2025	2030	(2050)	Annual % Target / Base year
Scope 1 GHG Emissions
Gross Scope 1 GHG emissions (tCO2-eq)	3,658	n/a	3,917	n/a	2,975	2,122	n/a	4.6%
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%)	0%	n/a	0%	n/a
Scope 2 GHG Emissions
Gross location-based Scope 2 GHG emissions (tCO2-eq)	8,547	n/a	3,867	n/a	n/a	n/a	n/a	n/a
Gross market-based Scope 2 GHG emissions (tCO2 -eq)	5,316.00	n/a	1,121	n/a	4,324	3,083	n/a	4.6%
Significant Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions (tCO2-eq)	139,463	n/a	96,773	n/a	n/a	n/a	n/a	n/a
1 Purchased goods and services	99,350	n/a	57,953	n/a	82,571	61,597	n/a	4.2%
2 Capital goods	3,438	n/a	4,539	n/a	n/a	n/a	n/a	n/a
3 Fuel and energy-related Activities (not included in Scope1 or Scope 2)	2,549	n/a	2,333	n/a	2,119	1,580	n/a	4.2%
4 Upstream transportation and distribution	21,227	n/a	16,188	n/a	17,642	13,161	n/a	4.2%
5 Waste generated in operations	183	n/a	317	n/a	n/a	n/a	n/a	n/a
6 Business travel	1,009	n/a	1,266	n/a	n/a	n/a	n/a	n/a
7 Employee commuting	1,287	n/a	3,878	n/a	n/a	n/a	n/a	n/a
11 Use of sold products	3,435	n/a	6,662	n/a	n/a	n/a	n/a	n/a
12 End-of-life treatment of sold products	1,699	n/a	458	n/a	n/a	n/a	n/a	n/a
15 Investments	5,286	n/a	3,180	n/a	n/a	n/a	n/a	n/a
Total GHG emissions
Total GHG emissions (location-based) (tCO2-eq)	151,668	n/a	104,556	n/a	n/a	n/a	n/a	n/a
Total GHG emissions (market-based) (tCO2 -eq)	148,437	n/a	101,810	n/a	n/a	n/a	n/a	n/a

1 Comparison figures 2023 not disclosed in the first Sustainability Statement.

2 Milestones and targets have been derived from Sanoma’s absolute science-based targets for Scope 1 and 2 combined and Scope 3 categories 1, 3 and 4. The targets have been reported in the table as illustrative absolute emission targets for 2030. Sanoma has not set targets that extend to 2050.


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Table 23. E1-6 AR 54 GHG intensity based on net revenue


GHG intensity per net revenue	Baseline year 2021	2024	% Change
Total GHG emissions (location-based) per net revenue (tCO2-eq/net sales1)	121	78	-36%
Total GHG emissions (market-based) per net revenue (tCO2-eq/net sales1)	119	76	-36%

1Sanoma uses net sales as the denominator in the calculation of the GHG intensity.

GHG emissions accounting principles

Sanoma reports greenhouse gas (GHG) emissions according to the Greenhouse Gas Protocol provided by the World

Business Council for Sustainable Development (WBCSD) and World Resources Institute (WRI). All relevant GHG emissions

have been included in Sanoma’s calculations. Exclusions to Sanoma’s Scope 3 GHG emission categories follow the GHG

Protocol guidance and have been estimated using the GHG Protocol Scope 3 Evaluator tool to identify relevant categories for

reporting. Following the GHG Protocol requirements, greenhouse gases (GHGs) included into Sanoma’s inventory, if relevant,

are carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur

hexafluoride (SF₆) and nitrogen trifluoride (NF₃). Following the GHG Protocol, these gases are required to be reported using

their 100-year Global Warming Potential (GWP) values as defined by the Intergovernmental Panel on Climate Change (IPCC)

Assessment Reports.

During 2024, no significant changes were made to the scope of Sanoma’s GHG emissions reporting, which would impact year-

on-year comparability. Figures are reported as tCO2 equivalents. Sanoma calculates GHG emissions using an organisational

control of financial control. This means that Sanoma includes into the GHG inventory all operations that it has the ability to direct

via financial and operational policies with a view of gaining economic benefit. All companies in Sanoma Group with majority

ownership (over 50%) have been considered in the calculations. In addition, associated companies’ and joint ventures’ Scope 1

and 2 emissions have been reported under category 15 Investments when relevant. In 2024, Sanoma sold the taxi ordering

service Valopilkku, which was acquired in 2023. Valopilkku does not impact Sanoma’s comparison figures, as it was not included

into Sanoma’s GHG emission figures for 2021-2023. The restatement of Valopilkku was planned to be conducted during 2024.

Sanoma’s emission calculation model has been developed in cooperation with external partners. Sanoma uses the Workiva tool

to calculate its Scope 1, 2 and Scope 3, category 2, 3 and 5 emissions. For other Scope 3 categories, Sanoma uses a tool build

using the Excel spreadsheets. Tools, emission factors and methods of collecting data are always chosen to ensure the best

available and reliable sources. Methods of collecting GHG emission data both from Sanoma’s systems and from suppliers are

continuously improved. Sanoma’s disclosure or methodology does not include any significant assumptions or limitations. From

Sanoma’s GHG inventory, an estimated 33% of Scope 3 is calculated using the spend-based screening method. Sanoma aims

to improve its data quality continuously in cooperation with suppliers. Sanoma uses FY 2021 as a base year for emission

reduction comparisons.

Own operations direct Scope 1 emissions:

■ Own operations direct (Scope 1) emissions include the use of owned and leased cars as well as reserve power mainly

used in printing houses. Emission sources include fuel consumption from owned and controlled vehicles and generators

used for reserve power. Emission factors used include road transport emission factors from Defra GHG Conversion

Factors and fuel emission factors from Statistics Finland. All gases are included in the Scope 1 calculation.

Own operations' indirect Scope 2 emissions (location- and market-based):

■ Sanoma reports Scope 2 GHG emissions using both the location-based and market-based methods. The location-based

method quantifies Scope 2 GHG emissions based on average energy generation emission factors for defined locations,

including local, subnational, or national boundaries. The market-based method quantifies Scope 2 GHG emissions based

on GHG emissions emitted by the generators from which the reporting entity contractually purchases electricity bundled

with instruments, or unbundled instruments.

■ Sanoma’s indirect own operations’ emissions result from energy used in printing houses, offices and warehouses.

Sanoma’s energy data has been collected from energy management systems and landlords. Sanoma does not sell

energy. The market-based method accounts for the purchase of renewable energy certificates and other contractual

instruments that attribute the use of renewable energy to Sanoma’s operations. Sanoma uses Energy Attribute Certificates

(EACs) to claim the use of renewable or fossil-free energy. Also, in some facilities agreements are made with utility

providers to purchase electricity that is bundled with renewable energy attributes. During 2024, Sanoma used contractual

instruments for all of the purchase of fossil-free energy.

■ Emission factors used for Sanoma’s Scope 2 calculations include country-specific electricity averages and market-based

electricity emission factors. International heat and cooling emission factors are from country or supplier-specific databases.

Residual mix is used only in the market-based method. Sanoma follows the market-based method in its Scope 2

reductions. Location-based figures have been calculated using average country-specific emission factors.

Value chain indirect Scope 3 emissions:

■ Category 1: Purchased goods and services includes GHG emissions from materials purchased for owned printing houses

and for printing Sanoma’s products by print suppliers. The category also includes transportation emissions from forest to

the paper mill, as Sanoma uses paper profile data declared by paper suppliers. For magazine and book printing suppliers,

data is collected as allocated energy and material consumption related to the production of our supply. Own printing

houses’ energy consumption is reported under Scope 2. The category 1 also includes emissions related to cloud-based

data usage and service providers (consulting, marketing, freelancers, TV production and broadcasting). Emissions from IT

equipment covers leased and owned items. Category 1 calculation method is hybrid. Emission factors are supplier-specific

factors, Defra GHG Conversion Factors, material-based emission factors from Ecoinvent and spend-based emission

factors from Exiobase. To ensure comparability, the impact of inflation is excluded by using the Exiobase emissions factor

when calculating emissions based on spend data.


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■ Category 2: Capital goods includes capital goods bought by the organisation (classified as CapEx in accounting):

properties renovations, equipment and new vehicles. Emission factors are spend-based emission factors from Exiobase.

■ Category 3: Fuel-and-energy-related activities (not included in Scope 1 or 2) include upstream emissions of purchased

fuels, purchased electricity and transmission and distribution (T&D) losses. Emission factors for upstream district heating

and fuel use are Well-to-tank (WTT) Defra GHG Conversion Factors. T&D losses for electricity is calculated using the

European Environmental Agency factors. For T&D losses of heating, EU averages have been used.

■ Category 4: Upstream transportation and distribution includes all purchased transportation-related emissions. This

category includes emissions from vehicles and ships distributing materials to both owned printing houses and to printing

suppliers. This category also includes delivering products to customers in both businesses: in Learning, from printing

supplier to warehouse and warehouse to customers, and in Media Finland, newspapers from owned printing houses to

customers and magazines from printing supplier to warehouse and from warehouse to customer. The calculation method

is a mix of tonne-kilometre and distance-based method. Road and sea transport emission factors are supplier-specific or

from Defra GHG Conversion Factors.

■ Category 5: Waste generated in operations includes emissions from waste generated in own and controlled operations,

referring to Sanoma’s printing houses and owned and leased office properties and warehouses. The calculation method is

the waste-type specific method. Waste treatment emission factors are from Defra GHG Conversion Factors. For facilities

and warehouses with missing data, waste data has been evaluated based on amount of employees of floorspace used.

For waste emission calculations all estimated waste categorised as mixed waste. The share of estimated data is 54%.

■ Category 6: Business travel includes emissions from travelling reported using data from travel claims and travel agency

data. The calculation method is a combination of the distance- and spend-based methods. Distance-based emission

factors are from Defra GHG Conversion Factors database and spend-based emission factors from Exiobase. There is a

minor below 3% exclusion in business travel emission calculation due to missing data.

■ Category 7: Employee commuting includes emissions calculated from employee travel patterns evaluated using headcount

data from each operating country. Emissions for working from home have not been included into the calculation, as

according to the GHG protocol guidance they are optional to calculate. Employee commuting emission factors are from

Defra GHG Conversion Factor.

■ Category 8: Upstream leased assets category is not relevant for Sanoma since it does not have relevant leased assets

that have not been reported under other categories. All leased facilities’ energy use is included in Scope 2 leased vehicles

and are calculated in Scope 1.

■ Category 9: Downstream transportation and distribution category is not relevant for Sanoma as all purchased

transportation emissions have been reported under category 4. Sanoma’s products and services do not create

transportation and distribution emissions after the point of sales.

■ Category 10: Processing of sold products. This category is not relevant since Sanoma does not sell intermediate products

that would require processing. Main products sold are books, newspapers, magazines and digital products.

■ Category 11: Use of sold products includes emissions from the digital use of Sanoma’s products. Emissions are generated

from the transmissions of data, network use and consumer device use during the use phase of digital products (TV, radio,

websites, software applications). Emissions from data centre use reported under category 1. Emissions from distribution of

broadcast television content are excluded from category 11. The total sum of this exclusion is estimated to account for

approx. 1% of Scope 3 emissions. Emission factors for upstream network use are from the International Energy Agency

(IEA) and estimated data transfer from Traficom.

■ Category 12: End-of-life treatment of sold products includes emissions from the waste treatment of sold products:

newspapers, magazines, books and purchased packaging. The calculation method is a waste-type specific method. Waste

treatment emission factors are from Defra GHG Conversion Factors.

■ Category 13: Downstream leased assets category is not relevant since Sanoma does not have downstream leased assets.

■ Category 14: Franchises category is not relevant as Sanoma has no franchises.

■ Category 15: Investments include Scope 1 and 2 emissions of Sanoma’s subsidiaries, associated companies and joint

ventures where relevant. These companies have been listed in the Consolidated Financial Statements, Note 6.4. Emission

factors are spend-based factors from Exiobase.

Biogenic emissions:

■ Scope 1 biogenic emissions include emissions from biofuels. In 2024, biogenic emissions related to Scope 1 were 457

tCO2-eq.

■ Scope 2 biogenic emissions are indirect emissions from the purchase of electricity, steam, heat, or cooling derived from

biomass and biofuels. In 2024, biogenic emissions related to Scope 2 were 3,032 tCO2-eq.

■ In Scope 3, categories 3, 4, 5, 6 and 7 include biogenic emissions related to biomass and biofuels. In 2024, biogenic

emissions related to Scope 3 were estimated to be 3,309 tCO2-eq.

■ Biogenic emissions have been reported excluding reported CO2 GHG emissions but including emissions of other types of

GHG. Emission factors for biogenic emissions calculations from Defra GHG Conversion Factors, Association of Issuing

Bodies (AIB), National Statistic Finland used for the biogenic emissions calculations.

GHG intensity based on net revenue:

■ GHG emission intensity has been calculated based on Sanoma’s net sales which amounted to EUR 1,344.8 million in

2024, as reconciliated in the Consolidated Financial Statements, Note 2.2.

E1-7 GHG removals and GHG mitigation projects financed through carbon credits

In addition to the science-based emission reduction targets, Sanoma aims to be carbon neutral in all operations by 2030. This

means that in 2030, Sanoma’s aim is to compensate emissions that cannot be avoided or reduced.


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ESRS E4 Biodiversity and ecosystems

Strategy

E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and business model

Sanoma’s biodiversity actions focus on three angles: minimising the biodiversity impacts of paper procurement through the

certified use of paper, managing biodiversity and paper-related risks, and, as climate change is a significant driver of

biodiversity, Sanoma’s climate transition plan described under E1-1.

Sanoma evaluates its current business model to be resilient in regards to impacts and risks related to biodiversity. As a

sizeable paper purchaser, Sanoma is responsible for protecting biodiversity and promoting the responsible use of forest

resources. As paper production can lead to biodiversity loss due to deforestation, Sanoma prefers PEFC or FSC certified

paper in its sourcing to guarantee the certified, transparent and legal origin of the paper used. Risks related to biodiversity and

paper sourcing include the availability of certified paper and the potential financial impacts resulting from the potentially

increasing commodity prices. Sanoma has several measures in place to mitigate the biodiversity risks identified. Sanoma

updates its Procurement strategy on an annual basis and evaluates potential market impacts of the costs and availability of

paper. Potential risks are also followed and mitigated through annual negotiations with suppliers conducted by the

Procurement team. The risk of potentially rising paper prices is mitigated by diversifying paper supply. The risk is closely

followed, in particular, for newsprint paper, as Media Finland is dependent on certain suppliers. To mitigate the dependency on

paper, Sanoma has invested in the transition to digital and cloud.

Sanoma also identifies a transition risk related to the EU’s Deforestation Regulation (EUDR). The EUDR requires verification

of the origin of wood fibre used in paper products. Compliance risks are related to especially the availability of the data

requested, as Sanoma is dependent on its suppliers to access this information. In practice, the EUDR requires Sanoma to

trace the geolocation of all wood used in its wood-based products. The EUDR is part of a broader plan of actions to tackle

deforestation and forest degradation. Once in place, the information will enable Sanoma to trace its products in more detail,

which improves transparency. Under the regulation, Sanoma must be able to prove that its wood-based products, such as

newspapers, magazines and books, do not contribute to forest degradation. As of December 2025, these new rules will be

implemented throughout the EU. To mitigate transition and compliance risks related to the EUDR, Sanoma develops its due

diligence processes, engages with suppliers, and invests in tools to ensure compliance with the requirements.

Sanoma’s analysis of the resilience of its business in relation to biodiversity includes impact, risk and opportunity identification

and assessment as well as defining, implementing and monitoring the risk management activities. To identify and control

environmental risks and opportunities for its business, Sanoma evaluates climate- and biodiversity impacts, risks and

opportunities annually. During 2024, the evaluation was conducted as part of the double materiality assessment. It covered

direct operations as well as the upstream and downstream value chain and assumed that Sanoma’s business areas and

targets remain the same. The evaluation focused on upstream tier 1 suppliers, but when analysing for example the suppliers’

ability to reduce emissions, tier 2 suppliers were also reviewed. The evaluation was performed by the Sustainability and

Procurement teams and included both qualitative and quantitative aspects, containing also information collected from other

internal teams.

In its resilience analysis, Sanoma has applied the same financial thresholds and time horizons as in its ERM process as

described under ESRS 2 BP-2. Further details about the double materiality assessment are found under ESRS 2 SBM-3. The

reporting of potential risks and opportunities follows Sanoma’s sustainability management model described under ESRS 2

GOV-2. Sanoma’s resilience analysis did not include systemic or physical biodiversity risks or ecosystem risks. Going forward,

Sanoma aims to expand its risks assessment.

During 2024, Sanoma cooperated with several stakeholders in regards to biodiversity topics. These included paper and print

suppliers, NGOs, FSC and PEFC certification collaborators as well as local authorities responsible for the implementation of

the EUDR.

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

No own direct impacts from operative operations or material sites from a biodiversity point of view were identified, and

therefore there were no material sites with impacts on threatened species. As a result, there were no significant negative

impacts from own operations to land degradation, desertification or soil sealing. Upstream value chain impacts have been

identified by analysing typical impacts of paper production and sourcing. These impacts have been disclosed under E5

Resource use and circular economy.

Impact, risk and opportunity management

E4-2 Policies related to biodiversity and ecosystems

In general, Sanoma’s environmental commitments and policies are described under E1-2, including the scope of Sanoma’s

policies and standards such as the Sustainability and Human Rights Policy, Supplier Code of Conduct and Environmental

Standard. The description also presents the most senior level in the organisation accountable for the implementation of these

policies and a description of consideration given to interests of key stakeholders’ views. Resource-use is described in more

detail under E5-1. Sanoma’s Environmental Standard addresses the contribution to impact drivers on biodiversity loss, such

as climate change and pollution. Sanoma does not have own sites near biodiversity sensitive areas or relevant own operations

in regards to direct exploitation, land-use change, sea-use change, invasive alien species, freshwater-use, agriculture,

sustainable oceans or seas practices. With the exception of land-use change, Sanoma has not adopted policies to manage

these topics.

Based on Sanoma’s procurement rules embedded into the Supplier Code of Conduct, including commitments to deforestation-

free products, the violations or concerns of non-compliance with Sanoma’s policies and standards are advised to be reported

to Sanoma through grievance channels. Sanoma’s whistleblowing channel is available in several languages relevant for

Sanoma’s operations. Sanoma reserves the right to cancel orders, suspend orders and/or terminate its contract with a supplier

in the event of a material breach of the Supplier Code of Conduct and withhold payment for non-confirmatory products or

services.

Sanoma has identified certain dependencies, which relate to the availability of paper and certified paper, posing a risk to

Sanoma’s operations. Sanoma’s Environmental Standard and Paper Procurement Standard prefer the use of certified paper,

impacting this dependency. At the same time, these policies support in reducing biodiversity-related impacts and risks, such as

weakening customer demand due to non-sustainable products or non-compliance with the EUDR.


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Environmental Standard

The Environmental Standard addresses climate change through science-based emission reduction pathways and minimising

pollution with high environmental management standards, such as ISO 14001. It mitigates land-use change by promoting

sustainable material use and responsible procurement. Additionally, the policy supports biodiversity and protects species

populations by reducing environmental impacts. Following the standard, Sanoma supports ecosystem conditions through the

efficient use of materials and responsible procurement, acknowledging dependencies on ecosystem services and aiming to

mitigate negative impacts.

Through its Environmental Standard, Sanoma commits to protecting biodiversity, promoting the responsible use of forest

resources, and aims to ensure its products are deforestation-free and do not cause forest degradation, aligned with relevant

EU regulation. Based on the Environmental Standard, Sanoma’s aim is to use only paper produced responsibly and

originating from traceable, legal and verified sources. Paper certification schemes, such as the Forest Stewardship Council

(FSC) and the Programme for the Endorsement of Forest Certification (PEFC), provide standards and guidelines for

sustainable forest management. These certifications encourage responsible practices that prioritise biodiversity conservation,

ecosystem preservation, and the rights of indigenous communities. Paper certification involves audits and assessments to

ensure compliance with sustainable management practices. Certification schemes promote traceability and help verify that the

wood used in paper production comes from certified and legal sources, reducing the risk of illegal logging and associated

deforestation.

Paper Procurement Standard

The Paper Procurement Standard is a standard part of Sanoma’s paper supplier agreements and supports Sanoma in

managing biodiversity-related impacts and risks. Sanoma sets requirements towards paper suppliers on the use of certified

paper. In-line with the standard, forest-related risks are evaluated and mitigated as part of annual negotiations with the

suppliers by the Procurement team. In this evaluation, short-, medium- and long-term forest-related risks are evaluated, and

suppliers report on their FSC or PEFC certifications and other sustainability efforts. Information on the origin of the paper is

evaluated as a part of these negotiations. Views of suppliers, customers and employees were taken into consideration when

establishing the Paper Procurement Standard. The Procurement team is responsible for updating, communicating and leading

the implementation of the standard. It is made available to potentially affected stakeholders, such as suppliers, through their

contracts.

E4-3 – Actions and resources in relation to biodiversity and ecosystems

Sanoma’s key actions to mitigate its biodiversity impacts related to the use of paper are continuous and include

implementation of sourcing requirements, data collection and traceability improvements related to paper sourcing and

cooperation with the suppliers. In its newspapers, magazines and books, Sanoma prefers to use paper originating from

certified and sustainably managed forests, i.e., from traceable, verified and legal sources. As part of the annual negotiations

with the suppliers, information on the origin of the paper is evaluated. Sanoma also collects information on the origin of paper

from its suppliers via its purchase order system. Sanoma also checks supplier information via national tools and databases,

research institutes and the FSC and PEFC registries. Sanoma currently traces and monitors the origin of the purchased paper

from its tier 1 and 2 suppliers. All described actions related to paper sourcing increase traceability, and with the EUDR,

traceability is expected to expand beyond tier 1 and 2 suppliers.

Sanoma’s key actions to mitigate risks related to paper use and biodiversity are also continuous. Sanoma updates its

Procurement strategy on an annual basis and evaluates potential market risks related to the costs and availability of paper.

Potential risks are followed and mitigated through the negotiations with suppliers. The risk of potentially rising paper prices is

mitigated by diversifying paper supply. The risk is closely followed, in particular, for newsprint paper, as Media Finland is

dependent on certain suppliers. To mitigate the dependency on paper, Sanoma has invested in the transition to digital.

Sanoma continuously develops its due diligence systems to ensure tracing of the origin of the paper-fibre used in its products

and to manage compliance risks related to EUDR. In 2024, Sanoma acquired a PEFC Chain of Custody certification for Media

Finland. Sanoma’s learning business in the Netherlands, Malmberg, has acquired a FSC Chain of Custody certification.

The scope of actions related to biodiversity covers Sanoma’s own operations and upstream value chain, with the actions

applying to all paper and print suppliers in all sourcing countries. As actions are considered to be continuous, there are no time

horizons to disclose. Sanoma does not use offsets or compensation in relation to its biodiversity impacts. PEFC and FSC

paper use includes ensuring that local and indigenous knowledge is respected and taken into consideration, but no direct

engagement or knowledge integration has taken place. No nature-based solutions are incorporated into Sanoma’s actions.

Metrics and targets

E4-4 Targets related to biodiversity and ecosystems

Sanoma has not set measurable time-bound outcome-oriented biodiversity-related targets, and therefore targets are not

aligned with the Kunming-Montreal Global Biodiversity Framework and EU biodiversity strategy for 2030. Sanoma aims to

further develop its biodiversity targets going forward. Sanoma tracks the effectiveness of its biodiversity-related policy

implementation through monitoring of paper-related GHG emissions, as disclosed under E1-4, and of paper usage and share

of paper certification, as disclosed under E5-3 and E5-4. These can be allocated to the layers of avoidance and minimisation

in the biodiversity mitigation hierarchy. As Sanoma’s impacts occur through the upstream value chain, no ecological thresholds

and allocation of impacts to the undertaking have been applied in the monitoring of the effectiveness of the policy

implementation. Biodiversity offsets were not used in the target setting. External stakeholders were not involved in the target

setting.


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ESRS E5 Resource use and circular economy

Impact, risk and opportunity management

E5-1 Policies related to resource use and circular economy

Sanoma’s environmental commitments and policies in general are described under E1-2, including the scope of the

Environmental Standard. The description includes the scope of these policies and standards, the most senior level in the

organisation accountable for implementation of them and a description of consideration given to interests of key stakeholders’

views and how the policies are made available to stakeholders.

Environmental Standard

Through its Environmental Standard, Sanoma is committed to using natural resources efficiently. The Environmental Standard

addresses the transitioning away from the use of virgin resources, sustainable sourcing by promoting the use of recycled

materials and renewable sources and taking environmental aspects into consideration throughout the life-cycle of the product.

The objectives of the Standard are achieved through responsible procurement practices, efficient operations and product

development. Through the Standard, Sanoma commits to optimising the consumption of materials, such as paper, printing inks

and printing plates, to recycling the materials used and to measuring and minimising waste generated in its printing houses,

facilities and warehouses. According to the Standard, Sanoma aims to minimise the use of plastics in its products. In products,

where plastics are used, Sanoma aims to use recyclable plastics, which do not originate from virgin sources. Sanoma also

commits to pollution prevention and identifying and managing chemicals and other materials posing a hazard if released to the

environment by ensuring their safe handling, movement, storage, recycling or reuse, and disposal. In addition to Sanoma’s

Supplier Code of Conduct, also the Environmental Standard sets requirements for sustainable sourcing, such as the use of

certified paper. The Environmental Standard is implemented locally across Sanoma businesses. The Group Sustainability and

Procurement teams are responsible for supporting the implementation of the Standard. The Group Sustainability team is

responsible for updating and communicating it.

E5-2 Actions and resources related to resource use and circular economy

Resource inflows

Sanoma’s key actions to manage resource use-related impacts relate to the use of paper in Sanoma’s products. The scope of

these actions is Sanoma’s upstream value chain and most of the actions are continuous. Sanoma engages with its paper and

print suppliers to ensure the use of certified paper. These actions are described under E4-3, as paper certification is closely

connected to the management of Sanoma’s biodiversity impacts. In addition to the management of impacts related to the use

of certified materials, Sanoma is committed to using natural resources efficiently and aims to optimise resource use, for

example by minimising paper weights in its products. This is done by systematic monitoring and forecasting of paper

consumption in magazines and books printed by printing suppliers to avoid unnecessary paper consumption. During the

printing process in its own operations at two newspaper printing houses, Sanoma optimises the consumption of materials,

such as paper, printing inks and printing plates, and recycles the materials used. The share of paper waste during the printing

process is monitored closely and it is a short-term incentive for the printing house employees.

Resource outflows

Key actions to manage waste-related impacts in Sanoma’s printing houses, facilities and warehouses include continuous

actions related to minimising of the waste generated through monitoring of waste generation, ensuring with waste treatment

partners that waste is recycled or reused as well as the training of employees on waste treatment topics. In Sanoma’s facilities

and warehouses, waste minimisation is part of the ongoing environmental work and several of the facilities Sanoma leases

have a certification for environmental management systems. In Sanoma’s printing houses, environmental management is

certified with the ISO 14001 management system. Sanoma House, the headquarters in Finland, and the office in Norway are

Breeam-certified. Facilities used in the Netherlands (Iddink) and Italy (Sanoma Italy) also hold ISO 14001 certifications.

Metrics and targets

E5-3 Targets related to resource use and circular economy

Sanoma tracks the effectiveness of the policy implementation and measures taken related to resource use, paper certification

and waste management as described below under Resource inflows and Resource outflows. Sanoma does not have time-

bound or outcome-oriented targets related to resource use.

Resource inflows

To measure especially the effectiveness of its policies and action plans to manage biodiversity impacts, Sanoma monitors and

measures the share of certified paper used in its newspapers, magazines and books. Sanoma’s aim is to use only wood fibre

that is produced responsibly and originating from traceable, legal and verified FSC and PEFC sources. In 2024, the share of

certified paper used in Sanoma’s products was 98%. Sanoma measures the effectiveness of its policies and action plans to

manage both biodiversity impacts as well as resource use impacts by monitoring the amount of materials, such as paper

bought and used. Sanoma is committed to using natural resources efficiently and thus minimises the use of primary raw

materials.

Resource outflows

With efficient waste management, Sanoma aims to minimise waste generated in its printing houses, facilities and warehouses.

E5-4 Resource inflows

Sanoma’s resource inflows cover its printed products, such as newspapers, magazines and books. The key materials are the

materials used in the production of these products, such as paper, printing inks, printing plates, wetting additives and washing

solvents, which Sanoma reports for its own operations, i.e. two printing houses it owns in Finland. For its own operations,

more specifically two owned newspaper printing houses in Finland, Sanoma reports the materials bought and used, such as

paper, printing inks, printing plates, wetting additives and washing solvents. In addition, Sanoma purchases paper, which is

delivered to upstream value chain printing partners, who then produce Sanoma’s books and magazines. In 2024, Sanoma

purchased 43,430 tonnes of paper for its newspapers, magazines and books. Monitoring of the volume of paper helps to

decrease not only the resource use impacts, but also biodiversity and climate-related impacts associated with paper

consumption. Throughout its own operations and the upstream value chain, Sanoma aims to use paper fibre which originates

from trusted, PEFC or FSC certified sources. Sanoma monitors the share of certified paper used in its own operations for

newspapers and bought for magazines and books printed by printing suppliers. During 2024, the share of certified paper was

98%.


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Table 24: E5-4-30 Paper bought and used for products and share of certification


Metric used to evaluate progress	2024
Overall total weight of paper used by Sanoma for own printing houses (newspapers) and for printed products production (magazines and books), tonnes	43,430
Share of certified paper fibre in paper bought %	98%

The reporting follows Sanoma’s financial accounting rules and includes paper bought by Sanoma and used to manufacture its products. Data for paper

bought originates from paper suppliers’ direct measurement and does not include any significant assumptions. Data for certified fibre originates from

paper suppliers. 8% of the certification data is estimated by calculating the weighted average of the primary data. The denominator for the share of

certified paper used is the overall total weight of paper used during the reporting period.

Table 25. E5-4-31 Materials used in own operations


Metric used to evaluate progress	2024
Overall total weight of materials used by Sanoma in own operations
Paper, tonnes	24,644
Printing plates, tonnes	148
Printing inks, tonnes	557
Wetting additive, tonnes	50
Washing solvents, tonnes	28
Percentage of biological materials used that are sustainably sourced by Sanoma in own operations
Share of certified paper used in own operations %	100%
Recycled and reused materials used by Sanoma in own operations
Total weight of recycled and reused materials used, tonnes	0
Share of recycled and reused materials used %	0%

The reporting follows Sanoma’s financial accounting rules. Materials consumption data originates from Sanoma's newspaper printing houses’ production

systems. Certification data originates from paper suppliers as part of invoicing. The denominator for the share of certified paper used is the overall total

weight of paper used in own printing houses during the reporting period. Paper is the only biological material used by Sanoma. No technical materials are

used in Sanoma's own operations. No significant assumptions are used for the metric.

E5-5 Resource outflows

Waste

Sanoma’s printing houses, facilities and warehouses generated 6,579 tonnes of waste in 2024. Recycled and reused waste

accounts for 72% of Sanoma’s waste. Sanoma’s two own printing houses in Finland produce newspapers. Relevant waste

streams and materials presented in waste include paper waste generated from the production of newspapers, metal waste

from printing plates (used in the printing process and reused by partners after use), inks and solvents as residuals from the

printing process as well as general office and warehouse waste. Sanoma monitors closely the amount of waste types in its

printing houses, which are the biggest source of waste. Sanoma’s printing houses use the ISO 14001 for environmental

management, including waste management. In addition to printing houses, Sanoma leases facilities and warehouses, in which

mainly general office and packaging waste is generated. Waste management is part of each facility’s environmental

management system. In Finland, headquarters Sanoma House is Breeam-certified. Facilities in the Netherlands (Iddink) and

Italy (Sanoma Italy) hold ISO 14001 certifications.

Sanoma evaluates waste impacts by reporting waste generated in its facilities, warehouses, and two owned printing houses in

Finland, with no material identified risks or opportunities related to waste. Sanoma uses a combination of direct measurement

and estimation methods (54% of data) to calculate waste data. This includes weighing waste in printing houses, using data

provided by waste management suppliers and estimating waste quantities based on floorspace and the number of employees

using the facility. Waste data estimations include estimating the amount of waste by using Statistics Finland data and

estimations on waste treatment type as based on Eurostat Waste Statistics. No radioactive waste is generated in Sanoma’s

printing houses, facilities or warehouses.


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Table 26. E5-5 37 a–d Waste by type and disposal method


Waste by type and disposal method, tonnes	2024
Total amount of waste generated	6,579
Total amount of waste directed to disposal	1,460
Total amount of waste diverted from disposal	5,119

Non-hazardous waste, Directed to disposal	1,377
by incineration	17
by landfilling	1,084
by other disposal operations	276
Non-hazardous waste, Diverted from disposal	4,901
due to preparation for reuse	220
due to recycling	4,655
due to other recovery operations	84
Total - Non-hazardous waste	6,278

Hazardous waste, Directed to disposal	83
by incineration	9
by landfilling	34
by other disposal operations	39
Hazardous waste, Diverted from disposal	218
due to preparation for reuse	24
due to recycling	110
due to other recovery operations	84
Total - Hazardous waste	301

Non-recycled waste	1,815
Percentage of non-recycled waste %	28%


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Social Information

ESRS S1 Own workforce

Strategy

SBM-3 Material impacts, risks and opportunities and their interaction with the strategy and business model

Sanoma’s actual and potential impacts to its own workforce originate from the Company’s business model and strategy. In its

double materiality assessment, Sanoma identified actual or potential positive impacts on its employees through providing

secure employment, paying adequate wages, providing trainings and skills development and promoting gender equality and

diversity. Sanoma acknowledges that the successful implementation of its strategy and business model depends on having

and retaining skilled and engaged management and employees, and on their competencies in developing appealing products

and services in accordance with customer needs. Through actions that focus on fostering an inclusive and people-centric

culture, Sanoma aims to ensure continuous improvement in employee engagement and satisfaction.

In addition, Sanoma identified actual or potential negative impacts related to work-life balance, working time, health and safety,

social dialogue, freedom of association, collective bargaining, gender equality and equal pay, diversity, anti-harassment and

privacy and security of employee data. Impacts are not considered to be systemic, but rather individual matters. Sanoma

continuously develops the working conditions as well as equal treatment and opportunities of its employees, and ensures

employee data privacy.

These impacts apply to Sanoma’s own operations, and cover all employees and employment arrangements in all operating

countries. The actual and potential impacts related to own workforce are taken into account in Sanoma’s strategic

development. Sanoma utilises the annual Employee Engagement Survey and other surveys to identify trends and issues

impacting its own workforce, and the results serve as the base for action planning. Sanoma gains insight into the perspectives

of potentially vulnerable or marginalised groups within its workforce particularly through the Diversity and Inclusion Survey.

Impact, risk and opportunity management

S1-1 Policies related to own workforce

In this section, Sanoma describes the policies and principles adopted to manage its impacts related to its own workforce. All of

these policies and standards apply to Sanoma’s own operations, and cover all employees and employment arrangements in

all operating countries. Sanoma’s policies are approved by the Board of Directors. Sanoma’s standards are approved by the

President and CEO. The President and CEO and the EMT are ultimately responsible for ensuring that Sanoma’s employees

are aware of and comply with policies.

These policies and standards are made available via internal channels, and the Code of Conduct, the Sustainability and

Human Rights Policy, the People Policy and the Diversity and Inclusion Policy are also available on Sanoma’s website.

Code of Conduct

The Sanoma Code of Conduct outlines the shared ethical standards for employees and business partners and applies to all

impacts presented in this section. The Code acts as an umbrella for all policies and standards within Sanoma. The Sanoma

Code of Conduct encompasses the Ten Principles of the UN Global Compact on human rights, labour, environment and anti-

corruption.

Sustainability and Human Rights Policy

Sanoma’s Sustainability and Human Rights Policy, published in December 2024, outlines its sustainability-related principles

and summarises the core commitments and sustainability due diligence process. The Group Sustainability function is

responsible for updating, communicating and leading the implementation of the Sustainability and Human Rights Policy. The

policy covers all S1 related IROs presented in the table in section ESRS 2 SBM-3, except for training and skills development.

As a signatory of the UN Global Compact (UNGC), Sanoma recognises the importance of the Agenda 2030 and UN

Sustainable Development Goals (SDGs), and adheres to the UN Guiding Principles. In relation to impacts on its own

workforce, Sanoma commits to the Ten Principles related to fundamental responsibilities in human rights, labour, environment

and anti-corruption. The Sustainability and Human Rights Policy is aligned with internationally recognised instruments, such as

the Universal Declaration of Human Rights (UDHR), the International Labour Organization’s (ILO) Declaration on Fundamental

Principles and Rights at Work and the OECD Guidelines for Multinational Enterprises. Human trafficking, forced labour,

compulsory labour and child labour are addressed in these commitments.

Sanoma aims to identify, prevent and mitigate potential and actual negative impacts on people. These include social impacts

connected with Sanoma’s own operations as well as its upstream and downstream value chain through its products, services

or business relationships. The due diligence process is defined in the UN Guiding Principles on Business and Human Rights

and the OECD Guidelines for Multinational Enterprises.

The right to effective remedy is a fundamental element of the international human rights system. Following its human rights

commitments, Sanoma implements a remediation process to address adverse human rights impacts its operations cause or

contribute to. Further details are available under S1-3.

People Policy

Sanoma’s key policy related to impacts on its own workforce is the People Policy, published in December 2024, and covering

all S1-related IROs presented in the table in section ESRS 2 SBM-3. The impacts on employment security, social dialogue and

privacy of own workforce are covered indirectly through the human rights-related commitments of the policy. The policy

encompasses the guidelines that serve as the basis for people management at Sanoma, in alignment with the Code of

Conduct, the Sustainability and Human Rights Policy commitments and corporate values. The Group HR team is responsible

for updating, communicating and leading the implementation of the People Policy.

Sanoma is committed to creating a working environment and culture that inspires employees, values their diversity, embraces

their views and respects their individual rights. Sanoma’s People Policy aims to provide a common understanding of people

guiding principles. However, there may be country-specific rules based on applicable country legislation, collective agreements

and practices. In addition, Sanoma has local Occupational Health & Safety (OH&S) management systems that help identify

and mitigate workplace risks. The policy covers people priorities, human rights, diversity and inclusion, occupational health


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and safety and well-being, rewards and recognition, recruitment and career opportunities, professional development,

performance management, employee engagement as well as disciplinary practices.

Sanoma is committed in investing in the development of people's talent and skills, cultivating a collaborative culture, and

keeping Sanoma values as an integral part of the way-of-working. The People Policy sets the framework for a well-organised

management of occupational health and safety, equal treatment, non-discrimination and mental and physical well-being of its

own employees.

The policy considers, among others, sustainability, legal and HR perspectives. The perspective of employees is considered via

the channels established for engagement with its own workforce and described in S1-2.

Diversity and Inclusion Policy

The Diversity and Inclusion Policy sets the ambition for a diverse and inclusive workplace with fair treatment and equal

opportunities, non-discrimination, equal pay for equal roles, and gender-neutral experience. As of December 2024, the content

of the policy has been embedded into the People Policy. The Group HR team is responsible for leading the implementation of

the Diversity and Inclusion Policy, whereas the responsibility of updating and communicating the policy is shared with the

Group Sustainability team.

Anti-Harassment Standard

In addition to the policies, the IRO related to anti-harassment is managed through the internal Anti-Harassment Standard that

describes the process of handling the potential harassment cases in detail. The Group HR team is responsible for updating,

communicating and leading the implementation of the Anti-Harassment Standard.

Elimination of discrimination and promoting equal opportunities

All policies related to its own workforce are aimed at preventing discrimination, promoting diversity, and fostering an inclusive

workplace.

In its People Policy, Sanoma outlines that the Company has zero tolerance for any form of discrimination, harassment

(including sexual harassment) or bullying in the workplace. Sanoma is committed to ensure equal opportunities for all, valuing

diversity and creating a culture of inclusion. Diversity is found in any social identity, such as gender identity, sex, age, national

extraction, race, ethnicity, colour, physical and mental abilities or disabilities, religion, political opinions, sexual orientation,

social origin and other attributes covered by the EU and national regulations. Sanoma does not tolerate discrimination based

on any attributes. In its Diversity and Inclusion Policy, and People Policy, Sanoma outlines that it aims to recognise people

from groups at particular risk of vulnerability in its own workforce, and take positive action to enhance the inclusion of these

groups. Equal treatment of all individuals and the promotion of equity in working life is an integral part of sustainability at

Sanoma.

In addition to the policies being included in the annual trainings and made available through internal channels, Sanoma

monitors the implementation of its policies through a regular Employee Engagement Survey, and Diversity and Inclusion

Survey. Sanoma has also updated its recruitment process to ensure diversity, equity and inclusion. In internal

communications, employees are reminded of the policies in the relevant context, such as zero tolerance regarding harassment

and reporting channels.

Sanoma has clear procedures for addressing grievances. Employees are encouraged to report incidents through multiple

channels, including a whistleblowing channel, hosted by a third party ensuring a confidential process and protection against

retaliation. All reported incidents are documented, investigated, and overseen by the Audit Committee to ensure accountability. In

addition, Sanoma monitors the incidents and addresses potential trends proactively to maintain a safe and supportive work

culture.

S1-2 Processes for engaging with own workforce and workers’ representatives about impacts

Sanoma is committed to creating an environment where its employees feel valued, motivated and committed to contributing

towards shared goals. Sanoma seeks feedback from its employees regularly to understand their needs and preferences, using

this information to manage the impacts related to its own workforce.

In general, Sanoma’s due diligence process follows the definitions in the UN Guiding Principles on Business and Human

Rights and the OECD Guidelines for Multinational Enterprises and is described in the Sustainability and Human Rights Policy.

From the own workforce point of view, due diligence is embedded into governance, strategy and the business model through

the policies described in S1-1.

To engage with its own workforce, Sanoma has regular and structured communications channels in place, such as internal

communications channels and quarterly updates. In addition, both SBUs have their own established channels for direct

engagement with employees. Engagement types are diverse and vary in frequency, ranging from continuous communications to

annual or quarterly organised events. This structured, multifaceted approach allows Sanoma to maintain a dynamic and

responsive engagement framework. Annual performance and development reviews are also utilised for engagement with

employees.

In Learning, the annual Share Views Week provides employees an opportunity to connect and exchange ideas in interactive

sessions across the SBU. In addition, monthly SL Connects online events are organised for managers. Working groups

focusing on specific topics are formed if needed.

In Media Finland, an annual strategy communications session is organised to all employees with the opportunity to ask

questions and comment. Employees can also ask questions from the CEO of Media Finland in “Three questions” interviews

that are regularly broadcast to the entire personnel. In addition, a monthly communications package is offered to managers to

help them engage with their teams, and weekly newsletters are sent to all employees.

Regular Employee Engagement (EES) and Diversity and Inclusion Surveys are key tools to identify and assess potential and

actual impacts, risks and opportunities as well as to evaluate the effectiveness of engagement related to Sanoma’s own

workforce. The survey results are analysed on unit and company levels. In addition, Sanoma utilises unit or topic-specific

pulse surveys to gain more detailed insights and trends. Sanoma also has targets related to gender balance and progress

against those targets is also monitored annually. The results of these surveys are used to plan actions to address actual and

potential negative impacts. Actions are described in S1-4, and the latest EES survey results can be found in the S1-Entity

specific metric.

The effectiveness of actions are tracked through the above mentioned surveys as well as through regular performance and

development reviews. Sanoma has implemented procedures to ensure that complaints and grievances are handled in a


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neutral way. Employees are encouraged to report their concerns in confidence through Sanoma’s reporting channels such as

directly to their managers, Human Resources, or through the anonymous whistleblowing hotline. Incidents are reported

internally quarterly, and externally annually.

Sanoma respects its employees’ right to join trade unions. Freedom of association and the effective recognition of the right to

collective bargaining are included in the International Labour Organization’s (ILO) Declaration on Fundamental Principles and

Rights at Work, which Sanoma commits to. Both SBUs conduct regular, quarterly meetings with the personnel representatives.

Personnel representatives are informed in advance of any relevant change initiatives and negotiated with, if needed. In

addition, there are established forums to ensure personnel representation: Media Finland's employee advisory board,

European Working Council for the whole of Sanoma and administrative representation in unit management teams.

The most senior role that has operational responsibility of the engagement with Sanoma’s own workforce is the Chief Human

Resources Officer, and the functions with operational responsibility are Human Resources and Communications in both SBUs.

Gaining insights into perspectives of people in its own workforce who may be particularly vulnerable to impacts and/

or marginalised

Sanoma has established practices to gain insights into the perspectives of potentially vulnerable or marginalised groups within

its workforce. In 2024, Sanoma implemented a Group-wide DE&I survey to understand minority group perspectives. In

addition, sexual and gender minorities' experiences were separately asked to highlight the International Day Against

Homophobia, Transphobia and Biphobia (IDAHOT). Sanoma has encouraged personnel to establish minority personnel

representative groups. In Media Finland, non-Finnish speakers have established a group. In Learning, the work around the

five pillars of DE&I, Culture & Heritage, Disability & Neurodiversity, Gender, Generations, and LGBTQ+, continued.

In addition, Sanoma utilises the EES survey to identify trends and issues impacting specific vulnerable or marginalised groups.

Other practices that may provide insights are exit interviews that may reveal unique challenges or barriers faced by employees

and thus help to understand what aspects of the work environment may disproportionately impact marginalised employees

and where further support or improvements are needed.

S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns

Aligned with Sanoma’s Sustainability and Human Rights Policy, the right to effective remedy is a fundamental element of the

international human rights system. Sanoma has a remediation process to address adverse human rights impacts its

operations cause or contribute to. Sanoma’s whistleblowing channel enables employees, customers and business partners to

report suspicions of misconduct related to sustainability or human rights issues confidentially and anonymously. In addition,

Sanoma’s People Policy states alignment with the Group’s guidelines (including ILO commitment on collective bargaining),

and commits to collective bargaining agreements. In addition to having processes and channels in place to remediate negative

impacts, Sanoma has not separately assessed the effectiveness of the provided remedy of a potential case.

Sanoma’s whistleblowing channel is available in several languages relevant for Sanoma’s operations. The channel is

established by third-party mechanisms, and it is available on Sanoma’s internal channels and website. In addition, internal

communication campaigns about raising concerns are rolled out annually.

Sanoma has implemented procedures to ensure that complaints and grievances are dealt with in a neutral way. Employees

are encouraged to report their concerns in confidence through Sanoma’s reporting channels such as directly to their

managers, Human Resources, or through the anonymous whistleblowing channel.

Cases reported through the channel are processed in a manner that ensures impartiality. According to its Code of Conduct,

Sanoma does not tolerate retaliation against individuals who make reports in good faith, or against any third persons,

facilitators or legal entities connected to the reporting individual. Sanoma investigates reported cases, reviews incidents,

leverages learnings to influence both internal and external processes and reports the number and types of these cases

annually. Internal Audit investigates misconduct cases separately from the chain of management involved, and it informs the

Audit Committee about all identified and investigated misconduct cases.

To increase awareness, raising concerns is part of the annual mandatory Code of Conduct e-learnings. Completion rates of

these courses are reported in G1-1. Additionally, Sanoma runs an annual awareness campaign on speaking up, and tracks the

number of reports submitted and investigated through different channels. Trust on the available channels is difficult to

measure, since an increase in the number of reports may indicate growing trust, though it could also reflect an increase in

identified issues.

S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and

pursuing material opportunities related to own workforce, and effectiveness of those actions

As described in section S1-2, the actions needed to manage material impacts on Sanoma’s own workforce are identified

during engagement with personnel. Analysis of the annual EES, DE&I and other surveys act as valuable input for planning the

actions to a particular actual or potential negative impact. If needed, there are dedicated focus groups established to define

the actions needed. Topic and unit specific surveys often take place several times a year. The scope of the actions is

Sanoma’s own workforce in its own operations. Most of the development is continuous or reactive. All of these actions also

support the objectives of the People Policy.

Actions to prevent, mitigate and remediate negative impacts

Work-life balance and working time

Sanoma has several continuous actions to mitigate the negative impacts on work-life balance and working time. To help

employees manage their personal and professional responsibilities, Sanoma provides, where possible, flexible working

arrangements, including flexible hours, hybrid work and leave policies. The annual EES survey that is targeted to all Sanoma

employees and was carried out also in 2024, is used in both SBUs to track employee experience on work load and to plan

actions targeted to improve the work-life balance. In addition, the regular 1:1 discussions that managers have with employees

are used to plan actions to balance employees' workload. Work-life balance is also improved through monitoring working time.

In 2024, Media Finland also implemented one working time system to all its employees so that managers can monitor the

working hours of their subordinates. The system provides notifications to managers if working hours exceed the agreed limits.

Health and safety

In order to ensure a safe workplace and to promote health and well-being, both SBUs provide several mental and physical

health initiatives to all employees on a continuous basis. In Media Finland, communication about low-threshold mental health

care is targeted to employees, and managers are continuously trained on the available health and safety services. In addition,


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trainings on self-leadership, change skills and resilience elements are included in managers’ trainings and offered also to

employees.

Gender equality, equal pay and diversity

In 2024, Sanoma implemented a Group-wide DE&I survey to improve, for example, its understanding of minority groups

perspectives. In addition, sexual and gender minorities' experiences were separately asked to highlight the IDAHOT day in

May. Sanoma has also encouraged personnel to establish minority personnel representative groups. In Media Finland, the

non-Finnish speakers have already established a group. In Learning, the work built around five pillars of DE&I, Culture &

Heritage, Disability & Neurodiversity, Gender, Generations and LGBTQ+, continued. These pillars represent the DE&I focus

areas for Learning. Senior leaders are sponsors of these pillars. Through these actions Sanoma improves the understanding

of the obstacles and challenges faced by people identifying themselves as any minority.

Sanoma actively recruits from diverse employees to foster an inclusive and varied workforce. Media Finland updated its

recruitment process from the DE&I perspective in 2024, and managers were trained accordingly. In addition, to ensure equal

pay, Media Finland's remuneration guidelines were updated in accordance with the job architecture work conducted for the

implementation of the new Human Resources tool that will be taken into use in 2025. The same tool is already in use in

Learning.

In addition, gender equality and diversity were part of the annual Code of Conduct e-learning in 2024. The training is

mandatory for all Sanoma employees and more information about the training can be found in G1-1. Sanoma runs an annual

awareness campaign to all employees on speaking up and tracks the number of cases submitted and investigated through

different channels.

Anti-harassment

On the Group level, Sanoma has implemented procedures to ensure that complaints and grievances are dealt with in a neutral

way. The Anti-Harassment Standard describes the process of handling the potential harassment cases. Employees are

encouraged to report their concerns in confidence through one of Sanoma’s reporting channels such as directly to their

managers, Human Resources, or through the anonymous whistleblowing channel. For harassment cases, HR is responsible

for the investigation, and each case is investigated as promptly as possible, in a fair and objective manner. In 2024, in those

operating countries where local legislation requires processes to be in place (Spain, Netherlands and Poland), Sanoma took

action to establish separate subsidiary-specific channels that will be included in the Group’s whistleblowing tool in early 2025.

Privacy and security of employee data

Sanoma has continuous Group-level processes in place to manage the potential negative impact on privacy and security of

employee data. Data privacy and security practices were part of the annual Code of Conduct training also in 2024. In addition,

Sanoma has Privacy and Security Champions in HR teams, who follow up and support initiatives regarding the use of

employee data. There is also a process in place to review and fix all reported data breaches. All reports related to

inappropriate behaviour are reviewed and actions agreed on, based on the process in place. Regarding the privacy and

security of employee data, there is a process in place to review data breach reports and agree on the required actions.

No specific actions targeted to adequate wages, social dialogue, freedom of association and collective bargaining were

conducted in 2024. The commitments to these impacts are stated in the policies and no further need for action was identified

in 2024.

Sanoma did not take actions to provide or enable remedy in relation to actual material impacts as there were no actual cases.

Additional actions or initiatives with the primary purpose of delivering positive impacts for its workforce

Sanoma has in place and plans actions and initiatives with the primary purpose of delivering positive impacts for its workforce.

Below are the key actions carried out in 2024.

Health and safety

To support the health and well-being of all employees, both SBUs promote topics related to physical and mental health in their

internal channels on a continuous basis. Sanoma focuses on improving recreation and sense of community throughout the

organisation on a continuous basis. In Media Finland, employees are brought together through Sanomain Kerho (Sanoma

Club) with both sports and culture-related activities. In addition, Sanoma arranges activities, like walking challenges or charity

work, to improve engagement and increase meaningfulness.

Gender equality and diversity

Sanoma carried out actions to promote gender equality and diversity in both SBUs to create a culture of inclusion, involving,

accepting, and valuing all people in the workplace regardless of their differences and social identity.

In Learning, a SBU-wide campaign to foster LGBTQIA+ inclusion was launched during the Pride month, including several

sessions to highlight the commitment to maintaining an inclusive workplace where all individuals feel empowered to share their

unique perspectives and ideas. In addition, a Menopause Awareness training, aimed both for those going through this

important change in life as well as the ones not transitioning through menopause, was launched in 2024.

In Media Finland, DE&I awareness was increased throughout the organisation through internal communications by, for

example, interviewing minority group members in internal news stories, and asking and sharing their experiences in topic-

specific surveys.

Training and skills development

Learning and development is part of Sanoma’s culture and continuous actions to ensure that Sanoma’s employees can

develop professionally and gain the skills that are critical for the future growth and execution of Sanoma’s strategy. Learning

happens mostly on-the-job, but is complemented with formal training and learning from/with others. Annual performance and

development discussions are utilised in both SBUs to create individual development plans and to encourage continuous

learning at work. In both SBUs, leadership competency framework is defined based on the Sanoma business strategy and

values. This framework serves as the basis for different development programmes aiming to help with critical capabilities

enhancement.

In Learning, the HR system Workday provides an online training platform that covers topics such as DE&I, leadership, well-

being and self-development. In addition, in 2024, a Leadership for growth - leadership essentials training targeted for middle

managers was launched in Belgium and the Netherlands. In Media Finland, trainings are provided through Sanoma Academy


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and they cover topics such as leadership skills, coaching, self-leadership, journalistic skills and mentoring. In addition, there

are unit or competence based trainings to more targeted groups. In 2024, all managers in Media Finland were trained on

change management as well as skills and career development as part of a larger trainings plan that continues in 2025.

No specific actions targeted to employment security were conducted as no specific need for them was identified in 2024.

Tracking and assessing the effectiveness of actions related to own workforce

In addition to monitoring the completion level of the actions, Sanoma utilises the annual EES results to track and assess the

effectiveness of actions. The EES includes questions related to, for example, engagement, enablement, inclusion, equality,

work-life balance and trainings, and the previous year's survey is set as the baseline to be improved.

The HR team is responsible for monitoring actions related to its own workforce. The insight and trends from surveys are

followed up by HR as well as SBU and unit management. The Group Compliance team together with HR arranges mandatory

trainings to all. The HR team is responsible for the documentation of guidelines and practices and training them to managers.

Sanoma aims to ensure that no material negative impacts arise from practices through the implementation of the Code of

Conduct, and related annual mandatory trainings to all employees. In addition, guidelines and practices are documented and

trained to managers, and insight and trends from pulse surveys regularly followed up.

Metrics and targets

S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing

material risks and opportunities

Sanoma has not set any measurable time-bound outcome-oriented targets related to its own workforce, and does not have

plans to implement such targets. Given the nature of Sanoma’s business, material issues do not change annually, and

therefore the Sustainability Strategy and targets are set for the long term. Sanoma assesses the effectiveness of its own

workforce-related policies and actions through targets related to the Employee Engagement Survey and by monitoring the

gender distributions at managerial levels. These targets originate from the Sustainability Strategy.

Stakeholders were involved when the targets were set in 2021, when launching the Sustainability Strategy, by participating in

surveys and workshops. The progress of the targets is tracked annually, and the scope is the entire Group. Sanoma’s targets

related to its own workforce are the following:

■ Annually, Sanoma’s Employee Experience Index is on a favourable level ≥7.5

■ People feel that Sanoma provides equal opportunities, and the Equal opportunities rating is on a favourable level, ≥7.6

■ Sanoma continuously seeks to develop the Company as a great place to work, and by 2025, aims to reach an Employee

Net Promoter Score (eNPS) >10

■ Sanoma promotes diversity and gender neutrality throughout the business and aims for a 50/50 gender balance in

managerial positions by 2030

■ The objective is that both genders are represented at the Board of Directors with the share of under-represented gender

being at least 40%

The EES survey results are analysed and action plans created in teams as well as on unit, SBU and Group levels. Plans serve

as input to unit and SBU-specific people plans as well as to a statutory development plan for the work community that is being

created together with personnel representatives.

Team-specific plans are followed up in the teams. Sustainability targets and performance are communicated internally and

externally. The performance against set targets in 2024 for the gender distribution in managerial positions can be found in

section S1-9 and the results of the EES survey in S1 Entity-specific metric: Employee engagement survey.

In 2024, the Employee Experience Index (EEI) was 7.4, (scale 1-10) Equal opportunities rating 8.0 (scale 1-10) and the eNPS

-5 (scale -100 - +100). Sanoma continues to score relatively well on the EEI index and also receive a strong score on Equal

opportunities. This demonstrates that Sanoma’s workforce perceives fairness in topics concerning career development,

opportunities and inclusivity. This reflects the company’s commitment to DE&I initiatives and a culture that supports all

employees, regardless of background.

Sanoma’s eNPS score presents an opportunity for growth. Within Learning, there were variations across countries, particularly

in those experiencing significant changes. Sanoma has developed a HR Strategy has a strong focus on fostering an inclusive

and people-centric culture, ensuring continuous improvement in employee engagement and satisfaction, which is expected to

lead also to an increased eNPS score.

Sanoma progressed well in achieving its gender diversity targets for managerial positions in 2024. Women now represent 48%

of Directors and Senior managers and 50% of Managers with subordinates demonstrating the impact of Sanoma’s ongoing

commitment to diversity and inclusion.

This success reflects Sanoma’s dedicated focus on gender balance, and the company remains committed to strengthening its

talent strategies to drive further progress.

S1-6 Characteristics of the undertaking’s employees

The number of employees are reported as headcount at the end of the reporting period. All employees are included in the total

number of employees. Due to the nature of the business, Sanoma’s number of employees does not fluctuate significantly

during the year. In its Financial Statements, Sanoma reports the number of employees at the end of the period utilising the full-

time equivalent metric instead of headcount. In 2024, the number of employees (FTE) at the end of 2024 was 4,648.


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Table 27. S1-6 AR 55 I Gender distribution of employees


Gender	Number of employees (head count)
Male	2,292
Female	2,965
Other	2
Not reported	8
Total employees	5,267

Table 28. S1-6 AR 55 II Number of employees in countries representing at least 10% of employees


Country	Number of employees (head count)
Finland	2,854
Spain	586
Poland	644
Netherlands	640

Table 29. S1-6 AR 55 III Employees by contract type broken down by gender


	Female	Male	Other	Not disclosed	Total
Number of employees (headcount)	2,965	2,292	2	8	5,267
Number of permanent employees (headcount)	2,642	2,124	2	4	4,772
Number of temporary employees (headcount)	323	168	0	4	495
Number of non-guaranteed hours employees (headcount)	285	134	0	1	420
Number of full-time employees (headcount)	2,257	1,970	0	7	4,234
Number of part-time employees (headcount)	423	188	2	0	613

Table 30. S1-6 AR 55 IV Employees by contract type broken down by country


	Finland	Netherlands	Belgium	Poland	Sweden	Spain	Norway	Germany	Denmark	United Kingdom	Italy	Total
Number of employees (headcount)	2,854	640	185	644	96	586	67	12	6	9	168	5,267
Number of permanent employees (headcount)	2,474	568	176	623	92	583	63	10	6	9	168	4,772
Number of temporary employees (headcount)	380	72	9	21	4	3	4	2	0	0	0	495
Number of non-guaranteed hours employees (headcount)	420	0	0	0	0	0	0	0	0	0	0	420
Number of full-time employees (headcount)	2,210	356	139	633	93	561	64	11	5	9	153	4,234
Number of part-time employees (headcount)	224	284	46	11	3	25	3	1	1	0	15	613


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Table 31. S1-6-50 c Employee turnover


Employee turnover	2024
Number of employees who have left	852
Turnover %	16%

The number of employees who left the Company is reported for January–December 2024. The number of employees who left

the Company includes the impact of certain restructuring actions, including Program Solar, across the Group, as well as small

divestments. The turnover has been calculated by dividing the number of employees who left the Company voluntarily or due

to dismissal, retirement or death in service by the total number of employees at the end of the period.

S1-8 Collective bargaining coverage and social dialogue

Number of employees are reported as headcount at the end of the reporting period.

Table 32. S1-8 AR 70 Collective bargaining coverage


	Collective Bargaining Coverage		Social dialogue
Coverage rate	Employees – EEA (for countries with >50 empl. representing >10% total empl.)	Employees – Non-EEA (estimate for regions with >50 empl. representing >10% total empl.)	Workplace representation (EEA only) (for countries with >50 empl. representing >10% total empl.)
0–19%	Poland		Finland, Spain, Netherlands, Poland
20–39%
40–59%
60–79%	Finland, Netherlands
80–100%	Spain

Sanoma has more than one collective bargaining agreement in place in the EEA. The information regarding collective

bargaining agreements is available from Sanoma’s HR systems. Sanoma has an agreement with its employees for

representation by the European Works Council (EWC).

Table 33. S1-8 Collective bargaining coverage


	%
Percentage of total employees covered by collective bargaining agreements	69%

The working conditions and terms of employment for employees not covered by collective bargaining agreements are on par

or partly determined based on collective bargaining agreements that cover other employees.

S1-9 Diversity metrics

Number of employees are reported as headcount at the end of the reporting period.

Table 34. S1-9-66 a Gender distribution of top management


	Female		Male		Others		Not Disclosed
	Headcount	%	Headcount	%	Headcount	%	Headcount	%
Executive Management Team	1	33%	2	67%	0	0%	0	0%
Management teams	10	53%	9	47%	0	0%	0	0%
Top management, total	11	50%	11	50%	0	0%	0	0%

The Executive Management Team includes the members of Sanoma Group's EMT. Management teams include the SBUs'

management teams, excluding the EMT members.

Table 35. S1-9-66 b Age distribution


Age distribution of employees	Headcount	%
Under 30 years old	488	9%
Between 30 and 50 years old	3,170	60%
Over 50 years old	1,609	31%

Age distribution is compiled by utilising the employees' birth year as the base for the calculations.

Table 36. S1-9 Entity-specific disclosure: Gender distribution of management


	Female		Male		Others		Not Disclosed
	Headcount	%	Headcount	%	Headcount	%	Headcount	%
Directors and Senior managers	73	48%	79	52%	0	0%	0	0%
Managers with subordinates	314	50%	309	50%	0	0%	0	0%

The Directors and Senior managers include subordinates to the EMT and management team members. Managers with

subordinates include all managers that are not part of the Directors and Senior managers or top management definitions.

S1-10 Adequate wages

All Sanoma employees are paid an adequate wage applicable to benchmarks.

S1-11 Social protection

All Sanoma employees are covered by social protection.


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S1-14 Health and safety metrics

Table 37. S1-14-88 a Coverage of health and safety management system

All Sanoma employees are covered by local health and safety management systems.


	%
Percentage of workforce covered by health and safety management system	100%

Table 38. S1-14-88 b Work-related fatalities


	Own workforce	Other workers working on the undertaking’s sites
Number of fatalities as result of work-related injuries	0	0
Number of fatalities as result of work-related ill health	0	0
Total	0	0

Table 39. S1-14-88 c Work-related accidents


Number of recordable work-related accidents	27
Rate of recordable work-related accidents	3.1

The number of work-related fatalities and accidents has been collected from all operating countries.

The rate of recordable work-related accidents has been calculated by using the following formula: (total number of accidents /

total working hours) x 1,000,000. In countries, where the actual working hours have not been available from a system, they

have been estimated using the following formula: (number of weekly working hours defined in agreements or legislation x

number of working weeks excl. annual leave defined in agreements or legislation) x FTE. The share of estimates represented

34% of the working hours.

S1-15 Work-life balance metrics

All Sanoma employees are entitled to take family-related leave. The percentage of employees who took family-related leave

was partially collected manually, as the same classification of absences is not used in all operating countries.

Table 40. S1-15-93 b Family-related leaves


	Female	Male	Other	Not Reported	Total
Percentage of Sanoma's employees entitled to family-related leave					100%
% of employees entitled to family-related leave, who took leave during reporting year	9%	6%	0%	13%	8%

S1-16 Remuneration metrics (pay gap and total remuneration)

The remuneration metrics are calculated from actual data and includes all employees unless otherwise stated.

The gender pay gap is defined as the difference of average pay gross hourly pay between female and male employees.

Estimates are used for working hours using the following formula: (number of weekly working hours defined in agreements or

legislation x number working weeks) x FTE.

The annual total remuneration is defined as the ratio of the highest paid individual to the median annual total remuneration for

all employees (excluding the highest-paid individual). Due to the data collection process development, calculations do not

include salaries for non-guaranteed hours employees in Learning. Sanoma’s plan is to improve the scope of reporting and to

include these in the calculations going forward.

Table 41. S1-16 Gender pay gap and remuneration ratio


Compensation indicators	2024
Gender pay gap	17%
Annual total remuneration ratio	25

S1-17 Incidents, complaints and severe human rights impacts

Table 42. S1-17-103 a Incidents of discrimination


	2024
Number of incidents of discrimination, including harassment	7
Number of complaints filed through channels for people in own workforce to raise concerns	15
Number of complaints filed to National Contact Points for OECD Multinational Enterprises	0
Amount of fines, penalties, and compensation for damages as result of incidents of discrimination, including harassment and complaints filed, EUR	0

The number of incidents are reported through Sanoma’s internal channels and the whistleblowing channel that allows

anonymous reporting. The number of incidents is collected by the Internal Audit. None of the investigated incidents of

discrimination, including harassment, were found true during the investigation. For some cases, no investigation was initiated

due to insufficient information and a lack of whistleblower's response to additional information request.

No severe human rights issues or incidents connected to Sanoma’s own workforce occurred during the reporting period.


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S1 Entity-specific metric: Employee engagement survey

Table 43. Employee Engagement Survey results


	Score 2024
Employee Experience Index	7.4
Equal opportunities in my company rating	8.0
Employee Net Promoter Score	-5.0

The scope of the Employee Engagement Survey includes all employees that are present during the time of the survey.

The EEI is a 10-item index that measures how employees feel about the work environment, how engaged they are, how

committed they are to the organisation, and how likely they are to promote Sanoma’s organisation externally.

The equal opportunities rating in the EES measures whether employees feel that they have equal opportunities in the

company regardless of job, age, ethnicity, gender, disability, beliefs or socio-economic background.

The Employee Net Promoter Score (eNPS) signals how likely employees would recommend Sanoma as an employer. The

Employee Engagement Survey is conducted and results validated by Culture Amp.

The questions were answered on a 5-point scale, ranging from “strongly agree” to “strongly disagree”. To align the scale with

Sanoma’s target levels, the responses were then extrapolated manually. For the EEI that comprises of ten questions, the

results were calculated as average by employee and by organisation.


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ESRS S2 Workers in the value chain

Strategy

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

Sanoma’s suppliers range from small local content providers to large, global corporations. Actual and potential impacts related

to suppliers' workforce originate from Sanoma’s business model and strategy, with suppliers and their workers in the value

chain supporting Sanoma in producing and delivering its printed and digital products and services in both the learning and

media businesses. The impacts have not led to adaptations in the business model or strategy. Sanoma continuously identifies

and assesses potential and actual adverse impacts related to human rights and defines preventive and mitigating actions

accordingly.

Sanoma's disclosure under ESRS 2 covers value chain workers who are likely to be materially impacted by Sanoma. The

types of value chain workers who could be impacted include especially workers working for entities in Sanoma’s upstream

value chain. Sanoma identifies some inherent risk of actual impacts occurring especially with its global supplier network,

particularly in paper and print product manufacturing, various types of hiring of personnel for content creation, event and TV

productions as well as suppliers for business technology services. Generally, the risk of actual human rights impacts occurring

is also related to countries, where the legislation or ratification of international human rights agreements and their

implementation and monitoring are insufficient. Workers in downstream value chain and own operations are own employees,

both of which reported under the S1 standard where relevant. In addition, Sanoma’s joint ventures with majority ownership

(over 50%) are included in the scope of disclosure under S1, while joint ventures with minority ownership are not included in

the scope of this report.

Sanoma’s actual and potential indirect negative impacts on workers in the value chain include impacts related to working

conditions as well as equal treatment of workers. Some actual negative impacts related to exceeding working time labour

standards among Sanoma’s printing suppliers have been identified. Potential impacts include compromised occupational

health and safety as well as the potential for violations of freedom of association, ability to excise collective bargaining,

employment security (protection of workers against fluctuations), adequate wages and social dialogue. Also, Sanoma identifies

potential impacts on training and skills development opportunities and equal treatment, more specifically gender equality of the

suppliers’ employees. Sanoma does not identify impacts to be of a systemic or widespread nature, and monitors the

implementation of corrective actions taken and required from suppliers.

No material risks or opportunities related to workers in the value chain were identified in the double materiality assessment,

described under ESRS 2. Sanoma has not identified any geographies, at country or other levels, or commodities for which

there is a significant risk of child, forced or compulsory labour among workers in the value chain. Based on Sanoma's Human

Rights Impact Assessment, conducted in 2023, Sanoma has not identified particularly vulnerable groups of workers in the

value chain, who would have a higher risk for negative impacts due to their inherent characteristics. No significant changes to

Sanoma's procurement or business model have taken place after the assessment.

Impact, risk and opportunity management

S2-1 Policies related to value chain workers

In this section, Sanoma describes the policies and principles adopted to manage its impacts on value chain workers. The

principles set in the policies govern Sanoma Corporation and its subsidiaries and apply to all companies, in which Sanoma

has financial control. Sanoma’s policies are approved by the Board of Directors. Sanoma’s standards are approved by the

President and CEO. The President and CEO and the EMT are ultimately responsible for ensuring that Sanoma employees are

aware of and comply with the policies. Sanoma’s Group Sustainability team is responsible for updating, communicating and

leading the implementation of the Sustainability and Human Rights Policy. Sanoma’s Group Procurement function is

responsible for updating, communicating and leading the implementation of the Supplier Code of Conduct (SCoC).

Stakeholders' views were taken into consideration in the SCoC standard setting by analysing views of the suppliers' workforce.

Sanoma’s policies and standards are made available via internal channels, and public policies and standards are available on

Sanoma’s website.

Sustainability and Human Rights Policy

The Sustainability and Human Rights Policy, published in December 2024, outlines Sanoma’s sustainability-related principles

and summarises its core commitments in its own operations. The Sustainability and Human Rights Policy does not directly

cover Sanoma’s actual and potential impacts on workers in the value chain, but it defines Sanoma’s sustainability due

diligence process in general, including identification, assessment, management and remediation of sustainability-related

impacts. The policy also outlines Sanoma’s sustainability management model as well as the responsibilities to identify impact,

risks and opportunities though the double materiality assessment process. In relation to impacts on the workers in the value

chain, the Sustainability and Human Rights Policy is aligned with internationally recognised instruments, such as the Universal

Declaration of Human Rights (UDHR), the International Labour Organization’s (ILO) Declaration on Fundamental Principles

and Rights at Work (ILO declaration) and the OECD Guidelines for Multinational Enterprises. As a signatory of the UN Global

Compact (UNGC), Sanoma commits to the Ten Principles of the UN Global Compact (the Ten Principles), the UN Guiding

Principles on Business and Human Rights (UNGPS) as well as Agenda 2030, including the UN Sustainable Development

Goals (SDGs).

Supplier Code of Conduct (SCoC)

Sanoma’s key standard related to material actual and potential impacts o workers in the value chain is the SCoC, last updated

in November 2024. The SCoC sets out the ethical standards and responsible business principles, which Sanoma’s upstream

suppliers are required to comply with. Suppliers shall apply these standards and principles to their employees, which means

this policy is aimed at covering all upstream value chain workers. The SCoC is aligned with internationally recognised

instruments relevant to value chain workers. Through the SCoC, Sanoma’s suppliers and service providers are expected to

commit to and respect the Ten Principles, the UDHR, the International Bill of Rights, the UNGPS, the ILO declaration and

supporting ILO standards. Provisions are aligned with the ILO standards.

The SCoC includes provisions addressing working time, work-life balance, occupational health and safety, freedom of

association, collective bargaining, employment security, adequate wages and social dialogue. The impacts related to the

precarious work of workers in the value chain are covered indirectly through the ILO commitments of the standard. The SCoC


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also requires the suppliers to eliminate any harassment or discrimination related to gender, to ensure equal pay and to offer

training and skills development opportunities to their workers. In addition, it requires suppliers to respect the ILO standards in

relation to human trafficking and forced, compulsory and child labour. In the 2024 update, the SCoC requirements were

extended throughout the supply chain, beyond tier 1 suppliers. In addition, requirements related to training and skills

development opportunities, whistleblowing channel availability and working time were clarified.

Based on the SCoC, the suppliers are required to implement a systematic process to identify, monitor and control health and

safety, labour and other impacts associated with their operations. The suppliers are required to offer mechanisms to raise

complaints or concerns, monitor complaints, protect individuals from retaliation, engage with relevant stakeholders and

implement remediation processes to address any adverse human rights impacts, maintain on site all documentation that may

be needed to demonstrate compliance, implement improvements to achieve compliance in the event of any infringement and

submit to Sanoma a report specifying the actions taken and progress made in achieving compliance. Sanoma or a third party

is also permitted to audit the suppliers' compliance with the SCoC.

By the end of 2024, Sanoma had not become aware of any severe cases of human rights incidents related to the UN Guiding

Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work or OECD

Guidelines for Multinational Enterprises that involve value chain workers. Sanoma monitors cases through internal audits,

grievance mechanisms and third-party supplier audits, which include aspects such as labour rights and occupational health

and safety. Following its human rights commitments, Sanoma is committed to remediation if its activities have caused or

contributed to adverse human rights impacts and requires its suppliers to implement remediation as well. If remediation needs

occur, engagement with relevant stakeholders and details of the case determine the appropriate remediation measures.

Sanoma has identified actual negative impacts concerning labour standards related to working time, fair remuneration and

health and safety. During 2024, Sanoma has engaged with its suppliers requesting to deliver plans for preventive and

corrective actions to enable effective remedy. Progress of these action plans to ensure preventive and corrective measures is

ongoing. For example, suppliers have recruited more employees to reduce the overtime of their workers. Further details are

available under S2-4.

S2-2 Processes for engaging with value chain workers about impacts

Sanoma seeks to identify and prevent human rights impacts in its supply chain through the Know Your Counterparty (KYC)

process and by collecting certifications and audit reports from external information sources as described under S2-4. In

addition, Sanoma uses information from credible proxies to assess and identify potential impacts related to its procurement

categories. Sanoma does not directly engage with value chain workers or their legitimate representatives outside visits to the

suppliers' premises and collection of third-party audit reports.

S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns

Sanoma continuously identifies and assesses potential and actual adverse human rights impacts and defines preventive and

mitigation actions. Sanoma is committed to remediation if its activities have caused or contributed to adverse human rights

impacts. The approach to remediation is case-specific, taking into account the context and details of the impact. The

evaluation of effectiveness is therefore also per case, implementing corrective actions with the aim to prevent similar cases

from arising in the future.

Sanoma’s third-party hosted anonymous whistleblowing channel enables employees, customers, business partners and

suppliers' workforce to report suspicions of misconduct related to sustainability or human rights issues, confidentially and

anonymously. Sanoma does not tolerate retaliation against anyone who raises a concern or participates in an investigation.

Sanoma investigates reported cases, reviews incidents, leverages learnings to influence both internal and external processes

and reports the number and types of these cases annually. Material issues are reported to the Audit Committee , EMT as well

as the Sustainability and Ethics Working Group. The effectiveness of the grievance channel is assessed by monitoring the

number of cases reported as well as tracking the cases investigated and solved annually. Sanoma is subject to the

requirements of the EU Whistleblowing Directive as well as national whistleblowing legislation in its operating countries.

Sanoma’s whistleblowing channel is available in several languages relevant for Sanoma’s operations and value chain.

Sanoma's Code of Conduct and SCoC include the protection against retaliation of individuals using grievance channels.

All new suppliers go through Sanoma’s source-to-contract solution, which aims to incorporate the Supplier Code as a

mandatory step for successful selection. Following the SCoC, Sanoma’s suppliers are required to ensure that a grievance

mechanism is available for workers to raise complaints. In case deficiencies are identified, Sanoma requires the suppliers to

rectify impacts without undue delay and report back to Sanoma on a regular basis on the actions taken. In case the

deficiencies are not rectified within a reasonable time period or the deficiencies are determined to be material or irreparable, or

another material breach of the SCoC is detected, the contract or order can be terminated.

The effectiveness of corrective actions and remedy is currently evaluated case-by-case by analysing whether corrective

actions rectify the impact. Sanoma lacks a systematic monitoring process to assess the effectiveness of the grievance

channels and is unable to evaluate whether value chain workers are aware of and trust the structures or processes to raise

concerns.

S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks

and pursuing material opportunities related to value chain workers, and effectiveness of those actions

To prevent, mitigate and remediate actual and potential negative material impacts on value chain workers, Sanoma takes

action to avoid causing or contributing to material negative impacts on value chain workers through its purchasing practices.

Sanoma’s Procurement team is responsible for the management of material impacts, including setting supplier requirements,

identifying and monitoring impacts as well as tracking preventive and corrective measures. Sanoma’s Procurement function

identifies in its annual planning what actions are needed and appropriate in response to a particular actual or potential

negative impact. As most of Sanoma’s impacts on workers in the value chain are potential, Sanoma’s approach to taking

action in relation to all material negative impacts on upstream value chain workers includes a focus on mitigating the risk of

impacts actually occurring. No severe human rights issues or incidents connected to Sanoma’s upstream value chain occurred

during the reporting period.

The following actions are linked to all Sanoma’s actual and potential impacts on workers in the value chain. Firstly, Sanoma’s

Know Your Counterparty (KYC) process identifies possible risks of impacts and non-compliance of doing business with third

parties. This is a continuous action. The KYC tool is used to screen Sanoma’s suppliers and it identifies possible third-party

non-compliance, including human rights, anti-bribery, corruption, sanctions regulations and due diligence checks. Based on

the screening, Sanoma may restrict or discontinue business activity involving, directly or indirectly, countries or persons


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subject to selective or targeted sanctions programmes and other higher risk matters of concern. In cases of medium or high

risk, the tool refers the employees to consult the Procurement and Legal teams.

Secondly, Sanoma updated its Supplier Code of Conduct during 2024, clarifying, for example, its requirements related to

working hours and remediation. The supplier selection for new suppliers follows Sanoma’s strategic sourcing process, which

incorporates the Supplier Code of Conduct as a mandatory requirement. Sanoma aims that all new suppliers agree on the

Supplier Code of Conduct. To evaluate the effectiveness of this measure, Sanoma follows the number of new key suppliers

that have agreed on the SCoC. As Sanoma aims to prevent impacts from actually occurring through its procurement practices,

no topic-specific actions were targeted to manage potential working conditions impacts (occupational health and safety,

freedom of association, collective bargaining, employment security, adequate wages, social dialogue) or equal treatment

(training and skills development and gender equality) in 2024.

Thirdly, Sanoma engages with especially its paper and print suppliers, as this procurement category has been identified as a

higher risk procurement category due to its nature of producing actual products. Sanoma annually performs a supplier

assessment on all of its print suppliers, collecting SEDEX, BSCI or SMETA third-party audit reports from its suppliers in

addition to environmental details. In relation to capacity-building and engagement with entities in the value chain, Sanoma

organised a Supplier Day for its paper and print suppliers in 2024. The day focused on supplier requirements and current and

future regulation, such as the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence

Directive (CSDDD) and the Regulation on Deforestation-free Products (EUDR). All of these regulations impose requirements

towards suppliers that are related to Sanoma’s actual and potential impacts on workers in the value chain.

Fourthly, in relation to the identified impacts on print suppliers’ workers related to actual working time (exceeding working time

agreements), fair remuneration and health and safety, Sanoma has during 2024 engaged with the suppliers requesting them

to deliver plans for preventive and corrective actions to enable effective remedy. The process of these action plans to ensure

preventive and corrective measures is ongoing. Sanoma tracks and assesses the effectiveness of these actions in cooperation

with its suppliers as well as through the annual collection of audit reports, where these cases are expected to be resolved.

Processes to provide or enable remedy in the event of material negative impacts are available and assessed to be effective,

as described under S2-3.

Metrics and targets

S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing

material risks and opportunities

Sanoma does not have time-bound targets for managing workers in the value chain-related impacts, as most impacts are

potential and actual impacts are always handled in a topic-specific manner. Sanoma nevertheless tracks the effectiveness of

its policies and actions in relation to the material actual and potential impacts as described under S2-3 and S2-4. Sanoma

aims that all suppliers agree on its Supplier Code of Conduct. All new suppliers go through Sanoma’s source-to-contract

solution, which aims to incorporate the Supplier Code as a mandatory step for successful selection. To evaluate the

effectiveness of its measures, Sanoma internally follows the share of new suppliers that have agreed on the SCoC annually.


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ESRS S4 Consumers and end-users

Strategy

SBM-3 Material impacts, risks and opportunities and their interaction with the strategy and business model

Sanoma’s actual and potential impacts on consumers and end-users originate from its strategy and business model. Through

its learning and media businesses, Sanoma impacts the lives of millions of people every day. The impacts on consumers and

end-users inform and contribute to Sanoma’s strategy and business model.

Through its learning business, Sanoma advances access to education by co-creating – with teachers – learning materials that

follow the local curriculum. Impacts of access to high-quality and inclusive learning products and services as well as impacts of

digital accessibility on customers, especially students and teachers, are taken into account in Learning’s method creation

process and included in its inclusive learning strategy. Sanoma impacts consumers and end-users, such as teachers and

students, by delivering learning products and services. Sanoma’s learning methods support diversity, differentiation and equal

access to education. Inclusion is an umbrella term also encompassing accessibility. Sanoma offers schools learning materials

that include a variety of digital learning assets to increase learning impact among all students and address barriers to learning

through traditional formats. For example, for some students the barriers of text-based materials can be overcome by an

application providing audio learning content. In order to develop its understanding of students’ needs regarding accessibility of

learning materials, and thus to mitigate the potential negative impact on end-users, Sanoma organises local meetings and

peer review groups with teachers as well as discussions with third-party experts in the field of disabilities. The potential

negative impacts related to accessibility are not considered to be systemic, but rather related to individual products.

Through its media business, Sanoma promotes freedom of expression by delivering reliable information through multiple

media platforms and following journalistic ethics. Consumers have access to independent and reliable journalism and are free

to form their own opinions and participate in public discussion. As a media company, the impact of journalistic ethics and

operations on freedom of expression are always considered when developing Sanoma’s news media.

For its B2B customers, Sanoma offers marketing opportunities to reach Finnish consumers. The Finnish National Audiovisual

Institute (KAVI) gives guidance for age-limits and protection of vulnerable audiences. Sanoma’s editorial teams follow these

instructions when posting material that may harm vulnerable audiences, such as children and young people. The impact of

responsible advertising practices and compliance with green claims regulation are embedded into the B2B processes to

ensure alignment with advertising ethics. The potential negative impacts related to sustainable marketing practices are not

considered to be systemic, but rather related to individual cases.

Data, especially personal data, is an essential part of Sanoma’s business. The impacts of privacy and information security on

media and learning customers are taken into account in product development. In Learning, data helps teachers enhance

learning outcomes, engagement and workflows, and supports students in optimising their individual learning paths. In

Learning, Sanoma processes personal data mostly as a ‘data processor’ on behalf of customers, i.e., schools and

municipalities. In Media Finland, Sanoma uses data to improve its journalistic content, develop personalised recommendations

in media, drive customer-centric marketing, and improve customer experience of digital applications. In Media Finland,

Sanoma’s role is mostly as a ‘data controller’ when handling the personal data of customers and end-users. Journalistic

content recommendations are based on editorial decisions and algorithms. Personal data is also used in digital advertising,

offering the ability to target the customers by segments. Media Finland communicates transparently about its advertising

practices and third parties involved, leveraging EU level advertisement-related standards that aim to continuously improve

market practices.

Sanoma is committed to protecting privacy, implementing security as well as ensuring the ethical use of artificial intelligence

(AI). Privacy impacts to data subjects can be, for example, identity theft, damage to reputation, or loss of sense of trust. This

pertains especially to some of the learning businesses, which process sensitive personal data of children. In addition, the

accelerating use of AI can increase risk of how personal data is used to automate digital platforms and make decisions

affecting individuals. Privacy risks are related to potential non-compliance with GDPR, especially personal data breaches,

which could occur in systems built by Sanoma or delivered by third parties. A breach of security could impact customer privacy

materially. The potential negative impacts related to data and privacy are not considered to be systemic, but rather related to

individual incidents.

Impact, risk and opportunity management

S4-1 Policies related to consumers and end-users

In this section, Sanoma describes the policies and principles adopted to manage impacts on consumers and end-users. In

addition to the Code of Conduct and Sustainability and Human Rights Policy, Sanoma has topic-specific policies related to the

impacts and risks associated with consumers and end-users. These policies are presented in separate paragraphs.

General policies related to consumers and end-users

The principles set in these policies govern Sanoma Corporation and its subsidiaries and apply to all companies, in which

Sanoma has financial control. Sanoma’s policies are approved by the Board of Directors. The President and CEO and the

EMT are ultimately responsible for ensuring that Sanoma’s employees are aware of and comply with the policies. The Code of

Conduct and Sustainability and Human Rights Policy are available for all employees via internal channels and publicly on

Sanoma’s website.

Code of Conduct

The Sanoma Code of Conduct outlines the shared ethical standards for employees and business partners and applies to all

impacts and risks presented in this section. The Code acts as an umbrella for all policies and standards within Sanoma. The

Sanoma Code of Conduct encompasses the Ten Principles of the UN Global Compact on human rights, labour, environment

and anti-corruption.

Sustainability and Human Rights Policy

The Sustainability and Human Rights Policy, published in December 2024, outlines Sanoma’s sustainability-related principles

and summarises its core commitments in its own operations. It defines Sanoma’s sustainability due diligence process,

including identification, assessment, management and remediation of sustainability-related impacts. This policy also outlines

Sanoma’s sustainability management model as well as the responsibilities to identify impacts, risks and opportunities though

the double materiality assessment process. As a signatory of the UN Global Compact (UNGC), Sanoma recognises the

importance of the Agenda 2030 and UN Sustainable Development Goals (SDGs), and adheres to the UN Guiding Principles.


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In relation to impacts on consumers and end-users, Sanoma commits to the Ten Principles related to fundamental

responsibilities in human rights, labour, environment and anti-corruption. The Sustainability and Human Rights Policy is

aligned with internationally recognised instruments, such as the Universal Declaration of Human Rights (UDHR), the

International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work and the OECD

Guidelines for Multinational Enterprises.

Privacy

Sanoma is committed to protecting privacy, advancing data security as well as ensuring the ethical use of artificial intelligence

(AI). Sanoma has adopted several policies to manage and prevent any negative impact or realisation of a risk related to

privacy and information security regarding its media and learning customers. The policies cover the IROs related to impacts of

privacy and info security on media and learning customers and risk of negative privacy impacts and violation of GDPR.

The principles set in these policies govern Sanoma Corporation and its subsidiaries and apply to all companies, in which

Sanoma has financial control. Sanoma’s policies are approved by the Board of Directors. Sanoma’s internal standards,

including the Supplier Code of Conduct, are approved by the President and CEO. The President and CEO and the EMT are

ultimately responsible for ensuring that Sanoma’s employees are aware of and comply with the policies.

Sanoma’s policies are available for all employees via internal channels. The Information Security Policy as well as the Supplier

Code and General Procurement Terms are also publicly available on Sanoma’s website and the latter are referred to during

the negotiation process with the suppliers. Privacy, security and responsible buying are included in the mandatory Code of

Conduct trainings for all employees. In addition, there are specific guidelines in place on how to implement privacy and

security into operations. Sanoma communicates to its customers about privacy in its Privacy Policy statements provided

through the digital interfaces where its digital products are available.

Sanoma’s policies are aligned with the Universal Declaration of Human Rights, Article 12 related to Privacy. In addition,

security controls are selected and implemented based on the industry's leading standards (ISO/IEC 27001, ISO/IEC 27701)

and their code of practices (ISO/IEC 27002, ISO/IEC 27018). Some of the learning businesses are also ISO certified

(Clickedu, itslearning, Bureau Ice, and Iddink Digital).

Privacy and Data Protection Policy

Privacy and Data Protection Policy describes the ten principles that guide the implementation of privacy laws into Sanoma’s

operations. Sanoma’s Chief Legal Officer is accountable for ensuring that the principles, guidelines and processes comply with

the relevant privacy laws. The Data Protection Officer (DPO) owns the policy, and leads a Privacy Programme to provide

privacy advice, monitor compliance of processes for privacy implementation and report on privacy compliance. The Privacy

Programme undergoes internal audits to verify adherence to the Privacy and Data Protection Policy. DPO reports on

compliance to the management and Audit Committee.

Safeguards for processing children's data is one of the ten principles in Sanoma’s Data Protection and Privacy Policy, as

children are users of the products and services of Sanoma’s media, and especially learning business.

Principles of Ethical Use of AI

When using AI, Sanoma applies privacy and personal data protection principles and practices defined in its Privacy and Data

Protection Policy and in the Principles of Ethical Use of AI. The Principles include Fairness with an aim for positive impact,

Accountability by humans, Explainability, Transparency, Risk and impact assessment and Oversight to monitor the

implementation of AI. The Group Legal and Compliance team owns the Principles.

Information Security Policy

Information Security Policy determines the organisational, people, technical and physical controls in ensuring the

confidentiality, integrity and availability of Sanoma’s business operations and how to deal with cyber security risks. The Chief

Information Security Officer (CISO) is the owner of the Information Security Policy and responsible for delivering standards

and guidelines and for facilitating the delivery of high-quality security services. The CISO reports on compliance and security

incidents to the management and Audit Committee.

Supplier Code of Conduct and General Procurement Terms

The Supplier Code of Conduct and General Procurement Terms, owned by the Chief Procurement Officer, set the privacy and

security requirements for suppliers that process personal data of consumers, customers or employees, on Sanoma’s behalf.

The Procurement team is responsible for updating, communicating and leading the implementation of the Supplier Code.

Access to quality information and education

Sanoma has Learning-wide practices to manage the impact its learning materials have on teachers and students. The policies

cover the IRO related to impacts of access to high-quality and inclusive learning products and services.

Editorial guidelines

Sanoma Learning's editorial guidelines state Sanoma’s commitment and approach to editorial ethics and inclusive content.

The three guiding principles are: “We create high-quality learning materials”, “We support diversity and inclusiveness” and “We

ensure equal access”. In addition to the SBU-wide process, each operating company has its own defined editorial process,

respecting the local legal and ethical regulations and norms. In addition, Sanoma follows local curriculum requirements in its

content creation.

The local editorial guidelines are available for employees in internal channels. In addition, the Learning-wide editorial

guidelines are externally available on Sanoma’s website.

Sanoma develops its learning materials together with teachers at different stages of the content creation. Sanoma also

conducts external audits on the inclusion of learning materials on a regular basis.

Inclusive learning strategy

Sanoma’s Inclusive learning strategy was updated in 2024. The Inclusive learning strategy states that Sanoma provides

students access to quality information through blended methods, i.e., print and digital, to guarantee overall availability. This

approach supports diversity, differentiation and equal access to education. Sanoma offers personalised learning pathways to

ensure students can follow information tailored to their needs. In addition, the aim is that students feel represented in the

content regardless of their gender, religion or cultural background. All new or renewed learning materials follow a common


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method creation process and local curriculum requirements. To ensure that the Inclusive learning strategy is adopted by the

entire Learning organisation, it is available and regularly communicated through internal channels.

To develop its guidelines according to teachers' and students' needs, Sanoma utilises the feedback from the stakeholders

gained through, for example, the annually conducted European Teacher Survey and focus groups. Once the guidelines are

implemented, Sanoma also uses the feedback processes to evaluate and ensure the effectiveness of the policies.

The Learning-wide editorial guidelines are reviewed annually by the editorial working group and approved by the President

and CEO. The Learning Strategy team is responsible for the development of the inclusive learning strategy and updating the

editorial guidelines. The local editorial guidelines are approved by the local Managing Directors and implemented by the local

operating companies.

Accessibility: Access to products and services

Sanoma has Learning-wide practices to manage the impact its learning materials have on teachers and students. The policies

cover the IROs related to impacts of digital accessibility on customers, especially students and teachers in Sanoma’s learning

business.

Editorial guidelines

Accessibility is one of the three guiding principles of the Learning-wide editorial guidelines presented in the previous chapter.

The guidelines include Sanoma’s commitment to developing accessibility, and this commitment is also embedded into

Sustainability and Human Rights Policy, applying to all Sanoma’s operations and presented earlier in this section. The

approval process and responsibilities related to the Editorial Guidelines are described in the previous section.

Freedom of expression and media ethics

When publishing content, Sanoma complies with the legislation on freedom of speech and expression, and the legislation

concerning media. In addition, Media Finland follows journalists' guidelines set by a third party or the media itself. The policies

cover the IRO related to the impact of journalistic ethics and operations as a media company on freedom of expression.

Sanoma’s commitment to freedom of speech and the Council of Mass Media's (CMM) Journalist's Guidelines are stated in the

Code of Conduct and in the Sustainability and Human Rights Policy. The self-regulating and independent committee of the

CMM interprets good journalistic practices and oversees the methods by which journalists acquire their information in the field

of mass communication according to its Journalist's Guidelines.

Sanoma is a member of the CMM, and the Journalist's Guidelines are the main guiding principles of the journalistic work at

Media Finland. The Guidelines include the principles of professional status, obtaining and publishing information, the rights of

interviewer and interviewees, right to reply and the definition of private and public. They also give guidance for correcting

possible errors in the media in question and how to separate journalism from advertising. The Journalist’s Guidelines were

renewed in October 2024. They now include four new factors, which concern external funding, changes made to a published

story, dangerous news situations and removal of editorial content from the web. The aim of the Journalist’s Guidelines is to

support the responsible use of freedom of speech and define good journalistic practice in Finland. The Journalist's Guidelines

are publicly available on CMM's website.

Some of Sanoma’s media have their own journalists' instructions that complement the CMM’s Journalist's Guidelines and

guide ethical news work. They are part of the journalists’ daily work in the specific media. Helsingin Sanomat, Satakunnan

Kansa and Aamulehti have published their instructions online.

According to the Freedom of Speech Act, the task of the Editor-in-Chief (responsible editor) is to lead and supervise the

editorial work, decide on the content and take care of, for example, the realisation of the right to rectification and

compensation.

Sanoma’s Editors-in-Chief and supervisors of the editorial teams are responsible for ensuring that all journalists working for

Sanoma understand their professional responsibilities. The Editors-in-Chief and Sanoma’s Forum for the Editors-in-Chief

develop the editorial culture at Sanoma, provide guidance, follow reader surveys and customer feedback and take part in

public discussion on editorial independence, ethics and journalism.

Sanoma’s Board of Directors appoints and dismisses the respective Editors-in-Chiefs of Helsingin Sanomat, Ilta-Sanomat,

Aamulehti and Satakunnan Kansa. Annually, the Board receives reporting on the general conditions of editorial freedom and

how each of the news brands performs against the key metrics presented in their respective strategic plans.

The above mentioned policies apply to all Media Finland's journalistic work and thus consumers and end-users, and the CEO

of Media Finland, who is a member of the EMT, is ultimately responsible for the implementation of the policies.

Responsible marketing practices

Sanoma’s commitment to maintain high ethical standards and truthfulness of advertising practices, protect vulnerable

audiences, and follow the International Chamber of Commerce Advertising and Marketing Communications Code, is included

in the Sustainability and Human Rights Policy.

In its advertising practices, Sanoma complies with the International Chamber of Commerce (ICC) Advertising and Marketing

Communications Code, the EU Framework for Online Behavioural Advertising self-regulation principles issued by IAB Europe

and the marketing self-regulation guidelines of the Data & Marketing Association of Finland. Sanoma reviews the

advertisements it publishes to ensure compliance with the good practice referred to in the International Chamber of Commerce

(ICC) Advertising and Marketing Communications Code.

In addition, Sanoma follows guidelines on advertising ethics set by Finnish institutions such as the Council of Mass Media,

National Audiovisual Institute (KAVI) and the Council of Ethics in Advertising. Sanoma keeps advertising and journalistic

content separate, and does not provide advertisers with digital advertising target groups including children. When it comes to

television, materials that could potentially harm vulnerable audiences, such as children and youth, are published by the

editorial teams according to the KAVI guidelines.

In Finland, ethics in advertising is supervised by The Council of Ethics in Advertising. The Council issues statements on

whether an advertisement or advertising practice is ethically acceptable. The Council deals with issues like discrimination,

decency and social responsibility. Sanoma tracks and responds to the notifications received through The Council of Ethics in

Advertising, and reports the number of notifications annually.


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Sanoma regularly updates the expertise of the team responsible for monitoring the advertising traffic regarding advertising

ethics. This includes both changes in regulations as well as Sanoma’s own guidelines. For example, Sanoma continuously

develops the age classification process and related staff are trained by KAVI. Sanoma has clear practices and processes in

place to ensure that advertising is ethically acceptable as part of the everyday work. In unclear cases, advertisements are

discussed with Editors-in-Chiefs to align views.

The policies cover the IROs related to the impact of responsible advertising practices and compliance with green claims

regulation. The policies apply to all Media Finland's advertising business and thus consumers and end-users, and the CEO of

Media Finland, who is a member of the EMT, is ultimately responsible for the implementation of the policies.

S4-2 Processes for engaging with consumers and end-users about impacts

Sanoma engages, as part of its ongoing due diligence process, with consumers and end-users directly or through credible

proxies, about material actual and potential positive and/or negative impacts that do or are likely to affect them.

Sanoma gains insight into the perspectives of consumers and/or end-users that may be particularly vulnerable to impacts,

such as children, through guidelines provided by data protection authorities authorised to enforce the protection of data

subject rights, guidelines set by third parties as presented in section S4-1 or when regarding education, through engagement

with teachers.

Privacy

GDPR outlines Sanoma’s obligations in fulfilling data subject rights. Sanoma engages with consumers and end-users to meet

these rights. Sanoma does not engage with customers and end-users to gain their perspectives on privacy-related matters so

that they would be considered in Sanoma’s decision-making in a manner that is aligned with the ESRS reporting requirements.

However, Sanoma communicates about its data processing through Privacy Policy Statements available on its websites and

digital products. These Privacy Policy Statements include instructions for data subjects to make requests for data access,

deletion and portability, and the means to reach out to Sanoma’s Data Protection Officer for privacy related inquiries.

Consumer and end-user privacy inquiries are addressed internally on a case-by-case basis. When in the role of data

processor, Sanoma supports the data controllers in fulfilling these obligations. The data subjects can also contact the local

data protection authority to express their privacy concerns.

In the event of a personal data breach that negatively impacts the data subjects' privacy, Sanoma evaluates the incident on a

case-by-case basis according to its personal data breach management process. As required by GDPR, Sanoma will inform

affected individuals at high risk about the breach, how their data was affected and what measures they can take to protect

their privacy. Sanoma assesses the effectiveness of its engagement with consumers and end-users related to privacy through

tracking that all data subjects are responded to and within the time required by the law. Sanoma’s Data Protection Officer is

responsible for engagement with consumers and end-users regarding privacy related inquiries and data breaches.

Access to quality information and education

On a continuing basis, Sanoma engages directly with teachers when co-creating and developing the learning materials. To

follow up on Sanoma’s impact and to better understand the use of various learning materials and tools in each operating

country, Sanoma annually conducts a European Teacher Survey (ETS). In addition, feedback from teachers is gained through

working groups during the process of reviewing the survey results. Sanoma does not directly engage with students, as their

perspective is gained in the engagement with teachers.

Learning's Strategy team is responsible for the ETS. Local operating companies have the operational responsibility for

engagement with teachers. The ETS is also used to assess the effectiveness of the engagement with teachers.

Accessibility: Access to products and services

Sanoma regularly organises local meetings and peer review groups with teachers, and the topic of accessibility of Sanoma’s

products and related development needs is also discussed in these forums. In addition, in some countries discussions with

third-party experts in the field of disabilities are organised. Accessibility is also addressed in the ETS described in the previous

section, and thus also used to assess the effectiveness of the engagement.

Local operating companies have the operational responsibility for engagement with teachers.

Freedom of expression and media ethics

Consumers and end-users can send feedback directly to Sanoma’s media through publicly available contact information or

through leaving comments to the articles available online. Feedback is read by the editorial teams, and can be used to

develop the decision-making in the journalistic process. If the feedback is related to incorrect information, the Journalist’s

Guidelines require that it must be corrected as soon as possible after it comes to the attention of the editorial staff and in such

a way that it will reach the public as widely as possible. Sanoma’s news media each have their own ways to inform the public

how to report errors or how to contact the Editor-in-Chief.

In addition to sending feedback directly to Sanoma, consumers can submit a complaint concerning a breach of good

journalistic practice to the CMM. The matter does not need to concern the complainant personally, but the consent of the

injured party must be included in order for the case to be processed. In the event that the Council considers that any Media

Finland’s media has violated the Journalist's Guidelines, Sanoma is committed to publishing the Council’s condemnatory

decision within a short time span. If the media that has received the notice does not publish it, the notice will be otherwise

made public. Sanoma closely follows the decisions of the CMM, and engages in discussion about the decisions that guide

journalistic work. All Media Finland’s news media have published their own editorial principles. Sanoma tracks and reports the

CMM cases related to its operations externally on an annual basis to further develop professional ethics.

Sanoma assesses the effectiveness of the engagement with consumers and end-users through product-specific surveys

targeted to readers as well as by conducting surveys to people ending their subscriptions. The Editors-in-Chief in each media

are responsible for the engagement with the consumers and end-users.

Responsible marketing practices

Sanoma does not directly engage with consumers regarding advertising. A consumer can request a statement from the

Council of Ethics in Advertising on whether an advertisement or other procedure in commercial marketing is contrary to good

practice or recognisable as marketing, taking into account the ICC marketing rules. There is no time limit for requesting the

statement. Sanoma is not responsible for the content published by the Council, but it tracks and responds to the notifications

received through the Council. The statements from the Council of Ethics in Advertising are reviewed by the Media Finland

Legal team, and the internal guidelines are updated accordingly if needed. Sanoma reports the number of notifications


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externally on an annual basis. Sanoma does not assess the effectiveness of its engagement with consumers and end-users

related to responsible marketing practices.

S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns

Sanoma implements a remediation process to prevent and address material impacts related to consumers and end-users.

Sanoma has identified both actual and potential negative impacts related to privacy, access to products and services as well

as responsible marketing practices. These impacts have been described under S4 SBM-3.

General processes

Sanoma’s third-party hosted anonymous whistleblowing channel enables anyone, including customers and end-users, to

report suspicions of misconduct related to sustainability or human rights issues confidentially and anonymously. According to

its Code of Conduct, Sanoma does not tolerate retaliation against anyone who raises a concern or participates in an

investigation. Sanoma investigates reported cases, reviews incidents, leverages learnings to influence both internal and

external processes and reports the number and types of these cases annually. Material issues are reported to the Audit

Committee as well as the Sustainability and Ethics Working Group.

The effectiveness of this grievance channel is assessed by monitoring the number of cases reported as well as tracking the

cases investigated and solved annually. Sanoma is subject to the requirements of the EU Whistleblowing Directive as well as

national whistleblowing legislation in its operating countries. Sanoma’s whistleblowing channel is available in several

languages relevant for Sanoma’s operations and value chain. Sanoma is unable to evaluate whether customers and end-

users are aware of and trust the structures or processes to raise their concerns.

Additional privacy-specific processes

More specifically for privacy, Sanoma addresses the negative impacts of security incidents affecting personal data on a case-

by- case basis through its data breach management process.

According to Sanoma’s personal data breach management process, each personal data breach case is evaluated separately,

taking into account the potential impacts to data subjects. As required by GDPR, Sanoma informs affected individuals, who are

likely to be at high risk, about the data breach, how their data has been affected and what measures they can take to protect

their privacy. These measures may vary, depending on the nature of the case.

Consumers and end-users can reach out to Sanoma’s Data Protection Officer for any privacy inquiries and to raise privacy-

related concerns.

To monitor the effectiveness of addressing personal data breaches, the number of actual and potential personal data breach

cases is reviewed on a quarterly basis in both Media Finland and Learning. Sanoma reviews the main causes and reasons

behind personal data breaches annually, and plans additional measures to prevent them from happening. In 2024, Sanoma

addressed all personal data breaches in accordance with its personal data breach management process.

S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material

risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those

actions

The chapters below describe the key actions that are implemented and planned to prevent and mitigate negative impacts

related to privacy, access to products and services and responsible marketing practices. In addition, actions with the purpose

of positively contributing to improved social outcomes for consumers and/or end-users related to access to quality information

and freedom of expression are described below.

As described in section S4-2, the actions needed to manage actual or potential negative impacts on consumers and end-users

either come from authorities or third parties and/or are identified during engagement. Sanoma prevents and mitigates potential

negative impacts to its customers and end-users mainly through continuous processes.

The processes to provide remedy have been reported in section S4-3. In 2024, Sanoma did not take actions to provide or

enable remedy in relation to actual material impacts as no need for such actions were identified. There were no severe human

rights issues or incidents connected to Sanoma’s customers or end-users during the reporting period.

Privacy

Sanoma’s Privacy and Security by Design process is a continuous process Sanoma has in place that helps identify actions to

prevent potential material privacy impacts to customers and end-users. Through this process, Sanoma’s product development,

sales, marketing, and advertising teams conduct privacy impact assessments (PIAs) and security reviews when planning new

ways to process personal data.

In the event of a personal data breach that negatively impacts the privacy of data subjects, the incident is evaluated and

actions taken to address potential impacts on a case-by-case basis according to Sanoma’s personal data breach management

process. Affected individuals likely to be at high risk will be informed by Sanoma about how their data has been affected and

what measures they can take to protect their privacy. Individuals affected are provided with means for further inquiry towards

Sanoma.

Potential and actual data breaches are reviewed quarterly to evaluate process effectiveness and identify the need for

additional controls.

Sanoma sets annual targets to enhance the management of material privacy risks, aligning plans with the company strategy

and regulatory trends. The key actions in 2024 related to Privacy were:

Trainings to product managers and developers

In 2024, Sanoma offered training to product managers and developers in both SBUs to help them follow and implement the

Privacy and Security by Design process.

New data mapping tool

In 2024, Sanoma also introduced a Group-wide new data mapping tool to manage the records of processing activities,

improving the efficiency of assessing privacy impacts and risks and data lifecycle management. In 2024, the ransomware

attack on the Dutch learning distribution business, Iddink, also led to actions to improve data lifecycle management.


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AI Governance measures

In 2024, to support AI use and prepare for the EU AI Act, Sanoma defined Group-wide AI Governance measures. These

included creating an inventory of AI use cases and incorporating Ethical AI Principles and the EU AI Act requirements into the

Privacy and Security by Design process. In 2025, Sanoma will train product teams on AI and assess potential risks that AI use

will bring to customers and end-users.

Sanoma measures the effectiveness of privacy risk management processes by monitoring the completion of privacy

assessments before launching new products or features. The maturity of product teams in implementing secure development

standards is also measured. Trends in data subject requests are monitored to provide an indication of potential issues. In

2024, the volume of data subject requests were in line with what is seen as standard volumes.

The number of authority information requests and enforcement actions is also an indication of the effectiveness of managing

potential negative privacy impacts and risks. There was one substantiated authority complaint for Learning about a cookie

banner on a commercial website, which was rectified. In 2024, Sanoma Media Finland appealed to the Supreme

Administrative court regarding a decision from the Finnish Transport and Communications Agency (Traficom) made in 2023,

which found Media Finland's cookie practices non-compliant, particularly in classifying cookies for journalistic content as

strictly necessary and in cookie rejection. Resolution to the case is still pending.

Access to quality information and education

To positively contribute to improved outcomes for students, Sanoma continuously evaluates development needs and actions to

improve the inclusiveness of its learning methods. The engagement with teachers is continuous as described in the section

S4-2.

Method creation process

To ensure high quality methods, all learning material publishing processes follow a Learning-wide method creation process.

The method creation process sets the requirements that all learning materials must meet. The process is regularly updated.

Sanoma has planned to update the method creation process in 2025 to include, for example, the review of the materials from

the DE&I and accessibility perspectives.

Updated Inclusive learning strategy

In 2024, Sanoma updated its inclusive learning strategy. In the update, the main goal to develop inclusive learning solutions

that help all students achieve their potential remained unchanged, but two new focus area were included: accessibility, and

learning methods to support the UN Sustainable Development Goals. The update was undertaken in experts sessions, with

management participating from all Learning operating companies.

The effectiveness of Sanoma’s method creation and inclusive learning strategy is tracked through the European Teacher

Survey, as well as together with teachers when reviewing the results of the ETS in working groups.

Accessibility: Access to products and services

The actions Sanoma is taking on accessibility are targeted to prevent potential negative impacts on end-users. The goal of the

actions is to promote accessibility for the users in speech, hearing, visual, motor and cognitive communication. Developing

accessibility is an ongoing process, which is continuously monitored and updated in line with the WCAG guidelines.

Preparations for the WCAG Guidelines

As part of Sanoma’s ongoing, multi-year learning platform harmonisation project, Sanoma will increase the accessibility

features of its digital products to respond to customer needs, but also to prepare for the EU Directive on the accessibility

requirements for products and services, which will be implemented by all EU member states by June 2025.

In 2024, Learning worked on creating its Accessibility guidelines, that are planned to be published in 2025. The guidelines will

be aligned with the WCAG Guidelines AA-level requirements, representing the views of relevant stakeholders. The Learning

Strategy team is responsible for content accessibility and the Learning product organisation for digital accessibility.

In addition, Sanoma organised experts sessions on accessibility amongst publishers/publishing managers to create

awareness and common ground for the process of making methods more accessible. An accessibility checklist for content was

also created. The document will serve as a guideline for the operating companies, and can be edited according to local

curriculum requirements and legislation.

Audits of digital products

Sanoma regularly conducts audits of its digital products with the help of third parties. In 2024, the target was to conduct an

audit to the Sanoma Learning Design System which includes the components that will be used in Sanoma’s core digital

products. The audit was successfully completed. In addition, a minor part of the pricing of Sanoma’s EUR 300 million

Syndicated Revolving Credit Facility is linked to developing inclusive learning solutions, more specifically the accessibility of

digital learning content and platforms, and this progress is monitored regularly.

The effectiveness of all Sanoma’s accessibility-related actions is tracked through monitoring the completion of accessibility-

related development plans and by performing audits.

Freedom of expression and media ethics

Sanoma carries out actions to positively contribute to freedom of expression and media ethics throughout society.

Updated media-specific guidelines

Journalism is an essential part of Sanoma’s business, and maintaining and building trust is crucial to the Company. Sanoma is

committed to the CMM’s Journalistic Guidelines, and to transparently communicate the general editorial processes. Out of

Sanoma’s newspapers, Helsingin Sanomat has its own ethical guidelines, which complement the Journalistic Guidelines that it

uses in daily work. In early 2024, Helsingin Sanomat published the main principles guiding its work and everyday journalistic

practices. The principles explain why the work is done and, for example, how the published information is verified. The

principles are available in Finnish on the website.

Aamulehti and Satakunnan Kansa have also published their guidelines. Aamulehti has an online article with 35 questions and

answers about journalism, as well as ethical issues. The article was updated in 2024. In the questions, issues raised by

readers were also taken into account. Satakunnan Kansa continuously updates an online article to explain their guidelines.

Ilta-Sanomat also has its own internal ethical guidelines, which are more detailed than the Journalist's Guidelines.

The effectiveness of actions is assessed by collecting feedback through product-specific reader surveys.


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Supporting media literacy and reading skills

One of the most significant ways to strengthen media literacy is to support the relationship of children and young people with

media and reading. In October 2024, Media Finland supported this, for example, by being one of the partners of the Lukuboost

campaign. The goal of the Lukuboost campaign is to stimulate reading enthusiasm, especially among 13–25-year-olds.

According to the Lukuboost campaign survey results, in just three months, more than 6,000 young people had participated in the

campaign with more than 50,000 reading sessions.

In addition, Sanoma participated in February 2024 in News Week, a joint media education theme week for schools and news

media. Its aim is to encourage children and young people in particular to engage with news media and to raise the importance

of critical media literacy. In early 2024, Sanoma’s HS Kids’ News TV programme won its second Kultainen Venla award,

awarding the best TV programmes of the year, in the category of programmes for children and young people.

Responsible marketing practices

To prevent negative impact, Sanoma continuously updates the know-how of its B2B teams related to good marketing

practices. Sanoma has established processes as part of daily operations to identify any potential non-compliance with the ICC

marketing rules. If there is uncertainty whether the advertisement follows good marketing practices, cases are reviewed

together with the Editors-in-chief of the respective newspapers and magazines. The B2B organisation is responsible for the

updating and maintaining processes.

The effectiveness of actions is assessed through tracking the notifications received from the Council of Ethics in Advertising.

Internal guidelines are updated based on the notifications if needed.

Metrics and targets

S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing

material risks and opportunities

Sanoma has not set any measurable time-bound outcome-oriented targets related to consumers and end-users, and does not

have plans to implement such targets. Given the nature of Sanoma’s business, material issues do not change annually, and

therefore the Sustainability Strategy and targets are set for the long term. Sanoma tracks the effectiveness of consumers and

end-users related policies and actions through entity-specific metrics described below.

Privacy

Sanoma’s target is to ensure an effective Privacy- and Security-by-Design process, which helps identify actions to prevent and

manage negative impacts and material risks.

The controls that are implemented for potential threats identified during the Privacy- and Security-by-Design process aim to

prevent negative impacts related to personal data breaches. Monitoring the number and type of data breaches helps evaluate

the effectiveness of the measures taken to prevent these breaches. Also, the way in which each potential or actual personal

data breach is handled can impact the consequences for data subjects. The causes for personal data breaches can also

reveal potential gaps in compliance for handling personal data, lead to increased data subjects requesting to exercise their

rights, and can lead to authority information requests and enforcement actions.

During 2024, there was one major data breach due to its scope (volume of data affected), regarding a ransomware attack for

Iddink Learning Materials in the Netherlands and Iddink Spain. The incident was handled according to Sanoma’s personal

data breach management process. Sanoma has collaborated closely with the authorities, who have indicated that the case

has been closed. Most of the other data breach cases occurred mainly in the media business' B2C sales domain, and typically

were related to a single customer's data.

Consumers and end-users not engaged directly in setting targets or tracking performance against targets. However, Sanoma’s

Legal Compliance and Privacy Team (including the Data Protection Officer) and Sanoma’s CISO have established the targets

based on the continuous improvement of maturity and on monitoring operational metrics for privacy and information security.

Consumers were not engaged directly in identifying lessons or improvements as a result of Sanoma’s performance. However,

the Legal Compliance and Privacy Team (including the Data Protection Officer) and CISO team evaluate outcomes of actions

on an annual basis, as input for annual planning for the following year. Sanoma’s internal Privacy champion network, as a first

line of support, are also included in this discussion.

The KPIs to track the effectiveness of its policies are reviewed on a quarterly basis in Sanoma’s privacy board in respective

business units. In addition, data-related sustainability targets are set annually to increase the maturity of the implementation of

privacy in Sanoma, and have been also part of the Executive Management Team’s short-term incentives.

Table 44. S4-5 Entity-specific disclosure: Customer privacy


Metric used to evaluate progress	2024
Total number of identified personal data breaches (leaks, thefts, or losses of customer data)	178
Substantiated complaints from regulatory bodies concerning breaches of customer privacy and losses of customer data	1

Access to quality information and education

Sanoma’s targets are to co-create high-quality and motivating learning materials with teachers, fitting the local curriculum, to

develop inclusive learning solutions that support diversity, accessibility and differentiation and to promote equal access to

education.

The effectiveness of Sanoma’s development work in relation to high-quality, motivating and inclusive materials is tracked via

Sanoma’s annual European Teacher Survey (ETS). The survey is conducted by asking teachers opinions on several matters

of which 'Use of methods' and thus access to quality information, is the main subject. In the survey, the impacts of learning

materials are evaluated by teachers from three aspects: student engagement, learning outcomes, and teacher efficiency.

Sanoma has not set any quantitative targets for the metrics. The survey results are reviewed throughout the Learning

organisation as well as together with teachers, and used to identify areas for improvement for learning materials.

Accessibility: Access to products and services

Sanoma’s target is that common accessibility components used in Learning’s core digital products are compliant with the AA-

level of the WCAG Guidelines (Web Content Accessibility Guidelines) from 2025 onwards. In addition, more specific targets

are set annually. In 2024, the target was to conduct an audit on the Sanoma Learning Design System, which was successfully

completed.


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The effectiveness of the accessibility-related actions is tracked through monitoring the completion of accessibility-related

development plans, also linked to Sanoma’s loan agreement, and by performing audits. The outcomes of the audits are taken

to the technical teams. Depending on the outcomes, recommendations or deficiencies are put on roadmaps and addressed or

resolved. Accessibility is also addressed in the European Teacher Survey described in the previous section.

Local meetings and peer review groups with teachers are organised regularly, and the intended actions and set targets are

also discussed in these forums. In addition, in some countries discussions with third-party experts in the field of disabilities are

utilised when setting the targets.

Freedom of expression and media ethics

Sanoma’s target is to promote an open democratic society and freedom of speech through its independent media, and to

increase awareness, empathy and tolerance with its journalism. Consumers and end-users do not participate in setting or

tracking performance against the targets, nor are they engaged in identifying lessons or improvements as result of Sanoma’s

performance.

Sanoma continuously monitors the number of notifications of violations concerning aspects of news articles as defined in the

Journalist's Guidelines by The Council of Mass Media, but does not have any target level for the number of notifications as it

cannot impact the number of complaints. If, in the Council's opinion, a media outlet has violated good journalistic practice, the

media in question will be given a warning which must be published within a short period of time.

Sanoma closely follows the decisions of the CMM and the interpretation of the instructions. In 2024, Sanoma received 17

liberating and 5 condemnatory decisions from the CMM. The media learns from the complaints and develops its processes

accordingly.

Table 45. S4-5 Entity-specific disclosure: Resolutions concerning responsible journalism practices as defined in the

Journalist's Guidelines by the Council of Mass Media, number of resolutions


Metric used to evaluate progress	2024
Liberating decisions	17
Condemnatory decisions	5

Responsible marketing practices

Sanoma’s target is to enable companies to thrive through its sustainable marketing solutions that are aligned with responsible

marketing practices. Consumers and end-users do not participate in setting or tracking performance against the targets, nor

are they engaged in identifying lessons or improvements as a result of Sanoma’s performance.

Sanoma continuously monitors the cases of non-compliance against the Advertising and Marketing Communications Code of

the International Chamber of Commerce, but does not have any target level for the number of incidents as it cannot impact the

number of statement requests to the Council of Ethics in Advertising. The Council of Ethics in Advertising delivers its response

to the statement request directly to the consumer who requested it. The statements from the Council of Ethics in Advertising

are also public.

All statement requests regarding advertising in Sanoma’s media are forwarded to Media Finland’s B2B business management.

Sanoma’s legal affairs ensure that the response to the statement request refers to the principles of good marketing practices.

In 2024, Sanoma had two incidents of non-compliance with voluntary codes according to the Council of Ethics in Advertising.

Table 46. S4-5 Entity-specific disclosure: Incidents of non-compliance concerning marketing communications,

number of cases


Metric used to evaluate progress	2024
Incidents of non-compliance with voluntary codes (the Advertising and Marketing Communications Code)	2


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Governance information

ESRS G1 Business conduct

Impact, risk and opportunity management

G1-1 Business conduct policies and corporate culture

Policies related to business conduct

Sanoma has several policies in place to manage the impacts and risks related to business conduct. All of these policies apply

to all of Sanoma employees and throughout its own operations, and they have been approved by the Board of Directors.

Sanoma’s standards, including the Anti-Harassment Standard, are approved by the President and CEO. The President and

CEO and the Executive Management Team (EMT) are ultimately responsible for ensuring that Sanoma personnel are aware

of, and comply with policies. Group Legal team owns the business conduct-related policies, excluding the Procurement Policy

which is owned by the Group Procurement team and the Anti-Harassment Standard which is owned by the Group HR team.

Policy owners are directly responsible for a particular policy's implementation, communication, and ongoing maintenance. All

of the policies are available internally, whereas the Code of Conduct is also available on Sanoma’s website.

Code of Conduct

The Code of Conduct sets out Sanoma’s compliance standards and ethical values, and the principles of business conduct.

The Code of Conduct establishes Sanoma’s commitment to respecting the international standards on human rights, freedom

of speech, labour conditions, the environment and anti-corruption as defined in the Ten principles of the UN Global Compact,

the UN Guiding Principles on Business and Human Rights, the Universal Declaration of Human Rights and the OECD

Guidelines on Multinational Enterprises. It also establishes other relevant commitments, such as to respecting the ILO’s

Declaration on Fundamental Principles and Rights at Work by respecting freedom of association, right to collective bargaining,

rights not to be subject to forced labour, child labour or discrimination in respect of employment and occupation and respect

the working hours as well as the health and safety of our employees, and commitment to rights of freedom of expression and

opinion.

Every year, all employees are required to complete a mandatory Code of Conduct refresher training. In addition, new

employees must take a Code of Conduct e-learning as part of their induction process. Completion rates of the Code of

Conduct trainings are tracked to ensure full coverage.

The Code of Conduct is an overarching policy that covers several IROs such as the risk related to clarity of ethical

expectations, risk related to anti-bribery, corruption, gift and hospitality, impacts on whistleblowers and the existence of a

channel and a speak-up culture as well as social IRO's related to S1 and S2 listed in the table in section SBM-3.

Anti-Bribery and Corruption Policy

The Anti-Bribery and Corruption Policy establishes Sanoma’s zero tolerance to bribery and corruption of any kind, whether

involving public officials or private sector entities, and commitment to acting with integrity in all Sanoma’s business dealings

and relationships. In addition to the prohibition of corruption and bribery, the policy covers topics such as the facilitation of

payments, rules for gifts and entertainment, rules on travel and accommodation, barter and exchange agreements, donations,

conflicts of interest, record keeping provisions, and money laundering. Sanoma’s Anti-Bribery and Corruption Policy is

consistent with the UN Convention against Corruption.

The policy covers the following IRO: risk related to anti-bribery, corruption, gifts and hospitality.

Donations and Sponsorships Policy

The Donations and Sponsorships Policy defines Sanoma’s principles, decision-making process and criteria that are applied to

donations and sponsorships.

The policy covers the following IRO: impacts of political engagement and lobbying of Media and Learning businesses.

Intellectual Property Rights (IPR) Policy

The Intellectual Property Rights (IPR) Policy defines the principles of creation, acquisition, protection, maintenance, defence

and licensing of IPR at Sanoma. This policy applies to IPR in digital formats including IPR online, in social media and artificial

intelligence (AI) applications, as well as in print and other physical word formats. More specifically regarding AI, the policy

advises on performing risk assessments in using third-party generative AI solutions to avoid leakage or infringements of

Sanoma’s IPR, and to ensure there is no risk of infringement of third-party rights.

The policy covers the following IROs: Risk related to management of IPR rights and risk related to Gen AI -assisted works.

Anti-Harassment Standard

In addition to the policies, the IRO related to anti-harassment is managed through the internal Anti-Harassment Standard that

describes the process of handling cases in detail. The Group HR function is responsible for updating, communicating and

leading the implementation of the Anti-Harassment Standard. The People Policy, described in section S1-1, also covers anti-

harassment.

Supplier Code of Conduct (SCoC)

Sanoma’s key standard related to the management of suppliers is the SCoC, last updated in November 2024. The SCOC sets

out the ethical standards and responsible business principles which Sanoma’s upstream suppliers are required to comply with.

The SCoC is aligned with internationally recognised instruments relevant to value chain workers. The Policy is described in

more detail in section S2-1.

In the 2024 update, the SCoC requirements were extended throughout the supply chain, beyond tier 1 suppliers. In addition,

requirements related to training and skills development opportunities, whistleblowing channel availability and working time were

clarified. The suppliers are required to offer mechanisms to raise complaints or concerns, monitor complaints, protect individuals

from retaliation, engage with relevant stakeholders and implement remediation processes to address any adverse human rights

impacts, maintain on site all documentation that may be needed to demonstrate compliance, implement improvements to

achieve compliance in the event of any infringement and submit to Sanoma a report specifying the actions taken and progress

made in achieving compliance. Sanoma or a third party is also permitted to audit the suppliers' compliance with the SCoC.

The policy covers the following IRO: risk of supplier non-compliance with SCoC and lack of sufficient DD or audits regarding

supplier compliance.


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Procurement Policy and General Procurement Terms and Conditions

The Procurement Policy outlines the roles and responsibilities related to procurement as well as define key processes related

to supplier selection and purchasing. The goals of the policy are to provide clarity about roles and responsibilities, apply

consistency in procurement activities, select the right suppliers to support Sanoma’s businesses objectives, manage

Sanoma’s supply base as well as to ensure visibility and control on Sanoma’s third-party spend. Unless specifically agreed

otherwise, Sanoma’s General Procurement Terms, available on Sanoma’s website, apply to all purchase orders. Adherence to

the policy is validated through a defined set of Procurement Control Points and internal audits on the procurement processes

and guidelines.

The policy covers the IRO related to the impact on the suppliers through payment practices.

Corporate culture

Sanoma’s President and CEO, in accordance with the Finnish Companies Act, manages Sanoma’s daily operations in line

with the long-term goals and business strategy of the Group approved by the Board of Directors, and in accordance with the

general policies adopted by the Board of Directors as well as other applicable guidelines and decisions. Sanoma establishes

its corporate culture through training and awareness-building efforts of its policies.

Code of Conduct and related trainings

All Sanoma employees are required to apply the Code of Conduct in their day-to-day conduct and business decisions.

Sanoma provides trainings and e-learning, and uses different control mechanisms to ensure compliance with the Code of

Conduct and other policies. Sanoma has a mandatory Code of Conduct training which is an annually updated Code of

Conduct refresher e-learning for all employees. It includes dedicated sections on general ethics, anti-bribery and corruption

rules, competition law, privacy, security, AI, and compliance with supplier relationship management. In addition, new

employees must take a Code of Conduct e-learning as part of their induction process. The Code of Conduct and the

corresponding mandatory trainings were available in English, Finnish, Dutch, Spanish, Italian, Polish and French in 2024.

Sanoma has also identified business areas where employee groups need to be trained regarding specific policies. Therefore,

to complement the Code of Conduct training, various role-based compliance trainings are implemented within the areas of

privacy, information security, competition law and anti-bribery and corruption.

Procurement, as well as the sales teams in countries where the sales happens through agents, such as Spain and Italy, have

been identified as functions that are most at risk in respect of corruption and bribery. A more in-depth training on anti-bribery

and corruption targeted to new sales organisation employees is planned for 2025 in Spain and Italy.

Awareness building campaigns

Sanoma runs annual awareness building campaigns in internal channels to promote relevant areas of business conduct, such

as speaking up about misconduct, diversity and inclusion, gifts and hospitality rules as well as privacy, AI and security. The

awareness building campaigns are targeted to all Sanoma employees. In 2024, Sanoma carried out awareness campaigns

related to gifts and hospitality, privacy and security.

Reporting channels for misconduct

Sanoma aims to build a culture where people feel at ease to identify and bring up any form of misconduct. Violations of the

Code of Conduct, or any related policy or law, are encouraged to be reported through various reporting channels, such as

Human Resources, managers, local Compliance Officers or local compliance committees e.g., Controlling Board in Italy,

Group Compliance team, local trade union representatives, Internal Audit or the whistleblowing channel that allows for

anonymous reporting and is available also for external parties.

The whistleblowing tool is an externally hosted channel that enables Sanoma employees, customers and business partners to

report suspicions of misconduct confidentially and anonymously. With this early warning system, Sanoma fosters high

business ethics, maintains customer and public trust, and reduces risks for misconduct. The whistleblowing tool and other

reporting channels are promoted on Sanoma’s intranet channels and the whistleblowing tool is also available on Sanoma’s

website. Only Sanoma’s Chief Legal Officer and Head of Internal Audit are able to access the reports under strict

confidentiality obligations. Sanoma’s Code of Conduct states a zero tolerance policy for retaliation against whistleblowers. The

zero tolerance policy for retaliation against whistleblowers is also communicated through speak-up awareness campaigns. It is

also addressed in Sanoma’s internal Workplace Anti-Harassment Standard, which highlights to employees the types of

behaviour that are deemed unacceptable, and promotes how to address such unwarranted behaviour without fear of

retaliation. No specific training is provided for those handling the reports internally.

All misconduct cases pertaining to business conduct, including incidents of corruption and bribery, regardless of the channel

through which they are reported, are promptly and independently investigated by Internal Audit in collaboration with policy

owners. For harassment cases, HR is responsible for the investigation. If found true, the case leads to disciplinary, legal, or

other actions. Internal Audit report to the Audit Committee about all identified and investigated misconduct cases.

Sanoma is subject to the requirements of the EU Whistleblowing Directive as well as national whistleblowing legislation in its

operating countries. In operating countries where local legislation sets requirements (Spain, Netherlands and Poland),

Sanoma has in 2024 carried out actions to establish separate subsidiary-specific channels. These channels are planned to be

included in the Group’s whistleblowing tool in early 2025. Specific training will be provided to people receiving the reports.

Tracking effectiveness

To track the effectiveness of policy implementation and measures taken to enhance and promote its corporate culture,

Sanoma, for example, asks about employees’ ability to speak up about ethics and compliance concerns in the annual

Employee Engagement Survey. In addition, the Code of Conduct trainings’ completion rate is monitored annually and the

number of gifts and hospitality requests are reported to the Sustainability and Ethics Working Group. The number of

investigated misconduct cases is reported to the Sustainability and Ethics Working Group and Board of Directors’ Audit

Committee. Trends detected in the types of misconducts reported help Sanoma evaluate the effectiveness of measures taken

to raise awareness about the topics that have been raised.

In addition, compliance risks are assessed as part of Sanoma’s double materiality assessment. Regular evaluation of

compliance risks, in addition to monitoring trends in types of misconducts reported, helps Sanoma evaluate the need to further

develop its compliance culture. For example, in 2024, Sanoma defined measures to implement AI Governance in preparation


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for the AI Act and to mitigate potential AI risks. AI trainings, inventory management and risk assessments will continue to be

executed in 2025 across both businesses.

Minimum Disclosure Requirement MDR-T

Sanoma has not set any measurable time-bound outcome-oriented targets related to business conduct, and does not have

plans to implement such targets. However, it tracks the effectiveness of business conduct-related policies and actions through

monitoring the completion rate of the Code of Conduct trainings.

Table 47. Entity-specific metric: Completion of Code of Conduct trainings


Metric used to evaluate progress	2024
Annual Code of Conduct reminder e-learning completion rate, percentage of employees	97%
New employee introduction to Code of Conduct e-learning completion rate, percentage of new employees during the year	78%

The scope of the Annual Code of Conduct reminder training include all employees present during the period of the training. All Sanoma employees who

had started employment before August 2024, needed to take the Code of Conduct reminder e-learning course in 2024.

G1-2 Management of relationships with suppliers

Approach to relationship with suppliers

Sanoma is committed to responsible business practices and ethics throughout its supply chain. Sanoma’s key standard

related to relationships with suppliers is the Supplier Code of Conduct (SCoC) described in G1-1 and in S2-1 in more detail.

The SCoC sets out the ethical standards and responsible business principles, which the suppliers are required to comply with.

The standard also includes sustainability-related requirements. The SCoC is aligned with internationally recognised

instruments relevant to value chain workers. The suppliers shall apply these standards and principles throughout the supply

chain, including their affiliates and sub-contractors.

In addition to the SCoC, Sanoma requires suppliers using data on Sanoma’s behalf to comply with the data protection and

information security requirements. The paper and print supplier agreements include Sanoma’s Paper Procurement standard

that sets environmental criteria related to the use of certified paper as well as recommendations to apply environmental and

quality management systems. The Paper Procurement standard is further described under E4-2.

As the majority of Sanoma’s supply chain emissions is generated in paper and print production, Sanoma focuses its emission

reduction initiatives on these categories. Thus, when selecting paper suppliers, emissions are taken into account in decision-

making. In the print category, Sanoma is currently building an analysis of the suppliers’ sustainability approach, which will be

implemented in the supplier evaluation process. Sanoma also cooperates and engages closely with these suppliers, for

example through a Supplier Day hosted in 2024 for paper and print suppliers.

Sanoma utilises a Know Your Counterparty (KYC) process to identify risks of doing business with third parties by looking at

their ownership, activities and role. KYC background checks are performed on new suppliers as part of the supplier selection

process. The tool identifies possible third-party non-compliance and includes human rights, anti-bribery, corruption, and

sanctions checks. In cases of medium or high risk, the escalation principles and process to consult Group Legal is established.

In addition, Sanoma carries out monitoring and risk assessments during supplier cooperation within the risk categories/areas.

In key categories, such as paper and print production, Sanoma collects more detailed info about the suppliers’ maturity in

sustainability topics through, for example, audit reports, certificates and energy and material usage data.

Policy to prevent late payments

Goods and services are purchased in accordance with Sanoma’s General Procurement Terms and Conditions as well as the

internal Procurement Policy. They include Sanoma’s payment terms and apply to all supplier categories, including SMEs,

unless separately agreed otherwise together with the supplier. Sanoma’s standard payment term is 45 days. However,

payment terms can be negotiated depending on category-specific requirements. For example, Sanoma uses a 14-day

payment term for self-employed suppliers and natural persons. Sanoma provides internal trainings on invoice handling,

communicates about payment practices to suppliers and has a ticketing system for any exceptions in invoices to ensure fair

practices. Sanoma’s Accounting Services controls the invoice flow, and sends reminders in case invoices are not handled

close to due dates.

G1-3 Prevention and detection of corruption and bribery

Sanoma has established procedures to prevent, detect, and address allegations or incidents of corruption and bribery.

Training and awareness building are seen as a key preventive measure. Sanoma’s Code of Conduct trainings, as described in

G1-1, cover the topics of anti-corruption and bribery as well as raising concerns. The completion rate of the trainings is

monitored. The trainings are mandatory for all Sanoma employees, including the Executive Management Team. The Board of

Directors or the Audit Committee are not in the scope of the trainings.

Sanoma also carries out separate awareness campaigns on the gifts and hospitality reporting practices annually. The

reporting of gifts and hospitality fosters an ethical culture by helping employees understand the importance of integrity and

accountability, and helps monitor that they remain within acceptable limits and do not influence business decision-making. The

gift & hospitality tool is available for employees in internal channels. The Supplier KYC process identifies flags related to

suspected, investigated and confirmed instances of bribery and corruption among potential and actual suppliers. In Italy,

criminal records for specific roles, such as agents used for promotional purposes, may be checked.

Employees are actively encouraged to speak-up if they detect any form of misconduct, including incidents of anti-corruption

and bribery. Sanoma runs an annual awareness campaign for all employees to increase awareness about different types of

misconduct and encourage speaking up. All the same channels that Sanoma has in place to report about misconduct in

business conduct can also be used for incidents concerning corruption and bribery, as reported in G1. Sanoma tracks the

number of cases submitted and investigated through different channels.

All misconduct cases pertaining to incidents of corruption and bribery, regardless of the channel through which they are

reported, are promptly and independently investigated by Internal Audit separately from the chain of management involved.

Italy also has in place an independent local compliance committee called “Controlling Board” for investigation purposes, which

includes an external member of the Controlling Board to ensure independence of the body. Internal Audit informs the Audit

Committee about all identified and investigated misconduct cases. Sanoma’s Code of Conduct states a zero tolerance for

retaliation against whistleblowers.


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0% of the functions-at-risk, as described in G1-1, were specifically trained for anti-corruption and bribery in 2024. However,

these topics are covered in the mandatory Code of Conduct trainings. More in-depth trainings targeted to new sales

organisation employees are planned for 2025 in Spain and Italy.

Metrics and targets

G1-4 Incidents of corruption or bribery

Table 48. G1-4 Confirmed incidents of corruption or bribery


Confirmed incidents of corruption or bribery	2024
Number of convictions for violation of anti-corruption and anti-bribery laws	0
Amount of fines for violation of anti-corruption and anti-bribery laws, EUR	0
Number of confirmed incidents of corruption or bribery	0
Number of confirmed incidents in which own workers were dismissed or disciplined for corruption or bribery-related incidents	0
Number of confirmed incidents relating to contracts with business partners that were terminated or not renewed due to violations related to corruption or bribery	0

No actions were taken to address breaches in procedures and standards of anti-corruption and anti-bribery as there were zero

reported incidents. Sanoma did not have any public legal cases regarding corruption or bribery brought against it or its own

workers during the reporting period.

G1-5 Political influence and lobbying activities

Sanoma’s President and CEO is responsible for the oversight of political influence and lobbying activities. Sanoma’s

Donations and Sponsorship Policy prohibits Sanoma from making any donations for political purposes. In 2024, Sanoma did

not have any financial or in-kind political contributions.

Sanoma’s key topics for lobbying activities and its main positions are:

■ Improving learning outcomes (related to IRO Impact of access to high-quality and inclusive learning products and

services): Sanoma promotes using (only) professionally produced education materials in education, increasing education

investments per student as well as having strong copyright protection for using education materials in training AI.

■ Supporting the media's operating conditions (related to IRO Impact of journalistic ethics and operations as a media

company to freedom of expression): Sanoma promotes levelling the playing field with global platform giants, protecting its

content with strong copyright, preventing unfair competition by national public service broadcaster and maintaining a

lowered tax rate for media.

■ Copyright (related to IRO Risk related to management of IPR rights): Sanoma promotes strong copyright protection for its

content, fair terms for using (Audiovisual) content and direct licensing as a primary form of copyright licensing.

■ Reforming the Finnish gambling legislation (related to IRO Impact of responsible advertising practices and compliance with

green claims regulation): Sanoma promotes responsible advertising related to the opening up of gambling advertising in

Finnish media.

Sanoma Media Finland Ltd (440600622097-82) is registered in the EU Transparency Register. Sanoma Corporation

(712395115155-72) is not directly registered in the EU Transparency Register.

No members of Sanoma’s administrative, management and supervisory bodies have held a comparable position in public

administration in the two years preceding such appointment in the reporting period.

G1-6 Payment practices

Sanoma’s standard payment term in general procurement terms is 45 days. However, payment term can be negotiated

depending on category/supplier-specific requirements. In addition, Sanoma uses 14 days for self-employed suppliers and

natural persons.

Payment practices are tracked annually, and the data is available from a centrally used tool. Calculations are made from the

invoice date to the payment date. If there are clear errors in the dates (for example, payment date being before invoice date),

they are excluded from the calculations.

Table 49. G1-6 Metrics related to payment practices


	2024
Average number of days to pay an invoice from the invoice date	27
Share of on time payment to suppliers, percentage of payments aligned with standard payment terms	91%
Legal proceedings related to late payments	0

Data from operating companies that are not in Sanoma’s centralised invoice processing system has been estimated to have

the same average number of days to pay invoice. The share of estimated data represents 20% of the data.


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Key indicators and share indicators

Key indicators


EUR million	2024	2023	2022	2021	2020
Net sales1	1,344.8	1,392.9	1,298.3	1,251.6	1,061.7
Operational EBITDA1	360.8	358.3	355.4	361.0	309.9
% of net sales1	26.8	25.7	27.4	28.8	29.2
Operational EBIT excl. PPA1	180.0	175.4	189.3	197.2	156.5
% of net sales1	13.4	12.6	14.6	15.8	14.7
Items affecting comparability in EBIT1	-61.5	-82.3	-37.9	-15.8	135.9
Purchase price allocation adjustments and amortisations (PPAs)1	36.7	41.3	39.3	39.0	22.3
EBIT1	81.8	51.7	112.0	142.4	270.1
% of net sales1	6.1	3.7	8.6	11.4	25.4
Result before taxes1	48.4	20.6	99.2	133.8	261.0
% of net sales1	3.6	1.5	7.6	10.7	24.6
Result for the period from continuing operations1	40.6	4.1	77.0	101.4	237.8
% of net sales1	3.0	0.3	5.9	8.1	22.4
Result for the period	40.6	4.1	77.0	101.2	247.1
% of net sales	3.0	0.3	5.9	8.1	23.3
Balance sheet total	1,879.1	2,036.6	2,103.6	1,932.5	2,048.3
Capital expenditure	37.7	43.1	52.9	41.7	42.5
% of net sales	2.8	3.1	4.1	3.3	3.7
Free cash flow	145.3	105.1	111.7	139.7	94.8
Return on equity (ROE), %	5.3	0.5	11.2	14.7	40.7
Return on investment (ROI), %	5.8	3.5	7.7	10.2	24.0
Equity ratio, %	45.0	42.5	35.8	40.6	37.4
Net gearing, %	73.7	80.0	117.3	85.5	93.1
Interest-bearing liabilities	589.6	705.6	864.4	668.8	775.3
Non-interest-bearing liabilities	517.8	531.6	537.1	542.8	560.4
Net debt	568.5	639.7	823.4	616.4	660.7
Net debt / Adj. EBITDA	2.2	2.8	3.2	2.4	2.6
Average number of employees (FTE)1	4,820	5,119	5,018	4,885	4,255
Number of employees at the end of the period (FTE)1	4,648	5,017	5,079	4,822	4,806

1 Figures contain only continuing operations.

2 Advances received included in the formula of equity ratio were EUR 162.5 million in 2024 (2023: 153.8).

Share indicators


EUR	2024	2023	2022	2021	2020
Earnings/share, continuing operations1	0.19	-0.03	0.47	0.62	1.46
Earnings/share	0.19	-0.03	0.47	0.61	1.51
Earnings/share, diluted, continuing operations1	0.19	-0.03	0.47	0.61	1.45
Earnings/share, diluted	0.19	-0.03	0.47	0.61	1.51
Operational earnings/share, continuing operations1	0.46	0.39	0.65	0.69	0.58
Operational earnings/share	0.46	0.39	0.65	0.69	0.67
Free cash flow per share	0.89	0.64	0.68	0.86	0.58
Equity/share	4.72	4.88	4.26	4.38	4.23
Dividend/share2	0.39	0.37	0.37	0.54	0.52
Dividend payout ratio, %2	206.5	neg.	79.2	87.9	34.4
Operational dividend payout ratio, %2	84.1	93.8	56.8	77.9	77.9
Market capitalisation, EUR million3	1,251.9	1,134.7	1,602.4	2,218.5	2,240.1
Effective dividend yield, %2	5.1	5.3	3.8	4.0	3.8
P/E ratio	40.6	neg.	21.0	22.2	9.1
Adjusted number of shares at the end of the period3	163,215,973	163,267,618	163,177,768	162,886,049	163,036,686
Adjusted average number of shares3	163,413,155	163,253,094	163,130,613	163,165,194	163,041,596
Lowest share price	6.27	5.91	9.48	12.80	6.84
Highest share price	7.80	10.30	14.78	17.12	14.00
Average share price	6.90	7.58	12.56	14.54	10.15
Share price at the end of the period	7.67	6.95	9.82	13.62	13.74
Trading volumes, shares	11,643,942	21,898,627	12,404,976	16,289,472	29,310,738
% of shares	7.1	13.4	7.6	10.0	18.0

1 Figures contain only continuing operations.

2 Year 2024 proposal of the Board of Directors.

3 The number of shares does not include treasury shares.


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Definitions of key indicators


KPI		Definition		Reason to use
Comparable (or organic) net sales (growth)	=	Net sales (growth) adjusted for the impact of acquisitions and divestments		Complements reported net sales by reflecting the underlying business performance and enhancing comparability between reporting periods
Items affecting comparability (IACs)	=	Gains/losses on sale, restructuring incl. transaction and integration costs of acquisitions or efficiency program expenses and impairments that exceed EUR 1 million		Used to reflect the underlying business performance and enhance comparability between reporting periods
Operational EBITDA	=	EBIT + depreciation, amortisation and impairments - IACs		Measures the profitability before non-cash- based depreciation and amortisation, reflects the underlying business performance and enhances comparability between reporting periods
Purchase price allocation adjustments and amortisations (PPAs)	=	Purchase price allocation amortisations and cost impact of the inventory fair value adjustments		A component used in the calculation of KPIs (incl. operational EBIT excl. PPA)
Operational EBIT excl. PPA	=	EBIT - IACs - Purchase price allocation adjustments and amortisations (PPAs)		Measures the profitability excl. acquisition- related PPA adjustments and amortisations, reflects the underlying business performance and enhances comparability between reporting periods
Equity ratio, %	=	Equity total	x 100	One of Sanoma’s long-term financial targets, measures the relative proportion of equity to total assets
Equity ratio, %	=	Balance sheet total - advances received	x 100
Free cash flow	=	Cash flow from operations - capital expenditure		Basis for Sanoma’s dividend policy
Free cash flow / share	=	Free cash flow		Basis for Sanoma’s dividend policy
Free cash flow / share	=	Weighted average number of shares on the market		Basis for Sanoma’s dividend policy
Net debt	=	Interest-bearing liabilities (short or long-term liabilities which have separately determined interest cost) - cash and cash equivalents		Measures Sanoma’s net debt position
Net debt / Adj. EBITDA	=	The adjusted EBITDA used in this ratio is the 12-month rolling operational EBITDA, where acquired operations are included and divested operations excluded, and where programming rights and prepublication rights have been raised above EBITDA on the basis of cash flow		One of Sanoma’s long-term financial targets, provides investors information on Sanoma’s ability to service its debt
Net financial items	=	Financial income - financial expenses		Measures Sanoma’s net financing cost
EPS	=	Result for the period attributable to the equity holders of the Parent Company - tax adjusted interest on hybrid loan		Measures Sanoma’s result for the period per share
EPS	=	Weighted average number of shares on the market		Measures Sanoma’s result for the period per share


KPI		Definition		Reason to use
Operational EPS	=	Result for the period attributable to the equity holders of the Parent Company - tax adjusted interest on hybrid loan - IACs - tax effect of IACs - non-controlling interests’ share of IACs		In addition to EPS, reflects the underlying business performance and enhances comparability between reporting periods
		Weighted average number of shares on the market
Net gearing, %	=	Interest-bearing liabilities (short- or long-term liabilities which have separately determined interest cost) - cash and cash equivalents	x 100	Measures how much debt in relation to equity Sanoma is using to finance its assets
		Equity total
Return on equity (ROE), %	=	Result for the period	x 100	Measures the company’s relative profitability, i.e., the profit received for the equity employed
		Equity total (average of monthly balances)
Return on investment (ROI), %	=	Result before taxes + interest and other financial expenses	x 100	Measures the company’s relative profitability, i.e., the profit and interest received for net assets employed
		Balance sheet total - non-interest-bearing liabilities (average of monthly balances)
Non-interest-bearing liabilities	=	Non-interest-bearing liabilities include trade and other payables, contract liabilities, deferred and income tax liabilities, provisions and pension liabilities
Equity/share	=	Equity attributable to the equity holders of the Parent Company
		Adjusted number of shares on the market at the balance sheet date
Dividend payout ratio, %	=	Dividend/share	x 100
		Result/share
Operational dividend payout ratio,%	=	Dividend/share	x 100
		Operational EPS
Effective dividend yield, %	=	Dividend/share	x 100
		Share price on the last trading day of the year
P/E ratio	=	Share price on the last trading day of the year	x 100
		Result/share
Market capitalisation	=	Number of shares on the market at the balance sheet date x share price on the last trading day of the year


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Reconciliation of certain key figures

Reconciliation of operational EBIT excl. PPA


EUR million	2024	2023
EBIT	81.8	51.7
Items affecting comparability (IACs) and PPA adjustments and amortisations1
Learning
Impairments	-28.6	-10.1
Capital gains/losses	-0.4
Restructuring expenses	-28.3	-33.3
PPA adjustments and amortisations	-30.4	-34.5
Media Finland
Impairments		-3.2
Capital gains/losses	5.6	1.6
Restructuring expenses	-8.6	-3.8
VAT claims for years 2015–2018 and 2019–2021		-35.9
PPA adjustments and amortisations	-6.3	-6.8
Other operations
Impairments	-0.4
Capital gains/losses		2.9
Restructuring expenses	-0.7	-0.6
Items affecting comparability (IACs) and PPA adjustments and amortisations total	-98.2	-123.7

Operational EBIT excl PPA	180.0	175.4

Depreciations of buildings and structures	-26.4	-27.9
Depreciation of rental books	-3.9	-7.4
Amortisation of film and TV broadcasting rights	-55.2	-58.9
Amortisation of prepublication rights	-46.4	-42.5
Other depreciations, amortisations and impairments	-79.0	-57.8
Items affecting comparability in depreciation, amortisation and impairments	30.1	11.6
Operational EBITDA	360.8	358.3

Items affecting comparability (IACs) in results of associated companies


EUR million	2024	2023
Media Finland
Fair value remeasurement of previously held equity interest		-1.0
Total		-1.0

1 Items affecting comparability and PPA adjustments and amortisations are unaudited.


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Reconciliation of operational EPS


EUR million	2024	2023
Result for the period attributable to the equity holders of the Parent Company	40.5	3.3
Current year interest on the hybrid bond net of tax	-9.6	-7.6
Items affecting comparability	61.5	83.3
Tax effect of items affecting comparability	-16.5	-14.6
Non-controlling interests' share of items affecting comparability	-0.1
Operational result for the period attributable to the equity holders of the Parent Company	75.8	64.4
Weighted average number of shares on the market	163,413,155	163,253,094
Operational EPS	0.46	0.39

Reconciliation of net debt


EUR million	31 Dec 2024	31 Dec 2023
Non-current financial liabilities	367.8	249.4
Current financial liabilities	88.0	301.4
Non-current lease liabilities	104.1	124.8
Current lease liabilities	29.7	30.0
Cash and cash equivalents	-21.1	-65.9
Net debt	568.5	639.7

Reconciliation of adjusted EBITDA


EUR million	2024	2023
12-month rolling operational EBITDA	360.8	358.3
Impact of acquired and divested operations	0.0	0.1
Impact of programming rights	-53.2	-64.9
Impact of prepublication rights	-46.1	-55.3
Impact of rental books	-3.7	-8.7
Adjusted EBITDA	257.9	229.5

Reconciliation of comparable net sales growth


EUR million	2024	2023
Group
Net sales	1,344.8	1,392.9
Impact of acquired and divested operations	-3.0	-27.3
Comparable net sales	1,341.9	1,365.5
Comparable net sales growth, %	-2	2

Learning
Net sales	764.2	795.2
Impact of acquired and divested operations		-14.1
Comparable net sales	764.2	781.1
Comparable net sales growth, %	-2	6

Media Finland
Net sales	580.9	597.8
Impact of acquired and divested operations	-3.0	-13.3
Comparable net sales	577.9	584.6
Comparable net sales growth, %	-1	-3

Reconciliation of return on equity (ROE), %


EUR million	2024	2023
Result for the period	40.6	4.1
Equity total (average of monthly balances)	771.7	766.1
Return on equity, %	5.3	0.5


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Reconciliation of return on investments (ROI), %


EUR million	2024	2023
Result before taxes	48.4	20.6
Interest and other financial items	37.7	35.3
Result before taxes excl. interests and other financial items	86.1	55.9
Balance sheet total (average of monthly balances)	2,059.4	2,170.6
Non-interest-bearing liabilities (average of monthly balances)	-581.7	-591.2
Balance sheet total - non-interest-bearing liabilities (average of monthly balances)	1,477.8	1,579.4
Return on investment, %	5.8	3.5


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Consolidated Financial Statements

Consolidated income statement


EUR million	Note	2024	2023
NET SALES	2.1, 2.2	1,344.8	1,392.9
Other operating income	2.3	28.3	25.6
Materials and services	2.5	-434.3	-487.0
Employee benefit expenses	2.4, 6.2, 6.3	-395.0	-405.4
Other operating expenses	2.5	-215.4	-239.0
Share of results in joint ventures	4.7	0.9	0.7
Depreciation, amortisation and impairment losses	2.6, 3.2, 3.3, 4.6	-247.6	-235.9
EBIT		81.8	51.7
Share of results in associated companies	4.7	0.0	-0.6
Financial income	2.7	6.8	8.6
Financial expenses	2.7	-40.3	-39.1
RESULT BEFORE TAXES		48.4	20.6
Income taxes	2.8	-7.8	-16.5
RESULT FOR THE PERIOD		40.6	4.1

Result attributable to:
Equity holders of the Parent Company		40.5	3.3
Non-controlling interests		0.1	0.8

Earnings per share for result attributable to the equity holders of the Parent Company:	2.9
Earnings per share, EUR		0.19	-0.03
Diluted earnings per share, EUR		0.19	-0.03

Statement of comprehensive income


EUR million	2024	2023
Result for the period	40.6	4.1
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Change in translation differences	-0.4	1.7
Items that will not be reclassified to profit or loss
Defined benefit plans	4.8	15.7
Income tax related to defined benefit plans	-1.0	-3.2
Other comprehensive income for the period, net of tax	3.5	14.2
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	44.1	18.3

Total comprehensive income attributable to:
Equity holders of the Parent Company	44.0	17.5
Non-controlling interests	0.1	0.8


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Consolidated balance sheet


EUR million	Note	31 Dec 2024	31 Dec 2023
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	2.3, 2.5, 3.3	37.4	40.3
Right-of-use assets	3.3	123.1	144.2
Investment property	2.3, 2.5, 4.6	2.9	2.9
Goodwill	3.2	809.8	812.2
Other intangible assets	3.2	646.1	720.5
Equity-accounted investees	4.7	3.5	3.6
Other investments	4.8	2.9	2.8
Deferred tax receivables	2.8	3.8	5.5
Non-current receivables	4.2, 4.9	32.6	31.4
NON-CURRENT ASSETS, TOTAL		1,662.2	1,763.4

CURRENT ASSETS
Inventories	4.1	45.0	53.5
Income tax receivables		8.2	13.9
Contract assets	2.2	0.9	0.5
Trade and other receivables	4.3	141.7	139.4
Cash and cash equivalents	5.3	21.1	65.9
CURRENT ASSETS, TOTAL		216.9	273.2

ASSETS, TOTAL		1,879.1	2,036.6


EUR million	Note	31 Dec 2024	31 Dec 2023
EQUITY AND LIABILITIES
EQUITY	5.4, 6.2
Share capital		71.3	71.3
Treasury shares		-3.0	-4.1
Fund for invested unrestricted equity		209.8	209.8
Translation differences		-16.0	-15.7
Retained earnings		359.4	386.5
Total equity attributable to the equity holders of the Parent Company		621.4	647.7
Hybrid bond		149.1	149.1
Non-controlling interests		1.1	2.6
EQUITY, TOTAL		771.7	799.4
NON-CURRENT LIABILITIES
Deferred tax liabilities	2.8	100.1	116.0
Pension obligations	4.9	2.7	3.4
Provisions	4.4	4.5	2.0
Financial liabilities	5.1	367.8	249.4
Lease liabilities	5.1	104.1	124.8
Contract liabilities	2.2	1.1	0.8
Trade and other payables	4.5	2.7	2.5
NON-CURRENT LIABILITIES, TOTAL		583.0	498.9

CURRENT LIABILITIES
Provisions	4.4	5.7	12.3
Financial liabilities	5.1	88.0	301.4
Lease liabilities	5.1	29.7	30.0
Income tax liabilities		1.2	0.6
Contract liabilities	2.2	160.4	151.9
Trade and other payables	4.5	239.4	242.1
CURRENT LIABILITIES, TOTAL		524.4	738.3

LIABILITIES, TOTAL		1,107.4	1,237.2

EQUITY AND LIABILITIES, TOTAL		1,879.1	2,036.6


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Changes in consolidated equity


		Equity attributable to the equity holders of the Parent Company
EUR million	Note	Share capital	Treasury shares	Fund for invested unrestricted equity	Translation differences	Retained earnings	Total	Hybrid bond	Non- controlling interests	Total
Equity at 1 Jan 2023	5.4	71.3	-5.2	209.8	-17.3	436.5	695.1		7.0	702.1
Result for the period						3.3	3.3		0.8	4.1
Other comprehensive income					1.7	12.5	14.2			14.2
Total comprehensive income					1.7	15.8	17.5		0.8	18.3
Share-based compensation	6.2					3.4	3.4			3.4
Shares delivered	6.2		1.1			-1.1
Dividends paid						-60.4	-60.4		-0.7	-61.1
Total transactions with owners of the Company			1.1			-58.1	-57.0		-0.7	-57.7
Acquisitions and other changes in non-controlling interest						1.7	1.7		-4.5	-2.8
Total change in ownership interest						1.7	1.7		-4.5	-2.8
Issuance of hybrid bond (net of issuance costs)								149.1		149.1
Interest on hybrid bond						-9.6	-9.6			-9.6
Equity at 31 Dec 2023		71.3	-4.1	209.8	-15.7	386.5	647.7	149.1	2.6	799.4


Equity at 1 Jan 2024	5.4	71.3	-4.1	209.8	-15.7	386.5	647.7	149.1	2.6	799.4
Result for the period						40.5	40.5		0.1	40.6
Other comprehensive income					-0.4	3.9	3.5			3.5
Total comprehensive income					-0.4	44.3	44.0		0.1	44.1
Purchase of treasury shares			-1.9				-1.9			-1.9
Share-based compensation	6.2					1.7	1.7			1.7
Shares delivered	6.2		3.0			-3.0
Dividends paid						-60.5	-60.5			-60.5
Total transactions with owners of the Company			1.1			-61.8	-60.7			-60.7
Acquisitions and other changes in non-controlling interest									-1.5	-1.5
Total change in ownership interest									-1.5	-1.5
Interest on hybrid bond						-9.6	-9.6			-9.6
Equity at 31 Dec 2024		71.3	-3.0	209.8	-16.0	359.4	621.4	149.1	1.1	771.7


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Consolidated cash flow statement


EUR million	Note	2024	2023
OPERATIONS
Result for the period		40.6	4.1
Adjustments
Income taxes	2.8	7.8	16.5
Financial expenses	2.7	40.3	39.1
Financial income	2.7	-6.8	-8.6
Share of results in equity-accounted investees	4.7	-0.9	-0.1
Depreciation, amortisation and impairment losses		247.6	235.9
Gains/losses on sales of non-current assets		-6.6	-6.0
Other adjustments		6.0	7.3
Adjustments total		287.3	284.1
Change in working capital
Change in trade and other receivables		-6.8	38.6
Change in inventories		7.5	14.0
Change in trade and other payables, and provisions		7.5	-4.2
Acquisitions of broadcasting rights, prepublication costs and rental books		-102.9	-128.9
Dividends received		1.0	0.6
Interest paid		-35.0	-30.1
Other financial items		-2.1	3.7
Taxes paid		-14.1	-33.6
CASH FLOW FROM OPERATIONS		183.0	148.2

INVESTMENTS
Capital expenditure		-37.7	-43.1
Operations acquired	3.1	-0.8	-0.4
Acquisition of other investments			-0.1


EUR million	Note	2024	2023
Proceeds from sale of tangible and intangible assets		3.0	9.3
Operations sold	3.1	5.6	3.5
Sales of other investments		0.0
Loans granted		0.0	0.0
Interest received		2.1	2.2
CASH FLOW FROM INVESTMENTS		-27.8	-28.5

CASH FLOW BEFORE FINANCING		155.2	119.6

FINANCING
Proceeds from issue of hybrid bond (net of issuance costs)			148.9
Purchase of treasury shares		-1.9
Change in loans with short maturity	5.1	37.4	-69.7
Drawings of other loans	5.1	249.2	0.6
Repayments of other loans	5.1	-380.3	-76.2
Payment of lease liabilities	5.1	-31.9	-31.1
Acquisitions of non-controlling interests	3.1		-7.1
Interest paid on hybrid bond		-12.0
Dividends paid		-60.5	-61.1
CASH FLOW FROM FINANCING		-199.9	-95.8

Change in cash and cash equivalents according to cash flow statement		-44.7	23.9
Effect of exchange rate differences on cash and cash equivalents		0.0	0.3
Net increase(+)/decrease(-) in cash and cash equivalents		-44.7	24.1
Cash and cash equivalents at 1 Jan		65.1	41.0
Cash and cash equivalents at 31 Dec	5.3	20.5	65.1


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Notes to the Consolidated Financial Statements


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1. Accounting policies for Consolidated Financial Statements

1.1 Corporate information

Sanoma is a learning and media company. In 2024, Sanoma Group included two operating segments which are its two

strategic business units (SBU), Sanoma Learning and Sanoma Media Finland. This is aligned with the way Sanoma manages

the businesses. Sanoma Learning is one of the global leaders in K12 education serving about 25 million students in 12

countries. Its learning products and services enable teachers to develop the talents of every child to reach their potential.

Sanoma Learning offers printed and digital learning materials as well as digital learning and teaching platforms for K12, i.e.,

primary, secondary and vocational education, and it aims to grow the business. Sanoma Learning develops its methodologies

based on deep teacher and student insight and truly understanding their individual needs. By combining educational

technologies and pedagogical expertise, Sanoma Learning creates learning products and services with the highest learning

impact. Sanoma Media Finland is the leading cross-media company in Finland, reaching 96% of all Finns weekly. It provides

information, experiences, inspiration and entertainment through multiple media platforms: newspapers, TV, radio, events,

magazines, online and mobile channels. Sanoma Media Finland has leading brands and services, like Helsingin Sanomat, Ilta-

Sanomat, Aamulehti, Me Naiset, Aku Ankka, Nelonen, Ruutu, Supla and Radio Suomipop. For advertisers, it is a trusted

partner with insight, impact and reach.

Sanoma Corporation, the Parent of Sanoma Group, is a public limited company and its share is listed on the Nasdaq Helsinki.

The Parent Company is domiciled in Helsinki, Finland and its registered office is Töölönlahdenkatu 2, 00100 Helsinki, Finland.

On 25 March 2025, Sanoma’s Board of Directors approved these financial statements to be disclosed.

Copies of the Consolidated Financial Statements are available on Sanoma’s website or from the Parent Company’s head

office.

1.2 Basis of preparation of financial statements

Sanoma has prepared its Consolidated Financial Statements in accordance with the IFRS Accounting Standards as adopted

by the European Union while adhering to related IAS and IFRS standards, effective at 31 December 2024, as well as SIC and

IFRIC interpretations. IFRS refers to the approved standards and their interpretations applicable within the EU under the

Finnish Accounting Act and its regulations in accordance with European Union Regulation No. 1606/2002. The notes to the

consolidated financial statements are in accordance with Finnish Accounting Standards and the Finnish Limited Liability

Companies Act.

Financial statements are presented in millions of euros, based on historical cost conventions unless otherwise stated in the

accounting policies. All figures have been rounded and consequently the sum of individual figures can deviate from the

presented sum figure. Key figures have been calculated using exact figures.

1.3 Accounting policies

Management judgement in applying the most significant accounting policies and

other key sources of estimation uncertainty

Preparing the financial statements in accordance with IFRS requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial

statements, and the reported amounts of income and expenses during the reporting period. During the preparation of the

financial statements, such estimates were used when making calculations for impairment testing of goodwill, allocating the

acquisition cost of acquired businesses and determining the estimated useful lives and depreciation methods for property,

plant and equipment and amortisation methods for broadcasting rights, prepublication rights and other intangible assets. In

addition, management judgement is used when determining the valuation of deferred taxes, defined benefit pension assets

and pension obligations and provisions. The assumptions are derived from external sources wherever available. In case of

high dependency on assumptions, sensitivity analyses are performed to determine the impact on carrying amounts. Although

these estimates are based on the management’s best knowledge of current events and actions, actual results may ultimately

differ from these estimates.

Impairment testing is discussed later in the accounting policies and notes to the financial statements. Other uncertainties

related to management judgement are presented, as applicable, in the relevant notes.

Consolidation principles

The Consolidated Financial Statements are prepared by consolidating the Parent Company’s and its subsidiaries’ income

statements, comprehensive income statements, balance sheets, cash flow statements and notes to the financial statements.

Prior to consolidation, the Group companies’ financial statements are adjusted, if necessary, to ensure consistency with the

Group’s accounting policies.

The Consolidated Financial Statements include the Parent Company Sanoma Corporation and companies in which the Parent

Company has control. Control means that the Group is exposed to, or has rights to, variable returns from its involvement with

the Company and has the ability to affect those returns through its power over the Company. Intra-group shareholdings are

eliminated using the acquisition method. In cases where the Group has an obligation to increase ownership in a subsidiary

and the risks and rewards of ownership have transferred to the Group due to this obligation, the consolidation has taken the

ownership into account in accordance with the obligation.

Companies acquired during the financial year are included in the consolidated financial statements from the date on which

control was transferred to the Group, and divested subsidiaries are consolidated until the date on which said control ceased.

Intra-group transactions, receivables and liabilities, intra-group margins and distribution of profits within the Group are

eliminated in the consolidated financial statements.

Sanoma uses the acquisition method when accounting for business combinations.


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On the date of acquisition, the cost is allocated to the assets and liabilities of the acquired business by recognising them at

their fair value. In business combinations achieved in stages, the interest in the acquired company that was held by the

acquirer before the control was acquired shall be measured at fair value at the date of acquiring control. This value has an

impact on calculating the goodwill from this acquisition and it is presented as a loss or gain in the income statement.

The consideration transferred and the identifiable assets and the liabilities assumed in the business combination are

measured at fair value on the date of acquisition. The acquisition-related costs are expensed excluding the costs to issue debt

or equity securities. The potential contingent purchase price is the consideration paid to the seller after the original

consolidation of the acquired business or the share of paid consideration that the previous owners return to the buyers.

Whether any consideration shall be paid or returned is usually dependent on the performance of the acquired business after

the acquisition. The contingent consideration shall be classified as a liability or as equity. The contingent consideration

classified as a liability is measured at fair value on the acquisition date and subsequently on each balance sheet date.

Changes in the fair value are presented in income statement.

Sanoma Group’s equity-accounted investees include joint ventures and associated companies, which are accounted for using

the equity method. The Group’s share of the strategically important joint ventures’ and associated companies’ result is

disclosed separately in the Group’s operating profit. The Group’s share of the result of other equity-accounted investees is

reported below operating profit. The carrying amount of equity-accounted investees is presented on one line in the balance

sheet and it includes the goodwill originating from those acquisitions. The investments are initially recognised at cost and

adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses and movements in other

comprehensive income of the investee. Dividends received or receivable from associates and joint ventures are recognised as

a reduction in the carrying amount of the investment.

Joint ventures are entities that are controlled jointly based on a contractual agreement by the Group and one or several other

owners.

Associated companies are entities in which the Group has significant influence. Significant influence is assumed to exist when

the Group holds over 20% of the voting rights or when the Group has otherwise obtained significant influence but not control

or joint control over the entity. If Sanoma’s share of the losses from an associated company exceeds the carrying value of the

investment, the investment in the associated company will be recognised at zero value on the balance sheet. Losses

exceeding the carrying amount of investments will not be consolidated unless the Group has been committed to fulfil the

obligations of the associated company.

Profit or loss for the period attributable to equity holders of the Parent Company and to the holders of non-controlling interests

is presented in the income statement. The statement of comprehensive income shows the total comprehensive income

attributable to the equity holders of the Parent Company and to the holders of non-controlling interests. The amount of equity

attributable to holders of non-controlling interests is presented as a separate item on the balance sheet within equity.

Foreign currency items

Items reported in the financial statements of each Group company are recognised using the currency that best reflects the

economic substance of the underlying events and circumstances relevant to that company (the functional currency). The

Consolidated Financial Statements are presented in euros, which is the Parent Company’s functional and presentation

currency.

Foreign currency transactions of the Group entities are translated to the functional currency at the exchange rate quoted on

the transaction date. The monetary assets and liabilities denominated in foreign currencies on the balance sheet are

translated into the functional currency at the exchange rate prevailing on the balance sheet date.

The gains and losses resulting from the foreign currency transactions and translating the monetary items are recognised in

income statement. The exchange rate gains and losses are reported in financial income and expenses.

The income and expense items in the income statement and in the statement of comprehensive income of the non-euro Group

entities (subsidiaries, associated companies and joint ventures) are translated into euros using the monthly average exchange

rates and balance sheets using the exchange rate quoted on the balance sheet date. The profit for the period being translated

into euros by different currency rates in the comprehensive income statement and balance sheet results in a translation

difference in equity. The change in translation difference is recognised in other comprehensive income.

Exchange rate differences resulting from the translation of foreign subsidiaries’ and equity accounted investees’ balance

sheets are recognised under shareholders’ equity. When a foreign entity is disposed of, in whole or in part, cumulative

translation differences are recognised in the income statement as part of the gain or loss on disposal.

During the reporting year or preceding financial year, the Group did not have subsidiaries in hyperinflationary countries.

Government grants

Grants from the government or other similar public entities that become receivable as compensation for expenses already

incurred are recognised in the income statement on the period on which the Company complies with the attached conditions.

These government grants are reported in other operating income in income statement. Government grants related to the

purchase of property, plant and equipment or intangible assets are recognised as a reduction of the asset’s book value and

credited to the income statement over the asset’s useful life.

Assets held for sale and discontinued operations

Assets are classified as held for sale if their carrying amount is recovered principally through a sale rather than through

continuing use and a sale is considered highly probable. Such assets are stated at the lower of carrying amount and fair value

less cost of disposal. Non-current assets held for sale are no longer depreciated. When equity-accounted investees meet the

criteria to be classified as held for sale, equity accounting ceases at the time of reclassification.

Operations are classified as discontinued operations in case a component of an entity has either been disposed of, or is

classified as held for sale, and:


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■ it represents a separate major line of business or geographical area of operations,

■ is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or

■ is a subsidiary acquired exclusively with a view to resale.

A component of an entity is defined as operations and cash flows that can be clearly distinguished, operationally and for

financial reporting purposes, from the rest of the entity.

The result for the period of discontinued operations is presented as a separate item in the consolidated income statement.

Goodwill and other intangible assets

Acquired subsidiaries are consolidated using the acquisition method, whereby the cost is allocated to the acquired assets and

liabilities assumed at their fair value on the date of acquisition. Goodwill represents the excess of the cost over the fair value of

the acquired company’s net assets. Goodwill reflects e.g., expected future synergies resulting from acquisitions.

Goodwill is not amortised but it is tested for impairment annually or if there are some triggering events.

The identifiable intangible assets are recognised separately from goodwill if the assets fulfil the related recognition criteria –

i.e., they are identifiable, or based on contractual or other legal rights- and if their fair value can be reliably measured.

Intangible assets are initially measured at cost and amortised over their expected useful lives. In Sanoma, expected useful

lives can be determined for intangible rights. With regard to the acquisition of new assets, the Group assesses the expected

useful life of the intangible right, for example, in light of historical data and market position, and determines the useful life on

the basis of the best knowledge available on the assessment date.

The Group recognises the cost of broadcasting rights to TV programmes under intangible assets and their cost is amortised

based on broadcasting runs. The prepublication costs of learning materials and solutions are recognised in intangible assets

and amortised over the useful lives. In cash flow, acquisitions of broadcasting rights and prepublication costs are part of cash

flow from operations.

The known or estimated amortisation periods for intangible assets with finite useful lives are:

■ Publishing rights2–20 years

■ Software licenses 2–10 years

■ Copy- and trademark rights 2–20 years

■ Customer relationships 3–20 years

■ Software projects3–10 years

■ Online sites 3–10 years

■ Prepublication costs 3–8 years

Amortisation is calculated using the straight-line method. Recognising amortisation is discontinued when an intangible asset is

classified as held for sale.

Goodwill and other intangible assets are described in more detail in Note 3.2.

Impairment testing

The carrying amounts of assets are reviewed whenever there is any indication of impairment. A cash-generating unit (CGU) is

the smallest identifiable group of assets that generates cash flows that are largely independent of the cash flows from other

assets or groups of assets. Those CGUs for which goodwill has been allocated are tested for impairment at least once a year.

Intangible assets with indefinite useful lives are also tested at least annually.

The test assesses the asset’s recoverable amount, which is the higher of either the asset’s fair value less cost of disposal or

value in use based on future cash flows. In Sanoma Group, impairment tests are principally carried out on a cash flow basis by

determining the present value of estimated future cash flows of each CGU. If the carrying amount of the CGU exceeds its

recoverable amount, an impairment loss is recorded in the income statement. Primarily, the impairment loss is deducted from

the goodwill of the cash-generating unit and after that it is deducted proportionally from other non-current assets of the cash-

generating unit. The useful life of the asset is re-estimated when an impairment loss is recognised.

If the recoverable amount of an intangible asset has changed due to a change in the key expectations, previously recognised

impairment losses are reversed. However, impairment losses are not reversed beyond the amount the asset had before

recognising impairment losses. Impairment losses recognised for goodwill are not reversed under any circumstances.

Impairment testing is described in more detail in Note 3.2.

Property, plant and equipment

Property, plant and equipment (PPE) are measured at cost less accumulated depreciation and any impairment losses. The

cost includes any costs directly attributable to acquiring the item of PPE. Any subsequent costs are included in the carrying

value of the item of PPE only if it is probable that it will generate future benefits for the Group and that the cost of the asset

can be measured reliably. Lease premises’ renovation expenses are treated as other tangible assets in the consolidated

balance sheet. Ordinary repairs and maintenance costs are expensed as incurred.

The depreciation periods of PPE are based on the estimated useful lives and are:

■ Buildings and structures 5–50 years

■ Machinery and equipment 2–20 years

■ Rental books2–5 years

■ Other tangible assets 3–10 years


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Depreciation is calculated using the straight-line method. Land areas are not depreciated. Recognising depreciation is

discontinued when the PPE is classified as held for sale.

The residual value and the useful life of an asset are reviewed at least at the end of each financial year and if necessary, they

are adjusted to reflect the changes in expectations of financial benefits.

Gains and losses from disposing or selling items of PPE are recognised in the income statement and they are reported in

other operating income or expenses.

Investment property

A property is classified as investment property if the Group mainly holds the property to earn rental yields or for capital

appreciation. Investment property is initially measured at cost and presented as a separate item on the balance sheet.

Investment properties include buildings, land and investments in shares of property and housing companies not in Sanoma’s

own use. Based on their nature, such shareholdings are divided into land or buildings.

The fair value of investment properties is presented in the notes to the consolidated financial statements. Fair values are

determined by using the yield value method or using the information on equal real estate business transactions in the market.

Also, an outside surveyor has been used when determining the fair value. The risk of the yield value method takes into

account, among others, the term of the lease period, other conditions of the lease, the location of the premises and the nature

of releasability as well as the development of environment and area planning.

Leases

At inception of a contract, an entity assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if

the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Leases of property, plant and equipment, where the Group is the lessee, are recognised as assets and liabilities for the lease

term. The cost of right-of-use asset comprises the amount of initial measurement of the lease liability, any lease payments

made at or before the commencement date, less any lease incentives and any initial direct costs incurred by the lessee. The

asset is depreciated during the lease term or, if shorter, during its useful life.

In leases of premises there are extension and termination options. The entity considers all relevant facts and circumstances

that create an economic incentive for the lessee to exercise, or not to exercise the option, including any expected changes in

facts and circumstances from the commencement date until the exercise date of the option. A lease term is reassessed if

there’s a significant event or change in circumstances that is within the control of the lessee and affects whether the lessee is

reasonably certain to exercise the option not previously included in the lease term or not to exercise an option previously

included in the lease term.

The lease liability is valued at the present value of the unpaid rents at the valuation date (commencement date of the lease).

Rental costs include fixed rents and variable rents that depend on changes in the index or price level specified in the

agreement. Sanoma applies the practical expedient and will not separate non-lease components from lease components and

will instead account for each lease component and any associated non-lease components as a single lease component. Other

variable rents included in the lease are treated as an expense for the period. Rents are discounted at the internal rate of the

lease. If the internal rate is not readily determinable, the company’s additional credit interest rate is used.

In income statement, leasing costs are classified as depreciation and interest. Lease payments are apportioned between the

interest expenses and the repayment of lease liabilities. The finance cost is charged to profit or loss over the lease period so

as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. In cash flow

statement, the cash payments for the interest portion of the lease liability are presented in cash flow from operations. Cash

payments for the principal portion of the lease liability are shown in cash flow from financing. The right-of-use assets and lease

liabilities are presented separately in the balance sheet. The cash payments for the principal portion of the lease liability, which

are paid in the next 12 months, are shown in current lease liabilities in balance sheet.

Sanoma applies the exemption for short-term leases (lease term 12 months or shorter than 12 months) and for leases for

which the underlying asset is of low value and continues to recognise those leases on a straight-line basis as an expense. In

cash flow statement, short-term lease payments and payments for leases of low-value assets are included in cash flow from

operations.

The lease payments received for operating leases are shown under other operating income. The Group has no leases

classified as finance leases in which it is a lessor.

Inventories

Inventories are stated at the lower of cost and net realisable value, using the average cost method. The cost of finished goods

and work in progress includes the purchase price, direct production wages, other direct production costs and fixed production

overheads to their substantial extent. Net realisable value is the estimated selling price, received as part of the normal course

of business, less estimated costs necessary to complete the product and make the sale.

Financial assets

The Group’s financial assets are classified as subsequently measured at amortised cost and at fair value through profit or loss.

The classification of financial assets is based on the business model in which a financial asset is managed and its contractual

cash flow characteristics. Sanoma has only one business model for debt instruments which is a business model whose

objective is to hold assets in order to collect contractual cash flows. Financial assets are not reclassified subsequently to their

initial recognition unless the Group changes its business model for managing financial assets. All equity instruments are

measured at fair value.

Transaction costs are included in the initial carrying value of the financial assets if the item is not classified as a financial asset

at fair value through profit or loss. Derecognition of financial assets takes place when Sanoma has lost the contractual right to

the cash flows from the asset or it has transferred the essential risks and benefits to third parties.

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and

interest are measured at amortised cost. In Sanoma Group, financial assets measured at amortised cost include loan

receivables, trade receivables and cash. According to IFRS 9, an entity shall recognise a loss allowance for expected credit

losses on a financial asset measured at amortised cost. Sanoma has adopted the general expected credit loss model for debt


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instruments carried at amortised cost. For trade receivables, Sanoma applies the simplified approach permitted by IFRS 9,

which requires expected lifetime credit losses to be recognised from initial recognition of the receivable. Sanoma uses a

provision matrix as a practical expedient for measuring expected credit losses for trade receivables. Loss rates are defined

separately for different geographic regions, type of business and types of customers (B2B and B2C). Loss rates are based on

past information on actual credit loss experience, adjusted by current information and future expectations on economic

conditions where deemed necessary.

Assets that do not meet the criteria for amortised cost are measured at fair value through profit or loss. A gain or loss on an

investment that is subsequently measured at fair value through profit or loss is recognised in the financial items in the income

statement. In Sanoma Group financial assets measured at fair value through profit or loss include other equity investments

and derivatives.

Cash and cash equivalents

Cash and cash equivalents include bank accounts and short-term deposits with a maturity of less than three months. Bank

overdrafts are shown under current financial liabilities on the balance sheet.

Financial liabilities

Sanoma’s financial liabilities are classified either as financial liabilities at amortised cost or as financial liabilities at fair value

through profit or loss. Financial liabilities are classified as short-term liabilities unless the Group has an unconditional right to

postpone the settling of the liability at least with 12 months from the end of the reporting period. The right to postpone the

settlement must have substance and exist at the end of the reporting period and the classification of the liability must be

unaffected by the likelihood that the company will exercise that right. If the Group is required to comply with covenants on or

before the end of the reporting period, these covenants will affect whether such a right exists at the end of the reporting period.

Such a covenant affects whether the right exists at the end of the reporting period even if compliance with the covenant is

assessed only after the reporting period.

The financial liability or a part of it can be derecognised only when the liability has ceased to exist, meaning that the

obligations identified by the agreement have been fulfilled, abolished or expired. If the Group issues a new debt instrument

and uses the received reserves to repurchase an earlier issued debt instrument (whole or part) with not substantially different

terms, any costs or fees incurred adjust the carrying amount of the new liability and are amortised over the remaining term of

the issued instrument. A gain or loss arising from the difference in contractual cash flows is recognised in the income

statement at the time of the modification.

The financial debt of Sanoma Group is classified as financial liabilities at amortised cost which are initially recognised at fair

value including the transaction costs directly attributable to the acquisition of the financial liability. Subsequently, these

financial liabilities are measured at amortised cost using the effective interest method.

In Sanoma Group, financial liabilities at fair value through profit or loss include derivatives that do not comply with the

conditions for hedge accounting. Both the unrealised and realised gains and losses arising from the changes in fair values of

the derivatives are recognised in the financial items in the income statement on the period the changes arise.

Hybrid bond

A hybrid bond is a bond that is subordinated to the Group’s other debt obligations and treated as equity in Sanoma’s

Consolidated Financial Statements prepared in accordance with the IFRS. Paying the interest on the hybrid bond is at the

discretion of the Company, however an obligation to pay the interest arises if the Company decides to distribute dividends.

Unpaid interest accumulates. A hybrid bond does not confer to its holders the rights of a shareholder and does not dilute the

holdings of the current shareholders.

Derivatives

Sanoma Group may use derivative instruments, such as forward foreign exchange contracts and interest rate swaps, in order

to hedge against fluctuations in foreign exchange or interest rates. The Group does not apply hedge accounting.

Derivatives are initially recognised at fair value on the date of entering to a hedging agreement and they are subsequently

measured at their fair value on each balance sheet date. The fair value of foreign exchange contracts is based on the contract

forward rates in effect on the balance sheet date. Derivative contracts are shown in other current receivables and liabilities on

the balance sheet. Both the unrealised and realised gains and losses arising from changes in fair values of the derivatives are

recognised in the financial items in the income statement on the period the changes arise.

Risk management principles of financial risks are presented in more detail in Note 5.2.

Fair value hierarchy

Financial assets and liabilities measured at fair value are divided into three levels in the fair value hierarchy. In level 1, fair

values are based on quoted prices in active markets. In level 2, fair values are based on valuation models for which all inputs

are observable, either directly or indirectly. For assets and liabilities in level 3, the fair values are based on input data that is

not based on observable market data.

Income taxes and other taxes

The income tax charge presented in the income statement is based on taxable profit for the financial period, adjustments for

taxes from previous periods and changes in deferred taxes. Tax on taxable profit for the period is based on the tax rate and

legislation effective in each country. Income taxes related to transactions impacting the profit or loss for the period are

recognised in the income statement. Tax related to transactions or other items recognised in other comprehensive income or

directly in equity, are recognised accordingly in other comprehensive income or directly in equity.

Deferred tax assets and liabilities are recorded principally on temporary differences arising between the tax bases of assets

and liabilities and their carrying amounts, using tax rates effective on the balance sheet date. Changes in the applicable tax

rate are recorded as changes in deferred tax in the income statement. Deferred tax assets are recognised to the extent that it

appears probable that future taxable profit will be available against which the deductible temporary difference can be utilised.

No deferred tax liability on undistributed retained earnings of subsidiaries has been recognised in that respect, as such

distribution is not probable within the foreseeable future. The most significant temporary differences relate to depreciation


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differences, defined benefit pension plans, subsidiaries’ tax losses carried forward and the fair value measurement of assets

acquired in business combinations.

The amount of current and deferred tax payable or receivable is the best estimate of the tax amount expected to be paid or

received that reflects uncertainty related to income taxes, if any. The recorded receivable and payable amounts are adjusted

where it is not considered probable that a tax authority will accept an uncertain tax treatment used by the Group in an income

tax filing. The amounts recorded are based on the most likely amount or the expected value, depending on which method the

Group expects to better predict the resolution of the uncertainty.

Deferred tax assets and deferred tax liabilities are offset in the balance sheet if there is a legal right to set off current tax

assets against liabilities and they relate to the same tax authority.

If Sanoma has been the subject of tax adjustment claims which it considers unjustified, it considers a possible payment

relating to claims to be deposits with the tax authority if they give the Company a right to obtain future economic benefits,

either by receiving a cash refund or by using the payment to settle the tax liability. Consequently, items paid in relation to these

claims are reported as receivables in the balance sheet during the period when the legal proceedings are ongoing and the

case has not been finally settled.

Sanoma applies the temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional

implementation of the GloBE (Global Anti-Base Erosion)-rules. For this reason, the entity does not recognise or disclose

deferred taxes arising from Pillar Two rules. The Group’s exposure to Pillar Two regulations and income taxes arising from that

legislation are however presented on the Group’s financial statements.

Provisions

A provision is recognised when the Group has a present legal or constructive obligation as a result of past events and it is

probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of this

obligation can be made.

A restructuring provision is recognised when the Group has prepared a detailed restructuring plan and started to implement

that plan or announced the matter.

Share-based payments

The share-based incentive plans introduced at Sanoma offer the Group’s management an opportunity to receive Sanoma

shares after a vesting period of two to three years, provided that the conditions set for receiving the shares are met. Shares in

the Restricted Share Plans are delivered to the participants provided that their employment with Sanoma continues

uninterrupted throughout the duration of the plan until the shares are delivered. In addition to the continuous employment

condition, vesting of the Performance Shares is subject to meeting (partially or fully) the Group’s performance targets set by

the Board for annually commencing new plans.

The possible reward is paid as a combination of shares and cash. The cash component is dedicated to cover reward-related

taxes and tax-related costs.

Share-based payments that are settled net in shares after withholding taxes are accounted for in full as equity-settled

arrangements despite the fact that the employer pays in cash the taxes related to the rewards on behalf of the participants.

The fair value for the equity settled portion has been determined at grant using the fair value of Sanoma share as of the grant

date less the expected dividends paid before possible share delivery. The fair value for the cash settled portion is remeasured

at each reporting date until the possible reward payment. The fair value of the liability will thus change in accordance with

Sanoma’s share price. Liabilities arising from share-based payments represent an estimate of the employers’ social costs

relating to the payable rewards. The fair value is charged to personnel expenses until vesting.

A more detailed description of the share-based payments is provided in Note 6.2.

Revenue recognition

Revenue is measured based on the consideration specified in a contract with a customer and excludes the amounts collected

on behalf of third parties. The Group recognises revenue when it transfers control over a product or service to a customer.

Revenue recognition is described in more detail in Note 2.2.

Research and development expenditure

Research expenditure is expensed as incurred.

Development expenditure refers to costs that an entity incurs with the aim of developing new products or services for sale, or

fundamentally improving the features of its existing products or services, as well as extending its business. Development

expenses are mainly incurred before the entity begins to make use of the new product/service for commercial or profitable

purposes. Development expenditure is either expensed as incurred or recorded as other intangible asset if it meets the

recognition criteria.

Pensions

The Group’s pension schemes in different countries are arranged in accordance with local requirements and legislation.

Pension schemes are classified into two categories: defined contribution plans and defined benefit plans. The Group has both

defined contribution and defined benefit plans and the related pension cover is managed by both pension funds and insurance

companies.

Contributions under defined contribution plans are expensed as incurred, and once they are paid to insurance companies the

Group has no obligation to pay further contributions. All other post-employment benefit plans are regarded as defined benefit

plans.

The present value of Sanoma Group’s obligation of defined benefit plans is determined separately for each scheme using the

projected unit credit method. Within the defined benefit plan, pension obligations or pension assets represent the present

value of future pension payments less the fair value of the plan assets and potential past service cost. The present value of

the defined benefit obligation is determined by using discount interest rates that are based on high-quality corporate bonds or

government bonds whose duration essentially corresponds with the duration of the pension obligation. Pension expenses


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under the defined benefit plan are recognised as expenses for the remaining working lives of the employees within the plan

based on the calculations of authorised actuaries.

Remeasurements of the net defined benefit liability are recognised immediately in other comprehensive income.

1.4 Adoption of new and amended IFRS standards and IFRIC

interpretations

The Group has applied the same accounting policies as in the Financial Statements 2023, except for the effect of changes

required by the adoption of the following new standards, interpretations and amendments to standards and interpretations as

of 1 January 2024:

■ Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current and

Non-current Liabilities with Covenants. The amendments specify requirements related to the classification of liabilities as

current or non-current items and require additional disclosure on loans which contain covenants. The amendments have

no material impact on the Group’s financial statements.

IASB and IFRIC have issued certain new standards and interpretations, which are not yet effective, and the Group has not

applied these requirements before the effective date:

■ IFRS 18 Presentation and Disclosure in Financial Statements: the Group is currently working to identify all impacts the

standard will have on the Group’s financial statements and notes to the financial statements.


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2. Financial performance

2.1 Operating segments

In 2024, Sanoma Group included two operating segments which are its two strategic business units Sanoma Learning and

Sanoma Media Finland. This is aligned with the way Sanoma manages the businesses.

Learning

Sanoma Learning is one of the global leaders in K12 education, serving about 25 million students in 12 European countries.

Our learning products and services enable teachers to develop the talents of every child to reach their potential. We offer

printed and digital learning materials as well as digital learning and teaching platforms for K12. i.e., primary, secondary and

vocational education, and we aim to continue to grow our business in Europe and beyond. We develop our methodologies

based on deep teacher and student insight and truly understanding their individual needs. By combining our educational

technologies and pedagogical expertise, we create learning products and services with the highest learning impact.

Media Finland

Sanoma Media Finland is the leading cross-media company in Finland, reaching 96% of all Finns weekly. We provide

information, experiences, inspiration and entertainment through multiple media platforms: newspapers, TV, radio, events,

magazines, online and mobile channels. We have leading brands and services, such as Helsingin Sanomat, Ilta-Sanomat,

Aamulehti, Me Naiset, Aku Ankka, Nelonen, Ruutu, Supla and Radio Suomipop. For advertisers, we are a trusted partner with

insight, impact and reach.

Other operations/eliminations

In addition to the Group eliminations, the column other operations/eliminations includes non-core operations, head office

functions and items not allocated to segments.


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Segments 2024


EUR million	Learning	Media Finland	Other operations/ eliminations	Total
External net sales	764.2	580.7		1,344.8
Internal net sales		0.2	-0.2
NET SALES	764.2	580.9	-0.2	1,344.8
Depreciation, amortisation and impairment losses	-154.7	-91.3	-1.5	-247.6
EBIT	59.1	38.2	-15.4	81.8
OPERATIONAL EBIT EXCL PPA1	146.9	47.5	-14.4	180.0
Share of results in associated companies		0.0		0.0
Financial income			6.8	6.8
Financial expenses			-40.3	-40.3
RESULT BEFORE TAXES				48.4
Income taxes				-7.8
RESULT FOR THE PERIOD				40.6
Capital expenditure	30.3	7.2	0.2	37.7
Goodwill2	868.2	109.3	-167.7	809.8
Equity-accounted investees		3.5		3.5
Segment assets	1,659.7	338.9	-152.5	1,846.0
Other assets				33.1
TOTAL ASSETS				1,879.1
Segment liabilities	257.1	177.6	-18.2	416.5
Other liabilities				690.9
TOTAL LIABILITIES				1,107.4
Free cash flow1	67.4	71.0	7.0	145.3
Average number of employees (full-time equivalents)	2,612	2,109	100	4,820

1 Non-audited.

2 Other operations/eliminations column includes adjustment of goodwill related to legal restructuring of Learning.

Operational EBIT excl. PPA is adjusted by items affecting comparability.


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Segments 2023


EUR million	Learning	Media Finland	Other operations/ eliminations	Total
External net sales	795.2	597.7		1,392.9
Internal net sales	0.0	0.2	-0.2
NET SALES	795.2	597.8	-0.2	1,392.9
Depreciation, amortisation and impairment losses	-132.1	-102.6	-1.2	-235.9
EBIT	70.6	-8.4	-10.5	51.7
OPERATIONAL EBIT EXCL PPA1	148.4	39.8	-12.9	175.4
Share of results in associated companies		-0.6		-0.6
Financial income			8.6	8.6
Financial expenses			-39.1	-39.1
RESULT BEFORE TAXES				20.6
Income taxes				-16.5
RESULT FOR THE PERIOD				4.1
Capital expenditure	33.8	8.6	0.7	43.1
Goodwill2	868.3	111.7	-167.7	812.2
Equity-accounted investees		3.6		3.6
Segment assets	1,745.2	376.5	-170.5	1,951.3
Other assets				85.3
TOTAL ASSETS				2,036.6
Segment liabilities	267.2	183.9	-36.1	415.0
Other liabilities				822.2
TOTAL LIABILITIES				1,237.2
Free cash flow1	46.3	37.7	21.1	105.1
Average number of employees (full-time equivalents)	2,849	2,144	125	5,119

1 Non-audited.

2 Other operations/eliminations column includes adjustment of goodwill related to legal restructuring of Learning.

Operational EBIT excl. PPA is adjusted by items affecting comparability.


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The accounting policies for segment reporting do not differ from the accounting policies for the Consolidated Financial

Statements. The decisions concerning assessing the performance of operating segments and allocating resources to the

segments are based on segments’ EBIT and operational EBIT excl. PPA. Sanoma’s President and CEO acts as the chief

operating decision-maker. Segment assets do not include cash and cash equivalents, interest-bearing receivables, tax

receivables and deferred tax receivables. Segment liabilities do not include financial liabilities, tax liabilities and deferred tax

liabilities. Capital expenditure includes investments in tangible and intangible assets. Transactions between segments are

based on market prices.

Information about geographical areas 2024


EUR million	Finland	The Netherlands	Other EU countries	Other countries	Total
External net sales	639.8	220.8	472.2	12.0	1,344.8
Non-current assets	432.3	484.4	698.0	11.9	1,626.6

Information about geographical areas 2023


EUR million	Finland	The Netherlands	Other EU countries	Other countries	Total
External net sales	658.4	218.7	502.1	13.7	1,392.9
Non-current assets	465.5	530.5	718.2	14.2	1,728.3

External net sales and non-current assets are reported based on where the company is domiciled. Non-current assets do not

include financial instruments, deferred tax receivables and assets related to defined benefit plans.

The Group’s revenues from transactions with any single external customer do not amount to 10% or more of the Group’s net

sales.


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2.2 Net sales

Nature of goods and services

The following is a description of principal activities, separated by operating segments, from which the Group generates its

revenue. Sanoma Group includes two operating segments, which are its strategic business units Sanoma Learning and

Sanoma Media Finland. For more detailed information about operating segments, see Note 2.1.

Learning segment

Sanoma Learning is one of the global leaders in K12 education, serving about 25 million students in 12 European countries.

Our learning products and services enable teachers to develop the talents of every child to reach their potential. We offer

printed and digital learning content as well as digital learning and teaching platforms for K12, i.e., primary, secondary and

vocational education, and we aim to continue to grow our business in Europe and beyond. We develop our methodologies

based on deep teacher and student insight and truly understanding their individual needs. By combining our educational

technologies and pedagogical expertise, we create learning products and services with the highest learning impact.

Sales are primarily generated through the sale of educational books and granting access to online learning platforms. In most

cases, customer contracts include a combination of books, CDs and access to platforms. In these cases, educational books

and the access to the online platform are considered distinct and therefore identified as separate performance obligations. The

consideration is allocated between the separate performance obligations based on their stand-alone selling prices. The stand-

alone selling prices are determined based on the list prices at which the Group sells the identifiable products and services. For

items that are not sold separately by the Group, the stand-alone selling prices are either estimated using the adjusted market

assessment approach or by using an expected cost plus a margin approach.


Products and services	Nature of products and services, timing of satisfaction of performance obligations and significant payment terms
Educational books	Educational books include revenue from publishing books for primary, secondary and vocational education. Revenue is recognised when the books are delivered to the customer (point-in-time). Revenue from books with a right of return is presented after deducting the estimated returns. Books are usually billed upon delivery and paid according to the payment terms on the invoices.
Access to online learning platforms	Access to online learning platforms can either be sold separately or in combination with educational books. Revenue of access to online learning platforms is recognised over the period (over-time) the customer has access to the platform (usually during a school year). Access services are usually paid in advance in monthly, quarterly or annual instalments.
Access to online teacher solutions and school management systems	Access to online teacher solutions and school management systems includes revenue of access to online platforms and applications for which revenue is recognised over the period (over-time) that the customer has access to the platform.
Other	Other sales mainly include the physical distribution of learning materials. For learning materials sold, the revenue is recognised when they are delivered to the customer. For rental learning books, revenue is recognised over the period (over-time) that the customer rents the book. Other sales also include consultancy services in testing and assessment activities. This is considered a separate performance obligation which is recognised in revenue over time when the service is delivered. Testing and assessment services are billed and paid on a monthly basis.


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Media Finland segment

Sanoma Media Finland is the leading cross-media company in Finland, reaching 96% of all Finns weekly. We provide

information, experiences, inspiration and entertainment through multiple media platforms: newspapers, TV, radio, events,

magazines, online and mobile channels. We have leading brands and services, such as Helsingin Sanomat, Ilta-Sanomat,

Aamulehti, Me Naiset, Aku Ankka, Nelonen, Ruutu, Supla and Radio Suomipop. For advertisers, we are a trusted partner with

insight, impact and reach.

Sanoma Media Finland principally generates consumer revenue from providing consumer magazines, newspapers, events,

online services and SVOD (Subscription video on demand) and AOD (Audio on demand). Through combining media content

and customer data, advertising revenue is generated by providing successful marketing solutions for our clients. The typical

length of customer contracts is 12 months or less.

Print sales are generated primarily from circulation sales, both subscriptions and single copy sales. In addition, print sales

include advertising sales. Non-print sales are generated from subscriptions for online news, SVOD and AOD as well as

advertising sales generated through TV, VOD, radio, online and mobile channels. Also revenue generated from events (both

consumer income and other B2B revenue) is included in non-print sales.

For each customer contract, the Group accounts for individual performance obligations separately if they are distinct. A

product or service is considered distinct if it is separately identifiable from other promises in the contract and if a customer can

benefit from it on its own. The consideration is allocated between separate performance obligations based on their stand-alone

selling prices. The stand-alone selling prices are determined based on the list prices at which the Group sells the identifiable

products and services. For items that are not sold separately by the Group, the stand-alone selling prices are estimated using

the adjusted market assessment approach.


Products and services	Nature of products and services, timing of satisfaction of performance obligations and significant payment terms
Advertising	Print advertising is generated through classical pages, classified ads (small advertisements categorised by topic) or plus propositions and inserts (flyers, cards, etc.). Revenue recognition is at issue date (point-in-time) of the magazine/newspaper. Revenue is the net price; discounts are subtracted. Discounts can be agency discounts, generic discounts or volume discounts. Advertising services are usually billed and paid on a weekly or monthly basis.
	TV and radio advertising mainly relates to spot advertising for both free-to-air (FTA) channels and video-on- demand (VOD) generated from contracts with media agencies. Revenue is recognised when the commercial is broadcasted (point-in-time). Advertising services are usually billed and paid on a weekly or monthly basis.
	Online and mobile advertising is generated through display sales (e.g., banners and buttons) and non-display sales, which is primarily branded content. Both display and non-display sales are recognised over-time, during the running time of the advertising campaign. Performance-based revenue is generated based on number of clicks and/or fee for leads generated through the Group’s websites (affiliate sales). Performance-based revenue is recognised at a point-in-time. Advertising services are usually billed and paid on a weekly or monthly basis.
Subscription	Magazine and newspaper subscriptions include subscriptions to magazine and newspaper content in print, digital and bundle format. The subscription terms vary from a few months up to more than 12 months. A part of the subscriptions are continuous, and end only when the customer ends them. Revenue is recognised based on publication dates over the contract term (over-time). Contracts are ended after the contract term and renewals are agreed at regular prices, therefore treated as new contracts. New subscriptions are offered at full price or at a discount. Revenue is presented net of the granted discount. When a new subscription is made, the customer may be offered a free premium article. The article is considered a separate performance obligation for which the stand-alone selling price is recognised when the control of the product is transferred to the customer (point-in-time). For subscription bundles (combination of print, online and/or event), the separate products are identified as separate performance obligations. Revenue is recognised based on the issue dates of respective products during the contract term (over-time). Print subscriptions are usually paid in advance in monthly, quarterly or annual instalments.
	Video and audio subscriptions include consumer subscriptions to video-on-demand and audio-on-demand. Revenue is recognised over the length of the subscription term (over-time). Video and audio subscriptions are usually paid in advance in monthly, quarterly or annual instalments.
Single copy	Single copy sales relate to magazines and newspapers sold in kiosks, supermarkets and other retail channels. Retailers have a right of return for unsold copies. Revenue is recognised at the moment the products are delivered to the retailer (point-in-time), taking into account a provision for estimated returns. Single copy sales are usually billed and paid on a weekly or monthly basis.
Other B2C sales	Other B2C sales consist of product sales, income from events (consumer part), newspaper consumer announcements and other consumer income. Revenue is recognised at a point-in-time. Other B2C sales are usually billed and paid on a monthly basis.
Other B2B sales	Other B2B sales include printing sales, income from events (B2B part), licensing, gift cards, service sales, commission sales and distribution sales. Based on the nature of the performance obligations, other B2B sales are recognised both at a point-in-time and over-time. Other B2B are usually billed and paid on a monthly basis.


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Disaggregation of revenue

In the following table, revenue is disaggregated by primary geographical market, major products/services lines and timing of

revenue recognition. The table also includes a reconciliation of the disaggregated revenue by the Group’s two operating

segments. Information on operating segments is presented in Note 2.1.

Disaggregation of revenue 2024


EUR million	Learning	Media Finland	Other operations/ eliminations	Total
Finland	59.4	580.9	-0.2	640.1
The Netherlands	220.8			220.8
Poland	139.2			139.2
Spain	135.6			135.6
Italy	105.5			105.5
Belgium	64.1			64.1
Other companies and eliminations	39.6			39.6
Primary geographical markets	764.2	580.9	-0.2	1,344.8

Learning solutions	634.2			634.2
Advertising		214.8	-0.2	214.6
Subscription		254.3	0.0	254.3
Single copy		37.0		37.0
Other	130.0	74.8	-0.1	204.7
Major product lines/services	764.2	580.9	-0.2	1,344.8

Recognition at a point-in-time	608.3	149.9	-0.2	758.0
Recognition over-time	155.8	431.0		586.8
Timing of revenue recognition	764.2	580.9	-0.2	1,344.8

The revenue per country is based on the location of the entity that generates the revenue.

Disaggregation of revenue 2023


EUR million	Learning	Media Finland	Other operations/ eliminations	Total
Finland	60.9	597.8	-0.2	658.5
The Netherlands	218.7			218.7
Poland	125.7			125.7
Spain	152.4			152.4
Italy	104.7			104.7
Belgium	82.1			82.1
Other companies and eliminations	50.8			50.8
Primary geographical markets	795.2	597.8	-0.2	1,392.9

Learning solutions	660.4		0.0	660.4
Advertising		219.2	-0.1	219.1
Subscription		246.0	0.0	246.0
Single copy		38.3		38.3
Other	134.7	94.3	0.0	229.0
Major product lines/services	795.2	597.8	-0.2	1,392.9

Recognition at a point-in-time	655.5	178.9	-0.2	834.2
Recognition over-time	139.7	419.0		558.7
Timing of revenue recognition	795.2	597.8	-0.2	1,392.9


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Contract balances

The following table provides information about contract assets and contract liabilities from contracts with customers.


	2024		2023
EUR million	Contract assets	Contract liabilities	Contract assets	Contract liabilities
1 Jan	0.5	152.7	0.6	141.9
Revenue recognised that was included in the contract liability at the beginning of the period		-151.9		-139.3
Increases due to cash received, excluding amounts recognised as revenue during the period		160.6		150.2
Transfers from contract assets recognised at the beginning of the period to receivables	-0.5		-0.6
Increase in contract assets due to fulfilled performance obligations not yet invoiced	0.9		0.5
31 Dec	0.9	161.5	0.5	152.7

The contract assets primarily relate to performance obligations that have been fulfilled, but for which invoicing has not yet

taken place. The contract assets are transferred to receivables upon invoicing and therefore becoming unconditional. The

contract liabilities primarily relate to advance considerations received from customers and for which revenue is recognised at

the moment of fulfilling the performance obligation. Contract assets and liabilities relate to customer contracts that are

generally settled within 12 months after inception of the contract, with the exception of customer contracts for digital products

in Sanoma Learning, which are settled between six months to maximum eight years after inception of the contract.

Information on trade receivables is further disclosed in Notes 4.2 and 4.3, and Note 5.2.

Transaction price allocated to remaining performance obligations

The following table includes revenue expected to be recognised in the future related to performance obligations that are

unsatisfied (or partially unsatisfied) at the reporting date.

Unsatisfied performance obligations


EUR million	2025	> 2025	Total
Learning	93.8	1.1	94.8
Media Finland	66.6		66.6
Total	160.4	1.1	161.5

Distribution of net sales between goods and services


EUR million	2024	2023
Sale of goods	787.2	834.0
Rendering of services	557.7	558.9
Total	1,344.8	1,392.9

The sale of goods includes sales of magazines, newspapers and books as well as the sale of other physical items.

Rendering of services consists of advertising sales in magazines, newspapers, TV, radio and online as well as the sales of

online marketplaces. In addition, sales of services include income from renting learning books as well as user fees for

e-learning solutions and databases.


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2.3 Other operating income

Other operating income


EUR million	2024	2023
Gains on sale of property, plant and equipment	1.1	1.5
Gains on sale of Group companies and operations	5.6	1.6
Gains on sale of investment property		2.9
Rental income from investment property	0.1	0.1
Other rental income	5.0	5.3
Government grants	0.3	0.1
Other	16.3	13.8
Total	28.3	25.6

The Group’s other rental income is mostly related to sub-leases.

Other operating income includes EUR 3.7 million (2023: 4.3) reprography fee income and EUR 2.5 million (2023: 2.8) income

related to alternative payment methods.

More information on investment property can be found in Note 4.6.

2.4 Employee benefit expenses

Employee benefit expenses


EUR million	2024	2023
Wages, salaries and fees	-323.7	-328.5
Equity-settled share-based payments	-2.5	-4.4
Pension costs, defined contribution plans	-38.8	-37.6
Pension costs, defined benefit plans	-0.8	-1.8
Other social expenses	-29.2	-33.2
Total	-395.0	-405.4

Wages, salaries and other compensations for key management are presented in Note 6.3 and share-based payments are

described in Note 6.2. Post employment benefits are described in Note 4.9.


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2.5 Materials and services and other operating expenses

Materials and services


EUR million	2024	2023
Paper costs	-35.4	-54.2
Raw materials and supplies	-92.2	-112.7
Purchased transport and distribution service	-91.8	-98.2
Purchased printing	-61.4	-72.7
Sales and commission costs	-18.4	-13.8
Editorial subcontracting	-11.8	-11.9
Royalties	-46.0	-48.8
Other purchased services	-45.9	-48.1
Other	-31.5	-26.7
Total	-434.3	-487.0

Other operating expenses


EUR million	2024	2023
Losses on sales of Group companies and operations	-0.4
Operating costs of premises	-10.3	-9.7
Rents	-3.8	-4.8
Advertising and marketing	-55.4	-56.9
Office and ICT expenses	-116.6	-98.5
Professional fees	-30.1	-28.9
Travel expenses	-7.2	-6.8
Other	8.4	-33.5
Total	-215.4	-239.0

The Group had no material research and development expenditure recognised as an expense during the financial year or

during the comparative year.

In 2023, other operating expenses include EUR -35.9 million VAT claims for years 2015–2018 and 2019–2021. Other

operating expenses include also cost adjustments related to the capitalisation in PPE and intangible assets.

Other operating expenses include the following expenses related to lease contracts.


EUR million	2024	2023
Expense relating to short-term leases	-4.0	-4.3
Expense relating to leases of low-value assets	0.0	0.0
Expense relating to variable lease payments not included in lease liabilities	-1.1	-1.2

Audit fees


EUR million	2024	2023
Statutory audit	-1.2	-1.3
Audit-related services	-0.1	0.0
Tax services	0.0	0.0
Other non-audit services	-0.4	-0.2
Total	-1.7	-1.6

In 2024, PricewaterhouseCoopers Oy, a firm of Authorised Public Accountants, acted as Sanoma’s auditor.

PricewaterhouseCoopers Oy has provided non-audit services to entities of Sanoma Group in total EUR 0.4 million (2023: 0.2)

during the financial year 2024. The services for the year 2024 included auditor’s statements, sustainability reporting

assurance, tax services and other services.


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2.6 Depreciation, amortisation and impairment losses

Depreciation, amortisation and impairment losses


EUR million	2024	2023
Amortisation of intangible assets
Purchase price allocation amortisation	-36.7	-41.3
Other amortisation of intangible assets
Prepublication rights of learning materials	-46.4	-42.5
Film and TV broadcasting rights	-55.2	-58.9
Other intangible assets	-32.2	-26.8
Total	-170.6	-169.6

Depreciation of property, plant and equipment
Rental books	-3.9	-7.4
Other depreciation	-6.4	-7.9
Total	-10.3	-15.3

Depreciation of right of use assets
Buildings	-26.3	-27.9
Machinery and vehicles	-5.6	-5.4
Total	-31.9	-33.3

Impairment losses	-34.8	-17.7

Total	-247.6	-235.9

2.7 Financial items

Financial items


EUR million	2024	2023
Dividend income	0.2	0.1
Interest income from financial assets measured at amortised cost	2.1	2.2
Forward currency exchange contracts, change in fair value		0.0
Exchange rate gains	3.9	5.7
Other financial income	0.7	0.7
Financial income total	6.8	8.6
Interest expenses from financial liabilities measured at amortised cost	-28.4	-25.0
Interest expenses on leases	-6.0	-6.4
Forward currency exchange contracts, no hedge accounting, change in fair value	0.0	0.0
Fair value losses	0.0	-1.0
Exchange rate losses	-3.7	-3.8
Other financial expenses	-2.2	-3.0
Financial expenses total	-40.3	-39.1
Total	-33.4	-30.5


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2.8 Income taxes and deferred taxes

Income taxes


EUR million	2024	2023
Income taxes on operational income	-23.1	-26.3
Income taxes from previous periods	0.2	6.2
Withholding tax on dividends	0.0
Change in deferred tax	15.0	3.5
Tax expense in the income statement	-7.8	-16.5

Income tax reconciliation against local tax rate


EUR million	2024	2023
Result before taxes	48.4	20.6
Tax calculated at (Finnish) statutory rate 20%	-9.7	-4.1
Effect of different tax rates in the operating countries	0.4	-0.3
Non-taxable income	3.7	0.8
Non-deductible expenses	-1.6	-10.8
Tax relating to previous accounting periods	-0.8	6.2
Effect of joint ventures and associated companies	0.2	0.4
Write down or non-recognition of deferred tax assets from losses	0.5	-8.7
Dispute regarding VAT treatment of certain magazines		-2.0
Other items	-0.4	2.0
Income taxes in the income statement	-7.8	-16.5
Effective tax rate, %	16.1	80.3


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Deferred tax receivables and liabilities 2024


EUR million	At 1 Jan	Recorded in the income statement	Recorded in the equity	Operations acquired/ sold	Recorded in other comprehensive income	Translation differences and reclassifications	At 31 Dec
Deferred tax receivables
Tax losses carried forward and unused credits	2.1	-1.5		0.0		0.2	0.7
PPE and intangible assets	47.4	-4.5		0.0		-0.1	42.7
Inventories	0.2	0.2				0.2	0.6
Trade and other receivables	0.2	0.3				0.0	0.5
Provisions	5.0	1.6				0.0	6.7
Pension obligations, defined benefit plans	1.2	0.0			-0.4	-0.5	0.3
Other items	2.5	0.2				-0.2	2.6
Total	58.5	-3.6		0.0	-0.4	-0.4	54.1
Offsetting of deferred tax assets and liabilities	-53.0						-50.4
Total	5.5						3.8
Deferred tax liabilities
PPE and intangible assets	161.0	-17.4		0.0		-1.9	141.7
Inventories	0.0	0.0				0.2	0.2
Pension assets, defined benefit plans	6.0	0.5			0.6	-0.5	6.7
Other items	1.9	-1.6				1.6	1.9
Total	169.0	-18.6		0.0	0.6	-0.5	150.5
Offsetting of deferred tax assets and liabilities	-53.0						-50.4
Total	116.0						100.1


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Deferred tax receivables and liabilities 2023


EUR million	At 1 Jan	Recorded in the income statement	Recorded in the equity	Operations acquired/ sold	Recorded in other comprehensive income	Translation differences and reclassifications	At 31 Dec
Deferred tax receivables
Tax losses carried forward and unused credits	10.2	-7.4				-0.8	2.1
PPE and intangible assets	51.4	-1.2				-2.8	47.4
Inventories	0.1	0.1				0.0	0.2
Trade and other receivables	0.1	0.1					0.2
Provisions	3.4	1.4				0.3	5.0
Pension obligations, defined benefit plans	1.0	-0.2			0.3	0.0	1.2
Other items	0.9	0.9	0.5			0.2	2.5
Total	67.1	-6.3			0.3	-2.6	58.5
Offsetting of deferred tax assets and liabilities	-56.4						-53.0
Total	10.7						5.5
Deferred tax liabilities
PPE and intangible assets	172.4	-8.9		0.3		-2.8	161.0
Inventories	0.0	0.0				0.0	0.0
Pension assets, defined benefit plans	3.1	-0.6			3.5	0.0	6.0
Other items	2.2	-0.3				0.0	1.9
Total	177.8	-9.8		0.3	3.5	-2.8	169.0
Offsetting of deferred tax assets and liabilities	-56.4						-53.0
Total	121.4						116.0

Tax losses


	Tax losses carried forward		Recognised deferred tax asset		Unrecognised deferred tax asset
EUR million	2024	2023	2024	2023	2024	2023
Expiry within five years	0.5	1.2		0.0	0.1	0.0
Expiry after five years	1.5	9.3	0.0	0.2	0.3	2.0
No expiry	33.9	58.9	0.6	1.8	6.9	11.8
Total	36.0	69.5	0.6	2.0	7.3	13.8


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The recognition of the deferred tax assets is supported by offsetting deferred tax liabilities and where applicable by the

Group’s estimations of future taxable profits based on the approved business plans and budgets of the subsidiary. The Group

continually evaluates the assessments in respect of the utilisation of the deferred tax assets.

Due to the unlikely use of tax benefits in the coming years, deferred tax receivables of EUR 7.3 million (2023: 13.8) have not

been recorded in the consolidated balance sheet based on the management’s judgement. These unrecognised receivables

relate mainly to tax losses carried forward of subsidiaries.

Pillar 2

Sanoma is within the scope of the OECD Pillar 2 global minimum tax model rules. The rules are effective for Sanoma’s

financial year beginning 1 January 2024.

Under the Pillar 2 legislation, Sanoma might be liable to pay a top-up tax for the difference between its effective tax rate per

jurisdiction calculated using Global Anti-Base Erosion (GloBE) rules and the 15% minimum rate. Based on our analysis of the

2024 financial data, we have determined that the transitional Pillar 2 safe harbours apply to us. Consequently, we are not

expecting additional tax exposure under Pillar 2 in 2024. The assessment is based on the most recent country-by-country

reporting and IFRS financial data of the jurisdictions.


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2.9 Earnings per share

Undiluted earnings per share is calculated by dividing the result for the period attributable to the equity holders of the Parent

Company, adjusted by the tax-adjusted interest on the hybrid bond, by the weighted average number of shares outstanding.

Earnings per share


	2024	2023
Result attributable to the equity holders of the Parent Company, EUR million	40.5	3.3

Accrued interest on the hybrid bond	-12.0	-9.5
Tax effect	2.4	1.9
Net effect	-9.6	-7.6

Weighted average number of shares on the market, thousands	163,413	163,253
Earnings per share, EUR	0.19	-0.03

Diluted earnings per share is calculated by adjusting the weighted average number of shares so that share plans are taken

into account.

Diluted earnings per share


	2024	2023
Profit used to determine diluted earnings per share, EUR million	40.5	3.3

Accrued interest on the hybrid bond	-12.0	-9.5
Tax effect	2.4	1.9
Net effect	-9.6	-7.6

Weighted average number of shares on the market, thousands	163,413	163,253
Effect of share plans, thousands	227	236
Diluted average number of shares, thousands	163,641	163,489

Diluted earnings per share, EUR	0.19	-0.03

Information on share plans is presented in Note 6.2. For more information on shares and shareholders, see Report of the

Board of Directors section Ownership structure and shareholders.


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3. Acquisitions and capital expenditure

3.1 Acquisitions and divestments

Acquisitions in 2024

No acquisitions were conducted during 2024.

Impact of business acquisitions on Group’s assets and liabilities


EUR million	2024	2023
Property, plant and equipment		0.0
Right-of-use assets		0.1
Intangible assets		2.0
Other non-current assets		0.0
Other current assets		3.3
Assets, total		5.4
Non-current liabilities		-2.3
Current liabilities		-2.5
Liabilities, total		-4.8
Fair value of acquired net assets		0.6
Acquisition cost		1.6
Fair value of previously held interest		0.2
Fair value of acquired net assets		-0.6
Goodwill from the acquisitions		1.2

Acquisitions of non-controlling interests


EUR million	2024	2023
Acquisition cost		2.8
Book value of the acquired interest		1.1
Impact on consolidated equity		-1.7

Cash paid to obtain control, net of cash acquired


EUR million	2024	2023
Acquisition cost		1.6
Cash and cash equivalents of acquired operations		-1.5
Decrease (+) / increase (-) in acquisition liabilities	0.8	0.2
Cash paid to obtain control, net of cash acquired	0.8	0.4
Acquisition cost		2.8
Decrease (+) / increase (-) in acquisition liabilities		4.3
Cash paid on acquisitions of non-controlling interests		7.1

Acquisitions in 2023

In 2023, Sanoma invested EUR 4.4 million in business acquisitions.

On 30 August 2023, Sanoma Media Finland acquired 100% of the shares of Marva Media Oy and Rauman Suorajakelu Oy.

Marva Media publishes the newspaper Länsi-Suomi and the city paper Raumalainen. The transaction strengthens the reach of

Sanoma’s regional newsmedia and the customer base in the Satakunta area.

On 3 April 2023, Sanoma Learning acquired the rest of the shares of Tutorhouse Oy and increased its ownership from 80% to

100%.

On 31 March 2023, Sanoma Learning acquired the rest of the shares of Clickedu and increased its ownership from 67% to

100%.

On 17 February 2023, Sanoma Media Finland acquired the rest of the shares of Valopilkku and increased its ownership to

100%.

On 10 February 2023, Sanoma Media Finland increased its ownership in Kaiku Entertainment Oy from 60% to 100%.

On 31 August 2022, Sanoma acquired Pearson’s local K12 learning content business in Italy and its small exam preparation

business in Germany. Acquisition accounting for Sanoma Italy was disclosed in the 2022 financial statements as provisional.

The purchase price allocation was finalised during Q3 2023, resulting in EUR 0.5 million decrease in goodwill. The purchase

price has been allocated to identified net assets which include trademarks, customer relationships, ELT (English language

teaching) distribution agreement and inventory.

Net sales of Sanoma Group would have totalled approx. EUR 1,397 million, if acquisitions had taken place at the beginning of

the year 2023. The effect of the acquisitions on the Group’s 2023 result before taxes was minor.


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Divestments in 2024

On 2 April 2024, Sanoma divested Valopilkku to Fonecta Group. Valopilkku is one of Finland’s best-known taxi booking

applications with users all over Finland.

On 31 January 2024, Sanoma divested its majority holding in Netwheels Oy to Alma Media. Netwheels Oy offers car sales

software as a service (SaaS) to a large corporate customer base in the automotive industry in Finland. Sanoma Media Finland

Oy held a total of 55.8% in Netwheels. In 2023, net sales of Netwheels Oy were approx. EUR 8 million and it employed 29

people, who were transferred to the buyer with the divestment.

On 2 January 2024, Sanoma divested Stark, an exam preparation business in Germany, which it acquired with the Italian K12

learning content business from Pearson in August 2022. The buyer was the original founder of the business, Mr. Stark. In

2023, Stark’s net sales were approx. EUR 14 million and the company employed 56 people, who were transferred to the buyer

with the divestment.

Impact of divestments on Group’s assets and liabilities


EUR million	2024	2023
Property, plant and equipment	0.0
Goodwill	2.3
Other intangible assets	0.9
Inventories	0.2
Trade and other receivables	2.7
Cash and cash equivalents	6.6
Assets, total	12.8
Deferred tax liabilities	0.0
Financial liabilities	-0.4
Trade and other payables	-4.5
Liabilities, total	-5.0
Derecognised non-controlling interest	-1.5
Net assets	6.3

Sales price	12.2	1.6
Transaction fees paid	-0.7
Net result from sale of operations	5.2	1.6

Cash flow from sale of operations


EUR million	2024	2023
Sales price	12.2	1.6
Cash and cash equivalents of divested operations	-6.6
Decrease (+) / increase (-) in receivables from divestment		1.9
Cash flow from sale of operations	5.6	3.5

Divestments in 2023

On 1 November 2023, Sanoma Media Finland sold Earlybird distribution business to distribution company PPP Finland Oy.

On 22 February 2023, Sanoma Media Finland sold audio service Supla’s audiobook operations to BookBeat.


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3.2 Intangible assets

Intangible assets 2024


EUR million	Goodwill	Immaterial rights	Prepublication rights	Other intangible assets	Advance payments	Total
Acquisition cost at 1 Jan	860.0	529.4	541.2	682.7	45.4	2,658.6
Increases		53.9	46.1	23.9	6.2	130.0
Decreases		-46.5	-16.1	-2.9		-65.6
Disposal of operations	-48.0	-1.9	-0.6	-3.0		-53.5
Reclassifications		8.5		8.2	-16.7	0.0
Exchange rate differences	-0.1	0.1	-0.2	-0.3	0.0	-0.4
Acquisition cost at 31 Dec	811.9	543.4	570.4	708.5	34.9	2,669.1

Accumulated amortisation and impairment losses at 1 Jan	-47.8	-360.0	-402.8	-315.3		-1,125.8
Decreases, disposals and acquisitions	45.6	48.5	16.6	5.1		115.9
Amortisation for the period		-70.4	-46.4	-53.7		-170.6
Impairment losses for the period		-2.5	-1.6	-28.8		-32.9
Reclassifications				0.1	-0.1	0.0
Exchange rate differences		0.0	0.1	0.1		0.2
Accumulated amortisation and impairment losses at 31 Dec	-2.1	-384.4	-434.1	-392.5	-0.1	-1,213.2
Carrying amount at 31 Dec	809.8	159.0	136.2	316.0	34.8	1,455.9


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Intangible assets 2023


EUR million	Goodwill	Immaterial rights	Prepublication rights	Other intangible assets	Advance payments	Total
Acquisition cost at 1 Jan	869.7	542.0	508.5	655.0	33.4	2,608.6
Increases		65.2	55.3	24.5	11.0	156.1
Acquisitions of operations	3.5	1.2		0.7		5.4
Decreases		-71.7	-29.2	-5.9	-0.1	-106.9
Reclassifications	-12.2	-8.1	4.4	7.4	0.9	-7.6
Exchange rate differences	-1.1	0.8	2.2	1.0	0.1	3.0
Acquisition cost at 31 Dec	860.0	529.4	541.2	682.7	45.4	2,658.6

Accumulated amortisation and impairment losses at 1 Jan	-57.7	-353.1	-380.6	-266.1		-1,057.5
Decreases, disposals and acquisitions		71.7	29.2	5.9		106.8
Amortisation for the period		-74.3	-42.5	-52.8		-169.6
Impairment losses for the period	-2.3	-4.1	-3.1	-1.2		-10.7
Reclassifications	12.2	0.1	-4.4	-0.4	0.0	7.4
Exchange rate differences		-0.3	-1.4	-0.7	0.0	-2.3
Accumulated amortisation and impairment losses at 31 Dec	-47.8	-360.0	-402.8	-315.3		-1,125.8
Carrying amount at 31 Dec	812.2	169.4	138.4	367.4	45.4	1,532.7


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Immaterial rights include purchase price allocations total 143.5 million (2023: 155.4) e.g., allocations to trade marks. The

prepublication rights of learning materials and solutions are internally generated intangible assets. Other intangible assets

include mainly assets identified in acquisition accounting total 241.6 million (2023: 290.8), e.g., purchase price allocated to

customer relationships.

Excluding goodwill the Group has no intangible assets with indefinite useful lives at the end of the financial year.

Impairment losses recognised from immaterial rights and other intangibles assets

Intangible assets with definite useful lives are amortised using the straight-line method, except for the immaterial rights where

the diminishing method is used for broadcasting rights and the straight-line method for other immaterial rights. At each

reporting date it is assessed whether there is any indication that these intangible assets may be impaired. If any such

indication exists, the recoverable amount of the asset is estimated by determining the present value of future cash flows of the

asset.

Impairment losses totalling EUR 32.9 million (2023: 8.4) were recognised from intangible assets with definite useful lives, of

which EUR 30.0 million related to Sanoma Learning strategic business unit (SBU) (2023: 3.6), EUR 2.5 million related to the

Sanoma Media Finland SBU (2023: 4.8) and EUR 0.4 million related to corporate intangible assets (2023: 0.0).

In Sanoma Media Finland SBU, the impairment related mainly to TV programme rights. The impairments in the Sanoma

Learning SBU largely related to to the planned discontinuation of low-value distribution contracts in the Netherlands and

Belgium, and some minor impairments related to learning solutions and ICT systems.

Allocation of goodwill and intangible assets with indefinite useful life

For the purpose of impairment testing, goodwill has been allocated to two CGUs which are operating segments/SBUs. The

allocation of goodwill is as presented in the following table.

Carrying amounts of goodwill in the CGUs


EUR million	2024	2023
Sanoma Learning	700.4	700.5
Sanoma Media Finland	109.3	111.7
CGUs, total	809.8	812.2

Impairment losses recognised from goodwill

There were no impairment losses recognised from goodwill in the financial year (2023: 2.3).

Methodology and assumptions used in impairment testing

Impairment testing of assets is principally carried out on a cash flow basis whereby the Value in Use is used as the

recoverable amount. The recoverable amount is determined based on the present value of future cash flows of the Group’s

CGUs, using a post-tax WACC. Deferred and current income tax assets and liabilities (including deferred tax liabilities related

to previous purchase price allocations) have been included in the carrying amount.

Calculations of the recoverable amount are based on a five-year forecast period. Cash flow estimates are based on

management approved strategic plans at the time of testing, including assumptions on the development of the business

environment. Actual cash flows may differ from estimated cash flows if the key assumptions do not realise as estimated.

The key assumptions in the calculations include profitability level, discount rate, long-term growth rate, as well as market

positions. Assumptions are based on medium-term strategic plans and forecasts made annually in each business unit and

approved by the Sanoma Executive Management Team (EMT) and the Board in a separate process. Market position and

profitability level assumptions are based on past experience, the assessment of the SBU and Group management of the

development of the competitive environment and competitive position of each CGU, as well as the impact of Sanoma’s

transformation strategy and cost savings initiatives.

The terminal growth rate used in the calculations is based on management’s assessment of long-term growth. The growth rate

is estimated by taking into account growth projections by market that are available from external sources of information, as

well as the characteristics of each CGU. The terminal growth rates used for the CGUs in the reporting and comparable period

were as follows:


The average terminal growth rate used in calculation of the recoverable amount, %	2024	2023
Sanoma Learning	2.5	3.0
Sanoma Media Finland	-1.1	-1.1

Following the Finnish market changes in combination with the changes in the Sanoma Media Finland CGU portfolio (the

transformation of traditional media to digital), the terminal growth rate is expected to be at the same level as last year. The

terminal growth rate for the Sanoma Learning CGU is somewhat lower than last year based on review and projections of the

various curriculum cycles across its footprint markets and due to inflation development. Management has also estimated the

expected effects of new reforms and potential industry developments.


The average discount rate used in calculation of the recoverable amount, %	2024 Post-tax	2023 Post-tax
Sanoma Learning	7.4	8.6
Sanoma Media Finland	8.5	10.3

The CGU-specific discount rates represent the blended average cost of capital of each CGU. On an annual basis Sanoma re-

assesses the WACC calculation based on updated market parameters and updates the WACC accordingly. In impairment test

calculations, capital expenditure is assumed to comprise normal replacement investments, and foreign exchange rates are

based on euro rates at the time of testing.

The recoverable amounts of Sanoma Learning and Sanoma Media Finland clearly exceed their carrying amounts. Any

reasonably expected changes in key assumptions would not result in impairment.


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3.3 Property, plant and equipment and right-of-use assets

Property, plant and equipment 2024


EUR million	Land and water	Buildings and structures	Machinery and equipment	Rental books	Other tangible assets	Advance payments	Total
Acquisition cost at 1 Jan	0.4	6.6	141.4	54.5	28.8	0.3	232.0
Increases			3.0	3.7	0.8	3.2	10.6
Decreases			-3.9	-3.7	-0.3		-7.9
Disposal of operations			-1.6		-0.1		-1.7
Reclassifications			0.3		0.2	-0.4	0.1
Exchange rate differences	0.0	0.0	0.0		0.0	0.0	0.1
Acquisition cost at 31 Dec	0.4	6.6	139.2	54.4	29.4	3.1	233.2

Accumulated depreciation and impairment losses at 1 Jan	-0.1	-1.3	-131.1	-42.6	-16.5		-191.7
Decreases, disposals and acquisitions			5.0	1.9	0.3		7.2
Depreciation for the period		0.0	-4.0	-3.9	-2.4		-10.3
Impairment losses for the period			0.0	-0.9			-0.9
Reclassifications			0.0		0.0		-0.1
Exchange rate differences	0.0	0.0	0.0		0.0		-0.1
Accumulated depreciation and impairment losses at 31 Dec	-0.1	-1.4	-130.1	-45.4	-18.7		-195.8
Carrying amount at 31 Dec 2024	0.3	5.2	9.1	9.0	10.7	3.1	37.4


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Property, plant and equipment 2023


EUR million	Land and water	Buildings and structures	Machinery and equipment	Rental books	Other tangible assets	Advance payments	Total
Acquisition cost at 1 Jan	0.4	8.2	147.5	65.2	27.1	0.2	248.5
Increases			4.0	8.7	2.1	0.4	15.2
Acquisition of operations			0.0		0.0	0.0	0.0
Decreases		-1.4	-9.7	-19.4	-0.8		-31.2
Reclassifications		-0.3	-0.6		0.3	-0.3	-0.8
Exchange rate differences	0.0	0.1	0.2		0.0	0.0	0.3
Acquisition cost at 31 Dec	0.4	6.6	141.4	54.5	28.8	0.3	232.0

Accumulated depreciation and impairment losses at 1 Jan	-0.1	-2.6	-135.7	-46.3	-14.6		-199.3
Decreases, disposals and acquisitions		1.4	9.3	17.3	0.8		28.8
Depreciation for the period		0.0	-5.2	-7.4	-2.7		-15.3
Impairment losses for the period		-0.4	-0.1	-6.1	0.0		-6.6
Reclassifications		0.3	0.7		0.1		1.1
Exchange rate differences	0.0	-0.1	-0.2		0.0		-0.3
Accumulated depreciation and impairment losses at 31 Dec	-0.1	-1.3	-131.1	-42.6	-16.5		-191.7
Carrying amount at 31 Dec 2023	0.3	5.2	10.2	11.9	12.3	0.3	40.3


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Right-of-use assets

Depreciation of right-of-use assets


EUR million	2024	2023
Depreciation for the period
Buildings	-26.3	-27.9
Machinery	-2.2	-2.4
Vehicles	-3.4	-3.0
Total	-31.9	-33.3

Carrying amount of right-of-use assets


EUR million	2024	2023
Carrying amount
Buildings	98.3	118.0
Machinery	17.3	19.3
Vehicles	7.5	6.8
Total	123.1	144.2

Additions to the right-of-use assets during the 2024 financial year were EUR 14.1 million (2023: 23.9).

Carrying amount of right-of-use assets has increased by EUR 0.0 million (2023: 0.1) due to acquisitions.

The Group’s leasing activities

The Group leases buildings for its office space. Rental contracts are typically made for fixed periods of 5–15 years. Some

leases include an option to extend the lease for an additional period after the end of the contract term or terminate the contract

during the lease term. The Group assesses at the lease commencement whether it is reasonably certain to exercise the

extension option or termination option. During the lease term the Group reassesses whether it is reasonably certain to

exercise the option if there is a significant event or significant change in circumstances within its control. The most significant

lease contracts are related to properties of Sanomala and Sanoma House.

The Group leases also cars which have lease terms of 3–5 years. Machinery includes a printing press and some IT

equipment. Most leased IT equipment and machinery are leases of low-value items and the Group has elected not to

recognise right-of-use assets and lease liabilities for these leases. Also, short-term leases are reported as expense in income

statement.

Lease liabilities are presented in Note 5.1.


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4. Working capital and other balance sheet items

4.1 Inventories


EUR million	2024	2023
Materials and supplies	5.9	8.4
Work in progress	0.1	0.1
Finished products/goods	37.1	43.5
Other	1.9	1.5
Total	45.0	53.5

EUR 1.4 million (2023: 3.5) was recognised as impairment in the financial year. The carrying amount of inventories was written

down to reflect their net realisable value.

4.2 Other receivables, non-current


EUR million	2024	2023
Financial assets at amortised cost
Other receivables	1.1	1.2
Advance payments	0.8	1.8
Net defined benefit pension assets1	30.6	28.4
Total	32.6	31.4

1 Net defined benefit pension assets, see Note 4.9

The fair values of receivables do not significantly differ from the carrying amounts of receivables.

4.3 Trade and other receivables, current


EUR million	2024	2023
Financial assets at amortised cost
Trade receivables1	108.5	98.5
Other receivables	2.9	2.7
Financial assets at fair value
Derivatives2	0.1	0.0
Accrued income	13.3	17.3
Advance payments	9.2	10.3
Other receivables	7.8	10.5
Total	141.7	139.4

1 Trade receivables, see Note 5.2

2 Derivatives, see Note 5.2

The Group has recognised a total of EUR 1.4 million (2023: 3.7) in credit losses and change in impairment allowances on

trade receivables. Information on how impairment allowance for trade receivables has been defined and the impact of the

Ukraine war on the expected credit losses are included in Note 5.2.

The fair values of receivables do not significantly differ from the carrying amounts of receivables.

Accrued income

The most significant items under accrued income relate to normal business activities and include e.g., accruals for delivered

newspapers and magazines.


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4.4 Provisions

Changes in provisions


EUR million	Restructuring provisions	Other provisions	Total
At 1 Jan 2024	12.9	1.4	14.3
Exchange rate differences	0.0	0.0	0.0
Increases	4.9	2.2	7.1
Amounts used	-10.8	-0.3	-11.1
Unused amounts reversed	0.0	0.0	0.0
At 31 Dec 2024	6.9	3.3	10.2

Carrying amounts of provisions


EUR million	2024	2023
Non-current	4.5	2.0
Current	5.7	12.3
Total	10.2	14.3

Provisions are based on best estimates on the balance sheet date. Restructuring provisions mainly relate to Program Solar.

Other provisions include provisions related to contracts with customers and other smaller provisions.

4.5 Trade and other payables


EUR million	2024	2023
Non-current
Accrued expenses	0.4	0.8
Advances received	0.5	0.6
Other financial liabilities at amortised cost	1.8	1.2
Total	2.7	2.5

Current
Trade payables	57.3	50.9
Other liabilities	39.6	44.0
Derivatives1		0.0
Accrued expenses	142.0	146.6
Advances received	0.6	0.5
Total	239.4	242.1

Total	242.1	244.6

1 Derivatives, see Note 5.2

Accrued expenses

Accrued expenses mainly consisted of accrued personnel expenses, royalty liabilities and accruals related to common

business activities.


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4.6 Investment property

Investment property 2024


EUR million	Land and water	Buildings and structures	Total
Acquisition cost at 1 Jan	2.8	0.2	3.0
Acquisition cost at 31 Dec	2.8	0.2	3.0
Accumulated depreciation and impairment losses at 1 Jan		0.0	0.0
Accumulated depreciation and impairment losses at 31 Dec		0.0	0.0
Carrying amount at 31 Dec 2024	2.8	0.2	2.9
Fair values at 31 Dec 2024	8.5	0.2	8.8

Investment property 2023


EUR million	Land and water	Buildings and structures	Total
Acquisition cost at 1 Jan	5.0	0.2	5.2
Decreases	-2.3		-2.3
Acquisition cost at 31 Dec	2.8	0.2	3.0
Accumulated depreciation and impairment losses at 1 Jan		0.0	0.0
Accumulated depreciation and impairment losses at 31 Dec		0.0	0.0
Carrying amount at 31 Dec 2023	2.8	0.2	2.9
Fair values at 31 Dec 2023	8.5	0.2	8.8

The fair values of investment property have been determined by using either the yield value method or using the information

on equal real estate business transactions in the market. Also, an outside surveyor has been used when determining the fair

value. In yield method calculations, investor’s return requirement range is 5–30%. Investment properties are classified at fair

value hierarchy level 3.

The investment property includes land areas in the City of Vantaa, village of Keimola (Finland).

The investment property also includes land areas in the City of Vantaa, village of Vantaankoski, which are partly unplanned

raw land and partly lots and parcels of land.

Operating expenses of investment property


EUR million	2024	2023
Investment property, no rental income	0.0	0.0

Rental income of investment property


EUR million	2024	2023
Rental income of investment property	0.1	0.1

4.7 Equity-accounted investees

Interests in joint ventures and associated companies


EUR million	2024	2023
Interests in joint ventures	1.9	1.8
Interests in associated companies	1.7	1.8
Total	3.5	3.6

Joint ventures

The Group had no material joint ventures in the financial year or previous year. The information on the Group’s joint ventures

has been presented as aggregated in the table below.

Interests in joint ventures


EUR million	2024	2023
Carrying amount at 1 Jan	1.8	1.5
Share of total comprehensive income	0.9	0.7
Dividends received	-0.8	-0.5
Other changes		0.1
Carrying amount at 31 Dec	1.9	1.8

Associated companies

The Group had no material associated companies in the financial year or previous year. The information on the Group’s

associated companies has been presented as aggregated in the table below.


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Interests in associated companies


EUR million	2024	2023
Carrying amount at 1 Jan	1.8	2.6
Share of total comprehensive income	0.0	-0.6
Increases		0.0
Other changes	-0.1	-0.2
Carrying amount at 31 Dec	1.7	1.8

List of associated companies and joint ventures, see Note 6.4.

4.8 Other investments


EUR million	2024	2023
Other investments, non-current	2.9	2.8

Other investments mainly include investments in shares, and the Group does not intend to sell these assets. Other

investments are measured at fair value and are classified at fair value hierarchy level 3.

4.9 Post-employment benefits

Sanoma Group has various schemes for its personnel’s pension cover that comprise both defined contribution and defined

benefit pension plans. Pension schemes are arranged in accordance with local requirements and legislation. The majority of

the pension plans are of a defined contribution structure, where the employer contribution and resulting income charge is fixed

at a set level or is set at a percentage of employee’s pay. Contributions made to defined contribution pension plans and

charged to the income statement totalled EUR 38.8 million (2023: 37.6).

Defined benefit pension plans in Sanoma are mainly related to Finland.

In Finland, the Group has a pension fund responsible for the statutory pension cover for certain Group company, as well as for

supplementary pension schemes. The pension schemes arranged by a pension fund are classified as defined benefit plans. In

addition to the pension fund in Finland, the Group also has other supplementary defined benefit pension schemes which are

managed by insurance companies.

The supplementary pension schemes are final average pay plans, and the benefits comprise old-age, disability and surviving

dependent pensions. The supplementary pension schemes entitle a retired employee to receive a monthly pension payment

based on the employee’s final average salary.

The Finnish defined benefit plans are administered by a pension fund that is legally separated from the Group. The pension

fund is governed by a board, which is composed of employee and employer representatives. The board appoints the

managing director for the pension fund, who is also a member of the board.

The board of the Finnish pension fund sets out on an annual basis the strategic investment policy and plan. The Investment

Committee of Sanoma Group assists the board and managing director of the pension fund. The pension fund is entitled to use

an external asset manager who is authorised to do investments in accordance with the investment policy. The investments are

allocated mainly to instruments, which have quoted prices in active markets, like listed shares, bonds and investment funds.

Finnish voluntary defined benefit pension plans are fully and statutory pension plans partially funded.

The risks in Finnish pension plans are mainly related to the adequacy of the pension liability and investment operations. The

pension liability may prove insufficient if the related insurance portfolio essentially differs from that of other pension institutions,

the returns of investments remain below the average return of the pension system or the average lifetime exceeds the

calculated assumption. A pension expense development forecast has been prepared for the pension fund in aid of risk

management. The actuary of the pension fund is responsible for the solvency of the pension liability. The extremely favourable

structure of the pension fund’s insurance portfolio and good solvency give the pension fund the possibility to consider taking

more deviation risk in its investment strategy by investing its assets in deviation from the average allocation of occupational

pension companies.The pension fund’s key risks in investment operations include the interest rate risk, stock market risk,

credit risk, currency risk and liquidity risk. Risks related to various asset classes are managed through the effective distribution

of investments between asset classes. Liquidity risks are managed by making investments that can be converted into cash

very rapidly.

The actuarial calculations for the Group’s defined benefit pension plans have been prepared by external actuaries. In addition

to pension plans, Sanoma Group has no other defined benefit plans.

Sanoma Group recognised total defined benefit costs related to all pension plans as follows:

Pension costs recognised in the income statement


EUR million	2024	2023
Current service costs	-1.5	-1.7
Net interest	0.8	0.4
Effect of settlements		-0.2
Administration costs	-0.2	-0.2
Total	-0.8	-1.8


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Per year-end the net pension liability can be specified as follows:

Net defined benefit pension liabilities (assets) in the balance sheet


EUR million	2024	2023
Net defined benefit pension liabilities	2.7	3.4
Net defined benefit pension assets	30.6	28.4
Net defined benefit pension liability (asset) total	-27.9	-25.1

The reconciliation from the opening balances to the closing balances for the net defined benefit pension liability (asset) and its

components is presented in the following table.


EUR million	Defined benefit obligation	Fair value of plan assets	Total
1 Jan 2023	144.4	-155.9	-11.6
Current year service cost	1.7		1.7
Interest cost/income	5.0	-5.3	-0.4
Effect of settlements	0.1	0.1	0.2
Administration cost		0.2	0.2
Total recognised in the result for the period	6.8	-5.0	1.8
Remeasurement of the net defined benefit liability:
Gains/losses arising from financial assumptions	-5.5		-5.5
Experience adjustments	-1.9		-1.9
Return on plan assets excluding interest income		-8.4	-8.4
Total recognised in other comprehensive income	-7.3	-8.4	-15.7
Contributions by the employer		0.4	0.4
Contributions by plan participants	0.3	-0.3
Benefits paid from funds	-9.7	9.7
Other changes	2.3	-2.3
31 Dec 2023	136.7	-161.7	-25.1


EUR million	Defined benefit obligation	Fair value of plan assets	Total
1 Jan 2024	136.7	-161.7	-25.1
Current year service cost	1.5		1.5
Interest cost/income	4.4	-5.3	-0.8
Effect of settlements	-0.1	0.1
Administration cost		0.2	0.2
Total recognised in the result for the period	5.8	-5.0	0.8
Remeasurement of the net defined benefit liability:
Gains/losses arising from financial assumptions	7.8		7.8
Experience adjustments	-2.7		-2.7
Return on plan assets excluding interest income		-10.0	-10.0
Total recognised in other comprehensive income	5.2	-10.0	-4.8
Contributions by the employer		1.1	1.1
Contributions by plan participants	0.3	-0.3
Benefits paid from funds	-9.2	9.2
31 Dec 2024	138.8	-166.7	-27.9

A breakdown of net defined benefit liability and the split between countries is shown below.

Net defined benefit pension liabilities (assets) in the balance sheet 2024


EUR million	Finland	Belgium	Total
Present value of funded obligations	128.8	10.0	138.8
Fair value of plan assets	-159.4	-7.4	-166.7
Total	-30.6	2.6	-27.9

Net defined benefit pension liabilities (assets) in the balance sheet 2023


EUR million	Finland	Belgium	Total
Present value of funded obligations	126.3	10.4	136.7
Fair value of plan assets	-154.3	-7.4	-161.7
Total	-28.0	3.0	-25.1

The Sanoma Group’s estimated contributions to the defined benefit plans for 2025 are about EUR -1.7 million.


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Plan assets by major categories


%	2024	2023
Equity instruments	52.3	48.5
Bonds and debentures	32.3	39.0
Other items	14.3	11.7
Cash	1.0	0.7
Total	100.0	100.0

The fair value of plan assets included investments in Sanoma shares totalling EUR 2.2 million (2023: 2.0).

Equity instruments consist mainly of investment funds and have quoted prices in active markets.

Principal actuarial assumptions at 31 Dec1


%	2024	2023
Discount rate	3.3	3.4
Expected future salary increase	3.0	3.0
Expected future pension increases	2.5	2.2

1 Expressed as weighted averages.

Assumptions regarding future mortality have been based on published statistics and mortality tables. The current longevities

underlying the values of the defined benefit obligations at the reporting date were as follows:

Longevities at 31 Dec


Year	2024	2023
Longevity at age 65 for current pensioners
Males	21.4	21.4
Females	25.4	25.4
Longevity at age 65 for current members aged 45
Males	23.7	23.7
Females	28.1	28.1

The weighted average duration of the defined benefit obligation at 31 December 2024 was 12.8 years (2023: 12.0).

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions

constant, would have affected the defined benefit obligation by the percentages shown below.

Sensitivity analysis at 31 Dec


%	2024		2023
%	Increase	Decrease	Increase	Decrease
Discount rate (0.5% movement)	-5.6	6.3	-5.3	5.8
Expected future salary increase (0.5% movement)	0.6	-0.5	0.7	-0.5
Expected future pension increases (0.5% movement)	6.0	-5.6	5.5	-5.3
Future mortality (1 year movement)	3.8	-3.7	3.7	-3.5


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5. Capital structure and financial items

5.1 Financial liabilities and lease liabilities


EUR million	2024	2023
Non-current financial liabilities at amortised cost
Loans from financial institutions	218.5	248.7
Bonds	149.2
Lease liabilities	104.1	124.8
Non-current financial liabilities at fair value through profit or loss
Other liabilities	0.0	0.7
Total	471.9	374.2

Current financial liabilities at amortised cost
Loans from financial institutions	50.6	100.8
Commercial papers	37.4
Lease liabilities	29.7	30.0
Bonds		199.9
Current financial liabilities at fair value through profit or loss
Other liabilities	0.0	0.8
Total	117.7	331.4

Total	589.6	705.6

Fair values of loans from financial institutions and other liabilities are close to their carrying values. The fair value of the bond

was EUR 149.2 million on 31 December 2024 (2023: 198.67).

Reconciliation of movement of liabilities to cash flow arising from financial activities


EUR million	Non-current financial liabilities	Current financial liabilities	Lease liabilities	Total	Non-current other liabilities	Total
1 Jan 2023	599.4	100.1	164.9	864.4	5.3	869.7
Cash flows	-75.8	-69.6	-31.1	-176.5	0.1	-176.4
Acquisition of operations			0.1	0.1		0.1
Exchange rate differences			0.8	0.8	0.0	0.8
Other non-cash movements1	-274.3	270.9	20.1	16.8	-2.1	14.7
At 31 Dec 2023	249.4	301.4	154.9	705.6	3.3	709.0

1 Jan 2024	249.4	301.4	154.9	705.6	3.3	709.0
Cash flows	169.0	-263.2	-31.9	-126.1	0.6	-125.6
Disposal of operations			-0.4	-0.4		-0.4
Exchange rate differences			0.1	0.1	0.0	0.1
Other non-cash movements1	-50.6	49.8	11.3	10.5	-0.1	10.3
At 31 Dec 2024	367.8	88.0	133.9	589.6	3.7	593.4

1 Other non-cash movements mainly include classifications between non-current and current financial liabilities.

Total cash flow for leases was EUR -43.0 million in 2024 (2023: -43.1). For more information on the Group’s lease activities,

see Note 3.3.

Loans from financial institutions

In 2024, the Group’s loans from financial institutions consisted of two term loans: EUR 100 million term loan, which is booked

in non-current liabilities, and EUR 250 million term loan. The latter loan has been partly prepaid by EUR 81.1 million in 2024.

Out of the remaining amount of EUR 168.5 million, EUR 118.5 million is booked in non-current liabilities and EUR 50 million in

current liabilities. Loans are valued at amortised cost. For more information, see Note 5.2.

The average interest rate for loans (including bonds and excluding leases) during the financial year was 4.8% (2023: 3.6%,

excluding leases). The interest rates of all loans are tied to Euribor.


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Bonds

In March 2021, the Group issued a EUR 200 million three-year Senior Unsecured bond for institutional investors. The bond

paid a fixed coupon of 0.625% and had an issue price of 99.625%. The bond was fully repaid on the maturity date of 18 March

2024.

In September 2024, the Group issued a EUR 150 million three-year Senior Unsecured Social bond for institutional investors.

The bond pays a fixed coupon of 4.000% and had an issue price of 99.872%. The arrangement fees and expenses relating to

the issue were capitalised and will be amortised over the life of the bond, thus raising the effective interest rate to 4.2%. The

maturity date of the bond is 13 September 2027. The net proceeds of the notes shall be used in accordance with Sanoma’s

Social Bond Framework which are available on Sanoma’s website.

Commercial papers

Sanoma Corporation has domestic and foreign commercial paper programmes which are used for short-term liquidity needs.

Commercial papers are valued at amortised cost, and transaction costs are recognised directly as expenses due to their

immaterial value. In accordance with Group Treasury Policy, outstanding commercial papers are fully backed up with a

committed syndicated credit facility of EUR 300 million with banks in case of possible market disruptions. There were EUR

37.4 million commercial papers outstanding at the end of 2024 (2023: 0).

5.2 Financial risk management

Sanoma’s treasury operations are managed centrally by the Group Treasury. Operating as a counterparty to the Group’s

operational units, Group Treasury is responsible for managing external financing, liquidity and external hedging operations.

Centralised treasury operations focus on ensuring financing on flexible and competitive terms, optimised liquidity

management, cost-efficiency of operations and efficient management of financial risks. Sanoma is exposed to interest rate,

currency, liquidity and credit risks. Its risk management aims to hedge the Group against material risks. The Sanoma Board of

Directors has approved the guidelines in the Group Treasury Policy.

In the long term, to ensure financial flexibility and access to various forms of funding, Sanoma’s goal is to have a capital

structure where net debt/adjusted EBITDA ratio is below 3.0, and equity ratio is between 35% and 45%.

Financial risks can be mitigated with various financial instruments and derivatives whose use, effects and fair values are

clearly verifiable. The Group used currency forward contracts to hedge against FX risks during the year. The Group does not

apply hedge accounting.

Interest rate risks

The Group’s interest rate risk is mainly related to changes in the reference rates and loan margins of floating rate loans in the

Group’s loan portfolio. In 2024, all loans were denominated in euros. The Group manages its exposure to interest rate risk by

ensuring that the interest duration of the gross debt of the Group is within a certain time range approved by the Sanoma Board

of Directors as part of the Treasury Policy. According to the Treasury Policy, interest rate derivatives may also be utilised.

Loan portfolio by interest rate as at year end


EUR million	2024	2023
Floating-rate loans	306.5	349.5
Fixed-rate loans	149.2	199.9
Total	455.7	549.4
Average duration, years	1.0	0.2
Average interest rate, %	4.3	4.1
Interest sensitivity, EUR million1	2.6	3.1

¹ Interest rate sensitivity is calculated by assuming a one percentage point increase in interest rates. The sensitivity represents the effect on profit before taxes.

Currency risks

The majority of the Group cash flow from operations is denominated in euros. However, the Group is exposed to some

transaction risk resulting from cash flows related to revenue and expenditure in different currencies. Group companies are

responsible for monitoring and hedging material transaction risks related to their business operations in accordance with the

Group Treasury Policy. The majority of the transaction risk in 2024 was related to the procurement of IT services for the Group

and programming rights for Nelonen Media, both denominated in US dollars. The Group has adopted forward contracts as

means of hedging against most significant currency exposures. Internal funding transactions within the Group are mainly

carried out in the functional currency of the subsidiary. Group Treasury is responsible for monitoring and hedging the currency

risks related to intra-group loans.

The hedged currencies were USD, NOK and SEK. All other transactions in foreign currencies were not material. If the hedged

currencies weakened by 10% against the euro at the year-end date, the change in the value of forward contracts would

decrease financial expenses by EUR 1.7 million (2023: 1.0 decrease). If the currencies strengthened by 10% against the euro,

financial expense would increase by EUR 1.7 million (2023: 1.0 increase). Derivative instruments are used to hedge future

cash flows, hence changes in their value will offset changes in the value of cash flows.

The Group is also exposed to translation risk resulting from converting the income statement and balance sheet items of

foreign subsidiaries into euros. Business operations outside the euro area (countries in which the currency is not pegged to

the euro) account for about 13.1% (2023: 11.7%) of consolidated net sales and mainly consist of revenues in Polish złoty,

Norwegian krone and Swedish krona. If all reporting currencies had been 10% weaker against the euro during the year, the

Group net sales would have decreased by EUR 16.1 million (2023: 14.8). If all reporting currencies had been 10% stronger

against the euro, the Group net sales would have increased by EUR 19.6 million (2023: 18.1). A significant change in

exchange rates may also have an effect on the value of the businesses in Poland, Norway and Sweden. The Group did not

hedge against translation risk in 2024, in accordance with the Treasury Policy approved by the Board.


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Derivatives

Nominal values of derivative instruments

The nominal value of derivative instruments is EUR 16.6 million (2023: 9.7). The nominal value includes gross nominal values

of all active agreements. The outstanding nominal value is not necessarily a measure or indicator of market risks.

Fair values of derivative instruments


EUR million	2024	2023
Forward currency exchange contracts
Positive fair values	0.1	0.0
Negative fair values		0.0
Total	0.1	0.0

Derivative instruments have been classified in level 2 of the IFRS fair value hierarchy. This means that fair values are based

on valuation models for which all inputs are observable, either directly or indirectly.

Sanoma has entered into netting agreements with all of its derivative instrument counterparties. Including netting agreements,

financial receivable to banks amount to EUR 0.1 million (2023: 0.04 liability).

Liquidity risks

Liquidity risk relates to servicing debt, financing investments and retaining adequate working capital. Sanoma aims to minimise

its liquidity risk by ensuring sufficient revenues, maintaining adequate committed credit limits, using several financing

institutions and forms of financing, and spreading loan repayments over a number of calendar years. The Group’s committed

funding must be sufficient to cover all of the obligations and funding needed for the normal business operations during the

following 12 months, and any outstanding commercial paper commitments. The undrawn committed credit facility was EUR

300 million at year end. Liquidity risk is monitored daily based on a two-week forecast, and longer term based on the calendar

year. In addition, the Sanoma Group Treasury Policy sets minimum requirements for liquidity reserves. The geopolitical

situation like the war in Ukraine and high inflation did not have any material impact on the funding sources or general

availability of liquid funds for Sanoma in 2024.

The Group’s financing facilities in 2024


EUR million	Amount of limits	Unused credit lines
Syndicated RCF	300.0	300.0
Syndicated and bilateral term loans	268.9
Bond	150.0
Commercial paper programmes	1,100.0	1,062.5
Current account limits	42.8	42.2

Sanoma signed a EUR 200 million syndicated term loan in December 2020 for the acquisition of Santillana Spain. After two

amortisations and one voluntary prepayment in earlier years, the loan amount was EUR 100 million at the end of 2023. The

loan was fully prepaid in September 2024. Otherwise it would have expired in December 2024. In March 2021, Sanoma issued

a EUR 200 million senior bond. The bond expired in March 2024.

In 2022, Sanoma signed a EUR 250 million syndicated term loan. The term loan was used mainly for the acquisition of

Pearson Italy and Germany. The closing of the acquisition was in August 2022. In 2024, Sanoma prepaid the loan partially by

EUR 81.1 million. As a result, the outstanding amount of the loan was EUR 168.9 million at the end of 2024. It will have a EUR

50 million amortisation in September 2025 and the final maturity date in August 2026.

Simultaneously with the term loan, Sanoma refinanced the EUR 300 million Revolving Credit Facility by inviting the banks to

participate in a new EUR 300 million Revolving Credit Facility. The RCF was signed in November 2022 and has a maturity of

three years with two one-year extension options. Sanoma has requested the first extension option in 2023 and the second

extension option in 2024. The maturity of the RCF is in 2027. The amount of the RCF reduces to EUR 268.5 million in the last

year, as one bank declined the second extension option. The RCF was fully unused at the end of 2024. In February 2023,

Sanoma signed a Sustainability Side Letter to add sustainability-linked KPIs to the EUR 300 million Revolving Credit Facility.

With the addition, a minor part of the pricing of the loan will be linked to Sanoma’s sustainability performance in reducing

greenhouse gas (GHG) emissions in line with Sanoma’s commitment to Science Based Targets and developing inclusive

learning solutions, more specifically accessibility of digital learning content and platforms. The KPIs will be measured annually

and the progress will be reported in Sanoma’s annual Sustainability Statement and also directly to the lenders.

In 2023, Sanoma also signed a bilateral loan of EUR 100 million with OP. The loan was drawn in March 2024. It was used for

the repayment of the old EUR 200 million bond. The rest of the bond was refinanced with the cash flow and existing facilities.

The loan had initially a maturity of 12 months from the drawdown and one extension option at the discretion of Sanoma.

Sanoma signed an amendment agreement with OP during 2024. In the agreement the maturity was extended to three years.

The loan expires in September 2027. Sanoma’s existing financing facilities and forecasted operating cash flows are sufficient

to cover funding needs in the coming year.

The Group’s loans from financial institutions include customary covenants related to factors such as the use of pledges and

mortgages, disposals of assets and key financial ratios. In all long-term loans from financial institutions, Sanoma has financial

covenants relating to the following ratios: consolidated equity to consolidated total assets and consolidated total net debt to

consolidated EBITDA. Ratios are measured quarterly. The Group has complied with the financial covenants throughout the

reporting period. In March 2025, Sanoma amended the equity ratio covenant limit in the loan agreements to better reflect the

seasonality of the business within a year, bringing it in line with the approach for the leverage ratio covenant.

There are no indications that the Group may have difficulties complying with the financial covenants during the next 12 months

at interim reporting dates. If Sanoma’s performance and profitability would develop unfavourably, it might increase the risk of

breaching the financial covenants. This could lead to an early expiry of the loans and make the refinancing difficult in a

situation where an agreement with the banks would not have been achieved. The covenants could also be impacted by

material changes in capital structure due to possible acquisitions or disposals. In that case, covenant levels would be re-

negotiated before the closing of any such transaction. The carrying amount of the loans, which include financial covenants,

was EUR 269.1 million at the end of 2024. Sanoma’s senior and hybrid bonds do not include any financial covenants.


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Financial liabilities


	2024				2023
EUR million	Carrying amount	Cash flow1	Undrawn from limits	Total	Carrying amount	Cash flow1	Undrawn from limits	Total
Loans from financial institutions	269.1	291.1	300.0	591,1	349.5	392.8	400.0	792.8
Bonds	149.2	168.0		168.0	199.9	201.3		201.3
Commercial paper programmes	37.4	37.5		37.5	0.0	0.0
Lease liabilities	133.9	133.9		133.9	154.9	154.9		154.9
Other interest-bearing liabilities	0.0	0.0		0.0	1.4	1.4		1.4
Trade payables and other liabilities2	99.6	99.6		99.6	96.1	96.1		96.1
Derivatives
Inflow (-)	0.0	-16.7		-16.7	0.0	-9.7		-9.7
Outflow (+)	0.0	16.6		16.6	0.0	9.7		9.7
Total	689.2	730.0	300.0	1,030.0	801.8	846.5	400.0	1,246.5

1 The estimate of the interest liability is based on the interest level at the balance sheet date.

2 Trade payables and other liabilities do not include accrued expenses and advances received.


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Maturity of financial liabilities 2024


EUR million	2025	2026	2027	2028	2029	2030−	Total
Loans from financial institutions	60.9	126.9	103.2				291.1
Bonds	6.0	6.0	156.0				168.0
Commercial paper programmes	37.5						37.5
Lease liabilities	28.7	26.8	26.2	35.8	6.6	9.8	133.9
Other interest-bearing liabilities	0.0						0.0
Trade payables and other liabilities1	99.6						99.6
Derivatives
Inflow (-)	-16.7						-16.7
Outflow (+)	16.6						16.6
Total	232.6	159.7	285.4	35.8	6.6	9.8	730.0

1 Trade payables and other liabilities do not include accrued expenses and advances received.

Maturity of financial liabilities 2023


EUR million	2024	2025	2026	2027	2028	2029−	Total
Loans from financial institutions	120.6	63.6	208.7				392.8
Bonds	201.3						201.3
Commercial paper programmes	0.0						0.0
Lease liabilities	26.3	26.6	24.8	25.1	36.0	16.2	154.9
Other interest-bearing liabilities	1.4						1.4
Trade payables and other liabilities1	96.1						96.1
Derivatives
Inflow (-)	-9.7						-9.7
Outflow (+)	9.7						9.7
Total	445.6	90.2	233.4	25.1	36.0	16.2	846.5

1 Trade payables and other liabilities do not include accrued expenses and advances received.

Credit risks

Sanoma’s credit risks are related to its business operations. Sanoma Group’s diversified operations significantly mitigate credit

risk concentration, and no individual customer or group of customers is material to the Group. The Group’s operational units

are responsible for managing credit risks related to their businesses.

Sanoma applies the simplified approach permitted by IFRS 9 Financial Instruments for trade receivables, which requires

expected lifetime losses to be recognised from initial recognition of the receivables. Sanoma uses a provision matrix to

measure expected credit losses of trade receivables. Loss rates are defined separately for different geographic regions, type

of business and types of customers (B2B and B2C). Loss rates are based on past information on actual credit loss experience.

These rates are adjusted by current information and future expectations on economic conditions where deemed necessary.

As Sanoma has no business in Ukraine or Russia, the war launched by Russia against Ukraine in February 2022 has a very

limited direct impact on Sanoma’s business.

Sanoma’s other receivables include small items and risk involved to individual items is not considered material. Thus, no

impairment allowance has been recognised for these receivables.

The carrying amounts of trade receivables and other receivables best indicate the amount that will be collected. The aging of

trade receivables is presented in the following table.


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Aging of trade receivables


	2024				2023
EUR million	Gross	Weighted average loss rate (%)	Impairment	Net	Gross	Weighted average loss rate (%)	Impairment	Net
Not due	77.7	0.6	-0.5	77.2	77.9	0.7	-0.5	77.4
Past due 1–30 days	12.4	0.5	-0.1	12.4	11.4	0.6	-0.1	11.3
Past due 31–120 days	18.3	2.7	-0.5	17.8	9.6	1.8	-0.2	9.4
Past due 121–180 days	1.4	31.0	-0.4	1.0	0.9	45.5	-0.4	0.5
Past due 181–360 days	0.7	37.1	-0.3	0.5	0.5	68.8	-0.3	0.1
Past due more than 1 year	2.9	110.2	-3.2	-0.3	3.8	105.8	-4.0	-0.2
Total	113.5		-5.0	108.5	104.0		-5.5	98.5

Trade receivables and other receivables are presented in Notes 4.2 and 4.3.

The credit risk relating to financing transactions is low. The Group’s Treasury Policy specifies that financing and derivative

transactions are carried out with counterparties of good credit standing, and divided between a sufficient number of

counterparties in order to protect financial assets. The Group has spread its credit risks efficiently by dealing with several

financing institutions.

Capital risk management

The Group has set the long-term financial targets that consist of an equity ratio between 35% and 45% and a net debt/

adjusted EBITDA ratio below 3.0 in order to maintain solid credit standing. The target ratios have been communicated publicly

and are monitored and reported quarterly.

When calculating the net debt/adjusted EBITDA ratio, the following adjustments are made to the reported EBITDA: items

affecting comparability are removed, the effects of acquisitions are added and the effects of divestments are deducted, and

the effects of the investments in programming and prepublication rights are deducted for the reporting period.

To strengthen the capital structure, the Group issued a hybrid bond of EUR 150 million in March 2023. The hybrid bond is

subordinated to the Group’s other debt obligations, but has priority over other equity items. The hybrid bonds bears a fixed

coupon interest of 8.000 per cent per annum until 16 March 2026, which is payable annually if decided so by the management,

and, thereafter a floating interest rate as defined in the terms and conditions of the hybrid bond. The hybrid bond does not

have a specified maturity date, but Sanoma is entitled to redeem the hybrid bond at their nominal amount on 16 March 2026,

and subsequently, on each interest payment date thereafter. The interest from the hybrid bond must be paid to the investors if

the Group pays dividends. If dividends are not paid, the Group will make a separate decision regarding interest payment on

the hybrid bond. Unpaid interest is accrued and paid if dividend is decided to be distributed or management makes a decision

on interest payment. The holders of the hybrid bond do not have the right to exercise control or vote at Annual General

Meetings.

In 2024, the Group’s equity ratio was 45.0% (2023: 42.5%) and net debt/adjusted EBITDA ratio was 2.2 (2023: 2.8).

Net debt


EUR million	2024	2023
Interest-bearing liabilities	589.6	705.6
Cash and cash equivalents	21.1	65.9
Total	568.5	639.7

Items that are regarded as interest-bearing liabilities are such short- or long-term liabilities which have separately determined

interest cost.

Sanoma Group does not have an official credit rating.


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5.3 Cash and cash equivalents

Cash and cash equivalents in the balance sheet


EUR million	2024	2023
Cash in hand and at bank	12.3	30.9
Deposits	8.8	35.0
Total	21.1	65.9

Deposits may include overnight deposits and money market deposits with maturities less than three months. These are cash

equivalents which are held to meet short-term payment obligations. Average maturity is very short and the fair values do not

differ significantly from the carrying amounts.

Cash and cash equivalents in the cash flow statement


EUR million	2024	2023
Cash and cash equivalents in the balance sheet	21.1	65.9
Bank overdrafts	-0.6	-0.8
Total	20.5	65.1

Cash and cash equivalents in the cash flow statement include cash and cash equivalents less bank overdrafts.

5.4 Equity


	Number of shares			Share capital and funds, EUR million
	All shares	Treasury shares	Total	Share capital	Treasury shares	Fund for invested unrestricted equity	Hybrid bond	Total
At 1 Jan 2023	163,565,663	-387,895	163,177,768	71.3	-5.2	209.8		275.9
Issuing of hybrid bond							149.1	149.1
Shares delivered		89,850	89,850		1.1			1.1
At 31 Dec 2023	163,565,663	-298,045	163,267,618	71.3	-4.1	209.8	149.1	426.1

Purchase of treasury shares		-266,199	-266,199		-1.9			-1.9
Shares delivered		214,554	214,554		3.0			3.0
At 31 Dec 2024	163,565,663	-349,690	163,215,973	71.3	-3.0	209.8	149.1	427.2

The maximum amount of share capital cannot exceed EUR 300.0 million (2023: 300.0). The share has no nominal value and no accountable par is in use. The shares have been fully paid.


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Treasury shares

In 2024, the Group purchased 266,199 (2023: 0) shares from the stock exchange. The cost of the purchased treasury shares

was EUR 1.9 million and it was recognised as a deduction from equity.

In 2024, Sanoma delivered a total of 214,554 own shares (without consideration and after taxes) to 184 employees of the

Group based on the Performance Share Plan 2021–2023 and Restricted Share Plan 2021–2023. In 2023, Sanoma delivered a

total of 89,850 own shares (without consideration and after taxes) to 154 employees of the Group based on the Performance

Share Plan 2020–2022 and Restricted Share Plan 2020–2022. At the end of the financial year, the Company held a total of

349,690 (2023: 298,045) own shares.

Fund for invested unrestricted equity

The fund for invested unrestricted equity includes other equity-related investments and that part of the share subscription price

which is not recognised in share capital according to a specific decision.

Hybrid loan

To strenghten the capital structure, the Group issued a hybrid bond of EUR 150 million in March 2023. The hybrid bond is

subordinated to the Group’s other debt obligations, but has priority over other equity items. The hybrid bonds bears a fixed

coupon interest of 8.000 per cent per annum until 16 March 2026, which is payable annually if decided so by the management,

and, thereafter a floating interest rate as defined in the terms and conditions of the hybrid bond. The hybrid bond does not

have a specified maturity date, but Sanoma is entitled to redeem the hybrid bond at their nominal amount on 16 March 2026,

and subsequently, on each interest payment date thereafter. The interest from the hybrid bond must be paid to the investors if

the Group pays dividends. If dividends are not paid, the Group will make a separate decision regarding interest payment on

the hybrid bond. Unpaid interest is accrued and paid if dividend is distributed or management makes a decision on interest

payment. The holders of the hybrid bond do not have the right to exercise control or vote at Annual General Meetings. The

transaction costs have been deducted from the capital.

The current interest period of EUR 12 million has been booked as a liability as of 31 December 2024, as the obligation to pay

the interest for the full interest cycle (12 months) arose when the AGM on 17 April 2024 decided to distribute dividends.

Translation differences

Translation differences include those items that have arisen in converting the financial statements of foreign group companies

from their operational currencies into euros.

Information on the capital risk management is presented in Note 5.2.

Dividends

The dividends paid in 2024 were EUR 0.37 per share, amounting to a total of EUR 60.5 million (2023: EUR 0.37 per share,

amounting to a total of EUR 60.4 million). The Board of Directors proposes to the Annual General meeting that a dividend of

EUR 0.39 per share, amounting approximately to EUR 63.7 million, is paid for the financial year 2024.


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5.5 Contingent liabilities


EUR million	2024	2023
Contingencies for own commitments
Pledges	0.8	0.9
Other items	24.3	24.3
Total	25.1	25.2

Other commitments
Royalties	0.5	0.5
Commitments for acquisitions of intangible assets (film and TV broadcasting rights included)	46.0	40.7
Other items	97.5	90.6
Total	143.9	131.8

Total	169.0	157.0

Non-cancellable minimum lease payments to be received by maturity


EUR million	2024	2023
Not later than 1 year	3.5	4.5
1–5 years	3.3	5.2
Total	6.8	9.6

Most of the non-cancellable minimum lease payments to be received are related to subleases. The Group sub-leases parts of

its office buildings. The Group has classified these leases as operating leases, because they do not transfer substantially all of

the risks and rewards incidental to the head lease.

Disputes and litigations

Sanoma has had a tax dispute concerning the treatment of value added tax (VAT) of certain magazines that were printed in

multiple locations in Europe, and processed in and distributed through a centralised logistics centre in Norway. The case

concerns tax years 2015–2018 and 2019–2021.

Based on the 2015–2018 decision from the Tax Adjustment Board on 29 April 2021, Sanoma paid EUR 25 million of VAT,

penalties and interests in July 2021. In August 2021, the tax authorities made an ex officio decision on a corporate income tax

(CIT) adjustment as a consequence of VAT adjustment and refunded EUR 3 million of CIT to Sanoma. On 16 December 2022,

Sanoma announced that it had received similar payment decisions based on the tax audits for the years 2019–2021. Based on

these, Sanoma paid EUR 11 million of VAT, penalties and interests in December 2022. In March 2023, the tax authorities

made an ex officio decision on a CIT adjustment and refunded EUR 2 million of CIT to Sanoma.

Sanoma considered the payments to be deposits with the tax authority, and reported the amounts paid as a receivable.

Similarly, the CIT refunds were considered to be a liability towards the tax authority, and reported the amounts received as a

liability.

On 8 June 2023, Sanoma announced that the Administrative Court has rejected its appeal for 2015–2018. Based on this

decision, the VAT claims for years 2015–2018 and 2019–2021 amounting to EUR 36 million were booked in Sanoma’s results

in Q2 2023. This was partially offset by a positive EUR 5 million adjustment to the income taxes.

In August 2024, the Supreme Administrative Court has rejected Sanoma’s application for a permission to appeal the

Administrative Court’s decision regarding the 2015–2018 VAT payment decisions. Thus, the Supreme Administrative Court will

not give a resolution to the Company’s appeal. Based on the decision the Administrative Court’s negative decision will hold.

Sanoma has appealed the 2019–2021 VAT decisions to the Tax Adjustment Board, where the process is still ongoing.

The VAT regulations have changed as of 1 July 2021, and thus further tax audits related to the matter are not expected.


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6. Other notes

6.1 Related party transactions

Sanoma Group’s related parties include subsidiaries, associated companies, joint ventures, members of the Board, President

and CEO and persons closely associated with them as well as entities controlled by management personnel. Remuneration

for key management is presented in Note 6.3. Transactions with joint ventures, associated companies and entities controlled

by management personnel are presented below. Transactions with subsidiaries are not presented as related party transactions

because they are eliminated in the consolidated figures. The transactions of the other shareholders of joint ventures are not

presented as related party transactions because those shareholders are not considered to be related parties on the basis of

the joint control agreement. Subsidiaries are presented in Note 6.4. In addition, the Sanoma Group’s related parties include

pension fund and employees’ profit-sharing funds. Besides pension fund, transactions with those parties are not material.

Pension funds are described in more detail in accounting policies and pension calculations in Note 4.9.

The Sanoma Group had no other significant related parties, which indicate related party definitions or with which significant

related party transactions exist during the financial year.

Transactions and outstanding balances with associated companies, joint ventures and entities controlled by management

personnel are presented in the following table.

Transactions with related parties


	Transaction values for the year		Balance as at 31 December
EUR million	2024	2023	2024	2023
Sale of goods and services
Entities controlled by management personnel	0.0	0.0
Joint ventures	0.1	0.1	0.0	0.0
Associates	0.8	2.1	0.0	0.3
Total	0.9	2.2	0.0	0.3
Purchase of goods and services
Entities controlled by management personnel	0.0
Associates	0.1	0.3	0.0	0.0
Total	0.1	0.3	0.0	0.0

The sale of goods and services to related parties are based on the Group’s effective market prices.


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6.2 Share-based payments

Performance share plan and restricted share plan

The Performance Share Plan and the Restricted Share Plan form the long-term part of the remuneration and commitment

programme for the executives and other selected key employees of Sanoma and its subsidiaries. The purpose of the

Performance Share Plan and the Restricted Share Plan is to encourage the executives and the selected key employees to

work on a long-term basis to increase shareholder value and to commit to the Company.

Performance Share Plan

The Board of Directors of Sanoma Corporation has on 7 February 2013, approved a share-based long-term incentive

programme (Performance Share Plan, PSP) to be offered to executives and managers of Sanoma Corporation and its

subsidiaries. The conditions and the issuance of the Performance Shares are decided on by the Sanoma Board of Directors in

accordance with the Human Resources Committee’s proposal. In general, Performance Shares vest over 3-year period and

vesting is subject to meeting Group performance targets set by the Board of Directors for annually commencing new plans.

The possible reward is paid as a combination of shares and cash. The reward’s cash component is dedicated to cover taxes

and tax-related costs.

Shares conditionally granted to the President and CEO and EMT members under the Performance Share Plan are subject to a

share ownership requirement that is determined by the Board of Directors in accordance with the Human Resources

Committee’s proposal. Until the required share holding is achieved, the President and the CEO and EMT members are

required to hold (and not sell) at least 50% of performance shares received.

■ The performance measures for the performance period 2020–2022 are based on adjusted earnings per share and

adjusted free cash flow targets in 2020.

■ The performance measures for the performance period 2021–2023 are based on adjusted earnings per share and

adjusted free cash flow targets in 2021.

■ The performance measures for the performance period 2022–2024 are based on adjusted earnings per share and

adjusted free cash flow targets in 2022–2023.

■ The performance measures for the performance period 2023–2025 are based on adjusted earnings per share and

adjusted free cash flow targets in 2023.

■ The performance measures for the performance period 2024–2026 are based on adjusted earnings per share and

adjusted free cash flow targets in 2024.

The President and CEO and EMT members are part of Sanoma’s Performance Share Plan.

In 2024, Sanoma delivered 201,775 Sanoma shares held by the Company to 183 employees based on the Performance

Share Plan 2021–2023 (without consideration and after taxes).

Restricted Share Plan

The Board of Directors of Sanoma Corporation has on 6 February 2020, approved a share-based long-term incentive

programme 2020–2022 (Restricted Share Plan, RSP) to be offered to executives and managers of Sanoma Corporation and

its subsidiaries. The conditions and the issuance of the Restricted Shares are decided on by the Sanoma Board of Directors in

accordance with the Human Resources Committee’s proposal. Restricted Shares vest over 3-year period in 2020–2022 and

vesting is subject to meeting service condition.

The Board of Directors of Sanoma Corporation has on 9 February 2021, approved a share-based long-term incentive

programme 2021–2023 (Restricted Share Plan, RSP) to be offered to executives and managers of Sanoma Corporation and

its subsidiaries. The conditions and the issuance of the Restricted Shares are decided on by the Sanoma Board of Directors in

accordance with the Human Resources Committee’s proposal. Restricted Shares vest over 3-year period in 2021–2023 and

vesting is subject to meeting service condition.

The Board of Directors of Sanoma Corporation has on 10 February 2022, approved a share-based long-term incentive

programme 2022–2024 (Restricted Share Plan, RSP) to be offered to executives and managers of Sanoma Corporation and

its subsidiaries. The conditions and the issuance of the Restricted Shares are decided on by the Sanoma Board of Directors in

accordance with the Human Resources Committee’s proposal. Restricted Shares vest over 3-year period in 2022–2024 and

vesting is subject to meeting service condition.

The Board of Directors of Sanoma Corporation has on 10 February 2023, approved a share-based long-term incentive

programme 2023–2025 (Restricted Share Plan, RSP) to be offered to executives and managers of Sanoma Corporation and

its subsidiaries. The conditions and the issuance of the Restricted Shares are decided on by the Sanoma Board of Directors in

accordance with the Human Resources Committee’s proposal. Restricted Shares vest over 3-year period in 2023–2025 and

vesting is subject to meeting service condition.

The Board of Directors of Sanoma Corporation has on 7 February 2024, approved a share-based long-term incentive

programme 2024–2026 (Restricted Share Plan, RSP) to be offered to executives and managers of Sanoma Corporation and

its subsidiaries. The conditions and the issuance of the Restricted Shares are decided on by the Sanoma Board of Directors in

accordance with the Human Resources Committee’s proposal. Restricted Shares vest over 3-year period in 2024–2026 and

vesting is subject to meeting service condition.

The possible rewards are paid net in shares.

Shares conditionally granted to the President and CEO and EMT members under the Restricted Share Plan are subject to

share ownership requirement that is determined by the Board of Directors in accordance with the Human Resources

Committee’s proposal. Until the required share holding is achieved, the President and the CEO and EMT members are

required to hold (and not sell) at least 50% of performance shares received.

In 2024, Sanoma delivered 12,779 Sanoma shares held by the Company to two employees based on the Restricted Share

Plan 2021–2023 (without consideration and after taxes).


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More specific information on the performance and restricted share plan grants are presented in the following tables.

Information on the management ownership is presented in Note 6.3.

Basic information


Plan	Performance Share Plan					Restricted Share Plan
Instrument	Performance Share Plan 2020−2022	Performance Share Plan 2021−2023	Performance Share Plan 2022−2024	Performance Share Plan 2023−2025	Performance Share Plan 2024−2026	Restricted Share Plan 2020−2022	Restricted Share Plan 2021−2023	Restricted Share Plan 2022−2024	Restricted Share Plan 2023−2025	Restricted Share Plan 2024−2026	Total / Average
Initial amount, gross pcs (includes share and cash portions)	525,000	495,000	540,000	750,000	964,500	30,000	25,000	20,000	41,000	40,000	3,430,500
Initial allocation date	6.2.2020	9.2.2021	13.4.2022	19.4.2023	18.4.2024	1.3.2022	9.2.2021	13.4.2022	19.4.2023	18.4.2024
Vesting date / reward payment at the latest	30.4.2023	30.4.2024	30.4.2025	30.4.2026	30.4.2027	30.4.2023	30.4.2024	30.4.2025	30.4.2026	30.4.2027
Maximum contractual life, yrs	3.2	3.2	3.0	3.0	3.0	1.3	3.2	3.0	3.0	3.0	3.0
Remaining contractual life, yrs	Expired	Expired	0.3	1.3	2.3	Expired	Expired	0.3	1.3	2.3	1.9
Number of persons at the end of the reporting year			0	228	227			4	5	3
Payment method	Equity and cash	Equity and cash	Equity and cash	Equity and cash	Equity and cash	Equity and cash	Equity and cash	Equity and cash	Equity and cash	Equity and cash


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Changes	Performance Share Plan					Restricted Share Plan
	Performance Share Plan 2020−2022	Performance Share Plan 2021−2023	Performance Share Plan 2022−2024	Performance Share Plan 2023−2025	Performance Share Plan 2024−2026	Restricted Share Plan 2020−2022	Restricted Share Plan 2021−2023	Restricted Share Plan 2022−2024	Restricted Share Plan 2023−2025	Restricted Share Plan 2024−2026	Total
1 Jan 2023
Outstanding at the beginning of the reporting period	143,018	401,055	540,000			10,000	21,900	12,000			1,127,973

Changes during the period
Granted				704,655		10,000		4,500	41,000		760,155
Forfeited		13,778	25,656	7,791			5,900	5,625			58,750
Exercised	143,018					20,000					163,018

31 Dec 2023
Outstanding at the end of the period	0	387,277	514,344	696,864	0	0	16,000	10,875	41,000	0	1,666,360

1 Jan 2024
Outstanding at the beginning of the reporting period	0	387,277	514,344	696,864	0	0	16,000	10,875	41,000	0	1,666,360

Changes during the period
Granted					940,800			9,000		32,500	982,300
Forfeited		5,093	514,344	99,201	3,412						622,050
Exercised		382,184					16,000				398,184

31 Dec 2024
Outstanding at the end of the period	0	0	0	597,663	937,388	0	0	19,875	41,000	32,500	1,628,426


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Fair value determination

Assumptions made in determining the fair value of share rewards in the performance and restricted share plan:

■ Liabilities arising from share-based payments at the end of the period represent the amount booked until the end of the

reporting period of the employers social costs relating to the payable rewards. The fair value of the liability is remeasured

at each reporting date until the possible reward payment. The fair value of the liability will thus change in accordance with

the Sanoma share price.

■ The fair value for the equity settled portion has been determined at grant using the fair value of Sanoma share as of the

grant date less the expected dividends paid before possible share delivery.

■ The fair value is expensed until vesting.

Valuation parameters for instruments granted during period


EUR	2024	2023
Share price at grant	6.94	8.24
Share price at the end of the reporting period	7.67	6.95
Expected dividends pa.	0.34	0.38
Fair value of the equity-settled portion at grant	5.58	6.74

Effect of share-based incentives on the result and financial position during the period


EUR million	2024	2023
Expenses for the financial year	3.1	4.1
of which equity-settled	2.9	4.0
Liabilities arising from share-based payments at the end of the period	0.2	0.1

At the end of the period the estimated future cash payment to be paid to the tax authorities from share-based payments is

EUR 4.9 million (2023: 3.4).


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6.3 Management compensation, benefits and ownership

Management remuneration and ownership, 2024


				Number of performance shares and restricted shares
	Remuneration (EUR 1,000)	Number of shares on 31 December 2024	Performance and restricted share plan costs (EUR 1,000)	Performance Share Plan 2022−20241	Performance Share Plan 2023−20251	Performance Share Plan 2024−20261	Restricted Share Plan 2023−20251	Restricted Share Plan 2024−20261
Board of Directors
Pekka Ala-Pietilä, Chair	150	15,000
Klaus Cawén, Vice Chair (as of 17 April 2024)	64	6,200
Julian Drinkall	92
Rolf Grisebach	98
Anna Herlin	78	1,000
Mika Ihamuotila	80	150,000
Sebastian Langenskiöld	89	645,963
Eugenie van Wiechen	77
Nils Ittonen, Vice Chair (until 17 April 2024)	33
Denise Koopmans (until 17 April 2024)	33
Total	792	818,163

President and CEO
Rob Kolkman	1,227	87,059	454		78,000	123,000
Total	1,227	87,059	454		78,000	123,000

Executive Management Team
Alexander Green		19,696			75,010	91,100	10,000	20,000
Pia Kalsta		47,410			20,020	39,500
Total	1,492	67,106	521		95,030	130,600	10,000	20,000

1 Sanoma Performance Share Plan was adopted in 2013. Sanoma Restricted Share Plan was adopted in 2014. Number of Sanoma performance shares in the Performance Share Plan 2024–2026 to the President and CEO and EMT members is presented on target level. Should the maximum level of performance measures be reached

the earned share reward is 150% of the shares at target level. Performance period for PSP 2022−2024 is a two-year period (2022–2023); for Performance Share Plan 2023−2025 is a one-year period (2023), and for Performance Share Plan 2024−2026, a one-year period (2024). Shares conditionally granted to the President and CEO and

EMT members under the Performance Share and Restricted Share Plan are subject to share ownership requirement that is determined by the Board of Directors in accordance with the Human Resources Committee’s proposal. Until the required shareholding is achieved, the President and the CEO and EMT members are required to hold

(and not sell) at least 50% of performance and restricted shares received.

Figures include the remuneration (meeting fees, base salaries, fringe benefits, short- and long-term incentives) that has been paid for assignments handled by those persons during the period. EMT members do not receive separate remuneration for their

Board memberships in the Group companies. Performance and restricted share plan costs include costs during membership. The Group has no outstanding receivables or loans from the management. Remuneration does not include pension costs. The

pension cost of the President and CEO and EMT is presented in paragraph ’Other benefits of the management’.


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Management remuneration and ownership, 2023


				Number of performance shares and restricted shares
	Remuneration (EUR 1,000)	Number of shares on 31 December 2023	Performance and restricted share plan costs (EUR 1,000)	Performance Share Plan 2021−20231	Performance Share Plan 2022−20241	Performance Share Plan 2023−20251	Restricted Share Plan 2021−20231	Restricted Share Plan 2023−20251
Board of Directors
Pekka Ala-Pietilä, Chair	150	15,000
Nils Ittonen, Vice Chair	101	59,000
Julian Drinkall	93
Rolf Grisebach	87
Anna Herlin	78	1,000
Mika Ihamuotila	77	150,000
Denise Koopmans	92
Sebastian Langenskiöld	84	645,963
Eugenie van Wiechen (as of 19 April 2023)	52
Rafaela Seppälä (until 19 April 2023)	32
Total	845	870,963

President and CEO
Susan Duinhoven	1,275	601,010	1,791	130,600	100,000	100,000
Total	1,275	601,010	1,791	130,600	100,000	100,000

Executive Management Team
Alexander Green		9,843			46,450	57,700	10,000	10,000
Pia Kalsta		36,650		16,064	12,400	15,400	6,000
Rob Kolkman		44,675		40,875	32,688	60,000
Total	1,880	91,168	723	56,939	91,538	133,100	16,000	10,000

1 Sanoma Performance Share Plan was adopted in 2013. Sanoma Restricted Share Plan was adopted in 2014. Number of Sanoma performance shares granted in the Performance Share Plan 2022−2024 and Performance Share Plan 2023−2025 to the President and CEO and EMT members is presented on target level. Should the

maximum level of performance measures be reached the earned share reward is 150% of the shares at target level. Performance period for the PSP 2022−2024 is a two-year period (2022–2023) and for Performance Share Plan 2023−2025 a one-year period (2023). Shares conditionally granted to the President and CEO and EMT

members under the Performance Share and Restricted Share Plan are subject to share ownership requirement that is determined by the Board of Directors in accordance with the Human Resources Committee’s proposal. Until the required shareholding is achieved, the President and the CEO and EMT members are required to hold (and

not sell) at least 50% of performance and restricted shares received.

pension cost of the President and CEO and EMT is presented in paragraph 'Other benefits of the management'.


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All remuneration decisions for the President and CEO were made within the framework of the Remuneration Policy presented

to Sanoma Corporation’s Annual General Meeting 2023, held on 19 April 2023, in Helsinki. The remuneration and benefits

payable to the President and CEO and Executive Management Team (EMT) members are approved by the Board of Directors

of Sanoma, in accordance with the Human Resources Committee’s proposal. In addition, the President and CEO and EMT

members receive bonuses according to the short-term incentive plan approved each year by the Board of Directors. The

performance criteria set at the beginning of the year in the 2024 short-term incentive plan of EMT members were based on

achieving financial targets of operational EBIT, free cash flow and net sales as well as sustainability targets linked to Employee

Engagement Survey results and certain climate, data, privacy and AI targets. For the year 2024, the short-term incentive

earning opportunity for the President and CEO was set at 66.7% of his annual salary at target level and 100% at maximum

level. For other EMT members, the short-term incentive earning opportunity set at the beginning of the year 2024, is 50% of

salary at target level and 75% at maximum level.

The President and CEO and EMT members are part of Sanoma’s long-term incentive schemes. The long-term incentives are

part of the Group’s incentive and commitment programme and are distributed by the Sanoma Board of Directors, in

accordance with the Human Resources Committee’s proposal.

Notifications of the President and CEO’s transactions are announced on Sanoma’s website as of 3 July 2016. More details on

remuneration is available in the Remuneration Report 2024 and on Sanoma’s website.

Other benefits of the management

The President and CEO Rob Kolkman’s period of notice is six months either from the President and CEO’s or the Company’s

part. If the executive contract is terminated by the Company, a severance payment equalling to six month’s salary in addition

to the salary for the notice period will be paid to the President and CEO. The severance pay is accompanied by a fixed-term

non-competition clause.

The additional pension benefits of the President and CEO and other EMT members are based on defined contribution. The

President and CEO is entitled to an additional pension benefit contribution, which amounts to 15% of his salary (excl. holiday

allowance). The President and CEO’s and the EMT members’ retirement age is the usual retirement age in their home country.

For the President and CEO Rob Kolkman, the additional pension contribution cost was EUR 90,038 for the year 2024, and the

statutory pension cost for the year 2024 was EUR 137,553. The pension costs of EMT members were EUR 222,543 in 2024

(Including both statutory and voluntary) (2023: 248,569).


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6.4 Subsidiaries, associated companies and joint ventures

Subsidiaries at 31 Dec 2024


	Parent Company holding, %	Sub-group’s Parent Company holding, %	Group holding, %	Book value in Parent Company, EUR million
Subsidiaries of Parent Company
Sanoma Trade Oy, Finland	100.0		100.0	0.7
Sanoma Media Finland Ltd, Finland1	100.0		100.0	131.4
Sanoma Pro Ltd, Finland1	100.0		100.0	670.5
Subsidiaries of Sanoma Learning B.V.
Bureau ICE B.V., The Netherlands			100.0
L.C.G. Malmberg B.V., The Netherlands			100.0
Uitgeverij Van In N.V., Belgium			100.0
Iddink Group B.V., The Netherlands			100.0
Gelukskoffer Scholen B.V., The Netherlands			100.0
Subsidiary of Sanoma Trade Oy
Forum Cinemas Ltd, Ukraine			100.0
Subsidiaries of Sanoma Media Finland Ltd
Sanomala Oy, Finland		100.0	100.0
Sanoma Kids Finland Oy, Finland		100.0	100.0
Sanoma Tekniikkajulkaisut Oy, Finland		60.0	60.0
Oy Suomen Tietotoimisto - Finska Notisbyrån Ab, Finland		75.4	75.4
Kaiku Entertainment Oy, Finland		100.0	100.0
Sanoma Manu Oy, Finland		100.0	100.0
Rauman Suorajakelu Oy, Finland		100.0	100.0
Subsidiaries of Sanoma Pro Ltd
Nowa Era Sp. z.o.o., Poland		100.0	100.0
Sanoma Learning B.V., The Netherlands		100.0	100.0
Sanoma Utbildning AB, Sweden		100.0	100.0
Tutorhouse Oy, Finland		100.0	100.0
itslearning AS, Norway		100.0	100.0
Sanoma Educación, S.L., Spain		100.0	100.0
Ítaca, S.L., Spain		100.0	100.0


	Parent Company holding, %	Sub-group’s Parent Company holding, %	Group holding, %	Book value in Parent Company, EUR million
ITSL KeyMgmt AS, Norway		100.0	100.0
Sanoma Italia S.p.A, Italy		100.0	100.0
Subsidiaries of Sanoma Educación S.L.
Grup Promotor D´Ensenyement i Difusió en Catalá, S.L., Spain			100.0
Edicions Voramar, S.A., Spain			100.0
Ediciones Grazalema, S.L., Spain			100.0
Edicions Obradoiro, S.L., Spain			100.0
Zubia Editoriala, S.L., Spain			100.0
Sanoma Infantil y Juvenil, S.L., Spain			100.0
Clickart, Taller De Comunicacio, S.L., Spain			100.0
Subsidiaries of itslearning AS
itslearning UK Ltd, United Kingdom			100.0
itslearning AB, Sweden			100.0
itslearning GmbH, Germany			100.0
itslearning A/S, Denmark			100.0
itslearning München GmbH, Germany			100.0
Subsidiary of Nowa Era Sp. z.o.o.
Vulcan Sp. z.o.o., Poland			100.0
Subsidiaries of Iddink Group B.V.
Iddink Digital B.V., The Netherlands			100.0
Iddink Learning Materials B.V., The Netherlands			100.0
Iddink Spain S.L.U, Spain			100.0
The Implementation Group B.V., The Netherlands			100.0
				802.6

1 Parent Company of sub-group

In 2024, Sanoma did not have subsidiaries with material non-controlling interests. Total non-controlling interest reported in the

balance sheet 31 Dec 2024 is EUR 1.1 million (2023: 2.6).


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Associated companies and joint ventures at 31 Dec 2024


	Parent Company holding, %	Sub-group’s Parent Company holding, %	Group holding, %	Book value in Parent Company, EUR million
Sanoma Corporation
Valkeakosken Yhteistalo Oy, Finland	21.9		21.9	0.2
Sanoma Media Finland Ltd
Story House Egmont Oy Ab, Finland		50.0	50.0
Platco Oy, Finland		33.3	33.3
Beely Oy, Finland		30.6	30.6
Suomen Nettikirpputorit Oy, Finland		0.0	0.0
Oy Suomen Tietotoimisto - Finska Notisbyrån Ab
Retriever Suomi Oy, Finland			49.0
L.C.G. Malmberg B.V.
Methodeonderzoek V.O.F., The Netherlands			25.0
A.S.S.U. Adressenbestand Samenwerkende Schoolboeken Uitgevers V.O.F, The Netherlands			50.0
				0.2

6.5 Events after the balance sheet date

On 20 January 2025, Sanoma announced that it had acquired a portfolio of learning materials for secondary and vocational

education from Finnish publisher Edita Oppiminen Oy, who had made a decision to discontinue its learning material publishing

business. The acquired product offering complements Sanoma’s current product portfolio for secondary and vocational

education in Finland. In 2024, pro forma net sales of the acquired portfolio amounted to approx. EUR 4 million. No employees

transferred from the seller to Sanoma with the transaction.


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Parent Company Financial Statements

Parent Company income statement, FAS


EUR million	Note	2024	2023
Net sales	2	63.9	63.4
Other operating income	3	0.3	3.4
Personnel expenses	4	-16.3	-19.2
Depreciation, amortisation and impairment losses	8–10	-1.5	-1.2
Other operating expenses	5	-60.3	-57.4
OPERATING PROFIT (LOSS)		-13.9	-11.0
Financial income and expenses	6	-5.9	2.2
RESULT BEFORE APPROPRIATIONS AND TAXES		-19.8	-8.8
Appropriations	13	19.2	9.5
Income taxes	7	-0.1	0.2
RESULT FOR THE YEAR		-0.7	0.9


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Parent Company balance sheet, FAS

Assets


EUR million	Note	31 Dec 2024	31 Dec 2023
NON-CURRENT ASSETS
Intangible assets	8	2.8	3.4
Tangible assets	9	4.7	4.7
Investments	10	1,383.3	1,438.9
Long-term receivables	11	0.8	1.8
NON-CURRENT ASSETS, TOTAL		1,391.6	1,448.8

CURRENT ASSETS
Income Tax receivables		0.1
Short-term receivables	11	71.1	71.9
Cash and cash equivalents		11.8	44.5
CURRENT ASSETS, TOTAL		82.9	116.4

ASSETS, TOTAL		1,474.5	1,565.2

Equity and liabilities


EUR million	Note	31 Dec 2024	31 Dec 2023
SHAREHOLDERS’ EQUITY	12
Share capital		71.3	71.3
Treasury shares		-3.0	-4.1
Fund for invested unrestricted equity		209.8	209.8
Retained earnings		341.9	401.9
Result for the year		-0.7	0.9
SHAREHOLDERS’ EQUITY, TOTAL		619.3	679.7

APPROPRIATIONS		0.9	0.9

LIABILITIES
Non-current liabilities	14	518.3	399.7
Current liabilities	15	336.0	484.9
LIABILITIES, TOTAL		854.3	884.6
EQUITY AND LIABILITIES, TOTAL		1,474.5	1,565.2


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Parent Company cash flow statement, FAS


EUR million	2024	2023
OPERATIONS
Result for the period	-0.7	0.9
Adjustments
Income taxes	0.1	-0.2
Appropriations	-19.2	-9.5
Financial income and expenses	5.9	-2.2
Depreciation, amortisation and impairment losses	1.5	1.2
Gains / losses on sale of non-current assets	0.0	-3.0
Other adjustments	3.6	3.2
Change in working capital
Change in trade and other receivables	2.7	24.0
Change in trade and other payables, and provisions	5.1	-4.5
Dividends received		1.9
Interest paid	-47.2	-28.6
Other financial items	-3.0	2.8
Taxes paid	-0.3	0.2
CASH FLOW FROM OPERATIONS	-51.6	-13.7


EUR million	2024	2023
INVESTMENTS
Acquisition of tangible and intangible assets	-0.9	-0.7
Investments in group companies	-180.0
Sales of tangible and intangible assets	0.1	5.4
Loans granted	-17.2	-9.7
Repayments of loan receivables	260.2	79.4
Interest received	43.6	35.2
CASH FLOW FROM INVESTMENTS	105.7	109.6

CASH FLOW BEFORE FINANCING	54.2	95.9
FINANCING
Purchase of treasury shares	-1.9
Change in loans with short maturity	37.2	-68.9
Drawings of other loans	325.8	189.3
Repayments of other loans	-397.4	-179.1
Dividends paid	-60.5	-60.4
Group contributions	9.8	48.6
CASH FLOW FROM FINANCING	-86.9	-70.5

Change in cash and cash equivalents according to cash flow statement	-32.8	25.4
Net increase (+) / decrease (-) in cash and cash equivalents	-32.8	25.4
Cash and cash equivalents at 1 Jan	44.5	19.2
Cash and cash equivalents at 31 Dec	11.8	44.5


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Notes to the Parent Company Financial Statements

1. Parent Company’s accounting policies

for Financial Statements

Sanoma Corporation is a public limited-liability company, which is domiciled in Helsinki. Sanoma Corporation was founded on

1 May 1999 as the result of a combination merger. Sanoma Corporation’s financial statements have been prepared according

to Finnish Accounting Standards (FAS). Sanoma Corporation is the Parent Company of Sanoma Group. Sanoma has

prepared its Consolidated Financial Statements in accordance with most recent IFRS Accounting Standards as adopted by the

European Union. The Finnish accounting practices applied by Sanoma Corporation and accounting principles of IFRS

standards are mainly consistent thus the main accounting principles are available in accounting policies of Consolidated

Financial Statements.

The most significant differences between the accounting policies of the Parent Company and Sanoma Group are the following:

Pensions

Statutory pension cover of Sanoma Corporation’s employees is managed by pension insurance companies. Supplementary

pension benefits are managed by Sanoma Pension Fund and by insurance companies. Pension settlements and pension

costs are recognised during the period in which they are incurred. The potential deficit of pension fund’s pension liability has

been recognised as an obligatory provision under the balance sheet of Sanoma Corporation.

Interest in Group companies

Interest in Group companies is measured at cost less any impairment losses. Interest in Group companies is tested for

impairment annually. Impairment testing also includes net receivables from subsidiaries.

The fair value of the subsidiary shares has been assessed based on income approach, in which the fair value of investment is

calculated based on the discounted cash flow model (DCF) or the dividend discount model. Impairment need is assessed by

comparing the fair value of the subsidiary shares to the book value in the Parent Company’s balance sheet and possible write-

down is booked through profit or loss.

Real estate investments and housing property investments

In accordance with the Finnish Accounting Act, investments in real estates and housing property are presented as investments

of non-current assets.

2. Net sales


EUR million	2024	2023
Net sales by business
Management and service fees	63.9	63.4
Total	63.9	63.4

Net sales by market areas
Finland	25.4	28.1
Other EU countries	35.5	32.2
Other countries	3.0	3.1
Total	63.9	63.4

3. Other operating income


EUR million	2024	2023
Rental income	0.1	0.1
Capital gains	0.0	3.0
Other	0.2	0.3
Total	0.3	3.4


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4. Personnel expenses


EUR million	2024	2023
Wages, salaries and fees	-14.3	-16.7
Pension costs	-1.7	-1.6
Other social expenses	-0.3	-0.9
Total	-16.3	-19.2
Average number of employees (full-time equivalents)	100	125

The remuneration to the President and CEO and Board of Directors is presented separately, divided by persons, in the

Consolidated Financial Statements, Note 6.3.

5. Other operating expenses


EUR million	2024	2023
Office and ICT expenses	-49.2	-45.8
Professional fees	-2.0	-3.0
Rents	-1.0	-1.0
Other	-8.2	-7.6
Total	-60.3	-57.4

Principal Audit fees


EUR million	2024	2023
Statutory audit	-0.4	-0.3
Total	-0.4	-0.3

6. Financial income and expenses


EUR million	2024	2023
Dividend income
From Group companies		1.9
Total		1.9

Interest income from investments under non-current assets
From Group companies	39.1	37.9
Total	39.1	37.9

Other interest and financial income
From Group companies	2.1	2.5
From other companies	1.8	1.8
Exchange rate gains	3.3	5.1
Total	7.2	9.4

Interest and other financial expenses
To Group companies	-6.1	-5.1
To other companies	-42.9	-37.7
Exchange rate losses	-3.2	-4.3
Total	-52.2	-47.1

Total	-5.9	2.2

7. Income taxes


EUR million	2024	2023
Income tax on operational income	0.0	-0.1
Income taxes from previous periods	-0.1	0.4
Total	-0.1	0.2


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8. Intangible assets

Intangible assets 2024


EUR million	Immaterial rights	Other intangible assets	Advance payments	Total
Acquisition cost at 1 Jan	0.0	9.8	0.0	9.8
Increases		0.1	0.8	0.8
Reclassifications		0.0	0.0
Acquisition cost at 31 Dec	0.0	9.8	0.8	10.6

Accumulated amortisation and impairment losses at 1 Jan		-6.4		-6.4
Amortisation for the period		-1.0		-1.0
Impairment losses for the period		-0.4		-0.4
Accumulated amortisation and impairment losses at 31 Dec	0.0	-7.8		-7.8
Book value at 31 Dec 2024		2.1	0.8	2.8

Intangible assets 2023


EUR million	Immaterial rights	Other intangible assets	Advance payments	Total
Acquisition cost at 1 Jan	0.0	10.2	1.0	11.2
Increases		0.4		0.4
Decreases		-1.7	-0.1	-1.8
Reclassifications		0.9	-0.9
Acquisition cost at 31 Dec	0.0	9.8	0.0	9.8

Accumulated amortisation and impairment losses at 1 Jan		-7.0		-7.0
Decreases		1.7		1.7
Amortisation for the period		-1.0		-1.0
Accumulated amortisation and impairment losses at 31 Dec		-6.4		-6.4
Book value at 31 Dec 2023	0.0	3.4	0.0	3.4

9. Tangible assets

Tangible assets 2024


EUR million	Land and water	Machinery and equipment	Other	Total
Acquisition cost at 1 Jan	4.2	0.7	0.3	5.2
Increases		0.1		0.1
Decreases		0.0	-0.1	-0.1
Acquisition cost at 31 Dec	4.2	0.8	0.3	5.2

Accumulated depreciation and impairment losses at 1 Jan		-0.5		-0.5
Decreases		0.0		0.0
Depreciation for the period		-0.1		-0.1
Accumulated depreciation and impairment losses at 31 Dec		-0.6		-0.6
Book value at 31 Dec 2024	4.2	0.2	0.3	4.7

Tangible assets 2023


EUR million	Land and water	Machinery and equipment	Other	Total
Acquisition cost at 1 Jan	6.4	0.9	0.3	7.6
Increases		0.1	0.0	0.1
Decreases	-2.3	-0.2		-2.5
Acquisition cost at 31 Dec	4.2	0.7	0.3	5.2

Accumulated depreciation and impairment losses at 1 Jan		-0.5		-0.5
Decreases		0.2		0.2
Depreciation for the period		-0.2		-0.2
Accumulated depreciation and impairment losses at 31 Dec		-0.5		-0.5
Book value at 31 Dec 2023	4.2	0.3	0.3	4.7


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10. Investments

Investments 2024


EUR million	Interest in Group companies	Receivables from Group companies	Interest in associated companies	Other shares and holdings	Total
Acquisition cost at 1 Jan	635.5	811.7	0.2	5.2	1,452.6
Increases	180.0	110.0			290.0
Decreases		-345.6			-345.6
Acquisition cost at 31 Dec	815.5	576.1	0.2	5.2	1,397.0

Accumulated impairment losses at 1 Jan	-12.9			-0.8	-13.7
Accumulated impairment losses at 31 Dec	-12.9			-0.8	-13.7
Book value at 31 Dec 2024	802.6	576.1	0.2	4.4	1,383.3

Investments 2023


EUR million	Interest in Group companies	Receivables from Group companies	Interest in associated companies	Other shares and holdings	Total
Acquisition cost at 1 Jan	1,352.8	886.2	0.2	5.2	2,244.4
Increases		4.8			4.8
Decreases	-717.3	-79.3			-796.6
Acquisition cost at 31 Dec	635.5	811.7	0.2	5.2	1,452.6

Accumulated impairment losses at 1 Jan	-730.2			-0.8	-731.0
Decreases	717.3				717.3
Accumulated impairment losses at 31 Dec	-12.9			-0.8	-13.7
Book value at 31 Dec 2023	622.6	811.7	0.2	4.4	1,438.9

11. Receivables

Long-term receivables


EUR million	2024	2023
Accrued income1	0.8	1.8

Short-term receivables


EUR million	2024	2023
Trade receivables	0.8	2.0
Loan receivables	32.3	39.1
Accrued income1	38.0	30.7
Total	71.1	71.9

Receivables from Group companies
Trade receivables	0.8	1.9
Loan receivables	32.3	39.1
Accrued income	31.7	22.9
Total	64.8	63.9

1 Most significant items under accrued items are the Group contributions and interest income accruals.


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12. Shareholders’ equity


EUR million	2024	2023
Restricted equity
Share capital at 1 Jan	71.3	71.3
Share capital at 31 Dec	71.3	71.3

Restricted equity 31 Dec	71.3	71.3

Unrestricted equity
Treasury shares at 1 Jan	-4.1	-5.2
Purchase of treasury shares	-1.9
Shares delivered	3.0	1.1
Treasury shares at 31 Dec	-3.0	-4.1

Fund for invested unrestricted equity at 1 Jan	209.8	209.8
Fund for invested unrestricted equity at 31 Dec	209.8	209.8

Retained earnings at 1 Jan	402.8	460.8
Dividends paid	-60.5	-60.4
Share based payments	1.8	2.2
Shares delivered	-2.1	-0.7
Retained earnings at 31 Dec	341.9	401.9

Result for the year	-0.7	0.9
Unrestricted equity 31 Dec	548.0	608.5

Total	619.3	679.7

Further information on share capital is presented in the Consolidated Financial Statements, Note 5.4.

Distributable earnings


EUR million	2024	2023
Treasury shares	-3.0	-4.1
Fund for invested unrestricted equity	209.8	209.8
Retained earnings	341.9	401.9
Result for the year	-0.7	0.9
Total	548.0	608.5

13. Appropriations


EUR million	2024	2023
Group contributions	19.2	9.8
Cumulative depreciation differences	0.0	-0.3
Total	19.2	9.5

14. Non-current liabilities


EUR million	2024	2023
Debentures	299.8	150.0
Loans from financial institutions	218.9	250.0
Accrued expenses	-0.4	-0.3
Total	518.3	399.7


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15. Current liabilities


EUR million	2024	2023
Debentures		199.9
Loans from financial institutions	50.6	100.8
Commercial papers	37.4
Trade payables	6.4	1.8
Accrued expenses1	20.4	20.2
Advances received	0.3	0.3
Other liabilities	220.8	161.8
Total	336.0	484.8

Liabilities to Group companies
Trade payables	0.6	0.4
Accrued expenses	0.0	0.0
Other liabilities2	220.4	161.4
Total	221.0	161.8

1 Most significant items under accrued items are related to expense accruals and accrued personnel expenses.

2 Other liabilities to Group companies include balances in IHC account.

16. Contingent liabilities


EUR million	2024	2023
Contingencies for own commitments
Other contingent liability for own commitments	15.0	15.0
Total	15.0	15.0

Contingencies incurred on behalf of Group companies
Guarantees	92.2	118.4
Total	92.2	118.4

Other liabilities1	63.6	54.6
Total	63.6	54.6

Total	170.8	188.0

1 Other liabilities include commitments of contracts.

Nominal values of derivatives


EUR million	2024	2023
Currency derivatives
Forward exchange contracts, external	16.6	9.7
Forward exchange contracts, internal	0.1	0.0
Total	16.7	9.8

Fair values of derivatives


EUR million	2024	2023
Currency derivatives
Forward exchange contracts, external	0.1	0.0


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Board’s proposal for

distribution of profits

The retained earnings of the Parent Company Sanoma Corporation, according to the balance sheet as at 31 December 2024,

were EUR 338,224,130.24 of which the profit for the financial year 2024 was EUR -746,275.17. Including the fund for invested

unrestricted equity of EUR 209,767,212.33 the distributable funds amounted to EUR 547,991,342.57 at 31 December 2024.

The Board of Directors will propose to the Annual General Meeting that

■ a dividend of EUR 0.39 per share shall be paidEUR 63,654,229.47*

■ shareholders’ equity shall be set atEUR 484,337,113.10

No essential changes have taken place in the financial status of the Company after the financial year. The Company’s liquidity

is good and according to the Board of Directors the proposed dividend will not compromise the Company’s liquidity.

* The dividend will be paid in three instalments. The first instalment of EUR 0.13 per share shall be paid to a shareholder who

is registered in the shareholder register of the Company maintained by Euroclear Finland Ltd on the dividend record date

2 May 2025. The payment date proposed by the Board of Directors for this instalment is 9 May 2025.

The second instalment of EUR 0.13 per share shall be paid in September 2025. The second instalment shall be paid to a

shareholder who is registered in the shareholder register of the Company maintained by Euroclear Finland Ltd on the dividend

record date, which, together with the dividend payment date, shall be decided by the Board of Directors in its meeting

scheduled for 9 September 2025.

The third instalment of EUR 0.13 per share shall be paid in November 2025. The third instalment shall be paid to a

shareholder who is registered in the shareholder register of the Company maintained by Euroclear Finland Ltd on the dividend

record date, which, together with the dividend payment date, shall be decided by the Board of Directors in its meeting

scheduled for 29 October 2025.


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Signatures to the Financial Statements and

the Report of the Board of Directors

The financial statements prepared in accordance with applicable accounting regulations, give a true and fair view of the

assets, liabilities, financial position and profit or loss of the company and the companies included in its consolidated financial

statements.

The Report by the Board of Directors contains a truthful description of the development and result of the business operations

of the company and the group, as well as a description of the most significant risks and uncertainties and other aspects of the

company’s condition.

The sustainability statement included in the Report by the Board of Directors has been prepared in accordance with Chapter 7

of the accounting act and Article 8 of the taxonomy regulation.

Helsinki, 25 March 2025

Pekka Ala-PietiläKlaus CawénJulian Drinkall

ChairVice Chair

Rolf GrisebachAnna HerlinMika Ihamuotila

Sebastian LangenskiöldEugenie van Wiechen

Rob Kolkman

President and CEO

Auditor’s note

A report on the audit performed has been issued today.

Helsinki, 28 March 2025

PricewaterhouseCoopers Oy

Authorised Public Accountants

Tiina Puukkoniemi

APA


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Auditor’s Report (Translation of the Finnish original)

To the Annual General Meeting of Sanoma Corporation

Report on the Audit of the Financial Statements

Opinion

In our opinion

■ the consolidated financial statements give a true and fair view of the group’s financial position, financial performance and

cash flows in accordance with IFRS Accounting Standards as adopted by the EU

■ the financial statements give a true and fair view of the parent company’s financial performance and financial position in

accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with

statutory requirements.

Our opinion is consistent with the additional report to the Audit Committee.

What we have audited

We have audited the financial statements of Sanoma Corporation (business identity code 1524361-1) for the year ended 31

December 2024. The financial statements comprise:

■ the consolidated income statement, statement of comprehensive income, consolidated balance sheet, changes in

consolidated equity, consolidated cash flow statement and notes to the consolidated financial statements, which include

material accounting policy information and other explanatory information

■ the parent company balance sheet, parent company income statement, parent company cash flow statement and notes to

the parent company financial statements.

Basis for Opinion

We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice

are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the parent company and of the group companies in accordance with the ethical requirements that are

applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with

these requirements.

To the best of our knowledge and belief, the non-audit services that we have provided to the parent company and group

companies are in accordance with the applicable law and regulations in Finland and we have not provided non-audit services

that are prohibited under Article 5(1) of Regulation (EU) No 537/2014. The non-audit services that we have provided are

disclosed in note 2.5 to the Consolidated Financial Statements.

Our Audit Approach


	Overview
	■We have applied an overall group materiality of 8,800,000 euros ■The group audit scope encompassed the most significant group companies and covers the vast majority of group’s revenues, assets and liabilities. ■Valuation of goodwill and other intangible assets identified in connection with business combinations ■Valuation of prepublication rights included in intangible assets ■Revenue recognition ■Valuation of interests in group companies and receivables from group companies in the Parent Company’s financial statements

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial

statements. In particular, we considered where management made subjective judgements; for example, in respect of

significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.


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Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance

whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are

considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of

users taken on the basis of the financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group

materiality for the consolidated financial statements as set out in the table below. These, together with qualitative

considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to

evaluate the effect of misstatements on the financial statements as a whole.


Overall group materiality	8,800,000 euros
How we determined it	We used a combination of net sales and result before taxes as benchmarks to determine overall group materiality.
Rationale for the materiality benchmark applied	We determined that net sales and result before taxes as a combination provide a suitable representation of the volume of Sanoma’s operations and profitability.

How we tailored our group audit scope

We tailored the scope of our audit, taking into account the structure of the Sanoma Group, the accounting processes and

controls, and the industry in which the group operates.

At the end of 2024 Sanoma Group includes two reportable segments: Sanoma Learning and Sanoma Media Finland. Sanoma

Learning’s main markets are the Netherlands, Spain, Poland, Italy, Belgium and Finland. We have scoped our audit to obtain

sufficient audit coverage of Sanoma Group consolidated financial statements. The group audit scope encompassed the most

significant group companies and covers the vast majority of group’s revenues, assets and liabilities.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial

statements of the current period. These matters were addressed in the context of our audit of the financial statements as a

whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters

consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.


Key audit matter in the audit of the group	How our audit addressed the key audit matter
Valuation of goodwill and other intangible assets identified in business combinations
Refer to Accounting policies for consolidated financial statements and Note 3.2. As of December 2024, Goodwill amounted to EUR 810 million. Other intangible assets and immaterial rights amounted to EUR 475 million including other intangible assets identified in business combinations. Goodwill is not amortised but tested at least once a year for possible impairment. Other intangible assets are amortised using the straight-line method over their useful lives. For the purpose of impairment testing, goodwill has been allocated to two cash flow generating units (CGU): ▪ Sanoma Learning, goodwill of EUR 700 million ▪ Sanoma Media Finland, goodwill of EUR 109 million. The goodwill impairment testing is carried out by determining the present value of future cash flows of the CGUs. This assessment involves considerable management judgment with respect to assumptions used in the cash flow projections specifically relating to the long-term growth rate, profitability level and discount rate. The valuation of goodwill and other intangible assets identified in business combinations are considered a key audit matter due to their financial significance as well as due to the management judgement involved in the valuation.	Our audit procedures included, for example, the following: ▪ We obtained an understanding of the methodology used in the goodwill impairment testing. ▪ We tested the mathematical accuracy of the calculations. ▪ We assessed the reasonableness of the estimated future profitability levels and their consistency with the approved budgets and forecasts. ▪ We tested the reasonableness of the discount rates, the long-term growth rates, and other assumptions by e.g., comparing the inputs to observable market data. ▪ We tested management’s sensitivity analysis to ascertain the extent of change in key assumptions that either individually or collectively could result in an impairment of goodwill. ▪ We evaluated the management’s estimate of the amortisation period used for intangible assets, including those identified in business combinations. ▪ We assessed the adequacy of the disclosures.


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Key audit matter in the audit of the group	How our audit addressed the key audit matter
Valuation of prepublication rights included in intangible assets
Refer to Accounting policies for consolidated financial statements and Note 3.2. As of December 31, 2024, prepublication rights amount to EUR 136 million. The prepublication rights of learning materials and solutions are mostly internally generated intangible assets that are amortised using the straight-line method over their useful lives. The group reviews the carrying values of these intangible assets to determine that they do not exceed the estimated future economic benefits. Valuation of these intangible assets is considered a key audit matter due to management judgement involved in determining the amortisation period and in assessing the recoverability of these assets.	Our audit procedures included, for example, the following: ▪ We obtained an understanding of the accounting and valuation principles of the prepublication rights. ▪ We evaluated the management’s estimate of the amortisation period used for the prepublication rights. ▪ We evaluated management’s estimate of the future economic benefits of these assets. ▪ We tested, on a sample basis, additions to the prepublication rights.
Revenue recognition
Refer to Note 2.2. in the consolidated financial statements The group’s net sales from continued operations amount to EUR 1 345 million. Revenue from the Learning segment is primarily generated through sale of educational books and granting access to online learning platforms as well as physical distribution of learning materials. The Media Finland segment principally generates revenue through magazine and newspaper publishing (circulation sales and advertising sales), TV and Radio operations, online and subscription video on demand services as well as events. Revenue recognition principles vary depending on the nature of the revenue stream. Revenue recognition is considered a key audit matter due to the significance of revenue to the financial statements and due to management judgement involved in selecting the appropriate revenue recognition method for the different revenue streams.	Our audit procedures included, for example, the following: ▪ We obtained an understanding of the company’s revenue recognition policies and compared these to the respective standards on revenue recognition. ▪ We tested the internal controls that the company uses to assess the completeness, accuracy and timing of revenue recognized. ▪ We tested revenue contracts and transactions on a sample basis. ▪ We tested, on a sample basis, revenue related balances in the balance sheet, such as provision for returns and advances received.


Key audit matter in the audit of the parent company	How our audit addressed the key audit matter
Valuation of interests in group companies and receivables from group companies in the Parent Company’s financial statements
Refer to the Parent Company’s accounting policies and Note 10 The investments in group companies’ shares amounts to EUR 803 million. The Parent Company’s investments also include EUR 576 million of loan receivables from group companies. Interest in group companies is tested for impairment annually using the income approach. In applying this approach, the fair value of an investment is calculated based on the discounted cash flow model or the discounted dividend model. Valuation of interests in group companies and receivables from group companies is considered a key audit matter in the audit of the Parent Company due to the significance of these investments to the financial statements and due to management judgement involved in the income approach used to test the valuation of these investments.	Our audit procedures included, for example, the following: ▪ We assessed the reasonableness of management assumptions relating to the estimated future results by e.g., checking their consistency with the approved budgets and forecasts. ▪ We assessed the inputs and methodology in determining the discount rates, and in evaluating the long-term growth rates by e.g., comparing the inputs to observable market data. ▪ We reviewed the Parent Company’s disclosures in respect of the impairment testing.
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated financial statements or the parent company financial statements.

Responsibilities of the Board of Directors and the President and CEO for the

Financial Statements

The Board of Directors and the President and CEO are responsible for the preparation of consolidated financial statements

that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of financial

statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial

statements in Finland and comply with statutory requirements. The Board of Directors and the President and CEO are also

responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are

free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors and the President and CEO are responsible for assessing the

parent company’s and the group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going

concern and using the going concern basis of accounting. The financial statements are prepared using the going concern

basis of accounting unless there is an intention to liquidate the parent company or the group or to cease operations, or there is

no realistic alternative but to do so.


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Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance

is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will

always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material

if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on

the basis of these financial statements.

As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional

scepticism throughout the audit. We also:

■ Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design

and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to

provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one

resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of

internal control.

■ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in

the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company’s or the

group’s internal control.

■ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related

disclosures made by management.

■ Conclude on the appropriateness of the Board of Directors’ and the President and CEO’s use of the going concern basis of

accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions

that may cast significant doubt on the parent company’s or the group’s ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related

disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are

based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may

cause the parent company or the group to cease to continue as a going concern.

■ Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether

the financial statements represent the underlying transactions and events so that the financial statements give a true and

fair view.

■ Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the

entities or business units within the group as a basis for forming an opinion on the group financial statements. We are

responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We

remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the

audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements

regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to

bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most

significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe

these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in

extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse

consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Reporting Requirements

Appointment

We were first appointed as auditors by the annual general meeting on 21 March 2017. Our appointment represents a total

period of uninterrupted engagement of 8 years.

Other Information

The Board of Directors and the President and CEO are responsible for the other information. The other information comprises

the report of the Board of Directors and the information included in the Annual Report but does not include the financial

statements or our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the

audit, or otherwise appears to be materially misstated. With respect to the report of the Board of Directors, our responsibility

also includes considering whether the report of the Board of Directors has been prepared in compliance with the applicable

provisions, excluding the sustainability report information on which there are provisions in Chapter 7 of the Accounting Act and

in the sustainability reporting standards.

In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial

statements and the report of the Board of Directors has been prepared in compliance with the applicable provisions. Our

opinion does not cover the sustainability report information on which there are provisions in Chapter 7 of the Accounting Act

and in the sustainability reporting standards.

If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are

required to report that fact. We have nothing to report in this regard.


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Other statements

We support that the financial statements should be adopted. The proposal by the Board of Directors regarding the use of the

profit shown in the balance sheet (and the distribution of other unrestricted equity) is in compliance with the Limited Liability

Companies Act. We support that the Members of the Board of Directors of the parent company and the President and CEO

should be discharged from liability for the financial period audited by us.

Helsinki

PricewaterhouseCoopers Oy

Authorised Public Accountants

Tiina Puukkoniemi

Authorised Public Accountant (KHT)


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Independent Auditor’s Reasonable Assurance Report on

Sanoma Corporation’s ESEF Financial Statements

(Translation of the Finnish original)

To the Management of Sanoma Corporation

We have been engaged by the Management of Sanoma Corporation (business identity code 1524361-1) (hereinafter also “the

Company”) to perform a reasonable assurance engagement on the Company’s consolidated IFRS financial statements for the

financial year 1.1. -31.12.2024 in European Single Electronic Format (“ESEF financial statements”) version

743700XJC24THUPK0S03-2024-12-31-fi.zip.

Management’s Responsibility for the ESEF Financial Statements

The Management of Sanoma Corporation is responsible for preparing the ESEF financial statements so that they comply with

the requirements as specified in the Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 (“ESEF

requirements”). This responsibility includes the design, implementation and maintenance of internal control relevant to the

preparation of ESEF financial statements that are free from material noncompliance with the ESEF requirements, whether due

to fraud or error.

Our Independence and Quality Management

We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional

Accountants (including International Independence Standards) issued by the International Ethics Standards Board for

Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and

due care, confidentiality and professional behaviour.

Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a

system of quality management including policies or procedures regarding compliance with ethical requirements, professional

standards and applicable legal and regulatory requirements.

Our Responsibility

Our responsibility is to express an opinion on the ESEF financial statements based on the procedures we have performed and

the evidence we have obtained.

We conducted our reasonable assurance engagement in accordance with the International Standard on Assurance

Engagements (ISAE) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial

Information. That standard requires that we plan and perform this engagement to obtain reasonable assurance about whether

the ESEF financial statements are free from material noncompliance with the ESEF requirements.

A reasonable assurance engagement in accordance with ISAE 3000 (Revised) involves performing procedures to obtain

evidence about the ESEF financial statements compliance with the ESEF requirements. The procedures selected depend on

the auditor’s judgment, including the assessment of the risks of material noncompliance of the ESEF financial statements with

the ESEF requirements, whether due to fraud or error. In making those risk assessments, we considered internal control

relevant to the Company’s preparation of the ESEF financial statements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, Sanoma Corporation’s ESEF financial statements for the financial year ended 31.12.2024 comply, in all

material respects, with the minimum requirements as set out in the ESEF requirements.

Our reasonable assurance report has been prepared in accordance with the terms of our engagement. We do not accept, or

assume responsibility to anyone else, except for Sanoma Corporation for our work, for this report, or for the opinion that we

have formed.

Helsinki

PricewaterhouseCoopers Oy

Authorised Public Accountants

Tiina Puukkoniemi

Authorised Public Accountant (KHT)


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Assurance Report on the Sustainability Statement

(Translation of the Finnish original)

To the Annual General Meeting of Sanoma Corporation

We have performed a limited assurance engagement on the group sustainability statement of Sanoma Corporation (business

identity code 1524361-1) that is referred to in Chapter 7 of the Accounting Act and that is included in the report of the Board of

Directors for the reporting period 1.1.–31.12.2024.

Opinion

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that

causes us to believe that the group sustainability statement does not comply, in all material respects, with

1. the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting standards (ESRS);

2. the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council on

the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (EU

Taxonomy).

Point 1 above also contains the process in which Sanoma Corporation has identified the information for reporting in

accordance with the sustainability reporting standards (double materiality assessment).

Our opinion does not cover the tagging of the group sustainability statement in accordance with Chapter 7, Section 22, of the

Accounting Act, because sustainability reporting companies have not had the possibility to comply with that requirement in the

absence of the ESEF regulation or other European Union legislation.

Basis for Opinion

We performed the assurance of the group sustainability statement as a limited assurance engagement in compliance with

good assurance practice in Finland and with the International Standard on Assurance Engagements (ISAE) 3000 (Revised)

Assurance Engagements Other than Audits or Reviews of Historical Financial Information.

Our responsibilities under this standard are further described in the Responsibilities of the Authorised Group Sustainability

Auditor section of our report.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Authorised Group Sustainability Auditor's Independence and Quality Management

We are independent of the parent company and of the group companies in accordance with the ethical requirements that are

applicable in Finland and are relevant to our engagement, and we have fulfilled our other ethical responsibilities in accordance

with these requirements.

Our firm applies International Standard on Quality Management ISQM 1, which requires the firm to design, implement and

operate a system of quality management including policies or procedures regarding compliance with ethical requirements,

professional standards and applicable legal and regulatory requirements.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director of Sanoma Corporation are responsible for:

■ the group sustainability statement and for its preparation and presentation in accordance with the provisions of Chapter 7

of the Accounting Act, including the process that has been defined in the sustainability reporting standards and in which

the information for reporting in accordance with the sustainability reporting standards has been identified

■ the compliance of the group sustainability statement with the requirements laid down in Article 8 of the Regulation (EU)

2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable

investment, and amending Regulation (EU) 2019/2088;

■ such internal control as the Board of Directors and the Managing Director determine is necessary to enable the

preparation of a group sustainability statement that is free from material misstatement, whether due to fraud or error.

Inherent Limitations in the Preparation of a Sustainability Statement

In reporting forward-looking information in accordance with ESRS, management of the Company is required to prepare the

forward-looking information on the basis of assumptions that have been disclosed in the sustainability statement about events

that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since

anticipated events frequently do not occur as expected.


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Responsibilities of the Authorised Group Sustainability Auditor

Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the group sustainability

statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that

includes our opinion. Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of the group sustainability

statement.

Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires that we exercise

professional judgment and maintain professional scepticism throughout the engagement. We also:

■ Identify and assess the risks of material misstatement of the group sustainability statement, whether due to fraud or error,

and obtain an understanding of internal control relevant to the engagement in order to design assurance procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent

company’s or the group’s internal control.

■ Design and perform assurance procedures responsive to those risks to obtain evidence that is sufficient and appropriate to

provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one

resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of

internal control.

Description of the Procedures That Have Been Performed

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a

reasonable assurance engagement. The nature, timing and extent of assurance procedures selected depend on professional

judgment, including the assessment of risks of material misstatement, whether due to fraud or error. Consequently, the level of

assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been

obtained had a reasonable assurance engagement been performed.

Our procedures included for example the following:

■ We interviewed the company’s management and the individuals responsible for collecting and reporting the information

contained in the group sustainability statement at the group level, as well as at different levels and business areas of the

organization to gain an understanding of the sustainability reporting process and the related internal controls and

information systems.

■ We familiarised ourselves with the background documentation and records prepared by the company where applicable

and assessed whether they support the information contained in the group sustainability statement.

■ We performed a site visit at the company’s printing house in Tampere, Finland.

■ We assessed the company's double materiality assessment process in relation to the requirements of the ESRS

standards, as well as whether the information provided about the assessment process complies with the ESRS standards.

■ We assessed whether the sustainability information contained in the group sustainability statement complies with the

ESRS standards.

■ Regarding the EU taxonomy information, we gained an understanding of the process by which the company has identified

the group's taxonomy-eligible and taxonomy-aligned economic activities, and we assessed the compliance of the

information provided with the regulations.

Helsinki

PricewaterhouseCoopers Oy

Authorised Sustainability Auditors

Tiina Puukkoniemi

Authorised Sustainability Auditor


Annual Report 2024	171



OUR BUSINESS IN BRIEF	FINANCIALS AND SUSTAINABILITY	GOVERNANCE	≡

Information for investors

Annual General Meeting 2025

The Annual General Meeting 2025 will be held on Tuesday, 29 April 2025 at 10:00 EET. The registration and advance voting

will begin on 26 March 2025 at 10:00 EET.

More information can be found on Sanoma’s website.

Dividend

The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.39 per share shall be paid in three

equal instalments.

First instalment of EUR 0.13 per share

■ Record date 2 May 2025

■ Payment date 9 May 2025

Second instalment of EUR 0.13 per share

■ The record date for the second instalment will be decided by the Board of Directors in September, and the estimated

payment date will be in September 2025.

Third instalment of EUR 0.13 per share

■ The record date for the third instalment will be decided by the Board of Directors in October, and the estimated payment

date will be in November 2025.

Financial reporting in 2025

Sanoma will publish the following financial reports during 2025:

■ Interim Report 1 January–31 March 2025 Tuesday, 29 April 2025

■ Half-Year Report 1 January–30 June 2025 Wednesday, 30 July 2025

■ Interim Report 1 January–30 September 2025 Thursday, 30 October 2025

The reports are published in English and Finnish and can be downloaded from Sanoma’s website.

Changes in contact information

Euroclear Finland Ltd maintains a list of the Company’s shares and shareholders. Shareholders who wish to change their

personal or contact information are kindly asked to directly contact their own securities account operator.

Investor Relations

The main task of Sanoma Investor Relations is to ensure that the capital markets have correct and sufficient information in

order to determine the value of Sanoma share. Sanoma has a centralised Investor Relations function that serves analysts and

investors, and coordinates investor meetings and activities.

Contact information

Kaisa Uurasmaa

Head of Investor Relations and Sustainability

Mobile: +358 40 560 5601

kaisa.uurasmaa@sanoma.com

Meeting requests and inquiries

ir@sanoma.com

sanoma.com/en/investors


Report of the Board of Directors	3
Sustainability Statement	20
General information	20
Environmental information	43
Social Information	62
Governance information	82
Consolidated Financial Statements	91
Notes to the Consolidated Financial Statements	95
Parent Company Financial Statements	152
Board’s proposal for distribution of profits	161
Signatures to the Financial Statements and the Report of the Board of Directors	162
Auditor’s Report	163
Independent Auditor’s Reasonable Assurance Report on Sanoma Corporation’s ESEF Financial Statements	168
Assurance Report on the Sustainability Statement	169


1. Accounting policies for Consolidated Financial Statements	96
1.1 Corporate information	96
1.2 Basis of preparation of financial statements	96
1.3 Accounting policies	96
1.4 Adoption of new and amended IFRS standards and IFRIC interpretations	102
2. Financial performance	103
2.1 Operating segments	103
2.2 Net sales	107
2.3 Other operating income	111
2.4 Employee benefit expenses	111
2.5 Materials and services and other operating expenses	112
2.6 Depreciation, amortisation and impairment losses	113
2.7 Financial items	113
2.8 Income taxes and deferred taxes	114
2.9 Earnings per share	118
3. Acquisitions and capital expenditure	119
3.1 Acquisitions and divestments	119
3.2 Intangible assets	121
3.3 Property, plant and equipment and right-of- use assets	124